WESTCOAST ENERGY INC VANCOUVER BRITISH COLUMBIA SAID IT PLANS A PUBLIC OFFERING OF EIGHT MILLION COMMON SHARES OF WHICH THREE MILLION WILL BE REGISTERED IN THE US THE OFFERING WOULD RAISE ABOUT 126 MILLION AT THE CURRENT MARKET PRICE WESTCOAST FELL 125 CENTS TO 1575 IN NEW YORK STOCK EXCHANGE TRADING THE PIPELINE AND GAS DISTRIBUTION CONCERN CURRENTLY HAS 729 MILLION SHARES OUTSTANDING WESTCOAST SAID IT WILL USE THE PROCEEDS TO PAY OFF THE REMAINING DEBT ASSOCIATED WITH THE COMPANY'S RECENT ACQUISITION OF TORONTO GAS DISTRIBUTOR UNION ENERGY INC 9306240115 930624 GENERAL SIGNAL TO SELL DRYTEK STAMFORD CONN GENERAL SIGNAL CORP SAID IT AGREED DEFINITIVELY TO SELL ITS DRYTEK UNIT TO LAM RESEARCH CORP FREMONT CALIF TERMS WEREN'T DISCLOSED DRYTEK BASED IN WILMINGTON DEL DEVELOPS AND MANUFACTURES PLASMA ETCH USED TO MAKE INTEGRATED CIRCUITS FOR THE SEMICONDUCTOR INDUSTRY LAM IS A MANUFACTURER OF SEMICONDUTOR EQUIPMENT AND PLASMA ETCH GENERAL SIGNAL WHICH DECLINED TO GIVE DRYTEK'S SIZE ANNOUNCED IN JANUARY IT PLANNED TO DIVEST ITSELF OF ITS SEVEN SEMICONDUCTOREQUIPMENT UNITS THE DIVERSIFIED COMPANY HAS MOVED TOWARD A PUBLIC OFFERING OF ONE UNIT SOLD ANOTHER AND IS NEGOTIATING SALES OF TWO MORE 9306240114 930624 OHM UNIT WINS CONTRACT FINDLAY OHIO OHM CORP SAID ITS OHM REMEDIATION SERVICES CORP UNIT RECEIVED A 30 MILLION CONTRACT FOR THE CLEANUP OF HAZARDOUS WASTE AT THE CLEVE REBER SUPERFUND SITE NEAR BATON ROUGE LA THE ENVIRONMENTAL SERVICES COMPANY SAID THE PROJECT WILL BEGIN WITHIN 30 DAYS AND LAST ABOUT TWO YEARS THE CLEANUP WILL INVOLVE THE INCINERATION OF ABOUT 25000 TONS OF CONTAMINATED SOIL AND TREATMENT OF ABOUT 38 MILLION GALLONS OF PROCESS WATER THE COMPANY SAID 9306240113 930624 SUIT ALLEGES GOLDMAN COMMITTED FRAUD IN BUCYRUSERIE LBO NEW YORK GOLDMAN SACHS & CO IS FACING A LAWSUIT THAT ALLEGES THE COMPANY COMMITTED FRAUD IN ORGANIZING THE 1988 LEVERAGED BUYOUT OF BUCYRUSERIE CO THE LAWSUIT SEEKING UNSPECIFIED MONEY DAMAGES WAS FILED IN FEDERAL COURT HERE BY JACKSON NATIONAL LIFE INSURANCE CO A LANSING MICH INSURANCE CONCERN WHICH IN 1990 BOUGHT 60 MILLION OF BUCYRUSERIE'S 125 RESETTABLE SENIOR NOTES DUE 1996 BUCYRUSERIE A MILWAUKEE OPERATING COMPANY OWNED BY BE HOLDINGS INC ANNOUNCED THIS YEAR THAT IT WOULD DEFAULT ON THE NOTES JACKSON NATIONAL IS A UNIT OF BRITAIN'S PRUDENTIAL CORP PLC ACCORDING TO THE SUIT THE LBO LEFT BUCYRUSERIE BURDENED BY AN EXCESSIVE DEBT LOAD THAT HAS MADE IT INSOLVENT THE SUIT ALSO ACCUSES GOLDMAN AND OTHERS OF PARTICIPATING IN A SERIES OF FRAUDULENT CONVEYANCES SINCE THE LBO THAT PROTECTED GOLDMAN'S SUBSTANTIAL INTERESTS IN BE HOLDINGS AT THE EXPENSE OF JACKSON NATIONAL LIFE AND OTHER CREDITORS OF THE OPERATING COMPANY FRAUDULENT CONVEYANCE LAWSUITS HAVE BECOME INCREASINGLY COMMON IN THE WAKE OF FAILED LBOS ALTHOUGH THEY HAVE PROVEN DIFFICULT TO WIN IN COURT THE JACKSON NATIONAL SUIT IS ESPECIALLY INTERESTING BECAUSE IT PROBES THE RELATIONSHIP BETWEEN GOLDMAN AND TWO FORMER PARTNERS MIKAEL SALOVARRA AND FREDERIC ECKERT THE LAWSUIT NAMES THESE TWO MEN AS WELL AS VULTURE FUNDS THAT THEY SET UP AFTER LEAVING GOLDMAN IN 1991 AS DEFENDANTS SUCH FUNDS SPECIALIZE IN BUYING SECURITIES OF DISTRESSED COMPANIES MR SALOVARRA RESIGNED AFTER CLIENTS OF THE INVESTMENT BANK COMPLAINED ABOUT A FUND HE WAS RUNNING FOR GOLDMAN IN 1992 HE ORGANIZED THROUGH GREYCLIFF GROUP THE INVESTMENT ADVISER TO HIS FUNDS A 35 MILLION SALELEASEBACK OF A BUCYRUSERIE FACTORY TO INJECT CASH INTO THE STRUGGLING COMPANY A SPOKESMAN FOR GREYCLIFF GROUP CALLED THE SUIT RIDICULOUS WE INTEND VIGOROUSLY TO CONTEST IT THE SPOKESMAN SAID GOLDMAN SACHS IN A STATEMENT CALLED THE SUIT FRIVOLOUS AND WITHOUT ANY MERIT IT SAID JACKSON NATIONAL IS A SOPHISTICATED 16 BILLION INSURANCE GIANT WHO FOLLOWING THEIR OWN DUE DILIGENCE REVIEW MADE A PRIVATE PLACEMENT INVESTMENT IN BUCYRUSERIE IN JUNE 1990 MORE THAN TWO YEARS AFTER THE LBO WAS COMPLETED THE COMPANY HAS BEEN OPERATING IN A DEPRESSED INDUSTRY IN A DIFFICULT ECONOMY GOLDMAN SAID THAT JACKSON AND ITS INVESTMENT ADVISER ARE TRYING TO HOLD SOMEONE UP BECAUSE THEIR INVESTMENT IN BUCYRUSERIE DIDN'T FARE WELL 9306240112 930624 CLINTON POLITICAL DIRECTOR EMANUEL IS REASSIGNED WASHINGTON THE WHITE HOUSE'S POLITICAL DIRECTOR RAHM EMANUEL HAS BEEN REASSIGNED TO THE COMMUNICATIONS DEPARTMENT WHERE HE WILL DIRECT THE ADMINISTRATION'S RESPONSES TO POLITICAL AND POLICY ATTACKS THE 33YEAROLD MR EMANUEL HAS BEEN CRITICIZED FOR HIS BRUSQUE MANNER AND FOR BEARING SOME RESPONSIBILITY FOR THE PROBLEMS THAT PRESIDENT CLINTON HAS ENCOUNTERED IN SELLING HIS ECONOMIC PLAN IN CONGRESS HE WILL BECOME A DEPUTY TO MARK GEARAN THE COMMUNICATIONS DIRECTOR JOAN BAGGETT CURRENTLY MR EMANUEL'S DEPUTY IS EXPECTED TO SUCCEED HIM AS POLITICAL DIRECTOR 9306240111 930624 PRICE WATERHOUSE COCHAIRMAN NEW YORK PRICE WATERHOUSE SAID THAT JAMES L MCDONALD WILL SUCCEED DOMINIC A TARANTINO AS COCHAIRMAN EFFECTIVE JULY 1 MR TARANTINO 60 YEARS OLD WILL BECOME CHAIRMAN ON OCT 1 OF THE AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS FOR A ONEYEAR TERM DURING THAT TIME HE WILL CONTINUE AS A CONSULTANT TO PRICE WATERHOUSE IT HAS NOT BEEN DETERMINED WHETHER MR TARANTINO WILL RETURN TO THE FIRM FULL TIME MR MCDONALD 50 IS DEPUTY VICE CHAIRMAN OF TAX FOR PRICE WATERHOUSE ONE OF THE BIG SIX USACCOUNTING FIRMS AND PREVIOUSLY WAS PARTNER IN CHARGE OF INTERNATIONAL TAX SERVICES FOR THE WEST COAST REGION A PRACTICE HE ESTABLISHED 9306240110 930624 LEISURE & ARTS FILM LONELY HEARTS FALL IN LOVE FROM AFAR BY JULIE SALAMON THE WRITER AND DIRECTOR NORA EPHRON DOESN'T BELIEVE IN BEATING AROUND THE BUSH YOU WANT A REACTION JUST REACH FOR THOSE TEAR DUCTS AND SQUEEZE SO SHE INTRODUCES THE MALE ROMANTIC LEAD OF SLEEPLESS IN SEATTLE BY SHOWING HIM A NICELOOKING YOUNG FATHER STANDING AT HIS WIFE'S GRAVESIDE WITH THEIR LITTLE BOY SHE KNOWS SHE'S HOOKED AT LEAST HALF HER AUDIENCE THE GUY WOULD HAVE TO BE A MURDERER A REALLY VICIOUS MURDERER FOR FEMALE VIEWERS TO RELINQUISH THEIR DESIRE TO MAKE HIM FEEL BETTER THIS ISN'T SEXIST JUST A MATTER OF FACT EVEN TOUGH WOMEN WHO SHOULD KNOW BETTER ARE SECRETLY SOFT TOUCHES FOR WIDOWERS WITH LITTLE BOYS TO MAKE SURE THE ACE IS REALLY IN THE HOLE MS EPHRON CAST THE EVERADORABLE TOM HANKS AS THE SORROWFUL DAD HAVING ESTABLISHED THE MOVIE'S GOAL TO MAKE TOM HANKS FEEL BETTER MS EPHRON PROCEEDS IN THE STYLE OF A 1950S ROMANTIC COMEDY SHORTLY AFTER WE MEET THE PROBLEM THE LONELY WIDOWER NAMED SAM WE MEET THE SOLUTION IN THE PERSON OF MEG RYAN A PERKY JOURNALIST NAMED ANNIE WITH THE PLOT MORE OR LESS DISPENSED WITH IN THE FIRST FIVE MINUTES THE REST OF THE MOVIE IS TAKEN UP WITH CARRYING OUT THE INEVITABLE SAM GETTING TOGETHER WITH ANNIE WHEN IN DOUBT MS EPHRON OPTS FOR CUTE INDEED SLEEPLESS IN SEATTLE IS VERY CUTE STARTING WITH THE AMUSING SCREENPLAY PUT TOGETHER BY MS EPHRON DAVID S WARD AND JEFF ARCHER ANNIE LEARNS ABOUT SAM WHEN HIS SON JONAH ROSS MALINGER MANIPULATES HIS FATHER INTO SPILLING HIS SOUL ON A NATIONAL TALKRADIO PROGRAM IMMEDIATELY WOMEN ALL OVER THE COUNTRY WANT TO SOOTHE HIM BUT ONLY ANNIE BECOMES OBSESSED BY THIS IDEA EVEN THOUGH SHE IS ALREADY ENGAGED TO A NICE MAN THE OBSTACLE DESIGNED TO FILL THE 95 MINUTES FOLLOWING THE ESTABLISHMENT OF THE PREMISE IS GEOGRAPHIC HE LIVES IN SEATTLE SHE LIVES IN BALTIMORE MS EPHRON HAS UNDERSCORED THE WHIMSY WITH OVERLIT MOONS AND MAGICAL MAPS AND SVEN NYQUIST'S CINEMATOGRAPHY GIVES THE PICTURE A WARM TWINKLY FEELING ON THE OTHER HAND THE EMOTIONAL MOMENTS HAVE BEEN OVERSCORED MS EPHRON USES SONGS LIKE SUBTITLES SAM DECIDES TO START DATING AGAIN TO BACK IN THE SADDLE AGAIN ANNIE'S ROMANTIC INSOMNIA IS ACCOMPANIED BY IN THE WEE SMALL HOURS OF THE NIGHT STILL IT'S HARD NOT TO APPRECIATE THE APPRECIATION MS EPHRON OBVIOUSLY HAS FOR AMERICAN SCHMALTZ ESPECIALLY IN THE FORM OF MUSIC AND MOVIES HER PICTURE PAYS HOMAGE TO CORNY SONGS AND MOVIES MAINLY BY MIMICKING THEM ANNIE AND ALMOST EVERY OTHER GROWN WOMAN IN SLEEPLESS IN SEATTLE IS CRAZY ABOUT AN AFFAIR TO REMEMBER THAT'S THE 1957 WEEPER IN WHICH CARY GRANT AND DEBORAH KERR FALL IN LOVE ON A SHIP THEN AGREE TO MEET ON TOP OF THE EMPIRE STATE BUILDING AT THE END OF THE YEAR SHE DOESN'T SHOW UP BECAUSE SHE'S BEEN SEVERLY INJURED THE MOVIE'S FANS DON'T SEEM TO MIND THE FACT THAT IT TAKES HER PRINCE CHARMING FOREVER TO THINK OF FINDING HER NUMBER IN THE PHONE BOOK MS EPHRON UNDERSTANDS THAT WHILE ONE DOESN'T HAVE TO BE FEMALE TO WEEP PROFUSELY AT THIS KIND OF ROMANTIC ILLOGIC IT HELPS SOUNDS LIKE A CHICK'S MOVIE MUTTERS SAM WHEN HE HEARS ABOUT THE PLOT MOST OF THE BEST LINES GO TO THE SUPPORTING PLAYERS AND THE CHILDREN HOWEVER RITA WILSON MR HANKS'S WIFE HAS THE PICTURE'S FUNNIEST MOMENT WHEN SHE TRIES TO EXPLAIN WHY SHE LIKES AN AFFAIR TO REMEMBER SO MUCH MS EPHRON HAS QUICKLY DEVELOPED A CALCULATED SMOOTHNESS AS A DIRECTOR THIS IS ONLY THE SECOND PICTURE SHE'S DIRECTED THOUGH SHE'S WRITTEN A NUMBER OF SCREENPLAYS THIS PROFICIENCY IS A GOOD AND A BAD THING MS EPHRON'S NEW MOVIE IS A CLEVER PIECE OF ENTERTAINMENT BUT NOT NEARLY AS TOUCHING AS HER DEBUT THIS IS MY LIFE SHE'S NOT TAKING ANY NOTICEABLE CHANCES HERE SLEEPLESS IN SEATTLE IS COTTON CANDYSWEET AND STICKYSTAR NEAR THE END OF LAST ACTION HERO JACK SLATER THE FILM CHARACTER PLAYED BY ARNOLD SCHWARZENEGGER CONFRONTS MR SCHWARZENEGGER ALSO PLAYING HIMSELF AND WAILS LOOK I DON'T REALLY LIKE YOU YOU HAVE BROUGHT ME NOTHING BUT PAIN ISOLATED FROM THE REST OF THE PICTURE THIS MOMENT TAKES ON KAFKAESQUE DIMENSIONS IS MR SCHWARZENEGGER WHO HELPED PRODUCE THE MOVIE AS WELL AS STAR IN IT COMMENTING ON THE NATURE OF CELEBRITY DEPLORING THE WAY SUPERSTARDOM SEPARATES AN ACTOR FROM HIS ART HAVE THE MORE THAN 90 MINUTES OF STUNTS AND EXPLOSIONS THAT PRECEDED THIS MOMENT SIMPLY BEEN PREPARING US FOR THE BARING OF MR SCHWARZENEGGER'S SOUL PROBABLY NOT BUT AFTER ENDURING LAST ACTION HERO YOU TOO MAY FIND YOUR CRITICAL FACULTIES HAVE SPLINTERED EVEN WITHOUT THE CONFUSION OF MR SCHWARZENEGGER'S SELFAGGRANDIZING SELFMOCKERY THE MOVIE IS LAVISHLY INCOHERENT MANY OF THE MAIN PEOPLE ASSOCIATED WITH IT DIRECTOR JOHN MCTIERNAN WRITER SHANE BLACK MR SCHWARZENEGGER ARE PERPETRATORS OF THE KIND OF CARTOONISH ACTION PICTURES LAST ACTION HERO IS TRYING TO SPOOF NOT SURPRISINGLY THEY'RE BETTER WITH CRASHING CARS THAN TELLING JOKES THERE IS ONLY ONE REALLY SATISFYING SCENE IN HIS GUISE AS HIMSELF MR SCHWARZENEGGER APPEARS AT A MOVIE PREMIERE WITH HIS REALLIFE WIFE MARIA SHRIVER AFTER SMILING FOR THE CAMERAS SHE GROWLS AT HIM TO STOP PROMOTING HIS RESTAURANTS AND HEALTH CLUBS EVERY CHANCE HE GETS AMID ALL THE PYROTECHNICS THERE'S SOMETHING REFRESHINGLY WEIRD ABOUT HER AMATEUR'S LINE READING A MILLISECOND OF TRUTH IN ADDITION TO MS SHRIVER ANOTHER PERFORMER STANDS OUT IN LAST ACTION HERO CHARLES DANCE IS SLYLY SMARMY AS THE VILLAIN BEST KNOWN AS SGT GUY PERRON IN THE TELEVISION ADAPTATION OF JEWEL IN THE CROWN HE HAS BEEN IN A NUMBER OF FILMS INCLUDING ALIEN 3 I REMEMBER HIM BEST FOR PASCALI'S ISLAND AN ATMOSPHERIC PICTURE ABOUT INTRIGUE ROMANCE AND PHILOSOPHY ON A GREEK ISLAND IN 1908 9306240109 930624 BUSINESS BRIEF QUICK & REILLY GROUP INC DISCOUNT BROKER'S NET ROSE 51 FOR FISCAL 1ST QUARTER THE DISCOUNT BROKERAGE COMPANY QUICK & REILLY GROUP INC REPORTED A 51 INCREASE IN FISCAL FIRSTQUARTER NET INCOME REFLECTING STRONG INVESTOR PARTICIPATION IN THE EQUITY AND BOND MARKETS FOR THE QUARTER ENDED MAY 28 THE COMPANY HAD NET INCOME OF 102 MILLION OR 96 CENTS A SHARE COMPARED WITH THE YEAR EARLIER 68 MILLION OR 65 CENTS A SHARE PERSHARE FIGURES REFLECT A 5 STOCK DIVIDEND ANNOUNCED IN MAY REVENUE ROSE 29 TO 601 MILLION FROM 465 MILLION IN THE YEARAGO QUARTER LESLIE C QUICK JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE GAINS REFLECT STRONG CONTINUED CUSTOMER INTEREST IN THE STOCK MARKET AS AN ALTERNATIVE TO LOWYIELDING MONEY FUNDS AND CDS DESPITE LINGERING UNCERTAINTY ABOUT THE ECONOMY THE GROUP'S BROKERAGE UNIT OPERATES 85 OFFICES AND PLANS TO OPEN SIX MORE IN THE CURRENT QUARTER 9306240108 930624 BUSINESS BRIEF SKIS ROSSIGNOLS SA FRENCH SPORTSGEAR FIRM SWINGS INTO BLACK FOR YEAR SKIS ROSSIGNOLS SA THE PARISBASED SKI AND SPORTSEQUIPMENT GROUP SWUNG TO A PROFIT OF 367 MILLION FRANCS 64 MILLION FOR FISCAL 1993 ENDED MARCH 31 FROM A YEAREARLIER LOSS OF 54 MILLION FRANCS THE COMPANY ALSO SAID THAT IT EXPECTS PROFIT TO DOUBLE IN THE CURRENT YEAR THE GROUP POSTED A 12 FRANCSASHARE DIVIDEND ITS FIRST IN THREE YEARS CONFIRMING PREVIOUS COMPANY PREDICTIONS OF AT LEAST A 10FRANCSASHARE PAYOUT SALES ROSE 13 TO 169 BILLION FRANCS FROM 149 BILLION FRANCS THE COMPANY SAID THAT ITS DOWNHILLSKI SALES HAD RISEN 11 SKIBOOT SALES WERE UP 28 AND GOLFEQUIPMENT SALES SOARED 78 9306240106 930624 REGENERON TO BUY PLANT AND LAB TARRYTOWN NY REGENERON PHARMACEUTICALS INC SAID IT SIGNED A LETTER OF INTENT TO PURCHASE A RENSSELAER NY FACTORY AND LAB OPERATED BY STERLING WINTHROP INC REGENERON PLANS TO USE THE PLANT TO PRODUCE A COMPOUND FOR TREATMENT OF AMYOTROPHIC LATERAL SCLEROSIS OR LOU GEHRIG'S DISEASE THE TREATMENT IS IN PHASE III TESTING WHICH IS DESIGNED TO SEE WHETHER IT IS BETTER THAN EXISTING THERAPIES OR A PLACEBO THE LAB WILL BE USED FOR EXPANSION OF RESEARCH AND DEVELOPMENT NEW YORK STATEBACKED LOANS WILL FINANCE AS MUCH AS 50 OF THE 14 MILLION PURCHASE AND REFURBISHING COST REGENERON IS A MAKER OF BIOTECHNOLOGYBASED COMPOUNDS TO TREAT NEUROLOGICAL DISEASES AND INJURIES NEW YORKBASED STERLING WINTHROP A MAKER OF DRUGS AND HEALTH PRODUCTS IS A UNIT OF EASTMAN KODAK CO 9306240105 930624 WORLD MARKETS TOKYO PRICES END MIXED AND TURNOVER SHRINKS WHILE INVESTORS AWAIT SHIFTS IN POLITICAL WINDS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCK PRICES FINISHED MIXED WEDNESDAY IN THE THINNEST TURNOVER IN ALMOST THREE MONTHS BECAUSE OF JAPAN'S POLITICAL AND GOVERNMENTAL UPSETS LONDON SHARES SLIPPED IN SUBDUED TRADING WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10413 UP 049 REFLECTING INCREASES IN EUROPEAN AND ASIA/PACIFIC MARKETS AND A DROP IN THE AMERICAS OVERSEAS TRADING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10221 UP 255 OR 26 WITH JARDINE MATHESON OF HONG KONG POSTING A 26 GAIN IN ITS LOCAL CURRENCY BROADCAST STOCKS TRAILED AT 12802 DOWN 360 OR 27 WITH CBS OF THE US SLIDING 8 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH CLIMBED 32587 POINTS TUESDAY AFTER MONDAY'S 59211POINT PLUNGE FELL 4578 TO 1949252 ON THURSDAY THE NIKKEI ROSE 20149 POINTS TO CLOSE THE MORNING SESSION AT 1969401 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 230 MILLION SHARES DOWN SHARPLY FROM 3498 MILLION SHARES A DAY EARLIER TO THE LOWEST LEVEL SINCE MARCH 2 ADVANCING ISSUES EDGED OUT RETREATING ISSUES 553455 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH GAINED 2410 POINTS TUESDAY ROSE 701 TO 156239 SINCE THE MONDAY DIVETHE STEEPEST ONEDAY POINT DROP IN ALMOST 10 MONTHS IN REACTION TO A VOTE OF NO CONFIDENCE IN THE JAPANESE GOVERNMENT PRIME MINISTER KIICHI MIYAZAWA HAS ORDERED A JULY 18 ELECTION FOR THE LOWER HOUSE OF THE DIET OR PARLIAMENT INVESTORS SPECULATED ON THE SHAPE OF A COMING COALITION AFTER THE RULING PARTY SPLINTERED CURRENT STOCK PRICES DISCOUNTED THE GOVERNMENT SITUATION BUT INVESTORS ALSO WERE AWAITING SUNDAY ELECTIONS FOR TOKYO'S METROPOLITAN ASSEMBLY TO PROVIDE ANOTHER WEATHERVANE FOR POLITICAL DIRECTION JAPAN'S PUBLIC PENSION FUNDS WHICH BOUGHT STOCKS TUESDAY AND HELPED THE NIKKEI BOUNCE UP BOUGHT AGAIN WEDNESDAY SELLERS MAINLY WERE BASKET ARBITRAGERS A SITUATION THAT ACCOUNTED FOR THE NIKKEI'S WEAKNESS AND THE BROADER MARKET'S RISE THE COMMUNICATIONS SECTOR POSTED STRONG GAINS BANKS AND OTHER STOCKS SENSITIVE TO INTEREST RATES FIRMED REBOUNDING A BIT FROM THEIR MONDAY TUMBLE BUT STEELMAKERS LOST GROUND IN HEAVY TURNOVER AFTER THE US ON TUESDAY ACCUSED 19 NATIONS INCLUDING JAPAN OF DUMPING STEEL OR SELLING IT ABROAD AT UNFAIRLY LOW PRICES AND RECOMMENDED STIFF DUTIES ON THE PRODUCTS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 69 POINTS TO 29007 THE FT 30STOCK INDEX SLIPPED 12 POINTS TO 22758 VOLUME WAS 5958 MILLION SHARES COMPARED WITH 5881 MILLION SHARES A DAY EARLIER TRADING WAS MARKED BY A STRUGGLE BY THE 100STOCK INDEX TO REMAIN ABOVE THE 2900 LEVEL STOCKS' GAINS EARLIER THIS WEEK WERE INFLUENCED BY THE FUTURES PIT THOUGH SOME INVESTORS ENCOURAGED BY THE DOLLAR'S NEW STRENGTH AND POSSIBLE BRITISH LENDINGRATE CUTS WERE GUARDEDLY OPTIMISTIC ABOUT A RISE FOR EQUITIES IN THE NEXT MONTH AMONG LONDON STOCKS UNDER PRESSURE YESTERDAY PHARMACEUTICAL ISSUES SLUMPED FOLLOWING A TUESDAY SELLOFF IN WALL STREET'S DRUG SECTOR BECAUSE OF REGULATORY AND EARNINGSORIENTED FACTORS IN FRANKFURT SHARE PRICES CLOSED MIXED WHILE THE DAX 30STOCK INDEX ADDED 131 POINTS TO 169939 COMING DOWN FROM A SESSION HIGH OF 171215 AS TRADERS SCRAMBLED TO COVER SHORT POSITIONS IN FUTURES BUYING TO REPLACE BORROWED SECURITIES IN A STRATEGY TO PROFIT ON A PRICE DECLINE OF THE DAX STOCKS 18 ROSE AND 12 FELL THE INITIAL STRENGTH CAME FROM THE STRONGER DOLLAR AND THIS BOOSTED DOLLARSENSITIVE STOCKS SUCH AS CHEMICAL AND AUTO MAKERS PRICES SLID BACK IN AFTERNOON TRADING AS SELLERS DOMINATED PARIS SHARE PRICES UNDAUNTED BY ANOTHER DOSE OF DISAPPOINTING ECONOMIC NEWS FROM THE US ABOUT SLOWED FIRSTQUARTER GROWTH FINISHED WITH MODEST GAINS AS THE BOURSE'S JUNE ACCOUNTING MONTH ENDED FRENCH SHARE PRICES WERE STEADIED BY THE CONTINUED DECLINE IN DOMESTIC INTEREST RATES WHICH ARE EXPECTED TO EASE MANY COMPANIES' DEBT BURDEN MEANWHILE THE DOLLAR'S SUSTAINED RALLY ENCOURAGED PURCHASES OF STOCKS WITH BUSINESS IN NORTH AMERICA AND HEIGHTENED HOPES THAT US INVESTORS WILL DIG INTO FRENCH EQUITIES AMSTERDAM STOCKS ENDED MIXED PULLED DOWN BY LATE PROFITTAKING FOLLOWING WEAKERTHANEXPECTED US DURABLE GOODS DATA AND A SETBACK IN THE DOLLAR RALLY IN MILAN AUTO AND TELECOMMUNICATIONS STOCKS LED THE MARKET SOLIDLY HIGHER THOUGH GAINS WERE TEMPERED BY CONCERNS ABOUT THE EXTENT OF ITALIAN BANKS' EXPOSURE TO PROBLEM CORPORATE DEBT AND BANKING ISSUES FARED POORLY MADRID PRICES DROPPED SHARPLY AFTER SPAIN'S CENTRAL BANK LEFT ITS BENCHMARK INTEREST RATE UNCHANGED THE BANK MIGHT DELAY ANY RATE CUT UNTIL A STABLE SPANISH GOVERNMENT IS FORMED AND A COALITION OR VOTING ALLIANCE IS EXPECTED BY EARLY JULY STOCKHOLM EQUITIES IN HEAVY TRADING PLUMMETED 12 LARGELY BECAUSE OF HIGHER SWEDISH INTEREST RATES A WEAKER KRONA CURRENCY AND A LACK OF FRESH CORPORATE NEWS ZURICH STOCKS AFTER GETTING STRENGTH FROM OTHER EUROPEAN BOURSES' POSITIVE PERFORMANCES AND THE FIRM DOLLAR ENDED LOWER ON PROFITTAKING ACROSS THE BOARD SEOUL STOCKS PLUNGED ON SPREADING CONCERNS ABOUT LABOR DISPUTES AT SOME LARGE MANUFACTURING COMPANIES TAIPEI SHARE PRICES REBOUNDED STRONGLY LED MAINLY BY ELECTRICAL AND FINANCIAL SHARES AMONG CORPORATE DEVELOPMENTS IN LONDON GLAXO HOLDINGS SANK 85 PENCE OR 14 TO 579 PENCE 855 THE PHARMACEUTICAL COMPANY WAS DOWNGRADED BY A US BROKERAGE FIRM FOR THE SECOND TIME IN TWO DAYS GLAXO FACES A PLATEAU IN NEW US PRESCRIPTIONS FOR THE MIGRAINE DRUG IMITREX AND OVEREXPOSURE TO THE WEAK GERMAN AND ITALIAN HEALTHCARE MARKETS AND MIGHT NOT BE ABLE TO SUSTAIN EARNINGS GROWTH WALL STREET HAS BEEN WORRIED ABOUT PRESSURE ON GLAXO EARNINGS BECAUSE OF THE THREAT TO SALES OF ITS BIGSELLING ANTIULCER DRUG ZANTAC FROM GENERIC VERSIONS ONCE PATENTS EXPIRE IN PARIS PSA PEUGEOT CITROEN ADVANCED 9 FRENCH FRANCS OR 17 TO 549 FRANCS 9621 THE AUTO MAKER TOLD SHAREHOLDERS ITS FIRSTHALF EARNINGS WILL BE HURT BY FALLING SALES CRIMPED PROFIT MARGINS AND RISING MARKETING COSTS BUT IT PREDICTED A SECONDHALF RECOVERY CITING NEW PRODUCTS IMPROVED QUALITY CONTROL AND TIGHTER COST CONTROLS PEUGEOT HAD 1992 CONSOLIDATED PROFIT OF 337 BILLION FRANCS 5906 MILLION OFF 39 FROM A YEAR EARLIER IN ZURICH FINANCIERE RICHEMONT BEARER SHARES WERE SUSPENDED FROM TRADING YESTERDAY AND TODAY WHEN A COMPANY ANNOUNCEMENT IS EXPECTED RICHEMONT LAST CLOSED AT 1390 SWISS FRANCS 91990 ROTHMANS INTERNATIONAL DUNHILL HOLDINGS AND RICHEMONT SAID TUESDAY THEY WERE DISCUSSING A STOCKSWAP REORGANIZATION THAT WOULD RESULT IN TWO SEPARATE GROUPS FOCUSING ON TOBACCO AND LUXURY GOODS RICHEMONT OWNS 62 OF ROTHMANS WHICH IN TURN OWNS 57 OF DUNHILL RICHEMONT WOULD CONTINUE TO HOLD THE MAJORITY OF BOTH NEW GROUPS 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 9306240104 930624 WHO'S NEWS DRUG EMPORIUM INC DRUG EMPORIUM INC COLUMBUS OHIO VJ TOM WIECHART SR 66 YEARS OLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WIECHART PHARMACY INC LIMA OHIO WAS ELECTED A DIRECTOR OF THIS DRUGSTORE CHAIN HE SUCCEEDS ROBERT H MOROSKY WHO DIDN'T STAND FOR REELECTION 9306240103 930624 DIVIDEND NEWS GREAT LAKES BANCORP GREAT LAKES BANCORP ANN ARBOR MICH SAID IT WILL PAY COMMON STOCK DIVIDENDS TO HOLDERS OF BOTH COMMON AND PREFERRED STOCK HOLDERS OF COMMON STOCK WILL RECEIVE ONE SHARE OF COMMON FOR EVERY 50 SHARES OWNED HOLDERS OF PREFERRED STOCK WILL RECEIVE ONE SHARE OF COMMON FOR EVERY 60 SHARES OF PREFERRED OWNED BOTH DIVIDENDS WILL BE PAID JULY 15 TO STOCK OF RECORD JULY 1 9306240102 930624 BUSINESS BRIEF FERRUZZI FINANZIARIA SPA ITALIAN FOREIGN CREDITORS TO MEET ON RESTRUCTURING ITALIAN CREDITOR BANKS OF FERRUZZI FINANZIARIA SPA WILL MEET WITH FOREIGN BANK CREDITORS SOON FRANCO CINGANO CHAIRMAN OF MEDIOBANCA SAID AT AN ANNUAL MEETING OF BANKING ASSOCIATION ABI MEDIOBANCA IS LEADING A GROUP OF ITALIAN CREDITOR BANKS IN A PLAN TO RESTRUCTURE THE AGROINDUSTRIAL CONGLOMERATE TO DEAL WITH ITS MASSIVE DEBTS FOREIGN BANKS ARE OWED ABOUT 65 TRILLION LIRE 424 BILLION TREASURY MINISTER PIERO BARUCCI SAID TUESDAY FERRUZZI'S OVERALL DEBT TOTALS MORE THAN 15 TRILLION LIRE THE RESTRUCTURING PLAN COULD BE READY WITHIN A MONTH ACCORDING TO LUIGI FAUSTI MANAGING DIRECTOR OF BANCA COMMERCIALE ITALIANA ONE OF THE ITALIAN CREDITOR BANKS FRIDAY FERRUZZI'S BANKS DECIDED TO LAY CLAIM ON THE FERRUZZI FAMILY'S 48 SHAREHOLDING IN FERRUZZI FINANZIARIA THE MAIN HOLDING COMPANY OF THE GROUP 9306240101 930624 RJR CANCELS OFFERING OF NABISCO STOCK CITING THE POOR MARKET FOR FOOD SHARES BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RJR NABISCO HOLDINGS CORP CANCELED ITS 17 BILLION NABISCO STOCK OFFERING BLAMING THE POOR MARKET FOR FOOD STOCKS THE COLLAPSE OF THE DEAL WAS A BLOW TO TOBACCO AND FOOD GIANT RJR AND ITS PRIMARY SHAREHOLDER KOHLBERG KRAVIS ROBERTS & CO WHICH WERE COUNTING ON THE OFFERING TO BOOST RJR'S SLUMPING STOCK PRICE RJR HAD PLANNED TO CREATE A SEPARATE CLASS OF STOCK TIED TO ITS NABISCO FOOD COMPANY BECAUSE OF FRUSTRATION OVER THE DEPRESSED PRICES GRANTED TO TOBACCOCOMPANY STOCKS BUT RJR HASN'T GIVEN UP ON THE NOTION OF FREEING ITS NABISCO FOOD BUSINESS FROM THE TOBACCO TAINT LARGE RJR SHAREHOLDERS AND PEOPLE CLOSE TO THE COMPANY SAID THEY EXPECT RJR TO ATTEMPT AN OUTRIGHT SPINOFF OF THE FOOD GROUP NEXT YEAR IN CANCELING THE DEAL RJR BLAMED THE SLUMP IN MARKET VALUE FOR FOOD COMPANIES IN RECENT MONTHS STANDARD & POOR'S CORP'S FOOD GROUP HAS DROPPED MORE THAN 8 IN THE PAST THREE MONTHS AS INVESTORS HAVE FOCUSED ON THE THREAT TO BRANDED PRODUCTS FROM PRIVATELABEL RIVALS RJR CHOOSE NOT TO ADJUST ITS OFFERING BELOW THE 17TO19 RANGE THE DEAL COULD HAVE BEEN DONE AT 15 A SHARE ACCORDING TO PEOPLE CLOSE TO THE COMPANY BUT RJR HAS NO REASON TO RAISE CAPITAL IN AN UNFAVORABLE MARKET ENVIRONMENT SAID CHARLES M HARPER RJR'S RECENTLY APPOINTED CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR HARPER A PROVEN MONEYMAKER AT CONAGRA INC WAS BROUGHT IN LAST MONTH IN PART TO HELP SELL INVESTORS ON THE OFFERING THE PLAN HAD PROVEN A TOUGH SELL ON WALL STREET FROM THE START AND HAD ALREADY BEEN DRASTICALLY REVISED FACED WITH A SLUMPING SHARE PRICE AND A DAMAGING CIGARETTEPRICE WAR RJR WAS FORCED IN APRIL TO SLASH THE TOTAL DIVIDENDS SHAREHOLDERS WOULD HAVE RECEIVED IT ALSO ALTERED THE PLAN SO THAT RJR HOLDERS WOULD NO LONGER AUTOMATICALLY GET A PIECE OF THE FOOD BUSINESS BUT IN THE END INVESTORS WERE UNHAPPY THAT THE NABISCO SHARES WOULD STILL BE LINKED TO RJR'S TOBACCO BUSINESS THE TOBACCO INDUSTRY'S WOES HAVE DRIVEN RJR'S STOCK DOWN 45 FROM ITS 52WEEK HIGH INVESTORS REACTED FAVORABLY TO THE DEAL BEING DROPPED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING RJR CLOSED AT 550 UP 25 CENTS OR 48 SOME LARGE INVESTORS EXPECT RJR TO ATTEMPT A SPINOFF OF ITS FOOD GROUP NEXT YEAR CLEANLY SEVERING THE FOOD AND TOBACCO UNIT CURRENTLY CERTAIN BOND COVENANTS PROHIBIT SUCH A MOVE ALSO RJR WOULD RECEIVE MORE FAVORABLE TAX TREATMENT OF A SPINOFF NEXT YEAR WE HAVEN'T SEEN THE END OF GETTING THE VALUE OF NABISCO OUT OF RJR STOCK IT'S JUST NOT GOING TO HAPPEN IN THIS FORM SAID LARRY WEISSMAN A PORTFOLIO MANAGER AT COLLEGE RETIREMENT EQUITIES FUND THE LARGEST SHAREHOLDER IN RJR AFTER KKR MR WEISSMAN CALLED THE FEAR OF BEING ASSOCIATED WITH THE TOBACCO COMPANY THE STICKING POINT IN THE OFFERING JOHN MCMILLIN AN ANALYST WITH PRUDENTIAL SECURITIES INC SAID TO GET THE VALUE OF NABISCO REFLECTED TO RJR SHAREHOLDERS YOU NEED A DIVORCE NOT A SEPARATION HE ADDED IT IS A MATTER OF TIME BEFORE THE FOOD ASSETS ARE SEVERED FROM THE TOBACCO ASSETS NABISCO'S BRANDS INCLUDE OREO COOKIES GREY POUPON MUSTARD RITZ CRACKERS AND PLANTERS PEANUTS RJR PLANNED TO USE THE PROCEEDS FROM THE OFFERING TO RETIRE PART OF ITS 14 BILLION DEBT BY CANCELING THE SALE THE COMPANY WILL SAVE ABOUT 190 MILLION A YEAR IN PROPOSED DIVIDENDS RJR DOESN'T PAY DIVIDENDS AND YESTERDAY IT WOULDN'T COMMENT ON THE POSSIBILITY OF ANY FUTURE PAYOUTS ANALYSTS SAID THE FAILURE OF THE OFFERING WOULDN'T HINDER RJR'S ABILITY TO DO BATTLE WITH PHILIP MORRIS COS IN THE CIGARETTEPRICE WAR THE FAILED PLAN AND THE CONTINUING TURMOIL AT RJR WHICH HAS EXPERIENCED A STREAM OF TOPMANAGEMENT TURNOVER LATELY IS TROUBLING TO SOME INVESTORS IN THE KKR BUYOUT FUND THAT OWNS A CONTROLLING INTEREST IN RJR I'M CONCERNED SAID JAMES PENNER CHIEF INVESTMENT OFFICER AT THE MONTANA BOARD OF INVESTMENTS AN INVESTOR IN THE FUND KKR'S INVESTMENT IN RJR REPRESENTS ABOUT HALF OF KKR'S LARGEST BUYOUT FUND A POOL FORMED IN 1987 ITS PROBLEMS COULD DAMP INVESTOR INTEREST IN FUTURE KKR DEALS I'M NOT FEELING AS GOOD AS I DID WHEN I MADE THE INVESTMENT MR PENNER SAID YESTERDAY GIVEN THE PROBLEMS AT RJR MR PENNER SAID HE WOULDN'T INVEST IN ANOTHER KKR FUND UNLESS THERE WAS A PROVISION THAT WOULD PREVENT THEM FROM PUTTING TOO MANY EGGS IN ONE BASKET THAT'S THEIR BIGGEST ERROR KKR HAD NO COMMENT BUT PEOPLE CLOSE TO THE KKR FUND SAID INVESTORS SHOULD BE PLEASED THAT RJR DIDN'T SELL NABISCO SHARES AT A BARGAINBASEMENT PRICE THE DEAL WAS EXPECTED TO BE PRICED LAST NIGHT AND RJR WAITED UNTIL THE LAST MINUTE TO PULL THE PLUG MORGAN STANLEY THE LEAD UNDERWRITER WAS HOLDING MEETINGS WITH POTENTIAL INVESTORS ON THE WEST COAST AS RECENTLY AS TUESDAY DISCUSSIONS ABOUT WHETHER TO PROCEED WENT ON LATE TUESDAY NIGHT AND RESUMED AT 6 AM YESTERDAY THE DECISION TO CANCEL THE OFFERING WAS MADE AT 1130 WHEN MORGAN STANLEY CALLED RJR AND TOLD THE COMPANY THAT IT COULD HANDLE THE SALE AT 15 A SHARE ACCORDING TO A PERSON INVOLVED IN THE TALKS PEOPLE INVOLVED IN THE DISCUSSIONS SAID RJR'S MR HARPER ARGUED FORCEFULLY AGAINST ACCEPTING LESS THAN 16 FOR THE NABISCO STOCK AFTER A BRIEF CONVERSATION KKR AND RJR MANAGEMENT TOLD MORGAN STANLEY THAT IT WOULDN'T OFFER THE STOCK AT 15 THESE PEOPLE SAID MORGAN STANLEY WHICH WILL FORGO ABOUT 20 MILLION IN FEES BECAUSE THE DEAL DIDN'T GO THROUGH AGREED THAT IT DIDN'T MAKE SENSE TO PROCEED WE COMPLETELY SUPPORTED THE COMPANY SAID A MORGAN STANLEY SPOKESWOMAN ANALYSTS SAID THE COMPANY'S TOBACCO ARM GENERATES A CASH FLOW OF ABOUT 1 BILLION A YEAR RJR SAID THAT GIVEN THE IMPROVED STATE OF ITS BALANCE SHEET BECAUSE IT HAS CUT ITS 28 BILLION POSTBUYOUT DEBT IN HALF SINCE 1989 THERE WAS NO COMPELLING NEED TO RAISE EQUITY CAPITAL 9306240100 930624 AT&T PURCHASE IN POLAND NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT PURCHASED A MAJORITY INTEREST IN MESON SP Z OO A DISTRIBUTOR OF BUSINESS COMMUNICATIONS SYSTEMS IN POLAND THE NEW AT&T BUSINESS COMMUNICATIONS SYSTEMS POLSKA SP Z OO UNIT WILL BE BASED IN WARSAW MESON HAD SALES OF 13 MILLION IN 1992 TERMS OF THE AGREEMENT WEREN'T DISCLOSED MESON SELLS AT&T'S DEFINITY BUSINESS TELEPHONE SWITCHING SYSTEMS 9306240099 930624 GROUP LED BY KPMG GETS CONTRACT TO HELP FORMER SOVIET STATES WASHINGTON KPMG PEAT MARWICK SAID THE US AGENCY FOR INTERNATIONAL DEVELOPMENT AWARDED A CONTRACT TO A CONSORTIUM HEADED BY ITS POLICY ECONOMICS GROUP TO PROVIDE TECHNICAL ASSISTANCE ON PRIVATIZATION TO 12 COUNTRIES IN THE FORMER SOVIET UNION AN AID SPOKESMAN SAID THE CONTRACT IS FOR 775 MILLION OVER THREE YEARS AID SAID THE GOVERNMENTS OF THE FORMER SOVIET STATES REQUESTED THE TECHNICAL ASSISTANCE IN LIGHT OF THE NEW REPUBLICS' ECONOMIC WOES AID IS FOOTING THE BILL FOR VARIED CONSULTING SERVICES PEAT MARWICK A BIG SIX ACCOUNTING FIRM HEADS A CONSORTIUM WITH FOUR OTHER MAJOR MEMBERS INCLUDING JP MORGAN & CO SAIC INC BECHTEL GROUP INC AND BAIN & CO THE GROUP WILL WORK TO ATTRACT FOREIGN INVESTMENT IN FORMER STATE ENTERPRISES OFFER TRADE POLICY ADVICE PROVIDE TECHNICAL TRAINING AND HELP RUN PUBLIC INFORMATION CAMPAIGNS ON PRIVATIZATION PEAT MARWICK SAID THE CONSORTIUM WILL WORK WITH ALL THE FORMER SOVIET STATES EXCEPT THE THREE BALTIC STATES THE TECHNICAL ASSISTANCE PACKAGE DOESN'T PRECLUDE EXISTING OR FUTURE AGREEMENTS BETWEEN THE FORMER SOVIET REPUBLICS AND OTHER PRIVATIZATION EXPERTS 9306240098 930624 BUSINESS BRIEF CEPHALON INC PARTNER PAYS SCHEDULED FEE ALZHEIMER'S WORK CONTINUES CEPHALON INC WEST CHESTER PA SAID SCHERINGPLOUGH CORP MADE THE SCHEDULED 4 MILLION ANNUAL PAYMENT TO CONTINUE THEIR AGREEMENT TO DEVELOP TREATMENTS FOR ALZHEIMER'S DISEASE THE BIOTECHNOLOGY COMPANY WHICH SPECIALIZES IN NEUROLOGICAL DISEASES AND DISORDERS AND SCHERINGPLOUGH BEGAN THEIR FIVEYEAR COLLABORATIVE AGREEMENT IN MAY 1990 SCHERINGPLOUGH A MADISON NJ DRUG AND HEALTHCARE CONCERN PAID 18 MILLION OVER FOUR YEARS TO CEPHALON FOR RESEARCH AND DEVELOPMENT A CEPHALON SPOKESWOMAN SAID SCHERINGPLOUGH HAS THE OPTION TO END THE AGREEMENT AT ANY TIME CEPHALON SAID THAT WITH SCHERINGPLOUGH IT DEVELOPED TWO SCIENTIFIC PROGRAMS FOR ALZHEIMER'S TREATMENTS THE FIRST IS TO PRODUCE NERVEGROWTH FACTORS THAT WILL ARREST THE DEVELOPMENT OF ALZHEIMER'S THE SECOND SEEKS TO PREVENT THE GROWTH OF AMYLOID PLAQUES IN THE BRAIN THAT ARE CHARACTERISTIC OF THE DISEASE 9306240097 930624 MUTUAL FUNDS JAPAN'S FINANCIAL AND POLITICAL TURMOIL BRING SOME HIGHFLYING FUNDS TO EARTH BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL MUTUAL FUNDS THAT SOARED WITH JAPANESE STOCKS EARLIER THIS YEAR ARE LOSING ALTITUDE FALLING STOCK PRICES IN TOKYO DURING THE PAST THREE WEEKS AND A MORE RECENT DECLINE IN THE YEN RELATIVE TO THE DOLLAR HAVE PUNISHED THE HALFDOZEN US MUTUAL FUNDS THAT INVEST PRIMARILY IN JAPANESE STOCKS SOME HAVE LOST MORE THAN 10 OF THEIR VALUE SINCE JUNE 3 BOTH JAPAN'S STOCK MARKET AND ITS CURRENCY HAVE BEEN UNDERMINED BY THE DISARRAY IN THE COUNTRY'S LIBERAL DEMOCRATIC PARTY WHICH IS BESET BY POLITICAL FISSURES AND CORRUPTION CHARGES MANY FUND MANAGERS EXPECT THE JAPANESE MARKET TO BE FLAT TO DOWN FOR SEVERAL MONTHS I THINK THAT IT'S QUITE LIKELY THAT THE LDP IS GOING TO LOSE ITS MAJORITY SAYS ELIZABETH ALLAN PORTFOLIO MANAGER OF JAPAN FUND THE OLDEST OF THE JAPANESE STOCK FUNDS I THINK IT'S GOING TO TAKE THE MARKET A WHILE TO DIGEST THIS BUT FUND MANAGERS SAY THEY AREN'T MAKING ANY WHOLESALE CHANGES IN THEIR PORTFOLIOS AT LEAST SO FAR AT THE MOMENT NO ONE KNOWS HOW LONG THE POLITICAL TURMOIL WILL LAST OR HOW IT WILL AFFECT JAPAN'S ECONOMY NOW IN RECESSION THE SITUATION IS AS CLEAR AS MUD AT THE MOMENT SAYS DAVID WARREN A COMANAGER OF T ROWE PRICE JAPAN FUND HE EXPECTS JAPAN'S ECONOMY TO IMPROVE SOME TIME THIS YEAR THOUGH IT WON'T BE A BLAZING RECOVERY DESPITE THEIR RECENT LOSSES FUNDS INVESTING IN JAPAN HAVE HAD A GOOD YEAR THROUGH JUNE 21 THE DAY JAPANESE STOCKS DECLINED 3 THE FUNDS HAD TOTAL RETURNS PRICE CHANGE PLUS REINVESTED DIVIDENDS OF 14 TO 35 FOR THE PAST 12 MONTHS UNTIL RECENTLY A SURGING YEN WAS A MAJOR CONTRIBUTOR TO THOSE RETURNS AS THE YEN RISES RELATIVE TO THE DOLLAR IT INCREASES THE VALUE OF ASSETS DENOMINATED IN YEN BUT THE FUNDS LEFT SOME MONEY ON THE TABLE THE DOW JONES EQUITY MARKET INDEX FOR JAPAN GAINED 4351 IN DOLLAR TERMS FOR THE 12 MONTHS ENDED JUNE 21 NOT COUNTING DIVIDENDS THAT RETURN WAS WELL ABOVE THOSE ACHIEVED BY THE MUTUAL FUNDS THE HIGHEST FUND RETURN BELONGED TO CAPSTONE NIKKO JAPAN UP JUST ABOVE 35 INCLUDING SHARE PRICE CHANGE AND REINVESTED DIVIDENDS WHY DIDN'T THE FUNDS KEEP UP WITH THE BREAKNECK GAINS OF JAPAN'S MARKET A YEAR AGO MOST OF THE FUNDS WERE PREOCCUPIED WITH TRYING TO PROTECT THEMSELVES FROM THE HORRENDOUS THREEYEAR DECLINE IN JAPANESE STOCKS WHICH LOST 60 OF THEIR VALUE FROM THE PEAK AT THE END OF 1989 TO CUSHION LOSSES IN THE BEAR MARKET MANY FUNDS INCREASED THEIR CASH HOLDINGS AND THEY STEERED CLEAR OF BANK AND FINANCIAL STOCKS WHICH SUFFERED HUGE DECLINES WHEN JAPANESE STOCKS TURNED AROUND IN AUGUST THE BANK STOCKS SOARED BUT THE MUTUAL FUNDS WERE LEFT BEHIND LIGHT ON BANKS AND HEAVY WITH LOWYIELDING CASH INSTRUMENTS DFA JAPANESE SMALL COMPANY IS AN INDEX FUND THAT TRIES TO MATCH THE PERFORMANCE OF A BASKET OF SMALL JAPANESE STOCKS THE FUND LAGGED THE DOW JONES EQUITY MARKET INDEX FOR JAPAN NOT BECAUSE OF CASH HOLDINGS IT IS ALWAYS ALMOST TOTALLY INVESTED BUT BECAUSE SMALL JAPANESE STOCKS LAGGED THE PERFORMANCE OF THE LARGER STOCKS IN THE DOW JONES INDEX MANY DIVERSIFIED INTERNATIONAL MUTUAL FUNDS HAVE SHIED AWAY FROM JAPANESE STOCKS ALL YEAR AND MISSED MUCH OF THE RALLY JAPAN HAS BEEN A HUGE MOVER EVERYBODY'S BEEN CAUGHT OUT SAYS GARETH WATTS PORTFOLIO MANAGER OF GOVETT INTERNATIONAL EQUITY FUND SOME OF THE HOLDOUTS ARE UNREPENTANT THEY STILL DON'T CARE MUCH FOR THE JAPANESE MARKET AND ARE KEEPING THEIR EXPOSURE TO JAPAN MINIMAL IF NOT AVOIDING IT ENTIRELY TRUE JAPANESE STOCKS ARE STILL AT ONLY HALF THE LEVEL OF THEIR PEAK THE SKEPTICS SAY BUT THEY STILL LOOK EXPENSIVE TO SOME MANAGERS WHEN MEASURED AGAINST EARNINGS THE CHEAP STOCKS STILL AREN'T IN JAPAN SAYS MARK HOLOWESKO A PORTFOLIO MANAGER AT TEMPLETON FUNDS AND REAL ESTATE PRICES CONTINUE TO FALL HE SAYS PROVIDING A WEAK UNDERPINNING FOR THE WHOLE ECONOMIC STRUCTURE OTHER INTERNATIONAL MANAGERS HAVE BOUGHT ON JAPAN'S RECENT WEAKNESS PIONEER INTERNATIONAL GROWTH FOR THE FIRST TIME PUT 5 OF ITS ASSETS IN JAPAN THIS WEEK SAYS MANAGER NORMAN KURLAND HE ESTIMATES JAPANESE EARNINGS WILL BOUNCE BACK BY 30 NEXT YEAR AND CONTINUE GROWING AFTER THAT FUND MANAGERS WHO ARE STAYING IN JAPAN DON'T DENY THE NEXT FEW MONTHS MAY SEE DOWN MARKETS BUT THEY DON'T EXPECT A RETURN TO THE HORRIFIC DECLINES OF THE PRIOR THREE YEARS I STILL FEEL PRETTY CONFIDENT THAT THE MAJOR BEAR MARKET IS OVER SAYS STEPHEN SILVERMAN PORTFOLIO MANAGER OF MERRILL LYNCH PACIFIC FUND WHICH HAS MORE THAN 65 OF ITS ASSETS IN JAPAN MR SILVERMAN EXPECTS A SHORTTERM MARKET DECLINE HE WOULD WELCOME SUCH A DIP AS AN OPPORTUNITY TO BUY SOME THINGS IN JAPAN WHICH WE'D LIKE TO BUY BUT ARE TOO EXPENSIVE MR SILVERMAN WHO HAS THE BEST 10YEAR RECORD OF ANY STOCKFUND MANAGER CONTINUES TO FAVOR JAPANESE NONLIFE INSURANCE COMPANIES WHICH HE SAYS SELL AT A DISCOUNT TO THE MARKET VALUE OF THEIR INVESTMENTS FOR EXAMPLE HE OWNS NICHIDO FIRE & MARINE INSURANCE AND KOA FIRE & MARINE INSURANCE T ROWE PRICE JAPAN FUND HAS INVESTMENTS IN MANUFACTURING COMPANIES SUCH AS TOKYO ELECTRON A SEMICONDUCTOR EQUIPMENT MAKER HOUSING COMPANIES SUCH AS TAISEI PREFAB AND FIRMS WITH STEADY EARNINGS GROWTH SUCH AS AOYAMA TRADING A DISCOUNT RETAILER OF MEN'S SUITS MR WARREN IS AVOIDING BANKS WHICH HE CALLS GENUINELY UNATTRACTIVE AND COMMODITY COMPANIES SUCH AS PAPER AND CEMENT FIRMS WHOSE PRODUCTS OUGHT IN THE FUTURE TO BE IMPORTED BY JAPAN FROM THE REST OF ASIA MS ALLAN OF JAPAN FUND IS BETTING ON THE JAPANESE CONSUMER JAPAN IS RICH SHE SAYS JAPANESE CONSUMPTION IS GOING TO DO VERY WELL HER FUND OWNS SEGA ENTERPRISES AND CAPCOM TWO ENTERTAINMENT SOFTWARE COMPANIES AND SONY MUSIC ENTERTAINMENT WHICH WAS LISTED SEPARATELY FROM SONY CORP LAST YEAR SHE ALSO LIKES AUTOBACS SEVEN A RETAILER OF AUTO PARTS 9306240095 930624 ECONOMY SALES RATE FOR CARS LIGHT TRUCKS EASES BUT IS WELL ABOVE YEAREARLIER PACE BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT THE SELLING PACE OF NORTH AMERICANBUILT VEHICLES EASED IN MIDJUNE FROM THE PREVIOUS 30DAY PERIOD BUT ANALYSTS SAID THE INDUSTRYWIDE RECOVERY STILL APPEARS TO BE ON TRACK DOMESTIC CARS AND LIGHT TRUCKS SOLD AT A SEASONALLY ADJUSTED ANNUAL PACE OF 117 MILLION VEHICLES IN THE JUNE 1120 PERIOD DOWN FROM THE 123 MILLION PACE IN THE PREVIOUS 30DAY PERIOD BUT STILL MUCH HIGHER THAN THE LETHARGIC 109 MILLION RATE IN THE YEAREARLIER PERIOD THE DECLINE IN THE PACE OF AUTO SALES DURING THE LATEST 10 DAYS COINCIDED WITH THE RELEASE OF OTHER DATA INDICATING THAT THE ECONOMIC RECOVERY IS STILL WEAK BUT INDUSTRY ANALYSTS SAID THE OUTLOOK FOR VEHICLE SALES REMAINS STRONG THIS IS STILL VERY HEALTHY SAID JACK KIRNAN SALOMON BROTHERS AUTO ANALYST THERE'S A LOT OF BUILTIN SUSTAINABILITY MR KIRNAN SAID BUYING INTENTIONS FOR NEW CARS ARE AT A SIXYEAR HIGH ADDITIONALLY HE SAID AUTOLOAN RATES ARE AVERAGING 8 AT COMMERCIAL BANKS DOWN FROM 10 SIX MONTHS AGO ONE PERIOD BELOW 12 MILLION ISN'T SURPRISING SAID STEPHEN GIRSKY PAINEWEBBER INC'S AUTO ANALYST THE AUTO INDUSTRY IS STILL ONE OF THE FEW AREAS OF THE ECONOMY STRENGTHENING OVERALL THE INDUSTRY SOLD 317926 DOMESTICALLY BUILT CARS AND LIGHT TRUCKS IN THE JUNE 1120 PERIOD UP 54 FROM A YEAR EARLIER DOMESTIC CAR SALES ROSE 01 WHILE SALES OF NORTH AMERICANBUILT LIGHT TRUCKS SURGED 134 THERE WERE EIGHT SELLING DAYS IN THE PERIOD COMPARED WITH NINE A YEAR EARLIER FORD MOTOR CO'S TOTAL VEHICLE SALES CLIMBED 34 IN MIDJUNE HELPED BY A 15 BOOST IN ITS DOMESTIC LIGHT TRUCKS BUT FORD'S DOMESTIC CAR SALES FELL FOR THE FIRST TIME THIS YEAR DECREASING 58 FROM THE YEAREARLIER PERIOD DECLINE FOR GM GENERAL MOTORS CORP'S TOTAL VEHICLE SALES WERE OFF 08 FROM A YEAR EARLIER HURT BY A 4 DROP IN DOMESTIC CAR SALES WHILE IT POSTED A 79 RISE IN DOMESTIC TRUCK SALES SOME JAPANESE AUTO MAKERS ALSO POSTED LOWER SALES HONDA MOTOR CO'S TOTAL VEHICLE SALES PLUNGED 19 FROM THE YEARBEFORE PERIOD SALES OF ITS OLDER ACCORD CONTINUED TO DROP FALLING 373 TOYOTA MOTOR CORP'S TOTAL VEHICLE SALES SLIPPED 37 LARGELY PULLED DOWN BY A 218 DROP IN SALES OF IMPORTED TRUCKS AND A 61 DECLINE FOR ITS IMPORTED CARS MAZDA MOTOR CO HOWEVER REPORTED A 626 BOOST IN ITS VEHICLE SALES FROM A YEAR EARLIER NISSAN MOTOR CO POSTED A 484 JUMP IN SALES OF ITS NORTH AMERICANBUILT VEHICLES CHRYSLER CORP'S VEHICLE SALES ROSE 263 IN MIDJUNE FROM THE YEAREARLIER PERIOD ACCORDING TO WARD'S AUTOMOTIVE REPORTS CHRYSLER RELEASES ITS SALES ON A MONTHLY BASIS ONLY 9306240093 930624 TECHNOLOGY TIME WARNER BABY BELL MAY COMPETE IN SAN DIEGO NEW YORK TIME WARNER INC'S CABLE TELEVISION UNIT SAID IT IS SEEKING REGULATORY APPROVAL TO OFFER TELECOMMUNICATIONS SERVICES IN SAN DIEGO IN COMPETITION WITH PACIFIC TELESIS GROUP'S PACIFIC BELL UNIT FOR BUSINESS CUSTOMERS THE COMPANY SAID IT WOULD BUILD A FIBEROPTIC NETWORK TO CONNECT THE LOCAL BUSINESSES TO LONGDISTANCE CARRIERS AND TO LINK OFFICES OF COMPANIES IN THE AREA OTHER SERVICES TO BE OFFERED INCLUDE VIDEO CONFERENCING AND DATA TRANSPORT TIME WARNER ALREADY OFFERS LOCAL CONNECTIONS TO LONGDISTANCE CARRIERS IN INDIANAPOLIS AND KANSAS CITY LAST MONTH MOREOVER IT ANNOUNCED THE PURCHASE OF A 50 STAKE IN METROCOM IN COLUMBUS OHIO A VENTURE THAT ALSO PROVIDES LOCAL LONGDISTANCE CONNECTIONS TIME WARNER ALSO IS IN A JOINT VENTURE THAT PROVIDES SIMILAR SERVICES IN CHARLOTTE NC CONSTRUCTION OF THE SAN DIEGO SYSTEM IS EXPECTED TO BE COMPLETED BY 1994 WITH SERVICE TO BEGIN IN 1995 MANY OF THE MAJOR CABLE TELEVISION COMPANIES HAVE TARGETED TELECOMMUNICATIONS AS A POTENTIALLY LUCRATIVE MARKET AND ARE SEEKING IN PARTICULAR TO COMPETE AGAINST LOCAL PHONE COMPANIES IN CONNECTING BUSINESSES TO LONGDISTANCE CARRIERS TIME WARNER FOR EXAMPLE HAS ESTIMATED THAT THE LOCAL LONG DISTANCE CONNECTIONS GENERATE ANNUAL REVENUE OF 28 BILLION 8 BILLION MORE THAN TOTAL REVENUE FOR THE CABLETV INDUSTRY 9306240092 930624 REPORTS OF FOOD POISONING AT A TACO BELL SOAR TO 599 REPORTS OF FOOD POISONING FROM CUSTOMERS AT A TACO BELL RESTAURANT IN SYRACUSE NY SOARED TO 599 BUT STATE HEALTH AUTHORITIES HAVEN'T DETERMINED WHAT CAUSED THE AILMENT AS OF YESTERDAY 41 CASES OF SALMONELLA HAD BEEN CONFIRMED BY THE ONONDAGA COUNTY HEALTH DEPARTMENT AND EIGHT SUFFERERS HAD BEEN HOSPITALIZED ACCORDING TO KEVIN ZIMMERMAN SUPERVISOR OF THE FOOD PROTECTION SECTION AT THE HEALTH DEPARTMENT FOUR TACO BELL EMPLOYEES AT THE SYRACUSE RESTAURANT REPORTED SYMPTOMS THE COMPANY SAID THE STATE HEALTH DEPARTMENT WHICH IS ANALYZING 30 INGREDIENTS FROM THE RESTAURANT TO PINPOINT A CAUSE FOR THE OUTBREAK IS EXPECTED TO REPORT ITS FINDINGS THIS WEEK LOCAL OFFICIALS HAVE SAID THE FASTFOOD CHAIN A PEPSICO INC UNIT SHUT THE RESTAURANT SUNDAY FOR ABOUT 24 HOURS AFTER THE FIRST CASE OF SALMONELLA WAS CONFIRMED TO CLEAN IT AND DUMP ALL FOOD BEFORE REOPENING NO NEW CASES HAVE BEEN REPORTED FROM CUSTOMERS WHO HAVE EATEN AT THE RESTAURANT SINCE IT REOPENED HEALTH OFFICIALS SAID SALES OUTSIDE OF THE SYRACUSE AREA WEREN'T AFFECTED BY THE REPORTS A COMPANY SPOKESWOMAN SAID THERE WAS A SIGNIFICANT DECLINE IN SALES AT THE ONE RESTAURANT INVOLVED AND A SLIGHT DIP AT THE CITY'S NINE OTHER TACO BELLS BUT SALES NOW ARE IMPROVING SHE SAID 9306240091 930624 TECHNOLOGY & SCIENCE LAWMAKER BACKS MODEST RELAXATION OF ABORTION CURBS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON REP WILLIAM NATCHER CHAIRMAN OF THE HOUSE APPROPRIATIONS COMMITTEE SAID HE WILL SEEK A MODEST RELAXATION OF MEDICAID RESTRICTIONS TO ALLOW FEDERAL FUNDING OF ABORTIONS FOR POOR WOMEN IN CASES OF RAPE AND INCEST THE KENTUCKY DEMOCRAT'S COMMENTS FOLLOWED A PRIVATE MEETING YESTERDAY WITH DONNA SHALALA THE HEALTH AND HUMAN SERVICES SECRETARY AND IN THE ABSENCE OF A CLEAR AGREEMENT WITH THE CLINTON ADMINISTRATION ON HOW TO PROCEED THE CHAIRMAN APPEARS MOST COMFORTABLE WITH MOVING SLOWLY IN LIFTING CURBS ON THE HEALTHCARE PROGRAM THE ADMINISTRATION HAS SEEMED RELUCTANT TO COMMIT ITSELF TO A POSITION BECAUSE ANY COMPROMISE NOW COULD HAVE IMPLICATIONS FOR THE WHITE HOUSE IN SHAPING ITS LARGER HEALTHCARE PACKAGE FOR ABORTIONRIGHTS ACTIVISTS THE ISSUE IS DIFFICULT BECAUSE IT OPENS A POTENTIAL SPLIT BETWEEN THE MOVEMENT'S OFTEN MIDDLECLASS CADRE WITH A STAKE IN HEALTH REFORM AND POOR WOMEN AFFECTED BY MEDICAID RULES THE MANEUVERING COMES AS THE HOUSE PANEL PREPARES TO TAKE UP A NEARLY 260 BILLION BILL TO FINANCE LABOR EDUCATION AND HEALTH PROGRAMS FOR THE COMING FISCAL YEAR AT THE REQUEST OF SECRETARY SHALALA MR NATCHER'S HEALTH SUBCOMMITTEE WITHHELD ATTACHING ANY MEDICAID RESTRICTIONS EARLIER THIS MONTH BUT THIS POSITION IS TOO BROAD TO SURVIVE ATTACKS FROM ANTIABORTION FORCES AND THE KENTUCKIAN HAS A PERSONAL STAKE IN FINDING A COMPROMISE THAT WILL PROTECT HIS BILL I'M NOT ASKING THE PRESIDENT TO TAKE ANY POSITION ON THIS AT ALL MR NATCHER SAID IN AN INTERVIEW I'M GOING TO SEE WHAT I'VE GOT I JUST HOPE IN THE END THAT THE PRESIDENT WILL SIGN THE BILL MS SHALALA WALKED PAST A REPORTER WITHOUT COMMENT AFTER THE MEETING BUT AN AIDE WAS OVERHEARD TELLING THE SECRETARY WE'LL LET THE COMMITTEE WORK ITS WILL MUCH THE SAME SIGNAL WAS SENT BY THE WHITE HOUSE LAST NIGHT AND IN THE ABSENCE OF WAIVERS BY THE RULES COMMITTEE THE ADMINISTRATION REMAINS RELUCTANT TO COMMIT ITSELF GIVEN THAT ANY PROPOSAL NOW COULD STILL BE STRIPPED OUT ON PROCEDURAL GROUNDS WHEN THE BILL GOES TO THE FLOOR NEXT WEEK MEASURED AGAINST THE DEFEATS IN THE LAST CONGRESS MR NATCHER'S POSITION IS STILL A TRIUMPH OF SORTS FOR THE ABORTIONRIGHTS MOVEMENT CURRENT LAW PERMITS FEDERAL FUNDING FOR MEDICAID ABORTIONS ONLY WHEN THE MOTHER'S LIFE IS IN DANGER AND FORMER PRESIDENT BUSH USED HIS VETO POWER TO FRUSTRATE EXACTLY THE CHANGES THE CHAIRMAN IS NOW EMBRACING BY THE SAME TOKEN ANTIABORTION FORCES HAVE PRIVATELY CONCEDED THAT THE NATCHER PROPOSAL IS THEIR BEST FALLBACK POSITION AS WELL AND ABORTIONRIGHTS ADVOCATES ARE EXPECTED TO PRESS FOR BROADER GUIDELINES THAT WOULD PERMIT FUNDING FOR ABORTIONS TO PRESERVE THE HEALTH OF THE MOTHER SEPARATELY THE SENATE LABOR AND HUMAN RESOURCES COMMITTEE VOTED 143 TO APPROVE A BILL AIMED AT PROHIBITING VIOLENCE AND BLOCKADES AT ABORTION CLINICS APPROVAL CAME AFTER THE REJECTION OF SEVERAL CHANGES SOUGHT BY COMMITTEE REPUBLICANS SUCH AS SENS DAN COATS OF INDIANA AND ORRIN HATCH OF UTAH WHO RAISED CONCERNS THAT THE BILL FAILED TO PROTECT THE FIRST AMENDMENT RIGHTS OF ANTIABORTION PROTESTERS 9306240090 930624 BUSINESS BRIEF INCO LTD NICKEL COMPANY MULLS SALE OF STAKE IN GOLD BUSINESS INCO LTD SAID IT MAY SELL ITS 62 STAKE IN TVX GOLD INC WHICH HAS A MARKET VALUE OF 4155 MILLION CANADIAN DOLLARS US3252 MILLION IN A BID TO EASE INCO'S CASH CRUNCH BROUGHT ON BY SAGGING NICKEL PRICES AN INCO SPOKESMAN SAID THE TORONTO COMPANY HAS BEEN APPROACHED BY PARTIES INTERESTED IN ACQUIRING THE STAKE IN A FILING WITH THE US SECURITIES AND EXCHANGE COMMISSION INCO SAID IT IS CONSIDERING A NUMBER OF POSSIBLE TRANSACTIONS INCLUDING MERGING TVX WITH ANOTHER COMPANY OR SELLING THE STAKE OUTRIGHT EITHER PUBLICLY OR PRIVATELY INCO ACQUIRED ITS STAKE IN TVX IN 1991 BY CONSOLIDATING ITS VARIOUS GOLD MINING ASSETS AND MERGING THEM WITH ANOTHER GOLD CONCERN IN TORONTO STOCK EXCHANGE TRADING YESTERDAY TVX SHARES CLOSED AT C5 UP 15 CANADIAN CENTS INCO SHARES CLOSED AT C2925 DOWN 125 CANADIAN CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE INCO SHARES FELL 125 CENTS TO CLOSE AT 22875 9306240089 930624 BUSINESS BRIEF PSA PEUGEOT CITROEN SA FRENCH CAR MAKER HOPES TO BREAK EVEN FOR FULL YEAR FRENCH CAR MAKER PSA PEUGEOT CITROEN SA BATTERED BY FALLING SALES AND ERODED PROFIT MARGINS HOPES TO CONFOUND FINANCIAL ANALYSTS BY BREAKING EVEN THIS YEAR ADDRESSING SHAREHOLDERS CHAIRMAN JACQUES CALVET SAID HE DOESN'T SHARE THE VIEW OF ANALYSTS WHO PREDICT PEUGEOT WILL PLUNGE INTO THE RED IN 1993 MARKET ESTIMATES FOR PEUGEOT'S 1993 EARNINGS RANGE FROM A LOSS OF 15 BILLION FRANCS 2629 MILLION TO 25 BILLION FRANCS COMPARED WITH LAST YEAR'S 337 BILLION FRANC PROFIT PEUGEOT'S NET INCOME HAS BEEN SHRINKING STEADILY SINCE THE 103 BILLION FRANC PEAK RECORDED IN 1989 COMPANY OFFICIALS SAID THAT ALTHOUGH THEY ARE RULING OUT A SUBSTANTIAL PROFIT FOR 1993 A LOSS OF THE MAGNITUDE PREDICTED BY ANALYSTS IS ALSO UNREALISTIC EUROPEAN CAR SALES HAVE PLUNGED 17 BELOW THOSE OF A YEAR BEFORE BUT MR CALVET AND OTHER PEUGEOT EXECUTIVES SAID THEY ARE CONFIDENT SALES WILL START RECOVERING LATER THIS YEAR MR CALVET SAID ANOTHER ROUND OF JOB CUTS IS INEVITABLE THIS YEAR PEUGEOT CUT ITS WORK FORCE BY 6000 LAST YEAR TO 15800 9306240088 930624 LETTERS TO THE EDITOR AWEINSPIRING MEMORY OF OLD CINCINNATI I WAS DELIGHTED TO SEE THE MAY 19 LEISURE & ARTS ARTICLE ABOUT THE CINCINNATI ART MUSEUM IT BROUGHT BACK A FLOOD OF MEMORIES BEGINNING AT AGE FOUR WITH MY FIRST GLIMPSE OF THE IMPOSING BUILDING FROM THE NO 49 CAR LINE WHICH ALSO PASSED THE ROOKWOOD POTTERY ON ITS WAY TO THE CAGE AT THE INCLINE TO DOWNTOWN CINCINNATI DURING MY HIGH SCHOOL DAYS ON THE SUNDAY BEFORE CHRISTMAS A CAPPELLA CHOIRS FROM THREE HIGH SCHOOLS AND THE BRASS CHOIR FROM ANOTHER HIGH SCHOOL PRESENTED A PROGRAM IN THE ROTUNDA WITH EACH CHOIR PRESENTING ITS OWN PROGRAM IN FRONT OF ONE OF THE IMPOSING STAIRCASES AND THE BRASS CHOIR PERFORMING ON THE BALCONY AFTER THE FOUR PRESENTATIONS THE CHOIRS GROUPED ON THE STAIRCASE AND THE ENTIRE COMPANY INCLUDING THE PACKED AUDIENCE SANG CAROLS THE SOUND OF THE MUSIC IN THAT SPACE WAS AWEINSPIRING I WAS APPALLED TO READ WHAT HAD HAPPENED TO THE MUSEUM IN THE '50S AND AM GLAD TO KNOW THAT INTELLIGENT PEOPLE HAVE RESTORED IT AND USED ITS IMPOSING SPACE TO BEST ADVANTAGE INCIDENTALLY THE GREENE & GREENEDESIGNED GABLE HOUSE IN PASADENA HAS SOME OF THE BEST EXAMPLES OF ROOKWOOD POTTERY IN ITS INTERIOR DESIGN IT WAS BUILT FOR THE GAMBLE FAMILY OF PROCTER & GAMBLE 9306240087 930624 COMMODITIES AUGUST GOLD FUTURES CLIMB TO 37550 AN OUNCE WHILE JULY SILVER PRICES UNEXPECTEDLY SURGE BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES JUMPED 580 AN OUNCE IN WHAT ANALYSTS SAID WAS A MOSTLY TECHNICAL RALLY ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY SETTLED AT 37550 UP SHARPLY FROM 36970 TUESDAY WE DROPPED BELOW 368 EARLIER IN THE DAY BUT THERE WAS NO FOLLOW THROUGH AND THE MARKET RALLIED SAID BERNARD SAVAIKO AN ANALYST WITH PAINEWEBBER TRADERS SAID THAT GOLD A CLASSIC HEDGE AGAINST INFLATION ATTRACTED SOME BUYING INTEREST ON FURTHER APPRECIATION OF THE COMMODITY RESEARCH BUREAU INDEX OF 21 FUTURES CONTRACTS A CLOSELY FOLLOWED BAROMETER OF INFLATION AT THE RAW MATERIAL LEVEL THE CRB INDEX ENDED AT 20670 UP 108 ON SIGNS OF FURTHER PRICE APPRECIATION IN SOYBEANS AND OTHER GRAINS EARLIER THIS MONTH THE CRB HAD SLIPPED TO A RECENT LOW OF 203 I THINK THE STRENGTH IN THE GRAIN MARKETS HELPED GOLD SAID STEPHEN PLATT A VICE PRESIDENT AND SENIOR COMMODITY ANALYST WITH DEAN WITTER IN CHICAGO I'M STILL BULLISH TO 380 AN OUNCE IN THE NEAR TERM MR PLATT SAID I THINK WE CAN EVENTUALLY GO HIGHER GIVEN THE SUPPLY AND DEMAND SITUATION AND THE APPEARANCE THAT INVESTMENT DEMAND IS STILL BUOYANT DENISE GIORDANO WHO OVERSEES GOLD TRADING FOR SWISS BANK IN NEW YORK SAID THAT GOLD'S WEAKER PERFORMANCE IN RECENT DAYS HAD BEGUN TO CREATE A BEARISH TONE AMONG EUROPEAN INVESTORS THOSE INVESTORS HOWEVER WERE FORCED TO COVER THEIR SHORT POSITIONSOR WAGERS THAT PRICES WOULD DECLINEWHEN GOLD STARTED TO RALLY THE DOLLAR'S DRAMATIC RISE AGAINST THE DEUTSCHE MARK HAS BEEN CREATING A BEARISH TONE FOR GOLD IN EUROPE SHE SAID BUT WHEN THE DOLLAR STARTED TO EASE AND THE US STOCK MARKET FELL BACK FRESH BUYING OF GOLD REEMERGED IN NEW YORK AND EUROPEAN BANKERS COVERED THEIR SHORT POSITIONS GOLD TENDS TO MOVE INVERSELY WITH THE DOLLAR IN OTHER PRECIOUS METALS ACTIVITY SILVER FOR JULY DELIVERY SHOT UP 135 CENTS TO 4395 AN OUNCE ON THE COMEX MR SAVAIKO THE PAINEWEBBER ANALYST SAID HE WAS AT A LOSS TO EXPLAIN THE SURGE IN SILVER FUTURES BECAUSE THE METALFAR MORE WIDELY USED IN INDUSTRY THAN GOLDNORMALLY MOVES LOWER ON SIGNS OF WEAKNESS IN THE ECONOMY MOST INDICATORS SUGGEST A WEAKENING IN THE MANUFACTURING SECTOR NOT A STRENGTHENING HE SAID ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JULY DELIVERY SETTLED 470 HIGHER AT 38070 AN OUNCE WHILE PALLADIUM FOR SEPTEMBER DELIVERY CLOSED UNCHANGED AT 12700 AN OUNCE IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM PRICES SHOWED MODEST GAINS BUT NATURAL GAS FUTURES PLUNGED NATURAL GAS FOR JULY DELIVERY FELL 168 CENTS ON THE NEW YORK MERCANTILE EXCHANGE TO SETTLE AT 1918 PER MILLION BRITISH THERMAL UNITS A MILLION BTUS IS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET OF NATURAL GAS TRADERS CITED YESTERDAY'S EXPIRATION OF THE JULY FUTURES CONTRACT AS ONE REASON FOR THE MASSIVE SELLOFF IN GAS THE AUGUST GAS CONTRACT ALSO WAS DOWN BUT BY A LESSER AMOUNT IT SETTLED EIGHT CENTS LOWER AT 2089 PER MILLION BTUS ATTEMPTED RALLIES IN THE OIL MARKET HELPED TO PUSH CRUDE OIL FUTURES SLIGHTLY HIGHER HOWEVER CRUDE OIL FOR AUGUST DELIVERY ROSE FOUR CENTS TO SETTLE AT 1886 A BARREL ALTHOUGH THE AUGUST CRUDE REACHED 1898 DURING THE DAY'S TRADING IT WAS UNABLE TO BREAK THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 19 A BARREL STOCK PRICES OF SEVERAL MAJOR OIL COMPANIES DROPPED MEANWHILE AS SOME BROKERAGE FIRMS DOWNGRADED THEIR SHARES BECAUSE OF EXPECTATIONS OF A CONTINUED WEAKNESS IN PETROLEUM PRICES GRAINS & SOYBEANS SOYBEAN PRICES RESUMED RALLYING AS GRAIN TRADERS CONTINUED TRIMMING THEIR ESTIMATES OF PLANTED ACREAGE IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR JULY DELIVERY JUMPED 925 CENTS A BUSHEL TO SETTLE AT 62475 A BUSHEL SEVERAL TRADERS HAVE TRIMMED THEIR PLANTING ESTIMATES BY ABOUT 15 MILLION ACRES IN RECENT DAYS BECAUSE EXCESSIVE RAINS ACROSS THE MIDWEST ARE PREVENTING FARMERS IN STATES SUCH AS IOWA AND MINNESOTA FROM COMPLETING THEIR PLANTING THE UNUSUALLY RAINY WEATHER MIGHT ALSO REDUCE SOYBEAN YIELD WHICH COMBINED WITH SMALLER ACREAGE COULD REDUCE THE POTENTIAL SIZE OF THE US SOYBEAN HARVEST BY HUNDREDS OF MILLIONS OF BUSHELS DANIEL W BASSE RESEARCH DIRECTOR AT AGRESOURCE CO CHICAGO SAID A RAINSTUNTED SOYBEAN HARVEST THIS FALL MIGHT REDUCE US SOYBEAN STOCKPILES TO AN UNCOMFORTABLY TIGHT LEVEL OF LESS THAN 250 MILLION BUSHELS BY AUGUST 1994 PRICES OF SOYBEAN FUTURES CONTRACTS SLIPPED TUESDAY AMID PROFITTAKING BY TRADERS WHEAT PRICES WERE SUPPORTED BY TRADE REPORTS THAT THE CLINTON ADMINISTRATION WILL OFFER TO SUBSIDIZE THE OVERSEAS SALE OF ABOUT 32 MILLION METRIC TONS 353 SHORT TONS OF US CROPS UNDER THE ANNUAL EXPORT ENHANCEMENT PROGRAM SUCH A PACKAGE WOULD BE A FEW MILLION METRIC TONS LARGER THAN THE FINAL PACKAGE ARRANGED BY THE BUSH ADMINISTRATION UNDER THE PROGRAM THE US GOVERNMENT COMPENSATES EXPORTERS THAT SHIP DISCOUNTPRICED FARM COMMODITIES TO SELECTED NATIONS THE MAJORITY OF US WHEAT EXPORTS ARE SUBSIDIZED IN THIS MANNER THE PROGRAM WAS CREATED IN THE 1980S TO HELP THE US FARM ECONOMY COMPETE AGAINST A RISING TIDE OF GRAIN EXPORTS FROM THE EUROPEAN COMMUNITY ACCORDING TO TRADERS MEXICO IS BEING INCLUDED AS A COUNTRY ELIGIBLE TO RECEIVE SUBSIDIZED CROPS SUCH A MOVE SIGNALS THE CLINTON ADMINISTRATION IS WILLING TO USE SUBSIDIES TO COUNTER CANADA'S RISING GRAIN SALES TO MEXICO 9306240086 930624 LETTERS TO THE EDITOR YOUR TREE EDITORIAL GOES OUT ON A LIMB YOUR MAY 10 EDITORIAL WEAK LIMB TAKES AIM AT URBAN TREE PLANTING PROGRAMS AS A NEW INSIDIOUS FORM OF PORK BARREL WITH TREES CAST IN THE ROLE OF THE LEGENDARY 5000 GOVERNMENTBOUGHT TOILET SEAT UNFORTUNATELY YOUR READERS MAY CONCLUDE BASED ON TWO DUBIOUS EXAMPLES THAT THESE PROGRAMS ARE INHERENTLY WASTEFUL WITH LITTLE IF ANY TANGIBLE BENEFIT TO THE TAXPAYER IN FOCUSING PUBLIC ATTENTION ON ANECDOTES SUCH AS THESE WE MAY BE MISSING THE FOREST FOR THE TREES TREES PROVIDE MEASURABLE ECONOMIC AND ENVIRONMENTAL BENEFITS NOT TO MENTION A MEASURE OF AESTHETIC IMPROVEMENT WHICH IS SORELY NEEDED IN MANY OF OUR NATION'S URBAN AREAS YES IT COSTS MONEY TO PLANT AND MAINTAIN TREES IN URBAN AREAS THE EXTREMES IN TEMPERATURE AND POLLUTION TAKE A HEAVY TOLL ON TREES THAT ARE ILLSUITED TO THE OFTEN HARSH URBAN ENVIRONMENT BUT THERE IS A RETURN ON THAT INVESTMENT IN FACT A SINGLE MATURE URBAN TREE CAN PROVIDE UP TO 275 A YEAR IN COOLING POLLUTIONFIGHTING ANTIEROSION STORM CONTROL AND WILDLIFE SHELTER BENEFITS UNLIKE OTHER PARTS OF THE URBAN INFRASTRUCTURE THE RIGHT TREE IN THE RIGHT PLACE ACTUALLY APPRECIATES IN VALUE 9306240085 930624 BUSINESS BRIEF INFORMATION AMERICA INC CONCERN PLANS TO BUY 3 UNITS OF PARAMOUNT PUBLISHING INFORMATION AMERICA INC IN A MOVE THAT COULD MORE THAN QUADRUPLE ITS SIZE SAID IT WILL BUY THREE UNITS OF PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PUBLISHING TERMS WEREN'T DISCLOSED INFORMATION AMERICA WHICH PROVIDES INFORMATION SERVICES TO LAWYERS AND GOVERNMENT AGENCIES SAID IT WILL ISSUE COMMON STOCK DEBT PREFERRED STOCK COMMON STOCK WARRANTS AND OPTIONS IN THE NONCASH TRANSACTION PARAMOUNT WILL OWN APPROXIMATELY 49 OF THE INFORMATION AMERICA'S COMMON SHARES OUTSTANDING THE ATLANTA COMPANY SAID IT CURRENTLY HAS 49 MILLION SHARES OUTSTANDING PARAMOUNT ALSO WILL HOLD FOUR OF THE NINE SEATS ON THE COMPANY'S BOARD AND COULD INCREASE OWNERSHIP TO 60 SUBJECT TO THE CONDITION THAT INFORMATION AMERICA RETAIN MANAGERIAL CONTROL THE THREE OPERATING UNITS TO BE ACQUIRED ARE PRENTICE HALL LEGAL AND FINANCIAL SERVICES PRENTICE HALL LEGAL PRACTICE MANAGEMENT AND PRENTICE HALL PROFESSIONAL SOFTWARE COLLECTIVELY THE UNITS POSTED 83 MILLION IN REVENUE LAST YEAR INFORMATION AMERICA REPORTED REVENUE OF 183 MILLION IN 1992 9306240084 930624 LETTERS TO THE EDITOR HEY GIVE NEW YORK WORKERS A BREAK WILLY RUEFENACHT PRESIDENT OF HELIMA HELVETION INTERNATIONAL OF DUNCAN SC ERRED WHEN HE TOLD YOUR REPORTER THAT NEW YORK WORKERS WOULD SAY YOU'RE CRAZY IF YOU ASKED THEM TO COME IN TO WORK ON A SATURDAY WHY GERMAN FIRMS CHOOSE THE CAROLINAS TO BUILD US PLANTS PAGE ONE MAY 4 THE NEW YORK WORKER IN FACT HAS AN OUTSTANDING WORK ETHIC NEW YORK WORKERS ARE AMONG THE MOST PRODUCTIVE IN THE NATION ACCORDING TO THE 1990 ANNUAL SURVEY OF MANUFACTURERS NEW YORK RANKED FOURTH WITH 582 OF ADDED VALUE FOR EVERY 1 IN WAGES 25 ABOVE THE NATIONAL AVERAGE BY CONTRAST NORTH CAROLINA RANKED 15TH AT 528 AND SOUTH CAROLINA 45TH AT 404 MR RUEFENACHT'S COUNTERPARTS AMONG AMERICANBASED EXECUTIVES OF GERMAN BUSINESSES ALSO DO NOT SHARE HIS PERCEPTIONS OF THE NEW YORK WORK FORCE THEY LIKE DOING BUSINESS IN NEW YORK THE STATE IS SECOND ONLY TO CALIFORNIA WITH 36800 PEOPLE EMPLOYED BY GERMANOWNED FIRMS COMPARED WITH 31800 IN NORTH CAROLINA AND 16700 IN SOUTH CAROLINA NEW YORK STATE IS AN AMERICAN LOCATION OF CHOICE FOR FOREIGNOWNED BUSINESSES OVERALL IN 1990 349200 PEOPLE IN NEW YORK STATE WERE EMPLOYED BY FOREIGNOWNED FIRMS SECOND ONLY TO CALIFORNIA AND 225 MORE THAN IN NORTH AND SOUTH CAROLINA COMBINED ACCORDING TO DATA PUBLISHED BY THE US DEPARTMENT OF COMMERCE AND CONTRARY TO YOUR ASSERTION NEW YORKERS WILL INDEED COME IN TO WORK ON SATURDAYS SOMETIMES MORE OFTEN THAN WORKERS FROM THE CAROLINAS THE AVERAGE FACTORY WORKWEEK IN UPSTATE LABOR MARKET AREAS INCLUDING ALBANY SYRACUSE ROCHESTER AND BUFFALO IS COMPARABLE TO AND IN SOME CASES HIGHER THAN THAT OF MAJOR LABOR MARKET AREAS IN NORTH AND SOUTH CAROLINA YOUR ARTICLE WAS PARTICULARLY INSULTING TO THE NEW YORK WORK ETHIC IT IS UNFORTUNATE THAT MR RUEFENACHT MUST HAVE MET WITH AN UNPLEASANT EXPERIENCE IN THE PAST AND MY WISH FOR ALL U S/GERMAN MANUFACTURERS IS ALL THE BEST OF SUCCESS BECAUSE AS A GROUP THEY SUPPLY US WITH RAW MATERIALS AND PURCHASE OUR FINISHED PRODUCTS MY EXPERIENCE IN NEW YORK WITH A PIGMENT MANUFACTURER HAS BEEN QUITE DIFFERENT NOT SO MANY MONTHS AGO AND FOR A PERIOD OF 12 YEARS MY POSITION OF MAINTENANCE COORDINATOR AND SUPERVISOR PERMITTED ME THE HONOR TO SUPERVISE AND WORK ALONGSIDE THE FINEST MAINTENANCE AND MANUFACTURING PERSONNEL IN THE WORLD OUR PERSONNEL ARE ON CALL FOR EMERGENCIES ANY HOUR OF THE DAY OR NIGHT ANY DAY OF THE WEEK PLANT WORKERS ALSO REGULARLY STAY LATE AS NEEDED AND COME IN SATURDAYS AND SUNDAYS IF NEEDED IN ADDITION TO THEIR LOYALTY AND WORK ETHIC THEIR CONSCIENTIOUSNESS TO QUALITY HAS EARNED OUR COMPANY THE BEST RAW MATERIAL SUPPLIER AWARD FOR 1992 FROM ONE OF THE MOST HIGHLY REGARDED GERMAN/CAROLINA MANUFACTURERS OUR EMPLOYEES ARE OUR STRENGTH AND SECOND TO NONE THEY MANUFACTURE IN NEW YORK WITH PRIDE 9306240083 930624 PACT GIVES CONTROL OF O&Y'S US UNIT TO 9MEMBER BOARD BY LARRY M GREENBERG STAFF REPORTER OF THE WALL STREET JOURNAL CREDITORS AND EQUITY HOLDERS OF OLYMPIA & YORK DEVELOPMENTS LTD'S US SUBSIDIARY AGREED ON HOW THE UNIT WILL BE GOVERNED IN A MOVE THE COMPANY SAYS WILL BOLSTER ITS EFFORTS TO RESTRUCTURE ITS 53 BILLION OF DEBT THE AGREEMENT WAS FORGED WITH THE HELP OF FORMER SECRETARY OF STATE CYRUS VANCE WHO WAS APPOINTED BY THE US BANKRUPTCY COURT TO MEDIATE IN A LONGRUNNING DISPUTE BETWEEN THE CREDITORS AND EQUITY HOLDERS OF THE UNIT UNDER THE PACT CONTROL OF THE UNIT OLYMPIA & YORK COS USA WILL REST WITH A NINEMEMBER BOARD MADE UP PRIMARILY OF INDEPENDENT DIRECTORS WITH PROMINENT BUSINESS AND GOVERNMENT BACKGROUNDS THE AGREEMENT SATISFIES O&Y USA'S CREDITORS WHO WERE CONCERNED THAT THE CONTROLLING SHAREHOLDER REPRESENTED BY THE CANADIAN COURTAPPOINTED ADMINISTRATOR TO OLYMPIA & YORK DEVELOPMENTS COULD SEEK TO CONTROL THE US UNIT AT THE SAME TIME THE ADMINISTRATOR WAS ANXIOUS TO FULFILL HIS RESPONSIBILITIES TO THE EQUITY HOLDERS MAINLY BANK CREDITORS TO THE TORONTO PARENT COMPANY WHICH EMERGED FROM CANADIAN BANKRUPTCYCOURT PROTECTION IN MARCH OUR OVERALL PLAN IS TO CONTINUE TO WORK WITH MANAGEMENT TO ACHIEVE A CONSENSUAL RESTRUCTURING THAT WILL BENEFIT BOTH CREDITORS AND EQUITY THE ADMINISTRATOR ROBERT E LOWE OF ACCOUNTING FIRM COOPERS & LYBRAND SAID IN A STATEMENT MEYER S FRUCHER O&Y USA'S EXECUTIVE VICE PRESIDENT DEVELOPMENT SAID THE AGREEMENT GIVES THE COMPANY AN ALLSTAR BOARD THAT WILL ADD ENORMOUS CREDIBILITY WITH BOTH TENANTS AS WELL AS FINANCIAL INSTITUTIONS IT WILL GO A LONG WAY TO HELPING O&Y USA SURVIVE THE AGREEMENT ALSO PROVIDES IMMUNITY FROM LEGAL LIABILITY TO O&Y USA'S EXECUTIVE OFFICERS THE US BANKRUPTCY COURT SET A HEARING FOR JULY 9 TO FORMALLY APPROVE THE AGREEMENT THE COMPANY'S NEW DIRECTORS WILL INCLUDE MR LOWE THE CANADIAN ADMINISTRATOR AND JOHN ZUCCOTTI O&Y USA'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ALSO SITTING ON THE BOARD WILL BE WILLARD BUTCHER A FORMER CHAIRMAN OF CHASE MANHATTAN CORP FREDERICK ROSE A NEW YORK REALESTATE DEVELOPER AND PHILANTHROPIST RICHARD SHINN A FORMER CHAIRMAN OF METROPOLITAN LIFE INSURANCE CO RICHARD RAVITCH A FORMER CHAIRMAN OF NEW YORK'S METROPOLITAN TRANSPORTATION AUTHORITY AND NOW A NEGOTIATOR FOR MAJOR LEAGUE BASEBALL WILLIAM HASSETT CHAIRMAN OF DORMITORY AUTHORITY A NEW YORK STATE AGENCY AND JOHN WHITEHEAD A FORMER CHAIRMAN OF GOLDMAN SACHS AND DEPUTY SECRETARY OF STATE A NINTH DIRECTOR HAS BEEN IDENTIFIED BUT DETAILS OF HIS ACCEPTANCE HAVEN'T BEEN FINALIZED 9306240082 930624 BUSINESS BRIEF HEALTH CARE PROPERTY INVESTORS INC JOINT VENTURE CANCELS TALKS IN TEXAS HOSPITAL PROJECT HEALTH CARE PROPERTY INVESTORS INC SAID NEGOTIATIONS WITH A JOINT VENTURE TO FINANCE AND BUILD A 80 MILLION HEALTHCARE FACILITY IN NORTH AUSTIN TEXAS HAVE BEEN TERMINATED THE LOS ANGELES REAL ESTATE INVESTMENT TRUST IN SEPTEMBER SIGNED A LETTER OF INTENT WITH THE JOINT VENTURE WHOSE PARTNERS ARE HEALTHTRUST INC A NASHVILLE TENN HOSPITAL ADMINISTRATION CONCERN AND AUSTIN DIAGNOSTIC CLINIC A TEXAS PHYSICIANS' GROUP TO FINANCE AND BUILD THE FACILITY KENNETH B ROATH HEALTH CARE'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SAID THE JOINT VENTURE BROKE OFF NEGOTIATIONS BECAUSE WE JUST COULDN'T REACH AN AGREEMENT HE DECLINED FURTHER COMMENT 9306240081 930624 BUSINESS BRIEF EATON CORP AUTOMOTIVE PARTS OPERATION IN EUROPE IS RESTRUCTURED EATON CORP CLEVELAND SAID THAT IT IS RESTRUCTURING AUTOMOTIVE PARTS OPERATIONS IN EUROPE WHICH WILL REDUCE SECONDQUARTER PRETAX EARNINGS BY ABOUT 9 MILLION OR 17 CENTS A SHARE AFTER TAXES EATON SAID THE RESTRUCTURING WHEN COMPLETED AT AN UNIDENTIFIED DATE IS EXPECTED TO INCREASE OPERATING PROFIT BY 6 MILLION THE COMPANY DIDN'T IDENTIFY THE OPERATIONS IN THE YEARAGO QUARTER THE SPECIALTY MATERIALS AND CHEMICALS MAKER HAD NET INCOME OF 42 MILLION OR 123 A SHARE AN EATON SPOKESMAN SAID HE HAD NO FURTHER DETAILS ON THE ANNOUNCEMENT AND THAT SENIOR EXECUTIVES WERE UNAVAILABLE THE WEAK ECONOMY HAS HURT EATON'S EUROPEAN OPERATIONS WHICH GENERATED 861 MILLION OF THE COMPANY'S 39 BILLION SALES IN PARTICULAR AUTOMOTIVE SWITCHMAKER FRANZ KIRSTEN KG WHICH EATON PURCHASED IN JANUARY 1992 COST EATON ABOUT 2 MILLION IN OPERATING PROFIT LAST YEAR 9306240080 930624 INTERNATIONAL CLINTON TO TRAIL FUND'S TARGET TO AID RUSSIA BY CARLA ANNE ROBBINS AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON WITH AMERICA'S ALLIES PLEADING POVERTY AND POLITICAL PRESSURES THE CLINTON ADMINISTRATION NOW EXPECTS TO RAISE JUST 2 BILLION FOR A PROPOSED 4 BILLION MULTILATERAL FUND TO HELP PRIVATIZE RUSSIA'S BIG STATE ENTERPRISES IN THE MOST AMBITIOUS ELEMENT OF PRESIDENT CLINTON'S PLAN TO ENCOURAGE ECONOMIC LIBERALIZATION IN RUSSIA THE US OFFERED IN APRIL TO PUT UP 500 MILLION FOR THE FUND PROVIDED OTHER COUNTRIES CONTRIBUTED 15 BILLION INTERNATIONAL FINANCIAL INSTITUTIONS WERE TO PROVIDE AN ADDITIONAL 2 BILLION BUT REPRESENTATIVES OF THE GROUP OF SEVEN MAJOR INDUSTRIAL NATIONS HAVE BALKED AT THE LARGER NUMBERS US OFFICIALS SAID THEY NOW EXPECT SMALLER CONTRIBUTIONS BY ALLIES COMBINED WITH AN ACCORDINGLY SHRUNKEN US PAYMENT TO ADD UP TO ABOUT 500 MILLION ALTHOUGH THEY SAID THEY WILL CONTINUE TO PRESS FOR MORE THE OFFICIALS EXPECT TO RAISE AN ADDITIONAL 15 BILLION FROM THE WORLD BANK AND THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT PRESIDENT CLINTON WHO PERSONALLY HAS LOBBIED HIS COLLEAGUES IN BRITAIN CANADA GERMANY JAPAN FRANCE AND ITALY TO SUPPORT THE FUND IS HOPING TO UNVEIL THE PROGRAM AT TOKYO ECONOMIC SUMMIT IN EARLY JULY RUSSIAN OFFICIALS HAVE TOLD THE US THAT THE FUND IS A TOP PRIORITY FOR PRESIDENT BORIS YELTSIN PUTTING THE BEST FACE POSSIBLE ON THE EXPECTED COMPROMISE SECRETARY OF STATE WARREN CHRISTOPHER SAID YESTERDAY I THINK WE'LL HAVE PHASE ONE AT LEAST OF THE PRIVATIZATION FUND A VERY SUBSTANTIAL START AND WE'LL ESTABLISH THE PRINCIPLE AND IMPORTANCE OF THE PRIVATIZATION FUND THAT THE CLINTON ADMINISTRATION WAS ABLE TO RAISE EVEN THE SMALLER SUM IS A TESTIMONY TO ITS PERSISTENCE AND THE PRESTIGE IT HAS INVESTED IN THE PROJECT US ALLIES HAVE CAUTIONED FROM THE OUTSET THAT IT WOULD BE POLITICALLY DIFFICULT TO SUPPORT THE CLINTON PROPOSAL WHICH INCLUDES SOME SOCIAL WELFARE FUNDS INCLUDING MONEY TO KEEP OPEN SCHOOLS AND HOSPITALS TRADITIONALLY SUPPORTED BY THE STATE ENTERPRISES US OFFICIALS EMPHASIZE THAT MOST OF THE MONEY WOULD BE USED TO RETOOL FACTORIES AND TO RETRAIN RUSSIAN WORKERS RUSSIAN OFFICIALS HAVE WARNED THAT WITHOUT SOME SOCIAL CUSHION THEY CAN'T POLITICALLY AFFORD TO SHUT DOWN THE MONEYDRAINING INDUSTRIES 9306240078 930624 BUSINESS BRIEF SANBORN INC COMPANY TO DIVEST UNITS TAKE RESTRUCTURING CHARGE SANBORN INC SAID IT WILL DIVEST ITSELF OF CERTAIN DIVISIONS AND TAKE A NONRECURRING RESTRUCTURING CHARGE OF ABOUT 26 MILLION IN ITS SECOND QUARTER THE WRENTHAM MASS WASTE MANAGEMENT COMPANY SAID THAT AS A RESULT OF THE CHARGE AND OTHER UNSPECIFIED CURRENT EVENTS IT IS IN DEFAULT OF BANK CREDIT LINES WITH THE BANK OF BOSTON AND ANTICIPATES A SECONDQUARTER LOSS BUT DIDN'T SPECIFY AN AMOUNT THE COMPANY SAID IT WILL DIVEST ITSELF OF ITS ADVERTISING LEASING AND CONSULTING DIVISIONS WHICH IT TERMED NONINTEGRAL AND NONPROFITABLE PARTS OF THE COMPANY'S CORE BUSINESS THE COMPANY ALSO SAID IT IS SEEKING ALTERNATIVE FINANCING SOURCES AND WILL BE MAKING APPROPRIATE FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION REFLECTING ITS CURRENT SITUATION SANBORN REPORTED NET INCOME FOR 1992 OF 12 MILLION OR 20 CENTS A SHARE ON REVENUE OF 196 MILLION FOR THE 1992 SECOND QUARTER THE COMPANY HAD NET INCOME OF 223000 OR FIVE CENTS A SHARE ON REVENUE OF 48 MILLION 9306240077 930624 LEISURE & ARTS BOOKSHELF A TANGLED HISTORY BY FOUAD AJAMI IN A SERIES OF LETTERS WRITTEN FROM CONSTANTINOPLE BETWEEN 1555 AND 1560 OGIEN GHIAELIN DE BUSBECQ IMPERIAL AMBASSADOR TO THE COURT OF SULEYMAN THE MAGNIFICENT ANGUISHED OVER EUROPE'S FATE HE WAS SURE THAT EUROPE WAS DOOMED THAT NO SOONER WERE THE TURKS DONE WITH THE PERSIANS THAN THEY WERE SURE TO FLY AT OUR THROATS SUPPORTED BY THE MIGHT OF THE WHOLE EAST EUROPE HE WORRIED WAS SQUANDERING ITS WEALTH ON SEEKING THE INDIES AND THE ANTIPODES ACROSS VAST FIELDS OF OCEAN IN SEARCH OF GOLD BUT BUSBECQ WE KNOW HAD IT WRONG THE THREAT OF ISLAM WAS TURNED BACK THE WEALTH BROUGHT FROM THE NEW WORLD HELPED TURN THE TERMS OF THE TRADE AGAINST THE MUSLIM WORLD EUROPE'S CONFIDENCE SOARED THE GREAT TURNING POINT CAME IN SEPTEMBER OF 1683 WHEN A TURKISH SIEGE OF VIENNA ENDED IN FAILURE AND DEFEAT WITH THE TURKS ON THE RUN THE TERMS OF ENGAGEMENT BETWEEN EUROPE AND ISLAM HAD BEEN TRANSFORMED BERNARD LEWIS'S BRILLIANT BOOK OF ESSAYS ISLAM AND THE WEST OXFORD UNIVERSITY PRESS 217 PAGES 25 WEAVES A SEAMLESS WEB BETWEEN PAST AND PRESENT IN A COLLECTION OF REMARKABLE LEARNING AND RANGE MR LEWIS TAKES US AS HE ALONE AMONG TODAY'S HISTORIANS AND INTERPRETERS OF ISLAM CAN FROM THE EARLY ENCOUNTERS OF CHRISTENDOM AND ISLAM TO TODAY'S ISLAMIC DILEMMAS TO READ MR LEWIS ON EUROPE'S OBSESSION WITH THE OTTOMAN TURKS THE RAGING BATTLE BETWEEN SECULARISM AND FUNDAMENTALISM IN THE MUSLIM WORLD OR THE DIFFICULTY OF STUDYING OTHER PEOPLES' HISTORIES IS TO BE TAKEN THROUGH A TREACHEROUS TERRAIN BY THE COOLEST AND MOST REASSURING OF GUIDES YOU ARE IN THE HANDS OF THE ISLAMIC WORLD'S FOREMOST LIVING HISTORIAN OF THAT WORLD'S ORDEAL HE WRITES WITH THE GREATEST CARE AND AUTHORITY AND NO SMALL MEASURE OF SYMPATHY IN MR LEWIS'S NARRATIVE THE SORROW OF MODERN MUSLIMS THEIR SENSE OF UNEASE IS SET AGAINST THE BACKGROUND OF ISLAM'S PREVIOUS SPLENDOR AND PRIMACY FOR NEARLY A THOUSAND YEARS MR LEWIS TELLS US FROM ISLAM'S CONQUEST OF THE IBERIAN PENINSULA IN THE EARLY YEARS OF THE EIGHTH CENTURY TO THE TURKISH FAILURE AT THE GATES OF VIENNA ISLAM WAS THE DREAD OF EUROPE CHRISTENDOM'S INTIMATE ENEMY THE OLD LANDS OF CHRISTIANITY IN NORTH AFRICA EGYPT SYRIA AND IRAQ HAD BEEN LOST TO ISLAM IN SICILY AND SPAIN THE CULTURE OF ISLAM WAS ASCENDANT FOR A TIME INDEED FOR A VERY LONG TIME IT SEEMED THAT NOTHING COULD PREVENT THE ULTIMATE TRIUMPH OF ISLAM AND THE EXTENSION OF THE ISLAMIC FAITH AND MUSLIM POWER TO EUROPE MR LEWIS REMINDS US CHRISTENDOM FEARED ITS OWN ABSORPTION INTO ISLAM FOR GOOD REASONS THE YOUNGER FAITH ENJOYED A VAST URBAN CULTURE AND A THRIVING ECONOMY IN ARABIC IT HAD A COMMON MEDIUM OF COMMERCE AND GOVERNMENT AND CULTURE FAR SUPERIOR TO THE OSSIFIED GREEK DEBASED LATIN AND PRIMITIVE VERNACULARS OF EUROPE EUROPE KNEW ITS OWN DISADVANTAGE MONKS WENT TO WORK LEARNING ARABIC TRANSLATING THE KORAN FOR THEIR PART THOUGH MUSLIMS TOOK LITTLE NOTICE OF THE CHRISTIAN WORLD OF EUROPE FROM THE LANDS OF ISLAM MR LEWIS WRITES EUROPE MUST HAVE LOOKED AS CENTRAL AFRICA LOOKED TO VICTORIAN ENGLAND A REALM OF BARBAROUS WILDERNESS THERE WOULD BE NO OCCIDENTALISTS AMONG THE MUSLIMS DECIPHERING THE SECRETS OF EUROPE BY THE TIME THE WORLD OF ISLAM WAS IN RETREAT IT WAS ALREADY TOO LATE VAST DOMAINS OF ISLAM WOULD BE LOST TO THE SPANISH AND PORTUGUESE IN THE MEDITERRANEAN TO THE AUSTRIANS IN THE BALKANS TO THE RUSSIANS IN THE CRIMEAN PENINSULA AND THE BLACK SEA THE HEARTLANDS OF THE MUSLIM WORLD WOULD SLIP INTO A NEW RELATIONSHIP OF DEPENDENCE VISAVIS EUROPE BUT IT HAS ALWAYS BEEN A RESENTFUL KIND OF DEPENDENCE MUSLIM RADICALISM WANTS TO BREAK WITH THIS DEPENDENCE BUT IT HAS FOUND NO EASY WAY OUT OF THE NET IT RAILS AGAINST THE WEST AT A TIME OF MASSIVE MUSLIM MIGRATION TO EUROPE AND AMERICA THE RESENTMENT IS ONLY THE OTHER SIDE OF THE DEPENDENCE THE BOOK'S MOST ENGAGING ESSAY IS A PASSIONATE DEFENSE OF ORIENTALISM THAT FORESHADOWS TODAY'S DEBATE ABOUT MULTICULTURALISM AND THE STUDY OF NONWESTERN HISTORY MR LEWIS TAKES ON THE TRENDY NEW CULT LED BY PALESTINIANAMERICAN EDWARD SAID WHOSE MANY FOLLOWERS ADVOCATE A RADICAL FORM OF ARAB NATIONALISM AND DERIDE TRADITIONAL SCHOLARSHIP OF THE ARAB WORLD AS A COVER FOR WESTERN HEGEMONY THE HISTORY OF THAT WORLD THESE CRITICS INSIST MUST BE RECLAIMED AND WRITTEN FROM WITHIN WITH MR LEWIS'S REBUTTAL THE DEBATE IS JOINED AS A GREAT HISTORIAN DEFENDS THE MEANING OF SCHOLARSHIP AND TAKES ON THOSE WHO WOULD BULLY ITS PRACTITIONERS IN PURSUIT OF SOME PARTISAN TRUTHS IT IS AN UNSENTIMENTAL VIEW OF HISTORY THAT MR LEWIS PRESENTS HE SEES CIVILIZATIONS WHOLE AND DISTINCT AND HE SEES THE GIFT OF SECULARISM THAT EUROPE IMPARTED TO THE WORLD OF ISLAM IMPERILED IN TODAY'S POLITICS LOSING OUT TO A NEW VISION THAT HAS OBLITERATED THE LINE BETWEEN POLITICS AND FAITH IN THE LIVES OF CONTEMPORARY MEN AND WOMEN HE DISCERNS THE PRESENCE OF THE ANCESTORS HEARS THEIR REPROACHES AND THEIR TALES OF PREVIOUS SPLENDOR OR HURT THAT TANGLED HISTORY ACROSS CHRISTENDOM'S FRONTIER WITH ISLAM CAN NEVER BE SHAKEN OFF HE TELLS US THERE IS WAY TOO MUCH HISTORY ACROSS THAT FRONTIER FOR THE PROTAGONISTS TO CLAIM NEW AND UNENCUMBERED BEGINNINGS MR AJAMI IS PROFESSOR OF MIDDLE EASTERN STUDIES AT THE JOHNS HOPKINS SCHOOL OF ADVANCED INTERNATIONAL STUDIES 9306240076 930624 BUSINESS BRIEF LEUCADIA NATIONAL CORP BLOCK OF INSURANCE BUSINESS IS SOLD TO JOHN HANCOCK LEUCADIA NATIONAL CORP NEW YORK SAID IT SOLD A BLOCK OF SINGLEPREMIUM WHOLE LIFE INSURANCE BUSINESS TO JOHN HANCOCK MUTUAL LIFE INSURANCE CO BOSTON TERMS WEREN'T DISCLOSED LEUCADIA SAID THAT IT EXPECTS TO REPORT A 16 MILLION PRETAX GAIN FROM THE SALE CONTINGENT ON CERTAIN CONSIDERATIONS BASED ON THE FUTURE PERFORMANCE OF THE SOLD BUSINESS THE COMPANY WOULDN'T SPECIFY WHEN IT MIGHT RECORD THE GAIN THE BLOCK OF POLICIES COVERING SOME 17000 POLICYHOLDERS AND BACKED BY APPROXIMATELY 650 MILLION IN RESERVES WERE ORIGINALLY ISSUED BY CHARTER NATIONAL LIFE INSURANCE CO A UNIT OF LEUCADIA THE TRANSACTION ALSO INCLUDES THE SALE TO HANCOCK OF ANOTHER LEUCADIA UNIT COLONIAL PENN ANNUITY & LIFE INSURANCE CO WHICH WILL CHANGE ITS NAME TO JOHN HANCOCK LIFE INSURANCE CO OF AMERICA PENDING VARIOUS INTERNAL APPROVALS LEUCADIA AN INSURANCE AND FINANCIAL SERVICES CONCERN HAD NET INCOME OF 1306 MILLION OR 535 A SHARE IN 1992 JOHN HANCOCK MUTUAL LIFE INSURANCE A FINANCIAL SERVICES AND INSURANCE CONCERN HAS ABOUT 64 BILLION IN ASSETS 9306240075 930624 LAWYERS SEEK TO RETAIN CHAPTER 11 TAX BREAK WASHINGTON BANKRUPTCY LAWYERS ARE MOBILIZING TO FIGHT A PROVISION OF THE SENATE BUDGET PACKAGE THAT THEY SAY WOULD MAKE IT MORE DIFFICULT FOR COMPANIES TO REORGANIZE UNDER CHAPTER 11 OF THE BANKRUPTCY CODE THE SENATE BUDGET PACKAGE CONTAINS A PROVISION TO REPEAL THE STOCKFORDEBT EXCEPTION THE EXCEPTION PART OF THE TAX CODE ALLOWS BANKRUPT COMPANIES TO GIVE THEIR CREDITORS STOCK IN RETURN FOR THE REDUCTION OR ELIMINATION OF DEBTS WITHOUT PAYING TAXES ON THE ECONOMIC GAIN ACHIEVED FROM THE DEBT REPUDIATION REPEALING THE PROVISION WOULD REQUIRE BANKRUPT COMPANIES TO PAY TAXES ON THE AMOUNT OF DEBT RELIEF THEY REALIZE IN SUCH A STOCK EXCHANGE MAKING THIS COMMON PRACTICE LESS ATTRACTIVE THE STOCKFORDEBT EXCEPTION IS PARAMOUNT TO THE CONTINUED EXISTENCE OF MANY CORPORATIONS REORGANIZING UNDER PROTECTION OF THE BANKRUPTCY CODE SAID ROBIN PHELAN PRESIDENTELECT OF THE AMERICAN BANKRUPTCY INSTITUTE AN EDUCATIONAL GROUP ELIMINATION OF THE TAX RELIEF COULD FORCE MORE COMPANIES TO LIQUIDATE RATHER THAN ATTEMPT TO GET BACK ON THEIR FEET HE SAID AT A NEWS CONFERENCE THE SENATE FINANCE COMMITTEE WHICH WANTS TO REPEAL THE EXCEPTION AS PART OF ITS DEFICITREDUCTION PACKAGE ESTIMATES THAT THE CHANGE WOULD BRING IN 144 BILLION OVER FIVE YEARS 9306240073 930624 WEDNESDAY'S MARKET STOCKS DROP ON TORPOR IN ECONOMY INDUSTRIALS OFF 3072 BONDS FINISH MIXED AND DOLLAR DECLINES BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL FRESH SIGNS OF A SLUGGISH ECONOMY SWEPT STOCK PRICES LOWER BOND PRICES WERE MIXED AND THE DOLLAR FELL THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 3072 POINTS TO 346681 STANDARD & POOR'S 500STOCK INDEX DROPPED 274 TO 44319 AND THE NASDAQ COMPOSITE INDEX FELL 198 TO 68479 THE FIRST BATCH OF WEAK ECONOMIC NEWS CAME BEFORE THE STOCK MARKET OPENED AS THE COMMERCE DEPARTMENT REPORTED A DROP IN DURABLEGOODS ORDERS IN MAY RATHER THAN AN EXPECTED INCREASE ALSO THE GOVERNMENT'S FINAL REVISION OF FIRSTQUARTER GROSS DOMESTIC PRODUCT SHOWED SLOWER GROWTH THAN EXPECTED IN THAT PERIOD INVESTORS WERE LATER DISCOURAGED BY RELATIVELY WEAK MIDJUNE AUTO SALES AS WELL AS THE RELEASE OF A FEDERAL RESERVE BOARD SURVEY SHOWING SLOWTOMODERATE ECONOMIC GROWTH IN MAY AND EARLY JUNE AND FORECASTING FURTHER SLOW GROWTH THE STOCK MARKET HAS BEEN OVERVALUED BASED ON THE ECONOMIC FUNDAMENTALS SAID SUNG WON SOHN CHIEF ECONOMIST AT NORWEST CORP IN MINNEAPOLIS INVESTORS WERE HOPING THAT THE ECONOMY WOULD CATCH UP TO JUSTIFY THE OPTIMISTIC LEVEL OF STOCK PRICES NOW WE MAY BE SEEING THE STOCK MARKET ADJUSTING TO THE ECONOMY WHICH MEANS LOWER PRICES MR SOHN SAID THE ECONOMY ISN'T LIKELY TO PICK UP STEAM AS LONG AS WEAKNESS OVERSEAS RESTRAINS EXPORT GROWTH AND US CONSUMERS REMAIN HESITANT ABOUT SPENDING TAX INCREASES PROPOSED BY PRESIDENT CLINTON ALSO WILL BE A DRAG ON THE ECONOMY MR SOHN PREDICTED WHEN YOU LOOK AT ALL THESE THINGS IT'S DIFFICULT TO SEE WHERE STRONG GROWTH CAN COME FROM HE SAID THE SOMBER ECONOMIC OUTLOOK FAILED TO LIFT SPIRITS OF BOND TRADERS MUCH WHILE LONGTERM PRICES ROSE MODESTLY PRICES OF SHORTERTERM SECURITIES EASED AMID CONCERNS THAT THE FED MAY NUDGE SHORTTERM RATES HIGHER THIS SUMMER TO FORESTALL ANY INFLATIONARY PRESSURES IN THE ECONOMY THE DECLINE IN DURABLE GOODS SHOULD HELP THE BOND MARKET SAID MR SOHN BUT BOND INVESTORS KNOW THE ECONOMY IS GOING TO BE WEAK AND NOW THEY'RE FOCUSING MORE ON INTEREST RATES AND MONETARY POLICY WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 049 TO 10413 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2715 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1073 ISSUES FELL AND 845 ROSE BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE ROSE LESS THAN 1/4 POINT OR LESS THAN 250 FOR EACH 1000 FACE AMOUNT TO YIELD 676 THE DOLLAR FELL IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 1692 MARKS AND 109 YEN COMPARED WITH 16965 MARKS AND 11085 YEN TUESDAY 9306240072 930624 OTC FOCUS STOCK PRICES FALL FOR 4TH STRAIGHT SESSION AS ECONOMIC DATA STIR INVESTOR CONCERNS BY CAITLIN MOLLISON SPECIAL TO THE WALL STREET JOURNAL NEW YORK CONCERN ABOUT THE STATE OF THE ECONOMY WEIGHED ON INVESTORS DEPRESSING OVERTHECOUNTER PRICES FOR A FOURTH STRAIGHT SESSION SEVERAL DISAPPOINTING ECONOMIC REPORTS CAUSED SOME ANXIETY AMONG MARKET PLAYERS EVEN AS THE SENATE WORKS TO HAMMER OUT A DEFICITREDUCTION PLAN THE NASDAQ COMPOSITE INDEX SPIRALED DOWNWARD FOR THE SIXTH CONSECUTIVE DAY FINISHING 198 POINTS OR 029 LOWER AT 68479 RETREATING STOCKS PUSHED AHEAD OF ADVANCERS 1463 TO 1240 TOTAL VOLUME INCREASED TO 260 MILLION SHARES FROM 2582 MILLION SHARES TUESDAY NELSON GOLD SENIOR VICE PRESIDENT OF OTC TRADING AT INTERSTATE JOHNSON/LANE CORP SAID THE MARKET LOOKS TIRED HE ADDED THAT YESTERDAY'S ECONOMIC DATA WERE FLAT ANEMIC AND PEOPLE ARE STARTING TO SAY WHY AM I BUYING STOCKS' BUT MR GOLD SAID THERE IS STILL A LOT OF CASH LYING AROUND THAT CONTINUES TO PROVIDE A GREAT DEAL OF BUYING POWER THE COMMERCE DEPARTMENT SAID DURABLE GOODS ORDERS LAST MONTH FELL 16 THOUGH ANALYSTS HAD LOOKED FOR AN INCREASE OF ABOUT 12 THE DEPARTMENT ALSO RELEASED ITS FINAL ESTIMATE FOR FIRSTQUARTER GROSS DOMESTIC PRODUCT WHICH IT SAID GREW JUST 07 BELOW ITS PREVIOUS ESTIMATE OF A 09 RISE ADDITIONALLY THE FEDERAL RESERVE DESCRIBED THE ECONOMIC GROWTH RATE FOR MAY AND EARLY THIS MONTH AS SLOW TO MODERATE THE FED'S REPORT ALSO SAID THE OUTLOOK IS FOR CONTINUED SLOW GROWTH MR GOLD SAID THE ECONOMIC SCENARIO EVERYONE HOPES TO SEE INCLUDES INTEREST RATES THAT STAY WHERE THEY ARE OR FALL AND AN ECONOMY THAT SHOWS JUST A MILD PICKUP IT'S THE SAME OLD STORY HE SAID IF THE ECONOMY GETS TOO STRONG PEOPLE WILL BE AFRAID OF INFLATION ANALYST OPINIONS WERE MIXED ON THE PROVO UTAH SOFTWARE CONCERN SALOMON BROTHERS DOWNGRADED ITS RATING TO HOLD FROM BUY SAYING THE STOCK HAS GIVEN A LACKLUSTER PERFORMANCE WERTHEIM SCHRODER MEANWHILE UPGRADED NOVELL TO ATTRACTIVE FROM NEUTRAL CITING THE RECENT CORRECTION IN THE STOCK PRICE AND STRONG FUNDAMENTALS IN THE COMPANY'S CORE NETWORK OPERATING SYSTEM BUSINESS THE REST OF THE TECHNOLOGY GROUP WAS MIXED SYNOPSYS ROSE 1 3/8 TO 39 5/8 APPLIED MATERIALS WAS OFF 1 1/4 AT 53 1/2 AND LOTUS DEVELOPMENT FELL 1 TO 33 ADOBE SYSTEMS JUMPED 1 7/8 TO 63 1/4 ADOBE CLOSED AT 72 1/2 ON JUNE 14 BEFORE SINKING TO 61 1/2 TUESDAY THE STOCK HAS TAKEN A ROLLERCOASTER RIDE FOLLOWING THE RELEASE OF ITS ACROBAT SOFTWARE AND LOWER SECONDQUARTER EARNINGS IN THE COMMUNICATIONS GROUP LM ERICSSON OF SWEDEN DIPPED 1 3/8 TO 42 3/8 DESPITE REPORTING POSITIVE NEWS THE COMPANY SAID IT HAS RECEIVED CONTRACTS TOTALING 26 MILLION FROM HUNGARIAN TELECOMMUNICATIONS CO AND WILL FORM A JOINT VENTURE WITH CHINA'S GUANGDONG PROVINCE TELEPHONE AUTHORITY WEAKNESS AMONG COMMUNICATIONS ISSUES IN GENERAL FORCED THE NASDAQ UTILITY INDEX DOWN 1081 POINTS FLEET CALL SAGGED 3/4 TO 27 1/8 TELECOMMUNICATIONS SHRANK 3/4 TO 21 3/4 AND PARK COMMUNICATIONS FELL 1/2 TO 18 A NEW ISSUE PITTENCRIEFF COMMUNICATIONS CLOSED AT 15 3/4 ABOVE ITS DEBUT PRICE OF 14 YESTERDAY THE ABILENE TEXAS WIRELESS COMMUNICATIONS SERVICES CONCERN WAS THE SEVENTH MOSTACTIVE STOCK CASINO STOCKS GAINED ON NEWS THAT INDIANA'S STATE SENATE PASSED A BUDGET AMENDMENT THAT WOULD ALLOW AS MANY AS 11 GAMBLING BOATS ON LAKE MICHIGAN THE OHIO RIVER AND LAKE PATOKA THE STATE'S HOUSE ALREADY PASSED A BUDGET THAT INCLUDES RIVERBOAT GAMBLING THE NEXT STEP COULD BE A CONFERENCE COMMITTEE BETWEEN THE SENATE AND HOUSE ON THE ISSUE GRAND CASINOS SHOT UP 4 1/8 TO 33 3/4 AFTER LOSING 3 5/8 TUESDAY PRESIDENT RIVERBOAT SOARED 4 1/4 TO 34 AFTER PLUMMETING 12 5/8 FRIDAY CASINO AMERICA ROCKETED 2 3/4 TO 23 1/2 CASINO MAGIC MOVED UP 1 1/2 TO 25 1/2 AND ARGOSY GAMING LEAPED 3 5/8 TO 31 1/2 SEVERAL RESTAURANT STOCKS FARED POORLY TACO CABANA SLID 1 3/4 TO 22 1/2 THE SAN ANTONIO OWNER AND OPERATOR OF MEXICAN RESTAURANTS SAID IT INTENDS TO FILE A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PUBLIC OFFERING OF 25 MILLION CLASS A COMMON SHARES AU BON PAIN SANK 2 TO 23 3/8 AND CHECKERS DRIVEIN RESTAURANTS EASED 1 1/2 TO 18 COSTAR JUMPED 5 7/8 TO 23 5/8 THE CAMBRIDGE MASS LABORATORY PRODUCTS CONCERN HAS SIGNED A LETTER OF INTENT IN WHICH IT WILL BE PURCHASED BY CORNING INC FOR 180 MILLION CORNING FELL 1/4 TO 34 3/8 ON THE NEW YORK STOCK EXCHANGE 9306240071 930624 REVIEW & OUTLOOK EDITORIAL VINCENT FOSTER'S VICTORY MEET VINCENT FOSTER MOVEMENT CONSERVATIVE VINCENT FOSTER IS ONE OF THE WHITE HOUSE LAWYERS FROM THE ROSE LAW FIRM WHOSE PICTURE WE'VE BEEN SEEKING THROUGH THE ALLEYS AND BYWAYS OF THE FREEDOM OF INFORMATION ACT THE PICTURE ARRIVED IN TIME THIS WEEK FOR US TO CELEBRATE MR FOSTER'S VICTORY YESTERDAY IN THE BATTLE OVER HILLARY CLINTON'S STATUS AS HEAD OF THE CLINTONS' HEALTH CARE TASK FORCE AN APPEALS COURT RULED TUESDAY THAT AS MR FOSTER HAD BEEN ARGUING MRS CLINTON IS INDEED THE FUNCTIONAL EQUIVALENT OF A FEDERAL EMPLOYEE AT LEAST AS CONCERNS COMPLIANCE WITH THE FEDERAL ADVISORY COMMITTEE ACT OR FACA AS IN FOCKA THE FACA FIGHT INITIATED BY VARIOUS HEALTH AND DOCTORS' GROUPS WAS OVER WHETHER THE HILLARY CLINTON HEALTH TASK FORCE HAD TO HOLD ITS MEETINGS IN PUBLIC WHICH IS WHAT FACA REQUIRES WHEN PRIVATE CITIZENS ARE SERVING ON A PRESIDENT'S ADVISORY COMMITTEES OR WHETHER HILLARY THE FUNCTIONAL FEDERAL EQUIVALENT COULD HOLD HER MEETINGS IN SECRET AS SHE DESIRED THE APPEALS COURT SAID SURE GO AHEAD AND MEET IN SECRET IF YOU WANT THAT'S A WIN FOR THE WHITE HOUSE HOWEVER THE COURT ALSO SAID IT DIDN'T HAVE A CLUE AS TO WHAT EXACTLY THE TASK FORCE'S SOCALLED WORKING GROUPS WERE ALL ABOUT OR WHETHER FACA APPLIED TO THEIR MEMBERS THE WHITE HOUSE SAID THOSE ARE ALL FEDERAL EMPLOYEES TOO SO THEY CAN HOLD SECRET MEETINGS BUT THE APPEALS COURT SAID THE LEGAL STATUS OF THESE PEOPLE ISN'T AT ALL CLEAR AND ORDERED THE DISTRICT COURT TO REVISIT THE FACA NETHERWORLD TO EXPLORE SUCH ISSUES AS WHETHER SOME OF HILLARY'S HELPERS ARE SPECIAL GOVERNMENT EMPLOYEES OR FULL TIME OR INTERMITTENT OR CONSULTANTS FINALLY THE COURT SAID THE PLAINTIFF DOCTORS GROUPS GET TO LOOK AT THE ALMOST FOOTBALLFIELD'S WORTH OF PAPER AND DOCUMENTATION THAT THE WORKING GROUPS HAVE PILED UP BY NOW AS WE SAY FOR ACHIEVING THESE OUTCOMES WE THINK MR FOSTER DESERVES A SALUTE FROM CONSERVATIVES WITH ONE MIGHTY SWEEP HE HAS STRUCK A BLOW FOR SEPARATION OF POWERS EXECUTIVE AUTHORITY CRITICS OF THE LITIGATION EXPLOSION AND WE DARE SAY EVEN FOR THE FORMULATORS OF THE REAGAN WHITE HOUSE'S OFFTHEBOOKS IRANCONTRA OPERATION CONSERVATIVES HAVE WORRIED OUT LOUD FOR YEARS ABOUT INROADS AGAINST THE PRESIDENT'S ABILITY TO CARRY OUT THE FUNCTIONS OF HIS OFFICE IN PARTICULAR CONSERVATIVES HAVE NOTED CONGRESS'S INSTINCT TO USURP PRESIDENTIAL AUTHORITY TIPPING THE BALANCE OF POWERS IN THE LEGISLATURE'S FAVOR THUS PARTICULAR OR PAROCHIAL INTERESTS SUBSUME ANY NATIONAL INTEREST THAT A PRESIDENT IS ELECTED TO REPRESENT JUDGE LAURENCE SILBERMAN WRITING FOR THE APPEALS COURT AND ALLUDING TO ALEXANDER HAMILTON ALONG THE WAY NOTED THE ABILITY TO DISCUSS MATTERS CONFIDENTIALLY IS SURELY AN IMPORTANT CONDITION TO THE EXERCISE OF EXECUTIVE POWER WITHOUT IT THE PRESIDENT'S PERFORMANCE OF ANY OF HIS DUTIES WOULD BE MADE MORE DIFFICULT IN DESIGNING THE CONSTITUTION THE FRAMERS VESTED THE EXECUTIVE POWER IN ONE MAN FOR THE VERY REASON THAT HE MIGHT MAINTAIN SECRECY IN EXECUTIVE OPERATIONS ALAS THE CLINTONITES AS IS THEIR WONT AGAIN ALLOWED HUBRIS TO SMOTHER MERE PRINCIPLE INSTEAD OF A MORE WELLDEFINED OPERATION THEY WENT SECRET OVER CHANGING THE ENTIRE AMERICAN HEALTH CARE SYSTEM EVEN DEFENDERS OF EXECUTIVE AUTHORITY WOULD BLANCH AT SUCH IMPERIAL OVERSTRETCH AND SO NOW THE CLINTONS WILL DISCOVER THE PLEASURES OF THE LITIGATION EXPLOSION AS DEFINED BY FORMER VICE PRESIDENT DAN QUAYLE INSTEAD OF DOING PRODUCTIVE WORK THEY WILL SPEND DAYS BRINGING FORTH BOX AFTER BOX OF DOCUMENTATION WHILE ARGUING WITH A JUDGE ABOUT INTERMITTENT VS FULLTIME JUST THE WAY PRIVATE COMPANIES DO FOR THE FEDERAL PROSECUTORS AND AGENCY BUREAUCRATS WHO ENFORCE THE KINDS OF VAGUE LAWS THAT THE CLINTONS' POLITICAL PHILOSOPHY FAVORS DAN QUAYLE HAS FURTHER DETAILS AS FOR IRANCONTRA WE SUSPECT THAT VINCENT FOSTER AND OLLIE NORTH MIGHT HIT IT OFF AFTER ALL WE'RE SUPPOSED TO BELIEVE THAT THE HEALTH TASK FORCE OFFICIALLY DISBANDED ON MAY 30 AND SO FACA'S REQUIREMENTS ARE MOOT THAT IS WE'RE SUPPOSED TO BELIEVE THAT MRS CLINTON AND HER ASSOCIATES WILL NEVER EVER HOLD OFFTHEBOOKS MEETINGS WITH NONGOVERNMENT ADVISERS TO GET THE REFORM PLAN FINISHED MR FOSTER'S BOSS BILL CLINTON OFTEN RAILS AGAINST THE GRIDLOCK OF THE LAST 12 YEARS FOR THAT REASON WE'RE GLAD THAT THE CASE OF ASSOCIATION OF AMERICAN PHYSICIANS AND SURGEONS V HILLARY RODHAM CLINTON ET AL HAS GIVEN A DEMOCRATIC ADMINISTRATION THE OPPORTUNITY TO EXPLORE THE QUESTIONS OF PRESIDENTIAL AUTHORITY DISCUSSED BY JUDGE SILBERMAN AND HIS COLLEAGES IN THEIR DECISION FOR THE WHITE HOUSE 9306240070 930624 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN JAPAN ON DEC 1 WILL ISSUE NEW PAPER MONEY DESIGNED TO FOIL COUNTERFEITING THOUGH THE NEW BANKNOTES WILL APPEAR SIMILAR TO THOSE ALREADY IN CIRCULATION THEY WILL BEAR THE WORDS NIPPON GINKO OR BANK OF JAPAN IN 1/100THINCHHIGH LETTERS THAT PHOTOCOPIERS CAN'T REPRODUCE THE MINISTRY OF FINANCE WILL ISSUE THE NEW NOTES DENOMINATED IN 1000 5000 AND 10000 YEN THE BILLS WILL REPLACE THE CURRENT MONEY IN A COUPLE OF YEARS COUNTERFEIT 10000YEN BILLS WERE FOUND IN MARCH AND APRIL AT AUTOMATED MONEYEXCHANGE MACHINES IN COMMERCIAL BANKS AND RAILWAY STATIONS IN THE OSAKA AREA CHINA'S OFFICIAL XINHUA NEWS AGENCY BEGAN PUBLISHING THE COUNTRY'S FIRST COMPREHENSIVE NATIONWIDE STOCK INDEX ON A TRIAL BASIS THE XINHUA STOCK PRICE INDEX IS BASED ON 30 OF THE CLASS A SHARES AVAILABLE TO CHINESE INVESTORS AND ALL 23 OF THE CLASS B STOCKS DESIGNATED FOR OVERSEAS PURCHASERS CHINA'S FLEDGLING STOCK MARKETS LIST A TOTAL OF 92 CLASS A ISSUES 31 IN SHANGHAI AND 61 IN SHENZHEN LAST WEEK 120 MILLION SHARES VALUED AT 191 BILLION YUAN 334 MILLION WERE TRADED IN SHANGHAI AND 639 MILLION SHARES VALUED AT 794 MILLION YUAN CHANGED HANDS IN SHENZHEN RUSSIAN PRESIDENT BORIS YELTSIN ORDERED CREATION OF AN INSURANCE COMPANY TO PROTECT FOREIGN INVESTORS AGAINST RISKS OF POLITICAL CHANGE THE GOVERNMENT EARMARKED 100 MILLION TO SET UP THE INSURER YURI PETROV STATE INVESTMENT CORP CHAIRMAN SAID THE CAPITAL WILL EVENTUALLY TOTAL 1 BILLION AND BE REGISTERED ABROAD TO ALLAY SAFETY FEARS POLITICAL SWINGS ON MARKET REFORMS HAVE ALREADY SCARED OFF MANY POTENTIAL INVESTORS IN ATTRACTING OVERSEAS INVESTMENT CAPITAL RUSSIA LAGS BEHIND MUCH SMALLER COUNTRIES LIKEWISE MOVING AWAY FROM COMMAND ECONOMIES MEXICO'S NEW ANTIMONOPOLY COMMISSION BEGAN OPERATING WITH COMMERCE UNDERSECRETARY SANTIAGO LEVY AS ITS PRESIDENT THE AGENCY WILL POLICE BUSINESSES THAT TRY TO CORNER MARKETS THROUGH TRADE AND MARKETING PRACTICES IT MUST ISSUE RULINGS WITHIN 30 DAYS OF RECEIVING COMPLAINTS AND VIOLATORS MAY BE FINED AS MUCH AS 10 OF TOTAL ASSETS OR ANNUAL SALES THE NEW ANTIMONOPOLY LAW REPLACING A LARGELY UNENFORCED 1934 STATUTE DEFINES MONOPOLIES BY MARKET PRACTICE SUCH AS USING CLOUT TO THWART COMPETITION RATHER THAN A TRADITIONAL YARDSTICK OF MARKET SHARE FOUR MORE COMMISSIONERS ARE TO BE APPOINTED WITH STAGGERED TERMS OVERLAPPING THE MEXICAN PRESIDENTIAL TERM TO INSULATE THEM FROM POLITICAL PRESSURE FRENCH INDUSTRIAL ACTIVITY SLOWLY IMPROVED IN THE PAST THREE MONTHS BUT REMAINS DEPRESSED THE NATIONAL STATISTICS INSTITUTE SAID IN ITS JUNE SURVEY OF BUSINESS LEADERS NEW ORDERS CONTINUED TO BE SPARSE AND INVENTORIES STAYED HEAVY SIGNALING A DETERIORATION IN PRODUCTION IN COMING MONTHS CONSUMERGOODS OUTPUT SLUMPED AND PRICES ARE EXPECTED TO FALL THE AGENCY ALSO SAID FRENCH HOUSEHOLD CONSUMPTION IN MAY PLUNGED 51 FROM APRIL UNDERSCORING CONSUMER ANXIETY AMID HIGH UNEMPLOYMENT DURABLEGOODS PURCHASES SANK 75 TO JANUARY LEVELS CHINA'S ECONOMY IN THE FIRST QUARTER GREW AN EXPLOSIVE 15 FROM A YEAR EARLIER AND COULD EXPAND IN THE FIRST HALF AT AN ANNUAL RATE OF 13 TO 14 FAR FASTER THAN BEIJING'S GOAL OF 8 TO 9 THE GOVERNMENT SAID THE HIGHSPEED PACE FOR THE GROSS NATIONAL PRODUCT HAS LED TO STEADY IMPROVEMENT IN LIVING STANDARDS BUT ACKNOWLEDGED IT HAS CAUSED HIGH INFLATION AND SUPPLY BOTTLENECKS THE PEOPLE'S DAILY THE COMMUNIST PARTY NEWSPAPER DIDN'T SPECIFY FIRSTQUARTER GNP FIGURES BUT THE GOVERNMENT PREVIOUSLY ESTIMATED THE SLIGHTLY LESS COMPREHENSIVE GROSS DOMESTIC PRODUCT EXPANDED 14 TO 5278 BILLION YUAN 9229 BILLION SOME BRITISH MOTORISTS COMPLAINED THAT AFTER THEY CROSSED THE ENGLISH CHANNEL BY FERRY TO FRANCE POLICE ILLEGALLY CONFISCATED THEIR CELLULAR TELEPHONES THE REASON AUTHORITIES GAVE ACCORDING TO THE TELECOMMUNICATIONS USERS ASSOCIATION A BRITISH TRADE GROUP OF BIG BUSINESSES BRITISH CAR PHONES MIGHT INTERFERE WITH FRENCH MILITARY RADIO TRAFFIC ONE TUA MEMBER WHO WAS PULLED OVER BY POLICE AND GOT INTO AN ARGUMENT SAID THE OFFICERS SEIZED HIS CELLULARPHONE SET AND RETURNED IT DISMANTLED THE ORGANIZATION FILED A PROTEST WITH THE EUROPEAN COMMUNITY SAYING THE FRENCH INCIDENTS VIOLATED EC FREETRADE RULES THE FRENCH INDUSTRY MINISTRY SAID THE INCIDENTS COULD BE ISOLATED TIFFS BETWEEN DRIVERS AND POLICE FRENCH POLICE WHO ARE EMPOWERED TO ENFORCE CUSTOMS REGULATIONS MAY HAVE BELIEVED THE PHONES WERE UNAUTHORIZED IMPORTS FROM OUTSIDE THE EC THE AGENCY SAID NOTING THAT IN ANY CASE IT ISN'T AGAINST THE LAW TO ENTER FRANCE WITH NONFRENCH CAR PHONES ECONOMICS TEACHERS PREPARING TO PURSUE MBA DEGREES AT THE NATIONAL ECONOMICS UNIVERSITY IN HANOI ARE PLAYING THE US BOARD GAME MONOPOLY TO LEARN PRINCIPLES OF MARKET ECONOMICS ESPOUSED BY VIETNAM'S COMMUNIST GOVERNMENT ROMANIA'S PARLIAMENT REJECTED AN OPPOSITION PROPOSAL TO ALLOW FOREIGN INVESTORS TO OWN LAND IF THEY REGISTERED THEIR COMPANIES IN THE COUNTRY THE LAW FORBIDS EVEN ROMANIAN COMPANIES FROM OWNING REAL ESTATE IF THEY ARE PARTLY FOREIGNOWNED 9306240069 930624 MARKETING & MEDIA TV NETWORK STOCKS PLUNGE OVER FEARS FOR 'UPFRONT' SALES BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE MAJOR TELEVISION NETWORKS HAVE YET TO SELL MOST OF THEIR ADVERTISING INVENTORY FOR THE FALL SEASON SPURRING CONCERN ON WALL STREET THAT EARNINGS OF THE BROADCASTERS MAY BE HURT THE NETWORKS DECLINED TO COMMENT ON THE DROP WHICH WAS PARTLY TRIGGERED AT MIDDAY BY ALEX BROWN & SONS LOWERING ITS RATING ON CAPITAL CITIES/ABC TO NEUTRAL FROM BUY CITING A WEAKNESS IN THE SCATTER MARKET FOR LEFTOVER AD TIME AND EARLY INDICATIONS THE UPFRONT MARKET FOR NEXT YEAR MAY BE DISAPPOINTING IN HIS REPORT YESTERDAY ALEX BROWN ANALYST DREW MARCUS LOWERED HIS FULLYEAR 1993 EARNINGS ESTIMATES FOR CAP CITIES TO 28 A SHARE FROM 2950 A SHARE HE ALSO LOWERED 1994 FULLYEAR EARNINGS ESTIMATE TO 32 COMPARED WITH 3460 CAP CITIES LAST YEAR REPORTED FULLYEAR OPERATING EARNINGS OF 2345 A SHARE ON THE OTHER HAND MR MARCUS UPGRADED HIS EARNINGS ESTIMATES FOR CBS YESTERDAY MOSTLY BECAUSE THE COMPANY HAS BEEN TAKING BIGGER GAINS IN ITS INVESTMENT PORTFOLIO HE DIDN'T CHANGE THE COMPANY'S NEUTRAL RATING HE SAID HE NOW PROJECTS 1993 EARNINGS OF 16 A SHARE UP FROM 1450 AND 1994 ESTIMATES OF 1820 A SHARE UP FROM 1740 CBS'S STOCK DROP YESTERDAY THEREFORE MAY HAVE BEEN MORE A REACTION TO CAP CITIES' DECLINE THE UPFRONT SEASON IS WHEN THE TV INDUSTRY TRADITIONALLY SELLS BLOCKS OF AD TIME FOR THE FOLLOWING TV SEASON TO ITS LARGEST CLIENTS ACCORDING TO A RECENT REPORT BY PAINEWEBBER INC INDUSTRY STATISTICS SHOW THAT ABOUT 55 OF THE PRIMETIME SCHEDULE CONSISTS OF SHOWS NEW TO THEIR TIME PERIODS INCREASING UNCERTAINTY OVER SHOWS' ABILITIES TO FIND AUDIENCES AND CASTING DOUBT WHETHER THE INDUSTRY WILL BE ABLE TO IMPROVE SALES OVER LAST YEAR'S 36 BILLION IN UPFRONT ADS THE SLUGGISH MARKET ALSO APPEARS TO REFLECT ADVERTISERS' UNCERTAINTY ABOUT THE ECONOMY ALTHOUGH A COUPLE OF MAJOR AD AGENCIES HAVE CONCLUDED UPFRONT DEALS FOR NEXT YEAR'S PRIMETIME ADS AT VERY SLIGHT INCREASES ESTIMATED AT NOT MORE THAN 3 MOST ADVERTISERS ARE HOLDING BACK THE MARKETPLACE HASN'T FORMED YET IT'S LIKE JELLO THAT'S SITTING ON THE COUNTER SAID JON MANDEL SENIOR VICE PRESIDENT AT GREY ADVERTISING CLIENTS ARE SPENDING MONEY CLOSER TO AIR DATE STILL SAID PAINEWEBBER ANALYST ALAN GOTTESMAN BECAUSE THE UPFRONT SALES HAVEN'T OCCURRED YET AND THERE'S NO INFORMATION PEOPLE ASSUME THE WORST WHEN THERE'S NOTHING ELSE TO DO AND THAT'S WHAT'S HAPPENING FURMAN SELZ ANALYST JOHN TINKER SAID YESTERDAY'S DROP MAY REFLECT CONCERNS ABOUT THE ECONOMYRANGING FROM WHETHER INTEREST RATES ARE HEADED UP TO SLOW RETAIL SALES BUT MR GOTTESMAN SAID HE ESTIMATES THE NETWORK MARKETPLACE WILL FINISH STRONGER THAN THE 2 TO 3 UPTICK THAT MANY ARE CURRENTLY PROJECTING BASED ON THE DEALS ALREADY DONE INDEED THE RECENTLY CONCLUDED MARKETPLACE FOR DAYTIME ADS WAS FAIRLY STRONG FOR THE NETWORKS BOTH THE NETWORKS AND ADVERTISERS AGREE WITH WHAT ONE ADVERTISING EXECUTIVE CHARACTERIZED AS A SLIGHT REVENUE INCREASE FOR THE NETWORKS IF THE PRIMETIME MARKETPLACE DOESN'T PICK UP SOON THE NETWORKS HAVE ONLY THEMSELVES TO BLAME SAID PAUL SCHULMAN HEAD OF AN ADBUYING AGENCY THAT BEARS HIS OWN NAME THERE ARE 38 NEW SHOWS ON THE FALL SCHEDULE AND ONLY 26 OR 27 PILOTS AVAILABLE I LIKE TO KNOW WHAT I'M GETTING HE SAID 9306240068 930624 SALE FOR 24 MILLION OF POLLACK PAINTING IS CLEARED TO PROCEED NEW YORK THE 24 MILLION SALE OF ONE OF JACKSON POLLOCK'S FAMOUS DRIP PAINTINGS WILL PROCEED NOW THAT A MANHATTAN JUDGE HAS DISMISSED A CLAIM TO THE WORK BY THE DAUGHTER OF THE PREVIOUS OWNER THE POLLOCK NUMBER 19 1948 HAD BEEN UNDER A LEGAL CLOUD EVER SINCE IT WAS THE STAR OF THE MAY 5 CONTEMPORARY ART AUCTION IN NEW YORK AT CHRISTIE'S INTERNATIONAL PLC IN AN UNPRECEDENTED ARRANGEMENT CHRISTIE'S WENT AHEAD WITH THE SALE OF THE PAINTING EVEN THOUGH ITS OWNERSHIP WAS BEING CHALLENGED IN NEW YORK SURROGATE'S COURT IN MANHATTAN BUT THE GAMBLE APPEARS TO HAVE PAID OFF SURROGATE JUDGE EVE PREMINGER DISMISSED CLAIMS BY JANET HAUCK WARD THAT SHE SHOULD CONTROL THE FATE OF THE PAINTING WHICH WAS IN THE ESTATE OF HER MOTHER JANET HAUCK THE EXECUTORS OF THE ESTATE SAID THEY NEEDED TO SELL THE PAINTING TO PAY OFF INHERITANCE TAXES AND OTHER EXPENSES SUCH AS LEGAL FEES A SPOKESWOMAN FOR CHRISTIE'S SAID THE SALE WILL NOW PROCEED AND THE NEW OWNER WHOSE NAME HASN'T BEEN MADE PUBLIC WILL GET THE PAINTING AS SOON AS PAYMENT IS MADE DEAN LYNCH AN ATTORNEY FOR MS WARD SAID HE EXPECTS TO APPEAL JUDGE PREMINGER'S RULING 9306240067 930624 INTERNATIONAL BRIEF GALERIES LAFAYETTE SA FRENCH RETAILING CONCERN EXPECTS TO POST 1993 PROFIT FRENCH DEPARTMENT STORE OPERATOR GALERIES LAFAYETTE SA SAID THE GROUP WOULD LIKELY POST A PROFIT IN 1993 BUT DECLINED TO MAKE ANY SPECIFIC PROJECTIONS I WILL NOT MAKE ANY FORECASTS SAID CHAIRMAN GEORGES MEYER AT A NEWS CONFERENCE WHILE NOTING THAT THE CURRENT BUSINESS CLIMATE IS DIFFICULT AS REPORTED GALERIES LAFAYETTE GROUP NET PROFIT TUMBLED 77 IN 1992 TO 69 MILLION FRANCS 121 MILLION THE SHARP DROP IN PROFIT CAME DESPITE A 23 INCREASE IN CONSOLIDATED REVENUE TO 3146 BILLION FRANCS 551 BILLION MR MEYER ACKNOWLEDGED THAT GALERIES LAFAYETTE DEPARTMENT STORE IN NEW YORK REMAINS A BLEAK SPOT FOR THE GROUP AND CONCEDED THAT THE STORE WILL LIKELY POST ANOTHER LOSS THIS YEAR AFTER SEEING A LOSS OF 97 MILLION FRANCS IN 1992 BUT HE SAID THE COMPANY WAS CERTAIN TO REALIZE HIGH CAPITAL GAINS ON THE SALE OF KEY ASSETS INCLUDING A SHOPPING CENTER IN NICE AND THE FORMER HEADQUARTERS OF NOUVELLES GALERIES REUNIES SA A RETAILING UNIT PURCHASED LAST YEAR 9306240066 930624 FINANCING BUSINESS SWIFT ENERGY CO SWIFT ENERGY CO SAID IN HOUSTON THAT IT COMPLETED A 25 MILLION OFFERING OF 65 CONVERTIBLE SUBORDINATED DEBENTURES DUE IN 2003 THE OIL AND NATURAL GAS EXPLORATION AND PRODUCTION COMPANY SAID PROCEEDS WILL BE USED TO ACQUIRE OIL AND GAS PROPERTIES TO FINANCE EXPANDING EXPLORATION AND DEVELOPMENT PROGRAMS AND FOR GENERAL CORPORATE PURPOSES 9306240064 930624 PENTAGON MAY HELP GENERAL DYNAMICS LINES DEFENSE OFFICIAL WEIGHS ALTERNATIVES TO KEEP TANK SUB PLANTS OPEN BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL DYNAMICS CORP MAY GET A REPRIEVE FROM THE PENTAGON FOR ITS TANK AND SUBMARINE BUSINESSES THE DEFENSE CONTRACTOR IS THE LAST US MAKER OF TANKS AND ONE OF TWO NUCLEARSUBMARINE PRODUCERS DURING THE BUSH ADMINISTRATION THE DEFENSE DEPARTMENT HAD FAVORED MOTHBALLING THE GENERAL DYNAMICS TANK AND SUBMARINE PLANTS WHEN DOMESTIC AND FOREIGN CONTRACTS WITHER DURING THE NEXT FEW YEARS BUT DEPUTY DEFENSE SECRETARY WILLIAM PERRY SAID HE IS WEIGHING ALTERNATIVES THAT INCLUDE GIVING MAKERS OF SUBMARINES AND TANKS SUBSTANTIAL MAINTENANCE WORK THAT IS NOW PERFORMED BY THE MILITARY OR BUYING MORE WEAPONS TO KEEP THE PLANTS OPERATING MR PERRY THE PENTAGON'S NO 2 OFFICIAL SAID IN AN INTERVIEW THAT HE OPPOSES THE PREVIOUS ADMINISTRATION'S STAND BECAUSE IT WON'T ADEQUATELY PRESERVE CAPACITY TO DEVELOP NEW EQUIPMENT AFTER THE TURN OF THE CENTURY EITHER ONE OF THOSE IS EXTREMELY DIFFICULT POLITICALLY BUT THOSE ARE THE KINDS OF THINGS WE'RE LOOKING AT SAID MR PERRY WHO IS OVERSEEING A COMPLETE BOTTOM UP REVIEW OF DEFENSE NEEDS THAT IS DUE TO BE COMPLETED IN THE NEXT THREE WEEKS THE OUTCOME OF THAT REVIEW STILL WILL HAVE TO PASS MUSTER WITH DEFENSE SECRETARY LES ASPIN AND CONGRESS GENERAL DYNAMICS OFFICIALS DECLINED TO COMMENT ON MR PERRY'S STATEMENTS BUT FOR THE COMPANY WHICH HAS ALREADY SOLD ITS MOST MARKETABLE BUSINESSES THE PENTAGON ACTIONS HE DISCUSSED COULD RESCUE ITS TWO LARGEST REMAINING BUSINESSES FROM WHAT COULD OTHERWISE BE AN EARLY PHASEOUT IN THE PAST TWO YEARS IN MOVES THAT AT TIMES RESEMBLED A LIQUIDATION THE FALLS CHURCH VA COMPANY SOLD ITS F16 FIGHTER AND ITS CESSNA GENERALAVIATION AIRCRAFT BUSINESSES AND ITS MISSILE LINES ALONG WITH OTHER DEFENSE AND COMMERCIAL OPERATIONS ITS ARMOREDVEHICLE BUSINESS WHICH CHURNS OUT M1A2 ABRAMS TANKS IN OHIO AND MICHIGAN HAS BEEN PROPPED UP WITH FOREIGN SALES AS ITS DELIVERIES TO THE US ARMY SLOW SHARPLY ITS 18600WORKER ELECTRIC BOAT CO BASED IN GROTON CONN IS BUILDING THE LAST OF TWO SEAWOLF NUCLEAR SUBMARINES NOW ON ORDER AND THE COMPANY HAS PROJECTED THAT WITHOUT FURTHER ORDERS EMPLOYMENT THERE COULD NOSEDIVE TO FEWER THAN 8000 BY 1997 TOP COMPANY MANAGERS SAY THEY HAVE CONTINUED TO WRING IMPROVING PROFITS FROM THE TANK AND SUBMARINE LINES BUT THEY HAVE BEEN FRANK AT TIMES ABOUT THE NEED TO WIN MAINTENANCE CONTRACTS AWAY FROM THE MILITARY SERVICES THE COMPANY'S OTHER LARGEST OPERATIONS INCLUDE ATLASCENTAUR ROCKETS WHICH HAVE BEEN HAMPERED BY A SERIES OF RECENT SPACELAUNCH FAILURES AND A BUILDING MATERIALS BUSINESS THAT STILL IS CONSIDERED SALABLE INDUSTRY LEADERS HAVE PRESSED THE US TO HAND OVER MORE MAINTENANCE WORK TO HELP PRESERVE A DEFENSEINDUSTRIAL BASE NOW SHRINKING FAST WHILE NAVY OFFICIALS APPEAR AGREEABLE IN CERTAIN CASES SOME TOP AIR FORCE OFFICIALS INCREASINGLY HAVE WANTED TO COMPETE WITH PRIVATE INDUSTRY FOR THE WORK PLACING FURTHER ORDERS FOR TANKS OR FOR A THIRD GENERAL DYNAMICSPRODUCED SUBMARINE AS A WAY OF KEEPING PLANTS RUNNINGWOULD MEET WITH HEAVY RESISTANCE FROM SOME IN CONGRESS MR PERRY SAID HIS DECISION TO SEEK ALTERNATIVES TO PLANT CLOSURE HAS REALLY STIRRED UP A HORNET'S NEST BUT THE PROBLEM IS A HORNET'S NEST WHETHER YOU STICK IT OR DON'T STICK IT THE MILITARY SERVICES SAY THEY DON'T WANT MORE TANKS OR SUBMARINES SAID MR PERRY BUT EVERYBODY UNDERSTANDS THAT COMING INTO THE NEXT CENTURY WE'RE GOING TO NEED A NEW GENERATION OF TANKS AND SUBS SO THE PROBLEM IS HOW IN THE WORLD DO YOU SQUARE THOSE TWO FACTORS THE BUSH ADMINISTRATION HAD WANTED TO SHUT THE PLANTS DOWN THEN REOPEN THEM WHEN NEW EQUIPMENT IS NEEDED AROUND THE YEAR 2000 HE SAID I HAVE TENDED TO REJECT THAT AS A VIABLE ALTERNATIVE HE SAID BECAUSE IT IGNORES THE QUESTION OF WHAT HAPPENS TO THE INTELLECTUAL CAPITAL AFTER COMPANY EXPERTISE IS DISPERSED USING GENERAL DYNAMICS'S SUBMARINE BUSINESS AS AN EXAMPLE HE SAID ONE GENERIC ALTERNATIVE WOULD BE TO GIVE ALL MAINTENANCE WORK TO THE COMPANY THAT YOU WANT TO KEEP ON STANDBY TO BUILD THE NEXT GENERATION OF SUBS HE SAID ANOTHER ALTERNATIVE IS BUILDING THEM EVEN THOUGH THE NAVY IS SAYING I DON'T NEED A NEW SUB THIS YEAR ONE POTENTIAL HITCH FOR GENERAL DYNAMICS IS THE POSITION OF OFFICIALS OF RIVAL TENNECO INC WHICH MAKES SUBMARINES AT ITS 24000WORKER NEWPORT NEWS VA UNIT TENNECO HAS SUGGESTED TO MR PERRY THAT THE INDUSTRIAL BASE FOR SUBMARINES CAN BE PRESERVED SIMPLY BY PRESERVING SHIPMAKING CAPACITY THOMAS E RICKS CONTRIBUTED TO THIS ARTICLE 9306240063 930624 FOREIGN EXCHANGE DOLLAR ENDS MOSTLY OFF AFTER RALLYING FOR A WEEK DURABLEGOODS DATA HURT BY XANDER MELLISH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MOSTLY LOWER WEDNESDAY DRAGGED BY POOR US ECONOMIC DATA AND PROFITTAKING FROM A WEEKLONG RALLY LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16920 MARKS OFF FROM 16965 MARKS LATE TUESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 109 YEN DOWN FROM 11085 YEN STERLING WAS TRADING AT 14715 WEAKENING FROM 14770 ABOUT MIDDAY ON THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10890 YEN AND AT 16913 MARKS THE DOLLAR TOOK ITS BIGGEST BLOW AFTER THE RELEASE OF DATA SHOWING US DURABLEGOODS ORDERS FELL A SURPRISINGLY BEARISH 16 IN MAY MARKET EXPECTATIONS HAD BEEN FOR SUCH ORDERS TO RISE 01 FOLLOWING RELEASE OF THE DURABLEGOODS DATA EVERYBODY HOPPED ON THE SELLDOLLAR BANDWAGON SAID SHELDON MATLOW A VICE PRESIDENT AT STANDARD CHARTERED BANK IN NEW YORK AFTER A BRIEF RECOVERY THE US CURRENCY DRIFTED LOWER FOR THE REST OF THE DAY BUT TRADERS SAID THE MARKET HAD USED THE DATA MOSTLY AS AN EXCUSE FOR PROFITTAKING AND THEY WERE RELUCTANT TO PRONOUNCE THAT THE DOLLAR'S RECENT RALLY WAS OVER THE DOLLAR'S GAINS THEY SAID HAVE BEEN LESS A PRODUCT OF STRENGTH IN THE US THAN OF PROBLEMS ELSEWHERE THAT'S BEEN THE STRENGTH OF THE DOLLARTHAT IT HAS BEEN ABLE TO REMAIN FIRM DESPITE THE PROBLEMS IN THE US ECONOMY SAID SIMON FISCHER A TRADER AT SWISS BANK THE FOCUS OF ATTENTION HAS BEEN ON EUROPE TRADERS SAID THAT ECONOMIC PROBLEMS IN GERMANY WERE WEIGHING ON THE MARK WHICH WOULD SUPPORT THE DOLLAR AGAINST A PALETTE OF EUROPEAN CURRENCIES IN COMING DAYS THE IMPACT OF THE RECESSION IS EXPECTED TO COMPEL THE BUNDESBANK GERMANY'S CENTRAL BANK TO CUT RATES SOON LOWER INTEREST RATES MAKE A CURRENCY LESS ATTRACTIVE BY LOWERING THE RETURN OF INVESTMENTS DENOMINATED IN THAT CURRENCY AFTER A ROUND OF PROFITTAKING THEY SAID THE DOLLAR PROBABLY WOULD CONTINUE ITS RISE AGAINST THE MARK BUT THE DOLLAR FELL SLIGHTLY WEDNESDAY AFTER GERMANY LOWERED RATES BY ONETENTH OF A PERCENTAGE POINT TO 759 AT ITS REPURCHASE AGREEMENT AUCTION REPURCHASE AGREEMENTS ARE THE BUNDESBANK'S MAIN INSTRUMENT FOR CONTROLLING LIQUIDITY IN THE GERMAN MONEY MARKET THE DOLLAR RECEIVED SOME SUPPORT LATE IN THE DAY FROM REPORTS THAT MASTER MONEY MANAGER GEORGE SOROS HAD TOLD A GERMAN MAGAZINE THAT THE DOLLAR WAS CHEAP AS LONG AS IT COST LESS THAN TWO MARKS 9306240062 930624 YOUR MONEY MATTERS FOREIGN INDEX FUNDS ARE LONGTERM BETS BY TOM HERMAN STAFF REPORTER OF THE WALL STREET JOURNAL LOOKING TO SPICE UP YOUR PORTFOLIO WITH SOME FOREIGN INVESTMENTS AN INDEX FUND CAN BE AN EASY AND INEXPENSIVE WAY TO DIVERSIFY OVERSEAS INDEX FUNDS ARE MUTUAL FUNDS DESIGNED TO MATCH A BROAD MARKET INDEX WHILE MOST PROFESSIONAL MONEY MANAGERS ACTIVELY BUY AND SELL STOCKS IN AN EFFORT TO BEAT THE INDEXES INDEX FUNDS ARE CONTENT SIMPLY TO TAG ALONG WHICHEVER WAY THE INDEX GOES SO GOES THE INDEX FUND INDEX FUNDS FOR US STOCKS ARE VERY POPULAR WITH INVESTORS BECAUSE OF STUDIES SHOWING THAT INDEXING HAS PRODUCED BETTER LONGTERM RESULTS THAN A LARGE MAJORITY OF ACTIVELY MANAGED FUNDS BUT SOME INVESTMENT STRATEGISTS LONG HAVE ASSUMED THAT INDEXING CAN'T POSSIBLY WORK AS WELL WITH FOREIGN STOCKS AFTER ALL FOREIGN STOCK MARKETS ARE NOTORIOUSLY VOLATILE MUCH MORE COMPLEX AND MUCH LESS EFFICIENT THAN US STOCK MARKETS MONEY MANAGERS MUST FOCUS NOT ONLY ON PICKING STAR STOCKS BUT ON GUESSING RIGHT ON POLITICAL RISKS AS WELL AS FOREIGNEXCHANGE RATE MOVEMENTS EVEN THE BEST STOCK PICK CAN TURN INTO A DISASTER IF THE INVESTOR BETS THE WRONG WAY ON CURRENCIES BUT THE EVIDENCE SHOWS MUCH OF THE SKEPTICISM ABOUT INDEXING FOREIGN MARKETS MAY BE UNFOUNDED ANALYSTS WHO HAVE STUDIED THE SUBJECT SAY INDEXING CAN WORK EXCEEDINGLY WELL IN FOREIGNSTOCK INVESTING OVER LENGTHY PERIODS OF TIME SUCH AS A DECADE OR MORE EVEN THE BESTPERFORMING FOREIGN STOCK FUND OF THE PAST DECADE TEMPLETON FOREIGN FUND FAILED TO KEEP UP WITH MORGAN STANLEY CAPITAL INTERNATIONAL'S EAFE INDEX SAYS AMY ARNOTT MUTUALFUNDS ANALYST AT MORNINGSTAR MUTUAL FUNDS A CHICAGOBASED PUBLICATION EAFE STANDS FOR EUROPE AUSTRALIA AND FAR EAST I USED TO THINK INDEXING OVERSEAS MARKETS DIDN'T MAKE A LOT OF SENSE BUT I MUST ADMIT THE EVIDENCE IS DAUNTING IN FAVOR OF INDEXING SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS THESE NUMBERS ARE VERY POWERFUL EVIDENCE THE TEMPLETON FUND POSTED A 387 TOTAL RETURN FOR THE DECADE ENDED MAY 31 COMPARED WITH 428 FOR THE INDEX MORNINGSTAR SAYS THE INDEX IS EVEN TOUGHER TO BEAT FOR VERY LONG PERIODS WITH US STOCK PRICES NEAR RECORD HIGH LEVELS MANY INVESTMENT STRATEGISTS SAY THIS IS A PARTICULARLY OPPORTUNE TIME TO LOOK FOR BARGAINS OVERSEAS FOREIGN STOCKS GENERALLY LOOK CHEAPER THAN US STOCKS DO NOW SAYS ARTHUR A MICHELETTI SENIOR VICE PRESIDENT OF BAILARD BIEHL & KAISER INC A SAN MATEO CALIF INVESTMENT MANAGEMENT FIRM HE ADDS THAT INTEREST RATES ARE POISED TO DROP FURTHER IN EUROPE WHICH SHOULD BOLSTER EUROPEAN STOCK PRICES INDIVIDUAL INVESTORS WHO DECIDE TO GO THE INDEXING ROUTE HAVE ONLY A HANDFUL OF CHOICES THE BIGGEST BY FAR ARE THE TWO VANGUARD GROUP FUNDS VANGUARD INTERNATIONAL EQUITY INDEX FUNDPACIFIC PORTFOLIO AND VANGUARD INTERNATIONAL EQUITY INDEX FUNDEUROPEAN PORTFOLIO IN ADDITION DISCOUNT BROKER CHARLES SCHWAB IS EXPECTED TO START AN INTERNATIONAL INDEX FUND THIS SUMMER ONE BIG ADVANTAGE OF INDEX FUNDS IS THEY TYPICALLY KEEP EXPENSES LOW FOR EXAMPLE EXPENSES OF VANGUARD'S EUROPEAN FUND AMOUNTED TO ONLY 032 PERCENTAGE POINT LAST YEAR ACCORDING TO MORNINGSTAR THAT COMPARED WITH ABOUT 18 PERCENTAGE POINTS FOR THE AVERAGE FOREIGN STOCK FUND THE VANGUARD FUNDS DO CHARGE A 1 TRANSACTION FEE ON SHARES PURCHASED BUT VANGUARD POINTS OUT THAT THIS FEE IS PAID DIRECTLY TO THE PORTFOLIO NOT TO VANGUARD AND THAT IT IS DESIGNED TO PROTECT EXISTING SHAREHOLDERS IN THE FUND FROM THE PERFORMANCEREDUCING EFFECTS OF TRANSACTION COSTS TYPICALLY INDEX INVESTING WORKS MUCH BETTER IN RISING MARKETS THAN IN FALLING MARKETS INDEX FUNDS STAY FULLY INVESTED WHILE A CLEVER MONEY MANAGER WHO CORRECTLY GUESSES THAT PRICES WILL DROP CAN TAKE STEPS TO AVOID THE CARNAGE COMPARING THE BROAD INTERNATIONAL INDEXES WITH THE PERFORMANCE OF ACTIVELY MANAGED FUNDS SUGGESTS THAT INDEX FUNDS ARE BEST FOR LONGTERM INVESTORS WHILE FOREIGN STOCK INDEX FUNDS HAVEN'T FARED WELL COMPARED WITH ACTIVE MANAGERS DURING THE PAST SEVERAL YEARS VERY FEW ACTIVE MANAGERS HAVE MANAGED TO BEAT THE INDEXES OVER MUCH LONGER TIME PERIODS ONE POTENTIAL DRAWBACK OF A PURE INDEXING APPROACH IS JAPANESE STOCKS REPRESENT A HUGE PERCENTAGE OF INTERNATIONAL INDEXES AND THUS INDEX FUNDS REPRESENT A BIG BET ON JAPAN JAPANESE STOCKS REPRESENTED NEARLY HALF OF THE EAFE INDEX AS OF MAY 31 ACCORDING TO MORGAN STANLEY CAPITAL INTERNATIONAL BURTON G MALKIEL PROFESSOR OF ECONOMICS AT PRINCETON UNIVERSITY AND A VANGUARD DIRECTOR ADVISES INVESTORS TO COMPENSATE BY PUTTING CONSIDERABLY MORE MONEY INTO EUROPEAN INDEX FUNDS THAN PACIFIC INDEX FUNDS FOR EXAMPLE AN INVESTOR WITH A SPARE 10000 MIGHT BUY 7500 OF VANGUARD'S EUROPEAN INDEX FUND AND ONLY 2500 OF ITS PACIFIC FUND SOME ACTIVE MANAGERS RECOMMEND GOING EVEN FURTHER AND STAYING COMPLETELY OUT OF THE MERCURIAL JAPANESE STOCK MARKET BUT TRUE INDEXING BELIEVERS SAY THAT COULD ALSO BE A MISTAKE JAPANESE STOCKS THIS YEAR HAVE PRODUCED DAZZLING RESULTS SURPRISING MANY EXPERTS AND PROVIDING FURTHER EVIDENCE OF THE VALUE OF WORLDWIDE DIVERSIFICATION SOME MONEY MANAGERS ARGUE THAT INVESTORS WHO JUMP INTO INDEX FUNDS MAY BE OVERLOOKING MORE ATTRACTIVE OPPORTUNITIES INDEXFUND INVESTORS WILL BE MISSING ONE OF THE BIGGEST OPPORTUNITIES OUT THEREEMERGING MARKETS SUCH AS THOSE IN SOUTHEAST ASIA AND SOUTH AMERICA SAYS FIONA BIGGS A DREYFUS CORP PORTFOLIO MANAGER SINCE THEY EMERGING MARKETS ARE A MINUSCULE COMPONENT OF AN INDEX FUND IT WOULD BE A SHAME TO MISS OUT ON HAVING EXPOSURE THERE BY GOING THE INDEX FUND ROUTE INVESTORS WHO JUMP INTO INDEX FUNDS SHOULD BE AWARE THAT THESE FUNDS TYPICALLY DON'T HEDGE CURRENCY EXPOSURE IF THE DOLLAR SURGES INVESTORS COULD LOSE MONEY FROM THOSE FLUCTUATIONS BUT INDEX FUND ENTHUSIASTS ARE HIGHLY SKEPTICAL ABOUT THE ABILITY OF ACTIVE MANAGERS TO FORECAST WHERE CURRENCIES ARE GOING TOTAL RETURN IN US DOLLARS OF THE TWO LARGEST FOREIGN STOCK INDEX MUTUAL FUNDS SO FAR THIS YEAR AND FOR THE 12 MONTHS THROUGH JUNE 21 9306240061 930624 BUSINESS BRIEF ROTHMANS INTERNATIONAL PLC BRITISH FIRM MAY BE SPLIT INTO TWO SEPARATE GROUPS ROTHMANS INTERNATIONAL PLC A BRITISH TOBACCO AND LUXURY GOODS CONCERN IS NEGOTIATING WITH RICHEMONT SECURITIES ITS SWISS PARENT ABOUT A REORGANIZATION THE REORGANIZATION WOULD RESULT IN TWO SEPARATE GROUPS FOCUSING ON TOBACCO AND LUXURY GOODS THE COMPANIES SAID RICHEMONT OWNS 62 OF ROTHMANS WHICH IN TURN OWNS 57 OF DUNHILL HOLDINGS PLC THE REORGANIZATION PLANNED AT THE PROMPTING OF RICHEMONT WOULD PROVIDE FOR SHAREHOLDERS OF ROTHMANS AND DUNHILL TO EXCHANGE THEIR CURRENT HOLDINGS FOR SHARES IN THE NEW TOBACCO AND LUXURY GROUPS RICHEMONT WOULD HOLD MAJORITY STAKES IN BOTH NEW GROUPS DEALINGS IN ROTHMANS AND DUNHILL HOLDINGS SHARES WERE SUSPENDED YESTERDAY ON THE LONDON EXCHANGE AFTER A SHARP RISE ON TUESDAY RICHEMONT SHARES WERE SUSPENDED IN ZURICH AS WELL AN ADVISER TO ROTHMANS SAID THE REORGANIZATION ANNOUNCEMENT WAS SCHEDULED TO BE MADE ON FRIDAY ALONG WITH YEAREND EARNINGS RESULTS BUT DISCLOSURE OF THE TALKS WAS MADE SOONER THAN PLANNED AS A RESULT OF MARKET MOVEMENTS 9306240060 930624 ECONOMY ECONOMIC GROWTH REMAINS MODERATE WITH LITTLE INFLATION FED SURVEY SAYS BY LUCINDA HARPER AND CHRIS FRAMPTON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON BUSINESS ACTIVITY IS INCREASING AT A SLOW TO MODERATE PACE IN MOST OF THE NATION ACCORDING TO A FEDERAL RESERVE SURVEY OF ITS 12 DISTRICT BANKS THE REPORT WHICH COVERS ALL OF MAY AND THE FIRST HALF OF JUNE FOUND THAT RETAIL SALES ENERGY INDUSTRIES AND THE CONSTRUCTION SECTOR ARE ON GENERALLY UPWARD TRENDS MANY PRIVATE ECONOMISTS FEEL THAT CONSUMER SPENDING AND HOME SALES WILL GIVE THE ECONOMY MORE OF A PUSH IN THE SECOND QUARTER THAN IN THE LACKLUSTER FIRST THREE MONTHS OF THE YEAR THE MANUFACTURING SECTOR WHICH STALLED DURING THE WINTER MONTHS WAS STEADY OR IMPROVING ACCORDING TO THE REPORT NEVERTHELESS EXPECTATIONS ARE GENERALLY FOR SLOW GROWTH WITH NO MAJOR HOT SPOTS IN THE ECONOMY PART OF THE REASON THE ECONOMY MAY SEEM STUCK IN FIRST GEAR IS CONCERN ABOUT THE CLINTON ADMINISTRATION'S ECONOMIC PLANS BUSINESSES FEEL THAT INVESTMENT AND HIRING WERE BEING DELAYED BECAUSE OF UNCERTAINTIES ABOUT FEDERAL TAX INCREASES AND NATIONAL HEALTH CARE REFORM THE REPORT SAID THE FED NOTED ONLY SCATTERED REPORTS OF UPWARD PRESSURE ON PRICES AMONG MANUFACTURERS ALTHOUGH SOME FED OFFICIALS ARE STILL WORRIED ABOUT INDICATIONS EARLIER THIS YEAR THAT THE INFLATION RATE WAS PICKING UP THE ODDS OF AN IMMINENT INCREASE IN SHORTTERM INTEREST RATES DIMINISHED SUBSTANTIALLY WHEN THE LABOR DEPARTMENT REPORTED THIS MONTH THAT INFLATION WAS SUBDUED IN MAY ASKED IF HE EXPECTS THE FED TO INCREASE SHORTTERM RATES PRESIDENT CLINTON SAID WHATEVER THEY DO I THINK LONGTERM RATES WILL STAY DOWN THE PRESIDENT MADE CLEAR THAT IN HIS VIEW THERE IS NO INFLATION IN THIS ECONOMY WHEN PRESSED FOR AN OPINION ON WHAT THE FED SHOULD DO HE REPLIED THAT'S A DECISION THEY HAVE TO MAKE HERE IS A SUMMARY OF THE 12 FEDERAL RESERVE DISTRICTS BOSTON THE ECONOMIC RECOVERY CONTINUED TO DISAPPOINT IN MAY EXPANDING AT ITS NOW FAMILIAR SLUGGISH PACE RAISED RETAIL HOPES HAD PROMPTED HEAVY MARKETING BUT SALES SLOWED FOR THE MOST PART MANUFACTURING SALES REMAINED FLAT AS THE EXPECTED LARGE RECOVERY IN HOUSING FAILED TO MATERIALIZE COMMERCIAL REAL ESTATE SHOWED ONLY SMALL SIGNS OF IMPROVEMENT NEW YORK HOME BUILDING ACTIVITY SLOWED IN PARTS OF THE DISTRICT QUIETING EARLIER OPTIMISM THAT THE MARKET WOULD SURPASS LAST YEAR'S LEVEL OF HOME STARTS THE ENTIRE DISTRICT'S ECONOMIC HEALTH CONTINUED TO IMPROVE EVEN THOUGH RETAIL SALES WERE HURT BY POOR WEATHER AND A LATE MEMORIAL DAY THAT COULD RELEGATE HOLIDAY PROMOTIONAL BENEFITS TO JUNE HOME BUILDING ACTIVITY SLOWED UNEMPLOYMENT WAS VARIED THROUGHOUT THE DISTRICT AND FINANCIAL LENDING WAS LITTLE CHANGED PHILADELPHIA OPTIMISM WAS ON THE WANE MAINLY BECAUSE OF FALLING CONSUMER CONFIDENCE STILL RETAILERS REPORTED A RELATIVELY HEALTHY SALES PACE FOR MAY AND MANUFACTURES ARE EXPECTING IMPROVEMENTS IN ORDERS AND SHIPMENTS MOST BANKERS INDICATED THAT LOAN DEMAND REMAINED SOFT CLEVELAND DEFENSE AND CONSTRUCTIONRELATED MANUFACTURERS REPORTED WEAKNESS IN THEIR MARKETS TAINTING OTHERWISE HEALTHY GROWTH IN OVERALL MANUFACTURING THE REST OF THE AREA'S ECONOMY SAW THE CONTINUATION OF THE EXPANSION THAT BEGAN IN APRIL AS BOTH RETAIL SALES AND BANK LOAN DEMAND ROSE PRODUCERS HAVE HAD TO DEAL WITH INFLATIONARY PRESSURES IN THE PAST FEW MONTHS BUT MOSTWERE ABLE TO SUSTAIN RELATIVELY FLAT PRICES RICHMOND VA THE DISTRICT'S ECONOMY GREW AT AN UNEVEN MODEST PACE WITH GROWTH BEING DAMPED IN SOME AREAS BY THE THREAT OF MILITARY BASE CLOSINGS RETAIL SALES EDGED UP WHILE MANUFACTURING ACTIVITY WAS FLAT RESIDENTIAL SALES ROSE SHARPLY FROM APRIL AS DID CROP ACTIVITY HELPED BY GOOD WEATHER THERE WAS A SLIGHT DECREASE IN LOAN DEMAND DESPITE FAVORABLE MORTGAGE RATES ATLANTA LED BY GAINS IN CONSUMER SPENDING AND SINGLEFAMILY HOUSING THE OVERALL ECONOMY GREW SLIGHTLY IN MAY MULTIFAMILY AND COMMERCIAL REAL ESTATE REMAINED WEAK MANUFACTURERS WEREN'T OPTIMISTIC ABOUT GROWTH BUT GLAD TO SEE STABLE PRICES DURING MAY AND EARLY JUNE COMMERCIAL LOAN DEMAND GREW LITTLE CHICAGO AIDED BY IMPROVING WEATHER RETAIL SALES GROWTH PICKED UP MODESTLY MANUFACTURING ALSO CONTINUED TO EXPAND DESPITE SEVERAL WEAK SECTORS MOTORVEHICLE PRODUCTION GAINED MOMENTUM AS PLANS CALLED FOR INCREASED THIRDQUARTER PRODUCTION SURVEYS AND REPORTS FROM BUSINESS SHOWED NO EVIDENCE OF UPWARD PRESSURE ON PRICES ST LOUIS CHANGES IN ECONOMIC ACTIVITY WERE MIXED IN MAY AS MANY COMPANIES REPORTED UNCERTAINTY ABOUT THE FEDERAL BUDGET DEFICIT AND HEALTHCARE PROPOSALS AS MAJOR IMPEDIMENTS RETAILERS AND CONSUMERS WERE HESITANT TO COMMIT TO MAJOR SPENDING INCREASES UNTIL CONGRESSIONAL DELIBERATIONS ARE COMPLETE WET WEATHER FAILED TO SLOW HOME BUILDING BUT HURT FARMERS TOTAL LOAN GROWTH HAS SLOWED AT LARGE BANKS IN THE RECENT MONTHS MINNEAPOLIS CONSTRUCTION AND REAL ESTATE CONTINUED THEIR GROWTH IN MAY HELPING THE REGION SPEED UP ITS ECONOMIC RECOVERY CONSUMER OUTLAYS ON MERCHANDISE MAY BE REBOUNDING AFTER A SLUGGISH SPRING AND NEW AUTOMOBILE SALES ARE STILL STRONG MOREOVER OFFICIALS ARE OPTIMISTIC THAT TOURISM REVENUE WILL INCREASE IN COMING MONTHS LABOR MARKETS ARE IMPROVING AS IS MANUFACTURING AND MINING LIVESTOCK PRICES ARE ALSO STRONG AND PRODUCTION IS ABOVE YEAREARLIER LEVELS THE ONLY DARK SPOT ON THE RECOVERY WAS THE WET WEATHER THAT CONTINUED TO DELAY GRAIN PLANTING THE RAIN HAS HOWEVER HELPED ENSURE GOOD SOIL ACROSS VIRTUALLY THE ENTIRE REGION KANSAS CITY MODERATE GROWTH WAS THE THEME IN MAY RETAIL SALES ROSE HOUSING ACTIVITY REMAINED STRONG AND BANK LOAN ACTIVITY CONTINUED TO IMPROVE FARM INCOME AND THE ENERGY SECTOR BOTH WERE HEALTHY ON THE PRICE FRONT RETAIL PRICES WERE STABLE AS WERE MANUFACTURING INPUTS BUSINESS CONTACTS ARE OPTIMISTIC THAT THE ECONOMY WILL CONTINUE TO EXPAND ASSUMING GOOD WEATHER IN THE DISTRICT DALLAS SLOW GROWTH CHARACTERIZED THE ECONOMY MANUFACTURING ACTIVITY IMPROVED SINGLEFAMILY HOMES LED THE WAY IN THE CONSTRUCTION AND REAL ESTATE MARKETS AS LOAN DEMAND CONTINUED TO GROW INCREASING OPTIMISM FOR GROWTH STILL OIL AND GAS DRILLING REMAINED AT LOW LEVELS THE SERVICE SECTOR EXPANDED SLOWLY AS DID RETAIL SALES UNCERTAINTY ABOUT CONGRESSIONAL TAX PROPOSALS WAS SAID TO BE HAMPERING GROWTH SAN FRANCISCO CALIFORNIA REPORTED THE WEAKEST STATE ECONOMY IN THIS DISTRICT AS ACTIVITY CONTINUED TO SLUMP IN AEROSPACE MANUFACTURING MANAGED GROWTH ONLY IN SELECTED AREAS AGRICULTURAL CONDITIONS HAVE BEEN GENERALLY FAVORABLE IN THE PAST FEW MONTHS DESPITE THE WET WEATHER THAT IS HARMING FRUIT AND VEGETABLE CROPS IN CALIFORNIA AND OREGON RETAIL SALES HAVE REMAINED FLAT POSSIBLY INDICATING CONSUMER UNCERTAINTY IN LIGHT OF PENDING TAX LEGISLATION IN CONGRESS 9306240059 930624 TAMBRANDS SETS CHARGE IN PERIOD OF 20 MILLION COSTS ARE CITED FOR ACTION IN THE SECOND QUARTER NO DECISION ON SALE BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL TAMBRANDS INC SAID IT IS TAKING A 20 MILLION CHARGE AGAINST SECONDQUARTER EARNINGS FOR RESTRUCTURING AND OTHER COSTS IT STOPPED SHORT OF SAYING THE COMPANY ISN'T FOR SALE TAMBRANDS SAID IN A STATEMENT THAT ITS BOARD OF DIRECTORS HAS MADE NO DECISION TO SELL THE COMPANY AT A REGULARLY SCHEDULED BOARD MEETING JUNE 22 THE WALL STREET JOURNAL REPORTED MONDAY THAT TAMBRANDS IS EXPLORING A POSSIBLE SALE OF THE COMPANY THE COMPANY'S STOCK ROSE 15 TO 4625 ON THE REPORT AFTER YESTERDAY'S STATEMENT BY THE COMPANY IT FELL ONLY 125 CENTS TO 45375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE INDICATING WALL STREET STILL BELIEVES A SALE IS POSSIBLE BECAUSE THEY HAVEN'T REALLY COME OUT AND SAID NO WAY WILL WE SELL THE COMPANY' MAYBE THERE'S SPECULATION THAT THEY MAY ULTIMATELY OPT TO DO THAT SAID BONITA AUSTIN AN ANALYST AT SHEARSON LEHMAN BROS ONE COMPANY SAID TO BE INTERESTED IN BUYING TAMBRANDS IS JOHNSON & JOHNSON WHICH DECLINED TO COMMENT THE 20 MILLION CHARGE WAS RELATED TO AN ONGOING PROGRAM TO REDUCE OPERATING COSTS AND INCREASE EFFICIENCY THE COMPANY SAID PEOPLE CLOSE TO THE COMPANY SAID THE CHARGE ALSO INCLUDES THE ANTICIPATED COSTS OF A SEVERANCE PACKAGE FOR FORMER CHAIRMAN AND CHIEF EXECUTIVE MARTIN FC EMMETT WHO WAS OUSTED EARLIER THIS MONTH BY THE BOARD AFTER IT ANNOUNCED THAT SECONDQUARTER EARNINGS WOULD BE SIGNIFICANTLY BELOW LAST YEAR'S 72 CENTS A SHARE AND THAT FULLYEAR EARNINGS ALSO WOULD BE LOWER THAN 1992'S 302 PER SHARE TAMBRANDS HAD BEEN PROJECTING 15 EARNINGS GROWTH EARLIER THIS YEAR OVER THE COURSE OF MR EMMETT'S FOURYEAR TENURE TAMBRANDS UPGRADED THE TERMS OF HIS SEVERANCE AND PENSION PLANS FAR BEYOND THOSE GRANTED TO HIS PREDECESSOR EDWIN SHUTT JR PEOPLE CLOSE TO THE COMPANY SAY TAMBRANDS IS TAKING A 4 MILLION PRETAX CHARGE FOR MR EMMETT'S SEVERANCE PACKAGE WHICH IS STILL BEING FINALIZED COMPENSATION CONSULTANT ROBERT SALWEN OF WILLIAM M MERCER INC ESTIMATES MR EMMETT'S CONTRACT ENTITLES HIM TO SEVERANCE OF A MINIMUM OF 275 MILLION CASH AND THREE YEARS OF FULL BENEFITS ASSUMING HE LEFT THE COMPANY UNDER NORMAL CIRCUMSTANCES IT ISN'T CLEAR HOW HIS DISMISSAL WOULD AFFECT THOSE TERMS MR EMMETT COULDN'T BE REACHED FOR COMMENT HOWARD WENTZ JR CHAIRMAN OF THE TAMBRANDS BOARD REITERATED IN A STATEMENT THAT THE COMPANY IS SEEKING A NEW CHIEF EXECUTIVE WITH STRONG MARKETING AND MANAGEMENT EXPERIENCE IN BRANDED CONSUMER PRODUCTS TAMBRANDS BASED IN WHITE PLAINS NY SAID PREVIOUS INVESTMENTS IN TECHNOLOGY WILL HELP IT OPERATE WITH FEWER EMPLOYEES AND REDUCED MANUFACTURING AND ADMINISTRATIVE OVERHEAD THE RESTRUCTURING WHICH IS SAID TO INVOLVE LAYOFFS IN A NUMBER OF DEPARTMENTS WAS THE RESULT OF AN INTENSIVE STUDY BEGUN IN MARCH WALL STREET ANALYSTS REPORT VERY LITTLE COMMUNICATION WITH TAMBRANDS OFFICIALS SINCE MR EMMETT'S DEPARTURE EARLY THIS MONTH BUT SOME EXPRESSED SURPRISE AT THE POSSIBLE LAYOFFS NOTING THAT TAMBRANDS' RELATIVELY SMALL WORK FORCE WAS SLASHED 31 TO 3300 DURING MR EMMETT'S FOURYEAR TERM MR EMMETT COULDN'T BE REACHED FOR COMMENT 9306240058 930624 BUSINESS BRIEF DOVER CORP SUBSIDIARY AGREES TO ACQUIRE HEIL CO FOR 130 MILLION DOVER CORP NEW YORK SAID ITS DOVER INDUSTRIES UNIT AGREED TO ACQUIRE HEIL CO A CLOSELY HELD MAKER OF GARBAGE TRUCKS TRAILERIZED TANKS AND CONSTRUCTION DUMP BODIES FOR 130 MILLION HEIL BASED IN CHATTANOOGA TENN HAD 1992 SALES OF ABOUT 165 MILLION IT WILL OPERATE AS A SEPARATE COMPANY WITHIN DOVER INDUSTRIES UNDER ITS EXISTING MANAGEMENT DOVER SAID THE TRANSACTION IS EXPECTED TO CLOSE IN JULY SUBJECT TO REGULATORY CLEARANCES AND APPROVAL BY HEIL'S SHAREHOLDERS DOVER IS A DIVERSIFIED MANUFACTURER WHOSE FIVE INDEPENDENT UNITS HAD COMBINED SALES OF 23 BILLION IN 1992 9306240057 930624 REVIEW & OUTLOOK EDITORIAL ASIDES NOW THEY TELL US AT CONSIDERABLE EXPENSE US GOVERNMENT RESEARCHERS USING NASA'S SAMPEX SATELLITE HAVE DISCOVERED THAT THE SUN'S RAYS CAUSE CHEMICAL REACTIONS IN THE EARTH'S ATMOSPHERE BOTH DESTROYING AND CREATING OZONE ONE CAN INFER THAT THIS HAS BEEN GOING ON FOR MANY MILLIONS OF YEARS WITH NO HARM TO LIFE ON EARTH THIS WON'T COME AS NEWS TO THE SERIOUS METEOROLOGICAL SCIENTISTS WHO HAVE CHALLENGED CHICKEN LITTLE THEORIES THAT THE SKY OZONE LAYER IS FALLING BECAUSE OF MANMADE REFRIGERANTS AND AEROSOLS BUT THE CHICKEN LITTLES HAVE PREVAILED FORCING SUCH THINGS AS THE MASSIVE REDESIGN OF REFRIGERATION AND AIR CONDITIONING EQUIPMENT THAT TOO HAS BEEN EXPENSIVE BUT THEN POLITICAL SCIENCE USUALLY IS 9306240056 930624 EDUCATION PACKAGE PASSES COMMITTEE IN PARTYLINE VOTE WASHINGTON THE CLINTON ADMINISTRATION'S EDUCATION PACKAGE WAS APPROVED BY A HOUSE COMMITTEE ON A PARTISAN VOTE WEDNESDAY AFTER THE RANKING REPUBLICAN BECAME INFURIATED OVER DEMOCRATIC CHANGES IN THE LEGISLATION WE'RE NOT REFORMING ANYTHING SHOUTED REP WILLIAM GOODLING AFTER DEMOCRATS ON THE HOUSE EDUCATION AND LABOR COMMITTEE ADDED AN AMENDMENT REQUIRING STATES TO REPORT HOW THEY WOULD ENSURE THAT SCHOOLS MEET EDUCATION GOALS WE'RE SHIFTING THE WHOLE FOCUS OF REFORM FROM WHAT OUR CHILDREN LEARN TO WHAT BUREAUCRATS SPEND THE PENNSYLVANIA REPUBLICAN SAID WHAT A MISTAKE UNDER THE LEGISLATION A NATIONAL EDUCATION STANDARDS AND IMPROVEMENT COUNCIL COMPOSED OF EDUCATORS BUSINESS REPRESENTATIVES AND MEMBERS OF THE PUBLIC WOULD DEVELOP MODEL STANDARDS FOR STUDENT PERFORMANCE CURRICULUM AND SCHOOL QUALITY NOBODY WOULD BE REQUIRED TO MEET THE STANDARDS BUT STATES DEVISING PLANS BASED ON THEM WOULD QUALIFY FOR CERTAIN FEDERAL GRANTS YOU ARE BASICALLY SAYING HERE ARE SOME MORE UNFUNDED MANDATES FOLKS' MR GOODLING ARGUED DEMOCRATS HOWEVER COUNTERED THAT STATES SHOULD BE HELD ACCOUNTABLE IN SOME WAY FOR SCHOOL REFORM WITHOUT REQUIREMENTS YOU'RE ESSENTIALLY TELLING STATES TO TAKE THE MONEY AND RUN SAID REP JACK REED A RHODE ISLAND DEMOCRAT IN ADDITION TO DEVISING NATIONAL EDUCATION STANDARDS THE LEGISLATION CALLS FOR THE CREATION OF STANDARDS AIMED AT IMPROVING THE QUALITY OF THE WORK FORCE UNDER THE PLAN A BOARD WOULD DEVELOP SKILL STANDARDS FOR VARIOUS OCCUPATIONS 9306240055 930624 NATIONAL MEDICAL TO GET 135 MILLION IN HILLHAVEN SHIFT SANTA MONICA CALIF NATIONAL MEDICAL ENTERPRISES INC SAID IT WILL RECEIVE 135 MILLION IN CASH AND BE RELEASED FROM 400 MILLION OF OBLIGATIONS UPON COMPLETION OF A PLANNED REVAMPING OF FINANCIAL TIES WITH ITS FORMER HILLHAVEN CORP UNIT THE CHANGES ARE A BIG STEP IN NATIONAL MEDICAL'S CONTINUING SEPARATION FROM HILLHAVEN A NURSING HOME CONCERN THAT NATIONAL MEDICAL SPUN OFF TO SHAREHOLDERS IN JANUARY 1990 NATIONAL MEDICAL WILL REMAIN HILLHAVEN'S LARGEST SHAREHOLDER WITH A 14 INTEREST THAT COULD RISE TO AS MUCH AS 25 AFTER EXERCISE OF WARRANTS BUT NATIONAL MEDICAL A HEALTHCARE SERVICES CONCERN WON'T ANY LONGER BE A LESSOR OR LENDER TO ITS FORMER SUBSIDIARY UPON THE COMPLETION OF THESE TRANSACTIONS WE WILL HAVE ACQUIRED ALL 115 NURSING CENTERS ORIGINALLY LEASED FROM NATIONAL MEDICAL RETIRED ALL DEBT DUE TO NATIONAL MEDICAL AND OBTAINED SIGNIFICANT FINANCING INDEPENDENT OF NATIONAL MEDICAL'S GUARANTEES SAID BRUCE L BUSBY HILLHAVEN'S CHIEF EXECUTIVE OFFICER THE DEAL IS NATIONAL MEDICAL'S FIRST SIGNIFICANT NEWS SINCE FORMER INVESTMENT BANKER JEFFREY C BARBAKOW BECAME CHIEF EXECUTIVE ON JUNE 1 HIS PREDECESSOR RICHARD K EAMER REMAINS CHAIRMAN OF NATIONAL MEDICAL AND HILLHAVEN UNDER TERMS OF THE HILLHAVEN TRANSACTION NATIONAL MEDICAL WOULD GET 135 MILLION FROM THE SALE OF 23 NURSING HOMES AND 92 MILLION FROM REPAYMENT OF DEBT HILLHAVEN ALSO WOULD PAY OFF ABOUT 266 MILLION OF DEBT GUARANTEED BY NATIONAL MEDICAL AND REPLACE ITS FORMER PARENT AS GUARANTOR ON 140 MILLION OF OTHER OBLIGATIONS NATIONAL MEDICAL WOULD CONTINUE TO GUARANTEE ABOUT 300 MILLION OF LEASES HILLHAVEN TACOMA WASH SAID IT IS NEGOTIATING WITH BANKS TO PROVIDE UP TO 400 MILLION OF FINANCING HILLHAVEN PLANS TO ISSUE ABOUT 175 MILLION OF SENIOR SUBORDINATED DEBT AND 120 MILLION IN PREFERRED STOCK TO NATIONAL MEDICAL 9306240054 930624 LAW USABU DHABI DISPUTE IS BREWING OVER PROCEEDS FROM SALE OF BCCI UNIT BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS FIRST UNION CORP OF CHARLOTTE NC COMPLETED ITS PURCHASE OF BCCILINKED FIRST AMERICAN METRO CORP A BATTLE IS SHAPING UP OVER WHO WILL GET THE 453 MILLION IN SALE PROCEEDS THE CLASH IS LIKELY TO PIT SHEIKH ZAYED BIN SULTAN ALNAHYAN THE RULER OF THE OILRICH EMIRATE OF ABU DHABI AGAINST US AUTHORITIES SIGNIFICANTLY AFFECTING US RELATIONS WITH ITS PERSIAN GULF ALLIES UNTIL 1991 FIRST AMERICAN A WASHINGTON DC BANK HOLDING COMPANY AND A UNIT OF FIRST AMERICAN BANCSHARES INC HAD BEEN SECRETLY OWNED BY BANK OF CREDIT & COMMERCE INTERNATIONAL THE ROGUE BANK SHUT BY REGULATORS IN JULY 1991 AFTER THE DISCOVERY OF WIDESPREAD FRAUD AND CORRUPTION BCCI HOLDINGS LUXEMBOURG SA IN TURN WAS 77 OWNED BY SHEIKH ZAYED MEMBERS OF HIS FAMILY AND AN ABU DHABI GOVERNMENT AGENCY THAT HE CONTROLS IN ADDITION SHEIKH ZAYED AND MEMBERS OF HIS FAMILY HAD OWNED FURTHER SHARES IN FIRST AMERICAN THE ABU DHABI AUTHORITIES ALSO MADE FIVE SEPARATE LOANS TO FIRST AMERICAN FROM DECEMBER 1990 TO MARCH 1992 THESE LOANS INCLUDING ACCRUED INTEREST NOW TOTAL AS MUCH AS 220 MILLION ACCORDING TO A US LAWYER REPRESENTING SHEIKH ZAYED YESTERDAY AFTERNOON FIRST UNION WIRED THE 453 MILLION IT IS PAYING FOR FIRST AMERICAN TO A COURTAPPOINTED TRUSTEE HARRY ALBRIGHT JR WHO IS OVERSEEING THE SALE IN JUNE 1992 FEDERAL JUDGE JOYCE HENS GREEN APPOINTED MR ALBRIGHT TO MANAGE VOTE AND DISPOSE OF BCCI'S SHARES IN FIRST AMERICAN SHEIKH ZAYED'S US LAWYERS AND OTHER PEOPLE CLOSE TO THE MATTER SAID THEY EXPECT THE TRUSTEE AND FIRST AMERICAN'S REMAINING UNITS TO MOVE TO BLOCK ABU DHABI'S ACCESS TO THE SALE PROCEEDS SEVERAL FIRST AMERICAN HOLDING COMPANIES WEREN'T INCLUDED IN THE SALE TO FIRST UNION THE TRUSTEE WILL PROBABLY TAKE SUCH ACTION BECAUSE THERE ARE GROWING SUSPICIONS ABOUT THE DEGREE OF ABU DHABI INVOLVEMENT IN THE ALLEGED WRONGDOING AT BCCI THE ABU DHABI AUTHORITIES FOR EXAMPLE HAVEN'T ALLOWED US INVESTIGATORS ACCESS TO SEVERAL BCCI OFFICERS WHO ARE UNDER HOUSE ARREST IN ABU DHABI OR TO MANY BCCI DOCUMENTS HELD IN THE EMIRATE DESPITE PUBLIC PLEDGES OF COOPERATION THE EMIRATE HAS CONTINUED TO DENY ACCESS IN ADDITION MANY PEOPLE IN ABU DHABI WERE INTRICATELY INVOLVED WITH BCCI EFFECTIVELY PLAYING A PART IN SOME OF THE WRONGDOING THAT ALLEGEDLY WENT ON AT THE BANK US AND BRITISH INVESTIGATORS BOTH HAVE CONCLUDED THAT ABU DHABI GOVERNMENT OFFICIALS WERE AWARE OF MUCH OF THE WRONGDOING AT BCCI FOR MONTHS IF NOT YEARS BEFORE IT BECAME PUBLIC CERTAINLY BCCI AND SHEIKH ZAYED AND HIS ENTOURAGE INTERTWINED THEIR INVESTMENTS ACCORDING TO FIRST AMERICAN'S RECORDS SHEIKH ZAYED PAID AS MUCH AS 459 MILLION FOR AN 8 STAKE IN FIRST AMERICAN THE ABU DHABI INVESTMENT AUTHORITY AN AGENCY CONTROLLED BY SHEIKH ZAYED PAID AS MUCH AS 424 MILLION FOR A 74 STAKE AND SHEIKH ZAYED'S SON SHEIKH KHALIFA PAID UP TO 57 MILLION FOR A 99 HOLDING MEANTIME BCCI SEPARATELY HELD AS MUCH AS 50 OF FIRST AMERICAN'S STOCK THROUGH VARIOUS PURPORTED SHAREHOLDERS 9306240053 930624 MARKETING & MEDIA THREE RADIO CONCERNS OWNING 17 STATIONS ARE CLOSE TO MERGER BOSTON RADIO STATION OWNERS STONER BROADCASTING SYSTEM ATLANTIC RADIO AND MULTI MARKET COMMUNICATIONS SAID THEY ARE IN FINAL STAGES OF NEGOTIATIONS TO MERGE INTO A NEW COMPANY AMERICAN RADIO SYSTEMS INC THE MERGED COMPANY TO BE BASED IN BOSTON WILL HAVE AN INITIAL CAPITALIZATION EXCEEDING 100 MILLION AND WILL RANK AMONG THE TOP 20 RADIO BROADCASTING COMPANIES WITH ANNUAL REVENUE THAT AN INDUSTRY OBSERVER ESTIMATED AT 50 MILLION TO 60 MILLION THE MERGER IS EXPECTED TO BE COMPLETED WITHIN DAYS SAID DAVID PEARLMAN PRESIDENT OF MULTI MARKET WHO WILL BE CHIEF OPERATING OFFICER OF THE NEW VENTURE THE 17STATION COMPANY WHOSE CHIEF EXECUTIVE OFFICER WILL BE STEVE DODGE CURRENT CHAIRMAN OF ATLANTIC RADIO EXPECTS TO EVENTUALLY EXPAND ITS RESOURCES THROUGH A PUBLIC EQUITY OFFERING 9306240052 930624 EPA SAYS IT WILL SEEK QUICKER SETTLEMENTS WITH SMALL POLLUTERS WASHINGTON THE ENVIRONMENTAL PROTECTION AGENCY MOVING TO FOCUS ITS RESOURCES ON THE NATION'S BIGGEST POLLUTERS WILL SEEK TO REACH QUICK SETTLEMENTS WITH BUSINESSES THAT ARE SMALL POLLUTERS THE EFFORTS WILL FOCUS ON BUSINESSES INVOLVED IN THE AGENCY'S HAZARDOUS WASTE CLEANUP PROGRAM KNOWN AS THE SUPERFUND WHICH IS UP FOR REAUTHORIZATION NEXT YEAR CRITICS HAVE CHARGED THAT THE PROGRAM COSTS TOO MUCH TAKES TOO LONG AND DOES TOO LITTLE RESPONDING TO SUCH CONCERNS THE EPA ISSUED A REPORT OUTLINING STEPS IT WILL TAKE TO DEAL MORE EFFECTIVELY WITH THE WORST POLLUTERS THE OFFICIALS NOW PLAN TO BARGAIN WITH THE NATION'S MINOR POLLUTERS ROBERT SUSSMAN EPA'S DEPUTY ADMINISTRATOR SAID THE AGENCY IS GIVING ITS REGIONAL OFFICES GREATER FREEDOM AND FLEXIBILITY TO SETTLE THE AGENCY HOPES THAT BY ENTERING EARLY AND OFTEN INTO MORE PACTS WITH BUSINESSES THAT ARE SMALL POLLUTERS THE AGENCY CAN SAVE MONEY AND SPEED CLEANUPS THIS YEAR THE EPA HAS ALREADY COMPLETED 12 SUCH SETTLEMENTS INVOLVING 650 PARTIES IN THE NEXT 18 MONTHS THE AGENCY EXPECTS TO REACH 50 MORE AGREEMENTS THE EPA ALSO OUTLINED INITIATIVES DESIGNED TO REDUCE UNNECESSARY FEDERAL INVOLVEMENT IN THE CLEANUP PROCESS IN THE NEXT FEW MONTHS THE AGENCY INTENDS TO ISSUE STANDARDS TO HELP BUSINESSES CLEAN UP CERTAIN TYPES OF WASTE SITES WITHOUT CONFERING WITH EPA OFFICIALS AT EVERY STEP AS IS NOW THE CASE IN ADDITION THE AGENCY IS DISCUSSING WAYS THAT BUSINESS MIGHT BE ABLE TO FINANCE CLEANUP EFFORTS WITHOUT USING FEDERAL FUNDS 9306240049 930624 BUSINESS BRIEF LM ERICSSON TELEFON CHINESE VENTURE IS PLANNED TO HANDLE SWITCH DELIVERIES LM ERICSSON TELEFON SAID IT WILL FORM A JOINT VENTURE WITH CHINA'S GUANGDONG PROVINCE TELEPHONE AUTHORITY TO SUPPORT THE SWEDISH COMPANY'S DELIVERY OF DIGITAL SWITCHING EQUIPMENT ERICSSON STOCKHOLM SAID THE VENTURE IS WITH THE TELEPHONE ADMINISTRATION OF GUANGDONG AND THE PURCHASING AGENCY GUANGDONG MACHIMPEX ERICSSON WILL HOLD A MAJORITY IN THE COMPANY TO BE CALLED GUANGDONG ERICSSON ENGINEERING CO THE NEW COMPANY IS EXPECTED TO BEGIN OPERATING IN EARLY 1995 SEPARATELY ERICSSON SAID IT RECEIVED 26 MILLION IN CONTRACTS FROM HUNGARIAN TELECOMMUNICATIONS CO FOR NEW DIGITAL SWITCHES AND EXTENSIONS OF EXISTING SWITCHES ERICSSON INTRODUCED ITS DIGITALSWITCHING SYSTEM IN HUNGARY IN 1989 AND IS TODAY THE MAIN SWITCHING SUPPLIER THERE 9306240048 930624 TIME WARNER APPLE JOIN FORCES TO MARKET MULTIMEDIA PRODUCTS BURBANK CALIF TIME WARNER INTERACTIVE GROUP A DIVISION OF TIME WARNER INC AND APPLE COMPUTER INC ANNOUNCED A THREEYEAR ALLIANCE TO BRING INTERACTIVE MULTIMEDIA OUT OF THE COMPUTER INDUSTRY AND INTO THE HOME ENTERTAINMENT MARKET IT WAS THE LATEST OF SEVERAL MULTIMEDIA ALLIANCES ANNOUNCED IN RECENT DAYS AND FOLLOWS LAST WEEK'S ANNOUNCEMENT OF A PACT BETWEEN TIME WARNER INTERACTIVE GROUP AND INTERNATIONAL BUSINESS MACHINE CORP'S EDUQUEST UNIT TO UNDERTAKE JOINT DEVELOPMENT OF CDROM PRODUCTS UNDER THE NEW PACT APPLE'S PIE OR PERSONAL INTERACTIVE ELECTRONICS GROUP WILL OFFER AT RETAIL A FULL LINE OF CDROM SOFTWARE FROM TIME WARNER INTERACTIVE GROUP IN ADDITION APPLE WILL OFFER TIME WARNER INTERACTIVE GROUP'S CDROM PRODUCT LINE TO THE EDUCATION AND GENERAL BUSINESS MARKET THE TWO COMPANIES WILL JOINTLY DEVELOP MARKETING PROGRAMS FOR RETAIL AND CONSUMER MARKETS WORLDWIDE WE EXPECT THIS ALLIANCE TO HAVE A POSITIVE IMPACT ON THE CONSUMER'S ABILITY TO CHOOSE AMONG AN EVEN WIDER ARRAY OF ENTERTAINMENT AND EDUCATIONAL SOFTWARE SAID CRAIG MOODY EXECUTIVE VICE PRESIDENT OF TIME WARNER INTERACTIVE GROUP FORMERLY KNOWN AS WARNER NEW MEDIA 9306240047 930624 TECHNOLOGY COMPENSATION FIGURES OF HEALTHCARE FIRMS' CHIEFS LISTED FOR PANEL WASHINGTON AS THE NATION SEARCHES FOR WAYS TO CURB MEDICAL COSTS CHIEF EXECUTIVES OF LEADING HEALTHCARE COMPANIES ARE EARNING MILLIONS OF DOLLARS ANNUALLY AN EXECUTIVE COMPENSATION EXPERT TOLD A HOUSE PANEL GRAEF CRYSTAL EDITOR OF THE CRYSTAL REPORT ON EXECUTIVE COMPENSATION TOLD THE HOUSE SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS THAT IN 1992 THE MEDIAN COMPENSATION PACKAGE OF TOP EXECUTIVES AT 26 MAJOR HEALTHCARE COMPANIES INCLUDING HOSPITALS AND PHARMACEUTICAL COMPANIES WAS BETWEEN 25 MILLION AND 29 MILLION TOTAL DIRECT COMPENSATION WHICH INCLUDES SALARY BONUS AND THE VALUE OF STOCK OPTION GRANTS AND STOCK AWARDS RANGED FROM 696000 FOR THE CHIEF EXECUTIVE OF BEVERLY ENTERPRISES INC FORT SMITH ARK WHICH SPECIALIZES IN RETIREMENT LIVING FACILITIES AND PHARMACIES TO 88 MILLION FOR THE CHIEF EXECUTIVE OF MERCK & CO BASED IN RAHWAY NJ MR CRYSTAL SAID OBVIOUSLY THESE HUGE COSTS MUST BE BORNE BY SOMEONE EITHER BY SHAREHOLDERS IN THE FORM OF LOWER RETURNS OR BY THOSE WHO PROVIDE THE REVENUES FOR HEALTHCARE COMPANIES WHICH ALL TOO FREQUENTLY MEANS THE US GOVERNMENT AND HENCE EVERY TAXPAYER IN THE COUNTRY MR CRYSTAL SAID MR CRYSTAL WAS TESTIFYING AT A HEARING ON HOSPITAL FINANCIAL PRACTICES DURING THE HEARING GENERAL ACCOUNTING OFFICE OFFICIALS ALSO RELEASED A REPORT THAT ALLEGED HOSPITAL CORP OF AMERICA THE NATION'S LARGEST FORPROFIT HOSPITAL COMPANY CLAIMED 11 MILLION IN UNALLOWABLE QUESTIONABLE OR UNSUPPORTED EXPENSES UNDER THE FEDERAL MEDICARE PROGRAM YESTERDAY HCA OFFICIALS DEFENDED THE COMPANY'S ACTIONS NOTING THAT THE 11 MILLION WAS ONLY A FRACTION OF THE 114 MILLION EXPENSES THE COMPANY REPORTED TO MEDICARE IN 1991 9306240046 930624 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION HOLLYWOOD CASINO CORP A SHELF OFFERING OF 340752 WARRANTS TO BUY 56 MILLION CLASS A COMMON SHARES MORGAN STANLEY EMERGING MARKETS DEBT FUND INC AN INITIAL OFFERING OF FOUR MILLION COMMON SHARES VIA MORGAN STANLEY & CO STANDISH CARE CO AN OFFERING OF 700000 SHARES OF SERIES A CUMULATIVE CONVERTIBLE PREFERRED STOCK TACO CABANA INC AN OFFERING OF 25 MILLION SHARES OF ITS CLASS A COMMON STOCK 9306240045 930624 HEARD ON THE STREET SUN MICROSYSTEMS' FUTURE MAY BE HEADED FOR THE DUSK BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL SUN MICROSYSTEMS HAS OCCUPIED A BRIGHT NICHE IN THE TECHNOLOGY BUSINESS FOR A LONG WHILE AS THE MARKET LEADER IN COMPUTER WORKSTATIONS IT HAS REMAINED ABOVE THE FRAY IN THE PERSONAL COMPUTER PRICE WAR AND DESPITE DISAPPOINTING EARNINGS DURING THE PAST YEAR THE STOCK HAS MAINLY STAYED WITHIN A TRADING RANGE OF 35 TO 25 BUT ANALYSTS AND MONEY MANAGERS SAY SUN MAY BE ABOUT TO BE BOUNCED OUT OF ITS CUSHY STATION FOR THE FIRST TIME IT IS FACING STRONG COMPETITION IN HIGHPOWERED DESKTOP WORKSTATIONS FROM THE TRIO OF INTERNATIONAL BUSINESS MACHINES DIGITAL EQUIPMENT AND HEWLETTPACKARD IN THE LOW END OF THE WORKSTATION MARKET SUN IS FACED WITH A DEVELOPING SQUEEZE FROM EVERMOREPOWERFUL PERSONAL COMPUTER PRODUCTS SUCH AS MICROSOFT'S WINDOWS NT THE OPPORTUNITY THAT SUN HAS HAD FOR YEARS IS NARROWING SAYS HARLAN SONDERLING AN ANALYST AT PUTNAM COS WHO FOLLOWS TECHNOLOGY COMPANIES SUN IS STILL HIGHLY RESPECTED IN ITS INDUSTRY AND BY WALL STREET AS WITNESS THE FACT THAT ITS STOCK HASN'T FOLLOWED EARNINGS DOWNWARD DURING THE PAST FOUR QUARTERS ITS WORKSTATIONS ARE WIDELY USED BY BROKERAGE HOUSES AND OTHER CUSTOMERS WHO NEED MUSCULAR COMPUTING POWER IT HAS SHOWN INITIATIVE BY HIRING RUSSIAN SOFTWARE DESIGNERS WHO HAVE FLED FROM THE ASHES OF THE SOVIET EMPIRE AND SOME USERS FAVOR SUN WORKSTATIONS BECAUSE THEY USE THE INNOVATIVE UNIX OPERATING SYSTEM SUN ALSO BOASTS A GLISTENING BALANCE SHEET WITH LITTLE LONGTERM DEBT BUT ALL THE ADMIRATION MAY NOT SAVE SUN'S STOCK FROM A PUMMELING DURING THE NEXT SEVERAL MONTHS SOME ANALYSTS SEE A PARALLEL BETWEEN SUN AND APPLE COMPUTER WHOSE STOCK HAS TAKEN A BEATING IN RECENT WEEKS AS ITS GROSS PROFIT MARGINS HAVE COME UNDER PRESSURE SUN IS LIKELY TO BECOME JUST AS VULNERABLE TO PRICING PRESSURE AS HAS APPLE SAYS STEPHEN SMITH A TECHNOLOGY ANALYST AT PAINEWEBBER IN REMARKS CIRCULATED TO THE FIRM'S SALES STAFF LAST WEEK RUMORS HAVE BEEN FLYING LATELY THAT SUN MAY TRY TO CUT ITS EXPENSES THROUGH A RESTRUCTURING THAT COULD INCLUDE EMPLOYEE LAYOFFS A SUN SPOKESMAN SAYS THE COMPANY HAS NO SUCH PLANS BUSINESS IS UP SALES VOLUME IS STRONG AND SUN'S ENTIRE PRODUCT LINE HAS BEEN REFRESHED THE SPOKESMAN SAYS WALL STREET HOWEVER IS BRACING FOR BAD NEWS LAST WEEK MR SMITH ALONG WITH OTHER ANALYSTS LOWERED HIS EARNINGS ESTIMATES FOR SUN'S YEAR ENDING NEXT WEDNESDAY FROM 140 A SHARE TO 135 EVEN MORE IMPORTANT MR SMITH AND A GROWING CADRE OF ANALYSTS DON'T SEE ANY QUICK IMPROVEMENT THEY ARE LOWERING ESTIMATES FOR 1994 EARNINGS AS WELL FOR 1994 MR SMITH PREDICTS PERSHARE EARNINGS OF 175 DOWN FROM HIS EARLIER ESTIMATE OF 2 FOLLOWING THOSE CHANGES THE STOCK HAS DRIFTED DOWN ABOUT 14 FROM ITS CLOSING PRICE OF 32 ON JUNE 14 IT ENDED YESTERDAY AT 27 3/8 IN OVERTHECOUNTER TRADING DOWN 5/8 NOT EVERYONE IS DOWN ON THE COMPANY'S PROSPECTS LAWRENCE BOWMAN PORTFOLIO MANAGER AT FIDELITY INVESTMENT MANAGEMENT BELIEVES THE COMPANY'S GROSS PROFIT MARGINS ARE ABOUT TO RISE ALONG WITH ITS SALES OF SOME HIGHEND PRODUCTS THESE INCLUDE THE SPARCSERVER 1000 A DEVICE THAT JOINS WORKSTATIONS INTO A NETWORK AND THE SPARCCENTER 2000 WHICH SERVES A SIMILAR PURPOSE THINGS ARE GETTING BETTER HE SAYS ADDING THAT SPOT CHECKS BY FIDELITY WITH US CUSTOMERS FOUND THAT DOMESTIC ORDERS ARE STRONG FIDELITY HAS PUT ITS MONEY WHERE ITS MOUTH IS SINCE THE END OF MARCH THE MUTUALFUND GIANT HAS BOOSTED ITS HOLDINGS IN THE COMPANY TO FIVE MILLION SHARES MR BOWMAN SAYS THE MOVE TO BOOST ITS HOLDING FOLLOWED A SALE IN THE FIRST QUARTER OF 814000 SUN SHARES OR ALMOST HALF OF ITS HOLDING AT THE TIME ACCORDING TO CDA INVESTMENT TECHNOLOGIES BUT HE ADDS THAT FIDELITY COULD CHANGE ITS MIND WITH VOLATILE TECHNOLOGY STOCKS HE SAYS EVERY TIME WE GET A NEW PIECE OF INFORMATION WE HAVE TO REEVALUATE INDEED FIDELITY'S TRADES IN AND OUT OF SUN'S STOCK HAS BEEN SIMILAR TO THAT OF MANY OTHER INSTITUTIONAL INVESTORS SEVERAL LARGE MONEY MANAGEMENT FIRMS HAVE BEEN BUYING THE STOCK WHEN IT FALLS TO THE MID20 RANGE BUT THEY HAVE TENDED TO SELL WHENEVER THE SHARES CLIMB ABOVE 30 PUTNAM'S MR SONDERLING BELIEVES SUN'S STOCK PRICE MAY BREAK OUT OF THAT PATTERN SOON HOWEVER THERE IS A NEGATIVE BIAS ON THE STOCK NEGATIVE NEWS COULD MEAN THAT IT WILL BEGIN TO TREND BELOW ITS TRADING PATTERN HE SAYS SO FAR INVESTORS HAVE BEEN PATIENT THE COMPANY HAS TURNED OUT DISAPPOINTING RESULTS FOR FOUR CONSECUTIVE QUARTERS WITH EARNINGS THAT WERE NOT ONLY LOWER THAN THE PREVIOUS YEAR'S QUARTER BUT LOWER THAN WALL STREET'S CONSENSUS ESTIMATES FOR EXAMPLE THIRDQUARTER EARNINGS WERE 47 CENTS A SHARE COMPARED WITH 60 CENTS A YEAR EARLIER ANALYSTS EXPECTED 57 CENTS PART OF THE EXPLANATION ACCEPTED BY MANY INVESTORS WAS THAT THE COMPANY WAS LATE IN DELIVERING THE 40MHZ VERSION OF ITS HIGHEND MICROCHIP THAT PUT PRESSURE ON THE COMPANY'S GROSS PROFIT MARGINS FOR SEVERAL QUARTERS WHAT WE DON'T KNOW IS WHETHER THAT MISSED OPPORTUNITY WILL COST THEM THEIR GROSS MARGIN GOING FORWARD SAYS PHILIP RUEPPEL A TECHNOLOGY ANALYST WITH ALEX BROWN & SONS ALREADY HE SAYS THE DELAY IN GETTING OUT THE PRODUCT HAS FORCED THEM TO BE MORE COMPETITIVE ON PRICING PRESSURE ON THE COMPANY'S GROSS PROFIT MARGINS IS INEVITABLE MANY ANALYSTS BELIEVE WHILE GROSS MARGINS AT APPLE HAVE FALLEN TO ABOUT 38 IN THE MOST RECENT QUARTER FROM 48 IN 1991 MARGINS AT SUN HAVE BARELY SLIPPED TO 402 LAST QUARTER FROM THE MID 40S WITH HEWLETTPACKARD IBM AND DIGITAL EQUIPMENT COMPETING FOR WORKSTATION BUSINESS THE COMPANY MAY HAVE NO ALTERNATIVE BUT TO DEFEND ITS MARKET SHARE AND TRIM PRICES THE COMPETITION IS BECOMING MORE CREDIBLE AND THEY'RE GOING HEAD TO HEAD WITH SUN SAYS MR SONDERLING MR SMITH SAYS SUN'S MICROPROCESSOR SPARC IS BEHIND THAT OF HEWLETTPACKARD AND DIGITAL EQUIPMENT IN SOME IMPORTANT PERFORMANCE MEASUREMENTS AND SUN'S LEAD IN OTHER CATEGORIES IS SHRINKING OFF IN THE DISTANCE ANALYSTS HEAR THE OMINOUS FOOTSTEPS OF MICROSOFT APPROACHING SUN'S MARKET EVENTUALLY ANALYSTS EXPECT MICROSOFT TO DEVELOP WORKSTATION APPLICATIONS FOR ITS WINDOWS NT NO ONE EXPECTS THIS THREAT TO MATERIALIZE OVERNIGHT IT WILL PROBABLY TAKE ONE OR TWO YEARS FOR MICROSOFT TO DEVELOP THE DISTRIBUTION SYSTEM TO COMPETE IN THE WORKSTATION MARKET ANALYSTS SAY BUT WHEN MICROSOFT DOES GET UP TO SPEED SUN HAD BETTER HAVE A GOOD COUNTERSTRATEGY BY MID1994 SOME ESTIMATE THAT PENTIUMBASED PCS RUNNING PROGRAMS LIKE WINDOWS NT WILL SELL FOR UNDER 3000 THAT'S A LONG WAY DOWN FROM THE CURRENT PRICE OF AROUND 15000 FOR SOME HIGHEND SUN WORKSTATIONS 9306240044 930624 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 5 HIGH 3 LOW 3 1/2 NEAR CLOSING BID 3 3/4 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 59 DAYS 317 60 TO 119 DAYS 323 120 TO 149 DAYS 325 150 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 322 30 DAYS 324 60 DAYS 327 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 270 TWO MONTHS 274 THREE MONTHS 289 SIX MONTHS 315 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 313 ONE MONTH 317 THREE MONTHS 333 SIX MONTHS BANKERS ACCEPTANCES 310 30 DAYS 311 60 DAYS 314 90 DAYS 320 120 DAYS 325 150 DAYS 327 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 SIX MONTHS 3 7/8 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 21 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 310 13 WEEKS 319 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 706 60 DAYS 713 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 709 60 DAYS 719 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306240043 930624 ECONOMY DURABLEGOODS ORDERS TUMBLED AGAIN IN MAY MANUFACTURING STILL WEAK WHITE HOUSE MAY TRIM FORECAST ON ECONOMY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ORDERS FOR BIG TICKET FACTORY ITEMS TUMBLED IN MAY FOR THE THIRD STRAIGHT MONTH ANOTHER SIGN THAT THE MANUFACTURING SECTOR REMAINS WEAK AND THAT FACTORIES AREN'T LIKELY TO ADD WORKERS ANY TIME SOON THE COMMERCE DEPARTMENT SAID ORDERS FOR DURABLE GOODS THOSE EXPECTED TO LAST THREE YEARS OR MORE DROPPED 16 LAST MONTH AFTER FALLING 02 IN APRIL AND 34 IN MARCH AFTER A STRONG PERFORMANCE AT THE END OF LAST YEAR THE MANUFACTURING SECTOR PETERED OUT IN THE FIRST QUARTER AND DOESN'T YET SEEM TO BE GAINING ANY REAL MOMENTUM THIS IS NOT A COLLAPSE BUT THERE IS NO SIGN OF GROWTH IN THE MANUFACTURING SECTOR SAID SAMUEL KAHAN CHIEF ECONOMIST FOR FUJI SECURITIES IN CHICAGO WHAT'S MORE THE BACKLOG OF UNFILLED ORDERS ALSO DROPPED IN MAY FOR THE THIRD STRAIGHT MONTH IT NOW STANDS AT ITS LOWEST LEVEL SINCE NOVEMBER 1988 THAT SUGGESTS FACTORIES ARE MEETING DEMAND WITH THEIR CURRENT WORK FORCE AND DON'T NEED TO ADD MORE EMPLOYEES MANUFACTURING EMPLOYMENT CURRENTLY IS AT A 28YEAR LOW ACCORDING TO THE LABOR DEPARTMENT LAURA D'ANDREA TYSON WHO HEADS THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAID THE COMMERCE DEPARTMENT REPORT INDICATES THAT BUSINESS INVESTMENT SPENDING ONE OF THE STRONGEST SECTORS OF THE ECONOMY IN THE FIRST QUARTER WON'T BE AS BUOYANT IN THE SECOND QUARTER MS TYSON SAID SHE EXPECTS THE ADMINISTRATION TO MARK DOWN ITS FORECAST FOR ECONOMIC GROWTH THIS YEAR AS PART OF THE ANNUAL SUMMER REVIEW OF ECONOMIC PROJECTIONS AT THE BEGINNING OF THE YEAR THE WHITE HOUSE EXPECTED THE ECONOMY TO GROW 31 BETWEEN THE FOURTH QUARTERS OF 1992 AND 1993 THE FAILURE OF CONGRESS TO ENACT THE PRESIDENT'S ECONOMIC STIMULUS WILL SHAVE ABOUT 03 PERCENTAGE POINT OFF THE FORECAST GIVEN THE WEAKNESS OF THE FIRST QUARTER THE NEW FORECAST IS LIKELY TO PROJECT GROWTH THIS YEAR OF BETWEEN 25 AND 28 SHE INDICATED THE BOTTOM LINE IS SLOW GROWTH BUT CONTINUED GROWTH SHE SAID THE ECONOMY COULD PICK UP IN THE SECOND HALF AS THE BENEFICIAL EFFORTS OF LOWER LONGTERM INTEREST RATES WORK THEIR WAY INTO THE ECONOMY SHE SAID SOME ANALYSTS SEE HOPE ON THE MANUFACTURING HORIZON RECENT STRENGTH IN HOUSING AND AUTO SALES SUGGESTS THAT THE INDUSTRIAL ECONOMY IS POISED FOR GROWTH SAID EDWARD YARDENI ECONOMIST FOR CJ LAWRENCE IN NEW YORK ALSO A FEDERAL RESERVE SURVEY OF ECONOMIC CONDITIONS FOUND THAT MANUFACTURING ACTIVITY WAS HOLDING STEADY OR IMPROVING IN MOST DISTRICTS DURING MAY AND EARLY JUNE SEPARATELY THE COMMERCE DEPARTMENT SAID THE ECONOMY GREW AT A TINY 07 ANNUAL RATE IN THE FIRST QUARTER AFTER A 47 GROWTH RATE IN THE LAST QUARTER OF 1992 THE GOVERNMENT'S PREVIOUS ESTIMATE FOR FIRSTQUARTER GROWTH WAS 09 THE DEPARTMENT EXPLAINED THE DOWNWARD REVISION BY SAYING THAT GROWTH IN CONSUMER SPENDING AND BUSINESS INVENTORIES WAS SLOWER THAN PREVIOUSLY THOUGHT AND THAT THE US TRADE DEFICIT WAS WIDER CORPORATE AFTERTAX PROFITS ROSE 45 IN THE FIRST QUARTER AFTER CLIMBING 85 IN THE PREVIOUS QUARTER IN THE DURABLEGOODS SECTOR DEMAND FOR TRANSPORTATION PRODUCTS DROPPED 24 IN MAY DEFENSE INDUSTRY ORDERS TUMBLED 132 EXCLUDING DEFENSE TOTAL DURABLEGOODS ORDERS WERE DOWN 1 ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE COMMERCE DEPARTMENT'S LATEST FIGURES ON NEW ORDERS FOR DURABLE GOODS SEASONALLY ADJUSTED IN BILLIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS IN THE FIRST QUARTER THE IMPLICIT PRICE DEFLATOR ROSE TO 1188 FROM 1179 IN THE PREVIOUS QUARTER 9306240042 930624 WHAT'S NEWS WORLDWIDE THE SPACE STATION SURVIVED BY A ONEVOTE MARGIN IN THE HOUSE VOTING 216215 HOUSE MEMBERS REJECTED AN ATTEMPT BY SOME LAWMAKERS TO KILL NASA'S STILLUNBUILT ORBITING LABORATORY IT WAS THE CLOSEST THE HOUSE HAS COME TO SCUTTLING THE SPACE STATION WHICH ALREADY HAS COST MORE THAN 9 BILLION HOUSE OPPONENTS RIDICULED THE PROJECT AS THIS FLYING TURKEY WHILE SUPPORTERS COMPARED IT TO THE WRIGHT BROTHERS' PLANE AND COLUMBUS'S SHIPS THE PROGRAM'S FATE IS STILL UNCERTAIN THE BATTLE COULD BE REFOUGHT AS EARLY AS MONDAY WHEN THE HOUSE IS EXPECTED TO TAKE UP A BILL THAT WOULD APPROPRIATE NEXT YEAR'S ALLOTMENT FOR THE STATION OUSTED HAITIAN PRESIDENT ARISTIDE SET CONDITIONS FOR TALKS WITH THE COUNTRY'S MILITARY RULER SAYING ANY MEETING WITH GEN CEDRAS WOULD HAVE TO FOCUS ON ARISTIDE'S SPEEDY RETURN TO POWER MEANWHILE HAITIANS WERE COPING WITH THE FIRST DAY OF A GLOBAL OIL AND ARMS EMBARGO SERBIA AND CROATIA PRESENTED PROPOSALS FOR DIVIDING UP BOSNIA BUT GAVE FEW FIRM DETAILS ON SEPARATING THE THREE WARRING FACTIONS AT A MEETING IN GENEVA PROPOSED PARTITION MAPS WERE PRESENTED TO MEDIATORS BUT THE BOUNDARIES WERE VAGUE CLINTON'S HEALTH PLAN COULD BE READY NEXT WEEK IF CONGRESS FINISHES WITH THE BUDGET PLAN BY THEN HILLARY RODHAM CLINTON SAID SHE WAS RESPONDING TO QUESTIONS FROM REPORTERS ABOUT SPECULATION THAT THE PLAN WOULDN'T BE UNVEILED UNTIL SEPTEMBER A BASE CLOSING COMMISSION VOTED TO SPARE FACILITIES IN ALABAMA AND GEORGIA AND PRESERVE THE ARMY'S PRESENCE AT THE PRESIDIO IN SAN FRANCISCO AS IT BEGAN WEIGHING THE FATE OF DOZENS OF MILITARY INSTALLATIONS CANADA'S SENATE APPROVED THE NORTH AMERICAN FREE TRADE AGREEMENT BY A 4730 VOTE AS THE PACT CLEARED ITS FINAL CANADIAN LEGISLATIVE HURDLE THE TRADE ACCORD STILL NEEDS TO BE SANCTIONED BY LAWMAKERS IN BOTH THE US AND MEXICO JAPAN'S NEWEST POLITICAL PARTY HELD ITS INAUGURAL NEWS CONFERENCE DECLARING IT WANTS TO BUILD A NEW JAPAN THE 44 LAWMAKERS WHO DEFECTED FROM THE GOVERNING PARTY SAID THAT THEIR NEW PROREFORM GROUP LED BY FORMER FINANCE MINISTER HATA WOULD BE WILLING TO UNITE WITH LEFTISTS IN A COALITION GOVERNMENT US SCIENTISTS ARE TAKING ANOTHER LOOK AT WHETHER THOUSANDS OF US TROOPS WERE HARMED BY BEING TOO CLOSE TO ATOMIC EXPLOSIONS IN THE 1950S THE FIVEYEAR STUDY WILL REPLACE ONE RELEASED EIGHT YEARS AGO THAT WAS INCONCLUSIVE THE INSTITUTE OF MEDICINE WILL OVERSEE THE NEW RESEARCH THE UN OFFERED A REWARD FOR INFORMATION LEADING TO THE CAPTURE OF SOMALI CLAN LEADER AIDID A DAY AFTER HE APPEARED ON BROADCAST INTERVIEWS AND DARED PEACEKEEPERS TO TRY TO ARREST HIM TWO SOUTH AFRICAN BLACK LEADERS MET FOR THE FIRST TIME IN MORE THAN TWO YEARS AND ISSUED A STATEMENT REAFFIRMING THEIR COMMITMENT TO ENDING VIOLENCE HOWEVER AFRICAN NATIONAL CONGRESS PRESIDENT MANDELA FAILED TO GAIN ZULU LEADER BUTHELEZI'S APPROVAL FOR A TENTATIVE DATE OF APRIL 27 1994 FOR THE COUNTRY'S FIRST MULTIRACIAL ELECTIONS THE STATE DEPARTMENT SAID IT IS REASSESSING ALL ASPECTS OF ITS RELATIONSHIP WITH NIGERIA INCLUDING 228 MILLION IN US AID AFTER THE MILITARY REGIME REFUSED TO ACCEPT THE RESULTS OF A PRESIDENTIAL ELECTION EARLIER YESTERDAY NIGERIA'S MILITARY RULERS ANNULLED THE RESULTS OF THE JUNE 12 VOTE THE LOS ANGELES CITY COUNCIL PASSED A SMOKING BAN FOR THE CITY'S NEARLY 7000 RESTAURANTS THE BAN WHICH DOESN'T COVER BARS AND OUTDOOR DINING AREAS IS TO GO INTO EFFECT AFTER MAYOR BRADLEY SIGNS IT A HOUSE PANEL CHAIRMAN SAID HE WILL SEEK A MODEST RELAXATION OF MEDICAID RESTRICTIONS TO ALLOW FEDERAL FUNDING OF ABORTIONS FOR POOR WOMEN IN CASES OF RAPE AND INCEST THE COMMENTS BY WILLIAM NATCHER HEAD OF THE APPROPRIATIONS COMMITTEE FOLLOWED A MEETING WITH DONNA SHALALA HEALTH AND HUMAN SERVICES SECRETARY ISRAELI AND PALESTINIAN ECONOMISTS GAVE RECOMMENDATIONS FOR THE ECONOMIC TRANSITION TOWARD AUTONOMY FOR THE OCCUPIED WEST BANK AND GAZA STRIP THE ECONOMISTS CONCLUDED THAT ISRAEL MUST LIFT RESTRICTIONS ON PALESTINIAN GOODS ENTERING ISRAEL EVEN FOR FARM PRODUCTS 9306240040 930624 CREDIT MARKETS PUERTO RICO SELLS 961 MILLION OF MUNICIPAL BONDS INCLUDING 122 MILLION OF DESIGNER' SECURITIES BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PUERTO RICO SOLD A NEW KIND OF MUNICIPAL BOND YESTERDAY THAT INVESTORS CAN BUY OR TRADE IN BITS AND PIECES AS PART OF A WELLRECEIVED 961 MILLION OFFERING OF GENERAL OBLIGATION MUNICIPAL REFUNDING BONDS PUERTO RICO SOLD ABOUT 126 MILLION OF SOCALLED BOND PAYMENT OBLIGATIONS OR BPOS THE OFFERING WAS THE LARGEST OF A 2 BILLION SLATE OF NEW MUNICIPAL BONDS SOLD YESTERDAY BOND PAYMENT OBLIGATIONS CAN BE BROKEN DOWN INTO SEPARATE PREPACKAGED PARTS AT THE WILL OF THE INVESTOR AND DISTRIBUTED INTO DIFFERENT PORTFOLIOS OR EVEN SOLD TO OTHER INVESTORS EACH OF THE PARTS COMES WITH ITS OWN REGISTRATION NUMBER TO MAKE TRADING EASIER THE BPO BOND IS THE ULTIMATE DESIGNER SECURITY SAID GARY GRAY A SENIOR VICE PRESIDENT AT LEHMAN BROTHERS THE OFFERING'S LEAD UNDERWRITER BUT SUCH FLEXIBILITY COMES AT A PRICE INVESTORS RECEIVE YIELDS AS MUCH AS 010 PERCENTAGE POINT LOWER THAN SIMILARLY RATED PLAINVANILLA BONDS IF THEY CHOOSE NOT TO BREAK THE BPOS INTO SEPARATE PARTS MANY OF WHICH WOULD BE RISKIER THAN REGULAR BONDS THE BPOS WERE SOLD IN MATURITIES OF 15 16 AND 17 YEARS WITH YIELDS RANGING FROM 550 TO 560 CERTAIN PARTS OF THE BPOS WHEN SEPARATED WOULD HAVE SIGNIFICANTLY HIGHER OR LOWER YIELDS DEPENDING ON THE DIRECTION OF SHORTTERM INTEREST RATES AMONG OTHER FACTORS THE PLAINVANILLA FIXEDRATE BONDS SOLD BY PUERTO RICO MATURING IN 14 YEARS BY COMPARISON YIELDED 555 005 PERCENTAGE POINT MORE THAN THE 15YEAR BPO BONDS FURTHERMORE SOME OF THE BONDS COULD PAY MUCH LESS OR MUCH MORE THAN REGULAR BONDS DEPENDING ON THE DIRECTION OF INTEREST RATES INDEED THE OFFERING HAD BEEN POSTPONED IN APRIL DUE TO RISING INTEREST RATES AS AN INFLATION SCARE RUSHED THROUGH THE BOND MARKET BUT WITH INTEREST RATES MOVING LOWER AGAIN LEHMAN AND PUERTO RICO DECIDED THAT YESTERDAY WAS TIME TO COME TO MARKET ELSEWHERE THE YIELD OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED TO 676 FROM 677 ON TUESDAY THE PRICE WHICH MOVES IN THE OPPOSITE DIRECTION OF THE YIELD ROSE LESS THAN 1/4 POINT OR LESS THAN 250 FOR A BOND WITH 1000 FACE VALUE TO 104 20/32 THE 10YEAR NOTE YIELDED 588 LATE YESTERDAY DOWN FROM 589 WHILE ITS PRICE ROSE LESS THAN 1/8 POINT TO 102 20/32 A HANDFUL OF LARGE MUTUAL FUND COMPANIES SNAPPED UP THE BPOS AND MANY OF THE PLAINVANILLA BONDS ACCORDING TO LEHMAN OFFICIALS PART OF THE REASON FOR SUCH STRONG DEMAND IS THAT INTEREST PAYMENTS FROM PUERTO RICO'S SECURITIES ARE EXEMPT FROM FEDERAL STATE AND LOCAL TAXES INDEED DEMAND WAS SO STRONG THAT THE OFFERING WAS INCREASED FROM AN ANTICIPATED 700 MILLION THE BONDS ARE RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP IT WASN'T THE FIRST TIME LEHMAN HAS SOLD BPOS BUT IT IS THE LARGEST OFFERING OF ITS TYPE EVER EARLIER THIS YEAR LEHMAN SOLD ABOUT 60 MILLION OF BPOS FOR THE PUERTO RICO TELEPHONE AGENCY AND THE PENNSYLVANIA HOUSING FINANCE AGENCY ALL OF THESE OFFERINGS ARE PART OF A PROGRAM BY LEHMAN TO SELL MORE EXOTIC MUNICIPAL BONDS TO SOPHISTICATED INVESTORS THE PROGRAM APPROPRIATELY CALLED STRIPS AND PIECES IS DESCRIBED IN A BROCHURE WHICH SPEAKS OF BULL FLOATERS AND BEAR FLOATERS AMONG OTHER CREATURES ACCORDING TO LEHMAN OFFICIALS THE BPOS WERE DESIGNED FOR INVESTORS LOOKING TO BOOST YIELDS AND PLUG HOLES IN THEIR PORTFOLIOS LEFT BY BONDS THAT WERE CALLED AWAY AS INTEREST RATES DROPPED THEY WERE ALSO DESIGNED FOR INVESTORS HOPING TO HEDGE AGAINST OTHER VOLATILE BONDS SOME OF THE PIECES GIVE THE INVESTOR THE RIGHT TO CLAIM A CERTAIN COUPON OR PRINCIPAL PAYMENT AT SOME DATE IN THE FUTURE OTHERS ARE THE POPULAR INVERSEFLOATERS CALLED BULL FLOATERS IN THE BROCHURE WHICH PAY MORE THAN PLAINVANILLA BONDS WHEN SHORTTERM INTEREST RATES FALL AND LESS WHEN THEY RISE ON THE OTHER HAND THE BEAR FLOATERS PAY MORE THAN PLAINVANILLA BONDS WHEN SHORTTERM RATES RISE AND LESS WHEN THEY FALL AFTER FIVE YEARS BOTH BULL AND BEAR FLOATERS CONVERT TO FIXEDRATE SECURITIES THE BEAR FLOATERS WOULD THEN HAVE A FIXED RATE OF 55 WHILE THE BULL FLOATERS WOULD YIELD 35 OR 15 DEPENDING ON WHICH BPO PACKAGE THEY ARE SEPARATED FROM THE BONDS SOLD YESTERDAY COULD BE PURCHASED IN DENOMINATIONS OF 5000 IF BOUGHT IN WHOLE PARTS AS MORE THAN HALF OF THEM WERE ACCORDING TO MR GRAY DESPITE THE LOW DENOMINATIONS LEHMAN ISN'T ACTIVELY MARKETING THE BPOS TO INDIVIDUAL INVESTORS MR GRAY SAID BUT SOME OF THE BITS AND PIECES LIKE INVERSE FLOATERS FOR EXAMPLE WOULDN'T BE SUCH A BAD IDEA FOR INDIVIDUALS INTERESTED IN HOLDING THEM UNTIL MATURITY HE ADDED THAT IDEA HAS BEEN A TOPIC OF DEBATE A MONEY MANAGER AT A SISTER UNIT OF LEHMAN BROTHERS RECENTLY TURNED DOWN THE OPPORTUNITY TO LAUNCH A MUTUAL FUND FOR INDIVIDUAL INVESTORS WHICH WAS TO BE LOADED WITH INVERSE FLOATERS HE SAID IT WAS NOT THE TIME TO BUY BONDS LIKE INVERSE FLOATERS WHICH ARE ESSENTIALLY A LEVERAGED BET FOR EVEN LOWER INTEREST RATES SPECULATION ABOUT THE ODDS THAT THE FEDERAL RESERVE WILL RAISE INTEREST RATES COUPLED WITH NEW SUPPLY LEFT SHORTTERM US TREASURY ISSUES WITH SMALL LOSSES LONGERTERM MATURITIES EKED OUT MODEST GAINS THE 30YEAR BOND ROSE LESS THAN 1/4 POINT BUT THE TWOYEAR NOTE DROPPED LESS THAN 1/8 POINT TO 99 27/32 TO YIELD 419 UP FROM 411 ON TUESDAY TREASURY ISSUES SOLD OFF SHARPLY IN OVERNIGHT TRADING PARTLY IN RESPONSE TO A NEW YORK TIMES ARTICLE SUGGESTING THAT THE FED COULD HAVE TO RAISE INTEREST RATES THIS SUMMER AS A PREEMPTIVE STRIKE AGAINST NASCENT INFLATION PRESSURES BUT THE MARKET WAS ABLE TO TRIM SOME OF ITS LOSSES ESPECIALLY AT THE LONG END AS BUYERS WERE ENCOURAGED BY ECONOMIC DATA ONCE TRADING IN THE US GOT UNDER WAY THE COMMERCE DEPARTMENT REVISED FIRSTQUARTER GROSS DOMESTIC PRODUCT GROWTH DOWN TO A 07 RATE FROM 09 AND MAY DURABLE GOODS ORDERS POSTED AN UNEXPECTED DECLINE OF 16 WHILE THE DATA HELPED DISPEL SOME OF THE CLOUD OVER THE MARKET FROM THE TIMES STORY THE MARKET WAS UNABLE TO GENERATE MUCH MOMENTUM AND IT DRIFTED FOR MOST OF THE SESSION EVEN THE TREASURY'S 11 BILLION FIVEYEAR NOTE AUCTION FAILED TO PRODUCE ANY FIREWORKS THE FIVE YEAR WENT WELL ENOUGH NO REAL PROBLEMS SAID JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC THE TREASURY AWARDED THE FIVEYEAR NOTE OFFERING AT A YIELD OF 523 GENERALLY IN LINE WITH WALL STREET EXPECTATIONS BEFORE THE AUCTION DEADLINE DEALERS HAD BOOSTED THE YIELD ON THE FIVEYEAR NOTE FROM 518 LATE TUESDAY IN AN ATTEMPT TO LURE IN BUYERS BY LATE IN THE SESSION FOLLOWTHROUGH BUYING PUSHED THE YIELD ON THE WHENISSUED FIVEYEAR NOTE DOWN TO 519 HERE ARE DETAILS OF THE TREASURY AUCTION THE NOTES ARE DATED JUNE 30 AND MATURE JUNE 30 1998 THE FEW DEBT ISSUERS TO VENTURE ONTO WALL STREET YESTERDAY WERE WARMLY GREETED WITH TWO OFFERINGS SNAPPED UP BEFORE LEAD UNDERWRITERS HAD A CHANCE TO SHOP THEM AROUND A 200 MILLION SEVENYEAR SENIOR NOTE OFFERING BY MCDONNELL DOUGLAS CORP WAS SPOKEN FOR BY THE TIME IT HIT DEALERS' SCREENS EARLIER AIR PRODUCTS & CHEMICALS INC'S 100 MILLION ISSUE OF 10YEAR NOTES HIT THE SCREENS AS SOLD OUT IN ADDITION TWO BANK OF NEW YORK CO UNITS BANK OF NEW YORK DELAWARE AND TRUST CO BANK ATLANTA EACH PRICED DEALS LATE IN THE SESSION BANK OF NEW YORK DELAWARE PRICED 400 MILLION OF BANK NOTES TO YIELD 362 WHILE TRUST CO BANK ATLANTA PRICED 100 MILLION OF BANK NOTES ALSO TO YIELD 362 ACTIVITY IN THE SECONDARY INVESTMENTGRADE MARKET WAS MUTED WITH A SLIGHT DOWNWARD BIAS AT THE SHORTTERM END AND SMALL GAINS FURTHER OUT A HIGHYIELD TRADER SAID TRADING IN SEASONED JUNK BONDS ALSO WAS QUIET WITH LITTLE CHANGE IN PRICES MORTGAGEBACKED SECURITIES MOVED LOWER IN CONTINUED LIGHT TRADING THREE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEALS WERE ANNOUNCED TOTALING JUST OVER 800 MILLION AMONG PRICES IN THE SECONDARY MARKET GOVERNMENT NATIONAL MORTGAGE ASSOCIATION'S 7 ISSUE FOR JULY DELIVERY WAS DOWN 1/32 IN LATE TRADING AT 101 15/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7S AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7S FOR JULY DELIVERY WERE BOTH DOWN 5/32 AT 101 12/32 AND 101 7/32 RESPECTIVELY ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THOMAS D LAURICELLA AND CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9306240039 930624 TECHNOLOGY & SCIENCE SPACE STATION NARROWLY SURVIVES HOUSE VOTE AS SUPPORT DWINDLES BY BARBARA ROSEWICZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A SIGN THAT THE SPACE STATION IS IN JEOPARDY THE HOUSE BY A SINGLE VOTE SAVED THE STILLUNBUILT ORBITING LABORATORY FROM SUDDEN DEATH BY A 216215 VOTE THE HOUSE BARELY REJECTED AN ATTEMPT BY DEFICITCONSCIOUS LAWMAKERS TO SCRAP THE MULTIBILLIONDOLLAR PROJECT IT IS THE CLOSEST BRUSH WITH DEATH YET FOR THE SPACE STATION WHICH IN PREVIOUS YEARS HAS SURVIVED ATTEMPTS TO CANCEL IT BY MARGINS OF 57 VOTES OR MORE YESTERDAY'S NARROW VICTORY RAISES SERIOUS QUESTIONS ABOUT CONGRESS' SUPPORT FOR CONTINUING TO BUILD THE OUTPOST IN SPACE THE US ALREADY HAS SPENT MORE THAN 9 BILLION ON THE PROJECT BUT THE VOTE WHICH CAME ON A BILL AUTHORIZING PROGRAMS FOR THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION ISN'T THE FINAL WORD FROM CONGRESS IN FACT IT SETS THE STAGE FOR THE BATTLE TO BE REFOUGHT AS EARLY AS MONDAY WHEN THE HOUSE IS EXPECTED TO TAKE UP A NASA SPENDING BILL THAT WOULD APPROPRIATE NEXT YEAR'S ALLOTMENT OF MONEY TO BUILD THE STATION IT SHOWS A DISTINCT EROSION OF SUPPORT AND THAT'S NOT A GOOD SIGN CONCEDED REP GEORGE BROWN JR D CALIF HOUSE SCIENCE COMMITTEE CHAIRMAN AND A LEADING SPACESTATION SUPPORTER REPS TIM ROEMER D IND AND DICK ZIMMER R NJ WHO OFFERED THE AMENDMENT TO TERMINATE FUNDS FOR THE SPACE STATION SAID THE HOUSE'S 114 FRESHMEN MEMBERS THIS YEAR WERE A KEY FACTOR IN THE HOUSE'S SOURING ON THE SPACE STATION OF 112 FRESHMEN WHO VOTED 63 VOTED TO KILL THE SPACE STATION AND 49 VOTED TO SAVE IT IT WOULD BE VERY DIFFICULT FOR FRESHMEN TO GO BACK TO THEIR DISTRICTS AND SAY THEY'RE SERIOUSLY FOR DEFICIT REDUCTION AND VOTE TO CONTINUE SUCH A HIGHLY VISIBLE PROJECT OF SUCH DUBIOUS MERIT MR ZIMMER SAID AFTER THE VOTE BESIDES THE BUDGET DEFICIT THE SPACE STATION IS IN PERIL BECAUSE OF RECENT COST OVERRUNS AND UNCERTAINTIES RAISED BY PRESIDENT CLINTON'S ORDERS TO REDESIGN THE SPACE STATION TO SAVE MONEY IN THE FACE OF ESTIMATES THAT BUILDING AND OPERATING THE SPACE STATION INTO THE NEXT CENTURY WOULD COST MORE THAN 100 BILLION MR CLINTON EARLY THIS YEAR DECIDED THE BEST WAY TO SAVE THE PROJECT WAS TO SCALE IT DOWN LAST WEEK HE TOLD NASA TO DRAW UP BLUEPRINTS FOR A SLIGHTLY SMALLER MODEL THAT WOULD COST 16 BILLION TO COMPLETE 9 BILLION LESS THAN THE PREVIOUS DESIGN BUT DOWNSCALING THE STATION WHICH WAS LAUNCHED UNDER THE REAGAN ADMINISTRATION IN 1984 MADE IT POLITICALLY EASIER FOR SOME PAST GOP SUPPORTERS TO DEFECT AT LEAST FOUR REPUBLICANS WHO VOTED TWICE LAST YEAR AGAINST KILLING THE SPACE STATION SWITCHED THIS TIME VOTING TO CANCEL IT STILL JUST AS LAST YEAR MORE REPUBLICANS THAN DEMOCRATS IN THE DEMOCRATCONTROLLED HOUSE VOTED TO SAVE THE SPACE STATION WHITE HOUSE SCIENCE ADVISER JACK GIBBONS THROUGH A SPOKESMAN PREDICTED THE NEWLY REDESIGNED STATION WILL GRADUALLY GAIN BACKERS THE VOTE CLEARLY REFLECTED CURRENT CONCERNS OVER THE BUDGET CONCERNS THAT THE PRESIDENT SHARES HE SAID THAT'S WHY THE PRESIDENT ORDERED THE REDESIGN TO CUT COSTS AND IMPROVE MANAGEMENT WITHOUT THESE COST CUTS IT'S LIKELY THAT THE PROJECT WOULD HAVE BEEN ELIMINATED COMPLETELY THOUGH THE OUTCOME IN THE HOUSE WAS DECIDED BY A ONEVOTE MARGIN SUPPORTERS MAY ACTUALLY HAVE A FIVEVOTE MARGIN OF SUPPORT FOUR DELEGATES FROM AREAS SUCH AS THE DISTRICT OF COLUMBIA THAT DON'T HAVE FULL REPRESENTATION VOTED TO KILL THE SPACE STATION YESTERDAY BUT UNDER HOUSE RULES THEY COULD BE EXCLUDED FROM THE NEXT SPACESTATION VOTE IF THEIR TALLIES WOULD SWING THE DECISION IN ADDITION EIGHT HOUSE MEMBERS DIDN'T VOTE STILL THE NARROW WIN IS CERTAIN TO RAISE ANXIETIES AMONG SPACESTATION SUPPORTERS INCLUDING MR CLINTON AND COMPANIES SUCH AS MCDONNELL DOUGLAS CORP ROCKWELL INTERNATIONAL CORP LOCKHEED CORP AND BOEING CO THAT HAVE BILLIONS OF DOLLARS IN CONTRACTS AND THOUSANDS OF JOBS AT STAKE 9306240038 930624 BUSINESS BRIEF GLENFED INC THRIFT REGULATORS APPROVE PLAN FOR CAPITAL RESTORATION GLENDALE FEDERAL BANK A UNIT OF GLENFED INC SAID THE OFFICE OF THRIFT SUPERVISION APPROVED THE INSTITUTION'S CAPITALRESTORATION PLAN AND PUSHED BACK A JUNE 30 DEADLINE FOR RECAPITALIZATION THE DEADLINE EXTENDS TO AUG 31 AN OTS MANDATE TO COMPLETE TRANSACTIONS NECESSARY TO BOLSTER THE GLENDALE CALIF BANK'S STANDINGS IN TWO ASSET CATEGORIES BY IMPROVING CORE CAPITAL TO 5 AND RISKBASED CAPITAL TO 10 THE TRANSACTIONS PLANNED INCLUDE A MERGER OF GLENFED INTO A SUBSIDIARY OF GLENDALE FEDERAL AN EXCHANGE OFFER OF STOCK AND STOCK PURCHASE RIGHTS FOR GLENFED DEBT A RECLASSIFICATION OF PREFERRED STOCK A RIGHTS OFFERING AND AN OFFERING OF PREFERRED STOCK TO INSTITUTIONAL INVESTORS 9306240037 930624 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 AIR PRODUCTS & CHEMICALS INC 100 MILLION OF NOTES DUE JUNE 15 2003 PRICED AS 625S AT 99135 TO YIELD 6368 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 48 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 LEHMAN BROTHERS BANK OF NEW YORK DEL 400 MILLION OF NOTES DUE JUNE 30 1994 PRICED AS 36S AT AN INITIAL PRICE OF 9998 TO YIELD 362 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 10 BASIS POINTS ABOVE TREASURYS RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO THE ISSUER IS A UNIT OF BANK OF NEW YORK CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 2 BILLION OF MEDIUMTERM NOTES DUE JUNE 30 1994 PRICED AS 35S AT AN INITIAL PRICE OF 99931 TO YIELD 357 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF ONE BASIS POINT ABOVE TREASURYS THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF STEPUP NOTES DUE JULY 7 1998 INITIALLY OFFERED AT A 48 COUPON AFTER TWO YEARS THE COUPON STEPS UP TO 59 AT PAR ACCORDING TO MCM CORPORATEWATCH THE NOTES NONCALLABLE FOR TWO YEARS WERE INITIALLY PRICED AT A SPREAD OF 60 BASIS POINTS OVER THE TREASURY TWOYEAR NOTE AFTER TWO YEARS THEY WILL RESET TO 24 BASIS POINTS OVER THE TREASURY FIVEYEAR NOTE THE ISSUE WILL BE SOLD THROUGH LEHMAN BROTHERS FLORIDA POWER & LIGHT CO 230 MILLION OF FIRST MORTGAGE BONDS DUE JULY 1 1999 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY MERRILL LYNCH & CO IT WAS REOFFERED AS 55S AT 9875 TO YIELD 575 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 55 BASIS POINTS OVER THE FIVEYEAR TREASURY NOTE THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P FLORIDA P&L IS A UNIT OF FPL GROUP INC HOMESTAKE MINING CO 150 MILLION OF 55 CONVERTIBLE SUBORDINATED NOTES SOLD THE NOTES DUE JUNE 23 2000 ARE CONVERTIBLE INTO HOMESTOCK COMMON SHARES AT A RATE OF 4336 SHARES PER 1000 PRINCIPAL OF NOTES OR A RATE OF 2306 A SHARE NOTES WERE SOLD PRIMARILY IN OFFSHORE TRANSACTIONS WITH A PORTION OFFERED PRIVATELY TO INSTITUTIONAL INVESTORS IN THE US PROCEEDS WILL BE USED TO RETIRE DEBT AND REDEEM PREFERRED STOCK OF A CANADIAN SUBSIDIARY MCDONNELL DOUGLAS CORP 200 MILLION OF SENIOR NOTES DUE JULY 1 2000 PRICED AS 825S AT PAR ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 269 BASIS POINTS ABOVE TREASURYS RATED BA2 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TRUST CO BANK 100 MILLION OF BANK NOTES DUE JUNE 30 1994 PRICED AS 36S AT AN INITIAL PRICE OF 9998 TO YIELD 362 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 10 BASIS POINTS ABOVE TREASURYS RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO TRUST CO BANK IS A UNIT OF SUNTRUST BANKS INC AAMES FINANCIAL CORP 15 MILLION COMMON SHARES AT 950 APIECE THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO MEGAHERTZ CORP FOUR MILLION COMMON SHARES AT 1350 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS MMI COS INITIAL OFFERING OF 2650000 COMMON SHARES AT 1350 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS & UPHAM & CO CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY 2063 MILLION CERTIFICATES OF PARTICIPATION PRICED BY A MORGAN STANLEY & CO GROUP INCLUDED IN THE OFFERING ARE 1506 MILLION CURRENTINTEREST CERTIFICATES WHICH ARE PRICED TO YIELD FROM 275 IN 1994 TO 58 IN 2023 THERE ARE ALSO 557 MILLION VARIABLETERM CERTIFICATES THEY ARE CURRENTLY 484S PRICED AT PAR AND HAVE A FINAL MATURITY OF JULY 1 2008 BOTH MOODY'S AND S&P HAVE RATED THE ISSUE DOUBLEA COMMONWEALTH OF PUERTO RICO 9611 MILLION OF SERIES 1993 PUBLICIMPROVEMENT GENERALOBLIGATION REFUNDING BONDS BROUGHT TO THE MARKET BY A LEHMAN BROTHERS GROUP THE OFFERING CONSISTS OF FIXEDRATE BONDS PRICED TO YIELD FROM 35 IN 1995 TO 575 IN 2018 NOT FORMALLY REOFFERED TO INVESTORS ARE 1262 MILLION OF BOND PAYMENT OBLIGATIONS THERE ARE THREE BLOCKS OF SUCH OBLIGATIONS WITH FINAL MATURITIES IN 2008 2009 AND 2010 ALSO THERE IS 50 MILLION OF DEFERRED INTEREST BONDS THAT AREN'T FORMALLY REOFFERED THE OFFERING HAS BEEN RATED BAA1 BY MOODY'S AND SINGLEA BY S&P MAINE MUNICIPAL BOND BANK 3235 MILLION 1993 SERIES A REFUNDING BONDS PRICED BY A PAINEWEBBER INC GROUP YIELDS RANGE FROM 29 IN 1994 TO 575 IN 2020 MOODY'S HAS RATED THE ISSUE DOUBLEA AND S&P HAS ASSIGNED A SINGLEAPLUS RATING METROPOLITAN WATER DISTRICT OF SOUTHERN CALIFORNIA 1666 MILLION OF BONDS OFFERED THROUGH UNDERWRITING GROUPS LED BY LEHMAN BROTHERS THE WATER DISTRICT'S 767 MILLION 1993 SERIES B WATERWORKS GENERALOBLIGATION REFUNDING BONDS HAVE YIELDS THAT RANGE FROM 235 IN 1994 TO 558 IN 2020 BOTH MOODY'S AND S&P HAVE RATED THE BONDS TRIPLEA A LEHMAN BROTHERS GROUP ALSO PRICED THE WATER DISTRICT'S 899 MILLION 1993 SERIES B WATER REVENUE REFUNDING SECURITIES THE ISSUE INCLUDES 525 MILLION OF FIXEDRATE BONDS WITH YIELDS THAT RANGE FROM 2375 IN 1994 TO 55 IN 2010 THERE ARE ALSO 187 MILLION OF RESIDUAL INTEREST BONDS AND 187 MILLION OF SELECT AUCTION VARIABLE RATE SECURITIES THOSE DERIVATIVES AREN'T FORMALLY REOFFERED TO INVESTORS THE 899 MILLION OF SECURITIES HAVE DOUBLEA RATINGS FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 324 MILLION OF REAL ESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING REMIC SERIES 1554 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 711 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 147 YEARS FEDERAL HOME LOAN MORTGAGE CORP 250 MILLION OF REAL ESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING SERIES 1558 IS BACKED BY THE AGENCY'S 30YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL HOME LOAN MORTGAGE CORP 235 MILLION OF REAL ESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1556 IS BACKED BY THE AGENCY'S 20YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 7125 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 199 YEARS ACINDAR INDUSTRIA ARGENTINA DE ACEROS SA ARGENTINA 50 MILLION OF 925 EUROBONDS DUE JAN 16 1995 AT ISSUE AND FIXED REOFFER PRICE 9967 VIA ABN AMRO BANK NV BONDS YIELD 949 SEMIANNUAL A MARGIN OF 565 BASIS POINTS OVER COMPARABLE US TREASURY NOTE FEES 1125 POINTS BACOB OVERSEAS LTD BELGIAN PARENT 50 MILLION CANADIAN DOLLARS OF 75 EUROBONDS DUE JULY 29 1997 AT ISSUE PRICE 1017 VIA SCOTIAMCLEOD INC REOFFERED AT 100375 TO YIELD 7256 SEMIANNUAL A SPREAD OF 655 BASIS POINTS ABOVE INTERPOLATED YIELD CURVE BETWEEN 65 CANADIAN GOVERNMENT ISSUE DUE 1996 AND 65S OF 1998 GUARANTOR BACOB SAVINGS BANK SC FEES 1525 POINTS COMMUNIDAD DE MADRID SPANISH MUNICIPALITY 250 MILLION OF 575 EUROBONDS DUE JULY 8 1998 VIA NOMURA INTERNATIONAL PLC REOFFERED AT 9939 TO YIELD 589 A MARGIN OF 59 BASIS POINTS ABOVE WHENISSUED YIELD ON US TREASURY FIVEYEAR NOTE FEES 0325 POINT DEN DANSKE BANK DENMARK 150 MILLION OF SUBORDINATED FLOATINGRATE EUROBONDS DUE JUNE 2000 AT ISSUE AND REOFFER PRICE PAR VIA SALOMON BROTHERS INTERNATIONAL LTD BONDS WILL TRADE INTERCHANGEABLY WITH OUTSTANDING 150 MILLION ISSUE OF IDENTICAL BONDS LAUNCHED IN JUNE 1992 ALL OTHER TERMS UNCHANGED INTEREST PAYABLE SEMIANNUALLY AT SIXMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PLUS 110 BASIS POINTS COUPON ON EXISTING AND NEW TRANCHES SET AT 45375 UNTIL DEC 21 1993 BONDS CALLABLE FROM JUNE 1997 AT PAR AND ON EACH INTEREST PAYMENT DATE THEREAFTER IF NOT CALLED FROM JUNE 1997 COUPON WILL BE INCREASED TO LIBOR PLUS 250 BASIS POINTS FEES 05 POINT EUROFIMA SUPRANATIONAL 15 BILLION SPANISH PESETAS OF 10 MATADOR BONDS DUE JULY 26 2003 AT ISSUE PRICE 10125 VIA BANCO DE NEGOCIOS ARGENTARIA SA BONDS YIELD 1008 ANNUAL AT COMANAGING BANKS' BREAKEVEN PRICE OF 995 A LAUNCH SPREAD OF NINE BASIS POINTS BELOW 105 SPANISH GOVERNMENT BOND DUE 2003 FEES 1875 POINTS FEES FOR COMANAGERS 175 POINTS GRUPO IMSA SA DE CV MEXICO 90 MILLION OF 875 EUROBONDS DUE JULY 7 1998 AT ISSUE AND REOFFER PRICE 99405 VIA CITIBANK INTERNATIONAL PLC BONDS YIELD 89 SEMIANNUAL A SPREAD OF 370 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE GUARANTORS INDUSTRIAS MONTERREY SA DE CV AND ACUMULADORES MEXICANOS SA DE CV FEES 12 POINTS KINGDOM OF SWEDEN SOVEREIGN 500 MILLION SWISS FRANCS OF 475 BONDS DUE AUG 11 2003 AT ISSUE PRICE 1025 VIA CREDIT SUISSE FEES STANDARD KYUSHU ELECTRIC POWER CO JAPAN 350 MILLION OF 6375 EUROBONDS DUE JULY 22 2003 AS 6375S VIA IBJ INTERNATIONAL LTD REOFFERED AT 9954 TO YIELD 644 A MARGIN OF 45 BASIS POINTS ABOVE US TREASURY'S 10 YEAR BOND FEES 035 POINT NEDERLANDSE WATERSCHAPSBANK NV NETHERLANDS 250 MILLION GUILDERS OF 6625 EUROBONDS DUE JULY 21 2003 AT ISSUE PRICE 1004 VIA ABN AMRO BANK LTD REOFFERED AT 9965 TO YIELD 667 FEES ONE POINT NETHERLANDS INVESTMENT BANK NETHERLANDS 150 MILLION SWISS FRANCS OF 45 NOTES JULY 16 1996 VIA UBS AT ISSUE PRICE 10165 PRIVATE PLACEMENT FEES STANDARD WHARF CAPITAL INTERNATIONAL 1993 LTD SPECIALPURPOSE VEHICLE 350 MILLION US DOLLARS OF 5 CONVERTIBLE EUROBONDS DUE JULY 15 2000 AT ISSUE PRICE PAR VIA MORGAN STANLEY INTERNATIONAL GUARANTOR WHARF HOLDING LTD HONG KONG A DIVERSIFIED HOLDING COMPANY WITH INTERESTS IN PROPERTY AND CONSTRUCTION BONDS CONVERTIBLE INTO ORDINARY SHARES OF WHARF HOLDING AT CONVERSION PRICE OF 2489 HONG KONG DOLLARS A PREMIUM OF 22 OVER YESTERDAY'S CLOSING SHARE PRICE OF HK2040 CONVERSION PERIOD RUNS FROM NOV 10 1993 TO JULY 8 2000 FEES 25 POINTS INTEREST PAYABLE SEMIANNUALLY 9306240036 930624 INTERNATIONAL INDIA CLEARS SOME FOREIGN INVESTMENTS SENDING BULLISH SIGNAL ON REFORM DRIVE BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI THE INDIAN CABINET APPROVED A NUMBER OF HIGHPROFILE FOREIGN INVESTMENTS A MOVE THAT BUSINESS EXECUTIVES SAID WAS DESIGNED TO SEND OUT POSITIVE SIGNALS ON THE GOVERNMENT'S AMBITIOUS ECONOMIC REFORM PROGRAM FOLLOWING ALLEGATIONS OF CORRUPTION AIMED AT PRIME MINISTER PV NARASIMHA RAO AMONG THE BENEFICIARIES ARE COCACOLA CO PEPSICO INC GENERAL ELECTRIC CAPITAL CORP MORGAN STANLEY INTERNATIONAL INC SEAGRAM CO OF CANADA AND PSA PEUGEOT CITROEN SA THE FRENCH CAR MAKER A SCANDALLINKED BOMBAY BROKER ALLEGED LAST WEEK THAT HE GAVE THE EQUIVALENT OF 320000 IN ILLEGAL CAMPAIGN CONTRIBUTIONS TO MR RAO'S CAMPAIGN IN NOVEMBER 1991 THE ALLEGATIONS BY HARSHAD MEHTA WHO IS CHARGED WITH BRIBERY AND FRAUD IN CONNECTION WITH LAST YEAR'S 18 BILLION INDIAN SECURITIES SCANDAL IN WHICH MONEY WAS DIVERTED FROM BANKS INTO THE STOCK MARKET HAVE BEEN VIGOROUSLY DENIED BUT BUSINESSMEN HAVE EXPRESSED FEARS THAT THE CONTROVERSY MAY CLOUD THE COUNTRY'S BUSINESS CLIMATE OR DAMP THE ECONOMIC REFORM PROGRAM THE GOVERNMENT SAID YESTERDAY THAT IT CLEARED COCACOLA SOUTH ASIA HOLDING INC A UNIT OF COCACOLA TO SET UP A WHOLLY OWNED VENTURE TO MANUFACTURE BEVERAGE CONCENTRATE TO MAKE ITS RANGE OF SOFT DRINKS IN INDIA THE GOVERNMENT LAST YEAR APPROVED A JOINT VENTURE BETWEEN COCACOLA AND BANGALOREBASED BRITANNIA INDUSTRIES LTD WHICH IS SETTING UP A FACTORY TO MAKE CONCENTRATES NEAR PUNE 300 MILES EAST OF BOMBAY BUT THAT JOINT VENTURE HAS RUN INTO TROUBLE BECAUSE OF PROBLEMS WITHIN BRITANNIA AND COCACOLA WENT BACK TO THE GOVERNMENT TO APPLY FOR AN INDEPENDENT OPERATION UNDER THE NEW ARRANGEMENT COKE IS REQUIRED TO EXPORT THREE TIMES THE VALUE OF THE RAW MATERIALS MAINLY SOFTDRINK INGREDIENTS THAT IT IMPORTS INTO INDIA THE COMPANY PLANS TO EXPORT 10 MILLION A YEAR IN INDIANMADE BOTTLES AND PLASTIC BEVERAGE CASES IT ALSO IS REQUIRED TO REINVEST ITS INDIAN PROFITS IN ITS INDIAN OPERATIONS FOR THE FIRST SEVEN YEARS COKE PLANS TO SPEND 20 MILLION TO SET UP ITS PLANT AND TO SELL COCACOLA DIET COKE SPRITE AND FANTA ORANGE DRINK BY YEAR END SAID E NEVILLE ISDELL PRESIDENT NORTHEAST EUROPE/MIDDLE EAST GROUP COKE IS NEGOTIATING AGREEMENTS WITH 20 LOCAL BOTTLERS PEPSI CURRENTLY HAS 22 BOTTLERS COKE WITHDREW FROM INDIA IN 1977 AFTER DOING BUSINESSS THERE FOR NEARLY 30 YEARS IN A FLAP WITH THE GOVERNMENT THAT WOULD HAVE REQUIRED IT TO DISCLOSE THE SECRET FORMULA FOR ITS BEVERAGE IN ANOTHER PROJECT PEPSICO WHICH HOLDS 4435 OF PEPSI FOOD LTD A JOINT VENTURE WITH PUNJAB AGRO INDUSTRIES CORP AND VOLTAS LTD A TATA GROUP COMPANY HAS BEEN ALLOWED TO RAISE ITS EQUITY TO 51 BY BRINGING IN 1807 MILLION RUPEES 58 MILLION GIVING IT CONTROL OF THE VENTURE GE CAPITAL A UNIT OF GENERAL ELECTRIC CO OF THE US HAS BEEN CLEARED TO SET UP A WHOLLY OWNED SUBSIDIARY IN INDIA TO PARTICIPATE IN THE DEVELOPMENT OF FINANCIAL SERVICES MARKETS THE COMPANY PROPOSES AN INVESTMENT OF 75 MILLION TO 100 MILLION IN THE NEXT THREE TO FOUR YEARS BY JOINING WITH INDIAN PARTNERS IN DIFFERENT SECTORS OF FINANCIAL SERVICES MORGAN STANLEY INTERNATIONAL HAS ALSO BEEN ALLOWED TO SET UP A WHOLLY OWNED INDIAN SUBSIDIARY IT WILL HAVE AN INITIAL PAIDUP CAPITAL OF 50 MILLION RUPEES AND WILL ACT AS AN ASSET MANAGEMENT COMPANY IN MUTUAL FUNDS AND OTHER FINANCIAL SERVICES THE COMPANY EXPECTS TO ATTRACT INVESTMENT FROM FOREIGN INSTITUTIONAL INVESTORS THE GOVERNMENT ANNOUNCEMENT SAID A PROPOSAL TO MAKE CARS IN A JOINT VENTURE BETWEEN BOMBAYBASED PREMIER AUTOMOBILES LTD ONE OF INDIA'S THREE LEADING CAR MAKERS AND PEUGEOT OF FRANCE ALSO WAS GIVEN A GREEN LIGHT PEUGEOT INTENDS TO INVEST 200 MILLION FRENCH FRANCS 35 MILLION IN A PROJECT TO MAKE AS MANY AS 60000 PEUGEOT 309 AND 205 MODEL CARS A YEAR THE GOVERNMENT ANNOUNCEMENTSAID THE CARS WILL MEET EUROPEAN EMISSION STANDARDS AND WILL HAVE SEVERAL EXPORT POSSIBILITIES SEAGRAM THE LIQUOR AND FOODS COMPANY WAS CLEARED TO INVEST 250 MILLION RUPEES TO SET UP A WHOLLY OWNED SUBSIDIARY TO BOTTLE 25 MILLION LITERS 264 MILLION QUARTS OF ALCOHOLIC SPIRITS A YEAR BUILD A FRUIT JUICE AND PRODUCTS FACILITY WITH A CAPACITY OF 55000 TONS A YEAR AND SET UP RESEARCH AND DEVELOPMENT FACILITIES ANOTHER LIQUOR PROJECT TO FIND FAVOR WAS A 120 MILLIONRUPEE 5050 JOINT VENTURE BETWEEN UNITED DISTILLERS A UNIT OF BRITAIN'S GUINNESS PLC AND UNITED BREWERIES LTD OF BANGALORE TO MAKE AND BLEND SCOTCH WHISKYS THE GOVERNMENT ALSO APPROVED A PROJECT BY NIPPON DENRO ISPAT LTD OF JAPAN TO MAKE AN INTEGRATED STEEL PLANT USING ELECTRIC ARC FURNACES TO MAKE TWO MILLION METRIC TONS OF HOT ROLLED COILS BASED ON GERMAN TECHNOLOGY 9306240035 930624 BUSINESS BRIEF AMR CORP CANADA'S CABINET APPROVES A PARTNERSHIP WITH PWA CANADIAN PRIME MINISTER BRIAN MULRONEY'S CABINET UPHELD THE COUNTRY'S NATIONAL TRANSPORTATION AGENCY'S APPROVAL OF A PROPOSED PARTNERSHIP AGREEMENT BETWEEN AMR CORP'S AMERICAN AIRLINES AND PWA CORP'S CANADIAN AIRLINES INTERNATIONAL THE AGREEMENT WOULD ALLOW AMR FORT WORTH TEXAS TO BUY A ONETHIRD EQUITY INTEREST AND A 25 VOTING INTEREST IN FINANCIALLY TROUBLED CANADIAN AIRLINES FOR 246 MILLION CANADIAN DOLLARS US1925 MILLION CANADIAN IS AMONG CANADA'S LARGEST AIRLINES AIR CANADA MONTREAL VIGOROUSLY OPPOSED CANADIAN'S LINK WITH AMERICAN AND APPEALED THE RULING TO THE PRIME MINISTER'S CABINET BEFORE FORMING THE PARTNERSHIP CANADIAN MUST BREAK ITS CONTRACT WITH THE GEMINI GROUP FOR A COMPUTERIZED RESERVATION SYSTEM THAT IT SHARES WITH AIR CANADA AMR AS A CONDITION OF ITS INVESTMENT DEMANDED THAT CANADIAN JOIN AMR'S COMPUTER SYSTEM PWA CALGARY ALBERTA SAID IT WILL SEEK A NEGOTIATED SETTLEMENT TO THE DISPUTE 9306240034 930624 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO THE DIALARIDE BUSINESS REVS UP DRIVEN BY THE DISABILITIES LAW UNDER THE AMERICANS WITH DISABILITIES ACT TRANSIT AGENCIES THAT RUN PUBLIC BUS ROUTES ALSO MUST PROVIDE PARATRANSIT OR ONDEMAND CURBTOCURB VAN SERVICE FOR THE DISABLED THIS HAS CREATED A BREAK FOR TRANSPORT FIRMS AS MANY AGENCIES OPT TO FARM OUT THESE OPERATIONS THE AGENCIES HAVE UNTIL 1997 TO PHASE IN THE SERVICE OR EXPAND EXISTING OPERATIONS THERE'S 20 MORE BID OPPORTUNITIES THIS YEAR THAN LAST YEAR SAYS BOBBY GRIFFIN OF ATE MANAGEMENT & SERVICES CO A RYDER UNIT HE EXPECTS THE DIALARIDE MARKET TO GROW TO 2 BILLION BY 1996 FROM 500 MILLION TODAY THE LATEST PARATRANSIT CONTRACTS GENERALLY ARE BIGGER BOTH IN TERMS OF THE NUMBER OF VANS AND SERVICE HOURS ADDS JAMES L PIERSON PRESIDENT OF DAVE TRANSPORTATION SERVICES INC IN IRVINE CALIF A KEY INGREDIENT IN THE LARGER CONTRACTS SOFTWARE SYSTEMS FOR SCHEDULING AND DISPATCHING VANS FARES FOR PARATRANSIT SERVICE ARE CAPPED BY LAW AT DOUBLE THE BUS FARE FOR A SIMILAR ROUTE RANCOR OVER ANCHORING RIGHTS STIRS UP COASTAL WATERS SAN DIEGO PROPOSES TO LIMIT ANCHORING BY RECREATIONAL BOATS IN MOST OF THE BAY TO 72 HOURS WHILE LLOYD HARBOR NY BANS BOATS WITHOUT PERMITS FORT LAUDERDALE FLA RESTRICTS LONGTERM ANCHORAGE TO A COVE THAT CAN COMFORTABLY HOLD 15 BOATS CHARGING 10 A DAY THE MUNICIPALITIES SAY THE RULES ARE NEEDED TO DEAL WITH CROWDED WATERS BUT BOATER GROUPS SAY LOCAL LAWS IMPINGE ON BOATERS' RIGHTS TO DROP ANCHOR IN FEDERAL WATERWAYS INCLUDING COASTAL WATERS THEY'RE TURNING NAUTICAL TRADITION ON ITS HEAD SAYS MICHAEL SCIULLA OF BOAT/US IN ALEXANDRIA VA AND ANCHORING FEES CAN ADD UP IT CAN COST A CRUISING BOATER 500 ANCHORING IN DIFFERENT HARBORS SAYS HARRY ACKER HARBOR MASTER IN HUNTINGTON NY BOAT/US PUSHES FOR CONGRESS TO DETERMINE WHETHER STATES AND TOWNS CAN MAKE SUCH LIMITS THE BOATERS MEET SOME SUCCESS ATTEMPTS BY RIVIERA BEACH FLA TO CURB ANCHORING HAVE BEEN THWARTED BY COUNTY AND STATE COURTS GRADING BAR CODES NEW YARDSTICK IS STUDIED FOR THE RETAIL LABELS THE UNIFORM CODE COUNCIL DAYTON OHIO WEIGHS A SYSTEM TO RATE THE READABILITY OF BAR CODES THE COUNCIL HAS LONG HAD A RECIPE FOR CREATING BAR CODES BASED ON A WIDELY USED PRINTING PROCESS BUT WITH THE ADVENT OF OTHER PRINTING TECHNOLOGIES THERE IS A NEED FOR AFTERTHEFACT VERIFICATION SAYS DAVID ALLAIS A CONSULTANT THE PROPOSED SYSTEM WOULD GRADE BAR CODE QUALITY FROM A TO D BASED ON READINGS BY A DEVICE CALLED THE VERIFIER BUT SOME PACKAGING MAKERS SAY IT IS A MISTAKE TO BASE THE STANDARD ON VERIFIERS WHICH THEY CRITICIZE AS TIME CONSUMING IT'S OVERKILL SAYS DICK BOTSCH OF PRINTPACK INC IN ATLANTA HE SAYS OTHER DEVICES ARE ADEQUATE TO GAUGE WHETHER A CODE CAN BE READ BY SCANNERS IN ONE ATTEMPT ALTHOUGH THEY MAY NOT GIVE AS COMPLETE A READING AS VERIFIERS THE FLEXIBLE PACKAGING ASSOCIATION ALEXANDRIA VA HAS FORMED A GROUP TO OFFER ALTERNATIVES TO THE VERIFIER SYSTEM THE UNIFORM CODE COUNCIL HOPES TO UNVEIL THE NEW STANDARDS IN SEPTEMBER ENGINEERS HANDY WITH A SECOND LANGUAGE CAN BETTER COMPETE IN A GLOBAL MARKET SAYS PENN STATE UNIVERSITY IT WILL OFFER TWO PROGRAMS THIS FALL THAT ALLOW ENGINEERING STUDENTS TO ALSO EARN DEGREES IN GERMAN OR FRENCH RHODE ISLAND AND MARYLAND UNIVERSITIES ALREADY HAVE GERMANENGINEERING PROGRAMS MAKING A PITCH TO A YOUNGER AUDIENCE THE METROPOLITAN MUSEUM OF ART WILL EXHIBIT FOR THE FIRST TIME BASEBALL CARDS FROM ITS BURDICK COLLECTION WHICH NUMBER 30000 CARDS THE CARDS FORMERLY COULD BE VIEWED ONLY BY APPOINTMENT HOT DOGS PEANUTS AND CRACKER JACK WILL BE SERVED AT THE OPENING THE REUNION MARKET GAINS CLOSER SCRUTINY FROM HOTELS WORLD WAR IIRELATED 50TH ANNIVERSARIES HAVE MADE THE MARKET MORE ATTRACTIVE BECAUSE 98 OF GUESTS AT MILITARY GETTOGETHERS RENT ROOMS SAYS REUNION RESEARCH SAN FRANCISCO HOLIDAY INNS AND BEST WESTERN ROLL OUT HOWTO BOOKLETS FOR REUNION PLANNERS INSURING HOME COMPUTERS CAN BE VEXING HOMEOWNERS FIND HOME USERS USUALLY CAN BUY RIDERS TO THEIR HOMEOWNERS' INSURANCE POLICIES TO COVER COMPUTERS BUT COVERAGE SELDOM INCLUDES RUINED SOFTWARE OR PC DAMAGE CAUSED BY POWER SURGES SAYS BOB GRENOBLE OF THE BOSTON COMPUTER SOCIETY THEFT OR DAMAGE TO LAPTOPS AND NOTEBOOKS OUTSIDE THE HOME OFTEN ISN'T COVERED EITHER WITH MORE MULTICOMPUTER HOMES IT'S A REAL ISSUE SAYS JOHN O'LEARY OF COMPUTER SECURITY INSTITUTE IN SAN FRANCISCO THE BOSTON COMPUTER SOCIETY WORKED WITH UTICA NATIONAL INSURANCE GROUP TO DEVISE A HOMEOWNERS' POLICY WITH A RIDER THAT CLOSES THESE GAPS THE RIDER WHICH COVERS PORTABLES IN TRANSIT INSURES COMPUTERS FOR UP TO 10000 FOR AN ADDITIONAL 50 IN ANNUAL PREMIUMS ITALSO COVERS POWER SURGE AND VIRUS DAMAGE AND EXPENSES FOR RECREATING LOST RECORDS SAFEWARE COLUMBUS OHIO PROVIDES SIMILAR COVERAGE BUT DOESN'T OFFER HOMEOWNERS' INSURANCE THE MARKET IS BIGGER FOR WHAT WAS AN EXOTIC BUSINESS SAYS MARC ROSENBERG INSURANCE INFORMATION INSTITUTE BRIEFS U S WEST OFFERS A COURSE ON WHITE MALEISM AND THE CORPORATE CULTURE SWEEPSTAKES WINNERS AT PHILADELPHIA GATEWAY PARKING FACILITY GET A MONTH'S FREE PARKING AT A SPOT DONE IN PURPLE PAINT WITH RED CARPETING AND POTTED PALMS 9306240033 930624 MARKETING & MEDIA NOTED TRAVEL GUIDE THE FIELDING TRAVEL GUIDE SERIES WAS SOLD BY WILLIAM MORROW & CO A UNIT OF HEARST CORP TO AN INVESTOR GROUP FORMED BY ROBERT PELTON A LOS ANGELES ADVERTISING EXECUTIVE TERMS WEREN'T DISCLOSED FIELDING WORLDWIDE INC WHICH WAS ESTABLISHED FOR THE ACQUISITION WILL REVAMP THE GUIDES TO TARGET MORE EXPERIENCED TRAVELERS WESTERNS DELL MAGAZINE FICTION GROUP WILL INTRODUCE IN JANUARY WHAT IT SAID IS THE ONLY MAGAZINE IN ABOUT A DECADE DEVOTED TO ORIGINAL WESTERN FICTION LOUIS L'AMOUR WESTERN MAGAZINE NAMED FOR THE LATE BESTSELLING FRONTIER NOVELIST WILL BE PUBLISHED BIMONTHLY AND EXPECTS TO GO MONTHLY AFTER THREE ISSUES ITS PUBLISHER WILL BE CHRIS HAASHEYE WHO SERVES THAT FUNCTION AT DELL'S FOUR OTHER MAGAZINES ELANA LORE WAS NAMED EDITOR DELL MAGAZINE FICTION GROUP IS A DIVISION OF BANTAM DOUBLEDAY PUBLISHING GROUP INC A UNIT OF BERTELSMANN AG 9306240032 930624 WHO'S NEWS GOVPX CHIEF JONES RESIGNS NEW YORK GOVPX A PROVIDER OF US TREASURY DATA AND PRICING SERVICES OWNED BY A GROUP OF SECURITIES FIRMS SAID A LAURENCE JONES RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE EFFECTIVE AUG 1 MR JONES SAID HE WAS LEAVING TO ACCEPT A SIGNIFICANT POSITION WITH NEODATA SERVICES INC OF BOULDER COLO A TELEMARKETING AND DATABASE MARKETING FIRM IN A STATEMENT HE SAID GOVPX HAS MADE SIGNIFICANT PROGRESS IN THE LAST TWO YEARS AND ITS GROWTH WILL CONTINUE NEITHER MR JONES NOR OTHER GOVPX OFFICIALS COULD BE REACHED FOR COMMENT LAWRENCE LEUZZI CHAIRMAN OF GOVPX'S BOARD AND MANAGING DIRECTOR OF SG WARBURG & CO SAID A SEARCH COMMITTEE OF THE BOARD IS ALREADY SEEKING A SUCCESSOR GOVPX IS OWNED BY A CONSORTIUM OF INTERDEALER BROKERS AND GOVERNMENT SECURITIES DEALERS AND COMPETES WITH CANTOR FITZGERALD INC THE LARGEST INTERDEALER BROKER AND A LEADING PROVIDER OF TREASURY DATA SERVICES CANTOR FITZGERALD'S TREASURY DATA ARE TRANSMITTED BY DOW JONES/TELERATE A DOW JONES & CO UNIT 9306240031 930624 P&G STARTING TO CUT AS MANY AS 10000 JOBS INCENTIVES ARE TO BE USED TO TRIM WORK FORCE CHARGE APPEARS LIKELY BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO IS LAUNCHING ITS FIRST WORLDWIDE COSTCUTTING PROGRAM WHICH COULD SHRINK ITS WORK FORCE BY AS MUCH AS 10 OR 10000 JOBS P&G WILL SOON BEGIN OFFERING VOLUNTARY SEPARATION PACKAGES AND EARLY RETIREMENTS TO HUNDREDS OF SALARIED EMPLOYEES INCLUDING SOME WELLPAID MANAGERS IN SALES MARKET RESEARCH AND OTHER DEPARTMENTS SEVERAL FORMER P&G EXECUAY THEY CONFIRM ANALYSTS' EARLIER PROJECTIONS THAT THE NUMBER OF JOBS CUT COULD ULTIMATELY TOTAL 10000 STAFF MEMBERS IN PRODUCT DEVELOPMENT MANAGEMENT INFORMATION SYSTEMS MARKETING AND OTHER DEPARTMENTS COULD SOON RECEIVE SIMILAR PACKAGES HOURLY MANUFACTURING AND DISTRIBUTION WORKERS ARE ALSO VULNERABLE TO JOB CUTS THE JOB CUTS WHICH WERE EXPECTED MARK THE FIRST TIME P&G IS REDUCING ITS WORK FORCE WORLDWIDE P&G PREVIOUSLY HAS CUT COSTS ON A MORE LIMITED BASIS SHEDDING JOBS IN INDIVIDUAL MANUFACTURING PLANTS AND BUSINESS UNITS THE CINCINNATIBASED CONSUMER PRODUCTS GIANT WHICH IS STRUGGLING WITH FLAT PRICES AND WEAKENING MARKET SHARES IN KEY PRODUCTS SUCH AS DIAPERS DECLINED TO COMMENT ON THE NUMBER OF JOBS THAT WILL BE ELIMINATED BUT IT CONFIRMED THAT BUSINESS UNITS WILL SOON START IMPLEMENTING CUTS HOPING TO AVOID LAYOFFS THE COMPANY SAID JOB REDUCTIONS WILL COME FROM A COMBINATION OF RETIREMENTS RELOCATIONS REDUCTIONS IN RECRUITING AND VOLUNTARY SEPARATIONS WE'RE TARGETING FOR SOME FURTHER COMMUNICATIONS TO EMPLOYEES BY LATE JULY A P&G SPOKESWOMAN SAID SHE ADDED THAT RECOMMENDATIONS FROM CORPORATE TASK FORCES WHICH SINCE DECEMBER HAVE BEEN IDENTIFYING FAT ARE NOW GOING TO BUSINESS UNITS THE UNITS IN TURN WILL DEVELOP SPECIFIC ACTION PLANS SHE SAID P&G WOULDN'T SAY IF SEVERANCE PACKAGES WILL REQUIRE A CHARGE IN ITS FISCAL FOURTH QUARTER ENDING JUNE 30 OR FUTURE QUARTERS HOWEVER ANALYSTS BELIEVE A CHARGE IS LIKELY AT SOME POINT THEY'RE CURRENTLY ESTIMATING THAT BEFORE ANY CHARGE P&G EARNINGS WILL BE FLAT AT 46 CENTS A SHARE FOR ITS FISCAL FOURTH QUARTER IN THE YEAREARLIER PERIOD THE COMPANY EARNED 339 MILLION OR 46 CENTS A SHARE P&G HAS SAID IT INTENDS TO CUT EXPENSES TO 12 OF SALES FROM 145 OVER THE NEXT THREE YEARS BASED ON FISCAL 1992 SALES OF 2936 BILLION THAT MEANS CUTTING COSTS SOME 750 MILLION ANALYSTS HAVE PREDICTED THAT NEARLY 10 OF THE WORK FORCE WOULD BE CUT IT'S CERTAINLY POSITIVE FOR THE STOCK PEOPLE HAVE BEEN HOPING THEY'D DO SOMETHING TO REDUCE STAFF EXPENSES SAID BONITA AUSTIN A SHEARSON ANALYST THEY WANT TO BECOME MORE EFFICIENT AND HAVE CONTROL OVER THEIR COSTS SO WHATEVER THE COMPETITION DOES THEY CAN RESPOND P&G HIRED CONSULTANT BOOZ ALLEN & HAMILTON INC IN DECEMBER TO HELP EMPLOYEE TASK FORCES DEVELOP A COSTCUTTING PLAN MOST EMPLOYEES HAVE BEEN GIVEN JOB PERFORMANCE EVALUATIONS IN THE PAST FEW MONTHS WITH THE POOR PERFORMERS BEING QUIETLY ENCOURAGED TO LEAVE IN RECENT WEEKS P&G HAS FLATTENED THE MANAGEMENT HIERARCHY OF ITS SALES DEPARTMENT TO CUT COSTS AND IMPROVE THE WAY IT SERVES RETAILERS ACCORDING TO THE FORMER EXECUTIVES IN A JUNE 8 INTERNAL MEMO P&G SAID THE CHANGES ARE BEING MADE TO INCREASE CUSTOMER FOCUS AND ADMINISTRATIVE EFFICIENCY THE CHANGES CONSOLIDATE THREE MANAGEMENT LAYERS INTO TWO BY ELIMINATING THE TITLES OF DIVISION AND DISTRICT MANAGERS HELD BY ABOUT 500 PEOPLE UNDER THE SYSTEM BEING SCRAPPED A DIVISION MANAGER MIGHT BE IN CHARGE OF DIAPERS IN THE EASTERN US WHILE A DISTRICT MANAGER HANDLED DIAPERS IN SEVERAL NORTHEASTERN STATES NOW THESE MANAGERS ARE BEING REASSIGNED TO TEAMS THAT ARE ORGANIZED AROUND CUSTOMERS SOME WILL WORK ON CUSTOMER DEVELOPMENT TEAMS WHICH SERVE SPECIFIC RETAILERS SUCH AS WALMART AND KROGER OTHERS ASSIGNED TO SECTOR BUSINESS DEVELOPMENT TEAMS WILL HANDLE GROUPS OF PRODUCTS FOR CUSTOMERS IN CERTAIN GEOGRAPHIC REGIONS SALES MANAGERS WHO AREN'T OFFERED NEW JOBS WILL BE OFFERED SEPARATION PACKAGES THE TOTAL NUMBER OF SUCH EXECUTIVES HASN'T BEEN DECIDED P&G WOULDN'T COMMENT ON HOW MANY EMPLOYEES ARE BEING AFFECTED BECAUSE WE ARE STILL IN THE PROCESS OF IMPLEMENTING THESE CHANGES WE REALLY DON'T KNOW YET HOWEVER THE COMPANY SAID EMPLOYEES WHO DON'T ACCEPT GEOGRAPHIC TRANSFERS OR NEW RESPONSIBILITIES MAY FACE VOLUNTARY SEPARATIONS THE COMPANY ALSO PLANS TO CUT SALARIED JOBS IN OTHER DEPARTMENTS IN MARKETING P&G SAID IT'S IN THE PROCESS OF ELIMINATING ONE MANAGEMENT LAYER BETWEEN BRAND MANAGER AND GENERAL MANAGER CURRENTLY BRAND MANAGERS REPORT TO ASSOCIATE AD MANAGERS OR AD MANAGERS WHO REPORT TO GENERAL MANAGERS HOW THIS PLAYS OUT AND WHAT LEVEL OR TITLE WILL BE CUT DEPENDS ON THE BUSINESS CATEGORY AND THE GEOGRAPHY P&G SAID MEANWHILE THE COMPANY IS CONSIDERING ELIMINATING SOLO A REGIONAL LIQUID LAUNDRY DETERGENT AVAILABLE IN THE NORTHEAST WHICH LAGS BEHIND P&G'S STRONGER TIDE CHEER AND BOLD BRANDS THE FORMER P&G EXECUTIVES SAY P&G DECLINED TO COMMENT ON SOLO IN THE PAST YEAR P&G HAS SCRAPPED PURITAN COOKING OIL AND WHITE CLOUD BATHROOM TISSUE AS IT SCRUTINIZES ITS VAST CABINET OF BRANDS FOR SLOW SELLERS THE COMPANY ALSO IS CONSIDERING REORGANIZING ITS US CANADA AND MEXICO PLANTS TO IMPROVE MANUFACTURING AND DISTRIBUTION EFFICIENCY IN NORTH AMERICA ACCORDING TO THE FORMER EXECUTIVES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY P&G SHARES FELL 25 CENTS APIECE TO 4925 9306240030 930624 TECHNOLOGY & SCIENCE SPRINT SERVICE CAN TURN CELLULAR PHONES INTO PAGERS NEW YORK SPRINT CORP BEGAN OFFERING CUSTOMERS IN LAS VEGAS A SERVICE THAT TURNS CELLULAR TELEPHONES INTO PAGERS AND ALERTS THE CUSTOMER TO VOICEMAIL MESSAGES FOR 995 A MONTH A SPRINT CUSTOMER IN LAS VEGAS CAN RECEIVE A SHORT TEXT MESSAGE PRINTED ON THE TELEPHONE'S ELECTRONIC DISPLAY OR BE PAGED THE CELLULARPHONE SYSTEM ALSO WILL ALERT THE CUSTOMER TO A VOICEMAIL MESSAGE WHICH THE CUSTOMER CAN RETRIEVE BY PRESSING THE TELEPHONE'S SEND KEY ACCORDING TO SPRINT BASED IN WESTWOOD KAN BECAUSE THE PAGING AND VOICEMAIL ALERT ARE TRANSMITTED IN DIGITAL FORM THE NEW SERVICE USES SPECIAL MOTOROLA INC NETWORK EQUIPMENT AND SOFTWARE THAT ALLOWS A DIGITIZED MESSAGE TO BE SENT OVER THE REGULAR ANALOG CELLULARPHONE NETWORK A SPRINT SPOKESMAN SAID YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SPRINT CLOSED AT 33 A SHARE OFF 50 CENTS MCCAW CELLULAR COMMUNICATIONS INC THE ONLY NATIONAL CELLULARPHONE COMPANY SAID IT PLANS TO ROLL OUT FULLY DIGITAL PHONE PAGING AND DATA SERVICES BY 1994 THAT WILL ALLOW CUSTOMERS TO USE ALMOST ANY CELLULAR PHONE 9306240029 930624 TRAVEL MAJOR AIRLINES CONTINUE CUTS OF 30 ON FARES BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL MAJOR AIRLINES ATTEMPTING TO STIR UP SLUGGISH SUMMER TRAFFIC SWEETENED AND EXTENDED TERMS OF THEIR 30 FARE DISCOUNT THE DISCOUNT WHICH HAD BEEN SCHEDULED TO END TOMORROW WAS EXTENDED THROUGH JUNE 30 INDUSTRY OFFICIALS SAID THEY HOPE THIS MINI FARE WAR WON'T TURN INTO THE SAME FULLSCALE TARIFF WAR THAT RAGED LAST SUMMER AND LED TO MASSIVE LOSSES OH NO NOTHING LIKE LAST SUMMER A SPOKESMAN FOR AMR CORP'S AMERICAN AIRLINES SAID OF THE SPECIAL WE HAVE TO MAKE MONEY NORTHWEST AIRLINES A UNIT OF WINGS HOLDINGS INC LAUNCHED THE INITIATIVE LAST WEEK WITH THE 30OFF DEAL OTHER MAJOR AIRLINES FOLLOWED YESTERDAY MOST SWEETENED THE OFFER BY REQUIRING PURCHASE ONLY SEVEN DAYS IN ADVANCE INSTEAD OF 14 DAYS BY EXTENDING THE PURCHASING DEADLINE BY FIVE DAYS AND BY OFFERING THE DEALS ON ALL DOMESTIC ROUTES SUMMER TRAFFIC HAS BEEN ANEMIC BECAUSE OF CONSUMERS' CONCERNS ABOUT THE ECONOMY AND ALSO BECAUSE MANY TRAVELERS FIGURED BARGAIN FARES WOULD BE OFFERED EVENTUALLY SOME THOUGHT THE 30 SALE WAS A CASHRAISING EXERCISE BY TROUBLED NORTHWEST SAID SHERI KIGHT ASSISTANT EDITOR OF BEST FARES AN ARLINGTON TEXAS PUBLICATION THAT TRACKS TARIFFS BUT THE FACT THAT ALL THE MAJOR CARRIERS QUICKLY MATCHED NORTHWEST INDICATES THEY'RE ALL HURTING SHE SAID IT'S A REFLECTION THAT LOAD FACTORS ARE DOWN AMERICAN AIRLINES WHICH LAST WEEK WARNED WALL STREET THAT ITS SECONDQUARTER RESULTS WOULD BE BELOW EXPECTATIONS EXPECTS THIS PROMOTION TO BE MORE BENEFICIAL THAN LAST SUMMER'S INDUSTRYWIDE HALFOFF TICKET SALE UAL CORP'S UNITED AIRLINES SAID CALLS TO ITS RESERVATIONS CENTER HAVE BEEN RUNNING 60 ABOVE LAST WEEK'S VOLUME LARGELY DUE TO THE NEW FARE AIRLINE OFFICIALS PRIVATELY EXPRESSED CONCERNS THAT A MAJOR CARRIER MIGHT OFFER DEEPER DISCOUNTS WE'D CERTAINLY HAVE TO LOOK AT MATCHING SAID ONE OFFICIAL WE HAVE TWO CHOICES MATCH OR FLY EMPTY BOTH ARE PRETTY COSTLY MS KIGHT OF BEST FARES NOTES HOWEVER THAT WITH DISCOUNT COUPONS OFFERED BY EVERYBODY FROM HOTELS TO GROCERY STORE CHAINS TO CATALOG MERCHANDISERS CONSUMERS ACTUALLY CAN GET DEALS THAT APPROACH LAST SUMMER'S BARGAINS SHE CITED AN EXAMPLE BEFORE THE AIR FARE PROMOTION A ROUNDTRIP DALLASBOSTON TICKET COST 470 THIS WEEK THE SAME TRIP CAN BE HAD FOR 329 BUT IF A TRAVELER CAN GET A SPECIAL COUPON FROM NORTHWEST FOR GROUPS OF FOUR TO SEVEN PEOPLE INDIVIDUAL FARES ON THAT ROUTE DROP TO 208 THROW IN SOME HOTEL COUPONS FOR DISCOUNTED ACCOMMODATIONS AND IT'S A FARE WAR SPONSORED BY SEVERAL TRAVEL PROVIDERS MS KIGHT SAID THIS SUMMER'S FIRST VOLLEY IN THE AIRFARE WAR SLICES INTO TICKETS THAT GENERALLY WERE AT A HIGHER BASE THAN THEY WERE LAST YEAR IN FACT MOST CARRIERS LAST MONTH RAISED FARES 10 TO 20 ON ROUNDTRIP TICKETS AIMED AT LEISURE TRAVELERS THUS AIRLINE OFFICIALS SAID THEY DON'T EXPECT THIS INITIATIVE TO CUT AS DEEPLY INTO PROFITS THE 30 DISCOUNT AND NEW LOOSER CONDITIONS HAVE BEEN ADOPTED BY DELTA AIR LINES TRANS WORLD AIRLINES CONTINENTAL AIRLINES AND OTHERS TICKETS REQUIRE A SATURDAY NIGHT STAY AND THE BEST DISCOUNTS APPLY TO TRAVEL ON TUESDAYS WEDNESDAYS AND SATURDAYS A DISCOUNT OF 25 IS AVAILABLE ON THE OTHER DAYS 9306240028 930624 BUSINESS BRIEF BRODERBUND SOFTWARE INC THIRDQUARTER EARNINGS ROSE 31 TO 21 MILLION BRODERBUND SOFTWARE INC NOVATO CALIF POSTED A 31 INCREASE IN THIRDQUARTER PROFIT TO 21 MILLION OR 21 CENTS A SHARE FROM 16 MILLION OR 16 CENTS A SHARE REVENUE ROSE 11 TO 164 MILLION FROM 149 MILLION THE PUBLISHER OF HOME AND EDUCATIONAL SOFTWARE SAID GROWTH THROUGH THE SEASONALLY SOFT SPRING QUARTER WAS DRIVEN BY NEWLY RELEASED PRODUCTS SUCH AS WHERE IN SPACE IS CARMEN SANDIEGO AND PRINCE OF PERSIA2 BRODERBUND SAID ITS RESULTS WERE CONSISTENT WITH THE HIGHEND OF THE RANGE OF ESTIMATES BY WALL STREET ANALYSTS THE COMPANY RELEASED ITS EARNINGS AFTER THE CLOSE OF THE YESTERDAY'S TRADING WHICH SAW BRODERBUND SHARES FALL 150 TO 3550 AS A RESULT OF WHAT A SPOKESWOMAN CALLED NORMAL FLUCTUATIONS FOR THE NINEMONTH PERIOD BRODERBUND SAID PROFIT ROSE 38 TO 107 MILLION OR 107 A SHARE FROM 77 MILLION OR 79 CENTS A SHARE REVENUE ROSE 30 TO 734 MILLION FROM 564 MILLION 9306240027 930624 WHAT'S NEWS BUSINESS AND FINANCE PROCTER & GAMBLE IS LAUNCHING ITS FIRST WORLDWIDE COSTCUTTING PROGRAM WHICH COULD SHRINK ITS WORK FORCE BY AS MUCH AS 10 OR 10000 JOBS THE CONSUMER PRODUCTS GIANT IS STRUGGLING WITH FLAT PRICES AND THE LOSS OF MARKET SHARE IN SOME KEY AREAS THE COMPANY WILL OFFER VOLUNTARY SEPARATION PACKAGES AND EARLY RETIREMENTS TO HUNDREDS OF SALARIED WORKERS RJR CANCELED ITS 17 BILLION OFFERING OF NABISCO STOCK BLAMING THE POOR MARKET FOR FOOD STOCKS THE COLLAPSE OF THE DEAL WAS A BLOW TO THE GIANT TOBACCO AND FOOD COMPANY AND TO ITS KEY HOLDER KOHLBERG KRAVIS ROBERTS DURABLE GOODS ORDERS FELL 16 IN MAY THE DROP FOLLOWED DECLINES IN APRIL AND MARCH AND POINTS TO FURTHER WEAKNESS IN MANUFACTURING MEANWHILE THE ECONOMY GREW AT A TINY 07 ANNUAL RATE IN THE FIRST QUARTER BUSINESS ACTIVITY IS INCREASING AT A SLOW TO MODERATE PACE IN MOST OF THE NATION THE FED REPORTED EXPECTATIONS ARE GENERALLY FOR SLOW GROWTH WITH NO MAJOR HOT SPOTS IN THE ECONOMY STOCKS FELL ON THE FRESH SIGNS OF ECONOMIC WEAKNESS THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 3072 POINTS TO 346681 BOND PRICES WERE MIXED THE DOLLAR ENDED LOWER THE SENATE REJECTED TWO TAX BREAKS FOR SMALL BUSINESSES WHICH DEMOCRATIC LEADERS HAD TRIED TO ATTACH TO A BUDGET DEFICITREDUCTION PLAN TO SECURE SUPPORT FROM SOME PARTY MEMBERS GENERAL DYNAMICS MAY GET A REPRIEVE FROM THE PENTAGON FOR ITS TANK AND SUBMARINE BUSINESSES THE AGENCY IS MULLING PLANS THAT WOULD KEEP GIVING WORK TO THE PLANTS MAJOR AIRLINES SWEETENED AND EXTENDED TERMS OF THEIR 30 FARE CUT IN AN EFFORT TO STIR UP SLUGGISH SUMMER TRAFFIC THE DISCOUNT SCHEDULED TO END TOMORROW NOW RUNS THROUGH JUNE 30 TAMBRANDS IS TAKING A 20 MILLION CHARGE AGAINST SECONDQUARTER EARNINGS FOR RESTRUCTURING AND OTHER EXPENSES THE MAKER OF TAMPONS STOPPED SHORT OF SAYING IT ISN'T FOR SALE NORTH AMERICANBUILT VEHICLES SOLD AT A SLOWER PACE IN MIDJUNE THAN IN THE PREVIOUS 30DAY PERIOD BUT ANALYSTS SAID THE INDUSTRYWIDE RECOVERY STILL APPEARS TO BE ON TRACK GM AND THE UAW KICKED OFF CONTRACT TALKS AND ALMOST IMMEDIATELY DISAGREEMENT DEVELOPED OVER THE ISSUE OF WHAT WORKERS IN THE AUTO MAKER'S PARTS OPERATIONS SHOULD EARN GM SAYS IT CAN'T CONTINUE PAYING ITS UAW PARTS WORKERS WHAT IT CURRENTLY PAYS JAPAN AGREED TO EXPAND FOREIGN PENSIONFUND FIRMS' ACCESS TO THE NATION'S PENSIONFUND MARKET WHILE THE CONCESSION FURTHER OPENS JAPANESE FINANCIAL MARKETS US TRADE NEGOTIATORS SAY MORE NEEDS TO BE DONE OLYMPIA & YORK'S US UNIT RECEIVED A BOOST FOR ITS DEBT RESTRUCTURING EFFORTS WHEN ITS CREDITORS AND EQUITY HOLDERS REACHED AGREEMENT ON HOW THE SUBSIDIARY WILL BE GOVERNED GROUPE MICHELIN'S US UNIT PLANS TO CUT 2500 EMPLOYEES OR 9 OF ITS WORK FORCE ANALYSTS ATTRIBUTE THE DECISION TO COMPETITORS' EATING AWAY AT THE TIRE COMPANY'S MARKET SHARE BRITISH PETROLEUM CHALKED UP TWO MORE ASSET SALES THAT WILL HELP IT FURTHER PARE ITS HUGE DEBT WHICH TOTALED 145 BILLION AT THE END OF MARCH TOKYO STOCK PRICES FINISHED MIXED IN VERY THIN TRADING THE NIKKEI INDEX DECLINED 4578 POINTS TO 1949252 GENENTECH WON A BROAD PATENT COVERING BASIC GENESPLICING TECHNOLOGY AND USED THE AWARD TO WIDEN ITS PATENTINFRINGEMENT WAR WITH ELI LILLY CORNING AGREED TO ACQUIRE COSTAR FOR ABOUT 180 MILLION IN STOCK A MOVE THAT WILL SUBSTANTIALLY BOOST CORNING'S SCIENTIFIC LAB PRODUCTS BUSINESS BONDS LEHMAN BROTHERS TREASURY INDEX 522086 UP 992 COMMODITIES OIL 1886 A BARREL UP 4 CENTS DOW JONES FUTURES INDEX 12044 UP 039 SPOT INDEX 12044 UP 018 DOLLAR 10900 YEN OFF 185 YEN 16920 MARKS OFF 00045 9306240026 930624 WHO'S NEWS JOSTENS INC JOSTENS INC MINNEAPOLIS ROBERT C BUHRMASTER 45 YEARS OLD WAS NAMED TO THE VACANT POSTS OF PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF CLASS RINGS AND YEARBOOKS HE PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT AND CHIEF STAFF OFFICER MR BUHRMASTER ALSO WAS ELECTED A DIRECTOR INCREASING BOARD MEMBERSHIP TO EIGHT IN ADDITION JOSTENS APPOINTED JOHN KERNAN 47 A VICE CHAIRMAN HE CONTINUES AS CHAIRMAN OF THE JOSTENS LEARNING CORP UNIT 9306240024 930624 ABREAST OF THE MARKET BAD ECONOMIC NEWS SINKS STOCKS INDUSTRIAL AVERAGE DROPS BY 3072 BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TROUBLING ECONOMIC NEWS PILED ATOP SEVERAL RECENT DOWNBEAT EARNINGS PROJECTIONS PUSHED STOCK PRICES LOWER WEAKERTHANEXPECTED REPORTS IN THE MORNING ON MAY DURABLE GOODS ORDERS AND ON OVERALL FIRSTQUARTER ECONOMIC GROWTH ADDED TO THE PESSIMISM SPAWNED TUESDAY BY CAUTIONARY EARNINGS FORECASTS FROM COMPANIES SUCH AS KMART THE COMMERCE DEPARTMENT SAID DURABLEGOODS ORDERS FELL 16 LAST MONTH INSTEAD OF RISING 12 AS EXPECTED MEANWHILE IT CUT ITS ESTIMATE OF FIRSTQUARTER GROSS DOMESTIC PRODUCT GROWTH TO JUST 07 FROM A PREVIOUS ESTIMATE OF 09 STOCK PRICES ERODED THROUGHOUT THE DAY THE DOW JONES INDUSTRIAL AVERAGE CLOSED AT ITS SESSION LOW OF 346681 DOWN 3072 OR 088 SHARP LOSSES IN SEVERAL OILRELATED ISSUES AFTER NEGATIVE COMMENTS FROM SECURITIES ANALYSTS ADDED TO THE LOSS IN THE AVERAGE THE DURABLEGOODS NUMBER IS A MAJOR DISAPPOINTMENT SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH IT'S JUST ONE MORE INDICATION THAT GOVERNMENT ECONOMIC POLICY IS HAVING A NEGATIVE IMPACT ON BUSINESS HE SAID WHILE MR SOLLOWAY SAID HE STILL EXPECTS GDP GROWTH AT A RATE OF MORE THAN 3 IN COMING QUARTERS HE SAID UNCERTAINTIES ABOUT THE ECONOMY AND PRESIDENT CLINTON'S ECONOMIC PLANS WERE GREAT ENOUGH TO WARRANT A MORE CAUTIOUS STANCE IN THE STOCK MARKET ARGUS YESTERDAY ADVISED CLIENTS TO REDUCE THEIR EXPOSURE TO STOCKS TO 60 OF THEIR INVESTMENT PORTFOLIO AND TO INCREASE THEIR CASH HOLDINGS TO 15 BUT STEVEN EINHORN MARKET STRATEGIST AT GOLDMAN SACHS & CO SAID HE WASN'T AS RATTLED BY THE RECENT ECONOMIC AND EARNINGS NEWS I DON'T THINK THE STOCK MARKET DECLINE IS INDICATIVE OF ANYTHING PROBLEMATIC HE SAID MR EINHORN SAID THE MARKET IS MERELY MOVING WITHIN THE TIGHT TRADING RANGE THAT HAS HELD FOR MONTHS WE HAVE BEEN AT THE UPPER END NOW I THINK WE ARE GOING TO THE LOWER END AND WE WILL PROBABLY BOUNCE AROUND BETWEEN THOSE TWO POINTS OVER THE SUMMER HE SAID EDWARD LAUX HEAD OF BLOCK TRADING AT KIDDER PEABODY & CO SAID NEGATIVE ANALYST COMMENTS ABOUT BOTH THE OIL STOCKS AND THE BANK GROUP PLAYED A LARGE ROLE IN YESTERDAY'S WEAKNESS YOU HAD TWO STRONG GROUPS GET DOWNGRADED BY PROMINENT ANALYSTS HE SAID KIDDER PEABODY ANALYST BERNARD PICCHI CUT INVESTMENT RATINGS ON ROYAL DUTCH PETROLEUM WHICH LOST 1 1/8 TO 91 7/8 TEXACO OFF 1 5/8 TO 62 1/2 ATLANTIC RICHFIELD WHICH TUMBLED 4 3/4 TO 114 5/8 AND PHILLIPS PETROLEUM DOWN 1 TO 29 IN PART HE CITED FORECASTS OF LOWER OIL PRICES PRUDENTIAL SECURITIES MEANWHILE DOWNGRADED RATINGS ON EIGHT BANKS AMONG THEM WERE CITICORP OFF 3/4 TO 28 1/2 CHEMICAL BANKING DOWN 1 1/8 TO 39 3/4 BARNETT BANKS WHICH DROPPED 5/8 TO 47 AND NATIONSBANK DOWN 1 3/8 TO 47 7/8 GENENTECH FELL 1 3/8 TO 41 5/8 DESPITE SEVERAL POSITIVE DEVELOPMENTS INVOLVING THE COMPANY THE SOUTH SAN FRANCISCO CALIF CONCERN RECEIVED A PATENT ON ITS DNA TECHNOLOGY PROCESS AND LEARNED THAT A FOOD AND DRUG ADMINISTRATION PANEL PLANS TO REVIEW ITS PULMOZYME TREATMENT FOR CYSTIC FIBROSIS ON AUG 9 TRADERS ATTRIBUTED THE STOCK'S DROP TO PROFITTAKING IT HIT A 52WEEK HIGH TUESDAY INLAND STEEL CLIMBED 1 1/2 TO 28 3/4 MORGAN STANLEY & CO ANALYST R WAYNE ATWELL UPGRADED HIS RATING ON THE STOCK TO BUY FROM HOLD HE CITED THE CHICAGO COMPANY'S COST REDUCTION EFFORTS AND THE COMMERCE DEPARTMENT'S DECISION TUESDAY TO PENALIZE 19 COUNTRIES FOR DUMPING STEEL IN THE US NOVACARE LOST 1 3/8 TO 13 7/8 THE KING OF PRUSSIA PA COMPANY AGREED TO ACQUIRE REHABILITATION HOSPITAL CORP OF AMERICA A CLOSELY HELD PHILADELPHIA COMPANY NOVACARE WILL PAY 31 MILLION IN CASH AND WILL PAY DOWN DEBT AND REDEEM PREFERRED STOCK TOTALING AN ADDITIONAL 20 MILLION ANNTAYLOR STORES SKIDDED 2 1/8 TO 22 3/4 CJ LAWRENCE ANALYST JEFFREY EDELMAN CUT HIS ESTIMATE OF THE NEW YORK CLOTHING RETAILER'S SECONDQUARTER EARNINGS TO 13 CENTS A SHARE FROM 20 CENTS HE SAID ITS JUNE APPAREL SALES HAVE BEEN WEAK A YEAR EARLIER ANNTAYLOR HAD EARNINGS OF THREE CENTS A SHARE CAPITAL CITIES/ABC LOST 24 TO 503 AFTER ALEX BROWN & SONS DOWNGRADED A RATING TO NEUTRAL FROM BUY CITING CONCERNS ABOUT ADVERTISING LEVELS AT THE TELEVISION NETWORK CBS SHARES FELL 18 5/8 TO 214 GENERAL ELECTRIC PARENT OF THE NBC NETWORK ADDED 1 TO 96 BRILLIANCE CHINA JUMPED 4 1/8 TO 22 3/8 AFTER GAINING 2 1/8 TUESDAY ON NEWS THAT CHINESE AUTHORITIES AGREED TO CUT THE TARIFFS THE COMPANY PAYS TO IMPORT KITS IT USES TO ASSEMBLE MINIBUSES THE HONG KONG COMPANY TODAY DECLARED A QUARTERLY DIVIDEND OF TWO CENTS GLAXO HOLDINGS EASED 3/8 TO 16 7/8 SMITH BARNEY HARRIS UPHAM & CO ANALYST CHRISTINA HEUER TRIMMED AN INVESTMENT RATING ON THE STOCK SAYING THE UK DRUG MAKER MAY NOT BE ABLE TO SUSTAIN ITS DOUBLEDIGIT EARNINGS GROWTH BEYOND FISCAL 1994 RJR NABISCO ADDED 1/4 TO 5 1/2 THE NEW YORK FOOD AND TOBACCO GIANT CANCELED PLANS FOR A PUBLIC OFFERING OF A NEW CLASS OF STOCK THAT WOULD REPRESENT A 25 INTEREST IN ITS NABISCO FOOD BUSINESS IT SAID RECENT DECLINES IN FOOD STOCK PRICES WOULD HAVE MADE IT DIFFICULT TO COMPLETE ITS OFFERING AT AN ACCEPTABLE PRICE 9306240023 930624 GM KICKS OFF CONTRACT TALKS WITH UAW BY SEEKING LOWER WAGES AT PARTS PLANTS BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL AUBURN HILLS MICH GENERAL MOTORS CORP AND THE UNITED AUTO WORKERS UNION KICKED OFF CONTRACT TALKS AND ALMOST IMMEDIATELY SPARKS FLEW OVER THE ISSUE OF WHAT WORKERS IN GM'S PARTS OPERATIONS SHOULD EARN AT A TIME WHEN GM AND THE UAW SEEM TO BE PATCHING UP A LOT OF THEIR DIFFERENCES GM'S STEPPEDUP DEMANDS FOR LOWER WAGES IN ITS US PARTS OPERATIONS WILL BE ONE OF THE THORNIEST ISSUES IN BARGAINING TOWARD A NEW THREEYEAR LABOR AGREEMENT GM SAYS IT CAN'T GO ON PAYING ITS UAWREPRESENTED PARTS WORKERS WHAT IT PAYS NOW 42 AN HOUR IN WAGES AND BENEFITS GM CONTENDS NEARLY DOUBLE WHAT WORKERS AT RIVAL OPERATIONS RECEIVE THERE ARE PARTS OF OUR BUSINESS THAT CAN'T BE COMPETITIVE WITH THE LABOR COSTS WE HAVE TODAY SAID GM'S TOP NEGOTIATOR GERALD KNECHTEL AT A NEWS CONFERENCE YESTERDAY FOLLOWING THE FIRST BARGAINING SESSION GM ALREADY IS TRYING TO SELL PARTS OPERATIONS WITH 3 BILLION IN SALES MORE COULD GO ON THE BLOCK IF GM DOESN'T GET RELIEF ON WAGES COMPANY OFFICIALS SAY BUT UAW PRESIDENT OWEN BIEBER WAS EQUALLY ADAMANT THAT HE WON'T ACCEPT REDUCED WAGES OR BENEFITS FOR ANY GM WORKER WE DON'T SEE LOWER WAGES AS THE SOLUTION TO THE PROBLEM SAID MR BIEBER THAT'S NOT WHAT THE UAW CONCLUDED WITH CHAMPION SPARK PLUGS A MAJOR COMPETITOR OF GM'S AC ROCHESTER SPARK PLUG OPERATION LAST YEAR THE UAW ACCEPTED A TWOTIER WAGE CONTRACT AT CHAMPION A UNIT OF COOPER INDUSTRIES INC UNDER THE CONTRACT CHAMPION WORKERS HIRED PREVIOUSLY CONTINUE TO RECEIVE A BASE WAGE OF 1574 AN HOUR BUT NEW HIRES START AT JUST 912 AN HOUR THAT'S NOT THE ONLY CHANGE CHAMPION ALSO ELIMINATED HEALTHCARE INSURANCE FOR MANY FUTURE RETIREES AND DEMANDED THAT ACTIVE WORKERS BEGAN PICKING UP MORE HEALTHCARE COSTS IT'S BEEN A TOUGH PILL TO SWALLOW SAID JAMES CARTER THE FINANCIAL SECRETARY FOR THE UAW LOCAL AT CHAMPION'S FACTORY IN BURLINGTON IOWA BUT MR CARTER SAID THE UNION MADE THE CONCESSIONS AFTER CHAMPION THREATENED TO REMOVE MANY OF MACHINES IN THE BURLINGTON FACTORY AND TRUCK THEM TO ANOTHER LOCATION THE UNION CHECKED AND FOUND THAT CHAMPION HAD INDEED RENTED THE TRUCKS THE LOCAL THEN SIGNED THE CONCESSIONARY CONTRACT WHILE MR BIEBER ACKNOWLEDGED YESTERDAY THAT THE UAW HAD SIGNED CONCESSIONARY AGREEMENTS WITH CERTAIN SUPPLIERS HE SAID LOWER WAGES WERE A BAD IDEA SINCE THEY RESULTED IN A LOWER STANDARD OF LIVING FOR WORKERS THAT'S NOT A WISE THING FOR AN UPWARDMOVING SOCIETY HE SAID HOWEVER GM'S PUSH FOR LOWER WAGES IN ITS PARTS OPERATIONS GOES AGAINST UAW TRADITION SINCE ITS BEGINNINGS IN THE 1930S THE UNION HAS INSISTED ON EQUAL WAGES FOR ALL PRODUCTION WORKERS AT THE BIG THREE US AUTO MAKERS IT'S NO ACCIDENT THAT THE UAW'S MOTTO IS SOLIDARITY FOREVER HARLEY SHAIKEN A LABOR SPECIALIST AT THE UNIVERSITY OF CALIFORNIA AT SAN DIEGO SAID GM WILL HAVE A HARD TIME WINNING INCREASED PRODUCTIVITY AND LOWER WAGES FOR PARTS WORKERS AT THE SAME TIME SOME INDUSTRIES EXPERIMENTED WITH TWOTIER WAGES IN THE 1980S NOTABLY THE AIRLINE INDUSTRY BUT MANY COMPANIES HAVE SINCE BACKED AWAY FROM TWOTIER WAGES BECAUSE THEY ARE SO DIVISIVE HE SAID THEY BASICALLY DIDN'T WORK ALL THAT WELL MR SHAIKEN SAID 9306240022 930624 BUSINESS BRIEFS JACOBS ENGINEERING GROUP INC RECEIVED A 35 MILLION CONTRACT FROM TOSCO CORP TO DESIGN AND BUILD A METHYL TERTIARY BUTYL ETHER UNIT AT TOSCO'S MARTINEZ CALIF REFINERY ECC INTERNATIONAL CORP RECEIVED A 31 MILLION CONTRACT FROM THE ARMY TO DESIGN AND MANUFACTURE BATTLE TANK MAINTENANCE TRAINING SIMULATORS AND TO DEVELOP A MULTIMEDIA COMPUTERBASED MAINTENANCE TRAINING SYSTEM FOR THE SAUDI ARABIAN ARMY ELECTRONIC DATA SYSTEMS CORP A UNIT OF GENERAL MOTORS CORP RECEIVED A CONTRACT FROM TELEFONICA DE ESPANA SA TO PROVIDE A NEW BILLING AND COLLECTIONS SYSTEM TERMS WEREN'T DISCLOSED LIBBEY INC PURCHASED CERTAIN ASSETS OF LIBBEY ST CLAIR LTD TERMS WEREN'T DISCLOSED WACKENHUT CORP'S WACKENHUT SERVICES UNIT RECEIVED A 320 MILLION FIVEYEAR CONTRACT TO PROVIDE PARAMILITARY SECURITY SERVICES FOR A US DEPARTMENT OF ENERGY NUCLEAR PLANT IN SOUTH CAROLINA AVNET INC SIGNED A LETTER OF INTENT TO ACQUIRE ADELSY A UNIT OF GENERALMUSIC SPA COMCAST CORP PLANS TO BUY THE REMAINING SHARES OF ITS 92OWNED SUBSIDIARY COMCAST CABLEVISION OF PHILADELPHIA INC FOR 122 MILLION OR 90 A SHARE 9306240021 930624 CORRECTIONS & AMPLIFICATIONS THE AMERICAN STOCK EXCHANGE SHORT INTEREST SUMMARY PRINTED IN TUESDAY'S EDITIONS INCLUDED SOME MISIDENTIFIED REVISIONS FOR MAY DUE TO A DATAPROCESSING ERROR AT THE EXCHANGE A COMPLETE CORRECTED TABLE APPEARS IN TODAY'S ISSUE THE JUNE TOTALS WERE CORRECT BROKEN HILL PROPRIETARY CO HAS A 51 STAKE IN A JOINT VENTURE WITH DIA MET MINERALS LTD AN ARTICLE TUESDAY INCORRECTLY STATED THAT BROKEN HILL HAS A 51 INTEREST IN DIA MET 9306240020 930624 BUSINESS BRIEF READRITE CORP COMPANY MAY REPORT LOSS FOR ITS FISCAL THIRD QUARTER READRITE CORP SAID CONTINUED WEAKNESS IN THE DISKDRIVE INDUSTRY WILL DEPRESS REVENUE FOR ITS THIRD FISCAL QUARTER ENDING THIS MONTH BELOW THE 150 MILLION REPORTED IN ITS FISCAL SECOND QUARTER WHILE REVENUE WILL EXCEED THE 106 MILLION REPORTED FOR LAST YEAR'S THIRD QUARTER READRITE SAID IT MAY POST A LOSS FOR THE CURRENT PERIOD THE MILPITAS CALIF MAGNETIC RECORDING HEADS SUPPLIER WARNED IT EXPECTS WEAK DEMAND TO PERSIST FOR SOME TIME BUT SAID INVESTMENTS IN TECHNOLOGY SHOULD POSITION IT TO EMERGE FROM THE CURRENT TURMOIL IN A STRONGER POSITION ITS STOCK CLOSED AT 9875 DOWN 375 CENTS IN OVERTHECOUNTER TRADING YESTERDAY 9306240019 930624 MARKETING & MEDIA TIME WARNER SYNDICATING ENTERTAINMENT NEWS SHOW NEW YORK TIME INC AND WARNER BROS UNVEILED A NEW SYNDICATED ENTERTAINMENT NEWS TELEVISION PROGRAM THAT WILL BE THE FIRST MAJOR PROGRAMMING ALLIANCE BETWEEN TWO TIME WARNER INC DIVISIONS SINCE THE COMPANIES MERGED IN 1989 ENTERTAINMENT NEWS TELEVISION A SIXDAYAWEEK PROGRAM TO BE LAUNCHED IN THE FALL OF 1994 WILL USE INFORMATION PROVIDED BY THE TIME INC MAGAZINES INCLUDING TIME PEOPLE ENTERTAINMENT WEEKLY SPORTS ILLUSTRATED AND LIFE AND WILL BE SYNDICATED BY WARNER BROS DOMESTIC TELEVISION DISTRIBUTION THE SHOW HAS ALREADY BEEN SOLD FOR THE PERIOD LEADING UP TO PRIME TIME ON WNBC IN NEW YORK AND KNBC IN LOS ANGELES BOTH OWNED BY GENERAL ELECTRIC CO'S NBC 9306240018 930624 BUSINESS BRIEF SEALRIGHT CO SECONDQUARTER EARNINGS EXPECTED TO TRAIL '92 PACE SEALRIGHT CO SAID SECONDQUARTER EARNINGS ARE EXPECTED TO FALL TO BETWEEN 40 CENTS AND 45 CENTS A SHARE FROM THE RECORD 64 CENTS A SHARE A YEAR EARLIER SEALRIGHT ALSO SAID IT EXPECTS SALES TO TOP THE 722 MILLION OF A YEAR EARLIER BECAUSE OF THE DECEMBER 1992 ACQUISITION OF VENTURE PACKAGING BUT WITHOUT VENTURE PACKAGING REVENUE SALES IN BOTH ITS RIGID AND FLEXIBLE PACKAGING DIVISIONS TRAIL LAST YEAR 9306240017 930624 POLITICS & POLICY SENATE REJECTS BID TO ADD TAX BREAKS TO DEFICIT BILL BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE REJECTED TWO TAX BREAKS FOR SMALL BUSINESSES WHICH DEMOCRATIC LEADERS HAD TRIED TO ATTACH TO A DEFICITREDUCTION PACKAGE TO SECURE SUPPORT FROM SOME RESTIVE PARTY MEMBERS THE SENATE VOTED 5444 YESTERDAY FOR THE LEADERSHIP AMENDMENT BUT THAT WAS SHORT OF THE 60 VOTES NEEDED TO OVERCOME REPUBLICANS' PARLIAMENTARY OBJECTION THE AMENDMENT WOULD HAVE ADDED PRESIDENT CLINTON'S PROPOSAL TO HALVE CAPITALGAINS TAXES FOR INVESTORS IN SOME SMALL BUSINESSES AND WOULD HAVE EXPANDED THE BILL'S PROPOSED WRITEOFF FOR SMALL BUSINESSES' EQUIPMENT PURCHASES IT WAS THE CAPITALGAINS PROVISION THAT GAVE RISE TO THE PARLIAMENTARY OBJECTION BECAUSE IT WAS RULED NOT GERMANE TO THE BILL DEMOCRATIC LEADERS LATER OFFERED AN AMENDMENT SOLELY TO RAISE THE CURRENT WRITEOFF FOR SMALL BUSINESS INVESTMENTSTO 20500 FROM THE CURRENT 10000BUT SOME LIBERAL DEMOCRATS BLOCKED A VOTE UNTIL TODAY THE SENATE BILL WOULD RAISE THE WRITEOFF TO 15000 AND THE FOES OF A LARGER AMOUNT ARGUED THAT THE PROPOSED BREAK WAS SUFFICIENT FORTY OF THE 43 REPUBLICANS WHO WERE PRESENT VOTED AGAINST THE BROADER AMENDMENT BECAUSE MOST OF THEM SUPPORT THE SUBSTANCE OF THE BUSINESSTAX BREAKS THEIR OPPOSITION WAS A SIGN OF GOP UNITY AGAINST THE DEMOCRATS' ENTIRE EFFORT TO PASS THE ECONOMIC PACKAGE FOUR OF THE 55 DEMOCRATS WHO VOTED ALSO OPPOSED THE AMENDMENT LAST NIGHT THE SENATE ALSO KILLED REPUBLICANS' PLAN TO CUT THE DEFICIT WITHOUT RAISING TAXES ON A MOSTLY PARTYLINE 5543 VOTE THE GOP PLAN WOULD HAVE REDUCED PROJECTED SPENDING FOR ENTITLEMENT PROGRAMS OTHER THAN SOCIAL SECURITY SUCH AS MEDICARE MEDICAID FARM SUBSIDIES AND VETERANS' PAYMENTS AND FROZEN OTHER SPENDING THE RESULT WOULD BE 3665 BILLION IN SAVINGS OVER FIVE YEARS DEMOCRATS CLAIM 516 BILLION FOR THEIR PROGRAM SPLIT BETWEEN SPENDING CUTS AND TAX INCREASES IN A PERVERSE TWIST ON THE PARTIES' WAR OF WORDS OVER THE EXACT AMOUNT OF SPENDING CUTS IN MR CLINTON'S PLAN THE WHITE HOUSE LAST NIGHT GAVE REPUBLICANS' CREDIT FOR 44 BILLION MORE IN SAVINGS THAT REPRESENTS AN AMOUNT THAT DEMOCRATS CLAIM FOR THEIR PACKAGE AND REPUBLICANS DISPUTE BASED ON SAVINGS THAT SPRING FROM THE 1990 BUDGET AGREEMENT MR CLINTON CHASTISED REPUBLICANS SAYING THEIR CLAIMS TO A NOTAX PLAN ARE REALLY NOTHING BUT A SHIELD TO KEEP THE WEALTHIEST AMERICANS FROM PAYING THEIR FAIR SHARE EVEN THOUGH THEIR TAXES WENT DOWN FOR THE LAST 12 YEARS WHILE THE DEFICIT EXPLODED A FINAL VOTE ON THE SENATE DEMOCRATS' BILL COULD OCCUR AS EARLY AS TODAY AS THE SENATE OPENED DEBATE YESTERDAY MAJORITY LEADER GEORGE MITCHELL OF MAINE AND FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY NEGOTIATED THE PROPOSED BREAKS FOR SMALL BUSINESSES WITH SEVERAL WAVERING DEMOCRATS INCLUDING SENS JOSEPH LIEBERMAN OF CONNECTICUT AND HERBERT KOHL OF WISCONSIN WHO SAY THEY WANT ADDITIONAL TAX INCENTIVES FOR BUSINESS IT WASN'T CLEAR WHAT THE DEFEAT OF THEIR AMENDMENT MEANS FOR THE BILL'S PROSPECTS BUT DEMOCRATS CAN'T LOSE MORE THAN A HALFDOZEN OF THEIR 56 VOTES IF THEY'RE TO PASS IT YESTERDAY MAVERICK DEMOCRATIC SEN RICHARD SHELBY OF ALABAMA CONFIRMED EXPECTATIONS THAT HE'LL JOIN REPUBLICANS IN VOTING AGAINST THE BILL THIS IS NOT AN ECONOMIC PLAN HE SAID IN A SENATE SPEECH THIS IS A TAX BILL LATER HE WAS THE ONLY DEMOCRAT TO VOTE FOR THE GOP ALTERNATIVE SEN JIM JEFFORDS OF VERMONT WAS THE ONLY REPUBLICAN TO VOTE AGAINST IT FOR ALL THE LASTMINUTE MANEUVERING BY THE WHITE HOUSE AND SENATE DEMOCRATIC LEADERS MEMBERS IN BOTH PARTIES CONTINUED TO PREDICT THE BILL WILL BE PASSED IT'S GOING TO PASS THE SENATE NO QUESTION ABOUT IT SAID SENATE GOP LEADER ROBERT DOLE OF KANSAS ALL REPUBLICANS HAVE BEEN EXPECTED TO VOTE AGAINST THE BILL REQUIRING NEAR UNANIMITY BY DEMOCRATS BUT ONE REPUBLICAN SEN MARK HATFIELD OF OREGON SAID YESTERDAY I'M NOT COMMITTED TO VOTING AGAINST THE LEGISLATION THE SENATE TODAY IS EXPECTED TO VOTE ON AN AMENDMENT FROM GOP SEN DON NICKLES OF OKLAHOMA THAT WOULD DELETE THE BILL'S 43CENTAGALLON TAX INCREASE ON GASOLINE AND OTHER TRANSPORTATION FUELS THAT TAX WAS INCLUDED IN THE BILL TO RAISE ABOUT 242 BILLION OVER FIVE YEARS MEANWHILE DEMOCRATIC LEADERS CONTINUED TO NEGOTIATE WITH LIBERAL DEMOCRATS WHO DON'T WANT TO REDUCE SPENDING FOR MEDICARE BY 67 BILLION OVER FIVE YEARS AS THE BILL WOULD DO MR CLINTON PROPOSED CUTTING MEDICARE PAYMENTS TO HOSPITALS DOCTORS AND OTHER HEALTHCARE PROVIDERS ABOUT 48 BILLION OVER FIVE YEARS BUT LAST WEEK THE SENATE FINANCE COMMITTEE AGREED TO THE LARGER REDUCTIONS AND THE FUELS TAXTO HELP OFFSET THE REVENUES LOST WHEN THEY KILLED MR CLINTON'S BROAD ENERGY TAX THE SMALLBUSINESS AMENDMENT THAT WAS DEFEATED WOULD HAVE SLASHED THE CAPITALGAINS TAX RATE TO 14 FROM 28 FOR INVESTORS WHO SELL THEIR HOLDINGS IN CERTAIN BUSINESSES AFTER HOLDING THEM AT LEAST FIVE YEARS MR CLINTON MADE THE PROPOSAL IN HIS ECONOMIC PROGRAM BASED ON A MOREGENEROUS VERSION SPONSORED BY HIS FRIEND ARKANSAS SEN DALE BUMPERS THE FINANCE PANEL DECIDED LAST WEEK TO DROP IT BECAUSE OF OPPOSITION FROM SEN BILL BRADLEY D NJ BUT THE PROVISION IS PART OF THE HOUSEPASSED BILL SO IT WILL BE A SUBJECT OF HOUSESENATE NEGOTIATIONS ON A FINAL MEASURE IN DEBATE YESTERDAY SEN BRADLEY SAID THE PROVISION WOULDN'T HELP MOST TYPES OF SMALL BUSINESSES AND THAT ITS ESTIMATED COST OF ALMOST 1 BILLION OVER FIVE YEARS THE PERIOD BEING USED FOR BUDGETARY PROJECTIONS DRASTICALLY UNDERSTATES THE TAX BREAK'S DRAIN ON THE TREASURY AFTER THAT TIME IT'S A BUDGET GIMMICK BECAUSE IN THE SIXTH YEAR EVERYBODY'S GOING TO BE CASHING IN ON THE 14 RATE HE SAID A LESSNOTICED PART OF THE DEFEATED SMALLBUSINESS AMENDMENT WOULD HAVE BENEFITED SOME THEATERS THE SENATE BILL INCLUDES MR CLINTON'S PROPOSAL TO RAISE 155 BILLION OVER FIVE YEARS BY REDUCING THE AMOUNT THAT BUSINESSES CAN DEDUCT FOR MEALS AND ENTERTAINMENT EXPENSES RESTAURANTS HOTELS AND ENTERTAINMENT CENTERS IN NEW YORK CITY WHICH CHAIRMAN MOYNIHAN REPRESENTS WOULD BE PARTICULARLY HARD HIT SO HE WANTED TO EXEMPT THE COST OF TICKETS TO LIVE PERFORMANCES EVERY THEATER IS A SMALL BUSINESS SEN MOYNIHAN SAID 9306240016 930624 BUSINESS BRIEF FANNIE MAE QUASHES PROPOSAL REPEALING ITS TAX EXEMPTION WASHINGTON THE FEDERAL NATIONAL MORTGAGE ASSOCIATION QUASHED A LEGISLATIVE PROPOSAL THAT WOULD HAVE REPEALED ITS EXEMPTION FROM STATE AND LOCAL TAXES THE HOUSE APPROPRIATIONS COMMITTEE REACTING TO OPPOSITION FROM FANNIE MAE AND HOUSE BANKING CHAIRMAN HENRY GONZALEZ D TEXAS DROPPED A PROVISION APPROVED EARLIER BY ITS DISTRICT OF COLUMBIA SUBCOMMITTEE TO REPEAL FANNIE MAE'S EXEMPTION FROM STATE AND LOCAL TAXES THE DELETED MEASURE WAS INTENDED TO PROVIDE ADDITIONAL REVENUE TO THE FINANCIALLY PRESSED DISTRICT GOVERNMENT THE APPROPRIATIONS PANEL SCRAPPED THE PROPOSAL BY VOICE VOTE AFTER FANNIE MAE CHAIRMAN JAMES JOHNSON WARNED COMMITTEE MEMBERS IN A LETTER THAT IT WOULD SUBJECT FANNIE MAE TO OVER 300 MILLION IN 1993 IN STATE AND LOCAL TAXES AND INCREASE BORROWING COSTS FOR HOME BUYERS REP GONZALEZ WHOSE COMMITTEE HAS HOUSE JURISDICTION OVER FANNIE MAE WROTE TO THE APPROPRIATIONS COMMITTEE IN OPPOSITION TO THE PROPOSAL THE SCRAPPED PROVISION ALSO WOULD HAVE APPLIED TO THE STUDENT LOAN MARKETING ASSOCIATION WHICH LET FANNIE MAE CARRY THE BRUNT OF THE BATTLE AGAINST THE MEASURE FANNIE MAE AND SALLIE MAE BOTH HAVE HEADQUARTERS IN THE DISTRICT OF COLUMBIA BOTH ARE SHAREHOLDEROWNED CONGRESSIONALLY CHARTERED COMPANIES AND BOTH ARE HIGHLY PROFITABLE WHILE INTENDED TO BENEFIT THE DISTRICT OF COLUMBIA THE PROVISION ALSO WOULD HAVE CAUSED FANNIE MAE AND SALLIE MAE TO PAY TAXES IN OTHER JURISDICTIONS FANNIE MAE FOR INSTANCE HAS FIVE REGIONAL HEADQUARTERS IN ADDITION TO ITS DISTRICT OFFICES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY FANNIE MAE SHARES ROSE 875 CENTS TO 8150 SALLIE MAE SHARES FELL 125 CENTS TO 40 9306240015 930624 TECHNOLOGY & SCIENCE MOTOROLA TOSHIBA JOINT VENTURE PLANS TO BUILD CHIP PLANT A WALL STREET JOURNAL ROUNDUP MOTOROLA INC AND TOSHIBA CORP SAID THEIR JOINT VENTURE COMPANY PLANS TO BUILD A 727 MILLION PLANT IN SENDAI JAPAN TO MAKE MEMORY CHIPS THE 12ACRE FACILITY WHICH IS SCHEDULED FOR COMPLETION IN 1995 WILL PRODUCE 16K DRAMS OR DYNAMIC RANDOMACCESS MEMORY CHIPS THE JOINT VENTURE WILL ADD 400 EMPLOYEES TO STAFF THE PLANT BRINGING TOTAL EMPLOYMENT TO ABOUT 1300 THE TWO COMPANIES SAID THE JOINT VENTURE TOHOKU SEMICONDUCTOR CORP WAS ESTABLISHED IN 1987 AND NOW EMPLOYS 920 PEOPLE IT CURRENTLY MAKES NINE MILLION ELECTRONIC COMPONENTS MONTHLY INCLUDING DRAMS MICROPROCESSORS AND MICROCONTROLLERS WHILE ROYALTY ARRANGEMENTS REMAIN CONFIDENTIAL SHAUMBURG ILLBASED MOTOROLA SAID IT WILL PAY ROYALTIES TO TOSHIBA IN EXCHANGE FOR RECEIVING HALF OF THE OUTPUT OF 16K DRAMS FROM THE JOINT VENTURE TOSHIBA HEADQUARTERED IN TOKYO WILL SUPPLY PRODUCTION TECHNOLOGY TO THE JOINT VENTURE INITIALLY THE NEW FACILITY WILL HAVE A PRODUCTION CAPACITY OF THREE MILLION UNITS BUT THE PARTNERS SAID THE PLANT'S ACTUAL OUTPUT WILL BE IN THE HUNDREDS OF THOUSANDS OF UNITS DEPENDING ON CUSTOMER DEMAND TOHOKU SEMICONDUCTOR WILL MAKE THE PRODUCTS IN WAFER FORM WHILE TOSHIBA AND MOTOROLA WILL BE RESPONSIBLE FOR FINAL ASSEMBLY OF THE MEMORY CHIPS TOSHIBA AND MOTOROLA SAID THE NEW PLANT MAY EVENTUALLY EXPAND FROM MANUFACTURING MEMORY INTO LOGIC CHIPS BUT THEY SIDESTEPPED QUESTIONS ABOUT JOINTVENTURE PRODUCTION OF SUCH STRATEGIC NEW PRODUCTS AS POWERPC RISC BASED MICROPROCESSORS SAYING IN A STATEMENT THAT NOTHING HAS BEEN DECIDED AT THIS STAGE 9306240013 930624 POLITICS & POLICY CANADIAN SENATE GIVES APPROVAL TO TRADE PACT BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA THE NORTH AMERICAN FREE TRADE AGREEMENT CLEARED ITS FINAL CANADIAN LEGISLATIVE HURDLE WINNING APPROVAL OF THE SENATE THE ACCORD STILL NEEDS TO BE SANCTIONED BY THE US AND MEXICAN LEGISLATURES THE OUTLOOK FOR APPROVAL BY THE US CONGRESS IS UNCERTAIN THE CANADIAN SENATE VOTED 47 TO 30 IN FAVOR OF A BILL TO IMPLEMENT THE TRADE PACT WHICH IS TO TAKE EFFECT JAN 1 THE HOUSE OF COMMONS PASSED THE SAME BILL LAST MONTH THE LEGISLATION HAS BEEN A MAJOR PRIORITY OF PRIME MINISTER BRIAN MULRONEY WHO IS SCHEDULED TO RETIRE TOMORROW THE BILL WAS INTRODUCED IN PARLIAMENT JUST TWO MONTHS AFTER IT WAS SIGNED IN DECEMBER BY FORMER US PRESIDENT BUSH MR MULRONEY AND MEXICAN PRESIDENT CARLOS SALINAS THE AGREEMENT IF RATIFIED WILL PHASE OUT MOST TRADE BARRIERS AMONG THE THREE COUNTRIES CREATING A NORTH AMERICAN MARKET OF 360 MILLION PEOPLE THE CANADIAN GOVERNMENT PUSHED THE IMPLEMENTING BILL THROUGH PARLIAMENT DESPITE CANADIAN AND MEXICAN DIFFERENCES WITH THE US OVER PROPOSED SIDE ACCORDS DEALING WITH ENVIRONMENTAL AND LABOR STANDARDS IN THE THREE COUNTRIES PRESIDENT CLINTON IN KEEPING WITH AN ELECTION PLEDGE HAS SAID HE WON'T SUBMIT THE NAFTA TO CONGRESS UNLESS HIS ADMINISTRATION IS ABLE TO NEGOTIATE EFFECTIVE LABOR AND ENVIRONMENTAL SIDE ACCORDS LOWELL MURRAY GOVERNMENT LEADER IN THE SENATE SAID CANADA REMAINS OPPOSED TO A US DEMAND THAT THE SIDE ACCORDS INCLUDE TRADE SANCTIONS TO ENSURE THAT THE THREE COUNTRIES ENFORCE THEIR LABOR AND ENVIRONMENTAL STANDARDS US CRITICS OF THE FREE TRADE PACT CLAIM THAT UNLESS MEXICO IN PARTICULAR IS REQUIRED TO ENFORCE ITS LABOR AND ENVIRONMENTAL LAWS US COMPANIES WILL TEND TO SHIFT THEIR OPERATIONS THERE TO TAKE ADVANTAGE OF LAX REGULATION SEN MURRAY SAID THE PROPOSED US SANCTIONS WOULD BE COUNTERPRODUCTIVE TO AVOID SUCH SANCTIONS A COUNTRY WOULD TEND TO STICK WITH EASYTOENFORCE LOW STANDARDS RATHER THAN DEVELOPING MORE RIGOROUS ONES HE SAID THE TRADE AGREEMENT IS EXPECTED TO BE A MAJOR ISSUE IN THE NEXT CANADIAN ELECTION WHICH MUST BE HELD BY NOVEMBER WE NOW HAVE A VERY CLEAR ELECTION BATTLE AHEAD OF US ON NAFTA SAID MAUDE BARLOW A LEADER OF AN ANTINAFTA COALITION KIM CAMPBELL WHO WILL SUCCEED MR MULRONEY AS PRIME MINISTER TOMORROW IS A STRONG SUPPORTER OF THE TRADE PACT BUT CANADIANS GENERALLY REMAIN COOL TOWARD IT A RECENT OPINION POLL SHOWED ABOUT 58 OPPOSED TO THE AGREEMENT 39 IN FAVOR AND THE REMAINDER UNSURE THE OPPOSITION LIBERAL PARTY REAFFIRMED THAT THE LIBERALS WILL SEEK CHANGES TO THE AGREEMENT IF THEY WIN THIS FALL'S ELECTION THE LIBERALS WANT THE AGREEMENT STRENGTHENED TO INCLUDE DUMPING AND SUBSIDY CODES AND A MORE EFFECTIVE MECHANISM FOR RESOLVING TRADE DISPUTES THE CANADIAN LEGISLATION TO IMPLEMENT THE AGREEMENT INCLUDES A CLAUSE THAT BEFORE THE ACT CAN BE PROCLAIMED INTO LAW THE US AND MEXICO MUST ALSO PASS SIMILAR LEGISLATION 9306240012 930624 US BANKNOTE PURCHASE NEW YORK US BANKNOTE CORP SAID IT COMPLETED ITS ACQUISITION OF BRAZILIAN SECURITY PRINTER THOMAS DE LA RUE GRAFICA E SERVICOS LTDA FOR 45 MILLION IN CASH AND COMMON STOCK US BANKNOTE IS A PRINTER OF SECURITY DOCUMENTS SUCH AS STOCK CERTIFICATES FOOD COUPONS AND POSTAGE STAMPS 9306240011 930624 ENTERPRISE LAWMAKERS SEEK MORE RTC BUSINESS FOR MINORITIES STRICT PROVISION ON DISTRIBUTION OF CONTRACTS IS INSERTED IN HOUSE FUNDING BILL BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ARE MINORITYOWNED BUSINESSES GETTING A FAIR SHAKE IN THE CONTINUING CLEANUP OF THE SAVINGSANDLOAN INDUSTRY THAT MAY BE THE TRICKIEST ISSUE WHEN THE HOUSE TAKES UP FINAL FUNDING FOR THE RESOLUTION TRUST CORP THE GOVERNMENT'S S&L GRAVEYARD A VOTE IS EXPECTED WITHIN A FEW WEEKS PRESSURED BY THE CLINTON ADMINISTRATION THE RTC HAS RECENTLY BECOME MORE VIGOROUS ABOUT EXTENDING CONTRACTS TO MINORITY AND WOMENOWNED COMPANIES BUT CRITICS IN CONGRESS CONTEND THAT COMPANIES OWNED BY WHITE WOMEN RECEIVE AN INORDINATE SHARE OF THE AGENCY'S CONTRACTS AIMED AT MINORITIES AND WOMEN COMPANIES OWNED BY WHITE WOMEN RECEIVED 27 OF THE RTC'S CONTRACTS DURING THE FIRST FIVE MONTHS OF 1993 EVEN THOUGH ONLY SLIGHTLY MORE COMPANIES OWNED BY WHITE WOMEN THAN MINORITY CONCERNS HAVE REGISTERED AS POTENTIAL CONTRACT SEEKERS MINORITYOWNED COMPANIES GOT 13 OF THOSE CONTRACTS BLACK AND HISPANICOWNED BUSINESSES DID GARNER A SLIGHTLY HIGHER PROPORTION OF THE FEES HOWEVER THE CONTRACTS PRIMARILY COVER FINANCIAL AND ASSET ANALYSIS AND MANAGEMENT OF FAILED THRIFTS BLACK AND HISPANIC HOUSE MEMBERS HAVE SUCCESSFULLY PUSHED FOR ADDITIONAL LANGUAGE IN THE RTC FUNDING BILL THAT WOULD REQUIRE WOMEN AND MINORITY CONTRACTS TO BE SPREAD MORE EVENLY BETWEEN THOSE GROUPS THE RTC HAS PROVEN ITSELF UNABLE TO KEEP UP WITH WHAT THEY TELL CONGRESS THEY WILL DO ABOUT GIVING CONTRACTS TO MINORITYOWNED BUSINESSES SAYS REP MAXINE WATERS A BLACK DEMOCRATIC LAWMAKER FROM CALIFORNIA IT HAS BEEN VERY TOUGH TO RELY ON THEM SIMPLY TO DO THE RIGHT THING SHE ADDS THE HOUSE MEASURE WOULD FORCE THE RTC TO WRITE GUIDELINES FOR ACHIEVING REASONABLY EVEN DISTRIBUTION OF CONTRACTS BETWEEN VARIOUS SUBGROUPS SUCH AS WOMEN BLACKS AND HISPANICS A ROUGHLY EQUAL ALLOTMENT OF CONTRACTS WOULD HAVE TO BE MADE TO ANY SUBGROUP THAT ACCOUNTS FOR AT LEAST 5 OF ALL COMPANIES REGISTERED WITH THE AGENCY THE BILL ALSO WOULD IMPOSE SANCTIONS ON PRIME CONTRACTORS THAT VIOLATE JOINTVENTURE AND SUBCONTRACTING REQUIREMENTS INVOLVING THE USE OF MINORITY COMPANIES THE SENATE VERSION OF THE RTC FUNDING BILL DOESN'T CARRY SUCH LANGUAGE LUCILLE DOBBINS CHIEF EXECUTIVE OF RESOLUTION RESOURCES A BLACKOWNED FINANCIAL MANAGEMENT AND CONSULTING FIRM FORMED TO DO BUSINESS THE RTC SAYS THE AGENCY ISN'T DOING ALL IT MIGHT BE FOR MINORITYOWNED BUSINESSES THE CHICAGO COMPANY HAS GOTTEN SOME WORK HELPING TO MANAGE THE AGENCY'S FAILED S&LS BUT NOT AS MUCH AS SHE WOULD LIKE SHE DECLINES TO SPECIFY THE AMOUNT OF HER RTC WORK WHILE SEEING SOME IMPROVEMENT RECENTLY MS DOBBINS SAYS THAT RTC OFFICIALS HAVE NOT PUT OUT THE AMOUNT OF EFFORT TO INVOLVE THE MINORITY COMMUNITY THAT THEY SHOULD HAVE SOME RTC OFFICIALS ALSO APPEAR TO FAVOR GIVING MORE CONTRACTS TO MINORITYOWNED BUSINESSES LAST YEAR THE AGENCY SET A GOAL OF AWARDING 30 OF ITS CONTRACTS TO BUSINESSES OWNED BY WOMEN OR MINORITIES THE RTC REPORTS THAT GOAL HAS BEEN EXCEEDED LATELY BUT JOHNNIE BOOKER A BLACK WOMAN RECENTLY PROMOTED TO RTC VICE PRESIDENT FOR MINORITY WOMEN'S PROGRAMS HAS SAID THAT SHE MAY RECOMMEND A GOAL OF 20 FOR MINORITIES ALONE THE CLINTON ADMINISTRATION AND THE DEMOCRATIC HOUSE LEADERSHIP NEED BLACK AND HISPANIC VOTES TO PASS THE RTC MEASURE THEY WORRY THAT THE MINORITYCONTRACTING PROVISIONS COULD HELP TO DEFEAT THE LEGISLATION ON THE HOUSE FLOOR HOWEVER OPPONENTS ARGUE THAT THIS APPROACH WOULD SNARL THE RTC IN DE FACTO QUOTAS WITHIN QUOTAS REP STEPHEN NEAL D NC CHAIRMAN OF THE HOUSE BANKING COMMITTEE'S FINANCIAL INSTITUTIONS SUBCOMMITTEE RECENTLY SAID HE FAVORED THE GOALS OF THE PROVISIONS BUT DIDN'T WANT TO INSPIRE OPPOSITION FROM A NUMBER OF PEOPLE WHO WOULD BE AUTOMATICALLY OPPOSED TO ANYTHING THAT HAD QUOTAS OVERALL THE RTC IS GIVING A RISING SHARE OF CONTRACTS TO MINORITY AND WOMENOWNED COMPANIES IN THE FIRST FIVE MONTHS OF THIS YEAR 41 OF ITS AWARDS AND 36 OF ITS FEES WENT TO SUCH COMPANIES UP FROM 34 AND 29 RESPECTIVELY IN ALL OF 1992 A RECENT REPORT FROM THE CONGRESSIONAL GENERAL ACCOUNTING OFFICE NOTED SIGNIFICANT GAINS IN RTC EFFORTS TO AWARD CONTRACTS TO COMPANIES OWNED BY MINORITIES AND WOMEN THE REPORT PRAISED THE AGENCY FOR CREATING A SPECIFIC OFFICE TO PUSH THIS PROGRAM AND FOR SETTING SPECIFIC GOALS BUT KEY AREAS STILL NEED IMPROVEMENT THE GAO SAID SEPARATELY MINORITIES AND WOMENOWNED UNDERWRITERS HAVE COLLECTED 13 MILLION IN FEES SINCE THE RTC'S MORTGAGELOAN SECURITIZATION PROGRAM BEGAN TWO YEARS AGO THAT REPRESENTS 5 OF THE AMOUNTS PAID TO LARGE NONMINORITY COMPANIES THE AGENCY SAYS MINORITYOWNED CONCERNS CITE OTHER REASONS THEY HAVE TROUBLE DEALING WITH THE RTC BESIDES ITS PURPORTED UNFAIR ALLOTMENT OF CONTRACTS TO WHITE WOMEN IT'S HARD TO TELL WHEN SOMETHING WOULD WORK WITH THE RTC AND WHEN IT WOULDN'T WORK SAYS DANIEL LEMAUTE PRINCIPAL OWNER OF LEMAUTE FINANCIAL GROUP AN ASSETMANAGEMENT COMPANY IN LOS ANGELES MR LEMAUTE WHO IS BLACK WORKED FOR THE RTC WHEN IT WAS FORMED IN 1989 BUT SAYS HIS COMPANY HAS BEEN ABLE TO GET RTC BUSINESS ONLY SPORADICALLY ANOTHER PROBLEM IS THAT THE RTC HAS BEEN POOLING ASSETS AND SELLING THEM OFF IN HUGE PACKAGES OFTEN LIMITING THE PLAYERS TO LARGER FINANCIAL HOUSES WHICH AREN'T OWNED BY MINORITIES OR WOMEN NAPOLEON BRANDFORD VICE CHAIRMAN AND A BLACK OWNER OF GRIGSBY BRANDFORD & CO A SAN FRANCISCO INVESTMENT BANKING FIRM SAYS HE TRIED TO GET THE RTC TO BREAK UP A 480 MILLION JUNKBOND DEAL INTO SMALL PIECES SO HIS FIRM COULD GET ONE PIECE THE AGENCY STUCK WITH ITS ORIGINAL PLAN AFTER AT LEAST 10 TRIPS TO WASHINGTON AND SPENDING 50000 ON A PROPOSAL HE SAYS HE LOST OUT TO SALOMON BROS SO HE QUIT TRYING 9306240010 930624 MARKETING & MEDIA FCC DELAYS VOTE ON FORCING CABLE TO CARRY SHOPPING BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION IN AN UNUSUAL ELEVENTHHOUR MOVE POSTPONED A VOTE ON THE CONTENTIOUS ISSUE OF WHETHER CABLE TELEVISION SYSTEMS SHOULD BE REQUIRED TO CARRY HOMESHOPPING STATIONS THE VOTE WAS SET FOR TODAY BUT THE DELAY IS EXPECTED TO BE BRIEF UNDER THE 1992 CABLE ACT THE FCC MUST MAKE A DECISION BY JULY 2 THE COMMISSION HAD BEEN LEANING TOWARD GIVING SHOPPING STATIONS THE SAME RIGHTS TO BE CARRIED ON LOCAL CABLE SYSTEMS AS MORE TRADITIONAL BROADCASTERS THE ISSUE FORCES THE FCC TO RULE WHETHER HOMESHOPPING STATIONS SERVE THE PUBLIC INTEREST IF THE FCC DECIDES THEY DON'T SUCH CHANNELS WILL HAVE TO CHANGE THEIR FORMATS AND OFFER OTHER PROGRAMMING OR RISK HAVING THEIR LICENSES PULLED THE COMMISSION REMOVED THE ISSUE FROM THE AGENDA FOLLOWING A REQUEST BY COMMISSIONER ERVIN DUGGAN WHO SAID HE WASN'T EAGER TO MAKE A SHALLOW JUDGMENT ON SUCH A DEEP QUESTION FCC CHAIRMAN JAMES QUELLO SAID THE VOTE WAS DELAYED NOT ONLY WITH MY APPROVAL BUT ALSO MY APPRECIATION WE NEED TO GIVE IT MORE THOUGHT AS LAST YEAR'S CABLE LEGISLATION MOVED THROUGH CONGRESS MANY LAWMAKERS EXPRESSED DISSATISFACTION WITH FCC DECISIONS THAT LET HOMESHOPPING STATIONS USE THE SCARCE AIRWAVES THE FCC RULING COULD AFFECT DOZENS OF BROADCASTERS MOST OF WHOM CARRY PROGRAMMING FROM HOME SHOPPING NETWORK INC WHICH HAS BEEN AT THE CENTER OF ITS OWN CONTROVERSY IN RECENT WEEKS CURRENT AND FORMER EXECUTIVES OF THE ST PETERSBURG FLA COMPANY HAVE BEEN IMPLICATED IN NUMEROUS LAWSUITS ALLEGING FINANCIAL MISDEEDS SOME OF THESE BROADCASTERS RELY ON HOME SHOPPING AS AN INEXPENSIVE SOURCE OF PROGRAMMING AND CONTEND IT IS THE ONLY WAY THEY CAN AFFORD TO REMAIN ON THE AIR CABLE SYSTEMS THAT OPT TO CARRY HOME SHOPPING RECEIVE A FEE USUALLY ABOUT 5 OF THE VALUE OF THE PRODUCTS SOLD SILVER KING COMMUNICATIONS A COLLECTION OF 12 UHF TV STATIONS RECENTLY SPUN OFF FROM HOME SHOPPING NETWORK STANDS TO GAIN THE MOST IF THE FCC GIVES SHOPPING STATIONS THE RIGHT TO BE CARRIED ON CABLE SYSTEMS SILVER KING IN WHICH HOME SHOPPING NETWORK CHAIRMAN ROY SPEER HAS EFFECTIVE VOTING CONTROL REACHES ABOUT 28 MILLION HOUSEHOLDS IN MAJOR METROPOLITAN AREAS COMMISSIONER DUGGAN IN A STATEMENT SAID THE EFFECT OF THE DECISION WILL STRETCH WELL BEYOND HOME SHOPPING SERVICES I BELIEVE OUR DECISION COULD HAVE A FUNDAMENTAL LONGTERM IMPACT ON THE COMMISSION'S ABILITY TO DEFINE THE PUBLIC INTEREST IN REGULATING BROADCASTING GENERALLY HE ALSO QUESTIONED WHETHER THE FCC'S CONCEPT OF THE PUBLIC INTEREST HAS BECOME SO DENATURED SO ATTENUATED THAT VIRTUALLY ANYTHING GOES THAT POINT WAS UNDERSCORED IN A LETTER TO MR QUELLO FROM REP JOHN DINGELL CHAIRMAN OF THE HOUSE ENERGY AND COMMERCE COMMITTEE WHO PUSHED FOR TOUGHER PUBLICINTEREST STANDARDS THE MICHIGAN DEMOCRAT SAID HE HAS LONG HELD THAT PERMITTING THIS USE OF SCARCE RADIO SPECTRUM MAKES A MOCKERY OF THE PUBLIC INTEREST RESPONSIBILITIES THAT ARE EMBODIED IN THE COMMUNICATIONS ACT THE COMMISSION HE WARNED WON'T FULFILL ITS OBLIGATIONS UNDER THE 1992 CABLE ACT IF IT DECIDES THESE STATIONS MEET THE CURRENT STANDARDS FOR NEWS PUBLIC AFFAIRS AND CHILDREN'S PROGRAMMING 9306240007 930624 BUSINESS BRIEF CHICO'S FAS INC APPAREL RETAILER TO REPORT HIGHER SECONDQUARTER NET CHICO'S FAS INC EXPECTS TO REPORT SECONDQUARTER EARNINGS OF ABOUT 17 CENTS TO 18 CENTS A SHARE JEFFREY J ZWICK PRESIDENT SAID THE FORT MYERS FLA WOMEN'S APPAREL RETAILER WHICH WENT PUBLIC IN MARCH HAD PROFORMA NET INCOME OF 13 CENTS A SHARE IN THE YEAREARLIER QUARTER ANALYSTS HAVE BEEN ESTIMATING EARNINGS OF ABOUT 16 CENTS A SHARE FOR THE QUARTER ENDING JULY 4 FOR ALL OF 1993 CHICO'S WILL LIKELY REPORT EARNINGS OF ABOUT 95 CENTS TO 1 A SHARE MR ZWICK SAID IN AN INTERVIEW COMPARED WITH PROFORMA EARNINGS OF 69 CENTS A SHARE IN 1992 ANALYSTS HAVE BEEN ESTIMATING 1993 EARNINGS OF ABOUT 90 CENTS A SHARE SALES IN 1993 ARE EXPECTED TO EXCEED 42 MILLION MR ZWICK SAID COMPARED WITH 325 MILLION LAST YEAR OUR FIRST TWO QUARTERS HAVE BEEN OUTSTANDING AND OUR MERCHANDISING DIRECTION IS MUCH IMPROVED OVER LAST YEAR MR ZWICK SAID THERE'S NO REASON THAT OUR BUSINESS SHOULDN'T CONTINUE AS STRONG FOR THE SECOND HALF OF THE YEAR 9306240006 930624 WHO'S NEWS KEYCORP KEYCORP ALBANY NY JOHN M LANG 59 YEARS OLD WAS NAMED CHIEF CREDIT OFFICER AT THE MULTIREGIONAL BANK HOLDING COMPANY HE REMAINS EXECUTIVE VICE PRESIDENT AND CHAIRMAN OF THE CORPORATE CREDIT POLICY COMMITTEE IN ADDITION MICHAEL A BUTLER 34 SENIOR VICE PRESIDENT CORPORATE CREDIT MANAGEMENT DIVISION WILL OVERSEE ALL FUNCTIONS OF LOAN REVIEW AND ITS STAFF THESE CHANGES COME IN THE WAKE OF THE APPOINTMENT OF JAMES P MENZIES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE KEY BANK OF NEW YORK UNIT MR MENZIES HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT OFFICER OF KEYCORP 9306240005 930624 BUSINESS BRIEF KROGER CO GROCERY CHAIN PLANS CHARGE TO PULL OUT OF SAN ANTONIO KROGER CO SAID IT WILL TAKE A 10 MILLION TO 15 MILLION CHARGE IN ITS SECOND QUARTER TO WITHDRAW FROM THE SAN ANTONIO MARKET WHERE IT HAS BEEN UNABLE TO REACH AN AGREEMENT WITH 2000 EMPLOYEES IN ITS 15 SUPERMARKETS THE CINCINNATI COMPANY SAID SAN ANTONIO HAS BEEN A MARGINAL MARKET AMID STRONG COMPETITION KROGER SAID IT WILL CONTINUE TO OPERATE 148 TEXAS STORES KROGER SAID IT HAD SETTLED MOST OF ITS MAJOR RETAILCLERK CONTRACTS SLATED FOR RENEWAL THIS YEAR WITH PROVISIONS THAT IT SAID WOULD RESULT IN SIGNIFICANT COST REDUCTIONS IN MANY MARKETS IT IS STILL NEGOTIATING WITH SOME STORES IN OHIO INDIANA AND WESTERN COLORADO THE COMPANY SAID THE CONTRACTS CONTAIN PROVISIONS THAT WILL ENABLE IT TO REMAIN COMPETITIVE IN INDIVIDUAL MARKETS AND IN SOME CASES WILL RESULT IN COST REDUCTIONS 9306240004 930624 LAW LEGAL BEAT THOROUGHLY MODERN BATHING SUITS PLEASE LAWYERS AND SPOIL SUMMER BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL SUMMER FUN ISN'T WHAT IT USED TO BE LAWSUITS OVER RECREATIONAL INJURIES HAVE CAUSED A NEAR FREEZE IN A VARIETY OF POPULAR SEASONAL PASTIMES FROM HIGH DIVING AT SWIMMING POOLS TO HORSEBACK RIDING AT SUMMER CAMPS BIG JURY VERDICTS AND CORRESPONDING JUMPS IN LIABILITYINSURANCE COSTS HAVE PRODDED SOME RECREATIONAL OUTFITS TO CLOSE SHOP AND OTHERS TO SHARPLY CURTAIL THE ACTIVITIES THEY OFFER AT THE SAME TIME A GROWING NUMBER OF STATES ARE PASSING LAWS THAT SHIELD SUCH BUSINESSES FROM LIABILITY HOPING TO KEEP UP THE FLOW OF TOURISTS WHO COME FOR OUTDOOR FUN THE LITIGATION IS AFFECTING MANUFACTURERS RETAILERS RENTAL COMPANIES AND CAMPS WHO ARE SOMETIMES SUED JOINTLY IN CASES ALLEGING THAT RECREATIONAL EQUIPMENT WAS NEGLIGENTLY DESIGNED THAT THE ACTIVITY WASN'T PROPERLY SUPERVISED AND THAT PARTICIPANTS WEREN'T WARNED OF ITS DANGERS IT'S GOTTEN A LITTLE OUT OF CONTROL SAYS JOHN FAGAN A TAHOE CITY CALIF LAWYER WHO REPRESENTS SPORTS MANUFACTURERS IT'S A BAD THING TO HAVE PEOPLE HURT BY THESE PRODUCTS BUT IT'S ALSO A BAD THING TO LIMIT THE DISTRIBUTION OF THESE PRODUCTS JUST BECAUSE OF THE FEAR OF BEING SUED IN MARCH A BUCKS COUNTY PA JURY AWARDED DAMAGES OF 800000 AGAINST A CANOE AND INNERTUBE OUTFITTER IN A CASE INVOLVING A MAN WHO DROWNED ON A FAMILY OUTING THE MAN'S FAMILY HAD ARGUED THAT THE DELAWARE RIVER OUTFITTER POINT PLEASANT CANOE RENTAL & SALES INC WAS NEGLIGENT IN SUPERVISING THE TRIP BY FAILING TO PATROL THE RIVER WITH LIFEGUARDS AND OTHER EMERGENCY ASSISTANCE THE SUCCESS OF THE FAMILY'S ARGUMENT IN COURT HAS ALARMED OTHER OUTFITTERS WHO ARE INCREASINGLY WORRYING THAT THEY MAY HAVE TO SPEND PROHIBITIVE SUMS ON RIVERSIDE SAFETY MONITORS TO AVOID LIABILITY PROVIDING LIFEGUARDS ALONG THE RIVER WOULD RAISE THE COST OF A SIXMILE CANOE TRIP TO MORE THAN 87 A PERSON FROM ABOUT 12 SAYS JIM THAXTON EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION OF CANOE LIVERIES AND OUTFITTERS WHO COULD AFFORD TO PAY THAT KIND OF MONEY FOR THAT KIND OF EXPERIENCE MR THAXTON SAYS POINT PLEASANT ASKED THE JUDGE TO REJECT THE VERDICT BUT THE LAWSUIT WAS SETTLED OUT OF COURT EARLIER THIS MONTH BEFORE THE JUDGE COULD RULE TERMS OF THE SETTLEMENT WEREN'T DISCLOSED LIABILITY CONCERNS ALREADY HAVE TAKEN THEIR TOLL ON OTHER FORMS OF SUMMER PLAY RECREATIONAL EQUIPMENT INC A SEATTLE OUTDOORSPORTS RETAILER QUIT RENTING WHITEWATER KAYAKS ABOUT TWO YEARS AGO THE COMPANY STILL SELLS THE KAYAKS BUT DECIDED THAT RENTING THEM POSED TOO HIGH A LIABILITY RISK IN PART BECAUSE RENTERS TEND TO BE LESS EXPERIENCED KAYAKERS THAN ARE PURCHASERS SAYS DAN DUCICH SENIOR VICE PRESIDENT AT RECREATIONAL EQUIPMENT IN VENTURA CALIF CHOUINARD EQUIPMENT LTD ONCE ONE OF THE COUNTRY'S BIGGEST MAKERS OF MOUNTAINCLIMBING PRODUCTS FILED FOR BANKRUPTCYLAW PROTECTION AND CEASED OPERATIONS AFTER SEVERAL BIG PERSONALINJURY SUITS WERE BROUGHT AGAINST IT LAST YEAR RECREATIONAL EQUIPMENT ALSO CONSIDERED DROPPING ITS LINE OF MOUNTAINCLIMBING PRODUCTS MR DUCICH SAYS PLAINTIFFS' LAWYERS CONTEND THAT THE UPSHOT OF THE LITIGATION HAS BEEN TO MAKE SUMMERTIME SAFER THERE'S BEEN A TREMENDOUS IMPROVEMENT IN SAFETY ALL BECAUSE OF THE LAWSUITS SAYS HARRY PHILO A DETROIT LAWYER AT SUMMER CAMPS THAT HAVEN'T ALTOGETHER ABANDONED HORSEBACK RIDING FOR EXAMPLE CAMP DIRECTORS AND THEIR INSURERS ARE REQUIRING INSTRUCTORS TO HAVE MORE EXPERIENCE AND TO MEET HIGHER CERTIFICATION STANDARDS MANY PUBLIC AND PRIVATE SWIMMING POOLS HAVE REMOVED THEIR HIGHDIVING BOARDS ELIMINATING A COMMON SOURCE OF SUMMER INJURIES MOTEL AFTER MOTEL DOESN'T HAVE A DIVING BOARD TODAY WHERE THEY WERE MAKING QUADRIPLEGICS BEFORE SAYS MR PHILO WHO HAS REPRESENTED A NUMBER OF PLAINTIFFS IN SWIMMINGPOOL CASES STILL SOME STATES WORRIED ABOUT THE PROSPECT OF RECREATION COMPANIES GOING OUT OF BUSINESS HAVE PASSED LAWS TO REDUCE THEIR LIABILITY EXPOSURE UNDER A 1991 COLORADO LAW FOR EXAMPLE COMPANIES THAT OFFER GUIDED HORSE AND LLAMA TRIPS ARE NO LONGER LIABLE TO PEOPLE WHO ARE KILLED OR INJURED BY THE INHERENT RISKS OF THOSE ACTIVITIES THE LAW'S INTRODUCTION EXPLICITLY SAYS IT WAS PASSED BECAUSE THE STATE AND ITS CITIZENS DERIVE NUMEROUS ECONOMIC AND PERSONAL BENEFITS FROM HORSE AND LLAMA RIDES THE MISSOURI LEGISLATURE IS CONSIDERING A BILL THAT WOULD PROTECT COMPANIES THAT RENT CANOES KAYAKS AND INNER TUBES BUT MANY LAWYERS AND LEGISLATORS OPPOSE SUCH LAWS ARGUING THAT THEY DEPRIVE UNSUSPECTING VACATIONERS OF THEIR LEGAL RIGHTS WE AS A STATE ARE GETTING THE BENEFIT OF PEOPLE COMING IN AND ENJOYING RECREATIONAL ACTIVITIES BUT UNBEKNOWNST TO PEOPLE IF THEY ARE BUCKED FROM A HORSE THEY MAY HAVE NO REMEDIES WHATSOEVER SAYS MARY EWING A DENVER LAWYER AND THERE MAY BE LEGAL OBJECTIONS AS WELL IN APRIL A WISCONSIN APPEALS COURT THREW OUT A STATE LAW BARRING NEGLIGENCE SUITS AGAINST SUCH NONPROFIT ORGANIZATIONS AS SUMMER CAMPS THE CASE WAS BROUGHT BY A GIRL WHO WAS INJURED WHILE ATTENDING CAMP MINIKANI WHICH IS OPERATED BY THE YOUNG MEN'S CHRISTIAN ASSOCIATION THE COURT RULED THAT THE LAW DIDN'T PROPERLY DEFINE WHICH ORGANIZATIONS WOULD BE EXEMPT FROM LIABILITY THE DECISION BY THE NEW JERSEY TOWN OF SUSSEX TO REPLACE ITS POLICE DEPARTMENT WITH A MUCH CHEAPER PRIVATE SECURITY FORCE IS HEADED FOR COURT THE NEW JERSEY ATTORNEY GENERAL'S OFFICE FILED A LAWSUIT SEEKING A COURT ORDER VOIDING THE TOWN'S CONTRACT WITH THE SECURITY COMPANY THE SUIT CONTENDS THAT ONLY THE STATE CAN BESTOW POLICE POWERS THEREBY PREEMPTING SUSSEX'S ABILITY TO HIRE A PRIVATE SECURITY COMPANY TO PERFORM LAWENFORCEMENT FUNCTIONS SUSSEX WITH A POPULATION OF ABOUT 2200 MADE HEADLINES EARLIER THIS MONTH WHEN IT REPLACED ITS FORMER FOURMEMBER POLICE DEPARTMENT WITH UNIFORMED SECURITY GUARDS EQUIPPED WITH RADIOS HANDCUFFS SEMIAUTOMATIC HANDGUNS AND BATONS THE MOVE TAKEN TO CUT COSTS WAS THE TALK OF LAWENFORCEMENT OFFICIALS NATIONWIDE BECAUSE OF THE LIMITED LEGAL AUTHORITY THAT PRIVATE GUARDS HAVE AND THEIR LIABILITY RISKS SECURITY GUARDS GENERALLY HAVE NO MORE AUTHORITY THAN ORDINARY CITIZENS TO MAKE ARRESTS AND NO POWER AT ALL TO QUESTION DETAIN OR SEARCH PEOPLE MOREOVER STATELICENSED POLICE AS STATE AGENTS ARE IMMUNE FROM SUITS SO LONG AS THEY DON'T ABUSE THEIR POWER OR EXCEED THEIR AUTHORITY BUT PRIVATE SECURITY GUARDS EVEN THOSE HIRED UNDER CONTRACT BY LOCAL GOVERNMENTS ARE GOVERNED BY STATE LIABILITY LAWS THEY CAN BE SUED FOR SIMPLE MISTAKES AND THE COMMUNITIES THAT HIRE THEM CAN BE FORCED TO PAY THE DAMAGES SUSSEX TOWN OFFICIALS HOWEVER SAID THEY ARE ELATED WITH THE RESULTS OF THEIR EXPERIMENT ON THEIR FIRST DAY ON THE JOB GUARDS FROM EXECUTIVE SECURITY & INVESTIGATIVE SERVICES INC TOTOWA NJ WERE CALLED OUT TO HELP ROUND UP A STRAY COW ON ONE OF THE TOWN'S MAIN STREETS OTHER POLICE ACTIONS HAVE INVOLVED BREAKING UP GROUPS OF JUVENILE LOITERERS AND SUMMONING STATE POLICE TO HANDLE A DOMESTIC DISPUTE A LOT OF IT IS PUBLIC RELATIONS SAID THE SUSSEX TOWN ATTORNEY JOSEPH POJANOWSKI SUSSEX PLANS TO ARGUE IN COURT THAT ITS SECURITY GUARDS HAVEN'T BEEN GRANTED POLICE POWERS HE SAID THEIR CONTRACT SAYS SPECIFICALLY THAT THEY ARE NOT TO UTILIZE POLICE POWERS AND THAT ENFORCEMENT OF LAWS IS LIMITED TO THE STATE POLICE AND SHERIFF'S DEPUTIES SAID MAYOR PETER HORVATH ALSO A TOWN FUNERAL DIRECTOR WE'LL SEE THEM IN COURT ROBERT WINTER ASSISTANT STATE ATTORNEY GENERAL COUNTERED THAT THE LENSING AND REGULATING OF POLICE OFFICERS ARE STATE FUNCTIONS AND THAT SUSSEX HAS NO LEGAL AUTHORITY TO HIRE PRIVATE CONTRACTORS TO PROVIDE MUNICIPAL SECURITY THEY MAY SAY IN A CONTRACT THEY'RE NOT REALLY POLICE OFFICERS BUT IN FACT WHAT THE TOWN HAS DONE IS CLOAK THEM WITH SUBSTANTIAL POLICE AUTHORITY SAID MR WINTER A GERMAN INVESTOR WHO ALLEGEDLY TRADED ON INSIDE INFORMATION TAKEN FROM LAW FIRM SKADDEN ARPS SLATE MEAGHER & FLOM PLEADED GUILTY TO OBSTRUCTION OF JUSTICE AND MAKING FALSE STATEMENTS TO THE SECURITIES AND EXCHANGE COMMISSION UNDER A PLEA AGREEMENT WITH THE GOVERNMENT MICHAEL BORLINGHAUS WHO HAS BEEN IN PRISON SINCE HIS ARREST IN MARCH FACES A POSSIBLE PRISON TERM OF 24 TO 30 MONTHS WHEN HE IS SENTENCED IN SEPTEMBER THE GOVERNMENT SAID MR BORLINGHAUS AND OTHERS MADE A PROFIT OF BETWEEN 500000 AND 800000 FROM HIS ALLEGED INSIDER TRADING MAINLY BY BUYING OPTIONS IN NORTON CO BEFORE IT WAS THE SUBJECT OF A 1990 TENDER OFFER BY CIE DE SAINT GOBAIN SA INFORMATION ABOUT THE DEAL WAS MISAPPROPRIATED FROM SKADDEN ARPS BY A FORMER PARALEGAL AT THE NEW YORK LAW FIRM MR BORLINGHAUS WASN'T CHARGED WITH INSIDER TRADING MR BORLINGHAUS HAS BEEN INVESTIGATED FOR HIS INVOLVEMENT IN AN INTERNATIONAL INSIDERTRADING RING THAT HAD SEVERAL SOURCES OF INSIDE INFORMATION AMONG THE RING'S SOURCES WAS A FORMER INTERNATIONAL BUSINESS MACHINES CORP OFFICIAL WHO GOT INFORMATION FROM A COWORKER WHOSE SON WAS A FRIEND OF THE FORMER PARALEGAL THE IBM OFFICIAL HIS COWORKER THE COWORKER'S SON AND THE PARALEGAL PREVIOUSLY PLEADED GUILTY TO CHARGES RELATED TO THE INSIDERTRADING SCHEME DAVID MEISTER THE ASSISTANT US ATTORNEY IN NEW YORK HANDLING THE CASE SAID THE INVESTIGATION CONCERNING INSIDER TRADING INVOLVING INFORMATION MISAPPROPRIATED FROM SKADDEN ARPS IS CONTINUING MILO GEYELIN AND JONATHAN M MOSES CONTRIBUTED TO THIS ARTICLE 9306240003 930624 FINANCING BUSINESS PITTENCRIEFF COMMUNICATIONS INC PITTENCRIEFF COMMUNICATIONS INC DALLAS SAID IT SOLD 46 MILLION COMMON SHARES AT 14 EACH IN AN INITIAL PUBLIC OFFERING THE MOBILE RADIO AND COMMUNICATIONS COMPANY SAID IT WILL USE NET PROCEEDS TO REDUCE DEBT AND FOR WORKING CAPITAL THE LEAD UNDERWRITER FOR THE OFFERING WAS RAYMOND JAMES & ASSOCIATES ST PETERSBURG FLA 9306240002 930624 BUSINESS BRIEF MICHELIN'S NORTH AMERICA UNIT SLATES LAYOFFS OF 2500 OR 9 OF WORK FORCE MICHELIN NORTH AMERICA SAID IT WILL CUT 2500 EMPLOYEES OR 9 OF ITS WORK FORCE A MOVE ANALYSTS ATTRIBUTE TO COMPETITORS' EATING AWAY AT THE TIRE COMPANY'S MARKET SHARE THE GREENVILLE SCBASED UNIT OF FRANCE'S GROUPE MICHELIN REFUSED TO COMMENT ON MARKET SHARE FIGURES IT CALLED THE JOB CUTS A REACTION TO THE VERY COMPETITIVE AND SOFTENING NORTH AMERICAN TIRE MARKET THE DISMISSALS ALREADY HAVE BEGUN AND ARE EXPECTED TO BE COMPLETED BY THE END OF 1994 SALES OF REPLACEMENT TIRES IN THE US HAVE SLOWED THIS YEAR AFTER RISING 56 IN 1992 HARRY W MILLIS AN ANALYST WITH FUNDAMENTAL RESEARCH INC IN CLEVELAND ESTIMATED THAT THE REPLACEMENT MARKET WAS FLAT OR FELL SLIGHTLY IN 1993'S FIRST FIVE MONTHS COOPER TIRE & RUBBER CO A FINDLAY OHIO TIRE MAKER THIS MONTH CITED SOFTNESS IN THAT MARKET PREDICTING THAT ITS SECONDQUARTER EARNINGS MIGHT FALL SHORT OF THE YEAREARLIER PERIOD MICHELIN SAID THE JOB CUTS ARE PART OF AN OVERALL COSTREDUCTION PROGRAM ALTHOUGH ITS SPOKESMAN DECLINED TO CITE ANY OTHER EXAMPLES OF COST CUTTING AND NO OTHERS HAVE BEEN ANNOUNCED TO DATE HE DECLINED TO SAY HOW MUCH THE COMPANY WILL SAVE AS A RESULT OF THE PROGRAM OR WHETHER MICHELIN WILL TAKE A CHARGE TO COVER THE CUTS GROUPE MICHELIN SAID IN MAY IT WILL CUT 4850 JOBS OR 16 OF ITS WORK FORCE BY THE END OF 1994 EXCLUDING THE US REDUCTIONS GIVEN MICHELIN'S LOSS OF MARKET SHARE AND TROUBLES IN EUROPE WHERE THE ECONOMY IS MIRED IN RECESSION THIS JOB REDUCTION MAY NOT NECESSARILY BE THE LAST SAID DAVID M GARRITY AN ANALYST WITH MCDONALD & CO SECURITIES INC MICHELIN LOST SHARE IN THE US REPLACEMENT TIRE MARKET LAST YEAR IN PART PEOPLE IN THE INDUSTRY SAID BECAUSE ITS TECHNOLOGICAL EDGE HAS DULLED AND BECAUSE OF STIFF COMPETITION FROM A REINVIGORATED GOODYEAR TIRE & RUBBER CO MOREOVER COOPER AND KELLYSPRINGFIELD TIRE CO A GOODYEAR UNIT HAVE TAKEN MARKET SHARE FROM MICHELIN'S UNIROYAL GOODRICH DIVISION ESPECIALLY IN THE FASTGROWING PRIVATELABEL ARENA SAID MR MILLIS COOPER AND KELLYSPRINGFIELD HAVE FOCUSED ON THAT MARKET WHILE UNIROYAL GOODRICH OFTEN BACKS AWAY FROM IT WHEN THE ORIGINAL EQUIPMENT MARKET PICKS UP HURTING ITS RELATIONSHIP WITH PRIVATELABEL CUSTOMERS HE SAID 9306240001 930624 BUSINESS BRIEF SCOTTS CO LAWNCARE CONCERN PROJECTS JUMP IN ITS 3RDPERIOD SALES SCOTTS CO RESPONDING TO INVESTOR CONCERNS AFTER MAJOR CUSTOMER KMART CORP ANNOUNCED SLUGGISH SALES SAID IT PROJECTS SALES OF 153 MILLION AN INCREASE OF 18 FOR ITS THIRD QUARTER ENDING JULY 3 A YEAR EARLIER SCOTTS POSTED REVENUE OF 130 MILLION THE LAWNCARE COMPANY DECLINED TO FORECAST EARNINGS PRIOR TO REPORTING AUG 11 THE MARYSVILLE OHIO COMPANY EARNED 66 MILLION OR 31 CENTS A SHARE A YEAR EARLIER THE COMPANY SAID IT SAW A 36 SURGE IN APRIL SALES BUT HAS SEEN A SIMILAR SLOWDOWN TO THOSE REPORTED BY OTHER RETAILERS CHAIRMAN TADD C SEITZ SAID THAT IF RETAIL SALES TRENDS IN MAY AND JUNE CONTINUE THE COMPANY EXPECTS TO BE AT THE LOW END OF THE 1215 SALES GROWTH TARGET WE HAVE SET FOR THE YEAR SCOTTS STOCK SLID 150 TO 16 IN OVERTHECOUNTER TRADING 9306240135 930519 LEISURE & ARTS ARCHITECTURE NEW LIFE FOR AN OLD LADY BY GAIL KING CINCINNATI THE CINCINNATI ART MUSEUM HAD A SERIOUS IMAGE PROBLEM VISITORS TO THIS GRACEFUL OHIO RIVER METROPOLIS ASSUMED IT WAS THE PLACE THAT BURNED ITS FINGERS EXHIBITING ROBERT MAPPLETHORPE IN 1990 IN FACT THAT CONTROVERSIAL PHOTO SHOW WAS HUNG AT THE CONTEMPORARY ARTS CENTER AN ENTIRELY DIFFERENT INSTITUTION FOUNDED IN 1939 BY COMPARISON CAM WAS A STATELY OLD LADY DATING TO 1886 AND BADLY IN NEED OF RESTORATION AFTER TOO MANY HAMHANDED MAKEOVERS WHEN CARS REPLACED TROLLEYS AS THE VEHICLE OF CHOICE FOR CLIMBING MOUNT ADAMS TO REACH CAM THE MUSEUM BUILT A PARKING LOT AND MOVED THE FRONT DOOR ACROSS THE RICHARDSONROMANESQUE BUILDING THE OLD FRONT DOOR LEADING INTO THE GREAT HALL BECAME THE NEW BACK DOOR AND AFTER A MAJOR ANNEX WAS BUILT IN THE 1960S IT DISAPPEARED ALTOGETHER A JUSTCOMPLETED TWOYEAR 105 MILLION SWEEPING OUT HAS MANAGED TO TIE THE WHOLE COMPLEX TOGETHER IN GREAT SWOOPS OF WONDERFULLY WELLLIT EXHIBITION SPACE MICHAEL MOOSE OF CINCINNATI'S GLASER ASSOCIATES WAS THE RENOVATION ARCHITECT GEORGE SEXTON PLANNED THE DESIGN INCLUDING THE COMBINATION OF NATURAL AND TRACK LIGHTING AND THE NOTMUSEUMGRAY WALL COLORS THE PROJECT GREW AS WE DISCOVERED MORE INTACT PARTS OF THE ORIGINAL BUILDING SAYS ELISABETH BATCHELOR THE ASSISTANT DIRECTOR OF COLLECTIONS WHO SERVED AS DESIGNTEAM LIAISON DURING THE RENOVATION WE WERE ABLE TO TAKE ADVANTAGE OF BOTH THE 1886 BUILDING AND DANIEL BURNHAM'S 1907 ADDITION FOR INSTANCE THE DESIGN TEAM WAS ABLE TO RESUSCITATE THE DRAMATIC VITALITY OF A SMALL BACK ENTRY THAT BURNHAM INTENDED TO BE THE GATEWAY TO A SCULPTUREFILLED HALL THAT LED INTO WHAT WAS ORIGINALLY THE SCULPTUREFILLED GREAT HALL THE SCULPTURE WAS DISPOSED OF YEARS AGO WHEN PLASTER CASTS WENT OUT OF VOGUE LEAVING A LOT OF ARCHITECTURAL RHETORIC THAT LED TO A LOT OF VOID THE NEW DESIGN FEATURES INSTEAD OF THE SCULPTURE LARGE CASES CONTAINING A CHRONOLOGICAL EXHIBITION OF THE MUSEUM'S CLASSICAL COLLECTION VISITORS PASS THROUGH THIS AREA INTO THE RESTORED GREAT HALL WHERE HIRAM POWERS'S EVE DISCONSOLATE REIGNS ALONE DAZZLED CAM REGULARS CAN HARDLY BELIEVE WHAT HAD BEEN CONCEALED FROM THEM BY A SOULLESS '50S RENOVATION THAT CHOPPED THE GREAT HALL INTO TWO FLOORS AND 12 BOXLIKE ROOMS RESTORED NOW BEYOND ITS ORIGINAL GRANDEUR THE THIRD FLOOR HAS BEEN OPENED UP TO TAKE ADVANTAGE OF A SKYLIGHT THE HALL PROVIDES A MAGNIFICENT 2030SQUAREFOOT SPACE FOR SOCIAL FUNCTIONS NEW STAIRWAYS CURVE FROM THE CENTER UP BOTH SIDES MUCH AS THE 1886 VERSIONS DID AND THE GREAT HALL'S ORIGINAL FACADE IS EXPOSED RED GRANITE COLUMNS SUPPORT A GRAY GRANITE ARCHWAY A FEW TINY SPACES DO REMAIN AMONG THEM A SMALL ENTRANCE ROOM ON THE SECOND FLOOR WHERE PAINTINGS BY FRANK DUVENECK WHO FOR MANY YEARS MAINTAINED A STUDIO ABOVE THE GREAT HALL HANG SALONSTYLE CEILING TO FLOOR IN ADDITION AN OCTAGONAL GALLERY A SMALL SPACE HITHERTO DEVOTED TO MINIATURES HAS BEEN TRANSFORMED A LONGFORGOTTEN SKYLIGHT HAS BEEN OPENED THE COFFERED CEILING HAS BEEN REGILDED AND THE WALLS HAVE BEEN PAINTED AN ALMOST ELECTRIC GREEN IT IS NOW AN EXQUISITE SETTING FOR FIVE DUTCH AND FLEMISH STILL LIFES SO NOW THIS FORMERLY CLAUSTROPHOBIC FRUMP OF A PLACE HAS VISTAS THERE ARE DELIBERATELY PLANNED VIEWS ACROSS THE BUILDING FROM SEVERAL POINTS YOU CAN STAND UNDER BENJAMIN WEST'S OPHELIA AND LAERTES AND LOOK 300 FEET ACROSS EIGHT GALLERIES AND SEE A JUAN GRIS ABSTRACT STILL LIFE STAND UNDER THE HUGE NEWLY OPENED SKYLIGHT BORDERED WITH 19THCENTURY HEATINGSYSTEM GRILLWORK IN THE 19THCENTURY AMERICAN GALLERY AND LOOK INTO 19THCENTURY EUROPEAN ON ONE SIDE AND 19THCENTURY CINCINNATI IN ITS HEYDAY AS A CULTURAL CENTER OF NATIONAL REPUTE ON THE OTHER ONE OF THE MOST ENDURING RESULTS OF THAT ERA OF REFINEMENT AND PROSPERITY WAS ROOKWOOD POTTERY SO IT MAKES WONDERFUL SENSE THAT CAM SHOULD MARK ITS RETURN TO ITS OWN 19THCENTURY MAGNIFICENCE WITH A SPECIAL EXHIBITION OF ROOKWOOD WARE THE POTTERY WAS FOUNDED IN 1880 BY MARIA LONGWORTH NICHOLS WHOSE GLORIOUS GAMBLE THAT AESTHETIC IDEALS WERE MORE IMPORTANT THAN THE BOTTOM LINE WAS FINANCED BY HER FATHER NICHOLAS LONGWORTH CINCINNATI POTTERS DEVELOPED AND PERFECTED BEFORE ANYONE ELSE IN AMERICA POLYCHROME UNDERGLAZE SLIP PAINTING WHICH HAD BEEN A HAVILAND & CO SECRET THE ART ACADEMY SUPPORTED BY MR LONGWORTH AND ADJACENT TO THE ART MUSEUM TURNED OUT ARTISTS WHO WENT TO WORK FOR ROOKWOOD A FEW BLOCKS AWAY THIS COMBINATION OF TECHNICAL EXPERTISE AND ARTISTIC ABILITY GAINED INTERNATIONAL ACCLAIM AS WELL AS A NICE BOTTOM LINE FOR ROOKWOOD THE ARCHITECTURAL BRANCH OF THE BUSINESS PRODUCED TILES FOR SEVERAL NEW YORK SUBWAY STATIONS INCLUDING 23RD AND 86TH STREETS THE GLORIOUS GAMBLE DISPLAYS 100 PIECES INCLUDING EXAMPLES OF THE BLACK IRIS SEA GREEN AND TIGER EYE GLAZES THAT HELPED ROOKWOOD WIN THE GRAND PRIZE AT THE 1900 PARIS INTERNATIONAL EXPOSITION THE POTTERY MOSTLY VASES RANGES FROM A TALL WHITE YELLOW AND GOLD VASE DECORATED WITH A JAPANESESTYLE FISH AND BORDERED TOP AND BOTTOM WITH GILT TO A STUNNING FIVEINCHHIGH ART DECO VASE LINED IN FRENCH RED THE VASES INCLUDE SEVERAL QUIET INTIMATE LANDSCAPES ENHANCED BY ROOKWOOD'S SOMEWHAT HAZY VELLUM GLAZE THE ONLY THING THIS EXHIBITION IS CONCERNED WITH IS BEAUTY SAYS ANITA ELLIS CURATOR OF DECORATIVE ARTS WHEN I CHOSE PIECES I DIDN'T CHOOSE FOR TECHNICAL ASPECTS OR FOR CHRONOLOGICAL REASONS THIS IS NOT A RETROSPECTIVE THE ONLY CRITERION I USED WAS THE AESTHETIC QUALITY OF THE PIECE I WANT YOU TO LOOK AT ROOKWOOD AND THINK BEAUTY MASTERPIECES FROM THE CINCINNATI ART MUSEUM 1595 AND AN EXCELLENT CATALOG FOR THE GLORIOUS GAMBLE 2995 ARE AVAILABLE FROM THE MUSEUM EDEN PARK CINCINNATI OH 452021596 THE GLORIOUS GAMBLE CLOSES HERE ON JUNE 6 IT WILL BE AT THE STERLING AND FRANCINE CLARK ART INSTITUTE IN WILLIAMSTOWN MASS FROM JULY 3 THROUGH SEPT 12 MS KING IS A WRITER IN HENDERSON KY SEE RELATED LETTER LETTERS TO THE EDITOR AWEINSPIRING MEMORY OF OLD CINCINNATI WSJ JUNE 24 1993 9305190099 YY93 MM06 9306240127 930507 LETTERS TO THE EDITOR MERE FACTS DON'T DAUNT GREEN ZEALOTS JONATHAN H ADLER'S APRIL 14 EDITORIAL PAGE ARTICLE THE GREENING OF AMERICA'S YOUTH ILLUMINATES HOW CHILDREN ARE BEING INDOCTRINATED BY ENVIRONMENTAL ACTIVISTS AND THEIR FELLOW TRAVELERS IN THE MEDIA AND GOVERNMENT REGULATORY AGENCIES WHILE HE EXPOSES MANY OF THE TENDENTIOUS FACTS PARROTED IN ENVIRONMENTAL PAMPHLETS AND PROGRAMS DIRECTED AT CHILDREN I FEEL OBLIGED TO POINT OUT A SMALL FACTUAL ERROR MADE BY MR ADLER THAT BEARS ON OUR INDUSTRY THOSE LITTLE WHITE CUPS MADE OF POLYSTYRENE FOAM HAVE NEVER BEEN MANUFACTURED WITH CFCS MR ADLER HAS CONFUSED OUR PRODUCT WITH POLYSTYRENE SANDWICH BOXES EG THE ERSTWHILE MCDONALD'S HAMBURGER CARTONS WHICH HAD BEEN MANUFACTURED WITH CFCS PRIOR TO 1989 THAT CONFUSION HAS BEDEVILED OUR INDUSTRY EVER SINCE IT BECAME FASHIONABLE TO DEMONIZE STYROFOAM PRODUCTS I WISH MR ADLER LUCK IN HIS EFFORTS TO ENLIGHTEN THE PUBLIC ABOUT THE DISINFORMATION CAMPAIGN BEING DIRECTED AT THEIR CHILDREN BUT HE WILL NEED MORE THAN MERE FACTS TO BATTLE THE ENVIRONMENTAL TRUEBELIEVERS I HAVE FOUND THAT CONFRONTING THESE ZEALOTS WITH FACTS THAT CONTRAVENE THEIR ASSERTIONS IS A LITTLE LIKE CUTTING OFF THE HYDRA'S HEAD THEY DROP THE FIRST ARGUMENT IN FAVOR OF OTHER EQUALLY ILLSUPPORTED CLAIMS I HAVE PARTICIPATED IN A NUMBER OF HEARINGS TO FIGHT VARIOUS PROPOSED BANS ON POLYSTYRENE FOAM CUPS IT AMAZES ME TO WATCH THE METAMORPHOSIS OF THE LINE OF ATTACK TAKEN BY THE BAN ADVOCATES WHEN POLYSTYRENE OPPONENTS REALIZED THAT THE CFC ISSUE WAS NO LONGER A POTENT WEAPON THEY MOVED THE DEBATE TO BIODEGRADABILITY BUT A DEFINITIVE STUDY OF THE NATION'S LANDFILLS CONDUCTED BY THE UNIVERSITY OF ARIZONA PROVES THAT ALL THE FULMINATIONS REGARDING BIODEGRADABILITY LEAD DOWN A BLIND ALLEY IN A LANDFILL ENVIRONMENT EVEN SUCH APPARENTLY BIODEGRADABLE MATERIALS AS NEWSPAPERS FOOD AND YARD WASTE WILL NOT BREAK DOWN READILY ABSENT AIR SUNLIGHT AND WATER THE STUDY FOUND FURTHER THAT POLYSTYRENE FOOD PACKAGING COMPRISED ONLY ONE QUARTER OF 1 OF A TYPICAL LANDFILL BY CONTRAST NEWSPAPERS ARE GLUTTING OUR LANDFILLS COMPRISING UP TO 18 IN SOME COMMUNITIES WHERE IS THE HUE AND CRY TO BAN NEWSPAPERS THERE IS NONE OF COURSE BECAUSE THE ENVIRONMENTAL PROPAGANDISTS PREFER SYMBOLIC VICTORY TO SUBSTANTIVE DEBATE WHAT BETTER SYMBOL OF WASTEFUL AMERICAN CONSUMERISM THAN A ONEUSE DISPOSABLE CUP THE PROBLEM IS THAT BANNING THE PRODUCT DOES NOT ELIMINATE THE NEED THAT THE PRODUCT FILLED PAPER CUPS HAVE INEVITABLY BECOME THE REPLACEMENT OF CHOICE AT LEAST THEY ARE MADE FROM A RENEWABLE RESOURCE ARGUE THE ENVIRONMENTALISTS WHILE POLYSTYRENE FOAM CUPS ARE MADE OF NONRENEWABLE PETROLEUM PRODUCTS LAYING ASIDE THE ISSUE OF DEFORESTATION THIS ARGUMENT TOO IS UNSUPPORTABLE POLYSTYRENE PRODUCTION DOES NOT RESULT IN A NET INCREASE IN PETROLEUM CONSUMPTION THE PRECURSORS TO STYRENES ARE MADE AS A BYPRODUCT OF OTHER REFINING PROCESSES AND IN FORMER TIMES THESE BYPRODUCTS HAD TO BE FLARED OR OTHERWISE DISPOSED OF FURTHERMORE TWO RECENT INDEPENDENT STUDIES COMPARING THE MANUFACTURING PROCESSES OF PAPER CUPS VERSUS FOAM CUPS REVEAL THAT PAPER CUP PRODUCTION CONSUMES MUCH MORE ENERGY AND RELEASES MANY MULTIPLES MORE AIR AND WATER EMISSIONS THAN DOES POLYSTYRENE FOAM CUP PRODUCTION DOES THIS AVALANCHE OF DATA FAZE THE BANATALLCOSTS ENVIRONMENTALISTS OF COURSE NOT THEY HAVE SHIFTED THE DEBATE ONCE MORE BY RAISING THAT ALLPURPOSE SPECTER CANCER RISK NEVER MIND THAT OSHA AND EPA RELYING ON EXHAUSTIVE RESEARCH HAVE REFUSED TO CLASSIFY STYRENE AS EVEN A POSSIBLE CARCINOGEN NEVER MIND THAT IN A CUP OF COFFEE THERE ARE MORE NATURALLY OCCURRING STYRENES IN THE JAVA ITSELF THAN CAN POSSIBLY MIGRATE FROM THE FOAM CUP TO THE BEVERAGE MR ADLER HAS CHOSEN FOR HIMSELF A TRULY SISYPHEAN TASK IF HE HOPES THAT COGENT ANALYSIS AND SCIENTIFIC EVIDENCE CAN PERSUADE THE ENVIRONMENTAL PROPAGANDISTS TO TEMPER THEIR INDOCTRINATION OF OUR CHILDREN WE KNOW FROM HARD EXPERIENCE THAT ONCE A PRODUCT OR INDUSTRY HAS BEEN PUT ON THE ENVIRONMENTAL HIT LIST IT IS NEARLY IMPOSSIBLE TO DISABUSE THE ENVIRONMENTALIST OF HIS ANTIPATHY MY FIVEYEAROLD DAUGHTER IS BEING BOMBARDED WITH THE KINDS OF HALFTRUTHS AND OUTRIGHT LIES MR ADLER CITES CLEARLY NICKELODEON IS THE BIGGEST OFFENDER WITH THE DISNEY CHANNEL RUNNING A CLOSE SECOND THE BARRAGE OF ENVIRONMENTALIST PROPAGANDA MUCH OF IT IN THE FORM OF PUBLIC SERVICE ANNOUNCEMENTS PSAS PRODUCED BY ENVIRONMENTAL ADVOCACY GROUPS IS SO PERVASIVE ON NICKELODEON THAT THAT CHANNEL IS NOW COMPLETELY OFFLIMITS TO MY DAUGHTER CONSISTENT WITH MR ADLER'S CONTENTION THAT OUR CHILDREN ARE BEING CONSCIOUSLY TARGETED WITH THIS PROPAGANDA NO ONE WHO WATCHES NICK AT NIGHT NICKELODEON'S ADULTORIENTED PROGRAMMING WOULD GET ANY INDICATION THAT THIS PROPAGANDIZING IS GOING ON THE PSAS AND THE MESSAGES ABOUT GLOBAL WARMING AND RECYCLING SUDDENLY DISAPPEAR ONCE THE EVENING PROGRAMING BEGINS I ENCOURAGE ALL PARENTS WHO ARE CONCERNED ABOUT WHAT THEIR CHILDREN ARE SEEING ON TELEVISION TO QUESTION THE VALIDITY OF THE MESSAGES BEING CONVEYED ABOUT THE ENVIRONMENT MOST OF THE INFORMATION IS NOT COMING FROM SCIENTIFIC JOURNALS AND LEGITIMATE RESEARCH BUT FROM SPECIAL INTEREST GROUPS WHOSE LEVEL OF FINANCIAL CONTRIBUTIONS DEPEND ON THE PERCEPTION THAT AN ENVIRONMENTAL CRISIS EXISTS IT'S ALSO REVEALING TO LOOK AT WHY ENVIRONMENTALISTS ARE TYPICALLY SO SUCCESSFUL AT WINNING CHILDREN OVER TO THEIR IDEAS PART OF THE REASON OF COURSE IS THAT FEW ALTERNATIVE VOICES EXIST FOR CHILDREN TO HEAR MOST OF THE INDUSTRIAL WORLD FEELS CONTEMPT FOR INDUSTRY AS SUCH AND HAS COME TO ACCEPT AS GOSPEL ALMOST ANY ENVIRONMENTALIST CLAIM JOURNALISTS OFTEN UNCRITICALLY ACCEPT THE HYPOTHESES OF POLITICALLY BIASED SCIENTISTS WHO ARE LIVING ON GOVERNMENT GRANTS TEACHERS AND PARENTS IN TURN OFTEN UNCRITICALLY ACCEPT THE HYPE OF THE MEDIA AND CHILDREN WHO RELY ON ADULTS TO TEACH THEM THE ART OF CRITICAL THINKING ARE OFTEN LEFT DEFENSELESS IN THE FACE OF ALLEGED FACTS AND ENVIRONMENTAL EMERGENCIES WHEN ADULTS FEED CHILDREN THESE DAILY DOSES OF POISONOUS FALSEHOODS SUCH AS THE IDEA THAT CFCS WHICH ARE HEAVIER THAN AIR RISE TO AND DESTROY THE OZONE LAYER CHILDREN HAVE LITTLE RECOURSE TO FIND AN ANTIDOTE OR TO EVEN KNOW THAT AN ANTIDOTE IS NEEDED BUT CHILDREN ARE ALSO HIGHLY SUSCEPTIBLE TO ENVIRONMENTALIST IDEAS FOR ANOTHER REASON CHILDREN LIKE ENVIRONMENTALISTS TYPICALLY DON'T HOLD PRODUCTION IN MUCH ESTEEM RATIONAL ADULTS KNOW THAT TO LIVE THEY MUST PRODUCE THAT IS THEY KNOW THAT THEY MUST REFASHION THEIR ENVIRONMENT TO MEET THEIR NEEDS CHILDREN OFTEN DON'T FULLY GRASP THIS CONNECTION BECAUSE PARENTS PROPERLY SEE TO IT THAT THEIR NEEDS ARE MET FOR THEM AS A RESULT CHILDREN OFTEN DON'T RECOGNIZE HOW MUCH OF A SACRIFICE IT IS TO CLOSE A FACTORY FOR THE SAKE OF A SNAIL DARTER GIVEN ENVIRONMENTALISTS' LOW ESTEEM OF HUMAN LIFE IT'S NOT SURPRISING THAT THEY FEEL NO QUALMS ABOUT FILLING CHILDREN'S MINDS WITH FALSEHOODS AND PLAYING THEM LIKE PAWNS IN A POLITICAL GAME THOSE CHILDREN DON'T UNDERSTAND ENVIRONMENTAL ACTIVISTS CLOAK THEMSELVES WITH MORAL SUPERIORITY AND THEREFORE EXCUSE SMALL LAPSES OF FACT FOR THE GREATER GOOD OF INCULCATING THE LAUDABLE VALUE OF SPIRITUAL CONNECTION BETWEEN HUMANS AND THE ENVIRONMENT THEY SHOULD BE SCOLDED FOR BLATANTLY ABUSING THEIR POWER AS ADULTS OVER CHILDREN THE ADULTCHILD RELATIONSHIP IS THE DEFINITION OF A POWER RELATIONSHIP CHILDREN HAVE ALMOST NO DEFENSES AGAINST MASSIVE DISTORTIONS PERPETRATED AGAINST THEM BY POWERFUL ADULTS MISLEADING CHILDREN WITH MADEUP FACTS AND IMPOSING SIMPLISTIC ANSWERS BREAK TRUST DESTROY RESPECT AND BACKFIRE SEE RELATED LETTER LETTERS TO THE EDITOR HOW THOSE CFCS GET WAY UP THERE WSJ JUNE 24 1993 9305070183 YY93 MM06 9306240122 930524 ENVIRONMENT EPA SPENDING IS OFF TARGET STUDY SAYS BY JEFF BAILEY AND TIMOTHY NOAH STAFF REPORTERS OF THE WALL STREET JOURNAL THE ENVIRONMENTAL PROTECTION AGENCY SPENDS JUST 20 OF ITS BUDGET ON THE MOST SERIOUS POLLUTION PROBLEMS WHILE THE REST GOES TO DEAL WITH LOWERRISK CONTAMINATION A STUDY BEING RELEASED TODAY CONCLUDES THE REPORT BY THE WASHINGTONBASED CENTER FOR RESOURCE ECONOMICS AN INDEPENDENT ENVIRONMENTALRESEARCH AND PUBLISHING GROUP COMES AS GOVERNMENT BUSINESS AND ENVIRONMENTAL LEADERS INCREASINGLY COMPLAIN THAT THE NATION DOES A POOR JOB OF ALLOCATING MONEY AND EXPERTISE TO FIGHT POLLUTION THE CLINTON ADMINISTRATION IS UNDER PRESSURE TO SET ENVIRONMENTAL PRIORITIES AND DIRECT MONEY ACCORDINGLY THE EPA HAS BEEN FORCED INTO ITS QUESTIONABLE SPENDING PATTERN BY A SERIES OF EXPLICIT LAWS PASSED OVER THE PAST 20 YEARS BY A LARGELY DEMOCRATIC CONGRESS THAT DIDN'T TRUST REPUBLICAN ADMINISTRATIONS ON ENVIRONMENTAL ISSUES CONGRESS HAS ALSO USED THE EPA'S 7 BILLION ANNUAL BUDGET AT TIMES AS A PORK BARREL REQUIRING SPENDING ON PROJECTS THAT WHILE WORTHWHILE DON'T ATTACK THE MOST SERIOUS ENVIRONMENTAL PROBLEMS THE REPORT MAINTAINS AND ENVIRONMENTAL ACTIVISTS HAVE CONTRIBUTED TO THE AGENCY'S LACK OF SPENDING FLEXIBILITY BY FREQUENTLY FILING LAWSUITS THAT RESULT IN COURT ORDERS FORCING THE EPA TO SPEND MONEY TO ENFORCE SPECIFIC LAWS THE AGENCY'S STRUCTURAL PROBLEM SEEMS UNLIKELY TO BE CORRECTED ANY TIME SOON BY THE CLINTON ADMINISTRATION THAT COULD MAKE IT TOUGH TO FULFILL CAMPAIGN PROMISES TO VASTLY IMPROVE THE GOVERNMENT'S EFFORTS TO PROTECT THE ENVIRONMENT SIMPLY BOOSTING SPENDING ON ALL FRONTS ISN'T AN OPTION THE PRESIDENT'S PROPOSED FISCAL 1994 BUDGET ACTUALLY CUTS SPENDING AT THE EPA WHILE FOR INSTANCE INCREASING OUTLAYS AT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION WHOSE BUDGET IS ROUGHLY TWICE THE SIZE OF THE EPA'S THE GENERAL ACCOUNTING AGENCY NOTED LAST DECEMBER THAT WHILE THE EPA'S DUTIES INCREASED SIGNIFICANTLY IN RECENT YEARS ITS OPERATING BUDGET WHEN ADJUSTED FOR INFLATION IS STUCK AT THE SAME LEVEL AS IN 1979 THE AGENCY ITSELF HAS TRIED IN RECENT YEARS TO SET PRIORITIES USING ITS OUTSIDE SCIENCE ADVISORY BOARD TO RANK TYPES OF POLLUTION BY RISK TO HUMAN HEALTH OR THE ENVIRONMENT BUT SPENDING PATTERNS ARE LITTLE CHANGED BECAUSE OF THE RIGID LAWS EPA NEEDS TO TEAR UP ALL THE ENVIROMENTAL LAWS AND COME UP WITH A CENTRAL LAW THAT ADDRESSES POLLUTANTS ON A PRIORITY BASIS SAYS MARC SMOLONSKY DIRECTOR OF THE CENTER'S ENVIROMENTALBUDGETPRIORITIES PROJECT FORMER EPA CHIEF WILLIAM D RUCKELSHAUS ECHOES THAT SENTIMENT HE SAYS THE AGENCY WOULD BE BETTER OFF WITH AN UMBRELLA LAW WHAT CONGRESS SHOULD DO IS GIVE THE AGENCY A LOT MORE FLEXIBILITY AND THEN EXERCISE OVERSIGHT HE SAYS IN RESPONSE MIKE VANDENBERG A SENIOR POLICY ADVISER TO THE EPA SAYS THE AGENCY FAVORS ALTERING CONGRESSIONALLY SET PRIORITIES WHEN THEY NO LONGER MAKE SENSE BUT THAT DOING SO IS A LONGTERM EVOLUTIONARY PROCESS MORE THAN HALF THE EPA'S CURRENT SPENDING GOES TOWARD CLEANING UP OLD DUMP SITES UNDER THE SUPERFUND PROGRAM AND TO HELP MUNICIPALITIES BUILD SEWAGETREATMENT PLANTS WHICH BOTH ADDRESS LOWERRISK ENVIRONMENTAL PROBLEMS MORE FRIGHTENING CONTAMINATION AIR POLLUTION RADON IN HOMES DESTRUCTION OF THE OZONE LAYER AND GLOBAL WARMING RECEIVE RELATIVELY SMALL AMOUNTS OF MONEY THE CLINTON ADMINISTRATION'S PROPOSED EPA BUDGET FOR NEXT YEAR CONTAINS NO ENORMOUS CHANGES IN HOW BUDGET PRIORITIES COMPARE WITH AREAS OF SCIENTIFIC CONCERN SAYS DERRY ALLEN ACTING DIRECTOR OF THE EPA'S OFFICE OF STRATEGIC PLANNING AND ENVIRONMENTAL DATA I HAVEN'T SEEN ANY INNOVATIVE IDEAS FROM THE CLINTON TEAM ABOUT HOW TO TURN EPA AROUND MR SMOLONSKY SAYS DRAWING ON SCIENTIFIC RISK ANALYSES AND POLLING DATA FROM THE EPA THE NEW STUDY ARGUES THAT THE AGENCY'S BUDGET PRIORITIES ARE MORE CLOSELY ALIGNED WITH POPULAR NOTIONS ABOUT THREATS TO THE ENVIRONMENT THAN WITH THE THREATS THEMSELVES POLLUTION THAT CAN BE SEEN AND THAT IS LOCAL SUCH AS OLD DUMP SITES IS CONSIDERED A HIGHRISK THREAT BY THE PUBLIC THOUGH THE SCIENCE ADVISORY BOARD RANKS OLD DUMP SITES AS A LESS SERIOUS THREAT AT THE SAME TIME THESE SCIENTISTS RANK RADON IN HOMES AS A HIGH RISK TO HUMAN HEALTH THOUGH PUBLIC CONCERN IS LOW CONVINCING CONGRESS THAT MONEY SHOULD FOLLOW SCIENCE AND NOT THE PREVAILING PUBLIC SENTIMENT COULD BE DIFFICULT SEN MAX BAUCUS THE NEW CHAIRMAN OF THE SENATE ENVIRONMENT AND PUBLIC WORKS COMMITTEE BLUNTLY ASSERTS THAT WHERE SCIENCE DIFFERS FROM PUBLIC OPINION THE ANSWER ISN'T NECESSARILY TO SIDE WITH SCIENCE WE DO LIVE IN A DEMOCRACY HE SAYS THE CONSTITUTION DOESN'T SAY SCIENTISTS SHOULD BE ELECTED TO CONGRESS IT SAYS PEOPLE SHOULD BE ELECTED TO CONGRESS SHORT ON CASH AND LONG ON CONGRESSIONALLY IMPOSED DUTIES THE EPA IS CONSTANTLY BEING SUED BY ENVIRONMENTAL GROUPS OVER ONE MISSED STATUTORY DEADLINE OR ANOTHER AT A RECENT CONGRESSIONAL HEARING EPA ADMINISTRATOR CAROL BROWNER ESTIMATED THAT LEGAL COSTS EAT UP 20 OF THE AGENCY'S AIRQUALITY BUDGET THE LITIGATION IS ESSENTIALLY SETTING THE PRIORITIES MS BROWNER SAID THE EPA'S ACTIONS ARE SO OFTEN DICTATED BY COURT ORDERS THAT SEN BAUCUS DESCRIBES THE AGENCY AS BEING IN RECEIVERSHIP ELLEN SILBERGELD A UNIVERSITY OF MARYLAND TOXICOLOGIST WHO IS ALSO AFFILIATED WITH THE ENVIRONMENTAL DEFENSE FUND DEFENDS THAT GROUP AND OTHERS' LAWSUITS AS NECESSARY TO FORCE THE EPA TO ENFORCE LAWS SHE WAS A MEMBER OF THE SCIENCE ADVISORY BOARD THAT RANKED RISKS BUT CALLS THE EXERCISE STUPID SHE ADDS EPA SPENDS TOO MUCH TIME PRIORITIZING AND NOT ENOUGH TIME DOING THINGS ANOTHER PROBLEM PLAGUING THE EPA IS MISMANAGEMENT OF CONTRACTS WITH PRIVATE FIRMS IN A MARCH APPEARANCE ON CAPITOL HILL MS BROWNER SAID SHE WAS APPALLED BY HOW THE AGENCY HAD HANDLED CONTRACTS MISMANAGEMENT OF EXTRAMURAL RESOURCES IS WIDESPREAD AND DEEPLY EMBEDDED IN THE AGENCY SHE SAID MR RUCKELSHAUS THE AGENCY'S FIRST CHIEF SAYS MISTRUST WAS ALREADY HIGH WHEN THE AGENCY WAS SET UP UNDER RICHARD NIXON AND THAT HAS WORSENED SINCE CONGRESS SET VERY DETAILED AND PERHAPS UNREALISTIC STANDARDS FOR REDUCING POLLUTION THE EPA COULDN'T MEET THE DEADLINES OR THE GOALS CONGRESS BECAME MORE DUBIOUS ABOUT THE AGENCY HE ADDS ONE WAY TO READ THE ENVIRONMENTAL LAWS OF THIS COUNTRY IS AS AN EXPRESSION OF A LACK OF TRUST OF THE EXECUTIVE BRANCH BY THE LEGISLATIVE BRANCH THE WASTE AIR AND WATER ACTS WHICH SOMETIMES OVERLAP IN THE APPLICATION AND ENFORCEMENT ARE VERY PRECISE BUT THEY DON'T FORM A COHERENT POLICY ACCORDING TO F HENRY HABICHT II WHO WAS DEPUTY EPA ADMINISTRATOR IN THE BUSH ADMINISTRATION YOU CAN'T STAPLE ALL THESE RULES TOGETHER AND SAY YOU HAVE A POLICY CONGRESS ALSO LIMITS EPA FLEXIBILITY BY EARMARKING IN THE BUDGET MONEY FOR CERTAIN PROJECTS ABOUT 10 OF 1993 EPA DOLLARS IS EARMARKED ACCORDING TO THE REPORT BOB TRAXLER A NOWRETIRED MICHIGAN DEMOCRAT WHO HEADED THE HOUSE APPROPRIATIONS SUBCOMMITTEE THAT HANDLES THE EPA'S BUDGET EARMARKED ABOUT 105 MILLION FOR A FRESHWATERRESEARCH CENTER TO BE BUILT IN HIS DISTRICT THE REPORT NOTES SAYING ALTHOUGH THIS MAY BE A WORTHWHILE PROJECT IT APPEARS TO BE A QUESTIONABLE USE OF FUNDING PRIORITIES MR TRAXLER COULDN'T BE REACHED FOR COMMENT AN EPA OFFICIAL IN CHICAGO SAYS THE BAY CITY MICH RESEARCH CENTER ALREADY HAS A SUPERCOMPUTER OPERATING THE WORLD'S ONLY ONE DEDICATED SOLELY TO ENVIRONMENTAL RESEARCH AND THAT A NEW DOCK IS BEING BUILT THERE FOR THE AGENCY'S GREAT LAKES SHIP THE CENTER'S SPECIFIC RESEARCH MISSION HOWEVER HASN'T BEEN DECIDED THE REPORT RECOMMENDS BEEFING UP EPA RESEARCH SO IT CAN STUDY MORE KINDS OF POLLUTION RANK THEM ACCORDING TO RISK AND THEN ALLOCATE MONEY TO THE MOST SERIOUS THREAT MR RUCKELSHAUS WHO HAS READ A SUMMARY OF THE REPORT NOTES THAT SUCH STUDIES WHICH OFTEN INVOLVE TESTING BOTH ANIMALS AND HUMANS AND MEASURING EXPOSURE LEVELS TYPICALLY TAKE YEARS TO COMPLETE AND EVEN THEN THERE IS OFTEN DISAGREEMENT BETWEEN SCIENTISTS ABOUT THE RESULTS THE CENTER ALSO SAYS THE AGENCY NEEDS TO BETTER ASSESS HOW EFFECTIVE ITS PROGRAMS ARE IN PROTECTING THE ENVIRONMENT INSTEAD IT EVALUATES ITS PROGRAMS BY CONDUCTING BEANCOUNTING EXERCISES HOW MANY PERMITS WERE ISSUED HOW MANY INSPECTIONS WERE CONDUCTED HOW MANY REGULATIONS WERE WRITTEN HOW MANY ENFORCEMENT NOTICES WERE ISSUED MR VANDENBERG SPEAKING FOR THE EPA SAYS HE HASN'T YET READ THE NEW REPORT HE ADDS THAT THE EPA VIEWS RISK ASSESSMENT AS IMPORTANT AND NOTES THAT ITS 1994 BUDGET PROPOSAL INCLUDES A DOUBLING OF MONEY TO COMBAT LEAD POISONING A HEALTH PROBLEM OFTEN IDENTIFIED AS FAR MORE SERIOUS THAN ITS FUNDING LEVEL SUGGESTS BUT HE DECLINES TO NAME ANY AREA WITHIN THE AGENCY AS OVERFUNDED SEE RELATED LETTER LETTERS TO THE EDITOR SOME DATA TO COOL GLOBAL WARMING DEBATE WSJ JUNE 24 1993 9305240053 YY93 MM06 9306240107 930510 REVIEW & OUTLOOK EDITORIAL WEAK LIMB THE CARTERCLINTON ADMINISTRATION'S NEW STIMULUS BILL MAY OR MAY NOT INCLUDE MONEY FOR URBAN TREE PLANTING LIKE LAST TIME LET'S SEE WHAT INQUIRING JOURNALISTS IN THREE WESTERN CITIES FOUND OUT ABOUT SUCH PROJECTS THE SEATTLE WEEKLY NOTICED ON THIS PAGE THAT 5 MILLION WAS DESTINED FOR THAT CITY UNDER STIMULUS I TO PURCHASE 10000 TREES THAT SEEMED A MIGHTY TALL TAB 500 A TREE TURNS OUT THAT 15 MILLION WAS FOR REPAIR OF SIDEWALKS DAMAGED BY TREES PLANTED EARLIER OKAY 350 A TREE THE SEATTLE SCRIBES KEPT ASKING A CITY ENGINEER SAID TREES PLANTED BY VOLUNTEERS COST ABOUT 75 TOTAL A NURSERY SAID IT COULD DO THE JOB FOR 10 LESS THAN THAT BUT WHEN THE CITY DID THINGS THE OFFICIAL WAY IT NEEDED 350 AT THIS RATE THE WEEKLY FIGURED SEATTLE'S PLAN TO PLANT 500000 TREES BY 2001 WOULD COST 175 MILLION LET'S HOPE SOME VOLUNTEERS ARE ALLOWED BACK IN THE PROGRAM AFTER ALL THE STIMULUS' HAS PASSED THE PAPER OBSERVED TURNS OUT SEATTLE'S AMBITION IS MODEST THE PHOENIX GAZETTE FOUND THAT OFFICIALS THERE AIMED TO PLANT 1 MILLION DESERTADAPTED TREES BY 1995 SINCE 1990 535000 MOST OF IT FROM FEDERAL TAXPAYERS COURTESY OF A GEORGE BUSH PROGRAM HAS BEEN SUNK INTO THE FORESTRY FOR PHOENIX PROGRAM AND SUPPOSEDLY 13000 TREES HAVE BEEN PLANTED THAT'S ABOUT 41 PER TREE PLUS THE CITY CLAIMS TO HAVE DISTRIBUTED 80000 SEEDLINGS SO MAYBE FOLKS THERE SHOULD BE CELEBRATING THE PROBLEM IS THE GAZETTE REPORTED NOBODY CAN FIND RECORDS OF WHERE IN FACT THE MONEY WAS SPENT MEANWHILE A VOLUNTEER PLANTING EFFORT IN COLORADO SPRINGS GOT DAN GRISWOLD THE EDITORIAL PAGE EDITOR OF THE GAZETTETELEGRAPH THERE THINKING ABOUT WHO REALLY PLANTS TREES WHEN THE SPRINGS STARTED IN 1871 HE WROTE NOT A SINGLE TREE COULD BE FOUND IN WHAT IS NOW THE SETTLED PART OF THE CITY THE ONLY GREEN THINGS GROWING WERE SCATTERED YUCCA PLANTS AND TUFTS OF WILD GRASS TODAY COLORADO SPRINGS HAS 780000 TREES ABOUT 80000 ARE ON PUBLIC LAND MEANING THAT 90 WERE PLANTED OR AT LEAST GREW PRIVATELY MOSTLY NEAR HOMES SO THE GREATEST BOON TO ARBORICULTURE WOULD APPEAR TO BE THE AMERICAN DREAM SUPPORTED BY PROPERTY RIGHTS YOU DIDN'T LEARN THAT ON EARTH DAY IF ONE CARES ABOUT TREES ALL OF THIS MIGHT BE OF SOME INTEREST IF HOWEVER BARK IS ONLY A COVER FOR THE BITE OF TAXATION IT DOESN'T REALLY MATTER WHETHER ANYTHING TAKES ROOT THE SEATTLE WEEKLY SUSPECTS THAT'S THE CASE HERE CALLING BILL CLINTON'S STIMULUS I NOTHING MORE THAN A PORKFILLED DUMPLING FOR BIGCITY MAYORS WHO HELPED ELECT HIM MAYBE THAT'S WHY THE PRESIDENT ISN'T GROWING ON THE US ELECTORATE SEE RELATED LETTER LETTERS TO THE EDITOR YOUR TREE EDITORIAL GOES OUT ON A LIMB WSJ JUNE 24 1993 9305100005 YY93 MM06 9306240094 930504 UNLIKELY SITES WHY GERMAN FIRMS CHOOSE THE CAROLINAS TO BUILD US PLANTS TRAINED AND MALLEABLE LABOR LOW WAGES CHEAP LAND ARE ALL BIG ATTRACTIONS CULTURES DO HOWEVER CLASH BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL SUMMERVILLE SC WHEN COREY LUTYNSKI TOOK A NEW JOB AT THE BAKER MATERIAL HANDLING CORP PLANT HERE SHE FOUND THE GERMANOWNED FORKLIFT MAKER A BIT SHORT ON SOUTHERN GENTILITY ONCE WHEN HER NEW GERMAN BOSS WANTED HIS STAPLER FILLED HE THREW IT FROM HIS DESK OUT INTO HER OFFICE IT TOOK SOME GETTING USED TO THE EXECUTIVE SECRETARY SAYS GERMANS AND AMERICANS ARE TRYING TO GET USED TO EACH OTHER ALL OVER THE CAROLINAS BAKER IS ONE OF MORE THAN 200 GERMAN COMPANIES THAT HAVE MADE THE TWO STATES LEADING MAGNETS FOR GERMAN INDUSTRY TOGETHER NORTH AND SOUTH CAROLINA HAVE ATTRACTED ABOUT 4 BILLION OF THE 42 BILLION GERMAN INVESTMENT IN THE US THAT IS SECOND ONLY TO TEXAS WHICH ATTRACTS A HUGE SHARE OF OVERALL FOREIGN INVESTMENT AND WITH THE GERMAN COMPANIES HAVE COME A LOT OF GERMAN MANAGERS IN FACT SO MANY GERMAN SPEEDERS HAVE BEEN TICKETED ALONG ONE STRETCH OF INTERSTATE 85 THAT LINKS THE CAROLINAS THAT STATE TROOPERS HAVE NICKNAMED IT THE AUTOBAHN SAYS ALAN SCHAFER WHO RUNS SOUTH OF THE BORDER A FIREWORKS BAZAAR IN DILLON SC THE PLACE IS CRAWLING WITH GERMANS LAST SUMMER ADIDAS AG MOVED ITS US HEADQUARTERS TO SPARTANBURG SC FROM WARREN NJ IN OCTOBER SIEMENS AG'S MEDICAL SYSTEMS DIVISION OPENED A 20 MILLION TRAINING CENTER IN CARY NC AND HELIMA HELVETION INTERNATIONAL STARTED UP AN AUTORADIATOR TUBING PLANT IN DUNCAN SC BAYERISCHE MOTOREN WERKE AG BROKE GROUND LAST FALL IN GREER SC FOR ITS FIRST AUTO PLANT NOT LOCATED IN GERMANY AND HAS RAISED ITS INVESTMENT TO MORE THAN 350 MILLION NOW MERCEDESBENZ AG IS WIDELY EXPECTED TO BUILD ITS FIRST US AUTOASSEMBLY PLANT IN NORTH CAROLINA OFFICIALS OF THE DAIMLERBENZ AG SUBSIDIARY RECENTLY INDICATED THAT THE PLANNED 300 MILLION FACILITY WOULD PROBABLY BE LOCATED NEAR ONE OF FOUR US HEAVYTRUCK FACTORIES OPERATED BY FREIGHTLINER CORP ANOTHER DAIMLER UNIT THREE OF THOSE PLANTS ARE IN THE STATE WHY THE CAROLINAS ON THE FACE OF IT THE GERMAN CONNECTION SEEMS UNLIKELY GERMANY AFTER ALL IS ONE OF THE WORLD'S MOST HEAVILY INDUSTRIALIZED COUNTRIES IT IS DISTINGUISHED FOR PRECISIONENGINEERED AUTOMOBILES SOPHISTICATED MACHINERY AND ELECTRICAL INSTRUMENTS THE CAROLINAS TOO HAVE A LOT OF INDUSTRY BUT MUCH OF IT IN LESS GLAMOROUS FIELDS SUCH AS TEXTILES AND POULTRY PROCESSING OUTSIDE THE RESEARCH TRIANGLE TECHNICAL PARK THE CAROLINAS AREN'T AT THE LEADING EDGE OF HIGH TECHNOLOGY IN ADDITION GERMANY HAS ONE OF THE WORLD'S BESTEDUCATED WORK FORCES NORTH CAROLINA AND SOUTH CAROLINA RANK AS THE 43RD AND 46TH STATES RESPECTIVELY IN ADULT LITERACY IN THE US MANY GERMAN NATIONALS LIVING IN THE CAROLINAS SHUN THE PUBLIC SCHOOLS AND SEND THEIR CHILDREN TO PRIVATE INSTITUTIONS EXCEPT FOR CHARLOTTE NC THE CAROLINAS AREN'T NOTED AS A HOT SPOT FOR US CORPORATE RELOCATIONS EVEN MANY AMERICAN COMPANIES STILL ASSUME EVERYBODY TALKS SLOW THEY'RE DUMB AND DO THEY EVEN WEAR SHOES SAYS JAMES SCHRINER A VICE PRESIDENT OF PHH FANTUS A CONSULTANT THAT HELPED BMW PICK A PLANT SITE BUT THE GERMANS HAVE GRAVITATED TOWARD THE CAROLINAS PRECISELY BECAUSE THE TWO STATES WEREN'T TRENDY AND THEY HAVE BENEFITED BY BEING BIG FISH IN A SMALL POND FOR EXAMPLE SOUTH CAROLINA RECENTLY FOUND A GERMAN INVESTMENT IMPORTANT ENOUGH TO SPLIT THE BILL WITH THE RECENTLY RECRUITED GERMAN COMPANY TO FLY SOME LOCAL PEOPLE TO GERMANY FOR TRAINING THE NEWCOMERS HAVE TURNED SOME ECONOMICDEVELOPMENT AXIOMS ON THEIR EAR THE CAROLINAS HAVEN'T BECOME AN INTERNATIONAL TRANSPORTATION HUB BUT THE GERMANS HAVE BEEN ABLE TO KEEP OTHER COSTS PARTICULARLY LABOR SO LOW THAT THEY COULD AFFORD TO PAY MORE FOR SHIPPING NEVER MIND THAT THE CAROLINAS LACK THE CONCENTRATION OF RESEARCH UNIVERSITIES THAT EXISTS IN NEW ENGLAND AND CALIFORNIA THE GERMANS CONSIDER THE CAROLINAS' TOPNOTCH TRADE SCHOOLS MORE VALUABLE THAN HARVARD OR STANFORD AND GERMAN MANAGERS HAVE FOUND THE LAIDBACK SOUTHERN WORKERS MORE MALLEABLE THAN SOME OF THE AGGRESSIVE UNIONIZED PEOPLE UP NORTH THE WORKERS ARE VERY LOYAL SAYS WILLY RUEFENACHT HELIMA HELVETION'S PRESIDENT THE TUBING FACTORY WAS SUPPOSED TO BE CLOSED DURING CHRISTMAS WEEK BUT NOT ONE OF THE 60 EMPLOYEES GRIPED WHEN ASKED TO CLOCK IN TO HELP WITH A BURGEONING WORKLOAD OF COURSE PROBLEMS SOMETIMES RESULT FROM WHAT THE GERMANS CONSIDER A DIFFERENT WORK ETHIC MANFRED BAUMANN THE CHIEF ENGINEER FOR BAKER MATERIAL HANDLING RECALLS THAT HIS WORKERS ONCE LEFT A CRITICAL COMPONENT OUT OF THE FINAL BLUEPRINTS FOR A PRODUCT IT TURNED OUT THEY HAD ASSUMED THERE WOULD BE BUILTIN OPPORTUNITIES FOR FIXING MISTAKES AND LAPSES I'VE LEARNED I HAVE TO GIVE THEM MORE DETAILED INSTRUCTIONS THAN I HAVE TO GIVE IN GERMANY HE SAYS AND SHORTLY AFTER BAKER OPENED ITS SUMMERVILLE PLANT IN THE MID1980S ITS GERMAN MANAGERS SUSPECTED THAT THEY FACED LABOR PROBLEMS WHEN MANY OF THE WORKERS CALLED IN SICK ONE DAY THE REAL PROBLEM THEY SOON LEARNED IT WAS THE OPENING DAY OF HUNTING SEASON THE UNLIKELY ALLIANCE BEGAN THREE DECADES AGO AS THE CAROLINAS STRUGGLED TO TURN THEIR AGRARIAN ECONOMY INTO AN INDUSTRIAL ONE BOTH STATES CREATED AMBITIOUS TECHNICAL SCHOOLS TO TRANSFORM FARMERS INTO SKILLED PRODUCTION WORKERS AND THEY SOUGHT OUT FOREIGN MULTINATIONALS TO EMPLOY THE GRADUATES THE FIRST BIG GERMAN TRANSPLANTS PROVIDED CHEMICALS AND DYES AS WELL AS PRECISIONENGINEERED MACHINERY TO THE REGION'S TEXTILE INDUSTRY THEY INCLUDED BAYER AG WHICH SETTLED IN CHARLESTON SC AND BASF AG AND HOECHST AG BOTH OF WHICH LANDED IN CHARLOTTE THEN WORDOFMOUTH BROUGHT IN OTHER GERMAN COMPANIES SOUTH CAROLINA ESPECIALLY TURNED ON THE HARD SELL IN THE LATE 1960S RICHARD TUKEY THEN A BACKSLAPPING DEVELOPMENT OFFICIAL OFTEN TRAVELED TO GERMANY TO CALL ON INDUSTRIAL PROSPECTS BACK HOME HE POURED ON THE SOUTHERN HOSPITALITY KICKING OFF OKTOBERFESTS IN SPARTANBURG TREATING GERMAN EXECUTIVES TO LUNCHES WITH THE GOVERNOR AND AT STRATEGIC LOCATIONS FLYING THE WEST GERMAN FLAG CULTURE ALSO HELPED DRAW GERMAN COMPANIES TO CHARLESTON IN 1966 GEORGE STRUZYNA A BAYER ENGINEER PICKED THE CITY FOR THE COMPANY'S NEW CHEMICAL PLANT PARTLY BECAUSE IT WAS NEAR ITS TEXTILE CUSTOMERS AND HAD AFFORDABLE REAL ESTATE BUT ALSO BECAUSE IT SEEMED TO OFFER A CULTURED AMBIENCE THAT GERMANS WOULD EMBRACE BACK IN GERMANY HIS SOUTH CAROLINA PROPOSAL LEFT COMPANY DIRECTORS COLD SO HE INVITED THEM TO CHARLESTON AND THEY WERE CHARMED BY ITS EUROPEAN AIR COBBLESTONE STREETS WROUGHTIRON BALCONIES THE 18THCENTURY DOCK STREET THEATRE SOON AFTER THEIR VISIT GROUND WAS BROKEN BECAUSE THE GERMANS TENDED TO LOOK AT THE TEXTILERICH CAROLINAS AS A SINGLE REGION NORTH CAROLINA TOO BENEFITED FROM SOUTH CAROLINA'S EFFORTS BOTH STATES HAVE MARKETED THEMSELVES AS LOWWAGE AND LOWCOST AND SOUTH CAROLINA IN PARTICULAR DOLED OUT GENEROUS INCENTIVE PACKAGES LAST YEAR FOR INSTANCE IT OFFERED BMW 130 MILLION INCLUDING 71 MILLION IN TAX BREAKS ONE OF THE MOST LAVISH INCENTIVE PLANS EVER OFFERED TO ATTRACT A FOREIGN CAR PLANT IT BOUGHT THE LAND FOR THE PLANT SITE AND AGREED TO GET A RUNWAY EXTENDED AT GREENVILLESPARTANBURG AIRPORT TO ENABLE IT TO HANDLE BIG CARGO PLANES OF COURSE THE CAROLINAS ARE QUITE DIFFERENT AS SHOWN BY THE RELATIVE STRENGTHS OF THEIR ECONOMIES WITH ROBUST TOBACCO EXPORTS AND MONEY FLOWING INTO CHARLOTTE THE GROWING BANKING AND FINANCIAL CENTER NORTH CAROLINA WEATHERED THE RECESSION PARTICULARLY WELL WHILE EMPLOYMENT DIPPED SLIGHTLY IN 1991 THE TAR HEEL STATE MORE THAN RECOVERED LOST GROUND EMPLOYMENT JUMPED 3 LAST YEAR WELL ABOVE THE US AVERAGE OF 055 AND NORTH CAROLINA'S NUMBER OF JOBS IN 1992 EXCEEDED THE PRERECESSION TOTAL OUTPACING THE US AS A WHOLE WHICH STILL HADN'T CAUGHT UP SOUTH CAROLINA'S RECESSION WAS POSTPONED SOMEWHAT BY A SURGE IN CONSTRUCTION FOLLOWING 1989'S HURRICANE HUGO COASTAL DISASTER EMPLOYMENT FELL 27 IN 1991 BUT BOUNCED BACK 24 LAST YEAR AS THE PALMETTO STATE RECOVERED ECONOMIC VITALITY REMAINS SPOTTY FOREIGN INVESTMENT AROUND GREENVILLE AND SPARTANBURG HAS KEPT THE AREA THRIVING BUT CHARLESTON IS BRACING FOR A MAJOR NAVAL BASE CLOSING TOURISM INCLUDING AN INFLUX OF OVERSEAS VISITORS TO THE STATE'S GOLF COURSES AND BEACHES MITIGATED SOME OF THE RECESSIONARY IMPACT FOR GERMAN COMPANIES WANTING TO INVEST IN STARTUPS AND LONGTERM PROJECTS CHEAP REAL ESTATE MAKES THE CAROLINAS PARTICULARLY ATTRACTIVE UNLIKE THE BRITISH OR JAPANESE WHO ARE MORE PRONE TO ACQUIRE AMERICAN BUSINESSES OR FORM JOINT VENTURES GERMANS USUALLY INSIST ON STARTING OPERATIONS FROM SCRATCH IN 1979 KORF & FUCHS SYSTEMS INC DECIDED TO OPEN A FURNACE PLANT IN SALISBURY NC WHERE IT FOUND A BIG FACTORY BUILDING AND 35ACRE SITE FOR 500000 EMPLOYMENT HAS MUSHROOMED FROM THREE PEOPLE TO ABOUT 80 WE BOUGHT MORE REAL ESTATE THAN WE NEEDED BUT WE BOUGHT FOR FUTURE GROWTH SAYS KARL BLEIMANN A FORMER PRESIDENT AND THE PRICE WAS SO DAMN GOOD WE COULDN'T RESIST IN THE CAROLINAS GERMANS HAVE ALSO FOUND A WORK FORCE WILLING TO TOLERATE MANAGEMENT PRACTICES THAT AMERICANS OFTEN FIND IDIOSYNCRATIC IF NOT OBNOXIOUS LIKE MANY GERMAN COMPANIES THE ROBERT BOSCH GMBH PLANT IN CHARLESTON INSISTS ON AN ORDERLY WORKPLACE SWEATERS AND JACKETS AREN'T DRAPED OVER CHAIRS THEY ARE TO BE STOWED IN LOCKERS EMPLOYEES ARE ORGANIZED BY ASSIGNED CODE NAMES MAKING THEM SOUND LIKE LIBRARY CALL NUMBERS THE TOP TRAINING MANAGER IS KNOWN AS UOCH/TRN AND THAT IS HOW HIS MEMOS ARE ADDRESSED EVEN THOUGH HIS NAME IS JAMES WINKLER UNDER HIM ARE UOCH/TRN1 UOCH/TRN2 AND SO FORTH I HATED IT AT FIRST SAYS MR WINKLER WHO REPORTS TO THE PLANT MANAGER UOCH/PM PEOPLE SOMETIMES REFER TO IT AS ALPHABET SOUP' SAYS MAS1 OR MARKETING SERVICES' MARGRET NORDQUIST BUT THE EMPLOYEES HAVE ADAPTED YOU AVOID HAVING TO WRITE ALL THOSE LONG NAMES AND IF THE PERSON IN A PARTICULAR JOB CHANGES THE CORRESPONDENCE WILL STILL GO THROUGH SUCH ADAPTABILITY HAS MORE THAN MADE UP FOR THE SKILL LEVELS OF MANY OF THE WORKERS IN FACT IT HAS ENABLED COMPANIES SUCH AS BOSCH TO MOLD EMPLOYEES THE BOSCH WAY BOSCH WON'T EVEN CONSIDER AN APPLICANT FOR A PRODUCTIONLINE JOB WHO HASN'T ATTENDED A STATEFUNDED PREEMPLOYMENT TRAINING PROGRAM COMPLETE WITH A SESSION ON BOSCH HISTORY IT REQUIRES LABORERS WHO WISH TO ADVANCE INTO SOME OF THE BEST FACTORY JOBS TO ATTEND A 2 1/2YEAR TRAINING PROGRAM IN CHARLESTON THAT IS MODELED AFTER BOSCH'S APPRENTICE SYSTEM IN GERMANY THE APPRENTICE PROGRAM INVOLVES HARD WORK AND STARTING PAY HALF THAT OF TOPSKILLED EMPLOYEES APPRENTICES TAKE 1000 HOURS OF COURSES ON SUBJECTS SUCH AS PNEUMATICS AND PHYSICS TO PREPARE THEM TO ASSEMBLE BOSCH'S AUTO FUEL INJECTORS WHICH ARE MEASURED IN DIMENSIONS AS SMALL AS 1/100TH OF A HUMAN HAIR ALTHOUGH THE WORKERS EVENTUALLY USE HIGHTECH MACHINERY THEY BEGIN BY SPENDING SOME 60 HOURS LEARNING TO HANDFILE METAL SCRAPS TO PRECISE DIMENSIONS I GOT REAL TIRED OF FILING SAYS STEPHANIE HERNDON A 23YEAROLD APPRENTICE GRADUATE IN A DEEP SOUTHERN DRAWL I DO BELIEVE THEY WERE TRYING TO INSTILL PATIENCE IN US GERMAN WAYS DON'T ALWAYS SIT WELL WITH THE HALFAMILLION AMERICANS WHO WORK FOR THEM OF COURSE ONE TRICKY ISSUE IS THE GERMAN MANAGERS' HABIT OF KEEPING THEIR OFFICE DOORS CLOSED IN CHILLY GERMANY THEY DO SO TO CONSERVE HEAT WHICH IS EXPENSIVE MOREOVER CLOSED DOORS TO GERMANS ARE ORDERLY BUT TO BAKER'S AMERICAN WORKERS WHO WERE USED TO AFFABLE GOODOLDBOY SOUTHERN BOSSES A CLOSED DOOR INDICATED AN ALOOF UNCARING BOSS IT DROVE PEOPLE NUTS SAYS MS LUTYNSKI THE EXECUTIVE SECRETARY MORALE HAS IMPROVED SINCE MITCH MILOVITCH AN ATLANTAN BECAME PRESIDENT IN 1991 HE GREETS STAFFERS AT THEIR DESKS VISITS THE FACTORY FLOOR AND HAS COFFEE WITH PRODUCTION WORKERS EVEN MORE IMPORTANT ISSUES CONCERN PAY AND WORKING HOURS AT HOME IN GERMANY GERMANS HAVE SOME OF THE WORLD'S HIGHEST WAGES AND LONGEST VACATIONS WHEN TRANSFERRED TO US DIVISIONS THEY TYPICALLY KEEP THEIR SIXPLUSWEEK VACATIONS ANNOYING US WORKERS STUCK WITH THE SKIMPIER AMERICAN PLAN THEY'RE CONSTANTLY GONE WHILE THE POOR AMERICAN STIFF IS HERE DOING HIS WORK COMPLAINS EVELYN ALBERT A FORMER BOSCH SECRETARY US UNIONS VIEW SUCH DISPARITIES AS AN ORGANIZING WEAPON THE UNITED AUTO WORKERS WORRIES THAT BMW WILL PAY ITS SOUTH CAROLINA WORKERS LESS THAN THE 17ANHOUR THE AVERAGE US AUTO WORKER MAKES THE UNION PLANS TO MAKE WAGES AN ISSUE TO WIN SUPPORT WHEN THE PLANT OPENS IN 1995 THE UNION HAS MADE INROADS AT GERMAN COMPANIES IN THE CAROLINAS THREE YEARS AGO IT GOT REPRESENTATION RIGHTS AT MERCEDES'S FREIGHTLINER PLANT IN MOUNT HOLLY NC BUT IN THE CAROLINAS MOST EMPLOYEES HAVE WANTED NO PART OF UNIONIZATION THEY CHOOSE INSTEAD TO VENT THEIR FRUSTRATIONS IN LESS CONFRONTATIONAL WAYS BORED WITH SOME OF THE GERMAN APPRENTICESHIP SYSTEM HE HAD TO TEACH MIKE BRYAN A TRAINER AT BOSCH DESIGNED A PROJECT MORE RELEVANT TO HIMSELF AND HIS FRIENDS WHO GREW UP RACING GOCARTS AND RESTORING CORVETTES HE DEVISED A THREEMONTH PROJECT FOR THE APPRENTICES TO BUILD A SCALEMODEL REPLICA OF A 1904 HARLEYDAVIDSON AND AS FOR MS HERNDON SHE IS NOW GRATEFUL FOR ALL THOSE BORING HOURS OF FILING METAL HER BOSCH FACTORY JOB PAYS 1163 AN HOUR A LOT BETTER THAN A PREVIOUS STINT WAITING TABLES AT HOWARD JOHNSON'S IT'S A GOOD OPPORTUNITY SHE SAYS SEE RELATED LETTERS LETTERS TO THE EDITOR HEY GIVE NEW YORK WORKERS A BREAK WSJ JUNE 24 1993 9305040091 YY93 MM06 9306230163 930623 HEARD ON THE STREET RJR'S OFFERING OF NABISCO SHARES LEADS TO QUESTIONS ON QUASISTOCK STRUCTURE BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EIGHT YEARS AGO TOBACCO COLOSSUS RJ REYNOLDS SWALLOWED UP FOOD GIANT NABISCO TO FORM WHAT EVENTUALLY BECAME RJR NABISCO HOLDINGS THIS WEEK NABISCO WILL PARTIALLY REEMERGE FROM THE BELLY OF THE WHALE BUT IN A STATE SOME MONEY MANAGERS FIND LESS THAN APPETIZING AS SOON AS TOMORROW THE NEW YORK STOCK EXCHANGE EXPECTS TO BEGIN TRADING STOCK IN RNNABISCO GROUP WHICH REPRESENTS A 25 INTEREST IN THE NABISCO FOOD OPERATIONS AS A BIG BOARD OFFICIAL DESCRIBES IT RNNABISCO IS AN INSTRUMENT TO RECEIVE A PARTICULAR REVENUE STREAM FROM THE PARENT COMPANY NAMELY RJR NABISCO HOLDINGS QUITE A FEW MONEY MANAGERS ARE TURNING THEIR NOSES UP AT THIS NEW QUASI STOCK THEY DISLIKE ITS ODDBALL STRUCTURE AND THINK RNNABISCO SHARES IF PRICED AT THE EXPECTED 17 TO 19 WILL BE NO BARGAIN IF ONE WANTS TO HOLD ANY RJR SECURITY AT ALL THEY SUGGEST THE BEATENDOWN STOCK OF THE PARENT MAY BE A BETTER BET THAN THE SPIFFEDUP OFFSPRING HERE'S THE PITCH FOR THE PENDING DEAL AS HURLED BY DEALMAKERS KOHLBERG KRAVIS ROBERTS & CO AND WALL STREET UNDERWRITER MORGAN STANLEY INVESTORS WILL GET RIGHTS TO PART OF THE EARNINGS OF RJR NABISCO'S FOOD BUSINESS HOME OF ALL THOSE RITZ CRACKERS AND LIFESAVERS AND GREY POUPON WITHOUT OWNING THE COMPANY'S TOBACCO HALF WHICH NOBODY WANTS A PART OF ANYMORE FORGET ALL THOSE WORRIES ABOUT DECLINING US CIGARETTE CONSUMPTION PRICE WARS AND TOBACCO LITIGATION THAT SOUNDS PROMISING ENOUGH BUT THE TWO HALVES OF THE COMPANY AREN'T ACTUALLY BEING LEGALLY SEPARATED THE NEW RNNABISCO HOLDERS WOULD STILL BE EXPOSED BOTH DIRECTLY AND INDIRECTLY TO THE HUGE RISKS OF RJR'S TOBACCO BUSINESS AND RJR CAN RECOMBINE ITS TWO STOCKS WHENEVER IT WANTS TO ANYWAY AMONG THE SKEPTICS IS STANDARD & POOR'S CORP WHICH HAS ONE WORD FOR THIS UNUSUAL 17 BILLION OFFERING AVOID RJR NABISCO IS JUST TRYING TO REJIGGER THE PIE IT'S AN ACCOUNTING TRANSACTION SAYS TERRY BIVENS WHO FOLLOWS FOOD TOBACCO AND BEVERAGE COMPANIES AT ARGUS RESEARCH AND SAYS HE WOULDN'T BUY THE RNNABISCO SHARES IF YOU REALLY WANT TO BUY A GOOD FOOD STOCK NOW YOU CAN BUY ONES EVERY BIT AS GOOD OR BETTER AT COMPARABLE MULTIPLES SUCH AS SARA LEE OR CAMPBELL SOUP BOTH AT ROUGHLY 16 TIMES PROJECTED 1993 EARNINGS RNNABISCO'S MULTIPLE IS EXPECTED TO BE ABOUT 14 THE NEW OFFERING ALSO SHOWS SOMETHING ABOUT EVOLVING NEW YORK STOCK EXCHANGE STANDARDS ONCE THE BIG BOARD WAS SO CONSERVATIVE ABOUT ITS LISTINGS THAT IT WOULDN'T EVEN ALLOW WARRANTS TO BE TRADED NOW IT SEEMS ALMOST ANYTHING GOES A BIG BOARD SPOKESMAN SAYS WE'RE TREATING IT AS ANOTHER CLASS OF STOCK OF AN ALREADY LISTED COMPANY BUT PRIVATELY AT LEAST ONE BIG BOARD DIRECTOR QUESTIONS WHETHER THE EXCHANGE SHOULD BE LISTING SUCH A QUASI STOCK THE EXTREMELY COMPLEX STOCK OFFERING IS EXPECTED TO GET EASY APPROVAL AT A SPECIAL RJRNABISCO SHAREHOLDERS MEETING TODAY IN PARSIPPANY NJ THE OFFERING PRICE COULD BE SET AS SOON AS TONIGHT WITH TRADING TO BEGIN THE NEXT DAY UNDER THE SYMBOL NBG WILL THIS DEAL FLY IT'S HARD TO FIND PEOPLE ON WALL STREET WILLING TO CRITICIZE IT AT LEAST ON THE RECORD AFTER ALL MOST TOP WALL STREET BROKERAGE FIRMS ARE INVOLVED IN TRYING TO MAKE THE HUGE UNDERWRITING A SUCCESS ONE REASON SOME MONEY MANAGERS AREN'T BUYING THE OFFERING IS THE VALUATION IT PUTS ON THE NABISCO FOOD BUSINESS HERE'S THE MATH THE GLOBAL OFFERING OF 93 MILLION RNNABISCO SHARES REPRESENTS 25 OF THE NABISCO FOOD BUSINESS WITH THE REMAINDER RETAINED BY RJR AT 18 A SHARE THE OFFERING VALUES THE NABISCO FOOD BUSINESS AT ABOUT 67 BILLION BASED ON YESTERDAY'S RJR CLOSING PRICE OF 5 3/8 ALL OF RJR NABISCO HAS A MARKET VALUE OF JUST 61 BILLION THE COMPANY'S INVESTMENT BANKERS FIGURE THAT INVESTORS WILL LIVE WITH THE VALUATION ANOMALY BECAUSE IF NABISCO WERE ACTUALLY SOLD IT COULD FETCH AT LEAST 6 BILLION OR SO HOWEVER NO HOSTILE TAKEOVER OF THE OTHER 75 OF RNNABISCO IS POSSIBLE A HOSTILE BIDDER WOULD HAVE GO AFTER ALL OF RJR AT A MULTIPLE OF ABOUT 14 TIMES PROJECTED 1993 EARNINGS THE NEW STOCK ISN'T OUT OF LINE WITH OTHER TOP FOOD COMPANIES STILL EXPERTS ON INITIAL PUBLIC OFFERINGS GENERALLY FEEL THERE ARE PLENTY OF REAL IPOS OUT THERE THAT ARE MORE PROMISING THAN THIS OFFER THE OFFERING'S 140PAGE PROSPECTUS MAKES IT CLEAR THAT HOLDERS OF RNNABISCO STOCK WILL CONTINUE TO BE SUBJECT TO ALL OF THE RISKS ASSOCIATED WITH AN INVESTMENT IN RJRNABISCO THAT MEANS TOBACCOLIABILITY LITIGATION NEW FEDERAL TAXES ON SMOKES AND EVERYTHING ELSE THAT HAS HELPED BATTER THE PRICES OF TOBACCO SHARES INCLUDING RJR NABISCO WHY DO YOU WANT TO BUY SOMEONE ELSE'S HEADACHES SAYS JAY GOTTLIEB THE PUBLISHER OF NEW ISSUES OUTLOOK NEWSLETTER IN WHITE PLAINS NY RNNABISCO TO ME IS LIKE BUYING A USED CAR IT MAY BE GOOD YOU MAY GET GOOD MILEAGE OUT OF IT BUT CHANCES ARE YOU'RE JUST BUYING SOMEONE ELSE'S HEADACHES MR GOTTLIEB'S NEWSLETTER PREFERS PUTTING IPO INVESTMENTS INTO SUCH OTHER PENDING DEALS AS INDUSTRIAL SCIENTIFIC APPLIANCE RETAILER PC RICHARD & SONS KEY TECHNOLOGY IMAGE INDUSTRIES AND NATIONAL RECORD MART A BIG BOARD OFFICIAL SAYS THE EXCHANGE CONCLUDED THAT THE RNNABISCO OFFERING IS ROUGHLY ANALOGOUS TO USX CORP SEPARATING ITS ENERGY AND STEEL BUSINESSES INTO SEPARATELY TRADED STOCKS IN 1991 OR RALSTON PURINA'S SIMILAR PROPOSAL FOR CONTINENTAL BAKING RJR FOR ITS PART WOULD PREFER TO COMPARE ITS OFFERING WITH GENERAL MOTORS' ISSUANCE OF CLASS H AND CLASS E SHARES WHICH WERE PEGGED TO RESULTS OF THE AUTO MAKER'S HUGHES AIRCRAFT CO AND ELECTRONIC DATA SYSTEMS BUSINESSES RJR DENIES THAT ITS ARRANGEMENT IS COZIER THAN GM'S BUT THERE ISN'T ANY PRECEDENT FOR A SITUATION IN WHICH A NEW STOCK IS SPUN OUT BY A COMPANY FACING AS MUCH LEGAL TROUBLE AS RJR NABISCO ANY NET LOSSES OF THE RJR TOBACCO BUSINESS WARNS THE PROSPECTUS WILL REDUCE THE LEGALLY AVAILABLE FUNDS FOR RNNABISCO HOLDERS IN GIVING THE OFFERING AN AVOID RATING NEWISSUES ANALYST ROBERT NATALE OF STANDARD & POOR'S NOTES THAT MANY INVESTORS HAVE ANXIOUSLY AWAITED A CHANCE TO OWN NABISCO FOODS AGAIN SEPARATED FROM RJR'S TOBACCO OPERATIONS HOWEVER HE SHIES AWAY FROM THE DEAL BECAUSE OF THE COMPLEXITY OF THE DEAL THE CONTINUED POTENTIAL LEGAL TIE TO RJR'S TOBACCO LITIGATION AND THE GENERALLY LACKLUSTER INTEREST IN BRANDED FOODPRODUCT COMPANY SHARES AT THE MOMENT SOME TRADERS SAY THAT ASSUMING THE OFFERING GOES OFF AT 18 THEY EXPECT A POSSIBLE RISE TO 20 OR SO IN SUBSEQUENT TRADING DAYS BUT THEN THEY ENVISION MANY BIG INSTITUTIONAL INVESTORS SELLING OUT AS SOON AS THEY MAKE A PROFIT MR BIVENS OF ARGUS RESEARCH SAYS SOME OF THE CRITICISM OF THE RNNABISCO OFFERING HAS TENDED TO BE OVERLY HARSH THE NABISCO FOOD OPERATIONS WITH 44000 EMPLOYEES AND ITS ENVIABLE STABLE OF BRANDNAME COOKIES CRACKERS GUM AND PET FOODS ARE SOLID HE SAYS YET WITH FOOD COMPANIES OUT OF FAVOR AND TOBACCO STOCKS UNDER FIRE HE CONCLUDES IT'S A BAD TIME TO BE BRINGING THIS OUT 9306230162 930623 WHAT'S NEWS BUSINESS AND FINANCE STEEL IMPORTS WOULD BE HIT WITH TARIFFS AVERAGING 365 UNDER A COMMERCE DEPARTMENT ACTION THE MOVE WHICH IS STILL SUBJECT TO AN ITC RULING HEIGHTENS TRADE TENSIONS BETWEEN THE US AND MAJOR TRADING PARTNERS THE DEPARTMENT'S DECISION WAS A RESPONSE TO US STEELMAKERS' COMPLAINTS ABOUT DUMPING AND UNFAIR SUBSIDIES FOR FOREIGN PRODUCERS BANKS ARE LOWERING BORROWING COSTS FOR LARGE AND MIDSIZE COMPANIES INDICATING THE CREDIT CRUNCH IS EASING THE LENDERS HAVE BEEN PROMPTED BY THEIR STRONG BALANCE SHEETS AND A NEED TO FIND NEW SOURCES OF EARNINGS HOME BUILDING IS AMONG THE INDUSTRIES BEING AGGRESSIVELY TARGETED BY BANKS FOR NEW LOANS BANK INDUSTRY OFFICIALS ATTRIBUTE THE TURNABOUT PRIMARILY TO STRENGTHENING HOUSING DEMAND IN MANY PARTS OF THE COUNTRY THE CLINTON ADMINISTRATION IS SCALING BACK ITS GOALS IN TRADE TALKS WITH JAPAN IN THE WAKE OF THE MIYAZAWA GOVERNMENT'S FALL US OFFICIALS BELIEVE THEY HAVE THEIR BEST CHANCES IN AREAS IN WHICH JAPAN'S POLITICAL LEADERS HAD ALREADY CUT DEALS WITH THAT COUNTRY'S POWERFUL BUREAUCRACY PHILIP MORRIS RJR AND FOUR ALLIES FILED A SUIT AGAINST THE EPA FOR RULING THAT SECONDHAND CIGARETTE SMOKE CAUSES LUNG CANCER SEEKING TO HAVE THE REPORT DECLARED NULL AND VOID KMART EXPECTS FISCAL SECONDQUARTER PROFIT SIGNIFICANTLY BELOW YEAREARLIER LEVELS BECAUSE OF WEAK APPAREL SALES ITS STOCK FELL 150 OR 69 TO 20125 AND THE NEWS CAUSED OTHER RETAILERS' SHARES TO FALL AS WELL LLOYD'S OF LONDON POSTED A 433 BILLION LOSS FOR ITS LATEST REPORTING YEAR UNDERSCORING WORRIES ABOUT THE INSURANCE MARKET'S FUTURE THE LOSS WAS DUE IN LARGE PART TO US CLAIMS FOR ASBESTOSIS AND POLLUTION COVERAGE ZENITH DATA SAID IT WILL ACQUIRE A 199 INTEREST IN PACKARD BELL IN YET ANOTHER CONSOLIDATION IN THE PERSONALCOMPUTER MARKET AS PART OF THE PACT THE TWO COMPANIES WILL JOINTLY DESIGN AND MANUFACTURE DESKTOP COMPUTERS THE CLINTONS SOUGHT TO PERSUADE WAVERING SENATE DEMOCRATS TO SUPPORT THE VERSION OF THE PRESIDENT'S DEFICITREDUCTION PROGRAM THAT WAS APPROVED BY THE CHAMBER'S FINANCE PANEL THE DOUBTERS ARE CONCERNED ABOUT CUTS IN MEDICARE AND REDUCTIONS IN TAX BREAKS FOR SMALL BUSINESSES GM FACES GREATER PRESSURE TO RECALL PICKUP TRUCKS WITH SIDEMOUNTED GAS TANKS A US AGENCY CITED STATISTICS AND PAST STATEMENTS BY GM OFFICIALS IN A CHALLENGE TO THE AUTO MAKER TO BACK UP ITS SAFETY CLAIMS FOR THE TRUCKS DAMON SAID ANOTHER POSSIBLE BUYER EXPRESSED INTEREST PRIOR TO THE CONCERN'S ACCEPTANCE OF A 258 MILLION OFFER FROM NATIONAL HEALTH LABS MEANWHILE THE WISCONSIN INVESTMENT BOARD WHICH OWNS 96 OF DAMON IS OPPOSING THE ACCEPTED OFFER CABLE & WIRELESS POSTED A 43 JUMP IN PRETAX PROFIT FOR ITS LATEST FISCAL YEAR THE UK TELECOMMUNICATIONS COMPANY DOESN'T PLAN ANY BIG STRATEGY CHANGES FOLLOWING RIVAL BRITISH TELECOMMUNICATIONS' 43 BILLION ALLIANCE WITH MCI OF THE US STOCKS FELL ON A SERIES OF POOR EARNINGS FORECASTS THE DOW JONES INDUSTRIALS DROPPED 1329 TO 349753 BOND PRICES EDGED HIGHER THE DOLLAR ROSE GM'S ADAM OPEL UNIT SAID IT WILL BE VERY DIFFICULT FOR THE GERMAN CAR MAKER TO POST A PROFIT IN 1993 HERALDING A DEEPERTHANEXPECTED DROP IN THE PARENT'S OVERALL EUROPEAN EARNINGS BONDS LEHMAN BROTHERS TREASURY INDEX 521094 UP 204 COMMODITIES OIL 1842 A BARREL OFF 20 CENTS DOW JONES FUTURES INDEX 12005 OFF 044 SPOT INDEX 12026 OFF 003 DOLLAR 11085 YEN UP 025 16965 MARKS UP 00082 9306230161 930623 FINANCING BUSINESS US LONG DISTANCE CORP US LONG DISTANCE CORP SAN ANTONIO SAID IT SOLD 1550000 COMMON SHARES AT 12125 A SHARE OWNERS OF THE COMPANY'S 13 SENIOR SUBORDINATED NOTES ALSO SOLD 450000 SHARES THE TELECOMMUNICATIONS CONCERN SAID IT HAD 9800000 SHARES OUTSTANDING BEFORE THE OFFER US LONG DISTANCE SAID IT WILL USE THE ESTIMATED 174 MILLION IN NET PROCEEDS TO RETIRE ITS 105 MILLION OF SENIOR SUBORDINATED NOTES ADD TO WORKING CAPITAL AND REDUCE DEBT 9306230160 930623 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 HIGH 2 3/4 LOW 2 7/8 NEAR CLOSING BID 2 15/16 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 312 30 TO 44 DAYS 313 45 TO 119 DAYS 320 120 TO 149 DAYS 322 150 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 319 30 DAYS 321 60 DAYS 324 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 270 THREE MONTHS 287 SIX MONTHS 311 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 315 ONE MONTH 320 THREE MONTHS 337 SIX MONTHS BANKERS ACCEPTANCES 307 30 DAYS 309 60 DAYS 312 90 DAYS 317 120 DAYS 320 150 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 5/16 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 21 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 310 13 WEEKS 319 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 705 60 DAYS 713 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 708 60 DAYS 718 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306230159 930623 INTERNATIONAL RUSSIA AUCTIONS CAR MAKER FOR CASH INSTEAD OF VOUCHERS BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW IT JUST GOT A LITTLE EASIER FOR FOREIGNERS TO INVEST IN THE NASCENT RUSSIAN STOCK MARKET SHARES IN ZIL THE NEWLY PRIVATIZED TRUCK AND LIMOUSINE MAKER WERE AUCTIONED FOR CASH YESTERDAY LAUNCHING A NEW STAGE IN RUSSIA'S PRIVATIZATION PROGRAM SHARES IN OTHER BIG COMPANIES GO ON THE BLOCK IN COMING MONTHS THE CASH AUCTION COVERED ONLY 5 OF ZIL'S SHARES AND ONLY A HANDFUL OF BUYERS PARTICIPATED BUT THE BIDDING HELPED ESTABLISH A PRICE FOR THE SHARES THAT WILL BE IMPORTANT AS RUSSIA DEVELOPS A SECONDARY MARKET RUSSIA STILL DOESN'T HAVE ANY OFFICIAL STOCK MARKET TRADING AS THE BULK OF INDUSTRY IS ONLY BEGINNING TO ISSUE SHARES UNDER PRIVATIZATION UNTIL NOW SHARES HAVE BEEN AVAILABLE MAINLY IN EXCHANGE FOR PRIVATIZATION VOUCHERS THOUGH SOME ADHOC SECONDARY TRADING HAS STARTED INVESTORS PURCHASED THE 51215 SHARES OFFERED IN ZIL RAISING 300278 BUT A LOW TURNOUT AND FRACTURED AUCTION SYSTEM KEPT THE BIDS LOWER THAN HOPED FOR THE AUCTION'S ORGANIZER SAID ZIL SHARES SOLD FOR ABOUT 6 EACH FOREIGNERS ARE ALLOWED TO BUY SHARES THROUGH THE VOUCHER AUCTION SYSTEM AND SOME ALREADY HAVE OTHERS ARE COMPETING TO BECOME MAJOR SHAREHOLDERS IN PRIVATIZED RUSSIAN COMPANIES IN EXCHANGE FOR FINANCIAL INVESTMENTS AND TECHNICAL COOPERATION BUT FOR FOREIGN INVESTORS WHO DON'T WANT THE HASSLE OF FINDING VOUCHERS AND DON'T WANT THE COMMITMENT OF A BROADER RELATIONSHIP WITH A RUSSIAN COMPANY THE CASH AUCTIONS COULD PROVE ATTRACTIVE THE NEXT COMPANIES TO BE AUCTIONED FOR CASH PROBABLY IN JULY WILL BE TWO HUGE COMPANIES FROM CENTRAL SIBERIA THE MACHINE BUILDER URALMASH AND THE INDUSTRIAL PIPE MAKER PERVOURALSKY NOVOTRUBNY ZAVOD OTHERS IN THE PIPELINE INCLUDE VLADIMIRSKY KHIMICHESKY ZAVOD A CHEMICAL PLANT IN VLADIMIR OMSKENERGO AN ELECTRICAL ENERGY PLANT IN OMSK KHIMVOLOKNO A CHEMICAL FIBERS PRODUCER IN KEMEROVO AND GURIEVSKY METALLURGICHESKY ZAVOD A METALS PLANT THAT ALSO IS IN KEMEROVO 9306230158 930623 BUSINESS BRIEF MAGMA COPPER CO SECONDQUARTER EARNINGS ARE EXPECTED TO DECREASE MAGMA COPPER CO SAID IT WILL REPORT LOWER SECONDQUARTER EARNINGS BECAUSE OF THE EFFECTS OF HEAVY WINTER RAINS ON MINING AND PROCESSING IN ARIZONA THE TUCSON ARIZ COMPANY SAID IT EXPECTS TO REPORT FULLY DILUTED EARNINGS OF BETWEEN EIGHT CENTS AND 11 CENTS A SHARE COMPARED WITH FULLY DILUTED EARNINGS OF 26 CENTS A SHARE A YEAR EARLIER NET INCOME WAS 12 MILLION ON SALES OF ABOUT 2038 MILLION A YEAR EARLIER IN ADDITION THE COMPANY SAID IT EXPECTS THE STARTUP OF ITS ROBINSON COPPER AND GOLD MINE NEAR ELY NEV TO BE DELAYED A YEAR TO 18 MONTHS UNTIL THE FIRST HALF OF 1996 BY THE PREPARATION OF AN ENVIRONMENTAL IMPACT STATEMENT REQUIRED BY THE BUREAU OF LAND MANAGEMENT SEPARATELY MAGMA SAID IT FORMED A JOINT VENTURE WITH A UNIT OF BROKEN HILL PROPRIETARY CO MELBOURNE AUSTRALIA TO PURSUE COPPER INTEREST IN CHILE IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE MAGMA WAS QUOTED AT 11625 DOWN 25 CENTS 9306230157 930623 BUSINESS BRIEF ADOLPH COORS CO UNIT SAYS SALES HIT HIGH IN LATEST 12WEEK PERIOD COORS BREWING CO SAID ITS BEER AND OTHER MALT BEVERAGE SALES TO WHOLESALERS ROSE TO A RECORD 5113000 BARRELS IN THE SECOND 12WEEK QUARTER ENDED JUNE 13 A 09 INCREASE FROM THE YEAR EARLIER COORS BREWING IS A UNIT OF ADOLPH COORS CO COORS BREWING HAS INCLUDED OTHER MALT BEVERAGES IN ITS SALES REPORTING LATELY BECAUSE OF THE ADDITION OF ZIMA TO ITS PRODUCT LINE ZIMA IS A CLEAR MALT BEVERAGE BUT NOT A BEER COORS ATTRIBUTED THE BOOST IN OVERALL SALES TO INCREASES IN SALES OF KILLIAN'S COORS LIGHT AND ZIMA 9306230156 930623 BUSINESS BRIEF NOBLE AFFILIATES INC UNIT TO BUY MAJORITY STAKES IN FREEPORTMCMORAN SITES NOBLE AFFILIATES INC ARDMORE OKLA SAID A SUBSIDIARY SIGNED A LETTER OF INTENT TO BUY MAJORITY INTERESTS IN CERTAIN OIL AND NATURALGAS PROPERTIES IN THE GULF OF MEXICO FROM FREEPORTMCMORAN INC FOR 100 MILLION THE ENERGY EXPLORATION AND PRODUCTION COMPANY SAID IT PLANS TO PAY WITH CASH ON HAND FOR THE 70 STAKE IN THREE BLOCKS PREVIOUSLY LEASED FROM THE FEDERAL GOVERNMENT FREEPORTMCMORAN INC AN ENERGY AND NATURAL RESOURCES COMPANY BASED IN NEW ORLEANS DISCOVERED OIL AND GAS ON THE PROPERTIES IN 1992 THE FIELD IS LOCATED 100 MILES OFFSHORE LOUISIANA PRODUCTION FACILITIES AREN'T YET COMPLETED AND THEY AREN'T EXPECTED TO BE OPERATING UNTIL LATE 1994 OR EARLY 1995 THE TRANSACTION IS SUBJECT TO FURTHER NEGOTIATION AND TO COMPLETION OF A DEFINITIVE AGREEMENT SCHEDULED TO TAKE PLACE BY AUG 1 9306230155 930623 FINANCING BUSINESS NOVA CORP NOVA CORP OF ALBERTA SAID IT AGREED WITH A CANADIAN UNDERWRITING GROUP TO ISSUE IN CANADA 150 MILLION CANADIAN DOLLARS US1178 MILLION OF 83 DEBENTURES DUE JULY 15 2003 THE CALGARY ALBERTA PIPELINE AND CHEMICALS COMPANY SAID IT WILL USE PROCEEDS FROM THE SALE TO FINANCE EXPANSION OF ITS ALBERTA GAS PIPELINE SYSTEM AND TO REPAY EXISTING DEBT ASSOCIATED WITH THE EXPANSION THE COMPANY SAID THE DEBENTURES WILL FORM PART OF THE PIPELINE SYSTEM'S CAPITAL STRUCTURE USED TO CALCULATE ITS TARIFFS 9306230154 930623 NEW JERSEY LEGISLATORS PASS 159 BILLION BUDGET TRENTON NEW JERSEY'S REPUBLICANCONTROLLED LEGISLATURE PASSED A 159 BILLION BUDGET FOR FISCAL 1994 INCLUDING A POSSIBLE TAX CUT DESPITE UNANIMOUS OPPOSITION BY DEMOCRATIC LAWMAKERS GOV JIM FLORIO A DEMOCRAT VETOED LAST YEAR'S REPUBLICAN BUDGET BUT IS EXPECTED TO SIGN THE 1994 BUDGET BY NEXT WEEK BECAUSE ITS SPENDING PACKAGE IS VERY SIMILAR TO HIS OWN PROPOSAL YOU CAN'T COMPLAIN ABOUT GETTING 99 OF WHAT YOU WANTED A SPOKESMAN FOR THE GOVERNOR SAID THE NEW BUDGET FOR THE YEAR ENDING JUNE 30 1994 INCLUDES 155 BILLION IN APPROPRIATIONS AND A 410 MILLION SURPLUS INCLUDING 150 MILLION SET ASIDE FOR A TAXPAYER RELIEF FUND WHICH MAY BE USED LATER FOR A TAX CUT THE TOTAL BUDGET UP 64 FROM LAST YEAR'S 149 BILLION BUDGET INCLUDES NO NEW TAXES WHILE THE REPUBLICANS' BUDGET PACKAGE DEVOTES ONLY 12 LESS TO APPROPRIATIONS THAN GOV FLORIO'S PROPOSAL THEIR 410 MILLION SURPLUS PROJECTION FAR EXCEEDS THE GOVERNOR'S 147 MILLION PROJECTION DEMOCRATS SAY THE HIGHER RESERVE IS AN ILLUSION JOHN LYNCH SENATE MINORITY LEADER SAID THIS BUDGET IS BEING HELD UP BY FISCAL GIMMICKS DESIGNED SOLELY TO LAST THROUGH THE NOVEMBER ELECTIONS A SPOKESWOMAN FOR STATE SENATE REPUBLICANS SAID THE BUDGET IS BASED ON FIGURES PROVIDED BY THE STATE TREASURER'S OFFICE 9306230153 930623 WHO'S NEWS SUPREMA SPECIALTIES INC SUPREMA SPECIALTIES INC PATERSON NJ STUART D SCHWARTZ 40 YEARS OLD WAS NAMED VICE PRESIDENT OF ADMINISTRATION AND CHIEF FINANCIAL OFFICER AT THIS MAKER OF GOURMET NATURAL CHEESE PRODUCTS MR SCHWARTZ WHO HAD BEEN PRESIDENT AND FOUNDER OF SDS FINANCIAL SERVICES INC A BUSINESS AND FINANCIALSERVICES CONCERN AND VICE PRESIDENT OF FINANCE AT ALPINE LACE BRANDS INC A CHEESE MARKETER IN MAPLEWOOD NJ SUCCEEDS MICHAEL A FLOWER WHO RECENTLY RESIGNED 9306230152 930623 INTERNATIONAL CABLE & WIRELESS PRETAX NET JUMPED FIRM PLANS NO BIG CHANGE IN STRATEGY BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON SO WHAT IF STOCK TRADERS ARE SPECULATING ABOUT ITS FUTURE SO WHAT IF ITS ARCHCOMPETITOR JUST FORGED AN UNPRECEDENTED TRANSATLANTIC ALLIANCE CABLE & WIRELESS PLC SAYS IT ISN'T WORRIED EXECUTIVES OF THE TELECOMMUNICATIONS COMPANY SPEAKING AFTER A NEWS CONFERENCE HERE AT WHICH THEY ANNOUNCED A 43 PRETAX PROFIT JUMP FOR THE FISCAL YEAR ENDED MARCH 31 AND A 12 DIVIDEND INCREASE INDICATED THEY DON'T PLAN ANY BIG TIEUPS OR STRATEGY CHANGES FOLLOWING ARCHRIVAL BRITISH TELECOMMUNICATIONS PLC'S 43 BILLION ALLIANCE WITH MCI COMMUNICATIONS INC THE WORLD'S BEST ALLIANCE IS ALREADY IN BEING AND IT'S CALLED THE CABLE & WIRELESS GROUP SAID CHIEF EXECUTIVE JAMES ROSS ALTHOUGH CONTINUING TO SEEK WAYS TO STRENGTHEN INDIVIDUAL PARTS OF THE BUSINESS HE SAID WE DON'T NEED AN ALLIANCE TO COUNTER BT'S MOVE INSTEAD HE INDICATED HE IS FOCUSING ON MAKING A SUCCESS OF A MORE LIMITED TRANSATLANTIC PACT SIGNED IN JANUARY WITH CANADA'S BCE INC BCE BOUGHT A 20 STAKE IN CABLE & WIRELESS'S MERCURY COMMUNICATIONS LTD UNIT THE BUSINESSASUSUAL MESSAGE APPEARED AIMED AT CALMING SPECULATION ABOUT THE COMPANY'S FUTURE FOLLOWING THE BTMCI PACT UNDER THE AGREEMENT BT IS TO BUY A 20 STAKE IN MCI THE SECONDLARGEST US LONGDISTANCE CARRIER AND FORM A JOINT VENTURE SELLING COMMUNICATIONS SERVICES TO MULTINATIONAL CORPORATIONS IN RESPONSE STOCK TRADERS HAVE BEEN SPECULATING THAT AMERICAN TELEPHONE & TELEGRAPH CO MIGHT COUNTER MCI BY ALLYING WITH OR TRYING TO BUY CABLE & WIRELESS LORD YOUNG CABLE & WIRELESS'S CHAIRMAN SAID THE BRITISH FIRM HAS HAD TALKS WITH AT&T ABOUT COOPERATION AS WITH NEARLY EVERY OTHER BIG INDUSTRY PLAYER INCLUDING MCI BEFORE ITS AGREEMENT WITH BT LORD YOUNG CALLED A TAKEOVER UNLIKELY PARTLY BECAUSE THE BRITISH GOVERNMENT CAN VETO ANY SHAREHOLDER ACQUIRING MORE THAN 15 OF CABLE & WIRELESS'S SHARES THE COMPANY WAS STATEOWNED UNTIL THE EARLY 1980S I DON'T BELIEVE THAT WE ARE GOING TO SEE BIDS IN OUR INDUSTRY LORD YOUNG SAID WHAT WE'LL SEE IS ALLIANCES IN THE LATEST FISCAL YEAR CABLE & WIRELESS REPORTED THAT PRETAX PROFIT BEFORE EXCEPTIONAL ITEMS ROSE 15 TO 824 MILLION 123 BILLION FROM 714 MILLION A YEAR EARLIER AFTER EXCEPTIONAL ITEMS INCLUDING PROFITS FROM THE MERCURY SHARESALE TO BCE THE COMPANY'S PRETAX PROFIT JUMPED 43 TO 918 MILLION FROM 644 MILLION A YEAR AGO NET INCOME SURGED 59 TO 514 MILLION OR 475 PENCE A SHARE FROM 324 MILLION OR 301 PENCE A SHARE REVENUE ROSE 22 TO 383 BILLION FROM 312 BILLION CABLE & WIRELESS SAID IT PLANS TO RAISE ITS DIVIDEND BY 12 TO 101 PENCE A SHARE IN CONTRAST TO THE RECENT BRITISH CORPORATE TREND OF RECESSIONRELATED DIVIDEND CUTS IT ALSO ANNOUNCED A STOCK SPLIT EFFECTIVE OCT 28 GIVING STOCKHOLDERS AN ADDITIONAL SHARE FOR EACH SHARE THEY OWN THE FLURRY OF NEWS PUSHED UP THE COMPANY'S STOCK PRICE BY 23 PENCE A SHARE TO 777 PENCE IN LATE LONDON TRADING 9306230151 930623 BUSINESS BRIEF ISUZU MOTORS LTD AUTO MAKER SAYS NET LOSS NARROWED SHARPLY IN HALF ISUZU MOTORS LTD A JAPANESE MAKER OF TRUCKS AND BUSES REPORTED THAT ITS UNCONSOLIDATED PRETAX LOSS NARROWED TO 843 BILLION YEN 762 MILLION IN THE FISCAL FIRST HALF ENDED APRIL 30 FROM 2348 BILLION YEN A YEAR EARLIER THE COMPANY'S NET LOSS SHRANK TO 690 BILLION YEN FROM 2438 BILLION YEN ISUZU SAID ITS BUSINESS ENVIRONMENT WAS SEVERE WITH SALES IN JAPAN FALLING SHARPLY AS THE ECONOMY FESTERED AND SHIPMENTS TO MAIN OVERSEAS MARKETS IN NORTH AMERICA AND EUROPE ALSO SET BACK OVERALL SALES SLIPPED 28 TO 57562 BILLION YEN THE COMPANY SAID ITS NARROWER LOSSES WERE DUE TO A RESTRUCTURING THAT FOCUSED ENERGIES ON TRUCK AND BUS ACTIVITIES IN DECEMBER ISUZU ANNOUNCED IT WOULD STOP DEVELOPING NEW PASSENGER CARS AND SINCE HAS SIGNED A MUTUAL SUPPLY PACT WITH FELLOW AUTO MAKER HONDA MOTOR CO ISUZU LEFT ITS EARNINGS FORECAST FOR THE FULL FISCAL YEAR THROUGH OCT 31 MOSTLY UNCHANGED ISUZU SAID IT IS AIMING TO RETURN TO PROFITABILITY IN THE NEAR TERM BY STRENGTHENING ITS RECREATION VEHICLE AND COMPONENTS BUSINESSES THE COMPANY STRESSED COOPERATION WITH GENERAL MOTORS CORP OF THE US WHICH HOLDS A MORE THAN ONETHIRD STAKE IN ISUZU 9306230150 930623 BUSINESS BRIEF FERRUZZI FINANZIARIA SPA MINISTER SAYS GROUP OWES FOREIGN BANKS 425 BILLION FERRUZZI FINANZIARIA SPA'S GROUP INDEBTEDNESS WITH FOREIGN BANKS IS 65 TRILLION LIRE 425 BILLION TREASURY MINISTER PIERO BARUCCI SAID MR BARUCCI TOLD A PARLIAMENTARY FINANCE COMMITTEE THAT THIS ASPECT COMPLICATES THE SITUATION AT THE GIANT ITALIAN AGROINDUSTRIAL CONGLOMERATE AND MUST INDUCE GREAT CAUTION ITALIAN CREDITOR BANKS OF THE FERRUZZI GROUP LED BY MERCHANT BANK MEDIOBANCA ARE PUTTING TOGETHER A RESTRUCTURING PLAN AFTER THE COMPANY ANNOUNCED GROSS CONSOLIDATED DEBT OF MORE THAN 25 TRILLION LIRE AT THE END OF 1992 FERRUZZI SAID IN EARLY JUNE THAT 10223 TRILLION LIRE WAS OWED TO BANKS ALONG WITH SOME SHORTTERM LOANS MR BARUCCI SAID FERRUZZI ITALY'S SECONDLARGEST PRIVATESECTOR INDUSTRIAL GROUP AND ITS ACTIVITIES TOUCH ON STRATEGIC ASPECTS FOR THE COUNTRY HE ADDED IT'S URGENT THEREFORE TO INTERVENE NOT JUST IN THE INTERESTS OF THE GROUP BUT OVERALL TO AVOID RISKS TO THE CREDIBILITY OF ITALY 9306230149 930623 BUSINESS BRIEF BANKAMERICA CORP SALE OF MALAYSIAN OPERATIONS TO BUSINESSMAN IS PROPOSED BANKAMERICA CORP HAS PROPOSED SELLING THE MALAYSIAN BRANCH OF ITS SECURITY PACIFIC ASIAN BANK UNIT TO A WEALTHY MALAYSIAN BUSINESSMAN THE PROPOSED TRANSACTION WHICH HASN'T BEEN ANNOUNCED VALUES THE MALAYSIAN BRANCH AT ABOUT 100 MILLION MALAYSIAN DOLLARS US387 MILLION ACCORDING TO EXECUTIVES FAMILIAR WITH THE PROPOSAL THE US BANK LAST WEEK ASKED MALAYSIA'S CENTRAL BANK TO APPROVE THE SALE OF ITS 100 HOLDING IN THE BRANCH TO THE MALAYSIAN GROUP AMMB HOLDINGS BHD THE PUBLICLY LISTED FINANCIAL SERVICES ARM OF 52YEAROLD TAN SRI AZMAN HASHIM'S BUSINESS EMPIRE IS LIKELY TO EMERGE AS THE CONTROLLING SHAREHOLDER IN THE BRANCH SHOULD THE SALE GO THROUGH ACCORDING TO BANKING INDUSTRY EXECUTIVES FOR BANKAMERICA THE DECISION TO SELL THE MALAYSIAN OPERATIONS TO A LOCAL BUYER CONFIRMS THAT THE US BANK HAS ABANDONED PLANS TO FIND A BUYER FOR SECURITY PACIFIC ASIAN'S ENTIRE FOURCOUNTRY NETWORK NEITHER BANKAMERICA NOR SECURITY PACIFIC ASIAN EXECUTIVES WOULD COMMENT TAN SRI AZMAN WAS TRAVELING AND UNAVAILABLE FOR COMMENT AND AN ASSOCIATE IN KUALA LUMPUR DECLINED TO COMMENT 9306230148 930623 BUSINESS BRIEF SIZZLER INTERNATIONAL INC RESTAURATEUR SEES CHARGE OF 49 MILLION IN QUARTER SIZZLER INTERNATIONAL INC LOS ANGELES SAID IT WOULD TAKE A ONETIME CHARGE OF 49 MILLION OR 10 CENTS A SHARE FOR THE FOURTH QUARTER ENDED APRIL 30 PARTLY TO ACCOUNT FOR COSTS STEMMING FROM INCIDENTS AT TWO OREGON RESTAURANTS LAST SPRING INVOLVING DINERS GETTING SICK FROM THE FOOD IN LAST YEAR'S FOURTH QUARTER THE RESTAURANT OPERATOR REPORTED NET INCOME OF 49 MILLION OR 17 CENTS A SHARE ON REVENUE OF 1335 MILLION THE COMPANY SAID ABOUT 19 MILLION OF THE CHARGE WAS USED TO DEAL WITH THE OUTBREAK IN OREGON DURING WHICH TWO RESTAURANTS WERE CLOSED TEMPORARILY WHEN SEVEN PATRONS CONTRACTED THE E COLI BACTERIA AFTER EATING THERE THE INCIDENT CAME JUST WEEKS AFTER FOODMAKER INC'S JACK IN THE BOX CHAIN RECEIVED WIDESPREAD PUBLICITY WHEN AT LEAST TWO CHILDREN DIED AND 400 PEOPLE BECAME ILL IN AN E COLI OUTBREAK SIZZLER SAID SALES ARE BACK TO NORMAL IN OREGON THE REMAINDER OF THE CHARGE WAS DEVOTED TO A MARKETING CAMPAIGN FOCUSED ON ATTRACTING FAMILIES TO THE COMPANY'S RESTAURANTS 9306230147 930623 RUSSIAN OFFICERS ARE GIVEN PASSES TO ENTER PENTAGON WASHINGTON THE RUSSIANS ARE COMING AND THE PENTAGON IS WELCOMING THEM THE DEFENSE DEPARTMENT LAST WEEK ISSUED PASSES ALLOWING ACCESS TO THE PENTAGON TO A RUSSIAN ARMY GENERAL AND COLONEL WHO ARE DEFENSE ATTACHES AT THE RUSSIAN EMBASSY HERE A PENTAGON SPOKESMAN SAID THE PASSES ALLOW THE OFFICERS TO ENTER THE PENTAGON UNESCORTED BUT THE RUSSIANS LIKE OTHER ATTACHES MUST GIVE ADVANCE NOTICE AND WEAR UNIFORMS AND PASSES WHILE IN THE BUILDING GIVING THE RUSSIANS MORE ACCESS TO THE DEFENSE DEPARTMENT IS PART OF A CONTINUING PROGRAM TO BROADEN CONTACTS BETWEEN THE US AND RUSSIAN MILITARY ESTABLISHMENTS THE SPOKESMAN SAID THE RUSSIANS HAVE BEEN TOLD THE US EXPECTS TO BE GIVEN RECIPROCAL ACCESS TO THE RUSSIAN MINISTRY OF DEFENSE HE ADDED 9306230146 930623 ECONOMY BANKRUPTCY FILINGS FELL 123 DURING 1ST QUARTER WASHINGTON BANKRUPTCY FILINGS FELL 123 IN THE FIRST QUARTER OF 1993 COMPARED WITH THE YEAREARLIER PERIOD AND THE DECLINE IS EXPECTED TO CONTINUE THE STATISTICIAN FOR THE ADMINISTRATIVE OFFICE OF THE US COURTS SAID ACCORDING TO FIGURES SCHEDULED FOR RELEASE TODAY BANKRUPTCY FILINGS BY BUSINESSES AND INDIVIDUALS TOTALED 223008 IN THE MARCH QUARTER DOWN 24 FROM THE 228562 FILINGS IN THE FINAL QUARTER OF 1992 AND 123 BELOW THE 254402 BANKRUPTCIES FILED THE YEAR EARLIER EDWARD FLYNN THE STATISTICIAN SAID FILINGS HAD INCREASED SO MUCH THAT THEY HAD TO STABILIZE OR DROP AT SOME POINT THERE WERE 971517 BANKRUPTCY FILINGS LAST YEAR BANKRUPTCIES HAVE INCREASED EVERY YEAR SINCE 1984 WHEN 348488 CASES WERE FILED ACCORDING TO FEDERAL REPORTS MR FLYNN CITED TWO REASONS FOR THE DECLINE CONSUMER DEBT HAS DROPPED OFF AND THE COST OF SERVICING DEBT IS LOWER FOR CONSUMERS AND BUSINESSES BECAUSE OF LOWER INTEREST RATES HE SAID IN ADDITION HE SAID THE ECONOMY ISN'T DOING ANY WORSE 9306230145 930623 TECHNOLOGY & HEALTH IN PLANT GENETICS IT'S A THREEWAY FIGHT DNA PLANT WIDENS PATENT ON TRANSWITCH' AS ENZO CALGENE PUSH ANTISENSE' BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A THREEWAY BATTLE IS DEVELOPING OVER THE SELLING OF GENE TECHNOLOGIES TO MAKE SUCH EXOTIC NEW FOODS AS TOMATOES THAT DON'T SPOIL JUST AS ENZO BIOCHEM INC BEGAN A BROAD EFFORT TO SELL ITS ANTISENSE TECHNIQUE OF GENETIC ENGINEERING TO OTHER BIOTECHNOLOGY DRUG AND FOOD COMPANIES DNA PLANT TECHNOLOGIES CORP ANNOUNCED IT'S READY TO SELL A COMPETING TECHNIQUE FOR GENETICALLY ENGINEERING FOOD PLANTS DNA PLANT BASED IN CINNAMINSON NJ SAID THE US PATENT OFFICE IS ALLOWING THE COMPANY TO BROADEN ITS PATENT ON ITS TRANSWITCH GENESUPPRESSION TECHNOLOGY DEVELOPED INITIALLY IN THE PETUNIA TO COVER USE IN ALL PLANTS INCLUDING THE TOMATOES PEPPERS AND SUGAR SNAP PEAS IT'S DEVELOPING WITH DUPONT CO TRANSWITCH CAN BE USED FOR THE SAME PURPOSES AS ANTISENSE AT LEAST IN PLANTS SAID JOHN BEDBROOK EXECUTIVE VICE PRESIDENT AT DNA PLANT HE SAID THE TECHNOLOGY WILL BE MADE AVAILABLE TO OTHERS THROUGH LICENSING AGREEMENTS IN ITS ANNOUNCEMENT DNA PLANT BRAGGED ABOUT ITS UNDISPUTED PATENT PROTECTION AN OBVIOUS REFERENCE TO THE PATENT DISPUTE OVER THE ANTISENSE TECHNIQUE BETWEEN ENZO BIOCHEM OF FARMINGDALE NY AND THE THIRD PLAYER IN THE BATTLE CALGENE CORP OF DAVIS CALIF ENZO BIOCHEM MEANWHILE IS IN ACTIVE DISCUSSIONS WITH MANY COMPANIES ABOUT LICENSING PACTS AND POSSIBLE JOINT VENTURES TO EXPLOIT ITS ANTISENSE TECHNOLOGY SAID BARRY WEINER EXECUTIVE VICE PRESIDENT THE DISCUSSIONS INVOLVE THE USE OF ANTISENSE BEYOND AGRICULTURE COVERING THE WHOLE SPECTRUM OF GENETIC ENGINEERING INCLUDING HUMAN THERAPEUTICS AND INDUSTRIAL PROCESSING HE SAID COMPANIES ARE STARTING TO APPROACH US ABOUT LICENSING ARRANGEMENTS ESPECIALLY IN THE PLANT AND CROP DEVELOPMENT AREA MR WEINER SAID HE ADDED THAT OUR INTENTION IS TO GET THIS OUT INTO USE AS BROADLY AS POSSIBLE CALGENE WHICH IS USING ANTISENSE TECHNOLOGY TO PRODUCE ITS CONTROVERSIAL FLAVR SAVR TOMATO HAS SUED ENZO BIOCHEM SEEKING TO INVALIDATE THE LATTER'S PATENT ENZO BIOCHEM IN TURN HAS CHARGED CALGENE WITH PATENT INFRINGEMENT AND CLAIMS THAT A CALGENE ANTISENSE PATENT IS INVALID PREVENTING GENES FROM FUNCTIONING BOTH ANTISENSE AND TRANSWITCH ARE METHODS OF PREVENTING GENES FROM FUNCTIONING CALGENE FOR INSTANCE USES ANTISENSE TO SUPPRESS A GENE INVOLVED IN THE SOFTENING OF TOMATOES AS THEY RIPEN SO THE TOMATOES STAY FIRM LONGER DNA PLANT ON THE OTHER HAND USES ITS TRANSWITCH TO SUPPRESS A GENE INVOLVED IN THE RIPENING PROCESS SLOWING THAT PROCESS CAN ADD WEEKS OR MONTHS TO THE SHELF LIFE OF TOMATOES MR BEDBROOK SAID TRANSWITCH ALSO CAN BLOCK THE CONVERSION OF SUGAR TO STARCH IN SNAP PEAS MAKING THEM SWEETER BOTH TECHNIQUES INVOLVE JAMMING THE MACHINERY BY WHICH A CELL TRANSCRIBES A MESSAGE FROM ITS DNA GENETIC MATERIAL TO A CLOSELY RELATED MOLECULE RNA THE WORKHORSE THAT CARRIES OUT THE JOB DICTATED BY THE GENE THE ANTISENSE TECHNIQUE DOES THIS BY INDUCING THE CELL TO MAKE A PIECE OF REVERSE RNA OR ANTISENSE RNA THAT GLUES ITSELF TO THE ORIGINAL RNA OR SENSE RNA AND PREVENTS IT FROM CARRYING OUT ITS ASSIGNED TASK THE TRANSWITCH METHOD INVOLVES INSERTING A PIECE OF RNA THAT'S A DUPLICATE OF PART OF THE ORIGINAL RNA FOR REASONS NOT YET FULLY UNDERSTOOD THIS EXTRA PIECE SEEMS TO PREVENT THE ORIGINAL RNA FROM MOVING OUT INTO THE CELL TO DO ITS JOB OF MAKING A PROTEIN MR BEDBROOK SAID IN AN INTERVIEW THAT OCCURRED COINCIDENTALLY JUST AS DNA PLANT MADE ITS ANNOUNCEMENT ENZO BIOCHEM'S LEAD SCIENTIST AND CHIEF EXECUTIVE OFFICER ELAZAR RABBANI SAID HE UNDERSTOOD THE TRANSWITCH TECHNIQUE WORKED ONLY IN CERTAIN CELLS AND CERTAIN PLANTS ENZO'S ANTISENSE HE SAID WAS UNIVERSAL AND WORKED IN ALL CELLSBACTERIAL PLANT AND MAMMALIAN MR BEDBROOK AGREED THAT THE TRANSWITCH TECHNIQUE AT PRESENT IS LIMITED TO PLANTS IT HASN'T YET BEEN TRIED IN EVERY PLANT HE SAID BUT IT'S NEVER BEEN TRIED IN A GENETIC SYSTEM WHERE IT DIDN'T WORK 9306230144 930623 THE BUDGET FUN WITH NUMBERS BY DANIEL J MITCHELL ONE OF THE ENTERTAINMENTS OF THE WEEK HAS BEEN LISTENING TO POLITICIANS' COMPETING CALCULATIONS THE WHITE HOUSE HAS BEEN ARGUING AND SOME SENATE DEMOCRATIC LEADERS HAVE BEEN REPEATING THAT THE BUDGET PACKAGE IS A 11 DEAL A 500 BILLION DEFICIT REDUCTION PLAN EVENLY DIVIDED BETWEEN SPENDING CUTS AND TAX INCREASES THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT THE DEFICIT REDUCTION LEGISLATION IS A 251 DEAL PRECISELY 253 IN TAX INCREASES FOR EVERY DOLLAR IN CUTS FOR A TOTAL PACKAGE OF ABOUT 350 BILLION SENATE REPUBLICANS FOR THEIR PART ARGUE THAT THE REAL RATIO IS 3151 BY MY OWN MATH AND I'LL TRY TO SHOW SOME OF THIS BELOW THE TRUE RATIO IS 466 IN NEW REVENUES FOR EVERY DOLLAR IN SPENDING CUTS LET'S START WITH THE 11 RATIO THE 500 BILLION DEFICIT REDUCTION PLAN WORKS ONLY IF WE COUNT SAVINGS THAT DO NOT NOW EXIST AND PROBABLY NEVER WILL IN PARTICULAR DEMOCRATS ARE CLAIMING THEY WILL REDUCE ANNUALLY APPROPRIATED SPENDING PROGRAMS BY 114 BILLION OVER THE NEXT FIVE YEARS ALL 114 BILLION OF THESE SAVINGS ARE ONLY PROMISES AS OPPOSED TO REAL LEGISLATION IT'S WORTH REMEMBERING THAT RONALD REAGAN IS STILL WAITING FOR THE 3 OF SPENDING CUTS FOR EVERY 1 OF TAX INCREASES HE WAS PROMISED BACK IN 1982 NOR CAN DEMOCRATS TAKE CREDIT FOR ANOTHER COMPONENT OF THEIR SAVINGS PACKAGE 55 BILLION IN CLAIMED INTEREST SAVINGS UNTIL THE MONEY IS IN THE BANK THESE SAVINGS ARE PREDICATED ON THE ASSUMPTION THAT THE DEFICIT WILL NARROW BUT BIG TAXRATE INCREASES AND THIS ONE IS THE LARGEST OF ALL TIME TEND TO DIMINISH REVENUES THE 1990 BUDGET DEAL FOR INSTANCE ALSO WAS SUPPOSED TO REDUCE BUDGET DEFICITS BY NEARLY 500 BILLION OVER A FIVEYEAR PERIOD THE TAX INCREASE HOWEVER SLOWED THE ECONOMY AND SHRANK THE TAX BASE THUS CAUSING REVENUES TO FALL COMPARED WITH PRETAX INCREASE ESTIMATES THE REVENUE SHORTFALL COMBINED WITH A VERITABLE ORGY OF NEW SPENDING CAUSED DEFICITS OVER THE FIVEYEAR PERIOD TO BALLOON BY MORE THAN 700 BILLION COMPARED TO PREBUDGETDEAL PROJECTIONS THAT AMOUNTS TO A CUMULATIVE ERROR OF 12 TRILLION THE RESULT HIGHER INTEREST PAYMENTS LOOK NOW AT THE SECOND SET OF NUMBERS THOSE PRODUCED BY THE DEMOCRATICALLY CONTROLLED CBO AND THE JOINT COMMITTEE ON TAXATION THESE BODIES LOOK MORE NARROWLY AND PERHAPS MORE HONESTLY AT THE CLINTON BUDGET COUNTING ONLY SAVINGS ACTUALLY IN THE BUDGET RECONCILIATION BILL AS OPPOSED TO INCLUDING PROMISES THEY SEE A PACKAGE THEY ESTIMATE WILL REDUCE GOVERNMENT BORROWING BY 3474 BILLION OVER THE NEXT FIVE YEARS THEY ESTIMATE THAT 2489 BILLION OF THE 3474 BILLION RECONCILIATION SAVINGS IS DUE TO INCREASED REVENUES ONLY 985 BILLION COMES FROM SAVINGS THUS THE RATIO OF 253 OF INCREASED REVENUE FOR EVERY 1 WOSHINGTONDEFINED SPENDING CUTS SENATE REPUBLICANS HOWEVER ARGUE THAT THE REAL RATIO IS 3151 BECAUSE THE SENATE'S BILL HAS FEWER SPENDING CUTS THAN DEMOCRATS LIKE TO ADMIT INCLUDED IN THE 985 BILLION OF SUPPOSED CUTS ARE HIDDEN TAX HIKES AND USERS FEES REPUBLICAN LEADERS HAVEN'T SPECIFIED WHAT MATH BROUGHT THEM TO THIS CONCLUSION BUT IT'S NOT HARD TO IDENTIFY WHICH SOCALLED SPENDING CUTS ARE REALLY REVENUE INCREASES IN DISGUISE THE SENATE BILL FOR INSTANCE RAISES MORE THAN 65 BILLION BY BOOSTING THE MONTHLY MEDICARE TAX LEVIED ON SENIOR CITIZENS AS DIFFICULT AS IT MAY BE TO BELIEVE SENATE DEMOCRATS COUNT THIS PROVISION AS A SPENDING CUT IN THE SENATE BILL MORE THAN 24 BILLION OF CUSTOMS TAXES ARE COUNTED AS A SPENDING CUT AS IS 25 MILLION IN LABELING AND APPLICATIONS FEES FOR THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS THE BILL WOULD FORCE STATES TO PAY THE FEDERAL GOVERNMENT 540 MILLION FOR ADMINISTERING STATE SUPPLEMENTARY PAYMENTS PROGRAMS THAT PROVISION ALONG WITH ONE MANDATING THAT THE DC GOVERNMENT PAY THE FEDS 243 MILLION FOR EMPLOYEE HEALTH BENEFITS IS COUNTED AS A SPENDING CUT THE BILL WOULD FORCE THE POSTAL SERVICE TO GIVE THE TREASURY MORE THAN 104 BILLION FOR EMPLOYEE HEALTH AND RETIREMENT COSTS THIS MAY OR MAY NOT BE LEGITIMATE BUT IT IS NOT A SPENDING CUT AS DEMOCRATS CLAIM NOR IS THE PROVISION THAT FORCES THE FEDERAL RESERVE BOARD TO GIVE THE TREASURY 213 MILLION SENATE DEMOCRATS ALSO COUNT AS SPENDING CUTS PROVISIONS LEVYING 633 MILLION OF VETERANS HOME LOAN FEES 730 MILLION OF GINNIE MAE MORTGAGEBACKED SECURITY FEES 205 MILLION OF TONNAGE FEES 12 MILLION OF ASSESSMENTS ON SUGAR FARMERS 5 MILLION IN ASSESSMENTS ON PEANUT FARMERS AND 29 MILLION OF TAXES ON TOBACCO THE RECONCILIATION BILL WOULD FORCE STATES TO PAY THE TREASURY 165 MILLION TO SHARE THE COST OF EDUCATION LOANS THAT ARE IN DEFAULT AGAIN THESE ARE NOT SPENDING CUTS ALL TOLD REPUBLICANS CALCULATE THAT THE BILL CONTAINS 148 BILLION MORE IN REVENUE THAN DEMOCRATS ADMIT IRONICALLY PERHAPS BECAUSE IN THEIR TIME REPUBLICANS WERE GUILTY OF MANY OF THE SAME BUDGET GIMMICKS THEY ARE UNDERSTATING THEIR CASE A MORE THOROUGH COMBING OF THE SENATE BILL FINDS 238 BILLION IN REVENUE INCREASES MASQUERADING AS CUTS REPUBLICANS CERTAINLY ARE NOT COUNTING FOR EXAMPLE THE 72 BILLION TO BE RAISED BY AUCTIONING OFF PORTIONS OF THE RADIO SPECTRUM AS MENTIONED REPUBLICANS HAVEN'T PRODUCED A SPECIFIC LIST BUT IF YOU ADD UP ALL THE ITEMS LOGIC GIVES YOU 238 BILLION UNFORTUNATELY THERE IS EVEN MORE TO THE STORY SENATE DEMOCRATS ALSO CHOSE TO COUNT AS SPENDING CUTS PROVISIONS THAT IN REALITY WILL EITHER INCREASE SPENDING OR SIMPLY SHIFT OUTLAYS INTO FUTURE YEARS AND REPUBLICANS THEIR MATH REVEALS ARE LETTING THEM GET AWAY WITH THESE PHONY SAVINGS FOR INSTANCE THE BILL CLAIMS NEARLY 43 BILLION FROM A PROVISION NATIONALIZING PORTIONS OF THE GUARANTEED STUDENT LOAN PROGRAM THE SAVINGS WILL OCCUR ONLY IF IT TURNS OUT THAT THE GOVERNMENT IS MORE EFFICIENT THAN THE PRIVATE SECTOR AS A QUICK COMPARISON OF THE POSTAL SERVICE AND FEDERAL EXPRESS WILL ILLUSTRATE THIS IS AN ABSURD PROPOSITION MORE LIKELY RESULT HIGHER SPENDING THE LEGISLATION ALSO CLAIMS MORE THAN 86 BILLION OF SAVINGS BY ENDING THE OPTION WHEREBY CIVIL SERVICE EMPLOYEES COULD TAKE LUMPSUM PAYMENTS AT RETIREMENT IN EXCHANGE FOR LOWER PAYMENTS DOWN THE ROAD THIS PROVISION WILL SAVE MONEY IN THE SHORTTERM BUT ONLY BY INCREASING FEDERAL GOVERNMENT LIABILITIES IN THE FUTURE OTHER GIMMICKS SHIFTING FARM SPENDING AND MILITARY RETIREMENT COSTS INTO FUTURE YEARS SUBTRACTING THESE PROVISIONS FROM THE ALLEGED SPENDING CUTS IN THE SENATE BILL UPS THE RATIO OF REVENUESTOSPENDING TO 466 TO 1 PERHAPS THE BEST THING THAT CAN BE SAID ABOUT THE SENATE PACKAGE IS THAT THE 151 RATIO OF REVENUESTOSPENDING CUTS IN THE HOUSE RECONCILIATION BILL IS EVEN WORSE EITHER WAY IT'S A FAR CRY FROM THE PROMISES OF A NET TAX CUT THAT BILL CLINTON MADE AS A CANDIDATE OR THE 12 REVENUESTOSPENDING FIGURE HE PROMISED IN JANUARY MR MITCHELL IS A FELLOW AT THE HERITAGE FOUNDATION 9306230143 930623 INTERNATIONAL STUDY OF EAST EUROPE'S NUCLEAR PLANTS FINDS FLAWS EVEN WITH NEWER DESIGN BY AUDREY CHOI STAFF REPORTER OF THE WALL STREET JOURNAL EVEN AS THE INTERNATIONAL COMMUNITY PONDERS HOW TO DEAL WITH EASTERN EUROPE'S MOST DANGEROUS NUCLEAR REACTORS THE REGION'S NEWER AND SUPPOSEDLY SAFER GENERATION OF REACTORS IS SHOWING DISTURBING AND COSTLY FLAWS ACCORDING TO A NEW REPORT OVERSHADOWED UNTIL NOW BY THE PROBLEMS POSED BY THE DANGEROUS CHERNOBYLTYPE REACTORS THE LATERGENERATION VVER1000 REACTORS ARE EXHIBITING GENERIC FLAWS IN THEIR STEAM GENERATORS THAT CAN LEAD TO LEAKAGE OF RADIOACTIVE MATERIAL NOT TO MENTION A SIZABLE ECONOMIC LOSS RESULTING FROM LOST POWER AND HIGH EXPENSES FOR REPAIRS SAYS A STUDY BY YU KORYAKIN CHAIRMAN OF THE FORMER USSR NUCLEAR SOCIETY'S ECONOMICS AND ECOLOGY SECTION IN MOSCOW ALREADY THERE HAVE BEEN TEMPORARY FORCED SHUTDOWNS AT 35 OF THE 64 STANDARDDESIGN STEAM GENERATORS IN THE VVER1000 REACTORS IN THE FORMER SOVIET UNION MR KORYAKIN'S STUDY SAID PREMATURE AGING AT THE RELATIVELY NEW UNITS DEMONSTRATES A FUNDAMENTAL UNRELIABILITY IN THE REACTORS THAT ARE THE ONLY ALTERNATIVE TO CHERNOBYLTYPE POWER PLANTS OTHER NUCLEAR ENGINEERING EXPERTS HAVE VOICED CONCERN THAT THE VVER1000 REACTOR'S PRESSURE VESSEL IS TOO SMALL IN RELATION TO ITS POWER OUTPUT THIS CAN INCREASE NEUTRON BOMBARDMENT OF THE REACTOR WALL MAKING IT BRITTLE AND MORE PRONE TO CRACKING MOREOVER THE PLANT LAYOUT MAKES IT DIFFICULT TO INSPECT AND REPLACE KEY PARTS AND INCREASES FIRE RISK NUCLEAR EXPERTS SAID MEANWHILE ACCORDING TO A STUDY PREPARED FOR THE JULY SUMMIT IN TOKYO OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS THE LOWESTCOST LOWESTRISK OPTION FOR THE FORMER SOVIET BLOC'S MOST DANGEROUS REACTORS THE RBMKS AND VVER 440/230S IS TO SHUT THEM DOWN AND TURN TO OTHER ENERGY SOURCES THE CONFIDENTIAL STUDY WRITTEN BY THE WORLD BANK AND THE INTERNATIONAL ENERGY AGENCY AS PART OF THE G'S REVIEW OF NUCLEAR POWER AND SAFETY ISSUES IN EASTERN EUROPE AND THE FORMER SOVIET UNION ESTIMATES THAT SHUTTING DOWN THE REGION'S MOST DANGEROUS REACTORS WOULD REQUIRE INVESTMENT OF ABOUT 18 BILLION OVER THE NEXT SEVEN YEARS SOME 6 BILLION LESS THAN THE INVESTMENT NEEDED TO UPGRADE AND MAINTAIN ALL HIGHERRISK PLANTS CURRENTLY IN OPERATION SIGNIFICANTLY THE STUDY ALSO SAYS THAT THE SHUTDOWN OF CHERNOBYLTYPE REACTORS WOULDN'T JEOPARDIZE ELECTRICITY SUPPLY TO THE REGION THE STUDY CITES DECLINING ELECTRICITY USE IN THE REGION AS WELL AS THE ABILITY TO MEET ELECTRICITY NEEDS WITH OTHER ENERGY SOURCES PARTICULARLY NATURAL GAS THE STUDY MADE AVAILABLE BY THE ENVIRONMENTAL ORGANIZATION GREENPEACE EXAMINED THE SITUATION IN ARMENIA BULGARIA LITHUANIA RUSSIA SLOVAKIA AND UKRAINE PREPARED BY THE WORLD BANK AND IEA WITH OFFICIALS FROM EACH OF THOSE COUNTRIES THE REPORT ALSO HIGHLIGHTS THAT FOR REASONS INCLUDING BALANCEOFPAYMENT CONCERNS AND DIFFERENT VIEWS ABOUT NUCLEAR RISKS MANY DECISION MAKERS IN THE AFFECTED COUNTRIES STILL FAVOR THE NUCLEAR OPTION WHILE SHUTTING DOWN THE DANGEROUS FACILITIES CERTAINLY ADDRESSES THE PROBLEM OF NUCLEAR SAFETY IT RESULTS IN HIGHER FOSSIL FUEL COSTS AND USING NATURAL GAS WOULD LEAVE RUSSIA WITH LESS GAS FOR EXPORT A VITAL SOURCE OF INCOME ALTOGETHER THE REPORT ESTIMATED THAT USING GASFIRED STATIONS INSTEAD OF THE OLD NUCLEAR REACTORS WOULD INCUR FOSSIL FUEL COSTS OF ABOUT 3 BILLION MORE EACH YEAR 9306230142 930623 WHO'S NEWS ZURICH INSURANCE CO ZURICH INSURANCE CO ZURICH SIX NEW SENIOR VICE PRESIDENTS WERE NAMED AT THE NEW YORKBASED ZURICH REINSURANCE CENTRE INC UNIT THEY ARE WITH THEIR RESPECTIVE DUTIES MELINDA HAMILTON 38 YEARS OLD UNDERWRITING ISAAC MASHITZ 40 CHIEF ACTUARY MARK D MOSCA 39 CHIEF UNDERWRITING OFFICER P BRITT NEWHOUSE 39 BUSINESS DEVELOPMENT PETER R PORRINO 36 CHIEF FINANCIAL OFFICER AND JOHN D SHUCK 42 CHIEF ADMINISTRATIVE OFFICER MS HAMILTON WAS FORMERLY WITH GENERAL REINSURANCE CORP STAMFORD CONN MR MASHITZ WAS WITH NORTH AMERICAN REINSURANCE CO IN NEW YORK MR MOSCA WAS WITH NAC REINSURANCE CORP GREENWICH CONN MR NEWHOUSE WAS WITH GUY CARPENTER & CO THE REINSURANCE UNIT OF MARSH & MCLENNAN COS NEW YORK MR PORRINO WAS WITH ACCOUNTING FIRM ERNST & YOUNG AND MR SHUCK WAS WITH NORTH AMERICAN REINSURANCE CORP 9306230141 930623 WHO'S NEWS FLEMING COS FLEMING COS OKLAHOMA CITY CAROL BOYD HALLETT 56 YEARS OLD AND ROBERT E STAUTH 48 WERE NAMED TO THE BOARD OF THIS WHOLESALE FOOD DISTRIBUTOR INCREASING THE BOARD'S SIZE TO 12 MRS HALLETT IS SENIOR GOVERNMENT RELATIONS ADVISER WITH THE LAW FIRM OF COLLIER SHANNON RILL & SCOTT IN WASHINGTON MR STAUTH IS PRESIDENT AND CHIEF OPERATING OFFICER OF FLEMING 9306230140 930623 MARKETING & MEDIA CREDITCARD FIRMS MOVE TO TARGET BUSINESS PURCHASES BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL THE NATION'S THREE LARGEST ISSUERS OF CHARGE AND CREDIT CARDS ARE DEVELOPING NEW CARDS THAT BUSINESSES CAN USE TO PURCHASE OFFICE SUPPLIES AND GEAR THE LATEST BATTLEFIELD AMONG THE CARD GIANTS VISA USA AND MASTERCARD INTERNATIONAL YESTERDAY UNVEILED PLANS FOR A BUSINESS PURCHASING CARD AMERICAN EXPRESS CO PLANS SUCH A CARD BY YEAR END THE BUSINESS VOLUME AND WE BELIEVE THE PROFIT POTENTIAL ARE ATTRACTIVE SAID HARVEY GOLUB CHIEF EXECUTIVE OFFICER OF AMERICAN EXPRESS IN A SPEECH LAST WEEK THE MAJOR ISSUERS ARE TARGETING PROCUREMENT CARDS AS THEIR NEXT BIG MARKET BECAUSE US BUSINESSES SPEND AN ESTIMATED 250 BILLION TO 300 BILLION ANNUALLY ON PURCHASES THAT TYPICALLY COST LESS THAN 5000 SUCH AS OFFICE SUPPLIES FURNITURE AND PRINTING SERVICES THE PUSH INTO THE CORPORATE MARKET COMES AS THE CONSUMER CARD MARKET IS NEARLY SATURATED THE PERSONAL CARD MARKET IS TAPPED OUT SAID DAVID ROBERTSON PRESIDENT OF THE NILSON REPORT A NEWSLETTER TRACKING THE CARD MARKET THE FUTURE GROWTH IN CARD PAYMENT SYSTEMS WILL COME SUBSTANTIALLY FROM CORPORATE CARDS CARD ISSUERS BELIEVE THEY CAN OFFER DETAILED TRACKING OF PURCHASES AND SAVE COMPANIES ADMINISTRATIVE COSTS WITH THE USE OF ONE CARD FOR ALL OFFICERELATED PURCHASES SMALLTICKET OUTLAYS CAN COST COMPANIES BETWEEN 40 AND 80 TO PROCESS VISA SAID IT EXPECTS TO INTRODUCE ITS PROCUREMENT CARD AS WELL AS TWO OTHER CARDS FOR THE BUSINESS MARKET THIS FALL THE TWO OTHER CARDS ARE TRAVEL AND ENTERTAINMENT CARDS WITH DIFFERENT FEATURES FOR LARGER COMPANIES THAN FOR SMALLER ONES THEY WILL REPLACE THE COMPANY'S PREVIOUS BUSINESS CARD THAT HAD SERVED ALL COMMERCIAL CLIENTS MASTERCARD HAS AN EXISTING PROCUREMENT CARD WITH A THIRD PARTY THAT IT IS DISCONTINUING IN FAVOR OF ITS OWN CARD SAID JOHN DOUGLAS SENIOR VICE PRESIDENT AT AMERICAN EXPRESS MR GOLUB SAID ITS PLANNED PURCHASING CARD IS ONE OF THE COMPANY'S TOP PRIORITIES THE EXISTING CORPORATE CARD MARKET FOR TRAVEL AND ENTERTAINMENT TOTALED ABOUT 110 BILLION LAST YEAR ACCORDING TO THE NILSON REPORT AMERICAN EXPRESS HAS A DOMINANT 64 MARKET SHARE OF THE BUSINESS CARD MARKET THE NILSON REPORT ESTIMATES COMPARED WITH 14 FOR VISA AND 11 FOR MASTERCARD THE PROCUREMENT MARKET APPEARS TO BE UP FOR GRABS BUT CRACKING AMERICAN EXPRESS' LEADERSHIP IN THE BUSINESSCARD MARKET WON'T BE EASY ANALYSTS SAID 9306230139 930623 WHO'S NEWS CST ENTERTAINMENT IMAGING INC CST ENTERTAINMENT IMAGING INC CULVER CITY CALIF ABBEY J BUTLER WAS ELECTED A DIRECTOR EXPANDING THE BOARD TO SEVEN MEMBERS MR BUTLER 52 YEARS OLD IS COCHAIRMAN AND COCHIEF EXECUTIVE OFFICER OF NATIONAL INTERGROUP INC CST IS ENGAGED IN THE BUSINESS OF ELECTRONICALLY CONVERTING BLACKANDWHITE FILM TO COLOR VIDEOTAPE 9306230138 930623 BUT THEY SMILE WHEN THEIR STATE LURES MOBS OF SKIERS AND TOURISTS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL THE SPOTTED OWL THE SNAIL DARTER AND THE STATE OF VERMONT HAVE SOMETHING IN COMMON THEY ARE ENDANGERED SPECIES THE NATIONAL TRUST FOR HISTORIC PRESERVATION WHICH ANNUALLY LISTS TOWNS NEIGHBORHOODS AND OTHER LOCATIONS FACING LOSS OF THEIR HISTORICAL DISTINCTION THIS YEAR PLACED AN ENTIRE STATE ON THE LIST FOR THE FIRST TIME THE NATIONAL TRUST DEFINES SPRAWLMART AS UNPLANNED UNCONTROLLED LARGESCALE DEVELOPMENT ON THE PERIPHERY OF TOWNS THAT SAPS THE VITALITY FROM TRADITIONAL MAIN STREETS INCREASES AUTOMOBILE DEPENDENCY AND DESTROYS OPEN SPACE OTHER ENDANGERED PLACES THIS YEAR THE TRUST SAYS INCLUDE DOWNTOWN NEW ORLEANS OHIO'S PREHISTORIC SERPENT MOUND AND THE SCHOONER CA THAYER IN SAN FRANCISCO WALMART STORES INC WHICH HAS PROPOSED TO OPEN TWO STORES IN VERMONT SYMBOLIZES THE STATE'S SPRAWLMART PROBLEM MR MOE ASSERTS THE RETAILER DIDN'T RESPOND TO INQUIRIES ABOUT THE TRUST'S DECLARATION SOME VERMONTERS THINK THE STATE ALREADY HAS ENOUGH BIG RETAILERS THERE ARE A LOT OF PEOPLE WHO FEEL THAT THE STATE IS ON THE EDGE REALLY UNDER SIEGE FROM LOTS OF DEVELOPMENT PROPOSALS SAYS PAUL BRUHN EXECUTIVE DIRECTOR OF THE PRESERVATION TRUST OF VERMONT THE EVIDENCE SEEMS PRETTY CLEAR THAT BIG RETAIL DEVELOPMENTS CONTRIBUTE TO SPRAWL AND HAVE A NEGATIVE EFFECT ON EXISTING DOWNTOWNS STATE OFFICIALS SAY REPORTS THAT VERMONT'S HERITAGE IS DYING ARE EXAGGERATED BUT THEY AGREE THAT TAKING ACTION AGAINST EROSION OF THE STATE'S CHARACTER IS IMPORTANT I THINK THE REASON THAT WE WERE PLACED ON THIS LIST IS THAT PEOPLE ARE AFRAID THAT OUR DOWNTOWNS ARE REALLY AT RISK FROM THIS SPRAWL SAYS VERMONT GOV HOWARD DEAN AND I'M VERY MUCH IN AGREEMENT WITH THAT EMERSON LYNN EDITOR OF THE ST ALBANS MESSENGER CONCEDES THAT BLOCKING SUCH LARGE RETAILERS AS WALMART MAY BE DIFFICULT BUT HE SAYS IT'S NECESSARY TO PRESERVE THE STATE'S CHARACTER THEY JUST DON'T FIT HE CONTENDS A WALMART IN VERMONT IS LIKE ROSS PEROT WEARING A 10GALLON HAT 9306230137 930623 WHO'S NEWS UNITED TECHNOLOGIES CORP UNITED TECHNOLOGIES CORP HARTFORD CONN THE COMPANY AS EXPECTED NAMED JAMES T JOHNSON EXECUTIVE VICE PRESIDENT OF ITS PRATT & WHITNEY UNIT AND PRESIDENT OF PRATT'S LARGE COMMERCIAL ENGINES BUSINESS MR JOHNSON 51 YEARS OLD SUCCEEDS SELWYN D BERSON 64 EXECUTIVE VICE PRESIDENT OF PRATT & WHITNEY AND PRESIDENT OF PRATT'S COMMERCIAL ENGINE BUSINESS WHO WILL RETIRE IN SEPTEMBER MR JOHNSON HAD BEEN VICE PRESIDENT AND GENERAL MANAGER OF THE EVERETT DIVISION AT BOEING CO UNITED TECHNOLOGIES MAKES AIRCRAFT ENGINES HELICOPTERS ELEVATORS AND ESCALATORS HEATING AND AIRCONDITIONING SYSTEMS AEROSPACE SYSTEMS DEFENSE SYSTEMS AND AUTOMOTIVE PARTS AND SYSTEMS 9306230136 930623 WHO'S NEWS EQUITABLE COS EQUITABLE COS NEW YORK G MOFFETT COCHRAN 42 YEARS OLD WAS NAMED PRESIDENT OF WOOD STRUTHERS & WINTHROP THE INVESTMENT MANAGEMENT TAX AND FINANCIAL PLANNING BUSINESS OF DONALDSON LUFKIN & JENRETTE INC A UNIT OF THIS INSURANCE AND FINANCIAL SERVICES COMPANY MR COCHRAN WHO HAD BEEN SENIOR VICE PRESIDENT AND DIRECTOR FOR CLIENT BANKING SERVICES AT BESSEMER TRUST COS SUCCEEDS CARL B MENGES 62 WHO WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WOOD STRUTHERS AND AS VICE CHAIRMAN OF DONALDSON LUFKIN & JENRETTE 9306230135 930623 OTC FOCUS NASDAQ INDEX DROPS 197 PRESSURED BY TECHNOLOGY AND RESTAURANT STOCKS BY SARA CALIAN AND CAITLIN MOLLISON STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SELLING IN TECHNOLOGY RESTAURANT AND CASINO STOCKS DRAGGED THE OVERTHECOUNTER MARKET LOWER THE NASDAQ COMPOSITE INDEX DROPPED 197 OR 029 TO 68677 DECLINING ISSUES OUTNUMBERED ADVANCERS 1475 TO 1194 ON TOTAL VOLUME OF 2582 MILLION SHARES UP FROM MONDAY'S 2085 MILLION SHARES THE DAY'S MOST ACTIVE STOCK NOVELL TUMBLED 2 1/4 TO 23 3/4 ON 132 MILLION SHARES FIVE TIMES ITS NORMAL VOLUME INVESTORS WERE WORRIED ABOUT DEMAND FOR THE COMPANY'S CORE NETWARE 311 OPERATING SYSTEM BECAUSE ITS NEW NETWARE 40 SOFTWARE ACCOUNTED FOR A LARGERTHANEXPECTED PORTION OF NOVELL'S FISCAL SECONDQUARTER REVENUE LEHMAN BROTHERS ANALYST DAVID READERMAN SAID HE SAW GENERAL INTEREST IN NETWARE 40 BUT NOT A LOT OF LARGE CORPORATIONS RUSHING TO UPGRADE TO IT DALLASBASED CYBERTEK INCREASED 2 3/4 TO 14 3/4 THE LIFE INSURANCEAPPLICATION SOFTWARE COMPANY REPORTEDLY IS IN A DEFINITIVE PACT TO BE PURCHASED BY POLICY MANAGEMENT SYSTEMS IN A DEAL VALUED AT ABOUT 60 MILLION POLICY MANAGEMENT ROSE 1 1/8 TO 37 3/8 ON THE NEW YORK STOCK EXCHANGE MOST OF THE REST OF THE TECHNOLOGY SECTOR FELL BORLAND INTERNATIONAL DROPPED 1 1/2 TO 22 7/8 MICROSOFT FELL 5/8 TO 88 INTEL SLID 1 1/4 TO 55 1/2 AND ADOBE SYSTEMS SANK 2 5/8 TO 61 1/2 INVESTORS ARE TAKING THESE STOCKS AND SHOOTING THEM ONE AT A TIME SAID LOUIS TODD HEAD OF EQUITY TRADING AT JC BRADFORD & CO MONEY MANAGERS ARE NOW WEEDING OUT THE RESTAURANT GROUP FROM THEIR PORTFOLIOS AND CASINO STOCKS ARE ALL OVER THE PLACE RESTAURANT STOCKS ARE TRADING AT SUCH HIGH VALUATIONS THAT IF THEY DON'T SURPASS EARNINGS ESTIMATES THEY WILL BE SOLD OFF BY INVESTORS TRADERS SAID LONE STAR STEAKHOUSE & SALOON TOPPLED 2 3/4 TO 22 EVEN THOUGH THE WICHITA KAN RESTAURANT CHAIN REPORTED SECONDQUARTER EARNINGS OF NINE CENTS A SHARE ON TARGET WITH ANALYSTS' ESTIMATES THE COMPANY EARNED THREE CENTS A SHARE A YEAR EARLIER OTHER RESTAURANT STOCKS WERE ALSO KNOCKED DOWN OUTBACK STEAKHOUSE DROPPED 1 1/4 TO 31 SHOWBIZ PIZZA TIME FELL 1 1/8 TO 18 1/8 AND CHECKERS DRIVEIN RESTAURANTS EASED 1/4 TO 19 1/2 PRIMADONNA RESORTS JUMPED TO 20 1/2 FROM ITS INITIAL OFFERING PRICE OF 18 THROUGH UNDERWRITERS LED BY SALOMON BROTHERS THE COMPANY OPERATES TWO CASINOHOTELS IN NEVADA BUT SEVERAL OTHER CASINO STOCKS TOOK A BEATING CASINO MAGIC DROPPED 2 1/4 TO 24 ARGOSY GAMING EASED 1/8 TO 27 7/8 AND HOLLYWOOD CASINO TOPPLED 2 1/2 TO 20 1/2 GRAND CASINOS PLUNGED 3 5/8 TO 29 5/8 AND STATION CASINOS FELL 3/4 TO 14 1/2 EVEN THOUGH DONALDSON LUFKIN & JENRETTE ANALYST MARK MANSON INITIATED COVERAGE OF THE STOCKS WITH VERY ATTRACTIVE RATINGS THE HEALTHCARE GROUP ALSO HAD SEVERAL BIG GAINERS AND LOSERS OXFORD HEALTH PLANS JUMPED 2 3/4 TO 65 1/2 GENZYME LOST 2 5/8 TO 35 3/4 AND PACIFICARE'S CLASS B SHARES ADDED 1 TO 37 1/4 DENSTPLY INTERNATIONAL FORMERLY KNOWN AS GENDEX CORP FELL 2 1/4 TO 32 1/2 THE XRAY EQUIPMENT COMPANY SAID AFTER THE MARKET CLOSED MONDAY THAT IT WILL TAKE CHARGES TOTALING 131 MILLION FOR THE SECOND QUARTER WHICH WILL RESULT IN A LOSS MEANWHILE COMMUNICATIONS STOCKS FLEXED THEIR MUSCLES VANGUARD CELLULAR GAINED 1 TO 26 1/4 MOBILE TELECOMMUNICATIONS ROSE 1 3/8 HIGHER TO 24 AND FLEET CALL CLIMBED 7/8 TO 27 7/8 MEANTIME GENTEX ZEELAND MICH SHOT 1 1/8 HIGHER TO 21 3/4 AFTER IT RECEIVED A PURCHASE ORDER TO SUPPLY AUTOMATICDIMMING MIRRORS FOR CHRYSLER'S 1994 MODEL DODGE DAKOTA MIDSIZE PICKUP AND FULLSIZE RAM PICKUP THE COMPANY MAKES PRODUCTS THAT USE ELECTROOPTICAL TECHNOLOGY EVERGREEN BANCORP JUMPED 2 TO 15 3/4 KEYCORP WHICH DIPPED 3/8 TO 39 7/8 ON THE BIG BOARD MONDAY OFFERED TO ACQUIRE EVERGREEN 9306230134 930623 COMMODITIES ORANGE JUICE FUTURES SOAR TO SEVENMONTH HIGH ON CONCERNS THAT BRAZILIANS ARE RAISING PRICES BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL ORANGE JUICE FUTURES PRICES SURGED TO THEIR HIGHEST LEVELS IN SEVEN MONTHS ON CONCERNS THAT BRAZILIAN JUICE PROCESSORS ARE RAISING THE PRICES THEY CHARGE EUROPEAN BUYERS AT NEW YORK'S COTTON EXCHANGE WHERE ORANGE JUICE FUTURES CONTRACTS ARE TRADED THE ACTIVELY TRADED JULY CONTRACT WAS UP 550 CENTS TO 12070 A POUND THE HIGHEST PRICE FOR THE CONTRACT SINCE OCTOBER ANALYSTS SAID THE JUICE PROCESSORS IN BRAZIL MAY HAVE RAISED THEIR PRICES BY THE EQUIVALENT OF ABOUT 12 CENTS A POUND THE PROCESSORS WERE APPARENTLY CAPITALIZING ON UNUSUALLY STRONG SEASONAL DEMAND FOR ORANGE JUICE FROM EUROPEAN NATIONS IT WAS SOMEWHAT OF AN UNEXPECTED MOVE BECAUSE MOST TRADE PARTICIPANTS WERE EXPECTING THE BRAZILIAN PROCESSORS TO WAIT UNTIL CLOSER TO THE OCTOBER CROP FORECAST TO CHANGE CURRENT PRICING SAID SAUNDRA KAUL ORANGE JUICE ANALYST FOR SHEARSON LEHMAN BROTHERS THAT SET A STRONG TONE FOR THE MARKET OTHER FACTORS YESTERDAY ALSO SERVED TO PUSH PRICES HIGHER WORRIES ARE GROWING ANALYSTS SAID THAT THE LACK OF RAIN IN FLORIDA THIS YEAR HAS BEGUN TO INFLICT STRESS ON ORANGE TREES THERE EARLIER THIS SEASON A DISEASE CALLED BLOSSOM BLIGHT CUT INTO THE YEAR'S PROJECTED YIELD OF ORANGES ALSO NEWS SERVICES REPORTED THAT AN INSECT CALLED THE BROWN CITRUS APHID HAD BEEN FOUND IN CUBA THIS RAISED FEARS THAT THE INSECT MIGHT EVENTUALLY MAKE ITS WAY TO THE ORANGE GROVES OF FLORIDA BROWN CITRUS APHIDS ARE KNOWN TO SPREAD A VIRUS THAT DAMAGES CITRUS TREES THE INSECT HAS BEEN FOUND ON SEVERAL CARIBBEAN ISLANDS AND IS THOUGHT TO BE GRADUALLY MOVING CLOSER TO FLORIDA WHERE MOST US JUICE IS PRODUCED AT THIS POINT ANALYSTS REMAIN SKEPTICAL ABOUT THE PROSPECT FOR THE INSECTS INFLICTING DAMAGE ON FLORIDA'S GROVES HOWEVER INFESTATION WOULD OBVIOUSLY BE A SERIOUS MATTER SAID JUDITH GANES ORANGE JUICE ANALYST FOR MERRILL LYNCH BUT THE US AGRICULTURE DEPARTMENT WILL TRY TO DO EVERYTHING IT CAN TO PREVENT INFESTATION ANOTHER FACTOR LENDING STRENGTH TO THE MARKET YESTERDAY WAS BUYING OF FUTURES CONTRACTS BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTORS' MONEY AFTER PRICES BROKE THROUGH A KEY LEVEL AT 117 CENTS A POUND COMMODITY FUNDS WHICH BUY FUTURES CONTRACTS ON THE BASIS OF MATHEMATICAL FORMULAS RATHER THAN SUPPLYANDDEMAND FUNDAMENTALS HAD PLACED ORDERS TO BUY THE CONTRACTS IF PRICES BROKE THROUGH THE 117 LEVEL THE PRICE OF THE JULY CONTRACT HAD TESTED THE LEVEL AND FALLEN SHORT ON FRIDAY MOREOVER A REPORT RELEASED EARLY YESTERDAY BY THE COTTON EXCHANGE SHOWED A LARGE NUMBER OF SHORT SPECULATIVE POSITIONS OR WAGERS THAT ORANGE JUICE PRICES WOULD DECLINE AS PRICES ROSE TRADERS WERE FORCED TO LIQUIDATE THOSE POSITIONS TO CUT THEIR LOSSES THIS WIDESPREAD LIQUIDATION ADDED STRENGTH TO THE PRICE RALLY IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF SOYBEAN FUTURES CONTRACTS SLIPPED UNDER THE WEIGHT OF A WAVE OF TRADER PROFITTAKING AND FARMER SELLING IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR JULY DELIVERY DROPPED FIVE CENTS A BUSHEL TO SETTLE AT 61550 A BUSHEL SOYBEAN PRICES HAD CLIMBED IN THE TRAILING FOUR TRADING SESSIONS AMID SIGNS THAT RAINY WEATHER HAD DELAYED THE PLANTING SEASON IN THE MIDWEST THE WEEKLY PROGRESS REPORTS RELEASED BY FARM STATES LATE MONDAY SHOW THAT SOYBEAN FARMERS NATIONWIDE HAVE PLANTED 83 OF THEIR INTENDED ACREAGE MUCH OF THE UNPLANTED ACREAGE IS IN STATES SUCH AS NEBRASKA SOUTH DAKOTA IOWA AND MINNESOTAWHERE THE PLANTING SEASON IS USUALLY COMPLETE BY THIS TIME OF THE YEAR ENERGY PETROLEUM FUTURES PRICES DRIFTED LOWER PULLED DOWN IN PART BY A WEAK GASOLINE MARKET JULY CRUDE HIT A LIFEOFCONTRACT LOW OF 1820 A BARREL BEFORE ITS EXPIRATION YESTERDAY ON THE NEW YORK MERCANTILE EXCHANGE IT RECOVERED SOMEWHAT NEAR THE CLOSE TO SETTLE AT 1842 DOWN 20 CENTS FOR THE DAY UNLEADED GASOLINE FOR JULY DELIVERY DROPPED BY 076 CENT A GALLON TO 539 CENTS THERE WAS LITTLE NEWS TO CONTRIBUTE TO THE DECLINES BUT THE GASOLINE MARKET GENERALLY IS PERCEIVED TO BE OVERSUPPLIED AND TRADERS SAID EXPECTATIONS OF A FURTHER BUILDUP IN US INVENTORIES OF THE FUEL CONTRIBUTED TO YESTERDAY'S PRICE FALL AFTER FUTURES TRADING CLOSED THE AMERICAN PETROLEUM INSTITUTE RELEASED ITS LATEST US OIL STATISTICS THE API REPORT SHOWED INVENTORIES OF GASOLINE ROSE LAST WEEK BY ONLY 450000 BARRELS LESS THAN EXPECTED BUT CRUDE OIL INVENTORIES JUMPED NEARLY 88 MILLION BARRELS 9306230133 930623 GM'S OPEL EXPECTS TO HAVE TOUGH YEAR AUGURING STEEP DROP IN EUROPEAN PROFIT BY TIMOTHY AEPPEL AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL FRANKFURT DAVID HERMAN THE CHAIRMAN OF ADAM OPEL AG THE GERMANBASED UNIT OF GENERAL MOTORS CORP SAID IT WILL BE VERY DIFFICULT TO HAVE A PROFIT IN 1993 HERALDING A DEEPERTHANEXPECTED DROP IN GM'S OVERALL EUROPEAN EARNINGS OPEL OFFICIALS ALSO CONFIRMED THAT THE UNIT PLANS TO CUT ABOUT 1700 OF ITS 53000 JOBS BY THE END OF THE YEAR THROUGH ATTRITION AND EARLYRETIREMENT OFFERS IT'S NOT CLEAR WHETHER OPEL WILL TAKE A CHARGE AGAINST EARNINGS TO COVER THE COSTS OF THE CUTBACKS MR HERMAN SPEAKING AT A PRESS CONFERENCE SAID THE COLLAPSE OF EUROPEAN AUTO SALES IS PROVING WORSE THAN HE ANTICIPATED TWO MONTHS AGO OPEL WAS PROFITABLE THROUGH MAY ADDED OPEL'S CHIEF FINANCIAL OFFICER GAIL S GUNDERSON BUT IT WILL BE DIFFICULT TO REMAIN PROFITABLE IN THE REMAINDER OF THE YEAR AS WE SEE VOLUMES DROP LOUIS R HUGHES THE GM EXECUTIVE VICE PRESIDENT IN CHARGE OF INTERNATIONAL OPERATIONS SAID LAST MONTH HE EXPECTED GM EUROPE TO REMAIN IN THE BLACK THOUGH PROFITS WOULD FALL FROM LAST YEAR'S 123 BILLION A GM SPOKESMAN DECLINED TO ELABORATE ON THOSE COMMENTS YESTERDAY BUT OPEL'S CONDITION CLEARLY IS GLOOMIER THAN GM EXPECTED IT WOULD BE GM HAS RELIED ON STRONG EUROPEAN PROFITS AS A SOURCE OF CASH TO FUND THE MASSIVE RESTRUCTURING OF ITS TROUBLED NORTH AMERICAN VEHICLE OPERATIONS MR HERMAN SAID OPEL STILL PLANS TO SHIP A 1992 DIVIDEND OF 400 MILLION MARKS 237 MILLION BACK TO ITS PARENT BUT THE WORSENING EUROPEAN SLUMP SEEMS CERTAIN TO CUT THAT CASH FLOW THIS YEAR IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GM COMMON SHARES ROSE 75 CENTS TO 43625 SEPARATELY MR HERMAN DISCLOSED SOME ADDITIONAL DETAILS BEHIND GM'S LEGAL BATTLE WITH ITS FORMER PURCHASING CHIEF J IGNACIO LOPEZ DE ARRIORTUA MR HERMAN SAID GM IS MISSING A SMALL BOOK DESCRIBING PLANS FOR AN ULTRAMODERN FACTORY THAT MR LOPEZ WANTS TO BUILD IN HIS HOME BASQUE REGION OF SPAIN MR HERMAN SAID MR LOPEZ DISTRIBUTED COPIES OF THE BOOK TO TOP GM AND OPEL OFFICIALS BUT WE HAVEN'T FOUND HIS COPY HE SAID MR LOPEZ IN AN INTERVIEW LAST WEEK SAID THE FLAP OVER THE BASQUE PLANT IS NO PROBLEM BECAUSE THE IDEAS INVOLVED ARE NO SECRET MR LOPEZ ADDED THAT HE HASN'T BEEN CONTACTED BY GERMAN PROSECUTORS TO DISCUSS GM'S ALLEGATIONS OF STOLEN SECRETS OPEL OFFICIALS CONFIRMED YESTERDAY THAT THEY HAVE COMPLAINED TO GERMAN JUSTICE MINISTRY OFFICIALS ABOUT THE SLOW PACE OF THE INVESTIGATION INTO CHARGES THAT MR LOPEZ AND SEVERAL ASSOCIATES STOLE PILES OF CONFIDENTIAL GM DATA BEFORE QUITTING FOR VOLKSWAGEN AG PROSECUTORS ON THE CASE WERE CALLED TO A MEETING YESTERDAY WITH THE HESSE STATE JUSTICE MINISTRY TO REPORT ON THE STATUS OF THE MATTER HESSE IS THE STATE WHERE OPEL IS BASED A SPOKESMAN FOR THE PROSECUTORS' OFFICE BALKED AT THE NOTION THE INVESTIGATION WAS MOVING TOO SLOWLY WE NEVER SAID THIS INVESTIGATION WAS GOING TO BE SHORT SAID THE SPOKESMAN 9306230132 930623 BUSINESS BRIEF WORTHEN CHIEF SEES LENGTHY INQUIRY BY FED INTO FIRM'S TIES TO STEPHENSES LITTLE ROCK ARK WORTHEN BANKING CORP HAS HAD SEVERAL MEETINGS WITH FEDERAL RESERVE BOARD INVESTIGATORS AND EXPECTS THE INQUIRY OF THE BANKING COMPANY'S TIES TO THE POWERFUL STEPHENS FAMILY TO BE A LENGTHY PROCESS SAID CHAIRMAN CURT BRADBURY WORTHEN HAS PROVIDED DOCUMENTS TO THE FED AND CONTINUES TO COOPERATE WITH THE INVESTIGATION MR BRADBURY SAID IN AN INTERVIEW AFTER YESTERDAY'S ANNUAL MEETING IT STRIKES ME FROM WHAT I'VE SEEN SO FAR THIS MIGHT TAKE SOME TIME HE SAID THE FED LAUNCHED A FORMAL INVESTIGATION OF THE STEPHENSES' TIES TO WORTHEN AFTER APPROVING THE COMPANY'S RECENT ACQUISITION OF UNION OF ARKANSAS CORP THE STEPHENS FAMILY CONTROLS 266 OF WORTHEN STOCK AND ITS INVESTMENT HOUSE HAS NUMEROUS BUSINESS RELATIONSHIPS WITH WORTHEN THE FED IS BELIEVED TO BE INVESTIGATING WHETHER THE STEPHENSES' TIES WITH WORTHEN WOULD VIOLATE BANKING STATUTES MR BRADBURY ALSO SAID WORTHEN EXPECTS TO EARN MORE THAN THE 204 A SHARE THE COMBINED COMPANIES WOULD HAVE POSTED FOR 1992 HAD THE ACQUISITION BEEN COMPLETED THEN HE DECLINED TO GIVE A MORE SPECIFIC PROJECTION BUT SAID OPERATING EFFICIENCIES FROM THE UNION ACQUISITION ARE ALREADY REDUCING EXPENSES THE COMPANY ALSO HAS PLANS FOR FURTHER ACQUISITIONS IN ARKANSAS NOW THAT THE STATE LEGISLATURE HAS RAISED THE CAP ON DEPOSITS CONTROLLED BY A SINGLE BANKING COMPANY TO 25 FROM 15 AND WORTHEN HOPES TO EXPAND IN TEXAS AS WELL WHERE IT HAS RECENTLY ESTABLISHED A BEACHHEAD IN AUSTIN IT'S NOT PARTICULARLY OUR STYLE TO BE A 100 MILLION BANK ANYWHERE AND BE NO 8 IN THE MARKET WE LIKE TO REACH A MORE CRITICAL MASS SAID MR BRADBURY WHO IS ALSO WORTHEN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND IS A FORMER STEPHENS INC EXECUTIVE AT THE ANNUAL MEETING WORTHEN SHAREHOLDERS ELECTED THREE FORMER UNION DIRECTORS TO THE BOARD RAISING ITS SIZE TO 15 MEMBERS THE NEWLY ELECTED DIRECTORS ARE WINTHROP PAUL ROCKEFELLER 44 YEARS OLD CHAIRMAN OF WINROCK FARMS INC ALEX DILLARD 43 EXECUTIVE VICE PRESIDENT OF DILLARD DEPARTMENT STORES INC AND HERBERT H MCADAMS II 77 FORMER CHIEF EXECUTIVE OF UNION OF ARKANSAS SHAREHOLDERS ALSO INCREASED THE NUMBER OF AUTHORIZED SHARES TO 40 MILLION FROM 20 MILLION ON MAY 10 THE COMPANY HAD 167 MILLION SHARES OUTSTANDING IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WORTHEN SHARES ROSE 50 CENTS TO 2250 9306230131 930623 US STEPS UP PUSH TO RECALL GM'S PICKUPS AUTO MAKER IS CHALLENGED TO SUPPORT ASSERTIONS ABOUT SIDE GAS TANKS BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT STEPPING UP ITS PRESSURE ON GENERAL MOTORS CORP TO RECALL PICKUP TRUCKS WITH SIDEMOUNTED GASOLINE TANKS CHALLENGED THE AUTO MAKER TO BACK UP ITS ASSERTIONS THAT THE VEHICLES ARE SAFE IN A 10PAGE LETTER SENT TO GM THURSDAY THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION CITED FURTHER STATISTICAL EVIDENCE AS WELL AS PAST STATEMENTS BY GM OFFICIALS TO TRY TO FORCE A RECALL OF THE C/K PICKUPS FOR EXAMPLE THE LETTER ASKED THE COMPANY TO EXPLAIN THE COMMENTS OF GM ENGINEER ROBERT SINKE WHO TOLD THE ENVIRONMENTAL PROTECTION AGENCY IN 1991 THAT PRESALE SAFETYTESTING PROGRAMS COULDN'T ADEQUATELY ASSESS THE RISK OF FUELSYSTEM FIRES THE AGENCY REQUESTED ON APRIL 9 THAT GM RECALL THE 47 MILLION PICKUPS WITH SIDEMOUNTED TANKS IN RESPONSE GM SAID THAT IN COLLISIONS OF NEARLY ALL SEVERITY THE RISK OF A POSTCOLLISION FIRE IS NO GREATER FOR OCCUPANTS OF C/K TRUCKS THAN THOSE IN FORD AND DODGE FULLSIZE PICKUPS LAST WEEK'S LETTER WAS THE NHTSA'S REPLY TO THE AUTO MAKER ACCORDING TO THE NHTSA MICHIGAN STATE DATA SHOW GM'S TRUCKS WITH SIDEMOUNTED TANKS HAVE A 52 HIGHER RISK OF FUEL LEAKS PLUS FIRES THAN DODGE TRUCKS AND A 40 HIGHER RISK OF FUEL LEAKS PLUS FIRES THAN FORD TRUCKS IN SIDEIMPACT CRASHES OF 73742 SIDEIMPACT CRASHES INVOLVING GM PICKUPS WITH SIDEMOUNTED TANKS 592 VEHICLES HAD FUEL LEAKS AND 26 HAD FUEL LEAKS AS WELL AS FIRES MICHIGAN IS THE ONLY STATE THAT TRACKS FUEL LEAKAGE AS WELL AS FUEL LEAKAGE PLUS FIRES IN ITS STATE ACCIDENT REPORTS THE MICHIGAN REPORTS USED BY THE NHTSA CHARTED ACCIDENTS DURING CALENDAR YEARS 19821991 AND INVOLVING GM PICKUPS WITH MODEL YEARS 19731987 GM SPOKESMAN BILL O'NEILL YESTERDAY SAID THE COMPANY WILL RESPOND TO THE AGENCY'S LATEST LETTER BUT ADDED WE HAVE PROVIDED MATERIAL TO NHTSA WHICH CLEARLY ESTABLISHES OUR POSITION THAT THE VEHICLES IN QUESTION HAVE MET ALL APPLICABLE SAFETY STANDARDS AND DO NOT CONTAIN A SAFETYRELATED DEFECT THE NHTSA ITSELF HAS SAID IT IS PLOWING NEW REGULATORY GROUND WITH THE CASE NEVER BEFORE HAS THE AGENCY ASKED FOR A RECALL OF A VEHICLE THAT MET THE APPLICABLE SAFETY STANDARDS AT THE TIME IT WAS BUILT MEANWHILE GM HAS BEGUN TALKS WITH PLAINTIFFS' ATTORNEYS ABOUT A POSSIBLE SETTLEMENT OF A LAWSUIT SEEKING TO REPRESENT ALL THE OWNERS OF THE PICKUPS BUT ANY KIND OF SETTLEMENT IN THAT LITIGATION WOULD REPRESENT A MAJOR SHIFT IN GM'S STAUNCH DEFENSE OF THE SAFETY OF ITS TRUCKS THE LONGER THE CAR COMPANY AND THE NHTSA DEBATE THE FEWER GM PICKUP TRUCKS WILL REMAIN ON THE ROAD CLARENCE DITLOW OF THE CENTER FOR AUTO SAFETY ESTIMATES THAT ATTRITION ALREADY HAS REDUCED THE NUMBER OF PICKUPS TO 45 MILLION THE COMPANY IN 1988 CHANGED THE DESIGN OF ITS PICKUPS TO PUT THE GAS TANK INSIDE THE STEEL UNDERFRAME GM IS EXPECTED TO CONTINUE RESISTING A RECALL IF THAT PROVES TO BE THE CASE THE NHTSA COULD HOLD HEARINGS BEFORE ORDERING A RECALL GM THEN COULD APPEAL THE AGENCY'S DECISION IN COURT 9306230130 930603 COUNTERPOINT THE MEANING OF THE POLITICS OF MEANING BY MICHAEL LERNER HILLARY CLINTON HAS BEEN UNDER FIERCE ATTACK FOR HAVING ADVOCATED A POLITICS OF MEANING AND ADVOCATING A SOCIETAL TILT AWAY FROM SELFISHNESS AND TOWARD CARING AND COMMUNITY ACCORDING TO PAUL GIGOT ON THESE PAGES LAST FRIDAY I AM MRS CLINTON'S GURU IN THESE MATTERS IT'S CERTAINLY TRUE THAT THE CLINTONS AND I ARE ON THE SAME WAVELENGTH ON THIS ISSUE BUT WHAT EXACTLY IS SO FRIGHTENING ABOUT THE POLITICS OF MEANING THE BASIC SUPPOSITION IS THIS HUMAN BEINGS HAVE PSYCHOLOGICAL ETHICAL AND SPIRITUAL NEEDS THAT TRANSCEND THE NORMAL LIBERAL AGENDA LIBERALS HAVE TENDED TO FOCUS EXCLUSIVELY ON ECONOMIC ENTITLEMENTS AND POLITICAL RIGHTS BUT MOST PEOPLE NEED SOMETHING MORE WE NEED TO BE PART OF LOVING FAMILIES AND ETHICALLY AND SPIRITUALLY GROUNDED COMMUNITIES THAT PROVIDE A MEANING FOR OUR LIVES THAT TRANSCENDS THE INDIVIDUALISM AND MEFIRSTISM OF THE COMPETITIVE MARKET MRS CLINTON MADE THIS POINT DECISIVELY WHEN SHE SAID IN HER AUSTIN SPEECH REPRINTED IN THE CURRENT ISSUE OF TIKKUN THAT THE MARKET KNOWS THE COST OF EVERYTHING BUT THE VALUE OF NOTHING WHAT COUNTS IN LIFE TRANSCENDS THE MATERIALISM OF THE MARKETPLACE SO TOO DOES IT TRANSCEND THE RIGHTSORIENTED FOCUS OF SO MUCH TRADITIONAL LIBERAL POLITICS AN ECONOMISTIC FOCUS FOR THE DEMOCRATS WORKED WELL IN THE '30S WHEN MOST AMERICANS WERE ECONOMICALLY OPPRESSED AND A RIGHTSORIENTED FOCUS WORKED WELL IN THE '60S WHEN MOST AMERICANS RESPONDED TO THE DEMANDS FOR EQUALITY OF THE CIVIL RIGHTS AND WOMEN'S MOVEMENTS BUT BY THE LATE '70S MOST AMERICANS WERE EXPERIENCING A DIFFERENT KIND OF PAIN A PAIN RELATED TO THE BREAKDOWN OF VALUES A CRISIS IN RELATIONSHIPS AN ESCALATING DIVORCE RATE A GROWING FRUSTRATION WITH THE ALIENATION PEOPLE WERE EXPERIENCING IN THE WORLD OF WORK IT WAS THE RIGHT NOT THE LEFT THAT RECOGNIZED THE CRISIS OF MEANING AND WENT ABOUT THE BUSINESS OF CREATING A NEW POLITICS OF MEANING NOBODY CLAIMED THAT RONALD REAGAN WAS TALKING PSYCHOBABBLE AS THEY NOW DO ABOUT HILLARY CLINTON WHEN THE REPUBLICAN STANDARDBEARER DENOUNCED THE CRISIS IN FAMILIES AND THE DECLINE OF VALUES NOBODY RENAMED HIS WIFE ST NANCY WHEN SHE TRIED TO PERSUADE HIGH SCHOOL STUDENTS TO JUST SAY NO TO DRUGS OR PREMARITAL SEX WHAT THE RIGHT RECOGNIZED BUT THE LEFT WOULD NOT WAS THAT THE SOCIETY WAS IN A DEEP ETHICAL AND SPIRITUAL CRISIS AND THAT CRISIS HAD EVERYTHING TO DO WITH HOW THE SOCIETY AND GOVERNMENT ARE ORGANIZED THE RIGHT UNDERSTOOD THAT IT WAS IMPOSSIBLE FOR INDIVIDUAL FAMILIES OR CHURCHES TO WITHSTAND THE HEAVY ASSAULT ON THE VALUES THEY WERE TRYING TO TEACH THEIR CHILDREN BUT THE RIGHT'S POLITICS OF MEANING WAS SEVERELY FLAWED BECAUSE WHAT IT PRESENTED AS A SOLUTION TO THE DEPRIVATION OF MEANING WAS A FANTASY OF AN IDEAL COMMUNITY AND IDEAL FAMILY THAT HAD NO REALITY IN PEOPLE'S DAILY LIVES THE RIGHT'S ANSWER TO THIS COMPLAINT OUR FANTASY DOESN'T WORK BECAUSE OF SOME OTHER GAYS BLACKS FEMINISTS TAXANDSPEND LIBERALS UNDERMINING OUR OTHERWISE WONDERFUL SOCIETY THE RIGHT IGNORED THE ROLE OF THE COMPETITIVE MARKETPLACE THE WAY OUR DAILY LIVES IN THE WORLD OF WORK LEAD US TO SUBORDINATE ALL VALUES TO THE STRUGGLE FOR MATERIAL SUCCESS NOR COULD THE RIGHT ACKNOWLEDGE THAT AN ECONOMY WHOSE BOTTOMLINE MENTALITY REWARDED THOSE WHO WERE MOST EFFECTIVE AT MANIPULATING OR CONTROLLING OTHERS WOULD NECESSARILY PRODUCE NARCISSISTIC PERSONALITIES WHO WERE UNABLE TO SUSTAIN LOVING RELATIONSHIPS IN FAMILY LIFE NEVERTHELESS MOST PEOPLE FELT GRATEFUL TO THE RIGHT BECAUSE PEOPLE INTUITIVELY UNDERSTOOD THAT THEIR CHILDREN'S REJECTION OF ETHICALLY AND SPIRITUALLY SENSITIVE VALUES HAD SOMETHING TO DO WITH OUTSIDE INFLUENCES AND THEY INTUITIVELY UNDERSTOOD THAT THE REASON RELATIONSHIPS AND FAMILIES WERE HARDER TO SUSTAIN HAD SOMETHING TO DO WITH SOCIAL REALITIES OUTSIDE THE FAMILY THE RIGHT WAS ABLE TO GET AWAY WITH BLAMING FEMINISTS BLACKS GAYS ETC BECAUSE THE DEMOCRATS AND THE LEFT SIMPLY HAD NO UNDERSTANDING OF THE CRISIS OF MEANING WHATSOEVER ETHICAL AND SPIRITUAL ISSUES FOR THE LIBERALS THESE WERE PURELY PERSONAL TO BE DEALT WITH THROUGH PSYCHOTHERAPY OR SUNDAYONLY RELIGION FEARING THAT THE FIRST AMENDMENT WOULD BE UNDERMINED IF A DEBATE ABOUT VALUES ENTERED INTO THE PUBLIC SPHERE OBLIVIOUS TO THE FACT THAT VALUES ALREADY HAD ENTERED THE PUBLIC SPHERE AND THAT RIGHTWING VALUES WERE TRIUMPHING BECAUSE LIBERALS REFUSED TO ENTER THE DEBATE THE DEMOCRATS BURIED THEIR HEADS IN THE SAND IMAGINING THAT IF THEY OFFERED ANOTHER MIDDLECLASS ENTITLEMENT OR MORE HIGHWAY CONSTRUCTION THEY WOULD WIN BACK THE AMERICAN PEOPLE IT TOOK BILL CLINTON TO SUBTLY BUT CONSISTENTLY WEAVE A POLITICS OF MEANING INTO HIS ECONOMIC PROGRAM FOR THE DEMOCRATS TO WIN BACK THE WHITE HOUSE NOW MRS CLINTON'S PUBLIC ESPOUSAL OF A POLITICS OF MEANING HAS LED TO A VIRTUAL PRESS RIOT THE PRESS FEELS PERSONALLY OFFENDED BECAUSE MRS CLINTON EXPLICITLY DERIDES THEIR CYNICISM AND WHAT I CALL THE NEW REPUBLIC SYNDROME OF ELITIST DENIGRATION OF VALUES AND RELIGION MRS CLINTON AND I BY INSISTING THAT THE SOCIETY CAN AND OUGHT TO MOVE FROM AN ETHOS OF SELFISHNESS TO AN ETHOS OF CARING AND COMMUNITY HAVE VIOLATED THE MEDIA'S HIGHEST RELIGIOUS BELIEF THE BELIEF THAT HUMAN BEINGS ARE MOTIVATED ONLY BY NARROW SELFINTEREST TO THE MEDIA IT SEEMS HILARIOUS THAT ANYONE PARTICULARLY ANYONE IN POLITICS COULD BE MOTIVATED BY ETHICAL OR RELIGIOUS VALUES AND SINCE ALL OF US HAVE OUR OWN CYNICISM IN PART A PRODUCT OF HAVING BEEN BURNED BY CHARLATANS WHO HAVE USED THE LANGUAGE OF LOVE AND CARING TO MASK THEIR OWN SELFINTEREST IN PART BECAUSE EACH OF US DAILY COMPROMISES OUR OWN VALUES IN FAVOR OF SELFINTEREST ON THE GROUND THAT IF WE DON'T DO THIS FIRST SOMEONE ELSE WILL TAKE ADVANTAGE OF US WE'VE ALLOWED OURSELVES TO JOIN THE PRESS ASSAULT ON THE CLINTONS THE MOMENT ANY SMALL SIGN OF SELFISHNESS HAS CROPPED UP EG HAIRCUTGATE MR CLINTON'S DROP IN THE POLLS IN THE PAST FEW MONTHS HAS BEEN A PRODUCT OF THREE THINGS THE FIERCE DESTABILIZATION CAMPAIGN MOUNTED BY CORPORATE ELITES AND THEIR CONGRESSIONAL ALLIES THREATENED BY HIS PROGRAM A DEEPLY CYNICAL MEDIA AND HIS OWN FAILURE TO FRAME HIS SPECIFIC POLITICAL PROGRAMS IN THE VALUE TERMS THAT HAD PREVIOUSLY MOBILIZED HIS CONSTITUENCY SURROUNDED BY WASHINGTON INSIDERS WHO HAVE CONVINCED HIM THAT THIS POPULARITY DROP REPRESENTS A POPULAR THIRST FOR MODERATION MR CLINTON MAY NOW MOVE EVEN FURTHER AWAY FROM THE MORAL VISION THAT GENERATED HIS HIGHEST POPULARITY BUT IF THE CLINTONS HAVE THE COURAGE TO PERSIST THEIR POLITICS OF MEANING MAY DO WHAT DEFICITREDUCTION SCHEMES AND POLICY WONKERY CANNOT SHOW AMERICANS THAT THE CLINTONS UNDERSTAND AND CARE ABOUT THEIR LIVES MR LERNER IS EDITOR AND PUBLISHER OF TIKKUN A BIMONTHLY JEWISH CRITIQUE OF POLITICS CULTURE & SOCIETY SEE RELATED LETTERS LETTERS TO THE EDITOR THE CARING CLINTONS GIVE US THE WILLIES WSJ JUNE 23 1993 9306030076 YY93 MM06 9306230129 930623 US EXPECTS LESS PROGRESS ON TRADE WITH JAPAN AFTER GOVERNMENT'S FALL BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION WHICH HAD EXPECTED BIG PROGRESS IN TRADE NEGOTIATIONS WITH JAPAN OVER THE NEXT FEW WEEKS IS SCALING BACK ITS GOALS IN THE WAKE OF THE MIYAZAWA GOVERNMENT'S FALL ADMINISTRATION OFFICIALS BELIEVE THEY HAVE THE BEST CHANCE TO WIN CONCESSIONS IN AREAS IN WHICH JAPAN'S POLITICAL LEADERS HAD CUT DEALS WITH THE NATION'S BUREAUCRACY FOR INSTANCE US NEGOTIATORS SAID THEY BELIEVE JAPAN'S MINISTRY OF FINANCE AND THE RULING LIBERAL DEMOCRATIC PARTY HAD PREVIOUSLY DECIDED TO OPEN UP PARTS OF JAPAN'S FINANCIAL SERVICES MARKET INCLUDING PENSION FUND MANAGEMENT AS PART OF WORLD TRADE TALKS BUT AMID THE POLITICAL UNCERTAINTY IN JAPAN SOME ADMINISTRATION OFFICIALS ARE CAUTIONING THAT THE JAPANESE COULD BACKTRACK EVEN IN FINANCIAL SERVICES NEGOTIATORS FROM THE US JAPAN CANADA AND THE EUROPEAN COMMUNITY ARE MEETING TODAY AND TOMORROW IN TOKYO TO TRY TO PUT TOGETHER A PACKAGE OF TARIFF CUTS AND MARKETOPENING MEASURES THAT WOULD REVIVE THE STALLED WORLD TALKS IF THEY ARE SUCCESSFUL THE HEADS OF STATE WOULD ANNOUNCE THE BREAKTHROUGH AT A SUMMIT MEETING IN TOKYO BEGINNING JULY 7 IN AREAS WHERE JAPANESE POLITICAL LEADERS HAVEN'T TAKEN A POSITION OR FACE OPPOSITION FROM THE BUREAUCRACY THE US DOESN'T EXPECT TO MAKE MUCH HEADWAY TRADE OFFICIALS SAID THEIR EFFORTS TO PERSUADE JAPAN TO NEGOTIATE ON OPENING JAPAN TO US IMPORTS ARE BOUND TO BE SLOWED THE US WANTS TO USE QUANTITATIVE TARGETS TO MEASURE JAPANESE PROGRESS IN MARKET LIBERALIZATION BUT JAPANESE POLITICIANS AND BUREAUCRATS HAVE ATTACKED THAT IDEA AS MANAGED TRADE AND THE PRESS HAS PORTRAYED IT AS FOREIGN BULLYING IT'S A LAME DUCK GOVERNMENT SAID ROBERT HORMATS VICE CHAIRMAN OF GOLDMAN SACHS & CO AND A FORMER US TRADE NEGOTIATOR THE PROSPECTS OF THEM MAKING MAJOR DECISIONS ON TRADE ARE VIRTUALLY NIL THE US HAD HOPED TO GET JAPAN TO AGREE TO THE BILATERAL NEGOTIATIONS DURING DISCUSSIONS IN TOKYO SUNDAY AND MONDAY AT BEST THE DEAL WOULD COVER THE SECTORS TO BE DISCUSSED DEADLINES FOR NEGOTIATIONS AND A COMMITMENT TO USE SOME SORT OF QUANTITATIVE MEASUREMENTS NOW US NEGOTIATORS SAY THEY DOUBT THEY WILL REACH ANY AGREEMENT DURING THE WEEKEND AND ARE EVEN HEDGING THEIR BETS ABOUT WHETHER ONE WILL BE READY IN TIME FOR THE SUMMIT ANY DEAL THEY ADD WOULD PROBABLY JUST COVER NARROW PROCEDURAL GROUNDS ESSENTIALLY AN AGREEMENT TO TALK FURTHER WHETHER WE CAN STILL GET A DEAL WHICH IS A GOOD ONE I DON'T KNOW BUT I THINK THAT IT LOWERS THE PROBABILITY SAID TREASURY DEPUTY SECRETARY ROGER ALTMAN WHO ADDED THAT HE BELIEVES THE US AND JAPAN WILL STRIKE SOME DEAL BY THE SUMMIT US NEGOTIATORS SAY THEY WILL QUICKLY PRESS THEIR TRADE AGENDA WITH A NEW JAPANESE GOVERNMENT ONCE IT IS FORMED BEFORE THE GOVERNMENT HEADED BY KIICHI MIYAZAWA FELL THE US HAD PIECED TOGETHER A SERIES OF TRADE INITIATIVES ALL DESIGNED TO IMPEL JAPAN TO MAKE CONCESSIONS JAPAN WAS CONSIDERED TO BE MOST VULNERABLE TO FOREIGN PRESSURE DURING THE SUMMIT WHICH IMAGECONSCIOUS JAPANESE LEADERS WANTED TO MAKE A SUCCESS SO THE US AND EC JOINTLY PRESSED JAPAN ON WORLD TRADE TALKS WHILE THE US UNVEILED ITS TOUGHEST BILATERAL TRADE DEMANDS IN DECADES THE US HOPED FOR BREAKTHROUGHS ON BOTH INITIATIVES DURING THE SUMMIT MEANWHILE US TRADE REPRESENTATIVE MICKEY KANTOR THREATENED TO IMPOSE TRADE SANCTIONS JUST BEFORE THE SUMMIT IF JAPAN DIDN'T OPEN ITS CLOSED CONSTRUCTION MARKET TO FOREIGN COMPANIES MR KANTOR A FORMER COLLEGE BASEBALL PLAYER BELIEVES THAT FIRING OFF SANCTIONS LIKE THROWING HIGH HARD FASTBALLS CAN WILT OPPONENTS IN MANY WAYS THE US PLAN TO PRY OPEN THE JAPANESE CONSTRUCTION MARKETAN INDUSTRY THAT IS WIDELY CONSIDERED CORRUPT AND A SOURCE OF PAYOFFS FOR JAPANESE POLITICIANS FORESHADOWED US PLANS FOR BROADER BILATERAL TALKS THE US WANTED JAPAN TO OPEN ITS CONSTRUCTION MARKET FULLY TO FOREIGN BIDDERS DO AWAY WITH REGULATIONS THAT FAVOR INCUMBENTS AND AGREE TO MULTIPLE QUANTITATIVE INDICATORS TO TRACK PROGRESS THE US PROPOSED THAT THE TWO COUNTRIES MEASURE HOW MANY TIMES FOREIGN COMPANIES SERVED AS PRIME CONTRACTORS FOR CONSTRUCTION PROJECTS AND HOW MANY FOREIGN ENGINEERS ARE ASSIGNED TO A PROJECT AMONG OTHER INDICATORS SOMETIMES SAID A US TRADE OFFICIAL JAPANESE COMPANIES FORMALLY INCLUDE US COMPANIES AS SUBCONTRACTORS BUT DON'T REQUIRE THEM TO DO ANY WORK THAT LIMITS THE US COMPANIES FROM DEVELOPING STRONG RELATIONSHIPS WITH JAPANESE FIRMS DURING NEGOTIATIONS THIS MONTH IN WASHINGTON JAPANESE OFFICIALS REJECTED THE US PROPOSALS DIDN'T SCHEDULE ANOTHER MEETING AND SAID THEY WOULD COMMUNICATE BY DIPLOMATIC CHANNELS SO FAR THEY HAVEN'T AS A RESULT MR KANTOR WAS READYING SANCTIONS BUT NOW SAID ADMINISTRATION OFFICIALS SANCTIONS AREN'T LIKELY UNTIL AFTER A NEW GOVERNMENT HAS FORMED AND HAS A CHANCE TO CONSIDER THE ISSUES WHEN YOU NEGOTIATE YOU'RE BETTER OFF WITH A STRONG NEGOTIATOR ON THE OTHER SIDE WHO CAN MAKE COMMITMENTS SAID MR HORMATS IN OTHER WORDS DON'T TOSS A HIGH HARD ONE AT A LAME DUCK CARL JOHNSTON CONTRIBUTED TO THIS ARTICLE 9306230128 930623 ECONOMY BANKS ARE STARTING TO EASE CREDIT CRUNCH COST OF BORROWING DECLINES FOR MORE CORPORATIONS BUT DEMAND IS SLUGGISH BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BANKS ARE LOWERING BORROWING COSTS FOR LARGE AND MIDSIZE COMPANIES AS EVIDENCE IS GROWING THAT THE CREDIT CRUNCH IS ON THE WANE FLUSH WITH STRONG BALANCE SHEETS AND A NEED TO FIND NEW SOURCES OF EARNINGS BANKS ARE AGGRESSIVELY SEEKING TO MAKE COMMERCIAL LOANS BUT BECAUSE MANY COMPANIES ARE STILL RELUCTANT TO BORROW BANKS HAVE BEEN CUTTING INTEREST RATES AND FEES ON LOANS TO ALL TYPES OF BORROWERS FROM INDUSTRIAL GIANTS SUCH AS ALUMINUM CO OF AMERICA TO SMALLER COMPANIES SUCH AS GOODY'S FAMILY CLOTHING INC A KNOXVILLE TENN RETAILER THERE IS MODEST TO SEVERE COMPETITION AMONG BANKS TO MAKE LOANS SAYS JAMES MENZIES PRESIDENT OF KEY BANK OF NEW YORK A UNIT OF KEYCORP AN ALBANYBASED BANK WITH OPERATIONS IN NINE STATES THE CREDIT CRUNCH SAYS MR MENZIES IS OVER I THINK THE LOWER BORROWING COSTS ARE CONSISTENT WITH THE FEDERAL RESERVE'S MAY SURVEY OF BANKS WHICH FOUND THAT A SIGNIFICANT NUMBER OF LOAN OFFICERS REPORTED AN EASING OF TERMS AND STANDARDS ON COMMERCIAL LOANS MANY REGIONAL AND FOREIGN BANKS ALSO HAVE BECOME MORE ACTIVE THE TREND COMES BEFORE ANY OF THE CLINTON ADMINISTRATION'S EFFORTS TO JUMPSTART LENDING THROUGH AN EASING OF REGULATORY BURDENS HAVE TAKEN EFFECT PART OF THE REASON FOR THE TREND IS THAT BANKS HAVE BILLIONS OF DOLLARS IN MATURING BONDS AND LOANS COMING DUE THIS YEAR BUT IT'S TOO EARLY TO TELL WHETHER LOAN DEMAND WILL PICK UP THIS YEAR AFTER A BLIP UPWARD LATE LAST YEAR TOTAL COMMERCIAL LOANS OUTSTANDING FELL TO 5897 BILLION IN APRIL FALLING AT A 56 ANNUAL RATE FOR THE THREE MONTHS ENDING APRIL 30 ACCORDING TO FEDERAL RESERVE DATA BUSINESSES ARE STILL CAUTIOUS ABOUT ADDING A LOT OF DEBT SAID JOHN LONSKI A MOODY'S ECONOMIST TO BE SURE THE NEW ATTITUDE AMONG BANKS DOESN'T MEAN EVERY COMPANY CAN NOW GET A LOAN CREDIT TERMS ARE STILL MUCH TOUGHER THAN THEY WERE IN THE 1980S AND THE LENGTH OF LOANS IS SHORTER MOREOVER SOME SMALL COMPANIES WITH SALES OF 1 MILLION OR LESS ARE STILL COMPLAINING THAT CREDIT IS TIGHT SOME BANKS SAY THESE LOANS ARE MORE EXPENSIVE TO ADMINISTER AND THEREFORE LESS PROFITABLE BUT IF THERE'S A GOOD CUSTOMER OUT THERE WE'RE ALL AGGRESSIVELY GOING AFTER IT SAID WILLIAM ROSSMAN CHIEF EXECUTIVE OF MIDSTATE BANK AN ALTOONA PA BANK WITH 105 BILLION IN ASSETS MR ROSSMAN WHO ALSO IS PRESIDENT OF ROBERT MORRIS ASSOCIATES A TRADE GROUP FOR COMMERCIAL LENDERS SAID BANKERS IN PLACES SUCH AS DALLAS ATLANTA AND FLORIDA ARE ALSO SEEING COMPETITION FOR LOANS HEAT UP WHILE CONSUMER LOAN RATES HAVE FALLEN THEY CONTINUE TO BE RELATIVELY HIGH SUGGESTING THEY ARE SUBSIDIZING PART OF THE COMMERCIAL LOAN RATE WAR AT THE SAME TIME BANKS HAVE QUIETLY LOWERED DEPOSIT RATES THIS YEAR ALSO HELPING OFFSET SHRINKING COMMERCIAL LOAN MARGINS ANOTHER REASON COMMERCIAL LOAN COSTS HAVE FALLEN IS THAT MORE COMPANIES HAVE INTEREST RATES TIED TO THEIR CREDIT RATINGS WHICH GENERALLY HAVE BEEN RISING ACCORDING TO DATA PROVIDED BY LOAN PRICING CORP A NEW YORK FIRM SPECIALIZING IN COMMERCIAL LOAN RESEARCH THE AVERAGE INTEREST RATE PLUS FEES FOR A LOAN TO A SINGLEA COMPANY HAS FALLEN TO 04 OF A PERCENTAGE POINT OVER THE LONDON INTERBANK OFFERED RATE OR LIBOR WHICH IS NOW AROUND 331 PERCENTAGE POINTS THAT COMPARES WITH 05 OF A PERCENTAGE POINT IN 1992 FOR DOUBLEB COMPANIES WITH RELATIVELY HIGH DEBT LOADS THE RATES HAVE FALLEN TO 191 PERCENTAGE POINTS OVER LIBOR FROM 218 LAST YEAR CORPORATIONS ARE ALSO PAYING LESS IN THE SECURITIES MARKET FOR DEBT OBLIGATIONS FOR MIDSIZE MIDDLEMARKET COMPANIES THE AVERAGE SPREAD OVER THE PRIME LENDING RATE NOW AT 6 HAS FALLEN TO 023 OF A PERCENTAGE POINT IN APRIL FROM 045 OF A PERCENTAGE POINT LAST YEAR ACCORDING TO LOAN PRICING AROUND 47 OF MIDDLEMARKET LOANS IN APRIL HAD SPREADS OF PRIME MINUS 05 OF A PERCENTAGE POINT OR LESS COMPARED WITH 38 ORIGINATED SINCE 1990 AND IN AN EFFORT TO UNDERCUT COMPETITORS SOME BANKS ARE OFFERING MIDSIZE BUSINESSES LOANS PEGGED TO LIBOR RATHER THAN THE HIGHER PRIME RATE PITTSBURGHBASED ALCOA FOR INSTANCE IS PAYING 008 TO 0125 OF A PERCENTAGE POINT IN FEES FOR A 750 MILLION CREDIT LINE IT'S THE FIRST ARATED COMPANY TO PAY LESS THAN ONEEIGHTH OF A PERCENTAGE POINT IN FEES ON A SYNDICATED BANK LINE SINCE 1990 WE NOT ONLY GOT WHAT WE WANTED BUT WE GOT A LOT MORE EVEN THOUGH PRICING WAS AGGRESSIVE SAID JAN HOMMEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF ALCOA WHEN WE WENT TO THE BANK MARKET WE FOUND IT TO BE QUITE LIQUID COMPANIES THAT WENT PRIVATE THROUGH LEVERAGED BUYOUTS AND HAVE SINCE CLEANED UP THEIR BALANCE SHEETS HAVE FOUND SIMILAR RESULTS GENERAL INSTRUMENT CORP THE CHICAGOBASED COMMUNICATIONS COMPANY INVOLVED IN SETTING STANDARDS FOR HIGHDEFINITION TELEVISION WILL SAVE AN ESTIMATED 4 MILLION A YEAR IN INTEREST COSTS ON A NEW 400 MILLION LOAN IT WILL PAY 125 PERCENTAGE POINTS DOWN FROM 25 PERCENTAGE POINTS OVER LIBOR SIMILARLY ANNTAYLOR STORES INC IS SHAVING INTEREST RATES ON A NEW 135 MILLION BANK DEAL TO 175 PERCENTAGE POINTS OVER LIBOR DOWN FROM 25 OVER LIBOR ON ITS EXISTING LOANS MIDSIZE COMPANIES ARE ALSO FINDING KEEN INTEREST FROM BANKS GOODY'S A CHAIN OF RETAILERS IN THE SOUTH AND MIDWEST FOUND ITS BANKS COMPETING FIERCELY FOR ITS BUSINESS AND ENDED UP WITH INTEREST RATES HALF A PERCENTAGE POINT LOWER ON ITS 80 MILLION IN WORKING CAPITAL LINES WE'LL MAX OUT AVAILABILITY WITH THE CHEAPEST BANK SAID DONALD VANDENBERG CHIEF FINANCIAL OFFICER NOW WE'RE TRYING TO GET THEM TO DO BATTLE ON THE SERVICE CHARGES FOR SMALLER COMPANIES CITICORP SAID THIS WEEK IT WOULD MAKE 1 BILLION IN LOANS AVAILABLE THIS YEAR FOR COMPANIES WITH SALES OF LESS THAN 20 MILLION AT ONE PERCENTAGE POINT OVER PRIME DOWN FROM TWO PERCENTAGE POINTS OR MORE LESLIE SCISM CONTRIBUTED TO THIS ARTICLE SEE RELATED STORY SOME HOME BUILDERS FIND LOANS ARE EASIER TO GET AS THE MARKET RECOVERS WSJ JUNE 23 1993 9306230126 930623 LEISURE & ARTS BOOKSHELF ELVIS TO MCDONALD'S A DECADE CATALOGED BY JOHN PODHORETZ DAVID HALBERSTAM'S NEW BOOK ON THE 1950S IS CALLED THE FIFTIES VILLARD 800 PAGES 2750 AND IT IS AS INSPIRED AND CLEVER AS ITS TITLE THERE IS NOTHING ABOUT THIS IMMENSELY LONG BOOK THAT EXPLAINS WHY MR HALBERSTAM WOULD SPEND SO MUCH TIME AND EFFORT TO PRODUCE IT IT HAS NO PASSION NO NARRATIVE DRIVE AND NO REAL THEME EXCEPT FOR THE STARTLINGLY OBVIOUS OBSERVATION THAT THE SOCIAL UPHEAVALS OF THE '60S WERE THE RESULT OF THE SOCIAL TRENDS OF THE '50S THE BOOK READS LIKE A SERIES OF ENTRIES FROM AN ENCYCLOPEDIA IN A BLAND FORMULAIC JOURNALESE MR HALBERSTAM TELLS MANY STORIES ALL OF THEM FAMILIAR THE FOUNDING AND GROWTH OF MCDONALD'S THE DISCOVERY OF ELVIS THE SUBURBANIZATION OF THE US THE FATCAT COMPLACENCY OF GENERAL MOTORS THE U2 SPY PLANE FIASCO MR HALBERSTAM IS ALWAYS GENTLE AND BALANCED EVEN TOWARD STOCK VILLAINS SUCH AS JOE MCCARTHY THE BOOK'S INOFFENSIVENESS IS IN SOME WAYS A VIRTUE MR HALBERSTAM IS A FLUENT WRITER AND THE FIFTIES MOVES ALONG SWIFTLY BUT AROUND PAGE 200 YOU GET TO WONDERING WHAT THE POINT IS EXACTLY AND IT SOON BECOMES CLEAR THAT THERE ISN'T ANY CENTRAL POINT AND EVEN THE AUTHOR'S INCIDENTAL OBSERVATIONS AREN'T PARTICULARLY INTERESTING HE DEVOTES AN ENTIRE CHAPTER TO THE SCORCHING IMPACT OF THE DECADE'S BESTSELLING NOVEL GRACE METALIOUS'S PEYTON PLACE THE POTBOILING AND OVERHEATED EVOCATION OF A SMALL NEW ENGLAND TOWN AND ITS SUFFOCATING AND INCESTUOUS EMBRACE OF THE WOMEN WHO LIVE THERE BUT RATHER THAN FOCUS ON THE REAL REASON FOR THE SUCCESS OF PEYTON PLACE IT CONFIRMED THE EMERGING SUPERPOWER'S GROWING CONTEMPT FOR THE PROVINCIAL MANNERS AND MORES OF THE SMALL TOWN THAT HAD PREVIOUSLY BEEN CONSIDERED THE NATION'S GREATEST STRENGTH MR HALBERSTAM DWELLS ON THE BOOK'S NEW LIFE AS AN ANCHOR OF WOMEN'SSTUDIES COURSES SO INSISTENT IS HE ON THIS POINT THAT HE DESCRIBES MS METALIOUS'S FEMINIST VISION IN TWO NEARLY IDENTICAL SENTENCES ON THE SAME PAGE AT THIS POINT AND SEVERAL OTHERS YOU GET THE SENSE THAT NEITHER MR HALBERSTAM NOR HIS EDITOR READ THE MANUSCRIPT MORE THAN ONCE THOUGH HE WRITES ABOUT ALL THE USUAL '50S OBSESSIONS HE MISSES SOME OF THE DECADE'S MOST INTERESTING CULTURAL TRENDS NOWHERE DOES HE WRITE ABOUT THE PENETRATION OF FREUDIANISM AND WHAT PHILIP RIEFF CALLED THE TRIUMPH OF THE THERAPEUTIC WHICH CHANGED AMERICAN CULTURE FAR MORE THAN THE FAST FOODS AND HOLIDAY INNS HE GOES ON ABOUT AT GREAT LENGTH THE RELENTLESS CURRENT FOCUS ON SELFDISCOVERY SELFHELP AND FINDING OUR INNER CHILD IS THE NATURAL OUTGROWTH OF POPULAR FASCINATION IN THE '50S WITH SUCH IDEAS AS NEUROSIS MATURITY THE OEDIPUS COMPLEX AND DR SPOCK'S CHILDREARING THEORIES MORE TELLING HE SAYS NOT A WORD ABOUT THE EXTRAORDINARY RELIGIOUS REVIVAL THAT TOOK THE NATION BY QUIET STORM IN THOSE YEARS THE IMPORTANCE OF WHICH WE MEMBERS OF THE CULTURAL ELITE SIMPLY CANNOT COME TO GRIPS WITH HE IGNORES THREE OF THE DECADE'S MOST POPULAR AND IMPORTANT MEN BILLY GRAHAM ARCHBISHOP FULTON SHEEN AND THE REV NORMAN VINCENT PEALE MR HALBERSTAM IS SO INTENT ON AVOIDING CONTROVERSY THAT HE CANNOT AND WILL NOT TAKE SIDES IN THE DEBATE ON THE MEANING OF THE DECADE HE HAS WRITTEN 800 PAGES ABOUT IT IS AMAZING BUT TRUE THAT WE ARE STILL ARGUING ABOUT THE '50S WELL INTO THE '90S LIBERALS FROM C WRIGHT MILLS TO STEPHANIE COONTS AUTHOR OF LAST YEAR'S HIGHLY REGARDED THE WAY WE WEREN'T HAVE TAKEN TO SNEERING AT THE DECADE AS A WHITESONLY TIME OF CONFORMITY WITH THE FRIGHTENINGLY CHEERFUL FIGURES OF OZZIE AND HARRIET NELSON AND BEAVER CLEAVER TOWERING OVER A NEUROTICALLY CONSUMERIST NATION CONSERVATIVES HAVE TAKEN TO EULOGIZING IT AS THE LAST GOOD PERIOD IN OUR HISTORY A DECADE OF CONFIDENCE AND AMERICAN PURPOSE IN A REMARKABLE PREFACE TO A REISSUE OF HIS 1953 BESTSELLER GOD AND MAN AT YALE WILLIAM F BUCKLEY JR CALLS THE '50S AN UNPARALLELED TIME OF LITERARY AND INTELLECTUAL FERMENT IT WAS DURING THIS PERIOD THAT ALMOST EVERY CULTURAL AND POLITICAL PARADIGM OF THE US CAME INTO FULL FLOWER THOSE OF US WHO KNOW ABOUT THE '50S ONLY FROM READING THE LITERATURE AND WATCHING THE MOVIES AND TELEVISION ARE ESSENTIALLY TRAPPED IN THE TELEVISED MYTHOLOGIES OF A DECADE WE WEREN'T EVEN ALIVE TO ENJOY WE DESPERATELY WANT TO LIVE BEHIND THE FABLED WHITE PICKET FENCES OF SUBURBIA ESPECIALLY AT 1958 PRICES WITH HELP FROM A GI LOAN AND AT THE SAME TIME WE ARE TERRIFIED OF BECOMING THE WASHEDOUT WHITEBREAD DENIZENS OF SPRINGFIELD HOMETOWN TO JIM AND MARGARET AND BUD AND KITTEN THE STICKFIGURE AMERICANS OF THE ULTIMATE '50S SITCOM FATHER KNOWS BEST MR HALBERSTAM DOES NOT OR CANNOT EXPLAIN THE APPEAL OF THIS FOR US INSTEAD HE CATALOGS FOR THOSE WHO HAVE SPENT THE LAST FEW DECADES IN A HYPERBARIC CHAMBER HIS DEPICTION OF AMERICA'S BOOM TIME WOULD DOUBTLESS SEEM EYEOPENING FOR THE REST OF US WHO HAVE BEEN READING ABOUT THESE THINGS AND WATCHING ENDLESS RECAPITULATIONS OF THEM ON TELEVISION FROM THE MOMENT PRESIDENT EISENHOWER LEFT OFFICE THE FIFTIES IS AS STULTIFYING AS THE DECADE'S CRITICS ALWAYS SAID IT WAS MR PODHORETZ IS PUBLISHER OF THE REPUBLICAN FAXWIRE 9306230125 930623 GETTING AN A' SHOULD GET KIDS A JOB BY MICHAEL HEISE PARENTS AND SCHOOLS ARE URGING BUSINESS THIS MONTH TO CREATE SUMMER JOBS FOR HIGHSCHOOLERS AND HIGHSCHOOL GRADUATES BUT US LAW HAS DEPRIVED BUSINESS OF A VALUABLE TOOL IN EVALUATING CANDIDATES THE VALUE OF HIGH GRADES AND A HIGHSCHOOL DIPLOMA IS LOST ON MANY OF AMERICA'S TEENAGERS PARTICULARLY THOSE PLANNING TO SKIP COLLEGE WHY BOTHER TO EXCEL WHEN A PROSPECTIVE EMPLOYER ISN'T EVEN GOING TO ASK IF YOU HAVE A DIPLOMA EVER SINCE THE SUPREME COURT'S GRIGGS DECISION IN 1971 EMPLOYERS HAVE AVOIDED USING MEASURES OF ACADEMIC PERFORMANCE SUCH AS HIGHSCHOOL DIPLOMAS OR STUDENT GRADES BECAUSE SOME OF THESE MEASURES YIELD RESULTS THAT DIFFER BY RACE OR ETHNIC GROUP LEAVING THE EMPLOYER OPEN TO LITIGATION THE CIVIL RIGHTS ACT OF 1991 FURTHER SOLIDIFIED A REQUIREMENT THAT EMPLOYERS WHO WANT TO USE TRANSCRIPTS OR DIPLOMAS IN THE HIRING PROCESS MUST SHOW HOW THESE MEASURES DIRECTLY RELATE TO THE SPECIFIC JOB TASKS TO BE PERFORMED THE DISPARATE IMPACT PRINCIPLE ENUNCIATED IN GRIGGS APPLIES TO EMPLOYERS HIRING GRADS AT MANY LEVELS THOSE WITH HIGHSCHOOL COLLEGE PROFESSIONALSCHOOL OR GRADUATESCHOOL DIPLOMAS BUT EMPLOYERS ARE MORE FREQUENTLY CONFRONTED WITH A CANDIDATE WHOSE HIGHEST DEGREE IS A HIGHSCHOOL DIPLOMA THE BURDEN TO ESTABLISH A LINK BETWEEN ACADEMIC MEASURES AND JOB REQUIREMENTS IS OFTEN TOO BOTHERSOME FOR MOST EMPLOYERS PARTICULARLY FOR ENTRYLEVEL JOBS LITIGATIONWARY EMPLOYERS END UP FALLING BACK ON STEREOTYPES OR ANECDOTAL INFORMATION WHEN HIRING FOR ENTRYLEVEL POSITIONS THE PROBLEM IS MINORITIES ARE MORE LIKELY THAN WHITES TO TRY TO ENTER THE WORK FORCE FRESH OUT OF HIGH SCHOOL SO IN THEIR ATTEMPT TO DENY UNSCRUPULOUS EMPLOYERS A POSSIBLE TOOL FOR EMPLOYMENT DISCRIMINATION CONGRESS AND THE COURTS HAVE ALSO DENIED EMPLOYERS POTENTIALLY IMPORTANT INFORMATION REMOVED CRITICAL INCENTIVES FROM THE NATION'S CLASSROOMS AND PARADOXICALLY HARMED THE VERY PEOPLE THAT THE CIVILRIGHTS LAWS WERE INTENDED TO PROTECT GIVEN THE ACHIEVEMENT INDICATORS COMING OUT OF MANY OF TODAY'S AMERICAN HIGH SCHOOLS ONE MIGHT WONDER WHY EMPLOYERS CONSIDER HIGHSCHOOL DIPLOMAS OR GRADES OF ANY VALUE GRADUATION FROM MANY HIGH SCHOOLS REQUIRES LITTLE MORE THAN THE STUDENT'S ABILITY TO BREATHE QUIETLY FOR FOUR YEARS THE EVERINCREASING NUMBER OF FUNCTIONALLY ILLITERATE HIGHSCHOOL GRADUATES UNDERSCORES THE DIPLOMA'S DIMINISHING VALUE GRADES ARE SIMILARLY DEVALUED BECAUSE OF THE LACK OF SUBSTANTIVE ACADEMIC REQUIREMENTS THE SMORGASBORD OF FLUFF CLASSES SERVED UP TO TODAY'S STUDENTS AND THE HYPERINFLATION OF GRADES NONETHELESS HIGHSCHOOL DIPLOMAS AND GRADES CONTAIN SOME INFORMATION THAT MIGHT BE USEFUL TO EMPLOYERS AT A MINIMUM A DIPLOMA SUGGESTS THAT THE STUDENT SHOWED UP AT SCHOOL FAIRLY REGULARLY FOR FOUR YEARS AND REFRAINED FROM CAUSING TOO MUCH TROUBLE COMPANIES PLAGUED BY EMPLOYER ABSENTEEISM MIGHT FIND THIS INFORMATION VALUABLE AND ALTHOUGH GRADES NO LONGER MEAN MUCH THE DIFFERENCE BETWEEN AN A AND A D IN SOME CLASSES SUCH AS ALGEBRA COULD BE IMPORTANT EVEN ENTRYLEVEL JOBS REQUIRE BASIC LITERACY AND NUMERACY MOREOVER ALLOWING EMPLOYERS TO USE HIGHSCHOOL DIPLOMAS OR GRADES IN THE HIRING PROCESS WOULD REINFORCE FOR STUDENTS PARTICULARLY THE WORKBOUND THE INCENTIVES TO ACHIEVE ACADEMICALLY STUDENTS WHO WANT TO ATTEND OUR NATION'S SELECTIVE COLLEGES AND UNIVERSITIES OR RECEIVE SCHOLARSHIPS NOW HAVE INCENTIVES TO PERFORM IN SCHOOL THAT THE OTHERS LACK JUST AS COLLEGE ADMISSIONS OFFICERS HAVE FOUND LINKS BETWEEN HIGHSCHOOL AND COLLEGE GRADES RESEARCHERS HAVE FOUND LINKS BETWEEN COMPETENCE IN CORE ACADEMIC SUBJECTS AND WORKER PRODUCTIVITY ALTHOUGH AT PRESENT HIGHSCHOOL GRADES ARE UNRELATED TO JOBS AND PAY FOR 18YEAROLDS ACADEMIC ACHIEVEMENT IS RELATED TO JOBS AND PAY FOR THOSE OVER 25 OTHER INDUSTRIALIZED COUNTRIES SUCH AS JAPAN AND GERMANY KNOW THIS POLICIES IN THESE COUNTRIES SUCCESSFULLY LINK ACADEMIC PERFORMANCE WITH EMPLOYMENT GERMAN COMPANIES GIVE THE MOST DESIRED APPRENTICESHIPS TO STUDENTS WHO PERFORM WELL IN SCHOOL IN JAPAN MANY JOBS ARE AWARDED ON THE BASIS OF GRADES OR TEACHER RECOMMENDATIONS CLEARLY EMPLOYERS MUST NOT BE ALLOWED TO DISCRIMINATE ON THE BASIS OF RACE LESS CLEAR IS WHY EMPLOYERS SHOULD NOT BE ABLE TO USE HIGHSCHOOL DIPLOMAS AND GRADES WHEN MAKING HIRING DECISIONS CONGRESS WITHOUT DELAY SHOULD REMOVE THE THREAT OF A CIVILRIGHTS LAWSUIT FROM EMPLOYERS WHO WANT TO WEIGH HIGHSCHOOL DIPLOMAS AND GRADES IN THE HIRING PROCESS THE IMPACT OF SUCH A CHANGE WOULD GO FAR BEYOND THE EMPLOYMENT OFFICE AND REACH INTO MANY OF OUR NATION'S CLASSROOMS WITHOUT COSTING A PENNY THIS EDUCATION REFORM WOULD PROVIDE PALPABLE REASONS FOR MORE STUDENTS TO ACHIEVE MR HEISE IS A RESEARCH FELLOW AT THE HUDSON INSTITUTE IN INDIANAPOLIS 9306230124 930623 INTERNATIONAL OMAN BUYS BRITISH BATTLE TANKS LONDON BRITISH MECHANICALENGINEERING GROUP VICKERS PLC SAID IT WON AN ORDER FROM THE PERSIAN GULF EMIRATE OF OMAN TO SUPPLY CHALLENGER 2 MAIN BATTLE TANKS AND OTHER VEHICLES INDIVIDUALS FAMILIAR WITH THE DEAL SAID OMAN'S FIRM ORDER IS FOR 18 TANKS AND TOTALS ABOUT 140 MILLION POUNDS 207 MILLION ANOTHER SIMILAR ORDER IS EXPECTED VICKERS NOTED THAT THIS IS THE FIRST MAJOR EXPORT ORDER FOR CHALLENGER 2 TANKS AND SUPPLEMENTS A CONTRACT TO SUPPLY THE BRITISH ARMY WITH 127 SUCH TANKS DELIVERIES ARE TO BEGIN NEXT YEAR 9306230123 930623 ENTERPRISE SMALL FISH IN THE TACKLE BUSINESS ARE TRYING NEW LURES INDEPENDENTS REEL IN CUSTOMERS BY OFFERING WHAT DISCOUNTERS LACK BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL RUNNING A FISHINGTACKLE SHOP THE DAYDREAM OF COUNTLESS ANGLERS IS GETTING TOUGHER INTEREST IN SPORTS FISHING IS SLIPPING AND DISCOUNTERS ARE GRABBING MARKET SHARE BUT THE SMALL RETAILERS ARE FIGHTING BACK FOR INSTANCE ED SHIRLEY & SONS SPORTS INC WHICH OWNS FOUR CHICAGOAREA STORES HAS TEAMED UP WITH A LOCAL RADIO STATION TO OFFER A HOT LINE 708776BASS GIVING TACKLE TIPS AND REPORTS ON LOCAL FISHING SPOTS LET'S START WITH LAKE MICHIGAN BEGAN A RECENT REPORT COHO SALMON IS STILL THE BIG NEWS OUT ON THE LAKE AS WELL AS CHINOOKS EVERYBODY WHO'S WORKING CLOSE TO SHORE AND OVER 100 FEET OF WATER IS TAKING FISH CATCHING THEM ON FLIES TROLLING FLAT LINES CRANK BAITEVERYTHING SUCH NITTYGRITTY INFORMATION HAS HELPED ED SHIRLEY BUILD CUSTOMER AWARENESS SAYS GLEN SHIRLEY PRESIDENT OF THE CHAIN HE EVEN WELCOMES CUSTOMER COMPLAINTS ABOUT INACCURATE REPORTS BECAUSE IT SHOWS THE CALLERS CARE WE ARE ALL FIGHTING FOR THE SAME LIMITED MARKET AND ANYTHING THAT GETS CUSTOMERS THINKING ABOUT US IS WORTH DOING MR SHIRLEY SAYS IT IS AN UPHILL FIGHT SOME 61 MILLION PEOPLE FISHED AT LEAST ONE DAY IN THE US LAST YEAR SAYS THE AMERICAN FISHING TACKLE MANUFACTURERS ASSOCIATION IN BARRINGTON ILL BUT THAT IS DOWN 11 FROM 1990 MANY SMALL RETAILERS SAY TACKLE SALES WERE OFF LAST YEAR AND REMAIN SLUGGISH THIS SEASON EQUALLY WORRISOME IS THAT MANY PARENTS ARE NO LONGER TEACHING THEIR CHILDREN TO FISH SOME POINT TO A RISING NUMBER OF SINGLE PARENTS AND CAREER COUPLES WHO JUST DON'T HAVE THE TIME MEANWHILE WALMART STORES INC KMART CORP SPORTS SUPERSTORES AND OTHER DISCOUNTERS ARE AGGRESSIVELY EXPANDING INTO THE MARKETPLACE GRABBING CUSTOMERS FROM THE INDEPENDENTS PRICE PRESSURE HAS DRIVEN MANY INDEPENDENT RETAILERS OUT OF BUSINESS IN THE LAST FEW YEARS BUT THE SURVIVORS THINK THEY HAVE A STRATEGY TO KEEP GOING OFFER SERVICES THE DISCOUNTERS DON'T MATCH AND CAST WIDELY FOR NEW CUSTOMERS SHOPS ARE TRYING EVERYTHING MORE STORES ARE ORGANIZING FISHING TRIPS LED BY THEIR OWN SALESPEOPLE OTHERS ARE OFFERING SEMINARS ON ANYTHING FROM BASIC FISHING FOR CHILDREN TO MANAGING THAT SIXFOOT TARPON ON YOUR LINE TO ENDURE SMALL STORES MUST FIND WAYS TO GRAB AN INCREASING SHARE OF A SHRINKING MARKET SAYS SID DOOLITTLE A CHICAGO RETAILING CONSULTANT FOR MANY THAT MEANS CAPITALIZING ON THE WEAKNESSESS OF THE MASS MERCHANDISERS ADDS HELEN SEVIER CHAIRMAN OF BASS INC A PUBLISHER OF SPORTS FISHING MAGAZINES MANY SMALL RETAILERS ARE BRAINSTORMING FOR WAYS TO ENTICE YOUNG CHILDREN TO TRY FISHING INDUSTRY SURVEYS INDICATE THAT MOST PEOPLE WHO FISH FIRST TRIED THE SPORT BEFORE THEIR 10TH BIRTHDAY SALMON STOP INC IN WAUKEGAN ILL PARTICIPATES IN A COMMUNITY PROGRAM THAT URGES CHILDREN TO GET HOOKED ON FISHING NOT ON DRUGS RUN THROUGH A LOCAL SCHOOL AS PART OF A NATIONAL PROMOTION SPONSORED BY THE TACKLE INDUSTRY THE PROGRAM INCLUDES TALKS ON FISHING BY A SALMON STOP SALESMAN AND 10 DISCOUNTS ON SHOP ITEMS FOR CHILDREN WHO PLEDGE TO STAY OFF DRUGS IN ADDITION THE SHOP SAYS IT ANNUALLY DONATES HUNDREDS OF DOLLARS IN FISHING HATS RODS REELS SMALL TACKLE KITS AND BAIT FOR LOCAL FAMILY FISHING EVENTS IT RECENTLY DONATED HUNDREDS OF PACKAGES OF WORMS RUBBER AND LIVE FOR THE COMMUNITY'S GONE FISHIN' DERBY THE EVENT HELD JUNE 12 AT A LOCAL POND DREW ABOUT 250 CHILDREN AND ADULTS AND ATTRACTED NEW CUSTOMERS TO THE SHOP OTHER RETAILERS TRY TO FIND WAYS TO HELP CUSTOMERS FIND A FISHING COMPANION MR CB'S BAIT & TACKLE IN SARASOTA FLA TEAMS UP WITH LOCAL CHARTERBOAT CAPTAINS TO OFFER INSTRUCTIONAL SEMINARS ON FISHING AND DISCOUNTED TRIPS IN THE PROCESS CUSTOMERS LINK UP WITH LIKEMINDED SOULS THE CAPTAINS GET CHARTER BUSINESS AND MR CB'S SELLS TACKLE AND OTHER ITEMS HANK COVERT A RETIRED EXECUTIVE FOUND A FISHING BUDDY IN ED HURST A CHARTER BOAT CAPTAIN AFTER HEARING HIS SEMINAR AT MR CB'S THEY NOW FISH TOGETHER SEVERAL TIMES A YEAR AND MR COVERT BUYS HIS TACKLE FROM MR CB'S MANY SMALL RETAILERS ALSO STRESS OFFERING MERCHANDISE THE DISCOUNTERS DON'T CARRY K & K TRUE VALUE HARDWARE IN BETTENDORF IOWA SPECIALIZES IN ITEMS CUSTOMERS USE TO MAKE THEIR OWN TACKLE SUCH AS SPINNER BLADES IN 14 SIZES TINSEL IN 40 COLORS SWIVELS HOOKS WEIGHTS CHICKEN FEATHERS DEER FUR AND THE LIKE IT SELLS THEM INDIVIDUALLY OUT OF OPEN BINS AND BOXES RATHER THAN IN PACKAGED SETS AS DISCOUNTERS DO SAYS MIKE PETERSON A K & K OWNER YOU HAVE TO OFFER THE GOOD FISHERMAN A GOOD VARIETY HE SAYS INEXPERIENCED ANGLERS GET ONTHESPOT INSTRUCTION ON MAKING LURES HE ADDS THE STRATEGY PAYS OFF BECAUSE THE STORE SELLS A HUGE VOLUME OF SUCH ITEMS HE SAYS THOUGH THE ITEMS SELL FOR ONLY FIVE TO 50 CENTS APIECE THE STORE'S MARGINS ON THEM RANGE FROM 100 TO 200 HE ADDS OFFERING BETTER SERVICE THAN MOST DISCOUNTERS IS ALSO CRITICAL QUAKER LANE BAIT & TACKLE LTD IN NORTH KINGSTOWN RI BEGAN REPAIRING TROLLING MOTORS RODS AND REELS AFTER MICHAEL BESTWICK BOUGHT THE SHOP FROM HIS FATHER FIVE YEARS AGO THE SON INVESTED SEVERAL THOUSAND DOLLARS TO TRAIN TWO EMPLOYEES IN MOTOR REPAIR AND OTHERS LEARNED TACKLE REPAIR BY TINKERING THE RESULT QUAKER LANE ENJOYS PROFIT MARGINS OF MORE THAN 100 ON ITS REPAIR WORK MORE THAN DOUBLE THE AVERAGE MARGINS ON ITS TACKLE SALES MR BESTWICK SAYS ITS SERVICE SALES PLUS TACKLE SALES TO SERVICE CUSTOMERS HAVE GROWN TO ACCOUNT FOR ABOUT 20 OF ITS TOTAL SALES OF MORE THAN 1 MILLION HE ADDS 9306230121 930623 ABREAST OF THE MARKET STOCKS RETREAT AMID FORECASTS OF WEAK SECONDQUARTER PROFITS BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WORRIES ABOUT CORPORATE PROFITS SENT STOCKS LOWER AS A HANDFUL OF COMPANIES INCLUDING GIANT RETAILER KMART PREDICTED DISAPPOINTING SECONDQUARTER RESULTS THE SPATE OF DISAPPOINTMENTS REINFORCED THE EARNINGS JITTERS THAT HAD CREPT INTO THE MARKET FOLLOWING DOWNBEAT FORECASTS FROM NIKE AND REEBOK INTERNATIONAL LAST WEEK AND FROM MINNESOTA MINING & MANUFACTURING THE WEEK BEFORE KMART TUMBLED 1 1/2 TO 20 1/8 ON HEAVY VOLUME OF 52 MILLION SHARES OTHER RETAILERS FOLLOWED INCLUDING WALMART STORES WHICH EASED 1/4 TO 24 7/8 ON BIG BOARDLEADING VOLUME OF 114 MILLION SHARES THE DOW JONES INDUSTRIAL AVERAGE SHED 1329 OR 038 TO END AT 349753 BIG LOSERS AMONG COMPONENT ISSUES INCLUDED SEARS ROEBUCK & CO DOWN 1 TO 53 1/4 AND WOOLWORTH OFF 3/4 TO 27 5/8 OUTSIDE THE RETAIL ARENA CATERPILLAR SLUMPED 1 1/2 TO 74 1/4 IT TOO HAS BEEN THE SUBJECT OF EARNINGS CONCERNS RECENTLY THE LOSSES IN BROADER INDEXES WERE BLUNTED IN PART BY STRENGTH IN FINANCIALRELATED ISSUES CITICORP JUMPED 1 1/8 TO 29 1/4 DONALDSON LUFKIN & JENRETTE ANALYST FRANK DESANTIS INCREASED HIS 1994 EARNINGS ESTIMATE FOR THE NEW YORK BANK HOLDING COMPANY BUT POOR EARNINGS FORECASTS WERE MORE PLENTIFUL THAN POSITIVE ONES OTHER STOCKS TORPEDOED BY NEWS ABOUT THE EARNINGS OUTLOOK INCLUDED CONTINENTAL MEDICAL WHICH DROPPED 3 3/8 TO 8 3/8 CHEMICAL WASTE MANAGEMENT DOWN 1 5/8 TO 10 1/8 AND OUTBOARD MARINE OFF 1 1/2 TO 16 7/8 DESPITE THE GLOOM WILLIAM DODGE CHAIRMAN OF THE INVESTMENT POLICY COMMITTEE AT DEAN WITTER REYNOLDS SAID HE EXPECTS SECONDQUARTER PROFITS AS A WHOLE TO MEET ANALYSTS' EXPECTATIONS HE PREDICTED THAT OVERALL OPERATING EARNINGS WOULD BE UP 10 TO 12 FROM A YEAR EARLIER MR DODGE SAID INVESTORS HAVE OVERREACTED TO THE DISAPPOINTING FORECASTS THE MARKET READS THE WORST INTO THESE REPORTS THE FUNDAMENTAL ANNOUNCEMENTS ARE MUCH MORE TEMPERED THAN THE MARKET REACTIONS HAVE BEEN HE SAID ONCE THE EARNINGS NEWS IS OUT OF THE WAY SOMETIME NEXT MONTH MR DODGE SAID STOCK PRICES SHOULD HEAD HIGHER EDWARD NICOSKI MARKET ANALYST AT PIPER JAFFRAY DISAGREED HE SAID STOCKS ARE LIKELY TO DECLINE IN THE NEAR TERM BUFFETED BY CONCERNS ABOUT THE ECONOMY AND THE CLINTON ADMINISTRATION'S INITIATIVES THERE IS GRIDLOCK IN THE MARKET THERE IS GRIDLOCK IN THE ECONOMY AND THE SAME IN CONGRESSGRIDLOCK THERE IT COULD BE A LONG SUMMER MR NICOSKI SAID MEANWHILE TROY MICHBASED KMART SLUMPED AFTER IT SAID EARNINGS FOR THE SECOND QUARTER ENDING NEXT MONTH ARE LIKELY TO BE SIGNIFICANTLY BELOW THE 37 CENTS A SHARE IT POSTED A YEAR EARLIER IT SAID POOR WEATHER AND CAUTIOUSNESS AMONG CONSUMERS HAD DEPRESSED ITS APPAREL SALES CONTINENTAL MEDICAL A MECHANICSBURG PA MEDICAL REHABILITATION CONCERN SAID ITS FOURTHQUARTER EARNINGS FROM OPERATIONS WILL LIKELY BE FIVE CENTS TO SEVEN CENTS A SHARE BELOW THE 25 CENTS THAT ANALYSTS HAVE PREDICTED IN ADDITION THE COMPANY WILL TAKE A NONRECURRING PRETAX CHARGE OF 195 MILLION IN THE PERIOD WHICH ENDS THIS MONTH OUTBOARD MARINE SHARES SLUMPED AFTER THE WAUKEGAN ILL MAKER OF RECREATIONAL BOATS AND MARINE ENGINES PREDICTED THAT ITS THIRDQUARTER PROFIT FROM OPERATIONS WILL BE LOWER THAN A YEAR EARLIER IT CITED LOSSES IN ITS EUROPEAN BUSINESS AND CONTRACTING PROFIT MARGINS IN THE US CHEMICAL WASTE MANAGEMENT SANK ON NEWS THAT IT EXPECTS ITS OPERATING EARNINGS TO FALL TO FIVE CENTS TO SIX CENTS A SHARE IN THE SECOND QUARTER FROM A PRO FORMA 16 CENTS LAST YEAR THE OAK BROOK ILL COMPANY BLAMED THE DECLINE ON WEAKNESS IN ITS DISPOSAL AND CLEANUP BUSINESSES AND DEPRESSED PRICES IN ITS INCINERATOR OPERATIONS SHARES OF WMX TECHNOLOGIES PARENT OF CHEMICAL WASTE MANAGEMENT FELL 2 3/8 TO 33 1/8 STEEL ISSUES JUMPED AFTER THE COMMERCE DEPARTMENT LEVIED PENALTIES AGAINST 19 COUNTRIES FOR DUMPING STEEL IN THE US BETHLEHEM STEEL ROSE 1 1/4 TO 19 1/2 USXUS STEEL GROUP ADDED 1 3/4 TO 43 1/2 AND INLAND STEEL GAINED 7/8 TO 27 1/4 CONVERSION INDUSTRIES JUMPED 1 1/8 TO 30 3/4 AFTER THE PASADENA CALIF COMPANY SAID IT WILL SPIN OFF ITS STATORDYNE CORP AFFILIATE TO SHAREHOLDERS ONE SHARE OF THE AFFILIATE WILL BE DISTRIBUTED FOR EVERY FIVE CONVERSION INDUSTRIES SHARES HELD BRILLIANCE CHINA CLIMBED 2 1/8 TO 18 1/4 THE HONG KONG COMPANY SAID AUTHORITIES IN CHINA AGREED TO CUT THE TARIFFS BRILLIANCE CHINA PAYS TO IMPORT THE KITS IT USES TO ASSEMBLE SOME OF ITS MINIBUSES 9306230119 930623 INTERNATIONAL SEMITECH TO SELL STAKE IN SINGER TO MAJOR HOLDER BY CRAIG S SMITH AND MARK HEINZL STAFF REPORTERS OF THE WALL STREET JOURNAL IN A CASHRAISING EXERCISE SEMITECH GLOBAL CO OF HONG KONG SAID IT PLANS TO SELL ITS 51 STAKE IN SINGER CO FOR 850 MILLION TO SEMITECH'S CONTROLLING SHAREHOLDER INTERNATIONAL SEMITECH MICROELECTRONICS INC OF MARKHAM ONTARIO INTERNATIONAL SEMITECH PLANS TO PAY FOR THE STAKE BY BORROWING ABOUT 300 MILLION AND SELLING ABOUT 550 MILLION OF NEW SHARES THE TRANSACTIONS WILL GIVE SEMITECH GLOBAL A WAR CHEST OF MORE THAN 700 MILLION FOR POSSIBLE NEW INVESTMENTS EVEN AFTER IT PAYS SPECIAL DIVIDENDS OF ABOUT 113 MILLION TO ITS SHAREHOLDERS THE COMPANY SAID IT WILL FOCUS ON NEARTERM INVESTMENT AND ACQUISITION STRATEGY ON THE HIGHGROWTH ASIAPACIFIC REGION INCLUDING CHINA ENTREPRENEUR JAMES TING WHO CONTROLS ALL THREE COMPANIES SAID THE MOVE WOULD UNLOCK SEMITECH GLOBAL'S POTENTIAL BY REPLACING ITS LOWYIELDING SINGER SHARES WITH CASH INTERNATIONAL SEMITECH MAKES AND DISTRIBUTES CONSUMER ELECTRONICS AND DURABLE GOODS SEMITECH GLOBAL BASED IN HONG KONG IS 42 OWNED BY INTERNATIONAL SEMITECH SINGER WHICH MAKES AND MARKETS SEWING MACHINES AND DISTRIBUTES CONSUMER GOODS IS INCORPORATED IN THE NETHERLANDS ANTILLES BY SHUFFLING HIS DECK OF COMPANIES MR TING HOPES TO REVITALIZE SEMITECH GLOBAL'S SAGGING STOCK PRICE WHICH HAS LAGGED BEHIND THE PERFORMANCE OF INTERNATIONAL SEMITECH MICROELECTRONICS AND SINGER ON THEIR RESPECTIVE EXCHANGES SINCE AUGUST 1991 WHEN SINGER WENT PUBLIC IN NEW YORK THE STOCK HAS MORE THAN DOUBLED INTERNATIONAL SEMITECH HAS GAINED A SIMILAR AMOUNT DURING THE SAME PERIOD IN TORONTO SEMITECH GLOBAL'S SHARES MEANWHILE HAVE EDGED DOWN FROM ABOUT 17 HONG KONG DOLLARS US2196 A SHARE IN AUGUST 1991 TO TUESDAY'S CLOSE OF HK1620 A SHARE IN HONG KONG THE TRANSACTION VALUES SINGER'S SHARES AT US3350 INTERNATIONAL SEMITECH CLASS A SHARES CLOSED AT 21375 CANADIAN DOLLARS DOWN 50 CENTS ON THE TORONTO STOCK EXCHANGE YESTERDAY IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE SINGER WAS QUOTED AT 3525 A SHARE UP 1125 INTERNATIONAL SEMITECH'S CASHRAISING EXERCISE WILL BE ONE OF THE LARGEST EVER FOR THE TORONTO STOCK EXCHANGE ACCORDING TO MR TING OTHERS IN HONG KONG'S FINANCIAL COMMUNITY SAY THE ASSET SALE REPRESENTS ONE OF THE LARGEST SINGLE TRANSFERS OF CASH FROM CANADA TO HONG KONG IN RECENT HISTORY THE COMPANY PLANS TO MAKE THE DEBT OFFERING IN THE US AND SELL SHARES IN NORTH AMERICA AND EUROPE ANALYSTS SAID THE TRANSACTION SHOULD SUCCEED IN RAISING SINGER'S VALUATION IN THE SEMITECH CONGLOMERATE AND SIMPLIFY THE SEMITECH CORPORATE STRUCTURE IN THE LONG TERM THERE'S NO DOUBT THIS IS AN EXCELLENT MOVE SAID TONY TSOI AN ANALYST WITH NESBITT THOMSON INC IN TORONTO THE PREVIOUS CORPORATE STRUCTURE WAS TOO CONFUSING 9306230118 930623 INTERNATIONAL FRANCE AND GERMANY WALK FINE LINE TO MAINTAIN TIES AMID DISAGREEMENTS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL COPENHAGEN FRANCE AND GERMANY ARE STRUGGLING TO KEEP THEIR INTIMATE RELATIONSHIP ON TRACK IN THE FACE OF FUNDAMENTAL POLICY DISAGREEMENTS OVER TRADE AND EUROPE'S RESPONSE TO THE BOSNIA CRISIS THE BONNPARIS LINK HAS LONG BEEN THE MACHINE THAT DRIVES THE EUROPEAN COMMUNITY IT HAS BEEN WELLOILED IN RECENT YEARS BY THE PERSONAL RELATIONSHIP BETWEEN FRANCOIS MITTERRAND THE FRENCH PRESIDENT AND GERMAN CHANCELLOR HELMUT KOHL BUT THE TIES ARE UNDER STRAIN AS THE EC STRUGGLES WITH RECESSION ITS IMPOTENCE TO DEAL WITH A CIVIL WAR IN YUGOSLAVIA AND THE UNEXPECTED BACKLASH AGAINST THE MAASTRICHT TREATY ON EUROPEAN UNITY A FRANCOGERMAN INITIATIVE WHILE THE FRENCH AND GERMANS NORMALLY TRY TO CONCEAL ANY STRAINS SUBSTANTIVE DIFFERENCES SURFACED AT A TWODAY EC SUMMIT IN COPENHAGEN THAT ENDED YESTERDAY IN BOTH OF THE DIVISIVE ISSUES WORLD TRADE TALKS AND THE QUESTION OF WHETHER TO ARM BOSNIA'S MUSLIMS THE US SEEN BY FRENCH OFFICIALS AS A MISCHIEFMAKERFIGURES IN THE EQUATION RELATIONS WITH GERMANY ARE GOING THROUGH A VERY DIFFICULT PHASE AT THE MOMENT SAID A SENIOR FRENCH OFFICIAL IN A MOMENT OF EXASPERATION DURING THE SUMMIT AND THERE'S A SENSE OF A LACK OF LEADERSHIP IN EUROPE BECAUSE OF IT OVER DINNER ON MONDAY MR KOHL STUNNED MR MITTERRAND AND MOST OTHER EC GOVERNMENTS BY ISSUING A STRONG CALL FOR LIFTING THE INTERNATIONAL ARMS EMBARGO ON BOSNIAN MUSLIMS FRANCE WHICH HAS 5000 TROOPS IN THE REGION AS PART OF A UNITED NATIONS FORCE HOLDS THAT LIFTING THE WEAPONS BAN WOULD ENDANGER ITS TROOPS AND AGGRAVATE THE FIGHTING FRENCH OFFICIALS STILL SHUDDER WHEN TALKING ABOUT THE LAST GERMAN INITIATIVE IN THE YUGOSLAV CRISIS IN DECEMBER 1991 WHEN BONN BULLIED THE EC INTO RECOGNIZING THE SEPARATE YUGOSLAV REPUBLICS FRENCH OFFICIALS BELIEVE THAT MERELY FANNED THE FLAMES OF THE CIVIL WAR BUT AFTER A NIGHT'S REFLECTION MR MITTERRAND WENT OUT OF HIS WAY TO SHOW UNDERSTANDING FOR MR KOHL'S POSITION EVEN THOUGH HE STRONGLY DISAGREED WITH IT FRENCH OFFICIALS QUOTED HIM AS TELLING THE SUMMIT YESTERDAY MORNING THAT THE NATURE OF OUR PRESENCE IN THE FORMER YUGOSLAVIA IS CHANGING HE RAISED THE ISSUE OF WHETHER THE EC SHOULD ESSENTIALLY GIVE UP ITS DIPLOMACY AND LIFT THE ARMS EMBARGO OR WHETHER IT SHOULD DO MORE ON THE GROUND TO PROTECT SAFE AREAS SET ASIDE FOR THE MUSLIMS BUT HE LEFT NO DOUBT THAT WHAT FRANCE PREFERS IS SENDING MORE FOREIGN TROOPS THE MANDATE OF THE FRENCH TROOPS ALREADY IN BOSNIA FOR HUMANITARIAN REASONS COULD BE CHANGED TO TRANSFORM THEM INTO EVENTUAL COMBATANTS MR MITTERRAND SAID URGING HIS PARTNERS TO SEND MORE TROOPS TO HELP THE UN EFFORTS BY MENTIONING MR KOHL'S PROPOSALS IN A FRIENDLY TONE WHILE AT THE SAME TIME PURSUING A DIFFERENT COURSE FRENCH OFFICIALS SAY MR MITTERRAND WAS TRYING TO CALM NERVES JANGLED THE PREVIOUS EVENING IN THE END THE EC SUMMIT ISSUED A DECLARATION ON BOSNIA THAT LARGELY ENDORSED MR MITTERRAND'S POSITION AND STUDIOUSLY AVOIDED ANY MENTION OF MR KOHL'S THE EUROPEAN COUNCIL DECIDED TO RESPOND POSITIVELY TO THE REQUEST OF THE UN SECRETARYGENERAL FOR MEN AND MONEY THE DECLARATION SAID NO DETAILS WERE GIVEN THE FRENCH WERE PARTICULARLY UNHAPPY WITH THE KOHL MOVE ON THE ARMS EMBARGO BECAUSE IT APPEARED TO THEM TO BE A BREACH OF EC SOLIDARITY MR KOHL AT THE SUMMIT BRANDISHED A LETTER FROM PRESIDENT CLINTON THAT DISCUSSED A POSSIBLE LIFTING OF THE WEAPONS BAN NO OTHER EC GOVERNMENT LEADER APPEARED TO HAVE RECEIVED A SIMILAR MISSIVE AND FRENCH OFFICIALS SAID THE US MIGHT BE SEEKING TO DIVIDE GERMANY FROM ITS PARTNERS ON THE ISSUE THE USGERMAN RELATIONSHIP ALSO PLAYS A BIG ROLE IN THE OTHER ISSUE SOURING FRANCOGERMAN RELATIONS GERMANY ITS ECONOMY DEPENDENT ON EXPORTS IS PRESSING FOR A CONCLUSION TO THE URUGUAY ROUND OF THE TRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE BUT FRANCE HAS MISGIVINGS ABOUT ANY AGREEMENT THAT WOULD HARM ITS FARMERS TENSION BUILDING FOR THE PAST SIX WEEKS IT HAS ATTEMPTED TO PERSUADE ITS EC PARTNERS AND THE US THAT ONLY A BALANCED AND GLOBAL AGREEMENT ONE THAT DOESN'T SINGLE OUT AGRICULTURE IS ACCEPTABLE TENSIONS BETWEEN FRANCE AND GERMANY OVER GATT HAVE SIMMERED FOR MONTHS BUT THEY CAME CLOSE TO ERUPTING IN RECENT DAYS AFTER REPORTS THAT GERMANY AND THE US HAD AGREED NOT TO TAKE RETALIATORY TRADE ACTION AGAINST EACH OTHER'S TELECOMMUNICATIONS INDUSTRIES AT THE START OF THE SUMMIT A GERMAN SPOKESMAN TOLD GERMAN REPORTERS FRANCE HAS RECENTLY DROPPED ITS TALK ABOUT THE LACK OF GERMAN LOYALTY TOWARD THE EC BUT WITHIN HOURS FRENCH FOREIGN MINISTER ALAIN JUPPE WAS AGAIN COMPLAINING ABOUT THE USGERMAN ACCORD FRANCE IS ALSO PRESSING THE EC TO ARM ITSELF WITH TOUGHER PROTECTIONIST LEGISLATION IF THE US CONTINUES TO USE ITS OWN TRADERETALIATION WEAPONS BUT GERMANY FIRMLY RULES OUT NEW EC MEASURES FEARING CREEPING PROTECTIONISM IN THE END MR KOHL PAID LIP SERVICE TO THE FRENCH CONCERNS ABOUT ACHIEVING A GLOBAL AGREEMENT THAT DOESN'T JUST DWELL ON AGRICULTURE IN RETURN ANY MENTION OF NEW RETALIATORY TRADE INSTRUMENTS WAS KEPT OUT OF THE FINAL COMMUNIQUE MR MITTERRAND IMMEDIATELY HAILED THE SUMMIT TALKS AS A SIGN THAT GERMANY BACKED FRENCH DEMANDS FOR A RENEGOTIATION OF LAST YEAR'S FARM DEAL A SENIOR GERMAN OFFICIAL REMARKED SINCE THE WAR FRANCE AND GERMANY HAVE HAD SOME DIFFERENCES OVER TRADE BUT THEY HAVEN'T BEEN UNBRIDGEABLE AND WE HOPE THEY AREN'T THIS TIME EITHER 9306230116 930623 WHO'S NEWS SAFECARD SERVICES INC SAFECARD SERVICES INC CHEYENNE WYO WM STALCUP JR 45 YEARS OLD AND GERALD R CAHILL 42 WERE ELECTED TO THE BOARD OF THIS CREDIT CARD SERVICE COMPANY INCREASING THE BOARD'S SIZE TO FIVE MEMBERS MR STALCUP IS PRESIDENT OF THE COMPANY AND MR CAHILL IS CHIEF OPERATING OFFICER 9306230115 930623 BUSINESS BRIEF MICROPROSE INC MERGER PREPARATIONS BEGIN WITH SPECTRUM HOLOBYTE MICROPROSE INC SAID IT RECEIVED 10 MILLION IN FINANCING FROM SPECTRUM HOLOBYTE INC THE FINANCING IS A STEP TOWARD A PLANNED MERGER OF THE ENTERTAINMENTSOFTWARE COMPANIES SPECTRUM ALAMEDA CALIF APPOINTED FOUR MEMBERS TO THE MICROPROSE BOARD REPRESENTING HALF ITS MEMBERS IN ADDITION JOHN W STEALEY SR MICROPROSE COFOUNDER AND PRINCIPAL STOCKHOLDER RESIGNED AS PRESIDENT AND CHIEF EXECUTIVE ALTHOUGH HE WILL REMAIN CHAIRMAN UNTIL THE PROPOSED MERGER IS COMPLETE SPECTRUM SAID IT INTENDS TO APPOINT A REPLACEMENT ACCEPTABLE TO MICROPROSE BASED IN HUNT VALLEY MD THE COMPANIES PLAN TO ENTER A MERGER AGREEMENT BY JULY 15 WITH SPECTRUM OWNING 60 OF MICROPROSE'S SHARES OUTSTANDING IF THE MERGER DOESN'T OCCUR THE 10 MILLION SUBORDINATED NOTE DUE IN 1988 IS CONVERTIBLE INTO MICROPROSE COMMON STOCK 9306230114 930623 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB WITHIN THE NEXT FEW DAYS A CONFIDENTIAL REPORT WILL HIT PRESIDENT CLINTON'S DESK PUSHING HIM TOWARD ONE OF THE TOUGHEST DECISIONS OF HIS YOUNG PRESIDENCY WHETHER TO ORDER NEW MILITARY ACTION AGAINST IRAQ THE REPORT WILL SUMMARIZE THE FEDERAL BUREAU OF INVESTIGATION'S INQUIRY INTO WHETHER IRAQ DISPATCHED A GROUP OF TERRORISTS TO KUWAIT TO TRY TO KILL FORMER PRESIDENT BUSH WHEN HE VISITED THERE IN APRIL US OFFICIALS FAMILIAR WITH THE AFFAIR ASSUME THAT THE FBI LIKE THE KUWAITI GOVERNMENT THAT IS TRYING THE TERRORISTS HAS FOUND SOME CLEAR LINKS BETWEEN THE TERRORISTS AND THE IRAQI GOVERNMENT OF SADDAM HUSSEIN IF SO TOUGH QUESTIONS HAVE TO BE ANSWERED SOON IF IRAQ WAS BEHIND A BUNGLED SLIPSHOD EFFORT TO KILL A FORMER PRESIDENT DOES THAT ALONE CALL FOR A NEW AMERICAN BOMBING RUN AGAINST IRAQ MAYBE NOT BUT IF THAT BUNGLED TERRORIST ACT IS COMBINED WITH OTHER NEW EXAMPLES OF IRAQI MISBEHAVIOR IS THERE A GOOD CASE FOR ACTION PROBABLY SO IN SOME WAYS THE EASY CALL FOR MR CLINTON WOULD BE TO SIMPLY UNLEASH THE BOMBERS SADDAM HUSSEIN HAS BECOME THE MOAMMAR GADHAFI OF THE 1990S A VILLAIN SO WIDELY DESPISED THAT HE IS A POLITICALLY CONVENIENT TARGET THERE ARE FEW ACTIONS AGAINST IRAQ THAT WOULD AROUSE STRONG DOMESTIC OPPOSITION AND LITTLE REASON TO THINK IRAQI AIR DEFENSES YET POSE MUCH OF A DETERRENT IT ALSO SEEMS CLEAR THAT SOME TYPE OF IRAQI CONNECTION TO A PLOT AGAINST MR BUSH CAN BE ESTABLISHED THE TERRORISTS HAVE CONFESSED THAT THEY WERE TRAINED BY IRAQI AGENTS SUCH CONFESSIONS MAY BE SUSPECT BECAUSE THEY COULD HAVE COME UNDER KUWAITI DURESS OF COURSE BUT US OFFICIALS ALSO SAY PRIVATELY THAT THERE IS COMPELLING FORENSIC EVIDENCE MOST IMPORTANT ONE OFFICIAL SAYS THE CAR BOMB FOUND IN KUWAIT IS A VIRTUAL TWIN OF ONE DISCOVERED AND DISARMED ELSEWHERE IN THE MIDDLE EAST DURING OPERATION DESERT STORM THEN TRACED TO IRAQI OPERATIVES STILL THIS IS A MUCH MORE DICEY SITUATION FOR MR CLINTON THAN IT SEEMS FOR STARTERS THERE'S AN IMPORTANT QUESTION OF WHETHER THE TERRORISTS WERE TRAINED IN IRAQ AND THEN LET LOOSE TO GENERALLY WREAK HAVOC OR DISPATCHED SPECIFICALLY TO ASSASSINATE MR BUSH IRAQ IS A PURE POLICE STATE WHERE UNDERLINGS AREN'T EXACTLY PRONE TO INDEPENDENT ACTION SO MOST ANALYSTS ASSUME A LINK TO IRAQI INTELLIGENCE OPERATIVES IS A LINK TO SADDAM'S INNER CIRCLE BUT THAT DOESN'T AUTOMATICALLY TRANSLATE INTO A LINK BETWEEN THE IRAQI LEADER AND A SPECIFIC ACT SO WHETHER THE FBI DRAWS A CLEAR OR A FUZZY LINE BETWEEN SADDAM AND ANY ASSASSINATION PLOT WILL BE CRUCIAL IN DETERMINING HOW MUCH PUBLIC PRESSURE EMERGES FOR REVENGE THERE'S ALSO A MUCH BROADER COMPLICATION AFTER FAILING TO ACTIVELY DEFEND MUSLIMS UNDER SEIGE IN BOSNIA MR CLINTON WILL BE ACCUSED OF A DOUBLE STANDARD IF BOMBS FALL ON IRAQ NOW A CRY WILL INSTANTLY GO UP FROM THE ISLAMIC WORLD THAT THE US WASN'T WILLING TO STOP MUSLIMS FROM BEING SLAUGHTERED IN BOSNIA BUT WAS EAGER TO STRIKE OUT AT THEM IN IRAQ THAT'S ONE REASON MANY ARAB ALLIES WOULD BE HAPPY IF THE US WOULD SIMPLY LET THIS IRAQI PROVOCATION PASS KUWAIT AND NEIGHBORING SAUDI ARABIA PROBABLY WOULD BE HAPPY TO SEE ANOTHER SWIPE TAKEN AT IRAQ BUT SOME OTHER ARABS FRIENDLY TO THE US ARE STARTING TO MUTTER THAT THE IRAQI PEOPLE MAY HAVE SUFFERED ENOUGH THAT SENTIMENT IS FURTHER FUELED BY THE GROWING SENSE BOTH IN THE ARAB WORLD AND THE US THAT IRAN AND NOT IRAQ IS THE REAL LONGTERM REGIONAL THREAT BUT NONE OF THESE COMPLICATIONS ERASES THE FACT THAT THE US CAN'T LET AN ATTEMPT TO KILL A FORMER PRESIDENT GO UNANSWERED AT A MINIMUM THE CLINTON ADMINISTRATION CAN USE ANY EVIDENCE OF AN IRAQI PLOT TO SHORE UP ENFORCEMENT OF UNITED NATIONS ECONOMIC SANCTIONS AGAINST IRAQ AND TO IMMEDIATELY SQUELCH ANY THOUGHTS OF LOOSENING THEM BY HAPPENSTANCE IRAQ IS BUSY RIGHT NOW BOTH IN TALKS WITH THE UN IN GENEVA AND AT A HUMAN RIGHTS CONFERENCE IN VIENNA TRYING TO WRIGGLE OUT OF THE ECONOMIC SANCTIONS AND EARN THE RIGHT TO SELL MORE OF ITS OIL BEYOND THAT IT MAY BE TIME TO START BUILDING A CASE FOR RENEWED MILITARY ACTION AGAINST IRAQ IN WHICH THE PLOT TO KILL MR BUSH COULD BE THE MAIN EXHIBIT THE EXPERIENCE OF THE LAST TWO YEARS SHOWS THAT THE US HAS FAR MORE SUCCESS GENERATING INTERNATIONAL SUPPORT FOR STRIKING IRAQ WHEN IT RESPONDS TO A PATTERN OF IRAQI MISBEHAVIOR RATHER THAN INDIVIDUAL INCIDENTS TYPICALLY SADDAM HUSSEIN IS OPENING HIMSELF UP TO JUST SUCH AN AMERICAN DIPLOMATIC CAMPAIGN RIGHT NOW HE'S JUST REFUSED TO LET UN WEAPONS INSPECTORS INSTALL SURVEILLANCE CAMERAS AT MISSILE TEST SITES IN IRAQ EARNING A STERN WARNING FROM THE SECURITY COUNCIL LAST WEEK THERE'S LITTLE DOUBT THAT SADDAM HUSSEIN WILL CHALLENGE PRESIDENT CLINTON EVENTUALLY IT WOULD BE WISE FOR MR CLINTON TO START LOADING HIS GUN NOW SO THAT HE CAN PULL THE TRIGGER AT A TIME OF HIS CHOOSING 9306230113 930623 WHO'S NEWS AMERICAN MEDICAL HOLDINGS INC AMERICAN MEDICAL HOLDINGS INC DALLAS TERRY LINN 44 YEARS OLD WAS APPOINTED VICE PRESIDENT FOR DEVELOPMENT AT THIS HOSPITAL OPERATING CONCERN MR LINN JOINS THE COMPANY FROM ERNST & YOUNG WHERE HE WAS A PARTNER RESPONSIBLE FOR THE ACCOUNTING FIRM'S HEALTHCARE CONSULTING PRACTICE IN THE SOUTHEASTERN US 9306230112 930623 BUSINESS BRIEF GENESCO INC COMPANY SEES QUARTERLY NET SOMEWHAT BELOW' YEAR AGO GENESCO INC SAID IT EXPECTS EARNINGS IN THE SECOND QUARTER ENDING JULY 31 TO BE SOMEWHAT BELOW THE 16 MILLION OR SEVEN CENTS A SHARE POSTED IN THE YEAREARLIER QUARTER THE NASHVILLE TENN FOOTWEAR AND APPAREL COMPANY ATTRIBUTED THE PROFIT DECLINE TO PRODUCTION PROBLEMS IN MAKING SILK SUITS AND TO ADDITIONAL PROMOTIONAL COSTS FOR SEVERAL NEW FOOTWEAR LINES THE COMPANY IS SPENDING ABOUT 32 MILLION ON ADVERTISING THIS YEAR COMPARED WITH 20 MILLION LAST YEAR A SPOKESWOMAN SAID WE EXPECT BOTH FOOTWEAR RETAILING AND WHOLESALING TO SEE STRONG SALES GROWTH IN THE SECOND HALF OF THE YEAR SAID E DOUGLAS GRINDSTAFF CHIEF EXECUTIVE OFFICER HE SAID THE COMPANY EXPECTS TO RESOLVE ITS SUITPRODUCTION PROBLEMS SOON 9306230111 930623 DETROIT MAYOR YOUNG SAYS HE WON'T SEEK SIXTH TERM DETROIT COLEMAN A YOUNG 75 YEARS OLD SAID 20 YEARS IS ENOUGH AND THAT HE WON'T SEEK A SIXTH FOURYEAR TERM AS MAYOR OF THE NATION'S SEVENTHLARGEST CITY MR YOUNG MADE HIS ANNOUNCEMENT YESTERDAY THE LAST DAY HE COULD CAST HIS HAT IN THE MAYORAL RACE MR YOUNG DIDN'T ENDORSE ANY OF THE ANNOUNCED CANDIDATES HIS ANNOUNCEMENT ENDED WEEKS OF SPECULATION OF WHETHER HE WOULD RUN AGAIN BUT MANY POLITICAL OBSERVERS BELIEVED HIS DETERIORATING HEALTH WAS A BIG FACTOR PREVENTING MR YOUNG FROM RUNNING AGAIN THE MAYOR HAS BEEN ILL IN RECENT MONTHS WITH EMPHYSEMA AND HAS CUT BACK ON PUBLIC APPEARANCES I HAVE NOT BEEN ABLE TO PUT OUT THE EFFORT IN THE LAST YEAR IN THE MANNER THAT I HAVE BEEN ABLE TO IN THE PREVIOUS 19 YEARS MR YOUNG SAID SHOULD I WIN ANOTHER TERM I DO NOT THINK I COULD PUT AS MUCH INTO THE JOB 9306230110 930623 WHO'S NEWS PRUDENTIAL INSURANCE SELECTS ROPER TO HEAD HEALTHCARE RESEARCH CENTER BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL PRUDENTIAL INSURANCE CO OF AMERICA SAID IT NAMED WILLIAM L ROPER DIRECTOR OF THE US CENTERS FOR DISEASE CONTROL AND PREVENTION TO HEAD A NEW CENTER FOR HEALTHCARE RESEARCH THE CENTER WILL CONDUCT RESEARCH AIMED AT EVALUATING AND IMPROVING THE CARE DELIVERED TO 35 MILLION PEOPLE WHO ARE ENROLLED IN THE INSURER'S MANAGEDCARE PLANS THE CENTER IS THE LATEST IN A RECENT FLURRY OF QUALITY INITIATIVES THAT AMONG OTHER THINGS ARE INTENDED TO PROVIDE CONSUMERS WITH INFORMATION ON THE PERFORMANCE OF HEALTH PLANS AND TO HOLD DOCTORS AND HOSPITALS ACCOUNTABLE FOR THE QUALITY OF CARE THEY DELIVER A GROWING NUMBER OF EMPLOYERS ARE ALREADY DEMANDING MORE ACCOUNTABILITY FROM THEIR HEALTH PLANS THE CLINTON ADMINISTRATION HAS INDICATED THAT REPORT CARDS ON THE PERFORMANCE OF HEALTH PROVIDERS WILL BE AN IMPORTANT FEATURE OF ITS PROGRAM TO OVERHAUL HEALTH CARE WE'RE MOVING FROM NO ACCOUNTABILITY IN HEALTH CARE TO THIS RUSH TO ACCOUNTABILITY SAID CAROL CRONIN EXECUTIVE DIRECTOR OF THE MANAGED HEALTH CARE ASSOCIATION WASHINGTON IT'S A SIGN OF HOW THINGS ARE CHANGING DR ROPER 44 YEARS OLD HAS SERVED IN SEVERAL TOP HEALTH POSITIONS IN BOTH THE REAGAN AND BUSH ADMINISTRATIONS INCLUDING HEAD OF THE HEALTH CARE FINANCING ADMINISTRATION WHICH OVERSEES THE MEDICARE AND MEDICAID PROGRAMS HE WASN'T EXPECTED TO BE REAPPOINTED BY PRESIDENT CLINTON AND IN MARCH ANNOUNCED HIS INTENTION TO RESIGN FROM THE CDC THIS MONTH IN GOVERNMENT DR ROPER HAS BEEN AN ADVOCATE OF EFFORTS TO EVALUATE AND IMPROVE MEDICAL PRACTICE IN 1988 HE WAS THE PRINCIPAL AUTHOR OF A PAPER KNOWN AS THE HEALTH EFFECTIVENESS INITIATIVE PUBLISHED IN THE NEW ENGLAND JOURNAL OF MEDICINE THAT HELPED MOBILIZE THE BURGEONING RESEARCH EFFORT INTO THE OUTCOMES OF MEDICAL CARE IN HIS NEW POST IN THE PRIVATE SECTOR DR ROPER WILL TRY TO HELP IMPROVE KNOWLEDGE ABOUT THE PRACTICE OF MEDICINE AND THAT'S A PUBLIC DOMAIN COMMODITY THAT SHOULD BE FREELY AVAILABLE TO EVERYONE HE SAID IN AN INTERVIEW AT THE SAME TIME THE RESEARCH CENTER WILL BE DEVELOPING INSTRUMENTS TO EVALUATE PROVIDERS AND DESIGN COSTEFFECTIVE HEALTH PROGRAMS THAT PRUDENTIAL WILL USE TO COMPETE FOR THE BUSINESS OF HEALTHCARE BUYERS INCLUDING BIG PURCHASING ALLIANCES THAT WOULD BUY CARE FOR MILLIONS OF AMERICANS UNDER THE ANTICIPATED CLINTON HEALTH PLAN DR ROPER SAID HE EXPECTS A SCIENTIFIC ADVISORY BOARD WILL BE APPOINTED TO HELP THE CENTER DEVELOP DATA THAT IS USEFUL AND CREDIBLE PRUDENTIAL A NEWARK NJ CONCERN SAID IT PLANS TO INVEST 20 MILLION OVER THE NEXT FEW YEARS IN THE RESEARCH CENTER OTHER SIMILAR INITIATIVES ARE UNDER WAY FOR EXAMPLE UNITED HEALTHCARE CORP A MANAGEDHEALTHCARE COMPANY IN MINNEAPOLIS ESTABLISHED ITS CENTER TWO YEARS AGO AND EARLY THIS YEAR PRODUCED PROTOTYPE REPORT CARDS TO MEASURE THE PERFORMANCE OF ITS HEALTH MAINTENANCE ORGANIZATIONS 9306230109 930623 HEALTH PASSIVESMOKE RULING SPARKS INDUSTRY SUIT BY EBEN SHAPIRO STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE NATION'S TWO BIGGEST TOBACCO COMPANIES FILED A FEDERAL LAWSUIT AGAINST THE ENVIRONMENTAL PROTECTION AGENCY FOR RULING THAT SECONDHAND CIGARETTE SMOKE CAUSES LUNG CANCER SEEKING TO HAVE THE REPORT DECLARED NULL AND VOID PHILIP MORRIS COS AND RJR NABISCO HOLDINGS CORP JOINED FOUR ALLIES IN FILING THE SUIT IN NORTH CAROLINA THEY SEEK A PERMANENT INJUNCTION OVERTURNING THE EPA FINDINGS AND CONTEND THAT THE AGENCY RESORTED TO MANIPULATING AND CHERRYPICKING DATA TO FALSELY DISPARAGE CIGARETTES THE AGGRESSIVE ATTACK ON THE EPA UNDERSCORES THE DAMAGE THAT THE REPORT ON SECONDHAND SMOKE HAS INFLICTED ON THE TOBACCO INDUSTRY SINCE ITS RELEASE JAN 7 THE REPORT PUBLISHED AFTER SEVERAL YEARS OF FIERCE RESISTANCE FROM THE TOBACCO INDUSTRY DOESN'T MANDATE ANY PARTICULAR ACTION BUT IT HAS BEEN A POWERFUL TOOL IN PRODDING BUSINESSES RESTAURANTS LOCAL GOVERNMENTS AND EVEN SPORTS STADIUMS ACROSS THE COUNTRY TO BAN OR SEVERELY RESTRICT SMOKING TO AVOID LIABILITY FOR SUBJECTING PEOPLE TO SECONDHAND SMOKE EARLIER THIS MONTH THE US POSTAL SERVICE OUTLAWED SMOKING AT ALL OF ITS FACILITIES CITING THE EPA REPORT NEXT TO THE SURGEON'S GENERAL REPORT IN 1964 THE EPA REPORT IS PROBABLY THE MOST IMPORTANT FINDING THAT THE FEDERAL GOVERNMENT HAS HAD ON THE ADVERSE HEALTH EFFECTS OF TOBACCO SAID GREGORY CONNOLLY AN OFFICIAL WITH THE MASSACHUSETTS DEPARTMENT OF PUBLIC HEALTH STEVE PARRISH SENIOR VICE PRESIDENT AND GENERAL COUNSEL OF PHILIP MORRIS CONCEDED THAT THE EPA FINDING HAS BEEN HARMFUL TO THE INDUSTRY IN A BUSINESS SENSE BUT HE WENT ON TO CALL THE SECONDHANDSMOKE FINDINGS AMONG THE MOST FLAWED EVER ISSUED BY THE AGENCY AND CHARGED THAT THE EPA REFUSED TO INCLUDE TWO MAJOR STUDIES THAT WOULD HAVE NEGATED THE FINDINGS IN A STATEMENT CAROL BROWNER ADMINISTRATOR OF THE EPA SAID THE AGENCY'S VIEW IS THAT SECONDHAND TOBACCO SMOKE CAN CAUSE CANCER THIS ASSESSMENT IS BASED ON SCIENTIFIC EVIDENCE THAT HAS BEEN THOROUGHLY PEERREVIEWED AND WE STAND BY IT ANTISMOKING ACTIVISTS RIDICULED THE TOBACCO FORCES' LAWSUIT REFLECTING THE WIDESPREAD VIEW THAT THE CIGARETTE INDUSTRY HAS LITTLE CREDIBILITY ON HEALTH ISSUES BECAUSE IT STEADFASTLY REFUSES TO ACKNOWLEDGE THAT SMOKING CAUSES LUNG CANCER IT'S LIKE THE FLAT EARTH SOCIETY SUING NASA FOR PUBLISHING PHOTOGRAPHS SHOWING THAT THE EARTH IS ROUND SAID CLIFF DOUGLAS TOBACCOPOLICY DIRECTOR FOR THE ADVOCACY INSTITUTE A NONPROFIT GROUP FOCUSING ON HEALTH AND SAFETY ISSUES STILL THERE WAS CONCERN THAT THE LAWSUIT WOULD SLOW THE TIDE OF SMOKING RESTRICTIONS BY RAISING QUESTIONS ABOUT THE VALIDITY OF THE STUDY THEY ARE MASTERS OF CREATING SCIENTIFIC CONTROVERSY WHERE THERE IS NONE SAID DR CONNOLLY OF THE MASSACHUSETTS HEALTH DEPARTMENT THE TOBACCO PLAINTIFFS MAINTAIN IN THEIR EPA SUIT THAT THE AGENCY BURIED CONTRADICTORY RESEARCH BUT ONE STUDY THE TOBACCO COMPANIES CITE ACTUALLY APPEARS TO SUPPORT THE EPA'S DECISION THE REPORT FROM THE AMERICAN JOURNAL OF PUBLIC HEALTH WHICH WAS INCLUDED IN A PRESS PACKET PUBLICIZING THE LAWSUIT CONCLUDES THAT THERE IS A SMALL BUT CONSISTENT ELEVATION IN THE RISK OF LUNG CANCER IN NONSMOKERS DUE TO PASSIVE SMOKING AND THE STUDY ADDS THE PROLIFERATION OF FEDERAL STATE AND LOCAL REGULATIONS THAT RESTRICT SMOKING IN PUBLIC PLACES AND WORK SITES IS WELLFOUNDED MANY ANTISMOKING ACTIVISTS SAID THE LAWSUIT MAY ONLY REFOCUS ATTENTION ON THE HAZARDS OF SECONDHAND SMOKE AND INVITE FURTHER INCREASES IN FEDERAL CIGARETTE TAXES THE ADMINISTRATION WILL SEE IT AS A REMINDER OF JUST HOW BRAZEN THESE FOLKS ARE CONTENDED RICHARD DAYNARD A LAW PROFESSOR AT NORTHEASTERN UNIVERSITY WHO HEADS THE TOBACCO PRODUCTS LIABILITY PROJECT THE LAWSUIT WAS FILED BY AN UNUSUAL COALITION THAT INCLUDES BITTER RIVALS PHILIP MORRIS AND RJR'S RJ REYNOLDS TOBACCO CO UNIT TWO ORGANIZATIONS REPRESENTING TOBACCO GROWERS GALLINS VENDING CO A CIGARETTEVENDINGMACHINE COMPANY AND UNIVERSAL LEAF TOBACCO CO A TOBACCO SUPPLIER BUT EVEN THE TOBACCO PLAINTIFFS ARE HESITANT TO DEBUNK EVERY ASPECT OF THE EPA REPORT THE AGENCY CONCLUDED THAT PASSIVE SMOKE IS RESPONSIBLE FOR ABOUT 3000 LUNGCANCER DEATHS EACH YEAR IN THE US WHICH TOBACCO COMPANIES STRENUOUSLY DENY BUT THE EPA ALSO MAINTAINS THAT SECONDHAND SMOKE CAN CAUSE PNEUMONIA IN YOUNG CHILDREN AND THAT IT AGGRAVATES CHILDHOOD ASTHMA ASKED WHETHER THE TOBACCO INDUSTRY DISPUTES THE EPA'S FINDING ABOUT HARM TO CHILDREN MR PARRISH OF PHILIP MORRIS SAID I'M NOT SAYING PEOPLE SHOULD BLOW SMOKE IN THE FACES OF THEIR CHILDREN PEOPLE SHOULD USE SOME COMMON SENSE TIMOTHY NOAH IN WASHINGTON CONTRIBUTED TO THIS ARTICLE 9306230108 930623 FINANCING BUSINESS MERIDIAN DIAGNOSTICS INC MERIDIAN DIAGNOSTICS INC CINCINNATI SAID IT REGISTERED THE PROPOSED OFFERING OF TWO MILLION COMMON SHARES THE MAKER OF IMMUNODIAGNOSTIC TEST KITS SAID IT WILL SELL ONE MILLION OF THE SHARES AND THE REMAINING STOCK WILL BE SOLD BY CERTAIN SHAREHOLDERS LEAD UNDERWRITER IS PRUDENTIAL SECURITIES INC NEW YORK MERIDIAN SAID IT AND THE SELLING SHAREHOLDERS WILL GRANT TO UNDERWRITERS AN OPTION TO PURCHASE 300000 ADDITIONAL COMMON SHARES TO COVER OVERALLOTMENTS THE COMPANY CURRENTLY HAS 7706702 COMMON SHARES OUTSTANDING 9306230107 930623 CORPORATE FOCUS SAAB AUTOMOBILE'S FUTURE MAY DEPEND ON NEW MODEL BIG HIT IS NEEDED TO ENSURE CONTINUED SUPPORT FROM PARENT COMPANIES BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL TROLLHAETTAN SWEDEN FOR THE EMBATTLED SWEDISH AUTO MAKER SAAB AUTOMOBILE AB THE MOMENT OF TRUTH FINALLY HAS ARRIVED NEXT MONTH SAAB WILL LAY ITS FUTURE ON THE LINE BY UNVEILING ITS FIRST COMPLETELY NEW CAR IN NEARLY A DECADE THE LONGAWAITED SUCCESSOR TO THE VENERABLE SAAB 900 ALSO WILL BE THE FIRST NEW MODEL SINCE GENERAL MOTORS CORP BOUGHT 50 OF THE FORMER SAABSCANIA AB CAR DIVISION IN JANUARY 1990 WITHOUT GM AND ITS DEEP POCKETS SAAB PROBABLY WOULDN'T HAVE GOTTEN THIS FAR PRETAX LOSSES DURING THE PAST THREE YEARS REACHED A STAGGERING 96 BILLION SWEDISH KRONOR 127 BILLION TO KEEP SAAB AFLOAT LONG ENOUGH TO FINISH WORK ON THE NEW 900 GM AND SAABSCANIA RUSHED IN REFINANCING TOTALING 83 BILLION KRONOR UNLESS THE NEW 900 IS A BIG HIT INDUSTRY ANALYSTS WARN THE OWNERS LIKELY WOULD BALK AT PUMPING IN ANY MORE MONEY GM PROBABLY WOULD INHERIT THE SAAB BRAND BUT SHIFT PRODUCTION AND MODEL DEVELOPMENT FROM SWEDEN TO ITS OWN PLANTS ELSEWHERE AROUND EUROPE A BIG CAR COMPANY CAN TAKE A FAILURE OR TWO MUSES JOHN FLEMING A VETERAN GM EXECUTIVE INSTALLED THREE MONTHS AGO AS SAAB'S MARKETING DIRECTOR BUT WE CAN'T STAND A FAILURE HERE EVERYBODY KNOWS THE NEW 900 ABSOLUTELY HAS TO BE A SUCCESS GM SNAPPED UP SAAB AS A PRIZED PREMIUM MARQUE IN EUROPE AND PLEDGED TO EXPAND THE EXISTING SAAB RANGE WITH LUXURIOUS PRICIER MODELS BUT WITH GLOBAL CAR MARKETS IN FREE FALL THOSE INITIAL AMBITIONS HAVE BEEN SCALED BACK IT IS NOW CLEAR THAT AN ULTRAEXCLUSIVE SAAB MODEL WON'T APPEAR BEFORE 1995 AND WHILE COMPANY OFFICIALS ONCE TALKED OF DOUBLING PRODUCTION CAPACITY TO MORE THAN 350000 CARS A YEAR BY THE END OF THE DECADE SAAB'S CURRENT CHIEF EXECUTIVE KEITH BUTLERWHEELHOUSE HAS MORE MODEST AMBITIONS GETTING ANNUAL SALES BACK ABOVE 100000 CARS FROM SLIGHTLY UNDER 80000 THIS YEAR OVER THE LONGER TERM WE'RE LOOKING FOR RELATIVELY FEW EXTRA VEHICLES TO MAKE THIS INTO A WHIZBANG OF A BUSINESS AND NOW THAT WE'VE GOT NEW PRODUCT IT'S OUR CHANCE TO SELL SIGNIFICANTLY MORE THAN OUR BREAKEVEN LEVEL FOR NEXT YEAR MR BUTLERWHEELHOUSE SAYS BUT IT'S GOING TO BE VERY TOUGH I DON'T SEE THE MARKET SAVING THIS INDUSTRY ANYTIME SOON FOR ALL THIS SAAB IS A VASTLY MORE EFFICIENT COMPANY TODAY COMPARED WITH ITS FINAL FOUNDERING DAYS AS AN INDEPENDENT AUTO MAKER NEW MANAGEMENT RECRUITED MAINLY FROM GM HAS SLASHED COSTS WITH A FLURRY OF OVERDUE UNPOPULAR MEASURESFROM LAYING OFF NEARLY HALF THE COMPANY'S WORK FORCE TO CLOSING A HEAVILY STATESUBSIDIZED EXPERIMENTAL CAR FACTORY LESS THAN TWO YEARS AFTER IT HAD OPENED SUCH COSTCUTTING MEASURES HAVE HELPED LOWER SAAB'S BREAKEVEN POINT TO ABOUT 85000 CARS A YEAR FROM WELL OVER 100000 CARS A YEAR IN PREGM DAYS IN THIS YEAR'S FIRST QUARTER SAAB'S PRETAX LOSS NARROWED TO 138 MILLION KRONOR FROM 293 MILLION KRONOR A YEAR EARLIER MR BUTLERWHEELHOUSE PREDICTS RAPID IMPROVEMENT WILL CONTINUE BECAUSE WE STILL HAVEN'T GOTTEN THE FULL EFFECT OF A LOT OF THE COSTS WE'VE TAKEN OUT SALES OF SAABS TUMBLED 17 IN THE QUARTER TO ONLY 17600 CARS FROM 21300 A YEAR EARLIER MR FLEMING THE MARKETING DIRECTOR INSISTS MUCH OF THE DROP WAS DUE TO THE RUN OUT OF THE OLD 900 WHICH IS OUT OF STOCK IN MOST MAJOR MARKETS WE SHOULD SEE SUBSTANTIAL IMPROVEMENT IN THE SECOND HALF OF THE YEAR AS WE ACCELERATE PRODUCTION OF THE NEW 900 AND THE FULL YEAR SALES DECLINE WILL BE MODEST ASSUMING OF COURSE THAT WE CAN MEET PRODUCTION TARGETS FOR THE NEW MODEL SAAB OFFICIALS SAY CHANCES OF HITTING THOSE TARGETS ARE GOOD JUDGING FROM RESULTS OF PILOT PRODUCTION OF THE NEW CAR IN RECENT WEEKS INDEED MANUFACTURING PRODUCTIVITY IS PERHAPS THE BEST GAUGE OF SAAB'S IMPROVING HEALTH PRODUCTION TIME PER CAR HAS PLUNGED TO ABOUT 55 HOURS TODAY FROM MORE THAN 120 HOURS THREE YEARS AGO THE MODERN DESIGN OF THE NEW 900 WILL PRODUCE FURTHER GAINS MR BUTLERWHEELHOUSE ESTIMATES THAT ON AVERAGE NEW 900S WILL TAKE ABOUT 38 HOURS TO PRODUCE WITH SOME MODELS DIPPING AS LOW AS 30 HOURS SAAB EXECUTIVES DECLINE TO DISCLOSE THE COST OF DEVELOPING THE NEW 900 PENDING THE CAR'S OFFICIAL DEBUT HERE JULY 21 BUT INDUSTRY SOURCES ESTIMATE SAAB PROBABLY SPENT LESS THAN 1 BILLION ON THE PROJECT A FRACTION OF THE 16 BILLION KRONOR ARCHRIVAL AB VOLVO POURED INTO DEVELOPMENT OF ITS NEW 850 MODEL INTRODUCED TWO YEARS AGO MR BUTLERWHEELHOUSE READILY CONFIRMS THAT COOPERATION WITH GM SHORTENED DEVELOPMENT TIME OF THE NEW MODEL TO 35 YEARS FROM THE MINIMUM FIVE YEARS SAAB ENGINEERS WOULD HAVE NEEDED STARTING FROM SCRATCH THE NEW 900 FOR EXAMPLE IS BASED ON THE SAME PLATFORM USED BY GM FOR CERTAIN CALIBRA MODELS SOLD IN EUROPE IT'S THE THINGS CUSTOMERS DON'T SEE SUCH AS BRAKE SYSTEMS PARTS OF THE CHASSIS AND CRASH TESTING THAT COST A LOT TO DESIGN AND DEVELOP THE SAAB CHIEF SAYS AND STARTING WITH A PLATFORM THAT'S ALREADY RUNNING PROBABLY SAVES YOU ABOUT 612 MONTHS MEANWHILE MANY INDUSTRY ANALYSTS FRETTED THAT GM WOULD MEDDLE IN NEW MODEL DEVELOPMENT SPOILING THE QUIRKY STYLING AND ENGINEERING PROWESS THAT HAVE ALWAYS BEEN SAAB HALLMARKS CUSTOMERS OF COURSE WILL MAKE UP THEIR OWN MINDS ABOUT THE NEW CAR'S HERITAGE STIGGOERAN LARSSON HEAD OF SAAB'S PRODUCT DEVELOPMENT RECOUNTS HOW GM BRASS INCLUDING CURRENT GM EUROPE PRESIDENT LOUIS R HUGHES AVIDLY JOINED CLANDESTINE ROAD TESTS OF 900 PROTOTYPES IN BOTH EUROPE AND THE US BUT THEY DIDN'T PUT ANY PRESSURE ON US THE GOATEED ENGINEER SAYS WE KNOW WHAT OUR CUSTOMERS WANT AND THE NEW 900 IS A REAL SAAB EVEN IF SOME PEOPLE SAY IT'S UGLY PRICING IS ANOTHER AREA WHERE SAAB EXECUTIVES PLAN TO EMPHASIZE CONTINUITY WITHOUT DIVULGING EXACT PRICES MR BUTLERWHEELHOUSE PROMISES THAT THE NEW 900S WILL BE PRICED QUITE CLOSE TO EXISTING MODELS WHEN THEY REACH EUROPEAN DEALER SHOWROOMS IN SEPTEMBER AND THE US A MONTH LATER IN THE US PRESENT 900 MODELS COST FROM 21400 TO 31000 INDEED WITH THE PREMIUM CAR MARKET SEGMENT MORE CROWDED THAN EVER FIERCE BRAND LOYALTY AMONG CURRENT OWNERS PROMISES TO BE ONE OF SAAB'S MOST POTENT MARKETING WEAPONS WE WANT THE NEW 900 TO APPEAL TO THE SAME PEOPLE WHO HAVE BEEN BUYING THE OLD ONE MR FLEMING SAYS THEY SHOULD COME IN AND SEE THE NEW CAR IS A GENUINE SAAB MAYBE A BIT MORE EXPENSIVE THAN THE ONE THEY BOUGHT A FEW YEARS AGO BUT STILL IN THE RIGHT RELATIONSHIP TO OTHER CARS THEY MIGHT CONSIDER 9306230106 930623 WHO'S NEWS BELMAC CORP BELMAC CORP TAMPA FLA DR THOMAS G DAVIS RESIGNED AS A DIRECTOR OF THIS PHARMACEUTICAL COMPANY THE COMPANY SAID MR DAVIS 65 YEARS OLD IS RELOCATING TO ENGLAND TO BECOME MANAGING DIRECTOR OF QUADRANT HOLDING AND WON'T HAVE TIME TO SERVE AS A BELMAC DIRECTOR THE COMPANY HASN'T NAMED A SUCCESSOR 9306230105 930623 CREDIT MARKETS TREASURY BOND PRICES END DAY LITTLE CHANGED DESPITE FIRM DEMAND AT 2YEAR NOTE AUCTION BY GENE COLTER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TREASURY PRICES WERE LITTLE CHANGED DESPITE RELATIVELY STRONG DEMAND AT A GOVERNMENT AUCTION OF 16 BILLION OF TWOYEAR NOTES THE STRONG DEMAND AT THE AUCTION WAS A SIGN THAT MANY INVESTORS AREN'T TOO WORRIED THAT THE FEDERAL RESERVE WILL MOVE TO RAISE SHORTTERM INTEREST RATES DESPITE THE UNEXPECTEDLY WARM RECEPTION NOTE AND BOND PRICES HAVEN'T BUDGED MUCH FROM NARROW TRADING RANGES NOR ARE THEY EXPECTED TO BEFORE JUNE'S ECONOMIC SCENARIO STARTS TO UNFOLD THE FIRST AND MOST IMPORTANT INDICATOR JUNE EMPLOYMENT ISN'T DUE TO BE RELEASED UNTIL JULY 2 THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/8 POINT OR LESS THAN 125 FOR A BOND WITH 1000 FACE VALUE TO 104 14/32 TO YIELD 677 DOWN FROM 678 ON MONDAY THE 10YEAR NOTE ROSE 1/8 POINT TO 102 18/32 TO YIELD 589 DOWN FROM 591 THE TREASURY SOLD THE TWOYEAR NOTES UNDER DUTCH AUCTION RULES WITH A COUPON OF 4125 TO YIELD 416 DOWN FROM 417 AT THE MAY AUCTION IN A DUTCH AUCTION ALL SECURITIES ARE AWARDED AT THE HIGHEST ACCEPTED RATE THE MEDIAN BID WAS 414 INDICATING THAT 50 OF ACCEPTED COMPETITIVE BIDS WERE TENDERED AT OR BELOW THAT RATE NONCOMPETITIVE BIDS FROM INDIVIDUAL INVESTORS TOTALED 858 MILLION UP FROM 769 MILLION AT THE MAY AUCTION ROBERT DEDERICK NORTHERN TRUST CO CHIEF ECONOMIST SAID FEARS OF FED TIGHTENING BEING JUST AROUND THE CORNER SEEM TO HAVE EBBED AND MEANWHILE THERE'S MONEY THERE TO BE SPENT BY INVESTORS THE TWOYEAR NOTE YIELD WHILE RELATIVELY LOW WAS STILL 116 PERCENTAGE POINTS ABOVE THE 3 FEDERAL FUNDS RATE TARGET OBSERVED TRADERS ALTHOUGH THERE'S PROBABLY NOT A LOT OF TRADING PROFIT IN IT THERE'S NOT A LOT OF TRADING RISK EITHER ONE SAID THE FED FUNDS RATE IS THE RATE CHARGED BY BANKS FOR OVERNIGHT LOANS NEEDED TO MEET RESERVE REQUIREMENTS IN JUNE 1992 THE TREASURY SOLD 15 BILLION TWOYEAR NOTES AT 511 DEMAND FOR THE NEW TWOYEAR NOTES WAS STRONG ENOUGH TO PULL THE YIELD DOWN TO 414 IN WHENISSUED TRADING LATE YESTERDAY IT WAS A VERY SOLID AUCTION SURPRISINGLY SO IN AN ENVIRONMENT IN WHICH PEOPLE ARE DEFENSIVE AMID LINGERING CONCERNS THAT THE FED WILL EVENTUALLY TIGHTEN POLICY SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS INC BUYERS WERE MOSTLY BANKS AND SOME INCREASINGLY DEFENSIVE PORTFOLIOS THAT WANT TO SHORTEN DURATION HE ADDS BUT IT'S BY DEFAULT RIGHT NOW THAT THE TWOYEAR APPEARS REASONABLY APPEALING SOME PEOPLE HESITATE TO MAKE A STRONG BULLISH STATEMENT BY BUYING LONGTERM SECURITIES ATTENTION NOW SHIFTS TO TODAY'S SALE OF 11 BILLION OF FIVEYEAR TREASURY NOTES THE FIVEYEAR NOTES YIELDED 518 LATE YESTERDAY IN WHENISSUED TRADING DOWN FROM 520 LATE MONDAY BUT MARKET ANALYSTS SAID THE FIVEYEAR NOTE AUCTION MAY ATTRACT EVEN STRONGER DEMAND THE FIVEYEAR IS SEEN AS A STRONGER AREA OF THE YIELD CURVE A BETTER PLACE TO BE SAID DOUGLAS SCHINDEWOLF VICE PRESIDENT AND MONEY MARKET ECONOMIST AT SMITH BARNEY HARRIS UPHAM & CO THAT SECTOR HAS THE BENEFIT OF MUNICIPAL DEFEASANCE AND BOND FUND BUYING AND IT SEEMS TO BE IMMUNE FROM THE TREASURY'S DEBT MIX SHIFT HE ADDS THE ONLY ECONOMIC NEWS WAS THE 01 RISE IN THE JOHNSON REDBOOK NATIONAL RETAIL SALES REPORT FOR THE THREE WEEKS ENDED JUNE 19 JOHNSON REDBOOK SERVICE IS A DIVISION OF LYNCH JONES & RYAN INC MARKET REPONSE WAS NEGLIGIBLE WE'RE HUNG UP WAITING FOR SOMETHING TO HAPPEN AND THAT PROBABLY MEANS A STANDSTILL UNTIL THE JULY 2 EMPLOYMENT REPORT SAID MR DEDERICK THAT'S THE ONE THAT TELLS YOU WHETHER TO SIT UP STEP DOWN OR JUST LIE THERE HERE ARE THE RESULTS OF YESTERDAY'S TWOYEAR NOTE AUCTION ALL BIDS ARE AWARDED AT A SINGLE PRICE AT THE MARKETCLEARING YIELD RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THAT PRICE AND THE FACE VALUE THE NOTES ARE DATED JUNE 30 AND MATURE JUNE 30 1995 THANKS TO CONTINUED STRONG DEMAND IN THE MUNICIPAL SECURITIES MARKET THERE WERE WARM RECEPTIONS FOR A NUMBER OF NEW ISSUES AND GENERAL GAINS OF 1/8 TO 1/4 POINT FOR ACTIVELY TRADED BONDS ONE OF THE SUCCESSES IN THE NEWISSUE MARKET WAS THE PRICING OF THE NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY'S 375 MILLION BOND ANTICIPATION NOTES THE OFFERING WAS THE LARGEST TO DATE FOR SENIOR MANAGER WR LAZARD LAIDLAW & MEAD INC A MINORITYOWNED FIRM THE OFFERING WAS A SELLOUT SAID RICHARD VISCONTI MANAGER OF MUNICIPAL UNDERWRITING AND TRADING AT THE FIRM THERE WERE ABOUT 400 MILLION OF ORDERS FOR THE NOTES THAT PRIMARILY CAME FROM INSTITUTIONS HE NOTED MR VISCONTI PARTLY ATTRIBUTED THE BUYING INTEREST TO LIGHT ISSUANCE OF SHORTTERM NEW YORK CITY SECURITIES THIS YEAR WHICH APPARENTLY HAS KINDLED PENTUP DEMAND THE NOTES MATURE ON APRIL 15 1994 CARRY A 275 COUPON AND ARE PRICED TO YIELD 240 THE ISSUE WHICH IS FOR THE CITY'S WATER AND SEWER SYSTEM HAS BEEN RATED MIG1 BY MOODY'S INVESTORS SERVICE INC AND SP1 BY STANDARD & POOR'S CORP THE DAY'S BIGGEST ISSUE WAS LOS ANGELES COUNTY'S 15 BILLION 199394 FIXEDRATE TAX AND REVENUE ANTICIPATION NOTES WHICH WERE PRICED BY A LEHMAN BROTHERS GROUP LOS ANGELES IS ONE OF THE MANY CALIFORNIA COUNTIES THAT HAVE COME TO THE MARKET IN THE LAST FEW WEEKS TO BORROW FUNDS BEFORE THE START OF THE STATE'S 1994 FISCAL YEAR ON JULY 1 THE NOTES ARE DUE JUNE 30 1994 THEY HAVE A 300 COUPON AND ARE PRICED AT 100437 TO YIELD 255 THEY HAVE BEEN RATED MIG1 BY MOODY'S SP1PLUS BY S&P AND F1PLUS BY FITCH INVESTORS SERVICE INC ALTHOUGH THERE WAS BOTH INSTITUTIONAL AND RETAIL DEMAND FOR THE NOTES AN UNSOLD BALANCE REMAINED TUESDAY AFTERNOON A LEHMAN BROTHERS NOTE SPECIALIST SAID AMONG THE OTHER ISSUES PRICED YESTERDAY WERE SEATTLE'S 4526 MILLION 1993 MUNICIPAL LIGHT AND POWER BONDS AND THE PORT AUTHORITY OF NEW YORK & NEW JERSEY'S 1499 MILLION CONSOLIDATED BONDS THE SEATTLE ISSUE WAS PRICED BY A LEHMAN BROTHERS GROUP AND THE PORT AUTHORITY OFFERING WAS BROUGHT TO THE MARKET BY A PRUDENTIAL SECURITIES INC GROUP DUE TO STRONG DEMAND UNDERWRITERS WERE ABLE TO REPRICE BOTH ISSUES AND LOWER YIELDS BY 005 PERCENTAGE POINT OR MORE FOLLOWING THOSE REPRICINGS THE SEATTLE ISSUE WAS PRICED TO YIELD FROM 255 FOR NOTES MATURING IN 1994 TO 570 FOR BONDS MATURING IN 2018 THE PORT AUTHORITY BONDS WERE PRICED TO YIELD FROM 240 FOR NOTES MATURING IN 1994 TO 530 FOR NOTES MATURING IN 2011 AND 2012 PRESSURE ON UNDERWRITERS TO REDUCE INVENTORY BEFORE THE END OF THE QUARTER MUTED NEW BOND ISSUANCE AND COULD SLOW ACTIVITY FOR THE REST OF THE WEEK BUT COMPANIES THAT DID PRICE ISSUES FOUND STRONG DEMAND THEY INCLUDED BREWER ANHEUSERBUSCH COS WHOSE 200 MILLION OF 30YEAR DEBENTURES WERE PRICED AT 99188 TO YIELD 7443 A 200 MILLION SENIOR NOTE ISSUE FOR INFORMATION TECHNOLOGY PROVIDER EQUIFAX INC WAS PRICED AT 9949 TO YIELD 657 AND SOLD OUT INTERNATIONAL LEASE FINANCE CORP'S 100 MILLION OF FIVEYEAR NOTES WERE PRICED AT 9975 TO YIELD 5808 IN THE HIGHYIELD SECTOR BONDS OF UNISYS CORP FIRMED ABOUT 1/2 POINT FOLLOWING STANDARD & POOR'S CORP'S ANNOUNCEMENT LATE MONDAY THAT IT WAS PLACING THE DEBT ON WATCH WITH POSITIVE IMPLICATIONS LIKEWISE TRADERS SAID MESA INC'S BONDS ROSE 1/2 TO ONE POINT AS THE COMPANY COMES CLOSER TO COMPLETING AN EXCHANGE AGREEMENT WORKED OUT LAST WEEK WITH HOLDERS OF ITS SUBORDINATED 12 NOTES DUE IN 1996 AND 135 NOTES DUE IN 1999 MORTGAGE SECURITIES HARDLY BUDGED IN LATE TRADING GOVERNMENT NATIONAL MORTAGAGE ASSOCIATION 7 MORTGAGE SECURITIES FOR JULY DELIVERY WERE UNCHANGED AT 101 15/32 FEDERAL HOME LOAN MORTGAGE CORP'S GOLD 7 ISSUE AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 SECURITIES WERE BOTH OFF 1/32 AT 101 16/32 AND 101 11/32 RESPECTIVELY FOUR REAL ESTATE MORTGAGE INVESTMENT CONDUIT OR REMIC DEALS WERE ANNOUNCED LESS THAN THE USUAL PACE THAT'S PARTLY BECAUSE THE TREASURY YIELD CURVE HAS FLATTENED RECENTLY AS LONGTERM RATES HAVE COME DOWN IN RELATIONSHIP TO SHORTTERM RATES IT'S LESS PROFITABLE TO UNDERWRITE DEALS WHEN LONGTERM RATES DROP CANDACE CUMBERBATCH CONTRIBUTED TO THIS ARTICLE 9306230103 930623 US INCREASES TARIFFS ON STEEL BY LARGE MARGIN DOMESTIC PRODUCERS WIN ACTION WITH CRITICISM OF DUMPING SUBSIDIES BY ASRA Q NOMANI AND DANA MILBANK STAFF REPORTERS OF THE WALL STREET JOURNAL THE COMMERCE DEPARTMENT MOVED TO SADDLE STEEL IMPORTS TO THE US WITH STIFF TARIFFS AVERAGING 365 HEIGHTENING TRADE TENSIONS BETWEEN THE US AND MAJOR TRADING PARTNERS THE ACTION RESULTS FROM US STEELMAKERS' CHARGES THAT FOREIGN PRODUCERS FROM 19 COUNTRIES DUMP STEEL IN THE US AT UNFAIRLY LOW PRICES AND A RELATED US INDUSTRY COMPLAINT THAT 12 COUNTRIES UNFAIRLY SUBSIDIZE THEIR STEEL EXPORTS THE DECISION IS SUBJECT TO APPROVAL BY THE INTERNATIONAL TRADE COMMISSION WHICH HAS TO RULE ON WHETHER THE IMPORTS INJURED THE US INDUSTRY THAT DECISION IS EXPECTED JULY 27 BOTH SETS OF COMPLAINTS ARE AT THE CENTER OF A DISPUTE THAT HAS TIED TRADE NEGOTIATIONS IN KNOTS FOR A YEAR IN THE PAST VARIOUS TRADE DISPUTES IN OTHER INDUSTRIES HAVE BEEN SETTLED BEFORE THE COMMERCE DEPARTMENT ISSUED A FINAL TARIFF RULING AND NEGOTIATIONS IN THIS CASE ARE STILL POSSIBLE BEFORE ALL LEGAL CHALLENGES ARE EXHAUSTED THE US STEEL INDUSTRY HAS BEEN LOBBYING TO SEE THE TRADE RULING TO THE END WITHOUT A NEGOTIATED SETTLEMENT TAKING ITS PLACE IN IMPOSING THE FINAL MARGINS THE COMMERCE DEPARTMENT REJECTED SETTLEMENT OFFERS FROM 11 NATIONS THE DUTIES COVER SOME SEVEN MILLION TONS OF STEEL VALUED AT 32 BILLION ANNUALLY FROM 20 NATIONS THE OVERALL AVERAGE DUTIES OF 365 WERE HIGHER THAN PRELIMINARY DUTIES THAT AVERAGED ABOUT 27 WHEN THEY WERE IMPOSED LAST NOVEMBER AND JANUARY AVERAGE DUTIES AGAINST JAPAN THE LARGEST STEEL EXPORTER TO THE US ROSE TO 37 FROM 247 AVERAGE DUTIES AGAINST CANADA THE SECONDLARGEST EXPORTER TO THE US ROSE TO 272 FROM 106 THE LATEST DUTIES STRENGTHEN THE HAND OF DOMESTIC STEELMAKERS IN NEGOTIATIONS FOR A MULTILATERAL STEEL TRADE ACCORD THE TARIFFS WILL LIKELY STAY IN PLACE UNTIL SUCH AN ACCORD IS REACHED YESTERDAY US PRODUCERS REITERATED THEY AREN'T INTERESTED IN BUDGING MUCH CURTIS BARNETTE CHAIRMAN OF BETHLEHEM STEEL CORP SAID IT WOULD BE A VAST MISTAKE TO NEGOTIATE MULTILATERAL TERMS PUSHED BY JAPAN AND EUROPE A JAPANESE GOVERNMENT OFFICIAL IN WASHINGTON CALLED THE US RULING SIMPLY UNACCEPTABLE AND INCONSISTENT WITH THE FACTS THE OFFICIAL ADDED THERE IS NO SIGN THAT THE US INDUSTRY IS INTERESTED IN MAKING SOME ARRANGEMENTS WITH FOREIGN PRODUCERS TO SETTLE THE LEGAL DISPUTE BILATERAL TALKS BETWEEN THE US AND JAPAN FELL APART LAST WEEK IN TOKYO SIR LEON BRITTAN THE EUROPEAN COMMUNITY'S FOREIGN TRADE COMMISSIONER CONDEMNED THE RULING IT IS SIMPLY UNACCEPTABLE THAT STEEL IMPORTS FROM THE EUROPEAN COMMUNITY AND 13 OTHER COUNTRIES SHOULD BE USED AS A WHIPPING BOY FOR PROBLEMS ARISING LARGELY FROM DOMESTIC COMPETITION WITHIN THE US SIR LEON SAID THE EC WAS ESPECIALLY CRITICAL OF THE US DECISION TO INCREASE SUBSTANTIALLY SOME OF THE DUMPING DUTIES FROM PRELIMINARY FINDINGS ISSUED IN JANUARY THE HIGHER DUTIES PROMPTED FRED TELMER CHAIRMAN OF CANADA'S STELCO INC TO CALL FOR STRENGTHENED CANADIAN TRADE LAWS COMMERCE SECRETARY RON BROWN DISCOURAGED A BROAD READING OF THE CLINTON ADMINISTRATION'S TRADE POLICY FROM THE RULING SAYING THE DEPARTMENT ARRIVED AT THE FINAL NUMBERS BY STRICTLY FOLLOWING MANDATED PROCEDURES STILL MICHELLE APPLEBAUM STEEL ANALYST WITH SALOMON BROTHERS SAID THE RULING WAS SLIGHTLY STRONGER THAN EXPECTED AND THEREFORE A BIT OF A VICTORY FOR US PRODUCERS A DEFEAT FOR US STEELMAKERS WOULD HAVE LED TO A RESURGENCE OF FOREIGN STEEL INTO THE MARKET IMPORTS' SHARE OF THE US MARKET THROUGH THE FIRST FOUR MONTHS OF 1993 FELL TO 152 FROM 18 A YEAR EARLIER IMPORTS FROM JAPAN AND EUROPE DECLINED SUBSTANTIALLY THIS HAS HELPED US PRODUCERS TO RAISE PRICES THREE TIMES THIS YEAR WITH ANOTHER INCREASE EXPECTED IN THE FOURTH QUARTER THE US PRODUCERS DID SUFFER SOME SETBACKS IN YESTERDAY'S DECISION AVERAGE DUTIES AGAINST SOUTH KOREA THE THIRDLARGEST EXPORTER FELL TO 154 FROM 253 THE GOVERNMENT LOWERED DUTIES AGAINST FIVE OTHER NATIONS INCLUDING MEXICO AS PART OF THEIR CASE US STEELMAKERS ARE BLASTING FOREIGN PRODUCERS ON ANOTHER FRONT IN A BRIEF FILED MONDAY WITH THE INTERNATIONAL TRADE COMMISSION TO PROVIDE EVIDENCE OF INJURY THE INDUSTRY CHARGED FOREIGN STEELMAKERS WITH FIXING PRICE AND PRODUCTION LEVELS THE BRIEF WHICH DOESN'T REPRESENT A SEPARATE LAWSUIT CITED A WEB OF CLANDESTINE ANTICOMPETITIVE MILLTOMILL AGREEMENTS BETWEEN FOREIGN PRODUCERS WHICH US STEELMAKERS DISCOVERED IN DOCUMENTS AND LETTERS WHILE INVESTIGATING THE TRADE CASES FOREIGN PRODUCERS DENY THE CHARGES JULIE WOLF CONTRIBUTED TO THIS ARTICLE 9306230102 930623 REVIEW & OUTLOOK EDITORIAL ASIDES DOLE THE DANGEROUS WE CAN ACCEPT SOME REVENUES IF WE HAVE A LOT OF SPENDING CUTS I'M NOT ONE OF THOSE WHO ARE JUST TOTALLY PURE PROBABLY IT WASN'T NECESSARY FOR BOB DOLE TO INFORM THE WORLD THIS PAST WEEKEND THAT HE ISN'T TOTALLY PURE HE IS HOWEVER ONE OF RECENT HISTORY'S CANNIER POLITICIANS SO HE HAS LEFT A LOT OF PEOPLE WONDERING EXACTLY WHAT HE MEANT SUNDAY IN SUGGESTING THAT I SPEAK FOR MYSELF NOW NOT AS A REPUBLICAN LEADER HE'D SIGN ONTO TAX INCREASES OF SOME SORT ON WEALTHY AMERICANS ONE SCHOOL OF THOUGHT AMONG THE GOP IS THAT MR DOLE SHOULD BE HANGED IN EFFIGY FOR THIS ANOTHER POINTS OUT THAT IT'S THE GAME HE PLAYS TO KEEP A TIMID CREW OF REPUBLICAN SENATORS SAILING SOLIDLY AGAINST THE DEMOCRATS' PLAN OUR OWN VIEW IS THAT AS A LITTLE BOY MR DOLE PROBABLY LIKED TO PLAY WITH MATCHES NO REAL HARM HAS TO COME OF SUCH TALK AS LONG AS THE MINORITY LEADER UNDERSTANDS THAT IT IS THE INCREASE IN MARGINAL TAX RATES ON INDIVIDUALS AND SMALL BUSINESS OWNERS THAT IS FAR AND AWAY THE BIGGEST ECONOMIC BOMB IN THE ENTIRE CLINTON ECONOMIC PACKAGE WE TRUST THAT MR DOLE WON'T BLOW UP HIS OWN PARTY 9306230101 930623 INTERNATIONAL POLISH BANK MAKES DEBUT WARSAW WIELKOPOLSKI BANK KREDYTOWY SA THE FIRST POLISH STATEOWNED BANK TO BE PRIVATIZED MADE ITS DEBUT ON THE WARSAW STOCK EXCHANGE TRADING AT THREE TIMES ITS INITIAL OFFERING PRICE THE STOCK'S APPRECIATION SINCE ITS PUBLIC PLACEMENT ON APRIL 27 EVEN BEATS THE STRONG RUNUP ON THE WARSAW MARKET WHOSE KEY INDEX HAS MORE THAN DOUBLED IN TWO MONTHS RISING TO 3309 YESTERDAY FROM ABOUT 1500 IN LATE APRIL WBK BEGAN TRADING NEAR 350000 ZLOTYS 2081 A SHARE YESTERDAY ITS STOCK WAS OFFERED IN APRIL AT 115000 ZLOTYS 9306230100 930623 LETTERS TO THE EDITOR THE CARING' CLINTONS GIVE US THE WILLIES REGARDING MICHAEL LERNER'S JUNE 3 COUNTERPOINT THE MEANING OF THE POLITICS OF MEANING MR LERNER FROM WHOM HILLARY CLINTON GOT THE PHRASE THE POLITICS OF MEANING IS WHAT IS KNOWN AS A NEOLIBERAL IRVING KRISTOL DEFINED A NEOCONSERVATIVE AS A LIBERAL WHO HAS BEEN MUGGED BY REALITY A NEOLIBERAL AS ONE WAG PUT IT IS A LIBERAL WHO HAS BEEN MUGGED BY REALITY BUT REFUSES TO PRESS CHARGES LIKE BILL CLINTON DURING THE CAMPAIGN THESE PEOPLE TALK AS THOUGH THEY'VE LEARNED FROM THE FAILURE OF BIG GOVERNMENT PROGRAMS IN THE PAST BUT ONCE IN POWER THEY BEHAVE WELL LIKE BILL CLINTON HAS SINCE THE INAUGURATION THEY TAKE A HARD TURN TO THE LEFT LIKE MOST LIBERALS OF THIS STRIPE MR LERNER CAN CONTEMPLATE A FREEMARKET ECONOMY ONLY IN TERMS OF GREED AND MANIPULATION IF YOU ARE SUCCESSFUL YOU ARE GUILTY OF A BOTTOMLINE MENTALITY YOU ARE THE MOST EFFECTIVE AT MANIPULATING AND CONTROLLING OTHERS HENCE THE CLINTON TAX INCREASES WHICH ARE MEANT TO PUNISH THE RICH FOR THE WILD TIMES THEY PRESUMABLY ENJOYED IN THE 1980S THAT HIGHER MARGINAL RATES WILL BRING LITTLE ADDITIONAL REVENUE WHILE CAUSING DISLOCATIONS IN THE ECONOMY IE DESTROYING JOBS DOESN'T SEEM TO MATTER TO THESE PEOPLE THEY ARE MUCH MORE INTERESTED IN WAGING AN IDEOLOGICAL WAR AGAINST REAGANOMICS UNDER WHICH BY THE WAY THE RICH PAID MORE TAXES ON BOTH A PERCENTAGE AND ABSOLUTE BASIS LERNER'S CLASSWARFARE RHETORIC IS POSITIVELY ARCHAIC HE TELLS US THAT THE ATTACKS OF SELFISH CORPORATE ELITES ARE PARTLY RESPONSIBLE FOR CLINTON'S DROP IN POPULARITY OH IT WAS NOTABLE HOW MANY CEOS LIKE JOHN SCULLEY OF APPLE SUPPORTED MR CLINTON AND HAVE SHOWN NO SIGN OF ABANDONING HIM YET OTHER CEOS HAVE BEEN NOTABLY RETICENT BEYOND TELLING BUSINESS REPORTERS THAT THE CONSTANT FLIPFLOPS IN MR CLINTON'S ECONOMIC PROPOSALS MAKE IT DIFFICULT TO DO ANY CORPORATE PLANNING AND SO FAR AS THE DEBATE ON VALUES GOES MR LERNER'S ARTICLE INDICATES THAT HE HAS NO IDEA WHY PARENTS MIGHT BE UPSET AT HAVING THEIR CHILDREN TAUGHT THAT SODOMY IS PERFECTLY ACCEPTABLE UNDER THE GUISE OF PROMOTING TOLERANCE MILITANT GAY GROUPS AND THE REST OF THE SEXUAL LOBBY DO MAKE IT MORE DIFFICULT FOR PARENTS TO TEACH THEIR CHILDREN PREMARITAL ABSTINENCE MR LERNER SEEMS TO THINK THAT THERE IS A HUGE CONSTITUENCY OUT THERE FOR A LIBERALISM THAT MAKES PASSING REFERENCE TO RELIGIOUS AND ETHICAL VALUES AND THEN GOES ON TO DO WHAT LIBERALS DO BEST WHICH IS TO TAX AND SPEND OUR MONEY MR CLINTON'S CURRENT STANDING IN THE POLLS IS ONE INDICATION THAT SUCH MAY NOT BE THE CASE MR LERNER ATTEMPTS TO DRAW SIMILARITIES BETWEEN HIS AND HILLARY CLINTON'S POLITICS OF MEANING AND THAT OF RONALD REAGAN'S APPLES AND ORANGES ANYONE ALTHOUGH MR REAGAN CONSISTENTLY UNDERSCORED THE IMPORTANCE OF FAMILY RELIGION AND CIVIC RESPONSIBILITY HE RARELY LECTURED THE AMERICAN PUBLIC OR INDOCTRINATED THE POLITICAL SYSTEM WITH HIS PERSONAL INSIGHTS AND MIDLIFE REVELATIONS INTO SUCH MATTERS THAT IS THE CRITICAL DIFFERENCE BETWEEN CLINTON/LERNER AND REAGAN MRS CLINTON WILL FAIL IN HER MESSAGE FOR MANY OF THE SAME REASONS DAN QUAYLE OSTENSIBLY FAILED AND FOR SOME VERY DIFFERENT REASONS AMERICANS WERE OFFENDED AND SOMEWHAT AMUSED BY A RICH ARROGANT CONSERVATIVE TELLING THEM HOW TO LIVE THEIR LIVES LIKEWISE THE PEORIA FARMER DOES NOT WANT TO BE TOLD BY AN IVY LEAGUEEDUCATED ATTORNEY HOW TO BECOME MORE COMMUNITYSPIRITED AND HOW HE SHOULD OCCASIONALLY CONTEMPLATE WHAT IT MEANS TO BE A HUMAN BEING IN THE 20TH CENTURY WHILE SWEATING ON HIS COMBINE HE DOES NOT WANT MR CLINTON ACCORDING TO MR LERNER TO SUBTLY BUT CONSISTENTLY WEAVE A POLITICS OF MEANING INTO HIS ECONOMIC PROGRAM AND CONTRARY TO POPULAR ANGSTRIDDEN BELIEF HE IS GENERALLY HAPPY WITH HIS WORK RESPECTS AND LIKES HIS COWORKERS LOVES HIS WIFE AND KIDS AND HELPS HIS NEIGHBOR WHENEVER POSSIBLE WHAT MAKES HIM MOST UNHAPPY IS SANCTIMONIOUS POLITICIANS AND ACADEMES TELLING HIM WHAT A SLUG HE IS IN RHETORIC AKIN TO THAT MOST FREQUENTLY USED BY COLLEGE SOPHOMORES AS A CONSERVATIVE I WAS FASCINATED WITH MR LERNER'S DEFINITION OF WHAT I AND THOSE OF THE RIGHT THINK AND BELIEVE HE RIGHTLY RECOGNIZES THAT WE CONSERVATIVES SEE SOCIETY AS BEING IN A DEEP ETHICAL AND SPIRITUAL CRISIS HE ERRS IN BELIEVING THAT WE INTOLERANTLY ATTRIBUTE THE CRISIS TO SOME OTHER GAYS BLACKS FEMINISTS TAXANDSPEND LIBERALS THIS CONSERVATIVE IS A FORMER PEACE CORPS VOLUNTEER AND RETIRED NAVAL OFFICER AND HAS HAD ROOMMATES AND WORKED BESIDE PERSONS OF AMONG OTHERS AFRICAN HISPANIC SEMITIC AND ASIAN ORIGINS AND IN MY YOUTH WAS BLESSED WITH A DOMINANT MALE ROLE MODEL WHO WAS GAY AND WAS RAISED IN A SINGLEPARENT FEMALE FAMILY LARGELY BECAUSE OF MY POLYGLOT EXPERIENCES I HAVE DEVELOPED STRONGLY HELD ETHICAL CONCEPTS THAT I HAVE HAD SOME SUCCESS IN MANIFESTING IN THE SCHOOLS CHURCHES WORKPLACES AND SOCIETAL ASSEMBLAGES OF WHICH I AM A PART I HAVE FOUND THOUGH THAT THE FREE EXCHANGE OF IDEAS AND PERSONAL MANIFESTATION OF ETHICAL CONCEPTS IS INCREASINGLY DIFFICULT BECAUSE A TWOTON GORILLA WANTS TO HAVE A LARGER SAYSO IN THE SCHOOLS CHURCHES WORKPLACES AND SOCIETAL ASSEMBLAGES THIS GORILLA IS GOVERNMENT AND IT WANTS ALL PERSONAL ACTION TO RESULT IN THE FURTHERANCE OF ITS AGENDAS TODAY I CAN NO LONGER CONSUMMATE AN EMPLOYEREMPLOYEE RELATIONSHIP WITHOUT THE FEAR OF HAVING TO PROVE AN INNOCENT AND UNBIASED INTENT I ONCE HEADED A CORPORATION THAT EMPLOYED ABOUT 30 PEOPLE I'VE BEEN THROUGH MANY OF THE HOOPS AND KANGAROOCOURT HEARINGS REQUIRED BY THE IRS OSHA EEOC EPA WORKERS COMPENSATION BOARDS ET AL AND I SIMPLY DON'T WANT TO DANCE WITH THIS GORILLA ANYMORE AND THAT MR LERNER IS WHY I AM A CONSERVATIVE THE THESIS THAT CLINTON'S ELECTION WAS THE NATION'S RESPONSE TO AN UNFULFILLED DESIRE FOR VALUES AND MEANING THROUGH THE POLITICAL PROCESS IS LUDICROUS AMERICANS ARE PERFECTLY CAPABLE ON THEIR OWN OF PURSUING ENDEAVORS THAT PROVIDE WORTH AND DETERMINING WHAT COUNTS IN LIFE WITHOUT THE GUIDANCE OR SANCTION OF THE STATE FOR MR LERNER TO CLAIM THAT CLINTON'S ECONOMIC PROGRAM INCORPORATES THE POLITICS OF MEANING BY TRANSCENDING THE STRUGGLE FOR MATERIAL SUCCESS IS THE HEIGHT OF ARROGANCE MR LERNER'S ARTICLE DEMONSTRATES THE BELIEF THAT A PERVASIVE OMNISCIENT STATE ONCE IN THE HANDS OF A CARING COUPLE LIKE THE CLINTONS CAN OVERCOME THE EVILS OF MARKET ECONOMICS THE SINS OF SELFINTEREST AND THE OBSESSIVENESS WITH POLITICAL RIGHTS THE LOGICAL EXTENSION OF THIS MINDSET IS THAT INDIVIDUALS AND NATIONS CONSUMED BY A HOPELESS FEELING BEREFT OF VALUES AND MEANING WILL WILLINGLY FORFEIT FUNDAMENTAL RIGHTS AND THE FREEDOM TO PURSUE THEIR LIVELIHOODS IN EXCHANGE FOR THE FALSE SECURITY OF A STATECONTROLLED SOCIETY MR LERNER REFERS TO OUR CAPITALISTIC PROCESS AS AN ECONOMY WHOSE BOTTOM LINE MENTALITY REWARDS THOSE WHO ARE MOST EFFECTIVE AT MANIPULATING OR CONTROLLING OTHERS IN A TRULY FREE MARKET NO ONE CONTROLS OR MANIPULATES ANYONE A DEAL IS CONSUMMATED ONLY IF ALL INVOLVED PARTIES MUTUALLY BENEFIT FROM THE TRANSACTION THE ONLY INSTITUTION THAT UNDULY CONTROLS US IS THE ACTIVIST GOVERNMENT THAT MR LERNER PURPORTS TO BE ASSOCIATED WITH I DON'T WANT SOMEONE WITH HILLARY'S MENTALITY TO EVEN THINK ABOUT MY SPIRITUALITY AND THE MEANING IN MY LIFE LET ALONE START CARING ABOUT IT ONCE PEOPLE LIKE MICHAEL LERNER AND MRS CLINTON START CARING ABOUT YOU YOU WILL BE ON THE ROAD TO REEDUCATION MICHAEL LERNER ASKS BUT WHAT EXACTLY IS SO FRIGHTENING ABOUT THE POLITICS OF MEANING IF HE WEREN'T SO ENTANGLED IN GAUZY VAPOROUS WORDS TO WHICH HE ATTACHES NO CLEAR MEANING HE MIGHT SEE WHAT FRIGHTENS US ORDINARY FOLKS THE ACTIVIST GOVERNMENT OF MR LERNER'S AND HILLARY'S POLITICS OF MEANING MEANS INCREASING STATE INTRUSIVENESS INTO OUR LIVES AT THE EXPENSE OF OUR OWN VOLUNTARY PURSUITS OF HAPPINESS SUCH NONCOERCIVE PURSUITS ARE WHAT MAKE UP THE MARKETPLACE A NATURAL HUMAN PHENOMENON THAT MR LERNER SCORNS IT'S INTERESTING THAT HE CONSIDERS PEACEFUL COMMERCIAL ACTIVITY AS EVIL WHILE HE VIEWS STATE COERCION AS THE FONT OF GOODNESS AND LIGHT IN FACT HIS VIEWS AND INCIDENTALLY MRS CLINTON'S ALSO BETRAY AN APPALLING IGNORANCE OF HOW MARKETS ACTUALLY FUNCTION THE FREE MARKET IS THE WORLD'S MOST VIVID EXAMPLE OF THE GOLDEN RULE SINCE THE MARKETPLACE ARISES FROM NONCOERCIVE EXCHANGE THE ONLY WAY TO SUCCEED IN A MARKET ENVIRONMENT IS TO CREATE VALUE FOR OTHERS TO TROT OUT OLD SLOGANS ABOUT THE MATERIALISM OF THE MARKETPLACE AND THE NEED TO MOVE FROM AN ETHOS OF SELFISHNESS TO AN ETHOS OF CARING AND COMMUNITY RING HOLLOW IN AN ERA WHERE NATIONS THAT ONCE SHUNNED THE MARKET IN THE NAME OF CARING NOW LUST AFTER IT AND WHERE OUR OWN INCREASING ABANDONMENT OF MARKET PRINCIPLES IN FAVOR OF POLITICS SEEMS TO COINCIDE WITH THE VERY MATERIALISM AND SELFISHNESS BEING DECRIED YET AT THE ROOT OF MR LERNER'S PROBLEMS AND THAT OF THE POLITICS OF MEANING IN GENERAL IS THE IDEA THAT THERE ARE ETHICS AND VALUES ON THE ONE SIDE AND THE MARKET AND RIGHTS ON THE OTHER THIS DICHOTOMOUS CONCEPTION IS UNDOUBTEDLY SHARED BY SOME ON THE RIGHT AS WELL BUT IT IS FALLACIOUS NONETHELESS THE COMMITMENT TO INDIVIDUAL RIGHTS AND LIBERTIES AND THE MARKET SYSTEM THAT RESULTS FROM THAT COMMITMENT IS ITSELF A MORAL ORDER 9306230099 930623 WHO'S NEWS IMMULOGIC PHARMACEUTICAL CORP IMMULOGIC PHARMACEUTICAL CORP WALTHAM MASS LARRY SOLL 50 YEARS OLD WAS ELECTED TO THE BOARD OF THIS PHARMACEUTICAL CONCERN HE IS CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF SYNERGEN INC DR SOLL WILL FILL THE VACANCY LEFT BY JAMES BOCHNOWSKI 49 WHO DIDN'T STAND FOR REELECTION 9306230098 930623 REVIEW & OUTLOOK EDITORIAL RISING SONS JAPANESE POLITICS HAS OFTEN BEEN A FATHERANDSON AFFAIR WITH CONSTITUENCIES PASSING BETWEEN GENERATIONS AS READILY AS HEIRLOOMS A POLITICSASPERSONALPROPERTY PHENOMENON FAMILIAR TO VOTERS IN THE US AS WELL TWO LEADERS OF JAPAN'S POLITICAL REVOLT TSUTOMU HATA AND ICHIRO OZAWA ARE SONS OF FORMER DIET MEMBERS SO ARE DOZENS OF THEIR PARLIAMENTARY COLLEAGUES THUS ONE IS ABLE TO COMPREHEND THE GRAVITY YESTERDAY OF MESSRS HATA AND OZAWA FORMALLY LEAVING THE LIBERAL DEMOCRATIC PARTY TO FORM A PARTY OF THEIR OWN THEY HAD SPURNED THEIR FATHERS' POLITICAL LEGACY IN DOING SO THEY ILLUMINATED THE GENERATIONAL DIVIDE THAT IS AT THE HEART OF THE REBELLION THAT BROUGHT DOWN JAPAN'S GOVERNMENT THIS PAST WEEKEND THE NARROW ISSUE THAT IGNITED THE NOCONFIDENCE MOTION WAS WHETHER PRIME MINISTER MIYAZAWA HAD MADE A GOODFAITH EFFORT TO PROMOTE POLITICAL REFORM THE BROADER ISSUE WAS THIS WHITHER JAPAN IN THE VIEW OF THE UNFORTUNATE KIICHI MIYAZAWA 73 THE WAY THINGS WERE WAS THE WAY THINGS OUGHT TO BE A PROFESSIONAL BUREAUCRACY A POLITICAL PARTY THAT WON ELECTION AFTER ELECTION A LOW INTERNATIONAL PROFILE AND A CERTAIN DEFERENCE TO THE US CHANGING THINGS MIGHT GUM UP THE WORKS BETTER TO KILL REFORM WITH KINDNESS AND PRETEND REGRET AFTER ALL THAT'S HOW THINGS HAVE BEEN DONE IN JAPAN AND KEEP IN MIND THIS SCANDALRIDDEN COLLAPSING POLITICAL SYSTEM IS ESSENTIALLY THE MODEL THAT A LOT OF MITI ADMIRERS HAVE PROMOTED FOR THE US TO FIFTYSOMETHINGS LIKE MESSRS OZAWA AND HATA MR MIYAZAWA'S FAILURE TO PUSH THROUGH POLITICAL REFORM WAS A SYMPTOM OF HOW THE SYSTEM HAD SEIZED UP JAPAN'S SELFIMPOSED RIGIDITIES THEY BELIEVE DERIVE FROM THE COUNTRY'S POSTWAR ODYSSEY UP FROM POVERTY THEY NO LONGER MADE SENSE FOR A SOCIETY THAT IS NOW URBAN PROSPEROUS AND ESTABLISHED SO THE REBELS LEFT TAKING 42 OTHERS WITH THEM INTO THEIR NEW SO FAR UNNAMED PARTY ANOTHER 10 LEFT THE LDP TO FORM THE SAKIGAKE OR PIONEERS PARTY THESE DEFECTIONS AUGUR THE BEGINNING OF A COMPETITIVE MULTIPARTY SYSTEM THAT COULD FORCE A FUNDAMENTAL REORDERING OF JAPANESE POLITICS BUT IF THE FORCES OF CHANGE ARE NOW IN PLACE SO ARE THOSE OF STASIS THE LDP'S VOTEWINNING SKILLS ARE FORMIDABLE ESTABLISHING THE CHECKS AND BALANCES THAT JAPAN'S GOVERNING SYSTEM SO SORELY LACKS WON'T BE EASY AND THERE IS NO ASSURANCE THAT MESSRS HATA AND OZAWA ARE UP TO THE TASK OF BRINGING JAPAN'S POLITICS OUT OF THE SHADOWS MOREOVER IF A WEAK GOVERNMENT EMERGES FROM NEXT MONTH'S ELECTION THE ENTRENCHED AND INFLUENTIAL BUREAUCRACY WOULD BE MORE THAN WILLING TO FILL THE POWER VACUUM IN THIS SENSE THEN THE CREATIVE DESTRUCTION OF THE STATUS QUO THAT HAS MARKED THIS EXTRAORDINARY WEEK DOES NOT IN ITSELF ADVANCE THE MANDATE FOR CHANGE WHAT IT DOES IS MAKE SUCH CHANGE POSSIBLE AND WE THINK INEVITABLE IN THE ULTIMATE IRONY OF A WEEK RICH IN THEM THE DEATH OF POLITICAL REFORM GAVE IT RENEWED LIFE SOME IN THE US WILL NO DOUBT PINE FOR THE GOOD OLD DAYS WHEN THE LDP'S RULE SEEMED AS IMMUTABLE AS THE LAWS OF PHYSICS FOR BETTER AND FOR WORSE THE LDP'S 38YEAR LOCK ON POWER MEANT THAT JAPANESE POLICY WAS PREDICTABLE THE FOUNDATION HOWEVER WAS CRUMBLING THE MISSTEPS BEGAN WITH A FATEFUL AND ARROGANT 1988 DECISION BY THE LDP TO IMPOSE A 3 CONSUMPTION TAX ON THE JAPANESE PEOPLE THIS TRIGGERED POPULAR DISGUST AND A TAX REVOLT THE SCANDALS BEGAN VOTERS IN 1990 TOOK AWAY THE LDP'S MAJORITY IN THE LARGELY CEREMONIAL UPPER HOUSE OF THE DIET THE ESTABLISHMENT LEARNED LITTLE THOUGH THE TAX BURDEN ONLY INCREASED CLEARLY THE LDP HAD LOST TOUCH WITH SOME IMPORTANT MESSAGES FROM JAPAN'S ELECTORATE AND IT IS OUR VIEW THAT A SIMILAR POPULAR MESSAGE IS BEING COMPLETELY MISSED BY THE DEMOCRATS PROPOSING TAX INCREASES IN WASHINGTON BUT THAT IS THEIR CHOICE ON BALANCE THESE EVENTS MUST BE REGARDED AS POSITIVE FREE SOCIETIES ASSUME CHANGE WHICH IS WHY JAPAN'S FERMENT IS NOT A POLITICAL CRISIS BURMA HAS A POLITICAL CRISIS JAPAN WILL HAVE AN ELECTION OUT OF THAT ELECTION AND OUT OF THIS PERIOD OF SOULSEARCHING THE JAPANESE HAVE A CHANCE TO BUILD A POLITICAL SYSTEM WORTHY OF THEIR STATURE AS A MODERN NATION 9306230096 930623 BUSINESS BRIEF HIBERNIA CORP PROGRESS AT BANK LEADS REGULATOR TO LIFT ORDER HIBERNIA CORP SAID THAT IMPROVED CONDITIONS AT ITS LEAD BANK HIBERNIA NATIONAL BANK HAS LED THE OFFICE OF THE COMPTROLLER OF THE CURRENCY TO LIFT ITS JULY 1991 CONSENT ORDER THE NEW ORLEANS BANKHOLDING COMPANY SAID ITS SUCCESSFUL RECAPITALIZATION HAS PUT HIBERNIA NATIONAL IN THE WELLCAPITALIZED CATEGORY IN NEW REGULATORY STANDARDS A SIMILAR 1991 SUPERVISORY AGREEMENT WITH THE FEDERAL RESERVE BANK OF ATLANTA IS NOW UNDER REVIEW HIBERNIA SAID THE OCC ENFORCEMENT ACTION REQUIRED THE IMPLEMENTATION OF PLANS TO INCREASE CAPITAL AND TO IMPROVE LIQUIDITY PROFITABILITY AND ASSET QUALITY HIBERNIA SAID 9306230095 930623 CIGARETTE SMUGGLERS LIGHT UP BORDER OF USCANADA TAXES TAKE BIG HIT BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA IS EXPECTED TO EXPORT A RECORD NUMBER OF CIGARETTES TO THE US THIS YEAR BUT FEW WILL BE SMOKED BY AMERICANS THE BULK OF THE CIGARETTES WILL BE SMUGGLED BACK INTO CANADA AND SOLD ILLEGALLY ON THE BLACK MARKET AT CUTRATE PRICES INDUSTRY ANALYSTS SAID CANADA EXPORTED 79 BILLION CIGARETTES IN THE FIRST FIVE MONTHS OF THE YEAR UP 135 FROM THE YEAR EARLIER ACCORDING TO STATISTICS CANADA DATA ISSUED YESTERDAY MOST OF THE CIGARETTES WERE TRUCKED TO US WAREHOUSES JUST ACROSS THE BORDER FROM CANADA THE SMUGGLING IS CAUSING HEAVY TAX LOSSES TO CANADA'S FEDERAL AND PROVINCIAL GOVERNMENTS DAVID SWEANOR A LAWYER FOR THE NONSMOKERS' RIGHTS ASSOCIATION A LOBBY GROUP ESTIMATED THAT THE FEDERAL AND PROVINCIAL REVENUE LOSS IN THE JANUARY TO MAY PERIOD TOTALED MORE THAN ONE BILLION CANADIAN DOLLARS US7856 MILLION SMUGGLING ACTIVITY IS DIFFICULT TO CHECK BECAUSE MUCH OF THE 5000MILE BORDER BETWEEN CANADA AND THE US IS ONLY LIGHTLY PATROLLED MUCH OF IT IS BELIEVED TO BE DONE BY NATIVE CANADIANS WHO CLAIM A RIGHT TO MOVE GOODS ACROSS THE BORDER DUTYFREE ONE MAJOR RESERVATION STRADDLES THE BORDER THE CONTRABAND TRADE HAS SPARKED VIOLENCE MAINLY BETWEEN RIVAL SMUGGLING GANGS ALMOST EVERY NIGHT MACHINEGUN FIRE IS HEARD SPEED BOATS ARE RUNNING THE RIVERS AT FULL SPEED IN THE DARK WITH THEIR LIGHTS TURNED OFF ENGAGED IN CRIMINAL ACTIVITY SAID DON BOUDRIA A MEMBER OF PARLIAMENT I AM NOT DESCRIBING LIFE IN SARAJEVO OR MOGADISHU I AM DESCRIBING THE PRACTICE OF TOBACCO SMUGGLING ON THE ST LAWRENCE RIVER HE SAID A 200CIGARETTE CARTON OF LEGALLY PURCHASED CANADIANMADE CIGARETTES SELLS FOR MORE THAN C50 ABOUT 70 OF THAT IS PROVINCIAL AND FEDERAL TAX A CARTON OF CONTRABAND CIGARETTES SMUGGLED BACK FROM THE US SELLS FOR AS LITTLE AS C26 CIGARETTE EXPORTS HAVE SURGED IN RECENT MONTHS PARTLY BECAUSE IMPERIAL TOBACCO LTD CANADA'S LARGEST CIGARETTE MAKER RESUMED EXPORTING TO THE US MARKET SAID ROBERT PARKER PRESIDENT OF THE CANADIAN TOBACCO MANUFACTURERS' COUNCIL AN INDUSTRY GROUP IMPERIAL A DIVISION OF IMASCO LTD HAD VOLUNTARILY CURTAILED ITS SHIPMENTS TO THE US LAST YEAR AS PART OF AN AGREEMENT WITH THE CANADIAN GOVERNMENT TO HELP REDUCE SMUGGLING BUT IMPERIAL ABANDONED ITS ANTISMUGGLING POLICY EARLIER THIS YEAR AFTER DISCOVERING THAT OTHER CANADIAN AND FOREIGN MANUFACTURERS HAD MOVED IN TO FILL THE SUPPLY GAP CANADA'S OTHER MAJOR TOBACCO MANUFACTURERS ARE RJRMACDONALD INC A SUBSIDIARY OF RJR NABISCO HOLDINGS CORP AND ROTHMANS BENSON & HEDGES INC JOINTLY OWNED BY PHILIP MORRIS COS AND ROTHMANS INC A UNIT OF ROTHMANS INTERNATIONAL PLC 9306230094 930623 REVIEW & OUTLOOK EDITORIAL LEADERSHIP VACUUM THERE ARE 17 MILLION INDIVIDUALS OUT OF WORK AROUND THE EUROPEAN COMMUNITY THIS GRIM ECONOMIC AND POLITICAL FACT PERVADED THE EC SUMMIT CONCLUDED YESTERDAY IN COPENHAGEN IT MUST BE NOTED THAT THE SUMMIT WAS ITSELF A GATHERING OF PEOPLE WHO HAVE JOBS BUT THEY DON'T SEEM TO BE DOING MUCH OF ANYTHING THE GOSSIP LEADING UP TO THE COPENHAGEN SUMMIT SUGGESTED THAT AT LAST EUROPE WAS GOING TO SEE SOME STIMULATING DISCUSSION ON HOW TO REMEDY EUROSCLEROSIS JACQUES DELORS AND COMPANY HAD BEEN DROPPING HINTS THAT EUROPE'S UNEMPLOYMENT CRISIS WAS PROMPTING A SERIOUS REAPPRAISAL OF LONGHELD BELIEFS ON THE COST AND SHAPE OF EUROPE'S WELFARE SYSTEM IT DIDN'T HAPPEN THE SUMMITEERS VEERED OFF INTO IRRELEVANCY AND SIDETRACKED WHAT COULD HAVE BEEN A PRODUCTIVE EXCHANGE THE HEADLINE ITEM IN YESTERDAY'S FINAL ECONOMIC COMMUNIQUE HERALDED YET MORE GOVERNMENT SPENDING FOR PUBLIC WORKS PROJECTS THE MAIN FLAW IS THAT THIS MONEY DOES NOTHING TO ADDRESS THE REAL PROBLEM WHICH IS THE PRIVATE SECTOR'S INABILITY TO CREATE JOBS INSTEAD OF ADDRESSING THIS JACQUES DELORS DELIVERED A SPEECH PROMOTING EIGHT IDEAS THAT ARE EITHER IRRELEVANT TO THE CRISIS AT HAND FOR EXAMPLE MONETARY UNION AND ENVIRONMENTAL CONCERN WORTHY BUT SHOPWORN EDUCATIONAL REFORM OR LIFTED FROM THE 1970S DEEP FREEZE HUGE SUBSIDIES FOR TELECOMMUNICATIONS AND OTHER MODERNSOUNDING INDUSTRIES IT WAS UP TO JOHN MAJOR TO EMPHASIZE WHAT EVERYONE KNOWS TO BE THE ECONOMIC PROBLEM OF THE MOMENT OUR EC UNIT LABOR COSTS IN MANUFACTURING ROSE BY 4 A YEAR THROUGHOUT THE 1980S IN THE US THE INCREASE WAS 1 A YEAR IN JAPAN THERE WAS NO INCREASE AT ALL NONWAGE LABOR COSTS ARE ALMOST TWICE AS HIGH ON AVERAGE IN THE COMMUNITY AS IN THE UNITED STATES MAYBE THERE WAS IMPORTANT THINKING GOING ON BEHIND THE SCENES BUT NO POLITICIAN STEPPED FORWARD TO ADDRESS THE ECONOMIC CONSEQUENCES OF WHAT MR MAJOR SO CLEARLY DESCRIBED A DEEPENING RECESSION AND EUROPE'S INABILITY TO CREATE JOBS EVEN IN GOOD TIMES JOHN MAJOR MANAGED ONE NOT INSIGNIFICANT ACHIEVEMENT HE OBJECTED TO AND FORCED HIS PARTNERS TO WITHDRAW DRAFT COMMUNIQUE LANGUAGE THAT DECLARED THE IMPLEMENTATION OF THE EC'S JOB PLAN SHALL NOT CALL INTO QUESTION THE SOCIAL PROTECTION OF THE CITIZENS THIS RECONSIDERATION OF SOCIAL RIGHTS IS EXACTLY WHAT NEEDS TO HAPPEN NOT NECESSARILY TO WEAKEN PROTECTION THOUGH PERHAPS BUT CERTAINLY TO CALL INTO QUESTION A SYSTEM THAT INDUCES 50 OF THE UNEMPLOYED TO REMAIN ON THE DOLE FOR ONE YEAR OR LONGER AT THE MOMENT EUROPE'S SOCIAL POLICIES OFFER CUSHY SECURITY FOR THOSE WHO HAVE JOBS THE INCUMBENTS IT'S INTERESTING THAT THE GERMANS FRENCH AND DUTCH CLAIM ABOUT 18 SICK DAYS A YEAR WHILE AMERICANS CLAIM SEVEN AND THE JAPANESE FOUR BUT THE SAME EUROPEAN POLICIES ERECT RIGIDITIES THAT LOCK OUT ASPIRANTS COPENHAGEN COULD HAVE BEEN THE START OF EUROPE'S SECOND GREAT OPENING THE FIRST OPENING WAS THE SINGLE MARKET PROJECT WHICH TORE DOWN NATIONAL HINDRANCES TO ECONOMIC ACTIVITY AND SPURRED AN ECONOMIC RESURGENCE A MUCHNEEDED SECOND OPENING WOULD TEAR DOWN THE HURDLES TO LABOR MARKET FLEXIBILITY AND LEAD TO ANOTHER BURST OF ENERGY AS EUROPE TAKES FULL ADVANTAGE OF ITS HUMAN CAPITAL INSTEAD THERE IS DRIFT EUROPEAN LEADERS ARE IN A CATCH22 THEY DON'T FEEL SECURE ENOUGH POLITICALLY TO LAUNCH MAJOR WELFARE REFORMS BUT UNTIL THE INSTITUTIONS OF GOVERNMENT REFLECT MODERN DYNAMIC SOCIETY EUROPE'S LEADERS WILL NOT WIN PUBLIC SUPPORT SO ANOTHER SUMMIT ENDS AND THE WORLD'S LEADERSHIP VACUUM CONTINUES 9306230093 930623 FIDELITY FUNDS AND BALLY AGREE TO EQUITY SWAP BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL LAS VEGAS THE FIDELITY MUTUAL FUND GROUP AGREED TO AN EQUITY SWAP UNDER WHICH IT WOULD GET A MAJOR STAKE IN BALLY GAMING INTERNATIONAL INC A GAMBLING EQUIPMENT MANUFACTURER IN EXCHANGE FIDELITY WOULD GIVE UP SOME OF ITS STOCK IN THE BALLY'S GRAND CASINO RESORT HERE WHICH IS TO EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS EARLY NEXT MONTH FIDELITY MANAGEMENT CORP REACHED THE AGREEMENT WITH BALLY MANUFACTURING CORP WHICH SPUN OFF BALLY GAMING IN 1991 THE EXCHANGE WOULD LEAVE CHICAGOBASED BALLY MANUFACTURING THE PARENT COMPANY OF BALLY'S GRAND WITH A STAKE OF MORE THAN 40 IN THE CASINO AFTER ITS REORGANIZATION FUNDS MANAGED BY BOSTONBASED FIDELITY OWN FIRSTMORTGAGE NOTES OF BALLY'S GRAND WHICH WILL CONVERT INTO EQUITY WHEN BALLY'S GRAND EMERGES FROM CHAPTER 11 DAN HARMETZ WHO MANAGES MOST OF THE FIDELITY FUNDS INVOLVED IN THE TRANSACTION DECLINED TO COMMENT ON THE EXCHANGE WHICH WILL GIVE FIDELITY A MAJOR STAKE IN A GAMBLINGMACHINE COMPANY THAT IS COMPETING IN A BOOMING MARKET AS CASINOS SPREAD AROUND THE COUNTRY THE EXCHANGE APPARENTLY COMPLICATES ITT CORP'S INTEREST IN POSSIBLY ACQUIRING THE 2800ROOM BALLY'S GRAND RESORT ITT THROUGH ITS ITT SHERATON HOTEL UNIT IS INTENT ON ENTERING THE GAMBLING BUSINESS AND HAD BOUGHT A PORTION OF BALLY'S GRAND FIRSTMORTGAGE NOTES LAST YEAR THAT WILL GIVE IT AN 115 EQUITY STAKE IN THE REORGANIZED CASINO AN ITT SPOKESMAN SAID THE COMPANY AS A MAJOR INVESTOR WAS SURPRISED THAT IT HAD NOT BEEN NOTIFIED OF THE DEAL WE WOULD BE ASTONISHED IF THIS KIND OF TRANSACTION WERE TO BE CONDUCTED UNDER THE VEIL OF BANKRUPTCY PROCEEDINGS HE SAID THE SWAP AGREEMENT IS SUBJECT TO REGULATORY AND OTHER APPROVALS ARTHUR GOLDBERG BALLY MANUFACTURING'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY REMAINS COMMITTED TO THE LAS VEGAS MARKET WE'RE A LONGTERM HOLDER MR GOLDBERG SAID OF THE CASINO AND FITNESSCENTER OPERATOR'S STAKE IN THE LAS VEGAS RESORT BUT THE TRANSACTION CLEARLY WOULD GIVE BALLY MANUFACTURING MORE LEVERAGE IF THE LAS VEGAS RESORT IS PUT UP FOR SALE IN ADDITION TO THE EQUITY STAKE BALLY MANUFACTURING HOLDS A 10YEAR MANAGEMENT CONTRACT TO RUN THE RESORT IT WOULD COST A BUYER ABOUT 30 MILLION TO BUY OUT THAT CONTRACT THE LAS VEGAS STRIP CASINO HAS DESIGN PROBLEMS AND OTHER FLAWS BUT IT SITS ON ONE OF THE MOST PROMISING SITES IN TOWN 9306230092 930623 HONG KONG'S INFLATION JUMPS HONG KONG HONG KONG'S MAIN INFLATION GAUGE JUMPED 85 IN MAY FROM A YEAR EARLIER AND THE GOVERNMENT MAINTAINED ITS FORECAST THAT PRICES WILL RISE 95 OVER THE COURSE OF 1993 ALTHOUGH THIS LATEST INCREASE IS FASTER THAN THE CORRESPONDING YEARONYEAR RATES OF INCREASE OF 78 IN MARCH AND 77 IN APRIL IT'S STILL SLOWER THAN THOSE IN JANUARY AND FEBRUARY AT 101 AND 86 RESPECTIVELY ACCORDING TO THE GOVERNMENT'S CHIEF ECONOMIST 9306230091 930623 WHO'S NEWS MONTANA POWER CO MONTANA POWER CO BUTTE MONT JERROLD P PEDERSON CHIEF FINANCIAL OFFICER AND VICE PRESIDENT SINCE 1991 WAS NAMED TO THE COMPANY'S BOARD MR PEDERSON 50 YEARS OLD SUCCEEDS PAUL SCHMECHEL 66 WHO IS RESIGNING FROM THE BOARD ON JUNE 30 MR SCHMECHEL RETIRED LAST YEAR AS MONTANA POWER'S CHAIRMAN BUT SERVED AN ADDITIONAL YEAR AS A DIRECTOR 9306230090 930623 ECONOMY BANKS ARE STARTING TO EASE CREDIT CRUNCH SOME HOME BUILDERS FIND LOANS ARE EASIER TO GET AS THE MARKET RECOVERS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL THE HOME BUILDING INDUSTRY WHICH HAS BEEN IN A CHOKEHOLD THE PAST THREE YEARS BECAUSE OF THE CREDIT CRUNCH IS FINALLY BEGINNING TO BREATHE EASIER A GROWING NUMBER OF BANKS HAVE BEGUN AGGRESSIVELY TRYING TO LEND TO BUILDERS ALTHOUGH TERMS ARE STILL TOUGH AND ONLY TOP QUALITY BUILDERS ARE BEING SOUGHT LENDING HAS INCREASED TO THE POINT THAT BUILDERS POLLED RECENTLY BY THE NATIONAL ASSOCIATION OF HOME BUILDERS FAILED TO IDENTIFY CONSTRUCTION FINANCING AS ONE OF THEIR TOP 10 CRITICAL ISSUES AFTER HAVING DONE SO FOR EACH OF THE PAST TWO YEARS THE CREDIT CRUNCH AS WE HAVE KNOWN IT IS OVER SAID RON FORMBY DIRECTOR OF MARKETING FOR CHOICE HOMESTEXAS INC AN ARLINGTON TEXASBASED BUILDER BANKS ATTRIBUTE THE TURNAROUND PRIMARILY TO STRENGTHENING HOUSING DEMAND IN MANY PARTS OF THE COUNTRY I THINK IT'S JUST MARKET CONDITIONS ARE STARTING TO DICTATE THAT BANKS WILL LOOK AT CONSTRUCTION FINANCING AND RESIDENTIAL PROJECTS AGAIN SAID WALTER KACZMAREK EXECUTIVE VICEPRESIDENT OF COMERICA BANK CALIFORNIA A SAN JOSE CALIF UNIT OF COMERICA INC THAT HAS LONG SOLICITED BUSINESS IN THE GOLDEN STATE AND NOW SAYS IT IS MEETING COMPETITION FROM OTHER BANKS I THINK THE ECONOMY WILL BE THE BENEFICIARY OF THIS OFFICIALS AT NATIONSBANK CORP CHARLOTTE NC SAY THEY ARE SOLICITING BUILDERS IN AREAS OF STRENGTHENING HOUSING MARKETS SUCH AS THE SOUTHEAST THE SOUTHWEST AND THE MIDATLANTIC STATES WE ARE JUST SIMPLY FOLLOWING DEMAND SAID MICHAEL BUCHANAN EXECUTIVE VICE PRESIDENT IN CHARGE OF REAL ESTATE LENDING FOR THE RECENTLY MERGED BANK AT A SAN FRANCISCO CONFERENCE OF WEST COAST BUILDERS LAST WEEK OFFICIALS OF BANK OF AMERICA TOLD BUILDERS THAT THEY TOO WERE INTERESTED IN DOING BUSINESS WE'RE LOOKING FOR PROJECTS THAT MAKE SENSE AND DEVELOPERS THAT HAVE THE CAPACITY TO CARRY THE PROJECT SAID JACK MEYERS GROUP EXECUTIVE VICEPRESIDENT FOR BANK OF AMERICA THE SAN FRANCISCOBASED UNIT OF BANKAMERICA CORP OTHER BANKS KNOWN TO BE SEEKING OUT BUILDERS ARE BANC ONE CORP COLUMBUS OHIO GUARANTY FEDERAL BANK THE DALLASBASED UNIT OF TEMPLEINLAND CORP FIRST INTERSTATE BANK OF CALIFORNIA A UNIT OF FIRST INTERSTATE BANCORP LOS ANGELES AND SIGNET BANKING CORP RICHMOND VA THE SOLICITATIONS ARE BEING MADE FOR BUILDERS IN MOST PARTS OF THE COUNTRY FROM THE SUBURBS OF WASHINGTON DC TO THE SUBURBS OF LOS ANGELES THEIR RENEWED INTEREST IN HOME BUILDING COMES AFTER OVERALL CONSTRUCTION LENDING BY COMMERCIAL BANKS FELL BY MORE THAN 40 SINCE 1989 BANKS HAVE BEEN UNDER PRESSURE FROM REGULATORS AND SHAREHOLDERS TO WORK DOWN REAL ESTATE PORTFOLIOS THAT BECAME BLOATED FROM THE LENDING EXCESSES OF THE 1980S WITH THE PORTFOLIOS COMING UNDER BETTER CONTROL AND THE CLINTON ADMINISTRATION ENCOURAGING REGULATORS TO EASE UP BANKS ARE UNDER LESS PRESSURE TO AVOID REAL ESTATE LENDING AS LONG AS THE LOANS ARE MADE FOR RELATIVELY SAFER INVESTMENTS SUCH AS HOME CONSTRUCTION WE THINK IT HOME BUILDING IS A GROWTH SECTOR AND WILL ALWAYS BE A PART OF THE FABRIC OF THIS COUNTRY JOHN STUART CHIEF LENDING OFFICER FOR GUARANTY FEDERAL SAID BY CAR PHONE AS HE AND ANOTHER BANK EXECUTIVE SPED BETWEEN APPOINTMENTS WITH PROSPECTIVE HOME BUILDER CUSTOMERS IN SOUTHERN CALIFORNIA YESTERDAY THE OTHER EXECUTIVE ROBERT TALKINGTON GUARANTY'S SENIOR VICEPRESIDENT SAID HIS BANK HAS BEEN SOLICITING HOME BUILDING LOANS IN THE RECOVERING TEXAS MARKET BUT IN RECENT MONTHS HAS EXPANDED THE EFFORTS TO ARIZONA AND SOUTHERN CALIFORNIA ALTHOUGH THE CALIFORNIA HOUSING MARKET IS STILL IN THE TANK DEMAND REMAINS STRONG FOR THE LOWERPRICED HOMES THERE THAT GUARANTY AND OTHER BANKERS ARE MOST INTERESTED IN BACKING EARLIER THIS WEEK THE GUARANTY EXECUTIVES HOSTED A DINNER FOR EXECUTIVES OF LEWIS HOMES A BIG BUILDER FROM UPLAND CALIF TO DISCUSS FINANCING SOME NEW PROJECTS THEY MAY DO TWO DEVELOPMENTS FOR US AND MAYBE A THIRD AND THEY PICKED UP THE BILL FOR DINNER SAID A DELIGHTED RANDALL LEWIS EXECUTIVE VICEPRESIDENT OF LEWIS HOMES IN THE STRONG ARIZONA MARKET SMALL HOME BUILDERS MARK AND JULIE HANCOCK SAID THEY WERE CONTACTED ABOUT A MONTH AGO BY OFFICIALS AT BANC ONE WANTING TO BACK A PROJECT FOR THEIR CAMELOT HOMES INC BASED IN SCOTTSDALE ARIZ THEY JUST CONTACTED US OUT OF THE BLUE AND SAID LET'S HAVE LUNCH AND DO BUSINESS' SAID MRS HANCOCK THE COMPANY'S VICE PRESIDENT BANC ONE AGREED TO PROVIDE 59 MILLION IN FINANCING FOR A 155UNIT SUBDIVISION IN SCOTTSDALE SHE SAID RL BROWN PUBLISHER OF THE PHOENIX HOUSING MARKET LETTER SAYS THE SOLICITATION OF BUILDERS IN ARIZONA BEGAN ABOUT SIX MONTHS AGO AND HAS INTENSIFIED IN RECENT WEEKS I GOT A CALL ABOUT 10 MINUTES AGO FROM A GUY AT BOFA BANK OF AMERICA WANTING TO KNOW IF HE COULD GET A LIST OF SMALL BUILDERS MR BROWN SAID IT'S CLEAR THE WORM HAS TURNED BUT THEY ARE STILL GOING AFTER THE MOST CREDITWORTHY BUILDERS IN TEXAS MR FORMBY SAID CHOICE HOMES WAS CONTACTED ABOUT TWO MONTHS AGO BY NATIONSBANK WHOSE PREMERGER PREDECESSOR NCNB FLATLY REJECTED THE BUILDER'S REQUEST FOR MONEY TWO YEARS AGO IT'S JUST IRONIC THAT THE SAME PEOPLE WHO TURNED YOU DOWN BEFORE ARE BACK MR FORMBY SAID NATIONSBANK HE SAID MAY FINANCE A NEW SUBDIVISION IN THE DALLASFORT WORTH AREA FOR ABOUT 100 HOMES BANKS HAVEN'T COMPLETELY OPENED THE SPIGOT THOUGH BANKERS SAY THEY WILL ONLY DO BUSINESS FOR NOW WITH BUILDERS LARGE OR SMALL THAT ENJOY A STRONG CASH POSITION LITTLE DEBT AND A PROVEN TRACK RECORD THESE ARE SCARRED BATTLEWEARY VETERANS WHO HAVE LEARNED THE LESSON JUST LIKE WE DID SAID NATIONSBANK'S MR BUCHANAN BUILDERS ALSO STILL HAVE TO MEET FORMIDABLE LENDING TERMS SUCH AS HAVING TO PUT UP AT LEAST 20 OF THEIR OWN MONEY FOR A CONSTRUCTION LOAN FIVE YEARS AGO BUILDERS COULD PUT UP AS LITTLE AS 5 TO 10 OF THEIR CASH SO THIS ELIMINATES SOME BUILDERS BANKS FINALLY ARE STILL AVOIDING MAKING MANY LOANS TO BUY LAND FOR SPECULATIVE DEVELOPMENT SINCE PRICES HAVE PROVED SO VOLATILE AND SOME BUILDERS DON'T HAVE ACCESS TO LOTS BECAUSE OF GROWING SHORTAGES IN MANY MARKETS WE HAVE BEEN CALLED BY FOUR BANKS WHO SAID THEY WOULD GET US A LOAN TO BUY A LOT AND THEN WOULD LOAN MONEY TO BUILD HOUSES FOR OUR CUSTOMERS SAID MICHAEL T ROSE A BUILDER BASED IN LAUREL MD THEN WE SAY WE CAN'T FIND A LOT BECAUSE OF THE SHORTAGE OF LOTS WHILE HE CAN'T YET BENEFIT FROM THE REOPENED LINES OF CREDIT MR ROSE ADDED HE IS ENCOURAGED BY THE NEW BANKING ATTITUDE A YEAR AGO HE SAID THEY WOULDN'T HAVE RETURNED CALLS SEE RELATED STORY BORROWING COSTS DECLINE FOR MORE COMPANIES BUT DEMAND IS WEAK WSJ JUNE 23 1993 9306230089 930623 SOLECTRON MAY BUY PHILIPS UNIT MILPITAS CALIF SOLECTRON CORP SAID IT IS ENGAGED IN DISCUSSIONS WITH THE BRITISH UNIT OF PHILIPS ELECTRONICS NV TO BUY PHILIPS'S CIRCUIT ASSEMBLY BUSINESS IN DUMFERLINE SCOTLAND TERMS WEREN'T DISCLOSED THE PROPOSED ACQUISITION IS SUBJECT TO EXECUTION OF A FINAL CONTRACT AS WELL AS GOVERNMENT AND REGULATORY APPROVALS SOLECTRON PROVIDES MANUFACTURING SERVICES TO ORIGINALEQUIPMENT MANUFACTURERS 9306230088 930623 LONGVIEW FIBRE TO HALT A MILL LONGVIEW WASH LONGVIEW FIBRE CO SAID THAT BECAUSE OF POOR MARKET CONDITIONS IT WILL HALT PRODUCTION AT ITS LONGVIEW PULP AND PAPER MILL HERE FROM SUNDAY UNTIL JULY 5 THE PLANNED SHUTDOWN IS THE LATEST OF A SERIES OF SPOT PRODUCTION CURTAILMENTS OVER THE PAST YEAR THE FORESTPRODUCTS COMPANY SAID 9306230087 930623 TREASURY PLANS TO SELL 244 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO RAISE 700 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 244 BILLION IN SHORTTERM BILLS TO REDEEM 237 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING SEPT 30 AND DEC 30 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794F82 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794H23 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9306230086 930623 NBA CHAMPIONSHIP SERIES WAS HIGHESTRATED EVER NEW YORK NBC'S COVERAGE OF THE 1993 NATIONAL BASKETBALL ASSOCIATION CHAMPIONSHIP SERIES BETWEEN THE CHICAGO BULLS AND THE PHOENIX SUNS WHICH ENDED SUNDAY WAS THE HIGHESTRATED EVER AC NIELSEN CO SAID THE SERIES WAS WATCHED BY AN AVERAGE 179 OF THE NATION'S 931 MILLION TELEVISION HOMES AND 33 OF THE AVAILABLE TV AUDIENCE OVER SIX GAMES ACCORDING TO NIELSEN FIGURES NBC IS A UNIT OF GENERAL ELECTRIC CO THE PREVIOUS HIGH WAS SET WITH THE 1987 FINALS BETWEEN THE LOS ANGELES LAKERS AND BOSTON CELTICS WHICH DREW 159 OF TOTAL TV HOMES AND 32 OF THE AUDIENCE WATCHING TV GAME 6 ON SUNDAY WAS THE SECONDHIGHESTRATED NBA BROADCAST EVER BEHIND GAME 7 OF THE 1988 FINALS BETWEEN THE DETROIT PISTONS AND THE LAKERS SUNDAY'S GAME WHICH WAS ALSO THE SECOND MOSTWATCHED SHOW OF THE WEEK BEHIND SUNDAY'S POSTGAME SPECIAL DREW 203 OF TV HOMES AND 39 OF THE AUDIENCE GAMES 4 AND 5 OF THIS YEAR'S SERIES ALSO GARNERED RESPECTIVELY THE THIRDHIGHEST AND SIXTHHIGHEST RATINGS FOR NBA TELECASTS EVER 9306230085 930623 CHIRONORTHO TEST ADVANCES RARITAN NJ CHIRON CORP AND ORTHO DIAGNOSTIC SYSTEMS INC A UNIT OF JOHNSON & JOHNSON SAID A SUPPLEMENTAL TEST TO DETECT THE PRESENCE OF HEPATITIS C VIRUS ANTIBODIES IN HUMAN BLOOD RECEIVED A PRODUCT LICENSE FROM THE FOOD AND DRUG ADMINISTRATION CHIRON BASED IN EMERYVILLE CALIF IS THE TEST'S MANUFACTURER AND ORTHO IS THE DISTRIBUTOR THE COMPANIES SAID THE COMPANIES SAID THE NEWLY LICENSED TEST CALLED CHIRON RIBA HCV 20 STRIP IMMUNOBLOT ASSAY IS INTENDED AS AN ADDITIONAL MORE SPECIFIC TEST FOR SPECIMENS FOUND TO BE REACTIVE IN HEPATITIS C VIRUS ANTIBODY SCREENING PROCEDURES THE COMPANIES SAID CHIRON RIBA HCV 20 IS THE THIRD SUCCESSFUL HEPATITIS C TESTING SYSTEM RESULTING FROM THE COLLABORATION OF CHIRON AND ORTHO 9306230084 930623 CLINTON'S RUSSIANAID PLAN IS TAKING SHAPE SLOWLY WASHINGTON TREASURY SECRETARY LLOYD BENTSEN ACKNOWLEDGED THAT THE US IS HAVING TROUBLE GETTING OTHER COUNTRIES TO CONTRIBUTE TO ITS PROPOSED 4 BILLION FUND TO PRIVATIZE RUSSIA'S MAJOR STATE ENTERPRISES IT WOULD BE VERY DIFFICULT TO ACHIEVE THE 4 BILLION GOAL MR BENTSEN SAID YESTERDAY AFTER A SPEECH HERE US OFFICIALS SAY THEY STILL HOPE TO REACH AGREEMENTS WITH OTHER COUNTRIES ON A SCALEDBACK PRIVATIZATION FUND SO IT CAN BE UNVEILED IN EARLY JULY AT TOKYO'S GROUP OF SEVEN SUMMIT A MEETING OF THE SEVEN LEADING INDUSTRIALIZED NATIONS THE US FIRST RAISED THE IDEA OF THE FUND IN APRIL AND SINCE THEN HAS BEEN LOBBYING OTHER COUNTRIES TO CONTRIBUTE REPRESENTATIVES OF GROUP OF SEVEN FINANCE MINISTRIES HAVE WORKED OUT A NUMBER OF DIFFERENCES BUT THEY STILL HAVEN'T COME TO TERMS ON HOW MUCH EACH COUNTRY WILL KICK IN TO PUT THE BEST FACE ON THE LIKELY COMPROMISE US OFFICIALS NOW TALK ABOUT IT AS THE FIRST PHASE OF A BIGGER FUND IN THE MOST AMBITIOUS ELEMENT OF PRESIDENT CLINTON'S PLAN TO AID RUSSIA THE US OFFERED IN APRIL TO PUT UP 500 MILLION FOR THE FUND AND ASKED OTHER COUNTRIES TO COME UP WITH 15 BILLION INTERNATIONAL FINANCIAL INSTITUTIONS WERE TO PROVIDE THE REMAINING 2 BILLION 9306230083 930623 WHO'S NEWS AIR PRODUCTS & CHEMICALS INC AIR PRODUCTS & CHEMICALS INC ALLENTOWN PA JOSEPH J KAMINSKI 54 YEARS OLD CURRENTLY PRESIDENT OF AIR PRODUCTS EUROPE WAS NAMED EXECUTIVE VICE PRESIDENT GASES AND EQUIPMENT SUCCEEDING J ROBERT LOVETT 62 WHO WAS NAMED TO THE NEWLY CREATED POST OF EXECUTIVE VICE PRESIDENT STRATEGIC PLANNING AND TECHNOLOGY JOHN P JONES 42 CURRENTLY GROUP VICE PRESIDENT OF THIS INDUSTRIAL GAS AND CHEMICAL CONCERN'S PROCESS SYSTEMS GROUP SUCCEEDS MR KAMINSKI AS PRESIDENT OF AIR PRODUCTS EUROPE 9306230081 930623 WHO'S NEWS BIORELEASE CORP BIORELEASE CORP SALEM NH R BRUCE REEVES 53 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AND PRESIDENT OF THIS BIOTECHNOLOGY CONCERN HE SUCCEEDS P CALVIN MAYBURY 67 WHO WILL CONTINUE TO SERVE AS A DIRECTOR DR REEVES WHO ALSO WILL CONTINUE TO SERVE AS A DIRECTOR HAD BEEN EXECUTIVE VICE PRESIDENT CHIEF OPERATING OFFICER AND SECRETARY FOR BIORELEASE AS WELL AS PRESIDENT OF THE COMPANY'S OPERATING SUBSIDIARY BIORELEASE TECHNOLOGIES INC 9306230080 930623 MARKETING & MEDIA ADVERTISING DDB DROPS BIG BRISTOL ACCOUNT AFTER A YEAR OF ROCKY RELATIONS BY LAURA BIRD DDB NEEDHAM UNEXPECTEDLY RESIGNED FROM ITS BIG BRISTOLMYERS SQUIBB ACCOUNT DEALING THE FINAL BLOW TO A 24YEAR RELATIONSHIP THAT HAD BEEN UNDER STRAIN FOR AT LEAST A YEAR THE CLIENT AND THE AD AGENCY A UNIT OF OMNICOM GROUP SAID THE PARTING WAS MUTUAL BUT INSIDERS SAID THE RESIGNATION COMES IN THE WAKE OF ROCKY RELATIONS BETWEEN BRISTOLMYERS AND ANDY BERLIN THE AMBITIOUS AND OUTSPOKEN PRESIDENT OF DDB NEEDHAM'S NEW YORK OPERATIONS MR BERLIN WAS KNOWN TO BE GALLED BY BRISTOLMYERS'S PENCHANT FOR PITTING VARIOUS AD AGENCIES IN ITS STABLE AGAINST ONE ANOTHER IN PASSING OUT NEW BUSINESS ACCORDING TO EXECUTIVES WHO HAD BEEN CLOSE TO THE ACCOUNT LAST SEPTEMBER AFTER BRISTOL REJECTED DDB'S WORK ON A NEW EXCEDRIN BRAND AND ASKED OTHER AGENCIES TO COMPETE FOR IT MR BERLIN FIRED OFF A MEMO TO HIS STAFF INSIDERS SAY HIS AIM WAS TO CHEER UP THE AGENCY'S DEMORALIZED RANKS BUT THE EFFORT MAY HAVE BACKFIRED IN THE MISSIVE MR BERLIN ASSERTED THAT BRISTOL DIDN'T REPRESENT A GROWTH OPPORTUNITY AND WENT ON TO OBSERVE THAT THIS POLICY OF CONSTANT CREATIVE SHOOTOUTS IS REMINISCENT IN EFFECT AND TONALITY OF THE SPANISH INQUISITION MR BERLIN'S BLITZKRIEG FOUND ITS WAY INTO THE HANDS OF BRISTOL EXECUTIVES IT ARRIVED BY FAX DDB INSIDERS BELIEVE THAT A RECENTLY FIRED EMPLOYEE DID IT TO EXACT REVENGE ALTHOUGH THE SENDER HASN'T EVER BEEN IDENTIFIED BRISTOL'S BRASS APPARENTLY DIDN'T TAKE KINDLY TO BEING LIKENED TO THE SPANISH INQUISITION AND THE RELATIONSHIP WITH DDB SEEMED TO GET WORSE RECENTLY BOZELL OF NEW YORK GOT THE GOAHEAD TO PRODUCE A NEW EXCEDRIN CAMPAIGN BUT THE ACCOUNT HASN'T YET BEEN OFFICIALLY AWARDED ACCORDING TO EXECUTIVES FAMILIAR WITH THE SITUATION A DDB SPOKESMAN DECLINED TO COMMENT ON THOSE EVENTS MR BERLIN SAID YESTERDAY I PERSONALLY VERY MUCH ENJOYED THE CHALLENGES OF WORKING ON THE BRISTOLMYERS BUSINESS I'M SORRY TO SEE IT END BUT I THINK IT'S IN EVERYONE'S BEST INTERESTS HE DECLINED TO COMMENT ON OBSERVATIONS FROM OTHER EXECUTIVES WHO SAY HE WAS INATTENTIVE ON THE BRISTOL ACCOUNT AND IMPATIENT ABOUT ATTENDING MEETINGS ANDY ISN'T ONE OF THOSE WHITECOLLARED YELLOWTIED TANNED GUYS WHO GETS BRIEFED IN A CLIENT'S LOBBY AND SHOWS UP AT MEETINGS SAYS MARY LOU QUINLAN AN AGENCY EXECUTIVE VICE PRESIDENT WHO HAD WORKED ON BRISTOL'S CLAIROL ACCOUNT HE'S HERE HE'S WORKING WITH CREATIVES AND ACCOUNT PEOPLE HE DOESN'T POSTURE IN FRONT OF CLIENTS BRISTOL'S METHOD AGENCY EXECUTIVES SAY IS TO GIVE AN AGENCY SIX WEEKS TO COMPLETE A GIVEN ASSIGNMENT AND THEN COPYTEST THE RESULTS IN A RESEARCH LAB WHEN THE ADS DON'T TEST WELL THE COMPANY GIVES ITS OTHER AGENCIES A CRACK AT THE ASSIGNMENT CREATING A CONSTANT LEVEL OF UNCERTAINTY BRISTOL DIVVIES UP ITS CONSUMERPRODUCTS ADVERTISING AMONG AT LEAST THREE OTHER AGENCIES INCLUDING BOZELL NEW YORK INTERPUBLIC GROUP'S LAURENCE CHARLES FREE & LAWSON AND WPP GROUP'S J WALTER THOMPSON THOSE SHOPS HAVE BEEN CONTENDING FOR THE EXCEDRIN ACCOUNT ALONG WITH SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES INDUSTRY EXECUTIVES BELIEVE BRISTOL DECLINED TO COMMENT ON ITS AGENCY RELATIONS AND PRACTICES DDB IS GIVING UP AN ESTIMATED 17 MILLION IN COMBINED BILLINGS FOR BRANDS INCLUDING EXCEDRIN EXCEDRIN PM THERAPEUTIC MINERAL ICE AND SALON PRODUCTS FROM BRISTOL'S CLAIROL DIVISION DDB WILL CONTINUE TO WORK FOR BRISTOL UNTIL IT REASSIGNS THE BRANDS THE END OF THE RELATIONSHIP COMES AS MR BERLIN HAS HIT A ROUGH SPOT ONE YEAR AFTER TAKING OVER DDB'S NEW YORK OFFICE MR BERLIN COFOUNDER OF OMNICOM GROUP'S SAN FRANCISCO UNIT GOODBY BERLIN & SILVERSTEIN PARACHUTED INTO THE NEW YORK OFFICE IN MAY OF LAST YEAR ON A MISSION TO REVIVE ITS FORTUNES ALTHOUGH THE FLAGSHIP OPERATIONS WERE WELL KNOWN FOR CAMPAIGNS FOR MICHELIN TIRES SEAGRAM SPIRITS AND THE NEW YORK STATE LOTTERY DDB NEW YORK HAD RECENTLY LOST THE WEIGHT WATCHERS ACCOUNT AND HADN'T WON ANY NEW BUSINESS IN YEARS MR BERLIN'S CHARISMA AND BUSINESS SAVVY WERE SEEN AS JUST WHAT THE DOCTOR ORDERED BUT SINCE HIS ARRIVAL MR BERLIN HAS SPENT MORE TIME PUTTING OUT BRUSH FIRES THAN MAKING RAIN AGENCY INSIDERS CREDIT HIM WITH SAVING SEVERAL IMPORTANT ACCOUNTS INCLUDING THE BIG VOLKSWAGEN BUSINESS BUT HIS GLIB MANNER HAS ALSO RUBBED SOME AGENCY AND CLIENT EXECUTIVES THE WRONG WAY DDB ONCE HAD MORE THAN 30 MILLION IN BILLINGS FROM BRISTOLMYERS BUT THESE HAVE STEADILY DIMINISHED OVER THE PAST YEAR AND A HALF BRISTOL RECENTLY MOVED AN ESTIMATED 14 MILLION IN CLAIROL BILLINGS FROM DDB TO J WALTER THOMPSON AND THE AGENCY MISSED OUT WHEN BRISTOL RECENTLY CREATED EXTENSIONS OF THE EXCEDRIN BRAND SUCH AS EXCEDRIN IB WHICH WENT TO BOZELL EARLY LAST YEAR AND EXCEDRIN DUAL WHICH WENT TO LCF&L BRISTOL'S CLAIROL UNIT WAS A FOUNDING CLIENT OF THE OLD DOYLE DANE BERNBACH THE VENERABLE AGENCY THAT WAS MERGED WITH THE OLD NEEDHAM HARPER & STEERS TO FORM DDB NEEDHAM IN 1986 THE AGENCY HAD BEEN HANDLING THE EXCEDRIN BUSINESS SINCE THE MID1980S AS A GROUP OF NEW GOLF MAGAZINES PREPARES TO LAUNCH TIME WARNER INC'S SPORTS ILLUSTRATED IS LOOKING TO PLAY THROUGH AS THE COUNTRY'S LARGEST SPORTS MAGAZINE SPORTS ILLUSTRATED PLANS TO PUBLISH A SPECIAL GOLF EDITION FOR 400000 SUBSCRIBERS WHO ARE REGULAR GOLFERS BEGINNING IN JANUARY 1994 THE EDITORS AND WRITERS OF SPORTS ILLUSTRATED WILL PRODUCE A TARGETED EDITION OF THE WEEKLY MAGAZINE FOR DUFFERS AND SCRATCH PLAYERS ALIKE EACH SPECIAL ISSUE WILL CARRY EIGHT TO 12 ADDITIONAL PAGES OF GOLF COVERAGE ABOVE AND BEYOND THE TITLE'S REGULAR GOLF REPORTING AS WELL AS GOLF INSTRUCTION WHICH IS THE MAINSTAY OF THE LARGEST GOLF MAGAZINES THE SECTION WILL FEATURE WEEKLY UPDATES OF THE PRO GOLFERS' TOUR SENIOR PRO TOUR AND LADIES PRO TOUR THE SPECIAL EDITION WILL PUBLISH WEEKLY DURING GOLF'S PRIME SEASON FROM JANUARY THROUGH THE END OF AUGUST IT GOES MONTHLY FROM SEPTEMBER THROUGH DECEMBER ADVERTISERS WILL BE OFFERED SPECIAL ISSUES SUCH AS A SEASON PREVIEW WITH A LIST OF TELEVISION COVERAGE AND AN EQUIPMENT GUIDE ISSUE SEVERAL MEMBERS OF CONGRESS ARE INTRODUCING A BILL TODAY DESIGNED TO KEEP SOME ADS OUT OF OUTER SPACE LEGISLATORS AND LOBBYISTS CREATED THE BILL WHICH CALLS FOR THE SPACE ADVERTISING PROHIBITION ACT OF 1993 IN RESPONSE TO A MARKETING FIRM'S CLAIMS THAT BY 1996 COMPANIES WILL BE ABLE TO PUT THEIR LOGOS ON MILELONG BY HALFMILEHIGH MYLAR BULLETIN BOARDS THAT WOULD APPEAR AS LARGE AS A FULL MOON AND AS BRIGHT OR BRIGHTER TO SPECTATORS ON EARTH KAREN BROWN OF THE CENTER FOR THE STUDY OF COMMERCIALISM WHICH WORKED ON THE LEGISLATION SAID THE ORGANIZATION OPPOSES ALL SPACE ADVERTISING BUT FOCUSED ON SPACE BILLBOARD ADVERTISING BECAUSE THE CONCEPT IS SO APPALLING REPRESENTATIVES FOR ATLANTABASED SPACE MARKETING INC THE COMPANY THAT ANNOUNCED THE CONCEPT OF SPACE BILLBOARDS EARLIER THIS YEAR COULDN'T BE REACHED FOR COMMENT WHO'S NEWS GREY ADVERTISING INC NAMED MILTON WEINSTOCK EXECUTIVE VICE PRESIDENT OF ACCOUNT MANAGEMENT MR WEINSTOCK WHO WAS SENIOR VICE PRESIDENT WILL CONTINUE TO HEAD GREY'S ESTIMATED 20 MILLION DANNON ACCOUNT IRISH SPRING COLGATEPALMOLIVE MOVED ITS ACCOUNTS FOR IRISH SPRING SOAP AND THE NEW LINE OF IRISH SPRING DEODORANTS FROM YOUNG & RUBICAM NEW YORK TO FOOTE CONE & BELDING COMMUNICATIONS' FCB/LEBER KATZ NEW YORK THE ACCOUNTS WHICH ARE ESTIMATED AT 8 MILLION AND 3 MILLION WERE TRANSFERRED TO FCB AS PART OF A LARGER MOVE BY COLGATEPALMOLIVE TO CONSOLIDATE THE COMPANY'S PERSONAL CARE BUSINESSES IN NEW YORK UPFRONT LEO BURNETT USA AND D'ARCY MASIUS BENTON & BOWLES ARE THE FIRST AGENCIES TO MAKE UPFRONT PRIMETIME DEALS WITH THE NETWORKS FOR THE 199394 TV SEASON AS TWO OF THE BIGGEST PRIMETIME PROGRAMMING BUYERS THEY SECURED DEALS AT ABOUT A 3 MARKUP OF LAST YEAR'S RATE AS NETWORK OFFICIALS FORECASTED ONLY A SLIGHT INCREASE IN PRIMETIME SALES FROM ABOUT 36 BILLION TO 37 BILLION 9306230079 930623 INSIDE TRACK JAMESWAY INSIDERS SOLD BEFORE DISCLOSURE OF PROBLEMS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL THREE INSIDERS AT JAMESWAY CORP SOLD MOST OF THEIR HOLDINGS IN THE DISCOUNT DEPARTMENTSTORE CHAIN ONLY WEEKS BEFORE THE COMPANY DISCLOSED IT WAS SUFFERING FROM SERIOUS FINANCIAL DIFFICULTIES ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS THAT DISCLOSURE SENT JAMESWAY'S ALREADY BATTERED STOCK INTO A TAILSPIN THE INSIDER SALES AS WELL AS EARLIER OPTIMISTIC PREDICTIONS ABOUT THE COMPANY'S OUTLOOK TRIGGERED A CLASSACTION COMPLAINT IN A US DISTRICT COURT IN NEW JERSEY THE SECAUCUS NJ COMPANY SAID FOLLOWING THE CLOSE OF TRADING JUNE 14 THAT IT WAS EVALUATING ALTERNATIVES IN ORDER TO RESOLVE LIQUIDITY DIFFICULTIES AND THAT IT RETAINED AN INVESTMENT BANKING FIRM TO EXPLORE VARIOUS OPTIONS INCLUDING AN INFUSION OF OUTSIDE EQUITY A REFINANCING OR REORGANIZATION JAMESWAY SAID AT THE TIME THAT ITS TRADE VENDORS HAD SHARPLY REDUCED THE AMOUNT OF CREDIT EXTENDED AND IN SEVERAL INSTANCES HAD REFUSED TO SHIP GOODS IN A TELEPHONE INTERVIEW JAMESWAY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER ARLIE G LAZARUS SAID THE COMPANY IS CONTINUING TO EXPLORE ALL ALTERNATIVES INCLUDING FILING FOR CHAPTER 11 PROTECTION FROM CREDITORS WE HAVE NOT DECIDED ON ANY OPTION YET HE SAID DECLINING TO ELABORATE ANALYSTS SAY JAMESWAY WHICH HAS SUFFERED FROM A CREDIT CRUNCH STEMMING FROM WIDENING OPERATING LOSSES LAST YEAR AND THIS YEAR MAY BE FORCED INTO BANKRUPTCY PROCEDINGS I GIVE THEM A 5050 CHANCE OF SURVIVAL SAID EDWARD JOHNSON AN ANALYST WITH JOHNSON REDBOOK SERVICE A DIVISION OF BROKERAGE LYNCH JONES & RYAN MR JOHNSON SAID JAMESWAY RAN INTO RECURRING LIQUIDITY PROBLEMS AT A TIME WHEN IT WAS TRYING TO MODERNIZE ITS STORES AND IMPROVE ITS PRODUCT MIX WITH A GROWING EMPHASIS ON HIGHERMARGIN APPAREL ITEMS BUT WITH JAMESWAY UNABLE TO PAY SUPPLIERS ON TIME THOSE SUPPLIERS HAVE REFUSED TO SHIP PARTLY OUT OF CONCERN THAT THE COMPANY WILL FILE FOR BANKRUPTCY PROTECTION AND HAVE HELPED PUSH THE CONCERN INTO A DEEPENING FINANCIAL CRISIS SINCE THE JUNE 14 ANNOUNCEMENT INVESTORS HAVE POUNDED JAMESWAY'S SHARES ON THE NEW YORK STOCK EXCHANGE THE STOCK WHICH CLOSED AT 2125 ON JUNE 14 BEFORE THE ANNOUNCEMENT FELL 625 CENTS TO 625 CENTS ON HEAVY VOLUME YESTERDAY THE SHARP SKID IN COMPANY SHARES FOLLOWS BY FOUR TO SIX WEEKS THE HEAVY SALES BY INSIDERS SEC FILINGS SHOW THAT JAMESWAY VICE PRESIDENT JERRY FINESTONE SOLD 8800 SHARES OR 86 OF HIS HOLDINGS ON MAY 25 AT 263 A SHARE MR FINESTONE DIRECTOR OF THE CHAIN'S MENSWEAR DIVISION SAID IN A TELEPHONE INTERVIEW THAT HIS SALES HIS LARGEST EVER WERE FOR STRICTLY PERSONAL REASONS I'M TRYING TO BUY A HOME THAT'S MY ONLY INTENT AND NOTHING ELSE HE SAID THAT HE KNEW ABSOLUTELY NOTHING AT ALL ABOUT MOUNTING PROBLEMS AT THE COMPANY AT THE TIME OF HIS SALES JAMESWAY DIRECTOR ROBERT S BARGER SOLD 38172 SHARES BETWEEN APRIL 23 AND MAY 5 AT AN AVERAGE PRICE OF 262 A SHARE SEC DATA SHOW THE SALES LEAVE MR BARGER WITH 1000 SHARES IN THE DISCOUNT CHAIN HE ALSO HAD SOLD 10000 SHARES IN THE COMPANY AT 325 ON FEB 1 ACCORDING TO SEC FILINGS MR BARGER COULDN'T BE REACHED FOR COMMENT DESPITE REPEATED CALLS TO JAMESWAY AND TO HIS HOME THE FILINGS ALSO SHOW THAT PETER HOLLIS JAMESWAY'S FORMER PRESIDENT SOLD 1990 SHARES AT 250 ON MAY 12 THE SALE LEFT HIM WITH 10 SHARES IN THE COMPANY MR HOLLIS RESIGNED APRIL 23 TO PURSUE OTHER INTERESTS AND AT THAT TIME AGREED TO CONTINUE AS AN ADVISER TO THE COMPANY THROUGH JANUARY 1994 IN A TELEPHONE INTERVIEW MR HOLLIS SAID I SOLD THE STOCK FOR ONE PRINCIPLE REASON I HAD LEFT THE COMPANY I SOLD WITHIN A COUPLE OF WEEKS OF MY LEAVING HE POINTED OUT THAT HE HAD PURCHASED THE SHARES IN FEBRUARY THE JUNE 14 ANNOUNCEMENT WAS THE FIRST TIME JAMESWAY SAID PUBLICLY THAT IT WAS EXPERIENCING LIQUIDITY PROBLEMS ALTHOUGH IT ACKNOWLEDGED IN AN APRIL SEC FILING THAT THE COMPANY HAS EXPERIENCED SOME RESTRICTION OF TRADE CREDIT OVER THE PAST TWO YEARS THE OPERATOR OF 108 DISCOUNT DEPARTMENT STORES IN SEVEN MIDATLANTIC STATES HAD A LOSS OF 8 MILLION OR 58 CENTS A SHARE FOR ITS FISCALFIRST QUARTER ENDED MAY 1 THE DEFICIT WIDENED FROM A YEAREARLIER LOSS OF 34 MILLION OR 24 CENTS A SHARE ON A 6 DECLINE IN STORE SALES THE COMPANY SAID THE LOWER SALES REFLECTED THE IMPACT OF SEVERE WEATHER IN FEBRUARY AND MARCH AND A TEMPORARY INTERRUPTION IN THE FLOW OF MERCHANDISE WHILE THE EXTENSIONS OF ITS CREDIT AGREEMENTS WERE IN NEGOTIATION IN DECEMBER JAMESWAY SAID IT WAS CLOSING 13 UNPROFITABLE STORES IN THE CLASSACTION COMPLAINT FILED LAST WEEK A GROUP OF JAMESWAY SHAREHOLDERS ALLEGE THAT CERTAIN JAMESWAY OFFICERS AND DIRECTORS INCLUDING MR HOLLIS FAILED TO ALERT SHAREHOLDERS TO MOUNTING FINANCIAL PROBLEMS AND INSTEAD ATTEMPTED TO REASSURE JAMESWAY SHAREHOLDERS THAT THE COMPANY WOULD SOON RETURN TO PROFITABILITY MR HOLLIS DECLINED TO COMMENT ON ALLEGATIONS MADE IN THE COMPLAINT THE COMPLAINT ALLEGES THAT AS A RESULT OF MATERIAL MISREPRESENTATIONS AND OMISSIONS SHAREHOLDERS BOUGHT STOCK AT ARTIFICIALLY INFLATED PRICES AND IN A FALSE MARKET CLIMATE CREATED BY DEFENDANTS THE PLAINTIFFS ALSO ALLEGE THAT THE DEFENDANTS INCLUDING BOTH MR HOLLIS AND MR BARGER SOLD SHARES WHILE IN POSSESSION OF MATERIAL UNDISCLOSED INFORMATION DEFENDANTS PROFESSED CONFIDENCE IN JAMESWAY'S PROSPECTS FOR PROFITABILITY IN FISCAL 1993 WAS BELIED BY THEIR CONDUCT IN RIDDING THEMSELVES OF THEIR JAMESWAY HOLDINGS THE COMPLAINT ALLEGES MR LAZARUS NAMED CHAIRMAN AND CHIEF EXECUTIVE ON APRIL 23 FOLLOWING THE DEATH OF CHAIRMAN AND CHIEF EXECUTIVE HERBERT FISHER AND THE RESIGNATION OF MR HOLLIS SAID HE WAS CONFIDENT THAT THE COMPANY HAS COMPLIED WITH SEC RULES ON DISCLOSURE WE BELIEVE THE COMPANY HAS GIVEN THE PROPER RELEASES HE SAID HE ADDED THAT HE HAD FIRST LEARNED OF THE INSIDER SALES MONDAY BARRY ROCKLAND THE CHIEF FINANCIAL OFFICER SAID IN A RELATED INTERVIEW I BELIEVE THAT WE MADE ADEQUATE DISCLOSURE ON A TIMELY BASIS 9306230078 930623 TECHNOLOGY NYNEX CORP TO SELL BRITISH SOFTWARE UNIT TO ACT GROUP PLC WHITE PLAINS NY NYNEX CORP SAID IT AGREED TO SELL A BRITISH SOFTWARE SUBSIDIARY TO ACT GROUP PLC FOR 1403 MILLION THE REGIONAL BELL TELEPHONE COMPANY SAID THE SALE OF BIS GROUP LTD SHOULD BE COMPLETED IN JULY THE COMPANY SAID IT EXPECTS TO BOOK A GAIN FROM THE TRANSACTION BUT THAT ITS NET EFFECT ON EARNINGS IS UNCERTAIN NYNEX SAID IT IS SELLING BIS TO CONCENTRATE ON ITS CORE TELECOMMUNICATIONS BUSINESSES THE COMPANY BOUGHT BIS IN 1987 AT A TIME WHEN THE BABY BELLS WERE LOOKING BEYOND THE MATURE US TELEPHONE MARKET FOR OPPORTUNITIES IN EUROPE BUT WHEN NYNEX TOOK AN AFTERTAX RESTRUCTURING CHARGE OF 550 MILLION IN THE FOURTH QUARTER OF 1991 IT DECIDED TO PARE DOWN OPERATIONS INCLUDING SELLING OFF PORTIONS OF BIS BIS IS A MAKER OF FINANCIAL SOFTWARE PRODUCTS INCLUDING THE MIDAS SOFTWARE SYSTEM FOR BANKING AND PROVIDES INFORMATION SERVICES TO GOVERNMENT UTILITY AND FINANCE SECTORS ACT LOCATED IN BIRMINGHAM ENGLAND SPECIALIZES IN SOFTWARE FOR INTERNATIONAL FINANCE HEALTH CARE AND GOVERNMENTAL MARKET SECTORS 9306230077 930623 COMARCO CACI MERGER AGREEMENT MEETS OBJECTIONS BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL ANAHEIM CALIF COMARCO INC AND CACI INTERNATIONAL INC SAID A SHAREHOLDER'S OBJECTION DERAILED THEIR AGREEMENT TO MERGE AND THAT THE TWO COMPANIES ARE DISCUSSING WHETHER THEY CAN REACH A NEW AGREEMENT AS REPORTED THE TWO COMPANIES SIGNED A LETTER OF INTENT IN APRIL TO MERGE IN AN ALLSTOCK TRANSACTION PRODUCING A NEW COMPANY WITH COMBINED REVENUE OF MORE THAN 220 MILLION DON M BAILEY COMARCO'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW THAT OKABENA PARTNERSHIP K OF MINNEAPOLIS WHICH OWNS 72 OF COMARCO'S 52 MILLION SHARES OUTSTANDING OPPOSES THE METHOD OF ACCOUNTING UNDER WHICH THE MERGER WAS TO TAKE PLACE COMARCO AND CACI HAD PLANNED TO USE POOLING OF INTEREST ACCOUNTING WHICH COMBINES BOTH COMPANIES' BALANCE SHEETS AND DOESN'T REVALUE ASSETS INSTEAD OF PURCHASE ACCOUNTING WHICH LEAVES GOODWILL ON THE BOOKS COMARCO AND CACI FEARED THAT OKABENA WOULD FILE IN CALIFORNIA STATE COURT FOR DISSENTERS' RIGHTS IF THE TRANSACTION PROCEEDED EXECUTIVES OF BOTH COMARCO AND CACI SAID DISSENTERS' RIGHTS LAWS VARY FROM STATE TO STATE BUT GENERALLY MANDATE THAT SHAREHOLDERS WHO OBJECT TO A PROPOSED TRANSACTION MAY HAVE THEIR SHARES REVALUED IN COURT TYPICALLY COURTS WILL REVALUE THE SHARES AND IN SOME CASES COMPEL THE COMPANY TO REPURCHASE THEM TOM GARRETT OUTSIDE COUNSEL FOR OKABENA SAID THE PARTNERSHIP HAD STATED IN A RECENT SECURITIES AND EXCHANGE COMMISSION FILING THAT IT WASN'T FAVORABLY INCLINED TO THE PROPOSED MERGER HE WOULDN'T COMMENT ON WHETHER OKABENA DISAPPROVED OF THE ACCOUNTING METHOD BUT SAID HE WASN'T AWARE OF ANY INTENTION ON OKABENA'S PART TO FILE FOR DISSENTERS' RIGHTS MR BAILEY HOWEVER SAID OKABENA DEFINITELY TOLD HIM THAT THEY REGARDED DISSENTERS' RIGHTS AS AN OPTION THEY SAID THEY UNDERSTOOD IT WAS SOMETHING THEY COULD DO HE SAID EXERCISE OF DISSENTERS' RIGHTS WOULD DRAIN CASH AND TANGIBLE NET WORTH FROM COMARCO SAID SAMUEL R STRICKLAND EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CACI THE NEW COMPANY WOULDN'T HAVE THE COMBINED FINANCIAL STRENGTH WE ENVISIONED BECAUSE COMARCO WOULD HAVE TO DO A LARGE BUYBACK COMARCO IS A PROVIDER OF COMPUTER SYSTEMS HARDWARE AND SOFTWARE PRODUCTS AND SERVICES CACI BASED IN ARLINGTON VA IS AN INFORMATION SYSTEMS AND HIGHTECHNOLOGY SERVICES CONCERN THE COMPANIES SAID IN A JOINT NEWS RELEASE THAT THEY EXPECT TO DECIDE BY JUNE 30 WHETHER THEY CAN REACH AN ALTERNATE AGREEMENT IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY COMARCO CLOSED AT 5375 UP 25 CENTS AND CACI CLOSED AT 425 DOWN 625 CENTS 9306230076 930623 BANK OF CANADA'S RATE FALLS TO A 20YEAR LOW OTTAWA THE BANK OF CANADA'S BANK RATE DECLINED YESTERDAY TO ITS LOWEST LEVEL IN 20 YEARS DROPPING TO 488 FROM 494 THE RATE DECLINE HAS RESULTED FROM CANADA'S SLOW ECONOMIC RECOVERY AND FROM A DROP IN INFLATION TO ITS LOWEST LEVEL IN 30 YEARS THE SEASONALLY ADJUSTED CONSUMER PRICE INDEX DECLINED IN MAY FOR THE SECOND TIME THIS YEAR DROPPING 02 FROM APRIL THE BANK OF CANADA'S FLOATING BANK RATE REFLECTS MOVEMENTS IN SHORTTERM INTEREST RATES IT IS THE CHARGE THE CENTRAL BANK LEVIES ON ITS LOANS TO FINANCIAL INSTITUTIONS THE RATE IS SET EACH TUESDAY AT ONEQUARTER OF A PERCENTAGE POINT ABOVE THE AVERAGE YIELD ON THREEMONTH TREASURY BILLS AT THE WEEKLY AUCTION OF BILLS 9306230075 930623 WHO'S NEWS LCI INTERNATIONAL INC LCI INTERNATIONAL INC DUBLIN OHIO DUWAYNE J PETERSON 60 YEARS OLD PRESIDENT OF DUWAYNE PETERSON ASSOCIATES A PASADENA CALIF CONSULTING FIRM SPECIALIZING IN MANAGEMENT OF INFORMATION TECHNOLOGY WAS ELECTED TO THE BOARD OF THIS TELECOMMUNICATIONS CONCERN THE ACTION INCREASES THE COMPANY'S BOARD TO SEVEN MEMBERS LCI PROVIDES VOICE DATA AND VIDEO TRANSMISSION SERVICES TO BUSINESS AND RESIDENTIAL CUSTOMERS 9306230074 930623 BUSINESS BRIEF NOVACARE INC DEFINITIVE ACCORD IS SIGNED FOR ACQUISITION OF A FIRM NOVACARE INC KING OF PRUSSIA PA SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE REHABILITATION HOSPITAL CORP OF AMERICA FOR 51 MILLION INCLUDING ASSUMPTION OF DEBT UNDER THE TERMS OF THE AGREEMENT NOVACARE WILL PAY ABOUT 31 MILLION IN CASH AND WILL PAY DOWN INVESTOR DEBT AND REDEEM PREFERRED STOCK TOTALING ABOUT 20 MILLION THE TRANSACTION IS EXPECTED TO CLOSE EARLY NEXT MONTH NOVACARE IS A LEADING PROVIDER OF MEDICAL REHABILITATION SERVICES CLOSELY HELD REHABILITATION HOSPITAL ALSO BASED IN KING OF PRUSSIA PROVIDES REHABILITATION SERVICES THROUGH INPATIENT HOSPITALS AND OUTPATIENT CLINICS 9306230073 930623 BUSINESS BRIEF WESTERN RESOURCES INC KANSAS UTILITY NEGOTIATES SALE OF NATURALGAS ACCOUNTS WESTERN RESOURCES INC SAID IT IS NEGOTIATING TO SELL ABOUT HALF OF ITS NATURALGAS UTILITY OPERATIONS TO SOUTHERN UNION CO AND ONEOK INC WESTERN RESOURCES SAID SOUTHERN UNION A NATURALGAS DISTRIBUTION COMPANY BASED IN AUSTIN TEXAS WANTS TO BUY ITS OPERATIONS IN MISSOURI ONEOK AN ENERGY COMPANY BASED IN TULSA WANTS TO BUY WESTERN RESOURCES' GAS UTILITY OPERATIONS IN EASTERN KANSAS AND IN OKLAHOMA WESTERN RESOURCES AN ELECTRIC AND GAS UTILITY BASED IN TOPEKA KAN SAID THE PROPERTIES FOR SALE MAKE UP ABOUT 50 OF ITS GAS UTILITY CUSTOMER BASE OR ABOUT 500000 ACCOUNTS THE COMPANY ALSO HAS 578000 ELECTRIC CUSTOMERS WHOSE ACCOUNTS AREN'T INCLUDED IN THE CURRENT NEGOTIATIONS REVENUE FROM THE GAS ACCOUNTS UP FOR SALE TOTALS ABOUT 412 MILLION A YEAR OR 27 OF WESTERN RESOURCES' TOTAL ACCORDING TO A SPOKESWOMAN SHE SAID THE COMPANY CONSIDERED SELLING THE OPERATIONS ONLY AFTER BEING APPROACHED BY PROSPECTIVE BUYERS 9306230072 930623 WHO'S NEWS SOFAMOR/DANEK GROUP INC SOFAMOR/DANEK GROUP INC MEMPHIS TENN DR YVES PAUL COTREL AND HIS SON PHILIPPE COTREL WERE NAMED DIRECTORS OF THIS MAKER OF SPINAL IMPLANT DEVICES DR COTREL 68 YEARS OLD HAD BEEN CHAIRMAN OF SOFAMOR SA AND PHILIPPE COTREL 45 HAD BEEN CHAIRMAN OF SOFAMOR'S MANAGEMENT COMMITTEE BEFORE ITS MERGER INTO DANEK GROUP WAS COMPLETED THIS WEEK THE MERGER INCREASES THE BOARD TO 11 DIRECTORS BUT LEAVES THE COMPANY'S EXECUTIVE MANAGEMENT UNCHANGED 9306230071 930623 HUD CHIEF SEEKS EASING OF RENTSUBSIDY RULES WASHINGTON HENRY CISNEROS SECRETARY OF HOUSING AND URBAN DEVELOPMENT PLANS TO ASK CONGRESS TO PASS LEGISLATION THIS YEAR REVAMPING CERTAIN RENTSUBSIDY RULES IN THE GOVERNMENT'S TROUBLED MULTIFAMILY HOUSING PROGRAMS UNDER THE PROGRAMS HUD INSURES MORTGAGES FOR APARTMENT BUILDINGS AND OTHER PROJECTS THAT OTHERWISE MIGHT NOT GET FINANCING CITING THE BUDGET DEFICIT HOWEVER MR CISNEROS TOLD A SENATE BANKING HOUSING AND URBAN AFFAIRS SUBCOMMITTEE THAT HE WOULDN'T SEEK ADDITIONAL FUNDS TO DEAL WITH THE PROBLEMS NEW AUDITS WARN THAT THE GOVERNMENT COULD SUSTAIN LOSSES OF AS MUCH AS 119 BILLION BECAUSE OF A RISING NUMBER OF POTENTIAL DEFAULTS BY OWNERS OF GOVERNMENTINSURED APARTMENT BUILDINGS MR CISNEROS SAID CHANGING CERTAIN RENTSUBSIDY RESTRICTIONS IS CRUCIAL TO HANDLING ANOTHER ENORMOUS PROBLEM SELLING OFF PROPERTIES OWNED BY HUD BECAUSE OF DEFAULTS AND FORECLOSURES UNDER CURRENT LAW WHEN HUD SELLS AN APARTMENT COMPLEX IT MUST PROVIDE RENT SUBSIDIES FOR 15 YEARS TO KEEP THE UNITS AFFORDABLE FOR LOWINCOME TENANTS BUT SUCH SUBSIDIES ARE COSTLY AND HUD TYPICALLY RECEIVES FROM CONGRESS ONLY A FRACTION OF WHAT IT NEEDS AS A RESULT HOUSING OFFICIALS CONTEND HUD HANGS ON TO PROPERTIES WHILE PAYING MANAGEMENT AND MAINTENANCE COSTS HOUSING OFFICIALS HOPE THAT BY EASING THE RULES THE COST OF SUBSIDIES CAN BE CUT AND PROPERTY SALES CAN BE SPED UP 9306230070 930623 YIELDS ON MOST CDS CHANGE LITTLE IN WEEK NEW YORK YIELDS ON MOST CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED IN THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS INCHED UP TO 273 FROM 272 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS REMAINED AT 481 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS ROSE TO 317 FROM 315 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL TO 465 FROM 507 THE SURVEY SAID ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE CREPT UP TO 283 FROM 282 ON FIVEYEAR JUMBOS THE AVERAGE SLIPPED TO 487 FROM 5 ACCORDING TO BANXQUOTE AMONG OTHER FACTORS THE SURVEY RESULTS REFLECT THE FEDERAL TRUTH IN SAVINGS ACT WHICH TOOK EFFECT MONDAY 9306230068 930623 INTEGRATED RESOURCES FILES NEW PLAN TO LIQUIDATE AMID OFFERS FOR ASSETS THE LIQUIDATION PLAN HOWEVER GOES HEADTOHEAD WITH A JOINT PLAN TO INDIRECTLY BUY THE COMPANY'S ASSETS ALSO FILED YESTERDAY BY AN AFFILIATE OF CHICAGO'S PRITZKER FAMILY AND THE COMMITTEE OF SENIOR CREDITORS STEINHARDT MANAGEMENT CO A PRIVATE INVESTMENT GROUP ALSO HAS FILED A RECENTLY SWEETENED PLAN TO BUY THE ASSETS INTEGRATED HAS BEEN OPERATING UNDER CHAPTER 11 PROTECTION OF THE FEDERAL BANKRUPTCY CODE SINCE FEBRUARY 1990 AFTER BEING UNABLE TO MEET MATURING DEBT OBLIGATIONS ITS MOST VALUABLE ASSETS ARE CONTRACT RIGHTS WHICH EARN INCOME FROM PART OF THE LEASE PAYMENTS FROM BUILDINGS BOUGHT BY INTEGRATED PARTNERSHIPS MANY OF THE CONTRACTS ARE WITH HIGHQUALITY CORPORATE TENANTS INTEGRATED'S LATEST PLAN OFFERS MORE ATTRACTIVE DISTRIBUTIONS TO SENIOR AND GENERAL CREDITORS COMPARED WITH A REORGANIZATION PLAN FILED BY THE COMPANY IN MARCH DETAILS OF THE NEW PLAN WEREN'T IMMEDIATELY AVAILABLE BUT UNLIKE THE PREVIOUS PLAN IT OFFERS SOME PAYMENTS TO JUNIOR DEBTHOLDERS AS WELL AS HIGHER PAYMENTS FOR SENIOR AND GENERAL CREDITORS THE EARLIER PLAN INCLUDED AN OFFER TO PAY SENIOR CREDITORS 59 CENTS FOR EACH DOLLAR OF CLAIMS AND 38 CENTS ON THE DOLLAR TO GENERAL UNSECURED CREDITORS BUT NOTHING TO SUBORDINATED DEBTHOLDERS FRANK GELLER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF INTEGRATED SAID THAT ALTHOUGH THE SENIOR CREDITORS COMMITTEE ARE ENDORSING THE PRITZKER PLAN WE EXPECT CREDITORS TO SEE THE POTENTIAL OF OUR NEW PLAN UNDER THE PLAN FILED BY THE PRITZKER FAMILY'S REAL ESTATE COMPANY PENGUIN GROUP LP AND THE SENIOR CREDITORS COMMITTEE THE SENIOR UNSECURED CREDITORS WOULD RECEIVE 51 CENTS ON THE DOLLAR FOR THEIR 11 BILLION IN DEBT GENERAL UNSECURED CREDITORS WOULD RECEIVE 324 CENTS ON THE DOLLAR AND SUBORDINATED DEBENTURE HOLDERS WOULD RECEIVE TWO CENTS ON THE DOLLAR ALTERNATIVELY SENIOR CREDITORS MAY ELECT TO RECEIVE A LESSER CASH DISTRIBUTION OF 38 CENTS AND AN ADDITIONAL 28 CENTS FROM FUTURE LIQUIDATION PROCEEDS WHILE GENERAL UNSECURED CREDITORS MAY ELECT TO RECEIVE 25 CENTS PLUS AN ADDITIONAL 19 CENTS UPON LIQUIDATION ALL FIGURES ARE PROJECTED THE PROPOSAL ALSO PROVIDES FOR PENGUIN GROUP TO ACQUIRE A MINIMUM 325 IN CLAIMS TO BE HELD IN A CREDITOR'S TRUST AND TO BE PAID THROUGH THE LIQUIDATION OF INTEGRATED'S REMAINING ASSETS THE PRITZKER FAMILY INTERESTS INCLUDE THE HYATT HOTEL CHAIN AND THE MARMON GROUP A CONGLOMERATE OF AT LEAST 60 SEPARATE OPERATING BUSINESSES MR GELLER SAID HEARINGS ON THE PLANS ARE EXPECTED IN ABOUT SIX WEEKS INTEGRATED WHICH HAS BEEN SHEDDING ITS ASSETS TO RAISE CASH HAS BROUGHT IN ABOUT 200 MILLION IN THE PAST 15 MONTHS MR GELLER SAID 9306230067 930623 S&P RATES COLOMBIA DOLLARBASED DEBT AS INVESTMENTGRADE NEW YORK COLOMBIA BECAME THE SECOND NATION IN LATIN AMERICA TO RECEIVE AN INVESTMENTGRADE RATING ON DOLLARDENOMINATED DEBT FROM STANDARD & POOR'S CORP WHICH GAVE CHILE AN INVESTMENTGRADE RATING IN 1992 S&P RATED A 125 MILLION REPUBLIC OF COLOMBIA EURONOTE ISSUE DUE MAY 1998 TRIPLEBMINUS CHILE'S DOLLAR DEBT CARRIES A RATING OF TRIPLEB INVESTMENTGRADE RATINGS GIVE DEVELOPING COUNTRIES SUCH AS COLOMBIA WIDER ACCESS TO FOREIGN CAPITAL MANY LARGE INVESTMENT FUNDS ARE STRICTLY FORBIDDEN FROM INVESTING IN ANY BOND RATED LOWER THAN INVESTMENT GRADE MANY INVESTORS' QUESTIONS HAVE TO DO WITH THE POLITICAL SITUATION IN COLOMBIA GIVEN THE HISTORY OF VIOLENCE ASSOCIATED WITH DRUG TRAFFICKERS AND GUERRILLAS SAID DAVID BEERS A DIRECTOR AT S&P WHILE THESE THINGS CERTAINLY HAVE HAD A NEGATIVE ECONOMIC EFFECT WHAT IMPRESSED US MOST WAS THE RESILIENCE OF DEMOCRATIC INSTITUTIONS HE SAID S&P IS LIKELY TO RATE DEBT DENOMINATED IN COLOMBIAN PESOS SOON 9306230066 930623 DAMON DISCLOSES ANOTHER POSSIBLE BID AS NATIONAL HEALTH BEGINS TENDER OFFER BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL DAMON CORP A MEDICALTESTING CONCERN THAT HAS ACCEPTED A 258 MILLION OFFER TO BE ACQUIRED BY RIVAL NATIONAL HEALTH LABORATORIES INC DISCLOSED THAT ANOTHER POSSIBLE BUYER EXPRESSED SERIOUS INTEREST IN A BUSINESS COMBINATION WITH DAMON AS RECENTLY AS FRIDAY THE POTENTIAL BIDDER WHO WASN'T IDENTIFIED TOLD DAMON THAT IT WAS INTERESTED IN ENTERING INTO IMMEDIATE NEGOTIATIONS FOR AN ALLCASH TRANSACTION AT A SIGNIFICANT PREMIUM TO CURRENT MARKET BUT THAT IT WAS UNWILLING TO INDICATE ANY PRICE RANGE DAMON SAID THE DISCLOSURE CAME IN A SECURITIES AND EXCHANGE COMMISSION FILING RELATED TO NATIONAL HEALTH'S 16ASHARE TENDER OFFER FOR 55 OF DAMON'S SHARES WHICH BEGAN YESTERDAY A YEAR AGO THE SECRET BIDDER CONDITIONALLY HAD PROPOSED A STOCK MERGER WITH DAMON THAT COULDN'T BE COMPLETED BEFORE AUGUST 1993 ACCORDING TO THE SEC FILING MEANWHILE THE STATE OF WISCONSIN INVESTMENT BOARD DAMON'S LARGEST INSTITUTIONAL INVESTOR WITH A 96 STAKE SAID IT OPPOSES NATIONAL HEALTH'S OFFER AS BEING WELL BELOW FAIR VALUE THE FUND PROBABLY WILL ASK OTHER SHAREHOLDERS TO REJECT THE OFFER SAID JOHN NELSON THE FUND'S INVESTMENT DIRECTOR SOME ANALYSTS AGREED THAT NATIONAL HEALTH'S OFFER WAS ON THE LOW SIDE WHILE THE WISCONSIN FUND VALUED DAMON AT NORTH OF 20 A SHARE THE DISCLOSURE OF ANOTHER SUITOR FUELED SPECULATION THAT A HIGHER BID MIGHT YET EMERGE DESPITE CERTAIN TERMS OF THE NATIONAL HEALTH PACT SPECULATION CENTERED ON CORNING INC'S METPATH DIVISION ANOTHER BIG MEDICALTESTING LABORATORY OFFICIALS OF THE CORNING NY CONCERN COULDN'T BE REACHED FOR COMMENT METPATH SEEMS LIKE THE LOGICAL BUYER SAID GLENN REICIN AN OPPENHEIMER & CO ANALYST METPATH MIGHT BE ABLE TO TOP NATIONAL HEALTH'S OFFER BECAUSE METPATH AND DAMON HAVE MANY MORE LABS IN THE SAME CITIES CREATING GREATER POTENTIAL TO CUT COSTS BY CLOSING OVERLAPPING FACILITIES THE ANALYST VALUED DAMON AT BETWEEN 16ASHARE AND 26ASHARE DEPENDING ON THE BUYER IN THE SEC FILING DAMON SAID THAT AMONG THE FACTORS WEIGHED BY ITS DIRECTORS IN UNANIMOUSLY VOTING FOR THE NATIONAL HEALTH DEAL WERE DAMON'S NEARTERM GROWTH AND PROFITABILITY POTENTIAL AND THE SPECTER OF SUBSTANTIAL MEDICARE COST REDUCTIONS DAMON NEEDHAM HEIGHTS MASS ALSO CITED A FAIRNESS OPINION FROM BEAR STEARNS & CO YESTERDAY DAMON SHARES CLOSED AT 15875 UP 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ON MONDAY DAMON SHARES HAD JUMPED 1875 OR 14 AFTER THE OFFER WAS ANNOUNCED THE STOCK OF NATIONAL HEALTH LABS ALSO LISTED ON THE BIG BOARD CLOSED YESTERDAY AT 17875 UP 375 CENTS THE COMBINATION OF SAN DIEGOBASED NATIONAL HEALTH AND DAMON WOULD FORM THE NATION'S SECONDLARGEST MEDICALTESTING COMPANY AFTER INDUSTRY LEADER SMITHKLINE BEECHAM PLC'S LAB UNIT CURRENTLY CORNING'S METPATH UNIT IS NO 2 ANALYSTS SAID YESTERDAY NATIONAL HEALTH BEGAN ITS 16ASHARE OFFER TO BUY 89 MILLION SHARES OF DAMON OR ABOUT 55 OF THE TOTAL OUTSTANDING DAMON SHARES REMAINING OUTSTANDING ARE TO BE SWAPPED LATER FOR NATIONAL HEALTH SHARES THE WISCONSIN FUND IS ONE OF THE NATION'S LARGEST PUBLIC PENSION FUNDS WITH ABOUT 33 BILLION IN ASSETS UNDER MANAGEMENT 9306230065 930623 RESERVE ASSETS ROSE 107 BILLION IN MAY US TREASURY REPORTS WASHINGTON US OFFICIAL RESERVE ASSETS ROSE 107 BILLION IN MAY TO 7671 BILLION THE TREASURY DEPARTMENT SAID LAST MONTH'S RISE COMPARED WITH A 127 BILLION RISE IN RESERVE ASSETS IN APRIL TO 7564 BILLION THE DEPARTMENT SAID THE NATION'S HOLDINGS OF FOREIGN CURRENCIES INCREASED 990 MILLION IN MAY TO 4432 BILLION WHILE ITS GOLD RESERVES DECREASED 1 MILLION TO 1105 BILLION US HOLDINGS OF IMF SPECIAL DRAWING RIGHTS LAST MONTH ROSE 200 MILLION TO 915 BILLION AND ITS RESERVE POSITION AT THE IMF DROPPED 122 MILLION TO 1220 BILLION THE WASHINGTONBASED IMF SUPERVISES A MONEY SUPPLY SUPPORTED BY SUBSCRIPTIONS FROM MEMBER NATIONS TO STABILIZE INTERNATIONAL EXCHANGE AND PROMOTE ORDERLY AND BALANCED TRADE MEMBER NATIONS MAY OBTAIN FOREIGN CURRENCY WHEN NEEDED MAKING IT POSSIBLE TO CORRECT TEMPORARY MALADJUSTMENTS IN THEIR BALANCE OF PAYMENTS WITHOUT CURRENCY DEPRECIATION 9306230064 930623 HOUSE PANEL CLEARS REVAMPED BUDGET THAT FUNDS REDESIGNED SPACE STATION BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE APPROPRIATIONS COMMITTEE ADOPTED A REVAMPED SPACE BUDGET THAT FULLY FUNDS THE CLINTON ADMINISTRATION'S REDESIGNED SPACE STATION BUT DEMANDS LARGE CUTS ELSEWHERE IN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION BY A 3122 MARGIN THE PANEL SHIFTED SUFFICIENT FUNDS TO MEET THE PRESIDENT'S GOAL OF 21 BILLION FOR THE SPACE STATION IN THE YEAR BEGINNING OCT 1 BUT THE SAME AMENDMENT WOULD TAKE AN ESTIMATED 365 MILLION FROM OTHER NASA ACCOUNTS FORCING CUTS FROM THE SHUTTLE PROGRAM AND SETTING THE STAGE FOR THE POSSIBLE TERMINATION OF THE ADVANCED SOLID ROCKET MOTOR PROJECT LATER THIS YEAR THE COMMITTEE VOTE CAME AS THE FULL HOUSE LAST NIGHT APPROVED A 227 BILLION TREASURY AND POSTAL SERVICE BILL THAT FOR THE FIRST TIME IN A DECADE CARRIES NO ABORTION RESTRICTIONS ON FEDERAL HEALTH INSURANCE FOR GOVERNMENT EMPLOYEES ANTIABORTION FORCES MADE NO EFFORT TO CHALLENGE THE MEASURE ADOPTED 263153 BUT THE ISSUE WILL BE REVISITED WHEN LAWMAKERS TAKE UP THE MEDICAID BUDGET THIS MONTH AND APPROPRIATIONS COMMITTEE CHAIRMAN WILLIAM NATCHER D KY WHO WAS CALLED BY PRESIDENT CLINTON IS PRESSING A RELUCTANT WHITE HOUSE TO COME UP WITH SOME COMPROMISES AS FOR THE SPACE STATION THE FULL HOUSE IS SCHEDULED TO VOTE TODAY ON COMPANION NASA LEGISLATION AUTHORIZING THE COSTLY PROJECT THE SHOW OF SUPPORT FROM THE APPROPRIATIONS COMMITTEE YESTERDAY WAS SIGNIFICANT BECAUSE THE SAME PANEL HAS BEEN A BREEDING GROUND FOR OPPOSITION IN THE PAST I BELIEVE WE SHOULD GIVE THE SPACE STATION ANOTHER CHANCE SAID REP LOUIS STOKES D OHIO BUT I REALLY BELIEVE THIS IS THE PROGRAM'S LAST CHANCE AS THE NEW CHAIRMAN OF THE SUBCOMMITTEE OVERSEEING NASA MR STOKESA BLACK LEADER FROM URBAN CLEVELAND IS MORE TYPICAL OF THE DEMOCRATIC CONSTITUENCIES THAT HAVE OPPOSED THE COSTLY STATION PROJECT AND IRONICALLY IT WAS REPUBLICANS WHO MOST BITTERLY PROTESTED THAT 55 MILLION OF THE MONEY FOR THE STATION AND A NEW SPACE TECHNOLOGY INITIATIVE WOULD COME FROM THE REMNANTS OF THE BUSH ADMINISTRATION'S HOMEOWNERSHIP PROGRAM FOR PUBLIC HOUSING TENANTS OR HOPE WE OUGHT TO HAVE HOPE HERE ON EARTH AS WELL AS HOPE UP IN SPACE SAID REP FRANK WOLF R VA THE CHANGING ROLES AND RHETORIC REFLECT NOT ONLY THE CHANGE IN ADMINISTRATIONS BUT ALSO THE UPHEAVAL IN THE COMMITTEE ITSELF AFTER LAST FALL'S ELECTION MR STOKES IS ONLY ONE OF A CROP OF NEW SUBCOMMITTEE CHAIRMEN THIS YEAR AND AMONG THE YOUNGER DEMOCRATS THE RUSH OF POWER HAS OFFERED AN OPPORTUNITY TO WAGE THEIR OWN PERSONAL WARS WITH THE WASHINGTON BUREAUCRACY ONE OF THESE IS REP BOB CARR THE 377 BILLION TRANSPORTATION BILL APPROVED BY THE APPROPRIATIONS PANEL BEARS THE IMPRINT OF THE MICHIGAN DEMOCRAT WHO HEADS THE SUBCOMMITTEE OVERSEEING FEDERAL ROAD TRANSIT AND AVIATION PROGRAMS WITHIN HIGHWAY ACCOUNTS MORE THAN 38 OF THE MORE THAN 300 MILLION SET ASIDE FOR PAROCHIAL PROJECTS IN ONE CASE WOULD GO BACK TO MICHIGAN AND MR CARR'S PERSONAL WARS WITH THE FEDERAL AVIATION ADMINISTRATION AND LONGSTANDING ALLIANCE WITH THE AIRLINE INDUSTRY HAVE A RIPPLE EFFECT THAT IMPACTS MORE BROADLY ON PUBLIC POLICY ANGERED BY AN FAA RULE CURBING THE USE OF CELLULAR PHONES AND LAPTOP COMPUTERS WHEN AIRPLANES ARE STILL ON THE GROUND MR CARR'S BILL WOULD FLATLY PROHIBIT THE AGENCY FROM ENFORCING THE RESTRICTION AND IN A VICTORY FOR AMR CORP'S AMERICAN AIRLINES AND UAL CORP'S UNITED AIRLINES THE MEASURE WOULD BAR THE ADMINISTRATION FROM TAKING AWAY ANY MORE GATES FROM DOMESTIC CARRIERS AT CHICAGO'S O'HARE INTERNATIONAL AIRPORT TO INCREASE THE NUMBER AVAILABLE TO FOREIGN CARRIERS MORE BROADLY THE BILL REFLECTS THE AIRLINE INDUSTRY'S RESENTMENT OF SOCALLED PASSENGER FACILITY CHARGES LEVIED BY LOCAL AIRPORTS AND A FEAR THAT IN AN INCREASING NUMBER OF CASES CITIES OR COUNTIES DIVERT THE RECEIPTS TO EASE THEIR OWN FISCAL PROBLEMS FUNDING FOR FEDERAL GRANTSINAID TO AIRPORTS WOULD BE CUT TO 15 BILLION OR 300 MILLION BELOW THE CURRENT LEVEL AND IN THE SAME VEIN THE MEASURE WOULD USE AIRPORT GRANTS AS AN ENFORCEMENT TOOL OF SORTS TO ENSURE TIGHTER CONTROL OF THE RECEIPTS AND TO FORCE AN END TO THE NETTLESOME PRACTICE BY SOME AIRPORTS OF IMPOSING THE FEES EVEN ON PASSENGERS USING FREQUENTFLYER TICKETS COAST GUARD OPERATING FUNDS WOULD BE CUT BELOW CURRENT LEVELS AND THE LEGISLATIVE REPORT ACCOMPANYING THE BILL IS OFTEN ACERBIC IN CRITIQUING TRANSPORTATION PROGRAMS PARTICULARLY IN AVIATION THE FAA DOUBLEDEALT ME SAID MR CARR NOT HIDING HIS FRUSTRATION WITH THE AGENCY FOR ITS RECORD ON THE RULEMAKING AFFECTING PORTABLE ELECTRONIC DEVICES ON AIRPLANES I'M NOT HAPPY THEY'RE NOT HAPPY I CALLED THEM SEPARATELY A HOUSE APPROPRIATIONS SUBCOMMITTEE MEETING BEHIND CLOSED DOORS VOTED TO KILL FUNDING FOR THE RADIO AND TELEVISION MARTI PROGRAM OF BROADCASTS TO CUBA NEXT YEAR AND THE SENATE LAST NIGHT APPROVED ITS LONGAWAITED VERSION OF A STRIPPEDDOWN SUPPLEMENTAL SPENDING BILL THAT CARRIES MODEST INCREASES IN FUNDING THIS YEAR FOR SMALL BUSINESS ADMINISTRATION LOANS AND SUMMER JOBS FOR TEENAGERS 9306230063 930623 BUSINESS BRIEFS RITE AID CORP'S BID TO ACQUIRE THE ASSETS OF 36 STORES FROM RELIABLE DRUGSTORES INC WAS APPROVED BY THE FEDERAL BANKRUPTCY COURT IN INDIANAPOLIS TIE/COMMUNICATIONS INC IS SEEKING TO ACQUIRE THE 27 OF ITS CANADIAN SUBSIDIARY THAT IT DOESN'T ALREADY OWN FOR 125 CANADIAN DOLLARS 98 US CENTS A SHARE OR ABOUT C28 MILLION RAM MOBILE DATA A JOINT VENTURE OF RAM BROADCASTING AND BELLSOUTH CORP COMPLETED ITS NATIONAL WIRELESS COMMUNICATIONS NETWORK SOUTHERN NATIONAL CORP LUMBERTON NC REACHED AN AGREEMENT IN PRINCIPLE TO MERGE WITH CLOSELY HELD HOME FEDERAL SAVINGS BANK STATESVILLE NC IN A STOCK SWAP VALUED AT 182 MILLION 9306230062 930623 AUTOS MITSUBISHI RESTYLES GALANT TO ANCHOR LINE BY KRYSTAL MILLER STAFF REPORTER OF THE WALL STREET JOURNAL MITSUBISHI MOTORS CORP HAS TRIED HARD TO CRACK THE FAMILY SEDAN MARKET AND ESTABLISH ITSELF AS A FULLLINE PRODUCER IN THE US THE RESULT WE'VE HAD 10 YEARS OF FRUSTRATION CONCEDES RICHARD D RECCHIA HEAD OF MITSUBISHI'S US SALES ARM THIS IS OUR CHANCE TO REALLY GO HE'S REFERRING TO THE REDESIGNED GALANT MIDSIZE SEDAN WHICH MAKES ITS DEBUT JULY 1 SO FAR MITSUBISHI'S MIDSIZE CARS HAVE BEEN NO MATCH FOR THE LIKES OF HONDA MOTOR CO'S ACCORD TOYOTA MOTOR CORP'S CAMRY AND FORD MOTOR CO'S TAURUS BUT MITSUBISHI IS BETTING BIG ON THE GALANT WHICH COMES AT A CRITICAL TIME FOR THE COMPANY ALL JAPANESE AUTO MAKERS ARE ON THE DEFENSIVE IN THE US WITH THE RISING YEN PUSHING UP THEIR PRICES AND THEIR OVERALL MARKET SHARE IS IN DECLINE IN ADDITION MITSUBISHI HAS SOME PROBLEMS OF ITS OWN UNLIKE ITS BIGGER JAPANESE RIVALS AND THE BIG THREE THE AUTO MAKER HAS NO BREADANDBUTTER VEHICLE IT REMAINS A NICHE PLAYER IN THE US MARKET OFFERING SUCH SPECIALIZED VEHICLES AS THE DIAMANTE LUXURY SEDAN AND THE MUSCULAR 3000GT SPORTS CAR ITS TOPSELLING MODEL THE ECLIPSE IS A SPORTY COMPACT COUPE THE TROUBLE IS NICHE PRODUCTS LIKE THE 3000GT TYPICALLY LOSE THEIR APPEAL QUICKLY PEOPLE BUY NICHE PRODUCTS WHEN THEY'RE IN FASHION AND MOVE ON WHEN THEY'RE NOT SAYS SUSAN JACOBS AN AUTO ANALYST WITH JACOBS & ASSOCIATES FORECASTING & STRATEGIC PLANNING IN LITTLE FALLS NJ MITSUBISHI NEEDS A MASS MARKET PRODUCT TO GROUND ITS DEALERS AND THE FRANCHISE INDEED WHILE THE AUTO MAKER'S SALES HAVE CLIMBED 61 FROM A YEAR AGO TO 72331 VEHICLES IN THE FIRST FIVE MONTHS OF THIS YEAR MITSUBISHI IS HARDLY BURNING UP THE TRACK LAST YEAR THE COMPANY SOLD 176900 VEHICLES IN THE US DOWN 73 FROM ITS PEAK IN 1990 MITSUBISHI'S INABILITY TO SIGNIFICANTLY INCREASE SALES HAS DEFLATED THE MORALE OF SOME OF ITS 550 DEALERS SEVERAL HAVE THREATENED TO SUE OVER A FRANCHISE CLAUSE THAT FORBIDS DEALERS TO SELL MITSUBISHI CARS AND OTHER BRANDS UNDER THE SAME ROOF THE DEALERS COMPLAIN THAT MITSUBISHI'S SALES AREN'T STRONG ENOUGH TO SUSTAIN SINGLEFRANCHISE DEALERSHIPS THE NEW GALANT WILL INCREASE SALES AND RESTORE PROFITABILITY TO A LOT OF DEALERS SAYS JOE O'BRIEN CHAIRMAN OF MITSUBISHI'S DEALER COUNCIL IF IT DOESN'T DEALERSHIPS ARE GOING TO BE DUALED OR THE FRANCHISE IS NOT GOING TO BE A VIABLE PLAYER BUT MR RECCHIA SAYS THE AUTO MAKER WON'T BACK DOWN FROM ITS FRANCHISE POLICY BECAUSE ALLOWING DUAL DEALERSHIPS ISN'T THE ANSWER TO THE PROBLEM HE SAYS THAT MOST MITSUBISHI DEALERS ARE SATISFIED AND THAT NO LAWSUITS ARE PENDING AGAINST THE COMPANY FROM ANY OF ITS DEALERS BETWEEN 80 AND 85 OF MITSUBISHI DEALERS ARE PROFITABLE HE SAYS THE GALANT'S SUCCESS IS CRITICAL TO MITSUBISHI'S US MANUFACTURING AMBITIONS TOO THE CAR IS BEING ASSEMBLED IN THE US BECAUSE MITSUBISHI NEEDS RELIEF FROM THE COSTLY SURGE OF THE YEN AGAINST THE DOLLAR AND BECAUSE THE COMPANY'S ASSEMBLY PLANT IN NORMAL ILL NEEDS THE WORK THE PLANT HAS BEEN RUNNING AT ONLY HALF SPEED BUT EVEN THAT HASN'T BEEN ENOUGH TO HOLD DOWN BULGING INVENTORIES WHICH STOOD AT A 150DAY SUPPLY OF UNSOLD CARS AT THE END OF APRIL ACCORDING TO WARD'S AUTOMOTIVE REPORTS AN INDUSTRY TRADE JOURNAL THAT'S MORE THAN TWICE THE INVENTORY LEVEL CONSIDERED IDEAL THE CURVY NEW GALANT ON WHICH MITSUBISHI IS PINNING ITS HOPES SPORTS A 24LITER MULTIVALVE FOURCYLINDER ENGINE THAT'S RATED AT 141 HORSEPOWER EQUAL TO THE STANDARD V6 ON THE FORD TAURUS THE REDESIGNED GALANT IS LARGER THAN ITS PREDECESSOR AND OFFERS MORE FEATURES SUCH AS DUAL AIRBAGS AND ANTILOCK BRAKES IT WAS RATED THE COUNTRY'S NO 3 FAMILY SEDAN IN CAR AND DRIVER'S JULY ISSUE BEHIND THE CAMRY AND THE DODGE INTREPID BUT AHEAD OF NISSAN MOTOR CORP'S ALTIMA THE TAURUS AND MAZDA MOTOR CORP'S 626 THIS NEW GALANT HAS A KNACK FOR MAKING ITS DRIVER GRIN THE CAR ENTHUSIAST MAGAZINE SAID THE GALANT IS ROUGHLY THE SAME SIZE AS THE ACCORD AND THE CAMRY BUT COSTS LESS THE GALANT ES LOADED WITH AUTOMATIC TRANSMISSION DUAL AIRBAGS AND AIR CONDITIONING COSTS 16700 THAT'S 323 LESS THAN A SIMILARLY EQUIPPED CAMRY DX WHICH HAS ONLY ONE AIRBAG BUT MITSUBISHI ISN'T THE ONLY ONE PUSHING VALUE FOR MONEY THESE DAYS SALES OF THE SLIGHTLY SMALLER NISSAN ALTIMA HAVE BEEN BRISK LARGELY BECAUSE THE CAR'S BASE PRICE IS JUST 12999 ALL AUTO MAKERS ARE BECOMING MORE COMPETITIVE ON PRICE THROUGH DEALER AND CUSTOMER INCENTIVES LEASING OPTIONS AND EQUIPMENT PACKAGES MITSUBISHI EXPECTS TO SELL 60000 GALANTS ANNUALLY BUT ANALYSTS SAY THAT MAY BE DIFFICULT MITSUBISHI IS COMPETING WITH HEAVYWEIGHTS IN A FIERCELY COMPETITIVE SEGMENT THIS FALL HONDA WILL INTRODUCE A REVAMPED ACCORD THAT IS EXPECTED TO BE LARGER MORE POWERFUL AND MORE LUXURIOUS THAN THE CURRENT VERSION CHRYSLER CORP'S NEW TRIO OF MIDSIZE SEDANS THE CHRYSLER CONCORDE EAGLE VISION AND DODGE INTREPID ARE ALSO STRONG COMPETITORS GROWTH IN THE MIDSIZE MARKET ISN'T STRONG ENOUGH TO MEET EVERY AUTO MAKER'S SALES OBJECTIVES SAYS MS JACOBS BUT TO GET THE GALANT OFF TO A STRONG START MITSUBISHI IS SPENDING 30 MILLION ON ADVERTISING ANALYSTS SAY MORE THAN IT HAS EVER SPENT ON A NEW CAR LAUNCH SALESMEN ACROSS THE COUNTRY ARE RECEIVING EXTENSIVE TRAINING ABOUT THE CAR'S FEATURES AND MITSUBISHI IS TESTING THEIR KNOWLEDGE WITH WRITTEN EXAMS WE'VE NEVER HAD A MORE COORDINATED LAUNCH MR RECCHIA SAYS WE DON'T INTEND TO LET THIS CAR BE JUST ANOTHER ENTRY IN THE MIDSIZE SEGMENT 9306230061 930623 CALIFORNIA SENATE CLEARS 52 BILLION BUDGET BILL SACRAMENTO CALIF THE STATE SENATE PASSED A 52 BILLION BUDGET AGREEMENT A SIMILAR BILL WAS PASSED BY THE ASSEMBLY MONDAY THE BUDGET AGREEMENT COVERS THE FISCAL YEAR BEGINNING JULY 1 LAST YEAR STATE LEGISLATORS WRANGLED FOR 64 DAYS BEYOND THEIR DEADLINE BUT BEFORE THE BUDGET ACCORD CAN BE SIGNED BY GOV PETE WILSON LEGISLATORS MUST FIRST PASS 20 SOCALLED TRAILER BILLS WHICH ARE ACTUALLY PIECES OF ENABLING LEGISLATION IMPLEMENTING THE VARIOUS TAX SHIFTS AND EXTENSIONS NECESSARY TO MAKE THE NEW BUDGET WORK LIKE ITS PREDECESSOR THE SENATE BILL SHIFTS 26 BILLION IN PROPERTY TAXES FROM COUNTIES TO KEEP THE STATE'S SCHOOL SYSTEM AFLOAT TO CUSHION THE BLOW TO LOCAL GOVERNMENTS IT EXTENDS FOR SIX MONTHS A 05 SALES TAX AND ALLOWS COUNTIES TO VOTE IN NOVEMBER ON A PLAN TO EXTEND THE SALES TAX FURTHER THE 1994 BUDGET AGREEMENT ALSO CUTS THE BASIC WELFARE GRANTS RAISES HIGHER EDUCATION FEES AND PAYS OFF OVER THE NEXT 18 MONTHS 27 BILLION IN DEBT INCURRED IN THE CURRENT FISCAL YEAR AN OFFICIAL OF THE STATE DEPARTMENT OF FINANCE SAID THE GOVERNOR PLANS TO GO TO THE BOND MARKET TO SECURE SUCH FINANCING 9306230060 930623 WHO'S NEWS VON RIBBENTROP TO QUIT DEUTSCHE BANK TO START PARTICIPATION FUND FRANKFURT BARTHOLD VON RIBBENTROP THE HEAD OF DEUTSCHE BANK'S WORLDWIDE SECURITIES OPERATIONS WILL LEAVE THE BANK JUNE 30 TO START A PARTICIPATION FUND AIMED AT ATTRACTING FOREIGN INVESTMENT IN MIDSIZE GERMAN COMPANIES MR VON RIBBENTROP WHO IS LEAVING AFTER 22 YEARS AT GERMANY'S LARGEST COMMERCIAL AND SECURITIES BANK SAID HE IS TEAMING UP WITH TWO GERMAN PARTNERS TO RAISE ASSETS OF INITIALLY 500 MILLION MARKS 2962 MILLION FOR THE NEW INVESTMENT COMPANY THE PARTNERS ALSO ARE NEGOTIATING WITH A US FINANCE FIRM SPECIALIZING IN BUYOUTS TO BECOME THE FOURTH PARTNER HE SAID THE FUND WOULD BE BASED AT AN OFFSHORE TAX HAVEN AND HOPES TO ATTRACT AS MANY AS 20 INVESTORS ABLE TO PUT UP A MINIMUM INVESTMENT OF 25 MILLION MARKS APIECE MR VON RIBBENTROP 52 YEARS OLD IS THE SON OF JOACHIM VON RIBBENTROP HITLER'S FOREIGN MINISTER HE SPENT THE BULK OF HIS DEUTSCHE BANK CAREER IN THE US INCLUDING A STINT AS CHIEF EXECUTIVE OFFICER OF THE DEUTSCHE BANK CAPITAL CORP INVESTMENT UNIT IN NEW YORK IN JANUARY 1986 HE SHIFTED BACK TO FRANKFURT TO BECOME EXECUTIVE VICE PRESIDENT IN CHARGE OF SECURITIES TRADING AND SALES HIS CURRENT POST HE WILL BE SUCCEEDED BY BERNDALBRECHT VON MALTZAN WHO IS 44 MR VON MALTZAN IS CURRENTLY IN CHARGE OF SECURITIES TRADING AT DEUTSCHE BANK'S BIG MANNHEIM BRANCH ONE OF THE BANK'S LEADING REGIONAL TRADING CENTERS 9306230059 930623 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REP ORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9306230058 930623 BULL'S ZENITH TO BUY 199 OF PACKARD BELL ACCORD BY PC MAKERS SETS JOINT DESIGN AND OUTPUT OF DESKTOP COMPUTERS BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL THE PERSONALCOMPUTER MARKET CONTINUED ITS CONSOLIDATION TREND AS ZENITH DATA SYSTEMS SAID IT WILL ACQUIRE A 199 INTEREST IN PACKARD BELL ELECTRONICS INC TERMS WEREN'T DISCLOSED AS PART OF THE AGREEMENT ZENITH DATA AND PACKARD BELL WILL JOINTLY DESIGN AND MANUFACTURE DESKTOP COMPUTERS AND ZENITH DATA WILL SUPPLY PACKARD BELL WITH PRIVATELABEL VERSIONS OF ITS NOTEBOOK AND SUBNOTEBOOK PERSONAL COMPUTERS THE COMPANIES SAID THEY MAY ANNOUNCE THEIR FIRST PRODUCTS AS SOON AS SEPTEMBER ANALYSTS SAID THE ALLIANCE LOOKED LIKE A GOOD FIT THAT COULD CREATE ANOTHER STRONG COMPETITOR IN THE SHRINKING FIELD ZENITH DATA A UNIT OF FRANCE'S CIE DES MACHINES BULL BASED IN BUFFALO GROVE ILL HAS BEEN A SUCCESSFUL MARKETER TO GOVERNMENT AND BUSINESS ENTITIES BUT HASN'T HAD MUCH OF A PRESENCE IN THE MASS MERCHANDISING MARKET WHERE PRIVATELY HELD PACKARD BELL WAS A PIONEER AS FOR PACKARD BELL IT WILL GET MUCHNEEDED CASH AND NEW PRODUCTS FROM THE ALLIANCE ESPECIALLY IN THE REDHOT MARKET FOR NOTEBOOK AND SUBNOTEBOOK COMPUTERS WHERE IT HAS BEEN NOTABLY WEAK THIS GIVES IT RESOURCES IT DESPERATELY NEEDS TO GROW ITS MARKET SHARE SAID MARKET RESEARCHER DAVID GOLDSTEIN OF CHANNEL MARKETING CORP DALLAS A PROSPECTUS FOR THE COMPANY'S FAILED INITIAL PUBLIC OFFERING LAST YEAR SAID PACKARD BELL HAD A NEGATIVE NET WORTH OF 4 MILLION AND A DEBT LOAD OF 933 MILLION AT THE END OF 1991 BENY ALAGEM PRESIDENT AND CHIEF EXECUTIVE OFFICER WOULDN'T DISCUSS CURRENT FINANCES HE SAID THE ALLIANCE MAY STRENGTHEN PACKARD BELL'S POSITION IF IT TRIES ANOTHER PUBLIC OFFERING BUT WHILE NOT RULING OUT SUCH AN EFFORT HE SAID THAT FOR NOW THE COMPANY WILL CONCENTRATE ON DEVELOPING ITS JOINT VENTURE WITH ZENITH DATA JACQUES NOELS PRESIDENT AND CHIEF EXECUTIVE OF ZENITH DATA SAID THE ALLIANCE GIVES BOTH PARTNERS SIGNIFICANTLY MORE MUSCLE IN AN INCREASINGLY COMPETITIVE AND CONSOLIDATED INDUSTRY HE COMPARED THE ALLIANCE IN SIZE TO COMPAQ COMPUTER CORP BUT THE TWO COMPANIES HAVE A WAY TO GO TO CATCH UP TO COMPAQ THE NATION'S THIRDLARGEST MAKER OF PERSONAL COMPUTERS WITH 1992 SALES OF 41 BILLION BEFORE THE EFFECTS OF THIS ALLIANCE PACKARD BELL EXPECTS 1993 REVENUE TO EXCEED 12 BILLION UP FROM 930 MILLION LAST YEAR ZENITH DATA POSTED SALES OF 900 MILLION LAST YEAR MR NOELS ALSO STRESSED THAT BY SHARING RESEARCH DEVELOPMENT AND PRODUCTION COSTS THE COMPANIES WILL BECOME MORE COSTCOMPETITIVE HE SAID THE ALLIANCE WOULD MEAN LOWER PRICES ON NOTEBOOK AND SUBNOTEBOOK COMPUTERS MR NOELS SAID DESIGN TEAMS AT BOTH COMPANIES WILL BE STRUCTURED INTO A NEW GROUP THAT WILL DESIGN THE CORE PRODUCT LINES FOR BOTH ZENITH DATA AND PACKARD BELL HE SAID DETAILS SUCH AS WHERE THE NEW GROUP WOULD OPERATE OR WHAT FACILITIES WILL BE USED TO MANUFACTURE THE COMPUTERS HAVEN'T BEEN SETTLED NEW DESIGNS WOULD BE MARKETED BY EACH COMPANY UNDER ITS OWN NAME THROUGH ITS OWN DISTRIBUTION CHANNELS HE ADDED THE INCREASINGLY INTENSE PRICE WARS IN THE INDUSTRY HAVE CLAIMED SEVERAL VICTIMS ALREADY EVEREX SYSTEMS INC FILED A BANKRUPTCYCOURT PETITION IN JANUARY AND PRIVATELY HELD COMPUADD COMPUTER CORP ANNOUNCED YESTERDAY THAT IT DID THE SAME MEANWHILE TANDY CORP SOLD THE BULK OF ITS PC OPERATIONS TO AST RESEARCH INC RECENTLY MR NOELS SAID PARISBASED BULL WILL BE REPRESENTED ON PACKARD BELL'S BOARD ALTHOUGH THE SPECIFICS ARE STILL UNDER DISCUSSION THE TRANSACTION IS SUBJECT TO US REGULATORY APPROVAL WHICH THE COMPANIES SAID THEY EXPECT SOON MR NOELS SAID THAT BULL DOESN'T ANTICIPATE INCREASING ITS STAKE IN PACKARD BELL BUT THAT THE AGREEMENT BETWEEN THE COMPANIES DOESN'T BAR SUCH A MOVE 9306230057 930623 QUEBEC HYDROQUEBEC GET S&P DOWNGRADE ON LONGTERM DEBT STANDARD & POOR'S CORP SAID IT LOWERED ITS LONGTERM DEBT RATINGS FOR QUEBEC AND HYDROQUEBEC TO SINGLEAPLUS FROM DOUBLEAMINUS REFLECTING AN INCREASE IN THE PROVINCE'S TAXSUPPORTED DEBT BURDEN AND CONTINUING BUDGET PRESSURES S&P REVISED ITS OUTLOOK FOR THE LONGTERM RATINGS TO STABLE FROM NEGATIVE CITING QUEBEC'S COMMITMENT TO A MEDIUMTERM PLAN OF FISCAL CONSOLIDATION ABOUT 34 BILLION IN DEBT IS AFFECTED BY THE DOWNGRADE GERARD LEVESQUE QUEBEC'S FINANCE MINISTER SAID IN A STATEMENT THAT THE DOWNGRADE WASN'T WARRANTED GIVEN MEASURES TAKEN BY THE PROVINCE TO GENERATE A BUDGET SURPLUS IN FIVE YEARS MOODY'S INVESTORS SERVICE EARLIER THIS MONTH DOWNGRADED ITS LONGTERM DEBT RATINGS FOR QUEBEC AND HYDROQUEBEC TO SINGLEA1 FROM DOUBLEA3 S&P AFFIRMED ITS A1PLUS COMMERCIALPAPER RATING FOR QUEBEC AND HYDROQUEBEC AN ELECTRIC UTILITY OWNED BY THE PROVINCE 9306230056 930623 BUSINESS BRIEF CENTERIOR ENERGY CORP EARLYRETIREMENT PROGRAM ATTRACTS 12 OF 62 EXECUTIVES CENTERIOR ENERGY CORP SAID 12 OF ITS 62 EXECUTIVES INCLUDING TWO OF ITS THREE EXECUTIVE VICE PRESIDENTS HAVE OPTED TO TAKE EARLY RETIREMENT INCENTIVES A MOVE THAT WILL SAVE THE INDEPENDENCE OHIO UTILITY HOLDING COMPANY 17 MILLION IN 1993 THE RETIREMENTS WERE PART OF A CORPORATE RESTRUCTURING ANNOUNCED IN MARCH TO ELIMINATE 14 OF THE WORK FORCE AND SAVE THE COMPANY 64 MILLION AMONG THOSE RETIRING ARE EXECUTIVE VICE PRESIDENTS EDGAR H MAUGANS 58 YEARS OLD AND LYMAN C PHILLIPS 53 IN ADDITION THE COMPANY NAMED ONE NEW VICE PRESIDENT GARY R LEIDICH WHO WILL SERVE AS CHIEF FINANCIAL OFFICER A POST THAT MR MAUGANS HAD HANDLED MR LEIDICH 43 HAD HEADED HUMAN RESOURCES CENTERIOR OWNS CLEVELAND ELECTRIC ILLUMINATING CO AND TOLEDO EDISON CO ITS 1992 EARNINGS DECREASED 105 TO 212 MILLION OR 150 A SHARE FROM 237 MILLION OR 171 A SHARE IN 1991 9306230055 930623 CLINTONS SEEK SUPPORT IN SENATE FOR PLAN ON DEFICIT CUTS PASSED BY FINANCE PANEL BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ON THE EVE OF SENATE DEBATE ON THE PRESIDENT'S ECONOMIC PROGRAM BOTH BILL AND HILLARY CLINTON PITCHED IN TO HELP SENATE LEADERS CEMENT SUPPORT FROM BALKY DEMOCRATS THE CLINTONS SOUGHT TO PERSUADE WAVERING MEMBERS OF THEIR PARTY TO SUPPORT THE VERSION OF THE PRESIDENT'S DEFICITREDUCTION PROGRAM THAT WAS APPROVED BY THE SENATE FINANCE COMMITTEE LAST WEEK THEY DID SO EVEN THOUGH THEY SHARE THE DOUBTERS' CONCERNS ABOUT FINANCE COMMITTEE DECISIONS TO CUT DEEPER INTO PROJECTED MEDICARE SPENDING AND TO SCALE BACK ADMINISTRATIONBACKED TAX BREAKS FOR SMALL BUSINESS THE PRESIDENT IS ANXIOUS TO SEE THE SENATE BILL PASSED SIMPLY TO KEEP HIS PROGRAM MOVING TO THE FINAL STAGE A CONFERENCE COMMITTEE THAT WILL RECONCILE DIFFERENCES BETWEEN THE SENATE AND HOUSE BILLS TO GET 51 VOTES DEMOCRATS CAN'T LOSE MORE THAN A FEW OF THEIR 56 MEMBERS SINCE ALL 44 REPUBLICANS HAVE SAID THEY WILL OPPOSE THE PACKAGE OF TAX INCREASES AND SPENDING CUTS WE'RE GOING TO PASS THIS THING BUT WE'RE GOING TO HAVE SOME TOUGH MOMENTS BEFORE WE GET THERE SAID SEN PAUL SIMON D ILL ONE OF THE LIBERALS WHO HAS PROBLEMS WITH THE PENDING BILL WITH THE SENATE EXPECTED TO VOTE ON THE DEFICITREDUCTION PACKAGE BY THE WEEKEND THE PRESIDENT MET AT THE WHITE HOUSE WITH SEVERAL SENATORS AMONG THEM WAS DEMOCRATIC ARIZONA SEN DENNIS DECONCINI WHO FACES REELECTION NEXT YEAR IN A STATE WITH A LARGE RETIREE POPULATION HE OPPOSES PROVISIONS TO CUT MEDICARE 19 BILLION BEYOND MR CLINTON'S CALL FOR NEARLY 50 BILLION IN REDUCED SPENDING OVER THE NEXT FIVE YEARS AND TO REQUIRE SOME UPPERINCOME SOCIAL SECURITY RECIPIENTS TO PAY MORE TAXES ON THEIR BENEFITS NEW JERSEY SEN FRANK LAUTENBERG WHO ALSO IS UP FOR REELECTION SAID AFTER HIS WHITE HOUSE VISIT THAT HE WANTS TO OFFER AN AMENDMENT THAT WOULD APPLY THE INCREASED SOCIAL SECURITY TAX TO FEWER BENEFICIARIES SOME LIBERALS WHO OPPOSE THE MEDICARE CUTS MET ON CAPITOL HILL WITH MRS CLINTON WHO IS LEADING HER HUSBAND'S EFFORT TO OVERHAUL THE HEALTHCARE SYSTEM THE PRESIDENT AND PARTY LEADERS HAVEN'T PERSUADED SOME DEMOCRATS TO WITHHOLD AMENDMENTS TO THE PACKAGE THE ONE THEY FEAR MOST FROM IOWA SEN TOM HARKIN WOULD CUT 10 BILLION LESS FROM MEDICARE AND MAKE UP THE REVENUES BY RESTORING MR CLINTON'S PROPOSED INCOMETAX INCREASE FOR UPPERINCOME INDIVIDUALS THE FINANCE PANEL HAD CUT BACK THAT INCREASE FOR 1993 PARTY LEADERS FEAR DEMOCRATS WILL PASS THE HARKIN AMENDMENT RATHER THAN BE SEEN AS OPPOSING MEDICARE BUT THAT WOULD TIP THE BILL'S BALANCE OF TAX INCREASES AND SPENDING CUTS IN FAVOR OF TAXES AND COULD COST THE SUPPORT OF CONSERVATIVE DEMOCRATS FOR THE BILL LOUISIANA SEN JOHN BREAUX THE FINANCE COMMITTEE MEMBER WHO REPLACED MR CLINTON'S PROPOSED ENERGY TAX WITH A 43 CENTS A GALLON INCREASE IN FUELS TAXES NOW WANTS AN INCREASE OF 48 CENTS TO FINANCE TWO TAX INCENTIVES FOR SMALL BUSINESSES SEVERAL OTHER SENATORS WANT TO RESTORE MR CLINTON'S PROPOSED CAPITALGAINS TAX BREAK FOR INVESTORS IN SOME SMALL BUSINESSES WHICH THE FINANCE PANEL DROPPED 9306230054 930623 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ACTEL CORP AN INITIAL OFFERING OF 41 MILLION COMMON SHARES VIA GOLDMAN SACHS & CO MONTGOMERY SECURITIES AND NEEDHAM & CO ASSOCIATED MATERIALS INC AN OFFERING OF 75 MILLION OF SENIOR SUBORDINATED NOTES VIA BEAR STEARNS & CO FORTUNE PETROLEUM CORP AN EQUITY OFFERING OF 135 MILLION UNITS VIA HJ MEYERS & CO MERIDIAN DIAGNOSTICS INC AN OFFERING OF ONE MILLION COMMON SHARES BY THE COMPANY AND ONE MILLION SHARES TO BE SOLD BY CERTAIN SHAREHOLDERS VIA PRUDENTIAL SECURITIES AND OHIO CO PHOENIX RE CORP AN OFFERING OF 75 MILLION OF SENIOR NOTES DUE 2003 VIA DILLON READ & CO AND ALEX BROWN & SONS INC ROCKWELL INTERNATIONAL CORP A SHELF OFFERING FOR UP TO 300 MILLION AGGREGATE PRINCIPAL AMOUNT OF DEBT SECURITIES WHICH MAY BE OFFERED IN ONE OR MORE SERIES ON TERMS TO BE DETERMINED AT THE TIME OF SALE ZENECA WILMINGTON INC A UNIT OF ZENECA GROUP PLC AN OFFERING OF 300 MILLION OF GUARANTEED NOTES VIA GOLDMAN SACHS & CO MERRILL LYNCH & CO JP MORGAN SECURITIES INC AND MORGAN STANLEY & CO 9306230053 930623 LAW PHILIP MORRIS WINS SMALLCLAIMS SUIT BY FORMER SMOKER JUDGE RULES EXMARLBORO FAN WAS TOO LATE IN SEEKING REIMBURSEMENT OF 1153 BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL A FORMER SMOKER WHO SUED PHILIP MORRIS COS IN SMALLCLAIMS COURT FAILED IN HIS BID TO BECOME THE FIRST PERSON TO COLLECT MONEY FROM A TOBACCO COMPANY FOR SMOKINGRELATED DAMAGES THE CASE HAD BEEN HERALDED BY ANTISMOKING ACTIVISTS AS A HARBINGER OF FUTURE LAWSUITS IN WHICH SMOKERS WOULD USE SMALLCLAIMS COURTS WHERE IN SOME STATES LAWYERS AREN'T WELCOME TO WIN DAMAGES THEY'VE BEEN UNABLE TO SECURE IN BIGGER CASES BUT JUDGE LINDA K JACKE IN MERCER ISLAND WASH SAID PLAINTIFF ALFRED J DESKIEWICZ JR'S SUIT WAS BARRED BY THE STATE'S THREEYEAR STATUTE OF LIMITATIONS FOR SMALLCLAIMS CASES BECAUSE THE PLAINTIFF HAD KNOWN AS EARLY AS THE 1970S THAT HE HAD A POTENTIAL CLAIM AGAINST PHILIP MORRIS THAT WAS WHEN HE TRIED TWICE UNSUCCESSFULLY TO STOP SMOKING THE JUDGE DIDN'T RULE ON THE MERITS OF MR DESKIEWICZ'S CLAIM MR DESKIEWICZ A 51YEAROLD DESIGN ENGINEER HAD SOUGHT 1153 AS REIMBURSEMENT FOR DOCTOR'S VISITS NICOTINE PATCHES AND MEMBERSHIP IN A HEALTH CLUB THAT HE JOINED TO LOSE THE WEIGHT HE GAINED WHEN HE QUIT SMOKING MARLBOROS AFTER 34 YEARS HE SAID HE FIRST RECOGNIZED IN 1989 THAT HE WAS ADDICTED TO SMOKING JUDGE JACKE HOWEVER SAID THE WORD ADDICTION HAS NO CLEAR LEGAL MEANING IN ADDITION TO THE STATUTE OF LIMITATIONS PROBLEM SHE DISMISSED THE CASE BECAUSE MR DESKIEWICZ FAILED TO PRESENT EVIDENCE THAT HE COULDN'T QUIT SMOKING ON HIS OWN MR DESKIEWICZ OF KIRKLAND WASH SAID HE DIDN'T KNOW WHETHER HE WOULD APPEAL MY BASIC REACTION AND THE WORD FOR THE DAY IS STUNNED' HE SAID PHILIP MORRIS ATTORNEY CHARLES WALL SAID THE COMPANY WAS PLEASED WITH THE RULING THE CASE ATTRACTED WIDESPREAD ATTENTION BECAUSE IN WASHINGTON STATE AND 10 OTHER STATES ATTORNEYS AREN'T ALLOWED IN SMALLCLAIMS COURT THAT MEANS PLAINTIFFS CAN MAKE ARGUMENTS WITHOUT FACING THE USUAL PHALANX OF TOBACCOCOMPANY LAWYERS IN MR DESKIEWICZ'S CASE FOR INSTANCE PHILIP MORRIS WAS REPRESENTED BY A SALES DIRECTOR ANTITOBACCO ACTIVISTS DELIGHTED AT THE IDEA OF A GUERILLA WAR OF SMALLCLAIMS SUITS ACROSS THE COUNTRY RICHARD DAYNARD A LAW PROFESSOR WHO RUNS AN ANTITOBACCO GROUP AT BOSTON'S NORTHEASTERN UNIVERSITY CALLED THE DECISION TECHNICALLY WRONG AND SAID IT WON'T AFFECT HIS GROUP'S PLAN TO PUBLISH A MANUAL SHOWING SMOKERS HOW TO FILE SIMILAR SMALLCLAIMS SUITS A DECISION BY A SMALLCLAIMS JUDGE HAS NO VALUE AS PRECEDENT INSIDE OR OUTSIDE THE STATE OF WASHINGTON PROFESSOR DAYNARD SAID MR DESKIEWICZ DIDN'T INCUR ECONOMIC DAMAGE FOR THE SMOKINGCESSATION TREATMENTS UNTIL 1989 AND THAT WAS WHEN THE STATUTE OF LIMITATIONS SHOULD HAVE STARTED RUNNING BUT IN ANY CASE HE ADDED THE FACT THAT ONE JUDGE IN MERCER ISLAND THINKS THE STATUTE OF LIMITATIONS RAN DOES NOT MEAN THIS IS NOT STILL A VERY GOOD STRATEGY 9306230052 930623 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COURT OF JUSTICE RULED THAT BRITAIN DIDN'T BREACH EUROPEAN COMMUNITY LAW BY REQUIRING LARGER HEALTH WARNINGS ON UKPRODUCED CIGARETTE PACKS THAN CALLED FOR BY EC LAW BUT IN A SEPARATE CASE ALSO BROUGHT BY THE TOBACCO INDUSTRY THE LUXEMBOURG COURT DECIDED AGAINST ITALIAN LEGISLATION REQUIRING TWO HEALTH WARNINGS ON EACH CIGARETTE PACKAGE THE BRITISH CASE WAS A SETBACK FOR TOBACCO COMPANIES WHICH CHALLENGED THE GOVERNMENT'S RULE THAT WARNINGS AND TAR AND NICOTINE INFORMATION TAKE UP 6 OF THE SURFACE THEY ARE PRINTED ON EC RULES SPECIFY AT LEAST 4 WHICH THE COURT DEEMED A MINIMUM UNLESS IT BLOCKS TRADE BETWEEN EC COUNTRIES ON A FRENCH CONSORTIUM'S COMPLAINT THE COURT RULED DENMARK BROKE EC LAWS ON PUBLIC CONTRACTS BY REQUESTING USE OF DANISH MATERIALS AND WORKERS IN A BRIDGE JOB THE RULING MAY BE USED TO SEEK COMPENSATION FROM DENMARK JAPAN WILL TRY TO FIND WAYS TO OVERHAUL COPYRIGHT LAWS TO SLASH PERSONAL AND CORPORATE COPYING OF COMPUTER SOFTWARE LAWS FORBID THE SALE OR USE OF COPIED SOFTWARE BY CORPORATIONS THOUGH IT IS COMMONPLACE INDIVIDUALS ARE FREE TO COPY THE BUSINESS SOFTWARE ALLIANCE A US TRADE GROUP COMPLAINED THIS MONTH THAT AMONG ADVANCED NATIONS JAPAN HAS THE HIGHEST RATE OF SOFTWARE COPYRIGHT INFRINGEMENTS A SURVEY BY THE GROUP FOUND THAT 92 OF NONENTERTAINMENT PROGRAMS FOR PERSONAL COMPUTERS IN JAPAN LAST YEAR WERE COPIED WITHOUT AUTHORIZATION REPRESENTING A 3 BILLION LOSS TO THE INDUSTRY THE PHILIPPINE SUPREME COURT DISQUALIFIED THE HEAD OF THE AGENCY OVERSEEING CONVERSION OF A FORMER US NAVAL BASE INTO A COMMERCIAL PORT LABOR LEADERS HAD CHALLENGED THE APRIL 1992 APPOINTMENT OF RICHARD GORDON MAYOR OF OLONGAPO CITY ADJACENT TO THE BASE AS CHIEF OF THE SUBIC BAY METROPOLITAN AUTHORITY THE COURT RULED THIS VIOLATED A CONSTITUTIONAL BAN ON NAMING AN ELECTED OFFICIAL TO ANOTHER GOVERNMENT POST THE DECISION COULD SLOW EFFORTS TO WOO FOREIGN INVESTORS TO THE SUBIC AREA AND FORCE RENEGOTIATION OF SOME AGREEMENTS TO LOCATE THERE IRAN'S PARLIAMENT PASSED A BILL ALLOWING DIRECT FOREIGN INVESTMENT IN THREE PLANNED FREETRADE ZONES TO BE PROMOTED AS PERSIAN GULF GATEWAYS IRAN PLANS TO BUILD INFRASTRUCTURE TO SUPPORT MANUFACTURERS WHICH MAY LEASE LAND ON THE GULF ISLANDS OF QESHM AND KISH AND ON CHABAHAR IN THE SEA OF OMAN FOREIGN FIRMS WILL GET A 15YEAR EXEMPTION FROM CORPORATE AND INDIVIDUAL TAXES OTHER INCENTIVES MAY INCLUDE IMPORTEXPORT DUTY EXEMPTIONS UNRESTRICTED MOVEMENT OF CAPITAL AND INSURANCE AGAINST CONFISCATION OF INVESTMENTS SPAIN'S METAL WORKERS UNION AGREED ON A 4 SALARY INCREASE FOR THIS YEAR IN EXCHANGE FOR AN EXPANDED ROLE IN MANAGEMENT DECISIONS AT THE GOVERNMENT'S INDUSTRIAL HOLDING COMPANY THE THREEYEAR PACT COVERS 70000 WORKERS IN 47 STATE COMPANIES IN THE STEEL ALUMINUM DEFENSE AND SHIPBUILDING SECTORS WAGE INCREASES IN 1994 AND 1995 WILL MATCH INFLATIONLAST MONTH IT STOOD AT 46 WITH EXTRA RAISES LINKED TO HIGHER PRODUCTIVITY AND LOWER PRODUCTION COSTS SPANISH PAY RAISES THIS YEAR AVERAGE 32 IN THE PUBLIC SECTOR AND 53 IN THE PRIVATE SECTOR BUSINESSES IN HONG KONG REMAIN HOPEFUL ABOUT INVESTMENT IN THE BRITISH COLONY AND CHINA IN THE NEXT FIVE YEARS IN AN ANNUAL SURVEY BY THE AMERICAN CHAMBER OF COMMERCE IN HONG KONG A FAVORABLE SCENARIO FOR THE TERRITORY WAS SEEN BY 90 OF RESPONDENTS LITTLE CHANGED FROM 89 IN THE PREVIOUS POLL THOSE EXTREMELY POSITIVE ABOUT CHINA CLIMBED TO 48 FROM 30 WHILE THOSE WITH A SIMPLY FAVORABLE OUTLOOK DROPPED TO 50 FROM 63 BUT OPTIMISM FLAGGED ABOUT THE OUTLOOK AFTER 1997 WHEN HONG KONG WILL BE RULED BY CHINA RESPONDENTS CONFIDENT ABOUT THOSE CONDITIONS SANK TO 24 FROM 48 AND THOSE LESS CONFIDENT ROSE TO 20 FROM 8 SOUTH KOREA UNVEILED A MARKETOPENING PROGRAM THAT WILL ALLOW FOREIGN INVESTMENT IN 176 INDUSTRIAL SECTORS THE FIVEYEAR PROGRAM TO ATTRACT MORE FOREIGN FUNDS AND ENCOURAGE TECHNOLOGY TRANSFERS TO KOREAN INDUSTRIES WILL BEGIN LATER THIS YEAR THE COUNTRY'S INDUSTRIES OPEN TO FOREIGN PARTICIPATION WOULD INCREASE TO 94 BY 1998 FROM 83 NOW SECTORS TO BE OPENED INCLUDE OUTDOOR ADVERTISING MINING HOSPITALS TELECOMMUNICATIONS FILM DISTRIBUTION CREDITCARD SERVICE GENERAL TRADING AND ELECTRICITY GENERATION AMONG 98 AREAS TO REMAIN LIMITED OR CLOSED TO FOREIGN INVESTORS INCLUDE RICE AND BARLEY FARMING SOME FISHING GASOLINE STATIONS TRANSPORTATION TELEVISION AND RADIO BROADCASTING BANKING REAL ESTATE AND LIFE INSURANCE MEANWHILE TO HELP BALANCE ECONOMIC DEVELOPMENT SOUTH KOREA'S 40 DISCOUNT ON TARIFFS FOR DEFENSE AND TECHNOLOGICALLY SOPHISTICATED INDUSTRIES WILL BE HALVED GRADUALLY OVER THREE YEARS THROUGH 1996 AND POSSIBLY ELIMINATED A YEAR LATER SEAMEN IN GREECE DEMANDING BETTER PENSIONS AND HEALTH CARE BEGAN A TWODAY STRIKE CANCELING FERRY SAILINGS TO ISLANDS AND STRANDING HUNDREDS OF TRAVELERS A SWARM OF LOCUSTS APPEARED IN HUNGARY FOR THE FIRST TIME IN 60 YEARS DESTROYING THOUSANDS OF ACRES OF VEGETATION 9306230051 930623 DANGER AHEAD GM DRIVE TO STEP UP EFFICIENCY IS COLLIDING WITH UAW JOB FEARS CONTRACT TALKS BEGIN TODAY WITH BOTH SIDES WARY OF COSTS OF DOWNSIZING FEWER PARTS FEWER WORKERS BY NEAL TEMPLIN AND JOSEPH B WHITE STAFF REPORTERS OF THE WALL STREET JOURNAL SAGINAW MICH GENERAL MOTORS CORP'S STRUGGLE TO LAUNCH A LEANMANUFACTURING REVOLUTION AND THE UNITED AUTO WORKERS' STRUGGLE TO SAVE JOBS ARE ABOUT TO HIT HEADON AS GM AND UNION BARGAINERS PREPARE TO CLASP HANDS TODAY IN THE RITUAL START OF NEGOTIATIONS TOWARD A NEW BIG THREEUAW NATIONAL CONTRACT NO ISSUE LOOMS BIGGER THAN GM'S ATTEMPT TO CLOSE THE HUGE PRODUCTIVITY GAP IN ITS UNPROFITABLE DOMESTIC VEHICLE OPERATIONS CALL IT LEAN PRODUCTION OR SYNCHRONOUS PRODUCTION OR REENGINEERING GM PRESIDENT JOHN F SMITH JR'S STRATEGY FOR MAKING DOMESTIC OPERATIONS PROFITABLE COULD ELIMINATE AS MANY AS 70000 TO 90000 MORE BLUECOLLAR JOBS BY THE LATE 1990S THAT WOULD TAKE IT FAR BEYOND THE 22000 JOBS STILL TO BE CUT UNDER A PREVIOUSLY ANNOUNCED 54000JOB DOWNSIZING IN ADVANCE OF THE LABOR TALKS MR SMITH IS TRYING TO CUSHION THE BLOW ON MONDAY HE SAID GM WILL SHIFT SOME SMALLCAR PRODUCTION OUT OF MEXICO TO REEMPLOY SOME 1000 IDLED UAW MEMBERS AT GM'S LANSING MICH PLANT BUT LONG TERM GM'S PUSH TO BECOME COMPETITIVE COMES DOWN TO A TOUGH EQUATION SIMPLER PRODUCTS AND JAPANESESTYLE MANUFACTURING EQUALS FEWER WORKERS MANY US COMPANIES ARE TRYING TO MASTER THAT EQUATION BUT FEW WITH MORE URGENCY OR FURTHER TO GO THAN GM CONSEQUENTLY THE AUTO TALKS WILL BE WATCHED CLOSELY FROM WALL STREET TO WASHINGTON TO SHOP FLOORS ALL OVER INDUSTRIAL AMERICA AND ESPECIALLY IN DOZENS OF GM FACTORIES SUCH AS THE SAGINAW DIVISION PLANT SIX HERE JUST OFF INTERSTATE 75 MIKE HUSAR THE PLANT MANAGER AND 1900 GM WORKERS ARE BETTING THEIR FUTURES ON LEANMANUFACTURING METHODS SUCH AS THOSE INSTITUTED LAST APRIL IN DEPARTMENT 76 IN THAT DEPARTMENT OF THE SPRAWLING PLANT ASSEMBLY OF STEERING COLUMNS FOR GM'S PONTIAC GRAND AM AND ITS SISTER CARS BEGAN ON A NEW PRODUCTION LINE THAT WAS DESIGNED WITH THE HELP OF UAW PRODUCTION EMPLOYEES THE LINE MAKES IT EASIER FOR THEM TO INSTALL PARTS THE GRAND AM'S NEW STEERING COLUMN ALSO HAS A SIMPLER DESIGN WITH ABOUT 30 FEWER PARTS THAN ITS PREDECESSOR HAD THE RESULT 14 WORKERS CAN ASSEMBLE 1000 STEERING COLUMNS A DAY ABOUT 71 COLUMNS PER WORKER THAT IS MORE THAN THREE TIMES THE PRODUCTIVITY OF AN OLDER MASSPRODUCTION LINE 50 FEET AWAY AND EVEN THOUGH THE NEW LINE'S MACHINERY COST 30 TO 40 LESS THAN THAT ON THE OLD LINE THE QUALITY OF THE COLUMNS IT PRODUCES IS ROUGHLY SEVEN TIMES HIGHER BECAUSE OF THE IMPROVED DESIGN AND ERRORPROOFING IDEAS MODELED ON TECHNIQUES PIONEERED BY TOYOTA MOTOR CORP THIS IS THE WAY WE HAVE TO START DOING PRODUCTION SAYS RANDY DUBOIS A 20YEAR VETERAN AT THE PLANT WE COULDN'T LAST DOING IT THE WAY WE WERE DOING IT THE UAW AND THE BIG THREE FACE TOUGH ISSUES THIS SUMMERSOARING HEALTHINSURANCE COSTS COMPANY DEMANDS FOR LOWER WAGES IN PARTS OPERATIONS JOBSHIFTING TO MEXICO AND PENSIONS TO NAME A FEW BUT NOTHING PACKS THE EXPLOSIVE PUNCH OF GM'S DETERMINATION TO ADOPT A PRODUCTDESIGN AND MANUFACTURING SYSTEM THAT COULD ENABLE IT TO SHED MORE WORKERS BY THE END OF THE DECADE THAN CHRYSLER CORP EMPLOYS TODAY AND THAT IS ON TOP OF 250000 JOBS GM HAS ALREADY ELIMINATED SINCE 1978 BECAUSE NEARLY A THIRD OF THE UAW'S 860000 MEMBERS WORK AT GM SHRINKAGE IN THE UNION'S GM RANKS STRIKES AT THE UNION'S HEART THROUGH LOST DUES AND LOST POLITICAL CLOUT THAT IS WHY GM EXECUTIVES SHY AWAY FROM PUBLICLY DISCUSSING LEAN MANUFACTURING'S POTENTIAL IMPACT ON EMPLOYMENT THE ISSUE IS PRODUCTIVITY MR SMITH INSISTED MONDAY WHEN WE GET PRODUCTIVE WE HAVE A BETTER SHOT OF BEING MORE COMPETITIVE IN THE MARKETPLACE HOPEFULLY WE'RE GOING TO SELL MORE VEHICLES WHICH WILL REQUIRE MORE PEOPLE TO BUILD THOSE VEHICLES BUT PRIVATELY MR SMITH AND HIS DEPUTIES ARE ORDERING GM PLANTS TO MATCH FORD MOTOR CO'S PRODUCTIVITY A DIRECTIVE THAT MEANS SHRINKING THE HOURLY WORK FORCE OF 272000 PEOPLE BY ABOUT A THIRD CLEARLY MR SMITH IS WALKING A TIGHTROPE HE MUST PROVE TO SKEPTICAL INVESTORS THAT GM WON'T DRAG ITS FEET ON COSTCUTTING FOR FEAR OF THE UAW BUT AS GM BEGINS TO CLOSE MORE OF THE 23 FACTORIES TARGETED FOR EXTINCTION SINCE LAST DECEMBER HE ALSO MUST AVOID CRUSHING THE ENTHUSIASM AND TRUST UNDERLYING THE NASCENT LEAN PRODUCTION IN PLACES SUCH AS SAGINAW PLANT SIX MR SMITH IS TRYING TO ACCOMPLISH BOTH GOALS BY THAWING THE COLD WAR THAT LED TO A SERIES OF CRIPPLING LOCAL STRIKES LAST SUMMER IN SOME RECENT MOVES HE HAS AGREED TO SAVE UAW JOBS IN RETURN FOR PLEDGES BY LOCAL UNIONS TO MEET SPECIFIC PRODUCTIVITY TARGETS LAST MONTH FOR EXAMPLE GM SAID IT WOULD DELAY JETTISONING 800 OF 1550 JOBS AT A LIVONIA MICH FACTORY DUE TO CLOSE THIS YEAR THE FACTORY WHICH MAKES SUSPENSION PARTS GOT A THREEYEAR REPRIEVE AFTER WORKERS AGREED TO CUT COSTS TO MATCH THOSE OF OUTSIDE RIVALS SO FAR MR SMITH'S EFFORT TO MEET THE UNION HALFWAY HAS WON PRAISE FROM THE UAW'S TOP BARGAINER AT GM STEPHEN P YOKICH WHO A YEAR AGO WAS BASHING GM'S FORMER MANAGEMENT WE DO HAVE TRUST MR YOKICH SAID EARLIER THIS WEEK HE'S THE FIRST CEO EVER TO WALK OUT AND SAY THAT'S MY EMPLOYEES' UNION' IT MAKES IT A HELL OF A LOT BETTER COMPANY TO WORK FOR FINDING A SOLUTION TO GM'S PROBLEMS THAT BOTH THE COMPANY AND THE UNION CAN ACCEPT WON'T BE EASY THE CHALLENGE OF DOWNSIZING DEFEATED MR SMITH'S PREDECESSOR ROBERT C STEMPEL WHO IN 1990 NEGOTIATED A LABOR PACT DESIGNED TO LET GM SHRINK ITS WORK FORCE IN AN ORDERLY WAY AS IT INSTALLED MORE EFFICIENT METHODS INSTEAD GM RAN INTO RESISTANCE IN MANY PLANTS CAPPED BY TWO STRIKES LAST SUMMER BY THE END OF THE CURRENT CONTRACT THIS SEPTEMBER GM WILL HAVE PAID OUT ABOUT 335 BILLION IN WAGES TO IDLED WORKERS GM'S BOARD CLEARLY BELIEVES THAT THE COMPANY CAN'T AFFORD ANOTHER SUCH FIASCO LAST FALL IT FORCED OUT MR STEMPEL AND HIS TEAM AND INSTALLED MR SMITH WITH A MANDATE TO GET THE BLOATED NORTH AMERICAN OPERATIONS TO BREAK EVEN THIS YEAR AFTER LOSING MORE THAN 11 BILLION IN 1991 AND 1992 NOW MR SMITH IS PUSHING TWIN CAMPAIGNS TO MAKE GM'S PRODUCTS SIMPLER AND TO REDESIGN THE FACTORIES THAT BUILD THEM TO RUN WITH FEWER PEOPLE THE EFFORTS WON'T FULLY PAY OFF FOR THREE TO FIVE YEARS BUT HE IS MAKING PROGRESS LAST YEAR HIS NORTH AMERICAN STRATEGY BOARD IDENTIFIED 30 COMPONENTS THAT COULD BE SIMPLIFIED FOR 1994 MODELS CURRENTLY GM HAS 64 DIFFERENT VERSIONS OF THE CRUISE CONTROL/TURN SIGNAL MECHANISM IT PLANS TO PARE THAT TO 24 VERSIONS NEXT YEAR AND THE FOLLOWING YEAR TO JUST EIGHT THE TOOLING FOR EACH ONE COSTS GM'S AC ROCHESTER DIVISION ABOUT 250000 WE'VE BEEN TALKING ABOUT TOO MANY PARTS DOING THE SAME JOB FOR 25 YEARS BUT WE WEREN'T FOCUSED ON IT MR SMITH SAID AT A QUALITY SEMINAR HELD JOINTLY WITH MR YOKICH EARLIER THIS YEAR WE HAD SEPARATE OPERATIONS DOING WHAT WAS BEST FOR THEIR OPERATIONS NOW WE NEED TO TAKE A MUCH BROADER LOOK AT WHAT WE'RE DOING MR SMITH ESTABLISHED A VEHICLE LAUNCH CENTER TO PLAY COP IN THE FIGHT AGAINST REDUNDANT PARTS AND WASTEFUL DESIGNS THE CENTER WILL GOVERN WHICH PARTS WILL BE USED IN GM'S FORTHCOMING VEHICLES AND HOW THEY WILL BE PUT TOGETHER DESIGN TEAMS WILL PICK COMPONENTS OFF AN AUTOMOTIVE VERSION OF A CHINESE MENU ONE BRAKE SYSTEM FROM THE THREE IN COLUMN A ONE ELECTRICAL WIRING SYSTEM FROM COLUMN B ONE SEAT FROM COLUMN C THIS APPROACH IS CRITICAL TO GM'S DRIVE TO CLOSE ITS NEARLY 800PERVEHICLE LABORCOST DISADVANTAGE AGAINST FORD MUCH OF THAT DISADVANTAGE HAS ITS ROOTS NOT ON THE FACTORY FLOOR BUT IN GM'S DESIGN STUDIOS AND ENGINEERING CENTERS SINCE 1986 GM'S OKLAHOMA CITY ASSEMBLY PLANT WHICH BUILDS THE BUICK CENTURY AND OLDSMOBILE CUTLASS CIERA HAS ELIMINATED 2100 WORKERS THROUGH PRODUCTIVITY IMPROVEMENTS AND A REDUCTION IN LINE SPEED NEVERTHELESS THE PLANT WITH 4300 WORKERS LAGS BEHIND FORD'S ATLANTA PLANT WHICH BUILDS TAURUS AND SABLE MODELS WITH JUST 2450 HOURLY WORKERS THE GM PLANT'S PRODUCTIVITY ALSO TRAILS CHRYSLER'S BRAMALEA ONTARIO FACTORY WHICH BUILDS THE NEW LH MIDSIZE CARS WITH JUST 2700 WORKERS WHY FOR ONE THING THE 12YEAROLD MODELS OKLAHOMA CITY BUILDS ARE DESIGNED LIKE JIGSAW PUZZLES SAYS PLANT MANAGER BARRY HERR THERE ARE THINGS IN THAT INSTRUMENT PANEL THAT SUPERMAN COULDN'T PUT TOGETHER GM'S PROLIFERATION OF PARTS IS MINDBOGGLING GM MAKES OR BUYS 139 DIFFERENT HOOD HINGES COMPARED WITH ONE FOR FORD JAMES HARBOUR A PRODUCTIVITY CONSULTANT RECENTLY TOLD A GROUP OF GM ENGINEERS DON'T HOLD ME TO 139 THEY COULD HAVE RELEASED FIVE MORE YESTERDAY HE ADDED GM DECLINES TO DISCUSS THE NUMBERS SAGINAW'S PLANT SIX JUGGLES PARTS FOR 167 DIFFERENT STEERING COLUMNS DOWN FROM 250 LAST YEAR BUT STILL FAR FROM THE GOAL OF FEWER THAN 40 BY DECADE'S END ANY DESIGN ENGINEER WHO WANTED ANY KIND OF FEATURE COULD HAVE IT SAYS MR HUSAR THE PLANT MANAGER THIS ATTITUDE INCREASED GM'S COSTS EXPONENTIALLY NOT ONLY DOES THE COMPANY PAY FAR MORE ENGINEERS THAN COMPETITORS DO TO DESIGN STEERING COLUMNS BUT IT NEEDS EXTRA TOOLS AND EXTRA PEOPLE TO MOVE PARTS AROUND AND IT HAS SUFFERED FROM QUALITY GLITCHES WHEN WORKERS CONFUSED ONE STEERING COLUMN WITH ANOTHER EXECUTIVES RUNNING NORTH AMERICAN CAR AND TRUCK OPERATIONS SAY THEY HAVE ORDERS TO STOP THIS TO DEPROLIFERATE IN GM JARGON WE'VE CREATED THIS MONSTER SAYS CLIFFORD J VAUGHN GROUP VICE PRESIDENT FOR TRUCK OPERATIONS NOW WE'VE GOT TO WHITTLE IT DOWN TO SIZE THE WHITTLING WON'T STOP WITH HINGES AND STEERING COLUMNS IN THE 1980S GM SPAWNED DIVERSE WAYS OF WELDING AND ASSEMBLING VEHICLES NOW TWO MIDSIZE CAR PLANTS ARE RUNNING AT HALF SPEED BECAUSE THE TOOLS USED IN FAIRFAX KAN TO BUILD PONTIAC GRAND PRIX MODELS CAN'T BE USED FOR BUICK REGALS EVEN THOUGH THE TWO CARS ARE BUILT ON THE SAME CHASSIS MR SMITH PREACHES TIRELESSLY ABOUT THE NEED FOR COMMON PROCESSES AND COMMON TOOLS TO MAKE IT EASIER TO BUILD SEVERAL DIFFERENT MODELS IN ONE PLANT ONCE AGAIN HOWEVER THE IMPLICATIONS FOR LABOR ARE CLEAR MORE FLEXIBLE FACTORIES MEAN FEWER FACTORIES OVERALL BUT WHILE MANY GM WORKERS AND MANAGERS FEAR THE CONSEQUENCES OF LEAN PRODUCTION THEY FEAR THE CONSEQUENCES OF FAILING TO CHANGE EVEN MORE WITH THEM SHUTTING DOWN PLANTS EVERYBODY'S AWARE WE'VE GOT TO GET BETTER OR WE'LL LOSE OUR JOBS SAYS DAN NICOL PART OF A TEAM IN PLANT SIX THAT MAKES STEERINGCOLUMN PARTS FOR SATURNS HIS TEAM HAS REDESIGNED ITS WORK AREA ALONG LEANPRODUCTION LINES DOUBLING PRODUCTIVITY WHILE ELIMINATING ONE OF FIVE JOBS SUCH EFFORTS ARE POPPING UP ALL OVER GM AS PLANT MANAGERS AND LOCAL UAW LEADERS WORK TO SAVE THEIR PLANTS THE MESSAGE IS THE TIME FOR TALK IS OVER SAYS MR HUSAR WHO SPENT TWO YEARS LEARNING LEAN PRODUCTION FROM TOYOTA AT NEW UNITED MOTOR MANUFACTURING INC THE GMTOYOTA PLANT IN FREMONT CALIF AT GM'S LORDSTOWN OHIO PLANT FAMOUS AS THE CAULDRON OF BLUECOLLAR BLUES IN THE 1970S PLANT MANAGER MICHAEL J CUBBIN IS CLEARING OUT 225000 SQUARE FEET OF SPACE BY USING LEANPRODUCTION METHODS TO CUT INVENTORY AND COMPRESS ASSEMBLY LINES LORDSTOWN CANCELED A MULTIMILLIONDOLLAR BUILDING ADDITION AND IS PUTTING PRODUCTION EQUIPMENT FOR A NEW COMPACT CAR IN THE NEWLY AVAILABLE AREAS AT ORION TOWNSHIP MICH GM IS GEARING UP TO BUILD THE OLDSMOBILE AURORA THE NEW LUXURY CAR'S FRONT BUMPER HAS 30 PARTS AND TAKES 85 MINUTES TO ASSEMBLE THAT COMPARES WITH 87 PARTS AND 18 MINUTES FOR THE FRONT BUMPER OF THE CADILLAC DEVILLE WHICH ORION STOPS BUILDING NEXT MONTH BECAUSE THE AURORA WAS DESIGNED TO BE EASIER TO BUILD GM CAN ASSEMBLE IT AND FUTURE SISTER CARS ON A MORE EFFICIENT ASSEMBLY LINE THAT HAS FEWER WORKERS ALREADY GM HAS CUT ORION'S WORK FORCE BY 1000 PEOPLE TO 4500 BY THE MID1990S ORION'S WORK FORCE COULD TOTAL ABOUT 3800 ERNIE EMERY PRESIDENT OF ORION'S UAW LOCAL DISAGREES THAT WE CAN DO QUALITY WORK WITH THE NUMBERS THEY'RE TELLING US BUT PLANT MANAGER TIM SPRECHER IS ADAMANT WE'VE BECOME COMPETITIVE IN THE QUALITY ARENA NOW WE'VE GOT TO BECOME COMPETITIVE IN THE COST ARENA MR SMITH IS LAYING MORE AGGRESSIVE PLANS THAN HIS PREDECESSOR TO CAPITALIZE ON ONE THING GM HAS GOING FOR IT GM'S WORKERS ARE GETTING OLDER WHEN GM REPLACES THE CURRENT MODEL THE CHEVROLET CAVALIER AT LORDSTOWN IT PLANS TO CUT ASSEMBLY LABOR FROM ROUGHLY 30 HOURS PER CAR TO ABOUT 20 HOURS THAT REDUCTION IMPLIES A WORK FORCE OF ABOUT 4000 DOWN FROM THE 6000 AT THE PLANT TODAY ASKED HOW HE WILL HIT THAT TARGET MR CUBBIN THE PLANT MANAGER NOTES THAT IN THREE YEARS 2500 LORDSTOWN WORKERS WILL REACH 30 YEARS OF SERVICE AND CAN RETIRE 9306230050 930623 TECHNOLOGY & HEALTH AUDIT QUESTIONS SUPERCOLLIDER COSTS AS PROJECT FACES CRUCIAL HOUSE VOTE BY CHRIS FRAMPTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPERCONDUCTING SUPERCOLLIDER IS IN TROUBLE AGAIN A DRAFT OF AN AUDIT CONDUCTED BY THE INSPECTOR GENERAL OF THE ENERGY DEPARTMENT QUESTIONS AS MUCH AS 40 OF THE FUNDS PAID TO SUBCONTRACTORS ON THE SCIENCE PROJECT THE REPORT'S MAJOR CRITICISMS INVOLVE ALLEGED COST OVERRUNS AND EXPENSES FOR SUCH THINGS AS POTTED TROPICAL PLANTS AND LIQUOR THE REPORT ALSO SUGGESTS THAT SUPERCOLLIDER OFFICIALS DIDN'T COOPERATE WITH THE AUDIT THE NEWS COMES AT A BAD TIME FOR THE SUPERCOLLIDER WHICH IS UP FOR A VOTE IN THE HOUSE TOMORROW THE HOUSE ACTUALLY VOTED TO KILL THE PROJECT LAST YEAR BUT THE PROJECT SURVIVED WHEN THE SENATE BACKED IT BY A 6232 VOTE THE AUDIT TENTATIVELY CONCLUDED THAT ABOUT 216 MILLION OF THE 508 MILLION IN REIMBURSEMENTS EXAMINED BY THE INSPECTOR GENERAL WERE EXCESSIVE OR UNNECESSARY OR REPRESENTED UNCONTROLLED COST GROWTH THE DRAFT REPORT WAS RELEASED BY THE PROJECT ON GOVERNMENT OVERSIGHT A POLITICAL WATCHDOG GROUP SUPERCOLLIDER OFFICIALS DISPUTED THE REPORT'S FINDINGS WE ARE IN COMPLETE CONTROL OF COSTS SAID ED SISKENS GENERAL MANAGER OF THE SSC LABORATORY WHICH RUNS THE SUPERCOLLIDER PROJECT HE SAID THE ALLEGED COST OVERRUNS WERE THE RESULT OF A DISAGREEMENT BETWEEN THE INSPECTOR GENERAL'S OFFICE AND THE SUPERCOLLIDER OFFICE CONCERNING THE NATURE OF CONTRACTS ACCORDING TO MR SISKENS THE SUPERCOLLIDER ALLOTS LESS MONEY UP FRONT TO SUBCONTRACTORS THAN THEIR LIKELY COSTS FULLY EXPECTING TO MAKE ADDITIONAL REIMBURSEMENTS LATER AS NEEDED HE SAID THAT THE INSPECTOR GENERAL RECORDED ALL REIMBURSEMENTS BEYOND THE ORIGINAL ALLOTMENT AS COST OVERRUNS EVEN THOUGH THEY WEREN'T NECESSARILY UNEXPECTED MR SISKENS DEFENDED THE ENTERTAINMENT EXPENSES AS NECESSARY TO ATTRACT THE BEST PERSONNEL AND MAINTAIN EMPLOYEE MORALE HE ALSO SAID SOME ENTERTAINMENT FUNDS WERE USED TO PAY CONSULTANTS' EXPENSES RUSS WYLIE HEAD OF PUBLIC RELATIONS FOR THE SUPERCOLLIDER REJECTED AS RIDICULOUS ACCUSATIONS THAT THE SUPERCOLLIDER LAB DIDN'T COOPERATE WITH INVESTIGATORS IT IS THE POLICY OF THE LAB TO COMPLETELY ACCOMMODATE THE SSC HE SAID THE INVESTIGATORS PROBABLY FELT THEY WERE BEING STONEWALLED BECAUSE THEY CONSISTENTLY ASKED THE WRONG PEOPLE THE WRONG QUESTIONS AMONG THE ENTERTAINMENT EXPENSES QUESTIONED BY THE INSPECTOR GENERAL WERE 35000 FOR A HOLIDAY PARTY AT A DALLAS HOTEL FOR 1140 PEOPLE 16000 FOR CHRISTMAS PARTIES AND CARDS 51000 FOR FOOD DRINKS AND FLOWERS 56000 FOR DECORATIVE POTTED TROPICAL PLANTS AND 725 EACH FOR FOUR LOUNGE CHAIRS THESE NUMBERS COULD BE EMBARRASSING TO THE SUPERCOLLIDER PROJECT AN AIDE FOR REP SHERWOOD BOEHLERT R NY WHO OPPOSES THE SUPERCOLLIDER SAID THIS IS OBVIOUSLY INCREDIBLY DAMAGING IF WHAT THE DRAFT PURPORTS IS TRUE THESE NUMBERS ARE RIDICULOUS AND PART OF A PATTERN OF MISMANAGEMENT REP JOE BARTON R TEXAS A STAUNCH SUPPORTER OF THE PROJECT REPLIED I DON'T HAVE ANY PROBLEM IF WE WANT TO PUT AN AMENDMENT ON THE FLOOR TO RESTRICT SPENDING OF THAT NATURE ARGUING THAT THE PROJECT IS VERY IMPORTANT SCIENTIFICALLY HE ADDED IF WE CAN FOCUS ON THE SCIENTIFIC DEBATE AND AVOID DEBATING PROBLEMS WHICH CAN EASILY BE FIXED THIS VOTE CAN BE WON 9306230049 930623 FOREIGN EXCHANGE DOLLAR ADVANCES AGAINST THE MARK OTHER CURRENCIES AS RALLY SPILLS OVER BY XANDER MELLISH SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR CLIMBED AGAINST THE MARK FOR THE SEVENTH STRAIGHT DAY YESTERDAY AND THE RALLY'S MOMENTUM SPILLED OVER INTO ADVANCES AGAINST THE OTHER MAJOR CURRENCIES AS WELL LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16965 MARKS UP FROM 16883 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 11085 YEN UP FROM 11060 YEN STERLING WAS TRADING AT 14770 DOWN FROM 14886 IN TOKYO EARLY WEDNESDAY THE DOLLAR WAS TRADING AT 11080 YEN AND AT 16970 MARKS BEHIND THE US CURRENCY'S APPRECIATION TRADERS SAID WAS CONFIDENCE THAT GERMANY WILL SOON BE FORCED TO CUT INTEREST RATES TO FUEL ITS SPUTTERING ECONOMY LOWER GERMAN RATES WOULD LOWER THE RETURN ON MARKDENOMINATED INVESTMENTS DECREASING THE MARK'S APPEAL THE GERMANS ARE GOING TO HAVE TO CUT RATES AND THE LONGER THEY TAKE TO DO IT THE WORSE SHAPE THEY'RE GOING TO BE IN SAID BILL BERTHA CHIEF DEALER AT MELLON BANK IN PITTSBURGH THERE'S A GENERAL SENTIMENT NOW THAT PEOPLE LIKE THE DOLLAR AND THE MARK IS WEAK BECAUSE FUNDAMENTALS IN GERMANY ARE PRETTY BAD BUT GERMAN OFFICIALS TRIED TO PLAY DOWN THEIR CURRENCY'S WEAKNESS OTMAR ISSING CHIEF ECONOMIST AND AN INFLUENTIAL MEMBER OF THE BUNDESBANK'S GOVERNING BOARD SAID THE DOLLAR'S HIGHS WERE ONLY A CORRECTION AFTER THE US CURRENCY'S RECORD LOWS AGAINST THE MARK LAST FALL THE DOLLAR FELL EXTREMELY DEEPLY LAST YEAR AND NOW THE US ECONOMY IS CLEARLY RECOVERING AND BEGINNING TO COME OUT OF THE RECESSION MR ISSING SAID IN A TELEVISION INTERVIEW SO A REBOUND OF THE DOLLAR IS A NORMALIZATION TO A CERTAIN DEGREE AND NOT A WEAKNESS OF THE MARK NEVERTHELESS OTHER BUNDESBANK OFFICIALS SEEMED TO BE CLEARING THE WAY FOR RATE CUTS VICE PRESIDENT HANS TIETMEYER TOLD AN AUDIENCE IN MUENSTER GERMANY THAT HE SEES SIGNS OF FAVORABLE TRENDS IN CONTROLLING INFLATION AND MONEYSUPPLY GROWTH CONDITIONS THE BUNDESBANK HAD SAID IT WAS WAITING FOR BEFORE IT CUT RATES MR TIETMEYER ACKNOWLEDGED THAT THE BUNDESBANK POLICYMAKERS WOULD CAREFULLY PROBE ITS LATITUDE FOR INTERESTRATE CUTS REPURCHASE AUCTION THAT CUT COULD COME AS QUICKLY AS TODAY'S VARIABLERATE REPURCHASE AUCTION WHICH IS THE BUNDESBANK'S MAIN INSTRUMENT FOR CONTROLLING LIQUIDITY IN THE COUNTRY AND FINETUNING LENDING RATES TRADERS SAID ANY MOVE DOWNWARD FROM LAST WEEK'S 760 REPO RATE WOULD PROBABLY BE MINOR TO AVOID THE PROCEDURAL DISRUPTION OF HAVING OVERNIGHT RATES DROP TOO NEAR GERMANY'S FLOOR DISCOUNT RATE CURRENTLY AT 725 IF THERE IS A REPO RATE CUT TODAY IT'S GOING TO BE MINIMAL SAID CARL FORCHESKI A TRADER AT CHEMICAL BANK IN NEW YORK INSTEAD HE SAID THE BUNDESBANK WOULD PROBABLY WAIT UNTIL ITS NEXT BIWEEKLY POLICY MEETING SET FOR JULY 1 AND THEN ADDRESS POSSIBLE CHANGES IN THE LOMBARD RATE NOW AT 85 AND THE DISCOUNT RATE ITSELF THE DISCOUNT RATE IS THE BUNDESBANK'S CHEAPEST FORM OF FINANCING FOR GERMAN BANKS AND THEREFORE SERVES AS AN INTEREST RATE FLOOR WHILE THE LOMBARD RATE THE CENTRAL BANK'S LENDING FACILITY OF LAST RESORT IS OFTEN SEEN AS A RATE CEILING MEANWHILE THE MARK'S WEAKNESS AGAINST ITS EUROPEAN COUNTERPARTS ALONG WITH GERMANY'S ECONOMIC DIFFICULTIES SPURRED DISCUSSION AT THE EUROPEAN COMMUNITY SUMMIT IN DENMARK ABOUT WHETHER THE GERMAN CURRENCY COULD CONTINUE AS THE EUROPEAN MONETARY SYSTEM'S ANCHOR CURRENCY DOMINATING THE CONTINENT'S ECONOMIC AND MONETARY POLICIES TRADERS SCOFFED AT THE IDEA OF ANY CURRENCY BUT THE MARK AT THE CENTER OF THE EMS 9306230048 930623 EDUCATION BLACK ATHLETES IN SWITCH PICK BLACK COLLEGES BY SUZANNE ALEXANDER STAFF REPORTER OF THE WALL STREET JOURNAL AS A HIGHSCHOOL FOOTBALL STAR JASON HAMPTON HAD A WINNING RECORD SIX ACCEPTANCES FROM BIGTIME SPORTS COLLEGES INCLUDING THE UNIVERSITIES OF TEXAS OKLAHOMA AND ARKANSAS WHICH SCHOOL DID JASON SELECT TEXAS SOUTHERN UNIVERSITY A TRADITIONALLY BLACK SCHOOL IN HOUSTON I'M DOING THE SAME THING I'D BE DOING AT OKLAHOMA EXCEPT I'M HAPPY HERE SAYS MR HAMPTON A BLACK SOPHOMORE RUNNING BACK AT TEXAS SOUTHERN I VISITED THOSE OTHER SCHOOLS AND THEY DIDN'T HAVE THE TYPE OF SOCIAL ATMOSPHERE I'M COMFORTABLE WITH MR HAMPTON IS AMONG A GROWING NUMBER OF TOP BLACK HIGHSCHOOL ATHLETES WHO ARE REJECTING OFFERS TO ATTEND PREDOMINANTLY WHITE UNIVERSITIES IN FAVOR OF TRADITIONALLY BLACK COLLEGES THE TREND COULD EVENTUALLY MEAN MORE MONEY FOR STRAPPED BLACK COLLEGES IF TV CONTRACTS AND NATIONAL ATTENTION FOLLOW THE GOOD PLAYERS THE MOVES ARE THE REVERSE OF A TREND THAT BEGAN IN THE MID1960S WHEN DESEGREGATION AT THE BIG SCHOOLS RESULTED IN MORE SCHOLARSHIP OFFERS TO BLACK ATHLETES DRAINING TALENT FROM BLACK COLLEGES BUT WITH INCREASING RACIAL TENSION ON MANY MOSTLY WHITE CAMPUSES OVER THE PAST FEW YEARS COLLEGE OFFICIALS SAY THE PROSPECT OF BEING IN THE MAJORITY ON CAMPUS LOOKS MORE ATTRACTIVE TO BLACK ATHLETES THE POTENTIAL TO PLAY AT BETTER POSITIONS AND TO GET MORE PLAYING TIME ARE FACTORS TOO ALUMNI OF BLACK COLLEGES HAVE EXCELLED IN PROFESSIONAL FOOTBALL ADDING TO THE ALLURE OF THOSE SCHOOLS STAR SAN FRANCISCO 49ERS RECEIVERS JERRY RICE AND JOHN TAYLOR AS WELL AS FORMER WASHINGTON REDSKINS QUARTERBACK DOUG WILLIAMS ATTENDED TRADITIONALLY BLACK COLLEGES AUGUSTUS HOWARD SPORTSINFORMATION DIRECTOR FOR ALCORN STATE UNIVERSITY LORMAN MISS SAYS ALCORN HAS THREE TOP FOOTBALL PLAYERS WHO HAD BEEN ACCEPTED BY SUCH BIG SPORTS SCHOOLS AS THE UNIVERSITIES OF MIAMI NEBRASKA AND OKLAHOMA AND FLORIDA STATE AND LOUISIANA STATE UNIVERSITIES ONE PLAYER SOPHOMORE QUARTERBACK STEVE MCNAIR IS NOW BEING PROMOTED BY ALCORN AS A CANDIDATE FOR THE HEISMAN TROPHY MR MCNAIR LED THE NATIONAL COLLEGIATE ATHLETIC ASSOCIATION'S DIVISION 1AA SCHOOLS IN TOTAL PASSING AND RUSHING YARDS IN 1992 AND WAS NAMED SPORTS ILLUSTRATED'S OFFENSIVE PLAYER OF THE YEAR IN 1992 THE NATIONAL FOOTBALL LEAGUE DRAFTED 28 PLAYERS FROM BLACK COLLEGES COMPARED WITH 13 IN 1987 THIS YEAR BLACK SCHOOLS SENT ONLY NINE PLAYERS TO THE NFL IN THE DRAFT BUT THE OVERALL DRAFT WAS CUT BY 30 THIS YEAR AND BLACKCOLLEGE COACHES SAY THE NUMBER OF FREEAGENT SIGNINGS FROM THEIR SCHOOLS IS RISING MORE INTERESTED IN BLACKCOLLEGE SPORTS NBC IN 1991 BEGAN BROADCASTING THE BAYOU CLASSIC THE ANNUAL LOUISIANA GAME BETWEEN SOUTHERN AND GRAMBLING STATE UNIVERSITIES PAYING ABOUT 75000 A YEAR TO EACH SCHOOL FOR THE RIGHTS BUT BLACKCOLLEGE ATHLETIC PROGRAMS ARE HOPING FOR MORE IF THEY CAN KEEP ATTRACTING STARS CURRENTLY MANY TOP SPORTS SCHOOLS RECEIVE AS MUCH AS 450000 PER TELEVISED GAME NOT EVERY BLACK ATHLETE IS SOLD ON THE MERITS OF BLACK UNIVERSITIES OF COURSE KENNETH RILEY FOOTBALL COACH AT FLORIDA AGRICULTURAL AND MECHANICAL UNIVERSITY TALLAHASSEE SAYS HE STILL HAS TROUBLE COMPETING WITH RECRUITERS FROM SCHOOLS IN THE NCAA'S TOP DIVISION 1A NO BLACK COLLEGES COMPETE IN THAT DIVISION KIDS LOOK AT MATERIAL THINGS SAYS MR RILEY THEY LOOK AT BEING ON TV AND AT THE EXPOSURE THAT IN ITSELF PUTS YOU BEHIND THE EIGHT BALL BUT EDUCATIONAL CONCERNS HAVE SOME PLAYERS THINKING TWICE ABOUT LARGE MOSTLY WHITE UNIVERSITIES WHERE IT ISN'T UNCOMMON TO BE PLACED IN A CLASSROOM WITH 250 PEOPLE AND TO BE TAUGHT BY A GRADUATE STUDENT MACADOO HARRISONDIXON A SOPHOMORE PSYCHOLOGY MAJOR AT WEST VIRGINIA UNIVERSITY IS TRANSFERRING TO TRADITIONALLY BLACK DELAWARE STATE COLLEGE WHERE HE PLANS TO FINISH HIS DEGREE AND PLAY QUARTERBACK MR HARRISONDIXON WHO HAD BEEN ACCEPTED BY PENNSYLVANIA STATE AND SYRACUSE UNIVERSITIES AMONG OTHERS SAYS HE WAS TURNED OFF BY THE LARGE CLASSES IT WAS ALMOST IMPOSSIBLE TO GET IN TOUCH WITH TEACHERS TO GET ONEONONE ATTENTION COMPLAINS MR HARRISONDIXON WHO PLANS TO BECOME A LAWYER REGARDLESS OF WHETHER HE BECOMES A PRO FOOTBALL PLAYER DELAWARE IS THE KIND OF PLACE YOU CAN CALL HOME YOU DON'T HAVE GRADUATE STUDENTS TEACHING COURSES AND THE AVERAGE CLASS SIZE IS 26 OR 27 PEOPLE SOCIALLY MR HARRISONDIXON SAYS HE ALSO EXPECTS TO BE MORE COMFORTABLE THERE ARE SOME PLACES NEAR WEST VIRGINIA WHERE BLACKS CAN'T DRIVE THROUGH EVEN IN A TANK HE SAYS ON CAMPUS THERE'S LOTS OF NAMECALLING AND FISTFIGHTS HE SAYS AND THE ENVIRONMENT IS SEGREGATED ENOUGH TO HAVE PROMPTED THE SCHOOL'S BLACK PLAYERS TO FORM THEIR OWN CHURCH GROUP CALLED ATHLETES IN ACTION A SPOKESWOMAN FOR WEST VIRGINIA UNIVERSITY SAYS THE SCHOOL HAS BEEN WORKING HARD TO ADDRESS RACIAL INCIDENTS ON CAMPUS AND IN THE LOCAL COMMUNITY WE KNOW IT CAN BE TOUGH TO BE BLACK ON A PREDOMINANTLY WHITE CAMPUS IN A PREDOMINANTLY WHITE STATE SHE SAYS NOT ALL BLACK COLLEGIATE ATHLETES ARE CONCERNED ABOUT RACE RELATIONS BASKETBALL PLAYER LEONARD WHITE A SENIOR CRIMINAL JUSTICE MAJOR CHOSE SOUTHERN UNIVERSITY OVER 61 OTHER SCHOOLS THAT OFFERED TO ACCEPT HIM INCLUDING THE UNIVERSITY OF KENTUCKY AND GEORGETOWN UNIVERSITY BECAUSE HE WANTED LOTS OF PLAYING TIME AS A FORWARD AT OTHER SCHOOLS I PROBABLY WOULD HAVE HAD TO SPLIT MY TIME WITH EVERYONE ELSE SAYS MR WHITE RECRUITED OUT OF JUNIOR COLLEGE HE HAS SINCE SCORED 1292 POINTS IN HIS TWO SEASONS AT SOUTHERN 9306230047 930623 WHO'S NEWS GROUNDWATER SAYS CHAIRMAN RESIGNS CEO ASSUMES DUTIES NORWOOD MASS GROUNDWATER TECHNOLOGY INC SAID ITS CHAIRMAN AND SENIOR VICE PRESIDENT OF INTERNATIONAL OPERATIONS RESIGNED LAWRENCE A GOLDMUNTZ 71 YEARS OLD RESIGNED AS CHAIRMAN A POSITION HE HELD SINCE 1984 THE CONSULTING COMPANY SAID WALTER C BARBER 52 PRESIDENT AND CHIEF EXECUTIVE OFFICER HAS ASSUMED THE ADDITIONAL RESPONSIBILITIES OF CHAIRMAN THE COMPANY SAID THE BOARD WILL DECREASE TO SIX FROM SEVEN DIRECTORS TWO INSIDE AND FOUR OUTSIDE ON JUNE 10 GROUNDWATER TECHNOLOGY POSTED FOURTHQUARTER NET INCOME OF FIVE CENTS A SHARE INCLUDING RESTRUCTURING CHARGES OF ABOUT 12 CENTS A SHARE COMPARED WITH NET INCOME OF 37 CENTS A SHARE A YEAR EARLIER MR BARBER SAID THEN THAT HE WAS DISTURBED BY THE POOR EARNINGS PERFORMANCE COMPANY OFFICIALS SAID BOTH RESIGNATIONS WERE FOR PERSONAL REASONS AND HAD NO CONNECTION WITH THE RECENT EARNINGS RESULTS THE COMPANY SAID DR GOLDMUNTZ WILL CONTINUE TO SERVE ON ITS TECHNOLOGY DEVELOPMENT COMMITTEE AND WILL ADVISE THE CEO THE COMPANY SAID TED OWENS 40 RESIGNED AS SENIOR VICE PRESIDENT OF INTERNATIONAL OPERATIONS BUT WILL CONTINUE AS A DIRECTOR RICHARD LEWIS SENIOR VICE PRESIDENT AND PRINCIPAL HYDROGEOLOGIST WILL SERVE AS INTERIM GENERAL MANAGER OF INTERNATIONAL OPERATIONS DURING THE SEARCH TO FILL MR OWENS'S FORMER POSITION THE COMPANY SAID MR LEWIS 40 PREVIOUSLY SERVED AS A REGIONAL GENERAL MANAGER 9306230046 930623 CLOTHESTIME INC PLANS BUYBACK ANAHEIM CALIF CLOTHESTIME INC A WOMEN'S APPAREL STORE OPERATOR SAID ITS BOARD AUTHORIZED THE BUYBACK OF AS MANY AS 500000 COMMON SHARES OR 34 OF THE TOTAL OUTSTANDING AS WITH A SIMILAR BUYBACK LAST YEAR AT LEAST SOME OF THE ACQUIRED SHARES ARE DESIGNED TO BE ISSUED TO EXECUTIVES WHO ARE EXERCISING STOCK OPTIONS 9306230045 930623 BUSINESS BRIEF TEXFI INDUSTRIES INC FIRM SEES 3RDQUARTER NET FALLING 50 BELOW ESTIMATES TEXFI INDUSTRIES INC A TEXTILE AND APPAREL MAKER SAW ITS STOCK FALL 10 YESTERDAY AFTER ANNOUNCING THAT IT EXPECTS TO POST FISCAL THIRDQUARTER NET INCOME 50 LOWER THAN ANALYSTS HAD PROJECTED THE RALEIGH NC COMPANY ATTRIBUTED THE DECLINE IN PROFITS TO CONTINUED SOFTNESS IN TSHIRT SALES TEXFI'S ANNOUNCEMENT REFLECTS A BROADER DECLINE IN CONSUMER SPENDING THAT HURT RETAILERS AND APPAREL MAKERS IN RECENT MONTHS ANALYSTS SAID IN TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE TEXFI CLOSED AT 5375 DOWN 625 CENTS 9306230044 930623 NEW SECURITIES DEBUT WITH STUDENT LOANS USED FOR COLLATERAL NEW YORK SOCIETY STUDENT LOAN TRUST 1993A THE FIRST ASSETBACKED SECURITY TO USE STUDENT LOANS AS COLLATERAL HAS BEEN OFFERED TO THE INVESTING PUBLIC FIRST BOSTON CORP OFFERED 220 MILLION IN NOTES AS A THREEPART ISSUE BUILT ON STUDENT LOANS SOLD BY SOCIETY NATIONAL BANK A SOCIETY CORP UNIT AND SERVICED BY THE PENNSYLVANIA HIGHER EDUCATION ASSISTANCE AGENCY CLASS A1 NOTES COMPRISING 494 MILLION OF THE ISSUE HAVE AN AVERAGE LIFE EXPECTANCY OF 134 YEARS AND A CONSTANT PREPAYMENT RATE OF 7 EXPECTED FINAL PAYMENT IS OCT 25 1995 THE FIRST INTEREST/PRINCIPAL PAYMENT FOR THE CLASS IS ON OCT 25 1993 ITS RATE WILL FLOAT 20 BASIS POINTS ABOVE ONEMONTH LONDON INTERBANK OFFERED RATE CURRENTLY AT 3187 THE INITIAL COUPON IS 34031 AT PAR CLASS A2 NOTES COMPRISING 1484 MILLION OF THE ISSUE HAVE AN AVERAGE LIFE OF 541 YEARS EXPECTED FINAL PAYMENT IS OCT 25 2002 AND FIRST THE INTEREST PAYMENT IS OCT 25 THE CLASS HAS A TWOYEAR PRINCIPAL PAYMENT LOCKOUT AND FLOATS 45 BASIS POINTS OVER ONEMONTH LIBOR IT HAS AN INITIAL COUPON OF 36531 AND IS PRICED AT PAR SUBCLASS B NOTES COMPRISING 219 MILLION OF THE ISSUE HAVE AN AVERAGE LIFE OF 995 YEARS EXPECTED FINAL PAYMENT IS APRIL 25 2003 AND THE FIRST INTEREST PAYMENT IS OCT 25 1993 THE CLASS HAS A 925YEAR PRINCIPAL PAYMENT LOCKOUT THE CLASS FLOATS 75 BASIS POINTS OVER ONEMONTH LIBOR AND THE INITIAL COUPON IS 39531 AT PAR ALL THREE CLASSES ARE RATED TRIPLEA BY BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP 9306230043 930623 BUSINESS BRIEF ATMOS ENERGY CORP PLAN TO BUY GREELEY GAS FOR 65 MILLION ADVANCES ATMOS ENERGY CORP SAID IN DALLAS THAT IT REACHED A DEFINITIVE AGREEMENT IN ITS PLAN TO ACQUIRE GREELEY GAS CO DENVER IN A TRANSACTION VALUED AT ABOUT 65 MILLION TERMS CALL FOR ATMOS TO EXCHANGE 2330000 SHARES OF ITS COMMON FOR ALL GREELEY'S SHARES OUTSTANDING THE TRANSACTION IS SUBJECT TO APPROVAL BY ATMOS HOLDERS GREELEY WHICH IS CLOSELY HELD IS A NATURAL GAS SERVICE COMPANY ATMOS PROVIDES GAS SERVICES ATMOS CURRENTLY HAS ABOUT 71 MILLION SHARES OUTSTANDING 9306230042 930623 GROUP WANTS TO ELIMINATE TAX INCREASES ON SMALL FIRMS PAYING INDIVIDUAL RATES BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF MANUFACTURERS PLANS TO ASK THE SENATE FOR AN AMENDMENT TO THE CLINTON ADMINISTRATION'S BUDGET MEASURE THAT WOULD ELIMINATE TAX INCREASES ON SMALL BUSINESSES THAT PAY TAXES BASED ON INDIVIDUAL RATES WITHOUT SUCH A CHANGE THE GROUP ESTIMATES THAT MANY SMALL COMPANIES KNOWN AS SUBCHAPTER SCORPORATIONS WOULD FACE SUBSTANTIAL TAX INCREASES IF THEIR ANNUAL INCOMES EXCEED 140000 THE CATEGORY INCLUDES ABOUT 15 MILLION MOSTLY SMALL BUSINESSES UNDER THE ADMINISTRATION'S BILL WHICH WOULD IMPOSE NEW TAXES TO HELP REDUCE THE DEFICIT TAXES ON AN INDIVIDUAL'S INCOME ABOVE 140000 ANNUALLY WOULD INCREASE TO 36 FROM 31 CURRENTLY INCOMES HIGHER THAN 250000 WOULD BE TAXED AT A 396 RATE THE MAXIMUM CORPORATE RATE WOULD INCREASE TO 35 FROM 34 NAM PRESIDENT JERRY JASINOWSKI SAID THE ORGANIZATION WANTS THE TAX RATE TO REMAIN THE SAME ON THE BUSINESS PORTION OF THE INCOME OF A SUBCHAPTER SCORPORATION BUT THE GROUP SUGGESTS THAT TAXES ON A BUSINESS OWNER'S PERSONAL SALARY COULD INCREASE THE ASSOCIATION PLANS TO SEND LETTERS TO THE SENATORS URGING THE AMENDMENT AS EARLY AS TODAY SEPARATELY REPUBLICAN SEN ALFONSE D'AMATO OF NEW YORK SAID HE PLANS TO INTRODUCE LEGISLATION THAT WOULD PREVENT THE GOVERNMENT FROM IMPOSING HIGHER TAX RATES ON SOME SMALL COMPANIES THAN IT DOES ON FORTUNE 500 CORPORATIONS ADMINISTRATION OFFICIALS HAVE SAID THAT ONLY A SMALL FRACTION OF BUSINESSES WOULD BE AFFECTED BY THE HIGHER TAX RATES PROPOSED UNDER THE CLINTON PLAN SOME SUBCHAPTER SCORPORATIONS SUCH AS SOLE PROPRIETORSHIPS WOULDN'T EARN ENOUGH ANNUALLY TO INCUR A TAX INCREASE THE CATEGORY ALSO INCLUDES WEALTHY BUSINESS PARTNERSHIPS LIKE LAW FIRMS YESTERDAY NAM MEMBERS SAID MOST OF THEIR PERSONAL WEALTH HAS BEEN PLOWED BACK INTO BUSINESSES THAT CREATE JOBS WHEN I WANT TO SEE MY PERSONAL WEALTH I JUST WALK OUT ONTO THE SHOP FLOOR SAID RON BULLOCK PRESIDENT OF BISON GEAR & ENGINEERING CORP OF DOWNERS GROVE ILL THE COMPANY WHICH MAKES GEAR MOTORS USED IN MEDICAL EQUIPMENT HAS 124 EMPLOYEES AND 24 MILLION IN ANNUAL SALES MR BULLOCK SAID HE HAS TRIPLED BISON'S SALES AND DOUBLED THE COMPANY'S WORK FORCE SINCE HE BOUGHT THE COMPANY IN 1986 WITH PROCEEDS FROM A SECOND MORTGAGE ON HIS HOME AS CHIEF EXECUTIVE MR BULLOCK PAYS HIMSELF A 200000 YEARLY SALARY AND OWNS ALL THE STOCK IN THE FAMILYOWNED BUSINESS HE SAID ALL HIS ANNUAL PROFITS OF ABOUT 5 ARE INVESTED BACK INTO THE COMPANY 9306230041 930623 BUSINESS BRIEF SCITEX CORP FIRM SEES PROFIT FOR QUARTER AND YEAR MEETING ESTIMATES SCITEX CORP DESPITE BEING BUFFETED BY THE STRUGGLING EUROPEAN ECONOMY SAID IT EXPECTS EARNINGS FOR THE SECOND QUARTER AND YEAR TO FALL WITHIN THE RANGE OF ANALYSTS' ESTIMATES SCITEX BASED IN ISRAEL SAID THE EUROPEAN ECONOMY WHERE ABOUT 41 OF ITS REVENUE IS GENERATED HAS BEEN DIFFICULT THE COMPANY WHICH MAKES COMPUTERBASED IMAGING SYSTEMS PRIMARILY FOR THE PRINTING AND PUBLISHING INDUSTRY ADDED THAT THE JAPANESE MARKET WHICH REPRESENTS ABOUT 8 OF THE COMPANY'S REVENUE ALSO IS ROCKY FOR THE SECOND QUARTER SCITEX SAID IT WAS COMFORTABLE WITH ANALYSTS' ESTIMATES FOR NET INCOME OF ABOUT 34 MILLION OR 80 CENTS A SHARE IT ALSO EXPECTS NET INCOME FOR THE YEAR TO FALL WITHIN THE RANGE OF ANALYSTS' FORECASTS OF 1411 MILLION TO 1454 MILLION OR 332 TO 340 A SHARE FOR THE 1992 SECOND QUARTER SCITEX HAD PROFIT OF 30 MILLION OR 75 CENTS A SHARE ON REVENUE OF 134 MILLION FOR 1992 THE COMPANY HAD NET INCOME OF 1224 MILLION OR 302 A SHARE ON REVENUE OF 5497 MILLION 9306230040 930623 DIVIDEND NEWS FIRST MORTGAGE CORP FIRST MORTGAGE CORP DIAMOND BAR CALIF DECLARED A 5FOR4 STOCK SPLIT PAYABLE AUG 2 TO STOCK OF RECORD JULY 15 THE MORTGAGE BANKING COMPANY CURRENTLY HAS 48 MILLION SHARES OUTSTANDING 9306230039 930623 BUSINESS BRIEF CIRRUS LOGIC INC FISCAL 1STQUARTER REVENUE TO FALL FROM PRIOR PERIOD CIRRUS LOGIC INC SAID REVENUE FOR THE FISCAL FIRST QUARTER ENDING JULY 3 WILL BE DOWN 10 FROM THE PRECEDING QUARTER'S REVENUE OF 1046 MILLION THE CHIP MAKER ALSO EXPECTS TO POST A LOSS FROM OPERATIONS AS CUSTOMERS SHIFT THEIR PRODUCTION SCHEDULES TO COPE WITH MARKET CONDITIONS THE COMPANY IN FREMONT CALIF MAY NEED ADDITIONAL INVENTORY RESERVES OF UP TO 10 MILLION IT SAID CIRRUS SAID IT EXPECTS TO REPORT A LOSS FROM OPERATIONS FOR THE QUARTER BUT IT EXPECTS TO REPORT NET INCOME AND POSITIVE PERSHARE EARNINGS DUE TO THE SALE OF CERTAIN INVESTMENTS AND INCOME GENERATED BY AN ACCOUNTING CHANGE THE COMPANY MADE ITS COMMENTS YESTERDAY AFTERNOON FOLLOWING THE CLOSE OF TRADING CIRRUS SHARES CLOSED AT 99625 A SHARE UP 625 CENTS IN TRADING ON THE OVERTHECOUNTER MARKET 9306230038 930623 YOUR MONEY MATTERS WEIGH PROS CONS BEFORE TRADING BROKERS BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL SO YOU'RE STILL SMARTING OVER YOUR BROKER'S RECOMMENDATION TO BUY PHILIP MORRIS JUST BEFORE IT TANKED IN APRIL YOU'RE NOT VERY HAPPY WITH SOME OF THE OTHER INVESTMENTS HE'S SOLD YOU AND YOU'VE DECIDED TO TAKE YOUR BUSINESS ELSEWHERE YOU'RE NOT ALONE FOR A NUMBER OF DIFFERENT REASONS A MILLION OR MORE INVESTORS WILL MOVE THEIR BROKERAGE ACCOUNTS THIS YEAR SECURITIES CLEARING OFFICIALS SAY JUST LAST MONTH 115000 INVESTORS SWITCHED BROKERS A RATE THAT'S UP SLIGHTLY FROM A YEAR AGO ACCORDING TO THE NEW YORK STOCK EXCHANGE UNFORTUNATELY IT'S NOT GOING TO BE EASY FOR MANY INVESTORS TO SEVER THEIR TIES WITH THEIR OLD BROKER BROKERAGE FIRMS CREATE UNIQUE PRODUCTS SUCH AS THEIR OWN MUTUAL FUNDS LIMITED PARTNERSHIPS AND ANNUITIES AND THESE PROPRIETARY PRODUCTS DON'T MOVE FREELY FROM BROKER TO BROKER MOST LARGE BROKERAGE FIRMS HAVE CREATED PRODUCTS THAT TIE THE CUSTOMER TO THE INSTITUTION AND UNBUNDLING THESE CAN BE DIFFICULT SAYS SAL PALLENTE SENIOR VICE PRESIDENT OF THE BIG BOARD THE BOTTOM LINE IF YOU OWN MANY OF THESE PRODUCTS THINK LONG AND HARD BEFORE YOU MAKE A MOVE UNLESS YOU DO YOUR HOMEWORK AND MAKE SOME CAREFUL DECISIONS BEFORE THE MOVE BEGINS YOU COULD END UP RUNNING INTO A LOT MORE PROBLEMS THAN YOU BARGAINED FOR SAYS MICHAEL STALKER A CHARTERED FINANCIAL ANALYST FROM EUGENE ORE WHO ADVISES INDIVIDUALS AND RETIREMENT PLANS INVESTORS WHO HOLD ONLY COMMONLY TRADED STOCKS BONDS MUTUAL FUNDS AND EXCHANGETRADED PARTNERSHIPS HAVE IT A LOT EASIER FOR THEM THE SWITCH TO A DIFFERENT BROKERAGE FIRM SHOULD BE A SMOOTH PROCESS THAT IS COMPLETED IN ABOUT 10 BUSINESS DAYS SAYS MR PALLENTE AN INDIVIDUAL RETIREMENT ACCOUNT HOLDING THE SAME COMMONLY TRADED SECURITIES WILL TAKE A WEEK OR SO LONGER BECAUSE THIRDPARTY TRUSTEES MUST SIGN OFF THE BIG BOARD SAYS THE MOVE IS COMPLETED BY THE AUTOMATED CUSTOMER ACCOUNT TRANSFER SYSTEM KNOWN AS ACATS TO WHICH ALL MAJOR BROKERS BELONG BUT IF LIKE HUNDREDS OF THOUSANDS OF INVESTORS YOU OWN INHOUSE MUTUAL FUNDS OR OTHER PROPRIETARY PRODUCTS THAT CAN'T BE TRANSFERRED THROUGH ACATS MOVING TO A NEW BROKER IS MORE COMPLICATED YOU'LL HAVE TO DECIDE WHETHER TO LEAVE THESE PROPRIETARY INVESTMENTS WITH YOUR OLD FIRM OR SELL THEM AND MOVE THE CASH TO YOUR NEW BROKER TO BUY NEW INVESTMENTS SAYS MR PALLENTE YOUR CHOICE WILL BE MORE DIFFICULT IF YOUR PROPRIETARY MUTUAL FUND HAS A DEFERRED SALES CHARGE SELLING THESE INVESTMENTS BEFORE A SPECIFIED DEADLINE USUALLY FIVE YEARS CAN TRIGGER CHARGES THAT RUN AS HIGH AS 6 OF YOUR ASSET ON A 100000 MUTUALFUND INVESTMENT THAT'S 6000 DEFINITELY NOT SMALL CHANGE THESE DEFERRED SALES CHARGES ARE COMMON THERE ARE 312 MUTUAL FUNDS WITH THESE BACKEND LOADS SAYS JOHN REKENTHALER EDITOR OF MORNINGSTAR MUTUAL FUNDS A CHICAGO PUBLICATION THAT TRACKS MUTUALFUND PERFORMANCE OTHER FUNDS HAVE REDEMPTION FEES WHICH USUALLY RUN ABOUT 1 HE SAYS ANNUITIES ALSO HAVE SURRENDER CHARGES MEANWHILE IT'S LIKELY THAT YOUR NEW BROKER WILL BE TRYING TO CONVINCE YOU TO SELL ALL YOUR OLD INVESTMENTS SAYS MARY CALHOUN A SECURITIESARBITRATION CONSULTANT FROM WATERTOWN MASS BROKERS ARE BEING PRESSURED BY THEIR FIRMS TO BRING ASSETS UNDER MANAGEMENT THEY ALSO WANT TO GET THE COMMISSIONS FOR BUYING NEW INVESTMENTS TO REPLACE THE OLD ONES THEY ALSO MAY SINCERELY BELIEVE THEIR INVESTMENTS ARE BETTER HOW DO YOU WEIGH THE OPTIONS IF YOU HAVEN'T PASSED THE DEADLINE AND THE FUND IS A LOSER YOU CAN SELL IT PAY THE LOAD TAKE A CAPITAL LOSS ON YOUR INCOME TAX FOR THIS YEAR AND START OVER WITH A NEW NOLOAD FUND IT MAY BE WORTHWHILE TO LIQUIDATE A LOSING FUND EVEN IF YOU HAVE TO PAY A CHARGE IF THE ANNUAL EXPENSE LEVELS ARE HIGH SAYS MR STALKER BY BUYING A BETTERPERFORMING NOLOAD FUND WITH LOW EXPENSES YOU MAY BE ABLE TO MAKE UP THE DIFFERENCE IN A FEW YEARS HE SAYS IF THE FUND IS PERFORMING WELL OR AT LEAST ADEQUATELY AND THERE IS STILL A LOAD PENDING IT MAY BE WORTHWHILE TO LEAVE IT WITH YOUR OLD BROKER SAYS MS CALHOUN PEOPLE SHOULDN'T HAVE TO GIVE IN TO BROKERS' PRESSURE TO SELL THE OLD INVESTMENTS YOU CAN MAKE A PARTIAL TRANSFER OF YOUR ACCOUNT TO YOUR NEW BROKER LEAVING THE PROPRIETARY PRODUCTS BEHIND SHE SAYS MOVING AN ACCOUNT CAN ALSO ENTAIL SPECIAL FEES SOME BROKERAGE FIRMS CHARGE 50 EXIT FEES FOR CUSTOMERS WHO CLOSE THEIR ACCOUNTS AND MOVE ASSETS TO ANOTHER FIRM SHEARSON LEHMAN BROTHERS AND PRUDENTIAL SECURITIES LEVY SUCH A FEE TO COVER THE COSTS OF PAPERWORK THEY SAY MOST FIRMS CHARGE 50 TO TRANSFER AN IRA SAYS JEANETTE SMITH EQUITIES TRANSFER MANAGER AT DISCOUNT BROKER CHARLES SCHWAB & CO BUT YOUR NEW BROKER MAY BE SO HAPPY TO GET YOUR ACCOUNT THE FIRM WILL PAY ALL OR PART OF YOUR EXIT FEES THROUGH JULY 31 SCHWAB WILL REBATE EXIT FEES AT A RATE OF 1 PER EVERY 1000 OF ASSETS TRANSFERRED CASH MANAGEMENT ACCOUNTS CAN ALSO CAUSE HEADACHES IN A MOVE IT'S A GOOD IDEA TO WRITE A CHECK TO YOURSELF TO GET YOUR MONEY OUT OF THE ACCOUNT BEFORE YOU BEGIN THE TRANSFER PROCESS SAYS GIL NAGEL MANAGER OF CUSTOMER ACCOUNT SERVICES AT AG EDWARDS & CO OTHERWISE YOUR MONEY COULD BE LOCKED UP FOR 10 DAYS HE SAYS DON'T WRITE CHECKS ON THE OLD CASH MANAGEMENT ACCOUNT DURING THAT TIME BECAUSE THE OLD FIRM MAY BOUNCE THEM HE ADDS FILL OUT A TRANSFER FORM AT THE NEW BROKERAGE FIRM LISTING ALL INVESTMENTS AND ATTACH THE LATEST STATEMENT FROM YOUR OLD FIRM FIND OUT FROM YOUR NEW BROKER WHICH INVESTMENTS WILL TRANSFER AND WHICH WON'T DECIDE WITH YOUR INVESTMENT ADVISER WHICH PROPRIETARY INVESTMENTS TO SELL AND WHICH TO KEEP AT THE OLD BROKERAGE FIRM CLOSE OUT YOUR CASH MANAGEMENT ACCOUNT AT THE OLD FIRM BEFORE YOU BEGIN THE TRANSFER GIVE YOUR NEW BROKER ANY LIMIT OR STOPLOSS ORDERS YOU WISH TO CONTINUE ORDERS GIVEN TO YOUR OLD BROKER WILL AUTOMATICALLY BE CANCELED WHEN THE TRANSFER OCCURS 9306230037 930623 TECHNOLOGY & HEALTH ORGANTRANSPLANT RECIPIENTS OFTEN PAY HOSPITALS HEFTY MARKUPS STUDY ASSERTS BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE LUCKY PATIENTS WHO GET THEM HEARTS KIDNEYS AND OTHER ORGANS DONATED FOR TRANSPLANT OPERATIONS CAN BE THE GIFT OF LIFE FOR SOME HOSPITALS THE ORGANS MEAN CASH A NEW STUDY SAID THAT MEDICAL CENTERS THAT PERFORM ORGANTRANSPLANT SURGERY OFTEN CHARGE PATIENTS OR THEIR INSURERS AS MUCH AS THREE TIMES WHAT IT COSTS TO ACQUIRE THE ORGANS THE PROCUREMENT CHARGES ARE BILLED TO PATIENTS IN ADDITION TO HOSPITAL SURGEON AND OTHER FEES ASSOCIATED WITH TRANSPLANT OPERATIONS IT'S CLEAR THAT THE GIFT OF LIFE' CAN BE FINANCIALLY LUCRATIVE TO HOSPITALS ROGER W EVANS HEAD OF HEALTH SERVICES EVALUATION AT THE MAYO CLINIC ROCHESTER MINN SAID IN THE REPORT WHICH APPEARS IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION HOSPITALS TYPICALLY GET HEARTS KIDNEYS LIVERS LUNGS AND PANCREASES FROM ORGANIZATIONS SET UP TO PERSUADE FAMILIES OF DECEASED PERSONS TO DONATE THEM FOR TRANSPLANT THE STUDY BASED ON 29 OF THE TRANSPLANTS DONE IN THE US IN 1988 FOUND THAT HOSPITALS GENERALLY CHARGED PATIENTS BETWEEN 10000 AND 24000 FOR A DONATED ORGAN CHARGES RANGED FROM 390 FOR A HEART TO 87629 FOR A KIDNEY WHILE THE REPORT CONTAINS LITTLE HARD DATA ON WHAT HOSPITALS PAY THE PROCUREMENT ORGANIZATIONS FOR THE ORGANS DR EVANS SAID THAT IN CASES WHERE HE OBTAINED INFORMATION FROM BOTH HOSPITALS AND THEIR PROCUREMENT GROUPS BILLS SENT TO PATIENTS REFLECTED MARKUPS OF AS MUCH AS 200 FOR PROCUREMENT SERVICES THE MARKUPS REFLECT A LACK OF ACCOUNTABILITY IN HOW TRANSPLANT PROGRAMS ARE RUN DR EVANS ASSERTED HE SAID THE HIGH AND WIDELY VARYING PRICES COULD JEOPARDIZE BOTH INSURANCE COVERAGE AND THE SUPPLY OF DONATED ORGANS WHICH IS ALREADY FAR SHORT OF DEMAND SOME HEALTH ANALYSTS THINK MONEY PAID FOR TRANSPLANT PROCEDURES WHICH GENERALLY COST FROM ABOUT 50000 TO 210000 DEPENDING ON THE ORGAN MIGHT BE BETTER SPENT ON OTHER HEALTH SERVICES IN ADDITION DR EVANS SAID THAT FAMILIES WHO AGREE TO DONATE ORGANS MIGHT HAVE SECOND THOUGHTS IF THEY THINK OTHERS ARE MAKING MONEY FROM THEIR ALTRUISM TRANSPLANTATION IS ENGENDERING ITS OWN VERSION OF A HEALTHCARE POLICY CRISIS IT DESPERATELY NEEDS TO AVOID HE SAID WHAT'S INCLUDED IN PROCUREMENT COSTS CAN VARY BUT THEY TYPICALLY INCLUDE HOSPITAL AND INTENSIVECARE EXPENSES FOR THE DONOR REMOVING THE ORGANS LABORATORY TESTS AND COSTS OF TRANSPORTING THE ORGAN TO THE TRANSPLANT CENTER SAID SUSAN GUNDERSON EXECUTIVE DIRECTOR OF LIFESOURCE UPPER MIDWEST ORGAN PROCUREMENT ORGANIZATION INC MINNEAPOLIS ONE OF MORE THAN 70 SUCH NOTFORPROFIT AGENCIES AROUND THE US SHE SAID HER ORGANIZATION CURRENTLY CHARGES TRANSPLANT PROGRAMS 11000 FOR A KIDNEY SHE DIDN'T HAVE DATA FOR 1988 DR EVANS SAID THAT THE FEDERAL MEDICARE PROGRAM WHICH PAYS FOR MANY TRANSPLANT OPERATIONS DELIBERATELY MAINTAINS A FLEXIBLE REIMBURSEMENT POLICY FOR PROCUREMENT TO MINIMIZE ANY FINANCIAL BARRIERS TO OBTAINING ORGANS SUCH FLEXIBILITY REDUCES INCENTIVES FOR PROVIDERS TO RUN EFFICIENT PROGRAMS SAID FRANK A SLOAN OF DUKE UNIVERSITY'S CENTER FOR HEALTH POLICY RESEARCH AND EDUCATION DURHAM NC IN AN EDITORIAL ACCOMPANYING THE STUDY DR SLOAN ALSO SAID PATIENT DIFFERENCES MAY EXPLAIN SOME OF THE VARIATION IN CHARGES MARKUPS AMONG OTHER THINGS MAY REFLECT COSTSHIFTING THAT IS TYPICAL IN HOSPITALS WHICH BUILD HIGH MARGINS INTO CHARGES FOR SOME PROCEDURES TO SUBSIDIZE SERVICES THAT LOSE MONEY 9306230036 930623 DIVIDEND NEWS GREAT WESTERN FINANCIAL CORP GREAT WESTERN FINANCIAL CORP'S DIRECTORS DECLARED A QUARTERLY OF 109375 A DEPOSITARY SHARE REPRESENTING ONEFIFTH OF A SHARE ON THE 8 3/4 CUMULATIVE CONVERTIBLE PREFERRED STOCK DIRECTORS ALSO DECLARED A QUARTERLY OF 51875 CENTS A DEPOSITARY SHARE REPRESENTING ONETENTH OF A SHARE ON THE 830 CUMULATIVE PREFERRED STOCK BOTH DIVIDENDS WILL BE PAID AUG 1 TO STOCK OF RECORD JULY 15 GREAT WESTERN BASED IN CHATSWORTH CALIF IS A BANK HOLDING COMPANY 9306230035 930623 MARKETING & MEDIA TIME WARNER PLANS TO FORM VENTURE WITH QUINCY JONES BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC IS FORMING A MULTIMEDIA COVENTURE WITH VETERAN MUSIC PRODUCER AND ENTERTAINMENT IMPRESARIO QUINCY JONES AND HIS PARTNER TELEVISION PROGRAMMING EXECUTIVE DAVID SALZMAN UNDER THE SEVENYEAR ARRANGEMENT TIME WARNER'S 875OWNED TIME WARNER ENTERTAINMENT PARTNERSHIP WILL BANKROLL THE OVERHEAD FOR QUINCY JONES+DAVID SALZMAN ENTERTAINMENT OR QDE IN ADDITION TIME WARNER WILL COVER THE COSTS OF FILMS TELEVISION AND CABLE PROGRAMS AND MUSIC PRODUCED BY MESSRS JONES AND SALZMAN THE TWO ALSO WILL BE INVOLVED IN MAGAZINE PUBLISHING LIVE ENTERTAINMENT AND DIRECTRESPONSE MARKETING FINANCIAL TERMS WERE NOT DISCLOSED THE NEW COVENTURE CAPS A LONGRUNNING RELATIONSHIP BETWEEN QDE PARTNERS AND TIME WARNER MR JONES'S RELATIONSHIP WITH TIME WARNER FLOURISHED UNDER LATE CHAIRMAN STEVEN ROSS WHOSE WIFE COURTNEY PRODUCED A DOCUMENTARY FILM ABOUT MR JONES LISTEN UP THAT HAD A BRIEF AND UNSUCCESSFUL BOX OFFICE RUN MR JONES ALSO HAS A RECORD LABEL AND A RAP MAGAZINE VIBE FINANCED BY TIME WARNER IT WAS MR ROSS WHO PROPOSED THE IDEA OF A COVENTURE WITH MESSRS JONES AND SALZMAN BEFORE HIS DEATH LAST DECEMBER MR SALZMAN IS A FORMER EXECUTIVE OF TIME WARNER'S LORIMAR TELEPICTURES UNIT AND WAS A FOUNDER OF THE ORIGINAL TELEPICTURES A TV PRODUCTION AND SYNDICATION CONCERN ACQUIRED BY LORIMAR WITH TIME WARNER WE ARE SINGULARLY POSITIONED TO DO EVERYTHING AND THAT'S A NICE FEELING MR JONES SAID IN A TELEPHONE INTERVIEW ADDED MR SALZMAN TIME WARNER WILL MAKE THE RESOURCES AVAILABLE QDE ALREADY HAS SEVERAL FILMS IN DEVELOPMENT INCLUDING HOOVER A PORTRAIT OF THE LATE FEDERAL BUREAU OF INVESTIGATION DIRECTOR J EDGAR HOOVER TO BE COPRODUCED WITH FRANCIS FORD COPPOLA TWO FILMS ARE BASED ON MAD MAGAZINE CHARACTERS INCLUDING ALFRED E NEWMAN IN TELEVISION MESSRS JONES AND SALZMAN WILL CONTINUE AS EXECUTIVE PRODUCERS OF THE NBCTV SERIES THE FRESH PRINCE OF BELAIR AND THE CBS SERIES DARK JUSTICE THEY ALSO ARE EXECUTIVE PRODUCERS WITH BRANDON TARTIKOFF WHO HEADED BOTH PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT STUDIO AND GENERAL ELECTRIC CO'S NBC ENTERTAINMENT UNIT OF BIG TIME TV AN EDUCATIONAL COMEDYMUSIC CHILDREN'S SERIES IN THE INTERVIEW MR JONES SAID FOX BROADCASTING IS ORDERING SEVERAL EPISODES OF THE SHOW IN ADDITION TO VIBE WHICH HAS PUBLISHED ONE TEST ISSUE AND STARTS REGULAR MONTHLY PUBLICATION IN SEPTEMBER QDE IS DEVELOPING TWO OTHER MAGAZINES WHICH THE PRINCIPALS DECLINED TO IDENTIFY WITHOUT ELABORATING THEY ALSO SAID QDE IS DEVELOPING TWO INTERACTIVE CHANNELS FOR THE ELECTRONIC SUPERHIGHWAY CABLE SYSTEM THAT TIME WARNER IS BUILDING IN ORLANDO FLA 9306230034 930623 AKZO TO SELL A UNIT AMSTERDAM DUTCH CHEMICAL PRODUCER AKZO NV SAID IT AGREED TO SELL ITS EUROPEAN PAPER CHEMICAL BUSINESS TO SWEDISH NOBEL EKA AB A UNIT OF NOBEL INDUSTRIER AB TERMS OF THE SALE WEREN'T DISCLOSED AKZO SAID THE PAPER CHEMICAL OPERATIONS WHICH EMPLOY 140 PEOPLE IN GERMANY ITALY AND SPAIN NO LONGER FIT INTO ITS CORE ACTIVITIES A SPOKESMAN SAID HOWEVER THAT SIMILAR ACTIVITIES IN NORTH AMERICA AREN'T INCLUDED IN THE SALE THE AKZO OFFICIAL SAID NO INFORMATION IS AVAILABLE ABOUT SALES OR PROFITABILITY OF THE UNIT WHICH HE CHARACTERIZED AS ONE OF AKZO'S SMALL ACTIVITIES 9306230033 930623 WHO'S NEWS SANTA ANITA OPERATING CO SANTA ANITA OPERATING CO ARCADIA CALIF STEPHEN F KELLER WAS NAMED CHAIRMAN OF THIS THOROUGHBRED RACING CONCERN SUCCEEDING ROBERT P STRUB WHO DIED LAST MONTH MR KELLER 54 YEARS OLD HAS BEEN PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY SINCE JULY 1991 AND CHIEF EXECUTIVE OFFICER SINCE FEBRUARY WHEN MR STRUB RETIRED MR KELLER A FORMER INVESTMENT BANKER ALSO IS CHAIRMAN OF SANTA ANITA REALTY ENTERPRISES CO WHICH IS PAIRED FOR TRADING WITH SANTA ANITA OPERATING CO 9306230032 930623 BUSINESS BRIEF KEYCORP BANK CONCERN OFFERS TO SWAP STOCK TO ACQUIRE EVERGREEN KEYCORP OFFERED TO ACQUIRE TROUBLED EVERGREEN BANCORP IN A STOCK SWAP THE OFFER DETAILS OF WHICH WEREN'T DISCLOSED WILL EXPIRE ON JUNE 30 KEYCORP SAID EVERGREEN'S SHARES SURGED 15 TO CLOSE AT 1575 UP 2 IN NATIONAL OVERTHECOUNTER TRADING KEYCORP STOCK FELL 375 CENTS TO 39875 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE EVERGREEN EARLIER SAID IT WAS IN TALKS WITH COMPANIES THAT HAD EXPRESSED INTEREST IN ACQUIRING IT THE GLENS FALLS NY BANK HOLDING COMPANY WHICH HAS ABOUT 900 MILLION IN ASSETS SUSPENDED DIVIDEND PAYMENTS IN ITS FIRST QUARTER PARTLY DUE TO CONCERN OVER THE HIGH VOLUME OF NONPERFORMING LOANS IN THE PORTFOLIO OF ITS UNIT FIRST NATIONAL BANK OF GLENS FALLS SEPARATELY KEYCORP A MULTIREGIONAL BANK HOLDING COMPANY BASED IN ALBANY NY AGREED TO ACQUIRE JACKSON COUNTY FEDERAL BANK OF MEDFORD ORE IN A STOCK SWAP VALUED AT 491 MILLION THE PROPOSED ACQUISITION IS SUBJECT TO CONDITIONS INCLUDING APPROVAL OF JACKSON COUNTY FEDERAL'S SHAREHOLDERS AND REGULATORY AUTHORITIES UPON CONSUMATION OF THE TRANSACTION JACKSON COUNTY FEDERAL WOULD BECOME PART OF KEY BANK OF OREGON 9306230031 930623 INTERNATIONAL LLOYD'S OF LONDON POSTS BIG LOSS RAISING FEARS ON MARKET'S VIABILITY RESULT BRINGS MORE ANGUISH TO INVESTORS MAY HURT BID FOR FRESH CAPITAL BY NICHOLAS BRAY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LLOYD'S OF LONDON POSTED A MASSIVE LOSS FOR ITS LATEST YEAR UNDERSCORING WORRIES ABOUT THE LONGTERM VIABILITY OF THE VENERABLE INSURANCE MARKET IN BUSINESS MORE THAN 300 YEARS LLOYD'S SAID IT INCURRED A LOSS OF 291 BILLION 433 BILLION FOR 1990 ITS LATEST REPORTING YEAR COMING ON TOP OF DEFICITS OF 21 BILLION FOR 1989 AND 510 MILLION FOR 1988 THE LOSS BROUGHT NEW ANGUISH TO LLOYD'S INVESTORS SOME OF WHOM ALREADY ARE FACING FINANCIAL COLLAPSE AND RAISES FURTHER QUESTIONS ABOUT THE MARKET'S BID FOR NEW CAPITAL THE 1990 DEFICIT REPRESENTS IN EVERY WAY THE LOW POINT OF LLOYD'S HISTORY IN THE LAST 305 YEARS CHAIRMAN DAVID ROWLAND SAID BUT HE BEGGED INVESTORS NOT TO ABANDON SHIP PART OF THE 1990 LOSSES WERE THE RESULT OF HEAVY CLAIMS FOLLOWING STORM DAMAGE IN BRITAIN AND CONTINENTAL EUROPE IN THE EARLY MONTHS OF THE YEAR BUT A LARGE PART WAS CAUSED BY CLAIMS IN THE US RELATING TO ASBESTOSIS AND POLLUTION INSURANCE BUSINESS WRITTEN IN PREVIOUS YEARS UNLIKE CORPORATIONS WHICH GO BANKRUPT AFTER THEY RUN OUT OF CAPITAL LLOYD'S IS A MARKETPLACE AND CAN CONTINUE IN BUSINESS AS LONG AS ITS MEMBERS CHOOSE TO SELL INSURANCE AT LLOYD'S BUT THAT DOESN'T MEAN THEY ALWAYS WILL SOME LLOYD'S MEMBERS KNOWN AS NAMES HAVE CHOSEN TO QUIT LLOYD'S RATHER THAN RISK EXPOSURE TO MORE LOSSES THEY'RE PARTICULARLY SENSITIVE TO LOSSES BECAUSE IN EXCHANGE FOR THE PRIVILEGE OF SELLING INSURANCE AT LLOYD'S THEY HAVE ACCEPTED UNLIMITED PERSONAL LIABILITY MEANING THEY CAN LOSE THEIR ENTIRE FORTUNES IF INSURANCE CLAIMS BECOME TOO HEAVY AS A WAY OF SHORING UP THE MARKET LLOYD'S EARLIER THIS YEAR PROPOSED OPENING ITS DOORS FOR THE FIRST TIME TO CORPORATE CAPITAL WITH LIMITED LIABILITY MR ROWLAND REITERATED YESTERDAY THAT HE WAS CONVINCED THIS WAS THE ONLY WAY TO ENSURE THAT LLOYD'S HAS ENOUGH CAPITAL TO CONTINUE OPERATING EFFECTIVELY BUT THE 1990 LOSS IS LIKELY TO MAKE EVEN MORE DIFFICULT WHAT ALREADY HAS PROVEN TO BE AN ARDUOUS SEARCH FOR OUTSIDE FUNDS THESE RESULTS INEVITABLY MAKE US A BIT RESERVED ABOUT THE LIKELIHOOD OF SUCCESS IN RAISING CORPORATE CAPITAL SAID JOHN RUSSELL AN INSURANCE ANALYST AT HOARE GOVETT A LONDON BROKERAGE FIRM GIVEN THE UNCERTAINTIES STILL SURROUNDING THE MARKET AND ITS ORGANIZATION MR RUSSELL SAID IF THE CAPITAL GOES THERE WHAT CONTROLS ARE TO BE PUT ON THE UNDERWRITERS THE UNDERWRITERS DECIDE WHAT INSURANCE BUSINESS THE CAPITAL WILL BE USED TO BACK FOR TWO YEARS LLOYD'S HAS BEEN CAUGHT IN A DEBILITATING WAR OF LITIGATION VARIOUS PLAYERS WHO ARRANGE AND UNDERWRITE THE INSURANCE ARE SUING EACH OTHER LEFT AND RIGHT OVER THE LOSSES AND THE INSTITUTION OF LLOYD'S ITSELF IS UNDER ATTACK SOME RUINED NAMES HAVE BEEN UNABLE TO MEET THEIR OBLIGATIONS WHILE OTHERS ARE THREATENING TO WITHHOLD THE FUNDS THEY OWE IN A TOUGHLY WORDED SPEECH TO LLOYD'S ANNUAL GENERAL MEETING MR ROWLAND APPEALED TO MEMBERS NOT TO PUSH THE MARKET OVER THE BRINK FORCING LLOYD'S TO CEASE TRADING AS SOME OF THE NAMES WORST HIT BY LOSSES HAVE SUGGESTED WOULD BE A DISASTER OF ALMOST UNIMAGINABLE PROPORTIONS HE DECLARED DETAILING IN STARK TERMS THE LIKELY CONSEQUENCES OF SUCH AN ACTION HE SAID CLOSURE WOULD MEAN TENS OF THOUSANDS OF JOBS LOST THE END OF LONDON AS THE INTERNATIONAL INSURANCE CENTER AND A FURTHER ILLUSTRATION TO THE WORLD OF THE TERMINAL DECLINE OF BRITAIN AS A GREAT TRADING NATION NOR WOULD IT PROVIDE AN EASY WAY OUT FOR BELEAGURED NAMES MR ROWLAND ADDED NAMES WOULD REMAIN LIABLE COME WHAT MAY FOR ALL INSURANCE CONTRACTS UNDERWRITTEN BY THEM STEPS WOULD BE TAKEN TO FREEZE OUR ASSETS AND THE COST OF ORGANIZING A RUNOFF' OF OUR LIABILITIES WOULD BE ENORMOUS NO NEW INCOME WOULD BE GENERATED FROM NEW BUSINESS AND THE NAMES CONCERNED WOULD BE LEFT TO PAY FOR ADMINISTRATION AND CLAIMS WITH EVERY LAWYER IN THE WORLD CHASING THEM INSTEAD MR ROWLAND APPEALED TO THOSE NAMES WHO COULD CONTINUE UNDERWRITING TO GO ON SUPPORTING THE MARKET AND TRADE THEIR WAY OUT OF THEIR PAST LOSSES TRADING CONDITIONS HAD IMPROVED SUBSTANTIALLY IN RECENT MONTHS HE SAID AND A MAJOR OVERHAUL OF LLOYD'S ORGANIZATION AND CAPITAL STRUCTURE WAS NOW UNDER WAY MEASURES WERE BEING TAKEN TO IMPROVE EFFICIENCY INCLUDING A CLAMPDOWN ON CENTRAL SPENDING HE SAID AND A PROCESS OF MERGERS BETWEEN UNDERWRITING AGENCIES HAD STARTED AND WOULD CONTINUE BUT MR ROWLAND ALSO SAID LLOYD'S WOULD HAVE TO REVIEW OTHER ASPECTS OF THE WAY IT DOES BUSINESS INCLUDING ITS TRADITION OF ONE MAN ONE VOTE IN DECIDING ON MARKET RULES WITH THE REMOVAL OF UPPER LIMITS ON INDIVIDUALS' UNDERWRITING CAPACITY AND THE INTRODUCTION OF CORPORATE CAPITAL HE INDICATED A VOTING SYSTEM LINKED TO THE SCALE OF EACH MEMBER'S MARKET PARTICIPATION MIGHT BE MORE APPROPRIATE SUCH A PROPOSAL SEEMS LIKELY TO AROUSE NEW CONTROVERSY AS THE MARKET BRACES ITSELF FOR FURTHER ASYETUNQUANTIFIED LOSSES FOR 1991 THE NUMBER OF ACTIVE MARKET MEMBERS HAS ALREADY DWINDLED TO 19537 THIS YEAR FROM A PEAK OF 32433 IN 1988 AND A FURTHER EXODUS IS EXPECTED AT THE END OF THIS YEAR BECAUSE OF CONTINUING LOSSES EVEN SOME MEMBERS WHO WANT TO GO ON UNDERWRITING AREN'T SURE WHETHER THEY WILL BE ABLE TO CONTINUE FULFILLING THE MARKET'S SOLVENCY REQUIREMENTS THE PROBLEM SAID TONY BUCKLEY A PUBLISHER OF CORPORATE MAGAZINES WHO LOST MORE THAN 50000 AT LLOYD'S IN 1990 IS THAT I DON'T KNOW WHAT THE WORSTCASE SCENARIO IS A MEMBER OF LLOYD'S SINCE 1979 HE LIKE MANY OTHERS HAS SEEN ALL OF HIS EARLIER PROFITS WIPED OUT IN THE PAST THREE YEARS 9306230030 930623 FEARING NORTHWEST MAY FAIL AIRLINES IN ASIA SEEK LIMITS ON US CARRIERS BY SUSAN CAREY AND MIRIAM JORDAN STAFF REPORTERS OF THE WALL STREET JOURNAL FEARING EFFECTS OF A POSSIBLE BANKRUPTCY FILING BY NORTHWEST AIRLINES ASIA'S LEADING AIRLINES URGED THEIR GOVERNMENTS TO LIMIT THE PRESENCE IN THE PACIFIC RIM OF THE WINGS HOLDINGS INC UNIT AND OTHER US CARRIERS BY RENEGOTIATING BILATERAL PACTS THE ORIENT AIRLINES ASSOCIATION A TRADE GROUP OF 15 LEADING CARRIERS IN MANILA PHILIPPINES CONCLUDED IN A STUDY THAT UNBALANCED AND OUTDATED BILATERAL AIR AGREEMENTS FAVOR US AIRLINES ITS CHAIRMAN CHATRACHAI BUNYAANANTA SAID THE GROUP IS NO LONGER WILLING TO ACCEPT THE LONGTERM IMPOSITION OF INEQUITABLE BILATERAL AGREEMENTS WHICH DISADVANTAGE MEMBER AIRLINES AND THE PASSENGERS THEY SERVE WHILE IT WASN'T THE ONLY SUBJECT OF THE STUDY NORTHWEST PLAYED AN IMPORTANT ROLE BECAUSE IT IS THE NO 2 US CARRIER IN THE REGION AND UNTIL 1989 GENERATED HEFTY PROFITS IN THE ASIAPACIFIC AREA THE COMPANY'S TOKYO HUB CONNECTS 11 ASIAN CITIES AND SIX IN THE US UAL CORP'S UNITED AIRLINES UNIT HAS THE LARGEST PRESENCE IN THE PACIFIC OF ANY US CARRIER THESE TWO AIRLINES AND OTHERS WHICH JUMPED INTO THE MARKET MORE RECENTLY ENJOY ACCESS TO INTRAASIAN ROUTES THANKS TO AIR TREATIES NEGOTIATED AFTER WORLD WAR II WHEN ASIA WAS UNDERDEVELOPED AND THE US RULED THE GLOBAL SKIES THE OAA INITIATIVE MARKS THE FIRST TIME ASIAN CARRIERS HAVE ALIGNED THEMSELVES ON A POLITICAL ISSUE THAT AFFECTS THE REGION NORTHWEST'S FINANCIAL PROBLEMS HAVE RAISED ADDITIONAL RED FLAGS WITHIN THE OAA WHICH INCLUDES SINGAPORE AIRLINES CATHAY PACIFIC AIRWAYS JAPAN AIRLINES AND QANTAS AIRWAYS ACCORDING TO A FOREIGN AIRLINE EXECUTIVE WHO HEARD THE CONVERSATION TWO OAA AIRLINE CHIEF EXECUTIVES RECENTLY DISCUSSED WAYS OF PERSUADING THEIR GOVERNMENTS TO DENY NORTHWEST ACCESS TO THEIR COUNTRIES SHOULD THE US CARRIER FILE FOR CHAPTER 11 FEDERAL BANKRUPTCYLAW PROTECTION OAA OFFICIALS DENIED ANY KNOWLEDGE OF THIS MR CHATRACHAI WHO ALSO IS PRESIDENT OF THAI AIRWAYS INTERNATIONAL SAID IN AN INTERVIEW THAT A POSSIBLE CHAPTER 11 FILING BY NORTHWEST IS AN ISSUE WE FEEL STRONGLY CAN AFFECT OUR OPERATIONS BUT HE ADDED THERE IS NO LEGAL WAY ASIAN COUNTRIES COULD ABROGATE NORTHWEST'S LANDING RIGHTS IN THE EVENT OF A BANKRUPTCYLAW FILING THIS SOUNDS COMMERCIALLY MOTIVATED RESPONDED RICHARD HIRST NORTHWEST'S GENERAL COUNSEL TO RAISE THE SPECTER OF BANKRUPTCY IS TO DRIVE BOOKINGS TO THEM WHILE NORTHWEST DOESN'T RULE OUT A CHAPTER 11 FILING I DON'T SEE ANY REASON WHY OUR OPERATING RIGHTS IN THE PACIFIC WOULD BE REMOTELY AFFECTED HE SAID ASIANS BELIEVE THEY CAN SEE THE EFFECTS FINANCIALLY PLAGUED AIRLINES ON THE VERGE OF BANKRUPTCY ARE BEING SUPPORTED UNDER CHAPTER 11 ALLOWING THEM TO OPERATE WITHOUT INTERFERENCE WITHOUT PAYING OFF CREDITORS SAID MR CHATRACHAI UNDER THE US CODE ALL THEY HAVE TO DO IS FIND CASH FLOW HE SAID THIS NATURALLY HAS A DETRIMENTAL EFFECT ON PRICING NORTHWEST WHOSE PARENT IS BASED IN ST PAUL MINN APPARENTLY HAS REACHED A CRITICAL POINT WITHOUT 886 MILLION IN PLANNED LABORCOST SAVINGS THE CARRIER'S LENDERS AREN'T EXPECTED TO RESCHEDULE ITS DEBT ITS BANKERS ARE VOTING THIS WEEK ON THE RESCHEDULING PACKAGE WHICH REMAINS CONTINGENT ON LABOR'S GIVEBACKS NORTHWEST'S UNIONS HAVE SAID THEY HAVE BEEN TOLD THE AIRLINE INTENDS TO FILE FOR BANKRUPTYLAW PROTECTION PERHAPS AS EARLY AS TUESDAY IF EMPLOYEES DON'T COOPERATE THE COMPANY DENIED HAVING A DEADLINE OR TARGET DATE AND SAID IT WANTS TO WORK OUT THE LABOR AND DEBT EQUATION VOLUNTARILY ITS DIRECTORS HAVE SCHEDULED A MEETING FRIDAY 9306230029 930623 EMPLOYERS BAND TOGETHER FOR BETTER ELDER CARE A FEW EMPLOYERS ARE TAKING AN ACTIVIST APPROACH TO HELP WORKERS WITH ELDER CARE SOME ARE BANDING TOGETHER SOMETIMES WITH PUBLIC AGENCIES TO PROVIDE SERVICES THAT NO ONE COMPANY WOULD WANT TO FINANCE ALONE OTHERS ARE SHORING UP COMMUNITY VOLUNTEER SERVICES STILL OTHERS ARE CREATING NEW WAYS TO SIZE UP ELDERCARE NEEDS FROM AFAR HERE ARE A FEW EXAMPLES THE PUBLICPRIVATE COLLABORATION THE PARTNERSHIP FOR ELDERCARE A CONSORTIUM OF AMERICAN EXPRESS CO JP MORGAN & CO PHILIP MORRIS COS AND OTHER COMPANIES USES THE RESOURCES OF THE NEW YORK CITY DEPARTMENT FOR THE AGING A PUBLICINFORMATION AND AGINGSUPPORT AGENCY AS A BASIS FOR PROVIDING EMPLOYEES REFERRAL COUNSELING SEMINARS AND OTHER ELDERCARE PROGRAMS CORPORATE FUNDING HELPS THE PARTNERSHIP TAILOR PROGRAMS TO EMPLOYEE NEEDS THE PARTNERSHIP HAS BECOME SELFSUPPORTING THROUGH FEES SINCE IT BEGAN IN 1988 BROADENING COMMUNITY SERVICES AMERICAN TELEPHONE & TELEGRAPH CO HAS GIVEN GRANTS TO COMMUNITY ORGANIZATIONS TO RECRUIT TRAIN AND MANAGE ELDERCARE VOLUNTEERS WHERE ITS EMPLOYEES LIVE AND WORK WITH AT&T WORKERS GETTING PRIORITY ACCESS TO THE PROGRAMS THE COMPANY IS PROVIDING 46100 TO A VOLUNTEER SUPPORT PROGRAM IN LAWRENCE MASS TO HELP ELDERLY RELATIVES OF AT&T EMPLOYEES AND OTHERS CONTINUE LIVING IN THEIR HOMES THE AMERICAN BUSINESS COLLABORATION A 109COMPANY CONSORTIUM OF WHICH AT&T IS A MEMBER HAS SIMILAR PROJECTS UNDER WAY BACKUP CARE TRAVELERS CORP IS PART OF A CONSORTIUM OF CONNECTICUT EMPLOYERS THAT TRAINS FAMILYCARE WORKERS AND SHARES WITH EMPLOYEES THE COST OF THREE DAYS' INHOME CARE FOR FAMILY EMERGENCIES IN ONE CASE A TRAVELERS EMPLOYEE AND HIS WIFE AND GROWN CHILDREN HAD USED UP ALL THEIR VACATION TIME TO HELP THE EMPLOYEE'S MOTHER CARE FOR THE EMPLOYEE'S FATHER A CANCER PATIENT TRAVELERS PAID PART OF THE COST OF HIRING A FAMILYCARE AIDE TO EASE THE STRAIN ON OTHER FAMILY MEMBERS MODIFIED CASE MANAGEMENT IN BOCA RATON FLA INTERNATIONAL BUSINESS MACHINES CORP AND MOTOROLA INC MEMBERS OF THE AMERICAN BUSINESS COLLABORATION HAVE FUNDED A NEW KIND OF CASEMANAGEMENT SERVICE THAT OFFERS JUST ONE VISIT TO AN ELDERLY RELATIVE AT HOME FOLLOWED BY A WRITTEN REPORT TO THE EMPLOYEE THE NEW CASEMANAGEMENT OPTION STOPS SHORT OF A POTENTIALLY MORE EXPENSIVE FULLSERVICE CASE MANAGER BUT OFFERS THE PROFESSIONAL ASSESSMENT NEEDED BY SO MANY LONGDISTANCE WORKING CAREGIVERS IN ALL CASES THESE EMPLOYERS ARE UNEARTHING HOT EMPLOYEE INTEREST IN ELDERCARE ISSUES AMERICAN EXPRESS SAW A 90 INCREASE IN FIRSTQUARTER CALLS TO ITS ELDERCARE COUNSELING SERVICES OVER A YEAR EARLIER BARBARA KATERSKY VICE PRESIDENT EMPLOYEE RELATIONS FOR AMERICAN EXPRESS SUMS IT UP PEOPLE ARE UNDER INCREASING STRESS AT WORK AND AT HOME AND THEY FEEL THEY DO NEED HELP SEE RELATED ARTICLE WORKPLACE FIRMS TRY HARDER BUT OFTEN FAIL TO HELP WORKERS COPE WITH ELDERCARE PROBLEMS WSJ JUNE 23 1993 9306230028 930623 WORLD MARKETS TOKYO SHARES REBOUND 17 AFTER JAPAN FREES FUNDS TO PROP UP THE POLITICALLY DIZZIED MARKET BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO NERVOUS JAPANESE REGULATORS RENEWED THEIR CAMPAIGN TO PROP UP TOKYO'S VOLATILE STOCK MARKET TUESDAY AFTER PRICES TOOK A STOMACHTURNING TUMBLE MONDAY IN RESPONSE TO THE NATION'S POLITICAL TURMOIL THE MARKET REBOUNDED AFTER BUREAUCRATS RELEASED TO JAPANESE TRUST BANKS AT LEAST 700 BILLION YEN 632 BILLION IN PUBLIC FUNDS EARMARKED FOR INVESTMENT IN STOCKS TRADERS AND TRUSTBANK OFFICIALS SAID THE TRUST BANKS APPEARED TO HAVE SPENT SOME OF THE NEW MONEY ON STOCKS BUT NOT ALL OF IT TRADERS SAID ON WEDNESDAY THE NIKKEI FELL 10842 POINTS TO CLOSE THE MORNING SESSION AT 1942988 TUESDAY'S ESTIMATED VOLUME WAS 3499 MILLION SHARES LITTLE CHANGED FROM 3512 MILLION SHARES ON MONDAY GAINERS OUTPACED LOSERS 787237 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH TUMBLED 5604 POINTS MONDAY RECOUPED 2410 OR 19 TO 155538 THE NIKKEI HAS FALLEN STEADILY OVER THE PAST SEVERAL WEEKS MOSTLY BECAUSE OF POLITICAL UNCERTAINTY IT PLUMMETED 592 POINTS MONDAY IN REACTION TO PASSAGE OF A NOCONFIDENCE VOTE AGAINST PRIME MINISTER KIICHI MIYAZAWA WHICH EFFECTIVELY BROUGHT DOWN THE GOVERNMENT ELECTIONS ARE SCHEDULED FOR JULY 18 AND MANY PEOPLE BELIEVE THE RULING PROBUSINESS LIBERAL DEMOCRATIC PARTY COULD LOSE POWER FOR THE FIRST TIME SINCE 1955 DESPITE NEW GOVERNMENT MONEY A FORCE THAT HAD BUOYED SHARE PRICES DURING SOME OF THE MARKET'S DARKEST HOURS LAST FALL AND WINTER CAUTION REMAINED THE WATCHWORD MANY TRADERS BELIEVED THE MARKET COULD DECLINE FURTHER BEFORE JAPAN'S POLITICAL MESS IS SORTED OUT THE MARKET IS GOING TO FIND STABILITY AROUND 19000 THAT'S STILL 2000 POINTS OFF THE HIGH SET JUNE 3 SAID YASUFUMI OHIGASHI DEPUTY GENERAL MANAGER OF YEN EQUITY TRADING AT NOMURA SECURITIES CO IF STOCKS DON'T HOLD THERE 18500 LOOKS STRONG NO UNEXPECTED POLITICAL DEVELOPMENTS EMERGED EITHER TO CHEER OR RATTLE THE STOCK MARKET TUESDAY THE NEW PUBLIC FUNDS APPEARED TO ENCOURAGE INVESTORS WHO BOUGHT MORE STOCKS DURING THE DAY GOVERNMENT BUREAUCRATS THOUGHT THAT IF THEY DIDN'T DO SOMETHING TO IMPROVE THE MOOD TODAY TUESDAY THERE WAS NO POINT SAID AN OFFICIAL AT A JAPANESE TRUST BANK THAT ADMINISTERS GOVERNMENT FUNDS ANALYSTS ESTIMATED THAT THE LATEST RELEASE OF GOVERNMENT MONEY LEFT THE BUREAUCRATS WITH AT LEAST ONE TRILLION YEN TO SPEND ON STOCKS IN ADDITION TO MONEY ALREADY RELEASED TO THE ADMINISTERING BANKS BUT NOT YET INVESTED BARRING A MAJOR STOCK SELLOFF THAT MAY BE ENOUGH CASH TO KEEP THE MARKET STEADY ANALYSTS SAID THE SHARP DROP IN STOCK PRICES OVER SEVERAL PRECEDING SESSIONS ALSO MAY HAVE MADE THE MARKET RIPE FOR A RECOVERY EVEN IF THE GOVERNMENT HADN'T INJECTED NEW FUNDS INTO STOCKS SAID JOHN ALKIRE EXECUTIVE DIRECTOR OF STOCK SALES AT MORGAN STANLEY JAPAN LTD IT'S LIKE A BUNGEE CORD WHEN IT STRETCHES FAR ENOUGH IT BOUNCES UP HE SAID THE SHARES OF JAPANESE ELECTRONICS EXPORTERS GAINED BECAUSE OF THE CONTINUED WEAKENING OF THE YEN OTHER MARKET ACTIVITY LONDON SHARE PRICES ROSE SLIGHTLY STILL BUOYED BY POSITIVE SPILLOVER FROM THE PREVIOUS DAY'S EUROPEAN LENDINGRATE CUTS FRANKFURT STOCKS GAINED AS THE DOLLAR STRENGTHENED AND INVESTORS HELD OUT HOPES FOR GERMAN RATE REDUCTIONS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10364 UP 034 REFLECTING INCREASES IN ASIA PACIFIC MARKETS AND A DROP IN THE AMERICAS AND EUROPE TRUCKING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10964 UP 283 OR 27 WITH NIPPON EXPRESS OF JAPAN POSTING A 61 GAIN IN ITS LOCAL CURRENCY POLLUTION STOCKS TRAILED AT 8272 DOWN 333 OR 39 WITH WMX TECHNOLOGIES OF THE US SLIDING 67 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 42 POINTS TO 29076 THE FT 30STOCK INDEX ADDED 26 POINTS TO 22770 VOLUME WAS 5881 MILLION SHARES COMPARED WITH 5704 MILLION SHARES A DAY EARLIER THE 100STOCK AVERAGE OPENED WITH STRENGTH CLIMBING QUICKLY TO THE INTRADAY HIGH OF 29172 PROMPTED BY MONDAY'S REDUCTIONS IN INTEREST RATES IN SEVERAL EUROPEAN COUNTRIES HOPES PERSISTED FOR FURTHER REDUCTIONS WITH THE POUND'S CURRENT STRENGTH INVESTORS BELIEVED BRITAIN CAN LOWER ITS RATES TO KEEP ITS CURRENCY AT LEVELS TO HELP MAINTAIN CORPORATE COMPETITIVENESS REDUCE BORROWING COSTS AND INCREASE STOCKS' APPEAL IN FRANKFURT THE DAX 30STOCK INDEX ROSE 826 POINTS TO 169808 AFTER MEETING RESISTANCE TO STAYING ABOVE THE 1700 LEVEL THE DOLLAR'S STRENGTH WAS VIEWED AS AIDING GERMAN EXPORTS TO US MARKETS AND SPECULATION INTENSIFIED THAT THE GERMAN BUNDESBANK THE CENTRAL BANK WILL LOWER KEY INTEREST RATES ON JULY 1 IN PARIS STOCKS EXTENDED THEIR WINNING STREAK TO THREE SESSIONS IN A ROW ON ENTHUSIASM FROM THE PREVIOUS DAY'S RATE CUTS BY THE BANK OF FRANCE AND ON OPTIMISM BECAUSE OF A POSITIVE RESPONSE TO FRENCH PRIVATIZATION DEVELOPMENTS AMSTERDAM EQUITIES RALLIED FOR A SECOND DAY IN A ROW LIFTED BY INVESTORS' ENTHUSIASM ABOUT A FIRMING DOLLAR AND THE PREVIOUS DAY'S REDUCED RATES MILAN SHARES ENDED LITTLE CHANGED AFTER A ROLLERCOASTER SESSION IN WHICH A SLOW START GAVE WAY TO STRONG DEMAND THAT IN TURN WAS DAMPED BY TECHNICAL SELLING AUTO AND TELECOMMUNICATIONS STOCKS LED THE GAINERS IN MADRID STOCKS ADVANCED ON A BUYING WAVE FUELED BY EXPECTATIONS OF AN IMMINENT CUT IN SPANISH INTEREST RATES ZURICH STOCKS ENDED HIGHER BUT DOWN FROM HIGHS ON PROFITTAKING LATE IN THE SESSION SYDNEY SHARE PRICES FELL AMID SOME PROFITTAKING IN LACKLUSTER TRADING AHEAD OF THE FISCAL YEAR END NEXT WEDNESDAY IN HONG KONG BULLISH RESULTS AT A LAND AUCTION FUELED A REBOUND FOR STOCKS THOUGH SOME INVESTORS WERE CAUTIOUS AHEAD OF CONCLUSIONS ABOUT SINOBRITISH RELATIONS IN NEGOTIATIONS UNDER WAY SINGAPORE PRICES SANK UNDER SELLING OF BLUE CHIPS AFTER DUMPING OF FOREIGNHELD SHARES OF BANKS AND SHIPYARDS INTENSIFIED SHIPYARDS WERE SOLD ON SPECULATION ABOUT POOR EARNINGS EXPECTATIONS SEOUL SHARE PRICES ROSE AS MARKET SENTIMENT WAS BOOSTED BY AN INCREASE IN INVESTOR DEPOSITS WITH BROKERAGE FIRMS AND BY ANTICIPATED EARNINGS IMPROVEMENTS FOR THE FIRST HALF AMONG CORPORATE DEVELOPMENTS IN LONDON ZENECA GROUP RALLIED 8 PENCE OR 13 TO 626 PENCE 931 THE PHARMACEUTICAL COMPANY WHICH WAS RECENTLY SPLIT FROM IMPERIAL CHEMICAL INDUSTRIES SAID PREEMPTIVE RIGHTS TO 85 OF ITS 13 BILLION 193 BILLION ISSUE OF NEW SHARES AT A PRICE OF 600 PENCE WERE TAKEN UP BY EXISTING STOCKHOLDERS THE REMAINING SHARES WERE BEING PLACED WITH INSTITUTIONAL INVESTORS PROCEEDS WILL PAY DEBT OWED TO ICI WHICH LOST 95 OR 14 TO 6915 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 9306230027 930623 WHAT'S NEWS WORLDWIDE SOME BOSNIAN LEADERS AGREED TO DISCUSS A SERBCROAT PARTITION PLAN SEVEN TOP OFFICIALS OF BOSNIA'S MUSLIMLED GOVERNMENT SAID THEY WOULD ATTEND TALKS TODAY ON THE PROPOSAL TO DIVIDE THE COUNTRY INTO THREE ETHNIC ZONES AN IDEA THE MUSLIMS DISLIKE BUT MAY HAVE TO ACCEPT NOTICEABLY ABSENT FROM THE GENEVA MEETING WILL BE BOSNIA'S PRESIDENT A MUSLIM WHO APPARENTLY DECIDED TO BOYCOTT THE SESSION INTERNATIONAL MEDIATORS HAVE INVITED SERBIA'S MILOSEVIC CROATIA'S TUDJMAN AND REPRESENTATIVES OF BOSNIA'S WARRING FACTIONS YUGOSLAV MEDIA SAID BOSNIA'S SERBS AND CROATS ALREADY ADOPTED BOUNDARIES FOR THE THREE ZONES WITH SERBS GETTING HALF THE COUNTRY AND CROATS 30 MANAGERS OF THE SUPERCOLLIDER ALLOWED AT LEAST 216 MILLION IN UNNECESSARY OR EXCESSIVE SUBCONTRACTOR EXPENSES REPRESENTING 40 OF THE REIMBURSEMENTS THE ENERGY DEPARTMENT'S INSPECTOR GENERAL CONTENDS THE DRAFT REPORT WAS MADE PUBLIC TWO DAYS BEFORE A HOUSE VOTE ON THE ATOM SMASHER SOME HOSPITALS OFTEN CHARGE PATIENTS OR INSURERS AS MUCH AS THREE TIMES WHAT IT COSTS TO ACQUIRE ORGANS USED IN TRANSPLANT SURGERY A STUDY SAID THE PROCUREMENT CHARGES ARE BILLED TO PATIENTS IN ADDITION TO OTHER FEES A HOUSE PANEL ADOPTED A REVAMPED SPACE BUDGET THAT FULLY FUNDS THE CLINTON ADMINISTRATION'S REDESIGNED SPACE STATION BUT DEMANDS LARGE CUTS FROM OTHER NASA PROJECTS INCLUDING THE SHUTTLE PROGRAM THE US STOOD FIRM ON IMPLEMENTING INTERNATIONAL SANCTIONS AGAINST HAITI EFFECTIVE TODAY DESPITE AN OFFER BY THE COUNTRY'S ARMY CHIEF TO MEET OUSTED PRESIDENT ARISTIDE THOUGH THE EXILED PRESIDENT AGREED TO THE TALKS DIPLOMATS SAID THE UN OIL AND ARMS EMBARGO WOULD PROCEED JAPAN'S LIBERAL DEMOCRATIC PARTY LOST 44 MORE PARLIAMENT MEMBERS INCLUDING SEVERAL FORMER CABINET MINISTERS THE DEFECTORS FROM THE RULING PARTY LED BY EXFINANCE MINISTER HATA HOPED TO FORM A CENTRIST OPPOSITION GROUP ON MONDAY 10 OTHER LDP REBELS FORMED A NEW POLITICAL GROUP A FUGITIVE SOMALI CLAN LEADER VOWED THAT HIS SUPPORTERS WOULD DEFEND HIM AGAINST ARREST BY UN AUTHORITIES OVER THE SLAYING OF 24 PAKISTANI PEACEKEEPERS AIDID TOLD A REPORTER THAT HE WOULD REMAIN IN MOGADISHU A FEDERAL APPEALS COURT RULED THAT PRESIDENT CLINTON'S HEALTHCARE TASK FORCE WASN'T LEGALLY REQUIRED TO HOLD PUBLIC HEARINGS THE COURT REVERSED A JUDGE'S MARCH RULING THAT SAID HILLARY RODHAM CLINTON WAS A PRIVATE CITIZEN AND THAT THE TASK FORCE WHICH SHE HEADED HAD TO HOLD PUBLIC MEETINGS THE TASK FORCE WAS DISBANDED LAST MONTH JORDAN'S KING HUSSEIN DECLARED THAT THE IRAQI PEOPLE SHOULD STRIVE FOR DEMOCRATIC RULE THROUGH WHATEVER MEANS COULD ACHIEVE THAT END THE MONARCH SAID THAT THE BAGHDAD GOVERNMENT HAS MADE ENOUGH ERRORS AND MISTAKES YELTSIN'S DRAFT CONSTITUTION WILL CONTAIN A PROVISION THAT PERMITS REGIONS TO OPT OUT OF THE RUSSIAN FEDERATION TREATY BUT STILL BINDS THEM TO MOSCOW A SENIOR AIDE TO THE RUSSIAN PRESIDENT DISCLOSED THE US URGED NIGERIAN AUTHORITIES TO RELEASE THE RESULTS OF THE JUNE 12 PRESIDENTIAL ELECTIONS THE STATE DEPARTMENT SAID FURTHER DELAY COULD JEOPARDIZE THE TRANSITION FROM MILITARY TO CIVILIAN RULE ON AUG 27 MIDEAST PEACE NEGOTIATORS DISPUTED THE EFFECTIVENESS OF THE US IN THE PROCESS WITH ISRAEL APPLAUDING SERIOUS INVOLVEMENT BY WASHINGTON AND SYRIA SAYING THE AMERICANS HAD FAILED TO ACCELERATE THE TALKS A BLACK MILITANT GROUP REFUSED TO SUSPEND ITS LOWLEVEL GUERRILLA WAR IN SOUTH AFRICA BUT THE PAN AFRICANIST CONGRESS SAID IT WOULD HOLD A NEW MEETING WITH THE GOVERNMENT TO DISCUSS THE ISSUE NUCLEAR INSPECTORS HAVE FOUND EVIDENCE OF DISTURBING PROBLEMS WITH EASTERN EUROPE'S NEWER AND SUPPOSEDLY SAFER REACTORS ACCORDING TO A REPORT THE LATERGENERATION REACTORS ARE EXHIBITING FLAWS IN THEIR STEAM GENERATORS THAT CAN LEAD TO LEAKAGE OF RADIOACTIVE MATERIAL DIED PAT NIXON 81 FORMER FIRST LADY WHO TOOK A LOWPROFILE STALWART PUBLIC ROLE EVEN AS HER HUSBAND RESIGNED IN DISGRACE IN 1974 IN PARK RIDGE NJ OF LUNG CANCER 9306230026 930623 WHO'S NEWS PHARMACY MANAGEMENT SERVICES INC PHARMACY MANAGEMENT SERVICES INC TAMPA FLA BERTRAM T MARTIN JR 43 YEARS OLD WAS NAMED PRESIDENT OF THIS HEALTH COSTCONTAINMENT CONCERN HE SUCCEEDS CECIL S HARRELL 57 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE MR MARTIN A DIRECTOR OF THE COMPANY HAS BEEN A PARTNER IN TUNSTALL CONSULTING INC AND A CONSULTANT FOR PHARMACY MANAGEMENT SERVICES HE ALSO WAS NAMED CHIEF OPERATING OFFICER A NEW TITLE 9306230025 930623 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 ANHEUSERBUSCH COS 200 MILLION OF DEBENTURES DUE JULY 1 2023 PRICED AS 7375S AT 99188 TO YIELD 7443 ACCORDING TO MCM CORPORATEWATCH THE DEBENTURES NONCALLABLE FOR 10 YEARS ARE PRICED AT A SPREAD OF 67 BASIS POINTS ABOVE THE COMPARABLE TREASURY RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DILLON READ & CO EQUIFAX INC 200 MILLION OF SENIOR NOTES DUE JUNE 15 2003 PRICED AS 65S AT 9949 TO YIELD 657 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES ARE PRICED AT A SPREAD OF 67 BASIS POINTS ABOVE TREASURYS RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP INTERNATIONAL LEASE FINANCE CORP 100 MILLION OF NOTES DUE JULY 1 1998 PRICED AS 575S AT 9975 TO YIELD 5808 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES ARE PRICED AT A SPREAD OF 61 BASIS POINTS ABOVE TREASURYS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO INTERNATIONAL LEASE FINANCE IS A UNIT OF AMERICAN INTERNATIONAL GROUP INC AQUARION CO 400000 COMMON SHARES AT 25875 APIECE THROUGH SMITH BARNEY HARRIS UPHAM & CO FUNCO INC 1350000 SHARES AT 11 APIECE THROUGH MANAGING UNDERWRITERS WILLIAM BLAIR & CO AND MILLER JOHNSON & KUEHN INC PRIMADONNA RESORTS INC INITIAL OFFERING OF 58 MILLION COMMON SHARES AT 18 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS US LONG DISTANCE CORP TWO MILLION COMMON SHARES AT 12125 APIECE THROUGH COMANAGERS CHICAGO CORP AND STEPHENS INC DALLAS 1856 MILLION SERIES 1993 GENERALOBLIGATION REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 24 IN 1994 TO 545 IN 2010 AND 2011 MOODY'S IS EXPECTED TO RATE THE ISSUE DOUBLEA1 AND S&P IS EXPECTED TO ASSIGN A TRIPLEA RATING LOS ANGELES COUNTY 15 BILLION 199394 FIXEDRATE TAX AND REVENUE ANTICIPATION NOTES PRICED BY A LEHMAN BROTHERS GROUP THE NOTES ARE DUE JUNE 30 1994 THEY HAVE A 3 COUPON AND ARE PRICED AT 100437 TO YIELD 255 AT MATURITY THE SERIES A NOTES HAVE BEEN RATED MIG1 BY MOODY'S SP1PLUS BY S&P AND F1PLUS BY FITCH INVESTORS SERVICE INC THE COUNTY'S 350 MILLION SERIES B FLEXIBLERATE NOTES WILL BE PRICED NEXT WEEK BY FIRST BOSTON CORP THAT FIRM WILL ALSO BE RESPONSIBLE FOR THE REMARKETING OF THE SECURITIES THE SERIES B NOTES HAVE A VMIG1 RATING FROM MOODY'S A SINGLEA1PLUS RATING FROM S&P AND AN F1PLUS RATING FROM FITCH NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY 375 MILLION BOND ANTICIPATION NOTES PRICED BY A WR LAZARD LAIDLAW & MEAD GROUP THE FISCAL 1993 SERIES A NOTES ARE DUE APRIL 15 1994 THEY HAVE A 275 COUPON AND ARE PRICED TO YIELD 24 THE ISSUE WHICH IS FOR THE CITY'S WATER AND SEWER SYSTEM HAS BEEN RATED MIG1 BY MOODY'S AND SP1 BY S&P PORT AUTHORITY OF NEW YORK AND NEW JERSEY 1499 MILLION CONSOLIDATED BONDS BROUGHT TO THE MARKET BY A PRUDENTIAL SECURITIES INC GROUP YIELDS FOR THE NONCALLABLE BONDS RANGE FROM 24 IN 1994 TO 53 IN 2011 AND 2012 MOODY'S HAS RATED THE ISSUE SINGLEA1 AND S&P HAS ASSIGNED A DOUBLEAMINUS RATING RHODE ISLAND DEPOSITORS ECONOMIC PROTECTION CORP 2068 MILLION 1993 SERIES A SPECIAL OBLIGATION REFUNDING BONDS PRICED BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP YIELDS RANGE FROM 5 IN 1999 TO 6 IN 2021 BONDS DUE IN 2014 2019 AND 2020 ARE INSURED BY FINANCIAL SECURITY ASSURANCE AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE OTHER SECURITIES HAVE A BAA1 RATING FROM MOODY'S AND A SINGLEAMINUS RATING FROM S&P RIVERSIDE COUNTY CALIF 100 MILLION FIXEDRATE TAX AND REVENUE ANTICIPATION NOTES PRICED BY A FIRST BOSTON CORP GROUP THE NOTES ARE DUE JUNE 30 1994 THEY HAVE A 3 COUPON AND ARE PRICED TO YIELD 245 MOODY'S HAS RATED THE ISSUE MIG1 AND S&P HAS ASSIGNED AN SP1PLUS RATING SEATTLE WASH 4526 MILLION 1993 MUNICIPAL LIGHT AND POWER BONDS PRICED BY A LEHMAN BROTHERS GROUP YIELDS FOR THE REVENUE AND REFUNDING BONDS RANGE FROM 255 IN 1994 TO 57 IN 2018 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA FEDERAL HOME LOAN MORTGAGE CORP 1 BILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY NOMURA SECURITIES INTERNATIONAL INC THE OFFERING SERIES G016 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 299 YEARS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1553 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 147 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY FIRST BOSTON CORP THE OFFERING SERIES TRUST 1993129 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 72 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 148 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE OFFERING SERIES 1993127 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 NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SMITH BARNEY HARRIS UPHAM & CO THE OFFERING SERIES 1993128 IS BACKED BY STRIPPED MORTGAGEBACKED SECURITIES NO 232 WHICH IS BACKED IN TURN BY THE AGENCY'S 30YEAR 9 MORTGAGE SECURITIES AEROSPATIALE FRANCE 15 BILLION FRENCH FRANCS OF 7 EUROBONDS DUE JULY 15 2003 REOFFERED AT 9861 VIA CREDIT LYONNAIS YIELD AT REOFFER PRICE 72 ANNUAL SPREAD 45 BASIS POINTS ABOVE FRENCH TREASURY'S 675 NOTE DUE 2003 FEES 035 POINT EUROPEAN INVESTMENT BANK LUXEMBOURG 200 MILLION SWISS FRANCS OF 45 NOTES DUE JULY 29 1997 VIA SWISS BANK CORP AT ISSUE PRICE 102 IN A PRIVATE PLACEMENT FEES STANDARD GENERAL ELECTRIC CAPITAL CANADA INC US PARENT 200 MILLION CANADIAN DOLLARS OF 7 EUROBONDS DUE JULY 20 1999 AT ISSUE PRICE 100725 VIA SWISS BANK CORP REOFFERED AT 99125 TO YIELD 718 ANNUAL SPREAD 375 BASIS POINTS ABOVE 65 CANADIAN GOVERNMENT NOTE DUE SEPTEMBER 1998 FEES 1875 POINTS KEIYO CO JAPAN 100 MILLION MARKS OF 2375 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE JULY 8 1997 AT ISSUE PRICE PAR VIA YAMAICHI BANK DEUTSCHLAND GMBH GUARANTOR MITSUBISHI BANK LTD FEES 225 POINTS REPUBLIC OF AUSTRIA SOVEREIGN ONE BILLION SWISS FRANCS OF 45 NOTES DUE FEB 12 2000 VIA SWISS BANK CORP AT ISSUE PRICE 102125 REOPENING CLAUSE FEES STANDARD TOYOTA FINANCE AUSTRALIA LTD JAPANESE PARENT 100 MILLION AUSTRALIAN DOLLARS OF 625 EUROBONDS DUE AUG 2 1996 AT ISSUE PRICE 101104 VIA MERRILL LYNCH INTERNATIONAL LTD YIELD 64 ANNUAL AT COMANAGING BANKS' BREAKEVEN PRICE SPREAD 16 BASIS POINTS ABOVE COMPARABLE AUSTRALIAN GOVERNMENT NOTE GUARANTOR TOYOTA MOTOR FINANCE NETHERLANDS BV FEES 15 POINTS VANCOUVER CITY SAVINGS CREDIT UNION CANADA 100 MILLION CANADIAN DOLLARS OF 7 ASSETBACKED EUROBONDS DUE AUG 4 1998 AT AN ISSUE PRICE OF 10025 VIA HAMBROS BANK LTD REOFFERED AT 98675 TO YIELD 733 ANNUAL SPREAD 51 BASIS POINTS ABOVE 65 CANADIAN GOVERNMENT NOTE DUE 1998 SECURED ON NATIONAL HOUSING ASSOCIATION QUALIFIED MORTGAGES AND OTHER FEDERAL GOVERNMENT SECURITIES FEES 1875 POINTS 9306230024 930623 INSURANCE REGULATORS MOVE ON COVERAGE FOR LONGTERM CARE CHICAGO INSURANCE REGULATORS AGREED TO FORCE INSURERS TO PAY SOME BENEFITS TO PEOPLE WHO LET THEIR LONGTERM CARE INSURANCE POLICIES LAPSE LONGTERM CARE INSURANCE WHICH PAYS FOR NURSING HOME AND HOME HEALTH CARE FOR THE ELDERLY HAS BEEN CRITICIZED BY CONSUMER GROUPS WHO ARGUE THAT AS MANY AS 80 OF ALL BUYERS FIND THE PAYMENTS TOO COSTLY AND ALLOW THE POLICIES TO LAPSE BEFORE THEY RECEIVE ANY BENEFITS POLICYHOLDERS PAY NEARLY 3 BILLION A YEAR IN PREMIUMS FOR LONGTERM CARE INSURANCE WHICH IS ONE OF THE FASTEST GROWING SEGMENTS OF THE HEALTH INSURANCE MARKET THE ACTION BY THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS GATHERED HERE FOR THEIR ANNUAL SUMMER MEETING REQUIRES INSURERS TO PAY AT LEAST SOME BENEFITS TO POLICYHOLDERS WHO HAVE LET THEIR POLICIES LAPSE AFTER YEARS OF STEADY PAYMENTS THIS ENSURES THAT LONGTERM CARE CONSUMERS WILL RECEIVE SOME LEVEL OF PROTECTION SAID FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER WHO HEADED THE NAIC COMMITTEE IN CHARGE OF THE ISSUE IT'S A GOOD COMMON SENSE MOVE DETAILS OF THE TYPES OF BENEFITS AND WHO QUALIFIES ARE BEING WORKED OUT BY A NAIC TASK FORCE BENEFITS COULD TAKE THE FORM OF FULL PAYMENT FOR CARE FOR A SHORTER PERIOD THAN THE ORIGINAL CONTRACT TERM OR PARTIAL PAYMENT FOR THE FULL CONTRACT TERM CONSUMER GROUPS HAILED THE ACTION AS A VICTORY BUT THE INSURANCE INDUSTRY SAID SOCALLED NONFORFEITURE BENEFITS HURT CONSUMERS BY FORCING THEM TO PAY AN ESTIMATED 8 TO 30 MORE FOR COVERAGE INSURERS ARGUED THAT CONSUMERS BE GIVEN THE OPTION TO BUY A POLICY WITH NONFORFEITURE BENEFITS OR A LESS EXPENSIVE ONE THAT LACKS THE BENEFITS 9306230023 930623 US SEEKS PERMITS FOR TRANSPORTATION OF SOME MATERIALS WASHINGTON THE TRANSPORTATION DEPARTMENT IS SEEKING TO REQUIRE CARRIERS OF HIGHRISK HAZARDOUS MATERIALS TO OBTAIN FEDERAL SAFETY PERMITS CURRENTLY SUCH CARRIERS NEED ONLY STATE LICENSES BUT THE DEPARTMENT RESPONDING TO INCREASING CONGRESSIONAL CONCERN ABOUT ACCIDENTS INVOLVING SUCH MATERIALS HAS PROPOSED A RULE THAT WOULD REQUIRE MOTOR CARRIERS TO GET PERMITS FROM THE FEDERAL HIGHWAY ADMINISTRATION CARRIERS WOULD BE REQUIRED TO GET A SATISFACTORY RATING BEFORE THEY COULD RECEIVE THE FEDERAL PERMIT CARRIERS THAT RECEIVE A LESS THAN SATISFACTORY RATING WOULDN'T BE ALLOWED TO TRANSPORT HIGHRISK HAZARDOUS MATERIALS IN A STATEMENT ANNOUNCING THE PROPOSAL TRANSPORTATION SECRETARY FEDERICO PENA SAID THESE RULES WHICH WOULD AFFECT MORE THAN 8000 INTERSTATE AND POSSIBLY MANY MORE INTRASTATE CARRIERS WILL BE SIGNIFICANT IN REDUCING THE ACCIDENT INVOLVEMENT OF MOTOR CARRIERS TRANSPORTING HIGHRISK HAZARDOUS MATERIALS THE PERMIT PROGRAM WOULD APPLY TO FOUR GENERAL CLASSES OF HAZARDOUS MATERIALS CLASS A AND B EXPLOSIVES LIQUEFIED NATURAL GAS POISON GAS AND HIGHLY RADIOACTIVE MATERIALS CARRIERS OF 1000 POUNDS OR MORE OF THE MATERIALS WOULD BE REQUIRED TO OBTAIN THE FEDERAL PERMIT BY NOV 16 WHILE CARRIERS OF SMALLER AMOUNTS WOULD NEED TO ACHIEVE A SATISFACTORY RATING WITHIN THE NEXT TWO YEARS PAUL BOMGARDNER HAZARDOUS MATERIALS SPECIALIST AT AMERICAN TRUCKING ASSOCIATIONS AN INDUSTRY GROUP ENDORSED THE PROPOSAL WE'RE HOPING IT WILL BE AN EASY WAY TO PROVE TO A CUSTOMER THAT CARRIERS HAVE A SAFETY PERMIT WITH THE FEDERAL GOVERNMENT HE ADDED THAT THE PLAN WOULD ALSO ALLOW INSURANCE STATE AND GOVERNMENT OFFICALS TO CHECK A CARRIER'S RATING THE DEPARTMENT WILL ACCEPT COMMENTS UNTIL AUG 17 9306230022 930623 CONTINENTAL MEDICAL CUTS EXPANSION PLANS STOCK PLUMMETS 29 MECHANICSBURG PA CONTINENTAL MEDICAL SYSTEMS INC CITING UNCERTAINTY IN HEALTHCARE POLICY SAID IT IS SHARPLY CUTTING BACK EXPANSION PLANS THE NEWS SENT THE COMPANY'S STOCK TUMBLING 3375 OR 29 TO 8375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE PROVIDER OF REHABILITATIVE SERVICES AT HOSPITALS AND OUTPATIENT LOCATIONS SAID IT EXPECTS TO TAKE A ONETIME CHARGE OF ABOUT 195 MILLION INCLUDING 145 MILLION FOR ABANDONMENT OR WRITEDOWN OF ABOUT 30 PROJECTS UNDER DEVELOPMENT THE COMPANY SAID EARNINGS FOR THE FISCAL FOURTH QUARTER ENDED JUNE 30 ARE EXPECTED TO BE FIVE TO SEVEN CENTS A SHARE BELOW ANALYSTS' PREDICTIONS OF 25 CENTS A SHARE EXCLUDING THE PRETAX CHARGE IN THE YEAREARLIER FOURTH QUARTER CONTINENTAL MEDICAL EARNED 77 MILLION OR 21 CENTS A SHARE BEFORE MERGER EXPENSES THE COMPANY WHICH OPERATES 34 REHABILITATIVE HOSPITALS SAID IT PLANS TO SIGNIFICANTLY REDUCE THE NUMBER OF NEW HOSPITAL PROJECTS AND PURSUE LESS CAPITALINTENSIVE GROWTH IN ADDITION IT SAID ITS TEMPORARY PHYSICIANSTAFFING BUSINESS AND A SMALL NUMBER OF HOSPITALS ARE SHOWING RESULTS BELOW PREVIOUS EXPECTATIONS TEMPORARY STAFFING ACCOUNTS FOR ABOUT 100 MILLION A YEAR IN REVENUE FOR CONTINENTAL MEDICAL SAID ALEX BROWN & CO ANALYST NEAL BRADSHER WHO LOWERED HIS INVESTMENT RATING ON THE STOCK CONTINENTAL MEDICAL ALSO SAID IT IS LAYING OFF 10 OF ITS EMPLOYEES AT ITS 34 HOSPITALS THE COMPANY SAID SOFTNESS IN THE TEMPORARY STAFFING BUSINESS APPEARS TO REFLECT OUR CUSTOMERS' UNCERTAINTY REGARDING HEALTHCARE REFORM THE COMPANY ALSO PROVIDES OUTPATIENT REHABILITATION SERVICES AT MORE THAN 120 LOCATIONS AND MANAGES 12 INPATIENT REHABILITATION UNITS FOR GENERAL ACUTECARE HOSPITALS 9306230021 930623 LEISURE & ARTS THEATER A GEM FROM GOLDEN YEARS BY EDWIN WILSON NEW YORK THIRTY YEARS AGO AT THIS TIME THE 19621963 THEATER SEASON HAD JUST ENDED DURING THAT YEAR A TOTAL OF 54 PRODUCTIONS OPENED ON BROADWAY COMPARED WITH JUST 33 DURING THE SEASON JUST CONCLUDED IN JUNE 1963 THE FLOURISHING BROADWAY THEATER INCLUDED MUSICALS OF ALL KINDS A FUNNY THING HAPPENED ON THE WAY TO THE FORUM OLIVER HOW TO SUCCEED IN BUSINESS WITHOUT REALLY TRYING NEW MUSICALS BY RICHARD RODGERS AND IRVING BERLIN IT IS THIS VARIETY THAT HISTORIANS OFTEN OVERLOOK WHEN THEY POINT TO THE GOLDEN DAYS OF THE AMERICAN MUSICAL THERE WERE BLOCKBUSTER MUSICALS AND CHAMBER PIECES ALONG WITH REVUES REMEMBER SUCH GEMS AS NEW FACES OF '52 BOTH THE OUTPUT AND THE DIVERSITY WERE KEY IN A MILIEU AS HOSPITABLE AS THAT WRITERS COULD TURN IN SEVERAL DIRECTIONS AND HONE THEIR TALENTS WITH VARIOUS KINDS OF MATERIAL A PERFECT EXAMPLE IS THE TEAM OF COMPOSER JERRY BOCK AND LYRICIST SHELDON HARNICK IN 1959 THEY HAD WRITTEN THE LARGESCALE MUSICAL FIORELLO AND IN 1964 THEY WOULD CREATE FIDDLER ON THE ROOF BUT IN THE SPRING OF 1963 THEY TURNED THEIR ATTENTION TO A MUCH MORE MODEST WORK ALMOST A CHAMBER PIECE CALLED SHE LOVES ME IT HAD NO SINGING OR DANCING CHORUS AND NO STARRING ROLE WHAT IT DID HAVE WAS A NEARPERFECT SCORE FOR A MODEST UNASSUMING BUT ALTOGETHER CAPTIVATING MUSICAL BASED ON A PLAY PARFUMERIE BY MIKLOS LASZLO WHICH IN TURN WAS MADE INTO TWO MOVIES THE SHOP AROUND THE CORNER AND IN THE GOOD OLD SUMMER TIME THE SCENE OF SHE LOVES ME IS A PERFUME AND COSMETICS SHOP IN BUDAPEST IN THE 1930S A SHY CLERK GEORG BOYD GAINES HAS BEEN WRITING LOVE LETTERS TO A WOMAN HE'S NEVER MET AMALIA JUDY KUHN WHO HAPPENS TO GET A JOB IN THE SAME SHOP NOT KNOWING THAT EACH IS THE LOVESICK PEN PAL OF THE OTHER THEY BICKER CONSTANTLY AT WORK MEANWHILE THE OWNER OF THE SHOP MARACZEK LOUIS ZORICH THINKS GEORG IS HAVING AN ADULTEROUS AFFAIR WITH HIS WIFE BUT IN FACT THE CULPRIT IS STEVEN HOWARD MCGILLIN WHO ALSO MAKES ADVANCES TO ANOTHER EMPLOYEE ILONA SALLY MAYES THE AIR IS AS FULL OF ROMANCE AS OF PERFUME AND TO CARRY US THROUGH THIS ROUNDELAY OF LOVE MESSRS BOCK AND HARNICK HAVE PROVIDED A SUPERB EXAMPLE OF MUSIC WRITTEN NOT FOR ITS OWN SAKE BUT TO EXPLAIN CHARACTER AND ADVANCE THE PLOT AS WELL AS FURNISH MARVELOUS FUN INTO THE BARGAIN THE CHARM AND ENCHANTMENT OF SHE LOVES ME COULD EASILY SEEM TIMEWORN OR TURN COY HOWEVER WERE THEY NOT BROUGHT TO LIFE WITH INVENTIVENESS ENERGY AND INSIGHT FORTUNATELY THIS IS WHAT DIRECTOR SCOTT ELLIS HAS DONE PREVIOUSLY MR ELLIS HAS PROVED HIMSELF WITH PRODUCTIONS OFFBROADWAY AND AT THE NEW YORK CITY OPERA BUT THIS IS HIS BROADWAY DEBUT AND HE HAS DONE JUST ABOUT EVERYTHING RIGHT FIRST OF ALL HE HAS CHOSEN A FIRSTRATE CAST EACH PERSON EMBODIES JUST THE RIGHT QUALITIES OF SHYNESS BRAGGADOCIO OR WHATEVER BUT EACH ONE IS ALSO AN EXCELLENT SINGER THE RESULT IS THAT SONG AFTER SONG IS DELIVERED WITH MAXIMUM STYLE AND ECLAT TOWARD THE END OF ACT ONE FOR EXAMPLE THERE IS A HILARIOUS NUMBER THE SCENE IS A CAFE WHERE AMALIA IS AWAITING A RENDEZVOUS WITH HER UNSEEN CORRESPONDENT THE CAFE TURNS OUT TO BE ONE OF THOSE DECADENT '30S RESTAURANTS WHERE ASSIGNATIONS ABOUND THE HEAD WAITER JONATHAN FREEMAN AN OILY CREATURE REASSURES HIS CUSTOMERS THAT HE WILL PROVIDE A ROMANTIC ATMOSPHERE BUT HE IS CONSTANTLY THWARTED BY THE NOISY DROPPING OF TRAYS AND THE BUMBLING PRATFALLS OF HIS BUSBOY JOEY MCKNEELY AMID THE CLATTER AND THE KALEIDOSCOPIC MOVEMENT OF DANCING COUPLES MR ELLIS WITH THE HELP OF CHOREOGRAPHER ROB MARSHALL HAS CREATED A MUSICAL WHIRLIGIG OF NONSTOP FUN IN ACT TWO ONE REMARKABLE MUSICAL NUMBER FOLLOWS ANOTHER AMALIA EXPRESSES HER DISBELIEF AT GEORG'S ATTEMPT TO ATONE FOR HAVING STOOD HER UP WHEN SHE SINGS HE BROUGHT ME ICE CREAM GEORG EXULTS ON THE SIDEWALK WITH THE TITLE SONG ILONA TELLS OF MEETING HER NEW LOVE AN OPTOMETRIST IN A TRIP TO THE LIBRARY AND THE SELFIMPORTANT STEVEN MASKS HIS DISAPPOINTMENT WITH HIS DISMISSAL FROM THE SHOP WITH A BRAVURA GOODBYE GRAND KNOWING YOU THE ACTION UNFOLDS IN A DELIGHTFUL ARTNOUVEAU SETTING DESIGNED BY TONY WALTON A TRUE BIJOU THAT OPENS LIKE A BOX OF BONBONS TO REVEAL THE SHOP THE CAFE AND VARIOUS OTHER LOCALES AS BEFITS A FAIRY TALE OF THE HEART ALL COMES RIGHT IN THE END THE LOVERS AFTER AGONIZING DELAYS FIND EACH OTHER AND THE OTHER COUPLES ALSO FIND THEIR PROPER MATES I HAVE BUT ONE QUIBBLE WITH BOTH THE PLAY AND THE PRODUCTION SINCE THIS IS A STORY WHOSE COMPONENTS ARE QUITE FAMILIAR TO US EVEN IF WE HAVE NEVER SEEN IT BEFORE THE SHOW COULD PROFITABLY BE CUT 10 TO 15 MINUTES IN THE FIRST ACT AND GAIN IMMEASURABLY FOR EXAMPLE TOWARD THE END OF ACT ONE WHEN AMALIA SITS ALONE IN THE CAFE ASSUMING SHE HAS BEEN STOOD UP THE SCENE OF HER DISAPPOINTMENT GOES ON FULLY FIVE MINUTES LONGER THAN IS NECESSARY THIS ONE CAVEAT ASIDE HOWEVER SHE LOVES ME IS JUST THE THING FOR A MUSICAL LIFT IT WILL TAKE YOU BACK TO AN ERA WHEN MUSIC AND THE BITTERSWEET PLEASURE OF ROMANCE WERE CAPTURED UNASHAMEDLY IN LILTING MELODIES AND WITTY INTELLIGENT LYRICS A BRIEF WORD SHOULD BE SAID ABOUT THE PRODUCING ORGANIZATION BEHIND SHE LOVES ME FOR MANY YEARS THE NOTFORPROFIT ROUNDABOUT OPERATED OFFBROADWAY LARGELY AS A REVIVAL HOUSE AT THE BEGINNING OF LAST SEASON WITH TREPIDATION AND AT CONSIDERABLE RISK IT MOVED TO A THEATER IN THE CRITERION CENTER ON BROADWAY WHERE THE THEATER HAS PRESENTED A SUCCESSION OF WELLRECEIVED PRODUCTIONS INCLUDING THIS PAST SEASON'S ANNA CHRISTIE WHICH WON THE AWARD AS YEAR'S BEST REVIVAL AT THE RECENT TONY CEREMONIES SHE LOVES ME MAY PROVE TO BE THE ROUNDABOUT'S MOST SUCCESSFUL PRODUCTION YET 9306230020 930623 INTERNATIONAL TOYOTA MOTOR CORP ACQUIRES 83 STAKE IN INDONESIAN FIRM JAKARTA TOYOTA MOTOR CORP FINALLY BOUGHT AN INTEREST IN PT ASTRA INTERNATIONAL PAYING 959 MILLION FOR AN 83 STAKE IN THE INDONESIAN CAR MAKER THAT WAS ROCKED LAST YEAR BY THE FINANCIAL COLLAPSE OF THE FOUNDING SOERYADJAYA FAMILY TOYOTA ON TUESDAY BOUGHT 20 MILLION SHARES THAT THE SOERYADJAYAS HAD SET ASIDE FOR IT NINE MONTHS AFTER ASTRA FIRST SAID THE JAPANESE AUTO MAKER WOULD MAKE AN INVESTMENT TOYOTA BECOMES THE SECONDBIGGEST SHAREHOLDER AFTER STATECONNECTED PT DANAREKSA FUND MANAGEMENT WITH 92 TOYOTA'S ENTRY SHOULD BOOST ASTRA WHILE ENCOURAGING FOREIGN BANKS TO MAINTAIN THEIR SUBSTANTIAL FUNDING ASTRA IS SEEKING TO REBOUND FROM A POOR 1992 THAT FEATURED WEAK CAR SALES AND TURMOIL AS THE SOERYADJAYAS SOLD NEARLY ALL OF THEIR MAJORITY HOLDING TO TACKLE DEBTS AT FAMILYOWNED PT BANK SUMMA ASTRA'S REVENUE DECLINED 95 TO 446 TRILLION RUPIAHS 214 BILLION WHILE PROFIT FELL 61 TO 815 BILLION RUPIAHS SINCE 1971 TOYOTA HAS BEEN A KEY ASTRA PARTNER OWNING 49 OF VEHICLEASSEMBLER PT TOYOTAASTRA MOTOR WITH ITS ASTRA STAKE TOYOTA IN EFFECT BECOMES A SHAREHOLDER IN THE INDONESIAN OPERATIONS OF HONDA MOTORCYCLES BMW CARS DAIHATSU TRUCKS AND OTHER NONTOYOTA BRANDS AT A PRICE OF 10000 RUPIAHS A SHARE TOYOTA BOUGHT ITS STAKE AT A SUBSTANTIAL DISCOUNT TO THE CURRENT MARKET PRICE AT THE BEGINNING OF THE YEAR ASTRA SHARES WERE TRADING AT ABOUT 9000 RUPIAHS A SHARE BUT HAVE RISEN STEADILY TUESDAY ASTRA STOCK CLOSED AT 13275 RUPIAHS ON THE JAKARTA STOCK EXCHANGE TOYOTA SAID THAT WITH THE PURCHASE IT INTENDS TO MAKE A CONTRIBUTION TOWARD FURTHER IMPROVING ASTRA'S MANAGEMENT STABILITY AND THE HEALTHY DEVELOPMENT OF THE INDONESIAN AUTOMOBILE INDUSTRY 9306230019 930623 CORRECTIONS & AMPLIFICATIONS THE INTERIOR DEPARTMENT'S BUREAU OF LAND MANAGEMENT IS RESPONSIBLE FOR FILING THE ENVIRONMENTAL ASSESSMENTS RELATED TO A DISPUTE OVER FEDERAL PREDATOR CONTROL EFFORTS ON BLM LAND IN THE WEST IN YESTERDAY'S ENVIRONMENT COLUMN IT WAS INCORRECTLY STATED THAT THE AGRICULTURE DEPARTMENT'S ANIMAL DAMAGE CONTROL OFFICE MAKES SUCH FILINGS THE ADC DRAFTS PREDATOR CONTROL PLANS THAT THE BLM THEN EVALUATES AS PART OF ITS ENVIRONMENTAL ASSESSMENT AMR CORP'S AMERICAN AIRLINES DOES NOT OFFER SEAT UPGRADES TO FLIERS WHO PURCHASE TICKETS WITH AN AMERICAN EXPRESS CO CARD AN ARTICLE YESTERDAY INCORRECTLY SAID THAT THE AIRLINE DOES OFFER SUCH AN UPGRADE OCELOT ENERGY INC PLANS TO SPIN OFF 100 OF LYNX ENERGY SERVICES CORP TO SHAREHOLDERS THE LYONS FAMILY WHICH OWNS ABOUT 35 OF OCELOT WILL OWN ABOUT 35 OF LYNX AN ARTICLE YESTERDAY SAID INCORRECTLY THAT OCELOT WOULD RETAIN 35 OF LYNX 9306230018 930623 LAW LEGAL BEAT LEGISLATORS FOCUS ON ESTATE LAWYERS' FEES BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL TRUSTSANDESTATES LAWYERS ARE STARTING TO GET SOME UNWANTED ATTENTION FROM STATE LEGISLATORS WHO CLAIM THAT MANY OF THE ATTORNEYS MAY BE GETTING PAID MORE THAN THEY DESERVE LAWMAKERS IN CALIFORNIA AND NEW YORK ARE FOCUSING ON A LUCRATIVE FORM OF DOUBLE DIPPING UNDER WHICH SOME ESTATE LAWYERS COLLECT FULL FEES BOTH FOR SERVING AS EXECUTORS AND FOR ACTING AS ATTORNEYS FOR THE SAME ESTATE TASKS THAT CAN SOMETIMES OVERLAP SINCE THE CLIENT IS DEAD AND BENEFICIARIES OF THE ESTATE MAY BE DISTRACTED BY GRIEF OFTEN NO ONE PROTESTS A PRACTICE THAT SOME CRITICS SAY AMOUNTS TO THE LEGAL LOOTING OF AN ESTATE SOME OF THESE LAWYERS ARE REAL PREDATORS SAYS GENE ERBIN A STAFF MEMBER ON THE CALIFORNIA ASSEMBLY'S JUDICIAL COMMITTEE THE CALIFORNIA LEGISLATION THAT WOULD MAKE SUCH DOUBLE DIPPING ILLEGAL HAS ALREADY PASSED THE ASSEMBLY BY A VOTE OF 740 AND WAS APPROVED YESTERDAY BY THE SENATE JUDICIARY COMMITTEE IT HAS BIPARTISAN SUPPORT AND IS EXPECTED TO BECOME LAW A SIMILAR PROPOSAL HAS GAINED A FOLLOWING IN NEW YORK AS WELL ALTHOUGH IT WAS RECENTLY SET ASIDE AT LEAST TEMPORARILY BECAUSE OF OPPOSITION FROM BAR GROUPS BECAUSE THESE STATES ARE CONSIDERED TO BE LEGISLATIVE LEADERS LAWYERS ARE PREDICTING THAT OTHER STATES WILL ALSO REVIEW THEIR LAWS DEALING WITH THIS ISSUE LAWS GOVERNING ESTATE WORK VARY WIDELY FROM STATE TO STATE IN NEW YORK AS IN SOME OTHER STATES FEES FOR EXECUTORS WHOSE TASKS INCLUDE MANAGING AND DISTRIBUTING AN ESTATE'S ASSETS ARE DETERMINED BY A SLIDING SCHEDULE OF PERCENTAGES ON A TYPICAL 1 MILLION ESTATE SAYS HARVEY CORN A NEW YORK ESTATES LAWYER AN EXECUTOR WOULD CHARGE ABOUT 34000 SEPARATELY THE SAME LAWYER MIGHT BILL ANOTHER 30000 OR SO AS ATTORNEY FOR THE ESTATE RESPONSIBLE FOR THE RELATED JOBS OF PROBATING THE WILL AND HANDLING TAX MATTERS IT IS EXTREMELY COMMON FOR THE SAME LAWYER TO HANDLE BOTH TASKS WHEN A FAMILY MEMBER OF THE DECEASED PERSON DOESN'T CHOOSE TO ACT AS EXECUTOR BUT THE EFFECTS OF DOUBLE DIPPING ARE MITIGATED BY SOME LAWYERS WHO VOLUNTARILY DISCOUNT THEIR FEES WHEN HANDLING BOTH JOBS AND BY SOME JUDGES WHO MANDATE SUCH DISCOUNTS NONETHELESS SOMETIMES NO REDUCTIONS OCCUR THE CALIFORNIA BILL WOULD ENSURE THAT LAWYERS WOULD BE ABLE TO GET BOTH FEES ONLY WITH PRIOR COURT APPROVAL THE BILL WOULD DISCOURAGE LAWYERS FROM NAMING THEMSELVES AS THE EXCLUSIVE TRUSTEE OF A TRUST MAKING SUCH ACTION A PRESUMPTION OF INVALIDITY ACCORDING TO MR ERBIN IN ADDITION THE LEGISLATION WOULD PROHIBIT LAWYERS FROM DRAFTING WILLS THAT LEAVE THEMSELVES GIFTS UNLESS THE CLIENT IS A RELATIVE OR LIVES WITH THE LAWYER THE BILL WAS INTRODUCED BY ASSEMBLYMAN TOM UMBERG A DEMOCRAT FROM ORANGE COUNTY AFTER A LAGUNA HILLS LAWYER JAMES D GUNDERON WAS ACCUSED OF DRAFTING DOCUMENTS THAT LEFT HIM MILLIONS OF DOLLARS IN THE ASSETS OF HIS CLIENTS MR GUNDERON'S LAWYER BARRY MICHAELSON SAID NO ACTION HAS BEEN TAKEN BY THE STATE BAR OR PROSECUTORS INVESTIGATING HIS CLIENT'S REPRESENTATION OF ELDERLY CLIENTS THE NEW YORK PROPOSAL WAS MADE BY A COMMITTEE OF JUDGES AND LAWYERS WHO REVIEW TRUSTSANDESTATES STATUTES AND RECOMMEND CHANGES TO THE LEGISLATURE ALTHOUGH IT IS LESS RESTRICTIVE THAN THE CALIFORNIA PROPOSAL IT HAS GENERATED MORE CONTROVERSY AT LEGISLATIVE HEARINGS IT WAS OPPOSED BY THE POWERFUL ASSOCIATION OF THE BAR OF THE CITY OF NEW YORK AND THE NEW YORK COUNTY LAWYERS ASSOCIATION A REPORT BY THE COUNTY BAR SAID THE PROPOSAL MANIFESTS A HOSTILITY TO ATTORNEYEXECUTORS THAT IS NOT SUPPORTED BY EMPIRICAL EVIDENCE THE REPORT ARGUES THAT THE PROBLEM OF GREEDY LAWYERS HAS BEEN EFFECTIVELY DEALT WITH BY COURT SCRUTINY OF LEGAL BILLS ALTHOUGH THE PROPOSAL HASN'T BEEN INCLUDED IN LEGISLATION INVOLVING OTHER ESTATE MATTERS SUPPORTERS HOPE IT WILL BE RAISED AGAIN SOME LAWYERS ARGUE THAT THE BEST WAY TO DEAL WITH ESTATE FEES IS TO NEGOTIATE THEM WITH CLIENTS WHILE THEY ARE LIVING A LAW RECENTLY PASSED IN FLORIDA ENCOURAGES PEOPLE TO ENTER INTO WRITTEN AGREEMENTS ON HOW ESTATE FEES WILL BE PAID IT ENCOURAGES BENEFICIARIES TO NEGOTIATE FEES AS WELL WILLIAM ZABEL AN ESTATE LAWYER WHO PRACTICES IN NEW YORK AND FLORIDA THINKS NEGOTIATION IS THE WISEST COURSE FOR PEOPLE WORRIED ABOUT LEGAL AND EXECUTOR FEES HE SAYS THAT EVEN EXTREMELY TOUGH BUSINESSPEOPLE AVOID THE SUBJECT OF ESTATE FEES PEOPLE DON'T NEGOTIATE LEGAL FEES IN THE DEATH SITUATION THE WAY THEY DO IN AN ORDINARY SITUATION AND THEY SHOULD SAYS MR ZABEL IN THIS AREA PEOPLE GET VERY INHIBITED A GROUP OF PEOPLE WHOSE HOMES AND BUSINESSES WERE DAMAGED BY LAST YEAR'S CIVIL DISTURBANCES IN LOS ANGELES AND BY HURRICANE INIKI IN HAWAII SUED THE FEDERAL EMERGENCY MANAGEMENT AGENCY CHARGING THAT IT DIDN'T DELIVER APPROPRIATE RELIEF SERVICES THE SUIT WHICH WAS FILED IN LOS ANGELES FEDERAL COURT AND SEEKS CLASSACTION STATUS ASKS FEMA TO BUILD TEMPORARY HOUSING SPEED UP ITS REVIEW PROCESS AND TAKE A NEW LOOK AT AID APPLICATIONS THAT THE AGENCY HAD PREVIOUSLY DENIED A SIMILIAR LAWSUIT WAS FILED IN FEDERAL COURT IN MIAMI BY VICTIMS OF HURRICANE ANDREW OF 1992 AMONG OTHER COMPLAINTS THE DISASTER VICTIMS ALLEGED THAT FEMA FAILED TO PROVIDE REPLACEMENT HOUSING DESPITE OVERWHELMING EVIDENCE THAT EXISTING RENTAL RESOURCES ARE NOT AVAILABLE AND REQUIRED DOCUMENTATION WHICH RESULTS IN A GREATER LIKELIHOOD OF DENIAL OF BENEFITS TO LOWERINCOME APPLICANTS SUCH AS REQUIRING SIGNED VERIFICATIONS OF CASH PAYMENTS BY EMPLOYERS A FEMA SPOKESMAN DECLINED TO COMMENT ON THE PENDING LITIGATION BUT SAID FEMA RESPONDS VERY QUICKLY AND VERY RAPIDLY TO DISASTERS THERE IS A SYSTEM FOR TAKING DISASTER APPLICATIONS WE ARE ALWAYS WORKING ON STREAMLINING AND QUICKENING THAT PROCESS BUT THE VAST MAJORITY OF PEOPLE ARE SERVED AND SERVED WELL THE VICTIMS OF THE LOS ANGELES AND HAWAII DISASTERS AIDED BY A COALITION OF LEGAL AID GROUPS AND A VOLUNTEER EFFORT BY THE LAW FIRM PROSKAUER ROSE GOETZ & MENDELSOHN PETITIONED FEMA FOR ADDITIONAL AID LAST YEAR BUT THE REQUEST FELL ON DEAF EARS SAID KAREN ERICKSON DIRECTING ATTORNEY OF THE LEGAL AID SOCIETY OF HAWAII THE ENSUING LAWSUIT SEEKS RELIEF SIMILAR TO THAT IN A SUIT FILED IN 1990 AGAINST FEMA BY VICTIMS OF THE 1989 SAN FRANCISCO EARTHQUAKE UNDER A SETTLEMENT REACHED LAST YEAR IN THAT CASE THE FEDERAL AGENCY AGREED TO PROVIDE ADDITIONAL SERVICES WHO'S NEWS JAMES K LOCKETT JOINED NEW YORK LAW FIRM LEBOEUF LAMB LEIBY & MACRAE AS A PARTNER IN ITS BRUSSELS OFFICE MR LOCKETT WHO WILL PRACTICE IN THE INTERNATIONAL TRADE AND CUSTOMS GROUP PREVIOUSLY WAS A PARTNER IN THE BRUSSELS OFFICE OF LAW FIRM DORSEY & WHITNEY PATIENT DISCLOSURE PATIENTS AREN'T OBLIGATED TO TELL HEALTHCARE WORKERS THAT THEY HAVE HIV THE VIRUS THAT CAUSES AIDS OR ANY OTHER MEDICAL CONDITION A STATE COURT JUDGE IN LOS ANGELES RULED IN A CASE BROUGHT BY A MEDICAL TECHNICIAN BUT THE JUDGE LET STAND A JURY VERDICT OF FRAUD IN THE CASE AND REFUSED TO REDUCE THE 102500 IN DAMAGES AWARDED AGAINST THE PATIENT THE JUDGE CITED GOVERNMENT POLICY PROTECTING THE CONFIDENTIALITY OF PATIENTS' HIV STATUS ATTORNEYS FOR THE PATIENT SAID THEY PLAN TO APPEAL THE JUDGE'S DECISION ON THE FRAUD VERDICT PROMOTING PRO BONO FORDHAM UNIVERSITY SCHOOL OF LAW IN NEW YORK APPOINTED PROF THOMAS M QUINN AS THE FIRST HOLDER OF THE SIDNEY C NORRIS CHAIR OF LAW THE SCHOOL SAID THE POSITION IS THE FIRST ACADEMIC CHAIR DEDICATED TO THE STUDY AND PROMOTION OF PUBLIC INTEREST LAW PROF QUINN WAS A FOUNDER OF THE NEW YORK LEGAL SERVICES CORP AMY STEVENS CONTRIBUTED TO THIS ARTICLE 9306230017 930623 ECONOMY KMART PROFIT TO TRAIL LAST YEAR'S LEVELS NEWS SENDS BIG RETAILERS' STOCKS SLIDING BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL KMART CORP SIGNALING PROBLEMS AT OTHER MAJOR RETAILERS SAID IT EXPECTS FISCAL SECONDQUARTER PROFIT SIGNIFICANTLY BELOW THE YEARAGO LEVEL BECAUSE OF WEAK APPAREL SALES THE TROY MICH DISCOUNT RETAILER SAID EARNINGS IN THE QUARTER ENDING JULY 28 WON'T APPROACH THE 168 MILLION OR 37 CENTS A SHARE EARNED A YEAR AGO IT ALSO SAID FULLYEAR NET INCOME WILL FALL BELOW 1992'S 941 MILLION OR 206 A SHARE CHAIRMAN JOSEPH ANTONINI BLAMED COOL WEATHER AND CAUTIOUS CONSUMER SPENDING FOR SLOWING SECONDQUARTER SALES OF ITS HIGHMARGIN WARMWEATHER FASHIONS IN ADDITION KMART'S PACE MEMBERSHIP WAREHOUSE UNIT CONTINUES TO STRUGGLE THE NEWS FROM THE NATION'S SECONDLARGEST RETAILER AFTER WALMART STORES INC SENT ITS STOCK PRICE AND THOSE OF SEVERAL OTHER BIG RETAILERS TUMBLING KMART'S STOCK DROPPED 150 TO 20125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ALSO ON THE BIG BOARD GAP INC FELL 1 TO 3050 JC PENNEY INC SLID 1375 TO 4425 SEARS ROEBUCK & CO DECLINED 1 TO 5325 AND MAY DEPARTMENT STORES INC SLIPPED 875 CENTS TO 35875 THE STOCK OF WALMART A RETAILER THAT RELIES LESS HEAVILY THAN OTHERS ON CLOTHING DECLINED ONLY 25 CENTS TO 24875 APPAREL SALES HAVE BEEN WEAK FOR SEVERAL MONTHS FOLLOWING THE ESPECIALLY STRONG CHRISTMAS SEASON FOR RETAILERS SINCE THEN CONSUMER CONFIDENCE HAS CHILLED DUE TO CONCERNS ABOUT THE ECONONY AND PROPOSED TAX INCREASES MANY CONSUMERS CUT BACK ON APPAREL BUYING WHEN THEY PERCEIVE TOUGHER ECONOMIC TIMES AHEAD IN CONTRAST CONSUMERS APPEAR TO STILL BE SPENDING ON HARD GOODS LIKE FURNITURE BECAUSE OF PENTUP DEMAND SO FAR IN JUNE HARDGOOD SALES AT KMART STORES OPEN AT LEAST A YEAR ARE UP 7 TO 8 WHILE APPAREL SALES ARE FLAT ESTIMATES JEFFREY EDELMAN AN ANALYST WITH CJ LAWRENCE WITHOUT STONG APPAREL SALES OTHER RETAILERS ARE ALSO LIKELY TO POST FLAT TO DOWN SECONDQUARTER RESULTS FURTHER RETAILERS WITH EXCESS INVENTORY WILL HAVE TO DISCOUNT HEAVILY IN THE SECOND HALF TO EVEN MEET THE SALES THEY HAD A YEAR AGO CONTENDED THOMAS TASHJIAN AN ANALYST WITH FIRST MANHATTAN THAT TRANSLATES INTO LOWPROFITMARGIN SALES IN THE CRITICAL HOLIDAY SEASON A WEAK ECONOMY ISN'T KMART'S ONLY HURDLE IT'S ALSO TRYING WITH MIXED RESULTS TO PROMOTE ITSELF AS A PURVEYOR OF TOPQUALITY VALUEPRICED CLOTHING RIVAL SEARS THOUGH IS APPARENTLY HAVING MORE SUCCESS LATELY THAN KMART WITH A SIMILAR MISSION MR TASHJIAN SAID SEARS IS SHOWING GOOD INCREASES IN APPAREL WITH ITS AGGRESSIVE PROMOTIONS MORE BRAND NAMES AND MORECOMPETITIVE PRICES KMART'S PROBLEMS ARE COMPOUNDED BY ITS PACE MEMBERSHIP WAREHOUSE UNIT THE OPERATION WILL POST ANOTHER LOSS IN THE SECOND QUARTER BECAUSE OF INTENSE COMPETITION WITHIN THE INDUSTRY WHICH SELLS GENERAL MERCHANDISE AND FOOD IN LARGE NOFRILLS STORES LAST MONTH KMART SOLD 14 UNPROFITABLE PACE CLUBS TO RIVAL SAM'S CLUB THE NO 1 CLUB CHAIN AND A UNIT OF WALMART AND THE MERGER ANNOUNCED LAST WEEK BY PRICE CO AND COSTCO WHOLESALE CORP THE SECONDLARGEST AND THIRDLARGEST CHAINS WILL CONSIDERABLY INCREASE PRESSURE ON SMALLER PLAYERS LIKE PACE BY LOWERING PRICES AT PACE AMONG OTHER THINGS KMART PROJECTS THAT THE UNIT'S RESULTS WILL IMPROVE THAT WILL HELP BOOST KMART'S SECONDHALF PROFIT FROM A YEAR EARLIER SAID MR ANTONINI STILL CAUTIONS CJ LAWRENCE'S MR EDELMAN IN ALL REALITY YOU CANNOT SHOW MUCH IMPROVEMENT UNLESS YOU HAVE SOME ECONOMIC GROWTH FOR KMART ANY IMPROVEMENT DURING THE CRITICAL HOLIDAY SEASON WON'T BE ENOUGH TO OFFSET THE WEAK SECOND PERIOD AND THE FIRST QUARTER'S 80 PROFIT DECLINE FROM THE YEAR BEFORE 9306230016 930623 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY TOM HERMAN NANNYTAX RELIEF HITS A ROADBLOCK BUT DON'T GIVE UP HOPE OVERHAULING THE LAW IS PROVING SURPRISINGLY TRICKY EVEN THOUGH MANY LAWMAKERS SUPPORT MAJOR CHANGES THE HOUSE APPROVED CHANGES EARLIER THIS YEAR AS PART OF THE TAX BILL BUT A PARLIAMENTARY HURDLE IN THE SENATE MAY BLOCK THE MEASURE FROM INCLUSION IN ITS TAX BILL INSTEAD SENATE FINANCE CHAIRMAN MOYNIHAN IS LIKELY TO INCLUDE CHANGES IN SEPARATE LEGISLATION LATER THIS YEAR THE LAW NOW REQUIRES INDIVIDUALS PAYING MORE THAN 50 A QUARTER TO SUCH WORKERS AS BABY SITTERS HOUSEKEEPERS AND GARDENERS TO PAY SOCIAL SECURITY TAX THE HOUSE VOTED TO RAISE THAT THRESHOLD TO 1800 A YEAR EFFECTIVE IN 1994 AND INDEX IT THEREAFTER FOR INCREASES IN AVERAGE WAGES IN THE ECONOMY THE HOUSE ALSO VOTED TO MAKE THE THRESHOLD RETROACTIVE ADJUSTED FOR WAGE INFLATION SINCE 1950 THUS LIBERATING MANY EMPLOYERS WHO NEVER BOTHERED FILING BUT THE HOUSE BILL WOULDN'T ALLOW REFUNDS FOR PAST PAYMENTS PLEASE CONGRESS PHASE IN TAX INCREASES GRADUALLY ECONOMISTS SAY THE HOUSE VOTED TO RAISE THE TOP RATES TO 36 AND 396 THIS YEAR FROM 31 BUT THE SENATE FINANCE COMMITTEE APPROVED A GRADUAL PHASEIN WITH ONLY HALF THE INCREASES THIS YEAR THAT WOULD RAISE THE TOP 1993 BRACKETS TO 335 AND 353 THE ECONOMY ISN'T STRONG ENOUGH TO WITHSTAND THE HOUSE VERSION WARNS IRWIN KELLNER CHIEF ECONOMIST AT CHEMICAL BANKING CORP IT WOULD TAKE SO MUCH MONEY OUT OF THE ECONOMY THAT IT COULD ABORT THE RECOVERY ROGER BRINNER OF DRI/MCGRAWHILL CALLS THE SENATE COMMITTEE PLAN MUCH BETTER BECAUSE IT TAKES MUCH LESS ENERGY OUT OF THE ECONOMY THIS YEAR AND ALLOWS US TO ENTER 1994 WITH MORE POSITIVE MOMENTUM BUT LAWRENCE KUDLOW OF BEAR STEARNS CONTENDS THE PHASEIN PLAN WILL LIFT THE ECONOMY LATE THIS YEAR AT THE EXPENSE OF 1994 AN ELECTION YEAR RELAX SAYS DEPUTY TREASURY SECRETARY ROGER ALTMAN HE REMAINS OPTIMISTIC ABOUT CONTINUED ECONOMIC GROWTH NEVER MIND THE IRS CHANGES ITS TUNE ON A CONTROVERSIAL PLAN THE ABOUTFACE DELIGHTS COMPANIES OFFERING REFUNDANTICIPATION LOANS LAST YEAR THE IRS SAID IT PLANNED A CHANGE IN ITS ELECTRONICRETURN FILING PROCEDURES STARTING IN 1994 AS PART OF AN ANTIFRAUD CAMPAIGN BUT CRITICS COMPLAINED THE IRS MOVE WOULD HURT THE REFUNDANTICIPATION LOAN BUSINESS NOW AFTER RECEIVING MORE THAN 300 LETTERS THE IRS DROPS THE IDEA THE IRS NOW SAYS IT WILL CONTINUE TELLING PREPARERS WHO OFFER ELECTRONIC FILING WHETHER A CUSTOMER OWES A FEDERAL DEBT TAXPAYERS WHO DO OWE SUCH A DEBT AREN'T ELIGIBLE FOR DIRECT DEPOSIT OF THEIR REFUNDS INTO BANK ACCOUNTS H&R BLOCK PRAISES THIS DECISION SAYING IT HELPS CONTROL LOANLOSS RISK THE IRS SAYS OTHER STEPS TO COMBAT FRAUD ARE WORKING AND IT PLANS MORE IN 1994 OF 13 MILLION RETURNS FILED ELECTRONICALLY THIS YEAR THE IRS SAYS 12738 WERE FRAUDULENT THOSE FRAUDULENT RETURNS CLAIMED 295 MILLION IN REFUNDS THE IRS STOPPED 227 MILLION OF THAT FROM BEING ISSUED VICTORY APPEARS NEAR FOR MUSEUMS SCHOOLS CHARITIES AND OTHER NONPROFIT GROUPS SEN MOYNIHAN BACKS A MEASURE ALLOWING MORE PEOPLE TO DEDUCT FULL MARKET VALUE NOT JUST COST ON GIFTS OF ART STOCKS BONDS REAL ESTATE AND OTHER ITEMS WHOSE VALUE HAS INCREASED ACADEMIA TAKE NOTE THE IRS PLANS A PUBLIC HEARING ON ITS PROPOSED GUIDELINES FOR AUDITING COLLEGES AND UNIVERSITIES THE HEARING WILL BE HELD JULY 2829 STARTING AT 9 AM AT IRS HEADQUARTERS LOCAL TAX REVENUE ROSE EVEN FASTER THAN STATE TAX RECEIPTS IN RECENT YEARS FROM 1985 TO 1991 LOCAL TAX REVENUE JUMPED 60 WHILE STATE TAX REVENUE ROSE 44 SAYS STEVEN GOLD OF THE CENTER FOR THE STUDY OF THE STATES ALBANY NY HE SAYS THIS IS A BIG CHANGE FROM THE 1970S WHEN STATE TAX REVENUE ROSE MUCH FASTER THAN THAT FOR MUNICIPALITIES MANY RETIREES WOULD BENEFIT FROM THE SENATE PANEL'S TAX BILL BOTH THE HOUSE AND SENATE FINANCE COMMITTEE BILLS WOULD RAISE TAXES ON SOCIAL SECURITY BENEFITS BUT THE SENATE VERSION WOULD AFFECT ABOUT TWO MILLION FEWER PEOPLE THAN THE HOUSE BILL THE AMERICAN ASSOCIATION OF RETIRED PERSONS SAYS THE SENATORS VOTED TO RAISE THE INCOME THRESHOLDS FOR INCREASED TAXATION INDIVIDUALS WITH INCOME OF MORE THAN 32000 AND COUPLES FILING JOINTLY WITH MORE THAN 40000 IN INCOME WOULD BE SUBJECT TO THE HIGHER TAX THAT COMPARES WITH 25000 AND 32000 IN THE HOUSE BILL THE SAME THRESHOLDS AS UNDER CURRENT LAW IN BOTH PLANS RETIREES WHOSE INCOME EXCEEDS THE THRESHOLDS WOULD OWE TAX ON 85 OF THEIR SOCIAL SECURITY BENEFITS STARTING NEXT YEAR UP FROM 50 NOW AARP ESTIMATES THAT ABOUT 66 MILLION RETIREES WOULD PAY MORE TAXES UNDER THE SENATE PLAN COMPARED WITH 88 MILLION PEOPLE UNDER THE HOUSE VERSION THOUGH POPULAR THE SENATE PANEL VERSION WOULD FORCE CONGRESS TO FIND 58 BILLION OF TAX INCREASES OR SPENDING CUTS SOMEWHERE ELSE BRIEFS NEW IRS COMMISSIONER MARGARET MILNER RICHARDSON SAYS THE QUESTION SHE IS ASKED MOST FREQUENTLY IS WHY WOULD YOU WANT TO BE COMMISSIONER OF INTERNAL REVENUE A SONG BY CAPITOL STEPS A WASHINGTON POLITICALSATIRE GROUP PARODIES THE SONG THAT BEGINS TEACH YOUR CHILDREN WELL AS FOLLOWS TAX/ OUR CHILDREN WELL/ TO PAY FOR SWELL/ OLD AGE ADVENTURES/ IT'S YOU/ WE'RE LIVING OFF/ SO WE CAN GOLF/ AND BUY OUR DENTURES 9306230015 930623 WILDERNESS PRESERVE SET IN BRITISH COLUMBIA AT WINDY CRAGGY SITE VANCOUVER BRITISH COLUMBIA THE BRITISH COLUMBIA GOVERNMENT SAID IT WILL CREATE A WILDERNESS RESERVE IN THE NORTHWEST SECTION OF THE PROVINCE EFFECTIVELY HALTING DEVELOPMENT OF THE CONTROVERSIAL WINDY CRAGGY COPPER GOLD AND COBALT DEPOSIT BRITISH COLUMBIA PREMIER MICHAEL HARCOURT SAID THE GOVERNMENT PLANS TO COMPENSATE FAIRLY THE HOLDERS OF MINERAL CLAIMS LOCATED IN THE AREA WHICH IS KNOWN AS THE TATSHENSHINIALFEC REGION GEDDES RESOURCES LTD WHICH OWNS WINDY CRAGGY HAS INVESTED MORE THAN 50 MILLION CANADIAN DOLLARS US393 MILLION OVER 10 YEARS TO EXPLORE THE DEPOSIT THE COMPANY SAID HOWEVER THAT IT WILL SEEK PAYMENT FROM THE PROVINCE OF SEVERAL HUNDRED MILLIONS OF DOLLARS TO COMPENSATE IT ALSO FOR THE LOST BUSINESS OPPORTUNITY WHILE WE RECOGNIZE THERE WILL BE ECONOMIC COSTS FROM THIS DECISION THE BENEFITS TO THE GLOBAL ENVIRONMENT FROM THIS WORLD WILDERNESS RESERVE ARE UNMATCHED MR HARCOURT SAID WINDY CRAGGY HAS LONG BEEN UNDER ATTACK FROM ENVIRONMENTALISTS CONCERNED ABOUT POTENTIAL ACID RUNOFF IF A MINE SHOULD BE BUILT THE DEPOSIT IF DEVELOPED WOULD HAVE PRODUCED ROUGHLY 1 OF THE WORLD'S SUPPLY OF COPPER FOR A PERIOD OF 25 YEARS GEDDES SAID ENVIRONMENTAL GROUPS HAILED THE GOVERNMENT'S DECISION AS A MAJOR VICTORY THIS IS WILDERNESS ON A TRULY GRAND SCALE AND IT HAS BEEN SAVED SAID TOM CASSIDY GENERAL COUNSEL FOR AMERICAN RIVERS A US ENVIRONMENTAL GROUP THIS IS A HISTORIC MOMENT GEDDES IS OWNED 40 BY ROYAL OAK MINES INC AND 20 BY COMINCO LTD ALL ARE MINING COMPANIES IN VANCOUVER 9306230014 930623 TECHNOLOGY & HEALTH COMPUADD SEEKS CHAPTER 11 SHIELD AS ITS STORES CLOSE BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL COMPUADD COMPUTER CORP A ONETIME HEAVYWEIGHT IN THE MAILORDER COMPUTER BUSINESS SAID IT FILED FOR FEDERAL BANKRUPTCYCOURT PROTECTION HAVING REACHED A STANDOFF WITH ITS LANDLORDS THE CLOSELY HELD AUSTIN TEXAS COMPANY SAID IT FILED THE PETITION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN HOPES OF RESOLVING REAL ESTATE DISPUTES STEMMING FROM THE SHUTDOWN OF ITS COMPUTER RETAIL OPERATION EARLIER THIS YEAR THE COMPANY FACING INCREASED COMPETITION IN ITS CORE MAILORDER BUSINESS AND DEEP PRICECUTTING FROM COMPAQ COMPUTER CORP AND INTERNATIONAL BUSINESS MACHINES CORP AMONG OTHERS LAST WEEK CLOSED THE LAST OF ITS 110 RETAIL STORES AND IS IN THE MIDST OF LAYING OFF ABOUT 600 PEOPLE THE COMPANY SAID THE RETAIL CLOSINGS ARE EXPECTED TO SLICE IN HALF REVENUE THAT LAST YEAR TOTALED 5244 MILLION THOUGH THE COMPANY HAS DECLINED TO SAY WHETHER IT IS PROFITABLE THE BANKRUPTCY COURT FILING LISTS LIABILITIES OF 962 MILLION AND ASSETS OF 805 MILLION THOUGH COMPUADD SAID ITS DAYTODAY BUSINESS WILL CONTINUE UNAFFECTED BY THE BANKRUPTCYCOURT PETITION THE COMPANY INTENDS TO FILE A PLAN OF REORGANIZATION SOON THE MOVE NEVERTHELESS MARKS A SHARP TURNABOUT FOR A COMPANY LONG VIEWED AS A MAJOR PC INDUSTRY CONTENDER FOR YEARS COMPUADD WAS TRACKED BY ANALYSTS AS A POTENTIAL THREAT TO DELL COMPUTER CORP A CROSSTOWN MAILORDER RIVAL THAT HAS SINCE FAR OUTPACED COMPUADD IN GROWTH DELL REPORTED REVENUE OF 2 BILLION FOR ITS FISCAL YEAR ENDED JAN 31 IN THE LAST YEAR THOUGH THE COMPANY LIKE MANY IN THE PC INDUSTRY HAS BEEN STUNG BY FALLING PRICES AND AN AGGRESSIVE MARKETING WAR AMONG LEADING VENDORS IN ADDITION COMPUADD IN FEBRUARY LOST A 724 MILLION GOVERNMENT COMPUTER CONTRACT FOLLOWING PROTESTS FROM LOSING BIDDERS IN AN EFFORT TO SHORE UP ITS EXISTING MAILORDER BUSINESS THE COMPANY THIS WEEK ANNOUNCED PLANS TO REPLACE ITS ENTIRE LINE OF MACHINES WITH 47 NEW PRODUCTS RANGING FROM ENTRYLEVEL PCS TO HIGHEND SERVERS JOHN POPE A COMPUADD SPOKESMAN SAID THE BANKRUPTCYCOURT PETITION WAS FILED TO ENABLE THE COMPANY TO FOCUS SOLELY ON ITS NEW PRODUCTS AND EXISTING MAILORDER CUSTOMERS WE DO HAVE A HEALTHY ONGOING BUSINESS AND THAT'S WHAT WE'RE TRYING TO PRESERVE HERE HE SAID COMPUADD SAID ITS CHAPTER 11 FILING DOESN'T INCLUDE ITS SUBSIDIARIES OR ITS EUROPEAN OPERATION 9306230013 930623 BUSINESS BRIEF CABLEVISION SYSTEMS CORP AGREEMENT REACHED TO BUY ASSETS OF WESTINGHOUSE UNIT CABLEVISION SYSTEMS CORP AGREED TO BUY THE ASSETS OF CATV ENTERPRISES INC A CABLE SYSTEM SERVING ABOUT 11000 SUBSCRIBERS IN NEW YORK CITY FROM WESTINGHOUSE ELECTRIC CORP'S WESTINGHOUSE BROADCASTING CO CABLEVISION WILL BUY THE ASSETS FOLLOWING THE EXPIRATION OF CATV'S TEMPORARY PERMIT TO OPERATE ITS CABLE SYSTEM THE PERMIT GRANTED IN 1965 AND EXTENDED PERIODICALLY ALLOWED CATV TO PROVIDE CABLE SERVICE UNTIL CABLEVISION OF NEW YORK CITY THE FRANCHISE HOLDER FOR THE BRONX COMPLETED CONSTRUCTION OF ITS CABLE SYSTEM IN THE AREA CATV OPERATES IN THE RIVERDALE SECTION OF NEW YORK'S BRONX BOROUGH NO PRICE WAS DISCLOSED CATV ENTERPRISES HAS BEEN MANAGED AND IS 49 OWNED BY WESTINGHOUSE BROADCASTING CO'S GROUP W SATELLITE COMMUNICATIONS UNIT THE REMAINING 51 STAKE IS OWNED BY THE ESTATE OF A CATV FOUNDER 9306230012 930623 PARKER & PARSLEY EXTENDS DEADLINE IN TENDER OFFER MIDLAND TEXAS PARKER & PARSLEY PETROLEUM CO SAID IT WILL PUSH BACK UNTIL JULY 2 THE DEADLINE IN ITS TENDER OFFER FOR UNITS IN 35 PRUDENTIALBACHE ENERGY PARTNERSHIPS THE OFFER WAS TO EXPIRE YESTERDAY SO FAR 22 MILLION UNITS VALUED AT 2128 MILLION HAVE BEEN TENDERED BY UNIT HOLDERS OR 85 OF THE 250 MILLION MINIMUM THAT MUST BE TENDERED PARKER & PARSLEY WON A BIDDING WAR TWO WEEKS AGO FOR THE PARTNERSHIPS AFTER INCREASING ITS TOTAL OFFER TO 508 MILLION INCLUDING 17 MILLION TO BE PAID TO THE GENERAL PARTNERS ITS EARLIER BID WOULD HAVE PAID 4483 MILLION TO UNIT HOLDERS THE OIL AND GAS COMPANY BLAMED THE SLOW PACE ON CONFUSION OVER THE OFFER AND ON THE SHEER NUMBER OF ACCOUNTS THE PARTNERSHIPS HAD ANOTHER SUITOR LOUIS DREYFUS NATURAL GAS CORP A UNIT OF FRANCE'S LOUIS DREYFUS GROUP WHICH MADE A 510 MILLION BID THREE DAYS BEFORE A PRUDENTIAL INSURANCE CO OF AMERICA UNIT AGREED TO SELL TO PARKER & PARSLEY PARKER & PARSLEY FILED A LAWSUIT IN A TEXAS DISTRICT COURT IN MIDLAND ALLEGING THAT DREYFUS MALICIOUSLY INTERFERED WITH ITS BID AND SEEKING 500 MILLION IN DAMAGES THE SUIT WAS SETTLED OUT OF COURT EARLY THIS MONTH 9306230010 930623 MILITARY SCIENTIST A SOCIOLOGIST HELPS PENTAGON FIND A WAY TO LIFT ITS GAY BAN RESEARCH BY CHARLES MOSKOS LED TO A COMPROMISE DON'T ASK DON'T TELL' JOINT CHIEFS TO ACT THIS WEEK BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CHARLES MOSKOS APPEARS TO BE EVERYWHERE THESE DAYS THE 59YEAROLD MILITARY SOCIOLOGIST IS GATHERING EVIDENCE ON THE HARDSHIPS OF PEACEMAKING IN PLACES LIKE SOMALIA A CIVILIAN NATIONALSERVICE PROGRAM AN IDEA HE BROUGHT TO BILL CLINTON'S ATTENTION WAS APPROVED BY TWO CONGRESSIONAL PANELS EARLIER THIS MONTH AS FOR RACE RELATIONS WITHIN THE MILITARY PROF MOSKOS STANDS OUT AS A GLOBAL AUTHORITY BUT MOST CRITICALLY HE IS ARCHITECT OF THE COMPROMISE ON HOMOSEXUALS IN THE MILITARY THAT WILL PROBABLY END A PAINFUL STANDOFF BETWEEN THE WHITE HOUSE AND THE PENTAGON YESTERDAY A LEAKED VERSION OF THAT COMPROMISE APPEARED ON THE FRONT PAGE OF THE WASHINGTON TIMES THE VERSION DRAWN UP IN THE PENTAGON WOULD LIFT THE BAN ON GAYS IN THE MILITARY BUT KEEP LANGUAGE STATING THAT HOMOSEXUALITY IS INCOMPATIBLE WITH MILITARY SERVICE THE WHITE HOUSE IS IN AN UPROAR OVER THAT ASPECT OF THE COMPROMISE ACCORDING TO AN OFFICIAL CLOSE TO THE DEBATE BUT THE FUNDAMENTAL PLAN KNOWN AS DON'T ASK DON'T TELL WAS HATCHED BY PROF MOSKOS EARLIER THIS YEAR AND IS EXPECTED TO BE EMBRACED UNDER THE COMPROMISE THE US WOULD PERMANENTLY END THE PRACTICE OF ASKING ENLISTEES ABOUT THEIR SEXUAL ORIENTATION HOWEVER HOMOSEXUALS IN THE MILITARY WOULDN'T DECLARE IT THOUGH BASED AT NORTHWESTERN UNIVERSITY IN ILLINOIS PROF MOSKOS IS A SPECIAL KIND OF WASHINGTON PLAYER THE BEHINDTHESCENES THINKER CHARLEY'S ONE OF THOSE QUIET GUYS NOBODY OUTSIDE HIS DISCIPLINE KNOWS MUCH ABOUT WHO IS GOING TO WIND UP HAVING ENORMOUS INFLUENCE ON HIS COUNTRY SAYS AL FROM PRESIDENT OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL IF THE COMPROMISE HE FASHIONED FLIES HE WILL BE CREDITED WITH HELPING EASE THE PRESIDENT OUT OF ONE OF HIS EARLIEST AND MOST VEXING POLITICAL SNARLS PROF MOSKOS WHO CRITICIZES PRESIDENT CLINTON FOR BEING TONE DEAF ON THE MILITARY HAS SPENT DECADES LISTENING TO EVERYONE FROM BUCK PRIVATES TO FOURSTAR GENERALS HE HAS THE UNUSUAL WILLINGNESS TO GO WHERE THE TROOPS ARE SAYS RETIRED GEN MAXWELL THURMAN WHO OVERSAW THE 1989 US INVASION OF PANAMA WHEN I WAS DOING PANAMA HE CAME ON DOWN INDEED PROF MOSKOS HAS DONE FIELD RESEARCH DURING EVERY MAJOR ARMY DEPLOYMENT OVER THE LAST 30 YEARS EXCEPT GRENADA AN OMISSION THAT ANNOYS HIM AND WHILE HE IS ON FRIENDLY TERMS WITH THE PENTAGON'S TOP BRASS HE LIKES TO THINK OF HIMSELF AS A WALKING TRIBUNE OF THE ENLISTED MAN HE'S CERTAINLY THE MOST INFLUENTIAL MILITARY SOCIOLOGIST IN THE COUNTRY AND PROBABLY IN THE WORLD SAYS UNIVERSITY OF MARYLAND SOCIOLOGIST DAVID SEGAL HE'S A TOPFLIGHT FIELD RESEARCHER AND HE SEES THINGS GOING ON IN THE MILITARY BEFORE OTHER PEOPLE SEE THEM AFTER YEARS OF GETTING TO KNOW MILITARY PERSONNEL AT ALL LEVELS HE ISN'T SURPRISED THAT THE HOMOSEXUAL QUESTION HAS ERUPTED INTO A POLITICAL TRAUMA WHILE CAUSING LESS OF A STIR IN THE MILITARIES OF MANY US ALLIES NO OTHER COUNTRY HAS A STRONG RELIGIOUS RIGHT AND AN ACTIVE GAY MOVEMENT HE SAYS WE ARE UNIQUE THAT'S WHY THE MILITARY IS BEING TORN ON THIS STRIDING INTO A MESS HALL AT FORT DRUM IN UPSTATE NEW YORK ONE MORNING THIS MONTH THE BARRELCHESTED CREWCUT PROF MOSKOS IS A WHIRL OF ENERGETIC BUT SKEPTICAL OBSERVATION HE INTERVIEWS EVERYONE HE ENCOUNTERS HE IS PLEASED TO SEE THAT BLACK AND WHITE SOLDIERS ARE MIXED THROUGHOUT THE ROOM THERE'S NO RACIAL CLUMPING HE OBSERVES HAPPILY THOUGH PROF MOSKOS CLEARLY LIKES THE MILITARY HE DOESN'T ROMANTICIZE IT DRUM SERGEANT MAJOR TELLS HIM THAT BASE RULES LIMIT ALCOHOL IN BARRACKS TO A SIXPACK OF BEER OR A BOTTLE OF WINE FOR EACH PERSON PROF MOSKOS CHECKS WITH AN ENLISTEE WHO TELLS HIM THE RULES AREN'T ENFORCED SOME PEOPLE YOU HAVE TO POUR INTO BED THE SOLDIER REPORTS AND WHEN AN INFANTRYMAN COMPLAINS ABOUT POWERTRIPPING SERGEANTS MR MOSKOS SHRUGS WITH THE KNOWLEDGE OF ONE WHO HAS BEEN THERE WHAT'S NEW ABOUT THAT DRAFTED AFTER GRADUATING FROM PRINCETON IN 1956 MR MOSKOS DID A TOUR WITH THE ARMY IN GERMANY WHILE STILL A PRIVATE HE WROTE HIS FIRST ARTICLE ON MILITARY LIFE HAS THE ARMY KILLED JIM CROW AND PUBLISHED IT IN THE NEGRO HISTORY BULLETIN SINCE THEN HE HAS MANAGED TO VISIT AND WRITE ABOUT THE US MILITARY ALL OVER THE WORLD USING GRANTS FROM THE FORD FOUNDATION THE ROCKEFELLER FOUNDATION AND THE TWENTIETH CENTURY FUND IN VIETNAM HIS FIRST TOUR AS A COMBAT SOCIOLOGIST HE IRKED THE ARMY BY POINTING OUT THAT US SOLDIERS DISDAINED THEIR VIETNAMESE ALLIES HE ALSO POINTED OUT THE CORROSIVE EFFECT OF MOVING INDIVIDUALS IN AND OUT ON 12MONTH ROTATIONS RATHER THAN KEEPING UNITS TOGETHER IN 1966 HE FOLLOWED US FORCES TO THE DOMINICAN REPUBLIC IN 1970 HE SPENT EIGHT MONTHS WITH UNITED NATIONS PEACEKEEPERS ON CYPRUS CONCLUDING THAT PEACEKEEPING ISN'T A SOLDIER'S JOB BUT ONLY A SOLDIER CAN DO IT HE TRAVELED TO HONDURAS IN 1985 AND THEN WITNESSED THE PANAMA ACTION AFTER INTERVIEWING NEARLY ALL THE WOMEN WHO CAME IN HARM'S WAY THERE HE CONCLUDED THAT THERE WAS AN OFFICERENLISTED DIFFERENCE ENLISTED WOMEN AREN'T KEEN ON GOING INTO COMBAT ON THE EVE OF THE PERSIAN GULF WAR HE ASSESSED THE MOTIVATION OF US TROOPS AND FOUND IT STRONG RECENTLY HE HAS GLOBETROTTED TO THE US OPERATION IN SOMALIA AND TO THE ITALIAN MILITARY MISSION IN ALBANIA NEXT ON THE SCHEDULE IS A TRIP TO SOUTH AFRICA TO ADVISE THE AFRICAN NATIONAL CONGRESS AND THE DEFENSE MINISTRY ON INTEGRATING THE POSTAPARTHEID MILITARY PROF MOSKOS CHARGED INTO THE GAY DEBATE EARLYBUT ON THE SIDE OF CONTINUING THE CURRENT GAY BAN ENLIGHTENED GAY ADVOCATES SHOULDN'T ARGUE FOR COMPULSORY INTIMACY AMONG PERSONS OF OPENLY DIFFERENT SEXUAL ORIENTATION HE WROTE IN A 1992 ARMY TIMES COLUMN REP BARNEY FRANK ONE OF TWO OPENLY GAY MEMBERS OF CONGRESS COMPLAINS THAT THE ARTICLE SUPPLIED THE MILITARY BRASS WITH A RATIONALE FOR CONTINUING THE PROHIBITION BUT AFTER PRESIDENT CLINTON'S ELECTION PROF MOSKOS RECONSIDERED DURING A TWOHOUR MEETING WITH SAM NUNN CHAIRMAN OF THE SENATE ARMED SERVICES PANEL THE SOCIOLOGIST SUGGESTED THERE MIGHT BE A LIMITED STEP THAT WOULD BE ACCEPTABLE BOTH TO THE MILITARY AND THE NEW PRESIDENT HE'S BEEN A VALUABLE RESOURCE FOR A LONG TIME SAYS SEN NUNN OF DON'T ASK DON'T TELL HE SAYS THAT PHRASE WAS ATTRIBUTED TO ME BUT I THINK IT WAS ORIGINALLY CHARLEY'S SEN NUNN ALSO SAYS THAT HIS NOVEMBER TALKS WITH PROF MOSKOS PLAYED A ROLE IN THE INTERIM SOLUTION HE NEGOTIATED WITH THE WHITE HOUSE IN JANUARY UNDER WHICH THE MILITARY STOPPED ASKING RECRUITS ABOUT SEXUAL ORIENTATION IN THE WAKE OF THOSE NEGOTIATIONS DEFENSE SECRETARY LES ASPIN AWARDED RAND CORP A 13 MILLION CONTRACT TO FASHION A POSSIBLE COMPROMISE RAND PROPOSED NOT ONLY LIFTING THE BAN BUT ALSO LETTING GAYS DECLARE THEIR SEXUAL ORIENTATION AND DELETING ANTISODOMY LANGUAGE IN THE UNIFORM CODE OF MILITARY JUSTICE MILITARY LEADERS REJECTED THE PROPOSALS THAT RAND DELIVERED THIS MONTH AND DON'T ASK DON'T TELL BECAME THE WORKING FRAMEWORK FOR THE COMPROMISE IT IS EXPECTED THAT THE JOINT CHIEFS WHOSE APPROVAL IS CRUCIAL WILL ENDORSE THE PLAN LATER THIS WEEK CLEARING THE WAY FOR THE WHITE HOUSE AND CONGRESS TO SIGN ON PROF MOSKOS CONTENDS THE PLAN RELIEVES THE MILITARY OF SOME NETTLESOME SECONDARY QUESTIONS LIKE HOW TO TREAT HOUSING FOR SAMESEX COMPANIONS OR WHETHER TO TRACK PROMOTION HISTORIES OF GAY OFFICERS TO MAKE SURE DISCRIMINATION HASN'T OCCURRED STILL HE CONTENDS THAT AFTER YEARS OF COSTLY MILITARY INVESTIGATIONS INTO PERSONNEL SUSPECTED OF HOMOSEXUALITY DON'T ASK DON'T TELL' IS A TREMENDOUS CHANGE IT MEANS GAYS DON'T HAVE TO LIE ANYMORE GAY ACTIVISTS DISAGREE CONTENDING IT ALLOWS THEM TO SERVE ONLY IF THEY HIDE THEIR ORIENTATION THE CLOSET ISN'T A COMPROMISE SAYS A STATEMENT ISSUED BY THE WASHINGTONBASED NATIONAL GAY AND LESBIAN TASK FORCE UNDER DON'T ASK DON'T TELL IT SAYS GAY SERVICE MEMBERS WOULD NEED TO LIE OR TELL HALFTRUTHS ABOUT THEIR PARTNERS LIFE HISTORIES AND EVEN WEEKEND PLANS NOR IS IT CERTAIN JUST WHAT WOULD CONSTITUTE A DECLARATION A PHOTO OF A SAMESEX FRIEND POSSESSION OF A HOMOEROTIC MAGAZINE BUT PROF MOSKOS FEELS STRONGLY THAT SILENCE ON SEXUAL ORIENTATION IS FOR THE GOOD IN HIS FORT DRUM TROOP SURVEYS HE DETECTED A NEW POLARIZATION ON HOMOSEXUALS WHILE SOME TROOPS ARE MOVING TOWARD GRUDGING ACCOMMODATION AS MANY AS HALF NOW ARE VOCIFEROUSLY OPPOSED PARTLY BECAUSE THEY FEAR HOMOSEXUALS WILL BECOME A PRIVILEGED GROUP HE SAYS THEY'RE TALKING IN TERMS OF VIOLENCE WHICH WE DIDN'T SEE BEFORE THAT FINDING ARGUES FOR HIS COMPROMISE HE SAYS BECAUSE UNDER IT GAY MEN AND LESBIANS WOULDN'T BE A VISIBLE GROUP IF PROF MOSKOS HAS FOUGHT THE LEFT ON HOMOSEXUALS HE HAS ANTAGONIZED THE RIGHT BY ADVOCATING CIVILIAN NATIONAL SERVICE WHICH HE SEES AS A WAY OF TRANSFERRING THE LESSONS OF THE MILITARY TO THE LARGER US SOCIETY LINKING STUDENT AID TO CIVIC SERVICE HE SAYS WOULD GIVE GI BILL LIKE BENEFITS TO THOSE WHO PROVIDE SUCH NEEDS AS DAY CARE OR AID TO ALZHEIMER'S PATIENTS AFTER HE LAID OUT THOSE IDEAS AT A 1988 MEETING OF THE DEMOCRATIC LEADERSHIP COUNCIL HE RECALLS A MAN QUIZZED HIM FOR 20 MINUTES AND THEN FINALLY INTRODUCED HIMSELF AS ARKANSAS GOV BILL CLINTON FOUR YEARS LATER MR CLINTON MADE NATIONAL SERVICE A PART OF HIS PLATFORM UNLIKE MANY OF THE PRESIDENT'S PROPOSALS A NATIONALSERVICE PROGRAM IS MOVING THROUGH CONGRESS AND MAY BECOME LAW BY SUMMER'S END UNDER THE PLAN APPROVED BY THE HOUSE EDUCATION AND LABOR COMMITTEE LAST WEEK STUDENTS COULD RECEIVE 5000 A YEAR IN EDUCATIONAL BENEFITS IN EXCHANGE FOR WORKING IN EDUCATION ENVIRONMENTAL OR PUBLICSAFETY PROGRAMS THE PLAN HASN'T DRAWN PLAUDITS FROM THE RIGHT I THINK IT'S A BASICALLY IMMORAL PROGRAM AND I THINK IT WON'T WORK SAYS MARTIN ANDERSON A FORMER REAGAN POLICY ADVISER IT'S BASED ON SERVITUDE TO THE STATE BUT MR MOSKOS'S CORE WORK AND HIS PASSIONATE INTEREST INVOLVES ISSUES OF RACE AND MILITARY SERVICE THE ARMY IS THE ONLY PLACE IN THE UNITED STATES WHERE WHITES ARE ROUTINELY BOSSED AROUND BY BLACKS HE SAYS THE MAIN MESSAGE A RACIALLY TROUBLED CIVILIAN SOCIETY CAN DRAW FROM THE MILITARY EXPERIENCE HE SAYS IS THIS FORMULA NO DROPPING OF STANDARDS AND ABSOLUTELY NO DISCRIMINATION BOTH HAVE TO GO TOGETHER ONE WON'T WORK WITHOUT THE OTHER AT FORT DRUM PROF MOSKOS WAS CURIOUS TO KNOW WHAT BLACK SOLDIERS FELT ABOUT THE SOMALI OPERATION THE FIRST US MILITARY MISSION TO BLACK AFRICA WHAT HE FOUND WAS A BITTERNESS AMONG BOTH BLACKS AND WHITES ABOUT THE EXPEDITION WHERE THE MILITARY INTERVENED WITHOUT BEING ASKED BY A GOVERNMENT OR ANY FACTIONAL LEADERS TO ASSIST HUMANITARIAN EFFORTS PROF MOSKOS QUOTES ONE WOMAN WHO WENT WHAT IS THE POINT OF TRYING TO HELP PEOPLE WHO REALLY DON'T WANT YOUR HELP I DIDN'T ENJOY HAVING ROCKS THROWN AT ME THEN FROM A SERGEANT WE TREATED THE SOMALIS BETTER THAN ANY OTHER NATION DID AND THEY TREATED US WORSE EVEN BEFORE HE LEAVES FORT DRUM PROF MOSKOS BEGINS FORMULATING CONCLUSIONS THE STORY OF SOMALIA IS ATTITUDE WAS LOW BUT DISCIPLINE WAS HIGH WHICH MAY BE THE MARK OF A TRUE PROFESSIONAL HE SAYS 9306230009 930623 CLI PULLS OUT OF COAL GROUP WASHINGTON CLI INC PULLED OUT OF THE BITUMINOUS COAL OPERATORS ASSOCIATION A GROUP NOW REPRESENTING LESS THAN A DOZEN COAL COMPANIES IN CONTINUING NEGOTIATIONS WITH THE UNITED MINE WORKERS THE 100 UNION MEMBERS AT CLI WHO HAD BEEN ON STRIKE SINCE MAY 25 HAVE SIGNED AN AGREEMENT EXTENDING THE CURRENT CONTRACT FOR SIX MONTHS AND WILL RETURN TO THEIR JOBS MONDAY THE ACTION WAS PART OF SELECTIVE STRIKES BY MINE WORKERS AGAINST SEVERAL BCOA MEMBER COMPANIES CLI A CLOSELY HELD PITTSBURGH FIRM OPERATES FACILITIES OWNED BY OTHERS IT SAID IT WITHDREW BECAUSE THE PRESENT DAMAGES BEING CAUSED TO ITS CLIENTS AND EMPLOYEES BY THE STRIKE FAR OUTWEIGHS ANY BENEFIT THAT MAY BE DERIVED TO CLI OR ITS CLIENTS FROM A PROLONGED WORK STOPPAGE A BCOA SPOKESMAN SAID THE GROUP WAS STUDYING THE WITHDRAWAL BUT THE MOVE WOULD HAVE NO EFFECT ON THE TALKS 9306230008 930623 WHO'S NEWS FIRST TOP BLACK EXECUTIVE IS APPOINTED AT FLAGSTAR SPARTANBURG SC FLAGSTAR CORP APPOINTED ITS FIRST TOP BLACK EXECUTIVE FOLLOWING CHARGES THAT THE COMPANY'S DENNY'S RESTAURANT CHAIN HAD DISCRIMINATED AGAINST SOME OF ITS BLACK CUSTOMERS THE COMPANY NAMED NORMAN J HILL A PERKINS FAMILY RESTAURANTS VICE PRESIDENT TO THE NEWLY CREATED JOB OF VICE PRESIDENT OF FIELD HUMAN RESOURCES HE IS THE ONLY BLACK OFFICER AMONG THE TOP 26 MANAGERS THE COMPANY SAID EDNA K MORRIS SENIOR VICE PRESIDENT OF HUMAN RESOURCES SAID MR HILL WILL BE RESPONSIBLE FOR EMPLOYEE RECRUITMENT AND EMPLOYEE RELATIONS HE WILL CONCENTRATE ON CAREER DEVELOPMENT AND HIRING THAT WILL BROADEN THE STAFF'S MINORITY REPRESENTATION SHE SAID MR HILL COULDN'T BE REACHED FOR COMMENT FLAGSTAR WAS FORMERLY TW HOLDINGS INC IN MARCH A GROUP OF BLACK DENNY'S CUSTOMERS SUED THE COMPANY IN US DISTRICT COURT IN SAN JOSE CALIF ALLEGING AMONG OTHER THINGS THAT BLACKS IN CALIFORNIA DENNY'S RESTAURANTS WERE REQUIRED TO PREPAY FOR MEALS THE JUSTICE DEPARTMENT LATER SAID IT SUBSTANTIATED THE ALLEGATIONS THE COMPANY SIGNED A CONSENT DECREE IN APRIL THAT AMONG OTHER THINGS REQUIRES IT TO CONDUCT ANTIBIAS PROGRAMS FOR WORKERS 9306230007 930623 RAYTHEON GETS AIR FORCE JOB LEXINGTON MASS RAYTHEON CO SAID IT WON A 74 MILLION US AIR FORCE CONTRACT TO PRODUCE 20 COMMAND POST TERMINALS FOR THE MILSTAR SATELLITE COMMUNICATIONS SYSTEM RAYTHEON SAID IT WILL BUILD THE SATELLITE TERMINALS AT ITS EQUIPMENT DIVISION MANUFACTURING PLANT IN WALTHAM MASS OVER THE NEXT THREE AND A HALF YEARS MILSTAR OR MILITARY STRATEGIC AND TACTICAL RELAY SYSTEM IS DESIGNED TO PROVIDE SECURE JAMRESISTANT COMMUNICATIONS FOR US MILITARY FORCES WORLDWIDE RAYTHEON A DIVERSIFIED TECHNOLOGY COMPANY SAID IT PROVIDES MILSTAR COMMUNICATIONS TERMINALS FOR THE ARMY NAVY AND AIR FORCE 9306230006 930623 GREYHOUND TRAFFIC UP 64 DALLAS GREYHOUND LINES INC SAID ITS PASSENGER TRAFFIC GREW 64 IN MAY TO 457 MILLION REVENUE PASSENGER MILES FROM 4294 MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER TRAVELING ONE MILE THE BUS COMPANY ALSO REPORTED THAT IT FILLED 528 OF ITS SEATS UP FROM THE 509 REPORTED IN THE YEAREARLIER MONTH GREYHOUND ATTRIBUTED THE GAINS TO LOWER PRICING IT ALSO SAID THAT IT ENDED DISCOUNT PROGRAMS BUT STILL EXPECTS AN IMPROVEMENT FROM THE YEARAGO FIGURES FOR JUNE BASED ON INCREASED TRAFFIC SO FAR 9306230005 930623 WHO'S NEWS SUNSHINEJR STORES INC SUNSHINEJR STORES INC PANAMA CITY FLA R M RON SHOUSE WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS CONVENIENCESTORE CHAIN MR SHOUSE 51 YEARS OLD HAD BEEN A REGIONAL DIRECTOR IN OHIO FOR CONVENIENT FOOD MARTS INC HE SUCCEEDS LENARD J MILLER 52 WHO IS NO LONGER ASSOCIATED WITH THE COMPANY ACCORDING TO SUNSHINEJR OFFICIALS THEY WOULDN'T ELABORATE 9306230004 930623 INTEGRATED WASTE SERVICES BUFFALO NY INTEGRATED WASTE SERVICES INC SAID IT HAD REPLACED MOST OF ITS DEBT COMING DUE THIS YEAR WITH A 26 MILLION REFINANCING THE NEW DEBT STRUCTURE REDUCES INTEREST IMPROVES THE COMPANY'S WORKING CAPITAL BY ABOUT 2 MILLION AND MAKES AVAILABLE 5 MILLION FOR NEW CAPITAL EQUIPMENT EXPENDITURES THE ONLY PREVIOUS LONGTERM DEBT UNAFFECTED BY THE RESTRUCTURING IS 23 MILLION IN MORTGAGES THE NEW DEBT EXPECTED TO BE CLOSED AND FUNDED BY THE END OF THIS MONTH IS PROVIDED SEPARATELY BY MARINE MIDLAND BANK CIT GROUP AND HCFS BUSINESS EQUIPMENT CORP 9306230003 930623 TUESDAY'S MARKETS STOCKS FALL BONDS RISE DOLLAR IS UP POOR PROFIT FORECASTS SEND SHARES LOWER RETAILER ISSUES DROP BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A SERIES OF POOR EARNINGS FORECASTS DRAGGED STOCK PRICES LOWER BOND PRICES EDGED HIGHER AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE SLUMPED 1329 POINTS TO 349753 STANDARD & POOR'S 500STOCK INDEX FELL 029 TO 44593 AND THE NASDAQ COMPOSITE INDEX DECLINED 197 TO 68677 TRADING BEGAN ON A WEAK NOTE AFTER KMART SAID IT EXPECTS ITS QUARTERLY EARNINGS TO BE BELOW LAST YEAR'S LEVEL THE NEWS KNOCKED KMART DOWN 1 1/2 TO 20 1/8 PULLING OTHER RETAILERS ALONG SEARS FELL 1 TO 53 1/4 AND WOOLWORTH DROPPED 3/4 TO 27 5/8 BUT COMPANIES WHOSE PROFIT OUTLOOK APPEARS BRIGHT WERE REWARDED WITH STOCK PRICE GAINS JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ SAID THE PROFIT PICTURE FOR THE STEEL INDUSTRY IMPROVED AFTER THE COMMERCE DEPARTMENT LEVIED ANTIDUMPING PENALTIES ON STEEL FROM A NUMBER OF COUNTRIES STEEL STOCKS ROSE SIMILARLY PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES SAID BANK STOCKS JUMPED ON GROWING PERCEPTIONS THAT THE INDUSTRY'S EARNINGS WILL BE STRONG MR CANELO IS UPBEAT ABOUT THE COMING ROUND OF PROFIT REPORTS MY GUESS IS EARNINGS WILL COME IN VERY WELL BECAUSE THE SECOND QUARTER HAS BEEN STRONGER ECONOMICALLY THAN THE FIRST HE SAID MR MCALINDEN SAID THE MARKET'S SLUMP IS LAYING THE GROUNDWORK FOR A STRONG SUMMER RALLY THAT WILL TAKE THE INDUSTRIAL AVERAGE UP TO 3700 IN THE NEXT TWO MONTHS AMONG HIS CHIEF REASONS FOR THE CLIMB ARE THE CONTINUED HESITANCE OF THE FEDERAL RESERVE BOARD TO BOOST SHORTTERM INTEREST RATES AND A RECORD LEVEL OF SHORT INTEREST IN STOCKS A HIGH LEVEL OF SHORT INTEREST RAISES THE PROSPECT THAT INVESTORS WILL BE FORCED TO BUY STOCKS TO COVER THOSE SHORT POSITIONS IF PRICES BEGIN TO RISE MR MCALINDEN ALSO EXPECTS GOLD AND SILVER PRICES TO REMAIN CALM FOR A WHILE PROVIDING SUPPORT FOR THE BOND MARKET STRENGTH IN THE BOND MARKET WILL FURTHER AID THE STOCK MARKET YOU DON'T NEED TO MAKE NEW LOWS ON LONG RATES TO MAKE STOCKS GO UP MR MCALINDEN SAID YOU JUST NEED BONDS TO HOLD ONTO THEIR GAINS WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 034 TO 10364 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2576 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 959 ISSUES FELL AND 949 ROSE BOND PRICES ROSE THE TREASURY'S BENCHMARK 30YEAR ISSUE GAINED LESS THAN 1/8 POINT OR LESS THAN 125 FOR EACH 1000 FACE AMOUNT TO YIELD 677 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16965 MARKS AND 11085 YEN COMPARED WITH 16883 MARKS AND 11060 YEN MONDAY 9306230002 930623 ARROW ELECTRONICS ACQUISITIONS MELVILLE N Y ARROW ELECTRONICS INC SAID IT AGREED IN PRINCIPAL TO PURCHASE ONE EUROPEAN ELECTRONICS DISTRIBUTOR AND INVEST IN TWO OTHERS ARROW SAID IT PLANS TO ACQUIRE MICROPROCESSOR & MEMORY DISTRIBUTION LTD READING ENGLAND A DISTRIBUTOR OF HIGH TECHNOLOGY SEMICONDUCTOR PRODUCTS IT WILL MAKE A MAJORITY INVESTMENT IN AMITRON SA AND ATD GROUP BOTH MADRIDBASED ELECTRONIC COMPONENTS DISTRIBUTORS THE THREE COMPANIES ARE EXPECTED TO ADD MORE THAN 75 MILLION A YEAR OF REVENUE BRINGING REVENUE OF ARROW'S EUROPEAN SUBSIDIARIES AND AFFILIATES TO ABOUT 750 MILLION 9306230001 930623 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH COMPANY AGREES TO BUY BARPHONE FOR 47 MILLION EXTENDING ITS REACH INTO THE EUROPEAN TELEPHONE MARKET AMERICAN TELEPHONE & TELEGRAPH CO AGREED TO PURCHASE BARPHONE SA A SMALL FRENCH TELEPHONE EQUIPMENT SUPPLIER AT&T IS OFFERING 1458 FRANCS 26 A SHARE PUTTING BARPHONE'S VALUE AT ABOUT 47 MILLION SAID BRUCE SANDERSON AT&T'S DIRECTOR OF INTERNATIONAL BUSINESS DEVELOPMENT THE DEAL IS EXPECTED TO BE COMPLETED IN THREE MONTHS THIS IS PART OF OUR GLOBAL EXPANSION PROGRAM HE SAID WE'RE HAVING DISCUSSIONS WITH OTHER COMPANIES FOR STRATEGIC ALLIANCES ACQUISITIONS AND JOINT VENTURES BARPHONE IN PARIS WHICH SELLS PHONE SYSTEMS TO SMALL AND MEDIUMSIZED BUSINESSES IN FRANCE AND OTHER EUROPEAN MARKETS HAD REVENUE OF 60 MILLION IN 1992 AND EMPLOYS 450 PEOPLE AT&T SAID IT PLANS TO ACQUIRE BETWEEN 748 AND 100 OF BARPHONE'S SHARES ABOUT 52 OF THAT STOCK WILL COME FROM AN INVESTOR GROUP LED BY BARPHONE FOUNDER AND CHAIRMAN MICHEL APCHIN 9306220159 930622 WORLD STOCK MARKETS TOKYO STOCKS PLUNGE IN WAKE OF POLITICAL CRISIS BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE POLITICAL TUMULT IN JAPAN COULD SPELL MONTHS OF UNCERTAINTY AND LOWER SHARE PRICES ON THE TOKYO STOCK MARKET STOCK PRICES PLUNGED MONDAY IN THE WAKE OF PARLIAMENT'S VOTE OF NO CONFIDENCE IN JAPAN'S RULING LIBERAL DEMOCRATIC PARTY ON TUESDAY THE NIKKEI ROSE 13342 POINTS TO CLOSE THE MORNING SESSION AT 1934585 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 340 MILLION SHARES UP FROM 25364 MILLION SHARES FRIDAY LOSERS SWAMPED GAINERS 104452 THE TOKYO STOCK PRICE INDEX OF ALL FIRSTSECTION ISSUES PLUMMETED 5604 POINTS OR 35 TO 153128 THERE WERE ALMOST NO PURCHASE ORDERS OUT THERE SAYS OSAMU YASAKA DEPUTY GENERAL MANAGER OF EQUITY TRADING AT NIKKO SECURITIES CO HE THINKS THE MARKET WILL LEVEL OFF AT ABOUT 19000 AND SLOWLY RECOVER DURING THE NEXT FEW MONTHS BUT SOME OTHERS SAY THE DECLINE COULD BE DEEPER TETSUO TSUKIMURA MANAGING DIRECTOR OF SMITH BARNEY HARRIS UPHAM INTERNATIONAL INC THINKS THE NIKKEI AVERAGE MAY LOSE SEVERAL THOUSAND POINTS BEFORE IT EVENTUALLY RECOVERS THE LDP IS NOW THE OPPOSITION PARTY CONTENDS MR TSUKIMURA OVER THE SHORT TERM THAT'S BAD FOR THE MARKET THE NIKKEI HAS LOST 1185 POINTS SINCE TALK OF INTRODUCING A NOCONFIDENCE MOTION SURFACED LAST TUESDAY AND 1864 POINTS FROM ITS JUNE 3 PEAK THE POLITICAL UPHEAVAL RESULTED FROM THE SCANDAL PLAGUED LDP'S FAILURE TO ENACT POLITICAL REFORM MEASURES TRADERS ARE BETTING THAT A COALITION OF OPPOSITION PARTIES AND LDP DEFECTORS WILL EVENTUALLY RUN JAPAN AND THAT'S HOW THEY PLAN TO PLAY THE ALREADY FICKLE TOKYO STOCK MARKET FOLLOWING FRIDAY'S NOCONFIDENCE VOTE OF COURSE ANYTHING COULD HAPPEN IN JAPANESE POLITICS AND THE LDP WHICH OVERSAW JAPAN'S POSTWAR ECONOMIC MIRACLE COULD COME BOUNCING BACK IT HAS DONE SO AFTER MANY TEMPORARY SETBACKS IN THE PAST AND CLEARLY A QUICK LDP RECOVERY COULD EASE INVESTOR CONCERNS AND LIFT SHARE PRICES BUT RIGHTLY OR WRONGLY THE MARKET IS BETTING THE LDP WILL BE TOPPLED THIS TIME TRADERS WORRY THAT AS A RESULT THE NATION COULD BE WRACKED BY POLITICAL GRIDLOCK AND THAT CONTINUING WEAKNESS IN THE BANKING SECTOR AND OTHER INDUSTRIES COULD UNDERMINE ITS ECONOMIC HEALTH THERE ARE ALSO FEARS THAT LESS GOVERNMENT MONEY MIGHT BE AVAILABLE TO PROP UP STOCK PRICES IF THE MARKET GOES INTO A TAILSPIN DURING THE PAST 10 MONTHS THE GOVERNMENT HAS FREQUENTLY STEPPED INTO THE MARKET TO SUPPORT PRICES BY BUYING STOCK PEOPLE CAN'T REALLY GET THEIR BRAINS AROUND THE IDEA THAT THIS IS THE END OF AN ERA SAYS PETER TASKER STRATEGIST AT KLEINWORT BENSON INTERNATIONAL INC HE SAYS HE THINKS THE MARKET WILL REMAIN VOLATILE AT LEAST UNTIL A NEW POLITICAL ORDER IS ESTABLISHED IT'S LOOKING LIKE SEVERAL MONTHS OF CORRECTION EVEN IF THE BIG SELLING STOPS TOMORROW HE ADDS STOCKS THAT ARE CLOSELY ASSOCIATED WITH THE RULING PARTY WERE AMONG THE CHIEF CASUALTIES MONDAY NIPPON TELEGRAPH & TELEPHONE WHICH LED THE MARKET IN THIS SPRING'S RALLY FELL 79000 YEN TO 831000 YEN 7580 NTT THE MOST WIDELY HELD STOCK IN JAPAN HAD BEEN EXPECTED TO BENEFIT FROM DEREGULATORY STEPS AND GOVERNMENT SPENDING TO STIMULATE THE ECONOMY COMPUTER MAKER NEC CORP ANOTHER COMPANY THAT WOULD BENEFIT FROM GOVERNMENT SPENDING WAS OFF 63 YEN AT 907 YEN MANY TRADERS WERE HOPING FOR ANOTHER ROUND OF GOVERNMENT STIMULUS SPENDING THIS FALL THAT COULD FAIL TO APPEAR IF PARLIAMENT IS SIDETRACKED BY POLITICAL INFIGHTING THERE WERE ALSO WORRIES THAT POLITICAL TURMOIL COULD DELAY ANY FURTHER CUTS IN INTEREST RATES BY THE BANK OF JAPAN THE COUNTRY'S CENTRAL BANK JAPANESE BANKS UTILITIES AND BROKERAGE FIRMS WHICH WOULD BENEFIT MOST FROM A RATE CUT WERE AMONG THE BIG LOSERS MONDAY INVESTORS WERE LOOKING FOR A RATE CUT SAYS MR YASAKA OF NIKKO SECURITIES NOW EVERYONE THINKS IT WILL BE DELAYED IF THE MARKET CONTINUES TO FALL TRADERS EXPECT GOVERNMENT BUREAUCRATS TO RESTART THEIR VIGOROUS STOCKBUYING PROGRAM TO SUPPORT SHARE PRICES ANALYSTS SAY GOVERNMENT OFFICIALS HAVE AT LEAST 15 TRILLION YEN 1368 BILLION LEFT IN THEIR WAR CHEST TO INVEST IN THE MARKET BUT TRADERS SAY THAT IF A WORRIED PUBLIC DUMPS ITS NTT SHARES OR IF FOREIGN INVESTORS SHUN A POLITIALLY UNSTABLE JAPAN THEN THE GOVERNMENT MONEY WON'T BE ENOUGH TO STEM A MARKET DECLINE AT THAT POINT MORE FUNDS WOULD HAVE TO BE APPROVED TO PROP UP SHARE PRICES PROVIDED THERE IS THE POLITICAL WILL TO SECURE THE MONEY IF PEOPLE WORRY ABOUT THE ECONOMY THEY'LL OVERWHELM ANY GOVERNMENT STOCK BUYING WITH SELL ORDERS SAYS JOHN ZWAANSTRA FUND MANAGER AT JARDINE FLEMING INVESTMENT ADVISORS LTD THIS MARKET IS PRICED TOO HIGH FOR ANYTHING BUT A STRONG RECOVERY DESPITE MONDAY'S PERVASIVE PESSIMISM A FEW IMPORTANT STOCKS DID WELL THESE INCLUDED BIG ELECTRONICS EXPORTERS SUCH AS SONY AND MATSUSHITA ELECTRIC INDUSTRIAL WHICH BENEFITED FROM A WEAKENING YEN THE JAPANESE CURRENCY HAS FALLEN ABOUT FIVE YEN AGAINST THE DOLLAR SINCE THE LDP'S TROUBLES BEGAN LAST TUESDAY A WEAKER YEN BENEFITS EXPORTERS BY MAKING THEIR PRODUCTS RELATIVELY LESS EXPENSIVE ABROAD HONG KONG STOCKS PLUNGED 27 ON POLITICAL WORRIES BUT LONDON PRICES ADVANCED SMARTLY IN REACTION TO LOWER EUROPEAN INTEREST RATES AND INCREASED OPTIMISM ABOUT THE STRENGTH OF BRITAIN'S ECONOMIC RECOVERY IN PARIS A FRENCH RATE REDUCTION SENT STOCKS UP SHARPLY FRANKFURT SHARES ROSE SLIGHTLY REBOUNDING FROM LOWS CAUSED BY AGGRESSIVE SELLING OF SEPTEMBER FUTURES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10330 DOWN 123 REFLECTING A DROP IN ASIA/PACIFIC MARKETS AN INCREASE IN THE AMERICAS AND A FLAT PERFORMANCE IN EUROPE ENTERTAINMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 14347 UP 247 OR 18 WITH THORN EMI OF BRITAIN POSTING A 23 GAIN IN ITS LOCAL CURRENCY FOOTWEAR STOCKS TRAILED AT 9139 DOWN 718 OR 73 WITH NIKE OF THE US SLIDING 14 IN LOCAL CURRENCY IN HONG KONG THE HANG SENG INDEX CLOSED AT ITS INTRADAY LOW OF 700358 OFF 19717 POINTS THE MARKET HAS SKIDDED ALMOST 6 FROM ITS RECORD HIGH OF 744724 SET MAY 27 THE BLUECHIP INDEX NOSEDIVED THROUGH A PERCEIVED SUPPORT LEVEL OF 7100 AS SELLING BY FOREIGN INVESTORS CONTINUED BUYING INTEREST SUBSIDED IN MORNING TRADING AS PARTICIPANTS AWAITED THE FIRST MEETING SINCE DECEMBER OF THE SINOBRITISH JOINT LIAISON GROUP OVERSEEING THE COLONY'S TRANSFER TO BEIJING IN 1997 THE ABSENCE OF ANY REPORTED PROGRESS FOLLOWING THE TALKS WEIGHED THE MARKET DOWN FURTHER IN THE AFTERNOON SESSION AND THE PROSPECT OF THE SIXTH ROUND OF DISCUSSIONS OF HONG KONG'S POLITICAL FUTURE BETWEEN CHINA AND BRITAIN ON WEDNESDAY ALSO WAS CLOUDED BY BEIJING'S LATEST CRITICISM ACCUSING LONDON OF BLOCKING A SUCCESSFUL CONCLUSION TO THE TALKS BY STICKING TO HONG KONG GOV CHRIS PATTEN'S DISPUTED PROPOSAL TO BROADEN DEMOCRATIC PARTICIPATION IN THE COLONY HONG KONG INVESTORS ALSO WERE CONCERNED ABOUT CHINA'S ECONOMY WHICH IS CLOSELY LINKED TO THAT IN THE TERRITORY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX GAINED 240 POINTS TO 29034 TOPPING A PERCEIVED BARRIER OF 2900 THE FT 30STOCK INDEX RALLIED 221 POINTS TO 22746 VOLUME WAS 5704 MILLION SHARES COMPARED WITH 7125 MILLION SHARES IN THE PREVIOUS SESSION THE ACROSSTHEBOARD ADVANCE IN LONDON WAS SPARKED BY THE FRENCH CENTRAL BANK'S TRIMMING ITS INTEREST RATES FOR THE NINTH TIME SINCE THE FRENCH GOVERNMENT TOOK OFFICE IN APRIL TAKING RATES THERE BELOW THOSE IN GERMANY THIS PROMPTED RATE CUTS BY SOME OTHER EUROPEAN CENTRAL BANKS AND IGNITED STOCKS IN LONDON STOCKS' GAINS WERE UNDERPINNED BY AN UPTURN IN CONFIDENCE ABOUT THE STRENGTH OF THE BRITISH RECOVERY WITH INFLATION RUNNING SLOWLY FIRMNESS IN THE BOND MARKET ALSO HELPED TO CHEER EQUITY INVESTORS WHO HAVE FEARED COMPETITION FOR FUNDS FROM THE GILT OR GOVERNMENTBOND MARKET WHICH IS COPING WITH A HUGE FUNDING REQUIREMENT IN BRITAIN'S CURRENT FISCAL YEAR BUT WITH HALF THE YEAR OVER THE EQUITY MARKET HAS PROVED RESILIENT AGAINST NOT ONLY A HUGE GILT SUPPLY BUT ALSO A LARGERTHANEXPECTED VOLUME OF NEW STOCK OFFERINGS IN FRANKFURT THE DAX 30STOCK INDEX ROSE 292 POINTS TO 168982 NEAR THE INTRADAY HIGH OF 169085 AFTER HAVING DROPPED TO A TRADING LOW OF 167610 SOME TRADERS BELIEVED THE MARKET WOULD FALL AND SOLD BLUECHIP INDUSTRIAL AND AUTO SHARES BUT OVERALL PRICES STAYED FIRM AND THE SECTORS REBOUNDED IN PARIS AFTER A STRONG MORNING SESSION THE FRENCH INTERESTRATE CUT PROPELLED STOCKS UP ABOUT 1 WITH FOREIGN INVESTORS IN THE FOREFRONT OF BUYERS THE BANK OF FRANCE CUT THE INTERVENTION RATE TO 7 FROM 725 AND THE 5TO10DAY SECURITIES REPURCHASE RATE TO 8 FROM 825 THE REDUCTIONS WERE NEEDED TO MAKE ATTRACTIVE A BOND ISSUE THAT IS TO GIVE THE GOVERNMENT ADVANCE USE OF THE CASH IT EXPECTS TO RAISE FROM PRIVATIZATIONS LATER THIS YEAR AMSTERDAM STOCKS CLIMBED BROADLY ON A FIRMER DOLLAR AND INTERESTRATE REDUCTIONS IN THE NETHERLANDS AND OTHER EUROPEAN COUNTRIES THE DUTCH TRIMMING OF THE MONEY MARKET INTERVENTION RATE SET THE STAGE FOR A BROADER EASING NEXT MONTH OF THE CENTRAL BANK'S INTEREST RATES BUT MILAN SHARES ENDED LOWER AFTER AN INITIAL BURST OF POSITIVE SENTIMENT RAN OUT OF STEAM THE MILAN MARKET WAS BOOSTED INITIALLY BY VICTORIES IN WEEKEND MAYORAL ELECTIONS IN SEVERAL ITALIAN CITIES BY THE NORTHERN LEAGUE PARTY OVER MORE LEFTWING OPPONENTS AND BY A MANAGEMENT CHANGE AT THE FINANCIALLY STRUGGLING AGROINDUSTRIAL AND ENERGY COMPANY FERRUZZI FINANZIARIA BUT INVESTORS TOOK A MORE CAUTIOUS APPROACH AMID UNCERTAINTIES ABOUT POTENTIAL DEVELOPMENTS IN MADRID PRICES SLIPPED ON PROFITTAKING FOLLOWING A RALLY LATE LAST WEEK BUT VOLUME WAS LIGHT INDICATING AN UNDERLYING BULLISH TONE STOCKHOLM EQUITIES FELL IN LACKLUSTER TRADING WITH BANKING AND PHARMACEUTICAL ISSUES RETREATING AND BLUECHIP EXPORTERS ADVANCING AIDED BY A STRONGER DOLLAR ZURICH PRICES AFTER DRIFTING LOWER ROSE ON BUYING OF DOLLARSENSITIVE MULTINATIONAL INDUSTRIALS SPURRED BY THE STRENGTH OF THE US CURRENCY IN SYDNEY SHARE PRICES CLOSED MOSTLY LOWER IN THIN VOLUME THOUGH THE MARKET WAS CONSIDERED TO HAVE HELD UP WELL CONSIDERING THE DROPS IN TOKYO AND HONG KONG AND FRIDAY'S DECLINE IN NEW YORK 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 9306220158 930622 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY KEVIN G SALWEN THE ADMINISTRATION'S PLAN FOR THE NONCOLLEGEBOUND BEGINS TO TAKE SHAPE THREEQUARTERS OF HIGH SCHOOLERS DON'T RECEIVE A FOURYEAR COLLEGE DEGREE THE LABOR DEPARTMENT SAYS A THIRD OF AMERICANS BY AGE 30 HAVEN'T HELD ANY JOB FOR MORE THAN A YEAR SO THE LABOR AND EDUCATION DEPARTMENTS ARE PIECING TOGETHER A PLAN FOR PRESENTATION TO CONGRESS THIS SUMMER THE US WOULD GIVE MONEY TO STATES AND COMMUNITIES TO LINK SCHOOLS BUSINESSES AND GOVERNMENTS IN NEW CURRICULUMS TIED TO WORK GOVERNMENT OFFICIALS ENVISION SCHOOLS LETTING BUSINESS PLAY A BIGGER ROLE AND EMPLOYERS OFFERING MORE LEARNING GRADUATES WOULD GET ALONG WITH HIGHSCHOOL DIPLOMAS CERTIFICATES SHOWING CERTAIN OCCUPATIONAL SKILLS ALL 50 STATES ARE EXPECTED TO GET FIVEYEAR GRANTS BUT MOST OF THE 270 MILLION PROPOSED BY THE ADMINISTRATION FOR 1994 WOULD GO TO COMMUNITIES WITH THE BEST PROPOSALS THE AGENCIES ARE STILL WRESTLING WITH WHETHER TO LET PRIVATE SCHOOLS GET FEDERAL FUNDS TO BE PART OF THE PROGRAM IT'S BACK TO SCHOOL FOR AUTO WORKERS THE STEREOTYPE MAY PORTRAY AUTO WORKERS AS HIGHSCHOOL EDUCATED BUT AN INCREASING NUMBER OF BIG THREE LINE WORKERS SPORT COLLEGE DEGREES ALL THREE COMPANIES AND THE UNITED AUTO WORKERS PAY COLLEGE TUITION FOR UNION MEMBERS ONEFIFTH OF ALL FORD WORKERS HAVE TAKEN COLLEGE COURSES AND SOME 1800 HOLD FOURYEAR DEGREES AT GM 8789 WORKERS RECEIVED 77 MILLION LAST YEAR IN TUITION PAYMENTS FOR COLLEGE COURSES ONEFIFTH OF THE 4300 HOURLY WORKERS AT GM'S JANESVILLE WIS ASSEMBLY PLANT USE THE TUITION PROGRAM FOR COLLEGE ADULT EDUCATION AND TRADE AND BUSINESS SCHOOL SEVERAL WORKERS AT THE PLANT ARE PURSUING NURSING DEGREES ONE A LAW DEGREE DENISE SATHER LAST MONTH RECEIVED A MASTER'S IN EDUCATION FROM THE UNIVERSITY OF WISCONSIN AT WHITEWATER NOW SHE IS LOOKING FOR A WHITECOLLAR JOB IN TRAINING OR COUNSELING AT GM COMPANIES FUME OVER THE NLRB'S DECISIONS ON WORKERMANAGEMENT TEAMS THE AGENCY FORCED DUPONT TO DISBAND ITS SAFETY AND FITNESS TEAMS CONTENDING THAT MANAGEMENT ILLEGALLY SET UP AND RAN THEM TO SIDESTEP THE UNION THE RULING IS A HANDICAP SAYS NYNEX SPOKESMAN MARK GOMEZ BRIAN BEAUDIN OF THE CONNECTICUT BUSINESS & INDUSTRY ASSOCIATION COMPLAINS THE DECISION WAS BASED ON A 1935 LAW INTERPRETED WITH A 1935 MINDSET HE SAYS IT MAY OPEN THE DOOR FOR DISGRUNTLED EMPLOYEES TO DISBAND THE TEAMS BUT OTHER COMPANIES SEE PLUSES IN THE RULING'S GUIDELINES FOR SETTING UP LEGAL COMMITTEES BOSTON EDISON'S DIRECTOR OF EMPLOYEE RELATIONS JAMES DILLON SAYS THE CASE CONFIRMS WHAT WE DO POLAROID WHICH HAS HAD LABORLAW PROBLEMS IN THE PAST SAYS IT IS REASSURED BY THE DUPONT DECISION SEVERAL COMPANIES SAY THEY WILL BE MORE CAREFUL IN OPERATING THEIR TEAMS ARE COMPANIES GOING TO STOP TAKING FEEDBACK FROM THEIR EMPLOYEES ASKS A ROTOROOTER SPOKESMAN THAT WOULD BE A MISTAKE OK BACK UP THE LLAMA THE FURRY ANIMAL IS JUST ONE OF THE ODDITIES EXECUTIVES GOT MOVERS TO HAUL IN CORPORATE RELOCATIONS SAYS RUNZHEIMER INTERNATIONAL AMONG THE THINGS ALLOWED A WORLD WAR II TANK AND A DEAD DOG THE OWNER ASKED MOVERS TO DIG UP FROM THE BACKYARD ITEMS REQUESTED BUT DENIED 220 POUNDS OF FROZEN SHRIMP A HERD OF SHEEP AND FOUR TARANTULAS SOLIDARITY SURGE UNIONS WON HALF OF REPRESENTATION ELECTIONS LAST YEAR THE HIGHEST RATE SINCE 1984 AN ANALYSIS BY THE BUREAU OF NATIONAL AFFAIRS SHOWS THERE WERE 2712 ELECTIONS HELD IN 1992 DOWN 10 FROM THE YEAR BEFORE AS A RESULT UNIONS GAINED 69113 NEW BARGAININGUNIT MEMBERS ALTHOUGH THEY LOST 19245 MEMBERS THROUGH DECERTIFICATIONS WORKERS' COMP COSTS BECOME INCREASINGLY IMPORTANT IN DECISIONS ABOUT WHERE TO LOCATE A BUSINESS IN A SURVEY BY CONSULTANT TOWERS PERRIN 35 OF COMPANIES SAID THE COST OF A STATE'S WORKERS' COMPENSATION SYSTEM INFLUENCED SITE DECISIONS MOST AFFECTED ARE MANUFACTURERS TWOTHIRDS OF WHOM SAID THEY CONSIDERED SUCH COSTS BUSINESS SCHOOLS TRAIN FACTORY LEADERS BUT MONEY LURES GRADS ELSEWHERE A HALFDOZEN UNIVERSITIES MIX MANUFACTURING AND MANAGEMENT IN BUSINESS EDUCATION PROGRAMS AND OTHERS ARE STARTING SIMILAR PROGRAMS BUT MANY GRADUATES LAND AT CONSULTING FIRMS NOT MANUFACTURERS NEARLY TWOFIFTHS OF NORTHWESTERN'S 58MEMBER CLASS ACCEPTED JOBS WITH CONSULTANTS ONLY 20 TOOK FACTORY OPERATIONS JOBS HALF OF LAST YEAR'S NUMBER MONEY IS A MAJOR LURE NORTHWESTERN GRADS GOING WITH CONSULTANTS AVERAGE 75000 COMPARED WITH 55000 FOR THOSE TAKING MANUFACTURING JOBS OFFERS FROM CONSULTANTS SURPASS THOSE FROM MANUFACTURERS BY SO MUCH THAT PEOPLE THINK THEY'RE REALLY GETTING RICH SAYS JERRY COHEN DEAN OF NORTHWESTERN'S ENGINEERING SCHOOL THE BACKLASH AFTER 35 OF MIT'S FIRST BATCH OF GRADS WENT TO CONSULTANTS THE SCHOOL STRESSED MANUFACTURING OF THIS YEAR'S 40MEMBER CLASS 88 ACCEPTED FACTORYRELATED JOBS AND ONLY ONE HEADED TO A CONSULTING FIRM THE CHECKOFF IN AN NLRB SETTLEMENT CATERPILLAR IS FORCED TO POST A NOTICE AT ITS AURORA ILL PLANT THAT IT WON'T ASSIGN UNITED AUTO WORKERS STEWARDS TO THE DUTY OF CLEANING WASHROOMS URINALS OR TOILETS GOOD THING SHE DOESN'T DO DISABILITY CITIBANK'S STAFFER IN CHARGE OF OVERSEAS BILLINGS IS ROSE ANN BILLINGS 9306220157 930622 WHO'S NEWS DISSIDENT DIRECTOR RESIGNS FROM KASLER OVER PLANNED MERGER HIGHLAND CALIF KASLER CORP SAID DISSIDENT DIRECTOR PATRICK A ORTIZ HAS RESIGNED FROM THE BOARD REDUCING ITS SIZE TO SEVEN MEMBERS MR ORTIZ 44 YEARS OLD SAID IN AN INTERVIEW THAT HE RESIGNED BECAUSE HE OPPOSES A PROPOSED MERGER WITH WASHINGTON CONTRACTORS GROUP INC A MINING AND CONSTRUCTION COMPANY MR ORTIZ WHOSE RESIGNATION WAS EFFECTIVE IMMEDIATELY WILL NOT BE REPLACED THE COMPANY SAID MR ORTIZ WASN'T ON A PROPOSED SLATE OF DIRECTORS FOR THE MERGED COMPANY JL FELLER KASLER'S CHAIRMAN AND CHIEF EXECUTIVE SAID MR ORTIZ HAD REVERSED HIS STANCE ON THE MERGER SINCE A FEB 15 BOARD MEETING AT WHICH HE VOTED IN FAVOR OF A PRELIMINARY AGREEMENT MR ORTIZ AND TWO OTHER DIRECTORS HAVE SINCE VOTED AGAINST THE PROPOSAL CHARGING THAT IT WILL NOT GIVE KASLER SHAREHOLDERS A BIG ENOUGH STAKE IN THE NEW COMPANY UNDER THE MERGER DENNIS R WASHINGTON OWNER OF WASHINGTON CONTRACTORS WOULD OWN 66 OF THE NEW COMPANY WITH THE MINORITY INTEREST HELD BY EXISTING KASLER SHAREHOLDERS SHAREHOLDERS OF KASLER A HIGHWAYCONSTRUCTION COMPANY WILL VOTE JULY 9 ON THE PROPOSAL MR ORTIZ ALONG WITH HIS WIFE JILL AND THE KASLER FAMILY TRUST CONTROLS 94 OF THE COMPANY'S STOCK HE IS THE SONINLAW OF JEFF KASLER WHO RAN THE COMPANY FOR MANY YEARS SEPARATELY MR FELLER COMMENTED ON KASLER'S STOCK PRICE SAYING THAT IT REFLECTS MANY FACTORS INCLUDING THE CURRENT DOWNWARD PRICE MOVEMENT OF COMPANIES IN THE HEAVYCONSTRUCTION GROUP AND THE COMPANY'S LOWER BACKLOG REVENUE AND EARNINGS THAN IN PREVIOUS YEARS KASLER SHARES HAVE FALLEN FROM 875 A SHARE IN EARLY MARCH JUST BEFORE THE MERGER PROPOSAL WAS ANNOUNCED IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KASLER CLOSED AT 7625 UP 375 CENTS 9306220156 930622 BUSINESS BRIEF GERAGHTY & MILLER INC SECONDQUARTER NET TO FALL DUE TO CHARGE FOR CUTBACK GERAGHTY & MILLER INC SAID IT EXPECTS TO REPORT LOWER SECONDQUARTER EARNINGS AFTER A CHARGE FOR A RECENTLY COMPLETED STAFF REDUCTION THE PLAINVIEW NY ENVIRONMENTAL SERVICES COMPANY SAID EARNINGS SHOULD BE ABOUT 12 TO 13 CENTS A SHARE AFTER A CHARGE OF 400000 OR FOUR CENTS A SHARE FROM THE REDUCTION OF 60 EMPLOYEES REVENUE EXCLUDING REVENUE OF ITS RECENTLY ACQUIRED ACUREX ENVIRONMENTAL UNIT IS EXPECTED TO BE SLIGHTLY BELOW ITS 1992 SECONDQUARTER FIGURE OF 33 MILLION NET REVENUE INCLUDING ACUREX IS EXPECTED TO BE 14 TO 15 ABOVE THE 1992 SECOND QUARTER'S NET INCOME WAS 1057000 OR 18 CENTS A SHARE IN THE 1992 SECOND QUARTER THE COMPANY SAID THE REDUCTION IN WORK FORCE IS BECAUSE OF CONTINUING SOFT MARKET CONDITIONS AS A RESULT OF THE CUT THE STAFFING LEVEL WILL BE ABOUT 1245 AT JUNE 30 IT SAID 9306220155 930622 BUSINESS BRIEF BOSTON EDISON CO PLAN FOR UNREGULATED UNIT IS CLEARED BY MASSACHUSETTS BOSTON EDISON CO SAID THE MASSACHUSETTS DEPARTMENT OF PUBLIC UTILITIES APPROVED ITS REQUEST TO CREATE AN UNREGULATED SUBSIDIARY TO BE KNOWN AS THE BOSTON ENERGY TECHNOLOGY GROUP BOSTON EDISON SAID IT WILL BE ALLOWED TO INVEST AS MUCH AS 45 MILLION IN THE SUBSIDIARY OVER THE NEXT THREE YEARS BOSTON EDISON'S TOTAL ASSETS ARE 33 BILLION THE NEW SUBSIDIARY COMPANY WILL UNDERTAKE SERVICES RELATED TO THE ELECTRIC UTILITY BUSINESS SUCH AS DEMAND SITE MANAGEMENT ELECTRIC TRANSPORTATION AND GENERATION SERVICES BOSTON EDISON SAID THE PARENT COMPANY'S CORE BUSINESS WILL REMAIN THE GENERATION TRANSMISSION DISTRIBUTION AND SALE OF ELECTRICITY 9306220154 930622 BUSINESS BRIEF FORD MOTOR CO AUTO MAKER TO BEGIN SELLING CARS AND MINIVANS IN CHINA FORD MOTOR CO SAID IT WILL BEGIN SELLING CERTAIN NORTH AMERICANBUILT VEHICLES IN CHINA BY AUTUMN FORD WILL SELL THE LINCOLN TOWN CAR AND FORD CROWN VICTORIA TAURUS TEMPO AND AEROSTAR MINIVAN MODELS IN CHINA WE BELIEVE THIS RANGE OF PRODUCTS WILL NICELY MATCH THE NEEDS AND CONDITIONS OF THE CHINESE MARKET SAID ROBERT P SPARVERO VICE PRESIDENT OF FORD'S TOKYOBASED ASIAPACIFIC AUTOMOTIVE OPERATIONS FORD EXPECTS TO SELL 2000 VEHICLES IN CHINA IN 1993 AND 6000 VEHICLES IN 1994 WE WOULD LIKE TO BE A MAJOR PLAYER IN CHINA A FORD SPOKESMAN SAID WE RECOGNIZE THE GROWTH POTENTIAL 9306220153 930622 INTERNATIONAL BRIEF BRITISH STEEL PLC PRETAX LOSS OF 222 MILLION IS REPORTED FOR FISCAL YEAR BRITISH STEEL PLC REPORTED A PRETAX LOSS OF 149 MILLION 222 MILLION FOR THE FISCAL YEAR ENDED APRIL 3 NEARLY THREE TIMES THE SIZE OF ITS YEAREARLIER LOSS OF 55 MILLION THE COMPANY SAID IT IS LIMITING CAPITAL EXPENDITURES AND CUTTING ITS DIVIDEND TO ONE PENNY A SHARE DOWN FROM 45 PENCE THE PREVIOUS YEAR A PRICE WAR WAS THE BIGGEST REASON FOR BRITISH STEEL'S LOSS LAST YEAR SAID BRIAN MOFFAT CHAIRMAN AND CHIEF EXECUTIVE HE ADDED THAT GOVERNMENTSUPPORTED RIVAL COMPANIES PARTICULARLY IN SPAIN AND ITALY HAVE AN UNFAIR ADVANTAGE WE CAN'T COMPETE AGAINST NATIONAL ECONOMIES AND NATIONAL TREASURIES HE SAID THE COMPANY SAID ITS FUTURE PROFITABILITY DEPENDS ON A MAJOR RESTRUCTURING OF THE EUROPEAN STEEL INDUSTRY WHICH MIGHT TAKE YEARS TO ACHIEVE THE PROFIT OUTLOOK FOR THE COMPANY REMAINS FRAGILE MR MOFFAT SAID 9306220152 930622 INTERNATIONAL JAPAN'S FACTIONS COALESCE AMID POLITICAL CRISIS SOCIALISTS HATA UNION FORM UNUSUAL ALLIANCE AGAINST RULING PARTY BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO POLITICAL TURMOIL MAKES STRANGE BEDFELLOWS THE HEADS OF JAPAN'S SOCIALIST PARTY AND THE COUNTRY'S LARGEST LABORUNION GROUP SAID THEY WANT TO COOPERATE WITH TSUTOMU HATA A FORMER FINANCE MINISTER WITH THE CONSERVATIVE RULING PARTY IN COMING ELECTIONS AND IN A POSSIBLE COALITION GOVERNMENT AFTER THE VOTE SUCH MOVES UNTHINKABLE JUST A FEW MONTHS AGO DEMONSTRATE HOW RAPIDLY THE POLITICAL STATUS QUO HAS CRUMBLED SINCE PRIME MINISTER KIICHI MIYAZAWA LOST A VOTE OF NOCONFIDENCE FRIDAY MR HATA LEADS A REBEL GROUP OF LIBERAL DEMOCRATIC PARTY MEMBERS EXPECTED TO BREAK FROM THE RULING PARTY BY TOMORROW MEANWHILE US FEARS ABOUT THE CONSEQUENCES OF JAPAN'S POLITICAL CRISIS SEEM TO BE COMING TRUE THE LEADERSHIP VACUUM IS MAKING IT HARDER FOR JAPAN TO MAKE EXPECTED TRADE CONCESSIONS OR AT LEAST JAPANESE OFFICIALS FIND THE CHAOS TO BE A HANDY EXCUSE YUJI TANAHASHI THE TOP BUREAUCRAT AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY TOLD A NEWS CONFERENCE THAT JAPAN WOULD HAVE TROUBLE BENDING ON SENSITIVE ISSUES DURING MULTILATERAL TRADE TALKS IN TOKYO THIS WEEK IT ISN'T DESIRABLE TO LEAVE AN ISSUE UNSOLVED BUT IT'S HARD TO RESOLVE AN ISSUE THAT REQUIRES A POLITICAL DECISION MR TANAHASHI SAID THIS WEEK'S TRADE NEGOTIATIONS ARE AIMED AT WRAPPING UP KEY ELEMENTS OF THE URUGUAY ROUND OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE BEFORE THE ANNUAL SUMMIT OF INDUSTRIALIZED NATIONS BEGINS IN TOKYO ON JULY 7 BUT IF THE CONFUSION FRUSTRATES FOREIGNERS IT APPEARS TO HAVE CREATED UNUSUAL EXCITEMENT AMONG JAPAN'S CYNICAL ELECTORATE THE JAPANESE HAVE THEIR FIRST REALISTIC CHANCE IN YEARS OF VOTING OUT THE LDP WHICH HAS RUN THE COUNTRY FOR FOUR DECADES A TELEVISION POLL AIRED LAST NIGHT INDICATED THAT 90 OF THOSE ELIGIBLE WOULD TURN OUT FOR THE JULY 18 ELECTIONS LAST YEAR'S PARLIAMENTARY ELECTIONS HAD A RECORDLOW 50 TURNOUT SOCIALIST LEADER SADAO YAMAHANA TOLD HIS PARTY COLLEAGUES THAT WE WILL SEEK COOPERATION WITH ALL REFORM GROUPS INCLUDING THE LDP RENEGADES THE HEAD OF RENGO A FEDERATION OF TRADE UNIONS SAID SEPARATELY THAT HIS GROUP WOULD ALSO CONSIDER EASING ITS POLICY OF ENDORSING MAINLY LEFTIST CANDIDATES AND COULD SUPPORT FORMER LDP MEMBERS IN THE JULY VOTE MR YAMAHANA'S FLIRTATION WITH MR HATA'S GROUP IS PART OF A BROAD REALIGNMENT UNDER WAY IN JAPANESE POLITICS ONE REASON THE LDP HAS DOMINATED THE NATION FOR SO LONG IS THAT THE SOCIALIST PARTY HAS CLUNG TO ANTIQUATED DOGMA THE SOCIALISTS ARE RELUCTANT EVEN NOW TO ADOPT MAINSTREAM POSITIONS SUCH AS ACCEPTING THE USJAPAN SECURITY TREATY AND THE EXISTENCE OF JAPAN'S ARMY BUT MR YAMAHANA AND OTHER SOCIALIST PARTY LEADERS HAVE INDICATED IN RECENT DAYS THEY ARE WILLING TO BEND ON IDEOLOGY FOR A CHANCE TO JOIN A NONLDP GOVERNMENT THE HATA FACTION ISN'T THE ONLY GROUP BREAKING WITH THE LDP TEN LEGISLATORS WHO BOLTED THE PARTY OVER THE WEEKEND ANNOUNCED YESTERDAY CREATION OF A REFORMIST PARTY CALLED SAKIGAKE OR PIONEERS ONE OTHER POSSIBLE DEPARTURE FROM THE LDP IS THAT OF NOBORU TAKESHITA A FORMER PRIME MINISTER WHOSE INVOLVEMENT IN NUMEROUS SCANDALS HELPED SPARK THE REFORM MOVEMENT WHEN THE LDP ANNOUNCED YESTERDAY ITS FORMAL SLATE OF CANDIDATES FOR THE JULY ELECTION MR TAKESHITA WASN'T LISTED A PARTY OFFICIAL SAID TIES TO MR TAKESHITA COULD HURT OTHER LDP CANDIDATES SO MR TAKESHITA IS LIKELY TO RUN AS AN INDEPENDENT BUT THE OFFICIAL ADDED THAT THE DECISION WASN'T FINAL AND MR TAKESHITA COULD STILL TRY FOR AN LDP ENDORSEMENT 9306220151 930622 BUSINESS BRIEF DELTA QUEEN STEAMBOAT CO COMPANY PURSUES PURCHASE OF AMERICAN HAWAII CRUISES DELTA QUEEN STEAMBOAT CO NEW ORLEANS SAID IT FILED A PROPOSAL WITH A FEDERAL BANKRUPTCY COURT IN HAWAII TO PURCHASE CLOSELY HELD AMERICAN HAWAII CRUISES DELTA QUEEN WHICH OPERATES TWO PLEASURE STEAMBOATS ON THE MISSISSIPPI OHIO AND OTHER INLAND RIVERS SAID THE ACQUISITION PROPOSAL WAS ENDORSED BY AMERICAN HAWAII'S SECURED LENDERS AND LABOR UNIONS TERMS WEREN'T DISCLOSED AMERICAN HAWAII'S SECURED LENDERS FILED FOR INVOLUNTARY BANKRUPTCY PROTECTION ON JUNE 19 IN A HAWAIIAN FEDERAL COURT DELTA QUEEN SAID IT EXPECTS THE COURT TO APPROVE DELTA QUEEN'S PROPOSAL TO MANAGE AND THEN ACQUIRE THE COMPANY AMERICAN HAWAII OPERATES TWO AMERICAN FLAG OCEAN LINERS PROVIDING CRUISES AROUND AND TO THE HAWAIIAN ISLANDS 9306220150 930622 FINANCING BUSINESS TORONTO DOMINION BANK TORONTO DOMINION BANK SAID IT SOLD 150 MILLION CANADIAN DOLLARS US1177 MILLION OF 10YEAR 8 SUBORDINATED DEBENTURES PROCEEDS WILL BE ADDED TO THE TORONTO BANK'S CAPITAL BASE 9306220149 930607 HEALTH HMOS PERFORM INAPPROPRIATE HYSTERECTOMIES BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY SAYS THAT MORE THAN 16 OF HYSTERECTOMIES PERFORMED AT MAJOR HEALTH MAINTENANCE ORGANIZATIONS ARE INAPPROPRIATE AND THAT ANOTHER 25 ARE OF QUESTIONABLE BENEFIT RESEARCHERS SAID THE FINDINGS ARE SIGNIFICANT BECAUSE THEY CHALLENGE THE WIDELY HELD VIEW THAT HMOS CONTAIN COSTS IN PART BY LIMITING UNNECESSARY CARE THE CLINTON ADMINISTRATION'S PROGRAM FOR OVERHAULING US HEALTH CARE IS EXPECTED TO RELY HEAVILY ON HMOLIKE ORGANIZATIONS TO HELP REDUCE COSTS MERELY ENROLLING AMERICANS IN MANAGEDCARE PLANS DOESN'T ASSURE QUALITY OF CARE SAID STEVEN J BERNSTEIN A CONSULTANT AT RAND CORP A SANTA MONICA CALIF THINK TANK AND PRINCIPAL AUTHOR OF THE STUDY JUST BECAUSE YOU CAN CONTROL COSTS DOESN'T MEAN YOU'RE GOING TO BE PROVIDING GOOD CARE THE STUDY WHICH COMPARED RATES OF INAPPROPRIATE HYSTERECTOMIES AT SEVEN BIG HMOS WAS DESIGNED TO PROVIDE DATA FOR EVALUATING AND IMPROVING THE QUALITY OF CARE AT SUCH HEALTH PLANS IT APPEARS IN TODAY'S JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION PREVIOUS STUDIES INDICATE THAT AS MANY AS ONETHIRD OF MEDICAL PROCEDURES MAY BE UNNECESSARY PARTLY BECAUSE OF FINANCIAL INCENTIVES IN TRADITIONAL FEEFORSERVICE MEDICINE THAT REWARD DOCTORS FOR DOING MORE ELIMINATING MANY UNNECESSARY SERVICES OFFERS THE POTENTIAL FOR HUGE SAVINGS THAT COULD HELP FINANCE CARE FOR THE UNINSURED HEALTH POLICY EXPERTS SAY BY PAYING DOCTORS A SET OR CAPITATION FEE FOR THE CARE OF PATIENTS HMOS NOT ONLY DIMINISH FINANCIAL INCENTIVES BUT MAY PENALIZE DOCTORS FOR DOING MORE TESTS AND PROCEDURES WHILE HMOS MAY DELIVER LESS CARE AS A RESULT THE STUDY SUGGESTS THAT THE LEVEL OF INAPPROPRIATE CARE MAY NOT BE REDUCED THAT WILL REQUIRE NOT ONLY ECONOMIC REFORM SAYS ROBERT BROOK DIRECTOR OF THE RAND HEALTH SCIENCES PROGRAM AND PROFESSOR OF MEDICINE AT THE UNIVERSITY OF CALIFORNIA AT LOS ANGELES BUT A CHANGE IN WHAT'S GOING ON CLINICALLY MORE THAN 500000 US WOMEN UNDERGO HYSTERECTOMIES EACH YEAR AT A COST OF MORE THAN 2 BILLION THOUGH THE NUMBER HAS DECLINED BY ABOUT 100000 SINCE THE LATE 1970S THE OPERATION IS STILL CONSIDERED TO BE OVERUSED RESEARCHERS SAID THE NUMBER OF UNNECESSARY HYSTERECTOMIES ISN'T WELLDOCUMENTED THOUGH SOME LIMITED REPORTS SUGGEST THE FIGURE IS ABOUT 25 IN ANY EVENT THE CURRENT STUDY DOESN'T COMPARE HMO PERFORMANCE AGAINST FEEFORSERVICE PROVIDERS AND THE RESEARCHERS CAUTIONED AGAINST READING THE REPORTS RATING THE PERFORMANCE OF MANAGED CARE THE STUDY WAS CONDUCTED BY THE HMO QUALITY OF CARE CONSORTIUM A GROUP OF RAND RESEARCHERS AND LEADING HMOS ESTABLISHED IN 1988 TO DEVELOP OBJECTIVE DATA ON QUALITY OF CARE THAT HEALTH PLANS AND THEIR DOCTORS COULD USE TO IMPROVE DELIVERY OF CARE AND THAT PURCHASERS AND CONSUMERS COULD USE TO COMPARE THE PERFORMANCE OF HMOS PROPONENTS OF SUCH MEASURES ARGUE THAT WITHOUT THEM COMPETITION BETWEEN HEALTH PLANS INEVITABLY WILL BE BASED ON COST ALONE AND NOT QUALITY OF CARE USING A METHOD FOR EVALUATING THE APPROPRIATENESS OF CARE DEVELOPED BY RAND RESEARCHERS EVALUATED 642 HYSTERECTOMIES SELECTED RANDOMLY FROM RECORDS OF MORE THAN 5000 WOMEN WHO UNDERWENT THE PROCEDURE AT SEVEN HMOS BETWEEN AUG 1 1989 AND JULY 31 1990 SURGERIES WERE CONSIDERED APPROPRIATE WHEN BENEFITS CLEARLY OUTWEIGHED THE RISKS AND INAPPROPRIATE WHEN THE RISKS WERE HIGHER THAN THE PERCEIVED BENEFITS DR BERNSTEIN WHO ALSO IS AN INTERNIST AT THE UNIVERSITY OF MICHIGAN AND HIS COLLEAGUES DETERMINED THAT 164 OF HYSTERECTOMIES WERE INAPPROPRIATE 25 WERE OF UNCERTAIN NECESSITY AND 58 WERE APPROPRIATE AMONG WOMEN 21 TO 40 YEARS OLD 28 OF SURGERIES WERE CONSIDERED INAPPROPRIATE WHILE 44 WERE DEEMED NECESSARY RATES OF INAPPROPRIATE PROCEDURES AT THE SEVEN HMOS RANGED FROM 10 TO 27 ONLY THE PLAN WITH THE HIGHEST RATE WAS CONSIDERED STATISTICALLY SEPARATE FROM THE OTHERS BRUCE PERRY MEDICAL QUALITY DIRECTOR AT GROUP HEALTH OF PUGET SOUND SEATTLE ONE OF THE PARTICIPATING HMOS SAID THAT AT LEAST 80 OF CASES CONSIDERED INAPPROPRIATE IN THE STUDY CONFORMED TO SURGICAL CRITERIA WIDELY USED IN HOSPITALS HE ALSO SAID THE RAND APPROACH DOESN'T ACCOUNT FOR PATIENTS' WISHES IN SOME CASES PATIENTS AGGRESSIVELY SOUGHT HYSTERECTOMIES THAT DOESN'T MEAN THE RAND CRITERIA ARE WRONG JUST MORE RESTRICTIVE DR PERRY SAID HE SAID THE STUDY SHOULDN'T BE USED TO CONDEMN THE PERFORMANCE OF MANAGED CARE THE HMO CONSORTIUM PROJECT DOVETAILS WITH OTHER CURRENT INITIATIVES TO DEVELOP SUCH COMPARATIVE QUALITY INFORMATION LAST WEEK FOR INSTANCE THE NATIONAL COMMITTEE ON QUALITY ASSURANCE A WASHINGTON GROUP OF PURCHASERS AND PROVIDERS ISSUED A PROPOSED LIST OF ABOUT 60 QUALITY AND FINANCIAL CRITERIA FOR MEASURING THE PERFORMANCE OF HEALTH PLANS IN MARCH UNITED HEALTHCARE CORP MINNEAPOLIS UNVEILED A PROTOTYPE REPORT CARD FOR CONSUMERS TO COMPARE HMO PERFORMANCE SHEILA LEATHERMAN PRESIDENT OF UNITED HEALTHCARE'S CENTER FOR HEALTH CARE POLICY AND EVALUATION UNIT AND HEAD OF THE HMO CONSORTIUM SAID RESEARCH ON APPROPRIATENESS OF SOME PROCEDURES IS CRITICAL TO MAKE SOME QUALITY MEASURES MEANINGFUL FOR INSTANCE A REPORT CARD MIGHT TELL A CONSUMER THAT 10 OF WOMEN AT ONE HEALTH PLAN AND 25 AT ANOTHER HAD UNDERGONE HYSTERECTOMIES SHE SAID BUT WHETHER THOSE RATES ARE GOOD OR BAD DEPENDS ON WHETHER THE SURGERIES SHOULD HAVE BEEN DONE IN THE FIRST PLACE AN EARLIER REPORT BY THE CONSORTIUM FOUND THAT ELDERLY HEARTATTACK PATIENTS WERE TREATED MORE APPROPRIATELY AT HMOS THAN IN FEEFORSERVICE SETTINGS A THIRD STUDY OF PRENATAL SERVICES IS UNDER REVIEW RAND'S DR BROOK SAID THE CONSORTIUM PLANS TO LOOK AT 15 TO 20 MORE PROCEDURES BUT THE RESEARCH IS COMPLEX AND EXPENSIVE AND IT ISN'T CLEAR WHO WILL PAY FOR FUTURE STUDIES THE CURRENT REPORT WAS FUNDED BY THE JOHN A HARTFORD FOUNDATION NEW YORK AND THE PARTICIPATING HMOS SEE RELATED LETTER LETTERS TO THE EDITOR SOME HMO PRACTICES PUT PATIENTS AT RISK WSJ JUNE 7 1993 SEE RELATED LETTER LETTERS TO THE EDITOR HYSTERECTOMY DATA FOR HMOS INCONCLUSIVE WSJ JUNE 22 1993 9305120122 9306070030 YY93 MM06 9306220148 930622 TWA'S UPGRADES ON ATLANTIC FLIGHTS COME INTO THE OPEN BY JAMES S HIRSCH AND SUSAN CAREY STAFF REPORTERS OF THE WALL STREET JOURNAL AIRLINES HAVE BEEN FILLING THEIR MOSTEXPENSIVE SEATS THIS YEAR BY GIVING PASSENGERS UPGRADE COUPONS PARTICULARLY ON TRANSATLANTIC FLIGHTS NOW TRANS WORLD AIRLINES HAS FOUND A SIMPLER WAY TO MOVE THESE FLIERS TO THE FRONT OF THE PLANE BUY A FULLFARE TICKET TO EUROPE AND YOU'LL RECEIVE A CONFIRMED UPGRADE TO THE NEXTHIGHER CLASS OF SERVICE THE OFFER WHICH IS GOOD THROUGH SEPT 30 IN PART REFLECTS THE WEAK DEMAND FOR BUSINESS TRAVEL DURING THE SUMMER MONTHS BUT IT ALSO IS THE LATEST EXAMPLE OF THE INDUSTRY'S EFFORTS TO REPRICE ITS PREMIUM SERVICE AT MOREAFFORDABLE LEVELS LAST FALL FOR EXAMPLE CONTINENTAL AIRLINES ELIMINATED ITS TRANSATLANTIC FIRSTCLASS SERVICE AND PRICES AND REPLACED IT WITH AN EXPANDED BUSINESSCLASS SECTION KLM ROYAL DUTCH AIRLINES JUST ANNOUNCED IT INTENDS TO ELIMINATE FIRSTCLASS SEATING ON ITS JUMBO AIRCRAFT AND REPLACE IT WITH ECONOMY SEATING TWA BY CHARGING BUSINESSCLASS FARES FOR FIRSTCLASS SEATS IN ITS CURRENT PROMOTION IS ESSENTIALLY MATCHING CONTINENTAL'S BUSINESSFIRST SERVICE FOR TWA PASSENGERS WHO RECEIVE THE UPGRADE A ONEWAY FIRSTCLASS TICKET FROM NEW YORK TO PARIS WOULD COST 1458 THE TYPICAL BUSINESSCLASS FARE INSTEAD OF 2660 A ONEWAY BUSINESSCLASS TICKET WOULD COST 972 WHICH IS THE USUAL ECONOMYCLASS FARE IT WAS UNCLEAR YESTERDAY WHETHER OTHER AIRLINES WOULD MATCH TWA'S UPGRADE PROMOTION VIRTUALLY ALL MAJOR CARRIERS FACE THE SAME PROBLEM OF TRYING TO SELL FIRSTCLASS AND BUSINESSCLASS SEATS TO INCREASINGLY COSTCONSCIOUS BUSINESS FLIERS MANY CARRIERS FILL THEIR PREMIUM SEATS WITH FREQUENTFLIER UPGRADES OR INCREASINGLY SPECIAL COUPONS WHICH AIRLINES TRY NOT TO WIDELY PUBLICIZE LEST THEY DIMINISH THE PERCEIVED VALUE OF THE PRODUCT WHAT DISTINGUISHES TWA'S UPGRADE PROGRAM IS THAT THE AIRLINE IS OPENLY PROMOTING IT A LOT OF AIRLINES ARE DOING THIS UNDER THE TABLE NOW TWA IS JUST DOING IT ON TOP SAID DONALD GARVETT VICE PRESIDENT OF SH&E A TRAVEL CONSULTING FIRM IN NEW YORK TWA SAID ITS EUROPEAN BOOKINGS THIS SUMMER HAVE BEEN STRONG BUT IT'S OFFERING THE UPGRADE PROMOTION TO COUNTER VARIOUS DEALS FROM OTHER CARRIERS FOR EXAMPLE DELTA AIR LINES AND AMR CORP'S AMERICAN AIRLINES ARE OFFERING UPGRADES TO FLIERS WHO PURCHASE TICKETS WITH AMERICAN EXPRESS CO CARDS AIR FRANCE RESPONDING TO CONTINENTAL'S BUSINESSFIRST SERVICE IS OFFERING AN UPGRADE ON ITS HOUSTONPARIS FLIGHTS TWA'S OFFER IS NOT REALLY TO GENERATE TRAFFIC PER SE SAID BOB COZZI TWA'S SENIOR VICE PRESIDENT FOR MARKETING BUT THERE ARE SO MANY DEALS AND COUPONS OUT THERE SEPARATELY ALL MAJOR AIRLINES MATCHED WINGS HOLDINGS INC'S NORTHWEST AIRLINES' 30 FARE SALE FOR TICKETS PURCHASED BY FRIDAY THE DISCOUNT APPLIES TO DOMESTIC FLIGHTS FOR TRAVEL THROUGH SEPT AMR CORP'S AMERICAN AIRLINES DOES NOT OFFER SEAT UPGRADES TO FLIERS WHO PURCHASE TICKETS WITH AN AMERICAN EXPRESS CO CARD AN ARTICLE YESTERDAY INCORRECTLY SAID THAT THE AIRLINE DOES OFFER SUCH AN UPGRADE 9306220147 930622 SOUR NOTE AFTER TURNING AROUND GIDDINGS & LEWIS FIFE IS TURNED OUT HIMSELF QUESTIONABLE FINANCIAL DEALS AND A VERY ABRASIVE STYLE OVERSHADOW BIG PROFITS HOW TO SURVIVE THE TORTURE' BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL FOND DU LAC WIS WILLIAM J FIFE JR ALWAYS MADE CUSTOMERS FEEL RIGHT AT HOME WHEN THEY VISITED GIDDINGS & LEWIS INC'S FARMCOUNTRY HIDEAWAY SOUTH OF THE MACHINETOOL MAKER'S HEADQUARTERS HERE BEFORE SENDING GUESTS OUT FOR A LEISURELY PHEASANT HUNT THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER HAD THE BUSHES STOCKED WITH BIRDS FROM A LOCAL GAME FARM AN AREA RESIDENT WOULD CLEAN ANY DOWNED BIRDS AND MR FIFE WOULD SEND GUESTS HOME WITH BOXED FROZEN SPECIMENS FROM PREVIOUS HUNTS BUT ON MR FIFE'S LAST VISIT TO THE RETREAT ON APRIL 26 HE TURNED FROM THE HUNTERS' HOST TO THE HUNTED THERE HIS FRIEND AND FELLOW GIDDINGS DIRECTOR CLYDE FOLLEY ASKED HIM ON BEHALF OF THE BOARD TO RESIGN IT WAS A DIFFICULT DISCUSSION FOR MR FOLLEY A RETIRED VICE CHAIRMAN OF INGERSOLLRAND CO AFTER ALL HE AND THE SEVEN OTHER OUTSIDE DIRECTORS HAD BEEN BROUGHT IN BY MR FIFE IT WASN'T THE BEST DAY IN MY LIFE SAYS MR FOLLEY NOW GIDDINGS'S INTERIM CHAIRMAN I LIKE HIM THE GIDDINGS BOARD'S AGONIZING DECISION ILLUMINATES A DILEMMA OUTSIDE DIRECTORS FACE AS THEY EXERT GREATER OVERSIGHT OF PUBLIC COMPANIES WHEN IS IT TIME TO TURN AWAY FROM A TURNAROUND MAN THAT QUESTION WAS ESPECIALLY TRICKY AT GIDDINGS SINCE THE COMPANY WAS THRIVING UNDER MR FIFE IN SIX YEARS HE HAD TAKEN GIDDINGS FROM A CASHSTARVED UNIT OF A LITTLEKNOWN COMPANY TO THE COUNTRY'S MOST SUCCESSFUL MAKER OF FACTORY MACHINES IN THE PROCESS THE 56YEAROLD EXECUTIVE BECAME A SYMBOL AND HIGHPROFILE SPOKESMAN FOR THE COUNTRY'S MANUFACTURING INDUSTRY EVEN APPEARING AS A BURLY COVER BOY FOR FORTUNE MAGAZINE YET BOARD MEMBERS SAY MR FIFE HAD BEGUN TO TREAT GIDDINGS AS IF IT WAS HIS OWN WHAT IS MORE HE WAS MICROMANAGING MORE FOR TODAY THAN FOR TOMORROW SAYS MR FOLLEY ULTIMATELY SAY CURRENT AND FORMER EXECUTIVES MR FIFE'S STYLE LED TO QUESTIONABLE FINANCIAL DEALS A TOOAGGRESSIVE EMPHASIS ON SHORTTERM RESULTS AND A MANAGEMENT APPROACH SO ABRASIVE THAT SOME OF HIS TOP LIEUTENANTS BECAME HIS BITTER ENEMIES MR FIFE WHO IS STILL NEGOTIATING A SEVERANCE AGREEMENT WON'T DISCUSS MOST OF THE EVENTS LEADING UP TO HIS DEPARTURE BUT IN AN IMPROMPTU INTERVIEW IN THE BACKYARD OF HIS SPRAWLING RANCH HOUSE IN RURAL WISCONSIN HE DOES TALK ABOUT HIS RECORD EACH OF THE PAST 15 QUARTERS HE NOTES EXCEEDED YEAREARLIER RESULTS FOR ALL OF LAST YEAR EARNINGS SURGED 61 TO 355 MILLION OR 116 A SHARE SALES NEARLY DOUBLED TO 6229 MILLION FEW WOULD HAVE PREDICTED THE SOUR ENDING TO MR FIFE'S GIDDINGS CAREER WHEN HE WAS HIRED IN 1987 GIDDINGS WAS A LACKLUSTER UNIT OF AMCA INTERNATIONAL NOW UNITED DOMINION INDUSTRIES LTD MAKING FACTORYAUTOMATION EQUIPMENT SALES WERE DECLINING FOR THE SECOND STRAIGHT YEAR AND THE COMPANY WAS IN THE RED MR FIFE WHO HAD MOST RECENTLY TRIED TO REVIVE A UNIT OF MICHIGAN MACHINETOOL MAKER CROSS & TRECKER CORP SEEMED JUST THE MAN TO PUT SOME SPARK BACK IN THE OPERATION HE WAS A SHIRTSLEEVES KIND OF MANAGER THE TYPE WHO WORKED SEVEN DAYS A WEEK AND EXPECTED NO LESS FROM HIS DEPUTIES GIDDINGS HE QUICKLY DECIDED SHOULD BROADEN ITS CUSTOMER BASE BEYOND ITS TRADITIONAL USERS LIKE THE BIG THREE US AUTO MAKERS TO THAT END HE MASTERMINDED THE 1073 MILLION PURCHASE IN 1991 OF HIS FORMER EMPLOYER CROSS & TRECKER A COMPANY TWICE GIDDINGS'S SIZE ALLOWING GIDDINGS TO EXPAND INTO LOWEREND MACHINE TOOLS AND GAIN INCREASED ACCESS TO EUROPE HE ALSO HELPED SPIN OFF GIDDINGS AS A PUBLIC COMPANY IN 1989 BUT WHAT REALLY SET MR FIFE APART WAS THE PASSION WITH WHICH HE WOOED CUSTOMERS UNDER HIS LEADERSHIP THE COMPANY DIDN'T SELL MACHINE TOOLS IT SOLD SOLUTIONS TO FACTORY PROBLEMS HE CARTED THE ENTIRE BOARD TO CUSTOMERS' PLANTS CONDUCTING MEETINGS AT BOEING CO AMR CORP'S AMERICAN AIRLINES AND AT A GENERAL MOTORS CORP SATURN PLANT MR FIFE HIMSELF ENTERTAINED CUSTOMERS TWO OR THREE EVENINGS A WEEK AT THE HIDEAWAY ABOUT 10 MILES FROM THE CITY HE WOULD FLY OR DRIVE ANYWHERE ANYTIME TO BOOK AN ORDER OR RESOLVE A COMPLAINT ONCE YOU DO THAT FOR A CUSTOMER YOU MAKE THEM FANATICALLY LOYAL TO YOU SAYS GEORGE GERCKEN A CONSULTING PSYCHOLOGIST WHO HAS ADVISED MR FIFE FOR YEARS UNFORTUNATELY FOR MR FIFE THAT LOYALTY WASN'T SHARED BY MANY OF HIS TOP EXECUTIVES CURRENT AND FORMER GIDDINGS EXECUTIVES SAY MR FIFE REGULARLY BELITTLED THEM IN FRONT OF THEIR PEERS HE COULD BE VERY TOUGH VERY BELLIGERENT SAYS JAMES ROBERTS FORMER HEAD OF WORLDWIDE SALES WHO STILL KEEPS IN TOUCH WITH MR FIFE THE TORTURE AS ANOTHER FORMER EXECUTIVE CALLS IT TOOK PLACE IN A LONG NARROW CONFERENCE ROOM STEPS AWAY FROM MR FIFE'S OFFICE OFTEN HE WOULD INFLICT IT WHEN REVIEWING FINANCIAL GOALS SUCH AS SALES PROJECTIONS OR ORDERS THE ATTACK AGAINST A TARGETED EXECUTIVE WOULD START WHEN THE NUMBERS THAT FLASHED ON THE OVERHEAD PROJECTOR DIDN'T SUIT HIM MR FIFE'S VOICE WOULD GROW LOUD AND HIS FACE WOULD TURN RED THE ATTACK WOULD PERSIST FOR SEVERAL MINUTES ONLY TO START UP AGAIN WITH THE NEXT SET OF NUMBERS OTHER EXECUTIVES WOULD SIT IN EMBARRASSED SILENCE AND THE TARGETS LEARNED THAT ARGUING ONLY LENGTHENED THE TIRADES THOMAS BULLOCK SAYS HE WAS ONE OF THE FEW TO ANSWER THE CHAIRMAN'S ACCUSATIONS AND HE BELIEVES THAT IS WHY HE WAS ASKED TO RETIRE EARLY IN 1990 MR BULLOCK NOW A FOND DU LAC CONSULTANT SAYS HE ONCE TOLD MR FIFE IT WAS HIS FAULT THAT MR BULLOCK DIDN'T MEET SALES TARGETS THE CHAIRMAN HE SAYS DENIED HIM THE CAPITAL AND MANPOWER HE NEEDED FOR A NEW PRODUCT THE LOUD ENCOUNTER THAT RESULTED LEFT MR BULLOCK SHAKING AND HE SAYS TWO EXECUTIVES FEARED HE WOULD QUIT ON THE SPOT HE MANAGES BY FEAR SAYS MR BULLOCK SOME EXECUTIVES LEARNED TO IGNORE THE CHAIRMAN'S ERUPTIONS AFTER MR FIFE ORDERED THE DISMISSAL OF A SERVICE REPRESENTATIVE FOR ACCIDENTALLY DAMAGING A COMPANY CAR TOP EXECUTIVES STALLED HE'S A GOOD SERVICE MAN SAYS HARRY HEEB ONE OF THE FORMER EXECUTIVES HE'S STILL WORKING FOR US TODAY BUT MR HEEB ALSO SAYS MR FIFE'S OUTBURSTS DIDN'T BOTHER HIM AS A SALESMAN I PROBABLY HAVE A THICKER SKIN HE EXPLAINS FOR MANY SATURDAYS AND SUNDAYS BECAME REGULAR WORKDAYS ONE FORMER EXECUTIVE STILL HAS A MAGAZINE ARTICLE IN WHICH MR FIFE HAD HIGHLIGHTED A PASSAGE SAYING A SUCCESSFUL MANAGER TELLS HIS WIFE NOT TO EXPECT HIM FOR DINNER EXAMPLES MUST BE FROM THE TOP MR FIFE SCRIBBLED IN THE MARGIN MR FIFE ACKNOWLEDGES HE COULD BE HARD ON PEOPLE BUT SOME THINK HE NEVER FULLY REALIZED THE EFFECT OF HIS TIRADES HE SOMETIMES FOLLOWED AN EPISODE BY INVITING THE TARGET OF HIS RAGE TO LUNCH OR DINNER THAT DIDN'T STOP RESENTMENT FROM BUILDING AT THE CONFERENCE CENTER SOME OFFICIALS ONCE JOKED OF SENDING THE CHAIRMAN OUT AMONG THE PHEASANTS WITH A TARGET ON HIS BACK FINALLY IN MIDAPRIL A FEW PLACED DISTRESSED PHONE CALLS TO MR FOLLEY AT HIS HOME IN NORTH PALM BEACH FLA LATER IN A SECRET MEETING IN MILWAUKEE WITH MR FOLLEY WHO HEADS THE BOARD'S AUDIT COMMITTEE THE EXECUTIVES COMPLAINED ABOUT THEIR LEADER'S ABRASIVE MANAGEMENT STYLE AND CONSTANT EMPHASIS ON SHORTTERM RESULTS MR FOLLEY SAYS HE LISTENED AND ASKED QUESTIONS BUT DIDN'T MAKE ANY PROMISES EVEN AS MR FOLLEY WAS HEARING FROM DISGRUNTLED EMPLOYEES BOARD MEMBERS WERE GROWING UNEASY ABOUT MR FIFE'S BUSINESS DEALINGS THEY WERE ESPECIALLY WARY ABOUT TWO REALESTATE TRANSACTIONS WHICH THEY SAY MR FIFE INITIATED WITHOUT BOARD APPROVAL IN FEBRUARY THE BOARD'S AUDIT COMMITTEE LEARNED THAT GIDDINGS AND MR FIFE HAD BOUGHT ADJOINING PARCELS OF LAND OUTSIDE FOND DU LAC IN DECEMBER MR FIFE TO ADD TO HIS OWN HOLDINGS AND THE COMPANY ACCORDING TO ITS PROXY STATEMENT FOR FUTURE EXPANSION IN FACT THE COMPANY BOUGHT A NONWORKING FARM COMPLETE WITH A BIG WHITE BARN AND RED FARMHOUSE GIDDINGS OFFICIALS NOW SAY THEY HAVE NO IDEA WHAT TO DO WITH THE BUILDINGS AND 216 ACRES THEY ACQUIRED FOR 380000 I DON'T KNOW WHY IT WAS BOUGHT ADMITS MR FOLLEY WITH THE RIGHT OFFER WE WOULD SELL IT MR FIFE'S 70ACRE TRACT BOUGHT FOR 70000 IS UNDEVELOPED LAND ADJACENT TO THE LAND AROUND HIS HOUSE OVERLOOKING LAKE WINNEBAGO THE FARMER WHO SOLD THE LAND SAYS MR FIFE TRIED TO BUY A PIECE OF IT A FEW YEARS AGO THE FARMER HENRY IMMEL SAYS HE REFUSED BECAUSE HE WANTED TO SELL ALL OF IT MR FIFE SAYS HE HAD PLANS FOR THE COMPANY'S LAND BUT THAT HE CAN'T ELABORATE NOW SUPPORTERS SAY HE WANTED TO BUILD A PLANT THERE THAT WOULD HAVE TAKEN SOME WORK THE LAND IN TAYCHEEDAH WIS IS ZONED FOR AGRICULTURAL USE THAT TRANSACTION FOLLOWED ANOTHER LAST JUNE WHEN GIDDINGS PAID MR FIFE 155000 FOR FOUR CONDOMINIUMS AT A RESORT IN MISSOURI'S LAKE OF THE OZARKS REGION THE COMPANY'S PROXY STATEMENT SAYS THE CONDOS WHICH MR FIFE HAD BOUGHT FOR 155000 IN L985 AND LATER HAD UNSUCCESSFULLY TRIED TO SELL ARE USED FOR SEMINARS STAFF MEETINGS AND OTHER BUSINESS PURPOSES BUT RICHARD KLEINFELDT THE ACTING PRESIDENT AND CHIEF OPERATING OFFICER SAYS THE COMPANY USED THEM TWICE AND ONLY ONCE SINCE BUYING THEM FROM MR FIFE WHETHER THE COMPANY KEEPS THEM STILL HAS TO BE DECIDED HE SAYS SOME MANAGERS WERE ALSO DISTURBED BY MR FIFE'S TACTICS TO BOOST SHORTTERM RESULTS THE QUARTER WAS REGULARLY HELD OPEN FOR EXAMPLE SO THAT BOOKINGS RECEIVED AFTER THE END OF THE QUARTER COULD BOOST THE ORDERS NUMBER THE FIGURE IS WIDELY WATCHED BY INVESTORS AS AN INDICATION OF FUTURE SALES AND EARNINGS INTERNAL GIDDINGS DOCUMENTS SHOW NUMEROUS INSTANCES OF STRETCHING THE QUARTER INSIDE HEADQUARTERS THE PRACTICE BECAME SOMETHING OF A JOKE REPEATED EVERY THREE MONTHS OR SO IS THE QUARTER OVER YET MR FOLLEY ACKNOWLEDGES THE HABIT AND INSISTS IT WASN'T IMPROPER YET HE SAYS IT PUT PRESSURE ON GIDDINGS OFFICIALS TO PRESS CUSTOMERS FOR ORDERS AND THAT HE IS HALTING THE PRACTICE AS FAR AS I'M CONCERNED THE SECOND QUARTER WILL BE OVER JUNE 30 HE SAYS INSIDERS ALSO QUESTIONED ANOTHER FIFE PRACTICE EACH YEAR HE CAME UP WITH TWO PLANS PROJECTING BOOKINGS SALES AND EARNINGS ONE WAS FOR THE BOARD A MUCH HIGHER ONE WAS FOR HIS MANAGERS TO MEET MR FOLLEY ALSO CONFIRMS THIS PRACTICE BUT SAYS HE PUT A STOP TO IT WHEN HE LEARNED ABOUT IT IT WAS USED HE BELIEVES TO PUT PRESSURE ON COMPANY EXECUTIVES DESPITE THE MOUNTING DISSATISFACTION DIRECTORS REMAINED RELUCTANT TO FORCE OUT MR FIFE NOT ONLY DID HE BRING THEM ALL ON BOARD BUT HIS TACTICS HAD IN FACT WORKED THE STOCK WAS UP NEARLY FOURFOLD FROM THE DAY IT WENT PUBLIC IN JULY 1989 FAR OUTPACING BOTH THE OVERALL STOCK MARKET AND SHARESOF OTHER MACHINE MAKERS THE DIRECTORS HAD INCREASED HIS 1992 SALARY BY 45421 TO 404167 THEY ADDED A BONUS OF 270724 PLUS OPTIONS TO BUY 40506 SHARES AT 1975 EACH BUT THE REALESTATE TRANSACTIONS BOTHERED THEM AND COMPLAINTS ABOUT HIS HARSH MANNER RAISED QUESTIONS ABOUT HIS LONGTERM FITNESS FOR THE JOB THE COMPANY'S 1992 ANNUAL REPORT WITH ITS FOCUS ON CREATIVE VISION IS GREAT SAYS MR FOLLEY BUT IT ISN'T ACHIEVED BY RANTING AND RAVING WITH THE ANNUAL MEETING SET FOR APRIL 28 THERE WASN'T MUCH TIME TO DELIBERATE SO WHEN MR FIFE ARRIVED AT THE CONFERENCE CENTER EARLY ON APRIL 26 HE WAS GREETED BY MR FOLLEY AND BOARD MEMBER JAMES UNDERKOFLER THE RETIRED CHAIRMAN OF WPL HOLDINGS INC WITH OTHER DIRECTORS HOOKED IN BY PHONE THE BOARD TOOK A HALF HOUR TO OUTLINE THE CASE AGAINST THE CHAIRMAN MR FIFE LISTENED QUIETLY THEN SIGNED A RESIGNATION LETTER STATING HE WOULD STAY ON AS AN EMPLOYEE UNTIL A SEVERANCE AGREEMENT WAS REACHED SEVERANCE PAY COULD BE SUBSTANTIAL AT THE END OF 1992 MR FIFE'S UNEXERCISED OPTIONS AND AWARDS OF RESTRICTED SHARES WERE VALUED AT 78 MILLION THE BOARD HAS SAID IT MIGHT ALLOW HIM TO KEEP A PORTION OF THAT THE DIRECTORS ALSO AGREED TO PAY FOR AN OUTPLACEMENT FIRM AND PROVIDE AN OFFICE AND SECRETARY BUT NOT AT HEADQUARTERS MR FOLLEY SAYS MR FIFE HASN'T TAKEN THE OFFER THE COMPANY ONLY ALLUDED TO THE PROBLEMS IN A PRESS RELEASE CITING POLICY DIFFERENCES WITH THE BOARD OF DIRECTORS BOARD CONCERN ABOUT CERTAIN TRANSACTIONS BETWEEN MR FIFE AND THE COMPANY AND A COMMUNICATIONS LAPSE BETWEEN MR FIFE AND THE COMPANY'S MANAGEMENT THE NEWS AND A DECLINE IN ORDERS ANNOUNCED THE SAME DAY SENT GIDDINGS STOCK PLUNGING 675 TO 2050 IN OVERTHECOUNTER TRADING IT HAS SINCE RECOVERED TO 2250 LAST MONTH THE GIDDINGS BOARD CHOSE ONE OF ITS MEMBERS JOSEPH COPPOLA TO TAKE OVER AS CHAIRMAN AND CHIEF EXECUTIVE EFFECTIVE JULY 1 MR COPPOLA IS CURRENTLY SENIOR VICE PRESIDENT FOR MANUFACTURING SERVICES AT COOPER INDUSTRIES INC IN HOUSTON MR COPPOLA LIKE MR FIFE KNOWS MANUFACTURING AND IS GOOD WITH CUSTOMERS BUT HIS STYLE IS MARKEDLY DIFFERENT AS MR FOLLEY PUTS IT THE BOARD WANTED NICE LEVEL QUIET LEADERSHIP 9306220146 930622 BUSINESS BRIEF KEY TRONIC CORP BREAKEVEN JULY QUARTER IS POSSIBLE COMPANY SAYS KEY TRONIC CORP SPOKANE WASH SAID IT MIGHT POST BREAKEVEN RESULTS FOR ITS FOURTH QUARTER ENDING JULY 3 A YEAR EARLIER THE COMPUTER KEYBOARD COMPANY REPORTED A LOSS OF 53 MILLION OR 69 CENTS A SHARE ON REVENUE OF 344 MILLION STANLEY HILLER CHIEF EXECUTIVE OFFICER BLAMED THE SOFT COMPUTER MARKET FOR THE DIFFICULTY AND SAID THE NEXT QUARTER COULD ALSO SUFFER BUT MR HILLER SAID THE COMPANY WAS STILL ON TRACK IN MOVING FROM HEAVY LOSSES TOWARD PROFIT BY CUTTING COSTS AND BROADENING ITS CUSTOMER BASE 9306220145 930622 NATIONAL HEALTH TO BUY DAMON FOR 258 MILLION PACT VALUED AT 16 A SHARE WILL CREATE A NEW GIANT IN MEDICAL TESTING FIELD BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL NATIONAL HEALTH LABORATORIES INC SAID IT AGREED TO ACQUIRE DAMON CORP FOR 258 MILLION IN CASH AND STOCK OR 16 A SHARE IN A MOVE THAT WOULD CREATE A GIANT AMONG MEDICAL TESTING LABS ONLY SLIGHTLY SMALLER THAN INDUSTRY LEADER SMITHKLINE BEECHAM PLC'S LAB UNIT THE PROPOSED ACQUISITION SUGGESTS THAT THE CUTTHROAT LAB BUSINESS IS ON THE VERGE OF A NEW WAVE OF COSTCUTTING AND CONSOLIDATION AS A RESULT OF PENDING MEDICARE CUTS AND OTHER LIKELY HEALTHCARE REFORM MOVES ANALYSTS SAID THE TWOSTEP TRANSACTION INCLUDES A TENDER OFFER FOR ABOUT 55 OF DAMON'S SHARES OUTSTANDING WITH THE REMAINING 45 TO BE SWAPPED FOR NATIONAL HEALTH SHARES NATIONAL HEALTH BASED IN SAN DIEGO AND DAMON BASED IN NEEDHAM HEIGHTS MASS SAID THEIR BOARDS APPROVED THE PACT THE TENDER OFFER IS SET TO BEGIN TODAY WITH THE SWAP AND MERGER EXPECTED TO BE COMPLETED IN SEPTEMBER ACCORDING TO NATIONAL HEALTH THE TENDER OFFER IS FOR 89 MILLION DAMON SHARES AT 16 A SHARE IN CASH TO BE FOLLOWED BY THE STOCK SWAP IN WHICH EACH OF THE REMAINING 72 MILLION SHARES WILL BE EXCHANGED ON A TAXFREE BASIS FOR 16 A SHARE IN NATIONAL HEALTH STOCK DAMON SHARES JUMP 1875 AFTER THE ANNOUNCEMENT YESTERDAY DAMON SHARES JUMPED 1875 OR 14 TO 1575 AND NATIONAL HEALTH SHARES FELL 375 CENTS TO 1750 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING BASED ON NATIONAL HEALTH'S CLOSING PRICE EACH DAMON SHARE WOULD BE EXCHANGED FOR ABOUT 091 OF A NATIONAL HEALTH SHARE UNDER THE ACCORD DAMON HOLDERS WOULD RECEIVE A MINIMUM OF 08 OF A NATIONAL HEALTH SHARE AND A MAXIMUM OF 10667 SHARES FOR EACH DAMON SHARE HELD NATIONAL HEALTH SAID IT EXPECTS THE COMBINATION TO RESULT IN SUBSTANTIAL COST SAVINGS FOR DAMON'S OPERATIONS DAVID FLAUGH NATIONAL HEALTH'S CHIEF OPERATING OFFICER DECLINED TO SPECIFY WHAT CUTS MIGHT BE MADE BUT SAID THE COMPANY HOPES TO DOUBLE DAMON'S 10 OPERATING MARGIN NATIONAL HEALTH'S MARGIN LAST YEAR BEFORE A ONETIME CHARGE WAS ABOUT 27 NATIONAL HEALTH HAS REGIONAL LABS IN 15 US CITIES AND DAMON HAS LABS IN 14 CITIES INCLUDING MEXICO CITY ANALYSTS SAID SIZABLE SAVINGS WOULD COME FROM SHUTTING DOWN A LAB IN EACH OF THE FIVE CITIES WHERE BOTH COMPANIES HAVE FACILITIES THE ACQUISITION ALSO GIVES NATIONAL HEALTH NEW MARKETS IN BOSTON AND SAN FRANCISCO THE KEY TO THE WHOLE THING IS NHL BEING ABLE TO CLOSE DOWN DAMON'S LABS AND FOLD THEM INTO THEIR OWN OPERATIONS SAID DAMON BRUNDAGE AN ANALYST AT PAINEWEBBER INC NATIONAL HEALTH TAKES OUT A COMPETITOR AND IS BUYING A LARGE CUSTOMER LIST MR BRUNDAGE SAID DAMON WAS ACQUIRED IN A LEVERAGED BUYOUT IN 1989 BUT WENT PUBLIC AGAIN IN 1991 AND GREW RAPIDLY THROUGH ACQUISITIONS AND INTERNAL EXPANSIONS IN JANUARY DAMON'S STOCK PLUMMETED MORE THAN 25 AFTER THE COMPANY DISCLOSED THAT IT EXPECTED TO REPORT FOURTHQUARTER RESULTS BELOW ANALYSTS' EXPECTATIONS FOR ALL OF 1992 THE COMPANY EARNED 18 MILLION OR 114 A SHARE ON SALES OF 317 MILLION NATIONAL HEALTH'S NET INCOME PLUNGED 61 TO 406 MILLION OR 43 CENTS A SHARE AFTER A 136 MILLION PRETAX CHARGE FOR A GOVERNMENT SETTLEMENT OF HEALTHCARE FRAUD CHARGES SALES FOR THE YEAR WERE 7214 MILLION NATIONAL HEALTH'S PROBLEMS WITH THE GOVERNMENT WHICH INVOLVED CERTAIN MEDICARE BILLING PRACTICES MAY BE A FACTOR BEHIND THE DAMON ACQUISITION SAID DENNIS WEISSMAN PUBLISHER OF LABORATORY INDUSTRY REPORT A WASHINGTONBASED INDUSTRY NEWSLETTER SINCE THE GOVERNMENT HAS QUESTIONED NATIONAL HEALTH'S MARKETING PRACTICES TO PHYSICIANS THE COMPANY MAY NEED TO FOCUS MORE ON ACQUISITIONS TO ASSURE CONTINUED HEALTHY GROWTH MR WEISSMAN SAID DAVID STIPP CONTRIBUTED TO THIS ARTICLE 9306220144 930622 BUSINESS BRIEF US HOME CORP CHAPTER 11 PROTECTION ENDS AS REORGANIZATION PROCEEDS US HOME CORP SAID ITS REORGANIZATION PLAN BECAME EFFECTIVE YESTERDAY ALLOWING IT TO EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROCEEDINGS THE HOUSTON HOMEBUILDING CONCERN ALSO CLOSED THE SALE OF 200 MILLION IN 10YEAR 975 SENIOR NOTES AND CLOSED A FOURYEAR SECURED LINE OF CREDIT WITH GENERAL ELECTRIC CO'S GENERAL ELECTRIC CAPITAL CORP EFFECTIVE WITH ITS REORGANIZATION THE COMPANY NAMED SIX NEW DIRECTORS TO ITS 11MEMBER BOARD GLEN ADAMS 53 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF SOUTHMARK CORP STEVEN L GERARD 48 CHAIRMAN AND CHIEF EXECUTIVE OF TRIANGLE WIRE & CABLE INC AND FOUR PRIVATE INVESTORS MALCOLM T HOPKINS 65 JACK L MCDONALD 59 GEORGE A POOLE JR 61 AND JAMES W SIGHT 37 9306220143 930622 WHAT'S NEWS WORLD WIDE THE SUPREME COURT UPHELD US REPATRIATION OF HAITIANS THE JUSTICES UPHELD THE POLICY OF INTERCEPTING AND FORCIBLY RETURNING HAITIAN REFUGEES WITHOUT HEARING THEIR PLEAS TO ENTER THE US THE HIGH COURT RULED 81 THAT STOPPING THE REFUGEES IN INTERNATIONAL WATERS AND SENDING THEM HOME DOESN'T VIOLATE FEDERAL IMMIGRATION LAW OR INTERNATIONAL TREATIES THE OBLIGATION TO CONSIDER REFUGEES' REQUESTS FOR POLITICAL ASYLUM DOESN'T APPLY OUTSIDE OF THE US AND ITS FOREIGN EMBASSIES THE COURT SAID HAITI'S ARMY CHIEF IN A LETTER TO A SPECIAL UN ENVOY EXPRESSED WILLINGNESS TO MEET WITH DEPOSED PRESIDENT ARISTIDE TO NEGOTIATE AN END TO THE NATION'S POLITICAL CRISIS PRESIDENT CLINTON SENT A LETTER YESTERDAY TO KOHL AT AN EC SUMMIT ASKING THE GERMAN CHANCELLOR TO SUPPORT EFFORTS TO LIFT AN ARMS EMBARGO SO THAT BOSNIA'S MUSLIMS CAN DEFEND THEMSELVES DIPLOMATS SAID THEY SAID KOHL HAD PUSHED WITHOUT SUCCESS FOR THE EC TO AGREE TO THE IDEA JAPAN'S GOVERNING PARTY SUFFERED ANOTHER SETBACK WHEN THE HEADS OF THE SOCIALIST PARTY AND THE LARGEST LABORUNION GROUP SAID THEY INTEND TO COOPERATE WITH EXFINANCE MINISTER HATA TO CHALLENGE THE LIBERAL DEMOCRATS OPPOSITION GROUPS ARE WORKING TOGETHER IN HOPES OF WINNING A JULY 18 PARLIAMENTARY VOTE TWO CAR BOMBS EXPLODED IN CENTRAL MADRID AT THE HEIGHT OF THE MORNING RUSH HOUR KILLING SEVEN PEOPLE AND INJURING 25 POLICE SAID NO GROUP CLAIMED RESPONSIBILITY BUT OFFICIALS SAID THE BOMBS APPEARED TO BE THE WORK OF SPAIN'S ETA BASQUE SEPARATISTS CLINTON SAID HE WOULD CALL A CALIFORNIA MAN WHO SAYS HE RECENTLY DISCOVERED THAT HE IS THE PRESIDENT'S HALFBROTHER IN THE MEANTIME CLINTON DECLINED TO COMMENT ON THE CLAIMS MADE BY HENRY RITZENTHALER 55 OF PARADISE CALIF WHO SAYS THAT HE AND CLINTON HAD THE SAME FATHER POPE JOHN PAUL II HAS APPOINTED A COMMITTEE OF VATICAN AND US CATHOLIC CHURCH OFFICIALS TO STUDY WHETHER TO MAKE IT EASIER TO DISMISS SEXUALLY ABUSIVE CLERGY THE PANEL FORMED AT THE REQUEST OF US BISHOPS WILL STUDY WHETHER THE CHURCH'S FIVEYEAR STATUTE OF LIMITATIONS ON DISMISSALS CAN BE LIFTED IN CASES INVOLVING SEXUAL ABUSE OF MINORS THE US AND MEXICO AGREED TO REVISE THEIR EXTRADITION TREATY TO BAN ABDUCTIONS OF CRIMINAL SUSPECTS SECRETARY OF STATE CHRISTOPHER SAID CLINTON HAD PROVIDED WRITTEN ASSURANCES THAT HE WON'T CONDONE SUCH KIDNAPPINGS BY US AGENTS IN MEXICO AS LONG AS TREATY TALKS ARE UNDER WAY CHICAGO POLICE REPORTED THAT TWO PEOPLE WERE SHOT TO DEATH AND 645 WERE ARRESTED IN THE CELEBRATION THAT ERUPTED SUNDAY NIGHT AFTER THE CHICAGO BULLS WON THEIR THIRD CONSECUTIVE NBA CHAMPIONSHIP THE UN RESUMED LIMITED FOOD DISTRIBUTION IN SOUTH MOGADISHU AN AREA CONTROLLED BY SOMALI CLAN LEADER AIDID FOR THE FIRST TIME IN MORE THAN TWO WEEKS AIDID MEANWHILE REMAINED IN HIDING WANTED ON CHARGES STEMMING FROM JUNE 5 AMBUSHES THAT KILLED 24 PAKISTANI UN PEACEKEEPERS THE CAMBODIAN GOVERNMENT CONCEDED FORMALLY THAT IT LOST LAST MONTH'S ELECTIONS OFFICIALS IN PHNOM PENH ANNOUNCED THEY WERE PUTTING ASIDE THEIR PREVIOUS CHARGES THAT THE VOTE WAS RIGGED THE NAVY IS REVERSING ITSELF AND SHRINKING ITS HUGE INHOUSE AIRCRAFTMAINTENANCE CAPABILITIES ACCORDING TO A TOP NAVY OFFICER IN A POLICY STATEMENT HE SAID THE NAVY PLANS TO DIRECT MOST OF THAT WORK TOWARD THE PRIVATE SECTOR THE GOVERNMENT SHOULD ALLOCATE ITS 70 BILLION IN RESEARCHANDDEVELOPMENT FUNDS ACCORDING TO EVALUATIONS OF THE COMPETITIVENESS OF US SCIENCE THE NATIONAL ACADEMY OF SCIENCES SAID SHUTTLE ENDEAVOUR BLASTED OFF FROM FLORIDA ON A MISSION TO RETRIEVE A EUROPEAN SCIENCE SATELLITE FROM SPACE AND CONDUCT EXPERIMENTS IN A PRIVATELY OWNED CARGOBAY LABORATORY MAKING ITS DEBUT FLIGHT REBEL LEADER HUSEYNOV CLAIMED POWER IN THE FORMER SOVIET REPUBLIC OF AZERBAIJAN AS HIS FORCES ADVANCED TO THE SUBURBS OF THE CAPITAL BAKU HE SAID IT WAS UNACCEPTABLE FOR PARLIAMENT CHAIRMAN ALIEV TO TAKE OVER THE RUNNING OF THE GOVERNMENT FROM PRESIDENT ELCIBEY WHO FLED THE CAPITAL FRIDAY 9306220142 930622 AS US MULLS WORKERSAFETY MANDATE SOME STATES REQUIRE COMPANY ACTION BY JYOTI THOTTAM AND KEVIN G SALWEN STAFF REPORTERS OF THE WALL STREET JOURNAL A STRING OF STATES HAS BEGUN FORCING COMPANIES TO SET UP WORKERSAFETY COMMITTEES TO REDUCE INJURY RATES WHILE THE FEDERAL GOVERNMENT WRESTLES WITH WHETHER TO CREATE A SIMILAR NATIONAL MANDATE NEXT WEEK CONNECTICUT COMPANIES MUST BEGIN ESTABLISHING WORKERMANAGEMENT TEAMS TO INVESTIGATE ACCIDENTS EVALUATE PREVENTION PROGRAMS AND DETERMINE POSSIBLE SAFETY FIXES THE LAW APPLIES TO COMPANIES WITH AT LEAST 25 EMPLOYEES OR HIGHERTHANAVERAGE INJURY RATES SIMILAR OR TOUGHER LAWS ARE ALREADY ON THE BOOKS OR GOING INTO EFFECT IN SUCH STATES AS MINNESOTA OREGON AND NORTH CAROLINA THE LAWS ARE BEING ENACTED AS STATE LEGISLATURES ARE BEING ASKED BY BUSINESS AND STATE GOVERNMENTS TO SLASH WORKERS' COMPENSATION COSTS AT THE SAME TIME WORKER GROUPS LED BY UNIONS ARE SHOWING THAT THE PROGRAMS ARE SUCCESSFUL AT CUTTING CORPORATE INJURY AND DEATH RATES IT SEEMS LIKE SOMETHING OBVIOUS BUT IT HAS NOT BEEN SO OBVIOUS SAID MARGARET SEMINARIO DIRECTOR OF THE AFLCIO'S OCCUPATIONAL SAFETY AND HEALTH GROUP THIS IS NOT A RADICAL SOLUTION TO THE PROBLEMS THAT ARE OUT THERE THE PROBLEMS ARE PAINFULLY OBVIOUS NEARLY 10000 WORKERS ARE KILLED ON THE JOB EACH YEAR THOUGH MANY OF THOSE ARE IN MOTOR VEHICLE ACCIDENTS AT THE SAME TIME THE OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION THE GOVERNMENT'S WATCHDOG ON WORKER SAFETY HAS ONLY 1000 INSPECTORS A NUMBER MATCHED BY THE STATES THEY ARE RESPONSIBLE FOR KEEPING THE SAFETY STANDARDS HIGH AT SIX MILLION US BUSINESSES ON CAPITOL HILL EFFORTS TO REFORM THE 20YEAROLD OCCUPATIONAL SAFETY AND HEALTH ACT TO MANDATE WORKERSAFETY COMMITTEES HAVE STRUGGLED LAST YEAR IN THE FACE OF A VETO FROM PRESIDENT BUSH THE BILL DIED THIS YEAR THOUGH PROPONENTS' HOPES ARE HIGHER THE LEGISLATION STILL HASN'T MOVED REPUBLICANS ARE FIGHTING AGAINST GOVERNMENT MANDATES TO SET UP COMMITTEES PREFERRING INSTEAD THAT THE COMPANIES THEMSELVES HANDLE IT AND THE LABOR DEPARTMENT DELAYED MATTERS BY TAKING A NONCOMMITTAL STANCE IN FAVOR OF A TASK FORCE TO STUDY THE ISSUE SO STATES ARE MOVING AHEAD FRANK JOHNSON EXECUTIVE DIRECTOR OF THE MANUFACTURING ALLIANCE OF CONNECTICUT SAID SAFETY COMMITTEES ARE A NATURAL AS US COMPANIES STRIVE TO COMPETE OVERSEAS WORKPLACE SAFETY BECOMES AN ISSUE OF COMMON CONCERN INDEED UNION AND MANAGEMENT OFFICIALS CONTEND THAT THE ISSUE BRIDGES THE SOMETIMES HUGE GULF BETWEEN ORGANIZED LABOR AND CORPORATE OFFICIALS IT'S REALLY NOT AN ISSUE OF ORGANIZED NONORGANIZED SAID JOHN OLSON PRESIDENT OF THE CONNECTICUT AFLCIO EVERYONE AGREES THAT IT'S GOING TO SAVE MONEY AT SARGENT MANUFACTURING CO IN NEW HAVEN CONN SIX SAFETY COMMITTEES ALREADY HAVE BEEN MEETING MONTHLY TIME LOST DUE TO ACCIDENTS OR REPETITIVE STRESS INJURIES HAS FALLEN 20 SINCE LAST YEAR WHEN AN ERGONOMIC SAFETY COMMITTEE WAS FORMED SAID JOHN DWYER THE COMPANY'S DIRECTOR OF HUMAN RESOURCES IN SEVERAL STATES SIMILAR PROGRAMS HAVE PROVEN TRACK RECORDS OF REDUCING WORKPLACE INJURIES IN OREGON WHERE SAFETY TEAMS WERE FIRST REQUIRED IN 1990 AFTER THE LEGISLATURE TRIED TO CUT WORKERS' COMPENSATION COSTS THE STATE HAS SLASHED AVERAGE BASE PREMIUMS FOR SUCH COSTS BY DOUBLEDIGIT PERCENTAGES EACH YEAR THE STATE'S NATIONAL RANK FOR THE MOST COSTLY WORKERS' COMPENSATION HAS FALLEN TO 22 FROM EIGHT IN 1990 AT PORTLAND GENERAL ELECTRIC CO A UNIT OF PORTLAND GENERAL CORP THE TIME LOST BECAUSE OF INJURIES IN ITS UTILITIES SERVICE UNIT FELL ABOUT 15 IN THE PAST YEAR ONE OF THE TEAMS RESPONDED TO LONGTERM KNEE DISABILITIES SUFFERED BY REPAIR WORKERS FORCED TO KNEEL IN A GARAGE THOSE WORKERS NOW USE SEAT RESTS TO BRACE THEIR LEGS AND TAKE PRESSURE OFF THEIR KNEES BUT SOME SAFETY MANAGERS HAVE RESERVATIONS AT TECHTRONIX A PORTLAND ORE ELECTRONICS COMPANY STEVE BROWN MANAGER OF CORPORATE HEALTH AND SAFETY SAID THAT WHILE THE COMMITTEES PROBABLY ARE OF VALUE TO THE COMPANY THEY ALSO ARE VERY TIMECONSUMING AND TAKE A LOT OF LABOR OREGON'S LAW REQUIRES THAT EMPLOYEES BE PAID FOR THEIR TIME ON THE PANELS IN A HALFDOZEN OR SO OTHER STATES LEGISLATURES HAVE REFUSED TO MANDATE COMMITTEES REQUIRING INSTEAD THAT COMPANIES SET UP SAFETY AND HEALTH PROGRAMS TO EDUCATE EMPLOYEES AND MANAGERS IN CALIFORNIA FOR EXAMPLE ALL EMPLOYERS MUST SET UP AN INJURY AND ILLNESS PREVENTION PROGRAM INCLUDING IDENTIFICATION OF A RESPONSIBLE PERSON WORKER TRAINING AND COMMUNICATION OF HAZARDS TO WORKERS MICHIGAN HAS ACCIDENT PREVENTION PROGRAMS FOR CONSTRUCTION FIRMS AND SITES UNIONS WILL CONTINUE TO PUSH THE CLINTON ADMINISTRATION AND CONGRESS TO ADOPT MANDATORY SAFETY COMMITTEES IT'S FRUSTRATING THAT PEOPLE CAN'T LOOK BEYOND THEIR IDEOLOGY TO ADOPT PROPOSALS THAT MAKE SENSE THE AFLCIO'S MS SEMINARIO SAID BUT REPUBLICANS WORRY ABOUT ADDED BURDENS ON COMPANIES ONE THING IS CERTAIN REP WILLIAM GOODLING R PA THE RANKING REPUBLICAN ON THE HOUSE LABOR COMMITTEE SAID AT A RECENT HEARING THE BILL CONTAINS A HOST OF NEW MANDATES AND COSTS FOR EMPLOYERS WE CERTAINLY HAD BETTER UNDERSTAND WHAT WE'RE DOING BEFORE IMPOSING THOSE KINDS OF COSTS ON THE AMERICAN ECONOMY 9306220141 930622 BUSINESS BRIEF GUCCIO GUCCI SPA COMPANY SUES US AFFILIATE ALLEGING BILLS ARE UNPAID ITALIAN FASHION COMPANY GUCCIO GUCCI SPA HAS SUED ITS US RETAIL AFFILIATE GUCCI AMERICA INC CHARGING THAT IT IS OWED 588 MILLION IN UNPAID BILLS FOR MERCHANDISE SOLD TO GUCCI AMERICA IN A LAWSUIT FILED IN FEDERAL COURT IN MANHATTAN GUCCIO GUCCI ALLEGED THAT GUCCI AMERICA HAS FAILED TO PAY FOR MOST OF THE PRODUCTS IT ORDERED FROM GUCCIO GUCCI FROM JUNE 1991 TO THE PRESENT IN COURT PAPERS GUCCIO GUCCI SEEKS DAMAGES OF 639 MILLION WHICH INCLUDES THE COSTS OF INTEREST ON THE BILLS IN QUESTION A NEW YORK ATTORNEY REPRESENTING GUCCIO GUCCI DECLINED TO COMMENT ON GUCCIO GUCCI'S OWNERSHIP INTEREST IN GUCCI AMERICA GUCCIO GUCCI IS JOINTLY OWNED BY MAURIZIO GUCCI AND BAHRAINBASED INVESTCORP NEW YORKBASED GUCCI AMERICA WHICH CURRENTLY OPERATES 32 GUCCI STORES IN THE US AND CARRIBEAN DECLINED TO COMMENT ON THE SUIT ATTORNEYS FOR GUCCIO GUCCI ALSO DECLINED TO COMMENT 9306220140 930622 BUSINESS BRIEF HORN & HARDART CO COMPANY SEEKS TO CHANGE NAME TO HANOVER DIRECT INC HORN & HARDART CO SAID IT WILL SEEK SHAREHOLDER APPROVAL TO CHANGE ITS NAME TO HANOVER DIRECT INC THE FINAL STEP IN THE CATALOGRETAILER'S TWOYEAR RESTRUCTURING THE CHANGE TO BE CONSIDERED AT THE JULY 8 MEETING REFLECTS THE WEEHAWKEN NJ COMPANY'S BREAK WITH ITS RESTAURANTBUSINESS PAST HORN & HARDART CLOSED THE LAST OF THE AUTOMAT CAFETERIA FOOD SERVICE UNITS IN APRIL 1991 AND HAS SOLD OTHER RESTAURANT OPERATIONS THE COMPANY WHICH OPERATES 14 SPECIALTYRETAIL CATALOGS RECENTLY SIGNED AN AGREEMENT TO PURCHASE SAN FRANCISCO RETAILER GUMP'S AND ITS CATALOG OPERATION FOR THE FISCAL YEAR ENDED DEC 26 THE COMPANY HAD OPERATING PROFIT OF 1 MILLION ON REVENUE OF 5866 MILLION 9306220139 930622 INTERNATIONAL ALONGSIDE CHINA'S OFFICIAL EXCHANGES BOOMING ILLEGAL STOCK MARKET OPERATES BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG FIRST CHINA SURPRISED THE WORLD BY BECOMING THE FIRST COMMUNIST COUNTRY WITH STOCK EXCHANGES NOW ITS 94 LISTED COMPANIES SEEM TO BE JUST THE TIP OF THE ICEBERG THE NUMBER OF SHARES TRADED AND THE PLACES WHERE TRADES OCCUR MAY BE FAR MORE THAN OFFICIALS ACKNOWLEDGE THE OFFICIAL EXCHANGES IN SHENZHEN NEAR HONG KONG AND IN SHANGHAI HAVE SEEN TRADING VOLUME SAG SERIOUSLY THIS YEAR BUT REPORTS REACHING HONG KONG FROM AS FAR AWAY AS THE GRASSLANDS WEST OF MONGOLIA TELL OF A BOOMING TRADE ILLEGALLY DONE IN SHARES OF CASHSTARVED COMPANIES THAT HAVE BEEN DENIED BANK LOANS OR LISTINGS ON STOCK EXCHANGES NO ONE REALLY KNOWS THE SIZE OF CHINA'S MARKET IN LEGALLY AND ILLEGALLY TRADED SHARES BUT LET'S START WITH THE NUMBER OF COMPANIES THAT HAVE SHARES SAYS LAWRENCE ANG AN ANALYST AT SBCI FINANCE ASIA THERE ARE ABOUT 3000 AND THE STOCK OF MOST OF THOSE IS PROBABLY TRADED HE AND OTHER ANALYSTS SAY SOME CHINAWATCHERS WORRY THAT BEIJING'S ABILITY TO COORDINATE THE COUNTRY'S FINANCIAL SYSTEM COULD ERODE IF THOUSANDS OF COMPANIES COAX HOUSEHOLD SAVINGS INTO UNAUTHORIZED SHARES OTHERS SUGGEST THAT ILLEGAL TRADING COULD STUNT THE DEVELOPMENT OF SECURITIES REGULATIONS BROKERAGE FIRMS AND INSTITUTIONAL INVESTORS BEIJING HAS ENCOURAGED THOUSANDS OF STATEOWNED ENTERPRISES IN RECENT YEARS TO RESTRUCTURE THEMSELVES BY ISSUING STOCK THE GOVERNMENT MAY OWN MOST OF THEIR SHARES BUT THE POLICY IS SUPPOSED TO SEPARATE A COMPANY'S OWNERS FROM ITS MANAGERS IN HOPES OF IMPROVING CORPORATE EFFICIENCY SAYS THOMAS CHAN CHIEF OF THE CHINA BUSINESS CENTER AT HONG KONG POLYTECHNIC A SMALL PORTION OF THE NEW STOCK IS TYPICALLY DISTRIBUTED TO OTHER STATE COMPANIES OR EMPLOYEES BUT FINANCIAL AUTHORITIES HAVE PREVENTED ALMOST ALL THOSE SHARES FROM LISTING ON EITHER OF CHINA'S TWO OFFICIAL STOCK EXCHANGES THEY DON'T WANT TO FLOOD THE MARKET SAYS CHRISTINA KO SENIOR CHINA ANALYST AT MORGAN STANLEY ASIA LTD OTHERS ADD THAT THE EXCHANGES FAVOR LISTING LOCAL COMPANIES AND THAT LOCAL INVESTORS DOMINATE THEIR TRADING BECAUSE INVESTORS DON'T BUY SECURITIES THEY CAN'T SELL NEW SHAREHOLDERS ACROSS CHINA HAVE SPAWNED A BIZARRE WEB OF MARKETS TO TRADE SHARES OF UNLISTED COMPANIES THE MOST IMPRESSIVE RESULTS HAVE BEEN TWO SOPHISTICATED NATIONAL OVERTHECOUNTER TRADING SYSTEMS BASED IN BEIJING THE SECURITIES TRADING AUTOMATIC QUOTATION SYSTEM DEVELOPED IN 1989 TO TRADE BONDS NOW LISTS EIGHT SHARES THE NATIONAL ELECTRONIC TRADING SYSTEM HAS LISTED FOUR SHARES TRIAL OPERATIONS BEGAN IN MAY SHARES LISTED ON BOTH ARE SUPPOSED TO BE TRADED ONLY BETWEEN COMPANIES CONSIDERED TO BE LONGTERM INVESTORS SAYS MS KO BECAUSE THOSE INVESTORS DID LITTLE TRADING IN MAY THE SHARES HOVERED NEAR THE PRICES AT WHICH THEY HAD BEEN SOLD OFTEN ABOUT 15 TIMES ESTIMATED EARNINGS MEANWHILE THE LISTED CLASS A SHARES THAT INDIVIDUALS ARE ALLOWED TO TRADE WERE SELLING AT ABOUT 40 TIMES ESTIMATED EARNINGS ANALYSTS IN HONG KONG SAY MANY OF CHINA'S WEALTHIEST INDIVIDUAL INVESTORS LEAPED INTO CHEAPER STAQS AND NETS SHARES THE REGULATIONS GOVERNING THOSE SYSTEMS ARE SO LOOSE THAT WELLCONNECTED INDIVIDUALS EASILY OBTAINED LICENSES TO DO THAT SUCH TRADING THREATENS TO UNDERMINE CHINA'S NASCENT SECURITIES REGULATIONS FINANCIAL AUTHORITIES IN BEIJING ARE ALREADY CONCERNED THAT MANY OF THE OTC LISTED COMPANIES HAVE NOT COMPLIED VERY STRINGENTLY WITH REGULATIONS ON SUCH MATTERS AS ACCOUNTING SAYS DR CHAN MORGAN STANLEY ALSO NOTICED RECENTLY THAT A CONSORTIUM OF FOREIGN INVESTORS HAD USED THE OTC MARKET TO SKIRT CHINESE TAKEOVER LAWS BY BUYING 513 OF A DIESELENGINE MAKER WITHOUT MAKING A TENDER OFFER MEANWHILE THE ASHARE MARKETS MOST CLOSELY LINKED TO THE CLASS B SHARES THAT FOREIGNERS CAN BUY ARE WILTING AS CHINESE FUNDS RUSH TO THE OTC NETWORKS SINCE THE BEGINNING OF MAY THE CREDIT LYONNAIS SECURITIES ASIA INDEX OF SHANGHAI A SHARES SLIPPED MORE THAN 27 WHILE SHARES TRADED ON STAQS AND NETS HAVE JUMPED ABOUT 50 SAYS MS KO ALL THAT IS QUITE WELL ORGANIZED COMPARED WITH THE TANGLE OF STREET MARKETS THROUGHOUT CHINA WHERE SHARES ARE TRADED ALONGSIDE VEGETABLES SUCH WIDESPREAD ATTRACTION TO FREE CAPITAL MARKETS MIGHT SOUND ENCOURAGING BUT WESTERN INVESTMENT BANKERS WHO WORK IN CHINA WARN THAT ILLICITLY TRADED SHARES ARE ULTIMATELY DIFFICULT TO LIST OR SELL TO FOREIGN INVESTORS THE PRINCIPAL OBSTACLE IS THAT YOU DON'T KNOW WHAT PERCENTAGE OWNERSHIP OF A COMPANY YOUR SHARE ACTUALLY REPRESENTS EXPLAINS ONE WHO ASKED NOT TO BE IDENTIFIED 9306220137 930622 ONE THING THEY JUST WON'T DO IS SWEEP IT ALL UNDER THE CARPET BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL THE FLOORCLEANING BUSINESS IS GETTING DIRTY AFTER NEARLY A CENTURY OF MAKING DEVICES THAT CLEAN UP THE MESSES OF OTHERS THE 25 BILLION VACUUMCLEANER INDUSTRY IS MAKING A MESS OF ITS OWN WITH AN UNUSUAL COURTROOM BATTLE THE RAGING DISPUTE IS ABOUT CARPET CLEANABILITY THE DUSTUP BEGAN LAST MONTH WHEN ROYAL APPLIANCE MANUFACTURING CO THE MAKER OF DIRT DEVIL VACUUM CLEANERS SUED COMPETITOR HOOVER CO ROYAL SAYS INDUSTRY LEADER HOOVER A UNIT OF MAYTAG CORP HAS LAUNCHED A CAMPAIGN INTENTIONALLY CALCULATED TO DECEIVE CONSUMERS AND DENIGRATE ITS COMPETITORS THE ROOT OF ALL THIS EVIL AN INSIDIOUS CLEANING EFFICIENCY RATIO THAT HOOVER USES TO QUANTIFY A VACUUM'S SUCTION CAPABILITY PER AMP ROYAL PREFERS TO MEASURE A VACUUM CLEANER'S CLOUT IN AMPS ALONE AND IS VERY PROUD THAT ITS DIRT DEVILS ARE RATED AT LOTS OF AMPS ROYAL SAYS HOOVER'S RATIO WHICH INCLUDES NONAMP FACTORS SUCH AS THE AMOUNT OF DIRT REMOVED WAS DESIGNED TO GIVE THE FALSE IMPRESSION THAT HOOVER'S VACUUMS ARE MORE POWERFUL THAN DIRT DEVILS BUT IN A COUNTERSUIT FILED RECENTLY HOOVER CLAIMED THE AMPSONLY RATING FOR UPRIGHT CLEANERS IS WELL LESS THAN UPRIGHT THE DISPUTE IS A SERIOUS MATTER SAYS BRIAN GIRDLESTONE HOOVER'S PRESIDENT IT WILL FORCE PEOPLE TO ACCEPT A MORE MEANINGFUL MEASURE OF DIRTCLEANING EFFICIENCY LAST WEEK A US DISTRICT COURT DENIED ROYAL'S REQUEST FOR A TEMPORARY ORDER TO RESTRAIN HOOVER FROM USING ITS RATIO MEANWHILE THE VACUUM DEBATE IS SPREADING TWO OTHER VACUUM PRODUCERS HAVE SIDED WITH ROYAL ON THE CLEANABILITY QUESTION BUT HOOVER POINTS TO AN EDITORIAL IN THE JUNE ISSUE OF APPLIANCE MANUFACTURER TITLED TWO CHEERS FOR HOOVER THE EDITORIAL HELD BACK ON A THIRD CHEER ALL THIS MUDSLINGING HAS WORRIED SOME IN AN INDUSTRY WITH A CLEANLIVING REPUTATION THEY SEEMED TO GET ALONG REASONABLY WELL UNTIL NOW SAYS AN EDGY CLIFFORD WOOD DIRECTOR OF THE VACUUM CLEANER MANUFACTURERS ASSOCIATION ADDS GILBERT DORSEY PRESIDENT OF AB ELECTROLUX'S EUREKA CO THIS IS THE FIRST BROUHAHA WE'VE HAD IT CERTAINLY ISN'T PLEASANT SOME PEOPLE DON'T LIKE EITHER SIDE ED ANDERSON OWNER OF A PITTSBURGH VACUUMCLEANER STORE SAYS HE HAS DROPPED BOTH LINES I DON'T CARE FOR EITHER ONE OF THEM HE SAYS I JUST DON'T LIKE THE WAY THEY'RE BUILT 9306220136 930622 WHO'S NEWS DIED ROBERT A GOLOBIC 50 CHAIRMAN OF SPECTRANETICS CORP SUNDAY IN A FALL WHILE CLIMBING HUMBOLDT PEAK IN COLORADO'S SANGRE DE CRISTO MOUNTAINS 9306220135 930622 INTERNATIONAL EC ITS COMPETITIVENESS WANING ARGUES OVER TRIMMING SAFETY NET BY CHARLES GOLDSMITH AND PETER GUMBEL STAFF REPORTERS OF THE WALL STREET JOURNAL COPENHAGEN THE EUROPEAN COMMUNITY BEGAN AN AGONIZING DEBATE OVER ITS LACK OF COMPETITIVENESS IN RELATION TO THE US AND JAPAN BUT THERE ARE NO POLITICALLY EASY SOLUTIONS IN SIGHT IN FACT THE OPENING DAY OF A TWODAY SUMMIT OF EC LEADERS SHOWCASED ONCE AGAIN THE COMMUNITY'S FUNDAMENTAL DIVISIONS OVER ECONOMIC POLICY AND ESPECIALLY OVER WHETHER EUROPE'S EXTENSIVE SYSTEM OF SOCIAL PROTECTION HANDICAPS IT WITH ONEROUS COSTS BRITAIN FOR EXAMPLE USED THE DEBATE FOR A FRONTAL ATTACK ON THE FOLLY OF STRINGENT EC LABOR RULES WHILE DENMARK REJECTED ANY EMULATION OF A US MODEL AS AN INVITATION TO SOCIETAL PROBLEMS CRIME AND HOPELESSNESS WHILE GERMANY'S CHANCELLOR HELMUT KOHL ADVOCATED OPEN MARKETS AND LONGER WORKING HOURS FRENCH PRESIDENT FRANCOIS MITTERRAND RAGED AT WHAT HE CALLED UNFAIR COMPETITION FROM LOWCOST PRODUCERS ESPECIALLY IN ASIA AND STRESSED THE NEED FOR A UNITED EC FRONT AGAINST THE US IN WORLD TRADE TALKS IN AN EAGERLY AWAITED PRESENTATION THE EC COMMISSION PRESIDENT JACQUES DELORS UNVEILED AN EIGHTPART PLAN TO SPARK ECONOMIC REVIVAL IN EUROPE THE FRENCH SOCIALIST STEERED CLEAR OF ANY RADICAL RETHINKING OF EUROPE'S SOCIAL WELFARE SYSTEM AS SOME INDUSTRIALISTS HAVE URGED HIS PLAN FOCUSED INSTEAD ON INCREASED SPENDING ON RESEARCH AND DEVELOPMENT ENHANCED TRANSPORTATION AND TELECOMMUNICATIONS NETWORKS WITH ANNUAL SPENDING OF AT LEAST 35 BILLION EDUCATIONAL REFORMS AND JOB TRAINING OR PLACEMENT SCHEMES DESIGNED TO BOOST LABOR FLEXIBILITY HIS CHARTLADEN SPEECH ALSO CALLED FOR NEW TAXES ON SCARCE NATURAL RESOURCES AS A WAY TO REDUCE EXCESSIVE TAXES ON LABOR AND INCREASE EUROPE'S COMPETITIVENESS BEYOND THE EC'S IMMEDIATE ECONOMIC CRISIS WHICH INCLUDES PROJECTIONS OF A 05 DECLINE IN OUTPUT THIS YEAR AND 12 UNEMPLOYMENT IN 1994 MR DELORS SAID EUROPE'S LONGTERM STRUCTURAL PROBLEMS ARE EQUALLY PRESSING THE EC COMMISSION IS EXPECTED TO PREPARE A WHITE PAPER OUTLINING POLICY INITIATIVES TO BOOST COMPETITIVENESS IN TIME FOR THE DECEMBER SUMMIT OF EC LEADERS IN BRUSSELS THEIR NEXT REGULARLY SCHEDULED MEETING OR EVEN BEFORE FEARS OF DECLINING EUROPEAN COMPETITIVENESS WERE REINFORCED BY A NEW REPORT THAT GRAPHICALLY ILLUSTRATES HOW THE MOST EFFICIENT EC ECONOMY GERMANY IS ON THE WANE IN THE GENEVABASED WORLD ECONOMIC FORUM'S ANNUAL RANKING OF 22 INDUSTRIALIZED AND 15 NEWLY INDUSTRIALIZED COUNTRIES GERMANY HAS FALLEN TO NO 5 FROM NO 2 IN OVERALL COMPETITIVENESS IT HAS BEEN SURPASSED BY THE US DENMARK AND SWITZERLAND WHICH NOW RANK NO 2 NO 3 AND NO 4 RESPECTIVELY JAPAN IS STILL NO 1 DESPITE SLIPPING IN CERTAIN MEASURES SUCH AS EXECUTIVE OPTIMISM INTERNATIONALIZATION AND CONFIDENCE IN GOVERNMENT IN HIS SPEECH MR DELORS CITED THE DEBATE A DECADE AGO OVER EUROSCLEROSIS THE FEAR THAT EUROPE'S ECONOMIES HAD BECOME SO RIGID THEY NO LONGER FUNCTIONED PROPERLY HE DREW A PARALLEL BETWEEN THE COMING WHITE PAPER AND THE ONE IN 1985 THAT LAUNCHED THE EC'S SINGLE MARKET PROGRAM AFTER THE EARLY 1980S RECESSION BUT THERE ARE IMPORTANT DIFFERENCES IN THE TWO INITIATIVES THE 1985 PROGRAM WAS BASED ON A PACKAGE OF NEARLY 300 MEASURES PROPOSED IN BRUSSELS WHILE EC LEADERS SAY NEW STEPS TO BOOST GROWTH MUST BE GENERATED IN NATIONAL CAPITALS WITH THE BRUSSELSBASED COMMISSION AS COORDINATOR EC LEADERS GENERALLY GAVE MR DELORS'S PRESENTATION A POLITE BUT LUKEWARM RECEPTION ACKNOWLEDGING THAT THE PROBLEMS ARE DEEPSEATED AND NOT CONDUCIVE TO MIRACLE CURES AT COPENHAGEN WHAT PLAN A SENIOR BRITISH OFFICIAL SAID DISMISSIVELY HE MADE EIGHT POINTS I DON'T THINK WE REALLY SEE THOSE AS POINTING THE WAY TO REDUCING UNEMPLOYMENT IN THE COMMUNITY IN ANY MEANINGFUL WAY BECAUSE THE EC'S COMPETITIVE DISADVANTAGE ISN'T EFFECTIVELY CONFRONTED IN HIS ADDRESS TO OTHER EC LEADERS MR MAJOR SAID EC UNEMPLOYMENT STEMS LARGELY FROM RIGID EMPLOYMENT MARKETS AND HIGH NONWAGE LABOR COSTS SUCH AS SOCIAL BENEFITS AND HE STRESSED THAT THOSE PROBLEMS ARE FUELED BY MEDDLING EC MEASURES INCLUDING THOSE REGULATING PARTTIME WORK OR LIMITING THE WORKWEEK TO 48 HOURS HE CALLED FOR A NEW POLICY REQUIRING THE COMMISSION TO ANALYZE THE IMPACT ON COMPETITIVENESS OF ANY NEW PROPOSALS AFFECTING INDUSTRY OR EMPLOYMENT MR MAJOR SAID EC MANUFACTURING LABOR COSTS ROSE BY 4 A YEAR IN THE 1980S COMPARED WITH A 1 INCREASE IN THE US AND NO INCREASE AT ALL IN JAPAN SO AVERAGE MANUFACTURING LABOR COSTS ARE NOW 20 HIGHER IN THE EC THAN IN THE US OR JAPAN HE BEMOANED THE FACT THAT THE US ECONOMY CREATED FOUR TIMES AS MANY NEW JOBS IN THE 1980S AS DID THE EC ECONOMY EVEN THOUGH ECONOMIC GROWTH WAS ROUGHLY EQUIVALENT SUCH RESULTS HE SAID ARE AT LEAST PARTLY BLAMED ON THE SOCIAL COSTS OF EUROPEAN LABOR POLICIES THE DANISH FOREIGN MINISTER NIELS HELVEG PETERSEN DISMISSED ANY SUGGESTION THAT THE COMMUNITY COULD EMERGE FROM RECESSION THROUGH WHOLESALE DISMANTLING OF SOCIAL PROTECTION POLICIES WE DON'T SEE A WAY THROUGH THIS CRISIS BY INCREASING INSECURITY HE SAID I WOULDN'T ADVOCATE ANYTHING THAT RESEMBLES THE US MODEL IN THE US WE ARE SEEING SEVERE DEFECTS SOCIAL PROBLEMS CRIME AND HOPELESSNESS IN LARGE URBAN AREAS IT'S NOT SOMETHING WE SHOULD BE ENCOURAGED TO DO IT'S NOT THE WAY TO GO ONE OF THE MOST POTENTIALLY DIVISIVE ECONOMIC ISSUES THE FUTURE OF THE WORLD TRADE TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE WAS ALSO AIRED YESTERDAY FRANCE IS TRYING TO PERSUADE ITS EC PARTNERS TO OPPOSE A USEC ACCORD ON AGRICULTURE AGREED UPON LAST YEAR IN WASHINGTON FRENCH OFFICIALS ARE REPORTING SOME SUCCESS BUT THEY HAVE BEEN HORRIFIED BY A RECENT GERMAN AND US AGREEMENT NOT TO ENFORCE SANCTIONS AGAINST EACH OTHER'S TELECOMMUNICATIONS INDUSTRIES FRENCH PRESIDENT MITTERRAND MADE A STRONG PLEA IN THE SUMMIT FOR UNAMBIGUOUS SOLIDARITY AMONG THE EC NATIONS IN DEALING WITH THE US AND WHILE INSISTING THAT I AM NOT A PROTECTIONIST HE ALSO CALLED FOR STRICT ENFORCEMENT OF THE PRINCIPLE OF GIVING PREFERENCE TO EC PRODUCERS MR MITTERRAND'S STANCE WORRIES OTHER EC NATIONS ESPECIALLY BRITAIN THE NETHERLANDS AND GERMANY WHO NOTE THAT IN TIMES OF RECESSION FRANCE IS TEMPTED TO CREATE A FORTRESS EUROPE CLOSED TO IMPORTS 9306220134 930622 LETTERS TO THE EDITOR FAITH OF OUR FOUNDING FATHERS IN YOUR MAY 24 LETTERS TO THE EDITOR AN UNREASONABLE VIEW OF OUR FOUNDERS GREGORY P TURZA AND ROBERT Y WELLES COMPLETELY MISCONSTRUE THE IMPORT AND CONTENT OF THE OPINIONS OF THE FOUNDING FATHERS MR TURZA'S RELIANCE ON THE DEIST THOMAS JEFFERSON AS REPRESENTATIVE OF THE VIEWS OF AMERICA'S FOUNDERS AND THE FRAMERS OF THE CONSTITUTION IS MISPLACED JEFFERSON HAD LITTLE TO DO WITH THE FRAMING OF THE CONSTITUTION SINCE DURING THE CONSTITUTIONAL CONVENTION HE WAS IN PARIS AS AMBASSADOR TO FRANCE HE DENIED THE DIVINITY OF CHRIST AND THE AUTHORITY OF SCRIPTURE HE CONDEMNED PROTESTANT DOCTRINE TERMED PRESBYTERIANS AS FANATICS AND JUDAISM AS DEGRADING INJURIOUS AND REPULSIVE SUCH VIEWS WERE IN FACT ANATHEMA TO THE COMMONLY HELD BELIEFS AMONG THE POPULACE AND THE GOVERNING ELITE AS MICHAEL W MCCONNELL WROTE IN THE HARVARD LAW REVIEW IT IS A MISTAKE TO READ THE RELIGION CLAUSES UNDER THE NOW PREVALENT ASSUMPTION THAT THE GOVERNING INTELLECTUAL CLIMATE OF THE LATE EIGHTEENTH CENTURY WAS THAT OF DEISM AMERICA WAS IN THE WAKE OF A GREAT RELIGIOUS REVIVAL MR TURZA MAKES THE CLASSIC MISTAKE OF A BAD HISTORIAN HE TAKES HIS MODERNIST VIEW FINDS A FEW BIG NAMES THAT AGREE WITH HIM AND THEN PROJECTS THAT VIEW BACK TO EVERYBODY WHILE JEFFERSON'S VIRGINIA DID DISESTABLISH CHRISTIANITY THAT WAS DUE TO THE FACT THAT THE OFFICIAL TORY ANGLICAN CHURCH WAS ASSOCIATED WITH THE OUSTED BRITISH REGIME AND NOT DUE TO ANY ANTIRELIGIOUS FEELING JEFFERSON AND THE VIRGINIA MODEL REPRESENTED THE EXCEPTION NOT THE RULE HOWEVER MR TURZA TRIES TO USE THE EXCEPTION TO PROVE THE RULE IN FACT 11 OF THE 13 ORIGINAL STATE CONSTITUTIONS HAD STATESUPPORTED CHRISTIANITY AND/OR RESERVED OFFICEHOLDING TO CHRISTIANS MR JUSTICE STORY STATED THAT AT THE TIME OF THE CONSTITUTION THE GENERAL IF NOT UNIVERSAL SENTIMENT IN AMERICA WAS THAT CHRISTIANITY OUGHT TO RECEIVE ENCOURAGEMENT FROM THE STATE AS CONSTITUTIONAL SCHOLAR THOMAS CURRY NOTED IN HIS BOOK THE FIRST FREEDOMS THE VAST MAJORITY OF AMERICANS ASSUMED THEIRS WAS A CHRISTIAN IE PROTESTANT COUNTRY AND THEY AUTOMATICALLY EXPECTED THAT GOVERNMENT WOULD UPHOLD THE COMMONLY AGREED ON PROTESTANT ETHOS AND MORALITY MR TURZA'S RELIANCE ON THE TREATY WITH TRIPOLI IS ALSO MISPLACED THE ORIGINAL DRAFTS DID NOT CONTAIN THE PASSAGES THAT STATED THE GOVERNMENT OF THE UNITED STATES IS NOT IN ANY SENSE FOUNDED ON THE CHRISTIAN RELIGION EMPHASIS ADDED IT WAS ADDED LATER TO ASSUAGE THE CONCERNS OF THE MUSLIM GOVERNMENT OF TRIPOLI IN FACT ALL THE TREATY ASSURES IS THAT WHILE OURS WAS A CHRISTIAN NATION WE DID NOT HAVE A CHRISTIAN FEDERAL GOVERNMENT MR TURZA'S REAL MISTAKE IS FORGETTING THAT OUR EARLY NATION WAS A FEDERAL REPUBLIC A CONCEPT WE PAY LIP SERVICE TO TODAY BUT WHICH IS ALL BUT DEAD IN REALITY MR TURZA MISTAKENLY LOOKS TO THE EARLY FEDERAL GOVERNMENT ALONE IN DETERMINING OUR EARLY NATION'S VIEWS ON CHRISTIANITY WHEN IN FACT IT WAS THE INDIVIDUAL STATES THAT COULD AND DID ENCOURAGE AND SUPPORT CHRISTIANITY THOMAS JEFFERSON HIMSELF NOTED THIS IMPORTANT FEDERALSTATE DYNAMIC IN A LETTER HE WROTE TO REV SAMUEL MILLER IN 1808 CERTAINLY NO POWER TO PRESCRIBE ANY RELIGIOUS EXERCISE OR TO ASSUME AUTHORITY IN RELIGIOUS DISCIPLINE HAS BEEN DELEGATED TO THE GENERAL GOVERNMENT IT MUST THEN REST WITH THE STATES MOST OF THE FOUNDERS AND ALMOST ALL THE POPULACE CONSIDERED AMERICA A CHRISTIAN NATION AND THAT VIEW WAS FORWARDED THROUGH THE STATE CONSTITUTIONS AND LAWS ALEXIS DE TOCQUEVILLE PROBABLY SAID IT BEST I SOUGHT FOR THE GREATNESS AND GENIUS OF AMERICA IN HER COMMODIOUS HARBORS AND HER AMPLE RIVERS AND IT WAS NOT THERE IN HER FERTILE FIELDS AND BOUNDLESS PRAIRIES AND IT WAS NOT THERE IN HER RICH MINES AND HER VAST WORLD COMMERCE AND IT WAS NOT THERE NOT UNTIL I WENT TO THE CHURCHES OF AMERICA AND HEARD HER PULPITS AFLAME WITH RIGHTEOUSNESS DID I UNDERSTAND THE SECRET OF HER GENIUS AND POWER AMERICA IS GREAT BECAUSE SHE IS GOOD AND IF AMERICA EVER CEASES TO BE GOOD AMERICA WILL CEASE TO BE GREAT THE FIRST CONGRESS WHICH PASSED THE FIRST AMENDMENT ALSO REENACTED THE NORTHWEST ORDINANCE STATING THAT RELIGION MORALITY AND KNOWLEDGE BEING NECESSARY TO GOOD GOVERNMENT AND THE HAPPINESS OF MANKIND SCHOOLS AND THE MEANS OF SUPPORT SHALL FOREVER BE ENCOURAGED AND WHICH INCLUDED LAND GRANTS FOR CHURCH SCHOOLS THE FIRST CONGRESS ASKED PRESIDENT WASHINGTON TO ISSUE A THANKSGIVING DAY PROCLAMATION FOR A DAY OF PUBLIC THANKSGIVING AND PRAYER TO BE OBSERVED BY ACKNOWLEDGING WITH GRATEFUL HEARTS THE MANY AND SINGLE FAVORS OF ALMIGHTY GOD WASHINGTON ISSUED THE PROCLAMATION ALTHOUGH A FEW FOUNDERS WERE DEISTS MOST WERE NOT VIRTUALLY ALL ATTENDED CHURCH JOHN JAY AND CHARLES COTESWORTH PINCKNEY WERE LEADERS IN THE AMERICAN BIBLE SOCIETY JAY'S LAST WILL AND TESTAMENT STATED UNTO HIM WHO IS THE AUTHOR AND GIVER OF ALL GOOD I RENDER SINCERE AND HUMBLE THANKS FOR HIS MERCIFUL AND UNMERITED BLESSINGS AND ESPECIALLY FOR OUR REDEMPTION AND SALVATION BY HIS BELOVED SON PATRICK HENRY WROTE THAT HE REGRETTED HAVING GIVEN NO DECIDED AND PUBLIC PROOFS OF MY BEING A CHRISTIAN BUT INDEED MY DEAR CHILD THIS IS A CHARACTER WHICH I PRIZE FAR ABOVE ALL THIS WORLD HAS OR CAN BOAST HIS LAST WILL AND TESTAMENT CONCLUDED THIS IS ALL THE INHERITANCE I CAN GIVE TO MY DEAR FAMILY THE RELIGION OF CHRIST CAN GIVE THEM ONE WHICH WILL MAKE THEM RICH INDEED JOHN ADAMS WROTE IT IS RELIGION AND MORALITY ALONE WHICH CAN ESTABLISH THE PRINCIPLES UPON WHICH FREEDOM CAN SECURELY STAND A PATRIOT MUST BE A RELIGIOUS MAN HE SAID THAT CHRISTIANITY WAS A PRODUCT OF DIVINE REVELATION NEITHER SAVAGE NOR CIVILIZED MAN WITHOUT A REVELATION COULD EVER HAVE DISCOVERED OR INVENTED IT SAMUEL ADAMS WROTE I CAN SEE THAT WE CANNOT BETTER EXPRESS OURSELVES THAN BY HUMBLY SUPPLICATING THE SUPREME RULER OF THE WORLD SPEEDILY BRINGING ON THAT HOLY AND HAPPY PERIOD WHEN THE KINGDOM OF OUR LORD AND SAVIOR JESUS CHRIST MAY BE EVERYWHERE ESTABLISHED TO ASSERT THAT ALL OF THE FOUNDING FATHERS REPUDIATED RELIGION AND TOOK NOTHING ON FAITH IS AN INTOLERABLE DISTORTION OF HISTORY 9306220133 930622 MARKETING & MEDIA SMARTMONEY WILL BECOME MONTHLY MAGAZINE IN FALL NEW YORK SMARTMONEY THE WALL STREET JOURNAL MAGAZINE OF PERSONAL BUSINESS SAID IT WILL START PUBLISHING MONTHLY WITH THE NOVEMBER ISSUE SOONER THAN PLANNED CITING BETTERTHANEXPECTED READER AND ADVERTISER RESPONSE THE FIRST MONTHLY ISSUE WILL ARRIVE ON NEWSSTANDS OCT 19 THE MAGAZINE A JOINT VENTURE OF DOW JONES & CO AND HEARST CORP'S HEARST MAGAZINES GROUP HAD PLANNED TO REMAIN A BIMONTHLY THROUGH THE END OF 1993 DOW JONES PUBLISHES THE WALL STREET JOURNAL BARRON'S AND THE OTTAWAY GROUP OF COMMUNITY NEWSPAPERS SMARTMONEY SAID ITS ADVERTISING RATE BASE WAS INCREASED TO 400000 EFFECTIVE WITH THE AUGUST ISSUE FROM 300000 FOR THE FIRST THREE ISSUES OF THE YEAR ALTHOUGH AUDIT BUREAU OF CIRCULATION FIGURES HAVE NOT YET BEEN PUBLISHED THE MAGAZINE SAID ITS CIRCULATION IS EXCEEDING ITS RATE BASE AND AN INCREASE IS EXPECTED TO BE ANNOUNCED FOR 1994 9306220132 930622 COURT BACKS VW'S LOPEZ ON WORKERS WHO LEFT GM FRANKFURT A GERMAN COURT SAYS IT FOUND NOTHING UNFAIR ABOUT THE WAY J IGNACIO LOPEZ DE ARRIORTUA THE FORMER GENERAL MOTORS CORP PURCHASING CHIEF BROUGHT SEVEN COWORKERS WITH HIM WHEN HE JUMPED TO VOLKSWAGEN AG IN MARCH THE OPINION RELEASED YESTERDAY EXPLAINED THE COURT'S REJECTION LAST MONTH OF GM'S REQUEST TO BLOCK THE RIVAL AUTO MAKER FROM EMPLOYING THE SEVEN MEN FOR ONE YEAR IN ITS DECISION THE COURT SAID MR LOPEZ RADIATES SUCH CHARISMA THAT HIS FORMER COLLEAGUES FOLLOWED HIM WITHOUT ANY SPECIAL ENCOURAGEMENT THE COURT SAID THE SHIFT OF SO MANY TOP MANAGERS IN ONE MOVE WAS UNUSUAL BUT IT WASN'T SHOWN TO BE THE RESULT OF UNFAIR PRACTICES ON THE PART OF MR LOPEZ OR VW GM HAD CLAIMED THE MEN WERE LURED AS PART OF A LARGER CAMPAIGN TO WEAKEN IT YESTERDAY'S WRITTEN EXPLANATION ISN'T THE FINAL WORD HOWEVER THE CASE IS STILL TO BE JUDGED ON ITS MERITS A SPOKESMAN FOR GM EUROPE SAID THE COMPANY EXPECTS THE CASE TO BE HEARD THIS FALL THIS CASE IS SEPARATE FROM THE ESCALATING LEGAL BATTLE OVER ALLEGATIONS THAT MR LOPEZ AND HIS COLLEAGUES CARTED OFF HOARDS OF SENSITIVE GM DOCUMENTS MR LOPEZ DENIES HE TOOK PROPRIETARY INFORMATION TO VW BUT A GERMAN PROSECUTOR IS INVESTIGATING THE CHARGES THE OPINION RELEASED YESTERDAY ALSO HAS NO BEARING ON AN EARLIER MOTION WON BY GM BLOCKING VW AND MR LOPEZ FROM HIRING ANY MORE GM EXECUTIVES 9306220130 930622 BUDGET DEFICIT NARROWED IN MAY FROM YEAR EARLIER WASHINGTON THE FEDERAL GOVERNMENT POSTED A 3696 BILLION BUDGET DEFICIT IN MAY COMPARED WITH A 4677 BILLION DEFICIT A YEAR EARLIER LAST MONTH'S DEFICIT FOLLOWED A SURPLUS OF 809 BILLION IN APRIL THE GOVERNMENT GENERALLY HAS A BUDGET SURPLUS IN APRIL THE MONTH TAX RETURNS ARE DUE IN ITS MONTHLY STATEMENT THE TREASURY SAID RECEIPTS TOTALED 7076 BILLION LAST MONTH COMPARED WITH 6219 BILLION A YEAR EARLIER AND 13212 BILLION IN THE PREVIOUS MONTH OUTLAYS TOTALED 10772 BILLION LAST MONTH COMPARED WITH 10896 BILLION A YEAR EARLIER AND 12403 BILLION THE MONTH BEFORE FOR THE FISCAL YEAR THAT BEGAN IN OCTOBER THE DEFICIT TOTALED 21170 BILLION THROUGH MAY COMPARED WITH A 23154 BILLION BUDGET GAP FOR THE YEAREARLIER PERIOD THE TREASURY SAID THAT LAST MONTH THE GOVERNMENT PAID 1742 BILLION IN INTEREST ON THE FEDERAL DEBT 9306220129 930622 WHO'S NEWS AMERICAN HOME PRODUCTS CORP AMERICAN HOME PRODUCTS CORP NEW YORK JOHN B ADAMS 52 YEARS OLD WAS NAMED VICE PRESIDENT FOR CORPORATE DEVELOPMENT AT THE PHARMACEUTICAL HEALTHCARE AND FOODPRODUCTS CONCERN MR ADAMS WHOSE POSITION IS NEWLY CREATED HAD BEEN DIRECTOR OF CORPORATE DEVELOPMENT AT THE COMPANY 9306220128 930622 FINANCING BUSINESS JONES INTERCABLE INC JONES INTERCABLE INC ENGLEWOOD COLO SAID IT FILED A SHELF REGISTRATION WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 500 MILLION OF DEBT SECURITIES AND SIX MILLION COMMON SHARES THE CABLETV OPERATOR SAID PROCEEDS FROM ANY OFFERINGS ARISING FROM THE SHELF REGISTRATION COULD BE USED TO MAKE ACQUISITIONS OF DOMESTIC CABLETV SYSTEMS AND INVESTMENTS IN INTEGRATED CABLE/TELEPHONE SYSTEMS IN BRITAIN JONES INTERCABLE WHICH HAS CABLE OPERATIONS IN 20 STATES AND THREE COUNTRIES SAID IT CURRENTLY HAS NO SPECIFIC PLANS FOR A DEBT OR STOCK OFFERING 9306220127 930622 BUSINESS BRIEF TRISTAR REACHES PACT TO SETTLE HOLDER SUIT FOR 95 MILLION DEBT SAN ANTONIO TRISTAR CORP SAID IT REACHED AN AGREEMENT INPRINCIPLE TO SETTLE A CLASS ACTION SHAREHOLDER SUIT FOR 95 MILLION BUT BEFORE THE COSMETICS CONCERN CAN COMPLETE THE SETTLEMENT WHICH STEMS FROM ITS FAILURE TO DISCLOSE THAT ITS MAIN SUPPLIER HAD BECOME ITS MAJORITY SHAREHOLDER IT MUST GET FORMAL APPROVAL FROM THE PLAINTIFFS THE COURT AND THE COMPANY'S BOARD IT MUST ALSO OBTAIN WAIVERS FROM ITS BANK LENDER WHICH EARLIER TOLD THE COMPANY ITS LINE OF CREDIT WON'T BE EXTENDED PAST AUG 31 AND THAT ITS DEBT WILL BE DUE IN FULL ON THAT DATE TRISTAR WHICH SAID IT INTENDS TO PAY THE SETTLEMENT WITH BORROWINGS HASN'T FOUND A REPLACEMENT LINE OF CREDIT THE COMPANY FORMERLY KNOWN AS ROSS COSMETICS DISTRIBUTION CENTERS INC SAID THE SETTLEMENT IF COMPLETED WILL WIDEN ITS ESTIMATED LOSS FOR THE THIRD QUARTER ENDED MAY 31 THE COMPANY WOULDN'T MAKE A SPECIFIC ESTIMATE BUT SAID IT EXPECTS TO POST AN OPERATING LOSS FOR THE PERIOD DUE TO SLUMPING SALES BEFORE THE EFFECTS OF THE SETTLEMENT TRISTAR'S LEGAL PROBLEMS ALL RELATE TO THE COMPANY'S ADMISSION LAST OCTOBER FOUR MONTHS AFTER THE SEC LAUNCHED ITS PROBE THAT IT HAD IGNORED DISCLOSURE REQUIREMENTS IN ALLOWING ITS MAIN SUPPLIER S&J PERFUME CO LONDON TO SECRETLY OBTAIN CONTROL OF 63 OF ITS STOCK TWO FAMILIES BOTH NAMED SHETH FROM DUBAI WHO CONTROL S&J HAVE AGREED TO PUT UP 14 MILLION TRISTAR SHARES AS COLLATERAL ON A LOAN TO PAY THE 95 MILLION SETTLEMENT IN EXCHANGE TRISTAR SAID IT WILL ISSUE TO THE FAMILIES 10YEAR WARRANTS FOR TWO MILLION SHARES TRISTAR SAID THAT THE FAMILIES CAN CANCEL THE AGREEMENT IF THE AVERAGE CLOSING PRICE OF ITS STOCK DURING THE NEXT FIVE DAYS EXCEEDS BY MORE THAN 20 THE PRICE DURING THE PRECEDING FIVE DAYS IN LATE TRADING ON THE NATIONAL OVERTHECOUNTER MARKET TRISTAR STOCK CLOSED AT 575 A SHARE DOWN 50 CENTS OR 8 9306220126 930622 BUSINESS BRIEF CUSTOMERS AT SYRACUSE NY TACO BELL SHOWING SYMPTOMS OF FOOD POISONING AT LEAST 50 PEOPLE REPORTED SYMPTOMS OF FOOD POISONING AFTER EATING AT A TACO BELL RESTAURANT IN SYRACUSE NY ACCORDING TO LOCAL HEALTH AUTHORITIES THE FASTFOOD CHAIN A UNIT OF PEPSICO INC CLOSED THE RESTAURANT ON SUNDAY AFTER THE FIRST CASE WAS CONFIRMED AS SALMONELLA SINCE THEN A TOTAL OF 11 CASES HAVE BEEN CONFIRMED AND THREE PEOPLE HAVE BEEN HOSPITALIZED ACCORDING TO DR DAVID BRITTAIN MEDICAL DIRECTOR OF ONONDAGA COUNTY'S HEALTH DEPARTMENT THE INCIDENT WAS ISOLATED ACCORDING TO A SPOKESWOMAN AT TACO BELL SHE SAID NO OTHER RESTAURANTS IN THE TACO BELL CHAIN HAD EVER REPORTED A SALMONELLA CASE TACO BELL REOPENED THE SYRACUSE RESTAURANT ON MONDAY AFTER DISPOSING OF ALL ITS FOOD CLEANING ALL THE EQUIPMENT AND ASKING THE 20 STORE EMPLOYEES NOT TO COME TO WORK UNTIL THEY TESTED NEGATIVE FOR THE AILMENT THE SPOKESWOMAN SAID THIS HAS NOTHING TO DO WITH STORE CLEANLINESS SAID THE SPOKESWOMAN WE PASSED RECENT INSPECTIONS WITH FLYING COLORS AT ST JOSEPH HOSPITAL IN SYRACUSE DR ETHAN FLACKS SAID THE EMERGENCY ROOM HAS SEEN 30 CASES OF FOOD POISONING FROM PEOPLE WHO ATE AT THE TACO BELL RESTAURANT AND THE MAJORITY HAVE BEEN CONFIRMED AS SUFFERING FROM THE EFFECTS OF SALMONELLA HEALTH INSPECTORS FOR ONONDAGA COUNTY VISITED THE RESTAURANT TWICE OVER THE WEEKEND BUT FOUND NO SUBSTANTIVE VIOLATIONS DR BRITTAIN SAID WE DON'T KNOW IF IT WAS A PROCEDURE AN EMPLOYEE OR THE FOOD HE SAID HE SAID TEST RESULTS HAVEN'T BEEN RECEIVED FOR THE WORKERS ALTHOUGH A COUPLE OF THEM HAVE SUFFERED FROM SYMPTOMS OF FOOD POISONING MOST OF THE PEOPLE WHO CALLED INTO LOCAL AUTHORITIES SAID THEY ATE TACOS OR NACHOS AT THE TACO BELL LAST WEDNESDAY OR THURSDAY ACCORDING TO CONNIE BARLOW A NURSE WITH THE COUNTY HEALTH DEPARTMENT NONE OF THE NINE OTHER TACO BELLS IN THE AREA HAVE HAD SUCH REPORTS HEALTH OFFICIALS SAID THIRTY INGREDIENTS FROM THE SUSPECT RESTAURANT ARE NOW BEING TESTED BY THE STATE HEALTH DEPARTMENT WHICH IS EXPECTED TO REPORT ITS RESULTS IN TWO TO FOUR DAYS HEALTH OFFICIALS SAID SALMONELLA CAN RESULT IN DIARRHEA FEVERS HEADACHES DEHYDRATION AND NAUSEA THE BACTERIA CAN BE CARRIED BY RESTAURANT WORKERS WHO HAVEN'T WASHED THEIR HANDS OR BY UNDERCOOKED FOODS ESPECIALLY HIGHPROTEIN FOODS SUCH AS MEAT OR EGGS 9306220124 930622 WHO'S NEWS PHARMACY MANAGEMENT SERVICES INC PHARMACY MANAGEMENT SERVICES INC TAMPA FLA W SEYMOUR HOLT 63 YEARS OLD WAS ELECTED TO THE BOARD OF THIS HEALTH COSTCONTAINMENT CONCERN EXPANDING THE BOARD TO FIVE MEMBERS MR HOLT RETIRED LAST MONTH AS VICE PRESIDENT OF HEALTHCARE ACCOUNTS AND ADMINISTRATION FOR DISTA PRODUCTS CO A UNIT OF DRUG COMPANY ELI LILLY & CO INDIANAPOLIS W SEYMOUR HOLT RECENTLY ELECTED TO THE BOARD OF PHARMACY MANAGEMENT SERVICES INC PREVIOUSLY SERVED AS A VICE PRESIDENT OF ELI LILLY & CO BASED ON INFORMATION PROVIDED BY PHARMACY MANAGEMENT AN ITEM IN TUESDAY'S WHO'S NEWS COLUMN INCORRECTLY STATED THAT MR HOLT HAD SERVED AS A VICE PRESIDENT AT ELI LILLY'S DISTA PRODUCTS CO UNIT 9306220123 930622 BUSINESS BRIEF SUN CO RADNOR CORP UNIT PLANS SALE OF COMMERCIAL PROPERTIES SUN CO PHILADELPHIA CONTINUING ITS DIVESTMENT OF REALESTATE HOLDINGS SAID ITS RADNOR CORP UNIT AGREED TO SELL CERTAIN COMMERCIAL PROPERTIES TO ATLANTA AMERICAN PROPERTIES INC FOR ABOUT 200 MILLION THE TRANSACTION EXPECTED TO BE COMPLETED BEFORE OCT 15 WON'T AFFECT SUN'S CURRENT INCOME THE PROCEEDS WILL BE USED TO REDUCE RADNOR'S DEBT SUN SAID INCLUDING THIS SALE THE PHILADELPHIA PETROLEUMREFINING AND MARKETING COMPANY HAS ABOUT HALF OF ITS REALESTATE ASSETS VALUED AT 500 MILLION TO SELL THE COMPANY WROTE DOWN ITS REALESTATE HOLDINGS IN 1991 BY ABOUT 270 MILLION RESULTING IN HOLDINGS VALUED AT ABOUT 1 BILLION ATLANTA AMERICAN IS A CLOSELY HELD REALESTATE HOLDING AND INVESTMENT COMPANY IN CHARLOTTE NC 9306220122 930622 WHO'S NEWS MARVEL ENTERTAINMENT GROUP INC MARVEL ENTERTAINMENT GROUP INC NEW YORK WILLIAM JEMAS JR 35 YEARS OLD WAS NAMED VICE PRESIDENT OF ENTERTAINMENT AND BUSINESS DEVELOPMENT AT FLEER CORP A UNIT OF THIS COMIC BOOK TRADING CARD AND TOY CONCERN THE NEW UNIT WILL DEVELOP AND MARKET SPORTS AND ENTERTAINMENT PRODUCTS MR JEMAS HAD BEEN VICE PRESIDENT OF BUSINESS DEVELOPMENT FOR THE NATIONAL BASKETBALL ASSOCIATION 9306220121 930622 WHO'S NEWS BOWATER INC BOWATER INC GREENVILLE SC ROBERT C LANCASTER 47 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THIS PAPER AND PULP COMPANY MR LANCASTER WHO HAD BEEN SENIOR VICE PRESIDENT FINANCE SUCCEEDS RICHARD D MCDONOUGH 62 AS CHIEF FINANCIAL OFFICER MR MCDONOUGH WILL CONTINUE AS VICE CHAIRMAN ADDITIONALLY DAVID G MAFFUCCI 42 WAS NAMED A VICE PRESIDENT AND WILL CONTINUE AS TREASURER MICHAEL F NOCITO 38 WAS NAMED A VICE PRESIDENT AND CONTROLLER HE HAD BEEN CONTROLLER OF THE COMPANY'S SOUTHERN DIVISION IN CALHOUN TENN MESSRS MAFFUCCI AND NOCITO WILL REPORT TO MR LANCASTER ALL THREE APPOINTMENTS ARE EFFECTIVE JULY 1 BOWATER RECENTLY RELOCATED ITS CORPORATE HEADQUARTERS FROM DARIEN CONN 9306220120 930622 CANADIANS REPORT STRONGER ECONOMY IN FIRST QUARTER BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S GROSS DOMESTIC PRODUCT ROSE 09 IN THE FIRST QUARTER FROM THE PREVIOUS THREE MONTHS SPURRED BY STRONG EXPORTS TO THE US THE JANUARYMARCH PERIOD WAS THE EIGHTH CONSECUTIVE QUARTER IN WHICH CANADA'S GDP ROSE GDP IS THE TOTAL VALUE OF THE NATION'S OUTPUT OF GOODS AND SERVICES THE LATEST QUARTER'S INCREASE WAS EQUIVALENT TO AN ANNUAL GROWTH RATE OF 38 FIRSTQUARTER EXPORTS OF GOODS AND SERVICES CLIMBED 14 IN VOLUME FROM THE PREVIOUS THREE MONTHS TO ACCOUNT FOR A THIRD OF GDP ACCORDING TO DATA COMPILED BY STATISTICS CANADA THE US TOOK MORE THAN 80 OF CANADA'S MERCHANDISE EXPORTS IN THE THREEMONTH PERIOD CONSUMER SPENDING ALSO GAVE A BOOST TO GDP IN THE FIRST QUARTER RISING 06 FROM THE PREVIOUS THREE MONTHS CONSUMER SPENDING WAS ENCOURAGED BY A TWOPERCENTAGEPOINT DROP IN SHORTTERM INTEREST RATES DURING THE PERIOD SEPARATELY STATISTICS CANADA REPORTED THAT RETAIL SALES IN APRIL ROSE 1 FROM MARCH LED BY A 38 GAIN IN AUTO SALES GEORGE SABA CHIEF ECONOMIST AT MONTREAL TRUST CO SAID FIRSTQUARTER GDP WAS ALSO BOOSTED BY A 23 RISE IN SPENDING ON MACHINERY AND EQUIPMENT HE ATTRIBUTED THE RISE TO AN EXTENSIVE RESTRUCTURING OF CANADIAN INDUSTRY BUT MR SABA SAID THE ECONOMY'S GROWTH PROSPECTS REMAIN CLOUDED BY A SLUGGISH JOB MARKET WHICH HAS WEAKENED THE OUTLOOK FOR CONSUMER SPENDING EMPLOYMENT DECLINED IN APRIL AND MAY AND THE UNEMPLOYMENT RATE IS CURRENTLY 114 OF THE WORK FORCE MICHAEL GREGORY SENIOR ANALYST AT CIBC WOOD GUNDY CORP PREDICTED CANADA'S GDP WILL SHOW SLOWER GROWTH IN THE APRILJUNE QUARTER IN RESPONSE TO WEAKER FIRSTQUARTER GROWTH IN THE US ITS MAJOR EXPORT MARKET THE US ECONOMY GREW AT AN ANNUAL RATE OF ONLY 09 IN THE FIRST QUARTER THE GDP DATA SHOWED LITTLE INFLATIONARY PRESSURE IN CANADA THE GDP'S FIXEDWEIGHT PRICE INDEX A BROAD MEASURE OF INFLATION ROSE ONLY 04 IN THE FIRST QUARTER FROM THE PREVIOUS THREE MONTHS OR AT AN ANNUAL RATE OF 16 STATISTICS CANADA ALSO REPORTED THAT CANADA'S DEFICIT ON THE CURRENT ACCOUNT OF ITS INTERNATIONAL BALANCE OF PAYMENTS WIDENED IN THE FIRST QUARTER TO 596 BILLION CANADIAN DOLLARS US468 BILLION FROM C586 BILLION IN THE PREVIOUS THREE MONTHS THE CURRENT ACCOUNT IS A FINANCIAL ACCOUNTING OF CANADA'S TRADE IN GOODS AND SERVICES IT ALSO INCLUDES CROSSBORDER INVESTMENT INCOME FLOWS SUCH AS INTEREST AND DIVIDEND PAYMENTS 9306220119 930622 WHO'S NEWS INTERACTIVE NETWORK INTERACTIVE NETWORK MOUNTAIN VIEW CALIF GARY HOWARD A VICE PRESIDENT AT TELECOMMUNICATIONS INC WAS NAMED TO A NEW SEAT ON THE BOARD OF THE ENTERTAINMENTSERVICE CONCERN INCREASING THE BOARD'S SIZE TO NINE MEMBERS 9306220118 930622 MARKETSCAN SUNSCREEN MAKERS TOUT PRICEY PROTECTION BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL HAILING THE ONSET OF SUMMER WITH WARNINGS OF SKIN CANCER AND PREMATURE AGING SUNSCREEN MARKETERS ARE JOSTLING ONE ANOTHER TO OFFER THE LATEST PROTECTION THE MARKET LEADERS HAVE CHOSEN SHARPLY DIVERGENT STRATEGIES PROCTER & GAMBLE CO FOR EXAMPLE IS BANKING ON CLAIMS THAT A LONGERLASTING BAIN DE SOLEIL FORMULA PROVIDES BETTER VALUE SCHERINGPLOUGH CORP ON THE OTHER HAND IS ATTEMPTING TO CREATE YET ANOTHER NEW SUNSCREEN NICHE WITH ITS SHADE UVAGUARD THE COMPANY SAYS THE PRODUCT PROTECTS AGAINST ULTRAVIOLET A RAYS WHICH HAVE BEEN IMPLICATED IN THE AGING OF SKIN SHADE UVAGUARD COSTS ALMOST 10 A BOTTLE INDEED THIS SEASON PRICES OF SUNSCREEN PRODUCTS HAVE CLIMBED ALONG WITH ESCALATING SPF RATINGS AND MANY CONSUMERS ARE SAYING THAT THE COST OF SAFER SUNBATHING HAS BECOME TOO STEEP IN CHOOSING BETWEEN SAY COPPERTONE WATERPROOF MOISTURIZING SUNBLOCK SPF 25 OR BAIN DE SOLEIL TROPICAL DELUXE LOTION SPF 4 SHOPPERS ARE SIMPLY SCANNING THE PRICE TAGS THERE'S NO DOUBT ABOUT IT PRICE WAS A FACTOR IN THE CATEGORY ALL ACROSS OUR LINES SAYS KURT BRYKMAN SENIOR DIRECTOR OF SUNCARE MARKETING FOR SCHERINGPLOUGH THE MARKET LEADER WITH SUCH BRANDS AS COPPERTONE AND SHADE ACCORDING TO DATA GATHERED BY INFORMATION RESOURCES INC'S INFOSCAN SERVICE SALES OF SCHERINGPLOUGH'S MIDPRICE COPPERTONE BRAND JUMPED 17 TO 886 MILLION IN THE YEAR ENDED MAY 30 1993 MARKET SHARE INCREASED A HALF A PERCENTAGE POINT TO 265 SUN PHARMACEUTICALS CORP'S VALUEPRICED BANANA BOAT LINE GREW EVEN FASTER WITH SALES SOARING 449 TO 306 MILLION WE'RE WHERE THE CONSUMER PERCEIVES THE SUNSCREEN MARKET TO BE IN THE 4 TO 6 RANGE SAYS KEN MEEKER VICE PRESIDENT OF MARKETING AT SUN PHARMACEUTICALS POMPANO BEACH FLA MANY OF THE MASSVOLUME BRANDS ARE IN THE 7 8 EVEN 9 RANGE AND THAT SHOCKS CONSUMERS WHILE SKINCANCER FEARS HELPED BOOST GROWTH OF THE ENTIRE SUNCARE CATEGORY 146 TO 3349 MILLION FOR THE YEAR ENDED MAY 30 SALES OF P&G'S NO2RANKED BAIN DE SOLEIL KNOWN FOR ITS FRENCH RIVIERA IMAGE AND EQUALLY HIGHTONE PRICES INCREASED MORE SLOWLY RESULTING IN A MARGINAL LOSS OF MARKET SHARE THIRDRANKED HAWAIIAN TROPIC A PREMIUMPRICED LINE FROM TANNING RESEARCH LABORATORIES INC ALSO SUFFERED A SMALL DROP IN MARKET SHARE FOR THE SAME PERIOD INDUSTRY EXECUTIVES TRACE CONSUMERS' PRICE SENSITIVITY TO UNCHECKED PRODUCT PROLIFERATION IN RECENT YEARS ACCORDING TO PROCTER & GAMBLE BETWEEN JULY 1989 AND JUNE 1991 THE NUMBER OF DIFFERENT SUNCARE FORMULATIONS ON THE MARKET MEASURED IN STOCK KEEPING UNITS OR SKUS SURGED 48 WHILE CONSUMPTION OF SUNSCREEN PRODUCTS GREW ONLY 2 IN THAT TWOYEAR PERIOD THE CATEGORY IS VERY CONFUSING AND OVERPRICED SAYS A P&G SPOKESMAN SOME STORES ARE CARRYING ABOUT 500 SKUS WHEN THE AVERAGE CONSUMER ONLY BUYS A COUPLE OF BOTTLES A YEAR ACCORDINGLY COMPANIES HAVE BEEN TRYING TO PARE PRODUCT LINES RECENTLY PROCTER & GAMBLE WHITTLED ITS BAIN DE SOLEIL LINE DOWN TO 11 PRODUCT VARIATIONS FROM 18 SCHERINGPLOUGH SLASHED ITS SUNSCREEN LINE BY 20 IN 1990 FROM 70 SKUS A NUMBER IT IS STICKING WITH BY ELIMINATING POOR PERFORMERS WHEN IT INTRODUCES NEW PRODUCTS ONE OF THESE NEW PRODUCTS SHADE UVAGUARD IS BEING POSITIONED AS A LEAP FORWARD IN SUN PROTECTION UP TO NOW MOST SUNCREENS HAVE TARGETED ULTRAVIOLET B OR UVB RAYS WHICH CAUSE SUNBURN SUN PROTECTION FACTOR OR SPF RATINGS ON LABELS REFER ONLY TO UVB RAYS THEY DENOTE HOW MANY TIMES LONGER USERS CAN REMAIN IN THE SUN BEFORE BURNING THAN IF THEY WERE UNPROTECTED CONCERN ABOUT UVA RAYS IS SO NEW THAT THE FOOD AND DRUG ADMINISTRATION HASN'T EVEN WRITTEN LABELING STANDARDS FOR UVABLOCKING PRODUCTS YET INDEED SCHERINGPLOUGH HAD TO INVEST TIME AND MONEY OBTAINING A NEWDRUG APPLICATION FOR SHADE UVAGUARD'S ACTIVE INGREDIENT AVOBENZONE BUT FROM THE CONSUMERS' STANDPOINT THE UVA CATEGORY ALREADY LOOKS CROWDED BECAUSE MOST COMMONLY USED SUNSCREEN INGREDIENTS PROVIDE A MEASURE OF UVA PROTECTION NEARLY EVERY MAJOR COMPETITOR NOW BOASTS OF UVA PROTECTION ON ITS LABELS IN THE ABSENCE OF FDA LABELING STANDARDS THEY ARE FREE TO DO SO EVEN ANOTHER SCHERINGPLOUGH PRODUCT ITS NEW COPPERTONE KIDS 30 STEALS SOME OF SHADE UVAGUARD'S THUNDER WITH ITS PROMISE TO KEEP KIDS PROTECTED FROM THE SUN'S BURNING UVA AND UVB RAYS NOR IS SHADE UVAGUARD THE ONLY PRODUCT CLAIMING TO OFFER MORE EFFECTIVE UVA PROTECTION PHOTOPLEX MADE BY HERBERT LABORATORIES INC A UNIT OF ALLERGAN INC IN IRVINE CALIF CONTAINS THE SAME ACTIVE INGREDIENT IN THE YEAR ENDED MAY 30 ITS MARKET SHARE WAS FLAT AT 1 BUT SHADE UVAGUARD'S BIGGEST HURDLE MAY BE ITS COST AT AN AVERAGE RETAIL PRICE OF 999 PER FOUROUNCE BOTTLE IT IS ONE OF THE MOST EXPENSIVE SUNSCREENS ON THE MASS MARKET EXECUTIVES AT SCHERINGPLOUGH WHICH DEVOTED TWO YEARS TO GETTING REGULATORY APPROVAL FOR SHADE UVAGUARD SAY THE PRODUCT IS DIFFERENT ENOUGH TO WARRANT ITS PRICE SCHERINGPLOUGH IS SPENDING 6 MILLION TO MARKET SHADE UVAGUARD TWICE AS MUCH AS AN AVERAGE SUNSCREEN LAUNCH THE COMPANY SAYS ITS SALES REPRESENTATIVES ARE CALLING ON TWOTHIRDS OF THE NATION'S DERMATOLOGISTS THREE TIMES A YEAR REMINDING THEM ABOUT SHADE UVAGUARD WE'RE COUNTING ON DOCTORS TO COMMUNICATE THE BENEFITS OF THE PRODUCT TO CONSUMERS SAYS MR BRYKMAN SOME SCIENTISTS VOICE CAUTION HOWEVER WHILE SHADE UVAGUARD'S ACTIVE INGREDIENT DOES BLOCK MORE OF THE UVA SPECTRUM THAN CONVENTIONAL SUNSCREENS THERE IS NO AGREEMENT AS TO HOW MUCH UVA PROTECTION THE AVERAGE PERSON NEEDS SAYS VINCENT DELEO DIRECTOR OF ENVIRONMENTAL DERMATOLOGY AT NEW YORK'S COLUMBIAPRESBYTERIAN MEDICAL CENTER IF YOU'RE A NORMAL INDIVIDUAL IT REALLY IS QUESTIONABLE AS TO WHICH SUNSCREEN TO USE HE SAYS I DON'T THINK THE ANSWERS ARE THERE YET PROCTER & GAMBLE IS TAKING A DIFFERENT TACK RATHER THAN BRINGING OUT A NEWFORMULATION SUNSCREEN THE COMPANY IS SLIMMING DOWN AND RESTAGING ITS LINE IT REPACKAGED ITS BAIN DE SOLEIL SPORT LINE IN NARROW BLUE CONTAINERS AND RELAUNCHED IT LAST MARCH AS BAIN DE SOLEIL ALLDAY HIGHLIGHTING THE CLAIM THAT IT REMAINS WATERPROOF FOR FROM SIX TO EIGHT HOURS DEPENDING ON THE PRODUCT'S SPF RATING IT WILL PUT MOST OF ITS MARKETING DOLLARS BEHIND THE FIVE ALLDAY PRODUCTS WHILE THE PRICE OF A FOUROUNCE BOTTLE OF ALLDAY 30 SPF EIGHTHOUR PROTECTION RINGS IN AT 849 PROCTOR & GAMBLE CONTENDS THAT THE PRODUCT OFFERS GOOD VALUE BECAUSE IT IS APPLIED LESS OFTEN WE PROVIDE A FULL DAY OF USE PER APPLICATION SAYS A PROCTER & GAMBLE SPOKESMAN CONSUMERS BE WARNED THE FDA DOESN'T OFFER STANDARDS FOR TESTING WATERPROOF CLAIMS OVER 80 MINUTES 9306220117 930622 WHO'S NEWS BUSH INDUSTRIES INC BUSH INDUSTRIES INC JAMESTOWN NY ROBERT E HALLAGAN 49 YEARS OLD WAS ELECTED A CLASS A DIRECTOR OF THIS MANUFACTURER OF READYTOASSEMBLE FURNITURE MR HALLAGAN IS PRESIDENT AND CHIEF EXECUTIVE OF HEIDRICK & STRUGGLES INC AN EXECUTIVE SEARCH FIRM BASED IN BOSTON ADDITIONALLY GREGORY P BUSH 28 VICE PRESIDENT OF ADMINISTRATION AND LEWIS H ARONSON 41 VICE PRESIDENT OF CORPORATE DEVELOPMENT WERE NAMED CLASS B DIRECTORS THE APPOINTMENTS EXPAND THE SIZE OF THE BOARD TO NINE MEMBERS FROM SIX 9306220116 930622 SPROUSEREITZ SEES LOSS FOR YEAR PORTLAND ORE SPROUSEREITZ STORES INC SAID THAT BECAUSE OF A FIRSTQUARTER LOSS AND SOFT SALES IT EXPECTS TO REPORT A LOSS FOR THE FISCAL YEAR ENDING JAN 25 1994 THE RETAILER WHICH DIDN'T DISCLOSE THE AMOUNT OF THE EXPECTED LOSS SAID IT PREVIOUSLY EXPECTED TO EARN 12 MILLION FOR THE YEAR AFTER COMING OUT OF BANKRUPTCYCOURT PROTECTION 9306220115 930622 INTERNATIONAL REPORT NAMES KANEMARU BIGGEST TAX EVADER IN '92 TOKYO REUTER SHIN KANEMARU THE DISGRACED FORMER PAYMASTER OF JAPAN'S RULING LIBERAL DEMOCRATIC PARTY WAS JAPAN'S BIGGEST INDIVIDUAL TAX EVADER IN 1992 AN OFFICIAL REPORT SAID THE NATIONAL TAX ADMINISTRATION AGENCY REPORT SAID MR KANEMARU WHO GOES ON TRIAL IN JULY CHARGED WITH TWO COUNTS OF MASSIVE TAX EVASION FAILED TO DECLARE 167 MILLION THAT HE ALLEGEDLY RECEIVED IN KICKBACKS AND DONATIONS FROM COMPANIES SEEKING FAVORS IN FEBRUARY PROSECUTORS AND TAX INVESTIGATORS DRAGGED AWAY BOXES FULL OF GOLD INGOTS AND BANKNOTES FROM MR KANEMARU'S SAFE THE SCANDAL HAS BEEN A CRUCIAL FACTOR IN JAPAN'S CURRENT POLITICAL TURMOIL THE LDP HAS CALLED AN ELECTION FOR JULY 18 JUST FOUR DAYS BEFORE MR KANEMARU'S TRIAL OPENS COMMENTATORS SAY THEY BELIEVE POLITICIANS WANTED THE VOTE TO BE HELD BEFORE POSSIBLE FURTHER DAMAGING REVELATIONS OF HIGHLEVEL CORRUPTION THE NATIONAL TAX ADMINISTRATION AGENCY IN ITS OVERALL REPORT SAID IT FOUND THAT INDIVIDUALS AND CORPORATIONS FAILED TO DECLARE 916 MILLION IN 219 CASES DURING THE FISCAL YEAR ENDED IN MARCH 9306220114 930622 WHO'S NEWS DARWIN MOLECULAR CORP DARWIN MOLECULAR CORP KIRKLAND WASH DAVID J GALAS FORMERLY ASSOCIATE DIRECTOR FOR HEALTH AND ENVIRONMENTAL RESEARCH AT THE US DEPARTMENT OF ENERGY WAS NAMED VICE PRESIDENT OF RESEARCH AND DEVELOPMENT AND A DIRECTOR OF THIS BIOTECHNOLOGY CONCERN AT THE DEPARTMENT OF ENERGY DR GALAS 49 YEARS OLD WAS IN CHARGE OF THE HUMAN GENOME PROJECT AND ALL OTHER BIOLOGICAL AND ENVIRONMENTAL RESEARCH 9306220113 930622 WHO'S NEWS CITICORP CITICORP NEW YORK LAWRENCE R PHILLIPS 54 YEARS OLD WAS NAMED VICE PRESIDENT AND SENIOR HUMAN RESOURCES OFFICER AT THIS MAJOR BANK COMPANY MR PHILLIPS WHO WILL HAVE OVERALL RESPONSIBILITY WORLDWIDE FOR HUMAN RESOURCES ACTIVITIES WAS VICE PRESIDENT FOR HUMAN RESOURCES FOR GE AEROSPACE WHICH GENERAL ELECTRIC CO RECENTLY SOLD TO MARTIN MARIETTA CORP HE SUCCEEDS JERRY LIEBERMAN 46 WHO RESIGNED IN MARCH TO BECOME SENIOR VICE PRESIDENT OF ADMINISTRATION FOR FMR CORP A UNIT OF FIDELITY INVESTMENTS A BOSTON FINANCIAL SERVICES AND MUTUAL FUNDS CONCERN 9306220112 930622 BUSINESS BRIEF FRED'S INC ACQUISITION OF BILL'S IS OFF PRICE WAS THE STICKING POINT FRED'S INC WHICH OPERATES 166 DISCOUNT STORES IN THE SOUTHEAST SAID IT HALTED TALKS TO ACQUIRE BILL'S DOLLAR INC A CLOSELY HELD RETAIL CHAIN BASED IN JACKSON MISS WE COULDN'T AGREE ON PRICE SAID BRUCE D SMITH CHIEF FINANCIAL OFFICER THE MEMPHIS TENN COMPANY REMAINS INTERESTED IN ACQUIRING OTHER DISCOUNT CHAINS IN THE SOUTHEAST HE SAID IN MARCH FRED'S SIGNED A LETTER OF INTENT WITH THE CONTROLLING SHAREHOLDER OF BILL'S AND ITS PRIMARY LENDER TO ACQUIRE THE COMPANY FRED'S DIDN'T DISCLOSE TERMS AT THE TIME FRED'S SAID THE ACQUISITION OF THE BILL'S CHAIN WHICH HAS ABOUT 530 STORES WOULD INCREASE ITS GEOGRAPHIC COVERAGE AND MARKET SHARE IN THE SOUTHEAST AND ENHANCE ITS PURCHASING POWER AND ADVERTISING EFFECTIVENESS THE COMPANY SAID BILL'S HAD SALES OF 230 MILLION IN THE FISCAL YEAR ENDED JAN 30 FRED'S REPORTED 3165 MILLION FOR THE SAME PERIOD 9306220111 930622 WHO'S NEWS NEW YORK COTTON EXCHANGE NEW YORK COTTON EXCHANGE NEW YORK PAUL TUDOR JONES II 38 YEARS OLD WAS REELECTED CHAIRMAN FOR A ONEYEAR TERM AND STEPHEN J PLACE 43 WAS REELECTED VICE CHAIRMAN MR JONES IS FOUNDER AND CHAIRMAN OF THE TUDOR GROUP OF COS A MONEY MANAGEMENT ORGANIZATION IN NEW YORK MR PLACE IS A FLOOR TRADER AT THE EXCHANGE 9306220110 930622 WHO'S NEWS REVAMPED LTV CORP SELECTS A NEW BOARD CLEVELAND LTV CORP NAMED A NEW BOARD FOR THE REORGANIZED COMPANY WHICH IS EXPECTED TO EMERGE FROM CHAPTER 11 BANKRUPTCYLAW PROTECTION BY THE END OF THE MONTH THE 13MEMBER BOARD INCLUDES DAVID H HOAG CHAIRMAN AND CHIEF EXECUTIVE WHO WILL BE THE ONLY INSIDE DIRECTOR AND FOUR CURRENT LTV DIRECTORS DR COLIN C BLAYDON CHAIRMAN ITP SYSTEMS WILLIAM H BRICKER CHAIRMAN AND CHIEF EXECUTIVE DS ENERGY SERVICES INC JOHN C EVANS ADVISORY DIRECTOR MORGAN STANLEY & CO AND EDWARD C JOULLIAN III CHAIRMAN MUSTANG FUEL CORP NEW DIRECTORS ARE JOHN E JACOB CHIEF EXECUTIVE OF THE NATIONAL URBAN LEAGUE M THOMAS MOORE CHAIRMAN AND CHIEF EXECUTIVE OF CLEVELANDCLIFFS INC VINCENT A SARNI CHAIRMAN AND CHIEF EXECUTIVE OF PPG INDUSTRIES INC PAUL STERN CHAIRMAN NORTHERN TELECOM LTD STEVEN B TIMBERS PRESIDENT OF KEMPER CORP AND FARAH M WALTERS PRESIDENT UNIVERSITY HOSPITALS LTV SAID IT WILL ANNOUNCE ANOTHER NEW DIRECTOR LATER THIS YEAR THE STEEL AND OILEQUIPMENT MAKER SAID THE MEMBERS WERE CHOSEN BY A SEARCH COMMITTEE CONSISTING OF MR HOAG AND MR JOULLIAN WHO HEADED THE BOARD COMPOSITION COMMITTEE JOHN BRINZO CHAIRMAN OF THE STEEL CREDITORS COMMITTEE AND JOEL PIASSICK CHAIRMAN OF THE PARENT CREDITORS COMMITTEE 9306220109 930622 CHARTER FEDERAL PLAN APPROVED BRISTOL VA CHARTER FEDERAL SAVINGS BANK SAID THE OFFICE OF THRIFT SUPERVISION APPROVED ITS CAPITAL RESTORATION PLAN WHICH INCLUDES A COMMON STOCK OFFERING EXPECTED TO RAISE ABOUT 435 MILLION CHARTER FEDERAL SAID ITS COMMON STOCK WILL CONTINUE TO BE LISTED ON THE NASDAQ SMALLCAP MARKET THROUGH A TEMPORARY EXCEPTION PENDING COMPLETION OF THE PLANNED RIGHTS OFFERING 9306220108 930622 TECHNOLOGY PUREPAC TO MAKE KAPANOL ELIZABETH NJ PUREPAC INC SAID IT AGREED TO MANUFACTURE KAPANOL A SUSTAINEDRELEASE FORM OF MORPHINE SULFATE FOR SEVERE PAIN SUCH AS CANCER PAIN FOR ITS AFFILIATE FAULDING INC FAULDING WESTPORT CONN AND PUREPAC ARE SUBSIDIARIES OF FH FAULDING & CO OF AUSTRALIA KAPANOL WAS JOINTLY DEVELOPED BY FAULDING AND GLAXO AUSTRALIA A UNIT OF BRITAIN'S GLAXO HOLDINGS PLC FAULDING IS CONDUCTING CLINICAL TRIALS ON THE DRUG FOR THE NORTH AMERICAN MARKET AND EXPECTS TO FILE A NEWDRUG APPLICATION NEXT YEAR WITH THE FOOD AND DRUG ADMINISTRATION 9306220107 930622 WHO'S NEWS SCHUMACHER IS NAMED BIOMAGNETIC CHAIRMAN SAN DIEGO BIOMAGNETIC TECHNOLOGIES INC NAMED JAMES V SCHUMACHER TO THE NEW POSITION OF CHAIRMAN EXPANDING ITS BOARD TO NINE MEMBERS MR SCHUMACHER 48 YEARS OLD WAS ALSO NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER AS PRESIDENT AND CEO MR SCHUMACHER SUCCEEDS STEPHEN O JAMES 49 WHO WILL REMAIN ON THE BOARD OF THE MEDICAL RESEARCH AND DIAGNOSTIC CONCERN MR SCHUMACHER WAS FORMERLY A GENERAL MANAGER OF GENERAL ELECTRIC CO'S RANGE PRODUCTS AND BEFORE THAT HELD SEVERAL EXECUTIVE POSITIONS IN GE'S MEDICAL SYSTEMS UNIT MR JAMES SAID IN AN INTERVIEW THAT HE IS STEPPING DOWN BECAUSE HE LACKS THE NECESSARY BACKGROUND IN SALES AND MARKETING OF MEDICAL SYSTEMS BUT THAT HE WILL REMAIN AT BIOMAGNETIC TECHNOLOGIES FOR TWO YEARS AS AN ADVISER TO MR SCHUMACHER THE COMPANY SAID ONE OF MR SCHUMACHER'S MAIN RESPONSIBILITIES WILL BE TO EXPAND COMMERCIAL SALES OF ITS BIOMAGNETOMETER SYSTEM MR SCHUMACHER IS EXPECTED TO BEGIN HIS DUTIES IN TWO TO THREE WEEKS 9306220106 930622 WHO'S NEWS PRUDENTIAL INSURANCE CO OF AMERICA PRUDENTIAL INSURANCE CO OF AMERICA NEWARK NJ PETER J HORAN 41 YEARS OLD WAS NAMED MANAGING DIRECTOR AND HEAD OF HIGHYIELD INVESTMENT BANKING AT PRUDENTIAL SECURITIES INC A UNIT OF THIS MAJOR INSURER MR HORAN WHO HAD BEEN MANAGING DIRECTOR OF THE HIGHYIELD DEPARTMENT AT MERRILL LYNCH & CO A NEW YORK INVESTMENT BANKING AND BROKERAGE CONCERN FILLS A POSITION WHICH HAS BEEN VACANT SINCE 1990 9306220105 930622 TECHNOLOGY ICF GETS CONTRACT FROM EPA FAIRFAX VA ICF INTERNATIONAL INC SAID ITS ICF INC UNIT WAS AWARDED A 15 MILLION THREEYEAR ENGINEERING SUPPORT CONTRACT FROM THE US ENVIRONMENTAL PROTECTION AGENCY THE COMPANY SAID ICF INC WILL PROVIDE TECHNICAL ASSISTANCE AND ECONOMIC PROGRAM MANAGEMENT ANALYSES FOR THE EPA'S OFFICE OF UNDERGROUND STORAGE TANKS ICF INTERNATIONAL IS A CONSULTING ENGINEERING AND CONSTRUCTION SERVICES CONCERN 9306220104 930622 INTERNATIONAL S&P PULLS SUMITOMO RATING TOKYO STANDARD & POOR'S CORP SAID IT IS WITHDRAWING ITS DOUBLEAPLUS RATING ON THE CLAIMSPAYING ABILITY OF SUMITOMO LIFE INSURANCE CO AT THE COMPANY'S REQUEST IN LIGHT OF THE WITHDRAWAL S&P WILL NO LONGER BE ABLE TO MAINTAIN SURVEILLANCE OF THIS INSURER'S FINANCIAL STRENGTH AT A TIME OF GROWING UNCERTAINTIES SURROUNDING JAPANESE FINANCIAL INSTITUTIONS THE RATING AGENCY SAID S&P ORIGINALLY RATED SUMITOMO LIFE TRIPLEA IN 1987 AND DOWNGRADED THAT RATING TO DOUBLEAPLUS IN FEBRUARY 9306220103 930622 WHO'S NEWS ABEX INC ABEX INC HAMPTON NH ALBERT D INDELICATO 42 YEARS OLD WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER EFFECTIVE AUG 1 MR INDELICATO WHO WILL CONTINUE AS PRESIDENT OF THE ABEX FRICTION PRODUCTS DIVISION SUCCEEDS RALPH E STEWART 45 MR STEWART RESIGNED TO EXPLORE BUSINESS OPPORTUNITIES IN THE MIDWEST HIS HOME FOR MANY YEARS THE AEROSPACE AND INDUSTRIAL PRODUCTS MANUFACTURER SAID 9306220102 930622 LETTERS TO THE EDITOR SECONDARY MEANING' OF SOME TRADEMARKS YOUR MAY 24 ARTICLE ON COLUMBIA SPORTSWEAR DESCRIBES THE 1992 TACO CABANA CASE AS HOLDING THAT COMPANIES TRYING TO STOP IMITATORS MUST PROVE ONLY THAT THEIR PRODUCTS OR SERVICES ARE INHERENTLY DISTINCTIVE RATHER THAN UNIQUE THE CONTRAST ACTUALLY MADE BY THE SUPREME COURT IN THAT CASE HOWEVER WAS BETWEEN INHERENTLY DISTINCTIVE TRADE DRESS ON THE ONE HAND AND TRADE DRESS WITH SECONDARY MEANING ON THE OTHER A MARK ACQUIRES SECONDARY MEANING WHEN AN APPRECIABLE NUMBER OF CONSUMERS RECOGNIZE THAT IT IS BEING USED AS A TRADEMARK RATHER THAN IN ITS PRIMARY DESCRIPTIVE SENSE THE WAY MOST CONSUMERS TODAY REALIZE THAT VERYFINE IS ONE COMPANY'S BRAND OF FRUIT JUICE NOT JUST SOME COMPANY'S ATTEMPT TO DESCRIBE THE HIGH QUALITY OF ITS JUICES IN OTHER WORDS IN TACO CABANA THE SUPREME COURT HELD THAT WHEN PRODUCT OR SERVICE TRADE DRESS IS INHERENTLY DISTINCTIVE RATHER THAN FOR EXAMPLE COMMONPLACE OR FUNCTIONAL THE VENDOR CLAIMING RIGHTS IN THAT DRESS NEED NOT PROVE THAT CONSUMERS ALREADY RECOGNIZE THAT THE TRADE DRESS IS ASSOCIATED WITH A SINGLE VENDOR 9306220101 930622 LETTERS TO THE EDITOR HYSTERECTOMY DATA FOR HMOS INCONCLUSIVE YOUR MAY 12 ARTICLE HMOS PERFORM INAPPROPRIATE HYSTERECTOMIES IMPLIED THAT THE CARE PROVIDED BY HMOS WAS SOMEHOW WORSE THAN THAT PROVIDED BY OTHER FORMS OF HEALTH CARE DELIVERY YET NO EVIDENCE CITED IN THE ARTICLE COULD LEAD TO THAT CONCLUSION YOU STATED THAT FINDINGS CHALLENGE THE WIDELY HELD VIEW THAT HMOS CONTAIN COSTS IN PART BY LIMITING UNNECESSARY CARE THE FINDINGS DO NO SUCH THING A 16 RATE OF INAPPROPRIATE HYSTERECTOMIES MAY VERY WELL BE LOWER THAN THE RATE FOR NONHMO PROVIDERS IF THE PURPOSE OF THE RESEARCH WAS TO EVALUATE HMOS VS NONHMOS THE STUDY APPEARS TO HAVE BEEN MISDIRECTED BY RESTRICTING ITSELF TO HMOS IT CANNOT POSSIBLY REACH ANY CONCLUSIONS AS TO HOW HMOS DIFFER FROM OTHER FORMS OF MEDICAL PRACTICE 9306220100 930622 WHO'S NEWS CONAGRA INC CONAGRA INC OMAHA NEB JAMES D WATKINS 45 YEARS OLD A MEMBER OF THIS FOOD COMPANY'S OFFICE OF THE PRESIDENT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF CONAGRA DIVERSIFIED PRODUCTS COS A NEW UNIT THAT INCLUDES GOLDEN VALLEY MICROWAVE FOODS INC WHICH MR WATKINS FOUNDED LAMBWESTON INC ARROW INDUSTRIES INC CONAGRA PET PRODUCTS CO AND SINGLETON SEAFOOD CO 9306220099 930622 MASTERCARD SAYS FRAUD INCREASED 23 IN 1992 NEW YORK MASTERCARD INTERNATIONAL INC SAID CREDIT CARD FRAUD CONTINUED TO RISE DESPITE SUCCESS OF SOME EFFORTS TO REDUCE SCAMS THE CREDIT CARD COMPANY SAID THE GROWTH RATE OF FRAUD IN 1992 ROSE 23 FROM THE PREVIOUS YEAR TO 460 MILLION IN 1991 TOTAL FRAUD ROSE 25 MASTERCARD SAID IT HAD PARTICULAR SUCCESS IN SLOWING THE GROWTH OF COUNTERFEIT CARDS WHICH NONETHELESS INCREASED 33 COMPARED WITH A 75 GROWTH RATE THE PREVIOUS YEAR THE COMPANY SAID THE SLOWDOWN REFLECTED A CONCERTED FRAUDPREVENTION EFFORT IN ITS ASIA/PACIFIC MARKET WHERE TOTAL FRAUD DECREASED 10 MASTERCARD SAID IT IS CONSIDERING PLANS TO IMPLEMENT WORLDWIDE THOSE STRATEGIES THAT SUCCEEDED IN REDUCING FRAUD IN THE PACIFIC RIM SUCH AS PRINTING THE ACCOUNT NUMBER IN THE SIGNATURE BOX AND USING TWO CARDVALIDATION CODES 9306220098 930622 MCCORMICK PLANS BUYBACK SPARKS MD MCCORMICK & CO SAID IT WILL BEGIN A NEW SHAREBUYBACK PROGRAM FOR AS MANY AS TWO MILLION SHARES WHICH IT WILL PURCHASE FROM TIME TO TIME IN OPEN MARKET TRANSACTIONS MCCORMICK'S MOST RECENT REPURCHASE PROGRAM ANNOUNCED IN OCTOBER 1991 IS VIRTUALLY COMPLETE THE PRODUCER OF SPICES FLAVORINGS AND SPECIALTY FOODS SAID BAILEY O THOMAS CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THAT REPURCHASING SHARES OUTSTANDING IS THE BEST APPROACH TO INCREASE OVERALL RETURN TO OUR SHAREHOLDERS IN THE CURRENT ENVIRONMENT THE COMPANY HAS ABOUT 807 MILLION SHARES OUTSTANDING THEY CLOSED UP 1 YESTERDAY TO 2225 IN NATIONAL OVERTHECOUNTER TRADING 9306220097 930622 RAWSTEEL OUTPUT ROSE 04 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY US MILLS INCREASED 04 LAST WEEK TO 1840000 TONS FROM 1832000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 44 FROM THE 1763000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 869 OF ITS CAPABILITY LAST WEEK COMPARED WITH 866 THE PREVIOUS WEEK AND 818 A YEAR AGO 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 9306220096 930622 AG EDWARDS' NET ROSE A STRONG 39 IN FISCAL 1ST PERIOD BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL AG EDWARDS INC SAID FISCAL FIRSTQUARTER EARNINGS JUMPED A STRONGERTHANANTICIPATED 39 ON A 25 INCREASE IN REVENUE BECAUSE OF THE TIMING OF ITS FISCAL YEAR THE ST LOUIS BROKERAGE HOUSE RELEASES ITS EARNINGS ABOUT A MONTH AHEAD OF OTHER SECURITIES FIRMS OFTEN OFFERING A HINT OF THE INDUSTRY'S PERFORMANCE EDWARDS' NET INCOME CLIMBED TO 381 MILLION OR 80 CENTS A SHARE IN THE QUARTER ENDED MAY 31 UP FROM THE YEAREARLIER 274 MILLION OR 60 CENTS A SHARE AND TOPPING MOST ANALYSTS' EXPECTATIONS BY ABOUT 10 TO 15 CENTS A SHARE REVENUE AT THE BIGGEST US BROKERAGE HOUSE OUTSIDE NEW YORK ROSE TO 3149 MILLION FROM 2525 MILLION PERSHARE EARNINGS REFLECT AN INCREASE IN THE NUMBER OF SHARES OUTSTANDING TO 476 MILLION FROM 458 MILLION BUT WHILE EDWARDS' RESULTS SUGGEST CONTINUED SOLID INDUSTRY GROWTH ANALYSTS CAUTIONED THAT OTHER BROKERAGE COMPANIES' SECONDQUARTER RESULTS MAY NOT PROVE AS STRONG IN PART THEY ATTRIBUTE THAT VIEW TO SOFTENING IN INVESTMENT BY INDIVIDUALS IN JUNE A MONTH NOT INCLUDED IN EDWARDS' MAY 31 QUARTER EDWARDS' NUMBERS ARE EXTREMELY GOOD BUT JUNE HAS DECLINED SIGNIFICANTLY SAID PERRIN H LONG JR AN ANALYST WITH FIRST OF MICHIGAN THERE IS MORE UNCERTAINTY ABOUT THE TAX BILL INTEREST RATES ARE UP A LITTLE AND PEOPLE ARE STARTING TO RUN OUT OF MONEY IN THE CURRENT MONTH INVESTORS ARE SITTING DOWN BY THE SIDELINES MORE THAN THEY HAVE IN THE PAST HE SAID EDWARDS ATTRIBUTED ITS STRONG QUARTER TO ROBUST UNDERWRITING AND RETAIL TRANSACTIONS AND IT EMPHASIZED THAT EARNINGS AREN'T BENEFITING FROM ONE PARTICULAR AREA ALL AREAS WERE STRONG SAID ROBERT L PROOST CORPORATE VICE PRESIDENT EVERYTHING JUST HIT RIGHT INDIVIDUAL INVESTOR TRADING EDWARDS' TRADITIONAL FOCUS AND RESPONSIBLE FOR ABOUT 60 OF ITS REVENUE WAS UP ABOUT 30 FROM LAST YEAR'S QUARTER INVESTMENT BANKING WHICH ACCOUNTS FOR 11 OF TOTAL REVENUE WAS UP AROUND 40 EDWARDS ATTRIBUTED THE INCREASED RETAIL BUSINESS TO LOW INTEREST RATES AND THE PERCEPTION THAT THE RECESSION THAT WAS IN PLACE HAS BOTTOMED OUT AND THAT THE ECONOMY IS RECOVERING WHICH WE BELIEVE IS THE CASE AT THE CLOSE OF THE LATEST PERIOD EDWARDS HAD 4975 BROKERS WORKING AT 475 OFFICES UP FROM 4539 BROKERS AT 451 OFFICES A YEAR EARLIER DESPITE THE POSITIVE EARNINGS SURPRISE EDWARDS' SHARES INCHED UP JUST 125 CENTS TO 23375 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING COMMENTING ON THE STOCK MOVES SMITH BARNEY ANALYST ALISON A DEANS NOTED THAT EDWARDS ISN'T AN OVERLY CHEAP STOCK AT ITS CURRENT LEVEL SHE ADDED THIS IS A MARKET DRIVEN BY MOMENTUM PLAYERS AT THIS POINT THERE IS THE CONCERN THAT EDWARDS' STOCK CAN'T GET ANY BETTER THAN IT IS 9306220095 930622 INTERNATIONAL AS EC FACES ITS FAILURE ON BOSNIA SOME TRY TO LEARN FROM MISTAKES BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL COPENHAGEN EUROPEAN COMMUNITY GOVERNMENTS ARE GLOOMILY ACKNOWLEDGING THAT IN YUGOSLAVIA THEY FAILED THEIR BIGGEST FOREIGNPOLICY TEST TO DATE IN A TRIUMPH OF FIREPOWER OVER DIPLOMACY THEY ARE ESSENTIALLY LEAVING BOSNIA'S FUTURE IN THE HANDS OF THE VICTORIOUS SERBS AND CROATS THERE'S A NEW MOOD OF DOWNBEAT REALISM SAYS A SENIOR BRITISH OFFICIAL ATTENDING A TWODAY EC SUMMIT IN COPENHAGEN THERE'S NO MAGIC BOX CALLED LEVERAGE AND DECISIVE PRESSURE DOESN'T EXIST EXCEPT IN THE LONG TERM BEHIND THE SCENES SOME RECRIMINATIONS LARGELY AGAINST GERMANY ARE BEING VOICED BUT THE SHELLSHOCKED EC SEEMS DETERMINED TO LEARN FROM ITS MISTAKES FRANCE IS TRYING TO LEAD THE WAY PRIME MINISTER EDOUARD BALLADUR IS CIRCULATING PLANS FOR A NEW SECURITY PACT THAT WOULD ESSENTIALLY OFFER EASTERN EUROPE'S FRACTIOUS NATIONS A GUARANTEE OF EVERCLOSER ECONOMIC TIES WITH THE EC IN RETURN GOVERNMENTS IN THE FORMER COMMUNIST BLOC ARE EXPECTED TO KEEP THE PEACE RESPECT THE RIGHTS OF THEIR ETHNIC MINORITIES AND NOT SEEK TO CHANGE TERRITORIAL BORDERS STABILITY IS THE CONDITION IS HOW ONE SENIOR FRENCH OFFICIAL DESCRIBES THE IDEA BOTH THE US AND RUSSIA WOULD HAVE A ROLE TO PLAY IN THIS FRENCH OFFICIALS SAY BUT TWO TROUBLE SPOTS WHERE WAR IS ALREADY RAGING FORMER YUGOSLAVIA AND THE CAUCASUS AREN'T INCLUDED BECAUSE THE OFFICIALS SAY THE PACT AIMS AT PREVENTING FUTURE CONFLICTS NOT SOLVING EXISTING ONES IT IS UNCERTAIN WHETHER THIS PACT OR ANY OTHER INITIATIVE COULD WORK AS NIELS HELVEG PETERSEN DENMARK'S FOREIGN MINISTER SAID THE FIRST LESSON IS THAT THE INTERNATIONAL COMMUNITY DOESN'T HAVE THE INSTRUMENTS IN A CASE LIKE THIS WHERE PEOPLE ARE DETERMINED TO HATE AND KILL EACH OTHER BRITAIN'S LORD OWEN WHO HAS TRIED TO MEDIATE THE SITUATION AS A REPRESENTATIVE OF THE INTERNATIONAL COMMUNITY LAST WEEK OUTLINED HIS OWN IDEAS FOR PREVENTING A REPETITION MOST IMPORTANT HE SAID IS THAT THE UNITED NATIONS SECRETARYGENERAL HAVE AT HIS ELBOW THE SORT OF COMMAND AND CONTROL SYSTEM THAT ANY MINISTRY OF DEFENSE OF EVEN A MODESTSIZED COUNTRY WOULD CONSIDER ABSOLUTELY ESSENTIAL FRANCE AND OTHER EC GOVERNMENTS AGREE WITH LORD OWEN THAT EUROPE MUSTN'T FLINCH FROM FUTURE EFFORTS AND SOME ARE CONVINCED THAT A POLICY INITIATIVE IS NEEDED TO RESTORE AT LEAST PART OF THE EC'S CREDIBILITY AS A FORCE IN INTERNATIONAL DIPLOMACY THE WAR IN YUGOSLAVIA ERODED WHAT LITTLE EXISTED TWO YEARS AGO AS THE FIRST SHOTS WERE BEING FIRED EC GOVERNMENTS SAW THE CONFLICT AS THE FIRST KEY TEST OF THEIR WILL TO FORGE A COMMON FOREIGN POLICY THEY BROKERED CEASEFIRES AT FIRST TOASTING THEIR SUCCESS WITH CHAMPAGNE AND THEN WATCHING IN HORROR AS FIGHTING ESCALATED BETWEEN SERB CROAT AND MUSLIM FORCES HANS VAN DEN BROEK WHO PLAYED AN ACTIVE ROLE IN THE INITIAL EC DIPLOMACY IN HIS CAPACITY AS DUTCH FOREIGN MINISTER IS HARSHLY CRITICAL OF THE RESULT THE IMAGE OF THE COMMUNITY HAS SUFFERED GRIEVOUSLY FROM OUR FAILURE TO RESOLVE THIS GHASTLY CONFLICT ON OUR DOORSTEP SAID MR VAN DEN BROEK WHO IS NOW AN EC COMMISSIONER IN A RECENT SPEECH OVER THE WEEKEND ROLAND DUMAS FRANCE'S FOREIGN MINISTER UNTIL MARCH OFFERED HIS OWN CRITIQUE THE EC'S MAIN FAILING WAS ITS COLLECTIVE INABILITY TO ORGANIZE MILITARY MEANS TO DEAL WITH THE SITUATION HE SAID SINGLING OUT BRITISH OBJECTIONS AND GERMAN PREVARICATION HE ALSO BLAMED GERMANY FOR PUSHING THE EC INTO PREMATURE RECOGNITION OF THE INDEPENDENCE OF THE FORMER YUGOSLAV REPUBLICS IN DECEMBER 1991 BONN STUNG BY SIMILAR CRITICISM BY US SECRETARY OF STATE WARREN CHRISTOPHER INSISTS IT ISN'T TO BLAME THE NOWDEFUNCT VANCEOWEN PEACE PLAN WOULD HAVE MAINTAINED THE TERRITORIAL INTEGRITY OF BOSNIA BUT DIVIDED IT INTO 10 SEPARATE AREAS SERBIAN AND CROAT LEADERS ARE NOW WORKING ON THEIR OWN PROPOSALS WHICH ARE EXPECTED TO CARVE THE AREA INTO FIVE REGIONS TWO CROAT TWO MUSLIM AND ONE SERB THE EC SAYS ITS ROLE WILL BE TO LEND DIPLOMATIC SUPPORT TO THE MUSLIMS TO ENSURE THEY GET WHAT LORD OWEN DESCRIBES AS A VIABLE MINISTATE THE EUROPEANS STILL INSIST IN PUBLIC THAT BOSNIA SHOULD RETAIN ITS TERRITORIAL INTEGRITY BUT SOME OFFICIALS ACKNOWLEDGE IT WILL BE HARD TO PREVENT SERBIA AND CROATIA FROM ANNEXING SOME PARTS TALKS ON THE FUTURE OF BOSNIA ARE EXPECTED TO RECOMMENCE IN GENEVA TOMORROW ATTENDED BY THE SERB AND CROAT LEADERS AND POSSIBLY A DELEGATION OF BOSNIAN MUSLIMS WHO HAVE SO FAR REFUSED TO SIGN ANY DEAL TO PARTITION THE REPUBLIC EC LEADERS ARE PROMISING TO HELP THEM NEGOTIATE THE BEST AGREEMENT UNDER THE CIRCUMSTANCES BUT SAY THE MUSLIMS MUST ALSO TAKE PART IN THE TALKS THEMSELVES THERE ARE LIMITS TO HOW MUCH A MEDIATOR CAN ARGUE THEIR CASE SAID LORD OWEN PRIVATELY EC OFFICIALS ACKNOWLEDGE THEY CAN NOW DO LITTLE TO INFLUENCE THE COURSE OF EVENTS SANCTIONS REMAIN IN PLACE ON SERBIA WITH MIXED RESULTS LORD OWEN SAYS A MONSTROUS NUMBER OF TRUCKS ARE STILL ENTERING THROUGH MACEDONIA BUT THE EUROPEANS FIRMLY RULE OUT THE OPTION BEING URGED ON THEM BY THE BOSNIAN MUSLIMS THEMSELVES TO LIFT THE ARMS EMBARGO AND PROVIDE WEAPONS BOSNIAN PRESIDENT ALIJA IZETBEGOVIC FLEW TO COPENHAGEN YESTERDAY TO MEET WITH EC FOREIGN MINISTERS HE TOLD THEM THE REFUSAL TO LIFT THE EMBARGO ON WEAPONS FOR BOSNIAN MUSLIMS EFFECTIVELY MEANT THE ACCEPTANCE OF THE PRIMACY OF FORCE OVER LAW BUT MR PETERSEN THE DANISH FOREIGN MINISTER RULED OUT SUCH A MOVE SAYING IT WOULDN'T BE SUPPORTED BY THE UN SECURITY COUNCIL AND WOULD INCREASE THE FIGHTING 9306220094 930622 WHO'S NEWS COMPUTER SCIENCES NAMES ELAM PRESIDENT OF INDUSTRY SERVICES EL SEGUNDO CALIF COMPUTER SCIENCES CORP SAID DALE B ELAM 44 YEARS OLD WAS NAMED PRESIDENT OF ITS INDUSTRY SERVICES GROUP SUCCEEDING VAN B HONEYCUTT COMPUTER SCIENCES' NEW PRESIDENT AND CHIEF OPERATING OFFICER MR ELAM'S NEW POST COMPRISES ABOUT 75 OF MR HONEYCUTT'S FORMER DUTIES INCLUDING OVERSIGHT OF THE COMPANY'S CREDIT HEALTH CARE FINANCIAL INSURANCE AND TAXPROCESSING SERVICES A COMPUTER SCIENCES SPOKESMAN SAID HE ADDED THAT MR ELAM WILL CONTINUE AS PRESIDENT OF THE COMPANY'S CREDIT SERVICES UNIT MR HONEYCUTT REMAINS RESPONSIBLE FOR THE COMPANY'S OUTSOURCING BUSINESS WHERE COMPANIES WOULD HIRE AN OUTSIDE CONTRACTOR FOR FORMER INHOUSE SERVICES THE BUSINESS AREA MAKES UP THE REMAINING 25 OF MR HONEYCUTT'S PREVIOUS DUTIES COMPUTER SCIENCES IS A DATAMANAGEMENT COMPANY 9306220093 930622 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JUNE 18 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 BERKELEY COUNTY SC WILL REDEEM ON AUG 1 1993 400000 PRINCIPAL AMOUNT OF ITS POLLUTION CONTROL FACILITIES REVENUE BONDS 1976 SERIES DUE AUG 1 2006 SOUTH CAROLINA NATIONAL BANK COLUMBIA SC IS TRUSTEE BRAZOS RIVER AUTHORITY WILL REDEEM ON JULY 15 1993 410000 PRINCIPAL AMOUNT OF THE 1976 SERIES AND 1030000 PRINCIPAL AMOUNT OF THE 1975 SERIES OF ITS WATER SUPPLY REVENUE BONDS DUE JULY 15 2004 NATIONSBANK OF TEXAS DALLAS IS TRUSTEE FERRIS STATE UNIVERSITY WILL REDEEM ON JULY 15 1993 45000 PRINCIPAL AMOUNT OF ITS 5 1967 SERIES TERM B APARTMENT BUILDING REVENUE BONDS DUE JULY 15 2007 SOCIETY BANK MICHIGAN IN DALLAS IS TRUSTEE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY WILL REDEEM ON JULY 1 1993 ITS CONVENTION CENTER PROJECT BONDS SERIES A DUE JAN 1 2000 CITIBANK NEW YORK IS TRUSTEE WESTCHESTER COUNTY INDUSTRIAL DEVELOPMENT AGENCY WILL REDEEM ON JULY 1 1993 THE FOLLOWING RESOURCE RECOVERY REVENUE BONDS SERIES A DUE JAN 1 OF THE INDICATED YEAR COUPON BONDS 100000 PRINCIPAL AMOUNT OF 10 BONDS DUE 1994 105000 OF 105 BONDS DUE 2000 AND 730000 OF 1025 BONDS DUE 2005 FULLY REGISTERED CERTIFICATES 145000 PRINCIPAL AMOUNT OF 10 CERTIFICATES DUE 1994 1645000 OF 105 CERTIFICATES DUE 2000 AND 2495000 OF 1025 CERTIFICATES DUE 2005 CITIBANK NEW YORK IS TRUSTEE KENTUCKY UTILITIES CO A UNIT OF KU ENERGY CORP WILL REDEEM ON JULY 1 1993 THE FOLLOWING FIRST MORTGAGE BONDS 875 SERIES I BONDS DUE APRIL 1 2000 AND 7625 SERIES H BONDS DUE MAY 1 1999 CONTINENTAL BANK CHICAGO IS TRUSTEE 9306220092 930622 INTERNATIONAL PECHINEY'S 1993 OUTLOOK PARIS PECHINEY INTERNATIONAL SA CHAIRMAN JEAN GANDOIS TOLD SHAREHOLDERS THAT THE FRENCH PACKAGING AND AERONAUTIC COMPONENTS GROUP WILL PROBABLY HAVE A NET GROUP PROFIT BEFORE GOODWILL AMORTIZATION IN 1993 THAT IS SLIGHTLY ABOVE LAST YEAR'S LEVEL IN 1992 PECHINEY INTERNATIONAL POSTED A NET GROUP PROFIT OF 107 BILLION FRANCS 190 MILLION EXCLUDING EXCEPTIONAL ELEMENTS AND GOODWILL AMORTIZATION MR GANDOIS SAID THE FIRST HALF OF THE YEAR OF 1993 HAD BEEN BAD FOR PACKAGING ALTHOUGH HE NOTED THAT IN A BUSINESS DEPENDING SUBSTANTIALLY ON SUMMER CONSUMPTION A POORER FIRST HALF IS A TYPICAL PATTERN BUT HE SAID THE NET PROFIT WILL BE VERY CLOSE TO THE 1992 LEVEL FOR THE FIRST HALF OR 782 MILLION FRANCS 9306220091 930622 SARA LEE TO BUY MAGLIFICIO STAKE CHICAGO SARA LEE CORP SAID IT AGREED TO ACQUIRE A MAJORITY STAKE IN MAGLIFICIO BELLIA SPA A LEADING ITALIAN KNIT PRODUCTS COMPANY TERMS WEREN'T DISCLOSED SARA LEE A FOOD AND CONSUMER PRODUCTS CONCERN SAID BELLIA MAKES AND MARKETS HIGHQUALITY MEN'S AND WOMEN'S UNDERWEAR OUTERWEAR AND NIGHT WEAR AND IS THE LEADER IN MEN'S AND WOMEN'S UNDERWEAR TOPS IN ITALY THE COMPANY HAD ANNUAL SALES OF 130 MILLION IN 1992 THE COMPANY SAID THE INVESTENT ENABLES IT TO PARTICIPATE IN THE ITALIAN UNDERWEAR MARKET AND PROVIDES US WITH PRODUCTS THAT COMPLEMENT OUR EXISTING PERSONAL PRODUCTS BUSINESSES IN EUROPE 9306220090 930622 BUSINESS WORLD PUBLIC SAFETY POSES DANGER TO TAXPAYERS BY TIM W FERGUSON RURAL/METRO CORP IS A FAMILIAR NAME TO THOSE WHO'VE LONG CHAMPIONED THE PRIVATIZING OF PUBLIC SERVICES THE SCOTTSDALE ARIZBASED COMPANY IS THE FIRE DEPARTMENT FOR THAT TOWN AND 22 OTHER SPOTS IN THE SUN BELT IT PROVIDES PARAMEDIC SERVICE IN EVEN MORE PLACES NOW RURAL/METRO IS GOING PUBLIC THAT IS IT'S REGISTERED FOR AN INITIAL STOCK SALE CURRENTLY A 62 MILLION ANNUAL OPERATION IT WANTS TO POSITION ITSELF FOR GROWTH IN A MOST SENSITIVE AREA OF CONTRACTING WITH GOVERNMENT THE PRIVATIZATION OF PUBLIC SAFETY FIRE RESCUE POLICE AND JAILS IS NOT ONLY TOUCHY AND TRICKY IT IS INCREASINGLY TIMELY AN EVERLARGER SEGMENT OF THE POPULATION BEHAVES UNCIVILLY WHILE AT THE SAME TIME SOCIETY INSISTS THAT CRIMINALS BE CONFINED AND EXPECTS EMERGENCY SERVICES IN ANY EVENTUALITY THAT'S A COMBINED RECIPE FOR MUSHROOMING TAXPAYER COSTS TO TRY TO ENSURE PEACE AND SECURITY AN EXPENSE THE PRIVATE SECTOR CAN HELP TO MITIGATE IN THE TOTAL SCHEME OF GOVERNMENT PUBLIC SAFETY IS SURPRISINGLY SMALL POTATOES MAYBE 4 OF ALL FEDERAL STATE AND LOCAL EXPENDITURES BUT THE GROWTH RATE IS OMINOUS AS SEEN IN THE ACCOMPANYING CHART SEE ACCOMPANYING ILLUSTRATION WSJ JUNE 22 1993 FIRE AND PARAMEDIC SPENDING HAS GROWN MORE THAN SIXFOLD IN 20 YEARS ABOUT THE SAME AS THE GROWTH RATE FOR TOTAL STATE AND LOCAL GOVERNMENT THE POLICE TAB HAS RISEN BY SEVEN TIMES AND CORRECTIONS 15 TIMES THE HEALTH SECTOR WHICH INCORPORATES SOME MEDICAL RESPONSE UNITS HAS ALSO SOARED AND THOSE NUMBERS DON'T REFLECT PENSION OBLIGATIONS OR THE OUTRAGEOUS DISABILITYRETIREMENT SETTLEMENTS THAT ARE NOW ROUTINE IN THESE FIELDS CORRECTIONS IS UNDERSTANDABLY A HOT TURF FOR PRIVATIZATION RIGHT NOW AS THE JOURNAL'S TIMOTHY O'BRIEN REPORTED THIS MONTH THE INDUSTRY REMAINS ONE OF MORE PITFALLS THAN PROFITS ACCORDING TO UNIVERSITY OF FLORIDA PROF CHARLES TAYLOR ONLY 30000 BEDS FOR ROUGHLY 14 MILLION ADULT INMATES ARE PROVIDED PRIVATELY ALTHOUGH THE TINY PERCENTAGE IS RISING IN THE TRADITIONALLY MORE INFORMAL JUVENILE SYSTEM HE ESTIMATES THE SHARE IS MUCH HIGHER 40 OF 100000 BEDS BEYOND THOSE NUMBERS ARE AT LEAST 3 MILLION MISCREANTS ON PAROLE OR PROBATION WHO MAY BE SUPERVISED BY A NONGOVERNMENTAL UNIT IN FLORIDA THE SALVATION ARMY IS INVOLVED IN THE FACE OF EXTRAORDINARY LAWLESSNESS AMERICA HAS TAKEN A HUGE GAMBLE IT HAS TRIED TO LOCK UP AS MANY CRIMINALS AS POSSIBLE BETTING THAT PUNISHMENT WILL DETER THE NEXT WAVE OF CRIMINALITY BEFORE IT SWAMPS THE PUBLIC FISC MAYBE IT'S YET THE CASE THAT NOT ENOUGH FELONS ARE JAILED SUFFICIENTLY LONG SCHOLARS JAMES Q WILSON AND JOHN DIIULIO WOULD MAKE THAT ARGUMENT BUT THERE'S NO DOUBTING THAT BUDGETS ALREADY ARE BURSTING THE NUMBER OF STATE CORRECTIONS PERSONNEL SOME OF THE HIGHESTPAID STATE WORKERS INCREASED 155 IN CALIFORNIA IN THE LAST DECADE IN MANY JURISDICTIONS POLICE AND COURTS HAVE HAD TO BACK OFF BECAUSE JAILS ARE FULL WE SHOULD BE GLAD THEY HAVE BASED ON AN ARTICLE IN THE APRIL ISSUE OF WASHINGTON MONTHLY IT FLESHES OUT HOW THE DRUG WAR AND MANDATORYSENTENCING POLICIES HAVE RECAST THE PRISON POPULATION AND SUGGESTS VIOLENT FELONS ARE LET OUT SO THAT NONVIOLENT OFFENDERS CAN BE PUT IN AND AT A HIGHER COST PER INMATE ONE RAY OF HOPE IN THIS BLEAK PICTURE MAY BE FOUND IN COMMUNITY FACILITIES SUCH AS ARE OPERATED BY MANAGEMENT & TRAINING CORP OF OGDEN UTAH MTC AS IT'S KNOWN GOT STARTED AS A THIOKOL CORP BUYOUT HANDLING JOB CORPS CENTERS FOR THE US GOVERNMENT WHICH IT STILL DOES FIVE YEARS AGO IT CONTRACTED TO RUN A SECURE FACILITY IN THE CALIFORNIA DESERT FOR A FEW HUNDRED PAROLE VIOLATORS THAT PACT HAS JUST BEEN EXTENDED AND MTC HAS BROKEN GROUND ON A TREATMENT CENTER IN ARIZONA FOR 450 DRUNKDRIVERS AND DRUG CONVICTS IN THE LAST MONTHS OF THEIR RECOVERY MTC WITH TS BACKGROUND EMPHASIZES WORK PROGRAMS AND PREPARATION FOR LIFE ON THE OUTSIDE WITH PRISONS AS CROWDED AND HOPELESS AS THEY ARE NOW AND PROBATION MONITORING NEXT TO NIL BECAUSE OF HORRENDOUS LOADS FOR CASEWORKERS LESS INTENSE CONFINEMENT MAY BE AN ANSWER THIS ASSUMES OF COURSE THAT LOCATIONS FOR SUCH FACILITIES CAN BE FOUND DESPITE THE CUSTOMARY NIMBY PRESSURES WHATEVER THE PROGRAMMATIC GAINS PRIVATE OPERATION PROMISES A COST REDUCTION OF 10 TO 15 OVER STANDARD PUBLIC MANAGEMENT ACCORDING TO PROF TAYLOR OF FLORIDA HE ATTRIBUTES THAT MAINLY TO THINNER TOP ADMINISTRATIVE RANKS LESS RED TAPE IN PROCUREMENT AND PROCESSING AND LOWER PENSION COSTS WAGE LEVELS WILL TEND TO BE COMPARABLE BUT EMPLOYEES AT A COMPANY SUCH AS CORRECTIONS CORP OF AMERICA THE NATION'S LARGEST PRIVATE ALTERNATIVE DISCIPLINE THE PADDING OF SICK LEAVE AND OTHER SLOTHFUL PRACTICES BECAUSE THEY HAVE A STAKE IN THE BUSINESS BECAUSE OF AN EMPLOYEE STOCK OWNERSHIP PLAN OTHER VARIABLES ARE EXPLORED IN THE BOOK PRIVATIZING CORRECTIONAL INSTITUTIONS PRODUCED THROUGH THE MANHATTAN INSTITUTE OF NEW YORK LAST FALL IF PRIVATE PRISONS ARE A HOT SUBJECT SO TOO ARE CONTRACT SECURITY SYSTEMS AND PATROLS FOR RESIDENTIAL NEIGHBORHOODS AS WELL AS COMMERCIAL AND INDUSTRIAL BUILDINGS THIS SPEAKS TO PERCEIVED GAPS IN LAW ENFORCEMENT AS WELL AS A REFLECTION OF ENHANCED WEALTH IN NEED OF EXTRA PROTECTION ACCORDING TO ROBERT MCCRIE WHO PUTS OUT THE SEMIMONTHLY SECURITY LETTER IN NEW YORK ABOUT 10 OF US HOMES ARE CONNECTED TO A GUARD NETWORK UP FROM ONLY 1 IN THE LATE 1970S ADT HONEYWELL AND BORGWARNER'S WELLS FARGO LEAD THIS 33 BILLION ANNUAL BUSINESS BUT THERE'S BEEN LOTS OF ROOM FOR UPSTARTS SUPPLEMENTS TO LOCAL POLICING SEEM TO DEMONSTRATE SUCCESS BURGLARY RATES IN CONTRAST TO OTHER MAJOR CRIMES HAVE DECLINED IN THE US IN NEARLY ALL SITUATIONS TO DATE PRIVATIZATION IN THE PUBLIC SAFETY AREA HAS BEEN A TENTATIVE MARGINAL RESPONSE A TESTING OF THE FRONTIERS OF WHAT IS POLITICALLY ACCEPTABLE AND WHAT CORPORATIONS CAN RELIABLY PROVIDE WHILE MAKING MONEY EVEN SO THE MOVEMENT CAN SERVE AT THE VERY LEAST AS A BENCHMARK FOR REINVENTING GOVERNMENT SERVICES WHERE TAXSUPPORTED UNITS OPERATE WITH CONSIDERABLE COHESION AND ESPRIT DE CORPS AS IS OFTEN TRUE OF FIRE DEPARTMENTS IT MAY BE DIFFICULT FOR OPERATIONS SUCH AS RURAL/METRO TO MAKE RAPID HEADWAY HOWEVER THE DEMANDS OF THE PUBLIC FOR LAW AND ORDER INCARCERATION POLICIES AND PERSONAL PROTECTION AS CLOSE AS DIALING 911 ARE GOING TO MORE THAN THE TAX BASES OF MANY JURISDICTIONS CAN BEAR IN THIS AGE OF PUBLICSECTOR UNIONISM OPPORTUNISTIC COMPETITORS WILL BE CALLED TO THE RESCUE 9306220089 930622 REVIEW & OUTLOOK EDITORIAL SHAPE UP OR SHIP OUT WE MAY BE PASSING THROUGH ONE OF THE GREAT TRANSFORMATIONS IN THE HISTORY OF POPULAR GOVERNANCE IT IS SIMPLY IMPOSSIBLE NOT TO NOTICE THAT SOMETHING PROFOUND IS SHAKING THE STATUS QUO BENEATH THE POLITICAL ESTABLISHMENT IN MANY OF THE WORLD'S SIGNIFICANT NATIONS JAPAN'S LONGPOWERFUL LIBERAL DEMOCRATS ARE FEELING THE HEAT OF VOTER ANGER OVER CORRUPTION WHICH EXPLAINS WHY A PARTY REBELLION WRECKED KIICHI MIYAZAWA'S GOVERNMENT LAST WEEK FRENCH VOTERS FED UP WITH SCANDALS AMPUTATED FRANCOIS MITTERRAND'S PARLIAMENTARY LEFT ARM A FEW WEEKS AGO VOTERS HERE IN THE US SEIZE ALMOST EVERY CHANCE TO VOTE FOR TERM LIMITS AS THEY CHAFE AT THE DIFFICULTY OF DISLODGING CONGRESSIONAL INCUMBENTS AND BREAKING THE POWER OF THE BELTWAY NO COUNTRY IS FEELING THE POLITICAL GROUND SHIFT MORE PALPABLY THAN ITALY IN SUNDAY'S SECONDROUND LOCAL ELECTIONS THE UPSTART NORTHERN LEAGUE CRYING FOR THE BLOOD OF MAJOR PARTY POLITICIANS CAPTURED CITY HALLS IN MILAN ITALY'S SECOND LARGEST CITY AND FIVE OTHER NORTHERN CITIES IN INDUSTRIAL TURIN THE FORMER COMMUNISTS OF THE DEMOCRATIC PARTY OF THE LEFT TOOK CHARGE AS THEY DID IN A NUMBER OF OTHER CITIES THE CANDIDATE OF THE CHRISTIAN DEMOCRATS THE PARTY THAT FOR YEARS HAS DEPENDED UPON HEAVY SUPPORT IN THE SOUTH FOR ITS DOMINATION OF ITALIAN POLITICS DIDN'T EVEN MAKE IT TO THE SECOND ROUND IN A PROTOTYPICAL SOUTHERN CITY CATANIA ON SICILY'S EAST COAST THE PARTY'S RUMORED TIES TO THE MAFIA DID IT IN AS TWO MINORPARTY ANTIMAFIA CANDIDATES EMERGED TO FIGHT FOR THE MAYOR'S CHAIR IT SEEMS THAT ITALIAN VOTERS OF WHOM SOME 11 MILLION TURNED OUT FOR THE FIRST ROUND ARE MAKING THEIR MESSAGE TO INCUMBENTS CLEAR GET LOST THIS BLUNTLY IS THE MESSAGE THAT IS ECHOING AROUND THE WORLD ITALY'S PARLIAMENT HAS FOR YEARS BEEN A CLUBBY PLACE THE DOMINANT CHRISTIAN DEMOCRATS AND SOCIALISTS AWARDED TOKEN ROLES TO 15 OR SO OTHER PARTIES VOTERS WERE ONLY ENTITLED TO VOTE FOR PARTIES WHICH IN TURN SELECTED MPS PROPORTIONAL REPRESENTATION GAVE EVERY PARTY A PIECE OF THE ACTION THE SAME OLD FACES TURNED UP YEAR AFTER YEAR HANDING OUT PATRONAGE ON A MASSIVE SCALE IN THIS MONTH'S MAYORAL RACES VOTERS FOR THE FIRST TIME WERE ALLOWED TO VOTE DIRECTLY FOR CANDIDATES SOMETHING THEY OVERWHELMINGLY DEMANDED IN THE NOWFAMOUS APRIL REFERENDUMS THE RESULT WAS A DEBACLE FOR CHRISTIAN DEMOCRATS AND SOCIALISTS OF COURSE THE REFORM PARTIES NOW WILL HAVE TO DEMONSTRATE SOME COMPETENCE THEMSELVES IF THEY ARE TO PUSH THEIR ADVANTAGE MILAN'S NEW MAYOR IS A FORMER EUROPEAN COMMUNITY BUREAUCRAT TURIN'S NEW CHIEF WAS A UNIVERSITY PROFESSOR THE NORTHERN LEAGUE WITH ITS ANTIIMMIGRANT STANCE AND ONETIME PUSH FOR SPLITTING ITALY INTO THREE PARTS IS RADICAL AS WELL AS REFORMIST WHATEVER THE COURSE NO ONE CAN DENY THE WINDS OF CHANGE VOTERS ARE HOLDING THEIR POLITICIANS TO A HIGHER STANDARD IT IS A COMPELLING PHENOMENON TO WITNESS 9306220088 930622 JERSEY CITY NJ TAX LIEN SALE JERSEY CITY NJ THE CITY SAID IT RECEIVED 255 MILLION AS PARTIAL PAYMENT FROM THE SALE OF A BUNDLE OF 2900 UNPAID PROPERTY TAX OBLIGATIONS TO A TRUST SET UP BY FIRST BOSTON CORP THE BULK SALE OF MUNICIPAL TAX LIENS ADVANCED BY THE CITY'S MAYOR IS PART OF A NOVEL PLAN TO REDUCE PROPERTY TAXES IN JERSEY CITY IN ADDITION TO THE PARTIAL PAYMENT THE CITY WILL RECEIVE 195 MILLION FROM THE TRUST IN THE MID1990S ABOUT 10 MILLION OF THE PROCEEDS WILL BE APPLIED TO THE CITY'S FISCAL YEAR BUDGET IN 1993 AND 15 MILLION IN 1994 9306220087 930622 CHRISTIE'S TO AUCTION ITEMS FROM NUREYEV'S ESTATE NEW YORK CHRISTIE'S INTERNATIONAL PLC IS EXPECTED TO ANNOUNCE TODAY THAT THIS FALL IT WILL AUCTION OLD MASTER PAINTINGS FURNITURE AND COSTUMES FROM THE ESTATE OF BALLET LEGEND RUDOLF NUREYEV THE PROCEEDS FROM SALE OF THE ESTATE VALUED AT ABOUT 7 MILLION WILL GO TO TWO CHARITIES THE RUDOLF NUREYEV FOUNDATION AND THE BALLET PROMOTION FOUNDATION MR NUREYEV DIED IN JANUARY HIGHLIGHTS OF THE ESTATE INCLUDE A PAINTING BY SIR JOSHUA REYNOLDS AND COSTUMES WORN BY MR NUREYEV THE AUCTIONS WILL BE HELD IN LONDON IN DECEMBER AND IN NEW YORK IN JANUARY 9306220086 930622 DRAVO GETS LIME CONTRACT PITTSBURGH DRAVO CORP SAID IT WAS AWARDED A 15YEAR CONTRACT FOR SUPPLYING LIME THAT COULD SUBSTANTIALLY BOOST THE COMPANY'S REVENUE BEGINNING IN EARLY 1995 THE CONTRACT WHICH CALLS FOR SHIPPING AN ESTIMATED 450000 TONS OF LIME A YEAR FOR USE IN AIRPOLLUTION CONTROL SCRUBBERS COULD BRING IN MORE THAN 20 MILLION A YEAR AT THE CURRENT PRICE OF 45 A TON DRAVO REPORTED REVENUE OF 273 MILLION IN 1992 THE NATURAL RESOURCE FIRM SAID IT PLANS TO INVEST 60 MILLION IN THE NEXT TWO YEARS TO EXPAND ITS PRODUCTION CAPACITY 9306220085 930622 COSTLY WAY TO REFORM WORKERS' COMP BY MICHAEL S PRITULA NOT CONTENT WITH TURNING ROUGHLY 800 BILLION OF THE US ECONOMY UPSIDEDOWN THE TASK FORCE ON NATIONAL HEALTH CARE REFORM IS REPORTEDLY PLANNING TO TOSS ANOTHER 30 BILLION TO 40 BILLION OF MEDICAL COSTS INTO THE MIX THESE WOULD BE IN LARGE PART COSTS ASSOCIATED WITH WORKERS' COMPENSATION WHICH THE TASK FORCE INTENDS TO ROLL INTO A NATIONAL HEALTH PLAN THE RESULT WOULD BE LESS WORKER SAFETY FEWER BENEFITS AND HIGHER COSTS WORKERS' COMPENSATION IS LARGELY REGULATED BY THE STATES TODAY WHEN A WORKER IS INJURED ON THE JOB STATE LAW DETERMINES THE LEVEL OF MEDICAL BENEFITS IN A NUMBER OF STATES IT IS TRUE THE WORKERS' COMPENSATION SYSTEM IS IN TROUBLE IN MAINE THE SYSTEM HAS COLLAPSED IN CALIFORNIA FRAUD AND LITIGATION ARE RAMPANT MEDICAL COSTS IN PARTICULAR ARE A RISING PORTION OF WORKERS' COMPENSATION PAYMENTS HOWEVER WORKERS' COMPENSATION DESERVES A SEPARATE REFORM EFFORT NOT BACKDOOR INCLUSION IN HILLARY'S HEALTHCARE REFORM THE TASK FORCE IS SUGGESTING THAT MEDICAL CARE FOR ONTHEJOB INJURIES BE ADMINISTERED AND FINANCED THROUGH A NEW MANAGED COMPETITION HEALTHCARE SYSTEM THIS IDEA HAS THE APPARENT ADVANTAGE OF ELIMINATING DIFFERENT FORMS OF MEDICAL COVERAGE AND IT APPEALS TO THE COMMONSENSE NOTION THAT A BROKEN LEG IS A BROKEN LEG REGARDLESS OF WHETHER IT OCCURS IN THE OFFICE OR AT HOME BUT THERE ARE SEVERAL DRAWBACKS TO THE PROPOSAL FACTORIES AND OFFICES WOULD BECOME LESS SAFE TODAY'S WORKERS' COMPENSATION SYSTEMS CONTAIN INCENTIVES TO REDUCE AND MANAGE UNDERLYING MEDICAL COSTS IN MOST STATES AN EMPLOYER OF 100 OR MORE EMPLOYEES PAYS A WORKERS' COMPENSATION PREMIUM BASED ON THE COMPANY'S ABILITY TO PROVIDE A SAFE WORKPLACE THE SAFER THE FACTORY OR OFFICE THE LOWER THE EMPLOYER'S COSTS BECAUSE OF SUCH INCENTIVES THE PRIVATE SECTOR TODAY IS DEVOTING EXTRAORDINARY ATTENTION TO REDUCING THE NUMBER OF INJURIES AND ILLNESSES IN STATES WHERE FRAUD HAS NOT RUN RAMPANT THE INCIDENCE AND SEVERITY OF WORKPLACE INJURIES ARE DECREASING IN ONE NOTABLE CASE EMPLOYERS IN OREGON HAVE REDUCED THEIR INCIDENCE OF INJURIES THREE YEARS IN A ROW THESE INCENTIVES WOULD DISAPPEAR UNDER THE TASK FORCE'S CURRENT PROPOSAL OBVIOUSLY IF THE TASK FORCE DECIDES EVERY BUSINESS WITH 100 EMPLOYEES OR MORE WILL CONTRIBUTE SAY 7 OF ITS PAYROLL TO FUND A SYSTEM OF UNIVERSAL HEALTH COVERAGE REGARDLESS OF THE NUMBER OF WORKPLACE INJURIES IT INCURS THERE WILL BE LESS INCENTIVE TO CREATE A SAFE WORKPLACE THE AFLCIO AND OTHERS HAVE URGED THE CLINTON TASK FORCE TO LINK PAYROLL FINANCING RATES TO INJURY EXPERIENCE THROUGH SOCALLED EXPERIENCERATING THEY SAY HEALTH INSURANCE PURCHASING COOPERATIVES HIPCS CAN SET DIFFERENT PAYMENT RATES BUT THIS ROLE IS PERFORMED TODAY BY THOUSANDS OF HIGHLY SKILLED ACTUARIES AND UNDERWRITERS IN THE PRIVATE SECTOR IT IS DAUNTING TO IMAGINE PUBLICSECTOR EMPLOYEES IN HIPCS THROUGHOUT THE COUNTRY WORKING DILIGENTLY TO DETERMINE WHETHER AN EMPLOYER'S PAYROLL ASSESSMENT SHOULD BE 73 OR 76 BASED ON WORKPLACE INJURY EXPERIENCE THE APPEAL PROCESS ALONE WOULD REQUIRE HORDES OF PUBLICSECTOR EMPLOYEES WHY CHANGE WHEN THE PRIVATE SECTOR FILLS THIS ROLE SO WELL ALREADY BENEFITS ARE LIKELY TO BE REDUCED IN VIRTUALLY EVERY STATE ORGANIZED LABOR HAS HELPED TO NEGOTIATE GOOD MEDICAL AND REHABILITATION COVERAGE FOR INJURED WORKERS WORKERS' COMPENSATION PROVIDES FOR FIRSTDOLLAR MEDICAL COVERAGE NO DEDUCTIBLE WITH NO COPAYMENTS AND ALLOWS FOR THE USE OF REHABILITATION SPECIALISTS AND THERAPISTS SUCH BENEFITS ARE PROHIBITIVELY EXPENSIVE WHEN EXTENDED TO ALL INJURIES AND ILLNESSES AND THUS WILL LIKELY NOT BE PART OF THE CLINTON STANDARDBENEFITS PACKAGE THAT IS TO REPLACE WORKERS' COMPENSATION EMPLOYEE LAWSUITS WILL RESULT TODAY WORKERS' COMPENSATION IS A NOFAULT SYSTEM THE COMPENSATION OF INJURED WORKERS IS ACCOMPANIED BY AN IMPORTANT QUID PRO QUO WORKERS ARE NOT ALLOWED TO SUE THEIR EMPLOYERS FOR WORKPLACE INJURIES AND ILLNESSES ALONG WITH THE REDUCED BENEFITS THE TASK FORCE IS PROPOSING SUCH LEGAL PROTECTION IS LOST AND EMPLOYERS WILL FACE GREATER LIABILITY ADMINISTRATIVE COSTS WOULD GO UP NOT DOWN AS IT IS NOW CONSTITUTED WORKERS' COMPENSATION DELIVERS MONEY TO WORKERS TO REPLACE LOST SALARY DOLLARS EVEN IF THE CLINTON HEALTH PACKAGE TAKES OVER THE MEDICAL PART OF WORKERS' COMPENSATION THE CURRENT ADMINISTRATIVE INFRASTRUCTURE WILL BE NEEDED TO ADMINISTER SALARY REPLACEMENT STATE WORKERS' COMPENSATION BOARDS WILL STILL BE NEEDED TO DETERMINE COMPENSABILITY INSURANCE CARRIERS WILL STILL BE NEEDED TO ADMINISTER THE SALARY REPLACEMENT PORTION OF THE PROGRAM THUS ANOTHER LAYER OF BUREAUCRACY FOR THE HEALTHCARE PART OF THE SYSTEM WOULD BE ADDED TO THE ONE ALREADY IN PLACE HIGHER ADMINISTRATIVE COSTS WOULD RESULT HEALTHCARE COSTS WOULD RISE TOO EVEN IF HEALTH BENEFITS TO INJURED WORKERS ARE REDUCED IT IS LIKELY THAT PRESSURE FROM UNIONS WILL EXTEND SOME FEATURES OF WORKERS' COMPENSATION MEDICAL COVERAGE TO THE BROAD POPULATION WITH EACH ADDED FEATURE THE 800 BILLION NATIONAL HEALTHCARE TAB WILL GROW THERE IS AN ALTERNATIVE TO THIS BAD IDEA THE CLINTON ADMINISTRATION WOULD DO BETTER TO SUPPORT STATES THAT LEGISLATE GOOD WORKERS' COMPENSATION PROGRAMS ESPECIALLY PROGRAMS THAT BUILD INCENTIVES FOR WORKPLACE SAFETY IF THE ADMINISTRATION SEEKS GREATER UNIFORMITY IT CAN WORK TO END THE DISPARITIES IN BENEFIT LEVELS BETWEEN STATES WHILE ALLOWING EMPLOYERS TO SELFINSURE IF THEY DESIRE ALTERNATIVELY FEDERAL STANDARDS COULD BE SET FOR DETERMINING WHAT INJURIES SHOULD BE COMPENSATED FOR THE USE OF MANAGEDCARE TECHNIQUES IN THE TREATMENT OF INJURIES AND FOR DISPUTERESOLUTION PROCEDURES GREATER CONSISTENCY IN THESE AREAS IS A WORTHY GOAL FOR WORKERS' COMPENSATION REFORM IN THE ABSENCE OF SUCH EFFORTS WE CAN ONLY HOPE THAT THE WORKERS' COMPENSATION PART OF THE CLINTON HEALTH PACKAGE IS REALLY JUST A BARGAINING CHIP WITH LABOR OR THE STATES AND THAT THERE IS LITTLE SERIOUS INTENT BEHIND IT MR PRITULA IS A PARTNER IN THE NEW YORK OFFICES OF MCKINSEY & CO 9306220084 930622 COMPUTER NETWORK TECHNOLOGY MAPLE GROVE MINN COMPUTER NETWORK TECHNOLOGY CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE ULTRA NETWORK TECHNOLOGIES INC FOR 432000 OF ITS COMMON SHARES VALUED AT ABOUT 28 MILLION ULTRA NETWORK A PRIVATELY HELD SAN JOSE CALIF MAKER OF ELECTRONICRELATED GEAR HAD 1992 REVENUE OF ABOUT 13 MILLION COMPUTER NETWORK TECHNOLOGY WITH 1992 REVENUE OF ABOUT 34 MILLION MAKES HIGHSPEED CHANNEL NETWORKING SYSTEMS THE ACQUISITION IS EXPECTED TO BE COMPLETED EARLY NEXT MONTH BUT MUST BE APPROVED BY ULTRA NETWORK SHAREHOLDERS 9306220083 930622 MISSOURI THRIFT CONSIDERS SALE ST LOUIS HOME FEDERAL BANCORP OF MISSOURI INC SAID IT IS EXPLORING THE POSSIBLE SALE OF THE THRIFT HOLDING COMPANY HOME FEDERAL WITH ASSETS OF 5198 MILLION SAID DIRECTORS HIRED CHICAGO CORP AS A FINANCIAL ADVISER TO CONSIDER ALTERNATIVES TO ENHANCE SHAREHOLDER VALUE INCLUDING ITS POSSIBLE SALE SEPARATELY THE COMPANY SAID IT EXPECTS EARNINGS FOR THE THIRD QUARTER ENDING JUNE 30 OF 82 CENTS TO 87 CENTS A SHARE A YEAR EARLIER THE COMPANY EARNED 2 MILLION OR 91 CENTS A SHARE INCLUDING A TAX REFUND OF 871000 HOME FEDERAL'S DISCLOSURE CAME AFTER THE CLOSE OF THE MARKET YESTERDAY IN NATIONAL OVERTHECOUNTER TRADING HOME FEDERAL SLIPPED 1 TO CLOSE AT 1650 9306220082 930622 HOUSE BILL SEEKS TO INCREASE DISCLOSURE ON MUNICIPAL BONDS SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE CHAIRMAN OF THE HOUSE BANKING COMMITTEE AND THE RANKING GOP MEMBER INTRODUCED A BILL DESIGNED TO BEEF UP DISCLOSURE IN THE MUNICIPAL BOND MARKET INCLUDING THE LISTING OF POLITICAL CONTRIBUTIONS MADE BY UNDERWRITERS TO STATE AND LOCAL OFFICIALS THE LEGISLATION INTRODUCED BY REP HENRY GONZALEZ D TEXAS THE COMMITTEE'S CHAIRMAN AND REP JIM LEACH R IOWA THE PANEL'S SENIOR REPUBLICAN IS EXPECTED TO BE A SOURCE OF JURISDICTIONAL FRICTION BETWEEN THE BANKING COMMITTEE AND THE ENERGY AND COMMERCE COMMITTEE WHICH IS HEADED BY REP JOHN DINGELL D MICH THE TWO PANELS HAVE BEEN INVOLVED IN A TURF BATTLE OVER VARIOUS PROPOSALS INCLUDING LEGISLATION TO REGULATE THE GOVERNMENT SECURITIES MARKET REPS DINGELL AND EDWARD MARKEY D MASS RECENTLY WROTE THE SECURITIES AND EXCHANGE COMMISSION AND OTHER REGULATORS ASKING THEM TO ASSESS THE ADEQUACY OF MUNICIPAL MARKET REGULATION IN LIGHT OF ALLEGATIONS OF ILLEGAL PAYOFFS AND OTHER POSSIBLE VIOLATIONS IN CONNECTION WITH A 29 BILLION NEW JERSEY TURNPIKE BOND ISSUE AS WELL AS OTHER MATTERS SPECIFICALLY REPS DINGELL AND MARKEY ARE TRYING TO DETERMINE WHETHER THE SOCALLED TOWER AMENDMENT SHOULD BE REPEALED IN WHOLE OR IN PART THE REGULATORS' RESPONSES ARE EXPECTED LATER THIS SUMMER THE LEACHGONZALEZ MEASURE WOULD REPEAL THE TOWER AMENDMENT A 1975 ENACTMENT THAT EXEMPTS STATE AND LOCAL ISSUERS OF MUNICIPAL SECURITIES FROM FILING BOND OFFERING DISCLOSURE DOCUMENTS WITH REGULATORS UNDER THAT BILL UNDERWRITERS BOND LAWYERS AND OTHER BOND MARKET PROFESSIONALS WOULD BE REQUIRED TO DISCLOSE ALL POLITICAL CONTRIBUTIONS MADE TO ELECTED OFFICIALS OF THE MUNICIPALITY OR STATE WHOSE SECURITIES THEY ARE UNDERWRITING 9306220081 930622 REVIEW & OUTLOOK EDITORIAL MEANWHILE AL GORE A BUCKET OF WARM SPIT IS HOW AN INCUMBENT ONCE DESCRIBED THE VICE PRESIDENT'S JOB IN AL GORE'S CASE YOU MIGHT CALL IT A PETRI DISH BUT UNDER ANY DESCRIPTION THIS VICE PRESIDENT IS MAKING HIMSELF A POWER IN HIS CHOSEN BAILIWICK OF SCIENCE AND TECHNOLOGY THE PROBLEM WITH MR GORE IS THAT HIS TECHNOPHILE AND TECHNOPHOBE SIDES ARE CONSTANTLY AT WAR ONE BATTLEGROUND THAT BEARS WATCHING IS BIOTECHNOLOGY AN INDUSTRY WITH BOUNDLESS POTENTIAL MR GORE'S DEEP THOUGHTS ARE ON DISPLAY IN A REMARKABLE ARTICLE IN THE FALL 1991 ISSUE OF THE HARVARD JOURNAL OF LAW & TECHNOLOGY CLOSE YOUR EYES AND YOU'LL SWEAR IT'S THE VOICE OF JEREMY RIFKIN BIOTECH IS A POWERFUL AND THREATENING TOOL MR GORE WROTE SO BETTER BRING IN THE POLITICIANS TO DECIDE WHETHER OUR ABILITY TO MANIPULATE THE BASIC PROCESSES OF LIFE WILL BENEFIT THE WORLD COMMUNITY MR GORE ISN'T WORRIED ABOUT KILLER TOMATOES OR THE HATCHING OF SOME ANDROMEDA STRAIN THIS IS ABOUT SOCIAL ENGINEERING THE PROCESS OF OPENENDED MARKETDRIVEN SCIENTIFIC DISCOVERY WHAT HE CALLED SELLING THE TREE OF KNOWLEDGE TO WALL STREET WOULD BE DITCHED IN FAVOR OF A FUTURE THAT HAS TO BE VETTED BY BUREAUCRATS THIS TENDENCY POPS UP IN CONNECTION WITH BOVINE GROWTH HORMONE WHICH HELPS COWS PRODUCE MORE MILK MR GORE DOESN'T BOTHER TO CITE ANY HEALTH OR SAFETY RISK HE WORRIES INSTEAD THAT BETTER COWS MAY RUN SOME FAMILY FARMS OUT OF BUSINESS OR UPSET THE GOVERNMENT'S MILK SUBSIDY PROGRAM GIVEN THAT COWS CONTRIBUTE TO EVERYTHING FROM SOIL EROSION TO SOCALLED GREENHOUSE GASES SUBJECTS THAT PREOCCUPIED MR GORE DURING HIS SPEECH TO THE UN TWO WEEKS AGO YOU'D EXPECT HIM TO WELCOME ANYTHING THAT REDUCED HERD SIZE BUT HIS FIRST CONCERN IS WITH CONTROLLING PEOPLE MR GORE WOULDN'T LET BIOTECH OUT OF THE BAG UNLESS IT ENHANCES THE ECONOMIC VIABILITY OF EXISTING COMMUNITIES AND INTERESTS ARE THESE LUDDITE IMPULSES DRIVING POLICY IN THE CLINTON ADMINISTRATION WE THINK WE KNOW ONE GOOD PLACE TO SEARCH FOR CLUES TAKE A LOOK AT WASHINGTON'S MOST SENSITIVE POLITICAL WEATHERVANE WE MEAN OF COURSE FDA COMMISSIONER DAVID KESSLER FINALLY FREED OF REPUBLICAN DEREGULATORY RESTRAINTS DR KESSLER IS JUMPING WITH BOTH FEET INTO THE CONTROVERSIES OVER BOVINE GROWTH HORMONE AND FOOD LABELING HE WAGGED HIS FINGER BEFORE A BIOTECH GROUP IN APRIL BLAMING THEM FOR NOT INVITING HIS MEDDLING SOONER THE PROPONENTS OF GENETIC ENGINEERING HAVE SOUGHT THE PUBLIC'S TRUST HE ORATED YET HAVE NOT SOUGHT THE OVERSIGHT AND OPENNESS THAT BUILDS THAT TRUST PURE GORE DR KESSLER ALSO HAS A NEW FLACK JAMES O'HARA HUSBAND OF GORE SPOKESPERSON MARLA ROMASH AND A NEW BIOTECH ADVISER JERRY MANDE PREVIOUSLY A SENATE AIDE TO MR GORE THEN THERE IS MR GORE'S DOMESTIC POLICY ADVISER GREG SIMON WHO IN SPEECHES HAS PROPOSED ROUNDING UP THE INDUSTRY'S OPPONENTS FOR A BIOTECH VERSION OF THE NORTHWEST SUMMIT ON FORESTS IN HIS LAST JOB AS A HILL STAFFER MR SIMON DRAFTED A SWEEPING BIOTECH REGULATION BILL THAT IN THE WORDS OF ONE MEDICAL RESEARCHER WAS LIKE SOMETHING OUT OF KAFKA FORTUNATELY IT DIED IN COMMITTEE ELLEN HAAS USDA'S NEW CHIEF OF FOOD AND NUTRITION IS ANOTHER GORE PROTEGE WHO HAS SLIPPED INTO THE LOOP SHE WAS PREVIOUSLY TO BE FOUND AT PUBLIC VOICE FOR FOOD AND HEALTH POLICY A GROUP THAT HOSTED AN ANNUAL BASHBIOTECHNOLOGY CONFERENCE AS WE SAY THESE FOLKS BEAR WATCHING WE'RE HAPPY TO REPORT THAT THE EARLY SIGNS AREN'T ENTIRELY DISCOURAGING HOWEVER MESSRS GORE AND SIMON BOTH SIGNED OFF ON NEW REGS ROLLED OUT BY USDA TO LIGHTEN THE BURDEN ON AT LEAST SOME BIOTECH FIELD TESTS NOW SOMETHING LIKE 85 OF EXPERIMENTS CAN PROCEED WITHOUT THE RIGMAROLE OF GETTING A FEDERAL PERMIT THOUGH THE BENEFIT WILL GO MOSTLY TO A HANDFUL OF BIG COMPANIES WITHOUT DOING MUCH FOR CUTTINGEDGE ACADEMIC AND ENTREPRENEURIAL RESEARCH ALSO MR SIMON WAS IN BRUSSELS RECENTLY AND TOLD THE EUROPEANS TO GET OVER THEIR SUPERSTITIONS AND OPEN THEIR MARKETS TO AMERICAN SCIENCE THESE GLIMMERINGS HAVE THE SCIENCE PHOBES FLUMMOXED WE'RE TRYING TO READ THE TEA LEAVES SIGHS MARGARET MELLON AN ANTIBIOTECH CAMPAIGNER WITH THE NATIONAL WILDLIFE FEDERATION MR SIMON APPARENTLY CAN'T COME TO THE PHONE RIGHT NOW BUT A COLLEAGUE ON THE WHITE HOUSE SCIENCE STAFF INFORMS US THAT BOTH HE AND MR GORE HAVE EVOLVED SINCE THE WOOLLY DAYS WHEN MR GORE WAS CONTRIBUTING GLOWING BOOKJACKET BLURBS FOR JEREMY RIFKIN AUTHOR OF THE GENOPHOBIC DIATRIBE ALGENY THIS EVOLUTION WOULD BE NICE IF TRUE ONE TEST WILL BE WHETHER FDA FINALLY APPROVES BOVINE GROWTH HORMONE WHICH HAS ALREADY RECEIVED THE BLESSING OF AN AGENCY ADVISORY COMMITTEE THE NATIONAL SCIENCE FOUNDATION AND OTHERS HAVE COME OUT SAYING THAT BIOTECH HOLDS NO SPECIAL DANGERS BEYOND THOSE ASSOCIATED WITH OTHER FOOD AND MEDICAL TECHNOLOGIES THE REAL PROBLEM LIES IN PUBLIC PARANOIA AS STOKED BY THE RIFKINITES AND HOLLYWOOD'S PROPENSITY TO SEE JURASSIC MAYHEM BEHIND EVERY TECHNOLOGY IT DOESN'T UNDERSTAND HAVING RISEN TO A POSITION OF SOME IMPORTANCE LET US HOPE THAT MR GORE CAN PUT ASIDE HIS TECHNOPESSIMISM AND CONCENTRATE ON HELPING THE WONDERS OF THIS NEW TECHNOLOGY UNFOLD 9306220080 930622 REVIEW & OUTLOOK EDITORIAL ASIDES THE FDA'S EMPIRE WE NOTE IN THE LEAD EDITORIAL HOW THE ELECTION OF AL GORE HAS PROVIDED FDA COMMISSIONER DAVID KESSLER WITH A MORE SYMPATICO VICE PRESIDENT THE FDA IS NOW DEMANDING THAT RESTAURANTS ADVERTISING LITE ITEMS EXPLAIN ON THEIR MENUS PRECISELY WHY THEY ARE MAKING THIS CLAIM WITH RECIPES AT THE READY AS SUPPORTING EVIDENCE NO DOUBT SOME FORMER FDA OFFICIALS ARE ALREADY FORMING CONSULTANCIES TO CHARGE AL'S DINER A SUM FOR HELP IN COMPLYING WITH THIS IT IS ALSO WORTH NOTING THAT THE BUSH ADMINISTRATION EXEMPTED RESTAURANTS FROM THESE FOODLABELING RULES SUGGESTING STRONGLY THAT WHERE REPUBLICANS ARE AT LEAST PARTLY SENSITIVE TO THE REGULATORY LOAD ON SMALL BUSINESS A DEMOCRATIC ADMINISTRATION WOULDN'T EVEN BEGIN TO NOTICE 9306220079 930622 WHO'S NEWS FEDERATED DEPARTMENT STORES INC FEDERATED DEPARTMENT STORES INC CINCINNATI RUSSELL STRAVITZ 45 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OF THE ATLANTABASED RICH'S/GOLDSMITH'S DIVISION OF THIS MAJOR DEPARTMENT STORE RETAILER HE SUCCEEDS CARL TOOKER 46 WHO RECENTLY RESIGNED TO PURSUE ANOTHER BUSINESS VENTURE AS CHAIRMAN MR STRAVITZ WILL MAINTAIN RESPONSIBILITY FOR THE 884 MILLION DIVISION'S MERCHANDISING ORGANIZATION AND UNTIL A NEW PRESIDENT AND CHIEF OPERATING OFFICER ARE NAMED HE WILL ASSUME RESPONSIBILITY FOR OPERATIONS HUMAN RESOURCES FINANCE AND STORES 9306220078 930622 AZERBAIJAN UNREST CAUSES DISRUPTIONS FOR ENERGY FIRMS BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON THE CIVIL UNREST IN THE FORMER SOVIET REPUBLIC OF AZERBAIJAN IS DISRUPTING WESTERN OIL DEVELOPMENT IN THE CASPIAN SEA AND COULD ALTER PIPELINE PLANS FROM KAZAKHSTAN'S SIDE OF THE SEA SEVERAL ENERGY COMPANIES INCLUDING AMOCO CORP PENNZOIL CO AND MCDERMOTT INTERNATIONAL INC SAID THEY EVACUATED THEIR STAFF FROM AZERBAIJAN THESE COMPANIES ALONG WITH OTHER WESTERN PARTNERS ARE SCHEDULED TO MEET IN LONDON LATER THIS WEEK TO NEGOTIATE A PRODUCTIONSHARING AGREEMENT ON DEVELOPMENT OF THREE FIELDS THAT COULD CONTAIN 44 BILLION BARRELS OF OIL OVER THE WEEKEND REBEL FORCES ADVANCED ON THE COUNTRY'S CAPITAL BAKU AND PRESIDENT ABULFAZ ELCIBEY FLED THE PARLIAMENT DECLARED ITS SUPPORT FOR THE REBEL LEADER BUT AS OF LATE YESTERDAY IT WASN'T CLEAR WHO WAS RUNNING THE COUNTRY AZERBAIJAN'S UNREST REFLECTS A PRIME EXAMPLE OF SOME OF THE CHALLENGES AND SLOWDOWNS OIL COMPANIES FACE IN DEVELOPING THE HUGE RESERVES OF THE FORMER SOVIET UNION EVEN AFTER THE CRISIS IS RESOLVED FOR THE OIL COMPANIES THE SPENDING WILL BE SLOWER THAN MIGHT OTHERWISE BE EXPECTED SAID FRANK KNUETTEL AN ANALYST WITH PRUDENTIAL SECURITIES INC DIRECTORS MAY NOT BE QUITE AS WILLING AS IN THE FIRST BLUSH TO GO RAPIDLY AHEAD WITH DEVELOPMENT PLANS WHICH WILL RUN INTO THE BILLIONS OF DOLLARS HE ADDED BUT THE COMPANIES INSISTED THAT THE LATEST POLITICAL DEVELOPMENTS WON'T AFFECT THEIR PLANS THE PROJECTS ARE SO LONGTERM SAID A SPOKESMAN FOR AMOCO THAT THE UNREST SHOULD HAVE LITTLE OVERALL IMPACT A SPOKESWOMAN FOR ANOTHER PARTNER UNOCAL CORP WHICH DIDN'T EVACUATE ANY PERSONNEL SAID OUR REPORTS FROM OUR BAKU OFFICE SAID THERE IS NOTHING TO BE SEEN IN TERMS OF UNREST SEVERAL COMPANIES SAID THE PROJECT'S LARGEST PARTNER THE STATE OIL CO OF AZERBAIJAN OR SOCAR IS CONTINUING TO OPERATE OUR SENSE IS THAT ALL THE PARTIES ARE INTERESTED IN CONCLUDING THE AGREEMENT AS SOON AS POSSIBLE A PENNZOIL SPOKESMAN SAID THE UNREST HOWEVER COULD AFFECT CHEVRON CORP'S GIANT JOINT DEVELOPMENT OF THE TENGIZ OILFIELD IN KAZAKHSTAN NEAR THE EASTERN SHORE OF THE CASPIAN SEA CHEVRON IS PUMPING OIL FROM THE FIELD AND IS WEIGHING SEVERAL OPTIONS FOR A PIPELINE SO IT CAN EXPORT THE CRUDE ONE PIPELINE GROUP THAT WOULD TRANSPORT THE OIL WEST TO A BLACK SEA PORT INCLUDES AZERBAIJAN BUT A CHEVRON SPOKESMAN SAID THE AZERIS HAVEN'T BEEN ACTIVE IN DISCUSSIONS OR PLANNING ANOTHER PIPELINE WOULD GO THROUGH THE COUNTRY A CHEVRON SPOKESMAN SAID THERE ARE THREE OR FOUR DIFFERENT ROUTES SOME OF WHICH HAVE NOTHING TO DO WITH AZERBAIJAN 9306220077 930622 FOREIGN EXCHANGE LONGAWAITED DOLLAR RECOVERY MAY BE UNDER WAY IN EUROPE BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON ARE THE DOLLAR'S GAINS OF THE PAST FEW DAYS THE BEGINNING OF THE LONGAWAITED DOLLAR RECOVERY VERY POSSIBLY AGAINST THE MARK AND OTHER EUROPEAN CURRENCIES BUT PROBABLY NOT AGAINST THE YEN SAY ECONOMISTS AND TRADERS COMPARED WITH EUROPEAN CURRENCIES THE DOLLAR IS IN A TOTALLY NEW TREND TECHNICALLY AND ALSO FUNDAMENTALLY WE ARE NOW IN A MEDIUM TO LONGTERM DOLLAR ADVANCE SAYS MANFRED TOTZAUER A SENIOR TRADER AT CITIBANK AG IN FRANKFURT THE MAIN REASON IS DEUTSCHE MARK WEAKNESS PEOPLE WORLDWIDE NOW REALIZE WHAT BIG TROUBLE GERMANY IS IN IN LATE NEW YORK TRADING YESTERDAY THE DOLLAR STOOD AT 16883 MARKS AND 11060 YEN UP FROM 16810 MARKS AND 10975 YEN BEFORE THE WEEKEND THE BRITISH POUND FELL TO 14886 FROM 14970 LATE FRIDAY ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 11123 YEN AND AT 16876 MARKS TRADERS ATTRIBUTED MUCH OF THE DOLLAR RISE TO INCREASINGLY BEARISH SENTIMENT ABOUT THE WEAKENING GERMAN ECONOMY AND POLITICAL TURMOIL IN JAPAN AFTER LOSING A NOCONFIDENCE VOTE JAPANESE PRIME MINISTER KIICHI MIYAZAWA ON FRIDAY WAS FORCED TO CALL FOR NEW PARLIAMENTARY ELECTIONS TO BE HELD ON JULY 18 THE POLITICAL EVENTS IN TOKYO WERE A COMPLETE SURPRISE AND THAT TRIGGERED A LOT OF SHORTCOVERING BY INTERBANK TRADERS WHO HAD BET THE YEN WOULD KEEP RISING PARTICULARLY BECAUSE OF THE ONGOING TRADE TENSION BETWEEN THE US AND JAPAN SAYS SHAUN OSBORNE LONDONBASED CHIEF FOREIGNEXCHANGE ANALYST AT TECHNICAL DATA A UNIT OF THOMSON FINANCIAL SERVICES MEANWHILE MANY ANALYSTS PREDICT THE GERMAN ECONOMY EUROPE'S BIGGEST WILL CONTRACT BY 2 THIS YEAR SOME EVEN FORECAST A 3 DECLINE WHILE MOST OF THE REST OF EUROPE IS ALSO MIRED IN RECESSION THAT THEY CONTEND WILL SOONER OR LATER FORCE THE SOFAR RELUCTANT BUNDESBANK TO LOWER INTEREST RATES UNDERMINING THE MARK AS EVIDENCE THEY NOTE THAT MANY EUROPEAN COUNTRIES HAVE BEGUN CUTTING RATES ON THEIR OWN NOT WAITING FOR A LEAD FROM GERMANY YESTERDAY CENTRAL BANKS IN THE NETHERLANDS FRANCE AND BELGIUM REDUCED KEY INTEREST RATES FRANCE ALONG WITH PORTUGAL ALSO LOWERED MONEY MARKET RATES LAST WEEK ITALY CUT ITS DISCOUNT RATE 11 DAYS AGO THE US CURRENCY'S RISE IS ALSO FEEDING ON ITSELF AS THE DOLLAR CLIMBS ABOVE KEY LEVELS ON CHARTS TRADERS USE TO PREDICT CURRENCY MOVEMENTS MORE AND MORE INVESTORS HAVE PILED ON THE BANDWAGON DURING THE PAST WEEK THE DOLLAR HAS SOARED MORE THAN 5 AGAINST THE YEN AND ALMOST 4 AGAINST THE MARK BEFORE RETREATING ON PROFITTAKING THE DOLLAR YESTERDAY TRADED AS HIGH AS 16965 MARKS A 20MONTH HIGH AND 11190 YEN WE'VE GONE UP TO LEVELS NOW THAT ARE BEGINNING TO TRIGGER A FUNDAMENTAL REAPPRAISAL OF HOW THE FOREIGNEXCHANGE MARKET OPERATES SAYS PAUL CHERTKOW HEAD OF GLOBALCURRENCY RESEARCH AT UNION BANK OF SWITZERLAND IN LONDON NOTING THAT THE DOLLAR HAS TRENDED LOWER FOR EIGHT YEARS AND ESPECIALLY FROM THE TWOMARK LEVEL IN 1989 HE SAYS TRADERS HAVE COME IN EACH DAY AND ASKED AT WHAT LEVEL WE SHOULD SELL DOLLARS NO MORE HE CONTENDS NOW THE MARKET IS BEGINNING TO ASK WHETHER THE DOLLAR MAY BE EMBARKING ON A NEW UPTREND BOTH MR CHERTKOW AND CITIBANK'S MR TOTZAUER SEE THE US CURRENCY RISING TO 172 MARKS WITHIN SIX WEEKS BOLSTERING IT THEY SAY WILL BE THE GROWING NEGATIVE ASSESSMENT OF GERMANY'S ECONOMY A STRONGER US ECONOMIC OUTLOOK AND STATEMENTS LAST WEEK BY FEDERAL RESERVE GOVERNOR WAYNE ANGELL INDICATING FED CONCERN OVER US INFLATIONARY PRESSURES WHAT'S MORE MR CHERTKOW PREDICTS THE DOLLAR WILL RISE TO 185 MARKS OR ROUGHLY ANOTHER 10 WITHIN A YEAR THAT'S BECAUSE HE EXPECTS THE FED TO RAISE THE FEDERAL FUNDS RATE WHICH US BANKS CHARGE EACH OTHER FOR SHORTTERM LOANS A QUARTERPOINT IN AUGUST OR SEPTEMBER HE SAYS THE FED'S MOTIVE WILL BE TO REASSERT THE FED'S POLITICAL INDEPENDENCE AND TEMPER INFLATIONARY FEARS GIORGIO RADAELLI AN INTERNATIONAL ECONOMIST AT LEHMAN BROTHERS INTERNATIONAL IS ALSO BULLISH ON THE DOLLAR AGAINST THE MARK HE DOESN'T SEE IT CLIMBING HIGHER THAN 175 MARKS IN THE NEAR TERM BUT LONGERRUN ALL THE FUNDAMENTALS ARE CLEARLY IN FAVOR OF THE DOLLAR HE SAYS ECONOMIC MODELS INDICATE THE DOLLAR SHOULD REACH TWO MARKS OR EVEN GO BEYOND TWO MARKS IN A YEAR TO TWO AND HALF YEARS FROM NOW HE SAYS THAT RULES OUT ANY SIGNIFICANT SETBACK FOR THE DOLLAR IRRESPECTIVE OF HOW SLOW THE BUNDESBANK IS IN CUTTING INTEREST RATES IN GERMANY AND HE PREDICTS THAT COME SEPTEMBER THE BUNDESBANK WILL HIT THE PANIC BUTTON AND START CUTTING RATES VERY SHARPLY TO RECHARGE THE GERMAN ECONOMY ANALYSTS ARE LESS SANGUINE ABOUT THE DOLLAR'S PROSPECTS AGAINST THE YEN MOST SEE IT CLIMBING NO HIGHER THAN 115 TO 117 YEN ROUGHLY FOUR YEN TO SIX YEN ABOVE CURRENT LEVELS AND THEY PREDICT JAPAN WILL OVERCOME ITS CURRENT POLITICAL DIFFICULTIES FURTHERMORE THE FUNDAMENTALS IN JAPAN ARE SO GOOD JAPAN'S ECONOMY IS GOING TO RECOVER BEFORE GERMANY'S JAPAN HAS LOW INFLATION AND IT HAS A VERY STRONG CURRENT ACCOUNT POSITION SAYS MR CHERTKOW OF UBS THIS WILL LIMIT THE SCOPE FOR THE DOLLAR TO RECOVER AGAINST THE YEN EVEN THE MOST BULLISH TRADERS AND ANALYSTS WARN THAT THE DOLLAR WON'T CLIMB IN A STRAIGHT LINE AGAINST THE MARK AND MANY PREDICT A CORRECTION POSSIBLY EVEN A SEVERE ONE TRIGGERED BY PROFITTAKING STILL LONGERTERM THE DOLLAR IS LOOKING PRETTY GOOD PARTICULARLY AGAINST THE EUROPEANS SAYS MR OSBORNE OF TECHNICAL DATA ECONOMIC WEAKNESS IN EUROPE AND RECOVERY IN THE US SHOULD GIVE THE DOLLAR DECENT SUPPORT PETER G ROGGE CHIEF ECONOMIST AT SWISS BANK CORP IN BASEL ISN'T SO SURE HE AGREES THAT GERMANY'S DEEPENING ECONOMIC DIFFICULTIES WILL PROMPT THE BUNDESBANK TO CUT INTEREST RATES SHARPLY AND WHILE HE SAYS THE DOLLAR SHOULD CLIMB TO 175 MARKS IN THE NEXT THREE MONTHS HE SEES IT BACK AT 170 MARKS A YEAR FROM NOW IN 1994 WE WOULD EXPECT THE DOLLAR TO RETURN TOWARD PURCHASING POWER PARITY AS BUSINESS CYCLES BETWEEN THE US AND EUROPE BEGIN TO SYNCHRONIZE SAYS MR ROGGE HE PUTS THE DOLLAR'S PURCHASING POWER PARITY WHICH COMPARES THE COSTS OF A SIMILAR BASKET OF GOODS IN DIFFERENT COUNTRIES AT ABOUT 170 MARKS I DON'T THINK WE'RE IN FOR A RALLY THAT WILL COVER THE LONGER TERM SAYS MR ROGGE THE DOLLAR'S CURRENT VIGOR RELATES MORE TO GERMAN WEAKNESS THAN US ECONOMIC STRENGTH THAT'S WHY I DON'T THINK WE'RE AT THE BEGINNING OF LONGERTERM TREND CARL WEINBERG CHIEF ECONOMIST AT HIGH FREQUENCY ECONOMICS A NEW YORK ECONOMIC CONSULTING FIRM IS EQUALLY SKEPTICAL IN A REPORT HE TOLD CLIENTS THE FORCES DEPRESSING THE DOLLAR AGAINST THE YEN PARTICULARLY THE BURGEONING JAPANESE TRADE SURPLUS WILL NOT ABATE IN THE NEAR TERM HE ALSO DERIDES THE PERCEPTION THAT GERMAN ECONOMIC WEAKNESS PLUS US GROWTH TRANSLATES INTO A MIGHTIER DOLLAR AS THE FAMOUS TOUCHYFEELIE THEORY OF DOLLAR STRENGTH HE SAYS HE HASN'T FOUND ANY CORRELATION BETWEEN BUSINESS CYCLES AND THE STRENGTH OF A CURRENCY NOTING THAT GERMAN SHORTTERM INTEREST RATES ARE CURRENTLY MORE THAN FOUR PERCENTAGE POINTS HIGHER THAN THEIR US EQUIVALENTS MR WEINBERG ALSO ARGUES THAT GERMANY ISN'T ABOUT TO LOWER INTEREST RATES ENOUGH TO MOVE LARGE SUMS OF MONEY OUT OF MARKS AND INTO DOLLARS INDEED ODDS ARE GOOD THAT FALLING INTEREST RATES IN GERMANY WILL SPARK A BUND GERMAN GOVERNMENT BOND RALLY THAT COULD DRAW A LOT OF CAPITAL INTO DEUTSCHE MARK MARKETS HE SAYS 9306220076 930622 ENDURING SNICKERING MORE MEN NOW CUT THEIR OWN HAIR SOME FLAUNT THEIR FRUGALITY USING ODD CONTRIVANCES MAKING FOR MIXED RESULTS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL PRESIDENT CLINTON SPENT 200 ON HIS FAMOUS HAIRCUT FORMER FINANCIER IVAN BOESKY OUT OF PRISON AND IN DIVORCE COURT RECENTLY TOLD A JUDGE HE NEEDED A 300AMONTH HAIR ALLOWANCE FROM HIS EXWIFE FOR JOURNALIST CHARLES PETERS HAIRCUTS COST NOTHING BUT A CERTAIN AMOUNT OF RIDICULE WHY SHOULD THE AVERAGE JOE BLOW EVEN 10 ON A HAIRCUT EVERY FEW WEEKS WHEN HE CAN FLAUNT FRUGALITY AND DO IT HIMSELF MORE OR LESS FOR FREE MR PETERS WONDERS CUT YOUR OWN HAIR SAYS MR PETERS EDITOR OF THE WASHINGTON MONTHLY YOU CAN SAVE A BUNDLE THE PRINCIPAL DANGER IS THAT YOU WILL END UP LOOKING LIKE GUY WALKER DID ONCE WHEN HE WASN'T BEING CAREFUL MR WALKER WHO WORKS AT THE GUGGENHEIM MUSEUM IN NEW YORK HAS BEEN CUTTING HIS OWN HAIR FOR 10 YEARS WITH GENERALLY GOOD RESULTS HE THINKS EXCEPT FOR THAT TIME WHEN HE WAS IN A HURRY TO GO TO A FUNERAL GRABBING A PAIR OF FABRIC SHEARS THE ONLY SCISSORS CLOSE AT HAND HE LOOKED IN THE BATHROOM MIRROR STARTED SLOWLY THEN GOT CARRIED AWAY BEFORE I KNEW IT I WAS IN THE LAND OF NO RETURN SAYS MR WALKER EXPOSING WHOLE PATCHES OF BARE SCALP HE WORE A HAT UNTIL HIS HAIR GREW BACK HAIRCARE PROFESSIONALS AREN'T SURPRISED BY HIS FREAK EXPERIENCE EVEN HAIR STYLISTS CAN'T CUT THEIR OWN HAIR OBSERVES BRIAN CLARK WHO GIVES 40 HAIRCUTS AT A FIFTH AVENUE SALON IN MANHATTAN ANYONE WHO TRIES WILL MAKE A COMPLETE HASH OF IT AND LOOK LIKE AN IDIOT BUT MR PETERS AND OTHER LONGTIME DOITYOURSELFERS POOHPOOH THAT ALL IT TAKES IS PATIENCE ALONG WITH THE COURAGE TO LIVE WITH THE CONSEQUENCES YOU MAY HEAR GIGGLES FROM PEOPLE WALKING BEHIND YOU MR PETERS SAYS NEW YORK TIMES COLUMNIST RUSSELL BAKER HAS BEEN CUTTING HIS OWN LOCKS SINCE THE 1960S HE BEGINS BY SPREADING OUT NEWSPAPERS ON THE BATHROOM FLOOR THEN I TAKE OFF ALL MY CLOTHES HE SAYS FACING THE MEDICINECHEST MIRROR HE WORKS THE KINKS OUT OF HIS HAIR WITH A RAZORCOMB THEN HE TAKES BARBER SCISSORS COMBS HIS HAIR DOWN OVER HIS FOREHEAD AND CUTS A STRAIGHT LINE ACROSS TO THE SHOWERS BUT HERE IS THE TRICKY PART HE TURNS HIS NAKED BACK TO THE MIRROR AND HOLDING A HANDMIRROR IN HIS LEFT HAND SNIPS ACROSS THE BACK OF HIS NECK WITH HIS RIGHT THE HARD THING IS GETTING IT EVEN BENEATH YOUR LEFT EAR HE SAYS ACTUALLY HE SAYS IT'S IMPOSSIBLE THE LAST STEP IS TO JUMP INTO THE SHOWER I DON'T WANT TO LOOK LIKE CARY GRANT OR CLARK GABLE SAYS MR BAKER IF YOU'RE A WRITER YOU'RE SUPPOSED TO LOOK A LITTLE RATTY JIM FAGIN A TV REPORTER IN OMAHA NEB KEEPS HIS CLOTHES ON WHEN HE CUTS HIS HAIR HE USES SCISSORS AND A RAZORCOMB TOO AND SAYS THAT MISTAKES CAN BE CORRECTED HE USED TO COVER ANY DIVOTS BY COMBING HAIR OVER THEM AND HOLDING THE ARRANGEMENT IN PLACE WITH A LITTLE DAB OF BRYLCREEM THAT DID IT FOR HIM I WOULD LOOK LIKE JERRY LEWIS HE SAYS NOW HE JUST EVENS IT ALL OUT BUT ONCE HE GOUGED HIS HAIR IN THE FRONT JUST BEFORE AIR TIME AND RESORTED TO STILL ANOTHER EXPEDIENT I HAD TO HOLD MY CHIN UP ON CAMERA HE SAYS A NUMBER OF MEN ASK THEIR WIVES OR A DEAR FRIEND TO HELP TRIM AROUND THE EARS SOME MATES ARE RELUCTANT TO GET INVOLVED BUT THEY ALWAYS SEEM FREE WITH THEIR OPINIONS OF THE RESULTS DANIEL SCHMOTZER WAS WALKING IN DOWNTOWN CLEVELAND ONE AFTERNOON WHEN HIS GIRLFRIEND NOTICED SOMETHING AMISS WITH THE BACK OF HIS HEAD SHE SAID I HAD A TAIL HE RECALLS SURE ENOUGH HE REACHED BACK AND FOUND TO HIS HORROR THAT INSTEAD OF THE SMOOTH TAPERED LOOK HE HAD SOUGHT HE HAD TWO INCHES OF HAIR HANGING DOWN OVER HIS COLLAR THE WORST THING IS WHEN SOMEONE ELSE TELLS YOU SAYS MR SCHMOTZER A GARDENER HE RESOLVED TO BE MORE CAREFUL SOME PEOPLE DO FIND IT TOO DAUNTING OR NOT WORTH THE EFFORT MR WALKER WHO HAD THE HAIRRAISING ENCOUNTER WITH THE FABRIC SHEARS ADMITS THAT OUT OF LAZINESS HE USES BARBERS MORE AND MORE THESE DAYS BUT HE HASN'T GIVEN UP ENTIRELY I GET A PERVERSE THRILL OUT OF DOITYOURSELF HAIRCUTS THERE IS ALWAYS THE POTENTIAL FOR DISASTER BUT SOME MEN WHO CAN WELL AFFORD A PROFESSIONAL CUT STILL PREFER TO CUT THEIR OWN HAIR AND DISAGREE WITH THE SELFINTERESTED PROS WHO STAND TO LOSE BUSINESS IF THIS TREND GETS OUT OF HAND RICHARD SAUL WURMAN IS A GRAPHIC DESIGNER AND AUTHOR OF THE 1989 BOOK INFORMATION ANXIETY HE RECENTLY BOUGHT A MILLIONDOLLAR HOUSE ON THE RHODE ISLAND COAST HIS WIFE GAVE HIM A JAGUAR FOR HIS LAST BIRTHDAY BUT HE STILL THINKS HE CAN DO A BETTER JOB THAN A STYLIST APPLIANCE MAKERS SEE A GROWING MARKET HERE MANY PEOPLE USE FOR HAIRCUTS THE BATTERYPOWERED GROOMSMAN BEARD AND MUSTACHE TRIMMER SOLD BY WAHL CLIPPER CORP REMINGTON SUNBEAM/OSTER CO NORELCO PANASONIC AND BRAUN ALL MAKE ELECTRICAL DEVICES THAT CAN DO THE JOB ESPECIALLY IF WHAT YOU WANT IS A RELATIVELY UNCOMPLICATED BUZZ CUT PERHAPS THE MOST ELABORATE GIZMO IS THE VACASSISTED HAIRCUTTER KNOWN TO VIEWERS OF LATENIGHT TV COMMERCIALS AS THE FLOWBEE WITH THE FLOWBEE A HOSE CONNECTED TO A VACUUM CLEANER SUCKS HAIR INTO A TUBE A ROTATING BLADE SLICES THE HAIR WHATEVER REACHES THE BLADE FALLS OFF SAYS MAXEY GROSSENBACHER PRESIDENT OF FLOWBEE INTERNATIONAL IN SAN DIEGO SPACER ATTACHMENTS DETERMINE HOW CLOSE TO THE SCALP THE BLADES CUT THE ONE DRAWBACK IS THAT YOU HAVE TO OWN A VACUUM CLEANER AND IT TAKES SEVERAL HAIRCUTS TO AMORTIZE YOUR 7995 INVESTMENT IN THE FLOWBEE ITSELF JUST 4000 FLOWBEES WERE SOLD IN 1991 BUT THANKS TO THE PUSH INTO DISCOUNT DEPARTMENT STORES MR GROSSENBACHER SAYS HE SOLD 175000 FLOWBEES LAST YEAR AND EXPECTS TO MOVE 250000 THIS YEAR NOT EVERYONE IS COMPLETELY ADMIRING OF THE FLOWBEE HOWEVER SUPERCUTS A NATIONAL HAIRCUTTING CHAIN IN SAN RAPHAEL CALIF TESTED THE FLOWBEE A FEW YEARS BACK THERE'S REALLY ONLY ONE KIND OF CUT YOU CAN GET FROM IT I CAN SEE SOME DRAWBACKS IF YOU'RE LOOKING FOR MORE STYLE SAYS ROSEANNE PEREA THE COMPANY'S DEVELOPMENT DIRECTOR THERE IS ANOTHER KIND OF STYLE YOU CAN GET THAT IS EVEN MORE CUTTINGEDGE AND THAT CORRECTS ALL DAMAGE DONE BY SELFCUTTING YOU CAN SHAVE IT ALL OFF ALAS SHAVED HEADS ARE TRICKY TOO IT'S HARD TO STRETCH THE SKIN SAYS LARRY CHRISTMAN OF LARRY CHRISTMAN'S HAIR FITNESS CENTER IN WHITEHALL PA WHO OCCASIONALLY IS CALLED ON TO REPAIR THE HAIRCUTS PEOPLE HAVE GIVEN THEMSELVES IN THE PAST SIXTH MONTHS HE HAS HAD INCREASING DEMAND FOR SHAVED HEADS THE MICHAEL JORDAN LOOK MR JORDAN OF THE WORLD CHAMPION CHICAGO BULLS BASKETBALL TEAM SHAVES HIS OWN HEAD VERY AERODYNAMIC THE STYLE IS POPULAR WITH SWIMMERS THERE'S NO NEED TO GO OUT IN PUBLIC AND BE MOBBED BY YOUR FANS THERE'S NO NEED FOR A FRIEND A STYLIST OR A BOWL OVER THE HEAD THERE'S NO NEED FOR A FLOWBEE OR A VACUUM CLEANER OR FANCY GADGETS OF ANY SORT ALL YOU NEED IS A RAZOR A STEADY HAND AND A SUPPLY OF BANDAIDS 9306220075 930622 MARKETING & MEDIA ADVERTISING TAMBRANDS TO RAISE AD SPENDING BY 50 WITH A GLOBAL CAMPAIGN BY LAURA BIRD TAMBRANDS INC BESIEGED BY DECLINING MARKET SHARE A RECENT STOCKPRICE SLIDE AND THE SUDDEN OUSTER OF ITS CHIEF EXECUTIVE IS SETTING A 50 INCREASE IN AD SPENDING TO LAUNCH A MAJOR GLOBAL CAMPAIGN BUT IT REMAINS TO BE SEEN WHETHER THE EFFORT WHICH COULD TOTAL AS MUCH AS 20 MILLION IN NEW AD SPENDING FOR TAMPAX TAMPONS CAN PULL TAMBRANDS OUT OF A TAILSPIN AND REVERSE STEEP DECLINES IN ITS FLAGSHIP BRAND ONCE THE COMFORTABLE LEADER IN ITS MARKET TAMBRANDS HAS LOST MARKET SHARE TO PLAYTEX AND JOHNSON & JOHNSON BY FOLLOWING THE DUBIOUS STRATEGY OF RAISING PRICES WHILE CUTTING AD SPENDING WALL STREET HAMMERED THE COMPANY'S SHARE PRICE EARLIER THIS SPRING AFTER LEARNING TAMBRANDS BRASS HAD SLASHED MARKETING SPENDING 25 EARLIER THIS MONTH THE BOARD OUSTED CHAIRMAN AND CHIEF EXECUTIVE MARTIN EMMETT AFTER THE COMPANY SURPRISED WALL STREET BY FALLING SHORT OF EARNINGS PROJECTIONS YESTERDAY THE COMPANY'S BELEAGUERED STOCK JUMPED 6125 OR 153 TO 4625 A SHARE ON A REPORT IN THE WALL STREET JOURNAL THAT THE TAMBRANDS BOARD IS QUIETLY EXPLORING WHETHER TO SELL THE COMPANY THE NEW CAMPAIGN'S TIMING IS UNUSUAL COMING AS THE COMPANY SEARCHES FOR A NEW CHIEF EXECUTIVE AND ESSENTIALLY IS WITHOUT A CLEAR LONGTERM STRATEGY ALTHOUGH A TAMBRANDS OUTSIDE DIRECTOR HOWARD WENTZ HAS SUCCEEDED MR EMMETT AS CHAIRMAN WALL STREET LOOKS TO A NEW CHIEF EXECUTIVE TO SET THE COMPANY'S COURSE BUT NO ONE IS YET IN SIGHT THE NEW ROUND OF COMMERCIALS FROM AD AGENCY BBDO OF NEW YORK SHOW A MONTAGE OF STYLISH WOMEN WHO SCOFF AT RIVALS' SANITARY PADS TAMBRANDS DOESN'T SELL PADS THE ADS TAKE AIM AT THINNER ONES ARE YOU KIDDING ONE WOMAN WANTS TO KNOW IN AN APPARENT SLAP AT THE PITCH FROM JOHNSON & JOHNSON'S STAYFREE SMALLER ONES NOT SMALL ENOUGH AND PADS WITH WINGS STILL WON'T FLY ANOTHER LADY SAYS IN DISMISSING THE SELLING POINT OF PROCTER & GAMBLE'S ALWAYS BRAND THE COMMERCIAL ENDS ON THE NOTE TRUST IS TAMPAX TAMPONS BBDO A UNIT OF OMNICOM GROUP SAID THE NEW EFFORT IS INTENDED FOR USE IN NORTH AMERICA EASTERN EUROPE WESTERN EUROPE LATIN AMERICA AND THE ASIA PACIFIC REGION BILLINGS WILL BE 15 MILLION TO 20 MILLION ON TOP OF THE SMALL SUM THE COMPANY HAS SPENT SO FAR THIS YEAR AND REPRESENTING AN INCREASE OF 50 OR MORE OVER THE TAMBRANDS AD BUDGETS OF RECENT YEARS IF THEY DON'T DO SOMETHING THEIR BUSINESS WILL CONTINUE TO DETERIORATE SAYS BONITA AUSTIN AN ANALYST WITH LEHMAN BROTHERS WHILE THE NEW BLITZ MAY ACTUALLY HELP IN THE SHORT TERM SHE ADDS I WISH THEY HAD BEEN SPENDING LIKE THIS ALL ALONG THEIR BUSINESS WOULD BE IN BETTER SHAPE IF THEY HAD MS AUSTIN SAYS THE COMPANY'S SHARE OF THE 670 MILLION TAMPON MARKET SANK 8 LAST YEAR FALLING TO 498 IN THE FIRST QUARTER OF THIS YEAR FROM 539 IN THE YEARAGO PERIOD SALES OF ALL BRANDS OF TAMPONS MEANWHILE HAVE BEEN SLIGHTLY UP WITH COMPETITORS PLAYTEX PLAYTEX FP GROUP AND OB FROM JOHNSON & JOHNSON WINNING MANY OF TAMBRANDS'S CUSTOMERS THERE'S A LOT OF BRAND SWITCHING GOING ON NOTES ANDREW SHORE AN INDUSTRY ANALYST WITH PAINEWEBBER SALES OF SANITARY PADS HAVE BEEN STRONGER RECENTLY ALSO HURTING TAMBRANDS TECHNOLOGICAL INNOVATIONS IN PADS THE VERY ONES IN FACT THAT TAMBRANDS IS MOCKING IN ITS COMMERCIALS HAVE ATTRACTED NEW CUSTOMERS TO THE CATEGORY FULLY 50 OF WOMEN IN THE US USE BOTH PADS AND TAMPONS MR SHORE ESTIMATES BY COMPARING TAMPAX WITH PADS THE MESSAGE OF THE SPOTS MAY SERVE TWO STRATEGIC PURPOSES IN THE US THE ADS TRY TO INCREASE USAGE OCCASIONS WITH WOMEN MOST OF WHOM USE A VARIETY OF FEMININE HYGIENE PRODUCTS THE MESSAGE MAY APPLY WELL IN OVERSEAS MARKETS WHERE TAMPON USE ISN'T AS LARGE AS IT IS IN THE US TAMPAX USED TO BE A LOWER PRICED BRAND WHILE PLAYTEX WAS THE PREMIUMPRICED ALTERNATIVE BUT MR EMMETT THE FORMER CHAIRMAN SET OUT TO COMPETE WITH PLAYTEX BY RAISING TAMPAX PRICES AND PUTTING FEWER TAMPONS IN EACH BOX THAT PRICED THE PRODUCT OUT OF THE REACH OF SOME CUSTOMERS SIMULTANEOUSLY THE COMPANY WAS STINGY WITH MARKETING MONEY TO KEEP UP ITS BRAND IMAGE AT JUST THE TIME WHEN CONSUMERS IN A VARIETY OF MARKETS WERE QUESTIONING THE VALUE OF NATIONAL BRANDS AND TURNING TO CHEAPER PRIVATE LABELS THE SUBSEQUENT SHARE LOSS NOW REQUIRES US TO BE MUCH MORE AGGRESSIVE SAYS SIMON MARLOW THE BBDO EXECUTIVE VICE PRESIDENT WHO OVERSEES THE TAMBRANDS BUSINESS THE ADS TRY TO SHOW WOMEN NEW TIMES AND WAYS TO USE TAMPONS INDEED ONE SPOT INFORMS THEM A GROUP OF LEADING GYNECOLOGISTS AGREE THAT TAMPONS MAY BE WORN OVERNIGHT FOR UP TO EIGHT HOURS CURRENTLY TWOTHIRDS OF TAMPON USERS DON'T USE THEM AT NIGHT WHEN THEY ARE SLEEPING ALTHOUGH MR MARLOW SAYS THAT ISN'T BECAUSE THEY ARE WORRIED ABOUT TOXIC SHOCK SYNDROME WHICH HURT TAMPON SALES YEARS AGO IT'S JUST HABIT HE SAYS SEVERAL FORTHCOMING ADS WILL AIM AT GETTING WOMEN TO CHANGE THEIR HABITS IF EACH WOMAN USES JUST ONE OR TWO MORE TAMPONS EACH MONTH MR MARLOW SAYS THAT WOULD BE A WAY TO SUSTAINABLE GROWTH MCDONALD'S AND MICHAEL JORDAN HAVE TEAMED UP FOR A TELEVISION AD THAT CAPITALIZES ON THE CHICAGO BULLS' THIRD CONSECUTIVE NATIONAL CHAMPIONSHIP AND HIGHLIGHTS THE SUPERSTAR'S APPETITE FOR VICTORY THE PRIMETIME SPOT BEGAN YESTERDAY ON CABLE AND NETWORK TELEVISION AND IS SLATED TO CONTINUE FOR THE NEXT TWO WEEKS THE 30SECOND COMMERCIAL WHICH WAS PRODUCED BY NBA ENTERTAINMENT IN CONJUNCTION WITH LEO BURNETT OF CHICAGO AND MCDONALD'S SHOWS MR JORDAN MAKING CLUTCH PLAYS FROM THE 1991 1992 AND 1993 NATIONAL BASKETBALL ASSOCIATION CHAMPIONSHIPS AND ENDS WITH AN INTERVIEW WITH HIM COURTSIDE IN PHOENIX AFTER SUNDAY'S FINAL CHAMPIONSHIP GAME RESPONDING TO AN ANNOUNCER'S QUESTION WHETHER HE IS HUNGRY FOR A FOURTH NBA CHAMPIONSHIP MR JORDAN SAYS WITH A GRIN I'M HUNGRY FOR A BIG MAC WHO'S NEWS AMMIRATI & PURIS NEW YORK NAMED ROBERT SOLOMON TO THE NEW POST OF EXECUTIVE VICE PRESIDENT IN CHARGE OF THE AGENCY'S DIRECT MARKETING GROUP HE PREVIOUSLY RAN THE WEST COAST DIRECTMARKETING OPERATION OF FOOTE CONE & BELDING CHICAGO 9306220074 930622 BUSINESS BRIEF MARCAM CORP PURCHASE OF VARNET IS CLOSED FOR 885000 COMMON SHARES MARCAM CORP NEWTON MASS SAID IT COMPLETED ITS ACQUISITION OF VARNET GROUP IN A POOLINGOFINTERESTS TRANSACTION MARCAM SAID THE FINAL TERMS RESULTED IN ITS ISSUING 885000 COMMON SHARES IN EXCHANGE FOR ALL VARNET SHARES MARCAM SAID THE TRANSACTION ANNOUNCED LAST WEEK WILL NEGATIVELY AFFECT MARCAM'S JUNE QUARTER BY FOUR TO FIVE CENTS AS A RESULT OF CLOSING COSTS AND PERHAPS ANOTHER FIVE CENTS DUE TO THE DILUTIVE IMPACT OF VARNET'S OPERATIONS AND THE ADDITIONAL SHARE COUNT IN THE QUARTER FOR THE YEAREARLIER FISCAL THIRD QUARTER MARCAM REPORTED NET INCOME OF 23 MILLION OR 28 CENTS A SHARE ON REVENUE OF 198 MILLION MARCAM IS A MAKER OF APPLICATIONS SOFTWARE AND SERVICES VARNET BASED IN BRAINTREE MASS SUPPLIES OPEN SYSTEMS APPLICATION SOFTWARE 9306220073 930622 PRESIDENTS AND TAXES BY HERBERT STEIN IN JUNE 1962 PRESIDENT KENNEDY ANNOUNCED THAT HE WOULD PROPOSE A BROADBASED TAX REDUCTION TO TAKE EFFECT IN 1963 THIS ANNOUNCEMENT WAS GENERALLY WELCOMED AND AN ACTIVE DISCUSSION OF THE DESIRABLE SIZE AND COMPOSITION OF THE TAX CUT FOLLOWED IN JANUARY 1963 THE PRESIDENT SPELLED OUT HIS PROPOSAL THERE WOULD BE ABOUT 13 BILLION OF REVENUEREDUCING CUTS IN INDIVIDUAL AND CORPORATE INCOME TAXES AND ABOUT 3 BILLION OF REVENUERAISING REFORMS OR LOOPHOLE CLOSINGS REMEMBER THAT THE GROSS NATIONAL PRODUCT THEN WAS ABOUT ONETENTH WHAT IT IS NOW THE PLAN IMMEDIATELY RAN INTO STRONG OBJECTIONS IN CONGRESS ON TWO FRONTS THERE WERE OBJECTIONS TO THE REVENUERAISING REFORMS NATURALLY FROM THE PEOPLE WHO WOULD HAVE TO PAY THE ADDITIONAL REVENUE THERE WERE OBJECTIONS TO THE EXPENDITURE PROPOSALS IN PRESIDENT KENNEDY'S BUDGET THESE CAME PARTLY FROM PEOPLE WHO DID NOT LIKE THE SPECIFIC EXPENDITURES PROPOSED THEY ALSO CAME FROM PEOPLE WHO FEARED THAT ALLOWING EXPENDITURES TO RISE WOULD REDUCE THE POSSIBILITY OF FUTURE TAX REDUCTIONS IN THE EFFORT TO GET A TAX BILL ADOPTED THE ADMINISTRATION HAD TO CONTEND WITH TWO STRONG OPPONENTS BOTH OF THE PRESIDENT'S PARTY THEY WERE REP WILBUR MILLS CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE AND SEN HARRY BYRD CHAIRMAN OF THE SENATE FINANCE COMMITTEE THE BILL DID NOT GET OUT OF THE WAYS AND MEANS COMMITTEE UNTIL SEPTEMBER BY WHICH TIME IT WAS SHORN OF MOST OF ITS REVENUERAISING ASPECTS AFTER PRESIDENT KENNEDY'S ASSASSINATION PRESIDENT JOHNSON HAD THE TASK OF ACCOMMODATING THE ANTISPENDING SEN BYRD IN ONE OF THE FEW MEMORABLE SENTENCES IN THE HISTORY OF FISCAL POLICY PRESIDENT JOHNSON SAID TO HIS ECONOMIC ADVISER WALTER HELLER IF YOU DON'T GET THIS BUDGET DOWN AROUND 100 BILLION YOU WON'T PEE ONE DROP PRESIDENT JOHNSON CAME IN WITH A BUDGET THAT SATISFIED SEN BYRD AND THE BILL WAS SIGNED INTO LAW IN FEBRUARY 1964 20 MONTHS AFTER PRESIDENT KENNEDY HAD FIRST ANNOUNCED THE TAX CUT AND WITH SIGNIFICANT CONCESSIONS TO CONGRESS I TELL THIS STORY BECAUSE THERE SEEMS TO BE A FEELING AROUND THAT PRESIDENT CLINTON'S DEALINGS WITH CONGRESS ON THE TAX BILL ARE UNUSUAL AND CRITICAL THAT HE IS HEADING FOR THE BATTLE OF THE LITTLE BIG HORN AND IS MARKED DOWN FOR THE ROLE OF GEN CUSTER IN FACT SHARP CONTROVERSY BETWEEN THE PRESIDENT AND CONGRESS IS QUITE COMMON AS IS THE MAKING OF CONCESSIONS BY THE PRESIDENT AND PRESIDENTS HAVE SURVIVED THESE ENGAGEMENTS QUITE WELL IN 1938 OVER PRESIDENT ROOSEVELT'S STRONG OBJECTIONS CONGRESS PASSED A REVENUE ACT CUTTING THE CAPITALGAINS TAX AND PHASING OUT THE UNDISTRIBUTED PROFITS TAX AS A SIGN OF DISGUST FDR ALLOWED IT TO BECOME LAW WITHOUT HIS SIGNATURE EVEN DURING WORLD WAR II PRESIDENT ROOSEVELT HAD GREAT DIFFICULTY GETTING HIS TAX PROPOSALS THROUGH CONGRESS IN 1947 AND 1948 PRESIDENT TRUMAN AND CONGRESS ENGAGED IN A CONTINUING STRUGGLE OVER TAXES CONGRESS PASSED TWO BILLS THAT THE PRESIDENT SUCCESSFULLY VETOED BEFORE IT MUSTERED ENOUGH VOTES TO PASS ONE OVER HIS VETO IN THIS CASE OF COURSE THE PRESIDENT AND CONGRESS WERE OF DIFFERENT PARTIES IN 1953 DWIGHT EISENHOWER CAME INTO OFFICE AS ONE OF THE MOST POPULAR PRESIDENTS OF RECENT TIME THE REPUBLICANS HAD COME INTO CONTROL OF BOTH HOUSES OF CONGRESS AN ACCOMPLISHMENT THEY HAVE YET TO REPEAT ON PRESIDENT EISENHOWER'S COATTAILS BUT EVEN HE HAD TO USE ALL OF HIS POLITICAL MUSCLE TO SILENCE THE CHAIRMAN OF THE WAYS AND MEANS COMMITTEE AND GET A TAX BILL HE WANTED OUT OF COMMITTEE IN 1966 MANY PEOPLE INCLUDING SOME OF HIS ADVISERS THOUGHT THAT PRESIDENT JOHNSON SHOULD PROPOSE A TAX INCREASE TO HELP PAY FOR THE VIETNAM WAR BUT HE DEMURRED PARTLY BECAUSE HE DID NOT WANT A FIGHT WITH CONGRESS IN 1967 HE CAME AROUND TO PROPOSING A TEMPORARY TAX SURCHARGE BUT HE DID NOT PUSH IT IN 1968 THE FIGHT BEGAN AND THE BILL DID NOT PASS UNTIL THE FALL AND NOT BEFORE PRESIDENT JOHNSON HAD AGREED TO A CAP ON SPENDING I COULD TELL SIMILAR STORIES OF THE NIXON AND CARTER ADMINISTRATIONS THE PASSAGE OF THE REVENUE ACT OF 1986 IN THE REAGAN ERA WAS ALSO A GREAT STRUGGLE BY LONG AND HONORABLE TRADITION CONGRESS GUARDS ITS INITIATIVE AND POWER IN THE FIELD OF TAXATION MORE THAN IN MOST OTHER LEGISLATIVE AREAS THE CHAIRMEN OF THE FINANCE COMMITTEE AND OF THE WAYS AND MEANS COMMITTEE ARE ALWAYS AMONG THE LEADING MEMBERS OF THEIR HOUSES AND THEIR IMPORTANCE HAS INCREASED SINCE A LARGE PART OF THE EXPENDITURE SIDE OF THE BUDGET THE ENTITLEMENTS NOW FALLS WITHIN THEIR JURISDICTION THEY ARE NOT GOING TO ROLL OVER FOR THE PRESIDENT A MAJOR TAX BILL INVOLVES LOTS OF MONEY FOR LOTS OF PEOPLE AND THE MONEY IS ALL OUT THERE TO BE SEEN NATURALLY THERE IS GOING TO BE A HARD AND LONG FIGHT OVER IT AMONG OTHER THINGS EVERY CLAIMANT IS GOING TO WRAP HIMSELF IN THE FLAG OF THE NATIONAL INTEREST AND IN RECENT DAYS EVERY CLAIMANT HAS HIS RESIDENT ECONOMETRICIAN TO SHOW THAT THE TAX HE HATES WILL COST JOBS AND NOT RAISE ANY REVENUE I DO NOT SAY ALL THIS TO TAKE SIDES ON ANY OF THE SUBSTANTIVE ISSUES IN THE CURRENT TAX DEBATE I ONLY WANT TO REMIND PEOPLE THAT THEY SHOULD NOT BE SURPRISED OR DISCONCERTED BY SEEING A FIGHT OVER TAXES IN WHICH NO ONE GETS EXACTLY WHAT HE MOST WANTED A FORMER CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS MR STEIN IS AN AMERICAN ENTERPRISE INSTITUTE FELLOW AND A MEMBER OF THE JOURNAL'S BOARD OF CONTRIBUTORS 9306220072 930622 ASYLUM LAWS DON'T APPLY TO HAITIANS STOPPED AT SEA SUPREME COURT RULES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT UPHELD THE CLINTON ADMINISTRATION'S POLICY OF INTERCEPTING AND FORCIBLY RETURNING HAITIAN REFUGEES WITHOUT HEARING THEIR PLEAS TO ENTER THE US THE HIGH COURT RULED 81 THAT STOPPING THE REFUGEES IN INTERNATIONAL WATERS AND SENDING THEM HOME DOESN'T VIOLATE FEDERAL IMMIGRATION LAW OR INTERNATIONAL TREATIES THE OBLIGATION TO CONSIDER REFUGEES' REQUESTS FOR POLITICAL ASYLUM DOESN'T APPLY OUTSIDE OF THE US AND ITS FOREIGN EMBASSIES THE HIGH COURT SAID WRITING FOR THE MAJORITY JUSTICE JOHN PAUL STEVENS STRESSED THAT THE COURT'S DUTY WAS TO ENFORCE LAWS AND LEGAL AGREEMENTS NOT HUMANE ASPIRATIONS HE CONCEDED THAT THE DRAFTERS OF AN INTERNATIONAL TREATY JOINED BY THE US IN 1968 MAY NOT HAVE CONTEMPLATED THAT ANY NATION WOULD GATHER FLEEING REFUGEES AND RETURN THEM TO THE ONE COUNTRY THEY HAD DESPERATELY SOUGHT TO ESCAPE SUCH ACTIONS HE CONTINUED MAY EVEN VIOLATE THE SPIRIT OF THE TREATY BUT THE TEXT OF THE TREATY CANNOT REASONABLY BE READ TO SAY ANYTHING AT ALL ABOUT A NATION'S ACTIONS TOWARD ALIENS OUTSIDE ITS OWN TERRITORY ADVOCATES FOR THE HAITIANS HAVE CONTENDED THAT MANY WERE TRYING TO ESCAPE POLITICAL PERSECUTION OR OTHER ABUSE BY THE MILITARY WHICH DEPOSED ELECTED PRESIDENT JEANBERTRAND ARISTIDE IN SEPTEMBER 1991 US OFFICIALS HAVE SAID THAT MOST OF THE REFUGEES HAVE FLED NOT PERSECUTION BUT TERRIBLE ECONOMIC CONDITIONS IN THE CARIBBEAN NATION THE HAITIAN REFUGEE POLICY FOLLOWED BY THE CLINTON ADMINISTRATION WAS FIRST ESTABLISHED LAST YEAR BY FORMER PRESIDENT BUSH DURING HIS CAMPAIGN MR CLINTON CALLED THE POLICY CRUEL AND ILLEGAL AFTER HIS ELECTION THOUGH HE SENT ADMINISTRATION LAWYERS TO THE SUPREME COURT TO ARGUE THAT SWITCHING THE POLICY WOULD CAUSE A DISASTROUS FLOOD OF REFUGEES MANY OF WHOM WOULD DIE AT SEA ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL APPLAUDED YESTERDAY'S RULING FOR UPHOLDING PRESIDENTIAL AUTHORITY HE SAID THAT US OFFICIALS WILL ENSURE THAT INTERDICTED BOAT MIGRANTS WHO FEAR POLITICAL PERSECUTION WILL BE AFFORDED A MEANINGFUL OPPORTUNITY FOR REFUGEE PROCESSING IN HAITI US OFFICIALS ARE ACCEPTING ASYLUM REQUESTS IN THE ISLAND'S CAPITAL PORTAUPRINCE HE ADDED 9306220071 930622 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN CHINA ORDERED MORE CUTS IN FEES AND TAXES IMPOSED ON THE PEASANTRY AS REPORTS OF INCREASED RURAL UNREST EMERGED OTHER LEVIES WERE ABOLISHED LAST MONTH ALLEVIATING EXORBITANT TAX BURDENS ON FARMERS IS A POLITICAL AS WELL AS ECONOMIC ISSUE THE CABINET SAID TELLING LOCAL OFFICIALS TO DROP 37 LEVIES RANGING FROM SOCIALSTABILITY TO TOILETIMPROVEMENT FEES RECENT SHARP INCREASES IN RURAL TAXES AND FARM COSTS COMBINED WITH STAGNANT OR FALLING PRICES FOR CROPS HAVE INCREASED VOLATILITY IN CHINA'S NORMALLY QUIESCENT RURAL SECTOR OF 800 MILLION PEOPLE FRUSTRATED THAT A WAVE OF PROSPERITY HAS BEEN CONFINED TO CITIES AND COASTAL AREAS PEASANTS HAVE RIOTED OVER LAND CLAIMS AND HELD PROTESTS AGAINST AUTHORITIES THE GOVERNMENT WHICH BUYS MOST GRAIN CROPS TO SEND TO CITIES HAS BOOSTED PAYMENTS A BIT TO PEASANTS BUT THEIR EXPENSES HAVE RISEN MORE FARM INCOMES HAVE FALLEN FROM THEIR MID1980S PEAK RUSSIA ENDED PRICE CONTROLS ON THE COAL INDUSTRY EFFECTIVE JULY 1 WITH ENERGY NEEDS LOWER IN SUMMER THE EFFECT WILL BE LESS HARSH ON CONSUMERS AND THE ECONOMY PRICES ARE EXPECTED TO RISE BETWEEN 20 AND 30 LESS THAN THE 250 INCREASE SOUGHT BY THE FUEL AND ENERGY MINISTRY TO EASE THE INDUSTRY'S FINANCIAL WOES IN OTHER STEPS TO REDUCE STATE CONTROL OVER COAL RUSSIA DISCONTINUED REQUIRING EXPORTERS TO SELL THEIR HARDCURRENCY PROFITS TO THE STATE AND WILL EXEMPT PRODUCERS FROM PAYING EXPORT TAXES THOUGH IT WILL CUT THE HUGE STATE SUBSIDIES TO THE SECTOR HOUSING CONSTRUCTION IN EASTERN GERMANY WILL JUMP BETWEEN 20 AND 25 THIS YEAR FROM THE 28000 UNITS BUILT LAST YEAR THE INSTITUTE FOR ECONOMIC RESEARCH IN HALLE SAID YET THE EXPECTED TOTAL REPRESENTS ONLY A QUARTER OF THE 140000 NEW HOUSING UNITS A YEAR THAT THE GERMAN BUILDING INDUSTRY ASSOCIATION SAID THE REGION NEEDS STILL THE INSTITUTE'S FORECAST INDICATES A REBOUND FOR HOME BUILDING WHICH FOR THE PAST TWO YEARS LAGGED BEHIND COMMERCIAL AND GOVERNMENT PROJECTS A SECURITY GUARD IN BRITAIN WHO ACCUSED HIS MALE BOSS OF SEXUAL HARASSMENT WAS AWARDED CASH DAMAGES IN THE CLAIM BELIEVED TO BE THE FIRST INVOLVING MEN TO BE UPHELD IN THE COUNTRY THE GUARD TOLD A CARDIFF WALES INDUSTRIAL TRIBUNAL THAT HE HAD TO TRANSFER TO ANOTHER SITE AND WORK LONGER HOURS FOR LESS PAY TO ESCAPE THE ATTENTIONS OF HIS 50YEAROLD BOSS THE TRIBUNAL A PANEL THAT SETTLES WORK DISPUTES AWARDED 4450 IN GENERAL COMPENSATION AND 2225 FOR HURT FEELINGS THE SECURITY FIRM SAID IT PLANNED TO APPEAL INDONESIA'S CAPITAL EXPANDED A BAN ON FOREIGN LANGUAGES ON BILLBOARDS THAT TAKES EFFECT NEXT MONTH AIMED AT ENCOURAGING APPRECIATION OF THE NATIONAL LANGUAGE IN THE BOOMING PROPERTY INDUSTRY DEVELOPERS COMMONLY GIVE THEIR PROJECTS FOREIGN NAMES USUALLY IN ENGLISH SUCH AS THE CALIFORNIA TOWNHOUSE JAKARTA THREATENING VIOLATORS WITH THREE MONTHS IN JAIL ORDERED DEVELOPERS TO CHANGE FOREIGN NAMES TO INDONESIAN WORDS OR TO WRITE THEM IN SMALLER LETTERS UNDER THE NATIVE NAMES FOR MOST OF ITS 180 MILLION PEOPLE INDONESIAN IS A SECOND LANGUAGE AMONG 200 TONGUES SPOKEN IN THE ARCHIPELAGO A SURVEY OF WHITECOLLAR BUSINESSMEN FOUND THAT 92 IN THE US HELPED THEIR WIVES WITH HOUSEHOLD DUTIES COMPARED WITH 60 IN JAPAN WHERE 10 OF RESPONDENTS SAID THEY NEVER LIFTED A FINGER AT HOME BUT JAPANESE WORKERS WERE LESS LIKELY TO TAKE WORK HOME A THIRD OF THE US RESPONDENTS BUT ONLY A TENTH OF THE JAPANESE PARTICIPATED IN CHILDREARING THE POLL SPONSOR KOKUSAI DENSHIN DENWA CO A TELECOMMUNICATIONS COMPANY SAID THE FINDINGS LARGELY CONFIRMED STEREOTYPES OF JAPANESE AND US HOME LIFE AFTER A SIXMONTH PROBE OF THE KUWAIT INVESTMENT OFFICE A PARLIAMENTARY PANEL BLAMED THE GOVERNMENT FOR MULTIBILLIONDOLLAR LOSSES ON INVESTMENTS IN SPAIN THE REPORT ALSO CITED UNACCEPTABLE EXPENSES FOR MANAGERS OF GRUPO TORRAS THE HOLDING COMPANY FOR THE SPANISH INVESTMENTS IT SAID PREVIOUS KUWAITI GOVERNMENTS DIDN'T CHOOSE EFFICIENT MANAGERS AND IMPOSE CONTROLS AND ACCOUNTABILITY THE KIO MANAGES FOREIGN INVESTMENTS TO DIVERSIFY REVENUE SOURCES BEYOND OIL THE EMIRATE'S TOP ACCOUNTING AUTHORITY SIMILARLY HAS TOLD PARLIAMENT THAT A CONTRACT BETWEEN GRUPO TORRAS AND A CONSULTING COMPANY WAS OPEN TO EMBEZZLEMENT THE CONSULTING FIRM WAS OWNED BY THE SPANISH FINANCIER JAVIER DE LA ROSA A FORMER GRUPO TORRAS OFFICIAL EMBEZZLEMENT SCANDALS HAVE ROILED THE EMIRATE SINCE ITS FEBRUARY 1991 LIBERATION FROM IRAQI OCCUPATION THE REPORT ALSO SAID 510 MILLION WAS SENT FROM GRUPO TORRAS TO UNIDENTIFIED ACCOUNTS AND COMPANIES DURING THE OCCUPATION KIO INVESTMENTS HAVE FALLEN TO 30 BILLION FROM 100 BILLION IN THE 1980S PARTLY BECAUSE OF THE GULF WAR VIETNAM WHICH IS REVERTING TO A FREEMARKET ECONOMY WILL APPLY FOR OBSERVER STATUS IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN A STEP TOWARD MEMBERSHIP IN THE WORLD TRADE BODY THE SWISS VILLAGE OF WUERENLOS JUST NORTH OF ZURICH ORDERED ITS OFFICIALS TO ADDRESS WOMEN AS FRAU REGARDLESS OF THEIR MARITAL STATUS AND NOT AS FRAULEIN A DIMINUTIVE THAT SOME SWISS WOMEN'S GROUPS SAY IMPLIES A WOMAN ISN'T TO BE TAKEN SERIOUSLY