BERLIN STUNG BY CRITICISM FROM A RECESSIONWEARY GERMAN BUSINESS COMMUNITY CHANCELLOR HELMUT KOHL'S GOVERNMENT UNVEILED AUSTERITY MEASURES DESIGNED TO PREVENT FURTHER BALLOONING OF THE FEDERAL DEFICIT BY CUTTING SOCIAL SPENDING IN PARTICULAR BENEFITS FOR THE UNEMPLOYED AND FREEZING PAY FOR CIVIL SERVANTS BONN AIMS TO SAVE MORE THAN 12 BILLION FOR 1994 THAT IT HOPES WILL SUFFICE TO KEEP THE 1994 FEDERAL BUDGET DEFICIT AT THE CURRENT LEVEL OF 40 BILLION SHRINKING TAX REVENUE HAS PUSHED THE DEFICIT ESTIMATES UP BY 145 BILLION IN ONLY A MATTER OF MONTHS THE PLAN STILL NEEDS APPROVAL BY THE BUNDESTAG WHERE IT COULD BE AMENDED BUT THE AUSTERITY MEASURES CAME NONE TOO SOON FOR A GOVERNMENT UNDER HEAVY ATTACK FOR ITS FISCAL MANAGEMENT ONE OF THE BROADEST INDICTMENTS OF THE GOVERNMENT'S ECONOMIC POLICIES WAS DELIVERED MONDAY BY TYLL NECKER PRESIDENT OF THE FEDERATION OF GERMAN INDUSTRY PROBABLY THE COUNTRY'S MOST INFLUENTIAL BUSINESS LOBBYING GROUP COMPLAINING OF A VERY WORRISOME CRISIS OF CONFIDENCE THAT HAD BEEN CAUSED BY OVERLY OPTIMISTIC PROGNOSES AND A LACK OF SPENDING DISCIPLINE MR NECKER MOCKED BONN SAYING ONE WHO AT THE SAME TIME PREACHES ABOUT AN IRON WILL TO SAVE AND THEN SETS OFF ONE OF THESE COST AVALANCHES IMPAIRS HIS OWN CREDIBILITY AMONG THE COST AVALANCHES THAT HAVE MOST ANGERED GERMAN EXECUTIVES IS THE GOVERNMENT'S PLAN FOR OLDAGE CARE INSURANCE BONN HAS PROMISED TO COMPENSATE COMPANIES FOR FOOTING HALF THE BILL FOR THE INSURANCE BY ELIMINATING EMPLOYEES' PAY ON THE FIRST TWO DAYS OF SICK LEAVE BUT INDUSTRY LEADERS FEAR THAT COSTS WILL STILL EXPLODE FORCING THEM TO PAY FAR MORE THAN IS NOW PROJECTED ANXIETY ABOUT THE INSURANCE PLAN COMES ON TOP OF THE BUSINESS COMMUNITY'S RESENTMENT OF A TAX BURDEN THAT HAS MOUNTED PRECIPITOUSLY SINCE GERMAN UNIFICATION LUMPING THAT WITH THE COUNTRY'S LABOR COSTS THE HIGHEST IN THE WORLD AND SHORT WORK HOURS MR NECKER CALLED GERMANY A TRIPLE NEGATIVE WORLD CHAMPION AND SAID TAXES ARE BECOMING SO LARGE THAT GERMANY IS BEGINNING THE TRANSITION FROM MARKET ECONOMY TO STATE ECONOMY CRITICISM OF THE CENTERRIGHT COALITION'S ECONOMIC POLICIES HAS BEEN GROWING FOR SEVERAL YEARS AMONG ITS TRADITIONAL SUPPORTERS IN THE BUSINESS WORLD THE TONE HOWEVER HAS SHARPENED IN RECENT MONTHS AS THE RECESSION HAS DEEPENED SO FAR MR KOHL HAS CHARACTERISTICALLY SHRUGGED OFF THE CRITICISM OBSERVING REPEATEDLY THAT GERMAN BUSINESSMEN AND GERMANS IN GENERAL HAVE A KNACK FOR WHINING AT A HIGH PITCH HIS AIDES PLAY DOWN THE FRICTION BETWEEN BUSINESS AND GOVERNMENT ON SOME ISSUES INDUSTRY CAN BE STUBBORN BUT THIS IS CONCENTRATED ON A FEW THEMES LIKE OLDAGE CARE SAYS ONE BONN OFFICIAL OVERALL THOUGH AND ESPECIALLY ON THE COMPETITIVENESS ISSUE WE'RE WORKING ON THE SAME LINE THAT ASSESSMENT HOWEVER SEEMS TO BE A MINORITY VIEW IN AN EDITORIAL ABOUT MR NECKER'S BROADSIDE THE MUNICH NEWSPAPER SUEDDEUTSCHE ZEITUNG SAID THE RIFT BETWEEN THE TOP BUSINESS ORGANIZATIONS AND THE CONSERVATIVELIBERAL FEDERAL GOVERNMENT HAS NEVER BEEN NEARLY SO DEEP AS IT IS NOW 9306300103 930630 MEDICINE LAW MAY ALLOW FEW TRANSPLANTS FOR FOREIGNERS BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL THE DEBATE OVER HOW BEST TO ALLOCATE SCARCE ORGANS FOR TRANSPLANTS IS ABOUT TO HEAT UP AGAIN CONGRESS IS ABOUT TO OPEN A HORNET'S NEST WITH A BILL THAT WOULD TIGHTEN LAWS ON ORGAN SHARING ONE ISSUE THIS TIME AROUND WHETHER DONATED ORGANS SHOULD BE TRANSPLANTED INTO NONUS RESIDENTS TRANSPLANT ISSUES HAVE BEEN NEWS OF LATE WITH QUESTIONS RAISED ABOUT HOW THE GOVERNOR OF PENNSYLVANIA MANAGED TO GET A NEW HEART AND LIVER IN 24 HOURS THE RISING COST OF ORGAN PROCUREMENTS THE USE OF DONORS WHO AREN'T BRAINDEAD AND THE EXPERIMENTAL GRAFTING OF ANIMAL ORGANS INTO HUMANS THE COMMON DENOMINATOR IN ALL OF THESE TRANSPLANT ISSUES SAYS UNIVERSITY OF MINNESOTA ETHICIST ARTHUR CAPLAN IS THE QUESTION OF HOW TO BE FAIR IN A SYSTEM OF RATIONED CARE THAT CONCERN TAKES ON EVEN GREATER SIGNIFICANCE IF THE CLINTON ADMINISTRATION'S PLAN FOR HEALTHCARE REFORM REQUIRES MEDICAL RATIONING HE SAYS PRESSURE TO BE FAIR IS STRONGER THAN EVER DR CAPLAN SAYS GOVERNMENT BOTH CONGRESS AND THE ADMINISTRATION IS GETTING INCREASINGLY NERVOUS THE HEAT COULD RISE LATER THIS WEEK WHEN THE HOUSE SUBCOMMITTEE ON HEALTH AND THE ENVIRONMENT IS EXPECTED TO APPROVE LEGISLATION THAT WOULD EFFECTIVELY BAN FOREIGN TRANSPLANT PATIENTS FROM RECEIVING SCARCE ORGANS AT US HOSPITALS THE MEASURE PART OF THE REAUTHORIZATION BILL FOR THE NATIONAL ORGAN TRANSPLANT ACT WOULD REQUIRE ORGAN TRANSPLANT CENTERS TO PLACE NONUS RESIDENTS ON A SECOND LOWERPRIORITY WAITING LIST ONLY AFTER THE MAIN WAITING LIST HAS BEEN EXHAUSTED COULD THE ORGAN BE OFFERED TO A FOREIGNER THAT WOULD ESSENTIALLY SHUT OUT PATIENTS WHO COME TO THIS COUNTRY FOR LIFESAVING HEALTH CARE SUCH AS HEART AND LIVER TRANSPLANTS SINCE IT'S UNLIKELY THAT ENOUGH ORGANS WOULD BE AVAILABLE TO SATISFY THOSE ON THE MAIN WAITING LIST OF US RESIDENTS WE OUGHT TO GIVEN THE SCARCITY OF ORGANS TRANSPLANT THOSE AMERICAN RESIDENTS ON THE WAITING LIST FIRST SAYS MICHAEL HASH SENIOR STAFF ASSOCIATE TO THE SUBCOMMITTEE MR HASH NOTES THAT OTHER NATIONS HAVE ALLOCATION POLICIES SIMILAR TO THE ONE NOW BEING CONSIDERED HERE FEDERAL LAW CURRENTLY LIMITS NONUS RESIDENT TRANSPLANTS TO 10 OF A HOSPITAL TRANSPLANT PROGRAM'S PATIENTS TO SOME PHYSICIANS THE PROPOSED POLICY SMACKS OF A DOUBLE STANDARD SINGLING OUT TRANSPLANTATION WHILE SIDESTEPPING THE BROADER ISSUE SHOULD THE US HEALTHCARE SYSTEM TREAT NONRESIDENTS FROM HAITIAN REFUGEES WITH AIDS TO UNINSURED GUNSHOT VICTIMS AT LOCAL EMERGENCY ROOMS PHYSICIANS TRY TO DO EVERYTHING THEY CAN FOR A PERSON WHO KNOCKS ON THE DOOR NO MATTER WHAT PASSPORT THE PATIENT CARRIES SAYS DR JAMES YOUNG DIRECTOR OF THE TRANSPLANT PROGRAM AT METHODIST HOSPITAL AND THE BAYLOR COLLEGE OF MEDICINE IN HOUSTON A PROGRAM MADE FAMOUS BY CARDIAC PIONEER DR MICHAEL DEBAKEY THAT HAS AN INTERNATIONAL REPUTATION AND ATTRACTS FOREIGN PATIENTS METHODIST CURRENTLY HAS THREE SURVIVING FOREIGN HEART TRANSPLANT PATIENTS IN VENEZUELA TURKEY AND SAUDI ARABIA NATIONS WHERE TRANSPLANTS WEREN'T AVAILABLE DR YOUNG SAYS IF YOU ARE A US CITIZEN AND YOU CAN'T PAY FOR YOUR TRANSPLANT YOU CAN'T GET INTO A PROGRAM THAT'S THE DILEMMA THAT HAS TO BE ADDRESSED FIRST HE ADDS THE FOREIGN TRANSPLANT RECIPIENTS DEBATE IS NOT NEW AND HAS BEEN STIRRED IN THE PAST BY ALLEGATIONS OF HOSPITALS PROVIDING PREFERENTIAL TREATMENT FOR WEALTHY FOREIGN CONTRIBUTORS THE LAST GOAROUND ABOUT EIGHT YEARS AGO LED TO THE 10 LIMIT THE NEW BILL WHICH MAY ENCOUNTER PRESSURE FROM HOSPITAL LOBBYISTS AND OTHERS WOULD ALSO FORCE ORGAN BANKS TO STICK TO A SINGLE AREAWIDE WAITING LIST OF PATIENTS RATHER THAN ROTATE AVAILABLE ORGANS AMONG HOSPITALS IN THEIR SERVICE AREA A GENERAL ACCOUNTING OFFICE STUDY RELEASED IN APRIL FOUND THAT A MAJORITY OF ORGAN BANKS SERVING MORE THAN ONE TRANSPLANT PROGRAM ALLOCATE SOME ORGANS BY HOSPITAL NOT BY PATIENT THE UNITED NETWORK FOR ORGAN SHARING WHICH RUNS THE NATION'S ORGANSHARING SYSTEM UNDER FEDERAL CONTRACT IS ADOPTING THE SINGLE WAITINGLIST POLICY FOR THE NATION'S 69 ORGAN BANKS BEGINNING TOMORROW BUT UNOS POLICIES ARE VOLUNTARY THE BILL WOULD FORCE TRANSPLANT CENTERS TO COMPLY WE WANT TO MAKE SURE THAT WITHIN ANY AREA PATIENTS ALL HAVE THE SAME REASONABLE FAIR CHANCE MR HASH SAYS THE LEGISLATION SPONSORED BY REP HENRY WAXMAN D CALIF WHO HEADS THE SUBCOMMITTEE ALSO WOULD REQUIRE THE SECRETARY OF HEALTH AND HUMAN SERVICES TO CONDUCT A ONEYEAR STUDY ON THE FEASIBILITY FAIRNESS AND ENFORCEABILITY OF A SINGLE NATIONAL WAITING LIST CURRENTLY UNOS ALLOCATES ORGANS LOCALLY FIRST RESULTING IN DISPARITIES IN WAITING TIMES AND ALLOWING CRITICALLY ILL PATIENTS AT LARGE CENTERS TO DIE WHILE ORGANS ARE USED FOR RELATIVELY HEALTHIER PATIENTS AT SMALL PROGRAMS A FRONTPAGE ARTICLE IN THE WALL STREET JOURNAL APRIL 1 CHRONICLED ORGAN WAITINGLIST PROBLEMS REP WAXMAN'S BILL ALSO WOULD FORCE UNOS TO INCREASE REPRESENTATION OF TRANSPLANT RECIPIENTS AND DONOR FAMILY MEMBERS TO AT LEAST ONETHIRD OF ITS BOARD UNOS HAS BEEN CRITICIZED FOR RELYING TOO HEAVILY ON TRANSPLANT PROFESSIONALS WHO HAVE A FINANCIAL STAKE IN ITS POLICIES UNOS OPPOSES THE IDEA AS TOO RESTRICTIVE THE MOVES COME AMID INCREASING PUBLIC CONCERN OVER THE COSTS AND FAIRNESS OF TRANSPLANTATION A RECENT STUDY FROM MAYO CLINIC HEALTHCARE RESEARCHER ROGER EVANS QUESTIONED THE WIDE VARIATION IN THE PRICES HOSPITALS AND ORGAN BANKS CHARGE FOR PROCUREMENT FOR EXAMPLE THEN THERE'S THE THORNY QUESTION OF WHETHER PROMINENT PEOPLE SUCH AS PENNSYLVANIA GOV ROBERT CASEY GET PREFERENTIAL TREATMENT GOV CASEY LEAPFROGGED THE REST OF THE WAITING LIST AT THE UNIVERSITY OF PITTSBURGH MEDICAL CENTER BECAUSE HE NEEDED TWO ORGANS A HEART AND A LIVER THE INCIDENT CAUSED A PUBLIC STIR AND RAISED FURTHER QUESTIONS OVER WHY A 61YEAROLD WAS OFFERED AN EXPERIMENTAL PROCEDURE USING ORGANS THAT MIGHT HAVE SAVED TWO OTHER PATIENTS AND WHY HE RECEIVED THE EXPENSIVE OPTION WHEN OTHER PATIENTS ARE ROUTINELY TURNED AWAY FROM TRANSPLANT CENTERS BECAUSE THEIR HEARTS ARE TOO SICK TO SURVIVE A LIVER TRANSPLANT THE ANSWER TO THAT IS HE'S THE GOVERNOR SAYS DR CAPLAN TRANSPLANT PIONEER THOMAS STARZL OF THE UNIVERSITY OF PITTSBURGH SAYS THAT UNLIKE OTHER LIVER TRANSPLANT CANDIDATES TURNED AWAY BECAUSE OF HEART TROUBLES GOV CASEY'S GENETIC LIVER DISEASE WAS THE CAUSE OF HIS CARDIAC PROBLEMS THUS CURABLE WITH TRANSPLANT THE ONLY DIFFERENCE IS THAT IF THE GOVERNOR HAD BEEN JOE JONES HE MIGHT NOT HAVE BEEN ACCEPTABLE BECAUSE HE COULDN'T PASS THE WALLET BIOPSY LIKE STATEINSURED GOV CASEY DID DR STARZL SAYS I AM CERTAIN THAT GOV CASEY WAS AT FAR GREATER RISK OF DYING THAN ANY OTHER PATIENT ON OUR LIST AT THAT TIME HE ADDS STILL MICHAEL EVANISKO A FOUNDER OF THE PARTNERSHIP FOR ORGAN DONATION SAYS THE ISSUES DOGGING TRANSPLANTATION COST AND FAIRNESS ARE COMBINING TO UNDERMINE ORGAN DONATION THIS IS ALL PART OF PASSING THE SMELL TEST FOR THE PUBLIC HE SAYS WE ARE ASKING GRIEFSTRICKEN PEOPLE TO MAKE TREMENDOUS GIFTS OF CHARITY 9306300102 930630 BILL AIMS TO DERAIL ACCOUNTING BOARD'S OPTIONSRULE REVIEW WASHINGTON OPPONENTS OF A HOTLY CONTESTED CHANGE IN AN ACCOUNTING RULE THAT COVERS EXECUTIVE STOCK OPTIONS MOVED IN CONGRESS TO BLOCK IT THE FINANCIAL ACCOUNTING STANDARDS BOARD THE CHIEF RULEMAKING BODY FOR ACCOUNTANTS IS SCHEDULED TO VOTE TODAY ON A REQUIREMENT THAT COMPANIES DEDUCT THE VALUE OF EXECUTIVE STOCK OPTIONS FROM EARNINGS STARTING IN 1997 LEGISLATION INTRODUCED YESTERDAY IN THE SENATE WOULD BAR THE REQUIREMENT THE BILL WHOSE PROSPECTS AREN'T CLEAR IS SPONSORED BY DEMOCRATS JOSEPH LIEBERMAN OF CONNECTICUT AND DIANNE FEINSTEIN AND BARBARA BOXER BOTH OF CALIFORNIA AND REPUBLICAN CONNIE MACK OF FLORIDA THE BULK OF THE LEGISLATION PROPOSES THE CREATION OF A NEW EMPLOYEE STOCK OPTION THAT WOULD ALLOW TAXFREE EXERCISE OF OPTIONS AND WOULD CUT IN HALF THE CAPITALGAINS TAX ON SALE OF THE STOCK AS LONG AS IT IS HELD FOR TWO YEARS OR MORE IN RETURN COMPANIES OFFERING THE OPTION WOULD FORGO THEIR OWN OPTIONSRELATED TAX DEDUCTIONS COMPANIES COULD CONTINUE TO OFFER DEDUCTIBLE STOCK OPTIONS THE SAME BILL WOULD DIRECT THE SECURITIES AND EXCHANGE COMMISSION TO IGNORE ANY FASB RULE REQUIRING THE DEDUCTION OF STOCKOPTION VALUES FROM EARNINGS FASB CHAIRMAN DENNIS BERESFORD SAID HIS BOARD WILL PROCEED AND WOULD PREFER IF THE GOVERNMENT DOESN'T GET INVOLVED IN SETTING ACCOUNTING STANDARDS BECAUSE IT ISN'T IN THE PUBLIC'S BEST INTEREST SEPARATELY TWO DEMOCRATIC CONGRESSMEN INTRODUCED A BILL CALLING FOR THE MERGER OF THE SEC AND THE COMMODITY FUTURES TRADING COMMISSION THE BILL OFFERED BY REPS DAN GLICKMAN OF KANSAS AND RON WYDEN OF OREGON WOULD CREATE THE MARKETS AND TRADING COMMISSION SIMILAR LEGISLATION HAS BEEN FLOATED AND SUNK IN PREVIOUS SESSIONS OF CONGRESS MEANWHILE A BILL AUTHORIZING THE SEC'S BUDGET FOR THE NEXT TWO FISCAL YEARS HAS BEEN SENT TO THE FULL HOUSE THE LEGISLATION HOWEVER CALLS FOR THE SEC TO BECOME SELFFINANCING IN 1996 9306300101 930630 BUSINESS BRIEF EDISTO RESOURCES CORP DALLAS OIL AND GAS CONCERN EMERGES FROM CHAPTER 11 EDISTO RESOURCES CORP SAID IT EMERGED FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS UNDER ITS REORGANIZATION PLAN THE DALLAS OIL AND GAS EXPLORER AND DEVELOPER SAID IT WAS RESTRUCTURING 226 MILLION OF LOANS TO CHEMICAL BANK CONSOLIDATING ITS DOMESTIC OIL AND GAS OPERATIONS INTO A NEW UNIT AND IMPLEMENTING A 1FOR20 REVERSE SPLIT OF ITS COMMON STOCK HOLDERS OF STOCK PRIOR TO THE REORGANIZATION PLAN'S IMPLEMENTATION WILL RETAIN 10 OF THE SHARES AFTER THE SPLIT AND RECEIVE THREEYEAR WARRANTS TO PURCHASE EDISTO'S COMMON STOCK AT 974 FOR EACH POSTSPLIT SHARE IF THE WARRANTS ARE FULLY EXERCISED HOLDERS OF EDISTO STOCK COULD END UP OWNING ABOUT 22 OF EDISTO'S COMMON SHARES OUTSTANDING EDISTO SAID IT WILL HAVE AS MANY AS 12853008 COMMON SHARES OUTSTANDING AFTER THE SPLIT AND A MAXIMUM OF 1977386 WARRANTS THE NEW COMMON STOCK AND WARRANTS BEGIN TRADING ON THE AMERICAN STOCK EXCHANGE TODAY 9306300100 930630 TECHNOLOGY BRIEF DIGITAL EQUIPMENT CORP LOWERPRICED EXPANDED PC PRODUCT LINE IS PLANNED DIGITAL EQUIPMENT CORP SAID IT PLANS TO BRING OUT A NEW LINE OF LOWERPRICED PERSONAL COMPUTERS AND TO ENLARGE ITS PC DISTRIBUTION CHANNELS ENRICO PESATORI CHIEF OF THE MAYNARD MASS COMPUTER MAKER'S PC UNIT SAID THAT HE EXPECTS A FAIRLY DRAMATIC INCREASE IN INDIRECT DISTRIBUTION CURRENTLY MOST OF THE COMPANY'S PCS ARE SOLD DIRECTLY TO BUYERS OF DIGITAL'S LARGER COMPUTER SYSTEMS OR THROUGH THE COMPANY'S TOLLFREE DIRECTSALES LINE ADDRESSING A BEAR STEARNS & CO CONFERENCE MR PESATORI ALSO REPEATED FORECASTS THAT PC SALES WILL GROW TO JUST SHORT OF 1 BILLION IN THE FISCAL YEAR ENDING JULY 2 YEAREARLIER PC SALES WERE 500 MILLION THE COMPANY REPORTED TOTAL REVENUE OF 139 BILLION FOR THE PERIOD HE SAID HE EXPECTS THE UNIT TO GROW AT MUCH THE SAME PACE IN THE COMING FISCAL YEAR AND THAT DIGITAL PLANS TO EMPHASIZE PORTABLES AND NETWORK SERVERS TO ROUND OUT ITS PRODUCT LINE 9306300099 930630 BUSINESS BRIEF HALSEY DRUG CO GENERIC DRUG MAKER REACHES CONSENT DECREE WITH FDA HALSEY DRUG CO SAID IT ENTERED INTO A CONSENT DECREE WITH THE FOOD AND DRUG ADMINISTRATION TO RESOLVE CERTAIN ISSUES INVOLVING RECORDKEEPING AND MANUFACTURING AT ITS BROOKLYN NY PLANT THE GENERIC DRUG MAKER SAID THE DECREE CALLS FOR IT TO ADHERE TO THE FDA'S GOOD MANUFACTURING PROCEDURES THE FDA AND THE DEPARTMENT OF JUSTICE BEGAN INVESTIGATING HALSEY OPERATIONS LAST YEAR LAST WEEK HALSEY AGREED TO PAY A 25 MILLION FINE OVER FIVE YEARS TO SETTLE THE JUSTICE DEPARTMENT INQUIRY THE COMPANY ALSO AGREED TO PLEAD GUILTY TO FIVE COUNTS RELATING TO THE ADDITION OF AN INACTIVE INGREDIENT INTO ONE DRUG PRODUCT HALSEY SAID IT EXPECTS TO RESUME SHIPMENT OF ITS CORE PRODUCTS MADE AT THE BROOKLYN FACILITY WHICH REPRESENT MORE THAN 50 OF THE COMPANY'S REVENUE IN THE NEXT FEW DAYS IN 1992 THE COMPANY HAD 499 MILLION IN SALES THE BROOKLYN COMPANY SAID IT AGREED TO SUSPEND SHIPMENTS OF SOME OTHER PRODUCTS MADE AT THE BROOKLYN PLANT PENDING RESOLUTION OF OTHER ISSUES WITH THE FDA THE AFFECTED PRODUCTS REPRESENT ABOUT 15 OF THE COMPANY'S REVENUE 9306300098 930630 BUSINESS BRIEF NORTHERN TELECOM LTD SUITS FILED BY SHAREHOLDERS SEEK STATUS AS CLASS ACTION NORTHERN TELECOM LTD WHICH SAW ITS STOCK PLUNGE 22 MONDAY FACES AT LEAST TWO LAWSUITS FILED BY DISGRUNTLED SHAREHOLDERS THE SUITS FILED IN FEDERAL COURT IN NEW YORK SEEK STATUS AS CLASS ACTION ON BEHALF OF ALL INVESTORS WHO BOUGHT SHARES OF THE TORONTO TELECOMMUNICATIONSEQUIPMENT MAKER BETWEEN THE BEGINNING OF THIS YEAR AND JUNE 26 THE SUITS ALLEGE THAT NORTHERN TELECOM AND SOME OF ITS OFFICERS INCLUDING PAUL G STERN THE COMPANY'S CHAIRMAN WHO RESIGNED FRIDAY AND JEAN C MONTY THE PRESIDENT AND CHIEF EXECUTIVE MISLED INVESTORS ABOUT FINANCIAL PROSPECTS THE COMPANY ISSUED ROSY PREDICTIONS FOR 1993 AS RECENTLY AS JANUARY BUT FRIDAY ANNOUNCED THAT IT WOULD RECORD A LOSS FOR THE SECOND QUARTER OF THIS YEAR A SPOKESMAN FOR NORTHERN TELCOM WHICH IS MAJORITYOWNED BY MONTREAL'S BCE INC DECLINED TO COMMENT ON THE SUITS NORTHERN TELECOM STOCK CLOSED AT 2725 DOWN 1625 OR 56 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY 9306300097 930630 BUSINESS BRIEF HILLHAVEN CORP PROFIT CLIMBS ON SALES RISE IN FISCAL FOURTH QUARTER CITING HIGHER NURSING CENTER AND RETIREMENT HOUSING REVENUE HILLHAVEN CORP REPORTED INCREASED FISCAL FOURTHQUARTER EARNINGS THE OPERATOR OF NURSING HOMES RETIREMENT HOMES AND PHARMACIES IN TACOMA WASH SAID NET INCOME WAS 114 MILLION OR NINE CENTS A SHARE IN ITS QUARTER ENDED MAY 31 A YEAR EARLIER NET WAS 52 MILLION OR FOUR CENTS A SHARE REVENUE ROSE 7 TO 315 MILLION FROM 295 MILLION IN THE YEAR NET WAS 391 MILLION OR 32 CENTS A SHARE ON REVENUE OF 125 BILLION IN THE PREVIOUS YEAR THE COMPANY POSTED A LOSS OF 788 MILLION OR 77 CENTS A SHARE AS A RESULT OF A 90 MILLION CHARGE RELATED TO THE DISPOSITION OF UNDERPERFORMING NURSING CENTERS PRIOR YEAR REVENUE WAS 125 BILLION 9306300096 930630 FOREIGN EXCHANGE DOLLAR ENDS MOSTLY LOWER ON CONCERNS ABOUT STATUS OF US ECONOMIC RECOVERY BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A SPATE OF WEAKERTHANEXPECTED US ECONOMIC DATA TUESDAY REVIVED MARKET CONCERNS ABOUT THE STATE OF THE US RECOVERY AND CAUSED THE DOLLAR TO FINISH MOSTLY LOWER THE US CURRENCY HOWEVER DID GAIN MODERATELY ON THE YEN AS THE ARREST OF A JAPANESE MAYOR ON BRIBERY CHARGES PROMPTED WORRIES THAT THE RULING LIBERAL DEMOCRATIC PARTY OR LDP MAY BE DRAWN INTO YET ANOTHER CORRUPTION SCANDAL THAT DEPRESSED THE YEN AGAINST THE DOLLAR OUTWEIGHING THE IMPACT OF THE US ECONOMIC STATISTICS DEALERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16885 MARKS DOWN FROM 16960 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10650 YEN UP FROM 10625 YEN STERLING WAS TRADING AT 15125 UP FROM 14965 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10680 YEN AND AT 16887 MARKS PLAYERS SAID THE DOLLAR REMAINS RELATIVELY WELLSUPPORTED AND ISN'T LIKELY TO MOVE SHARPLY DURING THE NEXT FEW DAYS PARTICIPANTS WILL BE RELUCTANT THEY ADDED TO TAKE AGGRESSIVE NEW POSITIONS AHEAD OF A MEETING OF SENIOR BUNDESBANK OFFICIALS TOMORROW AND US JUNE EMPLOYMENT DATA FRIDAY UNEXPECTED DECLINES IN US JUNE CONSUMER CONFIDENCE AND MAY NEWHOME SALES WERE THE MAIN FORCE BEHIND DOLLAR SALES TUESDAY DEALERS SAID THE US CONFERENCE BOARD'S JUNE INDEX OF CONSUMER CONFIDENCE STOOD AT 589 DOWN FROM 619 IN MAY THE MARKET HAD EXPECTED THE INDEX TO RISE TO 625 FOR JUNE US NEWHOME SALES PLUMMETED 21 IN MAY FROM APRIL TO A SEASONALLY ADJUSTED ANNUAL RATE OF 571000 THE LARGEST MONTHLY DROP IN MORE THAN 13 YEARS THE COMMERCE DEPARTMENT SAID A SURVEY OF ECONOMISTS BY THE DOW JONES CAPITAL MARKETS REPORT HAD PREDICTED AN 8 DECLINE IN MAY HOME SALES THE DATA DON'T GIVE ANYONE REASON TO GET EXCITED ABOUT THE US ECONOMY SAID CYRUS WHITNEY CHIEF TRADER AT COMMERZBANK MARKET PARTICIPANTS HAVE SAID PERSISTENTLY IN RECENT MONTHS THAT SUSTAINED INDICATIONS OF A US ECONOMIC RECOVERY ARE A PREREQUISITE FOR A STRONGER DOLLAR PLAYERS WERE PARTICULARLY DISAPPOINTED BY THE DROP IN CONSUMER CONFIDENCE SAID LYNN TIERNEY VICE PRESIDENT AT SHAWMUT BANK OF BOSTON BECAUSE THAT'S WHAT MAKES AN ECONOMY REBOUND THE DOLLAR WHICH HAD BEEN RISING AGAINST THE YEN AND HOLDING ESSENTIALLY STEADY AGAINST THE MARK WAS SOLD AFTER THE DATA WERE RELEASED PLAYERS SAID US MAY LEADING INDICATORS WHICH DROPPED 03 FROM APRIL AND WHICH ALSO WERE REPORTED YESTERDAY CONTRIBUTED MARGINALLY TO THE DOLLAR'S DECLINE THEY SAID PARTICIPANTS HAD ANTICIPATED THE INDEX WOULD DECLINE 01 FROM APRIL IN ADDITION TO THE US DATA RUMORS THAT GERMANY'S CENTRAL BANK AGAIN WAS SELLING DOLLARS AROUND THE US CURRENCY'S INTRADAY HIGH JUST ABOVE 17000 MARKS YESTERDAY PUT FURTHER PRESSURE ON THE DOLLAR DEALERS SAID THE CURRENCY'S STRONG ADVANCE AGAINST THE YEN IN ASIA TUESDAY WAS PROMPTED BY DEVELOPMENTS IN JAPAN'S POLITICAL SHAKEUP SAID RICH SHIMOKAWA FOREIGNEXCHANGE MANAGER AT SUMITOMO BANK LTD PROSECUTORS ARRESTED THE MAYOR OF SENDAI A CITY NORTH OF TOKYO FOR ALLEGEDLY ACCEPTING A TOTAL OF 100 MILLION YEN 943000 IN BRIBES FROM FOUR MAJOR CONSTRUCTION COMPANIES TOP OFFICIALS FROM THE COMPANIES ALSO WERE ARRESTED 9306300095 930630 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB ROSS PEROT HAS IT WRONG THAT GIANT SUCKING SOUND HE TALKS ABOUT HAS NOTHING TO DO WITH JOBS FLOWING TO MEXICO IT'S THE SOUND OF REPUBLICAN POLITICIANS TRYING TO ATTACH THEMSELVES TO HIS BANDWAGON IT'S BEING DONE EVEN BY REPUBLICANS WHO ACTUALLY DISAGREE WITH HIM ON FUNDAMENTAL ISSUES BY OBFUSCATING THEIR REAL POSITIONS ON THOSE BASIC ISSUES THEY ARE CONFUSING BOTH THEMSELVES AND VOTERS THE TREND IS A GROWING SOURCE OF TENSION WITHIN THE REPUBLICAN PARTY WHERE OPERATIVES ARE STARTING TO WARN THAT THE DANCE WITH ROSS IS A DANGEROUS DALLIANCE FOR THEIR PARTY AT A TIME WHEN REPUBLICANS COULD BE CARVING OUT THEIR OWN IDENTITY AS FOES OF CLINTONOMICS SOME WARN THEY RUN THE RISK INSTEAD OF BECOMING METOO PEROT BOOSTERS WHO COULD BE EITHER SWALLOWED UP OR BLINDSIDED BY HIM DOWN THE ROAD THIS GUY IS VOLATILE WARNS GOP CONSULTANT NEIL NEWHOUSE NOBODY KNOWS WHERE HE'S GOING TO BE TWO YEARS FOUR YEARS FROM NOW I THINK THERE'S A DANGER IN THAT THE LATEST EXAMPLE OF THE TREND IS KAY BAILEY HUTCHISON THE NEW REPUBLICAN SENATOR FROM TEXAS WHEN MR PEROT SHOWED UP AT THE CAPITOL LAST WEEK WITH TRUCKLOADS OF PETITIONS CALLING FOR CUTTING GOVERNMENT SPENDING AND REFORMING THE POLITICAL SYSTEM SEN HUTCHISON WAS THERE WITH HIM WHAT'S MORE SHE DISCLOSED THAT SHE IS A PROUD MEMBER OF MR PEROT'S UNITED WE STAND AMERICA ORGANIZATION BUT ON WHAT EXACTLY ARE SEN HUTCHISON AND MR PEROT STANDING UNITED IS IT ON MR PEROT'S ECONOMIC PLAN WHICH CALLS FOR NET TAX INCREASES OF SOME 320 BILLION OVER THE NEXT FIVE YEARS MS HUTCHISON JUST WON A SPECIAL ELECTION BY RUNNING AN ARDENT NONEWTAXES CAMPAIGN IS SHE STANDING WITH MR PEROT ON THE NORTH AMERICAN FREE TRADE AGREEMENT AN ISSUE OF IMMENSE IMPORTANCE IN HER HOME STATE MR PEROT IS THE TREATY'S MOST VISIBLE AND VOCAL FOE SEN HUTCHISON IS A TREATY BOOSTER WHO PROCLAIMED IN ONE CAMPAIGN PRESS RELEASE THAT IT IS A GIVEN THAT THE BIG CITIES OF TEXAS HOUSTON DALLAS AND SAN ANTONIO WILL BENEFIT FROM NAFTA AND WHO PROPOSED A PLAN TO HELP TEXAS BORDER AREAS BENEFIT SIMILARLY DO SEN HUTCHISON AND MR PEROT THINK THE SAME WAY ON DEFENSE SPENDING SEN HUTCHISON WANTS TO STICK WITH THE DEFENSE BUDGET PROPOSED BY THE BUSH ADMINISTRATION MR PEROT PROPOSES CUTTING 40 BILLION FROM THAT PLAN OVER THE NEXT FIVE YEARS REPUBLICAN POLITICIANS ARE MOVING DOWN THIS PATH BECAUSE THEY FIGURE THEY NEED THE HELP OF PEROTISTAS TO SWING HOUSE AND SENATE ELECTIONS THEIR WAY NEXT YEAR SEN HUTCHISON IS A SMART HARDWORKING POLITICIAN WHO JUST WON A BIG VICTORY WITH THE BACKING OF THE PEROT ORGANIZATION SHE OBVIOUSLY CALCULATES THAT IT'S POSSIBLE TO ASSOCIATE WITH MR PEROT'S CUTTHESPENDING RHETORIC WITHOUT HAVING TO BUY INTO MORE CONTROVERSIAL PARTS OF HIS MESSAGE SHE DISAGREES WITH HIM ON A NUMBER OF THINGS CONCEDES DAVID BECKWITH SEN HUTCHISON'S SPOKESMAN BUT HE ASSERTS SHE APPRECIATES MR PEROT AND HIS ORGANIZATION BECAUSE HE HAS SUCCEEDED IN BRINGING TO THE FOREFRONT TWO MAJOR ISSUES THE NEED FOR REFORM IN WASHINGTON BASIC REFORM OF THE SYSTEM AND THE NEED TO REDUCE THE DEFICIT HE BROUGHT THEM FRONT AND CENTER NOW ON HOW PRECISELY YOU DO THAT SHE MAY PART COMPANY WITH HIM BUT THERE COULD BE A BITTER PRICE TO BE PAID AS SEN HUTCHISON MAY BE ABOUT TO DISCOVER HAVING BEEN RIDICULED AND PILLORIED AS IRRESPONSIBLE FREESPENDERS SOME MEMBERS OF CONGRESS ARE SUDDENLY FINDING THAT THEY'RE MORE INCLINED TO VOTE AGAINST TWO PARTICULAR BIGTICKET SPENDING ITEMS THE SPACE STATION AND THE SUPERCOLLIDER THE STATE WHERE BOTH PROJECTS ARE MOST IMPORTANT ECONOMICALLY IS OF COURSE TEXAS HOME OF ROSS PEROT AND KAY BAILEY HUTCHISON SEN HUTCHISON IS HARDLY ALONE AMONG REPUBLICANS IN SEEKING TO CURRY FAVOR WITH MR PEROT FRESHMAN HOUSE REPUBLICANS INVITED HIM TO THE CAPITOL TO SPEAK TO THEM LATER REPUBLICANS HAD HIM IN TO TALK ON NAFTA OTHER REPUBLICANS INCLUDING REP NEWT GINGRICH BRAG ABOUT SENDING THEIR MEMBERSHIP FEES TO UNITED WE STAND AMERICA THERE'S NO DOUBT THAT IT'S FUN TO JOIN MR PEROT IN ATTACKING THE DEMOCRATS NOW IN CHARGE OF THE SYSTEM EVERYONE LOVES TO HATE YET MR PEROT BECAME A POLITICAL PHENOMENON LAST YEAR BECAUSE VOTERS SAW HIM NOT ONLY AS ONE WHO COULD DESCRIBE HARD PROBLEMS BUT ALSO AS ONE WHO HAD THE GUTS TO PRESCRIBE HARD SOLUTIONS IF MR PEROT MAINTAINS HIS INDEPENDENT STANDING HE HAS THE POTENTIAL TO CAUSE JUST AS MUCH TROUBLE FOR REPUBLICAN CANDIDATES AS FOR DEMOCRATIC ONES SEE GEORGE BUSH FOR DETAILS IF HE DECIDES TO FORMALLY ENTER THE REPUBLICAN PARTY AND RUN FOR PRESIDENT FROM THERE IN 1996 HE COULD WREAK HAVOC ON THE GOP ESTABLISHMENT THOSE NOW BUILDING UP MR PEROT MAY THEN BE TRYING TO TEAR HIM DOWN 9306300094 930630 LAW LEGAL BEAT TRIAL OVER SUNKEN HOARD OF GOLD PITS THE FINDERS AGAINST INSURERS BY JONATHAN MOSES AND AMY STEVENS STAFF REPORTERS OF THE WALL STREET JOURNAL HOW MUCH SHOULD A COURT REWARD DERRINGDO THIS ANCIENT LEGAL ISSUE AS OLD AS DETERMINING THE BOUNTY FOR AN ADVENTURER WHO RESCUES HOSTAGES FROM PIRATES WILL TAKE ON A DEFINITIVELY MODERN TOUCH AT A TRIAL OVER HOW TO DIVVY UP A GOLDEN TREASURE FROM A SHIP THAT SANK IN THE ATLANTIC OCEAN 136 YEARS AGO THE SS CENTRAL AMERICA WAS CARRYING CALIFORNIA GOLD VALUED AT 12 MILLION AT THE TIME TO BANKS IN NEW YORK WHEN IT SANK DURING A STORM 160 MILES OFF THE COAST OF THE CAROLINAS THE SINKING MADE NATIONAL NEWS AND IS BELIEVED TO HAVE HELPED SPARK THE WALL STREET PANIC OF 1857 THE GOLD RETRIEVED BY EXPLORERS IN 1988 IS BELIEVED TO BE ONE OF THE LARGEST SUNKEN TREASURES IN US HISTORY THE GOLD HAS BEEN VALUED AT AS MUCH AS 1 BILLION BUT INDIVIDUALS FAMILIAR WITH THE CASE SAY IT IS LIKELY TO FETCH NO MORE THAN HALF THAT BECAUSE IT DEPENDS IN PART ON HOW WELL OLD COINS SELL RATHER THAN THE WEIGHT OF THE GOLD AT THE TRIAL WHICH BEGAN YESTERDAY IN NORFOLK VA US DISTRICT JUDGE RICHARD B KELLAM WILL DECIDE HOW MUCH OF THIS BOOTY SHOULD GO TO THE EXPLORERS WHO FOUND THE SHIP AND RAISED ITS GOLD FROM 8000 FEET BENEATH THE SEA THE EXPLORERS' INTERESTS WILL BE WEIGHED AGAINST THOSE OF AT LEAST EIGHT INSURERS THAT PAID OFF POLICIES ON THE GOLD AFTER THE SHIP SANK THE CLAIMS OF FOUR OTHER INSURERS THAT WENT OUT OF BUSINESS BEFORE THE GOLD COULD BE RECOVERED ARE BEING REPRESENTED BY NEW YORK STATE'S SUPERINTENDENT OF INSURANCE THE INSURERS ALREADY HAVE AGREED HOW THEY WILL SPLIT UP THEIR EXPECTED SHARE OF THE RECOVERY THE LARGEST PORTIONS WOULD GO TO LONDONBASED COMMERCIAL UNION PLC'S INDEMNITY MARINE ASSURANCE CO WITH 20 AND THE SALVAGE ASSOCIATION REPRESENTING UNDERWRITERS OF LLOYD'S OF LONDON WITH 14 THE LARGEST SHARE GOING TO A US INSURER WOULD BE 123 FOR ATLANTIC MUTUAL INSURANCE CO NEW YORK JUDGE KELLAM WILL HEAR TESTIMONY ON THE RISKS BOTH FINANCIAL AND PHYSICAL THAT THE EXPLORERS A LIMITED PARTNERSHIP CALLED COLUMBUSAMERICA DISCOVERY GROUP INC TOOK IN SEEKING THE FORTUNE EVIDENCE SUCH AS THE MONEY INVESTED BY THE PARTNERS TO BACK THE SEARCH AND THE EXTENT TO WHICH THE GROUP SHOWED INNOVATION IN BUILDING A SPECIAL SUBMARINE NEMO TO GET THE GOLD ARE ALL FACTORS THAT WILL BE CONSIDERED UNDER ADMIRALTY LAW'S TRADITIONAL SEVENPART TEST GOVERNING SALVAGE CASES THERE ARE A LOT OF NEW ISSUES HERE IN HOW JUDGE KELLAM REWARDS ALL THE HIGH TECHNOLOGY AND INNOVATION THAT WAS USED IN PERFORMING THE SALVAGE SAID JAMES T SHIRLEY AN ATTORNEY AT NEW YORK LAW FIRM HAIGHT GARDNER POOR & HAVENS WHO SPECIALIZES IN SALVAGE ISSUES BUT ISN'T INVOLVED IN THE CASE THE TRIAL ALSO HAS PUT THE INSURERS IN THE UNSEEMLY SITUATION OF ATTEMPTING TO PLAY DOWN THE WORK OF THE RESCUERS WITHOUT WHOM THERE WOULD BE NO GOLD TO SQUABBLE OVER COLUMBUSAMERICA DESERVES NO MORE THAN 35 OF THE FORTUNE SAID MARILYN LYTLE AN ATTORNEY AT LAW FIRM BIGHAM ENGLAR JONES & HOUSTON IN NEW YORK WHO REPRESENTS THE INSURERS THE EXPLORERS RISKED LITTLE IN TERMS OF PHYSICAL SAFETY MS LYTLE SAID IT WAS A KIND OF ROUTINE KIND OF DEAL THEY HAD INVESTORS COME OUT ON THE SHIP THEY COULD GO INTO PORT IF THERE WAS BAD WEATHER AND THEY ONLY WORKED IN SUMMER THE EXPLORERS' ATTORNEY RICHARD T ROBOL SAID COLUMBUSAMERICA BASED IN COLUMBUS OHIO DESERVES ALL THE GOLD INITIALLY JUDGE KELLAM AGREED AND DISMISSED THE EFFORTS OF THE INSURERS AND OTHERS TO LAY CLAIM TO THE TREASURE IN A RULING THAT WAS LATER OVERTURNED ON APPEAL JUDGE KELLAM SAID THE TREASURE HAD BEEN ABANDONED AND THAT THE LAW OF FINDS WHICH ESSENTIALLY MEANS FINDERS KEEPERS SHOULD APPLY THE FEDERAL APPEALS COURT THAT HEARD THE CASE SENT IT BACK TO JUDGE KELLAM AND INSTRUCTED HIM TO APPLY THE SALVAGE PRINCIPLES FROM ADMIRALTY LAW THE JUDGE ALSO WILL HEAR A CHALLENGE FROM A RIVAL EXPLORER GROUP MAINTAINING THAT IT SHOULD GET A SHARE OF THE GOLD THE GROUP FORMED BY THE NOWDECEASED HEIR TO THE MILLER BREWING FORTUNE AND A TEXAS OIL MAN ARGUES THAT COLUMBUSAMERICA UNFAIRLY USED ITS EARLIER WORK IN SEARCHING FOR THE SHIP THE COLUMBUSAMERICA TEAM DISPUTES THAT CLAIM COLUMBIA UNIVERSITY OF NEW YORK HAD MADE A SIMILAR CLAIM BUT WITHDREW ON THE FIRST DAY OF TRIAL JUDGES IN TWO SEPARATE CALIFORNIA CASES HAVE RULED THAT MEN CAN ESTABLISH PATERNITY RIGHTS TO CHILDREN TO WHOM THEY HAVE A CLOSE EMOTIONAL BOND BUT NO BIOLOGICAL OR ADOPTIVE LINK THE RULINGS SIGNAL COURTS' INCREASING WILLINGNESS TO CONSIDER CARE GIVING AND NOT JUST GENETICS IN PARENTHOOD DETERMINATION AS NONSTANDARD FAMILY ARRANGEMENTS BECOME MORE COMMON EACH DECISION CAME OVER THE OBJECTIONS OF THE CHILD'S NATURAL MOTHER AND THE NATURAL FATHER THESE ARE SIGNIFICANT RULINGS COMING FROM TWO DIFFERENT COURTS IN TWO DIFFERENT PARTS OF THE STATE SAID GLEN SCHWARTZ THE LOS ANGELES LAWYER WHO REPRESENTED BOTH VICTORIOUS NONBIOLOGICAL FATHERS MR SCHWARTZ WAS THE SUBJECT OF A PAGE ONE STORY IN THE WALL STREET JOURNAL THIS MONTH CALIFORNIA APPEARS TO BE LEADING THE NATION IN NONBIOLOGICALFATHERS CASES FAMILY LAWYERS SAID NOTING THAT A HANDFUL OF OTHER COURTS IN THE STATE HAVE ISSUED SIMILAR DECISIONS IN THE PAST YEAR IN A CASE DECIDED MONDAY AFTER A CLOSEDDOOR TRIAL IN LOS ANGELES COUNTY SUPERIOR COURT KEVIN THOMAS WAS AWARDED PATERNITY RIGHTS TO FIVEYEAROLD COURTNEY THOMAS THE DAUGHTER OF A FORMER WOMAN FRIEND OF HIS MR THOMAS WHO IS GAY CONTENDED HE AND COURTNEY'S MOTHER BOTH PARTICIPATED IN RAISING COURTNEY HE ARGUED THAT THE CHILD BONDED WITH THEM EQUALLY BEFORE COURTNEY'S MOTHER STOPPED ALLOWING THE GIRL TO SEE HIM LAST YEAR JUDGE MARTHA GOLDIN AWARDED MR THOMAS SUBSTANTIAL CUSTODY RIGHTS COURTNEY HAS NEVER KNOWN HER NATURAL FATHER AS A PARENT I CERTAINLY DON'T FEEL ANY DIFFERENT THAN BEFORE MR THOMAS SAID AFTER THE DECISION BUT IT'S WONDERFUL TO HAVE THE CONFIRMATION OF THE COURT ARNOLD FREEDLAND A LOS ANGELES LAWYER FOR COURTNEY'S MOTHER DIDN'T RETURN PHONE CALLS SEEKING COMMENT HE PREVIOUSLY CLAIMED MR THOMAS WAS A STRANGER WHO WAS ONLY ENTITLED TO THE RIGHTS COURTNEY'S MOTHER WANTED HIM TO HAVE AND THAT COURTNEY WAS TOO YOUNG TO COMPREHEND THE MEANING OF DADDY WHICH SHE CALLS MR THOMAS IN A SIMILAR CASE LAST WEEK A SAN MATEO COUNTY SUPERIOR COURT JUDGE AWARDED PATERNITY RIGHTS TO A PALO ALTO MAN WHO LEARNED UPON BREAKING UP WITH HIS GIRLFRIEND THAT THE FOURYEAROLD BOY THEY HAD RAISED TOGETHER WASN'T HIS BIOLOGICAL SON BLOOD TESTS PROVED THAT THE FATHER WAS MOST LIKELY THE WOMAN'S HUSBAND FROM WHOM SHE HAD NEVER DIVORCED AND WITH WHOM SHE HAS SINCE RECONCILED THE SAN MATEO CASE WAS FILED UNDER SEAL AND THE PARTIES ASKED THAT THEIR NAMES NOT BE PRINTED THE COUPLE'S LAWYER ROBERT AMOS OF SANTA CLARA DECLINED TO DISCUSS THE CASE HE SAID HIS CLIENTS PLANNED TO APPEAL BUT THERE ARE OTHER OPTIONS AVAILABLE TO US FIRST HE DECLINED TO BE MORE SPECIFIC WHO'S NEWS JOHN M SAYRE A FORMER ASSISTANT SECRETARY OF THE INTERIOR DEPARTMENT RETURNED TO DENVER LAW FIRM DAVIS GRAHAM & STUBBS HIS PRACTICE WILL FOCUS ON WATER AND ENVIRONMENTAL ISSUES AS WELL AS GOVERNMENTAL AFFAIRS 9306300093 930630 MUTUAL FUNDS MONEY FLOW TO FUNDS SLOWS BUT REMAINS STRONG BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL SMALL INVESTORS ARE BECOMING A BIT MORE CAUTIOUS AND PACKING LESS CASH INTO STOCK MUTUAL FUNDS WHERE INFLOWS APPEAR HEADED TOWARD A SECOND MONTHLY DECLINE SEVERAL MUTUALFUND COMPANIES SAY THAT IN JUNE THEY ARE SEEING STRONG BUT LOWER STOCK MUTUALFUND INFLOWS COMPARED WITH MAY AND MAY'S STOCKFUND INFLOW OF 91 BILLION REPORTED BY THE INVESTMENT COMPANY INSTITUTE THE MUTUALFUND TRADE ORGANIZATION WAS DOWN FROM A RECORD 116 BILLION FLOW INTO MUTUAL FUNDS IN APRIL WHEN INVESTORS RUSHED TO MEET THE DEADLINE FOR INDIVIDUAL RETIREMENT ACCOUNTS SOME SMALL INVESTORS HAVE DECIDED TO TAKE PROFITS WHEN THE MARKET IS HITTING RECORD LEVELS SAYS MICHAEL HINES A SENIOR VICE PRESIDENT AT BOSTON MUTUALFUND GIANT FIDELITY INVESTMENTS WHILE THE INFLOWS IN MAY SLOWED DOWN PORTFOLIO MANAGERS PUT MORE OF THEIR CASH HOLDINGS INTO STOCKS STOCK FUNDS HELD 92 OF THEIR PORTFOLIOS IN CASH AT THE END OF MAY DOWN FROM 103 IN APRIL STOCK FUNDS BOUGHT 137 BILLION OF STOCK IN MAY MORE THAN THE 91 BILLION THEY RECEIVED FROM INVESTORS IN THE MONTH INVESTORS HAVE STUFFED NEARLY 51 BILLION INTO STOCK FUNDS THROUGH MAY THIS YEAR THAT AMOUNT EXCEEDS THE TOTAL THAT STOCK FUNDS RECEIVED IN EVERY YEAR EXCEPT 1992 WHEN THEY GATHERED 77 BILLION WALL STREET SITS ON A WALL OF WORRY SAYS AVI NACHMANY AN ANALYST AT STRATEGIC INSIGHT A NEW YORK CITY MUTUALFUND RESEARCH COMPANY BUT THE CONTINUED STRONG INFLOWS SHOW THAT MAIN STREET INVESTORS CONTINUE TO HAVE ENORMOUS CONFIDENCE IN THE FINANCIAL MARKETS HEAVY CASH FLOWS INTO STOCK FUNDS PROVIDE A SOURCE OF BUYING POWER THAT CAN DRIVE STOCK PRICES HIGHER FUND EXECUTIVES SAY THAT INVESTORS CONTINUED TO FAVOR CONSERVATIVE HIGHDIVIDENDPAYING STOCK FUNDS IN JUNE INTERNATIONAL FUNDS WHICH HAVE OUTPERFORMED MANY DOMESTIC FUNDS ALSO GOT BIG INFLOWS IN JUNE BALANCED FUNDS INVESTING IN BOTH STOCKS AND BONDS AND WHICH SUSTAIN LESSSEVERE SWINGS IN PRICE REMAINED HOT SELLERS AT MANY GROUPS BOND FUNDS GOT 101 BILLION IN CASH FROM INVESTORS IN MAY THAT MADE MAY THE FIRST MONTH SINCE FEBRUARY THAT BOND FUNDS RECEIVED MORE CASH INFLOWS THAN STOCK FUNDS JUNKBOND FUNDS MUNICIPALBOND FUNDS AND SHORTTERM BOND FUNDS ALL BROUGHT IN CASH IN JUNE ALTHOUGH SOME FUND GROUPS REPORTED OUTFLOWS FROM LONGTERM TREASURY BOND FUNDS THE DATA ON CASH FLOWS INCLUDE ALL NEW SALES OF FUNDS MINUS WITHDRAWALS BY DEPARTING SHAREHOLDERS THE NET RESULT OF INVESTORS SWITCHING FUNDS WITHIN THE SAME GROUP ALSO IS COUNTED REINVESTED DIVIDENDS ARE EXCLUDED FUND GROUPS SUCH AS FIDELITY INVESTMENTS VANGUARD GROUP AMERICAN EXPRESS CO'S SHEARSON LEHMAN BROTHERS T ROWE PRICE ASSOCIATES KEMPER CORP'S KEMPER FINANCIAL SERVICES AND INVESCO FUNDS GROUP SAY THEY ARE SEEING LOWER INFLOWS INTO STOCK FUNDS IN JUNE IT'S THE SUMMER DOLDRUMS SAID JOHN BUTLER CHAIRMAN OF INVESCO A FEW FUND GROUPS INCLUDING JANUS FUNDS OPPENHEIMER CAPITAL LP'S OPPENHEIMER MANAGEMENT CORP PRUDENTIAL INSURANCE CO OF AMERICA'S PRUDENTIAL MUTUAL FUNDS AND METROPOLITAN LIFE INSURANCE CO'S STATE STREET RESEARCH & MANAGEMENT CO REPORTED FLAT OR HIGHER STOCK FUND INFLOWS MUTUAL FUNDS INVESTING OVERSEAS INCLUDING THOSE THAT ALSO MAKE INVESTMENTS IN THE US ATTRACTED A HEFTY 750 MILLION A WEEK IN JUNE ACCORDING TO AMG DATA SERVICES AN ARCATA CALIF CONCERN THAT TRACKS MUTUALFUND CASH FLOWS MANY FOREIGN STOCK MARKETS HAVE OUTPERFORMED THE US MARKET THIS YEAR ATTRACTING INVESTOR INTEREST MOREOVER THE HIGH LEVEL OF THE US STOCK MARKET HAS ENCOURAGED SOME INVESTORS TO PUT MONEY OVERSEAS WHERE SOME STOCKS CURRENTLY SELL AT LOWER PRICES RELATIVE TO EARNINGS OR BOOK VALUE GOLD AND NATURAL RESOURCE FUNDS HOT PERFORMERS THIS YEAR ACTUALLY SAW A BIG OUTFLOW OF CASH IN MIDJUNE FOLLOWING BIG INFLOWS IN MAY ACCORDING TO AMG DATA FOR THE ENTIRE MONTH OF JUNE THE FUNDS HAD ONLY A SLIGHT INFLOW JUNKBOND FUNDS INVESTING IN THE SPECULATIVE BUT HIGHYIELDING DEBT OF COMPANIES RATED BELOW INVESTMENT GRADE CONTINUE TO ATTRACT A LOT OF MONEY ACCORDING TO FUND EXECUTIVES INVESTORS HAVE FLOCKED TO THESE FUNDS AS THE YIELDS ON INVESTMENTGRADE BONDS HAVE SUNK TO LOW LEVELS INVESTORS ALSO SOUGHT HIGHER YIELDS IN FUNDS MIXING GOVERNMENT BONDS WITH JUNK AND FOREIGN BONDS SAID STEPHEN GIBSON A MANAGING DIRECTOR AT PUTNAM INVESTMENTS BIG FLOWS INTO SHORTTERM BOND FUNDS SUGGEST THAT SOME INVESTORS EXPECT INTEREST RATES TO REVERSE THEIR LONG DECLINE OF RECENT YEARS A SURVEY AT SHEARSON LEHMAN BROTHERS RECENTLY CONCLUDED THAT 80 OF OUR CLIENTS THINK INTEREST RATES ARE GOING UP SAID ROBERT LEO DIRECTOR OF MUTUALFUND SALES AT SHEARSON LAST YEAR HE SAID ONLY 42 OF SHEARSON'S CLIENTS THOUGHT THAT INTEREST RATES WOULD BE HIGHER IN 12 MONTHS TAXFREE MUNICIPAL BOND FUNDS GOT MORE CASH AT SOME FUND GROUPS IN JUNE SALES OF TAXFREE FUNDS PICK UP EVERY TIME YOU HAVE MORE TALK ABOUT THE CLINTON TAX PACKAGE SAID TILGHMAN PITTS AN EXECUTIVE VICE PRESIDENT AT OPPENHEIMER INVESTORS MAY YET PUT MORE MONEY INTO STOCK FUNDS IN THE MONTHS AHEAD ACCORDING TO A SURVEY OF INVESTORS CONDUCTED BY THE UNIVERSITY OF MICHIGAN ON BEHALF OF FIDELITY SOME 32 OF THE INVESTORS SURVEYED INTENDED TO BUY STOCK FUNDS DURING THE NEXT THREE MONTHS NET OF THOSE PLANNING TO SELL THAT LEVEL WAS UP FROM 24 INTENDING TO BUY FUNDS THE PRIOR MONTH CASH MAY NOT BE KING BUT IT APPEARS TO BE GETTING A MORSEL MORE RESPECT FROM INVESTORS THESE DAYS ONEFIFTH OF INVESTORS POLLED BY PAINEWEBBER GROUP INC SAY THEY WILL PLOW PART OF THEIR PORTFOLIO INTO MONEYMARKET FUNDS DURING THE NEXT FEW MONTHS UP FROM 15 IN MARCH AND THE HIGHEST LEVEL SINCE LATE LAST YEAR AND 8 OF THOSE POLLED PLAN TO PUT MONEY INTO CERTIFICATES OF DEPOSIT DURING THAT TIME UP FROM 6 IN MARCH THE REASON PAINEWEBBER SAYS IS EXPECTATIONS OF HIGHER INTEREST RATES WHICH WOULD PROP UP THE PALTRY RETURNS OF CASH EQUIVALENTS NOBODY EXPECTS A STAMPEDE INTO CASH ANY TIME SOON THAT'S BECAUSE THE YIELDS ON MOST MONEY FUNDS AND THREEMONTH CDS REMAIN BELOW 275 THESE RETURNS BADLY LAG BEHIND THOSE IN THE STOCK MARKET AND BARELY KEEP PACE WITH INFLATION THIS ISN'T TO SAY THAT PEOPLE SUDDENLY ARE MOVING ALL THEIR MONEY INTO CASH BUT THE SLIGHT POP INTO CASH IS ANOTHER INDICATION OF UNCERTAINTY SAYS SHAILENDRA GHORPADE WHO DIRECTS PAINEWEBBER'S MONTHLY SURVEY OF A SAMPLE OF 5000 OF ITS CUSTOMERS IT'S A MOMENT OF PAUSE RATHER THAN A TURN INTO CASH HE SAYS INVESTORS' RAVENOUS APPETITE FOR STOCK AND MUNICIPALBOND MUTUAL FUNDS APPEARS TO HAVE COOLED A BIT PAINEWEBBER SAYS 56 OF THOSE SURVEYED SAY THEY WILL BUY STOCK FUNDS DURING THE NEXT FEW MONTHS DOWN FROM 60 IN FEBRUARY AND 42 OF THOSE POLLED PLAN TO BUY TAXFREE MUNICIPAL BOND FUNDS DOWN FROM 50 IN MARCH MORE THAN 70 OF INVESTORS POLLED GAVE PRESIDENT CLINTON A GRADE OF D OR F ON HIS PERFORMANCE ON ECONOMIC ISSUES SO FAR NEARLY TWOTHIRDS OF THE PAINEWEBBER INVESTORS SAID THE PRESIDENT IS LETTING NONECONOMIC ISSUES INTERFERE WITH HIS DELIVERY OF AN ECONOMIC PACKAGE INVESTORS ARE MOST ATTRACTED TO THE TELECOMMUNICATIONS UTILITIES AND COMPUTER INDUSTRIES THE SURVEY SAYS AMONG SECTORS LEAST FAVORED DEFENSE AND AEROSPACE MACHINERY AND TRANSPORTATION MICHAEL SICONOLFI CONTRIBUTED TO THIS ARTICLE 9306300092 930630 NOTICE TO READERS EXCHANGES BANKS GOVERNMENT OFFICES AND MOST BUSINESSES IN CANADA WILL BE CLOSED TOMORROW FOR CANADA DAY THERE WON'T BE ANY MAIL DELIVERY 9306300091 930630 AMERICAN ELECTRIC SETS INTERIM AGREEMENT WITH MINE WORKERS COLUMBUS OHIO AMERICAN ELECTRIC POWER CO BECAME THE FOURTH US COAL PRODUCER TO SIGN AN INTERIM CONTRACT AGREEMENT WITH THE UNITED MINE WORKERS WHO ARE IN THEIR EIGHTH WEEK OF SELECTIVE STRIKING AEP ONE OF THE LARGEST US ELECTRIC UTILITY HOLDING CORPORATIONS AND THE NATION'S 28THLARGEST COAL PRODUCER SAID THE COMPANY WOULD LEAVE THE BITUMINOUS COAL OPERATORS' ASSOCIATION WHOSE MEMBER COMPANIES THE UNION IS TARGETING OVER JOB SECURITY DISPUTES THE BCOA INDICATED IT MIGHT FILE UNFAIRLABORPRACTICE CHARGES AGAINST AEP FOR ITS WITHDRAWAL THE UNION/AEP AGREEMENT AFFECTS 1320 WORKERS IN OHIO ILLINOIS AND WEST VIRGINIA AND PROTECTS AEP FROM ANY STRIKE BY THE UNION OTHER COMPANIES THAT ALSO HAVE LEFT THE BCOA TO SIGN SEPARATE AGREEMENTS WITH THE UNION INCLUDE AMAX INC CLI CORP AND FREEMAN ENERGY CORP FREEMAN UNITED COAL CORP SO FAR 14000 MINERS ARE ON STRIKE IN SIX STATES 9306300090 930630 TECHNOLOGY TWO GROUPS SEEK TO HALT NIH TRIALS OF GROWTH HORMONE WASHINGTON AP TWO ADVOCACY GROUPS ASKED A FEDERAL JUDGE YESTERDAY TO HALT A PAIR OF GOVERNMENT STUDIES TESTING A SYNTHETIC GROWTH HORMONE ON SHORT CHILDREN WHO DO NOT HAVE A CLASSIC DEFICIENCY OF THE NATURAL HORMONE THE FOUNDATION FOR ECONOMIC TRENDS HEADED BY SELFSTYLED MEDICAL WATCHDOG JEREMY RIFKIN AND THE PHYSICIANS COMMITTEE FOR RESPONSIBLE MEDICINE CHARGED THAT A RENEWAL OF THE TESTS BY THE NATIONAL INSTITUTES OF HEALTH VIOLATES PROHIBITIONS AGAINST EXPOSING CHILDREN TO GREATER THAN MINIMAL RISKS THE NIH SUSPENDED THE STUDIES A YEAR AGO BECAUSE OF CHALLENGES BY MR RIFKIN AND THE TWO GROUPS LAST WEEK OFFICIALS ANNOUNCED A RESUMPTION OF THE STUDIES AFTER TWO OUTSIDE REVIEW COMMITTEES CONCLUDED THAT THEY DID NOT EXPOSE CHILDREN TO ABOVE MINIMAL RISKS THE NIH STUDIES EVENTUALLY TO INVOLVE 80 CHILDREN ARE AIMED AT DETERMINING THE EFFECTIVENESS OF THE HORMONE AND ANY SIDE EFFECTS SO FAR FEWER THAN 40 CHILDREN BETWEEN THE AGES OF 5 AND 15 HAVE BEGUN TREATMENTS AS PART OF THE STUDY THE SYNTHETIC HORMONE HUMATROPE IS MANUFACTURED BY ELI LILLY & CO AND WAS APPROVED FOR USE BY THE FOOD AND DRUG ADMINISTRATION IN 1987 FOR PITUITARY DWARFS HOWEVER PHYSICIANS HAVE BEEN USING IT OFF LABEL TO TREAT OTHER CHILDREN WITH UNEXPLAINED SHORTNESS AND GIRLS WITH TURNER SYNDROME A GENETIC ORDER THAT PRODUCES SHORTNESS AND OTHER PHYSICAL PROBLEMS 9306300089 930607 THE GUINIER MESS PRESIDENT CLINTON'S FINEST HOUR BY SETH LIPSKY PRESIDENT CLINTON'S DECISION TO WITHDRAW HIS CIVIL RIGHTS NOMINEE LANI GUINIER IS EARNING HIM LITTLE BUT RECRIMINATIONS AND RIDICULE THE LEADERSHIP OF THE CIVIL RIGHTS MOVEMENT SPENT THE WEEKEND THREATENING WOE THE BLACK CAUCUS IN CONGRESS IS PLOTTING REVENGE ON THE PRESIDENT'S LEGISLATIVE AGENDA FEMINIST GROUPS ARE SUGGESTING THAT SOMEHOW THIS WOULDN'T HAVE HAPPENED HAD THE NOMINEE NOT BEEN A WOMAN THE NEWSPAPERMEN ARE LAUGHING BUMBLIN' BILL BLARED THE NEW YORK DAILY NEWS THE REPUBLICANS ARE SHARPENING THEIR KNIVES FOR THE NEXT BATTLE AND THE NATIONAL PUNDITRY IS IN A LATHER THE PRESIDENT'S DECISION ON PROF GUINIER THE CONSENSUS SAYS IS JUST THE LATEST DISASTER IN A PRESIDENCY WELL ON THE ROAD TO RUIN THERE IS ANOTHER POSSIBLE INTERPRETATION OF ALL THIS HOWEVER NAMELY THAT THE LANI GUINIER AFFAIR WAS MR CLINTON'S FINEST HOUR THIS MIGHT NOT ADD UP TO MUCH THE CYNICS WILL SAY GIVEN THE SLOW START TO HIS PRESIDENCY BUT MR CLINTON COULD HAVE TAKEN ANY NUMBER OF COURSES OUT OF THE TRAP HE WAS IN HE COULD HAVE PUT THE GLOSS ON MS GUINIER'S VIEWS HE COULD HAVE ASSAILED HER CRITICS HE COULD HAVE GRANTED HER PLEA FOR A CHANCE TO MAKE HER CASE TO THE JUDICIARY COMMITTEE THIS WOULD HAVE LEFT THE DIRTY WORK NIFTILY TO SENS BIDEN LEAHY HATCH AND SIMPSON OR THE PRESIDENT COULD HAVE EXPLAINED THE WITHDRAWAL OF HER NOMINATION BY ASSERTING THAT HE HAD MORE SERIOUS FIGHTS BREWING IN THE SENATE AS THE SUSPENSE BUILT THURSDAY EVENING THE TELEPUNDITS WERE PREDICTING JUST ABOUT EVERY POSSIBILITY ON THE LIST EXCEPT THE COURSE THAT MR CLINTON ACTUALLY CHOSE AFTER WHAT MUST HAVE BEEN AN EXCRUCIATING MEETING WITH A WOMAN WHO WAS A CLOSE FRIEND THE PRESIDENT WALKED IN FRONT OF A LIVE TELEVISION AUDIENCE AND ADMITTED THAT WHEN HE ORIGINALLY SENT MS GUINIER'S NAME UP TO THE HILL HE HADN'T READ HER WRITINGS SINCE THEN HE SAID HE'D HAD HIS FIRST SUBSTANTIVE TALK WITH MS GUINIER AND HAD ACTUALLY READ HER LAW REVIEW ARTICLES HER WRITINGS HE DISCOVERED DO IN FACT LEND THEMSELVES TO INTERPRETATIONS THAT DO NOT REPRESENT THE VIEWS THAT I EXPRESSED ON CIVIL RIGHTS DURING MY CAMPAIGN AND VIEWS THAT I HOLD VERY DEARLY THAT WAS A STUNNING DECLARATION FROM A MAN WHO HAS BEEN DERIDED AS HOLDING NO VIEWS DEEPLY MR CLINTON HAD SPOKEN DURING THE CAMPAIGN OF HIS COMMITMENT NOT TO EQUALITY OF RESULTS BUT EQUALITY OF OPPORTUNITY TO SEE HIM STICK TO THAT PRINCIPLE UNDER GREAT PRESSURE WAS TO THOSE OF US WHO HAVE ASSERTED THAT FOR ALL THE BOBBING AND WEAVING MR CLINTON HAS DONE THE TRAJECTORY OF HIS PRIMARY CAMPAIGN HAD A SUSTAINED AND LOGICAL COURSE IT IS TO LEAD THE DEMOCRATIC PARTY OUT OF THE WILDERNESS INTO WHICH IT WANDERED DURING THE MCGOVERN YEARS AND TO TRY TO REESTABLISH ITS CAPACITY TO GOVERN AMERICA SO WHEN MR CLINTON WAS ASKED THURSDAY EVENING HOW MUCH OF A ROLE WAS PLAYED IN ALL OF THIS BY HIS MUCHTOUTED MOVE TO THE POLITICAL CENTER MANY WERE AS PLEASED AS THEY WERE SURPRISED TO HEAR HIM DECLARE I WOULD SAY THIS IS ABOUT MY CENTER NOT ABOUT THE POLITICAL CENTER MR CLINTON'S DECLARATION GAVE THE LIE TO ONE OF THE MOST DISINGENUOUS ASSERTIONS BY PROF GUINIER'S DEFENDERS THE CHARGE THAT THE EFFORT TO DERAIL HER NOMINATION WAS MERELY THE WORK OF THE RADICAL RIGHT AND OF REPUBLICANS LIKE SEN HATCH IN FACT THE FIRST NEWSSTORY WARNING OF MS GUINIER'S RADICAL WRITINGS REPORTED CONCERNS ABOUT THE NOMINEE IN A DIFFERENT QUARTER THE JEWISH COMMUNITY PARTICULARLY ONE OF ITS MOST DECIDEDLY AND HONORABLY LIBERAL INSTITUTIONS THE AMERICAN JEWISH CONGRESS THE DIRECTOR OF ITS COMMISSION FOR LAW AND SOCIAL ACTION MARC STERN HIMSELF A DISTINGUISHED CIVIL RIGHTS LAWYER HAD BEEN GOING OVER MS GUINIER'S WRITINGS A WEEK BEFORE MS GUINIER WAS NOMINATED HE WAS QUOTED AS WARNING THAT SHE WANTED TO ASSURE THAT GROUPS PROTECTED UNDER THE VOTING RIGHTS ACTUALLY WIN ELECTIONS THERE'S NO GUARANTEE THAT YOU WIN IN OUR SYSTEM HE WAS QUOTED AS SAYING ON APRIL 23 IN THE JEWISH WEEKLY THE FORWARD IT IS NO COINCIDENCE THAT THESE CONCERNS SPRANG FROM ONE OF THE JEWISH DEFENSE ORGANIZATIONS JEWS HAVE BEEN FIGHTING AGAINST GHETTO SCHEMES AND PROPORTIONALITY SYSTEMS FOR CENTURIES MILLIONS CAME TO AMERICA PRECISELY TO ESCAPE SUCH POLITICAL IMPRISONMENT SO MUCH THE BETTER THAT THE CONCERNS OF LIBERAL JEWS TURNED OUT TO BE SHARED IN THE CASE OF MS GUINIER BY CRITICS ON THE CONSERVATIVE SIDE MOST FORMIDABLY CLINT BOLICK OF THE INSTITUTE FOR JUSTICE IN WASHINGTON WHOSE ARGUMENT OF THIS CASE WAS MARKED BY ITS HIGHMINDEDNESS INDEED THE CAMPAIGN AGAINST MS GUINIER HAD LITTLE IN COMMON WITH THE FIGHT WAGED AGAINST JUDGE BORK AND JUSTICE THOMAS NOT ONE WORD NOT ONE SYLLABLE OF THE FIGHT OVER MS GUINIER CAME IN THE FORM OF AN ADHOMINUM ATTACK ON THE NOMINEE NOT ON HER PERSON HER ETHICS HER LIFESTYLE HER PRIVATE LIFE OR HER NANNY THIS BATTLE WAS ENTIRELY OVER THE SUBSTANCE OF IDEAS IT CONTINUES A DEBATE AS OLD AS OUR REPUBLIC FOR ALL HER BRILLIANCE WHICH SEEMS UNDENIABLE MS GUINIER HAS ARGUED HERSELF FAR OVER TO ONE SIDE OF THIS DEBATE WHAT WE LEARNED IN THIS AFFAIR IS THAT MR CLINTON IS A PRESIDENT WHO CAN CONFRONT HIS CRONIES AND WHEN PRESSED HARD ENOUGH CAN MAKE A DECISION ON THE PRINCIPLES IT PROVIDES AT LEAST A HOPE THAT THE MAN FROM ARKANSAS MAY YET DELIVER TO THE DETRACTORS OF HIS YOUNG PRESIDENCY SOME SURPRISES MR LIPSKY A FORMER MEMBER OF THE EDITORIAL BOARD OF THE JOURNAL IS EDITOR OF THE FORWARD A JEWISH WEEKLY SEE RELATED LETTER LETTERS TO THE EDITOR BASIC LATIN WSJ JUNE 30 1993 9306070071 YY93 MM06 9306300088 930630 CORPORATE FOCUS AFTER INITIAL FUZZINESS AT&T CLEARS UP SIGNAL TO ASIA FIRM IMPROVES ITS RECEPTION IN LUCRATIVE MARKET BY TARGETING LOCAL NEEDS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AMERICAN TELEPHONE & TELEGRAPH CO IS LOOKING FOR A SECOND CHANCE IN THE POTENTIALLY HUGE ASIAN MARKET AND THIS TIME ITS RIVALS IN THE TELECOMMUNICATIONSEQUIPMENT BUSINESS FEAR IT MIGHT HAVE A WINNING STRATEGY JUST A DECADE AGO THE US GIANT HAD VIRTUALLY NO NETWORKEQUIPMENT BUSINESS IN ASIA CONSTRAINED FIRST BY THE US GOVERNMENT AND THEN BY ITS OWN HUBRIS AND DISORGANIZATION AT&T COULDN'T SEEM TO FIGURE OUT IF MUCH LESS HOW IT WANTED TO EXPAND SINCE FEBRUARY HOWEVER AT&T HAS SWEPT THROUGH THE REGION LIKE A WHIRLWIND IT HAS SOLD MORE THAN 460 MILLION OF TELECOM EQUIPMENT ESTABLISHED A MANUFACTURING JOINT VENTURE AIMED AT GIVING IT A FOOTHOLD IN INDIA AND SIGNED A MAJOR AGREEMENT FOR SERVICES AND EQUIPMENT WITH CHINA A MARKET THAT AT&T OFFICIALS BELIEVE COULD ONE DAY SURPASS THE US IN CONTRIBUTIONS TO THE COMPANY'S REVENUE OVER THE NEXT COUPLE OF YEARS CHINA WILL BE THE HOTTEST MARKET IN THE WORLD SAYS RAU CHANG AT&T VICE PRESIDENT FOR BUSINESS DEVELOPMENT IN ASIA INDIA WITH ITS ECONOMIC REFORMS IN PLACE WILL SIMILARLY TAKE OFF WE THINK WE HAVE THE TECHNOLOGY THE CAPABILITIES AND ASSETS FOR DEVELOPING THESE MARKETS THAT NO OTHER COMPETITOR CAN MATCH THOSE RIVALS PARTICULARLY JAPANESE SUPPLIERS ARE EYEING AT&T'S RECENT MOVES NERVOUSLY AT&T HAS BEEN PARTICULARLY AGGRESSIVE RECENTLY AND WE'RE PAYING CLOSE ATTENTION SAYS RYOICHI SUGIOKA A TELECOM EXECUTIVE AT FUJITSU LTD WHEREAS AT&T USED TO TRY TO FORCE EQUIPMENT BUILT WITH US STANDARDS ON THE REST OF THE WORLD MR SUGIOKA SAYS IT HAS NOW STARTED TO CONCENTRATE ON THE SPECIFIC NEEDS AND STANDARDS OF ITS LOCAL MARKETS WHEN THE GIANT BEGINS TO PAY ATTENTION TO DETAIL LIKE THAT WE HAVE TO BE CONCERNED ALTHOUGH AT&T DERIVES MORE THAN HALF OF ITS 65 BILLION IN ANNUAL REVENUE FROM SELLING TELECOMMUNICATIONS SERVICES ANALYSTS SAY THE COMPANY'S REAL OPPORTUNITY IN ASIA IS TO BOOST SALES OF NETWORK EQUIPMENT SUCH AS SWITCHES THE COMPUTERS THAT ROUTE DATA TRAFFIC ACROSS A NETWORK AND OTHER TRANSMISSION EQUIPMENT IN THE PACIFIC RIM AT&T COULD EASILY DOUBLE ITS OVERALL EQUIPMENT SALES SAYS JACK GRUBMAN A TELECOMMUNICATIONS ANALYST WITH PAINEWEBBER INC IN NEW YORK SO FAR ASIA STILL LOOMS SMALL IN AT&T'S OVERALL FINANCIAL PICTURE MR GRUBMAN ESTIMATES THE COMPANY'S ANNUAL SERVICE AND EQUIPMENT SALES IN THE REGION AT ABOUT 1 BILLION EACH WHICH TOGETHER AMOUNT TO ONLY ABOUT 3 TO 4 OF AT&T'S TOTAL REVENUE COMPANY OFFICIALS HOWEVER SAY THEY EXPECT SPECTACULAR GROWTH MR CHANG FOR INSTANCE SAYS REVENUE FROM THE ASIAPACIFIC REGION GREW BY 50 IN 1992 AT&T DOESN'T RELEASE EXACT FINANCIAL DATA FOR ITS OPERATIONS IN THE REGION AT&T'S RECENT SUCCESS AND ITS OPTIMISM IS PARTICULARLY STRIKING GIVEN THE DEPTHS TO WHICH IT HAD ONCE SUNK AT&T MESSED UP JUST ABOUT EVERYTHING POSSIBLE IN ASIA SAYS FRANCIS MCINERNEY A USBASED CONSULTANT AND COAUTHOR OF BEATING JAPAN A GUIDE FOR US COMPANIES FIGHTING JAPANESE COMPETITION THE COMPANY RECEIVED ONE OF ITS MOST HUMILIATING LESSONS IN 1985 WHEN NIPPON TELEGRAPH & TELEPHONE CORP JAPAN'S FORMER TELECOMMUNICATIONS MONOPOLY ALLOWED FOREIGN COMPANIES TO BID ON A CONTRACT FOR NETWORK SWITCHES FOR THE FIRST TIME AT&T HOWEVER INSISTED ON TRYING TO SELL NTT ITS FLAGSHIP CENTRAL OFFICE SWITCH A PRODUCT THAT COMPETED DIRECTLY WITH SIMILAR SWITCHES MADE BY LONGTERM NTT SUPPLIERS SUCH AS FUJITSU AND NEC CORP NTT DECIDED INSTEAD TO BUY 250 MILLION OF SMALLER SWITCHES FOR RURAL AREAS FROM NORTHERN TELECOM LTD WE WERE ARROGANT AND WE DIDN'T KNOW WHAT WE WERE DOING ONE AT&T OFFICIAL IN JAPAN NOW SAYS ANALYSTS SAY AT&T DESERVES CREDIT FOR LEARNING THE RIGHT LESSONS FROM ITS EARLY DISASTERS IN THE LATE 1980S THE COMPANY BEGAN TO PAY MORE ATTENTION TO WHAT ITS LOCAL CUSTOMERS NEEDED INSTEAD OF WHAT IT WANTED THEM TO BUY IT FOCUSED ITS ATTENTION ON MARKETS SUCH AS KOREA AND THEN SLOWLY BRANCHED OUT IT EVEN FINALLY SOLD 12 CENTRAL OFFICE SWITCHES TO NTT IN APRIL AT&T OFFICIALS SAY THEIR STRATEGY IS TO TAKE ADVANTAGE OF THEIR COMPANY'S STRENGTHS AS BOTH A SERVICE PROVIDER AND NETWORKEQUIPMENT SUPPLIER IN CHINA FOR INSTANCE AT&T PLANS TO HELP BUILD TELECOMMUNICATIONS NETWORKS WHILE OFFERING CHINESE ENGINEERS TRAINING IN HOW TO RUN THEM NORTHERN TELECOM BY CONTRAST WHICH SIGNED A SIMILAR COOPERATIVE AGREEMENT WITH CHINA THIS MONTH OFFERS MAINLY HARDWARE AND SOFTWARE SALES AND SUPPORT ANALYSTS SAY THE ASIAN MARKET ESPECIALLY IN CHINA AND INDIA IS PROBABLY LARGE ENOUGH TO ACCOMMODATE ALL THE FOREIGN SUPPLIERS WHO CARE TO SET UP SHOP HERE CHINA FOR INSTANCE PLANS TO ADD SOME 70 MILLION PHONE LINES BY THE YEAR 2000 AN EXPANSION THAT WOULD ENTAIL THE PURCHASE OF ABOUT 10 MILLION LINES OF SWITCHING EQUIPMENT EVERY YEAR AT AN ESTIMATED COST OF 12 BILLION A YEAR IT'S NOT A QUESTION OF TOO MANY SUPPLIERS BUT WHETHER THERE'LL BE ENOUGH TO KEEP UP WITH THE DEMAND SAYS PAINEWEBBER'S MR GRUBMAN INSTEAD AT&T'S POTENTIAL PROBLEMS MAY LIE WITHIN AT&T'S BIGGEST WEAKNESS IS ITSELF SAYS MR MCINERNEY IS IT CULTURALLY CAPABLE OF COMPETING IN ASIA IN THE LONG TERM CASE IN POINT CUSTOMER RELATIONS IN DESCRIBING THEIR BUSINESS IN ASIA AT&T OFFICIALS SEEM TO MENTION THEIR CUSTOMERS PRACTICALLY EVERY OTHER BREATH IN JAPAN THE CUSTOMER IS GOD SAYS EIICHI SHIMIZU A FORMER NTT OFFICIAL WHO NOW RUNS AT&T'S NETWORKEQUIPMENT OPERATION IN JAPAN AND GOD IS ALWAYS RIGHT SOME OF AT&T'S WOULDBE CUSTOMERS TELL A DIFFERENT STORY ONE TOP EXECUTIVE OF A MAJOR JAPANESE TELECOMMUNICATIONS FIRM WHO ASKED NOT TO BE IDENTIFIED SAID HE CONSIDERED BUYING NETWORK EQUIPMENT FROM AT&T BUT CHANGED HIS MIND BECAUSE HE FOUND EVEN ROUTINE DECISIONS BEING ROUTED THROUGH HEADQUARTERS BACK IN THE US I WANTED TO BUY AT&T PRODUCTS BUT THEY ARE SO DIFFICULT WITH THEIR CUSTOMERS HE SAYS THEY DON'T TRY TO BE ARROGANT BUT IN THE END THEY JUST BECOME VERY INEFFICIENT SIMILARLY AT&T HASN'T BEEN ABLE TO DECIDE IF ITS DECENTRALIZED BUSINESS STRATEGY IN WHICH THE COMPANY IS DIVIDED INTO SEMIAUTONOMOUS UNITS EACH EXPECTED TO TURN A PROFIT IS APPROPRIATE FOR ITS ASIAN MARKETS THE DEBATE IS CLEARLY A SENSITIVE ONE WITHIN AT&T WE DON'T LEVERAGE THE STRENGTH OF ONE BUSINESS UNIT TO SHORE UP ANOTHER'S WEAKNESSES SAYS SIMON KRIEGER DIRECTOR OF NETWORK SERVICES FOR ASIA STILL AT&T HAS TAKEN AN ENTIRELY DIFFERENT APPROACH IN CHINA WHERE THE COMPANY RECENTLY OPTED TO PUT ALL ITS BUSINESS UNIT OPERATIONS UNDER A SINGLE UNIFIED COMMAND THAT SORT OF ARRANGEMENT MAY BE THE WAVE OF THE FUTURE TOO AS WE LEARN TO DO MORE BUSINESS YOU'LL SEE MORE OF THIS KIND OF GEOGRAPHIC BUSINESS UNIT THAT PULLS BUSINESS IN A COUNTRY TOGETHER SAYS AT&T'S MR CHANG 9306300087 930630 PRUDENTIAL'S 300 MILLION OF NEW NOTES OPENS PATH FOR CAPITALHUNGRY INSURERS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL PRUDENTIAL INSURANCE CO OF AMERICA HAS QUIETLY ISSUED 300 MILLION OF A NEW FORM OF NOTES THAT OPENS THE DOOR FOR POLICYHOLDEROWNED INSURANCE COMPANIES TO RAISE CAPITAL FROM INSTITUTIONAL INVESTORS IN THE PAST POLICYHOLDEROWNED INSURERS KNOWN AS MUTUALS HAVE BEEN UNABLE TO RAISE CAPITAL FROM OUTSIDE SOURCES WITHOUT HAVING TO GO PUBLIC AS EQUITABLE COS DID LAST YEAR OR SUBMITTING TO TOUGH STANDARDS THAT SCARED AWAY INVESTORS BUT IN PRUDENTIAL'S CASE STATE REGULATORS IN NEW JERSEY EASED THE RULES CREATING A PRECEDENT FOR OTHER INSURERS ALREADY SEVERAL INSURERS HAVE CONTACTED INVESTMENT BANKS ASKING WHETHER OFFERINGS SIMILAR TO PRUDENTIAL'S MIGHT WORK FOR THEM INVESTMENT BANKERS SAY THE STRATEGY PROBABLY WOULDN'T WORK FOR SMALL OR WEAK INSURERS BUT COULD FOR COMPANIES THAT ARE LARGE AND FINANCIALLY STRONG THIS IDEA OPENS UP A LOT OF POSSIBILITIES SAID MARK PUCCIA AN ANALYST WITH STANDARD & POOR'S CORP MUTUALS HAVE HERETOFORE BEEN LARGELY EXCLUDED FROM CAPITAL MARKETS MUTUALS SUCH AS PRUDENTIAL DOMINATE THE LIFEINSURANCE INDUSTRY AND ALSO ACCOUNT FOR SOME OF THE LARGEST NAMES IN PROPERTY AND CASUALTY INSURANCE PRUDENTIAL'S OFFERING CONCLUDED IN LATE APRIL CAME AT A TIME WHEN INSURANCE COMPANIES ARE EAGER TO RAISE CAPITAL BEGINNING NEXT YEAR REGULATORS WILL BEGIN EVALUATING THE FINANCIAL STRENGTH OF LIFEINSURANCE COMPANIES BASED ON HOW MUCH CAPITAL THEY HAVE TO SUPPORT THE RISKINESS OF THEIR OPERATIONS AND INVESTMENTS A SIMILAR STANDARD IS CURRENTLY BEING CREATED FOR PROPERTY AND CASUALTY INSURERS ALTHOUGH THE VAST MAJORITY OF INSURERS HAVE SUFFICIENT CAPITAL TO PASS THEIR SOCALLED RISKBASED CAPITAL TESTS INSURERS ARE CONCERNED THAT CONSUMERS WILL USE THE RISKBASED CAPITAL MEASURES TO DECIDE FROM WHICH COMPANY TO BUY A POLICY INSURERS HAVE BEEN SCRAMBLING TO RAISE CAPITAL BEFORE THE FIGURES ARE MADE PUBLIC WHICH FOR LIFE INSURERS WILL BE EARLY NEXT YEAR THE PRUDENTIAL NOTES MATURE IN 10 YEARS CARRY A FIXED RATE OF 6875 AND ARE SUBORDINATE TO SENIOR DEBT AND POLICYHOLDER CLAIMS AMONG INVESTORS WERE PENSION FUNDS MUTUAL FUNDS AND OTHER INSURANCE COMPANIES FOR A COMPANY AS BIG AS PRUDENTIAL WITH 105 BILLION IN CAPITAL THE OFFERING WON'T MAKE A BIG DIFFERENCE IN ITS RISKBASED CAPITAL RATING INDEED IT RAISED THE MONEY NOT TO IMPROVE ITS SCORE BUT TO FINANCE POSTRETIREMENT BENEFITS FOR EMPLOYEES BUT THE PRECEDENT RAISES INTRIGUING POSSIBILITIES FOR OTHER INSURERS PROVIDING THEY CAN GET CLEARANCE FROM THEIR STATE INSURANCE REGULATOR PREVIOUSLY INSURERS HAVE BEEN ABLE TO ISSUE ONLY SOCALLED SURPLUS NOTES ON THE CONDITION THAT THE INSURANCE REGULATOR IN THEIR HOME STATE APPROVE EACH PAYMENT OF PRINCIPAL AND INTEREST THAT CONDITION WAS ENOUGH TO DETER INSTITUTIONAL INVESTORS BUT IN THE CASE OF THE PRUDENTIAL OFFERING NEW JERSEY OFFICIALS AGREED THAT PRUDENTIAL BASED IN NEWARK NJ COULD MAKE INTEREST AND PRINCIPAL PAYMENTS AS LONG AS THE COMPANY MET THE MINIMUM REQUIREMENTS FOR RISKBASED CAPITAL BY LINKING PAYMENTS TO A FORMULA RATHER THAN TO THE DECISION OF A REGULATOR INVESTORS FELT COMFORTABLE MAKING THE INVESTMENT SAID PRUDENTIAL TREASURER MARTIN PFINSGRAFF AS LONG AS WE PASS THE TEST WE CAN PAY HE SAID BECAUSE PRUDENTIAL THE COUNTRY'S LARGEST INSURER IS A STRONG AND WELLKNOWN COMPANY INVESTORS WERE WILLING TO TAKE THE CHANCE ON AN UNPROVEN INSTRUMENT SAID JONATHAN PLUTZIK AN INVESTMENT BANKER AT FIRST BOSTON WHO WORKED ON THE DEAL HE SAID SMALLER COMPANIES WOULD HAVE A HARDER TIME ATTRACTING INVESTOR INTEREST I'M NOT SURE A SMALLER COMPANY COULD BE SUCCESSFUL IN THAT REGARD HE SAID ADDING THAT HE DOESN'T EXPECT A FLOOD OF COMPANIES TO FOLLOW PRUDENTIAL'S LEAD ANYTIME SOON A MAJOR STICKING POINT IS WHETHER REGULATORS IN OTHER STATES WOULD BE WILLING TO MAKE THE CONCESSIONS MADE BY NEW JERSEY NEW JERSEY INSURANCE COMMISSIONER SAMUEL FORTUNATO BELIEVED THE APPROACH DOESN'T POSE ANY RISKS FOR POLICYHOLDERS WE'RE COMFORTABLE WITH IT SAID A SPOKESMAN BUT INSURANCE EXPERTS SAY THEY DOUBT OTHER INSURANCE DEPARTMENTS SUCH AS NEW YORK WOULD AGREE YESTERDAY NEW YORK OFFICIALS WERE UNAVAILABLE FOR COMMENT 9306300086 930630 METZENBAUM WON'T SEEK REELECTION TO THE SENATE WASHINGTON SEN HOWARD METZENBAUM A FORMER BUSINESS EXECUTIVE WHO BECAME THE SENATE'S MOST CANTANKEROUS LIBERAL SAID HE WON'T SEEK REELECTION NEXT YEAR THE 76YEAROLD OHIO DEMOCRAT HAD INDICATED FOR YEARS THAT HE PROBABLY WOULDN'T SEEK A FOURTH TERM BUT MORE RECENTLY SUGGESTED HE MIGHT CHANGE HIS MIND IN A FLOOR SPEECH YESTERDAY HOWEVER MR METZENBAUM SAID IT'S TIME TO TURN THE FINAL PAGES OF THIS CHAPTER IN MY LIFE SO HE COULD SPEND MORE TIME WITH HIS FAMILY MR METZENBAUM HAS GAINED RENOWN AND THE IRRITATION OF MANY COLLEAGUES WITH HIS FEISTY OPPOSITION TO WHAT HE CONSIDERS SPECIALINTEREST LEGISLATION HIS WILLINGNESS TO USE HIS POWER AND SENATE RULES TO TAKE ON CORPORATE TAX BREAKS AND EXPOSE THEIR SPONSORS HAS BUCKED THE CHAMBER'S CLUBBY TRADITION MY REGRETS ARE FEW MY MEMORIES ARE TREASURED MY HEALTH IS GREAT AND MY LOVE FOR THE BATTLE IS UNDIMINISHED MR METZENBAUM SAID I HAVE ACQUIRED SUFFICIENT WISDOM TO REALIZE THAT AIN'T A BAD WAY TO GO OUT BY STEPPING ASIDE THE FORMER PARKING LOT MAGNATE ASSURES A FIERCELY COMPETITIVE BATTLE TO SUCCEED HIM NEXT YEAR POSSIBLE DEMOCRATIC CANDIDATES INCLUDE MR METZENBAUM'S SONINLAW LAWYER JOEL HYATT REPS MARCY KAPTUR AND LOUIS STOKES AND FORMER OHIO GOV RICHARD CELESTE POTENTIAL REPUBLICAN CONTENDERS INCLUDE LT GOV MIKE DEWINE AND BERNADINE HEALY DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH DURING THE BUSH ADMINISTRATION 9306300085 930630 MARKETING & MEDIA PHILIPS ELECTRONICS CDMOVIE FORMAT RECEIVES SUPPORT BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL PHILIPS ELECTRONICS NV WON SUPPORT AMONG OTHER CONSUMER ELECTRONICS COMPANIES TO ESTABLISH A STANDARD FORMAT FOR BRINGING OUT MOVIES ON FIVEINCH COMPACT DISKS AT A CONFERENCE IN LONDON FOR COMPANIES THAT DEVELOP SOFTWARE FOR PHILIPS'S CDINTERACTIVE VIDEO AND AUDIO COMPACT DISK PLAYER A GROUP OF CONSUMER ELECTRONICS COMPANIES SAID THEY WOULD SUPPORT A STANDARD FOR BRINGING FEATURE MOVIES TO THE FIVEINCH CD FORMAT BESIDES PHILIPS OTHERS THAT PLAN TO PRODUCE THE FIVEINCH VIDEO COMPACT DISK PLAYERS INCLUDE GOLDSTAR CO SAMSUNG CO VICTOR COMPANY OF JAPAN LTD KNOWN AS JVC IN THE US AND COMMODORE INTERNATIONAL LTD THE SUPPORT OF OTHER HARDWARE MAKERS IS CRUCIAL FOR THE WIDESPREAD DISTRIBUTION OF CDBASED MOVIES CURRENTLY STUDIOS RELEASE THEIR MOVIES PRIMARILY ON VIDEOCASSETTES AND 12INCH LASERDISCS PHILIPS'S CDI MACHINE AND OTHERS LIKE IT ARE DESIGNED TO PLAY BOTH AUDIO AND VIDEO DISKS AND ALSO OFFER INTERACTIVE FEATURES THE AVAILABILITY OF MOVIES MIGHT BE A SHOT IN THE ARM FOR THE PHILIPS CDI MACHINES WHICH RETAILERS SAY HAVE SOLD SLOWLY AND HAVE NOT WON WIDE ACCEPTANCE THE PHILIPS CDI PLAYERS ARE CONSIDERED PRICEY AT 600 AND THE SOFTWARE AVAILABLE FOR THEM IS LARGELY MADE UP OF EDUCATIONAL PROGRAMS AND VIDEO GAMES WHILE SEVERAL HARDWARE MAKERS ARE EXPECTED TO BRING TO MARKET A CD VIDEO PLAYER IN THE 400 RANGE ONLY SAMSUNG SAID IT WOULD HAVE A DEFINITE MODEL AVAILABLE SOON SAMSUNG INTENDS TO INTRODUCE ITS FIRST VIDEO CD PLAYER TO THE KOREAN MARKET IN EARLY 1994 AT LESS THAN 650 PHILIPS HAS STRUCK A DEAL WITH PARAMOUNT COMMUNICATIONS INC TO PUT SUCH PARAMOUNT MOVIES AS TOP GUN ON FIVEINCH CD VIDEO DISKS THE MOVIES WHICH WILL BE AVAILABLE BY CHRISTMAS WILL PLAY ONLY ON CDI MACHINES EQUIPPED WITH A NEW 250 PLUGIN CARTRIDGE THAT ALLOWS CDI MACHINES TO PLAY FULLMOTION FULLSCREEN VIDEO INDUSTRY EXECUTIVES SPECULATE THAT WALT DISNEY CO WILL ALSO MAKE ITS FILMS AVAILABLE FOR CD VIDEO SYSTEMS DISNEY DIDN'T RESPOND FOR COMMENT ONE MAJOR DRAW BACK HOWEVER IS THE VIDEO CD FORMAT AS IT CURRENTLY EXISTS ALLOWS ONLY 74 MINUTES OF VHSQUALITY VIDEO MEANING THAT THE STANDARD MOVIE WOULD HAVE TO COME ON TWO DISKS ULTIMATELY THE INTERACTIVE VIDEO CD PLAYERS COULD BE USED BY STUDIOS TO OFFER MOVIE VIEWERS THE CHANCE TO CHOOSE AMONG VARIOUS ENDINGS OR PLOT TWISTS RECORDING COMPANIES ARE ALSO EXPECTED TO BE INTERESTED IN THE INTERACTIVE PLAYERS FOR PLAYING MUSIC VIDEOS THE PUSH FOR AGREEMENT ON A VIDEO FORMAT WAS LED BY CCUBE MICROSYSTEMS THE MILPITAS CALIF COMPANY THAT IS SUPPLYING THE CRUCIAL COMPUTER CHIP FOR THE DIGITAL DECOMPRESSION NEEDED TO FIT A MOVIE ON A FIVEINCH DISK CCUBE EXECUTIVES SAID THEIR MOVE WAS PROMPTED BY CONCERNS THAT VARIOUS INCOMPATIBLE INTERACTIVE SYSTEMS WOULD CAUSE CONFUSION IN THE MINDS OF CONSUMERS WE SEE THESE CRAZY FORMATS COMING AND SEE THE RISK THAT EACH WILL CREATE A DIFFERENT FULL MOTION FORMAT SAID ALEXANDRE BALKANSKI COFOUNDER OF CCUBE WE WANT TO ENSURE THAT A FULL MOTION CD WILL WORK ON ANY OF THOSE MACHINES 9306300084 930630 LAW JUSTICES SHIFTING VIEWS MARK 199293 HIGH COURT TERM RULINGS INCLUDE SOME VICTORIES FOR COMPANIES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BUSINESS WON SOME CRITICAL VICTORIES IN THE JUSTENDED SUPREME COURT TERM THE JUSTICES PROVIDED NEW SHIELDS FOR EMPLOYERS FACING JOBDISCRIMINATION LAWSUITS AND FOR ACCOUNTANTS TRYING TO FEND OFF CIVILRACKETEERING CHARGES THE COURT ALSO PROTECTED COMPANIES FROM WHAT COULD HAVE BEEN A MULTIBILLIONDOLLAR TAX HIT IN A CASE INVOLVING INTANGIBLE ASSETS SUCH AS CUSTOMER LISTS AND THE JUSTICES APPEARED TO CANCEL A SIGNAL THEY SENT A YEAR AGO THAT LOWER COURTS SHOULD BE MORE RECEPTIVE TO ANTITRUST SUITS EVEN IN INSTANCES WHEN THE HIGH COURT REJECTED AN AGGRESSIVE BUSINESS POSITION THERE TYPICALLY WAS AT LEAST SOME GLIMMER OF A SILVER LINING FOR CORPORATE INTERESTS THIS BAD NEWSGOOD NEWS THEME CONNECTED TWO MAJOR DECISIONS ANNOUNCED MONDAY THE LAST DAY OF THE 199293 TERM IN ONE CASE THE HIGH COURT JUNKED A RESTRICTIVE STANDARD FOR SCIENTIFIC TRIAL TESTIMONY THAT BUSINESS HAD PROMOTED DEFENDANTS IN PRODUCTLIABILITY AND MEDICALMALPRACTICE CASES COMPLAIN THAT PLAINTIFFS BEFUDDLE JURIES WITH PSEUDOSCIENCE THE COURT RESPONDED THAT THESE CONCERNS ARE SOMEWHAT EXAGGERATED AND THAT EXPERT WITNESSES DON'T NECESSARILY HAVE TO RELY ON TECHNIQUES GENERALLY ACCEPTED IN THE SCIENTIFIC COMMUNITY BUT THE JUSTICES WENT ON TO SAY THAT GENERAL ACCEPTANCE IS LAUDABLE AND THAT JUDGES COULD CONSIDER IT AMONG OTHER INDICATIONS WHEN DETERMINING WHETHER SCIENTIFIC TESTIMONY IS ADMISSIBLE DESPITE THE PARTIAL SETBACK THE NATIONAL ASSOCIATION OF MANUFACTURERS EMITTED A MUFFLED CHEER WE WERE PLEASED TO SEE LANGUAGE SUGGESTING THAT SCIENTIFIC THEORIES MUST BE TESTED OR ABLE TO BE TESTED SAID JAN AMUNDSON THE ASSOCIATION'S GENERAL COUNSEL IN ANOTHER DECISION MONDAY THE HIGH COURT SPURNED THE INSURANCE INDUSTRY'S PLEA FOR COMPLETE PROTECTION AGAINST A MASSIVE ANTITRUST SUIT ALLEGING A CONSPIRACY TO CUT OFF CERTAIN TYPES OF COVERAGE IN THE MID1980S THE JUSTICES SAID FOUR GIANT US CARRIERS AND THEIR BRITISH INDUSTRY ALLIES MUST FACE CHARGES OF PLOTTING A BOYCOTT TO DISCIPLINE DISSENTING US INSURERS BUT THE US DEFENDANTS WERE CELEBRATING ANYWAY THEY WOULD OF COURSE HAVE PREFERRED TO SEE THE SUIT THROWN OUT SHORT OF DISMISSAL HOWEVER THEY HAD WANTED THE COURT TO ISSUE A NARROW DEFINITION OF AN ILLEGAL BOYCOTT THEY GOT THAT THEY ALSO GOT REASSURANCE THAT BY DEALING WITH FOREIGN FIRMS THEY DIDN'T AUTOMATICALLY OPEN THEMSELVES TO BROAD LIABILITY THE ATTORNEYS GENERAL FROM 19 STATES WHO FILED THE CONSOLIDATED SUIT SAY THEY ARE HAPPY TO BE GOING TO TRIAL BUT THE HIGH COURT MADE IT POSSIBLE FOR THE INSURERS TO MOUNT A FORMIDABLE DEFENSE ANTITRUST RULES FOR THE INSURANCE INDUSTRY ARE IDIOSYNCRATIC ANOTHER ANTITRUST CASE WHICH INVOLVED THE CIGARETTE BUSINESS PROVIDED A MORE BROADLY APPLICABLE RULING REBUFFING AN APPEAL BY BROOKE GROUP LTD THE COURT MADE IT MORE DIFFICULT TO WIN SUITS ALLEGING THAT A COMPANY'S PRICE SLASHING INJURED A COMPETITOR MORE IMPORTANT THAN THE SPECIFICS OF TOBACCOINDUSTRY PRICING POLICIES WAS AN EXTENDED MEDITATION BY JUSTICE ANTHONY KENNEDY ON THE NEED FOR ANTITRUST LAWSUITS TO BE BASED ON SENSIBLE ECONOMIC ANALYSIS WRITING FOR THE SIXMEMBER MAJORITY JUSTICE KENNEDY SEEMED TO BE RETRACTING INTIMATIONS MADE BY THE HIGH COURT A YEAR AGO THAT JUDGES SHOULDN'T BE TOO QUICK TO DISMISS ANTITRUST SUITS BASED ON ECONOMIC THEORY NOW SOME JUDGES WHO MIGHT HAVE HESITATED WILL FEEL FREE TO PULL THE PLUG ON PLAINTIFFS BEFORE TRIAL ON THE EMPLOYMENT FRONT BUSINESS DEFENDANTS SUCCESSFULLY PRESSED THE COURT TO SAY ACTIONS THAT MAY LOOK LIKE DISCRIMINATION AREN'T NECESSARILY ILLEGAL RULINGS IN CASES INVOLVING RACE AND AGE BIAS WILL PUT MORE PRESSURE ON PLAINTIFFS TO FIND DIRECT EVIDENCE THAT THEY WERE TREATED BADLY FOR UNLAWFUL REASONS ONE DECISION WAS A CLEAR WIN FOR BUSINESS IN THE CASE OF A BLACK PRISON GUARD WHO CLAIMED HIS FIRING WAS DISCRIMINATORY THE HIGH COURT SAID AN EMPLOYER'S FALSE JUSTIFICATION FOR SUCH ACTION SHOULDN'T RESULT IN AN AUTOMATIC PLAINTIFF'S VICTORY CIVILRIGHTS LAWYERS CONTEND THAT INDIRECT EVIDENCE SUCH AS AN EMPLOYER'S MISLEADING STATEMENTS MAY BE ALL A PLAINTIFF HAS TO PROVE BIAS MANY BOSSES THESE DAYS KNOW BETTER THAN TO LEAVE RACIST MEMOS LYING AROUND BUT THE SUPREME COURT RULED 54 THAT EVEN AN EMPLOYER'S OUTRIGHT LIE DOESN'T BY ITSELF PROVE DISCRIMINATION THE ANTIBIAS LAWS BAN BIAS NOT DISHONESTY JUSTICE ANTONIN SCALIA WROTE FOR THE MAJORITY IN A SEPARATE CASE THE COURT PARTLY SHIELDED EMPLOYERS FROM LAWSUITS CLAIMING THAT THEY DISCRIMINATED AGAINST OLDER WORKERS BY INTERFERING WITH THEIR PENSION RIGHTS AGAIN THE MESSAGE WAS THAT A PERSON WHO IS DENIED RETIREMENT BENEFITS THAT ARE TIED TO YEARS OF SERVICE RATHER THAN AGE ISN'T NECESSARILY A VICTIM OF BIAS ACCOUNTANTS AND ACTUARIES ALSO COULD BREATHE A LITTLE EASIER AFTER THE COURT MADE THEM TOUGHER TO SUE OUTSIDE ACCOUNTANTS WHO SERVE BUT DON'T HELP RUN ALLEGEDLY CROOKED BUSINESSES CAN'T BE SUED UNDER THE FEDERAL CIVILRACKETEERING LAW THE JUSTICES RULED IN MARCH EARLIER THIS MONTH THE COURT SAID ACTUARIES WHO DON'T CONTROL THE PENSION PLANS THEY ADVISE LIKEWISE CAN'T BE SUED FOR MONETARY DAMAGES UNDER THE FEDERAL PENSIONPROTECTION STATUTE ONE OF THE CASES THAT MAY HELP BUSINESS TREMENDOUSLY IN THE LONG RUN DIDN'T INVOLVE ANY COMPANIES AT ALL THE QUESTION WAS HOW STATES SHOULD APPLY A 1989 HIGHCOURT RULING THAT SAID THEY COULDN'T TAX THE PENSIONS OF FEDERAL RETIREES MORE HEAVILY THAN THOSE OF STATE AND LOCAL RETIREES BY A 72 VOTE THE COURT SAID STATES THAT FAVORED THEIR OWN FORMER EMPLOYEES CAN'T SIMPLY STOP THE PRACTICE THESE STATES MUST PROVIDE SOME SORT OF RETROACTIVE REMEDY TO THE UNFAIRLY TAXED FEDERAL RETIREES AS A GENERAL MATTER THE COURT WENT FURTHER THAN IN THE PAST IN STATING THAT JUDICIAL RULINGS CAN'T BE APPLIED ONLY IN THE FUTURE TO AVOID RETROACTIVE FINANCIAL BURDENS SUCH AS TAX REFUNDS AS ARCANE AS THIS SOUNDS IT IS IMPORTANT TO BUSINESS BY ANNOUNCING THAT THEY WILL APPLY THEIR RULINGS TO OTHER PENDING OR POTENTIAL CASES THE JUSTICES IN EFFECT MADE IT MORE DIFFICULT FOR THEMSELVES TO OVERTURN SETTLED PRECEDENT OR MAKE NEW LAW APPLIED RETROACTIVELY MAJOR LEGAL CHANGES IN BUSINESS LAW COME WITH BIG PRICE TAGS IN THE RETIREES CASE THAT COULD MEAN HUNDREDS OF MILLIONS OF DOLLARS IN POTENTIAL TAX REFUNDS ALTHOUGH THEY BIT THE BULLET IN THAT CASE THE JUSTICES GENERALLY DON'T RELISH CAUSING FINANCIAL DISRUPTION THE RETROACTIVITY PRINCIPLE THUS DISCOURAGES THEM FROM OVERRULING PRECEDENT SAID JOEL KLEIN A VETERAN SUPREME COURT LITIGATOR AND THAT'S FINE WITH BUSINESS PLANNERS WHO VALUE PREDICTABILITY IN THE LEGAL WORLD PERHAPS THE BIGGEST DISAPPOINTMENT OF THE TERM FOR BUSINESS WAS THE COURT'S HESITANCE TO SET MEANINGFUL CONSTITUTIONAL LIMITS ON PUNITIVE DAMAGES IN CIVIL LAWSUITS SOME JUSTICES ARE WORRIED ABOUT EXCESSIVE PUNITIVE DAMAGES WHICH DETER AND PUNISH WRONGDOING AS OPPOSED TO REIMBURSING LOSSES BUT FOR THE FIFTH TIME IN RECENT YEARS THE COURT TEED UP THE PUNITIVEDAMAGES ISSUE ONLY TO SLICE IT INTO THE ROUGH MR KLEIN NOW ESTIMATES THE CHANCES OF THE COURT'S FORGING A MAJORITY TO REIN IN PUNITIVE DAMAGES AS ZERO BUSINESS MIGHT BE BETTER ADVISED TO TAKE ITS COMPLAINTS TO CONGRESS AND STATE LEGISLATORS SEE RELATED ARTICLE RUTH GINSBURG THE SWING VOTE OF THE FUTURE WSJ JUNE 30 1993 9306300083 930630 INTERNATIONAL BRIEF BRIDGESTONE CORP JAPANESE CONCERN REDUCES ESTIMATE FOR 1993 EARNINGS BRIDGESTONE CORP A JAPANESE TIRE MAKER LOWERED ITS FORECAST FOR UNCONSOLIDATED EARNINGS IN CALENDAR 1993 THE COMPANY BLAMED WEAK DOMESTIC DEMAND AND THE YEN'S APPRECIATION WHICH LOWERED RETURNS FROM FOREIGN CURRENCYDENOMINATED EXPORTS BRIDGESTONE NOW EXPECTS PRETAX PROFIT OF 40 BILLION YEN 377 MILLION DOWN 32 FROM ITS PRIOR FORECAST OF 59 BILLION YEN THE FORECAST FOR NET INCOME WAS PARED 37 TO 19 BILLION YEN FROM 30 BILLION YEN IN 1992 BRIDGESTONE HAD PRETAX PROFIT OF 689 BILLION YEN AND NET INCOME OF 3740 BILLION YEN SALES FOR THE CURRENT YEAR ARE NOW EXPECTED TO TOTAL 655 BILLION YEN DOWN FROM SALES LAST YEAR OF 72544 BILLION YEN PREVIOUSLY THE COMPANY HAD EXPECTED SALES THIS YEAR TO TOTAL 720 BILLION YEN 9306300082 930630 WHO'S NEWS DIED JAMES MILTON VOSS 76 FORMER CHAIRMAN AND CHIEF EXECUTIVE OF CALTEX PETROLEUM CORP TUESDAY IN AUSTIN TEXAS DUE TO KIDNEY FAILURE 9306300081 930630 MMI STOCKINDEX CONTRACT MAY BE SWITCHED TO MERC CHICAGO THE CHICAGO BOARD OF TRADE SAID THE AMERICAN STOCK EXCHANGE HAD DECLINED TO RENEW AN AGREEMENT UNDER WHICH THE CBOT TRADES THE MAJOR MARKET INDEX STOCKINDEX FUTURES CONTRACT A SPOKESMAN FOR THE CHICAGO MERCANTILE EXCHANGE THE CBOT'S CHIEF RIVAL SAID HE EXPECTS THE AMEX TO AWARD RIGHTS TO TRADE THE CONTRACT TO THE MERC THE MERC ALREADY TRADES HUGELY POPULAR STOCKINDEX FUTURES CONTRACTS BASED ON THE STANDARD & POOR'S 500 AND MIDCAP 400 STOCK INDEXES THE THINLY TRADED MMI STOCKINDEX CONTRACT WHICH TRACKS THE PRICES OF 20 BLUECHIP STOCKS REMAINED OPEN FOR TRADING ON TUESDAY OCT 20 1987 THE DAY AFTER THE STOCK MARKET'S 508POINT PLUNGE EVEN AS TRADING IN THE MERC'S S&P 500 CONTRACT WAS HALTED FEDERAL REGULATORS HAVE CREDITED THE CONTINUED TRADING OF THE MMI AS ONE FACTOR THAT PREVENTED GRIDLOCK IN US SECURITIES MARKETS ON THAT DAY 9306300080 930630 HOUSE BANKING PANEL AIMS TO CHECK LOAN TRADING NEW YORK HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ SAID THE PANEL IS INVESTIGATING THE PRACTICE BY BANKS OF TRADING LOANS TO DEVELOPING COUNTRIES THE TEXAS DEMOCRAT SAID THE AIM OF THE PROBE WHICH HAS JUST STARTED IS TO DETERMINE WHETHER THE MARKET IS BEING PROPERLY REGULATED AND ALSO TO ENSURE THAT THE BANKS THEMSELVES ARE ACTING APPROPRIATELY COMMITTEE STAFF RECENTLY CONTACTED THE FEDERAL RESERVE AND OTHER BANK REGULATORS TO DISCUSS THE MATTER IN THE LATE1980S THERE WAS A HUGE GROWTH IN THE TRADING OF BANK LOANS TO DEVELOPING COUNTRIES AS BIG BANKS SOUGHT TO SELL OFF THESE CREDITS OFTEN AT HUGE DISCOUNTS BUT UNTIL RECENTLY THE BUSINESS WAS LARGELY UNREGULATED SOME BIG BANKS AND THEIR STOCKHOLDERS TOOK HUGE LOSSES AS THEY WROTE DOWN THESE LOANS MEANWHILE SOME FORMER BANK OFFICERS MADE HUGE PROFITS BY BUYING THESE CREDITS AT BARGAINBASEMENT PRICES SOME MARKETS SPECIALISTS ESTIMATE THAT THE MARKET TURNOVER COULD REACH AS HIGH AS 600 BILLION THIS YEAR 9306300079 930630 AMERICAN EXCHANGE STARTS TRADING IN MARK WARRANTS NEW YORK THE AMERICAN STOCK EXCHANGE SAID IT BEGAN TRADING CURRENCY WARRANTS TIED TO THE EXCHANGE RATE OF THE GERMAN MARK CITING STRONG INVESTOR INTEREST IN OVERSEAS MARKETS THE NEW SECURITIES UNDERWRITTEN BY GOLDMAN SACHS & CO ARE THE SECOND SUCH INSTRUMENTS TO TRADE ON THE AMEX A PREVIOUS ISSUE IN 1987 HAS EXPIRED THE NEW SECURITIES WHICH EXPIRE JUNE 30 1995 WILL TYPICALLY RISE IN VALUE AS THE DOLLAR APPRECIATES AGAINST THE MARK THE EXCHANGE ALSO LISTS WARRANTS TIED TO THE JAPANESE YEN AND THE BRITISH POUND CURRENCY WARRANTS BASED ON THE VALUE OF THE DOLLAR IN RELATION TO A BASKET OF CURRENCIES THE POUND THE YEN AND THE MARK WERE ADDED IN JANUARY INTERNATIONAL FINANCE CORP A SOURCE OF PRIVATESECTOR FINANCING IN DEVELOPING COUNTRIES AND A MEMBER OF THE WORLD BANK GROUP WILL ISSUE FOUR MILLION OF THE NEW WARRANTS THE WARRANTS WHICH CARRY A STRIKE PRICE OF 17040 MARKS OPENED AT 4875 AND CLOSED AT 5125 ON VOLUME OF 23600 THEY ARE SETTLED IN US DOLLARS AND TRADE UNDER THE SYMBOL GDMWS 9306300078 930630 BUSINESS BRIEF JAMES RIVER CORP AFFILIATE SIGNS LETTER TO SELL 300000 ACRES OF TIMBERLAND JAMES RIVER CORP SAID ITS 23OWNED DIAMOND OCCIDENTAL FOREST INC AFFILIATE SIGNED A LETTER OF INTENT TO SELL 300000 ACRES OF TIMBERLAND TO A UNIT OF JOHN HANCOCK MUTUAL LIFE INSURANCE CO TERMS WEREN'T DISCLOSED BUT THE TRANSACTION IS EXPECTED TO BE COMPLETED IN THE THIRD QUARTER THE RICHMOND VA MAKER OF CONSUMER AND PAPER PRODUCTS SAID PROCEEDS IN EXCESS OF 100 MILLION FROM THIS AND OTHER LAND SALES WILL BE USED IN CONNECTION WITH A PLAN TO ACQUIRE THE REMAINDER OF DIAMOND OCCIDENTAL FOREST FROM OCCIDENTAL FOREST INC PARIS IN NOVEMBER DIAMOND OCCIDENTAL FOREST OWNS ABOUT 820000 ACRES OF TIMBERLAND HANCOCK TIMBER RESOURCE GROUP HAS MORE THAN 17 MILLION ACRES UNDER MANAGEMENT 9306300077 930630 OTC FOCUS NASDAQ STOCKS CLOSE MIXED AS INVESTORS TAKE SOME PROFITS IN TECHNOLOGY ISSUES BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTERMARKET WAS MIXED IN A SESSION HIGHLIGHTED BY SELLING IN TECHNOLOGY STOCKS AND A 47 PLUNGE IN ABSOLUTE ENTERTAINMENT ENDING A THREEDAY RALLY THE NASDAQ COMPOSITE INDEX FELL 177 OR 025 TO 70107 ADVANCING ISSUES BARELY OUTNUMBERED DECLINERS 1341 TO 1340 ON VOLUME OF 251 MILLION SHARES UP FROM 227 MILLION SHARES MONDAY THE TECHNOLOGY STOCKS HAD A BIG RUNUP ON MONDAY AND NOW THERE IS SOME PROFITTAKING SAID LOUIS TODD HEAD OF EQUITY TRADING AT JC BRADFORD & CO THE PACE OF TRADING WILL EASE UP GOING INTO THE FOURTH OF JULY WEEKEND APPLE COMPUTER DROPPED 1 1/8 TO 39 CISCO SYSTEMS EASED 5/8 TO 55 5/8 MICROSOFT FELL 1 1/4 TO 89 AND ORACLE TUMBLED 2 3/8 TO 46 1/4 INVESTORS BAILED OUT OF ABSOLUTE ENTERTAINMENT YESTERDAY WHEN THE COMPANY DISCLOSED THAT IT WILL FAIL TO MEET EARNINGS ESTIMATES FOR THE SECOND AND THIRD QUARTERS OF FISCAL 1993 AND WILL REPORT LOSSES FOR EACH OF THOSE TWO QUARTERS FOR THE FULL FISCAL YEAR THE COMPANY SAID IT EXPECTS PERSHARE EARNINGS SIGNIFICANTLY BELOW ANALYSTS' ESTIMATES THE COMPANY BLAMED DISAPPOINTING SALES OF VIDEO GAMES BASED ON THE MOTION PICTURE TOYS LOWERTHANFORECAST ROYALTY INCOME AND LOWER EUROPEAN SALES FOR THE WORSETHANEXPECTED RESULTS ABSOLUTE ENTERTAINMENT DEVELOPS AND PUBLISHES ENTERTAINMENT SOFTWARE FOR NINTENDO AND SEGA GENESIS ABSOLUTE ENTERTAINMENT IS THE LATEST IPO SCREWUP SAID CHARLES RONSON A STOCK PICKER AT NEW YORK INVESTMENT FIRM BALESTRA CAPITAL AND THE PUBLISHER OF THE IPO VALUE MONITOR NEWSLETTER THESE NEW STOCKS HAVE TO COME OUT WITH GOOD EARNINGS OTHERWISE THEY'LL GET SMACKED SEACOR HOLDINGS ROSE 7/8 TO 21 PAINEWEBBER ANALYST JAMES CARROLL INITIATED COVERAGE OF SEACOR WITH AN ATTRACTIVE RATING THE ANALYST SAYS THE MARINE VESSEL SERVICE COMPANY IS POISED TO BENEFIT FROM A TIGHTENING MARKET FOR SUCH VESSELS IN THE GULF OF MEXICO IN THE NEXT 12 TO 24 MONTHS SEACOR COMPLETED ITS INITIAL PUBLIC OFFERING IN DECEMBER AT 15 THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SEVERAL CASINO STOCKS TOOK IT ON THE CHIN SAID LESLIE SEFF MANAGER OF NASDAQ TRADING AT WAGNER STOTT & CO THEY'VE GONE TO IMPRESSIVE LEVELS SO I'M NOT SURPRISED THEY HAVE SOME VOLATILE DAYS CASINO MAGIC DIPPED 3/4 TO 23 1/2 IT WAS AMONG THE STOCKS NAMED IN A WALL STREET JOURNAL COLUMN YESTERDAY AS AN OVERPRICED ISSUE THAT HAS DISAPPOINTED SHORT SELLERS ALSO PRESIDENT RIVERBOAT CASINOS DROPPED 1 1/2 TO 33 1/4 WHILE GRAND CASINOS SLUMPED 1 5/8 TO 32 3/8 BEN & JERRY'S HOMEMADE GAINED 2 TO 26 SMITH BARNEY HARRIS UPHAM TOOK THE STOCK OFF ITS FOCUS LIST OF EMERGING GROWTH COMPANIES BUT STILL MAINTAINED A BUY RATING THE STOCK SKIDDED MONDAY AFTER THE ICE CREAM MAKER SAID IT EXPECTS SECONDQUARTER EARNINGS PER SHARE TO BE BELOW ANALYSTS' ESTIMATES BIOTECHNOLOGY STOCKS USUALLY LEADERS AMONG NASDAQ STOCKS WERE MIXED YESTERDAY BIOGEN WAS UP 1/8 TO 32 3/8 BUT SYNERGEN DIPPED 1/4 TO 12 RHONEPOULENC RORER RECEIVED A RECOMMENDATION FOR APPROVAL TO MARKET ITS WHITE BLOOD CELLSTIMULATING DRUG IN EUROPE ANALYSTS SAID PENDING APPROVAL OF THE DRUG IS NOT A NEGATIVE DEVELOPMENT FOR AMGEN WHICH ALREADY MARKETS ITS OWN VERSION IN EUROPE NEVERTHELESS AMGEN LOST 2 TO 35 3/4 MARY ROMANO CONTRIBUTED TO THIS ARTICLE 9306300076 930630 TECHNOLOGY FDA IS ADVISED TO REQUIRE ALERT ON ACETAMINOPHEN WASHINGTON A FOOD AND DRUG ADMINISTRATION ADVISORY PANEL RECOMMENDED THAT THE AGENCY REQUIRE LABELS ON ACETAMINOPHEN TO WARN HEAVY DRINKERS THAT EXCESSIVE DOSES OF THE PAIN KILLER CAN LEAD TO LIVER DAMAGE BUT THE PANEL URGED THE FDA TO DELAY ANY NEW REQUIREMENT UNTIL IT CONSIDERS WHETHER TO REQUIRE WARNINGS ABOUT ALCOHOL INTAKE ON PRODUCTS CONTAINING OTHER PAIN KILLERS SUCH AS ASPIRIN OR IBUPROFEN THE AGENCY'S OVERTHECOUNTER DRUG ADVISORY COMMITTEE VOTED 91 TO RECOMMEND THE WARNING LABEL AT A DAYLONG MEETING IN WHICH IT HEARD TESTIMONY ON RARE BUT OCCASIONALLY FATAL LIVER DAMAGE AMONG DRINKERS WHO TOOK OVERDOSES OF ACETAMINOPHEN TYLENOL MADE BY JOHNSON & JOHNSON'S MCNEIL CONSUMER PRODUCTS CO IS THE LEADING OVERTHECOUNTER PRODUCT CONTAINING ACETAMINOPHEN THE PANEL DIDN'T MAKE A RECOMMENDATION ABOUT WHAT CONSTITUTES HEAVY DRINKING OR HEAVY USE OF THE DRUG WHILE THE FDA ISN'T REQUIRED TO FOLLOW THE ADVICE OF ITS ADVISORY PANELS IT GENERALLY DOES SO 9306300075 930630 INTERNATIONAL TV EXPLODES ON JAPAN'S POLITICAL SCENE IMAGE' MEDIUM AIDS YOUNG REFORMERS BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO LONG BEFORE A NOCONFIDENCE VOTE BROUGHT DOWN HIS GOVERNMENT JAPANESE PRIME MINISTER KIICHI MIYAZAWA WAS DONE IN BY AN ALTOGETHER NEW POLITICAL FORCE IN THIS NATION THE TUBE ON MAY 31 MR MIYAZAWA ARRIVED AT HIS OFFICIAL RESIDENCE TO FIND SOICHIRO TAHARA JAPAN'S MOST TENACIOUS TELEVISION JOURNALIST WAITING WITH A CAMERA CREW TAHARASAN SAID THE HAGGARD PRIME MINISTER AS HE STEELED HIMSELF FOR THE SCHEDULED INTERVIEW IT WILL BE IMPOSSIBLE FOR ME TO TALK ABOUT POLITICAL REFORM TONIGHT IF I SPEAK NOW IT WILL RUIN EVERYTHING MR MIYAZAWA MR TAHARA WROTE LATER SANK INTO A SOFA AND SAT SILENT FOR SEVERAL MINUTES FINALLY HE ANSWERED WELL THEN LET'S DO IT THUS BEGAN A CHAIN OF EVENTS THAT CULMINATED IN MR MIYAZAWA'S DOWNFALL AND POLITICAL UPHEAVAL IN JAPAN IN WAYS NOT EASILY COMPREHENSIBLE TO THOSE BEYOND THE REACH OF JAPANESE AIRWAVES THE TURMOIL SWEEPING THIS NATION IS AS MUCH ABOUT THE MEDIA AS ABOUT POLITICS JUST AS BROADCAST IMAGES HELPED SPREAD REVOLUTION THROUGH EASTERN EUROPE SO TELEVISION HAS USHERED IN A SPIRIT OF GLASNOST IN JAPAN JAPAN'S POLITICIANS TRADITIONALLY HAVE HAD LITTLE USE FOR SUCH WESTERN NOTIONS AS IMAGE CREDIBILITY OR CHARISMA PRIZED QUALITIES IN THE TV ARENA THEY BUILT THEIR POLITICAL MACHINES ONE HOUSEHOLD AT A TIME SLOGGING DOORTODOOR GREASING A PALM OR TWO WHEN GOOD WILL AND FAMILY TIES WEREN'T ENOUGH TO WIN SUPPORT LEGISLATIVE DEALS WERE BROKERED BEHIND THE SCENES BUT THE OLDSTYLE OF WHEELING AND DEALING IS UNDER FIRE THESE DAYS THANKS TO THE SOARING POPULARITY OF TELEVISION PROGRAMS SUCH AS SUNDAY PROJECT A HIGHVOLTAGE WEEKLY TALK SHOW ANCHORED BY MR TAHARA AND NEWS STATION A CHEEKY LATENIGHT NEWS PROGRAM BY HAMMERING AT POLITICAL CORRUPTION OFFERING AIRTIME TO CRITICS AND REFORMERS AND PUSHING JAPAN'S OLDER POLITICIANS INTO THE SPOTLIGHT TELEVISION IS PLAYING A NEW AND CENTRAL ROLE IN WHIPPING UP THE MOOD FOR POLITICAL CHANGE IN AMERICA YOU HAVE 60 MINUTES' AND MACNEIL/LEHRER' BUT SUCH PROGRAMS ARE ONLY STARTING TO BECOME IMPORTANT IN JAPAN SAYS YURIKO KOIKE A MEMBER OF THE JAPAN NEW PARTY A POPULAR REFORM GROUP AND A MEMBER OF THE UPPER HOUSE SHE OUGHT TO KNOW MS KOIKE JUGGLES HER POLITICAL DUTIES WITH A CAREER AS A BROADCASTER ON TOKYO'S CHANNEL 12 TELEVISION EXPOSURE HAS HELPED US A LOT SAYS YOSHIO TERASAWA THE TREASURER OF CASHSTRAPPED JAPAN NEW PARTY ON TV THE OLDER GENERATION OF LDP LEADERS APPEAR LIKE OLD MONSTERS HE SAYS MR MIYAZAWA CERTAINLY HAD HIS TROUBLES WITH TV CORNERED IN THE INTERVIEW WITH MR TAHARA THE PRIME MINISTER PROMISED TO PUSH REFORM THROUGH PARLIAMENT WITHIN DAYS I'LL DO IT HE DECLARED IF I SAY I'LL DO IT I'LL DO IT IT WAS AN UNCHARACTERISTICALLY BOLD STATEMENT MR TAHARA'S NETWORK PLAYED THE SOUND BITE AGAIN AND AGAIN FOR DAYS BUT IT WAS SOON CLEAR MR MIYAZAWA WOULDN'T PULL IT OFF CRITICS ACCUSED HIM OF SUBTERFUGE WHEN A GROUP LED BY FORMER FINANCE MINISTER TSUTOMU HATA FINALLY BOLTED THE LDP AND BROUGHT DOWN MR MIYAZAWA'S CABINET WITH A NOCONFIDENCE VOTE PUNDITS DUBBED THE BREAK USOTSUKI KAISAN THE LIAR'S DISSOLUTION THE REFORMERS DOMINATED THE AIRWAVES IN THE DAYS AFTER THE JUNE 18 SPLIT THE AFFABLE MR HATA STUMPED FOR HIS NEW JAPAN RENEWAL PARTY ON ALL THREE MAJOR MORNING TALK SHOWS AND MADE NO LESS THAN 35 TV APPEARANCES IN THE WEEK AFTER THE VOTE OTHER REFORMERS FOLLOWED SUIT THE TELEVISION STATIONS ARE TREATING PEOPLE WHO SPLIT FROM THE PARTY LIKE HEROES COMPLAINS LDP SECRETARYGENERAL SEIROKU KAJIYAMA WHO ONCE TRIED TO BLOCK REFORMERS WITHIN HIS PARTY FROM MAKING UNAUTHORIZED TV APPEARANCES THE TV STATIONS SAY THEY'RE ONLY RESPONDING TO VIEWER INTEREST IT USED TO BE THAT RATINGS WOULD PLUMMET THE SECOND THE WORD POLITICS' CAME OUT OF SOMEONE'S MOUTH SAYS YUKICHI AMANO A MEDIA SPECIALIST NOW EVERYONE WANTS TO KNOW MORE KEIICHI KATSURA OF TOKYO UNIVERSITY ANOTHER MEDIA EXPERT HAS A SIMPLE EXPLANATION FOR TELEVISION'S GROWING ROLE IN JAPAN HE SAYS NEWSPAPERS ARE A BORE JAPANESE VOTERS DON'T TRUST THEIR NEWSPAPERS TO REPORT POLITICS OBJECTIVELY MR KATSURA SAYS BECAUSE THE REPORTERS GET TOO CHUMMY WITH THE POLITICIANS THEY COVER IT'S COMMON FOR JAPANESE REPORTERS WHO RARELY SIGN THEIR ARTICLES TO ACT AS PROMOTERS FOR POLITICIANS ON THEIR BEAT THUS MUCH LIKE THEIR US COUNTERPARTS YOUNGER JAPANESE POLITICIANS HAVE TURNED TO TV THEY ESCHEW THE MANGLED SYNTAX AND SHINY BLUE SUITS OF THEIR ELDERS IN THE LDP FOR CRISP SENTENCES AND ARMANI SUITS ONE SIGN OF THE TIMES POLITICAL CONSULTING FIRMS AND IMAGE MANAGERS ARE SUDDENLY IN VOGUE IN JAPAN WE WERE USED TO GOING ALONG SAYS MS KOIKE THE POLITICIAN BUT THROUGH TELEVISION NOW WE'RE LEARNING TO SPEAK OUT 9306300074 930630 BUSINESS BRIEF UNITED TECHNOLOGIES CORP PRATT & WHITNEY UNIT GETS INCENTIVES FROM CONNECTICUT CONNECTICUT GOV LOWELL P WEICKER JR SIGNED INTO LAW A 32 MILLION INCENTIVE PACKAGE DESIGNED TO HELP KEEP PRATT & WHITNEY MANUFACTURING PLANTS IN THE STATE GOV WEICKER'S APPROVAL MARKED THE LAST STEP IN A PROLONGED CAMPAIGN BY STATE POLITICIANS AND UNION LEADERS TO KEEP ABOUT 2300 JOBS IN CONNECTICUT THE INCENTIVE PACKAGE HOWEVER DOESN'T AFFECT 6700 LAYOFFS PREVIOUSLY ANNOUNCED BY THE COMPANY A UNIT OF UNITED TECHNOLOGIES CORP THIS YEAR THE JETENGINE MAKER SAID IT WOULD MOVE THE JOBS OUT OF STATE IF IT DIDN'T RECEIVE CERTAIN CONCESSIONS FROM THE STATE AND UNION WORKERS LAST WEEK THE MACHINISTS UNION AT THE COMPANY NARROWLY APPROVED A NEW BARGAINING AGREEMENT THAT AMONG OTHER THINGS TIED PAY MORE CLOSELY TO PRODUCTIVITY 9306300073 930630 INTERNATIONAL BRIEF ASEA AB INVESTOR AB SELLS ITS STAKE DRIVING STOCK PRICE DOWN INVESTOR AB THE KEY HOLDING COMPANY IN THE FINANCIAL EMPIRE OF SWEDEN'S WALLENBERG FAMILY SOLD ITS ENTIRE HOLDING IN ASEA AB NEARLY 7 MILLION SHARES AT 422 KRONOR A SHARE TO A LIMITED NUMBER OF INTERNATIONAL AND DOMESTIC INVESTORS INVESTOR AB SAID IT SOLD THE STAKE TO REDUCE DEBT THE STAKE FETCHED 294 BILLION KRONOR 3772 MILLION AND BROUGHT A NET CAPITAL GAIN OF 950 MILLION KRONOR STOCKHOLMBASED ASEA'S ONLY FUNCTION IS TO HOLD A 50 STAKE IN SWISSSWEDISH ENGINEERING GROUP ASEA BROWN BOVERI AG ASEA FELL HEAVILY IN STOCKHOLM ON NEWS OF THE INVESTOR SALE WITH THE GROUP'S CLASS B SHARES DOWN 22 KRONOR OR 49 TO 430 KRONOR WHILE THE CLASS A COUNTERPART DROPPED 20 KRONOR OR 44 TO 433 KRONOR INVESTOR RETAINS INDIRECT OWNERSHIP INTERESTS IN ASEA THROUGH ITS 341 STAKE IN INCENTIVE AB WHICH IN TURN HAS A 329 STAKE IN ASEA INCENTIVE WAS FORMED IN 1991 FROM ASEA INDUSTRIAL OPERATIONS THAT WERE NOT PART OF THE MERGER WITH BROWN BOVERI & CO AG OF SWITZERLAND THAT FORMED ABB 9306300072 930614 MANAGER'S JOURNAL THE DOLLARS AND SCENTS OF OFFICE BIOLOGY BY EDITH WEINER IN THIS AGE OF BRUTAL COMPETITIVENESS HEALTHCARE COSTS AND PRODUCTIVITY ARE TWO PROBLEMS BEDEVILING MANAGEMENT YET IN ALL THE RHETORIC IN ALL THE FRENZIED EFFORTS ONE KEY TO BOTH OF THESE CRITICAL COST ISSUES IS IGNORED OFFICE BIOLOGY IN RECENT YEARS THERE HAVE BEEN EXTRAORDINARY BREAKTHROUGHS IN UNDERSTANDING OUR BIOLOGY THESE BREAKTHROUGHS NOW GIVE US AN OPPORTUNITY TO APPLY WHAT WE KNOW TO MAKING PEOPLE IN THE WORKPLACE HEALTHIER AND MORE PRODUCTIVE SOME EXAMPLES VENTILATION AND LIGHTING TWO THINGS ESSENTIAL TO GOOD HEALTH IN THE OFFICE ARE ADEQUATE VENTILATION AND NATURAL LIGHT IN MISGUIDED EFFORTS TO SAVE MONEY ON AIRCONDITIONING BILLS AND THE LIKE MANY COMPANIES HAVE SEALED WORKPLACES TIGHT AND CUT BACK ON COSTS RELATING TO FRESHAIR INTAKE MUCH AS THE AIRLINES HAVE RECENTLY BEEN ACCUSED OF DOING THE MONEY SAVED IS MINOR IN COMPARISON TO THE COSTS OF INCREASED ABSENTEEISM AND DOCTOR'S VISITS BY EMPLOYEES WHO PASS ON VIRUSES IN SUCH ENVIRONMENTS AS EASILY AS CHILDREN IN A PACKED SCHOOLROOM DO PRODUCTIVITY ALSO DECREASES WITH IMPROPER LIGHTING THIS BECOMES EVEN MORE IMPORTANT WITH THE GROWING POPULATION OF OLDER WORKERS SINCE EYESIGHT DECLINES WITH AGE THE RETINAS OF A 60YEAROLD CAN PICK UP ONLY ONETHIRD THE LIGHT OF THOSE OF A 20YEAROLD OLDER PEOPLE ALSO HAVE LESS ABILITY TO DISCRIMINATE CONTRAST AND COLORS IN ONE CASE THE SOCIAL SECURITY ADMINISTRATION'S BALTIMORE OFFICE WHERE LIGHTING WAS REDUCED TO SAVE ENERGY EMPLOYEES BEGAN COMPLAINING OF EYESTRAIN AND HEADACHES THE ORIGINAL LIGHTING LEVELS WERE RESTORED AND SOON PRODUCTIVITY RETURNED TO ITS ORIGINAL LEVEL IT WAS ESTIMATED THAT FOR EVERY DOLLAR SAVED BY REDUCING LIGHTING 160 OF PRODUCTIVITY WAS LOST AND NATURAL LIGHTING HAS FAR DIFFERENT AND SUPERIOR EFFECTS ON OUR BODIES THAN ARTIFICIAL LIGHTING SCENTS LEADING PRODUCERS OF SCENTS FOR THE PERFUME INDUSTRY BELIEVE THAT FRAGRANCE PRODUCTS OF THE FUTURE MAY BE POTENT ENOUGH TO MAKE PEOPLE EAT LESS WORK HARDER DRIVE SAFER AND SLEEP MORE SOUNDLY THESE PRODUCTS MAY DO MANY THINGS WE NOW USE PHARMACEUTICALS FOR KAJIMA THE TOKYO CONSTRUCTION GIANT IS EXPERIMENTING WITH AND ACTUALLY USING FRAGRANCE DELIVERY SYSTEMS TO AFFECT MOOD AND OUTPUT IN THE OFFICE THE ATRIUM OF KAJIMA'S NEW TOKYO HEADQUARTERS IS OUTFITTED WITH A COMPUTERIZED DUCT SYSTEM THAT CAN PUMP DIFFERENT AROMAS INTO THE ENVIRONMENT AT DIFFERENT TIMES OF DAY IN THE MORNING WORKERS ARE EXPOSED TO THE SMELL OF LEMONS WHICH INVIGORATES THEM BEFORE NOON THE SCENT OF ROSES IS PUMPED IN AND A CALMING EFFECT IS PRODUCED WHICH ENABLES THE WORKERS TO ENJOY THEIR LUNCHES BETTER IN THE AFTERNOON AT ABOUT THE TIME ENERGY BEGINS TO FLAG THE WOODSY ODOR OF TREETRUNK OILS IS USED TO PEP UP THE WORKERS WHOSE PRODUCTIVITY MAY BE SLACKENING CIRCADIAN RHYTHMS STUDIES HAVE SHOWN SOME REMARKABLE THINGS ABOUT THE ROLE OF CIRCADIAN RHYTHMS IN OUR LIVES THE SENSES OF HEARING TASTE AND SMELL ARE MORE ACUTE AT CERTAIN TIMES OF THE DAY THIS CYCLE IS RELATED TO OUR HORMONES WHEN OUR BODIES RELEASE STEROIDS OUR SENSORY SHARPNESS FALLS OFF IN ADDITION STUDIES SHOW THAT YOUR ALLERGIES WILL PROBABLY AFFECT YOU MOST IN THE LATE MORNING WHICH IS WHEN DRUGS LIKE ANTIHISTAMINES AND ASPIRIN HAVE THEIR MOST POTENT AND ENDURING EFFECTS AND IF YOU HAVE ONLY ONE MEAL A DAY OF 2000 CALORIES YOU WILL LOSE WEIGHT IF YOU EAT IT IN THE MORNING BUT GAIN WEIGHT IF YOU EAT IT AT NIGHT MONDAYS ARE CLEARLY NOT DAYS WHEN WE ARE PERKY UPBEAT AND RARING TO GO ON WHICH DAY OF THE WEEK THEN ARE OUR BODIES PRIMED FOR THEIR BEST PERFORMANCE WE'VE ALL HEARD RUMORS TO THE EFFECT THAT WE SHOULD NEVER BUY A CAR MANUFACTURED ON A MONDAY OR A FRIDAY EVEN PRODUCTIVITY PROFESSIONALS CONFIRM THIS AND AT LEAST ONE STUDY REVEALS THAT TUESDAYS ARE FELT TO BE OUR MOST PRODUCTIVE DAY SEX MALE AND FEMALE BRAINS ARE PHYSIOLOGICALLY DIFFERENT AND GOVERN THE BODIES THEY ARE HOUSED IN DIFFERENTLY A MAN'S BLOOD PRESSURE IS HIGHEST WHEN HE'S ANGRY A WOMAN'S WHEN SHE'S ANXIOUS MEN ARE MORE SPATIALLY ADEPT WOMEN ARE MORE ORIENTED TO RELATIONSHIPS MANY MORE WOMEN CAN HEAR THE HIGHPITCHED SOUNDS MADE BY SOME VIDEODISPLAY TERMINALS THAN CAN MEN MUCH ABOUT WHAT MAKES THE SEXES DIFFERENT CAUSES MISUNDERSTANDINGS STRESS AND UNDERPRODUCTIVITY IN THE WORKPLACE LEARNING HOW HUMANS CAN BEST ABSORB TRAINING MATERIALS IS UNFORTUNATELY NOT THE BASIS FOR HOW MOST OF THOSE MATERIALS ARE DESIGNED WHETHER WE ARE USING ALL OR PART OF OUR INTELLIGENCE IS A FUNCTION OF HOW WE ARE CHALLENGED TO THINK THERE ARE MANY MORE IMPORTANT WAYS IN WHICH INDIVIDUAL HUMAN BIOLOGY AND THE WORKPLACE INTERACT AND OFTEN CLASH AS A CONSEQUENCE EMOTIONAL AND PHYSICAL STRESSES ARE ELEVATED AND WORK IS ADVERSELY AFFECTED MANAGERS BY PAYING MORE ATTENTION TO EMERGING DISCOVERIES ABOUT HUMAN BIOLOGY CAN MORE EFFECTIVELY ADDRESS THE CURRENT CRISES IN HEALTHCARE COSTS AND PRODUCTIVITY AND INDIVIDUALS CAN RESOLVE OR AVOID SERIOUS PROBLEMS WORK HEALTHIER AND HAPPIER AND FEEL BETTER ABOUT THEMSELVES THEIR RELATIONSHIPS AND THEIR OFFICE ENVIRONMENT MS WEINER IS A NEW YORKBASED CONSULTANT AND THE COAUTHOR WITH ARNOLD BROWN OF OFFICE BIOLOGY MASTERMEDIA 1993 SEE RELATED LETTER LETTERS TO THE EDITOR LIGHTING THE WAY TO OFFICE EFFICIENCY WSJ JUNE 30 1993 9306140031 YY93 MM06 9306300071 930630 BUSINESS BRIEF IMC FERTILIZER GROUP INC REARRANGEMENT OF FINANCING REMOVES AUDITOR'S CONCERNS IMC FERTILIZER GROUP INC SCURRYING TO RESOLVE FINANCING DIFFICULTIES BEFORE TODAY SAID IT COMPLETED THE PLACEMENT OF 260 MILLION SENIOR NOTES WITH INSTITUTIONAL BUYERS THE NORTHBROOK ILL MAKER OF CHEMICAL FERTILIZERS ALSO SAID IT NEGOTIATED A NEW 100 MILLION REVOLVING CREDIT AGREEMENT WITH A GROUP OF BANKS AND AMENDED ITS 220 MILLION OF 1125 NOTES WITH PRUDENTIAL INSURANCE CO OF AMERICA AS A RESULT ERNST & YOUNG ITS AUDITOR REMOVED A RECENT MODIFICATION TO THE COMPANY'S 1992 FINANCIAL STATEMENTS THAT RAISED CONCERNS ABOUT THE COMPANY'S ABILITY TO CONTINUE AS A GOING CONCERN PROCEEDS FROM THE NOTE SALE WILL BE USED TO PAY 606 MILLION DUE TODAY TO ANGUS CHEMICAL CO A UNIT OF ALBERTA NATURAL GAS CO AND ITS INSURER IN CONNECTION WITH A RECENT LITIGATION SETTLEMENT TO REPAY 100 MILLION OF BANK BORROWINGS AND TO REPURCHASE 50 MILLION OF RECEIVABLES THE SENIOR NOTES CONSIST OF 135 MILLION OF 10125 NOTES DUE 2001 AND 125 MILLION OF 1075 NOTES DUE 2003 9306300070 930630 BUSINESS BRIEF UAL CORP UNITED AIR TO DISCONTINUE SERVICE AT SIX US LOCATIONS UAL CORP'S UNITED AIRLINES UNIT SAID IT WILL DISCONTINUE SERVICE SEPT 8 AT SIX US LOCATIONS AS PART OF ITS OVERALL COSTREDUCTION PROGRAM THE CARRIER SAID IT WILL DROP SERVICE AT BANGOR MAINE FARGO ND FRESNO CALIF GREAT FALLS MONT HUNTSVILLE ALA AND SIOUX CITY IOWA THE COMPANY SAID IT ANNOUNCED THE ACTION WITH DEEP REGRET BUT IT CONTENDED THAT THE ECONOMIC REALITY IS THAT WE HAVE SUSTAINED A VERY LARGE FINANCIAL LOSS AT THESE CITIES OVER THE PAST FIVE YEARS WE SIMPLY CANNOT WAIT ANY LONGER FOR A HOPEDFOR TURNAROUND AND RECOVERY UNITED CURRENTLY OPERATES 30 FLIGHTS TO AND FROM THE SIX LOCATIONS THE AIRLINE DISCLOSED EARLIER THIS WEEK THAT IT PLANS TO CUT DOMESTIC CAPACITY BY A STEEPER THAN PREVIOUSLY PLANNED 5 AND IT CUT BACK ITS OVERSEAS GROWTH PLANS 9306300069 930630 BUSINESS BRIEF LIFETIME PRODUCTS INC TOP EXECUTIVE BIG HOLDER BUY TWO COMPANY UNITS A TOP EXECUTIVE AND MAJOR SHAREHOLDER OF LIFETIME PRODUCTS INC DALLAS WERE THE BUYERS OF TWO OF THE COMPANY'S SUBSIDIARIES IN A TRANSACTION REPORTED EARLIER THIS MONTH ACCORDING TO A SECURITIES AND EXCHANGE COMMISSION FILING ON JUNE 9 THE ONCEHIGHFLYING MARKETER OF TRIPLEEDGED WINDSHIELD WIPERS SAID THAT UNNAMED BUYERS HAD ACQUIRED LIFETIME AUTOMOTIVE INC AND LIFETIME COSMETICS INC THE PRICE WASN'T DISCLOSED ALTHOUGH AT THE TIME THE COMPANY SAID THE TRANSACTION WOULD RESULT IN A 13 MILLION ONETIME NONCASH GAIN AND REDUCE ITS DEBT ABOUT 17 MILLION IN SEC DOCUMENTS FILED JUNE 11 THE COMPANY DISCLOSED THAT THE BUYERS WERE JENNIFER P RUNYEON LIFETIME PRODUCTS' CHIEF EXECUTIVE OFFICER ANNA WENGER A MAJOR HOLDER WHO IS MARRIED TO LIFETIME PRODUCTS CHAIRMAN CC FICHTNER AND ALPHA MARKETING CONCEPTS INC A COMPANY OWNED AND CONTROLLED BY MS WENGER AND MR FICHTNER THE SEC DISCLOSURE WAS REPORTED BY THE DALLAS MORNING NEWS 9306300068 930630 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 2 3/4 LOW 2 13/16 NEAR CLOSING BID 2 7/8 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 315 30 TO 44 DAYS 317 45 TO 98 DAYS 322 99 TO 149 DAYS 324 150 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 321 30 DAYS 323 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 268 TWO MONTHS 273 THREE MONTHS 290 SIX MONTHS 313 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 3125 ONE MONTH 320 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 308 60 DAYS 312 90 DAYS 316 120 DAYS 318 150 DAYS 325 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 9/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JUNE 28 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 305 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 699 60 DAYS 706 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 695 60 DAYS 705 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 267 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306300067 930630 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT AMERICAN GENERAL FINANCE CORP 150 MILLION OF NOTES DUE JULY 1 2000 PRICED AS 5875S AT 99711 TO YIELD 5926 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 52 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES AMERICAN GENERAL FINANCE IS A SUBSIDIARY OF AMERICAN GENERAL CORP BANCO NACIONAL DE COMERCIO EXTERIOR 200 MILLION OF SENIOR NOTES DUE JULY 1 2000 PRICED AS 75S AT 99682 TO YIELD 7559 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 215 BASIS POINTS ABOVE TREASURYS RATED BA2 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO BOEING CO 250 MILLION OF DEBENTURES DUE JUNE 15 2025 PRICED AS 725S AT 98768 TO YIELD 735 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 069 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP FEDERAL HOME LOAN BANK 200 MILLION OF STEPUP NOTES DUE JULY 12 1996 PRICED AS 4S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 55 BASIS POINTS ABOVE THE ONEYEAR TREASURY BILL AFTER ONE YEAR THE COUPON INCREASES TO 48 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF STEPUP NOTES DUE JULY 13 1998 WAS PRICED AS 46S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WILL STEP UP TO 576 AFTER TWO YEARS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS FUTURE HEALTHCARE INC 6 MILLION OF 55 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 OFFERED IN A PRIVATE PLACEMENT THROUGH GLASER CAPITAL CORP GREAT WESTERN FINANCIAL CORP 200 MILLION OF SENIOR NOTES DUE JULY 1 2000 PRICED AS 6375S AT 99333 TO YIELD 6495 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 109 PERCENTAGE POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO POHANG IRON & STEEL CO 200 MILLION OF NOTES DUE JULY 1 2003 PRICED AS 6625S AT 99204 TO YIELD 6736 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 097 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC TIMES MIRROR CO 100 MILLION OF DEBENTURES DUE JULY 1 2023 PRICED AS 7375S AT 99734 TO YIELD 7397 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE DEBENTURES WERE PRICED AT A SPREAD OF 73 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO USX CORP 350 MILLION OF BONDS DUE JULY 15 1998 PRICED AS 6375S AT 99934 TO YIELD 639 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 135 PERCENTAGE POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP USX CORP 250 MILLION OF DEBENTURES DUE JULY 15 2023 PRICED AS 8125S AT 98724 TO YIELD 824 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 157 PERCENTAGE POINTS ABOVE THE TREASURY 30YEAR BOND RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP ABT BUILDING PRODUCTS CORP INITIAL OFFERING OF 28 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ANCHOR BANCORP INC FIVE MILLION COMMON SHARES PRICED AT 1250 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC ESPIRITO SANTO FINANCIAL HOLDING SA INITIAL OFFERING OF 27 MILLION AMERICAN DESPOSITARY SHARES PRICED AT 29 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO HECLA MINING CO TWO MILLION SHARES OF SERIES B CUMULATIVE CONVERTIBLE PREFERRED STOCK WHICH PAYS A 7 DIVIDEND ANNUALLY AND IS CONVERTIBLE INTO THE COMPANY'S COMMON STOCK ISSUED AT 50 APIECE THROUGH UNDERWRITERS MERRILL LYNCH & CO AND SALOMON BROTHERS INC MARINE DRILLING CO 10 MILLION COMMON SHARES PRICED AT 6 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS RHONEPOULENC 14 MILLION SHARES OF OVERSEAS SERIES A CUMULATIVE GUARANTEED PREFERRED STOCK PRICED AT 25 APIECE WITH A 8125 DIVIDEND THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE ISSUE CARRIES A SINGLEA3 RATING FROM MOODY'S AND A TRIPLEB RATING FROM S&P SOUTHERN CALIFORNIA WATER CO 500000 COMMON SHARES PRICED AT 45 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO QUALCOMM INC 25 MILLION SHARES OFFERED AT 55 APIECE THROUGH LEAD UNDERWRITER SHEARSON LEHMAN BROTHERS INC COLORADO 350 MILLION OF TAX AND REVENUE ANTICIPATION NOTES WON IN COMPETITIVE BIDDING BY A NORWEST CORP UNIT AND BY A GOLDMAN SACHS & CO GROUP THE NORWEST UNIT WON 10 MILLION OF THE DEAL AT A 29 COUPON AND GOLDMAN WON 240 MILLION AT 2636 AND 100 MILLION AT 2606 THE NOTES ARE DUE JUNE 27 1994 AND BOTH GROUPS REOFFERED THEM AT 255 FLORIDA BOARD OF EDUCATION 300 MILLION GENERALOBLIGATION CAPITALOUTLAY BONDS WITH MATURITIES RANGING FROM JUNE 1 1994 TO 2023 WON IN COMPETITIVE BIDDING BY A GROUP LED BY DILLON READ & CO WITH A BID SETTING TRUE INTEREST COST AT 5397 THE BONDS RATED DOUBLEA BY BOTH MOODY'S AND S&P WERE REOFFERED TO YIELD FROM 25 IN 1994 TO 555 IN 2023 PENNSYLVANIA 7628 MILLION CERTIFICATES OF PARTICIPATION REOFFERED BY A PRUDENTIAL SECURITIES GROUP TO YIELD FROM 35 IN 1995 TO 5625 IN 2015 THE 65 MILLION IN SECURITIES THAT MATURE JULY 1 1994 WERE REOFFERED BY SEALED BID THE CERTIFICATES ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P BHF FINANCE NETHERLANDS BV GERMAN PARENT 100 MILLION MARKS OF 65 EUROBONDS DUE JULY 28 2000 AT ISSUE PRICE 100875 VIA BERLINER HANDELS UND FRANKFURTER BANK FEES UNDISCLOSED EUROPEAN INVESTMENT BANK SUPRANATIONAL 15 BILLION SPANISH PESETAS OF 985 MATADOR BONDS DUE JULY 20 2003 AT ISSUE PRICE 10137 VIA BANCO ESPANOL DE CREDITO SA AND SENIOR COLEAD CREDIT COMMERCIAL DE FRANCE BONDS YIELD 991 ANNUAL AT BREAKEVEN PRICE OF 9962 FOR COMANAGERS A SPREAD OF 23 BASIS POINTS BELOW THE BENCHMARK 10YEAR SPANISH GOVERNMENT BOND FEES 175 POINTS FOR COMANAGERS 1875 POINTS FOR LEAD MANAGERS KOREA DEVELOPMENT BANK REPUBLIC OF KOREA AGENCY 10 BILLION YEN OF 4 EUROBONDS DUE NOV 15 1995 AT ISSUE AND REOFFER PRICE PAR VIA BANK OF TOKYO CAPITAL MARKETS LTD BONDS YIELD 4 ANNUAL FEES 02 POINT MITSUBISHI KASEI UK PLC JAPANESE PARENT 50 MILLION OF 575 EUROBONDS DUE JULY 15 1998 AT ISSUE AND REOFFER PRICE 10025 VIA MITSUBISHI FINANCE INTERNATIONAL PLC BONDS YIELD 569 ANNUAL A SPREAD OF 55 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE KEEPWELL AGREEMENT WITH MITSUBISHI KASEI LTD FEES 025 POINT OSAKA GAS CO JAPAN 10 BILLION YEN OF 495 EUROBONDS DUE NOV 5 1999 AT ISSUE PRICE 101625 VIA DAIWA BANK CAPITAL MANAGEMENT LTD REOFFERED AT 100075 TO YIELD 493 ANNUAL FEES 1875 POINTS SOCIETE GENERALE FRANCE TWO BILLION FRENCH FRANCS OF 6 EUROBONDS DUE AUG 2 1995 VIA SOCIETE GENERALE REOFFERED AT 9967 TO YIELD 618 A MARGIN OF 30 BASIS POINTS ABOVE FRENCH TREASURY NOTE DUE NOVEMBER 1995 FEES 01875 POINTS THOMSON BRANDT INTERNATIONAL NV FRENCH PARENT ONE BILLION FRENCH FRANCS OF 7 EUROBONDS DUE JULY 28 2000 AT ISSUE PRICE 1011 VIA SOCIETE GENERALE REOFFERED AT 99575 TO YIELD 708 A MARGIN OF 67 BASIS POINTS ABOVE COMPARABLE FRENCH TREASURY GUARANTOR THOMSON SA FEES 1875 POINTS TOKYO GAS CO JAPAN 350 MILLION OF 55 EUROBONDS DUE JULY 21 1998 AT ISSUE PRICE 101435 VIA MERRILL LYNCH INTERNATIONAL LTD AND IBJ INTERNATIONAL LTD REOFFERED AT 99835 TO YIELD 554 ANNUAL A SPREAD OF 40 BASIS POINTS ABOVE 5125 US TREASURY DUE JUNE 1998 FEES 1875 POINTS 9306300066 930630 BUSINESS BRIEF SHAWMUT NATIONAL CORP BANK REALIZES 655 OF VALUE OF REAL ESTATE ASSETS IN SALE SHAWMUT NATIONAL CORP SAID IT SOLD COMMERCIAL AND RESIDENTIAL REAL ESTATE ASSETS WITH A CARRYING VALUE OF 3098 MILLION RECEIVING 203 MILLION OR 655 OF ITS VALUE IN THE SALE SHAWMUT SAID IT SOLD THE COMMERCIAL REAL ESTATE ASSETS VALUED AT 2899 MILLION TO WHITEHALL STREET REAL ESTATE LP III CONTROLLED BY GOLDMAN SACHS & CO AND THE JE ROBERT COS THE RESIDENTIAL REAL ESTATE ASSETS VALUED AT 199 MILLION WENT TO BERKELEY FEDERAL BANK & TRUST FSB OF WEST PALM BEACH FLA THE HARTFORD CONN BANKING COMPANY SAID THAT WHILE THE SALE WON'T HAVE ANY MATERIAL IMPACT ON SECONDQUARTER RESULTS IT WILL RESULT IN A 1086 MILLION CHARGE TO THE LOAN LOSS RESERVE SHAWMUT ALSO SAID THAT ON A PRO FORMA BASIS THE RATIO OF RESERVES TO NONPERFORMING LOANS IMPROVED TO 162 AS OF MARCH 31 COMPARED WITH THE ACTUAL 1387 THE COMPANY SAID PRO FORMA PROBLEM ASSETS WOULD HAVE BEEN 401 OF TOTAL LOANS AND FORECLOSED PROPERTIES INSTEAD OF 512 AS REPORTED FOR MARCH 31 9306300065 930630 BUSINESS BRIEF EASTMAN KODAK CO SINGLEUSE CAMERA UNVEILED ZOOMLENS MODEL IS NEXT EASTMAN KODAK CO INTRODUCED A SINGLEUSE CAMERA AND ANNOUNCED PLANS TO SELL A ZOOMLENS CAMERA NEXT MONTH MARKING ITS ENTRY INTO THE HIGHEND CAMERA MARKET THE ZOOMLENS CAMERA WILL BE MADE BY MINOLTA AT A LIST PRICE OF 199 EACH OR AN ESTIMATED RETAIL OF 150 THE NEW CAMERA IS AMONG THE MOST EXPENSIVE THE ROCHESTER NY PHOTOGRAPHY CHEMICAL AND HEALTHCARE CONCERN HAS EVER OFFERED A KODAK SPOKESMAN SAID IT CONSIDERS THE NEW MODEL AN ENTRY PRODUCT IN THE POINTANDSHOOT ZOOM MARKET IMPLYING THAT OTHER MODELS WILL BE INTRODUCED LATER KODAK'S NEW SINGLEUSE CAMERA TARGETED AT FOOTBALL FANS TAKES KODAK'S OLD SLOGAN YOU PUSH THE BUTTON WE DO THE REST ONE STEP FURTHER EACH CAMERA INCLUDES A FRAME OF FILM THAT ALREADY HAS BEEN EXPOSED TO AN IMAGE OF A NATIONAL FOOTBALL LEAGUE TEAM THE CONSUMER USES THE REST OF THE FILM AND WHEN IT'S DEVELOPED PHOTOS WILL INCLUDE THE FOOTBALL PICTURE ALONG WITH THE REST OF THE PRINTS 9306300064 930630 GTE CORP UNIT SETS AGREEMENT STAMFORD CONN GTE CORP'S GTE SPACENET UNIT SAID IT AGREED TO PROVIDE SATELLITE COMMUNICATIONS SERVICES TO POLISH BANKS THE NETWORK WHICH WILL USE THE POLISH PRESS AGENCY'S SPACENET HUB EARTH STATION WILL BEGIN TESTS IN 400 LOCATIONS THIS YEAR A POLISH DATA SERVICES COMPANY BANKING TELECOMMUNICATIONS ENTERPRISE OF WARSAW OR TELBANK WILL LINK POLISH BANKS TO GTE'S SATELLITE SERVICES THE NETWORK IS THE FIRST OF ITS KIND IN POLAND GTE SAID ANDREZJ CICHY TELBANK'S CHAIRMAN SAID THE NETWORK WILL BECOME THE BASIC MEANS OF COMMUNICATION FOR POLISH BANKS AND GOVERNMENT OFFICES 9306300063 930630 WHAT'S NEWS WORLDWIDE A US JET FIRED AT AN IRAQI ARTILLERY SITE BUT CLINTON PLAYED DOWN THE INCIDENT THE ACTION WAS TRIGGERED WHEN RADAR FROM THE SITE TARGETED TWO US AIRCRAFT PATROLLING A NOFLY ZONE OVER SOUTHERN IRAQ THE PENTAGON SAID ALTHOUGH IT WAS THE FIRST SUCH INCIDENT SINCE APRIL PRESIDENT CLINTON TOLD REPORTERS I WOULDN'T READ TOO MUCH INTO IT EXPLAINING IT WAS STANDARD DEFENSE PROCEDURE IN BAGHDAD MEANWHILE IRAQI ANTIAIRCRAFT GUNNERS FIRED INTO THE AIR OVER THE STILLEDGY CAPITAL THE IRAQI GOVERNMENT DESPITE AN INTERNATIONAL EMBARGO IS POISED TO REBUILD ITS NUCLEAR ARMS PROGRAM USING ITS OWN RESOURCES AND HELP FROM OVERSEAS WITNESSES TOLD A HOUSE PANEL THE SECURITY COUNCIL FAILED TO PASS A USBACKED RESOLUTION TO EXEMPT BOSNIA FROM A UN ARMS EMBARGO THE VOTE WAS SIX IN FAVOR WITH NONE AGAINST AND NINE ABSTENTIONS THE RESOLUTION WHICH ITS BACKERS SAID WOULD HAVE ALLOWED BOSNIA'S MUSLIMS TO DEFEND THEMSELVES AGAINST SERBS AND CROATS REQUIRED A MINIMUM OF NINE VOTES AN INDICTMENT IS IMMINENT OF AN EGYPTIAN IMPRISONED IN UPSTATE NEW YORK WHO AUTHORITIES BELIEVE HELPED PLAN THE WORLD TRADE CENTER BOMBING POLICE SOURCES TOLD REUTER NEWS AGENCY ELSAYED NOSAIR SENTENCED IN CONNECTION WITH THE 1990 SLAYING OF RADICAL RABBI KAHANE ALMOST CERTAINLY WILL BE CHARGED WITH CONSPIRACY SOURCES SAID SUDANESE LEADER BASHIR DENIED THAT HIS GOVERNMENT HAD ANY LINKS TO FIVE SUDANESE MEN ARRESTED LAST THURSDAY ON CHARGES OF PLOTTING TO BOMB THE UN'S HEADQUARTERS AND OTHER NEW YORK TARGETS THE FIVE WERE AMONG EIGHT SUSPECTS ARRESTED ON CHARGES RELATING TO AN ALLEGED TERRORIST RING RECORD RAINS ARE DRENCHING THE MIDWEST BREADBASKET BUT IT'S TOO EARLY TO SAY THE WEATHER WILL RESULT IN HIGHER FOOD PRICES MEANWHILE PLANTINGS OF CORN AND SOYBEANS ARE DOWN AND LONG STRETCHES OF THE MISSISSIPPI RIVER ARE CLOSED TO BARGE SHIPMENTS OF FEED GRAINS HAITI'S MILITARY LEADER MADE A PLEA FOR A PERSONAL MEETING WITH OUSTED PRESIDENT ARISTIDE BUT A SPOKESMAN FOR ARISTIDE SAID HE WOULD ONLY MEET WITH GEN CEDRAS AFTER AN AGREEMENT IS HAMMERED OUT FOR RESTORING DEMOCRACY IN HAITI THE TWO MEN HAVE BEEN HOLDING DISCUSSIONS SEPARATELY WITH A UN MEDIATOR IN NEW YORK A HOUSESENATE CONFERENCE AGREED TO PROVIDE MODEST FUNDING INCREASES FOR SUMMERJOB AND SMALLBUSINESSLOAN PROGRAMS AS PART OF A SUPPLEMENTAL SPENDING BILL CONTAINING REMNANTS OF CLINTON'S ECONOMIC STIMULUS PLAN SEN METZENBAUM ANNOUNCED THAT HE WON'T SEEK REELECTION FOR A FOURTH SIXYEAR TERM NEXT YEAR THE 76YEAROLD OHIO DEMOCRAT ONE OF THE SENATE'S MOST LIBERAL AND OUTSPOKEN MEMBERS SAID HE WANTED TO SPEND MORE TIME WITH HIS FAMILY UNDERWATER EXPLORERS ARE VYING WITH INSURERS AT A NORFOLK VA TRIAL THAT OPENED YESTERDAY OVER HOW TO DIVIDE UP A TREASURE OF GOLD FROM A SHIP THAT SANK 136 YEARS AGO A JUDGE IN IDAHO BARRED THE DEPARTMENT OF ENERGY FROM SENDING RADIOACTIVE WASTE FROM SHIPS TO A NUCLEAR DUMP IN THE STATE SAYING THE AGENCY BROKE ENVIRONMENTAL LAWS AND MAY HAVE LIED THE AGENCY HAS SAID THE SITE IS THE ONLY SUITABLE ONE RAISING QUESTIONS ABOUT WHERE THE WASTE WILL BE STORED JAPANESE PROSECUTORS ARRESTED EXECUTIVES OF FOUR CONTRACTING COMPANIES AND THE MAYOR OF SENDAI A SEAPORT ON SUSPICION OF BRIBERY IN THE LATEST CRACKDOWN ON THE TIES BETWEEN BUILDING CONCERNS AND POLITICIANS CHINA'S CENTRAL BANK CHIEF WAS FORCED TO RESIGN TO TAKE RESPONSIBILITY FOR RUNAWAY MONEYSUPPLY GROWTH AND CHAOS IN THE FINANCIAL SYSTEM THE DISMISSAL HASN'T BEEN OFFICIALLY ANNOUNCED ARTILLERY AND ROCKET DUELS ERUPTED IN SOUTH LEBANON KILLING A CHILD AND WOUNDING 10 PEOPLE IN THE WORST ROUND OF VIOLENCE IN WEEKS SECURITY SOURCES SAID PROIRANIAN REBELS LAUNCHED AT LEAST SEVEN ATTACKS AND ISRAELI GUNNERS HIT BACK WITH 200 SHELLS BLACK SEA NAVAL OFFICERS THREATENED A MUTINY AGAINST THE PRESIDENTS OF UKRAINE AND RUSSIA SAYING THEY WOULDN'T CARRY OUT AN ACCORD TO SPLIT THE BLACK SEA FLEET THE OFFICERS CALLED FOR THE 300SHIP FLEET TO BE PLACED UNDER RUSSIAN JURISDICTION 9306300062 930630 CREDIT RATINGS AETNA LIFE & CASUALTY CO'S SENIOR DEBT RATING WAS LOWERED BY STANDARD & POOR'S CORP AS WELL AS THE CLAIMSPAYING ABILITY RATING OF THE COMPANY'S PROPERTY AND CASUALTY BUSINESS S&P SAID THE DOWNGRADINGS REFLECT THE PROPERTY AND CASUALTY COMPANY'S POOR PERFORMANCE LAST YEAR AND THE EXPECTATION THAT EARNINGS WILL REMAIN WEAK THIS YEAR S&P ALSO CITED DETERIORATION IN THE COMPANY'S PORTFOLIO OF MORTGAGE LOANS BOTH RATINGS WERE LOWERED TO DOUBLEAMINUS FROM DOUBLEA HARTFORDBASED AETNA DISAGREED WITH THE ACTION SAYING S&P DIDN'T CREDIT AETNA FOR PUTTING UP MORE RESERVES AGAINST POSSIBLE PROPERTY AND CASUALTY LOSSES THAN OTHER COMPANIES AETNA ADDED 466 MILLION TO RESERVES LAST YEAR IN A MOVE THAT REDUCED PROFIT BUT STRENGTHENED THE BALANCE SHEET S&P AFFIRMED THE RATINGS OF AETNA'S LIFE INSURANCE OPERATIONS 9306300060 930630 RULE OF LAW COURT DEALS A BLOW TO RACIAL GERRYMANDERING BY ELIZABETH MCCAUGHEY ARE VOTERS REPRESENTED BY CONGRESSMEN FROM OTHER DISTRICTS FOR WHOM THEY CANNOT VOTE AFTER SAYING YES FOR 15 YEARS MONDAY THE SUPREME COURT SAW THE FOLLY OF THAT ANSWER AND RENEWED ITS COMMITMENT TO THE PRINCIPLES OF AMERICAN DEMOCRACY IN SHAW V RENO A 54 MAJORITY REFUSED TO SANCTION THE NOTORIOUSLY GERRYMANDERED 12TH CONGRESSIONAL DISTRICT IN NORTH CAROLINA OR THE POLITICAL THEORY USED TO DEFEND IT VIRTUAL REPRESENTATION IN 1765 WHEN BRITAIN TRIED TO TAX THE AMERICAN COLONIALISTS THEY PROTESTED NO TAXATION WITHOUT REPRESENTATION BRITAIN INSISTED THAT AMERICANS WERE VIRTUALLY REPRESENTED IN PARLIAMENT THOUGH THEY HAD NO RIGHT TO ELECT ITS MEMBERS THE AMERICANS RESISTED AND FOUGHT A REVOLUTION ON THE PRINCIPLE THAT BEING REPRESENTED MEANS HAVING A SAY IN WHO IS CHOSEN TO BE ONE'S REPRESENTATIVE BUT 15 YEARS AGO THE COURT RESORTED TO THE LONGDISCREDITED THEORY OF VIRTUAL REPRESENTATION TO DEFEND RACECONSCIOUS DISTRICTING UNDER THE VOTING RIGHTS ACT THE VOTING RIGHTS ACT WAS PASSED IN 1965 TO STRIKE DOWN LITERACY TESTS AND OTHER BLATANTLY DISCRIMINATORY DEVICES THAT UNJUSTLY KEPT SOUTHERN BLACKS FROM VOTING IN LATER DECADES THE ACT WAS TRANSFORMED BY CONGRESS THE JUSTICE DEPARTMENT AND THE FEDERAL COURTS INTO A PROGRAM OF RACIAL REDISTRICTING THE JUSTICE DEPARTMENT ROUTINELY REQUIRES STATE LEGISLATURES TO CARVE OUT THE MAXIMUM NUMBER OF SAFE DISTRICTS WHERE BLACKS AND OTHER MINORITY VOTERS VASTLY OUTNUMBER WHITES THE GOAL MORE MINORITIES IN PUBLIC OFFICE IS IMPORTANT FOR THE POLITICAL PROCESS TO BE SEEN AS LEGITIMATE PEOPLE OF ALL RACES MUST WIN OFFICE BUT THE REASONING THE COURT USED TO DEFEND RACIAL GERRYMANDERING VIRTUAL REPRESENTATION VIOLATED THE PRINCIPLES OF AMERICAN DEMOCRACY THAT REASONING WAS FIRST USED IN 1977 WHEN HASIDIC JEWS IN THE WILLIAMSBURG SECTION OF BROOKLYN WHO HAD ALWAYS VOTED AS A COMMUNITY WERE PUSHED INTO SEVERAL SEPARATE DISTRICTS DESIGNATED FOR BLACKS AND HISPANICS THE SUPREME COURT RULED IN THAT CASE UNITED JEWISH ORGANIZATIONS V CAREY THAT HASIDIC VOTERS WERE NOT UNDERREPRESENTED REGARDLESS OF HOW UNHEARD AND IGNORED THEY CLAIMED TO BE IN THE NEW DISTRICTS BECAUSE WHITE VOTERS AS A GROUP CONTROLLED A FAIR PROPORTION OF THE COUNTY'S CONGRESSIONAL SEATS WHITE VOTERS IN MINORITY DISTRICTS SAID THE COURT WILL BE REPRESENTED BY LEGISLATORS ELECTED FROM MAJORITY WHITE DISTRICTS THOUGH THEY CANNOT PARTICIPATE IN THEIR ELECTION THAT WAS THE POLITICAL THEORY REPUDIATED MONDAY IN SHAW V RENO THE US DISTRICT COURT HAD RELIED ON IT TO SANCTION NORTH CAROLINA'S SERPENTINE 12TH CONGRESSIONAL DISTRICT BUT THE JUSTICES DECLARED THAT SUCH A NOTION REINFORCES THE CRUDE AND IMPERMISSIBLE STEREOTYPE THAT MEMBERS OF THE SAME RACIAL GROUP REGARDLESS OF THEIR AGE EDUCATION ECONOMIC STATUS OR THE COMMUNITY IN WHICH THEY LIVE THINK ALIKE SHARE THE SAME POLITICAL INTERESTS AND WILL PREFER THE SAME CANDIDATES AT THE POLLS WRITING FOR THE MAJORITY JUSTICE SANDRA DAY O'CONNOR LASHED OUT AT JUSTICE DAVID SOUTER IN THE DISSENT FOR CONTINUING TO EMPLOY THAT THEORY JUSTICE SOUTER ARGUED THAT A DISTRICTING PLAN SUCH AS NORTH CAROLINA'S DID NOT VIOLATE THE CONSTITUTION UNLESS IT DILUTED A RACIAL GROUP'S FAIR SHARE OF VOTING POWER HE DEEMED THE PLAN HARMLESS SO LONG AS IT ACHIEVED PROPORTIONAL REPRESENTATION OF THE RACES STATEWIDE BUT JUSTICE O'CONNOR EXPLAINED HOW AN INDIVIDUAL VOTER ISOLATED IN AN ELECTORAL DISTRICT DELIBERATELY CREATED FOR MEMBERS OF A DIFFERENT RACE COULD BE DEPRIVED OF POLITICAL REPRESENTATION WHEN A DISTRICT OBVIOUSLY IS CREATED SOLELY TO EFFECTUATE THE PERCEIVED COMMON INTERESTS OF ONE RACIAL GROUP ELECTED OFFICIALS ARE MORE LIKELY TO BELIEVE THAT THEIR PRIMARY OBLIGATION IS TO REPRESENT ONLY THE MEMBERS OF THAT GROUP RATHER THAN THEIR CONSTITUENCY AS A WHOLE NO ONE LOOKING AT NORTH CAROLINA'S POLITICAL MAP COULD MISS JUSTICE O'CONNOR'S POINT AFTER THE 1990 CENSUS THE JUSTICE DEPARTMENT ORDERED NORTH CAROLINA WITH ITS 22 BLACK POPULATION TO MAKE TWO OF ITS 12 CONGRESSIONAL DISTRICTS SAFE FOR BLACK CANDIDATES IN RESPONSE THE STATE LEGISLATURE CREATED THE 12TH DISTRICT BARELY AS WIDE AS A HIGHWAY IN PLACES IT SNAKES FOR 160 MILES THROUGH 12 COUNTIES TAKING IN TOBACCO FARMS IN DURHAM FURNITURE FACTORIES IN HIGH POINT BANKS AND SHOPPING CENTERS IN CHARLOTTE AND TEXTILE MILLS IN GASTONIA IN DRAWING THE ELECTION DISTRICTS THE STATE LEGISLATURE IGNORED CUSTOMARY GUIDELINES WHICH CALL FOR COMPACT DISTRICTS OF VOTERS WITH COMMON INTERESTS INSTEAD OF EMBRACING WHOLE COMMUNITIES THE DISTRICT INCLUDES SLIVERS OF MANY UNRELATED AREAS MOST 12TH DISTRICT VOTERS HAVE ONLY ONE THING IN COMMON BLACK SKIN WHITE VOTERS SQUEEZED INTO THE DISTRICT SUED NOT FOR THE RIGHT TO ELECT A WHITE CANDIDATE BUT FOR THE RIGHT TO VOTE IN A DISTRICT DRAWN IN A GEOGRAPHICALLY SENSIBLE WAY WHERE OTHER VOTERS BLACK OR WHITE MIGHT SHARE LOCAL CONCERNS THOSE WHO BROUGHT THE SUIT SAID THE MAP MADE IT CLEAR THAT THE 12TH DISTRICT WAS INTENDED TO HAVE A RACIAL RATHER THAN A GEOGRAPHIC CONSTITUENCY DISTRICTING BY NEIGHBORHOODS HAS BEEN THE ESSENCE OF OUR POLITICAL SYSTEM BECAUSE NEIGHBORS HAVE COMMON INTERESTS SUCH AS IMPROVING THEIR SCHOOLS AND KEEPING THEIR FACTORIES RUNNING THE LOWER COURT APPLIED THE THEORY PUT FORWARD IN THE 1977 BROOKLYN CASE AND RULED THAT WHITE VOTERS IN THE 12TH DISTRICT HAD NO VALID GRIEVANCE BECAUSE WHITES AS A GROUP STATEWIDE CONTROLLED 10 DISTRICTS THE NORTH CAROLINA PLAN DEMONSTRABLY WILL NOT LEAD TO PROPORTIONAL UNDERREPRESENTATION OF WHITE VOTERS ON A STATEWIDE BASIS SAID THE LOWER COURT THAT REASONING MADE REPRESENTATION A RIGHT BELONGING TO RACIAL GROUPS RATHER THAN A FUNDAMENTAL RIGHT OF EVERY INDIVIDUAL THAT REASONING ALSO PRESUMED THAT ALL WHITES THINK ALIKE REGARDLESS OF THEIR ECONOMIC INTERESTS RELIGION OR WHERE THEY LIVE AND THAT ALL BLACKS THINK ALIKE TOO THIS IS RACIAL DETERMINISM MOST TROUBLING THAT REASONING MEANT THAT BEING REPRESENTED DOES NOT NECESSARILY INCLUDE VOTING FOR ONE'S REPRESENTATIVE JUSTICE O'CONNOR APPARENTLY UNCOMFORTABLE ABOUT DISCARDING PRECEDENT LABORED TO DISTINGUISH THE NORTH CAROLINA SUIT FROM THE BROOKLYN CASE BUT JUSTICE BYRON WHITE WAS ON THE MARK WHEN HE CHARACTERIZED ONE AS THE MIRROR OF THE OTHER IN SHAW V RENO THE HIGH COURT DEPARTED FUNDAMENTALLY FROM RECENT PRECEDENT AND REMAINED TRUE INSTEAD TO OUR MOST CHERISHED DEMOCRATIC PRINCIPLES TWO CENTURIES AGO AMERICANS DECIDED THAT ELECTION AND REPRESENTATION WENT HAND IN HAND AND BEING REPRESENTED MEANT TAKING PART IN CHOOSING ONE'S REPRESENTATIVE AMERICANS FOUGHT A WAR TO DEFEND THAT PRINCIPLE IN 1776 MONDAY THE SUPREME COURT AFFIRMED MS MCCAUGHEY IS A FELLOW AT THE MANHATTAN INSTITUTE 9306300059 930630 PRUDENTIAL SUES FLORIDA PRUDENTIAL INSURANCE CO OF AMERICA SUED FLORIDA OVER THE STATE'S ATTEMPTS TO BLOCK COMPANIES FROM CANCELING HOMEOWNERS' POLICIES THE LAWSUIT FILED IN FEDERAL COURT IN TALLAHASSEE CHARGES THE STATE WITH ILLEGALLY PREVENTING THE COMPANY FROM MANAGING ITS BUSINESS FLORIDA LAWMAKERS HAVE IMPOSED A 180DAY BAN ON THE CANCELLATION FOR HOMEOWNERS POLICIES THE BAN WOULD EXTEND THROUGH THE HURRICANE SEASON WHICH BEGAN JUNE 1 TO REDUCE ITS EXPOSURE TO HURRICANE CLAIMS PRUDENTIAL WANTS TO ALLOW 25000 HOMEOWNER POLICIES IN SOUTH FLORIDA TO LAPSE THE COMPANY WOULD CONTINUE TO INSURE 100000 HOMES ELSEWHERE IN FLORIDA FLORIDA OFFICIALS WEREN'T IMMEDIATELY AVAILABLE FOR COMMENT PRUDENTIAL INCURRED A LOSS OF 13 BILLION WHEN HURRICANE ANDREW HIT FLORIDA LAST AUGUST SEVERAL OTHER INSURERS ARE ALSO TRYING TO SLASH THEIR FLORIDA EXPOSURE WHICH HAS CREATED AN INSURANCE SHORTAGE IN THE STATE 9306300058 930617 DANGER INDOCTRINATION WAR ON DRUGS WAR ON PARENTS BY DANA MACK IN A BRIGHT AND AIRY SUBURBAN CLASSROOM SECONDGRADERS ARE INTRODUCED TO THE CONCEPT OF COPING PRETEND SAYS THE TEACHER THAT YOUR PET HAS DIED ARE YOU FEELING SAD NOW SHE SAYS LET'S SING A SONG TO MAKE US FEEL BETTER AND THE CHILDREN JOIN IN TWO ROUSING CHORUSES OF A FAMOUS TUNE IF YOU'RE SAD AND YOU KNOW IT SHED A TEAR SO GOES THE ART OF COPING WITH GRIEF AND SEPARATION SCENE FROM A BLACK COMEDY NO JUST AN ORDINARY EXERCISE AS DESCRIBED IN A SOCALLED COMPREHENSIVE HEALTH EDUCATION CURRICULUM MANDATED BY THE STATE OF CONNECTICUT AND TAUGHT IN HUNDREDS OF PUBLIC SCHOOL DISTRICTS THROUGHOUT THE COUNTRY THROUGH PUPPETRY SONG STORY FILM DRAMA AND GAMES THE HERE'S LOOKING AT YOU 2000 CURRICULUM OFFERS LESSONS FOR GRADESCHOOL CHILDREN IT PURPORTS TO BE ABOUT DRUG EDUCATION AND REFUSAL SKILLS BUT ITS MAJOR THRUST IS PURE BRAINWASHING AS PARENTS MY HUSBAND AND I FIRST BECAME AWARE OF THE 2000 PROGRAM AT THE DINNER TABLE ONE EVENING LAST FALL WHEN OUR SEVENYEAROLD CHILD SUDDENLY ASKED US IF WE WERE ALCOHOLICS I BEG YOUR PARDON MY HUSBAND ANSWERED POURING HIMSELF A GLASS OF SANCERRE YOU DRINK WINE SHE SAID IN DEFENSE OF HER QUESTION AND SOMETIMES YOU EVEN YELL AT ME APPARENTLY EARLIER THAT DAY A CUDDLY LITTLE PUPPET NAMED MIRANDA HAD TOLD THE SECONDGRADERS A STORY ABOUT HER UNCLE BUD LIKE MOST OF US UNCLE BUD OCCASIONALLY LOSES HIS PATIENCE WITH THE YOUNGER GENERATION BUT ONLY CLAIMS LITTLE MIRANDA WHEN HE HAS HAD A BOTTLE OF BEER OUR DAUGHTER INFORMED US NOT TO WORRY THAT SHE HAD NOTICED OUR HABIT LOTS OF PEOPLE SHE SAID CAN HELP ALCOHOLICS AND THEIR FAMILIES SURELY NOT CHILDREN THOUGH COUNTERED MY HUSBAND IN DISBELIEF OH YES OUR DAUGHTER REPLIED CONFIDENTLY IF A CHILD TELLS A TEACHER OR A FRIEND THEY WILL FIND SOMEONE TO HELP MY HUSBAND AS RESIGNED TO THE PURITANICAL IDIOSYNCRACIES OF ELEMENTARY SCHOOL TEACHERS AS HE IS CONVINCED OF THE PLEASURES OF GOOD WINE LET THIS LITTLE INCIDENT GO UNREMARKED HE URGED ME TO EXERCISE THE SAME DISCRETION BUT EVEN HE WAS ANNOYED WHEN AS PART OF A UNIT ON POISON CONTROL OUR DAUGHTER EXHORTED US TO COMB THROUGH EVERY INCH OF OUR HOUSE MAKING IT SAFE THAT MEANT INSPECTING FOR THE PRESENCE OF ALCOHOL NICOTINE AND CAFFEINE AS WELL AS AMMONIA AND MURIATIC ACID NO DOUBT THOSE SCHNAPPS BOTTLES IN THE WET BAR WILL BE REPORTED AT SCHOOL MY HUSBAND COMMENTED WRYLY AFTER OUR WORRIED LITTLE GIRL HAD GONE TO BED RECITING THE POISON CONTROL 1800 NUMBER PITY THE POOR CHILD WHOSE PARENTS SMOKE AS WELL AS DRINK A FEW WEEKS LATER OUR CHILD CAME HOME WITH A WORKSHEET THAT FINALLY SENT US BANGING ON SCHOOL DOORS TITLED CHASE YOUR MONSTERS IT PRESENTED A LIST OF SCARY THOUGHTS THAT HAD BEEN UNVEILED TO HER IN AN ANIMATED FILM AS THE MAJOR BUGABOOS OF SEVENYEAROLDS AMONG THESE GROWNUPS MUST BE FEARED YOUR HOMELIFE IS A WAR SOMEDAY YOU'LL USE DRUGS AND PEOPLE OF DIFFERENT COLORS SHOULD NOT WORK TOGETHER NOW THESE ARE TRULY UGLY SUGGESTIONS TO PUT INTO THE HEAD OF A CHILD BUT EVEN UGLIER WAS A FOLLOWUP ASSIGNMENT ON THE MONSTER THEME WHICH INSTRUCTED OUR DAUGHTER TO CLOSE HER EYES VISUALIZE A MONSTER PROBLEM OF HER OWN AND THEN WRITE ABOUT IT WHAT WE WONDERED COULD POSSIBLY BE BEHIND SUCH AN INVASIVE EXERCISE IN NEGATIVISM WHAT IS BEHIND IT WE SUSPECT AFTER HAVING LOOKED FURTHER INTO THE CURRICULUM IS THE DESIRE TO HARDEN CHILDREN THE BETTER TO WEAN THEM FROM THE POTENTIALLY INSIDIOUS INFLUENCE OF THEIR PARENTS INDEED IN THE WAR ON DRUGS LAUNCHED BY THE HERE'S LOOKING AT YOU 2000 CURRICULUM PARENTS NOT PUSHERS ARE THE ENEMY PARENT ARE PURPORTED TO TRANSMIT POSITIVE ATTITUDES TOWARD DRUG USE AND TO INVOLVE THEIR CHILDREN IN IT HOW ACCORDING TO THE TEACHER'S GUIDE WHEN THEY REQUEST CHILDREN TO BRING A BEER FROM THE REFRIGERATOR AND PARENTS ARE NOTED IN THE CURRICULUM TO HAVE MORE DESTRUCTIVE PROPENSITIES THAN SIMPLY ENCOURAGING CHEMICAL DEPENDENCY TEACHERS IN FACT ARE ASKED TO PAY CLOSE ATTENTION TO ANY SUSPECTED FAMILY MANAGEMENT PROBLEMS IN THEIR CLASSROOM THEY ARE COACHED IN THE WARNING SIGNS OF FAMILY CONFLICT AND THEY ARE PROMPTED TO REMIND THEIR PUPILS TO TALK TO A FRIEND OR A TEACHER IF THEY NEED HELP WITH A PROBLEM ONE EXERCISE IN THE SECONDGRADE LESSON PLAN FAIRLY EXTRACTS FAMILY CONFESSIONS IT INVITES CHILDREN TO SEND SECRET MESSAGES TO THEIR TEACHER ABOUT PROBLEMS AT HOME MY HUSBAND AND I HAVE REQUESTED THAT OUR CHILD BE EXEMPTED FROM THIS HEALTH PROGRAM THE HYGIENIC BENEFITS OF WHICH WE ARE CONVINCED ONLY A GOEBBELS COULD TRLY APPRECIATE THE SCHOOL AUTHORITIES HAVE POLITELY ACCEDED TO OUR WISHES OF COURSE WE WERE INFORMED THAT TAKING OUR LITTLE GIRL OUT OF THE PROGRAM MIGHT MAKE HER FEEL OSTRACIZED BUT THIS APPARENTLY HAS NOT HAPPENED I ASKED MY DAUGHTER ONLY LAST WEEK WHETHER SHE FEELS UNHAPPY ABOUT BEING SENT OUT OF THE ROOM DURING HEALTH LESSONS OH NO SHE ANSWERED EMPHATICALLY I GET TO GO TO THE LIBRARY MS MACK IS WRITING A BOOK ON THE CULTURAL ENVIRONMENT OF CHILDHOOD SEE RELATED LETTERS LETTERS TO THE EDITOR WE DON'T TURN KIDS AGAINST PARENTS WSJ JUNE 30 1993 9306170062 YY93 MM06 9306300057 930630 TECHNOLOGY BRIEF ELI LILLY & CO MARKETING RIGHTS COVERING CENTOCOR DRUG ARE GRANTED ELI LILLY & CO EXERCISED AN OPTION IT OBTAINED A YEAR AGO GRANTING MARKETING RIGHTS TO CENTOCOR INC'S CENTORX DRUG UNDER THE PACT LILLY GETS GLOBAL MARKETING AND DISTRIBUTION RIGHTS TO THE DRUG WHICH IS STILL IN DEVELOPMENT THE DRUG IS DESIGNED TO PREVENT BLOOD CLOTS IN PATIENTS WHO UNDERGO CORONARY ANGIOPLASTY LILLY WILL HELP PURSUE REGULATORY FILINGS AND ASSIST IN DEVELOPMENT A SPOKESMAN SAID THE INDIANAPOLIS COMPANY ISN'T SAYING WHETHER THAT INCLUDES ADDITIONAL RESEARCH FUNDING IT EXERCISED THE OPTION FOR FREE LILLY OBTAINED THE CENTORX OPTION AS PART OF AN ALLIANCE LAST JULY WITH THE MALVERNE PA BIOTECHNOLOGY CONCERN IT PAID 50 MILLION FOR A 5 CENTOCOR STAKE AND AGREED TO PAY ANOTHER 50 MILLION FOR RESEARCH IN CENTOCOR'S CENTOXIN DRUG THE FIRMS AGREED THAT LILLY COULD EXERCISE THE OPTION ON CENTORX FOR 25 MILLION AND IF CENTOXIN HADN'T RECEIVED APPROVAL BY 1994 THE OPTION COULD BE EXERCISED FOR FREE THE CENTOXIN PRODUCT RAN INTO DIFFICULTY DURING TRIALS HOWEVER AND THE LILLY SPOKESMAN SAID THE TWO COMPANIES HAVE AGREED THAT LILLY DOESN'T HAVE TO PAY THE 25 MILLION FOR THE CENTORX OPTION 9306300056 930630 JAPAN AIR ORDERS 7 BOEING 777S SEATTLE BOEING CO SAID IT RECEIVED AN ORDER FOR SEVEN 777S FROM JAPAN AIR SYSTEM CO VALUED AT ABOUT 820 MILLION BOEING SAID THE CARRIER HADN'T YET CHOSEN AN ENGINE FOR THE AIRCRAFT THE NEW BOEING 777 WIDEBODY TWINJET WILL HAVE ITS FIRST TEST FLIGHT IN JUNE 1994 AND THE FIRST DELIVERY FOR THIS ORDER IS SET FOR THE THIRD QUARTER OF 1996 THE COMPANY SAID BOEING HAS RECEIVED 130 ORDERS FOR 777S SO FAR 9306300055 930630 ABREAST OF THE MARKET INDUSTRIALS FELL 1135 TO 351885 AS POOR ECONOMIC DATA END RALLY BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FLURRY OF WEAK ECONOMIC DATA HELPED TO END A THREEDAY STOCK MARKET RALLY THAT HAD TAKEN ITS CUE FROM SHARPLY LOWER INTEREST RATES NEARLY EVERY SECTOR CAME UNDER PRESSURE AS A SERIES OF ECONOMIC REPORTS REIGNITED WORRIES THAT THE ECONOMY CONTINUES TO FALTER THE REPORTS SHOWED A DECREASE IN NEW HOME SALES LAST MONTH A DOWNTURN IN CONSUMER CONFIDENCE AND A DROP IN THE INDEX OF MAY'S LEADING ECONOMIC INDICATORS ECONOMISTS HAD EXPECTED HIGHER READINGS FOR ALL OF THE FIGURES THE DOW JONES INDUSTRIAL AVERAGE MANAGED TO MAKE A SLIGHT COMEBACK NEAR THE CLOSE WHICH TRADERS ATTRIBUTED TO ENDOFTHEQUARTER MARK UPS THE INDUSTRIALS FELL 1135 POINTS OR 032 TO 351885 AFTER SLIDING ABOUT 24 POINTS TO THEIR LOWEST LEVELS OF THE DAY IN LATE TRADING RETREATING BIG BOARD STOCKS EDGED OUT ADVANCERS 979 TO 970 ON HEFTY VOLUME OF 272987540 UP FROM THE 240434910 SHARES THAT CHANGED HANDS MONDAY THE ECONOMIC NUMBERS HAVE BEEN SHOWING SLUGGISH GROWTH AND THAT'S A CONCERN SAID DAVID BUTLER HEAD OF EQUITY TRADING AT KEMPER FINANCIAL SERVICES BUT LOWER INTEREST RATES ARE STILL A FACTOR WHICH BASICALLY MEANS THERE'S NO PLACE ELSE TO GO EXCEPT FOR EQUITIES MR BUTLER SAID BIG BOARD SHARES SHOULD FARE WELL FOR THE REST OF THE WEEK AS THE SESSIONS BEFORE THE INDEPENDENCE DAY HOLIDAY ARE TYPICALLY STRONG THE ONLY THING THAT COULD THROW A WRENCH IN THE PICTURE IS IF FRIDAY'S EMPLOYMENT DATA ARE POOR MR BUTLER SAID JUNE NONFARM PAYROLL FIGURES ARE DUE FOR RELEASE FRIDAY AND ANALYSTS ANTICIPATE THE NUMBER WILL JUMP FOR AN 11TH CONSECUTIVE MONTH PHILIP ROTH CHIEF TECHNICAL ANALYST AT DEAN WITTER REYNOLDS SAID YESTERDAY'S ACTION WAS THE CONSOLIDATION OF GAINS MADE MONDAY IN A STRONG MOVE OUT OF A BASE PATTERN HE ADDED THAT THERE WAS A LITTLE PROFITTAKING AND SOME CONFUSION BECAUSE PEOPLE AREN'T SURE WHETHER OR NOT THE ECONOMY'S STRONG BUT MR ROTH SAID THE DROPOFF WAS AN ABERRATION AND HE EXPECTS THE STOCK MARKET TO MAKE FURTHER GAINS IN A RALLY THAT WILL PEAK IN JULY OR AUGUST HE LOOKS FOR THE STANDARD & POOR'S 500STOCK INDEX TO HIT 460 AND THE INDUSTRIALS TO MOVE TO ABOUT 3600 BEFORE THE SUMMER IS OVER HE ADDED THAT CYCLICAL ISSUES COULD LEAD THE WAY IF ECONOMIC READINGS START TO SEND A LITTLE BETTER OF A MESSAGE YESTERDAY THE S&P 500 GAVE UP 116 POINTS OR 026 TO END AT 45069 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 046 POINT OR 018 TO 24906 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX ROSE 066 POINT OR 015 TO 43352 THERE WERE 283 DECLINING AMEX SHARES AND 267 GAINERS SOME CYCLICAL ISSUES OR THOSE THAT MOVE IN TANDEM WITH THE ECONOMIC TIDES WERE SHAKEN UP THE MOST BY THE NEGATIVE DATA ALLIEDSIGNAL SLIPPED 1 1/2 TO 67 5/8 GEORGIAPACIFIC LOST 1 1/8 TO 57 1/2 AND INTERNATIONAL PAPER DROPPED 1 TO 63 REYNOLDS METALS CLIMBED 1 3/4 TO 46 3/4 APPARENTLY PROMPTED BY ALUMINUM CO OF AMERICA'S ANNOUNCEMENT LATE MONDAY THAT IT PLANS TO CUT ONEQUARTER OF ITS US CAPACITY ALCOA WAS UP 3/4 TO 69 FEARS THAT A PRICE WAR MAY BE HEATING UP AGAIN IN JAPAN HURT SOME COMPUTER STOCKS COMPAQ COMPUTER TUMBLED 4 1/8 TO 49 3/4 ON HEAVY VOLUME AND INTERNATIONAL BUSINESS MACHINES SHED 1 TO 49 3/8 MONDAY DELL COMPUTER FELL IN OVERTHECOUNTER TRADING AFTER SAYING IT PLANS TO SLASH PRICES ON ITS MAIN LINE OF PERSONAL COMPUTERS 9 TO 23 IN JAPAN ADVANCED MICRO DEVICES FINISHED 1 7/8 HIGHER AT 24 ON HEAVIERTHANNORMAL VOLUME FIRST BOSTON UPGRADED THE COMPANY'S SHARES TO BUY FROM HOLD SAYING THE STOCK'S PRICE DECLINE RELATED TO THE OVERTURNING OF THE INTEL CORP 386MICROPROCESSOR ARBITRATION DECISION HAS BEEN FAIRLY DISCOUNTED IN THE NEW ISSUE ARENA EK CHOR CHINA MOTORCYCLE CLOSED AT 24 1/8 IN ACTIVE TRADING ABOVE ITS INITIAL OFFERING PRICE LATE MONDAY OF 21 A SHARE THE BERMUDABASED COMPANY OWNS INTERESTS IN AND ACTIVELY MANAGES FOUR SINOFOREIGN EQUITY JOINTVENTURE COMPANIES IN CHINA YPF TOPPED THE MOSTACTIVE LIST AND ENDED AT 21 7/8 ABOVE ITS 19ASHARE OFFERING PRICE MONDAY YPF ARGENTINA'S NATIONAL OIL COMPANY TRADED ON VOLUME OF ABOUT 34 MILLION SHARES AMONG RETAILERS SHOPKO STORES SANK 1 1/4 TO 11 7/8 FOLLOWING NEWS THAT IT POSTED OPERATING PROFIT OF 20 CENTS A SHARE IN THE 16 WEEKS ENDED JUNE 19 COMPARED WITH NET INCOME OF 34 CENTS A SHARE A YEAR EARLIER PIPER JAFFRAY LOWERED ITS RATING ON THE COMPANY'S SHARES TO REASONABLY PRICED FROM ACCUMULATE AS IT HAD PROJECTED SHOPKO WOULD REPORT OPERATING PROFIT OF 28 CENTS A SHARE BUT HILLENBRAND INDUSTRIES GOT A 2 3/4 POINT LIFT TO 42 1/2 AFTER REPORTING FISCAL SECONDQUARTER NET INCOME OF 52 CENTS A SHARE ABOVE THE 41 CENTS A SHARE EARNED A YEAR AGO ANALYSTS HAD LOOKED FOR THE COMPANY TO EARN 49 CENTS A SHARE A PAINEWEBBER DOWNGRADING TO NEUTRAL FROM ATTRACTIVE PUT PRESSURE ON ITT CORP PUSHING IT DOWN 2 TO 84 3/4 JACK MODZELEWSKI AN ANALYST AT THE BROKERAGE FIRM CITED THE STOCK'S RECENT PRICE GAINS THE COMPANY'S SHARE REPURCHASE PLANS AND ITT'S MOVE TOWARD BUYING GAMING PROPERTIES FOR THE DOWNGRADE 9306300054 930630 BUSINESS BRIEF NORTH AMERICAN BIOLOGICALS INC PROFIT INCREASE OF 50 TO 70 IS EXPECTED FOR 2ND QUARTER NORTH AMERICAN BIOLOGICALS INC MIAMI EXPECTS TO REPORT THAT SECONDQUARTER NET INCOME ROSE ABOUT 50 TO 70 AS THE COMPANY EXPANDS ITS PLASMACOLLECTION BUSINESS DAVID J GURY CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT SAID THE COMPANY WHICH COLLECTS AND DISTRIBUTES BLOOD PLASMA WILL POST NET OF ABOUT 600000 TO 700000 OR FIVE TO SIX CENTS A SHARE FOR THE QUARTER IN THE YEAREARLIER QUARTER NORTH AMERICAN BIOLOGICALS EARNED 408000 OR FOUR CENTS A SHARE SECONDQUARTER SALES SHOULD CLIMB BETWEEN 10 AND 12 TO ABOUT 22 MILLION COMPARED WITH 20 MILLION IN THE YEAREARLIER PERIOD MR GURY SAID IN AN INTERVIEW WE'RE GOING TO BE VERY CLOSE TO HAVING RECORD SALES AND EARNINGS HE SAID 9306300053 930630 INTERNATIONAL BRIEF KAWASAKI STEEL CORP JAPAN FIRM'S PRETAX PROFIT PLUNGED 70 FOR FISCAL YEAR KAWASAKI STEEL CORP SAID CONSOLIDATED PRETAX PROFIT FELL 70 FOR THE YEAR ENDED MARCH 31 WHILE IT POSTED A NET LOSS OF 3004 BILLION YEN 2829 MILLION THE JAPANESE STEEL CONCERN SAID PRETAX PROFIT FELL TO 1614 BILLION YEN FROM 5328 BILLION YEN A YEAR EARLIER THE NET LOSS CONTRASTS WITH NET INCOME OF 144 BILLION YEN A YEAR EARLIER THE NET LOSS WAS ATTRIBUTED MAINLY TO EXTRAORDINARY LOSSES ON A JOINT VENTURE IN THE US ARMCO STEEL CO WHICH IS OWNED BY KAWASAKI AND ARMCO INC A SPOKESMAN SAID THE US VENTURE HAD 460 MILLION IN LOSSES TIED TO RESTRUCTURING AND DISCONTINUATION OF CERTAIN PRODUCT LINES HALF OF WHICH WAS BORNE BY KAWASAKI STEEL THE SPOKESMAN SAID HE SAID HE DOESN'T EXPECT THOSE LOSSES TO BE REPEATED IN THE CURRENT YEAR BUT THE VENTURE STILL NEEDS TO RIDE A US ECONOMIC RECOVERY UPWARD DECLINES IN PARENT COMPANY RESULTS ALSO DRAGGED ON GROUP EARNINGS THE SPOKESMAN SAID 9306300052 930630 MARKETING BRIEF QVC NETWORK INC CONCERN PLANS TO LAUNCH EXPANDED FASHION CHANNEL QVC NETWORK INC WILL UNVEIL PLANS FOR EXPANDING THE FASHION CHANNEL BY AUG 1 AND PLANS TO LAUNCH THE REVISED SERVICE BY THE SECOND QUARTER OF NEXT YEAR QVC CHAIRMAN BARRY DILLER TOLD SHAREHOLDERS MR DILLER ALSO TOLD SHAREHOLDERS AT QVC'S ANNUAL MEETING IN SAN ANTONIO ON MONDAY THAT THE COMPANY'S MAIN SHOPPING NETWORK WILL GET A BOOST OF PROMOTION AND MARKETING IN THE FALL WITH ADS PROMOTING SPECIFIC SHOWS ON THE CHANNEL THE COMPANY IS ALSO DEVELOPING AN ONLINE COMPUTER SERVICE FOR ITS PROGRAMMING ON THE INTERNATIONAL SIDE QVC IS IN TALKS TO EXPAND TO JAPAN AND CANADA BRITISH AND MEXICAN PROGRAMMING WILL LAUNCH BY THE END OF THE YEAR SEPARATELY HOME SHOPPING NETWORK INC WHICH IS CONTROLLED BY A MAJOR OWNER OF QVC LIBERTY MEDIA CORP SAW ITS COMMON SHARES RISE 1825 TO 12125 YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING WALL STREET ANALYSTS REACTED POSITIVELY TO THEIR FIRST MEETING WITH HOME SHOPPING PRESIDENT AND CHIEF EXECUTIVE GERRY HOGAN SPONSORED BY UBS SECURITIES IN BOSTON AND NEW YORK MR HOGAN STRESSED THAT THE MANAGEMENT OF THE COMPANY HAS CHANGED AND TALKED ABOUT PLANS FOR POSSIBLE PRIVATE LABEL HOME SHOPPING DEALS ON OTHER CABLE CHANNELS AND PAYPERVIEW PILOTS THAT HOME SHOPPING IS DOING WITH SEVERAL CABLE SYSTEMS 9306300051 930630 WHO'S NEWS LAWYER REED HUNDT PICKED BY CLINTON FOR FCC CHIEF WASHINGTON PRESIDENT CLINTON PICKED WASHINGTON LAWYER REED HUNDT A FRIEND OF VICE PRESIDENT AL GORE TO BE CHAIRMAN OF THE FEDERAL COMMUNICATIONS COMMISSION MR HUNDT 45 YEARS OLD IS A PARTNER IN THE WASHINGTON OFFICE OF LATHAM & WATKINS WHERE HE HAS SPECIALIZED IN ANTITRUST MATTERS AND UNTIL 1988 HEADED THE LITIGATION DEPARTMENT MR HUNDT WAS A CLASSMATE OF MR GORE'S AT ST ALBANS A PRIVATE BOYS SCHOOL AND A CLASSMATE OF MR AND MRS CLINTON AT YALE LAW SCHOOL HE HAS BEEN AN ADVISER TO MR GORE AND WAS A MEMBER OF THE ECONOMIC TRANSITION TEAM FOR PRESIDENT CLINTON MR HUNDT WHO IS EXPECTED TO WIN SENATE CONFIRMATION EASILY WILL SUCCEED ACTING CHAIRMAN JAMES QUELLO AT A TIME WHEN THE AGENCY IS SWAMPED WITH THE WORK OF DRAFTING AND ENFORCING RULES STEMMING FROM THE 1992 CABLE REREGULATION LAW REGINA KEENEY REPUBLICAN COUNSEL TO THE SENATE COMMERCE COMMITTEE'S COMMUNICATIONS PANEL IS SAID TO BE THE FRONTRUNNER FOR THE REMAINING VACANCY ON THE FIVEMEMBER COMMISSION 9306300050 930630 INTERNATIONAL BRIEF DAIMLERBENZ AG COMPANY EXPECTS PROFIT OF 5888 MILLION FOR 1993 DAIMLERBENZ AG CHIEF FINANCIAL OFFICER GERHARD LIENER REITERATED EARLIER PREDICTIONS THAT THE COMPANY WILL REPORT A PROFIT OF ABOUT ONE BILLION MARKS 5888 MILLION FOR 1993 BUT WILL INCREASE THAT TO ABOUT TWO BILLION MARKS IN 1994 IN AN INTERVIEW DR LIENER SAID DAIMLERBENZ IN GERMANY EXPECTS TO INCREASE SALES IN THE SECOND HALF OF 1993 BY 20 FROM THE YEAR EARLIER HE SAID FIRSTHALF SALES FELL BETWEEN 20 AND 25 FROM THE YEAREARLIER PERIOD DAIMLERBENZ POSTED A 145 BILLION MARK PROFIT IN 1992 AND A RECORD 194 BILLION MARK PROFIT IN 1991 MR LIENER SAID THERE ARE TWO REASONS WHY THE COMPANY IS REASONABLY OPTIMISTIC HE SAID DAIMLER'S MERCEDES AG SUBSIDIARY'S NEW MODEL CCLASS COMPACT SERIES OF CARS HAS HAD A FANTASTIC RECEPTION WHICH IS ALSO INFLUENCING SALES OF OTHER MODELS WE ARE CONFIDENT THAT IN THE SECOND HALF OF 1993 AGAINST THE TREND OF THE MARKET WE WILL HAVE AN INCREASE IN OUR SALES DR LIENER SAID ALSO DAIMLERBENZ HAS REDUCED ITS WORK FORCE BY 40000 JOBS OR 10 THAT WILL INCREASE THE COMPANY'S COSTS IN 1993 BUT SAVINGS WILL FLOW THROUGH IN 1994 HE SAID I THINK THAT WE HAVE A GOOD CHANCE THAT YEAR 1994 TO GET BACK TO THE LEVEL WE HAD IN 1991 THAT WAS JUST SHORT OF TWO BILLION MARKS PROFIT HE SAID ASKED ABOUT THE RISE IN THE COMPANY'S SHARE PRICE IN RECENT WEEKS DR LIENER SAID I THINK IT'S A LOGICAL CONSEQUENCE OF MESSAGES WE GAVE TO THE MARKET THAT THE COMPANY IS TURNING AROUND 9306300049 930630 NAFTA'S CRITICS ARE BACKED ON LOSS OF JOBS TO MEXICO WASHINGTON A STUDY SPONSORED BY THE DEMOCRATIC STUDY GROUP CONCLUDES THAT WAGES IN MEXICO HAVEN'T KEPT UP WITH INCREASED PRODUCTIVITY IN HIGHTECHNOLOGY INDUSTRIES THE REPORT'S FINDINGS AMOUNT TO LEVERAGE FOR CRITICS WHO ARGUE THAT US COMPANIES WILL EXPORT JOBS TO MEXICO IF THE NORTH AMERICAN FREE TRADE AGREEMENT IS PASSED WITHOUT SIDE AGREEMENTS THAT ENFORCE LABOR STANDARDS INCLUDING WAGE LEVELS THE PACT SCHEDULED TO TAKE EFFECT JAN 1 1994 WOULD KNOCK DOWN TARIFF BARRIERS BETWEEN THE US CANADA AND MEXICO OVER THE NEXT 15 YEARS HARLEY SHAIKEN A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA SAN DIEGO CONCLUDED IN THE STUDY THAT MEXICO ISN'T AN INDUSTRIAL BACKWATER BUT RATHER THAT A NUMBER OF PLANTS IN MEXICO HAVE SHOWN A STRONG HIGHTECH CAPABILITY THE DEMOCRATIC STUDY GROUP IS A PRIVATE RESEARCH FOUNDATION AFFILIATED WITH THE DEMOCRATIC PARTY IN A BRIEFING TO RELEASE THE REPORT HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO REITERATED HIS CALL FOR THE NORTH AMERICAN TRADE PACT TO HAVE PROVISIONS TO CHECK WHETHER MEXICAN WAGES ARE KEEPING PACE WITH PRODUCTIVITY HE MENTIONED SUCH CONDITIONS IN SPEECHES EARLIER THIS YEAR US NEGOTIATORS HAVE BEEN DISCUSSING LABOR AND ENVIRONMENT SIDE AGREEMENTS AS PART OF THEIR TRADE ACCORD TALKS BUT MEXICO AND CANADA HAVE REBUFFED MANY US DEMANDS SAYING THE TERMS WOULD VIOLATE THEIR NATIONAL SOVEREIGNTIES 9306300048 930630 TECHNOLOGY BRIEF DATA GENERAL CORP CONCERN UNVEILS COMPUTERS THAT USE STANDARD SOFTWARE DATA GENERAL CORP EXPANDED THE REACH OF ITS PRODUCT LINE WITH A NEW FAMILY OF COMPUTERS THAT RUN ON STANDARD SOFTWARE THIS WILL OPEN NEW MARKETS FOR US SAID RONALD SKATES CHIEF EXECUTIVE OFFICER HE SAID THAT THE NEW LINE COULD BE ESPECIALLY ATTRACTIVE TO COMPANIES MOVING AWAY FROM TRADITIONAL MAINFRAME COMPUTERS TOWARD OPEN SYSTEMS THAT USE STANDARD SOFTWARE DATA GENERAL OF WESTBOROUGH MASS SAID THE NEW AVIION FAMILY RANGES FROM A 16PROCESSOR SERVER PROCESSING UP TO 1600 MILLION INSTRUCTIONS A SECOND AND 1000 TRANSACTIONS A SECOND TO TWO FOUR SIX AND 12PROCESSOR VERSIONS THE TWO AND FOURPROCESSOR VERSIONS OF THE LINE WILL BE AVAILABLE IMMEDIATELY WHILE THE SIX AND EIGHTPROCESSOR MODELS WILL BE READY IN LATE FALL THE COMPANY SAID THE 12 AND 16PROCESSOR SYSTEMS WILL GO ON SALE NEXT SPRING DATA GENERAL SAID PRICING FOR BASE SYSTEMS WILL BEGIN AT ABOUT 84000 FOR THE TWOPROCESSOR VERSIONS AND WILL GO UP TO 280000 FOR THE 16PROCESSOR VERSIONS 9306300047 930618 CLINTON'S BUMPY START SLOWS BUSINESS A WALL STREET JOURNAL NEWS ROUNDUP MANY LEADERS OF US COMPANIES LARGE AND SMALL ARE INCREASINGLY DISILLUSIONED WITH THE CLINTON ADMINISTRATION SAYING UNCERTAINTIES ABOUT GOVERNMENT POLICIES ARE HINDERING BUSINESS DECISIONS SOME TOP EXECUTIVES WHO DIDN'T LIKE BILL CLINTON IN THE FIRST PLACE NOW VIEW HIM AS MORE INDECISIVE THAN EVER AND EVEN FORMER SUPPORTERS ARE EXPRESSING FRUSTRATION ONE COMPLAINT IT'S POLITICS AS USUAL NOT BUSINESS AS USUAL DESPITE ALL THE CRITICISM THE PRESIDENT HAS CHALKED UP SOME VICTORIES LEADING SOME TO HOPE THAT HE IS ON THE VERGE OF TURNING THINGS AROUND IN CONGRESS FOR INSTANCE MR CLINTON'S DEFICITREDUCTION TAX PLAN WHILE FULL OF COMPROMISES AND SCALINGS BACK AND HIS LEGISLATION TO REFORM CAMPAIGN FINANCE ALSO WATERED DOWN ARE MOVING TOWARD PASSAGE AND OF COURSE SOME CAPTAINS OF INDUSTRY WHO BACKED HIM IN THE CAMPAIGN ARE EITHER STILL POSITIVE OR AT LEAST HOPEFUL BUT MOST EXECUTIVES INTERVIEWED BY WALL STREET JOURNAL REPORTERS FOR THIS ARTICLE GIVE THE PRESIDENT THUMBS DOWN FOR HIS PERFORMANCE SO FAR THEY SAY HIS SEEMING UNWILLINGNESS OR INABILITY TO ACT ON MAJOR ISSUES AFFECTING THE ECONOMY HAS HAMPERED BUSINESS PLANNING A PARTICULAR PROBLEM CITED BY MANY EXECUTIVES IS THE PRESIDENT'S FAILURE TO MAKE SOME KEY APPOINTMENTS LEAVING COMPANIES UNABLE TO GET RESPONSES TO THEIR QUESTIONS OR UNSURE OF THE DIRECTION REGULATORY POLICY WILL TAKE I THINK EVERYONE IS DISCOURAGED WITH WHAT IS GOING ON IN WASHINGTON SAYS KENNETH MURPHY CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FIRST ABILENE BANKSHARES INC A SMALL WEST TEXAS BANKHOLDING COMPANY HE ADDS IT'S POLITICS AS USUAL WHILE UNCERTAINTY OVER WHITE HOUSE LEADERSHIP AND ITS IMPACT ON THE ECONOMY HASN'T YET TRIGGERED ANY HARD DECISIONS AT HAUSER CHEMICAL RESEARCH INC THE SMALL BOULDER COLO COMPANY IS KEEPING A CLOSE EYE ON A 7 MILLION TO 10 MILLION MANUFACTURINGPLANT EXPANSION ALTHOUGH CURRENT PLANS ARE TO COMPLETE THE PROJECT I'D SAY WE ARE LOOKING AT IT VERY CLOSELY SAYS CEO DEAN P STULL WE'RE PROBABLY A LITTLE MORE CAUTIOUS ABOUT THOSE DECISIONS THAN WE WOULD HAVE BEEN AT THE BEGINNING OF THE PRESIDENCY CRAIG R BENSON CHAIRMAN OF CABLETRON SYSTEMS INC SAYS HE IS A REPUBLICAN WHO DIDN'T VOTE FOR MR CLINTON AND NOW VIEWS HIM AS MORE INDECISIVE THAN BEFORE THE ELECTION THERE'S BEEN AN AWFUL LOT OF JOCKEYING BACK AND FORTH ON ISSUES HE SAYS AND THAT CAUSES A LOT OF WASTED ENERGY ON OUR PART FOR EXAMPLE SAYS MR BENSON THE ROCHESTER NH MAKER OF COMPUTERNETWORKING PRODUCTS IS TRYING TO DECIDE ABOUT EXPANDING OR CONTRACTING ITS FOREIGN FACTORIES BASED PARTLY ON US TAX POLICY BUT NOW THE ADMINISTRATION IS CONSIDERING THREE DIFFERENT VERSIONS OF NEW TAX RULES ON THE PROFITS OF SUCH FACILITIES MR BENSON SAYS IT'S DRIVING ME NUTS TRYING TO MAKE A DECISION WHILE THE ADMINISTRATION MULLS THE VARIATIONS THE CLINTON ADMINISTRATION HAS SHOWN FRIGHTENING INDECISIVENESS SAYS MORTON E DAVID CHAIRMAN AND CEO OF FRANKLIN ELECTRONIC PUBLISHERS INC WHICH MAKES HANDHELD ELECTRONIC BOOKS THE EXECUTIVE THOUGHT MR CLINTON HAD A MASTERY OF POLITICS WHEN HE WAS ELECTED BUT NOW I'M NOT SURE OF THE PRESIDENT'S ABILITY AS A POLITICIAN MR DAVID EXPECTS THE UNCERTAINTY CREATED BY THE ADMINISTRATION TO HURT RETAIL PERFORMANCE OVERALL EVEN THROUGH THE FALL FRANKLIN'S BIGGEST SEASON WE'VE BEEN REDUCING OUR PLANS FOR THE NUMBER OF PRODUCTS TO BUILD FOR SALE IN THE CHRISTMAS SEASON PRESIDENTIAL PRIORITIES CONCERN SOME BUSINESS LEADERS MITCHELL E KERTZMAN CEO OF POWERSOFT CORP A BURLINGTON MASS SOFTWARE MAKER AND FORMER PRESIDENT OF THE AMERICAN ELECTRONICS ASSOCIATION SAYS I'M STILL A SUPPORTER BUT I WOULD SAY I'M A FRUSTRATED SUPPORTER OF THE PRESIDENT MR KERTZMAN SAYS MR CLINTON EXPENDED TOO MUCH POLITICAL CAPITAL IN THE FIRST WEEKS OF HIS PRESIDENCY BY FOCUSING TOO MUCH ON SOCIAL ISSUES ON WHICH MR KERTZMAN GENERALLY SUPPORTS THE CLINTON POLICIES AND NOT ENOUGH ON PUSHING HIS ECONOMIC PLAN THROUGH CONGRESS NOW IT'S GOING TO BE VERY HARD TO GET ANYTHING DONE HE SAYS ALSO CONCERNED ABOUT PRIORITIES IS CHARLES LAMANTIA PRESIDENT AND CHIEF EXECUTIVE OF ARTHUR D LITTLE INC A CLOSELY HELD MANAGEMENTCONSULTING COMPANY IN CAMBRIDGE MASS HE IS REALLY QUITE CONCERNED THAT THE CLINTON ADMINISTRATION WON'T BE ABLE TO ACCOMPLISH ANY OF ITS GOALS THE PRESIDENT'S MAIN PROBLEM MR LAMANTIA ADDS IS THAT HE LET PERIPHERAL ISSUES OR ONES OF LITTLE IMPORTANCE DEFINE HIM AND WEAKEN HIS LEADERSHIP POSITION GAYS IN THE MILITARY FOR EXAMPLE AND THE HAIRCUT INCIDENT WAS A LEADERSHIP CATASTROPHE HEALTHCARE REFORM IS AMONG THE MAJOR CONCERNS IN MAYWOOD NJ JUDITH FITZPATRICKDAVIS PRESIDENT OF SEREX INC A SMALL MAKER OF MEDICALTEST KITS SAYS SHE REGRETS VOTING FOR MR CLINTON IN AGONY I VOTED FOR HIM AT THE LAST MOMENT IN THE HOPE THAT HE WOULD BRING CREATIVE SOLUTIONS TO THE HEALTHCARE CRISIS AND OTHER PROBLEMS SHE ADDS THAT MR CLINTON NOW APPEARS INCAPABLE OF MAKING THE HARD CHOICES NECESSARY WILLIAM W GEORGE PRESIDENT AND CEO OF MEDTRONIC INC A MINNEAPOLIS MEDICALDEVICE COMPANY SAYS OF MR CLINTON I VOTED FOR HIM AND I DID IT ON THE THOUGHT THAT WE NEEDED A CHANGE BUT I DON'T THINK I COULD VOTE FOR HIM NOW MR GEORGE SAYS HE IS NO LONGER SURE WHERE THE PRESIDENT STANDS ON SEVERAL ISSUES AND HE HAS BEEN DISAPPOINTED BY THE SECRETIVE NATURE OF THE HILLARY RODHAM CLINTON HEALTHCARE PANEL'S DELIBERATIONS HE ALSO DECRIES THE ADMINISTRATION'S TOUGH REMARKS ABOUT MEDICAL COMPANIES SAYING THE STOCK PRICE OF EVERYTHING IN MEDICINE HAS BEEN HIT BECAUSE OF THE FRONTAL ASSAULT THE TRAVEL AND TOURISM INDUSTRY ALSO HAS BEEN HURT BADLY BY THE CLINTON ADMINISTRATION ASSERTS ROBERT C HAZARD JR CHAIRMAN AND CHIEF EXECUTIVE OF THE CHOICE HOTELS INTERNATIONAL UNIT OF MANOR CARE INC SILVER SPRING MD MR HAZARD SAYS PROPOSED TAXES AND REGULATIONS THREATEN TO STRANGLE THE INDUSTRY KEY POSTS SEVERAL EXECUTIVES CITED THE PRESIDENT'S FAILURE TO MAKE IMPORTANT APPOINTMENTS THE FACT THAT SO MANY KEY JOBS REMAIN VACANT IS A PROBLEM SAYS HAROLD RED POLING CHAIRMAN AND CEO OF FORD MOTOR CO FOR EXAMPLE THE TWO KEY SUBCABINET POSTS RELATING TO OUR INDUSTRY NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION ADMINISTRATOR AND ENVIRONMENTAL PROTECTION AGENCY ASSISTANT ADMINISTRATOR FOR AIR AND RADIATION REMAIN UNFILLED AT A TIME WHEN MAJOR POLICIES ARE UNDER DISCUSSION MCI'S MR ROBERTS SAYS WE'RE SITTING HERE IN MIDJUNE AND THE PRESIDENT HAS NOT YET SELECTED A HEAD OF THE FEDERAL COMMUNICATIONS COMMISSION WHEN AGENCIES AREN'T SUPERVISED HE SAYS GOVERNMENT STOPS TO BE SURE THE PRESIDENT HAS HIS SUPPORTERS AMONG THEM IS MARC NATHANSON CHAIRMAN AND CEO OF FALCON CABLE SYSTEMS CO A LOS ANGELESBASED CABLETELEVISION COMPANY THE ADMINISTRATION'S START HAS BEEN BUMPY HE CONCEDES BUT WE NEED TO GIVE CLINTON A BREAK AND I BELIEVE HE WILL BE RESILIENT HE AND HIS STAFF NEED TO ADJUST TO THE INSIDER'S GAMES AND THE SPECIALINTEREST GROUPS IN WASHINGTON AS WELL AS A VERY CYNICAL PRESS CORPS I BELIEVE HE WILL DO IT AND WILL GO DOWN IN HISTORY AS A GREAT PRESIDENT IN ANY CASE THE CLOUDS OF CRITICISM HAVE A FEW SILVER LININGS THAT'S ALMOST LITERALLY TRUE FOR G MICHAEL BOSWELL CHAIRMAN AND CEO OF SUNSHINE MINING CO A DALLASBASED INTEGRATED PRECIOUSMETALS COMPANY WHILE HE TALKS OF A CLINTON DEBACLE HE ADDS HIS ACTIONS HAVE ACTUALLY HELPED OUR INDUSTRY THOUGH I DON'T THINK THAT WAS THE ADMINISTRATION'S INTENTIONS PRECIOUSMETAL PRICES HAVE STRENGTHENED IN RECENT MONTHS AND IF THAT CONTINUES THEN WE WOULD ANTICIPATE SOME HIRING AND MR LAMANTIA SAYS ARTHUR D LITTLE THRIVES ON ISSUES AND PROBLEMS SO WE'RE DOING QUITE WELL G MICHAEL BOSWELL IS THE FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SUNSHINE MINING CO HE WAS INCORRECTLY IDENTIFIED AS THE CURRENT HOLDER OF THOSE POSTS IN A JUNE 18 ARTICLE SURVEYING BUSINESS EXECUTIVES ABOUT PRESIDENT CLINTON'S PERFORMANCE JOHN S SIMKO THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE SAID THAT MR BOSWELL'S VIEWS DON'T REFLECT THE VIEWS OF PRESENT MANAGEMENT 9306300046 930630 WHAT'S NEWS BUSINESS AND FINANCE AMERICAN EXPRESS NAMED ITS CEO HARVEY GOLUB TO THE ADDITIONAL POST OF CHAIRMAN AND ALLOWED HIM TO PICK A PRESIDENT THE DECISION SIGNALS THE BOARD HAS SHED ITS INITIAL RESERVATIONS ABOUT GOLUB AND IS NOW GIVING HIM ITS FULL BACKING JEFFREY STIEFLER OF THE IDS FINANCIAL SERVICES UNIT WAS NAMED PRESIDENT DUPONT OFFICIALS KNEW FOR AT LEAST A DECADE THAT THEIR BENLATE FUNGICIDE CAN KILL OR DAMAGE PLANTS COMPANY MEMOS AND COURT RECORDS INDICATE THE DOCUMENTS SURFACED DAYS BEFORE THE FIRST OF HUNDREDS OF DAMAGE SUITS GOES TO TRIAL AGAINST DUPONT WHICH DENIES THAT BENLATE HARMS PLANTS CONSUMER CONFIDENCE DROPPED IN JUNE TO THE LOWEST LEVEL IN EIGHT MONTHS RAISING CONCERN ABOUT HOW MUCH AMERICANS' SPENDING WILL RISE SEPARATELY THE INDEX OF LEADING INDICATORS FELL 03 IN MAY FOLLOWING APRIL'S 02 RISE AND MARCH'S 1 FALL NORTHWEST AIR GOT APPROVAL FROM A BANK GROUP TO DEFER TO 1997 MUCH OF THE AMOUNT DUE ON A 129 BILLION LOAN BUT SUPPLIERS HAVE YET TO AGREE TO THEIR PART OF THE RESTRUCTURING PLAN MEANWHILE NORTHWEST HAS 250 MILLION TO 270 MILLION IN CASH ON HAND PROBABLY ENOUGH TO LAST THROUGH THIS YEAR STOCK MUTUAL FUNDS TOOK IN 91 BILLION IN MAY DOWN FROM A RECORD 116 BILLION IN APRIL SOME MUTUAL FUND COMPANIES SAY THEY ARE SEEING STRONG BUT LOWER INFLOWS IN JUNE VS MAY THE FOUR MAJOR NETWORKS ARE EXPECTED TO ANNOUNCE A PACT TODAY FOR ISSUING VIOLENCE ADVISORIES PRECEDING PROGRAMS AMID PRESSURE BY WASHINGTON TO CURB VIOLENT PROGRAMMING BUSINESSES ARE CONTINUING TO SCALE BACK CAPITALSPENDING PLANS AMID UNCERTAINTY AND DISAPPOINTMENT OVER CLINTON'S ECONOMIC PLAN TWO SEPARATE SURVEYS TAKEN RECENTLY SHOW PRUDENTIAL INSURANCE ISSUED 300 MILLION IN A NEW FORM OF NOTES A MOVE THAT OTHER POLICYHOLDEROWNED INSURANCE FIRMS MAY FOLLOW TO RAISE CAPITAL FROM INSTITUTIONAL INVESTORS BANKS HAVE SUFFERED A HUGE OUTFLOW OF CONSUMER DEPOSITS IN THE PAST TWO YEARS WHICH COULD HURT THEIR ABILITY TO MEET A PICKUP IN LOAN DEMAND STILL SOME ANALYSTS EXPECT STRONG BANK EARNINGS FOR THE NEAR TERM JWP SAID ITS CHAIRMAN RESIGNED AND THE TECHNICAL SERVICES COMPANY GAVE ITS RECENTLY HIRED PRESIDENT THE RESPONSIBILITY OF RESTRUCTURING THE COMPANY'S 485 MILLION OF DEBT TOKYO STOCKS FELL SHARPLY TUESDAY AS FRAGILE MARKET SENTIMENT WAS SHAKEN BY A BRIBERY SCANDAL IN THE CONSTRUCTION INDUSTRY AND VOLUME HIT ITS LOWEST LEVEL IN FOUR MONTHS THE NIKKEI SLUMPED 34334 TO 1954342 PRICES EDGED UP WEDNESDAY MORNING BONDS LEHMAN BROTHERS TREASURY INDEX 528026 OFF 013 COMMODITIES OIL 1901 A BARREL UP 11 CENTS DOW JONES FUTURES INDEX 11986 OFF 038 SPOT INDEX 12013 OFF 040 DOLLAR 10650 YEN UP 025 16885 MARKS OFF 00075 9306300045 930630 NEW WORLD ROLE CLINTON IS FACING TASK OF GETTING US ALLIES TO FOLLOW HIS LEAD HIS FOREIGNPOLICY STRUGGLES ON BOSNIA RUSSIAN AID ARE MAKING JOB TOUGH TOKYO SUMMIT WILL BE A TEST BY DAVID WESSEL AND ROBERT S GREENBERGER STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON CAN BILL CLINTON LEAD THE WORLD IN HIS FIRST FIVE MONTHS THE PRESIDENT HAS SHOWN THAT HE IS WILLING TO SAY WHERE HE IS GOING BUT HASN'T YET FIGURED OUT HOW TO GET OTHERS TO FOLLOW THE TWO INTERNATIONAL ISSUES IN WHICH MR CLINTON HAS BEEN MOST PERSONALLY IMMERSED THE ATTEMPTS TO STOP THE KILLING IN BOSNIA AND TO HELP FINANCE RUSSIA'S ECONOMIC REFORMS SHOW A TENDENCY TO PROMISE MORE THAN HE CAN PERSUADE THE REST OF THE WORLD TO DELIVER THE WEEKEND BOMBING OF IRAQ MAKES MR CLINTON LOOK DECISIVE AS HE PREPARES FOR HIS FIRST SUMMIT WITH THE OTHER LEADERS OF THE GROUP OF SEVEN INDUSTRIALIZED COUNTRIES IN TOKYO NEXT WEEK BUT THE BAGHDAD RAID WAS A UNILATERAL ACTION IN WHICH MR CLINTON DIDN'T SEEK OTHERS' PARTICIPATION THE PAINSTAKING JOB OF BUILDING A CONSENSUS IN THE FRACTURED POSTCOLD WAR WORLD IS HARDER THAN ACTING ALONE AND MR CLINTON HAS YET TO PROVE THAT IT IS HIS FORTE EVEN MAJOR DECISIONS ARE OFTEN MADE AT THE LAST MINUTE BACK IN APRIL SECRETARY OF STATE WARREN CHRISTOPHER DIDN'T GET THE FINAL OK TO OFFER A CRUCIAL ELEMENT OF A PROPOSED RUSSIAN AID PACKAGE TO OTHER FOREIGN MINISTERS AT A MEETING IN TOKYO UNTIL AFTER HIS PLANE LEFT WASHINGTON THE NEW CLINTON TEAM AS IT HAS LEARNED THE ROPES HAS HAD OCCASIONAL DIFFICULTIES WITH EVEN SUCH SIMPLE TASKS AS GETTING A MESSAGE FROM THE PRESIDENT SENT TO MOSCOW FOR TREASURY SECRETARY LLOYD BENTSEN TO DELIVER TO RUSSIAN PRESIDENT BORIS YELTSIN CONSULTATIONS WITH ALLIES ARE OFTEN CLUMSY MR CLINTON WHO WRITES MORE AND TELEPHONES LESS THAN GEORGE BUSH DID HAS SENT SO MANY URGENT MISSIVES TO WORLD LEADERS THAT US OFFICIALS CONFIDE SOME ALLIES COMPLAIN THEY CAN'T DETERMINE THE PRESIDENT'S PRIORITIES A 2 1/2PAGE LETTER SENT THIS MONTH TO OTHER LEADERS OF THE MAJOR INDUSTRIALIZED NATIONS ASKING THEM TO ANTE UP 15 BILLION FOR AN INTERNATIONAL FUND TO HELP RUSSIA PRIVATIZE STATE ENTERPRISES MR CLINTON'S SECOND LETTER ON THE SUBJECT IN AS MANY MONTHS PROVOKED A SURPRISINGLY NEGATIVE REPLY FROM FRENCH PRESIDENT FRANCOIS MITTERRAND AFTER MOVING DECISIVELY EARLY IN HIS PRESIDENCY TO RALLY WORLD LEADERS BEHIND MR YELTSIN MR CLINTON WILL HAVE TO STRUGGLE NEXT WEEK TO WIN A FRACTION OF THAT CONTRIBUTION OF COURSE UNITING ALLIES MAY BE THE MOST DIFFICULT CHORE ANY PRESIDENT FACES IN THE 1990S FOR NEARLY A HALF CENTURY THE MAN IN THE WHITE HOUSE AUTOMATICALLY WAS CONSIDERED LEADER OF THE FREE WORLD WHILE THE SOVIET MENACE UNITED AMERICA'S ALLIES IN EUROPE AND ASIA BEHIND HIM IT'S HARDER NOW BECAUSE YOU REALLY HAVE TO LEAD YOU CAN'T JUST COMMAND SAYS BRENT SCOWCROFT WHO WAS PRESIDENT BUSH'S NATIONAL SECURITY ADVISER LEADERSHIP MEANS PERSUADING PEOPLE IT'S IN THEIR INTEREST TO DO THINGS RATHER THAN BEING ABLE TO JUST COMMAND THEM BY THE WEIGHT OF OUR ECONOMIC STRENGTH MR CLINTON'S TASK IS MADE EVEN MORE DIFFICULT BECAUSE THE OTHER G7 LEADERS ARE PREOCCUPIED WITH DOMESTIC POLITICAL TROUBLES AND WILL HAVE A HARD TIME COMMITTING TO UNDERTAKINGS THAT MIGHT BE UNPOPULAR AT HOME JAPAN'S PRIME MINISTER IS A LAME DUCK CANADA'S ASSUMED OFFICE ONLY LAST FRIDAY AND THE EUROPEANS ARE FACING RESTIVE ELECTORATES SO FROM FINANCING RUSSIA'S TRANSFORMATION TO CAPITALISM TO BREAKING THE GRIDLOCK IN THE WORLDTRADE TALKS MR CLINTON NEEDS TO DEMONSTRATE NEXT WEEK THAT HE NOT ONLY HAS SOME ANSWERS WHICH TO HIS CREDIT HE DOES BUT THAT THEY ARE THE RIGHT ONES SO FAR HIS RECORD ISN'T PROMISING IN MAY AS THE HOUSE WAYS AND MEANS COMMITTEE BEGAN DISSECTING HIS TAX PROPOSALS MR CLINTON WAS DECLARING THAT THE TIME HAD COME FOR THE WORLD TO STOP SERBIAN EFFORTS TO DRIVE MUSLIMS OUT OF BOSNIA MR CLINTON'S PREFERRED OPTION WAS TO LIFT AN ARMS EMBARGO ON BOSNIA'S MUSLIMS AND LAUNCH AIRSTRIKES AGAINST SERB POSITIONS MR CLINTON DISPATCHED MR CHRISTOPHER TO EUROPE TO CONSULT WITH US ALLIES A DECISON HE MADE AT THE LAST MINUTE CALLING OTHER WORLD LEADERS JUST HOURS BEFORE THE SECRETARY OF STATE DEPARTED WHEN MR CHRISTOPHER ARRIVED HE FOUND WIDESPREAD DOUBTS ABOUT MR CLINTON'S DECISION THE DAY AFTER HE GOT BACK TO WASHINGTON HE TOLD THE PRESIDENT THAT THE ALLIES WOULD ONLY GO ALONG IF AN ENORMOUS AMOUNT OF PRESSURE WAS EXERTED THE PRESIDENT ASKED MR CHRISTOPHER FOR HIS RECOMMENDATION STAY THE COURSE THE SECRETARY OF STATE SAID ACCORDING TO ONE OFFICIAL IN OTHER WORDS PUSH THE ALLIES INSTEAD MR CLINTON BACKED AWAY FROM HIS OWN PLAN THE RESULT WAS A COMPROMISE CALLING FOR SAFE HAVENS A CONCEPT THAT THE PRESIDENT HIMSELF HAD DESCRIBED AS A SHOOTING GALLERY THERE WAS A MOMENT THERE WHEN WE ON THIS SIDE OF THE POND WERE GEARING UP TO KNUCKLE UNDER SAYS WINSTON CHURCHILL A MEMBER OF BRITAIN'S PARLIAMENT AND GRANDSON OF THE GREAT POLITICAL LEADER THEN THERE DIDN'T SEEM TO BE THE FOLLOW THROUGH THERE WAS A CERTAIN HESITANCY AND THE MOMENT PASSED MR CLINTON WILL HAVE AN EASIER TIME MAKING THE OUTCOME OF HIS PLAN TO AID RUSSIA LOOK LIKE A VICTORY EVEN THOUGH HE WILL GET FAR LESS THAN HE WANTED THE SEEDS OF MR CLINTON'S COMMITMENT TO RUSSIA WERE SOWN DURING THE CAMPAIGN WHEN HE ACCUSED MR BUSH OF FAILING TO RISE TO A HISTORIC CHALLENGE AND MADE CLEAR THAT RUSSIA WAS HIS TOP FOREIGNPOLICY PRIORITY ONCE IN OFFICE MR CLINTON STEPPED OUT SMARTLY AND ACHIEVED EARLY SUCCESS IN HIS EFFORTS TO RALLY THE WORLD BEHIND BORIS YELTSIN THREE DAYS INTO HIS PRESIDENCY MR CLINTON MADE HIS FIRST CALL TO A FOREIGN LEADER MR YELTSIN IN LATE FEBRUARY LAWRENCE SUMMERS TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS SENT A LETTER TO HIS G7 COUNTERPARTS OUTLINING A STRATEGY FOR GETTING MORE MONEY FROM THE INTERNATIONAL MONETARY FUND FOR RUSSIA A STRATEGY THAT IS EXPECTED TO BEAR FRUIT TODAY WHEN THE IMF BOARD APPROVES A 15 BILLION LOAN THE LETTER INDICATED SOMEWHAT PREMATURELY THAT THE ADMINISTRATION HAD DECIDED TO PLACE ITS BETS ON MR YELTSIN AND HINTED AT THE NEED FOR BIG BUCKS TO HELP RUSSIA'S PRIVATIZATION EFFORT TO THE NEW TREASURY OFFICIALS AND TO OLD HANDS WHO HAD WORKED FOR MR SUMMERS'S FIERCELY INDEPENDENT PREDECESSOR DAVID MULFORD IT SEEMED A LOGICAL WAY TO SOUND OUT US ALLIES BUT THE LETTER CREATED PROBLEMS THE PRESIDENT'S LONGTIME FRIEND STROBE TALBOTT WHO OVERSEES US POLICY TOWARD RUSSIA FROM THE STATE DEPARTMENT WAS FURIOUS TO LEARN OF THE LETTER ONLY AFTER IT WAS SENT IN WHAT WAS INTENDED TO BE A COLLEGIAL ADMINISTRATION MR SUMMERS HAD TO SPEND MONTHS ESTABLISHING HIMSELF AS A TEAM PLAYER PUTTING ASIDE HIS EFFORTS TO CONVINCE THE SENATE TO ACCEPT HIS PROPOSALS TO STIMULATE THE DOMESTIC ECONOMY MR CLINTON IN EARLY APRIL HEADED FOR VANCOUVER TO MEET WITH MR YELSTIN THE GOAL WAS TO BOLSTER THE RUSSIAN LEADER IN THE FACE OF AN UPRISING FROM HIS LEGISLATURE AND A COMING PUBLIC VOTE OF CONFIDENCE BEFORE LEAVING MR CLINTON GOT HIS FIRST FULL BRIEFING ON THE PRIVATIZATION FUND HE LIKED IT HIS ENTHUSIASM GREW AS MR YELTSIN EXPLAINED THAT PRIVATIZATION OF SMALL ENTERPRISES WAS UNDER WAY BUT THAT HE NEEDED HELP IN PRIVATIZING BIG ONES THE BACKBONE OF THE RUSSIAN ECONOMY THE RUSSIAN PRESIDENT SAID THAT HE WOULD HAVE TROUBLE WITHOUT MONEY FROM THE WEST TO MODERNIZE THESE INDUSTRIAL DINOSAURS IN PUBLIC MR CLINTON SAID NOTHING IN WHAT WAS UNDERSTOOD AS A DOWN PAYMENT THOUGH HE ANNOUNCED THAT HE WOULD TRY TO SPEED DELIVERY OF 16 BILLION IN AID TO RUSSIA ALREADY APPROVED BY CONGRESS ON THE WAY HOME MR TALBOTT CONVENED A MEETING ABOARD AIR FORCE ONE WITH MR SUMMERS SAMUEL BERGER DEPUTY NATIONAL SECURITY ADVISER WHITE HOUSE STAFFER NICHOLAS BURNS AND OTHERS THE OBVIOUS TASK WAS TO DECIDE WHAT MORE SUBSTANTIAL AID THE US SHOULD PUT FORWARD AT A MEETING OF G7 FOREIGN AND FINANCE MINISTERS THAT WAS SCHEDULED IN TOKYO SEVERAL DAYS LATER WE PUT TOGETHER ON THE BASIS OF WHAT CLINTON HEARD FROM YELTSIN AN OUTLINE OF WHAT VANCOUVER II MIGHT LOOK LIKE MR TALBOTT SAYS THE PRIVATIZATION FUND WAS A TOP PRIORITY BUT THE GROUNDWORK HADN'T BEEN LAID WITH OTHER COUNTRIES MR CLINTON BARELY HAD TIME TO CALL JAPANESE PRIME MINISTER KIICHI MIYAZAWA AND GERMAN CHANCELLOR HELMUT KOHL TO ALERT THEM BEFORE THE MINISTERIAL MEETING HE DIDN'T CONTACT OTHER FOREIGN LEADERS UNTIL AFTERWARD NOR DID MR CLINTON SPEND MUCH TIME CONSULTING WITH CONGRESSIONAL LEADERS AIDES TO THE CHAIRMEN OF THE IMPORTANT APPROPRIATIONS SUBCOMMITTEES REP DAVID OBEY OF WISCONSIN AND SEN PATRICK LEAHY OF VERMONT AND TO REP LEE HAMILTON OF INDIANA CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE SAY THE LEGISLATORS HAD ONLY SCANT INFORMATION ABOUT WHAT THE US WAS PROPOSING IN TOKYO WHEN HE HAS MET WITH LAWMAKERS MR CLINTON HAS MOSTLY LISTENED SEN RICHARD LUGAR ONE OF THE RANKING GOP MEMBERS ON THE FOREIGN RELATIONS COMMITTEE RECALLS A MEETING INVOLVING ABOUT A DOZEN SENATORS AT THE WHITE HOUSE BEFORE PRESIDENT CLINTON DEPARTED FOR THE VANCOUVER SUMMIT SEN LUGAR AND SEVERAL OTHERS TOLD MR CLINTON THAT A FOREIGN AID REQUEST FOR RUSSIA WOULD BE A BIG BALLOON THAT WOULD BE SHOT DOWN MR CLINTON LISTENED SILENTLY A FEW WEEKS LATER WHEN HIS DOMESTIC STIMULUS PACKAGE WAS BEING REJECTED BY CONGRESS MR CLINTON PHONED SEN LUGAR AND WONDERED HOW THE RUSSIAN AID LEGISLATION COULD NOW CLEAR CONGRESS HE WAS ASKING HELP AND ADVICE SAYS SEN LUGAR I DECIDED TO NOT REMIND HIM OF OUR CONVERSATION BEFORE VANCOUVER I FRANKLY DIDN'T KNOW HOW HE WAS GOING TO DO IT THE TOKYO MEETING EXPOSED ANOTHER FAULT LINE INSIDE THE CLINTON ADMINISTRATION IF FOREIGN POLICY IS INDISTINGUISHABLE FROM ECONOMIC POLICY AS THE CLINTON ADMINISTRATION MAINTAINS THEN WHICH CABINET OFFICIAL IS NO 1 WHEN IT COMES TO RUSSIAN AID IS IT SECRETARY OF STATE CHRISTOPHER OR TREASURY SECRETARY BENTSEN BOTH VIE FOR THE HONOR OF BEING THE ELDER STATESMAN OF THE CLINTON ADMINISTRATION WITH HIS CONGRESSIONAL CONNECTIONS MR BENTSEN MAY BE MR CHRISTOPHER'S MATCH AT HOME BUT OVERSEAS THE SECRETARY OF STATE RANKS FIRST THE TWO TRAVELED TO TOKYO BUT IT WAS MR CHRISTOPHER'S PLANE HIS TRAVELING PRESS CORPS AND HIS SHOW MR BENTSEN WASN'T HAPPY THE PRIVATIZATIONFUND PROPOSAL LANDED WITH A THUD AT THE APRIL MEETING IN TOKYO SOME OF THE ALLIES GOT REAL NERVOUS ONE US OFFICIAL SAYS IN RETROSPECT IT MIGHT HAVE BEEN GOOD TO HAVE SOFTENED THEM UP A LITTLE BEFOREHAND THE US MADE PUBLIC ITS OFFER TO CONTRIBUTE 500 MILLION HOWEVER AND SAID IT ALSO WOULD COME UP WITH 13 BILLION MORE IN OTHER AID FOR RUSSIA EVER SINCE MR CLINTON HAS BEEN GIVING THE G7 AND OTHER PROSPECTIVE DONORS THE HARD SELL ON THE PRIVATIZATION FUND PROMOTING IT WITH OTHER LEADERS AT EVERY OPPORTUNITY BUT FINDING THEM RELUCTANT TO PUT UP ANY MONEY IN THE PAST TWO MONTHS HE HAS TALKED TWICE BY TELEPHONE TO MESSRS MIYAZAWA AND KOHL ON THIS ISSUE AFTER A MAY 18 MEETING OF TECHNICAL EXPERTS US OFFICIALS SENSED THAT GERMAN AND JAPANESE RESISTANCE WAS FADING SO EARLY THIS MONTH AT THE SAME TIME THAT MR CLINTON WAS REORGANIZING HIS WHITE HOUSE STAFF FOLLOWING A SERIES OF HIGHPROFILE EMBARRASSMENTS HE WROTE HIS G7 COUNTERPARTS AS WELL AS THE HEAD OF THE EUROPEAN COMMUNITY TRYING TO GET THEM TO SIGN ON BUT AS RECENTLY AS LAST WEEK JAPANESE FOREIGN MINISTER KABUN MUTO WAS QUOTED AS DESCRIBING THE ORIGINAL 4 BILLION PROPOSAL AS PREPOSTEROUS ALTHOUGH THE US WILL PUT IN JUST 1 FOR EVERY 3 THAT THE ALLIES CONTRIBUTE MR CLINTON CAN TELL THE TOKYO SUMMIT THAT THE HOUSE ALREADY HAS APPROVED THE WHOLE 500 MILLION US PLEDGE THE SENATE WHICH WILL BE TOUGHER TO CONVINCE HASN'T ACTED AS OF THIS WEEK US OFFICIALS WERE SPREADING THE WORD THAT AT THE SUMMIT THE HOPEDFOR 15 BILLION FROM OTHER COUNTRIES MIGHT TURN OUT TO BE AS LITTLE AS 375 MILLION AND MUCH OF THAT WOULD BE IN LOANS AND TECHNICAL ASSISTANCE RATHER THAN THE OUTRIGHT GRANTS IN ADDITION TO THEIR OTHER LENDING INTERNATIONAL FINANCIAL INSTITUTIONS ARE EXPECTED TO CHIP IN ANOTHER 1 BILLION OR SO HALF OF THE ORIGINAL US GOAL TRYING TO PUT THE BEST FACE ON THE OUTCOME US OFFICIALS NOW CHARACTERIZE THIS AS THE FIRST PHASE OF WHAT THEY HOPE WILL BE A BIGGER FUND ALONG THE WAY ONE PROBLEM HAS BEEN THAT THE CLINTON MACHINERY DOESN'T YET WORK AS WELL AS IT SHOULD A FEW WEEKS AGO MR BENTSEN WENT TO MOSCOW HOPING TO BUTTRESS THE CASE FOR THE PRIVATIZATION FUND AND TO ENHANCE HIS STATURE AS AN INTERNATIONAL FIGURE THE TRIP WAS TO BE A CELEBRATION OF THE CLINTON THEME OF FOREIGN POLICY AS ECONOMIC POLICY MR BENTSEN MET WITH OFFICIALS OVERSEEING PRIVATIZATION AND TOURED A NEWLY PRIVATIZED FOOD WAREHOUSE WITH TELEVISION CAMERAS IN TOW THE HIGH POINT WAS TO BE AN AUDIENCE WITH MR YELTSIN AT WHICH MR BENTSEN WOULD DELIVER A PERSONAL NOTE FROM MR CLINTON BUT WHEN MR BENTSEN ARRIVED IN MOSCOW LATE THE NIGHT BEFORE THE YELTSIN MEETING HIS AIDES WERE ALARMED TO DISCOVER THAT THE LETTER WASN'T WAITING FOR THEM AT THE US EMBASSY AS EXPECTED AFTER FRANTIC CALLS TO WASHINGTON THEY DISCOVERED THAT THE WHITE HOUSE STAFF HADN'T EVEN TAKEN THE LETTER TO THE PRESIDENT FOR HIS SIGNATURE YET AFTER A FEW MORE FRANTIC CALLS AND A SLEEPLESS NIGHT FOR SOME OF MR BENTSEN'S AIDES THE LETTER DULY SIGNED AND FAXED ARRIVED THE NEXT MORNING 9306300044 930630 BUSINESS BRIEFS REYNOLDS & REYNOLDS CO ACQUIRED COIN INC FOR 30 MILLION CONTINENTAL MEDICAL SYSTEMS INC AGREED TO DEVELOP AND MANAGE A 30BED COMPREHENSIVE MEDICAL REHABILITATION UNIT FOR HURLEY MEDICAL CENTER IN FLINT MICH GENERAL SIGNAL CORP SIGNED A LETTER OF INTENT TO SELL ITS GCA TROPEL PRECISION OPTICS UNIT TO THE COMPANY'S MANAGEMENT TURNER CONSTRUCTION CO SECURED THE SECOND PHASE OF A CONTRACT WITH CIRCUIT CITY STORES INC TO RENOVATE SOME OF ITS CONSUMER ELECTRONICS STORES HERMAN'S WORLD OF SPORTING GOODS GOT A 120DAY EXTENSION THROUGH NOV 12 OF THE EXCLUSIVE RIGHT TO FILE A REORGANIZATION PLAN FROM THE US BANKRUPTCY COURT A ZAPATA CORP UNIT AGREED TO PURCHASE THE NATURAL GAS MARKETING GATHERING AND PROCESSING PLANT INTERESTS OF CLOSELY HELD STELLAR COS OF HOUSTON FOR 16 MILLION CONSOLIDATED RAIL CORP WILL INVEST 21 MILLION FOR 303 SPECIAL RAILCARS MADE BY THRALL CAR MANUFACTURING CO 9306300043 930630 MARKETING & MEDIA ADVERTISING CAMPBELL SOUP PULLS MAIN DISH FROM BACKER SERVES IT TO BBDO BY KEVIN GOLDMAN CAMPBELL SOUP STIRRED THE POT YESTERDAY REMOVING ITS FLAGSHIP REDANDWHITE BRAND'S 45 MILLION IN AD BILLINGS FROM BACKER SPIELVOGEL BATES AND ASSIGNING IT TO RIVAL BBDO BACKER OWNED BY SAATCHI & SAATCHI PLC WILL TAKE ON TWO SMALLER CAMPBELL ACCOUNTS THAT HAD BEEN AT BBDO THE CHUNKY LINE AND THE SWANSON BROTH ACCOUNT BACKER ALSO RETAINS ADVERTISING FOR THE SOCALLED DRY SOUPS THOSE THAT COME IN POUCHES INSTEAD OF CANS AS WELL AS COMMERCIALS FOR CAMPBELL'S SOUPS AS A COOKING INGREDIENT BUT THE SHIFT MARKS A CLEAR VICTORY FOR OMNICOM GROUP'S BBDO WHICH HAD FIRST HANDLED THE MAJOR SOUP ACCOUNT ONLY TO LOSE IT TO WHAT WAS THEN KNOWN AS BACKER & SPIELVOGEL 13 YEARS AGO BBDO ALSO TAKES AWAY CAMPBELL'S HEALTHY REQUEST LINE OF SOUPS FROM BACKER AND KEEPS THE HOME COOKIN' BRAND ALTHOUGH CAMPBELL AND BACKER SAY THAT BACKER'S BILLINGS WITH THE CLIENT WON'T BE REDUCED BY THE CHANGE THE UBIQUITOUS REDANDWHITE BRAND WAS A CORNERSTONE OF THE SHOP THE AGENCY'S ONLY RECENT WIN IN NEW BUSINESS WAS THE TRANS WORLD AIRLINES ACCOUNT WHICH ISN'T A MAJOR REVENUE PRODUCER WITH CLIENTS GENERALLY CUTTING BACK ON AD SPENDING THAT ISN'T A HEALTHY TREND A BACKER SPOKESWOMAN SAID THE AGENCY IS DELIGHTED WITH THE NEW ACCOUNT LINEUP AT CAMPBELL WE HAVE A STRONG AND GROWING RELATIONSHIP WITH CAMPBELL WE LOOK FORWARD TO THE CREATIVE CHALLENGE OF WORKING ON ANOTHER ONE OF THEIR BRANDS CARL SPIELVOGEL BACKER'S CHAIRMAN AND CHIEF EXECUTIVE WAS TRAVELING YESTERDAY AND UNAVAILABLE FOR COMMENT THE SHIFT CAME AFTER A QUIET REVIEW THAT BEGAN IN MARCH BETWEEN THE TWO AGENCIES WHICH WERE ASSIGNED BY THE CAMDEN NJBASED CLIENT TO DEVISE A CAMPAIGN THAT WOULD PROMOTE THE USE OF SOUP SINCE CAMPBELL HOLDS A COMMANDING LEAD OVER ITS RIVALS THE COMPANY FIGURES THAT IF SOUP CONSUMPTION INCREASES IT WILL BE THE PRIME BENEFICIARY THAT WOULD REQUIRE CONVINCING CONSUMERS TO BUY SOUP YEARROUND EVEN DURING THE HOT SUMMER MONTHS WHEN CAMPBELL TYPICALLY PULLS BACK AND CONSUMPTION DECLINES TO THAT END CAMPBELL IS LIKELY TO ADVERTISE ITS PRODUCTS ALL YEAR INSTEAD OF GOING ON HIATUS IN THE SUMMER WHEN THE PROSPECT OF SLURPING A STEAMING BOWL OF SAY CHICKEN NOODLE ITS TOP SELLER SEEMS FARFETCHED PART OF WHAT WE'RE DOING IS GOING TO ELIMINATE THE TERMINOLOGY SOUP SEASON' CAMPBELL'S SPOKESMAN SAYS WE WANT FULL TIME CONSUMPTION CAMPBELL IS ENJOYING HEALTHY GROWTH IN THE CANNED SOUP CATEGORY WHICH HAD TOTAL SALES OF 23 BILLION FOR THE 52WEEK PERIOD ENDING LAST MARCH 13 ACCORDING TO AC NIELSEN FIGURES CAMPBELL'S ROSE 78 TO 17 BILLION FOR THE PERIOD TO CAPTURE A COMMANDING 75 SHARE THE CLOSEST COMPETITOR PET INC'S PROGRESSO DIVISION HAD SALES OF 1812 MILLION OR AN 8 MARKET SHARE AND 63 GROWTH ONE CASUALTY OF THE NEW CAMPAIGN MAY BE THE CUDDLY CAMPBELL KIDS WHO WERE RECENTLY BROUGHT BACK BY BACKER TO APPEAR IN THE SOUP AND SANDWICH CAMPAIGN AND THE OLD STANDBY SLOGAN M'M M'M GOOD NEITHER ASPECT WAS INCLUDED IN BBDO'S PRESENTATION TO CAMPBELL ACCORDING TO INDUSTRY OFFICIALS A CAMPBELL SPOKESMAN SAYS HOWEVER IT MAY BE TOO SOON TO SAY FAREWELL TO THE CAMPBELL KIDS WE HAVEN'T DETERMINED HOW THE ADVERTISING WILL BE FINALIZED DETAILS OF BBDO'S NEW CAMPAIGN WHICH BREAKS IN A FEW MONTHS COULDN'T BE DETERMINED ALTHOUGH INDUSTRY EXECUTIVES NOTE IT WON'T FEATURE CELEBRITIES OR TRADITIONAL SOUP COMMERCIALS THERE ISN'T A VOICE OVER TELLING YOU HOW WONDERFUL THE PRODUCT IS EITHER SAYS ONE EXECUTIVE THE NEWS OF THE SHIFT WAS MM MM GREAT AT BBDO ACCORDING TO A MEMO TO THE BBDO STAFF YESTERDAY FROM THOMAS H CAREY PRESIDENT AND CHIEF OPERATING OFFICER OF BBDO NEW YORK IT SHOULD BE BBDO WHICH HAD CAMPBELL BILLINGS OF ABOUT 20 MILLION IS EXPECTED TO AT LEAST DOUBLE ITS BILLINGS WITH THE NEW MOVES I'M DELIGHTED SAYS PHILIP B DUSENBERRY VICE CHAIRMAN OF BBDO IT'S ALWAYS GREAT AND GRATIFYING TO WIN BACK AN ACCOUNT THAT YOU HAVE LOST GOLD GREENLEES TROTT PLC THE BRITISH AGENCY HOLDING COMPANY AND SWISS AGENCY GGK INTERNATIONAL SAID THEY INTEND TO MERGE TO FORM A NEW INTERNATIONAL NETWORK WITH ESTIMATED COMBINED BILLINGS OF 125 BILLION DUBBED GGK/GGT WORLDWIDE THE UNION BRINGS TOGETHER TWO REGIONAL MIDSIZE CONCERNS AT A TIME WHEN AGENCIES ARE PUSHING GLOBAL ADVERTISING CAPABILITIES FOR INTERNATIONAL CLIENTS THIS IS A GOOD MERGER SAID GUY LAMMING AN ANALYST WITH JAMES CAPEL & CO OF LONDON TOGETHER THEY WILL BE A MUCH MORE FORMIDABLE FORCE GOLD GREENLEES THE PARENT OF GGT ADVERTISING OF LONDON AS WELL AS SUCH US SHOPS AS GSD&M OF AUSTIN TEXAS JOEY REIMAN AGENCY OF ATLANTA AND MARTINWILLIAMS OF MINNEAPOLIS HAS ESTIMATED BILLINGS OF 743 MILLION ACCORDING TO ADVERTISING AGE GGK BASED IN ZURICH SWITZERLAND HAS BILLINGS OF 509 MILLION FROM OFFICES IN CONTINENTAL EUROPE LONDON AND SUCH EMERGING EASTERN EUROPEAN MARKETS AS BUDAPEST PRAGUE AND WARSAW POLAND TOGETHER THE NEW NETWORK CLAIMS 40 OFFICES IN 26 COUNTRIES AN INFOMERCIAL HOST AND PRODUCER AGREED TO PAY 275000 TO SETTLE FEDERAL TRADE COMMISSION CHARGES THAT FOUR OF HIS LONGFORM COMMERCIALS WERE MISLEADING AND DECEPTIVELY POSED AS PROGRAMMING NOT ADVERTISING ON THE AIR THE FTC CITED THREE INFOMERCIALS THAT MICHAEL LEVEY PRODUCED WHILE A SHAREHOLDER AND EMPLOYEE AT TWIN STAR PRODUCTIONS INC AS FALSE AND UNSUBSTANTIATED ONE ENTITLED THE MICHAEL REAGAN SHOW HAD THE FORMER PRESIDENT'S SON PROMOTING THE EUROTRYM DIET PATCH AS A WEIGHTLOSS AID ANOTHER ENTITLED BREAKTHROUGH '88 PROMOTED FOLIPLEXX AS A BALDNESS REMEDY AND ANOTHER ONE CALLED LET'S TALK PROMOTED A REMEDY FOR IMPOTENCE CALLED YBRON THE FTC ALSO CITED A FOURTH INFOMERCIAL PART OF THE AMAZING DISCOVERIES SERIES FOR THE MAGIC WAND IMMERSIONSTYLE KITCHEN MIXER WHICH WAS SHOWN CRUSHING A WHOLE PINEAPPLE IN SECONDS AND WHIPPING SKIM MILK INTO A MOUSSE THE FTC FOUND THAT THE FEATS HAD BEEN DOCTORED MR LEVEY PRODUCED AND HOSTED THE INFOMERCIAL FOR MEDIA ARTS INTERNATIONAL A UNIT OF NATIONAL MEDIA CORP MR LEVEY IS CHAIRMAN AND CHIEF EXECUTIVE OF POSITIVE RESPONSE MARKETING OF TOPANGA CALIF STEPHEN WEBER PRESIDENT AND CHIEF OPERATING OFFICER OF THE FIRM NOTED THAT THE INFOMERCIALS HADN'T AIRED RECENTLY AND THAT POSITIVE RESPONSE NOW TESTS PRODUCTS IN ITS INFOMERCIALS WITH ATTORNEYS AND CONSUMERS WE MAKE SURE THE CLAIMS ARE SUBSTANTIATED HE SAID WHO'S NEWS WPP GROUP'S OGILVY & MATHER NAMED ROBERT C CHANDLER EXECUTIVE CREATIVE DIRECTOR OF ITS LOS ANGELES OFFICE A NEW POSITION WORKING ON ACCOUNTS INCLUDING MICROSOFT CORP MATTEL INC AND PARAMOUNT COMMUNICATIONS' PARAMOUNT PICTURES MR CHANDLER AGE 46 HAD BEEN SENIOR VICE PRESIDENT AND CREATIVE DIRECTOR AT THE LOS ANGELES OFFICE OF OMNICOM GROUP'S BBDO 9306300042 930630 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL IRS PROMISES TO NONFILERS ATTRACT MANY RETURNS BUT THE RESULTS AREN'T CLEAR THE IRS HAS BEEN OFFERING LENIENT PAYMENT TERMS AND PROSECUTION WAIVERS TO NONFILERS WHO REJOIN THE SYSTEM VOLUNTARILY IN EIGHT MONTHS OF FISCAL 1993 THE IRS GOT 35415 MORE DELINQUENT RETURNS THAN IN THE LIKE 1992 PERIOD AND 402019 MORE THAN IN 1991 REVENUE TOPPED 1992'S BY 499 MILLION SOME 30 OF THE FILERS GOT REFUNDS A THIRD QUALIFIED TO PAY IN INSTALLMENTS BUT IT IS TOO EARLY TO JUDGE THE PROGRAM'S EFFECTIVENESS DIRECTOR RICHARD VOSKUIL TOLD THE COMMISSIONER'S ADVISORY GROUP LAST WEEK THE IRS DOESN'T HAVE SPECIFIC STATISTICS ON THE PROGRAM AND DOESN'T KNOW EXACTLY HOW MANY FILERS WERE INSPIRED BY ITS OFFER IT HASN'T TRIED AN ALLOUT NATIONAL PROMOTION AND CURRENT EFFORTS VARY FROM DISTRICT TO DISTRICT THE AGENCY STILL IS TESTING STRATEGIES TO REACH THE ESTIMATED 98 MILLION NONFILERS AND CONSIDERING NEW METHODS SUCH AS CONTACTS THROUGH EMPLOYERS THE PROGRAM HAS BEEN EXTENDED WITH LITTLE PUBLICITY FROM INCOME TAXES TO ALL KINDS OF RETURNS SUCH AS THOSE FOR ESTATE GIFT AND PAYROLL TAXES MISSING IN INACTION WHY HAVE 1992 RETURN FILINGS FALLEN 12 MILLION SHORT THROUGH JUNE 11 THE NUMBER OF RETURNS WAS THAT FAR BELOW IRS EXPECTATIONS ALTHOUGH TAX PAYMENTS WERE UP BY 79 BILLION AS EXPECTED THE IRS ALSO HAS PAID FEWER REFUNDS THAN IN THE PAST AND RECEIVED MORE REQUESTS TO DELAY FILING TO AUG 16 WHILE IT WON'T KNOW FOR MONTHS THE IRS THINKS THE CAUSE OF THE SHORTFALL WAS GEORGE BUSH'S ORDER LAST YEAR TO LOWER WITHHOLDING TAXES THAT IS MANY PEOPLE WHO EXPECTED REFUNDS MAY HAVE FOUND THEY OWED TAXES AND NEITHER FILED NOR SOUGHT FILING EXTENSIONS THESE TAXPAYERS THUS MAY BECOME OBJECTS OF THE NEW NONFILER PROGRAM THE SHORTFALL ALSO MAY BE CAUSED BY NEWCOMERS TO THE TAX SYSTEM AND BY PEOPLE WHO MARRIED AND FILED JOINT RETURNS AFTER FILING SINGLY BEFORE THE NUMBER OF ELECTRONICALLY FILED RETURNS GREW 13 TO 123 MILLION THIS YEAR BUT FELL SHORT OF THE 14 MILLION THE IRS HOPED FOR ESTATES AND TRUSTS ARE HIT HARDER BY THE SENATE'S CAPITALGAINS PROVISION TRUST EXPERTS ALREADY WERE COMPLAINING ABOUT THE HOUSE TAX BILL THE 31 TOP RATE NOW APPLIES TO TAXABLE INCOME OVER 53500 FOR SINGLE FILERS AND OVER 11250 FOR ESTATES AND TRUSTS THE HOUSE WOULD ADD RATES OF 36 FOR SINGLES WITH INCOME OVER 115000 AND 396 FOR INCOME OVER 250000 BUT IT WOULD TAX ESTATE AND TRUST INCOME AT 31 OVER 3500 36 OVER 5500 AND 396 OVER 7500 THE SENATE ADOPTED THESE RATES FOR 1994 AND ADDED A CAPITALGAINS KICKER FOR PEOPLE WITH INCOME OVER 250000 AND FOR ESTATES AND TRUSTS WITH INCOME OVER 7500 OTHERS WOULD CONTINUE TO PAY A 28 TOP RATE ON CAPITAL GAINS BUT THESE TAXPAYERS WOULD PAY 294 THIS YEAR AND 308 IN 1994 THERE IS LITTLE CHANCE OF ESCAPE SAYS BERNARD BARNETT OF BDO SEIDMAN CPAS ESTATES AND TRUSTS CAN AVOID HIGH INCOME TAXES BY PASSING INCOME ON TO BENEFICIARIES WHO MAY PAY LESS TAX ON IT BUT TAX LAW TREATS CAPITAL GAINS AS PRINCIPAL AND GENERALLY DOESN'T LET ESTATES AND TRUSTS DISTRIBUTE THEM AS INCOME UNTIL THE ENTITY IS TERMINATED OTHER TERMS FOR PAYING OUT UNTAXED CAPITAL GAINS TO BENEFICIARIES ARE OFTEN IMPOSSIBLE TO SATISFY BARNETT SAYS JOAN RIVERS'S WRITERS NOT THOSE WHO DISH THE DIRT BUT AIDES TO HER PERSONAL CORPORATION DRAFTED FAULTY LEGAL PAPERS RELATED TO DISABILITY INSURANCE FOR THE COMEDIENNE THE TAX COURT SAYS THUS THE COURT SAYS THE CORPORATION MAY NOT DEDUCT 115492 IN PREMIUMS PAID TO LLOYD'S OF LONDON STABBED IN THE HEART BY A ROBBER IN WASHINGTON DC MARK MARION AKINS OF DUNWOODY GA DIED BUT WAS REVIVED THE TAX COURT SAYS THE COURT IS SYMPATHETIC TO HIS SUFFERING BUT IT REFUSES TO HELP AKINS PUNISH THE FEDERAL GOVERNMENT FOR NEGLIGENT LAW ENFORCEMENT BY EXCUSING HIM FROM PAYING TAXES DON'T TELL CALIFORNIA THAT HERE I COME CORPORATE DIRECTORS FROM OUTSIDE THAT STATE ARE SUBJECT TO WITHHOLDING OF ITS INCOME TAX WHEN THEIR BOARDS MEET THERE ALI FARHAT OF COOPERS & LYBRAND CPAS NOTES PARTNERS ARE RELIEVED BY THE IRS'S RULING ON AN INTEREST IN PROFITS THIS TRICKY ISSUE AFFECTS PEOPLE WHO GET RIGHTS TO SHARE IN A PARTNERSHIP'S PROFITS AS PAY FOR SERVICES IS THE MERE RECEIPT OF SUCH AN INTEREST BEFORE ANY PROFITS ARE SHARED TAXABLE THE QUESTION ARISES MOSTLY IN REALESTATE CIRCLES BUT HAS BEEN TROUBLING FOR ALL PARTNERSHIPS SINCE A 1990 TAX COURT DECISION THE COURT SAID WILLIAM G CAMPBELL WAS TAXABLE AT THE TIME HE RECEIVED 15 INTERESTS IN THE EVENTUAL PROCEEDS OF SOME REALESTATE PARTNERSHIPS THAT HE HAD HELPED TO FORM IN 1991 EIGHTHCIRCUIT APPEALS JUDGES SAID THE INTERESTS HAD NO TAXABLE VALUE WHEN CAMPBELL GOT THEMBUT DIDN'T SETTLE THE UNDERLYING ISSUE OF TAXABILITY NOW THE IRS SEEMS TO HAVE DECIDED THE ISSUE ISN'T WORTH PURSUING FOR LEGAL ENDS OR FOR REVENUE REVENUE PROCEDURE 9327 SAYS RECEIPT OF A PROFIT INTEREST IN RETURN FOR SERVICES WON'T BE TREATED AS TAXABLE IN MOST CASES IT LISTS EXCEPTIONS MEANT TO FORESTALL ABUSIVE MANEUVERS TO CONVERT ORDINARY INCOME INTO CAPITAL GAIN TAXED AT A LOWER RATE THE RULING FAVORS PROFITS INTEREST OVER CORPORATE STOCK FOR COMPENSATION SAYS FORREST MILDER A BOSTON ATTORNEY BRIEFS FEES FOR WATER AND SEWER SERVICES WOULD BE DEDUCTIBLE TO THE EXTENT THEY EXCEEDED 1 OF ADJUSTED GROSS INCOME UNDER A BILL BY MASSACHUSETTS SENS KERRY AND KENNEDY LUXEMBOURG AND THE US PLAN INCOMETAXTREATY TALKS IN DECEMBER 9306300041 930630 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BRIDGE OIL USA INC AN OFFERING OF 100 MILLION OF SENIOR NOTES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP CORT FURNITURE RENTAL CORP AN OFFERING OF 925 MILLION OF SENIOR NOTES DUE 2003 VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND BT SECURITIES CORP FRESH CHOICE INC AN OFFERING OF NEARLY 14 MILLION COMMON SHARES VIA ALEX BROWN AND SONS INC AND MONTGOMERY SECURITIES RANDOM ACCESS INC AN OFFERING OF 2092500 SHARES OF COMMON STOCK VIA CHATFIELD DEAN & CO INC IS THE LEAD UNDERWRITER TACO CABANA INC AN OFFERING OF 25 MILLION SHARES OF COMMON STOCK VIA MONTGOMERY SECURITIES UNITED WISCONSIN SERVICES INC AN OFFERING OF 40 MILLION OF SUBORDINATED NOTES VIA ROBERT W BAIRD & CO AND DAIN BOSWORTH INC 9306300040 930630 WHO'S NEWS SASKATCHEWAN OIL SAYS RENNER RESIGNED AS PRESIDENT CHIEF REGINA SASKATCHEWAN SASKATCHEWAN OIL & GAS CORP SAID ITS PRESIDENT AND CHIEF EXECUTIVE OFFICER TED RENNER RESIGNED EFFECTIVE IMMEDIATELY HE WAS SUCCEEDED BY SASKOIL CHAIRMAN THEODORE HANLON WHO WILL SERVE AS ACTING CHIEF EXECUTIVE UNTIL SOMEONE ELSE IS APPOINTED THE COMPANY SAID THE ABRUPT DEPARTURE OF MR RENNER 48 YEARS OLD COMES AMID SPECULATION THAT HE MAY HAVE BEEN OUSTED SINCE JOINING THE OILANDGAS PRODUCER IN 1987 HE PRESIDED OVER AN AGGRESSIVE SPENDING PROGRAM FINANCED MAINLY THROUGH DEBT WILF GOBERT AN ANALYST WITH PETERS & CO SAID THAT DURING MR RENNER'S TENURE AS CHIEF EXECUTIVE SASKOIL'S STOCK PLUNGED FROM ABOUT 16 CANADIAN DOLLARS US12 A SHARE TO A RECENT LOW NEAR C4 A SHARE HE SAID THE COMPANY CUT BACK ITS ACTIVITIES BECAUSE OF ITS DEBT LOAD SASKOIL SAID MR RENNER WILL REMAIN A DIRECTOR AND STEVE BALOG A VICE PRESIDENT WAS APPOINTED ACTING CHIEF OPERATING OFFICER MR HANLON ALSO PRESIDENT OF CALGARY OIL FIELD SERVICES COMPANY SAGE GROUP INC HAS BEEN SASKOIL'S CHAIRMAN SINCE 1991 THE COMPANY SAID IT ADDED THAT MR RENNER'S RESIGNATION WILL DELAY A C975 MILLION US761 MILLION OFFERING OF 10 MILLION OF THE COMPANY'S COMMON SHARES BECAUSE SECURITIES REGULATORS REQUIRE A FORMAL AMENDMENT OF THE ISSUE'S FINAL PROSPECTUS THE COMPANY SAID IT EXPECTS THE OFFERING TO CLOSE ON OR ABOUT JULY 9 MR HANLON COULD NOT BE REACHED FOR COMMENT 9306300039 930630 REVIEW & OUTLOOK EDITORIAL ASIDES GOVERNMENT BY PROXY MANY WHO SPENT LAST WEEKEND WATCHING THE BASECLOSING COMMISSION AT WORK ON CSPAN HAD TO MARVEL AT WHAT A SIMILAR PANEL COULD DO WITH SAY FARM AND WATER POLICY IN FACT INTELLIGENT HARDWORKING PEOPLE RENDERING RATIONAL BUT COMPASSIONATE JUDGMENTS COULD CLEAN UP A LOT OF THE MESS THAT CONGRESS CREATES IF ONLY THE MAGICAL CONGRESSIONAL COALITION THAT BROUGHT ABOUT THE MILITARYBASE PANEL COULD BE MUSTERED A FEW MORE TIMES 9306300038 930630 REVIEW & OUTLOOK EDITORIAL REMEMBER GRENADA IS THERE A POLITICAL BANK SOMEWHERE IN WHICH WE CAN DEPOSIT ALL THE LIBERAL CAPITAL BEING COMMITTED ON BEHALF OF BILL CLINTON'S BAGHDAD BOMBING MEMBERS OF CONGRESS MOST EDITORIAL PAGES TV REPORTERS NEWS MAGAZINES EVEN NATIONAL PUBLIC RADIO COMMENTATORS ARE BACKING THE CLINTON TOMAHAWK SHOWER WHAT'S GOING ON HERE MAYBE THE NEARLY UNIVERSAL SUPPORT FOR MR CLINTON'S DECISION TO SEND 23 CRUISE MISSILES INTO BAGHDAD WITHOUT EVEN A NOD IN THE DIRECTION OF CONGRESS IS EXPLAINABLE SIMPLY AS A MATTER OF WHOSE POLITICAL PARTY SITS IN THE WHITE HOUSE GIVEN THE STATE OF OUR RECENT POLITICS THE PUBLIC COULD BE FORGIVEN SUCH CYNICISM BUT DEMOCRATS RUN THE RISK OF BEING WRITTEN OFF AS FUNDAMENTALLY UNSERIOUS AND UNRELIABLE ON FOREIGN POLICY MATTERS UNLESS THEIR ACTIONS AND STATEMENTS COUNT FOR SOMETHING BEYOND FLIPFLOPPING PARTISANSHIP SO WE'RE GOING TO ASSUME THAT THE BOMBBAGHDAD LIBERALS HAVE GROWN IN UNDERSTANDING HOW AND WHY THE US DEPLOYS MILITARY POWER HOW FAR SOME OF THEM HAVE COME IS EVEN CLEARER WHEN SET AGAINST WHERE THEY WERE ON GRENADA THE BOMBING OF LIBYA AND THE GULF WAR THE DAY THAT RONALD REAGAN ORDERED US TROOPS ONTO GRENADA IN OCTOBER 1983 HOUSE SPEAKER TIP O'NEILL DENOUNCED IT AS GUNBOAT DIPLOMACY WITH OTHER DEMOCRATS SWEATING ABOUT THE LEGALITY UNDER US AND INTERNATIONAL LAW THEN CAME THE NEWS FOOTAGE OF US MEDICAL STUDENTS KISSING THE AMERICAN TARMAC AFTER LIBERATION FROM THE ISLAND'S CUBANLED COUP TO INSTALL A MARXIST GOVERNMENT AND GRENADA SUDDENLY BECAME A BIPARTISAN EFFORT EXCEPT FOR SEVEN HOUSE DEMOCRATS WHO ENTERED A RESOLUTION TO IMPEACH MR REAGAN IN APRIL 1986 PRESIDENT REAGAN ORDERED THE BOMBING OF QHADAFI'S LIBYA IN RETALIATION HE SAID FOR LIBYA'S ROLE IN BLOWING UP A WEST BERLIN DISCOTHEQUE FULL OF AMERICAN SOLDIERS KILLING ONE AND INJURING 60 TO THE CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS COMMITTEE DANTE FASCELL THIS WAS A NEW WAY OF GOING TO WAR WHICH TOTALLY BYPASSES THE CONSTITUTION MR REAGAN INFORMED CONGRESS OF THE TRIPOLI RAID THREE HOURS BEFORE THE BOMBING BEGAN ARGUING THAT HE WAS USING HIS EXECUTIVE AUTHORITY IN SELFDEFENSE AGAINST TERRORISM THIS SET OFF A FUSILLADE OF DEMOCRATIC ORATION ON THE WAR POWERS ACT BY CONTRAST THE CLINTON WHITE HOUSE INFORMED THE CONGRESSIONAL LEADERSHIP BETWEEN 420 PM AND 500 PM SATURDAY AFTER THE MISSILE ATTACK THE FORMER NAYSAYERS APPROVE IN THE VIEW OF REP LEE HAMILTON WE WENT AFTER THE PLACE WHERE MUCH OF THESE DASTARDLY DEEDS ARE CONTEMPLATED AND PLANNED REP JOE MOAKLEY THE PRESIDENT SAID WE DID IT BECAUSE THEY WERE ADVOCATING BUSH'S ASSASSINATION I CAN BUY THAT WE LIVE IN VIOLENT TIMES AGAIN ASSUMING THE MOST POSITIVE INTERPRETATION WE TAKE THIS TO MEAN THAT PERHAPS THE DEMOCRATS HAVE BEGUN TO UNDERSTAND THAT THE WAR POWERS ACT A KIND OF EXCLUSIONARY RULE FOR CLEANING UP CRIMERIDDEN FOREIGN NEIGHBORHOODS IS AN IMPEDIMENT TO THE NEED FOR QUICK DECISIVE PRESIDENTIAL ACTION ON BEHALF OF US INTERESTS IN VIOLENT TIMES THE BUILDUP FOR THE GULF WAR IN LATE 1990 OF COURSE WAS A PUBLIC EVENT THAT GAVE 45 DEMOCRATS TIME TO FILE A LAWSUIT TO BLOCK IT WITHOUT CONGRESSIONAL IMPRIMATUR AMONG THEM LEON PANETTA NOW THE CLINTON BUDGET CHIEF FOR REP SCHROEDER THE BUSH BUILDUP WAS A MANUAL FOR HOW TO USE YOUR EXECUTIVE POWER WITHOUT ANYBODY CHALLENGING YOU TED KENNEDY TOOK TO THE SENATE FLOOR TO ANNOUNCE THAT ONLY CONGRESS CAN STOP THIS SENSELESS MARCH TOWARD WAR CONCURRENT WITH ALL THIS DEMOCRATIC DOVISHNESS THE KINDS OF DEMOCRATS THAT GOV BILL CLINTON WAS HANGING OUT WITH THE MODERATES HAD CONCLUDED THAT THE LIBERALS' REPEATED CARPING ABOUT THE USE OF FORCE HAD PUT THE DEMOCRATS OUTSIDE THE PUBLIC MAINSTREAM MR CLINTON'S CAMPAIGN HAD A DISTINCTLY MORE ROBUST ATTITUDE TOWARD THE USE OF MILITARY FORCE THAN WHAT HAD BEEN PREACHED AS DEMOCRATIC GOSPEL THE PAST 12 YEARS THAT TOUGHER MESSAGE OF COURSE GOT TANGLED UP IN HIS DRAFT STATUS AND THEN GAYS IN THE MILITARY BUT AS OF SUNDAY THE QUESTION OF WHETHER MR CLINTON WOULD PERFORM AS COMMANDER IN CHIEF IS SETTLED WE'RE MUCH LESS CERTAIN THOUGH OF WHERE THE DEMOCRATS WILL BE THE NEXT TIME POSSIBLY THE BOMBBAGHDAD DEMOCRATS ARE ESSENTIALLY CASTING THEIR SUPPORT FOR USING THE UNMANNED TOMAHAWK CRUISE MISSILE WHICH CAN FLY SOME 1200 MILES GUIDED BY AN INTERNAL ELECTRONIC TERRAIN MAP TO HIT A SINGLE BUILDING IF INDEED THIS IS BIPARTISAN SUPPORT FOR ACTUALLY USING CRUISE MISSILES AGAINST PIRATE NATIONS WE'VE ACHIEVED A MAJOR ADVANCE IN US MILITARY POLICY BUT IF THE ISSUE BECOMES NORTH KOREAN NUCLEAR REACTORS OR DIRECTLY HELPING THE BOSNIAN MUSLIMS WE SUSPECT THE DEMOCRATIC CHORUS WILL REPRISE ITS HYMNS TO DIPLOMACY AND THE UNITED NATIONS AS THE BAGHDAD DISSENTERS ARE ALREADY DOING FOR NOW THE DEMOCRATS MAY REGARD THIS AS A TIME WHEN THERE WERE RELATIVELY FEW JELLYFISH IN THE WATER IT HAS BEEN NOTED 9306300037 930630 IRAQ IS REPORTED SET TO REBUILD ARMS PROGRAM PLANS FOR NUCLEAR WEAPONS GET OUTSIDE ASSISTANCE HOUSE PANEL IS TOLD BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESPITE AN INTERNATIONAL EMBARGO IRAQ IS POISED TO REBUILD ITS NUCLEAR WEAPONS PROGRAM USING ITS OWN RESOURCES AND HELP FROM OVERSEAS ACCORDING TO WITNESSES WHO TESTIFIED BEFORE A HOUSE PANEL ROBERT L GALLUCCI AN ASSISTANT SECRETARY OF STATE TOLD THE HOUSE FOREIGN RELATIONS COMMITTEE THAT WHILE SADDAM HUSSEIN'S NUCLEAR PROGRAM WAS KNOCKED FLAT BY BOMBING DURING THE PERSIAN GULF WAR AND ALSO BY THE LATER UN INSPECTION TEAMS THE US BELIEVES THE IRAQI DICTATOR IS COMMITTED TO REBUILDING IT JULES KROLL CHAIRMAN OF KROLL ASSOCIATES A NEW YORK INVESTIGATING FIRM THAT IS TRACKING IRAQ'S HIDDEN ASSETS ABROAD SAID THE COUNTRY STILL HAS BILLIONS OF DOLLARS BEING FUNNELED THROUGH A FINANCIAL NETWORK BASED IN AMMAN JORDAN GENEVA AND VIENNA THE NETWORK IMPORTS ALL TYPES OF MATERIALS HE SAID MR KROLL'S FIRM HAS BEEN RETAINED BY KUWAIT TO IDENTIFY ASSETS ALLEGEDLY STOLEN BY IRAQ IN ADDITION MR KROLL WARNED THAT IRAQ'S NEIGHBORS TURKEY IRAN AND SYRIA ARE CONTRIBUTING TO SANCTIONSBUSTING ACTIVITIES IF ONE WERE TO STAND AT THE BORDERS HE SAID AN OBSERVER WOULD SEE HUNDREDS AND HUNDREDS OF SEMITRAILERS ENTERING AND LEAVING IRAQ WITH LITTLE OR NO INSPECTION NO ONE REALLY KNOWS WHAT'S IN THOSE TRUCKS HE ADDED APART FROM BILLIONS OF DOLLARS THAT MR HUSSEIN STORED ABROAD SHORTLY BEFORE OR JUST AFTER THE WAR MR KROLL SAID HE SUSPECTED IRAQ WAS GETTING FINANCIAL AID FROM OTHER OIL STATES SUCH AS LIBYA THOUGH HE SAID HE COULDN'T PROVE THE CONNECTION THE INVESTIGATOR SAID HE BELIEVES OTHER STATES ARE SELLING OIL ON IRAQ'S BEHALF AND PAYING SOME OF ITS PROCUREMENT BILLS IN RETURN FOR A PROMISE OF DEEPLY DISCOUNTED OIL FROM IRAQ WHEN THE TRADE SANCTIONS AGAINST IT ARE LIFTED BOTH WITNESSES SAID THEY WERE CONCERNED ABOUT A REBIRTH OF IRAQ'S MILITARY PROCUREMENT NETWORK MR GALLUCCI SAID THE NETWORK COULD BE QUICKLY REACTIVATED BECAUSE IRAQ REFUSES TO PROVIDE UNITED NATIONS INSPECTORS WITH NAMES OF THE COMPANIES AND PEOPLE INVOLVED MR KROLL SAID HE BELIEVES THE NETWORK IS OPERATED THROUGH IRAQ'S COMMERCIAL ATTACHE IN AMMAN WHERE SAFA AL HABOBI WHO BUILT IRAQ'S HIGHTECH ARSENAL BEFORE THE WAR IS OFTEN SEEN MR AL HABOBI IS UNDER INDICTMENT IN THE US FOR HIS ALLEGED ROLE IN THE FRAUD OF BANCA NAZIONALE DEL LAVORO AN ITALIAN BANK MR GALLUCCI SAID HE EXPECTS IRAQ TO CONTINUE TO HARASS UN INSPECTORS AND TO DENY ACCESS TO SUSPECTED MILITARY SITES CURRENTLY HE SAID IRAQ HAS REFUSED TO ALLOW UN INSPECTORS TO SET UP CAMERAS AT A FACILITY THAT TESTS ROCKET ENGINES THE CAMERAS WOULD BE USED TO MONITOR LONGTERM ACTIVITY AT THE SITE IRAQ IS ALSO REFUSING UN ORDERS TO DESTROY SOME CHEMICAL WEAPONS SUPPLIES AND EQUIPMENT HE SAID YESTERDAY AT ABOUT THE SAME TIME AS THE COMMITTEE HEARING A US F4G AIRCRAFT ATTACKED AN IRAQI ANTIAIRCRAFT ARTILLERY SITE ACCORDING TO THE PENTAGON RADAR FROM THE SITE HAD TARGETED TWO US AIRCRAFT PATROLLING THE NOFLY ZONE OVER SOUTHERN IRAQ IT WAS THE FIRST SUCH INCIDENT SINCE APRIL PRESIDENT CLINTON LATER PLAYED DOWN THE INCIDENT I WOULDN'T READ TOO MUCH INTO IT HE SAID EXPLAINING IT WAS STANDARD DEFENSE PROCEDURE FOR US PILOTS SINCE THE ATTACK ON IRAQ'S INTELLIGENCE HEADQUARTERS IN BAGHDAD LAST WEEKEND MR CLINTON HAS SOUGHT TO PUT THE INCIDENT BEHIND HIM AND REFOCUS HIS ATTENTION ON DOMESTIC ISSUES 9306300036 930630 THE END OF JAPAN INC BY PETER TASKER TOKYO THE REVISIONIST THINKERS WHO DOMINATE DISCUSSION OF THE JAPAN PROBLEM IN THE US AND EUROPE ARE IN AN AWKWARD POSITION THE JAPAN INC THEY HAVE BUILT UP INTO THE INDUSTRIAL EQUIVALENT OF THE EVIL EMPIRE IS CRUMBLING BEFORE THEIR VERY EYES THE FIRST STAGE IN THE PROCESS WAS THE IMPLOSION OF JAPANESE REAL ESTATE AND STOCK VALUES BEGINNING IN 1990 NEXT CAME THE DEFLATION OF THE REAL ECONOMY WITH INDUSTRIAL OUTPUT FALLING 12 FROM ITS PEAK AND CORPORATE PROFITS BLOWING AWAY LIKE CHERRY BLOSSOMS THE THIRD AND MOST SPECTACULAR STAGE IS NOW UNDER WAY THE DISINTEGRATION OF THE LIBERAL DEMOCRATIC PARTY WHICH HAS GOVERNED JAPAN SINCE 1955 THE REVISIONIST VIEW OF JAPAN RESTS ON THE PREMISE THAT NORMAL POLITICAL AND ECONOMIC RULES DO NOT APPLY BECAUSE THE JAPANESE ARE WELL JAPANESE THEY ENGAGE IN DUMPING EXCLUDE IMPORTS FROM THEIR HOME MARKETS AND ENJOY A FREE RIDE ON DEFENSE THESE AND OTHER NEFARIOUS PRACTICES ARE POSSIBLE BECAUSE THEIR UNIQUE CULTURE MAKES THEM BEHAVE THAT WAY TO THIS WAY OF THINKING THERE IS NO POINT IN NEGOTIATING BILATERAL ACCORDS ON THE BASIS THAT JAPAN IS A NORMAL FREE MARKET ECONOMY BECAUSE IT IS NOT ON THE CONTRARY IT IS A COMMAND ECONOMY RUN FOR THE BENEFIT OF CABALS OF INDUSTRIALISTS AND HEADED BY FARSIGHTED BUT RUTHLESS BUREAUCRATS FOREIGNERS ARE NEVER GOING TO GET AN EVEN BREAK THE ONLY SOLUTION CONCLUDES CHALMERS JOHNSON GODFATHER OF THE REVISIONISTS IS A POLICY OF CONTAINMENT TO FORCE BACK JAPANESE ECONOMIC AGGRESSION REVISIONISTS WANT TO HAVE THEIR CAKE AND EAT IT TOO WHILE ATTACKING THE JAPANESE FOR UNFAIR PRACTICES THEY ALSO MAINTAIN THAT WESTERN COUNTRIES SHOULD COPY FEATURES OF THE JAPANESE SYSTEM THAT ARE ALLEGEDLY RESPONSIBLE FOR ITS OVERALL SUCCESS SUCH AS ITS NATIONAL INDUSTRIAL POLICY AND IN THE PRIVATE SECTOR SUBORDINATING SHAREHOLDERS' INTERESTS TO THOSE OF EMPLOYEES AND OTHER STAKEHOLDERS AMONG THE MOST CONFUSED EXPONENTS OF REVISIONISM ARE THE FRENCH FORMER PRIME MINISTER EDITH CRESSON REFERRED TO JAPANESE AS ANTS WHILE PLANNING A SUPERMINISTRY BASED ON THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY AND A VAST INDUSTRIAL CONGLOMERATE SUPPOSEDLY MODELED ON TOSHIBA THE CLINTON ADMINISTRATION SHOWS THE SAME AMBIVALENCE ALBEIT IN A MILDER FORM ON THE ONE HAND IT IS AIMING A HARDLINE RESULTSORIENTED TRADE POLICY AT JAPAN SINGLING IT OUT FROM OTHER AMERICAN TRADING PARTNERS ON THE OTHER HAND PRESIDENT CLINTON'S FRIENDS ARE KEEN TO CHANNEL TAXPAYERS' MONEY TO SILICON VALLEY AND ORGANIZE COOPERATIVE CONSORTIA OF COMPANIES A LA MITI BEING SIMULTANEOUSLY DEMONIZED AND SUBJECTED TO THE SINCEREST FORM OF FLATTERY IS PROBABLY THE PRICE OF SUCCESS IN A WORLD WHERE POLITICIANS ARE SHORT OF ANSWERS TO SERIOUS STRUCTURAL PROBLEMS IN ACADEMIC TERMS REVISIONIST ANALYSIS HAS SHED SOME USEFUL LIGHT ON THE JAPANESE LEGAL PROCESS THE DISTRIBUTION SYSTEM AND OTHER PREVIOUSLY MURKY AREAS THOUGH IT IS DUBIOUS WHETHER THIS ALL ADDS UP TO A SYSTEM THAT IS FUNDAMENTALLY DIFFERENT FROM ALL OTHERS ON THE PLANET THE ULTIMATE TEST OF A THEORY HOWEVER IS ITS POWER TO PREDICT EVENTS AND IT IS HERE THAT THE MOST SERIOUS OBJECTIONS TO THE REVISIONISTS CAN BE MADE LIKE KREMLINOLOGISTS IN THE LATE 1980S THE REVISIONISTS FAILED TO GRASP THE MAGNITUDE OF THE CHANGES TAKING PLACE IN JAPAN BEHIND THE FACADE OF MONOLITHIC POWER PREDICTIONS THAT THE LDP WAS IN IMMINENT DANGER OF COLLAPSE WERE DISMISSED AS NAIVE OR HOPELESSLY UNREALISTIC IN FACT THE REAL MYSTERY ABOUT JAPAN'S RULING PARTY IS NOT WHY IT IS DISINTEGRATING NOW BUT HOW IT MANAGED TO LAST SO LONG THE LDP LIKE THE ITALIAN CHRISTIAN DEMOCRATS IS A CLASSIC COLD WAR PHENOMENON ITS MANY FAILINGS INCLUDING UNATTRACTIVE LEADERSHIP CORRUPTION AND LINKS WITH ORGANIZED CRIME WERE TOLERATED BY THE JAPANESE PUBLIC FOR THREE MAIN REASONS FIRST THE LDP STOOD FOR CAPITALISM AND FOR THE US SECURITY ALLIANCE THAT PROTECTED JAPAN FROM THE TWO NUCLEARARMED COMMUNIST SUPERPOWERS NEARBY SECOND THE MANAGEMENT OF MACROECONOMIC POLICY WAS HIGHLY COMPETENT CONSISTENTLY DELIVERING LOW INFLATION LOW UNEMPLOYMENT AND STRONG GROWTH THIRD THE LDP WAS MONOLITHIC WITH NO VIABLE ALTERNATIVES THE OPPOSITION PARTIES HAD WORSE LEADERSHIP AND WERE LESS CORRUPT ONLY THROUGH LACK OF OPPORTUNITY THESE THREE PILLARS ALL BEGAN TO CRUMBLE IN THE 1980S PERHAPS THE MOST SURPRISING LAPSE WAS THE DETERIORATION IN THE QUALITY OF ECONOMICPOLICY MANAGEMENT BEGINNING WITH THE INFLATION OF THE BUBBLE ECONOMY IN 1986 SINCE THEN ONE MISTAKE HAS LED TO ANOTHER CULMINATING IN THE LATEST POLICYINDUCED BUBBLE THE VALUE OF THE YEN IN THE CURRENCY MARKETS COMPARED WITH ITS PURCHASING POWER IN THE STORES THE FINANCIAL SYSTEM IS GRAVELY IMPAIRED BY BAD DEBTS REAL ESTATE IS IN A SLUMP THAT WILL LAST UNTIL THE END OF THE CENTURY AND COSTSQUEEZING DOWNSIZING AND RESTRUCTURING HAVE BECOME THE NEW BUZZWORDS OF CORPORATE JAPAN WHAT ABOUT THE THIRD FACTOR IS THERE NOW A REAL ALTERNATIVE TO THE LDP THE ANSWER TO THAT WILL BECOME APPARENT AFTER THE JULY 18 GENERAL ELECTION THE NEW PARTIES BREAKAWAYS FROM THE OLD LDP AND ENTREPRENEURIAL STARTUPS ARE GETTING A LOT OF ATTENTION MORE IMPORTANT HOWEVER MAY BE THE DIVISIONS THAT ARE YET TO COME AS THE EXISTING OPPOSITION PARTIES ARE SUBJECTED TO THE SAME CONFLICT ROCKING THE LDP THE OLD GUARD VS AMBITIOUS YOUNG PROGRESSIVES THE ELECTION COULD WELL BE JUST THE START OF A LONG AND TURBULENT PROCESS OF POLITICAL REALIGNMENT THERE IS A HISTORICAL PRECEDENT THE TOKUGAWA SHOGUNATE WHICH RULED JAPAN FOR 250 YEARS UNTIL THE MEIJI RESTORATION IN 1867 FINALLY COLLAPSED UNDER THE RULE OF ITS 15TH SHOGUN YOSHINOBU TOKUGAWA LIKE YOSHINOBU PRIME MINISTER KIICHI MIYAZAWA IS A MILDMANNERED SCHOLARLY MAN WHO HAS SPENT HIS ENTIRE CAREER PREPARING FOR THE TASK OF RULING JAPAN ALSO LIKE YOSHINOBU MR MIYAZAWA ASCENDED TO THE SUPREME POSITION AFTER IT WAS TOO LATE THE PROCESSES OF DECLINE HAD BEEN ALLOWED TO RUN ON TOO LONG AGAIN PARALLELING HIS UNHAPPY PREDECESSOR MR MIYAZAWA IS FUNDAMENTALLY A DECENT MAN A QUALITY THAT COMMANDS RESPECT IN TIMES OF STABILITY BUT LOOKS LIKE WEAKNESS IN TIMES OF CRISIS YOSHINOBU'S LORDS PROVED FICKLE WHEN FACED WITH THE RUTHLESS SCHEMING OF THE MEIJI REBELS TODAY MR MIYAZAWA HAS ALLOWED HIMSELF TO BE OUTMANEUVERED BY ICHIRO OZAWA AND TSUTOMU HATA ALTHOUGH WELLLIKED ON THE INTERNATIONAL CONFERENCE CIRCUIT MR MIYAZAWA COMMANDS LITTLE PERSONAL LOYALTY AMONG HIS LORDS BUT IN ONE RESPECT CURRENT DEVELOPMENTS IN JAPAN DIFFER RADICALLY FROM THE DISINTEGRATION OF THE TOKUGAWA SHOGUNATE OR THE SOVIET UNION FOR THAT MATTER ALTHOUGH JAPAN IS SUFFERING A LONG AND DEBILITATING RECESSION THE FACTORS THAT DROVE ITS INDUSTRIAL SUCCESS THE DEDICATION SKILL AND EDUCATIONAL ATTAINMENTS OF ITS PEOPLE ARE STILL VERY MUCH INTACT THE DISINTEGRATION OF JAPAN INC WILL OFFER AN OPPORTUNITY FOR THESE QUALITIES TO BE LIBERATED AND DEVELOPED IN THE END THE RESULT MAY WELL BE AN EVEN MORE COMPETITIVE JAPAN REVISIONISTINFLUENCED POLITICIANS IN WASHINGTON AND BRUSSELS MAY NOT FIND THAT AN ALTOGETHER WELCOME PROSPECT MR TASKER IS A TOKYOBASED INVESTMENT STRATEGIST AND AUTHOR OF THE JAPANESE A MAJOR EXPLORATION OF MODERN JAPAN DUTTON 1988 AND RESTRUCTURING JAPAN KODANSHA 1993 9306300033 930630 REVIEW & OUTLOOK EDITORIAL AGAINST POLITICAL APARTHEID' IN RULING THAT NORTH CAROLINA'S HERDING OF BLACK VOTERS INTO CONTORTED DISTRICTS MAY VIOLATE THE CONSTITUTION THE SUPREME COURT HAS SENT AN IMPORTANT AND NEEDED MESSAGE TREATING PEOPLE AS RACIAL PAWNS IN A POLITICAL CHESS GAME GOES AGAINST OUR NATION'S INTEREST THAT INTEREST IS A SOCIETY THAT IS COLORBLIND BEFORE THE LAW NORTH CAROLINA'S REDISTRICTING MAP IS ON VIEW IN THE RULE OF LAW COLUMN ON THE OPPOSITE PAGE SEE RELATED ARTICLE RULE OF LAW COURT DEALS A BLOW TO RACIAL GERRYMANDERING WSJ JUNE 30 1992 THE COURT'S DECISION CONCLUDED THAT SUCH BIZARRE DISTRICTS BORE AN UNCOMFORTABLE RESEMBLANCE TO POLITICAL APARTHEID AND REINFORCED THE PERCEPTION THAT MEMBERS OF A MINORITY GROUP THINK ALIKE SHARE THE SAME POLITICAL INTERESTS AND WILL PREFER THE SAME CANDIDATES AT THE POLLS IT REFUSED TO SANCTION SUCH IMPERMISSIBLE RACIAL STEREOTYPES THERE IS A MESSAGE HERE THAT IS MORE BROADLY APPLICABLE CONSIDER OUR UNIVERSITIES AT MANY OF THEM A FORM OF POLITICAL APARTHEID IS PUTTING DOWN ROOTS MINORITY STUDENTS ARE OFTEN GERRYMANDERED INTO THEIR OWN DORMS AND CULTURAL CENTERS WHERE THEY ARE FED THEORIES OF RACIAL DIVISIVENESS MINORITY PROFESSORS WHO DON'T TOE THIS POLITICALLY CORRECT LINE GET OSTRACIZED AS IS HAPPENING TO BLACK SCHOLARS WHO EXPRESSED DISAGREEMENT WITH LANI GUINIER'S VIEWS OF RACE RELATIONS THE SUPREME COURT'S RULING IS ALREADY UNDER ATTACK FROM THE CIVIL RIGHTS ESTABLISHMENT MARK ROSENBAUM OF THE ACLU INCORRECTLY CLAIMS THE COURT IS OFFENDED BY GERRYMANDERING ONLY WHEN CONFRONTED BY A DISTRICT PACKED WITH MINORITIES THERE'S MORE TO IT THAN THAT IN ITS DECISION THE COURT NOTED THAT THE JUSTICE DEPARTMENT HAD SUGGESTED A WAY NORTH CAROLINA COULD HAVE CREATED TWO REASONABLY COMPACT MINORITY DISTRICTS THAT WOULD HAVE SATISFIED ANY INTERPRETATION OF THE VOTING RIGHTS ACT INSTEAD NORTH CAROLINA'S DEMOCRATIC LEGISLATURE CREATED A MONSTROSITY WHY THE REASON IS THAT DRAWING RATIONAL MINORITYBASED DISTRICTS WOULD HAVE COST REP CHARLES ROSE AND OTHER DEMOCRATS THEIR SAFE SEATS REP ROSE CHAIRMAN OF THE HOUSE COMMITTEE THAT OVERSEES CONGRESSIONAL PERKS IS A POWERFUL FIGURE BACK HOME TO SAVE HIM AND HIS FRIENDS DEMOCRATIC BOSSES ALLOWED ONE OF MR ROSE'S STAFFERS TO DRAW THE INKBLOT DISTRICTS THAT SO OFFENDED THE COURT IN SHORT RACIAL GERRYMANDERING SELDOM INVOLVES ONLY ISSUES OF CIVIL RIGHTS IT INEVITABLY DEGENERATES INTO A PARTISAN POLITICAL STRUGGLE UNTIL LAST YEAR THE REPUBLICAN NATIONAL COMMITTEE CYNICALLY SUPPORTED RACIAL GERRYMANDERING AS A WAY TO DISADVANTAGE WHITE DEMOCRATS THE RHETORIC COMING OUT OF THE CIVIL RIGHTS LITIGATION MILLS WOULD HAVE IT THAT THIS IS SIMPLY AN ISSUE OF BLACK VS WHITE NOT SO INDEED GEORGIA REP JOHN LEWIS A CIVIL RIGHTS VETERAN SAYS THE GOAL OF A TRULY INTERRACIAL DEMOCRACY HASN'T BEEN HELPED BY RACEBASED REDISTRICTING INSTEAD IT IS ALMOST CREATING BLACK TOWNSHIPS SIMILAR TO SOUTH AFRICA'S THE ARGUMENT AGAINST RACIAL GERRYMANDERING IS A CLEAR ONE AMERICA SHOULD BE MOVING AWAY FROM MECHANISMS THAT ENCOURAGE RACIAL OR ETHNIC THINKING THAT IS THE PATH TO BOSNIA AS JUSTICE SANDRA DAY O'CONNOR WROTE FOR THE COURT RACIAL GERRYMANDERING EVEN FOR REMEDIAL PURPOSES MAY BALKANIZE US FURTHER FROM THE GOAL OF A POLITICAL SYSTEM IN WHICH RACE NO LONGER MATTERS 9306300032 930630 DIVIDEND NEWS PAGES INC PAGES INC DUBLIN OHIO SAID ITS BOARD APPROVED A 5FOR4 STOCK SPLIT SUBJECT TO SHAREHOLDER APPROVAL HOLDERS WILL VOTE ON THE MATTER AT THE AUG 31 ANNUAL MEETING PAYABLE AND RECORD DATES WOULD BE SET AT THAT TIME PAGES SAID THE SPLIT WAS A MOVE TO IMPROVE THE MARKETABILITY OF ITS COMMON STOCK PAGES SUPPLIES MOTIVATIONAL AND INCENTIVE AWARDS PROGRAMS TO COMPANIES 9306300031 930630 FINANCING BUSINESS UNITED COMPANIES FINANCIAL CORP UNITED COMPANIES FINANCIAL CORP BATON ROUGE LA SOLD 800000 SHARES OF CONVERTIBLE PREFERRED STOCK FOR 20 MILLION TO A GROUP OF 13 MAJOR OVERSEAS INSTITUTIONAL INVESTORS PRIMARILY IN BRITAIN THE SHARES WERE SOLD FOR 25 EACH WITH A 65 ANNUAL DIVIDEND EACH PREFERRED SHARE IS CONVERTIBLE INTO 1129 SHARES OF COMMON AT A PRICE OF 2050 A SHARE THE FINANCE AND INSURANCE COMPANY SAID IT WILL USE THE PROCEEDS TO STRENGTHEN ITS CAPITAL POSITION ROBINSONHUMPHREY CO WAS THE PLACEMENT AGENT 9306300030 930630 MARKETING BRIEF NOTED TIME WARNER INC ACQUIRED A SECOND INSTORE MARKETING COMPANY SMARTDEMO A UNIT OF MARKET GROWTH RESEARCH GROUP INC WILTON CONN TERMS WEREN'T DISCLOSED A NEW COMPANY TIME INC INSTORE MARKETING WILL OPERATE SMARTDEMO AND MEDIAONE ITS PREVIOUS INSTORE ACQUISITION SMARTDEMO PROVIDES DEMONSTRATIONS COUPONS AND OTHER PROMOTIONAL SERVICES 9306300029 930630 EMERALD HOMES LP TO PAY 10 MILLION TO SETTLE RTC SUIT TUCSON ARIZ EMERALD HOMES LP AGREED TO PAY 10 MILLION TO SETTLE FEDERAL LITIGATION FILED BY THE RESOLUTION TRUST CORP ALLEGING RACKETEERING AND FRAUD IN CONNECTION WITH CHARLES KEATING JR'S AMERICAN CONTINENTAL CORP AND ITS LINCOLN SAVINGS UNIT US DISTRICT COURT JUDGE RICHARD BILBY APPROVED THE SETTLEMENT WHICH WILL BE PAID IN QUARTERLY INSTALLMENTS OVER THE NEXT THREE YEARS THE RTC ALLEGED IN A LAWSUIT LAST YEAR THAT EMERALD A PHOENIX HOMEBUILDER AND VERIT INDUSTRIES WHICH OWNED A 24 STAKE IN EMERALD ENTERED INTO PHONY DEALS TO DODGE PAYMENTS ON A 25 MILLION LOAN EXTENDED BY LINCOLN SAVINGS TO EMERALD IN 1987 EMERALD EXECUTIVES DIDN'T RETURN A PHONE CALL 9306300028 930630 CREDIT MARKETS NEW UNIT TRUST GIVES SMALL INVESTORS A PLAY ON VOLATILE DEVELOPINGNATION BRADY BONDS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THANKS TO A NEW TYPE OF INVESTMENT MOM AND POP WON'T HAVE TO TRAVEL TO LAS VEGAS TO GAMBLE WITH THE BIG PLAYERS ANYMORE THAT'S BECAUSE FOR 3250 THEY CAN INVEST IN THE FIRST UNIT INVESTMENT TRUST TO HOLD ONLY BRADY BONDS ONE OF THE MOST POPULAR TYPES OF BONDS IN THE VOLATILE MARKET FOR DEVELOPINGNATION DEBT INVESTORS WOULD NEED 250000 TO BUY JUST ONE OF THESE BONDS SEPARATELY WHICH ARE ISSUED BY DEVELOPING NATIONS UNDER GUIDELINES FORMULATED BY FORMER TREASURY SECRETARY NICHOLAS BRADY IT'S DEFINITELY NOT FOR THE CONSERVATIVE INVESTOR SAID JACK TIERNEY WHO IS IN CHARGE OF UNIT TRUSTS AT VAN KAMPEN MERRITT WHICH LAUNCHED THE TRUST EARLIER THIS MONTH BUT WE THINK THIS IS ONE OF THE BIG AREAS PEOPLE ARE GOING TO LOOK AT MORE OFTEN IN THE DEBT MARKETS HE SAID WITH INTEREST RATES DROPPING EVER LOWER IN THE US MANY INVESTORS ARE WILLING TO SHOULDER GREATER RISKS IN SEARCH OF HIGHER RETURNS VAN KAMPEN MERRITT ESTIMATES THE CURRENT TOTAL RETURN FOR EACH UNIT OF THE NEW TRUST TO BE 809 MUCH HIGHER THAN RETURNS FOR MANY US BOND INVESTMENTS YESTERDAY FOR EXAMPLE THE BENCHMARK 30YEAR US TREASURY BOND YIELDED JUST 667 UNCHANGED FROM MONDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS YIELD DROPPED LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH A 1000 FACE VALUE TO 105 25/32 BUT WHILE US TREASURYS ARE CONSIDERED TO HAVE AN IMPLIED RATING OF TRIPLEA THE UNDERLYING DEBT OF THE VARIOUS NATIONS BACKING THE BRADY BONDS IS UNRATED OR RATED BELOW INVESTMENT GRADE THE SCRAMBLE FOR HIGHER YIELDS WAS EVIDENT YESTERDAY IN THE US CORPORATE MARKET AS WELL WHERE INVESTORS SNAPPED UP 600 MILLION OF A TWOPART OFFERING OF BONDS FROM USX CORP EVEN THOUGH THE STEEL AND ENERGY CONCERN'S RATINGS ARE UNDER REVIEW WITH A NEGATIVE OUTLOOK BY STANDARD & POOR'S CORP ALSO AMONG THE RUSH OF ALMOST 2 BILLION OF NEW ISSUES WAS A 200 MILLION ISSUE OF JUNKRATED BONDS FROM MEXICO'S BANCO NACIONAL DE COMERCIO EXTERIOR A UNIT INVESTMENT TRUST IS AN INVESTMENT VEHICLE THAT PURCHASES A FIXED PORTFOLIO OF SECURITIES INVESTORS CAN BUY UNITS IN THE TRUST WHICH ENTITLE THEM TO A FIXED PORTION OF THE PRINCIPAL AND INTEREST PAYMENTS ON THE SECURITIES IN THE TRUST THE SECURITIES ARE HELD UNTIL MATURITY TRUSTS ARE USUALLY SOLD IN SERIES EACH ONE HOLDING THE SAME PORTFOLIO OF SECURITIES SO FAR VAN KAMPEN MERRITT HAS SOLD TWO SERIES OF 6 MILLION EACH IN ITS EMERGING MARKETS INCOME TRUST AND HAS BEGUN TO SELL ANOTHER 6 MILLION SERIES ACCORDING TO MR TIERNEY BRADY BONDS HAVE BECOME POPULAR HOLDINGS FOR A NUMBER OF MUTUAL FUNDS SPECIALIZING IN THE DEBT OF DEVELOPING NATIONS THIS IS BECAUSE THEIR PRINCIPAL AND AS MUCH AS TWO YEARS OF INTEREST PAYMENTS ARE USUALLY COLLATERALIZED BY US TREASURY ZEROCOUPON BONDS PURCHASED BY THE DEBTOR NATION ZEROCOUPON BONDS ARE SOLD AT A DEEP DISCOUNT AND PAY NO INTEREST BUT THE BRADY BOND MARKET CAN BE AN EXTREMELY VOLATILE ONE THE BONDS ARE USUALLY ISSUED AS PART OF A PROGRAM OF DEBT RESTRUCTURING AND A MAJOR ECONOMIC OVERHAUL AS A RESULT THEIR VALUE TENDS TO RISE AND FALL PRECIPITOUSLY IN TANDEM WITH THE OFTEN TEMPESTUOUS POLITICAL AND ECONOMIC CLIMATES OF DEVELOPING NATIONS IN FACT ACCORDING TO MR TIERNEY ONE OF THE CONCERNS OF VAN KAMPEN MERRITT WAS HOW TO TIME THEIR PURCHASE OF THE BRADY BONDS NEEDED FOR THE UNIT INVESTMENT TRUSTS WITH THEIR MARKETING EFFORTS WE LEARNED THAT BRADY BONDS ARE DIFFICULT TO HEDGE AGAINST CHANGES IN THE MARKET HE SAID IN 1991 FOR EXAMPLE THE SALOMON BROTHERS BRADY BOND INDEX HAD A TOTAL RETURN OF 40 BUT IN 1992 THAT DROPPED TO LESS THAN 5 THANKS TO POLITICAL TURMOIL IN VENEZUELA ONE OF THE LARGEST BRADY BOND ISSUERS SO FAR THIS YEAR THE SALOMON INDEX HAS A RETURN OF 1974 PARTLY DUE TO AN IMPROVING SITUATION IN VENEZUELA RETURNS IN THE VAN KAMPEN TRUST WILL VARY FROM THE SALOMON INDEX BECAUSE THE TRUST DOES NOT HAVE THE EXACT SAME HOLDINGS OF BRADY BONDS AS THE INDEX EACH OF THE TRUST'S SERIES WILL HOLD A 6 MILLION FACE AMOUNT OF BRADY BONDS FROM THE PHILIPPINES MEXICO VENEZUELA NIGERIA URUGUAY AND ARGENTINA BECAUSE THE BRADY BONDS THEMSELVES ARE SOLD AT A DISCOUNT INVESTORS WILL RECEIVE BOTH INTEREST PAYMENTS OVER THE LIFE OF THE BONDS WHICH AVERAGE 27 YEARS AND PRICE APPRECIATION FOR EACH 650 AN INVESTOR PLUNKS DOWN HE WILL RECEIVE 1000 WHEN THE UNITS MATURE WHICH HAPPENS AFTER ALL OF THE BONDS IN THE TRUST REACH MATURITY IN ADDITION THE INVESTOR ALSO GETS PERIODIC INTEREST PAYMENTS IF NONE OF THE BONDS DEFAULT AND ALL INTEREST PAYMENTS ARE MADE INVESTORS SHOULD REALIZE A TOTAL RETURN OF 949 OVER THE LIFE OF THE TRUST TREASURY PRICES ENDED NARROWLY MIXED YESTERDAY WITH MOST MATURITIES POSTING SLIGHT GAINS WHILE THE 30YEAR BOND DROPPED SLIGHTLY THE 10YEAR NOTE ROSE LESS THAN 1/8 POINT TO 103 16/32 TO YIELD 576 DOWN FROM 577 ON MONDAY MANY INVESTORS ARE CAUTIOUS AHEAD OF THE JUNE EMPLOYMENT REPORT WHICH IS SLATED TO BE RELEASED FRIDAY THE REPORT WILL OFFER THE FIRST OFFICIAL LOOK AT THE STATE OF THE NATION'S ECONOMY IN JUNE WHILE TRADERS AND INVESTORS MAY HAVE BEEN UNWILLING TO UNDERTAKE TOO MANY NEW POSITIONS YESTERDAY THE MARKET DID ENJOY SOME BUYING INTEREST EARLY IN THE DAY AFTER THE RELEASE OF TWO ECONOMIC REPORTS THE COMMERCE DEPARTMENT REPORTED IN THE MORNING THAT SALES OF NEW SINGLEFAMILY HOMES IN MAY FELL 21 FROM APRIL'S PACE TO A 571000 ANNUAL RATE THAT DROP WAS THE LARGEST SINCE APRIL 1980 AND IT ALL BUT ERASED THE 215 GAIN MADE IN APRIL AND THE CONFERENCE BOARD REPORTED THAT ITS CONSUMER CONFIDENCE INDEX DECLINED TO 589 IN JUNE FROM 619 IN MAY THAT'S THE LOWEST READING FOR THE INDEX SINCE OCTOBER BOND INVESTORS ARE ENCOURAGED BY SIGNS OF ECONOMIC WEAKNESS BECAUSE THAT EASES THE THREAT OF INFLATION WHICH HARMS THE RETURNS OF FIXEDINCOME INVESTMENTS FOR FRIDAY'S EMPLOYMENT REPORT EARLY EXPECTATIONS ARE THAT NONFARM PAYROLLS LIKELY GAINED ABOUT 100000 IN MAY A NUMBER WELL ABOVE OR BELOW THAT READING MAY HELP JOLT THE MARKET INTO ACTION EVEN THOUGH EMPLOYMENT REPORTS HAVEN'T BEEN BIG TRADING FACTORS OF LATE EVEN THOUGH ITS CREDIT RATING IS UNDER REVIEW BY S&P STRONG DEMAND GREETED AN ISSUE OF NOTES AND BONDS FROM USX YESTERDAY THE OFFERING WAS DOUBLED IN SIZE TO 600 MILLION IN RESPONSE TO THE DEMAND YESTERDAY'S OFFERING WAS RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBMINUS BY S&P THE LOWEST INVESTMENTGRADE RATINGS FROM BOTH AGENCIES ACTIVITY IN THE SECONDARY INVESTMENTGRADE MARKET REMAINED THIN AND PRICES ENDED MOSTLY UNCHANGED AS DEALERS CONTINUED TO UNLOAD EXCESS SUPPLY USX SOLD 250 MILLION OF NONCALLABLE 30YEAR BONDS WITH 8125 COUPONS AT A PRICE OF 98724 TO YIELD 824 THE BONDS WERE PRICED AT A SPREAD OF 157 PERCENTAGE POINTS ABOVE THE TREASURY'S 30YEAR BOND USX ALSO SOLD 350 MILLION OF NONCALLABLE FIVEYEAR NOTES WITH 6375 COUPONS AT A PRICE OF 99934 TO YIELD 639 THE NOTES WERE PRICED AT A SPREAD OF 135 PERCENTAGE POINTS ABOVE THE TREASURY'S FIVEYEAR NOTE THE ISSUES WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP PRICES OF MUNICIPAL BONDS FINISHED 1/8 TO 5/8 POINT HIGHER BUT TRADERS SAID MARKET PARTICIPANTS WERE BEGINNING TO GROW CAUTIOUS AS THE RALLY AGED AND THE LONG HOLIDAY WEEKEND APPROACHED IN THE PRIMARY MARKET PENNSYLVANIA'S 7628 MILLION OF CERTIFICATES OF PARTICIPATION WERE REOFFERED BY A PRUDENTIAL SECURITIES INC GROUP TO YIELD FROM 35 IN 1995 TO 5625 IN 2015 THE PROCEEDS OF THE ISSUE ARE TO BE USED FOR CAPITAL OUTLAYS AT FLORIDA UNIVERSITIES COMMUNITY COLLEGES AND PUBLIC SCHOOLS AMONG ACTIVELY TRADED MUNIS THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 570 REVENUE REFUNDING BONDS OF 2017 ENDED 1/8 HIGHER AT 99 1/8 TO YIELD 577 THE DENVER AIRPORT 675 REVENUE BONDS OF 2022 ENDED 5/8 HIGHER AT 102 1/8 TO YIELD 659 MOST MORTGAGE SECURITIES PRICES LOST GROUND AS LOW INTEREST RATES KEPT PREPAYMENT WORRIES ALIVE SIGNS OF STRAIN HAVE BEEN EVIDENT FOR SEVERAL DAYS IN THE SECTORS MOST SENSITIVE TO EARLY PREPAYMENTS SUCH AS HIGHCOUPON AND INTERESTONLY STRIPPED MORTGAGE SECURITIES IOS IO HOLDERS WHO RECEIVE ONLY INTEREST LOSE THEIR INVESTMENT WHEN THE SECURITIES ARE PREPAID AND THE INCOME STREAM EVAPORATES PREPAYMENTS ARE TYPICALLY SPURRED BY LOW MORTGAGE RATES WHICH ENTICE HOMEOWNERS TO REFINANCE AND RETIRE THE OUTSTANDING MORTGAGE LOANS THAT BACK IOS AND OTHER MORTGAGE SECURITIES IN THIS ENVIRONMENT 65 SECURITIES CONTINUE TO BE ONE OF THE MOST HIGHLY SOUGHT COMMODITIES IN THE MORTGAGE MARKET THAT'S LARGELY BECAUSE THEY ARE THE ONLY ACTIVELY TRADED 30YEAR COUPONS THAT TRADE BELOW 100 ALBEIT JUST MARGINALLY BELOW THAT PAR PRICE MORTGAGE SECURITIES ARE PREPAID AT PAR OFTEN WELL BELOW THE PRICE THAT INVESTORS PAID TO PURCHASE MOST ISSUES AMONG 65 ISSUES GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FOR JULY DELIVERY ENDED 5/32 HIGHER AT 99 30/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES WERE OFF 2/32 AT 99 19/32 AND 99 12/32 RESPECTIVELY IN THE 7 SECTOR GINNIE MAES FOR JULY DELIVERY FINISHED 3/32 LOWER AT 102 FREDDIE MAC GOLDS FINISHED 1/8 LOWER AT 101 27/32 AND FANNIE MAES ENDED 1/8 LOWER AT 101 22/32 IN THE PRIMARY MARKET THREE FREDDIE MAC REAL ESTATE MORTGAGE INVESTMENT CONDUIT OFFERINGS WERE INCREASED FOR A TOTAL OF 18 BILLION OF NEW SECURITIES 9306300027 930630 INTERNATIONAL GERMAN BID TO BLOCK BANANA IMPORT LIMITS IS REJECTED BY COURT LUXEMBOURG IN A VICTORY FOR THE OVERSEAS TERRITORIES AND FORMER COLONIES OF EUROPEAN COMMUNITY COUNTRIES THE EC'S HIGHEST COURT REJECTED A GERMAN BID TO BLOCK STRINGENT NEW QUOTAS ON CHEAPER BANANA IMPORTS FROM LATIN AMERICA THE EC COURT OF JUSTICE SAID A NEW COMMUNITYWIDE BANANA IMPORT REGIME CAN TAKE EFFECT AS SCHEDULED TOMORROW IT REPLACES COUNTRYBYCOUNTRY RULES THAT EXISTED BEFORE THE COMMUNITY'S SINGLE MARKET TOOK EFFECT GERMANY CONSUMES ABOUT HALF THE BANANAS SOLD IN THE EC OR A HEFTY 14 MILLION TONS A YEAR IT CONTENDS THE NEW SYSTEM IS PROTECTIONIST AND WOULD CAUSE GRAVE LOSSES TO GERMAN IMPORTERS GERMANY HAD SOUGHT AN INTERIM RULING FROM THE JUSTICES PENDING A FULL DECISION THAT COULD TAKE TWO YEARS A SHOWING OF IRREPARABLE HARM IS NECESSARY TO OBTAIN AN EMERGENCY ORDER BUT THE COURT SAID BONN HAD FAILED TO MAKE SUCH A CASE THE EC'S GREAT BANANA WAR PITS GROWERS IN PLACES SUCH AS THE FRENCH ISLANDS OF MARTINIQUE AND GUADELOUPE AGAINST DOLLAR ZONE PRODUCERS IN COSTA RICA ECUADOR GUATEMALA AND ELSEWHERE IN LATIN AMERICA WHERE BANANAS ARE PRODUCED CHEAPLY ON LARGE PLANTATIONS THE NEW IMPORT REGIME SETS A QUOTA FOR LATIN AMERICAN BANANAS OF TWO MILLION TONS A YEAR SUBJECT TO A 20 TARIFF AFTER TWO MILLION TONS THE TARIFF SKYROCKETS TO 170 WHICH IN EFFECT SETS A CEILING FOR THE DOLLAR ZONE BANANAS AT THE REQUEST OF THE LATIN AMERICAN PRODUCERS THE GENERAL AGREEMENT ON TARIFFS AND TRADE WILL EXAMINE THE EC'S NEW IMPORT REGIME A GATT PANEL HAS ALREADY UPHELD A CHALLENGE TO THE OLD NATIONAL QUOTAS IN SEVERAL EC COUNTRIES INCLUDING FRANCE BRITAIN AND SPAIN 9306300026 930630 INTERNATIONAL MALAYSIA TO BUY RUSSIAN MIGS MCDONNELL JETS BY STEPHEN DUTHIE AND JEFF COLE STAFF REPORTERS OF THE WALL STREET JOURNAL MALAYSIA DEALT A TENTATIVE BLOW TO US INTERESTS BY SAYING IT PLANS TO ORDER 18 MIG29 JET FIGHTERS FROM RUSSIA IN ADDITION TO ORDERING EIGHT F/A18 STRIKE AIRCRAFT MADE BY MCDONNELL DOUGLAS CORP ANALYSTS VALUED THE MIG SALE AT ABOUT 775 MILLION THE PLANNED ORDER FOR MCDONNELL DOUGLAS JETS IS VALUED AT 200 MILLION TO 320 MILLION DEPENDING ON TERMS FOR SPARE PARTS TRAINING ORDNANCE AND OTHER ITEMS THE ARMS DEAL ONE OF MALAYSIA'S LARGEST EVER HAS BEEN THE SUBJECT OF INTENSE LOBBYING AND SCRUTINY OVER THE PAST YEAR AMONG RUSSIAN US AND EUROPEAN WEAPONS INTERESTS AND THE JOCKEYING MAY CONTINUE FOR MONTHS TO COME AS MALAYSIA BEGINS ITS FINAL NEGOTIATIONS WITH MOSCOW THE AGREEMENT TO ORDER THE MIGS IS LOADED WITH MAJOR CONTINGENCIES FOR EXAMPLE THE RUSSIANS MUST UPGRADE THE MIGS' ENGINES AND AVIONICS AS WELL AS EXTEND THE SERVICE LIFE OF THE AIRPLANE WESTERN ARMS MAKERS AND THEIR BACKERS HAVE CONTENDED THAT THE FIGHTING CAPABILITY AND DURABILITY OF THE MIGS ARE INFERIOR AND COSTLIER TO MAINTAIN THAN COMPARABLE US SUPERSONIC FIGHTERS BUT ANALYSTS FAMILIAR WITH THE MALAYSIAN MILITARY'S PLANS TO QUICKLY UPGRADE ITS WEAPONS SYSTEMS MAINTAINED THAT RUSSIA OFFERED LOWER PRICES FASTER DELIVERY AND GREATER PAYMENT FLEXIBILITY INCLUDING THE WILLINGNESS TO ACCEPT A COMBINATION OF CASH AND COMMODITIES SUCH AS PALM OIL SOME ANALYSTS SAID THAT PRIME MINISTER MAHATHIR MOHAMAD MADE A POLITICAL DECISION TO REDUCE MALAYSIA'S MILITARY DEPENDENCE ON US AND OTHER WESTERN ARMS SUPPLIERS FOR MCDONNELL DOUGLAS WHICH IS BASED IN ST LOUIS THE DEAL AT LEAST SALVAGES A FOOTHOLD FOR THE COMPANY IN MALAYSIA'S MILITARY WHICH MAY SEEK FURTHER ORDERS FOR THE FUTURE REACTING TO THE LARGE ORDER FOR RUSSIAN JETS A MCDONNELL DOUGLAS SPOKESMAN SAID ONLY THAT THE COMPANY CERTAINLY RESPECTS THE WISHES OF THE MALAYSIANS A FINAL CONTRACT TO BUY THE EIGHT MCDONNELL DOUGLAS F/A18S WOULD DEPEND IN PART ON THE US COMPANY'S WILLINGNESS TO TRANSFER ITS TECHNOLOGICAL KNOWHOW AND SUPPORT FACILITIES TO MALAYSIA IN ANY EVENT IF MALAYSIA COMPLETES THE RUSSIAN DEAL IT WON'T HAVE THE FUNDS TO BUY THE USMADE FIGHTERS UNTIL AFTER 1995 WHEN FRESH MILITARY ALLOCATIONS ARE MADE UNDER THE COUNTRY'S NEXT FIVEYEAR DEVELOPMENT PLAN THE F/A18S ARE TO BE DELIVERED 36 MONTHS AFTER A CONTRACT IS SIGNED 9306300025 930630 ITALY'S ELITE INMATES ARE STEWING IN PRISON WITH ORDINARY THUGS BUSINESS LEADERS AND POLITICIANS ARE HELD INELIGIBLE FOR BAIL IN HUGE KICKBACK SCANDAL BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN TO SEE THE WRECKAGE OF A HIGHFLYING ERA TAKE A WALK THROUGH SAN VITTORE PRISON IN A CRAMPED CELL ALONG SECTION SIX THE FORMER MAYOR OF ROME CLELIO DARIDA LOUNGES ON HIS COT IN WHITE SHORTS AND A POLO SHIRT READING A BOOK NEXTDOOR RENATO POLLINI THE FORMER TREASURER OF ITALY'S COMMUNIST PARTY CHATS AMIABLY THROUGH THE IRON BARS WITH A VISITING MEMBER OF PARLIAMENT UPSTAIRS GABRIELE CAGLIARI THE ERSTWHILE CHAIRMAN OF ITALY'S GIANT ENERGY CONGLOMERATE ENI PREPARES FOR LUNCH IN HIS CELL SOGGY SPAGHETTI AND SPINACH THOSE BIG GUYS ARE PRETTY SCARED WHEN THEY FIRST GET IN HERE CONFIDES WILLIAM MAMONE A FELLOW PRISONER WHO IS SERVING TIME FOR DRUG TRAFFICKING BUT THERE'S NEVER MAJOR VIOLENCE IN HERE JUST A FEW FIGHTS SOME COUNTRIES HAVE PUNISHED DISCREDITED LEADERS AT THE POLLS OTHERS HAVE RESORTED TO THE GUILLOTINE OR FIRING SQUAD BUT IN ITALY PROMINENT MEN IMPLICATED IN SCANDAL HAVE LATELY BEEN CARTED OFF IN LARGE NUMBERS TO THIS 19THCENTURY DOWNTOWN PRISON WHERE THEY AWAIT QUESTIONING ON CORRUPTION CHARGES IN 9BY12 CELLS TO REACH SECTION SIX WHERE THE CURRENT CROP OF WHITECOLLAR INMATES ARE CONCENTRATED GUARDS MUST UNLOCK A SERIES OF SEVEN REINFORCED STEEL GATES THAT SEAL OFF LONG PASSAGEWAYS DEEP INSIDE THE STARSHAPED FORTRESS ASIDE FROM ITS MAXIMUMSECURITY MAFIA WING SAN VITTORE MAKES NO DISTINCTIONS AMONG INMATES THOSE JAILED IN THE COUNTRY'S EPIC CORRUPTION SCANDAL RANGING FROM SENIOR CORPORATE EXECUTIVES TO FORMER CABINET MINISTERS OWNERS OF SOCCER TEAMS AND POLITICIANS OCCUPY CELLS OF TWO TO 16 BEDS WITH MEN SERVING TIME FOR ARMED ROBBERY ASSAULT AND DRUG DEALING I SUPPOSE IT'S THE ONLY PLACE IN THE WORLD WHERE YOU'D SEE SO MANY FAMOUS PEOPLE IN PRISON SAYS PRISON DIRECTOR LUIGI PAGANO BUT WE HAVE NEITHER THE POWER NOR THE WILL TO TREAT PEOPLE DIFFERENTLY AS THE LAST GATE TO SECTION SIX CLANGS SHUT INMATES APPROACH THE BARRED DOORS OF THEIR CELLS LIKE ANIMALS IN A ZOO HERE'S ANOTHER WAY TO PUT IT I LIVE LIKE A MONK IN A CELL SAYS FRANCO NOBILI RISING TO GREET VISITORS UNTIL MAY MR NOBILI WAS THE CHAIRMAN OF IRI SPA AN ITALIAN CONGLOMERATE WITH 400000 EMPLOYEES AND 55 BILLION IN ANNUAL SALES HE WAS AWARDED THE KNIGHT GRAND CROSS OF THE ITALIAN REPUBLIC IN 1970 AND HERE HE IS THE 67YEAROLD INMATE DESCRIBES HIS NEW LIFE IN THE SAME MEASURED WAY HE USED TO ADDRESS BOARD MEETINGS AND PRESS CONFERENCES ONE READS ONE WRITES ONE REFLECTS HE SAYS MOTIONING TO A WRITING TABLE IN HIS TINY ROOM ONE EXAMINES ONE'S CONSCIENCE MR NOBILI LIKE THE OTHERS HERE ON CHARGES RELATED TO CORRUPTION HAS YET TO BE CONVICTED OF A CRIME UNDER ITALIAN LAW MAGISTRATES CAN DETAIN HIM HERE FOR QUESTIONING FOR THREE MONTHS OR MORE BEFORE RELEASING HIM PENDING TRIAL OR EVEN DROPPING CHARGES BAIL IS UNHEARDOF LIKE MORE THAN 2600 MEN AND A HANDFUL OF WOMEN EMINENT IN THE '80S MR NOBILI IS BEING INVESTIGATED FOR ALLEGEDLY PARTICIPATING IN A KICKBACK SCHEME IN WHICH BUSINESSMEN PAID BRIBES TO POLITICIANS IN NEARLY EVERY ITALIAN PUBLICWORKS PROJECT OVER THE PAST 15 YEARS WE HAD ONE OF THOSE IMPORTANT GUYS IN HERE WITH US SAYS NELSON SUGO MAS AN ELFIN ARGENTINE WHO AVERS THAT HE IS SERVING TIME FOR ASSAULTING A POLICE OFFICER HE DESCRIBES HIS FORMER CELLMATE AS INTELLIGENT AND A GOOD DART PLAYER HE WAS OUR BUDDY MR MAS PROUDLY CONDUCTS A TOUR OF HIS EIGHTMAN CELL WHICH HE SHARES WITH ARMED ROBBERS AND CAR THIEVES HIS CELLMATES ARE LYING IN BED FANNING THEMSELVES WITH MAGAZINES AS THE SUN BEATS THROUGH THE WINDOW A DARTBOARD HANGS IN ONE CORNER ACROSS FROM A MINIATURE BASKETBALL HOOP THE WALLS ARE PAPERED WITH EROTIC PINUPS I SHOW YOU THE BATHROOM MR MAS GRINS ON THE OTHER SIDE OF A DIVIDER IS A SINK ALSO A PORCELAIN STOOPTOILET NOT MUCH MORE THAN A HOLE IN THE FLOOR WHEN MR MAS FLUSHES IT SEWAGE SWIRLS UP AND OVERFLOWS DISGUSTING NO HE ASKS IT'S TOUGH SAYS MR MAMONE THE CONVICTED DRUG TRAFFICKER WHO HAS SERVED TIME ON BOTH SIDES OF THE ATLANTIC BUT BELIEVE ME THIS PLACE IS A FIVESTAR HOTEL COMPARED TO LA COUNTY JAIL SAN VITTORE ALLOWS ITS PRISONERS TO HAVE TV SETS HOT PLATES STREET CLOTHES AND READING MATTER VISITORS ARE PERMITTED FOUR TIMES A MONTH AND PRISONERS CAN MAKE ONE PHONE CALL EVERY TWO WEEKS EVERY DAY MOST PRISONERS HAVE TIME OUTDOORS IN A COURTYARD WHERE THEY PLAY SOCCER AND TENNIS THEY BATHE THREE TIMES A WEEK IN A COMMUNAL SHOWER RELATIVE LACK OF VIOLENCE YOU DON'T GET THE VIOLENCE HERE LIKE YOU DO IN AMERICAN JAILS SAYS MR MAMONE THERE AREN'T THE HOMOSEXUAL INITIATIONS HERE SAYS THE FORMER MAYOR MR DARIDA IT'S PARADISE COMPARED TO WHAT IT COULD BE NOT EVERYONE FEELS THAT WAY LUIGI CHIESA STICKS HIS ARMS THROUGH THE BARS REACHING OUT TO TIZIANA MAIOLO AS SHE WALKS BY A VICE PRESIDENT OF THE PARLIAMENTARY JUDICIAL COMMISSION MS MAIOLO MAKES FREQUENT ROUNDS AT SAN VITTORE MONITORING PRISON CONDITIONS AND THE WELFARE OF INMATES TIZIANA HE SOBS LOOK AT WHAT'S BECOME OF ME MR CHIESA A FRIEND OF MS MAIOLO'S IS A FORMER SOCIALIST CITY COUNCIL OFFICIAL CHARGED WITH ACCEPTING A 325000 KICKBACK TO FINANCE THE PARTY HE ARRIVED IN SAN VITTORE JUST THE DAY BEFORE HE TAKES OFF HIS READING GLASSES WIPES TEARS FROM HIS EYES AND LEANS AGAINST THE BARS MAYBE OTHER PEOPLE WITHSTAND IT BETTER THAN ME BUT THIS THIS IS UNBEARABLE PRISON CONDITIONS AND THE USE OF DETENTION FOR QUESTIONING HAVE PROMPTED MUCH CRITICISM FROM BUSINESSMEN AND POLITICIANS WHO HAVE SERVED TIME HERE WITH CONDITIONS LIKE THIS THE STATE OF CIVIL RIGHTS IN THIS COUNTRY IS NOT VERY HIGH MS MAIOLO ARGUES A FIAT EXECUTIVE FILED A FORMAL COMPLAINT ABOUT SQUALID CONDITIONS AND RATS IN HIS CELL WHEN YOU'VE GOT A PRISON AT DOUBLE CAPACITY I CHALLENGE ANYONE TO NOT FIND RATS SAYS MR PAGANO THE PRISON DIRECTOR PUBLIC OPINION IS NOT ON THE SIDE OF PRISONERS THESE DAYS WHAT CAN WE DO SAN VITTORE IS DEFINITELY OVERCROWDED BUILT TO HOUSE 1000 PRISONERS IT HAS 2200 TODAY AND IT IS ABOUT TO GET MORE MILAN'S ANTICORRUPTION MAGISTRATES ESTIMATE THAT AFTER 16 MONTHS THEIR INVESTIGATIONS ARE ONLY HALF COMPLETED IN ADDITION MORE THAN 150 CURRENT MEMBERS OF PARLIAMENT WHO ENJOY IMMUNITY FROM PROSECUTION ARE UNDER INVESTIGATION MOST ARE LIKELY TO LOSE THEIR SEATS AND THUS THEIR IMMUNITY WHEN NEW ELECTIONS ARE CALLED BY ITALY'S PRESIDENT AS EARLY AS NEXT FALL RESULTING IN ANOTHER WAVE OF ARRESTS THE PENDING TRIALS OF THOUSANDS PROMISE TO CLOG THE COURTS AND THE PRISONS OF ITALY FOR YEARS TO COME FOR THE TIME BEING MEN INSIDE SAN VITTORE SPEND THEIR SUMMER AFTERNOONS REFLECTING ON THIS INGLORIOUS EPILOGUE TO ONCE GLORIOUS CAREERS MANY PEOPLE WRITE TO ME AND WANT ME TO COME BACK TO WORK SAYS MR NOBILI THE FORMER IRI CHIEF I HAVE A CLEAN CONSCIENCE 9306300024 930630 SEC URGED TO SEEK WIDER COMPETITION ON OFFFLOOR TRADES WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION SHOULD CONSIDER PROHIBITING BROKERAGE FIRMS AND PROPRIETARY TRADING SYSTEMS FROM MATCHING CUSTOMER ORDERS WITHOUT GIVING OTHER MARKETS A CHANCE TO COMPETE FOR THE TRADES THE GENERAL ACCOUNTING OFFICE SAID JAMES BOTHWELL HEAD OF FINANCIAL INSTITUTIONS AND MARKET ISSUES FOR THE GAO CONGRESS'S INVESTIGATIVE ARM TESTIFIED BEFORE THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE THAT THE VOLUME OF TRADES EXECUTED OFF THE FLOORS OF MAJOR EXCHANGES HAS RISEN IN RECENT YEARS SOME OF THE TRADES ARE MATCHED INTERNALLY BY BROKERAGE FIRMS OTHERS ARE HANDLED BY PROPRIETARY TRADING SYSTEMS THAT AUTOMATICALLY MATCH AND EXECUTE ORDERS FOR INSTITUTIONAL INVESTORS WHEN PRICES MEET SPECIFIC LEVELS THE IDEA ISN'T NEW IN 1982 THE SEC CONSIDERED ADOPTING A SOCALLED ORDER EXPOSURE RULE BUT CONCLUDED THAT THE COSTS WOULD OUTWEIGH THE BENEFITS WHILE MR BOTHWELL STOPPED SHORT OF RECOMMENDING THAT THE SEC ADOPT THE RULE HE SAID THE AGENCY SHOULD ANALYZE HOW IT WOULD WORK AND HE SUGGESTED THAT ADVANCES IN TECHNOLOGY MAY HAVE INCREASED THE BENEFITS OF SUCH A RULE AS WELL AS REDUCING SOME OF ITS COSTS MR BOTHWELL ALSO SAID THE GAO FOUND NO EVIDENCE THAT OFFFLOOR ORDERS HAVE HARMED RETAIL OR INSTITUTIONAL INVESTORS BUT HE WARNED THAT THE RISING POPULARITY OF PROPRIETARY TRADING SYSTEMS COULD HURT MARKET LIQUIDITY THE ISSUE IS EXPECTED TO BE ADDRESSED IN THE SEC'S MARKET 2000 STUDY A COMPREHENSIVE REPORT ON THE FINANCIAL MARKETS SCHEDULED FOR RELEASE THIS FALL BUT MR BOTHWELL SAID THE SEC SHOULD REVIEW MARKET DEVELOPMENTS FREQUENTLY TO ENSURE THAT CUSTOMERS PARTICULARLY THOSE IN THE RETAIL SECTOR AREN'T BEING SHORTCHANGED 9306300023 930630 HOUGHTON MIFFLIN SETS 62 MILLION CHARGE FOR SECOND QUARTER BOSTON HOUGHTON MIFFLIN CO SAID IT WILL TAKE A SECONDQUARTER CHARGE OF 62 MILLION OR 44 CENTS A SHARE TO COVER THE COST OF WORKFORCE REDUCTIONS REFINANCING NOTES AND CLOSING A WAREHOUSE BUT THE TEXTBOOK PUBLISHER FORECAST STRONG RESULTS FOR THE YEAR BEFORE THE EFFECT OF THE CHARGE HOUGHTON ALSO SAID THAT RESULTING COST SAVINGS WILL BOOST 1994 EARNINGS TO AT LEAST 270 A SHARE AND THAT 1995 PERFORMANCE SHOULD RISE SHARPLY ON HIGHER SALES AND LOWER COSTS IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY HOUGHTON ROSE 125 CENTS TO 38875 THE PRETAX EXPENSES FOR JOB CUTS AND WAREHOUSE CLOSURE TOTAL 84 MILLION WHILE EARLY REDEMPTION OF 25 MILLION IN SENIOR NOTES DUE DECEMBER 1994 WILL RESULT IN A PRETAX CHARGE OF 16 MILLION YIELDING THE COMBINED AFTERTAX COST OF 62 MILLION WHILE THESE ACTIONS WILL CUT SECONDQUARTER EARNINGS THE COST AND INTEREST SAVINGS IN THE SECOND HALF WILL BE ABOUT 7 MILLION OR 31 CENTS A SHARE SAID NADER F DAREHSHORI CHAIRMAN AND CHIEF EXECUTIVE HE SAID SAVINGS IN 1994 AND 1995 WILL BE CONSIDERABLY GREATER THAN THAT MR DAREHSHORI SAID FULLYEAR NET INCOME AND PERSHARE EARNINGS SHOULD BE SIGNIFICANTLY BETTER THAN THE 268 MILLION OR 191 A SHARE EARNED IN 1992 BEFORE SPECIAL CHARGES PRIOR TO THE CHARGES THE COMPANY HAD EXPECTED 1993 EARNINGS OF AT LEAST 235 A SHARE IN THE YEARAGO QUARTER HOUGHTON HAD NET OF 117 MILLION OR 82 CENTS A SHARE ON SALES OF 1257 MILLION A SPOKESWOMAN SAID THE COMPANY HAS CUT 177 JOBS SINCE THE BEGINNING OF 1991 AND SHED AN ADDITIONAL 145 POSITIONS WITH THE SALE OF A UNIT TOTAL PAYROLL NOW STANDS AT 1785 9306300022 930630 WHO'S NEWS PROFFITT'S INC PROFFITT'S INC KNOXVILLE TENN SAMUEL E BEALL III 43 YEARS OLD WAS ELECTED A DIRECTOR OF THIS DEPARTMENT STORE COMPANY INCREASING THE BOARD TO NINE MEMBERS MR BEALL IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MORRISON RESTAURANTS INC BASED IN MOBILE ALA 9306300021 930630 LETTERS TO THE EDITOR BASIC LATIN IN HIS JUNE 7 EDITORIAL PAGE ARTICLE THE GUINIER MESS SETH LIPSKY REFERRED TO AN ADHOMINUM SIC ATTACK ON LANI GUINIER EVEN SUCH A MILDLY PEDANTIC USAGE ILL SUITS AN INDIVIDUAL WHO HAS FORGOTTEN OR WORSE YET NEVER KNEW THE CORRECT ACCUSATIVE FORM HOMINEM OF THE THIRD DECLENSION NOUN HOMO 9306300020 930630 COMMODITIES COPPER FUTURES RISE IN VOLATILE TRADING AS PRICES REACT TO MIXED NEWS AFFECTING SUPPLY DEMAND BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL COPPER FUTURES PRICES SETTLED HIGHER AFTER A DAY OF VOLATILE TRADING ON MIXED NEWS AFFECTING THE SUPPLY AND DEMAND FOR COPPER AT NEW YORK'S COMMODITY EXCHANGE COPPER FOR SEPTEMBER DELIVERY WAS UP 14 CENTS TO 859 CENTS A POUND EARLIER IN THE DAY IT HAD TRADED AS LOW AS 83 CENTS A POUND COPPER PRICES PLUNGED YESTERDAY MORNING AS TRADERS DIGESTED A DISAPPOINTING COMMERCE DEPARTMENT REPORT ON SINGLEFAMILY HOME SALES THE DEPARTMENT REPORTED THAT SALES OF SINGLEFAMILY HOMES IN MAY FELL TO 571000 UNITS DOWN 21 THE DECLINE WAS THE LARGEST SINCE A 219 PLUNGE IN APRIL 1980 THE HOMESALES REPORT TYPICALLY HAS A STRONG EFFECT ON COPPER PRICES BECAUSE COPPER IS ONE OF THE BASIC BUILDING BLOCKS OF THE CONSTRUCTION INDUSTRY YESTERDAY'S COMMERCE DEPARTMENT REPORT WAS SEEN AS AN INDICATION THAT US DEMAND FOR COPPER WAS LIKELY TO DECLINE ANOTHER FACTOR WEIGHING THE MARKET DOWN IN EARLY TRADING WAS A REPORT THAT COPPER INVENTORIES AT THE LONDON METALS EXCHANGE HAD DECLINED ONLY 7150 TONS SINCE FRIDAY MANY TRADERS HAD EXPECTED A BIGGER DRAWDOWN IN THE LONDON EXCHANGE'S INVENTORIES ANALYSTS SAID WHEN THESE DEVELOPMENTS PUSHED THE PRICE OF THE SEPTEMBER CONTRACT DOWN TO 83 CENTS A POUND COPPER DEALERS ENTERED THE MARKET AS BUYERS THEIR PURCHASES OF FUTURES CONTRACTS SPAWNED A RALLY THAT LASTED THROUGH THE REST OF THE TRADING SESSION THERE WAS PLENTY OF POSITIVE FUNDAMENTAL NEWS THAT THE MARKET HAD SHRUGGED OFF TO THAT POINT SAID BERNARD SAVAIKO ANALYST FOR PAINEWEBBER INC THROUGHOUT THE AFTERNOON THE MARKET WAS REACTING TO THE POSITIVES FOR EXAMPLE THE JAPANESE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY YESTERDAY REPORTED THAT JAPAN'S INVENTORIES OF REFINED COPPER WERE AT 41552 TONS IN MAY COMPARED WITH 50958 A YEAR EARLIER THAT WAS INTERPRETED AS AN INDICATION THAT DEMAND FOR COPPER BY JAPANESE INDUSTRY IS STRONGER THAN EXPECTED MOREOVER MOST IN THE COPPER INDUSTRY NOW EXPECT CHINA TO BUY AS MUCH AS 30000 TONS OF COPPER THIS YEAR A FEW WEEKS AGO FEW EXPECTED CHINA TO BUY ANY SIGNIFICANT AMOUNT OF COPPER THIS YEAR FOREIGN DEMAND IS IMPORTANT TO COPPER PRICES BECAUSE THREEFOURTHS OF WORLD COPPER CONSUMPTION TAKES PLACE OUTSIDE OF THE US'S BORDERS ON THE SUPPLY SIDE THERE WAS ALSO NEWS THAT TRADERS INTERPRETED AS POSITIVE FOR COPPER PRICES A MECHANICAL ACCIDENT AT A HUGE CHILEAN COPPER MINE CALLED CHUQUICAMATA IS EXPECTED TO RESULT IN THE LOSS OF 5 OF THIS YEAR'S OUTPUT AT THE MINE AND THERE IS TALK OF A STRIKE AT ONE OF THE THREE BIG US COPPER MINES ALL THIS ANALYSTS SAID MAY PRODUCE A CONTINUING RALLY OF COPPER PRICES IN COMING WEEKS WE SHOULD SEE THE PRICE OF THE SEPTEMBER CONTRACT UP AROUND 885 CENTS A POUND MAYBE EVENTUALLY MOVING UP TO 90 OR 91 CENTS SOMETIME DURING THE SUMMER MR SAVAIKO SAID IN OTHER COMMODITY MARKETS GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES ROSE ON CONTINUING GLOOM OVER THE PROGRESS OF THE PLANTING OF THIS YEAR'S SOYBEAN CROP AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR NOVEMBER DELIVERY WERE UP 12 3/4 CENTS TO 637 A BUSHEL THE US AGRICULTURE DEPARTMENT YESTERDAY RELEASED A PLANTINGPROGRESS REPORT THAT SHOWED THIS YEAR'S PLANTINGS TO BE ONLY 89 COMPLETE MOST TRADERS HAD BEEN EXPECTING THE REPORT TO SHOW PLANTINGS AT LEAST 92 COMPLETE POOR IOWA IS ONLY 88 COMPLETE SAID RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO AT THIS TIME LAST YEAR IT WAS 100 COMPLETE LATE PLANTING OF SOYBEANS TENDS TO REDUCE YIELDS AND MOST ANALYSTS PREDICT THAT SOYBEAN FUTURES PRICES WILL RISE TO AT LEAST 650 A BUSHEL IN COMING WEEKS YET OVER THE LONG TERM THE HIGH PRICES COULD DIMINISH DEMAND FOR SOYBEANS AS NATIONS SUCH AS MEXICO WHICH HAVE BEEN BIG BUYERS OF US SOYBEANS BEGIN TO LOOK FOR CHEAPER ALTERNATIVES MR LOEWY SAID ENERGY SPOT CRUDE OIL PRICES SETTLED ABOVE 19 A BARREL FOR THE FIRST TIME SINCE JUNE 10 LARGELY ON TECHNICAL FACTORS MARKET PLAYERS GENERALLY IGNORED A SPATE OF SMALL NEWS ITEMS THAT IN MORE VOLATILE TIMES WOULD HAVE SPARKED ACTIVITY LIGHT SWEET CRUDE FOR AUGUST DELIVERY ROSE 11 CENTS A BARREL TO 1901 ON THE NEW YORK MERCANTILE EXCHANGE THE CONTRACT TRADED AS HIGH AS 1913 FOR THE MOST PART TRADERS DIDN'T REACT TO NEWS THAT THE UNITED NATIONS PLANS TO MEET WITH IRAQ JULY 7 TO DISCUSS A ONETIME SALE OF AS MUCH AS 16 BILLION OF OIL IRAQI OIL CURRENTLY IS EMBARGOED BY THE UN HEATING OIL PRICES ALSO ROSE WHILE GASOLINE FUTURES DECLINED 9306300019 930630 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE MOST AMERICANS AGREE THAT THE CLOTHES THEY WEAR AND THE CAR THEY DRIVE SAY SOMETHING ABOUT WHO THEY ARE BUT FRIENDS TOP THE LIST OF THINGS THAT PEOPLE SAY CONVEY SELFEXPRESSION IN A STUDY BY THE ROPER ORGANIZATION NEW YORK 81 OF ADULTS SAY THE FRIENDS THEY HAVE ARE AN EXPRESSION OF THEMSELVES IN SOME WAY MUSIC RANKS SECOND AT 74 FOLLOWED BY HOBBIES AT 71 AND CLOTHES JEWELRY AND ACCESSORIES AT 70 THE HOMES PEOPLE LIVE IN AND THE CAUSES THEY CONTRIBUTE TO OR WORK FOR GET ROUGHLY EQUAL TIME CITED BY 64 AND 63 OF RESPONDENTS PEOPLE SAY THE MAGAZINES THEY READ SLIGHTLY OUTWEIGH THE TELEVISION SHOWS THEY WATCH 59 VS 54 VACATIONS AND CARS ALSO GET MENTIONED BY A MAJORITY OF RESPONDENTS AGREED TO AS PART OF ONE'S SELFIMAGE BY 53 AND 52 OF ADULTS ONLY 47 SAY THEIR JOB SAYS SOMETHING ABOUT THEM AND JUST 39 SAY THE SAME ABOUT THE CLUBS THEY BELONG TO THESE SHARES ARE SO LOW IN PART BECAUSE THE CATEGORIES DON'T APPLY TO AS MANY PEOPLE OF THOSE WHO HAVE AN OPINION ON CLUBS ONE WAY OR THE OTHER BECAUSE THEY BELONG TO A CLUB 65 AGREE THAT IT IS A MEANS OF SELFEXPRESSION THE SAME HOLDS TRUE FOR THOSE WITH JOBS WHEN ASKED WHAT ITEMS ARE AMONG THOSE THAT SAY THE MOST ABOUT THEMSELVES 39 OF AMERICANS CITE THEIR FRIENDS 26 THEIR HOMES AND 12 EACH THEIR JOBS AND CLOTHES CAUSES RANK HIGH FOR 11 HOBBIES FOR 10 THOUGH MUSIC AND CARS SAY SOMETHING ABOUT MOST PEOPLE THEY ARE AMONG THE MOST IMPORTANT FOR JUST 8 AND 7 RESPECTIVELY THE BONDS BETWEEN PARENT AND CHILD PROVIDE FINANCIAL PHYSICAL AND EMOTIONAL SUPPORT BUT A STUDY FINDS THAT MANY AMERICAN ADULTS AREN'T INVOLVED WITH SUCH EXCHANGES WITH THEIR OWN PARENTS THREE RESEARCHERS AT PENNSYLVANIA STATE UNIVERSITY DENNIS P HOGAN DAVID J EGGEBEEN AND CLIFFORD CLOGG FOUND IN A 198788 SURVEY THAT AMONG ADULTS WHO HAD AT LEAST ONE SURVIVING PARENT AND ONE CHILD AGE 18 OR UNDER FEWER THAN HALF EXCHANGED MONEY ADVICE OR PHYSICAL OR HOUSEHOLD CARE WITH THEIR PARENTS AMONG THE 97 OF RESPONDENTS WHO HAD NO OLDER PARENT LIVING WITH THEM ONLY 4 HAD GIVEN OR LOANED AN OLDER PARENT AT LEAST 200 IN THE PREVIOUS FIVE YEARS THOUGH 16 HAD RECEIVED SUCH A GIFT JUST 3 HAD PROVIDED PHYSICAL CARE FOR A DISABLED OR ILL OLDER PARENT IN THE PREVIOUS YEAR WHILE 26 HAD RECEIVED BABYSITTING SERVICES FROM A PARENT FOR THEIR OWN CHILDREN IN THE PREVIOUS MONTH ON THE OTHER HAND ADULT CHILDREN WERE MORE LIKELY THAN THEIR PARENTS TO PROVIDE INTERGENERATIONAL ASSISTANCE WITH TRANSPORTATION HOUSEWORK OR REPAIRS 31 VS 18 AND IN ONE AREA THE EXCHANGE WAS ALMOST MUTUAL TWENTYSIX PERCENT OF ADULT CHILDREN HAD GIVEN THEIR PARENTS ADVICE ENCOURAGEMENT OR MORAL SUPPORT IN THE PREVIOUS YEAR AND 29 HAD RECEIVED SOME THE RESEARCHERS GROUPED RESPONDENTS INTO FOUR CATEGORIES BASED ON THEIR LEVEL OF INTERACTION WITH THEIR PARENTS FIFTYTHREE PERCENT ARE LOW EXCHANGERS UNLIKELY TO EITHER GIVE OR RECEIVE HELP SEVENTEEN PERCENT GIVE SUBSTANTIALLY MORE THAN THEY RECEIVE AND 19 GET MORE THAN THEY GIVE HIGH EXCHANGERS ARE THE SMALLEST GROUP 11 THESE ADULTS BOTH GIVE ASSISTANCE TO AND RECEIVE SUPPORT FROM OLDER PARENTS AT HIGHER LEVELS THAN THOSE WHO ARE PREDOMINANTLY GIVERS OR RECEIVERS FOUR IN 10 ADULTS ENJOY LOOKING AT FEEDING AND TAKING PICTURES OF WILD ANIMALS OUTSIDE OF ZOOS SEVENTYSIX MILLION AMERICANS AGE 16 OR OLDER PARTICIPATED IN SUCH NONCONSUMPTIVE WILDLIFEASSOCIATED RECREATION ACCORDING TO A 1991 SURVEY BY THE INTERIOR DEPARTMENT'S FISH AND WILDLIFE SERVICE THIS DEFINITION INCLUDES ACTIVITIES AT OR NEAR HOME AS WELL AS VISITS TO PUBLIC OR PRIVATE LAND FOR THE PURPOSE OF INTERACTING WITH WILD ANIMALS IN THEIR NATURAL HABITAT IT EXCLUDES TRIPS TO MUSEUMS ZOOS OR AQUARIUMS AS WELL AS CONSUMPTIVE ACTIVITIES SUCH AS FISHING AND HUNTING RURAL RESIDENTS ARE MUCH MORE LIKELY THAN URBANITES 51 VS 36 TO WATCH AND FEED BIRDS AND OTHER CREATURES EVEN SO ADULTS IN URBAN AREAS MAKE UP TWOTHIRDS OF TOTAL PARTICIPANTS BECAUSE OF THEIR FAR GREATER OVERALL NUMBERS UNLIKE OTHER OUTDOOR ACTIVITIES BIRDWATCHING AND THE LIKE AREN'T ESPECIALLY STRENUOUS WHICH MAY BE WHY PARTICIPATION RATES DON'T VARY MUCH BY AGE IN FACT PEOPLE 18 TO 24 YEARS OLD SEEM TO HAVE THE LEAST INTEREST WITH A PARTICIPATION RATE OF 28 COMPARED WITH 38 FOR THOSE 65 OR OLDER PEOPLE AGES 35 TO 44 ARE MOST LIKELY TO HANG OUT WITH WILD ANIMALS 46 POSSIBLY BECAUSE THEY ARE LIKELY TO HAVE SOME OF THEIR OWN NAMELY CHILDREN PARTICIPATION IN WILDLIFE ACTIVITIES RISES STEADILY WITH EDUCATION AND INCOME ALASKANS AND VERMONTERS SURROUNDED BY WIDE OPEN SPACES AND WOODED MOUNTAINS ARE MOST LIKELY TO INTERACT WITH WILDLIFE WITH A 62 PARTICIPATION RATE RESIDENTS OF HAWAII AND CALIFORNIA HAVE THE LOWEST RATES 27 AND 29 RESPECTIVELY THE AVERAGE NUMBER OF WORK DAYS LOST BECAUSE OF WORKRELATED INJURY OR ILLNESS ROSE TO 22 DAYS PER CASE IN 1991 FROM 18 DAYS IN 1987 THE RATE OF DISABILITY HASN'T CHANGED BUT RECUPERATION TIME HAS INCREASED THE BUREAU OF LABOR STATISTICS REPORTS THE ROOMS MAY BE SMALL AND THE PAINT PEELING BUT PRIDE OF OWNERSHIP MAKES UP FOR A LOT THE CENSUS BUREAU'S 1989 AMERICAN HOUSING SURVEY FINDS THAT 74 OF FIRSTTIME HOMEOWNERS SAY THEY LIKE THEIR NEW HOME BETTER THAN THEIR PREVIOUS RESIDENCE COMPARED WITH JUST 64 OF REPEAT BUYERS BUREAU STATISTICIAN ELLEN WILSON SUGGESTS THAT FIRSTTIME HOMEOWNERS MOVING FROM A RENTAL SITUATION MAY EXPERIENCE A GREATER IMPROVEMENT IN LIVING CONDITIONS THAN DO REPEAT BUYERS THEY MAY ALSO BE MORE TOLERANT OF PROBLEMS 9306300018 930630 3DO CORP REPORTS LOSS SAN MATEO CALIF 3DO CORP SAID IT POSTED A NET LOSS OF 154 MILLION OR 102 A SHARE FOR THE 12 MONTHS ENDED MARCH 31 THE STARTUP COMPANY WHICH IS DEVELOPING INTERACTIVE MULTIMEDIA PRODUCTS SAID IT POSTED A NET LOSS OF 181 MILLION OR 121 A SHARE FOR THE 18 MONTHS SINCE ITS FOUNDING ON OCT 1 1991 THE RESULTS DON'T INCLUDE CERTAIN ACQUISITIONS THAT 3DO COMPLETED IN APRIL OR ITS INITIAL PUBLIC OFFERING COMPLETED IN MAY THE COMPANY'S INVESTORS INCLUDE A NUMBER OF CONSUMER ELECTRONICS AND ENTERTAINMENT FIRMS SUCH AS MATSUSHITA ELECTRIC INDUSTRIAL CO AMERICAN TELEPHONE & TELEGRAPH COAND TIME WARNER INC IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY 3DO CLOSED AT 27 3/4 DOWN 1 9306300017 930630 LETTERS TO THE EDITOR KISS ME AGAIN AND I'LL SUE YOU IN REGARD TO YOUR JUNE 11 STORY AS REMEDY FOR CERTAIN BROKEN PROMISES PROFESSOR PROPOSES SEXUAL FRAUD' SUITS JUST WHAT WE NEEDMORE LAW THIS TIME TELLING US HOW TO CONDUCT OUR SEXUAL AFFAIRS MAYBE MEN AND WOMEN COULD READ EACH OTHER A SEXUAL MIRANDA ON THE FIRST DATE OR SIGN LIABILITY WAIVERS WITH LAWYERS PRESENT OF COURSE ALL THIS LITIGATION IS ANOTHER SYMPTOM OF THAT DEEP AMERICAN PROBLEM THE ABDICATION OF PERSONAL RESPONSIBILITY WE'RE ASKING THE COURTS TO RIGHT EVERY WRONG IN AN IMPERFECT WORLD I DON'T THINK WE CAN AFFORD IT AS TAXPAYERS SUPPORTING A BLOATED AND INEFFICIENT COURT SYSTEM THROUGH INFLATED INSURANCE PREMIUMS TO COVER HUGE LAWSUIT SETTLEMENTS AND AS CONSUMERS WHO PAY THE HIDDEN COSTS OF LIABILITY PROTECTION IN GOODS AND SERVICES GEORGE BERNARD SHAW SAID ALL PROFESSIONS ARE CONSPIRACIES AGAINST THE LAITY BUT MOST ARE BENIGN COMPARED WITH WHAT LAWYERS HAVE GOING 9306300016 930630 EL PASO ELECTRIC MORTGAGE HOLDERS BACK BUYOUT PLAN BY BRIDGET O'BRIAN AND ANN DE ROUFFIGNAC STAFF REPORTERS OF THE WALL STREET JOURNAL HOLDERS OF EL PASO ELECTRIC CO'S MORTGAGE BONDS SAID THEY WILL BACK CENTRAL & SOUTH WEST CORP'S PLAN TO MAKE THE EL PASO TEXAS UTILITY A WHOLLY OWNED UNIT THAT'S THE SECOND MAJOR CREDITOR GROUP IN THE LAST WEEK TO THROW ITS SUPPORT BEHIND CENTRAL & SOUTH WEST'S 21 BILLION BUYOUT PROPOSAL THE MOVE MEANS THE DALLAS UTILITY HAS PULLED AHEAD IN WHAT HAS TURNED INTO A BIDDING WAR WITH SOUTHWESTERN PUBLIC SERVICE CO AMARILLO TEXAS EL PASO IS OPERATING UNDER BANKRUPTCYCOURT SUPERVISION THE FIRST AND SECONDMORTGAGE HOLDERS WHO ARE OWED 465 MILLION FELL IN LINE LATE YESTERDAY AFTER CENTRAL & SOUTH WEST CHANGED THE TERMS OF ITS ORIGINAL OFFER TO ALLOW HOLDERS TO RECEIVE WHAT THEY'RE OWED IN CASH WHEN EL PASO'S REORGANIZATION PLAN BECOMES EFFECTIVE PREVIOUSLY CENTRAL WAS OFFERING 100 CENTS ON THE DOLLAR PLUS ACCRUED INTEREST BUT ONLY IN STOCK WILBUR ROSS FINANCIAL ADVISER TO THE FIRST AND SECONDMORTGAGE BONDHOLDERS SAID THOSE BONDHOLDERS WHO WANT TO STAY WITH CSW WILL BE ABLE TO AND THOSE WHO WISH TO CASH IN WILL BE ABLE TO LAST WEEK EL PASO'S UNSECURED CREDITORS ENDORSED CENTRAL & SOUTH WEST'S PLAN AFTER THE UTILITY AGREED TO PAY THEM 925 CENTS ON THE DOLLAR UP FROM 90 CENTS THE UNSECURED GROUP WHICH IS OWED 360 MILLION HOLDS ABOUT 16 OF EL PASO'S TOTAL DEBT YESTERDAY'S ACTIONS WILL MAKE IT MORE DIFFICULT FOR SOUTHWESTERN PUBLIC SERVICE TO PREVAIL IN ITS BID FOR EL PASO ELECTRIC A SOUTHWESTERN SPOKESMAN REFERRING TO THE HOLDERS' MOVE YESTERDAY SAID WE'RE EVALUATING OUR OPTIONS ALTHOUGH SOUTHWESTERN HAS BEEN BIDDING AGAINST CENTRAL & SOUTH WEST FOR MORE THAN A MONTH THE TERMS OF ITS OFFER HAVE NEVER BEEN MADE PUBLIC MR ROSS THE HOLDERS' FINANCIAL ADVISER AND MANAGING DIRECTOR OF ROTHSCHILD INC OF NEW YORK SAID HIS GROUP HAS HELD DISCUSSIONS WITH SOUTHWESTERN BUT OUR GROUP CONCLUDED THAT CSW HAD MET OUR REQUIREMENTS AND WAS MUCH MORE LIKELY TO BE ABLE TO GET THROUGH THE BANKRUPTCY PROCESS VERY QUICKLY THE BACKING OF THE MORTGAGE HOLDERS AND UNSECURED CREDITORS DOESN'T MEAN CENTRAL & SOUTH WEST IS A SURE WINNER IN THE CONTEST THAT'S UP TO THE BANKRUPTCY JUDGE OVERSEEING EL PASO'S CASE IN ADDITION SEVERAL OTHER CREDITOR GROUPS STILL HAVE TO WEIGH IN IN THE MEANTIME CENTRAL & SOUTH WEST HAS TAKEN ITS CAMPAIGN TO RATEPAYERS IN EL PASO SETTING UP AN ECONOMIC DEVELOPMENT OFFICE IN EL PASO TO LURE OTHER LARGE COMPANIES TO THE AREA WHO PRESUMABLY WILL CREATE MORE JOBS AND ALSO BUY MORE ELECTRICITY THAT APPARENTLY HASN'T SWAYED EL PASO'S CITY COUNCIL WHICH FILED A MOTION IN BANKRUPTCY COURT EXPRESSING ITS SUPPORT OF SOUTHWESTERN'S EFFORTS TO FILE ITS OWN PLAN 9306300015 930630 CREDIT RATING RATINGS ON DEERE'S LONGTERM DEBT ARE LOWERED BY STANDARD & POOR'S NEW YORK STANDARD & POOR'S CORP LOWERED ITS RATINGS ON DEERE & CO'S ABOUT 5 BILLION IN LONGTERM DEBT CITING THE COMPANY'S OBLIGATION TO PROVIDE MEDICAL BENEFITS FOR RETIRED WORKERS WHILE THE AGRICULTUREEQUIPMENT MAKER'S DEBT USAGE GENERALLY IS LIMITED TO FINANCING PURCHASES BY DEALERS AND CUSTOMERS S&P SAID ITS FINANCIAL PROFILE IS WEAKENED AFTER FACTORING IN OBLIGATIONS FOR POSTRETIREMENT MEDICAL BENEFITS AND UNFUNDED PENSIONS DANIEL R DISENSO A DIRECTOR OF CORPORATE FINANCE AT S&P SAID THE MARKDOWN ON CONCERNS OVER RETIREE BENEFITS ISN'T A FIRST THERE HAVE BEEN SOME ACTIONS PARTICULARLY IN THE AUTOMOTIVE SECTOR ON SIMILAR GROUNDS HE SAID AS MORE INFORMATION ON COMPANIES' EXPOSURE BECOMES AVAILABLE THERE COULD BE MORE ACTIONS BUT NOT NECESSARILY A WHOLESALE TREND THE MOST LIKELY TARGETS FOR ACTIONS MR DISENSO SAID WOULD BE THOSE COMPANIES WITH GENEROUS BENEFITS AND THUS THOSE WITH THE STRONGEST UNIONS S&P MARKED DOWN THE SENIOR DEBT OF DEERE AND ITS JOHN DEERE CAPITAL CORP UNIT TO SINGLEAMINUS FROM SINGLEA AND LOWERED THE SUBORDINATED DEBT OF THE PARENT AND FINANCE UNIT TO TRIPLEBPLUS FROM SINGLEAMINUS COMMERCIAL PAPER WAS LOWERED TO A2 FROM A1 THE RATINGS CONTINUE TO REFLECT DEERE'S VERY STRONG BUSINESS PROFILE IN AN INTENSELY COMPETITIVE AND VOLATILE INDUSTRY S&P SAID AS WELL AS THE EXPECTATION THAT DEERE WILL GENERATE SATISFACTORY EARNINGS MEASURES OVER THE BUSINESS CYCLE DEERE'S RESULTS DEPRESSED OVER THE PAST TWO YEARS SHOULD IMPROVE OVER THE INTERMEDIATE TERM S&P SAID THE RATINGS COMPANY EXPECTS DEERE TO BENEFIT FROM HEALTHY US AGRICULTURAL SECTOR CASH FLOW AND REDUCED FARMER DEBT LEVELS A MODESTLY IMPROVING PRICING ENVIRONMENT COMPETITOR RETRENCHMENT AND A GOOD COST BASE IN MOLINE ILL A DEERE SPOKESMAN CALLED THE COMPANY SOMEWHAT SURPRISED BY S&P'S ACTION PARTICULARLY IN LIGHT OF OUR IMPROVED EARNINGS AND OUTLOOK HE ALSO SAID THE COMPANY'S PENSION FUNDS ARE FINANCIALLY VERY SOLID AND REGARDING THE UNDERFUNDING SAID THAT IN RECENT YEARS THE COMPANY HAS BEEN CONTRIBUTING INCREASING AMOUNTS TO OUR FUNDS AT A LEVEL SIGNIFICANTLY ABOVE THE LEVEL REQUIRED BY FEDERAL TAX LAW AND WITHIN PERMISSIBLE INTERNAL REVENUE SERVICE LIMITS IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE DEERE CLOSED AT 64625 UP 25 CENTS 9306300014 930630 LETTERS TO THE EDITOR WE DON'T TURN KIDS AGAINST PARENTS DANA MACK'S WAR ON DRUGS WAR ON PARENTS EDITORIAL PAGE JUNE 17 SERIOUSLY DISTORTS THE APPROACH AND CONTENT OF OUR DRUG EDUCATION CURRICULUM HERE'S LOOKING AT YOU 2000 OUR PROGRAM IS THE MOST WIDELY USED AND ONE OF THE MOST RESPECTED DRUG EDUCATION CURRICULUMS IN THE COUNTRY IT WAS DEVELOPED WITH THE PARTICIPATION OF PARENTS TEACHERS SCIENTISTS EDUCATORS ADMINISTRATORS AND MOST IMPORTANTLY CHILDREN EVERY LESSON HAS BEEN REVIEWED BY ADULTS AND TESTED BY STUDENTS FAR FROM MAKING PARENTS THE ENEMY HERE'S LOOKING AT YOU 2000 ATTEMPTS TO INVOLVE PARENTS AND FAMILIES AS MUCH AS POSSIBLE EVERY UNIT IS SUPPLEMENTED WITH NEWSLETTERS THAT GO HOME TO PARENTS DESCRIBING WHAT THE STUDENTS ARE LEARNING AND SUGGESTING IDEAS FOR CONTINUING THE INSTRUCTION AT HOME THE PROGRAM EMPHATICALLY DOES NOT SUGGEST THAT PARENTS WHO DRINK THE OCCASIONAL GLASS OF WINE ARE ALCOHOLICS CHILDREN DO LEARN THAT ALCOHOL IS NOT GOOD FOR THEM BUT THEY'RE ALSO TOLD THAT MOST PEOPLE WHO DRINK DON'T BECOME ALCOHOLICS THE CURRICULUM DOES ENCOURAGE CHILDREN TO DISCUSS THEIR PROBLEMS WITH CARING ADULTS WHETHER IT BE A SCHOOL COUNSELOR A TEACHER OR THEIR OWN PARENTS THE MESSAGE IS THAT CHILDREN CAN GET HELP AND THINGS CAN GET BETTER FOR THEM AND THE PROGRAM DOES ENCOURAGE AND TRAIN TEACHERS TO PAY ATTENTION TO FAMILY MANAGEMENT PROBLEMS WHATEVER THE SITUATION IN MS MACK'S HOME THE FACT IS THAT THERE ARE TOO MANY HOMES WHERE SERIOUS FAMILY PROBLEMS IMPAIR THE CHILD'S HEALTHY DEVELOPMENT EVEN THE HOME SAFETY CHECK MS MACK COMPLAINS ABOUT IS DESIGNED FOR THE CHILD ALONG WITH THE PARENT TO MAKE THE HOME A SAFE ENVIRONMENT DOES MS MACK REALLY WANT TO DEBATE WHETHER CHILDREN SHOULD BE KEPT AWAY FROM ALCOHOL NICOTINE AND CAFFEINE AS WELL AS AMMONIA AND MURIATIC ACID SIMILARLY ASKING A CHILD TO BRING A BEER FROM THE REFRIGERATOR IS ONE EXAMPLE OF BEHAVIOR THAT MAY IMPLY TO THE CHILD A TACIT APPROVAL OF DRUG USE TAKEN ALONE IT'S PROBABLY INSIGNIFICANT HOWEVER ANYONE READING THE PROGRAM'S DISCUSSION OF RISK FACTORS WILL UNDERSTAND THAT AN ENTIRE CONSTELLATION OF BEHAVIORS LIKE THIS HAS BEEN ASSOCIATED WITH A CHILD'S LATER POSITIVE ATTITUDES TOWARD DRUGS MS MACK IMPLIES THAT HERE'S LOOKING AT YOU 2000 IS MANDATED BY THE STATE OF CONNECTICUT NOT SO IN FACT SCHOOL DISTRICTS IN CONNECTICUT JUST LIKE SCHOOL DISTRICTS THROUGHOUT THE COUNTRY HAVE FREELY CHOSEN HERE'S LOOKING AT YOU 2000 AMONG MANY OTHER DRUG EDUCATION CURRICULA I WON'T SPECULATE ON MS MACK'S AGENDA BUT I WISH SHE'D STOP SPECULATING ON OURS DOES SHE REALLY THINK THAT WE WANT TO TURN KIDS AGAINST THEIR PARENTS DOES SHE REALLY SUSPECT US OF URGING TEACHERS TO SPY ON THEIR STUDENTS' FAMILIES DOES SHE REALLY BELIEVE THAT THE CURRICULUM NEFARIOUSLY WANTS CHILDREN TO BE FRIGHTENED AND UNHAPPY WHY WOULD WE DO SUCH A THING WHAT'S IN IT FOR US DANA MACK IS RIGHT ON TARGET IN HER ANALYSIS THAT OUR KIDS ARE BEING INDOCTRINATED TO BELIEVE THERE IS NO DISTINCTION BETWEEN A LEGAL PRODUCT BEER AND ILLICIT DRUGS CERTAIN SPECIAL INTEREST GROUPS ARE WORKING HARD TO LINK ILLEGAL DRUGS WITH ALCOHOL IN NATIONAL POLICY EDUCATION RESEARCH AND THE PUBLIC MIND AND AS MS MACK POINTS OUT THIS TYPE OF LINKAGE IN THE CLASSROOM PITS CHILDREN AGAINST PARENTS THEIR BEST TEACHERS AND ROLE MODELS THE PHRASE ALCOHOL AND OTHER DRUGS CONFUSES CHILDREN AND DISTORTS FACTS IT CREATES COMMUNICATIONS PROBLEMS BETWEEN PARENTS AND THEIR CHILDREN IN AN AREA WHERE KIDS CAN'T AFFORD TO BE CONFUSED A CHILD NEEDS TO UNDERSTAND WHY IT'S NORMAL AND OKAY FOR HIS OR HER FATHER MOTHER OF OTHER ADULTS TO DRINK RESPONSIBLY AS 100 MILLION AMERICAN ADULTS DO CREATING AN ASSOCIATION BETWEEN BEER AND CRACK COCAINE OR HEROIN IS AN OUTRAGEOUS AND DAMAGING DISTORTION THE BEER INDUSTRY IS PART OF THE FABRIC OF OUR NATION'S LIFE AND THE LIVES OF MANY HONEST UPRIGHT CITIZENS IT SPENDS TENS OF MILLIONS OF DOLLARS TO PROMOTE RESPONSIBLE DRINKING AND TO COMBAT ALCOHOL ABUSE IF WE WANT TO KEEP OUR KIDS STRAIGHT WE'D BETTER GET OUR MESSAGE STRAIGHT MS MACK APPEARS TO WRITE FROM THE MARTINISWILLING WHITE SUBURBIA OF THE '50S SURELY HER CHILDREN ARE IMMUNE FROM THE THREATS OF SUBSTANCE ABUSE AIDS VIOLENCE ALCOHOLRELATED ACCIDENTS AND SOCIAL CARNAGE THAT MARKS LIFE FOR THE REST OF US WHILE THE CHILDREN OF THE MACKS GET TO GO TO THE LIBRARY AND PRESUMABLY TO SOMEPLACE LIKE MARTHA'S VINEYARD AN INCREASING PROPORTION OF OUR URBAN AND NOT SO URBAN CHILDREN FACE NOT THE JOYS OF CHILDHOOD BUT THE HORRIFYINGLY REAL WORLDS OF ALCOHOLRELATED VIOLENCE CHILD POISONINGS AND A SPATE OF REALWORLD TRAGEDIES THE SCHOOL SYSTEM LIKE ANY OTHER INSTITUTION IS A CONSENSUS OF IDEAS SOME ARE TRITE SOME SIMPLY NEED REFINEMENT RIDICULE BLURS THE PROBLEM BUT THE MORNING AFTER THE PROBLEM IS STILL THERE I HOPE MS MACK'S ARTICLE WILL GIVE PARENTS PAUSE BEFORE THEY BLINDLY ACCEPT THE BRAINWASHING TECHNIQUES BEING EMPLOYED AGAINST THEIR CHILDREN THE ZEALOUSLY ENTHUSIASTIC PLANNERS OF THE NEW GOLDEN AGE ARE ABUSING THE FEAR OF DRUG ABUSE FOR THEIR OWN PURPOSES THEY WOULD HAVE US SACRIFICE PRECIOUS LIBERTY FOR AN ILLUSION OF SAFETY IN THE SINCERE BUT DISASTROUS BELIEF THAT THE MORALITY OF THE GOVERNMENT IS SOMEHOW BETTER THAN THAT OF THE INDIVIDUAL HUMAN BEINGS FROM WHOM IT DERIVES ITS SOVEREIGNTY THE POINT THAT MS MACK MISSES IN HER OTHERWISE INSIGHTFUL ANALYSIS IS THAT PART OF THE BIZARRE NATURE OF THE CURRICULUM SHE DESCRIBES IS A PREDICTABLE RESULT OF THE EQUALLY BIZARRE CONTRADICTION INHERENT IN A NATIONAL POLICY THAT SANCTIONS EVEN PROMOTES THE CONSUMPTION OF ALCOHOL WHILE SIMULTANEOUSLY DECRYING THE EVIL OF RECREATIONAL DRUG USE THE BEST WAY TO SAVE OUR CHILDREN FROM THE PERILS OF DRUG ABUSE IS TO PROVIDE THEM WITH AN EDUCATION THAT TEACHES THE FUNDAMENTALS OF REASON AND LOGICAL THOUGHT AND TO GUIDE THEIR DEVELOPMENT THROUGH OUR OWN EXAMPLE OF RESPONSIBLE BEHAVIOR I FEEL COMPELLED TO ADD AS AN ADDENDUM THAT I NEITHER SMOKE MARIJUANA NOR DRINK ALCOHOL AS A PARENT I HOPE TO DISCOURAGE MY OWN CHILDREN FROM EXPERIMENTATION WITH ANY RECREATIONAL DRUGS BUT AS A MATURE ADULT I CHALLENGE THE GOVERNMENT'S AUTHORITY TO INTRUDE INTO MY PRIVATE LIFE IN THIS RESPECT 9306300013 930630 INTERNATIONAL BEIJING FORCES CENTRAL BANK HEAD TO QUIT BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHINA'S OVERHEATED ECONOMY CLAIMED ITS FIRST POLITICAL VICTIM LI GUIXIAN GOVERNOR OF THE PEOPLE'S BANK OF CHINA THE CENTRAL BANK ACCORDING TO A PERSON IN BEIJING FAMILIAR WITH THE BANK MR LI WAS FORCED TO RESIGN TO TAKE RESPONSIBILITY FOR THE COUNTRY'S RUNAWAY MONEYSUPPLY GROWTH AND CHAOS IN THE FINANCIAL SYSTEM IN RECENT WEEKS THE 56YEAROLD MR LI HAD COME UNDER FIRE FOR HIS FAILURE TO CURB CHINA'S CREDIT EXPLOSION WHICH HAS CONTRIBUTED TO SOARING INFLATION AND FUELED THE PROPERTY BUBBLE IN THE COASTAL PROVINCES MEANWHILE CHINESE VICE PREMIER ZHU RONGJI REPORTEDLY SUMMONED PROVINCIAL GOVERNORS TO BEIJING FOR A CRISIS MEETING ON EXCESSIVE ECONOMIC GROWTH TA KUNG PAO AN AUTHORITATIVE PROBEIJING NEWSPAPER IN HONG KONG SAID MR ZHU WILL INSIST THAT PROVINCIAL LEADERS PUT A STOP TO PROPERTY AND SHARE SPECULATION EASY CREDIT AND OTHER FACTORS THAT BEIJING FEARS IS MAKING CHINA'S NATIONAL ECONOMY OVERHEAT THE DISMISSAL OF MR LI AS CENTRAL BANK GOVERNOR HASN'T BEEN MADE PUBLIC THOUGH RUMORS ABOUT HIS FATE HAVE SURFACED IN RECENT NEWSPAPER ACCOUNTS IN HONG KONG THE BANK SOURCE SAID CHINA'S STATE COUNCIL OR CABINET HASN'T DECIDED ON MR LI'S REPLACEMENT A FRONTRUNNER IS ZHOU ZHENGQING A DEPUTY GOVERNOR OF THE PEOPLE'S BANK BUT THE VICE PREMIER MAY TAKE THE CENTRAL BANK HELM HIMSELF WITH MR ZHOU AS HIS CHIEF LIEUTENANT RUNNING DAYTODAY AFFAIRS THE SOURCE ADDED MR LI'S REMOVAL CAME AMID TALKS AT THE HIGHEST LEVEL OF GOVERNMENT ON HOW TO COMBAT INFLATION AND STEM A BANKING CRISIS WHILE MR LI'S DISMISSAL SIGNALS BEIJING'S NEW RESOLVE TO COOL THE ECONOMY AND REVAMP THE TATTERED FINANCIAL SYSTEM IT ALSO HINTS AT THE POWER STRUGGLE AS POLITICIANS TRY TO ASSIGN BLAME FOR THE TROUBLED ECONOMY CHINA'S BANKING SYSTEM IS FACING SERIOUS CASH SHORTAGES MANY BANKS HAVE OVEREXTENDED THEMSELVES TO MEET CREDIT DEMANDS OF BOOMING CAPITAL INVESTMENT AND PROPERTY SPECULATION WITH FUNDS TIED UP IN PROPERTY PROJECTS IN THE COASTAL REGION BANKS ARE LEFT WITH LITTLE CASH TO PAY FARMERS OR LEND TO FACTORIES 9306300012 930630 HIS OWN IMPRINT GOLUB SOLIDIFIES HOLD AT AMERICAN EXPRESS BEGINS TO CHANGE FIRM HE BECOMES CHAIRMAN PICKS IDS BOSS AS PRESIDENT AND SLIPS HIS SHORT LEASH BLUNT HANDSON MANAGING BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WHEN HARVEY GOLUB WAS NAMED CHIEF EXECUTIVE OFFICER OF AMERICAN EXPRESS CO JUST FIVE MONTHS AGO HIS BOARD OF DIRECTORS PUT HIM ON A SHORT LEASH NOT ONLY WAS ONE OF THEIR OWN RICHARD FURLAUD NAMED CHAIRMAN BUT THE BOARD SET UP AN EXECUTIVE COMMITTEE OF DIRECTORS TO KEEP TABS ON ITS UNTESTED CEO IN EFFECT MR GOLUB WAS ON PROBATION YESTERDAY HIS PROBATION ENDED MR FURLAUD TURNED OVER HIS CHAIRMAN'S HAT TO MR GOLUB WHO REMAINS CHIEF EXECUTIVE ALLOWING HIM TO NAME A PRESIDENT OF HIS CHOICE THE NEW PRESIDENT WILL BE JEFFREY STIEFLER A 46YEAROLD STAR FROM THE COMPANY'S IDS FINANCIAL SERVICES UNIT THE MOVES COME JUST A MONTH AFTER THE BOARD QUIETLY CHANGED ITS EXECUTIVE COMMITTEE'S ROLE FROM THAT OF WATCHDOG OVER MR GOLUB TO SIMPLY ADVISER FOR CONTINGENCY PLANNING THE NAMING OF MR GOLUB FURTHER SHOWS THE END OF ANY RESERVATIONS THE BOARD INITIALLY HAD THE BOARD WOULD NOT HAVE DONE THIS UNLESS IT WAS THOROUGHLY SATISFIED WITH HARVEY SAYS MR FURLAUD THE COMPANY HAS MADE ENORMOUS PROGRESS IN THE LAST FEW MONTHS AND HARVEY HAS TREMENDOUS SUPPORT FROM THE BOARD SINCE MR GOLUB HIMSELF A FORMER HEAD OF IDS WON OUT AS SUCCESSOR TO JAMES D ROBINSON III AS AMERICAN EXPRESS'S CEO HE HAS TAKEN SEVERAL STEPS TO RESUSCITATE A COMPANY WHOSE FORTUNES WERE SLIPPING EVEN THOUGH HE HAD WARNED OBSERVERS NOT TO EXPECT QUICK MOVES HE ALMOST IMMEDIATELY AGREED TO SELL THE COMPANY'S SHEARSON BROKERAGE BUSINESS FOR MORE THAN 1 BILLION TO PRIMERICA CLEARED THE SALE OF A BIG STAKE IN FIRST DATA CORP AND LAUNCHED AN UNUSUALLY TOUGH AD CAMPAIGN ATTACKING RIVAL VISA HE ALSO FIRED A COPRESIDENT OF SHEARSON LEHMAN AND HAS APPEARED TO BE SPEEDING PLANS TO SELL OR SPIN OFF WHAT REMAINS OF IT THE LEHMAN BROTHERS INVESTMENT BANK THE DECISION TO BRING MR STIEFLER FROM IDS THOUGH SOMEWHAT SURPRISING SHOWS MR GOLUB FURTHER PUTTING HIS IMPRINT ON THE COMPANY AS WELL AS PLACING AT HIS RIGHT HAND AN EXECUTIVE HE CAN TRUST THE MOVE JUMPS MR STIEFLER AHEAD OF JONATHAN LINEN HEAD OF THE TRAVEL RELATED SERVICES UNIT ALTHOUGH MR LINEN CONTINUES TO REPORT TO MR GOLUB MR STIEFLER WILL ALSO JOIN THE BOARD THE CHANGES ARE EFFECTIVE AUG 1 A FORMER CITICORP BANKER AND NATIVE OF WHITE PLAINS NY MR STIEFLER WHO HAS A HARVARD MBA WAS BROUGHT IN BECAUSE MR GOLUB NEEDED THE ADDITIONAL STRENGTH AT THE TOP OF THE COMPANY MR GOLUB HAD BEEN CHIEF EXECUTIVE AND PRESIDENT BUT THE UPPER RANKS OF MANAGEMENT WERE THIN MR GOLUB BEGAN BROACHING THE IDEA WITH DIRECTORS OVER THE PAST MONTH WE NEEDED HELP AT THE CORPORATE LEVEL MR GOLUB SAYS AND HE HAS DONE EVERY JOB AT IDS WELL HE IS A HIGHPOWERED PIECE OF MACHINERY MR FURLAUD SAYS OF THE NEW PRESIDENT IDS WHICH IS A FINANCIAL PLANNING AND MONEYMANAGEMENT FIRM HAS BEEN GOING THROUGH A WRENCHING MAKEOVER IN WHICH A TEAM OF EXECUTIVES VISUALIZED WHAT A REMADE IDS WOULD LOOK LIKE IF STARTING FROM SCRATCH DUBBED IDS 1994 THE REORGANIZATION COULD SERVE AS A MODEL FOR THE PARENT'S BROAD EFFORT TO REENGINEER ITS OPERATIONS MR STIEFLER WILL DIRECTLY OVERSEE IDS AND THE AMERICAN EXPRESS BANK HE WILL ALSO TAKE DAYTODAY RESPONSIBILITY FOR THE AMERICAN EXPRESS REENGINEERING EFFORT WHICH HAS A GOAL OF REDUCING EXPENSES BY MORE THAN 1 BILLION HE WILL ALSO WORK ON THE INTEGRATION OF IDS TRAVEL RELATED SERVICES AND THE AMERICAN EXPRESS BANK INTO ONE FULLSERVICE PERSONALFINANCE COMPANY MR GOLUB SAID IN A RECENT SPEECH THAT IN THE FUTURE WE WILL BE LESS A COLLECTION OF LOCAL BUSINESSES AND MORE A GLOBAL ENTERPRISE THE 54YEAROLD MR GOLUB HAS HURRIED TO COME OUT FROM THE SHADOW OF HIS GENTEEL BUT SOMEWHAT ALOOF PREDECESSOR MR ROBINSON AND TO REENERGIZE THE COMPANY'S FLAGGING FRANCHISE DECISIVE AND HANDSON BUT OFTEN COLD AND ABRASIVE MR GOLUB IS BREAKING UP AMERICAN EXPRESS'S HAUGHTY CULTURE AND COZYING UP TO INVESTORS WALL STREET HAS REACTED POSITIVELY LIFTING THE STOCK TO 3150 FROM 23 JUST BEFORE MR GOLUB TOOK CHARGE ON FEB 1 FIRSTQUARTER EARNINGS WERE STRONGER THAN EXPECTED ON GAINS IN THE CORE CHARGECARD DIVISION HARVEY HAS HIT THE GROUND RUNNING SAYS JOHN J BYRNE A FORMER BOARD MEMBER WHOSE FUND AMERICAN ENTERPRISES BOUGHT FIVE MILLION AMERICAN EXPRESS SHARES DAYS AFTER MR ROBINSON STEPPED DOWN WHEN IT COMES TO MR GOLUB'S MOST IMPORTANT TASK SHORING UP THE CHARGECARD BUSINESS HE HAS TAKEN A MUCH MORE GRADUAL APPROACH THE PLAN AT THE TRS UNIT WHICH INCLUDES THE CARDS CALLS FOR CUTTING THOUSANDS OF JOBS SIGNING UP A MILLION NEW MERCHANTS AND STEMMING THE FLOW OF DESIRABLE CARDHOLDERS TO COMPETITORS THE PROCESS IS SUPPOSED TO TAKE UNTIL 1995 BUT SOME INVESTORS ARE CONCERNED THAT WITH COMPETITION SO INTENSE THE COMPANY MIGHT NOT HAVE THAT LONG SHOULD AMERICAN EXPRESS GO TO JENNY CRAIG ON AN ACCELERATED BASIS ASKS MARIO GABELLI AN INSTITUTIONAL SHAREHOLDER REFERRING TO THE WEIGHTLOSS SALON MR GABELLI MR BYRNE AND OTHER INVESTORS HAVE SUGGESTED THE COMPANY SELL OFF ALL ITS BUSINESSES BUT THE CHARGE CARDS MR GOLUB DOES NOT AGREE BELIEVING THAT IDS FOR INSTANCE WILL BE BETTER OFF UNDER AMERICAN EXPRESS AND WOULD NOT COMMAND A HIGH ENOUGH PRICE/EARNINGS MULTIPLE TO WARRANT A SPINOFF THE MERITS ARE NOT AS PERSUASIVE BUT THEIR POINT OF VIEW IS ENTIRELY RATIONAL MR GOLUB SAID IN AN INTERVIEW YESTERDAY BUT HE IS PARING THE CORPORATE STAFF AND HE HAS ADDED TO HIS OPTIONS FOR DEALING WITH LEHMAN BROTHERS AN INITIAL PUBLIC OFFERING TO RAISE ITS CAPITAL STRENGTH PREVIOUSLY HE HAD SAID HE COULD SELL A STAKE IN LEHMAN ONLY AFTER IT RAISED 400 MILLION IN NEW CAPITAL MR GOLUB'S PRESENCE AT THE TOP CLEARLY SETS A DIFFERENT TONE FOR AMERICAN EXPRESS UNLIKE MR ROBINSON THE SCION OF AN ATLANTA BANKING FAMILY HARVARD GRADUATE AND A MAN WHO RAISES HORSES FOR A HOBBY THE BURLY MR GOLUB WAS BORN IN BROOKLYN AND SCHOOLED AT NEW YORK UNIVERSITY AFTER FLUNKING OUT OF CORNELL HE TOOK A SYSTEMSMANAGEMENT JOB AT INTERNATIONAL BUSINESS MACHINES CORP BEFORE JOINING MCKINSEY & CO FROM WHICH HE WAS RECRUITED TO AMERICAN EXPRESS'S IDS UNIT IN 1984 MR GOLUB SPENDS FREE TIME BAKING BREADS OR BUILDING INTRICATE MODELS OF SAILING SHIPS WHERE MR ROBINSON WAS VIEWED AS GRACIOUS BUT DISTANT MR GOLUB IS MORE APPROACHABLE EVEN THOUGH HE SOMETIMES GIVES BLUNT OR PRICKLY RESPONSES HE DOESN'T SPEND A WHOLE LOT OF TIME TELLING YOU HOW WONDERFUL YOU ARE SAYS THOMAS RYDER EXECUTIVE VICE PRESIDENT IN CHARGE OF ESTABLISHMENT SERVICES HE'S NOT SHY YOU DON'T HAVE TROUBLE UNDERSTANDING WHAT HE MEANS HE SOMETIMES GOES TO THE EMPLOYEE CAFETERIA AND ALSO HOLDS BROWNBAG LUNCHES IN A CONFERENCE ROOM WITH EMPLOYEES HE SENDS LONG MEMOS IN ALL HIS DEALINGS MR GOLUB SEEMS INCLINED TO CONFRONT RATHER THAN SKIRT ISSUES THE FIRST JOB OF ANY LEADER IS TO DEFINE REALITY AND YOU CAN'T DO THAT IF YOU ARE OBSCURE HE SAYS BUT YOU CAN BE BLUNT WITHOUT BEING BRUTAL AND YOU CAN ALSO BE BLUNT AND STILL BE FAIR AT MCKINSEY HE WAS SO BLUNT THAT A MENTOR J MCLAIN STEWART HIRED MEDIA SPECIALIST ROGER AILES TO SMOOTH MR GOLUB'S MANNER WHEN MR RYDER WAS REORGANIZING THE STAFF THAT DEALS WITH MERCHANTS MR GOLUB GREW WEARY OF WAITING FOR RESULTS HARVEY SAID WATCHING US WAS LIKE WATCHING THE GESTATION OF AN ELEPHANT SAYS MR RYDER THERE IS NOT A DAY THAT GOES BY WHERE HARVEY IS NOT IMPATIENT MORE BETTER FASTER ARE THE WORDS I HEAR MOST FROM HARVEY ONCE WHEN MR GOLUB THOUGHT MR RYDER WAS SPEAKING WITHOUT ALL THE FACTS AT HIS COMMAND HE BROUGHT ME INTO THE CORNER AND SAID WHEN YOU TALK KNOW WHAT YOU'RE TALKING ABOUT' MR RYDER KEEPS A JOKE CAN OF BULLS REPELLENT IN HIS OFFICE TO REMIND HIMSELF MR GOLUB'S CHANGES ARE BEGINNING TO SHOW RESULTS CARD ACCEPTANCE BY MERCHANTS IS UP AMERICAN EXPRESS'S FABLED HAUGHTINESS IS LESS APPARENT THIS IS SO EVEN THOUGH MODESTY IS NOT NECESSARILY ONE OF MR GOLUB'S VIRTUES EVERY ONCE IN A WHILE YOU CAN CONVINCE HIM THAT HE'S WRONG SAYS FRANK SKILLERN WHO RUNS CONSUMER LENDING BUT NOT OFTEN MR GOLUB HAS TAKEN A MORE AGGRESSIVE POSTURE TOWARD COMPETITORS SOMETHING MR ROBINSON THOUGHT WAS UNBECOMING FOR THE OLDLINE COMPANY A NEWSPAPER AD IN MARCH LAMBASTED VISA FOR HIGH INTEREST RATES EVEN THOUGH AMERICAN EXPRESS'S OWN OPTIMA CREDIT CARD CAN CHARGE AS HIGH AS 18 FOR CERTAIN DELINQUENT BORROWERS THE AD LEFT A HALF PAGE BLANK FOR VISA TO RESPOND MR GOLUB HAS DISCARDED THE BYZANTINE WAY EMPLOYEES USED TO HOLD MEETINGS WHICH ENTAILED A DECK DESCRIBING WHAT MEETINGS WOULD BE ABOUT AND WHICH QUESTIONS WOULD BE ALLOWED HE HAS FORCED DISPARATE UNITS TO WORK TOGETHER TO CHANGE WHAT SOME SEE AS A STUFFY OLDBOYS' ATMOSPHERE HE HAS CREATED A SEMINAR TO TEACH EMPLOYEES WORK WITH THOSE OF A DIFFERENT RACE SEX OR ETHNICITY SEVENTY PERCENT OF THE PEOPLE THAT WORK AT AMERICAN EXPRESS ARE WOMEN MR GOLUB SAYS HOW THEY GET TREATED IN OUR ORGANIZATION IS CRITICAL OF BLACK EMPLOYEES HE SAYS BY THE TIME YOU GET TO WORK YOU'VE BEEN REMINDED TWO OR THREE TIMES THAT YOU'RE BLACK THAT MAKES THE JOB HARDER WITH A CHILD IN GRADE SCHOOL FROM HIS SECOND MARRIAGE MR GOLUB HAS TRIED TO SET A HUMANE PACE FOR HIMSELF MAKING IT HOME NEARLY EVERY NIGHT TO SADDLE RIVER NJ FROM HIS MANHATTAN OFFICE PERHAPS MOST IMPORTANT FOR AMERICAN EXPRESS'S RECOVERY IS MR GOLUB'S VOW TO BE MORE HANDSON THAN HIS PREDECESSOR WHO TENDED TO STAY ABOVE THE FRAY I WILL NOT SIMPLY PRESIDE OVER OUR BUSINESS UNITS MR GOLUB WROTE IN THE COMPANY'S ANNUAL REPORT I INTEND TO BE DEEPLY INVOLVED AND LEAD THEM FRED R BLEAKLEY CONTRIBUTED TO THIS ARTICLE 9306300011 930630 GM WILL BUILD VAN AT WENTZVILLE MO FLINT MICH TRUCK SITE IS STILL ON HOLD BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP TIED UP LOOSE ENDS AT ONE ASSEMBLY PLANT BUT HAS YET TO DECIDE THE FATE OF SEVERAL OTHER FACILITIES THAT ARE WITHOUT DEFINITE FUTURE PRODUCTS GM SAID ITS WENTZVILLE MO ASSEMBLY PLANT WILL BUILD ITS NEW FULLSIZE VAN BUT THE AUTO MAKER DIDN'T ANNOUNCE A REPLACEMENT PRODUCT FOR ITS FLINT MICH TRUCKASSEMBLY PLANT WHICH CURRENTLY BUILDS THE CHEVROLET AND GMC LARGE VANS GM TOLD WENTZVILLE LAST DECEMBER THAT IT WAS SHIFTING PRODUCTION OF THE BUICK PARK AVENUE TO ITS FLINT CARASSEMBLY PLANT LAST WEEK PRODUCTION OF THE PONTIAC BONNEVILLE WAS TRANSFERRED TO ORION MICH SLASHING WENTZVILLE'S HOURLY WORK FORCE IN HALF TO 2000 THE WENTZVILLE ANNOUNCEMENT MARKS A STEP BY GM TOWARD ADDRESSING UNRESOLVED ISSUES AT ITS ASSEMBLY PLANTS AS IT BEGINS CONTRACT NEGOTIATIONS WITH THE UNITED AUTO WORKERS UNION GM ANNOUNCED LAST YEAR THAT IT WOULD CLOSE 22 PLANTS BY THE END OF 1995 BUT IT ALSO LEFT AT LEAST FIVE OTHER ASSEMBLY PLANTS HANGING WITHOUT ANY DEFINITE PRODUCTS GM'S TRUCKASSEMBLY PLANT IN FLINT NOW JOINS THAT LIST WE CONTINUE TO LOOK FOR A PRODUCT FOR FLINT A GM SPOKESWOMAN SAID WE TOLD FLINT IN FEBRUARY THAT THEY WERE NO LONGER UNDER CONSIDERATION FOR BUILDING THE NEW FULLSIZE VAN CHARLIE COY PRESIDENT OF UAW LOCAL 659 REPRESENTING 4450 WORKERS AT THE FLINT TRUCK PLANT SAID GM INDICATED THAT WE WEREN'T SCHEDULED TO CLOSE BUT THAT NO PRODUCT HAD BEEN ASSIGNED TO THE PLANT MR COY SAID HE EXPECTS AN ANNOUNCEMENT EARLY NEXT YEAR IN THE MEANTIME FLINT UAW WORKERS WILL GET ADDED WORK FROM GM'S NEW CONSOLIDATED TRUCK FLEET WHICH WILL TRANSPORT PARTS TO GM'S PLANTS CURRENTLY 14 DIFFERENT SITES ARE RESPONSIBLE FOR TRANSPORTING PARTS AND MATERIALS TO GM'S MANUFACTURING AND ASSEMBLY FACILITIES SOME OF THE SITES USED PRIVATE CONTRACTORS TO TRANSPORT THE COMPONENTS THE CONSOLIDATION WILL IMPROVE EFFICIENCY AND POTENTIALLY ADD 200 UAWREPRESENTED JOBS SEPARATELY GM SAID IT WILL HAVE A NEWGENERATION CHEVROLET CORVETTE IN THE 1997 MODEL YEAR ENDING SPECULATION THAT THE AUTO MAKER WAS SCRAPPING THE UNPROFITABLE SPORTS CAR THE CORVETTE IS BUILT AT GM'S BOWLING GREEN OHIO ASSEMBLY PLANT GM OFFICIALS HOWEVER SAID NO DECISION HAS BEEN MADE TO BUILD THE NEW CORVETTE THERE 9306300010 930630 BUSINESS BRIEF EK CHOR CHINA MOTORCYCLE CO IN FIRST TRADING DAY SHARES ADD 15 ON OFFERING PRICE SHARES OF A CHINESE MOTORCYCLE CONCERN EK CHOR CHINA MOTORCYCLE CO RACED TO A PREMIUM IN THE FIRST DAY OF TRADING ON THE NEW YORK STOCK EXCHANGE SOLD AT 21 A SHARE THE STOCK OPENED AT 25 AND CLOSED AT 24125 ON VOLUME OF THREE MILLION SHARES UNDER THE SYMBOL EKC EK CHOR CHINA SOLD 44 MILLION SHARES IN AN OFFERING LED BY BEAR STEARNS & CO INCLUDING 36 MILLION NEW SHARES AND THE REMAINDER SOLD BY C P POKPHAND CO A BANGKOK THAILAND COMPANY THAT WILL CONTINUE TO HOLD A 72 INTEREST EK CHOR CHINA OWNS INTERESTS IN AND MANAGES FOUR CHINESE COMPANIES INVOLVED IN MAKING MOTORCYCLES OR COMPONENTS IT HAD SALES OF 220 MILLION IN 1992 9306300009 930630 PUSH ENDS FOR TRADE PACT WITH JAPAN PANEL CRITICIZES US EFFORT TO SET GOALS BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON US OFFICIALS SAID THEY ARE ESSENTIALLY SUSPENDING THEIR DRIVE FOR A MARKETOPENING TRADE FRAMEWORK WITH JAPAN AS A CARNEGIE ENDOWMENT PANEL CRITICIZED THE NUMERICAL GOALS THAT ARE A CORNERSTONE OF THE CLINTON ADMINISTRATION'S STRATEGY THE US OFFICIALS SAID THEY HOPE TO RESUME THE TALKS LATER THIS SUMMER AFTER A NEW JAPANESE PRIME MINISTER IS IN PLACE THE DECISION COMES AS HOPE FADES FOR FINISHING A PACT BEFORE NEXT WEEK'S MEETING IN TOKYO BETWEEN PRESIDENT CLINTON AND JAPANESE PRIME MINISTER KIICHI MIYAZAWA DURING THE SUMMIT OF THE GROUP OF SEVEN INDUSTRIAL NATIONS' LEADERS SENIOR CLINTON ADMINISTRATION OFFICIALS ARE TRYING TO LOWER THEIR EXPECTATIONS AND ARE BLAMING THE RECENT UNEXPECTED COLLAPSE OF THE MIYAZAWA GOVERNMENT FOR THE DISAPPOINTING OUTCOME OF THE TRADE TALKS ADMINISTRATION OFFICIALS SAID THE MEETING WILL FOCUS ON LESSCONTROVERSIAL GLOBAL ISSUES THE US HAD HOPED TO CAP MR CLINTON'S FIRST TRIP TO JAPAN WITH AMONG OTHER THINGS THE ANNOUNCEMENT OF A USJAPANESE AGENDA FOR TALKS AIMED AT OPENING JAPANESE MARKETS IN PARTICULAR INDUSTRIES INCLUDING NUMERICAL MEASURES FOR JUDGING PROGRESS THE STRATEGY OF QUANTITATIVE GOALS WON'T OPEN THE JAPANESE MARKET CONCLUDED THE PANEL COMMISSIONED BY THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE A WASHINGTON THINK TANK IN ITS STUDY THE PANEL WAS CAREFUL TO AVOID ATTACKING THE CLINTON ADMINISTRATION HEADON BUT THE CRITICISM IS PARTICULARLY TIMELY BECAUSE THE ADMINISTRATION'S STRATEGY HAS PROVEN TO BE A STUMBLING BLOCK IN TALKS BETWEEN THE US AND TOKYO US TRADE NEGOTIATORS HAVE PRESSED THE JAPANESE GOVERNMENT TO AGREE TO STATISTICAL MEASURES FOR ITS IMPORTS IN SECTORS SUCH AS AUTOS AND AUTO PARTS BUT DURING TALKS THIS WEEK IN TOKYO THE JAPANESE SIDE RENOUNCED SUCH BENCHMARKS AND THE SOCALLED FRAMEWORK NEGOTIATIONS ENDED UNSUCCESSFULLY IN DISMISSING THE STRATEGY THE REPORT CONCLUDES AS A GENERAL MATTER WE DO NOT BELIEVE THAT THE SETTING OF NUMERICAL TARGETS IS A USEFUL INSTRUMENT OF POLICY IN OUR DEALINGS WITH JAPAN IT ARGUES THAT SUCH A TECHNIQUE GROSSLY EXAGGERATES THE ABILITY OF GOVERNMENTS TO CONTROL THE OUTCOME OF COMPLEX ECONOMIC FORCES AND RUNS THE RISK OF OPENING A PANDORA'S BOX OF DEMANDS FROM US COMPANIES PANEL CHAIRMAN BARRY BOSWORTH A SENIOR FELLOW AT THE BROOKINGS INSTITUTION ANOTHER WASHINGTON THINK TANK SAID THERE IS A SERIOUS ASYMMETRY OF ACCESS FOR US COMPANIES TRYING TO DO BUSINESS IN JAPAN COMPARED WITH THEIR JAPANESE COUNTERPARTS IN THE US BUT HE SAID THE BEST WAY TO OPEN JAPAN'S MARKET WOULD BE TO PRESS FOR FISCAL STIMULUS TO BOOST DOMESTIC CONSUMPTION AND IMPORTS IN JAPAN NOT NUMERICAL MEASURES MUCH OF THE INSPIRATION FOR NUMERICAL TARGETS COMES FROM A 1990 SEMICONDUCTOR ACCORD UNDER WHICH JAPAN WAS SUPPOSED TO IMPORT 20 OF ITS COMPUTER CHIPS BY 1992 OR FACE SANCTIONS STARTING WITH THE FOURTH QUARTER OF 1992 AND CONTINUING WITH THE FIRST QUARTER OF 1993 JAPAN HAS IMPORTED FOREIGN COMPUTER CHIPS AROUND THAT TARGET PERCENTAGE AND CLINTON ADMINISTRATION OFFICIALS POINT TO THE ACCORD AS AN EXAMPLE OF WHAT THEY WANT TO ACHIEVE IN OTHER SECTORS JULIUS KATZ A FORMER US TRADE NEGOTIATOR AND A MEMBER OF THE CARNEGIE STUDY GROUP WARNED HOWEVER THAT THE SEMICONDUCTOR ACCORD ISN'T THE MOTHER OF ALL TARGETED AGREEMENTS AND SAID I DON'T CONSIDER THAT THE ROLE MODEL FOR OTHER SECTORAL INTERESTS IT'S NOT A VERY USEFUL APPROACH MR KATZ SAID THE REPORT IS THE RESULT OF MEETINGS WITH 32 PEOPLE CONSIDERED TO BE TRADE AND FOREIGNPOLICY EXPERTS INCLUDING KEY CLINTON ADMINISTRATION OFFICIALS WINSTON LORD ASSISTANT SECRETARY OF STATE FOR EAST ASIAN AND PACIFIC AFFAIRS AND MORTON HALPERIN ASSISTANT SECRETARYDESIGNATE OF DEFENSE FOR DEMOCRACY AND PEACEKEEPING THOSE TWO OFFICIALS AND EIGHT OTHER PANEL MEMBERS DIDN'T HOWEVER ENDORSE THE STUDY'S REPORT BECAUSE OF THEIR JOBS OR DIFFERENCES WITH THE REPORT'S CONCLUSIONS STILL THE CONCLUSIONS ARE ALL THE MORE SURPRISING BECAUSE THE PANEL INCLUDES SOME PEOPLE WHO EMBRACE A GETTOUGH POLICY TOWARD JAPAN CLYDE PRESTOWITZ PRESIDENT OF ECONOMIC STRATEGY INSTITUTE A WASHINGTON CONSULTING FIRM AND DEREK SHEARER A CLINTON PAL AND FORMER COMMERCE DEPARTMENT OFFICIAL WHO NOW ADVISES THE DEPARTMENT BOTH ENDORSED THE REPORT CLYDE PRESTOWITZ OF THE ECONOMIC STRATEGY INSTITUTE DIDN'T ENDORSE A CARNEGIE ENDOWMENT PANEL'S CRITICISM OF NUMERICAL TARGETS IN TRADE POLICY BASED ON INFORMATION PROVIDED BY THE CARNEGIE ENDOWMENT AN ARTICLE IN SOME OF LAST WEDNESDAY'S EDITIONS INCORRECTLY SAID THAT MR PRESTOWITZ SUPPORTED THAT FINDING THE SAME ARTICLE ALSO INCORRECTLY IDENTIFIED BARRY BOSWORTH OF THE BROOKINGS INSTITUTION AS THE PANEL'S CHAIRMAN HE IS A MEMBER OF THE PANEL BUT THE CHAIRMAN IS STEPHEN BOSWORTH OF THE USJAPAN FOUNDATION 9306300008 930630 WHO'S NEWS IRIMAJIRI REVEALS PLANS FOR SEGA'S GROWTH AS HE TAKES CHARGE TOKYO SEGA ENTERPRISES LTD'S NEW EXECUTIVE VICE PRESIDENT SKETCHED OUT HIS PLANS FOR THE JAPANESE VIDEOGAME MAKER IN A NEWS CONFERENCE MARKING HIS FIRST DAY ON THE JOB SHOICHIRO IRIMAJIRI A FORMER HONDA MOTOR CO OFFICIAL AND ONE OF JAPAN'S BESTKNOWN EXECUTIVES SAID HE WANTS TO STRENGTHEN THE LINKS BETWEEN SEGA'S DEVELOPMENT PRODUCTION AND MARKETING OPERATIONS IN THE LONG TERM HE SAID HE WANTS TO HELP PLOT THE JAPANESE VIDEOGAME MAKER'S ALLIANCES WITH OTHER COMPANIES IN THE GROWING FIELD OF MULTIMEDIA WHICH LINKS COMPUTING COMMUNICATIONS AND CONSUMER ELECTRONICS THE 53YEAROLD MR IRIMAJIRI IS BACK IN THE SADDLE IN CORPORATE JAPAN MORE THAN A YEAR AFTER ABRUPTLY RESIGNING FROM HONDA AT THE TIME OF HIS DEPARTURE FROM THE AUTO MAKER HE CITED ILL HEALTH AND STRESS BUT HE ALSO EXPRESSED FRUSTRATION WITH THE PACE OF CHANGE AT THE AUTO MAKER IN AN INTERVIEW WITH A LOCAL NEWSPAPER MR IRIMAJIRI WHO MADE A NAME FOR HIMSELF IN THE US AS THE CHARISMATIC PRESIDENT OF HONDA'S US CARMAKING OPERATIONS IN THE 1980S WAS ONCE CONSIDERED A LEADING CANDIDATE TO RUN THE PARENT COMPANY THE END OF HIS HIATUS CAME IN MAY WHEN SEGA ANNOUNCED THAT MR IRIMAJIRI WOULD BECOME ITS NEW EXECUTIVE VICE PRESIDENT IN CHARGE OF MANUFACTURING AND DEVELOPMENT SEGA WHICH HAS IN A FEW SHORT YEARS EMERGED AS ONE OF JAPAN'S MOST PROFITABLE COMPANIES HAS BEEN TRYING TO BRING IN SENIOR MANAGERIAL TALENT TO LEAD ITS YOUNG STAFF THE MAKER OF VIDEOGAME SOFTWARE AND MACHINES HAD SALES OF 3469 BILLION YEN 327 BILLION IN THE YEAR ENDED MARCH 31 UP FOURFOLD FROM 787 BILLION YEN THREE YEARS EARLIER 9306300007 930630 BUSINESS BRIEF PILKINGTON PLC LIBBEYOWENSFORD UNIT REGAINS CONTROL OF RECORDS LIBBEYOWENSFORD CO A UNIT OF BRITAIN'S PILKINGTON PLC SAID IT REGAINED CONTROL OF BUSINESS RECORDS AND IS ABLE TO PROCEED WITH DAYTODAY BUSINESS AS USUAL THE TOLEDO OHIO GLASS MAKER HAD SAID ITS BUSINESS WAS IN DANGER OF BEING IRREPARABLY HARMED BECAUSE ITS BUSINESS RECORDS ARE BEING MAINTAINED BY A DATAPROCESSING COMPANY IT CHARGES WAS CREATED AS PART OF A FRAUD AND KICKBACK SCHEME SEPARATELY PILKINGTON SAID IT IS MOVING ONE OF ITS SENIOR EXECUTIVES PETER GRUNWELL 56 YEARS OLD TO TOLEDO WHERE HE WILL ASSUME THE NEWLY CREATED POSITION OF DIRECTOR OF PILKINGTON'S ACTIVITIES IN NORTH AND SOUTH AMERICA MR GRUNWELL'S MOVE TO TOLEDO FOLLOWS THE OUSTER LAST MONTH OF RONALD W SKEDDLE CHIEF EXECUTIVE OFFICER AT THE GLASS MAKER AND OF TWO EXECUTIVE VICE PRESIDENTS WHO HAVE BEEN ACCUSED OF ORCHESTRATING THE KICKBACK SCHEME LIBBEYOWENSFORD IS SUING COMPUTER TECHNOLOGY MANAGEMENT INC AND SEVERAL OTHER BUSINESSES CHARGING THEY PAID KICKBACKS TO THE THREE DISLOYAL LOF OFFICERS 9306300006 930630 WHO'S NEWS METHODE ELECTRONICS INC METHODE ELECTRONICS INC CHICAGO JAMES W MCGINLEY 38 YEARS OLD WAS ELECTED A DIRECTOR OF THIS ELECTRONICS CONCERN HIS APPOINTMENT INCREASED THE BOARD BY ONE TO NINE MEMBERS MR MCGINLEY IS EXECUTIVE VICE PRESIDENT OF THE COMPANY'S FIBER OPTIC GROUP 9306300005 930630 TECHNOLOGY IN THE LAB BELL LABS GETS THE DIRT ON OPTICAL CHIPS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL MURRAY HILL NJ TIMOTHY D HARRIS IS AMERICAN TELEPHONE & TELEGRAPH CO'S MR CLEAN BUT HIS INVENTIONS HAVE NOTHING IN COMMON WITH THE SMELLY STUFF KEPT IN CLEANING CLOSETS DR HARRIS AN APPLIED PHYSICIST AND CHEMIST AT AT&T BELL LABORATORIES SEARCHES FOR THE IMPURITIES IN CRYSTALS USED FOR MAKING ELECTRONIC CHIPS THAT'S THE FIRST STEP IN DESIGNING PROCESSES FOR REMOVING IMPURITIES THAT AREN'T WANTED IT'S CRITICAL WORK THAT KEEPS BELL LABS ON THE CUTTING EDGE HIS CURRENT PROJECT COULD MAKE AT&T THE FIRST MASS PRODUCER OF A REVOLUTIONARY NEW OPTICAL COMMUNICATIONS CHIP MADE FROM INDIUM PHOSPHIDE IMPURITIES ARE MICROSCOPIC SUBSTANCES IN CRYSTALS THAT CAN ALTER A CHIP'S ELECTRONIC PERFORMANCE FOR BETTER OR WORSE FOR EXAMPLE IF A PURE SILICON CRYSTAL IS IMPREGNATED WITH AN IMPURITY SUCH AS ARSENIC ITS ELECTRONIC PROPERTIES WILL CHANGE IN A USEFUL WAY BUT AN UNWANTED IMPURITY COULD RENDER THE SAME CRYSTAL USELESS THERE'S GOOD DIRT AND BAD DIRT SAYS DR HARRIS WHO DIGS UP HIS DIRT BY USING LASERS A CRYOGENIC CHAMBER WITH A POWERFUL SUPERCONDUCTING MAGNET KEPT AT TEMPERATURES NEAR ABSOLUTE ZERO AND A SENSITIVE CAMERA DESIGNED BY ASTRONOMERS WITH HIS ARGON AND SAPPHIRE LASERS HUMMING DR HARRIS SHINES INTENSE LIGHT THROUGH THE INDIUM PHOSPHIDE CRYSTALS AND MEASURES THE DIFFERENCES IN COLOR PATTERNS CAUSED BY EACH IMPURITY HIS SUPERCONDUCTING MAGNET SEPARATES OTHERWISE IDENTICAL COLORS EMITTED BY SUCH DIRT AS SULFUR SILICON AND GERMANIUM DR HARRIS THEN FEEDS HIS COLOR PATTERNS INTO A PERSONAL COMPUTER TO MAP THE DIFFERENT COLORS AND ASSIGN A NUMBER TO EACH VARIATION I'M PHOTOGRAPHING RAINBOWS HE SAYS GRINNING A LITTLE LIKE RAY BOLGER THE SCARECROW IN THE WIZARD OF OZ THE POWER OF THE SUPERCONDUCTING MAGNET IS AWESOME VISITORS MUST SURRENDER THEIR ELECTRONIC BANK CARDS AND OTHER GIZMOS OR THE MAGNET WILL ERASE THEM PEOPLE WITH PACEMAKERS ARE BARRED FROM THE ROOM DR HARRIS SAYS THE MAGNET AT FULL POWER WILL YANK AN ADULT ACROSS THE ROOM BY HIS CAR KEYS TELL HIM ABOUT THE FLYING WRENCH TELL HIM ABOUT THE FLYING WRENCH IMPLORES A LAUGHING COLLEAGUE NO WAY SAYS DR HARRIS THERE ARE OTHER HAZARDS WHILE A VISITOR LOOKED ON RECENTLY THE SUPERCONDUCTING MAGNET OVERHEATED SOME LIQUID HELIUM CAUSING THE EXPERIMENT TO EXPLODE IN A ROARING BUBBLING CLOUD SENDING EVERYONE OUT THE DOOR IN A MAD DASH NO SWEAT A MINUTE LATER THE LANKY DR HARRIS WHO WEARS A LUAU SHIRT AND DECK SHOES OPENS THE DOOR A CRACK AND PEERS IN PIPES AT THE TOP OF THE CHAMBER HISS EVAPORATING HELIUM HE REENTERS AND POPS ON A CD OF BOB MARLEY BAWLING NO WOMAN NO CRY THE REGGAE RHYTHMS SOP UP THE TENSION IN THE ROOM AS HE CHECKS THE SETTING ON HIS LASERS AND MIRRORS THEN HE SLOWLY REFILLS THE HISSING HELIUMFILLED TANK TO CONTINUE EXPERIMENTING THIS HAS ONLY HAPPENED ONCE BEFORE HE SAYS AIMING A HIGHPOWERED HEAT GUN AT A LOCKED VALVE THAT HAD TURNED WHITE FROM THE BLAST'S HELIUM FROST IN THE GRAND SCHEME OF SCIENCE THIS IS THE DIRTY WORK HE ADDS DR HARRIS 41 YEARS OLD HAS BEEN GETTING HIS HANDS DIRTY AT BELL LABS SINCE 1978 WHEN HE STARTED WORKING AFTER GETTING A CHEMISTRY PHD AT PURDUE UNIVERSITY BUT THERE WERE NO DETAILED COLOR MAPS OF INDIUM PHOSPHIDE CRYSTALS TO GUIDE MANUFACTURERS ON ITS MYRIAD IMPURITIES TWO YEARS AGO DR HARRIS WHO HELPED INVENT A PURIFICATION PROCESS FOR GALLIUM ARSENIDE CRYSTALS IN THE MID1980S SET OUT TO DO THE SAME FOR INDIUM PHOSPHIDE SCIENTISTS HAVE BEEN USING SUCH COLOR MAPS AND PURIFICATION PROCESSES SINCE EARLY TRANSISTORS WERE MADE FROM SILICON CRYSTALS LONG BEFORE GALLIUM ARSENIDE AND INDIUM PHOSPHIDE USING MAPS AS THEIR GUIDE MANUFACTURERS ADD CERTAIN IMPURITIES KNOWN AS DOPANTS TO MAKE CHIPS PERFORM VARIOUS FUNCTIONS TAKE A SIMPLE DIODE INSTALLED IN COMPUTER OR COMMUNICATIONS GEAR IT'S A SILICONBASED CHIP THAT ACTS AS A VALVE FOR SENDING ELECTRONS OR ELECTRICAL CURRENT IN ONE DIRECTION TO GIVE THE DIODE POSITIVE AND NEGATIVE FLOW CHARACTERISTICS A MANUFACTURER IMPREGNATES THE CHIP WITH IMPURITIES A COMMON METHOD IS TO BOMBARD THE TOP OF THE SILICON CHIP WITH A PINCH OF BORON GIVING IT A POSITIVE CHARGE THE BOTTOM HALF OF THE CHIP IS THEN SHOT WITH ARSENIC FOR A NEGATIVE CURRENT FLOW TOGETHER THESE HALVES FORM WHAT'S CALLED A P/N JUNCTION WHICH IS USED AS A MECHANISM FOR STORING MEMORY IN CHIPS SILICON IS JUST A ROCK SAYS DR HARRIS ONLY WHEN YOU ADD SOME N HERE AND P THERE DO YOU MAKE A DEVICE YOU WANT TO OWN DR HARRIS SAYS HE HAS FINISHED MAPPING ABOUT 70 OF INDIUM PHOSPHIDE'S P IMPURITIES AND ABOUT 20 OF ITS N IMPURITIES HE WORKS SOMETIMES LATE INTO THE NIGHT TO HAVE EVERYTHING FINISHED BY DECEMBER IN TIME FOR THE BIG MATERIALS RESEARCH SOCIETY MEETING WHERE HE HOPES TO WOW COMPETITIVE RESEARCHERS WITH HIS WORK WHILE NOT A SINGLE US CHIP SUPPLIER HAS EXPRESSED INTEREST DR HARRIS SAYS JAPAN'S NEC CORP AND FUJITSU LTD CONSTANTLY INQUIRE ABOUT HIS PROGRESS AND ARE PURSUING SIMILAR PROJECTS AT&T IS SO AWARE OF THE POTENTIAL RIVALRY THAT IT KEEPS DR HARRIS ON A SHORT LEASH WHEN IT COMES TO TRADING IDEAS AND MATERIALS WITH SCIENTISTS AT JAPANESE COMPANIES THE PURE INDIUM PHOSPHIDE CRYSTAL HE USES IN HIS EXPERIMENT CAME FROM A FRIEND AT BELL COMMUNICATIONS RESEARCH INC THE LAB OWNED BY THE SEVEN REGIONAL BELL COMPANIES HE SAYS HE'LL FIND SOMETHING TO TRADE HIS FRIEND IN RETURN MY BOSS DOESN'T GET MAD IF I TRADE WITH BELLCORE SINCE BELLCORE'S OUR CUSTOMER FOR AT&T NETWORK EQUIPMENT HE SAYS BUT HE SAYS SUCH CONTACT WITH JAPANESE SUPPLIERS IS FORBIDDEN THAT WOULD BE TRADING WITH THE ENEMY HE SAYS 9306300004 930630 BUSINESS BRIEF DAMON TO HOLD TALKS ON CORNING OFFER RIVAL BIDDER NATIONAL HEALTH IS MUM DAMON CORP SAID IT WILL HOLD TALKS WITH SUITOR CORNING INC AS RIVAL BIDDER NATIONAL HEALTH LABORATORIES INC REMAINED SILENT ON WHETHER IT WOULD MAKE A COUNTEROFFER ON MONDAY CORNING OFFERED TO BUY DAMON FOR 23 A SHARE OR 3712 MILLION JUST DAYS AFTER THE NEEDHAM HEIGHTS MASS LABORATORY CONCERN AGREED TO BE ACQUIRED BY NATIONAL HEALTH LABS FOR 16 A SHARE CORNING A SPECIALTY MATERIALS TELECOMMUNICATIONS AND LAB SERVICES CONCERN BASED IN CORNING NY HOPES TO CONSOLIDATE ITS METPATH CLINICAL LABORATORIES WITH DAMON'S LABS IN ADDITION TO THE PURCHASE PRICE CORNING WOULD ASSUME 204 MILLION IN DEBT AND OBLIGATIONS FOR STOCK OPTIONS OUTSTANDING THAT FIGURE INCLUDES 18 MILLION THAT CORNING WOULD PAY FOR DAMON TO TERMINATE ITS AGREEMENT WITH NATIONAL HEALTH NATIONAL HEALTH WHICH IS 22OWNED BY NEW YORK INVESTOR RONALD O PERELMAN SAID IT'S STILL EVALUATING OUR OPTIONS BUT DECLINED TO ELABORATE ONE ANALYST OPPENHEIMER & CO'S GLENN REICINS SAYS NATIONAL HAS ENOUGH CASH TO MAKE A COUNTEROFFER BUT IT MIGHT NOT WANT TO BECAUSE IT WOULDN'T SAVE AS MUCH MONEY AS CORNING WOULD BY CONSOLIDATING ITS OPERATIONS WITH DAMON'S NATIONAL'S LABS OVERLAP MORE WITH CORNING'S THAN WITH DAMON'S IN TRADING ON THE NEW YORK STOCK EXCHANGE CORNING FELL 75 CENTS TO 34 DAMON WAS UNCHANGED AT 22625 AND NATIONAL HEALTH WAS UNCHANGED AT 18 ANALYSTS WERE PUZZLED ABOUT WHY DAMON JUMPED ON NATIONAL HEALTH'S BID EVEN AS CORNING WAS WAITING IN THE WINGS SECURITIES AND EXCHANGE COMMISSION FILINGS BY DAMON SHOW THAT BESIDES REFUSING TO NAME A PRICE CORNING LOST OUT FOR INSISTING ON BEING DAMON'S ONLY BIDDER WITHOUT SPECIFICS ON CORNING'S OFFER DAMON'S CHAIRMAN AND CHIEF EXECUTIVE ROBERT L ROSEN DECIDED TO PLAY HARDBALL SAYS ONE PERSON FAMILIAR WITH THE NEGOTIATIONS HIS DECISION TO ACCEPT NATIONAL'S OFFER APPARENTLY GOT THEM CORNING OFF THE DIME THE PERSON SAYS SEPARATELY CORNING REPORTED SECONDQUARTER EARNINGS THAT WERE SLIGHTLY BELOW ANALYSTS' EXPECTATIONS FOR THE 12 WEEKS ENDED JUNE 20 NET INCOME WAS 898 MILLION OR 47 CENTS A SHARE ON REVENUE OF 9128 MILLION THAT COMPARES WITH NET OF 672 MILLION OR 35 CENTS A SHARE AFTER A 163 MILLION CHARGE FOR CORNING'S SHARE OF DOW CORNING INC'S COSTS OF BREAST IMPLANT LITIGATION DOW CORNING IS A 5050 JOINT VENTURE BETWEEN CORNING AND DOW CHEMICAL CO REVENUE FOR THE YEAREARLIER QUARTER WERE 8795 MILLION 9306300003 930630 CORRECTIONS & AMPLIFICATIONS G MICHAEL BOSWELL IS THE FORMER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF SUNSHINE MINING CO HE WAS INCORRECTLY IDENTIFIED AS THE CURRENT HOLDER OF THOSE POSTS IN A JUNE 18 ARTICLE SURVEYING BUSINESS EXECUTIVES ABOUT PRESIDENT CLINTON'S PERFORMANCE JOHN S SIMKO THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE SAID THAT MR BOSWELL'S VIEWS DON'T REFLECT THE VIEWS OF PRESENT MANAGEMENT REP JOHN LEWIS SUPPORTED THE RECENT DECISION OF THE CONGRESSIONAL BLACK CAUCUS TO OPPOSE THE NORTH AMERICAN FREE TRADE AGREEMENT IN A PAGEONE ARTICLE YESTERDAY IT WAS INCORRECTLY STATED THAT THE GEORGIA DEMOCRAT OPPOSED THE CAUCUS'S DECISION BASED ON INFORMATION SUPPLIED BY THE BLACK CAUCUS CHAIRMAN'S OFFICE A USFRANCE TREATY ON FOREIGN WORKERS WILL CONTINUE IN FORCE EVEN THOUGH US WORKERS WHO HAVE BEEN IN FRANCE FOR THE PAST FIVE YEARS WILL LOSE THEIR EXEMPTION TOMORROW FROM FRENCH SOCIALSECURITY TAXES YESTERDAY'S LABOR LETTER INCORRECTLY SAID THE TREATY WAS EXPIRING BLUE BONNET MARGARINE IS MADE BY NABISCO FOODS GROUP A UNIT OF RJR NABISCO HOLDINGS CORP IN A CHART ON MARGARINE SALES ACCOMPANYING A MARKETSCAN ARTICLE THURSDAY BLUE BONNET'S PARENT WAS MISIDENTIFIED AS KRAFT GENERAL FOODS A UNIT OF PHILIP MORRIS COS 9306300002 930630 AGENCY'S STORAGE OF NUCLEAR WASTES IN IDAHO IS BARRED BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE IN IDAHO BARRED THE DEPARTMENT OF ENERGY FROM SHIPPING RADIOACTIVE WASTES TO AN IDAHO NUCLEAR DUMP SAYING THE AGENCY BROKE ENVIRONMENTAL LAWS AND MAY HAVE LIED IN COURT THE RULING RAISES MAJOR PROBLEMS FOR THE AGENCY AND THE US MILITARY CURRENTLY THE IDAHO STORAGE FACILITY KNOWN AS THE IDAHO NUCLEAR ENGINEERING LABORATORY OR INEL IS THE ONLY PLACE RECEIVING SPENTFUEL RODS FROM THE NAVY'S NUCLEARPOWERED SHIPS AND SUBMARINES THE DOE HAS SAID THE IDAHO FACILITY IS THE ONLY SITE SUITABLE FOR STORING THE FUEL RODS RAISING QUESTIONS ABOUT WHERE THE NAVY WILL STASH THE RADIOACTIVE RODS THE RULING BY BOISEBASED FEDERAL JUDGE HAROLD RYAN STEMS FROM A DISPUTE THAT DATES BACK YEARS BETWEEN THE DOE AND IDAHO JUDGE RYAN RULED THAT THE DOE VIOLATED THE NATIONAL ENVIRONMENTAL POLICY ACT BY NOT PROPERLY EVALUATING THE LEVEL OF ENVIRONMENTAL RISK PRESENTED BY ITS PLAN TO STORE THE FUEL RODS THE JUDGE ORDERED THE AGENCY TO CONDUCT A FULL ENVIRONMENTAL REVIEW AND PREPARE AN ENVIRONMENTAL IMPACT STATEMENT THAT'S EXPECTED TO TAKE AT LEAST TWO YEARS IN THE MEANTIME THE AGENCY IS ENJOINED FROM SHIPPING ANY NUCLEAR WASTES TO THE DUMP JUDGE RYAN ALSO CHASTISED THE AGENCY FOR APPARENTLY LYING TO THE COURT WHEN IT CONTENDED THAT THERE WAS NO OTHER PLACE FOR THE RODS TO BE STORED IN FACT DOCUMENTS PRODUCED AT TRIAL SHOWED THAT THE OWNER OF A PLANT IN FORT ST VRAIN COLO HAD RECENTLY CONSTRUCTED A FACILITY THERE DESIGNED TO STORE SPENTFUEL RODS NEITHER THE DOE NOR THE NAVY COULD BE REACHED TO COMMENT ON THE RULING 9306300001 930611 LAW AS REMEDY FOR CERTAIN BROKEN PROMISES PROFESSOR PROPOSES SEXUAL FRAUD' SUITS BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL SEXUAL PROMISES LIKE POLITICAL ONES HAVE A TENDENCY TO BE BROKEN VICTIMS OF BEDROOM LIES AND FALSE PROMISES HAVE TRADITIONALLY ACCEPTED THE CONSEQUENCES BUT INCREASINGLY THEY ARE BRINGING CASES TO COURT THAT INVOLVE SEXUALLY TRANSMITTED DISEASES BIRTHCONTROL USE STERILITY AND EVEN SEXUAL REJECTION THE SUITS OFTEN FACE DAUNTING OBSTACLES BECAUSE NO LAWS DIRECTLY REGULATE THE INTIMATE DECLARATIONS OF COUPLES EVEN WHEN ONE OF THEM IS LYING PLAINTIFFS' LAWYERS TYPICALLY TRY TO TRANSLATE PRINCIPLES FROM COMMERCIAL LAW OR PERSONALINJURY LITIGATION INTO THE SEXUAL ARENA BUT THESE EFFORTS MEET WITH ONLY MIXED SUCCESS SOMETIMES JUDGES ALLOW SUCH LAWSUITS BASED ON GENERAL ALLEGATIONS OF MISREPRESENTATION NEGLIGENCE FRAUD BATTERY OR DECEIT OTHER TIMES THEY DON'T NOW HOWEVER A LAW PROFESSOR FROM NORTHWESTERN UNIVERSITY SCHOOL OF LAW IS RECOMMENDING THAT JUDGES ADOPT A SEPARATE NEW LEGAL THEORY FOR SEXUALDECEPTION LAWSUITS THAT ACKNOWLEDGES THEIR RIGHTFUL PLACE IN THE COURT SYSTEM THE PROPOSED LEGAL ACTION WOULD BE FOR SEXUAL FRAUD WHICH THE PROFESSOR JANE E LARSON DEFINES AS AN ACT OF INTENTIONAL HARMFUL MISREPRESENTATION MADE FOR THE PURPOSE OF GAINING ANOTHER'S CONSENT TO SEXUAL RELATIONS PROF LARSON WHO SPELLED OUT HER THEORY IN A RECENT ISSUE OF COLUMBIA UNIVERSITY'S LAW REVIEW SAYS THE LAW AS IT STANDS IS INADEQUATE BECAUSE IT PERMITS MORE PREDATORY BEHAVIOR IN THE SEXUAL MARKETPLACE THAN WE DO IN THE BUSINESS WORLD YOU CAN DO THINGS TO GET PEOPLE TO CONSENT TO SEX THAT YOU CANNOT DO TO GET THEIR MONEY A LEGAL ARGUMENT SPECIFICALLY TAILORED TO ALLEGATIONS OF SEXUAL DECEPTION WOULD MAKE IT SIMPLER FOR VICTIMS TO BRING LAWSUITS BROADEN THE KINDS OF DISPUTES THEY CAN TAKE TO COURT AND MAKE IT EASIER FOR VICTIMS TO COLLECT DAMAGES FOR EMOTIONAL HARM SHE SAYS PROF LARSON ANTICIPATES THAT HER ARTICLE MAY ENCOURAGE LAWYERS TO START MAKING CLAIMS OF SEXUAL FRAUD IN SEXUALDECEPTION LAWSUITS THEN SHE HOPES THE RITUAL OF CREATING NEW LAW CAN BEGIN SOME JUDGE WILL CITE HER ARTICLE AS AUTHORITY FOR ADOPTING THE THEORY THEN OTHER JUDGES WILL CITE THE FIRST JUDGE'S DECISION AS PRECEDENT AND PRETTY SOON ANY NEW COURT THAT CONSIDERS THE ISSUE WILL HAVE PAGES OF CITATIONS TO VERIFY THAT SEXUAL FRAUD HAS BECOME PART OF THE JUDGEMADE OR COMMON LAW OF THE LAND THE PROCESS PROF LARSON SEEKS COULD TAKE YEARS HOWEVER AND COULD BE DERAILED AT ANY TIME IF APPEALS COURTS REJECT THE THEORY MEANWHILE LAWYERS ARE RELYING ON LEGAL CLAIMS THAT OFTEN SEEM MORE APPROPRIATE IN SAVINGSANDLOAN OR REALESTATE CASES THAN IN DISPUTES OVER WHETHER LOVERS HAVE LIED TO EACH OTHER LAWSUITS ALLEGING THAT A SEX PARTNER LIED ABOUT A SEXUALLY TRANSMITTED DISEASE AND THUS ENGAGED IN NEGLIGENT OR FRAUDULENT BEHAVIOR ARE THE MOST COMMON OF THE CASES THEY ARE ALSO THE MOST SUCCESSFUL OF THE SEXUALDECEIT SUITS IN PART BECAUSE SOME STATE APPEALS COURTS INCLUDING CALIFORNIA'S HAVE GIVEN THEM THE GREEN LIGHT IN COURT JUDGMENTS AND MORE FREQUENT OUTOFCOURT SETTLEMENTS DEFENDANTS HAVE HAD TO PAY AMOUNTS RANGING FROM 15000 TO 450000 ACCORDING TO BARRY A POLLACK A LOS ANGELES LAWYER WHO HANDLED ONE OF THE FIRST SUCCESSFUL CASES INVOLVING GENITAL HERPES IN CALIFORNIA BECAUSE OF THE INCREASE IN CASES OVER HERPES MR POLLACK SAYS INSURERS OFTEN EXEMPT SEXUALLY TRANSMITTED DISEASES FROM COVERAGE IN HOMEOWNERS' AND OTHER POLICIES THAT IS WHY MANY TARGETS OF THESE SUITS TURN OUT TO BE ENTERTAINERS SPORTS FIGURES AND OTHER WELLOFF DEFENDANTS WHO CAN AFFORD TO SETTLE FOR HEFTY AMOUNTS HE SAYS SOME OF THESE CASES ARE FILED FOR SOCIAL JUSTICE AND SOME SO ATTORNEYS CAN MAKE A LIVING MR POLLACK ADDS SOME LAWYERS POINT TO THE SUCCESS OF SUCH CASES TO ARGUE THAT RECOGNITION OF A DISTINCT SEXUALFRAUD CLAIM IS UNNECESSARY BUT PROF LARSON COUNTERS THAT THE NEW THEORY WOULD COVER A WIDER RANGE OF WRONGS FOR EXAMPLE SHE SAYS SEXUALFRAUD SUITS COULD BE BROUGHT BY WOMEN WHO FIND OUT THEIR SEXUAL PARTNER LIED ABOUT BEING UNMARRIED AND THE CLAIM ALSO COULD BE MADE BY MEN WHO HAVE SLEPT WITH WOMEN WHO LIED ABOUT USING BIRTH CONTROL IN THE ABSENCE OF A RECOGNIZED SEXFRAUD LEGAL CLAIM THESE CASES INVOLVING BIRTH CONTROL HAVE BEEN DISALLOWED IN NEW YORK NEW JERSEY AND CALIFORNIA WHETHER INTIMATE MATTERS BELONG IN THE COURTS AT ALL REMAINS IN DISPUTE HOWEVER IN ONE CASE BARBARA A AS SHE WAS REFERRED TO IN COURT PAPERS SUED HER LAWYER AFTER THEY HAD AN AFFAIR AND SHE BECAME PREGNANT IN HER SUIT SHE SAID THAT SHE HAD SPECIFICALLY TOLD THE DEFENDANT JOHN G THAT SHE WOULD NOT HAVE SEX WITHOUT BIRTH CONTROL BECAUSE SHE DID NOT WANT TO BECOME PREGNANT HE ALLEGEDLY LED HER TO BELIEVE THAT HE WAS STERILE BARBARA A DEVELOPED AN ECTOPIC OR TUBAL PREGNANCY HAD SURGERY AND WAS RENDERED STERILE ACCORDING TO COURT DOCUMENTS A LOWER COURT THREW OUT THE CASE BUT AN APPEALS COURT REINSTATED IT THE APPELLATE COURT RULED THAT ALTHOUGH THE RIGHT TO PRIVACY NORMALLY SHIELDS SEXUAL RELATIONS FROM JUDICIAL SCRUTINY IT DOES NOT DO SO WHERE THE RIGHT TO PRIVACY IS USED AS A SHIELD FROM LIABILITY AT THE EXPENSE OF THE OTHER PARTY BUT IN A DISSENTING OPINION ONE JUDGE ARGUED THAT THAT COURT'S DECISION RAN COUNTER TO A 1939 CALIFORNIA LAW PROHIBITING SOCALLED SEDUCTION LAWSUITS IN WHICH A WOMAN WOULD CLAIM THAT HER VIRTUE HAD BEEN ROBBED BY A MAN WHO HAD DECEITFULLY LURED HER INTO SEXUAL RELATIONS SUCH CASES WERE COMMON IN THE VICTORIAN ERA BUT WERE OUTLAWED BY SOME STATES AS SOCIAL MORES CHANGED THE COURTS SHOULD STAY OUT OF THE BEDROOM THE DISSENTING JUDGE IN THE BARBARA A CASE CONCLUDED THE PARTIES SETTLED THE CASE OUT OF COURT SOME OTHER JUDGES HAVE AGREED WITH THAT SENTIMENT IN A CASE DECIDED BY A CALIFORNIA APPEALS COURT IN 1987 A WOMAN SUED A MARRIED MAN WITH WHOM SHE HAD HAD AN AFFAIR SHE SAID HE HAD CONVINCED HER TO HAVE AN ABORTION BY PROMISING HER HE WOULD IMPREGNATE HER AGAIN THE FOLLOWING YEAR THROUGH SEXUAL INTERCOURSE OR ARTIFICIAL INSEMINATION HE THEN BROKE THAT PROMISE THE PARTIES SETTLED AN EMOTIONALDISTRESS CLAIM BUT AN APPEALS COURT UPHELD A LOWERCOURT DECISION THROWING OUT THE REST OF THE CASE THE COURT RULED THAT ALTHOUGH A MISREPRESENTATION MAY HAVE OCCURRED THE PARTIES' PROCREATIVE DECISIONS WERE SO INTENSELY PRIVATE THAT WE DECLINE TO INTERVENE TO DO OTHERWISE THE COURT CONCLUDED WOULD PUT COURTS INTO THE POSITION OF SETTING STANDARDS FOR THE MAKING AND PERFORMING OF SUCH PROMISES MANY LAWYERS SHARE THAT COURT'S WORRIES THEY THINK THAT IT IS NOT ALWAYS THE COURTS' JOB TO REPAIR THE HARM DONE WHEN LOVERS LIE TO EACH OTHER PEOPLE WANT A SOLUTION FOR EVERY WRONG SAYS HELENE BREZINSKY A NEW YORK MATRIMONIAL LAWYER FRANKLY I THINK PEOPLE LOOK TO THE COURTS TO SOLVE PROBLEMS THE COURTS CAN'T SOLVE UNDERLYING SUCH DOUBTS IS THE FURTHER CONCERN OF SOME LAWYERS THAT MANY SUITS ON INTIMATE MATTERS ARE ULTIMATELY FRIVOLOUS SOME POINT TO A CASE DECIDED IN APRIL IN WHICH A CALIFORNIA MAN RONALD ASKEW SUED HIS FORMER WIFE FOR FRAUD BECAUSE SHE HAD NOT TOLD HIM BEFORE THEIR MARRIAGE THAT SHE WAS NOT SEXUALLY ATTRACTED TO HIM A JURY IN SANTA ANA AWARDED HIM 242000 A JUDGE SUBSEQUENTLY ORDERED BONNETTE ASKEW TO TRANSFER REALESTATE ASSETS VALUED AT ABOUT THAT AMOUNT TO HER EXHUSBAND AND SHE ASKED FOR A NEW TRIAL A DECISION ON HER REQUEST IS PENDING RICHARD W MILLAR JR WHO REPRESENTED MS ASKEW SAYS THAT PROF LARSON'S SEXUALFRAUD PROPOSAL IS IN LINE IN THEORY WITH WHAT HAPPENED IN THIS CASE HE FEELS THAT ACCEPTANCE OF THE SEXUALFRAUD CLAIM WOULD JUST LEAD TO MORE LITIGATION AND WOULD BE A LAWYER'S DREAM SEE RELATED LETTER LETTERS TO THE EDITOR KISS ME AGAIN AND I'LL SUE YOU WSJ JUNE 30 1993 9306110005 YY93 MM06 9306290167 930629 INTERSPEC SYSTEM APPROVED AMBLER PA INTERSPEC INC SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET ITS APOGEE RX400 MEDICAL DIAGNOSTIC ULTRASOUND SYSTEM IN THE US THE COMPANY MAKES SUCH SYSTEMS 9306290166 930629 LASERSIGHT PLANS ACQUISITION ORLANDO FLA LASERSIGHT INC SAID IT IS NEGOTIATING TO ACQUIRE CLOSELY HELD STERLING VISION INC A CHAIN OF OPTICAL RETAILERS LASERSIGHT WHICH MAKES LASER DEVICES DESIGNED TO CORRECT VISION PROBLEMS SAID DEFINITIVE TERMS HAVE NOT BEEN REACHED BUT NEGOTIATIONS ARE PROCEEDING TOWARD A LETTER OF INTENT LASERSIGHT SAID THE ACQUISITION WOULD GIVE IT A VERTICALLY INTEGRATED COMPANY COMPRISING AN OPTICAL CHAIN OPTOMETRISTS AND OPHTHALMOLOGISTS 9306290165 930629 REVIEW & OUTLOOK EDITORIAL THE ATTALI BANK JACQUES ATTALI SQUANDERED A FEW MEASLY MILLION DOLLARS ON A MARBLE LOBBY AND THE WHOLE WORLD CAME DOWN ON HIS HEAD THE WORLD BANK WHICH HAS A DELIGHTFUL BUILDING IN DOWNTOWN WASHINGTON SHOVELED BILLIONS OF DOLLARS INTO GREAT WHITE ELEPHANTS AND THE FAILURES GET LITTLE MORE ATTENTION THAN DULL NOTATIONS IN ACCOUNTS BOOKS THE SCANDAL SURROUNDING THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT HAS ALWAYS HAD A LOT TO DO WITH MR ATTALI'S PERSONALITY AND CAN BE EXPECTED TO FADE NOW THAT MR ATTALI HAS RESIGNED THE QUESTION IS WHETHER THE BANK WILL FADE AS WELL WITHOUT THIS DIFFICULT DYNAMO TO GIVE IT LIFE GIVEN THE CHOICE THOUGH BETWEEN MR ATTALI AND A DISCREET BUREAUCRATIC DRONE WE'RE NOT SURE WHO WE WOULD CHOOSE MR ATTALI SERVED A VERY USEFUL ROLE BY GETTING INTO THE CONSCIENCES OF NATIONAL POLITICIANS WHO WANT TO FORGET ABOUT THE EAST BY ATTRACTING EVERYBODY'S ATTENTION HE AT LEAST MADE SURE THAT HIS INSTITUTION RECEIVED OVERSIGHT NOT FOR NOTHING ARE MORE PRUDENT BUREAUCRATS HAPPILY FACELESS OTHER MULTINATIONAL LENDING INSTITUTIONS RECEIVE PATCHY OVERSIGHT AND SEEM TO SLIP INTO SELFSERVING PATTERNS A REMARKABLE INTERNAL REPORT AT THE WORLD BANK FOR EXAMPLE RECENTLY FOUND 20 OF THE PROJECTS SHOWING MAJOR PROBLEMS WITH PROJECTS INVOLVED WITH WATER SUPPLY SANITATION AND AGRICULTURE IN PARTICULARLY BAD SHAPE THE STAFF IS CRITICIZED FOR PUSHING THROUGH PROGRAMS THAT HAVE LITTLE LOCAL SUPPORT AND FOR PROMOTING LOAN VOLUME FOR THE SAKE OF ITS OWN BUREAUCRATIC EVALUATION PROCEDURES THE EBRD'S OTHER ADVANTAGE IS ITS LINKS TO THE PRIVATE SECTOR FOOLISHLY MANY PEOPLE ARE NOW TALKING ABOUT ABANDONING THIS FOCUS AND MAKING IT ANOTHER GOVERNMENTTOGOVERNMENT AID ORGANIZATION IF ANYTHING THE RATIO OF PRIVATE TO PUBLIC SECTOR LOANS SHOULD BE INCREASED OF COURSE THE EBRD IS STILL GOING TO HAVE TO EXPLAIN WHY IT EXISTS IN THE FIRST PLACE GIVEN THAT THE WORLD ALREADY HAS A LARGE MERCHANT BANKING INDUSTRY 9306290164 930629 WHO'S NEWS MOLTEN METAL TECHNOLOGY INC MOLTEN METAL TECHNOLOGY INC WALTHAM MASS PETER A LEWIS 62 YEARS OLD WAS ELECTED A DIRECTOR OF THIS ENVIRONMENTAL TECHNOLOGY CONCERN EXPANDING THE BOARD TO SEVEN MEMBERS HE IS A LIMITED PARTNER OF LAZARD FRERES & CO 9306290163 930629 NUMBER OF BLUE CROSS INSURANCE PLANS MAY SHRINK UNDER HEALTHCARE REFORM BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE EXPECTED OVERHAUL OF THE NATION'S HEALTHCARE SYSTEM COULD REDUCE THE NUMBER OF BLUE CROSS AND BLUE SHIELD PLANS TO AS FEW AS 40 FROM 70 ACCORDING TO THE HEAD OF THE NATIONAL ASSOCIATION FOR SUCH ORGANIZATIONS HEALTHCARE REFORM WOULD ALSO WIPE OUT THE BLUES' MISSION AS AN INSURER OF LAST RESORT AND FORCE THEM TO COMPETE WITH FORPROFIT INSURANCE COMPANIES WITHOUT BENEFIT OF TAX BREAKS AND REGULATORY ADVANTAGES MANY PLANS WILL MERGE OR GO OUT OF BUSINESS BUT THE STRONGEST WILL SURVIVE AND EMERGE EVEN STRONGER SAID BERNARD TRESNOWSKI PRESIDENT OF BLUE CROSS AND BLUE SHIELD ASSOCIATION IF ALL HEALTH INSURERS PLAY BY THE NEW RULES THERE WILL NOT BE A UNIQUE ROLE FOR THE BLUES HE SAID I DON'T HAVE A PROBLEM WITH THAT COVERING 25 OF THE US BLUE CROSS ORGANIZATIONS WHICH INSURE ONE OF EVERY FOUR AMERICANS HAVE BEEN AROUND SINCE THE 1930S AND WERE FOUNDED AS A VEHICLE TO MAKE SURE HOSPITALS GOT PAID OVER THE YEARS MANY PLANS BECAME THE INSURER OF LAST RESORT TAKING EVEN SICK APPLICANTS IN EXCHANGE FOR DISCOUNTS ON HOSPITAL FEES AND OTHER ADVANTAGES GIVEN TO THEM BY STATE LEGISLATURES A SENATE PANEL IS NOW INVESTIGATING MANAGEMENT PRACTICES AT SEVERAL OF THE FINANCIALLY WEAKEST BLUES ORGANIZATIONS INCLUDING THE LARGEST NEW YORKBASED EMPIRE BLUE CROSS AND BLUE SHIELD HEALTHCARE REFORM AS ENVISIONED BY PRESIDENT CLINTON WOULD FORCE EVERY INSURER TO ACCEPT ALL COMERS REFORM WOULD ALSO ENCOURAGE INSURERS TO SWITCH FROM OFFERING TRADITIONAL PLANS THAT PAY DOCTORS AND HOSPITALS FOR SPECIFIC SERVICES TO MANAGEDCARE ORGANIZATIONS THAT PAY DOCTORS AND HOSPITALS BY NEGOTIATING VOLUME DISCOUNTS MAKING A BLUE'S PLAN COMPETITIVE IN A MANAGEDCARE ENVIRONMENT WOULD REQUIRE HUGE CAPITAL EXPENDITURES FOR STAFF AND TECHNOLOGY MR TRESNOWSKI SAID MERGERS BY MAKING PLANS MORE EFFICIENT WILL SAVE MONEY THAT CAN BE PLOWED INTO THE CREATION OF HEALTHCARE NETWORKS THE KEY TO COMPETITIVENESS IS CAPITAL MR TRESNOWKSI SAID SOME 30 OF BLUE CROSS'S 68 MILLION MEMBERS ARE ENROLLED IN MANAGED CARE PLANS BY THE YEAR 2000 THE PERCENTAGE WILL HAVE RISEN TO 70 HE SAID IN A MAJOR RESPECT THE BLUES ARE WELL POSITIONED FOR HEALTHCARE REFORM BECAUSE OF THEIR MARKET SHARE BLUES ARE AMONG THE LARGEST INSURERS IN MOST MARKETS AND SIZE IS EXPECTED TO BE A KEY FACTOR IN SUCCESS UNDER A MANAGEDCARE ENVIRONMENT WHETHER EACH CAN CAPITALIZE ON THEIR DOMINANCE IS THE QUESTION THEY START WITH A BIG LEG UP SAID ROBERT PATRICELLI PRESIDENT OF VALUE HEALTH INC A SPECIALTY MANAGEDCARE COMPANY IN AVON CONN MR PATRICELLI SAID THE CAPITAL ISSUES CAN BE OVERCOME THROUGH CONSOLIDATION OR BY RAISING MONEY FROM THE OUTSIDE SUCH AS BLUE CROSS OF CALIFORNIA DID BY SELLING A 175 STAKE OF ITS HEALTHCARE MAINTENANCE ORGANIZATION IN JANUARY THE COMPANY SOLD WELLPOINT HEALTH NETWORKS INC TO THE PUBLIC FOR 476 MILLION THE BIGGEST QUESTION IN MR PATRICELLI'S MIND IS WHETHER THE BLUES HAVE THE MANAGEMENT EXPERTISE TO SWITCH FROM A PROTECTED ENVIRONMENT TO A COMPETITIVE ONE THE BLUES WILL BE FACING MORE INTENSE COMPETITION FROM COMMERCIAL INSURERS HE SAID CONSOLIDATION HAS ALREADY BEGUN IN 1981 WHEN MR TRESNOWSKI TOOK OFFICE THERE WERE 110 BLUE CROSS AND BLUE SHIELD ORGANIZATIONS COMPARED WITH 70 CURRENTLY LAST MONTH BLUE CROSS ORGANIZATIONS IN ILLINOIS IOWA AND SOUTH DAKOTA AGREED TO MERGE AS HAVE PLANS IN INDIANA AND KENTUCKY LAST WEEK CENTRAL BENEFITS MUTUAL INSURANCE CO A BLUES PLAN IN COLUMBUS OHIO WITHDREW FROM THE ASSOCIATION THE ACTION WAS RELATED TO A BILL BEFORE OHIO LAWMAKERS THAT WOULD FORCE A MERGER OF ALL THE BLUE CROSS AND BLUE SHIELD PLANS IN THE STATE 9306290162 930629 WHO'S NEWS CENTRAL MAINE POWER CO CENTRAL MAINE POWER CO AUGUSTA MAINE ANNE SZOSTAK 43 YEARS OLD WAS ELECTED A DIRECTOR OF THIS UTILITY CONCERN SHE SUCCEEDS GWAIN GILLESPIE WHO RETIRED FROM THE BOARD MS SZOSTAK IS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF FLEET BANK OF MAINE A UNIT OF FLEET FINANCIAL GROUP INC 9306290161 930629 TECHNOLOGY MYLAN DRUG WINS APPROVAL PITTSBURGH MYLAN LABORATORIES INC SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO MANUFACTURE AND MARKET SULINDAC THE GENERIC VERSION OF MERCK & CO'S CLINORIL DRUG THE DRUG TREATS OSTEOARTHRITIS RHEUMATOID ARTHRITIS ANKYLOSING SPONDYLITIS ACUTE PAINFUL SHOULDER AND ACUTE GOUTY ARTHRITIS 9306290160 930629 KODAK TO REDEEM DEBENTURES ROCHESTER NY EASTMAN KODAK CO SAID IT WILL REDEEM ON JULY 23 ITS 300 MILLION OF 8 5/8 DEBENTURES DUE 2016 KODAK SAID THE DEBENTURES WILL BE REDEEMED AT 105050 FOR EACH 1000 DEBENTURE WHICH REPRESENTS A REDEMPTION PRICE OF 104140 PLUS ACCRUED INTEREST OF 910 THE COMPANY SAID THE PAYING AGENT FOR THE REDEMPTION IS BANK OF NEW YORK 9306290159 930629 CITICORP TO REDEEM 8 1/4 NOTES NEW YORK CITICORP SAID IT WILL REDEEM ITS 250 MILLION OF 8 1/4 SUBORDINATED NOTES DUE 1996 AT 100 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TO JULY 26 THE REDEMPTION DATE CITICORP SAID THAT INCLUDING THIS CALL IT HAS ACCELERATED REDEMPTION OF 109 BILLION OF LONGTERM DEBT THIS YEAR AND ANTICIPATES ADDITIONAL REDEMPTIONS THIS YEAR TO REDUCE LONGTERM FUNDING COSTS 9306290158 930629 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JUNE 25 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ANNE ARUNDEL COUNTY MD WILL REDEEM ON JULY 15 1993 IN A SINKING FUND REDEMPTION 145000 PRINCIPAL AMOUNT OF ITS 5 1/2 POLLUTION CONTROL REVENUE BONDS 1977 SERIES MARYLAND NATIONAL BANK BALTIMORE IS TRUSTEE BALTIMORE MD WILL REDEEM ON JULY 15 1993 IN A SINKING FUND REDEMPTION 100000 PRINCIPAL AMOUNT OF ITS 5 1/2 POLLUTION CONTROL REVENUE BONDS 1977 SERIES MARYLAND NATIONAL BANK BALTIMORE IS TRUSTEE BALTIMORE COUNTY MD WILL REDEEM ON JULY 15 1993 IN A SINKING FUND REDEMPTION 175000 PRINCIPAL AMOUNT OF ITS 5 1/2 POLLUTION CONTROL REVENUE BONDS 1977 SERIES MARYLAND NATIONAL BANK BALTIMORE IS TRUSTEE BREA REDEVELOPMENT AGENCY WILL REDEEM ON AUGUST 1 1993 ITS 1983 TAX ALLOCATION BONDS SERIES A FIRST INTERSTATE BANK OF CALIFORNIA CALABASAS CALIF IS FISCAL AGENT EAST CHICAGO IND WILL REDEEM ON JULY 26 1993 ITS POLLUTION CONTROL REVENUE BONDS SERIES 1982 A DUE DEC 1 2012 AND SERIES 1980 B DUE OCT 1 2000 AND 2010 BANK ONE INDIANAPOLIS IS TRUSTEE FREEPORT ILL WILL REDEEM ON AUGUST 1 1993 1070000 PRINCIPAL AMOUNT OF ITS SINGLE FAMILY MORTGAGE REVENUE BONDS 1979 SERIES A CONTINENTAL BANK CHICAGO IS CUSTODIAN HARLAN COUNTY KY WILL REDEEM ON AUG 1 1993 ITS FIRST MORTGAGE MEDICAL FACILITY REVENUE BONDS DUE AUG 1 2002 CITIZENS BANK OF HENDERSON COUNTY HENDERSON KY IS PAYING AGENT ILLINOIS INDUSTRIAL POLLUTION CONTROL FINANCING AUTHORITY WILL REDEEM ON JULY 1 1993 55000 PRINCIPAL AMOUNT OF ITS 6 5/8 SECURING POLLUTION CONTROL REVENUE BONDS 1974 SERIES A DUE JULY 1 2004 THIS IS A CORRECTED NOTICE FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE NEWARK HOUSING FINANCE CORPORATION WILL REDEEM ON JULY 15 1993 THE FOLLOWING MORTGAGE REVENUE BONDS DUE JULY 1 OF THE YEAR INDICATED 116 DUE 1994 118 DUE 1995 12 DUE 1996 1997 AND 2023 NATIONAL COMMUNITY BANK OF NEW JERSEY IS ESCROW AGENT NEW YORK STATE DORMITORY AUTHORITY WILL REDEEM ON JULY 1 1993 245000 PRINCIPAL AMOUNT OF ITS 62 GNMA COLLATERIZED HOSPITAL SERIES A BONDS DUE JULY 1 1998 AND 50000 PRINCIPAL AMOUNT OF ITS GNMA COLLATERIZED HOSPITAL 1982 SERIES BONDS DUE SEPT 15 2010 BANK OF TOKYO TRUST CO IS TRUSTEE THE AUTHORITY WILL ALSO REDEEM ON JULY 1 1993 700000 OF ITS GNMA HOSPITAL SERIES 675 SERIES A BONDS DUE JULY 1 1995 BANKERS TRUST CO NEW YORK IS PAYING AGENT PORT AUTHORITY OF NY & NJ WILL REDEEM ON AUG 1 1993 THE FOLLOWING 4345000 PRINCIPAL AMOUNT OF ITS 5 CONSOLIDATED BONDS 32ND SERIES DUE 2003 AND 1000000 PRINCIPAL AMOUNT OF ITS 6 1/2 CONSOLIDATED BONDS 45TH SERIES DUE 2012 CITIBANK NEW YORK IS PAYING AGENT ALSO 82955000 PRINCIPAL AMOUNT OF ITS 6 CONSOLIDATED BONDS 37TH SERIES DUE 2006 CHEMICAL BANK NEW YORK IS PAYING AGENT ALSO 3040000 PRINCIPAL AMOUNT OF ITS 58 CONSOLIDATED BONDS 39TH SERIES DUE 2007 MORGAN GUARANTY TRUST CORP NEW YORK IS PAYING AGENT AND 100000000 PRINCIPAL AMOUNT OF ITS 7 1/8 CONSOLIDATED BONDS 56TH SERIES DUE 2021 CHASE MANHATTAN BANK NEW YORK IS PAYING AGENT HYDROQUEBEC WILL REDEEM ON AUGUST 15 1993 55500000 OF ITS 10 1/4 SINKING FUND DEBENTURES SERIES CX DUE FEB 15 1996 BANK OF MONTREAL TRUST CO NEW YORK IS THE REDEMPTION AGENT KENTUCKY UTILITIES CO WILL REDEEM ON JULY 19 1993 ITS 7625 FIRST MORTGAGE BONDS SERIES H DUE MAY 1 1999 AND ITS 875 FIRST MORTGAGE BONDS SERIES I DUE APRIL 1 2000 CONTINENTAL BANK CHICAGO IS TRUSTEE 9306290157 930628 CREDIT RATINGS MOODY'S IS STUDYING POSSIBLE DOWNGRADE OF TIMES MIRROR DEBT SPECIAL TO THE WALL STREET JOURNAL NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT PLACED THE SINGLEA1 SENIOR DEBT RATING OF TIMES MIRROR CO UNDER REVIEW FOR POSSIBLE DOWNGRADING ABOUT 900 MILLION OF LONGTERM DEBT IS AFFECTED MOODY'S SAID THE RATINGS AGENCY SAID ITS REVIEW WAS PROMPTED BY CONCERNS OVER THE DEEPENING EARNINGS WEAKNESS OF THE COMPANY'S NEWS PAPER UNIT ESPECIALLY ITS LOS ANGELES NEWSPAPER COMBINED WITH ONGOING REGULATORY UNCERTAINTIES THAT MAY NEGATIVELY AFFECT ITS CABLE TELEVISION SEGMENT THE RATINGS REVIEW ALSO FOCUSED ON TIMES MIRROR'S POTENTIAL USE OF 300 MILLION IN PROCEEDS FROM THE PLANNED SALE OF THE COMPANY'S TELEVISION STATIONS MOODY'S SAID TIMES MIRROR HAS AGREED TO SELL ITS FOUR BROADCAST STATIONS TO ARGYLE TELEVISION HOLDING INC FOR 335 MILLION IN CASH AND SECURITIES ON THE POSITIVE SIDE TIMES MIRROR GETS CASH AND REDUCES DEBT BUT IT'S ONLY A TEMPORARY REDUCTION OF DEBT SAID GERY M SAMPERE AN ANALYST AT MOODY'S THEY'RE GOING TO HAVE TO REINVEST THE PROCEEDS TO ENJOY A TAX ADVANTAGE AND THE QUESTION IS WHAT KIND OF ASSETS AND PROPER TIES THEY'LL INVEST IN RATINGS UNDER REVIEW FOR POSSIBLE DOWNGRADE ARE THE SENIOR NOTES AND DEBENTURES RATED SINGLEA1 THE MEDIUM TERM NOTES RATED SINGLEA1 AND THE SHELF REGISTRATION RATED PSINGLEA1 9306290156 930629 VICTORIA BANKSHARES TO REDUCE STAFF POST 2NDQUARTER CHARGE VICTORIA TEXAS VICTORIA BANKSHARES INC SAID IT WOULD REDUCE ITS 950EMPLOYEE WORK FORCE BY 4 OFFER EARLY RETIREMENT TO ABOUT 40 OTHER EMPLOYEES AND CHANGE AN UNDETERMINED NUMBER OF POSITIONS FROM FULLTIME TO PARTTIME STATUS THE BANKING CONCERN SAID IT WOULD RECORD A ONETIME PRETAX CHARGE OF 28 MILLION OR ABOUT 26 CENTS A SHARE AGAINST SECONDQUARTER EARNINGS IN CONNECTION WITH THE RESTRUCTURING WHICH IT ESTIMATED WOULD SAVE ABOUT 24 MILLION IN ANNUAL COSTS AND ALLOW THE COMPANY TO BECOME MORE FLEXIBLE IN RESPONDING TO CUSTOMER SERVICE NEEDS THE COMPANY SAID IT DIDN'T ANTICIPATE THAT THE RESTRUCTURING CHARGE WOULD RESULT IN A LOSS FOR THE SECOND QUARTER IN THE YEARAGO SECOND QUARTER THE COMPANY REPORTED A NET INCOME OF 49 MILLION OR 76 CENTS A SHARE FOR THE FIRST QUARTER VICTORIA BANKSHARES REPORTED A NET INCOME OF 82 MILLION OR 115 A SHARE AFTER AN EXTRAORDINARY GAIN OF 48 MILLION OR 47 CENTS A SHARE FROM THE CUMULATIVE EFFECT OF AN ACCOUNTING CHANGE IN THE YEAREARLIER PERIOD THE COMPANY REPORTED NET INCOME OF 41 MILLION OR 57 CENTS A SHARE IN LATE NATIONAL OVERTHECOUNTER TRADING YESTERDAY VICTORIA BANKSHARES STOCK CLOSED AT 2150 A SHARE DOWN 9 OR 2125 9306290155 930629 MARRIOTT SELLS 3 RESTAURANTS WASHINGTON MARRIOTT CORP SAID IT SOLD THREE BOB'S BIG BOY RESTAURANTS TO FRANCHISE ASSOCIATES INC FOR AN UNDISCLOSED AMOUNT IN 1989 MARRIOTT ANNOUNCED PLANS TO EXIT FROM THE FAMILY RESTAURANT BUSINESS AND SELL ITS 221 BOB'S BIG BOY EATERIES AFTER THE SALE TO FRANCHISE ASSOCIATES MARRIOTT WILL HAVE 24 BOB'S BIG BOYS FRANCHISE ASSOCIATES SOUTH WEYMOUTH MASS THE EXCLUSIVE FRANCHISER OF HOWARD JOHNSON'S RESTAURANTS IN THE US PLANS TO CONVERT THE RESTAURANTS INTO HOWARD JOHNSON'S 9306290154 930629 LETTERS TO THE EDITOR JUDGE'S VIEWS A DANGER TO OUR CONSTITUTION RUTH GINSBURG IS A JUDGE'S JUDGE ONE WHO BELIEVES IN THE RULE OF LAW PETER HUBER AND RICHARD TARANTO WRITE ON YOUR JUNE 15 EDITORIAL PAGE BUT THE EXAMPLES THEY CITE COMPLETELY REFUTE THAT ANALYSIS AND EXPOSE HER AS A FEMINIST EXTREMIST WHO'S MORE THAN HAPPY TO PERVERT THE CONSTITUTION TO PUSH HER POLITICAL AGENDA FOR EXAMPLE SHE DISSENTED ON FIRST AMENDMENT GROUNDS FROM A DECISION UPHOLDING THE REAGAN AND BUSH ADMINISTRATIONS' BAN ON AID TO FOREIGN FAMILYPLANNING ORGANIZATIONS THAT PROVIDE ABORTION COUNSELING AND REFERRALS HOW CAN A REFUSAL TO FUND AN OUTFIT HAVE ANYTHING TO DO WITH ONE'S RIGHT TO FREE SPEECH IT CAN'T OF COURSE THIS IS JUST A CRUDE ATTEMPT TO USE RAW JUDICIAL POWER TO CHANGE A POLITICAL POLICY ACCORDING TO MESSRS HUBER AND TARANTO SHE HAS SUCH AN EXPANSIVE VIEW OF THE EQUAL PROTECTION CLAUSE AS TO MAKE ENACTMENT OF THE RADICAL EQUAL RIGHTS AMENDMENT SUPERFLUOUS IF THE SUPREME COURT WAS TO FOLLOW HER LEAD THE ERA WHICH WENT THROUGH THE CONSTITUTIONAL PROCESS FOR RATIFICATION AND FAILED WOULD BE INFLICTED ON US BY JUDICIAL FIAT IN FACT MESSRS HUBER AND TARANTO MAKE CLEAR THAT JUDGE GINSBURG'S VIEW OF THE EQUAL PROTECTION CLAUSE GOES BEYOND WHAT EVEN A RATIONAL READING OF THE FAILED ERA WOULD REQUIRE THEY CLAIM THAT SHE BELIEVES THAT THE EQUAL PROTECTION CLAUSE NECESSARILY IMPLIES FREEDOM OF REPRODUCTIVE AUTONOMY IE THE RIGHT TO ABORTION PRESUMABLY BECAUSE MEN ARE NEVER PREGNANT AND WOMEN SOMETIMES ARE WOMEN HAVE THE RIGHT TO UNDO A PREGNANCY AND BE IN THE SAME STATE AS ALL MEN THIS IS NONSENSE IT HAS NOTHING TO DO WITH THE 14TH AMENDMENT'S EQUAL PROTECTION CLAUSE WHICH WAS ADOPTED TO PROTECT THE FORMER SLAVES FROM RACIAL DISCRIMINATION BY THE GOVERNMENT THEORIES OF SUBSTANTIVE EQUAL PROTECTION SUCH AS JUDGE GINSBURG'S CONTRIBUTE TO THE DESTRUCTION OF OUR CONSTITUTION AND THE USURPATION OF THE PEOPLE'S POWER IN A REPRESENTATIVE FORM OF GOVERNMENT 9306290153 930629 GTI TO BOOST STAKE IN UNIT SAN DIEGO GTI CORP SAID IT WOULD INCREASE ITS STAKE IN ITS VALOR ELECTRONICS UNIT TO 972 FROM 908 FOR 105 MILLION INCLUDING 104 MILLION IN NOTES GTI SAID IT PLANS A PUBLIC OFFERING OF 400000 COMMON SHARES THIS SUMMER WITH PROCEEDS TO BE USED TO FUND THE PAYMENT TO VALOR'S MINORITY SHAREHOLDERS THE PROMISSORY NOTES TO BE PAID WILL BE DUE OCT 1 GTI MAKES NETWORK PRODUCTS AND ELECTRONIC PARTS AND PRODUCTS FOR THE COMMUNICATIONS ELECTRONICS AND SEMICONDUCTOR INDUSTRIES 9306290152 930629 INTERNATIONAL JAPAN'S MAY RETAIL SALES DECLINE TOKYO SALES AT JAPAN'S MAJOR DEPARTMENT STORES AND SUPERMARKETS IN MAY DECLINED 38 TO 1733 TRILLION YEN 1633 BILLION FROM THE YEAREARLIER MONTH THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY REPORTED THE DROP EXTENDS THE DECLINE IN RETAIL SALES FROM YEAREARLIER LEVELS TO A FULL 12 MONTHS HOWEVER THE DECLINES HAVE BECOME SMALLER AND THE MAY DECREASE IS THE NARROWEST SINCE THE 30 DROP IN JANUARY INCREASED SIGNS OF ECONOMIC RECOVERY ALBEIT TENTATIVE HAVE BEEN SHOWING UP GOVERNMENT OFFICIALS SAY RAISING THE POSSIBILITY THAT THE ECONOMY HIT BOTTOM LAST QUARTER 9306290151 930629 MARKETING & MEDIA EXFNN OFFICIALS ARE ACCUSED BY SEC OF FALSIFYING DATA BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION ACCUSED FOUR FORMER OFFICERS OF FINANCIAL NEWS NETWORK INC OF FALSIFYING THE COMPANY'S OWN FINANCIAL NEWS THE SEC COMPLAINT FILED IN FEDERAL COURT HERE ALLEGES AMONG OTHER THINGS THAT FNN'S FOUNDER AND FORMER TOP OFFICER EARL W BRIAN HELPED COVER UP INFLATED REVENUES FOR FNN AND AFFILIATED COMPANIES MR BRIAN A FORMER NEUROSURGEON NOW WORKING AS A CONSULTANT AND VENTURE CAPITALIST AGREED TO SETTLE WITH THE SEC WITHOUT ADMITTING OR DENYING WRONGDOING IN A STATEMENT MR BRIAN SAID THE SETTLEMENT WAS THE ONLY PRACTICAL COURSE FOR ME TO TAKE HE IS ACCUSED BY THE SEC OF HELPING CONCEAL FINANCIAL DATA ALLEGEDLY INFLATED BY FNN'S FORMER CHIEF FINANCIAL OFFICER C STEPHEN BOLEN OF LOS ANGELES WITH THE HELP OF COMPANY CONTROLLER MITCHEL H YOUNG OF MARINA DEL REY CALIF MR YOUNG'S LAWYER JAMES CHALFANT OF LOS ANGELES SAID HE HADN'T READ THE COMPLAINT AND COULDN'T COMMENT THE ALLEGEDLY INFLATED FIGURES PUMPED UP THE COMPANY'S BALANCE SHEET FOR FISCAL 1989 AND THE FIRST THREE QUARTERS OF 1990 THE COMPLAINT CHARGES THAT MESSRS BOLEN AND YOUNG WERE ASSISTED BY GARY A PRINCE OF OAKTON VA FORMER CHIEF FINANCIAL OFFICER FOR AN FNN AFFILIATE UNITED PRESS INTERNATIONAL INC THE COMPLAINT CHARGES AMONG OTHER THINGS THAT UPI PAID FOR LEASING A TELEVISION SIGNAL THAT IT NEVER USED MR PRINCE'S LEAD DEFENSE LAWYER JOSEPH WARIN COULDN'T BE REACHED FOR COMMENT MR BOLEN IS ALSO ACCUSED OF DIVERTING 800000 OF FNN FUNDS TO A COMPANY HE CONTROLLED IN ADDITION HE IS ACCUSED OF INSIDER TRADING IN THE SALE OF 20000 SHARES OF FNN STOCK AT 9 A SHARE THE SALE TOOK PLACE SHORTLY BEFORE FNN ANNOUNCED AN IMPENDING RESTATEMENT OF SEVEN QUARTERS OF EARNINGS AND THE SEC PROBE THE STOCK PRICE SUBSEQUENTLY DROPPED TO A LOW OF 175 A SHARE MR BOLEN'S LAWYER COULDN'T BE REACHED FOR COMMENT ALLEGATIONS OF QUESTIONABLE FINANCIAL TRANSACTIONS BETWEEN FNN AND TWO AFFILIATED COMPANIES UPI AND INSTITUTIONAL RESEARCH NETWORK INC WERE JUST BEGINNING TO SURFACE WHEN FNN SOUGHT BANKRUPTCYCOURT PROTECTION IN MARCH 1991 AFTER A BIDDING WAR THAT INCLUDED DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL FNN'S CABLE TELEVISION OPERATIONS WERE SOLD TO CNBC GENERAL ELECTRIC CO'S CABLE BUSINESS NEWS AND TALK NETWORK UPI WHICH ALSO SOUGHT BANKRUPTCYCOURT PROTECTION HAS ALSO BEEN SOLD 9306290149 930629 PANHANDLE EASTERN EXPECTS TO ANNOUNCE PLAN TO ADD CAPACITY HOUSTON PANHANDLE EASTERN CORP EXPECTS TO UNVEIL A PLAN TO ADD ABOUT 23 TO ITS CURRENT NATURALGAS PIPELINE CAPACITY OVER THE NEXT 10 YEARS PAUL M ANDERSON EXECUTIVE VICE PRESIDENT SAID THE GAS PIPELINE COMPANY PLANS TO FINANCE THE EXPANSION OUT OF PROCEEDS FROM ITS RECENTLY COMPLETED OFFERING OF 10 MILLION COMMON SHARES AT 2125 A SHARE THE OFFERING BOOSTED PANHANDLE'S SHARES OUTSTANDING TO 119 MILLION PANHANDLE CLOSED YESTERDAY AT 24125 DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE TRADING MR ANDERSON IN AN INTERVIEW SAID THE EXPANSION WILL BOOST PANHANDLE'S DAILY GAS TRANSPORTING CAPACITY TO MORE THAN 37 BILLION CUBIC FEET FROM ABOUT THREE BILLION CUBIC FEET WE'LL BE DOING IT AS THE MARKET EXPANDS HE SAID MR ANDERSON SAID THE COMPANY ALREADY HAS ACQUIRED LEGAL RIGHTOFWAY IN AREAS WHERE THE ADDITIONAL PIPE IS PLANNED THUS ENVIRONMENTAL PERMITS NEEDED FOR THE EXPANSION ARE MINIMAL HE SAID PANHANDLE'S 27000MILE PIPELINE IS ALREADY THE COUNTRY'S SECOND LONGEST AFTER ENRON CORP'S PANHANDLE SAID IT COMPLETED REPAIRS IN MAY TO ITS GAS PIPELINE SYSTEM IN THE GULF OF MEXICO THAT WAS SEVERELY DAMAGED BY HURRICANE ANDREW IN SEPTEMBER THE COMPANY TRANSPORTS ABOUT 800 MILLION CUBIC FEET OF GAS A DAY FROM THE GULF WE HAVE DESIGNED THE NEW PLATFORMS FOR A 100YEAR STORM SAID MR ANDERSON THE COMPANY SAYS IT LEADS THE PIPELINE INDUSTRY IN RESTRUCTURING MANDATED UNDER A FEDERAL ENERGY AND REGULATORY COMMISSION ORDER LAST SUMMER ALTHOUGH COMPLIANCE ISN'T REQUIRED UNTIL NOVEMBER ALTHOUGH PANHANDLE HASN'T YET READIED ITS SECONDQUARTER EARNINGS FIGURES MR ANDERSON SAID THAT NEITHER THE RESTRUCTURING NOR THE RECENT DECLINE IN GAS PRICES HAVE CUT INTO THE COMPANY'S PROFIT MARGINS IN THE 1992 SECOND QUARTER PANHANDLE HAD NET OF 116 MILLION OR 10 CENTS A SHARE ON REVENUE OF 4847 MILLION ANALYSTS' ESTIMATES OF THE COMPANY'S EARNINGS FOR THE CURRENT QUARTER RANGE FROM 11 CENTS TO 25 CENTS A SHARE 9306290148 930629 BUSINESS BRIEF THREE EDUCATIONAL PUBLISHERS SET UP COMPUTER ALLIANCES NEW YORK THREE EDUCATIONAL PUBLISHERS SCHOLASTIC INC ADDISONWESLEY PUBLISHING CO AND PARAMOUNT PUBLISHING ANNOUNCED NEW ALLIANCES TO DELIVER THEIR INSTRUCTIONAL MATERIALS ELECTRONICALLY SCHOLASTIC WHICH IS BASED HERE SAID IT FORMED A NEW EDUCATIONAL COMPUTER NETWORK WITH AMERICA ONLINE INC VIENNA VA CALLED SCHOLASTIC NETWORK THE SERVICE WILL BE MARKETED PRIMARILY TO SCHOOLS WHERE TEACHERS CAN USE PERSONAL COMPUTERS TO CALL UP ACTIVITY GUIDES TEACHING MATERIALS SCHOLASTIC MAGAZINE AND AN ONLINE ENCYCLOPEDIA THE NETWORK WHICH WILL BE LAUNCHED IN SEPTEMBER ALSO CAN BE USED DIRECTLY BY STUDENTS DOING RESEARCH JOHN LENT DIRECTOR OF SCHOLASTIC NETWORK SAID ONE OF THE NETWORK'S MAJOR ATTRACTIONS TO TEACHERS IS THEY CAN LEAVE MESSAGES ON A COMPUTER BULLETIN BOARD AND EXCHANGE IDEAS WITH OTHER TEACHERS SCHOLASTIC SAID THE SERVICE WILL COST SUBSCRIBERS 1695 A MONTH FOR AS MUCH AS FIVE HOURS OF SERVICE AND PLANS GRANTS TO SCHOOLS THAT CAN'T AFFORD THE NETWORK SEPARATELY ADDISONWESLEY A READING MASS UNIT OF BRITAIN'S PEARSON PLC SAID THAT IT ACQUIRED A SIGNIFICANT MINORITY STAKE IN ADAM SOFTWARE INC AND THAT THE TWO AGREED TO DEVELOP MULTIMEDIA EDUCATIONAL PRODUCTS TOGETHER TERMS WEREN'T DISCLOSED AS PART OF THE DEAL ADDISONWESLEY TOOK A SEAT ON THE BOARD OF ADAM A CLOSELY HELD SOFTWARE COMPANY IN ATLANTA THAT MAKES MEDICALLY ORIENTED SOFTWARE INCLUDING DISKS USED BY MEDICAL STUDENTS TO STUDY ANATOMY AT PARAMOUNT PUBLISHING A UNIT OF PARAMOUNT COMMUNICATIONS INC THE PRENTICE HALL DIVISION ANNOUNCED PLANS TO DEVELOP MULTIMEDIA PRODUCTS WITH SOFTWARE DEVELOPER MACROMEDIA INC OF SAN FRANCISCO THE FIRST JOINT PROJECT WILL BE AN EDUCATIONAL PACKAGE THAT SHOWS TEACHERS HOW TO CREATE INTERACTIVE LEARNING PROGRAMS THEY WILL ALSO GET SOFTWARE TO DEVELOP INTERACTIVE WORKBOOKS THAT STUDENTS CAN ACCESS ON THEIR OWN COMPUTERS 9306290147 930629 SAFECARD CREDITLINE WON'T RENEW PACT AMID BATTLE IN COURTS CHEYENNE WYO SAFECARD SERVICES INC SAID THAT CREDITLINE CORP HAS DECIDED NOT TO RENEW AN AGREEMENT THAT ALLOWS SAFECARD TO MARKET CERTAIN CREDITLINE PRODUCTS AND SERVICES THE AGREEMENT EXPIRES NOV 1 THE ANNOUNCEMENT COMES AMID A LONGRUNNING LEGAL BATTLE BETWEEN SAFECARD AND ITS COFOUNDER PETER HALMOS WHO WAS FORCED OUT AS CHAIRMAN IN DECEMBER AND WHO NOW CONTROLS CLOSELY HELD CREDITLINE OF LARAMIE WYO CREDITLINE FURNISHES REPORTS THAT ALLOW CONSUMERS TO REVIEW DATA COLLECTED ABOUT THEM BY CREDITREPORTING AGENCIES SAFECARD WHICH NOTIFIES CREDITCARD ISSUERS OF LOST OR STOLEN CARDS SAID THAT DESPITE THE NONRENEWAL ITS CURRENT AGREEMENT GIVES IT THE RIGHT TO CONTINUE SERVICING EXISTING CREDITLINE SUBSCRIBERS AND MARKETING CREDITLINE PRODUCTS THROUGH CARDISSUER CLIENTS WHO EITHER HAVE ALREADY CONTRACTED FOR THE SERVICE OR DO SO WITHIN THREE YEARS OF THE PACT'S EXPIRATION SAFECARD SAID IT DOES NOT BELIEVE THAT THE NONRENEWAL WILL HAVE MUCH EFFECT UPON ITS FINANCIAL RESULTS THE COMPANY SAID THAT CREDITLINE ONLY ACCOUNTED FOR ABOUT 500000 OF THE 174 MILLION IN NET INCOME THAT IT REPORTED FOR THE SIX MONTHS ENDED APRIL 30 LAST MONTH MR HALMOS FILED SUIT AGAINST SAFECARD AND ONE OF ITS DIRECTORS IN AN ILLINOIS STATE COURT SEEKING DAMAGES OF MORE THAN 100 MILLION FOR ALLEGED BREACH OF CONTRACT ALSO LAST MONTH SAFECARD FILED CLAIMS AND COUNTERCLAIMS AGAINST MR HALMOS IN FEDERAL DISTRICT COURT IN WYOMING AND IN A FLORIDA CIRCUIT COURT SEEKING TO RECOUP TENS OF MILLIONS OF DOLLARS IN ALLEGED INSIDERTRADING PROFITS 9306290146 930629 APPLE UNVEILS PORTABLE PRINTER CUPERTINO CALIF APPLE COMPUTER INC INTRODUCED A BRIEFCASESIZED PRINTER FOR USE WITH ITS POWERBOOK PERSONAL COMPUTERS THAT PRODUCES LASERQUALITY PRINTING THE PORTABLE STYLEWRITER PRINTER WILL SELL FOR A SUGGESTED 439 AN AUTOMATED PAPER FEEDER WILL COST AN ADDITIONAL 85 THE BATTERYPOWERED PRINTER CAN PRINT 55 PAGES BETWEEN CHARGES AND WEIGHS 45 POUNDS INCLUDING THE BATTERY 9306290145 930629 MARKETING & MEDIA ADVERTISING SMALL AD SHOP ASKS THE HOTSHOTS TO HELP IT GO AFTER THE BIG SHOTS BY KEVIN GOLDMAN SMALL AGENCIES UNITE THAT'S THE CRY FROM A VETERAN MADISON AVENUE EXECUTIVE WHO'S ATTEMPTING THE IMPOSSIBLE TO FORM A LOOSE AFFILIATION OF HOTSHOT CREATIVE ADVERTISING AGENCIES TO TACKLE THE BIG GUYS AND THEIR BIG ACCOUNTS THE EXECUTIVE DICK CALDERHEAD PRESIDENT OF THE SMALL NEW YORK SHOP CALDERHEAD & PHIN BEGAN SENDING UNSOLICITED FAX MESSAGES TO 10 AGENCIES THIS MONTH HOPING TO INTEREST THEM IN JOINING CREATIVE FORCES TO TRY TO STEAL THE PEPSI ACCOUNT FROM AGENCY GIANT BBDO IN HIS DISPATCHES MR CALDERHEAD 57 YEARS OLD CALLED THE PLAN THE PEPSI CHALLENGE A REFERENCE TO THE HIGHLY SUCCESSFUL BBDO CAMPAIGN THAT HELPED BOLSTER PEPSICO'S FLAGSHIP SOFT DRINK SEVERAL YEARS AGO THE AGENCIES MR CALDERHEAD PURSUED INCLUDED AMMIRATI & PURIS CHIAT/DAY FALLON MCELLIGOTT GOODBY BERLIN & SILVERSTEIN AND BORDERS PERRIN & NORRANDER THE IDEA BEHIND THIS PLAN IS THAT MANY HEADS ARE BETTER THAN ONE WE HAVE A GROUP OF AGENCIES WHO ARE CREATIVELY SUPERIOR TO SOME BIG AGENCIES SAYS MR CALDERHEAD WHO TOILED AT AMONG OTHERS THE FORMER DOYLE DANE BERNBACH AND CAMPBELL EWALD AS A COPYWRITER AND DESIGNER BEFORE FOUNDING CALDERHEAD & PHIN IN 1980 CALDERHEAD ISN'T EXACTLY KNOWN AS A HOTBED OF CREATIVITY ITS CLIENTS CONSIST MOSTLY OF FINANCIAL SERVICES FIRMS SUCH AS WILLIS & CORROON AND INCLUDE TIMES MIRROR'S MAGAZINE GROUPS AS WELL THE GENESIS OF THE IDEA MR CALDERHEAD SAYS CAME FROM WATCHING HOLLYWOOD POWER BROKER MICHAEL OVITZ IN ACTION MR OVITZ WRESTED CREATIVE CONTROL OF THE COCACOLA ACCOUNT AWAY FROM INTERPUBLIC GROUP'S MCCANNERICKSON BY HAVING CLIENTS OF HIS CREATIVE ARTISTS AGENCY PRODUCE A SLEW OF SPOTS FOR THE SOFT DRINK OVITZ TOOK A GROUP OF PEOPLE FROM DIFFERENT PLACES AND HAD THEM ALL PRODUCE DIFFERENT COKE SPOTS EXPLAINS MR CALDERHEAD WE CAN DO THE SAME WITH CREATIVE PEOPLE FROM DIFFERENT AGENCIES MR CALDERHEAD SAYS HIS PLAN IS A TRIAL BALLOON WHICH MAY OR MAY NOT BE VIABLE AS THE JAPANESE SAY THE TALLEST NAIL GETS HAMMERED HARDEST' FURTHERMORE HE SAYS HIS AGENCY WANTED TO KEEP A LOW PROFILE AND THUS HADN'T ENTERED AN AWARD COMPETITION IN A DECADE HE DISMISSES AS UNFAIR ANY CRITICISM DIRECTED AT HIS AGENCY FOR NOT HAVING A REPUTATION FOR CREATIVITY AS FOR HIS PLAN TO POOL CREATIVE SOURCES THE OBSTACLES ARE ENORMOUS FOR ONE THING PEPSI ISN'T DISSATISFIED WITH OMNICOM GROUP'S BBDO A SPOKESWOMAN FOR THE PURCHASE NY COLA COMPANY SAYS FOR ANOTHER SOME OF THE AGENCIES PURSUED BY MR CALDERHEAD WHILE FLATTERED BY THE OFFER DON'T SEEM TO BE TAKING HIM ALL THAT SERIOUSLY IN ADDITION TO THEIR SKEPTICISM MR CALDERHEAD IS UP AGAINST ANOTHER INCLINATION OF SMALL SHOPS THEIR PRIDE ALL BUT PROHIBITS THEM FROM SHARING CREATIVE CREDITS WITH RIVAL AGENCIES YOU'D HAVE TO GET AN AUDITORIUM TO HANDLE ALL THE EGOS ALONE SAYS PATRICK R FALLON CHAIRMAN OF FALLON MCELLIGOTT IN MINNEAPOLIS WHEN MARTIN PURIS PRESIDENT AND CHIEF EXECUTIVE OFFICER AT AMMIRATI & PURIS RECEIVED THE CALDERHEAD MEMO HE SAYS I LOOKED AT THE FAX SORT OF CHUCKLED AND MOVED ON AN EXECUTIVE AT SAN FRANCISCOBASED GOODBY BERLIN SAYS THE CALDERHEAD PROPOSAL ISN'T ANYTHING THE AGENCY IS FORMALLY CONSIDERING BILL BORDERS PRESIDENT AND DIRECTOR OF CREATIVE SERVICES AT BORDERS PERRIN & NORRANDER THINKS MR CALDERHEAD IS HATCHING AN AMUSING IDEA BUT I DON'T KNOW IF IT WILL GATHER ENOUGH STEAM TO GENERATE ANY ACTIVITY ALTHOUGH MR BORDERS ADMITS HE IS SKEPTICAL HE HOPES SOMETHING COMES FROM IT AFTER ALL HIS SHOP IS BASED IN PORTLAND ORE AND WOULD BENEFIT FROM BEING PAIRED WITH MARQUEE AGENCIES IN MANHATTAN MR CALDERHEAD CONTINUES HIS SELFIMPOSED MISSION WITH APLOMB OVER THE PAST SEVERAL WEEKS HE HAS TAKEN OUT ADS IN THE TRADE PUBLICATION ADWEEK TO CONDEMN MADISON AVENUE'S CREATIVE LANDSCAPE THE HEADLINE OF ONE AD READS THE DAY NEW YORK DIED OVER A SKULLANDCROSSBONES DRAWING AS THE COPY DECRIES THE STATE OF NEW YORK AD AGENCIES IN THE AD MR CALDERHEAD BLAMED THE METERHEAD MANAGERS AT OUR MEGA AGENCIES HE SIGNED THE AD DICK CALDERHEAD DEDICATED TO THE ART OF GREAT ADVERTISING WHILE SMALL AGENCIES AREN'T EMBRACING MR CALDERHEAD'S CONCEPT LARGE SHOPS ARE DOWNRIGHT OFFENDED IN HIS STAFF MEMO LAST WEEK KEITH REINHARD CHAIRMAN OF OMNICOM'S DDB NEEDHAM SAID HE WAS PARTICULARLY ANGRY AT MR CALDERHEAD AND WEARY OF SMALL AND DISGRUNTLED OPERATORS WHO DENOUNCE ALL BIG AGENCIES IN THEIR OWN SELFINTEREST I WENT BACK TO SEE HOW OMNICOM COMPARES TO THE CALDERHEAD AGENCY IN THE NUMBER OF CREATIVE AWARDS SINCE OUR BIRTH SEVEN YEARS AGO THE TALLY METERHEADS 1139 CALDERHEADS 0 EVEN SO MR CALDERHEAD SAYS HE'S SIMPLY PLACING HIS NOVEL PLAN OUT THERE WHERE IT SITS LIKE A TICKING TIME BOMB FOR NOW HE IS BACKING OFF HIS CALL FOR TARGETING THE PEPSI ACCOUNT EARLIER THIS MONTH PEPSI WAS JOLTED BY REPORTS WHICH WERE DISMISSED AS A HOAX THAT CONSUMERS FOUND HYPODERMIC NEEDLES IN SOME SODA CANS THE COMPANY HAD TO TAKE OUT ADS TO QUELL THE CONCERNS IN A FAX TO HIS 10 CHOSEN AGENCIES MR CALDERHEAD SAYS THIS IS HARDLY THE TIME TO GO ROLLING INTO PURCHASE NY WITH A DARING NEW WAY TO PEP UP PEPSI'S ADVERTISING BUT IN AN INTERVIEW YESTERDAY MR CALDERHEAD ADDED THAT HE COULD ALWAYS TARGET ANOTHER CLIENT THERE IS NO REASON NOT TO GO FORWARD WITH THIS RICHARD D THOMSON FORMER CHAIRMAN AND CHIEF EXECUTIVE OF SAATCHI & SAATCHI CO'S RUMRILLHOYT UNIT IS SUING THE HOLDING COMPANY FOR MORE THAN 3 MILLION ALLEGING HE WAS FIRED BECAUSE OF HIS AGE MR THOMSON WHO WAS OUSTED FROM HIS POST AT THE ROCHESTER NY AGENCY IN JANUARY 1992 AT THE AGE OF 55 FILED SUIT IN US DISTRICT COURT IN WESTERN NEW YORK HE ALLEGES THAT HE HAD BEGUN INQUIRING INTO THE AMOUNT OF PENSION BENEFITS HE WOULD BE OWED UPON RETIREMENT SAATCHI HE SAYS SUBSEQUENTLY NOTIFIED HIM BY FAX THAT HIS CONTRACT WOULDN'T BE RENEWED THE SUIT NAMES AS DEFENDANTS SAATCHI & SAATCHI'S US OPERATIONS RICHARD O'BRIEN DEPUTY VICE CHAIRMAN AND ROBERT KENNEDY THEN CHIEF FINANCIAL OFFICER AND NOW SAATCHI'S NORTH AMERICAN CHAIRMAN SAATCHI PREVIOUSLY SAID MR THOMSON RESIGNED BECAUSE OF PHILOSOPHICAL DIFFERENCES SAATCHI GENERAL COUNSEL MICHAEL KOPCSAK SAID THERE WAS NO MERIT TO THE AGEBIAS CHARGES ADDING THAT ALTHOUGH MR THOMSON HAD RECEIVED A GENEROUS SEVERANCE PACKAGE HE OBVIOUSLY DIDN'T THINK IT WAS GENEROUS ENOUGH THREE OTHER AGEBIAS LAWSUITS ARE PENDING AGAINST SAATCHI AND ANOTHER OF ITS UNITS AC&R ADVERTISING OF NEW YORK FILED BY EMPLOYEES WHO SAY THEY WERE WRONGFULLY DISMISSED BECAUSE OF AGE ANHEUSERBUSCH COS SAID TWO AGENCIES THE BIG NEW YORK AGENCY GREY ADVERTISING AND THE TINY ST LOUIS SHOP GLENNON & CO ARE WORKING ON SPECIAL ASSIGNMENTS WHICH INDUSTRY EXECUTIVES SAID ARE NEW PRODUCTS GREY ADVERTISING IS WORKING ON ADS FOR A NEW PALECOLORED BEER ACCORDING TO EXECUTIVES THE NEW BREW COULD BE ANHEUSERBUSCH'S ANSWER TO MILLER CLEAR FROM PHILIP MORRIS'S MILLER BREWING AND GLENNON & CO IS WORKING ON A PROJECT FOR MICHELOB GOLDEN DRAFT AN ANHEUSER SPOKESMAN SAID EVEN THOUGH THE CHICAGO OFFICE OF DDB NEEDHAM HAD BEEN THE OFFICIAL AGENCY FOR THAT TESTMARKET PRODUCT A SPOKESWOMAN FOR DDB'S CHICAGO OPERATIONS SAID THE AGENCY HAD CREATED ADS FOR THE GOLDEN DRAFT AND AS FAR AS I KNOW WE STILL DO A SPOKESMAN FOR ANHEUSER HOWEVER DECLINED TO COMMENT ON DDB'S STATUS ON THE ACCOUNT REVIEW HATTORI SEIKO CO'S SEIKO CORP MAHWAH NJ IS REVIEWING ITS ESTIMATED 10 MILLION ACCOUNT CURRENTLY AT SAATCHI & SAATCHI'S AC&R ADVERTISING OF NEW YORK THE REVIEW FOLLOWS SEIKO'S RECENT DECISION TO PULL THE PULSAR AND JAZ/PARIS ACCOUNTS FROM AC&R SEPARATELY OFFICIALS AT AC&R AND ITS IMMEDIATE PARENT AGENCY BACKER SPIELVOGEL BATES DENIED A REPORT IN ADVERTISING AGE THAT THE AGENCY HAD MADE A PROPOSAL TO BUY ITSELF BACK FROM SAATCHI THAT WAS THE FIRST TIME I HEARD ANYTHING ABOUT IT SAID HARRY KOENIG AC&R VICE CHAIRMAN AC&R ISN'T FOR SALE SAID BACKER'S CHAIRMAN CARL SPIELVOGEL DIED GARY SUSNJARA VICE PRESIDENT OF MARKETING AT SARA LEE CORP AND FORMER PRESIDENT OF NORTH AMERICAN OPERATIONS AT SAATCHI & SAATCHI ADVERTISING DIED SUNDAY AFTER A LONG ILLNESS 9306290144 930629 MUTUAL FUND OLDTIMERS FIGURE A PENNY SAVED IS A PENNY SAVED BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL BILLIONS OF DOLLARS MAY BE POURING INTO THE MUTUALFUND INDUSTRY BUT OLDTIMERS IN THE FUND BUSINESS STILL SEEM TO COMPETE OVER WHO CAN PINCH A PENNY THE HARDEST IN THIS MUTUALFUND CHEAP CHIC PAGEANT IT'S PRETTY CLEAR WHO THE FINALISTS ARE SECOND RUNNERUP IS JAMES E STOWERS JR FOUNDER AND CHAIRMAN OF TWENTIETH CENTURY MUTUAL FUNDS IN KANSAS CITY MO WHO HAS BEEN BROWNBAGGING A PEANUTBUTTERANDJELLY SANDWICH TO WORK FOR AT LEAST 20 YEARS MR STOWERS WHOSE FUND GROUP MANAGES 22 BILLION FIGURES HE SAVES 2250 A MONTH BY USING A RAZOR BLADE A FEW EXTRA DAYS THOUGH THAT FIGURE DOESN'T INCLUDE THE COST OF BANDAIDS FIRST RUNNERUP SPORTING AN 11 CREW CUT THAT MAKES ROSS PEROT LOOK ALMOST STYLISH IS JOHN C BOGLE FOUNDER AND CHAIRMAN OF VANGUARD GROUP IN VALLEY FORGE PA HE OWNS ONLY ONE BELT AND FAVORS RED WOOL TIES THEY DON'T PICK UP STAINS LIKE SILK DOES HE EXPLAINS SO YOU ONLY GET THEM CLEANED EVERY TWO OR THREE YEARS AND NOW THE ENVELOPE PLEASE THE WINNER OF THE CHEAP CHIC PAGEANT IS KURT LINDNER FOUNDER OF THE LINDNER FUNDS IN ST LOUIS MR LINDNER HAS A LITTLE WOODEN BOX ON HIS DESK LABELED SPRINGS WHEN HIS PLASTIC RETRACTABLE BALLPOINT PEN RUNS OUT OF INK HE PRIES THE SPRINGS OFF THE OLD CARTRIDGES AND SAVES THEM IN THE BOX WHY WHEN CHANGING TO A NEW INK CARTRIDGE SOMETIMES I WOULD LOSE THE SPRING MR LINDNER SAYS ALL OF THESE MEN ARE MILLIONAIRES SEVERAL TIMES OVER BUT IN CONTRAST TO INVESTMENT BANKERS SAYS ERIC KOBREN PUBLISHER OF FIDELITY INSIGHT A NEWSLETTER YOU DON'T SEE MUTUALFUND EXECUTIVES RUNNING AROUND IN 200000 SPORTS CARS AND BUYING A YACHT OR AT LEAST YOU DIDN'T NOWADAYS SOME OF THE YOUNGER FUNDINDUSTRY EXECUTIVES ARE STARTING TO SPEND MONEY MORE LAVISHLY A WORRISOME TREND TO INDUSTRY VETERANS WHO SAY A LACK OF THRIFT HAS FATTENED EXPENSES AT MUTUALFUND COMPANIES AND THUS PUT OUT THE WELCOME MAT FOR COMPETITORS SUCH AS BANKRUN FUNDS THE REASON WHY YOU FIND VERY FEW SECURITIES ANALYSTS WHO ARE WEALTHY IS THAT THEY NEVER WERE THRIFTY SAYS SIR JOHN TEMPLETON FOUNDER OF TEMPLETON FUNDS SIR JOHN LAMENTS THE DECLINE OF THRIFTINESS WHICH IS ONE OF MAIN REASONS WHY AMERICA HAS NOT FORGED AHEAD AS RAPIDLY AS JAPAN AMONG SOME MUTUALFUND PIONEERS THRIFT EXTENDS TO EVERY CORNER OF THEIR PERSONAL LIVES EVEN TO THE BUSINESSES THEY BUILT RUNNING THE LINDNER FUNDS COSTS ITS SHAREHOLDERS LESS THAN A PENNY 077 CENT TO BE PRECISE FOR EVERY DOLLAR INVESTED THAT'S ABOUT HALF THE COST OF RUNNING STOCK FUNDS ON AVERAGE ACCORDING TO LIPPER ANALYTICAL SERVICES AT VANGUARD MR BOGLE KEEPS THE EXPENSES EVEN LOWER AT ABOUT ONEFOURTH THE AVERAGE COST FOR STOCK FUNDS THE OPERATING EXPENSE AT TWENTIETH CENTURY STOCK FUNDS IS HIGHER AT ABOUT 111 A YEAR STILL LESS HOWEVER THAN THE AVERAGE FOR STOCK FUNDS WE'VE NOT TRIED TO BE THE LOWEST COST WE'VE TRIED TO BE THE BEST MR STOWERS SAYS BUT HE DOES MAKE IT EASY FOR PENNYPINCHING INVESTORS TO GET INTO TWENTIETH CENTURY FUNDS MOST FUNDS REQUIRE INVESTORS TO PLUNK DOWN 1000 TO 3000 TO OPEN AN ACCOUNT MR STOWERS ALLOWS INVESTORS INTO MOST TWENTIETH CENTURY FUNDS FOR 25 A MONTH ABOUT WHAT HE SAVES ON RAZOR BLADES BUT TIGHTFISTED IS HARDLY THE WORD FOR MANY OF THE YOUNGER FUND EXECUTIVES COMPETITORS ARE BUILDING HUGE BUILDINGS MONUMENTS WITH THE ASSETS THEY HAVE UNDER MANAGEMENT SAYS ERIC RYBACK MR LINDNER'S FORMER PROTEGE AND NOW MANAGER OF THE LINDNER FUNDS STRONG FUNDS FOR INSTANCE BUILT A LOWSLUNG CANTILEVERED MODERNISTIC HEADQUARTERS OUTSIDE MILWAUKEE IN 1987 THAT ONE ENVIOUS COMPETITOR DUBS THE TAJ MAHAL A STRONG SPOKESWOMAN SAYS THE HEADQUARTERS WAS BEGUN FAR BEFORE WE KNEW THAT MUTUAL FUNDS WOULD BE THE BIG BUSINESS THEY ARE TODAY ADDING A LOT OF PEOPLE AROUND HERE ARE STILL REAL CHEAP DAVE H WILLIAMS CHAIRMAN OF ALLIANCE CAPITAL MANAGEMENT LP OWNS ONE OF THE LARGEST COLLECTIONS OF BLACKANDWHITE PRINTS OUTSIDE A MUSEUM AND WAS RECENTLY ELECTED TO THE BOARD OF THE METROPOLITAN MUSEUM OF ART IN NEW YORK AN ALLIANCE SPOKESWOMAN SAYS MR WILLIAMS BEGAN COLLECTING PRINTS BECAUSE THEY WERE THE ONLY THING HE COULD AFFORD I GET WORRIED WHEN I GO TO A FUND COMPANY AND THEY'RE SPENDING A SMALL FORTUNE ON ARTWORK SAYS DON PHILLIPS PUBLISHER OF MORNINGSTAR MUTUAL FUNDS A CHICAGO NEWSLETTER YOU DON'T WANT YOUR FUND COMPANY TO BE TOO OPULENT BECAUSE IT'S COMING OUT OF YOUR POCKET OPERATING EXPENSES AT STRONG FUNDS ARE 148 OF ASSETS ABOUT AVERAGE EXPENSES AT ALLIANCE ARE 203 CONSIDERABLY ABOVE AVERAGE FOR STOCK FUNDS DURING THE PAST DECADE THE EXPENSE OF OPERATING MUTUAL FUNDS AN EXPENSE BORNE BY INVESTORS HAS RISEN NOT FALLEN DESPITE THE FLOOD OF NEW MONEY THE INDUSTRY ISN'T AS LEAN AND MEAN AS IT WAS AT THE START OF THE '80S SAYS MR PHILLIPS WHO WORRIES THAT COMPLACENCY IS SETTING IN FOR HIS 60 STAKE IN TEMPLETON GALBRAITH & HANSBERGER LTD SIR JOHN LAST YEAR WAS PAID 437 MILLION BY FRANKLIN RESOURCES CORP BUT MARK HOLOWESKO A TEMPLETON FUND MANAGER SAYS SIR JOHN REUSES COPIER PAPER FOR NOTES AND BUYS USED CARS SIR JOHN HAS PRIDED HIMSELF IN ACTUALLY MAKING MONEY ON CARS WHEN HE TURNS THEM OVER SAYS MR HOLOWESKO HE ADDS THAT I'M VERY HESITANT TO ARRIVE AT WORK IN A FANCY NEW CAR SIR JOHN INSISTS THAT NOWADAYS HE DOES BUY NEW CARS THOUGH IT'S TRUE THAT FOR THE FIRST FIVE AUTOMOBILES I BOUGHT I NEVER PAID OVER 200 SIR JOHN ADDS THAT HE GIVES MORE THAN 5 MILLION A YEAR TO CHARITIES MANY FUND COMPANIES HAVE MADE CONCESSIONS TO THEIR RAPID GROWTH BAHAMASBASED TEMPLETON FUNDS MOVED RECENTLY TO NEW OFFICES LEAVING CRAMPED QUARTERS IN A SHOPPING MALL MR HOLOWESKO SAYS HIS FIRST OFFICE AT TEMPLETON A DECADE AGO WAS IN A WINDOWLESS ATTIC ABOVE THE MALL ALBEIT WITH TWO SKYLIGHTS LINDNER FUNDS MOVED TO NEW QUARTERS THREE YEARS AGO THE PRIOR OFFICES ON A TOP FLOOR CONSTANTLY LEAKED SAYS MR RYBACK WHO IN JANUARY BOUGHT THE MANAGEMENT COMPANY OF LINDNER FUNDS FROM MR LINDNER AFTER WORKING FOR HIM FOR A DECADE YOU COULD WALK INTO KURT'S OFFICE ON A VERY RAINY DAY AND SEE BUCKETS ON THE FLOOR BUT THE OLD OFFICES DIDN'T HURT THE FUNDS' PERFORMANCE MR LINDNER AND MR RYBACK ARE VALUE INVESTORS BUYING STOCKS THAT APPEAR CHEAP BY SUCH YARDSTICKS AS EARNINGS OR BOOK VALUE FOR THE 10 YEARS THROUGH APRIL 30 LINDNER FUND AND LINDNER DIVIDEND FUND GAINED JUST ABOUT AS MUCH AS THE STANDARD & POOR'S 500STOCK INDEX BUT WITH A CONSIDERABLY SMOOTHER RIDE MR LINDNER BOUND TO A WHEELCHAIR BY MULTIPLE SCLEROSIS STILL COMES TO THE OFFICE TO MANAGE HIS OWN INVESTMENTS AT HOME MR LINDNER HASN'T MADE TOO MANY CHANGES OVER THE YEARS IT'S LIKE WALKING INTO THE 1950S MR RYBACK SAYS WHY BUY FRIVOLITIES LIKE A COLOR TV MR LINDNER EXPLAINS WHEN I RARELY WATCH THE BLACKANDWHITE THAT I DO HAVE MR BOGLE OF VANGUARD BECAME DEVOTED TO THRIFTINESS AS A BOY DURING THE DEPRESSION HE WAS BORN TO A WEALTHY FAMILY AND HIS GRANDFATHER WAS A FOUNDER OF AMERICAN CAN NOW PART OF PRIMERICA CORP FOR REASONS THAT AREN'T CLEAR HE SAYS SUDDENLY THE FAMILY FORTUNE DRIED UP AND WE DIDN'T HAVE OUR NICE MONEY ANYMORE MR BOGLE'S PARSIMONY MANIFESTS ITSELF WHEN HE TRAVELS HE ONCE SPENT SEVERAL MINUTES JAWBONING A HOTEL CLERK INTO GIVING HIM THE CHEAPEST ROOM IN A HOUSE THEN HE DEMANDED A CORPORATE DISCOUNT MR BOGLE TURNED TO APOLOGIZE FOR DELAYING THE MAN STANDING BEHIND HIM WHO TURNED OUT TO BE A VANGUARD SHAREHOLDER MR STOWERS OF TWENTIETH CENTURY LIKE MR BOGLE AND SIR JOHN TENDS TO EXPOUND TO ANYONE WHO WILL LISTEN ABOUT THE OLDFASHIONED VIRTUES OF THRIFT AND CHARACTER MR STOWERS RECENTLY WROTE A BOOK ON THE SUBJECT WITH TIPS ON WHERE TO FIND MONEY TO INVEST YOU CAN ALWAYS FIND MONEY IF YOU WANT TO DO IT MR STOWERS SAYS THAT'S THE REASON I CAME UP WITH SAVING MONEY ON THE RAZOR BLADES 9306290143 930629 FORTUNATELY MANY JAPANESE HAVE TRAINING IN THE ART OF SELFDEFENSE BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S ENGLISHLANGUAGE INSTRUCTORS NOW HAVE BOOKS THAT TEACH STUDENTS HOW TO TALK TURKEY ENGLISH TO MAKE YOU OR BREAK YOU IS AN ASSERTIVE SERIES WITH SUCH USEFUL STATEMENTS AS I UNDERSTAND YOUR ANGER OVER LOSING A FAMILY MEMBER AT PEARL HARBOR AND WE HAVE THE RIGHT TO DO BUSINESS IN THE US MOST LANGUAGE BOOKS ARE OUT OF TOUCH WITH REALITY SAYS FRED YOSHINO AUTHOR OF THE TWOFISTED TEXTS IT'S TIME TO FACE THE ISSUES THE SERIES IS DESIGNED TO HELP JAPANESE BUSINESSPEOPLE COPE IN AMERICA THROUGH SUCH WORKADAY PHRASES AS YOU HAVE TO WATCH HER VERY CAREFULLY AND MAKE SURE SHE DOESN'T GET OUT OF LINE WHEN DEALING WITH RUMORS ABOUT A MALE SUBORDINATE'S SEX LIFE IT ADVISES AGAINST THREATENING DISMISSAL INSTEAD TRY SAYING THIS COMPANY WOULD LOSE CLIENTS IF ANYBODY ON THE OUTSIDE KNEW WE HARBORED HOMOSEXUALS LATER IN THE CONVERSATION CASUALLY TOSS IN YOU SURE I COULDN'T INTEREST YOU IN A WOMAN IF SOMEONE MENTIONS AFFIRMATIVE ACTION POINT OUT THAT YOUR COMPANY EMPLOYS JAPANESE NATIONALS IF SOMEONE FROM THE NEWS MEDIA PHONES IT'S IMPORTANT TO TAKE THE CALL AND SAY WE'RE CONFIDENT THE UNION WILL BE REJECTED WHILE ENGLISH TO MAKE YOU OR BREAK YOU MAY MINIMIZE BROKEN ENGLISH DOESN'T THE POWER PARLEY RISK GIVING STUDENTS BROKEN TEETH THAT DEPENDS ON HOW YOUR CONVERSATIONAL PARTNER RESPONDS MR YOSHINO SAYS BUT YOU'VE GOT TO BE ASSERTIVE PITY THE JAPANESE STUDENT WHOSE CONVERSATIONAL PARTNER IS A US CUSTOMS OFFICIAL ESPECIALLY IF HE'S READING CHAPTER 6 ROLL ME A JOINT OF NEW YORK ENGLISH ANOTHER NEW TOUGHTALKING ENGLISH PHRASE BOOK FOR JAPANESE THIS FORCEFUL VOLUME WITH A COVER DRAWING OF A KNIFE STUCK INTO A BLEEDING APPLE AIMS TO MAKE UNASSUMING JAPANESE TOURISTS COMFORTABLE WITH TERMS LIKE SUCK FACE CHILL OUT AND YOU LYING BAG OF WELL YOU GET THE IDEA IT'S THE WAY PEOPLE REALLY COMMUNICATE SAYS AUTHOR PHILIP SILVERSTEIN THE TRUTH WILL SET YOU FREE A GLANCE THROUGH MR SILVERSTEIN'S HARDBOILED HANDBOOK SHOWS HE PROBABLY IS AS CLAIMED A NATIVE NEW YORKER AMONG THE CHAPTER TITLES ANY STRIP JOINTS AROUND HERE IT'S NOT MY FAULT AND GET OUTTA MY FACE 9306290142 930629 MEDICINE TO AVOID COST OF US PRESCRIPTION DRUGS MORE AMERICANS SHOP SOUTH OF THE BORDER BY DIANNE SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL CIUDAD JUAREZ MEXICO ALMOST DAILY 89YEAROLD PASTOR TORRES PEDALS HIS RICKETY BICYCLE OVER THE INTERNATIONAL BRIDGE TO BUY MEDICINES ON THE CHEAP HERE FOR ELDERLY CHUMS BACK HOME IN EL PASO TEXAS MR TORRES'S RIO GRANDE DRUG RUN SPOTLIGHTS A SAD DIVIDE BETWEEN THE HAVES AND HAVENOTS OF HEALTH CARE MORE AND MORE BUDGETSTRAINED AMERICANS PURCHASE PRICECONTROLLED MEDICINES IN MEXICAN BORDER TOWNS AS AN ANTIDOTE FOR THEIR ESCALATING MEDICAL BILLS SOME TRAVEL FROM CITIES FAR FROM THE MEXICAN BORDER AND THE PRESCRIPTION DRUGS ARE OFTEN IDENTICAL TO THEIR US VERSIONS SAVE FOR THE LABEL OF A MEXICAN SUBSIDIARY OF THE US EUROPEAN OR JAPANESE MANUFACTURER MANY OF MY FRIENDS JUST DON'T HAVE ENOUGH MONEY TO BUY THEIR MEDICINES IN THE US EXPLAINS MR TORRES A WIRY RETIRED MUSICIAN WHO SOMETIMES PICKS UP MEDICATIONS FOR HIMSELF IN MEXICO EACH DAY BY 8 AM HIS PHONE PEALS WITH NEW ORDERS HELPING HIS LESSMOBILE FRIENDS IS NO BOTHER HE SAYS BECAUSE WHAT'S IMPORTANT IS DOING RIGHT BY THE PEOPLE FOR HIS EFFORTS HE OCCASIONALLY GETS TIPS CATERING TO MR TORRES AND OTHER AMERICANS LIKE HIM THOUSANDS OF FARMACIAS JUST SOUTH OF THE USMEXICO BORDER OPERATE AS VIRTUAL DOCINTHEBOXES WHERE ADVICE IS FREE SERVICE IS FAST AND A PHYSICIAN'S PRESCRIPTION IS OFTEN A NUISANCE INSPIRING THE SPENDING ARE US PHARMACEUTICAL PRICES THAT SURGED ANNUALLY DURING THE 1980S BY TWO TO THREE TIMES THE INFLATION RATE I RESENT THE LEGAL EXTORTION GRIPES FRED ORTIZ AN EL PASO ENTERTAINMENT BOOKER WHO SAYS HE CAN AFFORD US PRICES BUT REGULARLY TRAVELS SOUTH FOR MEDICINES SUCH GRIPES HELP MEXICAN PHARMACIES GET A GRIP ON PROFITS AT THE FARMACIA DEL RIO HERE BOOMING BUSINESS HAS SPARKED THE OPENING OF A THIRD STORE SAYS PHARMACIST MARCO CARREON MORE THAN TWOTHIRDS OF THE CLIENTS COME FROM THE US MOSTLY THEY ARE PEOPLE WHOSE MACHINERY IS GETTING OLD SAYS THE BILINGUAL MR CARREON WHOSE US CUSTOMERS SOMETIMES BUY A YEAR'S SUPPLY OF MEDICINES OVER A COUNTER CLUTTERED WITH MIRACLE WATER FROM A MEXICAN SPRING AND FATBURNING OIL STAND ROWS OF CONVENTIONAL REMEDIES FROM AMPICILLIN FOR FLUS TO ZANTAC FOR ULCERS THE SWIFTEST SELLERS ZANTAC FROM GLAXO HOLDINGS PLC AND ANOTHER ULCER DRUG SMITHKLINE BEECHAM PLC'S TAGAMET EVERYONE IN THE US HAS AN ULCER OFFERS MR CARREON NONE OF THIS CHEERS MR CARREON'S EL PASO COUNTERPART BARRY COLEMAN FIVE YEARS AGO THE DRUGGIST OWNED 10 PHARMACIES TODAY ONLY SEVEN OPERATE BECAUSE OF MEXICAN COMPETITION AND THE STEEP DISCOUNTS PHARMACEUTICAL FIRMS GIVE VOLUME BUYERS THE US HAS THE HIGHESTPRICED DRUGS IN THE WORLD COMPLAINS MR COLEMAN ADDING MEXICO HAS HAD THE GOOD SENSE TO IMPOSE PRICE CONTROLS FOR MEXICO THOSE CONTROLS BEGAN DURING WORLD WAR II WHEN A TEMPORARY PRICECONTROL LAW WAS PASSED TO ENSURE MEXICANS COULD BUY MEDICINES AT USUAL PRICES IF SHORTAGES OCCURRED EXPLAINS ERNESTO AMTMANN A MEXICO CITY PHARMACEUTICAL MAKER IN MEXICO WE SAY THERE IS NOTHING MORE PERMANENT THAN SOMETHING TEMPORARY HE GRUMBLES DR AMTMANN WANTS THE LAW DROPPED HIGHER PROFITS COULD BE PLOWED BACK INTO RESEARCH AND DEVELOPMENT HE ARGUES WE'RE NOT SELFSUFFICIENT AS A CONSEQUENCE OF THE PRICE CONTROLS SAYS DR AMTMANN WHO HOLDS LICENSES FROM SUCH GIANTS AS BRITAIN'S SMITHKLINE BEECHAM WE DEPEND LARGELY ON IMPORTED PATENTS IN THE US PHARMACEUTICAL HOUSES SAY THEIR LOFTY PRICES SUSTAIN RESEARCH AND MARKETING A DRUG CAN COST MORE THAN 300 MILLION THERE IS A HUGE FIXED COST THAT HAS TO BE PAID BY SOMEONE SAYS LEIGH THOMPSON CHIEF SCIENTIFIC OFFICER FOR ELI LILLY & CO A PHARMACEUTICAL COMPANY WHOSE PRODUCTS INCLUDE THE ANTIDEPRESSANT PROZAC DR THOMPSON NOTES THAT LILLY HAS RAISED ITS PRICES ONLY 4 IN THE PAST FOUR YEARS AND THAT RESEARCH INVESTMENT HAS INCREASED 15 ANNUALLY MERCK & CO THE WORLD'S LARGEST PHARMACEUTICAL MAKER SAYS IT HAS ALSO HELD PRICES DOWN SINCE THE LATE '80S NEVERTHELESS THE PRICE INDEX FOR PRESCRIPTION DRUGS ROSE NEARLY 6 IN 1992 AND 94 IN 1991 ACCORDING TO THE US BUREAU OF LABOR STATISTICS THE RESULTING ACROSSTHEBORDERBUYING TREND COULD ACCELERATE WITH A PENDING NORTH AMERICAN FREE TRADE AGREEMENT AT PRESENT NOWHERE ARE THE MEDICINE EXPEDITIONS MORE EVIDENT THAN IN THE EL PASOCIUDAD JUAREZ METROPOLIS IN THE MIDDLE OF THE 2000MILE USMEXICO BORDER SO PERVASIVE IS THE ACTIVITY THAT EL PASO'S TOP POLITICO COUNTY JUDGE ALICIA CHACON GETS HER FLU SHOTS IN JUAREZ THE COUNTY HOSPITAL SENDS ITS POOREST PATIENTS SOUTH FOR BARGAIN DRUGS AND LOCAL BUSINESS CONSULTANT DON NIBBE JOKES YOU WOULD HAVE TO PUT THE WHOLE TOWN OF EL PASO IN JAIL FOR THAT ONE MUCH OF THE TRADE THOUGH IS LEGAL US CUSTOMS OFFICIALS TECHNICALLY REQUIRE A US OR MEXICAN PHYSICIAN'S PRESCRIPTION FOR THE CONSUMER TRAVELING WITH THE MEDICINES BUT MANY MEXICAN PHARMACIES DOLE OUT DRUGS WITHOUT PRESCRIPTION FOR ALL BUT CONTROLLED SUBSTANCES SUCH AS VALIUM AND DARVON AND MANY CONSUMERS KEEP MUM IN THE FACE OF A US CUSTOMS AGENT ASKING ANYTHING TO DECLARE PHOTOGRAPHER GABRIEL RIVERA ROUTINELY CROSSES THE RIVER FOR HIS WIFE'S BIRTHCONTROL PILLS AND HIS ASTHMA INHALER THE BIRTHCONTROL PILLS NORDETTE21 FROM WYETHAYERST LABORATORIES INC A UNIT OF AMERICAN HOME PRODUCTS CORP COST ABOUT A 10TH OF THEIR US PRICE HIS VENTOLIN INHALER MADE BY A GLAXO UNIT COSTS 650 OR ABOUT A THIRD OF ITS US PRICE I DECLARE IT AT CUSTOMS AND I'VE HAD NO PROBLEM MR RIVERA SAYS I HEARD YOU NEED A PRESCRIPTION BUT NO ONE ASKS A US CUSTOMS SPOKESWOMAN THOUGH SAYS THOSE SMUGGLING MEDICINES INTO THE US WITHOUT A PRESCRIPTION WILL HAVE THE DRUGS SEIZED AND COULD FACE AN ADMINISTRATIVE PENALTY AND ARREST DEPENDING ON THE POTENCY OF THE MEDICINE PETE DUARTE AN EL PASO HEALTHCARE ADMINISTRATOR SAW PHARMACEUTICALS RISE AT THE RATE OF 18 TO 25 ANNUALLY AT HIS HEALTH CLINIC A FEW BLOCKS FROM THE RIO GRANDE NOW AS A COUNTY HOSPITAL ADMINISTRATOR FOR THE LAST YEAR THE PROBLEM CONTINUES IT'S VERY COMMON FOR OUR DOCTORS TO TELL PATIENTS YOU CAN GO OVER TO JUAREZ AND GET IT FOR ONE 20TH THE COST SAYS MR DUARTE IT'S GREED CORPORATE GREED A RECENT STUDY BY FAMILIES USA A CONSUMER GROUP BASED IN WASHINGTON DC LABELED THE PRICE DISPARITY A SYMPTOM OF THE FUNDAMENTAL SICKNESS IN AMERICA'S HEALTHCARE SYSTEM THE HEALTHCARE GROUP INTERVIEWED MORE THAN 300 PERSONS IN FOUR BORDER CITIES AND FOUND THAT HALF THE BORDER CROSSERS HAD HEALTH INSURANCE BUT FOR MANY THEIR TOTAL HEALTHCARE BILL IN MEXICO COSTS LESS THAN THEIR US OUTOFPOCKET DEDUCTIBLES AND COPAYMENTS THE GROUP SAID AND A MEXICAN STUDY SAYS DR AMTMANN SHOWS MEXICAN PHARMACEUTICALS ARE A FIFTH THEIR US COST AND ONE 20TH THEIR COST IN JAPAN WHERE PHARMACEUTICAL FIRMS ARE BECOMING GLOBAL POWERHOUSES IN DRUG DEVELOPMENT THUS IT IS NO SURPRISE THAT A RECENT SURVEY BY THE UNIVERSITY OF TEXAS SCHOOL OF PUBLIC HEALTH FOUND THAT FULLY A QUARTER OF MORE THAN 800 IMPOVERISHED TEXAS BORDER RESIDENTS INTERVIEWED CROSSED THE RIVER FOR THEIR MEDICINES SOME US PHARAMACISTS GROUPS AND THE US FOOD AND DRUG ADMINISTRATION THOUGH ARE ISSUING BUYERBEWARE WARNINGS THEY WORRY ABOUT PEOPLE LIKE MARTA LOPEZ AN EL PASO RESIDENT WHO RUSHED HER FEVERISH FOURYEAROLD INTO A CIUDAD JUAREZ PHARMACY RECENTLY THE CHILD WAS GIVEN A 2 PACKAGE OF THE ANTIBIOTIC AMPICILLIN HER DOCTOR IN THE US ONLY GAVE HER ASPIRIN SAYS MS LOPEZ SUCH SELFDIAGNOSIS IS DANGEROUS DOCTORS SAY IF CONSUMERS BUY THE WRONG DRUG OR GET THE WRONG DOSAGE FOR EXAMPLE THE STEROID CORTISONE USED TO TREAT SUCH VARIED AILMENTS AS HEART CONDITIONS AND ACNE IS A NOTORIOUS PROBLEM IF DOSAGES AREN'T ADMINISTERED PROPERLY SAYS JOSE RODRIGUEZ AN EL PASO PHYSICIAN YOU CAN SUPPRESS YOUR ADRENAL GLANDS AND THAT CAN BE LIFETHREATENING HE WARNS 9306290141 930629 WORK & FAMILY BY SUE SHELLENBARGER TWOINCOME COUPLES HAVE SOME OF THE SAME PROBLEMS AS LOWINCOME HEAD START PARENTS IN PREPARING THEIR CHILDREN FOR SCHOOL A RECENT STUDY SHOWS PARENTS IN BOTH GROUPS LACK KNOWLEDGE ABOUT HOW SCHOOLS WORK AND HOW TO TEACH THEIR CHILDREN BASIC SKILLS ACCORDING TO A STUDY BY BRIGHT HORIZONS CHILDREN'S CENTERS A CAMBRIDGE MASS CHILDCARE OPERATOR FOR DUALEARNER COUPLES THOSE FACTORS COMBINED WITH A LACK OF HELPFUL NEIGHBORHOOD TIES AND A SHORTAGE OF TIME TO SOLVE PROBLEMS OFTEN CREATE A SENSE OF PANIC AS THEIR CHILDREN APPROACH KINDERGARTEN THE STUDY FOUND THE FINDINGS HAVE PROMPTED BRIGHT HORIZONS TO START A PARENTEDUCATION PROGRAM AT ITS CENTERS THAT LIKE HEAD START HELPS PARENTS GET INVOLVED IN BUILDING THEIR CHILDREN'S LANGUAGE SKILLS AND TALKING WITH TEACHERS ABOUT THE CHILDREN'S NEEDS ONE OF THE MISTAKES WE MAKE IS TO THINK THAT ONLY POOR FAMILIES ARE HAVING PROBLEMS AND DIFFICULTIES PREPARING THEIR CHILDREN FOR SCHOOL SAYS EDWARD ZIGLER DIRECTOR OF THE YALE UNIVERSITY BUSH CENTER FOR CHILD DEVELOPMENT A FOUNDER OF HEAD START AND AN ADVISER TO BRIGHT HORIZONS THE FACT IS MIDDLECLASS FAMILIES ARE VERY VERY STRESSED PARENTS IN THE STUDY EXPRESSED CONFUSION ABOUT READINESS TESTS AND WEREN'T SURE HOW TO FOSTER BASIC SKILLS AND SPEAK UP FOR THEIR CHILDREN SAYS LINDA LEWI BRIGHT HORIZONS' CORPORATEPROGRAMS CONSULTANT A LACK OF TIME WORSENS THE PROBLEMS KATRINA YOUNG ONE PARENT IN THE STUDY SAYS HER FULLTIME JOB AS A ZONING INSPECTOR IN CHARLOTTE NC DOESN'T GIVE HER MUCH CHANCE TO DROP IN ON THE SCHOOL HER FOURYEAROLD WILL ATTEND IN ALL HONESTY HOW DO YOU KNOW UNLESS YOU'RE THERE DAY TO DAY WHAT KIND OF PROGRAM A SCHOOL HAS MS YOUNG SAYS YOU DO THE BEST YOU CAN AND YOU PRAY MANY LOOK TO PRESCHOOL TEACHERS TO HELP THEM BRIDGE THE GAP SAYS JOAN HEMINWAY A CANTON MASS PARENT AND LAWYER WHO TOOK PART IN THE RESEARCH COMMUNITY HAS TO A GREAT EXTENT FALLEN APART FOR PARENTS SHE SAYS IS A SUPPORT GROUP BY ANOTHER NAME STILL A SUPPORT GROUP IT MAY BE THE ONLY KIND THAT SURVIVES IN THE WORKPLACE IF CARING FOR AGING RELATIVES IS THE TOPIC THOUGH MANY COMPANIES HAVE FOUND SUPPORT GROUPS HELPFUL FOR AIRING WORKPLACE ISSUES SPECIFIC TO WOMEN PARENTS AND GAYS ELDERCARE GROUPS OFTEN FALL FLAT MANY EMPLOYEES RESIST DISCUSSING AGING RELATIVES PARTLY BECAUSE THE EMOTIONS RAISED GUILT LOVE RESENTMENT ANGER FEAR ARE TOO HOT TO HANDLE IN THE WORKPLACE IF I'M ON THE VERGE OF BEING OVERWHELMED THE LAST THING I WANT TO DO IS GO TO A MEETING WHERE EVERYBODY TALKS ABOUT BEING OVERWHELMED AND THEN ZIP IT UP AND GET BACK TO WORK SAYS ANDREW SCHARLACH A PROFESSOR OF AGING AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY SOME COMPANIES HAVE FOUND RENAMING THE GATHERINGS TO STRESS INFORMATION SHARING LIFTS SOME OF THE TENSION AT AN ELDERCARE GATHERING AT AN AFFILIATE OF THE CALIFORNIA INSTITUTE OF TECHNOLOGY ATTENDANCE WAS DOWN IF WE CALLED IT A SUPPORT GROUP BUT ROSE WHEN THE GATHERING WAS RENAMED TECHNICAL ADVISORY GROUP SAYS AN OFFICIAL AT THE SENIOR CARE NETWORK AT HUNTINGTON MEMORIAL HOSPITAL PASADENA CALIF WHICH ORGANIZED THE PROGRAMS EVEN WITHOUT WARMANDFUZZY TITLES THE GATHERINGS PROVIDE SUPPORT CONNIE OLSON LINCOLN NATIONAL'S ASSOCIATE DIRECTOR REINSURANCE HEALTH UNDERWRITING OVERSEES CARE FOR HER PARENTS IN WEST VIRGINIA BOTH IN THEIR 80S AND STRUGGLING WITH HER MOTHER'S ALZHEIMER'S DISEASE SHE SAYS THE GROUP HELPS HER BE MORE PRODUCTIVE IF I CAN GET A LITTLE OF THE STRESS OUT AND SHARE IT THAT'S A RELEASE FOR ME SHE SAYS MORE COMPANIES EMBRACE EMPLOYEE WORKFAMILY NEWSLETTERS AS A LOWCOST SUPPORT FOR FRAZZLED WORKERS WORK AND FAMILY LIFE THE OLDEST WORKFAMILY NEWSLETTER NOW IN ITS SEVENTH YEAR IS SEEING STEADY GROWTH SAYS EDITOR AND PUBLISHER SUSAN GINSBERG ASSOCIATE DEAN AT BANK STREET COLLEGE NEW YORK TWO NEW NEWSLETTERS AT YOUR BEST FROM RODALE PRESS EMMAUS PA AND WORKINGFAMILIES PUBLISHED BY WORKING FAMILIES INC NEW YORK CAME OUT IN MARCH WORK AND FAMILY LIFE HAS ABOUT 40000 SUBSCRIBERS INCLUDING EMPLOYEES AT SUCH BIG COMPANIES AS ATLANTIC RICHFIELD COLGATEPALMOLIVE AND DOW JONES PUBLISHER OF THIS NEWSPAPER AT YOUR BEST A MONTHLY SAYS IT HAS ABOUT 400 BULK SUBSCRIBERS AND AN ADDITIONAL 300 INDIVIDUAL SUBSCRIBERS WORKINGFAMILIES A BIMONTHLY GOES TO ABOUT 1200 PEOPLE THE NEWSLETTERS ARE CHEAP AT 36 TO 99 CENTS PER COPY IN BULK AND OFFER ARTICLES ON SUCH SUBJECTS AS JUGGLING MULTIPLE ROLES AND RESOLVING FAMILY FIGHTS FOR MANY COMPANIES THIS IS A WAY TO SEND A MESSAGE THAT THEY'RE SENSITIVE TO EMPLOYEE WORKFAMILY CONFLICTS EVEN IF THEY CAN'T AFFORD TO DO A HECK OF A LOT MORE SAYS PATRICIA ESTESS EDITOR OF WORKINGFAMILIES BUT OFFERING A NEWSLETTER ALONE CAN BE JUST ANOTHER BANDAID FOR WORKFAMILY CONFLICT SAYS RENEE MAGID PRESIDENT OF INITIATIVES A HORSHAM PA CONSULTING FIRM A NEWSLETTER SHOULD BE PART OF A BROADER WORKFAMILY PROGRAM SHE SAYS CORPORATE TAX CREDITS OF UP TO 150000 FOR ONSITE CHILD CARE ARE PROPOSED IN A BILL INTRODUCED BY SEN DENNIS DECONCINI AN ARIZONA DEMOCRAT TRAVELERS JOINS A SMALL BUT GROWING GROUP OF BIG EMPLOYERS THAT PUBLICLY EVALUATE THEIR WORKFAMILY PROGRAMS A CONSULTANT'S STUDY SHOWED THAT ALTHOUGH EMPLOYEES APPRECIATE TRAVELERS' WORKFAMILY PROGRAMS SOME MANAGERS STILL RESIST IMPLEMENTING THEM PUBLISHING THE CRITIQUE THE COMPANY SAYS IS ONE WAY TO EDUCATE THE MANAGERS 9306290140 930629 BROWNINGFERRIS GETS CONTRACT TO OPERATE A HONG KONG DUMP HOUSTON BROWNINGFERRIS INDUSTRIES INC SAID HONG KONG AUTHORITIES AWARDED A JOINT VENTURE CONTRACT VALUED AT 400 MILLION OVER 25 YEARS TO BUILD AND OPERATE A BIG HONG KONG DUMP BOTH BROWNINGFERRIS AND ITS BIGGEST US RIVAL WMX TECHNOLOGIES INC OAK BROOK ILL ARE INCREASINGLY TURNING TO OVERSEAS MARKETS IN RESPONSE TO SLOWER GROWTH IN THE MATURING DOMESTIC WASTE INDUSTRY ONE FOCUS OF THAT EFFORT IS AIMED AT HONG KONG WHICH RECENTLY TIGHTENED DISPOSAL REGULATIONS CREATING DEVELOPMENT OPPORTUNITIES THE WEST NEW TERRITORIES LANDFILL IS THE FIRST OF THREE LARGECAPACITY GARBAGE DISPOSAL SITES PLANNED FOR HONG KONG BROWNINGFERRIS SAID THE TRASH HAULER WILL OPERATE THE LANDFILL FOR 25 YEARS AND MONITOR THE SITE AFTER CLOSURE THE JOINT VENTURE SWIRE BFI WASTE SERVICES IS A 50/50 PARTNERSHIP BETWEEN BROWNINGFERRIS AND SWIRE PACIFIC LTD HONG KONG AN AVIATION PROPERTY INVESTMENT AND DEVELOPMENT FIRM IT ALREADY PROVIDES TRASH SERVICES IN HONG KONG BROWNING CALLED THE CONTRACT PART OF ITS DETERMINATION TO EXPAND IN ATTRACTIVE MARKETS OUTSIDE THE US EARLIER THIS MONTH A WMX VENTURE FORMALLY OPENED A 150 MILLION HAZARDOUS WASTE INCINERATOR IN HONG KONG THE VENTURE WILL OPERATE THE GOVERNMENTOWNED FACILITY UNDER A 17YEAR CONTRACT 9306290139 930629 FINANCING BUSINESS SEAGULL ENERGY CORP SEAGULL ENERGY CORP HOUSTON SAID IT FILED A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION TO ISSUE PERIODICALLY AS MUCH AS 350 MILLION OF SENIOR OR SENIOR SUBORDINATED NOTES THE COMPANY SAID IT WOULD USE THE FUNDS FOR GENERAL CORPORATE PURPOSES 9306290138 930629 ANTITRUST SUIT AGAINST BIG US INSURERS WINS CLEARANCE FROM SUPREME COURT BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT CLEARED THE WAY FOR A LAWSUIT AGAINST FOUR US INSURANCE GIANTS THAT ALLEGES THAT THEY ILLEGALLY COLLUDED WITH BRITISH COMPANIES TO LIMIT CERTAIN TYPES OF CORPORATE LIABILITY COVERAGE AND ELIMINATE OTHERS A SPLINTERED HIGH COURT SAID THE ATTORNEYS GENERAL FROM 19 STATES MAY PROCEED WITH THE MAIN PART OF A MASSIVE ANTITRUST SUIT THAT GREW OUT OF TURMOIL IN THE MID1980S WHEN INSURERS RAISED PREMIUMS AND CUT BACK ON POLICIES AVAILABLE TO US COMPANIES NONPROFIT GROUPS AND GOVERNMENT AGENCIES YESTERDAY'S DECISION DID CONTAIN SOME GOOD NEWS FOR US INSURERS THE HIGH COURT RULED THAT US CARRIERS DON'T AUTOMATICALLY FORFEIT THEIR PROTECTION AGAINST MOST ANTITRUST LIABILITY SIMPLY BY DOING BUSINESS WITH FOREIGN COMPANIES IF THE JUSTICES HAD RULED OTHERWISE THE EFFECT ON THE INDUSTRY WOULD HAVE BEEN IMMENSE US INSURERS OPERATE ON A FOUNDATION OF INTERNATIONAL CORPORATE RELATIONSHIPS THAT COULD HAVE BEEN SEVERELY UNDERMINED ANOTHER ENCOURAGING ASPECT FOR THE INDUSTRY WAS THE HIGH COURT'S NARROW DEFINITION OF THE SORT OF BOYCOTT FOR WHICH INSURERS MAY BE HELD LIABLE UNDER THE ANTITRUST LAWS INDUSTRY REPRESENTATIVES CLAIMED VICTORY ON THIS POINT AND PREDICTED THEY WOULD FEND OFF THE BOYCOTT CHARGES AT TRIAL PROSECUTORS DISAGREED SAYING THEY WOULD PROVE THEIR ALLEGATIONS THE CASE INVOLVED SOCALLED COMMERCIAL GENERAL LIABILITY INSURANCE WHICH PROTECTS CUSTOMERS AGAINST LIABILITY TO THIRD PARTIES FOR PERSONAL INJURY OR PROPERTY DAMAGE UNTIL 1984 US INSURERS PROVIDED SUCH POLICIES ON AN OCCURRENCE BASIS MEANING THAT INJURIES AND DAMAGE OCCURRING DURING THE LIFE OF THE POLICY WERE COVERED REGARDLESS OF WHEN CLAIMS WERE MADE BUT IN THE EARLY1980S SOME BIG US INSURERS BECAME DISSATISFIED FEARING LARGE CLAIMS INVOLVING ENVIRONMENTAL DAMAGE WOULD BE SUBMITTED LONG AFTER THE POLICIES EXPIRED THEY SOUGHT A POLICY ON A CLAIMSMADE BASIS WHICH WOULD COVER ONLY CLAIMS MADE DURING THE LIFE OF THE POLICY REGARDLESS OF WHEN THE INJURY OR DAMAGE OCCURRED HARTFORD FIRE INSURANCE CO AND OTHER INSURERS ARE ACCUSED OF PRESSURING THE INSURANCE SERVICE OFFICE AN INDUSTRY ASSOCIATION TO CHANGE THE STANDARD POLICY TO A CLAIMSMADE FORM THE US INSURERS ENLISTED THE COOPERATION OF US AND BRITISH REINSURANCE COMPANIES WHICH CHARGE FEES FOR SHARING THE RISKS OF POLICIES ISSUED BY PRIMARY INSURERS THE BRITISH REINSURERS ALLEGEDLY THREATENED TO BOYCOTT COMPANIES OFFERING POLICIES ISSUED ON AN OCCURRENCE BASIS THE THREAT CARRIED WEIGHT BECAUSE PRIMARY INSURERS NEED REINSURANCE TO LESSEN THEIR POTENTIAL LIABILITY AND LOWER THEIR CASH RESERVE REQUIREMENTS THOUGH SOME US INSURERS RESISTED THE CHANGES THE INSURANCE SERVICE OFFICE IN THE MID1980S MADE AVAILABLE A STANDARD CLAIMSMADE FORM WITH A DEADLINE FOR FILING CLAIMS THE NEW FORMS ALLOWED ELIMINATION OF ACCIDENTAL POLLUTION COVERAGE AMONG OTHER CHANGES ALLEGEDLY MADE TO APPEASE THE BIG INSURERS THE STATE ATTORNEYS GENERAL LED BY CALIFORNIA'S TOP PROSECUTOR FILED LAWSUITS UNDER FEDERAL ANTITRUST LAW AGAINST FOUR MAJOR US PRIMARY INSURERS HARTFORD AN ITT CORP UNIT AETNA LIFE & CASUALTY CO ALLSTATE INSURANCE CO A SEARS ROEBUCK & CO UNIT AND CIGNA CORP ALSO NAMED AS DEFENDANTS WERE THE INSURANCE SERVICE OFFICE AND A NUMBER OF US AND FOREIGN REINSURERS A FEDERAL TRIAL JUDGE DISMISSED THE CONSOLIDATED LAWSUITS THE JUDGE SAID THE DEFENDANTS WERE PROTECTED UNDER THE MCCARRANFERGUSON ACT A FEDERAL LAW ENACTED IN 1945 THAT EXEMPTS THE INSURANCE INDUSTRY FROM MOST ANTITRUST LIABILITY THE FEDERAL APPEALS COURT IN SAN FRANCISCO REVERSED THAT DECISION AND ORDERED A TRIAL IT RULED THAT THE DEFENDANTS HAD FORFEITED THEIR PROTECTION BY COLLABORATING WITH FOREIGN REINSURERS THE APPEALS COURT ALSO SAID THE DEFENDANTS' ALLEGED CONDUCT FELL WITHIN AN EXCEPTION IN THE LAW THAT DENIES PROTECTION TO BOYCOTTS AND OTHER FORMS OF ECONOMIC COERCION THE HIGH COURT YESTERDAY AFFIRMED PART OF THE APPEALS COURT RULING ALL NINE JUSTICES AGREED THAT DOING BUSINESS WITH FOREIGN REINSURERS DOESN'T AUTOMATICALLY DEPRIVE THE DOMESTIC CARRIERS OF PROTECTION UNDER MCCARRANFERGUSON BRITISH REINSURANCE IS NOW EFFECTIVELY PART OF THE US INSURANCE INDUSTRY THEY SAID BUT THE HIGH COURT RULED UNANIMOUSLY THAT IF PROVED AT TRIAL THE CORE CONSPIRACY ALLEGATIONS AGAINST THE US AND BRITISH COMPANIES WOULD AMOUNT TO A BOYCOTT THE JUSTICES SPLIT OVER HOW TO DEFINE A BOYCOTT WRITING FOR A 54 MAJORITY ON THIS POINT JUSTICE ANTONIN SCALIA INTERPRETED THE TERM IN A COMPLICATED AND NARROW FASHION THAT MIGHT BECOME A SIGNIFICANT HURDLE AT TRIAL FOR THE ATTORNEYS GENERAL HE ASSERTED THAT A BOYCOTT IS DIFFERENT FROM A GROUP'S REFUSAL TO DEAL WITH OTHER PARTIES TO QUALIFY AS A BOYCOTT THE GROUP'S REFUSAL MUST APPLY TO TRANSACTIONS OTHER THAN THOSE THE BOYCOTTERS WANT TO AFFECT HE SAID FOR EXAMPLE THE ALLEGED CONSPIRACY TO CUT OFF REINSURANCE WOULD HAVE BEEN A BOYCOTT ACCORDING TO JUSTICE SCALIA IF IT HURT US CARRIERS IN BUSINESS UNRELATED TO THE QUESTION OF WHETHER CLAIMSMADE OR OCCURENCE POLICIES WERE SOLD JOINING JUSTICE SCALIA'S APPROACH WERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES SANDRA DAY O'CONNOR ANTHONY KENNEDY AND CLARENCE THOMAS JUSTICE DAVID SOUTER URGED A BROADER VIEW OF WHAT CONSTITUTES A BOYCOTT HE WAS JOINED BY JUSTICES BYRON WHITE HARRY BLACKMUN AND JOHN PAUL STEVENS 9306290136 930629 TECHNOLOGY & HEALTH DELL PRICE CUT IN JAPAN MAY SPUR PC WAR BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO DELL COMPUTER CORP CUT PRICES ON ITS MAIN LINE OF PERSONAL COMPUTERS BY BETWEEN 9 AND 23 IN JAPAN SETTING THE STAGE FOR WHAT ANALYSTS CALLED A SECOND ROUND OF JAPAN'S PC PRICE WAR THIS WILL BE A REAL PRICE WAR SAID CHUCK GOTO AN ANALYST WITH SG WARBURG JAPAN INC WHAT WE'VE SEEN BEFORE WAS JUST THE PRELIMINARY ROUND LAST FALL JAPAN'S ONCEPLACID PC MARKET TURNED INTO A SLUGFEST WHEN NEWCOMERS FROM THE US CHALLENGED NEC CORP WHICH CONTROLS MORE THAN 50 OF JAPAN'S PC MARKET WITH LOWPRICED HIGHPERFORMANCE PCS WHILE NEC'S MARKET SHARE HASN'T SHRUNK APPRECIABLY SINCE THE ONSET OF THE PRICE WAR THE CHALLENGE FROM COMPAQ COMPUTER CORP INTERNATIONAL BUSINESS MACHINES CORP AND DELL DID FORCE THE JAPANESE COMPANY TO DO THE ONCEUNTHINKABLE AND CUT ITS OWN PRICES BY ABOUT 50 LAST JANUARY DELL'S NEWEST PRICE CUTS ARE THE FIRST SIGN THAT THE PRICE WAR WHICH HAS BEEN LARGELY DORMANT SINCE THE BEGINNING OF THE YEAR MIGHT BE HEATING UP AGAIN THE COMPANY SAID IT WOULD CUT THE PRICES OF 13 PC MODELS BY BETWEEN 40000 YEN 377 AND 90000 YEN 849 AS PART OF A GENERAL REVIEW OF ITS PRICING THE LOWESTPRICED MODEL NOW COSTS 188000 YEN A COMPANY SPOKESWOMAN ADMITTED THAT THE YEN'S APPRECIATION SINCE LAST FALL PLAYED A ROLE IN THE COMPANY'S DECISION ALTHOUGH SHE SAID IT WAS NOT THE MAJOR FACTOR A STRONGER YEN MAKES IMPORTED PRODUCTS LIKE DELL'S PCS CHEAPER IN JAPAN DELL'S STOCK FELL 125 OR 59 TO 19875 IN NATIONAL OVERTHECOUNTER TRADING ANALYSTS SAID DELL'S MOVE WILL LIKELY PUT PRESSURE ON IBM AND COMPAQ TO CUT PRICES AS WELL ALTHOUGH NEITHER COMPANY SAID IT HAD PLANS TO FOLLOW SUIT MR GOTO SAYS ALL THREE COMPANIES HAVE PLENTY OF ROOM TO BRING THEIR PRICES DOWN AFTER COMPARING IDENTICAL SYSTEMS IN THE US AND JAPAN AND ADJUSTING FOR THE EXTRA COST OF DISTRIBUTION IN JAPAN AND ADAPTING PCS TO THE JAPANESE LANGUAGE HE FIGURES THE COMPANIES COULD STILL CUT PRICES BY AS MUCH AS 30 TO 40 SOFTWARE AND HARDWARE PRICES ARE STILL TOO HIGH IN JAPAN HE SAID WHILE DELL REFUSES TO GIVE DATA ABOUT UNIT SALES OR REVENUE IN JAPAN IT SAID ITS REVENUE PROJECTIONS ARE ON TARGET AND THAT ITS PCS HAVE BEEN WELL RECEIVED ANALYSTS AREN'T SO SURE MY IMPRESSION IS THAT DELL IS THE LEAST SUCCESSFUL OF THE NEW WAVE OF FOREIGNERS SAID PETER WOLFF AN ANALYST WITH KIDDER PEABODY & CO IN TOKYO THEY NEED TO SHAKE THINGS UP AND COMPETE ON PRICE 9306290135 930629 FIRST FINANCIAL MANAGEMENT UNIT ATLANTA FIRST FINANCIAL MANAGEMENT CORP SAID ITS MICROBILT SUBSIDIARY WAS AWARDED A CONTRACT BY SERVICE MERCHANDISE CO TO PROVIDE A SYSTEM TO PROCESS CHECKS AND CREDITCARD PAYMENTS FOR THE RETAILER BASED IN NASHVILLE TENN TERMS WEREN'T DISCLOSED FIRST FINANCIAL IS A PROVIDER OF INFORMATION SERVICES IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ITS STOCK ROSE 125 CENTS TO 40875 9306290134 930629 ALLIEDSIGNAL TO PAY FOR CLEANUP ALBANY NY NEW YORK STATE ENVIRONMENTAL REGULATORS SAID ALLIEDSIGNAL INC AGREED TO PAY 10 MILLION TO ELIMINATE THE FLOW OF CONTAMINANTS FROM THE BUFFALO COLOR CORP SITE ON THE BUFFALO RIVER PREDECESSOR COMPANIES TO ALLIEDSIGNAL OF MORRISTOWN TOWNSHIP NJ MANUFACTURED AND LATER HANDLED VARIOUS CHEMICALS AT THE SITE UNTIL 1976 AT THAT TIME BUFFALO COLOR PURCHASED THE LAND AND THE PROPERTY HAS REMAINED IDLE SINCE THE REMEDIAL WORK IS EXPECTED TO BE COMPLETED BY 1996 STATE REGULATORS SAID ALLIEDSIGNAL A TECHNOLOGY COMPANY WITH INTERESTS IN AEROSPACE AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS WILL ALSO REIMBURSE STATE REGULATORS UP TO 300000 FOR ADMINISTRATIVE COSTS ASSOCIATED WITH THE WORK ALLIEDSIGNAL SAID PROPER RESERVES HAD PREVIOUSLY BEEN SET ASIDE FOR THE PAYMENTS 9306290133 930629 ENTERPRISE HEALTH PROGRAM FOR SMALL FIRMS IS NO PANACEA BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL AS THE NATION TRIES TO REVAMP ITS HEALTH CARE A WIDERANGING PROGRAM TO PROVIDE COVERAGE FOR SMALLBUSINESS EMPLOYEES HELPS SHOW HOW DIFFICULT THE TASK CAN BE STARTED IN 1986 WITH SEED MONEY FROM THE ROBERT WOOD JOHNSON FOUNDATION IN PRINCETON NJ THE HEALTH CARE FOR THE UNINSURED PROGRAM ORGANIZES BUYING POOLS MUCH AS PRESIDENT CLINTON ADVOCATES IT ALSO PROVIDES SUBSIDIES AND LIMITS BENEFITS TO MAKE PREMIUMS AFFORDABLE IT AIMS TO REDUCE THE COST AND INCREASE THE AVAILABILITY OF HEALTH CARE TO SMALLBUSINESS EMPLOYEES WHO ACCOUNT FOR HALF OF ALL UNINSURED AMERICANS PROJECTS IN THE PROGRAM NOW SERVE NEARLY 31000 WORKERS AT MORE THAN 6700 COMPANIES THE PROGRAM HAS ENJOYED SOME SUCCESS NOTABLY IN FLORIDA BUT SEVEN YEARS AFTER IT WAS STARTED NONE OF ITS PROJECTS HAS ENROLLED EVEN A FIFTH OF THE PEOPLE TARGETED MANY PROJECTS SUFFERED BECAUSE THEIR CUTRATE COVERAGE WAS STILL TOO COSTLY FOR LOWINCOME WORKERS ONE WAS HURT BY AN OPENENROLLMENT POLICY THAT RAN UP UNDERWRITING LOSSES OTHERS FALTERED WHEN THEIR MARKETING EFFORTS FIZZLED OR THEIR STATE FUNDING DRIED UP THE FOUNDATION'S PROGRAM TO PROVIDE HEALTH CARE TO SMALLBUSINESS EMPLOYEES HAS PROVEN HOW TOUGH IT IS TO REACH THIS MARKET SAYS ANNE GAUTHIER ASSOCIATE DIRECTOR OF ALPHA CENTER A WASHINGTON HEALTHCARE CONSULTING ORGANIZATION THAT OVERSAW THE PROGRAM EVEN REDUCING PREMIUMS TO AS LITTLE AS HALF THE PREVAILING RATES FAILED TO ATTRACT MOST OF THE PEOPLE THE PROJECTS TARGETED SHE SAYS SUCH RESULTS SUGGEST YOU NEED A MANDATORY SYSTEM TO BRING THESE FOLKS IN THEN THE MARKETING AND SUPPORT SO THEY UNDERSTAND THE SYSTEM THEN A SIGNIFICANT SHIFT IN RESOURCES OR GOVERNMENT SUBSIDIES TO FUND IT ALL SAYS DANIEL CAMPION AN ALPHA CENTER SENIOR ASSOCIATE HOWEVER MUCH MONEY IS NEEDED TO FINANCE HEALTHCARE REFORM THE SOURCE WILL HAVE TO BE MORE RELIABLE THAN THOSE THAT FUNDED SOME PROJECTS OF FIVE FOUNDATION PROJECTS THAT RECEIVED DIRECT STATE SUBSIDIES ONE IN MICHIGAN AND ONE IN WISCONSIN WERE DISCONTINUED WHEN THIS FUNDING EXPIRED FUNDING PROBLEMS WILL ALSO FORCE A THIRD PROJECT IN MAINE TO CEASE OPERATING AT THE END OF THIS MONTH THE MAINE PROJECT CALLED MAINECARE REACHED THE HIGHEST SHARE OF ITS TARGET MARKET THE HEALTH PLAN THAT PROVIDED CARE FOR PLAN MEMBERS HEALTHSOURCE MAINE EVEN AGREED TO REFUND THE STATE SOME OF ITS SUBSIDY IF THE PROJECT'S COSTS WERE LESS THAN EXPECTED WHICH THEY WERE EVERY YEAR MAINECARE CERTAINLY PROVED A MANAGEDCARE PROGRAM IS A COSTEFFECTIVE WAY TO REACH THESE PEOPLE SAYS RICHARD WHITE CHIEF EXECUTIVE OFFICER OF HEATHSOURCE MAINE A UNIT OF HEALTHSOURCE INC CONCORD NH BUT SUCH ACHIEVEMENTS DIDN'T CARRY THE PROJECT THROUGH MAINE'S FISCAL CRISIS LAWMAKERS LOOKING FOR WAYS TO SLASH SPENDING DECIDED LAST YEAR TO LET FUNDING FOR THE PROJECT EXPIRE LEAVING SMALLBUSINESS EMPLOYERS SUCH AS MORNING GLORY NATURAL FOODS IN THE LURCH THE BRUNSWICK STORE PROVIDED HEALTH CARE TO FOUR EMPLOYEES THROUGH MAINECARE SAYS OWNER SUSAN TARPINIAN HEALTHSOURCE OFFERED HER WORKERS NEW COVERAGE BUT NONE OF THEM COULD AFFORD THE UNSUBSIDIZED POLICY WHOSE BENEFITS HAD BEEN CUT SHARPLY SHE SAYS FOR INSTANCE THE AMOUNT OF CLAIMS THE POLICY WOULD PAY OVER ITS LIFETIME HAD DROPPED TO 25000 FROM 1 MILLION MOST OF THESE PEOPLE NEVER HAD INSURANCE AND NOW THEY DON'T AGAIN MS TARPINIAN SAYS THE FOUNDATION'S PROJECT IN DENVER HAS SUFFERED FROM DWINDLING MARKETING INSTEAD OF DECLINING SUBSIDIES THE PROJECT CALLED SCOPE RELIES PRIMARILY ON COSTSHARING TO REDUCE PREMIUMS THE COVERAGE REQUIRES POLICYHOLDERS TO PAY FOR HALF OF THEIR MEDICAL BILLS EXCLUDING DOCTOR VISITS AND PREVENTIVE CARE UP TO 5000 A YEAR SCOPE WAS PROMOTED HEAVILY AT FIRST SAYS JUDY GLAZNER AN ASSOCIATE DIRECTOR FOR HEALTH POLICY AT THE UNIVERSITY OF COLORADO'S HEALTH SCIENCES CENTER WHO OVERSAW THE PROJECT IN THE WAKE OF INITIAL MEDIA COVERAGE AND AN ADVERTISING BLITZ WE HEARD FROM 8000 BUSINESSES IN FIVE WEEKS SHE SAYS BUT WHEN THE FOUNDATION'S 325000 MARKETING GRANT RAN OUT IN 1991 THE PROJECT'S VISIBILITY STARTED TO SLIP AND ENROLLMENT BEGAN DECLINING MS GLAZNER SAYS THE PROGRAM NOW COVERS ABOUT 7000 PEOPLE DOWN FROM A PEAK OF 9000 IN 1991 WHILE THE FOUNDATION'S PROJECT IN ARIZONA HAS CONTINUED TO GROW IT HAS ENCOUNTERED EXTRAORDINARY UNDERWRITING LOSSES THE PROJECT IS RUN BY ARIZONA HEALTH COST CONTAINMENT SYSTEM THE PHOENIX AGENCY IN CHARGE OF THE STATE'S 500000MEMBER MANAGEDCARE MEDICAID PROGRAM THE AGENCY HAS HELPED LOWER THE PREMIUMS SMALLBUSINESS EMPLOYEES PAY FOR REGULAR HEALTHCARE COVERAGE BY PICKING UP THE PROJECT'S MARKETING AND ADMINISTRATIVE COSTS BUT THE PROJECT COVERS ANY APPLICANT WHO IS EMPLOYED BY A QUALIFIED SMALL BUSINESS AS A RESULT IT HAS MANY ENROLLEES WITH PREEXISTING MEDICAL PROBLEMS SAYS LEONARD KIRSCHNER DIRECTOR OF THE PHOENIX AGENCY SOME HEALTH MAINTENANCE ORGANIZATIONS PARTICIPATING IN THE PROJECT ARE LOSING 30 ON EVERY 110 PREMIUM THEY COLLECT DR KIRSCHNER SAYS THE PROJECT IS NOT PERFECT BUT IT'S DEMONSTRATED ITS POTENTIAL THE POTENTIAL TO PROVIDE AFFORDABLE HEALTH CARE TO SMALLBUSINESS EMPLOYEES APPEARS MOST EVIDENT AT THE FOUNDATION'S FLORIDA PROJECT AS PREVIOUSLY REPORTED A GROUP CALLED FLORIDA HEALTH ACCESS CORP HAS ORGANIZED MORE THAN 2800 COMPANIES INTO ONE COOPERATIVE TO PURCHASE HEALTH CARE AT BIGCOMPANY RATES JOINING FORCES CUT ADMINISTRATIVE COSTS AND CREATED LARGER LESSRISKY POOLS OF POLICYHOLDERS WHOSE CLAIMS ACTIVITY IS EASIER FOR INSURERS TO PREDICT THE IDEA HAS WORKED SO WELL THAT EARLIER THIS YEAR WHEN THE FLORIDA LEGISLATURE HALVED THE PROJECT'S FUNDING FLORIDA HEALTH ACCESS NEGOTIATED WITH SIX HEALTH PLANS TO PROVIDE CARE TO ITS TAMPA MEMBERS WITHOUT PREMIUM SUBSIDIES THE RESULT RATES FOR INDIVIDUAL POLICYHOLDERS ROSE AN AVERAGE OF ONLY 12 WITH NO REDUCTION IN BENEFITS SAYS MADELEINE CARR FLORIDA HEALTH ACCESS SPOKESWOMAN MS CARR CONCEDES THE PROJECT IS STILL EVOLVING FAMILY PREMIUMS ROSE AS MUCH AS 24 SHE SAYS MOREOVER FLORIDA HEALTH ACCESS STILL NEEDS STATE FUNDING TO SUBSIDIZE ITS ADMINISTRATIVE COSTS BUT WITH NEGOTIATIONS UNDER WAY TO REMOVE PREMIUM SUBSIDIES FOR THE PROJECT'S OTHER MEMBERS SHE SAYS THE MARKETPLACE IS ACTUALLY TAKING OVER 9306290132 930629 LAW RICHARD GREENFIELD IS LEAVING FIRM HE FOUNDED BUILT UP BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL RICHARD D GREENFIELD ONE OF THE MOST PROLIFIC SHAREHOLDER PLAINTIFFS LAWYERS IS LEAVING THE FIRM THAT HE FOUNDED AND BUILT INTO A LITIGATION POWERHOUSE AS OF SATURDAY GREENFIELD & CHIMICLES OF HAVERFORD PA BECAME CHIMICLES BURT JACOBSEN & MCNEW THE NEW 48LAWYER FIRM WILL INCLUDE ALL OF THE PARTNERS OF THE OLD LAW FIRM EXCEPT MR GREENFIELD WHO WILL HANG OUT HIS OWN SHINGLE AS RICHARD D GREENFIELD & PARTNERS MR GREENFIELD SAID HE WILL MAKE AN ANNOUNCEMENT ABOUT WHO HIS NEW PARTNERS WILL BE THE ANNOUNCEMENT CAUGHT THE SHAREHOLDER PLAINTIFFS BAR A TIGHTLY KNIT COMMUNITY THAT TYPICALLY KEEPS CLOSE TABS ON EACH OTHER BY SURPRISE BUT THE NEWS COMES AS MR GREENFIELD HAS DRAWN CRITICISM IN COURT FOR SOME OF HIS LEGAL TACTICS IN ONE OF THOSE CASES INVOLVING LAWSUITS AGAINST DONALD TRUMP OVER BONDS ISSUED BY HIS ATLANTIC CITY NJ CASINOS A FEDERAL JUDGE ASKED A DISCIPLINARY COMMITTEE TO INVESTIGATE WHETHER MR GREENFIELD IMPROPERLY MISLED THE COURT THAT MATTER IS PENDING LAST FALL MR GREENFIELD WAS THE SUBJECT OF A PAGE ONE STORY IN THE WALL STREET JOURNAL THAT PROVIDED DETAILS ON HOW HE MANAGES TO FILE NUMEROUS CLASSACTION SUITS BY RELYING ON PLAINTIFFS WITH MINUSCULE HOLDINGS IN A LARGE NUMBER OF COMPANIES OR BY REPRESENTING ENTITIES THAT HE CONTROLS MESSRS GREENFIELD AND CHIMICLES DECLINED TO ELABORATE ON THE REASONS FOR THEIR SPLIT IN A STATEMENT THEY SAID THAT MR GREENFIELD WAS LEAVING TO PURSUE OTHER INTERESTS AND TO CONTINUE A LIMITED PRACTICE IN A SMALLER PRACTICE ENVIRONMENT THE TWO ALSO SAID THEY HAD YET TO DECIDE WHAT CASES THE CHIMICLES FIRM WILL KEEP AND WHAT MR GREENFIELD WILL TAKE WITH HIM AMONG THE MOST PROMINENT CASES IN WHICH MR GREENFIELD IS CURRENTLY INVOLVED ARE LAWSUITS AGAINST AMERICAN EXPRESS CO OVER THE ALLEGED SMEAR CAMPAIGN AGAINST INTERNATIONAL BANKER EDMOND SAFRA 9306290131 930629 BUSINESS BRIEF INCO TO SELL STAKE IN TVX GOLD UNIT TO UNDERWRITERS FOR 2894 MILLION TORONTO INCO LTD SAID IT AGREED TO SELL ITS 62 INTEREST IN ITS TVX GOLD INC UNIT TO A GROUP OF UNDERWRITERS FOR 371 MILLION CANADIAN DOLLARS US2894 MILLION AFTER TAXES IN A MOVE THAT WILL ALLOW CASHSTRAPPED INCO TO PARE ITS DEBT INCO WHICH HAS BEEN HURT BY WEAK PRICES FOR ITS MAJOR PRODUCT NICKEL SAID IT WILL RECORD A 125 MILLION GAIN IN THE THIRD QUARTER AS A RESULT OF THE TRANSACTION WHICH IS EXPECTED TO CLOSE NEXT MONTH LAST YEAR THE NICKEL AND COPPER PRODUCER HAD A LOSS OF 18 MILLION ITS FIRST LOSS IN NEARLY A DECADE INCO AGREED TO SELL ITS HOLDING OF 831 MILLION TVX GOLD SHARES FOR C465 US363 EACH FOR TOTAL PROCEEDS OF C3864 MILLION BEFORE FEES THE UNDERWRITERS LED BY WOOD GUNDY INC AND BURNS FRY LTD WILL THEN OFFER THE SHARES TO THE CANADIAN PUBLIC AND TO SOME US INSTITUTIONAL INVESTORS INCO SAID THE SALE WILL MEAN A NUMBER OF BIG CHANGES FOR TVX GOLD AT A TIME WHEN INVESTORS HAVE BEEN SNAPPING UP GOLD STOCKS FOR ONE THING TVX GOLD WILL BE WIDELY HELD FOR THE FIRST TIME SINCE IT WAS CREATED IN EARLY 1991 IN THE MERGER OF INCO'S GOLD MINING ASSETS AND ANOTHER GOLD CONCERN TVX GOLD ALSO WILL GET A NEW MANAGEMENT TEAM THE TORONTO COMPANY'S CURRENT TOP EXECUTIVE MARTIN ROBINSON A LONGTIME INCO EMPLOYEE SAID HE PLANS TO RETURN TO INCO AFTER THE SALE TVX GOLD'S CHAIRMAN EIKE BATISTA WILL BE THE LARGEST SINGLE SHAREHOLDER WITH A 13 STAKE MR BATISTA WHO IS BASED IN BRAZIL SAID THAT HE WILL TAKE ON THE ADDITIONAL ROLE OF CHIEF EXECUTIVE OFFICER AND THAT HE HAS SELECTED A NEW MANAGEMENT TEAM FOR THE COMPANY AFTER THE SALE TVX GOLD'S CHAIRMAN EIKE BATISTA WILL BE THE LARGEST SINGLE SHAREHOLDER WITH A 13 STAKE MR ROBINSON SAID MR BATISTA WHO IS BASED IN BRAZIL PLANS TO APPOINT A NEW MANAGEMENT TEAM FOR THE COMPANY MR BATISTA COULDN'T BE REACHED FOR COMMENT ANALYSTS SAID THEY EXPECT GOOD INVESTOR DEMAND FOR TVX GOLD SHARES BECAUSE OF WHAT THEY SAY IS A SHORTAGE OF GOLD INVESTMENT VEHICLES AMID A RECENT RALLY IN THE PRICE OF BULLION TVX GOLD EXPECTS THIS YEAR TO PRODUCE 410000 OUNCES OF GOLD WORTH 154 MILLION AT CURRENT MARKET PRICES THERE AREN'T SUFFICIENT GOLD MINING SHARES OUT THERE IF EVERYONE WANTS TO HAVE AN EXPOSURE INVESTORS ARE ACTIVELY LOOKING FOR NEW NAMES SAID VAHID FATHI OF KEMPER SECURITIES INC BECAUSE OF THIS SHORTAGE OF STOCKS MR FATHI CALCULATES THAT THE TOTAL VALUE OF NORTH AMERICAN GOLD SHARES HAS RISEN BY 52 SINCE EARLY MARCH WHEN THE CURRENT GOLD RALLY TOOK OFF BY COMPARISON THE PRICE OF GOLD BULLION HAS RISEN IN THE SAME PERIOD BY JUST 13 HE SAID IN LATE OVERTHECOUNTER TRADING YESTERDAY TVX GOLD SHARES WERE QUOTED AT 38125 DOWN 1875 CENTS INCO SHARES WERE QUOTED ON THE NEW YORK STOCK EXCHANGE AT 22875 UP 50 CENTS 9306290130 930629 FINANCING BUSINESS GATEWAY FINANCIAL CORP GATEWAY FINANCIAL CORP NORWALK CONN SAID IT PLANS TO RAISE ABOUT 26 MILLION THROUGH A RIGHTS OFFERING OF ALMOST FIVE MILLION SHARES AT 525 A SHARE PROCEEDS WILL BE USED TO BOLSTER THE CAPITAL OF ITS GATEWAY BANK UNIT WHICH OPERATES 28 BRANCHES IN FAIRFIELD COUNTY CONN 9306290129 930629 WHO'S NEWS AJAY SPORTS TAPS ITIN AS CHAIRMAN AND CEO POSTS 1STPERIOD LOSS DELAVAN WIS AJAY SPORTS INC A MAKER OF GOLF BAGS WHOSE SALES AND EARNINGS HAVE BEEN DECLINING NAMED THOMAS W ITIN THE PRESIDENT OF ITS LARGEST SHAREHOLDER AS CHAIRMAN CHIEF EXECUTIVE OFFICER AND A DIRECTOR MR ITIN 58 YEARS OLD SUCCEEDS JOSEPH W HOVORKA WHO RESIGNED UNDER FIRE FROM SHAREHOLDERS MR ITIN PRESIDENT OF LBO CAPITAL CORP WHICH HOLDS ABOUT A 15 STAKE IN AJAY SAID SHAREHOLDERS HAVE BEEN DISAPPOINTED WITH THE COMPANY'S RESULTS YESTERDAY AJAY REPORTED A NET LOSS OF 130000 EQUAL TO TWO CENTS A SHARE ON REVENUE OF 49 MILLION FOR THE FIRST QUARTER ENDED MARCH 31 IN THE YEAREARLIER FIRST QUARTER THE COMPANY HAD NET INCOME OF 407000 OR FIVE CENTS A SHARE ON REVENUE OF 75 MILLION AJAY HAS BEEN LOSING MARKET SHARE WE'RE TRYING TO GET TRACKING CORRECTLY AND BRING IN ADDITIONAL PEOPLE INCLUDING SOMEONE WITH MASSMERCHANDISING EXPERIENCE SAID MR ITIN HE SAID HE EXPECTS AJAY WHICH ALSO DISTRIBUTES GOLF ACCESSORIES TO ACQUIRE OTHER COMPANIES AND BECOME LESS DEPENDENT ON ONE SPORT HE SAID FOR INSTANCE THAT HE INTENDS TO REJUVENATE THE COMPANY'S MORIBUND BILLIARDS BUSINESS IN OVERTHECOUNTER TRADING YESTERDAY AJAY CLOSED AT 46875 CENTS DOWN 3125 CENTS THAT IS OFF FROM THE STOCK'S 52WEEK HIGH OF 13125 9306290127 930629 POLITICS & POLICY HIGH COURT RULES RACIAL REDISTRICTING COULD VIOLATE RIGHTS OF WHITE VOTERS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID STATES MAY BE VIOLATING THE RIGHTS OF WHITE VOTERS BY PURPOSELY DESIGNING CONGRESSIONAL DISTRICTS SO THAT MINORITIES CAN EXERCISE ELECTORAL POWER THE 54 RULING REINSTATED A LAWSUIT CHALLENGING NORTH CAROLINA'S CREATION OF TWO DISTRICTS IN WHICH BLACK VOTERS ENJOYED ELECTORAL MAJORITIES THE STATE HAD ACTED IN RESPONSE TO AN OBJECTION BY THE JUSTICE DEPARTMENT TO AN EARLIER PLAN THAT WOULD HAVE CREATED ONLY ONE MAJORITYBLACK DISTRICT THE DECISION COULD ENCOURAGE A BARRAGE OF LEGAL ATTACKS ON STATES THAT HAVE TRIED TO BOLSTER BLACK AND HISPANIC VOTING POWER AS A RESULT OF RECENT REDISTRICTING THE NUMBER OF CONGRESSIONAL DISTRICTS NATIONWIDE DOMINATED BY BLACKS OR HISPANICS GREW FROM 27 TO 50 AND 19 ADDITIONAL MINORITY MEMBERS OF CONGRESS WERE ELECTED IN 1992 YESTERDAY'S RULING SIDESTEPPED WITHOUT OVERTURNING A 1977 DECISION BY THE HIGH COURT THAT SAID THE USE OF RACE IN REDISTRICTING ISN'T AUTOMATICALLY UNCONSTITUTIONAL THE EARLIER DECISION ADDED THAT RACECONSCIOUS PLANS CAN BE LEGITIMATE IF THEY ARE INTENDED TO MAKE UP FOR PAST DISCRIMINATION AND ARE ADOPTED TO COMPLY WITH THE VOTING RIGHTS ACT JUST LAST MARCH THE HIGH COURT RULED IN A SEPARATE CASE FROM OHIO THAT CREATING MINORITYDOMINATED DISTRICTS ISN'T PROHIBITED BY THE VOTING RIGHTS ACT BUT WRITING FOR THE MAJORITY YESTERDAY JUSTICE SANDRA DAY O'CONNOR SAID VOTERS MAY OBJECT TO RACIALLY MOTIVATED REDISTRICTING BASED ON THE CONSTITUTIONAL GUARANTEE OF EQUAL PROTECTION SHE CONDEMNED RACIAL GERRYMANDERING AS REINFORCING THE BELIEF THAT PEOPLE SHOULD BE JUDGED BY THE COLOR OF THEIR SKIN RACECONSCIOUS REDISTRICTING MUST BE NARROWLY TAILORED TO FURTHER A COMPELLING GOVERNMENT INTEREST JUSTICE O'CONNOR WROTE THAT STANDARD HAS TRADITIONALLY BEEN DIFFICULT FOR STATES TO MEET NEVERTHELESS THE MAJORITY STOPPED SHORT OF SAYING THE CREATION OF MINORITYDOMINATED DISTRICTS AUTOMATICALLY VIOLATES THE CONSTITUTION THE COURT LEFT OPEN THE POSSIBILITY THAT STATES COULD SUCCESSFULLY DEFEND RACECONSCIOUS PLANS AS THE ONLY WAY TO AVOID DILUTION OF MINORITY POLITICAL POWER WHAT ESPECIALLY SEEMED TO CONCERN THE MAJORITY WERE SITUATIONS IN WHICH STATES CREATE ODDLY SHAPED DISTRICTS WHOSE ONLY APPARENT PURPOSE IS TO GROUP VOTERS OF ONE RACE ONE OF THE DISPUTED NORTH CAROLINA DISTRICTS INCLUDES BLACK COMMUNITIES STRUNG OUT FOR 160 MILES ALONG INTERSTATE 85 JOINING THE MAJORITY WERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES ANTONIN SCALIA ANTHONY KENNEDY AND CLARENCE THOMAS SEPARATELY THE HIGH COURT CLAMPED A CONSTITUTIONAL RESTRAINT ON THE POLICE TACTIC OF SEIZING ALLEGED DRUG CRIMINALS' POSSESSIONS AND PROPERTY THE JUSTICES SAID SEIZURES UNDER CIVIL FORFEITURE LAWS MAY BE SO EGREGIOUS THAT THEY VIOLATE THE EIGHTH AMENDMENT'S BAN ON EXCESSIVE FINES THE RULING WAS A SETBACK FOR FEDERAL AND STATE POLICE WHO HAVE USED CIVIL FORFEITURE IN ADDITION TO CRIMINAL PROSECUTION TO SEEK TO PUNISH ALLEGED DRUG TRAFFICKERS THE JUSTICE DEPARTMENT HAD ARGUED IN THIS CASE THAT THE EXCESSIVEFINE PROVISION DOESN'T APPLY TO CIVIL FORFEITURES AUSTIN VS US BUT IN ANOTHER FORFEITURE CASE THE SUPREME COURT RULED 54 THAT FEDERAL AUTHORITIES MAY SEIZE NEARLY ALL OF A PORNOGRAPHER'S ASSETS EVEN IF THE DEFENDANT IS ULTIMATELY CONVICTED OF SELLING ONLY A SMALL NUMBER OF OBSCENE ITEMS THE PORNOGRAPHY DECISION SAID SUCH A SEIZURE EXECUTED UNDER THE FEDERAL ANTIRACKETEERING LAW DOESN'T VIOLATE THE FIRST AMENDMENT PROTECTION OF FREE SPEECH THE PORNOGRAPHY FORFEITURE WAS A PERMISSIBLE CRIMINAL PUNISHMENT NOT AN UNCONSTITUTIONAL PRIOR RESTRAINT ON EXPRESSION CHIEF JUSTICE REHNQUIST WROTE FOR THE MAJORITY BUT THE HIGH COURT SENT THE CASE BACK TO A FEDERAL APPEALS COURT FOR FURTHER CONSIDERATION OF WHETHER THE FORFEITURE WHEN COMBINED WITH THE DEFENDANT'S PRISON TERM AND FINE VIOLATED THE EXCESSIVEFINE PROVISION ALEXANDER VS 9306290126 930629 TECHNOLOGY & HEALTH NOVELL OFFERS SIMPLER WAY IN NETWORKING BY RALPH T KING JR STAFF REPORTER OF THE WALL STREET JOURNAL NOVELL INC STRIKING OUT AGAINST SOFTWARE RIVALS UNVEILED A PRODUCT THAT COULD SIMPLIFY THE TASK OF WRITING NETWORK FUNCTIONS FOR COMPUTER SYSTEMS THAT AREN'T COMPATIBLE THE SOFTWARE WHICH THE PROVO UTAH COMPANY CALLS APPWARE COULD ALLOW PROGRAMMERS TO WRITE A SINGLE VERSION OF NETWORKING APPLICATIONS THAT CAN IN TURN BE USED WITH OPERATING SYSTEMS MADE BY MICROSOFT CORP APPLE COMPUTER INC AND OTHERS CURRENTLY PROGRAMMERS HAVE TO WRITE SEPARATE NETWORK APPLICATIONS FOR EACH SYSTEM THE POTENTIAL BENEFIT TO END USERS IS THAT THEY WOULD MORE QUICKLY GET A BROADER RANGE OF SOFTWARE TO RUN ON THEIR EXISTING COMPUTER NETWORKS USERS OF NETWARE NOVELL'S SOFTWARE THAT ENABLES COMPUTERS TO COMMUNICATE VIA NETWORKS AND UNIX AN OPERATING SYSTEM BACKED BY NOVELL WOULD BE AMONG THE BENEFICIARIES OF THIS MORE RAPID AVAILABILITY OF APPLICATIONS AN OPERATING SYSTEM PERFORMS THE BASIC FUNCTIONS OF A COMPUTER APPLICATIONS SUCH AS WORD PROCESSING OR SPREADSHEET FUNCTIONS ARE ADDED TO IT THE ANNOUNCEMENT SIGNALS A LOOMING BATTLE BETWEEN NOVELL MICROSOFT AND TALIGENT A JOINT VENTURE BETWEEN APPLE COMPUTER AND INTERNATIONAL BUSINESS MACHINES CORP NOVELL HAS LONG DOMINATED THE MARKET FOR NETWORKING SOFTWARE BUT MICROSOFT'S RECENTLY INTRODUCED WINDOWS NT AND TALIGENT'S PLANNED OPERATING SYSTEM ARE BOTH DESIGNED TO WORK ACROSS NETWORKS YESTERDAY IN NATIONAL TRADING ON THE OVERTHECOUNTER MARKET NOVELL COMMON CLOSED AT 2725 UP 125 CENTS ON VOLUME OF 23 MILLION SHARES ANALYSTS SAY IT IS TOO SOON TO KNOW WHETHER APPWARE WILL BE BROADLY EMBRACED BY SOFTWARE DEVELOPERS MUCH DEPENDS ON ITS COST AND PERCEIVED RELIABILITY NOVELL SAID IT WOULDN'T COMMENT FOR NOW ON PRICING AND IT WON'T SHIP UNTIL OCTOBER RICH EDWARDS AN ANALYST WITH ROBERTSON STEPHENS & CO SAID HE THINKS THE SOFTWARE COULD SELL FOR LESS THAN 100 A COPY HE COMPARED NOVELL'S STRATEGY TO A REVERSE GILLETTE APPROACH THAT IS GIVING AWAY RAZOR BLADES TO SELL MORE RAZORS HE SAID NOVELL IS BETTING THAT THE SPREAD OF APPWARE COULD RESULT IN SHARPLY INCREASED SALES OF NETWARE 9306290125 930629 WHO'S NEWS SPIEGEL INC SPIEGEL INC DOWNERS GROVE ILL RICHARD T FERSCH 43 YEARS OLD WAS NAMED PRESIDENT OF EDDIE BAUER A UNIT OF THIS SPECIALTY RETAILER THAT MARKETS PRODUCTS THROUGH CATALOGS AND 270 STORES MR FERSCH PREVIOUSLY EDDIE BAUER'S EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDS WAYNE BADOVINUS WHO RESIGNED LAST JULY 9306290124 930629 WHO'S NEWS STANLEY WORKS TAPS HUNTER AS PRESIDENT IN EXECUTIVE SHUFFLE NEW BRITAIN CONN STANLEY WORKS REVAMPED ITS EXECUTIVE SUITE NAMING A NEW PRESIDENT AND CHIEF OPERATING OFFICER AND ELIMINATING TWO GROUP VICE PRESIDENT POSITIONS R ALAN HUNTER 46 YEARS OLD PREVIOUSLY VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE JULY 1 HE WILL TAKE OVER THE TITLES FROM RICHARD H AYERS 51 WHO WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE TOOL AND HARDWARE MAKER WHICH HAD 222 BILLION IN SALES IN 1992 A COMPANY SPOKESMAN SAID MR HUNTER'S PROMOTION STEMMED FROM THE PLANNED RETIREMENT OF DAVID M HADLOW GROUP VICE PRESIDENT BUILDERS/INDUSTRIAL PRODUCTS AND THE RETIREMENT EARLIER THIS YEAR OF ROBERT G WHIDHAM GROUP VICE PRESIDENT CONSUMER PRODUCTS MR HADLOW PLANS TO STEP DOWN ON HIS 65TH BIRTHDAY IN AUGUST IN ADDITION RICHARD HUCK CURRENTLY VICE PRESIDENT AND CONTROLLER WILL BECOME VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER MR HUCK 48 SUCCEEDS MR HUNTER JULY 1 THERESA F PRIME 37 WILL SUCCEED MR HUCK AS VICE PRESIDENT AND CONTROLLER 9306290123 930629 INTERNATIONAL TSINGTAO BREWERY CO OF CHINA PLANS TO LIST SHARES IN HONG KONG HONG KONG TSINGTAO BREWERY CO DISCLOSED PLANS TO BECOME THE FIRST STATEOWNED CHINESE COMPANY TO LIST SHARES DIRECTLY ON A FOREIGN EXCHANGE THROUGH AN OFFER OF 35 OF ITS STOCK ON THE HONG KONG MARKET AS PART OF THE OFFERING CHINA'S BIGGEST BEER MAKER WILL SELL A 5 STAKE TO US BREWER ANHEUSERBUSCH COS WHICH CONTINUES TO PUSH ITS INTERNATIONAL EXPANSION TSINGTAO'S OFFERING IS THE FIRST OF NINE EXPECTED FROM THE MAINLAND THE OFFERING WAS MADE POSSIBLE BY NEW RULES GOVERNING THE SALE OF SOCALLED H SHARES WHICH WILL BE DENOMINATED IN HONG KONG DOLLARS AND TRADE ON THE COLONY'S STOCK EXCHANGE PREVIOUSLY FOREIGN INVESTORS COULD INVEST DIRECTLY IN STATEOWNED COMPANIES ONLY THROUGH B SHARES TRADING ON THE SHANGHAI AND SHENZHEN EXCHANGES THE COMPANY WILL SELL ITS NEW SHARES FOR HK280 36 US CENTS EACH IT EXPECTS ITS SHARES TO START TRADING JULY 15 THE COMPANY SHOULD RECEIVE NET PROCEEDS OF ABOUT HK8593 MILLION FROM THE OFFERING OF WHICH HK3796 MILLION WILL GO TO REPAY US DOLLARDENOMINATED LOANS THE REST WILL BE SPENT ON THE DEVELOPMENT OR EXPANSION OF ITS FOUR BREWERIES THE COMPANY IS EAGER TO REPAY ITS FOREIGN LOANS TO ESCAPE FURTHER LOSSES DUE TO THE FALLING VALUE OF THE YUAN JOHN KOYKKA VICE PRESIDENT OF FINANCE AT ANHEUSERBUSCH INTERNATIONAL INC SAID THE TSINGTAO PURCHASE WAS ANHEUSERBUSCH'S FIRST DIRECT EQUITY INVESTMENT IN AN ASIAN BREWER WE WANT TO FORM A BROAD STRATEGIC ALLIANCE WITH TSINGTAO HE SAID THE 164 MILLION TSINGTAO INVESTMENT IS THE LATEST IN A SERIES OF OVERSEAS ALLIANCES ANNOUNCED BY ANHEUSERBUSCH WHICH MAKES BUDWEISER AND HOLDS A DOMINATING 44 SHARE OF THE US BEER MARKET EARLIER THIS YEAR IT PAID 477 MILLION FOR AN 18 STAKE IN MEXICO'S GRUPO MODELO SA IT ALSO ANNOUNCED A JOINT VENTURE WITH KIRIN BREWERY CO ONE OF JAPAN'S LARGEST BREWERS UNDER WHICH KIRIN WILL DISTRIBUTE BUDWEISER BEER IN JAPAN 9306290122 930629 BIOCONTROL TECHNOLOGY PRODUCT INDIANA PA BIOCONTROL TECHNOLOGY INC SAID ITS DIASENSE INC UNIT COMPLETED PHASE I CLINICAL TRIALS OF A PRODUCT THAT MONITORS GLUCOSE LEVELS FOR DIABETICS PHASE II TESTS ARE SCHEDULED TO BEGIN IN MIDJULY THE PRODUCT CANNOT BE MARKETED UNTIL IT RECEIVES FOOD AND DRUG ADMINISTRATION APPROVAL THE COMPANY HOPES THIS WILL OCCUR BY THE END OF THIS YEAR OR EARLY NEXT YEAR SEPARATELY BIOCONTROL SAID ITS PETROL REM INC UNIT COMPLETED A MANUFACTURING PLANT AND IS NOW MAKING PETROLEUM REMEDIATION PRODUCT FOR THE BIOREMEDIATION OF OIL SPILLS 9306290121 930629 WHO'S NEWS FEDERATED DEPARTMENT STORES INC FEDERATED DEPARTMENT STORES INC CINCINNATI MARNA C WHITTINGTON 46 YEARS OLD WAS ELECTED A DIRECTOR AT THIS DEPARTMENT STORE RETAILER THE ELECTION OF DR WHITTINGTON WHO DIRECTS STRATEGIC PLANNING MARKETING AND CLIENT SERVICES AT MILLER ANDERSON & SHERRERD A PRIVATE INVESTMENT ADVISORY FIRM IN WEST CONSHOHOCKEN PA INCREASES THE BOARD TO 13 MEMBERS 9306290120 930629 PHYSICIANS INSURANCE CO PICKERINGTON OHIO PHYSICIANS INSURANCE CO SAID IT COMPLETED ITS PLAN TO BUY THE ENTIRE STAKE OF ITS CONTROLLING SHAREHOLDER SINCE 1976 OHIO STATE MEDICAL ASSOCIATION UNDER TERMS OF THE AGREEMENT THE MEDICAL PROFESSIONAL LIABILITY INSURANCE CONCERN'S CLASS A SHAREHOLDERS BOUGHT ALL 36000 OF THE ASSOCIATION'S CLASS B SHARES FOR 1 MILLION CLASS B SHARES REPRESENT 100 VOTES EACH PHYSICIANS INSURANCE SHAREHOLDERS ALSO APPROVED A PLAN TO GIVE QUAKER HOLDINGS LTD A SAN DIEGOBASED INVESTMENT FIRM A 30 STAKE IN THE COMPANY IN RETURN FOR A 5 MILLION CASH INFUSION 9306290119 930629 TECHNOLOGY & HEALTH APPLE MAY USE INTEL 486 CHIPS IN MACINTOSH BY KEN YAMADA STAFF REPORTER OF THE WALL STREET JOURNAL APPLE COMPUTER INC HAS BEEN QUIETLY TRYING TO IMPROVE ITS MACINTOSH COMPUTERS WITH TECHNOLOGY GLEANED FROM COMPETITORS USING INTEL CORP COMPUTER CHIPS IN A RADICAL DEPARTURE FROM ITS PROPRIETARY DESIGN STRATEGY THE CUPERTINO CALIF COMPUTER MAKER IS CONSIDERING USING INTEL'S 486 MICROPROCESSORS IN SOME MACINTOSH MODELS ACCORDING TO PEOPLE FAMILIAR WITH APPLE'S PLANS INTEL'S 486 CHIP SERVES AS THE BRAIN OF MOST IBMCOMPATIBLE PCS APPLE HAS BEGUN WORK ON A NOTEBOOK VERSION OF A DUALMODE MACINTOSH USING THE 486 CHIP THOSE PEOPLE SAID THE PROJECT IS IN THE EARLY STAGES OF DEVELOPMENT AND APPLE HAS NOT YET DECIDED IF IT WILL RESULT IN A PRODUCT THEY SAID APPLE WOULD NOT COMMENT THE INTEL CHIPS WOULDN'T REPLACE THE MOTOROLA INC MICROPROCESSORS CURRENTLY USED IN MACINTOSHES RATHER THE INTEL CHIP WOULD SERVE AS A SECOND BRAIN ALLOWING A SINGLE MACHINE TO ACT AS A MACINTOSH OR WITH THE FLICK OF A SWITCH AN IBMCOMPATIBLE MACHINE RUNNING MICROSOFT CORP'S POPULAR WINDOWS PROGRAMS THE ADDED FEATURE WOULD ADD APPEAL TO COMPUTERS MADE BY APPLE WHICH HAS BEEN HARD HIT BY PRICING PRESSURES AND COMPETITION FROM THE IBMCOMPATIBLE MACHINES APPLE IS ALSO WORKING ON ANOTHER PROJECT TO PUT A 486 CHIP IN ITS QUADRA AND CENTRIS DESKTOP MODELS ACCORDING TO MACWEEK A TRADE PUBLICATION BUT THE 486CHIP PROJECTS WILL FACE CLOSE SCRUTINY WHEN APPLE BEGINS EXPECTED COSTCUTTING MEASURES SOON AND IT MAY CHOOSE TO JETTISON THE PROJECTS THE SOURCES SAID A DUALMODE MACHINE WOULD SERVE A NICHE MARKET OF PEOPLE WHO NEED TO WORK WITH THE TWO COMPUTER SYSTEMS BUT FOR MOST PEOPLE ONE COMPUTER SYSTEM IS ENOUGH A DUALMODE SYSTEM WON'T SOLVE APPLE'S PROBLEMS SAID ANDY SEYBOLD EDITOR IN CHIEF OF OUTLOOK ON PROFESSIONAL COMPUTING AN INDUSTRY NEWSLETTER APPLE HAS ALSO BEEN TRYING TO TAKE ADVANTAGE OF THE APPEAL OF IBMCOMPATIBLE MACHINES IN OTHER WAYS IT IS WORKING WITH NOVELL INC ON MAKING ITS SOFTWARE WORK ON PCS AND OFFERS SOFTWARE WHICH ALLOW PCS AND MACINTOSHES TO SWAP DATA APPLE HAS BEEN DESPERATELY SEARCHING FOR WAYS TO EXPAND ITS BUSINESS GAINS MADE BY MICROSOFT WINDOWS AND INTELBASED SYSTEMS HAVE HURT APPLE'S EARNINGS FORCING IT TO LOWER ITS PRICES PUMMELING PROFIT MARGINS 9306290118 930629 TECHNOLOGY & HEALTH AIDS PANEL DISBANDS TELLS OF FRUSTRATIONS BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL COMMISSION ON AIDS DISBANDED PRESENTING A FINAL REPORT THAT EXPRESSED FRUSTRATION AND SADNESS OVER THE COUNTRY'S PROGRESS IN FIGHTING THE DISEASE SADLY WE MUST CONTINUE TO REPORT THAT AMERICA IS STILL DOING POORLY THE REPORT SAID OUR WARNINGS HAVE FALLEN FAR SHORT OF THEIR INTENDED EFFECT THE COMMISSION CHASTISED POLITICAL LEADERS PARTICULARLY THE BUSH ADMINISTRATION FOR COMPLACENT UNRESPONSIVENESS IN IMPLEMENTING THE GROUP'S PAST RECOMMENDATIONS WHICH INCLUDED SUCH MEASURES AS UNIVERSAL HEALTH INSURANCE NEEDLEEXCHANGE PROGRAMS AND LIFTING OF GOVERNMENT RESTRICTIONS TO ALLOW FEDERAL FUNDING FOR MORE RESEARCH ON SEXUAL BEHAVIOR AND FRANKER TALK ON THE CAUSES OF ACQUIRED IMMUNE DEFICIENCY SYNDROME IN A NEWS CONFERENCE UNVEILING THE REPORT COMMISSIONER AFTER COMMISSIONER CALLED FOR GREATER LEADERSHIP PARTICULARLY FROM THE PRESIDENT THEY EXPRESSED HOPE THAT PRESIDENT CLINTON WHO SPOKE OFTEN ABOUT AIDS IN THE PRESIDENTIAL CAMPAIGN AND LAST WEEK NAMED THE FIRST AIDS CZAR WOULD MEET THE CHALLENGE IT SIMPLY DOES NOT HAVE TO BE SAID COMMISSION MEMBER DON DES JARLAIS A LEADING RESEARCHER ON DRUG ADDICTION AND THE SPREAD OF HIV THE VIRUS THAT CAUSES AIDS WE ACTUALLY KNOW WHAT HAS TO BE DONE TO PREVENT HIV IN A COUNTRY WITH THE RESOURCES OF THE US WE SHOULD BE ABLE TO CUT THE RATE OF NEW HIV BY THREEFOURTHS MAYBE MORE THE COMMISSION'S FINAL REPORT CONTAINED TWO OVERARCHING RECOMMENDATIONS THAT LEADERS AT ALL LEVELS OF GOVERNMENT SPEAK FRANKLY AND OPENLY ABOUT AIDS AND THAT THE FEDERAL GOVERNMENT DEVELOP A CLEAR WELLARTICULATED NATIONAL PLAN FOR COMBATING THE DISEASE AS OF MARCH 31 289320 PEOPLE HAVE BEEN DIAGNOSED WITH AIDS IN THE US AND 63 OR 182275 HAVE DIED SINCE JUNE 1 1981 ACCORDING TO THE CENTERS FOR DISEASE CONTROL ABOUT 50000 NEW CASES ARE DIAGNOSED EACH YEAR THE COMMISSION SAID THE COMMISSION WAS ESTABLISHED IN 1989 AND GIVEN A FOURYEAR CHARTER ITS MEMBERS WERE APPOINTED BY PRESIDENT BUSH AND DEMOCRATIC LEADERS OF CONGRESS THE MOST WRENCHING MOMENT IN THE COMMISSION'S FINAL NEWS CONFERENCE CAME WHEN MARY FISHER A MOTHER OF TWO WHO IS INFECTED WITH THE AIDS VIRUS AND WHOSE HUSBAND DIED JUST OVER A WEEK AGO SPOKE WE ARE FRANKLY DESPERATE FOR NATIONAL LEADERSHIP IN THE ARENA OF AIDS SAID MS FISHER WHO ADDRESSED THE REPUBLICAN NATIONAL CONVENTION LAST YEAR 9306290117 930629 JUSTICES RULE AGAINST BUSINESS IN EVIDENCE CASE RESTRICTIVE STANDARD FOR USE OF SCIENTIFIC TESTIMONY IN TRIALS IS STRUCK DOWN BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT REJECTED A STRICT STANDARD THAT HAS BEEN WIDELY USED BY FEDERAL JUDGES TO KEEP SCIENTIFIC EVIDENCE OUT OF PERSONALINJURY LAWSUITS AND OTHER TRIALS THE UNANIMOUS DECISION WAS A DEFEAT FOR BUSINESS AND THE MEDICAL PROFESSION WHICH HAVE ARGUED FOR YEARS THAT THEY ARE SUBJECTED TO COUNTLESS CONSUMER LAWSUITS BASED ON DUBIOUS SCIENTIFIC EVIDENCE YESTERDAY'S RULING FAVORED TWO CALIFORNIA FAMILIES WHO ALLEGED IN A LAWSUIT THAT THE ANTINAUSEA DRUG BENDECTIN CAUSED DEFORMITIES IN THEIR CHILDREN AFTER THE MOTHERS TOOK THE MEDICATION DURING PREGNANCY WRITING FOR THE HIGH COURT JUSTICE HARRY BLACKMUN SAID THE FEDERAL RULES OF EVIDENCE SHOULD BE USED AS THE STANDARD IN DETERMINING WHETHER SCIENTIFIC EVIDENCE IS ADMISSIBLE IN ADDITION TO REQUIRING THAT ALL EVIDENCE BE RELEVANT THE RULES PERMIT A QUALIFIED EXPERT TO OFFER OPINIONS OR SUMMARIES OF RESEARCH IF SUCH SCIENTIFIC EXPERTISE WOULD HELP THE JURY UNDERSTAND THE CASE JUSTICE BLACKMUN SAID THE RULES WHICH TOOK EFFECT IN 1975 SUPERSEDE THE MORE RESTRICTIVE STANDARD FOR SCIENTIFIC TESTIMONY PREFERRED BY BUSINESS THAT STANDARD BASED ON A 1923 FEDERAL APPEALS COURT RULING REQUIRES THAT SCIENTIFIC EVIDENCE BE BASED ON RESEARCH TECHNIQUES GENERALLY ACCEPTED IN THE RELEVANT SCIENTIFIC COMMUNITY RESPONDING TO ARGUMENTS THAT THE FEDERAL RULES ALLOW A FREEFORALL OF PSEUDOSCIENTIFIC TESTIMONY JUSTICE BLACKMUN ASSERTED THAT VIGOROUS CROSSEXAMINATION CONTRARY EVIDENCE AND JUDICIAL SUPERVISION ARE SUFFICIENT TO ENSURE FAIR TRIALS THE SUPREME COURT SET ASIDE A LOWERCOURT RULING THAT APPLIED THE GENERALACCEPTANCE STANDARD BY INSISTING THAT SCIENTIFIC TESTIMONY BE BASED ON RESEARCH THAT HAD BEEN PUBLISHED IN ACADEMIC JOURNALS AFTER UNDERGOING PEER REVIEW THOUGH HE SAID GENERAL ACCEPTANCE SHOULDN'T BE A BINDING REQUIREMENT JUSTICE BLACKMUN NOTED THAT JUDGES MAY CONTINUE TO CONSIDER PEER REVIEW PUBLICATION AND OTHER INDICATIONS THAT SCIENTIFIC TESTIMONY IS RELIABLE THE INCLUSION OF THESE AND OTHER GENERAL OBSERVATIONS AS JUSTICE BLACKMUN CALLED THEM MAY PROMPT SOME JUDGES WHO ARE SKEPTICAL OF NOVEL SCIENTIFIC EVIDENCE TO CONTINUE TO REJECT ITS USE IN COURT CHIEF JUSTICE WILLIAM REHNQUIST JOINED BY JUSTICE JOHN PAUL STEVENS WARNED IN A SEPARATE OPINION THAT THE GENERAL OBSERVATIONS WOULD CAUSE MORE CONFUSION THAN CLARIFICATION THE CHIEF JUSTICE SAID HE WOULD HAVE SIMPLY STATED THAT THE GENERALACCEPTANCE STANDARD ISN'T VALID AND LEFT IT UP TO TRIAL JUDGES TO APPLY THE FEDERAL RULES PRODUCED BY MERRELL DOW PHARMACEUTICALS A PREDECESSOR OF MARION MERRELL DOW INC BENDECTIN WAS WIDELY USED UNTIL THE EARLY 1980S WHEN IT WAS TAKEN OFF THE MARKET IN THE FACE OF MOUNTING LAWSUITS MERRELL DOW HAS CONTENDED THAT THE DRUG WAS SAFE IN THE SUIT FILED BY THE CALIFORNIA FAMILIES A FEDERAL JUDGE RULED IN FAVOR OF MERRELL DOW BEFORE TRIAL CONCLUDING THAT THE PLAINTIFFS COULDN'T PROVE BENDECTIN HAD CAUSED THEIR CHILDREN'S BIRTH DEFECTS THE FEDERAL APPEALS COURT IN SAN FRANCISCO UPHELD THE RULING BASED ON THE GENERALACCEPTANCE STANDARD THE APPELLATE COURT STRESSED THAT SOME OF THE TESTIMONY THAT THE PLAINTIFFS' EXPERTS PROPOSED TO OFFER WOULD BE BASED ON UNPUBLISHED REANALYSES OF EARLIER EPIDEMIOLOGICAL STUDIES MERRELL DOW PROPOSED TO OFFER UNCONTESTED TESTIMONY THAT NO PUBLISHED STUDY HAD SHOWN THAT BENDECTIN CAUSED BIRTH DEFECTS THE CASE NOW GOES BACK TO THE APPEALS COURT FOR FURTHER CONSIDERATION OF WHETHER THERE SHOULD BE A TRIAL DAUBERT VS MERRELL DOW PHARMACEUTICALS INC 9306290116 930629 CREDIT MARKETS TREASURY PRICES CONTINUE RISING TREND AS YIELD ON LONG BOND FALLS TO LOWEST POINT IN 16 YEARS BY THOMAS D LAURICELLA AND JOHN HUGHES SPECIAL TO THE WALL STREET JOURNAL NEW YORK MANY TREASURY YIELDS MOVED LOWER YESTERDAY WITH THE BENCHMARK 30YEAR BOND PLUNGING TO ITS LOWEST YIELD IN 16 YEARS THE 30YEAR BOND YIELDED 667 YESTERDAY DOWN FROM 670 ON FRIDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS YIELD ROSE NEARLY 1/2 POINT OR NEARLY 500 FOR A BOND WITH A 1000 FACE VALUE TO 105 27/32 ACCORDING TO TRADERS NO SINGLE FACTOR WAS BEHIND THE DROP IN YIELDS YESTERDAY YESTERDAY'S DROPS WERE THE CONTINUATION OF A SLOW GRIND THAT HAS PUSHED YIELDS STEADILY LOWER OVER THE PAST FEW WEEKS THEY SAID WITH THE EXCEPTION OF A BRIEF PAUSE IN EARLY JUNE THE YIELD OF THE 30YEAR BOND HAS DECLINED STEADILY SINCE MIDMAY WHEN THE BOND YIELDED 705 YESTERDAY'S PLUNGE LEFT THE BOND AT ITS LOWEST YIELD SINCE THE TREASURY BEGAN REGULARLY ISSUING 30YEAR BONDS IN 1977 MEANWHILE THE CORPORATE BOND MARKET SEEMED TO SUFFER A BIT OF INDIGESTION YESTERDAY WITH LACKLUSTER DEMAND MEETING A NUMBER OF ISSUES THE CANADIAN PROVINCE OF QUEBEC MADE YESTERDAY'S BIGGEST CORPORATE OFFERING THE SALE OF 1 BILLION OF NEW YANKEE BONDS YANKEE BONDS ARE DOLLARDENOMINATED SECURITIES SOLD IN THE US BY FOREIGN ENTITIES PRICE GAINS IN THE TREASURY MARKET TOOK PLACE IN LIGHT AND GENERALLY UNINSPIRED TRADING DEALERS SAID MANY SAID THE ONLY NOTABLE ACTIVITY TOOK PLACE DURING EARLY TRADING WHEN THERE WAS SOME HEAVY BUYING OF 10YEAR NOTES AS PART OF INTERESTRATE SWAPS EXECUTED IN THE WAKE OF A 1 BILLION TOKYO ELECTRIC POWER CO 10YEAR EUROBOND ISSUE OTHERWISE IT WAS JUST A GRADUAL PUSH HIGHER THROUGHOUT THE SESSION IT'S A GRINDING KIND OF MARKET SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC WHILE NO SPECIFIC PIECE OF NEWS PUSHED THE MARKET HIGHER PLAYERS CITED A NUMBER OF CONTINUING FACTORS THAT PROVIDED ROOM FOR THE RALLY AMONG THE MOST FREQUENTLY CITED REASONS WAS THE LACK OF NEW SUPPLY IN THE PAST THERE WOULD HAVE BEEN A SEVENYEAR NOTE OFFERING IN JULY BUT THE TREASURY DEPARTMENT DID AWAY WITH THE ISSUE AS PART OF AN OVERHAUL OF ITS BORROWING PRACTICES ANNOUNCED IN MAY AS A RESULT ASIDE FROM BILL AUCTIONS THERE ARE NO TREASURY AUCTIONS SCHEDULED UNTIL JULY 27 THAT MEANS THAT BY THE TIME THE NEXT NOTE AUCTION ROLLS AROUND IT WILL HAVE BEEN OVER A MONTH SINCE THE LAST COUPON OFFERINGS FIVE WEEKS WITHOUT NEW SUPPLY IS A LONG TIME IN THIS MARKET SAID RON CONNORS TRADING MANAGER AT BEAR STEARNS & CO MEANWHILE THE INFLATION SCARE DURING THE SPRING HAD PROMPTED MANY PORTFOLIO MANAGERS TO PUT OFF BUYING AND THEY INSTEAD ALLOWED THEIR CASH RESERVES TO BUILD UP THOSE INVESTORS ARE NOW HAVING TO CHASE AFTER THE MARKET SCRAMBLING TO JUST STAY NEUTRAL WITH THEIR BENCHMARKS AS THE END OF THE QUARTER APPROACHES FOR A LOT OF MONEY MANAGERS THERE IS ONLY SO LONG THAT YOU CAN SIT ON CASH UNTIL YOU GET PUSHED INTO THE MARKET SAID PAUL DENOON A PORTFOLIO MANAGER AT ALLIANCE CAPITAL MANAGEMENT I DON'T THINK THIS IS PEOPLE GETTING WILDLY BULLISH THEY JUST HAVE TO PUT CASH TO WORK MR DENOON ADDED DEALERS ALSO CONTINUE TO ENCOUNTER OTHER SOURCES OF DEMAND SUCH AS THE BUYING RELATED TO MUNICIPAL REFINANCING PROGRAMS AND THE POTENTIAL FOR SOME CASH TO SPILL INTO TREASURYS FROM A MAJOR MUNICIPAL CALL DATE THURSDAY BUT THE LOFTY PRICES ARE GIVING MANY TRADERS VERTIGO MOST SAY THAT THE WALL STREET DEALER COMMUNITY HAS BEEN TAKING A DEFENSIVE POSTURE THROUGHOUT THE MOVE TOWARD LOWER YIELDS ACCORDING TO MR CONNORS OF BEAR STEARNS DEALERS ARE NOW BEING FORCED TO BUY TREASURYS IN THE OPEN MARKET BECAUSE THEY HAVE BEEN KEEPING THEIR INVENTORIES LIGHT FOR SOME OF THOSE TRADERS THE NOTION THAT THE FEDERAL RESERVE COULD STILL BOOST INTEREST RATES RAISES A WARNING FLAG VAN SILER A MANAGING PARTNER AT RJ WALLS & CO SAID THAT WHILE THE YIELD ON THE LONG BOND COULD STILL HEAD LOWER IT'S HARD TO BET ON THAT WHEN YOU KNOW THAT THE NEXT MOVE BY THE FED IS GOING TO BE TO INCREASE INTEREST RATES ALSO UNDERPINNING THE MARKET'S ABILITY TO MOVE HIGHER ARE HOPES FOR FRIENDLY EMPLOYMENT AND INFLATION DATA FOR THIS FRIDAY'S JUNE EMPLOYMENT REPORT TRADERS SAID THEY HAVE BEEN RATCHETING EXPECTATIONS ON PAYROLLS LOWER INITIALLY MANY IN THE MARKET WERE LOOKING FOR A RISE IN NONFARM PAYROLLS OF 150000 BUT MANY NOW BELIEVE AN INCREASE CLOSER TO 100000 IS MORE LIKELY EXPECTATIONS ARE WANING ON THE EMPLOYMENT SIDE SAID MR CONNORS OF BEAR STEARNS AS A RESULT THE MARKET IS PROBABLY JUST GOING TO CREEP HIGHER INTO THE EMPLOYMENT NUMBER HE SAID IN ADDITION DEALERS ARE ALSO LOOKING FORWARD TO THE NEXT ROUND OF INFLATION DATA WHICH ARE DUE OUT IN MIDJULY WHERE A REDUCTION IN TOBACCO PRICES COULD RESULT IN A DECLINE IN THE INFLATION MEASURES MEANWHILE YESTERDAY THE TREASURY SOLD 2467 BILLION OF THREEMONTH AND SIXMONTH BILLS AT ITS REGULAR WEEKLY AUCTION THE THREEMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 305 FOR A COUPONEQUIVALENT YIELD OF 312 THE SIXMONTH BILL WAS SOLD AT AN AVERAGE DISCOUNT RATE OF 314 FOR A COUPONEQUIVALENT YIELD OF 323 HERE ARE THE RESULTS OF THE AUCTION RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPON EQUIVALENT YIELD IS BASED ON A 365DAY YEAR BOTH ISSUES ARE DATED JULY 1 THE 13WEEK BILLS MATURE SEP 30 1993 AND THE 26WEEK BILLS MATURE DEC 30 1993 AFTER SNAPPING UP 1 BILLION OF NEW BONDS FROM THE CANADIAN PROVINCE OF QUEBEC A CASE OF INDIGESTION SEEMED TO OVERCOME THE CORPORATE BOND MARKET AS DEALERS' ATTENTION TURNED TO CLEARING OUT SOME OF THE SURPLUS THEY HAD BUILT UP IN THEIR INVENTORIES DURING THE HEFTY ISSUANCE OF RECENT WEEKS MOST OF THE SESSION'S OFFERINGS OF NEARLY 2 BILLION OF NEW CORPORATE SECURITIES CAME BY EARLY AFTERNOON TRADING WAS VERY THIN IN THE SECONDARY INVESTMENTGRADE MARKET TRADERS SAID WITH PRICES SHADOWING TREASURYS HIGHER SHORTERTERM PAPER ENDED WITH A SLIGHT UPWARD BIAS WHILE ISSUES AT THE LONG END WERE AS MUCH AS 1/4 POINT HIGHER THIS IS A NEWISSUEDRIVEN MARKET AND CONSEQUENTLY SECONDARY SPREADS ARE GOING TO HAVE TO WIDEN IN ORDER FOR THE MARKET TO ABSORB SOME OF THE CURRENT INVENTORY BLOAT SAID A HIGHGRADE DEALER HE PREDICTED THAT SPREADS OR THE GAP BETWEEN THE YIELD PAID ON TREASURYS AND CORPORATE BONDS WOULD WIDEN 002 TO 005 PERCENTAGE POINT ACROSS THE BOARD BEFORE THE END OF THE WEEK DEALINGS FOR SEASONED JUNK BONDS WERE ABSOLUTELY DEAD A TRADER SAID IN THE JUNK SECTOR THE PRIME FOCUS IS NOW ON PRICING NEW DEALS ACCORDING TO TRADERS WHO NOTED THAT A NUMBER OF ISSUES ARE EXPECTED TO BE PRICED THIS WEEK QUEBEC BECAME THE LATEST CANADIAN PROVINCE TO SUCCESSFULLY ISSUE A 1 BILLION DEAL DESPITE BUDGETARY PROBLEMS THE PROVINCE'S 1 BILLION ISSUE OF YANKEE BONDS FOUND A BROAD ARRAY OF EAGER INVESTORS AND WAS SOLD OUT IN THE MIDRANGE OF MARKET EXPECTATIONS SAID A SPOKESMAN FOR LEAD UNDERWRITER FIRST BOSTON CORP THE CANADIAN PROVINCE OF ONTARIO RECENTLY SUCCEEDED IN DOUBLING ITS INITIALLY PLANNED 1 BILLION ISSUE OF GLOBAL BONDS DESPITE ALSO HAVING DIFFICULTIES IN BALANCING ITS BUDGET GLOBAL BONDS ARE DOLLARDENOMINATED BONDS ISSUED SIMULTANEOUSLY IN MARKETS AROUND THE WORLD IN A SINGLE CURRENCY AMONG UTILITIES POTOMAC ELECTRIC POWER CO TESTED THE MARKET BY ANNOUNCING IT WOULD OPEN UP FOR OFFERS TO SELL 100 MILLION OF 30YEAR FIRST MORTGAGE BONDS THE ONLY CONDITION WAS THE UTILITY WANTED THE DEAL DONE AT AN ALLINCOST TO THE COMPANY OF 740 OR LESS THE GAMBIT WORKED MERRILL LYNCH & CO WON THE DEAL AND REOFFERED THE PAPER AT 98711 TO YIELD 7357 OR 068 PERCENTAGE POINT ABOVE TREASURYS THE ISSUE IS NONCALLABLE FOR 10 YEARS IT'S RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP PRICES OF MUNICIPAL BONDS ENDED 1/8 TO 1/2 POINT HIGHER THE MARKET BEGAN THE WEEK IN STRONG SHAPE DUE LARGELY TO CONTINUED REINVESTMENTDRIVEN BUYING BEFORE MORE THAN 10 BILLION OF BOND CALLS ON JULY 1 MUNI SPECIALISTS SAY OTHER INFLUENCES WORKING IN FAVOR OF MUNIS ARE ABATING TAXEXEMPT ISSUANCE AND THE TREASURY MARKET'S FIRM TONE AMONG THE DAY'S BIG GAINERS WAS THE GREATER ORLANDO FLA AVIATION AUTHORITY'S 550 REVENUE REFUNDING BONDS OF 2018 THEY CLOSED 1/2 HIGHER AT 97 3/4 WITH A YIELD OF 563 SEPARATELY STANDARD & POOR'S CORP SAYS IN ITS LATEST EDITION OF CREDITWEEK MUNICIPAL THAT MUNI RATING DOWNGRADES EXCEEDED UPGRADES DURING A RELATIVELY QUIET SECOND QUARTER OF 1993 BASED ON PRELIMINARY DATA THE RATINGS ON 23 BILLION OF DEBT WERE DOWNGRADED AND RATINGS ON 14 BILLION OF SECURITIES WERE UPGRADED S&P SAYS THERE WERE 69 DOWNGRADES AND 40 UPGRADES S&P SAYS MOST OF THE DOWNGRADES WERE IN THE GENERAL OBLIGATION AND HOUSING AREAS CURRENTPRODUCTION MORTGAGE SECURITIES ENDED WITH SLIGHT GAINS WHILE SOME 65 ISSUES GAINED NEARLY 1/2 POINT THE 65 ISSUES THE ONLY MORTGAGE SECURITIES TO TRADE AT A DISCOUNT TO FACE VALUE ARE BECOMING RARE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 65 MORTGAGE SECURITIES FOR JULY DELIVERY FINISHED 15/32 HIGHER IN OTHER SECONDARY ACTIVITY GINNIE MAE 7 ISSUES FOR JULY DELIVERY ENDED 7/32 HIGHER AT 102 3/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR JULY DELIVERY BOTH ENDED 5/32 HIGHER AT 101 31/32 AND 101 26/32 RESPECTIVELY MEANWHILE THE EXOTIC SECURITIES KNOWN AS IOS WHICH ARE INTERESTONLY ISSUES CREATED BY STRIPPING THE INTERESTBEARING PORTION OF A SECURITY AWAY FROM ITS PRINCIPAL RACKED UP LOSSES FOR EXAMPLE THE IOS FROM FANNIE MAE STRIPS TRUSTS THAT ARE BACKED BY THAT AGENCY'S 7 MORTGAGE SECURITIES ENDED WITH LOSSES OF AS MUCH AS 5/8 POINT IOS GENERALLY FARE POORLY WHEN THE REST OF THE MARKET DOES WELL THE FALLING YIELDS SEEN WHEN PRICES INCREASE SPARK FEARS THAT HOMEOWNERS WILL REFINANCE THEIR MORTGAGE LOANS SINCE IOS ARE AS THE NAME IMPLIES MADE UP ENTIRELY OF THE INTEREST PAYMENTS GENERATED BY A LOAN THE ISSUES DISAPPEAR WHEN THE LOAN IS PAID OFF THROUGH REFINANCING THUS IOS ARE PERCEIVED AS RISKY 9306290115 930629 FIRST UNION CORP ACQUISITION CHARLOTTE NC FIRST UNION CORP COMPLETED ITS ACQUISITION OF GEORGIA FEDERAL BANK FROM FIRST FINANCIAL MANAGEMENT CORP FOR 154 MILLION IN ADDITION ATLANTABASED FIRST FINANCIAL MANAGEMENT SAID IT RECEIVED 115 MILLION IN DIVIDENDS FROM GEORGIA FEDERAL PRIOR TO THE DEAL'S CLOSING BRINGING THE TOTAL PROCEEDS TO 269 MILLION 9306290114 930629 BUSINESS BRIEF BEN & JERRY HOMEMADE INC STOCK FALLS 127 AS CONCERN SEES LOWER 2NDPERIOD NET BEN & JERRY'S HOMEMADE INC WATERBURY VT SAID SECONDQUARTER PERSHARE EARNINGS WOULD FALL BELOW EXPECTATIONS AS A RESULT OF SLOWERTHANEXPECTED SALES BECAUSE OF DELAYED PRODUCT INTRODUCTIONS THE ICE CREAM MAKER SAID NET INCOME WOULD BE ABOVE YEARAGO LEVELS BUT DIDN'T MAKE A SPECIFIC FORECAST IT SAID SECONDQUARTER SALES WILL RISE TO 37 MILLION FROM 358 MILLION THE STOCK FELL 350 TO 24 A DECLINE OF 127 IN NATIONAL OVERTHECOUNTER TRADING ANALYSTS HAD EXPECTED NET OF ABOUT 40 CENTS A SHARE WITH A RANGE OF 35 CENTS TO 42 CENTS IN THE YEARAGO QUARTER NET WAS 23 MILLION OR 39 CENTS A SHARE ON 20 FEWER SHARES SECONDQUARTER RESULTS ARE DUE IN LATE AUGUST SEPARATELY AT ITS ANNUAL MEETING ON SATURDAY HOLDERS APPROVED A DOUBLING IN AUTHORIZED CLASS A SHARES TO 20 MILLION 9306290113 930629 CREDIT RATINGS S&P SAYS UPGRADES ON CORPORATE DEBT OUTPACE DOWNGRADES NEW YORK CORPORATE DEBT UPGRADES OUTPACED DOWNGRADES FOR THE FIRST TIME SINCE THE FIRST QUARTER OF 1989 AS CORPORATE CREDIT QUALITY CONTINUES TO IMPROVE STANDARD & POOR'S CORP SAID S&P SAID PRELIMINARY DATA FOR THE SECOND QUARTER SHOWED RATINGS ROSE ON ABOUT 359 BILLION OF DEBT AND FELL ON ABOUT 33 BILLION THE TOTAL NUMBER OF UPGRADES WAS 85 COMPARED WITH 60 DOWNGRADES THE RATING AGENCY NOTED THAT CORPORATE CREDIT QUALITY BEGAN IMPROVING IN THE FIRST HALF OF 1992 ALTHOUGH DOWNGRADES 2591 BILLION GREATLY EXCEEDED UPGRADES 404 BILLION IN THE FIRST QUARTER THIS YEAR BOTH INDUSTRIALS AND FINANCIAL INSTITUTIONS SHOWED IMPROVEMENT WITH S&P UPGRADING 34 INDUSTRIAL CONCERNS AND DOWNGRADING 24 THE TOTALS FOR INDUSTRIALS WERE 102 BILLION IN UPGRADES AND 95 BILLION IN DOWNGRADES FINANCIAL INSTITUTIONS EXPERIENCED 45 UPGRADES AND 30 DOWNGRADES TOTALING 219 BILLION IN BOTH CASES SEPARATELY MUNICIPAL RATINGS CONTINUED A DOWNTREND WITH 69 DOWNGRADES AND 40 UPGRADES S&P LOWERED MUNICIPAL RATINGS ON APPROXIMATELY 23 BILLION OF DEBT WHILE RAISING RATINGS ON 14 BILLION HOWEVER UPGRADES EXCEEDED DOWNGRADES IN THE MUNICIPAL UTILITIES SECTOR WITH 500 MILLION OF UTILITY DEBT RAISED WHILE LESS THAN 50 MILLION WAS LOWERED 9306290112 930629 WORLD MARKETS TOKYO PRICES GAIN IN TECHNICALLY DRIVEN SESSION ON EXTREMELY THIN VOLUME LONDON SHARES RISE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO SHARES GAINED 12 MONDAY IN EXTREMELY THIN TECHNICALLY DRIVEN DEALINGS AS THE OVERALL EFFECT OF SUNDAY'S METROPOLITAN ELECTIONS ON THE MARKET WAS MINIMAL LONDON STOCKS ROSE AS INVESTORS GREW GENERALLY BULLISH WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10686 UP 112 REFLECTING INCREASES IN ASIA/PACIFIC AMERICAN AND EUROPEAN MARKETS AIRLINE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9633 UP 237 OR 25 WITH JAPAN AIRLINES OF JAPAN POSTING A 63 GAIN IN ITS LOCAL CURRENCY SHIPBUILDING STOCKS TRAILED AT 10127 DOWN 050 OR 05 WITH KEPPEL OF SINGAPORE SLIDING 19 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH FELL 2550 POINTS FRIDAY CLIMBED 22719 TO 1988676 ON TUESDAY THE NIKKEI FELL 11746 POINTS TO CLOSE THE MORNING SESSION AT 1976930 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 240 MILLION SHARES DOWN FROM 2618 MILLION SHARES FRIDAY AND THE LOWEST TURNOVER SINCE EARLY MARCH GAINERS SWAMPED LOSERS 754260 AMONG THE INVESTORS WHO DID TRADE THEY KEPT AN EYE ON THE OUTCOME OF THE ELECTIONS FOR THE TOKYO METROPOLITAN ASSEMBLY IN WHICH THE RULING PARTY AND A NEW CONSERVATIVE PARTY WON SEATS WHILE THE SOCIALISTS SUSTAINED LARGE LOSSES THE BALLOTING WAS VIEWED AS AN INDICATOR OF THE OUTCOME OF JULY 18 ELECTIONS FOR THE LOWER HOUSE OF THE DIET OR PARLIAMENT FOLLOWING THE GOVERNMENT'S FALL FROM THE LIBERAL DEMOCRATIC PARTY'S FAILURE TO IMPLEMENT REFORMS SOUGHT BECAUSE OF CORRUPTION SCANDALS BANKS AND OTHER JAPANESE STOCKS SENSITIVE TO INTEREST RATES RALLIED WITH THE YEN'S CONTINUED SURGE IN THE CURRENCY MARKETS FUELING SPECULATION THAT THE BANK OF JAPAN WILL CUT ITS OFFICIAL DISCOUNT RATE IMPORTDEPENDENT ISSUES ALSO FARED WELL AS THE JAPANESE CURRENCY'S STRENGTH MEANS LESS EXPENSIVE OUTLAYS AND IN THEORY WIDER PROFIT MARGINS THE NIKKEI MOVED HIGHER IN THE MORNING SESSION ON BUYING BY PUBLIC PENSION FUNDS AND DEALERS WHO WERE FREED TO STAKE NEW POSITIONS AS MONDAY WAS THE FIRST DAY OF TRADING FOR SETTLEMENT IN JULY ABOUT ONETHIRD OF THE INDEX'S GAINS CAME IN THE FINAL 10 MINUTES OF TRADING ON ARBITRAGE BUYING AFTER MOVING IN A NARROW RANGE DURING THE AFTERNOON IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 95 POINTS TO 28970 THE FT 30STOCK INDEX ADDED 38 POINTS TO 22683 VOLUME WAS 500 MILLION SHARES COMPARED WITH 509 MILLION SHARES IN THE PREVIOUS SESSION PARTICIPANTS WERE ENCOURAGED BY GAINS IN TOKYO AND HONG KONG AND BY WALL STREET'S SHAKING OFF ITS LETHARGY THE LONDON FUTURES MARKET JUMPED ON THE OVERSEAS TREND CARRYING THE STOCK MARKET HIGHER MEANWHILE THE POUND'S STRENGTH FUELED STILL MORE SPECULATION THAT BRITAIN WILL CUT ITS BASE LENDING RATE NOW 6 EVEN THOUGH A 55 RATE IS ALREADY CONSIDERED TO BE BUILT INTO STOCK PRICES A RATE REDUCTION COULD GIVE THE MARKET A BOOST IN FRANKFURT STOCKS ROSE IN QUIET TRADING THE DAX 30STOCK INDEX ADDED 1196 POINTS TO 170720 AFTER TRADING IN A RANGE OF ONLY SLIGHTLY MORE THAN FIVE POINTS MOST OF YESTERDAY'S ACTION WAS IN THE AUTO SECTOR IN WHICH FOREIGN INVESTORS WERE BUYING SHARES TO BALANCE PORTFOLIOS CONSUMERPRICE DATA RELEASED LAST FRIDAY AND YESTERDAY BY GERMAN STATES SHOWED INFLATION STABILIZING WHICH COULD ADD TO PRESSURE FOR LOWER INTEREST RATES PARIS EQUITIES RALLIED 15 ON INDEXLINKED ACTIVITY AND BLUE CHIPS GAINED ACROSS THE BOARD VOLUME WAS HEAVY IN MOST OF THE BIG INDUSTRIAL AND FINANCIAL SHARES THE HEAVY TRADING IN BASKETS OF STOCKS REFLECTED EARLY UNWINDING OF POSITIONS AHEAD OF THURSDAY'S EXPIRATION OF THE JUNE FUTURES CONTRACT FOREIGN INVESTORS BOUGHT MOVES VIEWED AS POSITIONING AHEAD OF ANTICIPATED RATE CUTS AMSTERDAM PRICES WENT UP ON A FIRM DOLLAR AND EXPECTATIONS OF LOWER GERMAN INTEREST RATES THOUGH VOLUME REMAINED MODEST MILAN STOCKS FIRMED IN VOLATILE TRADING THOUGH FURTHER BAD NEWS ABOUT THE AGROINDUSTRIAL AND CHEMICAL GROUP MONTEDISON A UNIT OF FINANCIALLY BELEAGUERED FERRUZZI FINANZIARIA KNOCKED THE MARKET OFF EARLY HIGHS MONTEDISON RESTATED ITS 1992 RESULTS TO SHOW A WIDER LOSS FERRUZZI AND MONTEDISON SHARES HAVE BEEN SUSPENDED BUT THE NEWS HURT THE BROADER MARKET STOCKHOLM SHARES ADVANCED IN THIN TRADING SUPPORTED BY THE FIRM DOLLAR AND THE UPWARD TREND IN MAJOR EUROPEAN MARKETS ZURICH STOCKS CLIMBED HANDILY LED BY BANKING ISSUES ON SIGNS OF EASING INTEREST RATES IN SWITZERLAND AND ELSEWHERE IN EUROPE IN SYDNEY WHERE A FLIGHT TO GOLD AS A HAVEN FOR INVESTMENT WAS PROMPTED BY THE US MISSILE STRIKE ON IRAQ SHARE PRICES BROKE A THREEDAY STRING OF DECLINES TO CLOSE HIGHER ON A RISE IN THE PRICE OF GOLD HONG KONG SHARES FINISHED SOLIDLY HIGHER ON NEWS THAT SINOBRITISH TALKS ON FINANCING THE COLONY'S NEW AIRPORT WILL RESUME LATER THIS WEEK REBOUNDS IN SINGAPORE AND MANILA EACH RESULTED MAINLY FROM TECHNICAL FACTORS TAIPEI STOCKS FELL ON PESSIMISM ABOUT MARKET PROSPECTS FOLLOWING WEEKEND NEWS THAT MAY ECONOMIC INDICATORS FOR TAIWAN CONTINUED TO SHOW A SLOWING ECONOMY SEOUL EQUITIES FELL SHARPLY ON JITTERS ABOUT A SOUTH KOREAN FINANCIAL REFORM PLAN AND A POSSIBLE INTENSIFICATION OF MIDEAST TENSIONS AMONG CORPORATE DEVELOPMENTS IN SYDNEY GOODMAN FIELDER WATTIE ROSE 4 CENTS TO 146 AUSTRALIAN DOLLARS 99 US CENTS THE FOOD COMPANY SAID IT INTENDED TO MAINTAIN ITS FINAL DIVIDEND FOR THE FISCAL YEAR ENDING TOMORROW AT SIX CENTS A SHARE 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 9306290111 930629 ITT TO PURCHASE DESERT INN IN LAS VEGAS FROM KERKORIAN FOR ABOUT 160 MILLION BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL ITT CORP AGREED TO BUY THE DESERT INN HOTELCASINO IN LAS VEGAS FROM BILLIONAIRE INVESTOR KIRK KERKORIAN FOR ABOUT 160 MILLION PLANTING THE FLAG OF ANOTHER BIG CORPORATE PLAYER IN THE FASTGROWING CASINO INDUSTRY THE 185ACRE SITE ALONG THE LAS VEGAS STRIP INCLUDES AN 821ROOM HOTEL A 17000SQUAREFOOT CASINO AN 18HOLE CHAMPIONSHIP GOLF COURSE AND AN ADJACENT UNDEVELOPED 34ACRE PARCEL ALTHOUGH THE DESERT INN HAS OPERATED AS A SPECIALTY RESORT CATERING TO HIGH ROLLERS THE PROPERTY IS CONSIDERED ONE OF THE CITY'S MOST PROMISING FOR A BIG CASINO COMPLEX OR OTHER ATTRACTION ITT SAID EXPANSION PLANS PROBABLY WON'T BE COMPLETED UNTIL THE END OF THE YEAR BUT THE COMPANY WILL INVEST A SUBSTANTIAL AMOUNT OF TIME AND MONEY TO MAKE IT THE FLAGSHIP CASINO OF ITS ITT SHERATON HOTEL SUBSIDIARY TO RIVAL THE CITY'S BIGGEST AND MOST PROFITABLE RESORTS THIS WON'T JUST BE THE DESERT INN SAID RAND ARASKOG ITT'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE WE WANT SOMETHING THAT COMPLEMENTS IT IN A SIGNIFICANT WAY AND THAT WILL BE A TREMENDOUS SHOWPLACE BY ITSELF HE SAID TO PUT THE FACILITY INTO THAT LEAGUE ITT LIKELY WILL SPEND HUNDREDS OF MILLIONS OF DOLLARS TO EITHER EXPAND THE EXISTING CASINO ADD ATTRACTIONS OR BUILD A SEPARATE ADJACENT CASINO RESORT AIMED AT MIDDLEMARKET CUSTOMERS WE'RE NOT LOOKING FOR A THEME PARK MR ARASKOG SAID MR KERKORIAN PAID 130 MILLION IN DECEMBER 1991 TO BUY THE DESERT INN BACK FROM PUBLICLY TRADED MGM GRAND INC IN WHICH HE ALSO HOLDS A CONTROLLING INTEREST ALTHOUGH A SPOKESMAN FOR MR KERKORIAN DECLINED TO ELABORATE ON THE SALE THE INVESTOR HAS BEEN SPENDING A FAIR AMOUNT OF MONEY TO REFURBISH THE RESORT AND THE 160 MILLION PRICE TAG IS THOUGHT TO BE CLOSE TO BOOK VALUE ROBERT A BOWMAN ITT'S EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE SALE IS EXPECTED TO BE COMPLETED BY NOVEMBER PENDING REGULATORY APPROVAL AND THE GRANTING OF A STATE CASINO LICENSE ITT HAS BEEN LOOKING AT THE CASINO BUSINESS FOR YEARS AND HAS AT VARIOUS TIMES APPROACHED NEARLY EVERY MAJOR CASINO OPERATOR IN LAS VEGAS ITT PAID 15 MILLION FOR A SMALL PARCEL OF LAND OFF THE STRIP IN 1989 THAT PARCEL IS NOW FOR SALE MR BOWMAN SAID ITT ALSO HOLDS AN 115 STAKE IN THE TOBEISSUED EQUITY OF BALLY'S GRAND CASINO WHICH IS SET TO EMERGE FROM BANKRUPTCY PROCEEDINGS THIS WEEK FIDELITY MANAGEMENT CORP OF BOSTON HAS AGREED TO AN EQUITY SWAP WITH BALLY MANUFACTURING CORP THAT WILL GIVE CHICAGOBASED BALLY MORE THAN 40 OF THE NEW COMPANY'S EQUITY AND ITT SAID IT IS STUDYING ITS INVESTMENT IN THAT LAS VEGAS PROPERTY MR ARASKOG SAID THE COMPANY ISN'T NERVOUS ABOUT ENTERING LAS VEGAS AS THREE COMPETITORS GEAR UP TO OPEN MAJOR NEW THEME RESORTS AND ADD 10500 ROOMS TO THE MARKET MGM GRAND IS BUILDING A 1 BILLION HOTELCASINO AT THE OPPOSITE END OF THE STRIP WHICH WILL INCLUDE THE CITY'S FIRST THEME PARK AND THE WORLD'S BIGGEST HOTEL WITH 5000 ROOMS THE PROJECT IS SCHEDULED TO OPEN IN EARLY 1994 MIRAGE RESORTS INC IS BUILDING TREASURE ISLAND A 3000ROOM STRIP CASINOHOTEL WITH A PIRATE THEME AND CIRCUS CIRCUS ENTERPRISES INC IS BUILDING THE LUXOR CASINO WHICH WILL INCLUDE 2500 ROOMS AND ENTERTAINMENT ATTRACTIONS FEATURING HIGHTECHNOLOGY SPECIAL EFFECTS BOTH PROJECTS ARE SCHEDULED TO OPEN IN OCTOBER AND CIRCUS ALSO PLANS TO OPEN GRAND SLAM CANYON A DOMED INDOOR AMUSEMENT ATTRACTION AT THE CIRCUS CIRCUS CASINO ITT SHERATON PLANS TO EXPLOIT ITS HOTEL RESERVATION SERVICE CONVENTION BUSINESS AND INTERNATIONAL PRESENCE TO CARVE OUT A MAJOR POSITION IN THE GAMBLING INDUSTRY ITT SHERATON ALSO IS BIDDING ON CASINO PROJECTS IN AUSTRALIA AND ELSEWHERE AND THE SHERATON NAME ALREADY FLIES ON GAMBLING PROPERTIES IN ISTANBUL EGYPT AND OTHER OVERSEAS SITES GAMBLING MAY ACCOUNT FOR HALF OF THE SHERATON CHAIN'S PROFIT IN SEVEN TO 10 YEARS MR ARASKOG SAID ITT'S SHERATON UNIT IS A VISIBLE BUT RELATIVELY SMALL PIECE OF ITT'S TOTAL HOLDINGS THE CHAIN REPORTED AN OPERATING LOSS OF 28 MILLION ON 778 MILLION IN REVENUE FOR 1992 COMPARED WITH 2165 BILLION IN TOTAL REVENUE FOR THE PARENT CONCERN IN A BROADLY HIGHER MARKET YESTERDAY ITT JUMPED 3 TO 8675 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9306290110 930629 BUSINESS BRIEF WAINOCO OIL CORP SECONDQUARTER EARNINGS LIKELY TO TRAIL '92 FIGURE WAINOCO OIL CORP SAID IT EXPECTS ITS SECONDQUARTER EARNINGS TO BE LOWER THAN LAST YEAR'S QUARTER THE HOUSTON COMPANY CITED INVENTORY VALUATION PROBLEMS BECAUSE OF ACCOUNTING RULES HIGHER REFINERY OPERATING COSTS AND REFINERY DOWN TIME FOR THE POORERTHANEXPECTED RESULTS IN THE SECOND QUARTER OF 1992 THE PETROLEUM EXPLORATION PRODUCTION AND REFINING CONCERN EARNED 56 MILLION OR 25 CENTS A SHARE ON 1043 MILLION IN REVENUE WAINOCO BASES ITS REVISED FORECAST ON PRELIMINARY RESULTS FOR THE FIRST TWO MONTHS OF THE QUARTER IN APRIL AND MAY THE COMPANY HAD ABOUT 593 MILLION IN REVENUE AND 23 MILLION IN OPERATING EARNINGS AND A NET LOSS OF ABOUT 970000 FOR THE FIRST TWO MONTHS OF 1992'S SECOND QUARTER WAINOCO HAD REVENUE OF 661 MILLION OPERATING EARNINGS OF 43 MILLION AND A NET INCOME OF 17 MILLION 9306290109 930629 WHO'S NEWS ALLIEDSIGNAL SELECTS WESTINGHOUSE OFFICIAL AS TECHNOLOGY CHIEF MORRIS TOWNSHIP NJ ALLIEDSIGNAL INC NAMED ISAAC R BARPAL A 22YEAR WESTINGHOUSE ELECTRIC CORP VETERAN AS SENIOR VICE PRESIDENT TECHNOLOGY EFFECTIVE AUG 1 HE WILL SUCCEED MARY L GOOD 61 YEARS OLD WHO HAS ANNOUNCED HER RETIREMENT IN ANTICIPATION OF BEING CONFIRMED AS UNDERSECRETARY OF COMMERCE FOR TECHNOLOGY IN THE CLINTON ADMINISTRATION DR BARPAL 53 WILL BECOME ALLIEDSIGNAL'S SENIOR TECHNOLOGY OFFICER DIRECTING RESEARCH AND TECHNOLOGY EFFORTS THROUGHOUT THE COMPANY WHICH SPECIALIZES IN TECHNOLOGY FOR AEROSPACE AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS AMONG HIS PROJECTS AT WESTINGHOUSE DR BARPAL HELPED RESOLVE A PROBLEM BETWEEN PROPULSION CONTROL SYSTEMS AND TRAIN SIGNAL CONTROL SYSTEMS FOR PUBLIC TRANSPORTATION SYSTEMS THE SOLIDSTATE CONTROL SYSTEM IS IN USE IN SUBWAYS IN SAN FRANCISCO WASHINGTON AND NEW YORK DR BARPAL ALSO HAS DONE PIONEERING WORK IN WAFER SCALE INTEGRATION AND HE HOLDS SEVERAL PATENTS DR BARPAL JOINED WESTINGHOUSE'S TRANSPORTATION DIVISION IN 1971 AND HAS BEEN VICE PRESIDENT SCIENCE AND TECHNOLOGY AT THE PITTSBURGH COMPANY SINCE 1987 9306290108 930629 CREDIT RATINGS CIGNA CORP PHILADELPHIA THE DEBT OF THIS INSURANCE COMPANY AND THE INSURANCECLAIMS PAYING RATINGS OF ITS PROPERTY AND CASUALTY OPERATIONS HAVE BEEN PUT ON REVIEW FOR POSSIBLE DOWNGRADING BY STANDARD & POOR'S CORP S&P CITED POORERTHANEXPECTED RESULTS IN CIGNA'S PROPERTY AND CASUALTY BUSINESS WHICH HAD A 748 MILLION PRETAX LOSS LAST YEAR ON OPERATIONS AND CONTINUED TO LOSE MONEY IN THE FIRST QUARTER ABOUT 12 BILLION OF LONGTERM DEBT IS AFFECTED CIGNA'S SENIOR DEBT IS RATED SINGLEAPLUS THE PROPERTY AND CASUALTY OPERATIONS' CLAIMSPAYING ABILITY RATING IS SINGLEA LOWER RATINGS MAKE IT MORE EXPENSIVE TO SELL DEBT AND MAKE IT HARDER TO SELL INSURANCE WE BELIEVE OUR PROPERTY AND CASUALTY OPERATION IS FINANCIALLY STRONG IS FISCALLY CONSERVATIVE AND HAS A STRONG PARENT SAID A CIGNA SPOKESMAN WE LOOK FORWARD TO THE REVIEW ICH CORP LOUISVILLE KY MOODY'S INVESTORS SERVICE INC DOWNGRADED 603 MILLION OF THIS INSURANCE HOLDING COMPANY'S SUBORDINATED DEBT CITING ITS SIGNIFICANT FINANCIAL LEVERAGE AND THE NEGATIVE OUTLOOK FOR THE INSURANCE OPERATIONS OF ICH SUBSIDIARIES THE DEBT WAS DOWNGRADED TO SINGLEB3 FROM SINGLEB2 MOODY'S ALSO DOWNGRADED ICH'S PREFERRED STOCK TO CAA FROM SINGLEB2 ICH SAID IT IS WORKING ON A REFINANCING PLAN THAT IT EXPECTS TO UNVEIL AND BEGIN IMPLEMENTING DURING ITS THIRD QUARTER WHICH BEGINS THURSDAY A SPOKESMAN DECLINED TO ELABORATE NEW YORK STATE ELECTRIC & GAS CORP BINGHAMTON NY STANDARD & POOR'S CORP RAISED ITS SENIOR SECURED DEBT RATING FOR THIS UTILITY CITING A NEW RATE AGREEMENT ABOUT 15 BILLION IN DEBT IS AFFECTED THE NEW THREEYEAR RATE AGREEMENT WHICH S&P EXPECTS REGULATORS TO APPROVE ALLOWS FOR A 55 INCREASE IN ELECTRIC RATES AND A 36 INCREASE IN NATURAL GAS RATES THE RATINGS AGENCY ALSO SAID CONTINUING FINANCIAL IMPROVEMENT AGGRESSIVE COST CONTROLS AND LIMITED NEWMONEY NEEDS CONTRIBUTED TO THE COMPANY'S IMPROVED RATINGS S&P RAISED SENIOR SECURED DEBT TO SINGLEAMINUS FROM TRIPLEBPLUS AND SENIOR UNSECURED DEBT AND PREFERRED STOCK TO TRIPLEBPLUS FROM TRIPLEB PACIFIC ENTERPRISES LOS ANGELES MOODY'S INVESTORS SERVICE INC RAISED ITS RATING TO BAA3 FROM BA3 ON THIS UTILITY HOLDING COMPANY'S 150 MILLION OF PREFERRED STOCK THE MOVE REFLECTS SIGNIFICANT DEBT REDUCTION WITH CASH PROCEEDS RECEIVED FROM THE SALE OF MOST OF THE COMPANY'S DIVERSIFIED ACTIVITIES AND ITS COMMON STOCK SALE THE RATINGS AGENCY SAID IN RECENT MONTHS THE COMPANY HAS RAISED 167 MILLION IN EQUITY THROUGH THE STOCK SALE REINSTATED A COMMON DIVIDEND AND RENEGOTIATED AN AGREEMENT WITH BANK LENDERS 9306290107 930629 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN OMAN MOVED TO BUILD A 4 BILLION NATURALGAS PIPELINE TO SELL AS MUCH AS TWO BILLION CUBIC FEET OF GAS A DAY TO INDIA WHERE ENERGY NEEDS ARE GROWING RAPIDLY THE SULTANATE WITH PROVEN GAS RESERVES OF 20 TRILLION CUBIC FEET DOESN'T HAVE ANY GASPURCHASE CONTRACTS IN INDIA WHICH IT ALREADY SUPPLIES WITH OIL STATEOWNED OMAN OIL CO CONTRACTED MULTINATIONAL COMPANIES TO STUDY THE TECHNICAL AND ECONOMIC FEASIBILITY OF TWO PIPELINE ROUTES TO INDIA A 930MILE ROUTE IN THE ARABIAN SEA PRESENTS BUILDING OBSTACLES SUCH AS DEPTHS TO 9900 FEET AND AN UNDERSEA MOUNTAIN RANGE A 1240MILE ALTERNATIVE ALONG THE COASTS OF IRAN AND PAKISTAN POSES POLITICAL RISKS AND RAISES FINANCIAL ISSUES SUCH AS TRANSIT FEES ONCE THE SIXMONTH FEASIBILITY STUDY IS CONCLUDED ENGINEERING AND CONSTRUCTION PHASES ARE TO LAST 27 MONTHS BULGARIA'S PRIVATIZATION AGENCY SET TERMS FOR THE SALE OF 60 OF BALKAN AIRLINES THE STATE NEWS AGENCY BTA VALUED THE CARRIER AT 80 MILLION INITIALLY 20 OF THE STOCK WILL BE OFFERED TO THE AIRLINE'S 4000 EMPLOYEES AND THE GOVERNMENT WILL RETAIN AT LEAST 40 AS SHARES ARE RESOLD FOREIGN OWNERSHIP WILL BE LIMITED TO 49 BALKAN AIRLINES WHICH SERVES 55 CITIES IN 46 COUNTRIES HAS MOSTLY SOVIETBUILT AIRCRAFT AND NINE WESTERNMADE PLANES BULGARIA SOLD A FOOD PLANT AND AN ELECTRONICS FACTORY TO FOREIGN FIRMS LAST MONTH ICELAND'S CENTRAL BANK DEVALUED THE KRONA CURRENCY 75 THE NEW RATE WAS 7146 TO THE US DOLLAR COMPARED WITH 6613 LAST FRIDAY THE DEVALUATION WAS PART OF A GOVERNMENT ECONOMIC PACKAGE TO DEAL WITH REDUCED COD STOCKS AND FALLING PRICES ON FISH EXPORTS ICELAND'S ECONOMIC MAINSTAY FISHING QUOTAS WERE CUT TO 165000 TONS NEXT YEAR FROM 220000 TONS THIS YEAR THE FISHING INDUSTRY ACCOUNTS FOR 75 OF EXPORTS AND PROVIDES JOBS FOR ABOUT 15 OF THE LABOR FORCE IN THE NORTH ATLANTIC COUNTRY WITH A POPULATION OF 257000 THE STATEOWNED VIETNAMESE FOREIGN TRADE BANK NEXT MONTH WILL START ISSUING CREDIT CARDS IN HO CHI MINH CITY VIETCOMBANK'S CARD WILL BE USED INITIALLY IN THE STATE TRADING SECTOR FOR PAYMENTS FOR MERCHANDISE AND SERVICES SIX BIG BUSINESSES INCLUDING THE TRAVEL AGENCY SAIGON TOURIST AND AN IMPORTEXPORT COMPANY HAVE AGREED TO USE THE CARD THE EASTERN & ORIENTAL EXPRESS AN ASIAN VERSION OF THE ORIENT EXPRESS LUXURY TRAIN IN EUROPE UNVEILED SERVICE LINKING SINGAPORE AND BANGKOK THAILAND A 41HOUR JOURNEY THROUGH PLANTATIONS JUNGLES AND VILLAGES AMID AN ASIAN TOURISM BOOM THE OWNERS OF THE 22CAR E&O REFURBISHED FOR 25 MILLION AND INDUSTRY OFFICIALS WERE AIMING TO ATTRACT RICH STATUSCONSCIOUS TRAVELERS A ONEWAY E&O FARE FOR A PRIVATE COMPARTMENT WITH A BATH BEDS AND GOURMET MEALS RANGES FROM 1065 TO 1690 PRESIDENTIAL SUITES WITH ADJOINING ROOMS FOR BODYGUARDS GO FOR 3490 BY CONTRAST A ONEWAY AIRLINE TICKET COSTS AS LITTLE AS 185 OUTLAYS BY FRENCH STATECONTROLLED CORPORATIONS THIS YEAR FOR PLANTS AND EQUIPMENT ARE EXPECTED TO INCREASE 11 TO 160 BILLION FRENCH FRANCS 2789 BILLION FROM 1992 AS THE GOVERNMENT TRIES TO PROP UP ECONOMIC ACTIVITY AND STEM RISING UNEMPLOYMENT GROSS DOMESTIC PRODUCT COULD CONTRACT 08 THIS YEAR PRODUCING FRANCE'S WORST RECESSION SINCE WORLD WAR II THE CAPITAL SPENDING IS AIMED AT CONSTRUCTION AND PUBLIC SERVICES SUCH AS IMPROVEMENTS IN TRANSPORTATION AND HIGHWAYS AND THE ADDITION OF A THIRD TERMINAL AT PARIS'S CHARLES DE GAULLE AIRPORT CHINA PLANS TO CONTINUE RELEASING CONTROLS ON PRICES DESPITE HIGH INFLATION NOTING FAVORABLE CONDITIONS FOR REFORMS MOST PRODUCTS ARE PLENTIFUL ENOUGH TO SATISFY DEMAND AND PREVENT PANIC BUYING GOVERNMENT ECONOMIC OFFICIALS SAID THE OPEN MARKET SETS PRICES FOR ABOUT 80 OF INDUSTRIAL AND FARM PRODUCTS PRICES HAVE INCREASED IN THE PAST DECADE AS CHINA PHASED OUT ITS SYSTEM OF USING BIG SUBSIDIES TO MAINTAIN ARTIFICIALLY LOW PRICES WHICH CONTINUES IN SECTORS SUCH AS INDUSTRIAL RAW MATERIALS DECONTROL HAS BEEN SPEEDED UP IN THE PAST TWO YEARS SPURRING INFLATION WHICH CLIMBED TO AN ANNUAL RATE OF ALMOST 17 IN MAY URBAN WORKERS' WAGES HAVE LARGELY KEPT PACE WITH THE PRICE INCREASES BUT RURAL PAY HAS TRAILED CAUSING DISCONTENT AND SPORADIC CLASHES WITH OFFICIALS CHINA POSTED A RECORD BUDGET DEFICIT FOR 1992 OF 2366 BILLION YUAN 414 BILLION OR 14 MORE THAN EXPECTED LAST YEAR'S RAPID 13 ECONOMIC GROWTH PRODUCED SOARING DEMAND FOR FUNDS SINCE 1979 CHINA HAS LOGGED DEFICITS EVERY YEAR EXCEPT 1985 CHINA'S COMMUNIST PARTY IN A CAMPAIGN TO RAISE MORAL VALUES SAID SWITCHING TO A MARKET ECONOMY SPURRED A BOOM NOT ONLY THERE BUT IN CORRUPTION THE PARTY DISCIPLINED 733000 MEMBERS AND EXPELLED 154000 FOR VARIOUS INDISCRETIONS IN THE PAST FIVE YEARS WHEN 9 MILLION JOINED BRINGING MEMBERSHIP TO 52 MILLION LONDON'S ROYAL OPERA HOUSE PLANS AN INTERNATIONAL FESTIVAL STAGING ALL 28 OF THE ITALIAN COMPOSER GUISEPPE VERDI'S OPERAS OVER SIX SUMMERS FROM 1995 THROUGH 2001 THE CENTENARY OF HIS DEATH 9306290106 930629 LAW LAWYERS ARGUE OVER IMPACT OF SURVEY THAT RANKS NATION'S TOP LAW FIRMS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL THE AMERICAN LAWYER'S ANNUAL RANKING OF THE 100 TOPGROSSING LAW FIRMS HAS LEFT ITS MARK ON THE LEGAL MARKETPLACE BUT WHETHER THAT'S GOOD OR NOT IS WIDELY DEBATED BY LAWYERS IN BIG FIRMS ACROSS THE NATION PARTNERS IN MANY BIG FIRMS CAN'T WAIT TO GET THEIR HANDS ON THE SURVEY WHICH CELEBRATES ITS EIGHTH ANNIVERSARY THIS MONTH BUT CRITICS SAY THE RANKING ONLY ENCOURAGES GREED IN THE LEGAL PROFESSION THERE IS THIS OBSESSION IF YOU WILL WITH THE NUMBERS SAYS JUNE EICHBAUM A PRINCIPAL IN THE NEW YORK OFFICE OF THE LEGAL HEADHUNTING FIRM MAJOR WILSON & AFRICA IT HAS CONTRIBUTED TO AN OVERALL DISSATISFACTION WITHIN THE PROFESSION AND EVEN ITS FANS SAY THAT THE AM LAW 100 ALONG WITH THE MONEYORIENTED ETHIC OF THE 1980S HELPED TRANSFORM THE PRACTICE OF LAW INTO A BIG BUSINESS ARMED WITH DATA ON HOW MUCH THEIR COMPETITORS MAKE ATTORNEYS NOW LEAP FROM FIRM TO FIRM WHERE PREVIOUSLY THEY WOULD HAVE LIKELY STAYED PUT FOR A LIFETIME IT HAS FROM OUR PERSPECTIVE RESULTED IN AN OPEN MARKET SAYS ROBERT J KAFIN A PARTNER AT THE NEW YORK LAW FIRM PROSKAUER ROSE GOETZ & MENDELSOHN RANKED 37TH THIS YEAR WITH 136 MILLION IN GROSS REVENUE I THINK MARKETS FUNCTION MORE EFFICIENTLY IT'S HARD TO CALL LAWYERS GOODS' BUT THERE IS A FREER EXCHANGE OF GOODS AND SERVICES WHEN IT FIRST APPEARED IN 1985 THE LIST ROCKED THE SECRETIVE PROFESSION UNTIL THEN PARTNERS HAD ONLY A VAGUE IDEA OF WHAT THEIR COUNTERPARTS IN OTHER FIRMS EARNED LAWYERS ALSO GRUMBLED AND CONTINUE TO GRUMBLE THAT THE CHARTS ARE NOT ENTIRELY ACCURATE SOME LAW FIRMS FREELY PROVIDE THEIR REVENUE AND PROFITS OTHERS REFUSE TO OFFICIALLY PARTICIPATE LEAVING REPORTERS TO PIECE TOGETHER NUMBERS FROM SOURCES INSIDE AND OUTSIDE THE FIRMS WE BELIEVE THAT A LAW FIRM'S FINANCES ARE INTERNAL TO THAT LAW FIRM SAYS EARLE YAFFA MANAGING DIRECTOR OF THE NEW YORK LAW FIRM SKADDEN ARPS SLATE MEAGHER & FLOM RANKED SECOND WITH 440 MILLION IN REVENUE STEVEN BRILL CHAIRMAN OF AMERICAN LAWYER MEDIA LP A PARTNERSHIP OWNED BY MR BRILL AND TIME WARNER INC SAID THAT THE GROSS REVENUE OF PROBABLY FIVE FIRMS OR 10 COULD BE OFF BY AS MUCH AS 5 ANOTHER TWO OR THREE LAW FIRMS HE BELIEVES PROVIDE INFLATED FIGURES BUT HE SAYS FOR THE MOST PART THE LIST IS TRUSTWORTHY IT'S MORE ACCURATE NOW AND IN FACT IT'S INCREASINGLY EASY TO DO IT SO MUCH SO HE SAYS THAT THE MAGAZINE MAY SURVEY 200 FIRMS NEXT YEAR 9306290105 930629 MARKETING & MEDIA NOTED CABLETV NICKELODEON A VIACOM INC UNIT FORMED NICKELODEON ENTERTAINMENT PRODUCTS A NEW DIVISION TO MARKET HOME VIDEO AND AUDIO PRODUCTS ITS FIRST PROJECT WILL BE A LINE OF VIDEO AND AUDIO TAPES BASED ON ORIGINAL NICKELODEON PROGRAMS AND CREATED WITH SONY CORP'S SONY WONDER DIVISION TOM ASCHEIM 30 PREVIOUSLY VICE PRESIDENT FOR NEW BUSINESS DEVELOPMENT WAS NAMED VICE PRESIDENT IN CHARGE OF THE DIVISION NICKELODEON IS A CHILDREN'S CABLETELEVISION NETWORK 9306290104 930629 BUSINESS BRIEF PACIFIC TELESIS GROUP PACTEL CORP UNIT TO BUY 51 OF SWEDEN'S NORDICTEL PACIFIC TELESIS GROUP'S PACTEL CORP UNIT SAID IT AGREED TO BUY A 51 STAKE IN SWEDEN'S NORDICTEL HOLDINGS WHICH OPERATES A CELLULAR TELEPHONE COMPANY UNDER THE NAME EUROPOLITAN SAN FRANCISCOBASED PACTEL SAID THE 153 MILLION PRICE INCLUDES THE ASSUMPTION OF CERTAIN CAPITAL CONTRIBUTIONS FOR 1993 PACTEL AGREED TO BUY 68 OF THE HOLDINGS OF EACH OF THREE SWEDISH COMPANIES VOLVO TRELLEBORG AND SPECTRAPHYSICS THAT CURRENTLY HAVE 25 STAKES IN NORDICTEL HOLDINGS AFTER THE TRANSACTION EACH OF THE THREE SWEDISH COMPANIES WILL HOLD 8 OF NORDICTEL OR A TOTAL OF 24 THE REMAINING 25 IS HELD BY VODAPHONE OF THE UK NORDICTEL WHICH BEGAN OFFERING CELLULAR TELEPHONE SERVICE LAST YEAR IS ONE OF FIVE CELLULAR COMPANIES LICENSED IN SWEDEN AND ONE OF THREE TO OPERATE A DIGITAL SYSTEM 9306290103 930629 BUSINESS BRIEF LTV CORP CONCERN ENDS BANKRUPTCY STOCK IS SCHEDULED TO TRADE LTV CORP CLEVELAND EMERGED FROM BANKRUPTCY NEARLY SEVEN YEARS AFTER IT SOUGHT CHAPTER 11 PROTECTION FROM CREDITORS THE STEELMAKER SAID THE NEW YORK STOCK EXCHANGE APPROVED TRADING OF ITS COMMON SHARES AND SERIES A WARRANTS ON A WHENISSUED BASIS STARTING TODAY LTV IS SETTLING MOST OF ITS PREBANKRUPTCY DEBT OBLIGATIONS BY ISSUING STOCK IN THE REORGANIZED COMPANY AS PART OF ITS EMERGENCE FROM BANKRUPTCY IT MADE A 787 MILLION CASH PAYMENT TO ITS PENSION FUNDS STARTING THE PROCESS OF WIPING OUT A 3 BILLION SHORTFALL LTV ALSO WILL CONTRIBUTE 100 MILLION IN EQUITY AND AS MUCH AS 700 MILLION IN CASH FROM ASSET SALES THE COMPANY WILL PAY THE REST OF ITS OBLIGATION OVER 28 YEARS AS PART OF AN AGREEMENT WITH THE GOVERNMENT'S PENSION BENEFIT GUARANTY CORP WHILE IN BANKRUPTCY LTV MOVED ITS HEADQUARTERS TO CLEVELAND FROM DALLAS LTV HAS FORECAST A LOSS FOR THIS YEAR AND NEXT IT EXPECTS TO EARN 14 MILLION IN 1995 9306290101 930629 TECHNOLOGY & HEALTH IMPROPER GIFTS CITED IN DIGITAL EQUIPMENT CONTRACTS FROM STATE ALBANY NY NEW YORK'S INSPECTOR GENERAL SAID THAT A DIGITAL EQUIPMENT CORP SALESMAN IMPROPERLY GAVE ENTERTAINMENT MEALS AND SPORTS TICKETS TO STATE OFFICIALS RESPONSIBLE FOR BUYING COMPUTERS INSPECTOR GENERAL JOSEPH SPINELLI SAID OFFICIALS IN THE STATE'S MENTAL HYGIENE AND DRUGABUSE AGENCIES SERIOUSLY COMPROMISED THEIR OBJECTIVITY IN ACCEPTING GIFTS FROM DIGITAL OF MAYNARD MASS A DIGITAL SPOKESWOMAN SAID THE SALESMAN INVOLVED WAS TERMINATED LAST YEAR THE PROBE GREW OUT OF MORE SERIOUS BIDDING IRREGULARITIES ALLEGED AGAINST A DATA GENERAL CORP SALESMAN LAST FALL RESULTING IN THE COMPUTER MAKER BEING BARRED FROM NEW BIDS ON STATE CONTRACTS FOR SIX MONTHS AND THE REMOVAL OF A 1 MILLION COMPUTER SYSTEM IN THE LATEST CASE 15 STATE OFFICIALS ACCEPTED 13000 OF ENTERTAINMENT EXPENSES BETWEEN 1988 AND 1992 FROM DIGITAL WITH A LESSER AMOUNT PAID BY ORACLE CORP A SOFTWARE MAKER IN REDWOOD SHORES CALIF THE OFFICIALS INVOLVED RECOMMENDED OR APPROVED MORE THAN 10 MILLION OF COMPUTERRELATED PURCHASES FROM DIGITAL AND MORE THAN 1 MILLION FROM ORACLE MR SPINELLI SAID THE ACCEPTANCE OF ENTERTAINMENT IN THIS CASE WAS SO EXTENSIVE THAT ONE MUST CONCLUDE THAT THE OBJECTIVITY OF THESE INDIVIDUALS IN MAKING PURCHASING DECISIONS WAS SERIOUSLY COMPROMISED MR SPINELLI SAID 9306290100 930629 TECHNOLOGY BRIEF CALGENE INC COMPANY SAYS FDA REVIEW OF TOMATOES TO END SOON CALGENE INC SAID THE US FOOD AND DRUG ADMINISTRATION AGREED TO SUBJECT THE COMPANY'S USE OF GENETICALLY ALTERED MATERIAL IN TOMATOES AND SEVERAL OTHER PRODUCTS TO A REVIEW PROCESS FOR FOOD ADDITIVES CALGENE'S FLAVR SAVR TOMATOES HAVE BEEN UNDER FDA REVIEW FOR OVER TWO YEARS PREVIOUSLY THE BIOTECHNOLOGY COMPANY BASED IN DAVIS CALIF SAID IT EXPECTED APPROVAL LAST SPRING THE LATEST NOTIFICATION INDICATES TO US THAT THEIR REVIEW IS NEARING COMPLETION THE COMPANY SAID IN OVERTHECOUNTER TRADING YESTERDAY CALGENE SHARES WERE QUOTED AT 13875 UP 125 THE TOMATO WHICH CALGENE NOW EXPECTS TO BEGIN SELLING THIS FALL IS GENETICALLY ALTERED TO SOFTEN MORE SLOWLY THAN OTHER TOMATOES 9306290099 930629 BUSINESS BRIEF DOFASCO INC EARLYRETIREMENT PLANS AIM TO CUT WORK FORCE BY 1400 DOFASCO INC HAMILTON ONTARIO SAID IT HOPES TO CUT ITS WORK FORCE OF 8200 EMPLOYEES BY 1400 THROUGH TWO SEVERANCE OFFERS THE STEELMAKER HAS SAID IT HOPES TO REDUCE ITS WORK FORCE TO 6500 EMPLOYEES BY THE END OF 1994 A SPOKESMAN SAID THE COSTS OF THE NEW PROGRAMS HAVE ALREADY BEEN FULLY FUNDED THROUGH PENSION FUND SURPLUSES OR THROUGH PROVISIONS TAKEN AGAINST 1992 EARNINGS HE SAID NO FURTHER CHARGES OR PROVISIONS WOULD BE NECESSARY AN EARLYRETIREMENT PROGRAM WILL OFFER ENHANCED PENSION BENEFITS AND CONTINUED INSURANCE COVERAGE TO EMPLOYEES WHO ARE EITHER 55 YEARS OLD OR WHOSE AGE AND YEARS OF SERVICE TOTAL 75 OR MORE A SECOND PROGRAM WILL BE OFFERED TO EMPLOYEES BETWEEN THE AGES OF 50 AND 54 WITH ESSENTIALLY THE SAME BENEFITS EMPLOYEES HAVE UNTIL SEPT 30 TO MAKE THEIR DECISION 9306290098 930629 NORTHERN TELECOM SHARES TUMBLE 22 ON FORECAST OF LOSS NEW YORK NORTHERN TELECOM LTD SHARES PLUNGED 22 AS INVESTORS REVIEWED FRIDAY'S ANNOUNCEMENT THAT THE TELECOMMUNICATIONS EQUIPMENT MAKER WOULD REPORT A SECONDQUARTER LOSS DUE TO RECESSIONARY AND PRICING PRESSURES NORTHERN TELECOM CLOSED AT 28875 DOWN 8125 ON VOLUME OF 22 MILLION SHARES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE MOODY'S INVESTORS SERVICE INC SAID IT IS REVIEWING THE DOUBLEA3 SENIOR DEBT RATINGS OF TORONTOBASED NORTHERN TELECOM AND ITS NORTHERN TELECOM FINANCE CORP UNIT FOR A POSSIBLE DOWNGRADE IN VIEW OF THE REDUCED DEMAND FOR LARGE SWITCHING SYSTEMS NORTHERN TELECOM IS MAJORITYOWNED BY BCE INC AS RECENTLY AS JANUARY THE COMPANY'S THENCHAIRMAN AND CHIEF EXECUTIVE PAUL STERN HAD EXPRESSED CONFIDENCE THAT 1993 WOULD BE A RECORD YEAR FOR THE COMPANY BUT WEAK REVENUE GROWTH IN US AND NORTH AMERICAN SALES OF TELEPHONE SWITCHING EQUIPMENT WHICH REPRESENTS 50 OF THE COMPANY'S BUSINESS WILL SIGNIFICANTLY LOWER 1993 EARNINGS BELOW 1992 LEVELS THE COMPANY SAID SEVERAL BROKERAGE HOUSE ANALYSTS SLASHED THEIR EARNINGS ESTIMATES FOR THE COMPANY YESTERDAY NORTHERN TELECOM HAS OCCASIONALLY HAD A WEAK QUARTER IN PREVIOUS YEARS BUT NEVER TWO IN A ROW SAID ROBERT WILKES AN ANALYST AT BROWN BROTHERS HARRIMAN IN THE FIRST QUARTER EARNINGS PLUNGED 27 DUE TO LOWER PROFIT MARGINS AND HIGHER RESEARCH AND DEVELOPMENT OUTLAYS INDUSTRY COMPETITION IS SO KEEN THAT LARGE OUTLAYS FOR RESEARCH MUST CONTINUE SAID PAINEWEBBER ANALYST JEFFREY HINES SHORTTERM INVESTORS SHOULD NOT EXPECT TO SEE A TURNAROUND GIVEN THE CURRENT OPERATING ENVIRONMENT ANY TIME THIS YEAR HE SAID COMPETITORS ARE STRONG IN SWITCHES AND CELLULAR EQUIPMENT AND ALMOST EVERY DAY DURING THE LAST FEW WEEKS YOU'VE SEEN THEM ANNOUNCING NEW ORDERS HE SAID 9306290097 930629 INTERNATIONAL MENEM SEEKS TITLE OF MR INDISPENSABLE' ARGENTINE DEFIES THE LAW CRITICS WITH REELECTION BID BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL BUENOS AIRES MENEM 1995 READ THE WALL POSTERS PLASTERED ALL OVER ARGENTINA'S CAPITAL SIMILAR MESSAGES ARE EMBLAZONED ON TSHIRTS BUMPER STICKERS EVEN WATCH FACES IT LOOKS AS IF ARGENTINE PRESIDENT CARLOS MENEM HAS LAUNCHED HIS REELECTION CAMPAIGN THERE'S JUST ONE PROBLEM HE ISN'T ALLOWED TO RUN FOR REELECTION BUT EAGER TO PROLONG HIS STAY IN THE CASA ROSADA INTO THE NEXT CENTURY MR MENEM AND HIS SUPPORTERS ARE PULLING OUT ALL STOPS TO GET ARGENTINA'S CONSTITUTION REVISED TO ALLOW PRESIDENTS TO SERVE CONSECUTIVE TERMS A BILL HAS BEEN SUBMITTED TO CONGRESS AND THERE'S TALK OF A PLEBISCITE ON THE ISSUE SHORTLY AFTER THE OCT 3 ELECTIONS IN WHICH HALF THE SEATS IN THE CHAMBER OF DEPUTIES ARE UP FOR GRABS I'LL BE HERE UNTIL 2001 MR MENEM TOLD THE DAILY PAGINA 12 RECENTLY AND IN 2001 WE'LL SEE TO THE 62YEAROLD MR MENEM WHO MEETS WITH PRESIDENT CLINTON IN WASHINGTON TODAY AND TO HIS BACKERS A NEW SIXYEAR TERM WOULD CONSOLIDATE THE FREEMARKET REFORMS THAT HAVE PUT ARGENTINA IN THE FOREFRONT OF LATIN AMERICA'S ECONOMIC REVIVAL IT'S VERY IMPORTANT FOR THE CONTINUITY OF THIS SOCIAL AND ECONOMIC MODEL FOREIGN MINISTER GUIDO DI TELLA SAID RECENTLY BUT BEYOND MR MENEM'S ATTEMPTS TO PORTRAY HIMSELF AS INDISPENSABLE TO ARGENTINA'S STABILITY HIS CRITICS SEE A POWERHUNGRY DICTATORIAL STREAK THAT REMINDS THEM OF OLDSTYLE LATIN AMERICAN CAUDILLOS THIS THEORY OF PROVIDENTIAL MEN GAVE US PERON SAYS ECONOMIST ADALBERTO RODRIGUEZ GIAVARINI ALLUDING TO THE STRONGMAN JUAN DOMINGO PERON WHOSE DYNASTIC AND STATIST POLICIES CONTRIBUTED TO ARGENTINA'S LONG DECLINE THIS IS A MONARCHIC ARGUMENT NOT A DEMOCRATIC ONE THERE ARE NO INDISPENSABLE MEN THERE ARE INDISPENSABLE SYSTEMS SOME ARGUE THAT WHAT POLITICAL ANALYST ROSENDO FRAGA CALLS MR MENEM'S REELECTION OBSESSION IS DETRIMENTAL TO ECONOMIC STABILITY BECAUSE IT RAISES THE POSSIBILITY OF ECONOMIC CONCESSIONS FOR POLITICAL GAINS MANY SAY HE'D BE BETTER TO PICK HIS SUCCESSOR AND ENSURE THAT ECONOMY MINISTER DOMINGO CAVALLO STAYS ON THIS UNEASINESS OVER MR MENEM'S INTENTIONS COMES THROUGH IN OPINION POLLS A POLL LAST MONTH BY THE BUENOS AIRES DAILY CLARIN SHOWED THAT 67 FAVOR CONSTITUTIONAL REFORM AND 64 FAVOR THE POSSIBILITY OF REELECTION AS SOON AS THE RESULTS CAME OUT MR MENEM'S PERONIST PARTY PLASTERED THE CITY WITH POSTERS SAYING THE PEOPLE HAVE ALREADY DECIDED BUT THE POSTERS CONVENIENTLY LEFT OUT THE ANSWER TO A THIRD QUESTION IF MR MENEM STOOD FOR REELECTION 529 SAID THEY WOULDN'T VOTE FOR HIM AGAINST 308 WHO WOULD THIS RESULT REFLECTS AMBIVALENCE ABOUT MR MENEM HIMSELF HIS IMPRESSIVE ECONOMIC RESULTS AND HIS SHARPLY PROWESTERN FOREIGN POLICY HAVE ALLOWED HIM TO CARVE HIMSELF AN IMAGE OF A STATESMAN ASPIRING TO SOUTH AMERICAN LEADERSHIP MR MENEM HAS ADROITLY USED HIS PERONIST CREDENTIALS TO REVERSE ALMOST EVERYTHING GEN PERON DID AND TO CARRY OUT AN ECONOMIC TURNAROUND THAT BANKERS TRUST DESCRIBED IN A RESEARCH REPORT AS ONE OF THE MOST DRAMATIC IN MODERN HISTORY BY PRIVATIZING ALMOST ALL OF STATE INDUSTRY INCLUDING OIL GIANT YPF SA WHICH WAS FLOATED YESTERDAY BY OPENING THE ECONOMY TO FOREIGN COMPETITION AND BY GIVING MR CAVALLO POLITICAL BACKING FOR A TOUGH STABILIZATION PLAN MR MENEM HAS CUT INFLATION TO 175 LAST YEAR FROM A WHOPPING 5000 IN 1989 WHEN HE CAME TO POWER THE ECONOMY GREW 9 IN 1992 AND ARGENTINA ALSO REACHED A DEAL OVER ITS 31 BILLION FOREIGNBANK DEBT BUT ALONGSIDE THIS STATESMAN'S IMAGE ON DISPLAY IN WASHINGTON TODAY THE FLASHY MR MENEM ALSO HAS THE IMAGE OF A FRIVOLOUS POWERLOVING AND SOMETIMES VINDICTIVE MAN THAT TURNS OFF MANY ARGENTINES THE INTELLECTUAL ELITE SAY HE'S A JOKE SAYS ECONOMIST PEDRO LACOSTE WHEN TOP MODEL CLAUDIA SCHIFFER VISITED HERE RECENTLY MR MENEM SAW HER NOT ONCE BUT TWICE MR MENEM HAD SEVERAL HIGHLY PUBLIC SPATS WITH HIS ESTRANGED WIFE ZULEMA HE AGREED ONLY VERY RELUCTANTLY TO GIVE UP A GLEAMING RED FERRARI THAT A BUSINESSMAN GAVE HIM HE HAS ACQUIRED A 66 MILLION PRESIDENTIAL JET THAT INCLUDES A BARBER SHOP HE SPENDS MANY HOURS ON THE TENNIS COURT SOCCER FIELD AND GOLF COURSE HE HAD INSTALLED AT HIS RESIDENCE MR MENEM'S VINDICTIVE SIDE CAME OUT IN THE PAST FEW DAYS IN A MAJOR SQUABBLE WITH THE DAILY CLARIN UPSET THAT THE PAPER REPORTED THE HIGHLY CRITICAL VIEWS OF A BISHOP MR MENEM THREATENED RETALIATORY MEASURES AGAINST THE PRESS INCLUDING AN ANTITRUST LAW THAT WOULD CHIEFLY AFFECT CLARIN THIS GAVE MANY THE IMPRESSION THAT MR MENEM WAS SEEKING TO MUZZLE THE PRESS TO BOLSTER HIS REELECTION CAMPAIGNA CHARGE ON WHICH HE IS NOW TRYING TO BACKPEDAL MOREOVER THE GOVERNMENT HAS BEEN DOGGED BY CORRUPTION AND MONEYLAUNDERING SCANDALS THAT HAVE INVOLVED TOP MINISTERS AND SOME OF MR MENEM'S PRINCIPAL AIDES THIS HAS BEEN AGGRAVATED BY THE FACT THAT WHILE THE OFFICIALS HAVE LOST THEIR JOBS THEY HAVEN'T BEEN PUNISHED SO FAR MR MENEM'S CHARISMA PERSONAL TOUCH AND ECONOMIC SUCCESS HAVE ALLOWED HIM TO STAY UNTAINTED STILL PREDICTS MR FRAGA THE POLITICAL ANALYST THE GOVERNMENT WILL WIN THE OCTOBER ELECTIONS BECAUSE OF THE ECONOMY BUT MENEM WON'T SUCCEED ON HIS REELECTION BID BECAUSE OF HIS POLITICAL DEFECTS PEOPLE WANT THIS STABILITY TO CONTINUE BUT WITHOUT UNLIMITED POWER FOR MENEM 9306290096 930629 ABREAST OF THE MARKET INDUSTRIALS ADVANCE 3931 POINTS ON RATE DROPS ECONOMIC HOPES BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A FURTHER SLIDE IN MARKET INTEREST RATES AND SOME RENEWED OPTIMISM ON THE ECONOMY SENT STOCK PRICES SHARPLY HIGHER FOR A THIRD STRAIGHT SESSION STOCKS TOOK THEIR DIRECTION FROM THE RALLYING BOND MARKET A GAIN OF ALMOST 1/2 POINT IN THE TREASURY'S 30YEAR BOND LEFT ITS YIELD AT 667 ITS LOWEST SINCE REGULAR AUCTIONS OF THE SECURITY BEGAN IN 1977 SHARES OF COMPANIES WHOSE BUSINESSES ARE SENSITIVE TO INTEREST RATES INCLUDING BANKS AND SECURITIES BROKERAGES GAINED THE MOST BUT ANALYSTS SAID SOME OF THE ECONOMIC WORRIES THAT HAVE PLAGUED THE MARKET ALSO BEGAN TO EASE TOUCHING OFF BIG GAINS IN MANY CYCLICAL STOCKS TOO THE DOW JONES INDUSTRIAL AVERAGE SURGED 3931 OR 113 TO 353020 BIG GAINERS INCLUDED ALLIEDSIGNAL WHICH ROSE 3 1/8 TO 69 1/8 CATERPILLAR WHICH ADVANCED 2 5/8 TO 75 1/4 AND JP MORGAN UP 1 1/2 TO 67 3/8 THE DOW JONES TRANSPORTATION AVERAGE ALSO SHOWED INVESTORS' APPETITES FOR ECONOMICALLY SENSITIVE STOCKS IT SURGED 2353 OR 156 TO 153311 CARRIED MOSTLY BY TRUCKING AND RAILROAD STOCKS BUT THE RALLY EXTENDED WELL BEYOND THE INTEREST RATE SENSITIVE AND CYCLICAL ISSUES ADVANCING BIG BOARD ISSUES SWAMPED DECLINERS 1375 TO 586 VOLUME WAS 240434910 UP FROM FRIDAY'S 205828460 THE STANDARD & POOR'S 500STOCK INDEX JUMPED 425 OR 095 TO 45185 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 232 OR 094 TO 24952 AND THE DOW JONES EQUITY MARKET INDEX INCREASED 444 OR 105 TO 42887 ALTHOUGH THERE WERE NO POSITIVE READINGS ON EARNINGS OR THE ECONOMY YESTERDAY BRADLEY TURNER A MARKET STRATEGIST AT MCDONALD & CO SECURITIES SAID INVESTORS WERE BETTING THAT THE CONTINUED DROP IN INTEREST RATES WILL BUOY THE ECONOMY IN THE COMING MONTHS WITH LOW INTEREST RATES PEOPLE ARE GOING TO BUILD MORE HOUSES AND CORPORATE AMERICA IS GOING TO BE MORE WILLING TO EXPAND HE SAID ANALYSTS SAID PRESIDENT CLINTON'S RECENT SUCCESS IN PUSHING HIS ECONOMIC PROGRAM IN CONGRESS HAS ALSO FED THE ENTHUSIASM FOR STOCKS AND BONDS OVER RECENT DAYS CLINTON SEEMS TO BE STEPPING OUT OF HIS MIRE SAID PETER CANELO MARKET STRATEGIST AT NATWEST SECURITIES WHILE THE PRESIDENT'S PACKAGE IS STILL SUBJECT TO CHANGE AS THE HOUSE AND SENATE RECONCILE DIFFERENCES IN THEIR VERSIONS OF THE PLAN MR CANELO SAID JUST HAVING THE THING ON THE TABLE IS GOING TO RELIEVE SOME OF THE UNCERTAINTIES NORTHERN TELECOM TUMBLED 8 1/8 TO 28 7/8 THE CANADIAN COMMUNICATIONS COMPANY LATE FRIDAY SAID IT EXPECTS TO POST A LOSS FOR THE SECOND QUARTER AND A SIGNIFICANT DROP IN EARNINGS FOR ALL OF 1993 COMPARED WITH YEARAGO LEVELS BIG GAINERS IN THE BANK GROUP INCLUDED FIRST INTERSTATE BANCORP WHICH JUMPED 3 1/4 TO 64 WELLS FARGO WHICH ADVANCED 3 3/4 TO 110 7/8 BANK OF NEW YORK WHICH ADDED 1 7/8 TO 60 3/4 AND CHEMICAL BANKING WHICH CLIMBED 1 TO 41 7/8 CITICORP THE US'S LARGEST BANK ADDED 5/8 TO 30 SHARES OF DISCOUNT BROKERAGE CONCERNS WERE PARTICULARLY STRONG AMONG SECURITIES FIRMS CHARLES SCHWAB SURGED 2 3/8 TO 28 1/2 QUICK & REILLY INCREASED 1 3/4 TO 29 1/2 AND WATERHOUSE INVESTOR SERVICES JUMPED 3 TO 32 5/8 QUICK & REILLY AND WATERHOUSE BOTH POSTED SOLID EARNINGS LAST WEEK THE BUYING IN TRUCKING AND RAILROAD STOCKS WAS FUELED BY POSITIVE COMMENTS ABOUT THOSE GROUPS FROM MERRILL LYNCH & CO ANALYSTS CSX ADDED 2 1/2 TO 71 1/4 AMERICAN PRESIDENT INCREASED 1 1/8 TO 56 1/8 NORFOLK SOUTHERN GAINED 1 TO 64 3/4 AND RYDER SYSTEM WAS UP 1 1/8 TO 31 3/8 DRUG STOCKS THOUGH MISSED OUT ON THE RALLY ELAINE M GARZARELLI DIRECTOR OF SECTOR ANALYSIS AT LEHMAN BROTHERS DOWNGRADED THE GROUP TO NEUTRAL FROM ATTRACTIVE EARNINGS MOMENTUM IN THE STANDARD & POOR'S DRUG INDUSTRY GROUP SHE SAID MAY LAG BEHIND THAT OF COMPANIES CONSTITUTING THE S&P 500 STOCK INDEX MERCK & CO LOST 5/8 TO 35 7/8 PFIZER DROPPED 3/4 TO 68 7/8 SCHERINGPLOUGH EASED 1/4 TO 70 1/8 AND ELI LILLY & CO SHED 1 7/8 TO 49 3/8 AFTER THE MARKET CLOSED AN INITIAL PUBLIC OFFERING FOR YACIMIENTOS PETROLIFEROS FISCALES OR YPF ARGENTINA'S STATEOWNED OIL COMPANY WAS PRICED AT 19 A SHARE THE ISSUE ONE OF THE LARGEST NEW ISSUES EVER WAS INCREASED IN SIZE TO 140 MILLION SHARES FROM A PLANNED 110 MILLION SHARES OF THE BIG THREE US AUTO MAKERS JUMPED ON HEAVY VOLUME GENERAL MOTORS ADDED 1 1/4 TO 44 3/8 ON 28 MILLION SHARES CHRYSLER GAINED 1 3/8 TO 46 7/8 ON 27 MILLION SHARES AND FORD MOTOR ADVANCED 3/4 TO 51 5/8 ON 14 MILLION SHARES ENHANCE FINANCIAL SERVICES LOST 2 1/4 TO 20 THE NEW YORK COMPANY WHICH REINSURES FINANCIAL GUARANTIES ON MUNICIPAL AND ASSETBACKED DEBT SAID ITS SECONDQUARTER EARNINGS WILL BE REDUCED BY 46 CENTS A SHARE BY HIGHERTHANEXPECTED CLAIMS THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 229 OR 053 TO 43286 THERE WERE 306 ADVANCERS AND 259 DECLINERS 9306290094 930629 TECHNOLOGY BRIEF GOVERNMENT TECHNOLOGY SERVICES IBM TO SUPPLY COMPUTERS FOR GOVERNMENT CONTRACT GOVERNMENT TECHNOLOGY SERVICES INC SAID IT WILL MAKE AVAILABLE IBMBUILT PRIVATELABEL COMPUTERS TO THE AIR FORCE AS PART OF THE GOVERNMENT'S 700 MILLION DESKTOP IV PERSONAL COMPUTER CONTRACT INTERNATIONAL BUSINESS MACHINES CORP WILL MAKE TWO TYPES OF 486 MICROCOMPUTERS FOR GOVERNMENT TECHNOLOGY SERVICES AT THE SAME RESEARCH TRIANGLE PARK FACILITY IN NORTH CAROLINA WHERE IT MAKES ITS BRANDNAME MICROPROCESSORS GOVERNMENT TECHNOLOGY SERVICES OF CHANTILLY VA RESELLS COMPUTER PRODUCTS TO THE GOVERNMENT DESKTOP IV COVERS 300000 DESKTOP PERSONAL COMPUTERS THE CONTRACT IS SHARED BETWEEN GOVERNMENT TECHNOLOGY SERVICES AND ZENITH DATA SYSTEMS UNDER THE TERMS OF THE PROCUREMENT THE TWO COMPANIES WILL COMPETE FOR CONTRACTS AS THEY COME UP FROM GOVERNMENT DEPARTMENTS SOME ANALYSTS SAID THAT THE PRIVATELABEL IBM COMPUTERS WILL GIVE GOVERNMENT TECHNOLOGY SERVICES AN EDGE IN COMPETING WITH ZENITH A ZENITH SPOKESMAN SAID THE UNIT OF FRANCE'S STATEOWNED CIE DES MACHINES BULL STILL EXPECTS TO WIN MORE THAN HALF OF THE BUSINESS 9306290093 930629 BUSINESS WORLD DEREGULATION DELIVERS THE GOODS BY TIM W FERGUSON ALONG THE NORTHEASTERN CORRIDOR MOURNFUL STRAINS WERE HEARD THIS MONTH FOR ANOTHER MOTOR FREIGHT LINE THE ST JOHNSBURY TRUCKING CO MOSTLY SMALLER CARRIERS HAVE DIED BY THE THOUSANDS IN RECENT YEARS BUT ST JOHNSBURY WAS A BIG FISH BELLY UP MORE THAN 4000 EMPLOYEES IDLED AT ONCE MOST OF THEM TEAMSTERS AT 17 AN HOUR THE COMPANY SUFFERED FROM POOR CHOICES AND BAD BREAKS IN AN INDUSTRY THAT NOW HAS LITTLE MARGIN FOR ERROR AND THAT IS THE BIGGER STORY HERE TRUCKING INDEED THE WHOLE INTERSTATE FREIGHT INDUSTRY HAS BEEN MADE RAZOR SHARP BY FEDERAL DEREGULATION THAT KICKED IN BARELY A DECADE AGO EXTRAORDINARY GAINS FOR SHIPPERS AND THEREFORE CONSUMERS HAVE RESULTED NOT ONLY IN PRICE BUT PERFORMANCE ONE ACADEMIC HAS CALLED THIS INDUSTRY THE UNSUNG HEROES OF THE COMPETITIVENESS AGE THE INVISIBLE FORCE THAT HAS MADE MORE GOODS AVAILABLE FASTER AND CHEAPER THROUGHOUT THE ECONOMY IN THE SAME WAY THAT THE X FACTOR OF THE SILICON REVOLUTION HAS THROWN OFF MANY AN ECONOMETRIC MODEL THE FREIGHT FREEFORALL HAS KEPT OVERALL PRICE RISES SURPRISINGLY IN CHECK ONE THING IT'S DONE IS CHANGE THE INVENTORY CYCLE WHICH ONCE WAS A PREDICTOR OF ECONOMIC TRENDS AS LATE AS 1981 RISING INVENTORIES WERE A STANDARD SIGNAL OF RECESSION NOW THEY DIMINISH THROUGH BOOM AND BUST THE JUST IN TIME MANAGEMENT FASHION IS ONLY POSSIBLE WHEN PLANTS OR RETAILERS CAN RELY ON DELIVERY WITHIN 24 OR 48 OR MAYBE 72 HOURS TODAY MOST BUSINESSES CAN DO THAT AND THE SAVING FROM NOT HAVING TO STOCKPILE IN OTHER WORDS NOT TYING UP CAPITAL IN UNPRODUCTIVE ASSETS IS SIGNIFICANT THE FREIGHT BUSINESS IS UNGLAMOROUS AND EXCEPT FOR THE PARCEL/LETTER WARS AMONG THE OVERNIGHT CARRIERS ALL BUT UNSEEN BY THE PUBLIC THE DREADED SEMI ON THE HIGHWAY IS IMPOSSIBLE TO OVERLOOK BUT FEW GRASP ITS ECONOMIC IMPORTANCE ONE MAN WHO DOES APPRECIATE HOW THIS ALL FITS TOGETHER IS ROBERT DELANEY OF CASS LOGISTICS A MANAGEMENT SOFTWARE FIRM IN ST LOUIS MR DELANEY IS A NUMBERS GUY AND HIS SHOW DEREGULATION IS A BOON INCLUDE RAILROAD LIBERALIZATION WHICH YOU MUST BECAUSE INTERMODAL SHIPPING IS NOW THE RULE AND THE CUMULATIVE PRODUCTIVITY DIVIDEND IS MAYBE 100 BILLION AND RISING SOME ECONOMISTS WHO DISPUTE THE PURE PRICE IMPACT EVEN THOUGH FREIGHT RATES HAVE FALLEN IN REAL TERMS FOR MOST CUSTOMERSNEVERTHELESS ACKNOWLEDGE THAT PRODUCTION CAN NOW BE MORE RATIONALLY SQUARED WITH MARKETS DISTRIBUTION COSTS AS A SHARE OF GNP CASS REPORTS HAVE DROPPED 33 SINCE 1981 AFTER THE LANDMARK MOTOR CARRIER ACT WAS PASSED SEE THE CHART WHILE THE TRUCKING INDUSTRY HAS BEEN CHAOTIC WITH NEW ENTRANTS AND BLURRING OF SECTORS LOGISTICS PROS FIGURED OUT A SMARTER WAY TO USE RESOURCES THAN REGULATORS COULD MILES CAME OUT OF THE SYSTEM MR DELANEY SAYS TRAILERS THAT USED TO RIDE EMPTY ON THE BACKHAUL NOW ARE PERMITTED TO MAKE PICKUPS WHICH CUTS THE TOTAL NUMBER OF RUNS AS DOES THE ELIMINATION OF MIDDLEMEN BY RETAILERS USING NEWFOUND DELIVERY FREEDOM AND TECHNOLOGY MR DELANEY NOTES THAT BIGRIG SALES DROPPED BY NEARLY A THIRD IN THE EARLY 1980S BEFORE REBOUNDING A BIT SINCE FEWER TRUCKS ARE ON THE ROAD NOW THOUGH THE ECONOMY IS OBVIOUSLY MUCH LARGER THIS HAS THE SIDE BENEFIT OF LESS DIESEL POLLUTION ASSUMING THE RIGS ARE WELL MAINTAINED WHICH SOME SAY THEY AREN'T REDUCTION IN NEEDLESS TRAFFIC IS SEEN IN ANOTHER DELANEY MEASURE HE FIGURES THAT TON MILES AN INDUSTRY STANDARD GREW AT TWICE THE RATE OF GNP PRIOR TO DEREGULATION NOW THE RATIO IS PERHAPS 131 IT BECOMES 11 WHERE DECONTROL IS TOTAL AS IN BRITAIN AND THE NETHERLANDS IN THE US 42 STATES STILL MESS WITH INTRASTATE SHIPMENTS AND THIS HOLDS BACK ADVANCES BUT THIS NATION ALONG WITH CANADA WHERE TRUCKING LIBERALIZATION WASHED NORTH IN 1987 HAS AN EDGE OVER HIDEBOUND GERMANY FOR INSTANCE WHICH IS STUCK IN THE 21 MILES/GNP RUT INTRASTATE REGULATION IS THE BIG POLITICAL BATTLEGROUND LEFT AND IT IS FIERCE THE INEFFICIENCY COST IS PERHAPS 8 BILLION A YEAR OPPOSING CHANGE ARE THE TEAMSTERS A RELATIVELY FEW CARRIERS THAT STILL ENJOY A PROFITABLE ROOST AND THE NATIONAL ASSOCIATION OF REGULATED UTILITY COMMISSIONERS AN EFFECTIVE WASHINGTONBASED LOBBY FIGHTING FREE ENTERPRISE FOR THE TEAMSTERS AS A TRANSPORTATION UNION THE FIGHT AGAINST DEREGULATION IS A WATERLOO ITS TRUCKER MEMBERSHIP IS DOWN TO ABOUT 5 OF TOTAL COMMERCIAL DRIVERS IN THE US AFTER A LOSS OF AT LEAST 100000 IN THE 1980S THE TEAMSTERS' CONTRACT WITH BIG COMPANIES IN THE SECTOR SERVING MOST SMALLTOMIDSIZED BUSINESSES YELLOW FREIGHT ROADWAY SERVICES AND CONSOLIDATED FREIGHTWAYS ARE THE TOP THREE COMES UP FOR RENEWAL NEXT YEAR CONCESSIONS GRANTED TO IMPERILED CARRIERS SO FAR INDICATE A TOUGH SQUEEZE BECAUSE THE REMAINING MAJORS ARE THEMSELVES BARELY MAKING MONEY AN EARLIER TEAMSTER TEST COMES NEXT MONTH AS NEGOTIATIONS CONCLUDE WITH UNITED PARCEL SERVICE THE BIGGEST CONTRACT THE UNION HAS THE COMPANY HAS BEEN RECONDITIONED INTO A PROFICIENT COMPUTERIZED HANDLER UNDER TEAMSTER AEGIS BUT TENSIONS REMAIN HIGH UPS BECOMES MORE OF A BENCHMARK FOR THE TRUCKING INDUSTRY AS IT EXPANDS ALONG WITH OTHER LETTER/PARCEL SERVICES INTO PALLETLOAD FREIGHT THAT'S PART OF THE JUMBLING OF COMPETITION THAT PRIOR TO DEREGULATION WAS NEATLY SEPARATED NOW NOT ONLY ARE THE OVERNIGHTMAIL COMPANIES TAKING ON BULK LOADS BUT THE CONTRACT LONGHAUL TRUCKERS NEARLY ALL NONUNION HAVE MOVED DOWN INTO THE PARTIALLOAD TEAMSTER SECTOR AT THE SAME TIME THE OLDLINE NATIONAL COMPANIES SUCH AS CONSOLIDATED AND YELLOW ARE TAKING ON NONUNION SUBSIDIARIES TO BETTER COMPETE REGIONALLY FOR WANT IT NOW BUSINESS CUSTOMERS A UNION LIKE THE LINEARMINDED BUSINESSES IT IS SUITED TO DEALING WITH WILL ALWAYS PREFER A STABLE ENVIRONMENT IN WHICH MANAGEMENT AND LABOR JOCKEY TO CUT UP THE CONSUMER DEREGULATION IN ANY INDUSTRY UPENDS THIS RELATIONSHIP IN THE TRANSITION PROCESS PAIN WILL BE FELT BY EMPLOYEES WHO GAVE THEIR ALL TO THE COMPANY AND ARE IN A SENSE BLAMELESS FOR THEIR FATE AS WELL AS BY SELECT CUSTOMERS WHO WERE COMFORTABLE WITH THE PREVIOUS SETUP CERTAINLY ALL OF THAT HAS HAPPENED AND WILL CONTINUE TO HAPPEN ESPECIALLY IF THE INTRASTATE BARRIERS COME DOWN IN FREIGHT BUT FOR THE US AS A WHOLE THIS UPHEAVAL HAS PROVIDED A GIANT CUSHION FOR CONVALESCING FROM THE STAGFLATIONARY 1970S IN ADDRESSING A RECENT CATO INSTITUTE AUDIENCE MILTON FRIEDMAN REFLECTED THAT CONTRARY TO THE ADAGE FREQUENTLY ATTRIBUTED TO HIM THERE IS SUCH A THING AS A FREE LUNCH THE WINDFALL COMES FROM THE ABANDONMENT OF CONTROLS AND OTHER ECONOMIC DISTORTIONS BY THE STATE JUST TRACK THE TRENDS IN TRUCKING 9306290092 930629 BUSINESS BRIEF PROXIMA CORP FIRM SEES OPERATING RESULTS NEAR BREAKEVEN FOR QUARTER PROXIMA CORP SAID IT EXPECTS TO REPORT NEAR BREAKEVEN OPERATING RESULTS FOR THE FIRST QUARTER ENDING TOMORROW ON REVENUE OF 112 MILLION A YEAR EARLIER THE SAN DIEGO COMPANY WHICH MAKES LIQUID CRYSTAL DISPLAY PROJECTION PRODUCTS HAD NET INCOME OF 12 MILLION OR 25 CENTS A SHARE ON REVENUE OF 127 MILLION PROXIMA LOST 2 MILLION IN REVENUE LATE IN THE QUARTER BECAUSE OF PRODUCTION DELAYS AND SALES OF POWER PRODUCTS WHICH PROTECT PERSONAL COMPUTERS FROM ELECTRICALPOWER PROBLEMS WERE ABOUT 1 MILLION BELOW EXPECTATIONS SAID KENNETH E OLSON CHAIRMAN AND CHIEF EXECUTIVE MR OLSON ADDED WE DO NOT BELIEVE THAT THE RESULTS WE ANTICIPATE FOR THE FIRST QUARTER ARE INDICATIVE OF PROXIMA'S PERFORMANCE FOR THE BALANCE OF THE YEAR THE COMPANY'S SHARES WERE UNCHANGED AT 8 YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING 9306290091 930629 MONEY MANAGER PLEADS GUILTY TO THEFT CHARGE NEW YORK A FORMER BROKER AT SMITH BARNEY HARRIS UPHAM & CO WHO LEFT THE PRIMERICA CORP UNIT TO SET UP HIS OWN MONEY MANAGEMENT COMPANY PLEADED GUILTY TO STEALING 177000 FROM THREE CLIENTS WHO MOVED THEIR ACCOUNTS TO HIS FIRM PROSECUTORS SAID THAT INSTEAD OF INVESTING THE MONEY ALISANDRO APONTE WHO SET UP ASHLAND CAPITAL MANAGEMENT INC SPENT IT ON PERSONAL AND BUSINESS EXPENSES MR APONTE ALSO PLEADED GUILTY TO PERJURY IN CONNECTION WITH A SECURITIES AND EXCHANGE COMMISSION INVESTIGATION INTO HIS ACTIVITIES PROSECUTORS SAID LAST YEAR MR APONTE SETTLED WITHOUT ADMITTING OR DENYING THE CHARGES A CIVIL LAWSUIT BROUGHT BY THE SEC THAT SUIT INVOLVED ONE OF THE THREE ALLEGED VICTIMS IN THE CRIMINAL INDICTMENT UNDER THE TERMS OF THAT SETTLEMENT MR APONTE AGREED TO PAY BACK ONE OF HIS CLIENTS MORE THAN 100000 AND TO PAY A CIVIL PENALTY OF 103941 9306290090 930629 WHO'S NEWS GITANO NAMES CRAIN ITS OPERATING CHIEF AND A BOARD MEMBER NEW YORK GITANO GROUP INC NAMED C WILLIAM CRAIN 52 YEARS OLD VICE CHAIRMAN CHIEF OPERATING OFFICER AND A DIRECTOR OF THE MARKETER OF BUDGET APPAREL MR CRAIN WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT AT CRYSTAL BRANDS INC WHERE HE MANAGED THE COMPANY'S MEN'S SPORTSWEAR DIVISION HE SUCCEEDS PETER KELLS WHO GITANO SAID RESIGNED TO PURSUE OTHER INTERESTS THE NUMBER OF BOARD MEMBERS REMAINS UNCHANGED AT NINE AT GITANO MR CRAIN WILL WORK AGAIN ALONGSIDE ROBERT GREGORY GITANO'S RECENTLY APPOINTED CHAIRMAN AND CHIEF EXECUTIVE BOTH WERE FORMERLY EXECUTIVES AT VF CORP A MAKER OF LEE JEANS AND OTHER APPAREL GITANO SAID THAT MR CRAIN WILL ASSIST MR GREGORY IN HELPING ACHIEVE A PROFITABLE TURNAROUND GITANO WHICH UNTIL RECENTLY WAS RUN BY ITS FOUNDING DABAH FAMILY HAS BEEN STRUGGLING FOR THE PAST TWO YEARS TO RESTRUCTURE AND DOWNSIZE ITS WHOLESALE APPAREL BUSINESS AND RENEGOTIATE WITH ITS LENDERS IN 1992 GITANO POSTED A NET LOSS OF 2379 MILLION OR 1488 A SHARE ON SALES OF 826 MILLION WHICH INCLUDED A 101 MILLION OPERATIONAL RESTRUCTURING CHARGE 9306290089 930629 WHO'S NEWS CF INCOME PARTNERS LP CF INCOME PARTNERS LP LOS ANGELES FOUR EXECUTIVES RESIGNED AS DIRECTORS OF GENERAL PARTNER CF MANAGEMENT CORP AND TWO RESIGNED FROM CF INCOME'S INVESTMENT COMMITTEE CF INCOME SAID THE EXECUTIVES RESIGNED TO AVOID THE APPEARANCE OF CONFLICT OF INTEREST AS IT CONSIDERS OPTIONS FOR A DEBT REFINANCING ALL THE EXECUTIVES ARE OFFICERS OF CALIFORNIA FEDERAL BANK THE PARENT COMPANY OF CF MANAGEMENT AND CF INCOME'S PRINCIPAL LENDER THE OUTGOING DIRECTORS ARE WILLIAM L CALLENDER GARY W BRUMMETT DAVID B NORTON AND JOSEPH URSINO MR BRUMMETT AND DOUGLAS J WALLIS RESIGNED FROM THE INVESTMENT COMMITTEE OF THE REAL ESTATE CONCERN CF INCOME ALSO SAID THAT LEEANN MOREIN SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CF MANAGEMENT HAD BEEN ELECTED A DIRECTOR OF THE BOARD WHICH NOW HAS THREE MEMBERS 9306290088 930629 MARKETING BRIEF PRODIGY SERVICES CO NFL COVERAGE TO EXPAND THROUGH HOMEPC NETWORK FOOTBALL FANS WILL BE ABLE TO DISCUSS PLAYS AND SUPER BOWL PROSPECTS WITH COACHES AND PLAYERS OF THE NATIONAL FOOTBALL LEAGUE THIS FALL USING THEIR HOME COMPUTERS PRODIGY SERVICES CO NEW YORK ANNOUNCED THE ONLINE INTERACTIVE NETWORK SAID IT IS EXPANDING ITS NFL COVERAGE OF SCHEDULES TEAM REPORTS AND GAME SUMMARIES TO INCLUDE A PUBLIC BULLETIN BOARD NEGOTIATED WITH INDIVIDUAL TEAMS PRODIGY A PARTNERSHIP OF SEARS ROEBUCK & CO AND INTERNATIONAL BUSINESS MACHINES CORP HAS EXCLUSIVE RIGHTS TO THE BULLETIN BOARD AND PUBLICATION OF NFL PRESS RELEASES TEAM MAGAZINES AND OTHER MATERIALS ONLINE THE NETWORK ALSO PLANS TO CREATE AN ELECTRONIC REFERENCE GUIDE TO LEAGUE STATISTICS IN ADDITION THE NFL AND PRODIGY ARE DEVELOPING A PROGRAM TO JOINTLY SELL INTERACTIVE ADVERTISING ON THE NETWORK ALONGSIDE NFL PROGRAMS 9306290087 930629 BUSINESS BRIEF STATE STREET BOSTON CORP MUNICIPAL TRUST OPERATIONS OF CITIBANK ARE ACQUIRED STATE STREET BANK & TRUST CO A UNIT OF STATE STREET BOSTON CORP SAID IT ACQUIRED THE MUNICIPAL TRUST OPERATIONS OF CITICORP'S CITIBANK UNIT TERMS WEREN'T DISCLOSED STATE STREET SAID IN BOSTON THAT IT EXPECTS TO RETAIN NEARLY ALL OF THE UNIT'S STAFF OF 60 PEOPLE IN ITS CURRENT NEW YORK LOCATION THE UNIT PROVIDES TRUST SERVICES INCLUDING RECORDKEEPING AND TRUSTEE SERVICES RELATED TO THE ISSUANCE OF MUNICIPAL SECURITIES CHARLES J KELLY STATE STREET'S EXECUTIVE VICE PRESIDENT OF SECURITIES SERVICES SAID THE ACQUISITION WILL ALLOW THE COMPANY TO BROADEN THE SERVICES OFFERED IN NEW YORK AND TO DEAL WITH EVEN BIGGER SITUATIONS STATE STREET'S MAIN MUNICIPAL TRUST OPERATION IS IN BOSTON BUT IT ALSO HAS OFFICES IN LOS ANGELES AND HARTFORD CONN 9306290086 930629 BUSINESS BRIEF AMERICAN MANAGEMENT SYSTEMS CONSULTING FIRM BUYS BACK COMMON SHARES FROM IBM AMERICAN MANAGEMENT SYSTEMS INC ARLINGTON VA SAID IT PURCHASED 300000 OF ITS COMMON SHARES FROM INTERNATIONAL BUSINESS MACHINES CORP FOR 48 MILLION AMERICAN MANAGEMENT SAID IBM CONTINUES TO HOLD 560500 SHARES OF CONVERTIBLE PREFERRED STOCK WHICH AT THE CURRENT CONVERSION RATE IS EQUIVALENT TO 840750 SHARES OF COMMON STOCK IT HAS ABOUT 16 MILLION COMMON SHARES OUTSTANDING THE COMPANY SAID THE REPURCHASE WILL SAVE IT 230770 A YEAR IN PREFERRED DIVIDENDS IBM HAD CONVERTED 200000 PREFERRED SHARES INTO THE 300000 COMMON SHARES BEFORE THE REPURCHASE THE INFORMATION TECHNOLOGY CONSULTING CONCERN SAID IBM HAS AGREED TO CONVERT ITS REMAINING PREFERRED SHARES TO COMMON SHARES BY SEPT 1 1994 AMERICAN MANAGEMENT SHARES WERE QUOTED AT 1675 YESTERDAY UP 75 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9306290085 930629 BUSINESS BRIEF QSOUND LABS INC AUDIO TECH CONCERN SETTLES IN CLASS ACTION BY INVESTORS QSOUND LABS INC CALGARY ALBERTA SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO SETTLE A SECURITIES CLASSACTION LAWSUIT FILED IN THE US AGAINST THE COMPANY AND SOME OF ITS FORMER AND CURRENT DIRECTORS TERMS WEREN'T DISCLOSED THE SETTLEMENT CALLS FOR CASH PAYMENT BY THE LIABILITY INSURANCE CARRIER FOR THE QSOUND OFFICIALS AND THE ISSUE OF 800000 COMMON SHARES AND WARRANTS TO PURCHASE ANOTHER 450000 COMMON SHARES QSOUND LEGAL COUNSEL JOANNA VARVOS SAID FOUR SUITS BY INVESTORS EARLY LAST YEAR IN US FEDERAL COURT IN LOS ANGELES WERE CONSOLIDATED INTO THE CLASS ACTION THE SUITS ALLEGED VIOLATIONS OF SECURITIES LAWS AND STEMMED FROM OPTIMISTIC COMMENTS BY COMPANY OFFICIALS ABOUT PROSPECTS THE COMPANY DOESN'T ADMIT TO WRONGDOING MS VARVOS SAID QSOUND WHICH LAST WEEK CHANGED ITS NAME FROM ARCHER COMMUNICATIONS INC HAS ABOUT 12760000 COMMON SHARES OUTSTANDING IT SAID THE NEW SHARES WILL DILUTE EXISTING ISSUED SHAREHOLDERS' EQUITY AND CONVERTIBLE DEBT BY 5 QSOUND CLOSED IN OVERTHECOUNTER TRADING YESTERDAY AT 5125 UP 125 CENTS 9306290084 930629 MARKETING & MEDIA AUDITOR FOR TURNER BROADCASTING IS NOW FINANCE CHIEF BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA TURNER BROADCASTING SYSTEM INC NAMED ITS AUDITOR WAYNE H PACE TO BE VICE PRESIDENT FOR FINANCE AND CHIEF FINANCIAL OFFICER MR PACE AN AUDIT PARTNER WITH PRICE WATERHOUSE IN ATLANTA SUCCEEDS RANDY L BOOTH AS TURNER'S TOP FINANCE OFFICIAL MR BOOTH WHO ALSO HAD COME FROM PRICE WATERHOUSE LEFT TURNER EARLIER THIS YEAR TO START A MERGERANDACQUISITIONS CONSULTING FIRM MR BOOTH ACCORDING TO TURNER EXECUTIVES HAS STAYED ACTIVE IN CHAIRMAN TED TURNER'S EXPLORATION OF WAYS TO FREE HIMSELF FROM THE CONTROL OF SHAREHOLDERS TIME WARNER INC AND TELECOMMUNICATIONS INC TURNER OFFICIALS SAID MR BOOTH WILL CONTINUE TO ASSIST MR TURNER WITH THOSE TALKS BUT SOME OF THE RESPONSIBILITY WILL SHIFT TO MR PACE WHO WILL REPORT DIRECTLY TO MR TURNER ON MERGER AND ACQUISITION MATTERS THIS MARKS THE FOURTH CONSECUTIVE TIME TURNER HAS TAPPED A MEMBER OF ITS OUTSIDE AUDITING FIRM TO BE CHIEF FINANCIAL OFFICER MR PACE 46 YEARS OLD HAS BEEN THE PARTNER IN CHARGE OF TURNER'S AUDITS FOR THE PAST SEVEN YEARS AND HAS WORKED ON THE ACCOUNT SINCE 1970 MR BOOTH'S PREDECESSORS WILLIAM SANDERS AND WILLIAM BEVINS WORKED FOR PRICE WATERHOUSE IN ATLANTA THOUGH NOT ON THE TURNER ACCOUNT REVOLVING DOORS BETWEEN AUDITING FIRMS AND THEIR CLIENTS HAVE COME UNDER ATTACK RECENTLY AS PART OF THE ACCOUNTING PROFESSION'S RECENT ATTEMPTS TO PROTECT ITS CREDIBILITY EARLIER THIS MONTH THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS PROPOSED THAT FEDERAL REGULATORS BAR PUBLIC COMPANIES FROM HIRING THE PARTNER RESPONSIBLE FOR THEIR AUDITS FOR ONE YEAR THE ACTION FOLLOWED CRITICISMS THAT SUCH A RELATIONSHIP IN THE PAST HAS LED TO TOO COZY A RELATIONSHIP DISCOURAGING FOR EXAMPLE AN AUDITOR FROM BEING OBJECTIVE OR GIVING THE AUDITOR A LOCK ON THE CLIENT'S BUSINESS IT'S AN APPEARANCE ISSUE SAID DOMINIC TARANTINO WHO IS CHAIRMANELECT OF THE TRADE GROUP AND MANAGING PARTNER OF PRICE WATERHOUSE IN NEW YORK A TURNER BROADCASTING SPOKESMAN SAID THE CABLE PROGRAMMER DOESN'T SEE ANY PROBLEM WITH ITS USE OF ITS AUDITING FIRM AS A SOURCE OF TALENT AS FOR MR PACE HE'S AS STRAIGHT AS A STICK SAID EDWARD C HARRIS WHO RAN PRICE WATERHOUSE'S ATLANTA OFFICE UNTIL 1987 AND NOW RUNS THE NONPROFIT TURNER FOUNDATION MR PACE'S SUPPORTERS ALSO SAID MR PACE HAS MORE EXPERIENCE WITH MERGERS AND ACQUISITIONS THAN MOST AUDITORS SINCE HE HELPED REVIEW TURNER BROADCASTING'S ACQUISITIONS OF THE MGM FILM LIBRARY AND HANNABARBERA PRODUCTIONS INC HE ALSO IS FAMILIAR WITH THE COMPLEX DEBT STRUCTURE TURNER HAS INHERITED FROM SUCH ACQUISITIONS WAYNE HAS PARTICIPATED IN EVERY DUE DILIGENCE THE COMPANY HAS EVER DONE SAID TERENCE F MCGUIRK TURNER'S EXECUTIVE VICE PRESIDENT HE SAID TURNER BROADCASTING ASSISTED BY THE SEARCH FIRM KORN FERRY INTERNATIONAL INTERVIEWED MANY OUTSIDE CANDIDATES BEFORE DECIDING ON MR PACE THE COMPANY ALSO CONSIDERED CHRISTIAN BECKEN TURNER'S TREASURER WHO HAS BEEN ACTING CHIEF FINANCIAL OFFICER SINCE MR BOOTH'S DEPARTURE IT WAS A CASE OF GETTING THE GUY WHO KNOWS THE MOST SAID ONE PERSON CLOSE TO MR TURNER THERE ARE NOT ENOUGH PEOPLE IN THE ORGANIZATION AT THE TOP LEVELS WHO KNOW ALL YOU NEED TO KNOW TO BE CHIEF FINANCIAL OFFICER 9306290083 930629 BUSINESS BRIEF PAYCHEX INC EARNINGS FOR FOURTH QUARTER LIKELY TO TOP EXPECTATIONS PAYCHEX INC CHAIRMAN THOMAS GOLISANO SAID THE COMPANY EXPECTS TO BEAT ANALYSTS' EXPECTATIONS FOR THE FOURTH QUARTER AND PROBABLY WILL REPORT NET INCOME OF 26 CENTS TO 27 CENTS A SHARE FOR THE THREE MONTHS ENDED MAY 31 THAT EXCEEDS THE 25 CENTASHARE CONSENSUS OF SIX ANALYSTS SURVEYED BY FIRST CALL CORP A BOSTON RESEARCH FIRM AND WOULD BE MORE THAN 40 ABOVE THE NET OF 18 CENTS THE COMPANY POSTED LAST YEAR IF THE ROCHESTER NY PAYCHECKPROCESSING COMPANY MEETS ITS FORECASTS WHEN IT REPORTS EARNINGS NEXT WEEK ITS NET INCOME FOR THE YEAR WOULD BE 1 OR 101 COMPARED WITH THE 70 CENTS THE COMPANY POSTED IN FISCAL 1992 THE WHOLE YEAR WAS VERY SUCCESSFUL SAID MR GOLISANO NOTING THAT CLIENT ADDITIONS GREW MORE THAN 11 WHILE REVENUE GAINS WERE ABOUT 18 9306290082 930629 BUSINESS BRIEF ENHANCE FINANCIAL SERVICES GROUP COST OF REINSURANCE CLAIM TO EXCEED PREVIOUS RESERVE ENHANCE FINANCIAL SERVICES GROUP INC SAID A REINSURANCE CLAIM WILL COST IT 129 MILLION IN EXCESS OF A PREVIOUS RESERVE THE COMPANY'S SHARES FELL 10 IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TO 20 DOWN 225 A SHARE ON THE NEWS THE COMPANY IN NEW YORK PREVIOUSLY HAD ESTABLISHED A 95 MILLION RESERVE FOR THE CLAIM WHICH INVOLVES FINANCIAL GUARANTIES OF SECURITIES BACKED BY POOLS OF COMMERCIAL REAL ESTATE THE LOSSES AROSE WHEN THE SECURITIES ISSUED IN 1989 WERE REFINANCED ENHANCE HAD PROVIDED REINSURANCE FOR THE FINANCIAL GUARANTY ON THE SECURITIES ENHANCE SAID THE ADDITIONAL CLAIM WILL COST IT 84 MILLION OR 46 CENTS A SHARE IN THE SECOND QUARTER HOWEVER WALLACE O SELLERS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY STILL EXPECTS TO HAVE AN OPERATING PROFIT FOR THE QUARTER THE COMPANY HAD 677 MILLION IN ASSETS AT THE END OF THE FIRST QUARTER IN THE YEAREARLIER SECOND QUARTER ENHANCE HAD NET INCOME OF 99 MILLION OR 54 CENTS A SHARE 9306290081 930629 BUSINESS BRIEFS AMERICAN TELEPHONE & TELEGRAPH CO'S NCR CORP UNIT RECEIVED A 32 MILLION CONTRACT FROM CHEMICAL BANKING CORP'S CHEMICAL BANK TO UPDATE AND STANDARDIZE 385 NEW YORK BRANCHES WITH AUTOMATION SYSTEMS AND SELFSERVICE TERMINALS WORDPERFECT CORP BEGAN SHIPPING WORDPERFECT 60 FOR DOS AN UPGRADE OF ITS FLAGSHIP WORDPROCESSING SOFTWARE FRANKLIN ELECTRONIC PUBLISHERS INC REACHED AN EXCLUSIVE AGREEMENT TO PUBLISH MERRIAMWEBSTER INC'S COLLEGIATE DICTIONARY 10TH EDITION FOR ITS ELECTRONIC DIGITAL BOOK SYSTEM OWENS & MINOR INC ACQUIRED A KUHLMAN & CO DETROIT A DISTRIBUTOR SPECIALIZING IN SUTURES IN A DEAL VALUED AT LESS THAN 5 MILLION INVACARE CORP ACQUIRED DYNAMIC CONTROLS LTD OF NEW ZEALAND TERMS WEREN'T DISCLOSED CONTROL DATA SYSTEMS INC SIGNED A LETTER OF INTENT TO ACQUIRE CLOSELY HELD ANTARES ELECTRONICS INC A COMPUTER SERVICES CONCERN BASED IN OTTAWA 9306290080 930629 BUSINESS BRIEF ATARI CORP REVERSE STOCK SPLIT ISN'T APPROVED BY SHAREHOLDERS ATARI CORP SUNNYVALE CALIF SAID SHAREHOLDERS DEFEATED A COMPANYPROPOSED 1FOR10 REVERSE STOCK SPLIT AFTER THE COMPANY CHANGED ITS RECOMMENDATION AND ADVISED AGAINST IT AN ATARI OFFICIAL SAID THE COMPANY REVERSED COURSE ON THE SPLIT AFTER ITS STOCK MORE THAN DOUBLED IN PRICE IN AMERICAN STOCK EXCHANGE TRADING ITS STOCK CLOSED AT 2375 DOWN 625 CENTS BEFORE THE PROPOSAL IT HAD TRADED AT ABOUT 1 A SHARE SEPARATELY ATARI SAID IT CONTRACTED WITH INTERNATIONAL BUSINESS MACHINES CORP TO MANUFACTURE ITS MULTIMEDIA ENTERTAINMENT SYSTEM KNOWN AS JAGUAR IN IBM'S CHARLOTTE NC FACILITY ATARI PREVIOUSLY MADE ITS PRODUCTS IN ASIA 9306290079 930629 BUSINESS BRIEF GENERAL MOTORS CORP FIRM AGREES WITH TOYOTA TO CONTINUE JOINT VENTURE GENERAL MOTORS CORP AND JAPAN'S TOYOTA MOTOR CORP HAVE AGREED TO CONTINUE THEIR JOINT NEW UNITED MOTOR MANUFACTURING INC CARMAKING VENTURE IN FREMONT CALIF BEYOND THE 1996 CUTOFF DATE THE ANNOUNCEMENT COMES FIVE DAYS AFTER HOURLY UNION WORKERS VOTED DOWN A REQUEST BY TOYOTA MANAGERS TO ALLOW A THREECREW OPERATION IN NUMMI'S STAMPING PLANT AND IN A PROPOSED PLASTICBUMPER OPERATION LAST WEEK'S VOTE COULD KILL TOYOTA'S PLANS TO EXPAND TRUCK PRODUCTION AND TO BRING SEVERAL MAJOR ASSEMBLY OPERATIONS TO THE FREMONT PLANT A NUMMI SPOKESMAN SAID WE'RE STILL REVIEWING OUR OPTIONS THE GMTOYOTA NUMMI PARTNERSHIP IS SCHEDULED TO END IN DECEMBER 1996 UNDER THE TERMS OF A FEDERAL TRADE COMMISSION ORDER APPROVING THE VENTURE THE COMPANIES YESTERDAY PETITIONED THE FTC TO VACATE THE ORDER NUMMI OFFICIALS SAID IT WILL TAKE AS LONG AS FOUR MONTHS FOR THE FTC TO RESPOND TO THE PETITION UNDER THE NEW PACT BETWEEN GM AND TOYOTA NUMMI WILL CONTINUE AS A 5050 PARTNERSHIP BETWEEN GM AND TOYOTA FOR AN INDEFINITE PERIOD NUMMI BUILDS THE GEO PRIZM COMPACTS FOR GM TOYOTA GETS COROLLA CARS AND SMALL PICKUPS FROM THE PLANT 9306290078 930629 LEISURE & ARTS BOOKSHELF THE END OF THE EMPIRE BY JAMES F HOGE JR FOR 70 YEARS COMMUNIST RULERS OF THE SOVIET UNION RELENTLESSLY STROVE TO CREATE A VERSION OF HISTORY THAT JUSTIFIED AND CLEANSED THEIR BRUTAL PRACTICES AT TIMES IN THAT LONG NIGHT IT WAS CONCEIVABLE THE RULERS' REVISIONISM MIGHT SUCCEED SO COMPLETE WAS THEIR CONTROL OVER MOST ASPECTS OF LIFE IN THE SOVIET UNION THE CONTROL WAS FRAYING WHEN MIKHAIL GORBACHEV THE FIRST GENERAL SECRETARY UNMARKED BY BLOOD OR CORRUPTION CAME TO POWER IN 1985 INTENT ONLY ON REFORMING SOCIALISM BUT THE FREEDOMS HE UNLEASHED THROUGH PERESTROIKA AND GLASNOST FAILED TO REVITALIZE A COLLAPSING ECONOMY INSTEAD THEY DESTROYED THE ENTIRE SYSTEM UNTIL HE RESIGNED ALMOST SEVEN YEARS LATER MR GORBACHEV REMAINED A BELIEVING COMMUNIST NOT SO OTHERS EVEN THOSE CLOSEST TO HIM IN HIS ORIGINAL PURPOSE FROM THE BEGINNING ALEKSANDR YAKOVLEV HAD BEEN MR GORBACHEV'S LOYAL IDEOLOGICAL PROD NUDGING THE GENERAL SECRETARY TO MOVE FURTHER AND FASTER BY 1990 MR YAKOVLEV STILL LOYAL TO MR GORBACHEV PERSONALLY COULD NO LONGER SUPPORT A SUPPOSED REFORM OF SOVIET SOCIALISM IN THE INTERVENING TIME REAL HISTORY SET LOOSE BY THE LIFTING OF TOTALITARIANISM'S SUFFOCATING RESTRAINTS VENGEFULLY RETURNED IT LED MR YAKOVLEV AS SO MANY OTHERS TO JUDGE THE PARTY IN A WAY MR GORBACHEV COULD NOT HISTORY HAS NEVER KNOWN SUCH A CONCENTRATED HATRED TOWARDS MAN HE SAID MR YAKOVLEV'S CONVERSION IS RECOUNTED TWOTHIRDS OF THE WAY THROUGH LENIN'S TOMB RANDOM HOUSE 576 PAGES 25 DAVID REMNICK'S MOVING ILLUMINATION OF THE COLLAPSE OF COMMUNIST FAITH AND THE SOVIET EMPIRE IT EPITOMIZES A CENTRAL THEME OF MR REMNICK'S MASTERFUL BOOK WHEN HISTORY WAS NO LONGER AN INSTRUMENT OF THE PARTY HE WRITES THE PARTY WAS DOOMED TO FAILURE THE TELLERS OF TRUTH WERE GREAT WRITERS NEWLY FEARLESS JOURNALISTS REFORM POLITICIANS INDIVIDUAL MILITARY OFFICERS EVEN AN OLYMPIC ATHLETE AT THE 1989 CONGRESS OF PEOPLE'S DEPUTIES OLYMPIC WEIGHTLIFTER YURI VLASOV DENOUNCED THE KGB AS A VAST UNDERGROUND EMPIRE THAT HAD BEEN USING ITS TROOPS AND PRISONS TO SLAUGHTER THE BEST AND THE BRIGHTEST OF EVERY SOVIET GENERATION SINCE THE REVOLUTION IT WAS STILL A TIME TO BE FEARFUL A TIME BEFORE THE KGB GAVE TOURS OF ITS PREMISES HELD A MISS KGB BEAUTY CONTEST AND CONVERSED CIVILLY ON THE TALK SHOWS OF A LIBERATED TELEVISION INDUSTRY HISTORY UNLEASHED CRIMES OF NEARLY LIMITLESS KINDS AND SEEMINGLY WITHOUT END SURFACED CONSIDER REFORMIST HISTORIAN AND ARCHIVIST YURI AFANASYEV PUBLICIZED EVIDENCE OF SIXTYFOUR FOLDERS OF KGB AND PARTY DOCUMENTS WHICH DISCLOSED THAT BETWEEN 1935 AND 1941 19800000 PEOPLE HAD BEEN ARRESTED AND OF THESE SEVEN MILLION WERE EXECUTED IN PRISON EVERY YEAR THOUSANDS OF INFANTS THROUGHOUT SOVIET CENTRAL ASIA DIED WITHIN TWELVE MONTHS OF BIRTH COUNTLESS OTHERS SUFFERED MORE SLOWLY WEAKENED BY THE HEAT AND INFECTED WATER THE PESTICIDES FROM THE COTTON FIELDS A DIET BUILT ON BREAD AND TEA AND SOUP IN THE URALS AROUND THE STEEL TOWN OF MAGNITOGORSK SATELLITE PICTURES SHOWED THAT THE MILLS HAD PRODUCED A ZONE OF RUINED AIR AND SOIL 120 MILES LONG AND 40 MILES WIDE IN WINTER THE SNOW WAS CRUSTED BLACK IN THE SUMMER THE GRASS GREW IN SAD BROWNISH TUFTS THE PERSONAL ATTITUDES BEHIND THESE CALAMITIES REVERBERATE OVER THE YEARS LENIN'S COMMISSAR OF JUSTICE NIKOLAI KRYLENKO SAYING IN 1918 THAT EXECUTION OF THE INNOCENT WILL IMPRESS THE MASSES EVEN MORE THAN EXECUTING THE GUILTY STALIN IN 1937 ORDERING A REGIONAL OFFICIAL TO DOUBLE HIS PLANNED 9000 EXECUTIONS DEPUTY PRIME MINISTER BORIS SHCHERBINA SECRETLY DECREEING AFTER THE CHERNOBYL NUCLEAR EXPLOSION THAT SOVIET DOCTORS COULD NOT CITE RADIATION AS A CAUSE OF DEATH MR REMNICK SHOWS HOW THIS UNEARTHED HISTORY EXPOSED THE PARTY TO BE ROTTEN AT ITS CORE EVEN THEN IT REQUIRED THE MORAL AUTHORITY OF ANDREI SAKHAROV AND THE COURAGE OF BORIS YELTSIN TO CREATE AND HOLD FIRM A PUBLIC WILL TO WITHSTAND THE PARTY'S LAST AGGRESSION THE ABORTED COUP OF AUGUST 1991 MR GORBACHEV UNDERSTOOD THAT MUCH TO THE EMISSARIES SENT BY THE PUTSCHISTS TO HIS CRIMEAN VACATION HOME MR GORBACHEV DECRIED DO YOU THINK THE PEOPLE ARE SO FATIGUED THAT THEY WILL JUST FOLLOW ANY DICTATOR MR REMNICK OBSERVED THE LAST DAYS OF THE SOVIET EMPIRE WHILE REPORTING FOR THE WASHINGTON POST IN LENIN'S TOMB HE VIVIDLY TELLS THE STORY THROUGH THE WORDS AND EXPERIENCES OF THE PARTICIPANTS LEADERS DISSENTERS AND AVERAGE PEOPLE MR REMNICK MAKES HIMSELF A CHARACTER IN THE STORY AS WELL HE IS THE WITNESS FOR US ALL PROVIDING THE EMOTIONAL FRAMEWORK THROUGH HIS COMPASSION AND EMPATHY HIS HUMOR AND HIS OUTRAGE BUT THAT IS NOT ALL AS AN ANALYST HIS JUDGMENTS ARE SOUND AND ACUTE AS A WRITER HIS CLARITY AND ELEGANCE ARE BEFITTING A CHRONICLER OF ONE OF HISTORY'S GREATEST TRAGEDIES THE STORY OF COURSE IS NOT OVER THERE IS MORE HISTORY TO BE MADE AND MR REMNICK LEAVES NO FALSE ILLUSIONS AS A SOLACE FOR READERS FOR A SENSE OF THE FUTURE MR REMNICK TURNS TO THE HISTORIAN YURI AFANASYEV THE OLD SYSTEM WILL NEVER REGAIN ITS SHAPE BUT ALL KINDS OF POSSIBILITIES EXIST FOR THE FUTURE OF RUSSIA WE COULD LOOK LIKE SOUTH KOREA OR SAY LATIN AMERICA WITH A TAINT OF SICILY IT IS A FAR FROM SURE THING THAT WE WILL RESEMBLE THE DEVELOPED WESTERN DEMOCRACIES THE PULL OF THE STATE SECTOR THE AUTHORITARIAN TUG IS STILL A VERY DANGEROUS THING MR HOGE IS EDITOR OF FOREIGN AFFAIRS 9306290077 930629 INTERNATIONAL JAPANESE CITE NEED FOR BOLD CHANGE BUT NOT AT THE EXPENSE OF STABILITY' BY MICHAEL WILLIAMS AND YUMIKO ONO STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE POLITICAL BUZZWORD IN JAPAN THESE DAYS IS CHANGE THE NEWS MEDIA THE POLITICIANS THE SOCIAL CRITICS EVERYBODY WANTS CHANGE EVERYBODY THAT IS EXCEPT AKIRA KIMOTO AND MANY VOTERS LIKE HIM CHANGE THEY ASK WHO NEEDS IT LOOK HOW WEALTHY WE'VE BECOME SAYS MR KIMOTO A 60YEAROLD TOKYO RETIREE STANDING NEAR BANNERS THAT URGE CITIZENS TO VOTE WHERE'S THE NEED TO CHANGE I WANT THINGS TO STAY THE WAY THEY ARE AFTER ALL THIS IS CAUTIOUS JAPAN WHERE A PLEASANT SURPRISE IS A CONTRADICTION IN TERMS SINCE THE GOVERNMENT OF JAPAN'S RULING LIBERAL DEMOCRATIC PARTY FELL JUNE 18 AFTER FAILING TO PASS POLITICAL REFORM MEASURES PLENTY OF PEOPLE HAVE TALKED ABOUT A BOLD POLITICAL AWAKENING SWEEPING THE NATION RIOTOUS DEBATES AT THE WATER COOLER GUESS AGAIN I WANT THINGS TO RETURN TO WHAT WE HAD BEFORE WITHOUT THE CONFUSION SAYS JIRO TOMOYOSHI WHO SELLS TORTOISESHELL COMBS AT HIS SMALL SHOP ON A NARROW DOWNTOWN STREET MR TOMOYOSHI SAYS HE VOTES EVERY YEAR BUT HE PLANS TO ABSTAIN IN NEXT MONTH'S NATIONAL ELECTION INSTEAD HE SAYS HE'S PRAYING FOR STABILITY THE SENTIMENT IS A FAMILIAR TRUISM ABOUT JAPAN A HOMOGENEOUS AND CONFORMIST PLACE WHERE SOCIAL CHANGE AND BREAKS WITH THE NORM ARE HARD TO PULL OFF SOME EXAMPLES FOR 27 YEARS RUNNING THE BESTSELLING CAR IN JAPAN HAS BEEN THE TOYOTA COROLLA IN 1987 74 OF ALL CARS BOUGHT WERE WHITE MOST COUPLES IN JAPAN OPT FOR THE PACKAGED WEDDING CEREMONY RUN BY HOTELS JUST LIKE THEIR FRIENDS GOT UNLIKE OTHER INDUSTRIALIZED NATIONS JAPAN STILL HASN'T ADOPTED DAYLIGHT SAVINGS TIME ONE OF THE COUNTRY'S POPULAR MOVIES IS TORASAN THE TALE OF A SENTIMENTAL TRAVELING SALESMAN NOW ENTERING ITS 45TH SEQUEL JAPAN'S COHESIVENESS CLEARLY HELPS EXPLAIN ITS EXTRAORDINARY STRENGTH AND PROSPERITY BUT IT ALSO EXPLAINS WHY POLITICAL CHANGE IS A SLOW PROCESS MOST PUNDITS BELIEVE THE LDP BESET AGAIN BY CORRUPTION WILL LOSE ITS MAJORITY IN PARLIAMENT IN THE JULY 18 VOTE FOR THE FIRST TIME IN 38 YEARS ALTERNATIVE PARTIES CALLING FOR AN END TO GRAFT ARE SPROUTING EVERYWHERE STILL VOTERS ARE SLOW TO EMBRACE THIS RAUCOUSNESS MANY ARE FREEZING UP IN ONE POLL LAST WEEK 45 OF RESPONDENTS SAID THEY DIDN'T SUPPORT ANY PARTY LAST WEEKEND FEWER PEOPLE TURNED OUT TO VOTE IN TOKYO'S MUNICIPAL ELECTIONS THAN EVER BEFORE THE LDP HELD ITS GROUND THOUGH ONE UPSTART PARTY MADE AN IMPRESSIVE SHOWING WAIT AND SEE AND THEN GO WITH THE GROUP IT'S A CULTURAL TRAIT THAT SHOWS UP ALL THE TIME WHAT'S GOOD FOR LUNCH WHATEVER YOUR BOSS ORDERS IN JUZO ITAMI'S MOVIE TAMPOPO OFFICE WORKERS EATING AT A FRENCH RESTAURANT ORDER EXACTLY WHAT THE MANAGING DIRECTOR DOES SOLE SOUP AND BEER WHEN AN UNDERLING ASKS WHAT ELSE IS ON THE MENU HIS SUPERIOR KICKS HIM WAIT AND SEE IT'S A TRAIT THAT BEGETS POLITICAL DECISIONS LIKE THESE MASANORI ENMEI 38 SAYS HE'S BACKING ONE OF THE COUNTRY'S NEW REFORM GROUPS BECAUSE THE LDP IS ARROGANT AND CORRUPT BUT HE ADDS I DON'T WANT BIG CHANGES YOSHIMITSU MORI 37 SAYS HE'LL VOTE FOR THE COMMUNISTS BUT HE SAYS HIS IS ONLY A PROTEST VOTE HE DOESN'T REALLY WANT THEM TO WIN I SUPPORT THE LIBERAL DEMOCRATS SAYS SHOJIRO MAKIDAI A 72YEAROLD SHOESHINE MAN WHO HAS WORKED THE SAME CORNER IN DOWNTOWN TOKYO FOR 48 YEARS PEOPLE SHOULD STICK TO ONE THING PEOPLE SHOULD ALSO STAY IN LINE AT TATSUTA NAMBU ELEMENTARY SCHOOL IN AICHI CENTRAL JAPAN LITTLE KIDS MUST WEAR WHITE BICYCLE HELMETS WHILE COMMUTING TO SCHOOL EVEN IF THEY WALK AND EVEN ON BLISTERINGHOT DAYS WHEN SOME MOTHERS BEGGED THE SAFETYCONSCIOUS PRINCIPAL TO LET PEDESTRIAN KIDS WEAR COTTON HATS ON WARM DAYS THE SCHOOL SAID NO IF THE SCHOOL GIVES OPTIONS SAYS A SCHOOL OFFICIAL IT'S HARD TO SET A UNIFIED RULE AND DON'T FORGET THE UNIFORMLY PROPER SMILE JAL COORDINATION SERVICE CO TEACHES FEMALE OFFICE WORKERS IN JAPAN EXACTLY HOW TO BOW AT THREE ANGLES15 30 AND 45 DEGREES AND TO MANIPULATE THE FACIAL MUSCLES INTO THE PERFECT SMILE ABOUT 800 WOMEN FROM 300 COMPANIES STUDY UNDER JAL EACH YEAR PAYING 240 EACH FOR A TWODAY SEMINAR CHANGE IN JAPAN SAYS SOCIOLOGIST AKIRA FUJITAKE IS STOPPED BY A BARRIER CALLED THE GROUP' GROUPTHINK HE SAYS PLACES HARMONY OVER RATIONALITY AND THEREFORE ACTS TO REJECT CHANGE THE JAPANESE LIKE TO SAY THAT PLAYING IT SAFE IS A HABIT THAT ARISES FROM THE COUNTRY'S AGRARIAN CULTURE AND ABIDING VILLAGE MENTALITY EVEN PEOPLE WHO CRAVE REAL CHANGE TEND TO RUN AWAY WHEN CONFRONTED WITH THE OPPORTUNITY SAYS MR FUJITAKE SO IT IS THAT IN ONE NEWSPAPER POLL LAST WEEK 62 OF THOSE SURVEYED SAID THEY HOPE A COALITION OF THE LDP AND OTHER PARTIES RUNS JAPAN NOT ANY ONE NEW PARTY BY ITSELF ONLY 24 WANTED TO BOOT THE LDP OUT PEOPLE JUST WANT TO SCRAPE THE RUST OFF THE EXISTING SYSTEM SAYS SOCIAL CRITIC YUKIO AKATSUKA INDEED IN AN ALLEY ETCHED BETWEEN A JUMBLE OF SMALL HOUSES A WOMAN NAMED MRS MATSUMOTO TAKES A BREAK FROM PETTING A PAIR OF CATS TO SAY SHE'S WORRIED ABOUT ALL THE TALK OF POLITICAL CHANGE I HAVE STOCKS AND STOCK PRICES MIGHT GO DOWN SAYS THE 43YEAROLD HOUSEWIFE NOT THAT JAPAN IS ANY STRANGER TO TRANSFORMATION THE COUNTRY HAS GONE FROM POORHOUSE TO POWERHOUSE IN LESS THAN 50 YEARS AND EMBRACES FADS AND FASHIONS WITH GUSTO IN NEXT MONTH'S NATIONAL ELECTION THE JAPANESE MAY WELL OPT TO CLEAN POLITICAL HOUSE MOST PUNDITS SAY A COALITION GOVERNMENT IS LIKELY TO EMERGE I HOPE THE OPPOSITION PARTIES BEAT THE LIBERAL DEMOCRATS AND THERE WILL BE A NEW AGE SAYS SHOZO AOKI 81 WHO SELLS LUCKY CHARMS AT A TOKYO SHRINE THAT SAID THE JAPANESE NEVER IMMERSE THEMSELVES IN TRENDS AND FADS TO THE MARROW OF THEIR BONES CONTENDS YAMATO SHIINE EDITOR OF HANAKO A WOMEN'S TREND MAGAZINE THEY HAVE NO QUALMS ABOUT CHANGING THINGS RELATED TO THE OUTER LAYERS OF THEIR LIVES BUT FUNDAMENTAL THINGS LIKE POLITICS AND ECONOMICS DON'T CHANGE 9306290076 930629 ESTONIA MONETARY MODEL FOR RUSSIA BY GAIL BUYSKE RUSSIA RECENTLY THREATENED ESTONIA'S ECONOMIC FUTURE WHEN IT CUT OFF NATURAL GAS SUPPLIES TO THE SMALL BALTIC NATION THAT'S TROUBLING IF ONLY BECAUSE ESTONIA IN MANY WAYS REPRESENTS A MODEL FOR UKRAINE AND OTHER SOVIET SUCCESSOR STATES OF HOW TO ESTABLISH AN EFFECTIVE ECONOMIC PROGRAM ESTONIA'S SPECIAL CURRENCY BOARD SYSTEM HAS MADE A CRITICAL CONTRIBUTION TO THE INITIAL SUCCESS AND CREDIBILITY OF THE NATION'S ECONOMIC REFORM A CURRENCY BOARD IS A SYSTEM IN WHICH THE GOVERNMENT TIES THE EXCHANGE RATE OF ITS CURRENCY TO A FOREIGN CURRENCY THE NOTES AND COINS ARE 100 BACKED BY THE CURRENCY BOARD'S RESERVES OF THE FOREIGN CURRENCY AND OTHER ASSETS SUCH AS GOLD THIS HAS THREE KEY IMPLICATIONS FIRST CHANGES IN THE MONEY SUPPLY ARE DRIVEN BY CHANGES IN THE CURRENCY BOARD'S ASSETS THEREFORE MONETARY POLICY CANNOT BE USED AS A TOOL OF ECONOMIC MANAGEMENT SECOND THE CENTRAL BANK CAN'T PRINT MONEY TO FINANCE DEFICITS BECAUSE THIS MONEY WOULD HAVE TO BE BACKED BY CURRENCY BOARD ASSETS THIRD THE CENTRAL BANK CANNOT ACT AS LENDER OF LAST RESORT TO THE BANKS AGAIN BECAUSE OF THE ADDED CURRENCY REQUIRED IN FACT A PURE CURRENCY BOARD SYSTEM DOES NOT EVEN HAVE A CENTRAL BANK AND ONLY BANK NOTES ARE BACKED BY CURRENCY BOARD ASSETS ESTONIA'S SYSTEM IS MIXED IT HAS A CENTRAL BANK AND THE CURRENCY BOARD BACKS THE RESERVES OF THE COMMERCIAL BANKS AS WELL AS BANK NOTES ESTONIA INTRODUCED ITS NATIONAL CURRENCY THE KROON ON JUNE 20 1992 THE KROON WHICH WAS ALSO ESTONIA'S CURRENCY IN THE INTERWAR PERIOD IS BACKED BY FOREIGN CURRENCY ASSETS AND GOLD THAT THE GOVERNMENT PLACED ABROAD BEFORE WORLD WAR II AND THEN BROUGHT BACK WHEN ESTONIA REGAINED INDEPENDENCE THE KROON WAS PEGGED TO THE GERMAN MARK AT 8 TO 1 WHICH WAS APPROXIMATELY THE RUBLEMARK FREEMARKET EXCHANGE RATE AT THE TIME PRICES IN ESTONIA HAVE LOST THEIR SURREAL QUALITY SINCE THE INTRODUCTION OF THE KROON AND THE REMOVAL OF SUBSIDIES ONCE A GOOD RESTAURANT MEAL WITHOUT FOREIGN WINE OR BEER WOULD COST UNDER 1 SUCH MEALS ARE NOW IN THE 5 TO 12 RANGE BEFORE THE REFORM A TAXI TO THE AIRPORT COULD COST 8 OR MORE PAID IN DOLLARS WHICH WAS MORE THAN AN EQUIVALENT TRIP IN NEW YORK CITY WOULD COST FOR THE TIME AND DISTANCE SUCH TRIPS NOW COST BETWEEN 2 AND 4 PAID IN KROON EVEN TAXI DRIVERS THE BAROMETER OF MARKET SENTIMENT IN ANY COUNTRY WILL ACCEPT KROON INSTEAD OF DOLLARS IS A SIGN OF THE KROON'S SUCCESS BIG CRISES ASIDE THE DISCIPLINE OF THE CURRENCY BOARD SHOULD CONTRIBUTE TO A BETTER FUTURE ESTONIA MANAGED TO BRING ITS INFLATION DOWN FROM THE ALMOST 1000 ANNUAL RATE CHARACTERISTIC OF THE RUBLE AT THE BEGINNING OF 1992 TO A CURRENT ESTIMATED ANNUAL INFLATION RATE OF 40 ESTONIA RAISED TAXES AND CUT SUBSIDIES TO ACHIEVE A BALANCED BUDGET IN 1992 IT HAS PROJECTED ONE FOR 1993 AS WELL AS ONE FOREIGN ADVISER OBSERVED THIS MUST BE ONE OF THE FEW CASES IN THE 20TH CENTURY IN WHICH A COUNTRY MANAGED TO BALANCE ITS BUDGET IN THE MIDST OF AN ECONOMIC TRANSFORMATION THIS TRANSFORMATION WHICH INCLUDED THE UNEXPECTED DISRUPTION OF THE CIS MARKET LED TO A 25 DECLINE IN GROSS DOMESTIC PRODUCT IN 1992 ESTONIA HAS ALSO ENFORCED MARKET DISCIPLINE ON ITS COMMERCIAL BANKS MORE EFFECTIVELY THAN ANY GOVERNMENT IN THE REGION IT DID SO BY LIQUIDATING ONE LARGE BANK LAST FALL AND MERGING TWO OTHERS THE ONLY COMPENSATION FOR DEPOSITORS IN THE BANK THAT WAS CLOSED CAME FROM THE BANK'S LIQUIDATED ASSETS THERE WAS NO BAILOUT ESTONIA'S OTHER BANKS CUT BACK ON RISKY LENDING PRACTICES DEPOSITORS ARE BEING CAREFUL AS WELL A FURTHER ADVANTAGE OF A CURRENCY BOARD IS THAT IT REDUCES EXCHANGE RATE RISK AND THEREFORE FACILITATES FOREIGN TRADE AND INVESTMENT ESTONIA EARNS HIGHER RATINGS THAN ITS BALTIC NEIGHBORS FOR INVESTMENT IT MANAGED TO ACHIEVE A SMALL CURRENT ACCOUNT SURPLUS IN 1992 EVEN WHILE SHIFTING ITS TRADE RELATIONSHIPS AWAY FROM THE CIS FINLAND EDGED OUT RUSSIA AS ESTONIA'S LARGEST EXPORT PARTNER AND WAS CLOSE BEHIND RUSSIA AS THE SECONDLARGEST PROVIDER OF ESTONIA'S IMPORTS CURRENCY BOARDS HAVE DRAWBACKS THEIR ABILITY TO BOLSTER A GOVERNMENT'S CREDIBILITY REDUCES THE GOVERNMENT'S FLEXIBILITY IN DEALING WITH THE PAIN OF ECONOMIC REFORM ALTHOUGH REGISTERED UNEMPLOYMENT IN ESTONIA IS STILL A LOW 325 THE GOVERNMENT WON'T BE ABLE TO USE MONETARY POLICY TO STIMULATE ECONOMIC GROWTH WHEN UNEMPLOYMENT RISES ANOTHER DRAWBACK IS THE LACK OF CONTROL OVER FOREIGNEXCHANGE FLUCTUATIONS AS THE MARK GOES SO GOES THE KROON CAN A PROGRAM THAT WORKS IN A SMALL COUNTRY LIKE ESTONIA OR IN HONG KONG WHICH ALSO HAS A CURRENCY BOARD WORK AS WELL IN LARGE COUNTRIES THERE IS NO ECONOMIC REASON WHY IT WOULD NOT DURING THE RUSSIAN CIVIL WAR NORTHERN RUSSIA HAD A CURRENCY BOARD DESIGNED BY JOHN MAYNARD KEYNES THE PREREQUISITES FOR FOLLOWING ESTONIA'S MODEL ARE ADEQUATE RESERVES AND A STRONG COMMITMENT TO ECONOMIC REFORM ESTIMATES SHOW RUSSIA WOULD REQUIRE RESERVES OF 3 BILLION TO 6 BILLION TO BACK ITS CURRENCY WELL WITHIN THE RANGE OF AID PROGRAMS FOR RUSSIA THIS IS A TOPIC FOR G7 MEMBERS TO DISCUSS AT JULY'S SUMMIT IN ANY CASE THE REAL STUMBLING BLOCK IS NOT THE RESERVE ASSETS IT IS FINDING THE COURAGE TO STICK WITH ECONOMIC REFORM MS BUYSKE A CONSULTANT WHO SPECIALIZES IN BANKING REFORM HAS WORKED ON SEVERAL PROJECTS WITH THE ESTONIAN GOVERNMENT 9306290075 930629 MARKETING & MEDIA MARKETSCAN AMERICANS HUNGER FOR A MORE HOMEY PIZZA BY JAMISON S PRIME STAFF REPORTER OF THE WALL STREET JOURNAL MORE THAN EVER AMERICANS WANT THEIR SLICE OF THE PIE THE PIZZA PIE PEOPLE EAT THEM OUT OR HAVE THEM DELIVERED INCREASINGLY THEY MAKE THEM AT HOME AND THAT'S HEATING UP A LOT OF COMPETITION HOMEMADE AND DOITYOURSELF PIZZAS ARE GROWING IN POPULARITY AND PREBAKED CRUSTS SHAKEON TOPPINGS AND PREPARED SAUCES ABOUND SALES OF REFRIGERATED PIES AND PIZZA KITS FOR INSTANCE JUMPED 111 TO 425 MILLION IN THE 12 WEEKS ENDED APRIL 25 THE LATEST PERIOD FOR WHICH DATA HAVE BEEN ISSUED BY CHICAGOBASED INFORMATION RESOURCES INC'S INFOSCAN SERVICE ONE PARTICULARLY SUCCESSFUL PRODUCT HAS BEEN BOBOLI ITALIAN SHELLS ROUNDS OF BREAD MEANT TO BE TOPPED AT HOME AND BAKED OR GRILLED THEY POSTED A 16 JUMP IN SALES FOR THE PERIOD AND SOME NEW PIZZA SAUCES ARE BEING GOBBLED UP FOODMARKETING EXPERTS SAY PIZZA FIXINGS PLAY TO THE GROWING DESIRE OF AMERICANS TO PREPARE THEIR OWN MEALS BUT WITHOUT TOO MUCH FUSS AND BOTHER JUST AS CAKE MIXES GIVE HOME BAKERS A SENSE OF PARTICIPATION THE ADDING OF A FRESH EGG AND WATER SO PIZZA KITS AND PREBAKED CRUSTS APPEAL TO CREATIVITY WHILE TAKING LITTLE PREPARATION TIME THAT COMBINATION OF CREATIVITY AND CONVENIENCE ENTICED KRISTY NORRIS OF CHICAGO WHO MAKES HOMEMADE PIZZAS FREQUENTLY SHE USUALLY BUYS A PIZZA SHELL AND ADDS HER OWN TOPPINGS BUT LAST WEEK SHE PURCHASED HER FIRST REFRIGERATED PIZZA KIT WE'RE REALLY VERY BUSY SO THE PROMISE OF HOMEMADE PIZZA IN 10 MINUTES IS APPEALING SAYS THE VETERINARYHOSPITAL RECEPTIONIST SIMILARLY BOBOLI ITALIAN SHELLS ONE OF THE DOITYOURSELF PIZZA COMPONENTS CAN BE MORE OF A PARTICIPATORY ACTIVITY SAYS A SPOKESWOMAN FOR THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS AT THE HEART OF BOBOLI'S SUCCESS IS THE CONVENIENCE THAT THE MICROWAVE GENERATION DEMANDS SAYS MARTIN FRIEDMAN EDITOR OF NEW PRODUCT NEWS A TRADE PUBLICATION THEY'RE REALLY VERY HANDY HE SAYS GROWING SALES OF PIZZA SHELLS PROMPT MR FRIEDMAN TO PREDICT THAT DOITYOURSELF PIZZA TOPPINGS WILL BE ONE OF THE 20 TOP FOOD TRENDS OF 1993 ALTHOUGH THE NUMBER OF NEW PRODUCTS HAS BEEN SMALLER THAN HE EXPECTED THOSE LAUNCHED APPEAR TO BE DOING WELL HE SAYS CONSIDER THE RESPONSE TO KRAFT'S BOBOLI PIZZA SAUCE INTRODUCED IN FEBRUARY THE SAUCE RANG UP SALES OF MORE THAN 2 MILLION IN THE APRIL 26 PERIOD ACCORDING TO SUPERMARKETSALES DATA GATHERED BY INFORMATION RESOURCES THAT RANKED IT THIRD IN SALES BEHIND UNILEVER GROUP'S ESTABLISHED RAGU PIZZA QUICK SAUCE AND RAGU PIZZA SAUCE THE BOBOLI SAUCE PACKAGED IN PREMEASURED PORTIONS IS DISPLAYED ON THE SAME RACKS AS THE BREAD SHELLS ANOTHER THRIVING NEW PRODUCT IS CAMPBELL SOUP'S PREGO PIZZA SAUCE INTRODUCED LAST NOVEMBER IN THE APRIL 26 PERIOD THE SAUCE CAPTURED A 13 SHARE OF THE 58 MILLIONAYEAR PREPAREDSAUCE MARKET THE PIZZA SAUCE THE FIRST BRAND EXTENSION OUTSIDE PREGO'S LINE OF SPAGHETTI SAUCES IS AVAILABLE IN FOUR VARIETIES A CAMPBELL SPOKESWOMAN ALSO EMPHASIZES THE SAUCE'S CONVENIENCE NOTING THAT IT TAKES ABOUT 10 MINUTES TO ASSEMBLE AND BAKE A PIZZA USING PREGO SAUCE AND A PREPARED BASE INTRODUCTION OF THE BOBOLI AND PREGO PRODUCTS HAS SENT RIPPLES THROUGH THE REST OF THE PREPAREDPIZZASAUCE CATEGORY ALTHOUGH THE CATEGORY SHOWS OVERALL GROWTH SALES FOR ALL BUT THE TWO NEW ENTRIES DECLINED IN THE 12WEEKS ENDED APRIL 25 INFORMATION RESOURCES DATA SHOW THAT CONAGRA'S HUNTS BRAND SUFFERED THE SHARPEST DECLINE IN SALES PLUNGING 55 FROM A YEAR EARLIER NESTLE SAW ITS CONTADINA BRAND OF PIZZA SAUCE SLIP TO FIFTH PLACE IN SALES FROM THIRD OVER THE PERIOD WHILE SALES OF ITS PIZZA SQUEEZE BOTTLED SAUCE FELL 40 SALES OF UNILEVER'S BESTSELLING RAGU PIZZA QUICK SAUCE DECLINED 28 AND ITS NO 2 ORIGINAL RAGU SAUCE WAS OFF BY 20 OUR HOPE IS THE NEW PRODUCTS WILL HELP EXPAND THE MARKET SAYS A SPOKESMAN FOR UNILEVER'S VAN DEN BERGH FOODS DIVISION WHICH RECENTLY BOLSTERED ITS RAGU PIZZA QUICK LINE WITH A CHUNKYTOMATO VARIETY THE COMPETITION ALSO IS FORCING COMPANIES TO BECOME MORE INNOVATIVE WE'D BE FOOLS AS BRAND MANAGERS TO SIT ON OUR LAURELS HE SAYS NOTING THE SUCCESS OF NEWCOMER BOBOLI ONE INNOVATION IS NESTLE'S CONTADINA REFRIGERATEDPIZZA KIT A HYBRID BETWEEN THE BRAND'S CANNED PIZZA SAUCE AND ITS LINE OF REFRIGERATED PASTAS THE 5 KIT INTRODUCED NATIONALLY LAST YEAR IS A READYTOASSEMBLE PACKAGE THAT INCLUDES A PIZZA SHELL SAUCE AND TOPPINGS IT NOW HOLDS NEARLY 15 OF THE 170 MILLIONAYEAR MARKET FOR REFRIGERATED PIZZAS AND PIZZA KITS A CATEGORY CONSISTING PRIMARILY OF READYTOBAKE AND PRIVATELABEL DELI PIZZAS WITH THE SUCCESS OF BREAD SHELLS AND REFRIGERATEDPIZZA KITS OTHER FOOD COMPANIES ARE ENTERING THE MARKET A SPOKESWOMAN FOR SARGENTO PLYMOUTH WIS SAYS ITS TWOYEAROLD PACKAGED PIZZA DOUBLE CHEESE BLEND OF SHREDDED MOZZARELLA AND CHEDDAR CHEESES IS DOING VERY WELL AND BURNS PHILP OF AUSTRALIA IS INTRODUCING A LINE OF FOUR SHAKEON SEASONINGS UNDER THE DURKEE PIZZA TOPPINS NAME THE NEW HOT SELLERS HAVEN'T THAWED THE 135 BILLIONAYEAR MARKET FOR FROZEN PIZZA SALES OF WHICH ARE CONTINUING TO CLIMB ACCORDING TO DATA FROM INFORMATION RESOURCES THE SPOKESWOMAN FOR KRAFT FOR INSTANCE SAYS HER COMPANY ISN'T WORRIED ABOUT BOBOLI BITING INTO SALES OF ITS TOPSELLING TOMBSTONE FROZEN PIZZA WE THINK THERE'S ENOUGH ROOM IN THE MARKET FOR BOTH OF THEM SHE ADDS MR FRIEDMAN OF NEW PRODUCT NEWS SAYS DOITYOURSELF INGREDIENTS HAVE MADE ONLY SMALL INROADS IN THE OVERALL PIZZA MARKET WHICH IS ESTIMATED AT 3 BILLION ANNUALLY BUT WITH A LOT OF ROOM FOR EXPANSION HE PREDICTS THAT THE CATEGORY SHOULD CONTINUE TO GENERATE PRODUCTS A RECENT KRAFT PROMOTION FOR EXAMPLE TIED THE BOBOLI SHELL AND SAUCE WITH PACKAGES OF KRAFT SHREDDED MOZZARELLA CHEESE THE COMPANY'S OSCAR MAYER MEATS DIVISION IS A POTENTIAL PARTNER THERE TOO THE SPOKESWOMAN SAYS THE COMPANY ALSO IS PROMOTING BOBOLI AS A BASE FOR DISHES OTHER THAN THE TRADITIONAL PEPPERONI PIZZA TO THAT END KRAFT IS DISTRIBUTING RECIPES AND EXPLORING TIEINS WITH SUPPLIERS OF DIFFERENT TOPPINGS INCLUDING PINEAPPLE THAT MAY BE MORE THAN PIE IN THE SKY WE'RE SEEING A LOT MORE PIZZA WITH MIXEDUP ETHNIC BACKGROUNDS SAYS LINDA SMITHSON OF FOODWATCH A MINNEAPOLIS FIRM THAT TRACKS PUBLISHED RECIPES GREEKSTYLE AND MEXICAN BLACKBEAN PIZZAS ARE POPULAR SHE SAYS AS ARE VEGETARIAN ENTRIES SOME RECIPES SUBSTITUTE PESTO SUNDRIED TOMATOES OR EVEN SALSA FOR THE TRADITIONAL RED PIZZA SAUCE SHE SAYS AND CHICKEN IS A COMMON TOPPER REGARDLESS OF THE HUNGER FOR HOMEPREPARED PIES DOMINO'S AND PIZZA HUT NEEDN'T WORRY JUST YET THAT'S BECAUSE THE OVERALL PIZZA MARKET ITSELF HAS BEEN GETTING LARGER SAYS HARRY BALZER VICE PRESIDENT OF NPD GROUP A CHICAGO TRACKER OF FOODCONSUMPTION PATTERNS EVERY TWO WEEKS NPD REPORTS 50 OF AMERICANS BITE INTO A PIZZA UP FROM 31 IN 1984 9306290074 930629 MONDAY'S MARKETS STOCKS RALLY AS INTEREST RATES FALL TREASURY'S LONG BOND POSTS LOWEST YIELD 667 IN 16 YEARS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES RALLIED AS LONGTERM INTEREST RATES HIT THEIR LOWEST LEVEL IN 16 YEARS THE DOLLAR WAS MIXED THE DOW JONES INDUSTRIAL AVERAGE SURGED 3931 POINTS TO 353020 STANDARD & POOR'S 500STOCK INDEX GAINED 425 TO 45185 AND THE NASDAQ COMPOSITE INDEX CLIMBED 802 TO 70283 ANALYSTS SAID THE STOCK MARKET'S ADVANCE WAS FUELED BY THE SINKING YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND WHICH FELL TO 667 ITS LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 A ROBUST RALLY AMONG ECONOMICALLY SENSITIVE TRANSPORTATION STOCKS CONFIRMED THE OUTLOOK FOR THE ECONOMY ANALYSTS SAID THE DOW JONES TRANSPORATION AVERAGE JUMPED 2353 TO 153311 HUGH JOHNSON CHIEF INVESTMENT OFFICER AT FIRST ALBANY SAID HE EXPECTS THIS WEEK'S ECONOMIC REPORTS TO UNDERSCORE THE TREND IN THE RECOVERY AMONG THE KEY DATA FOR JUNE TO BE RELEASED THIS WEEK ARE EMPLOYMENT FIGURES THE CONSUMER CONFIDENCE INDEX AND THE PURCHASING MANAGERS' SURVEY OF THE MANUFACTURING SECTOR IT LOOKS LIKE WE'RE HEADED TOWARD A GOOD COMBINATIONA RISE IN CONFIDENCE A RISE IN MANUFACTURING AND A RISE IN EMPLOYMENT MR JOHNSON SAID IT ALL SUGGESTS THE ECONOMY IN JUNE WAS BETTER THAN IN MAY MR JOHNSON ADDED THAT ALTHOUGH THE EXPECTED POSITIVE NEWS ON THE ECONOMY WILL SET THE TONE FOR THE STOCK MARKET IT WON'T NECESSARILY DETERMINE THE DIRECTION OF PRICES IN THE LONGER TERM INVESTORS ARE STILL ANXIOUS TO SEE AN OVERALL IMPROVEMENT IN CORPORATE PROFITS FOR THE SECOND QUARTER WHICH ENDS TOMORROW THE DIRECTION OF THE STOCK MARKET WILL BE SET IN THE NEXT THREE WEEKS WHEN WE SEE THE EARNINGS NUMBERS HE SAID IN THE BOND MARKET PRICES GAINED STRENGTH FROM A PERCEPTION THAT PRESIDENT CLINTON IS REPAIRING HIS BATTERED IMAGE SAID JAMES M SNYDER DIRECTOR OF FIXEDINCOME MANAGEMENT AT NORTHERN TRUST CO IN CHICAGO VOLATILITY IN THE BOND MARKET IS STARTING TO DECLINE MR SNYDER SAID THAT'S DIRECTLY RELATED TO THE FACT THAT CLINTON HAS PUT HIMSELF ON MORE SOLID GROUND MR SNYDER NOTED THAT AS LONGTERM RATES SINK THE GAP BETWEEN THOSE RATES AND SHORTER RATES IS NARROWING PART OF THE REASON FOR THE NARROWING IS THAT SHORTTERM RATES ARE CREEPING HIGHER AS BANKS BEGIN TO EXTEND MORE LOANS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 112 TO 10686 IN MAJOR MARKET ACTION STOCK PRICES SOARED VOLUME TOTALED 2404 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1375 ISSUES ROSE AND 586 FELL BOND PRICES CLIMBED THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED NEARLY 1/2 POINT OR 5 FOR EACH 1000 FACE AMOUNT THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16960 MARKS AND 10625 YEN COMPARED WITH 17055 MARKS AND 10620 YEN FRIDAY 9306290073 930629 LEISURE & ARTS ON SPORTS NAMES TO WATCH FOR IN 1996 AND BEYOND BY FREDERICK C KLEIN SPOKANE WASH PITY THE POOR BASEBALL SCOUT HE HAS TO LOOK AT TEENAGE PLAYERS AND FIGURE OUT HOW THEY'LL PERFORM SEVERAL YEARS HENCE AGAINST COMPETITION THAT'LL BE FAR SUPERIOR TO WHAT HE CAN WATCH THEM FACE THE TRACKANDFIELD SCOUT HAS THINGS EASIER ATHLETES IN THAT SPORT COMPETE MORE AGAINST STOPWATCH OR MEASURING TAPE THAN ONE ANOTHER SO MANY TIMES ALL HE NEEDS DO IS GLANCE AT THE NUMBERS TO DETERMINE HOW A KID STACKS UP THUS IT TAKES NO GREAT INTUITION TO PREDICT A BRIGHT FUTURE FOR LAWRENCE JOHNSON A COUPLE OF WEEKENDS AGO AT A MEET IN TENNESSEE THIS STRONGLY BUILT 19YEAROLD FROM CHESAPEAKE VA POLEVAULTED 18 FEET 8 1/2 INCHES AND SET A NATIONAL RECORD FOR ATHLETES UNDER AGE 20 THE EFFORT WOULD HAVE PLACED HIM FIFTH IN THE LAST OLYMPIC GAMES LAST SATURDAY AT THE US JUNIOR NATIONALS HERE JOHNSON CLEARED 181 TO SET A MEET MARK BUT AFTER ONE MISS AT 185 DECIDED IT WOULD BE FOOLHARDY TO BUCK THE PREVAILING HEADWIND AND PASSED ON HIS LAST TWO ATTEMPTS LEAVING AN ASSAULT ON THE WORLD JUNIOR RECORD OF 191/2 HELD BY A RUSSIAN FOR ANOTHER DAY IT SHOULD HAPPEN I'VE GOT THE REST OF THE SUMMER TO DO IT SAID THE UNIVERSITY OF TENNESSEE SOPHOMORETOBE OF THAT MARK AND IF IT DOESN'T WELL JOHNSON ALREADY HAS PASSED A STANDARD HE VALUES ALMOST AS MUCH THE BEST SERGEI BUBKA DID AT MY AGE WAS 188 1/4 SO I CAN TELL MYSELF I'M AHEAD OF HIM HE SMILED OF THE UKRAINIAN WHO HAS DOMINATED THE EVENT FOR THE PAST DOZEN YEARS AND ACTS AS THOUGH HE'D LIKE TO DO IT FOR A DOZEN MORE THE OTHER YOUNG MEN AND WOMEN WHO STRUTTED THEIR STUFF AT SATURDAY AND SUNDAY'S UNDER20 JUNIOR NATIONALS WERE BEHIND JOHNSON'S DEVELOPMENTAL CLOCK BUT SOME OF THEM ALSO COULD LOOK FORWARD TO CLIMBING THE FUTURE'S MORE AUGUST VICTORY STANDS CALVIN AND ALVIN HARRISON SPRINGY 19YEAROLD TWINS FROM SALINAS CALIF FINISHED ONETHREE IN THE MEN'S 400METER RUN IN TIMES THAT WERE IMPRESSIVE EVEN FOR AN EVENT WHOSE LOWER PARAMETER IS UNDER CONSTANT ATTACK MARK AND SEAN MCGEHEARTY BEEFY 17YEAROLD TWINS FROM PROVIDENCE RI PLACED ONETWO IN THE HAMMER THROW FOR THE SECOND STRAIGHT YEAR AND MARK'S HEAVE OF 1925 WAS THE SECONDLONGEST BY AN AMERICAN HIGH SCHOOLER AMONG THE WOMEN 18YEAROLD TONYA WILLIAMS OF NORFOLK VA A SOPHTOBE AT THE UNIVERSITY OF ILLINOIS CAPTURED BOTH THE 100 AND 400METER HURDLES AND HER TIME OF 5715 SECONDS IN THE LATTER EVENT THE SEVENTHBEST US JUNIOR CLOCKING WAS ESPECIALLY REMARKABLE WHEN IT'S NOTED THAT THIS IS ONLY HER THIRD YEAR IN THE SPORT I DID OTHER THINGS BEFORE FIELD HOCKEY SOCCER BASKETBALL SHE SAID I JUST DO TRACK NOW BUT SOMETIMES IT'S AWFUL HARD TO KEEP OFF THE BASKETBALL COURTS WILLIAMS'S SENTIMENTS ABOUT BASKETBALL TOUCHED A SORE POINT IN TRACKANDFIELD CIRCLES THE SPORT LOW IN VISIBILITY IN NONOLYMPIC YEARS AND WITH A SMALL PROFESSIONAL COMPONENT FIGHTS A CONTINUAL AND OFTEN LOSING BATTLE WITH MORE GLAMOROUS RECREATIONS TWO OF THE NATION'S BRIGHTEST YOUNG T&FERS MARION JONES OF THOUSAND OAKS CALIF A 1992 OLYMPIAN AND NATIONAL JUNIOR RECORD HOLDER IN THE WOMEN'S 200 METERS AND STANFORD UNIVERSITY FRESHMAN JEFF BUCKEY A SHOT PUT AND DISCUS STAR SKIPPED THE MEET TO CONCENTRATE ON BASKETBALL AND FOOTBALL RESPECTIVELY OFFICIALS SAID OTHER OF T&F'S SHORTCOMINGS WERE ON DISPLAY DURING THE WEEKEND THE MEET'S SITE ON THE CAMPUS OF SPOKANE FALLS COMMUNITY COLLEGE SPORTED A SPIFFY LIGHTBLUE RUBBERIZED TRACK BUT HAD NO PROPER TIME CLOCK IN PUBLIC VIEW AND TIMES FOR RUNNING EVENTS MEAT AND POTATOES FOR THE SPORT'S AFICIONADOS WEREN'T ANNOUNCED UNTIL A HALFHOUR OR MORE AFTER A RACE'S COMPLETION MORE IMPORTANT WAS THE SLAPDASH FINANCING THAT KEPT AWAY MANY POTENTIAL COMPETITORS USA TRACK & FIELD THE SPORT'S GOVERNING BODY PAID THE EXPENSES OF SOME AN OFFICIAL SAID HE COULDN'T SAY HOW MANY BUT MOST HAD TO DEPEND ON THEIR COLLEGES SCHOOLS CLUBS PARENTS OR OWN RESOURCES TO GET TO A CITY THAT WAS FAR OFF FOR MANY EVERY COACH HERE HAS KIDS WHO COULD BENEFIT FROM BEING AT A MEET LIKE THIS BUT COULDN'T AFFORD TO SEND THEM SAID ONE COLLEGIATE ASSISTANT THE YOUNGSTERS WHO DID SHOW UP DID THEIR DARNEDEST THOUGH AND NONE MORE SO THAN THE HARRISON TWINS THESE LADS WHO CAN BE TOLD APART ONLY BY THEIR JEWELRY CALVIN WEARS MORE NECKLACES ALVIN MORE EARRINGS ALSO ARE RELATIVE NEWCOMERS TO THE SPORT HAVING BUT TWO FULL YEARS OF COMPETITION UNDER THEIR BELTS AND WHILE CALVIN'S EYEPOPPING TIME OF 4507 SECONDS IN THE 400 WAS THE SECONDFASTEST BY A US HIGH SCHOOLER AND BEAT ALVIN'S BY MORE THAN A SECOND THEIR COACH AT NORTH SALINAS HIGH ED BARBER SAID HE DIDN'T KNOW WHICH WOULD TURN OUT BETTER ALVIN SPENT THE SEASON RUNNING MOSTLY 100S AND 200S TO HELP THE TEAM HE NOTED I THINK HIS DAY WILL COME TOO THE MCGEHEARTYS WERE LURED AWAY FROM FOOTBALL BY THE PRESENCE NEAR THEIR HOME OF A RARE HAMMERPRACTICE FACILITY AND THE PERSUASIVENESS OF THEIR HIGHSCHOOL COACH HE CONVINCED OUR DAD THAT WE COULD GET A COLLEGE SCHOLARSHIP IN TRACK WITHOUT THE STRESS OF FOOTBALL AND DAD CONVINCED US SAID MARK WHO WITH BROTHER SEAN IS BOSTON COLLEGEBOUND HE ADDED THE FACT THAT DAD WRECKED A KNEE PLAYING FOOTBALL YEARS AGO DIDN'T HURT MORE NAMES TO FILE AWAY FOR FUTURE REFERENCE ARE AMY ACUFF SUZY POWELL AND BECKI WELLS ACUFF OF CORPUS CRISTI TEXAS 17 AND A LEGGY 6FOOT2 WON THE WOMEN'S HIGH JUMP AT A MODEST 61 1/2 BUT OBSERVERS SAY HER TECHNIQUE IS ADVANCED FOR HER AGE AND SHE SHOULD SOAR WITH MATURITY POWELL OF MODESTO CALIF ALSO 17 SET A MEET RECORD OF 1808 IN THE DISCUS AND IS JUST A JUNIOR IN HIGH SCHOOL WELLS 18 FROM DICKINSON ND AND HEADED FOR THE UNIVERSITY OF ALABAMA WON THE WOMEN'S 1500 METERS HANDILY AND SAYS ONE COACH IS IMPROVING BY THE DAY AND IF THEY ALL DON'T BLOSSOM QUICKLY HAVE PATIENCE I SHOULD HAVE THREE SHOTS AT THE OLYMPICS 1996 2000 AND 2004 SAYS THE SKINNY PONYTAILED WELLS I'LL BE JUST 29 YEARS OLD IN 2004 YOU KNOW THAT'S WHEN DISTANCE RUNNERS HIT THEIR PRIME 9306290072 930629 RAWSTEEL PRODUCTION FELL 09 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 09 LAST WEEK TO 1823000 TONS FROM 1840000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 12 FROM THE 1801000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 861 OF ITS CAPABILITY LAST WEEK COMPARED WITH 869 THE PREVIOUS WEEK AND 836 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9306290071 930629 NIELSEN IRI SHIFT MANAGEMENT CHICAGO THE NATION'S TWO MAJOR MARKETING RESEARCH RIVALS ANNOUNCED TOP MANAGEMENT CHANGES YESTERDAY AC NIELSEN CO SAID GEORGE GARRICK 40 YEARS OLD PRESIDENT OF INFORMATION RESOURCES INC'S LONDONBASED EUROPEAN INFORMATION SERVICES OPERATION WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF NIELSEN MARKETING RESEARCH USA A UNIT OF DUN & BRADSTREET CORP HE SUCCEEDS JOHN H COSTELLO WHO RESIGNED IN MARCH WITHIN HOURS INFORMATION RESOURCES ANNOUNCED A NEW PRESIDENT AND CHIEF OPERATING OFFICER MAGID ABRAHAM 35 FORMERLY GROUP PRESIDENT INFORMATION SERVICES GROUP DR ABRAHAM WHO ALSO WAS ELECTED TO THE BOARD YESTERDAY SUCCEEDS JAMES G ANDRESS AS PRESIDENT MR ANDRESS 54 BECOMES ONE OF TWO VICE CHAIRMEN AND REMAINS COCHIEF EXECUTIVE OFFICER OF THE CONCERN 9306290070 930629 HEARD ON THE STREET SHORTSELLERS TAKE IT ON THE CHIN AGAIN BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET'S SHORTSELLERS ARE HAVING YET ANOTHER MISERABLE YEAR THE PROBLEM THE MARKET'S OVERVALUED STOCKS JUST WON'T GO DOWN AS THEY SUPPOSEDLY SHOULD THESE PROFESSIONAL BEARS INSIST THEIR TIME IS COMING IN THE SECOND HALF OF 1993 OR PERHAPS 1994 BUT MEANWHILE SOME SHORTS ARE REDUCING THE SIZE OF THEIR BETS ONE OF THE BIGGEST AND BESTKNOWN SHORTSELLERS JAMES CHANOS OF KYNIKOS ASSOCIATES IS DOWN ABOUT 15 SO FAR THIS YEAR AFTER GOING THROUGH A BRUTAL MAY ACCORDING TO A LETTER JUST SENT TO INVESTORS IN HIS FLAGSHIP URSUS PARTNERS MR CHANOS HAD ABOUT 400 MILLION UNDER MANAGEMENT AS OF LAST YEAR MEANWHILE THE FESHBACH BROTHERS OF CALIFORNIA WHO HAD A BRUTAL 1991 AND A MEDIOCRE 1992 ARE UP ONLY SLIGHTLY IN 1993 ACCORDING TO TRADERS EARLIER THIS YEAR THE FESHBACHS BEGAN EVEN BUYING SOME STOCKS LIKE REGULAR INVESTORS I CAN'T REMEMBER ANY 2 1/2YEAR STRETCH THIS BAD SAYS SHORTSELLER MICHAEL MURPHY EDITOR OF OVERPRICED STOCK SERVICE NEWSLETTER IN HALF MOON BAY CALIF MR MURPHY WHO SAYS HE IS UP NEARLY 6 THROUGH MIDJUNE ASSERTS THAT MORE SHORTSELLERS ARE TRIMMING THEIR SAILS THESE DAYS AND COVERING POSITIONS THAT DON'T WORK OUT SHORTSELLERS MAKE BETS AGAINST THE MARKET BY BORROWING STOCK AND SELLING IT HOPING THE STOCK PLUMMETS BEFORE THEY BUY BACK SHARES TO COVER THEIR BET STOCK AND BOND TRADER MICHAEL STEINHARDT HAS WATCHED IN HORROR AS HIS ROUGHLY 1 BILLION IN SHORTSELLING BETS AGAINST SUCH HIGHFLIERS AS CRACKER BARREL OLD COUNTRY STORE HAVE FAILED TO PLUNGE AS ENVISIONED ACCORDING TO TRADERS HE HAS COVEREDOR CLOSED OUTABOUT HALF OF HIS BEARISH BETS IN RECENT WEEKS MANY AT LOSSES MR STEINHARDT DECLINED TO COMMENT THERE HAVE BEEN SCATTERED SUCCESSES FOR THE SHORTS SUCH AS PRESCIENT BETS AGAINST BELEAGUERED US SURGICAL MEYER BERMAN OF GREAT NECK NY A SHORT WHO WAS PROFILED ON THIS NEWSPAPER'S FRONT PAGE WAY BACK IN 1970SHORTED US SURGICAL AT 108 IN A BET THAT IS SAID TO HAVE GROWN TO MORE THAN TWO MILLION SHARES AND HE WATCHED HAPPILY AS THE STOCK HAS DROPPED TO 27 3/8 MR BERMAN WON'T COMMENT ABOUT IT BUT THERE HAVE BEEN JUST AS MANY DEFEATS FOR THE SHORTS OVERALL SHORTSELLERS HAVE POSTED AN ESTIMATED 3 TO 4 YEARTODATE GAIN THROUGH FRIDAY ACCORDING TO THE ROCKBRIDGE SHORT SELLERS INDEX MOST PEOPLE ARE DISAPPOINTED SAYS MICHAEL R LONG OF ROCKBRIDGE PARTNERS IN CHARLOTTE NC WHO COMPILES THE INDEX USING THE PERFORMANCE OF 20 SHORTSELLERS THE POOR PERFORMANCE CONTINUES A TREND AFTER A BAD 1991 THE SHORTS THOUGHT THEY WERE HAVING A GOOD YEAR IN 1992 BUT THE GAINS EVAPORATED BY THE YEAR'S END AMID A LATEYEAR RALLY IN THE NASDAQ OVERTHECOUNTER MARKET NOW WITH THE FIRST SIX MONTHS OF THIS YEAR SO MEDIOCRE THE SHORTS ARE DEPRESSED MR MURPHY SAYS HOWEVER THAT THE RISE IN MOMENTUM INVESTING IN WHICH BIG INSTITUTIONAL INVESTORS THROW MILLIONS OF DOLLARS AT TRENDY STOCKS HAS CHANGED THE SHORTS' GAME IN THE PAST YOU COULD SHORT A STOCK AT 40 TIMES EARNINGS AND IT MIGHT GO TO 50 TIMES BEFORE IT BREAKS NOW IT'LL GO TO 100 SO SHORTSELLERS HAVE TO KNOW WHEN TO CUT THEIR LOSSES HE SAYS OVERPRICED STOCK SERVICE'S TWO SHORT PICKS ARE STOCKS THAT HAVE SNUBBED THEIR NOSES AT THE SHORTS ALL YEAR SNAPPLE BEVERAGE THE ICEDTEA STOCK THAT ZOOMED TO MORE THAN 250 TIMES EARNINGS AND GOURMETCOFFEE CHAIN STARBUCKS SNAPPLE AND SOME OF THESE OTHERS ARE STARTING TO BREAK INSISTS MR MURPHY HE SAYS THAT WHEN THE STOCK MARKET STARTS DOWN THESE ISSUES AND THE TRENDY STEAKHOUSE SHARES ARE GOING TO BREAK IN A BIG BIG WAY BECAUSE THEY'RE TOTALLY OWNED BY MOMENTUM PLAYERS WHILE THE BIG GUYS HAVE STRUGGLED SOME SMALLER MONEY MANAGERS HAVE HAD SHORTSELLING SUCCESS THIS YEAR ONE OF THEM IS DAVID HINES OF HINES MANAGEMENT IN CONWAY ARK WHO MANAGES 20 MILLION IT'S BEEN A TOUGH COUPLE OF YEARS FOR THE SHORTS HE SAYS BUT THE SHORT POSITIONS THAT HAVE WORKED OUT ARE THOSE WITH EVENTS SUCH AS EARNINGS DISAPPOINTMENTS OR EYEGRABBING NEWS FOR EXAMPLE HE MADE MONEY ON MCAFEE ASSOCIATES THE DEVELOPER OF ANTIVIRUS SOFTWARE WHOSE STOCK PLUNGED AROUND THE TURN OF THE YEAR ON FEARS THAT ITS PRODUCT WAS DAMAGING COMPUTERS MCAFEE SAID THE PROBLEM WAS MINOR THE STOCK IS NOW AT 7 UP FROM A 52WEEK LOW OF 4 3/4 BUT WAY BELOW THE PEAK OF 23 1/4 REACHED IN THE WAKE OF THE INITIAL PUBLIC OFFERING IN OCTOBER CURRENT FAVORITES OF THE SHORTS BESIDES SNAPPLE AND THE RESTAURANT STOCKS ARE GAMBLING AND RIVERBOAT STOCKS LIKE CASINO MAGIC PRESIDENT RIVERBOAT CASINOS AND ARGOSY GAMING EVEN AFTER RECENT DECLINES THESE STOCKS STILL HAVE HIGH VALUATIONS AND ARE TRADING WELL ABOVE THE PRICES AT WHICH SOME SHORTS PLACED THEIR BETS IT'S JUST THAT THE VALUATION SHORTS' HAVEN'T WORKED YET AND I'M SURE THEY WILL SAYS MR HINES WILL LYONS WHO PUBLISHES THE SHORT ON VALUE NEWSLETTER IN ATLANTA SAYS THE BEST STOCKS TO SHORT REMAIN THE CASINOS EVEN MGM GRAND THERE'S AN INCREDIBLE AMOUNT OF SUPPLY GOING ON AND NO DEMAND TO SUPPORT IT SAYS MR LYONS NEARLY A THIRD OF HIS NEWSLETTER'S 30 SHORTSELLING RECOMMENDATIONS MADE LAST MONTH WERE GAMBLINGRELATED ALSO MR LYONS BUCKS WALL STREET'S CONSENSUS BY RECOMMENDING A BET AGAINST AMERICAN POWER CONVERSION WHICH HE CALLS A GREAT COMPANY BUT AN OVERPRICED STOCK THE COMPANY MAKES UNINTERRUPTIBLE POWERSUPPLY PRODUCTS FOR COMPUTERS THE BIG SHORTSELLERS MAY BE TAKING SMALLER POSITIONS THIS SUMMER THAN USUAL BUT THEY HAVEN'T SUFFERED DEFECTIONS FROM INVESTORS LARGE ENOUGH TO PUT THEM OUT OF BUSINESS LIKE BULLISH VALUE INVESTORS PEOPLE WHO SHORT STOCKS INSIST THAT THE PRACTICE WILL PAY OFF EVENTUALLY MR CHANOS OF KYNIKOS WHICH COMES FROM THE GREEK FOR CYNIC THANKED HIS INVESTORS FOR THEIR CONTINUED SUPPORT AND FORBEARANCE IN HIS RECENT LETTER HE IS SAID TO BE FLUMMOXED THAT TRENDY STEAKHOUSE AND VIDEOGAME STOCKS CONTINUE TO TRADE AT HIGH VALUATIONS WHILE LARGE WELLKNOWN COMPANIES LIKE WALMART STORES ARE SAVAGED BY THE MARKETPLACE ON THE SMALLEST OF DISAPPOINTMENTS MR CHANOS SAYS URSUS PARTNERS IS ABOUT 86 NET SHORT SUGGESTING HE HASN'T THROWN IN THE TOWEL AND STARTED BETTING SOLELY WITH THE BULLS BUT HE HAS COVERED VIRTUALLY ALL HIS REMAINING COMMERCIAL REALESTATE SHORTS INCLUDING SOME PUT ON AS FAR BACK AS 1986 THE LETTER SAYS WHERE HAS HE BEEN HUNTING FOR STOCKS TO BET AGAINST THERE'S A CLUE IN THE LETTER IT PREDICTS THAT THE CREDITCARD INDUSTRY IS ON THE VERGE OF A MAJOR SHAKEOUT THAT COULD BRING ACCELERATING DECLINES IN CREDITCARD INTEREST RATES AND PLUNGING PROFITS FOR COMPANIES DEPENDENT ON THE CREDITCARD BUSINESS THE CARD COMPANIES' PRICE WAR HAS BEEN MASKED UP TO NOW BY A ONCEINAGENERATION DROP IN SHORTTERM INTEREST RATES SAYS MR CHANOS'S LETTER HE DOESN'T URGE SHORTSELLING ANY PARTICULAR COMPANY BUT MENTIONS A NUMBER OF PURE PLAY CREDITCARD STOCKS SUCH AS MBNA FIRST USA AND ADVANTA WHILE THESE STOCKS ARE PRICED FOR RAPID GROWTH TO CONTINUE THE LETTER SAYS THE INDUSTRY NOW FACES AN INEXORABLE DECREASE IN PROFIT MARGINS AND RETURNS ON EQUITY HE CONCLUDES THE LETTER WITH A PREDICTION RECORD VALUATIONS A HOT NEW PUBLIC OFFERINGS MARKET HEAVY INSIDER SELLING AND MASSIVE PUBLIC BUYING KEEP US OPTIMISTIC THAT OUR TIME WILL COME 9306290069 930629 ON AND OFF THE SCREEN CHINA'S BIG STAR PLAYS MAO TSETUNG TO A T AS THE LATE CHAIRMAN'S DOUBLE HE COULD PASS FOR HIS SON STIRRING SOME SPECULATION BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL YANAN CHINA TALK ABOUT BEING TYPECAST GU YUE ONE OF CHINA'S BESTKNOWN ACTORS HAS STARRED IN 34 MOVIES AND TV SHOWS IN WHICH HE PLAYS MAO TSETUNG IT HAS BEEN A BLESSING AND A CURSE LIKE MANY TYPECAST ACTORS MR GU HAS SEEN HIS ONSCREEN AND OFFSCREEN PERSONAS MERGE AS THE CELLULOID REINCARNATION OF THE LATE COMMUNIST LEADER WHO DIED IN 1976 MR GU FINDS HIMSELF TRAPPED IN THE MAO MYTH AND THE OLD PARTY LINE MAO TSETUNG THOUGHT IS STILL CHINA'S OFFICIAL IDEOLOGY AND THE YANAN SPIRIT OF SACRIFICE AND SIMPLE LIVING IS THE PROFESSED IDEAL YET DENG XIAOPING'S SOCIALIST MARKET ECONOMY HAS TURNED SOCIETY UPSIDE DOWN SO CHINA'S MANTRA NOW IS GETRICHQUICK FOR EVERYONE THAT IS EXCEPT MR GU HE IS THE PROPERTY OF THE ARMY'S AUGUST FIRST FILM STUDIO WHICH PAYS HIM 45 A MONTH AND A 1000 TO 2000 BONUS IF ANOTHER STUDIO BORROWS HIM TO SHOOT A MOVIE WHILE OTHER CHINESE FILM STARS EARN MILLIONS OF DOLLARS FROM SIDE BUSINESSES MR GU MUST TURN DOWN LUCRATIVE PRODUCT ENDORSEMENTS BECAUSE MAO CAN'T BE A HUCKSTER THAT HURTS BECAUSE MAO'S IMAGE HAS SUDDENLY BECOME A HOT COMMERCIAL PROPERTY AS MEMORIES OF MAO'S MURDEROUS POLITICAL PURGES FADE AND HIS 100TH BIRTHDAY ON DEC 26 NEARS HIS FACE IS POPPING UP ON EVERYTHING FROM CIGARETTE LIGHTERS TO UMBRELLAS MR GU HAS RECENTLY BEEN FILMING ON LOCATION HERE IN YANAN HE IS STAYING IN A RAMSHACKLE 2ANIGHT HOTEL WHERE THE AROMA OF OVERFLOWING TOILETS HANGS IN THE HOT AFTERNOON AIR HE SUCKS ON A CIGARETTE AND SQUINTS OUT THE WINDOW AT HILLSIDE CAVES IN THE PARCHED MOUNTAINS OF SHAANXI PROVINCE IT WAS HERE 50 YEARS AGO THAT MAO AND HIS COMRADES LIVED IN THE MUD CAVES AND LAUNCHED CHINA'S COMMUNIST REVOLUTION IF THERE IS AN OPPORTUNITY AND I GET THE SUPPORT OF SOME FOREIGN BUSINESSMAN YOU KNOW SO WE CAN USE MY FAME TO FORM A JOINT VENTURE TO DO SOMETHING TO FORM SOME COMPANY OF COURSE I AM WILLING HE SAYS INDEED MR GU HAS BEEN TALKING TO A HONG KONG FIRM THAT WANTS TO BUILD A COMMUNIST REVOLUTION THEME PARK BUT ALAS HE DOUBTS THE ARMY WILL LET THEM USE HIS NAME SO WHEN HE ISN'T FILMING MAO MOVIES IN IMPOVERISHED BACKWATERS MR GU GIVES GRATIS PERFORMANCES AT PARTY LEADERSHIP BANQUETS RECITING MAO'S SPEECHES WITH SO MUCH VERVE THAT ELDER CADRES BREAK DOWN IN TEARS PEOPLE HAVE DIFFERENT EXPECTATIONS FOR ME THAN FOR OTHER ACTORS SAYS MR GU AN AMIABLE 53YEAROLD THEY WANT ME TO BE LIKE MAO TSETUNG IN ALL ASPECTS MR GU'S MAO CAREER BEGAN IN 1979 WHEN PARTY AUTHORITIES LAUNCHED A NATIONWIDE SEARCH FOR AN OFFICIAL MAO ACTOR AT THE TIME MR GU WAS A MINOR ARMY OFFICER IN SOUTHWEST CHINA HE WAS CHOSEN NOT JUST FOR HIS RESEMBLANCE TO MAO BUT BECAUSE HE WAS A PARTY MEMBER WITH UNASSAILABLE POLITICAL CREDENTIALS MR GU AN ORPHAN FOLLOWED RED ARMY UNITS ACROSS THE COUNTRYSIDE UNTIL THEY LET HIM JOIN AN ARMY DANCE TROOP AT AGE 10 MR GU'S INITIAL ROLES WERE CAMEO APPEARANCES CHINA HAD YET TO SORT OUT MAO'S LEGACY SO IT WAS CONSIDERED TOO POLITICALLY SENSITIVE TO HAVE MAO AS A MAIN CHARACTER BUT IN 1981 THE PARTY PRONOUNCED THAT MAO WAS 70 GOOD AND 30 BAD THIS CLEARED THE WAY FOR MAO TO BE THE LEAD CHARACTER IN MOVIES GLORIFYING THE COMMUNIST STRUGGLES IN THE 1930S AND '40S PARTY OFFICIALS BELIEVED THE MOVIES WERE NEEDED TO COUNTER BOURGEOIS IDEAS SPROUTING FROM CHINA'S ECONOMIC REFORMS BECAUSE MR GU IS AN ORPHAN THERE IS MUCH SPECULATION THAT HE IS MAO'S ILLEGITIMATE SON MAO HAD AT LEAST 10 CHILDREN BY THREE WIVES DURING HIS WARTIME WANDERINGS THE CHAIRMAN WAS KNOWN FOR SOWING MORE THAN THE SEEDS OF REVOLUTION SOME BELIEVE THAT MR GU IS MAO ANLONG A SON OF MAO WHO WAS LOST IN HUBEI PROVINCE IN 1930 WHEN HIS MOTHER WAS CAPTURED AND EXECUTED BY CHIANG KAISHEK'S NATIONALISTS MR GU WHO WAS RAISED IN AN ORPHANAGE AND KNOWS NOTHING ABOUT HIS PARENTS SAYS THIS IS WRONG BECAUSE ANLONG WAS BORN IN 1927 AND THE ORPHANAGE TOLD HIM THAT HE WAS BORN IN 1939 TEARS FOR MR GU RELATED OR NOT MAO'S FAMILY TREATS MR GU LIKE A MEMBER OF THE CLAN EVERY YEAR ON THE ANNIVERSARY OF MAO'S DEATH MR GU GOES TO THE HOME OF MAO'S DAUGHTER LI MIN TO VISIT WITH MAO'S RELATIVES FORMER BODYGUARDS AND NURSES SOMETIMES THEY HUG HIM AND CRY FOR THE PAST FEW YEARS MR GU'S LIFE HAS BEEN A BLUR HE HAS HAD TO GAIN AND LOSE AS MUCH AS 45 POUNDS TO PORTRAY MAO FROM AGES 28 TO 83 A NONSMOKER BEFORE HE BECAME MAO MR GU NOW CHAINSMOKES HE LIVES OUT OF A SUITCASE AND RARELY SEES HIS ACTRESS WIFE AND 16YEAROLD SON HERE IN YANAN MR GU IS SHOOTING A MOVIE CALLED CHONGQING NEGOTIATIONS OF THE FILM'S 99 ACTORS 96 ARE LOOKALIKES PLAYING HISTORICAL FIGURES IT IS ONE OF THREE FILMS THAT MR GU IS WORKING ON NOW HE SAYS HE MUST WORK THIS HARD BECAUSE THERE ARE DOZENS OF MAO LOOKALIKES WHO COVET HIS ROLE AS CHINA'S LEADING MAO ACTOR THE FATIGUE SHOWS HE ENDURES MORE THAN 10 TAKES TO FILM MAO AND GENERAL ZHU DE DISCUSSING COMING NEGOTIATIONS WITH CHIANG KAISHEK EVEN THOUGH THE DIALOGUE WILL LATER BE DUBBED DIRECTOR LI QIANKUAN REPEATEDLY GUIDES MR GU THROUGH SIMPLE HAND AND FOOT MOVEMENTS WE ALWAYS HAVE TO REMIND HIM WHAT TO DO SAYS MR LI OFF THE SET MR GU NEEDS NO COACHING WHEN HE IS LATER SURROUNDED BY CHINESE PEASANTS WHO DISCOVER HIM EMERGING FROM A BATHROOM AS THEY SCRAMBLE AFTER HIM YELLING CHAIRMAN CHAIRMAN A PICTURE PLEASE JUST ONE MR GU'S FACE BRIGHTENS POSING FOR PHOTOS HE SMILES BENIGNLY AND SLOWLY NODS HIS HEAD LIKE A CARICATURE OF MAO FROM A 1930S NEWSREEL SUCH ADULATION FORCES MR GU TO SPEND MUCH OF HIS TIME ALONE WHEN HE LEAVES HIS BEIJING HOME HE WEARS SUNGLASSES AND LARGE HATS AS A DISGUISE STILL HE IS OFTEN RECOGNIZED AND MOBBED HIS SANCTUARY IS HIS LIVING ROOM IT IS CRAMMED WITH MAO BOOKS MEMORABILIA PORTRAITS AND LARGE MIRRORS WHEN MR GU ISN'T READING MAO SPEECHES OR PRACTICING MAO'S STYLE OF CALLIGRAPHY AND POETRY HE PLAYS CHINESE CHESS WITH OTHER POLITICAL CHARACTER ACTORS I'M CLOSER FRIENDS WITH CHIANG KAISHEK THAN WITH DENG XIAOPING MR GU SAYS OF HIS CHESS MATES MR GU HOPES TO CAPITALIZE ON HIS FAME BEFORE HE IS TOO OLD BUT HE HAS BEEN UNABLE TO FIND A WAY TO DO SO THAT IS POLITICALLY CORRECT IN CHINA BECAUSE OF THE CHARACTER I PLAY I HAVE SUFFERED GREAT FINANCIAL LOSSES MR GU SAYS SADLY NOW I HAVE ONLY FAME NOTHING ELSE 9306290068 930629 LEISURE & ARTS THE GALLERY A GREAT VICTORIAN CRITIC'S THEORY OF ART BY ROGER KIMBALL INDIANAPOLIS IT ISN'T OFTEN THESE DAYS THAT ONE GETS THE CHANCE TO SEE AN EXHIBITION OF ARTWORKS SELECTED BY THE GREAT VICTORIAN CRITIC ARTIST AND MORALIST JOHN RUSKIN 18191900 BUT THE ART OF SEEING JOHN RUSKIN AND THE VICTORIAN EYE WHICH JUST OPENED AT THE INDIANAPOLIS MUSEUM OF ART COMES CLOSE TO PROVIDING JUST THAT ORGANIZED BY THE PHOENIX ART MUSEUM WHERE IT WAS ON VIEW EARLIER THIS YEAR THE SHOW BRINGS TOGETHER NEARLY 200 DRAWINGS WATERCOLORS AND PAINTINGS BY THE VICTORIAN ARTISTS WHO BECAME RUSKIN'S CRITICAL TOUCHSTONES THE EXHIBITION INCLUDES WORKS BY JMW TURNER JAMES ABBOTT MCNEIL WHISTLER DANTE GABRIEL ROSSETTI EDWARD BURNEJONES NUMEROUS LESSER NAMES AS WELL AS 50ODD DRAWINGS AND WATERCOLORS BY RUSKIN HIMSELF BY DISPLAYING BRIEF SELECTIONS FROM RUSKIN'S VOLUMINOUS CRITICAL WRITINGS ALONGSIDE THE WORKS THAT INSPIRED THEM THE CURATORS HAVE SOUGHT TO PROVIDE A GUIDED TOUR OF RUSKIN'S SENSIBILITY AND THEORY OF ART THE WORD THEORY REQUIRES SOME COMMENT NOWADAYS WHEN ACADEMIC CRITICS SPEAK OF THEORY THEY REALLY MEAN THEORIZING INTELLECTUAL SPECULATION UNANCHORED IN EMPIRICAL REALITY IN THIS SENSE THEORY IS MORE A SUBSTITUTE FOR EXPERIENCE THAN AN EXPLICATION OF IT DECONSTRUCTION IS THEORY PAR EXCELLENCE BUT RUSKIN UNDERSTOOD THEORY IN THE GREEK SENSE OF THEORIA A PERFECTED OR HEIGHTENED MODE OF EXPERIENCE WHOSE IDEAL IS A PURE UNCLOUDED BEHOLDING OF REALITY THEORY FOR RUSKIN WAS NOT AN ALTERNATIVE TO SEEING BUT THE MOST CONCENTRATED AND ATTENTIVE FORM OF SEEING POSSIBLE THIS IS WHY HE IMBUED THE ART OF SEEING WITH GREAT SPIRITUAL SIGNIFICANCE A PASSIONATE LOVE OF THE VISIBLE WORLD LED TO THE SANCTIFICATION OF THE ACT OF SEEING TO SEE THINGS CLEARLY HE WROTE IS POETRY PROPHECY AND RELIGION ALL IN ONE AS ROBERT HEWISON PUTS IT IN HIS ESSAY FOR THE EXHIBITION CATALOG RUSKIN BELIEVED THAT ACCURATE PERCEPTION LED TO IMAGINATIVE PENETRATION THE ART OF SEEING IS INTENDED TO BE AN HOMAGE TO RUSKIN'S APPLICATION OF THIS PRINCIPLE IT IS PERHAPS NOT SURPRISING THAT THE WORKS THAT COME CLOSEST TO REALIZING THIS IMPOSSIBLE IDEAL ARE RUSKIN'S OWN HE UNDERTOOK HIS DRAWINGS AND WATERCOLORS CHIEFLY TO PROVIDE HIMSELF AND HIS MANY STUDENTS AND FRIENDS WITH FAITHFUL TRANSCRIPTIONS OF VISUAL EXPERIENCES BUT AS THIS EXHIBITION REMINDS US WHAT HE PRODUCED ARE FAR MORE THAN PHOTOGRAPHIC REPORTS METICULOUS AND PAINSTAKING AS HIS DRAFTSMANSHIP TYPICALLY WAS HIS DRAWINGS ARE NEVERTHELESS HIGHLY CHARGED WITH EMOTION THE ACCURACY HE SOUGHT WAS AS MUCH A MATTER OF SPIRITUAL AS OPTICAL VERISIMILITUDE YOU DO NOT SEE WITH THE LENS OF THE EYE HE WROTE YOU SEE THROUGH THAT AND BY MEANS OF THAT BUT YOU SEE WITH THE SOUL OF THE EYE THE BEST OF RUSKIN'S DRAWINGS AND WATERCOLORS IN THIS EXHIBITION SOME OF HIS ARCHITECTURAL DETAILS HIS FASTIDIOUS STUDY OF A VELVET CRAB HIS LOVINGLY RENDERED DEPICTIONS OF LEAVES AND OTHER FOLIAGE SHOW HOW A PASSION FOR EXACTNESS CAN ITSELF BE A CATALYST FOR ARTISTIC ACHIEVEMENT AS IT HAPPENS RUSKIN DID NOT HOLD HIS OWN ARTISTIC GIFTS IN PARTICULARLY HIGH ESTEEM WRITING TO A FRIEND IN 1886 ABOUT HIS DRAWINGS HE CONCLUDED THEY ARE ALL SUCH MERE HINTS OF WHAT I WANT TO DO OR SYLLABLES OF WHAT I SAW THAT I NEVER THINK THEY COULD GIVE THE LEAST PLEASURE TO ANY ONE BUT MYSELF BUT THERE CAN BE LITTLE DOUBT THAT HIS OWN CONTRIBUTIONS ARE ONE OF THE TWO HIGH POINTS OF THE ART OF SEEING THE OTHER HIGH POINT IS RUSKIN'S BESTKNOWN CAUSE CELEBRE JMW TURNER WHO IS REPRESENTED HERE WITH 22 WORKS AS A YOUNG CRITIC RUSKIN BATTLED TIRELESSLY TO RETRIEVE TURNER'S REPUTATION IN THE FACE OF WIDESPREAD CRITICAL RIDICULE AND DISPARAGEMENT INDEED THE FIRST VOLUME OF ONE OF RUSKIN'S MOST FAMOUS BOOKS MODERN PAINTERS WAS UNDERTAKEN TO VINDICATE TURNER'S BESIEGED REPUTATION WRITING IN 1840 ABOUT TURNER'S ROCKETS AND BLUE LIGHTS CLOSE AT HAND TO WARN STEAMBOATS OF SHOAL WATER ONE CRITIC SUGGESTED THAT THE WORK HAD BEEN PRODUCED BY FIRING A BLUNDERBUSS FULL OF PIGMENT AT THE CANVAS FOR HIS PART RUSKIN THOUGHT TURNER THE GREATEST PAINTER ENGLAND HAD EVER PRODUCED THE IRONY IN RUSKIN'S CAREER IS THAT 20SOME YEARS LATER HE FOUND HIMSELF ON THE OPPOSITE SIDE OF A SIMILAR ARTISTIC CONTROVERSY REVIEWING AN EXHIBITION IN THE GROSVENOR GALLERY HE RESERVED SPECIAL CONTEMPT FOR WHISTLER'S 1875 CANVAS NOCTURNE IN BLACK AND GOLD THE FALLING ROCKET WHICH IS INCLUDED NEAR THE END OF THE ART OF SEEING A DARK IMPRESSIONISTIC PIECE OF MOOD MUSIC WHISTLER'S PAINTING REPRESENTED EVERYTHING RUSKIN HATED THE PRICE TAG PARTICULARLY OUTRAGED HIM HOW WAS IT HE DEMANDED IN HIS REVIEW THAT A COXCOMB COULD ASK TWO HUNDRED GUINEAS FOR FLINGING A POT OF PAINT IN THE PUBLIC'S FACE NOT ONE TO TAKE THINGS LYING DOWN WHISTLER SUED FOR LIBEL PERHAPS PARTLY BECAUSE RUSKIN REFUSED TO REPRESENT HIMSELF IN COURT WHISTLER WON THE SUIT THE DEFEAT WAS DEEPLY DEMORALIZING TO RUSKIN WHO LEFT HIS POSITION AS SLADE PROFESSOR OF ART AT OXFORD BECAUSE OF IT BUT WHISTLER'S TRIUMPH TURNED OUT TO BE PYRRHIC VICTORY HE WAS AWARDED A FARTHING IN DAMAGES AND WAS REQUIRED TO PAY THE LEGAL FEES A BURDEN THAT LED TO HIS BANKRUPTCY A FEW YEARS LATER WHISTLER DOUBTLESS HAS HIS VIRTUES AS AN ARTIST BUT ON THE WHOLE I WAS INCLINED TO AGREE WITH RUSKIN'S JUDGMENT OF NOCTURNE HE WAS ALSO RIGHT TO REJECT SUCH ONCEFAMOUS PAINTINGS AS THE PLAY SCENE IN HAMLET 1842 BY DANIEL MACLISE ENERGETICALLY AND ACTIVELY BAD AND SIR CHARLES EASTLAKE'S SACCHARINE EXERCISE IN PIETY THE SALUTATION TO THE AGED FRIAR 1840 EXAMPLES OF WHICH ARE HERE IN ABUNDANCE RUSKIN SEEMS LESS CONVINCING IN SOME OF HIS ENTHUSIASMS ESPECIALLY PROBLEMATIC WAS HIS ENTHUSIASM FOR THE PRERAPHAELITES THOUGH OFTEN TECHNICALLY SLICK THE ART OF THAT ARTISTICMYSTICALEROTIC MOVEMENT HAS NOT AGED WELL THE MEDIEVALIZING SENSUALITY OF ARTISTS LIKE ROSSETTI AND BURNEJONES HAS LONG SINCE BECOME A STAPLE OF THE NEW AGE GREETINGCARD INDUSTRY AND MOST OF IT IS DIFFICULT TO LOOK AT NOW WITHOUT A GIGGLE LIKEWISE THE RELIGIOUS KITSCH OF ARTISTS SUCH AS WILLIAM HOLMAN HUNT WHOSE PAINTINGS OF CHRIST SEEM RIGHT OUT OF THE CURIO SHOP BUT RUSKIN HAD A REAL SWEET TOOTH FOR THIS BRAND OF SENTIMENTALITY AS THIS EXHIBITION SHOWS IN EXCRUCIATING DETAIL RUSKIN FAMOUSLY UNDERRATED THE ACHIEVEMENTS OF RENAISSANCE ART AND PERHAPS HIS FONDNESS FOR THE PRERAPHAELITES HAD SOMETHING TO DO WITH HIS MISTAKEN BELIEF THAT THESE ARTISTS WERE RECOVERING AN ANTIQUE SENSIBILITY THAT PREDATED RAPHAEL PERHAPS HIS FONDNESS FOR WHAT THEY CLAIMED TO BE DOING BLINDED HIM TO THE AESTHETIC DEFECTS OF THEIR ART WHATEVER THE REASON THIS INFORMATIVE EXHIBITION SHOWS THAT THE ART OF SEEING IS A PERILOUS ENTERPRISE IN WHICH EVEN A GENIUS LIKE JOHN RUSKIN MUST OCCASIONALLY STUMBLE THE ART OF SEEING JOHN RUSKIN AND THE VICTORIAN EYE IS UP UNTIL AUG 29 IT IS ACCOMPANIED BY A CATALOG OF THE SAME TITLE PUBLISHED BY HARRY N ABRAMS 224 PAGES 3995 9306290067 930629 HEAD OF LARGEST PROISRAEL LOBBY QUITS UNDER PRESSURE IN FLAP OVER BOOK QUOTE BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THOMAS DINE EXECUTIVE DIRECTOR OF THE NATION'S MAJOR PROISRAEL LOBBYING GROUP RESIGNED UNDER PRESSURE OVER A QUOTE IN A NEW BOOK IN WHICH HE SPOKE DISPARAGINGLY ABOUT ULTRAORTHODOX JEWS SOME OF MR DINE'S SUPPORTERS SAID THOUGH THAT HE ALSO WAS BEING MADE THE SCAPEGOAT FOR A STRING OF EMBARRASSMENTS TURNABOUTS AND SETBACKS SUFFERED IN RECENT YEARS BY THE INFLUENTIAL LOBBYING GROUP THE AMERICAN ISRAEL PUBLIC AFFAIRS COMMITTEE OR AIPAC OTHERS FAMILIAR WITH THE SITUATION HOWEVER CONTENDED THAT THE QUOTE WAS ANOTHER EXAMPLE OF MR DINE'S TENDENCY TO SPOUT OFF OPINIONS IRRITATING MEMBERS OF AIPAC'S BOARD IN A LETTER TO STEVEN GROSSMAN AIPAC'S PRESIDENT MR DINE SAID THE QUOTE HAD BEEN TAKEN OUT OF CONTEXT BUT HE CALLED IT A SOURCE OF MUCH PAIN AND EMBARRASSMENT IN AN INTERVIEW MR GROSSMAN PRAISED MR DINE'S 13YEAR RECORD IN BUILDING THE ORGANIZATION BUT HE ADDED I THINK THERE CAME A TIME WHEN IT WAS TIME TO SEPARATE HIMSELF FROM THE ORGANIZATION THE CONCERN ABOUT THE WORDS IN THE BOOK WAS PALPABLE THE CONTROVERSY CAME TO LIGHT IN A SCATHING THREEPAGE LETTER TO AIPAC FROM RABBI MOSHE SHERER PRESIDENT OF AGUDATH ISRAEL OF AMERICA THE LEADING UMBRELLA GROUP OF ULTRAORTHODOX US JEWS THE LETTER CITES A QUOTE FROM PIETY & POWER THE WORLD OF JEWISH FUNDAMENTALISM IN WHICH MR DINE SAID I DON'T THINK MAINSTREAM JEWS FEEL VERY COMFORTABLE WITH THE ULTRAORTHODOX IT'S A CLASS THING I SUPPOSE THEIR IMAGE IS SMELLY RABBI SHERER CALLING MR DINE'S DESCRIPTION SHOCKING AND HEARTBREAKING SAID HIS ORGANIZATION MIGHT NO LONGER DEFER TO AIPAC ON MATTERS CONCERNING ISRAEL HE SAID HE MUST REEVALUATE HIS PERSPECTIVE WHEN THE MAIN SPOKESMAN FOR AIPAC DISPLAYS HIS ANTIORTHODOX PREJUDICE FOR ALL THE WORLD TO SEE MR DINE IN HIS LETTER OF RESIGNATION SAID THAT DURING THE INTERVIEW WHICH WAS CONDUCTED FOUR YEARS AGO HE WAS ASKED OFF THE RECORD ABOUT THE PERCEPTIONS HELD BY MAINSTREAM US JEWS OF THEIR ULTRAORTHODOX BRETHREN IN NO WAY DID I MEAN THOSE WORDS TO BE INTERPRETED AS MY BELIEFS MR DINE SAID THE INCIDENT IS THE LATEST IN A SERIES OF EMBARRASSMENTS FOR AIPAC FOLLOWING PRESIDENT CLINTON'S ELECTION DAVID STEINER THEN AIPAC'S PRESIDENT BOASTED DURING A TELEPHONE CONVERSATION WITH A DONOR THAT THE ORGANIZATION WOULD HAVE SIGNIFICANT INFLUENCE OVER MR CLINTON'S MAJOR CABINET APPOINTMENTS WHEN THE CONVERSATION WAS MADE PUBLIC MR STEINER WAS FORCED TO RESIGN EARLIER THIS YEAR HARVEY FRIEDMAN AN AIPAC VICE PRESIDENT BERATED AN ISRAELI OFFICIAL WHO WAS EXPLAINING ISRAEL'S PEACE POLICY COMPLAINING THAT ISRAEL WAS TOO WILLING TO GIVE AWAY TERRITORY AIPAC APOLOGIZED TO ISRAEL'S GOVERNMENT A NUMBER OF AIPAC'S BOARD MEMBERS ARE WEALTHY INDIVIDUALS WHO WANT A VOICE IN THE WORLD OF MIDDLE EAST DIPLOMACY THEY HOLD HARDLINE VIEWS THAT WERE MORE COMPATIBLE WITH ISRAEL'S FORMER LIKUD GOVERNMENT THAN THE CURRENT LABORLED GOVERNMENT MR DINE WHO ONCE ALSO ARTICULATED THAT VIEW NOW IS KNOWN TO BE MORE FLEXIBLE ON THE PEACE PROCESS AIPAC ALSO SUFFERED A MAJOR DEFEAT WHEN THE BUSH ADMINISTRATION WITHHELD 10 BILLION IN LOAN GUARANTEES FOR ISRAEL BECAUSE THE LIKUD GOVERNMENT REFUSED TO ALTER ITS SETTLEMENTS POLICY IN THE OCCUPIED TERRITORIES FORMER PRESIDENT BUSH GRANTED THE GUARANTEES LAST SUMMER TO PRIME MINISTER YITZHAK RABIN WHO AGREED TO CHANGE THAT POLICY 9306290066 930629 LEISURE & ARTS NEW MOVIES WORTH SEEING BY JULIE SALAMON THE BIG TRICK IN MAKING HOLLYWOOD BIOPICS INTO PLEASURABLE SCHLOCK IS FINDING THE RIGHT ACTORS TO PLAY THE PARTS ESPECIALLY WHEN THE MOVIE'S ABOUT A STILL VIBRANT PERFORMER LIKE TINA TURNER MIRACLES DO HAPPEN AND THESE FILMMAKERS FOUND THEIRS IN MS BASSETT SHE MOVES LIKE A WOMAN POSSESSED BY WHATEVER POSSESSES MS TURNER AND IT'S A KICK TO WATCH MR FISHBURNE IS GREAT TOO AS IKE HER CATALYST AND HER ABUSER ANYONE WHOSE IMAGINATION HAS BEEN TOUCHED BY DINOSAURS WILL BE ENTRANCED BY JURASSIC PARK THESE CINEMATIC GRANDCHILDREN OF THE MONSTER LIZARD GODZILLA ARE STUPENDOUS SOME ARE TERRIFYING OTHERS ARE QUITE BEAUTIFUL THE PROBLEM MAY BE THAT WHILE THE DINOS FEEL REAL THE HUMANS FEEL FAKE HOWEVER THE PICTURE DOES WHAT IT'S MEANT TO DO DIG UP LOTS OF PREHISTORIC TERROR IT'S VERY SCARY TOO SCARY FOR THE YOUNGSTERS LINING UP FOR JURASSIC PARK GOODIES AT BURGER JOINTS AND ELSEWHERE MR HANKS IS TOUCHING AND FUNNY AS A WIDOWER WHO TALKS ABOUT HIS SORROW ON NATIONAL RADIO AND FINDS HIS NEXT WIFE SHE'S PLAYED CUTELY BY MEG RYAN THE OBSTACLE TO THEIR MEETING WHICH OCCUPIES MOST OF THE FILM IS GEOGRAPHIC HE LIVES IN SEATTLE SHE LIVES IN BALTIMORE THERE'S MUCH WHIMSICAL ROMANTICISM AND FAR TOO MUCH RELIANCE ON OLD SONGS TO MAKE EMOTIONAL POINTS STILL IT'S A PLEASANT ENTERTAINMENT LIKE COTTON CANDY SWEET AND STICKY BY MAKING THEIR WESTERN HEROES BLACK WITH A TOKEN WHITE AMONG THEM MR VAN PEEBLES AND SCREENWRITERS SY RICHARDSON AND DARIO SCARDAPANE HAVE REINVENTED THE FORM WHAT MAKES THE PICTURE INTERESTING AS WELL AS ENTERTAINING SOMETHING NEW AND NOT JUST ANOTHER WESTERN IS THE BLACK PERSPECTIVE MR BRANAGH HAS MADE SHAKESPEARE'S MUCH ADO INTO A GREAT SUMMER PICTURE A GIDDY LIGHTHEARTED POSTBEACH ENTERTAINMENT WHO WOULD HAVE THOUGHT IT BUT DON'T WORRY THIS ISN'T THE RAP VERSION IT'S JUST THAT YOU CAN TELL WHAT KIND OF CHARGE MR BRANAGH GETS OUT OF SHAKESPEARE HE WANTS US TO GIGGLE WITH DELIGHT AND WE DO THIS PICTURE ABOUT A WOMAN'S JOURNEY THROUGH THE CHINESE BUREAUCRACY IS CONSTRUCTED LIKE AN EXQUISITE SHORT STORY IT'S A FABLE THAT MANAGES TO ADDRESS THE BIGGEST QUESTIONS ABOUT JUSTICE AND HUMANITY AND TO ANSWER THEM WITHIN THE CONFINES OF A VERY SMALL TALE OF REVENGE IT'S WISE AND ALSO FUNNY MR ZHANG'S SIGNATURE IS EASY TO SEE THE SEDUCTIVE STYLE THAT CONTEMPLATES AND HEIGHTENS THE PAGEANTRY OF EVERYDAY LIFE ONE SEES CHINA HIS WAY AS CONFORMITY INTERRUPTED BY HOT FLASHES OF PASSION 9306290065 930629 CREDIT RATINGS MOODY'S DOWNGRADES RATINGS OF NATIONAL MEDICAL ENTERPRISES NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT DOWNGRADED BY TWO NOTCHES THE RATINGS ON ABOUT 350 MILLION OF NATIONAL MEDICAL ENTERPRISES INC'S SENIOR UNSECURED DEBT THE AGENCY CUT THE RATINGS TO BAA3 FROM BAA1 CITING CONTINUING DIFFICULTIES IN THE SANTA MONICA CALIFBASED HEALTHCARE CONCERN'S PSYCHIATRIC HOSPITAL OPERATIONS AND DETERIORATION IN REHABILITATION HOSPITAL OPERATIONS THE DOWNGRADE ALSO REFLECTS UNCERTAINTIES CAUSED BY LITIGATION WITH INSURANCE COMPANIES OVER CERTAIN NATIONAL MEDICAL ADMISSIONS AND BILLING PRACTICES THE RATINGS AGENCY SAID THE UNCERTAIN REGULATORY ENVIRONMENT POSES ADDITIONAL RISK FOR NATIONAL MEDICAL AND OTHER COMPANIES IN THE HEALTHCARE INDUSTRY NATIONAL MEDICAL REMAINS AN INVESTMENTGRADE COMPANY BASED ON THE STRENGTH OF CASH FLOWS AND ON THE EXPECTATION THAT EVEN WITH THE EFFECTS OF SUBSTANTIAL LITIGATION SETTLEMENTS DEBTPROTECTION MEASUREMENTS SHOULD REMAIN ADEQUATE MOODY'S SAID NATIONAL MEDICAL'S RATING OUTLOOK WILL REMAIN NEGATIVE UNTIL THE LEGAL DISPUTES ARE RESOLVED MOODY'S SAID A NATIONAL MEDICAL SPOKESMAN SAID THE RATINGS DOWNGRADE WASN'T UNEXPECTED HE SAID THE BALANCE SHEET IS STRONG CASH FLOW IS STILL POSITIVE AND WE'RE WORKING HARD TO PUT THE COMPANY IN A POSITION WHERE THOSE RATINGS CAN MOVE BACK UP 9306290064 930608 WHAT'S WRONG WITH THE ELITE LAW SCHOOLS BY MARY ANN GLENDON LANI GUINIER'S APPARENT ASTONISHMENT UPON LEARNING THAT HER VIEWS ON VOTING REFORM WERE REGARDED AS TOO EXTREME BY THE COUNTRY'S MOST LIBERAL DEMOCRATIC SENATORS RAISES A QUESTION ABOUT THE MILIEU IN WHICH HER IDEAS WERE DEVELOPED TESTED AND FIRST AIRED THE ROOTS OF HER DIFFICULTIES LIE IN A LEGAL ACADEMIC ESTABLISHMENT THAT IS WOEFULLY OUT OF TOUCH WITH AMERICAN CULTURE AND POLITICAL LIFE WHY IS IT THAT THE 43YEAROLD LEGAL EDUCATOR HAD NO INKLING OF HOW UNREALISTIC WERE HER PRESCRIPTIONS FOR ONE OF AMERICA'S GRAVEST SOCIAL ISSUES THE FACT IS BY PROF GUINIER'S STUDENT DAYS IN THE '70S THE NATION'S ELITE LAW SCHOOLS WERE INCREASINGLY EXALTING THEORY OVER PRACTICE AND JUDICIAL DECISIONMAKING OVER ORDINARY POLITICS A GROWING DISDAIN FOR THE PRACTICAL ASPECTS OF LAW A ZANY PASSION FOR NOVELTY A CONFUSION OF ADVOCACY WITH SCHOLARSHIP AND A MISTRUST OF MAJORITARIAN INSTITUTIONS ALL CONTRIBUTE TO A RELATIVELY HOMOGENEOUS POLITICAL CULTURE WITHIN THE CLOISTER NO WONDER PRODUCTS OF THAT HOTHOUSE ENVIRONMENT WILT QUICKLY IN THE OPEN MARKETPLACE OF IDEAS THE RELENTLESS INSISTENCE ON VANGUARD NOVELTY BEGINS WITH THE SELECTION OF CANDIDATES TO GIVE JOB TALKS AND CONTINUES THROUGH THE TENURE PROCESS THERE IS LITTLE ESTEEM ACCORDED AT ELITE LAW SCHOOLS TO WORK THAT IS NOT PERCEIVED AS BEING ON THE CUTTING EDGE THUS BEGINNERS WHO HAVE BARELY BEGUN TO HAVE A SENSE OF LEGAL TRADITIONS ARE PRODDED PREMATURELY INTO ATTEMPTING PARADIGMSHATTERING INNOVATIONS NO WONDER THAT THEIR EARNEST EFFORTS TO VAULT FRONTIERS SO OFTEN CAST THEM BEYOND THE FRINGE CLOSELY CONNECTED TO THE RAGE FOR INNOVATION IS AN ALARMINGLY WIDESPREAD DISDAIN FOR THE USEFUL FORMS OF LEGAL SCHOLARSHIP THAT SYSTEMATIZE REFINE AND INCREMENTALLY EXTEND KNOWLEDGE ABOUT LAW A GLANCE AT THE TABLES OF CONTENTS OF LEADING LAW REVIEWS WILL SHOW YOU AS MUCH ON HEGEL AS ON HABEAS CORPUS THE RATIO OF PRACTICAL TO THEORETICAL ARTICLES HAS DROPPED IN 25 YEARS FROM OVER FOURTOONE TO ABOUT ONETOONE IN THIS TURN FROM PRACTICE THERE IS LITTLE DIFFERENCE BETWEEN NEOCONSERVATIVE AND NEOLIBERAL ACADEMICS YALE LEGAL ECONOMIST GEORGE PRIEST WRITING IN THE JOURNAL OF LEGAL EDUCATION IS AS ENTHUSIASTIC AS ANY CRITICAL LEGAL SCHOLAR IN HERALDING THE NEW AGE OF FANCY THEORY THE LEGAL SCHOLAR MAY HAVE BEEN CERTAIN AS HE SELECTED HIS CAREER THAT THE LAW AND THE LEGAL SYSTEM WERE SUBJECTS OF CENTRAL INTELLECTUAL IMPORTANCE BUT NOW THEORY TELLS HIM THAT HE IS WRONG MERE ECCENTRICITY OR ARROGANCE CAN SHADE INTO CORRUPTION WHERE ADVOCACY SCHOLARSHIP IS CONCERNED JUDGE LEARNED HAND WARNED LONG AGO THAT THE SEDUCTIVE COMBINATION OF PARTISANSHIP AND SCHOLARSHIP WAS HAZARDOUS TO THE SCHOLARLY ENTERPRISE YOU CANNOT RAISE THE STANDARD AGAINST OPPRESSION OR LEAP INTO THE BREACH TO RELIEVE INJUSTICE AND STILL KEEP AN OPEN MIND TO EVERY DISCONCERTING FACT OR AN OPEN EAR TO THE COLD VOICE OF DOUBT RISKY OR NOT LAW PROFESSORS NOW DO IT ALL THE TIME JUDGE RICHARD POSNER THEREFORE COUNSELS THEM ON HOW TO DO IT SAFELY AND RESPONSIBLY CANDIDLY EXPOSE YOUR REASONING PROCESSES AND DO YOUR BEST TO FAIRLY ASSESS THE MERITS OF OPPOSING VIEWS STILL IT'S A DICEY BUSINESS SCHOLARLY OPENMINDEDNESS AND EVENHANDEDNESS CAN EASILY FALL BY THE WAYSIDE ANOTHER CASUALTY OF THE NEWAGE LEGAL ACADEMY IS ROBUST DISCUSSION OF THE SORT THAT MIGHT HAVE HELPED MS GUINIER TO STRENGTHEN HER ARGUMENTS AND AVERT MISUNDERSTANDINGS HER SURPRISE AT THE PUBLIC RECEPTION OF HER NOTION THAT THE COURTS SHOULD CHANGE VOTING RULES TO PROTECT THE INTERESTS OF MINORITIES SUGGESTS THAT FELLOW ACADEMICS DID NOT DO HER THE FAVOR OF SUBJECTING HER THEORIES TO STRENUOUS CONSTRUCTIVE CRITICISM BUT HOW COULD SUCH VIEWS GET A GOOD WORKOUT IN ENVIRONMENTS CHARACTERIZED BY PERVASIVE MISTRUST OF MAJORITARIAN INSTITUTIONS OFFERING LEGAL ACADEMICS NEW IDEAS FOR BYPASSING ORDINARY POLITICS IS LIKE HANDING OUT HEROIN TO ADDICTS THE AVERAGE LAW PROFESSOR HAS A HIGH TOLERANCE FOR IDEAS THAT WOULD SEND LIBERAL STALWARTS LIKE JOSEPH BIDEN AND PATRICK LEAHY INTO SHOCK SOME OF MS GUINIER'S ACADEMIC DEFENDERS SOUGHT TO CHARACTERIZE HER MORE CONTROVERSIAL PASSAGES AS MERE THOUGHT EXPERIMENTS BUT TO HER CREDIT SHE STOOD HER GROUND UNDERSTANDING THAT ACADEMICS WHO WISH TO HAVE AN EFFECT ON PUBLIC POLICY CAN'T HAVE IT BOTH WAYS HER FRIENDS SHOULD HAVE BEEN THERE WHEN SHE NEEDED THEM WHEN HER ARTICLES WERE IN THE DRAFT STAGE THE FATE OF LANI GUINIER SHOULD SEND TWO MESSAGES TO LEGAL EDUCATORS LEST A WHOLE GENERATION OF TALENTED YOUNG MEN AND WOMEN BE MARGINALIZED CREATIVITY IN LAW AS IN OTHER HUMAN ENDEAVORS GENERALLY EMERGES OUT OF PAINSTAKING WORK WITHIN A LIVING DYNAMIC SELFCRITICAL TRADITION THE UNHAPPY EFFECT OF ELITE DISDAIN FOR POLITICS THROUGH BARGAINING EDUCATION AND PERSUASION IS A BLIGHT ON THE ABILITY OF PROMISING YOUNG SCHOLARS TO CONTRIBUTE CONSTRUCTIVELY TO PUBLIC LIFE MS GLENDON IS A PROFESSOR AT HARVARD LAW SCHOOL SEE RELATED LETTERS LETTERS TO THE EDITOR DID THEY ACTUALLY READ LANI GUINIER WSJ JUNE 29 1993 9306080154 YY93 MM06 9306290063 930629 BUSINESS BRIEF HOSPITALITY FRANCHISE SYSTEMS INC COMPANY BUYS HOTEL CHAIN FROM PARK INNS INTERNATIONAL HOSPITALITY FRANCHISE SYSTEMS INC PARSIPPANY NJ SAID IT PURCHASED THE 61HOTEL PARK INN HOTEL FRANCHISE SYSTEM IN THE US AND CANADA FROM PARK INNS INTERNATIONAL INC SAN FRANCISCO TERMS WEREN'T DISCLOSED THE FRANCHISE SYSTEM REPRESENTS ABOUT 6000 ROOMS AND ADDS TO THE GROWING STABLE OF HOSPITALITY FRANCHISE SYSTEMS HOTEL NAMES WHICH INCLUDE DAYS INN HOWARD JOHNSON RAMADA AND SUPER 8 THE COMPANY CURRENTLY IS THE FRANCHISER FOR MORE THAN 3600 HOTELS AND MORE THAN 360000 ROOMS HOSPITALITY FRANCHISE ADDED THAT PARK INN WILL CONTINUE TO MANAGE A NUMBER OF INTERNATIONAL HOTELS AS THE PARK INN INTERNATIONAL WORLDWIDE HOTEL GROUP 9306290062 930629 ALCOA WILL CUT OUTPUT BY 25 TRIM US FORCE ALUMINUM PRODUCER CITES A GLOBAL OVERSUPPLY NO RELIEF IS IN SIGHT BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH ALUMINUM CO OF AMERICA CITING A WORLD OVERSUPPLY OF ALUMINUM THAT SHOWS NO SIGNS OF EASING SAID IT IS CUTTING A QUARTER OF ITS US CAPACITY AND LAYING OFF 750 WORKERS OR ABOUT 2 OF ITS DOMESTIC WORK FORCE THE NATION'S NO 1 ALUMINUM PRODUCER SAID IT IS IDLING 268000 METRIC TONS OF ANNUAL PRIMARY ALUMINUM CAPACITY OVER THE NEXT THREE WEEKS AT FIVE LOCATIONS ITS TOTAL US SMELTING CAPACITY IS 13 MILLION METRIC TONS THE PRODUCTION CUT MARKS A CHANGE IN DIRECTION FOR ALCOA WHICH HAD SAID IT WOULDN'T REDUCE CAPACITY BUT EXPECTED HIGHERCOST COMPETITORS TO DO SO YESTERDAY HOWEVER ALCOA SAID IT SEES NO RELIEF FROM THE ALUMINUM GLUT WHICH HAS PUSHED PRICES DOWN TO THE LOWESTEVER REAL LEVELS AT RECENT LEVELS OF 52 CENTS A POUND PRICES ARE 25 CENTS TO 30 CENTS UNDER REPLACEMENT COST PRICING FOR THE SMELTERS THAT MAKE THE PRODUCT THE COMPANY ADDED THAT IT BELIEVES THAT AT THESE PRICE LEVELS CASH COSTS AT SOME WORLD SMELTERS ARE HIGHER THAN THEIR REALIZED PRICES IT BLAMED PRODUCERS IN THE FORMER SOVIET UNION WHICH IT SAID BEGAN SELLING INTO THE WORLD MARKET AFTER DEFENSE CUTBACKS AND A SOUR ECONOMY SLASHED DEMAND AT HOME CHAIRMAN PAUL H O'NEILL SAID HE DOESN'T EXPECT THE MOVE WILL AFFECT EARNINGS IN THE YEAR'S SECOND HALF ANALYSTS WELCOMED THE NEWS THIS IS THE FIRST MAJOR AND CORRECTIVE STEP IN OVERCOMING THE TREMENDOUS LEVELS OF INVENTORIES THAT HAVE BEEN DEPRESSING THE INDUSTRY FOR A LONG TIME SAID J CLARENCE MORRISON AN ANALYST WITH PRUDENTIAL SECURITIES RESEARCH I WOULD HOPE THAT ALCOA WOULD BE JOINED BY OTHER PRODUCERS INDEED CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES SAID ANOTHER 250000 METRIC TONS OF CAPACITY NEEDS TO BE IDLED STILL MR BRADFORD AND OTHER ANALYSTS SAID THEY EXPECT ALCOA'S DECISION WILL PUSH UP ALUMINUM PRICES AT LEAST SHORT TERM BUT THEY EXPRESSED CONCERN THAT SOME ALUMINUM MAKERS MIGHT SEE HIGHER PRICES AS AN OPPORTUNITY TO RESTART IDLED CAPACITY ULTIMATELY WORSENING THE OVERSUPPLY PROBLEM MR O'NEILL CALLED THE PRODUCTION CUTBACK A LONG PLAY I CAN'T IMAGINE THE MARKET CONDITIONS WILL CHANGE ENOUGH IN THE NEXT THREE TO FOUR MONTHS FOR US TO REVERSE OUR ACTION ALCOA'S DECISION MEANWHILE RAISES THE POSSIBILITY OF LOWER PRICES FOR ITS PROFITABLE ALUMINA OPERATIONS SAID MR BRADFORD ALUMINA A POWDER USED IN MAKING ALUMINUM NORMALLY DESTINED FOR ALCOA'S OWN OPERATIONS COULD END UP IN THE MARKET PUSHING DOWN PRICES ON CONTRACTS NEXT YEAR HE SAID MR O'NEILL SAID THE DECISION WON'T AFFECT ALUMINA PRODUCTION SOME ANALYSTS CONTEND ALOCA'S ALUMINA OPERATIONS ARE KEEPING ALCOA IN THE BLACK ALCOA EARNED 276 MILLION OR 31 CENTS A SHARE IN THE QUARTER ENDED MARCH 31 OFF 50 FROM THE YEAREARLIER PERIOD ALCOA SAID THAT BEFORE DECIDING TO SLASH CAPACITY IT CONSIDERED ASKING THE US GOVERNMENT FOR PROTECTIONIST TRADE ACTION BUT ULTIMATELY REJECTED THAT COURSE IT SEEMS GENUINELY UNJUST TO ASK THE FORMER SOVIET UNION TO RETREAT FROM THE WORLD MARKET SIMPLY BECAUSE THEY ARE AN UNSETTLING PRESENCE GAUTAM NAIK CONTRIBUTED TO THIS ARTICLE 9306290061 930629 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN DEMOCRATS AND BIG BUSINESS SQUARE OFF OVER PENSION LAWSUITS THIS MONTH THE SUPREME COURT RULED THAT WORKERS CAN'T SUE PENSION PLAN ADVISERS BUT CAN SEEK DAMAGES ONLY FROM THOSE WHO DIRECTLY CONTROL THE PLANS AN OUTRAGED SEN HOWARD METZENBAUM D OHIO SOUGHT TO REEXPAND LEGAL AUTHORITY TO SUE BY PROPOSING AN AMENDMENT TO THE HUGE BUDGET PACKAGE THAT PASSED THE SENATE LAST WEEK SHORTLY BEFORE THE BILL PASSED SENATE LEADERS PULLED OUT THE AMENDMENT THE ISSUE ISN'T DEAD YET THE CLINTON ADMINISTRATION BACKS A BROADER RIGHT TO SUE AND WOULD BACK A MEASURE AMENDING THE EMPLOYEE RETIREMENT INCOME SECURITY ACT SO BUSINESS GROUPS INCLUDING THE AMERICAN BANKERS ASSOCIATION HAVE STARTED A DEFENSE OF THE SUPREME COURT RESTRICTION SAYING IT WILL HOLD DOWN LEGAL COSTS IN CREATING ERISA IN THE 1970S CONGRESS SOUGHT TO EXPAND PENSION PLANS THE METZENBAUM MOVE WOULD CURTAIL THEM ARGUES STEPHEN FRANKEL THE CHICAGO LAWYER WHO WON THE HIGH COURT CASE CLINTON TAPS WILLIAM GOULD IV TO HEAD THE NATIONAL LABOR RELATIONS BOARD THE 56YEAROLD STANFORD UNIVERSITY LAW PROFESSOR WHO WOULD BE THE FIRST BLACK TO HEAD THE NLRB BACKS WORKERMANAGEMENT TEAMS AS CRUCIAL TO COMPANIES' ABILITY TO COMPETE INTERNATIONALLY BUT HE ALSO HAS WRITTEN THAT THOSE COMMITTEES SHOULDN'T BE ALLOWED TO NEGOTIATE WITH EMPLOYERS OVER WAGES HOURS OR WORKING CONDITIONS UNLESS THE UNION AGREES CORPORATE GROUPS FRET OVER MR GOULD'S VIEW ON UNION ORGANIZING HE BACKS COLLECTIVE BARGAINING FOR WORKERS' GROUPS WHERE ONLY 20 OR 30 OF THE WORKERS WANT REPRESENTATION CURRENTLY HALF NEED TO VOTE IN FAVOR OF A UNION HE ALSO CONTENDS THAT THE TWOSTEP ELECTION PROCESS SHOULD BE REPLACED BY A ONESTEP SYSTEM THE NOMINATION REQUIRES SENATE APPROVAL HERE'S THE DRILL WITH JOBS SCARCE DENTISTS HEAD FOR EXISTING PRACTICES WITH BIG PERSONAL LOANS AND OVERCAPACITY IN THE INDUSTRY YOUNG DENTISTS INCREASINGLY ARE JOINING EXISTING PRACTICES AS EMPLOYEES OR ASSOCIATES RATHER THAN PARTNERS THE NUMBER OF RECENT DENTAL GRADS PLANNING TO GO DIRECTLY INTO SOLO PARTNERSHIP OR GROUP PRIVATE PRACTICES FELL TO 18 OF DENTAL SCHOOL SENIORS LAST YEAR FROM A THIRD IN 1979 SAYS THE AMERICAN ASSOCIATION OF DENTAL SCHOOLS EVEN THOSE LESSER JOBS ARE HARDER TO FIND AS DENTISTRY DEMAND SLIPS DUE TO THE RECESSION AND CORPORATE CUTS TO DENTAL PLANS SO SOME YOUNG DENTISTS WORK PARTTIME OR FILL IN AS DENTAL HYGIENISTS WHILE LOOKING FOR FULLTIME DENTIST JOBS SAYS BRIAN COLLINS OF THE DALLAS COUNTY DENTAL SOCIETY IN ADDITION 36 OF GRADUATING SENIORS PLAN TO PURSUE ADVANCED DEGREES MORE THAN DOUBLE THE PERCENTAGE OF 1979 THE AADS SAYS DENTALSCHOOL ENROLLMENT HAS DROPPED 35 SINCE 1979 THE BUREAU OF LABOR STATISTICS SAYS GUARDIAN OF THE WORKERS WITH SUMMER UPON US OSHA RERELEASES ITS FACT SHEET PROTECTING WORKERS IN HOT ENVIRONMENTS IT INCLUDES SUCH HELPFUL TIPS AS HEAT RASH CAN BE SO UNCOMFORTABLE THAT IT INHIBITS SLEEP AND IMPEDES A WORKER'S PERFORMANCE OR EVEN RESULTS IN TEMPORARY TOTAL DISABILITY DO THEY SAY 'UNION DA' EIGHT MEMBERS OF THE RUSSIAN CONGRESS OF PEOPLES DEPUTIES BEGIN A TWOWEEK STUDY OF US LABOR LAW AND DISPUTE RESOLUTION IN WASHINGTON THEY WILL REVIEW THE FEDERAL MEDIATION AND CONCILIATION SERVICE AND LEARN ABOUT LOBBYING FROM THE AMERICAN ASSOCIATION OF RETIRED PERSONS THEN IT'S ON TO MICHIGAN WHERE THEY WILL VISIT AUTO COMPANIES AND THE UNITED AUTO WORKERS THURSDAY IS DDAY FOR US CORPORATE OFFICIALS IN FRANCE A FIVEYEAROLD TREATY BETWEEN THE US AND FRANCE EXPIRES JULY 1 FORCING AMERICAN EXPATRIATES WHO HAVE BEEN IN THAT COUNTRY FOR FIVE YEARS TO BE SUBJECT TO FRENCH SOCIALSECURITY TAXES THIS IS QUITE A BURDEN ON US MULTINATIONALS AND THEIR EMPLOYEES SAYS MIKE BISHKO ERNST & YOUNG'S DIRECTOR OF EXPATRIATE SERVICES THE QUID PRO QUO THE US WILL START COLLECTING SOCIAL SECURITY TAXES ON FRENCH WORKERS HERE USE IT OR LOSE IT MANY COMPANIES SAY ABOUT VACATION TIME SEVERAL FIRMS ARE GOING TO A MORE RESTRICTIVE POLICY FORCING WORKERS TO TAKE TIME OFF ROHR INC LAST YEAR BEGAN LIMITING TO TWO WEEKS THE TIME WORKERS CAN CARRY OVER AT SCECORP VACATION CAN BE DEFERRED FOR A YEAR AFTER THAT IT DISAPPEARS TOPPS CO THE BASEBALL CARD MAKER LETS WORKERS PUT OFF A WEEK OF VACATION IF THEIR WORKLOAD FORCES IT AT NIKE IT'S BASICALLY USE IT OR LOSE IT SAYS A SPOKESWOMAN THOUGH THE COMPANY IS WEIGHING OPTIONS A CALIFORNIA STATE APPEALS COURT RULING MAY FUEL THE TREND THE DECISION IN BOOTHBY VS ATLAS MECHANICAL SAID EMPLOYEES HAVE THE RIGHT TO CONVERT VACATION TO CASH BUT THAT CAN BECOME A TREMENDOUS UNFUNDED LIABILITY SAYS BARRY SCHIMEL A ROCKVILLE MD ACCOUNTANT I'VE SEEN SITUATIONS WHERE COMPANIES HAVEN'T BEEN SOLD BECAUSE OF THE LIABILITY COMPANIES CAN AVOID THE PROBLEM BY FORCING WORKERS TO TAKE VACATION SEVERAL COMPANIES SET UP ACCOUNTS THAT ALLOW WORKERS TO BUY MORE TIME THE CHECKOFF BOSTON MINNEAPOLIS AND NEW YORK RANK AS THE CITIES WITH THE MOST EXPENSIVE DAY CARE THE BLS SAYS JACKSON MISS SALT LAKE CITY AND CASPAR WYO ARE THE CHEAPEST CEOS MAY NOT WANT TO LET EMPLOYEES READ THIS THE UNIVERSITY OF MAINE ELIMINATES PREFERRED PARKING PRIVILEGES FOR THE TOP BRASS OPENING ALL SPACES TO ALL WORKERS A USFRANCE TREATY ON FOREIGN WORKERS WILL CONTINUE IN FORCE EVEN THOUGH US WORKERS WHO HAVE BEEN IN FRANCE FOR THE PAST FIVE YEARS WILL LOSE THEIR EXEMPTION TOMORROW FROM FRENCH SOCIALSECURITY TAXES YESTERDAY'S LABOR LETTER INCORRECTLY SAID THE TREATY WAS EXPIRING 9306290060 930629 POLITICS & POLICY STATE DEPARTMENT ISSUES SPECIAL TRAVEL ADVISORY WASHINGTON THE STATE DEPARTMENT IN THE WAKE OF SATURDAY'S US BOMBING OF IRAQ WARNED US CITIZENS IN A WORLDWIDE ADVISORY TO EXERCISE GREATER THAN USUAL CAUTION WHEN TRAVELING ABROAD THE ADVISORY WASN'T AS STRONG AS THE TRAVEL WARNING ISSUED AT THE START OF THE PERSIAN GULF WAR IN JANUARY 1991 IT DOESN'T URGE TRAVELERS TO CANCEL TRIPS OR AVOID SPECIFIC REGIONS BUT IT IS A REMINDER TO PEOPLE THAT ACTS AGAINST AMERICANS COULD OCCUR SAID A SPOKESMAN THERE ARE GOOD REASONS TO BELIEVE THERE COULD BE HEIGHTENED TENSIONS THE ADVISORY WHICH BY YESTERDAY BEGAN TO APPEAR IN THE COMPUTER RESERVATIONS SYSTEMS USED BY AIRLINES AND TRAVEL AGENTS COMES AT A BAD TIME FOR THE TRAVEL INDUSTRY ANEMIC AIR TRAFFIC A GLUT OF HOTEL ROOMS AND RECESSIONDAMPED TRAVEL DEMAND GENERALLY ARE HURTING TOURISM IN THE US AND OVERSEAS IF AMERICANS STAY HOME IN DROVES DURING THE HIGH SUMMER TRAVEL SEASON THE INDUSTRY WOULD LOSE MANY BIGSPENDING CLIENTS HOTEL CHAINS AND AIRLINES SAID IT WAS TOO EARLY TO GAUGE THE EFFECTS OF THE TRAVEL ADVISORY AND NONE REPORTED ANY CANCELLATIONS OR UNUSUAL CUSTOMER INQUIRIES 9306290059 930629 PEPPERAND SALT THE REFRIGERATOR DOOR WE'RE JUST AS COMMON AS THE ROYALS 9306290056 930629 NORTHWEST PILOTS UNION CONTINUE TALKS ON CUTS ST PAUL MINN NORTHWEST AIRLINES AND THE UNION REPRESENTING ITS PILOTS CONTINUED NEGOTIATIONS OVER LABORCOST CUTS INTENDED TO AVERT A THREATENED BANKRUPTCYLAW FILING NORTHWEST A UNIT OF CLOSELY HELD WINGS HOLDINGS INC SAID ITS BOARD WAS BRIEFED ON THE TALKS AND EXPRESSED ITS INTEREST IN REACHING A VOLUNTARY RESTRUCTURING AGREEMENT WHILE BOTH SIDES ALREADY HAVE SAID THEY HOPE TO AVOID A BANKRUPTCYLAW FILING THE STATEMENT INDICATES THAT SOME PROGRESS WAS MADE IN TALKS THAT TOOK PLACE THROUGH THE WEEKEND AND CONTINUED YESTERDAY NORTHWEST HURT BY DEBT FROM ITS 1989 LEVERAGED BUYOUT AND TURMOIL IN THE AIRLINE INDUSTRY SEEKS 886 MILLION IN SAVINGS OVER THREE YEARS FROM ITS EMPLOYEES IT ALSO IS ASKING ITS BANKS TO DEFER MUCH OF THE PAYMENTS DUE ON BANK DEBT UNTIL 1997 AND AFTER IF IT REACHES A DEAL WITH THE AIR LINE PILOTS ASSOCIATION IT WOULD THEN HAVE TO GO BACK TO UNIONS REPRESENTING ITS FLIGHT ATTENDANTS AND GROUND PERSONNEL TO TRY TO GET THEM TO APPROVE WAGE AND BENEFIT CUTS 9306290054 930629 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT FAIRFIELD MANUFACTURING CO 85 MILLION OF SENIOR SUBORDINATED NOTES DUE JULY 1 2001 PRICED AS 11375S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES ARE NONCALLABLE FOR FIVE YEARS THEN CALLABLE AT A PRICE OF 10425 AND CAN BE CALLED AT PAR IN 2000 RATED CAA BY MOODY'S INVESTORS SERVICE INC AND TRIPLECPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FAIRFIELD IS A UNIT OF LANCER INDUSTRIES INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF MEDIUMTERM NOTES DUE JULY 8 2003 PRICED AS 638S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR ONE YEAR WERE PRICED AT A SPREAD OF 58 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ILLINOIS BELL TELEPHONE CO 100 MILLION OF DEBENTURES DUE JULY 1 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY LEHMAN BROTHERS IT WAS REOFFERED AS 7125S AT 98839 TO YIELD 722 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 54 BASIS POINTS ABOVE THE COMPARABLE TREASURYS THE ISSUE IS RATED DOUBLEA1 BY MOODY'S AND TRIPLEA BY S&P ILLINOIS BELL IS A SUBSIDIARY OF AMERITECH CORP NIAGARA MOHAWK POWER CORP 110 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 2005 PRICED AS 6625S AT 9963 TO YIELD 667 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 0875 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO POTOMAC ELECTRIC POWER CO 100 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 2023 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY MERRILL LYNCH & CO IT WAS REOFFERED AS 725S AT 98711 TO YIELD 7357 ACCORDING TO MCM CORPORATEWATCH THE BONDS NONCALLABLE FOR 10 YEARS WERE PRICED AT A SPREAD OF 68 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P EK CHOR CHINA MOTORCYCLE CO INITIAL OFFERING OF 44 MILLION COMMON SHARES PRICED AT 21 APIECE THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO SHILOH INDUSTRIES INC INITIAL OFFERING OF 34 MILLION COMMON SHARES PRICED AT 11 APIECE THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO TELEGLOBE INC 44 MILLION COMMON SHARES AT 17125 CANADIAN DOLLARS US1336 APIECE THROUGH AN UNDERWRITING GROUP LED BY LEVESQUE BEAUBIEN GEOFFRION INC NESBITT THOMSON LTD AND WOOD GUNDY INC YACIMIENTOS PETROLIFEROS FISCALES 140 MILLION SHARES OF THIS STATEOWNED ARGENTINIAN OIL COMPANY PRICED AT 19 APIECE IN A GLOBAL OFFERING THROUGH UNDERWRITERS LED BY CS FIRST BOSTON 65 MILLION SHARES ARE BEING OFFERED AS AMERICAN DEPOSITARY SHARES 40 MILLION WILL BE SOLD INTERNATIONALLY AND 35 MILLION WILL BE SOLD IN ARGENTINA PROVINCE OF QUEBEC 1 BILLION OF YANKEE BONDS DUE JULY 15 2023 PRICED AS 75S AT 99689 TO YIELD 7526 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE US DOLLARDENOMINATED BONDS WERE PRICED AT A SPREAD OF 84 BASIS POINTS ABOVE US TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP TENNESSEE HOUSING DEVELOPMENT AGENCY 2659 MILLION 1993 SERIES A MORTGAGE FINANCE PROGRAM BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 47 IN 1999 TO 595 IN 2028 THE BONDS WHICH AREN'T SUBJECT TO THE FEDERAL ALTERNATIVEMINIMUM TAX HAVE BEEN RATED SINGLEAPLUS BY S&P AND ARE EXPECTED TO RECEIVE A SINGLEA1 RATING FROM MOODY'S FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES TRUST 1993131 IS BACKED BY THE AGENCY'S 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 145 YEARS ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 100 MILLION OF FLOATINGRATE EURONOTES DUE JULY 12 1996 AT ISSUE AND FIXED REOFFER PRICE PAR VIA LEHMAN BROTHERS INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR POUNDS PLUS 025 POINT SUBJECT TO MAXIMUM COUPON OF 875 GUARANTOR ABBEY NATIONAL PLC FEES 02 POINT BAYERISCHE VEREINSBANK AG GERMANY 150 MILLION CANADIAN DOLLARS OF 7125 EUROBONDS DUE JULY 29 1999 AT ISSUE PRICE 101175 VIA PARIBAS CAPITAL MARKETS LTD REOFFERED AT 996 TO YIELD 721 ANNUAL A SPREAD OF 40 BASIS POINTS ABOVE 65 CANADIAN GOVERNMENT NOTE DUE 1998 FEES 1875 POINTS COMMONWEALTH BANK OF AUSTRALIA AUSTRALIAN AGENCY 100 MILLION AUSTRALIAN DOLLARS OF 7625 EUROBONDS DUE AUG 5 2003 AT ISSUE PRICE 100725 VIA COMMONWEALTH BANK OF AUSTRALIA BONDS YIELD 783 AT BREAKEVEN PRICE FOR UNDERWRITERS A MARGIN OF 10 BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT BOND FEES 2125 POINTS CREDIT NATIONAL FRENCH AGENCY ONE BILLION FRENCH FRANCS OF 725 EUROBONDS DUE MAY 14 2003 AT ISSUE AND FIXED REOFFER PRICE 10162 VIA CREDIT COMMERCIAL DE FRANCE BONDS WILL TRADE INTERCHANGEABLY WITH TWO BILLION FRANCS OF OUTSTANDING IDENTICAL NOTES BONDS YIELD 701 ANNUAL A SPREAD OF 34 BASIS POINTS ABOVE 675 FRENCH TREASURY NOTE DUE 2003 FEES 0375 POINT HITACHI CREDIT CORP JAPANESE PARENT 100 MILLION OF 55 EUROBONDS DUE JULY 28 1998 AT ISSUE PRICE 100755 VIA UBS LTD REOFFERED AT 9918 TO YIELD 569 ANNUAL A SPREAD OF 49 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 1875 POINTS KINGDOM OF SWEDEN SOVEREIGN 350 MILLION OF 7625 EUROBONDS DUE JULY 28 2000 AT ISSUE AND FIXED REOFFER PRICE 99244 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD AND JP MORGAN SECURITIES LTD BONDS YIELD 777 ANNUAL A SPREAD OF 33 BASIS POINTS ABOVE 9 GILT DUE 2000 FEES 03 POINT OSAKA GAS CO JAPAN 150 MILLION OF 8125 EUROBONDS DUE AUG 4 2003 AT ISSUE PRICE 101118 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD REOFFERED AT 99468 TO YIELD 8205 ANNUAL A MARGIN OF 40 BASIS POINTS ABOVE 8 GILT DUE 2003 FEES TWO POINTS RABOBANK NEDERLAND NETHERLANDS 500 MILLION DUTCH GUILDERS OF 625 EUROBONDS DUE JULY 22 1998 AT ISSUE PRICE 10085 VIA RABOBANK REOFFERED AT 10005 TO YIELD 624 ANNUAL A SPREAD OF 15 BASIS POINTS ABOVE 625 DUTCH STATE LOAN DUE 1998 FEES ONE POINT REPUBLIC OF TURKEY SOVEREIGN 750 MILLION MARKS OF 875 EUROBONDS DUE JULY 9 2003 AT ISSUE PRICE 10165 VIA DG BANKDEUTSCHE GENOSSENSCHAFTSBANK REOFFERED AT 9925 TO YIELD 887 A MARGIN OF 220 BASIS POINTS ABOVE COMPARABLE GERMAN BUND FEES FOR COMANAGING BANKS 2295 POINTS FEES FOR LEAD UNDERWRITER 25 POINTS SOCIETE GENERALE ACCEPTANCE NV FRENCH PARENT 500 MILLION FRENCH FRANCS OF REVERSED FLOATINGRATE EURONOTES DUE SEPT 1 2003 AT ISSUE PRICE 100875 REOFFERED AT 995 VIA SOCIETE GENERALE INTEREST PAYABLE ANNUALLY AT 7 FOR FIRST YEAR THEREAFTER INTEREST PAYABLE QUARTERLY AT 1575 LESS MULTIPLE OF 15 TIMES THREEMONTH PARIS INTERBANK OFFERED RATE FOR FRANCS GUARANTOR SOCIETE GENERALE FEES 1875 POINTS TOKYO ELECTRIC POWER CO JAPAN 1 BILLION OF 6125 EUROBONDS DUE JULY 29 2003 AT ISSUE AND FIXED REOFFER PRICE 99182 VIA GOLDMAN SACHS INTERNATIONAL LTD BONDS YIELD 624 ANNUAL A SPREAD OF 36 BASIS POINTS ABOVE 10YEAR US TREASURY NOTE FEES 0325 POINT 9306290053 930629 BOEING PLANS IMPROVED SERIES OF 737 AIRCRAFT MOVE SEEKS TO FEND OFF AIRBUS AND DOMINATE SMALLJETLINER MARKET BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO MOVED TO DEFEND ITS DOMINANCE OF THE SMALLJETLINER MARKET OFFERING AIRLINES A SERIES OF 737X AIRCRAFT THAT WILL COST 1 BILLION TO DEVELOP THE DECISION MADE BY BOEING DIRECTORS AT A MEETING YESTERDAY IS AIMED AT TRIMMING MARKET INROADS BY EUROPE'S AIRBUS INDUSTRIE CONSORTIUM AND AT ENCOURAGING AIRLINES TO RETIRE THEIR OLDEST 737S BOEING'S PLAN IS TO OFFER AIRLINES A MORE EFFICIENT LINE OF THREE 737 MODELS UPGRADING ITS CURRENT 737300S 737400S AND 737500S WITH VERSIONS ABLE TO FLY FARTHER AND FASTER BECAUSE OF NEW ENGINES AND NEWLY DESIGNED WINGS AND TAIL SECTIONS THE 737400X WOULD HAVE 157 SEATS ABOUT TWO ROWS MORE THAN A 146SEAT 737400 THE LARGEST OF THE 737S WHEN THE SEATTLE COMPANY HAS OBTAINED ORDERS FROM INITIAL LAUNCH CUSTOMERS AND FINDS SUFFICIENT INTEREST FROM OTHER AIRLINES BOEING IS LIKELY TO PROCEED WITH PRODUCING THE REDESIGNED JETLINERS FIRST DELIVERIES WOULD BE TIMED FOR LATE 1997 ESSENTIAL TO THE IMPROVEMENTS ARE UPGRADED ENGINES FROM CFM INTERNATIONAL A JOINT VENTURE OF GENERAL ELECTRIC CO AND SNECMA OF FRANCE THAT HAS BEEN SOLE ENGINE SUPPLIER FOR THE PAST 1320 OF THE 737 JETS PRODUCED IN ALL MORE THAN 2500 HAVE BEEN DELIVERED AND 565 ARE ON ORDER TO OBTAIN THE EXCLUSIVE ENGINE WORK FOR THE 737X LINE GE OFFICIALS AGREED TO PAY A SIGNIFICANT PART OF THE 1 BILLION NONRECURRING AIRCRAFTDEVELOPMENT COST THAT BOEING ANTICIPATES AND THEY AGREED TO PROVIDE GREATER CONCESSIONS SUCH AS DISCOUNTS TO AIRLINES ACCORDING TO PEOPLE FAMILIAR WITH THE ARRANGEMENTS BOEING AND GE OFFICIALS WOULDN'T CONFIRM THE COST FIGURES OR THE NATURE OF GE'S AGREEMENT ALTHOUGH THERE IS SOME RISK FOR BOEING THE COMPANY HAS CAREFULLY CONSIDERED POTENTIAL DEMAND FOR LIMITED IMPROVEMENTS BY WORKING WITH A STUDY GROUP OF ABOUT 30 AIRLINES AROUND THE GLOBE IN RECENT MONTHS WE KNOW WHAT THEY NEED BECAUSE THEY'VE TOLD US SAID GORDON BETHUNE A BOEING VICE PRESIDENT WHO ADDED THAT WE HAVE EVERY CONFIDENCE THAT THIS WILL BE SOMETHING THAT WE DO AND THAT'S THE WAY WE'RE PROCEEDING BOEING'S SERIES OF 737 JETS THE LARGESTSELLING AIRCRAFT EVER HAS LONG DOMINATED THE MARKET FOR PLANES OF 110 TO 150 SEATS BUT THE COMPANY HAS FACED INCREASING COMPETITION FROM AIRBUS'S 150PASSENGER A320 AS WELL AS LARGER A321 AND SMALLER A319 VERSIONS LAST YEAR AIRBUS SCORED A MAJOR VICTORY AGAINST BOEING WHEN IT PLACED AN ORDER FOR AS MANY AS 100 A320S WITH UAL CORP'S UNITED AIRLINES A CARRIER THAT PREVIOUSLY HAD ORDERED BOEING AIRCRAFT THE NEWER AIRBUS LINE OFFERS SUCH TECHNOLOGICAL ADVANCES AS ELECTRONIC FLYBYWIRE SYSTEMS REPLACING HYDRAULICS IN AIRCRAFTCONTROL SYSTEMS THE AIRBUS JETS ALSO PROVIDE PRACTICAL ADVANTAGES INCLUDING THE RANGE TO SERVE US TRANSCONTINENTAL ROUTES AND WHAT AIRBUS SAYS IS AT LEAST 12 BETTER FUEL EFFICIENCY THE A320 FAMILY HAS SET THE STANDARD AND BOEING IS ATTEMPTING TO MODIFY THE 737400 IN AN ATTEMPT TO CATCH UP WE SUSPECT THEY'LL FALL SHORT SAID JOHN LEAHY MARKETING AND SALES CHIEF FOR AIRBUS IN NORTH AMERICA BUT BOEING'S MR BETHUNE AND OTHER OFFICIALS SAID CUSTOMERS DON'T WANT IMPROVEMENTS SUCH AS FLYBYWIRE THAT WON'T PAY FOR THEMSELVES DIRECTLY WITH IMPROVED EFFICIENCY PERFORMANCE SAFETY OR OTHER MEASURABLE ADVANTAGES FOR THAT REASON SAID THE BOEING OFFICIALS THE COMPANY HAS DECLINED TO INVEST IN FLYBYWIRE TECHNOLOGY IN THE LATEST REDESIGN WHILE OPTING FOR DESIGN AND PERFORMANCE IMPROVEMENTS THAT WILL GIVE IT EASY TRANSCONTINENTAL RANGE OF ABOUT 2900 NAUTICAL MILES ABOUT 800 MILES GREATER THAN EXISTING MODELS AND MORE THAN ENOUGH RANGE TO FLY TO SAN FRANCISCO FROM BOSTON AT THE SAME TIME THEY SAID THE COMPANY HAS OPTED TO RETAIN ITS EXISTING 737 FUSELAGE FLIGHT DECK AND OTHER FEATURES THIS WILL ALLOW AIRLINES TO AVOID RETRAINING COSTS AND OTHER EXPENSES WHEN INTEGRATING 737X MODELS INTO OLDER FLEETS SIMULTANEOUSLY BOEING MUST TRY TO CUT PRODUCTION COSTS SHARPLY TO PREVENT THE NEW LINE FROM BEING SIGNIFICANTLY MORE EXPENSIVE BOEING'S CURRENT 737 LINE CARRIES LIST PRICES OF 29 MILLION TO 43 MILLION AND ANALYSTS GENERALLY AGREE THAT AIRBUS LIST PRICES ARE SOMEWHAT HIGHER TO BEGIN PRODUCING THE 737X LINE BOEING WILL NEED LAUNCH CUSTOMERS WORLDWIDE ONE CARRIER COURTED FOR THE ROLE HAS BEEN SOUTHWEST AIRLINES A FINANCIALLY HEALTHY US AIRLINE AND A LEADING 737 OPERATOR AMONG OTHERS COURTED TO BECOME BUYERS ARE FINNAIR SCANDANAVIA'S SAS NUMEROUS GERMAN AND UNITED KINGDOM CARRIERS AND TACA A BUYING GROUP FOR CENTRAL AMERICAN AIRLINES BOEING SHARES CLOSED YESTERDAY AT 3775 OFF 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9306290052 930629 HOUSE SPEAKER FOLEY FACES QUERIES OVER STOCK TRADES WASHINGTON FOR THE SECOND TIME IN FIVE YEARS HOUSE SPEAKER TOM FOLEY IS FACING QUESTIONS ABOUT PROFITS HE HAS EARNED FROM TRADING IN NEW STOCK ISSUES MR FOLEY CULLED PROFITS OF 32250 LAST YEAR FROM THE PURCHASE AND QUICK SALE OF STOCK IN INITIAL PUBLIC OFFERINGS BY 12 DIFFERENT COMPANIES ACCORDING TO A REPORT IN ROLL CALL A TWICEWEEKLY NEWSPAPER THAT COVERS CONGRESS MR FOLEY AT A PRESS BRIEFING YESTERDAY DISTANCED HIMSELF FROM THE STOCK PURCHASES I HAVE LOST MONEY AND MADE MONEY BUT FOR THE MOST PART I HAVE NOT MADE ANY SPECIFIC JUDGMENTS ABOUT STOCK TRADING HE SAID I HAVE TRUSTED MY INVESTMENT COUNSELOR PETER DE ROETTH TO MAKE THOSE DECISIONS AND HE HAS DONE SO I FEEL ABSOLUTELY THAT THEY HAVE BEEN APPROPRIATE AND PROPER AND ARE NOT ANY PROBLEM THE ROLL CALL ARTICLE REPORTED THAT ALL OF THE STOCK PURCHASES WERE MADE BY MR DE ROETTH A HIGH SCHOOL CLASSMATE OF MR FOLEY'S QUESTIONS ABOUT MR FOLEY'S TRADING IN INITIAL PUBLIC OFFERINGS WHICH ARE OFTEN OF QUITE RESTRICTED AVAILABILITY WERE ALSO RAISED IN 1988 BY THE WASHINGTON POST 9306290051 930629 BUSINESS BRIEF DIAL PAGE INC MOBILE RADIO NETWORK SET TO CROSS SOUTHERN STATES DIAL PAGE INC GREENVILLE SC SAID IT PLANS TO BUILD AN ENHANCED SPECIALIZED MOBILE RADIO NETWORK ACROSS FIVE SOUTHERN STATES THE COMPANY WHICH ALREADY OFFERS PAGING AND MESSAGE SERVICES IN THE SOUTHEAST SAID IT ENTERED INTO SEVERAL AGREEMENTS AND LETTERS OF INTENT TO ACQUIRE ENOUGH FREQUENCY TO CREATE THE NETWORK TERMS WEREN'T DISCLOSED SPECIALIZED MOBILE RADIO SYSTEMS TRADITIONALLY HAVE USED PART OF THE RADIO SPECTRUM TO COMMUNICATE WITH FLEETS SUCH AS DELIVERY SERVICES CONTRACTORS AND TAXICABS DIAL PAGE SAID ITS ENHANCED NETWORK WOULD PROVIDE SERVICE COMPARABLE TO CELLULAR PHONE SERVICE THE NEW SYSTEM ACCORDING TO DIAL PAGE WOULD COVER 16 MILLION PEOPLE IN NORTH CAROLINA SOUTH CAROLINA ALABAMA TENNESSEE AND EASTERN GEORGIA IN NATIONAL OVERTHECOUNTER TRADING DIAL PAGE ROSE 1 OR 93 TO 1175 A SHARE 9306290050 930629 IMF TO CLEAR LOAN TO RUSSIA OF 15 BILLION TOMORROW WASHINGTON THE INTERNATIONAL MONETARY FUND'S EXECUTIVE BOARD IS SCHEDULED TO APPROVE A 15 BILLION LOAN TO RUSSIA TOMORROW JUST IN TIME FOR THE GROUP OF SEVEN TO TAKE CREDIT FOR IT AT THE SUMMIT IN TOKYO NEXT WEEK SEPARATELY THE WHITE HOUSE SAID PRESIDENT CLINTON AND RUSSIAN PRESIDENT BORIS YELTSIN TALKED BY TELEPHONE FOR 30 MINUTES YESTERDAY AFTERNOON ABOUT RUSSIAN AIDRELATED ISSUES ON THE AGENDA FOR THE G7 SUMMIT AT THE URGING OF G7 NATIONS THE IMF ESTABLISHED A BORROWING FUND WITH LESS STRINGENT CONDITIONS THAN CONVENTIONAL IMF LOANS TO HELP FORMERLY COMMUNIST COUNTRIES BUILD MARKET ECONOMIES G7 NATIONS INCLUDE THE US CANADA BRITAIN FRANCE GERMANY ITALY AND JAPAN THE IMF WHICH SUPERVISES AN INTERNATIONAL MONEY SUPPLY TO STABILIZE INTERNATIONAL EXCHANGE AND PROMOTE BALANCED TRADE INSISTED THAT RUSSIA TAKE TANGIBLE STEPS TOWARD ECONOMIC REFORM BEFORE DISBURSING LOAN MONEY ON FRIDAY IMF MANAGING DIRECTOR MICHEL CAMDESSUS TOLD THE IMF BOARD THAT RUSSIA SUFFICIENTLY MOVED TO REDUCE COAL AND OTHER SUBSIDIES TO RAISE INTEREST RATES AND TO CURB STATE SPENDING THE FORMAL VOTE IS TOMORROW AFTERNOON RUSSIA IS ELIGIBLE FOR ANOTHER 15 BILLION FROM THE NEW FACILITY BUT ONLY AFTER TAKING ADDITIONAL STEPS TO CURB INFLATION RUSSIA ALSO IS TO BE ELIGIBLE FOR 4 BILLION IN IMF LOANS AFTER IT NEGOTIATES AN ECONOMICREFORM PLAN WITH THE IMF 9306290049 930629 INTERNATIONAL ARGENTINA SUCCEEDS IN SALE OF ITS OIL COMPANY STAKE SPECIAL TO THE WALL STREET JOURNAL BUENOS AIRES ARGENTINA LABELED AS EXTREMELY SUCCESSFUL THE SELLOFF OF A BIG PORTION OF ITS STATEOWNED OIL COMPANY YPF SA THE NUMBER OF SHARES OFFERED IN THE FLOTATION WAS INCREASED TO 160 MILLION OR 44 OF THE ENTIRE COMPANY FROM AN ORIGINAL 110 MILLION SHARES BECAUSE OF HEAVY INVESTOR INTEREST THE SHARES WERE PRICED AT 19 EACH MEANING ARGENTINA WILL RAISE 304 BILLION FROM THE STAKE THE GOVERNMENT PLANS TO USE THE PROCEEDS FROM THE SALE TO PAY OFF ITS DEBTS TO PENSIONERS OF THE SHARES 65 MILLION WERE OFFERED AS AMERICAN DEPOSITARY SHARES IN THE US AN ADDITIONAL 40 MILLION SHARES WERE OFFERED ELSEWHERE INTERNATIONALLY AND 35 MILLION WERE SOLD IN ARGENTINA THE UNDERWRITERS ALSO HAVE OPTIONS TO SELL AN ADDITIONAL 20 MILLION IF THERE IS DEMAND WHICH IS EXPECTED TO BE THE CASE IN A SECOND STAGE OF THE SELLOFF THE GOVERNMENT IS OFFERING YPF SHARES TO EMPLOYEES AND PENSIONERS THE PRIVATIZATION OF YPF FORMALLY KNOWN AS YACIMIENTOS PETROLIFEROS FISCALES BREAKS WITH A LONGHELD VIEW IN LATIN AMERICA THAT OIL IS A STRATEGIC RESERVE IN WHICH PRIVATE AND ESPECIALLY FOREIGN INVESTMENT ARE TABOO 9306290048 930629 UP FROM THE STREETS KWEISI MFUME BUILDS BLACK CAUCUS'S CLOUT WINS NOTICE IN CAPITAL MARYLAND DEMOCRAT LEADS A BLOC THAT HAS LEVERAGE ON BUDGET OTHER ISSUES EYEING A BROAD CONSTITUENCY BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHEN THE CHAIRMAN OF THE CONGRESSIONAL BLACK CAUCUS TOLD A WHITE HOUSE OFFICIAL HE COULDN'T ATTEND AN EVENING MEETING EARLIER THIS YEAR THE OFFICIAL EXPRESSED UNDERSTANDING A MUSLIM WOULD HAVE TO OBSERVE RAMADAN NOW WAIT A MINUTE AN AMUSED REP KWEISI MFUME REPLIED HE DOESN'T CELEBRATE THE ISLAMIC HOLY MONTH HE IS A BAPTIST AS THE EMBARRASSED WHITE HOUSE OFFICIAL LEARNED IT IS DANGEROUS TO ASSUME TOO MUCH ABOUT THE 44YEAROLD MARYLAND DEMOCRAT WHO HAS RISEN TO PROMINENCE THIS SPRING VOICING THE BLACK CAUCUS'S GRIEVANCES AGAINST PRESIDENT CLINTON MR MFUME NOT ONLY POSSESSES ONE OF CONGRESS'S MOST INTRIGUING BACKGROUNDS BUT ALSO HAS PERHAPS ITS MOST DISTINCTIVE NAME WHICH ACCORDING TO HIS BUSINESS CARD IS PRONOUNCED KWAHEESEE OOMFOOMAY THE PRECISE AND FORMAL LAWMAKER ONCE RAN THE STREETS OF HIS NATIVE BALTIMORE AND FATHERED FIVE CHILDREN OUT OF WEDLOCK THE YOUNG FIREBRAND WHO MADE HIS REPUTATION CHALLENGING THAT CITY'S WHITE POWER STRUCTURE NOW IS HAILED BY ITS DEMOCRATIC ESTABLISHMENT AS OUR SHINING STAR AS ONE JEWISH MATRON CALLED HIM AT A RECENT FUNDRAISER AND NOTWITHSTANDING HIS ADOPTED AFRICAN NAME AND CAUCUS PLATFORM MR MFUME IS A MAN WITH A BROADER CONSTITUENCY IN MIND HE MAY HAVE BLASTED MR CLINTON'S DECISION TO ABANDON THE JUSTICE DEPARTMENT NOMINATION OF LANI GUINIER BUT HIS OWN AMBITION TO CLIMB THE HOUSE LEADERSHIP LADDER BELIES THE PREOCCUPATION WITH RACE THAT DOOMED MS GUINIER'S APPOINTMENT YOU CAN REPRESENT EVERYBODY MR MFUME SAYS AND THE COLOR OF YOUR SKIN IS NOT SOME SORT OF BADGE OR INDICATOR OF THE LIMITEDNESS OF YOUR ABILITY IN THAT SENTIMENT MR MFUME MIRRORS THE CAUCUS HE HEADS AS NEGOTIATIONS OVER THE PRESIDENT'S ECONOMIC PLAN GET UNDER WAY AMONG THE HOUSE SENATE AND WHITE HOUSE THE CAUCUS HOLDS MORE LEVERAGE THAN EVER BEFORE JUST AS DEMOCRATIC LEADERS WERE FORCED TO ACCOMMODATE CONSERVATIVE DEMOCRATS TO MOVE THE DEFICITREDUCTION PACKAGE THROUGH THE SENATE LAST WEEK THEY WILL HAVE TO SATISFY THE CAUCUS AND DEMOCRATIC LIBERALS INTENT ON PROTECTING SOCIAL PROGRAMS TO WIN PASSAGE OF A FINAL COMPROMISE LATER THIS SUMMER AT 40 MEMBERS UP FROM 26 IN THE LAST CONGRESS IT ISN'T JUST THE BIGGEST BLACK CAUCUS IN HISTORY IT IS ALSO THE MOST RESOURCEFUL ITS SENIOR MEMBERS INCLUDE THREE CHAIRMEN OF FULL HOUSE COMMITTEES MEMBERS ALSO HEAD 13 SUBCOMMITTEES INCLUDING TWO EACH IN THE POWERFUL APPROPRIATIONS AND WAYS AND MEANS PANELS THE 53YEAROLD CIVILRIGHTS HERO JOHN LEWIS OF GEORGIA HAS JOINED THE HOUSE DEMOCRATIC LEADERSHIP AS A CHIEF DEPUTY WHIP AND THE CAUCUS'S FRESHMEN HAVE POSITIONED THEMSELVES TO BEGIN AFFECTING SPENDING TAXWRITING AND REGULATORY ISSUES IMPORTANT TO THEIR CONSTITUENTS ONE OF THEM REP EVA CLAYTON OF NORTH CAROLINA IS PRESIDENT OF THE ENTIRE FRESHMAN CLASS THESE NEW MEMBERS MANY OF THEM ELECTED FROM NEW BLACKMAJORITY DISTRICTS DRAWN DURING LAST YEAR'S REAPPORTIONMENT REFLECT THE STEADY ACCRETION OF BLACK POLITICAL INFLUENCE THAT HAS OCCURRED FROM CONGRESS TO LOCAL SCHOOL BOARDS SINCE THE VOTING RIGHTS ACT WAS PASSED NEARLY THREE DECADES AGO SINCE 1970 THE NUMBER OF BLACK ELECTED OFFICIALS NATIONWIDE HAS GROWN FIVEFOLD TO MORE THAN 7500 THE CAUCUS'S NEW FACES HAVE A GREATER IMPACT IN THE CAPITOL THAN THEIR PREDECESSORS THEY COME WITH MORE RELEVANT POLITICAL AND LEGISLATIVE SKILLS THAN THEY'VE HAD BEFORE SAYS EDDIE WILLIAMS DIRECTOR OF THE JOINT CENTER ON POLITICAL AND ECONOMIC STUDIES WHO CALLS THE TREND A SHIFT FROM THE POLITICS OF MARGINALITY TO THE POLITICS OF MAINSTREAM ALL THAT MAKES THE CAUCUS A GREATER FORCE FOR MR CLINTON AND CONGRESSIONAL LEADERS TO CONTEND WITH AS IN RECENT CONTROVERSIES OVER MS GUINIER AND THE BUDGET PLAN DESPITE RUMBLINGS OF DISSATISFACTION OVER MR CLINTON'S MOVES TOWARD THE POLITICAL CENTER FEW EXPECT THE CAUCUS TO ATTEMPT TO BLOCK THE ADMINISTRATION'S DEFICITCUTTING PACKAGE NOW BEING NEGOTIATED BY HOUSESENATE CONFEREES BUT THERE IS LITTLE DOUBT THE CAUCUS COULD IF IT TRIED AS MEMBERS DEMONSTRATED EARLIER THIS YEAR BY UNITING WITH REPUBLICANS TO TEMPORARILY DERAIL A LEADERSHIPBACKED VERSION OF THE PRESIDENTIAL LINEITEM VETO AT THE SAME TIME THE CAUCUS'S VERY BREADTH POSES A CHALLENGE TO MR MFUME AS WELL SO FAR THE CAUCUS HAS HELD TOGETHER ON MAJOR ECONOMIC VOTES BUT THE DIVERSITY OF CONSTITUENT INTERESTS AND PERSONAL AMBITIONS MAKE IT IMPOSSIBLE TO PRESENT A UNITED FRONT CONSISTENTLY SOME BLACK ANALYSTS SUCH AS HOWARD UNIVERSITY POLITICAL SCIENTIST RONALD WALTERS HAVE EVEN RAISED THE PROSPECT OF THE DEATH OF BLACK POLITICS AS THE CONCERNS OF AFRICANAMERICAN LAWMAKERS DISPERSE ACROSS THE POLITICAL LANDSCAPE THAT HASN'T HAPPENED YET BUT ON SUCH ISSUES AS HEALTHCARE REFORM ENVIRONMENTAL REGULATION AND GUN CONTROL THE CAUCUS'S NEW RURAL REPRESENTATIVES FACE DIFFERENT PRESSURES THAN THEIR URBAN COUNTERPARTS MOREOVER COURTED BY THE WHITE HOUSE AND BY DEMOCRATIC LEADERS NEWCOMERS AND SENIOR MEMBERS BRIDLE AT YIELDING INFLUENCE OR INDEPENDENCE TO ANY CAUCUS CHAIRMAN'S AGENDA WE CAN'T FIND UNANIMITY SAYS MR MFUME WHO CALLS HIS JOB AN EXTREME BALANCING ACT BUT THEN COPING WITH TURBULENCE IS NOTHING NEW FOR THE RESILIENT FOURTHTERM LAWMAKER WHO HAS ALWAYS ADAPTED TO SHIFTING CIRCUMSTANCES WILD YOUTH MR MFUME'S UPFROMTHESTREET RESUME IS ACTUALLY MORE COMPLICATED THAN IT MIGHT SEEM THOUGH NOT WELL OFF HE GREW UP NEAR THE CENTER OF BALTIMORE'S BLACK CULTURAL ELITE WHICH AT ONE TIME INCLUDED JAZZ SINGER BILLIE HOLIDAY HIS MOTHER WHO EMPHASIZED EDUCATION AND THE IMPORTANCE OF THE CIVILRIGHTS MOVEMENT HELD A BLUECOLLAR JOB AT A DEFENSE CONTRACTOR THAT LATER BECAME MARTIN MARIETTA CORP HIS STEPFATHER WAS A TRUCK DRIVER MR MFUME WAS FRIZZELL GRAY THEN A BRIGHT SCHOOLBOY WHOSE ACTIVITIES RANGED FROM THE BOY SCOUTS TO THE PHOTOGRAPHY CLUB BUT AT AGE 16 HIS WORLD FELL APART WHEN HIS CANCERSTRICKEN MOTHER DIED IN HIS ARMS HE DROPPED OUT OF SCHOOL TO HELP SUPPORT HIS THREE SISTERS BUT SOON REBELLED AND BEGAN FIGHTING AND CAROUSING SEEING AN EMPTY FUTURE HE EARNED A HIGHSCHOOL EQUIVALENCY DIPLOMA AND WENT ON TO MORGAN STATE UNIVERSITY SEEKING SOME DEFINING CULTURAL CHARACTERISTIC HE ADOPTED A NAME AN AUNT SUGGESTED AFTER A TRIP TO WEST AFRICA IT MEANS CONQUERING SON OF KINGS MR MFUME ALSO PURSUED A LONGSTANDING INTEREST IN RADIO HE FOUND WORK UNPAID AT FIRST AT A BLACKORIENTED STATION OWNED BY SOUL SINGER JAMES BROWN AFTER SPENDING HOURS POLISHING HIS DICTION AND TECHNIQUE MR MFUME BECAME A SUCCESSFUL DISK JOCKEY AND LATER A TALKSHOW HOST WITH A BENT FOR PROTEST POLITICS HIS RADIO POPULARITY LAID THE GROUNDWORK FOR MR MFUME TO WIN A BALTIMORE CITY COUNCIL SEAT IN 1978 HE IMMEDIATELY CLASHED WITH MAYOR DONALD SCHAEFER NOW MARYLAND'S GOVERNOR AND THE CITY'S POLITICAL ESTABLISHMENT HIS NAME ITSELF BECAME AN INSTRUMENT OF POLITICAL COMBAT AS ANTAGONISTS WOULD SOMETIMES MANGLE IT DELIBERATELY TO RATTLE HIM EVEN THEN HOWEVER MR MFUME SIGNALED TO WHITE VOTERS AND SOME POLITICIANS THAT HIS AGENDA WASN'T RACIALLY EXCLUSIVE HE DID SO EXPLICITLY AFTER HE WAS ELECTED IN 1986 TO SUCCEED RETIRING DEMOCRATIC REP PARREN MITCHELL A POPULAR BALTIMORE FIGURE WHO WAS AMONG THE FOUNDING MEMBERS OF THE BLACK CAUCUS AS A GESTURE OF INSTITUTIONAL COMMITMENT MR MFUME APPROACHED THENSPEAKER JIM WRIGHT AND VOLUNTEERED TO HELP PRESIDE OVER HOUSE SESSIONS A CHORE HE STILL SAVORS AS A CHANCE TO LEND DIGNITY AND DECORUM TO THE PROCEEDINGS IN HIS FOURTH TERM MR MFUME CAN'T MATCH THE CLOUT OF MORE SENIOR MEMBERS OF THE CAUCUS AND SOME COLLEAGUES SAY HE REMAINS SENSITIVE TO PERCEIVED SLIGHTS BUT HIS BUSINESSLIKE AND CONGENIAL STYLE MAKES HIM POPULAR IN THE HOUSE THERE'S NOTHING MILITANT ABOUT HIM SAYS GOP REP RICHARD ARMEY OF TEXAS THE COMBATIVE CONSERVATIVE WHO CHAIRS THE HOUSE REPUBLICAN CONFERENCE AND SERVES WITH MR MFUME ON THE JOINT ECONOMIC COMMITTEE WHEN HOUSE LEADERS SCRAMBLED LAST MONTH TO WIN VOTES FROM CONSERVATIVE DEMOCRATS FOR MR CLINTON'S ECONOMIC PROGRAM MR MFUME PATIENTLY NEGOTIATED INTO THE WEE HOURS TO MAKE SURE THEY DIDN'T BEND TOO FAR TOWARD FURTHER CUTS IN BENEFIT PROGRAMS HE ULTIMATELY COMPROMISED WITH TEXAS REP CHARLES STENHOLM AND BOTH DELIVERED CRUCIAL VOTES FOR THE PACKAGE HE UNDERSTANDS WORKING BEHIND THE SCENES GETTING THINGS DONE SAYS REP JOHN LAFALCE A NEW YORK DEMOCRAT AND HEAD OF THE SMALL BUSINESS COMMITTEE ON WHICH MR MFUME SITS BUT HE HAS BEEN RIGHT OUT FRONT SINCE THE LANI GUINIER EPISODE THOUGH THE CAUCUS WAS SLOW TO RALLY WHILE MS GUINIER WAS UNDER FIRE MR MFUME ANGRILY CRITICIZED THE PRESIDENT FOR PULLING HER NOMINATION HE SUGGESTED THE CAUCUS MIGHT WITHHOLD SUPPORT FOR THE STILLEVOLVING ECONOMIC PLAN AND THE GROUP PUT OFF A PLANNED WHITE HOUSE MEETING SNUBBING MR CLINTON'S ATTEMPTS AT FENCEMENDING NOT EVERYONE IN THE CAUCUS YEARNS FOR CONFRONTATION SOME MEMBERS HAVE GOT TO PROVE THEIR BLACKNESS LAMENTS MR LEWIS POTENTIALLY A RIVAL TO MR MFUME I DON'T SEE HOW YOU CAN BE IN THE BUSINESS OF RETRIBUTION LAST WEEK MR LEWIS WAS ONE OF THREE MEMBERS VOTING AGAINST THE CAUCUS'S DECISION TO OPPOSE THE ADMINISTRATIONBACKED NORTH AMERICAN FREE TRADE AGREEMENT FOR THE ADMINISTRATION THAT BLOW'S IMPACT IS LESSENED BY THE LIKELIHOOD THAT IT WILL PICK UP SOME GOP VOTES FOR NAFTA AND WHEN MR MFUME COMPLAINING OF SHIFTING WHITE HOUSE PRIORITIES RECENTLY OPPOSED THE ADMINISTRATION'S 25 BILLION RUSSIAN AID REQUEST ABOUT HALF OF THE CAUCUS DIDN'T FOLLOW FOR MR CLINTON AND HIS PARTY THE NIGHTMARE WOULD BE A RUPTURE WITH THE BLACK CAUCUS AND OTHER DEMOCRATIC LIBERALS OF THE SORT THAT HELPED CRIPPLE PRESIDENT CARTER'S REELECTION PROSPECTS IN 1980 MR MFUME WHO OFFERS NO APOLOGIES FOR BACKING SEN EDWARD KENNEDY'S PRIMARY CHALLENGE THAT YEAR SAYS HE WON'T PULL HIS PUNCHES TO PROTECT MR CLINTON FROM REPUBLICANS IF THE PRESIDENT STRAYS FROM DEMOCRATIC PRINCIPLES THOUGH MR MFUME DOESN'T CONTEND GOVERNMENT MONEY ALONE CAN SOLVE URBAN PROBLEMS THE CAUCUS'S ALTERNATIVE BUDGET OFFERED THIS SPRING BACKED DEEPER DEFENSE SPENDING CUTS AND HIGHER SOCIAL OUTLAYS THAN PROPOSED BY THE ADMINISTRATION MODERATE DEMOCRATS MAY FRET OVER THE PRESIDENT'S EARLY TILT TO THE POLITICAL LEFT BUT THE LIBERAL MR MFUME INSISTS THE LURCH IS TO THE RIGHT CITING MR CLINTON'S ABANDONMENT OF HIS ECONOMICSTIMULUS PLAN IN THE FACE OF GOP OPPOSITION ONE OF THE GREAT MISCALCULATIONS OF THE DEMOCRATIC PARTY IS THAT BLACKS HAVE NOWHERE ELSE TO GO SAYS MR MFUME IF WE COULD LIVE THROUGH REAGAN WE COULD LIVE THROUGH ANYBODY CRITICS SUGGEST THE MEDIASAVVY POLITICIAN IS MILKING THE CONTROVERSY FOR ITS CONSIDERABLE ATTENTIONGETTING VALUE AFTER A RECENT BLACK CAUCUS MEETING ATTENDED BY JESSE JACKSON REPORTERS AND CAMERAS FLOCKED TO MR MFUME AT THE COST OF THE REV JACKSON IN ANY CASE THERE IS NO DOUBT THAT MR MFUME WHO IS HOST OF AN HOURLONG BALTIMORE TV SHOW EACH WEEK HAS STAR QUALITY AND HIS WHITE CONSTITUENTS WHO INCREASED IN NUMBER WHEN REAPPORTIONMENT ADDED SUBURBS AND EVEN RURAL AREAS TO HIS DISTRICT HAVE JOINED BLACKS IN ENJOYING HIS NEWFOUND PROMINENCE HE'S NOW AS POPULAR AS PARREN MITCHELL IN HIS PRIME SAYS HARRISON HICKMAN A DEMOCRATIC POLLSTER WITHIN THE SPACE OF AN HOUR HE GOES FROM A FUNDRAISER FOR LT GOV MELVIN STEINBERG OF MARYLAND TO A TOWN MEETING IN A BLACK NEIGHBORHOOD WHERE THE AUDIENCE CHEERS HIS STERN POSTURE TOWARD THE WHITE HOUSE TO ANSWER CALLS FOR MORE SPENDING CUTS ONE MIFFED CONSTITUENT SUGGESTS TARGETING BENEFITS FOR FORMER PRESIDENTS A GRINNING MR MFUME DEMURS I MIGHT WANT TO RUN FOR PRESIDENT SOMEDAY HE SAID REP JOHN LEWIS SUPPORTED THE RECENT DECISION OF THE CONGRESSIONAL BLACK CAUCUS TO OPPOSE THE NORTH AMERICAN FREE TRADE AGREEMENT IN A PAGEONE ARTICLE YESTERDAY IT WAS INCORRECTLY STATED THAT THE GEORGIA DEMOCRAT OPPOSED THE CAUCUS'S DECISION BASED ON INFORMATION SUPPLIED BY THE BLACK CAUCUS CHAIRMAN'S OFFICE 9306290047 930629 PARKOHIO TO MAKE ACQUISITION CLEVELAND PARKOHIO INDUSTRIES INC SAID IT AGREED TO ACQUIRE CLOSELY HELD CLEVELAND CITY FORGE CO FOR UNDISCLOSED TERMS THE ACQUISITION IS SCHEDULED TO BE COMPLETE WITHIN ABOUT THREE WEEKS CLEVELAND CITY FORGE IS A MANUFACTURER OF MACHINEFORGED PRODUCTS FOR THE ELECTRIC UTILITY AND HIGHWAY CONSTRUCTION INDUSTRIES PARKOHIO MAKES FORGED MACHINE PRODUCTS AND HAS ANNUAL SALES OF ABOUT 45 MILLION 9306290046 930629 FIGURE IN BNL CASE SEEKS TO BAR US PROSECUTORS ATLANTA THE ATTORNEY FOR CHRISTOPHER P DROGOUL THE FORMER MANAGER OF THE ATLANTA BRANCH OF BANCA NAZIONALE DEL LAVORO ASKED A FEDERAL JUDGE TO DISQUALIFY THE DEPARTMENT OF JUSTICE FROM FURTHER PROSECUTION IN HIS CASE MR DROGOUL IS CHARGED WITH DEFRAUDING THE ROMEBASED BANK OF MORE THAN 215 BILLION THROUGH A SERIES OF ALLEGEDLY UNAUTHORIZED LOANS TO IRAQ ROBERT SIMELS HIS ATTORNEY ARGUED YESTERDAY IN FEDERAL DISTRICT COURT HERE THAT EVIDENCE SHOWS THE GOVERNMENT TAMPERED WITH THE CASE HE ARGUED THAT DIARIES KEPT BY THE BANK'S CHIEF COUNSEL PAULO DE VITO SHOWED THAT FEDERAL PROSECUTORS IN ATLANTA HAD LEAKED INFORMATION TO ROME OFFICIALS OF THE BANK MR SIMELS ARGUED THAT IF JUDGE G ERNEST TIDWELL DECIDED NOT TO DISQUALIFY THE JUSTICE DEPARTMENT HE SHOULD REQUEST THE DEPARTMENT TO APPOINT A SPECIAL PROSECUTOR IN THE CASE WHICH IS SCHEDULED FOR TRIAL LATER THIS YEAR FIVE OTHER DEFENDANTS IN THE BNL CASE HAVE FILED GUILTY PLEAS AND ARE SCHEDULED TO BE SENTENCED IN AUGUST THE PROSECUTION IN BOTH CASES HAS BEEN SLOWED BY ARGUMENTS OVER HOW MANY SECRET DOCUMENTS THE US SHOULD REVEAL IN COURT 9306290045 930629 LAW LEGAL BEAT SLUMP HITS ELITE FIRMS SURVEY SHOWS BY ELLEN JOAN POLLOCK A CLOSELY FOLLOWED SURVEY OF THE LEGAL PROFESSION SHOWS THAT ELITE LAW FIRMS WERE HIT HARD BY THE RECESSION AND THAT ECONOMIC RECOVERY FOR ALL LARGE FIRMS MAY BE A LONG TIME COMING THE AMERICAN LAWYER MAGAZINE'S ANNUAL RANKING OF THE 100 TOPGROSSING LAW FIRMS WHICH IS BEING PUBLISHED THIS WEEK WILL MAKE DISCOURAGING READING FOR LAW FIRM MANAGERS DESPITE EARLIER PREDICTIONS THAT BIG SUCCESSFUL LAW FIRMS WOULD SUFFER ONLY MILD REVERSES THE SOCALLED AM LAW 100 PROVIDES AMPLE EVIDENCE THAT THEY ARE STUCK IN THE DOLDRUMS AND LAW FIRM MANAGEMENT SPECIALISTS SAY RELIEF ISN'T ON THE WAY THEY CITE THE SURVEY RESULTS AS PROOF THAT THE REBELLION BY CORPORATIONS AGAINST SPIRALING LEGAL COSTS IS FINALLY SUCCEEDING THAT OF COURSE TRANSLATES INTO LOWER OR FLAT BOTTOM LINES FOR LAW FIRMS TOP FIRMS IN MOST MAJOR CITIES ARE STRUGGLING ACCORDING TO THE AMERICAN LAWYER FOR EXAMPLE TWO MAJOR NEW YORK FIRMS HAD SIGNIFICANT DECLINES LAST YEAR IN THEIR PROFITS PER PARTNER A STATISTIC USED TO MEASURE PROFITABILITY CRAVATH SWAINE & MOORE'S PROFITS PER PARTNER FELL ALMOST 5 AND WACHTELL LIPTON ROSEN & KATZ'S DECLINED ABOUT 14 TOP FIRMS IN OTHER CITIES POSTED SIMILAR DECREASES IN CHICAGO KIRKLAND & ELLIS SHOWED A 21 DROP IN PROFITS PER PARTNER AND LOS ANGELES LAW FIRM LATHAM & WATKINS HAD A DECREASE OF ALMOST 12 MORRISON & FOERSTER A MAJOR SAN FRANCISCO LAW FIRM SAW A DECLINE OF ALMOST 32 IN PERPARTNER PROFITS EVEN SKADDEN ARPS MEAGHER SLATE & FLOM WHICH HAD RANKED FIRST IN REVENUE SINCE THE SURVEY'S FOUNDING IN 1985 HAS SLIPPED TO SECOND IT WAS PASSED ON THE AM LAW 100 CHARTS BY INTERNATIONAL LAW FIRM BAKER & MCKENZIE WITH 5035 MILLION IN REVENUE BAKER & MCKENZIE BESTED SKADDEN ARPS BY MORE THAN 63 MILLION OF COURSE NONE OF THE PARTNERS IN THESE TOPTIER FIRMS IS GOING HUNGRY AND FEW WILL HAVE TO SELL THEIR SECOND HOMES FIVE LAW FIRMS INCLUDING CRAVATH AND WACHTELL LIPTON HAD PROFITS PER PARTNER OF 1 MILLION OR MORE AND THE AVERAGE PARTNER PROFIT FOR THE 100 LAW FIRMS ON THE LIST WAS A HEALTHY 406000 BUT THAT WAS FAR BELOW THE 1989 FIGURE OF 433000 THE HIGHEST AVERAGE PROFITS PER PARTNER SINCE AMERICAN LAWYER BEGAN THE ANNUAL SURVEY AND THERE ARE PLENTY OF OTHER SIGNS THAT THE GRAVY DAYS FOR BIG FIRMS HAVE STALLED FOR YEARS LAW FIRMS OF MORE THAN 100 LAWYERS ENJOYED SOARING REVENUE AND PROFITS IN 1988 TOTAL GROSS REVENUE FOR ALL THE FIRMS IN THE AM LAW 100 JUMPED 23 FROM THE PREVIOUS YEAR THE NEXT YEAR IT ROSE 18 BUT FOR THE PAST TWO YEARS REVENUE HAS GONE UP AN ANEMIC 3 AND AVERAGE PERPARTNER PROFITS LIMPED FORWARD LAST YEAR ONLY 15 FAILING TO KEEP PACE WITH INFLATION SMALLER FIRMS AREN'T INCLUDED IN THE SURVEY WARD BOWER A LAW FIRM CONSULTANT SAYS THAT SMALLER FIRMS HAVE ALREADY HIT BOTTOM AND NOW ARE REBOUNDING MR BOWER SAYS A SURVEY CONDUCTED BY HIS CONSULTING FIRM ALTMAN WEIL PENSA OF NEWTOWN SQUARE PA FOUND THAT LAW FIRMS OF NINE OR FEWER PARTNERS POSTED PERPARTNER PROFIT GAINS OF 125 LAST YEAR BUT HE SAYS BIG FIRMS ARE STILL TRYING TO SEE WHERE THE BOTTOM IS HE PREDICTED THAT MOST OF THEM WILL BOTTOM OUT IN THE 1993 FISCAL YEAR IF THEY DON'T THEY'RE IN BIG TROUBLE MR BOWER AND STEVEN BRILL THE EDITOR IN CHIEF OF THE AMERICAN LAWYER SAY THAT EVEN WITHOUT A RECESSION THE ERA OF EXPLOSIVE PROFITS WOULD HAVE COME TO AN END FOR TOP FIRMS SAVVY CORPORATIONS ARE NOW DEMANDING DISCOUNTS AND OTHER INNOVATIVE BILLING ARRANGEMENTS FROM THEIR LAWYERS THIS MARKET IS GETTING TO BE MUCH PICKIER AND SMARTER ABOUT WHAT IT'S BUYING SAYS MR BRILL NO SIGNIFICANT CLIENTS ARE EVER GOING TO PAY FOR HUGE SQUADRONS OF LAWYERS DOING MAKEWORK IN FACT SOME LAW FIRMS BLAME THEIR DECLINING PROFITS ON THEIR EFFORTS TO MEET NEW MARKET DEMANDS ERNEST L SCHMIDER A PARTNER AT LATHAM & WATKINS SAYS HIS FIRM NO LONGER MAKES A PROFIT ON SERVICES SUCH AS FAXES AND PHOTOCOPYING PET PEEVES OF MANY CORPORATE CLIENTS MR SCHMIDER SAYS THE CHANGE IN POLICY COST THE LAW FIRM ABOUT 8 MILLION LAST YEAR WE WERE HEARING PRETTY CLEARLY FROM OUR CLIENTS THAT THEY WERE HAVING TO CUT BACK AND THEY DIDN'T THINK THERE OUGHT TO BE A PROFIT IN THOSE ELEMENTS HE SAYS IT'S REALLY COMPETITIVE AND THERE'S LESS WORK TO GO AROUND SO YOU DO WHAT YOU CAN TO PROVE THAT YOU WANT IT THE MOST IN TERMS OF PRICE MR SCHMIDER ADDS THERE'S A FEELING THAT CLIENTS APPRECIATE SHARED SACRIFICE DONALD G KEMPF JR A PARTNER AT KIRKLAND & ELLIS BLAMES HIS FIRM'S LOWER PERPARTNER PROFITS ON A VARIETY OF CREATIVE BILLING ARRANGEMENTS HE SAYS THAT IN SOME LITIGATION THE FIRM HAS AGREED TO SHARE THE RISK WITH ITS CLIENTS THE FIRM DIDN'T BILL FOR MORE THAN 2 MILLION OF WORK LAST YEAR HE SAYS BUT UNDER A CONTINGENCY FEETYPE ARRANGEMENT IT WILL RECOUP MORE THAN 10 MILLION IN FEES IF SOME COURT VICTORIES STAND ON APPEAL SOME FIRMS ARE SIMPLY SHRUGGING OFF THE AM LAW 100 RESULTS PETER MULLEN THE EXECUTIVE PARTNER AT SKADDEN ARPS SAYS THAT HIS FIRM'S SLIP FROM FIRST PLACE IN REVENUE DOESN'T CONCERN US AT ALL OUR GOAL IS NOT TO BE THE LARGEST IN ANY CATEGORY LATHAM & WATKINS ONE OF THE NATION'S LARGEST LAW FIRMS IS IN HOT WATER WITH THRIFT REGULATORS FOR ITS ROLE IN THE 1988 LEVERAGED BUYOUT OF JIM WALTER CORP LED BY KOHLBERG KRAVIS ROBERTS & CO THE LAW FIRM PROVIDED AN OPINION LETTER FOR THE BUYOUT STATING THAT THE BUILDINGPRODUCTS COMPANY COULD PROTECT ITSELF FROM POTENTIAL ASBESTOS CLAIMS BY SELLING ONE OF ITS SUBSIDIARIES ABOUT A YEAR AFTER THE BUYOUT HOWEVER JIM WALTER RENAMED HILLSBOROUGH HOLDINGS CORP FILED FOR BANKRUPTCYCOURT PROTECTION IN PART BECAUSE OF A MASSIVE SUIT FILED AGAINST IT BY ASBESTOS VICTIMS NOW THE RESOLUTION TRUST CORP HAS FILED A LAWSUIT IN FEDERAL COURT IN NEW YORK CLAIMING THAT THE OPINION LETTER WAS FRAUDULENT THE SUIT ALLEGED THAT THE LETTER WAS DESIGNED TO INDUCE INVESTORS TO BUY THE JUNK BONDS ISSUED FOR THE LEVERAGED BUYOUT WHILE THE RTC HAS SUED LAW FIRMS IN THE PAST FOR WORK THEY HAVE DONE ON BEHALF OF FAILED SAVINGS AND LOANS THIS SUIT IS UNUSUAL BECAUSE LATHAM & WATKINS DIDN'T DO ANY WORK FOR THE FOUR S&LS THAT THE RTC SAYS WERE HURT INSTEAD THE RTC IS SEEKING 47 MILLION IN DAMAGES FOR THE THRIFTS' LOSSES ON THEIR HILLSBOROUGH JUNKBOND HOLDINGS THE THRIFTS SOLD THE JUNK BONDS ABOUT SIX MONTHS AGO LATHAM & WATKINS CALLED THE LAWSUIT OUTRAGEOUS VICTOR ANTOLA A PARTNER IN THE LOS ANGELES OFFICE OF THE 600LAWYER FIRM SAID WE STAND BEHIND THE WORK WE DID AND THE OPINION WE GAVE LEON SILVERMAN AN ATTORNEY AT FRIED FRANK HARRIS SHRIVER & JACOBSON WHO REPRESENTS LATHAM & WATKINS IN THE MATTER SAID THE SUIT IS AN EXAMPLE OF THE RTC OVERREACHING IT IS UNWARRANTED AND IT SHOULD NEVER HAVE BEEN BROUGHT MEANWHILE A TRIAL IS SCHEDULED IN DECEMBER IN BANKRUPTCY COURT TO DETERMINE WHETHER THE ASBESTOS CLAIMANTS HAVE THE RIGHT TO SUE HILLSBOROUGH THE SUBSIDIARY WAS SOLD SHORTLY AFTER THE LEVERAGED BUYOUT AND WAS RENAMED CELOTEX CORP WHICH IS ALSO IN BANKRUPTCYCOURT PROCEEDINGS JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9306290044 930629 BILL ON SECURITIES TRADING SEEN LIKELY TO BE APPROVED WASHINGTON LEGISLATION THAT WOULD MAKE IT EASIER FOR REGIONAL STOCK EXCHANGES TO TRADE SECURITIES LISTED ON THE NEW YORK AND AMERICAN STOCK EXCHANGES HAS A GOOD CHANCE OF PASSAGE IN THIS SESSION OF CONGRESS REP RON WYDEN SAID MR WYDEN AN OREGON DEMOCRAT HAS INTRODUCED LEGISLATION THAT WOULD DO AWAY WITH THE REQUIREMENT THAT REGIONAL EXCHANGES OBTAIN CLEARANCE FROM THE SECURITIES AND EXCHANGE COMMISSION BEFORE TRADING IN NYSE AND AMEXLISTED STOCKS MR WYDEN SAID HE IS OPTIMISTIC ABOUT THE BILL'S FUTURE BECAUSE HIS 11 COSPONSORS INCLUDE BOTH DEMOCRATIC AND REPUBLICAN COLLEAGUES FROM THE HOUSE ENERGY AND COMMERCE COMMITTEE AT THIS POINT WE DON'T SEE ANY OPPOSITION MR WYDEN SAID WE'VE ALREADY GOT THE NEW YORK STOCK EXCHANGE AND THE AMEX ON THE RECORD SAYING THEY DON'T HAVE A PROBLEM CURRENT RULES REQUIRE THE REGIONAL EXCHANGES TO OBTAIN THE SEC'S PERMISSION TO TRADE IN STOCKS LISTED ON OTHER EXCHANGES THE PERMISSION PROCESS WHICH REQUIRES THE SEC TO GIVE WRITTEN NOTICE THAT SUCH PERMISSION IS BEING SOUGHT TYPICALLY LASTS SIX TO EIGHT WEEKS 9306290043 930629 BUSINESS BRIEF SKYLINK AMERICA INC COMPANY AQUIRES ST CHARLES IN DEAL VALUED AT 11 MILLION SKYLINK AMERICA INC SAID IT HAD ACQUIRED CLOSELY HELD ST CHARLES GAMING CO IN EXCHANGE FOR 500000 IN CASH AND 16 MILLION NEWLY ISSUED SKYLINK COMMON SHARES THE DEAL IS VALUED AT ABOUT 11 MILLION EARLIER THIS MONTH THE LOUISIANA RIVERBOAT GAMING COMMISSION GRANTED ST CHARLES GAMING A LICENSE TO BUILD AND OPERATE A RIVERBOAT CASINO ON THE WEST BANK OF THE MISSISSIPPI RIVER NEAR NEW ORLEANS BEFORE THAT SKYLINK IN DALLAS HAD ANNOUNCED THAT IT WOULD PROVIDE FUNDS TO ST CHARLES TO BUILD AND OPERATE SUCH A CASINO BUT SKYLINK A PROVIDER OF PAYPERVIEW PROGRAMMING TO HOTELS AND MOTELS HAS NOT PREVIOUSLY DISCLOSED THAT IT PLANNED TO ACQUIRE ST CHARLES SKYLINK SAID GERALD L ADAMS WILL REMAIN PRESIDENT AND CHIEF OPERATING OFFICER OF ST CHARLES GAMING WHICH WILL BECOME A WHOLLY OWNED SUBSIDIARY OF SKYLINK MR ADAMS WILL ALSO BE NOMINATED FOR A SEAT ON SKYLINK'S BOARD SKYLINK SAID 9306290042 930629 BUSINESS BRIEF HEALTH PROFESSIONALS INC AUDITOR QUITS CITES DISPUTE OVER TESTS OF AIDS DRUG ERNST & YOUNG RESIGNED AS THE FINANCIAL AUDITOR FOR HEALTH PROFESSIONALS INC BECAUSE OF A DISPUTE INVOLVING THE COMPANY'S TESTING OF AN AIDSFIGHTING DRUG A SPOKESWOMAN FOR HEALTH PROFESSIONALS SAID THE COMPANY LAST WEEK ATTRIBUTED A DECLINE IN ITS SHARE PRICE TO A NEWSLETTER ARTICLE THAT SAID THE FOOD AND DRUG ADMINISTRATION WAS LOOKING INTO ALLEGATIONS BY A FORMER EMPLOYEE THAT THE COMPANY HAD ALTERED DATA IN TESTS OF AN AIDS DRUG THE COMPANY SAID IT HAD SUED THE NEWSLETTER AND CALLED THE FDA INTEREST A ROUTINE INQUIRY ERNST & YOUNG WASN'T AVAILABLE FOR COMMENT HEALTH PROFESSIONALS FT LAUDERDALE FLA RUNS A NETWORK OF RESEARCH AND PRIMARYCARE FACILITIES SPECIALIZING IN IMMUNESYSTEM DISORDERS IN COMPOSITE AMERICAN STOCK EXCHANGE TRADING HEALTH PROFESSIONALS SHARES CLOSED AT 25625 UP 3125 CENTS OR 14 9306290040 930629 BUSINESS BRIEF SUNBEAMOSTER CO OUSTED CHIEF FILES MOTION ABOUT MISSING DOCUMENTS PAUL B KAZARIAN THE OUSTED CHIEF OF SUNBEAMOSTER CO WILMINGTON DEL ALLEGED IN A MOTION FILED FRIDAY THAT MISSING DOCUMENTS HE SAYS HE NEEDS TO FIGHT HIS DISMISSAL WERE DESTROYED INTENTIONALLY THE MOTION IN DELAWARE CHANCERY COURT SEEKS DISMISSAL OF A SUIT FILED BY INVESTORS IN SUNBEAM THAT SOUGHT MR KAZARIAN'S REMOVAL AS GENERAL PARTNER OF SUNBEAM OSTER EQUITIES A PARTNERSHIP THAT HAS CONTROLLED THE PROVIDENCE RIBASED MAKER OF HOME APPLIANCES STEVEN LAMB AN ATTORNEY WITH SKADDEN ARPS WHO IS AMONG THE PEOPLE NAMED IN THE MOTION LAST NIGHT SAID HE WOULD RESPOND TO THE ALLEGATIONS ONLY IN COURT LATER THIS WEEK SUNBEAM SAID EARLIER THIS MONTH THAT THE DOCUMENTS WERE DISCARDED BECAUSE OF THE CARELESSNESS OF CERTAIN EMPLOYEES IN THE MOTION MR KAZARIAN CHARGES THERE IS SUBSTANTIAL EVIDENCE THE DOCUMENTS WERE DESTROYED INTENTIONALLY AND ALLEGES A COVERUP 9306290039 930629 INTERNATIONAL BRIEF KIRIN BREWERY CO BEER MAKER PLANS SPENDING TO INCREASE PLANT CAPACITY KIRIN BREWERY CO ONE OF JAPAN'S FOUR BIGGEST BEER MAKERS PLANS TO SPEND MORE THAN 35 BILLION YEN 3299 MILLION BY THE END OF NEXT YEAR TO EXPAND CAPACITY AND IMPROVE PRODUCTIVITY DESPITE A SLUGGISH ECONOMY KIRIN HAS BEEN MAKING HEFTY OUTLAYS TO MODERNIZE FACTORIES IN EXPECTATION OF STEADY GROWTH IN DEMAND FOR BEER FOR A PLANT IN NAGOYA IN CENTRAL JAPAN THE BREWER HAS DETAILED ITS NINEYEAR OVERHAUL PLAN STARTED LAST YEAR TO EXPAND BEERMAKING CAPACITY TO 340 MILLION LITERS 884 MILLION GALLONS A YEAR BY 1994 FROM THE CURRENT 290 MILLION LITERS AT A TOTAL COST OF 3530 BILLION YEN THE PLAN ALSO CALLS FOR FURTHER INCREASE OF CAPACITY TO 360 MILLION LITERS BY 1996 IN ADDITION KIRIN WILL SPEND ROUGHLY EIGHT BILLION YEN TO BUILD A DISTRIBUTION CENTER NEAR ITS PLANT IN YOKOHAMA ON THE OUTSKIRTS OF TOKYO A SPOKESMAN SAID CONSTRUCTION IS DUE TO FINISH BY 1995 THE SPOKESMAN SAID KIRIN FORESEES OVERALL OUTLAYS ON PLANT AND EQUIPMENT THIS YEAR AT 98 BILLION YEN UP FROM 932 BILLION YEN LAST YEAR 9306290038 930629 INTERNATIONAL BRIEF AGIP SPA OIL COMPANY WILL BE SOLD WITHOUT CHEMICAL BUSINESS ITALY'S STATECONTROLLED OIL COMPANY AGIP SPA WILL BE SOLD WITHOUT THE CHEMICAL OPERATIONS OF ENICHEM SPA THE PETROCHEMICAL ARM OF ENI THE STATE ENERGY HOLDING COMPANY ENI IS AGIP'S PARENT ENICHEM WON'T BE PART OF THE PRIVATIZATION OF AGIP ENI MANAGING DIRECTOR FRANCO BERNABE TOLD A NEWS CONFERENCE IN BRINDISI INSTEAD ONLY THE UPSTREAM ACTIVITIES OF AGIP AND THE DOWNSTREAM ACTIVITIES OF AGIP PETROLI SPA WILL BE REORGANIZED AND BROUGHT TO THE STOCK MARKET IN THE FIRST MONTHS OF 1994 MR BERNABE'S COMMENTS MARK THE FIRST TIME ENI HAS CLARIFIED ITS INTENTIONS TO REMOVE THE DEBTLADEN PETROCHEMICAL COMPANY FROM ITS PRIVATIZATION OF AGIP MR BERNABE ALSO SAID THAT ENI WHICH STANDS FOR ENTE NAZIONALE IDROCARBURI SHOULD RETURN TO PROFITIBILITY IN 1994 BUT HE DIDN'T GIVE A FORECAST FOR 1993 RESULTS WHICH ARE EXPECTED TO BE IN THE RED ENI'S INVOLVEMENT IN A WIDESPREAD BRIBERY AND CORRUPTION SCANDAL IN ITALY HAS WREAKED HAVOC ON THE GROUP'S MANAGEMENT STRUCTURE FROM THE TOP ON DOWN 9306290037 930629 WHAT'S NEWS WORLDWIDE THE SUPREME COURT SAID RACIAL REDISTRICTING MAY VIOLATE WHITES' RIGHTS THE JUSTICES IN A 54 RULING REINSTATED A LAWSUIT CHALLENGING NORTH CAROLINA'S FORMATION OF TWO DISTRICTS IN WHICH BLACK VOTERS ENJOYED ELECTORAL MAJORITIES THE JUSTICES SAID STATES MAY BE VIOLATING THE RIGHTS OF WHITE VOTERS BY PURPOSELY DESIGNING CONGRESSIONAL DISTRICTS SO THAT MINORITIES CAN EXERCISE ELECTORAL POWER BUT THEY STOPPED SHORT OF SAYING THE CREATION OF MINORITYDOMINATED DISTRICTS AUTOMATICALLY VIOLATES THE CONSTITUTION IN ANOTHER DECISION THE COURT RULED UNANIMOUSLY IN A SOUTH DAKOTA CASE THAT THE CONSTITUTION LIMITS THE AMOUNT OF MONEY AND PROPERTY AUTHORITIES MAY SEIZE FROM DRUG DEALERS IRAQ VOWED REVENGE AS THE US WARNED BAGHDAD NOT TO RETALIATE AN IRAQI PROTEST WAS LODGED WITH THE UN SECURITY COUNCIL ACCUSING THE US OF STATE TERRORISM AND BLACKMAIL AFTER A WEEKEND ATTACK ON BAGHDAD'S INTELLIGENCE HEADQUARTERS IRAQ'S INTELLIGENCE CHIEF SAID HE WOULDN'T ALLOW THE MISSILE ATTACK TO GO UNPUNISHED VICE PRESIDENT GORE WARNED IT WOULD BE UNWISE FOR IRAQ'S SADDAM HUSSEIN TO RETALIATE IN ANY CAPACITY BECAUSE IT WOULD PROVOKE A RESPONSE BY THE US A HOUSE PANEL SAID IRAQ APPEARS TO HAVE REBUILT MUCH OF ITS CONVENTIONAL WEAPONS COMPLEX THAT WAS DESTROYED IN THE GULF WAR INCLUDING ITS ARSENAL OF TANKS ARTILLERY AND COMBAT AIRCRAFT SERBS AND CROATS AGREED ON A NATIONWIDE TRUCE AND TROOP PULLBACK IN BOSNIA THAT WOULD TAKE EFFECT IF ALL THREE WARRING FACTIONS CAN WORK OUT A MAP FOR THREE MINISTATES SOME MUSLIM OFFICIALS WHO HAVE ATTENDED THE GENEVA TALKS SAID THEY WOULD RETURN TO SARAJEVO TO CONFER TODAY WITH BOSNIA'S PRESIDENT IZETBEGOVIC A MUSLIM A NEW FEDERAL TASK FORCE WAS FORMED TO HUNT FOR THE SOCALLED UNIVERSITY BOMBER BELIEVED RESPONSIBLE FOR ATTACKS SPANNING 15 YEARS A PREVIOUS TASK FORCE QUIT IN 1990 AFTER THREE YEARS PASSED WITHOUT A BOMBING THE ATTACKS RESUMED LAST WEEK WITH MAIL BOMBINGS THAT INJURED TWO PROFESSORS HAITIAN POLITICAL TALKS CAME CLOSE TO BREAKING DOWN BECAUSE MILITARY LEADER CEDRAS INSISTED THAT HE MAINTAIN CONTROL OF THE ARMY AS PART OF THE RESTORATION OF CIVILIAN RULE SOURCES SAID GEN CEDRAS AND OUSTED PRESIDENT ARISTIDE HAVE BEEN MEETING IN NEW YORK SINCE SUNDAY US HELICOPTER GUNSHIPS FIRED ON A CROWD OF ARMED SOMALIS IN MOGADISHU KILLING AT LEAST TWO PEOPLE AFTER A PAKISTANI PEACEKEEPER DIED IN A SNIPER ATTACK IT WAS THE LATEST IN A STRING OF CLASHES INVOLVING UN TROOPS AND SOMALIS THE HOUSE ENDORSED A PANEL'S RECOMMENDATION THAT THE SELECTIVE SERVICE SYSTEM BE TERMINATED WITH AGENCY RECEIVING ONLY 5 MILLION TO BE USED TO CLOSE DOWN THE SYSTEM THE SENATE MUST VOTE ON THE BILL THE HEAD OF A PROISRAEL GROUP QUIT UNDER PRESSURE OVER A QUOTE IN A NEW BOOK IN WHICH HE SPOKE DISPARAGINGLY ABOUT ULTRAORTHODOX JEWS THOMAS DINE RESIGNED AS EXECUTIVE DIRECTOR OF THE AMERICAN ISRAEL PUBLIC AFFAIRS COMMITTEE THE WHITE HOUSE HAS BEGUN EXAMINING CANDIDATES TO SUCCEED FBI DIRECTOR SESSIONS WHO HAS SAID HE WILL STAY IN OFFICE DESPITE ACCUSATIONS OF ETHICAL LAPSES OFFICIALS SAID WHITE HOUSE AIDES SAID THE CANDIDATE SEARCH DOESN'T NECESSARILY MEAN A FINAL DECISION HAS BEEN REACHED ON SESSIONS'S FATE AN AIDS COMMISSION DISBANDED PRESENTING A REPORT THAT EXPRESSED FRUSTRATION OVER THE SLOW PROGRESS IN FIGHTING THE DISEASE THE PANEL WAS ESPECIALLY CRITICAL OF THE BUSH ADMINISTRATION THE SPACE STATION SURVIVED ITS SECOND CHALLENGE IN AS MANY WEEKS AS THE HOUSE APPROVED FULL FUNDING FOR THE SCALEDBACK DESIGN EMBRACED BY THE WHITE HOUSE THE 220192 VOTE SERVES TO STABILIZE POLITICAL SUPPORT FOR THE PROGRAM THE MISSISSIPPI RIVER WAS CLOSED TO TRAFFIC ALONG A 500MILE STRETCH FOLLOWING A WEEK OF RECORDBREAKING RAINFALL ACROSS THE MIDWEST BARGES FROM ST PAUL MINN TO ST LOUIS WERE SIDELINED BY LOCK CLOSINGS BAIL WAS REFUSED FOR ONE OF EIGHT MEN ACCUSED OF PLOTTING TO BLOW UP SITES IN NEW YORK AFTER A PROSECUTOR SAID EVIDENCE INCLUDED VIDEOTAPES SHOWING THE SUSPECT HELPING IN THE BOMBMAKING PROCESS KURDISH GUERRILLAS STEPPED UP THEIR SUMMER OFFENSIVE IN TURKEY FIRING AT TOURISTS ON A PASSENGER TRAIN AND CLASHING WITH SECURITY FORCES AT FOUR LOCATIONS IN THE SOUTHEASTERN PART OF THE COUNTRY THE ATTACK ON THE TRAIN WOUNDED SIX CIVILIANS 9306290036 930629 BUSINESS BRIEF SENSORMATIC ELECTRONICS CORP COMPANY AND RIVAL REACH PACT ON USE OF TECHNOLOGIES SENSORMATIC ELECTRONICS CORP MAKING A PARTIAL PEACE WITH A RIVAL SAID IT ENTERED AN AGREEMENT THAT WILL ALLOW IT AND CHECKPOINT SYSTEMS INC TO USE EACH OTHER'S THEFTPREVENTION TECHNOLOGIES DEERFIELD BEACH FLABASED SENSORMATIC ALSO SAID IT WILL DROP A LAWSUIT CHARGING CHECKPOINT WITH FALSE AND MISLEADING ADVERTISING AND THE TWO COMPANIES SAID THEY AGREED NOT TO ENGAGE IN NEGATIVE ADVERTISING OR NEGATIVE SELLING ACTIVITIES EARLIER THIS YEAR THE NATIONAL ASSOCIATION OF RECORDING MERCHANDISERS RECOMMENDED SENSORMATIC'S ACOUSTOMAGNETIC TECHNOLOGY AS THE STANDARD FOR USE WITH COMPACT DISKS VIDEOTAPES AND SOME AUDIOTAPES CHECKPOINT SYSTEMS HAS FOUGHT THE RECOMMENDATION AND HAS CLAIMED SENSORMATIC'S TAGS CAN DISTORT TAPE RECORDINGS WHEN DEACTIVATED BUT CHECKPOINT SYSTEMS HAS ENTERED A LICENSING AGREEMENT THAT ALLOWS IT TO USE SENSORMATIC'S TECHNOLOGY IN CONNECTION WITH THE NARM'S LABELING PROGRAM BY PAYING A 10 ROYALTY EACH COMPANY AGREED TO LICENSE ITS TECHNOLOGY TO THE OTHER UNDER SIMILAR TERMS WHEN OTHER RETAILINDUSTRY GROUPS MAKE THEIR SELECTIONS 9306290035 930629 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JUNE 16 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9306290034 930629 BUSINESS BRIEF BC GAS INC REORGANIZATION IS PLANNED TO SEPARATE REGULATED LINES BC GAS INC VANCOUVER BRITISH COLUMBIA PLANS TO REORGANIZE THE COMPANY EFFECTIVE JULY 1 UNDER THE TERMS OF THE REORGANIZATION PROPOSAL HOLDERS OF BC GAS WOULD BECOME SHAREHOLDERS OF A NUMBERED COMPANY WHICH WOULD THEN CHANGE ITS NAME TO BC GAS INC THE CURRENT BC GAS INC WOULD CHANGE ITS NAME TO BC GAS UTILITY LTD THE COMPANY SAID THAT AS PART OF THE REORGANIZATION ALL BUT TWO OF ITS UNITS WOULD BECOME SUBSIDIARIES OF THE NEW BC GAS INC IT SAID THAT AFTER THE REORGANIZATION PREFERENCE SHARES PURCHASE MONEY MORTGAGES AND DEBENTURES WOULD REMAIN SECURITIES OF BC GAS UTILITY LTD BC GAS UNDERTOOK THE REORGANIZATION TO SEPARATE THOSE OF ITS BUSINESSES THAT ARE REGULATED BY THE BRITISH COLUMBIA UTILITIES COMMISSION FROM THOSE THAT AREN'T IT SAID THE NEW BC GAS INC WILL ACT AS A MANAGEMENT CORPORATION PROVIDING STRATEGIC DIRECTIONS TO THE COMPANY AND ALL OF ITS SUBSIDIARIES THE COMPANY SAID IT DOESN'T EXPECT ANY CHANGES TO THE GROUP'S CURRENT OPERATIONS BC GAS IS A LOCAL GAS DISTRIBUTION CONCERN WITH INTERESTS IN GAS PIPELINES 9306290033 930629 IRAQ IS REPORTED TO HAVE REBUILT WEAPONS COMPLEX BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IRAQ APPEARS TO HAVE REBUILT MUCH OF ITS CONVENTIONAL WEAPONS COMPLEX THAT WAS DESTROYED DURING THE GULF WAR ACCORDING TO A REPORT ISSUED BY A HOUSE FOREIGN AFFAIRS SUBCOMMITTEE THE REPORT STATES THAT IRAQ HAS ALSO SUCCEEDED IN RETURNING TO SERVICE MOST OF THE TANKS ARTILLERY AND COMBAT AIRCRAFT DAMAGED DURING DESERT STORM THE REPORT IS COMING TO LIGHT JUST THREE DAYS AFTER THE CLINTON ADMINISTRATION ORDERED A MISSILE ATTACK ON IRAQ IN RETALIATION FOR ITS ALLEGED ROLE IN A PLOT TO ASSASSINATE FORMER PRESIDENT BUSH THE SUBCOMMITTEE HEADED BY TOM LANTOS D CALIF IS SCHEDULED TO HEAR FROM A SERIES OF WITNESSES TODAY ABOUT IRAQ'S REBUILDING EFFORT WHICH THE REPORT SAID ALSO EXTENDS TO THE REACTIVATION OF MANY OF IRAQ'S HIDDEN WEAPONS PROCUREMENT NETWORKS IN RECENT WEEKS IRAQ HAS STEPPED UP ITS HARASSMENT OF UNITED NATIONS INSPECTORS WHO ARE SUPERVISING THE DEMOLITION OF IRAQ'S WEAPONS OF MASS DESTRUCTION THE REPORT SAYS THAT HANS BLIX THE HEAD OF THE INTERNATIONAL ATOMIC ENERGY AGENCY HAS COMPLAINED THAT IRAQ REFUSES TO ALLOW INSPECTORS TO SET UP PERMANENT MONITORING EQUIPMENT AT ITS FORMER NUCLEAR FACILITIES WHILE THIS WEEKEND'S ATTACK ON IRAQ WAS LAUNCHED STRICTLY IN RESPONSE TO EVIDENCE OF AN IRAQI ROLE IN THE PLOT TO KILL MR BUSH CLINTON ADMINISTRATION OFFICIALS HAVE WARNED THAT THE US AND ITS ALLIES ARE PREPARED TO TAKE FURTHER MILITARY STEPS IF IRAQ DOESN'T BEGIN COOPERATING MORE FULLY WITH UN WEAPONS INSPECTORS THE UN SECURITY COUNCIL THIS MONTH WARNED IRAQ OF DIRE CONSEQUENCES IF IT DEFIES WEAPONS INSPECTORS AMBASSADOR ROLF EKEUS THE HEAD OF THE UN'S SPECIAL COMMISSION ASSIGNED TO MONITOR IRAQ HAS WARNED THAT IRAQ'S MILITARY PREPARATIONS ARE SO EXTENSIVE THAT LIFTING THE EMBARGO ON ITS OIL SALES WOULD PERMIT WEAPONS PROGRAMS TO GROW UP LIKE MUSHROOMS AFTER THE RAIN THE REPORT NOTES THAT IRAQ'S SAAD 16 BALLISTIC MISSILE RESEARCH AND DEVELOPMENT CENTER NEAR MOSUL HAS BEEN THOROUGHLY RECONSTRUCTED SINCE IT WAS DEVASTATED BY ALLIED BOMBERS DURING THE GULF WAR THE SUBCOMMITTEE'S REPORT ASSERTS THAT SADDAM HUSSEIN'S NEW PREPARATIONS IF LEFT UNCHECKED MEANS THAT THE GULF COULD FACE THE THREAT OF RENEWED IRAQI AGGRESSION DURING THIS ADMINISTRATION THE REPORT DOESN'T REFLECT ANY DAMAGE CAUSED BY THE US ATTACK ON IRAQ THIS WEEKEND WHICH WASN'T AIMED AT WEAPONS FACILITIES 9306290032 930629 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 315 30 TO 44 DAYS 317 45 TO 99 DAYS 322 100 TO 149 DAYS 324 150 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 321 30 DAYS 323 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 268 TWO MONTHS 273 THREE MONTHS 289 SIX MONTHS 312 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 312 ONE MONTH 320 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 310 30 DAYS 310 60 DAYS 312 90 DAYS 317 120 DAYS 321 150 DAYS 323 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 3/8 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JUNE 28 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 305 13 WEEKS 314 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 691 60 DAYS 699 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 4125 2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC FEDERAL NATIONAL MORTGAGE ASSOCIATION FANNIE MAE POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS PRICED AT PAR FOR DELIVERY WITHIN 30 DAYS 698 60 DAYS 708 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 267 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306290031 930629 BUSINESS BRIEF SUNCOR INC CONCERN ACCEPTS SETTLEMENT IN SUIT OVER FIRE HAZARDS SUNCOR INC TORONTO SAID IT REACHED AN OUTOFCOURT SETTLEMENT WITH THE COMPANIES IT SUED IN 1989 IN CONNECTION WITH A FIRE AT ITS OIL SANDS PLANT IN FORT MCMURRAY ALBERTA IN 1987 SUNCOR A UNIT OF OIL CONCERN SUN CO PHILADELPHIA SAID THE AGGREGATE GROSS AMOUNT OF THE SETTLEMENT IT WILL RECEIVE IS CONFIDENTIAL BUT THAT ITS PORTION OF THE NET PROCEEDS WILL BOOST ITS CASH FLOW BY 183 MILLION CANADIAN DOLLARS US143 MILLION IN 1993 IT SAID ITS 1987 AND 1988 NET INCOME WILL BE ADJUSTED TO REFLECT RETROACTIVELY THE C164 MILLION EARNINGS IMPACT PART OF THE PROCEEDS WILL BE PAID TO THE ALBERTA GOVERNMENT AND NORCEN ENERGY RESOURCES LTD AS ROYALTIES FOR THE PERIOD FOLLOWING THE FIRE SUNCOR AN OILANDGAS PRODUCTION REFINING AND MARKETING CONCERN FILED CLAIMS AGAINST 20 COMPANIES ALLEGING THEY FAILED TO WARN THAT WIRES AND CABLES INSTALLED IN THE PLANT COULD BE A FIRE HAZARD WHEN BUNDLED TOGETHER AMONG THE SUPPLIERS DISTRIBUTORS AND ENGINEERS NAMED IN THE SUIT WERE TORONTOBASED NORTHERN TELECOM LTD FOUR UNITS OF BECHTEL GROUP INC OF SAN FRANCISCO AND THE CANADIAN UNIT OF GENERAL ELECTRIC CO OF FAIRFIELD CONN 9306290030 930629 CAR DEALER SETTLES CHARGES OF BRIBERY AGAINST HONDA CONCORD NH AP A FORMER HONDA MOTOR CO DEALER WHOSE ALLEGATIONS OF BRIBERY AT THE AUTOMAKER TRIGGERED AN FBI INVESTIGATION HAS SETTLED HIS LAWSUIT AGAINST THE COMPANY BUT THE FBI PROBE CONTINUES DETAILS OF THE SETTLEMENT BETWEEN RICHARD NAULT AND THE AMERICAN HONDA MOTOR CO UNIT WERE NOT DISCLOSED MR NAULT'S LAWYER AND A HONDA SPOKESMAN DECLINED TO COMMENT TWO YEARS AGO HONDA REPORTEDLY TURNED DOWN A PROPOSED 9 MILLION RESOLUTION OF THE SUIT WHICH WAS NEARING TRIAL IN US DISTRICT COURT IN CONCORD NH BEFORE THE SETTLEMENT MR NAULT CLAIMED HONDA UNDERMINED HIM AFTER HE SPENT 22 MILLION OPENING AN ACURA DEALERSHIP IN CONCORD IN THE LATE 1980S MR NAULT SAID HONDA PROMISED HIM 150 CARS WHEN HE OPENED BUT PROVIDED ONLY 20 LATER SUPPLYING ONLY ABOUT ONETHIRD OF THE 75 CARS A MONTH HE WAS TO GET WHEN HE MOVED THE OPERATION IN WITH HIS ADJACENT LINCOLNMERCURY DEALERSHIP ACURA CUT OFF HIS SUPPLY IN DOCUMENTS AND TESTIMONY THOMAS BOHLANDER THE OWNER OF A RIVAL ACURA DEALERSHIP IN NASHUA NH SAID HE GOT FAVORABLE TREATMENT FROM HONDA AFTER GIVING HONDA OFFICIAL DAVID PEDERSEN A NEW CAR AND CASH 9306290029 930628 ECONOMY TRACKING THE ECONOMY BY ALLEN YONAN JR ANALYSTS SAY JOB GROWTH PROBABLY THROTTLED BACK SOMEWHAT IN JUNE AFTER TWO STRONG MONTHS A SLOWDOWN THAT WOULD BE CONSISTENT WITH THE UNEVEN NATURE OF THE ECONOMIC EXPANSION NONFARM PAYROLL JOBS GREW 209000 IN MAY AND 216000 IN APRIL THE FIRST BACKTOBACK INCREASES OF THAT MAGNITUDE SINCE BEFORE THE RECESSION BUT ALL SIGNS ARE THAT PAYROLL GROWTH SLOWED FROM THAT PACE IN JUNE PROBABLY TO ABOUT 120000 SAID MARK ZANDI CHIEF ECONOMIST FOR REGIONAL FINANCIAL ASSOCIATES IN WEST CHESTER PA HE ESTIMATED THE UNEMPLOYMENT RATE REMAINED UNCHANGED IN JUNE AT 69 OF THE WORK FORCE BUSINESSES REMAIN CAUTIOUS ABOUT HIRING GIVEN THE UNCERTAINTY WITH FISCAL POLICY CHANGES AND HEALTH CARE HE SAID ALSO EMPLOYERS MAY STILL HAVE DOUBTS ABOUT THE STAYING POWER OF THE ECONOMIC EXPANSION THEY ARE STILL CHASTENED BY THE EVENTS OF THE LAST THREE YEARS MR ZANDI ADDED THERE WERE A LOT OF BUSINESS FAILURES AND THEY ARE NOT ANXIOUS TO OVEREXTEND THEMSELVES IN AN ENVIRONMENT THAT LOOKS SHAKY AS HAS BEEN THE TREND IN RECENT MONTHS MR ZANDI EXPECTS MUCH OF THE JUNE JOB GROWTH WAS IN THE HEALTH AND BUSINESS SERVICES SECTORS BUT THERE ARE SOME SIGNALS THAT HIRING IN THE MANUFACTURING SECTOR COULD SOON PICK UP HE SAID STRENGTHENING AUTO SALES AND FALLING INVENTORIES HAVE MADE AUTO MAKERS BULLISH ABOUT PRODUCTION PLANS FOR THE SECOND HALF OF THE YEAR MR ZANDI SAID 9306290028 930629 LITTON TO REDEEM NOTES BEVERLY HILLS CALIF LITTON INDUSTRIES INC SAID IT WOULD REDEEM ON JULY 29 ALL OF ITS ZEROCOUPON CONVERTIBLE SUBORDINATED NOTES DUE 2010 REPRESENTING ABOUT 314 MILLION IN DEBT AS PART OF THE TRANSACTION WHICH WAS EXPECTED NOTEHOLDERS CAN RECEIVE 6126 SHARES OF COMMON STOCK PER 1000 PRINCIPAL AMOUNT IF THEY CONVERT THE NOTES BY JULY 29 NOTEHOLDERS WHO CHOOSE NOT TO RECEIVE STOCK WILL RECEIVE 32011 PER 1000 PRINCIPAL AMOUNT LITTON IS A TECHNOLOGYBASED COMPANY PROVIDING RESOURCEEXPLORATION SERVICES INDUSTRIALAUTOMATION SYSTEMS AND ADVANCED ELECTRONIC AND DEFENSE SYSTEMS 9306290027 930629 LETTERS TO THE EDITOR DID THEY ACTUALLY READ LANI GUINIER IN HER JUNE 8 EDITORIAL PAGE ARTICLE WHAT'S WRONG WITH THE ELITE LAW SCHOOLS MARY ANN GLENDON ASCRIBES LANI GUINIER'S EXTREME VIEWS TO A PERVASIVE AFFLICTION INFECTING THE NATION'S ELITE LAW SCHOOLS ACCORDING TO PROF GLENDON THIS AFFLICTION IS CHARACTERIZED BY A DISDAIN FOR THE PRACTICAL ASPECTS OF LAW A ZANY PASSION FOR NOVELTY A CONFUSION OF ADVOCACY WITH SCHOLARSHIP AND A MISTRUST OF MAJORITARIAN INSTITUTIONS TO GIVE PROF GLENDON HER DUE I AGREE WITH HER THAT SUCH AN AFFLICTION EXISTS AND THAT IT INFECTS THE WORK OF TOO MANY SCHOLARS AT ELITE LAW SCHOOLS THE TROUBLE IS LANI GUINIER IS NOT ONE OF THEM DOES MS GUINIER EXALT THEORY OVER PRACTICE QUITE THE OPPOSITE HER WORK IS DRIVEN BY PRACTICE HER VIEWS WERE SHAPED NOT BY HOURS IN THE LIBRARY READING HEGEL BUT BY 12 YEARS IN THE TRENCHES AS A CIVIL RIGHTS ENFORCER AND LITIGATOR IF MS GLENDON THINKS MS GUINIER'S VIEWS ARE EXTREME MAYBE IT'S BECAUSE MS GLENDON HASN'T HAD THE EXPERIENCE OF DEALING FACE TO FACE WITH WHITE LEGISLATORS WHO PHYSICALLY EXCLUDE THEIR BLACK COLLEAGUES FROM MEETING ROOMS OR WHO PUBLICLY REFUSE TO DRAW NIGGER DISTRICTS MAYBE IT'S BECAUSE MS GLENDON HAS NEVER LIVED IN A COUNTY WHERE NOT A SINGLE WHITE PERSON HAS EVER PUBLICLY SUPPORTED A BLACK CANDIDATE IF MS GUINIER'S VIEWS ARE EXTREME IT'S THE EXTREMENESS OF HER EXPERIENCE NOT THE ZANINESS OF HER THEORIZING THAT'S TO BLAME ADVOCACY SCHOLARSHIP WRONG AGAIN MS GUINIER SPENDS AS MUCH TIME IN HER WRITINGS CRITICIZING THE CIVIL RIGHTS MOVEMENT'S APPROACH TO VOTING RIGHTS ACT ENFORCEMENT AS SHE DOES TO PROPOSING MORE EFFECTIVE REMEDIES IF THE TEST OF THE TRUE SCHOLAR IS OPENMINDEDNESS AND EVENHANDEDNESS WHAT COULD BE MORE SCHOLARLY THAN TO CRITICIZE YOUR OWN PRIOR WORK AS AN ADVOCATE BYPASSING ORDINARY POLITICS THIS CHARGE IS ESPECIALLY LAUGHABLE AS APPLIED TO MS GUINIER WHEN IT COMES TO ENFORCING THE VOTING RIGHTS ACT WHAT EXACTLY IS ORDINARY POLITICS A CITY WITH 37 BLACK VOTER REGISTRATION THAT HAS NEVER ELECTED A BLACK OFFICEHOLDER A COUNTY COMMISSION THAT CHANGES ITS GOVERNANCE RULES TO DISENFRANCHISE THE FIRST BLACK EVER ELECTED TO THAT BODY WHAT IS IT ABOUT LANI GUINIER I KEEP ASKING MYSELF THAT MAKES OTHERWISE SENSIBLE AND EVEN SENSITIVE PEOPLE WANT TO FASHION HER INTO A MASK FOR THEIR OWN FEARS AND FRUSTRATIONS PROF GLENDON ARGUES THAT THE THEORIES EXPRESSED IN PROF GUINIER'S MAJOR ARTICLES WENT FLAT IN THE LARGER PUBLIC ARENA BECAUSE THEY WERE FORMULATED IN THE NEWAGE LEGAL ACADEMY IN WHICH SCHOLARS AVOID ROBUST DISCUSSION PROF GUINIER'S FELLOW ACADEMICS PROF GLENDON WRITES DID NOT DO HER THE FAVOR OF SUBJECTING HER THEORIES TO STRENUOUS CONSTRUCTIVE CRITICISM IT IS APPARENT THAT PROF GLENDON LIKE MANY MEDIA PUNDITS DID NOT READ PROF GUINIER'S ARTICLES HAD SHE DONE SO SHE WOULD HAVE SEEN THAT HER TWO MAJOR ARTICLES WERE PRESENTED AT SIX LAW FACULTY SEMINARS AROUND THE COUNTRY AND THAT 56 PROMINENT LEGAL SCHOLARS REVIEWED AND COMMENTED ON THE IDEAS EXPLORED THEREIN IN ADDITION BOTH ARTICLES CONTAIN SECTIONS IN WHICH PROF GUINIER ADDRESSES OBJECTIONS TO HER THEORIES INCLUDING THAT THEY ARE UNCONSTITUTIONAL AND PROMOTE RACIAL SEPARATISM PROF GLENDON IS CORRECT TO POINT OUT THAT SOME CRITICAL LEGAL SCHOLARSHIP IS THE PRODUCT OF CARELESS RESEARCH AND IMPRUDENT THINKING PROF GUINIER'S ARTICLES ARE NOT AMONG THEM MS GLENDON'S ARTICLE BROUGHT TO MIND A PERSONAL EXPERIENCE AT GEORGETOWN UNIVERSITY LAW CENTER IN OCTOBER 1990 I LISTENED INCREDULOUSLY AS A PROFESSOR EXPLAINED THAT THE DEFINITION OF RAPE IS MERELY A SOCIAL CONSTRUCT WITHOUT ANY INDEPENDENT MEANING OR EXISTENCE IN AN EFFORT TO SUPPLY THE CLASS WITH SOME MUCHNEEDED ELUCIDATION THE PROFESSOR PROVIDED A CONCRETE EXAMPLE THE RELATIONSHIP OF JUNE AND WARD CLEAVER THE FICTITIOUS PARENTS OF BEAVER CLEAVER IN THE POPULAR TV SERIES LEAVE IT TO BEAVER HE EXCITEDLY EXPLAINED TO US THAT IF WE COULD ONLY SEE THAT JUNE CLEAVER IS INSEPARABLE FROM THE SOCIAL IDEOLOGY OF WIFEDOM WE WOULD UNDERSTAND THAT EACH AND EVERY SEXUAL ENCOUNTER BETWEEN JUNE AND WARD WAS IN REALITY AN INCIDENT OF RAPE THE ENTIRE CLASS SAT IN AWKWARD SILENCE AS THE PROFESSOR FILLED IN THE DETAILS FOR THE NEXT HOUR OR SO IT TURNED OUT THAT JUNE'S POSITION IN THE PRESEXUAL REVOLUTION SOCIAL STRUCTURE RENDERED HER INCAPABLE OF GIVING VALID CONSENT TO MARITAL RELATIONS IN WHAT CLASS WERE WE LEARNING OF THE SOCIETAL RAPE OF JUNE CLEAVER JURISPRUDENCE OR LEGAL PHILOSOPHY ARE GOOD GUESSES BUT THIS CLASS HAPPENED TO BE FIRSTYEAR CONTRACT LAW LATER WHEN ABOUT TWOTHIRDS OF THE CLASS COMPLAINED TO THE DEAN ABOUT THE QUALITY OF THE INSTRUCTION THE PROFESSOR SEEMED CONFUSED AND RESENTFUL MY SYMPATHY IS NONEXISTENT HOWEVER AS I SPEND THIS SUMMER STUDYING FOR THE BAR EXAM AND TEACHING MYSELF CONTRACT LAW 9306290026 930629 TECHNOLOGY BRIEF CRAY RESEARCH INC SOUTH KOREAN GROUP ORDERS CRAY C916 COMPUTER SYSTEM CRAY RESEARCH INC EAGAN MINN SAID IT RECEIVED AN ORDER FOR A CRAY C916 SYSTEM FROM THE KOREAN INSTITUTE OF SCIENCE AND TECHNOLOGY A GOVERNMENTRUN SUPERCOMPUTER CENTER IN DEAJON SOUTH KOREA TERMS WERE NOT DISCLOSED THE C916 SYSTEM AVAILABLE WITH EIGHT TO 16 PROCESSORS HAS A LIST PRICE IN THE US BEGINNING AT 19 MILLION THE COMPUTER COMPANY SAID THE SYSTEM IS SCHEDULED FOR INSTALLATION IN THE FOURTH QUARTER OF THIS YEAR AND IS THE FIRST CRAY C916 TO BE INSTALLED IN SOUTH KOREA 9306290025 930629 LTV DROPPED FROM STEEL INDEX NEW YORK LTV CORP IS BEING TAKEN OFF THE STEEL INDUSTRY GROUP OF THE DOW JONES EQUITY MARKET INDEX EFFECTIVE TODAY THE COMPANY HAS REORGANIZED UNDER BANKRUPTCY PROCEEDINGS THERE WAS NO REPLACEMENT NAMED 9306290024 930615 RUTH BADER GINSBURG A JUDGE'S JUDGE BY PETER HUBER AND RICHARD TARANTO THE CONTRAST IN THE ROSE GARDEN YESTERDAY WAS STRIKING RUTH BADER GINSBURG IS AS PHYSICALLY TINY AS THE PRESIDENT IS LARGE YET JUDGE GINSBURG IS AN EXCEPTIONALLY POWERFUL WOMAN AND ONE WITH A REMARKABLY CONSISTENT AND CLEAR VISION OF WHAT THE RULE OF LAW REALLY MEANS READ A LOT OF JUDGE GINSBURG'S OPINIONS AND YOU ARE STRUCK BY THE VOICE IT IS A VOICE OF SCRUPULOUS HONESTY FREEDOM FROM CANT AND STRONG MORAL COMMITMENT WHEN YOU READ HER DESCRIPTION OF THE FACTS OF THE CASE OR OF THE PRECEDENTS THAT POINT IN OPPOSITE DIRECTIONS YOU DON'T KNOW WHICH WAY THE CASE IS GOING TO COME OUT YOU APPROACH THE POINT OF DECISION AT WHICH MANY A LESS TALENTED OR MORE IDEOLOGICAL JUDGE WOULD INDULGE IN RHETORIC AND YOU GET INSTEAD A MEASURED EXPRESSION OF REASONS IN HER OWN WORDS NOT THOSE OF THE LATEST POLITICAL SLOGAN JUDGE GINSBURG FOUNDED AND DIRECTED THE WOMEN'S RIGHTS PROJECT OF THE AMERICAN CIVIL LIBERTIES UNION IN THE 1970S SHE ARGUED AND WON MOST OF THE IMPORTANT CONSTITUTIONAL CHALLENGES TO GENDER DISCRIMINATION THAT WERE DECIDED BY THE SUPREME COURT SHE ALSO HANDLED MANY CASES IN LOWER COURTS HER VIEWS ON SEX DISCRIMINATION ARE FIRMLY ANCHORED IN THE EQUAL PROTECTION LANGUAGE OF THE FOURTEENTH AMENDMENT THUS SOME OF THE LANDMARK GENDER DISCRIMINATION CASES THAT SHE ARGUED SUCCESSFULLY BEFORE THE SUPREME COURT WERE BROUGHT ON BEHALF OF MALE PLAINTIFFS FRONTIERO V RICHARDSON 1973 DURING THE 1970S JUDGE GINSBURG PERFORMED A LEGAL HIGHWIRE ACT ARGUING IN THE POLITICAL ARENA FOR THE ENACTMENT OF THE EQUAL RIGHTS AMENDMENT WHILE SIMULTANEOUSLY CONVINCING THE SUPREME COURT THAT SIMILAR PROTECTIONS ARE ALREADY A PART OF THE AMENDMENT'S EQUAL PROTECTION CLAUSE JUDGE GINSBURG HAS BEEN EQUALLY SENSITIVE TO EQUAL PROTECTION CLAIMS ADVANCED BY OTHER VICTIMS OF DISCRIMINATION AS AN APPELLATE JUDGE FOR EXAMPLE SHE WROTE MAJOR OPINIONS AFFIRMING LIBERAL STANDING RULES ACCESS TO COURTS FOR MINORITY GROUPS SEEKING TO RAISE CLAIMS OF RACE DISCRIMINATION IN A SERIES OF SPEECHES AND ARTICLES JUDGE GINSBURG HAS ARTICULATED A NUANCED POSITION ON THE ISSUE OF ABORTION SHE HAS QUESTIONED THE BREATHTAKING BREADTH OF THE MAJORITY OPINION IN ROE V WADE AT THE SAME TIME SHE HAS STEADFASTLY DEFENDED THE CORE IDEA THAT EQUAL PROTECTION OF WOMEN ENGAGED IN THE ECONOMIC AND SOCIAL LIFE OF THE NATION NECESSARILY IMPLIES FREEDOM OF REPRODUCTIVE AUTONOMY THE DISADVANTAGEOUS TREATMENT OF A WOMAN BECAUSE OF PREGNANCY OR REPRODUCTIVE CHOICE JUDGE GINSBURG HAS WRITTEN IS A PARADIGM CASE OF DISCRIMINATION ON THE BASIS OF SEX JUDGE GINSBURG'S LEGAL CAREER BEFORE HER APPOINTMENT TO THE BENCH WAS ALSO ANIMATED BY HER COMMITMENT TO CIVIL LIBERTIES AND THE BILL OF RIGHTS ON THE BENCH SHE HAS WRITTEN MAJOR OPINIONS AFFIRMING FREEDOM OF RELIGION AND THE SEPARATION OF CHURCH AND STATE ONE SIGNIFICANT 1984 PRONOUNCEMENT FOR EXAMPLE CONDEMNED THE AIR FORCE DETERMINATION TO BAN AN OFFICER FROM WEARING A YARMULKE OR JEWISH SKULLCAP SHE WAS JOINED BY THEN JUDGE ANTONIN SCALIA AND IN A SEPARATE OPINION JUDGE KENNETH STARR LATER SOLICITORGENERAL UNDER PRESIDENT BUSH IN MATTERS OF FREE SPEECH AND THE PRESS JUDGE GINSBURG HAS WRITTEN MAJOR OPINIONS DEFENDING FREE SPEECH ON THE AIRWAVES AND FREEDOM OF INFORMATION IN ONE STATEMENT FOR EXAMPLE SHE EMPHASIZED THE IMPORTANCE OF KEEPING LIBEL LAW FIRMLY TIED TO THE ACTUAL MALICE STANDARD WHICH IS THE PRESS'S MAJOR PROTECTION AGAINST THE CHILLING EFFECTS OF OPENENDED LIABILITY IN 1989 JUDGE GINSBURG RELYING ON THE FIRST AMENDMENT DISSENTED FROM A DECISION UPHOLDING THE REAGANBUSH ADMINISTRATIONS' MEXICO CITY POLICY WHICH BANNED AID TO ANY FOREIGN FAMILYPLANNING ORGANIZATION THAT FURNISHED ABORTION COUNSELING OR REFERRAL THE CLINTON ADMINISTRATION WAS LATER TO REPEAL THAT BAN IN HER 13YEAR TENURE ON THE BENCH JUDGE GINSBURG HAS WRITTEN NUMEROUS OPINIONS ON SEARCHES AND SEIZURES CRIMINAL PROCEDURE RULES OF EVIDENCE AND PRISONERS' RIGHTS THE ONLY COMMON DENOMINATOR IN HER OPINIONS ON CRIMINAL MATTERS IS THAT THEY ARE SCRUPULOUSLY FREE OF IDEOLOGY IN A PARTICULARLY NOTABLE 1987 CASE JUDGE GINSBURG IN DISSENT ARGUED IN FAVOR OF THE CONSTITUTIONALITY OF THE INDEPENDENT COUNSEL LAW THE SUPREME COURT WITH ONLY JUSTICE SCALIA DISSENTING SUBSEQUENTLY VINDICATED JUDGE GINSBURG'S POSITION WHEN RUTH GINSBURG WAS NOMINATED TO THE DC CIRCUIT THE AMERICAN BAR ASSOCIATION RATED HER EXCEPTIONALLY WELL QUALIFIED THE ABA'S HIGHEST RATING AND ONE ACCORDED RATHER RARELY THAT RATING HAS BEEN FULLY VINDICATED BY HER RECORD ON THE BENCH JUDGE GINSBURG'S OPINIONS ARE MARKED BY RIGOROUS ANALYSIS OF STATUTORY AND CONSTITUTIONAL TEXTS AND RESPECT FOR PRECEDENT SHE HAS FREQUENTLY EMPHASIZED HOW CONGRESS CAN SIMPLIFY AND CONTAIN THE ROLE OF THE COURTS BY DRAFTING CLEAR STATUTES AND RESPONDING TO JUDICIAL PRONOUNCEMENTS WITH NEW LEGISLATION JUDGE GINSBURG CARES DEEPLY ABOUT THE INSTITUTIONAL ROLE OF THE COURTS IN AMERICAN GOVERNMENT AND HAS DEMONSTRATED GREAT SKILL IN BRIDGING IDEOLOGICAL DIFFERENCES AS JUDGE GINSBURG RECENTLY DECLARED IN A LECTURE A JUDGE SHOULD ENGAGE IN A DIALOGUE WITH NOT A DIATRIBE AGAINST COEQUAL DEPARTMENTS OF GOVERNMENT STATE AUTHORITIES AND EVEN HER OWN COLLEAGUES AS A SCHOLAR ADVOCATE AND JURIST RUTH BADER GINSBURG HAS LIVED WITH THE STEADFAST CONVICTION THAT THE SOARING PROMISE OF EQUALITY IN THE AMERICAN CONSTITUTION CAN BECOME DOWNTOEARTH LEGAL REALITY SHE CARRIED THAT CONVICTION TO THE SUPREME COURT SHE HAS FAITHFULLY RECONCILED PERSONAL CONVICTION WITH A JUDGE'S DUTY TO APPLY THE LAW WE KNOW HER WELLBOTH PERSONALLY AND FROM HER MANY WRITINGS RUTH GINSBURG IS A JUDGE'S JUDGE LIKE HENRY FRIENDLY AND LEARNED HAND SHE BELIEVES IN THE RULE OF LAW SHE SHOULD BE SUPPORTED BY LIBERALS AND CONSERVATIVES ALIKE MR HUBER A FELLOW AT THE MANHATTAN INSTITUTE IS A FORMER LAW CLERK TO JUDGE GINSBURG AND SUPREME COURT JUSTICE SANDRA DAY O'CONNOR MR TARANTO AN ATTORNEY HAS CLERKED FOR JUSTICE O'CONNOR AND JUDGE ROBERT BORK SEE RELATED LETTER LETTERS TO THE EDITOR JUDGE'S VIEWS A DANGER TO OUR CONSTITUTION WSJ JUNE 29 1993 9306150145 YY93 MM06 9306290022 930629 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CAPITAL HOLDING CORP A SHELF OFFERING OF 29275 MILLION OF DEBT SECURITIES GTI CORP AN OFFERING OF 400000 COMMON SHARES VIA NEEDHAM & CO INC REPUBLIC SECURITY FINANCIAL CORP AN OFFERING OF 800000 COMMON SHARES AND 300000 SERIES A CUMULATIVE CONVERTIBLE SHARES VIA RYAN BECK & CO 9306290021 930629 INTERNATIONAL TAIWAN INDICTS SEVEN IN AWARD TO HALLIBURTON BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN PROSECUTORS INDICTED SEVEN EXECUTIVES IN A SCANDAL INVOLVING A 173 MILLION CONTRACT AWARDED TO A SUBSIDIARY OF HALLIBURTON CO BY TAIWAN'S LARGEST COMPANY STATEOWNED CHINESE PETROLEUM CORP PROSECUTOR LIN HUNGPENG SAID NO CHARGES WOULD BE FILED AGAINST THE TAIWAN REPRESENTATIVE OF THE UNIT BROWN & ROOT INTERNATIONAL INC OR FOUR OFFICIALS FROM OTHER COMPANIES BECAUSE OF INSUFFICIENT EVIDENCE BROWN & ROOT HAS CONSISTENTLY DENIED ANY WRONGDOING IN THE SCANDAL AND A SPOKESWOMAN IN HOUSTON REITERATED THAT SAYING WE HAVEN'T DONE ANYTHING WRONG CHARGES WERE FILED AGAINST OFFICIALS FROM GOVERNMENTOWNED AND PRIVATESECTOR CONSTRUCTION AND ENGINEERING COMPANIES INCLUDING AN OFFICIAL FROM A DUTCH COMPANY A MIDDLERANKING OFFICIAL OF CHINESE PETROLEUM WAS CHARGED AS WAS THE PRESIDENT OF A COMPANY OWNED BY TAIWAN'S PROVINCIAL GOVERNMENT TANG ENG IRON WORKS CORP PROSECUTORS IDENTIFIED THE DUTCH BUSINESSMAN AS SIMON PIELKENROOD OF INDUSTRY PROJECTS GROUP OFFICIALS OF IPG WHICH FOREIGN BUSINESSMEN IN TAIWAN SAY IS A SMALL OILSERVICES COMPANY COULDN'T BE REACHED FOR COMMENT IN TAIWAN OR THE NETHERLANDS PROSECUTORS SAID CHARGES AGAINST THE EXECUTIVES INCLUDE PROFITEERING IN THE BIDDING AND CONTRACT PROCESS AND FORGERY OF DOCUMENTS THEY IDENTIFIED AS AMONG THOSE STILL BEING INVESTIGATED KUAN YUNGSHIH CHINESE PETROLEUM'S RETIRED CHAIRMAN AND CHEN KUOYUNG CHINESE PETROLEUM'S PRESIDENT CHINESE PETROLEUM OFFICIALS HAVE DENIED ANY WRONGDOING THE INDICTMENTS CENTER ON SUBCONTRACTING FOR A WASTEWATER TREATMENT FACILITY AT A CHINESE PETROLEUM REFINERY IN KAOHSIUNG IN SOUTHERN TAIWAN THE CONTRACT WAS AWARDED IN FEBRUARY 1991 TO BROWN & ROOT WHICH SUBCONTRACTED IT TO TANG ENG PROSECUTORS ALLEGE THAT THE SUBCONTRACTING INVOLVED INFLATED PRICING THAT TOTALED 295 MILLION NEW TAIWAN DOLLARS 118 MILLION ON JUNE 1 CHINESE PETROLEUM'S PRESIDENT MR CHEN ANNOUNCED THAT THE COMPANY WOULD CANCEL THE CONTRACT WITH BROWN & ROOT FOR THE WASTEWATER FACILITY WHICH IS ABOUT 70 COMPLETED BUT THE CONTRACT HASN'T BEEN FORMALLY TERMINATED CHINESE PETROLEUM OFFICIALS SAY 9306290020 930629 MALAYSIA'S OVERHEATED STOCK MARKET KEEPS ON SIZZLING BY MICHAEL R SESIT AND SHOBA PURUSHOTHAMAN STAFF REPORTERS OF THE WALL STREET JOURNAL LONDON IF YOU LIKE RIDING BUCKING BRONCOS YOU'LL LOVE THE MALAYSIAN STOCK MARKET FROM DEC 31 TO JUNE 11 THE DOW JONES EQUITY MARKET INDEX FOR MALAYSIA SOARED 26 IN LOCAL CURRENCY BY FRIDAY IT HAD DROPPED 7 FROM ITS JUNE HIGH ONLY TO SURGE BY MORE THAN 2 YESTERDAY NOW INVESTORS WORLDWIDE ARE TRYING TO FIGURE JUST HOW MUCH SIZZLE IS LEFT IN KUALA LUMPUR'S HIGHFLYING MARKET IT ALL DEPENDS ON WHAT YOU THINK HAS PROPELLED MALAYSIAN SHARES 21 SO FAR THIS YEAR IN DOLLAR TERMS POLITICS OR ECONOMIC FUNDAMENTALS LOCALS TO BE SURE ARE BELIEVERS PEOPLE HAVE BEEN SAYING THE PARTY IS GOING TO END MANY TIMES BUT EACH TIME YOU THINK THE END IS NEAR SOME OTHER POSITIVE NEWS HITS THE MARKET SAYS RAMLI MUHAMMED A TRADER AT A LOCAL KUALA LUMPUR BROKERAGE HOUSE THIS IS A ONCEINALIFETIME PARTY FOR MANY OF US THEY AREN'T THE ONLY CONVERTS I'M QUITE POSITIVE SAYS MICHAEL WATT A DIRECTOR OF ASIAN EQUITIES AT HENDERSON INVESTMENT SERVICES LTD IN LONDON EXPECTING THE MARKET TO AGAIN RISE AS THE ECONOMY GATHERS STRENGTH HE PREDICTS MALAYSIAN STOCKS WILL BE 18 HIGHER BY YEAR END BY CONTRAST JOHN PICKARD AN INVESTMENT MANAGER AT PDFM LTD A UNIT OF THE UNION BANK OF SWITZERLAND IN LONDON WARNS I HAVE A FEELING IT COULD END IN TEARS AROUND NOVEMBER THAT'S WHEN THE LEADING PARTY IN MALAYSIA'S COALITION GOVERNMENT IS SCHEDULED TO HOLD PARTY ELECTIONS TO DETERMINE ITS NEW LEADERSHIP AND GUESS WHAT MALAYSIA'S FINANCE MINISTER IS RUNNING SAYS MR PICKARD HE HAS GOT TO KEEP THE ECONOMY GOING THROUGH THIS YEAR SO EVERYONE THINKS HE'S A FANTASTIC GUY AND HE WILL GET ELECTED THE BIGGEST GAINERS HAVE BEEN MOSTLY SECONDTIER OR SPECULATIVE STOCKS THOSE WITH RELATIVELY SMALL TRADING VOLUME THAT CAN EASILY BE SENT SOARING ON RUMORS THAT THIS OR THAT COMPANY IS ABOUT TO WIN A GOVERNMENT CONTRACT BY CONTRAST SOME BIG BLUECHIP STOCKS HAVEN'T MOVED MUCH AT ALL THIS YEAR MR PICKARD OF PDFM SAYS YOU'VE GOT PRIVATE INVESTORS BASICALLY BUYING ANYTHING THAT MOVES SOME SPECULATIVE SHARES HAVE SOARED 300 TO 500 AND LOCAL TRADING VOLUMES HAVE NOT ONLY SET RECORDS BUT HAVE SURPASSED THOSE OF THE NEW YORK STOCK EXCHANGE WHICH IS 40 TIMES BIGGER AT CURRENT PRICES THE MALAYSIAN STOCK MARKET IS SELLING AT ROUGHLY 19 TIMES 1993 EARNINGS AND 16 TIMES 1994 PROJECTED EARNINGS THAT MEANS FAIRLY SLUGGISH EARNINGS GROWTH IN 1993 BUT A FAIRLY STRONG UPTURN IN 1994 IS EXPECTED SAYS HENDERSON'S MR WATT STILL OPTIMISTIC HIS BIGGEST HOLDING IS UMW HOLDINGS BHD A TRADING AND CONSTRUCTION COMPANY THAT IS BUILDING A MAJOR NORTHSOUTH HIGHWAY IN MALAYSIA AMONG THE BLUE CHIPS HE BELIEVES TELEKOM MALAYSIA BHD HAS THE BEST GROWTH OPPORTUNITIES DESPITE SOME SKEPTICISM ABOUT A FALLOUT AROUND THE TIME OF THE NOVEMBER PARTY ELECTIONS PDFM'S MR PICKARD SAYS THE LONGTERM FUNDAMENTALS FOR MALAYSIA ARE PRETTY GOOD IT IS A WELLSTRUCTURED WELLORGANIZED ECONOMY WITH A GOOD INFRASTRUCTURE STOCKS HE LIKES ARE THOSE THAT ARE WELLPOSITIONED TO CAPITALIZE ON THAT RISING WEALTH TELEKOM MALAYSIA AUTOMAKER PERUSAHAAN OTOMOBIL NASIONAL BHD AND SEMICONDUCTOR MAKER MALAYSIAN PACIFIC INDUSTRIES BHD WHICH IS ALSO INTO PLASTICS AND PAPER I'M LOOKING FOR OPPORTUNITIES TO GET INTO SOME OF THE BLUE CHIPS BECAUSE OF THE LONGTERM STORY HE SAYS BUT I WANT TO MAKE SURE ALL THIS FROTH IS OUT OF THE WAY BEFORE I COMMIT MORE MONEY JOHN HICKLING A PORTFOLIO MANAGER AT FIDELITY INVESTMENTS IN BOSTON OWNS TWO MALAYSIAN GAMBLING STOCKS THAT HAVE DONE QUITE WELL GENTING BHD AND MAGNUM BHD IN ADDITION HE RECENTLY PURCHASED ELECTRIC UTILITY TENAGA NASIONAL BHD AND TELEKOM MALAYSIA BOTH ARE BIG BORING BLUECHIP COMPANIES THAT SORT OF GOT LEFT BEHIND WHEN ALL THE SEXY STOCKS MOVED HIGHER I BOUGHT THEM JUST BECAUSE THEY'VE DONE NOTHING HE SAYS 9306290019 930629 CREDIT RATINGS S&P REVISES OUTLOOK ON KMART TO NEGATIVE CITING ITS POOR RESULTS NEW YORK STANDARD & POOR'S CORP SAID IT REVISED ITS OUTLOOK ON KMART CORP TO NEGATIVE FROM STABLE CITING THE DISCOUNT RETAILER'S SLUGGISH RESULTS AND ITS PROBLEMS WITH FASHION APPAREL S&P SAID THE REVISION REFLECTS A WEAKER THAN ANTICIPATED OPERATING PERFORMANCE IN THE FIRST QUARTER WHEN KMART'S PROFIT BEFORE SPECIAL CHARGES DROPPED 57 AND CONCERNS THAT FULL YEAR RESULTS WILL FALL SHORT OF EXPECTATIONS LAST WEEK TROY MICHBASED KMART DISCLOSED THAT SECONDQUARTER AND FULLYEAR RESULTS LIKELY WON'T MATCH YEAREARLIER LEVELS S&P NOTED THAT KMART IS TAKING STEPS TO PROTECT ITS SOLID BUSINESS PROFILE BY RENOVATING AND EXPANDING ITS APPROXIMATELY 2400 DISCOUNT STORES IT'S ABOUT HALFWAY DONE AND SALES ARE UP 6 IN THE RENOVATED STORES WHILE THE OLDMODEL STORES REPORT 1 SALES DECLINES BUT KMART HAS NOT BEEN AS SUCCESSFUL WITH ITS FASHION APPAREL FOCUS A KEY PART OF CHAIRMAN JOSEPH ANTONINI'S STRATEGY WHICH HAS LED TO EXCESS INVENTORY S&P SAID IF KMART HAS TO PUT THE APPAREL ON SALE TO MOVE IT OUT MARGINS WOULD BE SQUEEZED THE RATINGS AGENCY SAID S&P ALSO NOTED THAT WHILE KMART'S SPECIALTY RETAILING OPERATIONS ARE EXPECTED TO PROVIDE GROWTH FOR KMART THE PACE MEMBERSHIP WAREHOUSE AND BUILDERS SQUARE DIVISIONS WERE A SIGNIFICANT DRAG ON FIRSTQUARTER PROFITABILITY S&P AFFIRMED THE RATINGS ON KMART'S ROUGHLY 4 BILLION IN DEBT BUT SAID THE RATINGS COULD BE SUBJECT TO A DOWNGRADE IF KMART DOES NOT IMPROVE ITS OPERATING PERFORMANCE OR FINANCIAL PROFILE KMART CLOSED AT 2050 UP 50 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9306290018 930629 BUSINESS BRIEF FORD MOTOR CO AUTO MAKER TO RECALL CARS FOR STEERING DOOR DEFECTS FORD MOTOR CO SAID IT IS RECALLING 105300 CARS TO FIX POSSIBLE DEFECTS IN STEERING COLUMNS AND LIFT GATES THE AUTO MAKER IS RECALLING 101400 1991MODEL FORD ESCORTS AND MERCURY TRACERS WITH MANUAL TRANSMISSIONS TO FIX IGNITION LOCK ASSEMBLIES WITH ROLL PINS THAT MAY NOT REMAIN IN PLACE THE IGNITION LOCK CYLINDER MAY LOOSEN CAUSING THE STEERING COLUMN TO LOCK UP WHEN THE VEHICLE IS TURNED OFF FORD IS ALSO RECALLING 3900 1993MODEL PROBE CARS TO REPLACE PINS IN THE LIFT GATE THAT MAY BE TOO SHORT TO HOLD THE STRUT IN PLACE WHICH COULD CAUSE THE LIFT GATE TO DROP UNEXPECTEDLY WHEN OPEN FORD SAID AN ESTIMATED 100 PROBES MAY HAVE THIS PROBLEM FORD SAID IT IS AWARE OF NO ACCIDENTS OR INJURIES RELATED TO EITHER CONDITION REPAIRS WILL BE FREE 9306290017 930629 ROLE OF MUNICIPALBOND REFINANCINGS IS LIKELY TO SHRINK ANALYSTS BELIEVE BY LYNN K ADLER SPECIAL TO THE WALL STREET JOURNAL NEW YORK REFINANCINGS PROBABLY WILL PLAY A MUCH SMALLER ROLE IN OVERALL MUNICIPAL BOND ISSUANCE IN THE MONTHS AHEAD EVEN IF INTEREST RATES REMAIN LOW ANALYSTS PREDICT FIGURES FROM SECURITIES DATA CO TO BE RELEASED TOMORROW ARE EXPECTED TO SHOW THAT THIS YEAR'S RATE SLIDE GENERATED MORE THAN 90 BILLION OF REFINANCING ISSUANCE OR TWOTHIRDS OF ALL LONGTERM MUNI DEBT SOLD IN THE FIRST HALF THAT WOULD BE A RECORD FOR REFINANCINGS IN ANY CALENDAR HALF AND PROBABLY HELPED BOOST OVERALL MUNI ISSUANCE TO A SEMIANNUAL RECORD ALSO BUT THE FLOOD IS EXPECTED TO SUBSIDE BY LATE SUMMER AN AWFUL LOT OF LARGE ISSUERS THAT HAD REFUNDINGS THAT MET SOME SORT OF STANDARD LIKE A 5 SAVINGS HAVE ALREADY BEEN DONE SAID GEORGE FRIEDLANDER A MANAGING DIRECTOR AT SMITH BARNEY HARRIS UPHAM & CO THE DECLINE NO DOUBT WILL DISAPPOINT WALL STREET FIRMS WHICH HAVE BEEN RAKING IN FEES ON THE TORRENT OF MUNI REFINANCINGS WHICH TRADERS CALL REFUNDINGS IT COULD ALSO MEAN REDUCED TRADING VOLUME IN CERTAIN TREASURY DEBT BECAUSE MUNI ISSUERS HAVE BEEN AVID BUYERS OF INTERMEDIATETERM TREASURYS THIS YEAR WHEN AN ISSUER REFUNDS MUNI BONDS IT BUYS TREASURYS TO PLACE IN ESCROW FOR THE OLD BONDS UNTIL THEY CAN BE RETIRED THE NEW DEBT IS OFTEN SOLD WELL BEFORE THE CALL DATE ON THE OLD HIGHERYIELDING DEBT WITH LONGTERM INTEREST RATES LOW AND POSSIBLY HEADED LOWER HOW COULD REFUNDINGS DECLINE THE ANSWER STEMS FROM A CHANGE IN FEDERAL TAX LAW UNDER THE TAX REFORM ACT OF 1986 PRIOR TO THE ACT A MUNICIPALITY COULD REFUND DEBT AS OFTEN AS IT WANTED BUT UNDER THE NEW LAW MUNIS SOLD BEFORE 1986 COULD BE REFUNDED BEFORE MATURITY JUST TWICE ISSUES SOLD IN 1986 OR AFTER COULD BE REFUNDED ONLY ONCE MANY ISSUERS ALREADY HAVE USED UP THEIR OPTIONS TO REFINANCE OTHERS WHO MAY HAVE JUST ONE CHANCE LEFT WILL BE HIGHLY SELECTIVE ABOUT WHEN TO COME TO MARKET AS AN ISSUER YOU HAVE TO BE A LOT CHOOSIER ABOUT WHEN YOU GO OUT AND REFUND SAID JIM OFCARCIK SPECIAL ASSISTANT TO THE ILLINOIS COMPTROLLER WE'RE AT A POINT NOW SEVEN YEARS AFTER THE TAX ACT TOOK EFFECT WHERE THERE ARE FEWER AND FEWER ISSUES STILL OUTSTANDING TO CONSIDER REFUNDING DESPITE A LOBBYING EFFORT BY INVESTMENT BANKERS THE MUNI REFUNDING CAP IS UNLIKELY TO BE LOOSENED AN INTERNAL REVENUE SERVICE OFFICIAL SAID TAXEXEMPT ADVANCE REFUNDINGS ARE A THORN IN THE SIDE OF THE FEDERAL GOVERNMENT THE REASON LOST REVENUE LET'S SAY AN ISSUER SOLD 100 MILLION OF 11 BONDS IN 1985 THAT ARE CALLABLE IN 2000 AND DUE IN 2005 THIS YEAR THE ISSUER REFINANCED THOSE BONDS WITH A NEW 5 1/2 ISSUE THE ORIGINAL BONDS REMAIN OUTSTANDING UNTIL THE 2000 CALL DATE UNTIL THE FIRST ISSUE IS RETIRED THERE WILL BE DOUBLE THE AMOUNT OF TAX EXEMPT BONDS OUTSTANDING ADVANCE REFUNDINGS ARE AMONG THE LEAST FAVORED ASPECTS OF TAXEXEMPT FINANCINGS BECAUSE OF THEIR BURDEN ON THE FEDERAL GOVERNMENT SAID JOHN J CROSS III AN IRS OFFICIAL THERE ARE TWO SETS OF BONDS TWO SETS OF SUBSIDIZED TAXEXEMPT INTEREST OUT THERE FOR ONE PROJECT MANY OF THE RESTRICTIONS PLACED ON TAXEXEMPT BONDS IN THE 1986 TAX ACT WERE SPURRED BY THE PROLIFERATION OF ADVANCE REFUNDINGS WHEN THEY WERE UNLIMITED HE ADDED NOW INVESTMENT BANKERS ARE PUSHING FOR A REDEFINITION OF THE TAX ACT'S REFUNDING CAP SAID MR CROSS THEY WOULD LIKE ISSUERS TO BE ALLOWED TO REFUND DEBT MORE FREQUENTLY AS LONG AS AN ISSUER NEVER HAD OUTSTANDING MORE THAN TWO ISSUES FINANCING THE SAME PROJECT HE ASSERTED ESSENTIALLY THAT WOULD REPRESENT A ROLLING REFUNDING RULE BUT FROM A REGULATORY PERSPECTIVE ADDED MR CROSS THIS SUGGESTION IS A REAL STRETCHAND IS HIGHLY UNLIKELY TO GO ANYWHERE 9306290016 930629 UAL PLANS TO CUT MORE CAPACITY THAN EXPECTED BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO UNDERSCORING THE AIRLINE INDUSTRY'S RETRENCHMENT UAL CORP'S UNITED AIRLINES UNIT SAID CAPACITY CUTS ON ITS US ROUTES WILL BE DEEPER AND OVERSEAS GROWTH MORE MODEST THAN EXPECTED THE CARRIER SAID IT PLANS TO RETIRE 25 OLDERMODEL WIDEBODY AIRCRAFT FROM ITS FLEET THROUGH A PHASEOUT THAT WILL BEGIN IN SEPTEMBER AND BE COMPLETED BY LATE 1994 TWO MONTHS AGO THE NUMBER OF THE OLDER PLANES DUE TO LEAVE SERVICE HAD BEEN EXPECTED TO BE CLOSER TO NINE UNITED CALLED REMOVAL OF THE PLANES PART OF ITS EFFORTS TO REDUCE UNECONOMICAL CAPACITY IN CUTTING CAPACITY UNITED WILL JOIN DELTA AIR LINES AND AMR CORP'S AMERICAN AIRLINES WHICH EARLIER THIS YEAR ANNOUNCED PLANS TO GROUND AIRCRAFT UAL CHAIRMAN STEPHEN M WOLF SAID AT THE COMPANY'S ANNUAL MEETING IN APRIL THAT UAL WOULD REDUCE ITS WIDEBODY FLEET BY AT LEAST NINE PLANES HE ALSO SAID DOMESTIC CAPACITY WOULD DIP IN 1994 BY 05 AND OVERSEAS CAPACITY WOULD RISE 77 YESTERDAY THE COMPANY SAID IT NOW PLANS FOR US CAPACITY TO DROP NEXT YEAR BY A MORE SUBSTANTIAL 5 WHILE OVERSEAS GROWTH WILL ONLY BE 5 A SPOKESMAN DECLINED TO DISCLOSE WHAT ROUTES WILL BE AFFECTED BY THE MOVES THE ANNOUNCEMENT SUGGESTS THAT UNITED HAS OPTED IN THE FACE OF GRIM INDUSTRY CONDITIONS TO AMPLIFY ITS REDUCTIONS IN THE US MARKET AND REDUCE THE SCALE OF WHAT HAS BEEN AN AGGRESSIVE PUSH INTO THE INTERNATIONAL MARKET BOTH WINGS HOLDINGS INC'S NORTHWEST AIRLINES AND JAPAN AIR LINES RECENTLY CUT CAPACITY ON THEIR PACIFIC ROUTES A BIG UNITED MARKET THE 25 AIRCRAFT TO BE RETIRED INCLUDE 15 MCDONNELL DOUGLAS CORP DC10S AND 10 BOEING CO 747S THE SCHEDULED RETIREMENTS OF THE OLDER AIRCRAFT WON'T SIGNIFICANTLY DECREASE THE SIZE OF UNITED'S FLEET BECAUSE DELIVERIES OF NEW PLANES WILL ALMOST ENTIRELY OFFSET THE CUTS BUT THE MOVE MEANS THAT UNITED'S FLEET WON'T SHOW THE GROWTH THAT HAD BEEN ANTICIPATED AIRLINE CAPACITY IS TYPICALLY MEASURED IN AVAILABLE SEAT MILES ON THAT BASIS ABOUT 65 OF UAL'S CURRENT CAPACITY IS IN DOMESTIC FLIGHTS WITH OVERSEAS FLIGHTS REPRESENTING 35 THROUGH THE FIRST FIVE MONTHS OF 1993 TOTAL AVAILABLE SEAT MILES ROSE 126 TO 5978 BILLION THE MOVE CALLS FOR UNITED TO RETIRE FOUR DC10S AND THREE 747S THIS YEAR WITH 11 MORE DC10S AND SEVEN 747S OUT OF ACTION BY THE END OF OCTOBER 1994 THE CARRIER'S FLEET WHICH IS CURRENTLY AT 543 PLANES WILL TOTAL 541 AIRCRAFT AT THE END OF NEXT YEAR UAL EARLIER DISCLOSED PLANS TO TAKE OUT OF SERVICE 29 OLDER BOEING 727S THIS YEAR IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY UAL SHARES ROSE 1625 TO 123 9306290015 930629 WHO'S NEWS KODAK MANAGER SETS EARLYRETIREMENT DATE FOR LATER THIS YEAR ROCHESTER NY EASTMAN KODAK CO'S NO 2 IMAGING MANAGER ANNOUNCED PLANS TO RETIRE AT THE END OF THE YEAR JUST MONTHS AFTER THE COMPANY DISCLOSED IN ITS PROXY THAT IT TOOK EXTRA STEPS TO DELAY HIS DEPARTURE WILLIAM F FOWBLE 55 YEARS OLD WON'T BE REPLACED THE PHOTOGRAPHY CHEMICALS AND HEALTHCARE CONCERN SAID MR FOWBLE HAD PLANNED TO RETIRE IN 1991 FOLLOWING A RESTRUCTURING THAT EFFECTIVELY LEFT HIM OUT OF CONTENTION FOR THE COMPANY'S CHAIRMANSHIP KODAK CONVINCED HIM TO STAY BY EXTENDING HIS OPTION TO TAKE AN EARLYRETIREMENT PACKAGE ORIGINALLY DUE TO EXPIRE AT THE END OF 1991 ACCORDING TO THE PROXY THE OPTION WAS EXTENDED UNTIL A LATER DATE WHICH WAS NOT DISCLOSED THE PACKAGE INCLUDES A YEAR'S SALARY BRIDGE PAYMENTS EQUAL TO SOCIAL SECURITY PAYMENTS UNTIL MR FOWBLE REACHES AGE 62 AND LIFETIME HEALTH AND DENTAL BENEFITS BEFORE THE 1991 RESTRUCTURING MR FOWBLE WAS ONE OF FOUR GROUP PRESIDENTS REPORTING DIRECTLY TO CHAIRMAN KAY R WHITMORE AFTER THE SHAKEUP MR FOWBLE REPORTED TO LEO JACK THOMAS PREVIOUSLY AN EQUAL THE MOVE EFFECTIVELY KNOCKED MR FOWBLE OUT OF WHAT HAD BEEN A FOURWAY RACE FOR THE CHAIRMAN'S SEAT MR FOWBLE CURRENTLY IS SENIOR VICE PRESIDENT AND EXECUTIVE VICE PRESIDENT OF THE COMPANY'S IMAGING GROUP ONLY TWO INSIDERS REMAIN IN THE CHAIRMAN'S RACE MR THOMAS WHO HEADS KODAK'S 11 BILLION IMAGING BUSINESS AND WILBUR J PREZZANO HEAD OF THE 5 BILLION HEALTHCARE BUSINESS THE THIRD REMAINING GROUP PRESIDENT EARNEST W DEAVENPORT JR IS LEAVING KODAK AT THE END OF THE YEAR WHEN HIS EASTMAN CHEMICAL UNIT IS SPUN OFF HE WILL REMAIN HEAD OF THE BUSINESS WHEN THE SPINOFF IS COMPLETE 9306290014 930629 WHO'S NEWS BORDEN MAY BE BIGGEST TEST YET FOR SHAMES BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL EVEN WITH 22 YEARS OF EXPERIENCE IN THE FOOD INDUSTRY ERVIN R SHAMES MAY HAVE BITTEN OFF HIS BIGGEST CHALLENGE YET AS THE NEW PRESIDENT AND CHIEF OPERATING OFFICER OF BORDEN INC MR SHAMES WHO WAS NAMED TO THE POST YESTERDAY AS EXPECTED COMES BACK TO THE FOOD INDUSTRY FROM STRIDE RITE CORP WHERE HE HAD BEEN CHIEF EXECUTIVE OFFICER SINCE 1990 AT BORDEN BEST KNOWN FOR ITS DAIRY PRODUCTS AND SNACK FOODS THE 52YEAROLD MR SHAMES FACES THE DOUBLY DIFFICULT TASK OF BEEFING UP A LACKLUSTER BRAND AT A TIME WHEN EVEN THE NATION'S MOST STELLAR BRANDS ARE TAKING A BEATING BORDEN PRODUCTS CONTINUE TO LAG BEHIND MORE POWERFUL RIVALS SUCH AS PHILIP MORRIS COS' KRAFT GENERAL FOODS INC WHERE MR SHAMES SPENT MUCH OF HIS CAREER OVERSEEING SUCH POWERFUL BRANDS AS JELLO COOL WHIP AND MAXWELL HOUSE AN AGGRESSIVE AD CAMPAIGN IN ITS DAIRY BUSINESS UNVEILED LAST NOVEMBER AND REVIVING ITS 56YEAR OLD ELSIE THE COW SYMBOL HAS DONE LITTLE TO BOOST SALES OF BORDEN PRODUCTS MOREOVER BORDEN CONTINUES TO TURN IN A POOR PERFORMANCE DESPITE AN AMBITIOUS EFFORT BEGUN LATE LAST YEAR TO REORGANIZE AND CONSOLIDATE ITS FARFLUNG BUSINESSES WHICH OPERATED ALMOST AUTONOMOUSLY FOR YEARS THE DOCTOR KEEPS PRESCRIBING MEDICINE BUT THE PATIENT NEVER GETS WELL SAYS JOHN MCMILLIN ANALYST AT PRUDENTIAL SECURITIES INC THERE ARE STILL NO SIGNS OF IMPROVEMENT BORDEN HAS HAD SEVEN CONSECUTIVE QUARTERS OF DECLINES IN OPERATING EARNINGS AND ITS STOCK PRICE HAS DWINDLED TO ABOUT 19 FROM ABOUT 30 A LITTLE MORE THAN A YEAR AGO BORDEN SHARES CLOSED YESTERDAY AT 19125 UP 875 CENTS OR 48 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FOR THE FIRST QUARTER BORDEN REPORTED A MEAGER PROFIT OF 324 MILLION OR 23 CENTS A SHAREREFLECTING LOWER SALES AND EARNINGS IN ALL FOUR OF ITS MAJOR BUSINESS UNITS IN THE 1992 FIRST QUARTER BORDEN HAD A 1705 MILLION NET LOSS AFTER A 229 MILLION ACCOUNTING CHARGE ANALYSTS AREN'T HOLDING OUT MUCH HOPE FOR THE SECOND QUARTER THEIR ESTIMATES RANGE FROM 23 TO 30 CENTS A SHARE COMPARED WITH 55 CENTS A SHARE A YEAR EARLIER INDEED WHILE MANY ADMIRE THE AMBITIOUS EFFORTS OF BORDEN'S BLUNT CHIEF EXECUTIVE OFFICER ANTHONY S D'AMATO WHO RECRUITED MR SHAMES THEY WONDER WHETHER THE COMPANY HAS TOO MUCH ON ITS PLATE AS IT ATTEMPTS TO CHANGE BOTH ITS CORPORATE CULTURE AND ITS PRODUCTS' PERFORMANCE IT'S JUST MORE DIFFICULT FOR AN ORGANIZATION TO FOCUS ON ITS INDUSTRY WHILE TRYING AT THE SAME TIME TO TOTALLY REVAMP THE WAY IT DOES BUSINESS SAYS NOMI GHEZ ANALYST AT GOLDMAN SACHS & CO THE FACT IS EARNINGS MOMENTUM IS GETTING WORSE NOT BETTER IF WE COULD CHOOSE OUR TIME PERIOD THIS WOULDN'T BE IT MR D'AMATO SAYS BUT THERE'S NO CHAOS AT BORDEN WE KNOW EXACTLY WHAT WE'RE TRYING TO DO AND EXACTLY WHAT WE'RE TRYING TO EXECUTE WE'RE A CONTROLLED ORGANIZATION GOING DOWN A SPECIFIC DIRECTION AND WE WANT TO GET THERE SOONER THAN LATER INDEED BORDEN WHOSE NATIONAL BRANDS INCLUDE CRACKER JACK SNACKS AND EAGLE BRAND CONDENSED MILK HAS LITTLE CHOICE BUT TO MAKE CHANGES NOW LAST YEAR PRICE WARS BUFFETED A NUMBER OF THE COMPANY'S BIGGEST BRANDS PARTICULARLY IN PROCESSED CHEESE AND ALTHOUGH BORDEN HAS THE ONLY NATIONAL PASTA BRAND CREAMETTE ITS SALES ALSO WERE HURT BY PRICECUTTING BY VARIOUS REGIONAL COMPETITORS BORDEN ALSO DEPENDS ON A NETWORK OF REGIONAL BRANDS MANY ACQUIRED IN THE 1980S AS RIVALS WERE PAYING HUGE PREMIUMS TO ACQUIRE STAR BRANDS BORDEN HOPED THESE SMALL BRANDS WOULD PROVE TO BE A BARGAIN BUT FOUND THAT THEY WERE OFTEN TOO WEAK TO COMPETE WITH NATIONAL RIVALS HIGH ON MR SHAMES LIST OF PRIORITIES WILL BE BORDEN'S SNACK FOOD BUSINESS WHICH HAS BEEN SQUEEZED BY THE MUCHLARGER FRITOLAY UNIT OF PEPSICO INC ON ONE HAND AND ANHEUSERBUSCH COS' AGGRESSIVE EAGLE SNACKS ON THE OTHER BORDEN WHICH HAD BEEN THE NATION'S SECONDLARGEST SNACK FOOD MARKETER THROUGH SUCH REGIONAL BRANDS AS WISE HAS SOLD OFF ITS WEST COAST BUSINESS AND SLASHED THE NUMBER OF PRODUCT VARIATIONS IT OFFERS TO 1800 FROM 3200 THERE ARE BUSINESSES WE'VE HAD OUT THERE IN THE MARKETPLACE THAT HAVEN'T BEEN PROFITABLE FOR TOO LONG SAYS MR D'AMATO WE'VE MANAGED OUR SNACK BUSINESS ON THE BASIS OF VOLUME AND MARKET SHARE AND BRAGGING RIGHTS OF BEING NUMBER 2 BORDEN'S PROCESSEDCHEESE PRODUCTS SOLD UNDER THE BORDEN AND LITELINE BRANDS ALSO HAVE BEEN FACING HEAVY PRICE COMPETITION FROM MARKET LEADER KRAFT BORDEN IS STILL UNDER KRAFT'S CONTROL MR MCMILLIN SAYS IT LOOKS TO ME LIKE NO CYLINDERS ARE RUNNING OTHERS HAVE ALSO BEEN CRITICAL OF BORDEN'S LATEST ADVERTISING CAMPAIGN THAT REVIVES THE ELSIE THE COW CHARACTER THEY NOTE THAT FLUID MILK A LARGE PORTION OF BORDEN'S DAIRY BUSINESS IS A COMMODITY ITEM UNLIKELY TO BE HELPED BY AN ADVERTISING CAMPAIGN IT MIGHT BE A TOTAL WASTE OF MONEY SAYS WILLIAM LEACH AN ANALYST AT DONALDSON LUFKIN & JENRETTE MR D'AMATO CONCEDES THE CAMPAIGN PROBABLY WON'T TURN AROUND SALES IMMEDIATELY BUT SAYS IT WILL ADD INCREMENTAL VALUE TO THE PRODUCT LINE THE OVERALL THRUST OF BORDEN'S EFFORTS HAS BEEN CONSOLIDATION IN THE PAST BORDEN'S MYRIAD BRANDS WERE HANDLED INDEPENDENTLY OF ONE ANOTHER AND THE COMPANY DEALT WITH NEARLY 19 SEPARATE ADVERTISING AGENCIES AND MORE THAN 100 SALES PROMOTION FIRMS LAST YEAR IN RESPONSE TO A REQUEST FROM A LEADING NATIONAL RETAIL CHAIN WHICH WAS DEALING WITH 28 DIFFERENT BORDEN REPRESENTATIVES AND WANTED TO DEAL WITH JUST ONE BORDEN BEGAN AN EFFORT TO INTEGRATE ITS SALES AND MARKETING TO ALL RETAILERS MR D'AMATO HOPES THAT THE APPOINTMENT OF MR SHAMES WILL ACCELERATE HIS EFFORT TO UNITE BORDEN'S THREE FOOD DIVISIONS NICHE GROCERY DAIRY AND SNACK FOOD BORDEN ALSO HOPES MR SHAMES WILL BE A POWERFUL MAGNET FOR THE KIND OF MARKETING TALENT THE COMPANY FEELS IT WILL NEED UNDER ITS NEW STRUCTURE MR D'AMATO SAYS HE HOPES TO HIRE EIGHT ADDITIONAL FOOD EXECUTIVES TO OVERSEE BORDEN'S UNIFIED EFFORTS IN SUCH AREAS AS WAREHOUSE CLUB SALES AND OPERATIONS 9306290013 930629 CORPORATE FOCUS STRIDE RITE IS CAUGHT FLATFOOTED BY CEO'S DEPARTURE SHOE CONCERN FACING TROUBLES CONDUCTS THIRD SEARCH IN FOUR YEARS BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL CAMBRIDGE MASS STRIDE RITE CORP IS LOOKING AGAIN FOR A NEW TOP EXECUTIVE AND WHOEVER IT FINDS WILL HAVE BIG SHOES TO FILL THE UNEXPECTED DEPARTURE OF ERVIN R SHAMES AFTER LESS THAN A YEAR AS CHAIRMAN TO BECOME PRESIDENT OF BORDEN INC COMES AT A DIFFICULT TIME FOR THE MAKER OF KEDS SPERRY TOPSIDERS AND STRIDE RITE SHOES AFTER YEARS OF RAPID GROWTH SALES OF THE COMPANY'S POPULAR BUT EXPENSIVE KEDS BRAND HAVE BEEN SLOWED BY CHEAP RIVALS AND A COUNTERATTACK WITH ITS OWN LINE OF LOWERPRICED SHOES HAS FLOPPED SPERRY TOPSIDERS BOAT SHOES ALSO ARE FACING ROUGH SEAS AS SALES CONTINUE TO REMAIN FLAT DESPITE EFFORTS TO REVIVE THE ONCEFASHIONABLE LINE AND THE COMPANY HAS SCALED BACK ITS CHAIN OF STRIDE RITE CHILDREN'S SHOE STORES BECAUSE MANY WERE UNPROFITABLE YESTERDAY THE COMPANY REPORTED AN 11 DROP IN FISCAL SECONDQUARTER NET INCOME ON A 4 DECLINE IN SALES MR SHAMES 52 YEARS OLD SAYS HE LEFT FOR THE OPPORTUNITY TO RUN A BIGGER COMPANY IN THE FOOD INDUSTRY HIS FIRST LOVE AND NOBODY BLAMES HIM FOR STRIDE RITE'S RECENT WOES BUT HIS DEPARTURE IS A BIT EMBARRASSING NONETHELESS BECAUSE IT MARKS THE SECOND TIME IT HAS LOST A HANDPICKED SUCCESSOR TO LONGTIME CHAIRMAN AND CHIEF EXECUTIVE ARNOLD HIATT RONALD J JACKSON A TOYINDUSTRY EXECUTIVE WAS RECRUITED FOUR YEARS AGO AS MR HIATT'S HEIR APPARENT ONLY TO LEAVE SIX MONTHS LATER TO HEAD FISHERPRICE INC MR SHAMES WHO WAS RUNNERUP TO MR JACKSON IN THAT INITIAL JOB SEARCH WAS THEN HIRED AS PRESIDENT AND CHIEF EXECUTIVE ALTHOUGH STRIDE RITE SAYS IT WILL LOOK AT INTERNAL AND EXTERNAL CANDIDATES ONE INSIDER SAYS IT IS MORE LIKELY TO AGAIN GO OUTSIDE STRIDE RITE HAS A GREAT BULLPEN IT JUST NEEDS THAT ACE STARTER THE INSIDER NOTES MEANWHILE THE COMPANY HAS BROUGHT A 26YEAR STRIDE RITE VETERAN FORMER VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER JOHN J PHELAN OUT OF RETIREMENT AS INTERIM PRESIDENT AND CHIEF EXECUTIVE OFFICER DONALD R GANT A DIRECTOR OF GOLDMAN SACHS GROUP LP AN AFFILIATE OF GOLDMAN SACHS CO WILL SERVE AS CHAIRMAN UNTIL A REPLACEMENT IS FOUND THE CHALLENGE FACING MR SHAMES'S SUCCESSOR WILL BE TO FIGURE OUT A WAY TO GET STRIDE RITE BACK ON THE FAST TRACK AFTER GROWING 17 TO 19 ANNUALLY IN MUCH OF THE MID1980S TO LATE 1980S STRIDE RITE'S SALES ROSE A MEAGER 2 LAST YEAR THINGS HAVE GOTTEN WORSE SO FAR THIS YEAR THE COMPANY ANNOUNCED YESTERDAY THAT SALES FELL 38 TO 1645 MILLION FROM 171 MILLION FOR THE SECOND QUARTER ENDED MAY 28 AND NET INCOME DECLINED 11 TO 194 MILLION OR 38 CENTS A SHARE FROM 218 MILLION OR 42 CENTS A SHARE A YEAR AGO FOR THE FIRST HALF SALES FELL 15 TO 3053 MILLION FROM 310 MILLION AS A RESULT ANALYSTS ARE LESS KEEN ON THE STOCK IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE STRIDE RITE SHARES CLOSED AT 1575 UP 50 CENTS WELL BELOW THE STOCK'S 52WEEK HIGH OF 25375 I THINK IT'S GOING TO TAKE THEM MORE LIKE 18 MONTHS INSTEAD 12 MONTHS TO TURN THE LINE AROUND SAID JOSIE ESQUIVEL AN ANALYST FOR LEHMAN BROS STRIDE RITE ISN'T THE ONLY SHOE COMPANY WHOSE GROWTH HAS SLOWED NIKE INC THE ATHLETIC FOOTWEAR INDUSTRY LEADER AND NO 2 REEBOK INTERNATIONAL LTD RECENTLY WERE CAUGHT FLATFOOTED BY A FASHION CHANGE BUT BOTH COMPANIES CAN DEPEND ON A CORE OF FITNESS BUFFS WHO BUY SNEAKERS BASED MORE ON DURABILITY RATHER THAN LOOKS WHILE STRIDE RITE CATERS TO A LARGER DEGREE TO FASHIONFICKLE CONSUMERS THE MAIN PROBLEM WITH THE KEDS BRANDS WHICH ACCOUNTS FOR NEARLY 60 OF STRIDE RITE'S SALES HAS BEEN KNOCKOFFS AND A SLIGHT SHIFT IN FASHION AWAY FROM SNEAKERS THE MAJOR CHALLENGE FOR STRIDE RITE IS TO KEEP COMING UP WITH NEW COLORS AND DESIGNS IN OUR SHOES TO SUSTAIN CONSUMER INTEREST SAYS MR PHELAN AT THE SAME TIME A BUNCH OF LOWERPRICED KNOCKOFF PRODUCTS SOME OFFSHORE BRANDS FLOODED THE MARKET THESE PRODUCTS TYPICALLY RETAIL FOR 12 TO 15 COMPARED WITH 25 OR MORE FOR KEDS STRIDE RITE TRIED TO TAKE ON CHEAPER RIVALS WITH ITS OWN LOWERPRICED KEDS & CO BRAND WHICH SELL FOR ABOUT 15 EACH BUT RETAILERS WEREN'T ENTHUSIASTIC ABOUT THE INTRODUCTION THIS SPRING AND STRIDE RITE HAS DECIDED TO DISCONTINUE THE LINE INSTEAD IT NOW WILL ALLOW RETAILERS TO DISCOUNT THE REGULAR KEDS LINE A POLICY THE COMPANY HAD THUS FAR DISCOURAGED MEANWHILE STRIDE RITE WILL TRY TO PUT A NEW SHINE ON ITS KEDS SHOE BY EMBROIDERING ITS HIGHTOP AND LOWTOP CANVAS SHOW LINE WITH PICTURES OF LOONEY TUNES CHARACTERS UNDER A LICENSE WITH WARNER BROS INC A UNIT OF TIME WARNER INC THE COMPANY SAYS ORDERS FROM RETAILERS HAVE BEEN BRISK TO ATTRACT NEW CUSTOMERS STRIDE RITE HAS STARTED SELLING A NEW LINE OF MACHINEWASHABLE LEATHER KEDS IT ALSO IS TRYING TO BROADEN THE SHOE'S APPEAL WHICH HAS BEEN MOSTLY TO WOMEN AND CHILDREN BY MARKETING TO MEN THOUGH WITHOUT MUCH SUCCESS SO FAR WE HAVE YET TO COME UP WITH THE RIGHT PRODUCT FOR MEN CONCEDES MR PHELAN TODAY MOST MEN SEEM TO WANT TO BE SEEN IN NIKES OR REEBOKS ALTHOUGH STRIDE RITE HAS MOSTLY STUCK WITH THE FASHION SIDE OF THE MARKET IT APPEARS THE COMPANY WILL STEAL A PAGE OUT OF NIKE AND REEBOK EMPHASIZING PERFORMANCE FOR ITS MALEORIENTED SPERRY TOPSIDER BOAT SHOES FOR INSTANCE IT WILL BE THE OFFICIAL FOOTWEAR SUPPLIER TO THREE MAJOR WATERSPORTS EVENTS INCLUDING THE US SAILING TEAM IN THE 1994 OLYMPICS NEXT YEAR'S INTERCOLLEGIATE YACHT RACING ASSOCIATION AND THE DENNIS CONNOR'S AMERICA'S CUP CHALLENGE IN 1995 IN THE PAST WE HAVE MOSTLY TRIED TO MAKE A STREETTYPE PRODUCT AND NOT A SPORTSORIENTED TOPSIDER MR PHELAN EXPLAINS PART OF STRIDE RITE'S PROBLEM HAS BEEN ITS CHAIN OF RETAIL OUTLETS THAT SELL CHILDREN'S SHOES LAST YEAR IT CLOSED OR SOLD 19 OF ITS UNDERPERFORMING STORES REDUCING THE TOTAL NUMBER TO ABOUT 170 STORES DOWN FROM ABOUT 250 STORES IN 1989 FINDING A NEW CHIEF EXECUTIVE MAY TAKE TWO TO SIX MONTHS BUT THE COMPANY BELIEVES THAT MUCH OF WHAT HAS TO BE DONE TO GET STRIDE RITE BACK IN SHAPE IS UNDER WAY MR PHELAN SAYS I FEEL LIKE A ORCHESTRA CONDUCTOR HE SAID AND AT THIS POINT I FEEL CONFIDENT THE SHOW WILL GO ON 9306290012 930629 WHO'S NEWS LUMEX INC LUMEX INC NEW YORK MARK ABRAHAMS PRESIDENT OF THIS COMPANY'S CYBEX DIVISION AND A VICE PRESIDENT OF LUMEX RESIGNED TO PURSUE OTHER INTERESTS MR ABRAHAMS 41 YEARS OLD JOINED LUMEX A MANUFACTURER OF PRODUCTS FOR THE HEALTHCARE AND PHYSICAL THERAPY INDUSTRIES IN NOVEMBER 1990 LAWRENCE N COHEN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LUMEX ASSUMED OPERATING RESPONSIBILITIES WHILE THE COMPANY SEARCHES FOR A REPLACEMENT 9306290011 930629 UNITED WAY EXPECTS FIRST DECLINE IN YEARS CHARITIES FACE CUTS NEW YORK AS THE UNITED WAY OF AMERICA ENDS ITS 199293 FUNDRAISING CAMPAIGN ANTICIPATING ITS FIRST DOWN YEAR SINCE WORLD WAR II MANY CHARITIES ARE BRACING FOR A SHORTFALL A SURVEY OF 71 OF THE LARGEST UNITED WAY ORGANIZATIONS BY THE WASHINGTONBASED CHRONICLE OF PHILANTHROPY A TRADE PUBLICATION FOR NONPROFIT GROUPS FOUND THAT 45 PLAN TO SCALE BACK ALLOCATIONS THEY MAKE TO LOCAL CHARITIES THE CUTS RANGE FROM 04 IN PLACES LIKE COLUMBUS OHIO AND GRAND RAPIDS MICH TO 40 BY THE UNITED WAY BAY AREA WHICH HELPS TO FUND 350 SAN FRANCISCOAREA CHARITIES ONE OF THAT GROUP'S BENEFICIARIES THE AMERICAN RED CROSS BAY AREA CHAPTER SAYS THE REDUCED FUNDING MEANS IT WILL LAY OFF 28 OF ITS 131 EMPLOYEES AND CURB SPENDING BY 500000 THE SURVEY FOUND MOST OF THE CALIFORNIA UNITED WAYS TOOK A BEATING SAYS MIKE WARGO HEAD OF COMMUNITY CAMPAIGNS FOR UNITED WAY OF AMERICA BASED IN ALEXANDRIA VA THE NETWORK OF FUNDRAISING ORGANIZATIONS INCLUDES 2000 LOCAL GROUPS THAT TOGETHER FUND MORE THAN 44000 CHARITIES THE CAMPAIGN BY UNITED WAYS OF TRISTATE WHICH COVERS PARTS OF NEW YORK NEW JERSEY AND CONNECTICUT DECLINED 85 TO 1115 MILLION THE TRISTATE ORGANIZATION SAYS IT WILL CONSIDER DRAWING ON RESERVES ACCUMULATED IN BETTER TIMES TO HELP STAUNCH ITS DECLINE THE UNITED WAY OF NEW YORK CITY WHICH FUNDS 600 AGENCIES SAYS A NEW TRISTATE FORMULA WOULD MEAN A 149 DROP IN TRISTATE'S CONTRIBUTION TO THE CITY FUND UNLESS ADJUSTMENTS ARE MADE NATIONWIDE THE CAMPAIGN IS RUNNING ABOUT 35 BEHIND YEAREARLIER NUMBERS ACCORDING TO THE NATIONAL ORGANIZATION MARKING THE FIRST TIME SINCE THE 1940S THAT A CAMPAIGN RAISED LESS MONEY THAN THE PREVIOUS YEAR'S NATIONAL TOTALS HOWEVER AREN'T EXPECTED FOR A FEW WEEKS AS MANY LOCAL GROUPS HAVEN'T YET REPORTED EXECUTIVES AT NATIONAL HEADQUARTERS ATTRIBUTE THE DECLINE TO A SMALLER WORK FORCE ALSO LOCAL UNITED WAYS SAY MANY DONORS APPEAR TO HAVE DESIGNATED THEIR GIFTS TO SPECIFIC CHARITIES FURTHER REDUCING THE OVERALL POOL THE 199293 UNITED WAY DRIVE IS THE FIRST TO BE HELD SINCE THE ORGANIZATION'S 1992 SCANDAL OVER COMPENSATION AND PERKS AT ITS NATIONAL HEADQUARTERS 9306290010 930629 CORRECTIONS & AMPLIFICATIONS THE GENERALIZED SYSTEM OF PREFERENCES A GOVERNMENT PROGRAM THAT PROVIDES DUTYFREE STATUS TO CERTAIN IMPORTS FROM DEVELOPING COUNTRIES IS SCHEDULED TO EXPIRE JULY 4 AN ARTICLE YESTERDAY INCORRECTLY STATED THE PROGRAM IS SCHEDULED TO LAPSE NEXT YEAR PENDING LEGISLATION WOULD EXTEND THE PROGRAM FOR 15 MONTHS 9306290009 930629 TECHNOLOGY & HEALTH MEDICAL SYSTEM FOUND TO REDUCE UNNECESSARY CARE BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON VALUE HEALTH INC SAID A SYSTEM IT DEVELOPED TO ROOT OUT UNNECESSARY MEDICAL CARE HAS HELPED INSURERS AND HEALTH MAINTENANCE ORGANIZATIONS REDUCE TESTS AND SURGERY BY 9 THE AVON CONN PROVIDER OF MANAGED HEALTHCARE SERVICES SAID USERS OF THE SYSTEM WHICH AUTHORIZES DOCTORS TO PERFORM PROCEDURES BASED ON SCIENTIFICALLY DEVELOPED GUIDELINES SAVED A TOTAL OF MORE THAN 118 MILLION IN 1991 AND 1992 AT 48 DIFFERENT ORGANIZATIONS BASED ON REQUESTS FOR CARE THAT WERE DENIED IN ADDITION A RELATED STUDY SUGGESTS THAT IN HMOS WHERE THE SYSTEM IS USED DOCTORS ARE CHANGING THEIR PRACTICE DECISIONS AND ORDERING FEWER UNNECESSARY PROCEDURES PERHAPS IN ANTICIPATION THAT THEY WOULD BE DENIED A REFLECTION OF WHAT IS CALLED THE SENTINEL EFFECT THE RESULTING REDUCTION IN USE OF MEDICAL SERVICES LIKELY ADDS MILLIONS OF DOLLARS MORE TO THE SAVINGS SAID JACQUELINE KOSECOFF PRESIDENT AND CHIEF OPERATING OFFICER OF VALUE HEALTH SCIENCES INC A SANTA MONICA CALIF UNIT OF VALUE HEALTH IF DOCTORS ARE LEARNING THE GUIDELINES THAT THE SYSTEM IS BASED ON SHE SAID THEY DON'T PROPOSE CASES THEY UNDERSTAND TO BE INAPPROPRIATE DR KOSECOFF AND OTHER RESEARCHERS PRESENTED DATA ON THE SYSTEM AT THE ANNUAL MEETING OF THE ASSOCIATION FOR HEALTH SERVICES HERE CHANGING HOW DOCTORS PRACTICE IS A MAJOR GOAL OF POLICYMAKERS AND HEALTH PURCHASERS WHO VIEW CUTTING OUT UNNECESSARY CARE AS ONE WAY TO IMPROVE QUALITY AND SAVE MONEY AT THE SAME TIME DOCTORS ARE ANGERED AND FRUSTRATED BY MANY STRATEGIES THAT INSURERS HMOS AND OTHERS USE TO OVERSEE THEIR DECISIONS ESPECIALLY WHEN DOCTORS THINK THAT SUCH PAYERS ARE DRIVEN BY COST CONCERNS ALONE THE VALUE HEALTH PROGRAM CALLED THE MEDICAL REVIEW SYSTEM IS BASED ON RESEARCH DONE AT RAND CORP SANTA MONICA CALIF WHERE STUDIES HAVE FOUND THAT AS MUCH AS 30 OF SOME COMMON PROCEDURES ARE INAPPROPRIATE WHEN DOCTORS TREATING PATIENTS WHOSE HEALTH PLANS USE THE SYSTEM ORDER CERTAIN PROCEDURES THEY CALL A NURSE WHO USES A COMPUTERGUIDED SERIES OF QUESTIONS TO DETERMINE WHETHER A PATIENT'S SYMPTOMS CALL FOR THE TREATMENT THE NURSE ALSO INTERVIEWS THE PATIENT IN A STUDY OF MORE THAN 250000 CASES DR KOSECOFF SAID 30 WERE DENIED AFTER THE NURSE REVIEW ALL WERE REFERRED TO PHYSICIANREVIEWERS WHO AFTER FURTHER DISCUSSIONS WITH THE PATIENTS' DOCTORS EVENTUALLY DENIED A TOTAL OF 9 IN THE RELATED STUDY THE SYSTEM RESULTED IN DENIALS OF JUST 14 OF CASES AT ONE HMO BUT AS A RESULT OF THE SENTINEL EFFECT ORDERS FOR PROCEDURES COVERED BY THE SYSTEM FELL BY 16 9306290008 930629 OTC FOCUS NASDAQ STOCKS POST BROADBASED GAINS WITH TECHNOLOGY ISSUES LEADING THE WAY BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RISING BOND PRICES BOOSTED THE OVERTHECOUNTER MARKET WITH TECHNOLOGY STOCKS LEADING THE RALLY THE NASDAQ COMPOSITE INDEX ROSE 802 POINTS OR 12 TO 70283 WITHIN STRIKING DISTANCE OF ITS RECORD HIGH OF 70885 ADVANCING ISSUES TOPPED DECLINERS 1483 TO 1210 ON VOLUME OF 227 MILLION SHARES UP FROM 2194 MILLION SHARES FRIDAY LOW INTEREST RATES BROUGHT SOME AGGRESSIVE BUYING SAID ROBERT O'TOOLE HEAD OF OTC TRADING AT SHEARSON LEHMAN BROTHERS THE SHORTS HAD TO COVER AND CHASED THE MARKET HIGHER SHORT SELLERS BET THAT STOCK PRICES WILL FALL AND OFTEN ARE FORCED TO BUY STOCKS TO COVER THAT BET IF PRICES RISE ABRUPTLY TECHNOLOGY STOCKS POSTED STRONG GAINS THERE IS EXCELLENT STRENGTH ALMOST ACROSSTHEBOARD IN THE TECHNOLOGY STOCKS SAID JERRY NEWMAN AN INSTITUTIONAL TRADER WITH COWEN & CO IN SAN FRANCISCO SOFTWARE NETWORKING AND SEMICONDUCTOR STOCKS ARE ALL UP ONLY THE PERSONAL COMPUTER COMPANIES AREN'T DOING WELL INTEL JUMPED 1 3/8 TO 56 MICROSOFT ROSE 1 3/4 TO 90 1/4 CISCO SYSTEMS LEAPED 2 7/8 TO 56 1/4 ORACLE CLIMBED 2 1/2 TO 48 5/8 AND BMC SOFTWARE SURGED 3 TO 52 3/4 BUT APPLE COMPUTER ROSE ONLY 1/8 TO 40 1/8 AND DELL COMPUTER FELL 1 1/4 TO 19 7/8 DELL'S JAPANESE ARM SLASHED PRICES ON ITS PERSONAL COMPUTER LINE BY 9 TO 23 DELL ALSO SAID IT IS CONTINUING TO REBUILD ITS NOTEBOOK COMPUTER BUSINESS BUT THAT IT WILL BE SEVERAL QUARTERS BEFORE ITS PRODUCTS APPEAR IN THE NOTEBOOK MARKET CUSTOM CHROME DROPPED 3/4 TO 17 3/4 THE MORGAN HILL CALIF COMPANY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFER BY CERTAIN HOLDERS OF 12 MILLION COMMON SHARES CUSTOM CHROME IS A WHOLESALE SUPPLIER OF AFTERMARKET PARTS AND ACCESSORIES FOR HARLEYDAVIDSON MOTORCYLES WEITEK ROSE 5/8 TO 9 1/4 GRUNTAL & CO INITIATED COVERAGE OF THE STOCK WITH AN OUTPERFORM RATING GRUNTAL SAID WEITEK WILL POST A NARROWER FISCAL SECONDQUARTER OPERATING LOSS THAN THE 18CENTASHARE LOSS IN THE FIRST QUARTER IN THE SECOND QUARTER OF 1992 THE SUNNYVALE CALIF COMPANY HAD A LOSS OF 27 CENTS A SHARE WIETEK MAKES PROCESSORS THAT ENHANCE THE PERFORMANCE OF STANDARD OPERATING SYSTEMS USER INTERFACES AND APPLICATION SOFTWARE THE DAY'S MOST ACTIVE STOCK SPECTRUM INFORMATION TECHNOLOGIES SANK 1 TO 2 15/16 ON VOLUME OF 54 MILLION SHARES LATE FRIDAY THE MANHASSET NY WIRELESS DATA TRANSMISSION TECHNOLOGY FIRM SAID IT EXPECTS TO REPORT A LOSS OF 32 MILLION FOR THE FOURTH QUARTER ENDED MARCH 31 AMONG HEALTHCARE ISSUES OXFORD HEALTH PLANS DARIEN CONN ROSE 3 1/4 TO 69 3/4 INFUTECH ENGLEWOOD CLIFFS NJ WHICH SLIPPED 1/8 TO 6 1/8 SAID IT SECURED A CONTRACT FROM OXFORD HEALTH TO PROVIDE INFUSION THERAPY SERVICES FOR THE HEALTH MAINTENANCE ORGANIZATION'S ENROLLEES IN THE NEW YORK METROPOLITAN AREA CALGENE DAVIS CALIF ADDED 1 1/4 TO 13 7/8 AFTER SAYING IT WAS NOTIFIED BY THE FOOD AND DRUG ADMINISTRATION THAT ITS FOOD ADDITIVE PETITION HAS BEEN FORMALLY ACCEPTED FOR FILING AS OF JUNE 21 THE PETITION COVERS THE USE OF THE KANAMYCIN SELECTABLE MARKER GENE AS A PROCESSING AID IN THE DEVELOPMENT OF GENETICALLY ENGINEERED PLANT VARIETIES OF TOMATO OILSEED RAPE AND COTTON ELSEWHERE MID ATLANTIC MEDICAL GAINED 1 1/4 TO 24 3/8 BIOGEN IMPROVED 2 1/4 TO 31 3/4 CHIRON INCREASED 1 1/4 TO 62 3/4 AND STRYKER CORP MOVED UP 1 1/4 TO 25 1/2 BEN & JERRY'S WATERBURY VT PLUNGED 3 1/2 TO 24 THE ICE CREAM MANUFACTURER SAID IT EXPECTS SECONDQUARTER EARNINGS TO FALL SHORT OF ANALYSTS' ESTIMATES OF BETWEEN 35 CENTS AND 42 CENTS A SHARE BUT ABOVE LAST YEAR'S LEVEL OF 39 CENTS A SHARE INTERESTRATESENSITIVE STOCKS WERE MOSTLY HIGHER CORESTATES FINANCIAL ADVANCED 1 5/8 TO 56 MERIDIAN BANCORP JUMPED 1 1/4 TO 31 AND NATIONAL COMMUNITY BANKS CLIMBED 1 3/4 TO 57 1/4 THE NASDAQ UTILITY INDEX SET A RECORD SURGING 540 POINTS OR 059 TO 90737 THAT TOPPED THE PREVIOUS HIGH OF 90197 SET FRIDAY COMMUNICATIONS ISSUES HELPED DRIVE THE INDEX HIGHER MCCAW CELLULAR GOT A 1 1/8POINT BOOST TO 44 3/8 AND LIN BROADCASTING ADDED 1 TO 99 3/4 CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9306290007 930629 COMMODITIES MOST PRECIOUS METALS FUTURES PRICES DECLINE ON PROFITTAKING GOLD TUMBLES 2 TO 37610 BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRECIOUS METALS FUTURES SETTLED GENERALLY LOWER ON PROFITTAKING FOLLOWING LAST WEEK'S STRONG PERFORMANCE BY THE SECTOR TRADERS SAID ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY SHED 2 TO CLOSE AT 37610 AN OUNCE LAST WEEK THE ACTIVE AUGUST GOLD CONTRACT GAINED 560 THE MARKET STARTED OFF ON A STRONGER NOTE BUT THEN PROFITTAKING CAME IN SAID SCOTT MEYERS SENIOR COMMODITY ANALYST WITH REDEL TRADING IN NEW YORK THERE WASN'T A LOT OF ACTION AND IT LOOKS LIKE THIS COULD BE A LACKLUSTER WEEK BEFORE THE LONG JULY FOURTH WEEKEND MR MEYERS A TECHNICAL ANALYST SAID GOLD FOR AUGUST DELIVERY SHOULD ENJOY SUPPORT AT 370 AN OUNCE AND ENCOUNTER RESISTANCE AT 380 AN OUNCE WE'RE LOOKING AT A PRETTY TIGHT 10 RANGE I WOULDN'T BE SURPRISED TO SEE FURTHER PROFITTAKING TUESDAY WILLIAM O'NEILL SENIOR FUTURES STRATEGIST FOR MERRILL LYNCH SAID GOLD NEEDS TO ATTRACT INCREASING DEMAND FROM INVESTORS IF IT IS GOING TO CONTINUE ITS RECENT RALLY THE MAIN PROBLEM IS THAT THE LEVEL OF INVESTMENT DEMAND HAS SLOWED DOWN INVESTMENT DEMAND IS PROVING TO BE PRICE SENSITIVE PARTICULARLY FROM ASIA MR O'NEILL SAID GOLD A TRADITIONAL HEDGE AGAINST INFLATION ALSO WILL NEED RENEWED BOUTS OF CONCERN ABOUT INFLATION TO BREAK OUT OF ITS CURRENT RANGE THERE'S NO REAL INFLATIONARY THREAT FOR 1993 GOLD BULLS ARE LOOKING BEYOND THAT INTO 1994 BUT ANTICIPATION IS WORTH ONLY SO MUCH BEFORE YOU NEED THE REAL THING IN OTHER PRECIOUS METALS FUTURES MARKETS SILVER FOR DECEMBER DELIVERY FELL 42 CENTS TO 453 AN OUNCE ON THE COMEX MIMICKING THE SOFTER TONE FOR GOLD ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR OCTOBER DELIVERY CLOSED AT 38530 AN OUNCE OFF 90 CENTS THE ONE GAINER FOR THE DAY WAS PALLADIUM WHICH SETTLED IN LONDON AT ITS HIGHEST FIX IN 39 MONTHS AT 13215 AN OUNCE IN NEW YORK IT SETTLED AT ITS HIGHEST LEVELS SINCE FEBRUARY 1990 AT 13130 UP 180 FOR THE SEPTEMBER CONTRACT THE PALLADIUM MARKET IS BEING SUPPORTED BY GROWING CONCERN ABOUT TIGHTNESS IN THE CASH MARKET WHICH TRADERS SAY IS MAINLY THE RESULT OF RESURGENT JAPANESE DEMAND AND DETERIORATING SUPPLY FROM RUSSIA NINA LIPTON RESEARCH MANAGER OF PLATINUM GUILD INTERNATIONAL A TRADE GROUP SAID THE CRITICAL ISSUE IS RUSSIAN SUPPLY THE RUSSIANS DON'T SEEM TO HAVE MUCH LEFT OF THEIR PALLADIUM RESERVES AND WHAT'S HAPPENING IN PALLADIUM MAY BE AN EARLY INDICATOR FOR THE OVERALL PLATINUMGROUP METALS MARKET ADDED PHILLIP GOTTHELF PRESIDENT OF EQUIDEX A COMMODITY CONSULTING FIRM AS IMPORTANT FOR PALLADIUM IS THE FACT THAT IT'S GAINING RELATIVE PRICE PARITY WITH PLATINUM BOTH OF WHICH ARE KEY COMPONENTS OF CATALYTIC CONVERTERS ALONG WITH RHODIUM NEW AUTO EMISSION REQUIREMENTS ARE GOING TO FAVOR PALLADIUM AMONG THE THREE BECAUSE PALLADIUM REDUCES HYDROCARBON EMISSIONS MORE EFFECTIVELY THAT'S WHY WE'RE STARTING TO SEE INVENTORY ACCUMULATIONS FOR THE METAL IN OTHER COMMODITIES MARKETS ENERGY MARKET PARTICIPANTS DISMISSED THE WEEKEND'S US MISSILE ATTACK ON IRAQ AS UNLIKELY TO HAVE AN IMPACT ON WORLD CRUDE OIL FUNDAMENTALS FUTURES CONTRACTS FOR OIL TO BE DELIVERED IN AUGUST SETTLED AT 1890 UP SIX CENTS A BARREL FROM LAST FRIDAY TRADING WAS LIGHT MARKET REACTION TO THE RENEWED MIDDLE EAST TENSIONS RANGED FROM MILDLY BULLISH IN EARLY TRADING WHEN CONTRACTS SOLD FOR AS MUCH AS 1902 TO A LACK OF INTEREST AS YESTERDAY'S SESSION TICKED BY SOME TRADERS EXPRESSED SURPRISE THAT THE MARKET DIDN'T REACT WITH AT LEAST A SHORTTERM RALLY INSTEAD ANALYSTS AGREED THAT IRAQ DOESN'T CURRENTLY SELL OIL ON THE INTERNATIONAL MARKET BECAUSE OF UNITED NATIONS SANCTIONS AND THE MISSILE ATTACK MERELY REINFORCED TRADERS' SENTIMENTS THAT THE EMBATTLED NATION WON'T BE ALLOWED TO START DOING SO ANY TIME SOON GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES ROSE ON CONTINUING CONCERNS ABOUT WET WEATHER THAT HAS HAMPERED PLANTING OF THE SOYBEAN CROP DRENCHING RAINS HAVE MUDDIED FIELDS IN MANY AREAS OF IOWA AND OTHER PLAINS STATES NOW WELL PAST OPTIMAL PLANTING DATES SOME FARMERS ARE OPTING NOT TO PLANT THEIR LATE SOYBEAN CROPS AT ALL THE LATE AND ABORTED PLANTINGS WILL REDUCE THE PERACRE YIELD OF THIS YEAR'S CROP ANALYSTS SAY THE ULTIMATE LOSS OF YIELD DEPENDS ON THE WEATHER DURING THE REST OF THE SUMMER HOT DRY WEATHER IN JULY AND AUGUST COULD DEVASTATE THE SOYBEAN PLANTS WHOSE ROOT STRUCTURES ARE SAID TO BE SHALLOW BECAUSE OF COLD WET CONDITIONS DURING PLANTING AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR JULY DELIVERY ROSE 1 1/4 CENTS TO 621 A BUSHEL THE NOVEMBER CONTRACT WAS UP ONE CENT TO 62425 A BUSHEL 9306290006 930629 CORNING OFFERS 368 MILLION FOR DAMON AFTER NATIONAL HEALTH LABS SETS PACT BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL CORNING INC IN A MOVE TO PROTECT ITS POSITION AS THE NATION'S NO 2 LAB SERVICES CONCERN OFFERED TO BUY DAMON CORP FOR 23 A SHARE OR 368 MILLION JUST DAYS AFTER DAMON AGREED TO BE ACQUIRED BY NATIONAL HEALTH LABORATORIES INC FOR 16 A SHARE SHARES OF DAMON NEEDHAM HEIGHTS MASS ROCKETED 35 ON THE NEWS TO 22625 UP 5875 IN TRADING ON THE NEW YORK STOCK EXCHANGE SHARES OF CORNING A SPECIALTY MATERIALS COMMUNICATIONS LABORATORY SERVICES AND HOUSEHOLD PRODUCTS CONCERN SLIPPED 125 CENTS TO 3475 ON THE BIG BOARD NATIONAL HEALTH FELL 25 CENTS TO 18125 ON THE NEW YORK STOCK EXCHANGE DAMON SAID IT IS CONSIDERING CORNING'S BID AND WILL RESPOND PROMPTLY BUT IT DECLINED TO ELABORATE NATIONAL HEALTH WHICH DISCLOSED LAST MONDAY THAT IT HAD SIGNED AN AGREEMENT TO BUY DAMON FOR 16 A SHARE SAID IT IS EVALUATING OUR OPTIONS IN LIGHT OF THE CORNING BID IF DAMON CANCELS ITS AGREEMENT WITH NATIONAL HEALTH IT MUST PAY NATIONAL HEALTH AN 18 MILLION TERMINATION FEE NEW YORK INVESTOR RONALD O PERELMAN OWNS A 22 STAKE IN NATIONAL HEALTH LABS BY ACQUIRING DAMON CORNING POTENTIALLY COULD TOPPLE SMITHKLINE BEECHAM PLC OF ENGLAND FROM ITS SPOT AS THE NO 1 PROVIDER OF LAB SERVICES WITH DAMON CORNING'S CLINICAL LAB SERVICES REVENUE WOULD INCREASE FROM AN ESTIMATED 855 MILLION TO 12 BILLION ABOUT THE SAME AS SMITHKLINE'S REVENUE FOR THAT BUSINESS DAMON'S LARGEST INSTITUTIONAL INVESTOR THE STATE OF WISCONSIN INVESTMENT BOARD HAD OBJECTED TO THE NATIONAL HEALTH OFFER AS TOO LOW BUT IT SAID IT WAS PLEASED WITH THE CORNING OFFER WE'RE VERY PLEASED THAT SOMEONE WHO HAD A BETTER VALUATION OF THE COMPANY STEPPED IN AND MADE AN OFFER FOR IT SAID JOHN NELSON INVESTMENT DIRECTOR OF GROWTH EQUITIES AT THE INVESTMENT BOARD A BIDDING WAR SEEMS UNLIKELY ANALYSTS SAID BECAUSE THE CORNING OFFER IS SO FAR ABOVE THE NATIONAL HEALTH OFFER ACCORDING TO PEOPLE CLOSE TO DAMON CORNING WAS DAMON'S ONLY OTHER BIDDER THE TWO COMPANIES HAVE BEEN IN TALKS FOR MONTHS ACCORDING TO CORNING ALTHOUGH SOME CRITICIZED CORNING'S OFFER AS RICH SHEARSON LEHMAN ANALYST KIMBERLY RETRIEVI SAID THE DEAL COULD BE ATTRACTIVE FOR CORNING GIVEN THE MONEY IT COULD SAVE BY CONSOLIDATING ITS METPATH LABORATORIES WITH DAMON'S LABORATORIES MS RETRIEVI ESTIMATED THAT CORNING BASED IN CORNING NY HAS ABOUT 35 METPATH LABS COMPARED WITH 13 LABS FOR DAMON DAMON'S LABS ARE IN 11 REGIONS AND IT COMPETES WITH MEDPATH LABS IN 10 OF THOSE REGIONS BOSTON PHILADELPHIA NEW YORK PITTSBURGH CHICAGO MICHIGAN ATLANTA FLORIDA DALLAS AND PHOENIX DAMON'S 11TH REGION IS LOOSELY CALLED CALIFORNIA AND INCLUDES ONE LAB EACH IN SAN FRANCISCO LOS ANGELES AND MEXICO CITY HOWEVER ANOTHER ANALYST B ALEX HENDERSON SAID THE PROPOSED ACQUISITION COULD REDUCE CORNING'S EARNINGS BY ABOUT FIVE CENTS A SHARE NEXT YEAR IN A PUBLIC LETTER TO DAMON'S BOARD CORNING SAID IT IS PREPARED TO MOVE QUICKLY WITH AN ALLCASH OR PARTCASH PARTSTOCK OFFER THAT IS SIMILAR TO THE OFFER MADE BY NATIONAL HEALTH CORNING NOTED THAT EXTENSIVE DUE DILIGENCE WON'T BE NECESSARY BECAUSE IT IS INTIMATELY FAMILIAR WITH DAMON AND THE LAB SERVICES INDUSTRY A CORNING SPOKESMAN SAID THE PROPOSED DEAL WOULDN'T BE AFFECTED BY A CURRENT INVESTIGATION OF METPATH BY THE DEPARTMENT OF JUSTICE'S CIVIL DIVISION CORNING RECENTLY DISCLOSED THAT IT IS COOPERATING WITH THE GOVERNMENT'S REQUEST FOR INFORMATION ABOUT THE COMPANY'S SALES AND MARKETING PRACTICES CORNING DECLINED TO ELABORATE ON THE REQUEST INDUSTRY ANALYSTS SPECULATE THAT THE GOVERNMENT IS INVESTIGATING METPATH FOR POSSIBLE IMPROPER MEDICARE BILLING AND OTHER PRACTICES SIMILAR TO THOSE THAT LED TO AN 1114 MILLION FRAUD SETTLEMENT WITH NATIONAL HEALTH LAST DECEMBER NATIONAL HEALTH'S FORMER PRESIDENT AND CHIEF EXECUTIVE OFFICER IS SERVING A THREEMONTH FEDERAL PRISON SENTENCE FOR HIS PART IN THE FRAUDULENT SCHEME RHONDA L RUNDLE CONTRIBUTED TO THIS ARTICLE 9306290005 930629 ROGERS COMPLETES DIVESTITURE ROGERS CONN ROGERS CORP SAID IT COMPLETED THE DIVESTITURE OF ITS ROGERS FLEXIBLE INTERCONNECTIONS DIVISION AND A 50 INTEREST IN A RELATED JOINT VENTURE TO AFFILIATES OF AMPERSAND VENTURES A WELLESLEY MASS VENTURE CAPITAL FIRM ROGERS A MAKER OF POLYMER COMPOSITE MATERIALS AND COMPONENTS SAID IT INTENDS TO FOCUS ON ITS SPECIALTY CHEMICALS BUSINESS AND WILL SUPPLY CIRCUIT MATERIALS TO ITS FORMER DIVISION 9306290004 930629 INTERNATIONAL FERRUZZI GROUP INCREASES SEVERITY OF ITS 1992 LOSS SPECIAL TO THE WALL STREET JOURNAL MILAN THE 1992 LOSSES AT ITALY'S CASHSTRAPPED FERRUZZIMONTEDISON GROUP WERE EVEN LARGER THAN REPORTED AT THE END OF MAY YESTERDAY AT THE COMPANY'S ANNUAL MEETING MONTEDISON SPA THE MAIN OPERATING UNIT OF FERRUZZI FINANZIARIA SPA TOLD STOCKHOLDERS THAT ITS 1992 CONSOLIDATED LOSS TOTALED 1679 TRILLION LIRE 11 BILLION CONSIDERABLY WORSE THAN THE 1244 TRILLION LIRA LOSS IT REPORTED LAST MONTH MONTEDISON WHOSE MANY BUSINESSES INCLUDE AGRICULTURE AND CHEMICALS SAID THE RESTATING OF ITS 1992 ACCOUNTS WAS DUE MOSTLY TO PROVISIONS FOR LOSSES OF 320 BILLION LIRE POSTED BY ITS SWISS HOLDING COMPANY AND AN ANTILLESBASED SUBSIDIARY OUTGOING VICE CHAIRMAN AND MANAGING DIRECTOR CARLO SAMA DIDN'T ELABORATE ON THE NATURE OF THE LOSSES SAYING ONLY THAT INQUIRIES ARE STILL TAKING PLACE AS A RESULT OF MONTEDISON'S LARGER LOSS FERRUZZI SAID IT HAD TO RESTATE ITS OWN 1992 LOSS AS 1667 TRILLION LIRE COMPARED WITH ITS PREVIOUSLY DISCLOSED 1519 TRILLION LIRE SHORTFALL FOR THE YEAR ANALYSTS SAID THE NEWS HAS DESTROYED WHAT LITTLE CREDIBILITY REMAINED WITH MONTEDISON AND FERRUZZI THE FERRUZZI GROUP IS THE OBJECT OF A SWEEPING RESTRUCTURING BY A GROUP OF CREDITOR BANKS CALLED IN EARLIER THIS MONTH AFTER IT MISSED SOME DEBT PAYMENT DEADLINES THE ENTIRE FERRUZZI GROUP HAS ABOUT 20 BILLION IN GROSS DEBT LARGELY ACCUMULATED DURING A LATE 1980S ACQUISITION BINGE THE RESTRUCTURING IS EXPECTED TO INVOLVE ASSET DISPOSALS AND A RESCHEDULING OF BANK DEBTS POSSIBLY THROUGH A PARTIAL DEBTFOREQUITY SWAP AS WELL AS MANAGEMENT CHANGES THIS IS LIKE A SOAP OPERA AND ONE HAS TO ASK WHY DIDN'T THEY REALIZE IT BEFORE SAID ONE MILAN ANALYST WHO ASKED NOT TO BE IDENTIFIED TRADING OF SHARES IN FERRUZZI FINANZIARIA AND MONTEDISON WAS SUSPENDED ON THE MILAN STOCK EXCHANGE YESTERDAY FERRUZZI AND MONTEDISON SHARE PRICES HAVE SHED AROUND HALF THEIR VALUE SINCE THE COMPANY FIRST ANNOUNCED IT WAS IN CRISIS FERRUZZI'S SALVAGE TEAM OF CREDITOR BANKS HAS COME UNDER FIRE FOR CONTINUING TO LEND MONEY TO THE HEAVILY INDEBTED CONGLOMERATE WHICH IS ITALY'S SECOND LARGEST PRIVATESECTOR COMPANY AFTER FIAT SPA THE BANK OF ITALY ALSO HAS BEEN CRITICIZED FOR FAILING TO SOUND THE ALARM BELL ABOUT THE CREDITOR BANKS' OVEREXPOSURE TO A SINGLE GROUP EVEN THE STOCK MARKET WATCHDOG AGENCY CONSOB IS BEING CRITICIZED FOR NOT HAVING LAUNCHED AN INVESTIGATION SOONER INTO THE RAPID INCREASE IN FERRUZZIMONTEDISON'S DEBTS AT THE ANNUAL MEETING MONTEDISON FORMALLY ANNOUNCED THAT ARTURO FERRUZZI RESIGNED AS CHAIRMAN AND SHAREHOLDERS APPOINTED A MUCH DIMINISHED FIVEMEMBER BOARD OF DIRECTORS DOWN FROM 22 MEMBERS PREVIOUSLY THE NEW BOARD WILL CONSIST OF ENRICO BONDI GUIDO ROSSI ALESSANDRA FERRUZZI ARIBERTO MIGNOLI AND ENRICO PIZZI AFTER THE MEETING IT WAS ANNOUNCED THAT MR ROSSI A CORPORATE LAWYER WAS NAMED CHAIRMAN SUCCEEDING MR FERRUZZI MR BONDI AN EXECUTIVE OF FIAT WAS NAMED TO SUCCEED MR SAMA AS MANAGING DIRECTOR OF THE OTHER BOARD MEMBERS ALESSANDRA FERRUZZI IS THE YOUNGEST DAUGHTER OF THE GROUP'S FOUNDER THE LATE SERAFINO FERRUZZI SHE IS ALSO MR SAMA'S WIFE MR MIGNOLI IS THE FERRUZZI FAMILY'S LEGAL COUNSEL MR PIZZI IS THE SECRETARY OF THE OUTGOING BOARD OF DIRECTORS IN ADDITION MONTEDISON ANNOUNCED THAT ITALO TRAPPASO RESIGNED AS CHAIRMAN OF MONTECATTINI SPA MONTEDISON'S CHEMICAL AND ENERGY UNIT THE NEW BOARD ISSUED A STATEMENT EXPRESSING A STRONG MESSAGE OF REASSURANCE TO THE 42000 EMPLOYEES AND THE OVER 100000 SHAREHOLDERS OF THE GROUP AS WELL AS TO THE ITALIAN AND INTERNATIONAL FINANCIAL COMMUNITIES 9306290003 930629 WHO'S NEWS ALLIEDSIGNAL INC ALLIEDSIGNAL INC MORRIS TOWNSHIP NJ PAUL R SCHINDLER 51 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF INTERNATIONAL OPERATIONS SUCCEEDING JOHN W DAY 60 WHO WILL RETIRE TOMORROW MR SCHINDLER HAD BEEN CHAIRMAN OF THE ASIA/PACIFIC UNIT OF IMPERIAL CHEMICAL INDUSTRIES PLC ALLIEDSIGNAL IS MAJOR TECHNOLOGY CONCERN WITH INTERESTS IN AEROSPACE AUTOMOTIVE PRODUCTS AND ENGINEERED MATERIALS THE POSITION WHICH WILL BE BASED IN HONG KONG IS EFFECTIVE AUG 1 ADDITIONALLY JAMES GRAHAM 46 WAS NAMED PRESIDENT OF CONVERDYN A NEW PARTNERSHIP BETWEEN GENERAL ATOMICS ENERGY SERVICES LIMITED PARTNERSHIP AND ALLIEDSIGNAL ENERGY SERVICES INC A UNIT OF ALLIEDSIGNAL INC MR GRAHAM WILL CONTINUE AS VICE PRESIDENT OF GENERAL ATOMICS 9306290002 930629 INTERNATIONAL US JAPAN END TRADE PARLEY IN STALEMATE CLINTON TEAM AIMED TO SET BENCHMARKS' TO JUDGE REDUCTION OF SURPLUS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AN AMBITIOUS ATTEMPT TO FORGE A NEW FRAMEWORK FOR NEGOTIATING USJAPANESE TRADE DISPUTES ENDED IN A STALEMATE AFTER TWO DAYS OF DISCUSSIONS THE APPARENT IMPASSE IN THE TALKS WITH NEGOTIATORS UNABLE EVEN TO SET A SCHEDULE FOR THE NEXT ROUND OF DISCUSSIONS MAKES IT UNLIKELY THAT THE US AND JAPAN WILL REACH AGREEMENT BEFORE THEIR SELFIMPOSED DEADLINE OF JULY 7 WHEN THE HEADS OF THE GROUP OF SEVEN INDUSTRIALIZED POWERS CONVENE IN TOKYO SOME SORT OF FACESAVING MEASURE STILL COULD BE REACHED BUT NEGOTIATORS IN TOKYO LAST NIGHT APPEARED PESSIMISTIC THE IMPASSE ALSO UNDERSCORES THE DIFFERENCES SEPARATING THE TWO SIDES AND RAISES THE POSSIBILITY THAT THE US WILL BRING ADDITIONAL PRESSURE TO BEAR IN AN ATTEMPT TO REACH THE AGREEMENT IT WANTS WE PROPOSED THIS FRAMEWORK AS A WAY OF MANAGING OUR BILATERAL ECONOMIC RELATIONSHIP WITH JAPAN SAID ONE US OFFICIAL THAT RELATIONSHIP AS IT STANDS NOW IS BADLY CORRODED BY JAPAN'S HUGE TRADE SURPLUS AND CLOSED MARKETS THE OFFICIAL CONTINUED IT'S UP TO JAPAN WHERE IT WANTS TO SEE THIS ECONOMIC RELATIONSHIP GO OTHER US OFFICIALS HELD OUT THE HOPE THAT INTERNATIONAL DISAPPROVAL WOULD BRING TOKYO AROUND THE OVERALL TRADE IMBALANCE IS TO THE POINT WHERE THE ASYMMETRY IS SO EVIDENT IT WILL BE DIFFICULT FOR JAPAN TO SUSTAIN SAID ONE THE FACT THAT JAPAN HAS THE LOWEST PERCENTAGE OF MANUFACTURED IMPORTS COMPARED WITH OTHER COUNTRIES IS A GLOBAL PROBLEM SAID ANOTHER IN THE TALKS THE CLINTON ADMINISTRATION'S FIRST ATTEMPT TO STAKE OUT A COHERENT TRADE POLICY TOWARD JAPAN US NEGOTIATORS ASKED JAPAN TO TAKE MEASURES AIMED AT CUTTING ITS CURRENTACCOUNT SURPLUS BY ABOUT HALF AND INCREASING ITS IMPORTS OF MANUFACTURED GOODS BY A THIRD OVER THE NEXT THREE YEARS IN RETURN THE US PROMISED NOT TO RESTRICT ACCESS TO ITS MARKET AND TO CUT THE US FEDERAL DEFICIT IN HALF OVER THE SAME TIME PERIOD THE CURRENT ACCOUNT IS A BROAD MEASURE OF A COUNTRY'S TRADE IN BOTH GOODS AND SERVICES BOTH SIDES REFUSED TO DESCRIBE THEIR DISCUSSIONS BUT OFFICIALS LEFT LITTLE DOUBT ABOUT THE PRIMARY DISAGREEMENT A US PROPOSAL TO ESTABLISH STATISTICAL BENCHMARKS TO MEASURE JAPAN'S PROGRESS IN REDUCING ITS TRADE SURPLUS JAPANESE OFFICIALS HAVE REPEATEDLY DENOUNCED SUCH NUMERICAL MEASURES AS AN ATTEMPT BY THE US TO MANAGE TRADE JAPAN CAN'T BE THAT FLEXIBLE ON FUNDAMENTAL ISSUES RELATED TO BASIC PRINCIPLES ONE JAPANESE OFFICIAL SAID IN COMMENTS TO REPORTERS US OFFICIALS DEFENDED THEIR INSISTENCE ON NUMERICAL MEASURES MUCH OF THE DEBATE OVER MEASURES IS A FALSE DEBATE SAID ONE WHAT WE'RE TRYING TO ACHIEVE HERE IS PROGRESS AND YOU CAN'T KNOW IF YOU'RE MAKING PROGRESS OR NOT WITHOUT MEASURING IT 9306290001 930629 WHAT'S NEWS BUSINESS AND FINANCE STOCKS RALLIED AS LONGTERM INTEREST RATES HIT THEIR LOWEST LEVEL IN 16 YEARS THE DOW JONES INDUSTRIAL AVERAGE SURGED 3931 POINTS TO 353020 THE PRICE OF THE TREASURY'S BENCHMARK 30YEAR BOND GAINED NEARLY 1/2 POINT WHILE ITS YIELD FELL TO 667 ITS LOWEST LEVEL SINCE THE TREASURY BEGAN REGULAR AUCTIONS OF THE BOND IN 1977 THE SUPREME COURT REJECTED A STRICT STANDARD THAT HAS BEEN WIDELY USED BY FEDERAL JUDGES TO KEEP CONTROVERSIAL SCIENTIFIC EVIDENCE OUT OF PERSONALINJURY LAWSUITS AND OTHER TRIALS THE RULING WAS A DEFEAT FOR BUSINESS WHICH ARGUES IT IS SUBJECTED TO SUITS BASED ON DUBIOUS SCIENTIFIC EVIDENCE THE HIGH COURT CLEARED THE WAY FOR A SUIT ACCUSING FOUR BIG US INSURERS OF COLLUDING WITH BRITISH COMPANIES TO LIMIT SOME TYPES OF CORPORATE LIABILITY COVERAGE AND ELIMINATE OTHERS BOEING MOVED TO DEFEND ITS DOMINANCE IN SMALL JETLINERS OFFERING AIRLINES A SERIES OF UPGRADED 737 AIRCRAFT THAT WILL COST 1 BILLION TO DEVELOP THE DECISION IS AIMED AT FENDING OFF INROADS IN THAT MARKET BY EUROPE'S AIRBUS INDUSTRIE AND TO ENCOURAGE AIRLINES TO RETIRE THEIR OLDEST JETS ALCOA PLANS TO CUT A QUARTER OF ITS US CAPACITY AND LAY OFF 750 WORKERS OR ABOUT 2 OF ITS DOMESTIC WORK FORCE CITING A WORLD OVERSUPPLY OF ALUMINUM THAT SHOWS NO SIGNS OF EASING CORNING OFFERED TO BUY DAMON FOR 23 A SHARE OR 368 MILLION JUST DAYS AFTER DAMON AGREED TO BE ACQUIRED BY NATIONAL HEALTH LABS FOR 16 A SHARE CORNING'S MOVE AIMS TO PROTECT ITS POSITION AS THE NATION'S NO 2 LAB SERVICES CONCERN DAMON'S SHARE PRICE SHOT UP 5875 OR 35 TO 22625 ON THE NEWS USJAPANESE TALKS TO FORGE A FRAMEWORK FOR NEGOTIATING TRADE DISPUTES ENDED IN A STALEMATE THE COLLAPSE MAKES IT UNLIKELY THE TWO SIDES WILL REACH A PACT BEFORE LEADERS OF THE GROUP OF SEVEN CONVENE IN TOKYO OFFICIALS WERE UNABLE EVEN TO SET A DATE FOR THE NEXT ROUND OF USJAPAN TALKS APPLE COMPUTER IS CONSIDERING USING INTEL 486 MICROPROCESSORS IN SOME MACINTOSH MODELS ACCORDING TO PEOPLE FAMILIAR WITH APPLE'S PLANS ELITE LAW FIRMS WERE HIT HARD BY THE RECESSION AND AN ECONOMIC RECOVERY FOR ALL LARGE FIRMS MAY BE A LONG TIME COMING A SURVEY INDICATES ITT AGREED TO BUY THE DESERT INN HOTELCASINO IN LAS VEGAS FROM BILLIONAIRE INVESTOR KIRK KERKORIAN FOR ABOUT 160 MILLION AN EXAMPLE OF ANOTHER MAJOR CORPORATE PLAYER ENTERING THE FASTGROWING CASINO INDUSTRY NOVELL UNVEILED SOFTWARE THAT COULD SIMPLIFY WRITING APPLICATIONS FOR COMPUTER SYSTEMS THAT AREN'T COMPATIBLE MONTEDISON'S LOSSES WERE 11 BILLION IN 1992 MUCH WORSE THAN THE ITALIAN AGRICULTURE AND CHEMICAL UNIT OF FERRUZZI REPORTED LAST MONTH BLUE CROSS AND BLUE SHIELD PLANS COULD DROP TO AS FEW AS 40 FROM 70 AS A RESULT OF THE EXPECTED OVERHAUL OF THE HEALTHCARE SYSTEM SAID THE HEAD OF THE ORGANIZATIONS' ASSOCIATION THE REFORM WOULD ALSO FORCE THE PLANS TO COMPETE WITH FORPROFIT INSURERS WITHOUT TAX BREAKS OR REGULATORY BENEFITS DELL COMPUTER CUT ITS PRICES ON ITS MAIN LINE OF PERSONAL COMPUTERS BY 9 TO 23 IN JAPAN SETTING THE STAGE FOR WHAT SOME ANALYSTS CALLED A SECOND ROUND OF THE PC PRICE WAR IN JAPAN ITS STOCK FELL 125 OR 59 TO 19875 INCO AGREED TO SELL ITS 62 INTEREST IN ITS TVX GOLD TO A GROUP FOR 2894 MILLION AFTER TAXES IN A MOVE THAT WILL ALLOW THE CASHSTRAPPED NICKEL AND COPPER PRODUCER TO PARE ITS DEBT BONDS LEHMAN BROTHERS TREASURY INDEX 528039 UP 2416 COMMODITIES OIL 1890 A BARREL UP SIX CENTS DOW JONES FUTURES INDEX 12024 OFF 003 SPOT INDEX 12053 OFF 010 DOLLAR 1062500 UP 005 16960 OFF 00095 9306290041 930527 PRICING HEALTH CARE CLINTON IS RIGHT ON TORT PROBLEM WRONG ON SOLUTION BY DAN QUAYLE IN AUGUST OF 1991 I RAISED A CONCERN THAT GENERATED CONTROVERSY AND CRITICISM I ADDRESSED THE AMERICAN BAR ASSOCIATION AND SAID OUR LEGAL SYSTEM IS TOO COSTLY TAKES TOO LONG TO REACH DECISIONS AND NEEDS SERIOUS REFORM MOST LAWYERS AGREE WITH ME BUT POWERFUL INTEREST GROUPS HAVE STOPPED LEGAL REFORM PROPOSALS IN THE PAST IT LOOKS LIKE LEGAL REFORM IS GOING TO GET HELP FROM AN UNEXPECTED YET WELCOME PLACE THE CLINTON ADMINISTRATION FEWER THAN 8 OF THE LAWSUITS FILED MAKE IT TO TRIAL PARTLY BECAUSE THE AVERAGE CASE TAKES 14 MONTHS TO COMPLETE WE CAN AND SHOULD MAKE OUR LEGAL SYSTEM MORE EFFICIENT HELP THE CONSUMER AND INCREASE PRODUCTIVITY LAST FRIDAY NEWS REPORTS INDICATED THAT THE CLINTON ADMINISTRATION WAS SERIOUSLY CONSIDERING MEDICAL MALPRACTICE REFORM ONE ADMINISTRATION OFFICIAL DECRIED THE CURRENT SYSTEM AS A LOTTERY THAT NOW TAKES FIVE OR 10 YEARS NOW THAT THE CLINTON TEAM RECOGNIZES A PROBLEM LET'S SEE IF ITS SOLUTION WORKS MEDICAL MALPRACTICE SUITS HAVE CERTAINLY WREAKED HAVOC IN THE HEALTHCARE DELIVERY SYSTEM A CONSERVATIVE ESTIMATE FROM A 1993 STUDY PREDICTS SAVINGS OF 36 BILLION OVER FIVE YEARS BY LIMITING DEFENSIVE MEDICINE A SIDE EFFECT OF THE LITIGATION EXPLOSION ACCORDING TO A 1992 SURVEY 80 OF ALL BOARDCERTIFIED OBSTETRICIANS AND GYNECOLOGISTS HAVE BEEN SUED IN RECENT YEARS 123 HAVE STOPPED PRACTICING OBSTETRICS AND ONE QUARTER HAVE DECREASED THE AMOUNT OF HIGHRISK CARE THEY OFFER IN THE NEW PLAN CONCEIVED BY THE ADMINISTRATION INSTEAD OF SUING THE DOCTOR A PATIENT WOULD BRING HIS LEGAL CLAIM AGAINST THE ORGANIZATION THAT CONTRACTS WITH THE PHYSICIAN OR THE HOSPITAL THE ORGANIZATION CALLED THE ACCOUNTABLE HEALTH PLAN AHP WOULD PRESCRIBE STANDARD PRACTICE GUIDELINES THAT WHEN FOLLOWED WOULD PRESUMABLY SHIELD BOTH THE DOCTOR AND THE PLAN FROM LIABILITY THIS IS CALLED ENTERPRISE LIABILITY OF COURSE PROMULGATING AND POLICING THE GUIDELINES WOULD BE NO MEAN FEAT WHO WOULD CERTIFY THE GUIDELINES AS APPROPRIATE IS THIS REAL REFORM OR IS THIS ONLY OFFERING A POLITICAL ANSWER TO A SENSITIVE PROBLEM REAL REFORM WILL REQUIRE TOUGHER CHOICES THAN THOSE RECOMMENDED SO FAR EVERYONE KNOWS THAT IT TAKES TOO LONG AND COSTS TOO MUCH TO RESOLVE DISPUTES IN OUR LEGAL SYSTEM FOR AN INJURED PERSON THIS IS NOTHING SHORT OF A TRAGEDY SOME OF THE ADMINISTRATION'S IDEAS EARLY SETTLEMENT THROUGH INFORMAL HEARINGS OR ALTERNATIVES TO LITIGATION HAVE LONG BEEN PROVED EFFECTIVE WHEN THE PARTIES CAN VOLUNTARILY ELECT THE ALTERNATIVE APPROACH BUT SETTLEMENT DISCUSSIONS WILL NOT SOLVE THE MEDICAL MALPRACTICE PROBLEM THE KEY FAILING OF THE CLINTON PLAN IS THAT IT IDENTIFIES THE WRONG TARGET THE REAL PROBLEM IN THE SYSTEM TODAY ISN'T DOCTORS IT IS AN EXPENSIVE INEFFICIENT LEGAL SYSTEM WE HAVE BECOME THE MOST LITIGIOUS SOCIETY IN THE WORLD WITH 18 MILLION NEW LAWSUITS ENTERING THE SYSTEM EVERY YEAR MANY OF THOSE CASES ARE BROUGHT AGAINST MEDICAL PROFESSIONALS AND IT'S BEEN ESTIMATED THAT TWOTHIRDS OF MEDICAL MALPRACTICE CLAIMS ARE WITHOUT MERIT MERITORIOUS OR NOT HOWEVER EVERY CLAIM MUST BE DEFENDED ENTERPRISE LIABILITY WOULD NOT REDUCE THESE NUMBERS BECAUSE THE LAWYER'S LOTTERY IS STILL INTACT IT WOULD ONLY SHIFT THE COSTS FROM DOCTORS TO AHPS IN THE END OF COURSE THOSE COSTS STAY HIGH COURTS STAY CLOGGED DOCTORS PRACTICE DEFENSIVE MEDICINE AND PATIENTS PAY MORE MY GOAL IS TO MAKE OUR LEGAL SYSTEM MORE EFFICIENT LET THE MERITORIOUS CASES BE HEARD AND THE NUISANCE CASES BE SUMMARILY DISMISSED THERE IS A BETTER WAY THE ONLY REMEDY IS FOR AMERICA TO QUIT TREATING ITS LEGAL SYSTEM AS A LOTTERY COST SHIFTING ISN'T THE ANSWER COST REDUCTION IS UNLESS A PROPOSAL DELIVERS JUST COMPENSATION TO INJURED PARTIES MORE QUICKLY AND AT LESS COST IT ISN'T A REFORM ANY COMPREHENSIVE HEALTHCARE REFORM WILL REQUIRE AN OVERHAUL OF MEDICAL MALPRACTICE HERE ARE SOME OF THE ELEMENTS OF SUCH A PROGRAM THAT WOULD HELP BOTH THE PATIENT AND THE PHYSICIAN PAY INJURED PATIENTS MORE QUICKLY THROUGH VOLUNTARY ALTERNATIVES TO TRIAL COMPENSATE PATIENTS FULLY FOR THEIR ACTUAL HARM WHILE LIMITING AWARDS FOR NONECONOMIC DAMAGES ENSURE THAT GREATER PORTIONS OF THE AWARDS GO TO THE PATIENT BY HAVING THE COURTS CONSIDER A SLIDING SCALE FOR ATTORNEYS' FEES ALLOW AWARDS TO BE PAID IN INSTALLMENTS REQUIRE EXPERT WITNESSES TO HAVE PRACTICAL EXPERIENCE IN THE AREA OF THEIR TESTIMONY ELIMINATE JOINT AND SEVERAL LIABILITY SO THAT RESPONSIBILITY IS APPORTIONED BASED ON FAULT NOT ON WHO HAS THE DEEPEST POCKET REFORM THE COLLATERAL SOURCE RULE TO PROHIBIT DOUBLE RECOVERY FROM FOR EXAMPLE BOTH WORKERS' COMPENSATION AND A MEDICAL PROVIDER THESE AND OTHER REFORMS IN THE LEGAL SYSTEM WOULD HELP REDUCE HEALTHCARE COSTS THIS OF COURSE BEGS THE LARGER QUESTION WHY LIMIT NEEDED LEGAL REFORM TO THE MEDICAL ARENA ALL CONSUMERS AND COMPANIES ARE FUNDING THE LITIGATION LOTTERY AMERICANS ARE ENCOURAGED TO PLAY THIS GAME OF CHANCE BY THE PLAINTIFFS' BAR PERHAPS THE ONLY GROUP THAT BENEFITS FROM EXCESS LITIGATION SINCE THE CLINTON ADMINISTRATION HAS COME AROUND TO ADMITTING THERE IS A PROBLEM THERE STILL IS A CHANCE THAT IT WILL OFFER WORKABLE SOLUTIONS IF THE ADMINISTRATION IS SERIOUS IT WILL ADDRESS THE WHOLE LEGAL SYSTEM AND INSTITUTE BOTH PROCEDURAL IMPROVEMENTS AND SUBSTANTIVE TORT REFORM THERE IS STILL TIME TO BRING THE LEGAL SYSTEM BACK FROM THE BRINK BUT IT WILL TAKE MUCH MORE THAN THE CLINTONS' ENTERPRISELIABILITY PLACEBO MR QUAYLE 44TH VICE PRESIDENT OF THE US IS NOW CHAIRMAN OF THE COMPETITIVENESS CENTER AT THE HUDSON INSTITUTE SEE RELATED LETTER LETTERS TO THE EDITOR MALPRACTICE LITIGATION AND HEALTH CARE COSTS WSJ JUNE 29 1993 9305270074 YY06 MM06 9306280174 930628 TECHNOLOGY EDS CHAIRMAN SOLD STOCK LAST MONTH EVEN AS ITS PARENT WAS SEEKING PARTNERS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS LESTER M ALBERTHAL JR CHAIRMAN AND CHIEF EXECUTIVE OF ELECTRONIC DATA SYSTEMS CORP LAST MONTH SOLD 40 OF HIS GENERAL MOTORS CORP STOCK LINKED TO THE COMPUTER SERVICES OPERATION EVEN AS THE AUTO MAKER WAS TRYING TO GET TELECOMMUNICATIONS COMPANIES TO BUY A STAKE IN THE UNIT DOCUMENTS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION SHOW THAT MR ALBERTHAL SOLD 80000 SHARES OF GM CLASS E STOCK ON MAY 25 FOR ABOUT 25 MILLION THE SHARES SOLD AT BETWEEN 3188 AND 32 A SHARE ARE TRADED ON THE NEW YORK STOCK EXCHANGE AND REPRESENT A DIVIDEND INTEREST IN EDS'S FUTURE EARNINGS THE SALE WHICH LEAVES MR ALBERTHAL WITH 120000 CLASS E SHARES CAME FOUR DAYS AFTER GM'S ANNUAL MEETING IN OKLAHOMA CITY WHERE THE AUTO MAKER SAID IT IS IN TALKS WITH SEVERAL POSSIBLE TELECOMMUNICATIONS PARTNERS FOR EDS AND MIGHT EVEN CONSIDER SELLING AN OWNERSHIP STAKE IN THE DALLASBASED UNIT MR ALBERTHAL THROUGH A SPOKESMAN SAID HIS STOCK SALE WAS FOR PERSONAL FINANCIAL REASONS AND SHOULDN'T BE INTERPRETED AS A SIGN OF DOUBT ABOUT THE COMPANY'S EARNINGS POTENTIAL I WOULDN'T READ ANYTHING INTO IT AT ALL THE SPOKESMAN SAID THIS IS NOT RELATED TO ANYTHING HAVING TO DO WITH EDS'S PERFORMANCE IN THE FUTURE THE SPOKESMAN SAID EDS EXECUTIVES HAD BEEN RELUCTANT TO TRADE THEIR COMPANY STOCK WHILE NEGOTIATIONS FOR A POSSIBLE ALLIANCE WITH BRITISH TELECOMMUNICATIONS PLC WERE STILL IN THE WORKS THOUGH THIS NEWSPAPER AND OTHERS SAID IN EARLY MAY THAT THE TALKS HAD BEEN CALLED OFF THE FIRST OFFICIAL WORD FROM GM DIDN'T COME UNTIL THE ANNUAL MEETING ON FRIDAY MAY 21 MR ALBERTHAL SOLD HIS SHARES THE FOLLOWING TUESDAY EDS'S SEARCH FOR AN ALLIANCE HAS BEEN WIDELY WATCHED ON WALL STREET WHERE SOME HAVE BEGUN TO GRUMBLE THAT THE COMPANY ISN'T GROWING FAST ENOUGH ANALYSTS NOTE THAT EDS BUSINESS FOR CUSTOMERS OTHER THAN GM GREW AN ANEMIC 4 IN THE FIRST QUARTER SHARPLY BELOW THE COMPANY'S INTERNAL TARGET OF 20 THEY ALSO WORRY THAT EDS IS FALLING BEHIND IN THE COMPUTER INDUSTRY'S TECHNOLOGICAL SWITCH FROM MAINFRAME COMPUTERS TO SMALLER MACHINES LEAVING THE COMPANY VULNERABLE TO A GROWING PACK OF COMPETITORS LED BY INTERNATIONAL BUSINESS MACHINES CORP AND ANDERSEN CONSULTING THE CLASS E SHARES HAVE DRIFTED STEADILY DOWNWARD FROM 36 A SHARE IN JANUARY WHEN WORD FIRST SURFACED THAT GM WAS DISCUSSING A POSSIBLE SALE OF A MINORITY STAKE TO BRITISH TELECOM WITH THAT DEAL NOW OFF AND WITH NONGM BUSINESS DRIFTING EDS SHARES HAVE RECENTLY DIPPED BELOW 30 A SHARE ON FRIDAY THE ISSUE CLOSED AT 3075 UNCHANGED THE COMPANY REALLY HASN'T DONE MUCH IN ABOUT A YEAR SAID STEPHEN T MCCLELLAN A TECHNOLOGY ANALYST AT MERRILL LYNCH IN SAN FRANCISCO SEARCH FOR A PARTNER ANALYSTS SAY THAT EVEN IF GM IS ABLE TO FIND A PARTNER FOR EDS THE COMPANY IS TALKING WITH AMONG OTHERS AMERICAN TELEPHONE & TELEGRAPH CO THERE'S NO GUARANTEE OF AN IMMEDIATE EARNINGS BOOST OR A TURNAROUND IN THE PRICE OF THE STOCK ANALYSTS POINT OUT THAT CLASS E SHARES REPRESENT ONLY A STAKE IN FUTURE DIVIDENDS AND NOT AN OWNERSHIP SHARE IN THE COMPANY THEY NOTE HOWEVER THAT EDS IS HARDLY IN THE DUMPS MOST OBSERVERS EXPECT THE COMPANY WHICH REPORTED 82 BILLION IN SALES LAST YEAR TO GENERATE A 15 GAIN IN NET PROFIT THIS YEAR TO MORE THAN 730 MILLION AND IN THE PAST YEAR EDS HAS WON SEVERAL MAJOR CONTRACTS INCLUDING A 500 MILLION 10YEAR PACT WITH BETHLEHEM STEEL CORP AND A 1 BILLION 10YEAR DEAL WITH KOOPERATIVA FORBUNDET A SWEDISH CONGLOMERATE BUT ARE THEY GENERATING ENOUGH CONTRACT ACTIVITY ANALYSTS WONDER AND ARE THEY PREPARED FOR A FULLBLOWN INFORMATIONSERVICES BATTLE WITH IBM A LOT OF INSTITUTIONAL INVESTORS I TALK TO ARE CONCERNED ABOUT WHAT THE LONGTERM GROWTH RATE IS SAID DAVID READERMAN AN ANALYST WITH LEHMAN BROTHERS IN SAN FRANCISCO THE CRITICAL ISSUE IS WILL THE NONGM BUSINESS ACCELERATE HERE 9306280173 930614 BOARD OF CONTRIBUTORS A CONSERVATIVE WELFARE STATE BY IRVING KRISTOL I HAD IT COMING IN MY LAST ARTICLE IN THIS NEWSPAPER I CHALLENGED CONSERVATIVES IN GENERAL AND THE REPUBLICAN PARTY IN PARTICULAR TO COME UP WITH THEIR IDEAS FOR A REFORMED WELFARE STATE INEVITABLY MY CHALLENGE REDOUNDED UPON ME WELL MY FRIENDS ASSOCIATES AND MANY CORRESPONDENTS REPLIED WHERE ARE YOUR IDEAS STOP SERMONIZING AND GET DOWN TO SPECIFICS I NOW RISE TO THAT CHALLENGE THOUGH WITH APPREHENSION SINCE MY IDEAS HAPPEN TO BE RATHER CONTROVERSIAL AND I FEAR MANY CONSERVATIVES WILL BE UNAPPRECIATIVE OF THEIR MERITS LET ME LAY DOWN THE BASIC PRINCIPLES THE BASIC DEFICIENCY SOME WILL SAY OF MY APPROACH I SHALL TO BEGIN WITH ASSUME THAT THE WELFARE STATE IS WITH US FOR BETTER OR WORSE AND THAT CONSERVATIVES SHOULD TRY TO MAKE IT BETTER RATHER THAN WORSE AND I SHALL PAY NO ATTENTION TO THE ECONOMICS OF THE WELFARE STATE WHICH I REGARD AS A SECONDARY ISSUE WHAT CONSERVATIVES OUGHT TO SEEK FIRST OF ALL IS A WELFARE STATE CONSISTENT WITH THE BASIC MORAL PRINCIPLES OF OUR CIVILIZATION AND THE BASIC POLITICAL PRINCIPLES OF OUR NATION THE ESSENTIAL PURPOSE OF POLITICS AFTER ALL IS TO TRANSMIT TO OUR CHILDREN A CIVILIZATION AND A NATION THAT THEY CAN BE PROUD OF THIS MEANS WE SHOULD FIGURE OUT WHAT WE WANT BEFORE WE CALCULATE WHAT WE CAN AFFORD NOT THE REVERSE WHICH IS THE NORMAL CONSERVATIVE PREDISPOSITION IN THIS RESPECT PUBLIC FINANCE DIFFERS FUNDAMENTALLY FROM HOUSEHOLD ECONOMICS IT HAS LONG BEEN MY OPINION THAT THE CONSERVATIVE HOSTILITY TO SOCIAL SECURITY DERIVED FROM A TRADITIONAL CONSERVATIVE FISCAL MONOMANIA LEADS TO POLITICAL IMPOTENCE AND A BANKRUPT SOCIAL POLICY OUR SOCIAL SECURITY SYSTEM IS ENORMOUSLY POPULAR IF THE AMERICAN PEOPLE WANT TO BE GENEROUS TO THEIR ELDERLY EVEN TO THE POINT OF SOME EXTRAVAGANCE I THINK IT IS VERY NICE OF THEM AFTER ALL THE ELDERLY ARE SUCH WONDERFUL UNPROBLEMATIC CITIZENS THEY ARE PATRIOTIC THEY DO NOT HAVE ILLEGITIMATE CHILDREN THEY DO NOT COMMIT CRIMES THEY DO NOT RIOT IN THE STREETS THEIR POPULAR ENTERTAINMENTS ARE DECENT RATHER THAN DEGRADING AND IF THEY FIND THEMSELVES A BIT FLUSH WITH FUNDS THEY HAPPILY DISTRIBUTE THE MONEY TO THEIR GRANDCHILDREN SO IN MY WELFARE STATE WE LEAVE SOCIAL SECURITY ALONE EXCEPT FOR BEING A BIT MORE GENEROUS PERHAPS CERTAINLY ALL RESTRICTIONS ON THE EARNINGS OF THE ELDERLY SHOULD BE ABOLISHED AS A MATTER OF FAIRNESS AS FOR MEDICARE WELL CONSERVATIVES BELIEVE IN HONORING THY FATHER AND MOTHER AND THE GOOD BOOK DOES NOT SAY THAT SUCH HONOR SHOULD BE LIMITED ONLY TO PARENTS OR GRANDPARENTS WHO ARE IN GOOD HEALTH AND DO NOT LIVE TOO LONG MEDICARE'S COST IS NOT A CONSERVATIVE PROBLEM EXCEPT FOR THOSE CONSERVATIVES WHOSE GOOD BOOK IS THE ANNUAL BUDGET AS WITH THE ELDERLY SO WITH CHILDREN EVER SINCE WORLD WAR II WEAKMINDED AND BUDGETCONSCIOUS REPUBLICAN ADMINISTRATIONS HAVE CONSPIRED WITH LIBERALS TO CHEAT THE CHILDREN OF MIDDLECLASS AND WORKINGCLASS HOUSEHOLDS THE INCOME TAX DEDUCTION FOR CHILDREN NOW 2500 WOULD NOW BE 7500 HAD IT BEEN INDEXED FOR INFLATION THE NEXT REPUBLICAN ADMINISTRATION SHOULD ADDRESS THIS SCANDAL GIVING IT THE HIGHEST PRIORITY THE BUDGET CONSEQUENCES ARE CONSIDERABLE SO PERHAPS WE WOULD WANT TO PHASE IN THE INDEXED INCREASE OVER A FIVEYEAR PERIOD BUT NOTHING LESS THAN THAT I WOULD SAY THE CHARMS OF THIS REFORM WOULD FROM THE CONSERVATIVE POINT OF VIEW BE SIGNIFICANT AND VARIOUS IT WOULD BE ENORMOUSLY POPULAR WHICH IS NO SMALL THING BUT IT WOULD ALSO BE MUCH MORE THAN THAT THESE HOUSEHOLDS REPRESENT THE CONSERVATIVE IDEAL OF THE NORMAL HOUSEHOLD THE HOUSEHOLD THAT EXEMPLIFIES FAMILY VALUES AND WE WISH TO ENCOURAGE SUCH HOUSEHOLDS INSTEAD OF ADDING TO THEIR FINANCIAL DIFFICULTIES AS WE HAVE BEEN DOING ONE COULD ALSO CONTEMPLATE UNANTICIPATED BENEFITS INSTEAD OF THE UNANTICIPATED ILLS THAT ARE SO CHARACTERISTIC OF LIBERAL REFORM AFTER ALL ONE OF THE THINGS THESE PARENTS COULD DO IS USE THE MONEY FOR THE CHILDREN'S EDUCATION THEREBY MAKING SCHOOL CHOICE AN ACTUALITY NOT MERELY AN ADVOCATED POSSIBILITY NOW FOR THE MORE CONTENTIOUS PART IT IS EASY AND ATTRACTIVE TO DISCRIMINATE IN FAVOR OF LARGE SECTIONS OF THE POPULATION IT IS FAR LESS ATTRACTIVE AND MAKES US ALL UNEASY TO DISCRIMINATE AGAINST ANY SECTION OF THE POPULATION YET SUCH DISCRIMINATION IS ABSOLUTELY NECESSARY IF WE ARE TO CHANGE THE WELFARE STATE INTO SOMETHING MORE DESERVING OF THAT NAME THIS ISSUE OF DISCRIMINATING AGAINST IS MOST SHARPLY POSED WHEN WE CONSIDER THE REFORM OF WELFARE ITSELF THE PROBLEM WITH OUR CURRENT WELFARE PROGRAMS IS NOT THAT THEY ARE COSTLY WHICH THEY ARE BUT THAT THEY HAVE SUCH PERVERSE CONSEQUENCES FOR THE PEOPLE THEY ARE SUPPOSED TO BENEFIT THE EMERGENCE OF A GROWING AND SELFPERPETUATING UNDERCLASS THAT MAKES OUR CITIES CLOSE TO UNINHABITABLE IS A DEMONSTRABLE CONSEQUENCE OF THE PRESENT LIBERALINSPIRED WELFARE SYSTEM THE SYSTEM BREEDS SOCIAL PATHOLOGIES CRIME JUVENILE DELINQUENCY ILLEGITIMACY DRUG ADDICTION AND ALCOHOLISM ALONG WITH THE DESTRUCTION OF A ONCE FUNCTIONING PUBLIC SCHOOL SYSTEM THE NEOLIBERAL RESPONSE ADVOCATED BY MR CLINTON DURING HIS CAMPAIGN WHICH CALLS FOR TWO YEARS AND OUT FOR ALL ABLEBODIED WELFARE RECIPIENTS IS A FANTASY IT WILL NOT HAPPEN WE ARE NOT GOING TO SEE STATE LEGISLATURES AND THE HUGE WELFARE ESTABLISHMENT RUTHLESSLY DUMPING WELFARE FAMILIES ONTO THE STREETS PUBLIC OPINION WILL NOT STAND FOR IT LIBERAL POLITICIANS WILL NOT BE ABLE TO STOMACH IT IT IS MERELY A RHETORICAL DIVERSIONARY TACTIC AND CONSERVATIVES WHO ARE NOW ATTRACTED TO IT WILL END UP DISTANCING THEMSELVES FROM IT AS FAST AS THEY CAN THE KEY TO A CONSERVATIVE REFORM WOULD BE A TO DISCOURAGE YOUNG WOMEN FROM HAVING AN ILLEGITIMATE CHILD IN THE FIRST PLACE AND B TO DISCRIMINATE BETWEEN WELFARE MOTHERS AND MOTHERS ON WELFARE SUCH DISCRIMINATION MUST HAVE A CLEAR MORAL BASIS MOTHERS ON WELFARE INCLUDES MARRIED WOMEN WITH CHILDREN WHO HAVE BEEN DIVORCED OR WIDOWED OR ABANDONED BY THEIR HUSBANDS MOST SUCH WOMEN HAVE LITTLE CONNECTION WITH ANY KIND OF UNDERCLASS FOR THE MOST PART THEY HAVE MIDDLECLASS ASPIRATIONS SUBSCRIBE TO FAMILY VALUES AND CREATE NO INTERGENERATIONAL CLASS OF WELFARE DEPENDENTS THEIR STAY ON WELFARE IS USUALLY LESS THAN TWO YEARS THEY DON'T LIKE BEING ON WELFARE THEY EXIT FROM THE WELFARE POPULATION BY REASON OF REMARRIAGE OR GETTING A JOB SOMETIMES AFTER DILIGENTLY TAKING VOCATIONAL TRAINING THEY ARE NOT A PROBLEM POPULATION AND DESERVE OUR GENEROUS ASSISTANCE AS WELL AS OUR SYMPATHY WELFARE MOTHERS ON THE OTHER HAND USUALLY END UP ON WELFARE AS A RESULT OF THEIR OWN ACTIONS YOUNG GIRLS PERMIT THEMSELVES TO GET PREGNANT AND TO BEAR A CHILD BECAUSE THE PROSPECT OF GOING ON WELFARE DOES NOT FRIGHTEN THEM WELFARE PERMITS THEM TO LEAVE HOMES THAT ARE OFTEN SQUALID OR WORSE IT PROVIDES THEM WITH SUPPORT IN CASH AND KIND FOOD STAMPS HOUSING ALLOWANCES MEDICAID THAT IS IN MANY WAYS SUPERIOR TO WHAT THEY COULD EARN WORKING AT THE MINIMUM WAGE THESE GIRLS SHOULD BE MADE TO LOOK UPON WELFARE NOT AS AN OPPORTUNITY BUT AS A FRIGHTENING POSSIBILITY IT FOLLOWS THAT THEY SHOULD RECEIVE NO HOUSING ALLOWANCE THIS IS PROBABLY THE MOST IMPORTANT CHANGE OF ALL HAVING YOUR OWN APARTMENT IN WHICH YOU CAN RAISE YOUR CHILD CAN BE SEEN AS FUN LIVING WITH YOUR CHILD IN YOUR PARENTS' HOME IS A LOT LESS ALLURING THIS WOULD ESPECIALLY BE THE CASE IF THE MOTHER RECEIVED NO FOOD STAMPS AND WAS INELIGIBLE FOR MEDICAID SHE WOULD HAVE TO RELY ON THE HOSPITAL CLINIC THE CHILD ON THE OTHER HAND WOULD BE ELIGIBLE FOR FOOD STAMPS AND MEDICAID AS WELL AS A CHILDREN'S CASH ALLOWANCE BUT THE NET EFFECT OF SUCH REFORMS WOULD BE TO REDUCE THE MOTHER'S INCOME BY 30 TO 50 AT WHICH POINT THERE IS LITTLE TO BE SAID IN FAVOR OF WELFARE FROM HER POINT OF VIEW THERE IS OF COURSE THE DANGER THAT SHE WON'T SPEND THE MONEY ON THE CHILD BUT THAT IS TRUE OF THE PRESENT SYSTEM AS WELL IN ADDITION ABLEBODIED MEN AND MENTALLY HEALTHY MEN WOULD HAVE NO ENTITLEMENT WHATEVER TO WELFARE IF THEY ARE ALCOHOLICS OR DRUG ADDICTS OR JUST ALLERGIC TO RESPONSIBILITIES THEY CAN RELY ON PRIVATE CHARITIES REMEMBER THE SALVATION ARMY THE GENERAL RULE HAS TO BE IF IT IS YOUR OWN BEHAVIOR THAT COULD LAND YOU ON WELFARE THEN YOU DON'T GET IT OR YOU GET VERY LITTLE OF IT SUCH A REFORM OF WELFARE AS I AM PROPOSING WILL SURELY BE DENOUNCED AS CRUEL AND JUDGMENTAL IT WOULD INDEED BE CRUEL AND UNFAIR TOO IF ALL THOSE CURRENTLY ON WELFARE THEIR SITUATIONS AND CHARACTERS FORMED BY THE CURRENT SYSTEM WERE SUMMARILY INCORPORATED IN THE NEW SYSTEM A PHASING OUT PROCEDURE WOULD HAVE TO BE INVENTED BUT I WOULD ARGUE THAT IT IS CRUELER TO ENTICE PEOPLE INTO THE BLIND ALLEY OF WELFARE WHERE THEIR VERY HUMANITY IS DISSIPATED AND DEGRADED THAN TO STERNLY WARN THEM OFF IN SOCIAL POLICY CONSEQUENCES OUGHT ALWAYS TO TRUMP INTENTIONS HOWEVER BENIGN THE JUDGMENTAL ISSUE HOWEVER DOES GET TO THE HEART OF THE MATTER A CONSERVATIVE WELFARE STATE SHOULD EXPRESS CONSERVATIVE MORAL VALUES JUST AS A LIBERAL WELFARE STATE TRIES TO IMPOSE LIBERAL MORAL VALUES UPON US IT SHOULD DISCRIMINATE IN FAVOR OF SATISFACTORY HUMAN RESULTS NOT HUMANE INTENTIONS IN THE END THE AMERICAN PEOPLE WILL HAVE AMPLE POLITICAL OPPORTUNITY TO DECIDE WHAT KIND OF SOCIETY THEY WISH TO LIVE IN WHAT KIND OF WELFARE STATE THEY WISH TO LIVE WITH BUT THEY WILL NEVER HAVE SUCH A CHOICE IF CONSERVATIVES FAIL TO OFFER THEM A CONSERVATIVE VISION MR KRISTOL AN AMERICAN ENTERPRISE INSTITUTE FELLOW COEDITS THE PUBLIC INTEREST AND PUBLISHES THE NATIONAL INTEREST SEE RELATED LETTER LETTERS TO THE EDITOR EARNING THEIR BREAD WITH DIGNITY WSJ JUNE 28 1993 9306140028 YY93 MM06 9306280172 930628 MYLEX TO POST LOSS FREMONT CALIF MYLEX CORP A MAKER OF COMPUTER PRODUCTS SAID LOWERTHANEXPECTED SALES WILL DEPRESS REVENUE AND LEAD TO AN ANTICIPATED NET LOSS FOR THE SECOND QUARTER IN THE RANGE OF FIVE CENTS A SHARE OR ABOUT THE SAME AS THE YEARAGO SECONDQUARTER LOSS 9306280171 930628 FINANCING BUSINESS CAROLINA POWER & LIGHT CO CAROLINA POWER & LIGHT CO RALEIGH NC SAID IT WILL ISSUE 100 MILLION IN FIVEYEAR FIRST MORTGAGE BONDS AT AN ANNUAL INTEREST RATE OF 5375 PROCEEDS WILL BE USED TO REPAY DEBT AMONG OTHER THINGS 9306280170 930628 NOVELL SETS STOCK BUYBACK PROVO UTAH NOVELL INC SAID ITS DIRECTORS APPROVED A STOCKREPURCHASE PROGRAM FOR AS MANY AS 111 MILLION SHARES ON THE OPEN MARKET THE COMPUTER NETWORKING COMPANY SAID THE REPURCHASED SHARES ARE INTENDED TO OFFSET THE 111 MILLION SHARES USED TO BUY UNIX SYSTEMS LABORATORIES AN ACQUISITION THAT WAS COMPLETED JUNE 14 9306280169 930628 WORLD MARKETS SOUTH KOREA'S ATTEMPTS TO BOLSTER STOCK MARKET LEAVE MUTUAL FUND FIRMS STRUGGLING WITH DEBT BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA FOR THREE YEARS THE SOUTH KOREAN GOVERNMENT HAS LED A FUTILE ATTEMPT TO STAVE OFF A STOCKMARKET CRASH NOW THE COUNTRY'S MOST INFLUENTIAL INVESTORS ARE PAYING THE PRICE THOUGH SHARE PRICES HERE ARE NOW REBOUNDING MANY INDIVIDUAL INVESTORS ARE WARY OF STOCKS AFTER BEING CHAFED TO DEATH BY A SLUMP THAT GOVERNMENT POLICY ONLY HELPED TO EXTEND FOR TWO YEARS TOO LONG SAYS MORGAN COLLINS A MANAGER IN THE INTERNATIONAL BUSINESS DEPARTMENT OF KOREA DEVELOPMENT SECURITIES CO MORE IMPORTANT HE AND OTHER ANALYSTS SAY THE COUNTRY'S POWERFUL MUTUAL FUND COMPANIES ARE FINANCIALLY EXHAUSTED AFTER BORROWING LOADS OF CASH TO BUY INTO A FALLING MARKET KOREA'S STOCK MARKET DOESN'T LOOK LIKE IT HAS ANY PROBLEMS THE COMPOSITE INDEX HAS JUMPED ABOUT 67 SINCE IT STOPPED TUMBLING IN AUGUST LAST YEAR CLOSING FRIDAY AT 76001 CONVENTIONAL WISDOM SUGGESTS THE MARKET IS BENEFITING LARGELY FROM AN IMPROVING TRADE BALANCE WHICH IS PUTTING MORE CASH IN THE HANDS OF INVESTORS AND FROM FALLING INTEREST RATES BUT A GLANCE AT KOREA'S THREE BIG MUTUAL FUND COMPANIES REVEALS THE DISCOURAGING SIDE OF THE PICTURE SINCE 1989 THE GOVERNMENT HAS USED THE THREE TO SOAK UP FALLING SHARES AND HELP SUPPORT THE MARKET THE POLICY SIMULTANEOUSLY MADE THE COMPANIES PACESETTERS FOR KOREAN STOCK TRADING AND MASSIVE DEBTORS TOGETHER DAEHAN INVESTMENT TRUST KOREA INVESTMENT TRUST AND CITIZENS INVESTMENT TRUST MANAGEMENT NOW HOLD FOR THEIR OWN ACCOUNTS STOCK VALUED AT 418 TRILLION WON 52 BILLION AND ALL SAY THEY'RE IGNORING GOVERNMENT ORDERS TO REMAIN NET BUYERS OF SHARES THEIR PROBLEMS STEM PARTLY FROM THE WAY THE GOVERNMENT ESTABLISHED ITS MUTUAL FUND INDUSTRY IN THE 1970S AND 1980S THE COMPANIES ARE MAJORITYOWNED BY PATCHWORKS OF FINANCIAL FIRMS AND MAJOR BANKS LEAVING THE GOVERNMENT TO DETERMINE THEIR BUSINESS STRATEGIES IN THE EARLY YEARS AS SHARE PRICES MOSTLY TRACKED UPWARD THE FUND COMPANIES' MAIN GOAL WAS TO INCREASE KOREA'S STOCKINVESTING POPULATION SAYS KIM YOUNGJIN DEPUTY GENERAL MANAGER OF THE INTERNATIONAL DEPARTMENT AT DAEHAN BUT THESE DAYS IN ADDITION TO MAKING MONEY FOR THEIR CLIENTS OUR MAJOR ROLE IS TO STABILIZE THE STOCK MARKET SAYS HAN DAESEOK A FUND MANAGER AT CITIZENS THAT'S ALWAYS BEEN A MISSION FOR THE COMPANIES BUT IT BECAME INCREASINGLY IMPORTANT WHEN THE MARKET BEGAN ITS PROTRACTED TUMBLE IN LATE 1989 IN DECEMBER THAT YEAR THE GOVERNMENT TOLD THE THREE COMPANIES TO BORROW A TOTAL OF THREE TRILLION WON AT INTEREST RATES BETWEEN 10 AND 13 SO THEY COULD BUY STOCK AND BUOY INVESTOR CONFIDENCE THE PLAN BACKFIRED SMALL INVESTORS FIGURED THAT IF THE GOVERNMENT WAS SUPPORTING THE MARKET THERE WAS A PROBLEM AND SOLD THEIR SHARES RECALLS KOREA DEVELOPMENT SECURITIES' MR COLLINS IN SEPTEMBER 1990 THE THREE COMPANIES WERE TOLD TO PROMISE INVESTORS A 10 ANNUAL RETURN OVER THREE YEARS IF THEY BOUGHT INTO SPECIAL GUARANTEED STOCK FUNDS ONCE AGAIN INVESTORS PROVED TO BE SMARTER LITTLE NEW MONEY WENT INTO THE FUNDS INVESTORS SIMPLY SHIFTED MONEY FROM OTHER EQUITY FUNDS INTO THE GUARANTEED ONES STOCK PRICES KEPT FALLING THE OUTCOME OF THE GOVERNMENT'S INTERVENTION WAS NOT SATISFACTORY BUT IF THE GOVERNMENT HAD NOT GOTTEN INVOLVED THE MARKET MIGHT HAVE COLLAPSED SAYS THE GOVERNMENT OFFICIAL THE MARKET WENT DOWN AND DOWN BUT IT DID NOT COLLAPSETHAT WAS THE BIG DIFFERENCE MORE RECENTLY THE GOVERNMENT HAS TRIED TO POSTPONE THE DAY OF RECKONING FOR ITS POLICY THROUGH THE BANK OF KOREA IT LENT MONEY TO THE MUTUAL FUND COMPANIES AT 3 IN AUGUST 1992 TO HELP THEM REPAY THE COMMERCIAL LOANS TAKEN OUT AT MUCH HIGHER RATES TWO YEARS EARLIER AT THE END OF THE DAY THIS MEANS THE TAXPAYER TAKES IT ON THE CHIN SAYS SEAN GOLDRICK CHIEF REPRESENTATIVE OF JAMES CAPEL & CO HERE AND THIS MEANS LESS MONEY FOR OTHER PROJECTS AT A TIME WHEN THE COUNTRY IS KEEN TO IMPROVE ITS INFRASTRUCTURE HE SAYS MEANWHILE THE GUARANTEED STOCK FUNDS HAVEN'T YET PRODUCED THE RETURNS THEY GUARANTEE AND THEY MATURE IN SEPTEMBER THE FUND COMPANIES SAY THEY WILL LIKELY ASK LARGE INVESTORS TO WAIT AN ADDITIONAL TWO OR THREE YEARS BEFORE REDEEMING THEIR SHARES IN THE GUARANTEED FUNDS BUT CITIZENS EXPECTS SOME SMALL INVESTORS WILL INSIST ON CASHING OUT STOCK PRICES MOVED SIDEWAYS FRIDAY IN TOKYO AS INVESTORS STAYED OUT OF THE ARENA AHEAD OF CLOSELY WATCHED LOCAL ELECTIONS LONDON STOCKS DRIFTED LOWER WHILE FRANKFURT SHARES ROSE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10574 UP 096 REFLECTING INCREASES IN ASIAN/PACIFIC AND EUROPEAN MARKETS CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15118 UP 443 OR 302 WITH PROMUS OF THE US POSTING AN 843 GAIN IN ITS LOCAL CURRENCY OILFIELD EQUIPMENT STOCKS TRAILED AT 11604 DOWN 152 OR 129 WITH HALLIBURTON OF THE US SLIDING 295 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH JUMPED 19255 POINTS THURSDAY SLIPPED 2550 TO 1965957 ON MONDAY THE NIKKEI INDEX ROSE 28552 POINTS TO CLOSE THE MORNING SESSION AT 1994509 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 260 MILLION SHARES OFF SLIGHTLY FROM 2509 MILLION SHARES THURSDAY GAINERS TOPPED LOSERS 522468 THE TOKYO STOCK PRICE INDEX OF ALL FIRSTSECTION ISSUES WHICH ADVANCED 2169 POINTS THURSDAY DECLINED 003 POINT TO 158405 INVESTORS WERE LOOKING TOWARD BALLOTING SUNDAY FOR THE TOKYO MUNICIPAL ASSEMBLY WITH THE OUTCOME EXPECTED TO FORESHADOW A JULY 18 VOTE FOR THE LOWER HOUSE OF PARLIAMENT THE NIKKEI INDEX PLUNGED EARLY LAST WEEK AS INVESTORS REACTED TO JAPAN'S POLITICAL CRISIS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLIPPED 72 POINTS TO 28875 IN A SLOW DAY THE FT 30STOCK INDEX FELL 48 POINTS TO 22645 VOLUME DROPPED TO 5078 MILLION SHARES FROM 5172 MILLION SHARES THURSDAY IN FRANKFURT THE DAX 30STOCK INDEX ROSE 895 POINTS TO 169524 PRICES WERE HELPED BY THE STRENGTH OF THE DOLLAR AND CONTINUED HOPES OF AN INTERESTRATE CUT FRENCH SHARE PRICES WERE SLIGHTLY WEAKER IN A DAY OF TECHNICAL CONSOLIDATION AND PROFITTAKING AMSTERDAM STOCKS FINISHED HIGHER MILAN SHARES ENDED MOSTLY LOWER IN SLUGGISH TRADING MADRID STOCKS DROPPED SHARPLY AS DOUBTS GREW THAT SPAIN'S PRIME MINISTER WOULD BE ABLE TO COBBLE TOGETHER A COALITION GOVERNMENT BELGIAN SHARE PRICES CLOSED HIGHER SUPPORTED BY THE STRONG DOLLAR AND LARGE GAINS IN A FEW STOCKS ZURICH STOCKS CLOSED HIGHER IN ACTIVE TRADING HONG KONG STOCKS SKIDDED ON DISAPPOINTMENT THAT THE BRITISH AND CHINESE HAVE FAILED TO MAKE MUCH HEADWAY IN NEGOTIATIONS ON THE FUTURE OF THE COLONY NEW ZEALAND SHARES ROSE SHARPLY ON ADVANCES IN SOME BLUECHIPS ISSUES TAIWAN STOCKS CONTINUED TO REBOUND 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 9306280168 930628 STEEL MILL IN TRINIDAD LAYS OFF 600 WORKERS SPECIAL TO THE WALL STREET JOURNAL PORTOFSPAIN TRINIDAD A TRINIDAD AND TOBAGO STEEL MILL TEMPORARILY SUSPENDED OPERATIONS AND LAID OFF 600 WORKERS CARIBBEAN ISPAT LTD SAID THE LAYOFFS AT THE PLANT RESULTED FROM ITS TEMPORARY CLOSURE CAUSED BY A RECENT STRIKE OF 200 EMPLOYEES MOSTLY IN SUPERVISORY POSITIONS THE COMPANY SAID IT HAD BECOME IMPOSSIBLE TO CONTROL OPERATIONS AT THE PLANT AS A RESULT OF THE WORK STOPPAGE THE STEEL WORKERS UNION SAID IT WILL FILE A COMPLAINT CHARGING THAT THE COMPANY CLOSED THE PLANT ILLEGALLY 9306280167 930628 TECHNOLOGY SPECTRUM INFORMATION EXPECTS TO POST LOSS FOR QUARTER AND YEAR MANHASSET NY SPECTRUM INFORMATION TECHNOLOGIES INC SAID IT EXPECTS TO REPORT LOSSES FOR THE FISCAL FOURTH QUARTER AND YEAR AND WILL RESTATE SEVERAL PRIOR QUARTERS THE DATA COMMUNICATIONS TECHNOLOGY COMPANY HAS BEEN EMBROILED IN CONTROVERSY OVER THE VALUE OF ITS RECENT LICENSING AGREEMENT WITH AMERICAN TELEPHONE & TELEGRAPH CO ALTHOUGH SPECTRUM'S PRESIDENT SAID THE COMPANY WOULD REAP HUNDREDS OF MILLIONS OF DOLLARS IN REVENUE FROM ITS TECHNOLOGY LICENSE TO AT&T AT&T SAID THE LICENSE WOULD YIELD SPECTRUM ONLY A FEW MILLION DOLLARS AFTER AT&T DISPUTED SPECTRUM'S CLAIMS THE COMPANY'S FASTRISING SHARES PLUMMETED SPARKING SHAREHOLDER LAWSUITS SPECTRUM SAID IT EXPECTS TO REPORT A LOSS OF 32 MILLION FOR THE FOURTH QUARTER ENDED MARCH 31 BASED ON PRELIMINARY RESULTS IT ADDED THAT IT WILL REPORT A LOSS OF 98 MILLION OR 16 CENTS A SHARE FOR THE YEAR FURTHER IT WILL RESTATE ITS QUARTERS ENDED JUNE 30 SEPT 30 AND DEC 31 1992 DUE TO CORRECTIONS IN ACCOUNTING FOR INVENTORY AND RECOGNITION OF REVENUE AT THE SUBSIDIARY LEVEL SPECTRUM SAID THE RESTATEMENTS PRIMARILY RESULTING FROM PAST ACQUISITIONS SHOULD BE THE LAST ADJUSTMENTS MADE IN RELATION TO THE ACQUISITIONS IT ALSO SAID THAT IT HAS SUBSTANTIAL CASH RESERVES TO FUND CONTINUING OPERATIONS FOR FISCAL 1992 THE COMPANY REPORTED A NET LOSS OF 470000 OR ONE CENT A SHARE THE RESULTS INCLUDED A ONETIME CHARGE OF 892000 FROM THE ACQUISITION OF COMPUTER BAY AND THE COMPUTER BAY PROVISION FOR FEDERAL INCOME TAXES OF 728000 OFFSET BY A NONRECURRING GAIN FROM DEBT FORGIVENESS OF 303000 SPECTRUM MADE THE ANNOUNCEMENT LATE FRIDAY AFTER THE CLOSE OF TRADING ITS SHARES CLOSED AT 394 DOWN THREE CENTS IN NATIONAL OVERTHECOUNTER TRADING 9306280166 930628 TRASH THAT RECYCLING PLAN BY J WINSTON PORTER THIS SUMMER THE CHAIRMAN OF THE SENATE ENVIRONMENT COMMITTEE MAX BAUCUS D MONT PLANS TO MAKE GOOD ON A PROMISE HE MADE TO THE CONFERENCE OF MAYORS IN APRIL IT WAS THERE THAT HE SAID HE WOULD PRESS FOR BOLD NEW RECYCLING LEGISLATION SUCH A BILL MODELED AFTER A PLAN BEING TRIED IN GERMANY COULD REQUIRE MANUFACTURERS TO ABSORB THE DISPOSAL COSTS OF THEIR PRODUCTS' PACKAGING BUT BEFORE SEN BAUCUS GETS TOO EXCITED ABOUT FOISTING A VERSION OF THIS ON AMERICAN BUSINESSES AND CONSUMERS IT WOULD BE WISE TO TAKE A CLOSER LOOK GERMANY'S RECYCLING SYSTEM IS RAPIDLY UNRAVELING THE COMPANY IN CHARGE OF RECYCLING GERMANY'S TRASH DUALES SYSTEM DEUTSCHLAND DSD ANNOUNCED RECENTLY THAT IT IS 180 MILLION TO 300 MILLION IN THE RED AND THE NEWS HAS UNLEASHED SOME HARSH OFFICIAL CRITICISM THE GREEN DOT' HAS RUN AGROUND WAS THE JUDGMENT OF ONE STAFFER ON THE BUNDESTAG'S ENVIRONMENT COMMITTEE REFERRING TO THE SYMBOL ON GERMAN PACKAGING THAT SIGNIFIES IT IS RECYCLABLE THROUGH THE DSD SYSTEM INDUSTRY HAS BITTEN OFF MORE THAN IT CAN CHEW A STATE SENATOR FROM HAMBURG CALLED THE PROGRAM FOOLISH ADDING THAT IN ITS PRESENT FORM THE PLAN LEADS TO NEW ENVIRONMENTAL BURDENS HOW GERMANY GOT TO THIS POINT IS AN INSTRUCTIVE TALE FOR SEN BAUCUS AND THE AMERICAN RECYCLING LOBBY IN 1991 BOWING TO HEAVY GREEN PRESSURE GERMANY PASSED A LAW REQUIRING ITS BUSINESSES TO TAKE BACK AND RECYCLE ALL FORMS OF PACKAGING BOTTLES CANS CONTAINERS CARTONS AND SACKS SUCH PACKAGING AMOUNTS TO ABOUT ONETHIRD OF GERMANY'S MUNICIPAL TRASH TO PROVE IT MEANT BUSINESS THE GOVERNMENT SET AMBITIOUS RECYCLING RATES BY 1995 72 OF ALL GERMAN GLASS STEEL AND ALUMINUM PACKAGING IS TO BE RECYCLED FOR PAPER PAPERBOARD PLASTICS AND COMPOSITES THE TARGET IS A SLIGHTLY MORE MODEST 64 RETAILERS QUICKLY LOBBIED FOR AND WON AN AMENDMENT EXEMPTING THEM FROM ACCEPTING WASTES AT THEIR STORES LEAVING IT TO THE MANUFACTURERS AND DISTRIBUTORS ALONE TO GUARANTEE AND PAY FOR THE COLLECTION AND RECYCLING OF ALL PACKAGING WASTES LEFT HOLDING THE BAG SOME 600 PRODUCERS RESPONDED BY CREATING THE DSD A NONPROFIT COMPANY TO COLLECT AND SORT THE STUFF UNTIL NOW THE DSD HAS FUNDED ITSELF THROUGH A SYSTEM OF LICENSE FEES ON EACH TYPE OF PACKAGING MATERIAL UPON PAYMENT OF THE FEE A PRODUCER IS ENTITLED TO PLACE A GREEN DOT ON ITS PACKAGING WHICH TELLS CONSUMERS THAT RECYCLING IS GUARANTEED DSD'S FEES ARE CURRENTLY BASED ON VOLUME BUT THIS APPROACH HAS NOT PROVED COSTEFFECTIVE BEGINNING THIS OCTOBER DSD AIMS TO COVER EXPENSES BY CHARGING MEMBER COMPANIES LICENSE FEES THAT MORE CLOSELY REFLECT ITS COSTS FOR COLLECTING AND SEPARATING TRASH 45 CENTS PER POUND OF GLASS PACKAGING 95 CENTS FOR PAPER 16 CENTS FOR STEEL 285 CENTS FOR ALUMINUM 47 CENTS FOR COMPOSITES AND 74 CENTS FOR PLASTICS MOST OF THESE FEES IT SHOULD BE NOTED GREATLY EXCEED THE MARKET VALUE OF THE RECYCLED MATERIAL DSD'S REVENUES FROM THESE FEES ARE EXPECTED TO RANGE FROM 60 MILLION A YEAR FOR ALUMINUM TO 13 BILLION FOR PLASTICS THE COMPANY EXPECTS TO TAKE IN 25 BILLION IN 1994 BUT WHETHER THIS WILL BE ENOUGH TO KEEP THE SYSTEM GOING SEEMS LESS AND LESS CERTAIN DSD SERVICES 96 OF GERMAN HOUSEHOLDS IN MANY AREAS CONSUMERS MUST BRING THEIR GLASS BOTTLES AND SOMETIMES PAPER TO COMMUNITY DROPOFF POINTS AT A GROWING NUMBER OF RESIDENCES AND COMMERCIAL ESTABLISHMENTS A BLUE OR GREEN BIN IS PROVIDED FOR PAPER PACKAGING AND A YELLOW BIN FOR ALL OTHER PACKAGING IN OTHER WORDS THE CONTENTS OF THE YELLOW BINS LOOK A LOT LIKE WELL REGULAR TRASH THE MELANGE MUST FIRST GO TO ONE OF ABOUT 200 SORTING CENTERS WHERE STEEL IS PULLED OUT MAGNETICALLY AND THE REST IS SEPARATED BY HAND A SLOW AND COSTLY PROCESS WHILE THE EXTRAORDINARY EXPENSE OF GERMANY'S SYSTEM IS CLEAR THE REAL ENVIRONMENTAL BENEFIT EXCEPT PERHAPS FOR A MODEST REDUCTION IN PACKAGING TO LOWER RECYCLING COSTS IS NOT THIS IS ESPECIALLY TRUE WHEN IT COMES TO PLASTIC A VERY LARGE COMPONENT OF THE GERMAN PACKAGING MARKET THE ACHILLES' HEEL OF THE DUALES SYSTEM IS MADE OF PLASTIC WROTE WOLFGANG ROTH IN THE SUEDDEUTSCHE ZEITUNG THE QUESTION THAT IS BECOMING INCREASINGLY OBVIOUS IS IS INTENSIVE REPROCESSING IN THIS SECTOR EVEN DESIRABLE ON ECOLOGICAL GROUNDS IN SWEDEN SWITZERLAND FRANCE PARTS OF THE US AND OTHER COUNTRIES TRASH INCLUDING PLASTIC IS SAFELY INCINERATED TO MAKE HEAT OR ELECTRICITY ARGUABLY A FORM OF RECYCLING INCIDENTALLY PLASTICS ARE CERTAINLY A CLEANER FUEL THAN COAL ONE OF GERMANY'S MAJOR ENERGY SOURCES GERMANY'S RECYCLING COSTS PER TON RANGE FROM ABOUT 100 FOR GLASS TO MORE THAN 2000 FOR PLASTICS OVERALL COST IS ABOUT 500 PER TON FOR ALL GERMAN RECYCLABLES IN THE US BY COMPARISON TRASH IS COLLECTED AND SENT TO LANDFILLS OR WASTETOENERGY INCINERATORS FOR COSTS OF ABOUT 75 TO 150 PER TON PERTON COLLECTION AND SORTING COSTS FOR RECYCLABLES ARE ABOUT 150 TO 250 AND AMERICANS RECYCLE SOME 22 OF THEIR TRASH WHICH COMPARES FAVORABLY WITH GERMANS WHOSE HIGH RECYCLING RATES APPLY ONLY TO PACKAGING WASTES THE OVERALL GERMAN RECYCLING RATE APPEARS ALSO TO BE IN THE LOW 20 RANGE IN TODAY'S GERMANY RECYCLING AT ANY COST HAS OVERWHELMED COMMON SENSE AND ECONOMICS WITH INTERNATIONAL REPERCUSSIONS THE MAIN FLAW OF THE GERMAN GREEN DOT SYSTEM IS THAT IT GOES WAY OVERBOARD IN COLLECTING ALL TYPES OF PACKAGING AT RIGIDLY MANDATED RATES THIS INTRODUCES ENORMOUS MARKET INEFFICIENCIES HUGE COSTS ARE BEING INCURRED FOR SEPARATING A LOT OF PACKAGING THAT HAS ALMOST NO MARKET VALUE AND A DEARTH OF DOMESTIC BUYERS HAS LED TO THE DUMPING OF CHEAP GERMAN RECYCLABLES ON FOREIGN MARKETS DEPRESSING PRICES IN NEIGHBORING COUNTRIES IN 1988 AS AN ASSISTANT ADMINISTRATOR WITH THE ENVIRONMENTAL PROTECTION AGENCY I SET A NATIONAL GOAL IN THE US OF A 25 RECYCLING RATE SOME STATE LEGISLATURES HAVE SET THEIR OWN TARGETS THAT AVERAGE ABOUT 30 BUT THESE ARE MOSTLY AIMED AT THE TOTAL WASTE STREAM NOT AT SPECIFIC COMPONENTS IN THE US THE FREE MARKET HAS BEEN ALLOWED TO WORK SO THOSE ITEMS WITH THE MOST VALUE AND LEAST COST TO COLLECT AND REPROCESS TEND TO BE THE ONES RECYCLED TODAY HALF OF ALL RECYCLING TONNAGE IN THE US IS COMPOSED OF CORRUGATED BOXES AND NEWSPAPERS MOST OF THE REST IS MADE UP OF A FEW TYPES OF CANS AND BOTTLES IN THE BRAVE NEW WORLD OF ENVIRONMENTAL CORRECTNESS IT IS TIME TO SUBJECT GREEN IDEOLOGIES TO SERIOUS NUMBER CRUNCHING REGARDING REAL ECONOMIC AND ENVIRONMENTAL IMPACT WE CAN START WITH DEBUNKING THE IDEA THAT GERMANY'S FLOUNDERING RECYCLING SYSTEM WOULD WORK HERE MR PORTER IS PRESIDENT OF THE WASTE POLICY CENTER IN STERLING VA HE SERVED AS EPA ASSISTANT ADMINISTRATOR FOR SOLID AND HAZARDOUS WASTES FROM 1985 TO 1989 9306280165 930628 EVERGREEN BANCORPKEYCORP GLENS FALLS NY EVERGREEN BANCORP'S BOARD SAID IT ISN'T IN A POSITION TO REPLY TO KEYCORP'S OFFER TO PURCHASE EVERGREEN AS PREVIOUSLY REPORTED KEYCORP SUBMITTED AN UNSOLICITED OFFER TO PURCHASE EVERGREEN LAST WEEK AND SAID ITS OFFER FOR UNDISCLOSED TERMS EXPIRES WEDNESDAY EVERGREEN SAID IT IS IN THE MIDST OF SEVERAL STUDIES TO DEFINE AND EVALUATE HOW BEST TO MAXIMIZE SHAREHOLDER VALUE OVER THE LONG TERM 9306280164 930628 WHO'S NEWS SONY CORP SONY CORP TOKYO ROBERT BOWLIN 40 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF SONY MUSIC ENTERTAINMENT INC AND SENIOR VICE PRESIDENT OF SONY MUSIC INTERNATIONAL NEW YORKBASED UNITS OF THIS CONSUMER ELECTRONICS AND ENTERTAINMENT CONCERN BOTH POSITIONS ARE NEWLY CREATED MR BOWLIN HAD BEEN CHIEF FINANCIAL OFFICER AT SONY MUSIC ENTERTAINMENT 9306280163 930628 ENTERGY AND GULF STATES MERGER AUSTIN TEXAS IN ANOTHER STEP TOWARD THE 23 BILLION MERGER BETWEEN ENTERGY CORP AND GULF STATES UTILITIES CO AN ADMINISTRATIVE LAW JUDGE OF THE PUBLIC UTILITY COMMISSION OF TEXAS RECOMMENDED APPROVAL OF THE TRANSACTION ADMINISTRATIVE LAW JUDGE KATHLEEN SANFORD RULED THAT THE MERGER IS IN THE PUBLIC INTEREST THUS CLEARING THE WAY FOR A HEARING BEFORE THE THREEPERSON TEXAS PUC ON JULY 21 ACCORDING TO A GULF STATES SPOKESMAN THE LOUISIANA PUBLIC SERVICE COMMISSION VOTED IN APRIL TO APPROVE THE MERGER WITH CERTAIN CONDITIONS THE MERGER WOULD MAKE NEW ORLEANSBASED ENTERGY ONE OF THE LARGEST UTILITY HOLDING COMPANIES IN THE US GULF STATES IS BASED IN BEAUMONT TEXAS 9306280161 930628 HANSON CHAIRMAN SAYS HE'LL REFUSE DEMANDS OF STRIKING US MINERS SPECIAL TO THE WALL STREET JOURNAL LONDON HANSON PLC CHAIRMAN LORD HANSON SAID THE CONGLOMERATE'S MINING SUBSIDIARY PEABODY HOLDING CO WON'T GIVE IN TO DEMANDS OF STRIKING US MINE WORKERS I WOULD LIKE EVERYONE CONCERNED THE UNION LEADERSHIP AND OUR EMPLOYEES TO KNOW THAT HANSON PLC WILL IF NECESSARY BE FORCED TO ACCEPT THE SHORTTERM COSTS IN LOST BUSINESS IN THE SURE KNOWLEDGE THAT THE UNION'S DEMANDS FOR WHAT IT CALLS JOB SECURITY WILL IN THE LONG RUN BE MUCH MORE COSTLY BOTH IN FINANCIAL TERMS FOR PEABODY AND IN THE NUMBERS OF MINING JOBS LOST BY THE UNION RANK AND FILE LORD HANSON TOLD SHAREHOLDERS AT A GENERAL MEETING STRIKES AGAINST TWO SUBSIDIARIES OF PEABODY PEABODY COAL CO AND EASTERN ASSOCIATED COAL CORP WERE CALLED FEB 2 BY THE UNITED MINE WORKERS OF AMERICA OVER THE ISSUE OF JOB SECURITY THE STRIKE WAS HALTED BETWEEN MARCH 3 AND MAY 3 BUT HAS RESUMED IN A SERIES OF SELECTIVE ACTIONS THE UMWA HAS THREATENED TO BROADEN THE STRIKE TO INCLUDE 42000 MINERS WHO PRODUCE 28 OF THE US'S COAL PEABODY CHAIRMAN IRL ENGELHARDT SAID THE TWO STRUCK SUBSIDIARIES CONTRIBUTE JUST OVER HALF OF THE TOTAL EARNINGS OF PEABODY THE STRIKE REDUCED PEABODY'S EARNINGS BY 15 MILLION 22 MILLION FOR THE SIX MONTHS ENDED MARCH 31 9306280160 930628 HYUNDAI AFFILIATE GETS JOB SEOUL SOUTH KOREA HYUNDAI ENGINEERING & CONSTRUCTION CO WAS AWARDED AN 80 MILLION CONTRACT TO BUILD ELECTRICAL FACILITIES IN LEBANON COMPANY OFFICIALS SAID HYUNDAI IS AN AFFILIATE OF HYUNDAI GROUP A SOUTH KOREAN CONGLOMERATE UNDER THE CONTRACT HYUNDAI WILL BUILD 52 TRANSFORMER SUBSTATIONS 10 MOVABLE TRANSFORMER SUBSTATIONS AND ELECTRICAL TRANSMISSION ROUTES IN LEBANON OVER AN 18MONTH PERIOD THEY SAID 9306280159 930628 LAW BUSINESS TO LOOK TO CONGRESS AS JUSTICES AGAIN DECLINE TO CURB PUNITIVE DAMAGES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BUSINESS ADVOCATES VOWED TO STEP UP PRESSURE FOR FEDERAL LEGISLATION THAT WOULD LIMIT PUNITIVE DAMAGES AFTER FAILING TO GET SATISFACTION FROM THE SUPREME COURT THE HIGH COURT IN A 63 RULING ISSUED FRIDAY DECLINED FOR THE FIFTH TIME IN RECENT YEARS TO PLACE CLEAR CONSTITUTIONAL LIMITS ON PUNITIVE DAMAGES AWARDED IN CIVIL LAWSUITS INDEED ALTHOUGH THE JUSTICES COULDN'T MUSTER A MAJORITY FOR ANY ONE OPINION A THREEJUSTICE PLURALITY APPEARED TO RETREAT FROM TENTATIVE LIMITS ON PUNITIVE DAMAGES THAT THE COURT ANNOUNCED TWO YEARS AGO PUNITIVE DAMAGES ARE AWARDED TO DETER OR PUNISH HARMFUL CONDUCT IN CONTRAST COMPENSATORY DAMAGES REIMBURSE A PARTY'S ECONOMIC LOSS PRINCIPLES GOVERNING BOTH TYPES OF CIVIL AWARDS HAVE BEEN WORKED OUT BY STATECOURT JUDGES AND TO A LESSER EXTENT BY STATE LEGISLATORS THE MAIN THRUST OF FRIDAY'S DECISION WAS THAT FEDERAL JUDGES SHOULD HAVE LITTLE TO ADD OVER THE YEARS A NUMBER OF JUSTICES HAVE ECHOED CONCERNS THAT LARGE PUNITIVE AWARDS ARE UNFAIRLY HURTING SOME CORPORATE DEFENDANTS AND DISTORTING THE CIVIL LEGAL SYSTEM BUT THE HIGH COURT HASN'T FOUND A CONSTITUTIONAL FOUNDATION FROM WHICH TO TINKER WITH PUNITIVE DAMAGES CONSUMER GROUPS WHICH DEFEND PUNITIVE DAMAGES AS A NECESSARY CHECK ON CORPORATE WRONGDOING CELEBRATED THE RULING WE'RE THRILLED SAID LINDA LIPSEN OF CONSUMERS UNION THIS SHOULD BE THE END OF THE LINE FOR THESE CASES AT THE SUPREME COURT THE BATTLE MOVES TO CONGRESS WHERE LEGISLATION HAS BEEN INTRODUCED THAT WOULD IMPOSE FEDERAL GUIDELINES FOR PUNITIVE DAMAGES AS A PART OF A LARGER EFFORT TO LIMIT PRODUCTLIABILITY LAWSUITS SIMILAR LEGISLATION DIED IN THE SENATE LAST YEAR ALTHOUGH IT MADE MORE PROGRESS THAN EARLIER VERSIONS IN YEARS PAST THE CASE ON WHICH THE SUPREME COURT RULED WAS A REMINDER THAT CONTRARY TO THE RHETORIC OF CONSUMER AND CORPORATE INTERESTS PUNITIVEDAMAGE DISPUTES OFTEN ARISE BETWEEN BUSINESSES WITHOUT ANY ALLEGATION OF PERSONAL HARM THE CASE INVOLVED AN APPEAL BY A USX CORP UNIT TXO PRODUCTION CORP WHICH WAS FOUND BY A WEST VIRGINIA JURY TO HAVE ACTED FRAUDULENTLY AND TO HAVE FILED A FRIVOLOUS LAWSUIT INVOLVING CONTESTED RIGHTS TO OIL AND GAS IN THAT STATE THE DEFENDANT ALLIANCE RESOURCES CORP SUCCEEDED IN ITS COUNTERCLAIM AGAINST TXO AND WAS AWARDED 19000 IN COMPENSATORY DAMAGES TO PAY FOR ITS LEGAL FEES ALTHOUGH THE JURY FOUND NO PROPERTY DAMAGE IT TACKED ON 10 MILLION IN PUNITIVE DAMAGES AGAINST TXO THE TRIAL JUDGE SUMMARILY REJECTED TXO'S REQUEST THAT THE PUNITIVE AWARD BE REDUCED AND ON APPEAL THE WEST VIRGINIA SUPREME COURT SAID THE DAMAGES WERE APPROPRIATE ONCE THE SUPREME COURT AGREED TO HEAR TXO'S APPEAL BUSINESS GROUPS EXPRESSED CONFIDENCE THAT THE JUSTICES HAD FINALLY FOUND A PUNITIVE AWARD THEY WANTED TO REVERSE IN A 1991 CASE A MAJORITY OF THE COURT HAD SAID THAT THE CONSTITUTIONAL RIGHT TO DUE PROCESS PLACES SOME CEILING ON PUNITIVE AWARDS AND IMPOSES SOME OBLIGATION ON TRIAL AND APPELLATE JUDGES TO SUPERVISE JURY DECISIONS BUT BEYOND THAT THE GUIDANCE WAS VAGUE IN AFFIRMING THE AWARD AGAINST TXO THE HIGH COURT LAST WEEK BACKED AWAY EVEN FURTHER FROM GIVING SPECIFIC GUIDANCE TO THE LOWER COURTS WRITING FOR THE PLURALITY JUSTICE JOHN PAUL STEVENS BRUSHED ASIDE THE NOTION INTRODUCED IN THE 1991 DECISION THAT PUNITIVE DAMAGES THAT ARE FOUR TIMES THE AMOUNT OF COMPENSATORY DAMAGES MAY BE CLOSE TO THE LINE OF CONSTITUTIONAL PERMISSIBILITY TXO BUILT ITS MAIN ARGUMENT ON THE FACT THAT THE PUNITIVE DAMAGES IN ITS CASE WERE 526 TIMES THE SIZE OF THE COMPENSATORY AWARD BUT JUSTICE STEVENS SAID THAT THE CENTRAL FOCUS SHOULDN'T BE ON SUCH RATIOS OR ON ANY OTHER FORMULAIC TEST INSTEAD JUDGES SHOULD REVIEW PUNITIVE AWARDS ON A CASEBYCASE BASIS TO MAKE SURE THAT THEY ARE REASONABLE JUSTICE STEVENS WROTE ONLY AWARDS THAT ARE GROSSLY EXCESSIVE DESERVE TO BE REVERSED HE ADDED EVEN THE COMMON PRACTICE OF COMPARING AWARDS IN SIMILAR CASES ORDINARILY WON'T REVEAL A CONSTITUTIONAL VIOLATION BECAUSE NO TWO CASES ARE TRULY IDENTICAL HE SAID THE DISPARITY BETWEEN THE COMPENSATORY AND PUNITIVE AWARDS AGAINST TXO SEEMS LESS SEVERE IF ONE CONSIDERS THE POTENTIAL HARM THE COMPANY MIGHT HAVE CAUSED JUSTICE STEVENS SAID WHILE SCOLDING ALLIANCE FOR EXAGGERATING THE POTENTIAL HARM FROM TXO'S FRAUDULENT PRACTICES HE SUGGESTED THAT IT MIGHT HAVE RUN INTO THE MILLIONS OF DOLLARS IN THAT LIGHT THE 10 MILLION PUNITIVE AWARD DOESN'T JAR ONE'S CONSTITUTIONAL SENSIBILITIES HE CONCLUDED JUSTICE STEVENS WAVED OFF OBJECTIONS TO THE COLORFUL STYLE OF THE STATE SUPREME COURT'S DECISION WHICH INCLUDED COMMENTARY ON WHETHER DEFENDANTS ARE REALLY STUPID OR REALLY MEAN BEHIND THIS RHETORIC WHICH INCENSED MANY BUSINESS LAWYERS WAS A THOROUGH WELLREASONED OPINION HE SAID CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICE HARRY BLACKMUN JOINED THE PLURALITY JUSTICE ANTHONY KENNEDY JOINED PART OF THE OPINION AND AGREED WITH ITS CONCLUSION JUSTICE ANTONIN SCALIA JOINED BY JUSTICE CLARENCE THOMAS WROTE A CONCURRING OPINION REITERATING HIS VIEW THAT FEDERAL JUDGES SHOULD STAY OUT OF THIS AREA ENTIRELY JUSTICE SANDRA DAY O'CONNOR FILED A DISSENT WHICH JUSTICES BYRON WHITE AND DAVID SOUTER JOINED IN PART OR ENTIRELY JUSTICE O'CONNOR MOCKED THE REALLY STUPID REALLY MEAN DISTINCTION AND CALLED THE TXO AWARD MONSTROUS TXO PRODUCTION CORP VS ALLIANCE RESOURCES CORP 9306280158 930628 WHO'S NEWS SOUTHWESTERN BELL CORP SOUTHWESTERN BELL CORP SAN ANTONIO PATRICIA P UPTON 54 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AROMATIQUE INC WAS NAMED A DIRECTOR OF THE REGIONAL BELL TELECOMMUNICATIONS COMPANY INCREASING THE BOARD'S SIZE TO 15 MEMBERS AROMATIQUE BASED IN HEBER SPRINGS ARK MANUFACTURES AND DISTRIBUTES HOMEFRAGRANCE AND BATH PRODUCTS 9306280157 930628 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST SINGLE STATE MUNI BOND WEDNESDAY'S CLOSE EASSUMES RIGHTS OFFERING FULLY SUBSCRIBED FTO BE LISTED ON AMERICAN STOCK EXCHANGE ON 6/25/93 AND SPLIT 100FOR1 ON 6/17/93 VCONVERTED AT COMMERCIAL RAND RATE YIN CANADIAN DOLLARS ZNOT TRADING ON ANY EXCHANGE N/ANOT AVAILABLE OR NOT APPLICABLE 9306280156 930628 NORTHWEST AIR PILOTS CONTINUE TALKS UNDER THREAT OF BANKRUPTCYLAW FILING BY ROBERT L ROSE AND STEVEN LIPIN STAFF REPORTERS OF THE WALL STREET JOURNAL NORTHWEST AIRLINES WHICH IS POISED TO FILE FOR BANKRUPTCYLAW PROTECTION IF IT CAN'T GET LABORCOST CUTS CONTINUED TALKS DURING THE WEEKEND WITH ITS PILOTS UNION AS THE TWO SIDES DISCUSSED ISSUES SUCH AS HOW TO NARROW A 65 MILLION GAP OVER HOW MUCH THE PILOTS WOULD GIVE UP OVER THREE YEARS NORTHWEST'S BOARD PLANNED TO MEET BY TELEPHONE TODAY RECONVENING A MEETING THAT LASTED MORE THAN FOUR HOURS FRIDAY THE COMPANY BURDENED BY DEBT FROM ITS 1989 LEVERAGED BUYOUT AND BY TOUGH TIMES IN ITS INDUSTRY IS UNDER PRESSURE TO ACT QUICKLY WHILE TALK OF A BANKRUPTCYLAW FILING INCREASES PRESSURE ON THE UNIONS IT ALSO SCARES AWAY PASSENGERS NORTHWEST A ST PAUL MINN UNIT OF CLOSELY HELD WINGS HOLDINGS INC EMPHASIZED IN A STATEMENT THAT WHILE ITS BOARD IS CONSIDERING ALL THE FINANCIAL OPTIONS NONE WOULD AFFECT OPERATIONS OR PASSENGERS IN ANY WAY ALTHOUGH NORTHWEST OFFICIALS HAVE PRIVATELY SET AND BYPASSED BANKRUPTCY DEADLINES BEFORE FEW DOUBT THE CARRIER IS READY IT HAS FOR EXAMPLE ARRANGED A 350 MILLION LOAN THROUGH BANKERS TRUST NEW YORK CORP THAT COULD BE USED IF THE TROUBLED CARRIER IS FORCED TO FILE FOR BANKRUPTCY PROTECTION BANKERS FAMILIAR WITH THE TRANSACTION SAY NORTHWEST OFFICIALS HAVE ALSO GIVEN LABOR LEADERS THE COMPANY'S PLAN TO CUT LABOR COSTS MORE THAN TWICE THE 886 MILLION IT'S ASKING NOW IF IT GOES INTO BANKRUPTCYLAW REORGANIZATION THE 350 MILLION SOCALLED DEBTORINPOSSESSION LOAN WHICH WILL BE TAPPED ONLY IF NORTHWEST FILES FOR BANKRUPTCY WAS ARRANGED BY BANKERS TRUST THE LEAD BANK THAT ALSO HOLDS AN EQUITY STAKE IN NORTHWEST AS WELL AS BARCLAYS BANK PLC WELLS FARGO & CO SUNAMERICA INC AND CREDIT SUISSE BANKERS FAMILIAR WITH THE TRANSACTION SAY THOSE INSTITUTIONS DECLINED COMMENT OR COULDN'T BE REACHED MEANWHILE LENDERS ARE EXPECTED TO DECIDE BY TOMORROW WHETHER TO APPROVE TERMS OF AN AGREEMENT THAT WOULD DEFER MUCH OF THE BANK PAYMENTS UNTIL 1997 THE ACCORD IS CONDITIONED UPON RECEIVING THE WAGE CONCESSIONS FROM THE UNIONS WHILE THE AIRLINE NEEDED TWOTHIRDS APPROVAL OF ITS MORE THAN 150 BANKS TO DEFER THE TERM LOAN IT NEEDS 100 OF THE LENDERS TO DEFER THE 600 MILLION REVOLVING CREDIT THAT MATURES IN SEPTEMBER 1994 THAT MAKES APPROVAL OF THAT PART OF THE PLAN MORE DIFFICULT 9306280155 930628 SENATE REPORT ON INSURER CITES INTERNAL WOES BAD MANAGEMENT FRAUD LEFT EMPIRE BLUE CROSS CRITICALLY ILL' PANEL BY COLLEEN AE SLEVIN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BAD MANAGEMENT FRAUD AND A BOARD ASLEEP AT THE WHEEL HAS LEFT EMPIRE BLUE CROSS AND BLUE SHIELD CRITICALLY ILL A SENATE COMMITTEE REPORT SAID THE NATION'S LARGEST NONPROFIT HEALTH INSURER WITH MORE THAN EIGHT MILLION SUBSCRIBERS AND PREMIUMS OF MORE THAN 7 BILLION ANNUALLY IN THE PAST HAS BLAMED ITS FINANCIAL WOES ON OUTSIDE FACTORS SUCH AS INFLATION AND CHERRYPICKING BY COMMERCIAL COMPETITORS BUT STAFFERS OF THE SENATE INVESTIGATIONS SUBCOMMITTEE DETERMINED THAT MOST OF THE COMPANY'S PROBLEMS HAVE RESULTED FROM INTERNAL PROBLEMS CHERRYPICKING REFERS TO THE PRACTICE IN WHICH COMMERCIAL INSURERS TAKE ON THE HEALTHIEST SUBSCRIBERS AND LEAVE THE HIGHESTRISK CUSTOMERS FOR NONPROFIT AGENCIES THE SUBCOMMITTEE HEARD TESTIMONY BY INVESTIGATORS AND FORMER COMPANY EMPLOYEES ALLEGING IMPROPER BOOKKEEPING BY EMPIRE AND QUESTIONABLE EXPENDITURES BY TOP EXECUTIVES FORMER EMPIRE VICE PRESIDENT JOAN BOYLE DESCRIBED HER DISCOVERY OF A BLACK BOOK THAT CONTAINED ACCOUNT FIGURES DIFFERENT FROM THOSE PREPARED BY EMPIRE'S ACTUARIAL DEPARTMENT SHE TESTIFIED THAT ANOTHER EMPIRE EMPLOYEE WILLIAM FUESSLER ALERTED HER TO THE SECOND SET OF NUMBERS IN FEBRUARY 1992 ACCORDING TO A MEMO MS BOYLE MADE FOR HER OWN RECORDS AT THE TIME ALTHOUGH THE OVERALL TOTALS FROM BOTH SETS OF NUMBERS SQUARED LOSSES HAD BEEN SHIFTED TO THE COMMUNITYRATED ACCOUNTS FOR WHICH PREMIUMS ARE SET BY THE STATE GOVERNMENT FROM THE EXPERIENCERATED ACCOUNTS FOR WHICH PREMIUMS ARE BASED ON RISK BY LAW EMPIRE IS REQUIRED TO BE THE INSURER OF LAST RESORT FOR SUBSCRIBERS WHO CAN'T AFFORD INSURANCE FROM A COMMERCIAL AGENCY TO OVERSTATE COMMUNITYRELATED LOSSES COULD BE VALUABLE IF YOU WANTED RATE INCREASES MS BOYLE SAID WHEN ASKED TO SPECULATE ON THE MOTIVATION BEHIND THE ACCOUNT DISCREPANCIES IN A WRITTEN STATEMENT PRESENTED TO THE COMMITTEE EMPIRE'S ACTING CHIEF EXECUTIVE OFFICER DONALD MORCHOWER SAID THAT MAKING INCORRECT REPORTS TO THE NEW YORK STATE DEPARTMENT OF INSURANCE HAS RAISED SERIOUS PROBLEMS OF CREDIBILITY FOR EMPIRE EMPIRE HAS HIRED FORMER US ATTORNEY OTTO OBERMAIER TO INVESTIGATE THESE AFFAIRS IN A WRITTEN STATEMENT TO THE COMMITTEE MR MORCHOWER SAID OUR CAPITAL THAT IS SURPLUS HAS RISEN TO OVER 200 MILLION UP FROM 40 MILLION AT YEAR END 1992 MUCH OF THIS INCREASE STEMS FROM THE RECENT SETTLEMENT OF A 935 MILLION LAWSUIT HOWEVER THIS AMOUNT IS STILL BELOW THE RESERVE AMOUNTS REQUIRED UNDER NEW YORK LAW IN MAY 1991 THE NEW YORK STATE DEPARTMENT OF INSURANCE ALLOWED EMPIRE TO REDUCE ITS RESERVES TO 246 MILLION 50 OF THE NORMALLY MANDATED AMOUNT BUT EMPIRE PROCEEDED TO HOLD RESERVES BELOW THIS NEW MINIMUM IT WILL TAKE EMPIRE AT LEAST FIVE YEARS TO CATCH UP TO THE RESERVE AMOUNTS REQUIRED OF OTHER INSURERS THE STAFF REPORT SAID STAFF INVESTIGATORS ALSO REPORTED THAT EMPIRE'S SPENDING ON PERKS OFTEN SEEMED MORE AKIN TO A FORTUNE 500 COMPANY THAN TO A NONPROFIT ONE AT A TIME WHEN PREMIUM RATES WERE SKYROCKETING CORPORATE ACCOUNTS AT CARTIER AND TIFFANY WERE ESTABLISHED TO PROVIDE GIFTS FOR RETIREES AND INCENTIVES FOR CURRENT EMPLOYEES CLAIMING HE HAD RECIEVED DEATH THREATS FORMER EMPIRE CEO ALBERT CARDONE CHARGED TO EMPIRE THE INSTALLATION OF A 17000 SECURITY SYSTEM IN HIS HOME THE REPORT SAID AT A PRESS CONFERENCE LATER IN THE DAY NEW EMPIRE CHAIRMAN HAROLD VOGT COMPLAINED THAT THE HEARING HAD PRESENTED A ONESIDED PICTURE OF THE PROBLEMS AT EMPIRE ACKNOWLEDGING THAT THERE HAVE BEEN SERIOUS PROBLEMS AT EMPIRE MR VOGT WAS OPTIMISTIC THAT SPLITTING THE POSITION OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN TWO WOULD IMPROVE THE COMPANY'S PERFORMANCE THE COMMITTEE WILL HEAR TESTIMONY FROM MR CARDONE AND OTHER TOP OFFICIALS ON WEDNESDAY 9306280154 930628 NUI PLANS P&S GAS ACQUISITION BEDMINSTER NY NUI CORP A PUBLIC UTILITY HOLDING COMPANY SAID IT SIGNED A LETTER OF INTENT TO ACQUIRE PENNSYLVANIA & SOUTHERN GAS CO FOR 17 MILLION OR 7150 A SHARE PENNSYLVANIA & SOUTHERN WHICH SERVES 22000 PEOPLE IN NORTH CAROLINA PENNSYLVANIA NEW YORK AND MARYLAND HAD NET INCOME OF 457000 ON REVENUE OF 276 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 1992 NUI'S NET FOR THE SAME PERIOD WAS 118 MILLION ON 291 MILLION IN REVENUE THE MERGER IS SUBJECT TO THE EXECUTION OF A DEFINITIVE AGREEMENT AND TO APPROVAL BY SHAREHOLDERS AND REGULATORY AGENCIES 9306280153 930628 DIVIDEND NEWS HORIZON BANK HORIZON BANK BELLINGHAM WASH SAID ITS DIRECTORS DECLARED A QUARTERLY DIVIDEND OF EIGHT CENTS A COMMON SHARE PAYABLE JULY 30 TO SHARES OF RECORD JULY 9 THE COMPANY PAID A 15 STOCK DIVIDEND ON MAY 25 9306280152 930628 WHO'S NEWS BROADWAY & SEYMOUR INC BROADWAY & SEYMOUR INC CHARLOTTE NC WILLIAM G SEYMOUR 51YEAROLD SENIOR VICE PRESIDENT WAS NAMED VICE CHAIRMAN A NEW POST AT THIS SOFTWARE DEVELOPMENT AND SERVICE CONCERN THE COMPANY ALSO NAMED TWO NEW DIRECTORS EXPANDING THE BOARD TO SEVEN MEMBERS THEY ARE GEORGE L MCTAVISH 53 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF COMDATA HOLDINGS CORP AND PAUL R M DEMMINK 37 THE COMPANY'S EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER 9306280151 930628 WHO'S NEWS CYTOTHERAPEUTICS INC CYTOTHERAPEUTICS INC PROVIDENCE RI DANIEL E GEFFKEN WAS NAMED CHIEF FINANCIAL OFFICER OF THIS BIOTECHNOLOGY CONCERN MR GEFFKEN FORMERLY VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF ANDERSEN GROUP INC A BLOOMFIELD CONN HOLDING COMPANY ASSUMES THE POST FROM THOMAS G WIGGANS WHO CONTINUES AS PRESIDENT AND CHIEF OPERATING OFFICER 9306280150 930628 WHO'S NEWS DAVIS WATER & WASTE INDUSTRIES INC DAVIS WATER & WASTE INDUSTRIES INC THOMASVILLE GA R DOYLE WHITE 62 YEARS OLD WAS NAMED CHAIRMAN OF THIS WATER AND WASTE TREATMENT COMPANY MR WHITE PRESIDENT CHIEF EXECUTIVE OFFICER AND CHIEF OPERATING OFFICER OF THE COMPANY SUCCEEDS JASPER C DAVIS 72 WHO REMAINS A BOARD MEMBER MR DAVIS WHO SERVED AS CHIEF EXECUTIVE FOR 30 YEARS HAS BEEN CHAIRMAN SINCE 1956 9306280149 930628 JWP FRENCH UNIT FILES PETITION RYE BROOK N Y JWP INC SAID ITS FRENCH COMPUTER RESELLING UNIT FILED A PETITION IN THE PARIS COMMERCIAL COURT SEEKING RELIEF FROM ITS CREDITORS JWP A MECHANICAL AND ELECTRICAL CONSTRUCTION AND MAINTENANCE SERVICES CONCERN SAID THE FINANCIAL IMPACT FROM THE JWP INFORMATION SYSTEMS SARL UNIT'S FILING WILL BE COVERED BY PREVIOUSLY TAKEN LOSS PROVISIONS JWP SAID IT HAD INTENDED TO SELL THE FRENCH UNIT WHICH HAD ABOUT 100 MILLION IN REVENUE IN 1992 A HEARING ON THE UNIT'S PETITION IS SCHEDULED FOR JULY 1 9306280148 930628 BUSINESS BRIEF BALL CORP SECONDQUARTER INCOME SAID TO FALL SHORT OF PREVIOUS NET BALL CORP MUNCIE IND SAID ITS EARNINGS FOR THE SECOND QUARTER ENDING JULY 4 WILL BE BELOW YEAREARLIER RESULTS IN THE 1992 QUARTER NET INCOME WAS 20 MILLION OR 72 CENTS SHARE INCLUDING A 3 MILLION CHARGE TO CONSOLIDATE CERTAIN OPERATIONS THE MAKER OF METAL AND GLASS CONTAINERS AND PROVIDER OF AEROSPACE SYSTEMS ALSO SAID IT IS PROBABLE THAT EARNINGS FOR THE YEAR WILL FALL BELOW THE 221 A SHARE REPORTED IN 1992 BALL SAID MUCH OF THE DECREASE IS BECAUSE OF DISAPPOINTING RESULTS AT ITS GLASSCONTAINER MANUFACTURNG SUBSIDIARY BALLINCON YEARTODATE VOLUME GROWTH BALL SAID HAS BEEN LIMITED PRIMARILY TO THE SINGLESERVICE CATEGORY WHILE SOME SOFTNESS HAS BEEN EXPERIENCED IN THE FOODMARKET SEGMENTS SERVED BY BALLINCON THE COMPANY SAID IT EXPECTS IMPROVED PERFORMANCE IN ITS GLASS BUSINESS IN THE SECOND HALF OF THE YEAR REFLECTING HIGHER OPERATING EFFICIENCIES AT ITS NEWLY EXPANDED RUSTON LA PLANT AND OTHER PLANTS PLUS THE EFFECTS OF A PRICE INCREASE 9306280147 930628 WHO'S NEWS DOW CORNING CORP DOW CORNING CORP MIDLAND MICH RICHARD A HAZLETON 50YEAROLD PRESIDENT WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS JOINT VENTURE OF DOW CHEMICAL CO AND CORNING CORP SUCCEEDING KEITH R MCKENNON 59 WHO CONTINUES AS CHAIRMAN MESSRS HAZLETON AND MCKENNON AND GARY E ANDERSON 47 EXECUTIVE VICE PRESIDENT WILL CONTINUE TO FORM THE OFFICE OF THE CHIEF EXECUTIVE 9306280146 930628 INTERNATIONAL WASHINGTON INSIGHT ADMINISTRATION HAGGLES OVER 4 MILLION AMID RISE IN AVERSION TO FOREIGN AID BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US HAS PLEDGED MORE THAN 2 BILLION IN AID TO RUSSIA BUT IT'S HOGTIED OVER A RELATIVELY SMALL 4 MILLION IN DEBTRELIEF FOR SOME OF THE WORLD'S POOREST NATIONS THE CLINTON ADMINISTRATION HAS PROPOSED WRITING OFF 50 OF THE DEBTS OWED THE US BY 18 NATIONS MOSTLY IN SUBSAHARAN AFRICA BUT UNDER FEDERAL ACCOUNTING RULES A SMALL PORTION OF THE WRITEOFF MUST BE RECORDED IN THE BUDGET AS AN OUTLAY THEREIN LIES THE PROBLEM UNDER MR CLINTON'S PLAN WRITING OFF THE DEBT MUCH OF WHICH IS UNCOLLECTIBLE WOULD ADD ABOUT 7 MILLION TO BUDGET SPENDING THE ADMINISTRATION IS RESISTING AN EFFORT BY SOME MEMBERS OF CONGRESS TO PROVIDE GREATER DEBT RELIEF THAT WOULD COST US TAXPAYERS ABOUT 11 MILLION THE QUIBBLING OVER A 4 MILLION DIFFERENCE A SUM THE PENTAGON SPENDS IN LESS THAN A HALFHOUR IS SYMPTOMATIC OF THE STRAITJACKET THE US FINDS ITSELF IN AS IT ATTEMPTS TO CONDUCT FOREIGN POLICY IN THE POSTCOLD WAR WORLD WITH THE FOCUS ON DOMESTIC PRIORITIES AND MOUNTING PUBLIC ANTIPATHY TOWARD FOREIGN AID NEITHER THE ADMINISTRATION NOR CONGRESS IS WILLING TO SPEND EVEN THIS RELATIVELY PUNY SUM FOR WHAT MOST AGREE IS A WORTHWHILE EFFORT WE'RE IN A VERY VERY STRANGE POLITICAL CLIMATE SAYS REP MAXINE WATERS THE CALIFORNIA DEMOCRAT WHO PROPOSED INCREASING THE PORTION OF AFRICAN DEBT THAT WOULD BE WRITTEN OFF TO TWOTHIRDS FROM 50 IT'S A TIME WHEN EVERYBODY IS TRYING TO DEVELOP A PROFILE FOR REDUCING THE FEDERAL DEFICIT REP WATERS AND OTHER SUPPORTERS OF GREATER DEBT RELIEF AREN'T CRITICIZING MR CLINTON THEY APPLAUD HIS EFFORT TO FORGIVE SOME DEBT HE'S TRYING TO DO MORE THAN THE BUSH ADMINISTRATION WAS WILLING TO DO THEY SAY BUT SOME LAWMAKERS WORRY THAT WASHINGTON'S RELUCTANCE TO EXPAND THE DEBTRELIEF PROGRAM WILL PROVE TO BE EMBARRASSING US OFFICIALS SAY THE ISSUE OF DEBT RELIEF FOR THE POOREST NATIONS WILL BE ON THE AGENDA OF NEXT WEEK'S ECONOMIC SUMMIT IN TOKYO BY PEGGING ITS OFFER OF DEBT FORGIVENESS AT 50 THE ADMINISTRATION IS TRAILING MANY OF ITS ALLIES BRITAIN FOR INSTANCE IS PRESSING A PLAN TO FORGIVE TWOTHIRDS OF THE DEBT OF THE POOREST NATIONS WHAT WE'RE TALKING ABOUT IS MORE SYMBOLIC THAN IT IS FINANCIAL SAYS REP HARRY JOHNSTON A FLORIDA DEMOCRAT AND CHAIRMAN OF THE HOUSE FOREIGN AFFAIRS SUBCOMITTEE ON AFRICA BUT IT WOULD SEND A MESSAGE TO SUBSAHARAN AFRICA THAT WE'RE TRYING TO DO THE MOST WE CAN US TREASURY OFFICIALS SAY THE PRESIDENT'S PLAN WOULD FORGIVE OVER THE NEXT TWO YEARS ABOUT 228 MILLION OR HALF THE DEBTS TO THE US FROM THE 18 NATIONS THIS WOULD INCLUDE ONLY LOANS MADE TO THESE GOVERNMENTS AT MARKET INTEREST RATES THE TREASURY OFFICIALS SAY THAT IF OTHER INDUSTRIALIZED NATIONS OFFER SIMILAR RELIEF ABOUT 8 BILLION OWED BY THE POOREST NATIONS WOULD BE ELIMINATED MOST OF THE DEBT WAS INCURRED DURING THE 1970S WHEN THESE AFRICAN NATIONS BORROWED PLENTIFUL PETRODOLLARS AND INVESTED UNWISELY IN MASSIVE PROJECTS OFTEN MORE FOR PRESTIGE SUCH AS TO BUILD NATIONAL AIRLINES THAN FOR SOUND FINANCIAL REASONS AT THE END OF THE DECADE A PRICE PLUNGE FOR COMMODITIES WHICH PROVIDED MOST FOREIGNEXCHANGE EARNINGS FOR MANY OF THESE NATIONS WRECKED THEIR ABILITY TO REPAY THE DEBT ACCORDING TO A TREASURY OFFICIAL SUBSAHARAN NATIONS OWE A TOTAL OF 156 BILLION IN MEDIUM AND LONGTERM DEBT AN AMOUNT THAT KEEPS INCREASING AS UNPAID INTEREST PILES UP AFRICAN NATIONS NOW MEET ONLY ABOUT HALF THEIR DEBT OBLIGATIONS AND SOME NATIONS SPEND CONSIDERABLY MORE ON INTEREST PAYMENTS THAN ON HEALTH SERVICES WITHOUT DEBT FORGIVENESS MANY OF THESE NATIONS ARE TRAPPED IN A VICIOUS CYCLE EVEN AS THEY ATTEMPT TO REFORM THEIR ECONOMIES I DON'T THINK ANYBODY IN THEIR RIGHT MIND WOULD INVEST IN A COUNTRY THAT HAS HUGE ARREARS SAYS ULRICH THUMM A WORLD BANK ECONOMIST WHO SPECIALIZES IN AFRICA US OFFICIALS HOPE THAT DEBT FORGIVENESS CAN BE EXPANDED IN FUTURE YEARS THE SENSE HERE IS THIS IS A FIRST STEP SAYS A TREASURY OFFICIAL IF THE ADMINISTRATION HAD MORE FUNDING I THINK WE'D BE MORE INTERESTED IN DOING MORE BUT THE KEY QUESTION REMAINS THE FUNDING QUESTION THE FACT THAT WE'VE HELD ON TO THE 7 MILLION IN AN ERA OF BUDGET CUTS IS AN INDICATION OF OUR STRONG SUPPORT FOR THIS 9306280145 930628 BAD CHEMISTRY POPULISM PROFIT SLIDE FORCED BRYSON OUT AS CEO OF ELI LILLY CHAIRMAN URGED THE FIRING OF SUCCESSOR HE PICKED QUARTERLY LOSS A FACTOR EMPLOYEES TAKE TO THE STREET BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL MINUTES AFTER A SHARPLY DIVIDED ELI LILLY & CO BOARD FIRED CHIEF EXECUTIVE OFFICER VAUGHN D BRYSON ON FRIDAY A STARTLING SIGHT OCCURRED OUTSIDE THE PHARMACEUTICAL GIANT'S INDIANAPOLIS HEADQUARTERS HUNDREDS OF LABORATORY AND OFFICE WORKERS SOME CRYING STREAMED ONTO A BRICKPAVED QUADRANGLE TO PROTEST THE OUSTER OF THEIR POPULAR BOSS STANDING IN A DRIZZLE THEY APPLAUDED MR BRYSON FOR 20 MINUTES FIRE THE BOARD NOT BRYSON SEVERAL CHANTED ONLY AFTER MR BRYSON THEIR BOSS OF 20 MONTHS CAME DOWN FROM HIS 12THFLOOR OFFICE AND URGED THEM TO GIVE A CHANCE TO HIS SUCCESSOR AN OUTSIDE LILLY DIRECTOR AND AMERICAN TELEPHONE & TELEGRAPH CO VICE CHAIRMAN DID THE DEMONSTRATION END THE AFTERMATH OF FRIDAY'S SHOCKS MAY TAKE MONTHS TO OVERCOME HOWEVER THOUGH THE DISMISSAL OF THE 55YEAROLD CAREER LILLY EMPLOYEE WAS ABRUPT IT HAD BEEN URGED FOR WEEKS BY THE MAN WHO ONCE TAPPED HIM AS HIS SUCCESSOR LILLY CHAIRMAN RICHARD D WOOD DESPITE MR BRYSON'S POPULARITY THE 66YEAROLD MR WOOD HAD SOME SUBSTANTIAL FACTORS IN HIS FAVOR UNDER MR BRYSON WHO ALSO SERVED AS PRESIDENT LILLY POSTED ITS FIRSTEVER QUARTERLY LOSS IN LAST YEAR'S THIRD QUARTER AND A 100 MILLION INVESTMENT IN CENTOCOR INC A MALVERN PA BIOTECHNOLOGY COMPANY HAS PROVED A WEAK INVESTMENT SO FAR WITH THE COMPANY TAKING A 46 MILLION CHARGE ON THE DEAL LILLY'S STOCK ALSO HAS SLUMPED FROM THE HIGH 80S IN EARLY 1992 TO THE HIGH 40S AND IT HAS LANGUISHED THERE IT CLOSED FRIDAY IN BIG BOARD TRADING AT 5125 A SHARE UP 1875 WITH MUCH OF THE ADVANCE COMING AFTER THE ANNOUNCEMENT BUT OTHER RECENT TROUBLES SUCH AS A WEAK NEARTERM NEWPRODUCT PIPELINE AND LACKLUSTER PERFORMANCE IN ITS MEDICALDEVICE SUBSIDIARIES HAD BEEN BUILDING FOR YEARS IN RECENT MONTHS SAY LILLY EXECUTIVES AND DIRECTORS THE RESERVED AND ALOOF MR WOOD WHO RELINQUISHED HIS CEO TITLE TO MR BRYSON IN NOVEMBER 1991 ALSO BEGAN TO OBJECT TO MR BRYSON'S MANAGEMENT STYLE UNDER MR BRYSON'S APPROACH CONSIDERED MORE COLLEGIAL THAN MR WOOD'S METHODS JUNIOR MANAGERS BEGAN MAKING PRESENTATIONS BEFORE THE COMPANY'S EXECUTIVE COMMITTEE AND SUBORDINATES WERE URGED TO CREATIVELY CHALLENGE THEIR BOSSES MR BRYSON ALLOWED ANY OF LILLY'S 32000 EMPLOYEES TO COMMUNICATE DIRECTLY WITH HIM BY ELECTRONIC MAIL AND ANSWERED ALL OF THESE COMMUNICATIONS ASSOCIATES SAY FOR WEEKS MR WOOD TOLD FELLOW DIRECTORS MOST OF WHOM HE HAD PICKED THAT A NEW CEO WAS NEEDED MR BRYSON DIDN'T GET WIND THAT HIS JOB WAS IN JEOPARDY UNTIL HE RETURNED IN MIDMAY FROM A VACATION IN FRANCE HE USED THE ENSUING WEEKS TO DEFEND HIS TENURE TO LILLY'S EIGHT OUTSIDE DIRECTORS AND AS LATE AS LAST MONDAY HE HAD WORKED OUT AN ARRANGEMENT TO STAY BUT MR WOOD'S MANEUVERING CONTINUED COMING TO A HEAD AT LUNCHTIME FRIDAY WITH A SUDDENNESS ESPECIALLY JOLTING FOR LILLY WHERE VIRTUALLY NOBODY GETS FIRED IN AN 8TO4 VOTE WITH TWO ABSTENTIONS THE BOARD SIDED WITH MR WOOD NAMED TO SUCCEED MR BRYSON WAS RANDALL L TOBIAS 51 THE AT&T VICE CHAIRMAN WHO HAS BEEN A LILLY BOARD MEMBER SINCE 1986 HE ALSO WAS NAMED LILLY'S CHAIRMAN MR WOOD STEPPED DOWN BUT BOTH HE AND MR BRYSON IN AN UNUSUAL MOVE WILL REMAIN DIRECTORS MR WOOD DECLINED TO COMMENT SO DID MR BRYSON WHO STILL IS NEGOTIATING A SEVERANCE PACKAGE MR TOBIAS IS A HIGHLY REGARDED TELECOMMUNICATIONS EXECUTIVE WHO ALSO WAS CHIEF EXECUTIVE OF AT&T INTERNATIONAL AND RECENTLY NEGOTIATED A MAJOR SUPPLY AND RESEARCH CONTRACT WITH THE GOVERNMENT OF CHINA HE HAS SERVED AS CHIEF OF AT&T'S LONGDISTANCE BUSINESS AND WAS SEEN AS A RISING STAR THERE UNTIL HIS MENTOR JAMES OLSON DIED SUDDENLY IN 1988 HE DOESN'T HAVE ANY EXPERIENCE IN RUNNING A PHARMACEUTICAL CONCERN NOR HAS HE RUN ANY OF AT&T'S OPERATING COMPANIES FOR AT LEAST FIVE YEARS FACTORS THAT COULD COMPLICATE THE SITUATION HE INHERITS AT LILLY HE'S HAD A NONJOB AT AT&T FOR SEVERAL YEARS SAYS RONALD NORDMANN A PAINEWEBBER HEALTHCARE ANALYST THIS IS A VERY STRANGE CHOICE FOR THE CHAIRMANSHIP OF LILLY MR TOBIAS SAYS HE IS WELL AWARE OF THE DEEP RANCOR FOLLOWING FRIDAY'S FIRING I KNOW PEOPLE AT LILLY FEEL VERY BADLY ABOUT WHAT HAPPENED HE SAYS AND I DO TOO ALL OF THIS UNPLEASANTNESS IS AS ONE SENIOR EXECUTIVE PUTS IT VERY UNLILLYLIKE IN AN ERA OF BOARDROOM COUPS PUBLIC FIRINGS AND MASS LAYOFFS LILLY HAD BEEN A THROWBACK TO A GENTLER TIME WHEN LONGTERM LOYALTY BETWEEN A COMPANY AND ITS EMPLOYEES HELD SWAY FOUNDED IN 1876 BY CHEMIST ELI LILLY THE CONCERN HAD A LILLY FAMILY MEMBER IN ONE SENIOR POSITION OR ANOTHER UNTIL MR WOOD TOOK OVER ALL TOP POSTS IN 1973 WHEN MR WOOD ASSUMED ALL THREE TOP POSTS MANY AT LILLY CRITICIZED HIS APPOINTMENT AFTER ALL THEY NOTED MR WOOD HAD BEEN WITH THE COMPANY ONLY 23 YEARS LILLY HAS CONSISTENTLY BEEN METHODICAL MUCH SLOWER THAN OTHER US DRUG MAKERS TO PURSUE OVERSEAS SALES OR BUSINESS WITH MANAGEDCARE GROUPS LIKE HEALTHMAINTENANCE ORGANIZATIONS LILLY'S POLITICS HAVE GENERALLY BEEN CONSERVATIVE TOO WITH GEORGE BUSH SERVING ON ITS BOARD IN THE 1970S AND ONETIME REAGAN WHITE HOUSE AIDE MITCHELL E DANIELS JR NOW SERVING AS PRESIDENT OF NORTH AMERICAN PHARMACEUTICAL OPERATIONS THIS CAUTIOUS STYLE SERVED THE COMPANY WELL FOR YEARS IN A 10THFLOOR WINDOW AN ARROW POINTING UP OR DOWN TO REFLECT THAT DAY'S STOCK TRADING USUALLY AIMED UP LILLY RODE PRODUCT SUCCESSES LIKE THE PAINKILLER DARVON AND ANTIBIOTICS KEFLEX AND CECLOR TO THE TOP TIER OF THE PHARMACEUTICAL INDUSTRY WITH 62 BILLION IN 1992 SALES MR WOOD WHO PRESIDED OVER MUCH OF THIS SUCCESS DURING HIS LEADERSHIP OF LILLY ALSO BECAME A DIRECTOR OF OIL BANKING AND INSURANCE COMPANIES AS WELL AS OF DOW JONES & CO PUBLISHER OF THIS NEWSPAPER BUT MR WOOD'S DETACHED PERSONAL STYLE IRKED SOME WITHIN LILLY AND ON WALL STREET ONE OF THE COMPANY'S LARGEST INDIVIDUAL SHAREHOLDERS TELLS OF SEEKING A MEETING WITH HIM AND GETTING A GRUDGING 10 MINUTES IT WAS TOUGHER THAN TRYING TO SEE THE POPE HE SAYS REPRESENTATIVES OF BIG INSTITUTIONAL INVESTORS LIKE BANKS AND PENSION FUNDS WERE PUT OFF WHEN MR WOOD DIDN'T CHAT WITH THEM WHEN THEY WERE IN THE LILLY EXECUTIVE DINING ROOM A COLLEAGUE AT LILLY DESCRIBES MR WOOD SIMPLY AS SHY UNCOMFORTABLE AROUND PEOPLE AND A MAN WHO NEVER RELISHED SUCH CHORES AS GIVING SPEECHES MR BRYSON A FOLKSIER LEADER GIVEN TO SHIRTSLEEVES AND DROPBY VISITS TO JUNIOR MANAGERS TO SAMPLE THEIR IDEAS HAD WORKED CLOSELY WITH MR WOOD FOR THE BETTER PART OF HIS CAREER A NORTH CAROLINIAN UNLIKE THE REST OF THE MOSTLY INDIANABORN LILLY EXECUTIVE CORPS MR BRYSON JOINED LILLY IN 1961 AFTER WORKING IN A DRUGSTORE MR TOBIAS IS AN INDIANA NATIVE AND A GRADUATE OF INDIANA UNIVERSITY BY THE TIME MR BRYSON BECAME CHIEF EXECUTIVE IN LATE 1991 THE SEEDS OF LILLY'S FINANCIAL TROUBLES HAD ALREADY BEEN SOWN FOR ONE THING THE PIPELINE DOESN'T CONTAIN MUCH TO SUCCEED THE 1 BILLIONAYEAR ANTIBIOTIC CECLOR WHICH LOST PARTIAL PATENT PROTECTION LAST YEAR AND LOSES THE REST IN 1994 LORABID A NEW ANTIBIOTIC DESIGNED TO REPLACE CECLOR'S SALES WAS INTRODUCED TO CONSIDERABLE FANFARE LAST YEAR WITH BALLOONS FESTOONING LILLY'S HEADQUARTERS BUT SOME OF THE AIR HAS GONE OUT OF LORABID AS SALES HAVE BEEN DISAPPOINTING PART OF ITS PROBLEM WAS A COMPETITIVE FIELD OF NEW ANTIBIOTIC PRODUCTS SIMILARLY MANY OTHER ELEMENTS IN THE COMPANY'S RECENT DIFFICULTIES AROSE BEFORE MR BRYSON BECAME CEO A HOST OF TROUBLES FOR INSTANCE EMERGED IN LILLY'S MEDICALDEVICE OPERATING UNITS THE PLANT IN REDMOND WASH THAT MAKES EMERGENCY HEART DEFIBRILLATORS WAS CLOSED BY THE FOOD AND DRUG ADMINISTRATION IN MAY 1992 AND REOPENED ONLY RECENTLY COMPETITORS HAVE ALSO GAINED GROUND AGAINST LILLY IN THE MARKETING OF BALLOON ANGIOPLASTY DEVICES TO OPEN CORONARY ARTERIES AND AGAINST LILLY'S CARDIAC PACEMAKERS INC UNIT IN ST PAUL MINN WHICH MAKES BOTH PACEMAKERS AND CARDIAC DEFIBRILLATORS THAT ARE SURGICALLY IMPLANTED THOSE STRIDES BY COMPETITORS LIKE MEDTRONIC INC THOUGH HAVE TAKEN PLACE OVER SEVERAL YEARS ALSO THE CHURCH OF SCIENTOLOGY'S CAMPAIGN TO DISCOURAGE USE OF LILLY'S TOPSELLING ANTIDEPRESSANT DRUG PROZAC HAS HURT SALES SO TOO HAS THE FEDERAL MEDICAIDREBATE PROGRAM THAT HAS MEANT LOWER PHARMACEUTICAL REVENUE FOR MOST MAJOR DRUG MAKERS THESE EVENTS WHICH HAVE CLOBBERED LILLY EARNINGS WERE FORCES DIFFICULT FOR THE COMPANY TO CONTROL A MAJOR BRYSONERA MOVE THAT HAS BEEN CLEARLY DISAPPOINTING WAS THE 100 MILLION ACQUISITION OF A STAKE IN CENTOCOR THOUGH EXECUTIVES STILL HAVE HOPES IT WILL PAY OFF WHEN THAT CONCERN BEGINS MARKETING THE CARDIOVASCULAR DRUG CENTORX STILL MR WOOD'S CAMPAIGN TO REMOVE HIS SUCCESSOR DEALT MORE WITH THEIR CLASHING MANAGEMENT STYLES THERE NEVER WAS A BLOWUP BETWEEN THE TWO MEN JUST A SLOWLY DISINTEGRATING RELATIONSHIP ACCORDING TO LILLY EXECUTIVES AND DIRECTORS WHO SPOKE ON CONDITION OF ANONYMITY THEY SUGGESTED THAT MR WOOD CHAFED AT VARIOUS MOVES MR BRYSON INITIATED TO STRIP AWAY HIERARCHY AT THE COMPANY MR BRYSON'S MEMOS SPOKE REPEATEDLY OF CHANGING THE WAY LILLY DID BUSINESS AND MADE DECISIONS MR BRYSON AND HIS AIDES VISITED PRODUCTION LINES AND LABS AND ASKED JUNIOR EMPLOYEES TO CRITIQUE THE COMPANY HE SET UP A SERIES OF FOUR WEEKLONG RETREATS AT A CHANTILLY VA CONFERENCE CENTER FOR SOME 400 TOP LILLY MANAGERS AND BUSINESS SCHOOL PROFESSORS EARLY THIS YEAR THE THEME OF THE MEETINGS WAS THAT LILLY EXECUTIVES NEEDED TO CHANGE THEIR THINKING BE WILLING TO CHALLENGE THEIR BOSSES AND TAKE RISKS FOR THE FIRST TIME MANY EXECUTIVES SAY THEY BEGAN TO FEEL THEY HAD MORE OF A PERSONAL STAKE IN THE COMPANY BY CONTRAST DURING MR WOOD'S TENURE AS CHIEF EXECUTIVE IDEAS THAT DIFFERED WITH HIS WERE RARELY ENCOURAGED ACCORDING TO CURRENT AND FORMER LILLY EXECUTIVES MARK D MILES A FORMER SENIOR EXECUTIVE DESCRIBES LILLY UNDER MR WOOD AS SUFFERING FROM A MONOLITHIC GROUPTHINK MENTALITY MR WOOD SAYS MR MILES ABHORRED CONTROVERSY AND VIEWED DIFFERENCES OF OPINION AS THE SORT OF THING HE WOULDN'T TOLERATE LILLY EXECUTIVES SAY THAT IN MR WOOD'S EFFORT TO OUST THE CEO HE CITED THEIR DIFFERENT STYLES MR WOOD ALSO CONTENDS HE WASN'T CONSULTED ON THE APPOINTMENT OF MR DANIELS AS PRESIDENT OF NORTH AMERICAN PHARMACEUTICAL OPERATIONS SAYS ONE PERSON FAMILIAR WITH THE DETAILS MR BRYSON DISPUTES THE CONTENTION LAST WEEK THE LILLY BOARD WAVERED ON MR BRYSON'S FATE ACCORDING TO THE PERSON FAMILIAR WITH THE NEGOTIATIONS AT FIRST LAST MONDAY MR BRYSON AND OUTSIDE DIRECTORS HAD WORKED OUT A DEAL UNDER WHICH HE WOULD STAY BUT MR WOOD WOULD HAVE GREATER CONTROL THEN TUESDAY ACCORDING TO THIS ACCOUNT THE DIRECTORS RESCINDED THAT ARRANGEMENT AND WERE INSISTING AGAIN ON MR BRYSON'S DEPARTURE AT A WEDNESDAY MEETING OF DIRECTORS TWO SENIOR LILLY EXECUTIVES ON THE BOARD PHARMACEUTICAL DIVISION PRESIDENT SIDNEY TAUREL AND LILLY RESEARCH LABORATORIES PRESIDENT MEL PERELMAN ARGUED ON MR BRYSON'S BEHALF BUT THE MAJORITY OF OUTSIDE DIRECTORS BROUGHT THE VOTE TO A HEAD AGAIN FRIDAY TWO VOTES SAID TO HELP SEAL MR BRYSON'S FATE WERE THOSE OF INSIDE DIRECTORS CORPORATE AFFAIRS VICE PRESIDENT STEPHEN STITLE WHO VOTED AGAINST HIM AND CHIEF FINANCIAL OFFICER JAMES M CORNELIUS WHO ABSTAINED MR STITLE DECLINED TO COMMENT AND MR CORNELIUS DIDN'T RETURN CALLS NONE OF THOSE VOTING AGAINST MR BRYSON DISCUSSED WHY THEY DID SO AND MR TOBIAS OVER THE WEEKEND PROFESSED GREAT ADMIRATION FOR VAUGHN AND THE THINGS HE'S IMPLEMENTED IN THE LAST COUPLE OF YEARS AT LILLY MR TOBIAS WHO PLANS TO EXPAND LILLY'S INTERNATIONAL PRESENCE AND SEEK WAYS TO SPEED UP DRUG RESEARCH SAYS HE HAS NO EXPECTATIONS OF LAYOFFS AT THE COMPANY PEOPLE ARE FEARING THE WORST AND THEY SHOULD NOT BE HE ALSO EXPRESSED HOPE THAT AT SOME POINT LILLY EMPLOYEES WILL FEEL THE SAME WAY ABOUT ME AS THEY DO ABOUT VAUGHN BUT THAT'S A TALL ORDER GIVEN SOME SENIOR EXECUTIVES' IMMEDIATE REACTIONS SAID ONE THIS IS A COUNTERREVOLUTION BUT IT WON'T WORK PEOPLE IN THE COMPANY AREN'T GOING TO ROLL OVER JOHN J KELLER CONTRIBUTED TO THIS ARTICLE 9306280144 930628 ROMANIA TO ALTER PLAN FOR SELLING SHIP FIRM SPECIAL TO THE WALL STREET JOURNAL BUCHAREST ROMANIA ROMANIA IS RENEGOTIATING THE CONTROVERSIAL PARTIAL SALE OF ITS SHIPPING COMPANY TO A GREEK CONCERN IN AN APPARENT ATTEMPT TO RETAIN MORE CONTROL OVER ITS COMMERCIAL FLEET OFFICIALS AND THE MEDIA SAID THE MOVE COMES AFTER POLITICIANS AND THE MEDIA LAMBASTED THE PLANNED SALE OF A PORTION OF THE STATE SHIPPING CONCERN PETROMIN TO FORUM MARITIME SA OF GREECE IN ONE OF THE LARGEST PRIVATIZATION MOVES TO DATE IN EASTERN EUROPE ACCORDING TO TERMS MADE PUBLIC LAST WEEK BY ROMANIA'S TRANSPORT MINISTRY FORUM MARITIME AGREED TO PAY THE EQUIVALENT OF 335 MILLION FOR A 51 STAKE IN PETROMIN WHICH HAS ABOUT 100 SHIPS AND TANKERS THE GOVERNMENT HAD HOPED THE SALE WOULD BE GREETED AS A TRIUMPH OF ECONOMIC REFORMS AND A HARBINGER OF MORE PRIVATIZATION DEALS BUT CRITICS CONTENDED THAT THE COMPANY WAS GROSSLY UNDERVALUED AND THAT IT IS A NATIONAL STRATEGIC ASSET THAT SHOULD NOT HAVE BEEN EVEN PARTIALLY SOLD OFF IN HASTE TRANSPORT MINISTRY OFFICIALS SPEAKING ON CONDITION OF ANONYMITY CONFIRMED THE REPORT SAYING BOTH SIDES ARE INTERESTED IN ALTERING THE PERCENTAGES THEY SAID OFFICIALS PLANNED TO PRESENT NEW TERMS TO THE PARLIAMENT TODAY 9306280143 930628 INTERNATIONAL EUROPEAN BANK'S TURMOIL ISN'T OVER WITH ATTALI'S EXIT A WALL STREET JOURNAL NEWS ROUNDUP THE RESIGNATION OF JACQUES ATTALI THE TEMPERAMENTAL PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT HAS DEFUSED AN IMMEDIATE CRISIS OF CONFIDENCE AT THE BANK BUT THE INSTITUTION HE FOUNDED TO LEAD EASTERN EUROPE AND THE FORMER SOVIET UNION TOWARD DEMOCRACY AND MARKET ECONOMICS WILL LIKELY GO THROUGH MORE TURBULENCE IN THE WEEKS AHEAD PERHAPS MOST IMPORTANT MR ATTALI'S REORGANIZATION PLAN WHICH WOULD BRING WORLD BANK EXECUTIVE ERNEST STERN IN AS HIS DEPUTY AND COMBINE THE BANK'S MERCHANT AND DEVELOPMENT BANKING DIVISIONS IS PROBABLY DEAD SOME BANK SOURCES BELIEVE THE AUDIT REPORT DUE JULY 15 WILL FURTHER DAMAGE THE FRENCHMAN'S REPUTATION REVEALING OTHER CASES OF SLOPPY EXPENSE REPORTING BEYOND AN ALREADY DISCLOSED INSTANCE OF DOUBLEBILLING FOR A FIRSTCLASS FLIGHT TO TOKYO MR ATTALI TERMED THAT A CLERICAL ERROR AT THE LEAST THE REPORT LIKELY WILL DOCUMENT A FREESPENDING CULTURE OUT OF SYNC WITH A TAXPAYERSUPPORTED INSTITUTION CREATED WITH MORE THAN 10 BILLION FROM MORE THAN TWO DOZEN WESTERN GOVERNMENTS IN RESIGNING FRIDAY THE BANK PRESIDENT SAID I KNOW OF NO ACTION THAT I HAVE TAKEN THAT IN ANY WAY COULD BE WORTHY OF REPROACH HE SAID HIS DEPARTURE WAS NECESSITATED BY MEDIA ATTENTION WHICH WAS BEGINNING TO HAVE A DETRIMENTAL EFFECT ON THE BANK'S WORK MR ATTALI WASN'T AVAILABLE FOR INTERVIEWS OVER THE WEEKEND MR ATTALI SAID HE WILL REMAIN UNTIL THE BANK'S 57 GOVERNMENT SHAREHOLDERS CHOOSE A SUCCESSOR NAMES BEING FLOATED INCLUDE KARL OTTO POEHL FORMER HEAD OF THE BUNDESBANK ONNO RUDING FORMER DUTCH FINANCE MINISTER AND VICE CHAIRMAN OF CITICORP AND JEANCLAUDE TRICHET THE HEAD OF THE FRENCH TREASURY MR ATTALI BUILT THE BANK'S IMAGE BY INVITING JOURNALISTS ON HIS EASTERN JAUNTS WHERE THEY WERE WINED AND DINED TREATED TO LIMOUSINES AND PRIVATE JETS BY THE TIME THE BANK OPENED ITS LONDON HEADQUARTERS BUILDING IN MARCH THE CITY WAS ABUZZ WITH SNIDE REMARKS ABOUT THE BANK'S LUXURY AND INABILITY TO DO DEALS MR ATTALI LATER TOOK A PUBLIC LASHING FROM THE BANK'S SHAREHOLDERS WHOSE FINANCE MINISTERS BERATED HIM FOR APPARENT LAX BUDGET PROCEDURES AND THEIR CONTRIBUTION TO THE BANK'S SINKING REPUTATION AND US CONGRESSMEN REVIEWING FUNDING OF THE BANK FOR FISCAL 1994 DECLARED THEY WOULD SUPPORT NOTHING UNTIL MR ATTALI WAS GONE THE US CONTROLS 10 OF THE BANK'S SHARES 9306280142 930628 CANADA TO AUCTION BONDS OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY TWO BILLION CANADIAN DOLLARS US156 BILLION OF 65 BONDS DUE AUG 1 1996 PROCEEDS WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9306280141 930628 PATRICOF ACQUISITION NEW YORK PATRICOF & CO VENTURES INC SAID IT ACQUIRED A 30 STAKE IN DAKIN INC A GIFTWARE AND STUFFEDANIMALS COMPANY AS PART OF A 71 MILLION EQUITY INVESTMENT MADE BY SEVERAL PARTIES DAKIN BASED IN BURLINGAME CALIF HOLDS LICENSING RIGHTS TO THE TELEVISION CHARACTER BARNEY AND THE MOVIE JURASSIC PARK PATRICOF A VENTURE CAPITAL CONCERN THAT LED THE INVESTMENT SAID ADDITIONAL INVESTORS WERE DAKIN'S CHIEF EXECUTIVE OFFICER ROBERT G SOLOMON AND MEMBER OF THE DAKIN FAMILY DAKIN SAID THE EQUITY INFUSION WOULD ENABLE THE COMPANY TO PURSUE OTHER LICENSES AND EXPAND SALES AND ADMINISTRATIVE CAPABILITIES 9306280140 930628 REAL ESTATE BY MITCHELL PACELLE LUMBER PRICES WHICH SOARED TO RECORDS IN MARCH HAVE RETREATED TO LATE1992 LEVELS TAKING AMMUNITION FROM THE HOUSING AND TIMBER INDUSTRIES IN THEIR WAR WITH ENVIRONMENTALISTS OVER LOGGING RESTRICTIONS IN THE NORTHWEST THE COST OF FRAMING LUMBER BASED ON A COMPOSITE OF DIFFERENT SIZES MORE THAN DOUBLED TO 506 PER 1000 BOARD FEET MARCH 11 FROM 249 IN OCTOBER ACCORDING TO RANDOM LENGTHS A EUGENE ORE TIMBER PUBLICATION THAT PROMPTED THE NATIONAL ASSOCIATION OF HOME BUILDERS TO RUN ADS IN NATIONAL NEWSPAPERS BLAMING HIGHER HOUSE PRICES ON THE ENDANGERED SPECIES ACT OTHER ENVIRONMENTAL REGULATIONS POLITICAL GRIDLOCK OVER TIMBERMANAGEMENT LAWS AND AN ENDLESS STREAM OF LITIGATION BUT ENVIRONMENTAL RESTRICTIONS WERE JUST ONE OF MANY FACTORS THAT CAUSED PRICES TO JUMP ACCORDING TO DAVID EVANS ASSOCIATE EDITOR OF RANDOM LENGTHS AND OTHER LUMBER SPECIALISTS HEAVY SNOW IN THE NORTHWEST AND RAIN IN THE SOUTHEAST REDUCED OUTPUT WHILE DEMAND WAS STIMULATED BY FORECASTS OF A HOUSING MARKET RECOVERY A BUYING FRENZY ENSUED ARTIFICIALLY INFLATING PRICES BY MAY HOWEVER THE PRICE HAD PLUNGED BACK TO 302 PER 1000 BOARD FEET LAST WEEK IT WAS AT 316 THE HOME BUILDERS AND TIMBER INDUSTRY TRIED TO PULL A FAST ONE ON THE AMERICAN PUBLIC BLAMING LUMBER PRICE INCREASES ON ENVIRONMENTAL LAWS SAYS KEVIN KIRCHNER A LAWYER AT THE SIERRA CLUB LEGAL DEFENSE FUND THEY HID THE TRUTH ABOUT THE REAL CAUSES DAVID SEIDERS CHIEF ECONOMIST FOR THE HOME BUILDERS GROUP CONCEDES THAT MANY FACTORS CONTRIBUTED TO RISING PRICES BUT HE STILL SINGLES OUT ENVIRONMENTAL RESTRICTIONS SAYING THEY ARE CREATING A LONGTERM COLLISION BETWEEN SUPPLY AND DEMAND THAT WILL PUSH PRICES HIGHER SAYS MR EVANS OF RANDOM LENGTHS WHENEVER THE PRICES MOVE RAPIDLY THEY TEND TO BECOME A POLITICAL FOOTBALL THE RECESSION IN COMMERCIAL REAL ESTATE HAS RIPPLED THROUGH WESTERN EUROPE HITTING LONDON FRANKFURT MADRID AND PARIS IN SUCCESSION BUT SWEDEN HAS BEEN HIT THE HARDEST MANY COMMERCIAL PROPERTIES IN STOCKHOLM HAVE LOST HALF THEIR MARKET VALUE MOREOVER SWEDISH INSTITUTIONAL INVESTORS MADE HUGE INVESTMENTS ELSEWHERE IN EUROPE ADDING TO OVERBUILDING THAT LEFT INVESTORS IN THOSE MARKETS WITH BIG LOSSES SWEDEN IS SEEN AS THE MOST UNFORTUNATE COUNTRY IN TERMS OF TIMING SAYS MARK BENSON DIRECTOR OF INTERNATIONAL MARKETS FOR CHESTERTON INTERNATIONAL A REALESTATE ADVISORY FIRM IN LONDON THEY WENT IN TO REAL ESTATE SO STRONGLY AT THE PEAK OF THE MARKET THE PROBLEM BEGAN WITH MASSIVE COMMERCIAL DEVELOPMENT IN SWEDEN DURING THE 1980S FOR MOST OF THE DECADE SWEDISH BANKS INSURANCE COMPANIES AND PENSION FUNDS WERE PROHIBITED FROM INVESTING IN FOREIGN REAL ESTATE SO DOZENS OF BUILDINGS WENT UP AT HOME KJELL CARLSSON A REALESTATE CONSULTANT IN STOCKHOLM SAYS THE BOOM GAVE US ABOUT 30 TOO MUCH CAPACITY IN THE LATE '80S SWEDISH BANKS INSURANCE COMPANIES AND PENSION FUNDS WERE FREED TO LEND OFFSHORE SWEDISH MONEY FLOODED INTO LONDON AMSTERDAM AND OTHER CITIES JUST AS THOSE MARKETS WERE PEAKING IN BRUSSELS SWEDISH INVESTORS BOUGHT OR BUILT ABOUT 10 OF THE CITY'S CURRENT OFFICE STOCK THEN SWEDEN'S ECONOMY HIT THE SKIDS OFFICE VACANCY RATES JUMPED TO NEARLY 12 TODAY FROM ABOUT 2 IN 1990 AND RENTS FELL MORE THAN 30 THE FOREIGN MARKETS CRASHED TOO SWEDISH INSTITUTIONS ARE NOW SITTING ON AS MUCH BAD REALESTATE DEBT AS THEIR FAR LARGER COUNTERPARTS IN ENGLAND SAYS MR BENSON THE SWEDISH GOVERNMENT HAS TAKEN OVER TWO OF THE NATION'S FIVE LARGEST BANKS AND IS WORKING ON A SWEDISH VERSION OF THE RESOLUTION TRUST CORP AN INCREASE IN APARTMENT VACANCY RATES IN THE US HAS TAKEN THE INDUSTRY BY SURPRISE THE VACANCY RATE IN BUILDINGS WITH FIVE OR MORE APARTMENTS JUMPED TO 107 IN THE FIRST QUARTER FROM 97 IN LAST YEAR'S FOURTH QUARTER THE WEST'S VACANCY RATE JUMPED TWO PERCENTAGE POINTS THE NORTHEAST'S 13 POINTS THE CENSUS BUREAU SAYS THE APARTMENT MARKET HAS BEEN CONSIDERED THE HEALTHIEST SECTOR OF COMMERCIAL REAL ESTATE BECAUSE HOUSEHOLDS HAVE BEEN FORMING FAR FASTER THAN APARTMENTS HAVE BEEN BUILT IN RECENT YEARS THE VACANCY RATE HAD FALLEN TO 97 IN THE FOURTH QUARTER FROM 107 IN THE 1991 THIRD QUARTER THE TREND WAS DEFINITELY DOWNWARD SAYS JONATHAN KEMPNER PRESIDENT OF THE NATIONAL MULTI HOUSING COUNCIL A TRADE GROUP IN WASHINGTON I WAS QUITE SURPRISED THAT IT ROSE THAT MUCH INDUSTRY EXPERTS SAY LOW MORTGAGE RATES ARE DRAWING MANY APARTMENT DWELLERS TO HOMEOWNERSHIP AND ECONOMIC WEAKNESS IN CALIFORNIA AND THE NORTHEAST IS CAUSING DISCRETIONARY RENTERS TO DOUBLE UP OR MOVE BACK IN WITH THEIR PARENTS ANOTHER FACTOR SAYS TODD ZIMMERMAN A HOUSING ANALYST IN CLINTON NJ IS A MISMATCH BETWEEN THE APARTMENT STOCK AND RENTERS' NEEDS WITH MORE BABY BOOMERS HAVING FAMILIES HE SAYS THERE ARE TOO MANY STUDIO AND ONEBEDROOM APARTMENTS AND NOT ENOUGH TWO AND THREEBEDROOM UNITS THIS REINFORCES THE MOVE TOWARD OWNERSHIP HE SAYS BUT MANY APARTMENT OWNERS SAY VACANCY RATES WILL CONTINUE THEIR LONGTERM DECLINE PARTICULARLY IN HIGHERQUALITY UNITS WHICH TEND TO BE BIGGER AND MORE SUITED TO FAMILIES JAPANESE DEVELOPER MINORU ISUTANI'S SALE OF THE PEBBLE BEACH GOLF RESORT FOR 500 MILLION IN MARCH 1992 WAS MORE THAN FIVE TIMES THE SIZE OF LAST YEAR'S NEXT LARGEST HOTEL SALE THE WAIKIKI BEACHCOMBER ACCORDING TO HOSPITALITY VALUATION SERVICES CORCORAN GROUP A NEW YORK BROKERAGE FIRM HAS OPENED WHAT IT BILLS AS THE FIRST RESIDENTIAL REALESTATE STORE APARTMENT HUNTERS CAN BROWSE FOR PROPERTY ON THEIR OWN USING VIDEO MONITORS AND A STORE COMPUTER THAT CARRIES MORE THAN 6000 LISTINGS 9306280139 930628 PENNSYLVANIA GAS RATE INCREASE WILKESBARRE PA PENNSYLVANIA GAS & WATER CO SAID IT RECEIVED A 4970000 ANNUAL RATE INCREASE FOR ITS LACKAWANNA COUNTY WATER UTILITY BUSINESS WELL BELOW ITS ORIGINAL 99 MILLION REQUEST REGULATORS SAID THE ENTIRE INCREASE HAD TO GO TOWARD IMPROVING THE COMPANY'S DISTRIBUTION SYSTEM PENNSYLVANIA GAS & WATER A UTILITY UNIT OF PENNSYLVANIA ENTERPRISES INC EXPRESSED SURPRISE AT THE CONDITION PLACED ON THE RATE INCREASE SAYING IT ALREADY SPENT A SIGNIFICANT AMOUNT OF MONEY PURSUING WATER DISTRIBUTION SYSTEM IMPROVEMENTS TYPICAL RESIDENTS WILL SEE THEIR RATE INCREASE 13 TO ABOUT 3160 A MONTH FROM ABOUT 28 ACCORDING TO THE COMPANY 9306280138 930628 TECHNOLOGY APPLE IN EDUCATION MARKET CUPERTINO CALIF APPLE COMPUTER INC SAID IT PLANS TO INTRODUCE TODAY ITS NEWEST APPLE MACINTOSH THE LC 520 WITH A BUILTIN CDROM STEREO SOUND AND COLOR MONITOR AT 1509 TO TEACHERS AND STUDENTS PREVIOUS SYSTEMS WITH COMPARABLE FEATURES IN THE LC LINE WERE AROUND 2400 BUT THOSE MACHINES WERE SOLD IN THE COMMERCIAL MARKET IN THE US THE LC 520 WILL BE AVAILABLE ONLY TO EDUCATIONAL INSTITUTIONS 9306280137 930628 WHO'S NEWS BCE INC BCE INC MONTREAL BCE MOBILE COMMUNICATIONS INC SAID JOHN T MCLENNAN WILL RESIGN AS PRESIDENT AND CHIEF EXECUTIVE TO BECOME PRESIDENT OF BELL CANADA'S BELL ONTARIO DIVISION EFFECTIVE SEPT 4 BCE MOBILE AND BELL CANADA ARE UNITS OF BCE INC A TELECOMMUNICATIONS COMPANY MR MCLENNAN 48 YEARS OLD WILL REMAIN CHAIRMAN OF BCE MOBILE HIS SUCCESSOR AS PRESIDENT AND CHIEF EXECUTIVE HASN'T BEEN NAMED AT BELL ONTARIO MR MCLENNAN WILL SUCCEED CW SCOTT WHO WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF STENTOR RESOURCE CENTRE INC AN ALLIANCE OF CANADIAN REGIONAL TELEPHONE COMPANIES MR SCOTT IN TURN SUCCEEDS WB HEWAT WHO WAS NAMED TO THE NEWLY CREATED POSITION OF CHAIRMAN AND CHIEF EXECUTIVE OF BELLNORTHERN RESEARCH LTD THE RESEARCH ARM OF NORTHERN TELECOM LTD NORTHERN TELECOM IS 52OWNED BY BCE INC 9306280136 930628 WHO'S NEWS CAMDEV CORP CAMDEV CORP TORONTO THIS REAL ESTATE CONCERN FORMERLY CAMPEAU CORP NAMED TWO DIRECTORS AT THE ANNUAL MEETING SIX CURRENT DIRECTORS DIDN'T STAND FOR REELECTION AMONG THOSE ELECTED WAS MARC LALONDE 63 YEARS OLD FORMERLY CANADA'S FINANCE MINISTER NOW A PARTNER WITH LAW FIRM STIKEMAN ELLIOTT ALSO JOINING THE BOARD IS MAUREEN SABIA 52 PRESIDENT OF CONSULTING FIRM MAUREEN SABIA INTERNATIONAL AND CHAIRMAN OF CANADA'S EXPORT DEVELOPMENT CORP NOT STANDING FOR REELECTION WERE JAMES D RAYMOND ALLAN C SILBER ZEEV VERED GARY M GOODMAN GILBERT I NEWMAN AND LIONEL DODD MR GOODMAN MR NEWMAN AND MR DODD WERE ORIGINALLY APPOINTED TO CAMDEV'S BOARD AS REPRESENTATIVES OF OLYMPIA & YORK DEVELOPMENTS LTD THE CHANGES REDUCE THE BOARD'S SIZE TO FIVE MEMBERS FROM NINE CAMDEV SAID THE REDUCTION REFLECTS THE COMPANY'S SIZE 9306280135 930628 WHO'S NEWS GRANT TENSOR GEOPHYSICAL CORP GRANT TENSOR GEOPHYSICAL CORP HOUSTON GEORGE W TILLEY WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS GEOPHYSICAL SERVICES COMPANY MR TILLEY 56 YEARS OLD SUCCEEDS THE CURRENT CHAIRMAN J KELLY ELLIOTT WHO WAS ACTING CHIEF EXECUTIVE MR ELLIOTT WILL REMAIN CHAIRMAN FROM 1990 TO 1992 MR TILLEY WAS PRESIDENT AND CHIEF EXECUTIVE OF HALLIBURTON GEOPHYSICAL SERVICES A UNIT OF HALLIBURTON CO 9306280134 930628 SWISS BANKS IN 1992 DECREASED IN NUMBER BUT EARNINGS ROSE 4 SPECIAL TO THE WALL STREET JOURNAL ZURICH THE SWISS BANKING INDUSTRY SAW 23 INSTITUTIONS DISAPPEAR IN 1992 BRINGING THE TOTAL TO 569 ACCORDING TO SWISS NATIONAL BANK STATISTICS THE BULK OF THE LOSS OCCURRED AMONG SMALL REGIONAL BANKS THE REPORT SAID THE NATIONAL BANK ATTRIBUTED THE REDUCTION TO THE ONGOING RESTRUCTURING IN THE INDUSTRY IN 1991 33 INSTITUTIONS DISAPPEARED BANKS' NET PROFIT IN 1992 TOTALED 53 BILLION SWISS FRANCS 35 BILLION UP 4 FROM THE PREVIOUS YEAR BANKS ALSO SHED PERSONNEL IN 1992 ELIMINATING 2849 JOBS TO LEAVE 123642 PEOPLE EMPLOYED IN THE INDUSTRY TOTAL ASSETS ROSE 31 LAST YEAR TO 1149 TRILLION FRANCS 75788 BILLION FROM 1115 TRILLION FRANCS IN 1991 THE COUNTRY'S BIG BANKS DOMINATED HOLDING NEARLY HALF THE TOTAL ASSETS BANKS' CAPITAL RESOURCES TOTALED 914 BILLION FRANCS AT THE END OF 1992 WELL ABOVE LEGALLY PRESCRIBED CAPITAL RESOURCES OF 742 BILLION FRANCS 9306280133 930628 CORPORTE FOCUS COORS LOOKS TO LOCAL DISTRIBUTORS FOR NATIONAL GROWTH NEW PRESIDENT KIELY HOPES INCREASED MARKETING BOOSTS BREWER'S SALES VOLUME BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL GOLDEN COLO SHORTLY AFTER BEING NAMED THE FIRST NONFAMILY PRESIDENT IN THE HISTORY OF COORS BREWING CO IN FEBRUARY W LEO KIELY III CONFRONTED 200 SKEPTICAL BEER SALESMEN AT WILLOW DISTRIBUTORS IN DALLAS HOW DID YOU SCORE WITH THE FAMILY WHEN YOU DON'T HAVE ANY BACKGROUND IN BEER ONE SALESMAN ASKED THE FORMER FRITOLAY INC EXECUTIVE NO EXPERIENCE MR KIELY SAID FEIGNING SURPRISE WITH THAT HE SPREAD OPEN HIS SPORTS COAT TO DISPLAY HIS CONSIDERABLE GIRTH EVOKING ENTHUSIASTIC LAUGHTER AND APPLAUSE IT'S ABOUT TIME THEY GOT SOMEONE WHO LOOKS LIKE HE DRINKS THE PRODUCT HE DEADPANNED THOSE COORS BOYS ARE ALL TALL AND SKINNY WHILE MR KIELY CLEARLY CHARMED A CROWD THAT HE CONSIDERS CRITICAL TO THE FUTURE OF THE US'S THIRDLARGEST BREWER THE QUESTION REMAINS CAN HE TRANSPLANT ENOUGH OF THE MARKETING AND MERCHANDISING SKILLS OF FRITOLAY THE VENERABLE POTATO CHIP AND SNACK ARM OF PEPSICO INC TO SPARK COORS'S LAGGARD GROWTH PROSPECTS A KEY TO THAT QUESTION HE INSISTS IS THE SUPPORT PROVIDED TO LOCAL DISTRIBUTORS LIKE WILLOW WHERE I INTEND TO CONCENTRATE FIRST IS ON THE HANDOFF FROM THE BREWERY TO THE DISTRIBUTOR TO THE TRADE HE SAID THAT DAY THE 46YEAROLD MR KIELY WITH INPUT FROM THE COORS FAMILY WHICH REMAINS IN CONTROL OF THE BREWER HAS ADDED PRODUCT INNOVATION AND CORPORATE STREAMLINING TO HIS TODO LIST AT COORS BUT HIS BACKGROUND AS A DIVISIONAL PRESIDENT AT FRITOLAY CLEARLY COLORS HIS STRATEGY I COME FROM A VERY HIGH STANDARD OF MERCHANDISING IN THIS BUSINESS HE SAYS OF HIS FORMER EMPLOYER YOU TRIP OVER THEIR PRODUCT TRYING TO GET TO THE DOOR TO REACH THAT POINT AT COORS WOULD BE A MAJOR ACCOMPLISHMENT WHILE PETER COORS THE BREWER'S CHIEF EXECUTIVE OFFICER INSISTS THAT THIS IS NOT A COMPANY IN TROUBLE COORS DOES FACE SERIOUS PROBLEMS LIKE OTHER BIG BREWERS ITS SALES HAVE ONLY INCHED FORWARD IN RECENT YEARS AS DRINKERS MIGRATE TO LIGHTER LESSALCOHOLIC BEVERAGES THAT HAS TRIGGERED A NEW AND NASTY TURN IN THE SEEMINGLY ENDLESS BEER WARS INTENSE PRICE DISCOUNTING IN THAT MARKETPLACE IT WON'T BE EASY TO INCREASE SALES VOLUME WHILE PRODUCING HIGHER AND MORE CONSISTENT EARNINGS BUT THAT IS WHAT MR KIELY MUST DO COORS NEEDS MORE VOLUME TO KEEP PACE WITH BIGSPENDING MARKETERS LIKE ANHEUSERBUSCH COS AND PHILIP MORRIS COS' MILLER BREWING CO UNIT THE NATION'S BIGGEST BEER MAKERS WITH COMBINED ANNUAL SALES OF 130 MILLION BARRELS OF BEER COMPARED WITH COORS'S 20 MILLION BARRELS AND BOTH SHAREHOLDERS AND BANKERS ARE GROWING IMPATIENT WITH ADOLPH COORS CO'S WILDLY IRREGULAR PERSHARE EARNINGS WHICH HAVE VEERED BETWEEN 1 AND 20 CENTS IN THE PAST FIVE YEARS ON THE BRIGHT SIDE COORS'S SALES MEASURED IN BARRELS INCREASED 64 IN THE PAST DECADE WHILE THE INDUSTRY INCREASED JUST 6 AND THE COMPANY SEES OPPORTUNITY IN THE RECENT SALES DECLINES OF BUDWEISER AND MILLER LITE NOS 1 AND 2 ARE GOING SOFT AT THE SAME TIME SAYS ROBERT RECHHOLTZ GLEEFULLY THE EXECUTIVE VICE PRESIDENT OF MARKETING WHO WILL RETIRE NEXT MONTH ADDS HERE'S THE HOPE FOR US BUT HOW WILL THE BREWER TAKE ADVANTAGE OF THE OPENING COORS HAS PROBABLY WRUNG MOST OF THE GROWTH FROM ITS PAST STRATEGIES A NATIONAL EXPANSION FROM ITS ORIGINAL 11STATE TERRITORY AND THE INTRODUCTION OF LIGHT AND LOWPRICED BRANDS AND WHILE CLEAR MALTBASED ZIMA COORS'S LATEST PRODUCT IS SHOWING THERE'S STILL ROOM FOR NEW PRODUCTS MR KIELY ADMITS THAT THE POTENTIAL FOR NEWPRODUCT BREAKTHROUGHS ISN'T LIMITLESS THIS ISN'T GOING TO BE AS EASY AS CHIPS AND COOKIES HE ADMITS IN FACT SOME THINK COORS HAS PUT TOO MUCH EMPHASIS ON WHAT THEY SEE AS FADDISH IDEAS SUCH AS ZIMA WHILE IGNORING ITS CORE BEER PRODUCTS TOM PIRKO PRESIDENT OF BEVMARK INC A LOS ANGELES CONSULTING FIRM SAYS COORS HAS FAILED TO ADEQUATELY PUSH MAINSTREAM BEERS SUCH AS COORS EXTRA GOLD ANY COMPANY THAT TRIES TO RELY ON STRANGE NEW PRODUCTS ISN'T GOING TO STAND LONG HE SAYS COORS HASN'T MUCH OF A FAN CLUB ON WALL STREET EITHER SINCE IT SPUN OFF ITS NONBEER UNITS AS ACX TECHNOLOGIES INC LAST YEAR COORS'S ACCESS TO CAPITAL HAS BEEN WEAKENED ANALYSTS SAY COORS IS A SIN STOCK SAYS DAVE GOLDMAN AN OPPENHEIMER & CO ANALYST IT'S IN A MATURE INDUSTRY AND SOCIALLY OUT OF KEEPING WITH THE TIMES MEANWHILE WITH ABOUT 30 OF ALL BEER BEING SOLD AT DISCOUNTS IN SOME STATES AS MUCH AS 60 THE COMPANY IS FINDING IT DIFFICULT TO DELIVER ON COORS CHAIRMAN WILLIAM COORS'S GOAL OF SELLING MORE BEER MORE PROFITABLY IN THE FIRST QUARTER EVEN MIGHTY ANHEUSERBUSCH WITH MORE THAN FOUR TIMES THE VOLUME OF COORS SAW ITS EARNINGS FALL FOR THE FIRST TIME IN 16 YEARS THE PRICING WAR IS ALSO TESTING THE TENUOUS PARTNERSHIPS BETWEEN BREWERS AND DISTRIBUTORS SAYS BENJ STEINMAN EXECUTIVE EDITOR OF BEER MARKETER'S INSIGHTS RIGHT NOW EVERYBODY HAS STRAINED RELATIONSHIPS WITH THEIR WHOLESALERS BECAUSE THE MARGINS ARE SO LOUSY HE SAYS THAT'S ONE PLACE MR KIELY IS SURE HE CAN MAKE A DIFFERENCE PARTLY BY SPEEDING UP THE CORPORATE RESPONSE TO MARKETPLACE CHANGES IF A DISTRIBUTOR SAYS HE NEEDS A LOWER PRICE TO STAY COMPETITIVE THAT DECISION HAS TO BE MADE THERE IN THE FIELD IMMEDIATELY MR KIELY SAYS WE CAN'T ANSWER HIM IN SIX WEEKS AT THE SAME TIME MR KIELY EXPECTS MORE HELP FROM HIS DISTRIBUTORS IF THERE'S A WEEKEND EVENT IN THE PARKING LOT AT A LOCAL GROCERY STORE CHAIN WE NEED TO KNOW THAT HE SAYS IN SOME MARKETS COORS LIGHT IS THE NO 1 BRAND BUT YOU'D NEVER KNOW IT FROM SIGNAGE PRESENCE AND SHELF SPACE HE SAYS WE'VE GOT TO GET PEOPLE TO START THINKING LOCAL MARKETING GOOD POINTOFSALE MERCHANDISING CAN PRODUCE IMMEDIATE AND SIGNIFICANT RESULTS HE PROMISES THERE'S PLUS OR MINUS TWO SHARE POINTS TO BE GAINED OR LOST AT THE POINT OF SALE HE SAYS MR KIELY ALSO HAS MARCHING ORDERS FROM THE FAMILY TO CONTINUE THE CORPORATE STREAMLINING STARTED A YEAR EARLIER BY PETER COORS UNDER THE PROGRAM THE COMPANY WILL REVIEW ALL 600 FUNCTIONS ITS EMPLOYEES PERFORM AND SEE WHICH ARE CRITICAL TO BEING SUCCESSFUL IN THE BEER BUSINESS MR KIELY SAYS WHILE IT'S TOO EARLY TO KNOW THE IMPACT OF THE REVIEW HE SAYS SOME JOBS MAY BE LOST OR EMPLOYEES MAY BE MOVED TO NEW JOBS WHILE IT MAY SEEM LIKE A BACKHANDED COMPLIMENT ROBERT WEINBERG A BEER CONSULTANT AND A FORMER ANHEUSERBUSCH MARKETING EXECUTIVE THINKS COORS'S PAST INEFFICIENCY CAN WORK IN ITS FAVOR MILLER IS WELL ORGANIZED SO ITS GAINS WILL HAVE TO COME FROM NEW PRODUCTS AND MARKETING STRATEGIES HE SAYS COORS HOWEVER HAS THE OPPORTUNITY TO GAIN FROM NEW PRODUCTS AND MARKETING STRATEGIES AND TO GAIN BY THEIR OWN INTERNAL IMPROVEMENT STILL COORS'S EFFORTS MUST BE FOCUSED ON GETTING THE CRITICAL MASS NEEDED TO SURVIVE AS A NATIONAL BREWER HE SAYS WITH ONLY 10 OF THE US BEER BUSINESS ITS MARKETING COSTS ABOUT 8 A BARREL COMPARED WITH ANHEUSER'S 5 A BARREL BUT WITH THE OPTIMISM OF A TRUE SALESMAN MR KIELY SEES HIS SMALL MARKET SHARE NOT JUST AS A PROBLEM BUT AS AN OPPORTUNITY WE'VE STILL GOT 90 OF THE MARKET OUT THERE TO GET HE SAYS 9306280132 930628 THE SENATE'S TAX PACKAGE ENERGY TAX COMPROMISE PRESENTS MAJOR CHALLENGE FOR WHITE HOUSE BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AFTER PUSHING HIS ENERGY TAX THROUGH THE HOUSE PRESIDENT CLINTON GOT ONLY A SMALL GASOLINETAX INCREASE THROUGH THE SENATE NOW THE CHALLENGE IS TO GET A COMPROMISE THAT BOTH SIDES CAN LIVE WITH A HOUSESENATE CONFERENCE COMMITTEE PROBABLY WILL PRODUCE AN AGREEMENT THAT RAISES MORE MONEY THAN THE SENATE'S PLAN TO BOOST THE SALES TAX ON GASOLINE AND OTHER TRANSPORTATION FUELS BY 43 CENTS A GALLON BUT THE COMPROMISE IS LIKELY TO BE SUBSTANTIALLY NARROWER THAN THE HOUSE'S PROVISION TO TAX NEARLY ALL FORMS OF ENERGY BASED ON HEAT CONTENT AS MEASURED IN BRITISH THERMAL UNITS THE PROBLEM IS THAT A BIGGER INCREASE IN THE GAS TAX PROBABLY CAN'T PASS THE HOUSE AND EVEN A SMALLER BTU TAX PROBABLY CAN'T PASS THE SENATE ONE POTENTIAL COMPROMISE WOULD BE TO MARRY THE SENATE GAS TAX TO A REVAMPED ENERGY TAX ON HOME HEATING AND OTHER RESIDENTIAL AND BUSINESS UTILITY BILLS MANUFACTURERS WHO HAVE CONVINCED POLITICIANS THAT THEIR INTERNATIONAL COMPETITIVENESS WOULD SUFFER IF THEIR ENERGY USE IS TAXED WOULD BE EXEMPT BUT IT'S FAR FROM CLEAR THAT SUCH A COMPROMISE WOULD SURVIVE IT WAS RUMORED BRIEFLY THAT A TAX ON UTILITY BILLS WOULD BE PART OF THE SENATE TAX BUT VIGOROUS LOBBYING BY THE EDISON ELECTRIC INSTITUTE HELPED HEAD THAT OFF LOBBYING ON THE ENERGY TAX HAS BEEN AND WILL CONTINUE TO BE INTENSE WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAYS PRESIDENT CLINTON STILL WANTS A BROADBASED LEVY BUT SUCCESSFUL LOBBYING BY SOME INDUSTRIES PRODUCED EXEMPTIONS EVEN FROM THE NARROW SENATE TRANSPORTATIONFUELS TAX FOR INSTANCE COMPRESSED AND LIQUEFIED NATURAL GAS USED IN TRANSPORTATION WAS EXEMPTED AND IN A LASTMINUTE AMENDMENT ON THE SENATE FLOOR SO WAS AIRCRAFT FUEL NOT ALL THE SPECIAL INTERESTS SUCCEEDED THOUGH THE PROPANE ETHANOL AND METHANOL INDUSTRIES WERE EXPECTED TO GET SOME BREAK BUT DIDN'T THE HOUSE'S TOP NEGOTIATOR WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL REITERATED HIS BELIEF YESTERDAY ON NBC NEWS'S MEET THE PRESS THAT WHAT'S GOING TO HAPPEN IS A BLEND OF THE HOUSE AND SENATE PROVISIONS HE HAS ALWAYS FAVORED A HIGHER GASOLINE TAX AND SAID THE BTU TAX WOULD HAVE TRANSLATED INTO A GASOLINE TAX INCREASE OF ABOUT 75 CENTS THE CURRENT FEDERAL GAS TAX IS 141 CENTS FROM A DEFICITREDUCTION PERSPECTIVE THE HOUSE VERSION OF PRESIDENT CLINTON'S BTU TAX IS THE CLEAR WINNER IT WOULD RAISE MORE THAN 70 BILLION OVER FIVE YEARS COMPARED WITH ONLY 22 BILLION FROM THE SENATE'S GAS TAX MOREVER THOSE DIFFERENCES WOULD INCREASE OVER TIME BECAUSE THE BTU TAX WOULD RISE AS IT IS PHASED IN OVER A FIVEYEAR PERIOD AND WOULD BE ADJUSTED FOR INFLATION THEREAFTER BY 1998 IT WOULD RAISE 22 BILLION ANNUALLY COMPARED WITH ONLY 5 BILLION FROM THE TRANSPORTATION TAX WHICH WOULDN'T GROW OVER THE NEXT 10 YEARS THE BTU TAX WOULD RAISE ROUGHLY 211 BILLION MORE THAN FOUR TIMES THE REVENUE THAT WOULD BE PRODUCED BY THE HIGHER TRANSPORTATION TAX TO SOME OF COURSE THE GREATER REVENUERAISING POTENTIAL OF THE BTU TAX IS EXACTLY WHAT'S WRONG WITH IT JAMES MILLER CHAIRMAN OF THE LIBERTARIAN GROUP CITIZENS FOR A SOUND ECONOMY AND A WHITE HOUSE BUDGET DIRECTOR UNDER PRESIDENT REAGAN PREFERS THE SENATE TAX BECAUSE IT'S SMALLER HIS GROUP OPPOSES BOTH LEVIES THOUGH YOU'RE ASKING ME TO CHOOSE BETWEEN TWO ROTTEN APPLES HE SAYS ENVIRONMENTALLY THE BTU TAX WOULD DO MUCH MORE GOOD THAN THE GASTAX INCREASE EVEN WITH THE EXEMPTIONS GRANTED IN THE HOUSE FOR THE ALUMINUM INDUSTRY AND OTHERS THE BTU TAX WOULD CREATE AN INCENTIVE TO CONSERVE ACROSS A MUCH BROADER SPECTRUM OF FUELS INCLUDING GAS COAL AND NUCLEAR POWER AND WOULD PROMOTE THE USE OF CLEANER FORMS OF ENERGY THE SENATE GAS TAX IN CONTRAST WOULD HIT ONLY CARS TRUCKS AND RAILROADS IT WOULD DO VERY LITTLE TO HELP PRESIDENT CLINTON MEET HIS PLEDGE TO REDUCE GREENHOUSE GAS EMISSIONS MAINLY CARBON DIOXIDE TO 1990 LEVELS BY THE YEAR 2000 THE ENERGY DEPARTMENT ESTIMATES THAT THE HOUSEPASSED BTU TAX WOULD ACHIEVE NEARLY FOUR TIMES AS MUCH CARBON DIOXIDE REDUCTIONS AS A TRANSPORTATION TAX WOULD INDEED THE 43CENT SENATE TAX INCREASE PROBABLY WOULD BE TOO SMALL TO HAVE MUCH OF AN EFFECT ON AUTO USE AND HENCE URBAN SMOG YOU CAN FIND THAT DIFFERENCE IN PRICE BY WANDERING AROUND YOUR NEIGHBORHOOD GOING FROM ONE GAS STATION TO ANOTHER SAYS ED ROTHSCHILD ENERGY POLICY DIRECTOR OF CITIZENS ACTION A CONSUMER GROUP 9306280131 930628 CREDIT RATINGS DAIICHI KANGYO BANK LTD STANDARD & POOR'S CORP SAID IT PLACED ON CREDITWATCH FOR POSSIBLE DOWNGRADE THE DOUBLEAMINUS SENIOR DEBT RATINGS AND A1PLUS SHORTTERM DEBT RATINGS OF DAIICHI S&P SAID IT TOOK THE ACTION MAINLY BECAUSE OF THE BANK'S SUBSTANTIALLY HIGHER LEVEL OF NONPERFORMING LOANS TO ABOUT 12 BILLION OR 38 OF YEAREND LOANS ABOUT 32 BILLION OF LONGTERM DEBT IS AFFECTED THE RATINGS CONCERN SAID THAT ALTHOUGH NONPERFORMING LOANS WERE EXPECTED TO RISE AT ALL JAPANESE BANKS THE INCREASE AT DAIICHI WAS MUCH GREATER THAN EXPECTED ICH CORP LOUISVILLE KY MOODY'S INVESTORS SERVICE INC DOWNGRADED THIS INSURANCE HOLDING COMPANY'S SUBORDINATED DEBT TO SINGLEB3 FROM SINGLEB2 AND LOWERED ITS RATING OF ITS PREFERRED STOCK TO CAA FROM SINGLEB2 THE FINANCIAL STRENGTH RATING OF ICH'S SOUTHWESTERN LIFE INSURANCE CO UNIT WAS DOWNGRADED TO BA2 FROM BA1 THE DOWNGRADES REFLECT ICH'S SIGNIFICANT FINANCIAL LEVERAGE AND REDUCED FINANCIAL FLEXIBILITY AND THE NEGATIVE OUTLOOK FOR SUDSIDIARIES' INSURANCE OPERATIONS MOODY'S SAID IN A STATEMENT ICH HAD CONSOLIDATED ASSETS OF 37 BILLION AND STOCKHOLDER EQUITY OF 558 MILLION ON MARCH 31 TNP ENTERPRISES INC FORT WORTH TEXAS STANDARD & POOR'S CORP PLACED CERTAIN OF TNP ENTERPRISES' TEXASNEW MEXICO POWER CO UNIT DEBT ON ITS CREDITWATCH LIST WITH NEGATIVE IMPLICATIONS THE RATINGS CONCERN SAID 744 MILLION OF DEBT IS AFFECTED INCLUDING THE UTILITY'S DOUBLEB SENIOR SECURED AND DOUBLEBMINUS SUBORDINATED ISSUES S&P CITED A LOWERTHANEXPECTED RATE INCREASE RECEIVED BY THE UTILITY FROM REGULATORS LAST FALL IT ALSO QUESTIONED TEXASNEW MEXICO'S ABILITY AND WILLINGNESS TO ISSUE COMMON EQUITY TO STRENGTHEN ITS CREDIT POSITION 9306280130 930628 WHO'S NEWS OLSTEN NAMES FUSCO TO BE FIRST PRESIDENT OF HEALTHCARE UNIT WESTBURY NY OLSTEN CORP GEARING UP FOR SIGNIFICANT EXPANSION OF ITS HOME HEALTHCARE BUSINESS NAMED ROBERT FUSCO TO THE NEW POSITION OF PRESIDENT OF ITS HEALTHCARE UNIT MR FUSCO 42 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT AND GENERAL MANAGER OF THE DIVISION WHICH WILL BECOME THE NATION'S LARGEST HOME HEALTHCARE PROVIDER NEXT MONTH UPON THE EXPECTED COMPLETION OF A 448 MILLION ACQUISITION OF LIFETIME CORP BOSTON WITH LIFETIME OLSTEN'S HEALTHCARE BUSINESS IS EXPECTED TO GENERATE ABOUT 13 BILLION IN REVENUE OLSTEN SAID OR MORE THAN HALF OF THE ANTICIPATED TOTAL REVENUE OF ABOUT 2 BILLION IN 1992 OLSTEN'S EXISTING HEALTHCARE BUSINESS WITH ABOUT 220 OFFICES IN THE US AND CANADA ACCOUNTED FOR LESS THAN ONETHIRD OF THE COMPANY'S 12 BILLION IN SALES OLSTEN'S PRIMARY BUSINESS HAS BEEN TEMPORARY HELP MR FUSCO WHO JOINED OLSTEN IN 1985 PREVIOUSLY HELD POSTS WITH NATIONAL MEDICAL CARE HERTZ CORP AND WELLS FARGO'S ARMORED CAR DIVISION 9306280129 930628 FINANCING BUSINESS ROCHESTER COMMUNITY SAVINGS BANK ROCHESTER COMMUNITY SAVINGS BANK ROCHESTER NY SOLD A 65 MILLION ISSUE OF NONCUMULATIVE CONVERTIBLE PREFERRED STOCK WITH AN ANNUAL DIVIDEND RATE OF 7 TO BE PAID QUARTERLY PROCEEDS WILL BE USED TO ACCELERATE THE DISPOSITION OF ABOUT 174 MILLION IN NONPERFORMING COMMERCIAL REAL ESTATE ASSETS AS WELL AS TO EXPAND THE BANK'S CONSUMER FINANCIAL SERVICES BUSINESS BEAR STEARNS & CO IS THE LEAD UNDERWRITER 9306280128 930628 BASECLOSING PANEL COMPLETES ITS LIST OF MILITARY TARGETS WASHINGTON ON THE SAME WEEKEND THAT THE US NAVY HIT BAGHDAD THE INDEPENDENT BASE CLOSING COMMISSION STRUCK AT CHARLESTON SC AND THE SAN FRANCISCO BAY AREA AFTER DEBATE THE FEDERAL DEFENSE BASE CLOSURE AND REALIGNMENT COMMISSION MAINLY STUCK TO THE RECOMMENDATIONS MADE IN MARCH BY DEFENSE SECRETARY LES ASPIN AS WITH THAT ORIGINAL LIST CHARLESTON AND THE BAY AREA ARE HIT HARDEST WITH NAVAL SHIPYARDS AND AIR STATIONS REPRESENTING THOUSANDS OF JOBS BEING SCHEDULED FOR CLOSURE SOFTENING THE BLOW SLIGHTLY THE PANEL VOTED TO SHIFT SOME NAVY JOBS TO CHARLESTON FROM ELSEWHERE THE COMMISSION'S LIST OF PROPOSED CLOSINGS NOW GOES TO THE WHITE HOUSE UNDER THE LAW PRESIDENT CLINTON MAY ACCEPT OR REJECT THE ENTIRE LIST BUT HE MAY NOT CHANGE IT HE IS EXPECTED TO ACCEPT IT AND FORWARD IT TO CONGRESS WHICH SIMILARLY CAN'T CHANGE IT BUT CAN REJECT IT NEITHER THE PRESIDENT NOR CONGRESS IS EXPECTED TO BALK PARTLY BECAUSE THE PAIN IS LIMITED TO A FEW LOCALIZED AREAS THIS IS SUCH A LAME LIST SAID KEITH CUNNINGHAM WHO STUDIES BASE CLOSING ISSUES FOR BUSINESS EXECUTIVES FOR NATIONAL SECURITY A WASHINGTON POLICY GROUP HE SAID HE EXPECTS THE NEXT ROUND OF BASE CLOSINGS SCHEDULED BY THE LAW FOR 1995 TO BE MUCH BIGGER COMING ON THE EVE OF A PRESIDENTIAL ELECTION THOSE CLOSINGS WILL LIKELY BE FAR MORE CONTROVERSIAL THAN THIS YEAR'S ROUND HERE IS THE COMMISSION'S LIST OF MAJOR RECOMMENDED CLOSINGS JOHNSTOWN ARMY AND MARINE AIR STATION PA 9306280127 930628 JUSTICE DEPARTMENT OPPOSES SALOMON IN BID FOR DATA BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION IS OPPOSING A BID BY SALOMON BROTHERS INC TO LEARN WHAT THE DEPARTMENT HAS BEEN TOLD BY AN INVESTMENT FIRM THAT IS SUING SALOMON IN OPPOSING SALOMON'S MOTION TO COMPEL THE INVESTMENT FIRM TO REVEAL WHAT IT TOLD GOVERNMENT INVESTIGATORS THE DEPARTMENT ARGUED A NEED TO PROTECT THE INTEGRITY OF ITS CRIMINAL INVESTIGATION INTO SQUEEZES IN TWOYEAR TREASURY NOTES SOLD IN APRIL AND MAY OF 1991 DISTRICT JUDGE ROBERT PATTERSON HEARD ARGUMENTS ON SALOMON'S MOTION AT A HEARING IN NEW YORK FRIDAY AND WILL RULE ON THE MOTION IN DUE COURSE JUSTICE DEPARTMENT LAWYERS DIDN'T PARTICIPATE IN THE ARGUMENTS BUT DID FILE A LETTER WITH THE JUDGE BEFOREHAND THE JUSTICE DEPARTMENT WARNED THAT ALLOWING SALOMON A UNIT OF SALOMON INC TO PURSUE DISCOVERY OF COMMUNICATIONS BETWEEN THE DEPARTMENT AND THREE CROWN LP THE INVESTMENT FIRM SUING SALOMON IN A CIVIL CASE WOULD COMPROMISE THE INTEGRITY OF THE DEPARTMENT'S CRIMINAL INVESTIGATION BY PREMATURELY REVEALING TO SUBJECTS OR TARGETS OF THE INVESTIGATION INFORMATION OBTAINED IN CONFIDENCE BY THE DEPARTMENT AND THE GRAND JURY LOOKING INTO THE MATTER IF SALOMON'S LAWYERS ARE PERMITTED TO QUERY THREE CROWN ABOUT WHAT THE FIRM HAS TOLD THE GOVERNMENT LAWYERS FOR OTHER FIRMS ALLEGED TO HAVE BEEN PARTY TO THE SQUEEZES ALSO COULD PARTICIPATE IN THE QUESTIONING SALOMON ISN'T A TARGET OF THE CRIMINAL INVESTIGATION IT SETTLED FEDERAL ANTITRUST CHARGES LAST YEAR PAYING 275 MILLION WITHOUT ACKNOWLEDGING ANY WRONGDOING AND AGREEING TO COOPERATE WITH THE GOVERNMENT'S CONTINUING INQUIRY THE JUSTICE DEPARTMENT ALLEGED THAT SALOMON AND UNNAMED COCONSPIRATORS MANIPULATED THE MAY 1991 TWOYEAR TREASURY NOTES THREE CROWN OF SECAUCUS NJ CHARGED IN A CIVIL SUIT THAT SALOMON AND OTHERS SQUEEZED NOT ONLY THE MAY NOTES BUT ALSO THE TWOYEAR NOTES SOLD IN APRIL 1991 SALOMON WANTS TO KNOW WHAT THREE CROWN HAS TOLD THE JUSTICE DEPARTMENT BECAUSE THE FIRM IS SUING US A LAWYER FOR SALOMON EXPLAINED THREE CROWN IS OPPOSING SALOMON'S MOTION A GRAND JURY WAS CONVENED IN NEW YORK AT THE BEHEST OF THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION LAST SEPTEMBER TO PURSUE THE CRIMINAL PROBE INTO THE APRIL AND MAY 1991 NOTE SQUEEZES AND OTHER GOVERNMENT BOND MATTERS THE DEPARTMENT SAID SALOMON'S MOTION APPEARS TO CALL UPON THE THREE CROWN PLAINTIFFS TO DISCLOSE INTERVIEWS IN CONTEMPLATION OF PRESENTING GRAND JURY TESTIMONY AND TO IDENTIFY ANY GRAND JURY APPEARANCES THOSE PERSONS MAY HAVE MADE THE DEPARTMENT ADDED NOTHING WOULD PREVENT DEFENDANTS FROM ASKING WITNESSES WHO MAY HAVE APPEARED BEFORE A GRAND JURY FROM DESCRIBING THE QUESTIONS ASKED AND THE ANSWERS GIVEN SUCH DISCLOSURE IS AT ODDS WITH THE SECRECY OF GRAND JURY PROCEEDINGS 9306280126 930628 FINANCING BUSINESS SAMUEL GOLDWYN CO SAMUEL GOLDWYN CO SAID IN LOS ANGELES THAT IT EXPECTS TO POSTPONE ITS PROPOSED PUBLIC OFFERING UNTIL SEPTEMBER FROM JUNE THE COMPANY SAID IT WANTS TO INCLUDE IN THE PROSPECTUS ITS RESULTS FOR THE FIRST QUARTER WHICH ENDS WEDNESDAY THE OFFERING IS FOR AS MANY AS 1437500 COMMON SHARES GOLDWYN WHICH WENT PUBLIC IN DECEMBER 1991 IS 86OWNED BY ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAMUEL GOLDWYN JR IT PRODUCES AND DISTRIBUTES MOVIES AND TELEVISION PROGRAMMING 9306280125 930628 POLITICS & POLICY SUPREME COURT RULING MAKES IT TOUGHER FOR WORKERS TO WIN JOBBIAS LAWSUITS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT MADE IT TOUGHER FOR WORKERS TO WIN JOBBIAS LAWSUITS THE HIGH COURT IN A 54 RULING ISSUED FRIDAY SAID THAT EVEN IF AN EMPLOYER LIES IN COURT ABOUT WHY A WORKER WAS TREATED LESS FAVORABLY THAN OTHERS THAT ALONE DOESN'T ENTITLE THE WORKER TO VICTORY DESPITE THE EMPLOYER'S FALSE JUSTIFICATION THE WORKER STILL MUST PROVE THAT THERE WAS DISCRIMINATION BASED ON RACE GENDER RELIGION OR NATIONAL ORIGIN THE MAJORITY SAID SOME LOWER FEDERAL COURTS HAD SAID THAT IF AN EMPLOYER'S EXPLANATION ISN'T BELIEVABLE THE PLAINTIFF OUGHT TO WIN AUTOMATICALLY WRITING FOR THE MAJORITY JUSTICE ANTONIN SCALIA ASSERTED THAT THE COMBINATION OF AN EMPLOYER'S PHONY REASON COMBINED WITH OTHER EVIDENCE MAY WELL RESULT IN A PLAINTIFF'S PREVAILING IN COURT BUT AN EMPLOYER MAY BE DISHONEST OR INNOCENTLY INCORRECT ABOUT THE REASONS FOR ITS BEHAVIOR WITHOUT NECESSARILY HAVING DISCRIMINATED JUSTICE SCALIA REASONED HE POINTED OUT THAT COMPANIES SUED FOR ALLEGED DISCRIMINATION TYPICALLY MUST RELY ON EXPLANATIONS BY SUPERVISORY WORKERS WHEN A COMPANY GOES TO COURT IT MAY UNINTENTIONALLY OFFER AN UNTRUE JUSTIFICATION BASED ON A SUPERVISOR'S ACCOUNT JOINING THE MAJORITY WERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES SANDRA DAY O'CONNOR ANTHONY KENNEDY AND CLARENCE THOMAS IN A SPIRITED DISSENT JUSTICE DAVID SOUTER SAID THE DECISION WAS UNFAIR TO PLAINTIFFS UNWORKABLE IN PRACTICE AND INEXPLICABLE IN FORGIVING EMPLOYERS WHO PRESENT FALSE EVIDENCE IN COURT HE WARNED THAT THE RULING WOULD DISCOURAGE SOME BIAS VICTIMS FROM SUING AND FOR ONES WHO DO FILE SUIT JUSTICE SOUTER SAID THE RESULT WILL LIKELY BE WASTED TIME EFFORT AND MONEY FOR ALL CONCERNED JOINING THE DISSENT WERE JUSTICES BYRON WHITE HARRY BLACKMUN AND JOHN PAUL STEVENS THE CASE INVOLVED A BLACK GUARD AT A MINIMUMSECURITY MISSOURI PRISON WHO WAS DEMOTED AND THEN DISCHARGED ALLEGEDLY FOR HAVING VIOLATED A NUMBER OF PRISON RULES THE FIRED EMPLOYEE WHO WAS REPLACED BY A WHITE MAN SUED THE STATE FOR DAMAGES UNDER A FEDERAL CIVIL RIGHTS LAW KNOWN AS TITLE VII A FEDERAL TRIAL JUDGE RULED THAT THE DEMOTION AND DISCHARGE WERE PERSONALLY MOTIVATED NOT THE PRODUCT OF RACIAL BIAS A FEDERAL APPEALS COURT IN ST LOUIS REVERSED THAT RULING IT SAID A PLAINTIFF IN SUCH A CASE SHOULD AUTOMATICALLY WIN ONCE HE HAS SHOWN THE EMPLOYER'S PURPORTED REASONS FOR ITS ACTIONS WERE PRETEXTUAL OR FALSE SEPARATELY THE HIGH COURT UPHELD A FEDERAL LAW FORBIDDING BROADCAST ADVERTISEMENTS FOR LOTTERIES IN STATES THAT BAN LOTTERIES THE JUSTICES REVERSED A LOWERCOURT RULING THAT SAID THE FEDERAL RESTRICTION VIOLATED THE FIRST AMENDMENT RIGHT TO FREE SPEECH OF A RADIO STATION IN NORTH CAROLINA WHICH BANS LOTTERIES THE STATION BROADCASTS FROM A SITE CLOSE TO THE NORTH CAROLINAVIRGINIA BORDER AND WANTED TO CARRY ADS FOR VIRGINIA'S STATESPONSORED LOTTERY BY A 72 VOTE THE SUPREME COURT SAID THAT THE FEDERAL RESTRICTION WAS A PERMISSIBLE LIMIT ON COMMERCIAL SPEECH WHICH IS AFFORDED LESS CONSTITUTIONAL PROTECTION THAN SOME OTHER TYPES OF EXPRESSION US VS EDGE BROADCASTING CO 9306280124 930628 BUSINESS BRIEF STORAGE TECH OFFICIALS' STOCK SALES IN EARLY '92 INVESTIGATED BY SEC LOUISVILLE COLO STORAGE TECHNOLOGY CORP SAID THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING STOCK SALES MADE LAST YEAR BY OFFICERS AND DIRECTORS PRIOR TO ANNOUNCEMENTS OF DELAYS IN ITS BALLYHOOED ICEBERG DISKSTORAGE SYSTEM STORAGE TECH SAID IT INTENDS TO COOPERATE FULLY WITH THE SEC'S PROBE A COMPANY SPOKESMAN DECLINED TO COMMENT FURTHER STORAGE TECH ALREADY FACES A CLASSACTION LAWSUIT BY SHAREHOLDERS ALLEGING THAT SALES OF SIGNIFICANT QUANTITIES OF STOCK WERE PROMPTED BY INSIDE KNOWLEDGE OF COMING ICEBERG DELAYS THE INVESTIGATION AND SUIT STEM FROM EVENTS OF LATE JANUARY 1992 WHEN 15 TOP OFFICERS AND DIRECTORS INCLUDING THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER RYAL POPPA EXERCISED STOCK OPTIONS AND IMMEDIATELY SOLD MORE THAN 90000 SHARES STORAGE TECH STOCK WAS RIDING HIGH IN ANTICIPATION OF ICEBERG PEAKING AT 78 A SHARE AT THE TIME BUT HAS SINCE FALLEN BY ABOUT HALF CLOSING FRIDAY AT 36875 UP 1625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR POPPA HAS SAID THE COMPANY DIDN'T KNOW UNTIL LATE MAY 1992 THAT ICEBERG WOULD BE DELAYED THE COMPANY BELIEVES THE SHAREHOLDER SUIT IS WITHOUT MERIT IN ITS ANNOUNCEMENT STORAGE TECH SAID THE SEC HAD SUBPOENAED DOCUMENTS AND WAS INVESTIGATING POSSIBLE VIOLATIONS OF FEDERAL DISCLOSURE REPORTING OR INSIDERTRADING REQUIREMENTS THE SUBPOENAS ARE BELIEVED TO COVER AN EXTENSIVE NUMBER OF DOCUMENTS AND TO TRACK THE ALLEGATIONS OF THE SHAREHOLDER SUIT BUT IT ISN'T CLEAR WHETHER THE COMPANY OR INDIVIDUALS WITHIN THE COMPANY ARE THE TARGET OF THE SEC INVESTIGATION AN OFFICIAL WITH THE SEC'S DENVER REGIONAL OFFICE SAID THE AGENCY COULD NEITHER CONFIRM NOR DENY THE EXISTENCE OF AN INVESTIGATION AFTER REPEATED DELAYS STORAGE TECH RECENTLY SAID THAT SHIPMENTS OF ICEBERG WHICH CAN STORE MASSIVE AMOUNTS OF DATA ON AN ARRAY OF INEXPENSIVE DISK DRIVES SHOULD BEGIN BY THE END OF THIS YEAR 9306280123 930628 INTERNATIONAL GERMAN STEEL OUTPUT DECLINES WIESBADEN GERMANY PRODUCED 299 MILLION METRIC TONS OF RAW STEEL IN MAY 185 BELOW THE LEVEL OF A YEAR EARLIER WHILE PRODUCTION OF ROLLED STEEL PRODUCTS FELL 151 TO 232 MILLION TONS THE FEDERAL STATISTICS OFFICE SAID GERMAN STEEL PRODUCTION FELL 139 TO 152 MILLION TONS IN THE FIRST FIVE MONTHS OF THE YEAR WHILE ROLLED PRODUCTS OUTPUT DROPPED 97 TO 123 MILLION TONS THE STATISTICS OFFICE NOTED THAT STRIKES IN THE EASTERN GERMAN STEEL INDUSTRY DURING SEVERAL WEEKS IN MAY MORE THAN HALVED THE REGION'S OUTPUT IN THE MONTH 9306280122 930628 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT CAROLINA POWER & LIGHT CO 100 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 1998 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY MERRILL LYNCH & CO AND REOFFERED AS 5375S AT 9955 TO YIELD 548 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 35 BASIS POINTS ABOVE TREASURYS THE ISSUE IS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP FEDERAL HOME LOAN BANK 250 MILLION OF STEPUP DEBENTURES DUE JULY 16 1996 PRICED AT PAR WITH AN INITIAL COUPON OF 39 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR ONE YEAR STEP UP TO A 5 COUPON AFTER THE FIRST YEAR THE ISSUE WAS PRICED AT A SPREAD OF 20 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL HOME LOAN MORTGAGE CORP 150 MILLION OF NOTES DUE JULY 9 2003 PRICED AS 63S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR THREE YEARS WERE PRICED AT A SPREAD OF 45 BASIS POINTS ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 1 BILLION OF MEDIUMTERM NOTES DUE JULY 8 1994 FLOATING AT THE FEDERAL FUNDS RATE ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL FLOAT WEEKLY AND PAY INTEREST QUARTERLY THE FIRST INTEREST PAYMENT DATE IS OCT 8 THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MERRILL LYNCH & CO 100 MILLION OF MEDIUMTERM NOTES DUE JULY 14 1994 PRICED TO FLOAT FIVE BASIS POINTS BELOW THREEMONTH LONDON INTERBANK OFFERED RATE ACCORDING TO MCM CORPORATEWATCH THREEMONTH LIBOR IS CURRENTLY AT 33516 THE ISSUE FLOATS QUARTERLY AND PAYS QUARTERLY INTEREST RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH MERRILL LYNCH & CO 100 MILLION OF MEDIUMTERM NOTES DUE JULY 18 1994 PRICED TO FLOAT 20 BASIS POINTS ABOVE THE FEDERAL FUNDS RATE ACCORDING TO MCM CORPORATEWATCH THE ISSUE FLOATS DAILY AND PAYS QUARTERLY INTEREST RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH MERRILL LYNCH & CO 100 MILLION OF MEDIUMTERM NOTES DUE JULY 15 1994 FLOATING 245 BASIS POINTS UNDER THE PRIME RATE ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WILL FLOAT DAILY AND PAY INTEREST QUARTERLY RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD BY MERRILL LYNCH LOTTERY ENTERPRISES INC INITIAL PUBLIC OFFERING OF 35 MILLION SHARES OF COMMON STOCK PRICED AT 9 APIECE THROUGH MANAGING UNDERWRITER COMMONWEALTH ASSOCIATES FEDERAL HOME LOAN MORTGAGE CORP 5001 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1562 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MORGAN STANLEY & CO THE OFFERING SERIES 1564 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 715 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 148 YEARS FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GREENWICH CAPITAL MARKETS INC THE OFFERING SERIES 1563 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 149 YEARS FEDERAL HOME LOAN MORGAGE CORP 240 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES 1557 IS BACKED BY THE AGENCY'S FIVEYEAR BALLOON 55 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 61 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 49 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1993130 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS CANADA ZERO 2005 SPECIALPURPOSE VEHICLE 150 MILLION CANADIAN DOLLARS OF ZEROCOUPON EUROBONDS DUE SEPT 1 2005 SECURED BY FIRST CHARGE ON GOVERNMENT OF CANADA STRIP BONDS AT ISSUE PRICE 4075 VIA WOOD GUNDY INC REOFFERED AT 395 TO YIELD 798 A MARGIN OF 47 BASIS POINTS ABOVE GOVERNMENT'S 75 BOND DUE 2003 FEES 1525 POINTS FORTIS FINANCE NV NETHERLANDS 250 MILLION DUTCH GUILDERS OF 6625 EUROBONDS DUE JULY 20 2000 AT ISSUE PRICE 10045 VIA KBW EFFECTENBANK BV REOFFERED AT 997 TO YIELD 668 A MARGIN OF 25 BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN GUARANTORS AG 1824 AND VSB 1990 NV FEES ONE POINT ISTITUTO BANCARIO SAN PAOLO SPA NASSAU BRANCH ITALIAN PARENT 150 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE JULY 2003 AT ISSUE PRICE PAR VIA KIDDER PEABODY INTERNATIONAL LTD INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS LESS 01875 SUBJECT TO MINIMUM COUPON 6 AND MAXIMUM 10 FEES 05 POINT SWISSAIR SWITZERLAND 200 MILLION SWISS FRANCS OF 55 BONDS DUE JULY 23 2003 VIA UBS AT ISSUE PRICE PAR FEES STANDARD 9306280121 930628 ECONOMY LAST MONTH'S SALES OF EXISTING HOMES CLIMBED BY 46 BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL SALES OF PREVIOUSLY OWNED HOMES JUMPED A ROBUST 46 IN MAY AS THE HOUSING RECOVERY CONTINUED TO REGAIN STEAM AMID CONTINUED LOW INTEREST RATES AND STRENGTHENING JOB GROWTH EXISTINGHOME SALES ROSE TO A SEASONALLY ADJUSTED ANNUAL RATE OF 3610000 FROM A REVISED PACE OF 3450000 IN APRIL ACCORDING TO THE NATIONAL ASSOCIATION OF REALTORS ALL REGIONS POSTED GAINS FROM APRIL THE SALES INCREASE WAS THE BIGGEST SINCE DECEMBER AND MARKED THE SECOND CONSECUTIVE MONTH OF GAINS AFTER THREE STRAIGHT MONTHS OF DECLINES THAT HOUSING ANALYSTS BLAMED LARGELY ON BAD WEATHER IN MANY PARTS OF THE COUNTRY INDEED ANALYSTS ATTRIBUTE A PART OF THE CURRENT RESURGENCE TO BETTER WEATHER BUT THEY ALSO CREDIT INTEREST RATES THAT HAVE REMAINED BELOW 8 AS WELL AS IMPROVEMENTS IN JOB GROWTH WHEN YOU COMBINE LOW INTEREST RATES WITH STRONGER JOB GROWTH THAT'S A PERFECT ENVIRONMENT FOR THE HOUSING MARKET SAID MARK M ZANDI CHIEF ECONOMIST FOR REGIONAL FINANCIAL ASSOCIATES INC A CONSULTING FIRM BASED IN WEST CHESTER PA MR ZANDI ADDED THAT CONSUMER CONFIDENCE REMAINS SHAKY HOWEVER AMID UNCERTAINTY OVER THE ECONOMY AND THE TAX IMPLICATIONS OF PRESIDENT CLINTON'S ECONOMIC PLAN FOR NOW AT LEAST ALL INDICATIONS POINT TO HEALTHY SALES THROUGH THE SUMMER THOUGH THE ECONOMY IS GROWING IT IS DOING SO AT SUCH A SLOW PACE THAT INFLATION NO LONGER SEEMS AN IMMEDIATE THREAT THAT HELPS KEEP INTEREST RATES DOWN THE 30YEAR FIXEDRATE MORTGAGE FELL FRIDAY TO A 21YEAR LOW OF 737 FROM 743 THE WEEK EARLIER ACCORDING TO HSH ASSOCIATES INC A BUTLER NJ MORTGAGE PUBLISHING FIRM ALTHOUGH THE INTEREST RATES HAVE HOVERED AROUND 750 FOR SOME TIME A RENEWED DOWNWARD TREND IN RECENT WEEKS HAS REIGNITED ACTIVITY IN REFINANCINGS AND HOMELOAN APPLICATIONS ACCORDING TO A WEEKLY INDEX OF VOLUME BY THE MORTGAGE BANKERS ASSOCIATION MORTGAGE LOAN APPLICATIONS HAVE RISEN STEADILY THE PAST MONTH AND WERE RUNNING 55 ABOVE NORMAL AS OF JUNE 18 THIS BODES WELL FOR FUTURE SALES BECAUSE IT TYPICALLY TAKES ABOUT TWO MONTHS TO CLOSE A TRANSACTION INDEED THE STRONG HOUSING REPORT FOR MAY REFLECTS ACTIVITY THAT BEGAN IN MARCH WHEN THE MORTGAGE APPLICATIONS WERE RUNNING AS MUCH AS 70 ABOVE NORMAL THE NATIONAL ASSOCIATION OF REALTORS PROJECTS THAT SALES FOR THE YEAR WILL TOTAL 3640000 A 34 INCREASE FROM 1992 BUT SOME ANALYSTS THINK THE SALES COULD EXCEED 37 MILLION A LEVEL THAT APPROACHES BOOM PROPORTIONS IN FACT MANY HOUSING MARKETS ARE BOOMING AND HAVE BEEN FOR SOME MONTHS WERE IT NOT FOR THE DRAG FROM CALIFORNIA WHICH REPRESENTS NEARLY ONEFIFTH THE NATIONAL MARKET AND CONTINUED WEAKNESS IN PARTS OF THE NORTHEAST THE OVERALL SALES WOULD BE MORE DRAMATIC BETWEEN THE COASTS WHERE HOUSING IS MORE AFFORDABLE AND THE ECONOMY IS COMPARATIVELY STRONG MARKETS ARE ROBUST TO BOOMING FROM THE ROCKIES TO THE APPALACHIANS IN MADISON WIS FOR INSTANCE DEMAND IS SO STRONG THAT AS MANY AS FIVE BUYERS ARE COMPETING FOR THE SAME HOUSE AND WELLPRICED HOMES ARE STAYING ON THE MARKET AS LITTLE AS SEVEN DAYS 9306280120 930628 MARKETING & MEDIA ADVERTISING SOME FIND PRICE OF SPONSORING OLYMPICS IS TOO HIGH A HURDLE BY LAURA BIRD WITH LESS THAN A YEAR TO GO BEFORE THE OLYMPIC TORCH IS RELIGHTED ADVERTISERS ARE DEEP INTO NEGOTIATIONS FOR POSITIONS ON THE US SPONSORSHIP TEAM FAMILIAR FACES LIKE COCACOLA EASTMAN KODAK VISA INTERNATIONAL TIME WARNER AND BAUSCH & LOMB WERE QUICK TO PLUNK DOWN 40 MILLION EACH FOR WORLDWIDE RIGHTS TO USE THE FIVERING OLYMPIC LOGO IN ADVERTISING TIED TO THE 1994 WINTER GAMES IN LILLEHAMMER NORWAY AND THE 1996 SUMMER GAMES IN ATLANTA FIVE MORE NATIONSBANK HOME DEPOT SARA LEE INTERNATIONAL BUSINESS MACHINES AND ANHEUSERBUSCH HAVE PAID THAT TO BE US SPONSORS OF THE GAMES AND AMERICAN ATHLETES BUT WITH THE PRICE OF SPONSORSHIPS AT LEAST DOUBLE THOSE OF LAST YEAR'S SUMMER GAMES IN BARCELONA SEVERAL PAST OLYMPIAN MARKETERS ARE TAKING A PASS BRISTOLMYERS SQUIBB HILTON HOTELS TEXACO GASOLINE MINNESOTA MINING & MANUFACTURING AND THE US POSTAL SERVICE ALL OF WHICH SPONSORED THE US TEAM LAST YEAR ARE SITTING OUT AN OFFICIAL OLYMPIC TIEIN AT LEAST UNTIL CHEAPER SECONDTIER PACKAGES ARE OFFERED IN THE PAST MARKETERS COULD PARTICIPATE AT SEVERAL LEVELS RANGING FROM LESS THAN 5 MILLION FOR A US TEAM SPONSORSHIP TO 20 MILLION FOR TOPOFTHELINE INTERNATIONAL OLYMPIC COMMITTEE SPONSORSHIPS BUT ACCORDING TO SEVERAL EXECUTIVES INVOLVED IN NEGOTIATIONS ORGANIZERS OF THE ATLANTA GAMES ARE OFFERING JUST ONE EXPENSIVE PACKAGE A 40 MILLION EXCLUSIVE SPONSORSHIP OF BOTH THE GAMES AND THE US TEAM EFFECTIVELY PRICING SECONDTIER SPONSORS OUT OF THE STADIUM WE WOULD LIKE TO BE A SPONSOR OF THE US OLYMPIC TEAM SAYS NEIL COHEN VICE PRESIDENT OF PUBLIC RELATIONS FOR HILTON HOTELS BASED IN BEVERLY HILLS CALIF BUT AT LEVELS OUR INDUSTRY CAN AFFORD HE ADDS THAT EVEN A QUARTER OR HALF THE PRICE WOULD BE TOO HIGH FOR HILTON AND HE EXPECTS FOR MOST OF ITS COMPETITORS THE TRAVEL INDUSTRY IS THE FIRST ONE INTO A RECESSION AND THE LAST ONE OUT HE SAYS AND THOUGH AN INCREMENTAL INCREASE FOR INFLATION WAS EXPECTED HE SAYS THE ATLANTA ORGANIZERS ARE GOING OVERBOARD THIS ISN'T POSTWORLD WAR I GERMANY HE SAYS TO BE SURE PLENTY OF COMPANIES ARE RARING TO GO THE ATLANTA GAMES THE CENTENNIAL OF THE MODERN OLYMPICS PROMISE TO BE INESCAPABLE TOUTED AS THE MOST IMPORTANT PEACETIME EVENT OF THE CENTURY COME 1996 THE ARGUMENT GOES ADVERTISERS WILL FIND IT HARD TO BE HEARD ABOVE THE BALLYHOO UNLESS THEY ARE SOMEHOW TIED IN XEROX PANASONIC AND CHRYSLER ARE ABOUT TO RENEW THEIR SPONSORSHIPS KNOWLEDGEABLE EXECUTIVES SAY AMONG THE FORMER SPONSORS THAT HAVEN'T COMMITTED MARS INC EVIAN WATERS OF FRANCE AND UNITED AIR LINES BILL MCCAHAN CHIEF MARKETING OFFICER OF ATLANTA CENTENNIAL OLYMPIC PROPERTIES THE JOINT MARKETING ARM OF THE US OLYMPIC COMMITTEE AND THE ATLANTA GAMES ORGANIZING COMMITTEE DOESN'T THINK ANYONE HAS BEEN SHUT OUT HE ADDS THAT IT IS PREMATURE TO BE TALKING SECONDTIER SPONSORSHIP DEALS WHEN ALL THE FIRSTTIER SPONSORS HAVEN'T BEEN LINED UP I WOULD BE VERY HOPEFUL THAT AS WE MOVE THROUGH TIME WE'LL HAVE MORE FORMER USOC SPONSORS PARTICIPATING AT ONE POINT OR ANOTHER HE SAYS BETWEEN 40 AND 50 COMPANIES ARE EXPECTED TO HAVE TANGIBLE VISIBLE MARKETING RIGHTS HE ADDS BUT THE CLOCK IS TICKING FEELING PRICED OUT COMPANIES ARE SIDESTEPPING OFFICIAL ORGANIZERS AND GOING TO THE ATHLETES SEVERAL COMPANIES HAVE SIGNED NEW DEALS WITH THE NATIONAL FEDERATIONS THAT GOVERN INDIVIDUAL OLYMPIC SPORTS SUCH ARRANGEMENTS SET THE STAGE FOR WHAT ARE KNOWN AS AMBUSH MANEUVERS BECAUSE MARKETERS THAT SPONSOR SAY THE US SKATING TEAM CAN TRUMPET THEIR INVOLVEMENT WITH SKATERS WITHOUT FORGING AN OFFICIAL LINK TO THE OLYMPIC COMMITTEE OR GAMES NOT ONLY ARE THESE SIDE DEALS CHEAPER THEY CAN BE AS EFFECTIVE A MARKETING TOOL AS OFFICIAL SPONSORSHIP THREE ADVERTISERS THAT AREN'T USOC SPONSORS HAVE SIGNED SPONSORSHIP AGREEMENTS WITH USA GYMNASTICS WHICH GOVERNS THE SPORT BUDGET RENT A CAR HERSHEY FOODS AND REEBOK INTERNATIONAL HILTON HOTELS WAS QUICK TO RENEW ITS GYMNASTICS SPONSORSHIP WHEN IT BECAME CLEAR AN AFFORDABLE USOC ARRANGEMENT WASN'T FORTHCOMING AND USA GYMNASTICS IS DOING HANDSPRINGS FOR ITS NEW PATRONS WITH AS MANY AS 14 TELEVISED MEETS SET FOR NEXT YEAR THE FEDERATION HAS PLENTY OF EXPOSURE TO OFFER CORPORATE BACKERS AND AT A FRIENDLY PRICE SPONSORSHIPS RANGE FROM 300000 TO 3 MILLION SAYS ROD DAVIS VICE PRESIDENT OF MARKETING THUS A THREEWAY MEET OF OLYMPIC GYMNASTS FROM THE US THE UKRAINE AND BELARUS WILL AIR ON THE ABC NETWORK'S WIDE WORLD OF SPORTS IN AUGUST AS THE HILTON CHALLENGE SIMILAR NAME EVENTS ARE IN THE WORKS INVOLVING MCDONALD'S AND REEBOK GYMNASTS WILL WEAR STICKERS IMPRINTED WITH THE TITLE SPONSOR'S LOGO MR DAVIS SAYS THE FEDERATION IS EVEN CONSIDERING OPENING THE THREEWAY MEET WITH A RENDITION OF SO NICE TO COME HOME TO THE THEME SONG IN HILTON'S ADS USA GYMNASTICS IS SELLING MUCH OF THE ADVERTISING TIME DURING COMPETITION BROADCASTS ADVERTISERS COULD GET USED TO THIS SORT OF TREATMENT SAYS STEPHEN DISSON PRESIDENT OF D&F CONSULTING OF WASHINGTON DC WHICH CONSULTS WITH COMPANIES INCLUDING HILTON ON EVENT SPONSORSHIPS ONCE THEY SIT OUT ONE OLYMPICS HE PREDICTS THEY MAY NOT COME BACK THEY'LL STICK WITH THE FEDERATIONS THE OLYMPICS' ORGANIZERS HE SAYS AREN'T OFFERING A WHOLE LOT MORE THAN EXCLUSIVITY AND THE RIGHT TO SPEND MORE AETNA LIFE & CASUALTY CORP TAPPED INTERPUBLIC GROUP'S LINTAS OF NEW YORK TO CREATE ADVERTISING FOR AETNA HEALTH PLANS ITS MANAGED HEALTH CARE UNIT INDUSTRY EXECUTIVES SAID ESTIMATED BILLINGS ARE 15 MILLION THE WIN IS A WELCOME SHOT IN THE ARM FOR LINTAS WHICH IS DEFENDING ITS BIG INTERNATIONAL BUSINESS MACHINES PERSONAL COMPUTER ACCOUNT LINTAS BESTED NEW YORK CONTENDERS THAT INCLUDED AYER D'ARCY MASIUS BENTON & BOWLES GREY ADVERTISING AND YOUNG & RUBICAM'S SUDLER & HENNESSY UNIT THE EXECUTIVES SAID RICHARDS GROUP OF DALLAS HAD HANDLED THE ACCOUNT AETNA EXECUTIVES COULDN'T BE REACHED PETER R MILLS HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ROSS ROY INC ENDING SPECULATION ON WHO WOULD SUCCEED GLEN W FORTINBERRY THE PARENT COMPANY'S CHAIRMAN EFFECTIVE AUG 1 MILLS WILL ASSUME ALL RESPONSIBILITIES OF ROSS ROY INC THE SIXTH AND LARGEST SUBSIDIARY OF THE MARKETING AND COMMUNICATIONS COMPANY ROSS ROY GROUP FORTINBERRY WILL RETAIN HIS ROLE AS CHAIRMAN OF ROSS ROY GROUP AND HEAD OF ITS FIVE SMALLER SUBSIDIARIES IT'S CLEARLY THE NO 2 SPOT SAID CHRIS LAWSON EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF ROSS ROY GROUP ACCOUNT KOREY KAY & PARTNERS NEW YORK WON THE ESTIMATED 9 MILLION ACCOUNT OF BAYBANKS INC BOSTON'S LARGEST RETAIL BANK CONTENDERS WERE INGALLS QUINN & JOHNSON BOSTON AND BERENTER GREENHOUSE & WEBSTER NEW YORK 9306280119 930628 COMMODITIES DIRECTION OF OIL PRICES DEPENDS ON JULY OUTPUT BY KUWAIT AND OTHER LEADING OPEC MEMBERS BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL JULY PROMISES TO BE THE CRUCIAL MONTH FOR OIL MARKETS WITH THE WORLD AWASH IN CRUDE OIL THE CURRENT SLIDE IN PETROLEUM PRICES MAY ACCELERATE IN JULY OR PRICES ALREADY DOWN BY 2 A BARREL IN TWO MONTHS COULD TURN AROUND AND HEAD UPWARD MUCH DEPENDS ON THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES OIL ANALYSTS ARE DIVIDED OVER THE DIRECTION OF PETROLEUM PRICES BUT THEY AGREE THAT THE OVERRIDING FACTOR IN THE PRICING OUTLOOK FOR THE THIRD QUARTER AND POSSIBLY FOR THE ENTIRE SECOND HALF IS THE VOLUME OF CRUDE OIL THAT WILL BE PRODUCED BY KUWAIT AND OTHER LEADING OPEC MEMBERS IN JULY ALL EYES ARE ON OPEC SAID MICHAEL ROTHMAN SENIOR COMMODITIES ANALYST WITH MERRILL LYNCH AND PRICES WILL REMAIN IN A HOLDING PATTERN UNTIL THERE IS SOME INDICATION OF WHAT PRODUCTION WILL BE FOR THE MONTH IT WILL BE SEVERAL DAYS OR EVEN TWO WEEKS OR SO BEFORE THERE WILL BE ENOUGH EVIDENCE TO ASSESS OPEC'S INITIAL LEVELS OF PRODUCTION FOR JULY MEANWHILE OIL MARKETS ARE LIKELY TO REMAIN IN A SLUMP ALTHOUGH PRICES RECENTLY HAVE SETTLED INTO A RELATIVELY NARROW TRADING RANGE CRUDE PRICES ENDED LAST WEEK ON A SLIGHTLY DOWN NOTE LIGHT LOWSULFUR CRUDE OIL FOR AUGUST DELIVERY SETTLED FIVE CENTS LOWER FRIDAY AT 1884 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE BUT OIL MARKETS HAVE BEEN IN THE SUMMER DOLDRUMS SINCE APRIL BECAUSE OF PERCEPTIONS OF AN OVERSUPPLY OF CRUDE THIS MONTH THE UNCERTAINTIES OVER OPEC'S SUMMER OUTPUT HAVE ADDED TO THE PRESSURES PRICES HAVE COME DOWN BY AROUND 1 A BARREL JUST SINCE THE OPEC MEETING EARLIER THIS MONTH OPEC'S FAILURE TO INCLUDE KUWAIT IN ITS OUTPUT AGREEMENT FOR THE THIRD QUARTER CONTRIBUTED TO OILMARKET JITTERS SO HAVE RECURRING REPORTS THAT LIMITED QUANTITIES OF IRAQI OIL MAY START FLOWING INTO WORLD OIL MARKETS SOON IRAQ WHOSE OIL EXPORTS ARE BANNED BY THE UNITED NATIONS OFFERED AGAIN LAST WEEK TO RESUME UN TALKS ON SELLING A SMALL AMOUNT OF OIL TO FINANCE HUMANITARIAN PURPOSES AS PREVIOUSLY REPORTED ALI AHMAD ALBAGHLI THE KUWAITI OIL MINISTER REFUSED TO SIGN OPEC'S PRODUCTION PACT FOR THE THIRD QUARTER BECAUSE KUWAIT WAS OFFERED ONLY A MODEST INCREASE IN ITS QUOTA OF 16 MILLION BARRELS A DAY AS A RESULT WHILE QUOTAS OF OTHERS IN OPEC ARE FROZEN AT CURRENT LEVELS KUWAIT IS NOW FREE TO PRODUCE AS MUCH AS IT CAN AND THE EMIRATE'S PRODUCTION CAPACITY IS RECOVERING RAPIDLY FROM THE DAMAGES OF IRAQ'S INVASION MR ALBAGHLI HAS REPEATEDLY STATED THAT KUWAIT WILL ACT RESPONSIBLY AND WILL INCREASE ITS OUTPUT GRADUALLY TO AVOID WRECKING THE OIL MARKETS HE SAID KUWAIT WILL RAISE ITS OIL PRODUCTION TO 19 MILLION BARRELS A DAY IN JULY TWO MILLION A DAY IN AUGUST AND 2160000 A DAY IN SEPTEMBER DEMAND FOR OPEC'S OIL IS EXPECTED TO RISE SEASONALLY BY ENOUGH TO ABSORB THE INCREASED KUWAITI OUTPUT BUT THE INCONCLUSIVE END TO THE JUNE OPEC CONFERENCE NOT ONLY LEFT KUWAIT'S OUTPUT UNCHECKED BUT ALSO OFFERED LITTLE NEW RESTRAINT ON OVERPRODUCTION BY OTHERS THERE IS CONCERN THAT WITH KUWAIT QUOTAFREE THE OTHER MEMBERS WITH SPARE CAPACITY WILL ALSO BOOST THEIR PRODUCTION SAID MERRILL LYNCH'S MR ROTHMAN OPEC'S OUTPUT CEILING FOR THE THIRD QUARTER WAS KEPT AT 236 MILLION BARRELS A DAY BUT OPEC'S ACTUAL PRODUCTION IS RUNNING ABOVE 24 MILLION BARRELS A DAY NORMALLY DEMAND FOR OPEC OIL WOULD RISE IN THE THIRD QUARTER AS OIL COMPANIES BUILD UP INVENTORIES IN PREPARATION FOR THE HIGHUSE PERIOD OF THE WINTER MONTHS OVER THE PAST FEW YEARS SUCH INVENTORY ADDITIONS HAVE TOTALED AS MUCH AS 700000 BARRELS A DAY BUT THIS YEAR THE OIL COMPANIES MAY POSTPONE THEIR STOCKPILING BECAUSE OF EXPECTED LOWER PRICES LATER THE PROSPECT OF RISING OPEC SUPPLIES OVER COMING MONTHS IS KEEPING REFINER BUYING IN CHECK REPORTED THE ENERGY COMPASS A LONDON PUBLICATION ALL IN OPEC ARE AWARE OF THEIR CREDIBILITY PROBLEM ALSO ALL WANT HIGHER OIL PRICES AS A RESULT LEADING OPEC MINISTERS ALREADY ARE TALKING OF STEPS TO TRY TO AVOID A PRODUCTION FREEFORALL UNTIL PETROLEUM DEMAND STRENGTHENS LATER THIS YEAR JEAN PING GABON'S OIL MINISTER AND OPEC'S PRESIDENT SAID LAST WEEK THAT THE 12MEMBER NATIONS WILL DO WHATEVER IS NECESSARY TO HALT ANY FURTHER OILPRICE DECLINES WE HAVE BEEN MONITORING THE MARKET VERY CLOSELY INDEED MR PING SAID WE SHALL NOT HESITATE TO TAKE ACTION IF WE DEEM IT NECESSARY LOOKING AHEAD TO OTHER COMMODITY MARKETS THIS WEEK THE RAINDELAYED PLANTING SEASON WILL CONTINUE TO DOMINATE THE SOYBEAN MARKET THIS WEEK WITH PLANTING TIME RUNNING OUT AND FIELDS STILL TOO MUDDY FOR TRACTORS SOME FARMERS IN EASTERN NEBRASKA SOUTHWEST MINNESOTA AND NORTHERN IOWA ARE RESORTING TO SEEDING THEIR LAND FROM HELICOPTER AIR SEEDING IS USED BY WHEAT FARMERS IN THE SOUTHERN PLAINS BUT THE MOVE IS A SIGN OF DESPERATION IN THE MIDWEST GRAIN BARGE TRAFFIC ON THE MISSISSIPPI RIVER WAS JAMMED FRIDAY WHEN FLOODING CLOSED LOCKS AND DAMS ALONG IOWA AND MISSOURI EXCESSIVE RAINFALL THIS MONTH IS ALSO PLAYING HAVOC WITH PLANTING AND HARVEST FORECASTS AFTER THE CLOSE OF TRADING WEDNESDAY THE AGRICULTURE DEPARTMENT IS SLATED TO RELEASE A PLANTING ACREAGE ESTIMATE BASED ON SURVEYS EARLIER IN JUNE THE DEPARTMENT IS WIDELY EXPECTED TO ESTIMATE THAT US SOYBEAN FARMERS ARE PLANTING ABOUT 605 MILLION ACRES BUT SOME ANALYSTS SAY THAT RAINS SINCE THE SURVEY HAVE PROBABLY REDUCED PLANTING INTENTIONS BY ROUGHLY ONE MILLION ACRES DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO CHICAGO SAID HE WILL PROBABLY TRIM HIS SOYBEAN SEEDING ESTIMATE OF 593 MILLION ACRES BY AS MUCH AS 400000 ACRES IF THE RAIN PERSISTS THE MAJOR FARM STATES ARE SLATED TO RELEASE THEIR WEEKLY PLANTING PROGRESS REPORTS AFTER THE CLOSE OF TRADING TODAY THE NATIONAL WEATHER SERVICE TOMORROW WILL RELEASE ITS 30DAY FORECAST THE FORECAST WILL COVER THE PERIOD IN WHICH MIDWEST WEATHER HAS THE BIGGEST IMPACT ON POTENTIAL CORN YIELDS 9306280118 930628 DESPITE COAL STRIKE ILLINOIS CENTRAL SEES ROBUST QUARTER YEAR SPECIAL TO THE WALL STREET JOURNAL NEW YORK A STRIKE AGAINST COALMINING COMPANIES THAT DO BUSINESS WITH ILLINOIS CENTRAL CORP WILL SHAVE SEVERAL PENNIES OFF SECONDQUARTER EARNINGS ALTHOUGH THE RAILROAD STILL EXPECTS COMFORTABLY TO SURPASS YEARAGO RESULTS ILLINOIS CENTRAL CHIEF FINANCIAL OFFICER DALE W PHILLIPS SAID HE FEELS PRETTY GOOD ABOUT ANALYSTS' SECONDQUARTER EARNINGS ESTIMATE OF 46 CENTS A SHARE CITING IMPROVEMENTS IN GRAIN AND CHEMICAL TRAFFIC IN THE YEAREARLIER PERIOD THE COMPANY EARNED 40 CENTS A SHARE ON REVENUE OF 1299 MILLION ILLINOIS CENTRAL'S COALCAR LOADINGS ARE OFF 15 TO 20 THIS QUARTER FOLLOWING THE WALKOUTS WHICH BEGAN MAY 10 BY THE UNITED MINE WORKERS UNION AT SELECTED INDIANA ILLINOIS WEST VIRGINIA PENNSYLVANIA OHIO AND KENTUCKY MINES FOR 1993 MR PHILLIPS SAID THE COMPANY IS ON TRACK TO HIT ANALYSTS' EARNINGS ESTIMATES OF 216 A SHARE LAST YEAR THE COMPANY HAD PERSHARE NET OF 183 EXCLUDING SPECIAL ITEMS HOWEVER IF THE COAL STRIKE CONTINUES THROUGH THE END OF THE THIRD QUARTER HE SAID IT WOULD COST THE COMPANY ANOTHER FOUR TO FIVE CENTS A SHARE COALINDUSTRY CONTACTS EXPECT THE STRIKE TO LAST FROM THREE MONTHS TO A YEAR DESPITE A SOMEWHAT WEAK EXPORT MARKET CHICAGOBASED ILLINOIS CENTRAL'S GRAIN TRAFFIC IS RUNNING 15 TO 20 AHEAD OF LAST YEAR AND CHEMICALCAR LOADINGS ARE UP 5 TO 8 IN THE SECOND QUARTER THE COMPANY EXPECTS SECONDQUARTER INTERMODAL OR TRUCKANDRAIL BUSINESS TO BE RELATIVELY FLAT FROM LAST YEAR'S QUARTER ILLINOIS CENTRAL THIS YEAR HAS ENTERED SEVERAL NEW PARTNERSHIPS WITH TRUCKING COMPANIES AND IS ALSO WORKING ON AT LEAST TWO OR THREE OTHER MAJOR INTERMODAL PROPOSALS ONE OF WHICH IS WITH ANOTHER RAILROAD MR PHILLIPS SAID HE EXPECTS THE DEALS TO BE CONCLUDED IN THE NEXT FEW WEEKS NONE OF THE NEW ARRANGEMENTS HOWEVER WILL BE REFLECTED IN SECONDQUARTER NUMBERS HE SAID LAST WEEK THE COMPANY ANNOUNCED IT WAS CREATING A SEPARATE BUSINESS UNIT FOR INTERMODAL OPERATIONS COMBINING MARKETING AND OPERATING FUNCTIONS 9306280117 930628 FOREIGN EXCHANGE DOLLAR EUROPEAN CURRENCIES MAY FACE MORE PRESSURE AMID FOCUS ON TRADE BY THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK A RENEWED FOCUS ON TRADE PROBLEMS INVOLVING JAPAN SPELLS BAD NEWS FOR THE DOLLAR AND EUROPEAN CURRENCIES ESPECIALLY THE MARK AGAINST THE YEN ANALYSTS CONTEND EVIDENCE OF THE JAPANESE CURRENCY'S STRENGTH ABOUNDED ON FRIDAY THE DOLLAR FELL TWOANDAHALF YEN TO 10620 YEN BY THE END OF THE SESSION IN NEW YORK THE MARK SET A POSTWORLD WAR II RECORD LOW FALLING MORE THAN ONE YEN TO 6232 YEN IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 17055 MARKS DOWN FROM 17073 LATE THURSDAY ABOUT MIDDAY MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 10584 YEN AND AT 17120 MARKS THE JAPANESE CURRENCY'S RESURGENCE IS A SHARP REVERSAL FROM THE PRIOR WEEK AND A HALF WHEN THE YEN TUMBLED AS THE RULING LIBERAL DEMOCRATIC PARTY BEGAN TO LOSE ITS GRIP ON POWER DURING THAT PERIOD THE DOLLAR HAD RISEN TO AROUND 112 YEN FROM A RECORD LOW OF 10510 YEN SET JUNE 14 BY FRIDAY HOWEVER MOST OF THE GAINS HAD BEEN ERASED AS CURRENCY TRADERS CAME TO GRIPS WITH THE NEW JAPANESE POLITICAL LANDSCAPE BARRING AN UNEXPECTED TURN OF EVENTS THE POLITICAL CRISIS IN JAPAN HAS REALLY BEEN FULLY DISCOUNTED SAID DAVE GILMORE FOREIGN EXCHANGE ANALYST AT MCM CURRENCYWATCH AS A RESULT THE MARKET'S ATTENTION QUICKLY RETURNED TO WHAT HAD BEEN DRIVING THE YEN HIGHER FOR MONTHS TRADE POLICY THE US IS CONTINUING TO TALK THE YEN HIGHER AS A WAY OF FORCING THE JAPANESE GOVERNMENT TO MOVE IN FASTER IN DEALING WITH THE COUNTRY'S TRADE SURPLUS ANALYSTS SAID THE JAWBONING CONTINUES DESPITE PROTESTS BY JAPANESE OFFICIALS FRIDAY FOR EXAMPLE AT JUST ABOUT THE SAME TIME A SENIOR OFFICIAL OF JAPAN'S TRADE MINISTRY WAS CALLING THE YEN'S RISE OVER RECENT WEEKS VERY WORRYING US TREASURY UNDERSECRETARY LAWRENCE SUMMERS HAD JUST FINISHED TELLING AN AUDIENCE THAT THE JAPANESE TRADE SURPLUS WAS THE KEY FACTOR TO KEEP IN MIND WHEN CONSIDERING EXCHANGE RATE DEVELOPMENTS THE POLITICAL TURMOIL IN JAPAN MAKES IT MORE LIKELY THAT THE US IS GOING TO PUSH FOR A STRONGER YEN SAID GEOFFREY DENNIS AN ECONOMIST AT JAMES CAPEL & CO ANALYSTS SEE LITTLE ROOM FOR THE DOLLAR TO IMPROVE SOON IF ANYTHING THEY SAID THE YEN COULD APPRECIATE A BIT MORE RISK REWARD CLEARLY FAVORS BUYING THE YEN AGAINST THE DOLLAR SAID JOHN ROTHFIELD CURRENCY ANALYST AT FIRST NATIONAL BANK OF CHICAGO THE DOLLAR IS GOING TO DRIFT TOWARD 105 YEN AGAIN BUT EVEN AT 105 YEN BUYERS ARE BREATHING RAREFIED AIR AND THE JAPANESE CURRENCY IS QUITE OVERVALUED ANALYSTS CONTEND SO WHILE TRADERS WITH A SHORTER TIME HORIZON SHOULD CONTINUE TO BET ON YEN STRENGTH LONGTERM INVESTORS SHOULD BE STOCKING UP ON DOLLARS ARGUED MCM'S MR GILMORE WE COULD SEE 100 YEN THAT'S IN THE BACK OF EVERYONE'S MIND MR GILMORE SAID BUT LONGERTERM INVESTORS WILL BE VERY ANXIOUS TO BUY ANY DOLLARS THEY CAN THEY'RE CHEAP UNDER 110 YEN AND THEY'RE EXTREMELY CHEAP AT 100 YEN THE YEN IS LIKELY TO CONTINUE TRAMPLING EUROPEAN CURRENCIES ANALYSTS SAID THE YEN HAS ALREADY POSTED IMPRESSIVE GAINS AGAINST THE MARK APPRECIATING FROM AROUND 77 YEN AT THE START OF THE YEAR TO 71 YEN IN EARLY MAY AND THEN TO FRIDAY'S RECORD OF ONLY 6220 YEN TO THE MARK ASIDE FROM THE BOUNCE ON THE JAPANESE POLITICAL CRISIS MARKYEN HAS BEEN THE MOST CONSISTENT ONEWAY TRADE YOU COULD BET YOUR MONEY ON MR GILMORE SAID NOT ONLY ARE EUROPEAN CURRENCIES SUFFERING FROM ECONOMIC RECESSION AND EXPECTATIONS OF LOWER INTEREST RATES BUT JAPAN CONTINUES TO RUN LARGE TRADE SURPLUSES ON THE CONTINENT AS A RESULT THE YEN'S RISE AGAINST EUROPEAN CURRENCIES IS LIKELY TO CONTINUE ANALYSTS SAID MR DENNIS AGREED THAT THERE WAS MORE ROOM FOR THE MARK TO SLIDE AGAINST THE JAPANESE CURRENCY UNIT I THINK WE'RE GOING TO TEST 60 YEN HE SAID 9306280116 930628 ABREAST OF THE MARKET MUTUAL FUNDS COULD SMOOTH STOCK MARKET'S SWINGS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL WHEN TROUBLE COMES TO THE STOCK MARKET WILL THE HUNDREDS OF THOUSANDS OF NEW MUTUAL FUND INVESTORS STAND STALWART OR WILL THEY BOLT WITH MUTUAL FUNDS PLAYING A LARGE AND INCREASING ROLE IN THE STOCK MARKET THE ANSWER TO THAT QUESTION WILL HELP TO DETERMINE JUST HOW BAD THE NEXT CORRECTION OR BEAR MARKET IS ALTHOUGH SOME ANALYSTS WORRY THAT INDIVIDUAL INVESTORS WILL HEAD FOR THE HILLS AT THE FIRST SIGN OF SERIOUS PROBLEMS MANY EXPERTS ARE CONCLUDING THAT MUTUAL FUNDS WILL BE A SOURCE OF STRENGTH NOT WEAKNESS WHEN PRICES SLUMP MOST PEOPLE ARE USING MUTUAL FUNDS AS LONGTERM SAVINGS VEHICLES SAYS PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES I JUST DON'T THINK THESE PEOPLE WILL PANIC EN MASSE AND CREATE A CRASH ACCORDING TO THE INVESTMENT COMPANY INSTITUTE TOTAL ASSETS IN EQUITY MUTUAL FUNDS HAVE MUSHROOMED TO 541 BILLION IN APRIL FROM 2259 BILLION IN OCTOBER 1990 THE START OF THE BULL MARKET THOUGH STILL LAGGING BEHIND PENSION FUNDS MUTUAL FUNDS ARE BUILDING ASSETS IN STOCKS AT A FASTER PACE AND BOOSTING THEIR CLOUT IN THE STOCK MARKET ACCORDING TO BIRINYI ASSOCIATES MUTUAL FUNDS NOW ACCOUNT FOR ABOUT THE EQUIVALENT OF 30 TO 35 OF DAILY NEW YORK STOCK EXCHANGE TRADING VOLUME COMPARED WITH ABOUT 10 AT THE BEGINNING OF THE 1980S THOSE STATISTICS LEAD MELISSA R BROWN DIRECTOR OF QUANTITATIVE RESEARCH AT PRUDENTIAL SECURITIES TO THE CONCLUSION THAT MUTUAL FUNDS ARE FUNCTIONING MUCH LIKE THE BALLAST THAT KEEPS SHIPS AT SEA STABLE IF MONEY FLOWS OUT OF FUNDS IT COMES OFF A BIGGER BASE NOW MS BROWN SAYS THAT MAKES THE MARKET LESS VOLATILE WHAT'S MORE MUTUAL FUNDS TEND TO MAINTAIN SUBSTANTIAL CASH RESERVES TO COVER POSSIBLE REDEMPTIONS CASH LEVELS IN APRIL STOOD AT A LOFTY 103 OF ASSETS THE HIGHEST LEVEL SINCE FEBRUARY 1991 MS BROWN SAYS THE LARGE CASH RESERVES WILL PROVIDE A CUSHION SHOULD STOCK PRICES BEGIN TO FALL INSTEAD OF SELLING STOCKS TO MEET INVESTOR REDEMPTIONS MUTUAL FUND MANAGERS CAN DIP INTO THEIR CASH THUS NOT EXACERBATING ANY SLIDE MS BROWN ADDS THAT SINCE THE STOCK MARKET CRASH IN 1987 INDIVIDUAL INVESTORS HAVE LEARNED THE FUNDAMENTAL LESSON OF STOCK INVESTING BUY ON PRICE DECLINES NOW SHE SAYS MUTUAL FUND BUYERS ARE LIKELY TO SEARCH FOR BARGAINS DURING A DOWNTURN WHICH WILL PROVIDE SUPPORT FOR THE MARKET PEOPLE ARE BECOMING MORE SOPHISTICATED MS BROWN SAYS THEY KNOW THEY'RE BETTER OFF TO BUY WHEN PRICES ARE LOW SO THEY KEEP INVESTING WHETHER THE MARKET IS UP OR DOWN WHILE THE OVERALL MARKET MAY BE SPARED FROM A MUTUAL FUND TROUNCING SOME SECTORS AND INDIVIDUAL STOCKS AREN'T USUALLY AS LUCKY ANALYSTS SAY THE INVESTING STYLE OF MUTUAL FUND MANAGERS HAS BEEN BLAMED FOR THE PUMMELING OF STOCKS SUCH AS PHILIP MORRIS AND INTERNATIONAL BUSINESS MACHINES AT THE FIRST WHIFF OF TROUBLE AT A COMPANY OR IN A SECTOR MUTUAL FUND MANAGERS SWAMP THE STOCKS WITH SELL ORDERS LASZLO BIRINYI OF BIRINYI ASSOCIATES IN GREENWICH CONN POINTS OUT THAT MUTUAL FUND MANAGERS ARE DRIVEN TO MOVE SWIFTLY BY THE STIFF COMPETITION FOR STRONG PERFORMANCE IT'S A BUSINESS DECISION THAT REQUIRES THEM TO DO WELL TO GARNER MORE ASSETS MR BIRINYI SAYS THE IMPACT IS THAT WHEN A COMPANY STUBS ITS TOE IT ENDS UP FALLING FLAT ON ITS FACE I ATTRIBUTE A LOT OF THAT TO MUTUAL FUNDS BUT ANALYSTS SAY A VICIOUS AND SWIFT ROTATION AMONG STOCKS AND SECTORS ISN'T NECESSARILY BAD IT NEED NOT BE HARMFUL TO THE MARKET OR THE ECONOMY SAYS JACOB DREYER CHIEF ECONOMIST AT THE INVESTMENT COMPANY INSTITUTE A NATIONAL ASSOCIATION OF THE MUTUAL FUND INDUSTRY IT IMPROVES THE EFFICIENCY OF THE ALLOCATION OF FINANCIAL CAPITAL AND WHILE THE INVESTING STRATEGY OF MUTUAL FUND MANAGERS MAY BEAT UP SOME STOCKS IT BODES WELL FOR SMALLER CAPITALIZATION STOCKS OVER THE LONG TERM AS THE ROLE OF MUTUAL FUNDS IN THE STOCK MARKET INCREASINGLY CHALLENGES THAT OF PENSION FUNDS MORE MONEY IS EXPECTED TO FLOW INTO STOCKS OF SMALLER COMPANIES THERE'S REASON TO BELIEVE THAT SMALLCAP AND MIDCAP STOCKS WILL DO BETTER OVER THE LONGER TIME FRAME BECAUSE MUTUAL FUND MANAGERS TEND TO BE A LITTLE MORE AGGRESSIVE SAYS JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ THEY BUY FEWER OF THE TOP 40 GROWTH STOCKS THAN PENSION FUNDS TEND TO OWN ICI'S MR DREYER ADDS WITHOUT MUTUAL FUNDS MANY SMALL COMPANIES WOULD NOT BE ABLE TO ISSUE NEW STOCK THE ONLY REASON THEY CAN IS BECAUSE THEIR SHARES BECOME PART OF A BROADER PORTFOLIO IN A MUTUAL FUND WHERE THE RISK IS DIVERSIFIED NONETHELESS MANY ANALYSTS ARE KEEPING A CLOSE EYE ON THE DIRECTION OF INTEREST RATES IT WAS THE BIG DROP IN RATES DURING THE PAST FEW YEARS THAT DROVE MANY INVESTORS OUT OF SAFE FIXEDINCOME INVESTMENTS AND INTO THE STOCK MARKET MANY OF THOSE INVESTORS MAY NOT PROVE AS STEELY AS SOME THINK IF INTEREST RATES RISE TO ATTRACTIVE LEVELS SAYS MR MCALINDEN AS INTEREST RATES TICK UP ALL THESE PEOPLE WHO RUSHED IN MAY RUSH OUT AGAIN HE SAYS IN TWO PREVIOUS PERIODS OF FALLING STOCK PRICES MUTUAL FUND INVESTORS DID TURN SOUR ON STOCK FUNDS AND SWITCHED LARGE AMOUNTS OF MONEY INTO BOND AND MONEY MARKET FUNDS ANALYSTS WHO LOOK FOR MUTUAL FUNDS TO SUPPORT THE MARKET IN ANY FUTURE CORRECTIONS POINT OUT THAT INTEREST RATES WERE MUCH HIGHER DURING THOSE EARLIER PERIODS WHICH MADE ALTERNATIVE INVESTMENTS MORE ATTRACTIVE ALSO THEY SAY THE FLOWS OF CASH OUT OF STOCK FUNDS SOON REVERSED NONETHELESS DURING THE MARKET SLUMP FROM JULY TO OCTOBER 1990 NET NEW CASH FLOWS DECLINED 32 BILLION IN THE DOWNTURN FROM SEPTEMBER 1987 TO DECEMBER 1987 THE FLOWS FELL 72 BILLION MR MCALINDEN BELIEVES THAT ANY RENEWED EXODUS WILL LIKELY BE TEMPORARY AGAIN NET MONEY FLOWS INTO MUTUAL FUNDS WILL TURN NEGATIVE FOR A WHILE BUT THAT WILL BURN ITSELF OUT AND WE'LL GO INTO A MORE NORMAL PATTERN WHERE MOST OF THE MONEY STAYS IN THE MARKET HE SAYS STOCKS INCHED HIGHER ON STRENGTH FROM THE BOND MARKET THE DOW JONES INDUSTRIAL AVERAGE ROSE 028 TO 349089 STANDARD & POOR'S 500STOCK INDEX GAINED 098 TO 44760 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED UP 060 TO 24720 ADVANCING ISSUES OUTPACED DECLINERS 1076 TO 767 TRADING ON THE BIG BOARD TOTALED 205828460 SHARES DOWN FROM 260839400 THURSDAY WORLDWIDE STOCK PRICES ROSE THE DOW JONES WORLD STOCK INDEX GAINED 096 TO 10574 FOR THE WEEK THE DOW JONES INDUSTRIALS LOST 01 THE S&P 500 GAINED 09 AND THE BIG BOARD'S COMPOSITE INDEX ROSE 09 ECONOMIC NEWS FRIDAY WAS UPBEAT AFTER SEVERAL DAYS OF DISAPPOINTING REPORTS THE NATIONAL ASSOCIATION OF REALTORS SAID SALES OF EXISTING SINGLEFAMILY HOMES JUMPED 46 IN MAY FROM APRIL THE LARGEST GAIN SINCE DECEMBER BUT ON THE EARNINGS FRONT THE NEWS WAS LESS ENCOURAGING HERSHEY FOODS SAID ITS EARNINGS FROM OPERATIONS IN THE SECOND QUARTER MAY BE FIVE CENTS TO 10 CENTS A SHARE BELOW THE 34 CENTS IT POSTED A YEAR AGO THE COMPANY'S STOCK SLID 2 3/8 TO 47 1/8 HERSHEY'S TROUBLES FOLLOWED CAUTIONARY PROFIT PROJECTIONS EARLIER IN THE WEEK FROM KMART AND CHEMICAL WASTE MANAGEMENT BOTH OF WHOSE STOCKS TUMBLED ON THE NEWS NORTHERN TELECOM ALSO EXPECTS POOR RESULTS THE CANADIAN COMMUNICATIONS COMPANY PREDICTED A LOSS FOR THE SECOND QUARTER AND A SHARP DROP IN EARNINGS FOR ALL OF 1993 ITS STOCK WAS UP 3/8 TO 37 BEFORE IT WAS HALTED FOR THE NEWS THE SHARES DIDN'T RESUME TRADING FRIDAY VARITY CORP SANK AFTER A BEAR STEARNS ANALYST DOWNGRADED THE STOCK TO HOLD FROM STRONG BUY SHARES OF THE AUTO PARTS AND INDUSTRIAL MACHINERY MAKER FELL 1 1/2 TO 32 DEAN WITTER DISCOVER JUMPED 1 1/8 TO 36 1/4 AFTER THE MARKET CLOSED THURSDAY STANDARD & POOR'S CONFIRMED THAT THE BROKERAGE AND CREDIT CARD COMPANY'S STOCK WILL BE ADDED TO THE S&P 500STOCK INDEX NEXT MONTH THE STOCK JUMPED 1 1/4 THURSDAY ON WHAT OBSERVERS SAID WERE RUMORS ABOUT THE MOVE STOCKS OFTEN RALLY WHEN THEY ARE ADDED TO THE INDEX BECAUSE OF BUYING FROM PENSION AND MUTUAL FUNDS WHOSE INVESTMENT OBJECTIVE IS TO MATCH THE PERFORMANCE OF THAT BENCHMARK INDEX STANDARD BRANDS PAINT JUMPED 1 1/2 TO 4 7/8 THE COMPANY DENIED A REQUEST FROM THE NEW YORK STOCK EXCHANGE THAT IT ISSUE A STATEMENT ON WHETHER THERE WERE ANY CORPORATE DEVELOPMENTS TO EXPLAIN THE MOVE DIAGNOSTEK GAINED 1 TO 8 7/8 THE COMPANY WHICH SELLS PRESCRIPTION DRUGS BY MAIL ALSO DENIED A BIG BOARD REQUEST TO COMMENT DIAGNOSTEK SAID IT HAD A POLICY AGAINST RESPONDING TO INQUIRIES ABOUT STOCK MARKET ACTIVITY STANLEY WORKS FELL FOR A SECOND DAY LOSING 2 1/4 TO 39 5/8 IT DECLINED 3 1/2 THURSDAY AFTER SAYING ITS SECONDQUARTER NET INCOME WILL LIKELY FALL BELOW ITS YEAREARLIER LEVEL 9306280115 930628 CANADA'S NEW PRIME MINISTER HAS TASK OF BOOSTING CONSERVATIVES' POPULARITY BY JOHN URQUHART AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA KIM CAMPBELL CANADA'S FIRST WOMAN PRIME MINISTER HAS TAKEN OFFICE WITH THE TASK OF RESTORING THE PROGRESSIVE CONSERVATIVE PARTY'S POPULARITY BEFORE AN ELECTION THIS FALL MS CAMPBELL WHO IS 46 YEARS OLD WAS SWORN IN AS PRIME MINISTER FRIDAY SUCCEEDING BRIAN MULRONEY WHO RETIRED AFTER HEADING THE CANADIAN GOVERNMENT SINCE SEPTEMBER 1984 MS CAMPBELL A FORMER DEFENSE MINISTER IN MR MULRONEY'S ADMINISTRATION MOVED PROMPTLY TO TRY TO GIVE A NEW LEAN LOOK TO THE GOVERNMENT SHE NAMED A CABINET WITH 25 MEMBERS 10 FEWER THAN IN MR MULRONEY'S LAST CABINET SHE ALSO CUT THE NUMBER OF GOVERNMENT DEPARTMENTS TO 23 FROM 32 SOME BY MERGERS SUCH AS THE ENERGY AND FORESTRY DEPARTMENTS POLITICAL ANALYSTS SAID SUCH CHANGES ARE NEEDED IMMEDIATELY IF THE CAMPBELL ADMINISTRATION IS TO DISTINGUISH ITSELF FROM MR MULRONEY'S UNPOPULAR GOVERNMENT BEFORE THE NEXT ELECTION MS CAMPBELL HAS TO DEMONSTRATE THAT SHE IS TRULY BRINGING CHANGE TO CANADIAN POLITICS AND THE FEDERAL GOVERNMENT SAID DARRELL BRICKER VICE PRESIDENT OF ANGUS REID GROUP INC A PUBLIC OPINION RESEARCH COMPANY OPPOSITION LIBERAL PARTY LEADER JEAN CHRETIEN NOTED THAT ALMOST THREEFOURTHS OF MS CAMPBELL'S CABINET MEMBERS ARE FORMER MULRONEY MINISTERS CANADIANS WANT REAL CHANGE NOT A RESHUFFLING OF THE SAME MULRONEY GANG HE SAID THE LATEST GALLUP POLL SHOWED THE LIBERALS WITH THE SUPPORT OF 41 OF VOTERS CONSERVATIVES WITH 36 THE NEW DEMOCRATIC PARTY WITH 10 AND OTHER PARTIES WITH 13 THE ELECTION HAS TO BE HELD BY NOVEMBER BUT THE DATE HASN'T YET BEEN ANNOUNCED MS CAMPBELL SAID HER GOVERNMENT'S PRIORITIES INCLUDE CLOSING THE DISTANCE BETWEEN CANADIANS AND THEIR GOVERNMENT AND ABOLISHING THE GOVERNMENT'S BUDGET DEFICIT WHICH THIS YEAR IS EXPECTED TO TOTAL 326 BILLION CANADIAN DOLLARS US254 BILLION THE NEW FINANCE MINISTER GILLES LOISELLE SAID HE INTENDS TO REVIEW GOVERNMENT SPENDING IMMEDIATELY WITH A VIEW TO ELIMINATING THE DEFICIT IN FIVE YEARS A TARGET SET BY MS CAMPBELL NO GOVERNMENT PROGRAM IS GOING TO BE PROTECTED FROM MY GAZE HE SAID MR LOISELLE ALSO DECLARED THE CAMPBELL GOVERNMENT'S STRONG SUPPORT FOR THE BANK OF CANADA'S GOAL OF ACHIEVING PRICE STABILITY HE NOTED THAT CANADA HAS ONE OF THE LOWEST INFLATION RATES AMONG MAJOR INDUSTRIAL COUNTRIES AND THAT ITS SHORTTERM INTEREST RATES HAVE FALLEN TO THEIR LOWEST LEVEL IN 20 YEARS IT IS AN OUTSTANDING TESTIMONY TO THE VALUE OF OUR MONETARY POLICY HE SAID THE LIBERAL PARTY HAS CRITICIZED THE BANK OF CANADA'S POLICY CLAIMING THAT THE CENTRAL BANK'S ANTIINFLATION GOAL IS BEING ACHIEVED AT THE COST OF HIGH UNEMPLOYMENT CANADA'S UNEMPLOYMENT RATE IS 114 OF THE WORK FORCE MS CAMPBELL NAMED JEAN CHAREST DEPUTY PRIME MINISTER AND MINISTER OF INDUSTRY AND SCIENCE MR CHAREST WAS MS CAMPBELL'S CHIEF RIVAL IN THE CONTEST TO SUCCEED MR MULRONEY AS CONSERVATIVE PARTY LEADER AND PRIME MINISTER SHE NAMED TOM HOCKIN TRADE MINISTER HE IS A STRONG SUPPORTER OF THE NORTH AMERICAN FREE TRADE AGREEMENT THAT PROVIDES FOR THE REMOVAL OF MOST TRADE BARRIERS AMONG THE US CANADA AND MEXICO CANADA LAST WEEK BECAME THE FIRST COUNTRY TO PASS LEGISLATION TO IMPLEMENT THE ACCORD WHICH IS TO TAKE EFFECT JAN 1 9306280114 930628 GILLETTE TO LAUNCH NEW SENSOR RAZOR IN EUROPE THIS FALL BY JOSEPH PEREIRA STAFF REPORTER OF THE WALL STREET JOURNAL GILLETTE CO SEEKING TO STAY AHEAD IN SHAVING TECHNOLOGY WILL INTRODUCE A SECONDGENERATION VERSION OF ITS POPULAR SENSOR RAZOR THIS FALL IN EUROPE COMPANY SOURCES SAY THE CHIEF ADDED FEATURE OF THE NEW SENSOR IS A THIN STRIP OF RUBBER PLACED ON THE LOWER PART OF THE RAZOR HEAD PURPORTEDLY FOR A CLOSER SHAVE PEOPLE FAMILIAR WITH ITS DESIGN SAY THE NEW SENSOR ALSO HAS A SLIGHTLY WIDER LUBRICATING STRIP MOUNTED OVER THE BLADES A POSSIBLE NAME IS SENSOR EXCEL GILLETTE BASED IN BOSTON IS EXPECTED TO ANNOUNCE THE RAZOR AT A NEWS CONFERENCE IN NEW YORK ON WEDNESDAY COMPANY OFFICIALS DECLINED TO COMMENT ON QUESTIONS ABOUT A NEW SENSOR THE COMPANY HAS SAID THE NEWS CONFERENCE WILL BE ABOUT A BREAKTHROUGH IN SHAVING TECHNOLOGY SOME ANALYSTS HOWEVER QUESTION WHETHER THAT IS THE CASE INSTEAD THE LAUNCH SEEMS TO FOLLOW GILLETTE'S TRADITIONAL PATTERN OF SLIGHTLY MODIFYING ITS MAJOR NEW DESIGNS EVERY COUPLE OF YEARS IN THE PRODUCT CYCLE TO SQUEEZE A LITTLE MORE PROFIT OUT OF RAZOR SALES GILLETTE INSIDERS SAY THE NEW SENSOR BLADES WILL BE PRICED SLIGHTLY HIGHER THAN THE CURRENT ONES COMING UP WITH A NEW AND IMPROVED SYSTEM IS THE BEST WAY TO CONTINUE YOUR MOMENTUM SAYS WILLIAM STEELE ANALYST FOR DEAN WITTER BUT THE LAUNCH OF A SECOND SENSOR WHILE THE FIRST IS SELLING STRONGLY HAS SOME ANALYSTS WONDERING WHY GILLETTE WOULD SPEND MONEY TO FIX SOMETHING THAT ISN'T BROKEN I'M CONFUSED IF YOU DON'T HAVE ANY COMPETITION ON A PRODUCT WHY IMPROVE IT ASKS ANDREW SHORE OF PAINEWEBBER GILLETTE INTRODUCED SENSOR IN 1989 FOLLOWING A DECADE OF 200 MILLION IN RESEARCH AND DEVELOPMENT SPENDING AIMING TO HALT A TREND TOWARD LESS EXPENSIVE DISPOSABLE RAZORS THE STRATEGY WORKED THE MARKET SHARE OF DISPOSABLES HAS DECLINED TO 41 FROM A PEAK OF 49 IN ADDITION PARTLY BECAUSE MACHINERY TO MAKE A SENSORLIKE SYSTEM IS SO COMPLICATED AND EXPENSIVE RIVALS HAVEN'T BEEN ABLE TO COME UP WITH A SIMILAR SYSTEM AS A RESULT SENSOR HOLDS A MARKET SHARE OF 195 THE COMPANY'S CLOSEST COMPETITION IS GILLETTE'S OWN SENSOR SYSTEM FOR WOMEN WITH 37 OF THE MARKET TRACER BY SCHICK TRAILS IN THIRD PLACE AT 3 GILLETTE'S PLAN IS TO START SELLING THE NEW SENSOR IN EUROPE AND BRING THE PRODUCT TO THE US MARKET NEXT YEAR A REVERSAL OF THE WAY MOST OF ITS PRODUCTS HAVE BEEN INTRODUCED PREVIOUSLY COMPANY OFFICIALS SAY THAT PART OF THE REASON IS THAT THE EUROPEAN MARKET IS 20 LARGER THAN THE US THE NEW SYSTEM AT LEAST INITIALLY WILL COMPETE WITH THE ORIGINAL SENSOR WHICH IS NOW AVAILABLE IN MOST MARKETS THROUGHOUT THE WORLD BUT MR STEELE ADDED THAT THE ORIGINAL WILL SLOWLY BE PHASED OUT GILLETTE'S CLOAK OF SECRECY AROUND ITS SENSOR UPGRADE HAS HAD BOTH WALL STREET AND THE MEDIA ABUZZ WITH SPECULATION DETAILS OF THE NEW SENSOR WERE REPORTED ON SATURDAY IN THE BOSTON GLOBE 9306280113 930628 US TO CANCEL SEVERAL NATIONS' DUTY PRIVILEGES BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION SAID IT WILL DROP DUTYFREE PRIVILEGES FROM 12 BILLION IN IMPORTS FROM DEVELOPING COUNTRIES AND REVIEW WORKERS RIGHTS IN SEVERAL NATIONS IN AN EFFORT TO FLEX ITS MUSCLE ON WORLDWIDE LABOR ISSUES THE ACTIONS ARE PART OF AN ANNUAL REVIEW OF THE GENERALIZED SYSTEM OF PREFERENCES A PROGRAM THAT GIVES DUTYFREE STATUS TO CERTAIN PRODUCTS FROM DEVELOPING COUNTRIES AS PART OF ITS REPORT THE ADMINISTRATION SAID IT WILL EXTEND BENEFITS TO 658 MILLION IN IMPORTS THAT OTHERWISE WOULD HAVE LOST THEIR DUTYFREE STATUS EVEN WITH THE ELIMINATION OF PRIVILEGES FOR PRODUCTS RANGING FROM DISHWASHING MACHINE PARTS TO BUFFALO LEATHER AND ANCHOVIES THE AMOUNT OF GOODS QUALIFYING FOR DUTYFREE STATUS ISN'T EXPECTED TO CHANGE FROM LAST YEAR WHEN 167 BILLION OF US IMPORTS GOT THE BENEFIT DUTYFREE STATUS STRIPPED FROM SOME COUNTRIES IS CAPTURED BY OTHERS AND NEW PRODUCTS ARE ADDED TO THE PROGRAM THE ADMINISTRATION SOUGHT IN THIS YEAR'S REVIEW THE FIRST SINCE PRESIDENT CLINTON TOOK OFFICE TO EMPHASIZE THAT THE ISSUE OF WORKERS RIGHTS HAS A GREATER PROMINENCE UNDER THE NEW DEMOCRATIC PRESIDENT US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE ADMINISTRATION WAS GIVING NEW EMPHASIS TO THE WORKERS RIGHTS STANDARD USED TO DETERMINE WHICH COUNTRIES GET DUTYFREE ENTRY OTHER STANDARDS INCLUDE INTELLECTUAL PROPERTY PROTECTION AND MARKET ACCESS THE FIRST TARGET OF THIS STRATEGY IS THE TINY AFRICAN COUNTRY OF MAURITANIA WHOSE DUTYFREE STATUS WAS SUSPENDED OVER WHAT MR KANTOR SAID THE US CONSIDERS PROBLEMS WITH PROTECTION OF WORKERS RIGHTS MR KANTOR SAID THE US WILL START SHORTTERM REVIEWS OF LABOR RIGHTS IN EL SALVADOR GUATEMALA INDONESIA THAILAND MALAWI AND OMAN TO SEE IF DUTYFREE BENEFITS SHOULD CONTINUE AND THE ADMINISTRATION SAID IT IS SERIOUSLY CONCERNED ABOUT INDONESIA'S LABOR STANDARDS INDONESIA'S REVIEW WILL CONTINUE UNTIL FEB 15 1994 BUT THE OTHERS WILL BE COMPLETED BY DEC 15 MANY PRODUCTS LOST DUTYFREE STATUS BECAUSE THEY ARE COMING INTO THE US IN VOLUMES TOO LARGE TO QUALIFY MEXICO FOR INSTANCE WILL LOSE TARIFF EXEMPTIONS ON 459 MILLION IN EXPORTS MALAYSIA INDONESIA AND INDIA ALSO LOST DUTYFREE STATUS ON SUBSTANTIAL AMOUNTS OF GOODS BECAUSE OF RISING SHIPMENTS THE PROGRAM TO GIVE CERTAIN COUNTRIES PREFERENCE BEGAN IN 1976 TO HELP DEVELOPING NATIONS BOOST EXPORTS IT IS DUE TO EXPIRE NEXT YEAR BUT MR KANTOR SAID THE ADMINISTRATION WILL WORK WITH CONGRESS TO EXTEND IT THE GENERALIZED SYSTEM OF PREFERENCES A GOVERNMENT PROGRAM THAT PROVIDES DUTYFREE STATUS TO CERTAIN IMPORTS FROM DEVELOPING COUNTRIES IS SCHEDULED TO EXPIRE JULY 4 AN ARTICLE YESTERDAY INCORRECTLY STATED THE PROGRAM IS SCHEDULED TO LAPSE NEXT YEAR PENDING LEGISLATION WOULD EXTEND THE PROGRAM FOR 15 MONTHS 9306280112 930628 AL LABS RECEIVES CLEARANCES FORT LEE NJ AL LABORATORIES INC SAID IT RECEIVED APPROVAL IN THE UK AND SWEDEN TO MAKE AND MARKET ELYZOL DENTALGEL ITS PATENTED GELMATRIX PRODUCT FOR THE TREATMENT OF THE PERIODONTITIS THE COMPANY SAID IT PLANS TO BEGIN MARKETING THE GUMDISEASE PRODUCT IN THE TWO COUNTRIES IN THE THIRD QUARTER OF 1993 WITH IMMEDIATE PREMARKETING ACTIVITIES AND INVESTMENTS 9306280111 930628 BUSINESS BRIEF INTERMARK INC CONCERN SAYS IT HAS MERGED INTO TRITON GROUP SUBSIDIARY INTERMARK INC SAN DIEGO SAID IT ENACTED ITS BANKRUPTCY REORGANIZATION PLAN BY MERGING ITSELF INTO ITS TRITON GROUP LTD UNIT AND PREPARING TO DISTRIBUTE STOCK IN THE NEW COMPANY THE PLAN APPROVED BY A US BANKRUPTCY JUDGE EARLIER THIS MONTH CALLS FOR 99 OF THE COMMON SHARES OF THE NEW ENTITY TRITON TO BE OWNED BY THE HOLDERS OF INTERMARK'S UNSECURED DEBT THE REMAINING 1 WOULD BE HELD BY INTERMARK'S EQUITY HOLDERS THE COMPANY SAID IT EXPECTS TO DISTRIBUTE TRITON SHARES AND WARRANTS BY JULY 31 WITH THE NEW TRITON STOCK TO BEGIN TRADING ON THE AMERICAN STOCK EXCHANGE TODAY THE COMPANY SAID IT PLANS NEXT MONTH TO DISTRIBUTE ABOUT 90 OF THE 20 MILLION NEW SHARES AND THE 813470 NEW WARRANTS WITH THE REMAINDER TO BE HELD BACK PENDING CERTAIN DISPUTED CREDITOR CLAIMS FILED IN THE BANKRUPTCY REORGANIZATION 9306280110 930628 SAN DIEGO ZOO PLAN FOR LOAN OF PANDAS MAY BE DERAILED INTERIOR SECRETARY ENTERS FRAY OVER PERMIT APPLICATION TSHIRT ORDERS RESTRAINED BY ROY J HARRIS JR STAFF REPORTER OF THE WALL STREET JOURNAL PANDA POLITICS APPEAR TO BE DERAILING THE SAN DIEGO ZOO'S PLAN FOR THE FIRST OF WHAT COULD BE A SERIES OF LONGTERM BREEDING LOANS OF THE ENDANGERED CHINESE ANIMALS TO US ZOOS EVEN WHILE THE INTERIOR DEPARTMENT'S FISH AND WILDLIFE SERVICE IS CONSIDERING THE SAN DIEGO PERMIT APPLICATION WHICH HAS BEEN OPPOSED BY THE WORLD WILDLIFE FUND AND THE HUMANE SOCIETY INTERIOR SECRETARY BRUCE BABBITT ENTERED THE FRAY WITH A HARSHLY WORDED LETTER TO THE ZOO LAST WEEK IN ADDITION TO SAYING HE WAS NOT OPTIMISTIC THAT OUR BIOLOGISTS CAN ISSUE THE PERMIT YOU SEEK HE WARNED THE ZOO NOT TO IMPORT THE PANDAS WITHOUT APPROVAL BECAUSE DOING SO COULD UNDERMINE THE US IN ENDANGEREDSPECIES TREATIES AND RISK VIOLATING SOME OF THE PRINCIPLES FOR WHICH THE SAN DIEGO ZOO IS SO WIDELY RECOGNIZED ASKED WHY THE SECRETARY THOUGHT THE ZOO MIGHT PROCEED WITHOUT A PERMIT AN INTERIOR SPOKESMAN SAID IT'S A SMALL COMMUNITY THE ZOOLOGICAL COMMUNITY AND WE UNDERSTOOD PANDAS WERE ON THEIR WAY TO THE US VERY SOON SOMETIME WITHIN THE NEXT WEEK OR TWO HE SAID MR BABBITT WHO FOLLOWS WILDLIFE CONSERVATION ISSUES CLOSELY WANTED TO SEND A CLEAR SIGNAL THAT A PERMIT WAS NEEDED ZOO EXECUTIVE DIRECTOR DOUGLAS MYERS WROTE THE SECRETARY BACK THAT THE ZOO CANNOT UNDERSTAND WHY ANYONE WOULD REPORT TO YOU THAT SAN DIEGO MIGHT IGNORE THE PERMIT PROCESS THERE IS NO WAY WE WOULD SMUGGLE A PAIR OF PANDAS IN HERE SAID A SPOKESMAN ADDING THAT CHINA ONLY GRANTS EXPORT PERMITS WHEN ZOOS HAVE AN IMPORT PERMIT IN HAND MR MYERS IN AN EMPLOYEE MEMO ALSO DISPUTED MR BABBITT'S STATEMENT THAT IMPORTING TWO WILD PANDAS WILL GENERATE IRRESISTIBLE PRESSURE FOR THE CAPTURE AND EXPORT OF PANDAS FROM CHINA ENVIRONMENTALISTS WORRY THAT CHINA SOMETIMES TAKES WILD ONES FROM AMONG THE 900 OR SO REMAINING UNDER THE GUISE OF RESCUING INJURED ANIMALS BUT MR MYERS ARGUED THAT SAN DIEGO'S DESIGNATED PANDAS SHI SHI AND SHUN SHUN WERE LEGITIMATELY RESCUED AND WEREN'T CANDIDATES FOR A RETURN TO THE WILD ONE ZOO REPRESENTATIVE EVEN HINTED THAT A FEATURE BEING PREPARED FOR ABCTV'S DAY ONE PROGRAM TONIGHT NOTING CONTROVERSY OVER THE ZOO'S THREEYEAR BREEDING ARRANGEMENT WITH CHINA MIGHT BE BEHIND THE SUDDEN GETTOUGHONPANDAS STAND BY MR BABBITT STILL SAN DIEGO ZOO OFFICIALS HOPE TO MEET WITH THE SECRETARY BEFORE THEIR PERMIT CAN BE DENIED TO EXPLAIN THAT THEIR LOAN COULD BENEFIT PANDA REPOPULATION PANDA PERMITS ARE NEARLY ALWAYS CONTROVERSIAL SAID MARSHALL JONES THE FISH AND WILDLIFE OFFICIAL RESPONSIBLE FOR RULING ON SAN DIEGO'S APPLICATION BECAUSE WE'RE DEALING WITH LARGE AMOUNTS OF MONEY INDEED THE ZOO'S PLAN CALLS FOR PAYING CHINA 1 MILLION A YEAR AND 600000 FOR SURVIVING CUBS WHILE THE ZOO WORKS TO EXPAND ITS ALREADY CONSIDERABLE LEVEL OF BREEDING RESEARCH SAN DIEGO WHICH HAS ALREADY SPENT 850000 ON A PANDA ENCLOSURE AND ORDERED NUMEROUS ITEMS FOR SALE IN A NEWLY BUILT PANDA STORE EXPECTS SHARP INCREASES IN REVENUE WHEN THE PANDAS ARRIVE IT SET ATTENDANCE RECORDS IN 1988 ITS LAST SHORTTERM PANDA EXHIBITION IN THE PROCESS SELLING 400000 PANDA TSHIRTS AFTER A CONTROVERSIAL ROUND OF PANDA LOANS BACK THEN WHICH WERE FOR EXHIBITION RATHER THAN BREEDING PURPOSES THE US AND THE 161MEMBER AMERICAN ASSOCIATION OF ZOOLOGICAL PARKS AND AQUARIUMS SLAPPED ON MORATORIUMS WHICH NOW HAVE EXPIRED FOR A TIME THE COLUMBUS OHIO ZOO WAS KICKED OUT OF THE ASSOCIATION FOR A LOAN ASSISTED BY GEORGE BUSH WHEN HE WAS VICE PRESIDENT THAT VIOLATED ITS MORATORIUM THE ASSOCIATION TREADS SOFTLY IN THE CURRENT DEBATE SUPPORTING SAN DIEGO'S APPLICATION AND ENCOURAGING ZOOS THAT HAVE EXPRESSED INTEREST IN THE PANDABREEDING LOANS BUT ADMITTING THAT FURTHER STUDY OF CHINA'S POLICIES IS NEEDED BUT GEORGE SCHALLER AUTHOR OF THE INFLUENTIAL BOOK THE LAST PANDA SHARPLY CRITICIZES SAN DIEGO FOR NEGOTIATING ITS LOAN DURING THE MORATORIUMS AND HAS ACCUSED THE ZOO OF GREEDINESS HE SAYS PANDA BREEDING RESEARCH IS BETTER DONE AMONG THE LARGE CHINESE CAPTIVE POPULATION AS FOR THE NONPROFIT SAN DIEGO ZOO IT FEELS FORTUNATE AT LEAST TO HAVE HELD BACK ON NONCANCELLABLE ORDERS FOR TSHIRTS AND OTHER SOUVENIRS IN RECENT WEEKS ONLY ABOUT 110000 OF CUDDLY BLACK AND WHITE STUFFED BEARS WERE STOCKED IN ANTICIPATION OF THE PANDAS' ARRIVAL WHICH SOME HAD EXPECTED BY THE END OF THIS MONTH WE'LL MAINLY BE STUCK HOLDING SOME PANDA PLUSH IF THE LOAN FALLS THROUGH SAID THE ZOO'S SPOKESMAN 9306280109 930628 OTS NOTES JUMP IN S&LS' SWITCH TO STATE BANKS BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONVERSION OF A RISING NUMBER OF THRIFT INSTITUTIONS TO STATECHARTER SAVINGS BANKS IS A LEADING FACTOR IN THE DECLINE IN THE NUMBER OF THRIFTS REGULATED BY THE OFFICE OF THRIFT SUPERVISION THE AGENCY'S DEPUTY CHIEF COUNSEL SAID THE SAVINGSANDLOAN ASSOCIATIONS THAT ARE SWITCHING SEEK MOSTLY TO AVOID THE EXAMINATION AND OTHER FEES CHARGED BY THE OTS SAID THE COUNSEL GERARD COMIZIO IN AN INTERVIEW NO SUCH FEES WERE COLLECTED BEFORE THE OTS WAS CREATED BY A 1989 LAW BUT THE OTS LIVES BY ASSESSMENTS HE SAID THE FEES ARE HIGHER THAN THOSE CHARGED BY STATE REGULATORS HE SAID FOR EXAMPLE ONE BIG NEW YORK S&L IS PAYING ABOUT 100000 A YEAR TO THAT STATE'S REGULATORY AGENCY ALMOST 50 LESS THAN COMPARABLE OTS FEES IN SWITCHING TO A STATE SAVINGS BANK CHARTER THEY ESSENTIALLY DEEPSIX THE OTS AS ONE OF THEIR REGULATORS MR COMIZIO SAID BESIDES HIGHER FEES OFTENTOUGHER OTS SUPERVISION AND LOCAL REGULATORS' ASSERTIONS THAT THEY ARE IN TUNE WITH THE PROBLEMS OF S&L EXECUTIVES ALSO MAY BE FACTORS IN THE CHARTER SWITCHING HE SAID OTS FIGURES SHOW THAT THE NUMBER OF THRIFT CONVERSIONS TO STATE CHARTERS CLIMBED FROM 18 IN 1990 TO 43 IN 1991 AND TO 108 IN 1992 SO FAR THIS YEAR THE OTS COUNTS 55 MORE CONVERSIONS WITH ANOTHER 33 APPLICATIONS PENDING WE WERE ASLEEP AND HADN'T ANTICIPATED THIS MAJOR SHIFT TO STATE CHARTERS SAID JONATHAN FIECHTER THE ACTING OTS DIRECTOR OVERALL THE NUMBER OF OTSREGULATED INSTITUTIONS HAS BEEN DROPPING ABOUT 200 PER YEAR BESIDES CHARTER CONVERSIONS A NUMBER OF THRIFTS ARE DISAPPEARING TO MERGERS AND LIQUIDATIONS SOME BANKS ARE SAYING THAT THRIFTS ARE FANTASTIC BUYS RIGHT NOW MR FIECHTER SAID NOTING THAT THEIR BUSINESS PROSPECTS ARE IMPROVING BUT THAT THEY STILL CAN BE BOUGHT CHEAPLY THE TOTAL NUMBER OF PRIVATE OTSREGULATED THRIFTS DECLINED TO 1802 AS OF MARCH 31 FROM 2064 A YEAR EARLIER THE THRIFTS' AVERSION TO THE OTS FEES CONTINUES DESPITE ATTEMPTS BY THE AGENCY TO REDUCE ITS REGULATORY ACTIVITY AND HOLD FEE INCREASES DOWN MR COMIZIO SAID FEES ROSE 5 IN JANUARY 1992 AND 4 IN JANUARY OF THIS YEAR MEANWHILE THE OTS STAFF IS PROJECTED TO DECLINE TO 2119 AT THE END OF THIS YEAR FROM 3389 AT THE CLOSE OF CALENDAR 1989 9306280108 930628 BROADCASTING FIFTH NETWORK SPARKS INTEREST OF TV INDUSTRY BY ELIZABETH JENSEN AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK JUST A FEW YEARS AGO BROADCASTERS SNICKERED AT FOX INC'S BOLD PLAN TO FORM A FOURTH TV NETWORK NOW A NUMBER OF POWERFUL INDUSTRY PLAYERS ARE CONSIDERING A FIFTH NETWORK AND MAYBE MORE IN RECENT MONTHS SOME OF THE BIGGEST BROADCASTING AND ENTERTAINMENT COMPANIES HAVE BEEN EXPLORING HOW TO MELD TV STATION GROUPS PROGRAM PRODUCTION COMPANIES AND CABLE SYSTEMS INTO HYBRID NETWORKS IF SUCCESSFUL A NEW NETWORK WOULD PROVIDE BROADCASTERS WITH A COMPETITIVE EDGE IN THE COMING 500CHANNEL TV MARKET AND ERODE THE VIEWING SHARES OF BOTH FOX AND THE BIG THREE CBS INC CAPITAL CITIES/ABC INC AND GENERAL ELECTRIC CO'S NBC UNIT AMONG COMPANIES SAID TO BE CONSIDERING A FIFTH NETWORK ARE PARAMOUNT COMMUNICATIONS INC WHICH LIKE FOX OWNS BOTH A STATION GROUP AND A MAJOR MOVIE STUDIO AND QVC NETWORK INC RUN BY FORMER FOX INC CHAIRMAN BARRY DILLER MR DILLER IS CAGEY ABOUT HIS PLANS THOUGH HE DOESN'T RULE OUT THE IDEA OF ANOTHER NETWORK THERE ARE POSSIBILITIES FOR ANOTHER PROGRAMMING SERVICE SAYS MR DILLER THE ISSUE FOR A FIFTH NETWORK IS WHAT IS THE IDEA' 'WHAT IS THE VISION' UNLESS YOU CAN FIGURE OUT A PARTICULAR BRAND YOU HAVE NO REASON FOR BEING ONE NETWORK UNDER DISCUSSION PEOPLE FAMILIAR WITH THE TALKS SAY WOULD LINK PARAMOUNT'S STATIONS AND TV PRODUCTION WITH CHRISCRAFT INDUSTRIES INC WHICH CONTROLS A GROUP OF EIGHT STATIONS INCLUDING KEY OUTLETS IN NEW YORK AND LOS ANGELES A THIRD POSSIBLE PARTNER SCI TELEVISION INC A SIXSTATION GROUP CONTROLLED BY INVESTOR RONALD PERELMAN PARAMOUNT CHRISCRAFT AND SCI DECLINE TO DISCUSS THEIR PLANS PARAMOUNT RECENTLY PURCHASED A SEVENTH STATION IN DETROIT A FOX AFFILIATE FOR 100 MILLION BOTH PARAMOUNT AND CHRISCRAFT ARE SAID TO BE CONSIDERING BIDS FOR ONE OR MORE OF THE TV STATIONS IN MIAMI PHILADELPHIA AND THE CHICAGO AREA BEING OFFERED FOR SALE BY COMBINED COMMUNICATIONS INC PARAMOUNT'S PLANS INCLUDING ITS TALKS WITH CHRISCRAFT HAVE BEEN THE SUBJECT OF MARKET SPECULATION RECENTLY WALL STREET HAS BEEN WAITING FOR THE CASHRICH COMPANY TO MAKE A STRATEGIC MERGER OR ACQUISITION AND PEOPLE FAMILIAR WITH THE SITUATION SAY PARAMOUNT HAS HAD EXPLORATORY TALKS OVER THE LAST YEAR WITH A WIDE RANGE OF COMPANIES INCLUDING CHRISCRAFT TURNER BROADCASTING SYTEM INC CAPITAL CITIES VIACOM INC AND TELECOMMUNICATIONS INC PARAMOUNT'S STOCK REACHED A 52WEEK HIGH OF 5575 FRIDAY AS RUMORS PERSISTED THAT THE COMPANY ITSELF MIGHT BE A TAKEOVER TARGET POSSIBLY IN A JOINT BID BY TELECOMMUNICATIONS AND TURNER BUT THERE IS DOUBT ANY HOSTILE BID FOR PARAMOUNT WOULD BE SUCCESSFUL PARTICULARLY BY SUCH DEBTLADEN COMPANIES AS TCI AND TURNER TCI AND TURNER OFFICIALS COULDN'T BE REACHED FOR COMMENT AND PARAMOUNT SAID IT DOESN'T COMMENT ON SPECULATION PRIVATELY PARAMOUNT EXECUTIVES DON'T RULE OUT THE POSSIBILITY OF A FIFTH NETWORK WITH THE MAJOR BROADCAST NETWORKS INCREASINGLY PRODUCING THEIR OWN TV SHOWS INSTEAD OF BUYING THEM FROM STUDIOS A NEW NETWORK WOULD BE A MAJOR OUTLET FOR PROGRAMS PRODUCED BY THE PARAMOUNT STUDIO STILL PARAMOUNT INSIDERS PLAY DOWN THE LIKELIHOOD OF A MOVE ANYTIME SOON AMONG THE OBSTACLES TO STRINGING TOGETHER THEIR STATIONS IN A NEW NETWORK SOME OF THE STATIONS OWNED BY PARAMOUNT AND CHRISCRAFT ARE ALREADY AFFILIATES OF EXISTING NETWORKS IT WOULD BE VIRTUALLY IMPOSSIBLE TO CREATE A BROADCAST NETWORK INSTANTLY WITH A FULL SEVENDAYAWEEK SCHEDULE WORLDWIDE NEWS GATHERING STAFFS AND MASSIVE ENTERTAINMENT AND SPORTS DIVISIONS FOX A NEWS CORP UNIT ITSELF HAS SUCCEEDED AS THE FOURTH NETWORK BY STARTING WITH ONLY A FEW HOURS OF PROGRAMMING AND GRADUALLY OFFERING SEVEN FULL NIGHTS IT HAS ONLY A LIMITED NEWS DIVISION AND NO SPORTS TO SUCCEED ANY NEW NETWORK WOULD HAVE TO REACH 80 TO 90 OF ALL TV HOUSEHOLDS THAT IS WHY NO STATION GROUP COULD FORM A FIFTH NETWORK ALONE EVEN WITH ALL THEIR STATIONS COMBINED FOR EXAMPLE PARAMOUNT AND CHRISCRAFT ONLY REACH 30 OF THE COUNTRY AND ALIGNING WITH SCI TELEVISION WOULD BRING THEM ONLY TO 40 FEDERAL RULES SAY INDIVIDUAL STATION GROUPS CAN ONLY CONTROL 25 OF THE COUNTRY PARAMOUNT EXECUTIVES OFTEN BOAST THAT THE COMPANY HAS A DE FACTO NETWORK ALREADY WITH THE HIGHLY SUCCESSFUL PROGRAMS IT PRODUCES AND SELLS DIRECTLY TO TV STATIONS SUCH AS TWO STAR TREK SPINOFFS THE UNTOUCHABLES AND ENTERTAINMENT TONIGHT HOWEVER EACH OF THOSE PROGRAMS COULD GET BETTER PROMOTION AND HIGHER AD RATES IF THEY AIRED ACROSS THE COUNTRY AT THE SAME DAY AND TIME EVERY WEEK ON ONE NETWORK CURRENTLY STATIONS INCLUDING SOME NETWORK AFFILIATES PROGRAM THE SHOWS AT VARYING TIMES OBSERVERS SAY THE BEST BET FOR PARAMOUNT IF IT DOES DECIDE TO PURSUE A NEW PROGRAM NETWORK IS A LINK WITH CHRISCRAFT CHRISCRAFT IS ONE OF ONLY TWO STATION GROUPS WHICH HAS BOTH A NEW YORK AND A LOS ANGELES STATION NOT AFFILIATED WITH ANOTHER NETWORK THE OTHER TRIBUNE CO COULD IN THEORY BE A PARTNER FOR PARAMOUNT BUT A COMPANY EXECUTIVE INDICATED TRIBUNE PREFERS TO REMAIN INDEPENDENT FOR NOW AND FOCUS ON LOCAL ADVERTISING OPPORTUNITIES BECAUSE SO MANY STATIONS ARE ALREADY AFFILIATED WITH THE BIG THREE NETWORKS OR FOX SOME ANALYSTS SAY A NEW NETWORK WOULD HAVE TO LINK UP WITH CABLE SYSTEMS IN SOME MARKETS TO REACH 80 OF THE COUNTRY SEVERAL MEDIA OBSERVERS THINK CHRISCRAFT WAS CONSIDERING THAT OPTION WHEN IT RECENTLY SETTLED LONGSTANDING DIFFERENCES WITH TELECOMMUNICATIONS THE NATION'S LARGEST CABLE OPERATOR WITH NEARLY 10 MILLION SUBSCRIBERS AND AGREED TO LET TCI CARRY ITS BROADCAST STATION SIGNALS FOR NO MONEY AND A PROMISE OF FUTURE JOINT BUSINESS VENTURES WE BELIEVE THERE IS STILL ROOM FOR ONE OR TWO MORE FOURTH' NETWORKS IN THE FOX MOLDCOMBO NETWORKS WHICH USE A MIX OF MAJORMARKET INDEPENDENT STATIONS AND CABLE IN AREAS WHERE INDEPENDENTS ARE NOT AVAILABLE SAYS TOM WOLZIEN AN ANALYST AT SANFORD C BERNSTEIN ANOTHER OPTION HE SAYS IS FOR A FIFTH NETWORK TO PERSUADE AFFILIATES TO PREEMPT NETWORK PROGRAMMING BY TARGETING ABC CBS AND NBC ON THEIR WEAKEST NIGHTS AFFILIATES HAVE ALREADY SHOWN AN INCREASING WILLINGNESS TO DO JUST THAT WITH FIRSTRUN SYNDICATED PRODUCTS SUCH AS PARAMOUNT'S STAR TREK DEEP SPACE NINE EXECUTIVES OF THE MAJOR NETWORKS SAY THEY AREN'T WORRIED ABOUT A FIFTH NETWORK THEY NOTE THAT THE ADVERTISING MARKET HAS BEEN TOO SOFT TO SUSTAIN PROFIT GROWTH FOR THE EXISTING NETWORKS BUT SOME ADVERTISERS SAY THEY WOULD WELCOME A NEW NATIONAL NETWORK BACKED BY STATION GROUPS BETSY FRANK SENIOR VICE PRESIDENT AT SAATCHI & SAATCHI ADVERTISING SAYS YOU GET BETTER PROGRAMMING HIGHER QUALITY AND BETTER MAINTENANCE OF WHATEVER YOU BUY WHEN IT IS A DEDICATED STATION LINEUP ALTHOUGH FOX CONTINUES TO STRUGGLE TO FIND HITS AND KEEP ITS RATINGS UP THE FOURTH NETWORK'S ABILITY TO FIND A NICHE HAS SHOWN THAT YOU CAN CLEARLY MAKE MORE MONEY BY HAVING HIGHER QUALITY PROGRAMMING TARGETED TO A SPECIFIC GROUP SAYS MR WOLZIEN OF SANFORD C BERNSTEIN THERE'S CLEARLY VIEWER DEMAND AND IF YOU CAN FIND VIEWERS YOU CAN FIND ADVERTISERS THE KEY IS YOUR COST BASE SUCH THAT WHATEVER ADVERTISING SUPPORT YOU HAVE YOU CAN MAKE MONEY ON ANOTHER POSSIBILITY FOR A NEW NETWORK IS THE 12 UHF STATIONS OWNED BY SILVER KING COMMUNICATIONS A COMPANY RECENTLY SPUN OFF FROM VIDEO RETAILER HOME SHOPPING NETWORK INC THE STATIONS IN SUCH MAJOR MARKETS AS CHICAGO NEW YORK AND LOS ANGELES REACH 28 MILLION HOUSEHOLDS ALTHOUGH THEY CARRY HOME SHOPPING PROGRAMMING THEY COULD EASILY BECOME THE LAUNCH PAD FOR A FORMIDABLE BROADCASTER SILVER KING WOULD BENEFIT HANDSOMELY FROM A RULING EXPECTED SOON FROM THE FDERAL COMMUNICATIONS COMMISSION THAT COULD REQUIRE CABLE OPERATORS TO CARRY HOME SHOPPING PROGRAMMING UNDER MUSTCARRY RULES LAST WEEK THE COMMISSION POSTPONED THE DECISION INDEFINITELY AS IT WEIGHS THE PUBLIC INTEREST OF SUCH PROGRAMMING WHILE SILVER KING DECLINED TO GIVE DETAILS ON PLANS FOR THE STATIONS IN A RECENT FILING WITH THE FCC HOME SHOPPING SAID IT WOULD EXPLORE NEW BUSINESS OPPORTUNITIES IN LIGHT OF THE MUSTCARRY RULES THE OPPORTUNITIES INCLUDE THE CREATION OF NEW BUSINESS ENTITIES AND CHANGES IN THE COMPANY'S BROADCAST RELATIONSHIPS AND/OR EXPANSION IN THE CARRIAGE OF THE COMPANY'S PROGRAMMING BY CABLE OPERATORS IF HOME SHOPPING CHAIRMAN ROY SPEER SELLS OUT HIS VOTING CONTROL OF SILVER KING AS MANY EXPECT LIBERTY MEDIA CORP HAS AN OPTION TO BUY HIS VOTING STAKE FOR 2 MILLION LIBERTY MEDIA WHICH CONTROLS HOME SHOPPING NETWORK ALSO CONTROLS QVC NETWORK INC WITH MR DILLER SOME IN THE TV INDUSTRY SAY THE SILVER KING STATIONS WOULD BE THE PERFECT PLATFORM FOR MR DILLER TO START A FIFTH NETWORK BUT MANY AGREE WITH MR DILLER'S ASSESSMENT THAT THE MOST IMPORTANT THING IS COMING UP WITH QUALITY PROGRAMMING THAT VIEWERS WILL WATCH THE QUESTION IS ARE YOU OFFERING VALUEADDED SAYS FURMAN SELZ ANALYST JOHN TINKER DO YOU REALLY NEED ANOTHER MIDDLEOFTHEROAD INDEPENDENT STATION GROUP 9306280107 930628 WHAT'S NEWS WORLDWIDE THE US DECLARED ITS MISSILE STRIKE AGAINST IRAQ A MILITARY SUCCESS CLINTON TERMED THE WEEKEND ATTACK A SUCCESSFUL REPRISAL FOR AN ALLEGED ASSASSINATION PLOT AGAINST FORMER PRESIDENT BUSH THE RAID SENT THE MESSAGE WE NEEDED TO SEND CLINTON SAID THE US FIRED 23 TOMAHAWK CRUISE MISSILES AT IRAQ'S INTELLIGENCE HEADQUARTERS IN BAGHDAD OUR PRELIMINARY ASSESSMENT IS THAT WE HIT THE TARGETS WE INTENDED AND INFLICTED SEVERE DAMAGE SAID JOINT CHIEFS CHAIRMAN POWELL BUT THREE OF THE MISSILES WENT ASTRAY HITTING RESIDENTIAL AREAS AND IRAQI OFFICIALS SAID AT LEAST EIGHT PEOPLE DIED AT THE UN US AMBASSADOR ALBRIGHT DISPLAYED PHOTOS OF EXPLOSIVES THAT SHE SAID WERE INTENDED TO BE USED TO KILL BUSH DURING HIS APRIL VISIT TO KUWAIT THE IRAQI AMBASSADOR SAID THE ALLEGED PLOT WAS A KUWAITI FABRICATION PRESIDENT CLINTON IS EXPECTED TO NAME REED HUNDT A WASHINGTON LAWYER AND FRIEND OF VICE PRESIDENT GORE TO BE CHAIRMAN OF THE FCC AN ADMINISTRATION OFFICIAL SAID MUSLIM FORCES TURNED BACK BRITISH UN TROOPS TRYING TO REACH A CENTRAL BOSNIAN TOWN ZEPCE WHERE CROATS AND MUSLIMS CLASHED MEANWHILE MUSLIM RADIO REPORTED THAT SERB AND CROAT ATTACKERS WERE CLOSING IN ON THE NEARBY TOWN OF MAGLAJ A PANEL OF AIDS EXPERTS BACKED AWAY FROM A US RECOMMENDATION SUPPORTING EARLY AZT TREATMENT SAYING DOCTORS AND PATIENTS SHOULD DECIDE THE NATIONAL INSTITUTES OF HEALTH EARLIER HAD SAID PATIENTS WITH HIV INFECTION SHOULD TAKE THE DRUG AS SOON AS THE NUMBER OF CERTAIN WHITE BLOOD CELLS IS HALF THE NORMAL LEVEL A BASECLOSING COMMISSION ENDED ITS FIFTH AND FINAL DAY OF RECOMMENDATIONS FOR A LEANER US MILITARY THE PANEL VOTED TO PLACE A HIGHTECH NAVAL CENTER IN CHARLESTON SC PARTLY OFFSETTING A DECISION TO CLOSE THE CITY'S NAVAL AIR STATION AND SHIPYARD HAITIAN POLICE FIRED TEAR GAS INSIDE A ROMAN CATHOLIC CHURCH IN A HILLSIDE SLUM NEAR PORTAUPRINCE AFTER HUNDREDS OF WORSHIPERS SHOUTED LONG LIVE ARISTIDE IN NEW YORK UNMEDIATED TALKS GOT UNDER WAY INVOLVING MILITARY LEADER CEDRAS AND ARISTIDE HAITI'S OUSTED PRESIDENT REDUCED PESTICIDE USE WILL BE SOUGHT BY THE CLINTON ADMINISTRATION WHICH SAID IT WOULD DEVELOP PROPOSALS TO PROMOTE PRACTICES THAT RELY ON ALTERNATIVE PESTCONTROL METHODS A NATIONAL ACADEMY OF SCIENCES REPORT CALLED FOR IMPROVED PROCEDURES TO PROTECT CHILDREN BETTER FROM THE CHEMICALS NORTH KOREA ABORTED NEGOTIATIONS WITH SOUTH KOREA TO ARRANGE DIRECT TALKS SATURDAY'S MOVE DAMPED THE OPTIMISM IN SEOUL THAT FOLLOWED RECENT USNORTH KOREAN TALKS AIMED AT CURBING PYONGYANG'S NUCLEAR PROGRAM ON FRIDAY SOUTH KOREA'S PRESIDENT KIM SAID THE NORTH KOREANS SEEMED TO BE MOBILIZING FOR WAR NIGERIA'S MILITARY RULER ORDERED NEW PRESIDENTIAL BALLOTING TO REPLACE THE JUNE 12 ELECTION HE ANNULLED HE BARRED THE TWO EARLIER CANDIDATES FROM PARTICIPATING AGAIN BANBANGIDA WHO MADE THE ANNOUNCEMENT SATURDAY GAVE NO DATE FOR THE NEW VOTE POLISH PRESIDENT WALESA DENOUNCED THE SOLIDARITY TRADE UNION HE FOUNDED AFTER IT REFUSED TO SUPPORT HIS NEWLY FORMED ALLIANCE IN SEPT 19 ELECTIONS WALESA WAS ANGERED BY THE UNION'S DECISION TO FIELD ITS OWN CANDIDATES FOR THE ELECTIONS INSTEAD OF JOINING WITH HIS ALLIANCE OF INDEPENDENT GROUPS MANDELA REJECTED DEMANDS FOR AN INDEPENDENT WHITE STATE BY SOUTH AFRICAN RIGHTWINGERS AND WARNED THEM THE BLACK MAJORITY WOULD FIGHT ANY ATTEMPT TO FORM ONE THE AFRICAN NATIONAL CONGRESS LEADER'S REMARKS CAME AS PRESSURE MOUNTED ON PRESIDENT DE KLERK TO ACT AGAINST THE WHITE EXTREMISTS WHO STORMED DEMOCRACY TALKS FRIDAY SOMALI GUNMEN WOUNDED TWO AMERICAN SOLDIERS IN THE SECOND ATTACK IN THREE DAYS ON US TARGETS ABOUT AN HOUR EARLIER A PAKISTANI PEACEKEEPER WAS WOUNDED UN OFFICIALS SAID THE ATTACKS IN MOGADISHU FOLLOWED THE DISTRIBUTION OF UNDERGROUND LEAFLETS WARNING OF REPRISALS AGAINST UN TROOPS FOR A CRACKDOWN ON CLAN LEADER AIDID DIED ROY CAMPANELLA 71 FORMER BROOKLYN DODGERS ALLSTAR CATCHER WHO WAS ONE OF THE FIRST PLAYERS TO BREAK THE COLOR BARRIER IN PROFESSIONAL BASEBALL SATURDAY IN WOODLAND HILLS CALIF OF A HEART ATTACK 9306280106 930628 US OFFICIALS VISIT JAPANESE REGULATORS TO DEFEND ACCESS TO DERIVATIVES MARKET BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE US GOVERNMENT IS TAKING UP THE CAUSE OF US SECURITIES FIRMS IN JAPAN TO HELP THEM HANG ONTO LUCRATIVE STOCKDERIVATIVES BUSINESS IN THE WORLD'S SECONDLARGEST FINANCIAL MARKET IN AN UNUSUAL INSTANCE OF US REGULATORS' MAKING A PREEMPTIVE STRIKE AGAINST JAPAN'S POLICYMAKING REPRESENTATIVES OF THE US TREASURY AND THE SECURITIES AND EXCHANGE COMMISSION MET FRIDAY WITH THEIR COUNTERPARTS AT JAPAN'S FINANCE MINISTRY WE'RE SEEKING TO REDUCE THE MANAGEMENT OF TRADE THAT WORKS TO THE DISADVANTAGE OF AMERICAN FIRMS SAID LAWRENCE SUMMERS US TREASURY UNDERSECRETARY FOR INTERNATIONAL AFFAIRS STOCK DERIVATIVES ARE SOPHISTICATED FINANCIAL INSTRUMENTS SUCH AS FUTURES AND OPTIONS THAT ARE BASED ON UNDERLYING STOCKS US FIRMS HAVE A LEADING ROLE IN DERIVATIVES TRADING IN JAPAN AND THEY MAKE HUNDREDS OF MILLIONS OF DOLLARS A YEAR IN THE BUSINESS A FEW SAVVY US COMPANIES INCLUDING MORGAN STANLEY GROUP INC SALOMON INC AND GOLDMAN SACHS & CO HAVE FOCUSED MUCH OF THEIR ENERGY IN TOKYO ON THIS PART OF THE FINANCIAL MARKET THE FIRMS DON'T DISCLOSE THEIR JAPANESE EARNINGS BUT PRIVATELY OFFICIALS HAVE NOT DISPUTED LOCAL REPORTS THAT SHOW THEM OUTEARNING THE JAPANESE COMPETITION SOME JAPANESE SECURITIES COMPANIES ALONG WITH THE TOKYO STOCK EXCHANGE WANT TO CURB DERIVATIVES WHICH THEY THINK HURT THE TRADITIONAL BUSINESS OF TRADING ORDINARY STOCK THE EXCHANGE HAS PROPOSED RULES ALLOWING IT TO SHUT DOWN DERIVATIVES BUSINESS WHEN IT WANTS AND TO LIMIT THE BUSINESS A COMPANY MAY CONDUCT FOR ITS OWN ACCOUNT IT'S AN ATTACK ON THE WHOLE MARKET PROCESS ONE SENIOR EXECUTIVE AT A US FIRM SAID THE REASONS ARE REGRESSIVE JAPANESE SECURITIES FIRMS ARE OPPOSED TO US BECAUSE OF OUR SUCCESS THE US OFFICIALS AND REGULATORS AT THE FINANCE MINISTRY AGREED ONLY ON AN OUTLINE BUT THE PRINCIPLES THEY SET THAT REGULATIONS SHOULD HAVE PRUDENT OBJECTIVES THAT RULES SHOULD BE KNOWN BY ALL PARTIES AND SHOULDN'T BE APPLIED IN A DISCRIMINATORY WAY AND THAT RULES SHOULD BE CLEAR COULD GIVE US FIRMS LEVERAGE TO DEFEND THEMSELVES AGAINST EXCESSIVE REGULATION JUST AS IMPORTANT THE US GOVERNMENT BY PURSUING THE NEGOTIATIONS SENT A CAUTIONARY SIGNAL TO JAPANESE FIRMS SEEKING TO CURB DERIVATIVES MR SUMMERS THE TREASURY UNDERSECRETARY ALSO EXPRESSED HIS VIEWS LAST WEEK TO EXECUTIVES OF THE TOKYO EXCHANGE JAPAN'S FINANCE MINISTRY MAY YET DECIDE TO LET THE MARKET CURB DERIVATIVES TRADING BUT MANY OBSERVERS SAY THAT ANY RULES IT AGREES TO WILL LIKELY BE LESS RESTRICTIVE THAN THOSE THE EXCHANGE WANTS THE REASON THEY SAY IS THAT SEVERAL LARGE JAPANESE FIRMS INCLUDING NOMURA SECURITIES CO AND DAIWA SECURITIES CO ARE ALSO ACTIVE DERIVATIVES TRADERS BOTH IN JAPAN AND THE US ANALYSTS SAY THE FINANCE MINISTRY MIGHT WORRY THAT CURBS ON US COMPANIES IN JAPAN COULD LEAD TO SANCTIONS ON JAPANESE FIRMS IN THE US 9306280105 930628 GLOBAL VIEW JAPAN ITALY AND OTHER MELODRAMAS FOR THE SUMMIT BY GEORGE MELLOAN KOICHI KATO A CLOSE ALLY OF JAPANESE PRIME MINISTER KIICHI MIYAZAWA HAD AN ANGRY TELEVISED CONFRONTATION WITH FELLOW LEGISLATOR TSUTOMU HATA SHORTLY AFTER MR HATA LED THE LIBERAL DEMOCRATIC PARTY REBELLION THAT BROUGHT DOWN MR MIYAZAWA'S GOVERNMENT THE COLLAPSE SINCE WHICH MR HATA AND HIS ALLIES HAVE FORMED A NEW RENAISSANCE PARTY WAS IN MR KATO'S VIEW A TERRIBLE EMBARRASSMENT TO JAPAN WHERE IN POPULAR LEGEND EMBARRASSMENT IS ALMOST UNBEARABLE YOU WERE FINANCE MINISTER AND YOU ATTENDED SUMMITS ANY NUMBER OF TIMES SO YOU KNOW AS WELL AS ANYONE THE INTERNATIONAL IMPORTANCE OF THE SUMMIT RAGED MR KATO WHY DID YOU DO THIS SEVERAL THINGS CAN BE SAID ABOUT THIS EXCHANGE FIRST OF ALL IT IS BY NO MEANS CLEAR THAT THE G7 ECONOMIC SUMMIT SCHEDULED FOR TOKYO JULY 79 HAS ANY INTERNATIONAL IMPORTANCE WHATSOEVER THE SUMMITEERS WILL WRING THEIR HANDS ABOUT THE GLOBAL RECESSION BUT THE POLICIES THEY ARE ACTUALLY FOLLOWING AT HOME ARE MORE LIKELY TO DEEPEN RATHER THAN LESSEN THE RECESSION BILL CLINTON REPORTEDLY BOASTED THAT HE WOULD GO TO THE SUMMIT LIKE A 400POUND GORILLA IF HE GOT HIS MASSIVE TAX ANDSPEND BILL THROUGH THE SENATE WHICH HE DID JUST BARELY ON FRIDAY THE COMPARISON WAS MORE APT THAN INTENDED GORILLALIKE TURF WARS OVER TRADE HAVE BECOME A CLINTON SPECIALTY AND ONE CAN ASSUME THAT GORILLAS ARE NO MORE AWARE THAN MR CLINTON THAT BIG TAX INCREASES DEEPEN RATHER THAN RELIEVE RECESSIONS AS FOR THE EUROPEANS WITH THE EXCEPTION OF JOHN MAJOR THEY MADE IT CLEAR AT THEIR OWN EC SUMMIT LAST WEEK THAT THEY ARE ALL FOR JOB GROWTH SO LONG AS THEY DON'T HAVE TO ALTER SOCALLED SOCIAL LEGISLATION IN OTHER WORDS THEY REFUSE TO CHANGE THE LAWS THAT CAUSE ECONOMIC STAGNATION BY INFLICTING HIGH COSTS ON EMPLOYERS THROUGH LEGALLY REQUIRED BENEFITS WHEN THEY HIRE NEW WORKERS GIVEN GLOBAL RECESSION AND THE DISMAL VOTER APPROVAL RATINGS OF G7 GOVERNMENTS THIS PROMISES TO BE A LUGUBRIOUS SUMMIT INDEED ITALIAN PRIME MINISTER CARLO CIAMPI WILL REPRESENT A COUNTRY WHERE BECAUSE OF CORRUPTION SCANDALS PARLIAMENTARIANS ARE BEING FROGMARCHED INTO AN ELECTORAL REFORM THAT COST MANY OF THEM THEIR JOBS FRENCH PRESIDENT FRANCOIS MITTERRAND'S PARLIAMENTARY PARTY HAS JUST GONE SMASH HE WILL BE ACCOMPANIED BY A POPULAR RIVAL PRIME MINISTER EDOUARD BALLADUR HELMUT KOHL BILL CLINTON AND JOHN MAJOR HAVE ANEMIC APPROVAL RATINGS AND THEN OF COURSE THERE IS MR MIYAZAWA THERE MAY ONCE HAVE BEEN SOME TRUTH TO THE NOTION THAT THE JAPANESE CAN'T TOLERATE EMBARRASSMENT OR LOSS OF FACE BUT IF IT IS TRUE AT ALL TODAY IT SURELY DOESN'T APPLY TO THE COUNTRY'S POLITICIANS IF MR MIYAZAWA HAD BEEN CAPABLE OF MORE EMBARRASSMENT OVER LDP SCANDALS HIS GOVERNMENT MIGHT STILL BE STANDING TODAY HIS FAILURE TO PUSH THROUGH PROMISED POLITICAL REFORMS WAS THE REASON FOR THE REVOLT OF 35 LDP DIET MEMBERS LED BY MR HATA THAT RESULTED IN A NOCONFIDENCE VOTE JUNE 18 APPARENTLY MR MIYAZAWA COULD NOT PERSUADE THE OLD HANDS IN THE LDP THAT TIMES WERE CHANGING AND THAT THEY HAD BETTER START CLEANING UP THEIR ACTS ON THE FAVORS THEY HAVE BESTOWED ON BIG POLITICAL CONTRIBUTORS BOTH THE JAPANESE AND THE ITALIAN EXAMPLES DEMONSTRATE HOW HARD IT IS TO REFORM A LEGISLATIVE BODY FROM WITHIN IN ITALY THE LONGRUNNING POWER OF THE CHRISTIAN DEMOCRATIC PARTY IN THE SENATE AND CHAMBER OF DEPUTIES WAS NOT SHAKEN UNTIL THE DANGER OF COMMUNISM AS AN ALTERNATIVE WAS GREATLY LESSENED BY THE SOVIET COLLAPSE SIMILARLY THE LDP HAS REMAINED IN POWER FOR 47 YEARS BECAUSE OF THE ABSENCE OF AN ACCEPTABLE OPPOSITION IN BOTH COUNTRIES SCANDALS AND ECONOMIC ADVERSITY HAVE CONTRIBUTED AS WELL TO DEMANDS FOR CHANGE AS FOR THE US BELOWTHESURFACE RUMBLINGS ARE BEING HEARD BUT ONLY FAINTLY AT THIS POINT THE DEMOCRATIC PARTY AS WITH ITALY'S CHRISTIAN DEMOCRATS AND JAPAN'S LDP HAS BEEN ENTRENCHED IN CONGRESS AND PARTICULARLY IN THE LOWER HOUSE THROUGHOUT MOST OF THE POSTWAR ERA MAINLY THROUGH THE SOCALLED CAMPAIGN REFORM ACT OF 1974 IT HAS MANAGED TO STRENGTHEN THE POWER OF INCUMBENCY TO THE POINT WHERE IN THE HOUSE AT LEAST IT SEEMS TO BE ALMOST UNASSAILABLE BUT THEN ITALY'S CD AND JAPAN'S LDP LOOKED THAT WAY NOT SO LONG AGO TOO WITH MR CLINTON IN THE WHITE HOUSE IT HAS BECOME HARDER FOR DEMOCRATS IN THE LEGISLATURE TO SHIFT BLAME TO THE PRESIDENT FOR THE CONSEQUENCES OF THE PARTY'S NATURAL TENDENCY TOWARD BALLOONING THE POWER OF THE BELTWAY IF THE US ECONOMIC RECOVERY CONTINUES TO FALTER AS SEEMS LIKELY THERE WILL BE LOUDER AND LOUDER CRIES FROM THE HINTERLANDS FOR CONGRESSIONAL TERM LIMITS AND OTHER ANTIDOTES TO THAT FAMOUS CAMPAIGN REFORM ACT GIVEN THE PRESENT INEFFECTUALITY OF THE REPUBLICAN PARTY THE UPRISING MAY HAVE TO BE LED BY SOME NONPARTY MOVEMENT ALONG THE LINES OF WHAT STARTED OUT IN ITALY AS THE LOMBARD LEAGUE AND HAS NOW MATURED INTO A NEW PARTY OF GROWING STRENGTH THE STRENGTH OF THE ROSS PEROT MOVEMENT LAST NOVEMBER SHOULD WARN BOTH MAJOR US PARTIES BUT JUST AS MANY AMERICANS HAVE JUSTIFIABLE DOUBTS ABOUT PUTTING A ROSS PEROT IN THE WHITE HOUSE THERE ARE CONCERNS AS WELL ABOUT WHAT THE POLITICAL EARTHQUAKES IN JAPAN AND ITALY MIGHT SCARF UP THE LEADERS OF THE RENAISSANCE PARTY OR WHATEVER IT ULTIMATELY COMES TO BE CALLED IN ENGLISH ARE PART OF A YOUNGER GENERATION BUT NOT NEW FACES IN JAPANESE POLITICS INDEED ICHIRO OZAWA WHO SHARES THE SPOTLIGHT WITH MR HATA WAS A PROTEGE OF FORMER PARTY LEADER SHIN KANEMARU OUSTED SOME MONTHS AGO OVER CORRUPTION REVELATIONS IN ITALY UMBERTO BOSSI LEADER OF THE FORMER LOMBARD NOW NORTHERN LEAGUE HAS SOMETIMES FRIGHTENED LISTENERS WITH HIS PROPOSALS FOR SPLITTING ITALY'S NORTH AND SOUTH BUT ITALIANS FIND MR BOSSI'S ANTISTATISM APPEALING HATAOZAWA AND COMPANY PROMISE TO GET SERIOUS ABOUT MAKING JAPAN LESS OF A PRODUCTION MACHINE AND MORE A COUNTRY WHERE PEOPLE CAN ENJOY THEIR LIVES SOMETHING THE LDP PROPOSED BUT SHOWS NO SIGNS OF DELIVERING IN SHORT BOTH MOVEMENTS ARE RESPONDING TO IMPORTANT PUBLIC DISCONTENTS WHAT WE SEEM TO BE SEEING WORLDWIDE IS A DESIRE BY VOTING PUBLICS TO CREATE THEIR OWN NEW WORLD ORDER BY CUTTING SOME POWERFUL POLITICAL ENTITIES DOWN TO SIZE IF THAT BECOMES A SOURCE OF EMBARRASSMENT AT THE TOKYO ECONOMIC SUMMIT WELL TOO BAD