NEW YORK THE OVERTHECOUNTER MARKET DRIFTED LOWER IN LIGHT TRADING THE NASDAQ COMPOSITE INDEX FELL 085 OR 012 TO 68874 DECLINING ISSUES OUTNUMBERED ADVANCERS 1486 TO 1190 ON TOTAL VOLUME OF 2084 MILLION SHARES DOWN FROM FRIDAY'S 2499 MILLION SHARES THE TECHNOLOGY STOCKS WERE UNDER SOME PRESSURE WHICH BROUGHT THE MARKET DOWN SAID LANCE ZIPPER HEAD OF OTC TRADING AT KIDDER PEABODY & CO BUT IT WAS KIND OF A QUIET DAY SO THE MOVEMENT IN STOCKS OVERALL WASN'T REALLY SIGNIFICANT APPLE COMPUTER DROPPED 1 3/8 TO 39 5/8 APPLE'S BOARD DISCLOSED FRIDAY THAT IT HAD NAMED MICHAEL SPINDLER CHIEF EXECUTIVE OFFICER SUCCEEDING JOHN SCULLEY MR SCULLEY WILL REMAIN CHAIRMAN BUT WILL DEVOTE MOST OF HIS TIME TO BUILDING ALLIANCES WITH OTHER COMPANIES AND WORKING OUT OF THE NEW YORK OFFICE CISCO SYSTEMS FELL 5/8 TO 50 7/8 AND ADOBE SYSTEMS SLUMPED 1 1/2 TO 64 1/8 CASINO STOCKS WERE MIXED AFTER PLUNGING FRIDAY WHEN THE LOUISIANA RIVERBOAT GAMING COMMISSION FAILED TO APPROVE APPLICATIONS BY SOME GAMBLING CONCERNS TO OPERATE RIVERBOAT CASINOS PRESIDENT RIVERBOAT CASINOS FINISHED UNCHANGED AT 31 1/4 AFTER PLUMMETING 12 5/8 FRIDAY AFTER BEING DENIED A LICENSE ARGOSY GAMING WHICH WAS ALSO DENIED APPROVAL SLID 1 1/4 TO 28 OTHER CASINO STOCKS THAT HAD FALLEN FRIDAY SHOWED MIXED RESULTS YESTERDAY CASINO MAGIC ROSE 1 3/4 TO 26 1/4 WHILE GRAND CASINOS SLIPPED 3/4 TO 33 1/4 A LICENSE WAS GRANTED TO PRIVATELY HELD ST CHARLES GAMING CO TO BUILD AND OPERATE A RIVERBOAT CASINO ON THE WEST BANK OF THE MISSISSIPPI RIVER SKYLINK AMERICA WHICH YESTERDAY JUMPED 1 1/2 TO 6 7/8 HAS AN AGREEMENT WITH THE SMALL GAMBLING COMPANY TO PARTICIPATE IN THE RIVERBOAT OPERATION SKYLINK WHICH OFFERS CABLE TELEVISION PROGRAMMING AND SERVICES SAID IT WOULD FOCUS ON GAMBLING AND INTENDS TO SELL ITS REMAINING CABLE OPERATIONS SNAPPLE BEVERAGE DROPPED 3 TO 36 SNAPPLE SAID IT REACHED A TENTATIVE AGREEMENT TO ACQUIRE MR NATURAL INC AND MR NATURAL OF WESTCHESTER INC THE DISTRIBUTORS OF SNAPPLE PRODUCTS IN NEW YORK CITY AND WESTCHESTER COUNTY NY THE TERMS OF THE AGREEMENT WEREN'T DISCLOSED MERCHANTS BANCSHARES TOPPLED 3 3/4 TO 11 LATE FRIDAY THE BURLINGON VT COMPANY SAID IT WON'T DECLARE A DIVIDEND ON ITS COMMON STOCK FOR THE SECOND QUARTER THE COMPANY MOST RECENTLY PAID A 20CENT QUARTERLY DIVIDEND APRIL 1 MERCHANTS BANKSHARES ALSO SAID IT PLANS TO TAKE A LOANLOSS PROVISION OF ABOUT 10 MILLION REDUCING CAPITAL BY ABOUT 65 MILLION MCCORMICK & CO JUMPED 1 TO 22 1/4 THE SPARKS MD COMPANY SAID IT WILL BUY BACK AS MANY AS TWO MILLION SHARES OUTSTANDING FROM TIME TO TIME IN THE OPEN MARKET MCCORMICK MANUFACTURES SEASONINGS AND FLAVORINGS AMERICAN PACIFIC DROPPED 1 1/2 TO 13 1/2 THE LAS VEGAS COMPANY SAID IT WAS NAMED IN A SHAREHOLDERS' LAWSUIT SEEKING CLASSACTION STATUS THE COMPANY SAID THE SUIT CLAIMS THAT IT INADEQUATELY DISCLOSED INFORMATION ABOUT ITS AGREEMENTS WITH THIOKOL CORP LAST WEEK AMERICAN PACIFIC ANNOUNCED THAT THIOKOL HAD ASKED AMERICAN PACIFIC'S WESTERN ELECTROCHEMICAL UNIT TO BE RELEASED FROM ITS OBLIGATION TO PURCHASE AMMONIUM PERCHOLATE THE COMPANY SAID WE BELIEVE OUR LEGAL AND CONTRACTUAL POSITIONS ARE SOLID AND WE EXPECT TO RESOLVE THIS ISSUE IN AN EXPEDIENT AND FAVORABLE MANNER TRISTAR FELL 1/2 TO 5 3/4 TRISTAR SAID IT REACHED AN AGREEMENT IN PRINCIPLE TO SETTLE SHAREHOLDER LITIGATION FOR 95 MILLION IN CASH THE COMPANY FORMERLY KNOWN AS ROSS COSMETICS DISTRIBUTION CENTERS SAID IT WAS NAMED AS A DEFENDANT IN A NUMBER OF SUITS IN THE WAKE OF ANNOUNCEMENTS LAST YEAR REGARDING THE PREVIOUSLY UNDISCLOSED CONTROLLING INTEREST HELD BY THE COMPANY'S PRIMARY SUPPLIER OF FRAGRANCE AND COSMETICS PRODUCTS RHODES TOPPLED 1 1/4 TO 10 1/2 DOWN 14 FROM ITS OFFERING PRICE OF 12 THE ATLANTA FURNITURE RETAILER WAS MENTIONED IN YESTERDAY'S OTC FOCUS COLUMN AS ANOTHER NEW STOCK IN AN ALREADY CROWDED SECTOR IN THE MARKET WINSTON FURNITURE WHICH WAS ALSO MENTIONED IN THE COLUMN EASED 1/8 TO 10 3/8 9306220069 930622 POLITICS & POLICY NAVY SETS COURSE TO SAVE INDUSTRIAL BASE AMID DOWNSIZING OF PENTAGON'S BUDGET BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE REELING DEFENSE INDUSTRY FINALLY WON A ROUND IN THE ABSENCE OF A CLEAR CLINTON ADMINISTRATION POLICY ON HOW TO PRESERVE THE DEFENSE INDUSTRY AS THE PENTAGON BUDGET SHRINKS THE NAVY DECIDED TO KEEP ITS INDUSTRIAL BASE ALIVE BY PUSHING AS MUCH WORK AS IT DEEMS POSSIBLE INTO THE PRIVATE SECTOR A TOP NAVY OFFICER SAID THE SERVICE IS REVERSING ITSELF AND SHRINKING ITS HUGE INHOUSE AIRCRAFTMAINTENANCE CAPABILITIES THE NAVY'S STRATEGY IN THE DOWNSIZING ENVIRONMENT IS TO MAINTAIN ONLY THE MINIMUM LEVEL OF ORGANIC CAPACITY SAID A POLICY STATEMENT DISTRIBUTED TO REPORTERS BY VICE ADM WILLIAM BOWES HEAD OF THE NAVAL AIR SYSTEMS COMMAND COMPETITION BETWEEN THE PUBLIC AND PRIVATE SECTORS WILL BE AVOIDED BY ALLOCATING WORK TO EACH THE STATEMENT SAID A SENIOR NAVY OFFICER SAID THAT THE OTHER PARTS OF THE SEA SERVICE HAVEN'T ISSUED WRITTEN PAPERS BUT PLAN SIMILAR CUTS IN CAPACITY THE NAVY MOVE REPRESENTS A SIGNIFICANT VICTORY FOR THE DEFENSE INDUSTRY WHICH IN THE POSTCOLD WAR ERA HAS FOUND ITSELF FIGHTING THE MILITARY SERVICES FOR SLICES OF THE SHRINKING DEFENSE PIE THE NAVY AIR FORCE AND ARMY IN RECENT YEARS HAVE ALL TAKEN INHOUSE WORK THAT ONCE WAS DONE BY CONTRACTORS MOREOVER THE NAVY MOVE MAY FORESHADOW A BROADER MOVE BY THE PENTAGON TO CURTAIL THE DEFENSE DEPOT SYSTEM THAT DEPARTMENTWIDE POLICY IS EXPECTED TO BE ANNOUNCED LATER THIS SUMMER AFTER DEFENSE SECRETARY LES ASPIN COMPLETES HIS BOTTOMUP REVIEW OF HOW TO RESHAPE THE MILITARY ESTABLISHMENT TO FIT THE POSTCOLD WAR WORLD DON FUQUA PRESIDENT OF THE AEROSPACE INDUSTRIES ASSOCIATION A TRADE GROUP THAT HAS ACCUSED THE MILITARY OF TRYING TO NATIONALIZE THE DEFENSE INDUSTRY WELCOMED THE NAVY'S POLICY REVERSAL CALLING IT VERY DEFINITELY A STEP IN THE RIGHT DIRECTION HE ADDED IT WOULD BE VERY NICE IF THE AIR FORCE FOLLOWED SUIT WHAT THE AIR FORCE HAS BEEN DOING IS IN EFFECT EXPANDING THE AIR FORCE'S APPROACH IS TO RESERVE A CORE OF WORK FOR ITSELF AND COMPETE WITH THE PRIVATE SECTOR AND THE OTHER SERVICES FOR THE REST GERALD YANKER DEPUTY DIRECTOR OF LOGISTICS FOR THE AIR FORCE MATERIEL COMMAND SAID THAT OF 15 CONTRACTS PUT UP FOR COMPETITION DURING THE PAST THREE YEARS THE AIR FORCE BID FOR 12 AND WON ONLY SEVEN THE ARMY WON TWO AND PRIVATE CONCERNS WON SIX WE'RE TELLING INDUSTRY HERE IT IS WE'LL PUT OUR WORKLOAD UP FOR BID AND SEE WHO WINS IT' MR YANKER SAID HE ARGUED THAT THIS IS MORE COSTEFFECTIVE THAN THE NAVY'S NEW POLICY EXPLAINING THE NAVY'S NEW STANCE ADM BOWES SAID THAT ALL WE'LL DO IN THE NAVY IS CORE WORK LEAVING THE REST TO INDUSTRY DEFINED AS THE MINIMUM AMOUNT OF WORK NECESSARY FOR THE NAVY TO MAINTAIN ITS REPAIR SKILLS AND ACQUISITION KNOWLEDGE THAT CORE LEVEL VARIES BY WEAPONS SYSTEM HE SAID BUT HE ADDED THAT FOR THE F/A18 STRIKE FIGHTER THE LEVEL IS ONLY 20 AIRCRAFT A YEAR ANY MAJOR MAINTENANCE OR MODIFICATION WORK BEYOND THAT HE SAID WOULD GO TO THE PRIVATE SECTOR CURRENTLY NAVAL AVIATION DEPOTS EMPLOY ABOUT 20000 CIVILIANS ADM BOWES SAID AFTER THE CURRENT ROUND OF BASE CLOSINGS WHICH WILL LEAVE THE NAVY WITH ONE AVIATION DEPOT ON EACH COAST PLUS ONE MARINE AVIATION FACILITY THAT NUMBER WILL DROP TO ABOUT 12000 HE ADDED 9306220066 930622 CANADA MINING FIRMS SHOW TEST RESULTS FROM DIAMOND AREAS CALGARY ALBERTA THE COMPANIES THAT TRIGGERED CANADA'S DIAMOND RUSH ANNOUNCED TEST RESULTS FROM FOUR MORE DIAMONDBEARING KIMBERLITE PIPES IN THE COUNTRY'S NORTHWEST TERRITORIES DIA MET MINERALS LTD AND BHP MINERALS CANADA LTD A CANADIAN UNIT OF AUSTRALIA'S BROKEN HILL PROPRIETARY CO SAID THAT ON THE BASIS OF THE TEST RESULTS THEY ARE PREPARING TO INVEST IN LARGESCALE TESTING AND A PILOT DIAMOND MINING PROJECT DIA MET'S PRESIDENT JAMES ECCOTT DECLINED TO SPECIFY HOW MUCH THAT WOULD COST BUT SAID IT WOULD AMOUNT TO MILLIONS OF DOLLARS MR ECCOTT SAID IT IS TOO EARLY TO SAY WHETHER A COMMERCIAL MINE WILL EVENTUALLY BE DEVELOPED HE SAID A DECISION PERTAINING TO A MINE WILL COME AFTER THE LARGESCALE TESTS AND A FEASIBILITY STUDY DIA MET 51 OWNED BY BHP IS BASED IN VANCOUVER BRITISH COLUMBIA DIA MET TRADES SEPARATELY ON THE TORONTO STOCK EXCHANGE THE BIGGEST STAKING RUSH IN CANADIAN HISTORY WAS SET OFF LAST YEAR WHEN DIA MET AND BHP MINERALS FOUND DIAMONDS AT THEIR POINT LAKE PROPERTY IN THE NORTHWEST TERRITORIES THE NEW RESULTS WERE FROM FOUR KIMBERLITE PIPES IN THE SAME AREA ROBERT BISHOP EDITOR OF THE GOLD MINING STOCK REPORT IN LAFAYETTE CALIF DESCRIBED THE TEST RESULTS OF ONE OF THE NEW PIPES AS EXCEPTIONAL I THINK THIS MEANS WE'RE GOING TO SEE DIAMOND MINES HE SAID 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 9306220065 930622 MONDAY'S MARKETS STOCKS BONDS ARE MOSTLY UP ON DOLLAR RALLY BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL THE DOLLAR'S RALLY AGAINST THE YEN PUSHED STOCK AND BOND PRICES MOSTLY HIGHER THE DOW JONES INDUSTRIAL AVERAGE JUMPED 1605 POINTS TO 351082 STANDARD & POOR'S 500STOCK INDEX ROSE 254 TO 44622 BUT THE NASDAQ COMPOSITE INDEX SLIPPED 085 TO 68874 THE INDUSTRIAL AVERAGE SURGED ABOUT 17 POINTS AT THE OPENING REBOUNDING FROM A SHARP SELLOFF IN LATE TRADING FRIDAY PRICES THEN MOVED LOWER FOR MOST OF THE DAY BEFORE RISING AGAIN AT THE CLOSE BESIDES THE REBOUND FROM FRIDAY'S LOSSES ANALYSTS SAID STOCK INVESTORS WERE ENCOURAGED BY THE DOLLAR'S RECOVERY THE STRENGTHENING CURRENCY COULD PERSUADE FOREIGN INVESTORS INCLUDING THE JAPANESE TO PUT MORE INVESTMENT MONEY TO WORK IN THE US STOCK AND BOND MARKETS THEY SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH ALSO NOTED THAT A STRENGTHENING DOLLAR EASES PRESSURES ON THE FEDERAL RESERVE BOARD TO SUPPORT THE CURRENCY BY RAISING SHORTTERM RATES STEPHEN S SMITH CHIEF INVESTMENT OFFICER AND FIXEDINCOME STRATEGIST AT BRANDYWINE ASSET MANAGEMENT SAID LONGTERM BOND PRICES MAY BE EMERGING FROM THE DOLDRUMS AFTER THREE MONTHS OF MOVING IN A NARROW TRADING RANGE HE EXPECTS CONTINUED SLOW ECONOMIC GROWTH AND LOW INFLATION COUPLED WITH SOME STRENGTH IN THE DOLLAR TO PUSH THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR BOND DOWN TO 640 TO 650 BY THE END OF THE NEXT QUARTER WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 123 TO 10330 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2194 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1119 ISSUES ROSE AND 837 FELL THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16883 MARKS AND 11060 YEN COMPARED WITH 16810 MARKS AND 10975 YEN FRIDAY 9306220063 930622 UNISYS GETS HUNGARIAN CONTRACT BLUE BELL PA UNISYS CORP SAID IT RECEIVED A 57 MILLION COMPUTER SERVICES CONTRACT FROM THE NATIONAL SAVINGS BANK OF HUNGARY COVERING SOFTWARE SERVICES WORKSTATIONS AND ENTERPRISE SERVERS UNISYS SAID THAT MORE THAN 45 OF THE TWOYEAR CONTRACT COVERS SOFTWARE AND SERVICES NATIONAL SAVINGS CONTROLS ABOUT A THIRD OF THE COUNTRY'S BANKING ASSETS AND HANDLES ABOUT 70 OF THE COUNTRY'S RETAIL SAVINGS AND 90 OF RETAIL LOANS 9306220062 930622 BUSINESS BRIEF DENTSPLY INTERNATIONAL INC SECONDQUARTER LOSS SEEN ON 131 MILLION IN CHARGES DENTSPLY INTERNATIONAL INC YORK PA SAID IT WILL REPORT A SECONDQUARTER LOSS AFTER TAKING 131 MILLION IN AFTERTAX CHARGES RELATED TO ITS RECENT MERGER WITH GENDEX CORP AMONG OTHER THINGS DENTSPLY WHICH MAKES DENTAL XRAY EQUIPMENT SAID IT WILL RECOGNIZE AFTERTAX COSTS OF ABOUT 62 MILLION ARISING FROM THE MERGER IN THE MERGER GENDEX ACQUIRED DENTSPLY AND CHANGED ITS NAME DENTSPLY IS ALSO TAKING 16 MILLION IN AFTERTAX CHARGES FOR CERTAIN NONRECURRING OPERATIONAL EXPENSES IN ADDITION THE COMPANY SAID IT WOULD WRITE OFF VIRTUALLY ALL ITS ACCOUNTS RECEIVABLE FROM HEALTHCO INTERNATIONAL WHICH RECENTLY FILED FOR BANKRUPTCYLAW PROTECTION THAT MOVE WILL GENERATE AN AFTERTAX CHARGE OF ABOUT 42 MILLION THE COMPANY SAID IT SAID IT ALSO WILL TAKE A 11 MILLION AFTERTAX CHARGE TO INCREASE RESERVES AND ACCRUALS FOR CERTAIN LITIGATION IN THE 1992 SECOND QUARTER GENDEX CORP REPORTED NET INCOME OF 21 MILLION OR 40 CENTS A SHARE ON REVENUE OF 289 MILLION 9306220061 930622 BUSINESS BRIEF INTERFACE SYSTEMS INC EARNINGS FOR THIRD QUARTER WILL BE LESS THAN EXPECTED INTERFACE SYSTEMS INC SAID ITS THIRDQUARTER REVENUE AND EARNINGS WILL BE SOMEWHAT LOWER THAN ITS PREVIOUS EXPECTATIONS MAINLY BECAUSE OF A TEMPORARY SLOWDOWN OF PRINTER SALES IN EUROPE THE ANN ARBOR MICH COMPANY SAID ITS THIRDQUARTER EARNINGS ESTIMATE IS CURRENTLY SEVEN CENTS A SHARE THE COMPANY HADN'T ARRIVED AT A SPECIFIC FIGURE FOR ITS PREVIOUSLY HIGHER EARNINGS EXPECTATION INTERFACE'S THIRD QUARTER ENDS JUNE 30 IN THE YEAREARLIER PERIOD INTERFACE EARNED 293960 OR SEVEN CENTS A SHARE REVENUE TOTALED 109 MILLION INTERFACE SAID ANALYSTS' ESTIMATES THAT IT WILL EARN 50 CENTS A SHARE FOR THE FISCAL YEAR SHOULD BE ATTAINABLE SEPARATELY THE COMPANY SAID ITS CLEO COMMUNICATIONS DIVISION WILL SUPPLY DIGITAL EQUIPMENT CORP'S RETAIL BUSINESS UNIT WITH UNIXTOIBM CONNECTIVITY SOLUTIONS THE CONTRACT IS VALUED AT 2 MILLION INTERFACE SYSTEMS MANUFACTURES IBMCOMPATIBLE HARDWARE AND SOFTWARE 9306220060 930622 CORPORATE FOCUS AMTECH A HOT TECHNOLOGY STOCK ENCOUNTERS GLITCHES ELECTRONIC IDENTITYTAG MAKER FIGHTS NEGATIVE REPORTS PLUGGEDIN RIVALS BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS FOR A COMPANY WHOSE NAME STANDS FOR ANIMAL MANAGEMENT TECHNOLOGY AND WHOSE PRODUCT WAS ONCE USED TO MONITOR LIVESTOCK AMTECH CORP HAS COME A LONG WAY NOW A HOT TECHNOLOGY BET AMTECH'S STOCK HAS QUADRUPLED SINCE GOING PUBLIC IN 1989 ON THE STRENGTH OF ITS FUTURISTIC INTELLIGENT VEHICLE HIGHWAY SYSTEMS AND ITS ELECTRONIC TRACKING OF COMMERCIAL TRANSPORTATION VEHICLES ANALYSTS TALK OF BIG CONTRACTS THAT EVENTUALLY WILL INFLATE THE COMPANY'S SALES INTO THE BILLIONS OF LATE HOWEVER AMTECH'S STOCK HAS SWUNG WILDLY AS DOUBTS HAVE SURFACED MOSTLY REGARDING POSSIBLE TECHNOLOGICAL GLITCHES AND INCREASED COMPETITION SINCE OCTOBER AMTECH HAS TRADED AS LOW AS 1550 AND AS HIGH AS 3425 CLOSING YESTERDAY AT 3050 MOST OF THE ATTENTION BOTH POSITIVE AND NEGATIVE HAS FOCUSED ON THE COMPANY'S ELECTRONIC TOLL TAGS WHICH ALLOW MOTORISTS TO BREEZE THROUGH HIGHWAY TOLL BOOTHS WITHOUT STOPPING THE TAG A WINDSHIELDMOUNTED TRANSPONDER CONTAINS DATA READ BY AN ELECTRONIC READER WHICH THEN DEDUCTS THE TOLL FROM A PREPAID ACCOUNT AMTECHEQUIPPED TOLL LANES CAN PROCESS AS MANY AS 1200 TRANSACTIONS AN HOUR COMPARED WITH ABOUT 350 BY MANUALLY OPERATED BOOTHS THE COMPANY ALSO CLAIMS THE SYSTEM REDUCES AUTO EMISSIONS BY REDUCING STOPS AND STARTS AND ALLOWS HIGHWAY OFFICIALS TO STRUCTURE PRICING TO ENCOURAGE OFFPEAK DRIVING AMTECH SYSTEMS ARE IN USE OR SCHEDULED FOR INSTALLATION IN DALLAS HOUSTON NEW ORLEANS OKLAHOMA GEORGIA HONG KONG AND MEXICO AS WELL AS AT SEVERAL TEST SITES BUT THE BIG CONTRACTS ARE YET TO COME INCLUDING A PENDING AWARD FROM AN INTERAGENCY GROUP THAT IS SELECTING A SYSTEM FOR USE IN THREE NORTHEASTERN STATES AMTECH WOULD SEEM TO HAVE THE INSIDE TRACK FOR THE CONTRACT ESTIMATED AT AS HIGH AS 100 MILLION OVER SEVERAL YEARS BECAUSE IT RECENTLY WON A SMALLER CONTRACT FROM NEW YORK STATE THRUWAY AUTHORITY ONE OF THE MEMBERS OF THE GROUP AMTECH'S COMPETITION FOR THAT CONTRACT HOWEVER COMES FROM A JOINT VENTURE THAT INCLUDES AMERICAN TELEPHONE & TELEGRAPH CO AND THAT'S ONLY ONE OF THE BIG NAMES MOSTLY FROM THE CUTBACKRIDDEN DEFENSE ELECTRONICS INDUSTRY READY TO ROLL INTO THIS MARKET OTHERS INCLUDE TEXAS INSTRUMENTS INC LOCKHEED CORP AND GENERAL MOTORS CORP'S HUGHES AIRCRAFT UNIT LAST WEEK HUGHES WAS CHOSEN OVER AMTECH AND THREE OTHER BIDDERS FOR A 2 MILLION SYSTEM THAT WOULD ELIMINATE WEIGHSTATION WAITS FOR MOST TRUCKERS ALONG INTERSTATE ROUTE 75 BETWEEN FLORIDA AND ONTARIO CANADA A SPOKESMAN FOR ANOTHER RIVAL BIDDER AT/COMM INC OF MARBLEHEAD MASS PREDICTS THAT IF THE I75 PILOT PROJECT SUCCEEDS THE FEDERAL GOVERNMENT MAY POUR AS MUCH AS 60 MILLION TO 70 MILLION INTO A NATIONWIDE SYSTEM AMTECH ISN'T WITHOUT SOME BIGNAME BACKERS OF ITS OWN IN EUROPE A JOINT VENTURE WITH ALCATEL AVI SA MARKETS AND SERVICES AMTECH PRODUCTS IN ASIA MITSUBISHI CORP WHICH OWNS A 5 STAKE IN THE COMPANY MARKETS AMTECH PRODUCTS AND IN THE US AMTECH AND MOTOROLA INC ARE INVOLVED IN A JOINT VENTURE TO DEVELOP TECHNOLOGY FOR ELECTRONIC TOLL COLLECTION AND TRAFFICMANAGEMENT SYSTEMS AMTECH'S DOMINANCE IN THE TOLLTAG BUSINESS ALSO HAS BEEN THREATENED BY REPORTS OF PERFORMANCE GLITCHES THAT HAVE ENABLED DRIVERS TO ELUDE TOLL PAYMENTS AMTECH BLAMES THE RUMORS ON SHORT SELLERS WHOM THE COMPANY SAYS HAVE SOLD SHORT 28 MILLION OF THE COMPANY'S 115 MILLION SHARES OUTSTANDING AND WOULD PROFIT FROM A DECLINE IN THE STOCK PRICE INDEED ONE SHORT SELLER INSISTS THAT VIOLATION RATES ON HIGHWAYS WITH THE TOLL SYSTEMS ARE CLOSE TO 15 TO 20 HE CLAIMS THAT HIS ORGANIZATION SENT A CAR ALONG AN OKLAHOMA TURNPIKE 27 TIMES AND ONLY THREE TRIPS WERE REGISTERED AMTECH OFFICIALS DISMISS SUCH ASSERTIONS OFFERING LETTERS FROM SATISFIED TOLL AUTHORITIES AND COMMERCIAL CUSTOMERS THEY CONTEND THE SYSTEM IS MORE THAN 999 ACCURATE AND THAT ANY ENFORCEMENT PROBLEMS ARE THE RESPONSIBILITY OF TOLL AUTHORITIES A SPOKESWOMAN FOR THE OKLAHOMA TURNPIKE AUTHORITY SAYS THAT WITH ITS AMTECH TOLL TAGS AND A VIDEOSURVEILLANCE SYSTEM ITS VIOLATION RATE HAS BEEN ABOUT 3 THE SAME AS WHEN THE AUTHORITY USED CONVENTIONAL AND COINOPERATED LANES AMTECH DOES ACKNOWLEDGE ONE BUG APPARENTLY ITS RAILROAD CAR TAGS WERE BEING RUINED BY RADAR EMITTED FROM A FIVEMEGAWATT TOWER AT A NUCLEAR WARHEAD PLANT IN AMARILLO TEXAS A SIMILAR PROBLEM HAD BEEN REPORTED IN EASTERN EUROPE NEAR THE SITE OF A FORMER RADIO FREE EUROPE JAMMING SYSTEM THE COMPANY HAS SINCE REDESIGNED THE TAGS AND THE RAILROADS HAVE BUILT A 13FOOTHIGH CHAIN LINK FENCE TO REFLECT AMARILLO RADAR G RUSSELL MORTENSON AMTECH'S PRESIDENT INSISTS THAT TOLL TAGS ARE ONLY AN APPETIZER FOR AMTECH ANYWAY EVERYBODY IDENTIFIES WITH THIS HE SAYS HOLDING A TWOINCH BY THREEINCH PLASTICENCASED TOLL TAG IN HIS PALM BUT REALLY WE LIKE THE TRANSPORTATION MARKET AMTECH'S PROPRIETARY TECHNOLOGY HAS BEEN DESIGNATED AS A VOLUNTARY STANDARD BY THREE INDUSTRIES TRUCKING INTERMODAL CONTAINERS AND AIR FREIGHT AND IN THE RAILROAD INDUSTRY IT WILL BE REQUIRED THAT 14 MILLION CARS HAVE RADIOFREQUENCY IDENTIFICATION TAGS BY 1995 LEADING AMTECH TO PROJECT SALES OF ABOUT 100 MILLION OVER ABOUT THREE YEARS FROM JUST THAT MARKET LOOKING AHEAD MR MORTENSON SEES RENTAL CARS WITH AMTECH TAGS THAT SPEED BILLING AND TAGS THAT CAN BE READ AT EXTREMELY HIGH SPEEDS BUILT INTO VEHICLES AT THE FACTORY WHILE MOST ANALYSTS WHO FOLLOW THE COMPANY ARE RELUCTANT TO QUANTIFY THE LONGTERM OUTLOOK FOR AMTECH'S MARKETS MARK ROBERTS OF ALEX BROWN & SONS BALTIMORE WHICH UNDERWROTE AMTECH'S 25 MILLION STOCK OFFERING LAST YEAR SAYS THEIR POTENTIAL SIZE COULD BE AS MUCH AS 10 BILLION OVER TIME FOR 1993 AND 1994 ANALYSTS' ESTIMATES FOR AMTECH'S SALES RANGE AS HIGH 55 MILLION AND 110 MILLION RESPECTIVELY IN 1992 SALES MORE THAN DOUBLED TO 399 MILLION FROM 187 MILLION A YEAR EARLIER THE ANALYSTS' CONSENSUS FORECAST ON EARNINGS IS ABOUT 104 A SHARE THIS YEAR AND 124 A SHARE IN 1994 BEFORE A 5FOR4 STOCK SPLIT EFFECTIVE JUNE 25 THAT COMPARES WITH 64 CENTS A SHARE IN 1992 AND A LOSS OF 50 CENTS A SHARE IN 1991 MEANWHILE AMTECH IS READYING ITSELF FOR A BONANZA AND TRYING TO KEEP INVESTORS HAPPY IN THE FORMER CATEGORY THE COMPANY'S RESEARCH AND DEVELOPMENT ENGINEERING AND MANUFACTURING OPERATIONS IN NEW MEXICO HAVE BEEN CONSOLIDATED INTO A GLEAMING NEW 4 MILLION STATEOFTHEART FACILITY FUNDED BY CASH FLOW ALONE IN THE LATTER THE COMPANY'S RECENTLY ANNOUNCED STOCK SPLIT WAS ITS SECOND SINCE GOING PUBLIC A TWOCENTASHARE QUARTERLY DIVIDEND ANNOUNCED AT THE TIME WAS ITS FIRST AT&T CO AND MARK IV INDUSTRIES INC TEXAS INSTRUMENTS INC AND PETER KIEWIT SONS' INC LOCKHEED CORP HUGHES AIRCRAFT CO AT/COMM INC 9306220059 930622 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JUNE 9 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9306220058 930622 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 7/8 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 CORP312 30 TO 59 DAYS 313 60 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 286 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 310 ONE MONTH 317 THREE MONTHS 333 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 707 60 DAYS 715 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 707 60 DAYS 717 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 9306220057 930622 WHO'S NEWS JOHNSON & JOHNSON MANAGER MAKES MOVE TO GENETIC THERAPY GAITHERSBURG MD MICHAEL D CASEY A TOP JOHNSON & JOHNSON MANAGER MOVED TO GENETIC THERAPY INC A SMALL BIOTECHNOLOGY CONCERN HERE TO BECOME ITS PRESIDENT AND CHIEF OPERATING OFFICER MR CASEY 46 YEARS OLD WAS PRESIDENT OF J&J'S MCNEIL PHARMACEUTICAL SUBSIDIARY WHICH WAS MERGED WITH ANOTHER J&J UNIT ORTHO PHARMACEUTICAL CORP THIS YEAR IN A COSTCUTTING MOVE MR CASEY SUCCEEDS M JAMES BARRETT 50 AS PRESIDENT OF GENETIC THERAPY MR BARRETT REMAINS CHIEF EXECUTIVE OFFICER AND BECOMES CHAIRMAN MR CASEY SAID HE MADE THE MOVE TO THE SMALLER COMPANY BECAUSE HE SAW HEALTH CARE MOVING TOWARD TECHNOLOGIES LIKE THE COMPANY'S GENE THERAPY PRODUCTS I BELIEVE THAT THE FIELD IS EMERGING AND IS PREPARED TO BREAK LOOSE HE SAID MR CASEY DECLINED TO DIVULGE HIS COMPENSATION WHICH HE SAID WAS COMPARABLE TO HIS PACKAGE AT J&J BUT ACKNOWLEDGED THAT THE EQUITY PORTION WAS HIGHER AT GENETIC THERAPY NOTING OTHER RECENT MOVES BY PHARMACEUTICAL EXECUTIVES TO SMALL BIOTECH COMPANIES JOHN TW HAWKINS THE EXECUTIVE RECRUITER WHO ARRANGED THE GENETIC THERAPY PLACEMENT SAID THE EQUITY PLAY IS OBVIOUSLY THE DRAW FOR MANY OF THESE EXECUTIVES IN EVALUATING SMALL AND EMERGING COMPANIES BUT HE ADDED FUNDAMENTALLY IT'S THE EXCITEMENT AND CHALLENGE OF BUILDING AN EMERGING PHARMACEUTICAL COMPANY THAT ATTRACTS THE EXECUTIVES 9306220056 930622 BUSINESS BRIEF OCELOT ENERGY INC HOLDERS APPROVE SPINOFF OF 65 OF LYNX SUBSIDIARY HOLDERS OF OCELOT ENERGY INC APPROVED THE SPINOFF OF 65 OF LYNX ENERGY SERVICES CORP ITS WHOLLY OWNED DRILLING AND OILFIELD SERVICES SUBSIDIARY SUBJECT TO COURT APPROVAL HOLDERS OF OCELOT IN CALGARY ALBERTA ARE TO RECEIVE ONE LYNX SHARE FOR EACH FIVE OCELOT SHARES HELD LYNX PRESIDENT DOUGLAS CUTTS SAID IT WILL HAVE ASSETS OF 481 MILLION CANADIAN DOLLARS 387 MILLION SHAREHOLDERS EQUITY OF C345 MILLION AND NO LONGTERM DEBT WHEN IT BEGINS OPERATIONS JULY 1 IT IS EXPECTED TO TRADE ON THE TORONTO STOCK EXCHANGE OCELOT SAID IN A PROXY CIRCULAR BEFORE THE VOTE THAT IT EXPECTS LYNX TO GENERATE STRONGER FINANCIAL PERFORMANCE AND PUBLIC MARKET VALUATION WHEN IT OPERATES AS A SEPARATE FOCUSED PUBLIC COMPANY OCELOT'S PRESIDENT DAVID LYONS SAID OCELOT IS ATTEMPTING TO TIGHTEN ITS FOCUS ON ITS CORE OIL AND GAS EXPLORATION AND PRODUCTION OPERATIONS OCELOT'S WIDELY HELD CLASS B SHARES CLOSED YESTERDAY AT C1475 UNCHANGED IN TRADING ON THE TORONTO STOCK EXCHANGE 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 9306220055 930622 ABREAST OF THE MARKET STRONG BOND MARKET HELPS STOCKS TO RECOVER FROM FRIDAY SELLOFF BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS SNAPPED BACK FROM FRIDAY'S SHARP SELLOFF AIDED IN PART BY STRENGTH IN BONDS THE DOW JONES INDUSTRIAL AVERAGE WHICH TUMBLED 2712 ON FRIDAY JUMPED 1605 OR 046 TO 351082 BROADER INDEXES POSTED SIMILAR GAINS ADVANCING BIG BOARD ISSUES OUTPACED DECLINERS 1119837 ANALYSTS SAID THAT AFTER AN EXTREME BURST OF SELLING ON A TRIPLEWITCHING FRIDAY IT ISN'T UNCOMMON TO SEE A RECOVERY THE NEXT SESSION ALL OF FRIDAY'S LOSS CAME IN THE FINAL 30 MINUTES OF TRADING AND WAS TIED BY OBSERVERS TO THE QUARTERLY EXPIRATIONS OF OPTIONS AND FUTURES ON STOCK INDEXES AND OPTIONS ON INDIVIDUAL STOCKS MEANWHILE A RALLY IN LONGTERM BONDS TRIGGERED IN PART BY STRENGTH IN THE DOLLAR ALSO BOOSTED INVESTORS' SPIRITS TRADERS SAID THE YIELD ON THE 30YEAR TREASURY FELL TO 678 LOW INTEREST RATES MAKE THE POTENTIAL RETURNS ON STOCKS MORE APPEALING TO INVESTORS FURTHER LOW RATES MEAN LOWER COSTS FOR CORPORATIONS AND CAN HELP TO STIMULATE ECONOMIC GROWTH CYCLICAL STOCKS WERE AMONG THE STRONGEST MINNESOTA MINING & MANUFACTURING JUMPED 1 3/8 TO 108 3/8 GENERAL MOTORS ADDED 1 1/8 TO 42 7/8 ALLIEDSIGNAL CLIMBED 1 5/8 TO 66 7/8 AND SEARS ROEBUCK & CO GAINED 1/2 TO 54 1/4 I THINK THERE STILL IS A FEELING THAT THE ECONOMY IS ON A SLOW STEADY TRACK AND CYCLICAL COMPANIES WILL STILL PRODUCE REASONABLE EARNINGS SAID JOSEPH DEMARCO MANAGING DIRECTOR OF EQUITY TRADING AT MARINVEST A UNIT OF HONGKONG & SHANGHAI BANK DESPITE THE GAINS IN MANY ECONOMICALLY SENSITIVE ISSUES CATERPILLAR DROPPED 1 1/2 TO 75 3/4 ANALYSTS SAID THE PEORIA ILL HEAVYEQUIPMENT COMPANY HAD INDICATED THAT THERE WAS WEAKNESS IN ITS OVERSEAS OPERATIONS LATER IN THE SESSION THOUGH THE COMPANY SAID ITS SALES OUTLOOK HASN'T CHANGED FROM ITS PREDICTION IN APRIL OF MODERATE IMPROVEMENT WORLDWIDE STANDARD & POOR'S 500STOCK INDEX ROSE 254 OR 057 TO 44622 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 125 OR 051 TO 24619 BIG BOARD VOLUME DROPPED TO 219390000 SHARES FROM 294180000 SHARES ON FRIDAY PETER CANELO MARKET STRATEGIST AT NATWEST SECURITIES PREDICTED MORE STOCK MARKET GAINS THIS WEEK IF THE DOLLAR REMAINS STRONG A STRONG CURRENCY HELPS TO LURE FOREIGN INVESTORS INTO DOLLARDENOMINATED SECURITIES BUT JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO IS LESS SANGUINE YESTERDAY HE SAID WAS THE CALM BEFORE THE STORM THERE IS A GREAT DEAL OF CONCERN ARISING OUT OF THE SECONDQUARTER EARNINGS MANY COMPANIES HAVE PREDICTED DISAPPOINTING RESULTS FOR THE QUARTER WHICH ENDS NEXT WEEK AND MR BATTIPAGLIA SAID MANY INVESTORS WON'T FEEL COMFORTABLE ABOUT TAKING BIG POSITIONS IN THE MARKET UNTIL MORE NEWS ABOUT CORPORATE PROFITS IS RELEASED IN THE MIDDLE OF NEXT MONTH NIKE TUMBLED 4 1/8 TO 57 7/8 AFTER SKIDDING 4 7/8 FRIDAY ON A DISAPPOINTING EARNINGS PROJECTION MERRILL LYNCH DEAN WITTER REYNOLDS AND MABON SECURITIES ALL DOWNGRADED RATINGS ON THE FOOTWEAR COMPANY TODAY REEBOK WHICH TRIPPED ON ITS OWN DOWNBEAT FORECAST LAST WEEK LOST 3/8 TO 29 3/8 TAMBRANDS JUMPED 6 1/8 TO 46 1/4 THE WALL STREET JOURNAL REPORTED THAT ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION THE BOARD OF THE WHITE PLAINS NY MAKER OF TAMPAX TAMPONS IS EXPLORING A POSSIBLE SALE OF THE COMPANY TAMBRANDS HAS DECLINED TO COMMENT SHARES OF JOHNSON & JOHNSON ONE OF THE COMPANIES SAID TO BE INTERESTED IN ACQUIRING TAMBRANDS LOST 3/8 TO 42 1/2 THE NEW BRUNSWICK NJ COMPANY ALSO HAD NO COMMENT GM RALLIED AFTER THE AUTO MAKER DISCLOSED PLANS TO BEGIN PRODUCTION OF ITS CHEVROLET CAVALIER AT ITS LANSING MICH PLANT ADDING 800 TO 1000 JOBS GM'S CHIEF EXECUTIVE OFFICER JOHN F SMITH FORECAST TOTAL US VEHICLE SALES OF 14 MILLION FOR THIS YEAR UP FROM A PREVIOUS GM ESTIMATE OF 137 MILLION DAMON CORP JUMPED 1 7/8 TO 15 3/4 AFTER IT AGREED TO BE ACQUIRED BY NATIONAL HEALTH LABORATORIES OF LA JOLLA CALIF FOR CASH AND STOCK NATIONAL HEALTH WILL BUY 55 OF DAMON FOR 16 A SHARE IN CASH IT PLANS TO ACQUIRE THE REST OF THE NEEDHAM HEIGHTS MASS MEDICAL TESTING SERVICES CONCERN FOR 16 A SHARE IN NATIONAL HEALTH COMMON STOCK THAT STOCK EASED 3/8 TO 17 1/2 VALASSIS COMMUNICATIONS SLID 2 3/4 TO 13 THE LIVONIA MICH COUPON PUBLISHER SAID INCREASING PRICE COMPETITION WILL SEVERELY AFFECT ITS EARNINGS FOR ITS FISCAL YEAR ENDING JUNE 1994 ALTHOUGH FISCAL 1993 EARNINGS WILL BE IN LINE WITH EXPECTATIONS THE COMPANY SUSPENDED ITS 14CENT QUARTERLY DIVIDEND SUNAMERICA JUMPED 2 1/8 TO 32 1/4 AFTER GOLDMAN SACHS ANALYST JOAN ZIEF RAISED HER RATING ON THE STOCK TO OUTPERFORM FROM MODERATE OUTPERFORM SAYING THE STOCK IS UNDERVALUED BASED ON THE COMPANY'S PROSPECTS FOR EARNINGS GROWTH GOLDMAN ADDED THE LOS ANGELES ANNUITY AND MUTUAL FUND COMPANY'S STOCK TO A RECOMMENDED LIST BRIGGS & STRATTON INCREASED 2 1/2 TO 63 7/8 THE WAUWATOSA WIS ENGINE MAKER WAS PROFILED IN THIS WEEK'S BARRON'S MAGAZINE THE COMPANY EXPECTS ITS SECONDQUARTER EARNINGS TO BE BETTER THAN ANALYSTS HAD EXPECTED 9306220054 930622 JUSTICE DEPARTMENT GETS 350000 AWARD IN HOUSING BIAS CASE WASHINGTON THE JUSTICE DEPARTMENT SAID IT HAS OBTAINED THE LARGEST CIVIL RACEDISCRIMINATION AWARD EVER LEVIED AGAINST A PRIVATE LANDLORD THE 350000 AWARD PART OF A PROPOSED SETTLEMENT OF A GOVERNMENT LAWSUIT AGAINST THE OWNERS AND MANAGER OF TWO DETROITAREA APARTMENT COMPLEXES GREW OUT OF THE DEPARTMENT'S RANDOMTESTING PROGRAM PAIRS OF BLACK AND WHITE PEOPLE POSING AS PROSPECTIVE TENANTS WERE SENT TO LANDLORDS TO ASK ABOUT RENTALS IN THE DETROIT CASE WHITE TESTERS WERE TOLD OF AVAILABLE APARTMENTS ALL BLACK TESTERS WERE TURNED AWAY THE JUSTICE DEPARTMENT HAS DONE TESTING PREVIOUSLY AFTER BEING TOLD ABOUT ALLEGED HOUSING DISCRIMINATION RECENTLY IT BEGAN SENDING TESTERS INTO CITIES PROACTIVELY TO SEEK OUT POTENTIAL HOUSING BIAS DETROIT IS ONE OF SEVEN CITIES IN WHICH SUCH TESTING IS NOW GOING ON THE DEPARTMENT DECLINED TO IDENTIFY THE OTHER SIX THE DEPARTMENT LAUNCHED THE RANDOM TESTING PROGRAM AFTER CONGRESS AMENDED THE FEDERAL FAIRHOUSING LAW IN 1989 TO AUTHORIZE THE GOVERNMENT TO SEEK CIVIL PENALTIES AND MONETARY DAMAGES IN SUCH CASES A SPOKESWOMAN SAID PREVIOUSLY THE DEPARTMENT COULD SEEK ONLY JUDICIAL ORDERS BARRING DISCRIMINATION SHE ADDED THE PROPOSED AWARD IN THE DETROIT CASE REQUIRES THE APPROVAL OF A FEDERAL TRIAL JUDGE THERE THE AWARD WOULD INCLUDE A 125000 PENALTY TO BE PAID TO THE GOVERNMENT AND A 225000 FUND TO BE DIVIDED AMONG PEOPLE WHO ARE UNFAIRLY TURNED AWAY BY LANDLORDS UNDER THE PROPOSED SETTLEMENT OF THE GOVERNMENT'S SUIT THE DEFENDANTS WILL PAY FOR ADVERTISING TO LOCATE SUCH VICTIMS THE JUSTICE DEPARTMENT SPOKESWOMAN SAID 9306220053 930622 BUSINESS BRIEF HALSEY DRUG CO PRESIDENT RESIGNS AS CONCERN AGREES TO SETTLE INVESTIGATION HALSEY DRUG CO BROOKLYN NY SAID IT WILL PAY 25 MILLION OVER FIVE YEARS TO SETTLE A CRIMINAL INVESTIGATION OF ITS GENERICDRUG PRACTICES THE COMPANY ALSO SAID ITS PRESIDENT AND CHIEF EXECUTIVE RESIGNED THE GENERICDRUG MAKER SAID IT REACHED AN AGREEMENT WITH THE JUSTICE DEPARTMENT THAT RESOLVES ALL OPEN ISSUES RELATED TO HALSEY'S DRUG APPROVALS AND RECORDKEEPING PRACTICES AT ITS BROOKLYN PLANT THE COMPANY HAD RECALLED SOME PRODUCTS EARLIER THIS YEAR IN ADDITION TO THE FINE HALSEY SAID IT WILL PLEAD GUILTY TO FIVE COUNTS RELATING TO THE ADDITION OF AN INACTIVE INGREDIENT TO ONE DRUG PRODUCT ALSO JAY MARCUS HALSEY'S PRESIDENT CHIEF EXECUTIVE AND A DIRECTOR RESIGNED HE WILL BE SUCCEEDED BY ROSENDO FERRAN PREVIOUSLY SENIOR EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR MARCUS COULDN'T BE REACHED FOR COMMENT HALSEY SAID ITS ANNUAL MEETING SCHEDULED FOR THIS MONTH WILL BE POSTPONED 9306220052 930622 HEARD ON THE STREET WARNACO SHORTSELLERS CITE RECEIVABLES DEBT PALTRY CASH LEVEL DESPITE ANALYSTS' SUPPORT BY JOHN R DORFMAN AND TERI AGINS STAFF REPORTERS OF THE WALL STREET JOURNAL JUST WHEN WALL STREET IS STARTING TO WARM UP TO WARNACO GROUP SHORTSELLERS ARE BETTING THE COMPANY WILL STUMBLE WARNACO A LEADING MAKER OF BRAS UNDER THE WARNER AND OLGA BRANDS RECENTLY STARTED SELLING BRAS IN DISCOUNT STORES UNDER THE FRUIT OF THE LOOM NAME IT ALSO SELLS MENSWEAR SUCH AS HATHAWAY SHIRTS CHRISTIAN DIOR TIES AND CASUAL WEAR FROM PURITAN AND CHAPS BY RALPH LAUREN THE NEW YORK COMPANY RANG UP 6151 MILLION IN SALES LAST YEAR WITH WELLKNOWN STEADY BRANDS WARNACO ISN'T THE TYPE OF STOCK SHORTSELLERS NORMALLY TARGET THE SHORTS BORROW STOCK AND SELL IT IN AN ATTEMPT TO PROFIT FROM AN ANTICIPATED DECLINE EVENTUALLY THEY MUST BUY SHARES TO RETURN TO THE LENDER BUT IF THE STOCK FALLS MEANWHILE THEY PROFIT AS OF MIDJUNE 562964 SHARES OF WARNACO STOCK HAD BEEN SOLD SHORT WARNACO SHOWED AN IMPRESSIVE 20 YEAROVERYEAR GAIN IN SALES IN THE FIRST QUARTER WITH A NICE EARNINGS INCREASE AND PARTICULARLY GOOD MENSWEAR SALES BUT THE SHORTS SAY THEY SEE HINTS OF UNDERLYING WEAKNESS FOR EXAMPLE RECEIVABLES MONEY OWED THE COMPANY BY CUSTOMERS AMOUNT TO MORE THAN 70 DAYS OF SALES COMPARED WITH 56 IN JANUARY 1992 AND 51 IN JANUARY 1991 WARNACO SHOWS ONLY 35000 IN CASH ON ITS BALANCE SHEET AS OF EARLY APRIL WHILE LONGTERM DEBT HAS BEEN REDUCED IT STILL IS 2782 MILLION OR MORE THAN TWICE STOCKHOLDERS' EQUITY SHORTTERM DEBT HAS EDGED UP OF LATE THE STATED NET WORTH INCLUDES A BIG CHUNK OF INTANGIBLE ASSETS TANGIBLE NET WORTH REFLECTING HARD ASSETS LIKE MACHINERY AND INVENTORIES MINUS LIABILITIES IS NEGATIVE FOR EACH CRITICISM WARNER'S CHIEF EXECUTIVE OFFICER LINDA WACHNER RATTLES OFF AN ANSWER FOR EXAMPLE RECEIVABLES IF COUNTED BY THE METHOD THE COMPANY CONSIDERS SOUND ARE HOLDING AT ABOUT 60 DAYS OF SALES SHE SAYS I'M VERY HAPPY WITH MY 60 DAYS ASKED IF WARNACO IS LETTING STORES TAKE LONGER TO PAY SHE SAYS ABSOLUTELY NOT THE REDUCTION OF DEBT MS WACHNER SAYS IS PROCEEDING ON SCHEDULE WHAT ABOUT THAT PUNY CASH LEVEL A COMPANY SUCH AS OURS DOES NOT SIT WITH CASH ON THE BALANCE SHEET SHE SAYS EVERY DOLLAR THAT WE RECEIVE GOES TO PAY DOWN OUR DEBT EVERY NIGHT WHEN CASH IS NEEDED A REVOLVING BANK CREDIT LINE IS TAPPED NOT ALL CLOTHING COMPANIES CHOOSE TO RUN WITHOUT A CASH CUSHION HOWEVER HERE ARE THE RECENT CASH HOLDINGS AT THREE OF WARNACO'S PEER COMPANIES 136 MILLION AT JONES APPAREL GROUP 228 MILLION AT CRYSTAL BRANDS AND 325 MILLION AT PHILLIPSVAN HEUSEN THE SHORTS' BET AGAINST THE STOCK FLIES IN THE FACE OF SEVERAL BROKERAGEHOUSE RECOMMENDATIONS SMITH BARNEY'S WILLIAM N SMITH AND CATHERINE K BLEDNICK RECENTLY RECOMMENDED WARNACO PARTLY BECAUSE IT IS GAINING MARKET SHARE IN BOTH BRAS ESTIMATED 37 MARKET SHARE AND MENSWEAR 92 GARY JACOBSON OF KIDDER PEABODY CALLS WARNACO A BUY CITING THE ASTUTE GUIDANCE OF CHAIRPERSON LINDA WACHNER AND HER DRIVEN TEAM AND PROJECTING ANNUAL 15 EARNINGS INCREASES SHARON RAPPAPORT OF MORGAN STANLEY A LONGTIME FAN OF THE STOCK HAS REAFFIRMED HER BUY RECOMMENDATION SHE SAYS WARNACO TRADING AT 32 A SHARE YESTERDAY COULD HIT 42 WITHIN A YEAR SOME MONEY MANAGERS LIKE THE STOCK TOO A BRA IS NOT LIKE A SUIT THAT YOU CAN KEEP IN YOUR CLOSET FOR FIVE OR SIX YEARS OR IF YOU'RE MY HUSBAND 12 YEARS SAYS MONEY MANAGER EILEEN P ROMINGER OF OPPENHEIMER CAPITAL YOU PUT THIS THING IN THE DRYER A FEW TIMES AND BEFORE LONG IT'S TIME FOR A REPLACEMENT MS ROMINGER ALSO LIKES THE STOCK'S VALUATION AS SHE CALCULATES IT THE STOCK SELLS FOR A MERE 11 TIMES THE EARNINGS SHE EXPECTS THIS FISCAL YEAR FRANK HUSIC A SAN FRANCISCO MONEY MANAGER SAYS WARNACO MANAGEMENT IS UNUSUALLY ALERT FOR EXAMPLE IT WAS QUICK TO GET PAID BY TROUBLED RETAILERS BEFORE THEY WENT INTO BANKRUPTCY PROCEEDINGS HE ALSO PRAISES MS WACHNER FOR PENETRATING DISCOUNT STORES LIKE WALMART AND KMART WITH ITS NEW FRUIT OF THE LOOM BRA LINE WARNACO EXPECTS THE NEW LINE WILL BECOME A MAJOR FORCE BUT SOME COMPETITORS SAY WARNACO WON'T EASILY DOMINATE THE DISCOUNT NICHE AS IT DOES THE DEPARTMENTSTORE MARKET WARNACO SAYS FRUIT OF THE LOOM BRAS ARE PRICED AT 794 TO 994 WHICH IS BELOW THE USUAL PRICES FOR PLAYTEX ABOVE HOLLYWOOD VASSARETTE AND ABOUT EVEN WITH HANES HER WAY EVEN ITS ENEMIES AREN'T SUGGESTING THAT WARNACO IS IN DIRE FINANCIAL STRAITS BUT THE ISSUES RAISED BY THE SHORTS BEAR WATCHING THERE'S AN OLD STOCKMARKET SAYING TROUBLE STARTS ON THE BALANCE SHEET AND MIGRATES TO THE INCOME STATEMENT AT THE MOMENT WARNACO'S INCOME STATEMENT LOOKS FINE BUT WISE INVESTORS LOOK CAREFULLY AT BOTH YEAR ENDED JAN 2 1993 AVERAGE DAILY TRADING VOLUME COMMON SHARES OUTSTANDING 9306220051 930622 CALPERS WON'T INVEST IN ACTIVIST'S FUND BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM IN A SETBACK FOR AN ADVERSARIAL BRAND OF SHAREHOLDER ACTIVISM DECIDED NOT TO INVEST IN A FUND BEING RAISED BY SHAREHOLDER ACTIVIST ROBERT MONKS THE BOARD OF THE 73 BILLION CALIFORNIA PENSION FUND REJECTED A PLAN TO INVEST AS MUCH AS 200 MILLION IN THE FUND SAID RICHARD KOPPES GENERAL COUNSEL OF CALPERS THE BOARD FELT WE COULD ACCOMPLISH THE SAME GOALS AS MR MONKS'S FUND INTERNALLY HE SAID THE PENSION FUND'S DECISION IN A VOTE WEDNESDAY POINTS TO SOME OF THE PROBLEMS OF RELATIONSHIP INVESTING WHICH HAS BECOME A CATCH PHRASE IN THE PENSIONFUND BUSINESS THE CONCEPT CENTERS ON THE IDEA THAT INSTITUTIONAL INVESTORS LIKE PENSION FUNDS CAN IMPROVE THEIR RETURNS IN THE STOCK MARKET BY MAKING LONGTERM INVESTMENTS IN COMPANIES AND FORGING A RELATIONSHIP WITH MANAGEMENT WARREN BUFFETT IS EVERYONE'S MODEL FOR RELATIONSHIP INVESTING SAID ROLAND MACHOLD INVESTMENT OFFICER OF THE NEW JERSEY INVESTMENT BOARD NEW JERSEY'S PENSION FUND BUT MR BUFFETT WHO IS WELLKNOWN FOR TAKING LARGE STAKES IN COMPANIES IS DIFFICULT TO EMULATE HE SAID THE PROBLEM HE SAID IS THAT PENSION FUNDS AREN'T CONSIDERED INSIDERS BY CORPORATE MANAGEMENTS NOR ARE THEY WILLING TO ROCK THE BOAT HE SAID THE STRATEGY IN SHORT IS VERY DIFFICULT TO CARRY FORWARD HE SAID THE CALPERS BOARD WILL MEET NEXT MONTH TO DISCUSS HOW TO PURSUE ITS OWN RELATIONSHIP INVESTING STRATEGY INTERNALLY SAID MR KOPPES THE BOARD ALSO WILL DISCUSS A VARIETY OF OTHER INVESTMENT ISSUES NEXT MONTH INCLUDING A PLAN TO DECREASE THE NUMBER OF OUTSIDE INVESTMENT MANAGERS IT USES IN AN EFFORT TO REDUCE ITS MANAGEMENT FEES HE SAID THE PENSION FUND'S DECISION REPRESENTS A BLOW TO MR MONKS WHO HAD BEEN TRYING TO CONVINCE INSTITUTIONAL INVESTORS TO INVEST IN THE FUND FOR MORE THAN A YEAR CALPERS WAS THE BEST PROSPECT I HAD IN A WORLD WHERE NEW IDEAS ARE DIFFICULT TO SELL SAID MR MONKS WHO IS KNOWN FOR HIS ROLE OVER THE LAST SEVERAL YEARS AS A VOCAL CRITIC OF SEARS ROEBUCK & CO MANAGEMENT AS A RESULT MR MONKS SAID HE IS TALKING WITH WALL STREET FIRMS ABOUT OFFERING THE SAME IDEA TO INDIVIDUAL INVESTORS AS A CLOSEDEND MUTUAL FUND HE SAID HE ALSO PLANS TO CONTINUE TO TRY PERSUADING OTHER INSTITUTIONAL INVESTORS TO INVEST IN HIS ORIGINAL IDEA FOR A FUND OTHER FUNDS AIMED AT RELATIONSHIP INVESTING HAVE GOTTEN OFF TO A SLOW START AS WELL DILLON READ & CO'S ALLIED INVESTMENT PARTNERS A FUND DESIGNED TO TAKE A SOFTER TOUCH WITH MANAGEMENT OF TROUBLED COMPANIES BY INVESTING AFTER THE COMPANIES HAVE BEGUN TO TURN AROUND HAS SO FAR RAISED ONLY 250 MILLION FROM INSTITUTIONAL INVESTORS AFTER ONE YEAR DILLON READ IS TRYING TO RAISE AN ADDITIONAL 350 MILLION SOME SHAREHOLDER ACTIVISTS SAY THE MAIN PROBLEM WITH THESE RELATIONSHIP FUNDS IS THAT INSTITUTIONAL INVESTORS MUST FIRST BECOME ACCUSTOMED TO THE IDEA I THINK IT'S GOING TO TAKE THE RIGHT COMBINATION OF PEOPLE SAID RALPH WHITWORTH PRESIDENT OF UNITED SHAREHOLDERS ASSOCIATION I DON'T THINK CALPERS'S DECISION IS THE DEATH KNELL OF RELATIONSHIP INVESTING 9306220050 930622 SOME INSURERS FACE TIGHTENING OF CAPITAL RULES PROPERTY CASUALTY FIRMS MAY HAVE TO INDICATE ABILITY TO COVER RISKS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO PROPERTY AND CASUALTY INSURERS WOULD HAVE TO MEET STRINGENT CAPITAL REQUIREMENTS UNDER A PROPOSAL LIKELY TO BE ADOPTED BY INSURANCE REGULATORS THE STANDARDS SIMILAR TO THOSE NOW IN PLACE FOR LIFE AND HEALTH INSURERS WOULD REQUIRE PROPERTY AND CASUALTY INSURERS TO HAVE SUFFICIENT CAPITAL TO MEET THE RISKINESS OF THEIR INVESTMENTS AND OPERATIONS FAILURE TO MEET THE REQUIREMENTS WOULD MEAN REGULATORS COULD EITHER SEIZE A TROUBLED INSURER OR ORDER OPERATIONAL CHANGES THE PROPERTY AND CASUALTY MARKET ALONE INVOLVES ANNUAL PREMIUMS TOTALING 500 BILLION THE RULES ALSO WOULD GIVE CONSUMERS ANOTHER WAY TO GAUGE THE FINANCIAL STABILITY OF THEIR INSURANCE COMPANY UNDER THE PROPOSAL EACH INSURER MUST REPORT TO WHAT EXTENT IT EXCEEDS OR FALLS BELOW ITS MINIMUMCAPITAL THRESHOLD INSURANCE REGULATORS RELEASED A DRAFT OF THE RULES AT A CONFERENCE FOR STATE INSURANCE COMMISSIONERS HERE WE ARE ENTERING THE HOME STRETCH OF ONE OF THE MOST IMPORTANT IMPROVEMENTS IN INSURANCE REGULATION SAID VIRGINIA INSURANCE COMMISSIONER STEPHEN FOSTER CHAIRMAN OF THE NATIONAL ASSOCIATION OF INSURANCE COMMISSIONERS REGULATORS WILL VOTE ON WHETHER TO ADOPT THE PROPOSAL IN DECEMBER THE RULES IF PASSED WOULD GO INTO EFFECT NEXT YEAR AND THE RESULTS WOULD BE AVAILABLE TO THE PUBLIC IN THE SPRING OF 1995 INSURANCE EXPERTS SAY IT'S UNLIKELY THAT REGULATORS WILL MAKE MAJOR CHANGES IN THE PROPOSAL BEFORE VOTING ON IT THE EFFORT COMES AT A TIME WHEN CONGRESS IS CONCERNED ABOUT WHETHER STATES ARE UP TO THE JOB OF OVERSEEING INSURANCE COMPANIES UNDER THE SOCALLED RISKBASED CAPITAL STANDARDS THE KEY FACTORS IN DETERMINING CAPITAL ADEQUACY WILL BE ASSET QUALITY AND LOSS RESERVES A TRADE GROUP THE ALLIANCE OF AMERICAN INSURERS HAS ATTACKED THE FORMULA ON GROUNDS THAT IT WOULD FORCE INSURERS TO MAKE DECISIONS BASED ON A FORMULA INSTEAD OF ON ECONOMICS THE GROUP ARGUES THAT A BETTER MEASURE OF SOLVENCY WOULD BE TO MEASURE WHETHER A COMPANY GENERATES SUFFICIENT CASH TO SURVIVE ADVERSITY SUCH AS A MAJOR HURRICANE OR A SHARP RISE IN INTEREST RATES AMERICAN INTERNATIONAL GROUP INC SAFECO CORP AND SEVERAL OTHER INSURERS HAVE ENDORSED THE PROPOSAL THE CASHFLOW APPROACH WOULD AVOID MANY OF THE HARMFUL BUSINESS INCENTIVES WE SEE IN THE CURRENT FORMULA SAID RODGER LAWSON PRESIDENT OF THE TRADE GROUP STATE FARM MUTUAL AUTOMOBILE INSURANCE CO THE COUNTRY'S LARGEST PROPERTY AND CASUALTY INSURER IS PROMOTING ANOTHER METHOD TO ENHANCE SOLVENCY TO PREVENT TROUBLED INSURERS FROM DEPLETING THEIR ASSETS STATE FARM WOULD HAVE INSURERS GIVE A THIRD PARTY SUCH AS A BANK TRUST DEPARTMENT AUTHORITY OVER A SIZABLE CHUNK OF THEIR ASSETS IN AN APPROACH KNOWN AS A SAFET ACCOUNT YESTERDAY STATE FARM DID JUST THAT TRANSFERRING 8 BILLION OF ASSETS TO CUSTODIAL ACCOUNTS AT THREE DIFFERENT BANKS THE COMPANY WANTS TO PROVE THAT THE IDEA IS ADMINISTRATIVELY POSSIBLE SAID ROGER JOSLIN STATE FARM'S TREASURER UNDER THE PLAN STATE FARM CAN STILL TRADE SECURITIES BUT CANNOT WITHDRAW FROM THE ACCOUNT OR CONVERT SAFE ASSETS INTO RISKIER ONES WITHOUT APPROVAL OF THE TRUSTEE AND STATE INSURANCE REGULATORS 9306220049 930622 TECHNOLOGY & SCIENCE US URGED TO BASE VAST R&D SPENDING ON SCIENTIFIC FIELDS' COMPETITIVE STANCE BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL GOVERNMENT SHOULD DIVVY UP ITS 70 BILLION RESEARCHANDDEVELOPMENT BUDGET ACCORDING TO EVALUATIONS OF THE COMPETITIVENESS OF US SCIENCE AND TECHNOLOGY THE NATIONAL ACADEMY OF SCIENCES RECOMMENDED IF ADOPTED THE RECOMMENDATIONS WOULD LEAD TO A BROAD SHIFT IN POWER OVER SCIENCE AND TECHNOLOGY SPENDING TO INDEPENDENT PANELS THAT WOULD EVALUATE WHETHER THE US LEADS IN DIFFERENT SCIENTIFIC FIELDS THE CURRENT US SYSTEM FOR ALLOCATING R&D FUNDS IS A MISHMASH IN WHICH ACADEMIC AND CORPORATE LOBBYISTS CONGRESSIONAL COMMITTEES AND FEDERAL AGENCIES SQUABBLE OVER FUNDS THE PROCESS IS CHAOTIC SAID FRANK PRESS PRESIDENT OF THE ACADEMY THE ACADEMY REPORT RECOMMENDED A MORE RIGOROUS AND CENTRALIZED SYSTEM FOR GOVERNMENT R&D SPENDING WHICH ACCOUNTED FOR ABOUT 43 OF TOTAL R&D SPENDING IN THE US LAST YEAR IN AREAS OF BASIC SCIENCE THE US WOULD CONVENE A SERIES OF INDEPENDENT PANELS STAFFED BY EXPERTS IN THE FIELD TO GAUGE WHERE THE US STOOD COMPARED WITH OTHER COUNTRIES THE PANELS COULD JUDGE WHERE THE MOST EXCITING AND PROMISING IDEAS ARE EMERGING CONSIDER WHERE THE BEST NEW TALENT IS LOCATING AND EXAMINE THE COMPARATIVE CAPABILITIES OF RESEARCH FACILITIES OR EQUIPMENT THE REPORT SAID IN FIELDS OF APPLIED TECHNOLOGY THE REPORT ALSO URGED THE US TO JUDGE ITSELF AGAINST COMPETITORS BUT IT WAS LESS CLEAR ABOUT HOW TO DO THIS IT DIDN'T FORTHRIGHTLY CALL FOR EXPERT PANELS BUT TALKED OF A VAGUE PARTNERSHIP WITH INDUSTRY GENERALLY THE REPORT'S RECOMMENDATIONS ARE ALONG THE LINES OF THOSE ADVOCATED BY THE CLINTON ADMINISTRATION WHICH WANTS THE GOVERNMENT TO PROMOTE COMMERCIALLY USEFUL TECHNOLOGY AND STAY AHEAD OF COMPETITORS THE INDEPENDENT PANELS COULD GIVE THE ADMINISTRATION A WAY TO ANALYZE HOW WELL THE US IS PERFORMING INTERNATIONALLY SO IT COULD ALLOCATE FUNDS HOWEVER THE RECOMMENDATIONS ARE BOUND TO STIR CRITICISM THAT THE PANELS WOULD FOSTER CENTRALIZED PLANNING AND LEAD THE US TO SINK FUNDS IN PROJECTS OF DUBIOUS VALUE JUST TO STAY AHEAD OF COMPETITORS FOR YEARS FOR INSTANCE THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION AND THE DEFENSE DEPARTMENT JUSTIFIED FAT RESEARCH BUDGETS AS A WAY TO KEEP PACE WITH THE SOVIET UNION OVERALL THE REPORT SAID THE US SHOULD STRIVE TO REMAIN AMONG THE WORLD LEADERS IN ALL MAJOR AREAS OF SCIENCE AND BE NO 1 IN A SELECTED NUMBER OF FIELDS THE US SHOULD TRY TO DOMINATE THOSE SCIENTIFIC FIELDS THAT ARE IMPORTANT TO SUCH R&DINTENSIVE INDUSTRIES AS MICROELECTRONICS AND BIOTECHNOLOGY THE REPORT SAID IN AREAS OF APPLIED TECHNOLOGY THE US SHOULD TRY TO LEAD THOSE AREAS THAT PROMISE TO HAVE A MAJOR AND CONTINUING IMPACT ON INDUSTRIAL AND ECONOMIC PERFORMANCE THE REPORT URGED THE EVALUATIONS BY THE INDEPENDENT BOARDS WOULD BE USED EITHER TO INCREASE OR CUT FUNDS IF THE US WERE JUDGED TO BE BEHIND IN AN AREA OF CRITICAL IMPORTANCE THE REPORT SAID THE GOVERNMENT COULD INCREASE FUNDING BUT IF THE US WERE SAFELY AHEAD IN AN AREA DEEMED TO HAVE LESS IMPORTANCE IT COULD CUT FUNDING RALPH GOMORY PRESIDENT OF THE ALFRED P SLOAN FOUNDATION AND AN AUTHOR OF THE REPORT SAID THE DECISION IN THE 1970S TO SCALE BACK FUNDING FOR A SUPERSONIC TRANSPORT WAS AN EXAMPLE OF HOW THE US COULD DECIDE THAT CUTBACKS WERE IN ORDER 9306220048 930622 REP ROSTENKOWSKI BACKS 25CENT RISE IN GAS TAX WASHINGTON WITH THE SENATE POISED TO VOTE ON A DEFICITREDUCTION PLAN THAT WOULD RAISE GASOLINE TAXES 43 CENTS A GALLON THE HOUSE'S TOP TAX WRITER REP DAN ROSTENKOWSKI REITERATED HIS SUPPORT FOR AN INCREASE OF AS MUCH AS 25 CENTS A GALLON THE ILLINOIS DEMOCRAT IN A SPEECH YESTERDAY TO HARVARD BUSINESS SCHOOL ALUMNI IN CHICAGO SAID GAS TAXES COULD GO UP SEVEN CENTS A GALLON SENATE DEMOCRATS SUGGESTED 43 I'D BE FOR RAISING GAS TAXES 25 CENTS A GALLON A SPOKESMAN FOR REP ROSTENKOWSKI CAUTIONED AGAINST READING LARGER MEANING INTO THE REMARK SAYING HE'S EXPRESSING A LONGHELD POINT OF VIEW AND IT SHOULD COME AS NO SURPRISE TO ANYONE THAT HE'D SAY THAT HOWEVER THE DECISION OF SENATE FINANCE COMMITTEE DEMOCRATS TO REPLACE PRESIDENT CLINTON'S PROPOSED BROADBASED ENERGY TAX WITH A HIGHER TAX ON TRANSPORTATION FUELS PUTS THE ISSUE ON THE TABLE AS PART OF PENDING LEGISLATION REP ROSTENKOWSKI AS CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE WOULD LEAD HOUSE NEGOTIATORS THIS SUMMER IN A CONFERENCE COMMITTEE WITH THE SENATE TO RESOLVE DIFFERENCES BETWEEN THE TWO CHAMBERS' BILLS THE BARGAINERS WILL BE UNDER PRESSURE TO FIND ADDITIONAL REVENUES OR SPENDING CUTS THE SENATE IS TO BEGIN DEBATING ITS VERSION OF MR CLINTON'S DEFICITREDUCTION PLAN TOMORROW AND DEMOCRATIC LEADERS HOPE TO FINISH BY THE WEEKEND 9306220047 930622 FED IS URGED TO ADDRESS RATES FOR SMALL BUSINESS WASHINGTON HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ CHARGED THAT THE FEDERAL RESERVE BOARD IS ENCOURAGING BANKS TO COLLUDE WITH PARALLEL PRICING POLICIES ON LOANS TO SMALL BUSINESS IN A LETTER TO FED CHAIRMAN ALAN GREENSPAN REP GONZALEZ SAID THAT ALL BANKS REPORT THE SAME PRIME RATE WHICH IS CURRENTLY 6 EVEN THOUGH THEY REGULARLY MAKE LOANS AT RATES ABOVE OR BELOW THE RATE THEY ADVERTISE FOR THEIR MOST CREDITWORTHY CUSTOMERS THE UNIFORM RATE REPORTING IS THREATENING OUR SMALL BUSINESSES AND HURTING OUR ECONOMY BY MAKING IT DIFFICULT FOR BORROWERS TO SHOP FOR THE BEST RATES THE TEXAS DEMOCRAT SAID LARGE COMPANIES OFTEN HAVE A CHOICE OF MEETING SHORTTERM CREDIT NEEDS BY BORROWING FROM A DOMESTIC BANK SELLING COMMERCIAL PAPER OR BORROWING ABROAD ALL AT LESS THAN THE PRIME RATE BUT SMALL COMPANIES DON'T FACE THE SAME RANGE OF ALTERNATIVES AND OFTEN END UP BORROWING AT HIGHER RATES THAT MOVE UP AND DOWN WITH THE PRIME RATE THE LETTER SAID REP GONZALEZ ASKED THE FED TO SUBMIT SUGGESTIONS FOR ENDING THIS KIND OF PRICE DISCRIMINATION IN THE COMMERCIAL BANK COMMERCIAL LENDING MARKET 9306220046 930622 TECHNOLOGY BRIEF WELLCOME PLC STOCK PRICE DECREASES 34 AS TEST OF FLOLAN IS HALTED WELLCOME PLC STOCK TUMBLED 34 IN LONDON AFTER THE BRITISH DRUG MAKER HALTED CLINICAL TESTS OF FLOLAN AN OLD DRUG THAT HAD SHOWED EARLY PROMISE IN TREATING SEVERE CONGESTIVE HEART FAILURE FLOLAN KNOWN GENERICALLY AS EPOPROSTENOL HAS BEEN USED FOR MORE THAN A DECADE IN KIDNEY DIALYSIS IN RECENT YEARS FLOLAN'S CAPACITY FOR EXPANDING BLOOD VESSELS ATTRACTED ATTENTION FROM HEART SPECIALISTS WHO USED IT TO CONTROL BLOOD PRESSURE IN PATIENTS AWAITING HEART TRANSPLANTS WELLCOME BEGAN TESTING FLOLAN IN COMBINATION WITH OTHER DRUGS IN PATIENTS WITH ADVANCED CASES OF CONGESTIVE HEART FAILURE CLINICAL TRIALS INVOLVING 450 PATIENTS IN THE PAST 18 MONTHS SHOWED THERE WAS NO EVIDENCE FAVORING FLOLAN WHEN COMBINED WITH TRADITIONAL DRUGS SUCH AS ACE INHIBITORS AND DIURETICS IF ANYTHING THE MORTALITY RATE WAS SLIGHTLY HIGHER IN THE GROUP WITH FLOLAN THAN WITHOUT SO THE TRIAL WAS STOPPED ACCORDING TO WELLCOME'S RESEARCH DIRECTOR TREVOR JONES WELLCOME SHARES FELL 25 PENCE TO 705 PENCE 1054 IN HEAVY TRADING ON LONDON'S STOCK EXCHANGE YESTERDAY 9306220045 930622 JUSTICES REJECT CIGARETTE FIRM'S ANTITRUST APPEAL RULING MAKES IT TOUGHER TO WIN SUITS CONTESTING RIVALS' DEEP PRICE CUTS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT REBUFFING AN ANTITRUST APPEAL BY CIGARETTE MAKER BROOKE GROUP LTD MADE IT TOUGHER TO WIN LAWSUITS ALLEGING THAT A COMPANY SLASHED PRICES TO HURT A COMPETITOR BY A 63 VOTE THE HIGH COURT REJECTED BROOKE'S PLEA TO REINSTATE A 150 MILLION AWARD IT WON IN A SUIT THAT CHARGED BROWN & WILLIAMSON TOBACCO CORP WITH USING UNFAIR PRICECUTTING TO TRY TO DRIVE BROOKE OUT OF THE MARKET FOR SOCALLED GENERIC CIGARETTES LAWYERS AND LOWERCOURT JUDGES WILL ALMOST CERTAINLY DEBATE THE MEANING OF YESTERDAY'S DENSE 33PAGE MAJORITY OPINION IN WHICH JUSTICE ANTHONY KENNEDY MIXED LEGAL AND ECONOMIC THEORY WITH A FACTUAL ANALYSIS OF CIGARETTEINDUSTRY BEHAVIOR BUT DESPITE THE OPINION'S COMPLEXITY THE BOTTOM LINE IS THAT JUSTICE KENNEDY AMPLIFIED THE ALREADY CONSIDERABLE SKEPTICISM IN LEGAL CIRCLES ABOUT SUITS ATTACKING DEEP DISCOUNTING WHICH IN THE SHORT RUN AT LEAST BENEFITS CONSUMERS BIG BUSINESS DIDN'T GET ALL IT WANTED FROM YESTERDAY'S RULING THE MAJORITY REJECTED THE ARGUMENT THAT IN A HIGHLY CONCENTRATED INDUSTRY SUCH AS CIGARETTES PRICECUTTING NEVER CAN WORK AS A MEANS OF MAIMING A COMPETITOR AND THEREFORE SHOULDN'T EVER BE ILLEGAL THERE MAY BE A SITUATION IN WHICH INDUSTRY GIANTS TACITLY COOPERATE FIRST TO REDUCE PRICES TO DISCIPLINE DISCOUNTERS AND THEN TO RAISE THEM TO RECOUP THEIR LOSSES JUSTICE KENNEDY WROTE BUT THE OVERWHELMING THRUST OF HIS OPINION WAS THAT THIS SORT OF SCHEME IS SO IMPLAUSIBLE THAT JURIES GENERALLY SHOULDN'T BE ALLOWED TO RULE FOR PLAINTIFFS WHO RELY ON IT THE SUPREME COURT CASE AROSE FROM BROOKE'S EFFORT IN 1980 TO SALVAGE ITS DWINDLING TOBACCO BUSINESS BY INTRODUCING A LINE OF LOWPRICE GENERIC CIGARETTES SOLD IN PLAIN BLACKANDWHITE PACKAGES THE STRATEGY SUCCEEDED FOR A TIME IN DISRUPTING A PATTERN OF ORDERLY PRICE INCREASES BY THE HALFDOZEN MAJOR COMPANIES THAT TRADITIONALLY HAVE DOMINATED THE CIGARETTE BUSINESS BROOKE FORMERLY KNOWN AS LIGGETT GROUP INC SIPHONED THOUSANDS OF SMOKERS FROM LARGER COMPETITORS ESPECIALLY FROM BROWN & WILLIAMSON A UNIT OF BRITAIN'S BA T INDUSTRIES PLC BROWN & WILLIAMSON RESPONDED BY COMING OUT WITH ITS OWN BLACKANDWHITE GENERIC BRAND AND BY OFFERING WHOLESALERS STEEPER VOLUMEBASED REBATES THAN THOSE AVAILABLE FROM BROOKE BROOKE SUBSEQUENTLY SUED BROWN & WILLIAMSON ALLEGING THAT BROWN WAS TRYING TO MAKE GENERIC CIGARETTES SO UNPROFITABLE THAT BROOKE WOULD BE FORCED TO LIMIT ITS DISCOUNTS IN THE LATE 1980S THE PRICE DIFFERENCE BETWEEN GENERICS AND HIGHEND SMOKES DID SHRINK AS PRICES IN BOTH MARKET SEGMENTS ROSE STEADILY IN 1990 A FEDERAL COURT JURY IN GREENSBORO NC AWARDED BROOKE NEARLY 50 MILLION WHICH WAS AUTOMATICALLY TRIPLED UNDER FEDERAL ANTITRUST LAW BUT THE TRIAL JUDGE THREW OUT THE VERDICT REJECTING BROOKE'S ALLEGATION THAT BROWN & WILLIAMSON SUSTAINED LOSSES ON GENERICS SO THAT IT COULD CRUSH BROOKE AND THEN RAISE CONSUMER PRICES TO RECOUP ITS LOSSES THERE WASN'T AN ECONOMICALLY PLAUSIBLE WAY FOR BROWN & WILLIAMSON TO RECOVER SUCH LOSSES THE TRIAL JUDGE SAID THE FEDERAL APPEALS COURT IN RICHMOND VA AFFIRMED THE RULING AS A MATTER OF ECONOMIC LOGIC IT CONCLUDED ONLY A MONOPOLIST OR A MEMBER OF AN ORGANIZED CARTEL COULD BENEFIT FROM CHARGING BELOWCOST PRICES TO PUNISH A RIVAL THE APPELLATE COURT SAID THAT IN INDUSTRIES SUCH AS CIGARETTES THAT HAVE A RELATIVELY SMALL NUMBER OF SIZABLE COMPETITORS ONE COMPANY CAN'T BE SURE THAT SUSTAINED BELOWCOST PRICING WILL SUCCEED IN DISCIPLINING A RIVAL BECAUSE OTHER MAJOR COMPETITORS RATHER THAN COOPERATING MAY CUT THEIR PRICES TO EXPAND THEIR SHARE OF THE MARKET IN HIS OPINION FOR THE HIGH COURT MAJORITY JUSTICE KENNEDY SAID THE APPEALS COURT WENT TOO FAR IN APPEARING TO LAY DOWN A CATEGORICAL RULE INSULATING COMPETITORS IN CONCENTRATED INDUSTRIES FROM CHARGES OF PREDATORY PRICECUTTING BUT THAT WAS ABOUT ALL THE SATISFACTION THAT SMALLER COMPANIES ALLEGING SUCH SCHEMES COULD DRAW FROM YESTERDAY'S RULING THE BROOKE SUIT HAD BEEN FILED UNDER A 1936 ANTITRUST LAW KNOWN AS THE ROBINSONPATMAN ACT WHICH PROHIBITS SELECTIVE PRICE REDUCTIONS WHOSE EFFECT MAY BE SUBSTANTIALLY TO LESSEN COMPETITION A LITERAL READING OF THE ROBINSONPATMAN STANDARD SEEMS EASIER TO MEET THAN THOSE OF OTHER FEDERAL ANTITRUST LAWS BUT THE MAJORITY ENDORSED RECENT ASSERTIONS BY SCHOLARS AND LOWERCOURT JUDGES THAT IN PRACTICE THERE OUGHT TO BE A SINGLE RULE FOR PREDATORYPRICING CASES THAT IS VERY DIFFICULT FOR PLAINTIFFS TO MEET JUSTICE KENNEDY OFFERED TWO ESSENTIAL JUSTIFICATIONS FOR SETTING THE PLAINTIFF'S HURDLE SO HIGH FIRST PREDATORYPRICING SCHEMES AREN'T LIKELY TO WORK AND THUS AREN'T A GREAT DANGER TO THE MARKETPLACE SECOND PRICE REDUCTIONS BY INDUSTRY HEAVYWEIGHTS GENERALLY BENEFIT CUSTOMERS EVEN IF THEY HURT SMALLER COMPANIES THE PURPOSE OF THE ANTITRUST LAWS JUSTICE KENNEDY STRESSED IS TO PROMOTE CONSUMER WELFARE NOT TO PROTECT SMALL COMPETITORS TO WIN A PREDATORYPRICING SUIT A PLAINTIFF MUST SHOW THAT THE DEFENDANT INTENDED TO STIFLE COMPETITION BY REDUCING PRICES BELOW ITS COSTS THE PLAINTIFF ALSO MUST PROVE THAT THE DEFENDANT HAD ECONOMICALLY PLAUSIBLE MEANS TO RECOUP ITS LOSSES BY LATER RAISING PRICES TO AN ARTIFICIALLY HIGH LEVEL AMONG THE DEVELOPMENTS THAT UNDERMINED BROOKE'S CASE ACCORDING TO JUSTICE KENNEDY WAS THE GROWTH IN OUTPUT OF GENERICS AFTER BROWN & WILLIAMSON'S PRICECUTTING IN ADDITION AS LIST PRICES ROSE FOR ALL CIGARETTES IN THE LATE 1980S ACTUAL PRICES FELL AS A RESULT OF COUPONS AND GIVEAWAYS JUSTICE KENNEDY EMPHASIZED JOINING THE MAJORITY WERE CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES SANDRA DAY O'CONNOR ANTONIN SCALIA DAVID SOUTER AND CLARENCE THOMAS JUSTICE JOHN PAUL STEVENS JOINED BY JUSTICES BYRON WHITE AND HARRY BLACKMUN DISSENTED JUSTICE STEVENS CONTESTED THE MAJORITY'S INTEPRETATION OF SEVERAL KEY PIECES OF EVIDENCE BUT MORE BROADLY HE ARGUED THAT THE MAJORITY HAD IMPROPERLY REQUIRED BROOKE TO PROVE A SUCCESSFUL PREDATORY SCHEME WHEREAS THE ROBINSONPATMAN ACT REQUIRES PROOF ONLY OF BEHAVIOR THAT MAY SQUELCH COMPETITION IN THE LONG RUN BROOKE'S LIGGETT GROUP TOBACCO DIVISION IS THE NATION'S SMALLEST AND WEAKEST CIGARETTE COMPANY WITH LESS THAN 3 OF THE US TOBACCO MARKET LIGGETT'S PROFIT FELL 43 LAST YEAR TO 526 MILLION ON SALES OF 605 MILLION BROOKE GROUP LTD VS BROWN & WILLIAMSON TOBACCO CORP IN OTHER ACTIONS YESTERDAY THE HIGH COURT DECLINED TO HEAR A CONSTITUTIONAL CHALLENGE TO NEW YORK STATE'S METHOD FOR CALCULATING THE TAX ON INCOME EARNED IN NEW YORK BY PEOPLE WHO LIVE ELSEWHERE TO DETERMINE THE TAX RATE TO BE APPLIED TO A NONRESIDENT'S NEW YORK INCOME THE STATE TAKES INTO ACCOUNT BOTH WHAT THE PERSON EARNED IN NEW YORK AND MONEY EARNED OUTSIDE OF THE STATE 9306220044 930622 BUSINESS BRIEF ROUSSEL UCLAF SA RHONEPOULENC TO SELL STAKE CAUSING TRADING SUSPENSION TRADING IN THE SHARES OF FRENCH PHARMACEUTICAL CONCERN ROUSSEL UCLAF SA WERE SUSPENDED AFTER CHEMICAL GROUP RHONEPOULENC SA SAID IT WOULD SELL ITS 35 STAKE IN ROUSSEL UCLAF IN A PUBLIC OFFERING RHONEPOULENC SAID THE DECISION WHICH WAS EXPECTED WAS MADE IN AGREEMENT WITH GERMAN CHEMICALS GROUP HOECHST AG WHICH OWNS A MAJORITY 545 STAKE IN ROUSSEL UCLAF ROUSSEL UCLAF SHARES CLOSED FRIDAY AT 575 FRANCS 102 UP 33 FRANCS THE SHARES WILL REMAIN SUSPENDED UNTIL THE SALE IS COMPLETED PROBABLY IN A FEW WEEKS SEPARATELY EDOUARD SAKIZ PRESIDENT OF ROUSSEL UCLAF SAID ITS CONTROVERSIAL ABORTION PILL PROBABLY WON'T BE AVAILABLE FOR USE IN THE US FOR YEARS IN AN INTERVIEW IN A FRENCH BUSINESS DAILY MR SAKIZ SAID THAT NO MAJOR US DRUG COMPANY SEEMS INTERESTED IN MAKING RU486 NO IMPORTANT LABORATORY IS READY TO TAKE THE RISK OF PUTTING THE ABORTION OPPONENTS ON ITS BACK HE WAS QUOTED AS SAYING 9306220043 930622 WHO'S NEWS BOEING AIDE TO GET MAJOR JOB AT UNITED TECHNOLOGIES UNIT BY JEFF COLE AND AMAL KUMAR NAJ STAFF REPORTERS OF THE WALL STREET JOURNAL UNITED TECHNOLOGIES CORP IS EXPECTED TO NAME A TOP BOEING CO EXECUTIVE AS HEAD OF THE COMMERCIALENGINE BUSINESS OF ITS TROUBLED JETENGINE UNIT THE BOEING EXECUTIVE JAMES JOHNSON WILL SUCCEED SELWIN BERSON WHO IS EXPECTED TO ANNOUNCE HIS RETIREMENT THE COMPANIES DECLINED TO CONFIRM THE EXECUTIVE CHANGES BUT ARE EXPECTED TO MAKE AN ANNOUNCEMENT AS EARLY AS TODAY AT SEATTLEBASED BOEING THE SURPRISE EXIT OF MR JOHNSON 51 YEARS OLD HAS LEFT THE COMPANY WITHOUT A LEADER TO DIRECTLY OVERSEE THE CRUCIAL EVERETT WASH OPERATION JUST AS IT IS GOING THROUGH A COMPLEX PRODUCTION SLOWDOWN BECAUSE OF SLACKENED DEMAND FROM WEAKENED AIRLINES AT UNITED TECHNOLOGIES HARTFORD CONN THE HIRE REFLECTS THE NEED FOR MAJOR CHANGE AT ITS PRATT & WHITNEY UNIT WHICH IS IN THE MIDST OF A COMPANYWIDE RESTRUCTURING PROGRAM IN THE FACE OF A SHARPLY SHRINKING DEFENSE BUSINESS LAST YEAR THE JETENGINE UNIT INCURRED A LOSS OF 500 MILLION AND UNITED TECHNOLOGIES IN AN EFFORT TO STEM LOSSES IS REDUCING ITS WORK FORCE AND CLOSING OR CONSOLIDATING ITS JETENGINE FACILITIES THE HIRING OF MR JOHNSON FROM BOEING A MAJOR CUSTOMER REFLECTS PRATT & WHITNEY'S EFFORTS TO REALIGN THE DIVISION TO FOCUS MORE ON COMMERCIAL PRODUCTS ITS COMMERCIALENGINE BUSINESS SUFFERS FROM HIGH COSTS ESPECIALLY IN COMPARISON WITH ITS ARCHRIVAL GENERAL ELECTRIC CO'S GE AIRCRAFT ENGINE UNIT AN INDUSTRY EXECUTIVE FAMILIAR WITH THE IMPENDING CHANGE AT PRATT & WHITNEY SAID THAT THE UNITED TECHNOLOGIES UNIT IS PLACING ITS FAITH AND TRUST ON THE COMMERCIAL SIDE OF THE BUSINESS AND NEEDS A PROVEN FORMULA WHILE MR JOHNSON MAY BRING THAT FROM BOEING MR BERSON THE CURRENT HEAD OF COMMERCIAL ENGINES AT PRATT & WHITNEY IS GIVEN HIGH MARKS FOR HIS CONTRIBUTIONS TO THE JETENGINE COMPANY AS VICE PRESIDENT AND GENERAL MANAGER OVER WIDEBODYJET OPERATIONS AT THE COMPANY'S SPRAWLING EVERETT OPERATIONS MR JOHNSON HAS OVERSEEN PRODUCTION OF HIGHLY PROFITABLE 747 JUMBO JETS HE HAD BEEN CONSIDERED BY SOME AT BOEING TO BE A CONTENDER FOR THE POST OF PRESIDENT OF THE PARENT COMPANY A JOB THAT WENT INSTEAD LAST YEAR TO PHILIP CONDIT IN THAT POST MR CONDIT IS EXPECTED TO EVENTUALLY SUCCEED FRANK SHRONTZ ON HIS RETIREMENT AS CHAIRMAN MR JOHNSON ALSO WAS PASSED OVER EARLIER THIS YEAR WHEN THE COMPANY NAMED RON B WOODARD AS EVENTUAL SUCCESSOR TO DEAN THORNTON PRESIDENT OF THE AIRPLANE DIVISION WHO IS EXPECTED TO RETIRE SOON MR JOHNSON'S DEPARTURE HAS TOUCHED OFF WIDESPREAD SPECULATION ABOUT WHO MIGHT GET HIS JOB ONE LIKELY CANDIDATE TO REPLACE HIM AT EVERETT IS NEIL STANDAL THE SECONDINCOMMAND OF THE COMPANY'S COSTLY NEW MODEL 777 WIDEBODY JET MR STANDAL PREVIOUSLY SERVED AS SECOND IN COMMAND FOR ALL EVERETT OPERATIONS ANOTHER CANDIDATE IS JOHN HAYHURST WHO IS OVERSEEING BOEING'S STUDIES OF ASSEMBLING AN INTERNATIONAL CONSORTIUM TO DEVELOP A SUPERJUMBO JET CARRYING 600 TO 800 PASSENGERS HOWEVER THAT PROJECT ALSO IS CONSIDERED A HIGH PRIORITY AT BOEING YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE UNITED TECHNOLOGIES CLOSED AT 54625 UP 75 CENTS BOEING FELL 25 CENTS TO 3850 9306220042 930622 INTERNATIONAL BRIEF THORN EMI PLC COMPANY SELLS LIGHTING UNIT TO AFFILIATE OF INVESTCORP THORN EMI PLC OF BRITAIN SOLD ITS LIGHTING DIVISION TO A COMPANY CONTROLLED BY INVESTCORP FOR 162 MILLION 2423 MILLION THORN CHAIRMAN SIR COLIN SOUTHGATE SAID THE SALE IS ANOTHER STEP IN THORN EMI'S STRATEGY OF FOCUSING ON BUSINESSES WITH WORLD LEADERSHIP POSITIONS NAMELY ITS MUSIC AND ELECTRONICEQUIPMENT RENTALS INTERESTS PROCEEDS FROM THE DISPOSAL WILL BE USED TO REDUCE BORROWINGS IN THE SHORT TERM AND TO INVEST IN THE DEVELOPMENT OF ITS CONTINUING BUSINESSES INVESTCORP IS A BAHRAINBASED INTERNATIONAL INVESTMENT COMPANY 9306220041 930622 PEACE IN THE BAYOUS CLOSING MILITARY BASE DOESN'T SOUND TAPS FOR ALEXANDRIA LA THE CITY FOUGHT THE PULLOUT BUT ALSO WOOED TENANTS FOR AIR FORCE'S PROPERTY A SURVIVAL GUIDE FOR OTHERS BY DANIEL PEARL STAFF REPORTER OF THE WALL STREET JOURNAL ALEXANDRIA LA HERE'S THE PRICE OF PEACE CLOSING A MILITARY BASE WOULD WIPE OUT ONETHIRD OF THE ECONOMY IN CHARLESTON SC CUT HOME VALUES IN HALF IN STATEN ISLAND NY AND LEAVE 30 OF ANNISTON ALA UNEMPLOYED OR SO THOSE CITIES SAY BUT PEOPLE HERE THINK OTHER COMMUNITIES ARE PLAYING TAPS TOO SOON THIS CENTRAL LOUISIANA CITY POP 50000 HAD BRACED FOR THE WORST TOO WHEN IN EARLY 1990 ENGLAND AIR FORCE BASE APPEARED ON A GOVERNMENT LIST FOR POSSIBLE CLOSING THE LOCAL ECONOMY WOULD BE SET BACK 15 YEARS ONE ECONOMIST WARNED AND NEARLY 6400 JOBS WOULD BE LOST RETAILERS FEARED SALES WOULD PLUMMET PROPERTY VALUES WERE SLASHED WHEN THE CLOSING WAS ANNOUNCED DEVELOPMENT STOPPED COLD HYSTERIA HOWEVER HAS GIVEN WAY TO SELFASSURANCE LIKE A PERSON SHAKEN TO HIS SENSES ALEXANDRIA'S BUSINESS LEADERS STARTED PREPARING FOR LIFE AFTER ENGLAND AIR FORCE BASE NEARLY A YEAR BEFORE LEARNING THAT THE FACILITY WOULD CLOSE THEY TOOK PAINS TO KEEP NORMALLY CONTENTIOUS POLITICIANS UNITED THEY APPLIED POLITICAL PRESSURE TO GAIN CONTROL OF THE BASE ITSELF AND THEY FORCED THEIR WAY THROUGH THE MILITARY BUREAUCRACY TO GET A MAJOR TENANT WORKING ON THE PROPERTY BEFORE IT EVEN CLOSED LAST DECEMBER A HUGE BOOST TO THE AREA'S MORALE TODAY HOUSING PRICES IN ALEXANDRIA ARE HIGHER THAN THEY WERE IN 1991 JOB GROWTH HAS REMAINED STEADY WITH 400 NET JOBS CREATED LAST YEAR AND HUNDREDS MORE ARE EXPECTED INSTEAD OF A DROP IN BUSINESS CITY OFFICIALS HAVE ENJOYED A 10 INCREASE IN SALESTAX REVENUE IN THE PAST TWO YEARS ROARK MUSIC SOLD MORE PIANOS IN 1992 THAN IT DID IN 1991 CAPLAN'S MEN'S STORE SOLD MORE SHIRTS AND JEANS AND TURPIN PONTIAC SOLD MORE CARS WE'RE ALL GRINNIN' SAYS THOMAS FOWLER CHIEF EXECUTIVE OF SECURITY FIRST NATIONAL BANK LOUISIANA INVESTORS HAD ENOUGH CONFIDENCE IN THE AREA TO OVERSUBSCRIBE THE ALEXANDRIABASED BANK'S 37 MILLION STOCK OFFERING LAST FALL MR FOWLER WHO ONE YEAR AGO STOOD TEARYEYED WATCHING THE LAST A10 THUNDERBOLTS FLY OFF NOW SAYS THE CLOSING MAY BE A BLESSING IN DISGUISE INDEED AS THE FEDERAL BASE CLOSURE AND REALIGNMENT COMMISSION PREPARES TO DETERMINE THIS MONTH WHICH BASES WILL GET THE AX THIS TIME AROUND ALEXANDRIA PROVIDES A POWERFUL LESSON A CITY CAN SURVIVE A BASE CLOSING AND EVEN PROSPER IF IT THROWS THE SAME ENERGY INTO REUSING THE BASE THAT IT PUT INTO TRYING TO KEEP IT OPEN A MILITARY BASE IS A FAIRLY STAGNANT FACILITY SAYS WILLIAM LAUBERNDS PRESIDENT OF THE NATIONAL ASSOCIATION OF INSTALLATION DEVELOPERS WHICH HELPS COMMUNITIES CONVERT CLOSED MILITARY BASES IF COMMUNITIES DO HOMEWORK AND HARD WORK HE SAYS THEY CAN NOT ONLY RECLAIM THE JOBS LOST BUT POSITION THEMSELVES TO BE VERY COMPETITIVE IN TERMS OF GROWTH OFTEN THOUGH COMMUNITIES SEEM TO SPUTTER AND STUMBLE BEFORE FINALLY REPLACING LOST MILITARY JOBS LARGELY BECAUSE OF INTERNAL SQUABBLING IN VICTOR VALLEY 60 MILES NORTHEAST OF LOS ANGELES THE SMALL CITY OF ADELANTO SUED ITS NEIGHBORS FOR CONTROL OF GEORGE AIR FORCE BASE AND CONGRESSMEN CHOSE UP SIDES AS THE AIR FORCE TRIES TO DECIDE WHAT TO DO JOBSTARVED VICTOR VALLEY HAS MISSED OUT ON A JAPAN AIR LINES CREWTRAINING CENTER AND A SPACERELATED THEME PARK ACCORDING TO PETER D'ERRICO DIRECTOR OF THE VICTOR VALLEY ECONOMIC DEVELOPMENT AUTHORITY THE COMMUNITY IS VERY DISCOURAGED HE SAYS IN OTHER CASES COMMUNITIES FOCUS ONLY ON KEEPING THE BASE OPEN INSTEAD OF PLANNING FOR THE WORST CHARLESTON SC BOOSTERS HAVE HIRED BIGNAME WASHINGTON LOBBYISTS TO ARGUE FOR THE CITY'S NAVAL BASE AND ARE WARNING THAT DEFEAT WOULD BE TANTAMOUNT TO A DEATH SENTENCE BUT BUSINESS PEOPLE WHO HAVE TALKED ABOUT USING THE BASE AS A CIVILIAN PORT SAY COMMUNITY LEADERS HAVE SPURNED THEM THERE'S A HERD MENTALITY THAT WE'VE ALL GOT TO STAND TOGETHER AND COMMUNICATE THE SAME MESSAGE SAYS JOHN HASSELL A FORMER ECONOMIC DEVELOPMENT OFFICIAL IN CHARLESTON ALEXANDRIA ITSELF ISN'T COMPLETELY OUT OF DANGER YET AROUND THE BASE WHICH ABUTS THE CITY BUSINESSES LIKE THE SOCRATES INTERNATIONAL NIGHTCLUB REMAIN SHUTTERED AND SOME OF THE PEOPLE WHOSE PAYCHECKS WERE SUPPORTED BY ENGLAND STILL MAY LEAVE TOWN SOME RESIDENTS MAINTAIN THE ECONOMY IS REALLY RIDING ON TEMPORARY CONSTRUCTION SPENDING BECAUSE THE LONGDELAYED BUILDING OF INTERSTATE 49 HAS REACHED CITY LIMITS IF THE PROMISED JOBS AT THE FORMER BASE NOW DUBBED ENGLAND INDUSTRIAL AIRPARK DON'T MATERIALIZE CONSUMER CONFIDENCE COULD STILL WILT AFTER ALL BUT CENTRAL LOUISIANA COULD EASILY HAVE DONE WORSE ALEXANDRIA A SLEEPY CITY CRISSCROSSED BY MUDDY BAYOUS AND SURROUNDED BY MILES OF COTTON AND CRAWFISH FARMS WAS HARDLY A MODEL OF CIVIC EFFICIENCY IN THE 1980S THENMAYOR JOHN K TILLIE SNYDER WON NOTORIETY BY TRYING TO RAISE CATFISH IN THE CITY SWIMMING POOL THEY DIED AND TOOLING AROUND TOWN IN A POLICE CAR EVEN AFTER REFORMERS TOOK CONTROL OF CITY HALL LOCAL GOVERNMENTS RARELY GOT ALONG ALEXANDRIA MAYOR NED RANDOLPH SAYS THE BUILDING OF A NEW BRIDGE BETWEEN ALEXANDRIA AND PINEVILLE WAS STALLED FOR EIGHT YEARS WHILE THE TWO CITIES AND THE COUNTY RAPIDES PARISH FOUGHT OVER THE STRUCTURE'S HEIGHT ENGLAND HAD BEEN AN ANCHOR TO THE COMMUNITY SINCE IT OPENED IN 1955 BEFORE CLOSING THE BASE EMPLOYED 3000 UNIFORMED PERSONNEL AND 1000 CIVILIANS IN ADDITION TO HANGARS AND BRICK MILITARY BUILDINGS THE 2600ACRE GROUNDS HAS NEARLY 600 HOUSING UNITS A GOLF COURSE AND A PICNIC AND RECREATION AREA WITH A POND SHAPED LIKE SNOOPY AND THERE ARE HUNDREDS OF ACRES OF UNDEVELOPED PINE AND OAK FOREST WHEN ENGLAND FIRST SHOWED UP ON A LIST OF BASES THAT COULD BE CLOSED LOCAL POLITICIANS AND BUSINESS LEADERS SHELVED THEIR RIVALRIES POOLING FUNDS AND CONTACT LISTS LOCAL LEADERS RALLIED 6000 PEOPLE FOUR TIMES MORE THAN COULD FIT INTO CITY HALL TO ARGUE FOR THE BASE AT THE FIRST FEDERAL HEARING BUT SOME BEGAN TO WONDER IF THE CITY WAS FIGHTING A BATTLE IT COULDN'T WIN THEY INCLUDED JAMES L MEYER A COURTLY ALEXANDRIA NATIVE WHO HAD JOINED THE AIR FORCE IN 1957 BUT WAS JUDGED TOO TALL TO FLY AND BECAME A CIVIL ENGINEER INSTEAD THAT GAVE HIM A BENT FOR PLANNING AND IN 1965 WHEN CHENNAULT AIR FORCE BASE IN NEARBY LAKE CHARLES WAS CLOSED HE URGED ALEXANDRIA BUSINESS LEADERS TO DRAW UP A CONTINGENCY PLAN FOR ENGLAND AIR FORCE BASE BUT MR MEYER WAS REBUFFED IN THE 1970S HE VISITED CHENNAULT AND WAS HORRIFIED TO SEE BOARDED WINDOWS AND UNMOWED GRASS THE BASE REMAINED VIRTUALLY EMPTY FOR MORE THAN A DECADE BY 1990 MR MEYER WAS PRESIDENT OF THE CENTRAL LOUISIANA CHAMBER OF COMMERCE THAT SUMMER HE HELPED TAKE A DELEGATION OF LOCAL BUSINESS AND GOVERNMENT LEADERS TO WASHINGTON TO TALK ABOUT ENGLAND AIR FORCE BASE ON THE SAME DAY AS IT TURNED OUT THAT IRAQ INVADED KUWAIT BUT ANY HOPES THAT SADDAM HUSSEIN HAD SAVED THE BASE EVAPORATED AS TOP DEFENSE OFFICIALS POLITELY EXPLAINED WHY SMALL SINGLEUSE FACILITIES LIKE ENGLAND WERE BECOMING OBSOLETE ON THE FLIGHT BACK TO ALEXANDRIA MR MEYER'S COLLEAGUES AGREED TO START PLANNING FOR AN AIR BASE WITHOUT THE AIR FORCE WITHIN WEEKS A COVERT PLAN B COMMITTEE WAS FORMED NOT WANTING TO UNDERCUT THE SAVE THE BASE EFFORT THE 19 MEMBERS KEPT A LOW PROFILE MEETING EARLY IN THE MORNING OVER DOUGHNUTS IN THE CHAMBER'S OFFICE AFTER STUDYING PAST BASE CLOSINGS MEMBERS DECIDED THEY HAD TO GET CONTROL OF THE WHOLE AIR BASE AND QUICKLY OTHERWISE ANY TIME ALEXANDRIA WANTED A PIECE OF LAND IT WOULD HAVE TO WAIT FOR THE AIR FORCE TO SHOP IT AROUND TO VARIOUS FEDERAL AGENCIES FIRST IMMEDIATELY BARRIERS SPRANG UP A SEARCH OF LAND RECORDS SHOWED THAT ALEXANDRIA LIKE MANY CITIES HAD DONATED LAND FOR THE AIR BASE WITHOUT REQUIRING THAT IT RETURN TO LOCAL HANDS IF THE AIR FORCE LEFT ALEXANDRIA WOULD NEED FEDERAL LEGISLATION TO GAIN ENGLAND BACK AND WHO WOULD ACTUALLY GET THE LAND MYRTLE BEACH SC DIDN'T CONFRONT THAT QUESTION UNTIL TOO LATE AND THE CITY FOUND ITSELF FIGHTING WITH THE COUNTY FOR CONTROL THE PLAN B COMMITTEE DECIDED TO CREATE AN AUTHORITY WITH MEMBERS APPOINTED BY THE PARISH AND CITY GOVERNMENTS BUT WHEN SOME CITY COUNCIL MEMBERS LEARNED ABOUT THE PLANS IN THE SPRING OF 1991 THEY WERE FURIOUS THE CITY ALONE THEY DEMANDED SHOULD DEVELOP THE BASE MR MEYER AND OTHERS SPENT THE NEXT TWO WEEKS IN PRIVATE MEETINGS PLEADING WITH CITY AND PARISH LEADERS TO GO ALONG THEY SUCCEEDED PARTLY BECAUSE WE WERE THE ONLY PEOPLE WHO HAD A PLAN READY RECALLS GARLAND LAWRENCE A LOCAL UTILITY EXECUTIVE INDEED BY NOW ENGLAND AIR FORCE BASE WAS ON THE DEFENSE DEPARTMENT'S PREFERRED LIST OF BASES TO CLOSE AND TIME WAS PRECIOUS WHILE POLITICAL LEADERS KEPT FIGHTING THE BASE CLOSING THE ENGLAND TRANSITION TEAM FORGED AHEAD THEY PUSHED A BILL THROUGH THE STATE LEGISLATURE WITHIN MONTHS TO CREATE AND FUND THE ENGLAND AUTHORITY THEY PRODDED THE AIR FORCE TO MAKE THE AUTHORITY THE BASE'S CARETAKER SO IT COULD MOVE INTO THE BASE COMMANDER'S OFFICE AND EARN FEES FOR MAINTAINING LAWNS AND BUILDINGS THEY HIRED A CONSULTING FIRM TO DRAFT A FORMAL REDEVELOPMENT PLAN EAGER TO AVOID POLITICAL BLOWUPS MR MEYER SOMETIMES WORKED THE TELEPHONE UNTIL MIDNIGHT MAKING SURE EVERY TRANSITION COMMITTEE MEMBER KNEW ABOUT EACH NEW DEVELOPMENT AT THE SAME TIME TO STAY MOTIVATED ALEXANDRIA'S BUSINESS LEADERS ASSEMBLED FOR A BREAKFAST MEETING TO HEAR HOW THE ECONOMY WOULD COLLAPSE IF THE BASE WASN'T REUSED SUCH PREDICTIONS WEREN'T HARD TO COME BY EVEN IF THEY WERE LESSTHANSCIENTIFIC FOR EXAMPLE THE AIR FORCE ITSELF HAD ESTIMATED EACH LOST DOLLAR OF SPENDING BY THE BASE WOULD TRANSLATE INTO 440 AFTER RIPPLING THROUGH THE ECONOMY AND SOME ALEXANDRIANS ARGUED THE MULTIPLIER WAS AS HIGH AS 550 BUT SOME PENTAGON ANALYSTS SAY THE MULTIPLIER FOR AIR BASES IS CLOSER TO 2 BECAUSE THE BASES PROCURE SUPPLIERS MOSTLY FROM OUTSIDE THE AREA PROVIDE THEIR OWN HOUSING AND SELL CLOTHES AND FOOD AT SUCH DISCOUNTS THAT SOLDIERS SOMETIMES BUY GOODS FOR THEIR CIVILIAN FRIENDS ALEXANDRIA'S EARLY START PAID OFF BECAUSE THE AIR FORCE UNDER PRESSURE FROM LOUISIANA'S CONGRESSIONAL LEADERS HAD AGREED TO HAND OVER THE BASE TO THE ENGLAND AUTHORITY ALEXANDRIA COULD START NEGOTIATING WITH TENANTS MONTHS BEFORE THE BASE CLOSED JB HUNT TRANSPORT SERVICE VISITED THE BASE IN THE FALL OF 1991 AND A YEAR LATER AGREED TO OPEN A TERMINAL AND DRIVER'S TRAINING SCHOOL WITH THE PROMISE OF 500 JOBS WHEN THE BASE CLOSED IN DECEMBER THE COMPANY WAS ALREADY SETTING UP SPACE ON A TAXIWAY FOR YELLOWTRIMMED TRUCKS TO PRACTICE BACKING UP TO LOADING DOCKS IN 1991 THE ENGLAND AUTHORITY ALSO PERSUADED THE ARMY TO CONSIDER THE BASE AS A PLACE TO FLY IN AND ASSEMBLE TROOPS FOR MANEUVERS HELD 10 TIMES A YEAR AT NEARBY FORT POLK ENGLAND EVENTUALLY BEAT OUT TWO RIVAL LOUISIANA AIR BASES FOR THE STAGING BASE BOOSTING PLANS FOR A 24HOUR CONTROL TOWER AND A CIVILIAN AIRFIELD THE ARMY WOULDN'T HAVE CONSIDERED ENGLAND IF THE AUTHORITY DIDN'T ALREADY HAVE A CLAIM ON THE BASE SAYS KAREN NOLAN A PROJECT MANAGER FOR THE ARMY THIS COMMUNITY WAS AMAZING THEY WERE WAY AHEAD OF THE BALLGAME SHE SAYS THERE WERE OTHER VICTORIES TOO WITH PLEADING AND MOUNTAINS OF PAPERWORK THE ENGLAND AUTHORITY WAS ABLE TO KEEP 20 MILLION WORTH OF MOVABLE EQUIPMENT ON THE BASE FOR FUTURE TENANTS FROM PICKUP TRUCKS TO THE BALLS AND PINS IN THE BOWLING ALLEY FOR GOOD MEASURE THE AIR FORCE THREW IN THE FIVE FIGHTER PLANES MOUNTED ON CONCRETE PEDESTALS AT THE AIRBASE ENTRANCE ENGLAND STILL FACES BUREAUCRATIC OBSTACLES THE PENTAGON NERVOUS ABOUT ENVIRONMENTAL LIABILITY HAS BEEN SLOW TO HAND OVER FORMER BASES TO COMMUNITIES IN THE MEANTIME IT IS GRANTING ONEYEAR LEASES FOR COMMUNITIES TO BRING IN TENANTS THE TROUBLE IS IT CAN TAKE A YEAR FOR A LEASE APPLICATION TO GO THROUGH SOME 200 STEPS IN THE AIR FORCE CHAIN OF COMMAND THE ENGLAND AUTHORITY SAYS IT IS AWAITING APPROVAL OF LEASES FOR 20 HOPEFUL TENANTS REPRESENTING 1300 JOBS INCLUDING A HOSPITAL A GOLF COURSE AND A CALIBRATIONTESTING FIRM THAT WOULD USE ELECTRONIC EQUIPMENT LEFT BEHIND BY THE AIR FORCE THE PROCEDURES CAN AND WILL BE STREAMLINED SAYS PAUL DEMPSEY WHO HEADS THE PENTAGON'S OFFICE OF ECONOMIC ADJUSTMENT BUT BUSINESS CONFIDENCE IS STILL HIGH GENERAL MILLS INC'S RED LOBSTER CHAIN JUST OPENED A RESTAURANT IN ALEXANDRIA AND KMART CORP IS SCOUTING LOCATIONS TO BUILD A SUPERSTORE MICHAEL O HADNOT WHO JUST ADDED A CONFERENCE ROOM TO HIS RAMADA INN INTENDS TO SPEND AN ADDITIONAL 2 MILLION TO ADD 150 ROOMS EVEN THOUGH THE BASE CLOSING ELIMINATED HIS CONTRACT TO HOUSE VISITING AIR FORCE STAFF THIS AREA HE SAYS WILL BE BETTER OFF WITH THE DEVELOPMENT THEY'RE DOING NOW THAN IF THEY HAD KEPT THE BASE INTACT 9306220040 930622 COMMODITIES SOYBEAN PRICES JUMP AGAIN AS RAINY WEATHER CONTINUES TO HAMPER MIDWEST PLANTING EFFORTS BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO US SOYBEAN PRICES JUMPED FOR THE FOURTH CONSECUTIVE TRADING SESSION AS RAINY WEATHER CONTINUED TO BOG DOWN PLANTING IN THE MIDWEST IN TRADING AT THE CHICAGO BOARD OF TRADE THE SOYBEAN CONTRACT FOR JULY DELIVERY ROCKETED 1525 CENTS A BUSHEL TO SETTLE AT 62050 A BUSHEL THE PRICE OF THE JULY CONTRACT HAS CLIMBED 3725 CENTS A BUSHEL OR 64 SINCE JUNE 15 SOYBEAN FUTURES CONTRACTS FOR DELIVERY IN NOVEMBER JANUARY MARCH AND MAY SET NEW LIFEOFCONTRACT HIGHS ALTHOUGH SOME MIDWEST FARMERS CAN SOW SOYBEANS INTO EARLY JULY SOME GRAIN ANALYSTS ARE ALREADY BEGINNING TO TRIM THEIR PLANTED ACREAGE ESTIMATES AND THUS THEIR HARVEST FORECASTS FOR THE US SOYBEAN CROP BILL BIEDERMANN VICE PRESIDENT OF RESEARCH AT ALLENDALE INC CRYSTAL LAKE ILL SAID HIS FIRM IS NOW PREDICTING A US SOYBEAN HARVEST THIS AUTUMN OF 185 BILLION BUSHELS WHICH WOULD BE DOWN ABOUT 16 FROM LAST YEAR'S HARVEST OF 220 BILLION BUSHELS BASED ON THIS FORECAST MR BIEDERMANN SAID IT IS POSSIBLE FOR THE PRICE OF THE NOVEMBER SOYBEAN FUTURES CONTRACT TO HIT 7 A BUSHEL THIS SUMMER HE WARNED THAT THE CONTRACT IN THE PAST HAS HAD TROUBLE RISING THROUGH THE 650 A BUSHEL LEVEL RICHARD A LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO SAID YESTERDAY THAT BASED ON CURRENT CONDITIONS HE EXPECTS A US SOYBEAN HARVEST OF 1975 BILLION BUSHELS THE RAINY SPRING HAS MADE PREDICTING THE SOYBEAN CROP PARTICULARLY DIFFICULT THE WET WEATHER AT FIRST PREVENTED MIDWEST FARMERS FROM SOWING SOME OF THEIR FIELDS TO CORN WHICH GENERALLY MUST BE PLANTED BY EARLY JUNE IN ORDER TO MATURE BY THE FIRST FALL FROST SOME FARMERS HAD PLANNED TO SHIFT THEIR UNPLANTED ACREAGE TO SOYBEANS WHICH HAVE A SHORTER GROWING SEASON THAN CORN NOW THE CONTINUING WET WEATHER SEEMS LIKELY TO ALSO CUT SOYBEAN ACREAGE BY A FEW MILLION ACRES THE WET WEATHER HAS ALREADY RENDERED OBSOLETE AN ACREAGE REPORT THAT THE AGRICULTURE DEPARTMENT HAS SLATED FOR RELEASE JUNE 30 THE REPORT WHICH IS BASED ON SURVEYS COMPLETED BY JUNE 1 WILL HAVE MISSED THE EFFECTS OF THE RAINY WEATHER SO FAR THIS MONTH THAT REPORT IS ALREADY MEANINGLESS SAID MR LOEWY OF AGRESOURCE THIS YEAR IS GOING TO BE TRICKY AFTER THE CLOSE OF TRADING YESTERDAY THE WEEKLY PLANTING REPORTS RELEASED BY SEVERAL MAJOR GRAIN STATES SHOWED THAT SOYBEAN FARMERS ARE MAKING SOME PROGRESS IN IOWA FOR EXAMPLE SOYBEAN FARMERS HAVE PLANTED ABOUT 80 OF THEIR INTENDED ACREAGE COMPARED WITH 60 THE TRAILING WEEK THE BIGGEST DELAYS CONTINUE TO BE IN A SWATH RUNNING THROUGH NEBRASKA SOUTH DAKOTA MINNESOTA IOWA AND WISCONSIN SOYBEAN FARMERS IN THESE STATES HAVE YET TO SOW ABOUT 20 OF THE ACREAGE THAT A MARCH 31 REPORT BY THE AGRICULTURE DEPARTMENT INDICATED WOULD GO INTO PRODUCTION NORMALLY SOYBEAN PLANTING IN THOSE STATES IS ESSENTIALLY COMPLETED BY THIS TIME BUT NORMALLY IOWA GETS ABOUT HALF THE RAIN IT HAS RECEIVED SINCE MAY 1 MANY IOWA TOWNS HAVE ALREADY REPORTED ABOUT FIVE INCHES OF PRECIPITATION SO FAR IN JUNE WHICH IS MORE THAN THEY USUALLY RECEIVE FOR THE ENTIRE MONTH SAID PETER LEAVITT EXECUTIVE VICE PRESIDENT OF WEATHER SERVICES CORP IN BEDFORD MASS THE RAINDELAYED PLANTING SEASON IS SETTING UP THE GRAIN INDUSTRY FOR A NERVOUS SUMMER THE CORN AND SOYBEANS THAT FARMERS HAVE MANAGED TO PLANT WILL LIKELY DEVELOP A SHALLOW ROOT SYSTEM BECAUSE THEY WON'T HAVE TO REACH DEEP INTO THE SOIL FOR MOISTURE THAT MAKES THESE PLANTS PARTICULARLY VULNERABLE TO ANY HOT AND DRY SPELL IN JULY AND AUGUST THESE ARE THE MONTHS WHEN REPRODUCTION HINGES ON THE AMOUNT OF MOISTURE IN 1983 FOR EXAMPLE THE COMBINATION OF A WET SPRING AND HOT SUMMER CAUSED US CORN YIELD AN ACRE TO PLUNGE 28 THE AVERAGE CASH PRICE OF CORN AT THE FARM GATE CLIMBED 26 TO 321 A BUSHEL A LEVEL THAT HASN'T BEEN EXCEEDED SINCE LITTLE WONDER THAT TRADERS ARE QUICK TO RESURRECT 1983 WHENEVER SPRING TURNS WETTERTHANNORMAL BUT WET SPRINGS TEND TO BE FOLLOWED BY WET SUMMERS ACCORDING TO MR LEAVITT AT WEATHER SERVICES CORP ONLY THREE OF THE 30 WETTEST SPRINGS IN THE US WERE FOLLOWED BY DRY SUMMERS THOSE THREE SUMMERS HOWEVER WERE AMONG THE DRIEST ON RECORD IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM PRICES WERE LOWER IN LACKLUSTER TRADING FOR MUCH OF THE DAY PRICES WERE WITHIN A NARROW RANGE IN A DIRECTIONLESS OIL MARKET BUT THEN THERE WAS A FLURRY OF SELLING IN LATE TRADING ON THE NEW YORK MERCANTILE EXCHANGE WHICH WAS SAID TO BE DUE IN PART TO TODAY'S EXPIRATION OF THE JULY CRUDE CONTRACT ALSO TRADERS SAID THERE WAS SOME TECHNICAL SELLING AFTER THE AUGUST CRUDE CONTRACT FAILED TO HOLD ABOVE THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 19 A BARREL WHATEVER THE REASON LIGHT LOWSULFUR CRUDE FOR JULY DELIVERY SETTLED FIVE CENTS LOWER AT 1862 A BARREL AND THE AUGUST CRUDE WAS DOWN SIX CENTS TO 1891 FUEL FUTURES ALSO WERE FRACTIONALLY LOWER AND NATURAL GAS FOR JULY DELIVERY FELL SIX CENTS TO 2195 A MILLION BRITISH THERMAL UNITS THE TROPICAL STORM WHICH PASSED THROUGH THE GULF OF MEXICO OVER THE WEEKEND DIDN'T DISRUPT PRODUCTION AND HAD LITTLE IMPACT ON THE OIL AND GAS MARKETS NEITHER DID A MEETING OF SENIOR IRAQ AND UNITED NATIONS REPRESENTATIVES IN GENEVA THE UN SECRETARYGENERAL BOUTROS BOUTROSGHALI MET WITH THE IRAQI DEPUTY PRIME MINISTER TARIQ AZIZ TO DISCUSS THE ECONOMIC SANCTIONS AGAINST IRAQ AND A POSSIBLE ONETIME SALE OF ITS OIL BUT AFTER THE MEETING MR BOUTROSGHALI SAID DIFFERENCES BETWEEN THE TWO SIDES REMAINED AND THAT FURTHER TALKS WOULD BE NECESSARY PRECIOUS METALS FUTURES PRICES ENDED WEAKER ACROSS THE BOARD IN MOSTLY TECHNICAL TRADING TRADERS SAID WHAT WE'RE SEEING RIGHT NOW IS MORE CONSOLIDATION SAID IAN MACDONALD SENIOR PRECIOUS METALS ANALYST WITH CREDIT SUISSE IN NEW YORK IT'S THE WRONG TIME OF YEAR TO HAVE A RALLY HE SAID ADDING INDUSTRIAL DEMAND TENDS TO WEAKEN IN EARLY SUMMER BUT TOWARD SEPTEMBER AND OCTOBER IT TAKES OFF AND HITS A PEAK FOR PRECIOUS METALS IN GENERAL ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY CLOSED 140 AN OUNCE LOWER AT 37110 SILVER FOR JULY DELIVERY SLIPPED 03 CENT TO 4285 AN OUNCE ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JULY DELIVERY FELL 1 TO 37860 AN OUNCE WHILE PALLADIUM FOR SEPTEMBER DELIVERY EDGED BACK 25 CENTS TO 12775 AN OUNCE SUGAR SUGAR FUTURES CONTINUED TO RETREAT AMID GROWING MARKET CONVICTION THAT OVERSUPPLIED CONDITIONS WILL PERSIST DESPITE THE RECENT ANNOUNCEMENTS FROM CUBA ABOUT MASSIVE PRODUCTION CUTBACKS AND TEMPORARILY SUSPENDED SHIPMENTS ON NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE THE ACTIVE OCTOBER SUGAR CONTRACTS FELL 043 CENT TO 1009 CENTS A POUND YESTERDAY THERE'S REALLY NOT BEEN A SENSE OF TIGHTNESS TO SUPPORT RECENT PRICES SAID SANDRA KAUL AN ANALYST WITH SHEARSON LEHMAN BROS TRADERS CONTINUE TO FOCUS ON SUPPLY PROBLEMS RATHER THAN ON THE IMPACT ON DEMAND OF THESE HIGHER PRICES THIS HAS BEEN A PROBLEM FOR SEVERAL YEARS IN THE SUGAR MARKET SHE SAID THE SHEARSON ANALYST PREDICTED THAT SUGAR FUTURES PRICES WILL CONTINUE TO ERODE TO NINE CENTS A POUND IN THE NEAR TERM A JUNE 4 ANNOUNCEMENT FROM HAVANA THAT IT WAS SUSPENDING RAW SUGAR SHIPMENTS TO OVERSEAS CUSTOMERS FOR UP TO 45 DAYS GAVE A SHORTLIVED BOOST TO SUGAR FUTURES PRICES PROPELLING THEM CLOSE TO THE 11CENTAPOUND RANGE BEFORE THE RECENT PRICE RETREAT MANY ANALYSTS THOUGHT THAT THE ANNOUNCEMENT WOULD LIFT PRICES LONGERTERM DEPENDING ON HOW QUICKLY RUSSIA AND OTHER AFFECTED CUSTOMERS OF THE CUBAN CROP SOUGHT SUPPLIES FROM OTHER MARKETS 9306220039 930622 WHAT'S NEWS BUSINESS AND FINANCE THE DOLLAR SURGED AGAINST THE YEN AND TOKYO STOCK PRICES PLUNGED IN THE WAKE OF THE JAPANESE PARLIAMENT'S VOTE OF NO CONFIDENCE IN THE RULING PARTY THE NIKKEI STOCK INDEX FELL 59211 POINTS OR 3 TO 1921243 THE BIGGEST DROP IN MORE THAN 10 MONTHS THE POLITICAL TUMULT IN JAPAN COULD SPELL MONTHS OF UNCERTAINTY AS WELL AS LOWER SHARE PRICES US STOCK AND BOND PRICES JUMPED BOOSTED BY THE DOLLAR'S RALLY THE DOW JONES INDUSTRIALS ROSE 1605 POINTS TO 351082 THE PRICE OF THE 30YEAR TREASURY BENCHMARK GAINED NEARLY 3/8 POINT THE YIELD FELL TO 678 ANTITRUST SUITS ALLEGING A COMPANY SLASHED PRICES TO HURT A COMPETITOR WILL BE TOUGHER TO WIN AFTER A SUPREME COURT RULING IN A CIGARETTE CASE THE JUSTICES REJECTED BROOKE GROUP'S PLEA TO REINSTATE AN AWARD IN A SUIT THAT CHARGED BROWN & WILLIAMSON TOBACCO WITH USING UNFAIR PRICECUTTING NATIONAL HEALTH LABS AGREED TO ACQUIRE DAMON FOR 258 MILLION IN CASH AND STOCK OR 16 A SHARE IN A MOVE THAT WOULD CREATE A GIANT MEDICAL TESTING LABORATORY CONCERN ONLY SLIGHTLY SMALLER THAN INDUSTRY LEADER SMITHKLINE BEECHAM'S LAB UNIT DAMON'S STOCK JUMPED 1875 OR 14 TO 1575 TIME WARNER IS EXAMINING OPTIONS TO LIMIT HOW MUCH MORE TIME STOCK SEAGRAM CAN BUY AMID CONCERNS THAT THE LIQUOR COMPANY'S INVESTMENT MIGHT TURN OUT TO BE UNFRIENDLY ACCORDING TO PEOPLE CLOSE TO TIME PROPERTY AND CASUALTY INSURERS WOULD HAVE TO MEET STRINGENT CAPITAL REQUIREMENTS UNDER A PLAN LIKELY TO BE ADOPTED BY INSURANCE REGULATORS GM PLANS TO MOVE SOME SMALLCAR PRODUCTION TO MICHIGAN FROM MEXICO PLEASING ITS US UNIONS AND PROPONENTS OF FREE TRADE WHILE DOING LITTLE HARM TO WORKERS AT THE MEXICAN PLANT WHICH IS SLATED TO GET A NEW CAR SOME STATES ARE FORCING COMPANIES TO SET UP WORKERSAFETY COMMITTEES TO REDUCE INJURY RATES WHILE THE FEDERAL GOVERNMENT WRESTLES WITH WHETHER TO CREATE A SIMILAR NATIONAL MANDATE SHORT INTEREST ON THE BIG BOARD ROSE 48 AT MIDJUNE TO A RECORD SURPASSING THE BILLIONSHARE MARK A SECOND TIME AMERICAN STOCK EXCHANGE SHORT INTEREST ROSE NEARLY 10 CALIFORNIA'S GOVERNOR REACHED A COMPROMISE WITH LEGISLATIVE LEADERS ON A 52 BILLION STATE BUDGET THE FCC IS LEANING TOWARD REQUIRING CABLE TELEVISION SYSTEMS TO CARRY THE SIGNALS OF LOCAL BROADCASTERS THAT MOSTLY AIR HOME SHOPPING PROGRAMS TAMBRANDS PLANS TO RAISE AD SPENDING 50 IN THE WAKE OF DECLINING MARKET SHARE AND ITS CEO'S OUSTER THE TAMPON MAKER'S STOCK SOARED 6125 OR 15 TO 4625 ON NEWS THE BOARD IS CONSIDERING SELLING THE FIRM BONDS LEHMAN BROTHERS TREASURY INDEX 520890 UP 2008 COMMODITIES OIL 1862 A BARREL OFF FIVE CENTS DOW JONES FUTURES INDEX 12049 OFF 036 SPOT INDEX 12029 OFF 075 DOLLAR 11060 YEN UP 085 16883 MARKS UP 00073 9306220038 930622 BUSINESS BRIEF QUANTUM CORP FISCAL FIRSTQUARTER PROFIT TO TRAIL ANALYSTS' ESTIMATES QUANTUM CORP SAID PROFIT IN THE FISCAL FIRST QUARTER WILL FALL BELOW ANALYSTS' ESTIMATES DUE TO PRICING PRESSURE THAT CONTINUES TO BATTER THE COMPUTER DISKDRIVE MARKET DESPITE STRONG CONSUMER DEMAND AND A RISE IN SHIPMENTS REVENUE WILL FALL BELOW THE 507 MILLION REPORTED FOR THE FOURTH QUARTER ENDED MARCH 31 WARNED WILLIAM J MILLER CHIEF EXECUTIVE GROSS MARGINS WILL FALL SUBSTANTIALLY BELOW THE 182 REALIZED IN THE FOURTH QUARTER HE ADDED ANALYSTS HAD FORECAST THAT THE MILPITAS CALIF COMPANY WOULD POST PROFIT IN THE RANGE OF 104 MILLION TO 195 MILLION OR 24 CENTS A SHARE TO 45 CENTS A SHARE FOR THE QUARTER ENDING JULY 4 IN LAST YEAR'S FIRST QUARTER QUANTUM EARNED 215 MILLION OR 47 CENTS A SHARE MR MILLER SAID QUANTUM EXPECTS PRESSURE ON GROSS MARGINS TO PERSIST INTO THE SEPTEMBER QUARTER WHILE THE INDUSTRY TRIES TO WORK OFF EXCESS INVENTORY HE SAID THE COMPANY PLANS TO HOLD EXPENSES DOWN TO BETWEEN 10 AND 12 OF SALES UNTIL THE INTENSE PRESSURE ON MARGINS ABATES 9306220037 930622 MARKETING & MEDIA FCC FAVORS REQUIRING CABLE SYSTEMS TO CARRY HOME SHOPPING BROADCASTS BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL COMMUNICATIONS COMMISSION IS LEANING TOWARD REQUIRING CABLE TELEVISION SYSTEMS TO CARRY THE SIGNALS OF LOCAL BROADCASTERS THAT MOSTLY AIR HOME SHOPPING PROGRAMS THE AGENCY IS EXPECTED AT ITS MEETING THURSDAY TO GIVE DOZENS OF HOME SHOPPING STATIONS THE SAME RIGHTS TO BE CARRIED ON CABLE SYSTEMS AS MORE TRADITIONAL BROADCASTERS ACCORDING TO COMMISSION OFFICIALS UNDER LAST YEAR'S CABLE TV REREGULATION LAW CABLE SYSTEMS GENERALLY MUST CARRY THE SIGNAL OF LOCAL BROADCASTERS WHO REQUEST TRANSMISSION IN CONSIDERING THAT LEGISLATION LAWMAKERS DEBATED WHETHER HOME SHOPPING STATIONS ARE IN THE PUBLIC INTEREST SEVERAL ARGUED THAT HOME SHOPPING IS IN EFFECT AN EXTENDED PROGRAMLENGTH COMMERCIAL AND SHOULDN'T USE SCARCE PUBLIC AIRWAVES CONGRESS IN PASSING THE BILL ORDERED THE FCC TO REVIEW THE STATUS OF HOME SHOPPING STATIONS DECIDE WHETHER SUCH PROGRAMMING IS IN THE PUBLIC INTEREST AND WHETHER CABLE STATIONS SHOULD BE REQUIRED TO CARRY IT THE EXPECTED RULING DELIGHTS BROADCASTERS BUT ANGERS THE CABLE INDUSTRY AND PUBLIC INTEREST ADVOCATES ANDREW JAY SCHWARTZMAN HEAD OF THE MEDIA ACCESS PROJECT A WASHINGTONBASED PUBLIC INTEREST LAW FIRM CONTENDED THAT THE AIRWAVES COULD BE PUT TO BETTER USE THE FCC HE SAID IS ABOUT TO REAFFIRM A REAGANERA DECISION DESPITE A NEW ADMINISTRATION THAT SUPPOSEDLY CARES ABOUT CHILDREN AND THE PUBLIC INTEREST IN DEREGULATING TELEVISION IN THE 1980S THE COMMISSION APPROVED NICHE FORMATS INCLUDING ALLFOREIGN LANGUAGE OR ALLSHOPPING PROGRAMMING AS LONG AS EACH STATION COMPLIED WITH FCC LICENSING STANDARDS THAT REQUIRE AIRING NEWS PUBLIC AFFAIRS AND CHILDREN'S PROGRAMMING NOTED JEFF BAUMANN EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL OF THE NATIONAL ASSOCIATION OF BROADCASTERS IN RECENT YEARS THE FCC HAS RENEWED LICENSES FOR STATIONS USING HOME SHOPPING FORMATS AND RENEWALS HAVE STOOD UP TO COURT CHALLENGES CABLE SYSTEMS MANY OF WHICH CARRY QVC THE CABLE INDUSTRY ALTERNATIVE TO OVERTHEAIR SHOPPING STATIONS DON'T WANT TO ADD HOME SHOPPING STATIONS A SPOKESWOMAN FOR THE NATIONAL CABLE TELEVISION ASSOCIATION SUGGESTED THAT POPULAR CABLE PROGRAMMING MIGHT BE DUMPED IN ORDER TO MAKE ROOM FOR HOME SHOPPING STATIONS WHY WOULD ANYONE WANT TO GRANT MUSTCARRY STATUS TO A HOME SHOPPING STATION THAT COULD BUMP CSPAN OR CNN WHICH PROVIDE NEWS AND PUBLIC AFFAIRS ON AN INDEPTH BASIS SHE ASKED IN A SEPARATE MATTER THE FCC IS EXPECTED TO SET ASIDE A NARROW PORTION OF THE AIRWAVES FOR ADVANCED MESSAGING SERVICES AND OTHER WIRELESS DATA SERVICES IN EFFECT THE NEW SERVICES WILL LET CUSTOMERS SEND AND RECEIVE MESSAGES INCLUDING ELECTRONIC MAIL 9306220036 930622 BUSINESS BRIEF CHRYSLER CORP OUTPUT OF VIPER SPORTS CAR IS SLOWED BY HOOD PROBLEMS CHRYSLER CORP SAID IT IS UNABLE TO REACH FULL PRODUCTION ON ITS VIPER SPORTS CAR BECAUSE OF FIT PROBLEMS IN ITS HOOD AND THAT IT EXPECTED TO CARRY OVER 2000 CUSTOMER ORDERS INTO THE NEXT MODEL YEAR THE VIPER A SPECIALTY CAR POWERED BY A V10 ENGINE THAT SELLS FOR NEARLY 55000 IS MADE AT A TINY FACTORY IN DETROIT THAT EMPLOYS JUST 65 WORKERS THE FACTORY HAD PLANNED TO REACH FULL PRODUCTION OF 20 CARS A DAY IN MAY BUT THAT DIDN'T HAPPEN THE PLANT IS CURRENTLY PRODUCING ABOUT EIGHT CARS A DAY CHRYSLER HAD PLANNED TO BUILD 3000 VIPERS THIS YEAR BUT COMPANY OFFICIALS SAID YESTERDAY THEY WOULD FALL SHORT HOWEVER THEY SAID IT WAS TOO EARLY TO SAY HOW MANY VIPERS WOULD BE PRODUCED CHRYSLER SAID IT HADN'T SHIPPED ANY CARS WITH DEFECTIVE HOODS NOR HAD IT RECEIVED ANY COMPLAINTS FROM CUSTOMERS 9306220035 930622 LEISURE & ARTS THE GALLERY ANCIENT TREASURES COAXED FROM THE SOVIET REPUBLICS BY MARGARET SCOTT IN THE MIDDLE OF THIS CENTER OF ANCIENT TEMPLES LEFTOVER FROM JAPAN'S IMPERIAL PAST CHUJI SUZUKI TAPS ON A DISPLAY CASE HOLDING A 25000YEAROLD STATUE OF VENUS SAID TO BE CARVED FROM THE TUSK OF A MAMMOTH BY ONE OF THE LONGFORGOTTEN NOMADS OF EURASIA SHE'S ONE OF THE MOST FAMOUS IN THE WORLD SAYS THE SLIGHT GOATEED CURATOR OF THE MUSEUM OF KYOTO I STILL CAN HARDLY BELIEVE SHE'S HERE THE DELICATE VENUS IS THE LEAST OF IT OVER FOUR LARGE ROOMS OF MR SUZUKI'S MUSEUM ARE SPREAD 183 OBJECTS IN GOLD AND BONE MARBLE AND PRECIOUS STONE THEY DEPICT THE ARC OF INFLUENCES FLOWING BETWEEN EAST AND WEST FOR CENTURIES SLOWLY FORMING PART OF THE ARTISTIC LANGUAGE OF GREEK ANTIQUITY THESE ANCIENT TREASURES GATHERED TOGETHER FOR THE FIRST AND VERY LIKELY THE LAST TIME HAVE BEEN COAXED FROM A PANOPLY OF MUSEUMS THROUGHOUT A FALLEN MODERNDAY EMPIRE THE SOVIET UNION MR SUZUKI AND KYOTO'S METROPOLITAN MUSEUM ARE UNTIL JULY 4 THE HAPPY IF SOMEWHAT BEWILDERED HOSTS OF THIS EXHIBITION THE COLLECTION WAS BORN OF THE OBSESSION OF GENEVABASED COLLECTOR GEORGE ORTIZ USHERED THROUGH THE TANGLED WEB OF ART AND POLITICS IN A DISINTEGRATING SOVIET UNION AND ONLY SURVIVES BECAUSE MR ORTIZ PUSHED IT THROUGH THAT PARENTHESIS OF TIME BEFORE TOO MANY RUPTURES GREW AMONG THE ONCESOVIET REPUBLICS THE SHOW ITSELF COMES FROM ANOTHER FALLEN EMPIRE ONE THAT LASTED MANY CENTURIES FROM HOMERIC DAYS UNTIL THE ROMANS AND OTHER MORE VIGOROUS PEOPLES FROM ASIA OVERRAN IT UNTIL THEN THE GREEKS WERE PUSHING HARD TO EXTEND THEIR HEGEMONY IN EVERY DIRECTION THEY COULD ASIA WAS NEXT DOOR AND GREEKS HAD THEIR EYE ON IT FROM THE START WHEN THEY ESTABLISHED TRADING PORTS AROUND THE BLACK SEA THERE FROM AROUND THE SIXTH CENTURY BC GREEK SEA TRADERS AND COLONIZERS CAME TO EXCHANGE GOLD AND SILVER OBJECTS FOR GRAIN WITH THE SMALL AND SOMETIMES ROVING BANDS OF SCYTHIANS IN TIME SMALL COLONIAL CITIES RICH IN TRADE AND CRAFTS SPROUTED ALONG THE COAST IT IS THE SCYTHIAN AND GREEK ART FROM THESE COLONIAL OUTPOSTS PARTICULARLY THE INTRICATE GOLDWORK OFTEN WITH SYNCRETIC MOTIFS MIXING THE DECORATIVE HERITAGES OF BOTH CULTURES THAT FORM THE CORE OF THE EXHIBIT HERE IN MOVING FROM ONE ROOM TO THE NEXT VISITORS ARE MEANT TO GRASP THE SWEEP OF THESE CROSS CURRENTS AND THE EXOTIC INFLUENCES THAT HELPED FORM THE CLASSICAL GREEK TRADITION IN THE MIDDLE OF ONE ROOM FOR INSTANCE THERE IS A SACRED VESSEL IN THE SHAPE OF A GOLD HELMET FROM ABOUT 350 BC IT IS COVERED WITH A SCYTHIAN MARTIAL SCENE CARVED IN RELIEF SHOWING WARRIORS WITH FLOWING HAIR AND DRAWN SWORDS THIS HELMET THE MOST RECENT FIND IN THE SHOW WAS EXCAVATED IN 1988 ON THE BLACK SEA'S NORTHERN SHORE IN WHAT IS NOW UKRAINE NO ONE KNOWS WHETHER IT WAS MADE BY A GREEK CRAFTSMAN PERHAPS WORKING IN THE COLONIES AND INTEGRATING SCYTHIAN INFLUENCES OR BY A SCYTHIAN TRAINED BY GREEKS NEARBY STANDS A LARGE ORNAMENTAL GOLD COMB ONE OF THE FINEST EXAMPLES OF FOURTHCENTURY BC GREEK CRAFTSMANSHIP ALSO EXCAVATED NORTH OF THE BLACK SEA IT IS PART OF A LARGE GROUP OF OBJECTS THOUGHT TO BE MADE IN GREECE THEN EXPORTED TO THE COLONIES ATTACHED TO ONE WALL IS A LARGE FRAGMENT FROM A MARBLE SCULPTURE OF A MALE NUDE STANDING BY A GREEK COLUMN IT WAS FOUND ON THE CRIMEAN PENINSULA WHERE BY THE FOURTH CENTURY BC A VIBRANT GREEK COLONY CALLED PANTICAPAEUM HAD RISEN WHAT WE SEE IN THIS SCYTHIANGREEK ART IS THAT THIS AREA OF EURASIA WAS TO THE GREEK WORLD WHAT THE SILK ROAD BECAME IN THE ROMAN WORLD SAYS TAKASHI SEKI AN ESTEEMED JAPANESE CLASSICAL GREEK ARCHAEOLOGIST WHO SERVED AS AN ADVISER TO THE EXHIBITION AND WHO OVERSAW THE CATALOG THE SILK ROAD ANALOGY HE SAYS HELPS JAPANESE MUSEUMGOERS GRASP THE COLLECTION'S SIGNIFICANCE HE EMPLOYS OTHER SIMILAR PROMPTS AND HAS SIMPLIFIED SOME OF THE ORIGINAL HISTORICAL CLASSIFICATIONS IN ORDER TO MAKE THE EXHIBIT MORE READILY UNDERSTANDABLE TO A JAPANESE AUDIENCE BUT HOW DID THIS ASSEMBLAGE MUCH OF WHICH HAS NEVER TRAVELED BEFORE WIND UP IN KYOTO THE SHORT ANSWER IS WE SAID YES WHEN THE EXHIBITION WAS OFFERED AROUND AND NOBODY ELSE DID MR SUZUKI SAYS THE LONG ANSWER HE ADDS STARTS WITH MR ORTIZ THE SON OF A WEALTHY BOLIVIAN DIPLOMAT MR ORTIZ SPENT SOME TIME AT HARVARD WAS A MARXIST IN PARIS FOR A WHILE AND THEN AT 22 HAD AN EPIPHANY WHEN HE DISCOVERED CLASSICAL GREEK ART HE'S BEEN INVESTING HIS FAMILY FORTUNE AND COLLECTING ART EVER SINCE NOW A GARRULOUS WELLHEELED AESTHETE OF 66 HE HAS FOR DECADES BEEN COLLECTING ANTIQUITIES AND CONTACTS IN SOVIET MUSEUMS IT WAS IN 1988 THAT THE TWO STRANDS CAME TOGETHER HE EXPLAINS BY TELEPHONE FROM GENEVA BACK THEN MR ORTIZ AND THE SOVIET MINISTRY OF CULTURE DEVISED A GRAND EXCHANGE MR ORTIZ'S PRIVATE COLLECTION OF SOME 280 PIECES RANGING FROM THE NEOLITHIC TO THE BYZANTINE WOULD TRAVEL TO THE HERMITAGE IN ST PETERSBURG AND THE PUSHKIN MUSEUM IN MOSCOW IN RETURN MR ORTIZ WOULD BE ALLOWED TO PICK HIS DREAM LIST OF ANTIQUITIES FOR DISPLAY IN TWO SITES ABROAD MY IDEA WAS TO GET THE VERY BEST OF THE ANCIENT CULTURES OF EURASIA HE SAYS SO I REFUSED TO LIMIT MYSELF TO PIECES FROM HERMITAGE AND THE PUSHKIN HE KNEW EXACTLY WHAT HE WANTED FROM THE SOVIET COLLECTIONS IN THE END AFTER TRIPS TO THE OUTER REACHES OF THE SOVIET LANDS AND TOUGH HAGGLING WITH BUREAUCRATS MR ORTIZ GOT MOST OF IT INEVITABLY I WAS TOLD NO YOU CAN'T HAVE THAT ONE IT'S TOO IMPORTANT CHOOSE SOMETHING ELSE' HE SAYS BUT I JUST KEPT AT IT THROUGH THE COUP THROUGH THE BREAKUP THROUGH THE FIGHTS BETWEEN THE REPUBLICS HE PULLED TOGETHER RECENTLY EXCAVATED PIECES FROM A MUSEUM IN UKRAINE CLASSICS FROM THE CZARIST COLLECTION OF EURASIAN ART STARTED BY PETER THE GREAT AND RARELY SEEN ITEMS FROM MUSEUMS IN MOLDOVA UZBEKISTAN AND TAJIKISTAN MR ORTIZ ARRANGED FOR THE FIRST SHOWING IN ZURICH THEN I OFFERED IT TO SOME BIGNAME PLACES IN THE STATES BUT THEY DIDN'T BELIEVE I COULD PULL IT OFF AND BACKED AWAY HE SAYS HENCE UNEXPECTEDLY AND IN RATHER HURRIED FASHION THE EXHIBIT MADE ITS WAY TO KYOTO WHEN MR SUZUKI SAW THE CATALOG FOR THE JAN 29MAY 2 ZURICH EXHIBITION HE IMMEDIATELY UNDERSTOOD ITS IMPORTANCE BUT THE TIMING WAS ALL WRONG HE WOULD HAVE ONLY SEVEN MONTHS TO ARRANGE THE TRANSPORTATION AND EXHIBITION OF THE 183 PIECES NONETHELESS HE APPROACHED MR SEKI WITH THE IDEA WHEN I SAW WHAT HE HAD I WAS ASTOUNDED I THOUGHT THIS MUST COME TO JAPAN' SAYS MR SEKI CONVENIENTLY MR SEKI DID HIS TRAINING IN GERMANY AND IS FLUENT IN GERMAN HE AGREED TO DO A RAPID TRANSLATION OF THE ZURICH CATALOG ONE CHANGE MADE IN KYOTO WAS IN THE TITLE IT'S CALLED PRECIOUS TREASURES FROM RUSSIA THE BRILLIANCE OF EURASIA IN KYOTO WHILE IN ZURICH IT WAS TITLED FROM THE TREASURIES OF EURASIA MESSRS SEKI AND SUZUKI WANTED TO CONVEY IN THE TITLE A SENSE OF WHERE THE OBJECTS ARE NORMALLY HOUSED THE SOVIET UNION'S SUCCESSOR STATES SINCE THE JAPANESE WORD FOR RUSSIA IS GEOGRAPHICALLY VAGUE IT WAS MADE TO STAND FOR ITSELF AS WELL AS ALL THE OTHER REPUBLICS THAT CONTRIBUTED PIECES TO THE SHOW THIS DIDN'T GO OVER WELL WITH SOME PEOPLE IN THE DELEGATION FROM THE VARIOUS REPUBLICS OF THE FORMER SOVIET UNION WHO WERE INVITED TO KYOTO FOR THE JUNE 7 OPENING I CAN SEE WHY THERE WILL NEVER BE AN EXHIBIT LIKE THIS AGAIN SAYS MR SUZUKI MS SCOTT IS A TOKYOBASED WRITER 9306220034 930622 FINANCING BUSINESS POUGHKEEPSIE SAVINGS BANK POUGHKEEPSIE SAVINGS BANK POUGHKEEPSIE NY SAID IT COMPLETED A RIGHTS OFFERING GENERATING NET PROCEEDS OF ABOUT 198 MILLION THE BANK SOLD 85 MILLION SHARES AS PART OF A PLAN TO MEET OFFICE OF THRIFT SUPERVISION CAPITAL REQUIREMENTS SHAREHOLDERS RECEIVED RIGHTS TO BUY ONE SHARE OF COMMON FOR 250 IN NATIONAL OVERTHECOUNTER TRADING POUGHKEEPSIE SAVINGS BANK SHARES CLOSED AT 26875 A SHARE UP 125 CENTS 9306220033 930622 CORRECTIONS & AMPLIFICATIONS GRAND CASINOS INC SAID IT DIDN'T APPLY FOR A RIVERBOAT CASINO LICENSE IN LOUISIANA AN ARTICLE YESTERDAY INCORRECTLY INDICATED THE COMPANY WAS DENIED SUCH A LICENSE 9306220032 930622 TIME WARNER CONCERNED ABOUT MOVE BY SEAGRAM IS SAID TO REVIEW OPTIONS BY LAURA LANDRO AND JOHNNIE L ROBERTS STAFF REPORTERS OF THE WALL STREET JOURNAL TIME WARNER INC CONCERNED THAT SEAGRAM CO'S PLAN TO BUY A STAKE OF AS MUCH AS 15 MIGHT TURN OUT TO BE UNFRIENDLY IS EXAMINING OPTIONS THAT MAY INCLUDE SEEKING A STANDSTILL AGREEMENT OR CONSIDERING SOME FORM OF POISON PILL ACCORDING TO PEOPLE CLOSE TO THE COMPANY THE PEOPLE CLOSE TO TIME WARNER SAID THE COMPANY'S MAIN OUTSIDE COUNSEL LAW FIRM CRAVATH SWAIN & MOORE IS STUDYING POTENTIAL RESPONSES TO SEAGRAM WHICH LAST MONTH ACQUIRED A 57 STAKE AND SAID IT WOULD BUY AS MUCH AS 15 SEAGRAM A MONTREAL PRODUCER AND MARKETER OF DISTILLED SPIRITS CHARACTERIZED THE INVESTMENT AS FRIENDLY AND SAID IT SUPPORTS TIME WARNER MANAGEMENT SEAGRAM HAS GIVEN NO INDICATION THAT IT PLANS TO GO BEYOND A 15 STAKE OR SEEK BOARD REPRESENTATION FOR NOW A TIME WARNER SPOKESMAN SAID THE COMPANY HAS MADE NO FORMAL ASSIGNMENT TO CRAVATH BUT ADDED THAT HE WASN'T IN A POSITION TO KNOW WHAT CRAVATH WAS WORKING ON FOR TIME WARNER ALAN STEPHENSON THE CRAVATH PARTNER RESPONSIBLE FOR THE STUDY DIDN'T RETURN TELEPHONE CALLS A SEAGRAM SPOKESMAN SAID HE HAD NO KNOWLEDGE OF TIME WARNER'S ACTIVITIES AND DECLINED TO COMMENT TIME WARNER INSIDERS PLAYED DOWN THE COMPANY'S CONCERN OVER THE SEAGRAM INVESTMENT YOU COULD EITHER APPROACH THIS BY BEING FRIENDLY OR HOSTILE TOWARD THEM OR STAYING IN THE MIDDLE AS WE HAVE BEEN DOING SAID ONE PERSON CLOSE TO THE COMPANY AS FOR STUDYING DEFENSIVE OPTIONS HE SAID THAT'S NORMAL COURSE OF BUSINESS WE'D BE CRAZY NOT TO KNOW WHAT OUR OPTIONS ARE IN THIS SITUATION BUT THERE'S NO SENSE OF URGENCY OR PANIC AND WE DON'T FEEL PARTICULARLY VULNERABLE SEAGRAM'S INTENTIONS AND TIME WARNER'S RESPONSE TO ITS NEW SHAREHOLDER HAVE BEEN THE SUBJECT OF CONSIDERABLE INTEREST ON WALL STREET AND IN HOLLYWOOD TIME AND SEAGRAM INSIDERS SAY TIME WARNER CHAIRMAN AND CHIEF EXECUTIVE GERALD LEVIN RECENTLY HAD A CORDIAL TELEPHONE CONVERSATION WITH SEAGRAM PRESIDENT EDGAR BRONFMAN JR BUT EXTENDED NO FORMAL INVITATION TO MEET WITH HIM AS MANY HAD EXPECTED GIVEN THE SIZE OF THE SEAGRAM INVESTMENT MR BRONFMAN'S INTENSE INTEREST IN THE MOVIE BUSINESS AND HIS OWN PUBLIC STATEMENTS ABOUT THE BRIGHT FUTURE OF THAT INDUSTRY HAVE LED MANY TO BELIEVE THAT HE WILL SEEK A MORE ACTIVE ROLE AT TIME WARNER INCLUDING A BOARD SEAT AND TIME WARNER OFFICIALS SAY THEY DON'T SEE THE 38YEAROLD MR BRONFMAN WHO HAS DABBLED IN MOVIE PRODUCTION AND INHERITED HIS JOB AT THE FAMILY CONTROLLED SEAGRAM'S AS A SERIOUS THREAT TO MR LEVIN THERE HAS BEEN SOME SPECULATION ON WALL STREET THAT SEAGRAM MIGHT AGREE TO SOME KIND OF STANDSTILL AGREEMENT UNDER CERTAIN CIRCUMSTANCES FOR EXAMPLE SEAGRAM WHICH HAS SINCE 1981 HELD A 243 STAKE IN CHEMICAL MAKER DUPONT CO AGREED NOT TO ACQUIRE MORE THAN A 25 STAKE IN DUPONT UNTIL 1999 ONE SCENARIO SUGGESTED BY WALL STREET EXECUTIVES IS THAT SEAGRAM MIGHT BE INTERESTED IN BUYING THE REST OF ITS PLANNED INVESTMENT DIRECTLY FROM TIME WARNER RATHER THAN IN THE OPEN MARKET WHERE IT BOUGHT THE CURRENT 57 STAKE FOR ABOUT 700 MILLION BASED ON THE CURRENT STOCK PRICE SUCH A MOVE COULD BRING ABOUT 13 BILLION DIRECTLY INTO TIME WARNER'S COFFERS TO HELP PAY DOWN ITS DEBT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING TIME WARNER ROSE 50 CENTS TO 3775 AND SEAGRAM CLIMBED 50 CENTS TO 2750 TIME WARNER RECENTLY SIGNED AN AGREEMENT WITH U S WEST CO TO INVEST 25 BILLION IN A SUBSIDIARY TIME WARNER ENTERTAINMENT IN RETURN FOR A 125 STAKE IN THE UNIT IT WILL USE SOME OF THOSE PROCEEDS TO PAY DOWN DEBT SEAGRAM LAST YEAR LOOKED AT INVESTING DIRECTLY IN THAT UNIT TOO AS A STRATEGIC PARTNER WITH TIME WARNER BUT DECIDED IT WAS MORE INTERESTED IN OWNING STOCK IN THE COMPANY ITSELF SEAGRAM HAS SAID IT APPROVES OF THE U S WEST INVESTMENT THE IDEA OF INSTITUTING A POISON PILL THE ANTITAKEOVER DEVICE WIDELY USED IN THE 1980S TO MAKE HOSTILE BIDS PROHIBITIVELY EXPENSIVE MIGHT BE FAR MORE TROUBLESOME FOR TIME WARNER THE COMPANY AGREED TO DROP ITS POISON PILL TWO YEARS AGO IN A PACT WITH UNITED SHAREHOLDERS ASSOCIATION A SHAREHOLDERRIGHTS GROUP THAT HAD SOUGHT TO PUT THE PILL ON THE BALLOT OF THE 1991 ANNUAL MEETING IN 1990 A PROPOSAL TO TERMINATE THE PILL OR PUT IT TO A SHAREHOLDER VOTE RECEIVED THE APPROVAL OF 43 OF THE SHARES VOTED AT THE ANNUAL MEETING THAT YEAR IN SCRAPPING THE PILL TIME WARNER SAID IN A STATEMENT THAT AFTER SEVERAL MONTHS OF CONSIDERATION THE BOARD HAS CONCLUDED THE PILL WAS A HOLDOVER FROM AN EARLIER TIME AND IN TODAY'S ENVIRONMENT IT NO LONGER SERVES A USEFUL PURPOSE EBEN SHAPIRO CONTRIBUTED TO THIS ARTICLE 9306220031 930622 CREDIT MARKETS MOST TREASURY PRICES RISE SLIGHTLY BUT 30YEAR POSTS DECENT GAIN CAUSING SURPRISE FOR TRADERS BY GENE COLTER AND JOHN HUGHES STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK THE PRICES OF MOST TREASURY SECURITIES ROSE SLIGHTLY YESTERDAY DURING LIGHT TRADING BUT THE 30YEAR BOND POSTED A DECENT GAIN WHICH SURPRISED SOME TRADERS THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 3/8 POINT OR NEARLY 375 FOR A BOND WITH A 1000 FACE VALUE TO 104 12/32 TO YIELD 678 DOWN FROM 680 ON FRIDAY THE 10YEAR NOTE ROSE LESS THAN 1/4 POINT TO 102 14/32 TO YIELD 591 DOWN FROM 593 ON FRIDAY PRICES OF MOST TREASURY SECURITIES CHANGED LITTLE FOR MUCH OF THE MORNING BUT THE PRICE OF THE 30YEAR BOND BEGAN TO RISE BY AFTERNOON MANY BOND TRADERS AND ANALYSTS WHO HAD EXPECTED A VERY QUIET TRADING DAY STRUGGLED TO FIND REASONS FOR THE JUMP IN PRICE OF THE 30YEAR TREASURY BOND THE CHANCES FOR CONGRESSIONAL ENACTMENT OF PRESIDENT CLINTON'S DEFICITREDUCTION BILL AND FOR A RISE IN THE DOLLAR AGAINST THE JAPANESE YEN WERE THE TWO REASONS MOST OFTEN GIVEN FOR THE BOND GAINS PEOPLE FEEL THERE'S GOING TO BE SOME KIND OF BUDGET AGREEMENT AND THAT OF COURSE WON'T BE NEGATIVE FOR THE MARKET SAID BERNARD JENSEN MANAGING DIRECTOR OF GOVERNMENT SECURITIES TRADING AT FUJI SECURITIES INC SOME OF THE GOOD FEELINGS ABOUT THE DEFICITREDUCTION BILL LIKELY WERE HEIGHTENED BY COMMENTS MADE YESTERDAY AFTERNOON BY TREASURY SECRETARY LLOYD BENTSEN MR BENTSEN HELD A LUNCHTIME NEWS CONFERENCE AT THE WHITE HOUSE WHERE HE TOLD REPORTERS THAT HE WAS CONFIDENT THAT CONGRESS WOULD REACH A CONSENSUS ON MR CLINTON'S DEFICITREDUCTION BILL HE ALSO SAID THAT FAILURE TO PASS SOME FORM OF THE BILL WOULD LEAD TO A JUMP IN INTEREST RATES LATER IN THE DAY MR CLINTON SAID DURING A RADIO INTERVIEW THAT THE US WAS IN GOOD SHAPE IN ITS EFFORTS TO CONTAIN INFLATION SUCH TALK MIGHT NORMALLY BOOST PRICES OF BONDS THE TREASURY SECURITIES THAT STAND TO GAIN OR LOSE THE MOST BY LONGTERM CHANGES IN THE ECONOMY BUT DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS POINTED OUT THAT BOTH MR BENTSEN AND MR CLINTON WERE OFFERING PREDICTABLE COMMENTS THAT SHOULDN'T HAVE MOVED THE MARKET AS FOR THE DOLLAR'S GAINS THE US CURRENCY CONTINUES TO CLIMB AGAINST THE JAPANESE YEN BECAUSE OF THE TROUBLES OF THAT COUNTRY'S RULING LIBERAL DEMOCRATIC PARTY WHICH IS IN DANGER OF LOSING ITS MAJORITY STANDING IN ELECTIONS TO BE HELD NEXT MONTH MARKET PARTICIPANTS THEORIZE THAT AS THE DOLLAR GAINS AGAINST THE YEN LARGE INVESTORS IN JAPAN WILL MOVE MONEY INTO THE US BOND MARKET BUT SUCH MOVEMENT DIDN'T OCCUR YESTERDAY TRADERS SAID MEAD BRIGGS HEAD OF RISK TRADING AT DEUTSCHE BANK GOVERNMENT SECURITIES INC SAID THE MARKET WAS SIMPLY PREDISPOSED YESTERDAY TO CURVE FLATTENING WHICH IN THIS CASE MEANT THAT LONGTERM RATES WOULD FALL THUS FLATTENING THE SOCALLED YIELD CURVE WHICH CHARTS THE DIFFERENCE BETWEEN SHORTTERM AND LONGTERM INTEREST RATES SUCH CURVEFLATTENING OFTEN TAKES PLACE IN WEEKS IN WHICH THE TREASURY DEPARTMENT SELLS NEW DEBT SECURITIES THE TREASURY WILL SELL 16 BILLION IN NEW TWOYEAR NOTES TODAY THEN FOLLOW UP TOMORROW WITH ANOTHER 11 BILLION IN FIVEYEAR NOTES BEFORE SUCH AUCTIONS DEALERS OFTEN SELL NOTES TO MAKE ROOM FOR THE NEW SUPPLY WHILE ALSO BUYING LONGERTERM ISSUES SUCH AS THE 30YEAR BOND THEY DO THIS BY SHORTING THE MARKET WHICH MEANS THEY SELL BORROWED SECURITIES THAT THEY HOPE TO REPLACE LATER AT THE AUCTION AT A LOWER PRICE THEREBY POCKETING THE DIFFERENCE IN WHENISSUED OR PREAUCTION TRADING THE TWOYEAR NOTE WAS YIELDING 417 DOWN FROM 418 LATE FRIDAY THE DROP IN YIELD INDICATES A SLIGHTLY BETTER DEMAND FOR THE ISSUE THE FIVEYEAR NOTE WAS QUOTED AT A YIELD OF 519 DOWN FROM 522 LATE FRIDAY BOTH ISSUES ARE DATED JUNE 24 THE 13WEEK BILLS MATURE SEPT 23 1993 AND THE 26WEEK BILLS MATURE DEC 23 1993 AS IF TAKING A CUE FROM THE CALENDAR THE CORPORATE DEBT MARKET SLIPPED INTO THE SUMMER DOLDRUMS YESTERDAYTHE FIRST OFFICIAL DAY OF SUMMER ONLY TWO NEW CORPORATE BOND ISSUES TOTALING 375 MILLION WERE PRICED DESPITE FALLING YIELDS IN THE TREASURY MARKET INVESTMENTGRADE CORPORATE BONDS ENDED FLAT TO AS MUCH AS 1/4 POINT HIGHER AMONG LONGER MATURITIES JUNK BONDS WERE LITTLE CHANGED THE TWO ISSUES PRICED YESTERDAY WERE A 250 MILLION OFFERING OF 22YEAR DEBENTURES BY SOUTHWESTERN BELL TELEPHONE CO A UNIT OF SOUTHWESTERN BELL CORP AND A 125 MILLION OFFERING OF FIRSTMORTGAGE BONDS BY PENNSYLVANIA POWER & LIGHT CO BOTH ISSUES MET STRONG INVESTOR DEMAND IN ADDITION SOME 200 MILLION IN FEDERAL AGENCY PAPER WAS PRICED SOUTHWESTERN BELL'S NONCALLABLE DEBENTURES WERE PRICED AT 9875 TO YIELD 7113 FOR A SPREAD OF 035 PERCENTAGE POINT ABOVE THE 30YEAR TREASURY BOND RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PENNSYLVANIA POWER'S BONDS WERE PRICED AT 9983 TO YIELD 603 FOR A SPREAD OF 049 PERCENTAGE POINT ABOVE THE SEVENYEAR TREASURY NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP SOME MARKET PARTICIPANTS HAD EXPECTED MORE DEALS TO BE PRICED IN THE WAKE OF DONALD TRUMP'S SUCCESSFUL TWOPART JUNK OFFERING LAST WEEK AND THE STRONG DEMAND MET BY THE PROVINCE OF ONTARIO IN ITS 2 BILLION GLOBAL OFFERING SOME HAVE SAID THAT IF YIELDS ON THE 30YEAR TREASURY FALL BELOW 675 MANY COMPANIES WILL RETURN TO THE NEWISSUE MARKET IF THAT HAPPENS BONDS MAY BE PRICED AT THE 8 BILLION WEEKLY PACE SEEN IN THE PAST TWO WEEKS OTHERS DISAGREE HOWEVER THE MARKET'S SO FULLY PRICED ON A SPREAD BASIS I'D RATHER BE IN TREASURYS RIGHT NOW SAID STEPHEN SMITH EXECUTIVE VICE PRESIDENT OF BRANDYWINE ASSET MANAGEMENT INC WILMINGTON DEL PRICES OF MUNICIPAL BONDS GENERALLY ENDED HIGHER WITH GAINS OF 1/8 OR 1/4 POINT CHICAGO'S 5625 EMERGENCY TELEPHONE SYSTEM REVENUE BONDS OF 2023 CLOSED 1/8 HIGHER AT 97 TO YIELD 582 THE LOS ANGELES DEPARTMENT OF WATER & POWER'S 5875 ELECTRIC PLANT REVENUE REFUNDING BONDS OF 2030 FINISHED 1/8 FIRMER AT 100 1/2 TO YIELD 583 BULLISH FUNDAMENTALS ARE SUPPORTING THE MUNI MARKET TRADERS SAY DEMAND REMAINS SOLID BEFORE MASSIVE BOND CALLS ON JULY 1 AND CONTINUING TALK ABOUT THE HIGHER FEDERAL INCOME TAXES PROPOSED BY MR CLINTON IS ALSO SEEN AS A BENEFIT FOR THE TAXEXEMPT MARKET IN THE NEXT FEW DAYS SIZABLE NOTE OFFERINGS ARE EXPECTED TO BE SOLD BY LOS ANGELES COUNTY THE NEW YORK CITY MUNICIPAL WATER FINANCE AUTHORITY AND RIVERSIDE COUNTY CALIF THE LARGEST COMING ISSUE IS LOS ANGELES COUNTY'S 185 BILLION OF FIXEDRATE VARIABLERATE AND FLEXIBLERATE TAX AND REVENUE ANTICIPATION NOTES THEY ARE DUE TO BE PRICED TODAY BY A LEHMAN BROTHERS GROUP MOODY'S INVESTORS SERVICE INC HAS ASSIGNED AN MIG1 RATING TO THE FIXEDRATE NOTES AND IT HAS RATED THE VARIABLERATE AND FLEXIBLERATE NOTES MIG1/VMIG1 STANDARD & POOR'S CORP GAVE THE NOTES AN SP1PLUS/A1PLUS RATING THE NOTES WILL BE DUE JUNE 30 1994 PRICES OF MORTGAGE SECURITIES ENDED HIGHER THE FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED THAT ITS STRIPPED MORTGAGEBACKED SECURITIES TRUST 231 WAS INCREASED FOR A FOURTH TIME TO 304 BILLION FROM 244 BILLION BY ITS UNDERWRITERS THE ISSUE AMOUNT WAS ORIGINALLY 800 MILLION AND IS BACKED BY THE AGENCY'S 30YEAR 75 SECURITIES THE TRUST CONTAINS STRIPPED SECURITIES WHICH ARE ISSUES SEPARATED INTO PRINCIPALONLY AND INTERESTONLY PORTIONS AMONG 7 AGENCY SECURITIES FOR JULY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 9/32 HIGHER AT 101 14/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES FINISHED 6/32 HIGHER AT 101 16/32 AND FANNIE MAE ISSUES ADVANCED 6/32 TO 101 11/32 PRIMARY MARKET PRODUCTION HAS BEEN WANING OF LATE ALTHOUGH SOURCES SAY SOME REAL ESTATE MORTGAGE INVESTMENT CONDUITS HAVE BEEN PREPARED BUT NOT ANNOUNCED RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR 9306220030 930622 COMPUTER SCIENCES DIVISION IS SUSPENDED FROM EPA BIDDING EL SEGUNDO CALIF COMPUTER SCIENCES CORP SAID IT WAS NOTIFIED BY THE ENVIRONMENTAL PROTECTION AGENCY THAT A DIVISION HAS BEEN SUSPENDED FROM BIDDING ON NEW FEDERAL CONTRACTS THE SUSPENSION HINGED ON ISSUES THAT SURFACED IN AN INTERNAL EPA AUDIT AND IN RELATED CONGRESSIONAL HEARINGS LAST YEAR AMONG THOSE ISSUES ARE ABOUT 8 MILLION IN CHARGES PARTIALLY INVOLVING EPA WAIVERS TO COMPUTER SCIENCES EMPLOYEES THE EPA HAD GRANTED AND THEN CANCELED WAIVERS FOR COMPUTERS SCIENCES WORKERS WHOSE EDUCATIONAL BACKGROUND DIDN'T MEET AGENCY REQUIREMENTS A COMPUTER SCIENCES SPOKESMAN SAID COMPUTER SCIENCES RELIES ON FEDERAL CONTRACTS FOR ABOUT HALF OF ITS REVENUE SALES IN THE FISCAL YEAR ENDED APRIL 2 WERE 25 BILLION AND EPA CONTRACTS MAKE UP ABOUT 10 OF THE COMPANY'S 125 BILLION IN FEDERAL REVENUE THE SPOKESMAN SAID THAT THE SUSPENSION WAS EFFECTIVE IMMEDIATELY AND INDEFINITELY BUT THAT THE COMPANY PLANNED TO MEET WITH EPA OFFICIALS AS EARLY AS THIS WEEK WE HOPE TO RESOLVE THIS QUICKLY HE SAID HARVEY PIPPEN DIRECTOR OF THE EPA'S OFFICE OF GRANTS AND DEBARMENT CONFIRMED THAT COMPUTER SCIENCES' APPLIED TECHNOLOGY DIVISION HAD BEEN SUSPENDED FROM FUTURE CONTRACTS PENDING COMPLETION OF AN ONGOING INVESTIGATION THE AGENCY SAID LAST YEAR THAT IT WAS CONTINUING TO LOOK INTO QUESTIONS RAISED IN THE EPA REPORT ABOUT POSSIBLY IMPROPER BILLING AND OTHER ACTIONS BY COMPUTER SCIENCES THE SUSPENSION DOESN'T AFFECT ANY OF THE COMPANY'S CURRENT EPA CONTRACTS AND THE COMPUTER SCIENCES SPOKESMAN SAID IT WOULDN'T HAVE ANY MATERIAL EFFECT ON THE COMPANY BECAUSE THE EPA ACTION IS BASED ON PREVIOUSLY REPORTED MATTERS THE SPOKESMAN SAID THE SUSPENSION DOESN'T HAVE FARREACHING ISSUES FOR THE COMPANY AND OTHER BUSINESS UNITS THE CONTRACT IN QUESTION IS A 347 MILLION FIVEYEAR CONTRACT RECEIVED BY COMPUTER SCIENCES IN SEPTEMBER 1990 FOR INFORMATION SERVICES FOR THE EPA THE EPA CANCELED THE FOURTH AND FIFTH YEARS OF THE CONTRACT LAST YEAR AFTER IT WAS CRITICIZED FOR MISMANAGEMENT AND OVERRELIANCE ON CONTRACTORS COMPUTER SCIENCES IS CONTINUING WORK ON THE REMAINDER OF THE CONTRACT 9306220029 930622 SHORT INTEREST ON BIG BOARD CLIMBS TO HIGH RISE WAS 48 AT MIDJUNE CHRYSLER AND DISNEY AGAIN HAD HEFTY TOTALS BY ROBERT J BRENNAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHORT INTEREST ON THE NEW YORK STOCK EXCHANGE ROSE 48 AT MIDJUNE TO A RECORD LEVEL SURPASSING THE BILLIONSHARE MARK FOR THE SECOND TIME SHORT INTEREST ON THE AMERICAN STOCK EXCHANGE ALSO HIT A RECORD UP NEARLY 10 FROM THE PRIOR MONTH THE BIG BOARD SHORT INTEREST LEVEL FIRST PASSED THE BILLIONSHARE MARK LAST DECEMBER WHEN IT REACHED 101 BILLION SHARES FOR THE RECENT MONTH THE TOTAL WAS 104 BILLION SHARES DESPITE HISTORIC LEVELS THOUGH SHORT INTEREST HAS BECOME DIFFICULT TO USE AS A TRUE SIGN OF INVESTOR SENTIMENT THAT'S BECAUSE MUCH OF IT IS ATTRIBUTABLE TO PROGRAM TRADING OF LARGE VOLUMES OF SECURITIES BY INSTITUTIONAL INVESTORS THAT INVOLVES HEDGING AGAINST OTHER INVESTMENT RISKS RATHER THAN PURE BETS AGAINST INDIVIDUAL STOCKS I DON'T LOOK AT NEW YORK STOCK EXCHANGE SHORT INTEREST WITH ANY SIGNIFICANCE BECAUSE IT'S SO HEAVILY INFLUENCED BY INSTITUTIONS SAID PHILIP ERLANGER MARKET ANALYST AT FIDELITY INVESTMENTS IN BOSTON A BILLION IS MEANINGLESS ANYWAY WHEN THE WHOLE VOLUME OF THE STOCK MARKET HAS BEEN RISING AS WELL MR ERLANGER ADDED THAT THE HIGH LEVEL CAN ONLY BE A POSITIVE FOR THE STOCK MARKET SINCE THERE'S THAT MUCH MORE TO BE BOUGHT BACK TO COVER SHORT POSITIONS CHRYSLER CORP AGAIN LED THE LIST OF COMPANIES WITH THE HIGHEST SHORT INTEREST 178 MILLION SHARES UP FROM 168 MILLION A MONTH BEFORE SHORT INTEREST IN CHRYSLER IS NOW UP ABOUT FOUR MILLION SHARES FROM TWO MONTHS AGO WALT DISNEY CO ALSO CONTINUED TO SHOW HIGH SHORT INTEREST ITS TOTAL ROSE TO NEARLY 158 MILLION SHARES FROM 142 MILLION AT MIDMAY AND WALMART STORES INC SHORT INTEREST ROSE 16 MILLION SHARES TO A TOTAL OF 13 MILLION AMONG THE SHARPEST INCREASES IN SHORT INTEREST WERE AMERICAN TELEPHONE & TELEGRAPH CO UP 22 MILLION SHARES TO 48 MILLION AND US SURGICAL CORP UP 13 MILLION SHARES TO 94 MILLION MARRIOTT CORP'S SHORT INTEREST ALTHOUGH STILL HIGH AT NEARLY 13 MILLION SHARES WAS SLIGHTLY LOWER THAN A MONTH AGO ANOTHER DECLINER WAS MOTOROLA INC WHOSE FIGURE DROPPED TO 63 MILLION SHARES FROM 85 MILLION AT MIDMAY OTHER BIG DECLINERS WERE FIRST BANK SYSTEM INC DOWN 42 MILLION SHARES TO 14 MILLION AND MARVEL ENTERTAINMENT GROUP DOWN 17 MILLION TO 22 MILLION ANDREA ELECTRONICS CORP WHOSE METEORIC STOCK PRICE RISE IN RECENT MONTHS HAS CAUSED SOME CONSTERNATION AND PROMPTED AN INQUIRY BY THE SECURITIES AND EXCHANGE COMMISSION HAD AMEX SHORT INTEREST OF NEARLY 263000 SHARES UP FROM AN ADJUSTED 127000 A MONTH BEFORE THE COMPANY HAD A 5FOR1 STOCK SPLIT JUNE 3 AND NOW HAS ABOUT 25 MILLION SHARES OUTSTANDING THE AMEX IN AN EFFORT TO COOL THE SPECULATIVE FRENZY SURROUNDING ANDREA RECENTLY SAID THAT NO SHARES IN ANDREA COULD BE BOUGHT ON MARGIN NEW YORK EXCHANGE SHORT INTEREST ROSE AT THE JUNE 15 SETTLEMENT DATE TO 1042482700 SHARES FROM 994122756 AT MIDMAY ON THE AMEX SHORT INTEREST ROSE TO 91564120 SHARES FROM AN ADJUSTED 83588110 AT MIDMAY THE MONTH INCLUDED THE 21 TRADING DAYS THROUGH JUNE 8 AT MIDJUNE 1992 SHORT INTEREST VOLUME WAS 820269399 SHARES ON THE BIG BOARD AND 65804552 ON THE AMEX TRADERS WHO SELL SHORT BORROW STOCK AND SELL IT BETTING THAT THE STOCK'S PRICE WILL DECLINE AND THAT THEY CAN BUY THE SHARES BACK LATER AT A LOWER PRICE FOR RETURN TO THE LENDER SHORT INTEREST IS THE NUMBER OF SHARES THAT HAVEN'T YET BEEN PURCHASED FOR RETURN TO LENDERS ALTHOUGH A SUBSTANTIAL SHORT POSITION REFLECTS HEAVY SPECULATION THAT A STOCK'S PRICE WILL DECLINE SOME INVESTORS CONSIDER AN INCREASE IN SHORT INTEREST BULLISH BECAUSE THE BORROWED SHARES EVENTUALLY MUST BE BOUGHT BACK FLUCTUATION IN SHORT INTEREST OF CERTAIN STOCKS ALSO MAY BE CAUSED PARTLY BY ARBITRAGING THE FIGURES OCCASIONALLY INCLUDE INCOMPLETE TRANSACTIONS IN RESTRICTED STOCK THE LEVEL OF NEGATIVE SENTIMENT MEASURED BY THE BIG BOARD SHORT INTEREST RATIO ROSE SHARPLY TO 418 FROM 372 AT MIDMAY THE RATIO IS THE NUMBER OF TRADING DAYS AT THE EXCHANGE'S AVERAGE DAILY TRADING VOLUME THAT WOULD BE REQUIRED TO CONVERT THE TOTAL SHORT INTEREST POSITION AVERAGE DAILY NEW YORK EXCHANGE VOLUME FOR THE 21 TRADING DAYS WAS 249096000 SHARES SOME ANALYSTS SUGGEST HOWEVER THAT THE RATIO HAS WEAKENED IN VALUE AS AN INDICATOR BECAUSE OPTIONS AND OTHER PRODUCTS CAN BE USED TO HEDGE SHORT POSITIONS 9306220028 930622 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 FEDERAL NATIONAL MORTGAGE ASSOCIATION 175 MILLION OF MEDIUMTERM NOTES DUE JUNE 30 2003 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY STANLEY & CO THEY WERE REOFFERED AT PAR TO YIELD 605 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE NOTES WERE PRICED AT A SPREAD OF 15 BASIS POINTS ABOVE TREASURYS PENNSYLVANIA POWER & LIGHT CO 125 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 1 2000 PRICED AS 6S AT 9983 TO YIELD 603 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE BONDS WERE PRICED AT A SPREAD OF 49 BASIS POINTS ABOVE THE SEVENYEAR TREASURY NOTE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP FLIR SYSTEMS INC INITIAL OFFERING OF 23 MILLION COMMON SHARES AT 12 APIECE THROUGH UNDERWRITERS LED BY HAMBRECHT & QUIST MICHIGAN MUNICIPAL BOND AUTHORITY 1419 MILLION SERIES 1993B REVENUE NOTES PRICED BY A FIRST BOSTON CORP GROUP SERIES B1B23 NOTES HAVE 3 COUPONS AND ARE PRICED TO YIELD 255 ON MAY 5 1994 SERIES B24 NOTES HAVE A 3 COUPON AND ARE PRICED TO YIELD 26 ON JULY 28 1994 ALL OF THE NOTES ARE BACKED BY A LETTER OF CREDIT FROM COMERICA BANK THEY ARE EXPECTED TO BE RATED MIG1 BY MOODY'S BANCO BMC SA BRAZIL 50 MILLION OF 1025 SEMIANNUAL EUROBONDS DUE DEC 30 1995 VIA WEST MERCHANT BANK LTD FORMERLY CHARTERED WESTLB LTD A SUBSIDIARY OF WESTDEUTSCHE LANDESBANK GIROZENTRALE ISSUED AND REOFFERED AT 9961 TO YIELD 1043 SEMIANNUAL A MARGIN OF 610 BASIS POINTS ABOVE TREASURY YIELD CURVE FEES FOR COMANAGING BANKS 1125 POINTS DEPARTEMENT DES HAUTS DE SEINE FRANCE 600 MILLION FRENCH FRANCS OF 7 EUROBONDS DUE JULY 21 2003 AT ISSUE PRICE 101325 VIA BANQUE PARIBAS REOFFERED AT 9965 TO YIELD 705 ANNUAL A SPREAD OF 25 BASIS POINTS ABOVE 675 OBLIGATIONS DES ASSIMABLES DU TRESOR DUE 2003 FEES TWO POINTS ENERGIE BEHEER NEDERLAND BV NETHERLANDS 300 MILLION OF 575 EUROBONDS DUE JULY 20 2000 AT ISSUE PRICE 10075 VIA SWISS BANK CORP REOFFERED AT 99185 TO YIELD 59 A MARGIN OF 24 BASIS POINTS ABOVE THREEYEAR TREASURY NOTE FEES 1875 POINTS KOMMUNIVEST I OREBRO IAN AB SWEDISH AGENCY 100 MILLION OF FLOATINGRATE EURONOTES DUE JULY 20 1998 AT ISSUE AND FIXED REOFFER PRICE 9994 VIA LEHMAN BROTHERS INTERNATIONAL INTEREST PAYABLE QUARTERLY AT THREEMONTH LONDON INTERBANK OFFERED RATE FOR DOLLARS PLUS 01875 POINT GUARANTOR COUNTY COUNCIL OF OREBRO AND 10 OF THE MUNICIPALITIES OF THE DISTRICT OF OREBRO FEES 02 POINT SHEARSON LEHMAN BROTHERS HOLDINGS PLC US PARENT 150 MILLION OF FLOATINGRATE EUROBONDS DUE JULY 19 1996 VIA LEHMAN BROTHERS INTERNATIONAL LTD INTEREST PAYABLE QUARTERLY AT 70 BASIS POINTS ABOVE THREEMONTH LIBOR FOR US DOLLARS REOFFERED AT 9991 GUARANTOR SHEARSON LEHMAN HOLDINGS INC FEES 025 POINT SONY CAPITAL CORP JAPANESE PARENT 250 MILLION OF 5 EUROBONDS DUE JULY 22 1996 AT ISSUE PRICE 101 VIA GOLDMAN SACHS INTERNATIONAL REOFFERED AT 9985 TO YIELD 506 A MARGIN OF 50 BASIS POINTS ABOVE WHENISSUED TREASURY KEEPWELL AGREEMENT OR PARTIAL GUARANTEE WITH PARENT FEES 1375 POINTS TESCO PLC UK 200 MILLION OF PARTLY PAID 875 EUROBONDS DUE FEB 20 2003 AT INITIAL ISSUE PRICE 22075 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 2045 OF PAR WITH FURTHER 80 DUE FEB 20 1994 FEES TWO POINTS INITIAL PAYMENT DATE JULY 14 WORLD BANK SUPRANATIONAL 40 MILLION IRISH POUNDS OF 7625 SEMIANNUAL EUROBONDS DUE DEC 2 2002 AT ISSUE PRICE 9923 VIA RIADA STOCKBROKERS A UNIT OF ABNAMRO BANK NV BONDS YIELD 774 AT ISSUE PRICE A MARGIN OF 19 BASIS POINTS ABOVE IRISH GOVERNMENT'S 925 BONDS DUE JULY 2003 COMMISSIONS UNDISCLOSED 9306220027 930622 JARDINE SETS CHINA VENTURE HONG KONG HONG KONG'S JARDINE GROUP SAID IT WILL ENTER THE SUPERMARKET BUSINESS IN CHINA THROUGH A JOINT VENTURE OF ITS SUBSIDIARY DAIRY FARM INTERNATIONAL HOLDINGS LTD AND SHANGHAI TEXTILE RAW MATERIALS CORP DAIRY FARM ABOUT 46 CONTROLLED BY JARDINE STRATEGIC HOLDINGS LTD ALREADY HAS A JOINT VENTURE THAT OWNS A HANDFUL OF 7ELEVEN CONVENIENCE MARKETS IN CHINA THE NEW DEAL ENVISIONS 60 SUPERMARKETS IN SHANGHAI IN THE NEXT FIVE YEARS INITIAL INVESTMENT IN THE NEW VENTURE SHANGHAI WELLCOME CO WILL TOTAL 25 MILLION 9306220026 930622 PROFITS IN DEBT OUTWEIGH RISK IN VENEZUELA BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK VENEZUELA IS ON ITS THIRD PRESIDENT IN SIX WEEKS BUT BIG INVESTORS HAVEN'T FLED THE COUNTRY'S DEBT MARKET FAR FROM IT DURING THE UPHEAVAL THEY RUSHED TO BUY VENEZUELAN BILLS AND BONDS TOO RISKY DON'T TELL THAT TO THE INVESTORS WHICH INCLUDE FIDELITY INVESTMENTS SCUDDER STEVENS & CLARK INC AND OTHERS THEY ARE SHOWING A PROFIT AND PERHAPS MORE IMPORTANT THEY ARE TAKING A NEW VIEW OF POLITICAL RISK IN LATIN AMERICA TENDING TO SEE THE UPHEAVAL AS A TRADING OPPORTUNITY NOT A REASON TO STAY AWAY THIS IS THE CUTTING EDGE SAYS JOHNNY BEVERIDGE A VICE PRESIDENT AT SALOMON BROTHERS INC THIS IS NOT THE MEXICAN TREASURY DEBT MARKET IT IS MUCH MORE WILD AND WOOLLY OF COURSE IT'S UNCLEAR WHETHER THE CHAOS OF A DEVELOPING DEMOCRACY WILL PROVE KINDER IN THE LONG RUN TO INVESTORS THAN DID THE LATTERDAY DICTATORSHIPS OR MILITARY COUPS WHILE INVESTORS THINK IT WILL PROVE KINDER THE VENEZUELAN TRADES OF 1993 REWARDING SO FAR CAN ONLY BE DESCRIBED AS GUTWRENCHINGLY RISKY AND INVESTORS COULD PULL OUT AT ANY MOMENT MANY ALREADY HAVE HERE'S HOW THEY GOT IN YIELDS ON 91DAY VENEZUELAN CENTRAL BANK PAPER KNOWN AS BONOS ZERO CUPONES OR ZCBS SOARED TO 50 TO 60 IN APRIL AS THENPRESIDENT CARLOS ANDRES PEREZ BEGAN TO TOTTER WITH THE VENEZUELAN CURRENCY THE BOLIVAR DEVALUING AT ABOUT 30 A YEAR INVESTORS FIGURED THEY HAD A CHANCE OF ANNUALIZED RETURNS OF PERHAPS 20 TO 30 MR PEREZ SURVIVED TWO ATTEMPTED COUPS BY THE MILITARY LAST YEAR BUT WAS FINALLY IMPEACHED IN MAY ON CORRUPTION CHARGES THE PRESIDENT OF CONGRESS SERVED BRIEFLY AS NATIONAL PRESIDENT UNTIL AN INTERIM PRESIDENT RAMON VELASQUEZ WAS APPOINTED AN ELECTION WILL BE HELD DEC 6 AS POLITICAL EVENTS BEGAN TO BOIL FIDELITY AND OTHER BIG INVESTORS INCLUDING SCUDDER STEVENS SCOOPED UP MILLIONS OF DOLLARS IN SHORTTERM ZEROS PUTTING SOME OF THEM IN FUNDS HELD BY US INVESTORS SUCH AS THE FIDELITY NEW MARKETS INCOME FUND AND THE SCUDDER LATIN AMERICAN DOLLAR INCOME FUND ZEROCOUPON SECURITIES PAY NO INTEREST BUT ARE SOLD AT A DISCOUNT TO FACE VALUE AND ARE LATER REDEEMED FOR THE FULL FACE VALUE I THINK IT IS A GOOD INVESTMENT SAYS JOSE GARCIA MEDRANO A MEMBER OF SCUDDER STEVENS'S PORTFOLIO MANAGEMENT TEAM IF YOU FACTOR IN A 30 DEVALUATION YOU STILL HAVE ABOUT A 15 RETURN IN DOLLARS SAYS ROBERT K CITRONE MANAGER OF THE FIDELITY FUND OUR FRUSTRATION IS THAT WE COULDN'T BUY ENOUGH AND RATES CAME DOWN TOO FAST BIG DEALERS SUCH AS SALOMON BROTHERS AND NOMURA SECURITIES INTERNATIONAL WERE ALSO IN THE GAME GETTING THE PAPER FOR CLIENTS AND TRADING FOR THEIR OWN ACCOUNTS UNTIL NOW THE REWARDS HAVE BEEN RICH SALOMON FIGURES A PURCHASE OF ZCBS ON MAY 12 FOR EXAMPLE SHOWED A RETURN THROUGH FRIDAY OF 434 IN DOLLARS AN INDICATED ANNUAL RETURN OF 5211 BUT IF THIS SEEMS LIKE THE NOBRAINER OF THE YEAR THINK AGAIN ZCBS ARE BOUGHT AND SOLD WITH DIFFICULTY THEY ARE TYPICALLY HELD THROUGH THEIR 91DAY MATURITY THE BOLIVAR CAN'T BE HEDGED EFFECTIVELY INVESTORS TOOK A NAKED BET THAT THE BOLIVAR WOULDN'T FALL PREY TO AN EVEN GREATER DEVALUATION DURING THE POLITICAL FRAY IN EFFECT THEY ENTRUSTED MILLIONS OF DOLLARS TO A SOFTSPOKEN WOMAN NAMED RUTH DE KRIVOY PRESIDENT OF THE CENTRAL BANK WHICH ONLY RECENTLY WON LEGAL INDEPENDENCE FROM THE GOVERNMENT LAST MONTH MRS DE KRIVOY ALLOWED ZCB RATES TO CLIMB TO NEARLY 70 IN DEFENSE OF THE BOLIVAR MRS DE KRIVOY MADE IT PLAIN IN AN INTERVIEW LAST WEEK THAT THE CURRENCY DEFENSE WOULD CONTINUE NO MATTER WHO WAS IN OFFICE WE HAVE BEEN KEEPING TO OUR POLICIES WITH THREE DIFFERENT GOVERNMENTS IN SIX WEEKS SHE SAID DURING THE IMPEACHMENT PROCESS OF MR PEREZ WE HAD CAPITAL INFLOWS ALL DURING THOSE DAYS SHE SAID I DON'T THINK ANYBODY WOULD HAVE BEEN ABLE TO FORECAST THAT TO HEAR A LATIN AMERICAN CENTRAL BANKER SPEAK LIKE THAT AND TO SEE INVESTORS BELIEVE HER IS NOTHING SHORT OF A COMPLETE CHANGE IN ATTITUDES FOR INVESTORS ABOUT POLITICAL AND ECONOMIC REFORM BUYERS ALSO SCOOPED UP VENEZUELAN BRADY BONDS DURING THE TURMOIL IN SOME WAYS A RISKIER PLAY THESE BONDS ARE SIMPLY OLD VENEZUELAN BANK LOANS ROLLED UP INTO A SECURITY WHOSE PRINCIPAL IS GUARANTEED BY US TREASURY BONDS THEY ARE 30YEAR MATURITIES AND VOLATILE FROM MARCH THROUGH YESTERDAY A BRADY ISSUE KNOWN AS THE VENEZUELAN PAR BOND WAS UP 196 IN PRICE BRADY BONDS ARE NAMED FOR FORMER US TREASURY SECRETARY NICHOLAS BRADY WHO DEVISED THEM AS A LATIN AMERICAN DEBTRESCUE PLAN THE CALMING OF THE POLITICAL FIRESTORM IN CARACAS AND STRONG DEMAND HAS PUSHED ZCB RATES DOWN TO 413 IN THE MOST RECENT AUCTION A BIT TOO LOW FOR SOME BUYERS OMOTUNDE AJ MAHONEY A VICE PRESIDENT AT NOMURA SAYS THE ZERO COUPON IS PLAYED OUT FOR NOW THE SMART MONEY HAS TAKEN ITS PROFITS AND WILL WAIT FOR THE NEXT BOUT OF POLITICAL VOLATILITY FIDELITY IS ALSO STANDING ASIDE FOR NOW THINKING ABOUT GETTING INVOLVED NEXT TIME CONSIDER THIS CURRENCY RISK ISN'T THE ONLY ROPE ONE CAN TRIP OVER TO GET THE MONEYMARKET PAPER INVESTMENT FIRMS SUCH AS FIDELITY MUST WORK THROUGH DEALERS HERE OR IN CARACAS DEALERS SUBMIT BIDS TO THE CENTRAL BANK BY HAND EACH WEDNESDAY THERE'S NO ASSURANCE THAT THE PAPER WILL BE AWARDED SINCE THE CENTRAL BANK USES ZCBS FOR ITS OWN FINICKY MONEYSUPPLY MANAGEMENT PURPOSES THEN THERE'S THE POSSIBILITY OF A 30 VENEZUELAN WITHHOLDING TAX ON INVESTMENT IN THE ZEROS NOBODY IS FORCED TO PAY IT NOW TRADERS THINK IT IS A GRAY AREA OF COURSE VENEZUELAN AUTHORITIES COULD CHANGE THEIR MINDS AND MAKE THE ISSUE BLACK AND WHITE JP MORGAN & CO WHICH HAS BEEN AROUND LATIN AMERICA A LOT LONGER THAN MOST BANKS AND BROKERS DOESN'T DEAL IN ZCBS BECAUSE IT THINKS THE TAX RISK IS UNCLEAR MR BEVERIDGE OF SALOMON SAYS ZCBS ARE A PERFECT PLAYGROUND FOR AGGRESSIVE CAPITAL HOWEVER IT'S NOT FOR THE FAINTHEARTED 9306220025 930622 PEPPERAND SALT CAREER CRIMINALS NOACCOUNT EXECUTIVES 9306220024 930622 NEW YORK TIMES CO PLANS STOCK BUYBACK OF UP TO 100 MILLION NEW YORK NEW YORK TIMES CO SAID ITS BOARD AUTHORIZED SPENDING AS MUCH AS 100 MILLION TO BUY BACK CLASS A SHARES AHEAD OF COMPLETION OF THE COMPANY'S STOCKSWAP ACQUISITION OF AFFILIATED PUBLICATIONS INC THE COMPANY HAS TWO CLASSES OF STOCK CLASS B IS CONTROLLED BY THE SULZBERGER FAMILY LANCE R PRIMIS PRESIDENT AND CHIEF OPERATING OFFICER SAID THE COMPANY'S CURRENT MARKET PRICE DOES NOT REFLECT THE UNDERLYING VALUE OF THE COMPANY'S ASSETS OR OF ITS EARNINGS OR ITS CASH FLOW POTENTIAL HE SAID THE REPURCHASE PLAN AT CURRENT PRICE LEVELS OF THE STOCK REPRESENTS AN ATTRACTIVE INVESTMENT OPPORTUNITY WHICH WILL BENEFIT THE COMPANY AND ITS SHAREHOLDERS WE FEEL THAT THIS WILL BE PARTICULARLY TRUE IN LIGHT OF THE OPPORTUNITIES ARISING FROM THE PROPOSED ACQUISITION OF AFFILIATED THE TIMES'S STOCK PRICE HAS ERODED SEVERAL DOLLARS A SHARE SINCE IT ANNOUNCED THE PLANNED ACQUISITION OF AFFILIATED ON JUNE 11 THE MOVE YESTERDAY TO SHORE UP THE STOCK'S PRICE IS IMPORTANT SINCE THE COMPLETION OF THE AFFILIATED ACQUISITION IS CONTINGENT ON THE TIMES'S AVERAGE STOCK PRICE PRIOR TO COMPLETION OF THE MERGER STAYING ABOVE 22 A SHARE YESTERDAY THE CLASS A SHARES FELL 125 CENTS TO 23625 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE THE SHARES TO BE REPURCHASED PERIODICALLY IN EITHER OPENMARKET OR PRIVATE TRANSACTIONS WILL BE USED FOR STOCKBASED EMPLOYEE BENEFIT PLANS AND OTHER CORPORATE PURPOSES THE COMPANY SAID IT WOULDN'T BUY BACK ANY SHARES DURING THE PERIOD FROM SHORTLY BEFORE MAILING PROXY MATERIALS FOR THE AFFILIATED MERGER TO SHORTLY BEFORE THE CLOSING OF THE MERGER SEPARATELY THE COMPANY SAID ADVERTISING VOLUME FOR THE FLAGSHIP NEW YORK TIMES WAS DOWN 1 IN MAY COMPARED WITH MAY 1992 TO SEVEN MILLION LINES DUE TO AN ADDITIONAL ADHEAVY FRIDAY IN THE MAY 1992 CALENDAR FOR THE FIRST FIVE MONTHS OF THE YEAR AD VOLUME WAS OFF 37 TO 311 MILLION LINES THE COMPANY SAID ITS REGIONAL NEWSPAPER GROUP OF 23 DAILY NEWSPAPERS AND EIGHT NONDAILIES HAD TOTAL AD VOLUME OF 32 MILLION INCHES IN MAY UP 11 FOR THE FIRST FIVE MONTHS AD VOLUME IN THE REGIONAL NEWSPAPERS WAS 139 MILLION INCHES UP 32 9306220023 930622 ENTERPRISE SOLAR DISH INVENTOR HAS DIFFICULTY MARKETING PRODUCT HIS EXPERIENCE ILLUSTRATES DEDICATION ALONE DOESN'T GUARANTEE SUCCESS BY JOHN R EMSHWILLER STAFF REPORTER OF THE WALL STREET JOURNAL FOX ISLAND WASH THE WORLD HEADQUARTERS OF SOLAR STEAM INC SITS IN A MEADOW ON THIS HEAVILY FORESTED ISLAND CORPORATE RECORDS SOME OLD CLOTHES AND A SLEEPING BAG CRAM A WALKIN CARGO CONTAINER A GEODESIC DOME HOUSES THE COMPANY'S TELEPHONE FAX AND COMPUTER IN THE CENTER OF THE MEADOW IS SOLAR STEAM'S PRIZED POSSESSION A PROTOTYPE 60FOOTTALL DISH THAT SOME ENERGY EXPERTS SAY COULD HELP POWER THE WORLD IN THE 21ST CENTURY IF SOLAR STEAM SURVIVES THIS CENTURY THAT IS I'M HANGING ON BY MY TEETH SAYS DOUGLAS WOOD THE FIRM'S 41YEAROLD FOUNDER AND CHAIRMAN AFTER 15 YEARS SOLAR STEAM HAS SOLD NO SOLAR POWER DISHES AND HAS NO REVENUE IT HAS ONLY ONE EMPLOYEE MR WOOD HE IS UNPAID MR WOOD IS AN EXCEPTIONALLY ARDENT MEMBER OF A VERY ARDENT GROUP INDEPENDENT INVENTORS WHO PURSUE THEIR DREAMS FOR YEARS ON END WITH LITTLE REWARD AS MR WOOD'S EXPERIENCE SHOWS IT TAKES MORE THAN FIERCE DEDICATION TO LEAP FROM CLEVER INVENTOR TO SUCCESSFUL ENTREPRENEUR LUCK AND TIMING CAN PLAY A CRUCIAL ROLE SO CAN THE INVENTOR'S OWN SALESMANSHIP AND ABILITY TO COMPROMISE QUALITIES LACKING IN MANY WOULDBE EDISONS IN HIS PURSUIT OF A SOLAR ENERGY DEVICE MR WOOD HAS MELTED BEER CANS USED PUGET SOUND TO BEND METAL AND SPENT 1 MILLION OF OUTSIDE CAPITAL WHEN MONEY HAS RUN LOW HE HAS CHOPPED FIREWOOD FOR CASH MR WOOD'S SOLAR DEVICE RESEMBLES A LARGE SILVER BOWL RESTING ON A LATTICE OF PIPES INSIDE MIRRORS REFLECT AND CONCENTRATE THE SUN'S RAYS ONTO A SMALL RECEIVER IN THE BOWL WHICH HEATS WATER TO PRODUCE STEAM THAT STEAM CAN BE USED TO PRODUCE ELECTRICITY RUN INDUSTRIAL PROCESSES OR HEAT NEIGHBORHOODS IN A SUNNY CLIMATE EACH DISH COULD PRODUCE THE ANNUAL ENERGY EQUIVALENT OF BURNING 100 BARRELS OF OIL THE INVENTOR CALCULATES AT 20000 EACH THE DISHES CAN PROVIDE ENERGY LESS EXPENSIVELY THAN COMPETING DISHES AND OTHER SOLAR DESIGNS MR WOOD FIGURES HIS CALCULATIONS HAVE YET TO BE TESTED COMMERCIALLY HOWEVER THERE ARE A WIDE VARIETY OF SOLAR DEVICES ON THE MARKET OR UNDER DEVELOPMENT ALMOST ALL HAVE A DIFFICULT TIME COMPETING ECONOMICALLY WITH FOSSIL FUELS A ONETIME DOCUMENTARY FILM MAKER MR WOOD STARTED SOLAR STEAM IN 1978 WHEN THE ENERGY CRISIS WAS IN FULL SWING AND SOLAR WAS A HOT NEW AREA DOUG WANTS TO CHANGE THE WORLD SAYS GEORGE JAY SOLAR STEAM'S FORMER PRESIDENT A POLLUTIONFREE LOWCOST SOLAR POWER SOURCE SEEMED LIKE JUST THE TICKET WITH NO FORMAL TRAINING IN THE SOLAR FIELD MR WOOD READ VORACIOUSLY STARTING WITH A HIGHSCHOOL GEOMETRY BOOK HIS SOLARDESIGN IDEAS REFLECT HIS LIFE ON THIS PUGET SOUND ISLAND ABOUT 20 MILES FROM TACOMA HE SHARES A SMALL GEODESIC DOME IN THE WOODS WITH HIS WIFE SANDRA WHOSE WORK AS A PHYSICIAN HELPS SUPPORT THE FRUGAL COUPLE MR WOOD DISLIKES WASTE SO MUCH THAT HE SOMETIMES BRINGS HOME FOR DINNER DEAD ANIMALS HE FINDS ON THE ROAD MR WOOD WANTED A SOLAR DEVICE THAT COULD BE BUILT ANYWHERE BY JUST ABOUT ANYONE HE CHOSE GLASS MIRRORS FOR REFLECTORS RATHER THAN SPACEAGE POLYMERS WHICH ARE POPULAR WITH OTHER SOLARDISH MAKERS FOR THE FRAME HE PICKED ALUMINUM SOME OF WHICH HE INITIALLY OBTAINED BY MELTING EMPTY BEER AND SODA CANS HIS CARDINAL RULE OF INVENTING INNOVATION SHOULD BE AVOIDED WHENEVER POSSIBLE IN FAVOR OF EXISTING MATERIALS HE BROKE HIS RULE ENOUGH TO EARN FOUR PATENTS ONE WAS FOR THE STRONG BUT LIGHTWEIGHT FRAME THAT HE CREATED BY MODIFYING A GEODESIC DOME HE ALSO FIGURED HOW TO SHAPE AND FIT TOGETHER THE DISH'S 560 TRIANGULAR MIRRORS SO PRECISELY THAT THEY NEED NO POSTASSEMBLY ADJUSTMENT THE GEOMETRY OF DOUG'S DISH IS VERY CLEVER SAYS HAL SEGELSTAD FORMER DIRECTOR OF RENEWABLE ENERGY RESEARCH FOR PACIFIC GAS & ELECTRIC CO A BIG UTILITY IN SAN FRANCISCO EVEN MR WOOD'S WRONG TURNS WERE CREATIVE UNABLE TO AFFORD MULTIMILLIONDOLLAR METAL PRESSES HE USED PUGET SOUND TO BEND HIS ALUMINUM HE STRAPPED ALUMINUM SHEETS ON TO WOODEN FORMS LOWERED THEM FROM A BOAT TO A DEPTH OF 600 FEET AND LET WATER PRESSURE DO THE REST THIS HYDROFORMING METHOD BEGAN TO WORK JUST ABOUT THE TIME HE CONCEIVED A MUCH SIMPLER METHOD THAT COULD BE DONE ON LAND BY THE EARLY 1980S MR WOOD'S SOLAR DISH WAS ATTRACTING A LOT OF ATTENTION ABOUT 50 PEOPLE EACH INVESTED 10000 OR MORE IN SOLAR STEAM THOUGH MR WOOD RETAINS A MAJORITY INTEREST IN THE CLOSELY HELD COMPANY A 1983 US DEPARTMENT OF COMMERCE REPORT PRAISED MR WOOD'S DISH AS TECHNICALLY SOUND AND VERY COMPETITIVE SOLAR STEAM BUILT UP A STAFF OF SIX HAD AN OFFICE IN TACOMA AND A SEEMINGLY BRIGHT FUTURE BUT IT WASN'T TO BE A DROP IN OIL PRICES MADE IT MUCH HARDER FOR SOLAR POWER TO COMPETE WITH CONVENTIONAL ENERGY SOURCES THE REAGAN ADMINISTRATION ALSO SEVERELY CUT FEDERAL SUPPORT FOR SOLAR RESEARCH MR WOOD BECAME SO CONVINCED UNCLE SAM WAS TRYING TO KILL SOLAR DEVICES THAT HE REFUSED TO ATTEND AN ENERGY DEPARTMENT CEREMONY WHEN THE AGENCY GAVE HIS COMPANY A NATIONAL CITATION FOR ENERGY INNOVATION IN 1984 IT WAS A SHAM HE SAYS SUCH INTENSE IDEALISM HAS COMPOUNDED MR WOOD'S TRAVAILS SAYS MR SEGELSTAD THE FORMER UTILITY OFFICIAL AS TIME WENT ON HE MANAGED TO TURN OFF AS MANY PEOPLE AS HE TURNED ON MR JAY SOLAR STEAM'S FORMER PRESIDENT ARGUES THAT SOLAR STEAM HAS MISSED SALES OPPORTUNITIES BECAUSE MR WOOD KEPT INSISTING THE DISH NEEDED FURTHER REFINEMENTS BEFORE IT COULD BE MARKETED LIKE MANY INVENTORS I THINK DOUG FEARS LOSING CONTROL OF HIS BABY SAYS MR JAY YEAH I'M TOO INTENSE MR WOOD SAYS BUT I'M NO POLITICIAN AND I CAN'T PLAY GAMES NEVERTHELESS HE INSISTS HIS STYLE HAS HELPED SOLAR STEAM AND DENIES HE HAS BEEN TOO PROTECTIVE OF HIS INVENTION HE SAYS HE WOULD STILL LOVE TO FIND A COMPANY TO MANUFACTURE HIS DISHES BUT WITH ENERGY PRICES LOW HE IS FINDING NO TAKERS AND HAS TAKEN AN EXTENDED BREAK FROM LOOKING HE EXPECTS ENERGY PRICES TO RISE SOMEDAY HOWEVER OR MAYBE THE CLINTON ADMINISTRATION WILL HELP TO REVIVE INTEREST IN SOLAR POWER EITHER WAY THE DISH WILL STILL BE THERE RIGHT NOW MR WOOD HAS STOPPED TINKERING WITH THE DEVICE SO HE CAN BUILD A NEW CEMENT HOUSE IN THE MEADOW HE IS READING A LOT OF BOOKS ABOUT HOME CONSTRUCTION BUILDING A HOUSE LIKE BEING AN INVENTOR IS CERTAINLY A LEARNING EXPERIENCE HE SAYS WITH A LAUGH 9306220022 930622 TECHNOLOGY PC SOFTWARE SALES ROSE 20 IN FIRST QUARTER BUOYED BY WINDOWS WASHINGTON SALES OF PERSONAL COMPUTER APPLICATIONS SOFTWARE JUMPED 20 IN THE FIRST QUARTER TO 146 BILLION AS PROGRAMS WRITTEN FOR MICROSOFT CORP'S WINDOWS SURPASSED DOSBASED PROGRAMS FOR THE FIRST TIME THE SOFTWARE PUBLISHER'S ASSOCIATION SAID WINDOWS APPLICATIONS SALES WERE 669 MILLION UP 114 FROM THE PRIOR PERIOD WHILE SALES OF DOS SOFTWARE FELL 20 TO 502 MILLION THE ASSOCIATION ALSO SAID THAT NORTH AMERICAN SALES OF CONSUMER SOFTWARE FOR PCS GREW AT A FASTER RATE THAN BUSINESS SOFTWARE DURING THE SAME PERIOD CONSUMER SOFTWARE INCLUDING HOME EDUCATION ENTERTAINMENT AND PERSONAL FINANCE PRODUCTS ROSE 29 TO 238 MILLION IN THE FIRST QUARTER BY COMPARISON REVENUE FOR BUSINESS APPLICATIONS SUCH AS SPREADSHEETS GREW 18 THE ASSOCIATION SAID THE STRONGEST GROWTH WAS IN HOME EDUCATION PRODUCTS WHICH ROSE 86 TO 37 MILLION WORD PROCESSORS AND SPREADSHEETS REMAINED THE TWO BESTSELLING PRODUCTS GROSS DOMESTIC SALES OF WORD PROCESSORS JUMPED 18 TO 203 MILLION AND SPREADSHEETS ROSE 7 TO 178 MILLION 9306220021 930622 TECHNOLOGY & SCIENCE AMDAHL GM UNIT CREATE VENTURE FOR SOFTWARE SHIFT BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS AMDAHL CORP AND ELECTRONIC DATA SYSTEMS CORP SAID THEY HAVE FORMED A NEW BUSINESS TO HELP COMPANIES MOVE THEIR MAINFRAME COMPUTER SOFTWARE TO LESSPOWERFUL MACHINES THE VENTURE CALLED ANTARES ALLIANCE GROUP IS AIMED AT UNCLOGGING A SOFTWARE LOGJAM THAT HAS SLOWED THE CORPORATE MIGRATION FROM BIG MAINFRAME MACHINES TO SMALLER NETWORKS OF COMPUTERS THE ALLIANCE WHICH WILL BE 80OWNED BY AMDAHL AND 20 BY EDS A GENERAL MOTORS CORP UNIT IN DALLAS WILL MARKET TOOLS TO HELP COMPANIES WRITE SOFTWARE APPLICATIONS THAT WILL RUN BOTH ON MAINFRAMES AND ON SMALLER MACHINES THIS IS THE SINGLE BIGGEST PROBLEM OUR CUSTOMERS FACE SAID JOE ZEMKE PRESIDENT OF AMDAHL A MAINFRAME VENDOR IN SUNNYVALE CALIF WE SEE AN OPPORTUNITY TO GROW A VERY HEALTHY VIABLE BUSINESS HERE JOHN CAVALIER A FORMER AMDAHL EXECUTIVE WHO WILL SERVE AS PRESIDENT OF THE VENTURE ESTIMATED THAT ANTARES WILL GENERATE HUNDREDS OF MILLIONS OF DOLLARS IN REVENUE OVER THE NEXT FIVE YEARS THE SOFTWARE WILL BE SOLD THROUGH DISTRIBUTORS AND RESELLERS AND BY AMDAHL'S DIRECT SALES FORCE AMDAHL STOCK ROSE 47 YESTERDAY TO 5625 UP 25 CENTS IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE GM SERIES E SHARES CLOSED UNCHANGED AT 30 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE KURT JOHNSON A SENIOR ANALYST AT INTERNATIONAL DATA CORP A MARKET RESEARCH FIRM IN FRAMINGHAM MASS SAID HE'S CONVINCED THERE'S A SOFTWARE SHORTAGE FOR COMPANIES MOVING OFF MAINFRAMES HOWEVER HE SAID IT'S TOO EARLY TO TELL WHETHER EDS AND AMDAHL HAVE CRACKED THE CODE THERE'S NOT ENOUGH INFORMATION HERE TO REALLY MEAN ANYTHING SAID MR JOHNSON WHO WAS BRIEFED BY THE TWO COMPANIES ON THE ANTARES VENTURE ALREADY THE ALLIANCE HAS RAISED QUESTIONS FOR EDS THE COMPANY IS IN THE MIDST OF JOINTLY BIDDING WITH TEXAS INSTRUMENTS INC FOR SEVERAL LARGE SOFTWARE CONTRACTS THAT ULTIMATELY COULD COMPETE WITH ANTARES TEXAS INSTRUMENTS DALLAS GENERATES ABOUT 250 MILLION A YEAR IN REVENUE FROM SOFTWARE DEVELOPMENT TOOLS SIMILAR TO THE PROPOSED ANTARES PRODUCT DUNCAN MCCLAIN DIRECTOR OF MARKETING FOR TEXAS INSTRUMENTS' SOFTWARE DIVISION SAID HE IS PUZZLED BY THE EDS ALLIANCE THEY HAVE IN A SENSE INTRODUCED A COMPETITOR MR MCCLAIN SAID AN EDS SPOKESMAN SAID HIS COMPANY'S PARTNERSHIPS WITH TEXAS INSTRUMENTS ARE UNAFFECTED BY THE ALLIANCE 9306220020 930622 CITICORP'S KEY HOLDER SELLS SOME STOCK FOR FAT PROFIT NEW YORK PRINCE ALWALEED BIN TALAL CITICORP'S LARGEST SHAREHOLDER SOLD AN ADDITIONAL 345 MILLION BLOCK OF THE BANKING GIANT'S STOCK ON FRIDAY BOOKING ANOTHER FAT PROFIT ON HIS INVESTMENT AND FULFILLING HIS REGULATORY OBLIGATION IN FEBRUARY THE SAUDI PRINCE SAID HE WOULD SELL AS MANY AS 128 MILLION COMMON SHARES PURCHASED AT AN AVERAGE PRICE OF AROUND 1240 UNDER AN AGREEMENT WITH BANK REGULATORS TO KEEP HIS HOLDINGS UNDER 10 OF THE COMPANY'S COMMON STOCK THE PRINCE WAS REQUIRED TO SELL THE BULK OF HIS 166 MILLION IN COMMON STOCK BECAUSE OF HIS HOLDINGS OF THE COMPANY'S CONVERTIBLE STOCK IN 1991 AFTER ACCUMULATING A LARGE COMMON STAKE HE INVESTED 590 MILLION IN CITICORP CONVERTIBLE PREFERRED STOCK WHICH BROUGHT HIS STAKE UP TO APPROXIMATELY 148 OF THE COMPANY IN APRIL HE SOLD 89 MILLION SHARES AT 30 JUST AS BANK STOCKS PEAKED EARNING PROFIT OF AT LEAST 125 MILLION FRIDAY'S SALE WAS AT AN AVERAGE SHARE PRICE OF 27625 A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION SAID GIVING THE SAUDI PRINCE AN ADDITIONAL 52 MILLION PROFIT ON HIS INVESTMENT IN CITICORP 9306220019 930622 WHO'S NEWS BROADCAST INTERNATIONAL INC BROADCAST INTERNATIONAL INC MIDVALE UTAH HOWARD G HAAS MANAGEMENT CONSULTANT WAS NAMED CHAIRMAN OF THIS SATELLITE BUSINESS COMMUNICATIONS COMPANY MR HAAS 68 YEARS OLD WHO HAS SERVED AS A DIRECTOR OF THE COMPANY SUCCEEDS RETIRING CHAIRMAN FRANK STANTON SEPARATELY BROADCAST INTERNATIONAL NAMED FORMER CLOROX CO PRESIDENT CHARLES R WEAVER AND RETIRED US SENATOR EJ JAKE GARN AS DIRECTORS FILLING VACANCIES ON THE SEVENMEMBER BOARD 9306220018 930622 BUSINESS BRIEF POLICY MANAGEMENT SYSTEMS CORP COMPANY ENTERS PACT TO BUY CYBERTEK FOR 60 MILLION POLICY MANAGEMENT SYSTEMS CORP AN INSURANCE SOFTWARE COMPANY SAID IT ENTERED INTO A DEFINITIVE PACT TO BUY CYBERTEK CORP AN INSURANCE SOFTWARE COMPANY IN DALLAS IN A DEAL VALUED AT ABOUT 60 MILLION THIS WEEK POLICY MANAGEMENT IN COLUMBIA SC WILL MAKE A TENDER OFFER FOR CYBERTEK'S FOUR MILLION SHARES OUTSTANDING AT 1510 A SHARE THE COMPANY SAID THE SECURITIES AND EXCHANGE COMMISSION IS CURRENTLY INVESTIGATING THE ACCURACY OF POLICY MANAGEMENT'S FINANCIAL REPORTING THE COMPANY'S STOCK PLUMMETED IN APRIL AFTER IT ANNOUNCED THAT FIRSTQUARTER EARNINGS WOULD FALL FAR SHORT OF ESTIMATES POLICY MANAGEMENT OFFICIALS COULDN'T BE REACHED FOR COMMENT A CYBERTEK EXECUTIVE DECLINED TO COMMENT ON THE SEC INVESTIGATION 9306220017 930622 BUSINESS BRIEF OSHMAN'S SPORTING GOODS INC MEGASTORE PLANS TO RESTRAIN PROFIT IN CURRENT FISCAL YEAR OSHMAN'S SPORTING GOODS INC WILL POST LITTLE TO NO PROFIT IN THE CURRENT FISCAL YEAR AS IT ACCELERATES PLANS TO OPEN MORE MEGASTORES SAID ALVIN N LUBETKIN PRESIDENT AND CHIEF EXECUTIVE OFFICER IN MARCH THE HOUSTONBASED COMPANY HAD SAID IT WAS CONFIDENT OF POSTING A PROFIT FOR THE FISCAL YEAR ENDING JAN 30 1994 BUT SPEAKING YESTERDAY AFTER THE ANNUAL MEETING MR LUBETKIN SAID INTENSE COMPETITION FROM OTHER SUPERSTORE OPERATIONS CUT INTO SALES AT MANY OF OSHMAN'S 166 STANDARDSIZED STORES THE MEGASTORES THAT OSHMAN'S IS PLANNING ARE AT LEAST FOUR TIMES THE SIZE OF ITS STANDARD STORES WHICH AVERAGE 10000 SQUARE FEET MR LUBETKIN SAID THE COMPANY EXPECTS TO ADD TWO OR THREE MORE SUPERSPORTS USA MEGASTORES THIS YEAR AND AT LEAST SIX NEXT YEAR TO THE SIX NOW OPEN HE SAID THE COMPANY PROJECTS OPERATING AT LEAST 23 OF THE SUPERSPORTS USA UNITS BY THE END OF 1995 WITH TOTAL ANNUAL SALES VOLUME FOR THOSE UNITS OF CLOSE TO 250 MILLION 9306220016 930622 INTERNATIONAL TAIWAN'S EXPORT CONTRACTS UP TAIPEI TAIWAN TAIWAN'S EXPORT CONTRACTS IN MAY STOOD AT 746 BILLION UP 76 FROM THE YEAREARLIER MONTH AND UP 43 FROM APRIL THE MINISTRY OF ECONOMIC AFFAIRS SAID THE MINISTRY ATTRIBUTED THE 76 RISE MAINLY TO THE GAIN OF EXPORT ORDERS FROM HONG KONG JAPAN AND THE US WHILE THE 43 RISE FROM APRIL WAS BECAUSE OF AN INCREASE OF EXPORT ORDERS FROM THE US AND HONG KONG 9306220015 930622 BUSINESS BRIEF BDM INTERNATIONAL INC FIRM TO GET MAJORITY INTEREST IN GERMAN DEFENSE CONCERN BDM INTERNATIONAL INC SAID IT WILL ACQUIRE A MAJORITY INTEREST FROM THE GERMAN GOVERNMENT IN THE DEFENSE CONCERN INDUSTRIEANLAGENBETRIEBSGESELLSCHAFT THE MCLEAN VA DEFENSE CONTRACTOR SAID THE ACQUISITION WILL INCREASE REVENUE BY 50 ITS 1992 REVENUE TOTALED 424 MILLION BDM SAID THE MOVE FITS ITS LONGRANGE STRATEGY TO GROW TO BILLIONDOLLAR REVENUE LEVELS BY THE YEAR 2000 BDM SAID THAT UNDER THE TERMS OF THE AGREEMENT IT WILL MAKE A CASH PAYMENT OF LESS THAN 5 MILLION TO THE GOVERNMENTOWNED COMPANY THAT CURRENTLY CONTROLS IABG AND HAS AGREED TO PROVIDE IABG WITH CAPITAL OF ABOUT 22 MILLION A BDM SPOKESMAN SAID THE COMPANY IS STILL NEGOTIATING THE EXACT SIZE OF ITS INTEREST IN IABG WITH OTHER MAJOR SHAREHOLDERS IABG WHICH PROVIDES INFORMATION TECHNOLOGY TO DEFENSE AND OTHER GOVERNMENT AGENCIES HAD SALES IN 1992 OF ABOUT 200 MILLION AND A WORK FORCE OF 1500 IABG IS UNDERGOING A CONVERSION FROM DEFENSEORIENTED TO CIVILORIENTED CONTRACT WORK 9306220014 930622 ASARCO AGREES TO PAY NEIGHBORS CLEAN UP DENVER SMELTER SITE DENVER ASARCO INC SAID IT HAS REACHED A PRELIMINARY AGREEMENT WITH RESIDENTIAL NEIGHBORS OF ITS GLOBEVILLE REFINERY IN DENVER CALLING FOR 10 MILLION IN POLLUTIONREMEDIATION WORK AND BETWEEN 14 MILLION AND 262 MILLION IN CASH TO HOMEOWNERS THE SETTLEMENT WOULD END ASARCO'S PLANS TO APPEAL A DECISION EARLIER THIS YEAR BY A DENVER JUDGE AWARDING 28 MILLION TO THE PLAINTIFFS IN THE NEIGHBORHOOD THE CLASSACTION LAWSUIT ALLEGED THE PLANT CONTAMINATED THE NEIGHBORS' PROPERTY A FINAL AGREEMENT IS EXPECTED IN 60 DAYS AND MUST BE APPROVED BY DENVER DISTRICT COURT JUDGE MORRIS BEN HOFFMAN ASARCO SAID THE SETTLEMENT DOESN'T REPRESENT AN ADMISSION OF LIABILITY BUT IS AN ATTEMPT BY ASARCO TO PUT THE MATTER BEHIND US AND MOVE FORWARD WITH THE REMEDIATION A SPOKESMAN SAID NEW YORKBASED ASARCO ALSO SAID THE SETTLEMENT WON'T RESULT IN A CHARGE AGAINST EARNINGS ASARCO SHARES CLOSED AT 20125 UP 25 CENTS IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ASARCO ALSO REACHED AN AGREEMENT WITH THE STATE OF COLORADO IN NOVEMBER TO CLEAN UP THE 89ACRE SITE ON WHICH THE 106YEAROLD GLOBEVILLE SMELTER SITS NO ESTIMATE HAS BEEN MADE FOR THE COST OF THAT REMEDIATION THE SMELTER HAS PROCESSED GOLD SILVER AND CADMIUM IN THE LATEST SETTLEMENT THE COMPANY AGREED TO REMOVE THE SOIL AT 567 HOMESITES AND REPLACE IT WITH CLEAN SOIL A PLAN ESTIMATED TO COST ABOUT 10 MILLION IN ADDITION THE COMPANY WILL MAKE IMMEDIATE CASH PAYMENTS TO RESIDENTS OF 112 MILLION ADDITIONAL CASH PAYMENTS OF BETWEEN 3 MILLION AND 15 MILLION WILL BE PAID TO THE RESIDENTS FROM WHATEVER MONEY ASARCO IS ABLE TO COLLECT FROM ITS INSURANCE COMPANIES THE COMPANY SAID THE ATTORNEY FOR THE PLAINTIFFS MACON COWLES OF BOULDER COLO SAID THE AGREEMENT SURPASSES WHAT MANY PEOPLE THOUGHT WAS POSSIBLE APPLAUDING ASARCO FOR UNDERTAKING THE REMEDIATION ASARCO SAID IT WILL MAKE CLAIMS FOR THE ENTIRE SETTLEMENT AMOUNT AGAINST ITS INSURANCE CARRIERS 9306220013 930622 CALIFORNIA'S WILSON LEGISLATIVE CHIEFS AGREE ON A STATE BUDGET OF 52 BILLION BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL CALIFORNIA GOV PETE WILSON AND LEGISLATIVE LEADERS REACHED A COMPROMISE ON A 52 BILLION STATE BUDGET THAT TAKES 26 BILLION FROM CITY AND COUNTY COFFERS CUTS WELFARE PAYMENTS AND INCREASES STATE COLLEGE FEES AFTER STATE LEADERS LAST YEAR INCURRED PUBLIC WRATH FOR WRANGLING OVER THE BUDGET UNTIL NEARLY LABOR DAY CALIFORNIA'S ASSEMBLY VOTED BIPARTISAN SUPPORT FOR THE COMPROMISE TO PRODUCE WHAT ONE DEMOCRATIC LEGISLATOR CALLED A BUDGET FOR THE WORST OF TIMES THE SENATE PREPARED TO TAKE UP DEBATE YESTERDAY EVENING GOV WILSON ACKNOWLEDGED THE BUDGET FOR FISCAL 1994 WHICH STARTS JULY 1 CONTAINS SOMETHING TO MAKE US ALL UNHAPPY UNDER THE COMPROMISE BUDGET THE STATE WILL GRAB 26 BILLION IN LOCALGOVERNMENT PROPERTY TAX REVENUES TO KEEP CALIFORNIA'S PUBLIC SCHOOL FUNDING STEADY AT CURRENT LEVELS COUNTIES WHICH HAVE BEEN PLANNING FOR WORSTCASE BUDGETS SAY THEY CAN LITTLE AFFORD SUCH A FUND SHIFT IT'S ROBBING PETER TO PAY PAUL SAID SAN FRANCISCO MAYOR FRANK JORDAN THE CITY ALREADY BRACING FOR DEEP CUTS IN HEALTH AND SOCIAL SERVICES HAS SEEN DEMONSTRATIONS IN RECENT DAYS PROTESTING CUTS IN SERVICES TO A WOMEN'S SHELTER AND OTHER PROGRAMS THOUGH THE PROPERTYTAX SHIFT HITS CITIES COUNTIES AND SPECIAL DISTRICTS THE GOVERNOR SAID MOST OF THE BURDEN FELL ON COUNTIES THE MANEUVER TO MEET STATUTORY REQUIREMENTS FOR EDUCATIONAL SUPPORT WAS ONE THAT THE GOVERNOR SAID NO ONE LIKES ME INCLUDED ESSENTIALLY WHAT WE ARE TRYING TO DO HERE IS TO STRETCH RESOURCES TO PROVIDE SERVICES FOR A NATIONSTATE OF 32 MILLION PEOPLE IN VERY HARD ECONOMIC TIMES MR WILSON TOLD REPORTERS AFTER EMERGING FROM MARATHON WEEKEND SESSIONS WITH LAWMAKERS HE ADDED THAT THE DEAL REQUIRED COMPROMISE ON THE PART OF MANY PEOPLE TO SWEETEN THE PILL THE STATE HAS EXEMPTED LOCALITIES FROM HUNDREDS OF MILLIONS OF DOLLARS OF STATEORDERED PROGRAMS THE STATE ALSO WILL EXTEND A 05 SALES TAX TO DEC 31 FROM JULY 1 A STATEWIDE ELECTION NOV 2 WILL GIVE VOTERS IN EVERY COUNTY A CHANCE TO EXTEND THE SALES TAX STILL FURTHER THE COMPROMISE ALSO INCLUDES A PLAN TO PAY OFF 27 BILLION IN DEBT INCURRED IN THE CURRENT YEAR OVER 18 MONTHS A FORM OF DEFICIT SPENDING THAT GOV WILSON EARLIER HAD RESISTED BASIC WELFARE GRANTS WILL BE CUT 27 AND WELFAREFRAUD PROGRAMS BEEFED UP FEES AT THE UNIVERSITY OF CALIFORNIA WILL INCREASE 22 OR 630 A YEAR WHILE COMMUNITY COLLEGES AND THE CALIFORNIA STATE UNIVERSITY SYSTEM SUSTAIN LESSER FEE BOOSTS MR WILSON SAID HIS BUDGET PRESERVES BEDROCK VALUES OF PUBLIC SAFETY AND LOCAL ACCOUNTABILITY THROUGH THE COUNTIES' OPTIONS TO EXTEND THE SALES TAX 9306220012 930622 BUSINESS BRIEF VALSPAR CORP TRADE PANEL'S QUERIES SLOW PURCHASE OF CARGILL DIVISION VALSPAR CORP SAID FEDERAL ANTITRUST OFFICIALS REQUESTED ADDITIONAL INFORMATION ABOUT ITS PROPOSED 90 MILLION ACQUISITION OF CARGILL INC'S RESINPRODUCTS DIVISION VALSPAR MINNEAPOLIS ANNOUNCED THE PURCHASE LAST MONTH AND PLANNED TO CLOSE THE TRANSACTION ON JUNE 30 HOWEVER THE CLOSING WILL BE DELAYED BY THE PROCESS OF COLLECTING AND SUBMITTING THE REQUESTED INFORMATION TO THE FEDERAL TRADE COMMISSION THE DIVISION TO BE BOUGHT PRODUCES RESINS USED IN ARCHITECTURAL SPECIALPURPOSE COATINGS AND IN ORIGINALEQUIPMENT MANUFACTURING IT ALSO MAKES POLYESTERS FOR REINFORCED FIBERGLASS AND OTHER SPECIALTY APPLICATIONS VALSPAR A PAINT AND COATINGS COMPANY SAID THE RESIN DIVISION'S REVENUE FOR THE FISCAL YEAR ENDED MAY 31 1992 WAS 190 MILLION THE COMPANY SAID IT EXPECTS THE ACQUISITION TO BE COMPLETED IN SIX TO EIGHT WEEKS 9306220011 930622 BUSINESS BRIEF DAMARK INTERNATIONAL INC COMPANY AGREES TO ACQUIRE ASSETS OF FINGERHUT COS UNIT DAMARK INTERNATIONAL INC AGREED TO ACQUIRE THE ASSETS OF FINGERHUT COS' COMB UNIT THE COMPANIES SAID THEY EXPECT TO CLOSE THE PURCHASE BY AUG 31 SUBJECT TO CERTAIN CONDITIONS THE TWO CATALOG RETAILERS DIDN'T DISCLOSE TERMS OF THE AGREEMENT ALTHOUGH FINGERHUT SAID THE SALE WILL HAVE NO MATERIAL EFFECT ON 1993 RESULTS COMB WHICH SPECIALIZES IN CLOSEOUT MERCHANDISING HAD ABOUT 100 MILLION IN REVENUE LAST YEAR FINGERHUT SAID THAT SEARS ROEBUCK & CO'S DEPARTURE FROM THE CATALOG MARKETPLACE HAS CREATED AN ENORMOUS OPPORTUNITY FOR OUR CORE BUSINESS AND THAT IT WANTS TO FOCUS ITS RESOURCES ON THAT SEGMENT DAMARK A VALUEORIENTED DIRECT MERCHANDISER BASED IN MINNEAPOLIS HAD 1992 SALES OF 270 MILLION 9306220010 930622 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS JUNE 22JULY 5 ABOUT 70 PAINTINGS PRINTS AND DRAWINGS TRACING THE EVOLUTION OF THE WORK OF THE MEXICAN MODERNIST FRIDA KAHLO 19071954 FROM HER EARLIEST WATERCOLORS TO HER LATE SELFPORTRAITS ALSO ON VIEW ARE EXAMPLES OF PRECOLUMBIAN SCULPTURE AND MEXICAN FOLK ART BOTH OF WHICH WERE CENTRAL TO KAHLO'S WORK AND A SELECTION OF PHOTOGRAPHS OF THE ARTIST MORE THAN 30 OF THE WORKS COME FROM THE COLLECTION OF DOLORES OLMEDO OF MEXICO CITY THE LIFE DIRECTOR OF THE DIEGO RIVERA AND FRIDA KAHLO MUSEUMS THE SHOW WAS ORGANIZED BY THE SCHIRN KUNSTHALLE IN FRANKFURT GERMANY IN COOPERATION WITH EUROPALIA 93 MEXICO A BELGIAN FESTIVAL HONORING MEXICO MUSEUM OF FINE ARTS 1001 BISSONNET BETWEEN MONTROSE AND MAIN THROUGH AUG 29 713 6397300 A PAIR OF SHOWS AT THE GUGGENHEIM'S NEW DOWNTOWN LOCATION THE FORMER BOASTING 60 DRAWINGS ECHINGS WATERCOLORS AND OILS BY SWISSBORN ARTIST PAUL KLEE INCLUDING EARLY ACADEMIC LANDSCAPES AND SATIRICAL ETCHINGS GEOMETRIC ABSTRACTIONS EXECUTED AT THE BAUHAUS AND LATE MASTERWORKS THROUGH SEPT 19 THE LATTER IS AN EXHIBITION OF MINIMALIST PAINTING BY ARTISTS SUCH AS ELLSWORTH KELLY BRICE MARDEN AGNES MARTIN ROBERT RAUSCHENBERG RICHARD SERRA AND FRANK STELLA THROUGH AUG 22 THIS EXHIBIT ABOUT THE SCIFI TELEVISION SERIES FEATURES COSTUMES UNIFORMS AND MASKS FROM THE SERIES AS WELL AS PROPS INCLUDING THE TRADEMARK VISOR WORN BY LT CMDR GEORDI LA FORGE AND A VARIETY OF BEHINDTHESCENES PHOTOGRAPHS DRAWINGS AND BLUEPRINTS OF SHOW SETS AND SCENES THERE'S ALSO A SCREENING SERIES FEATURING DEFINING EPISODES THAT ILLUSTRATE CONTINUING NARRATIVES AND THEMES ADVANCE TICKETS RECOMMENDED MUSEUM OF TELEVISION & RADIO 25 WEST 52ND ST THROUGH OCT 3 NINE WEEKS OF JAZZ VOCAL CHAMBER AND ORCHESTRAL MUSIC HIGHLIGHTS INCLUDE THE OPENINGNIGHT ALLBEETHOVEN CONCERT CONDUCTED BY JULIUS RUDEL AND FEATURING PIANIST MISHA DICHTER AND THE ORCHESTRA OF ST LUKE'S JUNE 26 VLADIMIR FELTSMAN PERFORMING FOUR BACH WORKS JULY 9 A CONCERT WITH ANDRE PREVIN PIANIST ALICIA DE LARROCHA AND VIOLINIST YOUNGUCK KIM AS WELL AS THREE OF MR PREVIN'S PROTEGES VIOLINIST LAURA FRAUTSCHI AND VIOLISTS CHUN JIN CHANG AND TATJANA MEAD JULY 11 AND THE AMERICAN PREMIERE OF SONATA FOR CELLO AND PIANO BY MR PREVIN PERFORMED BY YOYO MA AND MR PREVIN AUG 5 CARAMOOR CENTER FOR MUSIC AND THE ARTS FOLLOW SIGNS TO CARAMOOR FROM THE JUNCTION OF ROUTE 22 AND GIRDLE RIDGE ROAD JUNE 26SEPT THE COMPANY OPENS ITS 37TH SEASON WITH PUCCINI'S LA BOHEME STARRING CYNTHIA HAYMON AS MIMI MARTIN THOMPSON AS RODOLFO AND ANN PANAGULIAS AS MUSETTA JOHN COPLEY DIRECTS AND JOHN CROSBY AND JOHN KEENAN SHARE CONDUCTING DUTIES JULY 2 7 9 16 23 AUG 2 7 10 17 21 AND 28 ALSO ON TAP A NEW PRODUCTION OF MOZART'S THE MAGIC FLUTE WITH SHERYL WOODS AND KURT STREIT JULY 3 8 10 14 AUG 3 9 14 16 20 24 AND 27 A NEW PRODUCTION OF HANDEL'S XERXES WITH FREDERICA VON STADE DAWN UPSHAW AND ERIE MILLS JULY 17 21 30 AUG 5 11 19 AND 25 A NEW PRODUCTION OF STRAUSS'S CAPRICCIO JULY 24 28 AUG 6 12 18 AND 26 AND A DOUBLE BILL OF THE AMERICAN PREMIERE OF KURT WEILL'S THE PROTAGONIST AND A NEW PRODUCTION OF HIS THE TSAR HAS HIS PHOTOGRAPH TAKEN JULY 31 AUG 4 AND 13 9306220009 930622 SCIENCE IN THE LAB NEW FUELS MAKE DEBUT ON ROAD TO NOWHERE BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON ON THE WESTERN EDGE OF THIS CITY SITS A 1986 BLUE FOURDOOR BMW THAT HAS LOGGED 273000 GRUELING LOS ANGELES FREEWAY MILES WITHOUT EVER LEAVING TEXAS OR TOUCHING TIRE TO PAVEMENT THE CAR LIVES ITS LIFE AS A GUINEA PIG IN SHELL OIL CO'S WESTHOLLOW RESEARCH CENTER WITH A LONG TUBE HOOKED UP TO ITS TAILPIPE TO COLLECT EVERYTHING IT SPEWS OUT PARKED IN A TESTLAB GARAGE WITH THE REAR WHEELS ATOP TWO LONG ROTATING PIPES THAT ALLOW THE CAR TO ACCELERATE AND BRAKE WITHOUT REALLY GOING ANYWHERE THE BMW IS THE VEHICLE FOR SHELL RESEARCHERS RACING TO CONCOCT A FORMULA FOR REFORMULATED GASOLINE BY A JAN 1 1995 CLEAN AIR ACT DEADLINE INVENTING A NEW GASOLINE QUICKLY IS HARD ENOUGH BUT SCIENTISTS AT SHELL AND OTHER OIL COMPANIES ARE SORT OF DRIVING IN THE DARK WITH DIM HEADLIGHTS SHELL RESEARCHERS SAY IT TYPICALLY TAKES 18 TO 24 MONTHS TO DEVELOP NEW FUELS AND REWORK REFINERIES SO THE GASOLINE CAN BE MADE AND DISTRIBUTED TINKERING WITH ONE INGREDIENT OFTEN REQUIRES MESSING WITH ANOTHER BUT THE AMERICAN PETROLEUM INSTITUTE THE INDUSTRY'S MAIN TRADE GROUP AND THE ENVIRONMENTAL PROTECTION AGENCY ARE STILL NIGGLING OVER THE DETAILS OF EXACTLY WHAT THE NEW GASOLINE SHOULD DO FINAL DETAILS ARE EXPECTED IN THE NEXT MONTH OR SO IN THE MEANTIME SCIENTISTS FOR SHELL AND THE NATION'S OTHER REFINERS HAVE BEEN PERFORMING BESTGUESS SCIENCE ON WHAT THEY THINK THE NEW RECIPE WILL REQUIRE ONCE THOSE FINAL RULINGS ARE SET IT'S GOING TO BE A MAD DASH TO MAKE THE NEW FUEL BY THE DEADLINE SAYS JEROME TOENJES A SHELL RESEARCH MANAGER AT WESTHOLLOW BESIDES REFORMULATED GASOLINE THE 200ACRE WESTHOLLOW FACILITY DEVELOPS FUEL ADDITIVES TO CLEAN ENGINE PARTS AND MOTOR OILS TO LUBRICATE HOTTER ENGINES BUT THE MOST PRESSING WORK IS ON NEW FUELS AND LUBRICANTS A SCIENCE THAT CAN QUICKLY HIT THE MARKETPLACE BETWEEN NEW GOVERNMENT RULES DEMANDING CLEANER FUELS INCREASINGLY SOPHISTICATED AUTO ENGINES REQUIRING MORE COMPLEX MOTOR OILS AND FIERCE COMPETITIVE PRESSURES TO DEVELOP NEW AND BETTER CLEANSING ADDITIVES PRODUCTS REFINED FROM CRUDE OIL ARE UNDERGOING A REVOLUTION NOT IN MY TIME HAVE I SEEN SO MANY CHANGES SAYS PAUL CUNEO A 24YEAR SHELL VETERAN AND CURRENTLY FUELS AND LUBRICANTS DIRECTOR AT THE RESEARCH CENTER AT THE SAME TIME SHELL HARDPRESSED FINANCIALLY IN RECENT YEARS IS QUESTIONING EXACTLY WHAT ITS RESEARCH AND DEVELOPMENT PEOPLE SHOULD BE DOING EXECUTIVES ARE WORKING ON A STUDY TO LOOK AT THE CENTER'S LONGTERM VALUE AND EFFECTIVENESS AS PART OF A BROAD COMPANY RESTRUCTURING WESTHOLLOW CUT ITS STAFF 10 LAST YEAR TO 1200 PEOPLE CHANGES WITHIN SHELL THE US SUBSIDIARY OF ROYAL DUTCH/SHELL GROUP HAVE ALREADY FORCED THE RESEARCH CENTER TO FOCUS MORE ON SCIENCE THAT HELPS THE BUSINESS THIS YEAR SAYS MR CUNEO HE SAYS THE CENTER WILL WORK ON PROJECTS THAT HAVE A LEAD TIME OF AS MUCH AS SEVEN YEARS BUT IT HAS THE LUXURY OF LEANING ON ITS PARENT COMPANY'S LABORATORY IN THE HAGUE WHERE THE SCIENCE MAY NOT HAVE ANY COMMERCIAL APPLICATION FOR 10 TO 15 YEARS ONE CHANGE AT WESTHOLLOW WAS TO BRING IN PEOPLE LIKE MR TOENJES WHO SPENT 16 YEARS IN SHELL'S MARKETING DEPARTMENT THE PURPOSE OF THIS JOB IS TO KEEP A MARKETING FOCUS ON WHAT WE DO HERE HE SAYS WE NEED TO WORK ON THINGS WE CAN ACTUALLY SELL IN THE TEST GARAGE THE BMW IS SET UP TO RIDE LIKE A VIDEO GAME THAT SIMULATES A 23MINUTE DRIVE ALONG LOS ANGELES FREEWAYS THE ROUTE INCLUDES IDLING ACCELERATING HIGH SPEEDS AND LOW A TECHNICIAN IN THE DRIVER'S SEAT WATCHES A COMPUTER SCREEN SPEEDING UP AND BRAKING AT THE DIRECTION OF A MOVING GRAPH LINE THAT TELLS HIM AT WHAT SPEED TO RUN THE CAR A VACUUM DEVICE SUCKS THE EXHAUST OUT OF THE TAILPIPE AND INTO 10 PLASTIC BAGS ROUGHLY THE SIZE OF KITCHEN TRASH LINERS THE EXHAUST IS THEN FED INTO A GAS CHROMATOGRAPH WHICH SEPARATES THE GASES AND TELLS RESEARCHERS WHAT'S IN THEM TO MEET WHAT SHELL THINKS THE CLEAN AIR ACT WILL DEMAND RESEARCHERS LOOK PRIMARILY AT REDUCING EMISSIONS OF VOLATILE ORGANIC COMPOUNDS CARBON MONOXIDE AND TOXICS SUCH AS BENZENE EMISSIONS OF NITROGEN OXIDE WHICH SOME ENVIRONMENTALISTS SAY MAY BE A GREATER CONTRIBUTOR TO SMOG THAN PREVIOUSLY THOUGHT MUST NOT INCREASE THAT CAN BE TRICKY BECAUSE THE METHOD FOR CUTTING CARBON MONOXIDE EMISSIONS TENDS TO BOOST OUTPUT OF NITROGEN OXIDE UNDER THE ACT THE NINE METROPOLITAN AREAS WITH THE DIRTIEST AIR INCLUDING LOS ANGELES HOUSTON CHICAGO AND NEW YORK WILL HAVE THE STRICTEST GASOLINE RULES WHILE MORE THAN 90 OTHER AREAS CAN CHOOSE ON THEIR OWN TO REQUIRE THE SALE OF ONLY THE CLEANEST GASOLINE VOLATILE ORGANIC COMPOUNDS OR VOCS ARE HYDROCARBONS THAT IN HOT WEATHER CAN MIX WITH THE ATMOSPHERE TO FORM SMOG VOCS EVAPORATE OUT OF THE GAS TANK WHEN A CAR IS PARKED OR BEING FILLED UP WITH FUEL THEY ALSO COME OUT OF THE TAILPIPE MOSTLY DURING A CAR'S STARTUP WHEN THE GASOLINE ISN'T FULLY BURNED IN THE ENGINE TO REDUCE EVAPORATION REFINERS FOR SEVERAL YEARS HAVE BEEN MAKING THE GASOLINE HEAVIER TO MEET EXISTING FEDERAL AND LOCAL LAWS THAT TAKE EFFECT DURING WARMER MONTHS BUT THAT CAN INCREASE TAILPIPE EMISSIONS OF VOCS AND THE CLEAN AIR ACT REQUIRES REDUCTIONS OF BOTH MR CUNEO SAYS SHELL HAS RUN TEST FORMULATIONS THROUGH THE BMW THAT FIT THE BILL IN THE WINTER IN MUCH OF THE NORTHERN US OIL COMPANIES ALREADY MUST REDUCE CARBON MONOXIDE EMISSIONS THAT CAN CAUSE RESPIRATORY PROBLEMS TO DO THAT THEY HAVE ADDED CHEMICALS TO GASOLINE THAT INCREASE ITS OXYGEN CONTENT WHICH IN TURN CUTS CARBON MONOXIDE EMISSIONS THE CLEAN AIR ACT REQUIRES THAT THESE CUTS BE MADE YEARROUND STARTING IN 1995 THE LAB TESTS ARE ONLY THE FIRST STEP WESTHOLLOW OWNS A 73CAR FLEET THAT TESTS THE GASOLINE WITH REAL DRIVERS ON REAL ROADS SHELL LATER DISMANTLES THE ENGINES TO CHECK FOR UNEXPECTED SIDE EFFECTS ON THE CAR'S PARTS OR PERFORMANCE SOMETIMES SHELL HIRES THE DRIVERS OTHER TIMES IT LENDS THE CARS TO EMPLOYEES THE PROBLEM REMAINS THAT FREQUENTLY ONE ADJUSTMENT TO GASOLINE COMPONENTS AFFECTS ANOTHER SO THE CHALLENGE TO SHELL AND OTHER MARKETERS WILL BE TO COME UP WITH A GASOLINE THAT DOES EVERYTHING AT ONCE I LIKEN IT TO A BLOODY MARY SAYS MR TOENJES WE NOT ONLY HAVE TO PUT IN THE RIGHT TOMATO JUICE WE ALSO NEED THE RIGHT AMOUNT OF CELERY AND SPICES IN THE PROPER PROPORTION 9306220008 930622 BUSINESS BRIEF ALLIANT TECHSYSTEMS INC AGREEMENT IS SET TO ACQUIRE ASTRA UPC FOR 285 MILLION ALLIANT TECHSYSTEMS INC SAID IT TENTATIVELY AGREED TO PAY 285 MILLION TO ACQUIRE ASTRA UPC CORP A MAKER OF ORDNANCE MATERIEL AND OTHER DEFENSE PRODUCTS ASTRA A CLOSELY HELD MCLEAN VA HOLDING COMPANY IS WHAT REMAINS OF ASTRA HOLDINGS PLC A UK CONCERN THAT WENT INTO LIQUIDATION IN EARLY 1992 THE ASTRA CONSISTS OF TWO UNITS ACCUDYNE CORP A JANESVILLE WIS MAKER OF MUNITIONS FUZES AND DEFENSE ELECTRONICS AND KILGORE CORP A TOONE TENN MAKER OF INFRARED DECOY DEVICES USED TO PROTECT AIRCRAFT FROM HEATSEEKING MISSILES A COMMERCIALLIGHTING DIVISION WAS SOLD SEPARATELY AN ASTRA OFFICIAL SAID TOGETHER THE TWO UNITS EMPLOY 970 AND FOR THE FISCAL YEAR ENDED MARCH 31 REPORTED SALES OF 93 MILLION THE UNITS' COMBINED OPERATING EARNINGS FOR THE PERIOD WERE 101 MILLION 9306220007 930622 LEISURE & ARTS ON SPORTS LEE JANZEN SNAGS A MAJOR' IN STYLE BY FREDERICK C KLEIN SPRINGFIELD NJ IT ISN'T EXACTLY CATCH22 BUT IT'S CLOSE I'M TALKING ABOUT THE GOLF DICTUM THAT HOLDS THAT IT'S TOUGH TO WIN ONE OF THE SPORT'S MAJORS UNLESS UH YOU'VE ALREADY WON A MAJOR THE SUBJECT AROSE HERE ON SATURDAY AFTER THE US OPEN'S THIRD ROUND WHEN PAYNE STEWART SHOT A 68 TO PULL TO WITHIN A STROKE OF THE LEADER LEE JANZEN THE 36YEAROLD STEWART ALREADY HAD CAPTURED TWO MAJORS THE 1989 PGA CHAMPIONSHIP AND THE 1991 OPEN TO NONE FOR THE 28YEAROLD JANZEN AND STEWART WAS ASKED ABOUT THE VALUE OF THAT EXPERIENCE WELL HE REPLIED SENSIBLY ENOUGH I KNOW I CAN DO IT BECAUSE I'VE DONE IT BEFORE THAT A PLAYER WHO'D WON JUST TWO PREVIOUS PGA TOUR EVENTS SHOULD WIN GOLF'S MOST TESTING TITLE SURPRISED MANY INCLUDING JANZEN HIMSELF I NEVER KNEW I HAD IT IN ME HE LATER CONFESSED IT'S THE OVERACHIEVEMENT OF MY LIFE HE ADDED I WOKE UP THIS MORNING WITH A KNOT IN MY STOMACH AND IT HASN'T GONE AWAY YET JANZEN'S COMPETITORS SAY THIS SELFASSESSMENT IS TOO MODEST HE'S AN INTELLIGENT GOLFER WHO PLAYS WITHIN HIS CAPABILITIES AND HE HAS AN EXCEPTIONALLY GOOD SHORT GAME SAID NICK PRICE THE REIGNING PGA CHAMP WHO TIED FOR 11TH HERE SAID THE 43YEAROLD TOM WATSON JANZEN'S BOYHOOD IDOL WHO STIRRED THE ASHES BY FINISHING TIED FOR FIFTH HE'S GOT THE KIND OF GAME THAT SHOULD STAND HIM IN GOOD STEAD FOR A LONG TIME IN TRUTH JANZEN IS JUST THE SORT OF PLAYER WHO WINS US OPENS HE'S MIDDLESIZED 6 FEET TALL AND 170 POUNDS DRIVES IN THE MIDDLEDISTANCE RANGE 260 OR SO YARDS AND USUALLY KEEPS HIS SHOTS IN THE MIDDLE OF THE FAIRWAY HE IS MOREOVER A MAKER OF LISTS AND SETTER OF GOALS BOTH HAPPY ATTRIBUTES FOR TOPLEVEL PARTICIPANTS IN A SPORT IN WHICH PLANNING COUNTS HIS FIRST GOLFING GOAL WAS TO BREAK 95 AND IT TOOK HIM A WHILE TO DO IT THE PRODUCT OF A NOMADIC CHILDHOOD HIS FATHER WAS AN OFTTRANSFERRED SALESMAN HE DIDN'T TAKE UP GOLF SERIOUSLY UNTIL AFTER MOVING TO FLORIDA AT AGE 12 WHICH IS RELATIVELY LATE IN LIFE AND HE HACKED FOR A FULL YEAR UNTIL GETTING SOME TIPS FROM A COLLEGE GOLFER WHO TOOK A LIKING TO HIM MAKING HIS HIGH SCHOOL TEAM WAS A GOAL THEN HIS COLLEGE ONE AT FLORIDA SOUTHERN COLLEGE A THREEYEAR CAMPAIGN TO WIN A TOURNEYPLAYER'S CARD DIDN'T PUT HIM OFF NEITHER DID THE TWO YEARS IT TOOK HIM TO POST HIS FIRST PGA TOUR WIN IN THE FEBRUARY 1992 NORTHERN TELECOM OPEN ONCE ESTABLISHED JANZEN STAYED THAT WAY HIS 795000 IN EARNINGS PUT HIM NINTH ON THE TOUR'S MONEY LIST LAST YEAR AND HIS 517000 BEFORE LAST WEEK WAS GOOD FOR SEVENTH HE'S THIRD NOW WITH 807000 STILL HIS OPEN VICTORY PUT HIM A GOOD BIT AHEAD OF SCHEDULE I WANTED TO MAKE THE CUT IN ALL FOUR MAJORS THIS YEAR AND FINISH IN THE TOP 10 IN TWO OF THEM SAID HE HIS BIGGEST WIN CAME ON A BALTUSROL COURSE THAT RECEIVED POOR EARLY REVIEWS ON GROUNDS THAT ITS GREENS WERE SLOW FOR AN OPEN AND ITS ROUGH THINNED BY A DRY JUNE BUT LATER RALLIED IN CRITICAL ASSESSMENT AS ITS SUBTLETIES BECAME CLEARER THAT OLD BALTUSROL HELD ITS OWN IN ITS SEVENTH MEN'S OPEN WAS ATTESTED BY THE SCOREBOARD DESPITE JANZEN'S RECORDTYING SCORE AND A SPATE OF SUBPAR EARLY ROUNDS JUST 10 PLAYERS BROKE PAR OF 280 FOR THE 72 HOLES AND IN THE END THE TOURNEY WAS CONTESTED BY BUT TWO PLAYERS JANZEN AND THE VETERAN STEWART THE LATTER WHOSE PERFORMANCE HAS CAUGHT UP WITH THE CELEBRITY HE'S GENERATED BY WEARING KNICKERS AND THE COLORS AND EMBLEMS OF NATIONAL FOOTBALL LEAGUE TEAMS ON COURSE DOES THE NFL RENT UNIFORM SPACE TO THE PGA VAULTED INTO CONTENTION WITH A FOURUNDERPAR 66 ON FRIDAY AND STAYED THERE WITH SATURDAY AND SUNDAY ROUNDS THAT INCLUDED JUST FOUR BIRDIES AND TWO BOGEYS IN THEIR 36 HOLES HE ATTRIBUTED HIS STEADINESS TO MATURITY I'VE COME TO CONSIDER PAR A GOOD SCORE ON ANY HOLE IN AN OPEN HE ELUCIDATED JANZEN BEGAN SUNDAY ONE STROKE UP ON STEWART AND FOUR BETTER THAN THE NEXTCLOSEST PLAYER HE ENDED IT WITH EDGES OF TWO AND FIVE RESPECTIVELY BUT NOT WITHOUT CONSIDERABLE TRAVAIL HIS FINAL ROUND WAS UNCHARACTERISTIC BECAUSE HE SPENT MORE OF IT IN BUNKERS AND ROUGH THAN ON THE FAIRWAYS VISITING ONE OR THE OTHER OF THOSE PURGATORIAL PLACES ON 12 OF THE 18 HOLES IF NOT FOR TWO EXCEPTIONAL RECOVERY SHOTS THE TITLE MIGHT HAVE GONE ELSEWHERE ONE WAS A 10FOOT PUTT THAT SAVED A BOGEY FIVE ON HOLE SEVEN AFTER HE'D DRIVEN INTO A BUNKER AND HIT HIS THIRD SHOT INTO GREENSIDE ROUGH THE OTHER WAS A 205YARD FIVEIRON SHOT THAT FLEW FROM THE ROUGH THROUGH THE BRANCHES OF A TALL AND LEAFY TREE TO THE GREEN TO SET UP A PAR FOUR ON THE 454YARD 10TH THAT WAS VERY LUCKY HE ACKNOWLEDGED I MEANT TO HIT OVER THE TREE BUT ONCE RESCUED JANZEN TURNED BRILLIANT HE SUNK AN 18FOOT PUTT TO BIRDIE THE PARFOUR 14TH AND A 25FOOT CHIP SHOT TO DO THE SAME ON THE PARTHREE 16TH AND ON PARFIVE 18 HE DROVE INTO THE ROUGH RESTRAINED HIMSELF BY PITCHING OUT SAFELY WITH A WEDGE KNOCKED A FOURIRON TO EIGHT FEET FROM THE CUP AND SANK THE BIRDIE PUTT TO MATCH STEWART'S BIRDIE I COULD HAVE KNOCKED IN THAT PUTT ON 18 WITH MY SHOE HE SMILED THE BEST OF THOSE BLOWS WAS THE CHIP IT RECALLED A SIMILAR SHOT WATSON HAD HOLED ON THE 71ST HOLE AT PEBBLE BEACH TO WIN AN OPEN 11 YEARS BEFORE JANZEN SAID HE WATCHED THAT ONE ON TELEVISION AND HIT HIS HAND ON A FAMILYROOM CEILING FAN WHEN HE LEAPED TO CELEBRATE HIS HERO'S TRIUMPH WATSON WATCHED JANZEN'S BLOW ON TV IN THE PRESS TENT DID IT TRIGGER THE SAME MEMORY HE WAS ASKED YES HE ANSWERED POIGNANTLY 9306220006 930622 POLITICS & POLICY DEMANDS ON NEW ORLEANS'S BIG CHARITY' HOSPITAL ARE SYMPTOMATIC OF US HEALTHCARE PROBLEM BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL NEW ORLEANS FOR ARMADELLA KEDRICK A 52YEAROLD BEAUTYPARLOR AIDE THIS CITY'S CHARITY HOSPITAL IS HER DOCTOR SHE GAVE BIRTH TO TWO BABIES HERE AND HAD THEIR CHILDHOOD DISEASES TREATED IN THE EMERGENCY ROOM WHERE SHE NOW SITS WAITING FOR TREATMENT SOME DAY SHE ADDS SHE WILL LIKELY DIE HERE MULTIPLY MS KEDRICK BY A MILLION AND YOU GET SOME IDEA OF THE HEALTHCARE CRISIS FACING LOUISIANA THIS YEAR IT HAS MORE WORKINGAGE PEOPLE WITHOUT HEALTH INSURANCE THAN ANY OTHER STATE FOR MANY OF THEM BIG CHARITY AS THE HOSPITAL IS KNOWN IS THE ONLY MEDICAL CARE PROVIDER THEY EVER SEE THE PROBLEM ISN'T LIMITED TO BIG CHARITY THERE ARE 37 MILLION UNINSURED PEOPLE IN THE US AND MANY OF THEM USE THE LOCAL HOSPITAL AS THE PRINCIPAL SOURCE OF MEDICAL CARE THE GROWING SUBSTITUTION OF A HOSPITAL EMERGENCY ROOM FOR A DOCTOR IS BAD FROM EVERY ANGLE THERE ARE MASSIVE GOVERNMENT COSTS DAYLONG WAITS SHORT TEMPERS AND LITTLE OF THE PREVENTIVE HEALTH CARE THAT CAN KEEP PEOPLE FROM BECOMING ILL IN THE FIRST PLACE AS ONE OF 10 STATEOWNED FREE HOSPITALS BIG CHARITY HAS AN UNUSUAL CONCENTRATION OF PATIENTS WHO DON'T SEE DOCTORS BUT ACCORDING TO A NEW STUDY BY THE AMERICAN HOSPITAL ASSOCIATION THE PROBLEM HAS BECOME ONE OF THE MAJOR SYMPTOMS OF THE HEALTH CRISIS IN THE US AND IT AFFECTS ALL SORTS OF HOSPITALS ACCORDING TO THE US GENERAL ACCOUNTING OFFICE 43 OF THE 96 MILLION AMERICANS WHO VISITED AN EMERGENCY ROOM IN 1990 WERE THERE FOR NONURGENT CONDITIONS THE LONG LINES OF PEOPLE WAITING IN EMERGENCY ROOMS HAVE GROWN BY 25 OVER THE PAST FIVE YEARS LOUISIANA'S HEALTHCARE SYSTEM IS IN A KIND OF DEATH SPIRAL A RECENT REPORT BY THE STATE'S HEALTH CARE COMMISSION NOTES THAT LOUISIANA RANKS AMONG THE LEAST HEALTHY STATES IN THE NATION EVEN THOUGH IT HAS MORE HOSPITAL BEDS AND ABOUT AS MANY DOCTORS PER CAPITA AS THE NATION'S AVERAGE THE SICKER THE POPULACE THE HIGHER THE COST OF HEALTH INSURANCE THE HIGHER THE COSTS THE MORE PEOPLE DROP OUT AND TURN TO BIG CHARITY'S CAVERNOUS BEIGETILED WAITING ROOM ON A RECENT DAY HERE PATIENTS BEGAN LINING UP IN THE HALLWAY OUTSIDE OF THE WALKIN CLINIC AT CHARITY'S EMERGENCY ROOM AT 6 AM BY 330 PM WHEN HEAD NURSE HELEN SAGUL LOCKED THE DOORS TO PREVENT OVERCROWDING MOST OF THE 200 PEOPLE WAITING HAD YET TO SEE A DOCTOR BY 10 PM SOME WOULD BE TOLD TO COME BACK THE NEXT MORNING WHEN YOU KNOW YOU HAVE TO COME HERE AND SPEND A WHOLE DAY WAITING YOU CAN BE REAL SICK BUT YOU JUST KEEP PUTTING IT OFF AND PUTTING IT OFF EXPLAINS MS KEDRICK A PLEASANT ROUNDFACED WOMAN SHE CAME TO HAVE A SUSPICIOUS LUMP ON HER BACK CHECKED AFTER PROCRASTINATING FOR TWO WEEKS OTHERS ALSO PUT OFF VISITS UNTIL THEIR SYMPTOMS WORSEN WHICH PRESENTS A FURTHER CHALLENGE FOR NURSE SAGUL FOR THE PATIENTS AT THIS SPRAWLING MEDICAL MILL THE ORDEAL BEGINS WITH TAKING A NUMBER AS AT A MEAT MARKET MS SAGUL MAKES THE ROUNDS WITH HER STETHOSCOPE AND HER BLOOD PRESSURE CUFF MARKING THE SICKEST RUSH AND THE NEXT SICKEST ASAP FOR AS SOON AS POSSIBLE ONE PROBLEM WITH BIG CHARITY EMERGENCYROOM CARE IS THE LACK OF CONTINUITY FROM ONE VISIT TO THE NEXT ONE OF MS KEDRICK'S DAUGHTERS ONCE CAME DOWN WITH A STRANGE ILLNESS INVOLVING FEVERS HYSTERIA AND EYES ROLLING BACK INTO HER HEAD DURING THE CRISIS SHE MADE MORE THAN 20 VISITS TO THE BIG CHARITY EMERGENCY ROOM GETTING A NEW DOCTOR AND A FRESH DIAGNOSIS NEARLY EVERY TIME FINALLY MS KEDRICK RAN INTO A DOCTOR WHO HAD SEEN HER DAUGHTER BEFORE SHE TOLD ME SHE WAS PLAY ACTING MS KEDRICK RECALLS THE NEXT TIME SHE DID THAT THE DOCTOR TOLD ME TO IGNORE IT MS KEDRICK DID AND HER DAUGHTER'S SYMPTOMS ENDED USING A BIG HOSPITAL LIKE CHARITY FOR PRIMARY HEALTH CARE IS EXPENSIVE THE HOSPITAL ESTIMATES IT COSTS AN AVERAGE OF 548 FOR EACH EMERGENCY ROOM VISIT A VISIT TO A FAMILY DOCTOR WOULD BE QUICKER MUCH CHEAPER AND MORE FOCUSED ON PREVENTIVE CARE NOR IS THE COST IS JUST A LOCAL ISSUE WASHINGTON PUT UP 35 MILLION TO BUILD THE HOSPITAL IN 1938 AND HAS BEEN PAYING BILLS EVER SINCE LAST YEAR IT POURED 1 BILLION INTO LOUISIANA'S HOSPITAL SYSTEM THROUGH MEDICAID AND NOW THE STATE IS LOOKING FOR GREATER FEDERAL SUPPORT MEANWHILE SOME LOUISIANANS CAN'T IMAGINE A HEALTHCARE SYSTEM OTHER THAN HEADING TO BIG CHARITY WHEN THERE IS TROUBLE THE QUICKEST WAY TO GO BROKE IS GOIN' TO A DOCTOR EXPLAINS JOE FOX SMITH A RAILTHIN 62YEAROLD WITH A PERSISTENT COUGH SITTING IN THE BACK OF THE WAITING ROOM HOLDING A PAIR OF DRUMSTICKS HE RECALLS THAT YEARS AGO WHEN HE WORKED IN THE OIL BUSINESS HE HAD HEALTH INSURANCE NOW HE IS A DRUMMER IN A DIXIELAND BAND ON BOURBON STREET AND HAS NO INSURANCE SHELLING OUT THE 150 A MONTH IT WOULD COST TO BUY PRIVATE HEALTH INSURANCE STRIKES HIM AS A WASTE LOOK MAN I NEVER FIGURED I WOULD LIVE THIS LONG HE SAYS CHARITY'S DOCTORS ARE FRUSTRATED WITH THE PLACE MEHDI MOSADEGH ONE OF TWO DOCTORS WHO SEE THE EMERGENCYROOM PATIENTS COMPLAINS THAT WHEN HE ASKS PEOPLE TO RETURN FOR A FOLLOWUP VISIT HALF DON'T OTHERS FAIL TO FOLLOW THE INSTRUCTIONS ON THEIR MEDICINE BOTTLES OTHERS ARE ANGRY WHEN THE DOCTORS DON'T FIND PROBLEMS THERE ARE A LOT OF SCHEMES TO GET AROUND THE LONG WAIT AT CHARITY MR SMITH THE DRUMMER BREEZES IN AT 930 AM TAKES A TICKET THEN GOES HOME FOR A SHOWER AND A NAP HE IS BACK AT 430 PM IN PLENTY OF TIME THEY'RE JUST STARTING ON THE EIGHTTHIRTIES NOW HE EXPLAINS A POPULAR SCHEME FOR BEATING THE CROWD IS TO ARRIVE BY AMBULANCE WHICH ADDS ANOTHER 330 ONTO THE GOVERNMENT'S BILL THEY FIGURE IF THEY COME WHEELING IN WITH AN IV INTRAVENOUS LINE HANGING OUT OF THEM THEY'LL BEAT THE LINE BUT IT DOESN'T WORK SAYS WILLIAM GONZABA MEDICAL CONTROL OFFICER FOR THE CITY'S EMERGENCY MEDICAL SERVICES STILL AMBULANCE CALLS IN NEW ORLEANS HAVE NEARLY DOUBLED DURING THE PAST FIVE YEARS DR GONZABA WHO SPENDS HIS EVENINGS RIDING AMBULANCES WORRIES MORE ABOUT THE PEOPLE WHO SHOULD GO THE HOSPITAL BUT DON'T ONE RECENT NIGHT HE ENCOUNTERED A PREGNANT 17YEAROLD WITH EARLY LABOR PAINS WAITING ON THE PORCH OF A DILAPIDATED PUBLIC HOUSING PROJECT FOR THE AMBULANCE RIDE TO CHARITY SHE HADN'T SEEN A DOCTOR SINCE HER FIRST BIRTH AT BIG CHARITY TWO YEARS BEFORE EVEN THOUGH DOCTORS HAD THEN WARNED HER THAT HER NEXT BIRTH WOULD BE DIFFICULT A FEW MINUTES LATER DR GONZABA PLEADS WITH A GASPING 58YEAROLD MAN SLUMPED IN THE FRONT SEAT OF A BIG WHITE 1968 OLDSMOBILE DIAGNOSING SEVERE EMPHYSEMA DR GONZABA URGES HIM TO GET INTO THE AMBULANCE THE MAN THREE PACKS OF CIGARETTES STUFFED INTO HIS SHIRT POCKET SHAKES HIS HEAD HE OWNS THE CORNER BAR AND SAYS IF HE WINDS UP IN THE WAITING ROOM AT BIG CHARITY THE WOMAN TENDING HIS CASH REGISTER WILL RIP ME OFF LIKE MANY STATES LOUISIANA HAS DECIDED IT CAN'T WAIT UNTIL HEALTHCARE REFORM MATERIALIZES IN WASHINGTON A NEW STATE LAW CALLS FOR A STATEWIDE HEALTH INSURANCE PURCHASING COOPERATIVE THAT WILL TRY TO PERSUADE COMMERCIAL INSURERS TO CUT THEIR RATES IN HALF IN EXCHANGE FOR A LARGE VOLUME OF NEW BUSINESS COMING FROM THE STATE'S 300000 UNINSURED WORKERS MEANWHILE ARNOLD M LUPIN CHAIRMAN OF THE STATE'S HEALTH AUTHORITY IS WORKING ON A PLAN TO REDUCE THE WAITING TIMES AT CHARITY HOSPITAL HIS IDEA IS TO SET UP FIVE SATELLITE CLINICS IN OUTLYING NEIGHBORHOODS HE HOPES THEY WILL PAY FOR THEMSELVES BY CUTTING BACK ON ABUSES OF EMERGENCY ROOM CARE AND BY SPARING THE CITY'S AMBULANCE FLEET SOME WEAR AND TEAR WHEN AND IF PRESIDENT CLINTON DELIVERS ON HIS PROMISE FOR A UNIVERSAL HEALTH INSURANCE PROGRAM THE ENORMOUS PRESSURE ON LOUISIANA'S STATE HOSPITALS WILL LIKELY CONTINUE FOR SOME TIME RELATIVELY FEW OF LOUISIANA'S DOCTORS WORK IN POOR NEIGHBORHOODS AND GETTING THEM THERE WILL REQUIRE A MAJOR REARRANGEMENT AS DR LUPIN PUTS IT WE'RE TREATING ONE MILLION PEOPLE TO THROW THAT MANY PEOPLE INTO THE PRIVATE SECTOR AT ONCE IS IMPOSSIBLE 9306220005 930622 MARKETING & MEDIA NOTED WHO'S NEWS WAYNE LEWELLEN 49 YEARS OLD WAS NAMED PRESIDENT OF DISTRIBUTION AT PARAMOUNT PICTURES' MOTION PICTURE GROUP MR LEWELLEN PREVIOUSLY PRESIDENT OF DOMESTIC DISTRIBUTION NOW WILL ADDITIONALLY WORK ON INTERNATIONAL DISTRIBUTION STRATEGIES AT THE PARAMOUNT COMMUNICATIONS INC UNIT 9306220004 930622 BUSINESS BRIEFS SOUTHERN PACIFIC RAIL CORP SAID ITS SOUTHERN PACIFIC RAILROAD UNIT SIGNED A LETTER OF INTENT TO PURCHASE 50 HIGHHORSEPOWERED LOCOMOTIVES FROM GENERAL MOTORS CORP'S ELECTROMOTIVE DIVISION FOR MORE THAN 60 MILLION MOMENTUM DISTRIBUTION INC PLANS TO SELL TWO TEXTILE SUBSIDIARIES PURE TECH INTERNATIONAL INC AGREED TO ACQUIRE APR PLASTIC PROCESSING INC HEADED BY A FORMER PURE TECH EMPLOYEE TERMS WEREN'T DISCLOSED PERRY DRUG STORES INC WILL ACQUIRE 11 AL PRICE DISCOUNT HEALTH AND BEAUTY AIDS STORES IN THE METROPOLITAN DETROIT AREA FROM ALP ACQUISITION LIMITED PARTNERSHIP FOR 108 MILLION INTEGRATED HEALTH SERVICES INC ACQUIRED PATIENT CARE PHARMACY INC TERMS WEREN'T DISCLOSED HEICO CORP AGREED TO BUY TWO CLOSELY HELD MAGNETIC RESONANCE IMAGING CENTERS IN GEORGIA FOR 9 MILLION IN CASH AND NOTES 9306220003 930622 LEISURE & ARTS BOOKSHELF GOVERNMENT GONE TOO FAR BY DAVID OSTERFELD IN 1984 ELLEN AND JERROLD ZIMAN SPENT THEIR LIFE SAVINGS TO PURCHASE A 200YEAROLD HOUSE IN NEW YORK CITY THAT HAD BEEN CONVERTED INTO AN APARTMENT BUILDING THEIR INTENTION WAS TO RESTORE THE BUILDING AS A SINGLEFAMILY HOME LAWYERS HAD ASSURED THE ZIMANS THAT LOCAL ZONING LAWS ALLOWED THEM TO EVICT THE TENANTS BUT THE LAW SUDDENLY CHANGED AND THE ZIMAN FAMILY SPENT MOST OF THE NEXT SIX YEARS CRAMMED INTO JUST TWO ROOMS WHILE STRANGERS OCCUPIED THE REST OF THEIR HOME EVENTUALLY THE COURTS RULED THAT HAVING SPENT MORE THAN 100000 IN LEGAL FEES THE ZIMANS FELL UNDER THE FINANCIALHARDSHIP PROVISION OF THE LAW AND COULD EVICT THEIR UNWELCOME TENANTS THIS IS JUST ONE OF MYRIAD EXAMPLES MANY WITH LESS HAPPY ENDINGS THAT PUBLICINTEREST LAWYER CLINT BOLICK PRESENTS IN GRASSROOTS TYRANNY CATO INSTITUTE WASHINGTON DC 224 PAGES 2195 MR BOLICK'S THESIS IS THAT OUR FREEDOMS ARE INTEGRALLY LINKED TO FEDERALISM THE CREATION OF COMPETING CENTERS OF POLITICAL POWER BUT TODAY FEDERALISM HAS BEEN SO DISTORTED BY BOTH LIBERALS AND CONSERVATIVES THAT FREEDOM ECONOMIC AND SOCIAL IS IN GREATER JEOPARDY NOW THEN EVER BEFORE FOR EXAMPLE IN 1987 MARY AMAYA WAS INFORMED THAT HER SON WAS A LIKELY CANDIDATE FOR SPECIAL PLACEMENT IN SCHOOL AND THAT SPECIAL PLACEMENT WAS CONTINGENT ON TAKING AN INTELLIGENCE TEST UNFORTUNATELY HER SON COULD NOT TAKE THE TEST BECAUSE HE WAS BLACK AND THE STATE OF CALIFORNIA HAD BANNED ALL IQ TESTS FOR BLACKS HE COULD HOWEVER TAKE THE TEST IF HE REGISTERED AS HISPANIC A FEW YEARS LATER CALIFORNIA STRUCK AGAIN REFUSING TO ALLOW MARY RASMUSSEN TO ADVERTISE HER OKIE GIRL RESTAURANT SINCE OKIE WAS SLANDEROUS THAT RASMUSSEN WAS A NATIVE OF OKLAHOMA WAS DEEMED IRRELEVANT THE WORD TYRANNY ORDINARILY CONJURES UP IMAGES OF GOOSESTEPPING SOLDIERS AND BRUTAL GOVERNMENT BUT TO MR BOLICK THE PRINCIPAL THREAT TO FREEDOM IN AMERICA TODAY COMES NOT FROM THE NATIONAL GOVERNMENT BUT FROM WHAT IS TRADITIONALLY HERALDED BY POLITICAL THEORISTS AS A BULWARK FOR INDIVIDUAL LIBERTY SHIELDING US FROM THE OPPRESSIVE TENDENCIES OF THE NATIONAL LEVIATHAN THE THREAT MR BOLICK ARGUES COMES MAINLY FROM THE MILLIONS OF FACELESS ANONYMOUS APPOINTED BUREAUCRATS OPERATING VIRTUALLY UNIMPEDED AT STATE AND LOCAL LEVELS IT IS TIME MR BOLICK BELIEVES TO TAKE A HARD LOOK AT THE PRESUMPTION FOR LOCALISM WHILE THE CONSTITUTION CONTAINS A PREFERENCE FOR LOCAL GOVERNMENT MR BOLICK NOTES THAT THIS PREFERENCE IS HARDLY UNCONDITIONAL FREEDOM THE FOUNDERS BELIEVED WAS NOT A MATTER OF INVESTING THE RIGHT LEVEL OF GOVERNMENT WITH SOVEREIGN POWERS BUT IN DEVISING THE APPROPRIATE BALANCE BETWEEN GOVERNMENTAL UNITS AND FEDERALISM WAS THE PRINCIPAL VEHICLE FOR IMPLEMENTING THAT DELICATE BALANCE IT WAS AN INTEGRAL COMPONENT OF THE FOUNDERS' FRAMEWORK FOR LIBERTY ACCORDING TO MR BOLICK CONTEMPORARY LIBERALS AND CONSERVATIVES HAVE ABANDONED THE FOUNDERS' LIBERTYBASED JUSTIFICATION FOR THE DIVISION OF POLITICAL POWER TOO OFTEN STATES RIGHTS CONSERVATIVES IGNORE THE CLEAR NINTH AMENDMENT DECLARATION THAT WE HAVE RIGHTS IN ADDITION TO THOSE SPECIALLY MENTIONED IN THE CONSTITUTION AND THE SOCIAL ACTION LIBERALS DISMISS THE 10TH AMENDMENT'S LIMITATION OF GOVERNMENT POWER AS MEANINGLESS THE RESULT IS THAT THE MAJOR CONSTITUTIONAL IMPEDIMENTS TO OPPRESSIVE GOVERNMENT HAVE BEEN SERIOUSLY ERODED GOVERNMENT OFFICIALS ESPECIALLY AT STATE AND LOCAL LEVELS HAVE VIRTUALLY FREE REIGN CLAIMS MR BOLICK AND WITH MORE THAN 82000 LOCAL GOVERNMENTAL UNITS ENCOMPASSING MORE THAN 500000 ELECTED OFFICIALS AND 13 MILLION EMPLOYEES THE US HAS BECOME THE MOST GOVERNED NATION IN THE WORLD BUT FOR MR BOLICK THE NINTH AND 10TH AMENDMENTS TOGETHER WITH THE 14TH ARE CRITICAL FOR A PROPER UNDERSTANDING OF AMERICAN FEDERALISM THE NINTH AMENDMENT RECOGNIZED THE PRACTICAL IMPOSSIBILITY OF COMPILING A COMPLETE LIST OF INDIVIDUAL RIGHTS THE 10TH AMENDMENT ESTABLISHED A PREFERENCE FOR DECENTRALIZED GOVERNMENTAL AUTHORITY AND THE 14TH AMENDMENT PROHIBITED THE STATES FROM VIOLATING THE BILL OF RIGHTS THE RESULT MR BOLICK CLAIMS IS A COHERENT CONSTITUTIONAL FRAMEWORK THAT ESTABLISHED SEVERE LIMITS ON GOVERNMENT AT ALL LEVELS WITH THAT IN MIND MR BOLICK ARGUES ON BEHALF OF A MINIMAL BUT BALANCED GOVERNMENT AT ALL LEVELS IT IS A PLEA TO RETURN TO WHAT HE BELIEVES ARE THE ORIGINAL PRINCIPLES OF THE CONSTITUTION PRINCIPLES THAT HAVE BEEN DISTORTED AND IGNORED OVER THE YEARS BY BOTH LIBERALS AND CONSERVATIVES WHEN A COUPLE CAN HAVE ITS HOME TAKEN BY A LOCAL GOVERNMENT TO MAKE WAY FOR A PRIVATE FACTORY WHEN AN INDIVIDUAL CAN BE PREVENTED BY A CITY INJUNCTION FROM IMPERSONATING SANTA CLAUS IN HIS OWN HOME FOR THE BENEFIT OF TERMINALLY ILL CHILDREN WHEN STATE LEGISLATURES CAN REQUIRE EXISTING BUSINESSES TO OFFER ADDITIONAL SERVICES AND THEN PROHIBIT THEM FROM RAISING PRICES OR MOVING ELSEWHERE WHEN A WOMAN CAN BE SENTENCED TO JAIL FOR HAVING AN ILLEGAL OCCUPANT IN HER HOME WHEN SHE ALLOWED HER GRANDSON TO LIVE WITH HER FOLLOWING THE DEATH OF THE BOY'S MOTHER IT IS TIME TO REAFFIRM THE VITAL IMPORTANCE OF LIMITED GOVERNMENT MR BOLICK'S GRASSROOTS TYRANNY DOES JUST THAT MR OSTERFELD IS A PROFESSOR OF POLITICAL SCIENCE AT ST JOSEPH'S COLLEGE IN RENSSELAER IND 9306220002 930622 WHO'S NEWS KEYCORP'S WATERSTON RESIGNS POST ALLEN IS NAMED SUCCESSOR ALBANY NY JAMES R WATERSTON CHIEF BANKING OFFICER OF KEYCORP RESIGNED AFTER A YEAR AND A HALF ON THE JOB CITING IMPEDIMENTS TO HIS CAREER ASPIRATIONS MY CAREER GOAL IS TO BECOME THE CHIEF EXECUTIVE OFFICER OF A MAJOR BANKING ORGANIZATION MR WATERSTON 52 YEARS OLD SAID IN A STATEMENT SINCE THIS NO LONGER SEEMS POSSIBLE AT KEYCORP I DECIDED TO PURSUE THAT GOAL ELSEWHERE MR WATERSTON FELT INCREASINGLY UNCOMFORTABLE WITH HOW THINGS WERE DONE AT KEYCORP A COMPANY SPOKESMAN SAID WHERE HIS DUTIES DIDN'T GIVE HIM AS MUCH AUTHORITY AS THEY MIGHT HAVE AT OTHER BANK STRUCTURES IN ADDITION KEYCORP OWNS BANKS WIDELY SEPARATED FROM NEW YORK TO THE NORTHWEST AS A RESULT THE GEOGRAPHIC UNITS OF THE BANK DON'T NECESSARILY GET THE CHIEF BANKING OFFICER'S BLESSING BEFORE SOMETHING IS DONE A SPOKESMAN SAID MR WATERSTON WHO ALSO HELD THE POSITION OF GROUP EXECUTIVE VICE PRESIDENT COULDN'T BE REACHED TO ELABORATE ON HIS STATEMENT MR WATERSTON JOINED KEYCORP FROM COMERICA INC A DETROITBASED BANK HOLDING COMPANY JIM WAS INSTRUMENTAL IN MERGER NEGOTIATIONS WITH SEVERAL BANKS THAT HAVE JOINED OUR SYSTEM THE KEYCORP SPOKESMAN SAID GARY R ALLEN 44 PREVIOUSLY PRESIDENT AND CHIEF EXECUTIVE OF KEYCORP'S LARGEST SUBSIDIARY KEY BANK OF NEW YORK WILL SUCCEED MR WATERSTON MR ALLEN OVERSAW THE ACQUISITIONS BY KEYCORP OF THE FORMER EMPIRE FEDERAL SAVINGS & LOAN AND GOLDOME SAVINGS BANK MR ALLEN IS SUCCEEDED BY JAMES P MENZIES 44 KEYCORP'S EXECUTIVE VICE PRESIDENT AND CHIEF CREDIT OFFICER SINCE DECEMBER 1991 KEYCORP WITH MORE THAN 30 BILLION IN ASSETS IS A MULTIREGIONAL BANK HOLDING COMPANY 9306220001 930622 GM PLANS TO SHIFT SOME PRODUCTION TO MICHIGAN FROM PLANT IN MEXICO BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL LANSING MICH GENERAL MOTORS CORP SAID IT PLANS TO MOVE SOME SMALL CAR PRODUCTION TO MICHIGAN FROM MEXICO PLEASING ITS US UNIONS AND PROPONENTS OF FREE TRADE WHILE DOING LITTLE HARM TO MEXICAN WORKERS FLANKED BY THE UNITED AUTO WORKERS UNION'S TOP GM NEGOTIATOR STEPHEN P YOKICH AND MICHIGAN'S GOV JOHN ENGLER GM PRESIDENT JOHN F SMITH JR CONFIRMED GM'S PREVIOUSLY REPORTED PLAN TO SHIFT PRODUCTION OF 70000 TO 100000 CHEVROLET CAVALIERS ANNUALLY OUT OF A PLANT IN MEXICO AND INTO ITS BIG LANSING FACILITY BY 1995 PENDING RATIFICATION OF A NEW LABOR PACT THAT AGREEMENT CONTAINS A SPECIFIC BLUEPRINT FOR THE LANSING FACILITY TO MATCH THE LABOR PRODUCTIVITY OF JAPANESE RIVALS SAID PEOPLE FAMILIAR WITH THE NEGOTIATIONS THE MOVE COULD PUT 800 TO 1000 LAIDOFF LANSING HOURLY EMPLOYEES BACK TO WORK BUT IT WON'T NECESSARILY MEAN LAYOFFS AT THE PLANT IN RAMOS ARIZPE MEXICO THAT BUILDS CAVALIERS FOR MEXICO NOW THE PLANT IS IN LINE TO GET A NEW SMALL CAR WHICH MR SMITH DECLINED TO NAME STILL GM'S ANNOUNCEMENT SCORED TWO HEAVY SYMBOLIC HITS COMING JUST TWO DAYS BEFORE THE OFFICIAL START OF CONTRACT TALKS WITH THE UAW THE ANNOUNCEMENT HIGHLIGHTED MR SMITH'S EFFORTS TO ALLAY THE UAW'S FEARS THAT HIS AGENDA INVOLVES ONLY PAIN FOR THE UNION MR YOKICH PRAISED MR SMITH LIBERALLY IN HIS REMARKS SINCE HE TOOK OVER AS CEO AT GM WE'VE HAD MORE TALK AND MORE WORKING TOGETHER THAN WE'VE HAD IN THE HISTORY OF GM AND THE UAW MR YOKICH DECLARED SEPARATELY GM'S ANNOUNCEMENT DREW PRAISE FROM PROPONENTS OF THE NORTH AMERICAN FREE TRADE AGREEMENT WHO NOW HAVE A HIGHPROFILE EXAMPLE TO USE WHEN ARGUING THAT FREE TRADE WITH MEXICO CAN CREATE JOBS NORTH OF THE RIO GRANDE TOO GM SUPPORTS THE FREE TRADE AGREEMENT WHICH AWAITS A TOUGH RATIFICATION BATTLE IN THE SENATE THIS IS AN EXAMPLE OF WHAT OTHER COMPANIES WILL BE ABLE TO DO UNDER NAFTA UNHINDERED BY MEXICO'S TRADE BALANCING AN LOCAL CONTENT RULES SAID THE MICHIGAN INTERNATIONAL TRADE COALITION A GROUP THAT SUPPORTS THE TRADE ACCORD MR SMITH DISCLAIMED ANY INTENT OF AFFECTING THE AGREEMENT OR THE COMING LABOR TALKS WITH HIS DECISION HE SAID SHIFTING CAVALIER PRODUCTION TO LANSING WASN'T PART OF A TREND OF MOVING PRODUCTION OUT OF MEXICO BUT RATHER A SINGLE BUSINESS DECISION THAT MADE SENSE ONE REASON IT MADE SENSE MR SMITH INDICATED WAS IMPROVING SALES IN THE US MR SMITH SAID GM NOW EXPECTS US LIGHT CAR AND TRUCK SALES TO HIT 14 MILLION VEHICLES FOR ALL OF 1993 UP FROM EARLIER ESTIMATES OF 137 MILLION TOTAL VEHICLE SALES MR SMITH ALSO EXPRESSED OPTIMISM THAT GM WILL BE ABLE TO SELL MORE CAVALIERS IN THE US AND OVERSEAS WHEN A REDESIGNED MODEL HITS THE MARKET THAT'S EXPECTED TO BE IN LATE 1994 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY GM SHARES ROSE 1125 TO 42875 9306220131 930524 ENTERPRISE COLUMBIA SPORTSWEAR ACTS TO ROUT FRAUDS FROM FIELD BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL IN TELEVISION ADS COLUMBIA SPORTSWEAR CO PRETENDS IT IS RUN BY ONE TOUGH MOTHER CHAIRWOMAN GERTRUDE BOYLE DRESSES HER SON IN A COLUMBIA JACKET AND PUTS HIM THROUGH A CAR WASH DOUSING TIM BOYLE THE COMPANY'S PRESIDENT IS SUPPOSED TO DRAMATIZE THE CLOTHING'S WEATHERPROOF PROPERTIES MRS BOYLE'S COMPANY IS JUST AS TOUGH IN REAL LIFE AT LEAST WHEN IT COMES TO FIRMS THAT TRY TO KNOCK OFF ITS PRODUCTS IN THE PAST FIVE YEARS THE SMALL PORTLAND ORE CONCERN SAYS IT HAS SUED OR THREATENED TO SUE FOR TRADEMARK INFRINGEMENT MORE THAN 40 COMPANIES THAT IT CLAIMED WERE SELLING COPIES OF ITS APPAREL COLUMBIA SAYS THAT IN EVERY CASE THE COMPANIES COMPLIED WITH ITS DEMANDS WHAT COLUMBIA IS DOING VERY AGGRESSIVELY SAYS ITS INTELLECTUALPROPERTY LAWYER CHARLES MCCLUNG IS LETTING THE INDUSTRY KNOW THEY'RE ONE OF THE COMPANIES YOU CAN'T COPY TIM BOYLE SAYS HE SPENDS AN HOUR A DAY ADDRESSING KNOCKOFF DISPUTES WITH HIS COMPANY INVESTING MORE THAN 10 MILLION ANNUALLY IN PRODUCT DEVELOPMENT AND ADVERTISING HE SAYS I THINK IT'S TIME WELL SPENT COLUMBIA ILLUSTRATES WHAT SOME SMALL FIRMS MUST DO TO PROTECT THEMSELVES AGAINST COPYCATS WHILE TRADEMARK INFRINGEMENT THREATENS FIRMS OF ALL SIZES IT CAN BE DISASTROUS FOR A SMALL GROWING COMPANY THAT IS STILL TRYING TO MAKE ITS MARK IN THE MARKETPLACE SAYS EDWIN BOBROW PRESIDENT OF BOBROW CONSULTING INC A NEW YORK MARKETINGCONSULTING FIRM KNOCKOFFS CAN CONFUSE CUSTOMERS FORCE DOWN PRICES AND TURN PROPRIETARY PRODUCTS INTO COMMODITIES MR BOBROW SAYS LEFT UNCHECKED SUCH ACTIVITY CAN IMPERIL A COMPANY'S INVESTMENT IN RESEARCH AND DEVELOPMENT AND IN MARKETING AND CAN COST IT MARKET SHARE BUT BECAUSE COPYING THE SUCCESSFUL PRODUCTS OF OTHER FIRMS HAS BECOME A WAY OF LIFE FOR MANY COMPANIES MR BOBROW CAUTIONS FEW SMALL FIRMS CAN AFFORD THE TIME OR MONEY TO POLICE THE WORLD INDEED LAST YEAR THE MEDIAN COST OF LITIGATING A TRADEMARK DISPUTE WAS 159000 ACCORDING TO A SURVEY BY AMERICAN INTELLECTUAL PROPERTY LAW ASSOCIATION AS A RESULT MR BOBROW SAYS DEFENSIVE MEASURES LIKE COLUMBIA'S LEGAL ACTIONS ARE MOST EFFECTIVE AS A SUPPLEMENT TO CONSTANT INNOVATION AND OTHER EFFORTS THAT ARE DIFFICULT TO IMITATE SUCH AS MAINTAINING A HIGH LEVEL OF CUSTOMER SERVICE MORE COMPANIES ARE GOING TO COURT TO PROTECT THEIR TRADEMARKS COPYRIGHTS AND PATENTS FEDERAL LAWSUITS OVER SOCALLED PROTECTED PROPERTY RIGHTS ROSE 124 DURING THE 12 MONTHS ENDED SEPT 30 1992 TO 5830 CASES FROM 5186 A YEAR EARLIER ACCORDING TO THE ADMINISTRATIVE OFFICE OF THE US COURTS PART OF THE REASON IS THAT COMPANIES ARE LIKELIER TO WIN SUCH SUITS LAST JUNE FOR INSTANCE THE SUPREME COURT MADE IT EASIER TO KEEP COMPETITORS FROM COPYING A FIRM'S PRODUCTS OR SERVICES THE COURT RULED UNANIMOUSLY THAT COMPANIES TRYING TO STOP IMITATORS MUST PROVE ONLY THAT THEIR PRODUCT OR SERVICE IS INHERENTLY DISTINCTIVE RATHER THAN UNIQUE THE DECISION RESULTED FROM A 1987 SUIT FILED AGAINST A COMPETING MEXICANRESTAURANT CHAIN BY TEXASBASED TACO CABANA INC COLUMBIA FOUNDED AS A HAT DISTRIBUTOR IN 1938 BY MRS BOYLE'S FATHER DIDN'T FRET ABOUT COPYCATS UNTIL 1986 THAT YEAR HAVING ALREADY EXPANDED INTO CLOTHING FOR HUNTING AND FISHING THE COMPANY TRANSFERRED AN INTERCHANGEABLE DESIGN FEATURE USED IN ITS HUNTING JACKETS TO JACKETS FOR SKIING THE BUGABOO PARKA WHICH BY SKIINDUSTRY STANDARDS IS MODESTLY PRICED AT ABOUT 125 PERMITTED OWNERS TO REMOVE AND REVERSE LINING AND INSULATION TO CREATE THREE OR FOUR JACKETS IN ONE THE IDEA WAS A HUGE HIT WITH THE PUBLIC COLUMBIA SAYS IT SOLD ITS ONEMILLIONTH BUGABOO PARKA LAST YEAR WHILE THE PRIVATELY HELD COMPANY HAS FURTHER DIVERSIFIED ITS PRODUCT LINE THIS YEAR IT INTRODUCED A DENIM COLLECTION CALLED TOUGH MOTHERS THE BUGABOO PARKA REMAINS ITS BESTSELLING ITEM IT NOW MAKES UP 13 OF THE COMPANY'S SALES WHICH IN FIVE YEARS HAVE TRIPLED TO 135 MILLION THE INTERCHANGEABLE PARKAS ARE THE MOST POPULAR JACKET IN THE SKI INDUSTRY SAYS SUSAN MCCOY A SENIOR EDITOR AT SKI MAGAZINE UNFORTUNATELY WITH THE PRODUCT'S SUCCESS CAME A FLOOD OF KNOCKOFFS WHICH COLUMBIA HAS BEEN FIGHTING AGAINST EVER SINCE TO MONITOR THE MARKETPLACE TIM BOYLE INSTRUCTS THE COMPANY'S 50 INDEPENDENT SALES REPRESENTATIVES TO BUY ANY ITEM THEY SEE THAT RESEMBLES A COLUMBIA PRODUCT AND SEND IT DIRECTLY TO HIM COLUMBIA'S 650 FULLTIME EMPLOYEES HELP POLICE THE MARKET TOO ONE POINTED OUT A SUSPECT ITEM FOR SALE IN A NEW SEARS CATALOG MR BOYLE SAYS WHEN HE CONCLUDED THE MERCHANDISE INFRINGED HIS COMPANY'S TRADEMARK HE CALLED SEARS AND LEARNED THAT THE GOODS WERE STILL EN ROUTE FROM A TAIWANESE FACTORY WE GOT SEARS TO CANCEL THE ORDER WHILE THE SHIP WAS STILL AT SEA HE SAYS A SEARS SPOKESMAN COULD NOT RESPOND SPECIFICALLY TO COLUMBIA'S CLAIMS BUT HE SAID THE KNOCKOFF BUSINESS IS ILLEGAL AND WE ARE NOT IN ANY WAY INVOLVED IN IT COLUMBIA ALSO RELIES ON FAR EASTERN FACTORIES WHERE MOST OF COLUMBIA'S CLOTHES AS WELL AS THEIR COPIES ARE MADE TO NOTIFY IT WHEN AN ORDER FOR KNOCKOFFS COMES IN BUT NOT ALL OF ITS SUPPLIERS ARE SO COOPERATIVE AFTER A FALLING OUT WITH A TAIWANESE CONCERN THAT WAS MAKING THE COMPANY'S SKI PARKAS COLUMBIA SWITCHED TO ANOTHER MANUFACTURER SAYS MR MCCLUNG COLUMBIA'S TRADEMARKDISPUTE LAWYER BUT INSTEAD OF DROPPING THE BUSINESS MR MCCLUNG SAYS THE SUPPLIER KEPT MAKING THE COATS AND SELLING THEM ITSELF IT AGREED TO CEASE THE PRACTICE AFTER COLUMBIA FILED SUIT ONE OF THE HANDFUL OF TIMES THAT THE COMPANY HAS ACTUALLY HAD TO GO TO COURT TO BLOCK AN IMITATOR FROM INFRINGING ON ITS TRADEMARK NORMALLY A LETTER THREATENING A LAWSUIT GETS THE JOB DONE MR MCCLUNG SAYS SEE RELATED LETTER LETTERS TO THE EDITOR SECONDARY MEANING' OF SOME TRADEMARKS WSJ JUNE 22 1993 9305240041 YY93 MM06 9306220125 930524 LETTERS TO THE EDITOR AN UNREASONABLE VIEW OF OUR FOUNDERS IN YOUR APRIL 9 EDITORIAL A VISIT FROM MISS MACLAINE YOU CLAIM THAT OUR FOUNDING FATHERS UNDERSTOOD MAN'S NATURE TO BE SPIRITUAL YOU PORTRAYED THEM AS RELIGIOUS MYSTICS WHO EMBRACED FAITH AND PRACTICED OBEDIENCE TO A SUPERNATURAL GOD BASED ON THIS VIEW OF AMERICA'S ORIGINS YOU MAINTAINED THAT RELIGION SHOULD PLAY A VITAL ROLE IN INFLUENCING OUR LIVES INCLUDING SOCIAL AND POLITICAL POLICY PARTICULARLY IN THE PUBLIC SCHOOLS THIS IS AN INTOLERABLE DISTORTION OF HISTORY OUR FOUNDING FATHERS WERE FIRST AND FOREMOST MEN OF REASON THEY EXPLICITLY REPUDIATED RELIGIOUS MYSTICISM IN WORKS SUCH AS THOMAS PAINE'S THE AGE OF REASON AND ETHAN ALLEN'S REASON THE ONLY ORACLE OF MAN ABOVE ALL OUR FOUNDING FATHERS UNDERSTOOD MAN'S NATURE TO BE RATIONAL ONE OF THE GREATEST EXAMPLES OF THEIR ADHERENCE TO REASON TO THE EXCLUSION OF FAITH IS IN A BOOK EDITED BY THOMAS JEFFERSON HE CALLED IT THE LIFE AND MORALITY OF JESUS OF NAZARETH BUT IT CAME TO BE KNOWN SIMPLY AS THE JEFFERSON BIBLE IN IT HE STRIPPED AWAY ALL REFERENCES TO MYSTICISM LEAVING ONLY THE WORDS OF JESUS THESE WORDS HE MAINTAINED WERE NOT REVEALED BY A SUPERNATURAL BEING THE WORDS OF JESUS WERE SUBJECT TO THE SAME RATIONAL SCRUTINY AND CRITICISM ONE WOULD DEVOTE TO THE WORDS OF SOCRATES WHOM THE FOUNDERS ALSO ADMIRED REASON JEFFERSON MAINTAINED IN HIS NOTES ON VIRGINIA NOT FAITH WAS THE ONLY BASIS FOR DISCOVERING THE TRUTH THE IDEA OF A UNIVERSE THAT WAS BEYOND MAN'S ABILITY TO COMPREHEND BY HIS OWN REASONING MIND WAS UNACCEPTABLE TO THE MEN OF THE ENLIGHTENMENT CONSEQUENTLY IN JEFFERSON'S BIBLE THERE WERE NO MIRACLES OR REVELATIONS PURGED FROM IT WERE THE VIRGIN BIRTH DIVINE INTERVENTION THE RESURRECTION THE DIVINITY OF CHRIST ORIGINAL SIN THE TRINITY AND PREDESTINATION NO OUR FOUNDING FATHERS WERE NOT ATHEISTS HOWEVER THE GOD THEY BELIEVED IN WAS A NATURAL NOT A SUPERNATURAL ONE ALTHOUGH THEY WERE MISTAKEN THAT GOD'S EXISTENCE COULD BE PROVED IT IS TO THEIR CREDIT THAT THEY BELIEVED IT HAD TO BE PROVED IN ORDER TO BELIEVE IN HIM THEY TOOK NOTHING ON FAITH THERE WERE REGRETTABLY INCONSISTENCIES IN THEIR VIEW AND THEIR SECULAR DEISTIC MOVEMENT DID NOT LAST BUT THE CONSTITUTION THEY GAVE US DID SURVIVE THEY HAD TO FIGHT AN UPHILL BATTLE AGAINST THE RELIGIONISTS OF THEIR DAY TO GET IT PASSED WHICH IT DID ONLY NARROWLY IN SOME STATES NOW YOU HAVE JOINED HANDS WITH SHIRLEY MACLAINE WHO CLAIMS SHE CHANNELS WITH GHOSTS TO FIGHT AGAIN THE BATTLE LOST TO THE FOUNDERS MORE THAN 200 YEARS AGO THANKS TO AMERICA'S FOUNDERS YOU AND MS MACLAINE ARE FREE TO TRY BUT PLEASE DON'T LIBEL THESE GREAT MEN BY CLAIMING TO FIND SUPPORT FOR YOUR MYSTIC CRUSADE IN THEIR THINKING THEY WERE CHAMPIONS OF REASON PERSONAL HAPPINESS AND INDEPENDENCE AS AGAINST THE RELIGIOUS DOCTRINES OF FAITH SACRIFICE AND OBEDIENCE THANKS TO THEM THIS IS NOT A CHRISTIAN NATION THE IDEA OF RELIGIOUS MYSTICISM AS A GUIDING SOCIAL AND POLITICAL INFLUENCE IS DECIDEDLY UNAMERICAN BUT DON'T TAKE MY WORD FOR IT LISTEN INSTEAD TO THE FATHER OF OUR COUNTRY THE GOVERNMENT OF THE UNITED STATES OF AMERICA IS NOT IN ANY SENSE FOUNDED ON THE CHRISTIAN RELIGION GEORGE WASHINGTON 1796 IN ARTICLE XI OF THE TREATY WITH TRIPOLI YOU MENTION THE RELIGIOUS VIEWS OF THE FOUNDING FATHERS MANY OF THE FOUNDING FATHERS INCLUDING WASHINGTON JEFFERSON AND ADAMS WERE DEISTS DEISM WAS PART OF THE REVOLUTION IN HUMAN THOUGHT RESULTING FROM ISSAC NEWTON'S SCIENTIFIC WORK THAT DENIED INTERFERENCE WITH THE LAWS OF NATURE BY THE CREATOR THE FOUNDERS PUT THEIR FAITH IN REASON AND MISTRUSTED THE RELIGIOUS IMPULSE SUFFICIENTLY TO PROHIBIT CONGRESS FROM MAKING LAWS ESTABLISHING A RELIGION SEE RELATED LETTERS LETTERS TO THE EDITOR FAITH OF OUR FOUNDING FATHERS WSJ JUNE 22 1993 9305240185 YY93 MM06 9306210193 930621 WORK & FAMILY A SPECIAL REPORT ON THE JOB WHAT ABOUT US FAMILYSUPPORT PROGRAMS MAY HAVE A SIDE EFFECT RESENTMENT AMONG CHILDLESS WORKERS BY LAURIE M GROSSMAN AS THE ADAGE SAYS NO GOOD DEED GOES UNPUNISHED JUST ASK THE FOLKS AT CORNING INC THE CORNING NY OPTICALFIBER AND CERAMICPRODUCTS COMPANY WENT ALL OUT TO HELP THE FAMILIES OF ITS EMPLOYEES PAYING FOR CHILDCARE PROGRAMS AND FOR COUNSELING ON CARE FOR ELDERLY RELATIVES BUT THE EFFORTS MADE SOME CORNING WORKERS ANGRY AFTER THE FIRST COUPLE OF YEARS PEOPLE WHO DIDN'T HAVE YOUNG CHILDREN STARTED QUIETLY SAYING WHAT ABOUT US DOES MY PERSONAL LIFE COUNT' RECALLS SONIA WERNER A WORK/LIFE BALANCE CONSULTANT AT CORNING THEN AT SOME OPEN MEETINGS ABOUT BENEFITS THE CHILDLESS SPOKE UP MS WERNER SAYS THEY TOLD MANAGEMENT IT WAS UNFAIR TO OVEREMPHASIZE CHILDCARE ISSUES TO THE DETRIMENT OF SINGLE PEOPLE TO SAY SINGLES SHOULD BE MARRIED TO THE COMPANY AS MANY COMPANIES TRY HARDER TO ACCOMMODATE EMPLOYEES WITH FAMILIES THEY MAY INADVERTENTLY CREATE RESENTMENT AMONG CHILDLESS WORKERS NEARLY TWOTHIRDS OF US WORKERS DON'T HAVE ANY CHILDREN UNDER AGE 18 AND INCREASINGLY RESEARCH SHOWS THESE WORKERS WITHOUT YOUNG CHILDREN ARE FEELING EXPLOITED THE LIST OF GRIEVANCES IS LONG MANY CHILDLESS WORKERS COMPLAIN THAT THEY'RE EXPECTED TO WORK MORE HOURS THAN THEIR COUNTERPARTS WHO HAVE CHILDREN SOME LAMENT HAVING BEEN TRANSFERRED MORE OFTEN AND STILL OTHERS RESENT HAVING TO FORFEIT MORE WEEKENDS DURING THE WORK DAY CHILDLESS WORKERS SAY THEY FREQUENTLY HAVE TO ANSWER THE PHONES AND ABSORB EXTRA WORK TO COVER FOR PARENTS WHO ARRIVE LATE OR LEAVE EARLY TO DELIVER OR RETRIEVE CHILDREN MANY ALSO FEEL THEY LOSE OUT IN BENEFIT PACKAGES THAT FAVOR FAMILIES WITH CHILDREN TOO OFTEN THESE EMPLOYEES BELIEVE THE CHILDREN ARE USED AS A CONVENIENT COPOUT JULIE MILLER AN ADVERTISING COPY WRITER IN ST LOUIS SAYS SHE RESENTS BEING PRESSURED TO VOLUNTEER FOR LOCAL MARKETING GROUPS AFTER HOURS WHILE OTHER WORKERS BEG OFF TO FIX DINNER FOR THE KIDS DOROTHY LAWICKI A HOSPITAL NURSE IN ATLANTA GETS ANGRY BECAUSE OTHER EMPLOYEES WITH SICK CHILDREN FREQUENTLY FLEE IN THE MIDDLE OF THE WORK SHIFT LEAVING HER WITH EXTRA PATIENTS TO TEND KIMBERLY ALLEN AN INTERNALAUDIT DIRECTOR IN DEERFIELD ILL DESPISES ALL THE TYPING SHE MUST DO NEARLY EVERY WEEK BECAUSE OF A SECRETARY'S PERSISTENT ABSENCES FOR CHILDRELATED REASONS IN GENERAL CHILDLESS EMPLOYEES ARE ANNOYED WHEN THEY AREN'T GIVEN THE SAME FLEXIBILITY OR LATITUDE IF YOU DON'T HAVE KIDS IT'S ASSUMED YOU DON'T HAVE A LIFE OUTSIDE THE OFFICE COMPLAINS LORI DEWEERD A SECRETARY IN CHICAGO YOUR FREE TIME ISN'T RESPECTED DIANE MILLS A FLIGHT ATTENDANT BASED IN SAN FRANCISCO FELT OBLIGED TO LIE TO HER EMPLOYER BY CALLING IN SICK SO SHE COULD CARE FOR HER GRANDMOTHER WHO BROKE A HIP FOR CHILDLESS EMPLOYEES SHE SAYS ASKING FOR TIME OFF IN SUCH INSTANCES IS TREATED LIKE A DEMERIT SUCH EXPERIENCES AND ATTITUDES AREN'T ISOLATED ACCORDING TO RECENT SURVEYS OF ABOUT 14000 WORKERS BY HEWITT ASSOCIATES AN EMPLOYEEBENEFITS CONSULTANT IN LINCOLNSHIRE ILL ABOUT 20 OF EMPLOYEES COMPLAIN THAT COWORKERS WITH CHILDREN ARE UNFAIRLY SINGLED OUT FOR HELP PARENTS IN THE WORKPLACE ARE THE ONES GETTING ALL THE SYMPATHY FROM THE BOSS CONTENDS LESLIE LAFAYETTE A HIGHSCHOOL ENGLISH TEACHER IN SUBURBAN SACRAMENTO CALIF LAST SUMMER MS LAFAYETTE STARTED A SUPPORT GROUP CALLED CHILDFREE NETWORK THAT AIMS TO REDRESS WHAT IT VIEWS AS WORKPLACE INEQUITIES THE GROUP HAS ATTRACTED MORE THAN 2000 MEMBERS IN ABOUT 50 CHAPTERS AROUND THE COUNTRY AND MS LAFAYETTE NOW PUBLISHES A QUARTERLY NEWSLETTER NO KIDDING A SIMILAR GROUP FOUNDED BY JERRY STEINBERG IN VANCOUVER BRITISH COLUMBIA NOW BOASTS ABOUT 140 MEMBERS IN THE US THESE INITIATIVES MAY BE SYMPTOMS OF A DEEPER SCHISM IN MANY WORKPLACES EXPERTS SAY BITTERNESS SIMMERS JUST BELOW THE SURFACE PHYLLIS MOEN PROFESSOR OF SOCIOLOGY AND HUMAN DEVELOPMENT AT CORNELL UNIVERSITY IN ITHACA NY WARNS OF THE EMERGENCE OF TWO CLASSES OF WORKERS SHE SUGGESTS THAT EMPLOYEES WITH CHILDREN CONSTITUTE AN INCREASINGLY PRIVILEGED CATEGORY AT THE SAME TIME MORE AND MORE CHILDLESS EMPLOYEES SEETHE WITH RESENTMENT ABOUT SUBTLE FORMS OF DISCRIMINATION IN RESPONSE A FEW COMPANIES HAVE STARTED TO MAKE AMENDS BUT MOST EMPLOYERS STILL HAVEN'T ADDRESSED THE CONCERNS OF CHILDLESS EMPLOYEES AND HARD FEELINGS ABOUND TO THOSE WHO FEEL VICTIMIZED THE UNFAIRNESS HAS SEVERAL DIMENSIONS CONSIDER THE EXPERIENCES OF THESE TYPICAL WORKERS WHO HAVE NO CHILDREN PATRICIA MOLLOY A 36YEAROLD ADMINISTRATIVE ASSISTANT AT A LARGE CONSUMERPRODUCTS COMPANY SAYS SHE OFTEN STAYS TWO HOURS LATE TO PUT TOGETHER MAILINGS FOR SHAREHOLDERS WHILE OTHERS IN THE OFFICE LEAVE TO PICK UP THEIR CHILDREN LAST YEAR AFTER A LATEMAILING EPISODE SHE DIDN'T GET HOME ON HER BIRTHDAY UNTIL ABOUT 9 PM TWO HOURS TOO LATE FOR HER RESERVATIONS AT A FAVORITE LOCAL RESTAURANT MRS MOLLOY'S HUSBAND A FITNESS TRAINER USUALLY EATS DINNER ALONE THAT PATTERN OFTEN SPOILS THE END OF THE DAY FOR HER IT CAUSES TENSION AT HOME WHEN HE HEARS THE BOSS LEFT EARLIER AND WE WERE STUCK IN THE OFFICE SHE SAYS IT DOES GET HIM ANGRY AND THAT UPSETS ME JAMES FINKELSTEIN AN ADMINISTRATOR AT GEORGE MASON UNIVERSITY IN FAIRFAX VA FIGURES HE SPENDS TWO TO FIVE WEEKEND DAYS A MONTH IN THE OFFICE AND USUALLY HE'S THE ONLY ONE THERE MR FINKELSTEIN AND HIS WIFE A PSYCHOLOGICAL COUNSELOR HAVE LITTLE CHANCE TO SPEND TIME TOGETHER DURING THE WORK WEEK SO THEIR WEEKENDS ARE PRECIOUS BUT HIS WEEKEND PLANS OFTEN HAVE BEEN SPOILED BECAUSE CURRENT OR FORMER COLLEAGUES WOULD CARVE OUT AND JEALOUSLY PROTECT TIME WITH THEIR CHILDREN ESPECIALLY ON WEEKENDS HE SAYS FOR EXAMPLE HIS WIFE HAS TO GO TO MUSEUMS AND MOVIES ALONE OR WITH FRIENDS BECAUSE HE'S STUCK ON CAMPUS IT BOTHERS HER MORE THAN IT BOTHERS ME BUT IT STILL BOTHERS ME HE SAYS THE 40YEAROLD MR FINKELSTEIN ALSO REGRETS HAVING MISSED SPENDING TIME ON WEEKENDS WITH FRIENDS FROM SWITZERLAND AND ISRAEL WHO CAME TO VISIT THE COUPLE I HAVEN'T BEEN AS GOOD A HOST AS I WOULD LIKE TO BE HE SAYS SUSAN PISANI A 35YEAROLD MARKETINGSERVICES DIRECTOR FOR A UNIT OF ITT CORP WANTED TO DRIVE THREE HOURS FROM HER ST LOUIS OFFICE TO BE WITH HER PARENTS FOR CHRISTMAS BUT DURING HOLIDAY PERIODS SHE SAYS HER OFFICE DEFERS TO FAMILIES WITH CHILDREN SOMEONE HAS TO BE HERE TO RUN THE OFFICE AND IT'S USUALLY THE PEOPLE WHO DON'T HAVE KIDS WHO END UP STAYING SHE SAYS I STAYED AND PICKED UP THE SLACK ON CHRISTMAS EVE SHE WORKED UNTIL 3 PM LONG AFTER OTHERS HAD DISAPPEARED HER PARENTS IN THEIR 70S MADE THE LONG DRIVE TO STAY WITH HER FOR THE HOLIDAY BUT HER CONDOMINIUM WAS SO SMALL THAT THEY HAD TO STAY IN A HOTEL AND BOTH PARENTS HAD COME DOWN WITH THE FLU WHICH WORSENED DURING THE TRIP SO AFTER BEING IN TOWN LESS THAN 24 HOURS THE PARENTS SHARED A QUICK CHRISTMAS BREAKFAST WITH THEIR DAUGHTER AND SONINLAW AND THEN DROVE STRAIGHT HOME MANY CHILDLESS WORKERS ALSO BELIEVE THEY ARE READIER TARGETS WHEN IT COMES TO TRANSFERS SOMETIMES THEY ARE ASKED TO PULL UP STAKES AND GO ON A MOMENT'S NOTICE YOU'RE MORE ELIGIBLE FOR FOREIGN ASSIGNMENTS THAN IF YOU HAVE CHILDREN IT'S CHEAPER QUICKER AND ALSO MORE LONELY SAYS JEFFREY HANSEN A NATIONAL PROJECT MANAGER AT THE FINANCIALSERVICES UNIT OF HOUSEHOLD INTERNATIONAL INC IN PROSPECT HEIGHTS ILL HE IS SPENDING TWO YEARS ON ASSIGNMENT IN SYDNEY AUSTRALIA AFTER FLYING OUT ON A FRIDAY AND STARTING WORK THE FOLLOWING MONDAY CAROL KIRYLUK WAS TRANSFERRED EIGHT TIMES DURING HER 19 YEARS WITH A MAJOR OIL COMPANY OFTEN SHE WAS MOVED MERE WEEKS AFTER THE SUBJECT OF A TRANSFER HAD BEEN BROACHED WHILE FAMILIES WITH CHILDREN WOULD GET MORE TIME TO ADJUST THE UPROOTING PROCESS FOR ME WAS MORE ABRUPT SHE SAYS AND RESETTLING BECAME A SOLITARY BURDEN THAT WASN'T EASY AFTER THE FIFTH OR SIXTH MOVE SHE SAW HER COLLEAGUES WITH CHILDREN STAYING PUT THE EXPERIENCE SHE NOW BELIEVES GREATLY AFFECTED HER PERSONAL LIFE AND MAY EVEN HAVE HURT HER OWN CHANCES TO START A FAMILY MS KIRYLUK CANCELED HER LONGANTICIPATED TRIP TO THE GALAPAGOS AND MACHU PICCHU FOR A SUDDEN TRANSFER AND GAVE UP MANY A WEEKEND HIKING TRIP FOR WORK WITH SO MANY TRANSFERS AND WITH FRIENDSHIPS ABRUPTLY CUT OFF SHE SAYS SHE HESITATED TO FORM CLOSE RELATIONSHIPS AND SHE FELT ISOLATED FROM SOCIAL GATHERINGS INTENDED FOR COUPLES OR FAMILIES FROM THE OFFICE I GAVE UP VIRTUALLY EVERYTHING TO SUPPORT WHAT I WAS DOING ON THE JOB SHE SAYS IN EFFECT I MARRIED THE COMPANY TO HER DISMAY HER LAST TRANSFER PUT HER BACK ON THE STAFF LEVEL AFTER SHE HAD ALREADY HELD A SENIOR POST WITH 45 PEOPLE REPORTING TO HER IF I HAD IT TO DO OVER AGAIN I'D MOVE LESS SHE SAYS NOW 46 YEARS OLD MS KIRYLUK WORKS AS VICE PRESIDENT OF HUMAN RESOURCES AT TUPPERWARE A UNIT OF PREMARK INTERNATIONAL INC THE NEW JOB ALLOWS HER TO STAY IN ONE BASE WHERE SHE SAYS SHE HAS POTENTIAL FOR ROOTS AS MS KIRYLUK AND OTHERS HAVE DISCOVERED MANY CAREERORIENTED EMPLOYEES WITHOUT CHILDREN MUST CONTEND WITH A DOUBLEEDGED SWORD THE COMMITMENT AND SACRIFICE THAT OFTEN HELP THEM GET AHEAD IN THEIR CAREERS MAY ALSO LEAVE THEM FEELING FAR BEHIND IN OTHER ASPECTS OF THEIR LIVES THEY SEE IT AS DUES PAYING ON THE FAST TRACK SAYS JENNIE FARLEY A PROFESSOR OF INDUSTRIAL AND LABOR RELATIONS AT CORNELL UNIVERSITY THEIR LIVES ARE DISRUPTED MORE AND THEY PAY A HIGH PRICE WE ALL NEED A WORKLIFE BALANCE ONE SOLUTION EMPLOYMENT EXPERTS SAY IS TO CREATE COMPANY BENEFITS THAT APPEAL TO A WIDE RANGE OF LIFESTYLES PROGRAMS THAT DON'T FAVOR PARENTS ARE THE LEAST LIKELY TO BREED RESENTMENT ON THE JOB SAYS CAROL SLADEK A BENEFITS AND COMPENSATION CONSULTANT FOR HEWITT ASSOCIATES IF PARENTS ARE ALLOWED TO TAILOR THEIR WORK HOURS TO CHILDCARE PICKUP TIMES THEN CHILDLESS WORKERS SHOULD BE ABLE TO LEAVE THE OFFICE EARLY TO ATTEND UNIVERSITY CLASSES OR LOOK AFTER A SICK SPOUSE SOME EMPLOYERS ARE BEGINNING TO GET THE MESSAGE IN JANUARY QUAKER OATS CO INTRODUCED A BENEFITS PLAN DESIGNED IN PART TO BE MORE EQUITABLE FOR CHILDLESS WORKERS FIFTEEN EMPLOYEES OF THE CHICAGOBASED FOOD COMPANY INCLUDING THREE WITHOUT CHILDREN WERE RECRUITED TO DEVELOP THE PLAN IT GIVES CHILDLESS WORKERS AN ANNUAL CREDIT OF 300 BECAUSE THEY GENERATE LOWER MEDICAL INSURANCE COSTS FOR THE EMPLOYER THEY CAN USE THE CREDIT TO BUY UP TO THREE EXTRA DAYS OF VACATION DEPENDING ON SALARY OR EXTRA LIFE INSURANCE OR OTHER BENEFITS SPIEGEL INC IN DOWNERS GROVE ILL OFFERS FLEXIBLE HOURS TO EVERYONE KELLY DAILY A SPIEGEL HUMANRESOURCES MANAGER WITH NO CHILDREN HAS TAKEN SEVERAL HOURS OFF IN THE MIDDLE OF THE WORKDAY TO PICK UP FRIENDS AT THE AIRPORT OR TO ATTEND HER NEPHEW'S KINDERGARTEN CHRISTMAS PAGEANT SHE APPRECIATES THE LATITUDE HER BOSSES GIVE HER THEY KNOW I'M NOT AN EIGHTTOFIVE WORKER SAYS MS DAILY WHO USUALLY STAYS UNTIL 7 PM BY BEING FLEXIBLE THEY KNOW I'M GOING TO GIVE 150 BACK CORNING IS ALSO DOING THINGS DIFFERENTLY FOR EXAMPLE THE NAME OF ITS FAMILYSUPPORT PROGRAM HAS BEEN CHANGED TO WORK/LIFE AND SEMINARS THAT APPEAL TO PEOPLE WITH NO CHILDREN HAVE BEEN ADDED SINGLE WORKERS ARE NOW ENCOURAGED TO ORGANIZE THEIR OWN GROUPS FOR SOCIAL OUTINGS AND COMMUNITYVOLUNTEER PROJECTS SOME NEW COURSES OFFER ASSERTIVENESS TRAINING IN ONE SEMINAR CHILDLESS EMPLOYEES PRACTICE EFFECTIVE WAYS TO ASK FOR TIME OFF FOR SOCIAL AND RECREATIONAL NEEDS TAKING ONE MORE STEP CORNING IS ALSO TRAINING ITS MANAGERS TO OFFER FLEXIBLE HOURS TO WORKERS WITHOUT CHILDREN AND TO AVOID DUMPING EXTRA WORK ON THEM SAYS MS WERNER THE CORNING WORK/LIFE CONSULTANT THAT HAS HELPED TO REDUCE JEALOUSY BETWEEN EMPLOYEES MS GROSSMAN IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S ATLANTA BUREAU 9306210192 930621 MARKETING & MEDIA P&G TAKES FIRST STEPS WITH TRAINING PANTS BUT FOCUS IS ABROAD CINCINNATI AFTER FOUR YEARS OF WATCHING ARCHRIVAL KIMBERLYCLARK CORP CORNER THE DOMESTIC MARKET WITH ITS HUGGIES PULLUPS DISPOSABLE TRAINING PANTS PROCTER & GAMBLE CO SAID IT WOULD INTRODUCE ITS PAMPERS TRAINERS IN THE US IN MIDJULY HOWEVER THE COMPANY WILL OFFER THEM IN ONLY ONE US CITY OMAHA NEB WITH NO FURTHER EXPANSION LIKELY FOR SOME TIME P&G INSTEAD APPEARS TO BE CONCENTRATING ITS MARKETING EFFORTS ABROAD WHERE IT DOMINATES THE OVERALL DISPOSABLE DIAPER MARKET AND HAS THE BEST CHANCE OF CHALLENGING ITS ARCHRIVAL'S HUGELY SUCCESSFUL TRAININGPANT PRODUCT WHILE KIMBERLYCLARK HAS A STRANGLEHOLD ON THE DOMESTIC TRAININGPANT MARKET RACKING UP MORE THAN 400 MILLION ANNUALLY IN RETAIL SALES IT IS JUST LAUNCHING INTERNATIONAL EFFORTS AND P&G IS MEETING IT HEADON THE TWO COMPANIES ARE SQUARING OFF IN NORTHERN IRELAND HOLLAND AND GREAT BRITAIN KIMBERLYCLARK HAS A SIZABLE LEAD ON P&G IN CANADA WHERE IT ROLLED OUT PULLUPS NATIONWIDE IN FEBRUARY P&G SAYS IT'S MAKING SALES CALLS IN CANADA NOW WITH THE TRAINERS TO BE AVAILABLE LATER THIS SUMMER P&G ALSO SAYS IT'S TESTING A VARIATION IN JAPAN A P&G SPOKESMAN SAID EARLY FRIDAY THAT THE COMPANY PLANS NO FURTHER DOMESTIC EXPANSION UNTIL EARLY 1994 ANOTHER SPOKESWOMAN LATER RETRACTED THAT BUT WOULDN'T OFFER ANY DATES P&G WHICH HAS BEEN TRYING TO CATCH UP TO KIMBERLYCLARK IN INNOVATION HAS YET TO EXPAND DOMESTIC MARKETING EFFORTS OF ANOTHER KEY PRODUCT ITS NEW PAMPERS ULTRADRY REGULAR DISPOSABLE DIAPER WHICH IS AVAILABLE ONLY IN THE EUGENE ORE AND OMAHA TEST MARKETS THE DIAPER WAS P&G'S COUNTER TO KIMBERLYCLARK'S NEW HUGGIES ULTRATRIM A DIAPER HALF AS THICK AS OTHER DISPOSABLES P&G SAYS IT HAS BEGUN SELLING THE ULTRADRY IN THE UNITED KINGDOM HOLLAND NORTHERN IRELAND AND FRANCE DIAPERS ARE CRITICAL TO THE BOTTOM LINES OF BOTH CONSUMERPRODUCT GIANTS KICKING IN 16 OF P&G'S WORLDWIDE SALES AND 23 OF KIMBERLYCLARK'S 9306210191 930621 POLITICS & POLICY IN CLINTON'S TWOPRONGED PLAN FOR THE ECONOMY DEFICIT REDUCTION IS OVERSHADOWING INVESTMENT BY DAVID WESSEL AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON USED TO TALK A LOT ABOUT DOING WHAT HE SAID NO ONE HAD EVER DONE BEFORE REDUCE THE FEDERAL DEFICIT AND INCREASE PUBLIC AND PRIVATE INVESTMENT AT THE SAME TIME SURPRISINGLY HE SEEMS TO BE HAVING MORE LUCK WITH THE PAIN OF DEFICIT REDUCTION THAN THE PLEASURE OF INVESTING WHILE A REWORKED VERSION OF HIS DEFICITREDUCTION PLAN IS MOVING STEADILY THROUGH CONGRESS MUCH OF HIS INVESTMENT AGENDA THE HEART OF CLINTONOMICS IS NOT MR CLINTON'S ECONOMICSTIMULUS SPENDING PACKAGE WHICH ADMINISTRATION OFFICIALS DESCRIBED AS A DOWN PAYMENT ON THE INVESTMENT PROGRAM IS DEAD SO IS THE INVESTMENT TAX CREDIT THAT WAS DESIGNED TO INDUCE CORPORATE INVESTMENT AND THE SENATE FINANCE COMMITTEE LAST WEEK WATERED DOWN OTHER TAX BREAKS INTENDED TO ENCOURAGE INVESTMENT MEANWHILE ADMINISTRATION OFFICIALS ARE ENGAGED IN WHAT ONE DESCRIBES AS HANDTOHAND COMBAT WITH CONGRESSIONAL APPROPRIATIONS COMMITTEES TO SAVE THE PRESIDENT'S PROPOSALS TO INCREASE GOVERNMENT SPENDING ON INVESTMENTS INCLUDING HIGHTECHNOLOGY RESEARCH AND WORKER TRAINING ALTHOUGH HOUSE APPROPRIATIONS COMMITTEES ARE NODDING IN MR CLINTON'S DIRECTION THEY ARE APPROVING FAR LESS THAN HE SOUGHT ONE KEY SUBCOMMITTEE HAS APPROVED A 500 MILLION INCREASE FOR THE POPULAR HEAD START PROGRAM FOR PRESCHOOLERS ABOUT ONETHIRD OF WHAT THE PRESIDENT SOUGHT AND LABOR SECRETARY ROBERT REICH DOING BETTER THAN SOME OTHER CABINET SECRETARIES PERSUADED THE PANEL TO DOUBLE THE FUNDS AVAILABLE TO RETRAIN DISLOCATED WORKERS BUT THE 11 BILLION ALLOCATION FALLS SHORT OF THE 19 BILLION CLINTON REQUEST MR CLINTON ISN'T COMPLAINING THOUGH IN FACT HE ISN'T TALKING MUCH ABOUT INVESTMENT THESE DAYS THAT'S A BIG CONTRAST TO THE CAMPAIGN WHEN HE PUT FAR MORE EMPHASIS ON THE NEED TO INCREASE PUBLIC INVESTMENT THAN ON DEFICIT REDUCTION CANDIDATE CLINTON ARGUED THAT THE KEY TO IMPROVING LIVING STANDARDS WAS INCREASING PUBLIC INVESTMENT AND OFFERING NEW INCENTIVES FOR PRIVATE INVESTMENT TODAY BOTH THE PRESIDENT AND CONGRESS LOOKING OVER THEIR SHOULDERS AT ROSS PEROT SOUND LIKE THEY'VE GOT THAT DEFICITCUTTING RELIGION THE CONGRESS AS WELL AS THE PRESIDENT HAVE FOR NOW DECIDED TO PLACE THE INVESTMENT AGENDA IN A SECONDARY POSITION TO DEFICIT REDUCTION SAYS ROBERT SHAPIRO OF THE PROGRESSIVE POLICY INSTITUTE WHO HELPED SHAPE THE INVESTMENT AGENDA AS AN ECONOMIC ADVISER TO THE CLINTON CAMPAIGN AND HAS WATCHED IT SHRINK SINCE MR CLINTON ACKNOWLEDGED THE DEFICITREDUCTION IMPERATIVE LAST WEEK WHEN A REPORTER SUGGESTED THAT THE PRESIDENT HAD UNDONE REAGANOMICS BUT HADN'T IMPLEMENTED CLINTONOMICS WE HAD TO CUT BACK ALL SPENDING IN THE FIRST TWO YEARS OF THIS FIVEYEAR BUDGET PERIOD TO DEAL WITH THE FACT THAT THE DEFICIT WAS HIGHER THAN WE THOUGHT IT WOULD BE MR CLINTON EXPLAINED BUT HE ADDED OVER THE LONG RUN WE DO HAVE TO INCREASE INVESTMENT I EXPECT A BIG PORTION OF THE INVESTMENT PROGRAM TO PASS AND I'LL BE SURPRISED IF IT DOESN'T BUT A CENTERPIECE OF HIS PRIVATEINVESTMENT INCENTIVES THE INVESTMENT TAX CREDIT THAT WAS SUPPOSED TO TRIGGER A BURST OF PRIVATE INVESTMENT AND GET THE ECONOMY MOVING ISN'T EVEN ON THE TABLE ANYMORE CONGRESSIONAL WORRIES ABOUT TINKERING WITH THE TAX CODE AND A LACK OF BUSINESS ENTHUSIASM OVERWHELMED ECONOMISTS' ARGUMENTS FOR THE CREDIT AND MR CLINTON WILL HAVE TO FIGHT TO SAVE HIS PROPOSALS FOR SEVERAL OTHER TAX INCENTIVES WHEN THE TAX BILL GOES TO A HOUSESENATE CONFERENCE TO MEET ITS DEFICITREDUCTION GOALS THE SENATE FINANCE COMMITTEE REJECTED MR CLINTON'S PROPOSAL TO CUT CAPITALGAINS TAX RATES ON NEW INVESTMENTS IN CERTAIN SMALL COMPANIES SCALED BACK A HOUSE PROVISION TO ALLOW SMALL COMPANIES TO WRITE OFF EQUIPMENT PURCHASES AND TRIMMED TAX BREAKS INTENDED TO STIMULATE BIGCOMPANY INVESTMENT AND RESEARCH ROBERT SOLOW THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY ECONOMIST WHO INSPIRED MUCH OF THE INVESTMENT AGENDA IS UNHAPPY ABOUT THE UNPOPULARITY OF THE TAX INCENTIVES THE OBJECT OF THE COMBINED POLICY OF DEFICITREDUCTION AND STIMULUS WAS THAT WE SHOULD END UP WITH MORE INVESTMENT THAN WE HAVE NOW FINANCED WITH OUR OWN SAVINGS AND NOT FROM BORROWING FROM ABROAD THE NOBEL LAUREATE SAYS IF YOU GET THE INVESTMENT WITHOUT THE SAVINGS YOU RUN THE RISK OF OVERHEATING THE ECONOMY BUT IF YOU GET THE SAVINGS WITHOUT THE INVESTMENT YOU RUN THE RISK OF UNDERHEATING THE ECONOMY WHY THE CONGRESS AND THE PUBLIC DON'T UNDERSTAND THAT WHY CLINTON HASN'T BEEN ABLE TO GET THE MESSAGE ACROSS I'M AT A LOSS TO UNDERSTAND BUT WHILE THE THE BIG PICTURE WAS CLEAR TO MR SOLOW BUSINESS FOCUSED ON THE DETAIL AFTER DECIDING THAT THE INVESTMENT TAX CREDIT WAS TOO SMALL AND TOO COMPLICATED TO DO THEM MUCH GOOD BUSINESS CONCENTRATED ITS LOBBYING ON SHRINKING VARIOUS CORPORATE TAX INCREASES IN THE CLINTON PLAN AND ON CAPITOL HILL POLITICIANS FIND IT SAFER TO TALK ABOUT SAVING MONEY THAN INVESTING IT WHEN THE HOUSE CONSIDERED SPENDING BILLS FOR THE TREASURY AND POSTAL SERVICE FRIDAY A FLIER CIRCULATED AMONG MEMBERS FOCUSED ON CUTS IN STAFF AND ADMINISTRATIVE COSTS ONLY AT THE BOTTOM WAS THERE A MENTION OF NEW MONEY FOR LAW ENFORCEMENT AND DRUG INTERDICTION WE'LL TALK ABOUT INVESTMENTS BUT WE'RE IN A POSITION OF FIRST HAVING TO SHOW THAT WE'VE PUT IN PLACE THE FIVEYEAR SAVINGS WE'VE PROMISED SAYS REP VIC FAZIO OF CALIFORNIA A MEMBER OF THE HOUSE DEMOCRATIC LEADERSHIP WE HAVE SUCH A CREDIBILITY GAP THAT'S NOT EXACTLY MUSIC TO THE EARS OF THE NATION'S MAYORS WHO GATHERED IN NEW YORK LAST WEEK AND COMPLAINED THAT CONGRESS IS BLOCKING FUNDS THEY SORELY NEED TO REBUILD URBAN INFRASTRUCTURE WILLIAM ALTHAUS THE REPUBLICAN MAYOR OF YORK PA BLASTED GOP SENATORS FOR AN ACT OF PARTISAN OBSTRUCTIONISM THAT KILLED MR CLINTON'S ECONOMIC STIMULUS AND ATLANTA MAYOR MAYNARD JACKSON SAID JAPAN IS SPENDING MORE AND MORE ON INFRASTRUCTURE WHILE CONGRESS WHITTLES DOWN MR CLINTON'S INVESTMENT PROPOSALS WHO ARE WE KIDDING WE ARE IN A GLOBAL MARKETPLACE WHERE OUR COMPETITIVENESS AND OUR PRODUCTIVITY ARE SCRAPING BOTTOM HE SAID ALTHOUGH THE DEFICITREDUCTION BILL WITH ITS TAX INCREASES AND MONEYSAVING CHANGES TO BENEFIT PROGRAMS HAS BEEN GETTING ALL THE HEADLINES THE APPROPRIATIONS COMMITTEES QUIETLY HAVE BEGUN THE ANNUAL RITUAL OF DIVVYING UP FEDERAL SPENDING TO GET MONEY FOR HIS INVESTMENT PRIORITIES MR CLINTON MUST PERSUADE THEM TO CUT OTHER PROGRAMS BUT MEMBERS OFTEN CARE DEEPLY ABOUT EXISTING PROGRAMS REP DAVID OBEY A CLINTON BACKER FOR INSTANCE SEES MR CLINTON'S NATIONALSERVICE INTIATIVE AS DIVERTING FUNDS FROM HIGHER EDUCATION MY PRIORITY WILL ALWAYS BE EXISTING PROGRAMS OVER THAT THE WISCONSIN DEMOCRAT SAYS MR CLINTON DIDN'T MAKE IT EASY BY SUBMITTING SPENDING REQUESTS FOR FISCAL 1994 WHICH BEGINS OCT 1 THAT EXCEED THE MONEY AVAILABLE TO THE APPROPRIATIONS COMMITTEES BY ABOUT 7 BILLION AND THEN FAILING TO SPELL OUT WHERE HE WANTED TO CUT SPENDING TO ALLOW FOR HIS INITIATIVES THE ADMINISTRATION IS WORKING WITH THE SUBCOMMITTEES TO MAKE ROOM FOR THE INVESTMENTS WITHIN THE OBVIOUS CONTRAINTS THAT THEY ARE FACING A SPOKESMAN FOR WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAYS IT HAS BEEN VERY COOPERATIVE AND THE ADMINISTRATION IS DOING VERY WELL UNDER THE CIRCUMSTANCES THE TRADEOFFS ARE CLEAREST IN THE HOUSE SUBCOMMITTEE THAT DIVIDES UP NEARLY 88 BILLION FOR SPACE HOUSING ENVIRONMENTAL AND VETERANS PROGRAMS THE PANEL BEGINS WITH ABOUT 14 BILLION LESS THAN THE PRESIDENT'S TOTAL REQUEST AND IN THE AFTERMATH OF LAST WEEK'S WHITE HOUSE DECISION TO REVAMP THE SPACE STATION LAWMAKERS MUST COME UP WITH ALMOST 400 MILLION MORE THAN THEY HAVE ALLOTTED MOREOVER THE SAME SUBCOMMITTEE HAS YET TO BUDGET ANY OF THE 394 MILLION REQUESTED BY THE PRESIDENT FOR HIS NATIONALSERVICE INITIATIVE PRESSED TO COME UP WITH THE DOLLARS LAWMAKERS WILL ALMOST CERTAINLY RAID THE NATIONAL SCIENCE FOUNDATION ACCOUNT BUT THE FOUNDATION ALREADY FUNDED BELOW THE PRESIDENT'S REQUEST IS ANOTHER ONE OF MR CLINTON'S INVESTMENT PRIORITIES LONG BEFORE MR CLINTON'S ARRIVAL MANY HAD INVESTED THEIR OWN POLITICAL CAPITAL IN FAVORED PROGRAMS THE NATIONAL INSTITUTES OF HEALTH WHICH HAVE IMMENSE INFLUENCE IN CONGRESS WILL GET NEARLY 269 MILLION MORE UNDER THE HOUSE BILL THAN MR CLINTON PROPOSED LEAVING THAT MUCH LESS FOR HEAD START AND THE COMMITTEE SHELVED MR CLINTON'S REQUEST FOR INITIAL CONSTRUCTION FUNDS FOR A NEW 3 BILLION ADVANCEDNEUTRON RESEARCH REACTOR EVEN AS MEMBERS RESTORED MILLIONS TO PROTECT OTHER RESEARCH PROGRAMS SLATED FOR TERMINATION IN THE SAME FASHION THE TRANSPORTATION SUBCOMMITTEE POSTPONED FUNDING FOR THE ADMINISTRATION'S HIGHSPEED RAIL INITIATIVE UNTIL A SEPARATE COMMITTEE AUTHORIZES THE PROGRAM BUT THAT DIDN'T STOP MEMBERS FROM THEN USING UP ALL THEIR AVAILABLE DOLLARS INCLUDING HUNDREDS OF MILLIONS FOR PAROCHIAL HIGHWAY PROJECTS BUT ROGER ALTMAN DEPUTY TREASURY SECRETARY SAYS THE ADMINISTRATION ISN'T DISCOURAGED HE COUNSELS PATIENCE THE INVESTMENT AGENDA IS A FOURYEAR AGENDA IT'S NOT A ONEYEAR AGENDA HE SAYS 9306210190 930621 WORK & FAMILY A SPECIAL REPORT GETTING BY RUSH HOURS FOR JACINTA AND SAM MATHIS HAVING IT ALL MEANS DOING IT ALL WITH BARELY ENOUGH TIME TO REST BY JOAN E RIGDON ORLANDO FLA IN A SUBDIVISION HERE DOWN THE FREEWAY FROM UNIVERSAL STUDIOS THE LIGHTS ARE OUT IN ALL THE LOOKALIKE HOUSES EXCEPT ONE JACINTA MATHIS MOTHER OF TWO WIFE AND COMMERCIALCONTRACTS LAWYER HAS RISEN AT 3 AM TO STUDY CASE LAW FOR TWO HOURS THESE HOURS ARE THE ONLY ONES SHE HAS TO CONCENTRATE ON HER REAMS OF READING MATERIAL OR DO HER SHARE OF THE DISHES AND HOUSEWORK ONLY SIX MONTHS INTO HER NEW JOB AT THIS CITY'S LARGEST LAW FIRM MRS MATHIS IS OUT TO MAKE HER MARK LOGGING 60 TO 70 HOURS A WEEK IT'S A CAREER SHE AND HER HUSBAND SAM PAID FOR DEARLY SPENDING NEARLY 12000 IN TUITION AND ENDURING NEARLY THREE YEARS OF A COMMUTER MARRIAGE SO SHE COULD EARN HER DEGREE I HAVE A CAREER NOW SHE SAYS IT'S MORE THAN JUST A JOB JUGGLING THAT WITH SEATS ON FOUR CIVIC ORGANIZATIONS A SPORTS COMMISSION THE CHAMBER OF COMMERCE A PUBLICSCHOOLS FOUNDATION AND A JUDICIAL NOMINATING COMMISSION TEACHING A FINANCE CLASS LEADING HER NINEYEAROLD DAUGHTER'S BROWNIE TROOP AND CHAUFFEURING HER TWOYEAROLD SON TO DAY CARE REQUIRES A BINDERSIZED CALENDAR HER BRIEFCASE IS SO BIG THAT IT STRETCHES THE REGULATIONS FOR CARRYON LUGGAGE HARRIED HUSBAND HER HUSBAND IS HARRIED TOO AN ARCHITECT WHO COORDINATES THE DESIGN AND CONSTRUCTION OF GENERAL MILLS RESTAURANTS RED LOBSTER FOR INSTANCE HE WAKES UP AT 530 AM MOST WEEKDAYS AND WORKS UNTIL 5 PM HE IS PRESIDENT OF TWO BOARDS FOR AN EMPLOYEE ASSOCIATION AND AN AFFORDABLE HOUSING GROUP AND SITS ON TWO OTHERS FOR A CHILDREN'S RANCH AND A HOMELESS COALITION HE HELPS HIS WIFE TEACH THE FINANCE COURSE ON TUESDAY NIGHTS SHARPENS HIS SPEAKING SKILLS AT A TOASTMASTER'S CLUB WEDNESDAY MORNINGS AND PICKS UP THE CHILDREN FROM DAY CARE AND SCHOOL HE KEEPS IT ALL TOGETHER WITH TWO COMPUTERIZED CALENDARS THE PRICE LIKE DUALCAREER COUPLES ELSEWHERE THE MATHISES ARE FINDING IT TAKES SUPERHUMAN EFFORT TO BALANCE THEIR CAREERS AND FAMILY THE AVERAGE COUPLE SPENDS ONLY 19 HOURS A DAY WITH THEIR CHILDREN COMPARED TO 10 HOURS FOR WORK AND COMMUTING ACCORDING TO PRIORITY MANAGEMENT SYSTEMS INC A MANAGEMENT CONSULTING FIRM BASED IN BELLEVUE WASH THE MATHISES ARE NO EXCEPTION MOST DAYS THEY SEE THEIR CHILDREN JACINTA CAMILLE AND ELLIOTT FOR AN HOUR IN THE MORNING AND ONE OR TWO HOURS IN THE EVENING ON TUESDAYS WHEN THEY TEACH THEIR EVENING FINANCE CLASS MRS MATHIS SEES HER CHILDREN ONLY IN THE MORNING AND THAT TIME IS SPENT RUSHING OUT THE DOOR WEEKDAY DINNERS TEND TO BE STOUFFER'S FROZEN DOMINO'S DELIVERED OR MCDONALD'S BEHIND THE WHEEL WE PROBABLY DON'T PLAN MEALS AS WELL AS WE SHOULD MR MATHIS SAYS WHEN MRS MATHIS IS PREPARING FOR A TRIAL OR MR MATHIS IS NEGOTIATING WITH CONTRACTORS ON DEADLINE THEY HAVE TO THINK TWICE ABOUT DROPPING THINGS BECAUSE A CHILD DOESN'T FEEL WELL ONE THURSDAY IN APRIL MR MATHIS HAD TO CHOOSE BETWEEN TAKING HIS DAUGHTER HOME FROM SCHOOL TO NURSE HER UPSET STOMACH OR MEETING WITH AN ARCHITECT AND SUBCONTRACTORS TO PREVENT A COSTLY PROJECT DELAY GUESSING CORRECTLY THAT JACINTA CAMILLE HAD ONLY A MILD STOMACH ACHE MR MATHIS COMPROMISED BY TAKING HER A BOTTLE OF PEPTOBISMOL ON HIS LUNCH BREAK BUT IT WASN'T EASY TO SAY NO TO HER REQUEST WE ARE CONCERNED AT TIMES HOW SHE RESPONDS TO THAT HE SAYS TO MAKE UP FOR HECTIC TUESDAYS THE MATHISES SPEND MOST OF THE REST OF THE WEEK AT HOME WHICH IS A BIT SQUEEZED MRS MATHIS USUALLY GETS HOME AROUND 630 AND GOES TO BED BY 930 AN HOUR AFTER HER DAUGHTER DOES MR MATHIS PICKS UP THE CHILDREN GETS THEM HOME BY ABOUT 6 PM AND STAYS UP UNTIL MIDNIGHT THAT MEANS ALL FOUR ARE USUALLY TOGETHER FOR JUST TWO EVENING HOURS FROM 630 TO 830 THEY USE THE TIME TO HAVE SITDOWN DINNERS CHAT ABOUT THEIR DAYS AND HELP JACINTA CAMILLE WITH HOMEWORK OR CRISES LIKE THE TIME A CLASSMATE CALLED HER A GIRL DOG AT SCHOOL INSTEAD OF CHANNEL SURFING WE ARE WITH ONE ANOTHER MRS MATHIS SAYS SHE MAKES DATES WITH HER DAUGHTER ONCE EVERY WEEK OR TWO SO THEY CAN GO OUT ALONE AND TALK OR JUST HAVE FUN GETTING THEIR HAIR DONE ALSO MRS MATHIS GOES ON SOME OF HER DAUGHTER'S FIELD TRIPS MAKING UP FOR THE LOST TIME BY WORKING LATE INTO THE EVENING IF SOMETHING MUST BE SQUEEZED OUT OF THE MATHISES' TREACHEROUS SCHEDULE THEY WORK HARD TO MAKE SURE IT ISN'T THEIR CHILDREN IN GENERAL EVENING BOARD MEETINGS ARE OUT CHOIR PRACTICE WAS DROPPED WHEN IT INTERFERED WITH JACINTA CAMILLE'S HEAVY HOMEWORK NIGHTS SOMETIMES THE MATHISES WRENCH THEIR CALENDARS AROUND TO ATTEND THEIR CHILDREN'S MOST IMPORTANT EVENTS ONE WEEKEND IN APRIL MRS MATHIS WAS SUPPOSED TO FLY TO INDIANAPOLIS FOR A SPORTS COMMISSION BUSINESS TRIP PREPARE A PLEADING FOR A BIG CLIENT AND LEAD HER BROWNIE TROOP ON A CAMPING TRIP HER DAUGHTER'S FIRST EVER SHE WENT ON THE BUSINESS TRIP FLEW BACK SATURDAY CAUGHT UP WITH THE BROWNIES THAT AFTERNOON CAMPED WITH THEM THROUGH MONDAY AND SLEPT THE EVENING TO FINISH THE PLEADING SHE WOKE UP AT MIDNIGHT DROVE TO THE OFFICE AND WORKED UNTIL 530 AM TUESDAY THEN SHE WENT HOME FOR A 30MINUTE NAP HELPED MR MATHIS GET THE KIDS UP AND RETURNED TO WORK FOR A FULL DAY MRS MATHIS WOULD RATHER LOSE SLEEP THAN MISS TIMES LIKE THAT BEING SO BUSY MEANS THE TIME YOU DO SPEND IS PRECIOUS SHE SAYS MR MATHIS WHOSE OWN FATHER LEFT HOME WHEN HE WAS TWO YEARS OLD TRIES TO SPEND MOST EVENINGS WITH HIS CHILDREN EVEN IF IT MEANS GOING BACK TO WORK AFTER A BALL GAME I DON'T HAVE A LOT OF TIME WITH MY KIDS AND IF I HAD TO WORK LATE I'D GET HOME AFTER THEY WERE ASLEEP HE SAYS I'D QUIT GENERAL MILLS RIGHT NOW IF IT MEANT KEEPING MY FAMILY TOGETHER A LOOK AT ONE OF THE MATHISES' DAYS SHOWS THE KIND OF HERCULEAN EFFORT REQUIRED TO HAVE IT ALL IT'S A TUESDAY THE NIGHT THEY TEACH THEIR FINANCE CLASS BUT THE DAY BEGINS LIKE ALL OTHERS WHILE HER HUSBAND IS AT THE SINK MRS MATHIS PUTS HER BOOKS AWAY FINDS SOME WHITE OVERALLS THAT JACINTA CAMILLE NEEDS FOR AN ART PROJECT AT SCHOOL FOLDS A LOAD OF LAUNDRY AND SETS OUT A GIFT FOR HER DAUGHTER BASEBALL CARDS FROM A SPORTSCOMMISSION DINNER SHE ATTENDED THE EVENING BEFORE BREAKFAST HAPPENS IN SHIFTS SINCE MRS MATHIS HAS TO IRON HER SUIT JACINTA CAMILLE'S HAIR NEEDS BRAIDING AND ELLIOTTTHE WILD CARD IN AN OTHERWISE REGIMENTED SCHEDULE CRIES AND TRIES TO JUMP OFF HIS SEAT AT THE TABLE AS SOON AS HE IS PUT THERE WE NEVER KNOW HOW HE'S GOING TO WAKE UP MR MATHIS SAYS ONLY A FEW MINUTES OF CUDDLING WILL DO AND MRS MATHIS IS HAPPY TO DO IT USING THE TIME TO GET HER OWN QUICK REST THAT SHAVES TWO MINUTES OFF HER SCHEDULE SHE WHISKS ELLIOTT INTO HER ROOM AND EMERGES WITH BOTH OF THEM DRESSED BEFORE RUNNING OUT THE DOOR SHE HAS ENOUGH TIME TO TELL JACINTA CAMILLE THAT SHE CAN ONLY TAKE SOME OF HER BASEBALL CARDS TO SCHOOL AND TO REMEMBER TO PUT ON STOCKINGS OR SOCKS BEFORE PUTTING ON HER SHOES SHE HAS 45 MINUTES TO DROP OFF ELLIOTT AT DAY CARE AND MAKE HER MEETING MR MATHIS YELLS AFTER HER TO LEAVE THE BOY'S CAR SEAT AT DAY CARE ON HER WAY TO DOWNTOWN ORLANDO MRS MATHIS DISCOVERS THAT HER HEM IS UNRAVELED THIS CANNOT HAPPEN TO ME NOT AT THE CITRUS CLUB SHE RECALLS THINKING SHE SAVES THE THREAD BORROWS A NEEDLE FROM ELLIOTT'S DAY CARE AND SEWS AT THE STOPLIGHTS BACK AT HOME MR MATHIS WEARING AN APRON OVER HIS SUIT IS TRYING TO PUMP UP THE BACK TIRE OF JACINTA CAMILLE'S BICYCLE SO SHE CAN RIDE TO SCHOOL WITH A FRIEND THE PUMP IS BROKEN SO HIS DAUGHTER WEARING A PINK DRESS GOES BACK INTO THE HOUSE TO CANCEL HER FIRST APPOINTMENT OF THE DAY AFTER TWO YEARS OF ANSWERING THE PHONES WHEN HER MOTHER HAD A PRIVATE PRACTICE CAMILLE LESS THAN FOUR FEET TALL IS ALL BUSINESS I CAN'T RIDE TO SCHOOL BECAUSE MY TIRE'S FLAT SHE EXPLAINS TO HER FRIEND'S ANSWERING MACHINE THEN SHE STANDS IN THE KITCHEN WAITING FOR HER FATHER DISTRACTED HE STARTS TO WALK HER BACK OUT TO THE GARAGE TO HER BICYCLE BEFORE REALIZING HE HAS ALREADY TRIED THAT HE DRIVES HER TO SCHOOL INSTEAD THE BACKTOBACK MEETINGS MAKE IT HARD FOR HER TO BREAK AWAY FOR HER CHILDREN ONE RECENT DAY SHE DID LEAVE WORK EARLY BECAUSE JACINTA CAMILLE COMPLAINED OF A STOMACH ACHE BUT LATER THAT DAY JACINTA CAMILLE ASKED FOR PERMISSION TO PLAY THAT STOMACH ACHE WAS OF QUESTIONABLE ORIGIN MRS MATHIS SAYS ONLY PARTLY AMUSED BUT I WANT HER TO FEEL FREE TO CALL ME EVEN IT IS OF QUESTIONABLE ORIGIN MORE THAN 10 MILES AWAY MR MATHIS IS GATHERING LEASE AGREEMENTS AND OTHER LEGAL DOCUMENTS FOR CONTRACTORS WHO ARE BUILDING A NEW RESTAURANT IN TEXAS ONE PRESSING PROBLEM A RESTAURANT'S SEWAGE SYSTEM MUST BE REDESIGNED SO IT TIES INTO A CITY LINE MR MATHIS SPENDS PART OF HIS DAY NEGOTIATING WITH BUILDINGDEPARTMENT OFFICIALS HIS CONTRACTOR AND AN ENGINEER ON THE PROJECT WHEN MRS MATHIS CALLS SHE SAYS SHE FORGOT TO LEAVE ELLIOTT'S CAR SEAT AT DAY CARE TSK TSK TSK WE'RE GOING TO HAVE A CHILD AT RISK MR MATHIS SAYS WHAT'S MORE HIS WIFE HASN'T REVIEWED THE EVENING'S FINANCECLASS LESSON INSIDE ELLIOTT IS WAITING WITH A PURPLE SNAKE HE MADE IN ART CLASS HIS BASEBALL CAP STILL FIRMLY PERCHED ON HIS HEAD HIS WRITTEN REPORT SAYS HE HAS NAPPED FOR TWO HOURS ON THE WAY OUT HE STARTS TEARING UP HIS ART WORK FOR FUN LET'S GO GET SISTER MR MATHIS SAYS LOADING HIM INTO THE CAR THIS IS HIS ONLY CHANCE ON TUESDAYS TO TALK TO JACINTA CAMILLE ABOUT HER DAY AND HER HOMEWORK MS RIGDON IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S PITTSBURGH BUREAU 9306210189 930621 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT TRUMP PLAZA FUNDING INC 330 MILLION OF FIRST MORTGAGE NOTES DUE JUNE 15 2001 WERE PRICED AS 10 7/8 S AT 98693 TO YIELD 11125 ACCORDING TO MCM CORPORATEWATCH THE ISSUE WHICH WAS INCREASED IN SIZE FROM A PLANNED 315 MILLION IS NONCALLABLE FOR FIVE YEARS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO SEPARATELY A 60 MILLION ISSUE OF TRUMP PLAZA HOLDING ASSOCIATION PAYINKIND NOTES DUE JUNE 15 2003 WAS PRICED AT PAR TO YIELD 125 THE ISSUE IS NONCALLABLE FOR FIVE YEARS RATED CAA BY MOODY'S AND TRIPLECPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO FEDERAL HOME LOAN MORTGAGE CORP 200 MILLION OF DEBENTURES DUE JULY 2 2003 WAS PRICED AT PAR TO YIELD 639 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR THREE YEARS WAS PRICED AT A SPREAD OF 045 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS TEXAS UTILITIES CO A 1445 MILLION TWOPART ISSUE OF SECURED FACILITY BONDS WAS PRICED THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART 244 MILLION DUE JULY 1 2001 WAS PRICED AT PAR TO YIELD 662 THE ISSUE HAS A SEVENYEAR AVERAGE LIFE AND WAS PRICED AT A SPREAD OF 108 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE SECOND PART 1201 MILLION DUE JAN 1 2015 WAS PRICED AT PAR TO YIELD 746 THE ISSUE HAS A 15YEAR AVERAGE LIFE AND WAS PRICED AT A SPREAD OF 155 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE BOTH ISSUES ARE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P LIBBEY INC PRICED ITS INITIAL PUBLIC OFFERING OF 15 MILLION SHARES AT 13 A SHARE THE COMPANY A UNIT OF OWENSILLINOIS INC SAID THE OFFERING REPRESENTS 100 OF ITS SHARES ALL OF WHICH ARE CURRENTLY HELD ITS PARENT SAVOY PICTURES ENTERTAINMENT INC 75 MILLION OF CONVERTIBLE SUBORDINATED DEBENTURES DUE JULY 1 2003 WERE PRICED AT PAR TO YIELD 7 THE DEBENTURES ARE CONVERTIBLE INTO COMMON STOCK AT 1860 A SHARE REPRESENTING A 20 CONVERSION PREMIUM OVER LAST THURSDAY'S CLOSING PRICE ALLEN & CO IS MANAGER OF THE OFFERING FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1993126 IS BACKED BY THE AGENCY'S 15YEAR 7 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 200 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993124 IS BACKED BY IS BACKED BY FANNIE MAE STRIPPED MORTGAGEBACKED SECURITIES TRUST 187 WHICH IS IN TURN BACKED BY FANNIE MAE 8 1/2 MORTGAGE SECURITIES FEDERAL NATIONAL MORTGAGE ASSOCIATION 1247 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES WERE OFFERED BY FIRST UNION SECURITIES INC AND JP MORGAN SECURITIES THE OFFERING SERIES 1993125 IS BACKED BY THE AGENCY'S PRINCIPALONLY STRIPPED MORTGAGE SECURITIES WESTERN FINANCIAL SAVINGS BANK 175 MILLION OF AUTO LOAN ASSETBACKED CERTIFICATES WAS PRICED IN TWO PARTS THROUGH SOLE UNDERWRITER DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH THE 161 MILLION ISSUE OF CLASS A1 CERTIFICATES WAS PRICED WITH A 470 COUPON AT 9987488 TO YIELD 480 A 59BASISPOINT SPREAD ABOVE THE TREASURY'S WHENISSUED TWOYEAR NOTE THE CERTIFICATES WERE RATED TRIPLEA BY S&P AND MOODY'S AND HAVE AN AVERAGE LIFE OF 185 YEARS BANCOMER SA MEXICO 750 MILLION OF EUROBONDS DUE JULY 7 1998 AS 8S SEMIANNUAL REOFFERED AT 9965 VIA CREDIT SUISSE FIRST BOSTON LTD AT REOFFER PRICE BONDS YIELD 8086 SEMIANNUAL MARGIN 283 BASIS POINTS ABOVE WHENISSUED FIVEYEAR US TREASURY FEES 7/8 POINT SUMITOMO CORP JAPAN 350 MILLION OF 5 3/4 EUROBONDS DUE JUNE 28 1999 AT ISSUE PRICE 101 5/8 VIA SUMITOMO FINANCE INTERNATIONAL REOFFERED AT PAR TO YIELD 575 MARGIN 29 BASIS POINTS ABOVE TREASURY CURVE FEES NOT DISCLOSED CITICORP US 100 MILLION OF 7 SUBORDINATED EUROBONDS DUE JAN 2 2004 REOFFERED AT 9970 VIA KIDDER PEABODY INTERNATIONAL LTD THE BONDS YIELD 703 SPREAD 100 BASIS POINTS ABOVE THE COMPARABLE US TREASURY NOTE FEES 5/8 POINT BANCO DE COLOMBIA COLOMBIA 50 MILLION OF 7 1/2 SEMIANNUAL EUROBONDS DUE JUNE 29 1996 REOFFERED AT 99567 VIA CITICORP INVESTMENT BANK LTD AND SWISS BANK CORP AT REOFFER PRICE BONDS YIELD 766 MARGIN 320 BASIS POINTS ABOVE TREASURY'S 4 1/4 NOTE DUE MAY 1996 FEES 1 POINT EUROPEAN INVESTMENT BANK SUPRANATIONAL 40 BILLION YEN OF 4 1/4 EUROBONDS DUE JULY 16 1998 REOFFERED AT 9978 VIA DAIWA EUROPE LTD AT REOFFER PRICE YIELD 430 MARGIN 24 BASIS POINTS ABOVE JAPANESE GOVERNMENT'S NO 111 BENCHMARK BOND FEES 1/4 POINT NORTHERN ROCK BUILDING SOCIETY UK 100 MILLION OF FLOATING RATE EURONOTES DUE OCT 1996 REOFFERED AT 9964 VIA SG WARBURG SECURITIES LTD INTEREST FLOATS AT 1/8 POINT ABOVE THREEMONTH LONDON INTERBANK OFFERED RATE FEES 0485 POINT DRESDNER FINANCE BV GERMANY PARENT 300 BILLION LIRE OF ZEROCOUPON EUROBONDS DUE JULY 19 2000 AT ISSUE PRICE 5232 VIA IMI BANK LUX SA AND DRESDNER BANK AG YIELD 1003 AT BREAKEVEN PRICE FOR COMANAGING BANKS GUARANTOR DRESDNER BANK AG FEES 1 1/4 POINTS BANK NEDERLANDSE GEMEENTEN NETHERLANDS 150 MILLION SWISS FRANCS OF 4 5/8 PUBLIC BONDS DUE JULY 27 2001 AT 10230 VIA SWISS BANK CORP FEES 2 1/4 POINTS 9306210188 930621 FOLLOWING GIFTS TO COLLEGES ANNENBERG EXPRESSES DESIRE TO HELP PUBLIC SCHOOLS BY STEVE STECKLOW AND PAMELA SEBASTIAN STAFF REPORTERS OF THE WALL STREET JOURNAL NOW THAT HE HAS DECIDED TO DONATE 365 MILLION TO THREE UNIVERSITIES AND A PREP SCHOOL WALTER H ANNENBERG SAYS HE INTENDS TO CHANGE HIS FOCUS TO ASSISTING YOUNGER STUDENTS AND HE SAYS HE HAS PLENTY MORE MONEY TO HELP I PROBABLY WILL EXPEND 90 OF THE ASSETS OF MY FOUNDATION DURING MY LIFETIME SAID THE 85YEAROLD PHILANTHROPIST I WANT TO KNOW WHERE IT'S GOING AND I WANT IT TO GO TO PLACES I BELIEVE ARE IMPORTANT AND NECESSARY PRIMARILY FOR THE YOUTH OF OUR COUNTRY THOSE PLACES INCLUDE PUBLIC SCHOOLS FROM KINDERGARTEN TO 12TH GRADE NOT AS WELLFUNDED AS COLLEGES AND HISTORICALLY THE BENEFICIARIES OF RELATIVELY LITTLE PRIVATE PHILANTHROPY ALTHOUGH MR ANNENBERG WAS NOT SPECIFIC IN HOW HE INTENDS TO ASSIST YOUNGER STUDENTS HE NOTED THAT HE MADE A 10 MILLION DONATION IN 1991 TO THE NEW AMERICAN SCHOOLS DEVELOPMENT CORP WHICH WAS LAUNCHED BY BUSINESS LEADERS THAT YEAR AT THE REQUEST OF THE BUSH ADMINISTRATION TO DESIGN MODELS FOR AMERICAN PUBLIC SCHOOLS THE PRIVATE NONPROFIT CORPORATION HAS BEEN STRUGGLING TO RAISE FUNDS AND RECENTLY SLASHED ITS 200 MILLION GOAL BY MORE THAN HALF PAIGE CASSIDY A SPOKESWOMAN FOR NASDC SAID THE ORGANIZATION HAD RECEIVED NO PROMISE OF FURTHER CONTRIBUTIONS FROM MR ANNENBERG BUT REMAINED HOPEFUL A LARGE CONTRIBUTION WOULD VERY EASILY IMPACT OUR EFFORTS TO REPLICATE OUR WORK IN NEW SCHOOLS SHE SAID OTHER SCHOOLS AND EDUCATIONAL ORGANIZATIONS NO DOUBT ARE HOPEFUL TOO I'M SURE THERE ARE A LOT OF SCHOOLS WHO WOULD LIKE TO GET IN LINE FOR THAT MONEY SAID SARA ENGELHARDT PRESIDENT OF THE FOUNDATION CENTER A NEW YORKBASED ORGANIZATION THAT STUDIES FOUNDATION AND CORPORATE GIVING MR ANNENBERG'S LATEST DONATIONS 120 MILLION EACH TO THE UNIVERSITY OF PENNSYLVANIA AND THE UNIVERSITY OF SOUTHERN CALIFORNIA 25 MILLION TO HARVARD UNIVERSITY AND 100 MILLION TO THE LITTLEKNOWN PEDDIE SCHOOL IN HIGHTSTOWN NJ REPRESENTS LESS THAN 25 OF THE ANNENBERG FOUNDATION'S PRESENT ASSETS WHICH MR ANNENBERG PLACED AT 16 BILLION THE DONATIONS WILL BE PAID OUT BY YEAR'S END MR ANNENBERG HAS PERSONAL TIES TO ALL OF THE SCHOOLS MR ANNENBERG WHO FORMERLY OWNED TV GUIDE AND OTHER PUBLICATIONS AND SERVED AS A US AMBASSADOR TO BRITAIN HAS BEEN GIVING AWAY LARGE SUMS OF MONEY FOR SOME TIME INCLUDING A 150 MILLION DONATION TO THE CORPORATION FOR PUBLIC BROADCASTING BUT HIS LATEST ACT OF CHARITY NOT ONLY SURPASSES HIS PREVIOUS GIFTS BUT ALSO REPRESENTS A RECORD FOR DONATIONS BY A PRIVATE FOUNDATION AND APPEARS TO REPRESENT ONE OF THE LARGEST SINGLE CHARITABLE GIFTS EVER MADE IN THE US EXPERTS SAID COMING FROM A FOUNDATION THE GIANT GIFT IS EVEN MORE UNUSUAL MOST WEALTHY DONORS SET UP FOUNDATIONS BECAUSE THEY WISH TO EXTEND THEIR GENEROSITY BEYOND THEIR DEATH SOMETIMES FOR BENEFICIAL TAX REASONS BUT A FEW SUCH AS MR ANNENBERG APPARENTLY BELIEVE IT'S BETTER TO GET THE SOCIAL PROBLEMS DEALT WITH NOW RATHER THAN SOCKING THE MONEY AWAY AND SPENDING IT OVER A LONGER PERIOD OF TIME MS ENGELHARDT SAID FOR HIS PART MR ANNENBERG SAID HE HOPES HIS LATEST CHARITABLE ACT WILL SET AN EXAMPLE FOR OTHER RICH DONORS PEOPLE OF MEANS HAVE TO BEGIN THINKING SERIOUSLY OF EDUCATION BECAUSE THAT IS THE FUTURE OF OUR COUNTRY WHETHER WE LIKE IT OR NOT HE SAID HIS GIFT CERTAINLY WILL HELP THE PEDDIE SCHOOL A 500STUDENT BOARDING SCHOOL FROM WHICH HE WAS GRADUATED IN 1927 RECEIVING 100 MILLION IS LIKE WINNING A LOTTERY SAID THOMAS A DEGRAY ITS HEADMASTER THE PEDDIE SCHOOL DONATION ALSO SHOWS THAT PRESTIGIOUS COLLEGES AND UNIVERSITIES NO LONGER HAVE A MONOPOLY ON GIANT GIFTS NOTED ELEANOR T CICERCHI VICE PRESIDENT FOR INSTITUTIONAL ADVANCEMENT AT MARYMOUNT COLLEGE TARRYTOWN IN NEW YORK IT CERTAINLY SHOWS THERE'S COMPETITION OUT THERE SHE SAID 9306210187 930621 WHAT'S NEWS WORLDWIDE OPPOSITION CAMPS WEIGHED STRATEGIES FOR A COALITION GOVERNMENT IN JAPAN WITH THE LONGRULING LIBERAL DEMOCRATIC PARTY IN DANGER OF LOSING ITS MAJORITY IN ELECTIONS NEXT MONTH OPPOSITION LEADERS PROMISED FLEXIBILITY IN PUTTING TOGETHER A COALITION THE LIBERAL DEMOCRATS SUFFERED A SPLIT WHEN 39 OF ITS LEGISLATORS SUPPORTED A NOCONFIDENCE VOTE FRIDAY THAT TOPPLED PRIME MINISTER MIYAZAWA'S GOVERNMENT POWER STRUGGLES AND PUBLIC OUTRAGE OVER HIS FAILURE TO CLEAN UP CORRUPTION PROVOKED THE MUTINY TOKYO STOCK PRICES SANK EARLY MONDAY AMID THE POLITICAL TURMOIL THIRTYFIVE OF THE REBELS LED BY EXFINANCE MINISTER HATA ARE EXPECTED TO FORM A NEW PARTY THIS WEEK THAT WILL WORK WITH OTHER OPPOSITION GROUPS GORAZDE'S DEFENDERS FOUGHT SERB BESIEGERS AS RESIDENTS IN THE BOSNIAN MUSLIM ENCLAVE AWAITED A LONGDELAYED UN RELIEF CONVOY MEANWHILE UN FORCES PLAYED DOWN A THREAT MADE BY THE CHIEF OF BOSNIA'S GOVERNMENT FORCES IN THE TOWN OF TUZLA TO ATTACK SERBS WITH CHLORINE GAS US POLICY TOWARD VIETNAM COULD CHANGE UNDER STEPS RECOMMENDED BY CLINTON'S ADVISERS THE PROPOSALS WHICH INCLUDE DROPPING US OPPOSITION TO A FRENCHLED EFFORT TO HELP HANOI PAY OFF OLD IMF DEBTS COULD LEAD TO A PARTIAL LIFTING OF A US EMBARGO AGAINST VIETNAM FEDERAL HOUSING OFFICIALS SAID THEY ARE TAKING ACTIONS TO TRY TO STEM POTENTIALLY MASSIVE LOSSES THAT COULD RESULT FROM A SHARP INCREASE IN APARTMENT BUILDING OWNERS WHO DEFAULT ON GOVERNMENTINSURED MORTGAGES UN FORCES IN SOMALIA ABANDONED PLANS TO RESUME FOOD DISTRIBUTION IN SOUTHERN MOGADISHU AFTER PAKISTANI TROOPS WHO WERE SUPPOSED TO GUARD THE CONVOY SAID THEY FEARED SNIPER FIRE DISTRIBUTION TO THAT PART OF THE CITY CONTROLLED BY CLAN LEADER AIDID HAS BEEN SUSPENDED SINCE JUNE 5 POLICE IN EGYPT DEFUSED TWO BOMBS INCLUDING ONE IN A CAIRO SUBURB WHERE A BOMB BLAST KILLED SEVEN PEOPLE AND INJURED 18 ON FRIDAY AUTHORITIES HAVE LINKED THE BOMBS TO MUSLIM EXTREMISTS A PROTEST PARTY CANDIDATE WAS ELECTED MAYOR OF MILAN A CONFIRMATION OF THE UPSTART NORTHERN LEAGUE'S GROWING PROMINENCE IN ITALIAN POLITICS ITALY'S TRADITIONAL PARTIES HAVE BEEN HURT BY SCANDALS REBEL FORCES ADVANCED ON AZERBAIJAN'S CAPITAL BAKU AS THE COUNTRY'S TEMPORARY LEADER FORMER COMMUNIST BOSS ALIEV URGED FUGITIVE PRESIDENT ELCIBEY TO RETURN TO ATTEND AN EMERGENCY SESSION OF PARLIAMENT AN AIR FORCE GENERAL HAS BEEN FORCED TO RETIRE EARLY AND WAS ORDERED TO PAY A 7000 FINE AFTER AN INVESTIGATION OF A SPEECH IN EUROPE IN WHICH HE REPORTEDLY MOCKED CLINTON MAJ GEN HAROLD CAMPBELL MADE THE REMARKS DURING A MAY 24 AWARDS BANQUET CLINTON CRITICIZED IMMIGRANT SMUGGLING EFFORTS BY ORGANIZED CRIME GROUPS THE PRESIDENT ALSO SAID HE WILL NOMINATE DORIS MEISSNER AS COMMISSIONER OF THE IMMIGRATION AND NATURALIZATION SERVICE PHILANTHROPIST WALTER ANNENBERG SAID SATURDAY HE IS GIVING A TOTAL OF 365 MILLION TO THREE UNIVERSITIES AND A PREP SCHOOL THE UNIVERSITY OF PENNSYLVANIA AND THE UNIVERSITY OF SOUTHERN CALIFORNIA EACH WILL RECEIVE 120 MILLION THE PEDDIE SCHOOL IN HIGHTSTOWN NJ WILL RECEIVE 100 MILLION AND HARVARD UNIVERSITY WILL GET 25 MILLION THE SUPREME COURT SAID THAT PUBLIC FUNDS MAY BE USED FOR SERVICES FOR A DEAF STUDENT IN A PAROCHIAL SCHOOL THE COURT RULED 54 ON FRIDAY THAT THE SEPARATION OF CHURCH AND STATE DIDN'T BAR A DISTRICT FROM PAYING FOR A SIGNLANGUAGE INTERPRETER THE JUSTICES RULED 72 THAT PRISONERS HAVE A CONSTITUTIONAL RIGHT NOT TO BE EXPOSED TO CELLMATES' CIGARETTE SMOKE IF SUCH EXPOSURE CREATES AN EXTREME RISK TO THEIR HEALTH THE CHICAGO BULLS WON THE NATIONAL BASKETBALL ASSOCIATION TITLE DEFEATING THE PHOENIX SUNS FOUR GAMES TO TWO LEE JANZEN WON THE US OPEN GOLF CHAMPIONSHIP IN SPRINGFIELD NJ DEFEATING PAYNE STEWART BY TWO STROKES DIED WILLIAM GOLDING 81 A NOBEL PRIZEWINNING AUTHOR BEST KNOWN FOR HIS NOVEL LORD OF THE FLIES SATURDAY IN PERRANARWORTHAL ENGLAND 9306210186 930621 WORK & FAMILY A SPECIAL REPORT NO ACTION DATA GAP DO FAMILYSUPPORT PROGRAMS HELP THE BOTTOM LINE THE RESEARCH IS INCONCLUSIVE BY SUE SHELLENBARGER WHEN RESEARCHER NEAL SCHENET STUDIED ABSENTEEISM IN AN ELGIN ILL WARSUPPLY PLANT DURING WORLD WAR II HE CAME UP WITH SOME PUZZLING RESULTS THE ERA OF ROSIE THE RIVETER WAS IN FULL SWING WITH WOMEN RUNNING FACTORIES AND OFFICES NATIONWIDE SO WHY IN THE STUDY WERE WOMEN ABSENT FROM THEIR JOBS THREE TIMES MORE OFTEN THAN MEN WERE THEY LESS MOTIVATED WAS THEIR HEALTH MORE FRAIL MR SCHENET FOUND NO SATISFACTORY ANSWER IT TURNS OUT THAT HE WAS LOOKING IN THE WRONG PLACE IT WASN'T UNTIL 40 YEARS LATER WHEN QUESTIONS AROSE ABOUT HOW FAMILY DUTIES AFFECT JOBS THAT A MORE LIKELY SOLUTION EMERGED ROSIE THE RIVETER PROBABLY HAD LOUSY CHILD CARE IN 1984 A LANDMARK STUDY BY ARTHUR EMLEN A PROFESSOR EMERITUS AT PORTLAND STATE UNIVERSITY IN OREGON FOUND THAT WOMEN WITH CHILDREN IN OUTOFHOME CARE WERE UP TO 65 MORE LIKELY TO BE ABSENT THAN OTHER EMPLOYEES MALE OR FEMALE WHO HAD NO CHILDREN OR A SPOUSE AT HOME WITH WOMEN TAKING MOST OF THE RESPONSIBILITY FOR CHILD CARE THE ONLY REASON MEN HAVE LOW RATES OF ABSENTEEISM IS THAT WOMEN HAVE HIGH RATES MR EMLEN SAYS WORKFAMILY RESEARCH HAS SINCE GONE EVEN FURTHER MOST OF IT SHOWS CLEARLY THAT CHILD OR ELDERCARE PROBLEMS LEAD TO INCREASED ABSENTEEISM WORK DISRUPTIONS TURNOVER AND STRESS ALL OF WHICH THEN DAMAGE PRODUCTIVITY AND MORALE IN FIVE UNPUBLISHED CORPORATE SURVEYS IN THE PAST SEVERAL YEARS FOR INSTANCE ABOUT HALF OF THE WOMEN AND ONETHIRD OF THE MEN SAY CHILDCARE RESPONSIBILITIES INTERFERE WITH THEIR WORK IN SOME WAY SAYS DANA FRIEDMAN COPRESIDENT OF THE FAMILIES & WORK INSTITUTE A NONPROFIT NEW YORK RESEARCH AND CONSULTING FIRM IN A NATIONAL SURVEY BY THE URBAN INSTITUTE A WASHINGTON DC THINK TANK AND OTHERS MORE THAN ONESIXTH OF EMPLOYED MOTHERS SAID THEY HAD STAYED HOME FROM WORK AT LEAST ONE DAY DURING THE PRECEDING MONTH BECAUSE THEIR CHILD WAS SICK CARING FOR AILING ELDERS WHICH AFFECTS ABOUT 25 OF WORKERS CAN TAKE AN EVEN HEAVIER TOLL SEVERAL CORPORATE SURVEYS HAVE FOUND THAT 33 TO 45 OF EMPLOYEES WITH ADULT DEPENDENTS WORK LESS EFFECTIVELY BECAUSE OF CONCERN ABOUT THEIR RELATIVES IN A STUDY OF 305 WORKERS WITH ELDERCARE RESPONSIBILITIES BY THE OLDER WOMEN'S LEAGUE IN WASHINGTON DC AND THE FAMILIES & WORK INSTITUTE NEARLY 25 OF THOSE SURVEYED CHANGED JOBS QUIT OR BECAME SELFEMPLOYED BECAUSE OF THEIR ELDERCARE DUTIES ABOUT ONETHIRD ARRIVED LATE AT WORK LEFT EARLY OR WERE ABSENT BECAUSE OF ELDERCARE DUTIES ELDER CARE ALSO CAN DAMP EMPLOYEES' AMBITIONS LEADING THEM TO TURN DOWN TRAINING NEW OPPORTUNITIES AND GEOGRAPHIC TRANSFERS BUT WHILE THERE IS PLENTY OF EVIDENCE THAT WORKFAMILY CONFLICT CAUSES WORKPLACE PROBLEMS THERE IS LESS PROOF THAT IT PAYS FOR COMPANIES TO DO SOMETHING ABOUT IT HOW MUCH DO CORPORATE CHILDCARE CENTERS FLEXIBLE SCHEDULES AND THE LIKE REALLY HELP PRODUCTIVITY HOW MUCH DO THEY REDUCE ABSENTEEISM AND TURNOVER OR HELP RECRUITMENT COMPANIES LARGE AND SMALL ARE LOOKING FOR SOMETHING TO HANG THEIR HATS ON SAYS LIZ NEEDLEMAN MANAGER OF WORK/HOME PROGRAMS FOR UNUM LIFE INSURANCE CO OF AMERICA A UNUM CORP UNIT IN PORTLAND MAINE AND A LEADER IN WORKFAMILY POLICIES SOME EXPERTS SAY THE SEARCH FOR A PRODUCTIVITY NUMBER IS MISGUIDED AND ULTIMATELY DESTRUCTIVE WORKFAMILY PROGRAMS HELP REACH SUCH UNQUANITIFIABLE GOALS AS ADVANCING WOMEN PROMOTING TEAMWORK AND IMPROVING QUALITY THESE PEOPLE SAY WHERE'S THE RESEARCH THAT SAYS THE THREEMARTINI LUNCH HAS A PAYOFF OR MEMBERSHIPS IN THE COUNTRY CLUB OR DENTAL INSURANCE FOR THAT MATTER ASKS SANDRA BURUD A PASADENA CALIF CONSULTANT WORKFAMILY BENEFITS ARE BEING HELD TO HIGHER STANDARDS SOME COMPANIES INCLUDING UNUM AND JOHNSON & JOHNSON A NEW BRUNSWICK NJ CONSUMERPRODUCTS COMPANY SAY IT IS ENOUGH TO KNOW THAT WORKFAMILY PROGRAMS INCREASE THEIR ABILITY TO RECRUIT AND RETAIN SKILLED EMPLOYEES A TWOYEAR STUDY AT JOHNSON & JOHNSON RELEASED IN APRIL SHOWED THE COMPANY'S WORKFAMILY POLICIES HELP RETAIN WORKERS AS WELL AS MAKE MANAGERS MORE UNDERSTANDING OF EMPLOYEES' FAMILY PROBLEMS THE PROGRAMS ENSURE THAT THE COMPANY IS GOING TO CONTINUE TO BE SEEN AS AN EMPLOYER OF CHOICE AS A PLACE WHERE PEOPLE WOULD LIKE TO WORK AND TO SEE THEIR CHILDREN WORK SAYS CHRIS KJELDSEN VICE PRESIDENT HEADQUARTERS HUMAN RESOURCES FOR JOHNSON & JOHNSON YET IF WORKFAMILY PROGRAMS ARE TO WIN WIDE ACCEPTANCE AMONG THE CHIEF EXECUTIVES AND MIDDLE MANAGERS WHO MUST IMPLEMENT THEM THEY MUST BE TIED TO THE BOTTOM LINE MUCH OF THE RESEARCH IN THAT AREA IS FLAWED BECAUSE IT LACKS RELIABLE COMPARATIVE DATA OR RELIES ON EMPLOYEES' PERCEPTIONS OF THEIR PERFORMANCE AT WORK RATHER THAN MOREOBJECTIVE MEASURES HERE'S AN OVERVIEW OF THE RESEARCH SO FAR CORPORATE CHILDCARE CENTERS RESEARCH ON CORPORATE CHILDCARE CENTERS IS MIXED IN ANECDOTAL SURVEYS USERS TYPICALLY CLAIM THEY ARE MORE PRODUCTIVE AND ARE ABSENT OR TARDY LESS OFTEN BUT MORERIGOROUS RESEARCH HAS FAILED FOR THE MOST PART TO CONFIRM THAT A 1989 RESEARCH SURVEY BY BERKELEY PLANNING ASSOCIATES A POLICY RESEARCH AND CONSULTING GROUP FOUND THAT OF FIVE STUDIES THAT USED COMPANIES' ADMINISTRATIVE DATA RATHER THAN EMPLOYEE OPINIONS ONLY TWO FOUND THAT CORPORATE CHILD CARE REDUCED ABSENTEEISM AND ONE OF THOSE STUDIES WAS FLAWED THREE STUDIES FOUND REDUCED TURNOVER THERE'S A DIFFERENCE BETWEEN WHAT PEOPLE THINK AND WHAT THE OBJECTIVE MEASURES SAY SAYS ELLEN GALINSKY COPRESIDENT OF THE FAMILIES & WORK INSTITUTE PEOPLE THINK HELPING WITH CHILD CARE IS GOING TO IMPROVE MORALE LOYALTY AND REDUCE ABSENTEEISM IN FACT THE BEHAVIORAL STUDIES SHOW IT IS MUCH MORE CRUCIAL IN RECRUITMENT AND RETENTION CHILDCARE CENTERS TYPICALLY COST BETWEEN 500000 AND 5 MILLION TO BUILD AND OPERATING COSTS USUALLY RANGE FROM 100 TO 200 A WEEK PER CHILD OR 5200 TO 10400 A YEAR DEPENDING ON THE KIND OF CARE PROVIDED BUT FEW PARENTS CAN AFFORD TO PAY THE FULL COST OF THE HIGHQUALITY CARE TYPICALLY PROVIDED IN CORPORATE CENTERS SO EMPLOYERS USUALLY SUBSIDIZE UP TO HALF THE TUITION ONE THING IS CLEAR CORPORATE CHILDCARE CENTERS YIELD FAVORABLE PUBLICITY ONE STUDY OF A CHILDCARE CENTER OPENED IN 1987 BY UNION BANK IN MONTEREY PARK CALIF FIGURED THAT THE RESULTING MEDIA COVERAGE INCLUDING 27 NEWSPAPER AND MAGAZINE ARTICLES TWO EVENING TELEVISION NEWS SPOTS AND A RADIO PROGRAM WAS WORTH ABOUT 40000 OF FREE ADVERTISING FLEXIBLE SCHEDULING FLEXTIMEFLEXIBLE SCHEDULING THAT ALLOWS EMPLOYEES TO ADJUST THEIR SCHEDULES BY AN HOUR OR TWO EARLIER OR LATER IN THE DAYCAN EASE TENSION BUT BECAUSE IT ONLY MARGINALLY INCREASES THE AMOUNT OF TIME EMPLOYEES SPEND ON FAMILY NEEDS FLEXTIME IS NOT AS BENEFICIAL AS OFTEN HOPED IN RESOLVING WORKFAMILY CONFLICTS CONCLUDED A 1990 STUDY BY KATHLEEN CHRISTENSEN A PROFESSOR AT CITY UNIVERSITY OF NEW YORK AND ANOTHER RESEARCHER FLEXTIME DOES HELP EMPLOYERS HOWEVER IN ONE STUDY MORE THAN HALF OF 196 COMPANIES SURVEYED SAID FLEXTIME EASED TARDINESS AND ABSENTEEISM IMPROVED EMPLOYEE ATTITUDES AND AIDED RECRUITING ACCORDING TO A 1991 REPORT BY THE CONFERENCE BOARD A BUSINESSRESEARCH GROUP BASED IN NEW YORK AND IT'S CHEAP IN THE SAME SURVEY 80 SAID FLEXTIME COST THEM NOTHING IN ADMINISTRATIVE TRAINING OR SUPPORT EXPENSE SINCE IMPLEMENTATION COSTS ARE SO LOW LITTLE IS NEEDED TO SHOW A RETURN ON INVESTMENT FOR FLEXTIME THE CONFERENCE BOARD SAYS CHILDCARE RESOURCE AND REFERRAL SERVICES RESOURCE AND REFERRAL AGENCIES OFFER CALLERS A LIST OF SITTERS OR DAYCARE CENTERS IN THEIR AREA SOME COMPANIES CONTRACT WITH THESE AGENCIES TO PROVIDE SUCH ENHANCED SERVICES AS HELP IN SCREENING CAREGIVERS CHILDCARE RESOURCE AND REFERRAL SERVICES COST ABOUT 10 PER EMPLOYEE PER YEAR THAT COST IS BASED ON ALL EMPLOYEES NOT JUST THOSE WHO USE THE SERVICE LITTLE RESEARCH HAS BEEN DONE ON THE IMPACT OF THESE SERVICES BUT A 1992 SURVEY BY MR EMLEN AND OTHERS OF USERS OF CHILDCARE RESOURCE AND REFERRAL SERVICES AT 25 WEST COAST COMPANIES FOUND THAT ABOUT 90 OF USERS FOUND THE SERVICES COURTEOUS PROMPT AND KNOWLEDGEABLE AND THAT TWOTHIRDS ACTUALLY FOUND CAREGIVERS THROUGH THE SERVICE EMPLOYEES USUALLY FEEL HELPED BY THE SERVICE EVEN IF THEY DON'T FIND JUST THE KIND OF CHILD CARE THEY ARE LOOKING FOR MR EMLEN SAYS ELDERCARE RESOURCE AND REFERRAL SERVICES THESE SERVICES ARE THE MOSTEFFECTIVE WAY TO HELP EMPLOYEES WITH ELDERCARE DUTIES SAYS ANDREW SCHARLACH A PROFESSOR OF AGING AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY ABSENTEEISM AND TURNOVER AMONG EMPLOYEES WHO ARE CARING FOR ELDERLY OR DISABLED RELATIVES COST EMPLOYERS ABOUT 2500 A YEAR PER EMPLOYEE HE ESTIMATES AND PRELIMINARY RESEARCH SHOWS RESOURCE AND REFERRAL SERVICES CAN SAVE ABOUT THE SAME AMOUNT FOR SOME USERS IF THAT IS THEY ARE USED ONLY ABOUT 10 TO 20 OF THOSE WITH ELDERCARE RESPONSIBILITIES TYPICALLY TAP THE SERVICE MR SCHARLACH SAYS THE PRICE OF THE SERVICE RANGES FROM ABOUT 5 TO 15 PER EMPLOYEE PER YEAR DEPENDING ON WHAT SERVICES ARE OFFERED AND WHAT GEOGRAPHICAL AREA IS COVERED FAMILY LEAVE A STUDY PUBLISHED LAST YEAR BY THE FAMILIES AND WORK INSTITUTE SHOWED THAT AN AVERAGE PARENTAL LEAVE OF ABOUT 4 1/2 MONTHS COSTS 32 OF AN EMPLOYEE'S ANNUAL SALARY WHILE REPLACING AN EMPLOYEE COST BETWEEN 75 AND 150 OF SALARY ANOTHER STUDY BY AETNA LIFE & CASUALTY CO FOUND THAT OFFERING GENEROUS FAMILY LEAVE OF UP TO SIX MONTHS REDUCED THE NUMBER OF EMPLOYEES WHO FAILED TO RETURN FROM MATERNITY LEAVE TO 12 FROM 24 MANY COMPANIES BELIEVE ALLOWING EMPLOYEES TO RETURN TO WORK PART TIME FOLLOWING FAMILY LEAVE HELPS MORALE AND PRODUCTIVITY MANAGERS MAKE COMMENTS LIKE SHE COMES IN ONLY THREE DAYS A WEEK BUT I'M GETTING MUCH MORE THAN THAT FROM HER' SAYS JOAN WARING ASSISTANT VICE PRESIDENT HUMAN RESOURCES FOR EQUITABLE LIFE ASSURANCE SOCIETY NEW YORK EMPLOYEE SEMINARS LUNCHTIME CLASSES ON SUBJECTS FROM PRENATAL HEALTH CARE TO HOSPICE CARE ARE INCREASINGLY POPULAR WHILE THESE MEETINGS PROVIDE USEFUL INFORMATION AND MAY RELIEVE STRESS EMPLOYERS AREN'T LIKELY TO RECOVER THEIR COSTS IN REDUCED ABSENTEEISM MR SCHARLACH SAYS IN FACT SOME EVIDENCE SUGGESTS THAT PEOPLE WHO ATTEND THE SEMINARS ARE ABSENT MORE OFTEN FOR A WHILE AS THEY TAKE TIME OFF TO EXPLORE THE PROGRAMS THEY HAVE LEARNED ABOUT HE SAYS MOST EMPLOYERS LIKE THE SEMINARS ANYWAY BECAUSE THEY BUILD MORALE AND SEND A MESSAGE THAT THE COMPANY CARES 9306210185 930621 WORK & FAMILY A SPECIAL REPORT ON THE JOB MEN AT WAR THE SENSITIVE '90S TYPES SQUARE OFF AGAINST THE OLDFASHIONED REGULAR GUYS AND EVERYBODY FEELS THE STRAIN BY STUART MIEHER AMERICA'S MEN ARE AT EACH OTHER'S THROATS ON ONE SIDE OF THE STRUGGLE ARE THE '90S HUSBANDS AND FATHERS TRYING TO SQUEEZE IN TIME FOR THEIR FAMILIES EVEN AS SUCCESS ON THE JOB DEMANDS EVERGREATER COMMITMENT ON THE OTHER SIDE ARE THE MEN THEY LEAVE BEHIND AS THEY HEAD FOR HOME OLDFASHIONED REGULAR GUYS WHO LOOK TO WIVES TO MANAGE HOME AND CHILDREN AS THEY CONTINUE THEIR WORKAHOLIC WAYS BOTH ARE FRUSTRATED AND ANGRY AND EACH IS TAKING IT OUT ON THE OTHER CONSIDER TOM GOODELL 41 WHO WORKED IN COMPUTER SERVICES AT A MINNEAPOLIS BANK WHILE YEARNING TO SPEND MORE TIME WITH HIS TWO SMALL DAUGHTERS HE TRIED TO KEEP THE JOB'S DEMANDS IN CHECK ONLY TO BE CONFRONTED WITH A NEW MANAGEMENT DETERMINED TO INCREASE PRODUCTIVITY FIRST CAME A SENIOR MANAGER WHO ANNOUNCED THAT THE WORKWEEK WASN'T 40 HOURS ANY MORE AND I DON'T THINK HE MEANT IT WAS GETTING SHORTER SAYS MR GOODELL THEN HIS SUPERVISOR NOTICING HIS CONTINUED 40HOUR WEEK PULLED HIM ASIDE TO SAY THIS ISN'T WORKING HE SURVIVED THAT ENCOUNTER BUT LEFT LAST YEAR TO START A SUCCESSFUL CONSULTING BUSINESS OUT OF HIS HOUSE HIS VERDICT ON MEN WHO IGNORE FAMILY LIFE WHILE SEEKING SUCCESS THROUGH 70HOUR WORKWEEKS THEY ARE COMPULSIVE AND DRIVEN AND THEY DON'T HAVE INTIMATE RELATIONSHIPS YEAH BUT' BUT CONSIDER ALSO RICHARD WHIRTWELL 36 WHO SUPPORTS HIS WIFE AND THREE YOUNG SONS IN CHICAGO AS A PRODUCT MANAGER FOR A TELECOMMUNICATIONS COMPANY I WANT TO FEEL FOR THESE GUYS WHO HEAD OUT THE DOOR AT FIVE I KNOW THEY HAVE WIVES WHO WORK THAT THEY HAVE TO COACH BASEBALL OR GET THE KIDS FROM SCHOOL HE SAYS BUT I'M HERE UNTIL EIGHT PREPARING THEIR PRESENTATIONS AND THEN THEY SAY THEY OUGHT TO BE GETTING AHEAD JUST AS FAST AS I DO OR NORMAN MCGINITY A 45YEAROLD LOS ANGELES CRIMINALDEFENSE ATTORNEY WHO WATCHES BEWILDERED AS COLLEAGUES DROP OUT OR CUT BACK TO MANAGE FAMILY CONCERNS YOU'RE EITHER IN THE GAME OR OUT OF IT HE SAYS I AM WHAT I DO AND IF I DIDN'T SPEND THE TIME IT TAKES TO WIN FOR MY CLIENTS I'D BE A PRETTY LOUSY LAWYER AT THE ROOT OF THE CLASH ARE CHANGING IDEAS ABOUT WORK AND THE OBLIGATIONS OF MARRIAGE AND FATHERHOOD MENTALHEALTH PROFESSIONALS TRACE A WHOLE HOST OF ILLS TO DISTANT FATHERS THE ABSENCE OF MEN FROM THE FAMILY IS PAID FOR IN NUMEROUS WAYS SUCH AS SUBSTANCE ABUSE BY TEENAGERS SAYS WILLIAM POLLACK A HARVARD MEDICAL SCHOOL RESEARCHER AND PSYCHOLOGIST FOCUSING ON MEN'S ISSUES FILMS AND TELEVISION ENCOURAGE MEN TO BE MORE THAN VISITING DIGNITARIES WHO WORK LATE TO PROVIDE FOR THE FAMILY MOREOVER NEARLY 60 OF WOMEN WITH CHILDREN UNDER THE AGE OF SIX NOW WORK OUTSIDE THE HOME PUTTING A PREMIUM ON MALE PARTNERSHIP AROUND THE HOUSE AND LAYOFFS HAVE LOOSENED THE BONDS OF LOYALTY BETWEEN MEN AND THEIR WORKPLACES YET THE CHANGE THREATENS EVEN THE MEN WHO EMBRACE THEM IT TOUCHES A FEAR INSIDE YOU SAYS GREG PARISEAU 39 WHO BECAME A STAYATHOME DAD AFTER HE WAS LAID OFF FROM HIS JOB WITH COMMERCE CLEARING HOUSE THE PUBLISHER IN MINNEAPOLIS INSTEAD OF LOOKING FOR ANOTHER JOB HE TAKES CARE OF HIS FIVEMONTHOLD SON AND TWO DAUGHTERS AGED EIGHT AND FIVE I KNOW IT WAS THE RIGHT DECISION HE SAYS BUT I WONDER WILL I BE ABLE TO GET BACK INTO IT THERE ARE GROWLS TOO FROM MEN WHO HAVE ALWAYS SEEN THEIR ROLE AS PROVIDER AND NOW HEAR THAT ISN'T QUITE ENOUGH I THINK I'M A PRETTY GOOD FATHER SAYS MR WHIRTWELL THE HARDWORKING TELECOMMUNICATIONS MANAGER MY WIFE AND I DECIDED IT MADE SENSE FOR ME TO EARN THE INCOME AND I GET A LOT OUT OF MY JOB I DON'T LIKE SOMEONE TELLING ME I'M A FAILURE IF I'M NOT MY KIDS' BEST FRIEND AND CHANGING ALL THE DIAPERS FOR TRADITIONAL MEN WHO FEEL BESIEGED PEERS WHO HAVE DOWNSHIFTED THEIR CAREERS ARE A NATURAL TARGET THEY SAY I CAN'T BELIEVE SOMEONE WOULD MAKE A CHOICE TO FOCUS ON FAMILY AND DEEMPHASIZE CAREER SUCCESS' SAYS MR POLLACK THE HARVARD PSYCHOLOGIST IT SHOWS THEM THAT THEY HAVE ALSO MADE CHOICES TO BE LESS INVOLVED IN FAMILY LIFE AND THAT'S VERY THREATENING TO MOST PEOPLE MEN WHO HAVE DEEMPHASIZED WORK FOR FAMILY SAY INDIFFERENCE IS MORE TYPICAL THAN OPEN HOSTILITY IT'S LIKE A PHD TALKING TO A MECHANIC SAYS MR PARISEAU THERE'S REALLY NOT MUCH TO TALK ABOUT BUT CONFLICT SURFACES IN EVERYDAY ENCOUNTERS MR PARISEAU OFTEN FEELS MEN DON'T GIVE HIM ENOUGH CREDIT FOR DOING WHAT USED TO BE WOMEN'S WORK THEY SAY I WISH I COULD DO THAT I COULD WORK ON MY GOURMET COOKING' HE SAYS THEY DON'T REALIZE THAT THIS IS VERY DEMANDING WORK AND YOU DON'T HAVE TIME FOR YOUR HOBBIES FOR JIM SENSER A 40YEAROLD FORT WORTH TEXAS TRAVEL AGENT WHOSE PARTTIME WORK GIVES HIM TIME TO BE ACTIVE IN HIS CHILDREN'S ELEMENTARY SCHOOL EVEN A PTA BAKE SALE CAN BE AWKWARD HE REMEMBERS ONE MAN WHO APPROACHED HIS TABLE LAUGHING AND ASKED DID YOU MAKE THIS PIE MR SENSER WHO DID MAKE THE PASTRY WAS OFFENDED I'M A PRETTY GOOD BAKER AND HE WAS MAKING FUN OF ME FOR IT RICK GEISSAL A WEBSTER GROVES MO LAWYER WHO CUT BACK HIS LEGAL PRACTICE TO LOOK AFTER HIS TWO DAUGHTERS HAS TROUBLE MAKING CARPOOL ARRANGEMENTS WITH WIVES OF MORETRADITIONAL MEN IF HER HUSBAND ANSWERS THE PHONE HE INTERROGATES ME ABOUT WHO I AM AND WHY I'M CALLING SAYS MR GEISSAL WHOSE WIFE WORKS FULL TIME IF THE WIFE'S NOT THERE HALF THE TIME SHE DOESN'T GET THE MESSAGE IT WOULDN'T HAPPEN HE BELIEVES IF A WOMAN CALLED I'M A THREAT TO HIM A MAN HE DOESN'T KNOW WHO'S CALLING HIS WIFE TOM LAIS 38 BECAME A SINGLE FATHER TO HIS 10YEAROLD AND SEVENYEAROLD WHEN HIS MARRIAGE BROKE UP A YEAR AGO AT THE TIME HE HELD A HIGHSTRESS POSITION AS A CONTROLLER IN SPAIN FOR CHIQUITA BRANDS INTERNATIONAL INC YOU COULD HEAD OUT THE DOOR AT 7 AND EVERYONE WOULD SAY OK HE SAYS THEN THE NEXT MORNING THEY'D SAY WE WERE HERE UNTIL 3 AM AND WE GOT THE PROBLEM SOLVED' AND YOU'D FEEL OUT OF THE LOOP INDEED MANY COMPANIES REMAIN HOSTILE PLACES FOR INVOLVED HUSBANDS AND FATHERS FORCING THEM UNDERGROUND MR GOODELL THE MINNEAPOLIS BANK STAFFER WOULD SCHEDULE OFFSITE MEETINGS THAT WOULD END AT 4 PM BUT RATHER THAN GOING BACK TO THE OFFICE HE WOULD HEAD FOR HOME MR SENSER THE FORT WORTH TRAVEL AGENT SAYS ONE FORMER EMPLOYER MANAGED BY THE TIME CARD REFUSING TO CREDIT HIM FOR THE HALF DAY OR MORE OF WORK HE WOULD DO FROM HOME WHEN TENDING SICK CHILDREN HIS RESPONSE I'D FUDGE THE TIME CARD PERHAPS THE MEN WHO HAVE IT THE HARDEST ARE THOSE WHO ARE THE MOST AMBIVALENT WHO NEED AND WANT TO SPEND MORE TIME REARING THEIR CHILDREN BUT ARE PULLED AND STIMULATED BY DEMANDS OF THE JOB I REALLY RESPECT GUYS WHO CAN SET LIMITS SAYS MARK BAHN A 43YEAROLD ST LOUIS LAWYER WITH THREE SMALL CHILDREN BUT I'M THE MAJOR MAJOR BREADWINNER IN MY FAMILY AND I'M A TYPEA PERSON I NEED STIMULATION FROM MY JOB IT'S UNFORTUNATE BUT THAT'S THE WAY IT IS THIS AMBIVALENCE MAKES MEN THEIR OWN WORST ENEMIES THERE'S NO CONSTITUENCY FOR PRACTICES ALLOWING MEN MORE TIME FOR FAMILY CONCERNS SAYS BRADLEY GOOGINS DIRECTOR OF BOSTON UNIVERSITY'S CENTER ON WORK AND FAMILY IT'S NOT LIKE FEMINIST ISSUES WHERE YOU OFTEN FIND WOMEN QUITE UNIFIED SOME STUDIES HAVE SHOWN THAT MEN TEND NOT TO USE EVEN THE WORKPLACE BENEFITS AVAILABLE TO THEM JOSEPH PLECK A PSYCHOLOGIST AT THE WELLESLEY COLLEGE CENTER FOR RESEARCH ON WOMEN IN WELLESLEY MASS SAYS MEN TEND TO TAKE VERY LITTLE LEAVE FOLLOWING THE BIRTH OF A CHILD EVEN WHEN IT'S OFFERED THEY TAKE FIVE OR SIX DAYS AND THEY CALL IT SICK TIME OR VACATION NOT PATERNITY LEAVE HE SAYS DR PLECK SUSPECTS MEN FEAR THAT LONGER LEAVES TOGETHER WITH THE VISIBLE FORMAL PROCESS OF APPLYING FOR THEM WOULD LEAD PEERS TO QUESTION THEIR COMMITMENT SOME MEN HANDLE THE PROBLEM BY FINDING NEW PEERS MR LAIS THE FORMER CHIQUITA MANAGER DECIDED TO MOVE BACK TO HIS HOMETOWN OF MINNEAPOLIS WHERE HE TOOK A FINANCE JOB AT A HOSPITAL FOR 25 LESS PAY IN HIS NEW OFFICE EVERYBODY HAS THIS PROBLEM SO THEY'RE MORE ACCEPTING HE SAYS AND IN ANY CASE SAYS MR LAIS FAILURES IN THE WORKPLACE PALE BESIDE THOSE ON THE HOME FRONT A DAYCARE PROVIDER IS A LOT MORE SCARY THAN ANY CORPORATE EXECUTIVE COULD BE HE SAYS IF YOU DON'T GET THERE THE KIDS ARE OUT ON THE STREET MR MIEHER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S PITTSBURGH BUREAU 9306210184 930621 CORPORATE FOCUS US HOME HAMMERS AWAY AND PUTS ITS HOUSE IN ORDER ONE OF NATION'S BIGGEST BUILDERS IS TO LEAVE SHELTER OF BANKRUPTCY COURT BY SCOTT MCCARTNEY STAFF REPORTER OF THE WALL STREET JOURNAL HOUSTON US HOME CORP IS GETTING OUT OF BANKRUPTCYCOURT PROTECTION THE SAME WAY IT GOT IN BY AGGRESSIVELY BUILDING HOMES THE LAST TIME THE COMPANY WENT ON A BUILDING BINGE IT GOT SQUEEZED BETWEEN A PLUMMETING REALESTATE MARKET AND A CREDIT CRUNCH THIS TIME HOWEVER THE COMPANY INSISTS THAT BOTH THE HOMESELLING MARKET AND THE CREDIT MARKET ARE IN ITS FAVOR A LOT OF INVESTORS AND A MAJOR LENDER ARE BETTING US HOME IS RIGHT THIS WEEK US HOME WILL COMPLETE THE SALE OF AN OVERSUBSCRIBED ISSUE OF 200 MILLION IN 10YEAR JUNK BONDS PRICED AT 975 PROCEEDS WILL BE USED TO PAY CREDITORS SIMULTANEOUSLY THE COMPANY WILL GET A FOURYEAR SECURED 95 MILLION LINE OF CREDIT FROM GENERAL ELECTRIC CAPITAL CORP THE MARKET'S APPETITE FOR THE NOTES CALLABLE IN FIVE YEARS AND SINGLEBRATED BY STANDARD & POOR'S CORP REFLECTS A HUNGER FOR HIGH YIELDS AS WELL AS CONFIDENCE IN US HOME THEY WILL BE GOING FROM BEING BANKRUPT ONE DAY TO A WELLCAPITALIZED COMPANY THE NEXT DAY SAYS JOHN BRIM MANAGING DIRECTOR AT DILLON READ & CO THE UNDERWRITER FOR THE BONDS AND ADVISER TO US HOME WE THINK IT'S QUITE UNIQUE AND CAPABLE OF BEING REPLICATED FOR OTHER COMPANIES BUT SOME DOUBTS LINGER ANALYSTS NOTE THAT THE HOME BUILDER THE NATION'S FOURTH LARGEST IN TERMS OF UNITS SOLD WILL EMERGE FROM CHAPTER 11 WITH THE SAME STRATEGY AND THE SAME MANAGEMENT IT HAD BEFORE THE 1991 BANKRUPTCYCOURT FILING WHY WOULD THE COMPANY ALWAYS BIG BUT NOT VERY PROFITABLE THEY SAY BE ANY MORE SUCCESSFUL NOW THAN IN THE PAST US HOME IS A PERENNIAL LOSER WITHOUT ANY APPARENT CHANGE IN MANAGEMENT OR STRATEGY SAYS LAWRENCE HORAN OF PRUDENTIAL SECURITIES RESEARCH NEVERTHELESS SOME ANALYSTS SAY THEY ARE TANTALIZED BY THE COMPANY LITTLEFOLLOWED WHILE IN BANKRUPTCYLAW PROTECTION BUT NOW COMING BACK TO WALL STREET LIFE AMID A BOOM FOR HOUSING ISSUES THE COMPANY'S COMMON STOCK HAS DOUBLED IN THE PAST TWO MONTHS TO 2 FROM 1 IT CLOSED UNCHANGED AT 2 FRIDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE IF THE STOCK TAKES OFF EVEN THE COMPANY'S OLD SHAREHOLDERS WILL BE HAPPY BECAUSE THEY RECEIVED AN UNUSUALLY GENEROUS 30 OF THE NEW EQUITY ISSUED BY THE COMPANY PLUS WARRANTS TO BUY 10 MORE IN MANY BANKRUPTCIES CREDITORS TYPICALLY TAKE AS MUCH AS 95 OF THE NEW EQUITY BUT THIS TIME THE SIMULTANEOUS NEW OFFERING OF BONDS IS PRODUCING CASH TO PAY OFF CREDITORS DILLON READ SAYS CREDITORS ARE BEING PAID IN FULL IN CASH AND STOCK IT'S INTRIGUING SAYS ANALYST TIMOTHY JONES AT SOUTHEAST RESEARCH PARTNERS IN BOCA RATON FLA WHO IS BEGINNING TO PICK UP COVERAGE AGAIN AND HAS TALKED WITH MANAGEMENT OF US HOME ABOUT ITS PROSPECTS MR JONES NOTES THAT OTHER HOUSINGRELATED COMPANIES THAT FELL INTO CHAPTER 11 SUCH AS NATIONAL GYPSUM CO MAY SOON BE EMERGING IN MUCH THE SAME SHAPE AS US HOME IT CERTAINLY REFLECTS THE IMPROVEMENT OVERALL IN THE HOUSING MARKET HE SAYS GARY HINDES CHAIRMAN OF DELAWARE BAY CO A NEW YORK INVESTMENT FIRM THAT FOLLOWS DISTRESSED SECURITIES AGREES IN HOUSING AFFORDABILITY IS HIGH INTEREST RATES ARE LOW HE SAYS THEY OUGHT TO DO WELL WITH THE STOCK LONGTERM I THINK THE COMPANY HAS A BRIGHT FUTURE STILL SOME QUESTION WHETHER US HOME CAN PICK UP ALL THE PIECES AGAIN WELLFINANCED PUBLICLY TRADED FIRMS CAN CHERRYPICK THE BEST DEALS BUT IF YOU'VE BEEN IN THE FINANCIAL SEWER YOU HAVEN'T BEEN ABLE TO DO THAT MR HORAN SAYS I WOULD QUESTION WHETHER US HOME WILL BE ABLE TO GROW SUBSTANTIALLY MAJOR HOME BUILDERS SUCH AS CENTEX CORP PHM CORP AND LENNAR CORP ARE TRADING NEAR ALLTIME HIGHS AND HAVE ACCESS TO GOOD CAPITAL SAYS ANALYST JIM WILSON OF MONTGOMERY SECURITIES US HOME WOULD LIKE TO BE IN THAT CATEGORY BUT THE BIG QUESTION IS WHAT WILL THE BALANCE SHEET LOOK LIKE I CAN'T IMAGINE THEM BEING IN ENOUGH OF A GOOD POSITION TO BE A LANDBUYER CASH DOES APPEAR TO BE TIGHT IN ITS PROSPECTUS FOR THE BOND ISSUE US HOME SAID IT HAD ONLY 63 MILLION IN CASH FOR HOUSING OPERATIONS AT MARCH 31 AND THAT WOULD HAVE DROPPED TO 35 MILLION ON A PRO FORMA BASIS HAD THE REORGANIZATION BEEN COMPLETED ROBERT J STRUDLER US HOME CHAIRMAN SAYS THAT WITH THE GE WORKING CAPITAL WHICH WILL PROVIDE ANOTHER 139 MILLION THIS YEAR US HOME BELIEVES IT WILL HAVE ADEQUATE CAPITAL FOR THE FUTURE MR STRUDLER INSISTS THE COMPANY DOESN'T NEED TO DO ANYTHING REVOLUTIONARY TO SUCCEED US HOME HAD A VERY VALUABLE HOUSING FRANCHISE HE SAYS WE JUST HAD TO RESTRUCTURE OUR BALANCE SHEET THE COMPANY HAS TAKEN SOME STEPS TO SIGNAL THAT IT HAS CHANGED IT TOOK THE SEEMINGLY INCONGRUOUS STEP OF LAUNCHING A QUALITY ENHANCEMENT PROGRAM THE SAME DAY IT FILED FOR CHAPTER 11 PROTECTION THE ZERO DEFECTS EFFORT PROVED CRITICAL TO REBUILDING CUSTOMER CONFIDENCE IN A BANKRUPT BUILDER AND ALSO VITAL TO EASING EMPLOYEES' FEARS BY GETTING THEM TO FOCUS ON A NEW GOAL THIS WAS A PERIOD OF TIME WHEN PEOPLE HAVE A TENDENCY TO BE WORRIED ABOUT OTHER THINGS LIKE THEIR JOB SAYS MR STRUDLER BUT WE WERE ABLE TO INSTITUTE MORE RIGOROUS QUALITY STANDARDS WHILE IN BANKRUPTCY IT WAS PARTICULARLY IMPORTANT TO PUT MORE EMPHASIS ON THE COMPANY'S PRODUCTS IN ADDITION THE COMPANY WAS ABLE TO WORK OFF INVENTORY WHILE IN BANKRUPTCYLAW PROTECTION US HOME HE SAYS HAS BEEN ABLE TO RUN IN A NORMAL COURSE AND SALES HAVE ACTUALLY INCREASED US HOME WHICH OPERATES IN 25 METROPOLITAN AREAS IN 10 STATES PRIMARILY FLORIDA CALIFORNIA AND TEXAS POSTED OPERATING PROFIT FOR 1992 OF 293 MILLION BEFORE REORGANIZATION EXPENSES AND TAXES NET INCOME IN THIS YEAR'S FIRST QUARTER WAS 5 MILLION OR 11 CENTS A SHARE REVENUE IN THE QUARTER GREW 17 TO 1645 MILLION FROM 1404 MILLION THE NUMBER OF HOMES THE COMPANY SOLD IN 1992 INCREASED 32 OVER THE PREVIOUS YEAR AND ROSE 14 IN THE FIRST QUARTER THIS YEAR OVER THE YEAREARLIER PERIOD THE COMPANY'S BACKLOG OF ORDERS ALSO WAS UP 16 IN THE QUARTER AND MARGINS WHICH HAD DROPPED TO 153 IN 1991 IMPROVED TO MORE THAN 17 TOTAL DEBT FOR THE COMPANY STOOD AT 3487 MILLION MARCH 31 BUT WOULD HAVE BEEN NEARLY ONETHIRD LOWER AT 2624 MILLION HAD THE REORGANIZATION BEEN COMPLETED US HOME SAID IN THE PROSPECTUS MR STRUDLER WHO NOTES THAT CREDITORS GAVE SENIOR MANAGEMENT A VOTE OF CONFIDENCE BY REQUIRING THREEYEAR CONTRACTS SAYS HE THINKS US HOME DID MISS OUT ON GOOD DEALS THAT WENT TO COMPETITORS BUT IT NOW WILL HAVE THE FINANCIAL MUSCLE TO COMPETE THE COMPANY BELIEVES THAT IT WILL HAVE OPPORTUNITIES PRESENTED TO IT THAT MIGHT HAVE GONE ELSEWHERE BEFORE HE SAYS I THINK WE'LL BE ABLE TO BE A LEADER IN THIS INDUSTRY 9306210183 930621 BUSINESS BRIEF SPRINGS INDUSTRIES' BID FOR FIELDCREST IS CALLED UNACCEPTABLE BY TRUST EDEN NC THE CONTROLLING INVESTOR IN FIELDCREST CANNON INC PUT INTO DOUBT A BID BY SPRINGS INDUSTRIES INC TO TAKE OVER THE TEXTILE COMPANY THE DUMAINES TRUST CALLED THE SPRINGS PROPOSAL NOT ACCEPTABLE AND ASKED THE FORT MILL SC TEXTILE CONCERN TO CONTACT THE TRUST'S INVESTMENT BANKER SMITH BARNEY HARRIS UPHAM & CO IN A WRITTEN RELEASE ISSUED LATE FRIDAY DUMAINES OWNS 664 OF THE VOTING EQUITY OF AMOSKEAG CO WHICH IN TURN CONTROLS ABOUT 81 OF FIELDCREST'S VOTING STOCK FIELDCREST HAS SAID IN MAY SPRINGS PROPOSED TO BUY FIELDCREST AND AMOSKEAG FOR 345 MILLION IN CASH AND STOCK DUMAINES OFFICIALS WOULDN'T RETURN CALLS SEEKING A COMMENT A SPRINGS SPOKESMAN SAID THE COMPANY'S INTEREST IN THE ACQUISITION HASN'T ABATED BUT WOULDN'T COMMENT FURTHER A FIELDCREST SPOKESMAN WOULDN'T COMMENT A SPOKESMAN FOR THE AMALGAMATED CLOTHING AND TEXTILE WORKERS WHICH REPRESENTS 4500 FIELDCREST WORKERS SAID THE MOVE REPRESENTS FURTHER EFFORTS BY DUMAINES TO TAKE THE SPRING'S BID OUT OF PUBLIC VIEW KAY NORWOOD AN ANALYST WITH INTERSTATE/JOHNSON LANE IN CHARLOTTE NC SAID THE DUMAINES MANEUVER MAY BE AN ATTEMPT TO ATTRACT A HIGHER BID THE DUMAINES ANNOUNCEMENT FOLLOWS A SUCCESSFUL MOVE BY THE TRUST THURSDAY TO INCREASE ITS INFLUENCE ON FIELDCREST'S BOARD THE TRUST BOOSTED THE SIZE OF THE BOARD TO 17 FROM 12 CONTROLLING 10 OF THE 16 BOARD SEATS CURRENTLY FILLED PREVIOUSLY THE TRUST HAD HELD SIX SEATS SEPARATELY SPRINGS SAID AFTER THE MARKETS CLOSED FRIDAY IT WILL POST LOWERTHANEXPECTED EARNINGS FOR THE SECOND QUARTER THE COMPANY SAID SALES OF HOME FURNISHINGS HAVE BEEN HURT BY DEFLATED CONSUMER CONFIDENCE SPRINGS SAID IT PLANS TO POST A PROFIT OF 40 CENTS TO 50 CENTS A SHARE COMPARED WITH 63 CENTS A SHARE A YEAR EARLIER ANALYSTS HAD FORECAST EARNINGS OF 73 CENTS TO 84 CENTS A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY FIELDCREST SHARES FELL 375 CENTS TO 2850 9306210182 930621 WORK & FAMILY A SPECIAL REPORT ON THE JOB THE ENFORCERS CORPORATE WORKFAMILY COPS MAKE SURE MANAGERS DON'T FALL BACK ON THEIR TRADITIONAL WAYS BY JULIE AMPARANO LOPEZ WILMINGTON DEL CINDY JOHNSON FELT AS THOUGH SHE HAD JUST BEEN SLAPPED JUST BACK FROM A SIXMONTH MATERNITY LEAVE MS JOHNSON LISTENED IN DISBELIEF AS THE DUPONT CO MANAGER CASUALLY STATED THAT HE HAD FILLED HER POSITION HE JUST SHRUGGED HIS SHOULDERS AND ACTED AS IF NOTHING SERIOUS HAD HAPPENED MS JOHNSON RECALLS A CUSTOMERSERVICE REPRESENTATIVE THE 35YEAROLD MS JOHNSON HAD TAKEN HER LEAVE UNDER A NEW DUPONT POLICY GIVING ALL EMPLOYEES UP TO SIX MONTHS OF UNPAID PARENTAL LEAVE WITHOUT JEOPARDIZING THEIR JOBS YET HERE SHE STOOD WITHOUT A MEANINGFUL JOB THE MANAGER OFFERED MS JOHNSON TWO CHOICES SHE COULD RETURN AT HER OLD PAY TO A LOWERRANKING POSITION OR HE COULD GIVE HER AN OFFICE AND TELEPHONE BUT NO WORK UNTIL ANOTHER JOB OPENED ELSEWHERE AT THE CHEMICAL GIANT'S HEADQUARTERS HERE IN A DAZE MS JOHNSON WALKED OVER TO THE COMPANY'S WORK AND FAMILY OFFICE AND PETITIONED FAITH WOHL ITS DIRECTOR FOR HELP AFTER A SERIES OF EMERGENCY MEETINGS MS WOHL FOUND MS JOHNSON A POSITION IN THE WORK AND FAMILY OFFICE MS WOHL ALSO PERSUADED MS JOHNSON'S FORMER BOSS TO FOOT THE BILL FOR HER SALARY FAITH SAVED ME SAYS MS JOHNSON WHO NOW HELPS OTHER WORKERS ARRANGE THEIR FAMILY LEAVES FAITH WOHL EPITOMIZES A NEW KIND OF CRUSADER SHE IS A CORPORATE COP UPHOLDING WORKFAMILY POLICIES FOR 90000 DUPONT WORKERS NATIONWIDE IT'S A JOB THAT'S RELATIVELY NEW IN COMPANIES AND ONE THAT'S GROWING QUICKLY THERE ARE PROBABLY ABOUT 200 CORPORATE COPS WALKING THE WORKFAMILY BEAT THESE DAYS JUST ABOUT ALL OF THEM CREATED IN THE PAST FOUR YEARS ESTIMATES THE FAMILIES AND WORK INSTITUTE IN NEW YORK AND THE NUMBER IS EXPECTED TO EXPAND FURTHER AS MORE COMPANIES SET UP WORKFAMILY PROGRAMS MAJOR COMPANIES INITIALLY HIRED SUCH MANAGERS TO SIMPLY ADDRESS WORKFAMILY CONFLICTS TO RAISE PEOPLE'S AWARENESS OF THE ISSUE AND TO DEVISE PROGRAMS THAT COULD HELP EMPLOYEES BUT COMPANIES HAVE FOUND THAT WASN'T ENOUGH SO THESE EXECUTIVES HAVE BECOME ENFORCERS WITH A MISSION TO ERADICATE MANAGEMENT'S ENTRENCHED RESISTANCE TO FLEXIBLE SCHEDULES WORKATHOME ARRANGEMENTS JOB SHARING AND PARENTAL LEAVES DEVELOPING WORKFAMILY PROGRAMS IS EASY SAYS CAROL SLADEK WHO HEADS WORKFAMILY CONSULTING FOR CONSULTANTS HEWITT ASSOCIATES IN LINCOLNSHIRE ILL CONVINCING MANAGERS THAT EMPLOYEES NEED THEM AND SHOULD HAVE THEM IS THE TOUGH PART UNFORTUNATELY IT'S CONSTANT COMBAT WITH TOP EXECUTIVES AND THE MIDDLE MANAGERS THE ABILITY TO ENFORCE POLICIES OF COURSE IS ONLY AS GOOD AS THE POWER OF THE ENFORCER AT THE TYPICAL COMPANY THE WORKFAMILY COP REPORTS TO THE HEAD OF HUMAN RESOURCES WHO IN TURN REPORTS TO THE CHIEF EXECUTIVE BUT THE ENFORCER ALSO OFTEN HAS THE ABILITY TO GO STRAIGHT TO THE TOP OR AT THE LEAST TO PUT RECALCITRANT MANAGERS ON RECORD FOR OBSTRUCTING CHANGE AT PRUDENTIAL INSURANCE CO OF AMERICA IN NEWARK NJ FOR INSTANCE MANAGERS HAVE SOME LATITUDE IN IMPLEMENTING WORKFAMILY PROGRAMS BUT ESTELLE HOLZER THE COMPANY'S WORKFAMILY MANAGER SAYS THAT IF A MANAGER REFUSES TO FOLLOW THE GUIDELINES SHE CAN GIVE THE MANAGER A BLACK MARK IN HIS OR HER PERSONNEL FILES HURTING ANY CHANCES FOR PROMOTIONS AND PAY RAISES THE MESSAGE CAN GET ACROSS REAL FAST MS HOLZER SAYS AT DUPONT MS WOHL WHO REPORTS TO THE VICE PRESIDENT OF HUMAN RESOURCES SAYS THAT GENTLE PERSUASION USUALLY WORKS IN PERSUADING RELUCTANT MANAGERS TO FOLLOW DUPONT'S WORKFAMILY POLICIES BUT IF A MANAGER BLATANTLY REFUSES TO ABIDE BY THE NEW POLICIES MS WOHL CAN TAKE THE MATTER STRAIGHT TO DUPONT'S CHAIRMAN EDGAR WOOLARD A THREAT THAT SHE HAS NEVER HAD TO CARRY OUT I'D PREFER NOT TO CREATE AN ENFORCEMENT ENVIRONMENT SAYS THE 57YEAROLD MS WOHL I WANT PEOPLE TO UNDERSTAND AND BELIEVE IN WORKFAMILY POLICIES INSTEAD OF BEING AFRAID OF THE LAW AND COMPANY POLICY SO FAR IT HAS WORKED BUT ONE DAY IT MIGHT GET TO THE POINT WHERE SOMEONE ABSOLUTELY REFUSES TO FOLLOW THE POLICIES AND I'LL HAVE TO TAKE MATTERS TO THE TOP USING A COMBINATION OF CARROTS AND STICKS MS WOHL HAS HAD PLENTY OF VICTORIES SHE HAS WON FLEXIBLE SCHEDULES FOR EMPLOYEES WITH CHILDREN OR ELDERLY PARENTS AT HOME SHE ALSO HAS HELPED MEN GET FAMILY LEAVE AFTER THEIR BOSSES INCORRECTLY INSISTED THAT THE POLICY APPLIES ONLY TO WOMEN AS A RESULT OF SUCH EFFORTS DUPONT MADE THE TOP 10 LIST LAST YEAR OF A FAMILYFRIENDLY INDEX ORGANIZED BY THE FAMILIES AND WORK INSTITUTE STILL MS WOHL WHO BECAME DUPONT'S FIRST HEAD OF WORKFAMILY INITIATIVES IN 1989 SAYS SHE FACES A NEW CHALLENGE EVERY DAY THE JOB OF THE WORKFAMILY MANAGER IS TO OPEN OTHER MANAGERS' EYES SHE SAYS TO CONVINCE THEM THAT WORK CAN BE DONE IN OTHER WAYS CHANGING A MINDSET CAN BE PARTICULARLY DIFFICULT AT A CORPORATION LIKE DUPONT WHERE MEN CONSTITUTE 76 OF THE WORK FORCE AND THE COMPANY FOLLOWED TRADITIONAL WORK ARRANGEMENTS FOR YEARS WE WERE UPSETTING THE APPLE CART EXPLAINS MS WOHL CONFLICT WILL HAPPEN WHEN YOU DO THINGS DIFFERENTLY ONE RECENT FIGHT CONCERNED SEVERAL HUNDRED EMPLOYEES WHO WORKED REDUCED HOURS MOST OF THE WORKERS HAD ORIGINALLY SOUGHT PARTTIME HOURS TO SPEND MORE TIME WITH THEIR CHILDREN BUT BECAUSE DUPONT DIDN'T HAVE A FORMAL PARTTIME WORK POLICY OVER THE YEARS MANAGERS HAVE CATEGORIZED THE EMPLOYEES AS CONTRACT WORKERS WITHOUT ANY BENEFITS OR JOB SECURITY BUT IN JULY 1991 EVEN THEIR PARTTIME STATUS WAS JEOPARDIZED WHEN DUPONT DECIDED TO ELIMINATE ALL CONTRACT WORKERS MS WOHL SAYS SHE SPENT MONTHS GOING FROM ONE MANAGEMENT LEVEL TO ANOTHER TRYING TO SAVE THE WORKERS' JOBS SHE FINALLY FOUND AN OFFICIAL WHO RESTORED THE PEOPLE TO PERMANENT EMPLOYEE STATUS WITH BENEFITS I THINK THIS HAS BEEN MY BIGGEST ACCOMPLISHMENT AT DUPONT SAYS MS WOHL WHO PREVIOUSLY WAS A DUPONT PUBLICRELATIONS DIRECTOR AND THE OWNER OF A SMALL YEARBOOKPUBLISHING BUSINESS PERHAPS THE MOST DIFFICULT CONFLICT HOWEVER WAS ONE THAT SHE ENCOUNTERED EARLY IN HER TENURE FOUR MONTHS AFTER TAKING HER WORKFAMILY POST MS WOHL HELPED TO SHATTER DUPONT'S LONGTIME POLICY GOVERNING MATERNITY LEAVE THE OLD POLICY LET A WOMAN TAKE TWO MONTHS OFF WITHOUT PAY BUT ONLY IF HER SUPERVISOR CONSENTED A SUPERVISOR COULD VETO ANY LEAVE BEYOND WHAT WAS MEDICALLY NECESSARY IF IT SEEMED TOO INCONVENIENT MS WOHL PUSHED TO CREATE A SIXMONTH FAMILYLEAVE POLICY OPEN TO ALL EMPLOYEES AFTER A 1988 INTERNAL SURVEY SHOWED BOTH MEN AND WOMEN WANTED MORE TIME WITH A NEW BABY BUT THE NEW POLICY ADOPTED IN APRIL 1989 IMMEDIATELY DREW OPPOSITION FROM ALL LEVELS OF MANAGEMENT MS WOHL REMEMBERS ONE HUMANRESOURCES OFFICIAL ARGUED THAT A SIXMONTH LEAVE WAS TOO LONG HE QUESTIONED HOW MANAGERS COULD POSSIBLY COVER SUCH LONG DEPARTURES MS WOHL SAYS SHE RESPONDED HOW DO YOU COVER FOR SOMEONE WHEN THEY HAVE A HEART ATTACK WITH A MATERNITY LEAVE YOU HAVE TIME TO PLAN WITH A HEART ATTACK YOU DON'T IN CASES OF MEDICAL EMERGENCIES SHE DISCOVERED MANAGERS USED TRAINEES OR DIVIDED THE WORK AMONG SEVERAL WORKERS THE SAME ARRANGEMENT COULD WORK FOR EMPLOYEES ON FAMILY LEAVE SHE REASONED THE HUMANRESOURCES OFFICIAL FINALLY STOPPED SQUAWKING THEN SOME PLANT MANAGERS REFUSED TO GRANT THE LONGER LEAVES PARTICULARLY TO MALE WORKERS EVEN THOUGH DUPONT HAD DECIDED THAT ALL EMPLOYEES WERE ENTITLED TO IT MS WOHL SAYS SHE AND HER TEAM HAD TO MAKE NUMEROUS VISITS TO PLANTS AND OFFICES ACROSS THE COUNTRY TO ENFORCE THE NEW RULE MS WOHL ALSO HAD TO STRUGGLE TO PERSUADE MANAGERS TO ALLOW WORKERS TO ADOPT MOREFLEXIBLE SCHEDULES MANY MANAGERS BECAME DISTRESSED OVER THE IDEA OF GRANTING NONTRADITIONAL HOURS OR PERMITTING THEIR SUBORDINATES TO WORK FROM HOME SUSAN O MORAN A DUPONT WORKFAMILY SENIOR SPECIALIST SAYS CERTAIN SENIOR MANAGERS FEEL THAT I HAD TO DO IT THIS WAY SO OTHERS WILL HAVE TO DO IT THIS WAY' EVEN BOSSES WHO SYMPATHIZE WITH THE NEED TO BALANCE WORK AND FAMILY LIVES OFTEN FEEL SQUEEZED BY ALTERED SCHEDULES BECAUSE THEY ARE TRYING TO GET MORE DONE WITH FEWER PEOPLE AT FIRST MS WOHL SAYS MANY MANAGERS WOULDN'T ALLOW HER AND HER WORKFAMILY PATROL TO DISCUSS FLEXIBLE HOURS DIRECTLY WITH THEIR SUBORDINATES THEY FINALLY RELENTED BUT MADE IT CLEAR THEY WERE DUBIOUS DURING AN ADDRESS TO ABOUT 20 MANAGERS AT A TROY MICH AUTOMOTIVEPRODUCTS PLANT IN 1990 ONE MANAGER GRILLED MS WOHL ABOUT HER DEMANDS FOR FLEXIBLE SCHEDULES WHAT IF EVERYONE WANTED TO WORK PART TIME HE ASKED ISN'T PRODUCTIVITY BOUND TO DROP IF PEOPLE ARE WORKING PART TIME AREN'T FLEXIBLE SCHEDULES AN ADMINISTRATIVE NIGHTMARE HE WENT ON AND ON MS WOHL RECOLLECTS THESE WERE ALL HIS UNSPOKEN FEARS SHE SAYS BUT INTEREST IN FLEXIBLE SCHEDULES WAS OVERWHELMING AT THE TROY FACILITY MS WOHL SPENT WEEKS TALKING WITH PLANT MANAGERS ABOUT WAYS TO MAKE SUCH PROGRAMS WORK EMPLOYEES FORMED A WORKFAMILY COMMITTEE TO PUT ADDITIONAL PRESSURE ON MANAGEMENT TODAY THE TROY PLANT OFFERS FLEXIBLE SCHEDULES PARTTIME JOBS AND WORKATHOME ARRANGEMENTS FOR EVERYONE THIS WAS NOT SOMETHING THAT HAD BEEN DRIVEN FROM THE TOP DOWN MS WOHL SAYS THIS WAS A GRASSROOTS EFFORT BOSSES AT OTHER DUPONT LOCATIONS ALSO HAVE HAD TROUBLE ACCEPTING FLEXIBLE WORK ARRANGEMENTS DUPONT'S WORKFAMILY GROUP PROTECTED AN ADMINISTRATIVE ASSISTANT AT COMPANY HEADQUARTERS FROM A STERN REPRIMAND IN MARCH 1992 WHEN HER SON WOKE UP ILL ONE MORNING THE WOMAN CALLED HER BOSS AND OFFERED TO WORK AT HOME SHE FINISHED HER DAY'S WORK WHILE CARING FOR HER SICK CHILD YET WHEN SHE RETURNED TO THE OFFICE HER BOSS REPRIMANDED HER FOR WORKING AT HOME I SHOULD HAVE JUST CALLED IN SICK THE EMPLOYEE LAMENTS ANGRY AND FRUSTRATED SHE CALLED DUPONT'S WORKFAMILY OFFICE MS MORAN THE WORKFAMILY SPECIALIST IMMEDIATELY EXPLAINED TO THE WOMAN'S MANAGER THAT IT MADE MORE ECONOMIC SENSE FOR THE ADMINISTRATIVE ASSISTANT TO WORK AT HOME RATHER THAN WASTE A DAY BY CALLING IN SICK IN SIMILAR SITUATIONS MS MORAN SAYS SHE TRIES TO MAKE THE MANAGER SEE THE BUSINESS CASE CONVINCING TOP MANAGEMENT ISN'T ANY EASIER MS WOHL SAYS SHE RECENTLY DREW THE IRE OF A FINANCE DEPARTMENT EXECUTIVE WHEN SHE CITED FIGURES SHOWING THAT DUALCAREER COUPLES HAVE BECOME THE NATIONAL NORM I DON'T BELIEVE YOUR STATISTICS THE VICE PRESIDENT SNAPPED NOTING THAT THE FIGURES CAME FROM THE US DEPARTMENT OF LABOR MS WOHL ASKED THE EXECUTIVE WHY THEY WERE DIFFICULT TO BELIEVE THE EXECUTIVE SAID NO ONE IN HIS NEIGHBORHOOD CHURCH GROUP OR CIRCLE OF FRIENDS HAD WORKING WIVES HE AND MANY OTHER MALE MANAGERS WHOSE WIVES STAY AT HOME OFTEN DON'T COMPREHEND THE NEED FOR WORKFAMILY POLICIES THIS IS WHY WE FACE SUCH A CHALLENGE MS WOHL SAYS THE TOP PEOPLE RESPONSIBLE FOR POLICY AREN'T AFFECTED BY THIS THEY LIVE IN A TOTALLY DIFFERENT REALM TO HELP DUPONT MANAGERS HANDLE WORKFAMILY ISSUES BETTER SHE PLANS A COMPANYWIDE MANAGEMENTTRAINING PROGRAM LATER THIS YEAR AN ESTIMATED 20 BIG COMPANIES HAVE BEGUN TO PROVIDE SUCH TRAINING THE GOAL MS WOHL SAYS IS TO DO OURSELVES OUT OF A JOB MS LOPEZ IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S NEW YORK BUREAU 9306210181 930621 BIODENT TO REPORT STRONG EARNINGS RISE FOR FISCAL 4TH PERIOD RANCHO CORDOVA CALIF BIODENTAL TECHNOLOGIES CORP SAID ITS EARNINGS SHOULD MORE THAN TRIPLE IN ITS FISCAL FOURTH QUARTER FROM A YEAR EARLIER TO AT LEAST 250000 OR FIVE CENTS A SHARE SUCH RESULTS WOULD MEET OR EXCEED WALL STREET'S EXPECTATIONS SAID CURTIS ROCCA BIODENTAL'S PRESIDENT AND CHIEF EXECUTIVE NOTING THAT ANALYSTS HAVE BEEN PREDICTING FOURTHQUARTER EARNINGS OF TWO CENTS TO FIVE CENTS A SHARE FOR THE DISTRIBUTOR OF DENTAL SUPPLIES IT EARNED 78000 OR TWO CENTS A SHARE IN THE YEAREARLIER FOURTH QUARTER BIODENTAL'S SALES LIKELY CAME CLOSE TO 3 MILLION IN THE LATEST FOURTH QUARTER WHICH ENDED MARCH 31 COMPARED WITH 19 MILLION A YEAR EARLIER FOR THE FULL 1993 FISCAL YEAR BIODENTAL LIKELY WILL POST EARNINGS OF JUST UNDER 1 MILLION OR 17 CENTS TO 20 CENTS A SHARE ON SALES OF ABOUT 93 MILLION MR ROCCA SAID BIODENTAL IS STILL A SMALL PLAYER IN AN ESTIMATED 2 BILLION INDUSTRY BUT THE COMPANY'S IMPROVING SALES AND EARNINGS SHOULD CONTINUE IN THE CURRENT 1994 FISCAL YEAR MR ROCCA SAID ANALYSTS FORECAST NET INCOME FOR THE CURRENT YEAR AT 15 MILLION OR 28 CENTS A SHARE ON REVENUE OF 15 MILLION WE BELIEVE WE WILL MEET OR EXCEED THEIR NUMBERS AS WE HAVE IN THE PAST MR ROCCA SAID IN AN INTERVIEW BIODENTAL'S RAPID GROWTH STEMS FROM DIRECT SALES TO DENTISTS OF DISCOUNTED BRANDNAME PRODUCTS WHICH IT DELIVERS VIA OVERNIGHT PACKAGE SERVICES OR THE US MAIL THE COMPANY SELLS ITS PRODUCTS THROUGH DIRECTMAIL SOLICITATIONS CATALOG PROMOTIONS ADVERTISEMENTS IN TRADE JOURNALS AND TELEMARKETING CAMPAIGNS RATHER THAN DOORTODOOR AS MOST OF ITS COMPETITORS DO IT SERVES ITS 9000 CUSTOMERS WITH A STAFF OF 50 WORKING OUT OF A 25000SQUAREFOOT WAREHOUSE ONE AREA WHERE BIODENTAL IS SEEING SALES GROWTH IS DISPOSABLE DENTAL PRODUCTS WHICH ARE GAINING POPULARITY BECAUSE OF FEAR OF AIDS AND OTHER BLOODBORNE INFECTIOUS DISEASES BIODENTAL ALSO IS EXPANDING THROUGH ACQUISITIONS AND RECENTLY ANNOUNCED PLANS TO BUY A LEXINGTON KY DENTAL SUPPLY DISTRIBUTOR WITH 47 MILLION IN ANNUAL SALES TERMS OF THAT PURCHASE CALL FOR PAYMENT OF 200000 BIODENTAL COMMON SHARES MR ROCCA SAID 9306210180 930621 REVIEW & OUTLOOK EDITORIAL THE GREAT TOKYO EARTHQUAKE AFTER FRIDAY'S DRAMATIC VOTE OF NOCONFIDENCE IN THE GOVERNMENT OF PRIME MINISTER KIICHI MIYAZAWA ONE THING IS CERTAIN REGARDLESS OF WHO ALIGNS WITH WHOM AND EVEN WHO COMES OUT ON TOP OF THE JULY 18 ELECTIONS JAPAN HAS CHANGED UTTERLY JUST ASK KIICHI MIYAZAWA THE MOST PROMINENT CASUALTY FOR MORE THAN 40 YEARS HE HAS BEEN AN IMPECCABLE EXAMPLAR OF JAPANESE POLITICS A LOYAL DIETMAN OF THE RULING LIBERAL DEMOCRATIC PARTY HE DID EVERYTHING HE WAS SUPPOSED TO PUTTING IN TIME AT ALL THE RIGHT PLACES THE FINANCE MINISTRY THE FOREIGN MINISTRY THE MINISTRY OF TRADE AND INDUSTRY MR MIYAZAWA LOOKED FORWARD TO SERVING A TERM OR TWO AS PRIME MINISTER BEFORE SLIPPING INTO AN HONORABLE RETIREMENT INSTEAD LAST FRIDAY HE LEFT THE DIET IN TEARS THE LOSER OF A HUMILIATING VOTE OF NO CONFIDENCE HE WILL MAKE A SUBDUED FIGURE AT THE G7 SUMMIT THAT BEGINS IN TOKYO JULY 7 WHAT HAPPENED TO PUT IT SIMPLY THE RULES OF THE GAME CHANGED AND WHEN MR MIYAZAWA PLAYED BY THE OLD RULES IN THIS CASE BY BLOCKING ANY CHANGE TO THE POLITICAL SYSTEM IN WHICH HE WAS SCHOOLED A NEW SET OF PLAYERS KICKED HIM OFF THE TEAM THE REBELS WON FOR THREE REASONS FIRST THE COLD WAR HAS ENDED THROUGH THE LDP POSTWAR JAPAN THREW IN ITS LOT WITH THE WEST MAKING THE ALLIANCE WITH THE US THE CENTERPIECE OF FOREIGN POLICY THE LEFT MARGINALIZED ITSELF BY ITS CURIOUS ETHIC OF BEING AGAINST MOST THINGS BUT FOR NORTH KOREA SINCE 1955 THE LDP HAS SUPPLIED 19 CONSECUTIVE PRIME MINISTERS A WINNING STREAK OF STUNNING PROPORTIONS THE LDP WAS NOT ONLY THE NATURAL PARTY OF GOVERNANCE IT WAS THE ONLY PARTY CONSIDERED CAPABLE OF GOVERNING BUT WITH THE SOVIET UNION IN PIECES AND RUSSIA MORE SUPPLICATING THAN SINISTER ONE OF THE MAJOR REASONS FOR SUPPORTING THE LDPNATIONAL SECURITY NO LONGER SEEMED QUITE SO COMPELLING JAPANESE BEGAN TO LOOK FOR SOMETHING MORE SUITABLE TO MODERN JAPAN'S NEEDS A HIGHER QUALITY OF LIFE A GREATER DEGREE OF INTERNATIONAL ENGAGEMENT A MORE RESPONSIVE GOVERNMENT TO THESE QUESTIONS LDP ELDERS HAD NO ANSWERS OR MUCH INTEREST THEIR INDIFFERENCE CAUGHT UP WITH THEM FRIDAY SECOND JAPANESE SOCIETY ITSELF IS CHANGING AND THE MODEL THAT THE LDP REPRESENTS NO LONGER FITS THE SOCIETY THAT IS EMERGING CONSUMERS ARE NO LONGER TOLERANT OF GOVERNMENT PROTECTIONS OF A TINY RURAL MINORITY WHICH DRIVE UP THE COST OF RICE AND LAND NOR ARE THEY WILLING TO LOOK THE OTHER WAY AGAIN AND AGAIN AS THEIR ELECTED OFFICIALS DISTORT THE ECONOMY FOR PERSONAL GAIN BILLIONS OF YEN WERE ADDED TO PUBLIC WORKS COSTS BECAUSE THE CONSTRUCTION FIRMS HAD TO PAY THEIR LDP MASTERS TO GET THEM CONTRACTS WHO NEEDED THIS NONSENSE IT WAS ONE THING TO SEND THE LDP BACK INTO OFFICE WHEN THE GOVERNMENT DELIVERED THE ECONOMIC GOODS IN THE CURRENT ECONOMIC CLIMATE OF DECLINING CONFIDENCE AND GROWING FEAR OF UNEMPLOYMENT THE CASE FOR LOYALTY HAS BEEN PROFOUNDLY SHAKEN THE FINAL FACTOR WAS THE EMERGENCE OF PRESENTABLE SENSIBLE POLITICIANS TO CHALLENGE THE STATUS QUO YES TSUTOMU HATA AND ICHIRO OZAWA LEADERS OF THE LDP REBEL BRIGADE ARE UNLIKELY REVOLUTIONARIES MR OZAWA WAS THE PROTEGE FIRST OF DISGRACED FORMER PRIME MINISTER KAKUEI TANAKA AND THEN OF DISGRACED POWERBROKER SHIN KANEMARU MR HATA IS A FORMER FINANCE MINISTER WHO ONCE ARGUED AGAINST ALLOWING BEEF IMPORTS ON GROUNDS THAT JAPANESE INTESTINES ARE UNIQUE STILL BOTH MEN RECOGNIZED AS THEIR ELDERS DID NOT THE TECTONIC FORCES THAT WERE RESHAPING JAPAN THE NARROW ISSUE THAT BROUGHT MR MIYAZAWA DOWN WAS WHETHER JAPAN SHOULD CHANGE ITS ELECTORAL SYSTEM TO SINGLESEAT DISTRICTS OR A MIX OF THESE AND PROPORTIONAL REPRESENTATION THE REAL ISSUE THOUGH WAS WHETHER JAPAN WOULD CHANGE OR NOT CHANGE FOR NOW THE ODDS MUST BE ON CHANGE AS IN ITALY THE COUNTRY IS OPENING UP TO NEW POLITICAL FORCES MR MIYAZAWA SIMPLY FAILED TO SENSE THEM DESPITE THE DRAMA OF FRIDAY'S VOTE AND ALL THE DEALMAKING THAT IS NOW SHAKING THE HALLS OF NAGATASHO DON'T COUNT THE LDP OUT IT STILL HAS DEEP POCKETS AND THE POWER OF INCUMBENCY NOR IS IT AT ALL OBVIOUS THAT A COALITION CAN BE STITCHED TOGETHER FROM THOSE WHO SHARE ONLY AN ANTIPATHY TOWARD THE RULING PARTY AND A DESIRE TO MOVE INTO THE CABINET AND IF SUCH A COALITION DID TAKE POWER IT MIGHT BE QUERULOUS AND UNSUCCESSFUL BUT THAT'S A PRICE DEMOCRACIES PAY FOR THE PRIVILEGE OF THROWING THE RASCALS OUT THE SHAPE OF THE POLITICAL LANDSCAPE THAT WILL EMERGE FROM THIS EARTHQUAKE IS STILL UNCERTAIN WHAT IS CERTAIN IS THAT THE JAPANESE POLITICAL SYSTEM CAN NO LONGER IGNORE THE RUMBLINGS OF VOTER DISSATISFACTION 9306210179 930621 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED NINE NEW LISTINGS INCLUDING FIVE INITIAL PUBLIC OFFERINGS THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 11 NEW LISTINGS INCLUDING NINE INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED 11 INITIAL OFFERINGS THE BIG BOARD SAID IT BEGAN TRADING THREE CLOSEDEND MANAGEMENT FUNDS AS INITIAL OFFERINGS AMERICAN MUNICIPAL INCOME PORTFOLIO INC MINNEAPOLIS UNDER XAA AND EMERGING MARKETS INCOME FUND II INC NEW YORK UNDER EDF AND PUTNAM MANAGED HIGH YIELD TRUST BOSTON UNDER PTM THE BIG BOARD ALSO BEGAN TRADING TWO OTHER INITIAL OFFERINGS LIBBEY INC TOLEDO OHIO A PRODUCER OF GLASS TABLEWARE UNDER LBY AND THORNBURG MORTGAGE ASSET CORP SANTA FE NM A REAL ESTATE INVESTMENT TRUST UNDER TMA THE BIG BOARD ALSO BEGAN TRADING CAPSURE HOLDINGS CORP CHICAGO A PROPERTY AND CASUALTY INSURANCE HOLDING COMPANY UNDER CSH AND SOUTHERN CALIFORNIA WATER CO SAN DIMAS CALIF A PRODUCER AND DISTRIBUTOR OF WATER UNDER SCW WHICH BOTH PREVIOUSLY TRADED OVERTHECOUNTER AND WESTCORP IRVINE CALIF A FINANCIAL SERVICES HOLDING COMPANY UNDER WES WHICH PREVIOUSLY TRADED ON THE AMEX AMERICAN DEPOSITARY SHARES OF MADERAS Y SINTETICOS SA SANTIAGO CHILE BEGAN TRADING ON THE BIG BOARD UNDER MYS THE MAKER OF RAW WOOD MELAMINE LAMINATED AND WOOD VENEERED PARTICLE BOARD CURRENTLY TRADES ON THE SANTIAGO STOCK EXCHANGE AND ELECTRONIC STOCK EXCHANGE OF CHILE THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET BARRETT BUSINESS SERVICES INC PORTLAND ORE A TEMPORARY AND LONGTERM EMPLOYEE SERVICES CONCERN UNDER BBSI IMAGE BUSINESS SYSTEMS CORP NEW YORK A SOFTWARE SYSTEMS CONCERN UNDER IBSC NORTHWESTERN STEEL AND WIRE CO STERLING ILL A STEEL ROD AND FABRICATED WIRE PRODUCTS PRODUCER UNDER NWSW ECCS INC TINTON FALLS NJ A COMPUTER SYSTEMS CONCERN UNDER ECCS BELL MICROPRODUCTS INC SAN JOSE CALIF A SEMICONDUCTOR AND COMPUTER PRODUCTS CONCERN UNDER BELM COMMERCIAL BANK OF NEW YORK NEW YORK A STATECHARTERED BANK UNDER CBNY NORWOOD PROMOTIONAL PRODUCTS INC SAN ANTONIO A CUSTOM IMPRINTED PROMOTIONAL PRODUCTS CONCERN UNDER NPPI DONNKENNY INC NEW YORK A WOMEN'S SPORTWEAR AND SLEEPWEAR CONCERN UNDER DNKY AND INTERNATIONAL IMAGING MATERIALS INC AMHERST NY A MAKER OF COLOR THERMAL TRANSFER RIBBONS AND MONOCHROME BAR CODE THERMAL TRANSFER RIBBONS UNDER IMAK THE FOLLOWING MOVED UP FROM THE NASDAQ SMALL CAP MARKET TO THE NATIONAL MARKET SYSTEM AMERICAN SAVINGS BANK OF FLORIDA FSB MIAMI A FEDERALLY CHARTERED SAVINGS BANK UNDER ASFL AMERICAN DEPOSITARY RECEIPTS OF BANCO DE GALICIA Y BUENOS AIRES SA BUENOS AIRES A PRIVATE COMMERCIAL BANK BEGAN TRADING ON THE NASDAQ NATIONAL MARKET UNDER BGALY THE AMERICAN STOCK EXCHANGE BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS BROCK EXPLORATION CORP NEW ORLEANS LA AN OIL AND GAS PROPERTIES CONCERN UNDER BKE AND THE FOLLOWING CLOSEDEND MANAGEMENT FUNDS VAN KAMPEN MERRITT MASSACHUSETTS VALUE MUNICIPAL INCOME TRUST OAKBROOK TERRACE ILL UNDER VMV VAN KAMPEN MERRITT NEW JERSEY VALUE MUNICIPAL INCOME TRUST OAKBROOK TERRACE ILL UNDER VJV VAN KAMPEN MERRITT OHIO VALUE MUNICIPAL TRUST OAKBROOK TERRACE ILL UNDER VOV MINNESOTA MUNICIPAL INCOME PORTFOLIO INC MINNEAPOLIS UNDER MXA BLACKROCK BROAD INVESTMENT GRADE 2009 TERM TRUST INC NEW YORK UNDER BCT NUVEEN CALIFORNIA PREMIUM INCOME MUNICIPAL FUND CHICAGO UNDER NCU NUVEEN FLORIDA PREMIUM INCOME MUNICIPAL FUND CHICAGO UNDER NFO NUVEEN NEW JERSEY PREMIUM INCOME MUNICIPAL FUND 3 CHICAGO UNDER NJU NUVEEN NEW YORK PREMIUM MUNICIPAL INCOME FUND CHICAGO UNDER NRY AND NUVEEN PENNSYLVANIA PREMIUM INCOME MUNICIPAL FUND 3 CHICAGO UNDER NAP THE AMEX BEGAN TRADING CONVERTIBLE CAPITAL SECURITIES IN BANKERS TRUST NEW YORK CORP AND BEGINS TRADING OPTIONS TODAY ON SNAPPLE BEVERAGE CORP AND COLUMBIA HOSPITAL CORP THE CHICAGO BOARD OPTIONS EXCHANGE BEGINS TRADING OPTIONS TODAY ON COLUMBIA HOSPITAL CORP AND SNAPPLE BEVERAGE CORP AND INTEGRATED DEVICE TECHNOLOGY INC ON THURS JUNE 24 THE PACIFIC STOCK EXCHANGE BEGINS TRADING OPTIONS TODAY ON SNAPPLE BEVERAGE CORP 9306210178 930621 BUSINESS BRIEF ZILOG INC FIRM SEES 2NDQUARTER PROFIT MEETING ANALYSTS' FORECASTS ZILOG INC SAID IT EXPECTS EARNINGS FOR THE SECOND QUARTER ENDING JULY 4 WILL BE IN LINE WITH ANALYSTS' EXPECTATIONS OF ABOUT 34 CENTS A SHARE A YEAR EARLIER THE CAMPBELL CALIF COMPUTER CHIP MAKER REPORTED NET INCOME OF 36 MILLION OR 32 CENTS A SHARE ON REVENUE OF 333 MILLION THE COMPANY SAID THERE HAS BEEN SOME SOFTENING IN ITS DISK DRIVE AND MODEM SEGMENTS BUT THAT OTHER COMPUTER PERIPHERALS AND ITS CONSUMER BUSINESS REMAINED STRONG WITH CONTINUED REVENUE GROWTH IN THE SALE OF CHIPS FOR TELEVISION CLOSED CAPTIONING 9306210177 930621 COMPUTER FIRMS FROM US FACE JAPAN OBSTACLES APPLE'S PROBLEM IN SEEKING SCHOOL PACT UNDERSCORES BARRIER FOR AMERICANS BY DAVID P HAMILTON AND YUMIKO ONO STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO AS THE JAPANESE GOVERNMENT PREPARES TO MAKE A LARGE PURCHASE OF PERSONAL COMPUTERS FOR THE NATION'S ELEMENTARY AND HIGH SCHOOLS AS PART OF ITS 132 TRILLION YEN 12291 BILLION ECONOMIC STIMULUS PACKAGE US COMPANIES SUCH AS APPLE COMPUTER INC ARE SALIVATING AT THE PROSPECT OF GETTING A PIECE OF THE ACTION BUT TO SEE WHY APPLE AND OTHER US COMPANIES EAGER TO WIN A CHUNK OF JAPAN'S GOVERNMENT LARGESS MAY HAVE A HARD TIME LOOK NO FURTHER THAN SAKAI CITY A CITY OF 800000 PEOPLE NEAR OSAKA THERE A LOCAL POLITICIAN PUBLICLY DENOUNCED THE CITY'S EDUCATION COMMITTEE FOR DECIDING IN 1991 TO INTRODUCE FUJITSU LTD COMPUTERS TO JUNIOR HIGH SCHOOLS EVEN THOUGH LOCAL EXPERTS SAID APPLE'S COMPUTERS WERE BETTER JAPANESE GOVERNMENT PURCHASES OF FOREIGN GOODS AND SERVICES HAVE BECOME A HOT TRADE ISSUE BETWEEN THE US AND JAPAN JUST LAST WEEK THE TWO NATIONS ENDED AN INCONCLUSIVE FIRST ROUND OF NEGOTIATIONS TO OPEN JAPAN'S TIGHTLY CLOSED CONSTRUCTION MARKET TO FOREIGN COMPANIES US OFFICIALS HAVE SIMILARLY COMPLAINED THAT JAPAN HASN'T LIVED UP TO EARLIER TRADE AGREEMENTS RELATED TO GOVERNMENT PURCHASES OF SUPERCOMPUTERS AND SMALLER COMPUTERS SUCH AS PCS AND WORKSTATIONS THE ISSUE OF COURSE IS ALSO IMPORTANT TO US COMPANIES WHICH HAVE LONG CHARGED THAT INFORMAL BARRIERS SHUT THEM OUT OF MANY JAPANESE GOVERNMENT PURCHASING DECISIONS APPLE FOR INSTANCE ESTIMATES IT HAS ONLY A 5 SHARE OF THE JAPANESE PC MARKET IN PUBLIC EDUCATION COMPARED WITH AN ESTIMATED 10 SHARE IN THE UNIVERSITY MARKET WHERE THE COMPANY SAYS PEOPLE ARE FREER TO BUY THE COMPUTERS THEY WANT THE GOVERNMENT'S STATED INTENTION TO BUY A LARGE NUMBER OF PCS FOR SCHOOLS AS PART OF THE STIMULUS PACKAGE HAS INTENSIFIED MATTERS US INDUSTRY OFFICIALS SAY THEY EXPECT THE GOVERNMENT TO BUY 330000 PCS THOUGH GOVERNMENT OFFICIALS SAY THEY HAVEN'T DECIDED ON THE NUMBER FEW JAPANESE EVER HAVE ECHOED US COMPLAINTS ABOUT GOVERNMENT PURCHASING POLICIES BUT THAT CHANGED LAST WEEK WHEN SHUNEI HASEGAWA A SAKAI CITY CITY COUNCILMAN ACCUSED FELLOW CITY OFFICIALS OF FAVORING INFERIOR JAPANESEMADE COMPUTERS OVER APPLE'S MACINTOSH COMPUTER MR HASEGAWA SAID A PANEL OF CITY EXPERTS HAD FOUND THE MACINTOSH EASIER TO USE AND MORE CAPABLE THAN RIVAL MODELS FROM FUJITSU NEC CORP AND MATSUSHITA ELECTRIC INDUSTRIAL CO AMONG THE EXPERTS' COMPLAINTS THE FUJITSU COMPUTERS PRODUCED WAVERING IMAGES OPERATED SLOWLY AND COULDN'T BE LINKED TOGETHER THE MACINTOSH BY CONTRAST WAS SIMPLE TO USE CREATED BEAUTIFUL ANIMATIONS AND NETWORKED EASILY THE PANEL'S REPORT SAID THE FEELING WAS CLEAR THAT THE CITY SHOULD CHOOSE APPLE MR HASEGAWA SAID IN AN INTERVIEW BUT A SAKAI CITY OFFICIAL SAID THE PANEL REACHED NO CONCLUSION AND CONTENDED THAT THE MACINTOSH LACKED SUFFICIENT JAPANESELANGUAGE EDUCATIONAL SOFTWARE AFTER RECEIVING THE EXPERTS' REPORT THE CITY GOVERNMENT OPENED BIDDING AND THEN AWARDED THE CONTRACT TO FUJITSU WHICH DELIVERED 418 COMPUTERS LAST NOVEMBER FOR A TOTAL OF 190 MILLION YEN 18 MILLION MR HASEGAWA WHO IS UNABASHEDLY SEEKING PUBLICITY PRIOR TO BEGINNING A CAMPAIGN FOR A SEAT IN JAPAN'S LOWER HOUSE OF PARLIAMENT INSISTS HE IS RAISING THE ISSUE OUT OF PUBLIC SPIRIT DECISIONS BASED ON SUCH UNCLEAR REASONS WILL ONLY BECOME YET ANOTHER SOURCE OF JAPANUS TRADE FRICTION HE SAYS THE AMERICAN ELECTRONICS ASSOCIATION IN TOKYO WAS ALSO QUICK TO PUT OUT A NEWS RELEASE SUMMARIZING MR HASEGAWA'S REMARKS AMERICAN COMPANIES HAVE DEMONSTRATED NOT JUST THE EFFORT TO SELL IN JAPAN BUT THE FACT THAT THEY HAVE A CLEARLY COMPETITIVE PRODUCT SAID JOHN STERN THE AEA'S EXECUTIVE DIRECTOR IN TOKYO STILL THEY HAVEN'T WON BUSINESS DESPITE THE FACT THAT USERS PREFER THE AMERICAN PRODUCT 9306210176 930621 COMMODITIES COMMODITY PRICES HAVE BOTTOMED AND MAY PUSH COSTS HIGHER IN OVERALL ECONOMY SOME THINK BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR NOW INFLATION APPEARS BENIGN ON ALL FRONTS BUT SOME WALL STREET ECONOMISTS BELIEVE COMMODITY PRICES HAVE BOTTOMED AND MAY EVENTUALLY INJECT MODERATE UPWARD PRICE PRESSURE INTO THE OVERALL US ECONOMY NOTHING MAJOR THEY REASSURE BUT SOMETHING TO WATCH GIVING RISE TO THAT VIEW HAS BEEN THE PERSISTENT STRENGTH IN PRICES FOR PRECIOUS METALS GOLD SILVER PLATINUM AND PALLADIUM IN RECENT MONTHS AS WELL AS RECENT SIGNS OF RECOVERY IN MARKETS FOR SOYBEANS WHEAT CATTLE ORANGE JUICE AND COCOA LATE LAST WEEK FOR INSTANCE SOYBEAN FUTURES SOARED ON WEATHERRELATED DELAYS TO PLANTINGS IN THE MIDWEST WHILE TRADERS AT THE CHICAGO BOARD OF TRADE STOP SHORT OF PREDICTING A BULL MARKET IN SOYBEANS THEY SAY THAT RECENT INCLEMENT WEATHER AND GROWING INTERNATIONAL DEMAND FOR US BEANS MAKE FOR AT LEAST A MILD UPWARD TREND THE FIRMER TONE IN A NUMBER OF AGRICULTURAL PRODUCTS IN FACT HAS HELPED PUSH THE CLOSELY FOLLOWED COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS UP FROM RECENT LOWS AROUND 203 ON FRIDAY THE CRB INDEX CLOSED AT 20550 DOWN 008 COMMODITY PRICES HAVE BOTTOMED ASSERTS BEAR STEARNS CHIEF ECONOMIST LAWRENCE KUDLOW WHEN WE LOOK AT THE CRB WE SEE THAT IT WAS UNABLE TO DROP MUCH BELOW 200 EARLY THIS YEAR AND BELOW 203 IN ITS LATEST CORRECTION WE'VE ALSO SEEN THAT GOLD WHICH IS USUALLY THE FIRST INDICATOR FOR HIGHER COMMODITY PRICES HAS SHOWN STAYING POWER AT 370 AN OUNCE HE SAYS IF GOLD HAD DROPPED BACK TO 350 THAT WOULD HAVE WIPED OUT THE INFLATIONARY SIGNAL FOR COMMODITIES GOLD FOR AUGUST DELIVERY ROSE 30 CENTS FRIDAY TO SETTLE AT 37250 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE MR KUDLOW SAYS THE US ECONOMY WILL GROW FASTER IN THE SECOND HALF THAN MOST ANALYSTS PREDICT AND HE EXPECTS THIS GROWTH TO SHOW UP IN RISING COMMODITY PRICES OVER THE NEXT THREE TO SIX MONTHS THE CRB INDEX HAS TRADED IN A WIDE RANGE FROM SEVENYEAR LOWS OF AROUND 198 IN FEBRUARY TO RECENT HIGHS OF 21303 ON MARCH 22 AND 21156 ON MAY 11 THE INDEX'S RETREAT WAS LARGELY DUE TO WEAKENING ENERGY PRICES AND GENERALLY SOFTER BASE METAL PRICES TRADERS AND ANALYSTS SAY ENERGY PRICES HAVE BEEN WEAK AMID SIGNS THAT MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ARE NOT ADHERING TO THEIR OILOUTPUT QUOTAS AND AMID CONCERNS THAT IRAQ EVENTUALLY WILL BE ALLOWED BACK INTO THE PRODUCTION QUOTA SYSTEM BASE METALS ARE IN AMPLE SUPPLY WORLDWIDE BUT DEMAND FOR CRUDE OIL AND OTHER ENERGY PRODUCTS AS WELL AS FOR ALUMINUM ZINC AND OTHER BASE METALS IS EXPECTED TO PICK UP NEXT YEAR WITH ANTICIPATED TURNAROUNDS OF THE EUROPEAN AND JAPANESE ECONOMIES TRADERS SAY ENERGY DEMAND IN PARTICULAR IS LIKELY TO INCREASE SEASONALLY LATER THIS YEAR THEY SAY AT GOLDMAN SACHS FORECASTS ARE FOR AN INCREASE OF 10 OR MORE IN COMMODITY PRICES OVER THE NEXT 12 MONTHS MUCH OF THAT ANTICIPATED RISE WILL BE DEMANDDRIVEN THE INVESTMENT BANK PREDICTS NOTING THAT DEVELOPING NATIONS PARTICULARLY IN SOUTHEAST ASIA HAVE A GROWING APPETITE FOR IMPORTED RAW MATERIALS BUT ANY SHORTTERM RECOVERY IN COMMODITY PRICES WILL BE HELD BACK BY SLUGGISH GROWTH IN THE US EUROPE AND JAPAN WE'RE NOT GOING TO GET THE 20 TO 30 INCREASE IN COMMODITY PRICES THAT WOULD HAVE BEEN NORMAL IN TERMS OF PAST ECONOMIC RECOVERIES SAYS RAVI BULCHANDANI GOLDMAN SACHS'S SENIOR INTERNATIONAL ECONOMIST AND CHIEF COMMODITY ANALYST AMONG SOME OF GOLDMAN'S 12MONTH TO 18MONTH PRICE FORECASTS GOLD AT 410 AN OUNCE UP FROM ABOUT 372 CURRENTLY CRUDE OIL AT 2250 A BARREL AND AT 25 TO 30 A BARREL BY MIDDECADE COMPARED WITH CURRENT LEVELS OF AROUND 19 AND COPPER RISING TO 98 CENTS A POUND FROM AROUND 84 CENTS NOW MR BULCHANDANI BELIEVES THAT COMMODITIES ARE CHEAP BOTH IN RELATION TO THEIR ESTIMATED PRODUCTION COSTS AND IN COMPARISON TO VALUATIONS FOR FINANCIAL ASSETS ACCORDING TO GOLDMAN SACHS'S ESTIMATES CURRENT MARKET PRICES FOR A NUMBER OF SIGNIFICANT COMMODITIES INCLUDING WHEAT CORN COTTON COCOA ALUMINUM AND ZINC ARE SIGNIFICANTLY BELOW BENCHMARK COSTS OF PRODUCTION WHAT IS LIKELY TO BOOST COMMODITY PRICES GRADUALLY HE BELIEVES IS THE FACT THAT COMMODITYPRODUCING COMPANIES HAVE IDLED CAPACITY TO SUCH AN EXTENT IN RECENT YEARS OF SOFT PRICES THAT THESE COMPANIES WILL BE HARDPRESSED TO MEET ANY SURGE IN DEMAND MOREOVER HE SAYS DISTRESS SALES OF BASE METALS BY THE REPUBLICS OF THE FORMER SOVIET UNION HAVE PROBABLY PEAKED SUCH SALES HAVE DEPRESSED PRICES ON THE WORLD MARKET FOR ALUMINUM AND OTHER METALS WHILE COMMODITY PRICES MAY START RISING MR BULCHANDANI ADDS THE EFFECT ON THE OVERALL ECONOMY WILL BE MODERATE BECAUSE OF MAJOR PRODUCTIVITY GAINS IN CORPORATE AMERICA COMPANIES WILL BE ABLE TO ABSORB HIGHER RAW MATERIAL COSTS WITHOUT HAVING TO PASS THEM ON TO CONSUMERS TO ANY GREAT EXTENT THERE WILL BE SOME IMPACT PERHAPS ONETENTH TO TWOTENTHS OF A PERCENTAGE POINT ON THE CONSUMER PRICE INDEX FOR 1994 NOT ENOUGH THE GOLDMAN ECONOMIST SAYS TO REQUIRE ANY TIGHTENING OF FED MONETARY POLICY NOT SO SAYS MR KUDLOW THE BEAR STEARNS ECONOMIST THE FED WILL NEED TO SNUG UP INTEREST RATES HE SAYS AS A RESULT OF A RISING TREND IN GOLD AND OTHER COMMODITY PRICES AMONG OTHER IMPORTANT MARKETPRICE SIGNALS OTHER ANALYSTS QUESTION WHETHER COMMODITIES WILL LEAD INFLATION HIGHER I SEE VERY LITTLE PROSPECT OF ANY COMMODITYLED INFLATION WELL INTO 1994 SAYS WILLIAM O'NEILL SENIOR FUTURES STRATEGIST AT MERRILL LYNCH AND INTERNATIONAL STRATEGY & INVESTMENT AN ECONOMIC CONSULTING COMPANY BASED IN NEW YORK THINKS THE NEARTERM TREND IN THE CRB IS DOWN NOT UP THE CRB HAS DECLINED IN JULY IN EACH OF THE PAST NINE YEARS BY SIX POINTS ON AVERAGE SUGGESTING THAT IT COULD CRACK 200 INTERNATIONAL STRATEGY SAYS 9306210175 930621 TAX COURT GIVES US COMPANIES A BIG VICTORY RULING IN FANNIE MAE CASE BROADENS THE DEDUCTION FOR LOSSES ON HEDGES BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL HUNDREDS OF US CORPORATIONS WON A SIGNIFICANT VICTORY AS A RESULT OF A TAX COURT DECISION LAST WEEK IN FAVOR OF THE FEDERAL NATIONAL MORTGAGE ASSOCIATION THE COURT RULED THAT THE HEDGING LOSSES FANNIE MAE INCURRED IN 1984 AND 1985 WERE ORDINARY LOSSES AND COULD BE DEDUCTED FROM TAXABLE INCOME THE INTERNAL REVENUE SERVICE HAD CONTENDED THAT THESE WERE REALLY CAPITAL LOSSES USABLE ONLY TO OFFSET CAPITAL GAINS AND WAS SEEKING 131 MILLION FROM FANNIE MAE THURSDAY'S RULING REVIEWED BY ALL 18 TAX COURT JUDGES REMOVES A CLOUD OF UNCERTAINTY FROM A BROAD ARRAY OF HEDGE TRANSACTIONS AT OTHER COMPANIES ESPECIALLY THOSE USED TO SECURE THE COST OF INVENTORY THE CASE IS BEING CHEERED BY AGRICULTURAL COMPANIES AND SECURITIES FIRMS WHICH ROUTINELY USE FINANCIAL INSTRUMENTS TO HEDGE OR PROTECT THEMSELVES AGAINST CHANGES IN THE VALUE OF HOLDINGS RANGING FROM WHEAT AND METALS TO STOCKS AND BONDS THIS RULING IS ESPECIALLY IMPORTANT FOR BANKS AND FINANCIAL INSTITUTIONS SAID ROBERT WILLENS LEHMAN BROTHERS' TAX SPECIALIST INDEED THE CHICAGO BOARD OF TRADE AND THE CHICAGO MERCANTILE EXCHANGE WHICH TRADE POPULAR FINANCIAL CONTRACTS USED FOR HEDGING BOTH FILED BRIEFS SUPPORTING FANNIE MAE I USED TO HEAR COMPANIES SAY WHY DOES THE GOVERNMENT WANT TO BANKRUPT US' SAID STANLEY SCHAEFER OF MERRILL LYNCH'S CORPORATE TAX DEPARTMENT IN FANNIE MAE'S CASE THE COMPANY A GOVERNMENTSPONSORED PROVIDER OF CREDIT GUARANTEES ON HOME MORTGAGES HAD SOLD TREASURY BOND FUTURES TO OFFSET CHANGES IN THE PRICE OF MORTGAGES IT HAD COMMITTED TO BUY THE AGENCY ALSO HEDGED THE BORROWINGS UNDERTAKEN TO PAY FOR THE MORTGAGES BOTH MID1980S POSITIONS RESULTED IN SUBSTANTIAL LOSSES WE ARE PLEASED THAT THE TAX COURT FOUND IN FAVOR OF FANNIE MAE'S POSITION SAID TIMOTHY HOWARD CHIEF FINANCIAL OFFICER THE RULING DOESN'T AFFECT EARNINGS IN NEW YORK STOCK EXCHANGE TRADING ON FRIDAY FANNIE MAE'S STOCK FELL 75 CENTS TO 7925 A SHARE REVERSING THURSDAY'S GAIN OF 75 CENTS IN ITS RULING THE TAX COURT BROADLY DEFINED THE TYPES OF ASSETS ON WHICH HEDGES WOULD RECEIVE ORDINARY TAX TREATMENT INCLUDING ACCOUNTS RECEIVABLE OR MONEY OWED TO A COMPANY FURTHER THE COURT GRANTED COMPANIES GREATER DISCRETION IN SETTING UP HEDGES BY REJECTING THE IRS'S NARROW CONTENTION THAT HEDGES HAD TO BE SUBSTANTIALLY THE SAME AS THE ASSETS BEING HEDGED WHILE THE COURT APPROVED FANNIE MAE'S USE OF HEDGES TO SECURE THE COST OF ITS DEBENTURES IT LEFT OPEN THE TAX TREATMENT OF LIABILITY HEDGES SUCH AS INTERESTRATE SWAPS SUCH SWAPS NOW ARE ROUTINELY USED BY CORPORATIONS ISSUING LONGTERM BONDS TO REDUCE THEIR INTEREST COSTS FROM LONGTERM FIXED RATES TO SHORTTERM FLOATING RATES ACCORDING TO THE INTERNATIONAL SWAP DEALERS ASSOCIATION A TRADE GROUP IN COMING TO ITS DECISION THE TAX COURT SUBSTANTIALLY EXPANDED A CONTROVERSIAL 1988 SUPREME COURT DECISION ARKANSAS BEST VS COMMISSIONER WHICH HAD LIMITED ORDINARY TAX TREATMENT OF LOSSES MANY CORPORATIONS WERE SO SPOOKED BY THAT DECISION THAT THEIR TREASURY DEPARTMENTS NOW REGULARLY RUN HEDGING STRATEGIES PAST THEIR TAX EXPERTS UNION CARBIDE CORP'S TREASURY DEPARTMENT FOR EXAMPLE WHICH DID INTERESTRATE SWAPS OF 1 BILLION FACE VALUE IN 1992 ON TOTAL LIABILITIES OF 37 BILLION HOLDS QUARTERLY TAX PLANNING MEETINGS WITH ITS VICE PRESIDENT OF TAXES DESPITE THE GOOD NEWS COMPANIES ARE RELUCTANT TO GLOAT IN LARGE PART BECAUSE THE IRS HAS BEEN AGGRESSIVELY AUDITING COMPANIES' HEDGING STRATEGIES FOR THE PAST TWO YEARS THIS RULING OPENS THE WAY FOR A LEGISLATIVE SOLUTION SAID MERRILL'S MR SCHAEFER WHO HAS BEEN PART OF AN ACTIVE LOBBYING EFFORT TO GRANT ORDINARY TAX TREATMENT FOR A BROAD ARRAY OF HEDGES THE IRS HAS 90 DAYS TO APPEAL THE TAX COURT'S DECISION TO A FEDERAL CIRCUIT COURT WE ARE ANALYZING THE DECISION AN IRS SPOKESWOMAN SAID IT IS TOO EARLY FOR US TO COMMENT 9306210174 930621 APPLE PICKS SPINDLER AS CHIEF FOR ROUGH DAYS AHEAD BY G PASCAL ZACHARY AND KEN YAMADA STAFF REPORTERS OF THE WALL STREET JOURNAL APPLE COMPUTER INC'S NEW CHIEF EXECUTIVE OFFICER MICHAEL SPINDLER WAS NICKNAMED THE DIESEL WHEN HE PUSHED THE COMPANY'S EUROPEAN SALES TO NEW HEIGHTS DURING THE 1980S HE'LL NEED ALL OF THAT RELENTLESS SHOVE TO KEEP APPLE ON TRACK IN THE NEXT SEVERAL YEARS APPLE'S BOARD DISCLOSED FRIDAY THAT IT HAD ELECTED MR SPINDLER WHO HAD BEEN PRESIDENT TO SUCCEED JOHN SCULLEY AS CHIEF EXECUTIVE AT MR SCULLEY'S REQUEST MR SCULLEY WILL REMAIN CHAIRMAN BUT WILL DEVOTE MOST OF HIS TIME TO BUILDING ALLIANCES WITH OTHER COMPANIES WORKING OUT OF A NEW YORK OFFICE THE TRANSITION COMES AT A DIFFICULT TIME FOR APPLE ITS PROFITS ARE EXPECTED TO FALL AS MUCH AS 15 IN ITS CURRENT FISCAL YEAR AND AS MUCH AS 10 NEXT YEAR AS IT SLASHES PRICES TO MAINTAIN MARKET SHARE IN THE COMPETITIVE PERSONAL COMPUTER MARKET TO SURVIVE A LONGRUNNING INDUSTRY PRICE WAR ANALYSTS ESTIMATE MR SPINDLER WILL HAVE TO CUT APPLE'S ADMINISTRATIVE MARKETING AND RESEARCH AND DEVELOPMENT SPENDING BY ROUGHLY ONETHIRD TO ONEHALF ESTIMATES OF PENDING LAYOFFS RANGE FROM 5 TO 20 OF THE COMPANY'S 15000 EMPLOYEES I THINK THIS IS GOING TO BE A DIFFICULT SUMMER FOR APPLE SAID AC MIKE MARKULLA AN APPLE COFOUNDER AND DIRECTOR APPLE'S MAIN PROBLEM IS THAT ITS LINE OF MACINTOSH DESKTOP COMPUTERS WHILE KNOWN FOR THEIR ELEGANT DESIGN AND EASE OF USE IS NO LONGER GAINING MARKET SHARE DESPITE AGGRESSIVE PRICECUTTING APPLE'S SLICE OF THE PC MARKET IS STUCK SOMEWHERE AT ABOUT 12 ENOUGH TO MAKE IT THE WORLD'S SECONDLARGEST PC SUPPLIER BUT NOT ENOUGH TO SWING MOMENTUM AWAY FROM THE DOMINANT PC STANDARD BACKED BY MICROSOFT BUT THE PRICE WAR HAS BEEN UNRELENTING AND THE MACINTOSH MODELS ARE STILL MORE EXPENSIVE AND IN SOME CASES LESS POWERFUL THAN MACHINES BASED ON INTEL CORP'S MICROPROCESSORS AND MICROSOFT CORP'S WINDOWS OPERATING SYSTEM MOREOVER APPLE'S BIGGEST RECENT HIT THE POWERBOOK LINE OF PORTABLE COMPUTERS IS NOW ENCOUNTERING STIFFER COMPETITION FROM IMPROVED MODELS FROM COMPANIES SUCH AS INTERNATIONAL BUSINESS MACHINES CORP AND HEWLETTPACKARD CO ON JUNE 9 APPLE DISCLOSED THAT PROFIT FOR ITS SECOND HALF WILL BE LESS THAN A YEAR EARLIER AND FIVE DAYS LATER ANNOUNCED MORE PROFITSAPPING PRICE CUTS ITS STOCK WHICH FELL 25 CENTS TO 41 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY HAS PLUNGED 28 THIS MONTH FOR ABOUT TWO YEARS MR SCULLEY HAS BEEN PURSUING A TWOPRONGED STRATEGY TO BREAK APPLE OUT OF ITS NICHE IN THE PERSONAL COMPUTER BUSINESS APPLE IS TRYING TO MAKE ITS COMPUTER LINE MORE OF A STANDARD BY JOINING FORCES WITH IBM AND MOTOROLA INC TO PRODUCE MACHINES WITH A NEW OPERATING SYSTEM CALLED TALIGENT AND A MORE POWERFUL MICROPROCESSOR CALLED POWERPC MEANWHILE MR SCULLEY HAS TRIED TO GET AN EARLY LEAD IN TWO OTHER MAJOR MARKETS WIRELESS PERSONAL COMMUNICATORS AND MULTIMEDIA MACHINES AND SOFTWARE THAT PROCESS DATA SOUND AND VIDEO NOW MR SPINDLER HAS TO EXECUTE THIS STRATEGY WHILE SHARPLY CUTTING COSTS APPLE'S DIRECTORS AND MANY ANALYSTS THINK HE IS WELLSUITED TO THE TASK A 50YEAROLD GERMAN ENGINEER HE WAS NAMED CHIEF OPERATING OFFICER IN 1990 SINCE THEN MESSRS SPINDLER AND SCULLEY HAVE INCREASINGLY PLAYED THE ROLE OF MR INSIDE AND MR OUTSIDE RESPECTIVELY THE PUBLICITYSHY MR SPINDLER IS CONSIDERED A TOUGH HANDSON MANAGER WHO UNLIKE THE MORE ETHEREAL MR SCULLEY ENJOYS RIDING HERD ON OPERATIONS HE IS CREDITED WITH DIVERSIFYING APPLE'S PRODUCT LINE BROADENING SALES CHANNELS SHORTENING PRODUCT CYCLES AND EXPANDING MANUFACTURING CAPACITY WHILE MR SCULLEY SOMETIMES LOST INTEREST IN NITTYGRITTY MATTERS MR SPINDLER BRINGS A LOT MORE FOCUS ACTUALLY TO OPERATIONS SAID ARTHUR ROCK AN APPLE DIRECTOR AND WELLKNOWN VENTURE CAPITALIST MR SPINDLER IS LESS OF A PHILOSOPHER AND THOUGHT LEADER ACCORDING TO ANOTHER DIRECTOR AND VENTURE CAPITALIST BERNARD GOLDSTEIN BUT HE AND MANY OTHERS ARE IMPRESSED WITH HIS GRASP OF DETAIL WHEN YOU TALK TO HIM IT'S LIKE TALKING TO EINSTEIN ON SPEED SAID DOUG VAN DORSTEN AN ANALYST WITH LEHMAN BROTHERS YOU GET INFORMATION FROM THE GUY LIKE A FIRE HOSE ADDS ROGER HEINEN APPLE'S CHIEF SOFTWARE EXECUTIVE UNTIL HIS DEPARTURE EARLIER THIS YEAR SPINDLER IS LIKE CLARK KENT INSIDE APPLE HE'S THE SUPERMAN WHO NOBODY KNOWS ABOUT MR SPINDLER IS EXPECTED TO BENEFIT FROM REDUCED RESEARCH AND DEVELOPMENT SPENDING AS THE POWERPC LINE AND APPLE'S FIRST PERSONAL COMMUNICATOR THE NEWTON COME TO MARKET MOREOVER MR SCULLEY INTENDS TO FIND PARTNERS TO HELP FUND FUTURE DEVELOPMENT COSTS SUCH AS IBM WHICH IS HELPING FINANCE A JOINT MULTIMEDIA SOFTWARE VENTURE WITH APPLE CALLED KALEIDA INDIVIDUALS CLOSE TO AMERICAN TELEPHONE & TELEGRAPH CO SAY THAT AT&T IS DISCUSSING JOINT DEVELOPMENT OF PRODUCTS IN THE MULTIMEDIA ARENA BUT MR SPINDLER STILL FACES A DAUNTING CHALLENGE BECAUSE OF MR SCULLEY'S MIXED LEGACY WHILE MR SCULLEY GETS HIGH MARKS FOR STEERING APPLE PROFITABLY THROUGH THE PRICE WARS OF THE PAST THREE YEARS WHILE COMPANIES LIKE COMPAQ AND IBM CHALKED UP BIG LOSSES HE HASN'T WRUNG ENOUGH NEW PRODUCTS FROM A BLOATED RESEARCH AND DEVELOPMENT BUDGET AND MISSED A HUGE OPPORTUNITY TO BREAK APPLE OUT OF ITS NICHE IN THE LATE 1980S CRITICS ASSERT THEY SAY HE SHOULD HAVE AGGRESSIVELY LICENSED THE MACINTOSH OPERATING SYSTEM TO OTHER COMPUTER MAKERS ESTABLISHING IT AS A RIVAL STANDARD TO MICROSOFT'S AND CUT PRICES SOONER SUCH A STRATEGY COULD HAVE MADE APPLE BOTH A SOFTWARE GIANT AND A BIGGER PLAYER IN PERSONAL COMPUTERS MR SCULLEY IS NOW A CONVERT TO THAT KIND OF THINKING WHICH IS WHY HE JOINED UP WITH IBM AND MOTOROLA HE ALSO SPUN OFF A PROMISING COMMUNICATIONS TECHNOLOGY TELESCRIPT TO A CONSORTIUM GENERAL MAGIC INC IN HOPES OF ESTABLISHING IT AS A STANDARD IN AN INTERVIEW IN FEBRUARY HE SAID HE WOULD RATHER COMPETE ON AN EQUAL FOOTING IN A LARGE HIGHGROWTH INDUSTRY THAN SEE WHAT HAPPENED IN THE 1980S WHEN WE WERE LARGELY A NICHE COMPANY WITH BETTER TECHNOLOGY BUT THE CONVERSION MAY BE TOO LATE FOR APPLE AND MR SPINDLER AT LEAST IN TERMS OF GAINING A HIGHLY PROFITABLE LEAD IN KEY MARKETS MICROSOFT IS EVERYWHERE TRYING TO THWART MR SCULLEY'S AMBITIONS ITS OPERATING SYSTEMS OUTSELL THE MAC 8TO1 AND IT IS FORGING ALLIANCES OF ITS OWN TO PROVIDE THE OPERATING SOFTWARE FOR SMART TELEPHONES MULTIMEDIA MACHINES SUCH AS DIGITAL TELEVISION OFFICE EQUIPMENT AND MORE POWERFUL COMPUTERS AT&T AND AN AFFILIATE EO ALREADY HAVE A PERSONAL COMMUNICATOR IN THE MARKET AND ARE PLANNING A SECONDGENERATION MODEL WHILE APPLE IS STILL DEVELOPING THE NEWTON ALREADY SIX MONTHS LATE PEOPLE CLOSE TO APPLE SAY THE NEWTON HAS BEEN GETTING MIXED REVIEWS FROM FOCUS GROUPS MR SCULLEY OF COURSE BELIEVES IT ISN'T TOO LATE TO GRAB A LION'S SHARE OF WIRELESS AND MULTIMEDIA MARKETS IT WOULD BE CRAZY FOR APPLE TO WALK AWAY FROM SUCH EXCITING OPPORTUNITIES HE SAID IN AN INTERVIEW FRIDAY HIS COMMITMENT TO NEW ALLIANCES IS THE MAIN REASON HE CITES FOR RECOMMENDING MR SPINDLER AS CHIEF EXECUTIVE OFFICER WHILE HE CONCENTRATES ON BUILDING ALLIANCES THESE KINDS OF RELATIONSHIPS HAVE TO BE AT A HIGH LEVEL AND ARE VERY TIMECONSUMING MR SCULLEY SAID WHILE APPLE'S DIRECTORS EMPHATICALLY SAY MR SPINDLER'S PROMOTION WAS MR SCULLEY'S IDEA THEY WERE PROBABLY AS READY FOR THE MOVE AS HE WAS MR SCULLEY HAS SPENT LESS AND LESS TIME ON OPERATIONAL DETAILS NOT JUST TO CRAFT NEW DEALS BUT ALSO TO SUPPORT BILL CLINTON'S CAMPAIGN HE SAT NEXT TO HILLARY RODHAM CLINTON DURING THE STATE OF THE UNION ADDRESS BY LIVING ON THE EAST COAST HE CAN STAY INVOLVED IN NATIONAL POLITICS BUT HE RULES OUT ANY DIRECT ROLE IN GOVERNMENT I'VE MADE IT VERY CLEAR THAT THAT'S NOT WHAT I WANT HE SAID IN A RECENT INTERVIEW I THINK I CAN BE MORE HELPFUL TO EVERYBODY APPLE THE COUNTRY IN THE PRIVATE SECTOR THAT'S WHAT I UNDERSTAND AND THAT'S WHERE I'D LIKE TO BE 9306210173 930621 BUSINESS BRIEF HANWA CO JAPANESE TRADING FIRM POSTS 63 INCREASE IN PRETAX PROFIT HANWA CO A JAPANESE TRADING FIRM SPECIALIZING IN STEEL PRODUCTS REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT ROSE 63 TO 3103 BILLION YEN 2892 MILLION IN THE FISCAL YEAR ENDED MARCH 31 FROM A YEAR EARLIER NET PROFIT CLIMBED 1 TO 603 BILLION YEN BUT SALES FELL 11 TO 63936 BILLION YEN THE PRETAX PROFIT SURGE CAME ON THE BACK OF INCREASES IN BOTH INTEREST INCOME AND DIVIDEND INCOME DESPITE FALLING INTEREST RATES AND A SLUGGISH DOMESTIC STOCK MARKET HANWA IS NOTED FOR ITS AGGRESSIVE DEALINGS IN FINANCIAL MARKETS THE CONSOLIDATED FINANCIAL STATEMENT COVERS HANWA AND THREE CONSOLIDATED SUBSIDIARIES 9306210172 930621 CHINA'S INDUSTRIES FEEL CREDIT CRUNCH PROPERTY BOOM LEAVES BANKS SAPPED BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHINA'S OVEREXTENDED BANKS ARE PUTTING THE SQUEEZE ON STATEOWNED INDUSTRIES A SIGN THAT THE COUNTRY'S ECONOMIC BOOM IS ENDING AFTER LENDING HEAVILY IN THE PAST YEAR TO THE HIGHFLYING PROPERTY MARKETS ALONG CHINA'S COAST MANY BANKS NOW FIND THEMSELVES WITH LITTLE TO LEND TO FACTORIES EVEN FOR WORKING CAPITAL LET ALONE FOR EXPANSION THUS MANY FACTORIES CANNOT PAY THEIR SUPPLIERS SOME HAVE SUSPENDED PRODUCTION AND OTHERS HAVE DELAYED OR SCUTTLED INVESTMENT PLANS FEELING THE PINCH IS ZHANJIANG ELECTRONICS INDUSTRIAL CORP A STATEOWNED FACTORY IN THE SOUTHERN PORT CITY OF ZHANJIANG AND A MARKET LEADER IN CAPACITORS TAO WEIQUAN THE FACTORY'S MANAGER WANTED TO TRIPLE PRODUCTION OF CAPACITORS A COMPONENT OF MANY ELECTRONIC PRODUCTS ARMED WITH A SUCCESSFUL PRODUCT AND THE BACKING OF THE MUNICIPAL GOVERNMENT HE THOUGHT THAT SECURING A 17 MILLION YUAN 3 MILLION LOAN WOULD BE NO TROUBLE AT ALL HE WAS WRONG THE FACTORY'S BANK ZHANJIANG INDUSTRIAL & COMMERCIAL BANK OF CHINA HAS REFUSED REPEATED PLEAS FOR FUNDS MR TAO IS IN HONG KONG TO LINE UP FOREIGN INVESTORS FOR THE EXPANSION THE CREDIT SQUEEZE FOLLOWS AN INVESTMENT FRENZY INVESTMENT IN PROPERTY AND OTHER FIXED ASSETS WHICH GREW NEARLY 70 IN THE FIRST FOUR MONTHS OF THIS YEAR AND IMPORTS UP 25 ARE WIDELY EXPECTED TO SLOW IN THE SECOND HALF OF THE YEAR BUT WHETHER BEIJING'S ECONOMIC MANAGERS CAN COOL THE ECONOMY WITHOUT SENDING IT INTO A DEEP FREEZE IS AN OPEN QUESTION WITH ANNUAL INFLATION AT NEARLY 17 IN MAJOR CITIES AND INTEREST RATES ON BANK DEPOSITS AT ABOUT HALF THAT LEVEL PEOPLE ARE WITHDRAWING THEIR MONEY FROM BANKS TO BUY CONSUMER DURABLES AND JEWELRY TO HEDGE AGAINST INFLATION AFTER AVERAGE MONTHLY GROWTH OF 20 BILLION YUAN IN 1992 TOTAL BANK DEPOSITS ACTUALLY FELL BY 45 BILLION YUAN IN MARCH AND GREW BY ONLY ONE BILLION YUAN IN APRIL WITH A LARGE PART OF THEIR FUNDS TIED UP IN THE PROPERTY BUSINESS MANY BANKS ARE SCRAMBLING TO SCALE BACK LENDING TO THE INDUSTRIAL SECTOR SO THAT THEY CAN MEET CUSTOMER WITHDRAWALS AND MAKE CASH PAYMENTS FOR FARMERS' CROPS ON THURSDAY THE PROBEIJING WEN WEI PAO NEWSPAPER IN HONG KONG REPORTED THAT THE STATE COUNCIL CHINA'S HIGHEST ADMINISTRATIVE BODY ISSUED A SERIES OF CIRCULARS TO LOCAL AUTHORITIES TO PROTECT LOANS TO SUCH PRIORITY SECTORS AS AGRICULTURE AND RAILWAYS BUT TO CURB LENDING FOR PROPERTY DEVELOPMENT THE VARYING IMPACT OF THE SQUEEZE ACROSS CHINA REFLECTS THE COUNTRY'S REGIONAL DISPARITIES ENTERPRISES IN GUANGDONG PROVINCE AND SHANGHAI FOR INSTANCE ARE GENERALLY MORE LIQUID THAN THEIR COUNTERPARTS ELSEWHERE BECAUSE OF THEIR ACCESS TO THE BLACK MARKET OF FUNDS FLOWING IN FROM OTHER PARTS OF THE COUNTRY ENTERPRISE OFFICIALS IN POORER PROVINCES SAY IT IS THE FLOW OF MONEY INTO THE COUNTRY'S ECONOMICALLY VIBRANT COASTAL REGIONS THAT HAS LEFT THEM BEREFT OF FUNDS HUNAN PROVINCE IS AMONG THE HARDEST HIT ACCORDING TO A REPORT PREPARED BY A BEIJINGBASED RESEARCH INSTITUTE ABOUT 20 BILLION YUAN IN HUNAN BANK AND ENTERPRISE FUNDS HAS BEEN CHANNELED INTO PROPERTY INVESTMENTS IN ADJACENT GUANGDONG AN ESTIMATED 20 TO 30 OF THE PROVINCE'S ENTERPRISES ARE CLOSED OR OPERATING BELOW CAPACITY FOR LACK OF FUNDS THE REPORT ADDS CHINA'S MONEYLOSING STATE FACTORIES WHICH MAKE UP A THIRD OF THE STATE SECTOR HAVE BEEN AMONG THE FIRST TO FEEL THE SCREWS TIGHTEN BANKS' CUSTOM OF CARRYING THESE ENTERPRISES' DOUBTFUL DEBTS HAS CONTRIBUTED TO CURRENT ILLIQUIDITY IN THE BANKING SYSTEM BUT NOW THE SHORTAGE OF FUNDS IS SO SEVERE THAT BANKS ARE RELUCTANT TO SINK MORE MONEY INTO WHAT THEY SEE AS A BOTTOMLESS PIT INCREASING NUMBERS OF STATE ENTERPRISES ARE HAVING TROUBLE SETTLING THEIR SOCALLED TRIANGULAR DEBTS OR DEBTS OWED TO EACH OTHER A MAJOR SUCH DEBTOR IS THE 175 BILLION BEIJINGKOWLOON RAIL PROJECT THE NORTHSOUTH TRUNK LINE SCHEDULED FOR COMPLETION IN 1995 WOULD RELIEVE CHRONIC BOTTLENECKS ON THE EXISTING RAIL LINK AN OFFICIAL CLOSE TO THE MINISTRY OF RAILWAYS SAYS CHINA'S CAPITAL INVESTMENT BOOM HAS JACKED UP STEEL PRICES WHICH IN TURN HAS CAUSED CONSTRUCTION COSTS OF THE RAIL LINK TO DOUBLE IN RECENT MONTHS UNABLE TO OBTAIN MORE FINANCING THE PROJECT'S BACKERS THE MINISTRY AND SEVERAL PROVINCES ALONG THE LINE HAVE DEFAULTED ON SOME PAYMENTS TO SUPPLIERS THE OFFICIAL SAYS THE LAST TIME BEIJING BRAKED CREDIT EXPANSION IN LATE 1988 IT DID SO WITH SUCH FORCE THAT PROJECTS WERE SCALED BACK INDISCRIMINATELY PRODUCTION SLID AND MOUNTING TRIANGULAR DEBTS IMMOBILIZED MUCH OF THE CORPORATE SECTOR BEIJING OFFICIALS SAY THAT THIS TIME AROUND THEY WILL PRIORITIZE PROJECTS PROTECTING THOSE THAT ARE CRITICAL TO THE COUNTRY'S DEVELOPMENT FURTHER TIGHTENING WILL ONLY PUT MANY MORE FACTORIES OUT OF BUSINESS MAJOR INFRASTRUCTURE PROJECTS WILL BE LEFT UNCOMPLETED WASTING PRECIOUS RESOURCES SAYS LI YINING AN ECONOMICS PROFESSOR AT BEIJING UNIVERSITY WE DON'T WANT TO ENDURE ANOTHER BUST 9306210171 930621 BUSINESS BRIEF GENERAL MOTORS CORP PINKERTON'S AGREES TO BUY COMPANY'S SECURITY BUSINESS PINKERTON'S INC SAID IT SIGNED AN AGREEMENT TO ACQUIRE GENERAL MOTORS CORP'S INTERNAL UNIFORMED SECURITY OPERATIONS BUSINESS AND ASSETS AT THE SAME TIME PINKERTON'S SAID IT SIGNED A SIXYEAR SERVICE AGREEMENT TO PROVIDE SECURITY TO GM LOCATIONS AROUND THE US BEGINNING JULY 26 EXACT TERMS OF THE ACQUISITION HAVEN'T BEEN SET BUT THE CASH PORTION OF THE DEAL IS EXPECTED TO BE ABOUT 10 MILLION PINKERTON'S ESTIMATED PINKERTON'S BASED IN VAN NUYS CALIF SAID REVENUE UNDER THE SECURITY SERVICES AGREEMENT WILL BE ABOUT 70 MILLION IN THE FIRST YEAR OF THE DEAL IT SAID GM'S ROUGHLY 2000 SALARIED SECURITY EMPLOYEES WILL BE OFFERED JOBS AT PINKERTON'S PINKERTON'S ALREADY PROVIDES SECURITY SERVICES AT A FEW GM SITES RICHARD F O'BRIEN GM VICE PRESIDENT OF CORPORATE PERSONNEL SAID THAT WHILE SELLING OUR SECURITY OPERATIONS WAS A DIFFICULT DECISION TO MAKE IT WAS CONSISTENT WITH GM'S STATED OBJECTIVE TO FOCUS ON CORE BUSINESSES 9306210170 930621 BUSINESS BRIEF DAIICHI PHARMACEUTICAL CO DRUG MAKER SAYS PRETAX NET CLIMBED 5 IN FISCAL YEAR DAIICHI PHARMACEUTICAL CO A JAPANESE MAKER OF ETHICAL DRUGS SAID ITS CONSOLIDATED PRETAX PROFIT ROSE 5 TO 4209 BILLION YEN 3923 MILLION IN THE FISCAL YEAR ENDED MARCH 31 FROM A YEAR EARLIER NET PROFIT ROSE 3 TO 1760 BILLION YEN SALES CLIMBED 79 TO 23973 BILLION DAIICHI SAID THAT ITS BUSINESS ENVIRONMENT WAS SEVERE WITH THE DOMESTIC ECONOMY COOLING FURTHER AND GOVERNMENTMANDATED INDUSTRY REFORMS KICKING DRUG PRICES AN AVERAGE 81 LOWER AS WELL AS REWORKING THE DISTRIBUTION SYSTEM THE COMPANY SAID ITS MAINSTAY ETHICAL PHARMACEUTICALS REMAINED THE ENGINE OF GROWTH DURING THE PAST FISCAL YEAR 9306210169 930621 NEW ANTITRUST LAW EXPECTED TO INCREASE PRODUCTION VENTURES WASHINGTON A NEW LAW REDUCING THE ANTITRUST EXPOSURE OF HIGHTECHNOLOGY JOINT PRODUCTION VENTURES WON'T BRING AN OVERNIGHT BOOM IN SUCH UNDERTAKINGS BUT IT SHOULD ENCOURAGE THEM OVER TIME ACCORDING TO WILLIAM MORIN DIRECTOR OF TECHNICAL POLICY FOR THE NATIONAL ASSOCIATION OF MANUFACTURERS THE LAW WHICH PRESIDENT CLINTON SIGNED LAST WEEK PROVIDES THAT PRODUCTION VENTURES CAN'T BE HELD LIABLE FOR TREBLE DAMAGES IF THEY ARE FOUND TO HAVE ENGAGED IN ANTICOMPETITIVE BEHAVIOR PREVIOUSLY MR MORIN SAID THE IDEA OF LAUNCHING SUCH COOPERATIVE EFFORTS WOULD HAVE BEEN REJECTED OUT OF HAND OUT OF FEAR OF ANTITRUST CONCERNS AND TREBLE DAMAGES THE NEW LAW MOVES THE ANTITRUST LAW INTO THE 20TH CENTURY MR MORIN SAID RATHER THAN DECIDING AUTOMATICALLY THAT JOINT PRODUCTION VENTURES ARE ILLEGAL COURTS WILL BE ABLE TO TAKE INTO ACCOUNT THE COMPETITIVE CLIMATE FOR INSTANCE BY RECOGNIZING THAT THE RELEVANT MARKETPLACE TODAY OFTEN IS THE GLOBAL ECONOMY NOT JUST THE US MARKET THE PRIMARY POINT OF PRODUCTION MUST BE IN THE US IN ORDER FOR THE VENTURE TO BE COVERED BY THE NEW LAW WHILE JOINT PRODUCTION VENTURES DO RECEIVE SOME RELIEF FROM CIVIL ANTITRUST PENALTIES THERE IS NOTHING IN THE LAW THAT WOULD PREVENT AUTHORITIES FROM HALTING ANY COLLUSION THAT RUNS AFOUL OF EXISTING ANTITRUST LAWS JOINT VENTURES IN RESEARCH AND DEVELOPMENT ALREADY ARE PERMITTED AND BEFORE ENACTMENT OF THE NEW LAW JOINT PRODUCTION VENTURES COULD BE LAWFULLY CONSTRUCTED AS GENERAL MOTORS CORP AND TOYOTA MOTOR CORP HAVE DONE HE SAID BUT ONLY WITH MASSIVE LEGAL EXPENSES BEFOREHAND WHEN HE SIGNED THE LAW LAST WEEK PRESIDENT CLINTON SAID IT WILL ENABLE AMERICAN COMPANIES LARGE AND SMALL TO POOL THEIR RESOURCES TO COMPETE AND WIN IN THE INTERNATIONAL MARKETPLACE HE ADDED THAT THE COOPERATIVE ARRANGEMENTS ENVISIONED BY THIS LEGISLATION WILL BECOME INCREASINGLY NECESSARY AS THE COSTS AND SKILLS REQUIRED TO DEVELOP AND MANUFACTURE NEW PRODUCTS EXCEED THE RESOURCES OF ANY SINGLE COMPANY 9306210168 930621 MARKETING & MEDIA PEPSI LAUNCHES ADS AIMED AT QUIETING BIG TAMPERING SCARE SOMERS NY AFTER A WAVE OF PRODUCTTAMPERING REPORTS LAST WEEK PEPSICO INC IS FIRING BACK WITH ITS WEAPON OF CHOICE ADVERTISING THE COMPANY'S BEVERAGE DIVISION DEVELOPED A NEWSPAPER ADVERTISEMENT AIMED AT PUTTING TO REST THE FUROR SURROUNDING DOZENS OF REPORTS FROM PEOPLE WHO CLAIMED THEY FOUND SYRINGES AND OTHER OBJECTS IN CANS OF SOFT DRINKS MOSTLY DIET PEPSI THE AD IS EXPECTED TO BEGIN RUNNING IN ABOUT 200 NEWSPAPERS NATIONWIDE TODAY SEVERAL PEOPLE WERE ARRESTED AROUND THE COUNTRY OVER THE PAST FEW DAYS ON FEDERAL CHARGES OF FILING FALSE TAMPERING CLAIMS AND THE FOOD AND DRUG ADMINISTRATION WHICH IS CONTINUING TO INVESTIGATE THE REMAINING REPORTS HAS SAID IT HAS FOUND NO EVIDENCE YET OF NATIONWIDE SOFTDRINK TAMPERING AS AMERICA NOW KNOWS THE NEW PEPSI AD SAYS THOSE STORIES ABOUT DIET PEPSI WERE A HOAX PLAIN AND SIMPLE NOT TRUE HUNDREDS OF INVESTIGATORS HAVE FOUND NO EVIDENCE TO SUPPORT A SINGLE CASE THE AD ALSO SAYS THAT PEPSI HAS SET UP SPECIAL OFFERS SO YOU CAN ENJOY OUR GREAT QUALITY PRODUCTS AT PRICES THAT WILL SAVE YOU MONEY ALL SUMMER LONG PEPSI SAID IT IS STILL TOO EARLY TO TELL WHETHER THE SCARE AFFECTED SALES NATIONALLY BUT CITING INDEPENDENT RESEARCH ON 450 STORES IN SOUTHERN CALIFORNIA THE COMPANY SAID DIET PEPSI SHOWED NO SALES DECLINE DURING THE TWO WEEKS ENDED JUNE 16 THE FIRST PEPSI TAMPERING CLAIM WAS REPORTED IN WASHINGTON STATE JUNE 9 9306210167 930621 BUSINESS BRIEF LUCKY GOLDSTAR CABLE CORP SOUTH KOREAN FIRM VIETNAM PLAN FIBER OPTIC VENTURE SOUTH KOREA'S LUCKY GOLDSTAR CABLE CORP WILL MAKE HIGHQUALITY FIBER OPTIC CABLE FOR EXPORT IN A JOINT VENTURE WITH VIETNAM VIETNAMESE NEWSPAPER AND RADIO REPORTS SAID THE CONTRACT IS THE FIRST BETWEEN THE TWO COUNTRIES SINCE AN OFFICIAL VISIT TO SOUTH KOREA BY VIETNAMESE PRIME MINISTER VO VAN KIET IN MAY THE HANOI MOI NEWSPAPER SAID THE DEAL ALSO MARKS VIETNAM'S FIRST FORAY INTO FIBER OPTICS PRODUCTION THE OFFICIAL VOICE OF VIETNAM RADIO REPORTED OWNERSHIP OF THE 8 MILLION PROJECT WILL BE SHARED EVENLY BETWEEN LUCKY GOLDSTAR AND VIETNAM THE REPORTS SAID THE NEW FACTORY WILL BE IN THE HANOI SUBURB OF GIA LIM AND PRODUCTION IS TO START NEXT YEAR A LUCKY GOLDSTAR OFFICIAL DECLINED TO GIVE FURTHER DETAILS ON THE CONTRACT NOTING THAT IT WILL COME INTO FORCE ONLY AFTER IT RECEIVES APPROVAL FROM THE SOUTH KOREAN GOVERNMENT 9306210166 930621 MR COFFEE FRIENDS RECENTLY DEPARTED IS NOW MR LONELY MESSRS GASKET ROOTER AND BULB DISAPPEAR FROM WALL STREET AS CONCERNS CHANGE NAMES BY DAVE PETTIT SPECIAL TO THE WALL STREET JOURNAL AND MR ROOTER AND MR BULB DURING THE PAST TWO MONTHS ALL THREE HAVE QUIETLY DISAPPEARED FROM WALL STREET AS THE THREE COMPANIES QUITE BY COINCIDENCE CHOSE THE SAME TIME TO CHANGE THEIR NAMES SHEDDING THE MR FROM THEIR MONIKERS SO MR GASKET BECOMES PERFORMANCE INDUSTRIES INC MR ROOTER IS NOW DWYER GROUP AND MR BULB IS KNOWN AS ENCON SYSTEMS INC THE DEPARTURE OF MESSRS GASKET ROOTER AND BULB LEAVES MR COFFEE INC VIRTUALLY THE ONLY PUBLICLY HELD COMPANY USING A COURTESY TITLE IN ITS NAME THOUGH THERE ARE STILL MANY MOM AND POP SHOPS CALLED MR THIS OR THAT WHY THE RUN FROM THE MR MONIKER WE FINALLY SAW THE LIGHT SAYS ADRIEN HEBERT CHIEF FINANCIAL OFFICER OF THE FORMER MR BULB BASED IN BOSTON ACTUALLY EACH OF THE COMPANIES CHANGED THEIR IDENTITIES IN RESPONSE TO MERGERS AND ACQUISITIONS OR JUST TO MAKE THEIR NAMES MORE REPRESENTATIVE OF THEIR BUSINESSES MR BULB FOR INSTANCE CHANGED ITS FOCUS FROM SIMPLY PROVIDING LIGHTING SERVICES TO HELPING BUSINESSES BE MORE ENVIRONMENTALLY CONSCIOUS IN THEIR LIGHTING USE ENCON IS SHORT FOR ENERGY CONSERVATION MR HEBERT SAYS THE USE OF MR IN A COMPANY NAME IS A RELIC OF THE 1960S SAYS FRANK DELANO CHAIRMAN OF A NEW YORK CONSULTANCY THAT HELPS COMPANIES NAME THEMSELVES OR THEIR PRODUCTS MISTER BECAME AN ADJECTIVE ALMOST TO MEAN THE PINNACLE THE BEST HE SAYS EDMUND FOCHTMAN PRESIDENT OF THE FORMER MR GASKET TEMPE ARIZ CLAIMS THE COMPANY FOUNDED AND NAMED BY FORMER RACE CAR DRIVER JOE HRUDKA WAS PROBABLY ONE OF THE ORIGINAL MR' COMPANIES THE AUTO PRODUCTS MAKER FORMED IN 1964 RECENTLY SOLD ITS MR GASKET PRODUCT LINE TO ECHLIN INC OF BRANFORD CONN FORCING ITS NAME CHANGE BUT MR DELANO THE NEW YORK CONSULTANT SAYS HE WOULDN'T HAVE WAITED FOR AN ACQUISITION TO FORCE THE NEW IDENTITY THE MISTER REFERENCE HAS RUN ITS COURSE AND IS LONG DEAD ANYONE TODAY HAS TO REALIZE THAT WOMEN NOW REPRESENT MORE THAN 50 OF BUYING DOLLARS FOR PRODUCTS AND SERVICES TO LABEL ANYTHING TODAY MISTER IS REALLY JUST CUTTING WOMEN OUT OF THE PICTURE HE SAYS NOT SO COUNTERS ROBERT TUNMIRE PRESIDENT OF DWYER GROUP'S MR ROOTER UNIT ONE OF FOUR MAJOR BUSINESSES RUN BY THE WACO TEXAS COMPANY THE SEWER CLEANING UNIT WHICH CALLS ROTOROOTER ITS NO 1 RIVAL WILL NOT ONLY KEEP THE MR ROOTER NAME BUT STANDS BY ITS LOGO MAN MR WINKIE CLEAN CUT AND CHERUBFACED MR WINKIE WORKS AS QUICK AS A WINK MR TUNMIRE SAYS MR COFFEE ALSO STANDS FIRM OUR BRAND NAME IS ONE OF OUR BEST ASSETS AND WE HAVE NO INTENTION OF CHANGING IT SAYS RICHARD ADAMANY CHIEF FINANCIAL OFFICER 9306210165 930621 LEISURE & ARTS THEATER VOICES FROM THE LA RIOTS BY JOE MORGENSTERN MS SMITH'S METHOD WOULD SEEM ESPECIALLY APPROPRIATE TO THIS BEFUDDLED CITY NO ONE ELSE HAS MANAGED TO CLARIFY LET ALONE DRAMATIZE THE SEISMIC EVENTS THAT FOLLOWED THE ACQUITTAL OF RODNEY KING'S TORMENTORS NOT THE TRADITIONAL THEATER WHICH HAS LOST MOST OF ITS PLAYWRIGHTS AND ITS AUDIENCE TO THE MOVIES AND TV NOT THE BOZOS AND BOZETTES OF LOCAL TV NEWS DISPENSING BRAINLESS PLEASANTRIES BETWEEN STORIES ABOUT MURDEROUS CHILDREN IN THE GHETTOS AND LUNATIC DRIVERS ON THE FREEWAYS NOT THE LOCAL PRINT PRESS WITH ITS BULKY CARGO OF SPOT NEWS AND TURGID FEATURES AND SURELY NOT THE POLITICIANS WHO AMPLY DISGRACED BY THEIR FAILURE TO REBUILD BURNEDOUT NEIGHBORHOODS RECENTLY RAN A MAYORAL CAMPAIGN OF SURPASSING SQUALOR ALL THE MORE REASON THEN TO HOPE THAT ONE RESOURCEFUL ARTIST AND A BLACK ARTIST IN THE BARGAIN MIGHT SUCCEED BY SERVING SIMPLY AS A MEDIUM A SELFLESS INSTRUMENT THROUGH WHOM THE AUTHENTIC VOICES OF LOS ANGELES WOULD FINALLY BE HEARD IN FACT A FEW CHARACTERS IN MS SMITH'S GALLERY COME THROUGH LOUD AND CLEAR A CASHIER RECOUNTS IN HORRIFYING DETAIL HOW HER FETUS STOPPED A BULLET WITH ITS ELBOW A JUROR IN THE SECOND TRIAL OF THE RODNEY KING COPS LIKENS THE JURY PROCEEDINGS TO A MEETING OF ALCOHOLICS ANONYMOUS A BOOKKEEPER THEORIZES THAT THE ONLY REASON THEY HIT PEP BOYS IS BECAUSE PEP BOYS IS TOO HIGH YET SOMETHING SEEMS ASKEW FROM THE VERY START WHEN MS SMITH PLAYING A LATINO SCULPTOR AND PAINTER NAMED RUDY SALAS SR SLOUCHES STUDIEDLY BEHIND A TABLE AND RAPS THE TABLETOP WITH HER KNUCKLES TO EMPHASIZE HER POINTS MORE KNUCKLE WORK ENSUES BUT ALL WE GET FROM THE CHARACTER ARE A FEW FAMILIAR LAUGH LINES BY WAY OF DENYING THAT HE'S A RACIST RUDY SAYS I HAVE WHITE FRIENDS BUT I DON'T SEE THEM AS WHITE SOON SHE IS POSTURING AGAIN IN THE PERSON OF SGT CHARLES DUKE A LOS ANGELES POLICEMAN WHO TESTIFIED FOR THE DEFENSE IN BOTH RODNEY KING TRIALS AS AN EXPERT ON THE USE OF FORCE HER BODY LANGUAGE IS SO LOUD LOOK HOW ARROGANT I AM SHE PROCLAIMS WITH EVERY TILT OF HER TORSO EVERY THRUST OF HER CHIN THAT IT THREATENS TO DROWN OUT THE CHILLING SUBTLETIES OF SGT DUKE'S WORDS ABOUT WHY COPS CHOOSE TO BEAT UNARMED CITIZENS WITH BATONS THEY'RE ANGRY HE SUGGESTS BECAUSE THE CITY WON'T LET THEM USE CHOKE HOLDS SUCH COARSEGRAINED VIGNETTES MIGHT BE EASIER TO SWALLOW IF THE CONTENT WERE CONSISTENTLY RICH BUT FOR ALL OF MS SMITH'S ENTERPRISE AND LINGUISTIC GIFTS BRIEF PASSAGES ARE PERFORMED IN SPANISH AND KOREAN SHE IS NO GREAT SHAKES AS A REPORTER WHAT SHE BRINGS BACK FROM HER INTERVIEWS WITH FORMER POLICE CHIEF DARYL GATES AND FORMER POLICE COMMISSION PRESIDENT STANLEY SHEINBAUM IS MILDLY AMUSING BUT BANAL WHILE MANY OF HER CONVERSATIONS WITH ORDINARY ANGELENOS WHITES BLACKS ANGRY GANGBANGERS AGGRIEVED KOREANS YIELD SENTIMENTS ALREADY EXPRESSED BY SUCH PEOPLE IN THEIR OWN VOICES ON LOCAL TALK SHOWS TO BE FAIR MS SMITH CLAIMS NO JOURNALISTIC EXPERTISE SHE HASN'T BEEN TRAINED THAT WAY SHE SAYS IN HER PREFACE TO THE TV VERSION OF FIRES IN THE MIRROR SHE'S AN ACTRESS AND A PLAYWRIGHT IN THAT CASE THOUGH HER WORK MUST STAND OR FALL ON THE STRENGTH OF ITS DRAMA WHICH IS ALWAYS HARD TO COME BY IN ONEPERSON SHOWS AND ON HER ACTING WHICH OFTEN EVOKES THE SATURDAY NIGHT LIVE SCHOOL OF SELFCONGRATULATORY CARICATURE THUS SHE IGNORES THE INTELLIGENCE LURKING BEHIND MR SHEINBAUM'S DENSE NEW YORK ACCENT AND CONCENTRATES ON AN AMATEURISH VERSION OF THE ACCENT ALONE ALTHOUGH MS SMITH WAS HAILED IN THE LOS ANGELES TIMES'S REVIEW AS THE CONTEMPORARY STAGE'S MOST TRANSFIXING CHANNELER SHE MANGLES ONE SPEECH PATTERN AFTER ANOTHER SHE PLAYS MR GATES WITH A WINK AND A NOD ENTIRELY MISSING THE ESSENCE OF HIS WILY NARCISSISM IMPERSONATING REGINALD DENNY THE TRUCK DRIVER WHO WAS ALMOST BEATEN TO DEATH AS TVNEWS HELICOPTERS HOVERED SHE GOES FOR LAUGHS ONCE AGAIN DENNY RECALLS WAKING UP IN THE HOSPITAL TO FIND VISITORS LIKE JESSE JACKSON AND ARSENIO HALL AND BEGINNING TO THINK SOMETHING BIG WAS AFOOT ANY ANGELENO WHO'S BEEN WATCHING TV DURING THE PAST FEW MONTHS HAS COME TO KNOW MR DENNY AS A SINGULARLY DECENT LARGESPIRITED MAN YET MS SMITH WHO LIVES IN THE BAY AREA REDUCES HIM TO A SIMPLETON BLISSED OUT ON PAINKILLERS THE SHALLOWNESS OF SUCH CAMEOS IS A PUZZLEMENT AS WELL AS AN IRRITANT BECAUSE MS SMITH HAS DONE MUCH BETTER IN HER SHOW ABOUT CROWN HEIGHTS SHE VISITED DEEPLY FELT FURY ON BLACKS AND HASIDS ALIKE FOR THEIR REFUSAL TO ACKNOWLEDGE EACH OTHER'S HUMANITY WHEN SHE PLAYED THE WEST INDIAN FATHER OF GAVIN CATO THE SEVENYEAROLD BLACK CHILD KILLED BY A HASIDIC MAN'S CAR SHE PUSHED PAST HER PROBLEMS WITH THE ACCENT TO FIND THE GRAVE SWEET SOLID CENTER OF HER CHARACTER'S LIFE YET THE EVENTS OF CROWN HEIGHTS FOLLOWED A CLASSIC DRAMATIC FORM TWO CAMPS OF CLEARLY DEFINED ANTAGONISTS WHILE THE ROOTS OF THE LOS ANGELES RIOTS ARE AS DIVERSE AND DIFFUSE AS THE CITY ITSELF MS SMITH HAS HONORED THE DIVERSITY IN HER CURRENT SHOW WHICH IS NOTHING IF NOT MULTICULTURAL MULTIRACIAL AND MULTILINGUAL BUT THE DIFFUSENESS HAS DONE HER IN WHEN VOICES COME FROM TOO MANY DIRECTIONS AT ONCE A MEDIUM NEEDS A BETTER METHOD TO SORT THEM OUT MR MORGENSTERN IS A JOURNALIST AND SCREENWRITER IN LOS ANGELES 9306210164 930621 MAIN DEALERS IN TREASURYS FACE INQUIRY US WILL SEE IF FIRMS COLLUDED WITH PSA TO ALTER BIDDING RULE BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION IS INVESTIGATING WHETHER SOME LARGE GOVERNMENTBOND DEALERS COLLUDED WITH AN INDUSTRY TRADE ASSOCIATION TO FORCE A TECHNICAL RULE CHANGE FOR TRADING US TREASURY NOTES THE CRIMINAL INQUIRY MARKS THE SECOND TIME IN AS MANY YEARS THAT THE ANTITRUST DIVISION HAS INVESTIGATED POSSIBLE COLLUSION IN THE MARKET FOR US TREASURY SECURITIES ACCORDING TO LAWYERS FAMILIAR WITH THE INVESTIGATION A FEDERAL GRAND JURY IN NEW YORK HAS ISSUED SUBPOENAS TO MORE THAN 10 OF THE 39 PRIMARY GOVERNMENT SECURITIES DEALERS INCLUDING GOLDMAN SACHS & CO BEAR STEARNS & CO JP MORGAN & CO AND PAINEWEBBER GROUP INC'S PAINE WEBBER INC A SUBPOENA SEEKING INFORMATION ALSO WENT TO THE TRADE GROUP THE PUBLIC SECURITIES ASSOCIATION THE LAWYERS SAID THE INQUIRY APPEARS TO FOCUS ON WHETHER SOME OF THE PRIMARY DEALERS COLLUDED TO GET THE PSA TO RECOMMEND A RULE CHANGE THAT MADE IT MORE DIFFICULT FOR SMALLER COMPETITORS TO TOP THEIR BIDS WHEN TRADING TREASURY NOTES THIS INQUIRY IS THE SECOND BY THE ANTITRUST UNIT INTO THE TREASURY SECURITIES MARKET SINCE THE SALOMON INC TREASURY AUCTION SCANDAL BROKE IN 1991 THIS LATEST INQUIRY COVERS THE SAME TIME PERIOD AS THE EARLIER INVESTIGATION BUT IT DOESN'T INVOLVE THE TREASURY AUCTIONS WHICH ARE USED BY THE GOVERNMENT TO RAISE BILLIONS OF DOLLARS TO FUND ITS OPERATIONS WITH THE SALE OF SECURITIES RATHER IT SCRUTINIZES THE SECONDARY MARKET IN WHICH TREASURY NOTES ARE TRADED AFTER THEY ARE BOUGHT FROM THE GOVERNMENT IN 1991 THE TRADING PRACTICES COMMITTEE PART OF PSA'S GOVERNMENT DIVISION RECOMMENDED TO TRADERS THAT PRICECHANGE INCREMENTS FOR TRADES OF LONGTERM TREASURY NOTES BE INCREASED TO 1/64 OF FACE VALUE FROM 1/128 PRIMARY DEALERS ARE THOSE SECURITIES FIRMS AND BANKS APPROVED BY THE FEDERAL RESERVE TO BUY TREASURY SECURITIES DIRECTLY FROM THE GOVERNMENT THEY ARE AMONG THE BIGGEST PLAYERS IN THE TREASURY SECURITIES MARKET THE INCREASED INCREMENTS MAKE IT MORE EXPENSIVE FOR SMALLER COMPETITORS TO BETTER THE BIG PLAYERS' BIDS IN SECONDARYMARKET TRADING SUCH A CHANGE MIGHT BE SEEN BY THE JUSTICE DEPARTMENT AS ANTICOMPETITIVE THE CHAIRMAN OF THE PSA COMMITTEE AT THE TIME WAS THOMAS F MURPHY A FORMER MANAGING DIRECTOR OF SALOMON BROTHERS WHO RESIGNED IN THE WAKE OF THE FIRM'S TREASURY AUCTION SCANDAL A SPOKESWOMAN FOR SALOMON SAID FRIDAY SHE DIDN'T KNOW WHETHER THE FIRM HAD BEEN ISSUED A SUBPOENA IN THE MATTER MR MURPHY'S LAWYERS SAID THEY WERE AWARE OF THE INQUIRY BUT THAT THEIR CLIENT WAS NOT INVOLVED MARK LEHMAN SENIOR MANAGING DIRECTOR AND GENERAL COUNSEL AT BEAR STEARNS SAID THE FIRM WOULD COOPERATE WITH THE GOVERNMENT AND THAT HE WAS UNAWARE OF ANY WRONGDOING BY THE FIRM OFFICIALS AT GOLDMAN SACHS AND PAINE WEBBER SAID THEIR FIRMS ARE COOPERATING WITH THE INVESTIGATION A SPOKESMAN FOR JP MORGAN DIDN'T RETURN A PHONE CALL SEEKING COMMENT A SPOKESWOMAN FOR THE JUSTICE DEPARTMENT SAID OUR INVESTIGATION IS CONTINUING INTO THE GOVERNMENT SECURITIES MARKET SHE DECLINED TO ELABORATE THE PSA SAID IN A STATEMENT WE BELIEVE THAT ONCE THE DEPARTMENT OF JUSTICE HAS REVIEWED ALL THE FACTS CONCERNING THIS RECOMMENDATION IT WILL CONCLUDE THAT NO ANTITRUST ENFORCEMENT ACTION IS WARRANTED THE SUBPOENAS SEEK LISTS OF EMPLOYEES SERVING ON PSA COMMITTEES ANY INHOUSE REPORTS THAT MIGHT HAVE BEEN PREPARED BY THE FIRMS ON WHAT EFFECT THE INCREMENT CHANGE WOULD HAVE ON TRADING AND EXTENSIVE DATA ON HOW THE MARKET HAS OPERATED SINCE THE CHANGE ACCORDING TO PEOPLE WHO HAVE SEEN THE SUBPOENAS THE LAWYERS FAMILIAR WITH THE INVESTIGATION SAID THE SUBPOENAS APPEARED TO BE ANOTHER EFFORT BY THE ANTITRUST UNIT TO DISCOVER WHETHER THE PRIMARY DEALERS AND OTHER MARKET PLAYERS HAVE COLLUDED TO CONTROL THE HUGE TREASURY SECURITIES MARKET THESE LAWYERS POINT OUT THAT THE ANTITRUST UNIT BEGAN ITS INVESTIGATION INTO THE AUCTION SCANDAL WITH BROADBASED SUBPOENAS ON A NUMBER OF PRIMARY DEALERS BEFORE NARROWING THE SCOPE OF THE INQUIRY THE PRIMARY DEALERS AND THE PSA ARE EXPECTED TO ARGUE THAT THE CHANGE ENHANCED THE EFFICIENCY OF THE SECONDARY MARKET THEY ALSO ARE EXPECTED TO CONTEND THAT BECAUSE RECOMMENDATIONS OF THE PSA ARE PUBLIC AND OFTEN MADE AFTER DISCUSSION WITH GOVERNMENT AGENCIES SUCH AS THE TREASURY DEPARTMENT IT ISN'T FAIR TO START AN ANTITRUST INVESTIGATION THE COMMITTEE MADE THE RECOMMENDATION WITH THE GOAL OF INCREASING EFFICIENCY OF LARGE BLOCK TRADES PROMOTING GREATER LIQUIDITY IN THE MARKET AND STANDARDIZING TRADING INCREMENTS THE PSA STATEMENT SAYS SUCH RECOMMENDATIONS ARE VOLUNTARY THE STATEMENT SAID THAT MEANS SECONDARY MARKET TRADERS COULD CONTINUE TO DEAL WITH THE SMALLER PRICE CHANGES IF THEY WANTED TO IN PRACTICE HOWEVER THE SECONDARY MARKET IS DOMINATED BY THE BIG PLAYERS MANY OF WHICH ARE PRIMARY DEALERS THE JUSTICE DEPARTMENT HASN'T MADE CLEAR WHAT IT CONSIDERS POTENTIALLY CRIMINAL ABOUT THE RULE CHANGE LAWYERS AND TRADERS SPECULATED THAT BY INCREASING THE INCREMENT THE RULE MIGHT BOOST POTENTIAL PROFIT MARGINS IN THE SECONDARY MARKET BUT PROFITS ARE BESIDE THE POINT OF AN ANTITRUST VIOLATION EVIDENCE OF COLLUSION IS THE CRITICAL MATTER IN PROVING SUCH A CHARGE THE GOVERNMENT HAS TOLD LAWYERS REPRESENTING PRIMARY DEALERS THAT IT'S TOO EARLY IN THE INVESTIGATION TO IDENTIFY THE SUBJECTS OR TARGETS OF THE GRAND JURY THE LATEST INQUIRY COMES AS THE PSA DISCUSSES WITH GOVERNMENT REGULATORS HOW TO CHANGE THE OPERATIONS OF THE TREASURY MARKET IN THE WAKE OF THE SALOMON SCANDAL A SENIOR OFFICIAL AT A PRIMARY DEALER NOT YET SUBPOENAED SAID HE WAS CONCERNED THAT THE INQUIRY MAY HAVE A CHILLING EFFECT ON THE DISCUSSIONS BETWEEN THE PSA AND GOVERNMENT REGULATORS BY FOCUSING ATTENTION ON HOW BIG FIRMS WORK TOGETHER TO SET STANDARD TRADING POLICES THE OUTCOME OF THE INQUIRY COULD ALSO AFFECT ATTEMPTS BY THE PSA AND OTHER TRADE GROUPS TO ESTABLISH COMMON PRACTICES FOR DERIVATIVE MARKETS SUCH AS FUTURES AND OPTIONS AND NEW FINANCIAL PRODUCTS 9306210163 930621 BUSINESS BRIEF SUPERMARKETS GENERAL HOLDINGS NOTEHOLDERS' ACCORD CLEARS WAY FOR RECAPITALIZATION SUPERMARKETS GENERAL HOLDINGS CORP WOODBRIDGE NJ SAID A MAJORITY OF CERTAIN NOTEHOLDERS HAVE AGREED TO AN EXCHANGE OF NOTES AND TO AMENDMENTS IN THEIR DEBT COVENANTS THAT WILL CLEAR THE WAY FOR THE COMPANY'S RECENTLY ANNOUNCED RECAPITALIZATION PLAN SUPERMARKETS GENERAL WHICH OPERATES THE PATHMARK CHAIN SAID ITS RECAPITALIZATION PLAN INCLUDES A PUBLIC OFFERING OF ABOUT 150 MILLION IN COMMON SHARES AND NEW BORROWINGS OF ABOUT 11 BILLION FOR REPAYMENT OF EXISTING DEBTS IT ALSO INCLUDES THE SPINOFF TO SHAREHOLDERS OF PATHMARK'S RICKEL HOMECENTER BUSINESS AND WAREHOUSING AND TRANSPORTATION SERVICES THAT SERVICE ITS SUPERMARKETS AND DRUGSTORES 9306210162 930621 TECHNOLOGY & HEALTH MERCK & CO RAISES PRICES BY 42 ON 23 PRODUCTS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL AMID INTENSE PUBLIC SCRUTINY OVER POSSIBLE PRICE INFLATION IN PRESCRIPTION DRUGS MERCK & CO LAST WEEK RAISED PRICES OF 23 PRESCRIPTION DRUGS INCLUDING SOME OF ITS BIGGEST PRODUCTS BY 42 THE WHITEHOUSE STATION NJ COMPANY WAS CAREFUL TO ABIDE BY ITS STATED POLICY OF HOLDING ANNUAL PRICE INCREASES ON INDIVIDUAL DRUGS TO ONE PERCENTAGE POINT ABOVE THE CONSUMER PRICE INDEX INCREASE ACCORDING TO A MERCK SPOKESMAN THE COMPANY PROJECTS THE CPI INCREASE WILL BE 32 THIS YEAR HE ADDED AMONG THE PRODUCTS WHOSE PRICES WERE RAISED AS OF JUNE 14 WERE HEART DRUGS VASOTEC AND PRINIVIL PROSTATE DRUG PROSCAR AND ULCER DRUG PEPCID CHOLESTEROLLOWERING DRUGS MEVACOR AND ZOCOR WEREN'T INCLUDED IN THIS ROUND OF PRICE INCREASES BUT HAD GONE THROUGH A 41 PRICE INCREASE LAST NOVEMBER SEPARATELY THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION SAID THE PRESCRIPTION DRUG PRICE INCREASE FOR ALL COMPANIES WAS 33 DURING THE YEAR ENDED IN MAY COMPARED WITH 32 FOR ALL ITEMS IN THE CPI INDICATING THAT THE 17 PHARMACEUTICAL COMPANIES THAT PLEDGED TO CONTAIN PRICE INCREASES ARE KEEPING THEIR PROMISES MARTIN WYGOD CHAIRMAN OF MEDCO CONTAINMENT SERVICES INC A BIG DISCOUNT MAILORDER PRESCRIPTION DRUG SELLER SAID THE INDUSTRY HAD EXPECTED MERCK'S PRICE INCREASES BUT THOUGHT THEY WOULD COME MONTHS AGO SOME OF THE STRONGEST CRITICS OF THE DRUG INDUSTRY IN WASHINGTON COULDN'T FIND FAULT WITH MERCK'S ACTION JOHN COSTER AN AIDE TO SEN DAVID PRYOR D ARK SAID THE INCREASES APPEARED TO BE CONSISTENT WITH MERCK'S STATED POLICY WHICH SEEMS TO BE A REASONABLE WAY TO CONTROL DRUG COSTS THE TIMING OF MERCK'S MOVE REMINDED SOME ANALYSTS OF THE LIMITEDTIME DISCOUNTS ON MEVACOR AND ZOCOR OFFERED LATE IN THE FIRST QUARTER WHICH SOME VIEWED AS AN ATTEMPT TO BOOST QUARTERLY SALES THE CURRENT PRICE INCREASE ALLOWS A BUYIN PERMITTING MERCK CUSTOMERS TO BUY ABOUT A MONTH'S SUPPLY OF THE DRUGS AT THE OLD PRICE ON ORDERS RECEIVED BY JUNE 28 THAT MAY INDICATE THAT THE COMPANY IS TRYING TO DRAW IN REVENUE AHEAD OF THE SECOND QUARTER'S END AN ANALYST SAID THE MERCK SPOKESMAN HOWEVER DENIED THAT THE COMPANY WAS TRYING TO BOOST SECONDQUARTER REVENUE WITH ITS BUYIN THE PRICE INCREASE WAS NECESSARY TO OFFSET HIGHER EXPENSES IN MANUFACTURING WAGES MATERIALS AND SHIPPING HE SAID MOREOVER RESEARCH AND DEVELOPMENT EXPENSES WILL RISE BY MORE THAN 10 TO 12 BILLION HE SAID 9306210161 930621 WHO'S NEWS KODAK NAMES BIEHN TO SUCCEED PALERMO AT FILM PRODUCT POST ROCHESTER NY EASTMAN KODAK CO SAID IT WILL NAME AN INSIDER AS ITS NEW GENERAL MANAGER FOR WORLDWIDE CONSUMER FILM PRODUCTS DAVID P BIEHN 47 YEARS OLD FORMERLY HEAD OF THE COMPANY'S PROFESSIONAL PHOTOGRAPHY DIVISION WILL SUCCEED PETER M PALERMO 51 WHO IS RETIRING AT THE END OF THE YEAR CURRENTLY MR PALERMO IS IN CHARGE OF WORLDWIDE CONSUMER FILM PRODUCTS AS WELL AS WORLDWIDE MARKETING STRATEGIES FOR KODAK'S 11 BILLION IMAGING GROUP WHEN HE RETIRES HIS WORLDWIDE MARKETING RESPONSIBILITIES WILL BE COLLAPSED BACK INTO INDIVIDUAL BUSINESSES OF THE IMAGING GROUP MR PALERMO ASSUMED HIS WORLDWIDE MARKETING RESPONSIBILITIES JUST FOUR MONTHS AGO HIS APPOINTMENT TO THAT POST AND NOW MR BIEHN'S APPOINTMENT RAISE QUESTIONS ABOUT KODAK'S STATEMENTS EARLIER THIS YEAR THAT IT WOULD HIRE AN OUTSIDER FOR A SENIOR MARKETING POSITION IN A STATEMENT KODAK EMPHASIZED THAT MR BIEHN COMPETED WITH OUTSIDERS FOR HIS NEW JOB AND THAT HIS APPOINTMENT DOES NOT END THE EXTERNAL SEARCH FOR MARKETING PROFESSIONALS FOR THE UNIT MR BIEHN WILL BE SUCCEEDED BY KODAK'S MOST SENIOR FEMALE EXECUTIVE KATHERINE M HUDSON 46 MS HUDSON VICE PRESIDENT AND GENERAL MANAGER OF PRINTING AND PUBLISHING IMAGING WILL HEAD UP PRINTING PUBLISHING AND PROFESSIONAL IMAGING SHE IS CREDITED WITH TRIPLING EARNINGS IN KODAK'S GRAPHIC ARTS BUSINESS IN THE PAST TWO YEARS SEPARATELY KODAK CHAIRMAN KAY R WHITMORE SAID IN AN INTERVIEW EARLIER THIS WEEK THAT HE HAS TWO VERY GOOD OUTSIDE CANDIDATES TO SUCCEED CHRISTOPHER J STEFFEN AS CHIEF FINANCIAL OFFICER MR STEFFEN WHO JOINED KODAK FROM HONEYWELL INC QUIT IN APRIL AFTER ONLY 11 WEEKS ON THE JOB BUT MR WHITMORE IS CONTINUING TO INTERVIEW NEW CANDIDATES MR WHITMORE SAID HE HOPES TO NAME MR STEFFEN'S SUCCESSOR IN TIME FOR THAT PERSON TO ADD OUTSIDE PERSPECTIVE TO KODAK'S TURNAROUND PLAN WHICH MR WHITMORE HAS PROMISED TO DELIVER BY SEPTEMBER 9306210160 930621 WHO'S NEWS FEDERAL EXPRESS CORP FEDERAL EXPRESS CORP MEMPHIS TENN DAVID F REBHOLZ 40 YEARS OLD AND T MICHAEL GLENN 38 WERE NAMED TO SENIOR VICE PRESIDENT POSTS AT THIS SMALLPACKAGE DELIVERY COMPANY MR REBHOLZ WHO MOST RECENTLY WAS VICE PRESIDENT OF THE CENTRAL REGION FOR DOMESTIC GROUND OPERATIONS WILL BE SENIOR VICE PRESIDENT SALES AND CUSTOMER SERVICES HE REPLACES WILLIAM RAZZOUK 45 WHO EARLIER WAS PROMOTED TO EXECUTIVE VICE PRESIDENT OF WORLDWIDE CUSTOMER OPERATIONS MR GLENN WHO WAS SENIOR VICE PRESIDENT OF CATALOG AND REMAIL SERVICES WILL BE SENIOR VICE PRESIDENT MARKETING CATALOG SERVICES AND CORPORATE COMMUNICATIONS HE RETAINS THE DUTIES OF HIS PREVIOUS POSITION AND SUCCEEDS CAROLE A PRESLEY 44 WHO EARLIER ANNOUNCED PLANS TO RESIGN AS MARKETING CHIEF AND FORM A CONSULTING FIRM 9306210159 930621 WHO'S NEWS STATION CASINOS INC STATION CASINOS INC LAS VEGAS R HAL DEAN WAS ELECTED A DIRECTOR EXPANDING THE BOARD TO FIVE MEMBERS MR DEAN IS A RETIRED CHAIRMAN AND CHIEF EXECUTIVE OF RALSTON PURINA CO THE CASINO COMPANY SAID 9306210158 930621 WORK & FAMILY A SPECIAL REPORT ON THE JOB WHAT PROBLEM CHIEF EXECUTIVES MAY NOT SYMPATHIZE WITH WORKFAMILY CONFLICTS FOR A SIMPLE REASON THEY RARELY HAVE THEM BY FRANK EDWARD ALLEN EVEN WITH THE PASSING OF DECADES SOME ASPECTS OF LIFE IN THE EXECUTIVE SUITE DON'T SEEM TO CHANGE MUCH MEN WHO SET THE TONE AT THE TOP OF AMERICA'S LARGEST COMPANIES STILL REPRESENT TRADITIONAL LIFESTYLES MORE REFLECTIVE OF WORKPLACE CONDITIONS OF THE 1950S THAN THE 1990S TO GAIN PERSPECTIVE ON THE FAMILY EXPERIENCES OF THESE LEADERS THE WALL STREET JOURNAL SURVEYED CHIEF EXECUTIVE OFFICERS OF THE 100 LARGEST US INDUSTRIAL COMPANIES THESE CHIEF EXECUTIVES ALL MEN WERE ASKED ABOUT THEIR MARITAL STATUS ABOUT CURRENT AGES OF THEIR CHILDREN AND ABOUT CHILDCARE ARRANGEMENTS WHEN THE CHILDREN WERE YOUNG SEVENTYSIX OF THE 100 EXECUTIVES RESPONDED TO THE SURVEY THE SAMPLING REPRESENTS LEADERS FROM ALL REGIONS OF THE COUNTRY AND THE MAJOR INDUSTRY GROUPS INCLUDING PRODUCERS OF ENERGY CHEMICALS PAPER AND OTHER BASIC MATERIALS AUTOMOBILE MAKERS MANUFACTURERS OF INDUSTRIAL EQUIPMENT AND MACHINES TECHNOLOGY COMPANIES AND MAKERS OF FOOD PHARMACEUTICALS AND OTHER CONSUMER PRODUCTS DESPITE THE BALANCED SAMPLING THE FINDINGS ARE LOPSIDED AND THEY PROVIDE AN INSIGHT INTO WHY US EMPLOYERS HAVE BEEN SLOW TO ADJUST TO SWEEPING DEMOGRAPHIC CHANGES IN THE WORK FORCE THE SURVEY SHOWS THAT THE OVERWHELMING MAJORITY OF CHIEF EXECUTIVES HAVE NEVER EXPERIENCED THE WORKFAMILY PRESSURES THAT BURDEN SO MANY OF THEIR EMPLOYEES THAT LACK OF PERSONAL EXPERIENCE DOESN'T AUTOMATICALLY MEAN MOST CHIEF EXECUTIVES ARE INSENSITIVE OR UNAWARE BUT IT PROBABLY LIMITS THEIR CAPACITY TO APPRECIATE MANY OF THE CHILDCARE FRUSTRATIONS THAT HAVE BECOME SO COMMON FOR THEIR SUBORDINATES WHEN IT COMES TO CHILD CARE THERE IS A PROFOUND DISCONTINUITY BETWEEN THE LIFE EXPERIENCES OF CORPORATE SENIOR MANAGEMENT AND THE EXPERIENCES OF THE REST OF US SAYS AN EMPLOYEERELATIONS SPECIALIST AT A MANUFACTURING COMPANY WITH ANNUAL SALES OF MORE THAN 20 BILLION THE CEOS REALLY DON'T KNOW THIS ISSUE VISCERALLY ACCORDING TO THE SURVEY COMPILED IN APRIL AND MAY 100 OF THE RESPONDENTS HAVE CHILDREN THE VAST MAJORITY OF THESE CHILDREN WERE BORN IN THE 1960S OR EARLIER WHEN THE CHILDEN WERE YOUNG UNDER ONE YEAR TO 13 YEARS OLD CHILD CARE WAS USUALLY PROVIDED BY THEIR MOTHERS AT HOME ONLY ABOUT ONETENTH OF THE RESPONDENTS MENTIONED EVER HAVING HIRED A BABY SITTER OR NANNY FOR CHILD CARE IN THEIR HOMES IN ALL BUT TWO OF THOSE CASES THE SITTERS WORKED ONLY OCCASIONALLY PERHAPS THE MOST REVEALING STATISTIC OF THE SURVEY WAS A ZERO AMONG THE 76 RESPONDENTS NONE HAD USED ANY OUTSIDE DAYCARE OR OTHER CHILDCARE SERVICE IN ADDITION 95 SAID THEIR SPOUSES NEVER WORKED OUTSIDE THE HOME FOR PAY WHILE THE CHILDREN WERE YOUNG AND THE FATHER WAS ON HIS WAY UP THE CORPORATE LADDER ONLY 13 SAID THAT EITHER PARENT HAD EXPERIENCED ANY HARDSHIP IN CONNECTION WITH THEIR CHILDCARE ARRANGEMENTS IN THOSE CASES THE ADDED STRESS WAS ALMOST INVARIABLY ON THE WIFE SIGNIFICANT PERIODS OF TRAVEL MUCH OF IT FOREIGN PLACED A HEAVY LOAD ON THE SHOULDERS OF MY SPOUSE WHO MADE MAJOR SACRIFICES IN HER POSITION AS SINGLE PARENT' DURING THOSE ABSENCES SAID THE CHIEF EXECUTIVE OF A LEADING ENERGY COMPANY GOD BLESS HER FOR IT JP BOLDUC PRESIDENT AND CHIEF EXECUTIVE OF WR GRACE & CO IN BOCA RATON FLA SAID THE KEY TO SUCCESS IS A DEDICATED SPOUSE AT HOME WITH THE CHILDREN DESPITE SUCH HEARTFELT EXPRESSIONS OF GRATITUDE SOME CHIEF EXECUTIVES ALSO ACKNOWLEDGED THAT INTENSE DEMANDS OF THE CAREER TOOK A TOLL ON THE WIFE THE MARRIAGE AND THE CHILDREN THE FAMILY USUALLY GETS SHORTCHANGED OVER THE COMPANY MOST CONSEQUENCES REST ON THE SPOUSE SAID THE PRESIDENT OF A MAJOR PHARMACEUTICALS COMPANY THE CHIEF EXECUTIVE OF A LEADING TECHNOLOGY COMPANY EXPRESSED REGRET THAT HIS WIFE COULD NOT PURSUE HER OWN CAREER GOALS UNTIL OUR CHILDREN WERE OLDER AND MORE INDEPENDENT SAY AGE 14 SUCH FINDINGS ARE STRIKINGLY SIMILAR TO SURVEY RESULTS FROM MORE THAN A DECADE AGO IN 1981 THE WALL STREET JOURNAL POLLED 476 WOMEN WHO WERE MARRIED TO TOP EXECUTIVES OF THE 1300 LARGEST US COMPANIES ACCORDING TO THAT SURVEY TWOTHIRDS OF THE WOMEN WERE MOTHERS OF THREE OR MORE CHILDREN AND ONLY ABOUT 3 WERE EMPLOYED FULL TIME OUTSIDE THE HOME FOR WAGES OR SALARY SOME OF THESE WIVES WERE FRUSTRATED BY THE ATTITUDES OF THEIR HUSBANDS I MUST FORGO MY EVENTS WHEN THERE IS A CONFLICT BETWEEN HIS ACTIVITIES AND MINE COMPLAINED A WOMAN WHO WANTED TO PURSUE A CAREER OF HER OWN LONG DISCUSSIONS ABOUT MY GOALS ARE LISTENED TO BUT NOT REALLY CONSIDERED IMPORTANT BECAUSE I WILL NEVER BE THE MAJOR BREADWINNER A MOTHER OF EIGHT CHILDREN DESCRIBED HAVING CURTAILED FULFILLMENT IN MY PROFESSION NURSING IN ORDER TO HOLD THE FORT A WIFE IN HER 50S OFFERED THIS ADVICE TO ANY YOUNGER WOMAN ABOUT TO MARRY A PROMISING EXECUTIVE BE SURE YOU ARE READY TO PLAY SECOND OR LAST FIDDLE IN THE BAND YOUR HUSBAND CONDUCTS YOUR NEEDS WILL COME LAST SO YOU SHOULD WANT HIS SUCCESS AT MOST ANY COST IN THE SURVEY OF CHIEF EXECUTIVES ONE EXCEPTION TO THE GENERAL PATTERN STOOD OUT THE CHIEF EXECUTIVE OF A TECHNOLOGY COMPANY EXPRESSED EMPATHY FOR THE HARDSHIPS THAT SINGLE PARENTS CAN FACE I WAS A SINGLE PARENT FOR A COUPLE OF YEARS HE SAID FOLLOWING THE DEATH OF MY SPOUSE MR ALLEN IS A NEWS EDITOR IN THE WALL STREET JOURNAL'S NEW YORK BUREAU WHEN THE WALL STREET JOURNAL ASKED THE NATION'S BIGGEST COMPANIES ABOUT THEIR CHIEF EXECUTIVE'S OWN CHILDCARE ARRANGEMENTS THE ANSWERS WERE ALMOST ALWAYS THE SAME THE BOSSES HAD WIVES WHO STAYED AT HOME WITH THE CHILDREN HERE IS HOW THE COMPANIES RESPONDED TO SPECIFIC QUESTIONS 9306210157 930621 NEW YORK FED'S DATA ON SQUEEZES' GET SEC SUPPORT BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION TERMED NOT UNREASONABLE THE FEDERAL RESERVE BANK OF NEW YORK'S DETERMINATIONS THAT NATURAL MARKET FORCES CAUSED THE TREASURY SECURITIES MARKET SQUEEZES THAT HAVE OCCURRED PERIODICALLY SINCE THE SALOMON BROTHERS INC SCANDAL THE SEC'S STATEMENT WHICH FELL SHORT OF AN UNQUALIFIED EMBRACE OF THE NEW YORK FED'S CONCLUSIONS CAME IN A REPORT IN WHICH THE AGENCY OUTLINED THE WORKINGS OF THE NEW INTERAGENCY GROUP THAT HAS BEEN MONITORING THE GOVERNMENT SECURITIES MARKET SINCE EARLY LAST YEAR THE NEW YORK FED HAS TOLD CONGRESS THAT NATURAL MARKET FORCES ON BALANCE CAUSED A SERIES OF TREASURY MARKET SQUEEZES LAST YEAR BUT E GERALD CORRIGAN PRESIDENT OF THE NEW YORK FED CAUTIONED THAT WE REMAIN MINDFUL THAT THE MANNER IN WHICH MARKET PARTICIPANTS PURSUE PROFIT OPPORTUNITIES CAN RAISE CONCERNS OF WHETHER SOME PARTICIPANTS EXERT ANY UNDUE INFLUENCE ON MARKET PRICES AND FINANCING RATES PARTICIPANTS IN THE NEW WORKING GROUP FOR TREASURY MARKET SURVEILLANCE IN ADDITION TO THE SEC AND NEW YORK FED ARE THE TREASURY FEDERAL RESERVE BOARD AND THE COMMODITY FUTURES TRADING COMMISSION UNDER THE FRAMEWORK OF THE WORKING GROUP THE SEC REPORT EXPLAINED THE PRIMARY RESPONSIBILITY FOR DAYTODAY SURVEILLANCE OF THE TREASURY SECURITIES MARKET IS GIVEN TO THE NEW SURVEILLANCE UNIT AT THE NEW YORK FED IF THE NEW YORK FED FINDS SIGNS OF SIGNIFICANT CONCENTRATIONS OF POSITIONS AT PARTICULAR FIRMS OR BY PARTICULAR CUSTOMERS AND IF MEMBERS OF THE WORKING GROUP CONCLUDE SUCH CONCENTRATIONS EXIST THE REPORT SAID THE PARTIES ARE CONTACTED BY THE NEW YORK SURVEILLANCE STAFF TO EXPLAIN THEIR REASONS FOR ACQUIRING AND MAINTAINING LARGE POSITIONS IF FURTHER INQUIRIES ARE WARRANTED THE REPORT SAID THE SEC WOULD INVESTIGATE AND IF APPROPRIATE PROSECUTE FOR VIOLATIONS OF THE SECURITIES LAWS THE REPORT SAID THIS FRAMEWORK WAS FOLLOWED IN SEVERAL SQUEEZES THAT DEVELOPED IN TREASURY SECURITIES SINCE THE WORKING GROUP WAS CREATED IN EARLY 1992 IT SAID THE NEW YORK FED DETERMINED THAT IN EACH INSTANCE THERE APPEARED TO BE LEGITIMATE EXPLANATIONS BASED UPON PREVAILING MARKET DYNAMICS TO INDICATE THAT NO PARTICULAR POSITION CONCENTRATIONS WERE SUFFICIENTLY SUSPICIOUS TO WARRANT FURTHER INVESTIGATION BASED UPON ALL THE INFORMATION COLLECTED BY THE NEW YORK FED TO DATE THE SEC'S REPORT SAID THE NEW YORK FED'S DETERMINATIONS IN THESE MATTERS ARE NOT UNREASONABLE 9306210155 930621 WHO'S NEWS CAREMARK INTERNATIONAL INC CAREMARK INTERNATIONAL INC NORTHBROOK ILL DONNA WILLIAMSON 41 YEARS OLD FORMERLY VICE PRESIDENT HEALTH COST MANAGEMENT WAS NAMED SENIOR VICE PRESIDENT OF THIS PROVIDER OF HOME HEALTHCARE SERVICES THE COMPANY ALSO NAMED KRIS GIBNEY 45 PRESIDENT OF THE PRESCRIPTION SERVICE DIVISION TO THE ADDED POST OF VICE PRESIDENT HEALTH COST MANAGEMENT MICHELE HOOPER 41 FORMERLY PRESIDENT OF THE COMPANY'S INTERNATIONAL BUSINESS WAS NAMED VICE PRESIDENT INTERNATIONAL BUSINESS AND DIANE MUNSON 43 FORMERLY PRESIDENT OF CAREMARK'S HEALTHCARE SERVICES EAST DIVISION WAS NAMED VICE PRESIDENT PHYSICIAN SERVICES 9306210153 930621 LETTERS TO THE EDITOR BOY SCOUTS' INTOLERANCE SHOULDN'T BE SUBSIDIZED YOU GOT IT ALL BACKWARD IN YOUR MAY 26 EDITORIAL ON ROBERTA ACHTENBERG PRESIDENT CLINTON'S NEW FAIRHOUSING OFFICER AT HUD IN DESCRIBING AS INTOLERANT HER VOTE NOT TO SUPPORT FINANCIALLY THE ACTIVITIES OF THE BOY SCOUTS OF AMERICA YOU SET A NEW STANDARD OF TOLERANCE ONE IN WHICH WE MUST PAY FOR ORGANIZATIONS WITH WHICH WE DISAGREE OR ELSE STAND ACCUSED OF INTOLERANCE YOU TAR MS ACHTENBERG AS INTOLERANT WHEN IT IS THE BOY SCOUTS WHO ARE PREJUDICED AND INTOLERANT IN DISALLOWING MEMBERSHIP AND EMPLOYMENT TO YOUNGSTERS AND ADULTS HOMOSEXUALLY ORIENTED MS ACHTENBERG IS MORE THAN WILLING TO TOLERATE THE BOY SCOUTS SHE SIMPLY DOES NOT WANT TO ENCOURAGE AND PAY FOR THEM TO SPREAD THEIR PREJUDICE 9306210152 930621 SUPERIOR INDUSTRIES SAYS 2NDQUARTER NET WILL EXCEED ESTIMATES VAN NUYS CALIF SUPERIOR INDUSTRIES INTERNATIONAL INC EXPECTS TO REPORT SECONDQUARTER NET INCOME OF BETWEEN 125 MILLION AND 128 MILLION 15 TO 20 HIGHER THAN ANALYSTS' ESTIMATES LOUIS L BORICK PRESIDENT AND CHAIRMAN SAID PROJECTED NET INCOME EQUAL TO BETWEEN 61 CENTS AND 63 CENTS A SHARE COMPARES WITH THE 76 MILLION OR 38 CENTS A SHARE POSTED IN THE SIMILAR PERIOD LAST YEAR SECONDQUARTER SALES AT SUPERIOR WHICH MAKES CAST ALUMINUM WHEELS FOR THE AUTOMOTIVE INDUSTRY ARE ALSO EXPECTED TO SHOW A SIGNIFICANT GAIN RISING TO BETWEEN 102 MILLION AND 1035 MILLION FROM LAST YEAR'S 859 MILLION MR BORICK SAID IN AN INTERVIEW IF WE STAY SOMEWHAT CONSISTENT WITH WHERE WE'VE BEEN NET INCOME FOR THE FULL YEAR COULD BE SOMEWHERE IN THE NEIGHBORHOOD OF ABOUT 40 MILLION HE SAID IN 1992 SUPERIOR EARNED 286 MILLION OR 142 A SHARE ON SALES OF 3253 MILLION FOR THE SIX MONTHS SUPERIOR EXPECTS NET INCOME OF BETWEEN 226 MILLION AND 229 MILLION OR ABOUT 111 TO 113 A SHARE ON SALES OF BETWEEN 2001 MILLION TO 2016 MILLION MR BORICK SAID A YEAR EARLIER NET WAS 132 MILLION OR 65 CENTS A SHARE ON SALES OF 1593 MILLION MR BORICK ATTRIBUTED THE SURPRISE IN THE RECENT QUARTER AND THE COMPANY'S OVERALL STRONG PERFORMANCE TO SUPERIOR'S WHEELMAKING PLANTS RUNNING AT PEAK OPERATING CAPACITY LATELY YIELDING ABOVEAVERAGE INCREMENTAL PROFITABILITY ON THE ADDITIONAL SALES MEANWHILE THE COMPANY HAS MAINTAINED A COSTCONTAINMENT PROGRAM THAT INCLUDES INCREASED AUTOMATION AND TIGHT MANAGEMENT CONTROLS ALLOWING IT TO HOLD FIXED COSTS TO THE LEVEL THEY WERE TWO YEARS AGO THE EXECUTIVE SAID SUPERIOR HAS BEEN GROWING CONSISTENTLY AND MR BORICK PREDICTS FURTHER EXPANSION THE COMPANY PLANS TO START CONSTRUCTION JULY 1 ON A NEW PLANT IN CHIHUAHUA MEXICO IT'S EXPECTED TO BE COMPLETED NEXT FEBRUARY AND BE CAPABLE OF PRODUCING 13 MILLION WHEELS A YEAR AT FULL CAPACITY FOR THE MAJOR AUTO MAKERS OPERATING IN MEXICO SUPERIOR'S ANTICIPATED RESULTS DON'T REFLECT A 3FOR2 STOCK SPLIT TO BE DISTRIBUTED JULY 20 TO STOCK OF RECORD JULY 6 9306210151 930621 HIGH COURT RULING MAY FORCE STATES TO REFUND TAXES TO FEDERAL RETIREES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MORE THAN A DOZEN STATES COULD HAVE TO PAY TAX REFUNDS TOTALING HUNDREDS OF MILLIONS OF DOLLARS TO FEDERAL RETIREES AS A RESULT OF A RULING BY THE SUPREME COURT THE DECISION ISSUED FRIDAY ALSO WILL MAKE IT EASIER IN THE FUTURE FOR BUSINESSES THAT CHALLENGE STATE TAXES AS UNCONSTITUTIONAL TO GET REFUNDS THE QUESTION IN THE CASE WAS HOW STATES SHOULD APPLY A 1989 HIGH COURT DECISION THAT SAID THEY COULDN'T TAX THE PENSIONS OF FEDERAL RETIREES MORE HEAVILY THAN THOSE OF STATE AND LOCAL RETIREES BY A 72 VOTE THE COURT SAID STATES THAT FAVORED THEIR OWN RETIREES CAN'T SIMPLY STOP THE DISCRIMINATORY PRACTICE THESE STATES MUST PROVIDE SOME REMEDY TO THE UNFAIRLY TAXED FEDERAL RETIREES IN HIS OPINION FOR THE MAJORITY JUSTICE CLARENCE THOMAS SAID THE REMEDY DOESN'T NECESSARILY HAVE TO BE A REFUND IN THEORY A STATE COULD TRY TO EQUALIZE MATTERS BY FOR EXAMPLE GRANTING FEDERAL RETIREES TAX CREDITS IN THE FUTURE OR COLLECTING ADDITIONAL BACK TAXES FROM PREVIOUSLY FAVORED STATE AND LOCAL RETIREES JUSTICE THOMAS ALSO LEFT THE DOOR OPEN FOR STATES TO ARGUE THAT THEY NEEDN'T PAY REFUNDS TO FEDERAL RETIREES WHO FAILED TO FOLLOW STATE PROCEDURES FOR CONTESTING TAXES BUT AS A PRACTICAL MATTER MOST OF THE AFFECTED STATES EVENTUALLY ARE LIKELY TO PAY REFUNDS ACCORDING TO LAWYERS FAMILIAR WITH THE ISSUE ALTHOUGH THE TOTAL POTENTIAL LIABILITY OF THE AFFECTED STATES RUNS INTO THE HUNDREDS OF MILLIONS OF DOLLARS FERDINAND SCHOETTLE A TAX LAW PROFESSOR AT THE UNIVERSITY OF MINNESOTA NOTED THAT ONLY A SMALL FRACTION OF PEOPLE WHO QUALIFY FOR REFUNDS IN SUCH CASES TYPICALLY TAKE THE STEPS NECESSARY TO OBTAIN THEM THE CASE THE HIGH COURT DECIDED INVOLVED VIRGINIA WHICH HAS THE COUNTRY'S LARGEST NUMBER OF FEDERAL RETIREES LAWYERS FOR THE STATE INSISTED THAT FEDERAL RETIREES IN VIRGINIA DON'T DESERVE REFUNDS AND VOWED MORE LITIGATION OVER THE PROPER REMEDY IN THEIR STATE'S CASE AMONG THE OTHER STATES AFFECTED BY FRIDAY'S RULING ARE NEW YORK ARIZONA MONTANA NORTH CAROLINA AND SOUTH CAROLINA AT LEAST SEVEN STATES INCLUDING MICHIGAN WHICH WAS INVOLVED IN THE ORIGINAL 1989 CASE ALREADY HAVE AGREED TO PAY REFUNDS TO FEDERAL RETIREES THE LARGER ISSUE RAISED BY THE RETIREES' DISPUTE WAS WHETHER JUDICIAL DECISIONS THAT ANNOUNCE NEW LEGAL INTERPRETATIONS SHOULD BE APPLIED RETROACTIVELY TO ALL SIMILAR SITUATIONS THE HIGH COURT FOR YEARS HAS STRUGGLED WITH THIS QUESTION SOME JUSTICES PREFER TO RETAIN DISCRETION TO APPLY NEW INTERPRETATIONS ONLY IN THE FUTURE SIGNIFICANTLY IN THE RETIREES CASE A MAJORITY OF JUSTICES AGREED FOR THE FIRST TIME THAT IF THE COURT APPLIES A NEW INTERPRETATION TO THE ORIGINAL PARTIES THAT INTERPRETATION MUST APPLY TO OTHER PENDING OR POTENTIAL CASES THAT INVOLVE SIMILAR CIRCUMSTANCES JUSTICE THOMAS REASONED THAT SINCE THE HIGH COURT APPLIED ITS RULING TO THE PARTIES IN THE 1989 CASE FROM MICHIGAN THAT RULING SHOULD BE APPLIED TO FEDERAL RETIREES IN OTHER STATES AS WELL JUSTICES HARRY BLACKMUN JOHN PAUL STEVENS ANTONIN SCALIA AND DAVID SOUTER JOINED THE THOMAS OPINION THE COURT'S SOLIDIFYING BEHIND THIS VIEW IS GOOD NEWS FOR BUSINESS SAID MARK EVANS A WASHINGTON LAWYER SPECIALIZING IN TAX MATTERS IT MEANS THERE IS THE INCENTIVE WHEN CHALLENGING A STATE LAW THAT YOU WILL ACTUALLY GET THE MONEY NOT JUST A PYRRHIC VICTORY JUSTICES ANTHONY KENNEDY AND BYRON WHITE CONCURRED SEPARATELY THEY EMPHASIZED THAT WHEN IT WOULD BE UNFAIR OR BURDENSOME TO APPLY A NEW INTERPRETATION THE COURT SHOULD BE ABLE TO APPLY IT ONLY IN FUTURE CASES 9306210150 930621 GM CONSIDERS SALE OR SPINOFF OF EDS TO LURE TELECOMMUNICATIONS PARTNER BY JOSEPH B WHITE STAFF REPORTER OF THE WALL STREET JOURNAL FLINT MICH ELECTRONIC DATA SYSTEMS CORP IS EAGER FOR AN ALLIANCE WITH A TELECOMMUNICATIONS PARTNER AND ITS PARENT GENERAL MOTORS CORP ISN'T RULING OUT A SALE OR SPINOFF OF THE BIG DATA PROCESSING UNIT TO DO IT EDS CHAIRMAN LESTER M ALBERTHAL SAID FRIDAY WE HAVE LOTS ON THE BURNER MR ALBERTHAL SAID DURING AN INTERVIEW AFTER RECEIVING AN HONORARY DEGREE AT THE GENERAL MOTORS INSTITUTE HERE WHEN IT'S COOKED IS THE KEY GM AND EDS HAVE CONSIDERED NUMEROUS OPTIONS INCLUDING A SPINOFF OF THE SUBSIDIARY SO FAR MR ALBERTHAL SAID NOTHING'S MADE BUSINESS SENSE MR ALBERTHAL'S COMMENTS ARE THE LATEST INDICATION THAT THE DETROIT AUTO MAKER IS PEDDLING ONE OF ITS MOST PROFITABLE ASSETS IN HOPES OF PULLING A DOUBLE PLAY THAT GIVES EDS THE COMMUNICATIONS MUSCLE IT NEEDS TO COMPETE IN THE INFORMATION MARKET AND PUTS CASH IN GM'S POCKET JUST LAST MONTH MR ALBERTHAL'S BOSS GM EXECUTIVE VICE PRESIDENT HARRY J PEARCE DECLARED THAT GM AND EDS AREN'T GOING TO LET ANY GRASS GROW UNDER OUR FEET IN THE SEARCH FOR A COMMUNICATIONS ALLIANCE MR PEARCE SAID EDS IS TALKING TO A NUMBER OF COMMUNICATIONS COMPANIES INCLUDING AMERICAN TELEPHONE & TELEGRAPH CO AND WOULDN'T RULE OUT ANYTHING IT WASN'T LONG AGO THAT GM EXECUTIVES DISCLAIMED ANY DESIRE TO PART WITH EITHER EDS OR ITS PROFITS GM BOUGHT EDS IN 1984 FOR 25 BILLION THE UNIT'S STOCK IS WORTH ABOUT 16 BILLION TODAY AND EARNINGS LAST YEAR WERE 6355 MILLION BUT THE REALITIES OF THE HIGHLY COMPETITIVE INFORMATION MARKET AND GM'S OWN PRESSING NEED FOR CASH TO FINANCE THE OVERHAUL OF ITS DOMESTIC AUTOMOTIVE BUSINESS ARE CAUSING GM TO SING A DIFFERENT TUNE EDS NEEDS A COMMUNICATIONS PARTNER BECAUSE MORE CUSTOMERS IN THE DATA PROCESSING MARKET WANT ONE COMPANY THAT CAN PUT TOGETHER AN INTEGRATED NETWORK OF COMPUTER AND COMMUNICATION SYSTEMS INCLUDING PHONES FAXES AND VIDEO FEEDS ALREADY A SCRAMBLE IS UNDER WAY AMONG BIG PHONE CABLEVISION AND COMPUTER FIRMS LOOKING TO LOCK IN PARTNERS AND CAPITALIZE ON THE MERGER OF ONCEISOLATED COMMUNICATIONS TECHNOLOGIES GM AND EDS HELD TALKS EARLIER THIS YEAR WITH BRITISH TELECOMMUNICATIONS PLC BUT THE NEGOTIATIONS BROKE OFF LAST MONTH APPARENTLY SCUTTLING A PROPOSAL UNDER WHICH GM WOULD HAVE SOLD THE BRITISH COMMUNICATIONS GIANT AS MUCH AS 25 OF THE OUTSTANDING GM CLASS E SHARES THAT REPRESENT A DIVIDEND INTEREST IN EDS'S EARNINGS MEANWHILE MR ALBERTHAL SAID EDS IS IN THE MIDST OF A FISCAL FITNESS PROGRAM THAT HAS LED TO SOME LAYOFFS DECISIONS TO DISCHARGE WORKERS ARE BEING MADE BY BUSINESS UNIT MANAGERS MR ALBERTHAL SAID ADDING HE DIDN'T KNOW HOW MANY PEOPLE HAD LOST JOBS 9306210149 930621 WHO'S NEWS A&M'S COFOUNDERS LEAVE POSTS AT LABEL NEW YORK JERRY MOSS AND HERB ALPERT COFOUNDERS OF A&M RECORDS ANNOUNCED AS EXPECTED THAT THEY WILL LEAVE THEIR EXECUTIVE POSTS AT THE LABEL TO PURSUE OTHER INTERESTS THE TWO SOLD THE COMPANY IN 1990 TO POLYGRAM NV WHICH IS 80 OWNED BY PHILIPS ELECTRONICS NV MESSRS ALPERT AND MOSS FOUNDED A&M RECORDS IN 1962 ADDING SUCH ACTS AS JOE COCKER AND BURT BACHARACH TO A ROSTER THAT INCLUDED HERB ALPERT AND THE TIJUANA BRASS TODAY A&M'S LINEUP INCLUDES ROCK BAND SOUNDGARDEN AND SINGER JANET JACKSON MR MOSS 58 YEARS OLD HAS BEEN CHAIRMAN OF A&M AND MR ALPERT ALSO 58 HAS SERVED AS VICE CHAIRMAN THE COMPANY'S OPERATIONS WILL CONTINUE TO BE RUN POLYGRAM SAID BY PRESIDENT AL CAFARO 44 YEARS OLD 9306210148 930621 MANAGER'S JOURNAL DO THE RIGHT THING IN BUSINESS BY HUGH AARON A PSYCHIATRIST I KNOW ONCE ACCUSED ME OF BEING MORALLY CORRUPT SINCE I WAS A BUSINESSMAN AND MY MOTIVES WERE RULED BY THE BOTTOM LINE IT FOLLOWED THAT I HAD TO BE DISHONEST IN MY BUSINESS DEALINGS AT LEAST SOME OF THE TIME ALTHOUGH I FELT OUTRAGED I UNDERSTOOD THE SOURCE OF THIS STEREOTYPE OF THE ENTREPRENEUR IT'S INDIGENOUS TO OUR CULTURE INDEED FROM MY ASSOCIATION WITH MY FATHER'S UPHOLSTERING BUSINESS I GREW UP KNOWING HOW EASILY A VENDOR COULD CHEAT THE CUSTOMER THE CUSTOMER COULDN'T POSSIBLY KNOW UNTIL YEARS LATER THE QUALITY OF MATERIALS HIDDEN BENEATH THE COVER OF AN OVERSTUFFED CHAIR ALTHOUGH MY FATHER USUALLY GAVE THE CUSTOMER FAIR VALUE HE KNEW THAT MANY OF HIS COMPETITORS DIDN'T LONG BEFORE I BECAME AN ENTREPRENEUR I TOO CAME TO DOUBT THE HONESTY OF MOST BUSINESSMEN NOT UNTIL I STRUCK OUT ON MY OWN HOWEVER DID I REALIZE HOW RIFE WERE THE OPPORTUNITIES TO BE DISHONEST NOT ONLY WITH CUSTOMERS BUT ALSO WITH VENDORS EMPLOYEES AND THE GOVERNMENT IN OUR BUSINESS OF MANUFACTURING COLOR CONCENTRATES FOR THE PLASTICS INDUSTRY WE COULD HAVE USED OFFGRADE PLASTIC MATRICES OR CHEAPER PIGMENTS THE DIFFERENCE WOULD NOT HAVE BEEN APPARENT UNTIL WELL INTO THE FUTURE NO MATTER WE USED THE BEST OCCASIONALLY A CUSTOMER FORGOT TO SEND A BILL FOR MATERIALS SHIPPED TO US FOR PROCESSING SIMILAR INCIDENTS OCCURRED WITH VENDORS WHO BILLED US TOO LITTLE OR NOT AT ALL IT WOULD HAVE BEEN SO EASY TO RATIONALIZE REMAINING SILENT AFTER ALL DIDN'T THEY DESERVE TO LOSE BECAUSE OF THEIR INEFFICIENCY HOWEVER UPON INSTRUCTING OUR STAFF TO INFORM THE PARTIES OF THEIR ERRORS I FOUND THEM EAGER TO DO SO THEY WERE ACTUALLY BURSTING WITH PRIDE WE ALWAYS DID THE MORAL THING OUR HONESTY WAS BENEFICIAL IN SUBTLE WAYS THE INEFFICIENT CUSTOMER REMAINED LOYAL FOR YEARS AND THE VENDOR ATTENDED TO OUR NEEDS AS NEVER BEFORE WE BECAME KNOWN AS A COMPANY WITH INTEGRITY A COMPANY YOU COULD DEPEND ON WE WERE OFTEN TEMPTED TO CHEAT THE CUSTOMER IN A SLYER WAY PAYOLA A PURCHASING AGENT OR A DEPARTMENT HEAD WOULD HAVE HIS HAND OUT ALTHOUGH CASH WAS FREQUENTLY THE FAVOR DEMANDED MORE OFTEN IT WAS A GIFT A CARIBBEAN VACATION A NIGHT ON THE TOWN OR A BEDTIME COMPANION OF COURSE THE CUSTOMER WOULD HAVE ULTIMATELY PAID BECAUSE THE COMPROMISING VENDOR WOULD HAVE BEEN RELIEVED OF THE NEED TO BE COMPETITIVE WE CHOSE NOT TO INDULGE IN THE PRACTICE THIS WAS HARD ON OUR SALESMEN IT KEPT MANY IMPORTANT DOORS CLOSED TO US STILL NONE OF OUR SALESMEN EVER VOICED A COMPLAINT THEY ACCEPTED OUR RULE AS THE WAY WE DID BUSINESS ON ONE OCCASION AT OUR SALESMAN'S REQUEST I AGREED TO GO OVER A CORRUPT PURCHASING AGENT'S HEAD WE MET WITH A VICE PRESIDENT WHO CALLED IN THE PURCHASING AGENT TO CONFRONT HIM WITH OUR ACCUSATION OF COURSE HE DENIED ANY WRONGDOING AND INSISTED WE DIDN'T GET HIS BUSINESS BECAUSE WE WEREN'T COMPETITIVE HE DIDN'T KNOW THAT OUR MOST RECENT QUOTE WAS INTENTIONALLY SET BELOW OUR COST WHEN WE ASKED FOR SPECIFIC COMPARISON FIGURES THE VICE PRESIDENT CAME TO THE PURCHASING AGENT'S RESCUE AND REFUSED TO REVEAL THEM WE LOST CORRUPTION IN A COMPANY OFTEN RUNS DEEPER AND WIDER THAN ONE REALIZES OUR HIGHLY MORAL POLICY HAD A MARVELOUSLY BENEFICIAL EFFECT ON OUR EMPLOYEES SINCE THEY IMPLEMENTED THE POLICY THEY HAD CAUSE TO FEEL PROUD OF THE COMPANY SIMPLY BECAUSE THEY COULD FEEL PROUD OF THEMSELVES IT ADDED TO THE CREATION OF MUTUAL TRUST THROUGH THE YEARS MANY AN EMPLOYEE VISITED MY OFFICE TO LET ME KNOW THAT THEY LIKED WORKING FOR A STRAIGHT COMPANY CHEATING THE GOVERNMENT IS THE MOST EASILY CONDONED DISHONESTY OF ALL AS CEO I OFTEN WRESTLED WITH THIS TEMPTATION ESPECIALLY AFTER AN AUDIT FEDERAL AND STATE TAXES ON CAPITAL GAINS WHICH ARE CONSISTENTLY ERODED BY INFLATION STRUCK ME AS UNFAIR AND THE DOUBLE TAX ON CORPORATE PROFITS WAS DOWNRIGHT CONFISCATORY THUS THE RATIONALE TO CHEAT CAME EASILY I KNEW OF FELLOW BUSINESSMEN WHO HAD SQUIRRELED AWAY FORTUNES IN TAXES THEY NEVER PAID FROM WHAT I COULD TELL THEY HAD GOTTEN AWAY WITH IT WHY DID I COMPLY WITH THE LAW BECAUSE I OWED THE GOVERNMENT AND OUR SYSTEM A MOMENTOUS DEBT WITHOUT THE SMALL BUSINESS ADMINISTRATION I COULDN'T HAVE STARTED IN BUSINESS AND WITHOUT OUR FREE ENTERPRISE SYSTEM I COULDN'T HAVE EVEN THOUGHT OF GOING INTO BUSINESS CHEATING YOUR OWN EMPLOYEES IS I BELIEVE THE MOST REPREHENSIBLE DISHONESTY OF ALL IT MAY TAKE THE FORM OF A LIE OR A DECEPTION THE COMPANY CLAIMS IT CAN'T AFFORD THIS OR THAT WHILE THE CEO DRIVES AROUND IN A TOPOFTHELINE MERCEDES ROOTED IN PURE GREED IT IS THE RAISON D'ETRE FOR UNIONS IT HAPPENS WHEN MANAGEMENT REWARDS ITSELF WHILE REFUSING TO REWARD THE RANK AND FILE TO WHOM IT ALSO OWES ITS SUCCESS BEFORE OUR CLOSELY HELD COMPANY OPENED ITS BOOKS TO OUR EMPLOYEES EVERYONE THOUGHT WE WERE MAKING A KILLING WHEN THEY SAW THAT WE HAD LOSSES AS WELL AS PROFITS THEY UNDERSTOOD HOW HARD IT WAS TO CONSISTENTLY STAY IN THE BLACK REVEALING OUR PROFITS AND LOSSES MEANT THAT WHEN PROFITS WERE GOOD WE'D HAVE TO IN ALL CONSCIENCE SHARE THEM WHEN THEY WERE BAD HOWEVER WE FOUND MUTUAL UNDERSTANDING NO ONE MADE DEMANDS AGAIN MORALE IMPROVED EFFICIENCY INCREASED AND PROFITS OVERALL KEPT CLIMBING DECEPTION AND DISHONESTY IN BUSINESS SURROUND US WE FIND THEM IN THE HALFTRUTHS AND DISTORTIONS OF FACT IN ADVERTISING IN PACKAGE LABELING AND IN MERCHANDISE MARKDOWNS WE FIND THEM IN SHODDY GOODS THAT FAIL WHEN STILL NEW IS THERE ANY WONDER THAT BUSINESS HAS GARNERED A REPUTATION FOR BEING LESS THAN HONEST ALTHOUGH THIS DISHONESTY MAY BE MORE PREVALENT IN AMERICA THAN IN COUNTRIES LIKE JAPAN OR GERMANY THOSE COUNTRIES BASED ON MY EXPERIENCE HAVE THEIR SHARE OF DEVILS TOO RECENTLY I WAS INVITED TO SERVE AS AN ADVISER TO THE LOCAL HIGH SCHOOL CHAPTER OF THE FUTURE BUSINESS LEADERS OF AMERICA DURING AN INSTALLATION CEREMONY OF THEIR OFFICERS THESE YOUNG PEOPLE STOOD AND READ ALOUD THEIR ORGANIZATION'S CREED THE WORDS WERE NOBLE ESPECIALLY I PROMISE TO USE MY ABILITIES TO MAKE THE WORLD A BETTER PLACE FOR EVERYONE THERE'S NO DENYING THAT HONESTY DOESN'T ALWAYS PAY BUT IT SURELY MAKES THE WORLD A BETTER PLACE FOR EVERYONE MR AARON IS A WRITER LIVING IN BELFAST MAINE 9306210147 930621 TREASURY PLANS TO RAISE 250 MILLION IN CASH WITH 52WEEK BILLS WASHINGTON THE TREASURY PLANS TO RAISE 250 MILLION IN NEW CASH WITH THE SALE THURSDAY OF ABOUT 1525 BILLION OF 52WEEK BILLS TO REDEEM 1499 BILLION IN MATURING BILLS THE CUSIP NUMBER FOR THE BILLS IS 912794L44 THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS WILL BE DATED JULY 1 AND WILL MATURE JUNE 30 1994 NONCOMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY NOON EDT THURSDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM 9306210146 930621 TECHNOLOGY & HEALTH INFORMATION AGE ONLINE SHOPPING FAILS TO FULFILL PROMISE BY WILLIAM M BULKELEY NEAL HILL IS THE KIND OF GUY ONLINE SHOPPING WAS MADE FOR THE 41YEAROLD CAMBRIDGE MASS MARKET RESEARCHER IS A SELFDESCRIBED ONLINE JUNKIE HE BUYS 80 OF HIS CLOTHES THROUGH CATALOGS HE LOOKS AT ONLINE MERCHANDISE ALL THE TIME BUT I NEVER BOUGHT A THING ONLINE HE SAYS WHY NOT THE MERCHANDISE WHETHER MERELY DESCRIBED OR PICTURED WITH CRUDE GRAPHICS ISN'T AS ALLURING AS THE GLOSSY PICTURES IN CATALOGS AND IT ISN'T A GREAT DEAL WITH SUCH A DIRECT CONNECTION TO THE VENDOR IT SHOULD BE THE CHEAPEST POSSIBLE PRICE THE PRICES ARE COMPETITIVE BUT THEY AREN'T COMPELLING HE SAYS THE GREAT MAJORITY OF THE NATION'S ESTIMATED FOUR MILLION ONLINE COMMUNICATORS APPEAR TO FEEL THE SAME WAY ONLINE SHOPPING BY COMPUTER IS ONE OF THOSE IDEAS WHOSE TIME HAS NEVER COME AND PERHAPS NEVER WILL SEVEN YEARS AFTER COMPUSERVE INC A UNIT OF H&R BLOCK INC STARTED ITS ELECTRONIC MALL ONLINE SERVICES SELL LESS THAN 100 MILLION OF MERCHANDISE A YEAR THE HOMESHOPPING TELEVISION CHANNELS STARTED AT THE SAME TIME SELL MORE THAN 2 BILLION A YEAR NOW EVEN THE ONLINE SERVICES ARE TRYING TO MOVE INTO THE NEW INTERACTIVETV SHOPPING ARENA A HYBRID OF HOMESHOPPING CHANNELS AND ONLINE SERVICES THAT WILL BE DELIVERED OVER CABLE TV BUT THE FAILURE OF ONLINE SERVICES TO ACHIEVE PREDICTED SUCCESS RAISES QUESTIONS WHETHER INTERACTIVETV IS BEING HYPED ONLINE SHOPPING PROVES ONCE AGAIN THAT THE FACT THAT SOMETHING CAN BE DONE DOESN'T MEAN IT WILL BE DONE ELECTRONIC SHOPPING IS STILL BEING TOUTED AS ONE OF THE GREAT BENEFITS OF GOING ONLINE ONLINE SERVICES ADVERTISE TO TIMESTRAPPED YUPPIES BY PROMISING THEY CAN SIT AT HOME COMPUTERS AND BUY EVERYTHING FROM HIGHTECH TOYS TO FLOWERS AND CANDY THEY HAVE PROMISED ADVERTISERS AN UPSCALE AUDIENCE DESPITE ALL THE EFFORT SHOPPING RESULTS HAVE BEEN MEAGER THERE'S A LOT OF TALK AND PLENTY OF HOOEY SAYS JOSHUA HARRIS PRESIDENT OF JUPITER COMMUNICATIONS CO A NEW YORK MARKETRESEARCH FIRM THAT STUDIES ELECTRONIC RETAILING THEY DON'T HAVE CRITICAL MASS IT ISN'T REALLY EXCITING BUYING ON THE SERVICES NOW THE BIGGEST PROBLEM IS THAT RELATIVELY FEW PEOPLE GO ONLINE AND THOSE WHO DO AREN'T SHOPPERS USERS ARE OVERWHELMINGLY MALE WHILE MOST SHOPPING DOLLARS NATIONALLY ARE SPENT BY WOMEN MANY HOME USERS ARE EITHER STUDENTS OR RETIREES WITH LIMITED DISCRETIONARY INCOME COMPANIES THAT HAVE SOLD GOODS THROUGH ELECTRONIC MALLS SAY THAT FEWER THAN 10 OF THE ONLINE USERS DO ANY SHOPPING ONLINE ANOTHER BIG PROBLEM FOR MOST AMERICAN CONSUMERS SHOPPING IS FUN COMPUTING ISN'T IT'S ON THE COMPUTER SO IT'S WORK NOT LEISURE FOR MOST AMERICANS THERE ARE ONLY A FEW MILLION AMERICANS FOR WHOM COMPUTING ISN'T WORK SAYS GERALD M O'CONNELL GENERAL PARTNER OF MODEM MEDIA INC A WESTPORT CONN AGENCY THAT SPECIALIZES IN INTERACTIVE MARKETING DANIEL BRICKLIN A VETERAN SOFTWARE DEVELOPER IN NEWTON MASS SAYS I'M NOT A VERY ONLINE PERSON I LOG ON AT WORK NOT AT HOME HE ADDS I CAN'T BUY A FLANNEL SHIRT UNLESS I KNOW WHAT IT LOOKS LIKE SOME COMPUTER SHOPPING IS EVEN A LOT OF WORK JONATHAN ROTENBERG A CAMBRIDGE MANAGEMENT CONSULTANT SAYS HE TRIED TO BUY AIRLINE TICKETS ONLINE FIGURING OUT WHAT FLIGHTS WERE AVAILABLE TOOK ME HALF AN HOUR AND IN EVERY CASE THE FARE WAS TWICE AS EXPENSIVE AS MY TRAVEL AGENT FOUND IN A FIVEMINUTE PHONE CALL ONLINE SHOPPING ISN'T A TOTAL DUD CHET THOMPSON VICE PRESIDENT OF ADVERTISING MERCHANDISING AND SALES AT PRODIGY SERVICES CO A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO SAYS SHOPPING STARTED OUT MORE SLOWLY THAN WE HAD PLANNED BUT NOW IT'S GROWING SLIGHTLY FASTER THAN OUR MEMBERSHIP AT COMPUSERVE KEITH ARNOLD GENERAL MANAGER OF THE ELECTRONIC MALL SAYS SALES ROSE 33 LAST YEAR REFLECTING BUYING FROM OVERSEAS SOME ONLINE MERCHANTS ARE THRIVING PC FLOWERS INC OAKTON VA HAS BECOME ONE OF THE NATION'S BIGGEST FLORISTS VIA PRODIGY FLORAL WIRE SERVICE IS A PERFECT MATCH TO THE DEMOGRAPHICS BECAUSE MEN BUY FLOWERS SAYS WILLIAM TOBIN PC FLOWERS' PRESIDENT SOME PEOPLE HAVE BECOME ONLINE SHOPPING ENTHUSIASTS TOO MICHAEL KLATMAN AN INVESTOR RELATIONS DIRECTOR IN LOUISVILLE COLO HAS BOUGHT HIS CREDIT REPORT A CREDIT CARD AND EVEN CONTACT LENSES OVER PRODIGY IT'S EASIER FOR ME TO PUNCH A FEW KEYS ON A KEYBOARD THAN IT IS TO FILL OUT A FORM FOR A CATALOG HE SAYS STILL ONLINE SHOPPING HAS A HISTORY OF DASHED EXPECTATIONS TAKE CUC INTERNATIONAL INC STAMFORD CONN FOUNDED 20 YEARS AGO TO PROMOTE ONLINE SHOPPING AFTER EIGHT OR NINE YEARS WE FOUND THIS WASN'T REALLY HAPPENING SAYS WALTER FORBES FOUNDER AND CHIEF EXECUTIVE OFFICER IN 1980 CUC STARTED MARKETING GUARANTEEDLOWPRICE SHOPPING SERVICES BY 800 NUMBER TO AFFINITY GROUPS SUCH AS CREDITCARD HOLDERS TODAY CUC HAS ANNUAL REVENUE OF 7423 MILLION AND 28 MILLION USERS ONLY 100000 OF THEM ONLINE THE ONLINE SERVICES SAY THEY REMAIN COMMITTED TO THEIR COMPUTERIZED SHOPPING SERVICES BUT THEY'RE WATCHING INTERACTIVE TV WARILY EARLIER THIS MONTH PRODIGY SAID IT'S DEVELOPING ITS OWN INTERACTIVETV SERVICES AND ALSO WILL HANDLE THE ORDERS THAT CUSTOMERS PLACE OVER CABLE TV CUC DEMONSTRATED INTERACTIVETV SHOPPING AT A RECENT CABLE INDUSTRY SHOW AND AN AMERICA ONLINE INC SPOKESWOMAN SAYS IT'S TALKING TO POTENTIAL CABLE PARTNERS THE OPTIMISTS ABOUT INTERACTIVE CABLE ARE COUNTING ON TWO THINGS FIRST THEY ASSUME THAT SYSTEMS WILL BE OPERABLE BY TVTYPE REMOTE CONTROLLERS THAT ARE FAR EASIER TO USE THAN COMPUTERS DOING IT WITHOUT A KEYBOARD IS ESSENTIAL TO GETTING BY THE PSYCHOLOGICAL BARRIER SAYS MR FORBES SECOND THEY FORESEE MORE HOLLYWOODINSPIRED PIZZAZZ MARKET RESEARCH SHOWS THAT CONSUMERS THINK THEY WILL SHOP WITH TVS BUT THAT'S WHAT THEY SAY ABOUT ONLINE SERVICES TOO SHOPPING IS VERY MUCH ON THE MINDS OF MEMBERS WHEN THEY JOIN PRODIGY SAYS MR THOMPSON ONE OF THE LESSONS WE'VE LEARNED IS THAT PEOPLE DON'T ALWAYS DO WHAT THEY SAY THEY'RE GOING TO DO FOR EXAMPLE HE SAYS DESPITE LOTS OF INTEREST PEOPLE WOULDN'T BUY GROCERIES THROUGH PRODIGY PRODIGY'S GROCERY PURCHASE AND DELIVERY SERVICE SEEMED LIKE A NOBRAINER ALL THE MARKET RESEARCH INDICATED CONSUMER INTEREST AN AMERICAN DEMOGRAPHICS MAGAZINE SURVEY IN 1988 FOUND GROCERY SHOPPING THE SECONDLEASTLIKED HOME CHORE BUT PRODIGY FOUND SCANT RESPONSE IN THE AREAS IT OFFERED THE SERVICE WHY PEOPLE LIKE TO GO DOWN THE AISLES OF A GROCERY STORE MR THOMPSON SAYS 9306210145 930621 GERMAN OIL IMPORTS FALL ESCHBORN GERMANY GERMAN CRUDE OIL IMPORTS FELL BY 15 IN MARCH FROM THE YEAR EARLIER AND WERE DOWN 98 IN THE FIRST QUARTER OF 1993 ACCORDING TO THE FEDERAL ECONOMICS OFFICE IN ESCHBORN IN MARCH GERMANY IMPORTED 76 MILLION TONS OF CRUDE DOWN FROM 89 MILLION TONS THE YEAR EARLIER WHILE IN THE FIRST QUARTER IMPORTS STOOD AT 23 MILLION TONS DOWN FROM 255 MILLION TONS A YEAR AGO THE AVERAGE COST OF A TON OF CRUDE IN MARCH WAS 22648 DEUTSCHE MARKS 13652 UP FROM 22410 MARKS A YEAR EARLIER BUT FOR THE FIRST QUARTER PRICES DECLINED TO 22171 MARKS FROM THE YEAREARLIER LEVEL OF 22285 MARKS 9306210144 930621 WORK & FAMILY A SPECIAL REPORT GETTING BY NO OPTIONS POOR SINGLE MOTHERS OFTEN MAKE CHILDCARE TRADEOFFS THEY HATE BUT DO THEY HAVE A CHOICE BY HELENE COOPER ELOISE GARCIA IS A WELFARE STATISTIC WAITING TO HAPPEN NOT THAT THE 25YEAROLD SINGLE MOTHER OF THREE IS ON WELFARE SHE ISN'T IN FACT SHE IS THRILLED WITH HER NEW JOB AS A CLERICAL AND COMPUTER ASSISTANT AT A DALLAS TAX CONSULTANT'S OFFICE HER FIRST DESK JOB EVER BUT CONSIDER MS GARCIA'S 6ANHOUR PAY TRANSLATES INTO 214 A WEEK RENT COSTS 300 A MONTH UTILITY BILLS FOOD AND OTHER ESSENTIALS FOR A FAMILY OF FOUR QUICKLY EAT UP THE REST OF THE MONTHLY TAKE ALL THAT IS MANAGEABLE MS GARCIA SAYS BUT IN A COUPLE OF WEEKS SHE WILL LOSE THE SIXMONTH DAYCARE STIPEND FROM A CHARITABLE AGENCY THAT HAS ALLOWED HER TO TAKE HER THREE CHILDREN TO A CENTER EVERY DAY AND UNLESS MS GARCIA FINDS ANOTHER CHARITY WILLING TO FOOT THE BILL FOR HER CHILDREN'S CARE SHE WILL IN ALL LIKELIHOOD HAVE TO QUIT HER JOB AND HEAD FOR THE WELFARE ROLLS THERE IS NO WAY SHE CAN AFFORD THE 692 MONTHLY CHARGE TO PUT HER THREE CHILDREN IN DAY CARE I'M WILLING TO GO TO THE CHURCH ANYWHERE TO BEG FOR HELP WITH DAY CARE MS GARCIA SAYS TELL ME WHAT TO DO I REALLY LIKE MY JOB I DON'T WANT TO LEAVE I'VE NEVER WORKED IN AN OFFICE BEFORE ASK ANY PUBLIC OFFICIAL FEDERAL STATE OR LOCAL AND THEY WILL TELL YOU THAT THIS SHOULD NOT BE HAPPENING ALL AGREE THAT THE LACK OF AFFORDABLE DAY CARE FOR SINGLE WORKING MOTHERS IS A PROBLEM THAT ERODES ANY EFFORT TO HELP THE POOR BECOME MORE SELFSUFFICIENT AND THAT PILES MORE WOMEN ONTO THE WELFARE ROLLS FOR THESE MOTHERS THE ECONOMIC INCENTIVE NOT TO WORK IS A STRONG ONE A 1991 INTERNATIONAL LADIES GARMENT WORKERS UNION STUDY SHOWED MANY MEMBERS SPENDING 30 OR MORE OF THEIR INCOME ON CHILD CARE GARMENT WORKERS ACCORDING TO THE STUDY EARN AN AVERAGE OF 200 A WEEK YET ALMOST HALF OF THE WORKERS IN THE STUDY PAID MORE THAN 50 A WEEK FOR CHILD CARE AND 13 PAID MORE THAN 100 FOR MANY OF THESE WOMEN GOING ON WELFARE WOULD MEAN A PAY RAISE BUT DESPITE THE ECONOMIC ADVANTAGES MANY POOR MOTHERS REJECT THE WELFARE OPTION THESE WOMEN DON'T WANT THEIR CHILDREN GROWING UP WITH THE WELFARE STIGMA THEY WANT TO PROVE THAT THEY CAN SUCCEED ON THEIR OWN AND THEY LIKE BEING ABLE TO COLLECT THEIR OWN PAYCHECKS AT THE END OF EACH WEEK SO THEY CONTINUE ON CREATING THEIR OWN CRAZY QUILT OF CHILDCARE OPTIONS THEY TAKE THEIR CHILDREN TO THEIR MOTHERS IN THE MORNINGS OR LEAVE THEM WITH CARETAKERS THEY KNOW LITTLE ABOUT IN DIRE CASES THEY LEAVE THE CHILDREN AT HOME ALONE OR TAKE THEM ALONG TO WORK FOR ALL OF THEM THOUGH THE TRAUMAS OF CHILD CARE COLOR THEIR WHOLE LIVES AS THEY STRUGGLE TO STRETCH A TINY PAYCHECK OR SQUEEZE TIME FOR THEIR CHILDREN OUT OF AN UNYIELDING DAY THEIR STORIES ARE OFTEN SIMILAR REVEALING A DAYTODAY EXISTENCE THAT IS USUALLY A FRAGILE STEP AWAY FROM THE PUBLICASSISTANCE ROLLS SABINA PARKS WORKS IRONICALLY FOR A DAYCARE CENTER IN A SUBURB OF ATLANTA SHE PAYS 70 A WEEK 40 OF HER NET INCOME FOR HER ONEYEAROLD SON'S DAY CARE IN A PRIVATE HOME WITH SEVEN OTHER CHILDREN HER EMPLOYER DOESN'T ALLOW WORKERS TO BRING THEIR OWN CHILDREN TO THE DAYCARE CENTER THE SITTER PICKS HIM UP AT 7 AM BUT THE 28YEAROLD MRS PARKS WHO TRAVELS TWO HOURS ON BUSES AND SUBWAYS TO WORK MUST PICK HIM UP AT 630 IN THE EVENING THAT MEANS SHE HAS TO LEAVE WORK ONE HOUR EARLY AT 430TO PICK HIM UP AT 630 A SITUATION THAT'S NOT SITTING WELL WITH HER EMPLOYERS WHO HAVE ASKED HER TO TRY TO FIND A MORECONVENIENT CHILDCARE ARRANGEMENT WORSE FOR MRS PARKS SHE IS WORRIED ABOUT THE CARE HER SON IS GETTING SHE THINKS HE MAY BE WATCHING TV ALL DAY AT THE SITTER'S HOUSE I DON'T REALLY KNOW WHAT MY CHILD DOES ALL DAY SAYS MRS PARKS WHOSE HUSBAND LEFT HER A YEAR AGO THEY NEVER TALK ABOUT PROGRAMS OR WHAT THEY DO THAT SAME SENSE OF CONCERN TINGED WITH RESIGNATION PERMEATES THE LIVES OF MANY OF THESE WOMEN THEY OFTEN FIND THEMSELVES MAKING TRADEOFFS THAT OTHERS MIGHT FROWN UPON BUT WHICH THEY SAY ARE NECESSARY WHEN YOU HAVE RUN OUT OF OPTIONS TAKE FOR INSTANCE THE CASE OF THE SICK CHILD WHEN HER SIXMONTHOLD SON UNDERWENT SURGERY TO REPAIR A HERNIA MILAGRO REYES DID NOT TAKE A DAY OFF FROM WORK EVEN THOUGH JUAN CARLOS WAS CRYING AND SCARED MS REYES 38 YEARS OLD WAS SCARED TOO SCARED THAT SHE WOULD LOSE HER 779ANHOUR FACTORY JOB IN NEW YORK CITY'S GARMENT DISTRICT IN THE PAST WHEN SHE HAD TAKEN OFF FROM WORK TO CARE FOR JUAN CARLOS SHE HAD RECEIVED HARSH WARNINGS ONE OF THEM WRITTEN THAT HER ABSENTEEISM WAS UNACCEPTABLE SO MS REYES RUSHED JUANCARLOS HOME FROM THE HOSPITAL AFTER THE SURGERY THEN VISIBLY UPSET HERSELF SHE LEFT THE BABY WITH HER FAMILY AND RUSHED TO MAKE HER AFTERNOON SHIFT EVEN MORE COMMON CHILDCARE EXPERTS SAY ARE MOTHERS WHO SEND THEIR SICK CHILDREN TO DAYCARE CENTERS BECAUSE THE MOTHERS CAN'T AFFORD TO STAY HOME FROM WORK ONE MOTHER WHO WORKS AS A CLERK FOR THE CITY OF BALTIMORE TOOK HER DAUGHTER TO A DAYCARE CENTER EVEN THOUGH THE CHILD STILL HAD CHICKEN POX I HAD NO OTHER CHOICE SAYS THE MOTHER GAYE BURRELL WHO THEN SPENT NEARLY THE ENTIRE DAY CALLING THE DAYCARE CENTER TO SEE HOW HER DAUGHTER WAS DOING I'M LUCKY I HAVEN'T LOST MY JOB ALREADY AS OFTEN AS I'VE BEEN OUT WHEN SHE'S BEEN SICK I'M JUST HOPING AND PRAYING SHE'S OK TODAY FOR SOME MOTHERS THE TRADEOFF IS EVEN MORE STARK THEY DON'T LIVE WITH THEIR CHILDREN PART OF THE WEEK CONSIDER FAY LUNDBURG A 24YEAROLD MOTEL HOUSEKEEPER IN ROCHESTER MINN MRS LUNDBURG IS ON A TWOYEAR WAITING LIST FOR DAY CARE NEAR HER HOME SINCE FEBRUARY HOWEVER HER ONEYEAROLD SON HAS BEEN LIVING WITH HER MOTHER 40 MINUTES AWAY AND MRS LUNDBURG SEES THE CHILD ONLY ON WEEKENDS WHEN SHE TAKES THE BUS TO VISIT SHE MISSES HER SON TERRIBLY BUT SHE SEES NO OTHER OPTION IF SHE WANTS TO WORK SHE AND HER SON HAVE TO LIVE APART WHEN I WENT TO THE CHILDCARE REFERRAL PLACE TO GET ON THE WAIT LIST THE LADY SAID I'D BE BETTER OFF ON WELFARE MRS LUNDBURG SAYS BUT I DON'T WANT TO GET INTO THAT TRAP MEANWHILE MRS LUNDBURG WHOSE HUSBAND LEFT HER FIVE MONTHS AGO AND PROVIDES NO FINANCIAL SUPPORT EARNS ONLY 680 A MONTH AND SHE HAS GIVEN HER MOTHER AS MUCH AS 500 A MONTH TO TAKE CARE OF HER SON PERHAPS MORE DISTURBING SOME CHILDCARE ADVOCATES SAY IS A DEVELOPING TREND AMONG SOME WOMEN TO CONTINUE LIVING WITH MEN SIMPLY SO THERE WILL BE SOMEONE TO TAKE CARE OF THE CHILDREN IF YOU LOOK AT THE HEADLINES WHERE YOU READ ABOUT KIDS BEING ABUSED OFTEN THE ABUSER IS A BOYFRIEND WHOM THE MOTHER LEFT THE CHILD WITH BECAUSE SHE DIDN'T HAVE ANYONE ELSE TO LOOK AFTER THE CHILD WHILE SHE WORKED SAYS RUTH ANN FOOTE DIRECTOR OF CHILD CARE INC IN ATLANTA A COMMUNITY GROUP THAT HELPS MOTHERS FIND CHILD CARE IT'S MS GARCIA HOWEVER WHO PERHAPS BEST ILLUSTRATES THE HOPE THAT COMES WITH A FULLTIME JOB AND THE DESPAIR THAT COMES FROM UNATTAINABLE CHILD CARE AFTER WORKING FOR SEVEN YEARS AS A CASHIER IN A RESTAURANT MS GARCIA LOST HER JOB WHEN SHE WENT ON MATERNITY LEAVE TO HAVE HER THIRD CHILD LAST YEAR AFTER HAVING THE BABY MS GARCIA SIGNED UP FOR UNEMPLOYMENT COMPENSATION BUT AS SHE WAS LEAVING THE UNEMPLOYMENT OFFICE SHE SPOTTED WHAT LOOKED LIKE A GOLDEN OPPORTUNITY A SIGN ADVERTISING A JOBTRAINING PROGRAM OFFERED BY THE PRIVATE INDUSTRY COUNCIL A LOCAL CHARITABLE ORGANIZATION QUICKLY SHE ENROLLED IT WAS GREAT SAYS MS GARCIA WHO HAS NEVER BEEN MARRIED AND RECEIVES NO SUPPORT FROM HER CHILDRENS' FATHERS THEY SUBSIDIZED MY DAY CARE WHILE I WENT TO SCHOOL THEY TAUGHT ME WORD PROCESSING LOTUS DOS WORDPERFECT FILING TYPING EVERYTHING AFTER HER COURSE WAS OVER MS GARCIA FOUND HER FIRST DESK JOB AT A TAX CONSULTANT'S OFFICE WHERE SHE FILES AND TYPES AND WORKS ON THE COMPUTER I HAVE MY OWN DESK SHE SAYS PROUDLY BUT THE PRIVATE INDUSTRY COUNCIL WILL ONLY SUBSIDIZE HER DAYCARE EXPENSES FOR SIX MONTHS AFTER SHE GETS A JOB AFTER THAT SHE'S ON HER OWN MS GARCIA HAS BEEN MAKING THE ROUNDS TO COMMUNITY AGENCIES STATE OFFICIALS CHURCH GROUPS EVERYONE SHE CAN THINK OF SO FAR NOTHING HER TIME IS RUNNING OUT AND SHE IS BECOMING MORE DESPERATE WITH EACH DAY WHEN SHE WAS WORKING IN THE RESTAURANT SHE MANAGED TO STAY OFF WELFARE BY PAYING A WOMAN 40 A WEEK TO LOOK AFTER THE CHILDREN BUT THAT WOMAN IS NO LONGER AROUND THE WORST PART OF ALL THIS MS GARCIA SAYS IS THAT SHE PROBABLY WOULDN'T HAVE MINDED BEING ON WELFARE WHEN SHE WORKED IN THE RESTAURANT BUT NOW SHE HAS A JOB SHE LIKES A JOB WHERE SHE THINKS SHE HAS A FUTURE THE GOVERNMENT MUST LIKE PAYING FOR LADIES ON WELFARE SHE SAYS MOROSELY BECAUSE THAT'S WHERE IT LOOKS LIKE I'LL END UP BEING MS COOPER IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S ATLANTA BUREAU FAMILY INCOME LEVELS EDUCATION OF YOUNG CHILDREN US DEPARTMENT OF HEALTH AND HUMAN SERVICES AND US DEPARTMENT OF EDUCATION THEY SAID ASSOCIATES PORTLAND ORE 1991 9306210143 930621 WORK & FAMILY A SPECIAL REPORT OPENERS NO EASY ANSWERS AS THE LINE BETWEEN WORK AND HOME BLURS THE OLD RULES NO LONGER APPLY WHAT'S INAPPROPRIATE WHEN IT COMES TO WORK AND FAMILY THAT'S AN INCREASINGLY HARD QUESTION TO ANSWER MORE EMPLOYEES ARE BRINGING FAMILY MATTERS INTO THEIR WORKING LIVES AND MORE BOSSES ARE TRYING TO ACCOMMODATE THEM BUT WHILE THE OLD RULES NO LONGER APPLY THE NEW ONES HAVEN'T YET BEEN WRITTEN THE FOLLOWING QUESTIONS DON'T NECESSARILY HAVE RIGHT OR WRONG ANSWERS FOR EVERYBODY WHO SAYS THE ANSWER IS OBVIOUS THERE IS PROBABLY SOMEBODY ON THE OTHER SIDE WHO FEELS THE ANSWER IS EQUALLY OBVIOUS BUT ONE THING IS CERTAIN AS THE LINE BETWEEN WORK AND FAMILY BLURS HARD QUESTIONS SUCH AS THESE WILL HAVE TO BE ADDRESSED AND CONSENSUS WON'T BE EASY WOULD THE SEX OF THE PARENT MAKE A DIFFERENCE IN YOUR ANSWER WOULD THE SEX OF THE PARENT MAKE A DIFFERENCE IN YOUR PERCEPTION OF THE WORKER DOES IT MAKE A DIFFERENCE WHETHER THE WORKER IS A PROFESSIONAL OR A CLERICAL WORKER IF THE WORKER HAS A PRIVATE OFFICE ARE THE SOUNDS OF CHILDREN PLAYING MORE DISTURBING THAN THE TYPICAL SOUNDS OF AN OFFICE DOES IT CHANGE YOUR OPINION IF HE'S CHECKING IN WITH HIS MOTHER TO MAKE SURE SHE'S OK HOW ABOUT IF HE SPENDS THE SAME AMOUNT OF TIME WITH A FRIEND MAKING PLANS FOR THAT EVENING WHAT IF THE PERSON ISN'T SELLING TO SUBORDINATES BUT TO COLLEAGUES WHAT IF SHE IS PRETTY SURE SHE WON'T RETURN BUT WANTS TO LEAVE OPEN THE POSSIBILITY OF KEEPING HER OLD JOB SHE KNOWS THAT IF SHE SAYS SHE PROBABLY WON'T RETURN HER OLD JOB WILL BE FILLED SHOULD THEY TREAT HER DIFFERENTLY AT ALL WHAT SHOULD SHE SAY IF WHEN SHE IS SIX MONTHS PREGNANT HER BOSS COMES UP TO HER PATS HER STOMACH AND ASKS HOW ARE MY TWO WORKERS TODAY HOW ABOUT IF IT'S AN INFORMAL BUT MANDATORY MEETING ON SATURDAY AT THE BOSS'S HOUSE DOES IT MAKE A DIFFERENCE IF SPOUSES AND CHILDREN ARE INVITED WHAT IF OTHER WORKERS COMPLAIN THAT THEY FEEL INHIBITED USING EVEN MILDLY FOUL LANGUAGE WHEN THE CHILD IS AROUND WHAT IF THE BOSS FEELS INHIBITED IN EVEN MILDLY CORRECTING THE WORKER IN FRONT OF HIS DAUGHTER WHAT IF THREE OTHER PARENTS WANT TO BRING THEIR EQUALLY WELLBEHAVED CHILDREN IN ONCE A WEEK IF IT HAPPENS MORE FREQUENTLY ARE MEN AND WOMEN PERCEIVED DIFFERENTLY WOULD YOUR ANSWER BE THE SAME IF THE WORKER IS A MAN WHOSE WIFE IS PREGNANT OR HOPES TO BE WHAT IF ALL THE CUBICLES IN THE OFFICE ARE VISIBLE TO THE MANY BUSINESS CLIENTS WHO COME INTO THE OFFICE FOR MEETINGS SHOULD THERE BE A SEPARATE RULE FOR WORKERS WHO HAVE PRIVATE OFFICES THAN FOR THOSE WHO WORK IN MORE PUBLIC AREAS HOW ABOUT IF IT'S TWO GAMES A WEEK THREE WHAT IF A CHILDLESS WORKER WANTS TO TAKE OFF AN HOUR EVERY WEEK TO PLAY TENNIS OR GO TO THE MOVIES SHOULD THE PARENTS BENEFIT BECAUSE OF LIFESTYLE CHOICES THEY MAKE WOULD THE ANSWERS BE DIFFERENT IF THE COUPLE GOT MARRIED AFTER THEY WERE WORKING IN THE COMPANY RATHER THAN IF THEY WERE MARRIED WHEN THEY STARTED WORKING 9306210142 930621 TOYOTA NISSAN SAY OVERSEAS PRODUCTION CONTINUES TO SURGE SPECIAL TO THE WALL STREET JOURNAL TOKYO DOMESTIC OPERATIONS FOR TOYOTA MOTOR CORP AND NISSAN MOTOR CO JAPAN'S TWO BIGGEST VEHICLE MAKERS REMAINED SLUGGISH IN MAY BUT OVERSEAS PRODUCTION CONTINUED TO SURGE ACCORDING TO THEIR RESPECTIVE MONTHLY REPORTS ISSUED FRIDAY TOYOTA'S EXPORTS INCREASED SLIGHTLY IN THE MONTH BUT NISSAN WHICH REPORTED THE FASTER GROWTH IN OVERSEAS PRODUCTION REPORTED A FALL IN EXPORTS OVERSEAS PRODUCTION CONTINUES TO INCREASE AS THE YEN'S APPRECIATION SINCE FEBRUARY MAKES EXPORTING VEHICLES MORE EXPENSIVE A TOYOTA SPOKESMAN SAID FOR TOYOTA A NEW PLANT THAT OPENED LAST DECEMBER IN BRITAIN AND ITS PLANT IN GEORGETOWN KY ARE RESPONSIBLE FOR MOST OF THE EXPANDED PRODUCTION HE SAID SALES OF COMMERCIAL VEHICLES REMAIN SLUGGISH BECAUSE OF JAPAN'S PROTRACTED ECONOMIC SLOWDOWN HE ADDED TOYOTA'S 18 RISE IN DOMESTIC PRODUCTION WAS THE SECOND YEARTOYEAR RISE THIS YEAR NISSAN SAID STRONG DEMAND FOR ITS LOCALLY PRODUCED ALTIMA MODEL VEHICLES IN THE US AND INCREASED PRODUCTION OF ITS MICRA MODEL IN BRITAIN WERE BEHIND THE INCREASED OVERSEAS PRODUCTION INCREASED OVERSEAS PRODUCTION IS THE MAIN REASON FOR NISSAN'S DECLINE IN EXPORTS THE COMPANY SAID 9306210141 930621 LAWMAKER WILL ASK REGULATORS TO REVIEW SOROS'S CURRENCY DEALS WASHINGTON HOUSE BANKING COMMITTEE CHAIRMAN HENRY GONZALEZ D TEXAS SAID HE WILL ASK THE FEDERAL RESERVE AND THE SECURITIES AND EXCHANGE COMMISSION TO REVIEW THE FOREIGNEXCHANGE DEALINGS OF GEORGE SOROS'S QUANTUM FUND CITING PRESS ACCOUNTS THAT MR SOROS MADE MORE THAN 1 BILLION BETTING AGAINST THE BRITISH POUND REP GONZALEZ SAID HE'S INTERESTED IN KNOWING HOW MR SOROS WAS ABLE TO MAKE SUCH PROFITS HOW MUCH OF HIS INVESTMENT CAPITAL IS FROM BANK LOANS THE US BANK EXPOSURE TO THE QUANTUM FUND AND THE ROLE PLAYED BY SOCALLED DERIVATIVE SECURITIES PRODUCTS IN THE REPORTED PROFITS THE QUANTUM FUND IS A HUGE OFFSHORE INVESTMENT FUND MANAGED BY MR SOROS IN THE NEAR FUTURE I WILL ASK THE FEDERAL RESERVE AND THE SEC TO REVIEW MR SOROS'S IMPACT ON THE FOREIGNEXCHANGE MARKET TO DETERMINE IF IT IS POSSIBLE FOR AN INDIVIDUAL ACTOR SUCH AS MR SOROS TO MANIPULATE THE FOREIGNEXCHANGE MARKET THE TEXAS DEMOCRAT SAID IN A STATEMENT ON THE HOUSE FLOOR FRIDAY AT A MINUMUM IT IS IN THE BEST INTEREST OF THE FEDERAL RESERVE AND OTHER CENTRAL BANKS TO FULLY UNDERSTAND MR SOROS'S METHODOLOGY FOR MANIPULATING THE FX MARKET REP GONZALEZ SAID AFTER ALL THEY ARE COMPETING HEADON WITH MR SOROS IN AN EFFORT TO MANIPULATE THE VALUE OF VARIOUS CURRENCIES A SPOKESMAN FOR MR SOROS SAID THE FEDERAL RESERVE AND THE TREASURY ARE FULLY FAMILIAR WITH OUR FOREIGNCURRENCY OPERATIONS AND IF THEY HAVE ANY FURTHER QUESTIONS WE WILL ANSWER THEM JUST AS WE HAVE IN THE PAST MR SOROS HAS ABOUT 8 BILLION UNDER MANAGEMENT 9306210140 930621 WHO'S NEWS MAPLE LEAF FOODS INC MAPLE LEAF FOODS INC TORONTO CHARLES BOWEN 51 YEARS OLD RESIGNED AS CHIEF EXECUTIVE OF CANADA'S LARGEST FOODPROCESSING CONCERN TO BECOME CHIEF EXECUTIVE OF BOOKER PLC A LARGER FOOD AND AGRICULTURAL COMPANY IN BRITAIN MAPLE LEAF FOODS SAID DAYTODAY OPERATING RESPONSIBILITIES WILL BE ASSUMED BY BRENT BALLANTYNE 50 CURRENTLY GROUP PRESIDENT AGRIBUSINESS OPERATIONS WHO WAS NAMED CHIEF OPERATING OFFICER DAVID NEWTON 50 DEPUTY CHAIRMAN WILL TAKE ON THE ADDED ROLE OF PRESIDENT IN CHARGE OF STRATEGIC PLANNING A MAPLE LEAF FOODS SPOKESMAN SAID MR BOWEN WISHED TO RETURN HOME TO HIS NATIVE BRITAIN MAPLE LEAF FOODS WHICH IS 56OWNED BY HILLSDOWN HOLDINGS PLC OF BRITAIN DOESN'T PLAN TO FILL THE POSITION OF CHIEF EXECUTIVE FOR THE TIME BEING THE SPOKESMAN SAID 9306210139 930621 RUSSIAN TIMBER OUTLOOK HELSINKI PRODUCTION OF RUSSIAN SAWN TIMBER WILL DROP ABOUT 10 IN 1993 FROM 1992 VALERY SHUBIN CHIEF OF RUSSIA'S FOREST SERVICE SAID AT A 39NATION FOREST PROTECTION CONFERENCE HERE IN 1992 RUSSIA PRODUCED 220 MILLION CUBIC METERS OF SAWN TIMBER MR SHUBIN SAID WE BELIEVE THAT THE DROP WILL BE TO ABOUT 200 MILLION CUBIC METERS THIS YEAR HE ADDED IN 1989 RUSSIA CUT DOWN TREES EQUIVALENT TO 300 MILLION CUBIC METERS OF SAWN TIMBER HE SAID IN COMPARISON WITH WESTERN EUROPE RUSSIA STILL HAS LARGE TRACTS OF PRIMARY FORESTS THAT IT WANTS TO PROTECT WITH NEW LAWS MR SHUBIN SAID 9306210138 930621 BUSINESS BRIEF ROYAL APPLIANCE SAYS IT EXPECTS TO REPORT LOSS FOR 2ND QUARTER ROYAL APPLIANCE MANUFACTURING CO THE ONCE HIGHFLYING MAKER OF DIRT DEVIL VACUUM CLEANERS SAID THAT IT WOULD REPORT ANOTHER SUBSTANTIAL LOSS FOR THE SECOND QUARTER AND THAT IT MAY NOT BE PROFITABLE FOR 1993 AS A WHOLE IN A STATEMENT THE CLEVELANDBASED COMPANY SAID SALES AND EARNINGS FOR THE SECOND HALF WHICH INCLUDES ITS CRITICAL CHRISTMAS SEASON MAY FALL BELOW THOSE REPORTED IN THE 1992 SECOND HALF BLAMING THE SLUGGISH RETAIL ENVIRONMENT AND HEIGHTENED COMPETITION IN THE VACUUM INDUSTRY ROYAL SAID IT'S SUFFERING LOWER SALES AND LOWER PRODUCTION VOLUMES ITS PHILOSOPHY HAS BEEN TO SPEND HEAVILY ON ADVERTISING TO DRIVE SALES ROYAL EXECUTIVES DID NOT RETURN TELEPHONE CALLS FRIDAY THE LATEST BAD NEWS COMES ON THE HEELS OF ROYAL'S FIRST QUARTER LOSS OF 28 CENTS A SHARE THE COMPANY'S STOCK HAS BEEN TUMBLING SINCE LAST JULY IN LATE NEW YORK STOCK EXCHANGE TRADING FRIDAY ROYAL SHARES WERE QUOTED AT 575 DOWN 875 CENTS A SHARE PRIOR TO THE COMPANY'S ANNOUNCEMENT YESTERDAY TWO ANALYSTS WHO FOLLOW THE COMPANY WERE FORECASTING ROYAL WOULD LOSE ABOUT FIVE CENTS A SHARE FOR THE SECOND QUARTER AND REPORT NET INCOME OF 43 CENTS FOR THE YEAR ACCORDING TO FIRST CALL CORP A BOSTON RESEARCH FIRM ROYAL EARNED 202 MILLION OR 81 CENTS A YEAR IN 1992 ON SALES OF 395 MILLION 9306210137 930621 LETTERS TO THE EDITOR CLARENCE THOMAS'S NEW MARTYRDOM' IN RESPONSE TO CLARENCE THOMAS'S MAY 12 RULE OF LAW COLUMN THE NEW INTOLERANCE I AGREE THAT THE OPEN EXCHANGE OF IDEAS IS A GOAL TOWARD WHICH WE SHOULD ALL STRIVE HOWEVER WHAT I FOUND MOST DISTURBING WAS JUSTICE THOMAS'S EQUATION OF AD HOMINEM ASSAULTS ON THE CHARACTER OF NONTRADITIONAL THINKERS WITH THE SOCIALLY SANCTIONED RACIALLY MOTIVATED VIOLENCE AND DISCRIMINATION INFLICTED UPON BLACKS PRE AND POSTCIVIL RIGHTS LEGISLATION TO EQUATE EVEN METAPHORICALLY ALTHOUGH I DON'T BELIEVE HIS LINKAGE WAS METAPHORICAL THESE TWO ISSUES MISTAKENLY GLORIFIES THE FORMER AND DANGEROUSLY BELITTLES THE LATTER SKIN COLOR AND RACIAL IDENTITY ARE TRULY IMMUTABLE BELIEFS ARE NOT THROUGH THE STRUGGLES OF OTHERS MR THOMAS HAS THE LUXURY OF DEVELOPING VIEWS THAT APPEAR IN MANY WAYS SELFCONSCIOUSLY CONSTRUCTED TO SPARK CONTROVERSY AND ENGENDER DRAMA THOSE WHO SUFFERED THROUGH THE OPPRESSION THAT CHARACTERIZES MUCH OF THE LEGACY OF AFRICANAMERICANS IN THIS COUNTRY DID NOT HAVE SUCH A LUXURY NOR THE TIME AND CONCEPTUAL ENERGY TO EVEN APPROACH SUCH A POSSIBILITY HOW ARROGANT AND UTTERLY THANKLESS TO APPROPRIATE THE PERSECUTION THAT THESE PEOPLE EXPERIENCED AS A MODERNDAY EQUIVALENT THAT MANIFESTS ITSELF IN THE PUTATIVE CHARACTER DEFAMATION AGENDA OF THE CULTURAL ELITE A NEW INTOLERANCE AND AN AGENDA AS INVIDIOUS AND PERHAPS MORE PERVASIVE THAN THE INCIVILITY BLACK AMERICANS SUFFERED THROUGHOUT MUCH OF THIS CENTURY MR THOMAS'S CONVENIENT OVERSIGHT OF THE ELEMENTS OF PRIVILEGE THAT ARE CENTRAL TO HIS SELFPROCLAIMED STATUS AS IDEOLOGICAL VICTIM STRIKES ME AS EVIDENT OF AN EQUALLY DEPLORABLE NEW MARTYRDOM WHAT DOES CLARENCE THOMAS WANT HIS VIEWS HOWEVER CONTRARY TO THE NEW ORTHODOXY THAT IS AFFORDED IN HIS CHARACTERIZATION THAT ELUSIVE ALLPURPOSE POWER OF SILENCING ANYTHING IN ITS PATH HAVE MANAGED TO SERVE HIM WELL IN THE PAST 12 YEARS OF REPUBLICAN LEADERSHIP HE HOLDS THE POWER OF JUDGMENT AND THE LAW HE EVEN HAS THE ILLUSTRIOUS ORDINATION OF THE NEW RIGHT IS NOT THE SANCTIONING OF HIS IDEAS AND CHARACTER BY THE POWER ELITE ENOUGH 9306210136 930621 INTERNATIONAL WESTERN OIL CONCERNS CUT AZERBAIJAN STAFF BECAUSE OF WAR FEARS SPECIAL TO THE WALL STREET JOURNAL LONDON WESTERN OIL COMPANIES FEARING CIVIL WAR IN AZERBAIJAN HAVE PULLED OUT ALL BUT SKELETON CREWS FROM THE CAPITAL OF BAKU THE OIL WEEKLY NEFTE COMPASS REPORTED THE COMPANIES INCLUDING BRITISH PETROLEUM CO AMOCO CORP MCDERMOTT INTERNATIONAL INC AND PENNZOIL CO ALL ARE INVOLVED IN PROJECTS TO DEVELOP AZERBAIJAN'S VAST OIL RESERVES IN THE CASPIAN SEA THE WEEKLY SAID THURSDAY ON FRIDAY AZERBAIJAN'S FORMER COMMUNIST BOSS GEIDAR ALIEV TOOK POWER AFTER THE LEGALLY ELECTED PRESIDENT ABULFAZ ELCIBEY WAS DRIVEN FROM OFFICE BY A MILITARY REVOLT 9306210135 930621 GOLD BULLION COINS SELL BRISKLY DROP IN SUPPLY IS SEEN BY ROSANNA TAMBURRI STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA WORLD SALES OF GOLD BULLION COINS THIS YEAR ARE EXPECTED TO REACH THEIR HIGHEST LEVEL SINCE THE BOOM YEAR OF 1987 BULLION ANALYSTS SAID THE US MINT SAID SALES OF ITS AMERICAN EAGLE GOLD COINS TOTALED 274500 OUNCES IN THE FIRST FIVE MONTHS OF THE YEAR UP 125 FROM A YEAR EARLIER THE ROYAL CANADIAN MINT REPORTED A 126 INCREASE TO 187500 OUNCES IN SALES OF ITS CANADIAN MAPLE LEAF COINS IN THE SAME PERIOD IT'S A GOOD CHANGE FROM THE TREND IN THE LAST COUPLE OF YEARS SAID MURRAY CHURCH A CANADIAN MINT SPOKESMAN THE AMERICAN EAGLE REMAINS THE BESTSELLING COIN IN THE US ACCOUNTING FOR ABOUT 75 OF SALES BUT THE CANADIAN MAPLE LEAF ALSO SELLS WELL IN THE US MARKET PARTLY BECAUSE OF ITS PURITY SAID JACK SZCERBAN THE US MINT'S BULLION MANAGER THE MAPLE LEAF IS A 24KARAT SOLID GOLD COIN WHILE THE AMERICAN EAGLE IS A 22KARAT COIN GEORGE HALL EXECUTIVE DIRECTOR OF MONEX INTERNATIONAL A PRECIOUS METALS DEALER IN NEWPORT BEACH CALIF SAID AN ANTICIPATED SUPPLY SHORTFALL HAS PUSHED UP GOLD PRICES RECENTLY THE NEW YORK SPOT PRICE FOR GOLD CLOSED FRIDAY AT 37130 AN OUNCE FOR A 400OUNCE BAR UP FROM 371 THURSDAY AND UP ABOUT 13 SINCE THE BEGINNING OF THE YEAR MOST BULLION COINS TRADE SLIGHTLY ABOVE THE SPOT PRICE MR HALL SAID STRONG BUYING FROM SEVERAL NEW ENTRANTS IN THE GOLD MARKET PARTICULARLY CHINA IS THE MAIN REASON BEHIND THE ANTICIPATED SUPPLY SHORTAGE CHINA HAS BECOME THE WORLD'S BIGGEST BUYER OF GOLD OVERTAKING THE US AT THE SAME TIME THERE HAS BEEN LITTLE INCREASE IN NEW GOLD PRODUCTION HE SAID DAVID ENLOE INTERNATIONAL INVESTMENT MANAGER AT THE WORLD GOLD COUNCIL AN INDUSTRY GROUP SAID LOW INTEREST RATES AND CONCERNS ABOUT GLOBAL DEBT PROBLEMS ALSO HAVE SPURRED SALES OF GOLD COINS MR ENLOE SAID A SURVEY CONDUCTED EARLIER THIS YEAR BY THE WORLD GOLD COUNCIL SHOWED THAT THE INCREASED DEMAND FOR GOLD IN THE US REFLECTED AMONG OTHER THINGS A LACK OF CONFIDENCE IN THE CLINTON ADMINISTRATION AND FEARS OF RENEWED INFLATION PRESSURES ALTHOUGH INFLATION CONCERNS HAVE ABATED RECENTLY BULLION DEMAND IS EXPECTED TO REMAIN STRONG BECAUSE OF POLITICAL AND ECONOMIC TURMOIL IN MANY PARTS OF THE WORLD MR ENLOE SAID IN GERMANY ANOTHER MAJOR MARKET FOR BULLION THE ELIMINATION EARLIER THIS YEAR OF A VALUEADDED TAX ON GOLD HELPED BOOST SALES OF THE AUSTRIAN PHILHARMONIC GOLD COINS MR ENLOE SAID CONCERNS ABOUT THE STABILITY OF THE GERMAN MARK AND POLITICAL TENSIONS IN EUROPE ALSO HAVE PUSHED UP BULLION SALES HE SAID 9306210134 930621 INTERNATIONAL GPA GE CAPITAL WILL SET UP FIRM TO MANAGE PLANES BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL GPA GROUP PLC AND GE CAPITAL CORP WILL SET UP A COMPANY TO MANAGE MARKET AND SUPPORT AN UNDETERMINED PORTION OF GPA'S FLEET OF LEASED AIRCRAFT THE NEW COMPANY WILL BE A SUBSIDIARY OF GE CAPITAL ITSELF A UNIT OF GENERAL ELECTRIC CO STAMFORD CONN EVENTUALLY THE MANAGEMENT COMPANY COULD TAKE OVER THE WHOLE OF GPA'S FLEET AND BE MERGED WITH BOTH GE CAPITAL'S OWN FLEET OF LEASED PLANES AND THE FLEET MANAGED BY GE CAPITAL UNIT POLARIS AIRCRAFT LEASING CORP OFFICIALS FAMILIAR WITH THE DEAL SAY THAT WOULD EFFECTIVELY CREATE AN AIRCRAFT LEASING GIANT DWARFING ANY OTHER SINGLE COMPANY IN THE BUSINESS THE DEAL ANNOUNCED FRIDAY IS PART OF A RESCUE PACKAGE PUT FORWARD MAY 12 BY GE CAPITAL IF COMPLETED THE BAILOUT PLAN WILL SAVE GPA BASED IN SHANNON IRELAND FROM EVENTUAL BANKRUPTCY BOTH REGULATORS AND GPA'S SHAREHOLDERS MUST APPROVE HE DEAL IF THAT IS DONE THE NEW MANAGEMENT COMPANY IS EXPECTED TO GO INTO EFFECT LATE THIS YEAR UNDER THE TERMS OF A MEMORANDUM OF UNDERSTANDING THE MANAGEMENT COMPANY WILL BE RUN PRINCIPALLY BY GPA'S STAFF AND WILL OVERSEE PART OF THE IRISH COMPANY'S FLEET OF LEASED AIRCRAFT AS WELL AS CERTAIN PLANES MANAGED BY GPA FOR OTHERS THE COMPANY ALSO COULD SERVE AS A VEHICLE FOR GPA TO SELL SOME OF ITS ASSETS AND SHORE UP ITS OWN BALANCE SHEET SINCE IT WITHDREW A 1 BILLION PUBLIC SHARE OFFERING LAST JULY GPA HAS SCRAMBLED TO RESTRUCTURE ITS MASSIVE DEBTS AND OUTSTANDING AIRCRAFT ORDERS LAST MONTH THE COMPANY RECEIVED A MAJOR BOOST WHEN GE CAPITAL AGREED TO BUY 45 OF GPA'S PLANES FOR 135 BILLION AND BEGIN TALKS ON ESTABLISHING A COMPANY TO MANAGE SOME OF THE IRISH COMPANY'S ASSETS GPA STILL MUST FIND 150 MILLION IN FRESH EQUITY FROM EXISTING SHAREHOLDERS FOR GE CAPITAL THE MANAGEMENT COMPANY AGREEMENT IS ANOTHER STEP ON THE ROAD TO BECOMING THE WORLD'S DOMINANT PLAYER IN AIRCRAFT LEASING GE CAPITAL ALREADY MANAGES A FLEET OF LEASED AIRCRAFT OF ITS OWN AND IS THE SOLE OWNER OF POLARIS WHICH LEASES MORE THAN 400 PLANES POLARIS'S HUGE FLEET IS PRIMARILY OLDER AIRCRAFT LEASED TO LARGE AIRLINES IN THE US WHILE GPA MANAGES A FLEET OF MORE THAN 480 NEWER AIRCRAFT LEASED PRIMARILY TO SMALL AIRLINES THROUGHOUT THE WORLD GE CAPITAL'S AMBITIOUS PLANS ARE TEMPERED BY THE DESIRE TO PROTECT THE COMPANY'S TRIPLEA DEBT RATING IN FACT THE COMPANY STRESSED THAT IT WILL NOT BE ASSUMING ANY OF GPA'S MASSIVE 55 BILLION DEBTS AS PART OF THE ACCORD 9306210133 930621 INTERNATIONAL WASHINGTON INSIGHT CONCERNS ABOUT NAFTA'S FATE EXTEND TO WOULDBE JOINERS IN LATIN AMERICA BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MEXICANS AREN'T THE ONLY ONES ANXIOUSLY MONITORING THE FATE OF THE NORTH AMERICAN FREE TRADE AGREEMENT WORRIES ABOUT THE EMBATTLED PACT WHICH WOULD EASE ECONOMIC BARRIERS BETWEEN THE US MEXICO AND CANADA RUN ALL THE WAY SOUTH TO TIERRA DEL FUEGO IN 1990 WHEN PRESIDENT BUSH PROPOSED MAKING NAFTA A HEMISPHEREWIDE FREETRADE ZONE LATIN AMERICAN GOVERNMENTS TOOK HIM AT HIS WORD THEY TORE DOWN TRADE BARRIERS AND INTRODUCED INTERNAL ECONOMIC REFORMS IN HOPES OF SPEEDING THEIR ADMISSION TO THE FREETRADE CLUB BUT MR BUSH'S PROPOSAL NEVER GOT BEYOND THE ORIGINAL ANNOUNCEMENT AND WHILE PRESIDENT CLINTON SAYS HE SUPPORTS THE IDEA TOP AIDES PRIVATELY ADMIT THEY AREN'T EVEN SURE THEY CAN GET THE ACCORD WITH MEXICO AND CANADA RATIFIED IF NAFTA IS REJECTED BY THE CONGRESS OR NEVER GOES BEYOND MEXICO'S SOUTHERN BORDER A BACKLASH AGAINST BOTH ECONOMIC REFORM AND THE US COULD BE FELT THROUGHOUT THE HEMISPHERE THE BLOW WOULD BE ESPECIALLY PAINFUL AT A TIME WHEN THE US IS SLASHING FOREIGN AID TO THE REGION TO OFFSET THE COSTS OF NEW SUPPORT FOR THE FORMER SOVIET UNION THE PROMISE OF NAFTA DIDN'T BEGIN THE TREND TOWARD MARKET LIBERALIZATION IN LATIN AMERICA BUT IT DID REINFORCE AND DEEPEN THE PROCESS ANALYSTS SAY NAFTA IS CREDITED WITH REVIVING AND EXTENDING MANY REGIONAL TRADING BLOCS FROM THE ANDEAN PACT AND CENTRAL AMERICAN COMMON MARKET TO SOUTH AMERICA'S MERCOSUR THE BUSH ADMINISTRATION SUGGESTED THAT THE LATIN STATES STRENGTHEN SUCH BLOCS AS A STEP TOWARD JOINING THE NAFTA COUNTRIES IN A FREETRADE PACT THE REWARDS OF REFORM ARE CLEAR WHEN COLOMBIA AND VENEZUELA TORE DOWN THEIR BILATERAL TARIFFS LAST YEAR TRADE BETWEEN THEM SOARED 60 US EXPORTS TO CENTRAL AND SOUTH AMERICA MEANWHILE ROSE 21 IN 1992 AS TRADE BARRIERS TUMBLED GIVING THIS COUNTRY A 32 BILLION TRADE SURPLUS WITH THE REGION US OFFICIALS SAY THEY UNDERSTAND THE STAKES ONE SENIOR OFFICIAL SAYS THE PROMISE OF ACCESS TO THE US MARKET IS ALREADY A KEY FOREIGN POLICY TOOL FOR THE US IN LATIN AMERICA WHEN COUP RUMORS HIT GUATEMALA A FEW WEEKS AGO HE NOTES IT WASN'T A THREAT OF WORLD CENSURE OR EVEN OF SENDING IN THE MARINES THAT RESCUED DEMOCRACY WHAT TURNED THE MILITARY AND ITS BIG BUSINESS BACKERS THERE AROUND WAS THE PROSPECT OF LOSING SPECIAL TRADE PREFERENCES WITH THE US IT WAS THE MOST POTENT THREAT WE COULD THINK OF AND IT WORKED THE OFFICIAL SAYS AFTER SHYING AWAY FROM THE ISSUE FOR MONTHS PRESIDENT CLINTON AND HIS CABINET ARE LOBBYING PUBLICLY FOR NAFTA AND AT A NEWS CONFERENCE LAST WEEK MR CLINTON ADDED VENEZUELA AND ARGENTINA TO THE LIST OF CANDIDATES LIKELY TO JOIN THE NORTH AMERICAN FREETRADE BLOC CHILE HAS ALREADY BEEN PROMISED THE NEXT SLOT STILL US OFFICIALS ADMIT THAT WITH THE FATE OF NAFTA STILL IN SUCH DOUBT THEY HAVE DONE LITTLE PLANNING FOR WHAT COMES NEXT AMONG FUNDAMENTAL QUESTIONS YET TO BE ADDRESSED THE CLINTON ADMINISTRATION MUST DECIDE WHAT IF ANY POLITICAL CRITERIA WILL BE APPLIED TO POTENTIAL CANDIDATES WILL ENTIRE TRADING BLOCS BE ADMITTED AS PRESIDENT BUSH SUGGESTED OR WILL INVITATIONS BE ISSUED ON A COUNTRYBYCOUNTRY BASIS AS MR CLINTON'S RECENT REMARKS SUGGEST PERHAPS MOST IMPORTANT THE ADMINISTRATION WILL HAVE TO DECIDE WHETHER TO CONTINUE TO FOCUS ITS FREETRADE ATTENTIONS ON LATIN AMERICA OR AS SOME TRADE OFFICIALS URGE SEEK OUT POTENTIALLY MORE LUCRATIVE PASTURES IN ASIA THE PENDING AGREEMENT SPECIFIES THE PROCEDURES FOR ADMITTING ADDITIONAL COUNTRIES TO NAFTA BUT DOESN'T RESTRICT ITSELF OR EVEN COMMIT ITSELF TO LATIN AMERICA FOR NOW THE ADMINISTRATION HAS POSTPONED ALL THOSE DECISIONS UNTIL AFTER THE NAFTA VOTE WHICH MAY NOT COME UNTIL FALL WHAT IT DOES AFTER THAT WILL DEPEND NOT JUST ON WHETHER NAFTA PASSES BUT HOW EASILY IF IT'S A TOUGH FIGHT I CAN'T SEE THIS ADMINISTRATION TAKING IT ANY FURTHER SAYS PETER HAKIM PRESIDENT OF THE INTERAMERICAN DIALOGUE A RESEARCH AND POLICY ADVOCACY GROUP IN WASHINGTON LATIN AMERICANS WOULD SEE IT AS A REJECTION AND AS HYPOCRITICAL IT WOULD BE A REAL SETBACK FOR THE US HE SAYS 9306210131 930621 TYSON CHICKEN SLAUGHTERHOUSE ROGERS ARK TYSON FOODS INC SAID IT WILL CONVERT A CHICKEN SLAUGHTERHOUSE HERE TO A PROCESSING PLANT BECAUSE IT COULDN'T SOLVE A FOUL ODOR PROBLEM THE FOOD COMPANY SAID THE PLANT WHERE THE SLAUGHTER OF MORE THAN TWO MILLION CHICKENS A MONTH PROMPTED ODOR COMPLAINTS FROM NEARBY RESIDENTS WILL BE CONVERTED BY THE FALL WITHOUT LAYOFFS A TYSON SPOKESMAN SAID THAT THE CONVERSION WILL BE RELATIVELY INEXPENSIVE BUT THAT THE COMPANY HASN'T DECIDED WHERE TO RELOCATE THE SLAUGHTERHOUSE 9306210130 930621 MOTOROLA SIGNS LETTER WITH TAIWAN MINISTRY FOR SATELLITE PROJECT SPECIAL TO THE WALL STREET JOURNAL TAIPEI TAIWAN THE ECONOMICS MINISTRY AND MOTOROLA INC HAVE SIGNED A LETTER OF INTENT TO PARTICIPATE IN A 4 BILLION SATELLITE COMMUNICATION PROJECT OFFICIALS SAID FRIDAY THE AGREEMENT WAS SIGNED BY VICE ECONOMICS MINISTER YANG SHIHCHIEN AND GEORGE FISHER CHAIRMAN OF MOTOROLA THURSDAY NIGHT UNDER THE PROJECT PROPOSED BY MOTOROLA A PRIVATE TAIWANESE FIRM WOULD JOIN ABOUT 20 COUNTRIES IN THE IRIDIUM PROJECT WHICH HOPES TO LAUNCH 66 SATELLITES BETWEEN 1993 AND 1998 TO FORM A GLOBAL SATELLITE MOBILE COMMUNICATIONS SYSTEM FOR MOBILE TELEPHONE AND PERSONAL COMPUTER COMMUNICATIONS THE TAIWANESE FIRM IDENTIFIED AS PACIFIC ELECTRIC WIRE & CABLE WOULD INITIALLY INVEST 80 MILLION TO PRODUCE ROCKETS SATELLITE AND OTHER RELATED COMMUNICATIONS EQUIPMENT OFFICIALS SAID MEANWHILE MOTOROLA BASED IN SCHAUMBURG ILL AGREED TO EXPAND ITS INVESTMENT IN TAIWAN MOTOROLA ESTABLISHED A TAIWAN OPERATION EIGHT YEARS AGO TO PRODUCE SEMICONDUCTORS AND ELECTRONIC PARTS FOR RADIO COMMUNICATION THE TAIWAN OPERATION WHICH HAS MORE THAN 2600 EMPLOYEES IS THE LARGEST RADIO COMMUNICATION ELECTRONICS MANUFACTURER ON THE ISLAND 9306210129 930621 WHO'S NEWS REPLIGEN CORP REPLIGEN CORP CAMBRIDGE MASS JAMES C LEUNG WAS NAMED TO THE NEW POST OF VICE PRESIDENT PROCESS DEVELOPMENT AT THIS BIOTECHNOLOGY CONCERN MR LEUNG WAS FORMERLY ASSOCIATE DIRECTOR OF FERMENTATION OPERATIONS AT GENENTECH INC 9306210128 930621 POLITICS & POLICY HUD IS FACING HUGE POTENTIAL HOUSING LOSSES BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL HOUSING OFFICIALS SAID THEY ARE TRYING TO STEM POTENTIALLY MASSIVE LOSSES THAT COULD RESULT FROM A SHARP INCREASE IN APARTMENTBUILDING OWNERS WHO DEFAULT ON GOVERNMENTINSURED MORTGAGES HOUSING AND URBAN DEVELOPMENT SECRETARY HENRY CISNEROS SAID THE PROBLEM WHICH AGENCY OFFICIALS RECENTLY FOUND TO BE MUCH WORSE THAN ESTIMATED IS HIS HIGHEST PRIORITY IN A STATEMENT MR CISNEROS SAID HE IS WORKING ON VARIOUS LEGISLATIVE AND ADMINISTRATIVE INITIATIVES TO STEM THE LOSSES OF CONCERN ARE THE MULTIFAMILY INSURANCE PROGRAMS RUN BY THE FEDERAL HOUSING ADMINISTRATION WHICH IS PART OF HUD UNDER THE PROGRAMS THE GOVERNMENT INSURES MORTGAGES FOR PROJECTS THAT MIGHT OTHERWISE NOT BE BUILT BECAUSE LENDERS CONSIDER THEM TOO RISKY CURRENTLY THE FHA INSURES ABOUT 43 BILLION IN MORTGAGES ON MULTIFAMILY DWELLINGS WHICH INCLUDE HOSPITALS AND NURSING HOMES AS WELL AS APARTMENT BUILDINGS IN A RECENT REPORT THE ACCOUNTING FIRM COOPERS & LYBRAND CONCLUDED THAT 27 OF THE PROPERTIES ARE AT RISK OF DEFAULTING BASED ON THAT ANOTHER ACCOUNTING FIRM PRICE WATERHOUSE & CO ESTIMATED 119 BILLION IN POTENTIAL LOSSES THE REPORTS WERE DISCLOSED OVER THE WEEKEND BY THE WASHINGTON POST AND THE NEW YORK TIMES HOUSING OFFICIALS DIDN'T DISPUTE THE ESTIMATES AND THEY ACKNOWLEDGED THAT THEY EXPECTED SOME DEFAULTS TO OCCUR BUT THEY EMPHASIZED THAT THEY WERE DEVISING STRATEGIES TO KEEP THE LOSSES AT A MINIMUM ULTIMATELY THE COST OF ANY DEFAULTS WOULD BE PAID FOR MOSTLY THROUGH CONGRESSIONAL APPROPRIATIONS WITH A SMALL PART PAID BY RESERVES IN THE FHA INSURANCE FUND MR CISNEROS SAID THAT THE POTENTIAL OF MASSIVE LOSSES IN THE MULTIFAMILY PROGRAMS IS THE SINGLE LARGEST PROBLEM I'VE INHERITED WHILE HE SAID THE SHARP RISE IN DEFAULTS REFLECTS THE WEAK ECONOMY HE ALSO CRITICIZED PREVIOUS ADMINISTRATIONS FOR FAILING TO ACCURATELY PREDICT THE MAGNITUDE OF THIS PROBLEM HOUSING OFFICIALS SAID THE ADMINISTRATION PLANS TO PROPOSE LEGISLATION SOON THAT WOULD MAKE IT EASIER FOR HUD TO SELL PROPERTIES ACQUIRED THROUGH LOAN DEFAULTS UNDER CURRENT LAW WHEN HUD SELLS A PROPERTY WHERE THE RENT IS SUBSIDIZED FOR POOR TENANTS THOSE SUBSIDIES MUST CONTINUE FOR 15 YEARS THE DEPARTMENT DOESN'T HAVE SUFFICIENT MONEY IN ITS BUDGET TO PROVIDE THE SUBSIDIES HOWEVER SO IT SIMPLY HOLDS ONTO THE COMPLEXES WHICH OFTEN DETERIORATE ONE OPTION SAID NICOLAS RETSINAS THE FHA COMMISSIONER WOULD BE TO SHORTEN THE SUBSIDY TERM TO FIVE YEARS UNDER THE CURRENT PROGRAM A LENDER MAY HAND BACK A MORTGAGE TO HUD AND RECEIVE FULL REIMBURSEMENT WHEN MORTGAGE PAYMENTS FROM DEVELOPERS ARE LATE AS A RESULT OF THIS PROCESS HUD HOLDS THE MORTGAGES FOR ABOUT 2400 PROPERTIES ACROSS THE COUNTRY HUD IS MOVING TO FORECLOSE ON AND SELL ABOUT 440 OF THOSE PROPERTIES BUT OFFICIALS SAID THAT THE PROCESS OF DISPOSING OF THE PROPERTY MUST BE SPEEDED UP CONSIDERABLY 9306210127 930621 SEARS TO SPIN OFF REST OF STAKE IN DEAN WITTER BY CHRISTINA DUFF STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SEARS ROEBUCK & CO SAID IT WILL SPIN OFF TO SHAREHOLDERS ITS REMAINING 80 STAKE IN DEAN WITTER DISCOVER & CO JUNE 30 COMPLETING A KEY PART OF THE FINANCIALSERVICES DIVESTITURE PLAN THE RETAILER ANNOUNCED LAST FALL SEARS HOLDERS OF RECORD JUNE 28 WILL RECEIVE FOR EACH OF THEIR SHARES 04 SHARE OF DEAN WITTER COMMON THE TAXFREE DISTRIBUTION WILL PUT 1362 MILLION SHARES OF THE BROKERAGE COMPANY CURRENTLY VALUED AT 465 BILLION INTO THE HANDS OF SEARS HOLDERS AND IT WILL ESTABLISH DEAN WITTER ONE OF THE NATION'S LARGEST BROKERS AND A SIGNIFICANT PLAYER IN THE CREDITCARD INDUSTRY AS AN INDEPENDENT COMPANY WITH THE SPINOFF SEARS WILL HAVE EXCEEDED ITS OWN TIMETABLE FOR DISPOSING OF ITS FINANCIALSERVICES UNITS AS PART OF A SWEEPING PLAN ANNOUNCED IN SEPTEMBER TO FOCUS ON ITS CORE RETAIL OPERATION THE MOVES LONG CALLED FOR BY SHAREHOLDERS WORRIED ABOUT SEARS' LAGGARD STOCK PRICE WEREN'T EXPECTED TO BE COMPLETED UNTIL YEAR END WE WERE SITTING AROUND TODAY TALKING ABOUT HOW AMAZED WE WERE THAT EVERYTHING'S COME TOGETHER SO QUICKLY SAID EDWARD A BRENNAN SEARS CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN AN INTERVIEW SEARS ALREADY HAD SOLD A 20 STAKE IN DEAN WITTER IN FEBRUARY AND MARCH THROUGH A 9059 MILLION INITIAL PUBLIC OFFERING THE STOCK HAS FARED WELL AS ANALYSTS TOUT THEIR PROJECTIONS THAT THE COMPANY WILL POST 15 ANNUAL PROFIT GAINS DURING THE NEXT FIVE YEARS BASED PARTLY ON POSITIVE INDUSTRY TRENDS ORIGINALLY SOLD AT 27 EACH DEAN WITTER STOCK CLOSED FRIDAY AT 34125 DOWN 1 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE SEARS SHARES ALSO LISTED ON THE BIG BOARD CLOSED FRIDAY AT 5375 UP 625 CENTS ALSO AS PART OF THE REPOSITIONING SEARS SOLD THIS MONTH ABOUT 20 OF ITS ALLSTATE CORP INSURANCE UNIT IN A 212 BILLION INITIAL PUBLIC OFFERING AMONG THE LARGEST BY A US COMPANY AND IN MAY SEARS AGREED TO SELL THE RESIDENTIAL PORTION OF ITS COLDWELL BANKER UNIT TO FREMONT GROUP A SAN FRANCISCO INVESTMENT COMPANY THE PRICE WASN'T DISCLOSED SEARS ALSO AGREED TO SELL COLDWELL'S SEARS MORTGAGE GROUP TO PNC BANK CORP FOR 328 MILLION 9306210126 930621 LETTERS TO THE EDITOR CFCS DEBATE REFLECTS THE POLITICS OF CRISIS IN REGARD TO YOUR MAY 10 ARTICLE AIRCONDITIONER FIRMS PUT CHILL ON PLANS TO PHASE OUT USE OF CHLOROFLUOROCARBONS THE CFC/OZONE DEBATE CONTINUES AS YET ANOTHER EXAMPLE OF THE GOVERNMENT'S NEED FOR CRISES THE ISSUE IS OF A POLITICAL NATURE WITH LITTLE SCIENTIFIC OR ECONOMIC BASIS IT RANKS ALONGSIDE GLOBAL WARMING THE AIDS CRISIS THE BIG ONE EARTHQUAKE NUCLEAR RADIATION AND THE POPULATION EXPLOSION AS THE LATEST EXCUSE FOR POLITICAL INTERVENTION THE SCIENTIFIC COMMUNITY HAS USED SYSTEMS ANALYSIS AS AN INTEGRAL PART OF THE DESIGN OF ALMOST EVERY AIRCRAFT MISSILE AUTOMOBILE OR POWER PLANT SYSTEM FOR MANY YEARS ECONOMISTS USE COST BENEFIT ANALYSIS TO EXAMINE THE EFFECT OF ANY PROPOSED BUSINESS CHANGE A RECENTLY PUBLISHED BOOK BY PLENUM THE HEAVENS ARE FALLING ADDRESSES EACH OF THESE CRISES ITS AUTHOR PROF WALTER KARPLUS OF UCLA IS RESPECTED WORLDWIDE FOR HIS WORK IN COMPUTER ANALYSIS HE QUESTIONS WHETHER THE BENEFITS OF REPLACEMENT OF CFC WHICH HAS BEEN SAFELY USED FOR MORE THAN 50 YEARS IS WORTH THE MULTIBILLIONDOLLAR COST HIS CONCERN IS GRAPHICALLY ILLUSTRATED BY THIS EXCERPT FROM HIS BOOK THE MAJOR APPLICATION OF CFCS IS AS A COOLANT IN REFRIGERATORS AND THIS IS ALSO A GREAT PROBLEM OVER 40 BY VOLUME OF THE CFCS USED IN THE UNITED STATES SERVE THIS PURPOSE IN THE DEVELOPING COUNTRIES REFRIGERATORS IN MOST HOUSEHOLDS ARE CONSIDERED A SIGNIFICANT COMPONENT OF AN IMPROVED STANDARD OF LIVING A DECREASE IN THE NUMBER REFRIGERATORS IN THE DEVELOPING COUNTRIES AND A SLOWDOWN IN THE INTRODUCTION OF REFRIGERATION ELSEWHERE IS LIKELY TO RESULT IN SEVERE INCREASES OF HEALTH PROBLEMS AND FATALITIES DUE TO FOOD SPOILAGE FOOD POISONING AND EVEN FAMINES YOUR ARTICLE MISREPRESENTS MY POSITION AND THAT OF EPA EPA DID NOT LOWER THE ACCEPTABLE EXPOSURE LEVEL OF HCFC123 TO 10 PARTS PER MILLION EXPOSURE LIMIT WAS LOWERED BY CHEMICAL MANUFACTURERS WHO MAKE HCFC123 THE HCFC123 IS AN ACCEPTABLE ALTERNATIVE AND WITH CAREFUL REFRIGERANT MANAGEMENT POSES LITTLE THREAT TO THE ENVIRONMENT BECAUSE NEW CHILLERS CAN BE SIGNIFICANTLY MORE EFFICIENT THAN EXISTING SYSTEMS MANY COMPANIES CAN ACTUALLY PROFIT BY REPLACING THESE CHILLERS SOONER RATHER THAN LATER EPA ENCOURAGES ALL PARTIES TO FOCUS ON FACTS AND TO RETROFIT OR REPLACE THEIR CHILLERS IN A TIMELY FASHION WITH THE SAFE ALTERNATIVES NOW AVAILABLE 9306210125 930621 UNILEVER UNIT'S KOREAN PLANS RANCHO DOMINGUEZ CALIF ABLESTIK LABORATORIES A UNIT OF UNILEVER NV PLANS TO SET UP A SUBSIDIARY IN KOREA ABLESTIK WHICH MAKES ADHESIVES AND OTHER PRODUCTS FOR ELECTRONIC APPLICATIONS SAID IT PLANS TO OPEN A TECHNICAL SERVICE CENTER IN KOREA THIS YEAR AND A MANUFACTURING FACILITY NEXT YEAR 9306210124 930621 BELGIUM'S ROYALE BELGE TO ACQUIRE SKANDIA'S 992 L'ARDENNE STAKE SPECIAL TO THE WALL STREET JOURNAL BRUSSELS BELGIAN INSURER ROYALE BELGE SA SAID FRIDAY IT WILL ACQUIRE 992 OF THE SHARES OF INSURER L'ARDENNE PREVOYANTESKANDIA BELGIUM SA FROM SWEDEN'S SKANDIA GROUP INSURANCE CO ROYALE BELGE SAID THAT IN KEEPING WITH BELGIAN TAKEOVER LAW IT WOULD BID FOR THE REMAINDER OF THE SHARES WHICH ARE OWNED BY THE PUBLIC AT THE SAME PRICE PAID FOR THE SKANDIA SHARES THE BID FOR THE SHARES WILL BE IN SEPTEMBER AT THE EARLIEST ROYALE BELGE SAID FURTHER DETAILS OF THE TAKEOVER WEREN'T IMMEDIATELY AVAILABLE L'ARDENNE PREVOYANTE HAD PREMIUM VOLUMES OF 737 MILLION BELGIAN FRANCS 216 MILLION IN 1992 L'ARDENNE PREVOYANTE OFFERS MAINLY VEHICLE AND FIRE INSURANCE SKANDIA HAS OWNED THE BELGIAN UNIT FOR 60 YEARS BUT AGREED TO SELL IT AS PART OF A STRATEGIC RECENTERING ON SCANDINAVIAN MARKETS THE STATEMENT SAID THE SALE WILL HAVE ONLY A MARGINAL EFFECT ON SKANDIA'S RESULTS AND BALANCE SHEET TOTAL THE SWEDISH GROUP SAID MEANWHILE ROYALE BELGE SAID THE TAKEOVER WOULD REINFORCE ITS PRESENCE IN THE ARDENNES REGION AND IN THE GERMANSPEAKING PART OF BELGIUM 9306210123 930621 ECONOMY INDUSTRIES STRUGGLE AS PRICES REMAIN STEADY OR DECLINE QUANDARY UNDERLINES REPORTS SHOWING INFLATION IN CHECK LITTLE HOPE OF RESPITE SEEN BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MANUFACTURERS IN INDUSTRIES FROM PLASTICS TO TIRES ARE GRAPPLING WITH FLAT AND DECLINING PRICES UNDERSCORING THE LATEST GOVERNMENT REPORTS INDICATING THAT INFLATION IS UNDER CONTROL IT IS TRUE THAT SOME COMPANIES HAVE BOOSTED PRICES AFTER YEARS OF FLAT AND DECLINING REAL PRICES FOR EXAMPLE RELIEVED STEELMAKERS RAISED PRICES ABOUT 15 THIS YEAR THANKS TO FOREIGN STEELMAKERS RETRENCHING FROM THE US IN THE FACE OF TRADE LITIGATION AND US AUTOMOBILE MAKERS HAVE GLADLY HIKED PRICES TO MIRROR JAPANESE COMPETITORS WHO HAD LITTLE CHOICE GIVEN THE RISING YEN BUT COMPETITION IN MANY CASES IS KEEPING PRICES IN CHECK ESPECIALLY AS PRODUCERS IN DEPRESSED EUROPEAN COUNTRIES CROWD US MARKETS OVERCAPACITY ALSO HAS DULLED PRICES AND THERE'S LITTLE HOPE FOR PENDING RESPITE GIVEN THE SLUGGISH ECONOMY THE ECONOMY WILL BE IN A SLOWGROWTH MODE FOR A COUPLE OF YEARS SAYS CONWAY G IVY VICE PRESIDENT OF CORPORATE PLANNING AND DEVELOPMENT FOR CLEVELAND PAINTMAKER SHERWINWILLIAMS CO WE'RE NOT GOING TO LOOK FOR PRICE INCREASES TO BAIL US OUT SO MANUFACTURERS ARE LOOKING FOR NEW WAYS INCLUDING BOOSTING PRODUCTIVITY TO IMPROVE PROFITABILITY THE MOST RECENT GOVERNMENT REPORTS BACK THIS UP WHOLESALE PRICES IN 1993'S FIRST FIVE MONTHS CLIMBED AT AN ANNUAL RATE OF 37 WELL BELOW THE 47 THROUGH APRIL ACCORDING TO THE LABOR DEPARTMENT THE CONSUMER PRICE INDEX ROSE 38 THROUGH MAY DOWN FROM 43 IN THE YEAR'S FIRST FOUR MONTHS WORLD COMPETITION AND SLOW GROWTH HAVE PREVENTED MANUFACTURERS ACROSS THE BOARD FROM RAISING PRICES SAYS JERRY JASINOWSKI PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS IT'S NOT THAT THEY DON'T WANT IT FAILING OUTRIGHT PRICE INCREASES MANY MANUFACTURERS ARE TURNING TO INDIRECT METHODS CHARGING CUSTOMERS EXTRA FOR RELATED SERVICES THAT WERE ONCE INCLUDED IN THE PRODUCT PRICE GENCORP INC A FAIRLAWN OHIO MAKER OF REINFORCED PLASTICS COATED FABRICS AND INDUSTRIAL RUBBER PRODUCTS IN SOME CASES IS ABLE TO GET CUSTOMERS TO PAY RESEARCH AND DEVELOPMENT COSTS UNDER AGREEMENTS SEPARATE FROM THOSE COVERING PRODUCT PRICE YOU REALLY HAVE TO WORK HARD TO MAKE SURE THAT YOU'RE ABLE TO RECOVER THOSE COSTS SAYS MARVIN L ISLES PRESIDENT OF THE COMPANY'S AUTOMOTIVE DIVISION YET EVEN THESE INDIRECT PRICE INCREASES DON'T ALWAYS WORK TIRE MAKERS OFTEN DEMAND THAT HIGHPRICED TIRES MAKE UP A PERCENTAGE OF DEALERS' ORDERS BOOSTING THE OVERALL COST BUT IF YOU GIVE THEM A REAL LIVE ORDER THEY'LL SHIP IT REGARDLESS OF THE PERCENTAGE OF HIGHPRICED TIRES SAYS SAM FORBES PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PEERLESS TYRE CO A DENVERBASED CHAIN OF 47 TIRE STORES WANTING IT AND GETTING IT ARE TWO DIFFERENT THINGS SAYS KENNETH T MAYLAND CHIEF ECONOMIST AT CLEVELANDBASED SOCIETY CORP A BANK HOLDING COMPANY ARE THE ECONOMIC CIRCUMSTANCES SUCH THAT COMPANIES WILL BE SUCCESSFUL AT GETTING PRICE INCREASES TO STICK IN A WORD NO SAYS DR MAYLAND ECONOMIC GROWTH REMAINS SLUGGISH AND THE NATION'S MONEY SUPPLY A KEY FACTOR IN INFLATION'S ABILITY TO GATHER STEAM IS TIGHT PERHAPS MORE IMPORTANT SEVERAL FUNDAMENTAL MARKET FACTORS ARE RESTRICTING MANUFACTURERS' ABILITY TO INCREASE PRICES THAT'S TRUE EVEN IN MARKETS THAT SEEM TO BE IMPROVING TAKE HOUSING ALTHOUGH EXISTING HOME SALES SHERWINWILLIAMS' MAJOR MARKET ARE CLIMBING PRICES ON HOUSEHOLD PAINTS ARE FLAT SAYS MR IVY WITH LITTLE GROWTH IN THE PAINT MARKET PRODUCERS' PRIMARY CARROT TO GAIN OR MAINTAIN MARKET IS LOWER PRICES SO WHILE SHERWINWILLIAMS AND MANY CONSUMERS CONSIDER IT A PREMIUM BRAND THE COMPANY CAN'T CHARGE PREMIUM PRICES IN FACT WHEN THE COMPANY REALIZED IT WAS CHARGING MORE THAN COMPETITORS FOR PAINT BRUSHES AND OTHER ACCESSORIES WHICH CONSTITUTE ONLY A SMALL PERCENTAGE OF ITS STORES' 17 BILLION IN SALES IT SLASHED THOSE PRICES IN MARCH AND BEGAN TOUTING THE CUTS IN ADVERTISING CIRCULARS HIGHER PRICES ON PAINT BRUSHES BUILD A PERCEPTION IN CONSUMERS' MINDS THAT THE COMPANY IS CHARGING MORE FOR ALL ITS PRODUCTS MR IVY SAYS MANUFACTURERS ALSO ARE FACING PRICING RESISTANCE FROM LOYAL CUSTOMERS WHO TRADITIONALLY ACCEPTED HIKES AS AN ANNUAL RITE ADOPTING A METHOD OF THE BIG THREE AUTO MAKERS BUYERS LIKE PILLSBURY ARE CONSOLIDATING SUPPLIERS AND GIVING THEM MORE ORDERS TO GAIN PRICING LEVERAGE PILLSBURY A UNIT OF GRAND METROPOLITAN PLC FIGURED THAT BY WORKING TO IDENTIFY PROVEN PERFORMERS AND BY CONSOLIDATING BUYING WITH FEWER VENDORS WE WOULD BE ABLE TO HOLD THE COSTS AND WE HAVE SAYS A SPOKESWOMAN THAT'S GOOD NEWS AND BAD NEWS FOR MEAD CORP IN DAYTON OHIO WHICH MAKES PAPERBOARD PACKAGING FOR ROLLS AND BISCUITS PILLSBURY'S NEW SUPPLIER PLAN MEANS MORE PACKAGING ORDERS BUT WITH LESS CHANCE OF GAINING PERUNIT PRICE INCREASES MEAD ALSO IS SUFFERING FROM INDUSTRY OVERSUPPLY WHICH ALMOST ALWAYS RESTRAINS PRICES IN COATED PAPER IN 1991 AND 1992 THE INDUSTRY BOOSTED CAPACITY BY 7 AND 5 RESPECTIVELY JUST AS THE ECONOMY SLOWED IT'S TAKING A LONG WHILE TO ABSORB THAT NEW CAPACITY SAYS A SPOKESWOMAN IT'S BEEN A TOUGH MARKET LIKEWISE A SCHULMAN INC WHOSE PLASTIC COMPOUNDS AND RESINS GO INTO EVERYTHING FROM GARBAGE BAGS TO WRAPPING PAPER AND FABRIC TO PROTECT CROPS FROM INSECTS WATCHED PRICES PLUMMET LAST YEAR TO 1978 LEVELS SAYS TERRY L HAINES PRESIDENT OF THE AKRON OHIO COMPANY THE REASON HORRIBLE OVERSUPPLY HE SAYS THERE'S A LITTLE BIT OF A SPARK OF PRICE INCREASES IN EUROPE HE SAYS BUT I THINK NOW IT'S GOING TO BE PROBABLY FALL BEFORE ANYTHING HAPPENS HERE EVEN PRODUCERS SERVING THE REINVIGORATED AUTO MARKETS AREN'T NECESSARILY SEEING PRICE RELIEF THE NATION'S LARGEST TIRE MAKER GOODYEAR TIRE & RUBBER CO IS TRYING TO RAISE PRICES BY AT LEAST 3 WHILE GOODYEAR SAYS THE INCREASE IS STICKING IN SOME CASES DEALERS SAY IT'S BEEN WIPED OUT BY SPECIAL DISCOUNTS MEANWHILE EUROPEAN TIRE MAKERS SUCH AS GROUPE MICHELIN PIRELLI SPA AND CONTINENTAL AG ARE KEEPING PRICES LOW TO GRAB US MARKET SHARE AND HOPEFULLY ABSORB EXCESS CAPACITY IN THEIR WEAK HOME MARKETS SAYS DAVID M GARRITY AN ANALYST WITH MCDONALD & CO SECURITIES INC THE RUBBER MANUFACTURERS OVER THE LAST 19 MONTHS TO TWO YEARS HAVE ANNOUNCED MANY PRICE INCREASES NONE OF WHICH HAVE STUCK SAYS MR FORBES AT PEERLESS TYRE TIRE MAKERS KNOW THEY NEED TO MAKE MORE MONEY BUT THEY'RE NOT WILLING TO GIVE UP ANY UNITS TO THEIR COMPETITORS STILL SOME MANUFACTURERS BELIEVE INFLATION WILL COME IN TIME SCHULMAN'S MR HAINES HAS SEEN IT BEFORE IN THE PLASTICS AND RESINS INDUSTRY IN THE EARLY 1980S THERE WERE SEVEN CONSECUTIVE QUARTERLY PRICE INCREASES AFTER DEMAND CAUGHT UP WITH SUPPLY AS SOON AS THE ECONOMY PICKS UP AND PEOPLE GET CLOSE TO BEING ABLE TO PUT IN AN INCREASE IT'S GOING TO HAPPEN HE SAYS 9306210122 930621 SWEDEN'S TRADE SURPLUS IN MAY STOCKHOLM SWEDEN'S TRADE SURPLUS HELD STEADY AT 50 BILLION KRONOR 6665 MILLION IN MAY UNCHANGED FROM APRIL BUT UP SHARPLY FROM 27 BILLION KRONOR A YEAR EARLIER ACCORDING TO FIGURES RELEASED FRIDAY BY SCB THE NATIONAL STATISTICS AGENCY THE MAY SURPLUS WAS SOMEWHAT ABOVE MARKET EXPECTATIONS OF A SURPLUS OF 45 BILLION KRONOR THE AGENCY SAID 9306210121 930621 ITALIAN MINISTER EXPECTS TELECOMMUNICATIONS BODY TO BEGIN IN 1993 SPECIAL TO THE WALL STREET JOURNAL MILAN MAURIZIO PAGANI ITALY'S MINISTER OF POST AND TELECOMMUNICATIONS SAID THE COUNTRY'S NEW TELECOMMUNICATIONS REGULATORY BODY WILL BE IN PLACE BY THE END OF THIS YEAR MR PAGANI SAID AT A CONFERENCE IN VENICE THAT HE PLANS TO PRESENT AN OUTLINE FOR THE SOCALLED TELECOMMUNICATIONS AUTHORITY TO THE GOVERNMENT AT A CABINET MEETING THIS WEEK THE NEW AGENCY IS PART OF A RESTRUCTURING OF THE SECTOR THAT INCLUDES THE TRANSFORMATION OF THE MINISTRY OF POST AND TELECOMMUNICATIONS INTO A JOINT STOCK COMPANY MR PAGANI SAID THE NEW AGENCY WON'T BE AUTONOMOUS AT FIRST BUT WILL BE TIED TO THE MINISTRY OF THE POST AND TELECOMMUNICATIONS WHEN THE RIGHT CONDITIONS ARE REALIZED THIS UMBILICAL CORD WILL BE CUT AND A NEW INDEPENDENT REGULATORY AGENCY WILL EMERGE HE TOLD JOURNALISTS THE RESTRUCTURING SO FAR HAS SEEN A PRELIMINARY REFORM OF RATES AND THE PASSAGE OF LONGDISTANCE CARRIER AZIENDA DI STATE PER I SERVIZI TELEFONICI ASST FROM MR PAGANI'S MINISTRY TO THE STATE HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE IRI CONTROLS KEY TELECOMMUNICATIONS HOLDING SOCIETA FINANZIARIA TELEFONICA PER AZIONI WHICH IS LIKELY TO BE MERGED WITH ASST MR PAGANI ALSO TOLD THE CONFERENCE THAT HE HOPES THE GOVERNMENT WILL BE ABLE TO DESIGNATE A SECOND LICENSE FOR CELLULAR TELEPHONES ALLOWING COMPETITION FOR THE FIRST TIME IN THAT AREA 9306210120 930621 HEARD ON THE STREET MANAGER AIMS AT AVOIDING FAD' STOCKS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE MUTUAL FUND INVESTORS WHOSE MONEY IS STEERED BY THOMAS A FRANK NEVER GOT IN ON THE OVERTHECOUNTER MARKET'S EXCITING FADS LIKE CASINO COMPANIES AND SNAPPLE BEVERAGE OF COURSE THAT MEANS THEY WON'T FEEL THE PAIN OF SNAPPLE'S 12 DIVE FRIDAY OR THE TWOWEEK PUMMELING OF THE CASINO GROUP NOT TO MENTION ANY FURTHER DECLINES THAT COULD BE ON THE WAY MR FRANK WHO IS RESEARCH DIRECTOR AND A SENIOR PORTFOLIO MANAGER AT MUTUALFUND GIANT DREYFUS CORP IS PUTTING MILLIONS OF HIS FUND INVESTORS' DOLLARS INTO SOME SMALLISH INDUSTRIAL STOCKS THAT AT FIRST GLANCE LOOK ANYTHING BUT SIZZLING LIKE CASCADE CORP NOW AT 20 7/8 ON THE NASDAQ OVERTHECOUNTER MARKET IS HE CRAZY NO THIS IS THE PORTLAND OREBASED CASCADE THAT MAKES ATTACHMENTS FOR FORKLIFT TRUCKS NOT THE UNRELATED CASCADE INTERNATIONAL THAT COLLAPSED IN SCANDAL IN LATE 1991 TRADERS AT TIMES MIX UP THE TWO COMPANIES YEAH IT GOT HIT ON NASDAQ ALONG WITH THE OTHER ONE SAYS MR FRANK BUT THIS HAS BEEN A WONDERFUL COMPANY OR ALBANY INTERNATIONAL A MAKER OF FABRIC USED IN PAPER MAKING THAT TRADES ON THE BIG BOARD AT 16 3/8 OR AN ASTOUNDING 116 TIMES THE PAST 12 MONTHS' EARNINGS HE SAYS IT DOESN'T BOTHER HIM BECAUSE EARNINGS WILL RISE OR THE AMERICAN STOCK EXCHANGE'S AURORA ELECTRONICS A COMPUTERCIRCUIT BOARD RECYCLER THAT HAS SLUMPED 24 THIS MONTH TO 8 1/8 WHAT THESE STOCKS HAVE IN COMMON SAYS THE 51YEAROLD MR FRANK IS THEY'RE OFTEN IGNORED BY INVESTORS WHO MAKE SNAP JUDGMENTS YET ALL THE COMPANIES MAKE ECONOMIC SENSE HE SAYS AND ALSO FIT MR FRANK'S CURRENT EUROPERELATED THEME OF BUYING COMPANIES THAT WILL BENEFIT FROM A PICKUP IN INDUSTRIAL PRODUCTION IN EUROPE HE SAYS THESE ARE ALL STOCKS THAT HAVEN'T ALREADY SOARED ON THE EXPECTATIONS OF GROWTH IN EUROPE AND THE COMPANIES WOULD STILL BE FINE EVEN IF THE EUROPEAN SCENARIO DOESN'T PAN OUT HE SAYS IT REALLY IS A HOPE IN OUR MIND THAT EUROPE WILL BE BETTER IN 1994 THAN 1993 SAYS MR FRANK THESE TYPES OF STOCKS STAND TO BENEFIT FOR EXAMPLE ALBANY IS A SMALL BUT INTERNATIONAL COMPANY THAT'S QUITE DOMINANT IN ITS BUSINESS MR FRANK SAYS IF PAPER PRODUCTION PICKS UP THE PAPER MANUFACTURER HAS TO COME TO ALBANY FOR ITS PRODUCT KNOWN AS PAPER MACHINE CLOTHING WITH THE STOCK MARKET STUCK IN A TRADING RANGE MR FRANK IS DOING WHAT MOST MUTUALFUND MANAGERS MUST TRYING TO FIND GOOD INDIVIDUAL STOCKS AND AVOID LAND MINES HE STICKS WITH STRONG BUT RELATIVELY BORING COMPANIES AND AVOIDS CRAZES HE INSISTS IT'S THE RIGHT WAY TO POSITION HIS DREYFUS NEW LEADERS FUND ASSETS 270 MILLION IN CASE THE MARKET TAKES A TUMBLE IN COMING MONTHS IT'S A VERY DIFFICULT MARKET HE SAYS THE OVERALL MARKET DOESN'T CRASH BUT INDIVIDUAL STOCKS DO IF YOU OWN 120 STOCKS YOU'RE GONNA GET WHACKED ONCE A WEEK THAT MAKES A LOT OF PEOPLE NERVOUS MR FRANK'S CONSERVATIVE APPROACH HAS ENABLED NEW LEADERS FUND WHICH SPECIALIZES IN SMALL COMPANIES TO DO WELL BUT NOT SPECTACULARLY THIS YEAR COMPARED WITH ITS SMALLSTOCK BENCHMARK THE RUSSELL 2000 INDEX MR FRANK HAS OVERSEEN A 4 RISE THIS YEAR IN THE FUND NEARLY IDENTICAL WITH THE RUSSELL INDEX AND ABOVE THE NASDAQ COMPOSITE'S 3 RISE I NEVER EXPECT TO BEAT THE AVERAGES BY HUGE AMOUNTS AT ANY POINT IN TIME HE SAYS MY DREAM IS ALWAYS TO SORT OF NICKELANDDIME THE AVERAGES MONTH BY MONTH AND LET IT ADD UP AND IT HAS FOR THE FIVE YEARS THROUGH MARCH 31 DREYFUS NEW LEADERS IS UP 16 A YEAR ON AVERAGE COMPARED WITH THE RUSSELL INDEX'S 12 STILL WHILE HE HAS BEEN BUSY WITH SUCH AN APPROACH MR FRANK HAS MISSED OUT ON THE NASDAQ MARKET'S CASINOSTOCK RALLY AND SUBSEQUENT FALLBACK THE HONEST ANSWER IS WE WERE JUST LOOKING THE OTHER WAY AS WELL AS THE PERSISTENT RALLY IN SNAPPLE A NEW YORK SOFTDRINK MAKER THOUGH HE BOUGHT SNAPPLE IN LAST DECEMBER'S INITIAL OFFERING HE SOLD TOO SOON AND MISSED OUT ON MULTIPLYING HIS GAINS I THOUGHT IT WAS AN OUTRAGEOUSLY HIGHPRICED STOCK THEN IN DECEMBER AT A SPLITADJUSTED 10 A SHARE HE SAYS AND HOW DOES HE FEEL THAT THE STOCK CLOSED FRIDAY AT 39 EVEN AFTER SLUMPING 5 1/4 I FEEL SICK WE DIDN'T DO IT RIGHT BUT I JUST COULDN'T IN THE PAST ONE OF HIS OTHER FAVORITES HAS BEEN BROCK CANDY A FAMILYRUN SPECIALTY CANDY MAKER THAT WENT PUBLIC IN MARCH AT 14 AND HAS MANAGED TO CLIMB ONLY TO 16 ON NASDAQ THE COMPANY IS KNOWN FOR ITS EXPERTISE IN GUMMI SUBSTANCES FOR BIGGER COMPANIES LIKE HERSHEY FOODS I LIKE THE MANAGEMENT A GREAT DEAL HE SAYS STILL HE CALLS THE STOCK A LITTLE BIT DANGEROUS FOR SMALL INVESTORS TO HOLD BECAUSE THE COMPANY RELIES SO MUCH ON CONTRACTS THAT COULD BE PULLED IN THE FUTURE AS FOR THE OVERALL STOCK MARKET WHICH IS TEETERING AT NEARRECORD LEVELS MR FRANK ISN'T TOO OPTIMISTIC LIQUIDITY OR EASE OF TRADING IS DRYING UP REFLECTING MASSIVE ISSUANCE OF NEW STOCKS AND FEARS OF FEDERAL TAX INCREASES THERE COULD EITHER BE A REAL CORRECTION IN COMING MONTHS HE SAYS OR A VERY VERY DIFFICULT MARKET FOR MANY YEARS A STOCK PICKER'S MARKET SOMETHING THAT JUST MEANDERS AROUND AND FINALLY EARNINGS COME UP TO SUPPORT MARKET VALUATIONS SOMEWHERE DOWN THE ROAD 9306210119 930621 ACC TO SPIN OFF CANADIAN UNIT ROCHESTER NY ACC CORP HAS FILED TO SPIN OFF ITS CANADIAN SUBSIDIARY ACC TELENTERPRISES LTD IN AN INITIAL PUBLIC OFFERING OF TWO MILLION SHARES AT A PRICE OF 11 CANADIAN DOLLARS US861 EACH CLOSING IS ANTICIPATED TO OCCUR ON OR ABOUT JULY 6 AFTER THE OFFERING ACC CORP A DIVERSIFIED TELECOMMUNICATIONS COMPANY WILL MAINTAIN ABOUT 70 OWNERSHIP IN ACC TELENTERPRISES ACC TELENTERPRISES WILL GRANT AN OPTION TO PURCHASE UP TO 300000 ADDITIONAL SHARES TO COVER OVERALLOTMENTS TO UNDERWRITERS WHO ARE NESBITTTHOMSON INC BURNS FRY LTD WOOD GUNDY INC MIDLAND WALWYN CAPITAL INC AND FIRST MARATHON SECURITIES INC 9306210118 930621 INTERNATIONAL DANISH CAR REGISTRATIONS DIP COPENHAGEN NEW DANISH CAR REGISTRATIONS DROPPED TO 10206 UNITS IN MAY 1993 DOWN 4 FROM 10628 UNITS A YEAR EARLIER THE STATE STATISTICS AGENCY SAID FRIDAY OVER THE 12MONTH PERIOD FROM JUNE 1992 TO MAY 1993 THE NUMBER OF NEW REGISTERED CARS DROPPED 101 TO 76678 UNITS FROM 86751 CARS IN THE PREVIOUS 12MONTH PERIOD 9306210117 930621 CANADA'S CONSUMER PRICES OTTAWA CANADA'S CONSUMER PRICE INDEX DECLINED A SEASONALLY ADJUSTED 02 IN MAY FROM APRIL DESPITE HIGHER FOOD PRICES SAID STATISTICS CANADA A GOVERNMENT AGENCY THE MAY FIGURE FOLLOWED A 02 INCREASE IN APRIL AND A 01 DECLINE IN MARCH FOOD PRICES IN MAY ROSE A SEASONALLY ADJUSTED 08 FROM APRIL 9306210116 930621 LETTERS TO THE EDITOR NANNY MOM AND CHILDREN'S LOVE YOUR MAY 21 PAGE ONE ARTICLE NANNIES AND MOTHERS STRUGGLE OVER ROLES IN RAISING CHILDREN IN CHARACTERIZING THE CAREER MOTHER IN AN EMOTIONAL BATTLE WITH THE NURTURING NANNY TRIVIALIZES THE REAL ISSUES FACING WOMEN IN THIS COUNTRY WHO MUST WORK FOR A LIVING THESE ISSUES INCLUDE A DEFICIT OF GOOD AFFORDABLE CHILD CARE OPTIONS AND THE FACT THAT TRUE EQUALITY OF EMPLOYMENT OPPORTUNITIES AND BENEFITS FOR WOMEN DOES NOT YET EXIST MOREOVER THE ARTICLE ADDS FUEL TO THE STEREOTYPE OF THE EMOTIONALLY CONFLICTED CAREER WOMAN WHO MANY MEN WILL PRIVATELY CONCEDE HAS NO BUSINESS IN THE WORK ENVIRONMENT AND IN THE CURRENT STAGNANT ECONOMY HAS WRESTED JOBS AWAY FROM THE MEN WHO NEED THEM MOST YOU USE TERMINOLOGY THAT SUPPORTS THE ATTITUDE THAT WOMEN ALONE ARE RESPONSIBLE FOR THEIR CHILDREN YOU QUOTE NANNIES WHO COMPLAIN THAT WOMEN SHOULD NOT HAVE HAD CHILDREN IF THEY DIDN'T WANT TO TAKE CARE OF THEM AND YOU USE THE TERM CAREER MOTHER AS IF FATHERS WHO WORK ARE SOMEHOW FORGIVINGLY DISENGAGED FROM THE RESPONSIBILITY OF RAISING CHILDREN BY FOCUSING ON THE RELATIONSHIP BETWEEN NANNY AND CAREER MOTHER YOU ARE ZEROING IN ON A TINY SEGMENT OF THE POPULATION THAT USES THE TERM NANNY WHILE THE REST SHIFT THEIR SCHEDULES BETWEEN WORKPLACE SCHOOL TEMPORARY BABYSITTING RELATIVES AND A HODGEPODGE OF SCHEDULING NIGHTMARES BECAUSE THEY NEED TO WORK AND CANNOT AFFORD THE LUXURY OF THE FULLTIME 300PLUSAWEEK CAREGIVER YOU ACCURATELY PINPOINT THE DEPENDENCE OF WORKING WOMEN UPON THEIR CHILD CARE OPTIONSBUT THE REAL ISSUE IS THAT THE OPTIONS ARE LIMITED AND WOMEN THEMSELVES SHOULD NOT HAVE TO CONTINUE TO SHOULDER THE TOTAL BURDEN OF THEIR CHILDREN'S WELFARE WHEN I READ THE USE OF MY COMMENTS IN YOUR ARTICLE I FELT BAD NOT FOR MYSELF BUT FOR THE NEW OR EXPECTANT MOTHERS WHO READ THE ARTICLE I DID TELL YOUR REPORTER THAT BEFORE I HAD A CHILD I WAS RESIGNED TO THE FACT THAT THE CHILD WOULD LOVE THE NANNY MORE BUT ONE WONDERFUL PART OF MOTHERHOOD WAS LEARNING THAT CHILDREN HAVE AN INFINITE CAPACITY FOR LOVE AND CAN LOVE THEIR NANNIES WITHOUT LOVING THEIR MOTHERS LESS I BELIEVE THAT CHILDREN'S CAPACITY FOR LOVE IS SIMILAR TO THE LOVE PARENTS FIND FOR ADDITIONAL CHILDREN THE LOVE I HAVE FOR MY THREE CHILDREN AND THE LOVE THEY HAVE FOR ME HAS BEEN THE MOST ENRICHING PART OF MY LIFE I FELT LIKE YOUR REPORTER QUOTED THE BUILDUP BUT LEFT OUT THE PUNCH LINE IT WAS LIKE TELLING THE STORY OF CINDERELLA AND LEAVING OUT THE BALL YOUR ARTICLE WAS INSULTING AND VAPID A TINY PORTION OF WORKING PARENTS WITH NANNIES CARE MORE ABOUT HOW SILVERWARE IS STORED OR LAUNDRY FOLDED THAN ABOUT THE WELFARE OF THEIR CHILDREN WHEN MY CHILDREN ARE WELLCAREDFOR AND LOVED BY A NANNY WHILE I WORK FROM A HOMEBASED OFFICE I'M A HAPPY MOM NOT A JEALOUS ONE WHY DID I AND MY FRIENDS BEAR CHILDREN AND THEN HAVE THE AUDACITY TO CONTINUE A PROFESSION IN SOME MANNER AS WELL TWO REASONS ONE BECAUSE WE LOVE BOTH CHILDREN AND OUR JOBS TWO BECAUSE EDUCATION AND A KNOWLEDGE OF ECONOMIC CONDITIONS TAUGHT US THAT A FAMILY NEEDS MORE THAN LOVE TO KEEP IT TOGETHER PAYING THE MORTGAGE AND BASIC BILLS TAKES MORE THAN ONE INCOME FOR A GREAT MAJORITY OF THE POPULATION MANY MOMS BECOME SINGLE PARENTS THROUGH NO CHOICE OF THEIR OWN MANY DADS EXPERIENCE LAYOFFS IF THE MOTHERS IN THESE FAMILIES OPT OUT OF THE WORK FORCE TO AVOID CRITICISM BY NANNIES THESE WOMEN MAY BE MAKING A MISTAKE THAT COULD COST THEIR KIDS A LOT MORE THAN GOOD PLAY DATES 9306210115 930621 GLOBAL VIEW AEROSPACE HYBRIDS TACKLE A SHRINKING MARKET BY GEORGE MELLOAN PARIS SITTING ON THE FLIGHT LINE AT THE PARIS AIR SHOW LAST WEEK WAS A CONVENTIONALLOOKING AIRLINER WITH UNCONVENTIONAL PARENTAGE IT WAS PUT TOGETHER BY A COMPANY CALLED BRAVIA A RUSSIANREGISTERED JOINT STOCK COMPANY BACKED BY A RUSSIAN COUNTRY FUND SET UP BY THE BIG LONDON INVESTMENT BANKING HOUSE ROBERT FLEMING & CO LTD CALLED THE TUPOLEV 204 THE PLANE WAS HATCHED AT RUSSIA'S TUPOLEV DESIGN BUREAU WHICH FIRST STARTED SPROUTING AIRCRAFT DESIGNS FOR THE OLD SOVIET UNION IN 1922 THE TU204 WAS BUILT AT THE ULYANOVSK AVIATION INDUSTRIAL COMPLEX A FORMER SOVIET FACILITY TAKEN OVER LAST YEAR BY AVIASTAR JSS RUSSIA'S FIRST PRIVATIZED AVIATION FIRM FLEMING BROUGHT IN ROLLSROYCE A LONGTIME CLIENT TO SUPPLY THE ENGINES TWO POWERFUL RB211535S THE INTERIOR WAS CRAFTED OUT OF TEXTILES HONEYCOMB AND COMPOSITES FROM THE US FRANCE AND SWITZERLAND BY AVINTCO A BRITISHRUSSIAN JOINT VENTURE IN ULYANOVSK SHOPPERS INTERESTED IN THIS 38 MILLION 150TO200SEAT JETLINER CAN HAVE A CHOICE OF RUSSIAN AVIONICS CONTROL AND NAVIGATION EQUIPMENT OR ELECTRONICS PROVIDED BY ROCKWELL INTERNATIONAL'S COLLINS AVIONICS DIVISION OF CEDAR RAPIDS IOWA IN SHORT THIS NEW HYBRID AIRPLANE COMBINES THE SKILLS AND TECHNOLOGY OF THE AIRCRAFT INDUSTRIES OF RUSSIA AND THE WEST WHICH NOT SO LONG AGO WERE CONCENTRATING ON TRYING TO BEST EACH OTHER IN MAKING WEAPONS OF WAR GEORGE S HORTON DIRECTOR GENERAL OF BRAVIA AND ALSO A DIRECTOR OF FLEMING SAYS THE INTERNATIONAL VERSION OF THE PLANE WILL BE AVAILABLE FOR DELIVERY IN 1996 ITS BIG SELLING POINT NOT SURPRISINGLY IS PRICE HE THINKS HE CAN UNDERCUT THE PRICES OF WESTERN AIRLINERS BY SOME 30 GIVEN THE LOW COST OF PRODUCING MOST OF THE AIRPLANE IN RUSSIA THE TU204 WILL COMPETE WITH THE BOEING 757 AND THE AIRBUS A321 BUT DON'T ASSUME THAT THIS PRICE ADVANTAGE WILL BLOW BOEING AND AIRBUS OUT OF THE MARKET RELIABILITY SERVICE AND MAINTENANCE COSTS OVER AN AIRPLANE'S LIFETIME ARE JUST AS IMPORTANT TO AIRLINES AS ORIGINAL COST AND THEN THERE IS THE QUESTION OF CERTIFICATION BY MOST ACCOUNTS HERE THE FEDERAL AVIATION ADMINISTRATION WILL BE IN NO HURRY TO CERTIFY RUSSIAN HYBRIDS FOR OPERATION IN THE US BUT FLEMING IS PROBABLY TOO SMART AN INVESTMENT HOUSE TO HAVE HEADED DOWN A BLIND ALLEY RUSSIA'S PRIVATIZED AIRLINES WILL BE SHORT ON CASH TO REPLACE AGING AND UNRELIABLE SOVIET EQUIPMENT BUT LOOKING DOWN THE ROAD A FEW YEARS AND ASSUMING THAT RUSSIAN AIRLINES BEGIN EARNING MONEY THE RUSSIAN MARKET IS POTENTIALLY VERY LARGE RUSSIA DEPENDS HEAVILY ON AIR TRAVEL AND ITS AIRLINES LIKE AIRLINES EVERYWHERE WILL BE LOOKING FOR THE BEST EQUIPMENT THEY CAN GET FOR THEIR MONEY ALTHOUGH BOEING AND AIRBUS WILL BE TRYING TO CRACK THE MARKET FROM THE OUTSIDE THE TU204 WILL ALMOST CERTAINLY BE A STRONG CONTENDER IN THE FORMER SOVIET ORBIT YET ANOTHER HYBRID PRODUCER ILYUSHIN AIRCRAFT ASSOCIATION ANNOUNCED AT THE AIR SHOW THAT IT HAD RECEIVED 30 FIRM ORDERS 10 FROM THE WEST FOR ITS ILYUSHIN 96M A 350SEAT WIDEBODY IT IS POWERED BY PRATT & WHITNEY ENGINES AND ALSO HAS COLLINS AVIONICS AND AT 70 MILLION IS DESIGNED TO COMPETE WITH THE BOEING 767 AND AIRBUS A340 OTHER PRODUCERS AT THE SHOW WERE SKEPTICAL THAT THESE CLAIMED ORDERS ARE REALLY FIRM BUT THE ANNOUNCEMENT WAS YET ANOTHER SIGN OF THE AGGRESSIVENESS THE RUSSIAN AND UKRAINIAN AIRCRAFT INDUSTRIES ARE DEVELOPING AS THEY SEEK TO COMPETE IN WORLD MARKETS MUCH OF THE NEWS OF THIS SHOW INVOLVED RUSSIAN AIRCRAFT INCLUDING A PROPOSED NEW MIG TRAINER USING A FRENCH SNECMA ENGINE AND AN ISRAELI PROPOSAL TO MODERNIZE MIG 21 FIGHTERS WHICH STILL FORM THE CORE OF MANY AIR FORCES THAT WERE SOVIET CLIENTS DURING THE COLD WAR THE INTERESTING THING ABOUT ALL OF THIS HAS BEEN THE SPEED WITH WHICH IT HAS HAPPENED BUT THEN IT SHOULD NOT BE SUCH A BIG SURPRISE THE SOVIET UNION WAS A MILITARY STATE DEVOTING ENORMOUS ENGINEERING AND MANUFACTURING RESOURCES TO THE CONSTRUCTION OF WEAPONS ITS AIRCRAFT TECHNOLOGY WHILE NOT UP TO US STANDARDS WAS OF HIGH QUALITY SOME MILITARY SPECIALISTS ARGUE FOR EXAMPLE THAT THE MIG 29 IF EQUIPPED WITH A WESTERN ENGINE WOULD BE SUPERIOR TO THE US F16 ALTHOUGH THAT IS HIGHLY DEBATABLE ELECTRONICS ARE THE REAL GUTS OF ANY MODERN WEAPONS SYSTEM AND US ELECTRONIC TECHNOLOGY IS FORMIDABLE YET IT DIDN'T TAKE FOREIGN INVESTORS SUCH AS FLEMING VERY LONG TO RECOGNIZE THE POTENTIAL OF SUCH A HIGHLY DEVELOPED INDUSTRY MR HORTON NOTES THAT WHILE THE RUSSIANS ARE SHORT ON MARKETING SKILLS THEIR ENGINEERS ARE IMPRESSIVE AND HAVE WORKED VERY WELL WITH BRITISH ENGINEERS ON THE TU204 INVESTORS ALSO RECOGNIZED THAT THE AEROSPACE BUSINESS BOTH ON THE COMMERCIAL AND MILITARY SIDE IS LIKELY TO BECOME MORE AND MORE COMPETITIVE DEFENSE BUDGETS ARE BEING SLASHED ALL OVER THE WORLD PROMPTING MILITARY ORGANIZATIONS TO SEARCH OUT THE BEST EQUIPMENT BARGAINS THEY CAN FIND COMMERCIAL AIRLINES HAVE BEEN UNDER HEAVY COST PRESSURES AS THEY FEEL THE EFFECTS OF A WORLDWIDE RECESSION ONE OF THE SPINOFFS OF THIS SITUATION ASIDE FROM THE OPPORTUNITIES IT HAS PROVIDED TO LOWCOST PRODUCERS HAS BEEN A VIGOROUS EFFORT BY ALL NATIONS TO TRY TO PRESERVE WHAT THEY CAN OF THEIR DEFENSE INDUSTRIAL BASE MAKERS OF COMPONENTS ARE BARGAINING HARD FOR DEALS THAT ALLOW THEM TO INJECT AS MUCH LOCAL CONTENT AS THEY CAN IN ANY EQUIPMENT THEY BUY THIS MEANS NEW ALLIANCES AND COPRODUCTION DEALS IT IS IN SHORT A BUYERS' MARKET AND THE TEMPTATIONS FOR EVERY COUNTRY TO TRY TO PROTECT ITS OWN INDUSTRY FROM OUTSIDE COMPETITION ARE STRONG THE HUGE US AEROSPACE INDUSTRY IS SUFFERING A STEADY DECLINE IN JOBS AS THE US MILITARY PROCUREMENT BUDGET SHRINKS AS A CONSEQUENCE THERE HAS BEEN A MASSIVE REORGANIZATION UNDERWAY AS SOME COMPANIES SUCH AS GENERAL ELECTRIC SHED AEROSPACE DIVISIONS AND OTHERS SUCH AS LOCKHEED ACQUIRE THEM AND CONSOLIDATE THEM INTO EXISTING CORPORATE STRUCTURES WHAT DOES ANY OF THIS MEAN FOR THE FUTURE THE SURVIVAL STRUGGLE OF AEROSPACE COMPANIES IN RUSSIA AIDED BY WESTERN INVESTMENT HAS PROVED THAT EVEN FORMER STATE ENTERPRISES CAN DISPLAY SOME AGILITY AS THE RUSSIAN PRIVATIZATION CONTINUES AND MAYBE UKRAINIAN PRIVATIZATION IF THAT COUNTRY CAN EVER GET ITS POLITICAL ACT TOGETHER THE FORMER SOVIET AEROSPACE INDUSTRY MAY BUILD RAPIDLY ON ITS COMPARATIVELY STRONG BASE THERE ARE SOME GROWING MARKETS CHINA AND SOME OF THE SOUTHEAST ASIAN COUNTRIES FOR EXAMPLE DESPITE THE GLOBAL RECESSION THERE COULD HARDLY BE A BETTER FIELD THAN AEROSPACE FOR WESTERN NATIONS AND PARTICULARLY THE US TO ASSESS TRADE POLICIES IT MIGHT BE A GOOD IDEA TO DAMP DOWN CONTENTIOUSNESS AND CONCENTRATE ON FINDING AND CULTIVATING FRIENDSHIPS AND ALLIANCES 9306210114 930621 DUQUESNE LIGHT REDEMPTION PITTSBURGH DUQUESNE LIGHT CO A SUBSIDIARY OF DQE INC SAID IT WILL REDEEM THE ENTIRE OUTSTANDING PRINCIPAL AMOUNT OF TWO SERIES OF FIRST MORTGAGE BONDS THE COMPANY SAID IT WILL REDEEM 964 MILLION OF ITS 8 3/8 SERIES DUE APRIL 1 2007 AT 10388 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST IT WILL ALSO REDEEM 99 MILLION OF ITS 9 SERIES DUE FEB 1 2017 AT 10578 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST THE REDEMPTION DATE FOR BOTH ISSUES IS JULY 20 DQE IS AN ENERGY SERVICES HOLDING COMPANY DUQUESNE LIGHT AN ELECTRIC UTILITY IS ITS PRIMARY UNIT 9306210113 930621 PS GROUP REPAYS SOME CREDIT SAN DIEGO PS GROUP INC SAID IT REPAID 299 MILLION OF OUTSTANDING PRINCIPAL UNDER ITS EXISTING BANK CREDIT AGREEMENT MEETING TODAY'S DEADLINE UNDER WHICH AT LEAST 20 MILLION WAS DUE PS GROUP SAID IT OBTAINED THE MONEY BY REFINANCING FIVE MD80 AIRCRAFT THAT ARE CURRENTLY LEASED TO USAIR GROUP INC UNDER LONGTERM LEASES THE COMPANY SAID THE PAYMENT ALSO APPLIES 99 MILLION TO A REQUIRED 15 MILLION PAYMENT DUE DEC 31 PS GROUP IS A HOLDING COMPANY WITH INTERESTS IN TRAVEL MANAGEMENT FUEL SALES AND DISTRIBUTION AND AIRCRAFT LEASING AMONG OTHER THINGS 9306210112 930621 AIR FORCE FINES OUSTS MAJOR GENERAL SAID TO MOCK CLINTON IN PUBLIC SPEECH BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GENERAL WHO REPORTEDLY MOCKED PRESIDENT CLINTON IN A RECENT SPEECH IN EUROPE WAS FINED AND FORCED OUT OF THE AIR FORCE AT A MILITARY AWARDS BANQUET AT AN AIR FORCE BASE IN THE NETHERLANDS ON MAY 24 NEWS REPORTS SAID MAJ GEN HAROLD CAMPBELL DESCRIBED THE PRESIDENT AS DRAFTDODGING POTSMOKING GAYLOVING AND WOMANIZING AT AN UNUSUAL NEWS CONFERENCE FRIDAY AIR FORCE CHIEF OF STAFF GEN MERRILL MCPEAK SAID GEN CAMPBELL WILL BE FINED 7000 OR ABOUT ONE MONTH'S PAY AND RATHER THAN TAKE A WASHINGTON ASSIGNMENT AS HAD BEEN PLANNED GEN CAMPBELL 53 YEARS OLD WILL RETIRE NEXT WEEK AIR FORCE INVESTIGATORS WEREN'T ABLE TO DETERMINE PRECISELY WHAT WAS SAID ABOUT THE PRESIDENT GEN MCPEAK SAID BUT IT SEEMS TO BE EVERYONE'S CONCLUSION UNMISTAKABLY THAT THE REMARKS WERE DISRESPECTFUL OF THE PRESIDENT HE ADDED GENERAL CAMPBELL'S CONDUCT WAS WRONG AND CANNOT BE TOLERATED GEN MCPEAK SAID SOME COMMENTATORS HAVE COMPARED THE CAMPBELL INCIDENT TO PRESIDENT JIMMY CARTER'S 1977 RUNIN WITH ARMY MAJ GEN JOHN SINGLAUB OVER THE WISDOM OF WITHDRAWING US TROOPS FROM SOUTH KOREA HOWEVER THAT CONFLICT WAS MORE COMPLEX INVOLVING DIFFERENCES OVER POLICY AND COMMENTS TO A REPORTER THAT MAY HAVE BEEN OFF THE RECORD RESOLVING GEN CAMPBELL'S CASE WAS FAR SIMPLER BECAUSE HIS BANQUET COMMENTS CLEARLY VIOLATE THE UNIFORM CODE OF MILITARY JUSTICE'S ARTICLE 88 WHICH FORBIDS PUBLIC EXPRESSIONS OF CONTEMPT TOWARD GOVERNMENT OFFICIALS THAT CLARITY ALSO MADE THE SITUATION EASIER FOR THE ADMINISTRATION WHITE HOUSE SPOKESWOMAN DEE DEE MYERS SAID FRIDAY THAT THE AIR FORCE DECIDED WHAT PUNISHMENT WAS APPROPRIATE UNDER THE CIRCUMSTANCES THE PRESIDENT BELIEVES THAT THAT WAS THE APPROPRIATE WAY TO HANDLE IT THUS WHILE MANY SENIOR MILITARY OFFICERS PRIVATELY AGREE WITH GEN CAMPBELL'S ASSESSMENT OF THE PRESIDENT THERE ALSO WAS A NEARUNIVERSAL FEELING AMONG THOSE OFFICERS THAT THE GENERAL WOULD HAVE TO BE OUSTED ONE GENERAL WHO ADVOCATED DOING SO NOTED THAT HE MIGHT UTTER SUCH ANTICLINTON SENTIMENTS IN HIS SLEEP BUT NEVER AT A PUBLIC FUNCTION GEN CAMPBELL'S FATE WAS FURTHER SEALED BY THE FACT THAT ENLISTED PERSONNEL WERE AT THE AWARDS CEREMONY WHICH IN THE EYES OF THE MILITARY WORSENED HIS OFFENSE FINALLY GEN CAMPBELL VIOLATED A SPECIFIC DIRECTIVE ISSUED BY GEN MCPEAK EARLIER THIS YEAR AFTER SOME NAVY PERSONNEL WERE DISRESPECTFUL OF THE PRESIDENT WHEN HE VISITED THE USS THEODORE ROOSEVELT AN AIRCRAFT CARRIER THE AIR FORCE CHIEF REMINDED ALL HIS COMMANDERS THAT SUBORDINATION TO CIVILIAN AUTHORITY IS A CORE VALUE OF THE US MILITARY GEN MCPEAK IS SAID TO BE INTERESTED IN BECOMING THE CHAIRMAN OF THE JOINT CHIEFS OF STAFF WHEN GEN COLIN POWELL RETIRES AT THE END OF SEPTEMBER AND SOME AT THE PENTAGON HAVE INTERPRETED HIS HANDLING OF THE CAMPBELL AFFAIR AS PART OF THAT CAMPAIGN 9306210111 930621 INTERNATIONAL GERMANY'S VEHICLE OUTPUT FELL FRANKFURT GERMAN MOTOR VEHICLE OUTPUT FELL 26 IN MAY FROM A YEAR EARLIER THE GERMAN AUTOMOBILE TRADE ASSOCIATION VDA REPORTED FRIDAY CAR PRODUCTION ALONE WAS OFF 25 WHILE OUTPUT OF BOTH LIGHT AND HEAVY TRUCKS FELL BY 28 AND 30 RESPECTIVELY IN THE FIRST FIVE MONTHS OF THE YEAR MOTOR VEHICLE PRODUCTION DECLINED 25 FROM THE YEAREARLIER PERIOD VDA SAID 9306210110 930621 MACHINISTS ACCEPT PACT AVERT STRIKE AT MCDONNELL ST LOUIS AP MACHINISTS AT MCDONNELL DOUGLAS CORP'S PLANT VOTED ALMOST 4TO1 TO ACCEPT A NEW THREEYEAR CONTRACT AVERTING A THREATENED STRIKE THE VOTE WAS 4140 TO 1289 UNION LEADERS UNANIMOUSLY HAD RECOMMENDED THAT MEMBERS ACCEPT THE TENTATIVE AGREEMENT REACHED THURSDAY AFTER AN 18HOUR NEGOTIATING SESSION THE UNION REPRESENTS PRODUCTION WORKERS ON ALL MCDONNELL DOUGLAS AIRCRAFT PROGRAM LINES INCLUDING THE F18 F15 C17 MD11 AND MD80 THE UNION'S 7500 WORKERS HAD REJECTED AN OFFER LAST WEEK AND VOTED TO STRIKE UNLESS THE COMPANY IMPROVED ITS OFFER UNDER THE CONTRACT MOST MACHINISTS WILL GET ANNUAL LUMPSUM BONUSES EQUAL TO 4 OF THEIR PAY INSTEAD OF GENERAL WAGE INCREASES ABOUT 1500 MACHINISTS WOULD GET BONUSES OF 2 INSTEAD OF RAISES OF 10 CENTS AN HOUR MACHINISTS AT MCDONNELL EARN AS MUCH AS 44000 ANNUALLY NOT COUNTING OVERTIME THE TENTATIVE AGREEMENT ALSO WOULD BOOST PENSION PAYMENTS BY 138 TO 33 A MONTH FOR EVERY YEAR OF SERVICE 9306210108 930621 TECHNOLOGY & HEALTH EMPIRE BLUE CROSS TO REPLACE CHAIRMAN CHIEF AMID NEWS IT OVERSTATED LOSSES BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EMPIRE BLUE CROSS AND BLUE SHIELD ONE OF THE LARGEST NONPROFIT HEALTH INSURERS IN THE US AGREED TO REPLACE ITS TOP MANAGEMENT FOLLOWING REVELATIONS THAT IT OVERSTATED LOSSES IN AN APPARENT BID TO WIN LEGISLATION THAT WOULD DISADVANTAGE COMPETITORS THE INSURER WHICH COVERS EIGHT MILLION PEOPLE IN THE NEW YORK METROPOLITAN AREA SAID IT WOULD FIND A NEW BOARD CHAIRMAN AND CHIEF EXECUTIVE OFFICER FROM OUTSIDE THE ORGANIZATION AS SOON AS POSSIBLE IT HAS BECOME OBVIOUS TO ME THAT THE COMPANY IS IN NEED OF NEW LEADERSHIP SAID NEW YORK STATE'S INSURANCE SUPERINTENDENT SALVATORE CURIALE WHO REJECTED CALLS FOR THE STATE TO SEIZE THE INSURER EMPIRE LOST 250 MILLION OVER THE PAST TWO YEARS AND IS BARELY SOLVENT IN AN EFFORT TO RESCUE THE COMPANY EMPIRE AGGRESSIVELY LOBBIED NEW YORK LAWMAKERS LAST YEAR INTO APPROVING LEGISLATION THAT FORCES FORPROFIT INSURERS TO CHARGE ALL CUSTOMERS THE SAME RATE AND TO ACCEPT EVERY APPLICANT EVEN ONES WHO ARE ILL EMPIRE ALREADY FOLLOWS SUCH GUIDELINES BUT RECEIVES STATE TAX BREAKS AND OTHER FINANCIAL ADVANTAGES IN RETURN THE NEW LAW WHICH TOOK EFFECT IN APRIL PROMPTED NINE INSURANCE COMPANIES TO LEAVE THE STATE AND OTHER COMPANIES TO SHARPLY RAISE HEALTHINSURANCE RATES DURING HEARINGS ON THE LEGISLATION EMPIRE NOW SAYS IT OVERSTATED BY 28 MILLION ITS LOSSES IN 1991 ON INSURANCE SOLD TO INDIVIDUALS AND SMALL COMPANIES EMPIRE OFFICIALS ARGUED THAT THE COMPANY WOULD BE IN JEOPARDY UNLESS LAWMAKERS PASSED THE LEGISLATION IN ADDITION AN INHOUSE AUDIT BY EMPIRE HAS FOUND THAT LOSSES IN 1989 AND 1990 WERE OVERSTATED BY 51 MILLION THE DEMAND FOR NEW MANAGEMENT COMES ABOUT A MONTH AFTER THE LONGTIME CHAIRMAN AND CHIEF EXECUTIVE OF EMPIRE ALBERT CARDONE QUIT AFTER REPORTS OF MISMANAGEMENT AND CRITICISM OF HIS 600000AYEAR SALARY HE WAS SUCCEEDED BY DONALD MORCHOWER WHO HAD BEEN EMPIRE'S CHIEF OPERATING OFFICER MR CURIALE HAS RECOMMENDED HOWARD BERMAN CHIEF EXECUTIVE OF ROCHESTER BLUE CROSS AND BLUE SHIELD TO SUCCEED MR MORCHOWER ALSO SLATED FOR REPLACEMENT IS MR CARDONE'S SUCCESSOR AS BOARD CHAIRMAN HAROLD VOGT WE AGREE WITH EVERYTHING THAT'S BEING DONE MR VOGT SAID THE REVELATIONS ABOUT EMPIRE COME SHORTLY BEFORE HEARINGS ON EMPIRE BY THE US SENATE PERMANENT SUBCOMMITTEE ON INVESTIGATIONS THE HEARINGS WHICH BEGIN FRIDAY WILL LOOK AT EMPIRE'S FINANCIAL SITUATION AS WELL AS ALLEGATIONS OF MISMANAGEMENT AND POOR SERVICE THE SUBCOMMITTEE HAS ALREADY LOOKED INTO PROBLEMS AT BLUE CROSS AND BLUE SHIELD ORGANIZATIONS IN WEST VIRGINIA MARYLAND AND THE DISTRICT OF COLUMBIA ONE PURPOSE OF THE HEARINGS IS TO HELP DETERMINE WHETHER STATES ARE CAPABLE OF REGULATING THE INSURANCE INDUSTRY OR WHETHER THE PUBLIC WOULD BE BETTER SERVED BY FEDERAL OVERSIGHT OF INSURERS 9306210107 930621 INTERNATIONAL FERRUZZI FINANZIARIA SPA OVERHAULS ITS MANAGEMENT MILAN FERRUZZI FINANZIARIA SPA ANNOUNCED MANAGEMENT CHANGES AS PART OF A MAJOR RESTRUCTURING PLAN FOR THE CASHSTRAPPED ITALIAN AGROINDUSTRIAL CONGLOMERATE THE CHANGES TO BE FORMALIZED AT SHAREHOLDERS MEETINGS THIS MONTH FOLLOWED A DECISION FRIDAY BY FERRUZZI'S BANKS TO LAY CLAIM ON THE FERRUZZI FAMILY'S 48 SHAREHOLDING IN FERRUZZI FINANZIARIA GUIDO ROSSI A FORMER COMMUNIST SENATOR AND EXPRESIDENT OF THE ITALIAN STOCK MARKET WATCHDOG COMMITTEE CONSOB WAS DESIGNATED CHAIRMAN OF FERRUZZI FINANZIARIA HE SUCCEEDS ARTURO FERRUZZI THE ELDEST SON OF THE LATE FOUNDER OF THE GROUP SERAFINO FERRUZZI MR ROSSI ALSO WILL BE NAMED CHAIRMAN OF MONTEDISON SPA FERRUZZI'S MAIN OPERATING SUBSIDIARY ENRICO BONDI MANAGING DIRECTOR OF GILARDINI SPA AN AFFILIATE OF FIAT SPA WILL SUCCEED CARLO SAMA AS MANAGING DIRECTOR OF FERRUZZI FINANZIARIA AND MONTEDISON MR SAMA WILL BECOME VICE CHAIRMAN THE FERRUZZI RESTRUCTURING WILL INCLUDE A RESCHEDULING OF THE GROUP'S MORE THAN 15 TRILLION LIRE 996 BILLION IN NET DEBT AND AN ASSET DISPOSAL PROGRAM 9306210106 930621 BCCI DEPOSITS SAID TO FINANCE A BANK IN US TESTIMONY IN ALTMAN CASE LINKS FIRST AMERICAN TO IMPROPER FUNDING BY PETER TRUELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A KEY GOVERNMENT WITNESS SAID LARGE AMOUNTS OF DEPOSITORS' FUNDS FROM BANK OF CREDIT & COMMERCE INTERNATIONAL HELPED TO FINANCE THE EXPANSION OF FIRST AMERICAN BANKSHARES INC ALLEGEDLY CONTROLLED BY BCCI THE TESTIMONY OF IMRAN IMAM A FORMER BCCI OFFICER SEEMS TO UNDERCUT DEFENSE CLAIMS THAT FIRST AMERICAN A MAJOR WASHINGTON DC BANK EXPANDED RAPIDLY BECAUSE OF SKILLFUL MANAGEMENT BY WASHINGTON LAWYER ROBERT ALTMAN AND HIS MENTOR CLARK CLIFFORD THE TWO MEN SERVED RESPECTIVELY AS PRESIDENT AND CHAIRMAN OF FIRST AMERICAN MR IMAM WHO HANDLED TRANSACTIONS RELATING TO FIRST AMERICAN FROM BCCI HOLDINGS LUXEMBOURG SA'S LONDON HEADQUARTERS IS TESTIFYING IN THE NEW YORK STATE TRIAL OF MR ALTMAN ON CHARGES OF BANK FRAUD AND BRIBERY IN THE BCCI MATTER BANK REGULATORS CLOSED BCCI IN JULY 1991 CHARGING THAT IT HAD COOPTED POLITICAL FIGURES WORLDWIDE WHILE LAUNDERING FUNDS AIDING TAXEVADERS AND TERRORISTS AND IN THE END LEAVING HUNDREDS OF DEPOSITORS IN THE HOLE BCCI DEPOSITORS NOW FACE LOSSES TOTALING AS MUCH AS 10 BILLION ALTHOUGH FIRST AMERICAN WAS BASED IN WASHINGTON DC THE CASE INVOLVES ALLEGED WRONGDOING IN NEW YORK MESSRS ALTMAN AND CLIFFORD HAVE CONSISTENTLY MAINTAINED THEIR INNOCENCE OF THE NEW YORK STATE CHARGES AS WELL AS OF SIMILAR CHARGES BROUGHT AGAINST THEM BY THE JUSTICE DEPARTMENT IN JULY 1992 BOTH MEN SERVED AS COUNSEL TO BCCI AND FIRST AMERICAN THEY WERE ALSO STOCKHOLDERS AND TOP OFFICERS OF FIRST AMERICAN WHICH IS CURRENTLY BEING TAKEN OVER BY FIRST UNION CORP OF CHARLOTTE NC MR CLIFFORD'S TRIAL HAS BEEN POSTPONED BECAUSE HE HAS SERIOUS HEALTH PROBLEMS AND RECENTLY UNDERWENT A HEART BYPASS OPERATION LAST WEEK MR IMAM TESTIFIED THAT BCCI ON SEVERAL OCCASIONS PROVIDED FUNDS FOR FIRST AMERICAN'S EXPANSION HE SAID THAT OUT OF 150 MILLION SENT IN 1986 FROM BCCI TO FIRST AMERICAN'S HOLDING COMPANY CREDIT & COMMERCE AMERICAN HOLDINGS ONLY ABOUT 43 MILLION WAS ACTUALLY PROVIDED BY THREE PURPORTED SHAREHOLDERS THE REMAINING 107 MILLION SUPPOSEDLY PUT UP BY HALF A DOZEN OTHER PURPORTED SHAREHOLDERS CAME FROM BCCI MR IMAM TESTIFIED NEW YORK STATE PROSECUTORS HOWEVER WERE UNSUCCESSFUL IN THEIR ATTEMPTS TO GET OTHER MATERIAL INTRODUCED AS EVIDENCE INCLUDING A CHART THAT PURPORTED TO SHOW AS MUCH AS 122 MILLION OF THE ORIGINAL 137 MILLION USED TO BUY FIRST AMERICAN IN 1982 WAS IN FACT PROVIDED BY BCCI THIS MONEY TOO WAS LARGELY TAKEN FROM BCCI DEPOSITORS ACCORDING TO PROSECUTORS AT A FEDERAL RESERVE HEARING IN APRIL 1981 MESSRS CLIFFORD AND ALTMAN ASSURED REGULATORS THAT THE TAKEOVER OF FIRST AMERICAN WOULDN'T INVOLVE BCCI FINANCING DURING CROSSEXAMINATION MR ALTMAN'S LAWYERS HAVE SOUGHT TO PLAY UP DISCREPANCIES IN MR IMAM'S TESTIMONY AND TO EMPHASIZE THAT HE HAS BEEN GRANTED IMMUNITY FROM PROSECUTION IN THE US IN RETURN FOR HIS COOPERATION THE FORMER BCCI OFFICER WHO WAS PAID ABOUT 50000 ANNUALLY BY THE BANK HAS TESTIFIED BEFORE A NUMBER OF GRAND JURIES GOVERNMENT AGENCIES AND INVESTIGATORS OVER THE PAST TWO YEARS AND HE HAS CHANGED HIS TESTIMONY IN SOME CASES HE NOW MAINTAINS THAT HE TOLD MR ALTMAN'S LAW PARTNER GRIFF LESHER THAT MILLIONS OF DOLLARS CAME FROM BCCI RATHER THAN FROM A PURPORTED FIRST AMERICAN SHAREHOLDER SHEIKH KAMAL ADHAM IN PRIOR TESTIMONY HE HAD SAID THAT MR ALTMAN AND HIS ASSOCIATES WEREN'T AWARE OF THE TRUE ORIGIN OF THE FUNDS MR ALTMAN HAS DENIED KNOWLEDGE OF THE DIRECT TRANSFERS FROM BCCI MR IMAM ALSO TESTIFIED THAT BCCI SYSTEMATICALLY ENRICHED MESSRS CLIFFORD AND ALTMAN BY ARRANGING TO BUY SOME OF THEIR FIRST AMERICAN STOCK AT A HIGH PRICE PROSECUTORS ALLEGE THIS WAS A BRIBE IN RETURN FOR MESSRS CLIFFORD AND ALTMAN'S HELP IN EVADING US BANK REGULATORS MR IMAM DESCRIBED HOW IN MARCH 1988 HE HAD MET WITH MR ALTMAN AND BCCI CHIEF EXECUTIVE SWALEH NAQVI IN A CONFERENCE ROOM IN BCCI'S LONDON OFFICES THERE MR IMAM SAID MR NAQVI HAD INSTRUCTED HIM FOLLOW MR ALTMAN'S DIRECTIONS IN THE PROPOSED SALE OF SOME OF MESSRS CLIFFORD AND ALTMAN'S SHARES IN FIRST AMERICAN'S HOLDING COMPANY MR IMAM TESTIFIED THAT MR ALTMAN TOLD HIM THAT BCCI'S FOUNDER AGHA HASAN ABEDI HAD PROMISED HIM A 15 MILLION PROFIT ON HIS STOCK AND A 3 MILLION PROFIT FOR MR CLIFFORD UNDER MR ALTMAN'S INSTRUCTIONS MR IMAM CALCULATED THE PURCHASE PRICE NEEDED TO DELIVER SUCH A PROFIT TO THE TWO WASHINGTON LAWYERS MR ALTMAN CALLED MR IMAM A DAY OR TWO LATER AFTER CONSULTING WITH HIS ACCOUNTANT TO TELL HIM THAT HE HAD TO INCORPORATE A CAPITAL GAINS TAX OF 28 MR IMAM TOLD THE COURT THE PURPORTED BUYER OF MESSRS CLIFFORD AND ALTMAN'S STOCK MOHAMMED HAMMOUD WAS A STRAW MAN MR IMAM SAID THE REAL BUYER HE ALLEGED WAS BCCI MR ALTMAN ALSO TOLD MR IMAM NOT TO MENTION THE SALE OF HIS SHARES TO MR LESHER THE OTHER CLIFFORD & WARNKE LAW PARTNER WITH WHOM MR IMAM DEALT REGULARLY THE GOVERNMENT WITNESS SAID THE TESTIMONY BY MR IMAM IS AT ODDS WITH WHAT MR ALTMAN HAS CLAIMED THE DEFENDANT HAS TOLD THE FEDERAL RESERVE THAT HE DIDN'T KNOW HOW THE PURCHASE PRICE FOR HIS FIRST AMERICAN SHARES WAS CALCULATED THE ALTMAN TRIAL WHICH BEGAN IN MARCH IS PROCEEDING SLOWLY AS THE GOVERNMENT PRESENTS NUMEROUS WITNESSES TO BACK UP ITS CHARGES THE DEFENSE HAS ALSO SOUGHT REPEATEDLY TO DELAY THE TRIAL DURING A RECENT BENCH CONFERENCE JUDGE JOHN BRADLEY WARNED THE DEFENSE ABOUT UNWARRANTED DELAY I DON'T WANT TO LOSE THE JURY WHILE YOU PEOPLE ARE PUTTING A CASE TOGETHER HE SAID THAT SAME DAY MR ALTMAN LEANED OVER TO TELL HIS FAMILY MEMBERS WHO ARE ATTENDING THE TRIAL THE JURY IS GETTING RESTLESS 9306210105 930621 SPEER IS SAID TO HAVE SOLD BIG BLOCK OF HOME SHOPPING NEW YORK ROY M SPEER CHAIRMAN OF HOME SHOPPING NETWORK INC SOLD THE THREEMILLIONSHARE BLOCK OF THE ELECTRONIC RETAILER'S STOCK THAT TRADED ON THE NEW YORK STOCK EXCHANGE LAST WEEK ACCORDING TO PEOPLE CLOSE TO THE COMPANY THE TRADE WHICH OCCURRED LATE THURSDAY AND REPRESENTED 34 OF THE COMPANY'S OUTSTANDING SHARES SET OFF RUMORS ON WALL STREET FRIDAY THAT MR SPEER WAS PREPARING TO STEP DOWN OR WOULD BE FORCED OUT AS CHAIRMAN OF THE TELEVISION HOME SHOPPING COMPANY A HOME SHOPPING SPOKESWOMAN REITERATED OVER THE WEEKEND THAT THE COMPANY DOESN'T KNOW WHO SOLD THE BLOCK OF SHARES AND ADDED THAT SHE WAS UNAWARE OF ANY PLANS BY MR SPEER TO RESIGN REACHED AT HOME YESTERDAY MR SPEER ASKED WHAT ARE YOU CALLING ME FOR I HAVE NO COMMENT OFFICIALS OF LIBERTY MEDIA INC WHICH ACQUIRED CONTROL OF HOME SHOPPING FROM MR SPEER IN DECEMBER COULDN'T BE REACHED FOR COMMENT OR DIDN'T RESPOND TO MESSAGES MR SPEER'S STAKE IN HOME SHOPPING AFTER THURSDAY'S TRADE COULDN'T BE DETERMINED UNTIL HE SOLD 20 MILLION CLASS B SHARES TO LIBERTY MEDIA MR SPEER HAD CONTROLLED HOME SHOPPING THROUGH HIS OWNERSHIP OF 242 MILLION SHARES OR 100 OF THE COMPANY'S SUPERVOTING CLASS B SHARES WHICH DON'T TRADE PUBLICLY AFTER THE TRANSACTION WITH LIBERTY HE CONTINUED TO HOLD 42 MILLION CLASS B SHARES HE ALSO OWNED 86 MILLION SHARES OR 136 OF THE COMPANY'S CLASS A COMMON SHARES OUTSTANDING ACCORDING TO THE 1992 PROXY STATEMENT 9306210104 930621 OTC FOCUS TWO FURNITURE FIRMS' OFFERINGS FACE A NONETOOCUSHY MARKET BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THOUGH THE MARKET SEEMS OVERSTUFFED WITH FURNITURE STOCKS TWO NEW ISSUES LEVITZ FURNITURE AND STANLEY FURNITURE ARE ABOUT TO BE OFFERED TO INVESTORS THE NEWEST FURNITURE STOCK RHODES SLIPPED 1/4 TO 11 3/4 FRIDAY ITS FIRST TRADING DAY FROM ITS OFFERING PRICE OF 12 THE ATLANTA COMPANY HAD TO LOWER ITS DEBUT PRICE FROM ITS ORIGINAL ESTIMATE OF 14 TO 17 THROUGH ITS LEAD UNDERWRITER SALOMON BROTHERS INVESTORS SHOULDN'T RUSH INTO THE INITIAL PUBLIC OFFERINGS OF THESE STOCKS SOME ANALYSTS SAY THE PENDING OFFERINGS WERE PLANNED A COUPLE OF MONTHS AGO WHEN FURNITURE ISSUES WERE STILL SOARING ON GOOD ECONOMIC NEWS BUT FURNITURE STOCKS MANY OF WHICH TRADE ON THE OVERTHECOUNTER MARKET HAVE FALLEN BACK FROM THEIR HIGHS AND SOME THINK THEY COULD DROP FURTHER THE FURNITURE STOCKS ARE DEFINITELY GETTING SATURATED SAYS DAVID KLASKIN PRESIDENT OF OAK RIDGE INVESTMENTS IN CHICAGO IN FACT HE ADDS THERE AREN'T MANY AREAS THAT AREN'T GETTING SATURATED IN THE IPO MARKET WINSTON FURNITURE CAME TO MARKET AT 16 JUST FOUR MONTHS AGO IT HAS FALLEN 34 CLOSING UNCHANGED ON FRIDAY AT 10 1/2 ANOTHER NEW STOCK ETHAN ALLEN INTERIORS CAME PUBLIC ON THE NEW YORK STOCK EXCHANGE IN MARCH AT 18 AND HAS DROPPED AS LOW AS 16 1/4 THE STOCK EASED 5/8 TO 19 7/8 FRIDAY DESPITE THE CLUTTER FURNITURE STOCKS ARE STILL CONSIDERED BY SOME ANALYSTS TO BE A GOOD LONGTERM INVESTMENT THIS INDUSTRY WAS BATTERED DURING A FIVEYEAR SLUMP THROUGH LAST FALL AND THEY SAY IT IS LONG OVERDUE FOR A RISE BULLS THINK CONTINUED LOW INTEREST RATES WILL ATTRACT HORDES OF HOMEOWNERS TO REFINANCE THEIR MORTGAGES GIVING THEM EXTRA CASH TO SPEND ON FURNITURE PLUS THEY POINT OUT AGING BABYBOOMERS PEOPLE 35 TO 55 YEARS OLD ARE THE BIGGEST FURNITURE CUSTOMERS BUT THESE FACTORS MIGHT NOT BOOST FURNITURE STOCKS UNTIL NEXT YEAR YOU CAN MAKE A GOOD CASE FOR THE STOCKS BUT IT'S HARD TO MAKE A LOT OF MONEY IN THE NEXT SIX TO 12 MONTHS PLAYING LONGTERM DEMOGRAPHIC TRENDS SAYS ROLAND GILLIS A SENIOR PORTFOLIO MANAGER FOR KEYSTONE CUSTODIAN FUNDS IN BOSTON WE'VE CUT BACK IN OUR FURNITURE HOLDINGS AND WE AREN'T DOING ANY OF THE IPOS IN MAY CONSUMER DEMAND COOLED AND INVESTORS WORRIED ABOUT THE POSSIBILITY OF RISING INFLATION AND INTEREST RATES SAYS WALLACE EPPERSON AN ANALYST WITH MANN ARMISTEAD & EPPERSON FURNISHINGS DIGEST IN RICHMOND VA THE PUBLICATION IS AFFILIATED WITH THE REGIONAL BROKERAGE FIRM INTERSTATE/JOHNSON LANE CONSUMER CONFIDENCE NUMBERS CAME DOWN SO FAR IN MAY THAT WE'RE BACK TO THE LEVEL WE WERE AT BEFORE THE PRESIDENTIAL ELECTION HE SAYS THE BIGGEST CONCERN CONTINUES TO BE INTEREST RATES LAST WEEK WE HAD SOME GOOD NEWS ON INFLATION AND THAT OUGHT TO CALM PEOPLE MR EPPERSON SAYS THAT AS THE STOCKS DROP INVESTORS SHOULD LOOK FOR SOME BARGAINS EVERY ONCE IN A WHILE WE GO THROUGH THIS SURGE HE SAYS MONEY MANAGERS HAVE A LOT OF IPOS FILL UP THEIR BOAT AND THEY DON'T NEED ANOTHER ONE BUT AFTER THE STOCKS HAVE FALLEN BACK IN PRICE IT MIGHT BE A GOOD TIME TO LOOK FOR OPPORTUNITIES THE PENDING IPOS SCHEDULED FOR JULY AREN'T GENERATING MUCH EXCITEMENT AT THEIR PROSPECTIVE OFFERING PRICES IF FORCED TO PICK BETWEEN RHODES AND LEVITZ TAKE RHODES SAYS CHARLES RONSON A STOCK PICKER AT NEW YORK INVESTMENT FIRM BALESTRA CAPITAL AND THE PUBLISHER OF A NEWSLETTER CALLED IPO VALUE MONITOR THAT'S FAR FROM A RESOUNDING ENDORSEMENT FOR RHODES MR RONSON WARNS WE SUGGEST THAT OUR CLIENTS AVOID THIS STOCK RHODES IS A SPECIALTY FURNITURE RETAILER FOR MIDDLEINCOME CUSTOMERS OPERATING 76 STORES IN 10 SOUTHEASTERN AND MIDWESTERN STATES RHODES HAS BEEN LOADED WITH DEBT AFTER BEING ACQUIRED IN A LEVERAGED BUYOUT IN 1988 EVEN IF THE COMPANY REDUCES ITS INTEREST EXPENSES BY PAYING OFF DEBT WITH THE OFFERING PRO FORMA EARNINGS ARE ONLY 38 CENTS A SHARE FOR THE FISCAL YEAR ENDED IN FEBRUARY THAT GIVES THE STOCK A LOFTY PRICE OF 32 TIMES PERSHARE EARNINGS HOWEVER RHODES HAS A STRONGER BALANCE SHEET AND A LOWER P/E RATIO THAN LEVITZ MR RONSON SAYS LEVITZ ANOTHER REEMERGING LEVERAGED BUYOUT IS BASED IN BOCA RATON FLA IT TOO IS A LARGE SPECIALTY RETAILER WITH A CHAIN OF 67 WAREHOUSESHOWROOMS AND 51 SATELLITE STORES IN 25 STATES LEVITZ IS KNOWN AS THE PIONEER OF THE WAREHOUSESHOWROOM CONCEPT THE 13 MILLIONSHARE OFFERING IS PLANNED AT BETWEEN 16 AND 18 GIVING IT A P/E MULTIPLE OF 200 TIMES ITS PRO FORMA EARNINGS OF NINE CENTS A SHARE FOR THE FISCAL YEAR ENDED IN MARCH ANALYSTS SAY LEVITZ MIGHT POP UP A POINT OR TWO WHEN IT HITS THE MARKET BECAUSE OF THE WIDELY KNOWN NAME AND STRONG SUPPORT FROM ITS FOUR UNDERWRITERS LED BY MORGAN STANLEY STANLEY FURNITURE ALONE AMONG THE THREE COMPANIES THAT HAVE OR ARE ABOUT TO GO PUBLIC MADE A PROFIT LAST YEAR 56 CENTS A SHARE OR 72 CENTS PRO FORMA FOR THE OFFERING THE STANLEYTOWN VA COMPANY MAKES WOOD FURNITURE TARGETED AT THE UPPERMEDIUM PRICE NICHE A HIGHER LEVEL THAN THE PRODUCTS OF RHODES AND LEVITZ STANLEY PLANS TO OFFER 15 MILLION SHARES THROUGH ITS LEAD UNDERWRITER WHEAT FIRST BUTCHER & SINGER THE NASDAQ COMPOSITE INDEX DROPPED 635 OR 091 TO 68959 DECLINING ISSUES OUTNUMBERED ADVANCERS 1407 TO 1278 ON 2499 MILLION SHARES UP FROM THURSDAY'S 2454 MILLION SHARES THE DAY'S SECOND MOST ACTIVE STOCK PRESIDENT RIVERBOAT CASINOS PLUMMETED 12 5/8 TO 31 1/4 THE STOCK DROPPED AFTER THE LOUISIANA RIVERBOAT GAMING COMMISSION ISSUED APPROVAL FOR THE REMAINING SEVEN LICENSES OUT OF A TOTAL OF 15 FOR THE OPERATION OF RIVER BOAT GAMBLING CASINOS PRESIDENT RIVERBOAT WAS DENIED ITS BID FOR APPROVAL TO OPERATE A RIVER BOAT CASINO ARGOSY GAMING SANK 4 1/2 TO 29 1/4 AND HOLLYWOOD CASINO LOST 4 TO 22 1/2 THEY ALSO FAILED TO WIN APPROVAL CASINO MAGIC TUMBLED 4 3/4 TO 73 1/2 AND GRAND CASINOS TOPPLED 5 TO 34 BUT SHARES OF THE COMPANIES THAT WERE ISSUED PRELIMINARY APPROVAL ROSE BOOMTOWN EDGED UP 3/8 TO 25 5/8 CAPITAL GAMING INTERNATIONAL JUMPED 1 3/8 TO 10 3/4 AND SKYLINK AMERICA OWNER OF ST CHARLES GAMING CO CLIMBED 5/16 TO 5 3/8 HARVEY COMICS ENTERTAINMENT ROSE TO 9 FROM ITS INITIAL OFFERING PRICE OF 7 CRUTTENDEN & CO UNDERWROTE THE 12 MILLIONSHARE OFFERING HARVEY PUBLISHES CARTOONS AND COMIC BOOKS INCLUDING CASPER THE FRIENDLY GHOST REXALL SUNDOWN JUMPED TO 16 1/4 FROM ITS DEBUT PRICE OF 14 REXALL MAKES VITAMINS NUTRITIONAL SUPPLEMENTS AND HEALTH PRODUCTS RAYMOND JAMES WAS THE LEAD UNDERWRITER THERE WAS HEAVY SELLING IN TECHNOLOGY STOCKS MICROSOFT DROPPED 3 3/8 TO 87 1/2 INTEL EASED 3/4 TO 55 3/8 AND SUN MICROSYSTEMS FELL 1 1/8 TO 28 1/8 9306210103 930621 FINANCING BUSINESS CLEVELANDCLIFFS INC CLEVELANDCLIFFS INC CLEVELAND SAID ITS BOARD AUTHORIZED THE PRORATA DIVIDEND DISTRIBUTION TO COMMON SHAREHOLDERS OF 15 MILLION SHARES OF DEBTOR LTV CORP COMMON STOCK AND A 1 A SHARE CASH DIVIDEND ON CLIFFS' COMMON STOCK BOTH ARE CONTINGENT UPON ENACTMENT OF LTV'S REORGANIZATION PLAN EXPECTED BY JUNE 30 THE DISTRIBUTION AND THE DIVIDEND ARE PAYABLE TO SHAREHOLDERS OF RECORD JULY 1 FOR EACH 100 SHARES A CLIFFS SHAREHOLDER WILL RECEIVE ABOUT 125 SHARES OF LTV COMMON STOCK AND 100 CLEVELANDCLIFFS MANAGES SIX IRON ORE MINES 9306210102 930621 ABREAST OF THE MARKET PROFIT GROWTH MAY AID IN BUOYING SHARE PRICES BY STEVEN E LEVINGSTON AND STEPHEN FRANK STAFF REPORTERS OF THE WALL STREET JOURNAL PROFITS IN THE SECOND QUARTER WHICH ENDS NEXT WEEK MAY NOT BE STELLAR BUT THEY WILL BE UP MORE THAN THE SLUGGISH ECONOMY MIGHT SUGGEST AT LEAST THAT'S THE WORD FROM SOME ANALYSTS EVEN AFTER A WEEK IN WHICH USAIR AMR AND LONGHORN STEAKS AMONG OTHERS WARNED OF LOWERTHANEXPECTED PROFITS AS A RESULT THESE ANALYSTS THINK THE STOCK MARKET WILL BE ABLE TO STAY AT CURRENT LEVELS OR EVEN EDGE HIGHER WITH INTEREST RATES PROBABLY HAVING HIT THEIR LOWS FOR THIS ECONOMIC CYCLE EARNINGS GROWTH IS BECOMING INCREASINGLY IMPORTANT AS A SUPPORT FOR STOCK PRICES AND ANALYSTS SAY EVEN WITH THE PLODDING ECONOMY AND LACKLUSTER JOB GROWTH THE EARNINGS OUTLOOK IS PROMISING JUST AS FIRSTQUARTER PROFITS CAME IN STRONGER THAN PEOPLE EXPECTED DESPITE THE WEAK ECONOMY EARNINGS IN THE SECOND QUARTER WILL OUTPERFORM THE UNDERLYING ECONOMY PREDICTS STEVEN RESNICK SENIOR INVESTMENT STRATEGIST AT COWEN & CO THOUGH MR RESNICK SEES GROSS DOMESTIC PRODUCT GROWING AT A MEAGER ANNUALIZED RATE OF 2 TO 3 IN THE QUARTER HE EXPECTS PROFITS TO EXPAND 8 FROM THE SECOND QUARTER OF LAST YEAR THE REASON CORPORATE AMERICA CONTINUES TO IMPROVE ITS PRODUCTIVITY AND COMPETITIVENESS THROUGH RESTRUCTURING MR RESNICK NOTES THAT MORE THAN HALF THE EARNINGS SURPRISES IN THE FIRST QUARTER WERE POSITIVE THOUGH THE SURPRISES MIGHT NOT BE QUITE THAT PLENTIFUL IN THE SECOND QUARTER THE TREND SEEMS TO BE THAT POSITIVE EARNINGS SURPRISES WILL BE DELIVERED BASED ON RESTRUCTURING AND MODEST ECONOMIC GROWTH MR RESNICK SAYS THAT'S A KEY FACTOR IN KEEPING THE BULL MARKET GOING THE HIGH LEVEL OF POSITIVE SURPRISES IS SIGNIFICANT MR RESNICK SAYS BECAUSE IT USUALLY OCCURS ONLY IN PERIODS IN WHICH COMPANIES CAN RAISE THEIR PRICES READILY BUT WITH THE SLOWGROWING ECONOMY FORCING COMPANIES TO KEEP A LID ON PRICE HIKES SAVVY MANAGEMENTS ARE SQUEEZING MORE PROFITS OUT OF THEIR COMPANIES BY IMPROVING EFFICIENCY MR RESNICK CONCEDES THAT HIS 8 ESTIMATE FOR EARNINGS GROWTH IS ONE PERCENTAGE POINT LESS THAN FIRSTQUARTER GROWTH THE DECLINE REFLECTS AN OVERALL DECELERATION OF PROFIT EXPANSION UNDER WAY SINCE THE FOURTH QUARTER OF 1992 HE SAYS THERE'S NO DOUBT WE'VE SEEN THE PEAK IN EARNINGS MOMENTUM IN THIS CYCLE MR RESNICK SAYS INDEED HE EXPECTS OPERATING EARNINGS FOR THE 500 COMPANIES IN STANDARD & POOR'S INDEX TO GROW 11 FOR THE FULL YEAR DOWN FROM 145 IN 1992 WITH THE ADVANCE TAPERING OFF TO 65 IN 1994 PARTLY BECAUSE OF HIGHER TAXES ANALYSTS USUALLY LOWER THEIR QUARTERLY EARNINGS PROJECTIONS AS EACH QUARTER PROGRESSES BUT THIS TIME THE REVISIONS HAVE BEEN MINIMAL BENJAMIN ZACKS EXECUTIVE VICE PRESIDENT AT ZACKS INVESTMENT RESEARCH FORECASTS PROFITS FROM CONTINUING OPERATIONS AT THE S&P 500 COMPANIES TO GROW 145 IN THE SECOND QUARTER WHICH IS JUST ONE PERCENTAGE POINT LESS THAN HIS ESTIMATE AT THE END OF MARCH HE AND OTHER ANALYSTS SUGGEST THAT THE RELATIVELY STRONG FIRSTQUARTER RESULTS PERSUADED MANY ANALYSTS TO STAND BY THEIR EARLY FORECASTS FOR SECONDQUARTER PERFORMANCE MR ZACKS SAYS THE DIRECTION OF THE STOCK MARKET IN COMING WEEKS DEPENDS ON HOW CLOSE ACTUAL EARNINGS MATCH PREDICTIONS THE STOCK MARKET WILL MOVE UP OR DOWN DEPENDING ON WHETHER EARNINGS COME IN ABOVE OR BELOW ESTIMATES HE SAYS IT WILL PRETTY MUCH DETERMINE THE MARKET'S TONE FOR THE NEXT FEW MONTHS MR ZACKS EXPECTS POSITIVE EARNINGS SURPRISES FROM COMPANIES IN THE SEMICONDUCTOR OIL BROKERAGE AND FINANCIAL SERVICES INDUSTRIES SEMICONDUCTOR COMPANIES ARE BENEFITING FROM BOTH CYCLICAL AND LONGTERM GROWTH IN DEMAND AS MORE SOPHISTICATED CHIPS ARE REQUIRED BROKERAGE AND FINANCIALSERVICES COMPANIES ARE GAINING FROM THE GROWING PARTICIPATION OF INDIVIDUAL INVESTORS IN THE FINANCIAL MARKETS HE SAYS BUT HE WARNS THAT THE OUTLOOK FOR BANKS IS LESS OPTIMISTIC AS SHORTTERM INTEREST RATES EDGE HIGHER THE WIDE AND HIGHLY PROFITABLE GAP BETWEEN SHORTTERM AND LONGTERM RATES BECOMES NARROWER WE'RE GOING TO HAVE TO SEE HOW THEY ARE AFFECTED MR ZACKS SAYS THE WIDE GAP HAS BEEN BENEFITING THEM FOR ABOUT EIGHT QUARTERS NOW STEVEN EINHORN PORTFOLIO STRATEGIST AT GOLDMAN SACHS ISN'T AS OPTIMISTIC ABOUT THE SECONDQUARTER RESULTS AND IN TURN WHAT THEY WILL DO FOR THE STOCK MARKET HE PREDICTS THAT OPERATING PROFIT AFTER WRITEOFFS WILL COME IN AT A LANGUID 5 TO 7 GAIN THE RESULT OF THE SLUGGISH US ECONOMY AND CONTINUING WEAKNESS IN EUROPE THAT LEVEL OF PROFIT GROWTH WILL TRANSLATE INTO A STAGNANT STOCK MARKET IN THE SHORT TERM HE SAYS WHAT THE EARNINGS DISAPPOINTMENT WILL BRING IS A MEANDERING STOCK MARKET THROUGH THE SUMMER HE PREDICTS NEVERTHELESS MR EINHORN SAYS HE IS IMPRESSED BY HOW WELL STOCK MARKET INVESTORS HAVE BEEN ADJUSTING TO ANNOUNCEMENTS OF EXPECTED EARNINGS SHORTFALLS IN THE SECOND QUARTER THOUGH INDIVIDUAL STOCKS SUCH AS USAIR US SURGICAL AND REEBOK WERE BATTERED ON THE NEWS THE EFFECT ON THE OVERALL MARKET HAS BEEN MUTED THE MARKET HAS HANDLED THESE DISAPPOINTMENTS QUITE WELL MR EINHORN SAYS THAT'LL BE THE CASE INDIVIDUAL STOCKS WILL BE AFFECTED BUT THE AGGREGATE MARKET WILL NOT BE AFFECTED BECAUSE OF THE OFFSETS OF LOW INTEREST RATES AND MILD INFLATION FOR THE LONGER TERM HE EXPECTS THE PROFIT PICTURE TO IMPROVE AS THE YEAR PROGRESSES THERE IS A NEARTERM VULNERABILITY TO THE STOCK MARKET BUT BEYOND THAT THE PROFIT OUTLOOK IS PLEASANT HE SAYS IT WILL BECOME APPARENT TO INVESTORS THAT WE'RE IN THE MIDST OF A LONGLASTING THOUGH MODEST RECOVERY AND THAT'S A BENEFIT TO THE STOCK MARKET LIKE OTHER ANALYSTS MR EINHORN'S ESTIMATE FOR PROFIT GROWTH HAS REMAINED FAIRLY CONSISTENT THOUGH SOMEWHAT BELOW THE CONSENSUS WE'VE EXPECTED THAT THE ECONOMY WOULD BE A BIT SLOWER THAN THE CONSENSUS THAT EUROPE'S ECONOMIES WOULD BE SLOWER AND THAT PRICING FLEXIBILITY WOULD BE CONSTRAINED HE SAYS THEREFORE WE HAVE HAD A SLOWER PERIOD OF GROWTH IN OUR FORECAST AMONG THE GROUPS MR EINHORN EXPECTS TO REPORT BETTER EARNINGS ARE THE DRUGS FINANCIAL SERVICES AND TECHNOLOGY DISAPPOINTING PROFITS MAY COME FROM SOME CYCLICAL INDUSTRIES SUCH AS LUMBER PAPER AND CAPITAL GOODS IF WE HAVE DISAPPOINTMENTS IT WILL BE IN THE CYCLICAL AREA BECAUSE THE ECONOMY DOESN'T HAVE ANY STEAM IN IT MR EINHORN SAYS STOCK PRICES PLUNGED LATE IN THE SESSION IN SELLING TIED TO THE TRIPLEWITCHING EXPIRATIONS THE DOW JONES INDUSTRIAL AVERAGE WHICH WAS MODESTLY LOWER MOST OF THE DAY PLUMMETED 25 POINTS IN THE LAST 15 MINUTES OF THE SESSION TO CLOSE AT 349477 DOWN 2712 POINTS OR 077 STANDARD & POOR'S 500STOCK INDEX DROPPED 486 TO 44368 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLUMPED 227 TO 24494 DECLINING ISSUES OUTPACED ADVANCERS 1218 TO 693 TRADING ON THE BIG BOARD TOTALED 294180000 SHARES UP FROM 230330000 THURSDAY WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 156 TO 10453 FOR THE WEEK THE DOW INDUSTRIALS WERE DOWN 03 WHILE THE S&P 500 LOST 08 AND THE BIG BOARD COMPOSITE INDEX SLIPPED 05 ANALYSTS ATTRIBUTED THE MARKET'S SWING TO TRIPLE WITCHING IN WHICH INVESTORS ADJUST THEIR STOCK FUTURES AND OPTIONS POSITIONS OPTIONS AND FUTURES ON STOCK INDEXES AND OPTIONS ON INDIVIDUAL STOCKS ALL HAD QUARTERLY EXPIRATIONS FRIDAY SHARP LOSSES AMONG DRUG STOCKS ALSO WEIGHED ON THE MARKET ALL DAY MERCK DROPPED 1 5/8 TO 37 PFIZER SKIDDED 2 5/8 TO 72 1/8 AND BRISTOLMYERS SQUIBB LOST 1 3/8 TO 59 3/4 KIDDER PEABODY ANALYST STEPHEN BUELL LOWERED HIS INVESTMENT RATING ON MERCK PFIZER AND BRISTOLMYERS MR BUELL NOW EXPECTS THE GROUP TO POST JUST 3 TO 5 ANNUAL GROWTH IN EARNINGS PER SHARE OVER THE NEXT FIVE YEARS HE HAD BEEN FORECASTING 9 GROWTH JOHNSON & JOHNSON SANK 2 7/8 TO 42 7/8 AFTER SMITH BARNEY HARRIS UPHAM ANALYST ROBERT M GOLDMAN DOWNGRADED HIS RATING ON THE COMPANY TO UNDERPERFORM MEDIUM RISK FROM NEUTRAL LOW RISK LITTON INDUSTRIES SURGED 8 1/8 OR 143 TO 65 1/8 LITTON SAID IT WILL FORM A NEW COMPANY COMPRISING ITS OILFIELD INFORMATION SERVICES AND INDUSTRIAL AUTOMATION UNITS WHICH WILL BE SPUN OFF TO LITTON SHAREHOLDERS THE NEW COMPANY WILL HAVE ABOUT 2 BILLION IN ANNUAL REVENUE LITTON POSTED REVENUE OF 57 BILLION ITS LAST FISCAL YEAR EG&G DROPPED 2 1/4 TO 19 7/8 AFTER THE COMPANY SAID ITS SECONDQUARTER EARNINGS COULD BE AS MUCH AS 10 BELOW THE 39 CENTS A SHARE IT POSTED A YEAR EARLIER THE MAKER OF PRECISION MEASUREMENT INSTRUMENTS BLAMED THE WEAK ECONOMIES IN THE US AND EUROPE NIKE PLUNGED 4 7/8 TO 62 IN OFFEXCHANGE TRADING LATE FRIDAY AFTER THE COMPANY PROJECTED LOWERTHANEXPECTED EARNINGS THE FOOTWEAR MAKER SAID ITS PROFIT FOR THE YEAR ENDING IN NEXT MAY WILL BE SIGNIFICANTLY BELOW THE 550 A SHARE IT SAID ANALYSTS HAD FORECAST ON MONDAY RIVAL REEBOK ALSO RELEASED A DISCOURAGING EARNINGS OUTLOOK NIKE ROSE 1/8 TO 67 IN REGULAR SESSION TRADING FRIDAY REEBOK LOST 1/8 TO 29 3/4 9306210101 930621 FASTFOOD FIRM IS SET TO OFFER SHARES TO PUBLIC QUICK RESTAURANTS HOPES TO PLAY TO ITS STRENGTH IN SECTIONS OF EUROPE BY MARTIN DU BOIS STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS SOME SAY THAT EUROPEANS ARE DEVELOPING A TASTE FOR AMERICANSTYLE FASTFOOD QUICK RESTAURANTS SA IS PROVIDING THEM WITH A CHANCE TO PUT THEIR MONEY WHERE THEIR MOUTH IS QUICK WITH 219 HAMBURGER OUTLETS IN FRANCE BELGIUM AND LUXEMBOURG IS EUROPE'S THIRDLARGEST FASTFOOD OPERATOR AFTER MCDONALD'S CORP AND THE BURGER KING UNIT OF BRITAIN'S GRAND METROPOLITAN PLC THE BELGIAN COMPANY PLANS TO GO PUBLIC TODAY WITH A 182 BILLION BELGIAN FRANC ABOUT 55 MILLION OFFERING THE SHARES WHICH REPRESENT A 21 STAKE IN QUICK ARE BEING OFFERED AT 1625 FRANCS EACH OR 175 TIMES 1992 PERSHARE EARNINGS QUICK WHICH IS 57OWNED BY THE BELGIAN RETAILER GIB SA SAID THE RELATIVELY LOFTY PRICE REFLECTS AN AGGRESSIVE EXPANSION STRATEGY THE COMPANY HOPES TO DOUBLE SALES BY THE YEAR 2000 AND FORECASTS ANNUAL PROFIT GROWTH OF MORE THAN 20 QUICK PLANS TO BECOME A VERY STRONG REGIONAL OPERATOR IN EUROPE THOMAS MEISSER QUICK'S CHIEF EXECUTIVE TOLD JOURNALISTS WE BELIEVE WE CAN GRAB MARKET SHARE FROM TRADITIONAL RESTAURANTS MANY BELGIAN ANALYSTS AND SOME LONDON BROKERS RATED QUICK AS A GOOD THOUGH SPECULATIVE MIDTERM BUY IT COULD DO VERY WELL IN TWO TO THREE YEARS' TIME SAID ONE LONDON ANALYST AMID THE CURRENT DEARTH OF INITIAL OFFERINGS HE ADDED THE BRUSSELSQUOTED STOCK COULD ATTRACT INTEREST FROM GROWTH MUTUAL FUNDS LOUIS FRERE GIB'S FINANCE DIRECTOR AND A QUICK BOARD MEMBER SAID THE REACTION FROM ANALYSTS AND INVESTORS INVITED TO FRIDAY'S PRESENTATION WAS ENTHUSIASTIC I HAVE NO DOUBT THE OFFERING WILL BE OVERSUBSCRIBED MR FRERE SAID AFTER THE PRESENTATIONS THERE'S SUCH A FANCY FOR THIS STOCK THAT OUR ONLY FEAR IS THAT THE PRICE WILL SURGE IN A CRAZY WAY SOME ANALYSTS ADDED A DOSE OF CAUTION THE OFFERING PRICE WHICH WOULD GIVE QUICK A TENTATIVE MARKET CAPITALIZATION OF ABOUT 88 BILLION BELGIAN FRANCS APPEARS A BIT STEEP JUDGED ONE LONDONBASED FOOD ANALYST IN LIGHT OF THE EUROPEAN RECESSION HE ADDED TO EXPECT HUGE GROWTH IN THE FRENCH MARKET IS A BIT AMBITIOUS BUT QUICK IS CONFIDENT THE GROWTH POTENTIAL IS THERE THE BELGIAN COMPANY NOTES THAT WESTERN EUROPE HAS ONLY ONE FASTFOOD HAMBURGER RESTAURANT FOR EVERY 155000 RESIDENTS COMPARED WITH ONE FOR EVERY 5500 RESIDENTS IN THE US TO FINANCE ITS EXPANSION QUICK CARRIED OUT A 17 BILLION BELGIAN FRANC CAPITAL INCREASE LAST YEAR MR FRERE SAID IT WOULD PROBABLY SEEK A FURTHER CAPITAL INCREASE IN TWO OR THREE YEARS BUT THAT GIB PLANS TO MAINTAIN MAJORITY OWNERSHIP QUICK IS FOLLOWING A DIFFERENT STRATEGY THAN MCDONALD'S AND BURGER KING WHICH RESPECTIVELY HAVE 1422 AND 393 OUTLETS THROUGHOUT EUROPE INSTEAD OF BUILDING A PANEUROPEAN PRESENCE QUICK PLANS TO STICK TO THE MARKETS IT KNOWS BEST BELGIUM FRANCE AND LUXEMBOURG QUICK OFFICIALS SAID UNSUCCESSFUL ATTEMPTS IN THE PAST TO ENTER GERMANY BRITAIN AND ITALY HAVE TAUGHT THEM SOME USEFUL LESSONS QUICK HAS A 67 MARKET SHARE IN BELGIUM COMPARED WITH 22 FOR MCDONALD'S COMPANY OFFICIALS SAID IN FRANCE QUICK HAS 30 OF THE MARKET COMPARED WITH 65 FOR ITS US RIVAL TESTING THE WATERS GIB BELGIUM'S LARGEST SUPERMARKET OPERATOR TESTED THE FASTFOOD WATERS WITH A QUICK RESTAURANT NEAR ANTWERP IN 1971 IT TOOK THE COMPANY SEVERAL YEARS BEFORE GETTING THE FORMULA RIGHT AND QUICK OPENED ITS FIRST RESTAURANT IN FRANCE IN 1980 UNDER A JOINT VENTURE WITH FRANCE'S CASINO SA SUPERMARKET COMPANY CASINO HAS DECIDED TO LEAVE THE FASTFOOD BUSINESS AS PART OF ITS STRATEGY OF FOCUSING ON ITS CORE RETAIL ACTIVITIES THE QUICK SHARES BEING OFFERED ARE OWNED BY CASINO WHICH IS DIVESTING ITS ENTIRE 21 STAKE IN QUICK PROCEEDS OF THE INITIAL OFFER WILL GO TO THE FRENCH COMPANY FOR THE YEAR ENDED JAN 31 1993 QUICK REPORTED PROFIT OF 3697 MILLION BELGIAN FRANCS AFTER TAX BUT BEFORE EXTRAORDINARY ITEMS THAT REPRESENTS AN 89 INCREASE FROM A YEAR EARLIER QUICK OFFICIALS ATTRIBUTED THE SURGE TO A TURNAROUND AT ITS FRENCH OPERATIONS WHICH POSTED A LOSS IN FISCAL 1992 QUICK DIDN'T DISCLOSE NET EARNINGS SALES FOR THE YEAR ROSE 18 TO 1323 BILLION FRANCS FROM 112 BILLION FRANCS EXCLUDING SALES AT FRANCHISED QUICK RESTAURANTS SALES EDGED UP 1 TO 1066 BILLION FRANCS 9306210100 930621 MARKETING & MEDIA NIKE CUTS ESTIMATE FOR FISCAL '94 NET STOCK FALLS 73 BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL NIKE INC SAID IT JUST WON'T DO IT AS FAR AS ANALYSTS' EXPECTATIONS FOR FISCAL 1994 ARE CONCERNED CITING CAUTIOUS ATHLETIC SHOE ORDERING FOR THE HOLIDAY SEASON NIKE SAID FRIDAY THAT EARNINGS FOR THE YEAR ENDING MAY 31 1994 WOULD FALL SIGNIFICANTLY BELOW ANALYSTS' MEAN EXPECTATIONS OF 550 A SHARE THE BEAVERTON ORE COMPANY'S FORECAST CAUSED ITS STOCK PRICE TO FALL SHARPLY IN LATE COMPOSITE NEW YORK STOCK EXCHANGE TRADING NIKE CLOSED WITH A LOSS OF 73 DOWN 4875 AT 62 CHAIRMAN PHILIP H KNIGHT SAID THAT BOOKINGS FOR THE BACKTOSCHOOL SEASON WERE STRONG AND CURRENT SALES WERE GOOD BUT THAT DOMESTIC RETAILERS WERE SKITTISH ABOUT THE FOLLOWING PERIOD OUR PRODUCTS CONTINUE TO ENJOY INCREASING CONSUMER DEMAND AROUND THE WORLD AND WE BELIEVE OUR POSITION IN ALL KEY CATEGORIES IS STRONG HE SAID IN A STATEMENT BUT WE CANNOT EXPECT A RETURN TO HIGHER GROWTH RATES UNTIL ECONOMIES IN EUROPE AND THE US SHOW SUSTAINED IMPROVEMENT ANALYSTS SAID THE STATEMENT WAS UNEXPECTED ESPECIALLY SINCE A FEW WEEKS AGO THE COMPANY TOLD FORECASTERS THAT THE US OUTLOOK WAS FAVORABLE NIKE HAS WOKE UP TOO LATE TO THE GLOBAL ECONOMIC SLUGGISHNESS SAID GARY JACOBSON AN ANALYST AT KIDDER PEABODY & CO HE SAID HE WAS REDUCING HIS ESTIMATE FOR FISCAL 1994 TO 5 A SHARE FROM 525 THEY SHOULD HAVE WOKE UP A YEAR AGO THEY SHOULD NOT HAVE THOUGHT THAT THEY WERE IMMUNE NIKE IS THE WORLD'S LARGEST MAKER OF ATHLETIC FOOTWEAR IT SPRINTED PAST ITS BIGGEST RIVAL REEBOK SEVERAL YEARS AGO WITH A SAVVY ADVERTISING BLITZ FEATURING BASKETBALL STAR MICHAEL JORDAN DOUBLING ITS REVENUE AND EARNINGS FROM FISCAL 1990 TO FISCAL 1992 ITS STOCK ALSO SOARED FROM A LOW OF 26 A SHARE IN LATE 1990 TO A HIGH OF 90 IN LATE 1992 BUT THE PRICE HAS BEEN DWINDLING EVER SINCE NIKE HAS NOT YET REPORTED ITS EARNINGS FOR THE FOURTH QUARTER OF FISCAL 1993 WHICH ENDED MAY 31 BUT ANALYSTS SAID THE MEAN ESTIMATE OF 105 A SHARE WAS STILL ON TARGET FOR FISCAL 1993 THE MEAN FORECAST IS 481 FOR THE NINEMONTH PERIOD THE COMPANY'S EARNINGS WERE 2881 MILLION OR 374 A SHARE ON SALES OF 295 BILLION ALICE RUTH AN ANALYST AT MONTGOMERY SECURITIES SAID NIKE TOLD HER THAT THE COMPANY HAD BEEN EXPECTING 10 GROWTH FOR THE FIRST HALF OF FISCAL 1994 WITH ACCELERATION IN THE SECOND BUT SHE SAID ESTIMATES ARE NOW THAT THE SECOND HALF WILL BE ESSENTIALLY FLAT IT'S JUST NOT SURPRISING SHE SAID THE CONSUMER IS EXTREMELY CAUTIOUS THE RETAILER IS EQUALLY SO MR KNIGHT SAID THE COMPANY ALREADY HAD ADJUSTED ITS VOLUME TO REFLECT ORDERS BUT WOULD OTHERWISE STAY THE COURSE WE BELIEVE THE BEST RESPONSE TO THESE SHORTTERM ECONOMIC CONDITIONS IS TO CONTINUE OUR RELENTLESS STRATEGY OF INVESTING HEAVILY IN EUROPE AND OTHER DEVELOPING INTERNATIONAL MARKETS TO STRENGTHEN THE NIKE BRAND AND TO GAIN MARKET SHARE HE SAID BUT MR JACOBSON SAID THAT THERE WAS A SHIFT UNDER WAY IN THE US MARKET AWAY FROM EXPENSIVE ATHLETIC SHOES TO MORE MODERATELY PRICED FOOTWARE HIGHPRICED BELLSANDWHISTLE BASKETBALL AND RUNNING STUFF JUST ISN'T SELLING LIKE IT WAS HE SAID 9306210099 930621 CERUS'S WOES CREATE TREMORS AT SPANISH UNIT TWO COFIR SHAREHOLDERS FEAR DE BENEDETTI COMPANY IS HINDERING SUBSIDIARY BY CARLTA VITZTHUM SPECIAL TO THE WALL STREET JOURNAL MADRID THE FALLOUT FROM ITALIAN BUSINESSMAN CARLO DE BENEDETTI'S FINANCIAL TROUBLES IN FRANCE IS BEING FELT AS FAR AWAY AS SPAIN THE DEEP PROBLEMS PLAGUING CERUS SA THE HOLDING COMPANY FOR MR DE BENEDETTI'S INTERESTS IN FRANCE APPEAR TO BE SPILLING OVER TO ITS SPANISH UNIT CORP FINANCIERA REUNIDA SA OR COFIR THE ITALIAN BUSINESSMAN'S MOST PROFITABLE EUROPEAN FINANCIAL HOLDING CONCERNED THAT COFIR MAY BE DRAGGED DOWN BY ITS PARENT COMPANY TWO LEADING SPANISH SHAREHOLDERS SAY THEY MAY SELL THEIR STAKE IF THEY'RE NOT GIVEN A BIGGER SAY ON HOW TO RUN THE HOLDING COMPANY SPOKESMEN FOR BANCO BILBAO VIZCAYA AND BANCO ZARAGOZANO WHICH TOGETHER OWN 31 OF COFIR SAY THEY FEAR CERUS WITH 42 OF THE COMPANY IS SUCKING UP MONEY THAT SHOULD GO TOWARD PROFITABLE INVESTMENTS IN SPAIN IN FACT THE BANKS CLAIM THERE ARE INDICATIONS THAT COFIR HAS EXTENDED LOANS TO DE BENEDETTI COMPANIES PARTICULARLY IN SWITZERLAND THEY DECLINE HOWEVER TO GIVE MORE DETAILS WE WANT TO PLAY A BIGGER ROLE IN MANAGEMENT TO MAKE IT MORE ACTIVE SAYS A SPOKESMAN FOR BBV THE BIG SPANISH COMMERCIAL BANK THAT OWNS 18 OF COFIR WE ASKED MR DE BENEDETTI TO INVEST IN MORE SPANISH COMPANIES BUT HE DIDN'T WANT TO WHAT WE DON'T WANT IS FOR THAT MONEY TO FINANCE MR DE BENEDETTI'S OTHER INTERESTS CREATED IN 1987 DURING THE HEIGHT OF SPAIN'S ECONOMIC BOOM COFIR HAD A BRILLIANT START INVESTING ITS MONEY IN A WIDE RANGE OF SPANISH INDUSTRIES AND SERVICES WITH SHARE PRICES ON THE RISE COFIR MADE A KILLING BY BUYING UP COMPANIES AND SELLING THEM BUT THE SLOWDOWN OF THE SPANISH ECONOMY COUPLED WITH GROWING DIFFICULTIES AT CERUS AFTER THE FRENCH HOLDING COMPANY'S FAILED BID FOR SOCIETE GENERALE DE BELGIQUE LEFT IT HEAVILY IN DEBT BROUGHT AN END TO COFIR'S AGGRESSIVE FORAY INTO THE SPANISH MARKET TWO YEARS AGO PROBLEMS AT CERUS WERE COMPOUNDED LAST YEAR BY LOSSES AT ITS BANKING UNIT BANQUE DUMENIL LEBLE AS WELL AS POOR MARKET CONDITIONS THAT HINDERED THE SALE OF ASSETS CONSEQUENTLY NET LOSSES AT THE CERUS GROUP WIDENED TO 154 BILLION FRENCH FRANCS 2761 MILLION IN 1992 FROM 131 BILLION FRANCS A YEAR EARLIER A SPOKESMAN FOR COFIR ACKNOWLEDGES THAT THE HOLDING COMPANY DEPOSITED 3 BILLION PESETAS 237 MILLION AT DUMENIL LEBLE LAST YEAR BUT WITHDREW THE MONEY AFTER BBV AND ZARAGOZANO PROTESTED THE MOVE WE USED PROFESSIONAL CRITERIA WHEN DECIDING TO DEPOSIT THESE FUNDS IN DUMENIL LEBLE THE COFIR SPOKESMAN SAID NOW A LARGE PART OF OUR FUNDS ARE AT BBV AND ZARAGOZANO COFIR NOTES THAT NET PROFIT AT COFIR CLIMBED TO 26 BILLION PESETAS IN 1992 FROM 103 BILLION A YEAR EARLIER AND SHOULD REMAIN FLAT THIS YEAR NEVERTHELESS BBV AND ZARAGOZANO ARE DISAPPOINTED BY COFIR'S PERFORMANCE BOTH BANKS HAD ENVISIONED COFIR AS A VEHICLE FOR INVESTING IN PRIVATE SPANISH COMPANIES THAT COULD LATER BE GROOMED FOR A STOCK MARKET LISTING INSTEAD IT'S DONE PRACTICALLY NOTHING IN THE LAST TWO YEARS EXCEPT PLACE ITS LIQUIDITY IN TREASURY BILLS COMPLAINS A SPOKESMAN FOR ZARAGOZANO COFIR ARGUES THAT IT'S MERELY BIDING ITS TIME WAITING FOR OPPORTUNITIES TO CROP UP WITH AN IMPROVEMENT IN THE SPANISH ECONOMY A STRATEGY THAT'S BEEN ADOPTED AT MR DE BENEDETTI'S OTHER HOLDINGS AS WELL WITH INTEREST RATES IN SPAIN AMONG THE HIGHEST IN EUROPE INVESTMENTS IN PUBLIC DEBT ISSUES AND OTHER FIXEDINTEREST INCOME MAKE MORE SENSE THAN EQUITIES IT SAYS COFIR'S CONSERVATIVE STANCE HIGHLIGHTS MANY OF THE SHORTCOMINGS OF FINANCIAL HOLDING COMPANIES TODAY PARTICULARLY IN SPAIN WHERE INDUSTRIAL CYCLES HAVE THE DEEP TROUGHS AND THE HIGH CRESTS THAT CONVERT THIS TYPE OF CONGLOMERATE INTO WINNERS IN TIMES OF PLENTY AND LOSERS DURING A RECESSION MEANWHILE THE FIGHT OVER CONTROL OF COFIR'S MANAGEMENT CONTINUES AFTER PRESSING FOR A CHANGE IN INVESTMENT STRATEGY ZARAGOZANO CHAIRMAN JOSE RAMON ALVAREZ RENDUELES THE NONEXECUTIVE CHAIRMAN OF COFIR AND BOARD MEMBERS REPRESENTING BBV AND ZARAGOZANO RESIGNED FROM COFIR IN JANUARY CONCEDING DEFEAT IN THEIR ENDEAVORS THE BANKS ANNOUNCED LAST MONTH THEIR DESIRE EITHER TO SELL THEIR STAKE IN COFIR OR TO DISTRIBUTE THE HOLDING COMPANY'S LIQUID FUNDS AMONG SHAREHOLDERS AFTER AN ANGRY EXCHANGE OF WORDS A SHARESWAP AGREEMENT BETWEEN CERUS AND THE TWO OTHER SHAREHOLDERS WHICH WOULD HAVE OFFERED THE BANKS A WAY OUT OF THE HOLDING BROKE DOWN OVER DISAGREEMENTS ON SHARE PRICES THEN AT THE SHAREHOLDERS' ANNUAL MEETING THIS MONTH 68 OF THOSE PRESENT TURNED DOWN THE BANKS' PROPOSALS TO CHANGE VOTING PROCEDURES TO GIVE THE BANKS A GREATER SAY IN MANAGEMENT AND TO REDUCE CAPITAL WHICH ANALYSTS SAY COULD HAVE LED TO THE COMPANY'S LIQUIDATION RIGHT NOW WE'RE STILL TRYING TO NEGOTIATE AN AGREEMENT IF THAT DOESN'T WORK WE'LL GET OUT SAYS THE ZARAGOZANO SPOKESMAN 9306210098 930621 BUSINESS BRIEF PROMOS COS INVESTMENT OF 82 MILLION IS SET FOR CASINO COMPLEX PROMUS COS MEMPHIS TENN SAID IT WILL INVEST 82 MILLION IN A NEW RIVERBOAT CASINO AND ENTERTAINMENT COMPLEX ON THE MISSOURI RIVER NEAR ST LOUIS HARRAH'S PROMUS'S CASINO DIVISION WILL OWN AND OPERATE THE CASINO TO BE LOCATED IN MARYLAND HEIGHTS MO HARRAH'S INTENDS TO FORM A JOINT VENTURE WITH A SUBSIDIARY OF SVERDRUP CORP A ST LOUIS DESIGN AND CONSTRUCTION COMPANY TO RUN THE ENTERTAINMENT COMPLEX ADJACENT TO THE CASINO SEPARATELY HARRAH'S SAID IT HAS DECIDED AGAINST RUNNING A CASINO ON BILOXI'S BACK BAY IN D'LBERVILLE MISS THE COMPANY CITED POTENTIAL CASINO OVERBUILDING IN THE AREA 9306210097 930621 BUSINESS BRIEF SUMITOMO LIGHT METAL INDUSTRIES JAPANESE COMPANY REPORTS PRETAX LOSS FOR FISCAL YEAR SUMITOMO LIGHT METAL INDUSTRIES LTD A MAJOR JAPANESE ALUMINUM ROLLER POSTED A CONSOLIDATED PRETAX LOSS OF 163 BILLION YEN 152 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 A YEAR EARLIER SUMITOMO HAD A PRETAX PROFIT OF 402 BILLION YEN SALES FOR THE LATEST FISCAL YEAR FELL 54 TO 23022 BILLION YEN FROM 24344 BILLION YEN NONOPERATING INCOME SUCH AS INTEREST PAYMENTS DWINDLED AS JAPAN'S INTEREST RATES FELL THE COMPANY SAID WHILE MARKETING AND MANAGEMENT COSTS ROSE SUMITOMO FORECAST A RETURN TO PROFITABILITY IN THE CURRENT FISCAL YEAR IT EXPECTS PRETAX PROFIT OF 1 BILLION YEN WITH SALES RISING 42 TO 240 BILLION YEN 9306210096 930621 BUSINESS BRIEF MIRAMAR HOTEL & INVESTMENT CO HOLDERS' PLAN TO SELL STAKE OF 35 PUTS BID IN DOUBT THE TWO LARGEST SHAREHOLDERS OF MIRAMAR HOTEL & INVESTMENT CO HONG KONG WILL SELL A COMBINED 35 OF THE TAKEOVER TARGET TO HENDERSON INVESTMENT LTD THROWING INTO DOUBT THE LIKELIHOOD CHEUNG KONG HOLDINGS LTD AND CITIC PACIFIC LTD CAN SUCCEED IN THEIR JOINT BID THE AGREEMENT THAT YEUNG CHI SHING ESTATES LTD WILL SELL 1133 MILLION MIRAMAR SHARES ABOUT 20 OF THE SHARE CAPITAL AND THAT GOLDBERG CORP WILL DISPOSE OF 683 MILLION SHARES OR 12 OF MIRAMAR WAS ANNOUNCED TO THE HONG KONG STOCK EXCHANGE FRIDAY HENDERSON INVESTMENT A UNIT OF HENDERSON LAND DEVELOPMENT CO WILL BUY THE SHARES ON JULY 7 AT AN UNDISCLOSED PRICE EARLIER FRIDAY CHEUNG KONG AND CITIC ANNOUNCED THAT THEY HAD LIFTED THEIR JOINT BID FOR MIRAMAR BY ONE HONG KONG DOLLAR 1293 CENTS A SHARE OR 65 TO HK 1650 A SHARE THE COMPANIES ALSO ARE OFFERING HK 950 FOR THE PROPERTY AND HOTEL COMPANY'S WARRANTS 9306210095 930621 DEFINITIVE ACCORD SIGNED ON PURCHASE OF ROYAL TRUSTCO BY SUZANNE MCGEE STAFF REPORTER OF THE WALL STREET JOURNAL TORONTO ROYAL TRUSTCO LTD AND ROYAL BANK OF CANADA SAID THEY SIGNED DEFINITIVE ACQUISITION AND FINANCING AGREEMENTS RELATED TO ROYAL BANK'S PROPOSAL TO PURCHASE ROYAL TRUSTCO'S CANADIAN AND INTERNATIONAL OPERATING UNITS THE TWO FINANCIAL INSTITUTIONS SAID THE TERMS AND CONDITIONS OF THE FINAL AGREEMENTS CONFORM IN ALL MATERIAL RESPECTS WITH THOSE IN THE EARLIER AGREEMENTS BUT OFFICIALS DECLINED TO PROVIDE FURTHER DETAILS AN INFORMATION CIRCULAR WILL BE MAILED TO ROYAL TRUSTCO SHAREHOLDERS AROUND THE MIDDLE OF JULY CONTAINING COMPLETE INFORMATION AND ROYAL TRUSTCO SHAREHOLDERS AND DEBTHOLDERS WILL BE ASKED TO VOTE ON THE TRANSACTION AT A SPECIAL MEETING IN AUGUST MONTREALBASED ROYAL BANK HAS AGREED TO ACQUIRE THE ROYAL TRUSTCO ASSETS FOR ABOUT 165 BILLION CANADIAN DOLLARS US129 BILLION IN RETURN ROYAL TRUSTCO AGREED TO USE THE PROCEEDS OF THE SALE AND ITS OWN CASH RESERVES TO REPURCHASE A LOAN PORTFOLIO FROM THE BANK FOR ABOUT C32 BILLION JAMES MILLER PRESIDENT OF ROYAL TRUSTCO SAID THE COMPANY IS WELL ON TRACK TO RAISING THE C906 MILLION IN CASH IT NEEDS TO COMPLETE THAT PART OF THE TRANSACTION CLEARING THE WAY FOR THE TRANSACTION ROYAL TRUSTCO SHAREHOLDERS APPROVED AT THE COMPANY'S ANNUAL MEETING FRIDAY A CHANGE IN THE COMPANY'S NAME TO GENTRA INC AS PART OF THE AGREEMENT WITH ROYAL BANK ROYAL TRUSTCO HAD AGREED TO CHANGE THE COMPANY'S NAME TO SOMETHING NOT CONTAINING THE WORD ROYAL MR MILLER TOLD SHAREHOLDERS AT THE STORMY FOURHOUR MEETING THAT THE COMPANY CAN'T PREDICT WHETHER THERE WILL BE ANY VALUE REMAINING FOR COMMON AND PREFERRED SHAREHOLDERS OF ROYAL TRUSTCO ONCE THE ROYAL BANK TRANSACTION IS COMPLETED HE SAID GENTRA WILL BE LEFT WITH LOANS WITH A BOOK VALUE OF ABOUT C36 BILLION AND DEBT OF ABOUT C25 BILLION WHICH HE SAID IT WILL REPAY IN AN ORDERLY FASHION THERE ARE MANY VARIABLES WHICH WILL AFFECT THE ULTIMATE VALUE OF THE RETAINED ASSETS HE ADDED TORONTOBASED ROYAL TRUSTCO 48OWNED BY TRILON FINANCIAL CORP A HOLDING COMPANY CONTROLLED BY TORONTO FINANCIERS PETER AND EDWARD BRONFMAN HAS BEEN STRUGGLING TO COPE WITH HEAVY LOSSES RESULTING FROM ITS COMMERCIAL LENDING OPERATIONS IT AGREED TO THE ROYAL BANK TRANSACTION AFTER FAILING IN EFFORTS TO FIND A NEW SHAREHOLDER TO INVEST AS MUCH AS C500 MILLION IN NEW EQUITY 9306210094 930621 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEANS WILL HAVE TO PAY MORE FOR HEALTH CARE OVER THE NEXT FIVE YEARS AS MEDICAL COSTS OUTSTRIP INFLATION AND ECONOMIC GROWTH A 10COUNTRY STUDY BY TWO CONSULTING FIRMS FOUND GOVERNMENTS UNABLE TO AFFORD HIGHTECH CARE FOR AGING POPULATIONS WILL CUT TREATMENT PROVISIONS SAID THE REPORT BY ANDERSEN CONSULTING AND BURSTON MARSTELLER THE STUDY POLLED 2752 HEALTH SPECIALISTS IN BELGIUM BRITAIN DENMARK FRANCE GERMANY ITALY THE NETHERLANDS NORWAY SPAIN AND SWEDEN THE PROPORTION OF TOTAL HEALTHCARE SPENDING ACCOUNTED FOR BY THE PUBLIC SECTOR IS EXPECTED TO DECREASE IN ALL 10 COUNTRIES WHILE FUNDING FROM PRIVATE INSURANCE COMPANY PROGRAMS AND HOUSEHOLD SPENDING IS EXPECTED TO INCREASE THE REPORT SAID HEALTHCARE SPENDING COULD RISE TO 788 OF THE COUNTRIES' GROSS DOMESTIC PRODUCT BY 1998 FROM 749 IN 1990 GOVERNMENTS WILL CUT COSTS SUCH AS FOR DRUGS BY PROMOTING GENERICS AND MAY REDUCE BENEFITS HOSPITALS MAY ELIMINATE SOME BEDS AS THE CHRONICALLY ILL ARE TREATED IN LESS EXPENSIVE SETTINGS THE DIRECTOR OF THE AGENCY THAT MANAGES HUNGARY'S STRATEGIC INDUSTRIES AND ASSETS RESIGNED FOLLOWING REVELATIONS THAT HIS 130000 SALARY IS PAID BY THE HUNGARIANAMERICAN ENTERPRISE FUND THE FUND IS ONE OF SEVERAL US GOVERNMENTSPONSORED PROJECTS SET UP IN 1989 TO PROMOTE PRIVATE ENTERPRISE IN EASTERN EUROPE BUT WHOSE ACTIVITIES ARE NOW UNDER SCRUTINY BY THE US CONGRESS THE PAY DISCLOSURE RAISED QUESTIONS ABOUT POSSIBLE INFLUENCEPEDDLING BY THE FUND IN HUNGARY'S ECONOMIC POLICYMAKING THE OFFICIAL PAL TELEKI SAID MEDIA ATTENTION ABOUT HIS PAY AT THE AGENCY KNOWN AS THE AVRT MADE HIS WORK IMPOSSIBLE OFFICIALS AT THE FUND DEFENDED THE SALARY SUBSIDY SAYING IT IS A COMMON PRACTICE REVENUE FROM CHINA'S DOMESTIC TOURISM IN THE PAST EIGHT YEARS JUMPED 18 ANNUALLY AS LIVING STANDARDS IMPROVED LAST YEAR ABOUT 330 MILLION CHINESE A THIRD OF THEM FARMERS FROM THE BOOMING EASTERN AND SOUTHERN REGIONS VISITED THE NATION'S TOURIST ATTRACTIONS AND SPENT 25 BILLION YUAN 437 BILLION THE CHINA DAILY SAID THE 1992 TOURIST TOTAL REPRESENTED 28 OF THE 117 BILLION POPULATION POLAND RELAXED REGULATIONS TO LET FOREIGN INVESTORS TRANSFER ABROAD PROFITS ON GOVERNMENT BONDS AND TREASURY BILLS WITHOUT CENTRAL BANK AUTHORIZATION THE CHANGES ALSO MAKE ONEYEAR GOVERNMENT BONDS AVAILABLE TO FOREIGN INVESTORS WHO PREVIOUSLY WERE LIMITED TO SHORTTERM TREASURY BILLS AND THREEYEAR BONDS THE ONEYEAR BONDS' FLOATING RATE COVERS INFLATION PROJECTED AT 32 THIS YEAR AND ADDS 5 INTEREST THE GOVERNMENT EXPECTS THE RULE CHANGES WILL HELP FINANCE THIS YEAR'S 48 BILLION BUDGET DEFICIT BY ALLOWING FREER FOREIGN ACCESS TO THE SECURITIES MARKET ONE OF THE FORMER SOVIET UNION'S BIGGEST INDUSTRIAL COMPLEXES THE URALS HEAVY ENGINEERING PLANT KNOWN AS URALMASH DISCLOSED THE APRIL SALE OF 28 OF ITS SHARES TO PRIVATE BUYERS WITH MANAGEMENT CONTROLLING THE REST THE RUSSIAN MACHINERY AND MILITARY HARDWARE MAKER WITH 30000 WORKERS IN THE URAL MOUNTAIN CITY OF YEKATERINBURG SOLD AN 18 STAKE TO THE JOINTSTOCK COMPANY BIOPROCESS THE PRIVATIZATION CAME A MONTH AFTER PRESIDENT BORIS YELTSIN ORDERED STATE ENTERPRISES TO SPEED UP REORGANIZATIONS AND STOCK SALES BRITAIN AND CHINA AGREED TO BUILD A THIRD TUNNEL UNDER HONG KONG'S VICTORIA HARBOR ADVANCING ECONOMIC ISSUES DESPITE THE TWO COUNTRIES' DISPUTE ABOUT DEMOCRATIC REFORMS IN THE BRITISH COLONY BEFORE IT REVERTS TO CHINESE RULE IN 1997 THE 833 MILLION TUNNEL TO LINK HONG KONG ISLAND WITH A PLANNED AIRPORT ON THE KOWLOON PENINSULA REQUIRES APPROVAL BY THE TERRITORY'S LEGISLATURE THE HARBOR TUNNEL TO BE FINANCED WITH PRIVATE FUNDS IS ONE OF 10 ROAD BRIDGE RAIL AND LANDFILL PROJECTS RELATED TO THE NEW 21 BILLION AIRPORT OF US COMPANIES WITH OPERATIONS ABROAD 35 BEEFED UP SAFETY AND SECURITY PROGRAMS FOR EXPATRIATES OVER THE PAST FIVE YEARS EVEN AS GLOBAL TERRORISM LAST YEAR FELL TO THE LOWEST LEVEL SINCE 1975 A SURVEY BY ROCHESTER WIS MANAGEMENT CONSULTANTS RUNZHEIMER INTERNATIONAL OF COMPANIES THAT ASSIGN EMPLOYEES TO POTENTIALLY DANGEROUS LOCATIONS FOUND 53 PROVIDED BRIEFINGS BY WORKERS WITH EXPERIENCE ABROAD AND 19 BY CONSULTANTS WHILE 5 LET EMPLOYEES GET THEIR OWN COACHING AND 23 DIDN'T OFFER SUCH HELP FOR SECURITY ARRANGEMENTS 29 OF RESPONDENTS PAID FOR HOME ALARM SYSTEMS 16 FOR PRIVATE SECURITY GUARDS AND 27 FOR BOTH WHILE 12 DIDN'T PAY FOR ANY SECURITY ONEFOURTH EMPLOYED A SECURITY EXECUTIVE WITH RESPONSIBILITY FOR EXPATRIATES RUNZHEIMER ATTRIBUTED THE INTENSIFIED SAFETY EFFORTS TO INSTABILITY IN THE FORMER SOVIETLED EAST BLOC SINCE ITS COLLAPSE WHICH LEFT GOVERNMENTS OF LESSDEVELOPED COUNTRIES TO THEIR OWN DEVICES WITH LESS GUIDANCE AND LESS MONEY A TOKYO COURT ORDERED A BUILDING MAINTENANCE COMPANY TO PAY EMPLOYEES FOR THE EIGHT HOURS THEY WERE ALLOWED TO SNOOZE DURING 24HOUR SHIFTS RULING THAT THE REQUIRED STANDBY DUTY IN SLEEPING ROOMS COUNTED AS WORKING HOURS ZIMBABWE REPORTED A SHARP RISE IN ELEPHANT POACHING WITH 12 ANIMALS KILLED FOR THEIR TUSKS THIS MONTH BRINGING THIS YEAR'S TOTAL TO 40 9306210093 930621 INTERNATIONAL CHINA'S YUAN DECLINED BY 39 LAST WEEK IN SHANGHAI TRADING SPECIAL TO THE WALL STREET JOURNAL HONG KONG CHINA'S CURRENCY LOST 39 OF ITS VALUE AT SHANGHAI'S SWAP MARKET LAST WEEK AND IS DOWN 35 SINCE CONTROLS AT THE EXCHANGE CENTERS WERE RELAXED JUNE 1 AT THE SHANGHAI SWAP CENTER CHINA'S BIGGEST THE DOLLAR ENDED TRADING FRIDAY AT 1091 YUAN COMPARED WITH 105 YUAN A WEEK EARLIER AND 81 YUAN JUST BEFORE EXCHANGE CONTROLS WERE LIFTED ON FRIDAY THE DOLLAR OPENED AT 109020 YUAN ITS INTRADAY LOW IT FINISHED THE SESSION AT THE INTRADAY HIGH MEANWHILE AT THE OFFICIAL RATE POSTED DAILY BY THE PEOPLE'S BANK OF CHINA A DOLLAR WAS BUYING 57358 YUAN FRIDAY UP NARROWLY FROM 56957 YUAN A WEEK AGO SWAP CENTERS ARE OPEN TO BUSINESSES WITH LARGE TRANSACTIONS WHILE SMALLER TRADES ARE DONE AT THE OFFICIAL RATE 9306210092 930621 INTERNATIONAL MAASTRICHT FACES GERMAN LEGAL TEST IN SUIT OVER SCOPE OF TREATY'S POWERS BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL MUNICH GERMANY MANFRED BRUNNER FLICKS THROUGH A COPY OF THE GERMAN CONSTITUTION PICKS UP A PEN AND CAREFULLY UNDERLINES FOUR WORDS IN ARTICLE 20 THEY READ GERMANY IS A STATE THAT MAY SOUND OBVIOUS BUT THOSE WORDS HAVE BECOME THE MOST RECENT THE MOST UNEXPECTED AND PERHAPS THE BIGGEST OBSTACLE TO THE EUROPEAN COMMUNITY'S PLANS FOR POLITICAL AND MONETARY UNION THEY PROVIDE THE STARTING POINT FOR A LEGAL SUIT THAT MR BRUNNER HAS FILED IN THE GERMAN CONSTITUTIONAL COURT AGAINST THE EC'S MAASTRICHT TREATY HE KNOWS THE TREATY WELL UNTIL HE WAS FIRED IN SEPTEMBER FOR SPEAKING OUT AGAINST IT PUBLICLY MR BRUNNER WAS A TOP OFFICIAL IN THE EC'S EXECUTIVE COMMISSION IN BRUSSELS WORKING AS CHIEF OF STAFF TO THE GERMAN COMMISSIONER MARTIN BANGEMANN THE TREATY WHICH WAS FINALLY AGREED TO BY EC LEADERS IN THE DUTCH TOWN OF MAASTRICHT IN DECEMBER 1991 LAYS DOWN THE STEPS TOWARD A CURRENCY UNION AND CLOSER POLITICAL INTEGRATION IN EUROPE MR BRUNNER'S 75PAGE SUBMISSION ARGUES THAT IT WOULD UNDERMINE THE ESSENCE OF GERMAN NATIONAL SOVEREIGNTY BY HANDING A CRITICAL MASS OF STATE FUNCTIONS AND POWERS TO EC BODIES WITH NO CLEAR LEGITIMACY SUBMERGED IN A BIGGER EUROPEAN ENTITY GERMANY WOULD NO LONGER BE A DEMOCRATIC STATE IN THE FULL LEGAL SENSE THE SUIT CONTENDS AND MR BRUNNER AS A GERMAN CITIZEN WOULD BE DEPRIVED OF FUNDAMENTAL RIGHTS NOW GUARANTEED BY THE GERMAN CONSTITUTION SIMILAR ARGUMENTS AGAINST THE TREATY HAVE BEEN MADE TO NO AVAIL BY MAASTRICHT OPPONENTS IN FRANCE BRITAIN AND ELSEWHERE AND IN GERMANY CHANCELLOR HELMUT KOHL HAS HAD NO TROUBLE CRUSHING POLITICAL CHALLENGES TO IT BUT TO THE GERMAN GOVERNMENT'S DISMAY AND EMBARRASSMENT THE LEGAL CHALLENGE IS PROVING FAR HARDER TO FEND OFF MR BRUNNER'S SUIT IS THE MOST SUBSTANTIVE OF THREE SEPARATE COMPLAINTS AGAINST MAASTRICHT THAT THE GERMAN CONSTITUTIONAL COURT IS CONSIDERING THE OTHERS WERE FILED BY THE GREENS PARTY AND BY A SENIOR JUSTICE MINISTRY OFFICIAL HANS A STOECKER MR STOECKER DESCRIBES MAASTRICHT IN A TELEPHONE INTERVIEW AS PANEUROPEAN MADNESS THE BONN GOVERNMENT SENT A DETAILED REBUTTAL OF THE COMPLAINTS TO THE COURT IN MIDJANUARY WHILE MAASTRICHT DOES INDEED ENTAIL A TRANSFER OF SOME SOVEREIGNTY IT ARGUED THIS IS NEITHER UNUSUAL NOR UNCONSTITUTIONAL IT URGED THE COURT TO REJECT THE COMPLAINTS WITHIN TWO WEEKS IF POSSIBLE IN ORDER TO WARD OFF SEVERE DAMAGE TO GERMAN FOREIGN POLICY BUT THE COURT BASED IN KARLSRUHE IS AWARE OF ITS ROLE AS THE ULTIMATE WATCHDOG IN A NATION THAT ONCE SUCCUMBED TO TOTALITARIAN RULE AND RESISTS POLITICAL PRESSURE IT IGNORED THE PLEA FOR SWIFT DISMISSAL AND INSTEAD SENT BONN A LIST OF 15 QUESTIONS ABOUT MAASTRICHT AND ITS CONSTITUTIONAL IMPLICATIONS THE COURT IS EXPECTED TO ISSUE ITS RULING IN THE FALL TYPICALLY GERMAN IS HOW THE MAGAZINE DER SPIEGEL DESCRIBES THE PROCESS AND IT HAS A POINT QUITE APART FROM ITS FONDNESS FOR PEDANTRY GERMANY IS BUILT ON A LEGAL FOUNDATION UNLIKE THAT OF OTHER EUROPEAN NATIONS SEVERAL KEY ARTICLES OF ITS POSTWAR CONSTITUTION IN A DELIBERATE ATTEMPT TO PREVENT ANY REPETITION OF THE NAZI PAST CAN'T BE CHANGED BY THE GOVERNMENT OR PARLIAMENT ONE OF THE MOST IMPORTANT IS ARTICLE 20 WHICH DESCRIBES GERMANY AS A DEMOCRATIC STATE IN WHICH ALL POWER EMANATES FROM THE PEOPLE THE HEART OF MR BRUNNER'S SUIT IF THE COURT UPHOLDS THE COMPLAINT GERMANY WOULD EITHER HAVE TO CHANGE ITS CONSTITUTION OR GIVE UP MAASTRICHT MOST GERMAN CONSTITUTIONAL EXPERTS BELIEVE THE COURT WILL SHY AWAY FROM SUCH A CRUSHING JUDGMENT WHICH WOULD HAVE DIRE CONSEQUENCES FOR BOTH DOMESTIC AND FOREIGN POLICY BUT IT COULD STILL REQUIRE THE BONN GOVERNMENT TO NEGOTIATE SEVERAL ALTERATIONS TO MAASTRICHT TO BRING IT INTO LINE WITH THE CONSTITUTION SAYS HEINHARD STEIGER A LAW PROFESSOR AT GIESSEN UNIVERSITY EVEN A SMALL RENEGOTIATION WOULD BE COMPLEX NOW THAT MAASTRICHT HAS BEEN RATIFIED BY PARLIAMENTS OF ALL 12 EC NATIONS EXCEPT FOR BRITAIN INDEED MR BRUNNER AND OTHERS BELIEVE A RENEGOTIATION IS IMPOSSIBLE A PORTLY 45YEAROLD BAVARIAN LAWYER AND POLITICIAN MR BRUNNER ROSE TO BECOME HEAD OF THE FREE DEMOCRATIC PARTY'S BRANCH IN BAVARIA BEFORE MOVING TO BRUSSELS TO WORK WITH MR BANGEMANN ONCE THERE HE SAYS HE WAS DISTURBED TO FIND THE EUROPEAN COMMUNITY'S INSTITUTIONS GIVING THEMSELVES EVER GREATER POWERS WITHOUT PROPER DEMOCRATIC LEGITIMATION IN HIS COMPLAINT HE ARGUES THAT MAASTRICHT WOULD ENABLE GOVERNMENT LEADERS TO BYPASS THEIR DEMOCRATIC PARLIAMENTS BACK HOME CREATING WHAT HE DESCRIBES AS A EUROPE OF THE FUEHRER A DELIBERATE REFERENCE TO THE GERMAN WORD FOR LEADER USED BY ADOLF HITLER EVEN BEFORE THE RUMPUS OVER MAASTRICHT MR BRUNNER DIDN'T SHY FROM CONTROVERSY ONE EC OFFICIAL WHO WORKED WITH HIM RECALLS HOW MR BRUNNER SOMETIMES IRRITATED HIS COLLEAGUES BY MAKING INFLAMMATORY SPEECHES IN GERMANY ON SENSITIVE EC ISSUES WITHOUT CHECKING THE CONTENTS WITH THEM FIRST THIS OUTSPOKENNESS EVENTUALLY LED TO HIS OUSTER MR BRUNNER AT THE TIME WAS READING ABOUT BUREAUCRATS IN THE FORMER COMMUNIST EAST GERMANY WHO KNEW THAT WHAT THEY HAD BEEN DOING WAS WRONG BUT WERE TOO FRIGHTENED TO SPEAK UP MY SITUATION WAS COMPARABLE HE SAYS I KNEW THAT THIS CENTRALIZED EUROPE WOULD GO WRONG AND I THOUGHT THAT IF I RECOGNIZE THIS THEN I CANNOT BE AS COWARDLY AS THE EAST GERMANS MR STOECKER THE JUSTICE MINISTRY OFFICIAL WHOSE COMPLAINT THE COURT IS ALSO CONSIDERING HAS MANAGED TO HOLD ONTO HIS JOB AS A GERMAN CIVIL SERVANT HIS FIRST OBLIGATION IS TO THE CONSTITUTION AND HE CANNOT BE EASILY DISMISSED HE WAS HOWEVER MOVED IN APRIL TO LESSINTERESTING DUTIES IN THE MINISTRY THEY DIDN'T SAY WHY BUT IT WAS QUITE CLEAR HE SAYS MR BRUNNER BY CONTRAST HAS BEEN ALL BUT ABANDONED BY HIS ERSTWHILE POLITICAL FRIENDS IN GERMANY THE BAVARIAN BRANCH OF THE FREE DEMOCRATS HE ONCE HEADED HAS EVEN CALLED ON HIM PUBLICLY TO RETRACT HIS COMPLAINT NOW WORKING AS A LAWYER IN MUNICH WHERE HE ALSO HEADS A NEW ANTIMAASTRICHT FOUNDATION MR BRUNNER BELIEVES THE COURT WILL UPHOLD AT LEAST SOME OF HIS ARGUMENTS AND IF IT DOESN'T HE SAYS HE MAY WELL FORM A NEW POLITICAL GROUPING THAT WILL STAND IN ELECTIONS FOR THE EUROPEAN PARLIAMENT NEXT YEAR 9306210091 930621 BUSINESS BRIEF VOLKSWAGEN AG COMPANY EXPECTS TO RETURN TO PROFIT IN THIRD QUARTER VOLKSWAGEN AG GERMANY'S LARGEST AUTO MAKER WILL RETURN TO PROFITABILITY IN THE THIRD QUARTER PREDICTED WERNER P SCHMIDT CHIEF FINANCIAL OFFICER MR SCHMIDT'S COMMENTS WHICH WERE MADE IN AN INTERVIEW ON GERMAN TELEVISION FRIDAY CAME ONLY ONE DAY AFTER VW WARNED ITS WORKERS THAT FURTHER LAYOFFS WILL BE NECESSARY BECAUSE OF THE POOR CONDITIONS IN THE AUTOMOBILE MARKET THURSDAY KLAUS VOLKERT CHAIRMAN OF VW'S COMBINED WORKS COUNCIL SAID PREVIOUSLY ANNOUNCED PLANS TO LAY OFF 12500 WORKERS BY THE END OF 1994 WERE INSUFFICIENT FOR THE SECOND QUARTER MR SCHMIDT SAID VW WOULD STILL POST A LOSS BUT IT WOULD BE SMALLER THAN THE NET LOSS OF 125 BILLION MARKS 7535 MILLION THE COMPANY REPORTED FOR THE FIRST QUARTER HE GAVE NO INDICATION OF HOW MUCH OF A PROFIT VW EXPECTS FOR THE THIRD QUARTER ALTHOUGH MR SCHMIDT SAID VW WOULD BE BACK IN THE BLACK IN THE THIRD QUARTER HE ADDED THAT THE AUTO MAKER EXPECTS NO RECOVERY IN THE DEPRESSED AUTO MARKET BEFORE THE MIDDLE OF 1994 9306210090 930621 LEISURE & ARTS TELEVISION FILM BIGWIGS TRY THE SMALL SCREEN BY ROBERT GOLDBERG THE BORDER BETWEEN FILM AND TELEVISION HAS NEVER BEEN RIGIDLY MAINTAINED BUT OVER THE PAST 18 MONTHS AS YOU'VE PROBABLY NOTICED TOPNOTCH FILM DIRECTORS AND PRODUCERS HAVE BEEN POURING INTO TV LIKE ILLEGAL ALIENS LOOKING FOR THE PROMISED LAND BARRY LEVINSON GEORGE LUCAS OLIVER STONE THE LIST IS LONG AND IMPRESSIVE FEW SHOWS COME TO THE SMALL SCREEN WITH A MORE DISTINGUISHED PEDIGREE THAN FAMILY DOG CBS WEDNESDAYS 8 PM EDT SIRED BY EXECUTIVE PRODUCERS STEPHEN SPIELBERG AND TIM BURTON THIS ANIMATED SERIES WOULD SEEM TO BE AN INSTANT WINNER JUST IMAGINE A LITTLE ET A LITTLE BATMAN A LITTLE BEETLEJUICE GREAT STORYTELLING AND A WILD AND WACKY SENSIBILITY IT ALL ADDS UP TO A REVOLUTIONARY PRIMETIME CARTOON SERIES AT LEAST THAT WAS WHAT EVERYBODY THOUGHT THREE YEARS AGO FOR THE PAST THREE YEARS FAMILY DOG HAS BEEN SNIFFING AROUND AND THE RUMORS HAVEN'T BEEN GOOD THE PRODUCERS WEREN'T HAPPY THEY COULDN'T FIND THE RIGHT TONE THE RIGHT STYLE OF ANIMATION THE SHOW MIGHT NOT EVER AIR THIS WEEK FAMILY DOG FINALLY ARRIVES ON TV AND THE DOG IN QUESTION IS A CUTE LITTLE MUTT KIND OF MANGY SORT OF SCRUFFY JUST A STEP UP FROM THE RODENT FAMILY REALLY STILL HE'S GOT A GOOD HEART AND THE GOOD SENSE NOT TO BE ONE OF THOSE SPEAKING ANIMALS LIKE YOGI BEAR THOUGH THE STORIES UNROLL FROM HIS POINT OF VIEW THIS FAMILY DOG LETS THE FAMILY DO THE TALKING IT'S A MILDLY ANNOYING VAGUELY MIDDLE CLASS SIMPSONSSTYLE CLAN WITH SKIP BINSFORD MARTIN MULL THE LAZY DAD IN THE BARCALOUNGER HIS WIFE BEV MOLLY CHEEK A NAGGY HAUSFRAU BILLY ZAK HUXTABLEEPSTEIN THE BRATTY BROTHER WHO RUNS AROUND SHOUTING LINES LIKE DIE SCUZZBAG AND HIS SELFABSORBED SISTER BUFFY CASSIE COLE OF COURSE THE SERIES REVOLVES AROUND THE DOG GROWLED BY DANNY MANN MISUNDERSTOOD UNAPPRECIATED ONLY OCCASIONALLY LOVED HE DOESN'T EVEN HAVE A REAL NAME MOST OFTEN HE'S JUST CALLED STUPID DOG OR YOU UNGRATEFUL BAG OF FUR HE DREAMS OF BEING A LASSIE OR A SUPERDOG BUT HE GENERALLY STIRS UP AS MUCH TROUBLE AS HE SOLVES RUNNING OFF WITH A HOMELESS WOMAN OR TURNING THE TOWN DOG SHOW UPSIDE DOWN THE PLOTS HERE AREN'T TOO COMPLICATED THE BINSFORDS GO TO THE ZOO THE DOG IS LEFT BEHIND THE DOG IS UNHAPPY HE RUNS AFTER THEM THEY ALL CHASE EACH OTHER AROUND CREATING HAVOC THE HUMOR IS ALSO PRETTY BASIC STUFF AS WRITTEN BY DENNIS KLEIN THE JOKES STRIVE FOR A KNOWING SNIDE IRONIC TONE WITH OFFHANDED DIGS AT EASY TARGETS LIKE MOM AND POP AND SUBURBIA THERE'S A FAIR COMPLEMENT OF BADBOY YUCKS TOO BUT HOW MANY TIMES ARE YOU GOING TO LAUGH AT PEOPLE CALLING EACH OTHER BUTTHEAD IN GENERAL CARTOONS HAVEN'T FARED TOO WELL ON PRIMETIME TV FISH POLICE AND CAPITOL CRITTERS ARE JUST TWO OF THE RECENT FAILURES THE ONE EXCEPTION OF THE PAST DECADE IS OF COURSE THE SIMPSONS AND FAMILY DOG TAKES WHATEVER EDGE IT HAS ITS TONE ITS SLIGHTLY DYSFUNCTIONAL FAMILY DIRECTLY FROM MATT GROENING'S SERIES IN SHORT I JUST CAN'T FIGURE OUT WHY THIS SHOW WAS CREATED OVER ON CABLE STRANGE AND WONDERFUL THINGS ARE BEING DONE WITH CARTOONS AND I'M NOT REFERRING TO THE REHASHED HANNABARBERA MATERIAL ON THE CARTOON NETWORK REN AND STIMPY IS ACERBIC MANIC MTV'S LIQUID TELEVISION PUSHES THE LIMITS OF ANIMATION WITH FLUGBILD RUNNING MAN AND OTHER PHANTASMAGORIC TRIUMPHS OF ILLUSTRATION EVEN NICKELODEON'S RUG RATS DOES THE NONARTICULATE CRAWLER'SEYE VIEW IN A LIVELIER MORE INGENIOUS WAY BUT FAMILY DOG WITH ITS RUNOFTHEMILL ANIMATION ITS PEDESTRIAN HUMOR THIS SHOW IS PLEASANT ENOUGH BUT IT'S SO FORGETTABLE HOW DID TWO SUCH EXTRAORDINARY TALENTS TURN UP SUCH A VERY ORDINARY SHOW AS IF TO RUB IT IN LATER IN THE WEEK ANOTHER SERIES WITH AN IMPRESSIVE LINEAGE SHOWS UP AND FARES BETTER FROM THE CREATIVE TEAM BEHIND BACK TO THE FUTURE AND WHO FRAMED ROGER RABBIT EXECUTIVE PRODUCERS ROBERT ZEMECKIS FRANK MARSHALL JEFFREY PRICE PETER SEAMAN AND STEVE STARKEY COMES THE COMIC ADVENTURE JOHNNY BAGO CBS FRIDAYS 10 PM EDT JOHNNY TENUTI PETER DOBSON A TWOBIT NEW YORK HUSTLER ON PAROLE IS FRAMED FOR THE MURDER OF A MAFIA BOSS ON THE LAM FROM THE POLICE THE MOB AND WORST OF ALL HIS EXWIFE BEVERLY THERESA FLORIO THE UNSTOPPABLE ROSE ABDOO WHO THROUGH AN UGLY TWIST OF FATE HAS BECOME HIS PAROLE OFFICER JOHNNY TAKES TO THE ROAD IN A MOBILE HOME AND FROM THERE ON THE SERIES PLAYS LIKE THE FUGITIVE IN A WINNEBAGO OVER THE NEXT FEW WEEKS THE LIKABLE BUT NONETOOBRIGHT JOHNNY WILL TRY TO DUCK THE ATTENTIONS OF HIT MEN BEAUTIFUL UNDERAGE GIRLS SHERIFFS AND HIS OWN GRIM REAPER BEVERLY AS HE ZOOMS UP AND DOWN AMERICA'S HIGHWAYS AND BYWAYS A WISE GUY ON THE MOVE IN HIS VERY OWN RECREATIONAL VEHICLE THE RIGHT TONE FOR THIS KIND OF MAFIA TONGUEINCHEEK EXERCISE IS HARD TO PULL OFF MR ZEMECKIS AND COMPANY ARE NOT OVERLY SENSITIVE TO THE NUANCES OF ITALIANAMERICAN LIFE AND OFTEN THEY GO OVER THE TOP BUT AT THEIR BEST THEY'RE PLAYING IN THE SAME LEAGUE AS MARRIED TO THE MOB THE DIALOGUE CAN BE SHARP AND IDIOSYNCRATIC AND JUST A LITTLE TWISTED THE GODFATHER SPEAKS KINDLY TO THE ASSASSIN WHO FAILED HIM AND HAS NOW BEEN MULCHED INTO PLANT FOOD TOMMY YOU WERE ALL RIGHT SAYS THE DON SPREADING THE HIT MAN IN HANDFULS OVER HIS ROSES ALWAYS WITH A JOKE HE PULLS A TINY PIECE OF CLOTH OUT OF THE MULCH AND A SHARP DRESSER TOO SOMETIMES BROAD SOMETIMES EVEN RIDICULOUS STILL THIS SERIES HAS AN AMUSING PREMISE AS A NEW YORK SLICKSTER JOINS THE MIDDLEAMERICAN BROTHERHOOD OF THE 'BAGO THAT NOMADIC CLAN OF OLDTIMERS AND RETIREES DROPOUTS AND ODDBALLS IF JOHNNY BAGO ISN'T BRILLIANT AT LEAST IT'S MORE FUN THAN MANY THIS SUMMER BUT YOU CAN'T HELP NOTICING THAT FOR ALL THE ARTICLES WRITTEN ABOUT THE FILM GODS COMING TO TELEVISION NOT ONLY DO THEY NOT REVOLUTIONIZE OR SAVE THE MEDIUM MOST OF THE TIME THEY BARELY MAKE A DENT 9306210089 930621 IPALCO WINS ROUND IN ITS HOSTILE EFFORT TO BUY PSI RESOURCES INDIANAPOLIS IPALCO ENTERPRISES INC SAID A FEDERAL JUDGE HERE RULED THAT PSI RESOURCES INC MUST HOLD ITS SHAREHOLDER MEETING BY JULY 29 THE RULING MARKS A VICTORY IN THE UTILITY'S HOSTILE EFFORT TO ACQUIRE PSI IPALCO IS SEEKING THROUGH AN UNSOLICITED TENDER OFFER TO ACQUIRE PSI FOR 2650 A SHARE IN A 15 BILLION CASHANDSTOCK BID THE OFFER EXTENDED ONCE ALREADY IS SCHEDULED TO EXPIRE AT 1201 AM JULY 31 BUT PSI A PLAINFIELD IND UTILITY HOLDING COMPANY IS SEEKING TO MOVE AHEAD WITH PLANS IT ANNOUNCED IN DECEMBER IN WHICH IT INTENDS TO MERGE WITH CINCINNATI GAS & ELECTRIC CO IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE PSI SHARES CLOSED AT 23875 UP 50 CENTS AND IPALCO SHARES CLOSED AT 36125 DOWN 50 CENTS IPALCO'S PURSUIT INCLUDES AN EFFORT TO ELECT FIVE BOARD MEMBERS WHO WOULD FAVOR THE IPALCO TRANSACTION AT PSI'S ANNUAL MEETING BUT IN MIDMAY PSI PUSHED BACK ITS MEETING FROM THE SCHEDULED MAY 14 DATE TO SEPT 23 BECAUSE REGULATORY ISSUES ARE SO COMPLEX PSI SAID ITS HOLDERS COULDN'T MAKE AN INFORMED VOTE UNTIL IPALCO SPELLED OUT ITS PLAN TO REGULATORS IN DETAIL INDIANA LAW REQUIRES COMPANIES IN MOST CIRCUMSTANCES TO HOLD ANNUAL MEETINGS WITHIN SIX MONTHS OF THE EXPIRATION OF THEIR FISCAL YEAR OR ELSE 15 MONTHS AFTER THEIR PRIOR ANNUAL MEETINGS IPALCO SAID THAT US DISTRICT JUDGE JOHN D TINDER WROTE IN HIS ORDER IT IS CURIOUS THAT THE PSI BOARD WOULD BELIEVE THE SHAREHOLDERS NEED MORE INFORMATION THAN THE BOARD ITSELF DID IN MAKING ITS DECISION TO APPROVE THE CG&E/PSI MERGER AND TO REJECT IPALCO'S OFFER IPALCO'S CHAIRMAN JOHN R HODOWAL CALLED THE RULING A TRUE VICTORY FOR PSI SHAREHOLDERS AND ADDED THAT THE COURT HAS PUT A WELCOME STOP TO PSI MANAGEMENT'S STRATEGY OF DELAY AND DIVERSION IT'S NOT AT ALL CLEAR THAT PSI HOLDERS WILL IN FACT VOTE TO INSTALL THE IPALCONOMINATED SLATE AND THE SLATE WOULD REPRESENT ONLY ONETHIRD OF THE TOTAL BOARD IN ANY CASE PSI SAID IT IS REVIEWING THE JUDGE'S ORDER 9306210088 930621 LEISURE & ARTS BOOKSHELF FRENCH ACTRESS WHO BECAME MUCH MORE BY OLIVIER BERNIER TRAGEDY INCARNATE A MUSE MADE REAL A SCULPTURE COME TO LIFE THE PARISIANS IN THE 1840S AND '50S COULD NOT FIND ENOUGH EXALTED COMPARISONS TO DESCRIBE RACHEL SHE WAS A GREAT ACTRESS SHE HAD BROUGHT THE PLAYS OF RACINE AND CORNEILLE BACK TO LIFE NO MEAN ACHIEVEMENT WHEN THE ROMANTIC DRAMA WAS IN THE ASCENDANT SOME CRITICS THOUGHT HER HARDLY HUMAN AT ALL MARVELING AT THE FORCE THE PASSION THAT CAME FORTH FROM A YOUNG SKINNY AND UNPRETTY WOMAN THEY WERE ALL QUITE RIGHT TO BE DAZZLED SHE WAS IN FACT THE FIRST REAL STAR OF THE FRENCH THEATER THERE HAD OF COURSE BEEN FAMOUS ACTRESSES BEFORE NOT LEAST CLAIRON IN THE MID18TH CENTURY WHO WAS THE FIRST TO PLAY A GREEK HEROINE IN THE APPROPRIATE COSTUME INSTEAD OF HOOPED SKIRTS UNDER NAPOLEON GEORGE HAD BEEN CELEBRATED FOR HER TALENT AS WELL AS THE FACT THAT SHE WAS THE EMPEROR'S MISTRESS BUT WHEN THEY AGED ALL THESE TRAGEDIENNES DISCOVERED THAT THEY WERE REALLY NO MORE THAN KEPT WOMEN HAVING NEVER BEEN PAID MUCH BY THE THEATER WHERE THEY PLAYED THEY DEPENDED ON RICH LOVERS WHO VANISHED ALONG WITH YOUTH RACHEL WAS THE FIRST TO MAKE SURE HER MONEY CAME FROM HER PROFESSION AND IN GREAT QUANTITIES SHE ALLOWED A VARIETY OF MEN TO SHOWER HER WITH THE JEWELRY OF WHICH SHE WAS MOST FOND BUT SHE NEVER DEPENDED ON THEM ALL THAT AND A GREAT DEAL MORE BECOMES CLEAR IN RACHEL M BROWNSTEIN'S NEW BIOGRAPHY TRAGIC MUSE RACHEL OF THE COMEDIEFRANCAISE KNOPF 318 PAGES 30 MORE THAN JUST A LIFE TRAGIC MUSE IS AN ANALYSIS OF WHAT IT MEANT TO BE A WOMAN AN ACTRESS AND A JEW FROM A WRETCHEDLY POOR FAMILY IN MID19THCENTURY FRANCE AS MS BROWNSTEIN RIGHTLY POINTS OUT THIS WAS A TIME WHEN A CERTAIN DEGREE OF ANTISEMITISM SEEMED PERFECTLY NORMAL NUCINGEN FOR EXAMPLE THE JEWISH BANKER BALZAC PATTERNED AFTER JAMES DE ROTHSCHILD IS A FIGURE OF FUN DESPITE HIS GREAT WEALTH ANOTHER RACHEL THE HEROINE OF THE ENORMOUSLY SUCCESSFUL OPERA LA JUIVE WHICH HAD PREMIERED JUST A YEAR BEFORE RACHEL'S ARRIVAL ON THE STAGE BECOMES MORE BELOVED WHEN SHE TURNS OUT TO HAVE HAD A CHRISTIAN FATHER AFTER ALL THUS FOR A POOR JEWESS TO SUDDENLY APPEAR AS THE INCARNATION OF FRENCH CULTURE WAS A LITTLE STARTLING BUT THE PARISIANS RECOGNIZED GENIUS WHEN THEY SAW IT IN TIME IN FACT RACHEL WENT EVEN FURTHER IN 1848 SINGING LA MARSEILLAISE TO A RAPT AUDIENCE SHE BECAME THE INCARNATION OF FRANCE ITSELF HER FEATURES GRACED THE OFFICIAL BUST OF MARIANNE THE EMBLEM OF THE NEW REPUBLIC SHE NEVER STOPPED PUZZLING PEOPLE WHAT MS BROWNSTEIN DESCRIBES AS HER STRANGELY ROUGH VOICE HER FLASHING EYES HER SPECTRAL LOOK HER FEVERISHNESS THE UNNERVING IMMEDIACY OF HER PRESENCE IN THE THEATER APPARENTLY PROVED HER OTHERWORLDLINESS SO DID HER TRIUMPH IN THAT MOST PASSIONWRACKED MOST NOTORIOUSLY TESTING ROLE THAT OF RACINE'S PHEDRE STILL RACHEL REMEMBERED VERY WELL WHAT IT WAS LIKE TO BE POOR AND QUITE RIGHTLY TOOK GREAT PRIDE IN EARNING EVER VASTER SUMS EVENTUALLY BECOMING THE FIRST FRENCH STAR TO TOUR THE US THRILLING SOLDOUT AUDIENCES EQUIPPED WITH HANDY ENGLISHLANGUAGE TRANSLATIONS IN NEW YORK BOSTON AND PHILADELPHIA AND BRINGING HOME A BUNDLE THIS DID NOT STOP HER FROM BEING GENEROUS TO HER FAMILY AND FRIENDS YET KEEPING PLENTY TO INDULGE HERSELF IN THE PARTTIME COLLECTING OF DIAMONDS LACE AND NAPOLEONIC MEMORABILIA INDEED SHE WENT A STEP FURTHER THAN MOST PEOPLE OTHERS MERELY BOUGHT OBJECTS THAT HAD BELONGED TO THE EMPEROR SHE MANAGED TO SLEEP WITH ALL HIS LIVING MALE RELATIVES STARTING WITH COUNT WALEWSKI HIS ILLEGITIMATE SON BEFORE PROCEEDING TO LOUIS NAPOLEON THE FUTURE NAPOLEON III AND TO PRINCE JEROME HIS COUSIN IT WAS A FASCINATING BUT SHORT LIFE APPROPRIATELY FOR AN ACTRESS SPECIALIZING IN CHARACTERS WHO DIED YOUNG RACHEL WAS CARRIED OFF BY THE CENTURY'S MOST FREQUENTLY FATAL ILLNESS TUBERCULOSIS ALREADY HER SISTER HAD DIED OF IT AND RACHEL CAUGHT A COLD IN AN UNHEATED NEW YORKBOSTON TRAIN WHICH APPARENTLY ACCELERATED HER LATENT ILLNESS NOTHING HELPED NEITHER A TRIP TO THE SUNNY RIVIERA NOR A VISIT TO DRY EGYPT SHE DIED JUST 36 MS BROWNSTEIN WHO CLEARLY EMPATHIZES WITH HER SUBJECT AND KNOWS EVERYTHING THERE IS TO KNOW ABOUT HER AND HER MILIEU MAKE US MOURN RACHEL'S UNTIMELY DEATH AS SHE HAS MADE US SHARE HER LIFE THAT SHE HAS FELT COMPELLED TO FOLLOW FASHION AND WRITE A POSTMODERN BIOGRAPHY DRAGGING IN ALL SORTS OF PERIPHERAL AND OFTEN SUPERFLUOUS MATERIAL IS ONLY MARGINALLY ANNOYING THE ENDLESS EXAMINATION OF WHY CHARLOTTE BRONTE IN VILLETTE SHOULD HAVE CHOSEN THE NAME VASHTI FOR AN ACTRESS PATTERNED ON RACHEL MAKES FOR PAGES OF REALLY STARTLING DULLNESS BUT NEVER MIND ALL THAT CAN EASILY BE SKIPPED WHAT REMAINS IS A LIVELY AND MOVING PORTRAIT OF A WOMAN WHO WAS A GREAT ACTRESS AN ASTUTE BUSINESSWOMAN A DEVOTED RELATIVE AND A FAST FRIEND MR BERNIER IS THE AUTHOR OF SEVERAL BOOKS OF FRENCH HISTORY 9306210086 930621 BUSINESS BRIEF BENGUET CORP TROUBLED MINING CONCERN SELLS INTEREST IN EEI CORP CASHSTRAPPED BENGUET CORP ONE OF THE PHILIPPINES' BIGGEST MINING COMPANIES HAS SOLD ITS 33 STAKE IN EEI CORP TO A CONSORTIUM LED BY INTERNATIONAL CONTAINER TERMINAL SERVICES INC FOR 734 MILLION PESOS 275 MILLION ENRIQUE RAZON JR INTERNATIONAL CONTAINER EXECUTIVE VICE PRESIDENT SAID FRIDAY THE 33 INTEREST ENTITLES THE BUYER TO THREE BOARD SEATS AT EEI A FABRICATION AND INDUSTRIAL ENGINEERING COMPANY INTERNATIONAL CONTAINER OPERATES MANILA INTERNATIONAL CONTAINER TERMINAL SERVICES INC WHICH HANDLES ABOUT 75 OF THE CONTAINER TRAFFIC IN MANILA BENGUET BUFFETED BY WEAK METAL PRICES AND HEAVY DEBT WILL BE ABLE TO SHED 18 OF ITS DEBT DUE THIS YEAR PARTLY AS A RESULT OF THE SALE ANALYSTS FORECAST 9306210085 930621 WORK & FAMILY A SPECIAL REPORT NO ACTION SO MUCH TALK SO LITTLE ACTION WITH ALL THE HYPE ABOUT FAMILYFRIENDLY POLICIES WHY IS IT BUSINESS AS USUAL AT MOST COMPANIES BY SUE SHELLENBARGER THE MESSAGE FROM CORPORATE AMERICA IS CLEAR AND UNMISTAKABLE WE ARE ATTUNED TO OUR WORKERS' FAMILIES THE EVIDENCE IS EVERYWHERE CORPORATE CHILDCARE CENTERS ARE POPPING UP AROUND THE COUNTRY WORKFAMILY MANAGERS APPEAR ON ORGANIZATION CHARTS AND FLEXTIME HAS BECOME A BUZZWORD AS THE NATION'S BIGGEST COMPANIES VIE FOR A FAMILYFRIENDLY IMAGE ENTRIES FOR WORKING MOTHER MAGAZINE'S 100 BEST COMPANIES FOR WORKING MOTHERS LIST HAVE SURGED TO 300 30 MORE THAN IN 1992 SWAMPING THE JUDGES IN GLOSSY BROCHURES WITH AN ONSLAUGHT OF WOMEN SINGLE PARENTS AND TWOPAYCHECK COUPLES IN THE WORK FORCE CORPORATE SUPPORT FOR FAMILIES IT SEEMS IS EXPLODING THERE'S JUST ONE PROBLEM FOR MOST WORKERS LIFE HASN'T CHANGED MUCH AT ALL ALL THIS HOOPLA AND IT'S BUSINESS AS USUAL WHAT'S GOING ON HERE PUT PART OF THE BLAME ON CORPORATE HYPE AT SOME COMPANIES FAMILYFRIENDLY PROGRAMS HAVE NEVER BEEN MUCH MORE THAN PUBLICRELATIONS GIMMICKS CORPORATE PAINT JOBS AIMED AT GIVING THE FIRMS A '90S LOOK MORE OFTEN THOUGH THE REASONS ARE MORE SUBTLE IF NO LESS POWERFUL MANY COMPANIES DON'T EVEN PRETEND TO BE CHANGING PHILOSOPHICALLY OPPOSED TO GETTING INVOLVED IN THEIR WORKERS' PERSONAL LIVES OTHERS BALK AT THE PERCEIVED COST MORE THAN 70 OF THE COMPANIES SURVEYED LAST YEAR BY THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT OF ALEXANDRIA VA BELIEVED THAT MOST WORKFAMILY PROGRAMS WERE TOO COSTLY TO IMPLEMENT BUT THE MOST IMPORTANT REASON FOR THE LACK OF PROGRESS IS MORE FUNDAMENTAL THE WAY MOST COMPANIES DO BUSINESS IS ANTITHETICAL TO A FAMILYFRIENDLY WORKPLACE AND FEW COMPANIES HAVE HAD THE WILL OR PERHAPS THE KNOWLEDGE TO MAKE THE NECESSARY CHANGES AS A RESULT CHIEF EXECUTIVES MAKE PRONOUNCEMENTS COMPANIES ISSUE NEW RULES AND THE MANAGERS ON THE FRONT LINE IGNORE THEM THIS ISN'T TO SAY THAT NO PROGRESS IS BEING MADE A HANDFUL OF COMPANIES HAVE SUCCEEDED IN CREATING A NEW KIND OF WORKPLACE AN ENVIRONMENT WHERE PEOPLE CAN THRIVE AT HOME AND AT WORK BUT EVEN THESE COMPANIES HAVE FOUND IT DIFFICULT TO KEEP PACE WITH THE RAPID DEMOGRAPHIC TRANSFORMATION OF THE WORK FORCE AND THE MONUMENTAL SCOPE OF THEIR EFFORTS ILLUSTRATES JUST HOW DIFFICULT CHANGE IS I DON'T THINK CORPORATE AMERICA UNDERSTANDS WHAT IT MEANS TO BECOME TRULY FAMILYFRIENDLY SAYS REBECCA MADDOX FOUNDER AND PRESIDENT OF CAPITAL ROSE INC A WAYNE PA CONCERN THAT TRAINS AND FINANCES WOMEN ENTREPRENEURS IT FUNDAMENTALLY MEANS THAT COMPANIES ARE GOING TO HAVE TO CHANGE THEIR STRUCTURE THEIR EXPECTATIONS AND WAYS OF LOOKING AT THINGS THAT HAVE BEEN WITH THEM FOR SO LONG I SEE VERY FEW PEOPLE DOING THAT ADDS JUNE ZEITLIN DEPUTY DIRECTOR OF THE FORD FOUNDATION'S RIGHTS AND SOCIALJUSTICE PROGRAM WHICH IS FINANCING RESEARCH ON WAYS TO BROADEN WORKFAMILY EFFORTS PEOPLE DON'T THINK OF WORKFAMILY PROGRAMS AS AN INTRINSIC ELEMENT OF THE BUSINESS OPERATION IT'S MORE LIKE A NICE DOGOOD FRINGE ISSUE ON THE SIDE THERE'S NOTHING THAT RILES SUPPORTERS OF WORKFAMILY PROGRAMS MORE THAN WHEN THESE PROGRAMS ARE SEEN AS SIDE ISSUES OR FRINGE BENEFITS THEY AREN'T SUPPORTERS INSIST THEY ARE BASIC THE PREVAILING CORPORATE CULTURE IN MOST BUSINESSES IS FAR FROM VALUESNEUTRAL MANY ARGUE RATHER IT REFLECTS THE TRADITIONAL FAMILY STRUCTURES OF THE 1950S A WIFE WHO CARES FOR THE CHILDREN AT HOME WHILE THE HUSBAND GOES OFF TO WORK BUSINESSES NEED TO TAKE AN ACTIVIST STANCE ON BEHALF OF THE 60 OF AMERICAN WORKERS WITH CHILD OR ELDERCARE BURDENS SUPPORTERS SAY JUST TO LEVEL THE PLAYING FIELD THE PRICE OF INACTION THESE PROPONENTS SAY IS HIGH A THICKENING GLASS CEILING FOR WOMEN IN MANY FIELDS RISING FRUSTRATION AMONG EMPLOYEES AND A BLEEDING OF TALENT FAMILYRELATED ABSENCES AND DISTRACTIONS FROM WORK ARE ALREADY HURTING PRODUCTIVITY RESEARCH SHOWS AND LOYALTY AND MORALE SUFFER WHEN EMPLOYEES FEEL THEY HAVE TO HIDE OR NEGLECT FAMILY RESPONSIBILITIES CAUSING PEOPLE TO QUIT OR CHANGE JOBS MORE OFTEN AND PERHAPS MOST DAMAGING IN THE LONG RUN ALL THE IMAGEBUILDING HAS RAISED EMPLOYEE EXPECTATIONS WITHOUT SATISFYING THEM I THINK WE'RE GOING TO SEE A BACKLASH SAYS BONNIE MICHAELS A CONSULTANT AT MANAGING WORK & FAMILY IN CHICAGO MS MICHAELS EXPECTS MORALE TO SUFFER AT MANY COMPANIES AND TURNOVER TO RISE PEOPLE ARE FRUSTRATED AND ANGRY BECAUSE THEY WERE EXPECTING IT TO BE DIFFERENT WHEN WORKFAMILY BENEFITS CAME ON SHE SAYS INSTEAD MANY ARE STILL NOT SPENDING ANY QUALITY TIME WITH THEIR FAMILIES DAWN DODGE KNOWS A LOT ABOUT DASHED EXPECTATIONS AS A CUM LAUDE 1987 ENGINEERING GRADUATE OF MICHIGAN TECHNOLOGICAL UNIVERSITY A HIGHLY RATED UNDERGRADUATE SCHOOL MS DODGE WAS THRILLED TO LAND A JOB AS AN ELECTRICAL ENGINEER IN MILWAUKEE AT WISCONSIN ELECTRIC POWER CO A SUBSIDIARY OF WISCONSIN ENERGY CORP SHE DREW HOPE THAT SHE COULD HAVE IT ALL FROM ARTICLES IN THE COMPANY'S EMPLOYEE PUBLICATIONS ABOUT FLEXIBLE BENEFITS AND PARTTIME AND WORKATHOME OPTIONS UNTIL THAT IS THOSE BENEFITS WERE PUT TO THE TEST WHEN HER FIRST CHILD WAS BORN MS DODGE ASKED TO EXTEND HER THREEMONTH MATERNITY LEAVE BECAUSE THE INFANT NEEDED SURGERY I WAS TOLD IT WOULD BE BETTER IF I JUST QUIT SHE SAYS ONLY AFTER HER HUSBAND A CHEMICAL ENGINEER FOR WISCONSIN ELECTRIC OFFERED TO QUIT INSTEAD WAS HER REQUEST GRANTED LATER WHEN HER SON NEEDED MORE SURGERY SHE ASKED FOR A PARTTIME SCHEDULE OR A CHANCE TO WORK AT HOME TEMPORARILY MS DODGE NOW 28 YEARS OLD SAYS SHE WAS WILLING TO DO ANYTHING RUNNING FIELD STUDIES ON HER OWN COMPUTER AT HOME PROOFREADING REPORTS OR EVEN DOING CLERICAL WORK AT REDUCED PAY AND BENEFITS BUT HER BOSS TURNED HER DOWN AND MS DODGE RECALLS A HUMANRESOURCES MANAGER TOLD HER I DON'T KNOW WHY YOU EVEN CALLED THIS TIME SHE DID QUIT WHEN HER CHILD WAS BORN MS DODGE SAYS I FELT LIKE MY LIFE STOPPED MY HIGHEST DREAM OF HAVING IT ALL A CHILD AND A CAREER WAS SHATTERED SHE HAS SINCE STARTED A NETWORKING GROUP FOR UNDEREMPLOYED MOTHERS AND HOPES TO DO WORKFAMILY CONSULTING I'M A GOOD ENGINEER BUT I HAVE NO DESIRE TO GO BACK TO IT NOW SHE SAYS A SPOKESWOMAN FOR WISCONSIN ELECTRIC SAYS THAT WHILE MS DODGE'S BOSSES HAD TALKED AT LENGTH WITH HER ABOUT HER PROBLEMS TELLING HER THEY WERE DISAPPOINTED SHE WAS QUITTING AND WOULD WELCOME HER BACK THEY HAD DONE EVERYTHING THEY COULD TO ACCOMMODATE HER FAMILY NEEDS ALTERNATIVE WORK SCHEDULES ARE GRANTED AT MANAGERS' DISCRETION SHE SAYS AND ALTHOUGH FLEXIBLE SCHEDULES AND WORKATHOME OPTIONS WERE MENTIONED IN A BIG ARTICLE ON THE CHANGING WORK FORCE IN THE COMPANY MAGAZINE THE SPOKESWOMAN ADDS THEY WERE PRESENTED AS EXPERIMENTS NOT SOMETHING EVERY EMPLOYEE COULD COUNT ON WE HAVE BEEN VERY CAREFUL NOT TO RAISE FALSE EXPECTATIONS SAYS THE SPOKESWOMAN WE WERE LOOKING AT THESE THINGS AS POSSIBILITIES BUT NOT AS SOMETHING WE WERE GOING TO DO FOR EVERYONE WE WERE GOING THROUGH AND ARE STILL GOING THROUGH A VERY DEFINITE PERIOD OF ORGANIZATIONAL AND CULTURAL CHANGE AT OUR COMPANY AND MS DODGE'S EXPERIENCE WAS AT THE BEGINNING OF IT SO HOW BLEAK ARE THINGS FOR WORKFAMILY PROGRAMS PRETTY BLEAK ACCORDING TO RECENT STUDIES A NATIONWIDE SURVEY LAST FALL OF 875 WORKPLACES WHERE 50 OR MORE PEOPLE WERE EMPLOYED SHOWED THAT ONLY 72 HAD ONSITE OR NEARSITE CHILDCARE PROGRAMS TWOTHIRDS OF THE BUSINESSES SAID NO WHEN ASKED IF THEY MIGHT EVER OFFER EMPLOYEES EVEN SUCH MINIMAL CHILD OR ELDERCARE HELP AS REFERRALS OR WORKSHOPS SIMILARLY A 1992 SURVEY OF 1004 COMPANIES BY THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT SHOWED THAT TWOTHIRDS WERE NOT AT ALL INVOLVED IN HELPING WITH ELDERCARE SERVICES EVEN THOUGH EMPLOYEES PROVIDING ELDER CARE ARE EXPECTED TO MAKE UP AS MANY AS 44 OF ALL WORKERS BY THE LATE 1990S THERE'S A LOT LESS GOING ON OUT THERE THAN BESTPRACTICE ANECDOTES LEAD YOU TO BELIEVE SAYS PAUL OSTERMAN A PROFESSOR OF HUMAN RESOURCES AND MANAGEMENT AT THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S SLOAN SCHOOL OF MANAGEMENT AND THE AUTHOR OF THE FIRST SURVEY MOREOVER THE NUMBERS OVERSTATE WHAT'S REALLY HAPPENING A STUDY RELEASED LAST YEAR BY THE FAMILIES AND WORK INSTITUTE A NONPROFIT NEW YORK RESEARCH AND CONSULTING FIRM FOUND THAT EVEN THOUGH MOST BIG EMPLOYERS SAY THEY OFFER PROGRAMS SUCH AS FLEXIBLE SCHEDULING THEY ACTUALLY ALLOW IT ONLY INFORMALLY HAVE NO WRITTEN POLICY OR LIMIT IT TO A FEW WORKERS AS A RESULT WHILE 35 OF THE 188 COMPANIES SURVEYED SAID THEY ALLOWED EMPLOYEES TO WORK AT HOME NONE HAD MORE THAN 3 OF EMPLOYEES ACTUALLY DOING SO SIMILARLY FEWER THAN 5 OF THE WORKERS IN MOST COMPANIES TOOK ADVANTAGE OF PARTTIME OFFERINGS AND FEWER THAN 1 TYPICALLY USED JOBSHARING PROGRAMS ALL THIS STUFF ABOUT WORK AND FAMILY IS TERRIFIC BUT IT'S ONLY AVAILABLE TO A SMALL PROPORTION OF THE WORK FORCE SAYS KATHLEEN CHRISTENSEN PROFESSOR AT CITY UNIVERSITY OF NEW YORK WHO HAS WRITTEN EXTENSIVELY ABOUT ALTERNATIVE WORK ARRANGEMENTS THE NUMBERS BECOME EVEN BLEAKER WHEN YOU MOVE DOWN THE CORPORATE LADDER AT CHEVRON CORP SEEN AS ONE OF THE MOST FAMILYFRIENDLY COMPANIES IN THE OIL INDUSTRY EMPLOYEES CAN TAKE PERSONAL LEAVE TO CARE FOR SICK CHILDREN AMONG OTHER THINGS AS LONG AS THEIR SUPERVISOR APPROVES IT BUT WHILE OFFICE WORKERS TYPICALLY GET PAID TIME OFF TO CARE FOR A SICK FAMILY MEMBER REFINERY WORKERS SELDOM GET THE SAME TREATMENT SIMILARLY WHEN RUTH BENNETT'S SON GOT THE FLU AND SHE COULDN'T TAKE HIM TO HIS REGULAR SITTER SHE COMBED THE YELLOW PAGES TO FIND A LICENSED CHILDCARE PROFESSIONAL WHO COULD CARE FOR HIM AT HOME WHEN MS BENNETT A PLANT OPERATOR AT CHEVRON'S RICHMOND REFINERY COULDN'T FIND ANYONE SHE HAD TO MISS TWO DAYS AT WORK THE RESULT HER SUPERVISOR AT THE CHEVRON REFINERY DOCKED HER PAY THE COMPANY'S POLICIES FOR OFFICE WORKERS ARE PRETTY PROGRESSIVE BUT FOR WOMEN WHO DO NONTRADITIONAL WORK IN THE SAME COMPANY THEY ARE 50 YEARS IN THE PAST SAYS CECILY FEUDO A CHEVRON EMPLOYEE AND LOCAL STEWARD FOR THE OIL CHEMICAL AND ATOMIC WORKERS UNION REFINERY WORKERS ALSO MISS OUT ON THE FLEXIBLE SCHEDULES ALLOWED SOME OFFICE EMPLOYEES THOUGH CHEVRON SAYS FLEXTIME IS IMPRACTICAL IN A REFINERY SOME EMPLOYEES SAY IT COULD WORK IF THE COMPANY TRIED HARDER TO IMPLEMENT IT FOR MANY COMPANIES TRANSPLANTING POLICIES BEYOND HEADQUARTERS IS A PROBLEM BUT IT'S A PROBLEM THEY OUGHT TO BE ABLE TO DEAL WITH SAYS MILTON MOSKOWITZ AN EXPERT ON WORKPLACE QUALITY WHO COMPILES THE ANNUAL WORKING MOTHER LIST TIM CUMMINGS CHEVRON'S MANAGER OF LABOR RELATIONS AND EMPLOYMENT SAYS SUPERVISORS IN THE REFINERIES GRANT TIME OFF FOR FAMILY NEEDS BASED ON ABSENTEE RATES IN THEIR PLANTS AND THE AVAILABILITY OF BACKUP WORKERS MANY HAVE TO DENY TIMEOFF REQUESTS WHEN WE'RE REALLY BETWEEN A ROCK AND A HARD PLACE ON COVERAGE HE SAYS IF FILLING IN FOR AN ABSENT WORKER MEANS ANOTHER EMPLOYEE HAS TO WORK TWO 12HOUR SHIFTS 24 HOURS IS A LONG TIME TO BE WORKING IN SOME OF THE HIGHPRESSURE PROCESSES IN REFINERIES HE SAYS SOMETIMES YOU DON'T HAVE AN ALTERNATIVE BUT TO SAY NO MANAGERS' ATTITUDES ARE CHANGING AS WELL MR CUMMINGS SAYS AS CHEVRON FOCUSES A GREAT DEAL ON TRYING TO GET EACH AND EVERY ONE OF OUR EMPLOYEES MORE INVOLVED IN THE BUSINESS HE SAYS HE EXPECTS SUPERVISORS IN THE FUTURE TO APPROVE MORE TIMEOFF REQUESTS FOR FAMILY REASONS AND TO BE MORE RESPONSIVE TO OTHER INDIVIDUAL NEEDS AS WELL IT TAKES A TRANSITION FOR SUPERVISORS TO GET ACCUSTOMED TO SUCH CHANGES HE SAYS MR CUMMINGS ALSO SAYS CHEVRON IS WRITING GUIDELINES FOR PARTTIME WORK THAT COULD BE MADE AVAILABLE TO REFINERY EMPLOYEES AT SOME POINT IN THE NOTTOODISTANT FUTURE EVERYTHING ISN'T HOPELESS OUT THERE AT A HANDFUL OF COMPANIES THE BROAD CHANGES NEEDED TO BECOME FAMILYFRIENDLY ARE UNDER WAY CORNING INC XEROX CORP AMERICAN EXPRESS CO INTERNATIONAL BUSINESS MACHINES CORP U S WEST INC AETNA LIFE & CASUALTY CO JOHNSON & JOHNSON UNUM CORP NATIONSBANK CORP AND OTHERS OFFER BENEFITS THAT HAVE GONE A LONG WAY TO NURTURE A CHANGE IN ATTITUDE AMONG BOTH MANAGERS AND EMPLOYEES THE LEADERS HAVE SOME ELEMENTS IN COMMON ALL OPENLY CONCEDE THAT CREATING A FAMILYFRIENDLY WORKPLACE IS A HUGE CHALLENGE THAT FORCES THEM TO CONSTANTLY RETHINK THEIR WORKFAMILY STRATEGIES FOR EXAMPLE XEROX WITH FUNDING FROM THE FORD FOUNDATION IS STUDYING ITS OWN CULTURAL AND ORGANIZATIONAL BARRIERS TO FLEXIBLE SCHEDULING MOST OF THE LEADERS OFFER TOPTOBOTTOM MANAGEMENT RETRAINING THEY ALSO TRY TO LINK WORKFAMILY PROGRAMS TO OTHER EFFORTS AIMED AT CHANGING THE ORGANIZATION FELPRO INC A SKOKIE ILL AUTOPARTS MAKER OPENED ITS FILES TO A UNIVERSITY OF CHICAGO RESEARCHER WHO WAS ABLE TO DOCUMENT FOR THE FIRST TIME THAT EMPLOYEES WHO RECEIVE WORKFAMILY BENEFITS ARE FAR MORE LIKELY THAN OTHERS TO TAKE PART IN QUALITYIMPROVEMENT EFFORTS CORNING SAW A SIMILAR LINK AFTER ITS QUALITYIMPROVEMENT TEAMS HELPED INITIATE CHILDCARE PROGRAMS AND URGED FLEXIBILITY TRAINING FOR MANAGERS TO EASE WORKFAMILY STRESS BUT THOSE COMPANIES ARE THE EXCEPTIONS AND THAT RAISES A CRUCIAL QUESTION WITH SO FEW WORKPLACES REALLY FEELING THE CHANGE WHY IS THERE THIS IMPRESSION THAT THERE'S A LOT GOING ON SOME OF IT HAS TO DO WITH GOODOLD CORPORATE PUBLIC RELATIONS SOME COMPANIES FOR INSTANCE BOAST OF POLICIES THAT DO NOTHING MORE THAN COMPLY WITH THE LAW IN COMPANY BROCHURES AND IN ITS APPLICATION TO WORKING MOTHER MAGAZINE HOFFMANLA ROCHE INC A NUTLEY NJ PHARMACEUTICAL CONCERN TOUTS ITS BROAD 12WEEK FAMILYLEAVE POLICY TO CARE FOR SICK CHILDREN PARENTS INLAWS OR SPOUSES HOFFMANLA ROCHE RECEIVES DESERVED PRAISE FOR ITS CORPORATE CHILDCARE CENTER CONSIDERED AMONG THE BEST IN THE COUNTRY BUT THE FAMILYLEAVE POLICY IS REQUIRED BY NEW JERSEY'S TOUGH FAMILYLEAVE LAW AND APPLIES ONLY TO NEW JERSEY WORKERS OUTSIDE NEW JERSEY MORE THAN 9000 OTHER HOFFMANLA ROCHE WORKERS ARE GUARANTEED SOMETHING QUITE DIFFERENT A LESS REMARKABLE TWOMONTH PARENTAL LEAVE LIMITED TO CHILDBIRTH OR ADOPTION ONLY UNLESS STATE LAWS REQUIRE OTHERWISE HOFFMANLA ROCHE SAYS THAT MOST OF ITS EMPLOYEES OUTSIDE NEW JERSEY WORK FOR ITS BURLINGTON NCBASED ROCHE BIOMEDICAL LABORATORIES UNIT A NATIONWIDE NETWORK OF CLINICAL LABORATORIES WHICH HAS POLICIES THAT PROVIDE FOR EIGHT WEEKS OF PARENTAL LEAVE EMPLOYEES ALSO CAN GET AN ADDITIONAL 30 DAYS TO CARE FOR A SICK FAMILY MEMBER IF NECESSARY THE COMPANY SAYS WHILE THE EXTRA LEAVE ISN'T GUARANTEED ROCHE BIOMEDICAL'S POLICIES LAY OUT PROCEDURES FOR ASKING FOR THE TIME IF NEEDED IT'S VERY DIFFICULT TO LEGISLATE ALL THE RULES AND REGULATIONS OF ALL OF OUR POLICIES FROM CORPORATE HEADQUARTERS AND SAY THIS WILL HAPPEN ALL OVER THE COUNTRY' SAYS ALVIN VINSON HOFFMAN'S ASSISTANT VICE PRESIDENT HUMAN RESOURCES THE INTENT IS TO HAVE AN EXCELLENT WORKFAMILY PROGRAM THAT WILL INFLUENCE ALL OF OUR MANAGERS HE ADDS THAT THE COMPANY CONTINUES TO EVALUATE ITS WORKFAMILY POLICIES OTHER EMPLOYERS PUT WORKFAMILY POLICIES ON THE BOOKS JUST FOR SHOW LINDA MARKS A CONSULTANT AT NEW WAYS TO WORK IN SAN FRANCISCO RECALLS GETTING A CALL FROM A LARGE LAW FIRM THAT WANTED HER ADVICE ON PUTTING TOGETHER A PARTTIME POLICY THE LAW FIRM MS MARKS SAYS WASN'T INTERESTED IN HER SUGGESTIONS ON IMPLEMENTING THE POLICY JUST ON DEVISING ONE THE FIRM WANTED TO USE IT AS A RECRUITING TOOL AND GO AROUND TO HARVARD AND STANFORD AND ATTRACT GOOD PEOPLE SHE SAYS IT WAS CLEAR THAT THEY DIDN'T WANT ANYBODY TO USE IT MANY EMPLOYERS CLAIM CREDIT FOR EVEN THE PUNIEST PROGRAMS THE MOST COMMON WORKFAMILY BENEFIT AMONG LARGE EMPLOYERS IS THE DEPENDENTCARE SPENDING ACCOUNT A BENEFIT WHEREBY EMPLOYERS SET ASIDE PRETAX PAY FOR EMPLOYEES' CHILDCARE EXPENSES THE ACCOUNTS TYPICALLY ARE USED BY ONLY A TINY PERCENTAGE OF EMPLOYEES AND THEY BENEFIT EMPLOYERS ALMOST AS MUCH AS EMPLOYEES BY REDUCING PAYROLL TAXES YET OF THE 759 EMPLOYERS WHO TOLD HEWITT ASSOCIATES A LINCOLNSHIRE ILL BENEFITS CONSULTANT IN A 1992 SURVEY THAT THEY OFFERED CHILDCARE ASSISTANCE 52 OFFERED ONLY THE DEPENDENTCARESPENDING ACCOUNT SUCH PATTERNS LEAD PAUL KINGSTON AN ASSOCIATE PROFESSOR OF SOCIOLOGY AT THE UNIVERSITY OF VIRGINIA WHO HAS STUDIED WORKFAMILY PROGRAMS TO DESCRIBE CORPORATE EFFORTS GENERALLY AS HALTING UNEVEN AND SHALLOW STILL EVEN COMPANIES THAT ARE COMMITTED TO CHANGE FIND IT ISN'T ALWAYS EASY SIZE IS ONE IMPEDIMENT JOHNSON & JOHNSON WHICH HAS WON AWARDS FOR ITS WORKFAMILY PROGRAMS HAS 28 MAJOR OPERATING COMPANIES IN THE US EACH WITH ITS OWN MANAGEMENT BOARD TO MARCH IN SYNCH IN INTRODUCING THESE MAJOR PROGRAMS AND CULTURAL CHANGES IS EXTREMELY DIFFICULT SAYS CHRIS KJELDSEN VICE PRESIDENT HEADQUARTERS HUMAN RESOURCES AT THE NEW BRUNSWICK NJ CONSUMERPRODUCTS COMPANY THE GROWING DIVERSITY OF THE WORK FORCE RAISES OTHER BARRIERS GETTING THE MESSAGE OUT ABOUT WORKFAMILY PROGRAMS AT MARRIOTT CORP A WASHINGTON DC HOTEL AND FOODSERVICE CONCERN REQUIRES COMMUNICATING WITH 159000 HOURLY WORKERS WHO SPEAK 26 LANGUAGES AND WORK AT 4000 DIFFERENT UNITS SAYS DONNA KLEIN MARRIOTT'S DIRECTOR OF WORK AND FAMILY LIFE UNITS OPEN CLOSE OR CHANGE MANAGERS FREQUENTLY AND 10 TO 15 OF EVERY EMPLOYEE MAILING GETS RETURNED MANY OF THE WORKERS CAN'T EVEN READ THERE IS NEVER GOING TO BE A TIME WHEN EVERYONE IN THIS COMPANY KNOWS ABOUT ALL OUR WORKFAMILY INITIATIVES MS KLEIN SAYS THIS IS OUR COMMUNICATIONS NIGHTMARE IT'S A STRUGGLE FOR US BUT WE KEEP WORKING AT IT MARRIOTT LATER THIS YEAR WILL MAIL INFORMATION IN BOTH ENGLISH AND SPANISH ON ITS CHILDCARE DISCOUNTS AND REFERRAL SERVICES DIRECTLY TO EMPLOYEES' HOMES ADMINISTRATIVE HURDLES CAUSE OTHER PROBLEMS MANY COMPANIES STILL COUNT HEADS IN BUDGETING AND EVALUATING MANAGERS PROVIDING A STRONG INCENTIVE FOR MANAGERS TO WRING AS MANY HOURS OUT OF EACH EMPLOYEE AS POSSIBLE MOST COMPANIES FOR INSTANCE STILL COUNT JOBSHARERS AS TWO WORKERS CHANGING THE HEADCOUNT SYSTEM REQUIRES FINANCIAL HUMANRESOURCES AND SYSTEMS PEOPLE WITHIN COMPANIES TO COOPERATE SOFTWARE MUST BE REWRITTEN AND BUDGETING PROCEDURES CHANGED EVEN THEN THE TRANSITION IS SLOW AT AETNA LIFE & CASUALTY IN HARTFORD CONN WHICH BEGAN THE CHANGE FOUR YEARS AGO SOME MANAGERS STILL WORRY ABOUT HEAD COUNT AN AETNA MANAGER SAYS A WAVE OF DOWNSIZING HAS MADE IMPLEMENTATION EVEN HARDER AETNA SAYS ITS 10 STAFF REDUCTION IN THE PAST THREE YEARS HAS TESTED ITS INTERNAL CAMPAIGN FOR FLEXIBILITY THOUGH A LARGER PROPORTION OF EMPLOYEES ARE WORKING ON FLEXIBLE SCHEDULES THAN THREE YEARS AGO I STILL GET CALLS FROM PEOPLE WHO SAY MY WHOLE DEPARTMENT WAS TOLD THEY HAVE TO COME BACK FULL TIME OR THEY WON'T HAVE A JOB' SAYS MICHELLE CARPENTER AETNA'S MANAGER OF WORK/FAMILY STRATEGIES WHEN MANAGERS ARE UNDER INCREDIBLE PRESSURE AND ARE BEING HIT BY HUGE WAVES OF CHANGE THEY QUICKLY REVERT TO OLD WAYS OF DOING THINGS ANOTHER BIG OBSTACLE IS THE WORK FORCE ITSELF EMPLOYEES OFTEN AREN'T EQUIPPED TO HANDLE THE NEW FAMILYFRIENDLY CULTURE NO MATTER HOW MUCH THEY CLAMOR FOR IT THEY AREN'T USED TO TAKING THE DEGREE OF RESPONSIBILITY THAT SOME OF THE WORKFAMILY PROGRAMS REQUIRE OF THEM WORKING FROM HOME FOR INSTANCE OR SHARING DUTIES IN TEAMS CLEARLY THOUGH ONE IMPEDIMENT TO CHANGE LOOMS FAR ABOVE ALL OTHERS THE DEPENDENCE ON THE FRONTLINE MANAGER WHATEVER THE INTENTIONS OF HEADQUARTERS WHATEVER THE COMPANY'S WRITTEN POLICIES IMPLEMENTATION ALWAYS RESTS ON THE PEOPLE DOWN THE LINE WITHOUT THEIR INVOLVEMENT THE POLICIES BECOME ONLY SO MANY EMPTY PROMISES PERSUADING THE MANAGER TO CHANGE HOWEVER IS A MONUMENTAL TASK MUCH OF THE PROBLEM IS THAT MOST MANAGERS INCLUDING THOSE AT THE TOP DON'T REALIZE HOW MUCH CHANGE IS REQUIRED A LITTLE TINKERING HERE AND THERE THEY FIGURE AND THE COMPANY IS FAMILYFRIENDLY BUT ADVOCATES OF FAMILYSUPPORT POLICIES SAY THAT THE ENTIRE STRUCTURE OF WORK IS BIASED AGAINST ANY FLEXIBILITY THOSE WHO MOVE AHEAD ARE THOSE WHO CAN COME IN EARLY LEAVE LATE AND TRAVEL AT A MOMENT'S NOTICE SUCCESS IS MEASURED IN FACE TIME THE AMOUNT OF HOURS SPENT AT YOUR DESK UNDER THE WATCHFUL EYES OF THE BOSS INSTEAD THESE ADVOCATES SAY COMPANIES HAVE TO START THINKING ABOUT WORK IN TERMS OF OUTPUT RATHER THAN HOURS SPENT IN THE OFFICE ONLY THEN WILL THE WORKPLACE BE EQUALLY FAIR TO ALL WORKERS THOSE WITH FAMILIES AND THOSE WITHOUT BUT THAT REQUIRES A WHOLESALE CHANGE IN THE MINDSET OF THE AMERICAN MANAGER TIME WARNER INC FOR INSTANCE HAS 36000 EMPLOYEES SPREAD ACROSS THE COUNTRY SAYS KAROL ROSE WHO RECENTLY LEFT HER POSITION AS THE COMPANY'S DIRECTOR OF WORK/FAMILY INITIATIVES AND TRAINING IT'S NOT REALISTIC SHE SAYS TO ASSUME THAT SHE CAN EFFECT RAPID CHANGE IT'S NOT MY JOB TO GO OUT AND TELL MANAGERS WHAT TO DO SAYS MS ROSE WHO IS NOW A PRINCIPAL SPECIALIZING IN WORKFAMILY PROGRAMS FOR KWASHA LIPTON A FORT LEE NJ BENEFITS CONSULTANT TALES OF MANAGERS REFUSING TO FOLLOW CORPORATE DIRECTIVES ARE RAMPANT ONE WOMAN A WEST COAST ACCOUNTANT WITH MORE THAN 10 YEARS' EXPERIENCE AT A BIG COMPANY ASKED FOR A FOURDAY WORK WEEK TO ALLOW HER TO TAKE HER FATHER TO WEEKLY CANCER TREATMENTS BY A SPECIALIST 35 MILES FROM HER HOME THE WOMAN IS ALSO THE MOTHER OF TWO YOUNG CHILDREN TWO AND FIVE YEARS OLD AND CARES FOR HER OWN MOTHER WHO HAS A DEGENERATIVE BRAIN DISEASE SHE IS WILLING TO TAKE A CUT IN PAY AND BENEFITS AND TO TAKE WORK HOME TO MAKE A PARTTIME SCHEDULE WORK BUT THOUGH HER EMPLOYER HAS WORKFAMILY POLICIES INCLUDING JOBSHARING FLEXTIME AND FAMILY LEAVE A COMPANY VICE PRESIDENT TOLD HER THAT HE CAN'T AFFORD THIS SORT OF THING SHE SAYS HE TOLD HER IT'S TOO EXPENSIVE I CAN'T DEAL WITH FOURFIFTHS OF A RESOURCE SHE SAYS EVEN AT COMPANIES WITH SWEEPING WORKFAMILY POLICIES CHANGES IN CORPORATE CULTURE SEEP THROUGH THE RANKS SLOWLY MR KJELDSEN OF JOHNSON & JOHNSON FOR INSTANCE CONCEDES THAT CHANGE HAS BEEN DIFFICULT PARTICULARLY IN SOME AREAS OF THE COMPANY WE STILL HAVE POCKETS THAT NEED TO BE WORKED ON HE SAYS BUT HE INSISTS THAT THE CULTURE IS CHANGING THE COMPANY HAS MANDATORY TRAINING FOR MANAGERS IN WORKFAMILY ISSUES AND RECENT EMPLOYEE SURVEYS SHOW SUPERVISORS ARE INCREASINGLY SUPPORTIVE OF FAMILY CONCERNS MORE THAN HALF OF EMPLOYEES SURVEYED IN 1992 SAID THAT THEIR SUPERVISORS WERE SUPPORTIVE WHEN THEY HAD TO ATTEND TO FAMILY MATTERS COMPARED WITH 36 IN 1990 MANY CORPORATE MANAGERS RESIST BECAUSE THEY DON'T EXPERIENCE MUCH WORKFAMILY CONFLICT THEMSELVES SAYS FRAN RODGERS CHIEF EXECUTIVE OF WORK/FAMILY DIRECTIONS INC A BOSTON CONSULTANT BASED ON HER FIRM'S LARGE CLIENT DATA BASE SHE ESTIMATES THAT TWOTHIRDS OF THE MALE MANAGERS AT BIG COMPANIES WHO HAVE CHILDREN 13 YEARS OLD OR UNDER ALSO HAVE WIVES AT HOME TO CARE FOR THEM OUR CONCLUSION BASICALLY IS THAT YOU STILL NEED A WIFE AT HOME TO BE SUCCESSFUL MS RODGERS SAYS NOW THE BAD NEWS WORKFAMILY CONFLICTS ARE CLEARLY GETTING WORSE AT MANY COMPANIES THANKS TO TWO POWERFUL FORCES A WAVE OF PERMANENT CORPORATE JOB CUTS AND A TREND TOWARD JUSTINTIME STAFFING BY PARTTIME AND TEMPORARY WORKERS THE FASTGROWING USE OF CONTINGENT WORKERS IS HELPING MAKE THE NOTION OF WORKFAMILY BALANCE THE PREROGATIVE OF A PRIVILEGED FEW MS CHRISTENSEN AT CITY UNIVERSITY OF NEW YORK SAYS THAT THE ESTIMATED ONETHIRD OF AMERICAN WORKERS WHO MAKE UP THIS SHADOW WORK FORCE AREN'T EVEN ELIGIBLE FOR WORKFAMILY PROGRAMS THE WORKERS LEFT ON STAFF HESITATE TO ASK FOR ANY FAMILY ACCOMMODATIONS AT ALL EVEN COMPANIES THAT WANT TO BE FLEXIBLE HAVE A DIFFICULT TIME DOING THAT WHEN THEY REDUCE STAFF TO THE POINT WHERE EVERYBODY IS STRESSED OUT SAYS BARNEY OLMSTED CODIRECTOR OF NEW WAYS TO WORK IN SAN FRANCISCO IN THE PROFESSIONS CLIENT DEMANDS ARE ACCELERATING WE'RE THERE TO SERVE OUR CLIENTS SAYS LINDA BARR A FORMER AUDIT MANAGER AT ERNST & YOUNG AND CURRENTLY CONTROLLER OF SWEDISH COVENANT HOSPITAL IN CHICAGO WHEN CLIENTS SAY JUMP WE HAVE TO SAY HOW HIGH' YOU CAN'T SAY I'D LIKE TO JUMP SIX FEET TODAY BUT I CAN ONLY JUMP THREE BECAUSE OF MY KIDS' THEY'LL JUST GO NEXT DOOR AND FIND SOMEONE ELSE A SURPLUS OF LAWYERS HAS LED MANY LAW FIRMS TO CUT BACK ON PARTTIME WORK AND OTHER ALTERNATIVE SCHEDULES MY IMPRESSION IS THAT SOME FIRMS FEEL IF WE CAN GET SOMEONE WHO WILL COME IN AND WORK 80 HOURS A WEEK WHY SHOULD WE TAKE YOU FOR 40' SAYS WENDY BROWN A SAN FRANCISCO ATTORNEY WHEN MS BROWN ASKED FOR A PARTTIME SCHEDULE AT A LAW FIRM WHERE SHE WAS WORKING SHE PROPOSED IN A DETAILED MEMO WHAT SHE THOUGHT WAS A WINWIN SITUATION BASED ON HER WORK WITH AN ATTORNEYS' GROUP HELPING TO DEVELOP MODEL ALTERNATIVESCHEDULING PLANS SHE OFFERED HER EMPLOYER SOME FLEXIBILITY IN COMPENSATING HER AND PROMISED TO WORK AT HOME IF NECESSARY THE RESPONSE A CURT REFUSAL AND AN ORDER TO GET HER BILLABLE HOURS UP MS BROWN EVENTUALLY LEFT THAT LAW FIRM IN PART BECAUSE OF ITS INFLEXIBILITY AND IS NOW WORKING FOR A NONPROFIT PROFESSIONALEDUCATION ORGANIZATION COMPETITIVE PRESSURES ARE LEADING MORE EMPLOYERS TO ADOPT NONTRADITIONAL OR CONSTANTLY CHANGING WORK SCHEDULES WORSENING THE PRESSURES ON FAMILIES HARRIET PRESSER A SOCIOLOGY PROFESSOR AT THE UNIVERSITY OF MARYLAND WHO STUDIES WORK SCHEDULES SAYS ABOUT 20 OF US WORKERS ARE ON EVENING NIGHT OR ROTATING SHIFTS AND THE NUMBER IS RISING WITH FAST GROWTH IN SERVICE JOBS CLEARLY FAMILIES PAY A HIGH PRICE FOR THIS GROWTH LIKE MANY SHIFT WORKERS CHEVRON'S MS BENNETT CHANGED THREE YEARS AGO TO A ROTATING 12HOUR SHIFT FROM ROTATING EIGHTHOUR SHIFTS SHE FIGURES THAT THE NUMBER OF DAYS SHE IS TOTALLY UNAVAILABLE TO HER 13YEAROLD SON HAVE MORE THAN TRIPLED AS A RESULT AND SHE BLAMES HIS FAILURE TO WORK UP TO HIS CAPACITY IN SCHOOL ON THE LACK OF SUPERVISION I'M ABLE TO EXERCISE OVER HIM HER LONG HOURS AND INFLEXIBLE SCHEDULE DEPRIVE HER OF CARETAKER TIME TO DO THE DAILY THINGS THAT MOTHERS HAVE TO DO MAKE SURE THE KID EATS AND DOES HOMEWORK AND GETS CLEAN SHE SAYS I LOST OUT BIGTIME AND I THINK IT'S HAD A REALLY NEGATIVE EFFECT ON OUR FAMILY LIFE JIM JOBE ANOTHER BLUECOLLAR WORKER ON ROTATING SHIFTS AT CHEVRON BLAMES THE UNEVEN HOURS WORKED BY HIM AND HIS WIFE A FASTFOOD RESTAURANT EMPLOYEE ON AN EVERCHANGING SCHEDULE FOR SOME OF THE PROBLEMS OF HIS 17YEAROLD SON THE BOY LEFT HOME TWICE IN THE PAST YEAR AND A HALF AND HAD SOME SCRAPES WITH THE LAW THOUGH HE IS BACK IN HIGH SCHOOL NOW YOU'RE NOT HOME WITH THE KIDS AND THE WIFE IS WORKING AND YOUR KIDS GET IN GANGS MR JOBE SAYS WHEN I WAS A KID WE WERE RAISED HAVING MEALS AT A CERTAIN TIME AND THE FAMILY WAS TOGETHER IN THE EVENINGS THE STANDARD ALLAMERICAN WAY BUT OUR FAMILY WAS RARELY THAT WAY WE WEREN'T THERE AT MEALTIMES WE WEREN'T TOGETHER AND WE COULDN'T TALK TO EACH OTHER WHEN HIS SON FELL IN WITH THE WRONG CROWD I FAILED TO SEE IT MR JOBE SAYS REGRETFULLY IN TIME THOUGH MORE COMPANIES MAY BE FORCED TO CHANGE WHEN THE BUSINESS SENSE OF DOING SO BECOMES OVERWHELMING TURNOVER MAY RISE AND PRODUCTIVITY FALL TO THE POINT WHERE COMPANIES WON'T HAVE TO BE PUSHED TO TAKE ACTION ALREADY SOME COMPANIES ARE SEEING A VALUES SHIFT ON CAMPUSES MAKING IT HARDER FOR THEM TO LAND TOP RECRUITS MALE OR FEMALE WITHOUT STRONG WORKFAMILY POLICIES WHEN CAPITAL ROSE'S MS MADDOX SPEAKS TO MBA STUDENTS SHE SEES A LARGE PROPORTION OF THEM PLANNING TO START THEIR OWN BUSINESSES THEY FEEL THAT THEY HAVE NO CHOICE THEIR BELIEF MS MADDOX SAYS IS THEY CAN'T MAKE IT BE HAPPY AND HAVE A FAMILY IN CORPORATE AMERICA MS SHELLENBARGER WHO WRITES THE WALL STREET JOURNAL'S WORK & FAMILY COLUMN SERVED AS CONTRIBUTING EDITOR OF THIS REPORT 9306210084 930621 TECHNOLOGY & HEALTH NORTHERN TELECOM SIGNS AN AGREEMENT WITH CHINA ON EQUIPMENT TECHNOLOGY BY JOHN J KELLER AND MARK HEINZL STAFF REPORTERS OF THE WALL STREET JOURNAL NORTHERN TELECOM LTD SIGNED AN EQUIPMENT AND TECHNOLOGY ACCORD WITH CHINA ESCALATING THE RACE AMONG TELECOMMUNICATIONS EQUIPMENT SUPPLIERS FOR SUPREMACY IN THE WORLD'S LARGEST MARKET THE MEMORANDUM OF UNDERSTANDING BETWEEN CANADA'S NORTHERN TELECOM AND CHINA MAKES BEIJING A CLOSE PARTNER OF NORTH AMERICA'S TWO MAJOR TELECOMMUNICATIONS EQUIPMENT POWERHOUSES A SIMILAR PACT WAS SIGNED IN FEBRUARY BETWEEN CHINA'S STATE PLANNING COMMISSION AND AMERICAN TELEPHONE & TELEGRAPH CO THE LATEST PACT CALLS FOR NORTHERN TELECOM AND BEIJING TO NEGOTIATE JOINT MANUFACTURING AND SALES OF TELECOMMUNICATIONS SWITCHING AND TRANSMISSION EQUIPMENT ADVANCED COMPUTER CHIPS AND TRAINING SERVICES IN CHINA NORTHERN TELECOM SAID IT WILL ASK THE CANADIAN GOVERNMENT TO HELP FINANCE THE EQUIPMENT PURCHASES NORTHERN TELECOM AND BEIJING ALSO AGREED TO EXPLORE SETTING UP A RESEARCH AND DEVELOPMENT LABORATORY TO BE OWNED BY NORTHERN TELECOM'S BELL NORTHERN RESEARCH UNIT AND THE CHINESE GOVERNMENT JEAN C MONTY NORTHERN TELECOM'S PRESIDENT CALLED THE PLANS POTENTIALLY AMONG THE MOST EXTENSIVE IN OUR COMPANY'S HISTORY AND IMPORTANT TO NORTHERN TELECOM'S LONGTERM GROWTH HE SAID HE HOPED TO HAVE DEFINITIVE AGREEMENTS SIGNED BY YEAR'S END MR MONTY SAID NORTHERN TELECOM INITIALLY WILL INVEST UP TO 100 MILLION OVER THE NEXT TWO YEARS MOSTLY ON SWITCH PRODUCTION AND WANTS TO CAPTURE AT LEAST 10 TO 15 OF THE SWITCHING MARKET IN CHINA NORTHERN TELECOM'S CHINA REVENUE LAST YEAR WAS ABOUT 200 MILLION AND MR MONTY SAID HE EXPECTED THIS WILL GROW BY 50 ANNUALLY OVER THE NEXT TWO OR THREE YEARS NORTHERN TELECOM EXECUTIVES VIEW CHINA AS A VAST VIRTUALLY LIMITLESS MARKET CHINA IS UNDERTAKING A MASSIVE PROJECT TO BRING MODERN PHONE SERVICE TO ITS ONE BILLIONPLUS CITIZENS 98 OF WHOM DON'T CURRENTLY HAVE PHONES NORTHERN TELECOM ISN'T A NEWCOMER IN CHINA THE COMPANY IS ALREADY A BIG SUPPLIER OF SWITCHING GEAR FOR PUBLIC AND PRIVATE NETWORKS AND IT HAS BUILT MICROWAVE AND DATA NETWORKS IN CHINA BUT NORTHERN TELECOM FACES MUCH BIGGER RIVALS FRANCE'S ALCATELALSTHOM SA IS CURRENTLY CHINA'S LARGEST SUPPLIER OF SWITCHING GEAR FOLLOWED BY NEC CORP OF JAPAN SWEDEN'S LM ERICSSON AND JAPAN'S FUJITSU LTD ERICSSON IS ALSO CHINA'S MAJOR PROVIDER OF CELLULAR NETWORK EQUIPMENT STILL CHINA'S RISING ECONOMIC TIDE WILL LIKELY LIFT ALL BOATS BETWEEN NOW AND THE YEAR 2000 CHINA PLANS TO ADD ABOUT 15 MILLION PHONE LINES A YEAR ANALYSTS EXPECT THIS NUMBER TO INCREASE FURTHER AFTER THE TURN OF THE CENTURY AS CHINA'S ECONOMY EXPANDS FROM THE IMPROVED COMMUNICATIONS THE US MARKET BY CONTRAST ADDS CURRENTLY ABOUT 10 MILLION LINES OF SWITCHING EQUIPMENT A YEAR AND HAS BEEN STEADILY TAPERING OFF 9306210083 930621 TAIWAN FIRM ORDERED TO PAY MICROSOFT CORP 1 MILLION SETTLEMENT TAIPEI TAIWAN AP A COURT ORDERED A TAIWAN COMPANY TO PAY 1 MILLION US TO MICROSOFT CORP IN ONE OF TAIWAN'S LARGEST SETTLEMENTS IN A CIVIL COPYRIGHT INFRINGEMENT CASE OFFICIALS SAID THE HIGH COURT FOUND THAT DATASTATE CORP COUNTERFEITED LARGE VOLUMES OF THE US SOFTWARE COMPANY'S MSDOS 33 AND 401 PROGRAMS FOR WORLDWIDE DISTRIBUTION THE COURT GRANTED MICROSOFT 265 MILLION NEW TAIWAN DOLLARS IN COMPENSATION AND A PERMANENT INJUNCTION AGAINST DATASTATE AND ITS PRINCIPAL TONG YICHUAN OFFICIALS CONCEDED IT WILL BE HARD TO COLLECT THE MONEY SINCE DATASTATE CLOSED SHORTLY AFTER POLICE IN 1990 SEIZED THOUSANDS OF COPIES OF PIRATED MICROSOFT PRODUCTS MANUALS DISKS AND DUPLICATION EQUIPMENT FROM THE TAIWANESE FIRM WE ARE VERY PLEASED WITH THE TAIWAN HIGH COURT'S RULING SAID YANG SHAWGANG MICROSOFT GENERAL MANAGER FOR THE GREATER CHINA REGION THIS CASE SHOWS THAT SOFTWARE PIRACY IS NOT PROFITABLE FOR INFRINGERS US SOURCES ESTIMATE TAIWANESE PIRACY OF SOFTWARE MOVIES RECORDS AND BOOKS COST US COMPANIES 669 MILLION LAST YEAR IN MARCH IN A MOVE TO AVERT US THREATS OF TRADE RETALIATION TAIWAN PASSED A STRINGENT LAW PROTECTING INTELLECTUAL COPYRIGHT TAIWANESE FACE UP TO TWO YEARS IN PRISON IF THEY IMPORT MORE THAN ONE COPY OF ANY COMPUTER SOFTWARE BOOK CASSETTE OR VIDEO TAPE WITHOUT AUTHORIZATION FROM THE US ENGLAND AND HONG KONG 9306210082 930621 BUSINESS BRIEF CHIYODA CORP JAPANESE COMPANY'S PROFIT ROSE SHARPLY FOR FISCAL YEAR CHIYODA CORP ONE OF JAPAN'S LARGEST PLANT ENGINEERING COMPANIES SAID GROUP PRETAX PROFIT NEARLY DOUBLED FOR THE FISCAL YEAR ENDED MARCH 31 PRETAX PROFIT JUMPED TO 1449 BILLION YEN 1353 MILLION FROM 74 BILLION YEN A YEAR EARLIER NET INCOME ROSE 88 TO 1164 BILLION YEN FROM 618 BILLION YEN WHILE SALES INCREASED 14 TO 44125 BILLION YEN FROM 38589 BILLION YEN THE COMPANY SAID OVERSEAS SALES ROSE 37 TO 2526 BILLION YEN EXPORTS REPRESENTED 57 OF TOTAL SALES INCREASING FROM 48 A YEAR EARLIER HOWEVER CHIYODA PREDICTED THAT GROUP RESULTS WILL SLUMP FOR THE CURRENT FISCAL YEAR AS STIFFER FOREIGN COMPETITION THE STRONGER YEN AND RISING PERSONNEL EXPENSES TAKE THEIR TOLL THE COMPANY EXPECTS PRETAX PROFIT TO FALL 34 TO 95 BILLION YEN AND NET INCOME TO FALL 55 TO 52 BILLION YEN SALES ARE SEEN DROPPING 14 TO 380 BILLION YEN 9306210081 930621 WHO'S NEWS EVERGREEN BANCORP EVERGREEN BANCORP GLEN FALLS NY THE COMPANY SAID WILLIAM L BITNER III PLANS TO RETIRE AS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER EDWARD F ALLARD HAS BEEN NAMED CHAIRMAN AND WILL LEAD THE TRANSITION EFFORT MR BITNER WHO HAS BEEN WITH THE COMPANY 25 YEARS GAVE NO SPECIFIC DATE FOR HIS RETIREMENT AND HAS AGREED TO STAY ON AS PRESIDENT AND CHIEF EXECUTIVE OF THE HOLDING COMPANY AND ITS FIRST NATIONAL BANK OF GLEN FALLS UNIT UNTIL A SUCCESSOR IS NAMED 9306210080 930621 BUSINESS BRIEF EG&G INC SECONDQUARTER EARNINGS EXPECTED TO FALL UP TO 10 EG&G INC CITING UNEXPECTEDLY SLUGGISH SALES SAID ITS SECONDQUARTER EARNINGS COULD DROP AS MUCH AS 10 AFTER THE ANNOUNCEMENT FRIDAY EG&G'S STOCK TUMBLED AND CLOSED IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING AT 19875 DOWN 225 OR 1017 EG&G BASED IN WELLESLEY MASS IS AN INSTRUMENT MAKER AND TECHNICAL AND ENERGY SERVICES CONTRACTOR A YEAR EARLIER THE COMPANY EARNED 218 MILLION OR 39 CENTS A SHARE ON REVENUE OF 6958 MILLION THE COMPANY SAID THE CONTINUED RECESSION IN THE US AND EUROPE RESULTED IN LOWERTHANEXPECTED BOOKINGS IN ITS COMPONENTS AND INSTRUMENTS BUSINESSES EG&G ALSO BLAMED ITS EXPECTED DECLINE IN EARNINGS ON LOWER INCOME FROM CONTRACTS FOR MANAGING US DEPARTMENT OF ENERGY FACILITIES EG&G ADDED THAT IT EXPECTS ITS EARNINGS FOR THE YEAR BEFORE ACCOUNTING CHANGES TO MATCH OR BE SLIGHTLY ABOVE THE 156 A SHARE IT EARNED IN 1992 9306210079 930621 BUSINESS BRIEF BOEING CO ENGINEMOUNTING STRUCTURES IN 747 JETS TO BE REINFORCED BOEING CO AS EXPECTED SAID IT WILL CHANGE THE FIXTURES THAT JOIN ENGINES TO ITS 747 JUMBO JETS REINFORCING PARTS SUSPECTED OF CAUSING TWO FATAL CRASHES IN THE LAST 18 MONTHS BOEING SEATTLE SAID IT WOULD INSTALL TWO ADDITIONAL STEEL MOUNTINGS TO ALL ENGINE STRUTS WHICH WILL BACK UP THE EXISTING MOUNTING STRUCTURE ALSO ALL ENGINEMOUNTING FUSE PINS WILL BE REPLACED WITH CORROSIONRESISTANT PINS EACH PLANE WILL TAKE TWO TO THREE WEEKS TO MODIFY THE COMPANY SAID SEPARATELY BOEING'S COMMERCIAL AIRPLANE DIVISION SAID IT RECEIVED A 70 MILLION ORDER FOR TWO 737300 TWINJETS FROM MAERSK AIR A DANISH OPERATOR OF CHARTER AND SCHEDULED AIRLINE SERVICES DELIVERY IS SCHEDULED FOR 1995 AND 1996 9306210078 930621 INTERNATIONAL DONATIONS TO MAJOR'S PARTY TIED TO FUGITIVE FINANCIER LONDON AS IF JOHN MAJOR DIDN'T HAVE ENOUGH PROBLEMS HE MAY HAVE TO PAY BACK MONEY GIVEN TO HIS CONSERVATIVE PARTY UNDER MARGARET THATCHER BY FUGITIVE FINANCIER ASIL NADIR ACCORDING TO ALLEGATIONS PUBLISHED OVER THE WEEKEND IN THE SUNDAY TIMES OF LONDON AT LEAST SOME OF THE MONEY WAS STOLEN PAID THROUGH AN OFFSHORE ACCOUNT USED BY MR NADIR TO SIPHON OFF FUNDS FROM HIS POLLY PECK INTERNATIONAL PLC FOOD AND LEISURE CONGLOMERATE CONSERVATIVE PARTY OFFICIALS HAVE CONFIRMED RECEIVING 440000 666600 BETWEEN 1985 AND 1990 IN DONATIONS FROM POLLY PECK AND UNIPAC PACKAGING LTD ANOTHER COMPANY CONTROLLED BY MR NADIR THE FINANCIER IS NOW IN CYPRUS HAVING JUMPED BAIL TO EVADE PROSECUTION IN CASES RELATING TO THE 1990 COLLAPSE OF POLLY PECK A PARTY SPOKESMAN SAID THE FUNDS IN QUESTION WOULD BE RETURNED TO POLLY PECK LIQUIDATORS IF ALLEGATIONS THAT THEY WERE STOLEN CAN BE PROVED THE ALLEGATIONS ARE LIKELY TO BE A SOURCE OF FURTHER EMBARRASSMENT FOR MR MAJOR TOMORROW IN A DEBATE ON PARLIAMENTARY PARTY FINANCING IN THE HOUSE OF COMMONS CALLED AT THE DEMAND OF THE OPPOSITION LABOR PARTY 9306210077 930621 WORLD MARKETS TOKYO STOCKS SLUMP IN MONDAY MORNING SESSION IN REACTION TO POLITICAL CRISIS OVER THE WEEKEND BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPANESE STOCKS FELL SHARPLY MONDAY BATTERED BY THE WEEKEND'S POLITICAL TURMOIL AT THE CLOSE OF THE MORNING SESSION THE NIKKEI INDEX OF 225 STOCKS STOOD AT 1932447 DOWN 48007 FROM FRIDAY'S CLOSE TRADERS SAID THAT VOLUME WAS MODERATE BUT THAT SELL ORDERS SWAMPED THE FEW BUYERS THE NIKKEI INDEX HAS LOST 175153 POINTS SINCE EARLY JUNE HURT BY THE POLITICAL SITUATION WEAK DEMAND AND A STRONG YEN WHICH IS EXPECTED TO HURT EARNINGS AT JAPANESE EXPORTERS THE YEN'S FOURMONTH RALLY MAY HAVE STALLED FRIDAY ANALYSTS SAID BUT THE CURRENCY COULD STILL HURT EXPORTERS BECAUSE IT REMAINS AT A HIGH LEVEL JAPANESE FINANCIAL INSTITUTIONS AND INDIVIDUALS WERE AMONG THE MOST ACTIVE SELLERS MONDAY MORNING TRADERS SAID THOSE INVESTORS UNLOADED STOCK AFTER FRIDAY NIGHT'S NOCONFIDENCE MOTION AGAINST PRIME MINISTER KIICHI MIYAZAWA PASSED IN PARLIAMENT THE NOCONFIDENCE VOTE WASN'T TAKEN UNTIL AFTER THE MARKET CLOSED ON FRIDAY SO THAT DAY'S TRADING DIDN'T REFLECT THE IMPACT OF MR MIYAZAWA'S DEFEAT NONETHELESS FRIDAY'S PARTICIPANTS KEPT A WATCHFUL EYE ON POLITICAL MANEUVERING AND STOCKS DECLINED THE NIKKEI AVERAGE WHICH HAD ADDED 2309 POINTS THURSDAY LOST 12097 POINTS ON FRIDAY TO 1980454 FIRSTSECTION VOLUME DWINDLED TO AN ESTIMATED 250 MILLION SHARES FROM 3134 MILLION SHARES AND LOSERS OUTNUMBERED GAINERS 607387 THE TOKYO STOCK PRICE INDEX OF ALL FIRSTSECTION ISSUES DECLINED 627 POINTS FRIDAY TO 158732 IF THE NIKKEI AVERAGE CONTINUES TO TUMBLE TRADERS SAID THE GOVERNMENT PROBABLY WILL INJECT FUNDS INTO THE MARKET TO SUPPORT STOCK PRICES MANY IN JAPAN THINK THE RULING LIBERAL DEMOCRATIC PARTY IS ON THE VERGE OF LOSING POWER AFTER ALMOST FOUR DECADES AT THE HELM IN THE LONG TERM THIS CHANGE IF IT WERE TO OCCUR COULD BE HEALTHY FOR THE JAPANESE ECONOMY ANALYSTS SAID IN THE SHORT TERM HOWEVER IT'S LIKELY TO WEAKEN SOME OF THE FACTORS THAT HAVE BEEN SUPPORTING THE MARKET MAINLY EXPECTATIONS OF AN ECONOMICSTIMULUS PACKAGE DEREGULATION MEASURES AND A POSSIBLE INTERESTRATE CUT FOR THE FIRST HALF OF THIS WEEK WE'LL BE DIGESTING THIS BAD STORY SAID OSAMU YASAKA DEPUTY GENERAL MANAGER OF THE EQUITY DEPARTMENT AT NIKKO SECURITIES CO THE MARKET WAS FULL OF RUMORS THAT ECONOMICSTIMULUS MEASURES WILL NOW BE DELAYED HE SAID THE NIKKEI WILL PROBABLY FALL TO 19200 OR LOWER BEFORE THE WEEK IS OUT MR YASAKA PREDICTED TRADERS ALSO THOUGHT THAT IN THE NEAR TERM THE NIKKEI IS UNLIKELY TO SURPASS RECENT HIGHS THE MARKET IS STUCK IN A BOX BETWEEN 19000 AND 21000 FOR THE TIME BEING SAID YASUFUMI OHIGASHI DEPUTY GENERAL MANAGER OF THE EQUITY DEPARTMENT AT NOMURA SECURITIES CO SELLING PRESSURE WAS THIN HE SAID BUT INVESTORS WERE NERVOUS BECAUSE NO ONE KNOWS WHAT THIS POLITICAL SITUATION MEANS FOR THE NATIONAL ECONOMY SOME KEY STOCKS IN THE MARKET SUCH AS NIPPON TELEGRAPH & TELEPHONE CORP ARE CLOSELY ASSOCIATED WITH BOTH GOVERNMENT SPENDING AND DEREGULATION EXPECTATIONS THAT EITHER OF THOSE INITIATIVES WILL STALL WHILE POLITICIANS SCRAMBLE FOR POWER ARE LIKELY TO BRUTALIZE THESE SHARES NTT IS A VERY VERY POLITICAL STOCK AND IT'S IMPORTANT FOR THE MARKET AS A WHOLE MR YASAKA ADDED FOR ALL THE TURMOIL FOREIGN INVESTORS WHO HAVE BEEN ESSENTIAL TO THIS YEAR'S RECOVERY OF THE JAPANESE MARKET SEEMED UNFAZED BY JAPAN'S POLITICAL DOINGS WHAT HAPPENS IN JAPANESE POLITICS DOESN'T AFFECT THE ECONOMY OR TRADE SAID CRAIG CHUDLER STRATEGIST AT UBS SECURITIES LTD EXPRESSING A SENTIMENT ECHOED BY MANY FOREIGNERS IF THE LDP BREAKS APART IT WILL JUST BRING OUT DIFFERENCES THAT WERE ALWAYS THERE INSIDE THE LDP ANALYSTS SAID THAT IN ADDITION TO FOREIGN INVESTORS WHO MIGHT RETURN TO THE MARKET IF STOCKS LOOK CHEAP GOVERNMENT FUNDS MAY STEP IN TO SUPPORT JAPANESE STOCKS WHEN THEY FALL THEY STILL HAVE SOMETHING LIKE 16 TRILLION OR 18 TRILLION YEN 164 BILLION EARMARKED FOR STOCKS SAID KATHY MATSUI STRATEGIST AT BARCLAYS DE ZOETE WEDD SECURITIES LTD I DON'T SEE AGGRESSIVE BUYING BY ANYONE BUT THE GOVERNMENT SHE SAID BUT WITH THAT MUCH MONEY ON HAND AND NO HEAVY SELLING PRESSURE SHE ADDED IT DOESN'T SOUND LIKE THE MARKETS WILL SUFFER TOO MUCH LONDON EQUITIES ROSE ON THE RELEASE OF MORE BULLISH ECONOMIC DATA WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10453 DOWN 156 REFLECTING INCREASES IN MARKETS IN ASIA/PACIFIC EXCLUDING JAPAN AND A DROP IN THE MARKETS OF THE AMERICAS AND EUROPE ALUMINUM STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9647 UP 069 OR 072 WITH MAXXAM OF THE US POSTING A 323 GAIN IN ITS LOCAL CURRENCY FISHING STOCKS TRAILED AT 9304 DOWN 292 OR 304 WITH NIPPON SUISAN OF JAPAN SLIDING 196 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 37 POINTS TO 28794 THE FT 30STOCK INDEX ADDED 38 POINTS TO 22523 VOLUME WAS 7125 MILLION SHARES COMPARED WITH 5554 MILLION SHARES A DAY EARLIER SENTIMENT WAS HELPED BY BRIGHT DATA ON BRITAIN'S MONEY SUPPLY AND BANK LENDING FOLLOWING BROADLY FAVORABLE ECONOMIC REPORTS A DAY EARLIER IN FRANKFURT ON A TRIPLE WITCHING DAY THE DAX FELL 539 POINTS TO 168690 TRADING WAS QUIET AMID A TRIPLE SET OF FUTURES AND OPTIONS CONTRACT EXPIRATIONS AS NO OTHER NEWS EMERGED TO DRIVE THE MARKET MILAN SENTIMENT HURT EARLIER IN THE WEEK BY CORPORATE SHOCKS TURNED AROUND AND STOCKS CLIMBED MADRID SHARE PRICES SURGED BOOSTED BY A RATE CUT BY SPAIN'S CENTRAL BANK 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 9306210076 930621 USS/KOBE PRESIDENT FINANCE CHIEF RESIGN AMID BILLING AUDIT LORAIN OHIO USS/KOBE PRESIDENT ROBERT K FRAVEL AND CHIEF FINANCIAL OFFICER RICHARD ZIEGLER STEPPED DOWN AMID AN ONGOING AUDIT OF THE STEELMAKER'S BILLING PRACTICES THE COMPANY A JOINT VENTURE BETWEEN USX CORP'S US STEEL UNIT AND JAPAN'S KOBE STEEL LTD SAID MR FRAVEL 58 YEARS OLD TOOK EARLY RETIREMENT EFFECTIVE IMMEDIATELY HE WILL BE SUCCEEDED BY PAUL J WILHELM 51 VICE PRESIDENTTECHNOLOGY AND MANAGEMENT SERVICES FOR US STEEL A SPOKESMAN SAID MR FRAVEL'S DEPARTURE WAS HIS CHOICE AND UNRELATED TO THE AUDIT USS/KOBE ALSO SAID MR ZIEGLER 56 IS LEAVING IMMEDIATELY TO PURSUE OTHER INTERESTS THE SPOKESMAN WOULDN'T COMMENT ON WHETHER MR ZIEGLER'S DEPARTURE IS RELATED TO THE AUDIT MR ZIEGLER WILL BE SUCCEEDED BY STEVEN J MILCHECK 52 WHO WAS US STEEL'S DIRECTOR FOR BUSINESS DEVELOPMENT MR FRAVEL COULDN'T BE REACHED MR ZIEGLER REACHED AT HOME DECLINED TO COMMENT 9306210075 930621 POLITICS & POLICY SENIOR ADVISERS URGE CLINTON TO MOVE TOWARD EASING EMBARGO ON VIETNAM BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S SENIOR ADVISERS ARE RECOMMENDING STEPS THAT COULD LEAD TO AT LEAST A PARTIAL LIFTING OF THE US TRADE EMBARGO AGAINST VIETNAM AT AN INTERAGENCY MEETING LAST WEEK SENIOR US OFFICIALS AGREED TO SUGGEST TO MR CLINTON THAT THE US NO LONGER OPPOSE A FRENCHLED EFFORT TO HELP HANOI PAY OFF 140 MILLION IN OLD DEBTS TO THE INTERNATIONAL MONETARY FUND A DECISION COULD COME IN THE NEXT FEW WEEKS ONCE VIETNAM CLEARS ITS ARREARS IT WOULD BE ELIGIBLE FOR HUGE LOANS FROM INTERNATIONAL FINANCIAL INSTITUTIONS TO FINANCE MAJOR PROJECTS TO REBUILD ITS ECONOMY THE RESUMPTION OF LENDING TO VIETNAM WOULD PUT PRESSURE ON MR CLINTON TO DECIDE WHETHER TO LIFT THE 18YEAR TRADE EMBARGO AGAINST HANOI UNLESS THE EMBARGO IS LIFTED US COMPANIES WOULD BE BARRED FROM BIDDING ON THE PROJECTS EVEN THOUGH US TAXPAYERS' FUNDS WOULD BACK THE INTERNATIONAL FINANCIAL OGRANIZATIONS AS A RESULT MR CLINTON'S TOP ADVISERS ALSO HAVE MADE RECOMMENDATIONS CONCERNING THE EMBARGO ONE IDEA ACCORDING TO A SENIOR OFFICIAL WOULD BE TO LIFT THE EMBARGO PARTLY SO THAT US COMPANIES COULD BID ON THE PROJECTS FINANCED BY INTERNATIONAL INSTITUTIONS ANOTHER OFFICIAL SAID HOWEVER THAT WHILE THERE IS VIRTUAL UNANIMITY ABOUT RECOMMENDING THAT THE US NO LONGER BLOCK EFFORTS TO HELP VIETNAM PAY ITS ARREARS THERE ISN'T A CONSENSUS ON THE EMBARGO ISSUE SOME ADVISERS BELIEVE THAT MR CLINTON SHOULD LIFT THE EMBARGO AT THE SAME TIME THAT HE GIVES THE GREEN LIGHT TO THE IMF LENDING WHILE OTHERS ADVOCATE A GOSLOW APPROACH THE LAW THAT IMPOSES THE EMBARGO ON VIETNAM COMES UP FOR RENEWAL IN SEPTEMBER THE WHITE HOUSE HAS BEEN LOBBIED HEAVILY BY BUSINESS GROUPS WHICH CONTEND THAT US COMPANIES ALREADY ARE LOSING OUT TO EUROPEAN AND ASIAN COMPETITORS THAT NO LONGER HONOR THE US EMBARGO US COMPANIES CONSIDER VIETNAM A POTENTIALLY LUCRATIVE MARKET FOR THEIR PRODUCTS SHORTLY BEFORE LEAVING OFFICE FORMER PRESIDENT BUSH EASED SOME RESTRICTIONS ALLOWING US COMPANIES TO OPEN OFFICES AND HIRE STAFF IN VIETNAM BUT NOT CONDUCT ANY BUSINESS BUT VIETNAM REMAINS AN EMOTIONALLY CHARGED ISSUE FOR MR CLINTON WHO AVOIDED MILITARY SERVICE DURING THE CONFLICT THERE IN APRIL WHEN THE IMF WAS SET TO TAKE UP THE ISSUE THE ADMINISTRATION WAS ON THE VERGE OF DECIDING THAT IT WOULDN'T OBJECT TO THE EFFORTS TO HELP VIETNAM THEN A RUSSIAN DOCUMENT SURFACED FROM AN ARCHIVE IN MOSCOW SUGGESTING THAT VIETNAM HELD BACK HUNDREDS OF US PRISONERS OF WAR AFTER IT HAD SAID IT RELEASED ALL ITS POWS IN 1973 THE ADMINISTRATION ASKED THE IMF TO HOLD OFF PENDING A US REVIEW OF THE DOCUMENT ADMINISTRATION OFFICIALS SUBSEQUENTLY CAST DOUBTS ON THE ACCURACY OF THE DOCUMENT WHICH PURPORTS TO BE A RUSSIAN TRANSLATION OF A 1972 REPORT TO VIETNAM'S POLITBURO WHEN FRANCE AND OTHER NATIONS AGREED TO A POSTPONEMENT LAST APRIL THE US SAID IT WOULD BE PREPARED TO DISCUSS THE ISSUE OF VIETNAM'S ARREARS AT THE NEXT SESSION OF THE IMF'S DIRECTORS WHICH IS EXPECTED TO BE HELD IN MIDJULY SO MR CLINTON MUST MAKE A DECISION SOON US OFFICIALS REMAIN NERVOUS ABOUT THE PROSPECT THAT OTHER SIMILAR DOCUMENTS COULD SURFACE SEVERAL RIGHTWING AND VETERANS GROUPS STRONGLY OPPOSE NORMALIZATION OF RELATIONS WITH VIETNAM AND ARE EXPECTED TO MOUNT A STRONG CAMPAIGN IF THE ADMINISTRATION MOVES IN THAT DIRECTION SINCE THE APRIL INCIDENT THOUGH VIETNAM'S COOPERATION IN RESOLVING CASES OF US SERVICEMEN MISSING IN ACTION HAS INCREASED CONSIDERABLY US OFFICIALS SAY 9306210073 930621 WORK & FAMILY A SPECIAL REPORT ON THE JOB SMALL STEPS AT U S WEST THE CULTURE IS CHANGING BUT IT ISN'T ALWAYS SMOOTH OR EASY BY ROBERT L ROSE TWO SCENES FROM THE CORPORATE FRONT LINES IN A MODERN OFFICE BUILDING IN BELLEVUE WASH THE DESKS OF A DOZEN COMPUTERSOFTWARE WORKERS ARE OFTEN EMPTY LARRY OWEN ARRIVES EARLY AND LEAVES EARLYIN TIME TO HAVE DINNER READY WHEN HIS WIFE RETURNS HOME FROM HER JOB PHILMORE REDEAU WORKS 10 HOURS A DAY FOUR DAYS A WEEK SO HE CAN STAY HOME ON WEDNESDAYS WITH HIS TWOYEAROLD SON SHIRLEY ELLISON TAKES TIME OUT TO DRIVE HER ILL HUSBAND TO THE DOCTOR I TRUST THEM TO GET THE JOB DONE SAYS GERRI TYLER OF HER CREW BESIDES THE SYSTEMS SOFTWARE MANAGER ADDS HER FLEXIBILITY DOES WONDERS FOR WORKERS' MORALE ON THE OTHER SIDE OF LAKE WASHINGTON IN SEATTLE SOME WORKERS IN A DOWNTOWN OFFICE BUILDING ONLY DREAM OF THAT KIND OF FLEXIBILITY LAYOFFS THEY SAY HAVE SAPPED MORALE INCREASED STRESS AND MADE THEIR EMPLOYER LESS WILLING TO TOLERATE WORKFAMILY CONFLICTS A FEW BLOCKS AWAY A UNION OFFICIAL TELLS OF A SINGLE MOTHER WHO WAS NEARLY FIRED BY THE COMPANY FOR SPENDING TOO MANY WORK DAYS AT HOME WITH HER SICK CHILD TWO DIFFERENT SCENES BUT IT'S ALL PART OF ONE SCRIPT BOTH DESCRIBE CONDITIONS AT U S WEST INC MEET U S WEST THE REGIONAL PHONE COMPANY THAT WINS RAVES FOR FAMILYFRIENDLY POLICIES AND MEET U S WEST WHERE SOME WORKERS SNIGGER AT THE NOTION THAT WORKING MOTHER MAGAZINE HONORED IT AS ONE OF THE BEST PLACES FOR WORKING MOTHERS IN 1988 1989 AND 1990 THE COMPANY DIDN'T APPLY IN 1991 AND 1992 PARTLY BECAUSE OF COMPLAINTS FROM A SEATTLE AREA EMPLOYEE THAT THE COMPANY WASN'T FLEXIBLE ENOUGH IN HER WORK GROUP U S WEST PLANS TO APPLY AGAIN THIS YEAR WE HAVEN'T CAPTURED THE HEARTS AND MINDS OF EVERYBODY IN THE COMPANY CONCEDES RICHARD MCCORMICK CHAIRMAN AND CHIEF EXECUTIVE BUT THE CONTINUUM HAS MOVED NO WONDER THE MARCH TOWARD A FAMILYFRIENDLY WORKPLACE IS MOVING SO SLOWLY AS THE EXPERIENCE AT U S WEST SHOWS THE SUPPORT OF TOP EXECUTIVES TAKES A COMPANY ONLY SO FAR AT SOME POINT IT'S UP TO THE FRONTLINE MANAGER BUT THAT CAN LEAVE WORKERS WITH LITTLE MORE THAN THE CHAIRMAN'S PROMISES MANY MANAGERS ALREADY HAVE TOO MUCH TO WORRY ABOUT WITH COMPETITION HEATING UP AND COSTS BEING CUT TO PAY MUCH ATTENTION TO THEIR WORKERS' FAMILY NEEDS OTHER BOSSES SIMPLY REFUSE TO BUDGE FROM THEIR OLD WAYS CONVINCED THAT THE LINE BETWEEN WORK AND FAMILY SHOULDN'T BE CROSSED COMPANIES CAN HAVE ON THE BOOKS ALL THE FLEXIBLESCHEDULING POLICIES THEY LIKE SAYS BARNEY OLMSTED CODIRECTOR OF NEW WAYS TO WORK A NONPROFIT SAN FRANCISCO CONSULTING AND RESEARCH CONCERN BUT IF MANAGERS DON'T IMPLEMENT THEM THEY'RE MEANINGLESS DESPITE THE CRITICISMS MOST PEOPLE INSIDE AND OUTSIDE U S WEST AGREE THAT THE TELECOMMUNICATIONS GIANT IS AHEAD OF MOST COMPANIES IN HELPING EMPLOYEES DEAL WITH THE STRESS OF FAMILIES AND WORK NO ONE KNOWS HOW TO DO THIS SAYS ANTHONY IPSARO A DENVER CONSULTANT AND PSYCHOLOGIST WHO HAS ADVISED U S WEST AND OTHER LARGE COMPANIES U S WEST HE SAYS IS OUT THERE WRITING THE BOOK ON HOW TO PUT THESE ISSUES TOGETHER GIVE MUCH OF THE CREDIT TO MR MCCORMICK A 32YEAR PHONECOMPANY VETERAN HE SAYS HE TRIES TO SET THE TONE FOR MANAGERS ENCOURAGING THEM TO EXPERIMENT RATHER THAN LAYING DOWN EDICTS THAT MIGHT NOT FIT EACH WORK GROUP WHILE HE DOESN'T EXPECT TO CONVINCE EVERY MANAGER HE SAYS HE AIMS FOR ENOUGH MOMENTUM TO PUT THE RECALCITRANT MANAGERS IN AN UNTENABLE POSITION OVER TIME IN AN ARTICLE LAST YEAR FOR CHIEF EXECUTIVE MAGAZINE THE 52YEAROLD MR MCCORMICK CHALLENGED FELLOW EXECUTIVES TO CHAMPION THESE ISSUES OR QUIT TAKING PERSONAL CALLS FROM THEIR OWN FAMILIES WHILE HIS FOUR CHILDREN ARE NEARLY GROWN MR MCCORMICK KNOWS FIRSTHAND THE BURDEN OF FAMILY RESPONSIBILITIES HE IS CONCERNED ABOUT HIS 90YEAROLD MOTHER WHO LIVES ALONE IN FORT DODGE IOWA IT'S TO THE POINT WHERE I WORRY WHETHER SHE IS COOKING REGULARLY AND EATING REGULARLY HE SAYS COMPANY REFERRALS SEARCHING FOR A NEW RESIDENCE FOR HIS MOTHER MR MCCORMICK WHO WORKS OUT OF THE COMPANY'S ENGLEWOOD COLO HEADQUARTERS CALLED U S WEST'S TOLLFREE NUMBER THAT PROVIDES ADVICE AND REFERRALS ON CHILD AND ELDER CARE SO DID 17 OF THE COMPANY'S 62400 EMPLOYEES ONE OF THE HIGHEST PARTICIPATION RATES OF ANY COMPANY THE COMPANY ALSO SPONSORS WORKSHOPS ON FAMILYRELATED TOPICS SUCH AS HOW TO DEAL WITH BABIES TEENAGERS AND ELDERLY RELATIVES A PROGRAM TO NEGOTIATE DISCOUNTS ON CHILD CARE SAVED EMPLOYEES 423000 LAST YEAR LABOR CONTRACTS WITH THE COMMUNICATIONS WORKERS OF AMERICA AND INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS ALLOW FOR FLEXIBLE WORKWEEKS AND PERSONAL TIME OFF IN ONEHOUR CHUNKS MR MCCORMICK SAYS SUCH POLICIES MAKE BUSINESS SENSE AT A TIME WHEN FEWER FAMILIES HAVE THE LUXURY HIS DID A SPOUSE WHO CAN STAY HOME I DON'T KNOW HOW PEOPLE COPE TODAY IN A COMPANY THAT IS NOT FAMILYFRIENDLY SAYS THE EXECUTIVE BUT OTHERS AT U S WEST SUGGEST THE COMPANY'S REPUTATION IS AHEAD OF REALITY SOMETIMES THEY GIVE A LOT OF LIP SERVICE TO BE HONEST WITH YOU SAYS CLARK SPRANGET BUSINESS MANAGER FOR THE ELECTRICAL WORKERS LOCAL THAT REPRESENTS WORKERS IN MONTANA MR SPRANGET AND OTHER LOCAL UNION OFFICIALS SAY THEY SPEND MUCH OF THEIR TIME ARGUING THE CASES OF WORKERS WHO CAN'T GET FLEXIBILITY FOR FAMILY PROBLEMS THEY SAY THE BIGGEST PROBLEM IS PERSUADING SUPERVISORS NOT TO PENALIZE EMPLOYEES MANY OF THEM SINGLE MOTHERS WHO MISS WORK BECAUSE THEY HAVE TO TEND TO SICK CHILDREN AS MR SPRANGET SEES IT THE COMPANY IS OFTEN LESS FLEXIBLE TODAY BECAUSE LAYOFFS AND INCREASED WORK LOADS MEAN THEY CAN'T SPARE ANY PEOPLE MR SPRANGET'S LOCAL WHICH COVERS THE ENTIRE STATE HAS DWINDLED TO ABOUT 730 MEMBERS FROM 1860 IN 1984 DURING THE SAME PERIOD U S WEST'S WORK FORCE HAS FALLEN ABOUT 13 FROM NEARLY 70800 AT THE END OF 1984 SUCH A DOWNSIZING CREATES ONE OF THE BIGGEST STRESSES OF ALL THE FEAR OF LOSING A JOB THERE ARE A LOT OF MIXED MESSAGES SAYS RUTH GOMEZ PRESIDENT OF THE SEATTLE LOCAL OF THE COMMUNICATIONS WORKERS UNION ADDS A WOMAN LEAVING THE COMPANY'S DOWNTOWN OFFICE IT'S GETTING SCARY MR MCCORMICK RESPONDS THAT WORKERS HAVE A LOT OF TIMEOFF OPTIONS BUT THAT THEY ALSO HAVE A JOB TO DO WE AREN'T GOING TO HAVE A PERFECT SAFETY NET IN EACH OF THOSE CASES HE CONCEDES AS FOR THE LAYOFFS WITH INCREASING COMPETITION IN MANY OF THE COMPANY'S MARKETS THERE'S NO RELIEF IN SIGHT I'VE SAID WE WILL SEE A CONTINUATION OF THE CURRENT SITUATION THROUGH THIS DECADE MR MCCORMICK SAYS I'M NOT TRYING TO SUGARCOAT ANYTHING THE COMPANY SAYS THE BEST IT CAN DO IS BE HUMANE TO VICTIMS OF DOWNSIZING AND TRY TO MAKE U S WEST A BETTER PLACE FOR THE SURVIVORS BUT FAMILYFRIENDLY DOESN'T MEAN WE ARE GOING TO DO EVERYTHING FOR YOU WARNS DEE VELLINGA DIRECTOR OF FAMILY AND WORK INITIATIVES IT'S ABOUT GIVING YOU THE TOOLS THE BEST TOOL FOR MANY U S WEST EMPLOYEES THE MOST IMPORTANT TOOL THEY CAN BE GIVEN IS A SUPPORTIVE MANAGER WITHOUT THAT THEY SAY MANY OF THE OTHER TOOLS ARE USELESS ONE DENVERAREA MANAGER WHO HAS WORKED AT HOME ON AND OFF FOR THE PAST THREE YEARS SAYS ONE OF HER BOSSES ENCOURAGED HER TO WORK AT HOME MAKING IT EASIER FOR HER TO HELP HER AILING FATHERINLAW BUT IT WAS DIFFERENT WITH HER NEXT BOSS I COULD TELL BY HIS EYES THAT HE WAS NOT THAT CRAZY ABOUT THE IDEA SHE SAYS THERE WAS A POINT POLITICALLY WHERE YOU KNEW YOU HAD TO GET BACK TO THE OFFICE THE WOMAN RETURNED TO THE OFFICE EVEN THOUGH SHE WOULD HAVE PREFERRED TO SPEND MORE TIME WORKING AT HOME SOMETIMES MANAGERS FEEL THEY CAN'T BE FLEXIBLE BECAUSE BUSINESS CONDITIONS MAKE IT IMPOSSIBLE FOR A COMPANY LIKE U S WEST THE ULTIMATE RISK IS THAT A CUSTOMERSERVICE REPRESENTATIVE IN PHOENIX AN OPERATOR IN WATERLOO IOWA OR A SOFTWARE TECHNICIAN IN BELLEVUE WON'T BE AVAILABLE WHEN THE PHONE RINGS WHEN MANAGERS ARE WORKING ON IMPORTANT NEW TECHNOLOGIES FAMILY CONCERNS DON'T TAKE A HIGH PRIORITY CONCEDES MS VELLINGA ADDRESSING A CONFERENCE BOARD SEMINAR IN MARCH MS VELLINGA LAMENTED THE LACK OF ENOUGH PEOPLE AROUND THE COMPANY TO HELP PUSH FAMILY AND WORK ISSUES WITH THE PRESSURES OF CUTBACKS CHAMPIONS ARE DIFFICULT TO FIND SHE SAID THE BEST WAY TO SPARK SUCH CHANGE SHE SAYS IS TO GET BOTH THE COMPANY AND THE UNION ON BOARD THAT HAPPENED IN RECENT CONTRACT TALKS WHEN BOTH SIDES NEGOTIATED BENEFITS INCLUDING THE REFERRAL SERVICE AND PRIORITY PERSONAL DAYS THAT CAN BE TAKEN AT SHORT NOTICE THE CONTRACT CALLS FOR LOCAL UNION AND COMPANY OFFICIALS TO WORK OUT THE DETAILS BUT SETS A MINIMUM OF TWO PRIORITY DAYS OUT OF EIGHT TOTAL PERSONAL DAYS A YEAR WHETHER SUCH PROGRAMS WORK AT THE LOCAL LEVEL DEPENDS ON HOW WELL LOCAL SUPERVISORS UNION OFFICIALS AND WORKERS GET ALONG WHEN WORKERS IN U S WEST'S HOME AND PERSONALSERVICES UNIT COMPLAINED OF A LACK OF FLEXIBILITY THE UNIT'S GENERAL MANAGER ENCOURAGED THEM TO COME UP WITH SCHEDULES THAT WOULD MEET THE DEMANDS OF CUSTOMERS AND ACCOMMODATE FAMILY NEEDS WORKERS ACROSS FIVE MIDWESTERN STATES FOUND THEY COULD TRADE WITH EACH OTHER FOR DAYS OFF IT'S LITERALLY A KIND OF BARTERING SAYS JANE EVANS THE GENERAL MANAGER OF THE UNIT IN DOWNTOWN SEATTLE MS EVANS'S POLICIES ENABLE NANCY LANDON TO TAKE ADVANTAGE OF A NEW FLEXTIME POLICY ARRIVING AND LEAVING 15 MINUTES EARLY AND BEATING 30 MINUTES OF TRAFFIC IT'S THAT MUCH MORE TIME TO GET MY DAUGHTER FROM DAY CARE AND GET DINNER AT A REASONABLE TIME SHE SAYS BUT MRS LANDON FEELS THAT THE COMPANY ISN'T AS FLEXIBLE AS IT COULD BE HER DEPARTMENT FOR INSTANCE REQUIRES A MINIMUM NUMBER OF PEOPLE ON THE JOB TO COLLECT RESIDENTIAL PHONE BILLS AND WHEN HER DAUGHTER WAS SICK WITH CHICKEN POX BRONCHITIS AND STREP THROAT SHE COULDN'T GET A PAID VACATION DAY BECAUSE ALL 16 SLOTS WERE TAKEN SHE HAD TO TAKE UNPAID TIME OFF A BLACK MARK AGAINST HER ATTENDANCE MS EVANS AGREES PROGRESS CAN BE SLOW BUT SAYS IT ISN'T REALISTIC TO EXPECT QUICK COMPREHENSIVE CHANGE AT A COMPANY AS LARGE AND ESTABLISHED AS U S WEST WHICH SPANS 14 STATES SHE PREACHES THAT SMALL STEADY ADVANCES CAN ADD UP TO BIG CHANGES WHETHER THEY ARE IN CUSTOMER SERVICE OR FLEXIBILITY FOR WORKERS THE UNION OPPOSITION RELUCTANT SUPERVISORS AREN'T THE ONLY ONES STANDING IN THE WAY OF FLEXIBILITY MANY UNION OFFICIALS FOR INSTANCE HATE THE IDEA OF WORKING AT HOME TELECOMMUTING IS NOT SOMETHING THAT THE UNION BELIEVES IN SAYS MS GOMEZ OF THE COMMUNICATIONS WORKERS UNION TOO MANY QUESTIONS ARE NOT ANSWERED AMONG THE QUESTIONS WHO IS RESPONSIBLE FOR EQUIPMENT AND PROPRIETARY INFORMATION KEPT AT HOME SCATTERING WORK ACROSS THOUSANDS OF HOMES ALSO MAKES IT HARD FOR THE UNION TO ORGANIZE AND ENERGIZE ITS MEMBERS SUPERVISORS ALSO HAVE TO LEARN WHERE TO DRAW THE LINE TO PREVENT PEOPLE FROM TAKING ADVANTAGE OF FLEXIBLE POLICIES GWEN KRIEGER A 49YEAROLD DENVER PROJECT MANAGER WHO HAS PERIODICALLY WORKED FROM HOME RECALLS ONE COLLEAGUE WHO WENT TO A BUSINESS MEETING AT MRS KRIEGER'S HOUSE DURING THE MEETING THE WOMAN'S HUSBAND AND YOUNG DAUGHTER SHOWED UP AS WELL IT WAS SUPPOSED TO BE AN INFORMAL MEETING MRS KRIEGER SAYS BUT THE WOMAN CLEARY DIDN'T UNDERSTAND THAT INFORMALITY HAS ITS LIMITS THAT TYPE OF PERSON I'D RECOMMEND NOT BE A TELECOMMUTER MRS KRIEGER SAYS REFERRING TO WORK AT HOME IN BELLEVUE ABOUT A QUARTER OF THOSE IN GERRI TYLER'S GROUP REGULARLY WORK AT HOME TYPICALLY FOR NO MORE THAN TWO DAYS A WEEK OTHERS TAKE ADVANTAGE OF FLEXTIME TO HELP OUT AT HOME OR TO BEAT THE TRAFFIC CARL SCHEURMAN SOMETIMES LEAVES EARLY FOR A CLASS AS DOES MS TYLER WHO IS WORKING TOWARD A MASTER'S DEGREE IN CAREER COUNSELING GERRI IS PROBABLY THE MOST FLEXIBLE MANAGER I'VE EVER WORKED FOR IN THE COMPANY SAYS LOREN WRIGHT IN HIS HOUSE SOME 40 MILES SOUTH OF BELLEVUE MR WRIGHT'S DAY AT HOME OFTEN BEGINS AT 4 AM OR 5 AM WHEN HE SWITCHES ON THE COMPUTER IN THE TINY OFFICE NEAR HIS KITCHEN AND WINDS DOWN AFTER 230 PM AS HIS TWO YOUNG SONS COME HOME FROM SCHOOL MS TYLER'S FLEXIBILITY ALLOWED SHIRLEY ELLISON TO HELP HER HUSBAND DEAL WITH HIS BRAIN SURGERY TWO YEARS AGO AND THE LONG AND OFTEN FRUSTRATING RECOVERY PERIOD FOR A WHILE SHE WORKED AT HOME DAILY NOW SHE WORKS AT HOME ON DAYS SHE HAS TO DRIVE HIM TO APPOINTMENTS I'D BE FIRED AT ANY OTHER COMPANY IF I HAD TO KEEP THESE HOURS SHE SAYS SEVERAL YEARS AGO MS TYLER'S BOSS WARY OF EMPLOYEES WORKING AT HOME INSISTED THAT MS TYLER MAKE REGULAR VISITS TO A WOMAN WORKING AT HOME UNDER AN EXPERIMENTAL PROGRAM THAT MEANT DRIVING TO DOWNTOWN SEATTLE AND TAKING A FERRY TO BAINBRIDGE ISLAND WHERE THE WOMAN LIVED USUALLY SHE STAYED FOR LUNCH AND A CHAT TODAY SHE SEES THE FLEXIBILITY AND THE TRUST THAT GOES WITH IT AS COMPENSATION FOR A GROUP OF NONUNION EMPLOYEES WHO ARE ON CALL 24 HOURS A DAY THEY ARE REACHABLE BY BEEPER AND EACH HAS TWO BACKUPS IF THEY DON'T RESPOND TO CALLS QUICKLY IT DOESN'T TAKE LONG TO HEAR COMPLAINTS FROM OTHERS AT U S WEST WHO DEPEND ON HER GROUP TO HELP INSTALL AND MAINTAIN SOFTWARE FOR THE TELEPHONE COMPANY MS TYLER SAYS IT IS RARELY A PROBLEM MR ROSE IS A STAFF REPORTER IN THE WALL STREET JOURNAL'S CHICAGO BUREAU 9306210072 930621 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST 9306210071 930621 PRUDENTIAL SETTLEMENT MAY BE MORE THAN 200 MILLION BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PRUDENTIAL SECURITIES INC PROBABLY WILL PAY MORE THAN 200 MILLION IN A SETTLEMENT WITH FEDERAL AND STATE REGULATORS INVESTIGATING WHETHER THE BROKERAGE FIRM IMPROPERLY SOLD LIMITED PARTNERSHIPS IN THE 1980S PEOPLE FAMILIAR WITH THE MATTER SAID THE SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION AND STATE SECURITIES REGULATORS ISN'T EXPECTED TO BE FINALIZED BEFORE LABOR DAY AND THE FIGURE COULD CHANGE BEFORE THEN BUT PRUDENTIAL SECURITIES ALREADY HAS INCREASED ITS INITIAL SETTLEMENT OFFER OF 100 MILLION WITH THE SEC AS THE TALKS HAVE HEATED UP IN THE PAST FEW WEEKS THE PEOPLE SAID SEPARATELY THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT ALSO PROBABLY WILL OFFER INVESTORS A REVISED SETTLEMENT OF ABOUT 100 MILLION IN A CLASS ACTION BROUGHT BY 130000 ENERGYPARTNERSHIP INVESTORS IN A US COURT IN NEW ORLEANS THE PEOPLE SAID PRUDENTIAL SECURITIES THE NATION'S FOURTHLARGEST BROKERAGE FIRM IS EAGER TO PUT ITS PARTNERSHIP WOES BEHIND IT BY YEAR'S END THE FIRM ALREADY HAS SET ASIDE NEARLY 500 MILLION IN RESERVES TO DEAL WITH LAWSUITS BY DISGRUNTLED INVESTORS WHO BOUGHT REAL ESTATE ENERGY AND OTHER LIMITED PARTNERSHIP INVESTMENTS MANY OF WHICH HAVE SOURED AMID TAXLAW CHANGES AND MARKET DOWNTURNS A BIG CHUNK OF PRUDENTIAL'S RESERVES TAKEN OVER THE PAST SEVERAL YEARS ALREADY HAS BEEN PAID OUT TO INVESTORS WITH LEGAL CLAIMS THUS THE MONEY FOR SETTLING THE FEDERAL AND STATE REGULATORY CASE AND THE CLASSACTION MATTER COULD BRING THE FIRM'S TOTAL LEGAL TAB FOR ITS SOURED PARTNERSHIPS TO AS MUCH AS 750 MILLION MAKING PRUDENTIAL'S FORAY INTO THE PARTNERSHIP BUSINESS ONE OF THE COSTLIEST MISHAPS EVER BY A SECURITIES FIRM SETTLEMENT TALKS BETWEEN PRUDENTIAL SECURITIES AND THE SEC BEGAN PICKING UP STEAM AROUND MEMORIAL DAY THE PEOPLE SAID A PRELIMINARY DRAFT OF AN AGREEMENT COULD BE DRAWN UP WITHIN THE NEXT MONTH BUT THE ISSUE IS COMPLEX AND PRUDENTIAL IS TRYING TO COMBINE THE SEC AND STATE REGULATORY MATTERS INTO ONE SETTLEMENT WHICH COULD DELAY MATTERS AMONG OTHER THINGS PRUDENTIAL AND THE SEC ARE TRYING TO DETERMINE EXACTLY HOW THE MONEY WHICH WILL BE SET ASIDE IN A CLAIMS FUND WILL BE PAID OUT TO INVESTORS AS MUCH TIME IS BEING SPENT ON THE MECHANISM FOR DOLING IT OUT AND MAKING SURE IT'S A FAIR ONE TO EVERYBODY AS THE DOLLAR AMOUNT SAID AN INDIVIDUAL INVOLVED IN THE TALKS A PRUDENTIAL SECURITIES SPOKESMAN DECLINED TO COMMENT ON THE SETTLEMENT DISCUSSIONS WILLIAM MCLUCAS THE SEC'S ENFORCEMENT CHIEF DECLINED TO COMMENT ON ANY ASPECT OF THE MATTER THE DISCUSSIONS OF A REVISED CLASSACTION SETTLEMENT MEANWHILE COME AFTER AN AGREEMENT BY PRUDENTIAL TO SELL ITS 35 ENERGY PARTNERSHIPS FOR 491 MILLION TO PARKER & PARSLEY PETROLEUM CO PRUDENTIAL ALREADY HAS YANKED ITS ORIGINAL SETTLEMENT OFFER WHICH INCLUDED 37 MILLION IN CASH AND PARTNERSHIP INTERESTS IN A REVISED FORM AMID PROTESTS FROM PLAINTIFF ATTORNEYS THE 130000 INVESTORS WHO LOST ABOUT HALF THEIR ORIGINAL 145 BILLION ENERGY PARTNERSHIP INVESTMENT ALLEGE THAT PRUDENTIAL MISREPRESENTED THE RISKS AND RETURNS OF THE PARTNERSHIPS EVEN AFTER THE REGULATORY AND CLASSACTION SETTLEMENTS PRUDENTIAL WILL HAVE STILL ONE OTHER BIG HEADACHE THE US ATTORNEY'S OFFICE IN MANHATTAN RECENTLY LAUNCHED A CRIMINAL INVESTIGATION OF THE FIRM'S LIMITEDPARTNERSHIP PRACTICES PEOPLE FAMILIAR WITH THE INQUIRY SAID PROSECUTORS ARE TRYING TO DETERMINE AMONG OTHER THINGS WHETHER THERE WERE ANY ILLEGAL PAYMENTS MADE TO PRUDENTIAL EXECUTIVES IN CONNECTION WITH THE CREATION MARKETING AND DISTRIBUTION OF PARTNERSHIPS PRUDENTIAL ONE OF WALL STREET'S BIGGEST DISTRIBUTORS OF LIMITED PARTNERSHIPS SOLD UNITS VALUED AT ABOUT 6 BILLION TO 360000 INVESTORS IN 650 PARTNERSHIPS IN THE 1980S MANY OF THE EXECUTIVES RESPONSIBLE FOR THE PARTNERSHIP PROBLEMS NO LONGER ARE AT THE FIRM AND DESPITE THE MOUNTING RESERVES TO WHICH PRUDENTIAL PROBABLY WILL ADD ABOUT 150 MILLION THIS YEAR ALONE THE FIRM HAS HAD SOLID PROFITS AMID WALL STREET'S BOOM HARDWICK SIMMONS PRUDENTIAL SECURITIES' PRESIDENT AND CHIEF EXECUTIVE OFFICER HAS TOLD EMPLOYEES THAT THE FIRM HAD INCOME OF ABOUT 200 MILLION BEFORE TAXES AND RESERVES THIS YEAR THROUGH APRIL PRUDENTIAL HAS HAD AN AVERAGE OF ABOUT 70000 SECURITIES TRADES A DAY THIS YEAR UP ABOUT 10000 FROM 1992 9306210070 930621 BUSINESS BRIEF FIRST UNION CORP FIRST AMERICAN ACQUISITION TO CLOSE AFTER AGREEMENT FIRST UNION CORP REACHED AN AGREEMENT WITH THE WASHINGTON DC CITY COUNCIL TO COMPLETE ITS ACQUISITION OF FIRST AMERICAN METRO CORP FOR 453 MILLION A FEDERAL MAGISTRATE MEDIATED A MEETING FRIDAY BETWEEN THE CITY COUNCIL AND OFFICIALS FROM FIRST UNION A CHARLOTTE NC BANK HOLDING COMPANY THE TRANSACTION WAS IN DANGER OF BEING HELD UP AFTER THE COUNCIL SAID IT SHOULD HAVE A SAY IN FIRST AMERICAN'S ACQUISITION TERMS OF THE AGREEMENT WEREN'T DISCLOSED BUT A FIRST UNION SPOKESMAN SAID THE BANK MADE CERTAIN COMMITMENTS TO LENDING TO MINORITY AND LOWER INCOME GROUPS FIRST AMERICAN WAS CONTROLLED BY BCCI HOLDINGS LUXEMBOURG SA'S BANK OF CREDIT & COMMERCE INTERNATIONAL WHICH LAST YEAR FORFEITED ITS ASSETS TO A US COURT 9306210069 930621 NORTHWEST AIR CUTS FARES BUT NOT LIKE LAST YEAR NORTHWEST AIRLINES IS GIVING SUMMERTIME LEISURE TRAVELERS A SLICE OF THE CUTRATE AIR FARES THEY'VE BEEN WANTING UNTIL FRIDAY PASSENGERS CAN PURCHASE TICKETS AT UP TO A 30 DISCOUNT FOR TRAVEL IN THE US THROUGH SEPT 15 NORTHWEST A UNIT OF WINGS HOLDINGS INC MADE THE MOVE AS THE ENTIRE INDUSTRY BEGAN TO REALIZE THAT VACATION TRAVELERS WHO HAVE COME TO EXPECT DEEP SUMMER DISCOUNTS ARE NOT BOOKING FLIGHTS AT CURRENT PRICES LAST WEEK MAJOR CARRIERS SAID THEY WERE LOOKING FOR WAYS TO INVIGORATE WEAK SUMMER TRAFFIC WITHOUT HURTING FINANCIAL RESULTS CONSEQUENTLY THE NORTHWEST CUTS ARE MODEST IN COMPARISON WITH LAST SUMMER'S SALES WHICH PLEASED TRAVELERS BUT CAUSED AIRLINES TO LOSE MILLIONS WHILE OTHER AIRLINES ARE EXPECTED TO MATCH NORTHWEST IN COMPETING MARKETS THEY TOO HAVE SAID A SUMMER FARE WAR LIKE LAST YEAR'S IS OUT OF THE QUESTION UNDER THE SALE A PASSENGER CAN FLY ROUNDTRIP BETWEEN CHICAGO AND NEW YORK FOR 204 OR 30 LESS THAN THE CURRENT FARE THE ROUNDTRIP FARE BETWEEN BOSTON AND SEATTLE IS CUT BY 25 TO 418 TICKETS MUST BE PURCHASED SEVEN TO 14 DAYS PRIOR TO DEPARTURE DEPENDING ON DAYS OF TRAVEL THE FARES ARE NONREFUNDABLE AND INCLUDE OTHER RESTRICTIONS 9306210068 930621 CREDIT RATINGS SUMMIT BANCORP DEBT UPGRADED BY MOODY'S UJB IS UNDER REVIEW NEW YORK MOODY'S INVESTORS SERVICE INC UPGRADED THE DEBT RATING FOR ONE NEW JERSEY BANK COMPANY AND WILL CONSIDER UPGRADING ANOTHER CITING LOCAL BANKING STRENGTH FOR BOTH MOODY'S RAISED ITS RATING OF THE LONGTERM DEBT OF SUMMIT BANCORP CHATHAM NJ TO BAA2 FROM BAA3 ABOUT 35 MILLION OF DEBT IS AFFECTED THE RATINGS CONCERN SAID IT WAS REVIEWING FOR POSSIBLE UPGRADE THE LONGTERM AND SHORTTERM DEBT RATINGS OF PRINCETONBASED UJB FINANCIAL CORP WHOSE PRINCIPAL UNIT IS UNITED JERSEY BANK UJB'S SENIOR DEBT IS CURRENTLY RATED BAA3 AND ITS SHORTTERM COMMERCIAL PAPER IS RATED PRIME3 A TOTAL OF ABOUT 480 MILLION OF DEBT WOULD BE AFFECTED IN BOTH CASES MOODY'S CITED THE BANKS' ABILITY TO PROTECT THEIR LOCAL FRANCHISES FOR UJB IN EASTERN PENNSYLVANIA AS WELL AS NEW JERSEY AND FOR SUMMIT IN SEVERAL NORTHERN NEW JERSEY COUNTIES WHERE IT OPERATES MOODY'S SAID A HIGHER RATING FOR UJB WOULD BE PROMPTED BY ITS ABILITY TO CONTINUE IMPROVING ITS ASSET QUALITY WHILE PROTECTING ITS BANKING FRANCHISE SUMMIT HAS CONTINUED TO IMPROVE ITS COVERAGE OF NONPERFORMING ASSETS THROUGH A COMBINATION OF ASSET WRITEDOWNS ALLOCATION OF RESERVES AND CAPITALRAISING MOODY'S SAID IT ALSO HAS SUSTAINED RESPECTABLE CORE EARNINGS MOODY'S ADDED UJB HAD ASSETS OF ABOUT 138 BILLION AT MARCH 31 MOODY'S SAID AND SUMMIT HAD 39 BILLION 9306210067 930621 LITTON TO SPLIT ITS BUSINESSES INTO TWO FIRMS BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF LITTON INDUSTRIES INC IN A NOVEL RESPONSE TO THE SHRINKING US MILITARY BUDGET SAID IT WILL SPLIT INTO TWO COMPANIES IN ORDER TO EXPAND ITS COMMERCIAL BUSINESS AND POSSIBLY ITS DEFENSE BUSINESS NEWS OF THE PLANNED SPINOFF OF LITTON'S COMMERCIAL OPERATIONS SENT LITTON SHARES SOARING 8125 A SHARE TO 65125 A 14 RISE IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE THE NEW COMPANY WHICH HASN'T BEEN NAMED YET WILL INCLUDE LITTON'S OILFIELD SERVICES AND INDUSTRIAL AUTOMATION BUSINESSES WHICH TOGETHER HAVE ANNUAL REVENUE OF ABOUT 2 BILLION LITTON'S DEFENSE ELECTRONICS AND MARINE ENGINEERING AND PRODUCTION BUSINESSES WILL REMAIN WITH THE OLD COMPANY WHOSE INITIAL ANNUAL REVENUE WOULD BE ABOUT 35 BILLION AMONG LITTON'S MAJOR PRODUCTS ARE AEGIS DESTROYERS AND AMPHIBIOUS ASSAULT SHIPS BUILT FOR THE NAVY BY THE COMPANY'S INGALLS SHIPBUILDING UNIT AT PASCAGOULA MISS WE HAD TWO FUNDAMENTALLY DIFFERENT BUSINESSES HERE WITH NONEXISTENT SYNERGY ALTON J BRANN LITTON'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW ANALYSTS WELCOMED LITTON'S DECISION AS A SMART MOVE THAT HELPS SHAREHOLDERS IN THE SHORT TERM WHILE PAVING THE WAY FOR MORE EFFICIENT INVESTMENT IN THE FUTURE THE WAY THE MARKET VALUES THE TWO INDUSTRIES COMMERCIAL AND DEFENSE HAS MOVED VERY FAR APART SAID R JACKSON BLACKSTONE OF FIRST BOSTON SPINOFFS DON'T CREATE VALUE THEY HIGHLIGHT IT THIS LETS PEOPLE SEE HOW MUCH VALUE LITTON HAS IN ITS COMMERCIAL BUSINESS SPLITTING LITTON IN TWO RAISES THE POSSIBILITY THAT THE COMPANY MIGHT SELL OFF CORE DEFENSE OPERATIONS ALTOGETHER AS GENERAL DYNAMICS CORP HAS DONE BUT MR BRANN SAID THAT WHILE LITTON HAD CONSIDERED SELLING ITS DEFENSE BUSINESSES IT HAS CHOSEN TO KEEP THEM AND WOULD NOW CONSIDER ACQUISITIONS IT HAD AVOIDED BEFORE AMONG THEM HE SAID WOULD BE DEFENSE ELECTRONICS SOFTWARE AND MILITARY SUBSYSTEMS BUSINESSES AS A MIXED COMPANY IF YOU BUY SOMETHING IN DEFENSE YOUR SHAREHOLDERS SAY WHAT ARE YOU DOING YOU'RE SUBTRACTING FROM COMMERCIAL VALUE' MR BRANN SAID NOW OUR DEFENSE GUYS DON'T HAVE TO BE APOLOGETIC FOR BEING IN THE DEFENSE BUSINESS LITTON WOULD BE OBLIGED TO CONSIDER GOOD OFFERS FOR ITS DEFENSE BUSINESS HE ADDED BUT HE SAID THAT NO OFFERS ARE EXPECTED UNDER THE SPINOFF LITTON PLANS A SPECIAL STOCK DISTRIBUTION IN ABOUT SIX MONTHS GIVING SHAREHOLDERS ONE SHARE IN THE NEW COMPANY FOR EACH LITTON SHARE OWNED IN AN UNUSUAL ARRANGEMENT THE 52YEAROLD MR BRANN WILL BECOME CHAIRMAN AND CHIEF EXECUTIVE OF THE NEW COMPANY AND CHAIRMAN OF LITTON AS LITTON CHAIRMAN HE WILL SUCCEED ORION L HOCH 63 WHO IS RETIRING JOHN M LEONIS 59 CURRENTLY A SENIOR VICE PRESIDENT WILL SUCCEED MR BRANN AS PRESIDENT AND CHIEF EXECUTIVE OF LITTON MR BRANN SAID HE DOESN'T EXPECT THE SPLIT TO SHRINK LITTON'S 46000MEMBER WORK FORCE THE TRANSACTION WHICH WAS APPROVED BY LITTON DIRECTORS AND DOESN'T REQUIRE A SHAREHOLDER VOTE IS EXPECTED TO BE TAXFREE FOR LITTON AND ITS HOLDERS THE COMPANY SAID LITTON HAD NET INCOME OF 1744 MILLION OR 422 A SHARE ON SALES OF 569 BILLION IN THE YEAR ENDED JULY 31 1992 IN THE NINE MONTHS ENDED APRIL 30 1993 IT EARNED 137 MILLION OR 332 A SHARE UP FROM 129 MILLION OR 314 A SHARE A YEAR EARLIER IT ISN'T CLEAR HOW LITTON WILL CAPITALIZE THE DIVIDED COMPANIES EACH OF WHICH IT SAID IT EXPECTS TO HAVE INVESTMENTGRADE CREDIT RATINGS THE COMPANY CURRENTLY HAS TOTAL DEBT OF 1 BILLION AND MR BRANN SAID A LARGER PORTION OF DEBT WOULD BE ALLOCATED TO THE DEFENSE COMPANY ALTHOUGH HE DIDN'T ESTIMATE HOW MUCH LITTON ALSO SAID IT PLANS TO REDEEM ITS OUTSTANDING ZEROCOUPON CONVERTIBLE SUBORDINATED NOTES REPRESENTING MORE THAN 300 MILLION IN DEBT A LITTON SPOKESMAN SAID THE COMPANY WOULD REDEEM THE NOTES SOON IN ORDER TO CLEAR THE WAY FOR THE PROPOSED TRANSACTION THE SPINOFF WILL FREEZE THE 32 OF LITTON SHARES HELD BY UNITRIN INC AN INSURANCE HOLDING COMPANY CONTROLLED BY HENRY SINGLETON FORMER TELEDYNE INC CHAIRMAN LITTON RECEIVED A COMMITMENT FROM UNITRIN THAT IT DOESN'T INTEND TO SELL ITS SHARES FOR SEVERAL YEARS A NECESSARY CONDITION FOR THE TRANSACTION'S TAXFREE STATUS THE SPOKESMAN SAID LITTON HAS 393 MILLION SHARES OUTSTANDING ON FRIDAY MOODY'S INVESTORS SERVICE SAID IT WAS REVIEWING RATINGS ON LITTON'S SENIOR DEBT AND SUBORDINATED DEBT AND COMMERCIAL PAPER FOR POSSIBLE DOWNGRADES AND STANDARD & POOR'S CORP PLACED LITTON'S SENIOR DEBT AND SUBORDINATED DEBT ON ITS CREDITWATCH WITH NEGATIVE IMPLICATIONS NOTING THAT BECAUSE OF REDUCED BUSINESS DIVERSITY AFTER THE SPINOFF LITTON'S BUSINESS RISK WILL BE HIGHER AND CREDIT QUALITY WOULD PROBABLY DETERIORATE BUT THE RATINGS AGENCY SAID LITTON SHOULD REMAIN INVESTMENT GRADE 9306210066 930621 WORK & FAMILY A SPECIAL REPORT GETTING BY AN AMERICAN FAMILY TWO WORKING PARENTS THREE CHILDREN AND WHAT THEY THINK OF THEIR DAILY LIVES IMAGINE A SUCCESSFUL DUALCAREER COUPLE AND PEOPLE LIKE PHYLLIS AND SCOTT MYERS COME TO MIND DR MYERS 44 YEARS OLD AND MR MYERS 47 LIVE IN WINNETKA ILL WITH THEIR THREE CHILDREN TWINS KATHERINE AND ELIZABETH 14 AND FIVEYEAROLD JONATHAN THEIR COMBINED SIXFIGURE INCOME HAS ALLOWED THEM TO BUY A HUGE HOUSE IN ONE OF CHICAGO'S LOVELIEST SUBURBS THEY HAVE THE MEANS TO HIRE HOUSEKEEPERS TAKE SKIING VACATIONS AND PROVIDE ELIZABETH THE CHANCE TO STUDY IN FRANCE BUT THE MYERSES HAVE ALSO PAID A PRICE FOR THEIR COMFORTS AND SUCCESS DR MYERS WHO HOLDS A PHD IN EDUCATION LAMENTS THE FACT THAT SHE HAS SURRENDERED MANY OF HER CAREER GOALS FOR HER FAMILY YET FEELS SHE STILL DOESN'T HAVE ENOUGH TIME FOR HER HOME LIFE MR MYERS WISHES HE HAD MORE TIME TO NURTURE HIS MARRIAGE KATHERINE AND ELIZABETH COMPLAIN THAT THEIR PARENTS SOMETIMES MISS THEIR BASKETBALL GAMES AND THAT THEIR MOTHER BRINGS WORK HOME FROM THE OFFICE DR MYERS IS EXECUTIVE DIRECTOR OF THE ONETOONE LEARNING CENTER FOR CHILDREN AND ADULTS WITH LEARNING PROBLEMS TWO MILES FROM HER HOME SHE HAS WORKED OUTSIDE THE HOME ALL OF HER MARRIED LIFE EXCEPT FOR 2 1/2 YEARS AFTER HER TWINS WERE BORN DURING WHICH TIME SHE ATTENDED CLASSES AT THE UNIVERSITY OF CHICAGO AND WROTE HER DOCTORAL DISSERTATION HER CURRENT WORKDAY RUNS FROM 815 AM WHEN SHE PUTS JONATHAN ON THE BUS FOR HIS HALFDAY SCHOOL PROGRAM TO 630 PM SHE COMES HOME FOR ABOUT AN HOUR DURING THE DAY TO FEED JONATHAN DO LAUNDRY AND PREPARE THAT EVENING'S DINNER MR MYERS IS A PRINCIPAL PARTNER IN A 30MEMBER LAW FIRM IN DOWNTOWN CHICAGO A 50MINUTE TRAIN COMMUTE FROM HIS HOME WHEN TRYING A DIFFICULT CASE HE SAYS HE HAS WORKED AS MANY AS 26 DAYS IN A ROW WITHOUT WEEKENDS OFF HIS WORKDAY NORMALLY RUNS FROM 730 AM TO 630 PM THOUGH HOUSEKEEPERS HAVE AT TIMES HELPED WITH THE COOKING AND LAUNDRY DR MYERS SAYS HELP IS DIFFICULT TO FIND AND KEEP THE FAMILY IS CURRENTLY WITHOUT A HOUSEKEEPER HERE BEFORE THE FIREPLACE IN THEIR LIVING ROOM THE MYERSES EXCEPT FOR JONATHAN WHO IS WATCHING A VIDEO UPSTAIRS DISCUSS WITH WALL STREET JOURNAL STAFF REPORTER JUDITH VALENTE THE DIFFICULTY OF BALANCING CAREERS AND FAMILY LIFE WSJ HAS IT BEEN WORTH IT TO YOU TO PURSUE TWO DEMANDING CAREERS OR KNOWING WHAT YOU KNOW NOW WOULD YOU HAVE DONE THINGS DIFFERENTLY DR MYERS IT'S A TRADEOFF BUT ALL TOGETHER YES I FEEL IT IS WORTH IT FROM A PERSONAL STANDPOINT AND FROM WHAT I OBSERVE OF THE FAMILY'S STANDPOINT WSJ WHAT HAS MADE IT WORTH IT DR MYERS IT'S WHAT I WANT TO DO WITH MY LIFE I WANT A MORE VARIED LIFE THAN THE LIFE OF STAYING HOME I ALSO FEEL THERE IS MORE OF A PEER RELATIONSHIP WITH YOUR SPOUSE WHEN YOU ARE BOTH WORKING WITH REGARD TO THE CHILDREN I THINK THERE ARE MORE PLUSES THAN MINUSES ONE OF THE BIG PLUSES IS THAT THE KIDS ARE FAIRLY INDEPENDENT AND CAN SOLVE PROBLEMS ON THEIR OWN TO A GREATER EXTENT I THINK THAN IF I WAS AROUND ALL THE TIME OBVIOUSLY THERE IS ALSO A MONETARY BENEFIT AND A LIFESTYLE BENEFIT WSJ SCOTT HOW HAS IT BEEN FOR YOU MR MYERS FROM A FINANCIAL STANDPOINT THE FACT THAT WE HAVEN'T HAD A LOT OF PRESSING FINANCIAL CONCERNS HAS CERTAINLY MADE LIFE EASIER I CONFESS I WONDER HOW PEOPLE DO IT WHEN I SEE FAMILIES OF FOUR FIVE SIX CHILDREN MAKING 20000 A YEAR I THINK MY GOD WHAT'S STRESSFUL IS WHEN YOU'RE TRYING TO BE SOMEWHERE AND SHE'S TRYING TO BE SOMEWHERE INEVITABLY THERE ARE CONFLICTS WSJ GIRLS WHAT DO YOU THINK ABOUT THE LONG HOURS YOUR PARENTS WORK KATHERINE WELL WE HAVE TO FIGURE OUT RIDES AND HOW TO GET PLACES BY OURSELVES WSJ IS THAT HARD KATHERINE NOT REALLY WSJ DO YOUR FRIENDS HAVE THE SAME PROBLEM ELIZABETH WE HAVE TO DO MORE OF IT WITH OUR FRIENDS A LOT OF TIMES THEIR PARENTS CAN DRIVE THEM HOME THEY DON'T REALLY HAVE TO FIGURE OUT WHEN THEY'RE GOING SOMEWHERE HOW THEY CAN GET HOME DR MYERS YES BUT YOU GET PLACES TOO ELIZABETH YEAH RIGHT ON A BIKE WSJ DO MOST OF YOUR FRIENDS HAVE MOTHERS WHO WORK KATHERINE IN THE TOWN WE LIVE IN MORE MOTHERS ARE AT HOME BECAUSE THEY CAN DO IT ON THEIR BUDGET WSJ WHAT WOULD YOU LIKE MOM AT HOME MOM AT HOME PART TIME MOM WORKING FULL TIME KATHERINE WE MIGHT GET ON EACH OTHER'S NERVES IF SHE WAS HOME ALL THE TIME I DON'T THINK SHE'D BE HAPPY HOME ALL THE TIME BECAUSE IT WOULD BE JUST KIND OF BORING I DON'T WANT TO SIT HOME WHEN I GET OLDER WSJ WHY IS THAT KATHERINE BECAUSE I THINK A WOMAN IS ENTITLED TO A PROFESSIONAL SIDE OF HER LIFE I DON'T WANT TO SIT AROUND THE HOUSE I MEAN HOMEMAKERS DO WORK AND EVERYTHING BUT TO ME IT WOULDN'T BE VERY FULFILLING WSJ WHEN YOU LOOK AT YOUR MOM DO YOU EVER THINK SHE HAS TOO MUCH TO DO THAT IT'S EXTREMELY HARD JUGGLING WORK AND A FAMILY ELIZABETH SOMETIMES WE WANT TO TALK TO HER WHEN WE COME HOME FROM SCHOOL AND WE GET KIND OF ANNOYED THAT SHE'S ON THE PHONE ALSO EVEN THOUGH SHE WORKS PRETTY CLOSE IT'S KIND OF HARD FOR HER TO COME HOME IF WE WERE SICK OR SOMETHING SHE COULD COME PICK US UP BUT IT WOULD BE HARD DR MYERS REMEMBER WHEN YOU GOT MAD AT ME THAT ONE TIME BECAUSE YOU WERE SICK AND I SAID I'LL PICK YOU UP IN AN HOUR AT THE END OF MY MEETING YOU WEREN'T REAL HAPPY ABOUT THAT DR MYERS TO ELIZABETH THERE WAS AN INTERESTING THING THAT YOU SAID WHEN WE FIRST TALKED ABOUT THIS INTERVIEW DO YOU MIND IF I SAY WHAT IT WAS WHY DON'T YOU REPEAT IT ELIZABETH WHEN I WAS LITTLE IN FIRST GRADE I USED TO BE JEALOUS THAT EVERYONE ELSE'S MOM WAS HOME AND I WAS MAD BECAUSE MOM HAD TO WORK AND WASN'T HOME ALL THE TIME BUT THEN WHEN I GOT OLDER I LIKED IT BETTER THAT SHE WORKED BECAUSE SHE HAD OTHER FUNCTIONS BESIDES HER FAMILY WSJ WHAT AGE WERE YOU WHEN YOU CHANGED YOUR MIND ELIZABETH PROBABLY THIRD GRADE AROUND NINE YEARS OLD KATHERINE SHE WAS USUALLY THERE WHEN WE'D COME HOME FOR LUNCH IN GRADE SCHOOL DR MYERS THERE WASN'T A LUNCH PROGRAM IN THE SCHOOL SO I HAD TO GET HOME ON THEIR LUNCH HOUR FOR A WHILE WE HAD STUDENTS LIVE IN BUT THEY WERE GONE DURING THE DAY IT'S ALWAYS A JUGGLING ACT THE CHILD CARE THE HOUSE CARE IS ALWAYS ON YOUR MIND WE'VE USED JUST ABOUT EVERY MODEL THAT THERE IS FOR CHILD CARE BUT A LOT OF THE TIME I WAS HAVING TO COME HOME FOR LUNCH EVERY DAY TO BE HERE TO GET THEM ON AND OFF BUSES WSJ WAS THAT HARD ON YOU DR MYERS YOU'RE NEVER IN THE PLACE YOU'RE SUPPOSED TO BE AND YOU ARE ALWAYS FEELING GUILTY ABOUT WHERE YOU ARE YOU'RE ALWAYS RUSHING AROUND YOU'RE ALWAYS LATE AT THOSE TIMES I GET QUICK TO SNAP AT THE CHILDREN WHEN IT'S JUST ONE MORE DETAIL TO HANDLE AND YOU'VE ALREADY HANDLED THE 19TH AND 20TH ONE SO ONE RULE THAT WE FINALLY CAME UP WITH IS THAT I WASN'T GOING TO SOLVE ANY PROBLEMS OR HELP YOU WITH SCHOOL WORK AFTER 9 PM REMEMBER WSJ WHY DID YOU MAKE THAT A RULE WSJ BEING SHORT ELIZABETH YOU'D COME HOME FROM WORK AND YOU'D SAY YOU'RE NOT GOING TO TALK FOR 20 MINUTES DR MYERS ONE OF THE THINGS ABOUT LIVING CLOSE TO WHERE YOU WORK AND NOT HAVING MUCH OF A COMMUTE IS THAT YOU JUST HAVE NO TIME BY YOURSELF KATHERINE I THOUGHT YOU LIKED THE CLOSE COMMUTE DR MYERS I DO I'D LIKE TO HAVE A CLOSE COMMUTE AND COME HOME TO AN EMPTY HOUSE FOR 20 MINUTES YOU GUYS USED TO ALWAYS GREET ME AT THE DOOR WITH A PROBLEM REMEMBER KATHERINE YOU'D SAY MOM I HAVE TO DO THIS OR I NEED THIS FOR TOMORROW I'D SAY GIVE ME A BREAK WSJ WHAT IS A TYPICAL DAY FOR YOU PHYLLIS NOW THAT YOU NO LONGER HAVE A HOUSEKEEPER DR MYERS TODAY I PUT JONATHAN ON THE SCHOOL BUS AT 815 I WENT TO WORK WHEN I CAME HOME AT NOON TO TAKE HIM OFF THE BUS I PUT IN A LOAD OF LAUNDRY JONATHAN AND I HAD A QUICK LUNCH I FIXED DINNER THEN I TOOK JONATHAN TO HIS BABY SITTER THEN I WENT BACK TO WORK WSJ HE COMES HOME FOR LUNCH DR MYERS HE COMES HOME AND STAYS HOME HE JUST TURNED FIVE AND ONLY HAS SCHOOL HALF A DAY HE'S IN JUNIOR KINDERGARTEN WSJ YOU COME HOME ON YOUR LUNCH HOUR AND PREPARE DINNER DR MYERS IT'S NOT VERY RELAXING BUT I DO FEEL FORTUNATE THAT I GET TO TALK WITH JONATHAN AND PLAY WITH HIM A LITTLE BIT THEN I GO BACK TO WORK WSJ WHAT TIME DO YOU GET HOME DR MYERS MOST DAYS IT'S 6 OR 615 WSJ DID THE HOUSEKEEPER COOK DR MYERS SHE WOULD THROW A CHICKEN IN THE OVEN MR MYERS MAKE SALADS ELIZABETH I REMEMBER WHEN YOU CAME HOME FOR LUNCH WITH US YOU'D BE HOME FOR 10 MINUTES AND THEN GO BACK TO WORK DR MYERS YES I JUST WANTED TO CHECK IN I USED TO WORK AN HOUR AWAY I KEPT THE SAME JOB BUT WE MOVED CLOSER TO THE OFFICE SO I COULD BE NEARER TO THE FAMILY WSJ DID YOU GIVE UP A NICER HOUSE OR DR MYERS NO IT DIDN'T HAVE THAT TRADEOFF IT STRAPPED US FINANCIALLY BECAUSE THE NEW NEIGHBORHOOD WAS MORE EXPENSIVE SCOTT AND I HAVE MADE A BIG POINT OF PUTTING THE KIDS FIRST IN TERMS OF SEEING THAT THEY'RE NOT BEING SACRIFICED BECAUSE OF OUR CAREERS BUT THAT PUTS THE TWO OF YOU NEXT AND PUTS YOURSELF LAST YOU DON'T HAVE THE MENTAL HEALTH OF HAVING TIME TO JUST SIT DOWN AND READ A BOOK OR RELAX THAT TAKES ITS TOLL WSJ SCOTT WAS THERE EVER A POINT AT WHICH YOU DISCUSSED WHETHER OR NOT YOU SHOULD BE A DUALCAREER FAMILY OR WAS IT JUST UNDERSTOOD MR MYERS WE NEVER REALLY HAD ANY DISCUSSION IT WASN'T REALLY A CHOICE THAT ANYBODY MADE OTHER THAN THAT WAS THE WAY IT WAS GOING TO BE I DON'T REMEMBER EVER REALLY CONSCIOUSLY TALKING ABOUT IT DR MYERS THE DISCUSSIONS HAVE REALLY BEEN ABOUT WHOSE IS THE PRIMARY CAREER AND WHOSE IS THE SECONDARY CAREER IT'S AN ISSUE I'M STILL NOT TOTALLY COMFORTABLE WITH WSJ WHOSE CAREER IS MORE IMPORTANT DR MYERS SCOTT'S AND WE DISCUSSED THAT EARLY ON EVEN BEFORE WE GOT MARRIED HE SAID HIS CAREER WOULD BE MORE IMPORTANT AND THAT'S IT MR MYERS I DON'T REMEMBER THAT FIAT DR MYERS I DO I'VE CHOSEN TO DEVELOP MY CAREER AS ONE THAT HAS FLEXIBILITY FAR MORE THAN HIS DOES I CAN GET TO THEIR SCHOOL EVENTS DURING THE DAY WHICH I THINK IS REAL IMPORTANT FOR KIDS WSJ WHAT ABOUT YOU GIRLS WHAT DO YOU THINK OF THE TRADEOFFS YOUR MOTHER HAS MADE ELIZABETH SHE ALWAYS WORKED I CAN'T REALLY SAY WHAT IT WOULD BE LIKE NOT TO HAVE HER WORK KATHERINE IT DOESN'T SEEM LIKE WE HAD A SIGNIFICANT LOSS I'VE NEVER FELT ANY KIND OF HOLE OUT THERE THAT NEEDS TO BE FILLED EMOTIONALLY ELIZABETH WE HAD HOUSEKEEPERS BABY SITTERS DR MYERS I THINK KIDS NEED SOME DISTANCE FROM THEIR PARENTS TO GROW IT'S REALLY IMPORTANT FOR KIDS TO MAKE MISTAKES ACCEPT THEIR MISTAKES AND LEARN FROM THEM I THINK THAT A REAL PLUS OF MY WORKING IS THAT YOU CHILDREN ARE LEARNING TO BE SELFSUFFICIENT AND FEEL GOOD ABOUT DECISIONS YOU MAKE KATHERINE IT'S TRUE WOMEN CAN OFFER THINGS PROFESSIONALLY FOR THE ADVANCEMENT OF SOCIETY ELIZABETH IT WAS ALSO GOOD THAT WE HAD A ROLE MODEL MOM ALWAYS SAYS WHEN SHE WAS GROWING UP THERE WERE NO SPORTS OR ANYTHING FOR GIRLS YOUR CHOICES WERE TO BE A TEACHER A NURSE OR A MODEL WSJ PHYLLIS AND SCOTT HAVE THERE BEEN ANY STRAINS ON YOUR MARRIAGE DR MYERS WE'VE DISCUSSED THAT REALLY AT LENGTH WHAT HAS BEEN DIFFICULT ON OUR RELATIONSHIP IS THE LACK OF NURTURING YOU HAVE TO BE SO FOCUSED ON GETTING THINGS DONE AT THE DINNER TABLE I'M TALKING ABOUT THE SCHEDULE FOR TONIGHT AND TOMORROW THERE'S NOT MUCH HUMOR IN THAT THERE'S NOT MUCH PLAY OR NURTURING WSJ THERE IS NOT A LOT OF TIME FOR JUST PURE FUN DR MYERS AND SPONTANEITY MR MYERS I THINK THAT'S TRUE WHEN TWO PEOPLE ARE IN CAREERS WHERE THEY HAVE SIGNIFICANT TIME DEMANDS ON THEM WHICH BOTH OF OURS CLEARLY DO IT LIMITS THE AMOUNT OF TIME AVAILABLE FOR OTHER PURPOSES A HOUSEKEEPER CAN HELP WITH HOUSEHOLD CHORES BUT THERE ARE CERTAIN LOGISTICS THAT ONLY THE PARENTS CAN FIGURE OUT BY THE TIME YOU ARE FINISHED IT'S 10 O'CLOCK AT NIGHT WSJ HOW WOULD YOU LIKE THINGS TO BE DR MYERS IN THE BEST OF ALL WORLDS IT WOULD BE A 28HOUR DAY ONE MORE HOUR FOR SLEEPING AN HOUR MORE FOR THE CHILDREN AN HOUR MORE FOR MY SPOUSE AND AN HOUR JUST TO MYSELF YOU ARE SO WASTED BY THE END OF THE DAY YOU REALLY DON'T HAVE TIME FOR EACH OTHER IT BECOMES VERY MUCH OF A BUSINESS RELATIONSHIP WITH WHAT HAS TO GET DONE AND WHAT THE NEXT DAY WILL BRING THE DISPOSAL NEEDS FIXING OR WHATEVER MR MYERS IT'S ALWAYS SOMETHING WSJ WHAT WOULD HELP DR MYERS ONE THING THAT I'VE NOTICED IS THAT BUSINESSES ARE HAVING SMALLGROUP DISCUSSIONS OR NOONTIME WORKSHOPS WHERE EMPLOYEES TALK ABOUT THESE ISSUES I OFTEN GIVE PARENTING WORKSHOPS JUST BEING ABLE TO HEAR OTHER PEOPLE WITH THE SAME CONCERNS AND LISTEN TO HOW THEY COPE HELPS A LOT YOU DON'T FEEL SO ALONE WSJ IS THERE ANYTHING YOU YOURSELVES CAN DO DIFFERENTLY DR MYERS I CAN MAKE FEWER DEMANDS ON WHAT THE HOUSE NEEDS TO LOOK LIKE I'M AFRAID WE MAY MAKE EXCESSIVE DEMANDS ON OUR DAUGHTERS TO HELP OUT AT HOME I ALSO NEED TO BACK OFF ON DEMANDS FOR THE JOB WHEN YOU'RE AT THE TOP AND YOU DELEGATE AUTHORITY YOU EXPECT EVERYTHING TO BE HANDLED THE WAY YOU WOULD HAVE DONE IT AT SOME POINT YOU HAVE TO BACK OFF IT MAY OR MAY NOT BE THE WAY I WOULD HAVE DONE IT BUT I'VE GOT TO ACCEPT IT IT'S ALSO PART OF TURNING 40LEARNING TO ACCEPT LESS AS BEING MORE WSJ GIRLS IS THERE SOMETHING YOU WOULD HAVE CHANGED IF YOU COULD ELIZABETH WITH BASKETBALL I REMEMBER YOU GUYS CAME TO ALMOST EVERY GAME BUT YOU WEREN'T THERE AT EVERY GAME I WOULD HAVE RATHER HAD YOU THERE AT EVERY GAME MR MYERS YOU WANTED MORE ATTENDANCE KATHERINE ONCE IN A WHILE THE SCHOOL WOULD SCHEDULE A PLAY OR SOMETHING DURING THE DAY THEY'RE NOT REALLY CONSIDERING THE KIDS WITH PARENTS WHO HAVE SCHEDULES TO MAINTAIN DR MYERS IT'S FRUSTRATING THAT THE SCHOOLS ARE DRAGGING THEIR HEELS ON MOVING INTO THE 20TH CENTURY WITH REGARD TO DUAL CAREERS WSJ GIRLS HAVE YOU EVER FELT PRESSURED MORE THAN OTHER KIDS KATHERINE I THINK WE HAVE MORE RESPONSIBILITY THAN OTHER KIDS AT TIMES KIND OF BECAUSE WE HAVE A FIVEYEAROLD BROTHER WE KNOW LOTS OF KIDS WHO DON'T DO THE DISHES ELIZABETH WE GET DINNER ON THE TABLE AND WATCH JONATHAN ALL THE TIME DR MYERS I THINK THEY TALK A LITTLE DIFFERENTLY ABOUT THIS NOW THAT THEY ARE 14 I REMEMBER WHEN THEY WERE EIGHT AND I HAD A CONSULTING JOB AT A HOSPITAL I HAD TO LEAVE AT 645 IN THE MORNING AND SCOTT LEFT 45 MINUTES LATER THE GIRLS HAD TO GET THEMSELVES OUT OF THE HOUSE AND LOCK THE DOOR IT MADE ME WORRIED SICK WSJ SO YOU CHANGED JOBS DR MYERS IT WAS JUST A PARTTIME CONSULTING JOB AND I KNEW IT HAD A BEGINNING AND AN END WITH RESPECT TO A CAREER I FEEL THAT I'VE GIVEN UP SOME OPTIONS I CREATED MY OWN GLASS CEILING BY SOME OF THE CHOICES I'VE MADE THAT'S FRUSTRATING AT TIMES WSJ WHAT KIND OF CAREER WOULD YOU HAVE WISHED FOR DR MYERS I HAVE MY SCHOOL SUPERINTENDENT CERTIFICATE SCHOOL PRINCIPAL CERTIFICATION AND A DOCTORATE FROM THE UNIVERSITY OF CHICAGO I PROBABLY WOULD HAVE DONE SOMETHING IN SCHOOL ADMINISTRATION A JOB I PASSED UP AFTER FINISHING MY DOCTORATE WAS WITH THE CITY OF WAUKEGAN AS DIRECTOR OF READING AND LANGUAGE ARTS FOR 24 SCHOOLS IF I HAD TAKEN IT AT THIS POINT I MIGHT BE ASSISTANT SUPERINTENDENT IF I HAD DONE THE JOB WELL KATHERINE I'M GLAD YOU DIDN'T TAKE THAT DR MYERS I REALIZED I COULDN'T DO IT AND BE AS READILY AVAILABLE TO THE KIDS I DO HAVE FLEXIBLE HOURS NOW WSJ SCOTT HAVE YOU EVER THOUGHT ABOUT STAYING AT HOME MR MYERS I'VE SAID THIS TO PHYLLIS MANY TIMES IF YOU CAN DUPLICATE FROM A FINANCIAL STANDPOINT WHAT WE'RE DOING HEY I'LL STAY HOME NO PROBLEM I SAY THAT SOMEWHAT FACETIOUSLY SO DON'T TAKE ME TOO SERIOUSLY WSJ YOU DON'T THINK YOU'D ENJOY IT MR MYERS THE ANSWER IS THAT I PROBABLY DON'T KNOW DR MYERS I DON'T THINK HE WOULD MR MYERS I DON'T THINK I WOULD EITHER FROM THE PERSPECTIVE OF AN EGO SATISFACTION I LIKE ACCOMPLISHING SOMETHING I'M SORT OF TASKORIENTED I DON'T WANT TO OVEREMPHASIZE THIS BUT THERE CERTAINLY ARE FINANCIAL CONSIDERATIONS WSJ WHAT'S YOUR DAY LIKE SCOTT MR MYERS I LEAVE AT 730 AND GET HOME AT 630 AT NIGHT WSJ YOU'VE BEEN A COACH MR MYERS I WAS WHEN THE GIRLS WERE YOUNGER WHEN THEY WERE IN SECOND OR THIRD GRADE WE'D SCHEDULE PRACTICE FOR SOCCER ON FRIDAY AFTERNOON AT 4 OR 430 AT THE TIME I WAS A PARTNER AT THE FIRM I WAS WITH AND RESPONSIBLE BY AND LARGE FOR MY OWN WORK WSJ SO YOU COULD LEAVE WHEN YOU WANTED MR MYERS YES BUT IF IT WAS NECESSARY TO GO IN ON SATURDAYS OR SUNDAYS I DID THAT ALSO THERE WOULD BE OTHER FATHERS THAT WOULD KIND OF ACT LIKE COCOACHES AND WE'D SAY I'M GOING TO BE OUT OF TOWN THIS WEEKEND WOULD YOU TAKE THE TEAM WSJ DO YOU WORK LATE NIGHTS KATHERINE WHEN HE'S IN TRIAL WSJ HOW DOES THAT GO MR MYERS IT GOES 24 HOURS A DAY UNTIL YOU'RE DONE IT LITERALLY IS GET UP AND GO TO WORK AND COME HOME WHEN YOU'RE DONE THEN GO TO SLEEP AND GET UP THE NEXT DAY AND DO IT ALL OVER AGAIN I'VE WORKED AS MANY AS 20SOME DAYS IN A ROW I THINK MY RECORD IS 26 DAYS WITHOUT A DAY OFF WSJ GIRLS WHEN YOU DON'T SEE HIM DOES THAT MAKE YOU DEPEND MORE ON YOUR MOM KATHERINE I THINK THERE WOULD BE A LOSS IF WE DIDN'T HAVE EITHER A FATHER THERE OR A MOTHER THERE I REMEMBER I ALWAYS WOULD CALL MOM AT WORK BEFORE DAD I FELT BAD ABOUT INTERRUPTING DAD AT WORK DR MYERS I DON'T LIKE SOME OF THE THINGS THAT HAPPEN TO A FAMILY WHEN BOTH PARENTS ARE GOING IN OPPOSITE DIRECTIONS THERE IS A NURTURING THAT IS LOST SCOTT IS A VERY ACTIVE PARENT PARTLY BECAUSE WE BOTH HAVE CAREERS IN SITUATIONS WHERE A HEAD OF A HOUSEHOLD DOES EXTENSIVE TRAVELING THERE IS REALLY MORE SINGLE PARENTING GOING ON WSJ SCOTT DO YOU EVER WISH YOU AND YOUR WIFE COULD SPEND MORE TIME WITH EACH OTHER ELIZABETH YOU TAKE VACATIONS MR MYERS ONE OF THE THINGS WE'VE TRIED TO DO IN THE LAST COUPLE YEARS IS TAKE VACATIONS ALONE AND MORE FREQUENT VACATIONS WSJ YOU MEAN TAKE A COUPLE DAYS HERE A COUPLE DAYS THERE MR MYERS YES WE'LL TIE IN SOME BUSINESS AS WELL I HAVE CLIENTS IN OTHER PARTS OF THE COUNTRY WE CAN GO TO PHOENIX AND MAKE IT A WORKING VACATION JUST THE TWO OF US WSJ WE'VE TALKED A LOT ABOUT THE TRADEOFFS WHAT DO YOU SEE AS THE BENEFITS OF BEING A TWOEARNER HOUSEHOLD ELIZABETH VACATIONS I'M GOING TO FRANCE THIS SUMMER ON THE EXCHANGE PROGRAM FOR SCHOOL AND I'M SURE THAT IS A BENEFIT FROM HAVING BOTH PARENTS WORK BECAUSE NO DOUBT IT IS VERY EXPENSIVE WSJ WHAT ELSE KATHERINE MAYBE WE COULDN'T AFFORD THIS HOUSE IF WE DIDN'T HAVE TWO INCOMES WE GO SKIING THAT WAS FUN DR MYERS WITH DUAL CAREERS YOU HAVE MORE MOBILITY TO MAKE CHANGES IT GIVES YOU THE FREEDOM TO SAY IS THIS REALLY WHAT I WANT TO DO YOU AREN'T OPERATING WITH THE PRESSURE OF BEING THE ONLY BREADWINNER ELIZABETH THAT'S ONE OF THE REASONS I WANT TO WORK WHEN I GROW UP IF I GET DIVORCED OR SOMETHING THEN I WON'T BE DEPENDING ON SOMEONE ELSE I'LL HAVE MY OWN INCOME AND I CAN FEEL SELFSUFFICIENT I'D RATHER FEEL SELFSUFFICIENT THAN LET CHILD SUPPORT PAY FOR MY KIDS I'LL ALREADY HAVE A JOB KATHERINE I ENJOY WORKING I'M GOALORIENTED I KNOW I WANT TO DO SOMETHING PROFESSIONALLY I DON'T THINK I'D GET THE SAME SATISFACTION OUT OF STAYING AT HOME WSJ WOULD YOU LIKE TO HAVE FAMILIES AS WELL AS CAREERS KATHERINE I HAVEN'T DECIDED ELIZABETH I'M GOING TO HAVE ONE BUT I'M GOING TO GET MY CAREER STARTED BEFORE I GET MARRIED I'D LIKE TO GO INTO THE MEDICALSCIENCE FIELD I THOUGHT ABOUT BECOMING AN OBSTETRICIAN BUT THEY GET SUED A LOT I WOULD REALLY LIKE TO RESEARCH CURES AND MAKE SOME BREAKTHROUGHS AND FIND WAYS TO HELP PEOPLE THAT ARE SICK KATHERINE I THINK I'D LIKE TO GO INTO LAW OR POLITICS I THINK THE COUNTRY NEEDS SOME LEADERSHIP WSJ WOULD YOU TWO HAVE DONE ANYTHING DIFFERENTLY THAN YOUR PARENTS DID ELIZABETH I THINK I WILL PROBABLY WORK FULL TIME MOM ONLY WORKS PART TIME DR MYERS I WORK FLEXIBLE HOURS ELIZABETH BUT DAD WORKS MORE HOURS THAN YOU DO YOU WORK MORE AT HOME DR MYERS I FEEL A LITTLE PIQUED WHEN I HEAR THAT YOU SAY THAT BECAUSE DAD WORKS 50 TO 60 HOURS A WEEK BUT IF HE WORKED A MORETYPICAL WORKWEEK OF 40 HOURS AS I DO YOU WOULDN'T THINK THAT THE GIRLS SEE ME ON THE PHONE AT HOME AND I'M WORKING BUT THEY DON'T NECESSARILY CONSIDER THAT WORK WSJ HOW ABOUT YOU SCOTT ANY REGRETS MR MYERS NO OTHER THAN THAT I WOULD HAVE PROBABLY PRACTICED IN A PLACE WITH BETTER WEATHER DR MYERS I DON'T KNOW THAT I'VE FULLY COME TO TERMS WITH PUTTING MANY CAREER GOALS ASIDE I DO REGRET IT SOMETIMES IF I'D WRITE THE BOOK I KNOW IS IN ME IT MAY SATISFY THAT PART OF MY CAREER ENERGIES 9306210065 930621 MITSUBISHI TO EXPORT A USMADE SEDAN TO EUROPEAN MARKET SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S MITSUBISHI MOTORS CORP WILL SHIP CARS MANUFACTURED AT A US SUBSIDIARY TO EUROPE STARTING EARLY NEXT YEAR COMPANY OFFICIALS SAID MITSUBISHI MOTORS HOPES TO BEGIN EXPORTING 10000 USMADE GALANT MODEL SEDANS TO THE EUROPEAN MARKET STARTING BETWEEN JANUARY AND APRIL THE GALANT SEDAN CURRENTLY IS PRODUCED ONLY IN JAPAN MITSUBISHI WILL EXPORT ABOUT 20 OF THE NECESSARY PARTS INCLUDING AXLES AND ELECTRONIC EQUIPMENT CHRYSLER CORP HIGHLAND PARK MICH WILL PROVIDE THE REMAINING PARTS A MITSUBISHI SPOKESMAN SAID DIAMOND STAR MOTORS THE US SUBSIDIARY BASED IN ILLINOIS CURRENTLY PRODUCES ABOUT 140000 UNITS ANNUALLY ALTHOUGH FACTORY FACILITIES HAVE THE CAPACITY TO PRODUCE 240000 UNITS YEARLY WE'D LIKE TO BOOST THAT OUTPUT THE SPOKESMAN SAID A SPOKESWOMAN ALSO FROM MITSUBISHI SAID WE MIGHT REDUCE OUTPUT OF THE ECLIPSE MODELS TO MAKE ROOM FOR THE GALANT THE ECLIPSE IS CURRENTLY DSM'S TOP PRODUCT BY VOLUME REPRESENTING 93 OF THE FACTORY'S 43000UNIT OUTPUT SO FAR THIS YEAR THE SPOKESWOMAN SAID THE MOVE COMES IN RESPONSE TO THE SURGING YEN WHICH MAKES EXPORTING FROM JAPAN LESS PROFITABLE AND THE EUROPEAN COMMUNITY'S REGULATIONS ON CARS IMPORTED FROM JAPAN THE SPOKESWOMAN SAID IN CALENDAR 1993 JAPAN IS PROHIBITED FROM EXPORTING MORE THAN 1089000 CARS TO THE EC 9306210064 930621 INTERNATIONAL TAIWAN SAYS ACCORD WITH LOCKHEED SETS TECHNOLOGY TRANSFER TAIPEI TAIWAN TAIWAN'S 6 BILLION PURCHASE OF US WARPLANES WILL BE ACCOMPANIED BY A TECHNOLOGYTRANSFER AGREEMENT YANG SHIHCHIEN A VICE MINISTER FOR ECONOMIC AFFAIRS TOLD A LEGISLATIVE HEARING FRIDAY THE GOVERNMENT HAS REACHED A PRELIMINARY ACCORD WITH LOCKHEED CORP THAT WILL ALLOW TAIWANESE COMPANIES TO SUPPLY PARTS AND SERVICING FOR F16 WARPLANES SCHEDULED TO BE DELIVERED TO THE COUNTRY'S AIR FORCE LATER THIS DECADE THE ACCORD WOULD REPRESENT A SIGNIFICANT TURNAROUND IN A CONTRACT ORIGINALLY DESIGNED TO BENEFIT ONLY US MANUFACTURERS WITH NO SUPPLY ROLE FOR TAIWANESE INDUSTRY MR YANG SAID LOCKHEED WILL SUPPLY TECHNOLOGY THAT WILL ASSIST TAIWAN'S FLEDGLING AEROSPACE INDUSTRY TO MAKE A MAJOR CONTRIBUTION TO THE DEAL IN ITS LATER STAGES BY THE YEAR 2000 THE PRODUCTION VALUE OF REPAIRS AND MAINTENANCE ON AIRCRAFT BODIES ELECTRONIC SYSTEMS AND ENGINES COULD TOTAL BETWEEN 1 BILLION AND 12 BILLION HE SAID MR YANG ESTIMATED THAT THE AGREEMENT COULD PRODUCE PARTS ORDERS AMOUNTING TO 500 MILLION TO 700 MILLION A LOCKHEED SPOKESMAN CALLED THAT ESTIMATE ACCURATE AND SAID THE TALKS ARE VERY CLOSE TO PRODUCING A FINAL AGREEMENT 9306210063 930621 BUSINESS BRIEF JP MORGAN & CO FIRM MARSH & MCLENNAN PLAN INSURANCE INVESTMENTS JP MORGAN & CO NEW YORK AND MARSH & MCLENNAN COS ARE LAUNCHING A GLOBAL PARTNERSHIP TO INVEST IN THE INSURANCE INDUSTRY PEOPLE FAMILIAR WITH THE FUND SAY THE FUND WHICH WILL TOTAL BETWEEN 500 MILLION AND 1 BILLION WILL INVEST IN STARTUP COMPANIES AND EXISTING INSURERS BUT ITS MOST PROMINENT INVESTMENT WILL LIKELY BE IN AILING LLOYDS OF LONDON LLOYDS RECENTLY ANNOUNCED IT IS SEEKING CAPITAL FROM CORPORATE INVESTORS TO COMPLEMENT THAT PUT UP BY WEALTHY INDIVIDUALS BOTH JP MORGAN AND MARSH & MCLENNAN WILL TAKE STAKES IN THE FUND CALLED THE TRIDENT FUND AND RAISE THE REMAINING AMOUNT FROM INSTITUTIONAL INVESTORS JP MORGAN AND MARSH & MCLENNAN A NEW YORK INSURANCE BROKER ARE ALREADY PARTNERS IN MID OCEAN REINSURANCE CO A BERMUDABASED PROPERTY CATASTROPHE REINSURANCE COMPANY 9306210062 930621 BUSINESS BRIEF BERGEN BRUNSWIG CORP OFFER TO BUY FRANCE'S OCP IS DROPPED BY FIRM PARTNER BERGEN BRUNSWIG CORP ORANGE CALIF SAID IT AND A FRENCH PARTNER WITHDREW THEIR BID TO ACQUIRE FRANCE'S LARGEST PHARMACEUTICAL DISTRIBUTOR PARISBASED OFFICE COMMERCIAL PHARMACEUTIQUE SA BERGEN OFFICIALS SAID THEY PLANNED TO DISCLOSE EARLY THIS WEEK THE REASONS FOR WITHDRAWING THE BID WHICH TOTALED ABOUT 443 MILLION COMPANY OFFICIALS HOWEVER SAID A GERMAN COMPANY GEHE AG BID HIGHER GEHE IS A UNIT OF FRANZ HANIEL & CIE BERGEN'S INVESTMENT WOULD HAVE BEEN ABOUT 90 MILLION IF THE OFFER WERE CONSIDERED AND ACCEPTED BERGEN'S PARTNER COOPERATION PHARMACEUTIQUE FRANCAISE FRANCE'S LARGEST SUPPLIER OF OVERTHECOUNTER PRODUCTS TO PHARMACIES WOULD HAVE BEEN THE MAJOR SHAREHOLDER BERGEN A HEALTHSERVICE AND CONSUMER ELECTRONICS DISTRIBUTOR WOULD HAVE TAKEN A 20 STAKE IN OCP WITH THE RIGHT TO INCREASE ITS INTEREST TO 34 OR MORE IN CERTAIN CIRCUMSTANCES IN TRADING FRIDAY ON THE AMERICAN STOCK EXCHANGE BERGEN BRUNSWIG CLOSED AT 18375 DOWN 125 CENTS 9306210061 930621 BUSINESS BRIEF REPAP ENTERPRISES INC COMPANY EXPECTS TO RECORD A SECONDQUARTER NET GAIN REPAP ENTERPRISES INC SAID AFTER EIGHT CONSECUTIVE QUARTERS OF CASH LOSSES IT WILL RECORD POSITIVE CASH FLOW IN THE SECOND QUARTER REFLECTING PRODUCTIVITY GAINS HIGH LUMBER PRICES AND REBOUNDING PRICES FOR ITS CORE COATEDPAPER PRODUCTS GEORGE PETTY CHAIRMAN AND CHIEF EXECUTIVE SAID THE MONTREAL FORESTPRODUCTS COMPANY MAY SELL SHARES IN ITS COATEDPAPER BUSINESS OR IN ITS WESTERN CANADIAN LUMBER OPERATION THE COMPANY RACKED UP 390 MILLION CANADIAN DOLLARS US306 MILLION IN LOSSES AS PAPER MARKETS SLUMPED DURING THE PAST TWO YEARS MR PETTY PREDICTED THAT RISING COATEDPAPER PRICES WILL ENABLE REPAP TO RETURN TO PROFITABILITY BY NEXT YEAR AND TO REDUCE DEBT SUBSTANTIALLY OVER THE NEXT FEW YEARS FOR THE FIRST QUARTER REPAP HAD A LOSS OF C542 MILLION OR 64 CANADIAN CENTS A SHARE ON REVENUES OF C3085 MILLION IN NATIONAL OVERTHECOUNTER TRADING IN THE US ON FRIDAY REPAP CLOSED AT 39375 UP 6875 CENTS OR 21 9306210060 930621 CREDIT RATINGS TIFFANY & CO NEW YORK STANDARD & POOR'S CORP SAID IT PUT TIFFANY'S SUBORDINATED DEBT RATING UNDER REVIEW FOR POSSIBLE DOWNGRADE CITING THE COST OF TIFFANY'S SHIFT IN JAPANESE RETAILING STRATEGY S&P PLACED THE TRIPLEBPLUS RATING ON TIFFANY'S EURODOLLAR ISSUE OF CONVERTIBLE SUBORDINATED DEBENTURES ON ITS CREDITWATCH THE IMPLIED RATING FOR TIFFANY SENIOR DEBT IS SINGLEAMINUS S&P SAID THE REVIEW IS PROMPTED BY THE JEWELER AND LUXURYGOODS RETAILER'S RECENT DECISION TO ASSUME FULL CONTROL OF RETAILING OF ITS MERCHANDISE IN JAPAN FROM DEPARTMENT STORE CHAIN MITSUKOSHI LTD AND THE UNFAVORABLE FINANCIAL IMPACT OF THAT DECISION TIFFANY SET UP A 575 MILLION RESERVE TO PROVIDE FOR THE RETURN OF MERCHANDISE PREVIOUSLY SOLD TO MITSUKOSHI WHICH REDUCES TIFFANY'S EQUITY AND COULD HURT CASH FLOW S&P SAID IN ADDITION TIFFANY'S DECISION IN JAPAN MEANS IT WILL ASSUME A GREATER AMOUNT OF BUSINESS RISK IN THAT MARKET AND IT COMES AT A TIME WHEN ITS RESULTS HAVE BEEN DEPRESSED BY POOR ECONOMIC CONDITIONS AND HIGH STARTUP COSTS IN ITS EXPANSION S&P SAID 9306210059 930621 CREDIT MARKETS BOND PRICES END LITTLE CHANGED UNDERWRITERS INVESTORS WRANGLE OVER TRUMP CASINO ISSUE BY CONSTANCE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BOND PRICES ENDED LITTLE CHANGED FRIDAY IN SLUGGISH TRADING AGAIN AS INVESTORS REMAINED UNEASY ABOUT THE MARKET'S PROSPECTS BUT AN ECONOMIST AT ONE BIG SECURITIES FIRM BELIEVES THE MARKET IS POISED TO RALLY IN ITS LATEST ISSUE OF COMMENTS ON CREDIT SALOMON BROTHERS INC'S CHIEF ECONOMIST JOHN LIPSKY WRITES THE CHANCES ARE GROWING THAT US BOND YIELDS WILL TEST THEIR RECENT 665 LOW IN THE COMING WEEKS ON FRIDAY THE BOND MARKET'S BENCHMARK SECURITY THE 30YEAR TREASURY BOND ENDED AT A PRICE OF 104 1/32 TO YIELD 680 COMPARED WITH 103 30/32 TO YIELD 681 THURSDAY MR LIPSKY'S BULLISH BOND MARKET FORECAST IS BASED ON DOMESTIC AND INTERNATIONAL FACTORS ON THE DOMESTIC SIDE HE BELIEVES THE OUTCOME OF THE FISCAL POLICY DEBATE IN WASHINGTON WILL LIKELY INCLUDE NEW TAXES WHICH WILL REDUCE THE PROSPECTS OF A MARKED NEW SPEEDUP IN ECONOMIC GROWTH THAT OUTLOOK ALONG WITH DECLINING OIL PRICES WILL CAUSE INFLATION EXPECTATIONS TO EASE HE BELIEVES INTERNATIONAL FACTORS THAT SHOULD BOLSTER THE BOND MARKET INCLUDE THE RENEWED STRENGTH OF THE DOLLAR WHICH MR LIPSKY SAYS WILL ENHANCE THE ATTRACTIVENESS OF DOLLARDENOMINATED ASSETS IN THE CORPORATE BOND MARKET MOST ATTENTION WAS FOCUSED ON THE WRANGLING BETWEEN UNDERWRITERS AND INVESTORS OVER A TWOPART JUNK BOND OFFERING FROM ONE OF DONALD TRUMP'S ATLANTIC CITY CASINOS ALTHOUGH DEMAND FOR THE JUNK BONDS WAS STRONG INVESTORS NEVERTHELESS WANTED A YIELD ABOVE 11 ON THE TRUMP PLAZA FUNDING INC EIGHTYEAR FIRSTMORTGAGE NOTES BUT MR TRUMP ALREADY WAS BOASTING THAT THE YIELD WOULD BE BELOW 11 THE COMPROMISE THE 330 MILLION OF FIRSTMORTGAGE NOTES WERE PRICED WITH A 10875 COUPON BUT SOLD AT A DISCOUNTED PRICE OF 98693 WHICH PROVIDED A YIELD OF 11125 STILL THE YIELD WAS LOWER THAN HAD BEEN EXPECTED AND THE SIZE OF THE OFFERING WAS INCREASED FROM 315 MILLION TRUMP PLAZA HOLDING ASSOCIATION'S 60 MILLION OF 10YEAR PAYINKIND NOTES WERE PRICED AT PAR AT 125 PAYINKIND SECURITIES MAKE INTEREST PAYMENTS IN THE FORM OF ADDITIONAL SECURITIES INSTEAD OF CASH 9306210058 930621 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 13/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 311 30 TO 44 DAYS 312 45 TO 119 DAYS 318 120 TO 149 DAYS 320 150 TO 179 DAYS 318 180 TO 229 DAYS 338 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 318 30 DAYS 320 60 DAYS 323 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 270 THREE MONTHS 285 SIX MONTHS 308 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 312 ONE MONTH 317 THREE MONTHS 330 SIX MONTHS BANKERS ACCEPTANCES 309 30 DAYS 311 60 DAYS 314 90 DAYS 319 120 DAYS 321 150 DAYS 325 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 3/8 3 1/4 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 3/4 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 14 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 307 13 WEEKS 319 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 713 60 DAYS 721 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 712 60 DAYS 722 STANDARD CONVENTIONAL FIXEDRATEMORTGAGES 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 9306210057 930621 SENATE PANEL SETS JULY 20 FOR HEARING ON GINSBURG WASHINGTON THE SENATE JUDICIARY COMMITTEE SAID IT WOULD BEGIN CONFIRMATION HEARINGS FOR SUPREME COURT NOMINEE RUTH BADER GINSBURG ON JULY 20 IF THE HEARINGS GO SMOOTHLY JUDGE GINSBURG COULD BE CONFIRMED BY THE FULL SENATE BEFORE ITS AUGUST RECESS GIVING HER PLENTY OF TIME TO PREPARE FOR THE BEGINNING OF THE NEW SUPREME COURT TERM IN OCTOBER JUSTICE BYRON WHITE ANNOUNCED IN MARCH THAT HE WOULD RETIRE AT THE END OF THE CURRENT TERM BY MAKING HIS ANNOUNCEMENT IN ADVANCE HE HOPED THERE WOULD BE TIME FOR HIS REPLACEMENT TO BE CONFIRMED AND PREPARED BY THE BEGINNING OF THE COURT'S TERM PRESIDENT CLINTON'S THREEMONTH SEARCH FOR A NOMINEE APPEARED TO UNDERMINE JUSTICE WHITE'S PLAN BUT IN WHAT SEEMS TO BE A SIGN OF BIPARTISAN COOPERATION DEMOCRATS AND REPUBLICANS ON THE JUDICIARY PANEL AGREED TO SHORTEN THEIR OWN INVESTIGATION OF JUDGE GINSBURG TO ALLOW FOR THE PREAUGUST HEARINGS 9306210056 930621 WHAT'S NEWS BUSINESS AND FINANCE TAMBRANDS'S BOARD IS QUIETLY EXPLORING SELLING THE COMPANY WHICH MAKES TAMPAX TAMPONS PEOPLE FAMILIAR WITH THE SITUATION SAID AMONG THE COMPANIES SAID TO BE INTERESTED IN ACQUIRING THE COMPANY WHICH HAS A MARKET VALUE OF ABOUT 16 BILLION IS JOHNSON & JOHNSON WHICH ANALYSTS SAY HAS SOUGHT ACQUISITIONS THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION IS INVESTIGATING WHETHER SOME LARGE GOVERNMENTBOND DEALERS COLLUDED WITH AN INDUSTRY TRADE ASSOCIATION TO MAKE IT HARDER FOR SMALLER DEALERS TO TRADE US TREASURY NOTES COMPANIES THAT MAKE INVESTMENTS TO HEDGE AGAINST A DECLINE IN THE VALUE OF THEIR HOLDINGS GOT A BOOST FROM A TAX COURT DECISION TO ALLOW FANNIE MAE TO DEDUCT CERTAIN HEDGING LOSSES THE RULING CLEARS UP THE UNCERTAINTY IN MANY HEDGE DEALS AND WAS CHEERED BY AGRICULTURAL AND SECURITIES FIRMS THE SENATE COULD BEGIN DEBATING ITS VERSION OF CLINTON'S DEFICITCUTTING PLAN ON WEDNESDAY AND COULD FINISH BY THE WEEKEND BUT THE BILL FACES POSSIBLE CHANGES IN A HOUSESENATE PANEL WHICH COULD BEGIN TALKS NEXT MONTH LITTON INDUSTRIES PLANS TO SPIN OFF ITS COMMERCIAL BUSINESS INCLUDING ITS OILFIELD SERVICES AND INDUSTRIAL AUTOMATION OPERATIONS AND KEEP ITS DEFENSE BUSINESS IN A NOVEL RESPONSE TO THE SHRINKING US MILITARY BUDGET NEWS OF THE SPINOFF SENT LITTON'S STOCK SOARING 8125 OR 14 TO 65125 APPLE COMPUTER'S MICHAEL SPINDLER WILL SUCCEED JOHN SCULLEY AS CHIEF EXECUTIVE SCULLEY WILL REMAIN CHAIRMAN BUT DEVOTE MOST OF HIS TIME TO BUILDING ALLIANCES WITH OTHER FIRMS PRUDENTIAL SECURITIES WILL PROBABLY PAY MORE THAN 200 MILLION IN A SETTLEMENT WITH REGULATORS INVESTIGATING WHETHER THE BROKERAGE FIRM IMPROPERLY SOLD LIMITED PARTNERSHIPS PEOPLE FAMILIAR WITH THE MATTER SAID MERCK RAISED PRICES OF 23 OF ITS PRESCRIPTION DRUGS 42 AMID INTENSE PUBLIC SCRUTINY OVER POSSIBLE PRICE INFLATION IN PRESCRIPTION DRUGS GM PLANS TO EXPAND PRODUCTION AT TWO PLANTS REEMPLOYING AS MANY AS 2000 LAIDOFF UNION WORKERS THE PLANS COME LESS THAN A WEEK BEFORE THE START OF GM'S NATIONAL CONTRACT TALKS MANY MANUFACTURERS ARE GRAPPLING WITH FLAT AND DECLINING PRICES UNDERSCORING THE LATEST REPORTS INDICATING INFLATION IS UNDER CONTROL MORE THAN A DOZEN STATES MAY HAVE TO PAY TAX REFUNDS TOTALING HUNDREDS OF MILLIONS OF DOLLARS TO FEDERAL RETIREES AS A RESULT OF A SUPREME COURT RULING TIME WARNER WILL PAY AN UNUSUALLY GENEROUS 30 MILLION TO OUTSIDE ADVISER ODED ABOODI FOR HIS ROLE IN U S WEST'S 25 BILLION INVESTMENT PEOPLE FAMILIAR WITH THE DEAL SAID SEARS SAID IT WILL SPIN OFF TO SHAREHOLDERS ITS REMAINING 80 STAKE IN SECURITIES FIRM DEAN WITTER ON JUNE 30 COMPLETING A KEY PART OF THE RETAILER'S FINANCIAL SERVICES DIVESTITURE PLAN NORTHERN TELECOM SIGNED A SWEEPING ACCORD WITH CHINA ESCALATING THE RACE AMONG TELECOMMUNICATIONS EQUIPMENT SUPPLIERS FOR DOMINANCE IN THE WORLD'S LARGEST MARKET NORTHERN TELECOM SAID IT WILL ASK CANADA TO HELP FINANCE THE EQUIPMENT PURCHASES BONDS LEHMAN BROTHERS TREASURY INDEX 518882 UP 367 COMMODITIES OIL 1867 A BARREL OFF THREE CENTS DOW JONES FUTURES INDEX 12085 OFF 015 SPOT INDEX 12104 UP 087 DOLLAR 10975 YEN UP 245 16810 MARKS UP 00220 9306210055 930621 MARKETING & MEDIA UNIVERSAL'S JURASSIC PARK' DOMINATES BOX OFFICE CRUSHING LAST ACTION HERO' BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD THE DINOSAURS OF UNIVERSAL'S JURASSIC PARK CONTINUED ON A TEAR AT THE BOX OFFICE SETTING RECORDS LEFT AND RIGHT AND CRUSHING COLUMBIA'S LAST ACTION HERO THE MOVIE MANY THOUGHT WOULD BE ITS ONLY MAJOR COMPETITION THIS SUMMER IN ITS SECOND WEEKEND JURASSIC PARK GROSSED BETWEEN 36 MILLION AND 38 MILLION FOR A TOTAL TAKE TO DATE OF BETWEEN 118 MILLION AND 120 MILLION ON SATURDAY IT BECAME THE FASTESTGROSSING MOVIE TO HIT 100 MILLION JUST NINE DAYS AFTER OPENING BATMAN IN 1989 HIT 100 MILLION AFTER 10 DAYS BUT LAST ACTION HERO THE TROUBLED ARNOLD SCHWARZENEGGER MOVIE GROSSED A DISAPPOINTING 152 MILLION IN ITS OPENING WEEKEND FAR LOWER THAN THE 20 MILLION TAKE THAT COLUMBIA EXECUTIVES HAD PREDICTED PUBLICLY LAST WEEK COLUMBIA A UNIT OF SONY CORP SAID THE TAKE INCLUDED 11 MILLION IN TICKET SALES FROM LATENIGHT PREVIEWS ON THURSDAY THE BATTLE BETWEEN THE FILMS HAS BEEN MONITORED CLOSELY BECAUSE IT REPRESENTED A FACEOFF BETWEEN THE FIERCELY COMPETITIVE JAPANESE CORPORATIONS THAT OWN THE TWO AMERICAN STUDIOS EXECUTIVES IN THE MOVIE BUSINESS SAID THE UNIVERSAL VICTORY AMOUNTED TO AWARDING BRAGGING RIGHTS TO ITS PARENT COMPANY MATSUSHITA ELECTRIC INDUSTRIAL CO JURASSIC PARK IS PERFORMING UNLIKE ANY OTHER MOVIE AND WILL ALMOST CERTAINLY GO ON TO BECOME ONE OF THE BIGGEST HITS OF ALL TIME THE FILM SET A RECORD FOR THE HIGHEST SEVENDAY BOXOFFICE TOTAL 817 MILLION BATMAN TOOK IN 713 MILLION IN ITS FIRST WEEK THE TAKE THIS PAST WEEKEND ALSO REPRESENTED THE LARGEST BOXOFFICE GROSS OF ANY MOVIE PLAYING IN ITS SECOND WEEKEND ITS WEEKEND GROSS WAS ONLY 2023 LOWER THAN IN ITS INITIAL OUTING THE MOVIE IS SHOWING AT 2437 THEATERS DESPITE THEIR PREDICTIONS LAST WEEK COLUMBIA EXECUTIVES REFUSED TO DEPICT THE OPENING OF LAST ACTION HERO AS LESS THAN SATISFACTORY WE WERE BOMBARDED IN AN UNUSUAL WAY BY THE PRESS AND IT TOOK US THIS WEEKEND TO CONFIRM WHAT WE ALWAYS KNEW WE GOT A BIG MOVIE AND IT'S TURNING OUT TO BE BIG SAID SID GANIS PRESIDENT OF MARKETING AND DISTRIBUTION THE MOVIE PLAYED AT 2306 THEATERS MR GANIS CITED MANY EXAMPLES OF MOVIES THAT OPENED EVEN LESS SPECTACULARLY THAN LAST ACTION HERO AND WENT ON TO ACHIEVE GROSSES OF MORE THAN 100 MILLION BUT INDUSTRY EXECUTIVES SAID THAT'S NOT LIKELY TO BE IN THE CARDS HERE THE MOVIE OPENED TO MANY NEGATIVE CRITICAL REVIEWS AND THE WORDOFMOUTH FROM MOVIEGOERS SO FAR HASN'T BEEN GOOD COLUMBIA SAYS ITS OWN EXIT POLLS OF MOVIEGOERS INDICATE THEY REALLY LIKE THE FILM THE PROBLEM IS A THORNY ONE FOR COLUMBIA WHICH HAS SUNK AN ENORMOUS AMOUNT OF MONEY INTO THE PROJECT PRODUCTION COSTS ON THE FILM ALONE ARE ESTIMATED AT MORE THAN 70 MILLION WITH 20 MILLION MORE ON THE LINE IN MARKETING EXPENSES IF THE MOVIE AS EXPECTED TAKES A BIG DROP NEXT WEEKEND AT THE BOX OFFICE IT WILL BE HARD FOR IT TO REACH A FINAL DOMESTIC GROSS OF MORE THAN 50 MILLION OR 60 MILLION AND MAY ULTIMATELY RESULT IN THE STUDIO LOSING MONEY ON THE FILM SONY HOWEVER HAS OTHER MOVIES ON THE RUNWAY READY FOR BATTLE ITS TRISTAR UNIT TOOK THE NO 3 SPOT AT THE BOX OFFICE OVER THE WEEKEND WITH ITS CLIFFHANGER MOVIE GROSSING ABOUT 55 MILLION ON SATURDAY TRISTAR HAD VERY SUCCESSFUL SNEAK PREVIEWS OF SLEEPLESS IN SEATTLE A ROMANTIC COMEDY OPENING FRIDAY AND COLUMBIA IS READYING A CLINT EASTWOOD MOVIE IN THE LINE OF FIRE OPENING JULY 9 9306210054 930621 BUSINESS BRIEF TRITON ENERGY CORP CANADIAN INVESTORS TO BUY COMPANY'S CALGARY INTEREST TRITON ENERGY CORP DALLAS WITHDRAWING FROM CANADIAN OIL AND GAS PRODUCTION SAID IT IS SELLING ITS STAKE IN TRITON CANADA RESOURCES LTD TO CANADIAN INVESTORS FOR 63 MILLION TRITON FOCUSING ITS OIL AND GAS ACTIVITES IN COLOMBIA THAILAND AND ARGENTINA IS SELLING ITS 76 STAKE OR 305 MILLION SHARES IN CALGARY'S TRITON CANADA THE SHARES WILL BE SOLD TO AN UNDERWRITING SYNDICATE LED BY RBC DOMINION SECURITIES INC AND BURNS FRY LTD FOR 265 CANADIAN DOLLARS A SHARE THE SALE WILL RESULT IN A US34 MILLION GAIN OR US1 A SHARE TO BE RECORDED IN TRITON ENERGY'S FIRST OR SECOND FISCAL QUARTERS IN THE FIRST QUARTER ENDED AUG 31 IT HAD NET INCOME OF US866000 OR THREE CENTS A SHARE ON REVENUE OF US762 MILLION TRITON CANADA AN OIL AND GASEXPLORATION AND PRODUCTION COMPANY HAD A LOSS OF C77 MILLION ON REVENUE OF C29 MILLION FOR THE FISCAL YEAR ENDED MAY 31 TRITON'S DEBTTOEQUITY RATIO WAS ABOUT 62 AS OF FEB 28 9306210053 930621 BUSINESS BRIEF DIGITAL EQUIPMENT CORP GENERAL ELECTRIC UNIT TO BUY COMPUTERLEASING BUSINESS DIGITAL EQUIPMENT CORP AND GE CAPITAL CORP A UNIT OF GENERAL ELECTRIC CO SAID THEY AGREED FOR GE CAPITAL TO ACQUIRE DIGITAL'S US COMPUTERLEASING BUSINESS AND BE DIGITAL'S DELIVERY PARTNER FOR THE SUPPORT OF FINANCIAL SERVICES TERMS WEREN'T DISCLOSED AND A SPOKESMAN FOR GE CAPITAL IN STAMFORD CONN SAID THE AMOUNT OF LEASING ASSETS TO BE ACQUIRED WASN'T IMMEDIATELY AVAILABLE THE COMPANIES SAID EMPLOYEES OF DIGITAL'S US LEASING BUSINESS WILL BECOME GE CAPITAL EMPLOYEES THE GE CAPITAL SPOKESMAN SAID NO STAFF REDUCTIONS WERE CONTEMPLATED THE TRANSITION OF THE US LEASING BUSINESS FROM DIGITAL MAYNARD MASS TO GE CAPITAL WILL BE COMPLETED WITHIN SEVERAL WEEKS THE COMPANIES SAID DIGITAL'S VICE PRESIDENT OF US SALES AND SERVICES RUSSELL A GULLOTTI SAID THE COMPANY DECIDED TO SELL THE BUSINESS TO FOCUS ON COMPUTER MANUFACTURING 9306210052 930621 THE OUTLOOK TRADE POLICY STUMBLES ON RICH VS POOR STATES BY TIM CARRINGTON WASHINGTON RICH COUNTRIES WITH POOR NEIGHBORS ARE SUFFERING A BOUT OF ECONOMIC ANXIETY FEARFUL THAT MEXICO MIGHT SAP THE US JOB MARKET CONGRESS MAY THROTTLE THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH WOULD PHASE IN BARRIERFREE TRADE BETWEEN THE US AND ITS NEIGHBORS TO THE SOUTH AND NORTH SIMILARLY THE EUROPEAN COMMUNITY HAS BEEN SLOW TO OPEN ITS MARKETS TO THE STRUGGLING ECONOMIES OF THE FORMER EAST BLOC IN ASIA JAPAN INVESTS HEAVILY IN THE NEARBY TIGER ECONOMIES BUT SHIELDS DOMESTIC PRODUCERS FROM THE LOWCOST GOODS THAT THE TIGERS EXPORT WORKING OUT ECONOMIC ARRANGEMENTS WITH LESSDEVELOPED COUNTRIES IS THE FOREFRONT QUESTION OF TRADE POLICY SAYS GARY HUFBAUER ECONOMIST WITH THE INSTITUTE FOR INTERNATIONAL ECONOMICS THE DIFFICULTIES SAYS ECONOMIST HERBERT STEIN STEM FROM A COMMON ERROR AND PREJUDICE THAT YOU LOSE JOBS IF YOU HAVE TO COMPETE WITH ANYBODY ONE PROBLEM IS THAT THE LESS DEVELOPED STATES ARE EDGING INTO THE WORLD ECONOMY IN THE WORST OF TIMES THE US IS EXPERIENCING A TEPID RECOVERY WITH MAJOR INDUSTRIES STILL SHRINKING AND RESTRUCTURING WESTERN EUROPE IS SUNK IN A GENERAL RECESSION WITH UNEMPLOYMENT PUSHING TOWARD 12 JAPAN'S BEEN HIT BY THE WORST SLUMP IN YEARS ITS FINANCIAL BUBBLE LARGELY DEFLATED VLADIMIR DLOUHY THE CZECH REPUBLIC'S MINISTER OF INDUSTRY AND TRADE COMPLAINS THAT THE EC'S 1993 QUOTA FOR STEEL IMPORTS IS LOWER EVEN THAN THE PREVIOUS YEAR'S LEVEL BUT CITING ECONOMIC CONDITIONS HE ADDS I DON'T EXPECT MUCH IMPROVEMENT IN THE CURRENT ENVIRONMENT MANY SEE THEIR LESSDEVELOPED NEIGHBORS NOT SO MUCH AS A NEW MARKET TO SELL TO BUT A THREAT TO A SHAKY JOB BASE AT HOME WE DON'T GIVE A FIG ABOUT THE MEXICAN MARKET SAYS JOCK NASH WASHINGTON COUNSEL FOR MILLIKEN & CO A PRIVATELY OWNED TEXTILE CONCERN THAT PROBABLY WOULD SUFFER IF NAFTA GOES THROUGH HE ARGUES THAT COMPANIES WOULD SHIFT PRODUCTION TO MEXICO WHERE WAGES ARE ABOUT ONETENTH OF US LEVELS THEN SELL THEIR PRODUCTS BACK INTO THE US MARKET IF AMERICAN MANUFACTURERS MOVE OFFSHORE TO STAY COMPETITIVE IN OUR OWN MARKETS WE'RE THROUGH HE WARNS JAPAN WHOSE APPROACH TO LESSDEVELOPED NEIGHBORS APPEALS TO SOME WESTERNERS INVESTS IN THE FASTGROWING EAST ASIAN ECONOMIES LIKE THAILAND AND INDONESIA WITHOUT ALLOWING THE RESULTING OUTPUT TO THREATEN DOMESTIC PRODUCERS JAPANESE PLANTS IN THAILAND FOR EXAMPLE DON'T SELL BACK TO JAPAN BUT TO THE US CRITICS HOWEVER ARE USING IMPORTS AND IMMIGRANTS AS SCAPEGOATS FOR BROADER PROBLEMS AFFLICTING LOWSKILLED WORKERS SOME ECONOMISTS ARGUE THAT US INDUSTRIAL WORKERS ARE FAR MORE THREATENED BY ROBOTS AT HOME THAN PEASANTS ABROAD I DON'T THINK WHAT HAPPENED TO UNSKILLED LABOR IN THE 1980S CAN BE ATTRIBUTED TO INTERNATIONAL TRADE WITH UNDEVELOPED COUNTRIES SAYS JAGDISH BHAGWATI ECONOMIST AT COLUMBIA UNIVERSITY A GREAT DEAL OF WORK SHOWS THAT 95 OF THE STAGNATION IN WAGES IN THE 1980S IS ATTRIBUTABLE TO TECHNOLOGY AS TECHNOLOGICAL ADVANCES INCREASE PRODUCTIVITY AND LESSEN THE DEMAND FOR LABOR WAGE LEVELS FOR UNSKILLED US WORKERS LANGUISH BUT OUTSIDE CERTAIN LABORINTENSIVE SECTORS WHERE DEVELOPING COUNTRIES HAVE AN ADVANTAGE THE US HAS ATTRACTED FOREIGN INVESTORS SOME OF WHOM CHOOSE THE US AS A BASE FOR THE LARGER NAFTA MARKET MR BHAGWATI'S STUDIES SHOW THAT DURING THE 1980S MORE JOBS WERE CREATED BY FOREIGN INVESTORS IN THE US THAN BY US COMPANIES MOVING PLANTS TO LOWWAGE COUNTRIES LIKE MEXICO ONE REASON IS THAT PRODUCTIVITY IN THE HINTERLANDS OF MANY COUNTRIES STILL LAGS ACCORDING TO A SENIOR US TRADE OFFICIAL IF MEXICO GREW AS FAST AS JAPAN DID IN THE 1960S IT WOULD TAKE 30 YEARS TO REACH THE PRODUCTIVITY LEVELS OF ITALY WHICH ARE WELL BELOW THOSE IN THE US SIMILARLY EAST EUROPEAN PRODUCTIVITY IS YEARS BEHIND THAT OF ITS WESTERN NEIGHBORS THOSE FIGHTING TRADEOPENING MOVES JUST LOOK AT THE NARROW FIRSTORDER JOB LOSSES SAYS STEPHEN ROACH A MORGAN STANLEY & CO ECONOMIST WHAT THEY DON'T POINT OUT IS THAT AS INCOME LEVELS RISE OUR DEVELOPING NEIGHBORS LOOK BEYOND THEIR BORDERS FOR HIGHVALUE PRODUCTS INDEED THE RUNNING US TRADE SURPLUS WITH MEXICO WHICH CAME TO 54 BILLION LAST YEAR INDICATES THAT SO FAR MEXICO'S ECONOMIC DEVELOPMENT IS MAINLY CREATING DEMAND FOR US GOODS MOREOVER US WAGES IN EXPORTRELATED JOBS RUN 17 HIGHER THAN THE AVERAGE MANUFACTURING WAGE SUGGESTING THAT INTERNATIONAL TRADE IS SUPPORTING HIGHERVALUE JOBS AT HOME HOWEVER BOTH IN THE US AND EUROPE THE CRITICS OF MORE OPEN TRADE ARE DROWNING OUT THE COMPANIES AND WORKERS THAT STAND TO GAIN IN EUROPE THE GAINERS FROM OPEN TRADE ARE A LOT OF PEOPLE WHO MAKE SMALL GAINS AND THE LOSERS LIKE AGRICULTURE AND STEEL MAKE BIG LOSSES SAYS JIM ROLLO ECONOMIST WITH THE ROYAL INSTITUTE FOR INTERNATIONAL AFFAIRS IN LONDON THE FEARMONGERS CIRCLING NAFTA AND THEIR COUNTERPARTS OVERSEAS SHOULD FOCUS ON THE REAL PROBLEM NAMELY WORKERS WITH LOW SKILLS IN A WORLD ECONOMY THAT DEMANDS HIGHER SKILLS AND EVERIMPROVING PRODUCTIVITY IF THE US DUMPS NAFTA AND CLOSES ITS BORDERS TO FOREIGN GOODS TOMORROW THAT SEGMENT OF THE WORK FORCE STILL FACES A DISMAL FUTURE AT LEAST WITH EXPANDING TRADE SAYS MR STEIN THERE SHOULD BE SOME WAY TO USE THE NET GAINS TO ASSIST THOSE WHO ARE INJURED 9306210051 930621 VOLKSWAGEN'S LOPEZ DENIES FEAR ON VISIT TO GM'S BASE FLINT MICH JOSE IGNACIO LOPEZ DE ARRIORTUA VOLKSWAGEN AG'S CONTROVERSIAL PRODUCTION CHIEF TOOK TIME OUT FRIDAY FROM BATTLING HIS OLD EMPLOYER GENERAL MOTORS CORP TO JOURNEY TO GM'S BIRTHPLACE AND DECLARE HE HAS NO FEAR OF GM IN BETWEEN ENCOUNTERS WITH WELLWISHERS AT A RECEPTION FOLLOWING HIS DAUGHTER'S GRADUATION FROM THE GENERAL MOTORS INSTITUTE MR LOPEZ CALLED GM'S CHARGES THAT HE STOLE CONFIDENTIAL DOCUMENTS A PITY AND MR LOPEZ BRUSHED ASIDE GM'S CONTENTION THAT IT OWNS THE IDEAS CENTRAL TO A LOWCOST CARMAKING FACILITY MR LOPEZ WANTS BUILT NEAR HIS BIRTHPLACE IN SPAIN'S BASQUE COUNTRY LAST MONDAY MR LOPEZ ANNOUNCED VW WILL BUILD A FACILITY NEAR HIS HOMETOWN ALTHOUGH VW OFFICIALS HAVE BEEN VAGUE ABOUT THE EXACT NATURE OF THE PROJECT MR LOPEZ SAID HE LEFT GM LAST MARCH AFTER IT BECAME CLEAR THAT GM WOULDN'T BACK HIS BASQUE DREAM PLANT WHICH WOULD HAVE SUPPLIERS BOLTING THEIR OWN COMPONENTS ON CARS AS PART OF A LEAN ASSEMBLY PROCESS I TOOK A DECISION TO FURTHER MY COUNTRY MR LOPEZ SAID 9306210050 930621 REVIEW & OUTLOOK EDITORIAL ASIDES NEW WORLD WATCHDOG WHEN THE COLD WAR ENDED SO DID THE NEED FOR MANY OF THE THINKTANK SHOPS THAT MONITORED THE VICTIMS OF SOVIET COMMUNISM ONE OF THE BEST AMONG THEM THE COMMITTEE FOR THE FREE WORLD EVEN TOOK THE UNHEARD OF STEP FOR A NONPROFIT IT CLOSED SHOP WHAT KIND OF MONITOR GROUPS THOUGH DO WE NEED FOR THE CONFUSING NEW WORLD ORDER WELL GIVEN THE POLITICIZATION AND ANTISEMITISM AT THE UNITED NATIONS ONE MIGHT WANT SOMEONE TO WATCH THAT WAYWARD BODY LAST YEAR ALONE 30 UN RESOLUTIONS WERE DIRECTED AGAINST ISRAEL HAPPILY UN WATCH HAS JUST MATERIALIZED TO TAKE ON THE JOB FROM A GENEVA BASE MORRIS ABRAM AN OLD CIVIL RIGHTS HAND AND AN EXPERT AT SEEING THROUGH UN MACHINATIONS WILL SERVE AS PRESIDENT WE CAN'T THINK OF A TIMELIER BIT OF NEWS 9306210049 930621 TRACKING THE ECONOMY BY ALAN YONAN JR THE EFFECTS OF A STRENGTHENING JOB MARKET ARE BEGINNING TO RIPPLE THROUGH THE ECONOMY ANALYSTS EXPECTED THAT A COMMERCE DEPARTMENT REPORT THIS WEEK WILL SHOW A HEALTHY GAIN IN MAY PERSONAL INCOME BASED CHIEFLY ON STRONG EMPLOYMENT DATA REPORTED FOR THE MONTH AN INCREASE OF 209000 PAYROLL JOBS IN MAY COMBINED WITH A SHARP JUMP IN HOURLY EARNINGS SHOULD HELP BOOST PERSONAL INCOME 06 IN MAY ABOUT DOUBLE THE AVERAGE MONTHLY INCREASE SO FAR THIS YEAR SAID DAVID COHEN AN ECONOMIST AT MMS INTERNATIONAL THE SOLID INCREASE IS CONSISTENT WITH THE STRENGTH WE SAW IN THE MAY EMPLOYMENT REPORT HE SAID HE EXPECTS A 11 INCREASE IN MAY WAGES AND SALARIES THE SINGLELARGEST CATEGORY IN THE INCOME REPORT THE COMMERCE DEPARTMENT ALSO WILL REPORT ON PERSONAL SPENDING WHICH MR COHEN SAID PROBABLY INCREASED 03 IN MAY AFTER A 1 SURGE IN APRIL THE EXPECTED MODERATION IN MAY IS SUPPORTED BY A REPORT THAT SHOWED LACKLUSTER RETAIL SALES FOR THE MONTH WAGE AND SALARY GROWTH WAS WEAK IN APRIL MEANING CONSUMERS HAD LESS IN THEIR POCKETS TO SPEND IN MAY HOWEVER THE PREDICTED INCREASE IN MAY INCOME GROWTH SHOULD HELP SPENDING PICK UP MOMENTUM IN THE MONTHS TO COME MR COHEN SAID 9306210048 930621 GM PLANS OUTPUT EXPANSIONS AND 2000 UAW MEMBERS COULD BE REEMPLOYED BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT LESS THAN A WEEK BEFORE THE START OF NATIONAL CONTRACT TALKS GENERAL MOTORS CORP IS PLANNING TWO BIG PRODUCTION EXPANSIONS THAT COULD REEMPLOY ABOUT 2000 LAIDOFF UNITED AUTO WORKERS MEMBERS THE TWO MOVES REPRESENT THE LATEST OF SEVERAL OLIVE BRANCHES THAT GM PRESIDENT AND CHIEF EXECUTIVE OFFICER JOHN F SMITH JR HAS EXTENDED TO THE UAW IN RECENT WEEKS MR SMITH HAS MADE IT CLEAR GM WILL SHRINK ITS WORK FORCE DURING THE NEXT FEW YEARS TO REFLECT LOWER MARKET SHARE AND LEANER PRODUCTION METHODS BUT HE WANTS TO SHOW THE UNION THAT THE PROCESS WILL BE HUMANE AND COULD EVEN SLOW WHERE UAW LOCALS SHOW FLEXIBILITY THE UAW AND GM WILL FORMALLY KICK OFF NEGOTIATIONS FOR THEIR NEXT CONTRACT WEDNESDAY THE CURRENT THREEYEAR CONTRACT BETWEEN GM AND THE UAW EXPIRES SEPT 14 TODAY MR SMITH AND THE UAW'S TOP GM NEGOTIATOR STEPHEN P YOKICH ARE SCHEDULED TO APPEAR AT GM'S BIG LANSING MICH ASSEMBLY FACILITY WITH MICHIGAN GOV JOHN ENGLER IT'S EXPECTED THE TRIO WILL CELEBRATE GM'S DECISION TO ADD PRODUCTION OF CHEVROLET CAVALIER COMPACT CARS TO THE PLANT AND REEMPLOY MANY OF ITS 1200 UAW EMPLOYEES IDLED BECAUSE OF SLOW SALES AND EFFICIENCY GAINS SINCE OCTOBER MANAGERS OF THE LANSING COMPLEX AND LEADERS OF ITS TWO UAW LOCALS HAVE CONDUCTED A FEASIBILITY STUDY ON A PLAN TO BUILD 70000 TO 100000 MORE CARS A YEAR IN LANSING IN ADDITION TO THREE OTHER COMPACT CARS ALREADY PRODUCED THERE INCLUDING THE PONTIAC GRAND AM GM OFFICIALS SAID ONLY THAT A DECISION IS BEING FINALIZED IN A SEPARATE ANNOUNCEMENT GM SAID FRIDAY IT WILL ADD A SECOND SHIFT AT ITS FAIRFAX KAN ASSEMBLY PLANT IN JANUARY AND RECALL 900 LAIDOFF WORKERS AS PART OF A PLAN TO PREPARE THE PLANT TO PRODUCE A SECOND MIDSIZE MODEL THE PLANT HAS ABOUT 950 WORKERS ON LAYOFF AND RECALLING THE SECOND SHIFT COUPLED WITH RETIREMENTS SHOULD MEAN FULL EMPLOYMENT SAID LD EDWARDS PRESIDENT OF THE UAW LOCAL THAT REPRESENTS FAIRFAX GM OFFICIALS SAID THEY EXPECT SALES OF THE PONTIAC GRAND PRIX THE ONLY CAR BUILT AT FAIRFAX TO IMPROVE WHEN IT GETS A DRIVER'S AND PASSENGER'S SIDE AIR BAG AS STANDARD FEATURES THIS FALL THROUGH JUNE 10 PONTIAC HAD SOLD 49407 OF THE CARS UP JUST 06 FROM A YEAR AGO BUT GM ALSO IS RECALLING THE SECOND SHIFT SO THAT IT CAN STOCKPILE CARS TO PREPARE FOR A 16WEEK SHUTDOWN OF THE FAIRFAX PLANT NEXT SUMMER GM WILL USE THE SHUTDOWN TO RETOOL THE PLANT'S BODY SHOP SO IT CAN BUILD BOTH THE GRAND PRIX AND THE OLDSMOBILE CUTLASS SUPREME WHICH IS NOW BUILT IN DORAVILLE GA THE DORAVILLE PLANT WHICH RUNS ON A SINGLE SHIFT IS SCHEDULED TO CONVERT TO ASSEMBLY OF THE NEXT GENERATION OF GM'S FRONTWHEELDRIVE MINIVAN THESE MOVES DRAMATICALLY EXPAND THE CAMPAIGN MR SMITH HAS WAGED SINCE TAKING OVER AS CHIEF EXECUTIVE LAST NOVEMBER TO WIN MR YOKICH'S TRUST AMONG THE STEPS GM HAS TAKEN TO THAT END GM TOLD WORKERS AT ITS BALTIMORE ASSEMBLY PLANT THAT IT EXPECTS TO KEEP THE PLANT OPEN AT LEAST UNTIL THE YEAR 2000 IF THE PLANT CONTINUES TO MAKE PRODUCTIVITY AND QUALITY IMPROVEMENTS GM ANNOUNCED IT WILL KEEP ONE LINE OF ITS FLINT MICH V8 ENGINE PLANT OPEN UNTIL 1998 THE PLANT ORIGINALLY HAD BEEN SCHEDULED TO CLOSE IN 1995 AND GOT AN EARLIER EXTENSION TO 1997 GM AGREED TO KEEP 800 JOBS AT A LIVONIA MICH SPRING PLANT SCHEDULED PROVIDED THE WORKERS TAKE STEPS TO BECOME MORE EFFICIENT BUT ANOTHER 750 JOBS AT THE PLANT WILL BE ELIMINATED UAW LEADERS ARE RESPONDING POSITIVELY TO MR SMITH'S ACTIONS IN A MARKED DEPARTURE FROM PREVIOUS YEARS UAW LEADERS HAVE CUT THE FLOW OF FIVEDAY LETTERS THAT ARE REQUIRED BEFORE A LOCAL UNION CAN STAGE A STRIKE WE'RE SHUTTING OFF THE FLOW OF FIVEDAY LETTERS FOR A WHILE AND SEE IF GM WILL RESPOND SAID ONE UNION OFFICIAL BUT UAW OFFICIALS REMAIN QUICK TO THREATEN THE STICK SHOULD THE CARROT FAIL SAID ONE UNION OFFICIAL GM DID THAT LIVONIA DEAL SO WE WOULDN'T SHUT THE PLANT WHICH IS NOW THE SOLE SOURCE OF SPRINGS FOR MANY GM PRODUCTS 9306210047 930621 CORRECTIONS & AMPLIFICATIONS DEMOCRATIC MEMBERS OF THE SENATE FINANCE COMMITTEE AGREED LAST WEEK TO INCREASE THE CURRENT 10000 ANNUAL TAX WRITEOFF SMALL BUSINESSES CAN TAKE FOR NEW EQUIPMENT PURCHASES TO ONLY 15000 INSTEAD OF THE 25000 APPROVED BY THE HOUSE AN ARTICLE IN FRIDAY'S ENTERPRISE SECTION INCORRECTLY SAID THE SENATORS HAD REJECTED ANY INCREASE ALLIEDSIGNAL INC AGREED TO PAY 50 MILLION FOR CLEANUP PROJECTS 10 MILLION TO FUND STUDIES AND A 1 MILLION FINE TO SETTLE A DISPUTE RELATED TO 18 CHROMIUM DUMPS IN HUDSON COUNTY NJ AN ARTICLE FRIDAY SAID THE COMPANY AGREED TO PAY 61 MILLION IN PENALTIES AND FEES TO CLEAN UP THE 18 SITES BUT DIDN'T SPECIFY THE AMOUNT OF PENALTIES FREDERICK E HENNIG IS PRESIDENT AND CHIEF OPERATING OFFICER OF WOOLWORTH CORP HIS NAME WAS MISSPELLED IN AN ARTICLE FRIDAY ABOUT THE COMPANY'S PLANS TO EXPAND ITS WORLD FOOT LOCKER STORES JACK M GREENBERG A NEW DIRECTOR AT HARCOURT GENERAL INC IS VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF MCDONALD'S CORP IN FRIDAY'S WHO'S NEWS COLUMN IT WAS INCORRECTLY STATED THAT MR GREENBERG HOLDS THOSE POSTS AT HARCOURT HARCOURT'S CHIEF FINANCIAL OFFICER IS JOHN R COOK 9306210045 930621 SOUTHWESTERN BELL UNIT'S BONDS SAN ANTONIO SOUTHWESTERN BELL TELEPHONE CO A UNIT OF SOUTHWESTERN BELL CORP SAID IT CALLED FOR REDEMPTION 450 MILLION OF 8625 BONDS DUE APRIL 15 2020 SOUTHWESTERN BELL SAID THE TRANSACTION WOULD RESULT IN A ONETIME EXTRAORDINARY CHARGE OF ABOUT 43 MILLION OR SEVEN CENTS A SHARE IN THE SECOND QUARTER FOR THE YEAREARLIER QUARTER SOUTHWESTERN BELL REPORTED NET INCOME OF 3045 MILLION OR 101 A SHARE THE BONDS ISSUED IN 1986 ARE REDEEMABLE JULY 19 AT 10409 PLUS ACCRUED INTEREST SOUTHWESTERN BELL PLANS TO REPLACE THE DEBT WITH LOWER COST DEBT INSTRUMENTS TAKING ADVANTAGE OF CURRENT LOWER INTEREST RATES 9306210044 930621 BUSINESS BRIEFS BIOGEN INC PLANS TO BUILD A 35 MILLION OFFICE AND LABORATORY FACILITY IN CAMBRIDGE MASS CONSTRUCTION IS SCHEDULED TO BEGIN LATE THIS FALL SUBJECT TO APPROVAL BY THE CAMBRIDGE CITY COUNCIL THE FACILITY IS EXPECTED TO BE COMPLETED BY 1995 VALLEY NATIONAL BANCORP WAYNE NJ MERGED WITH PEOPLES BANCORP FAIRFIELD NJ VALLEY NATIONAL ISSUED 421500 SHARES VALUED AT 109 MILLION IN THE MERGER DEL WEBB CORP TOOK AN OPTION ON 5100 ACRES NEAR HILTON HEAD SC OWNED BY UNION CAMP CORP A WAYNE NJ PAPER AND FOREST PRODUCTS COMPANY AS A POTENTIAL SITE FOR A RETIREMENT COMMUNITY 9306210043 930621 BUSINESS BRIEF NOKIA OY FINNISH CONCERN POSTS PROFIT FOR FIRST 4 MONTHS OF 1993 NOKIA OY SAID IT SWUNG TO A PROFIT FROM A YEAREARLIER LOSS FOR THE FIRST FOUR MONTHS OF 1993 CITING IMPROVED SALES AND COSTCUTTING MEASURES THE FINNISH ELECTRONICS AND INDUSTRIAL GROUP POSTED PRETAX PROFIT OF 154 MILLION MARKKAA 276 MILLION A YEAR EARLIER IT HAD A PRETAX LOSS OF 280 MILLION MARKKAA SALES ROSE 46 TO 71 BILLION MARKKAA FROM 486 BILLION MARKKAA ADJUSTED FOR CHANGES IN GROUP STRUCTURE AND CURRENCY FLUCTUATIONS NOKIA'S SALES GREW BY 32 THE GROUP SAID SALES OF TELECOMMUNICATIONS UNITS SOARED 87 TO 125 BILLION MARKKAA WHILE SALES FOR MOBILE PHONE UNITS MORE THAN DOUBLED TO 184 BILLION MARKKAA IN THE GROUP'S BIGGEST UNIT NOKIA CONSUMER ELECTRONICS SALES JUMPED 51 TO 239 BILLION MARKKAA 9306210042 930621 BUSINESS BRIEF RAYTHEON CO UNIT BUYS ASSETS OF BUSINESS FROM HARBERT INTERNATIONAL RAYTHEON CO SAID ITS RAYTHEON ENGINEERS & CONSTRUCTORS INTERNATIONAL UNIT BOUGHT THE ASSETS OF HARBERT CONSTRUCTION CO BIRMINGHAM ALA TERMS WEREN'T DISCLOSED THE ACQUIRED PART OF HARBERT CONSTRUCTION A UNIT OF CLOSELY HELD HARBERT INTERNATIONAL INC HAS ANNUAL REVENUE OF ABOUT 100 MILLION RAYTHEON SAID THE UNIT'S BUSINESS INCLUDES CONSTRUCTION OF HIGHWAYS AIRPORTS MUNICIPAL FACILITIES AND OTHER INFRASTRUCTURE PROJECTS RAYTHEON ENGINEERS CURRENTLY HAS ANNUAL SALES OF MORE THAN 17 BILLION RAYTHEON SAID HARBERT WILL CONTINUE TO BE BASED IN BIRMINGHAM AS A PART OF A NEW RAYTHEON UNIT HARBERTYEARGIN INC ABOUT 100 HARBERT MANAGERS AND SUPERVISORS ARE EXPECTED TO JOIN THE UNIT AS WILL MOST OF HARBERT'S 500 CRAFT AND CONSTRUCTION WORKERS CURRENTLY ASSIGNED TO CONTINUING PROJECTS RAYTHEON ADDED RAYTHEON LEXINGTON MASS OPERATES AIRCRAFT ELECTRONICS CONSTRUCTION AND MAJOR APPLIANCES BUSINESSES 9306210041 930621 DESIGNER TEDDY BEARS AREN'T CHILD'S PLAY FOR BRITISH COLLECTORS ADULTS PAW THROUGH EXHIBITS ATTEND LECTURES ON POOH SOTHEBY'S GETS IN ON THE ACT BY KEN WELLS STAFF REPORTER OF THE WALL STREET JOURNAL STRATFORDONAVON ENGLAND ARTISTS EVERYWHERE MIGHT ENVY JO GREENO ON A RECENT DAY ADMIRERS STOOD IN LINE FOR TWO HOURS WAITING FOR AN EXHIBIT FEATURING HER WORK TO OPEN WHEN IT DID A MOB RUSHED IN SNAPPING UP EVERYTHING MRS GREENO HAD FOR SALE IT WAS PANDEMONIUM I WAS LUCKY TO GET ONE SAYS NOREEN ANSTEY FROM SURREY SHE ADMIRINGLY CLUTCHES THE GREENO SHE HAS BOUGHT SHE PRAISES ITS FORM ITS SUBLIME CONSTRUCTION ITS SENSE OF WHIMSY THE OBJECT OF HER ADORATION IS A TEDDY BEAR A 150 TEDDY BEAR AND THE 165TH IN MRS ANSTEY'S COLLECTION MRS GREENO DOESN'T JUST MAKE TEDDY BEARS IN THE PARLANCE OF THE BEAR PEOPLEDESIGNERS MANUFACTURERS AND ARDENT COLLECTORS SHE IS A BEAR ARTIST FROM A HANDFUL A FEW YEARS BACK SCORES OF BRITONS THESE DAYS CUT STITCH AND SHAPE MOHAIR AND STUFFING INTO ONEOFAKIND AND LIMITEDEDITION TEDDY BEARS THIS ISN'T CHILD'S PLAY AN ESTIMATED 10000 BRITISH ADULT TEDDY BEAR COLLECTORS PROWL EXHIBITS SUCH AS THIS ONE BUYING UP DESIGNER BRUINS FOR PRICES RANGING INTO THE HUNDREDS OF DOLLARS AT A SOTHEBY'S LONDON AUCTION THREE YEARS AGO ONE BRITISH COLLECTOR PAID AN ASTONISHING 85000 A WORLD RECORD FOR A 1920VINTAGE TEDDY BEAR ANOTHER BRIT HAS A COLLECTION OF 2000 BEARS WORTH HUNDREDS OF THOUSANDS OF DOLLARS HEAVENS YOU WOULDN'T GIVE BEARS LIKE THESE TO CHILDREN EXPLAINS GAYNOR GOWLET AN ESSEX COLLECTOR AND AMONG HUNDREDS BROWSING THIS EXHIBIT CALLED THE FESTIVAL OF ARTIST BEARS BESIDES THEIR EXTRAVAGANT PRICES ARTIST BEARS LIKE THE ONES MRS GREENO MAKES AREN'T THE SOFT AND CUDDLY DEPARTMENTSTORE VARIETY THEY TYPICALLY HAVE MOVABLE JOINTED LIMBS AND NECKS SUPPORTED BY INTERNAL SKELETONS MADE OF WIRE PINS EVEN METAL RODS WHILE THIS ALLOWS COLLECTORS TO DISPLAY THEIR BEARS IN VARIOUS INTERESTING POSES THEY JUST AREN'T SAFE FOR CHILDREN MRS GOWLET ADDS JUST WHY BRITISH ADULTS WITH THEIR STIFF UPPER LIPS HAVE GONE SOFT FOR TEDDY BEAR COLLECTING ISN'T ALTOGETHER CLEAR NATIONAL PRIDE ISN'T AT STAKE AFTER ALL THE FIRST TEDDY BEAR WAS AMERICAN TEDDY BEAR WAS THE NICKNAME GIVEN TO PRESIDENT THEODORE ROOSEVELT IN A 1907 NEWSPAPER CARTOON DEPICTING HIM SPARING THE LIFE OF A BEAR DURING A HUNT ABOUT THE SAME TIME TWO COMPANIES ONE AMERICAN ONE GERMAN BEGAN MAKING TOY STUFFED BEARS AND THE NAME TEDDY BEAR STUCK BEARS WERE STRICTLY KID'S STUFF BACK THEN EVEN FIVE YEARS AGO ADULTS WITH ROOMS PILED WITH TEDDY BEAR COLLECTIONS WERE CONSIDERED SOMEWHAT ECCENTRIC NOWADAYS COLLECTORS GET TOGETHER AT SPECIAL TEDDY BEAR WEEKENDS WHERE THEY SHOP FOR BEARS DISCUSS THE LATEST TRENDS IN TEDDY BEAR ART AND ATTEND SYMPOSIUMS ON BEAR FACTS AND HISTORY MRS GREENO ALSO LECTURES AT THESE EVENTS THE FORMER SCHOOL PRINCIPAL THINKS THE BRITISH HAVE BECOME SO BULLISH ON BEARS PARTLY BECAUSE MANY LIKABLE IMAGINARY BEARS NOTABLY WINNIE THE POOH AND PADDINGTON PERMEATE THE BRITISH PSYCHE THIS CHARM MELDED WITH COMMERCE SEEMS IRRESISTIBLE TO MANY THE BEAR IN ITSELF IS A LOVELY THING TO COLLECT EXPLAINS LEYLA MANIERA OF CHRISTIE'S THE BRITISH AUCTION HOUSE THAT NOW HOLDS FIVE TEDDY BEAR AUCTIONS A YEAR BEARS ARE NOW BEING TAKEN VERY SERIOUSLY AS A COLLECTOR'S ITEM FOR GREGORY GYLLENSHIP A LONDON BEAR ARTIST THE BRITISH PASSION FOR ANIMALS ALSO EXPLAINS THE CRAZE IN A WAY TEDDY BEARS SERVE AS SURROGATE PETS HE SAYS THEIR FACES DRAW THE SAME RESPONSE AS DO PUPPIES AND YOU DON'T HAVE TO FEED THEM TEDDY BEARS NOW FEED THE 37YEAROLD MR GYLLENSHIP HOWEVER HE RECENTLY GAVE UP HIS COMPANY CAR AND JOB AS AN ACCOUNTANT TO BECOME A FULLTIME BEAR ARTIST HE PRODUCES AN AVERAGE OF FOUR BEARS A WEEK CHARGING AS MUCH AS 600 FOR THE BEST ONES AS DO ART COLLECTORS BEAR BUFFS TEND TO LIONIZE CERTAIN BEAR MAKERS FOR NOW AT LEAST MR GYLLENSHIP MRS GREENO AND A HANDFUL OF OTHERS CREATE WHAT BEAR FOLK CALL HOT BEARS I CAN'T KEEP UP WITH THE DEMAND SAYS MR GYLLENSHIP INDEED THE 17 BEARS HE BROUGHT TO THIS SHOW SOLD OUT IN 10 MINUTES AS HE TALKS ADMIRERS GATHER AROUND HANGING ON HIS EVERY WORD HE IS ALSO BEING PURSUED BY A JOURNALIST FROM TEDDY BEAR MAGAZINE ONE OF TWO TEDDY BEAR PUBLICATIONS IN BRITAIN WHO WANTS TO EXPLORE THE INTRICACIES OF HIS TECHNIQUE MR GYLLENSHIP BARELY ABLE TO CONCEAL HIS WONDER AT HIS NEWFOUND CELEBRITY ISN'T SHEEPISH ABOUT HIS TALENTS LOOK AT THAT FACE HE SAYS POINTING TO A DISPLAY BEAR THAT FACE IS MAGIC ONE OUT OF FIVE TURNS OUT THAT WAY I JUST CAN'T EXPLAIN IT THE TEDDY BEAR JOURNALIST URGES HIM TO TRY ANYWAY I THINK I HAVE A BASIC APPRECIATION OF FORM MR GYLLENSHIP SAYS AND I KNOW WHAT I WANT A FACE TO LOOK LIKE HE THEN HINTS AT ONE OF HIS ARTISTIC SECRETS IT'S IN THE STUFFING THE TEDDY BEAR JOURNALIST SCRIBBLES FURIOUSLY MR GYLLENSHIP CONTINUES I TRIED POLYESTER AND IT'S NOT FOR ME IT WAS LUMPY AWFUL HORRID STUFF I USE KAPOK AND I FILL MY BEARS WITH A CONTINUOUS STREAM OF STUFFING NOT LITTLE WADS THAT WAY I AVOID ALL THE LUMPS HE LATER EXPLAINS THAT KAPOK IS AN ALLNATURAL FIBER TAKEN FROM THE SEEDS OF AN ASIAN TREE MR GYLLENSHIP'S FAME ISN'T LOST ON OTHER BEAR ARTISTS WHO FIND THEMSELVES TRYING TO CREATE EVERMORE ORIGINAL TEDDY BEARS AMID A GROWING THICKET OF COMPETITION WHILE HIS NICHE IS CHARMING FACIAL EXPRESSIONS OTHERS USE A VARIETY OF TECHNIQUES AND STYLES TO MAKE SURE THEIR TEDDYS AREN'T MERELY TYPICAL MRS GREENO MODELS HER BEARS FROM BRITISH SITCOM CHARACTERS JUNE KENDALL A DORSET BEAR ARTIST TAKES A MORE LITERARY APPROACH WE DO THOMAS HARDY BEARS SHE SAYS NOTING THE 19THCENTURY BRITISH NOVELIST HAILED FROM DORSET ONE OF HER CREATIONS IS NAMED TESS THOUGH NOVICE BEAR COLLECTORS MIGHT NOT IMMEDIATELY SEE THE CONNECTION BETWEEN THE WINSOME EIGHTINCHHIGH BEAR AND THE TRAGIC HARDY CHARACTER IN TESS OF THE D'URBERVILLES INDEED NOT EVERYBODY HERE AT THE FESTIVAL OF ARTIST BEARS FINDS THIS GROWNUP OBSESSION WITH BEARS CHARMING CAROLINE GALEA ALSO OF ESSEX IS ATTENDING HER FIRST TEDDY BEAR FEST AT THE INVITATION OF A BEARCOLLECTING FRIEND AFTER A COUPLE OF HOURS OF EXAMINING DESIGNER BEARS AND LISTENING TO BEAR ARTISTS COO OVER THEIR TEDDYS SHE SAYS I DON'T MEAN TO BE CYNICAL BUT I FIND THIS ALL VERY BIZARRE THAT SAID AN OBSERVER CAN'T HELP BUT NOTICE THAT IN MS GALEA'S LEFT HAND IS A SMALLISH BLACK TEDDY BEAR AH THIS SHE SAYS FLUSTERED SHE ADMITS SHE JUST BOUGHT IT FOR 65 9306210040 930621 INTERNATIONAL BRAZIL'S INFLATION RATE SLOWS RIO DE JANEIRO BRAZIL'S INFLATION RATE SLOWED SLIGHTLY IN MAY BUT CONSUMER PRICES STILL ROSE 268 THE GOVERNMENT SAID PRICES IN APRIL ROSE 284 ACCORDING TO THE NATIONAL CONSUMER PRICE INDEX THE INDEX MEASURES PRICES FOR FAMILIES EARNING AS MUCH AS ABOUT 700 A MONTH HOWEVER MORE THAN HALF OF BRAZILIAN WORKERS EARN LESS THAN 170 A MONTH CONSUMER PRICES ROSE 2337 FOR THE FIRST FIVE MONTHS OF 1992 AND 1353 DURING THE PAST 12 MONTHS 9306210039 930621 FOREIGN EXCHANGE DOLLAR'S SURGE KILLS YEN'S RALLY RISE AGAINST MARK IS EXPECTED TO WEAKEN BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK ANALYSTS PRONOUNCED THE YEN RALLY DEAD FRIDAY THE DOLLAR'S RELENTLESS ADVANCE THROUGHOUT THE DAY MARKED THE END THEY SAID OF ONEWAY TRADING THAT HAD LASTED MORE THAN FOUR MONTHS BUT ANALYSTS BELIEVE THE DOLLAR'S EQUALLY IMPRESSIVE ONEDAY RISE AGAINST THE MARK WILL PROVE EPHEMERAL IN A SESSION THAT STAYED HECTIC LATER THAN USUAL FOR A SUMMERTIME FRIDAY THE DOLLAR ADVANCED ALMOST THREE YEN TRADING AT 10965 YEN LATE IN THE AFTERNOON IN NEW YORK UP FROM 10730 YEN LATE THURSDAY THE DOLLAR ALSO ROSE TO ITS HIGHEST LEVEL AGAINST THE MARK SINCE MARCH 1992 TRADING AT 16810 MARKS LATE IN THE DAY UP FROM 16590 MARKS THURSDAY ABOUT NOON MONDAY IN TOKYO THE DOLLAR WAS TRADING AT 11069 YEN AND AT 16870 MARKS JAPANESE POLITICAL TURMOIL SET OFF THE YEN DECLINE HITTING THE CURRENCY MARKETS AT A TIME WHEN DEALERS WERE READY TO TAKE PROFITS ON THE YEN'S GAINS TRADERS AND ANALYSTS SAID THE DISSOLUTION OF THE LOWER HOUSE OF PARLIAMENT FOLLOWING A NOCONFIDENCE VOTE IN PRIME MINISTER KIICHI MIYAZAWA SET OFF ROUNDS OF PROFITTAKING THAT ACCELERATED AS MARKET PLAYERS DECIDED THAT THE DOLLAR RALLY WAS MORE THAN A MERE CORRECTION I THINK IT'S THE END OF THE YEN RALLY POLITICAL UNCERTAINTY WILL NOT ALTER JAPANESE ECONOMIC POLICY MUCH SAYS ERIC NICKERSON FOREIGNEXCHANGE ECONOMIST AT BANK OF AMERICA BUT IT CREATES ENOUGH UNCERTAINTY FOR FOREIGN INVESTORS AND WILL DO SUFFICIENT DAMAGE TO THE NIKKEI STOCK INDEX TO DISCOURAGE PEOPLE FROM AGGRESSIVELY BUYING YEN ALONE THE CRISIS IN JAPAN'S GOVERNMENT WOULDN'T RADICALLY UNDERMINE THE YEN TRADERS AND ANALYSTS SAY BUT THE PERCEPTION THAT THE US GOVERNMENT FAVORED A STRONG YEN AS A MEANS OF CUTTING JAPAN'S HUGE TRADE SURPLUS WAS BEGINNING TO LOSE FORCE IN SUSTAINING THE YEN'S GAINS THE YEN RALLY HAD REACHED THE POINT OF DIMINISHING RETURNS AS A TRADE TOOL SAYS MICHAEL O'HANLON SENIOR INTERNATIONAL ECONOMIST AT KIDDER PEABODY & CO IN LONDON BELOW 120 YEN TO THE DOLLAR THE YEN WAS ALREADY COMPETITIVELY PRICED HE SAYS AND THE PAIN TO JAPAN'S ECONOMY INFLICTED BY A STRONGER YEN DISCOURAGED JAPANESE CONSUMERS FROM BUYING IMPORTED GOODS REGARDLESS OF TRADE CONCESSIONS WRUNG FROM THE JAPANESE GOVERNMENT HE ADDS WITH THE YEN WEAKENING AND JAPANESE STOCK PRICES LIKELY TO BE HURT BY POLITICAL UNCERTAINTY INVESTORS WILL BE MORE INCLINED TO SEND MONEY ABROAD MR O'HANLON SAYS THESE CAPITAL FLOWS SHOULD WEAKEN THE YEN FURTHER THE NIKKEI STOCK INDEX CLOSED 12097 POINTS LOWER FRIDAY AT 1980454 THE FURTHER JAPANESE STOCK PRICES FALL THE MORE LIKELY THE BANK OF JAPAN WILL BE TO CUT RATES SAYS MR NICKERSON ANALYSTS DON'T EXPECT THE YEN TO GIVE BACK THE YEAR'S GAINS I'M NOT SURE IT'S GOING TO CRUMBLE BY ANY MEANS MR NICKERSON SAYS HE EXPECTS A RANGE OF 108 TO 112 YEN IN THE NEAR TERM PERHAPS RISING TOWARD 120 BY YEAR END BY CONTRAST ANALYSTS EXPECT THE DOLLAR TO RETREAT TO RECENT TRADING RANGES AGAINST THE MARK ROUGHLY BETWEEN 162 AND 165 MARKS DEALERS BOUGHT DOLLARS LAST WEEK ON THE EXPECTATION THAT GERMANY WILL LOWER INTEREST RATES AT A FASTER PACE BUT THOSE EXPECTATIONS MAY TURN OUT TO BE SELFDEFEATING THE BUNDESBANK GERMANY'S CENTRAL BANK IS COMMITTED TO PRICE STABILITY AND A STRONG CURRENCY AND IT WON'T CUT RATES IF THE MARK WEAKENS SIGNIFICANTLY ECONOMISTS SAY 9306210038 930621 JAY JACOBS POSTS 1STPERIOD LOSS SEATTLE JAY JACOBS INC SAID CAUTIOUS CONSUMER SPENDING DROVE DOWN SALES AND CAUSED THE COMPANY TO REPORT A LOSS OF 24 MILLION OR 41 CENTS A SHARE FOR THE FIRST FISCAL QUARTER THAT COMPARES WITH NET INCOME OF 355000 OR SIX CENTS A SHARE A YEAR EARLIER FOR THE PERIOD ENDED MAY 29 THE APPAREL RETAILER SAID REVENUE DECLINED 11 TO 348 MILLION FROM 392 MILLION 9306210037 930621 BUSINESS BRIEF CITICORP BANK IS SAID TO BE DISCUSSING JOINING NYCE TELLER GROUP ENDING ITS GOITALONE STRATEGY CITICORP IS NEGOTIATING TO JOIN THE NEW YORK CASH EXCHANGE ONE OF THE NATION'S LARGEST AUTOMATED TELLER NETWORKS WHILE THE COMPANIES HAVE BEEN TALKING FOR YEARS ABOUT A LINKUP DISCUSSIONS HAVE REACHED AN ADVANCED STAGE A PERSON FAMILIAR WITH THE TALKS SAYS STILL THE PERSON CAUTIONED THAT PREVIOUS TALKS HAVE BROKEN DOWN AND THERE IS NO DEFINITIVE AGREEMENT IF CITICORP JOINS NYCE THROUGH AN EQUITY INVESTMENT THE MOVE WOULD CONSOLIDATE A MAJOR SYSTEM AND REFLECT CITICORP'S DIFFICULTY REMAINING OUTSIDE THE POPULAR NETWORK CITICORP IS THE ONLY BIG NEW YORK BANK THAT HAS STAYED OUTSIDE NYCE FOR YEARS CITICORP BELIEVED IT WAS NOT NECESSARY TO JOIN THE NETWORK BECAUSE OF IT DOMINANCE IN THE RETAIL MARKET ON FRIDAY THE AMERICAN BANKER REPORTED THAT CITICORP AND MELLON BANK CORP ARE DISCUSSING JOINING NYCE A SPOKESWOMAN FOR NYCE SAID THE BANKS HAVE HAD DISCUSSIONS ON AND OFF FOR YEARS BUT DECLINED FURTHER COMMENT THE TWO BANKS DECLINED COMMENT 9306210036 930621 TECHNOLOGY GREENWICH PHARMACEUTICALS DRUG FORT WASHINGTON PA GREENWICH PHARMACEUTICALS INC SAID IT FILED A EUROPEAN PRODUCT LICENSE APPLICATION TO SELL ITS THERAFECTIN RHEUMATOID ARTHRITIS DRUG IN IRELAND THE DEVELOPMENTSTAGE PHARMACEUTICAL COMPANY SAID THE FILING IS PART OF ITS STRATEGY TO ESTABLISH EUROPEAN PARTNERSHIPS AND COMMERCIALIZE THE DRUG AS QUICKLY AS POSSIBLE GREENWICH FILED A NEW DRUG APPLICATION IN THE US FOR THERAFECTIN IN MARCH THERAFECTIN IS GREENWICH'S BRAND OF AMIPRILOSE HCL A SYNTHETIC CARBOHYDRATE WITH NOVEL THERAPEUTIC ACTIVITY THE COMPANY SAID 9306210035 930621 INTERNATIONAL RUSSIAN RUBLE STRENGTHENS MOSCOW THE RUSSIAN RUBLE ROSE FOR THE THIRD STRAIGHT DAY FRIDAY CLOSING AT 1085 TO THE DOLLAR ON THE MOSCOW INTERBANK CURRENCY EXCHANGE AT THE PREVIOUS AUCTION ON THURSDAY THE RUBLE TRADED AT 1090 9306210034 930621 LOCALS DON'T WANT HIM TO WORK A SWING SHIFT IN THEIR PLAYGROUND BY STEVE STECKLOW STAFF REPORTER OF THE WALL STREET JOURNAL WHEN WILBUR LAPAGE NEW HAMPSHIRE'S DIRECTOR OF PARKS AND RECREATION DENIGRATED OLDFASHIONED PLAYGROUND EQUIPMENT GRANITE STATERS CAME OUT SWINGING THE UPROAR BEGAN RECENTLY WHEN MR LAPAGE WAS ASKED BY A LOCAL REPORTER WHY HIS DEPARTMENT WAS REMOVING 1960SERA PLAYGROUND EQUIPMENT FROM WADLEIGH STATE PARK IN RURAL SUTTON THE DIRECTOR SAID STATE PARKS AREN'T APPROPRIATE FOR MINDDEAD SWINGING BACK AND FORTH ADDING THAT MUCH OF HIS DEPARTMENT'S PLAYGROUND EQUIPMENT LOOKS LIKE IT CAME FROM THE BRONX THAT DIDN'T SIT WELL WITH A LOT OF NEW HAMPSHIRE RESIDENTS WHO SENT THE GOVERNOR PHOTOS OF GRANDMOTHERS HAPPILY SWINGING IN THEIR BACKYARDS THE UNION LEADER IN MANCHESTER RAN A FRONTPAGE EDITORIAL HEADLINED SAVE OUR SWINGS DUMP THE ADULTS IT ACCUSED STATE RECREATION OFFICIALS OF HAVING SKIPPED CHILDHOOD ALTOGETHER US REP ELIOT ENGEL D NY WHOSE DISTRICT INCLUDES THE BRONX DIDN'T FANCY MR LAPAGE'S CHARACTERIZATION OF THE BOROUGH SAYING THIS MAN IS UNABLE TO SEE THE FUN IN PLAYING ON A SWING SET I'M NOT SURE HE'S FIT TO BE A RECREATION DIRECTOR IN THIS COUNTRY FOR HIS PART MR LAPAGE WHO HAS BEEN IN CHARGE OF THE STATE PARK SYSTEM FOR 10 YEARS SAYS HE'S BEEN MISUNDERSTOOD MR LAPAGE SAYS HE ISN'T AGAINST SWINGING PER SE HE JUST BELIEVES URBANSTYLE SWINGS AREN'T APPROPRIATE FOR WOODSY PARKS OR HISTORICAL SITES THAT'S EQUIVALENT TO PUTTING A JUNGLE GYM RIGHT IN FRONT OF OLD FAITHFUL HE SAYS FOR SEVERAL YEARS HIS DEPARTMENT HAS BEEN QUIETLY UPGRADING THE STATE'S 120 RECREATIONAL AREAS REMOVING OLDER PLAYGROUND EQUIPMENT AND MAKING ROOM FOR NATURALISTIC PLAYSCAPES MADE WITH SUCH MATERIALS AS WOOD TUBING AND ROPE LAPAGE SAYS THEY'RE MORE ATTRACTIVE SAFER AND ACCESSIBLE FOR THE HANDICAPPED NEVERTHELESS THE UPROAR HAS CAUSED HIM TO BACK OFF HIS PLAN TO REMOVE THE SWINGS FROM WADLEIGH STATE PARK LOCAL RESIDENT MARJORIE R KNIGHT WHO CLAIMS SHE BLEW THE WHISTLE BY CALLING A REPORTER WHEN SHE LEARNED OF MR LAPAGE'S ORIGINAL PLANS SAYS SHE SWUNG IN HER BACKYARD TO CELEBRATE WHAT A WONDERFUL FEELING IT WAS SHE SAYS WITH ALL DUE RESPECT TO MR LAPAGE IT CERTAINLY IS NOT A BRAINDEAD ACTIVITY 9306210033 930621 ROCHESTER TELEPHONE CORP ROCHESTER NY ROCHESTER TELEPHONE CORP SAID IT WILL REDEEM ITS SERIES E SERIES F AND SERIES G FIRST MORTGAGE BONDS ON JULY 21 A TOTAL OF 60 MILLION OF DEBT OR 10 OF THE COMPANY'S TOTAL DEBT WILL BE REDEEMED IN ORDER TO TAKE ADVANTAGE OF LOWER INTEREST RATES ROCHESTER TELEPHONE SAID THE COMPANY HAS FILED FOR REGULATORY APPROVAL TO REISSUE 72 MILLION IN LONGTERM DEBT TO COVER THE 60 MILLION AND OTHER HIGHCOST DEBT AT ITS TELEPHONE SUBSIDIARIES 9306210032 930621 BUSINESS BRIEF LM ERICSSON TELEFON CONTRACT FOR 150 MILLION OVER 3 YEARS IS WON BY UNIT ERICSSON GE MOBILE COMMUNICATIONS INC A UNIT OF SWEDEN'S LM ERICSSON TELEFON SAID IT RECEIVED A THREEYEAR 150 MILLION CONTRACT TO UPGRADE CELLULAR SERVICE IN THE DALLASFORTH WORTH AREA ERICSSON GE MOBILE IN WHICH GENERAL ELECTRIC CO HAS A 20 INTEREST RECEIVED THE CONTRACT FROM METROCEL THE CELLULAR SERVICE PROVIDER IN THE DALLASFORT WORTH AREA METROCEL IS OWNED BY MCCAW CELLULAR COMMUNICATIONS CO AND ITS UNIT LIN BROADCASTING CORP ERICSSON WILL REPLACE METROCEL'S CURRENT SWITCHING SYSTEM WITH A DIGITAL CELLULAR SWITCHING SYSTEM EMPLOYING TIME DIVISION MULTIPLE ACCESS ONE OF TWO NEW TECHNOLOGIES COMPETING TO BE THE DOMINANT CELLULAR TECHNOLOGY 9306210031 930621 CODEALARM TO PURCHASE SHARES MADISON HEIGHTS MICH CODEALARM INC SAID IT DECIDED TO PURCHASE UP TO 100000 SHARES OF ITS COMMON STOCK ON THE OPEN MARKET BY THE END OF THE YEAR THE MAKER OF VEHICLE AND HOME SECURITY PRODUCTS HAS ABOUT 25 MILLION COMMON SHARES OUTSTANDING WE FEEL THAT CODEALARM STOCK IS UNDERVALUED IN THE MARKETPLACE AND WE INTEND TO CAPITALIZE ON THE OPPORTUNITY SAID RAND MUELLER THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE IN OVERTHECOUNTER TRADING FRIDAY CODEALARM CLOSED AT 8 UP 50 CENTS 9306210030 930621 HOLLYWOOD CASINO LOSES IN ITS GAMBLE FOR LOUISIANA LICENSE STOCK FALLS 15 BY JEFF D OPDYKE AND SCOTT MCCARTNEY STAFF REPORTERS OF THE WALL STREET JOURNAL IN THE HIGHSTAKES GAMBLE FOR RIVERBOAT GAMBLING LICENSES IN LOUISIANA RECENT WALL STREET HIGHFLIER HOLLYWOOD CASINO CORP CRAPPED OUT WHILE A LITTLEKNOWN DALLAS COMPANY HIT THE JACKPOT FOR HOLLYWOOD CASINO WHICH JUST WENT PUBLIC IN LATE MAY NOT GETTING THE LICENSE EFFECTIVELY SHUTS THEM OUT OF RIVERBOAT GAMBLING IN THE BAYOU STATE THE LOUISIANA LEGISLATURE CAPPED RIVERBOAT GAMBLING LICENSES AT 15 AND ALL HAVE BEEN AWARDED AS A RESULT HOLLYWOOD SAW ITS SHARES STUMBLE 4 OR 15 TO 2225 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY MEANWHILE A LICENSE WAS GRANTED TO PRIVATELY HELD ST CHARLES GAMING CO TO BUILD AND OPERATE A RIVERBOAT CASINO ON THE WEST BANK OF THE MISSISSIPPI RIVER 10 MILES FROM NEW ORLEANS INTERNATIONAL AIRPORT LAST WEEK SKYLINK AMERICA INC OF DALLAS ANNOUNCED AN AGREEMENT WITH ST CHARLES TO PARTICIPATE IN THE RIVERBOAT OPERATION THAT AGREEMENT HINGED ON ST CHARLES'S WINNING A LOUISIANA LICENSE SKYLINK WHICH OFFERS CABLE TELEVISION PROGRAMMING AND SERVICES SAID THAT IT WOULD NOW FOCUS ON GAMBLING AND SELL OFF ITS REMAINING CABLE OPERATIONS SKYLINK PRESIDENT EDWARD R MCMURPHY WOULDN'T SAY WHETHER THE AGREEMENT WITH ST CHARLES WILL LEAD TO A MERGER OR SIMPLY A PARTNERSHIP BETWEEN THE TWO COMPANIES HE DID SAY HOWEVER THAT SKYLINK WILL IMMEDIATELY BEGIN BUILDING A 20 MILLION TO 25 MILLION BOAT IN THE WEEK SINCE THE ANNOUNCEMENT OF THE AGREEMENT SKYLINK STOCK ROSE MORE THAN FIVEFOLD AFTER SELLING FOR AS LITTLE AS 875 CENTS A SHARE JUNE 11 THE STOCK CLOSED FRIDAY IN OVERTHECOUNTER TRADING AT 5375 UP 167 CENTS AFTER BEING HALTED FOR FOUR HOURS PENDING NEWS A SPOKESMAN FOR HOLLYWOOD CASINO WHOSE MAIN INTERESTS ARE THE SANDS CASINO HOTEL IN ATLANTIC CITY NJ THROUGH 81OWNED PRATT HOTEL CORP AND A RIVERBOAT VENTURE WEST OF CHICAGO BLAMED THE FAILED BID ON A REQUIREMENT FOR VOTER APPROVAL IN THE PARISHES WHERE THE COMPANY HOPED TO LOCATE A CASINO THE COMPANY WHICH OPENED ITS AURORA ILL RIVERBOAT COMPLEX WEDNESDAY SAID IT PLANNED TO TRY AGAIN IN LOUISIANA FROM WHAT WE'VE HEARD THERE WILL BE MORE AWARDED THIS YEAR AND IF THERE ARE MORE LICENSES WE WILL PURSUE THE OPPORTUNITY THE SPOKESMAN SAID BUT ANALYST STEVEN EISENBERG OF OPPENHEIMER & CO SAID HOLLYWOOD IS DREAMING BECAUSE OF THE LEGISLATIVE CAP THAT'S IT NO MORE HE SAID AFTER OPENING AT 16 A SHARE IN ITS FIRST DAY OF TRADING MAY 28 HOLLYWOOD CASINO'S STOCK SOARED AS HIGH AS 31 A SHARE BEFORE PULLING BACK ON THE AMERICAN STOCK EXCHANGE FRIDAY SHARES IN PRATT HOTEL ALSO FELL 875 CENTS TO 1225 OTHER PUBLICLY TRADED COMPANIES WHO RECEIVED PRELIMINARY APPROVAL FOR A RIVERBOAT CASINO WERE CAESARS WORLD INC LOS ANGELES BOOMTOWN INC RENO NEV AND CAPITAL GAMING INTERNATIONAL ATLANTIC CITY NJ ALL WILL DOCK THEIR BOATS IN OR NEAR NEW ORLEANS BALLY MANUFACTURING CORP WAS ALSO AWARDED A LICENSE IN A JOINT VENTURE WITH PRIVATELY HELD CASINO CARNIVAL I'M NOT WORRIED ABOUT THE COMPETITION WE'RE GOING FOR THE LOCAL MARKET AND THE TOURISTS WHO BYPASS NEW ORLEANS FOR THE BAYOU COUNTRY SAID TIM PARROTT CHAIRMAN OF BOOMTOWN WHICH WILL HAVE A BOAT PLYING A CANAL 10 MINUTES WEST OF NEW ORLEANS' FAMED FRENCH QUARTER HIGHROLLERS WHO TOSSED SNAKE EYES IN THE BID FOR ONE OF THE LICENSES INCLUDED DONALD TRUMP POPEYE'S FRIED CHICKEN FOUNDER AL COPELAND AND SUCH PUBLICLY TRADED CASINO ENTERPRISES AS ARGOSY GAMING CO GRAND CASINOS INC AND PRESIDENT RIVERBOAT CASINOS INC I'M NOT REAL HAPPY WITH THIS SAID MR COPELAND NOW I'VE GOT A GAMING COMPANY LOOKING FOR A PLACE TO GAME GRAND CASINOS INC SAID IT DIDN'T APPLY FOR A RIVERBOAT CASINO LICENSE IN LOUISIANA AN ARTICLE YESTERDAY INCORRECTLY INDICATED THE COMPANY WAS DENIED SUCH A LICENSE 9306210029 930621 WORK & FAMILY A SPECIAL REPORT ON THE JOB FAMILY FEUD WHAT SHOULD COMPANIES DO ABOUT EASING WORKFAMILY CONFLICTS WE ASKED TWO PEOPLE WITH DECIDEDLY DIFFERENT VIEWS IN THE PAST SEVERAL YEARS SOME OF THE NATION'S BESTKNOWN COMPANIES HAVE CARVED OUT NEW FRONTIERS IN EMPLOYEE BENEFITS BY EMBRACING PROGRAMS AIMED AT EASING EMPLOYEES' CONFLICTS BETWEEN WORK AND FAMILY CHILDCARE CENTERS AND OTHER FAMILYFRIENDLY PROGRAMS HAVE DRAWN HEAVY MEDIA ATTENTION AS THE BENEFITS OF THE FUTURE PROPONENTS SAY THAT THE PREVAILING CORPORATE CULTURE IN MOST BUSINESSES REFLECTS THE TRADITIONAL FAMILY STRUCTURES OF THE 1950S BUSINESSES THEY SAY NEED TO TAKE AN ACTIVIST STANCE ON BEHALF OF WORKERS WITH FAMILY DUTIES JUST TO LEVEL THE PLAYING FIELD AND AVOID LOSING THE BEST TALENT AND FUTURE LEADERS THE WORK FORCE HAS TO OFFER BUT MOST AMERICAN COMPANIES HAVE HESITATED TO BREACH THE TRADITIONAL WALL BETWEEN WORK AND FAMILY EMPLOYERS HAVE NO BUSINESS INVOLVING THEMSELVES MORE DEEPLY IN WORKERS' FAMILY LIVES OPPONENTS BELIEVE THEY SHOULD FOCUS INSTEAD ON WHAT THEY DO BEST CREATING JOBS AND AVOID OPENING THE PANDORA'S BOX OF RAISED EXPECTATIONS EMPLOYER LIABILITY INVASION OF PRIVACY AND EVEN ACCUSATIONS OF UNFAIRNESS THAT WORKFAMILY PROGRAMS CAN CAUSE IN AN EFFORT TO SHED LIGHT ON THIS ISSUE THE WALL STREET JOURNAL INVITED TWO HUMANRESOURCES EXPERTS TO PARTICIPATE IN A DEBATE THE DEBATE WAS MODERATED BY SUE SHELLENBARGER THE WALL STREET JOURNAL'S WORK & FAMILY COLUMNIST ARGUING IN FAVOR OF WORKFAMILY PROGRAMS IS FRAN SUSSNER RODGERS CHIEF EXECUTIVE OF WORK/FAMILY DIRECTIONS INC A BOSTON CONSULTING FIRM THAT HELPS COMPANIES PUT TOGETHER WORKFAMILY PROGRAMS ARGUING AGAINST BROAD WORKFAMILY BENEFITS IS JOHN GOODWIN MANAGER OF HUMAN RESOURCES AT A LARGE MIDWESTERN ENERGY COMPANY AND A FORMER DIRECTOR OF THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT A PROFESSIONAL HUMANRESOURCES ORGANIZATION HERE ARE EXCERPTS FROM THE DISCUSSION IN SOLVING EMPLOYEES' WORKFAMILY CONFLICTS MS RODGERS TO ME IT'S A PRACTICAL AND COMMONSENSE MATTER THE ROLE OF BUSINESS SHOULD BE TO CONTINUALLY ADJUST NOT ONLY TO CHANGING COMPETITIVE AND BUSINESS PRESSURES BUT TO THE CHANGING NEEDS OF ITS OWN WORK FORCE AS IT APPLIES TO WORKFAMILY CONFLICT THE CHALLENGE IS TO DO WHATEVER IT TAKES TO MAKE IT POSSIBLE FOR PEOPLE TO CONTRIBUTE THE MOST AT WORK AND CARE FOR THEIR FAMILIES TO THE EXTENT THAT THESE THINGS ARE ANTAGONISTIC TO EACH OTHER THE BUSINESS AND THE FAMILY SUFFER I'VE BEEN WORKING IN THIS AREA FOR MORE THAN 20 YEARS AND IT'S JUST SHOCKING THAT ALMOST NO MATTER WHERE YOU GO THIS HUGE GULF BETWEEN WORK AND FAMILY STILL EXISTS AND IN MOST CASES IT EXISTS FOR REASONS THAT HAVE NO BUSINESS RATIONALE THERE'S STILL THIS SENSE THAT WE CAN MANAGE PEOPLE THE WAY WE MANAGED THEM 20 TO 25 YEARS AGO AS THOUGH THEY ARE ALL MEN WITH WIVES AT HOME MR GOODWIN I THINK THE ROLE OF BUSINESS WITH REGARD TO EMPLOYEES IS TO TREAT THEM WITH DIGNITY AND PARTICULARLY WITH RESPECT T O RESPECT YOUR PEOPLE AS INDIVIDUALS WHO HAVE THE INTELLIGENCE AND THE ABILITY TO SOLVE THEIR PROBLEMS EMPLOYEES WHO HAVE CONFLICTS BETWEEN WORK AND FAMILY NEED TO BE MANAGED WITH COMPASSION AND INSIGHT AND RESPECT FOR THEIR INDIVIDUAL DIFFERENCES BUT I DON'T THINK EMPLOYERS NEED A LOT OF NEW PROGRAMS TO DEAL WITH IT UNFORTUNATELY THE REASON WE DESIGN A LOT OF THESE PROGRAMS IS TO MAKE EMPLOYEES DEPENDENT THE MOST PRODUCTIVE EMPLOYEES ARE INDEPENDENT EMPLOYEES NOT DEPENDENT ONES ANY PROGRAM WITH THE WORD CARE AFTER ITS NAME COMPANIES SHOULD GET OUT OF I THINK WORKFAMILY CONFLICT HAS BEEN HYPED TO A LARGE EXTENT BY THE MEDIA I WISH NEWSPAPERS INSTEAD WOULD RUN A PAGE SHOWING HOW MANY COMPANIES WITH GREAT WORKFAMILY PROGRAMS HAVE LAID A LOT OF PEOPLE OFF IN THE PAST YEAR THE THING A FAMILY NEEDS MOST IS SECURE EMPLOYMENT THE EMPLOYER'S ROLE IS TO PROVIDE PEOPLE WITH A SAFE SECURE WORKPLACE AND WITH TIME OFF TO TAKE CARE OF THEIR OWN FAMILY ISSUES WSJ WHAT DO YOU MEAN BY TIME OFF FOR PEOPLE TO TAKE CARE OF THEIR OWN FAMILY ISSUES MR GOODWIN TIME OFF IS THE ONLY BENEFIT EMPLOYERS OFFER THAT I THINK ADDS TO PRODUCTIVITY IF AN EMPLOYEE NEEDS TIME OFF TO ATTEND TO SOME FAMILY ISSUE A GOOD MANAGER WILL SIT DOWN AND LOOK AT THE REQUEST AND SEE WHETHER IT CAN BE WORKED OUT EITHER ON A PAID OR UNPAID BASIS YOU RESPOND TO EACH INDIVIDUAL BASED ON THE SITUATION NOT ON ANY WRITTEN POLICY THE MORE LOCKED INTO PRACTICES AND POLICIES YOU GET THE MORE YOU GET LOCKED INTO BEING UNFAIR YOU BECOME EQUITABLE BUT YOU DON'T BECOME FAIR TAKING INTO CONSIDERATION INDIVIDUAL DIFFERENCES WSJ WHAT IF AN EMPLOYEE NEEDS A LOT OF TIME OFF MR GOODWIN YOU HAVE TO CREATE A BALANCE THE MANAGER HAS TO MAKE A JUDGMENT IS THIS IN THE BEST INTERESTS OF THE COMPANY FOR AN EMPLOYEE TO BE OFF FOR THIS LONG YOU HAVE TO SIT DOWN AND LOOK AT EACH CASE MS RODGERS I'M STARTLED BY THE NOTION THAT GIVING TIME OFF IS THE ONLY BENEFIT THAT ADDS TO PRODUCTIVITY IT'S ACTUALLY THE ONLY OPTION THAT TAKES THE PERSON AWAY FROM BEING PRODUCTIVE IF YOU ASSIST SOMEBODY IN RESOLVING AN ISSUE EFFICIENTLY OR IF YOU RESTRUCTURE THE WORK TO ALLOW THEM TO DEAL WITH IT WHILE THEY'RE STILL WORKING CLEARLY THAT IS A WAY TO MAXIMIZE PRODUCTIVITY AS OPPOSED TO JUST LETTING THEM GO SECOND IN TERMS OF DEALING WITH THESE ISSUES ON A CASEBYCASE BASIS I THINK VERY OFTEN THAT IS HOW IT SHOULD BE DONE I AGREE THAT YOU DON'T WANT RIGID RULES ON HOW TO PROCEED BUT CERTAIN SITUATIONS ARE SO COMMON THAT A PROTOCOL SHOULD BE ESTABLISHED LIKE SOMEBODY LEAVING TO HAVE A BABY YOU DON'T WANT TO START FROM SCRATCH EVERY TIME SOMEONE HAS A BABY BASICALLY I ALSO HAVE A GREAT DEAL OF FAITH AND TRUST IN MOST PEOPLE THAT IF YOU GET OUT OF THEIR WAY THEY WILL DO WHAT'S RIGHT BUT THE REALITY IS THAT RESPECT FOR THE INDIVIDUAL IN MOST COMPANIES IS ACTUALLY BASED ON A STRUCTURE THAT IS BIASED AGAINST CERTAIN PEOPLE PEOPLE ARE MANAGED VERY VERY RIGIDLY THEY ARE CONSTANTLY HAVING ROADBLOCKS PUT IN THEIR WAY BETWEEN DOING THEIR BEST AT WORK AND TAKING CARE OF THEIR FAMILIES WSJ WHAT ARE SOME OF THESE ROADBLOCKS MS RODGERS THE WAY COMPANIES STRUCTURE THE WORK THE DAY AND THE WAY PEOPLE ARE EXPECTED TO PRODUCE IN MOST CORPORATE CULTURES PEOPLE WHO ACT AS THOUGH THEY HAVE NOTHING ELSE BUT WORK IN THEIR LIVES SUCCEED THE ONE WHO CAN TRANSFER IS THE ONE WHO MOVES AHEAD SUCCESS COMES TO THE PERSON WITH THE LEAST NUMBER OF THINGS TO KEEP HIM OR HER FROM MOVING AROUND FROM BEING AVAILABLE AT A MOMENT'S NOTICE FROM WORKING ANY HOURS FROM DOING WORK IN PHYSICAL VIEW OF MANAGERS ALL THINGS THAT DON'T REALLY HAVE A BUSINESS RATIONALE ALL OF THOSE RULES HAVE TO BE REEXAMINED IN LIGHT OF THE NEW LABOR FORCE IF THE GOAL IS TO LET EVERYBODY REALIZE THEIR POTENTIAL AND CONTRIBUTE THE MOST THEY CAN WSJ BUT SOME JOBS CAN'T BE RESTRUCTURED YOU MAY HAVE TO BE WORKING LONG HOURS AVAILABLE AT A MOMENT'S NOTICE OR WORKING IN THE PHYSICAL VIEW OF YOUR MANAGER IN ORDER TO GET THE WORK DONE MS RODGERS THAT'S ABSOLUTELY TRUE BUT THE PROBLEM IS THAT IT REFLECTS A VERY COMMON BELIEF EVERYBODY THINKS THAT SOMEBODY ELSE'S WORK CAN BE MADE MORE FLEXIBLE BUT THEIRS CANNOT I HAVE NEVER SEEN A SITUATION THAT CAN'T BE MADE MORE FLEXIBLE BUT NOT NECESSARILY IN THE SAME WAY AS SOME OTHER JOBS CAN BE MADE MORE FLEXIBLE FOR INSTANCE I'VE BEEN INVOLVED IN MANY ROUNDTHECLOCK OPERATIONS WHERE THERE IS NO QUESTION THAT THERE HAS TO BE A BODY ON THE SEAT OR SOMEONE ON HAND TO HELP OUT THE CUSTOMER AT ALL TIMES BUT THOSE ARE OFTEN OPPORTUNITIES TO BE MORE FLEXIBLE WHY CAN'T PEOPLE SELFSCHEDULE THEIR WORK AS LONG AS THEY'RE RESPONSIBLE TO MAKE SURE THERE'S A BODY THERE ALL THE TIME OR CUSTOMER NEEDS ARE MET YOU DON'T HAVE TO HAVE THE COMPANY SETTING THE SCHEDULE THE EMPLOYEES THEMSELVES CAN DO IT IT HAPPENS ALL THE TIME IN THE AIRLINE INDUSTRY AND AMONG INTERNS IN HOSPITALS BUT RARELY IN CORPORATIONS ALL PEOPLE NEED IS THE FREEDOM TO TRADE OFF WITH EACH OTHER AND A CLEAR UNDERSTANDING OF THE SKILLS THEY NEED TO TRADE PEOPLE ALSO ASSUME THAT THEY CAN'T MEET CUSTOMER NEEDS AND ALSO BE FLEXIBLE BUT IT'S NOT TRUE I'VE BEEN IN MANY ORGANIZATIONS THAT DRIVE PEOPLE AND GIVE THEM NO FLEXIBILITY BECAUSE THEY SAY THE CUSTOMER COMES FIRST AND THE CUSTOMER WON'T ACCEPT ANY VARIATIONS I ALWAYS SAY LET'S ASK THE CUSTOMER OFTEN THE RESPONSE IS THAT THE CUSTOMERS HATE TURNOVER AND CONSTANTLY HAVING TO DEAL WITH PEOPLE WHO DON'T KNOW THEIR BUSINESS THEY SAY I WOULD MUCH RATHER UNDERSTAND AN EXPERIENCED PERSON'S SCHEDULE AND HAVE THEM AVAILABLE IN AN EMERGENCY RATHER THAN CONSTANTLY HAVING TO TRAIN NEW PEOPLE TO UNDERSTAND MY ACCOUNT NOBODY WOULD EVER SUGGEST THAT THE GOAL OF FLEXIBILITY IS TO SAY YES TO EVERYTHING AND NEGLECT THE GOALS OF THE BUSINESS THE PROBLEM IS FIGURING OUT HOW TO DO BOTH WSJ JOHN DO YOU SEE THESE BARRIERS IN THE WORKPLACE MR GOODWIN I THINK THAT'S A RED HERRING A NONISSUE THE WORSTCASE COMPANIES HAVE BEEN HIGHLIGHTED BY THE MEDIA AND BY ADVOCATES IN THE WORKFAMILY AREA IF EVERYBODY RESPONDED BY BECOMING COMPLETELY TOTALLY FLEXIBLE THE EMPLOYEES WOULD ALL GO WILLYNILLY AND EVERYBODY WOULD EVENTUALLY BE OUT OF WORK I AGREE THAT WE NEED TO STRUCTURE A BETTER WORKPLACE THAT MEASURES PRODUCTIVITY AND IDENTIFIES THE GOALS OF THE CORPORATION AND THE BUSINESS IF WE DO THAT RIGHT THE EMPLOYEES WILL TAKE OWNERSHIP OF THAT GOAL BUT WHERE WE DAMAGE THAT AIM IS WHEN WE GO ONE STEP FURTHER AND FOR LACK OF A BETTER TERM WE BECOME NICE WE DO ALL THE NICE THINGS INSTEAD OF WHAT IS FAIR TO EMPLOYEES THERE IS NOTHING THAT WE PROVIDE AS EMPLOYERS THAT EMPLOYEES COULD NOT GO OUT AND PROVIDE THEMSELVES AND DO A MUCH BETTER JOB WSJ BUT EMPLOYEES CAN'T GO OUT AND GET FLEXTIME OR JOB SHARING FOR THEMSELVES THAT HAS TO BE DONE IN COOPERATION WITH THE EMPLOYER MR GOODWIN THE EMPLOYER SHOULD DESIGN FLEXIBLE WORK SCHEDULES OR JOB SHARING OR WHATEVER FOR PRODUCTIVITY IMPROVEMENTS ON A CASEBYCASE BASIS THOSE AREN'T BENEFITS IF A SINGLE PERSON WITH NO DEPENDENTS WANTS TO BE OFF FROM NOON TO 4 PM AND CAN WORK TWICE AS FAST FROM 4 PM TO 8 PM YOU GIVE HIM A FLEXIBLE SCHEDULE IT HAS NOTHING TO DO WITH FAMILY IT HAS TO DO WITH GETTING YOUR WORK DONE AND SATISFYING THE WORKER MS RODGERS JOHN OBVIOUSLY HAS NEVER SEARCHED FOR CARE FOR CHILDREN OR ELDERS BUT I HAVE AND I CAN TELL YOU THAT IT'S DIFFICULT TIMECONSUMING AND FRUSTRATING AND A LITTLE ASSISTANCE GOES A LONG WAY TO HELP PEOPLE FOCUS BACK ON THEIR WORK AND PRODUCE RESULTS FOR THE COMPANY JOHN SEEMS TO HAVE THIS ATTITUDE THAT HELPING PEOPLE WITH THESE THINGS CREATES DEPENDENCIES COMPANIES DON'T ACTUALLY DO THIS FOR PEOPLE LOCK STOCK AND BARREL PRACTICALLY NO EMPLOYERS PROVIDE AND PAY FOR CHILD CARE FOR EMPLOYEES MOST WORK WITH PEOPLE AS PARTNERS AND TRY TO GET THEM BACK TO WORK AND BEING PRODUCTIVE AS SOON AS POSSIBLE WITH REGARD TO HIS POINT ON RESOLVING THINGS ON A CASEBYCASE BASIS IN THE BEST OF ALL POSSIBLE WORLDS OUR MANAGERS WOULD HAVE SUCH GOOD COMMON SENSE AND BUSINESS SENSE THAT NO RULES WOULD BE NECESSARY BUT IN THE REAL WORLD GUIDELINES SHOULD ALWAYS BE NECESSARY TO ENSURE SOME SENSE OF FAIRNESS AND EQUITY I WOULD DISTINGUISH GUIDELINES FROM RIGID RULES MR GOODWIN THE GREATEST FREEDOM WE HAVE IN AMERICA IS FREEDOM OF CHOICE EVERYTHING YOU DO TO INFRINGE ON THAT WHETHER AS A GOVERNMENT OR A COMPANY HAS A RESTRICTIVE EFFECT ON GROWTH MS RODGERS BUT EVERY COMPANY HAS PRETTY CLEAR RULES ABOUT WHAT YOU HAVE TO DO TO SUCCEED IF THESE RULES STAY THE SAME AND THE POPULATION CHANGES THEN THERE IS NO REAL CHOICE FOR LARGE NUMBERS OF INCREDIBLY TALENTED PEOPLE PARTICULARLY WOMEN IN REALITY THE LIVES OF WOMEN AND YOUNGER WOMEN IN PARTICULAR ARE SO DIFFERENT THAN MOST MEN AND CERTAINLY MANY PEOPLE FROM ANOTHER GENERATION THAT THEY DO NOT HAVE THE CHOICES WHAT HAPPENS IN REALITY IS THAT THEY CANNOT REACH THEIR POTENTIAL AND THEY'RE INCREDIBLY FRUSTRATED THAT'S AN INCREDIBLE LOSS AND IT'S STUPID IT MAKES NO BUSINESS SENSE MR GOODWIN I THINK AND I'M SPEAKING AS A PURIST YOU SELECT THE BESTQUALIFIED PERSON FOR A POSITION MALE OR FEMALE THAT DOESN'T MATTER AND THAT PERSON HAS THE OPPORTUNITY THEN TO ACCEPT THAT POSITION OR REJECT IT THAT'S THEIR CHOICE MS RODGERS SUPPOSE A COMPANY OFFERS 10 PEOPLE TO RELOCATE FOR A JOB AND TIME AFTER TIME THE ONLY PERSON WHO WILL ACCEPT THAT RESPONSIBILITY IS A MAN WHOSE WIFE DOESN'T WORK YET THE COMPANY MADE THIS GREAT EFFORT TO RECRUIT IN ALL THESE TALENTED PEOPLE AND ENDED UP WITH A DIVERSE WORK FORCE OF 30 TO 50 WOMEN WITH 10 MEN WHOSE WIVES DID WORK TIME AFTER TIME THE OPPORTUNITY GOES NOT TO THE MOST TALENTED PERSON NOT TO THE PERSON WHO ULTIMATELY WOULD BE THE BEST LEADER BUT TO THE PERSON WHO CAN MOVE THERE ARE TWO CONSEQUENCES OF THAT THAT MAKE NO BUSINESS SENSE THE FIRST IS THE COMPANY CAN NOT POSSIBLY BE DEVELOPING ITS MOST TALENTED PEOPLE SECOND IF YOU ASK THAT COMPANY WHY THEY DO THIS THEY OFTEN CANNOT GIVE YOU A GOOD REASON WHY RELOCATION IS SO CRITICAL THEY SAY IT IS TO GET BREADTH IN THE BUSINESS YET PEOPLE WITH NO INDUSTRY EXPERIENCE ARE INCREASINGLY BEING BROUGHT IN TO LEAD OUR COMPANIES IN GENERAL MORE THOUGHT SHOULD BE GIVEN TO MOVING EXPERIENCES AND RESPONSIBILITY TO AN EMPLOYEE RATHER THAN MOVING THE EMPLOYEE TO A JOB MR GOODWIN THIS PATTERN THAT HAS DEVELOPED THAT YOU HAVE TO TRANSFER TO ADVANCE IS WRONG AND THAT HAS CREATED THE CRITICISM THAT PEOPLE WITH FAMILIES DON'T HAVE CHOICES IN THAT INSTANCE THE CRITICISM IS PROBABLY CORRECT PEOPLE SHOULD NOT HAVE TO TRANSFER TO ADVANCE THE STRUCTURE OF A JOB SHOULD BE DETERMINED ONLY BY THIS WHAT DOES IT TAKE TO GET THE JOB DONE EFFECTIVELY PERIOD IF IT HAPPENS TO TAKE SOMETHING THAT PEOPLE ARE UNWILLING TO GIVE THEN THEY'RE NOT QUALIFIED FOR THE JOB THE COMPANY HAS THE RIGHT TO SAY THIS IS WHAT WE EXPECT OF THE PERSON WHO IS GOING TO DO THIS JOB IT HAS NOTHING TO DO WITH GENDER COMPANIES SHOULD IDENTIFY THE SKILLS NECESSARY AND GO TO THE PEOPLE WITH THE SKILLS NECESSARY TO DO THE JOB PERIOD MS RODGERS YOU SAY THAT PEOPLE MAY BE UNWILLING TO GIVE WHAT IT TAKES UNWILLING AND UNABLE ARE TWO DIFFERENT POINTS IF YOU STRUCTURE A JOB IN A WAY THAT MAKES PEOPLE WITH FAMILY OR PERSONAL CIRCUMSTANCES LITERALLY UNABLE TO TAKE IT IT ISN'T THAT THEY'RE UNWILLING BUT THAT THEY'RE UNABLE THAT'S INCONSISTENT WITH THIS POINT THAT JOBS SHOULD BE SKILLBASED THERE ARE A LOT OF THINGS COMPANIES SHOULD DO TO REEXAMINE THE WAY THEY THINK ABOUT CHOICE AS A NEUTRAL IDEA INSTEAD COMPANIES ACCEPT THE CONSEQUENCES THAT THEY THINK ARE BENIGN BECAUSE EVERYBODY HAD A CHOICE THIS IS WHERE I HAVE A PROBLEM WITH THE IDEA THAT THE ROLE OF THE COMPANY IS TO GIVE PEOPLE CHOICES THE IDEA OF CHOICE DOES NOT HAVE BENIGN CONSEQUENCES IT HAS VERY SERIOUS CONSEQUENCES THE RELOCATION EXAMPLE IS JUST AN EXTREME EXAMPLE THIS TYPE OF CHOICE IN LESSEXTREME FORM AFFECTS PEOPLE EVERY DAY IN A HUNDRED OTHER WAYS WHETHER IT'S HOW YOU ARE JUDGED IF YOU WORK LESS THAN FULL TIME OR IF YOU HAVE TO PICK UP A CHILD AT 530 PM BUT GET IN AT SIX IN THE MORNING WHEN NO ONE SEES YOU THERE ARE HUNDREDS OF EXAMPLES OF THE WAY IN WHICH THESE INDIVIDUAL CHOICES REALLY END UP SHOOTING YOU IN THE FOOT LATER FOR NO GOOD REASON WSJ LET'S TALK ABOUT CORPORATE INVOLVEMENT IN CHILD CARE MANY COMPANIES ARE COLLABORATING TO RAISE THE SUPPLY AND QUALITY OF CHILD CARE IN COMMUNITIES WHERE THEY OPERATE WHY SHOULD COMPANIES BE CONCERNED ABOUT CHILD CARE MS RODGERS NO 1 IT'S A PURELY PRACTICAL MATTER COMPANIES CAN'T GET PEOPLE TO WORK WITHOUT IT SECOND IT HAS IMPLICATIONS IN THE LONG TERM FOR THE FUTURE LABOR FORCE IF KIDS ARE REALLY GETTING A BAD START AND ARE IN LOWQUALITY CARE IT SAYS VOLUMES ABOUT WHERE OUR LABOR FORCE IS GOING TO BE IN THE FUTURE COMPANIES GET INVOLVED BECAUSE THERE IS A VACUUM IN THE COMMUNITY AND THE GOVERNMENT IN PRODUCING SERVICES WSJ DOES THIS MEAN THAT COMPANIES SHOULD START SHOULDERING CHILDCARE COSTS THAT HAVE BEEN BORNE BY INDIVIDUALS IN THE PAST MS RODGERS MY ADVICE TO COMPANIES IS ALWAYS TO APPROACH THIS IN A SPIRIT OF PARTNERSHIP NOT PATERNALISM AND NOT TO TRY TO TAKE OVER IN FACT COMPANIES RARELY DO THE CURRENT PRACTICE IS NOT FOR COMPANIES TO TAKE OVER ALL THE COSTS PARENTS SHOULD AT LEAST PAY THE MARKET RATE FOR PROGRAMS COMPANIES START THE COMPANIES' ROLE IS TO MAKE THE SERVICES MORE ATTUNED TO WORKPLACE NEEDS IF WE'RE TALKING ABOUT CHILDCARE CENTERS FOR INSTANCE COMPANIES OFTEN HAVE TO HELP PAY PART OF THE COST BECAUSE THEY OFTEN LOCATE IN PLACES WHERE THE COST OF LAND IS SO HIGH THAT IF THEY DON'T CONTRIBUTE SOMETHING THERE ARE NO SERVICES OR IF THEIR HOURS ARE AT ODDS WITH CHILDCARE SERVICES IN THE COMMUNITY THEY MAY HAVE TO PAY SOMETHING TO MAKE SERVICES AVAILABLE AT THOSE HOURS MY BASIC APPROACH IS THAT PEOPLE PAY WHAT THEY CAN AFFORD TO PAY AND COMPANIES SUPPLEMENT THAT TO MAKE THE SERVICES CONFORM TO THE BUSINESS NEEDS AS OPPOSED TO INDIVIDUAL COMMUNITY STANDARDS MR GOODWIN IF A COMPANY WANTS TO IMPROVE CHILD CARE IT PARTICIPATES IN THE COMMUNITY SO IT DOES NOT BECOME SOMETHING THAT YOU CREATE AN ENTITLEMENT FOR FOR THE BENEFIT OF EMPLOYEES LIKE WE HAVE DONE IN HEALTH CARE YOU MAY CHOOSE AT SOME TIME IN THE FUTURE NOT TO SUPPORT CHILD CARE IN THE COMMUNITY FOR WHATEVER REASON IF IT'S A BENEFIT THAT YOU'VE CREATED FOR YOUR EMPLOYEES THEN YOU CANNOT MAKE THAT CHOICE WSJ WHAT ABOUT THE ARGUMENT THAT HIGHQUALITY STABLE CORPORATE CHILD CARE RELIEVES STRESS AND HELPS THE WORKER CONCENTRATE ON THE JOB MR GOODWIN WHAT COULD BE OF HIGHER QUALITY THAN THREE PEOPLE IN THE NEIGHBORHOOD LEAVING THEIR CHILD WITH ANOTHER NEIGHBOR YOU CAN'T BEAT THAT FOR QUALITYOR ANY CHOICE I MAKE AS A PARENT DECIDING WHO MY CHILDREN STAY WITH EMPLOYEES COULD DO A BETTER JOB IF YOU GAVE THE MONEY TO THEM DIRECTLY WSJ HOW WOULD THAT WORK IN PRACTICE MR GOODWIN IF YOU'RE PAYING PEOPLE 10 AN HOUR NOW PLUS 40 FOR ALL THESE BENEFITS PAY THEM 14 AN HOUR INSTEAD AND LET THE PEOPLE DO WHAT THEY WANT WITH THE EXTRA MONEY YOU WOULD BE CONFERRING GREATER VALUE TO THE EMPLOYEE BECAUSE PEOPLE COULD SELECT ONLY WHAT THEY WANT THEY COULD GO OUT AND FIND FOR THEMSELVES IN THE MARKETPLACE THE SERVICES THEY WANT EVENTUALLY PRICES IN THE MARKETPLACE WOULD COME DOWN MS RODGERS THE IDEA OF PEOPLE GETTING TOGETHER AND PICKING A NEIGHBOR TO TAKE CARE OF THEIR CHILDREN THIS IS INDEED WHAT HALF OF THE CHILD CARE IN THIS COUNTRY IS LIKE AND COMPANIES ARE SUPPORTING EFFORTS TO ENCOURAGE INDIVIDUALS TO DO THAT COMPANY EFFORTS ARE NOT JUST FOCUSED ON BUILDING BUILDINGS COMPANIES HAVE BECOME VERY SOPHISTICATED IN UNDERSTANDING THAT BUILDING CHILDCARE CENTERS IS OFTEN NOT THE RIGHT SOLUTION AND OFTEN THE MOST EXPENSIVE THEY ARE WORKING IN THEIR COMMUNITIES TO SUPPORT OTHER FORMS OF CARE BUT AGAIN I DON'T KNOW WHAT JOHN IS TALKING ABOUT WHEN HE SAYS COMPANIES ARE TELLING PEOPLE WHAT TO DO WITH THEIR CHILDREN NO COMPANY IN AMERICA DOES THAT WITH REGARD TO GIVING PEOPLE MORE MONEY IF THAT INCLUDES GIVING PEOPLE THE COST OF THEIR TOTAL BENEFIT PACKAGE THAT WOULD PROVIDE THEM ALMOST NO MONEY FOR DEPENDENT CARE THE CURRENT BENEFIT PACKAGE INCLUDES ALMOST NO MONEY FOR DEPENDENT CARE IT IS ALMOST ENTIRELY FOR HEALTH CARE RETIREMENT AND VACATIONS THAT APPROACH WOULDN'T DO ANYTHING FOR WHAT WE'RE DISCUSSING IF WHAT JOHN IS PROPOSING IS TO PAY PEOPLE EVEN MORE THAN THE COST OF THEIR TOTAL CURRENT BENEFIT PACKAGE TO GO OUT AND GET CHILD CARE THERE ARE COMPANIES THAT DO THAT AND IT IS VERY HELPFUL BUT IT'S A VERY EXPENSIVE AND INEFFICIENT SOLUTION FIRST IT RESULTS IN AN ESCALATION OF SALARIES WHICH IS AN EVEN LESS CONTAINABLE KIND OF SPENDING THAN THE ESCALATION OF BENEFITS SECOND IT FAILS TO LEVERAGE COMPANY RESOURCES IN THE COMMUNITIES WHERE THEY OPERATE IT PUTS EVERY INDIVIDUAL EMPLOYEE OUT THERE ON THEIR OWN THIS DOESN'T WORK BECAUSE THE ECONOMICS OF CHILD CARE ARE SUCH THAT YOU NEED CAPITAL INVESTMENT THERE IS NO EQUILIBRIUM WHERE THE MARKET RESPONDS TO DEMAND FOR CHILD CARE BY PROVIDING THE QUALITY PEOPLE WANT AND THIRD COMPANIES WOULD HAVE TO MAKE A BUSINESS CASE FOR THAT ADDED SPENDING JUST AS THEY JUSTIFY THE BUSINESS CASE FOR WHAT THEY'RE DOING NOW WSJ WHAT ARE THE RISKS IF EMPLOYEES BEGIN TO THINK THEY ARE ENTITLED TO CHILDCARE ASSISTANCE FROM THEIR EMPLOYER MR GOODWIN IF PEOPLE HAVE THEIR OWN COOP CHILDCARE SERVICE THAT THEY FUND AND OPERATE THEMSELVES THE QUALITY IS GOING TO BE MUCH BETTER THAN SOMETHING THAT IS PROVIDED FOR THEM AND THAT THEY BEGIN TO TAKE FOR GRANTED I'D RATHER LET THEM DO IT THEMSELVES MS RODGERS YOU WANT WORKING PARENTS WHO EACH WORK THE EQUIVALENT OF TWO FULLTIME JOBS AT WORK AND AT HOME TO CREATE THEIR OWN INSTITUTIONS TO SUPPORT THE LABOR FORCE IN WHAT HOURS OF THE DAY WILL THEY DO THIS MR GOODWIN WE'RE JUST TALKING ABOUT GIVING PEOPLE TIME TO MAKE THEIR OWN CONTACTS IN THE COMMUNITY AND THE NEIGHBORHOOD INSTEAD OF TRYING TO CONTROL ALL OF THAT SO THAT PEOPLE DON'T DO IT FOR THEMSELVES YOU GIVE THEM FLEXTIME OR TIME OFF IF THEY NEED IT I THINK THAT APPROACH WOULD BE MUCH MORE EFFECTIVE AND MORE BENEFICIAL AND BETTER FOR THEIR CHILDREN WSJ WHAT IF ADEQUATE CHILD CARE JUST ISN'T AVAILABLE MR GOODWIN THEY'LL FIND A WAY TO USE A SHORTAGE OF CHILD CARE AS A JUSTIFICATION FOR BUSINESS TO BE INVOLVED IS TO IGNORE THE FACT THAT PARENTS ARE THE ONES WHO ARE RESPONSIBLE THAT'S NOT A HELPING ATTITUDE THAT'S A HURTING ATTITUDE MS RODGERS IN SHAPING EXPECTATIONS IT'S ALL IN THE COMMUNICATION AND THE WAY IT'S FRAMED ANY COMPANY THAT SAYS TO EMPLOYEES I CAN SOLVE ALL YOUR FAMILY ISSUES IS LYING AND IS MAKING A VERY FOOLHARDY STATEMENT I THINK THE IMPORTANT MESSAGE THAT EMPLOYEES YEARN TO HEAR IS AN ACKNOWLEDGEMENT THAT THEY EXIST BEYOND THE WORKPLACE THAT LIFE IS CHANGING THAT THERE ARE CONSTRAINTS AND THAT THEIR SUPPORTS NEED TO CHANGE ALONG WITH IT AND THEY HOPE FOR SOME RECOGNITION OF THESE CHANGES BY THEIR EMPLOYER AND AN INDICATION THAT THEY'RE GOING TO MEET THEM HALFWAY AND TRY TO UNDERSTAND THEM AND WORK WITH THEM OVER TIME MR GOODWIN WE CREATE THE EXPECTATIONS WHEN YOU BEGIN TO PROVIDE THE SERVICE REGARDLESS OF HOW YOU COMMUNICATE IT THE EXPECTATION THAT IT IS OWED TO ME ENTERS IN AND BECOMES THE CONTROLLING FACTOR MS RODGERS I HAVE TROUBLE WITH THAT KNOWING AS I DO THE INCREDIBLE HEROIC EFFORTS PEOPLE MAKE TO WORK AND CARE FOR THEIR KIDS ESPECIALLY BUT THE REST OF THEIR FAMILIES TOO I HEAR YOU SAYING RATHER THAN GET INVOLVED IN SOMETHING MESSY I'D RATHER PUT MY HEAD IN THE SAND WE ALL KNOW FROM THE HEALTHCARE EXAMPLE THAT ONCE WE START WE CAN GET OURSELVES INTO A MESS I DON'T DISAGREE BUT IS THE IMPLICATION THAT WE DO NOTHING AND NEVER START OR IS THE IMPLICATION THAT WE LEARN FROM THE PAST AND WE DO IT SMARTER THIS TIME WSJ WHAT ARE THE LESSONS TO BE LEARNED FROM THE HEALTHCARE EXAMPLE MS RODGERS FIRST PREVENTION AND SOLVING PROBLEMS VERY EARLY IN A POSITIVE PROACTIVE WAY IS A WHOLE LOT CHEAPER THAN TREATMENT LATER IF WE SUPPORT FAMILIES AND THE CHANGING WORKPLACE NOW WE WILL AVOID A LOT OF EXPENSIVE FALLOUT LATER IF EMPLOYEES' DEPENDENTCARE PROBLEMS AREN'T ADDRESSED THEY BLAME THEMSELVES THEN THEY START TO NEED HELP THEMSELVES PERHAPS IN THE FORM OF MORE HEALTH CARE SECOND BUSINESS HISTORICALLY HAS BEEN SO AFRAID OF MANDATES THAT THEY HAVE AVOIDED HAVING ANY VOICE IN THESE ISSUES INSTEAD OF SAYING THERE SHOULD BE NO REGULATION AND NO LEGISLATIVE MANDATES AT ALL BUSINESS SHOULD SAY THIS IS AN ISSUE ON WHICH WE NEED TO HAVE A PARTNERSHIP WITH GOVERNMENT AND THIS IS WHAT WE THINK GOVERNMENT'S ROLE SHOULD BE IF THEY DON'T DO THAT THEY'RE SETTING THEMSELVES UP FOR GREATER INTERVENTION THIRD DEPENDENTCARE ISSUES HAVE SOME OF THE SAME PROBLEMS AS HEALTH CARE IN THAT THEY LACK UNIVERSALITY WE HAVE A HODGEPODGE OF DIFFERENT FUNDING STREAMS AND WHOLE CLASSES OF PEOPLE WHO ARE BEING LEFT OUT WE ARE GOING TO END UP WITH HAVES AND HAVE NOTS AND A MESSEDUP SYSTEM IF WE ALLOW THAT TO HAPPEN WE MAY END UP WITH MANY OF THE SAME PROBLEMS THE HEALTHCARE SYSTEM HAS NOW MR GOODWIN DIRECT INVOLVEMENT IN THE FAMILY LIFE OF YOUR EMPLOYEES IS NOT GOOD FOR YOUR BUSINESS AND IT'S WRONG FOR THEM IT'S WRONG AS A SOCIALLY RESPONSIBLE INDIVIDUAL JUST BECAUSE YOU HAPPEN TO MANAGE A COMPANY TO BE INVOLVED YOU CAN'T SUBSTITUTE THE COMPANY FOR ITS EMPLOYEES IN THESE ISSUES AND THAT'S WHAT TOO MANY PEOPLE ARE TRYING TO DO WSJ DO WORKFAMILY PROGRAMS RUN THE RISK OF BEING UNFAIR TO PEOPLE WHO HAVE NO CHILDREN OR OTHER FAMILY RESPONSIBILITIES MR GOODWIN YES THE FAIR WAY TO RUN A BUSINESS IS TO PAY A GOOD SALARY AND GIVE PEOPLE A SECURE WORKPLACE SO THEY IN TURN CAN TAKE CARE OF THEIR OWN NEEDS THAT'S THE ULTIMATE IN FAIRNESS ONCE YOU START PLAYING AROUND WITH THAT YOU START BEING UNFAIR ALL YOU ACCOMPLISH BY PUTTING A LOT OF POLICIES ON THE BOOKS IS TO JUSTIFY NEGATIVE DECISIONS IT BINDS MANAGERS' HANDS A POLICY MAY MEAN SOMEBODY WHO DOESN'T NEED SOMETHING GETS IT AND TAKES ADVANTAGE OF THE POLICY WHILE SOMEBODY WHO DOES NEED IT IS TOLD NO BECAUSE THEY HAVE A UNIQUE SITUATION THAT WASN'T COVERED IN THE RULES AND THE LAST THING A MANAGER WANTS TO DO IS TO MAKE AN EXCEPTION TO A POLICY FOR EXAMPLE ASSUME I'M A MANAGER AT A COMPANY THAT HAS A WRITTEN POLICY ALLOWING FLEXTIME FOR FAMILY REASONS ON THE BOOKS I MAY HAVE AN EMPLOYEE WHO NEEDS FIVE MONTHS BUT THE POLICY ONLY ALLOWS FOUR OR IT MAY BE A PERSON WHO NEEDS TIME OFF TO CARE FOR AN INLAW OR AN AUNT WHO RAISED THEM FROM THE TIME THEY WERE TWO YEARS OLD BUT MY POLICY MAY NOT COVER THAT KIND OF RELATIONSHIP AND EVERY TIME I MAKE AN EXCEPTION TO THE POLICY I RAISE THE POSSIBILITY OF A LAWSUIT OR A CHARGE OF DISCRIMINATION UNFORTUNATELY IN THE US YOU CAN'T BE FAIR ANY MORE WITHOUT BEING ILLEGAL THERE ARE SO MANY REGULATIONS ON DISCRIMINATION THAT IT TAKES FAIRNESS OUT OF THE DECISIONMAKING AND REPLACES IT WITH EQUALITY MS RODGERS I HAVE THREE POINTS ON THAT QUESTION FIRST THERE HAS NOT BEEN A GREAT DEAL OF BACKLASH AGAINST THESE PROGRAMS I DON'T SEE COWORKERS THINKING THAT WOMEN WITH CHILDREN FOR EXAMPLE ARE GETTING SUCH A GREAT DEAL PEOPLE HAVE A CERTAIN AMOUNT OF EMPATHY FOR WHAT THEY SEE NEXT DOOR SECOND THIS ISSUE OF SINGLE PEOPLE AND WHETHER WORKFAMILY PROGRAMS ARE UNFAIR IS CRITICAL WHEN WE TALK ABOUT ADJUSTING THE WORKPLACE TO MEET FAMILY NEEDS I DON'T THINK WE'RE TALKING ABOUT A FAVOR OR A BENEFIT WE'RE TALKING ABOUT WHAT IT'S GOING TO TAKE TO DO BUSINESS AND TO GET THE MOST OUT OF A NEW POPULATION OF PEOPLE WHEN SOMEBODY NEEDS FLEXIBILITY FOR EXAMPLE AND WORKS 80 OF THE TIME FOR 60 OF SALARY AND DOES THE SAME FULLTIME JOBWHICH IS VERY COMMON I DON'T SEE THAT YOU'VE DONE THIS PERSON A FAVOR I DON'T SEE THAT THERE'S BEEN ANY TERRIBLE NEGATIVE BUSINESS CONSEQUENCE PEOPLE WHO HAVE GOTTEN FLEXIBILITY OFTEN HAVE HAD TO PAY SUCH A HIGH PRICE FOR IT THAT OTHERS HAVE LITTLE WISH TO CHANGE PLACES SO BY AND LARGE WHAT IS THERE TO RESENT HERE IF A COMPANY TREATS THIS AS THOUGH THEY'RE DOING THESE INCREDIBLE FAVORS FOR PEOPLE OR AS IF IT'S A DIRTY LITTLE SECRET THEN OF COURSE THEY WILL CREATE RESENTMENT THEY'RE SENDING A MESSAGE THAT WILL CREATE SOME ANTAGONISM BUT IF A COMPANY APPROACHES THIS AS A WAY OF DOING BUSINESS AND AS A CORRECTION OF A SYSTEM THAT CURRENTLY FAVORS OTHER GROUPS I DON'T THINK THEY'RE GOING TO ENCOURAGE THIS RESENTMENT OF ONE GROUP AGAINST THE OTHER ALSO JOHN YOUR ATTITUDE ABOUT WORK AND FAMILY I BELIEVE IS THAT IT INVOLVES SPENDING MONEY IN AN AREA WHERE YOU REALLY DON'T GET PRODUCTIVITY GAINS MR GOODWIN NOT JUST WORKFAMILY BUT ALL BENEFITS I'M NOT ARGUING THAT YOU SHOULDN'T SPEND MONEY ON YOUR EMPLOYEES BUT THAT IT CAN BE BETTER SPENT BY THE EMPLOYEE BENEFITS DON'T INCREASE PRODUCTIVITY LET THE EMPLOYEE HAVE THE MONEY AND THEY'LL SPEND IT BETTER AND BE HAPPIER AS A RESULT MS RODGERS OK BUT IF I DEFINE WORKFAMILY ISSUES NOT AS BENEFITS BUT AS A WAY OF DOING BUSINESS AND ALLOWING PEOPLE TO GET TO WORK AND BE PRODUCTIVE THEN THIS IS NOT A GIVEAWAY TO PEOPLE I'M THINKING ABOUT THIS AS MUCH FOR THE COMPANY AS FOR THE EMPLOYEE AT MY COMPANY WE HELP SOME 110000 PEOPLE A YEAR BY HELPING THEM FIND FAMILY CARE EFFICIENTLY IN THEIR COMMUNITIES IF YOU CALCULATE CONSERVATIVELY WHAT YOU SAVE BY HELPING PEOPLE YOU GET A 3TO1 PAYBACK AND THAT'S CONSERVATIVE BECAUSE IT ONLY ACCOUNTS FOR TIME SAVED AT WORK IT DOESN'T EVEN ACCOUNT FOR THE ADDITIONAL BENEFITS IN SUCH AREAS AS LESS STRESS HIGHER RETENTION AND THE AVOIDANCE OF PROBLEMS DOWN THE ROAD ALSO THAT ONLY MEASURES RESULTS FROM RESOURCE AND REFERRAL NOT FROM SUCH THINGS AS INVESTING WISELY IN MAKING MORE COMMUNITY RESOURCES AVAILABLE HELPING PEOPLE WITH SCHOOLRELATED ISSUES AND MANAGEMENT TRAINING TO CHANGE MANAGERS' STYLES MR GOODWIN IF FRAN CAN MAKE PEOPLE STOP WORRYING SHE'S A MIRACLE WORKER IT'S NICE TO BE ABLE TO CITE RATIOS LIKE THAT BUT I'M SKEPTICAL THAT PEOPLE ARE ACTUALLY SAVING THAT MUCH TIME I WONDER WHETHER PEOPLE COULD SOLVE SOME OF THESE SAME PROBLEMS IN HALF THE TIME IF THEY TOOK OWNERSHIP TOOK RESPONSIBILITY FOR THEIR PROBLEMS MS RODGERS PEOPLE CAN'T START FROM SCRATCH AND CREATE EVERYTHING AROUND THEM WE ARE TALKING ABOUT BASIC INFRASTRUCTURE THIS IS NO DIFFERENT THAN ROADS AND BRIDGES AFTER HURRICANE ANDREW AND HURRICANE HUGO PEOPLE HAD TO GET THE CHILD CARE FIXED BEFORE THEY COULD FIX PEOPLE'S POWER BEFORE WORKERS COULD FIX PEOPLE'S POWER IF THERE ARE NOT ENOUGH SERVICES TO SUPPORT WORK AND FAMILY IN A SOCIETY THAT DEPENDS ON WOMEN'S WORK AND DEPENDS ON WORKING FAMILIES SOMETHING IS GOING TO GIVE AND WHAT'S GIVING IS PRODUCTIVITY IN THE WORKPLACE AND FAMILY LIFE AND THOSE ARE THINGS THAT WE DEPEND ON THEY ARE THE VERY THINGS THAT MAKE OUR COUNTRY STRONG I DON'T THINK BUSINESSES SHOULD DO EVERYTHING BUT PEOPLE DO EXPECT THAT BUSINESSES CAN DO MORE THAN THEY DO MR GOODWIN EMPLOYERS STILL ARE CITIZENS AND HAVE RESPONSIBILITY TO THE COMMUNITY AS CITIZENS BUT EVERYTHING THAT HAS BEEN DONE EXTREMELY WELL IN THIS COUNTRY HAS BEEN DONE BY INDIVIDUAL INCENTIVE THE BEST INTERSTATE HIGHWAYS IN THIS COUNTRY ARE THE TOLL ROADS PAID FOR BY THE PEOPLE WHO WANT THEM THE TOLL BRIDGES AREN'T COLLAPSING IT'S JUST THOSE FREE BRIDGES I THINK THAT'S A BEAUTIFUL ANALOGY IF YOU WANT IT YOU'LL GO GET IT AND YOU'LL DO IT RIGHT IF YOU GIVE PEOPLE WHO NEED CHILD CARE THE OPPORTUNITY THEY WILL FIND OR CREATE AN ADEQUATE CHILDCARE FACILITY ANOTHER EXAMPLE IS CAR POOLING PEOPLE HAVE A NEED TO GET TO WORK AND A GROUP OF THEM GET TOGETHER WITHOUT ANY SUPPORT FROM THE COMPANY WHATSOEVER AND THEY CREATE A CAR POOL AND A VERY EFFECTIVE ONE THAT WORKS MS RODGERS I'M NOT AWARE OF ANY COMPANY THAT STARTS PROGRAMS WITHOUT HAVING FIGURED OUT WHAT THEIR EMPLOYEES SAY THEY CAN'T DO THEMSELVES AND NEED HELP ON AND I'M NOT AWARE OF ANY PERCEPTION THAT BUSINESS IS TAKING OVER THE FAMILY OR INTRUDING ON IT THE HISTORY IS THAT PEOPLE HAVE TRIED TO DO THESE THINGS ON THEIR OWN AND HAVE FOUND IT INCREDIBLY CUMBERSOME INCREDIBLY DIFFICULT INCREDIBLY TIMECONSUMING AND AN IMPEDIMENT TO THEIR DOING THEIR JOB WELL 9306210028 930621 THE ILLITERACY OF CLINTONOMICS BY MICHAEL BOSKIN THE WHITE HOUSE SEEMS TO BELIEVE THAT PRESIDENT CLINTON'S PROBLEMS ARE THE RESULT OF COMMUNICATION FOULUPS INADEQUATE FOCUS ON HIS ECONOMIC PROGRAM AND THE MEDIA'S FASCINATION WITH HAIRCUTS HOLLYWOOD TRAVEL SCANDALS AND EXTREMIST NOMINATIONS I BELIEVE THAT THE PRESIDENT AND HIS ADMINISTRATION ARE SUFFERING FROM A MUCH DEEPER SYSTEMIC PROBLEM ECONOMIC ILLITERACY TO BE SURE EVERY PRESIDENT HAS UTTERED ILLITERATE REMARKS ON THE ECONOMY GEORGE BUSH'S AFTERDINNER COMMENT THAT CREDITCARD INTEREST RATES HAD NOT FALLEN WITH OTHER RATES LED THE SENATE TO PASS A RATE CAP THIS FOOLISH ANTIMARKET NOTION WOULD HAVE BANKRUPTED MANY MAJOR RETAILERS BUT FORTUNATELY AFTER MUCH EMBARRASSMENT TO THE PRESIDENT THE RATE CAP WAS SQUELCHED SOMETIMES WE END UP WITH HARMLESS NONSENSE SUCH AS GERALD FORD'S WHIP INFLATION NOW WIN BUTTONS ON OTHER OCCASIONS ECONOMIC ILLITERACY HAS GIVEN THE PREVAILING POLITICAL WINDS PRODUCED POLICIES THAT GREATLY DAMAGED THE ECONOMY AND ULTIMATELY THE PRESIDENT RICHARD NIXON'S WAGE AND PRICE CONTROLS AND JIMMY CARTER'S ENERGY REGULATION ARE TWO OBVIOUS EXAMPLES PROBABLY THE MOST ILLITERATE ECONOMIC STATEMENT EVER MADE BY A PRESIDENT WAS MR CARTER'S LATE 1978 NATIONAL TV PLEA TO THE FED TO LOWER INTEREST RATES TO FIGHT IMPENDING DOUBLEDIGIT INFLATION WHAT IS MOST DEEPLY DISTURBING ABOUT THE CLINTON ADMINISTRATION IS THAT A FUNDAMENTAL DISTRUST OF FREE ENTERPRISE PERMEATES ITS POLICIES AND PUBLIC PRONOUNCEMENTS I RAISE THIS ISSUE NOT TO EMBARRASS THE PRESIDENT BUT IN THE HOPE HE WILL GET ON A SENSIBLE COURSE WHILE HE STILL HAS TIME CONSIDER THE RECORD OF ONLY THE FIRST FEW MONTHS OF THIS ADMINISTRATION FIRST THE PRESIDENT CLAIMED HE PRESENTED THE FIRST HONEST BUDGET IN MANY YEARS IT WAS TO REDUCE THE BUDGET DEFICIT 500 BILLION OVER FOUR YEARS BUT MR CLINTON WAS THE FIRST PRESIDENT EVER TO USE GROSS RATHER THAN NET NUMBERS FOR HIS BUDGET PRESENTATION THE 500 BILLION CLAIMED IN DEFICIT REDUCTION DID NOT SUBTRACT OUT THE 170 BILLION OF NEW SPENDING CALLED INVESTMENT AND TAX CUTS THE PRESIDENT WAS PROPOSING WORSE YET THE CONGRESSIONAL BUDGET OFFICE ESTIMATED THAT THE PRESIDENT'S SPENDING PROPOSALS EXCEEDED THE LIMITS IN THE BUDGET LAW BY MORE THAN 60 BILLION THE CONGRESSIONAL BUDGET COMMITTEES HAD TO INCLUDE UNSPECIFIED ADDITIONAL SPENDING CUTS TO MAKE UP THE DIFFERENCE THE PRESIDENT ALSO SAID THERE WAS 1 OF SPENDING CUTS FOR EVERY 1 OF TAX INCREASES THIS POSITION CAME AFTER BACKING OFF AN ORIGINAL PLEDGE OF 2 FOR 1 THE 11 POSITION WAS ACCOMPLISHED BY CALLING LOTS OF TAX INCREASES OUTLAY REDUCTIONS AND LARGE ENTITLEMENT INCREASES TAX CUTS COUNTING MORE THAN 60 BILLION OF SPENDING CUTS THAT WERE ALREADY REQUIRED BY LAW AND CLAIMING SAVINGS FROM UNSPECIFIED ADMINISTRATIVE AND MANAGERIAL REFORMS AND HOPEDFOR INTEREST SAVINGS FROM A TWIST ON THE MATURITY COMPOSITION OF THE NATIONAL DEBT THAT WILL BACKFIRE IF SHORTTERM INTEREST RATES RISE AN HONEST ACCOUNTING SHOWED 6 OF TAX INCREASES FOR EVERY 1 OF SPENDING CUTS IN THE ORIGINAL CLINTON PROGRAM CONTRARY TO THE PRESIDENT'S CLAIMS THAT HIS PROGRAM WILL SPUR GROWTH AND CREATE JOBS THERE IS NOTHING TO HELP THE ECONOMY GROW NO REAL ATTEMPTS TO REMOVE THE TAX BARRIERS TO SAVING INVESTMENT AND ENTREPRENEURSHIP NOTHING TO IMPROVE THE INCENTIVE TO START OR EXPAND A BUSINESS AND CREATE JOBS IN FACT HIS PROPOSAL DOES THE OPPOSITE FOR EXAMPLE A SIZABLE FRACTION OF THE HIGHERINCOME TAXES ARE TAXES ON SMALL BUSINESS PROFITS EIGHTY PERCENT OF AMERICAN BUSINESSES ARE NOT INCORPORATED AND PAY TAXES ON THE SAME 1040 FORM YOU AND I USE THE LARGE INCREASE IN TAX RATES ON SMALL BUSINESSES WILL REDUCE THEIR AFTERTAX PROFITS A PRIMARY SOURCE OF FUNDS FOR BUSINESS EXPANSION IN THE SECTOR OF THE ECONOMY THAT CREATES MOST JOBS EVEN WITH THE MARGINAL IMPROVEMENTS BEING MADE IN CONGRESS THE TAX INCREASES WILL STILL GREATLY EXCEED THE SPENDING CUTS INCREASE SHELTERING AND RETARD GROWTH EVEN MORE SO IF SEN BILL BRADLEY'S CAPITALGAINS TAX SURCHARGE IN THE SENATE FINANCE COMMITTEE BILL BECOMES LAW THE NEW SPENDING PROGRAMS WILL GROW MORE THAN PROJECTED REVENUE GROWTH WILL BE DISAPPOINTING THE ECONOMY WILL SLOW AND THE PROGRAM WILL REDUCE THE DEFICIT MUCH LESS THAN EXPECTED NEXT FROM MONTHS OF LEAKS IT APPEARS THAT THE HEALTHCARE REFORM PROPOSALS WILL BE A SORT OF NATIONAL HEALTH INSURANCE IN DRAG COMBINED WITH A MASSIVE DISGUISED REDISTRIBUTIVE TAX THE GOVERNMENT PRESCRIBES A STANDARD COMPREHENSIVE PLAN VOTERS WILL BE TOLD THAT THEY ARE NOT PAYING TAXES JUST PREMIUMS TO HEALTH ALLIANCES THE TAXES WILL BE ON EMPLOYERS A RECENT LEAK SUGGESTED A 12 PAYROLL TAX EVEN THOUGH THIS MEANS THAT WAGES AND EMPLOYMENT WILL DECLINE AS EMPLOYERS FOOT THE BILL FOR HEALTH INSURANCE CURRENTLY THE DOLLAR AMOUNT OF HEALTH INSURANCE FOR MOST AMERICANS IS DEDUCTED FROM PAY DIRECTLY OR INDIRECTLY THROUGH LOWER WAGES A GROWING NUMBER CHOOSE AMONG PLANS BASED ON COST AND SERVICES A TAX THAT IS A PERCENTAGE OF WAGES DESTROYS ANY LINK BETWEEN INDIVIDUAL HEALTHCARE CHOICES AND COST AND DISGUISES THE REDISTRIBUTION OF INCOME PRICE CONTROLS WILL BE VOLUNTARY ALTHOUGH THERE WILL BE A BACKUP FEDERAL SYSTEM THE FEDERAL GOVERNMENT WILL SET GLOBAL BUDGETS BUT THEY WILL BE ENFORCED BY THE STATES WHAT DOES THAT MEAN THE AMOUNT YOU SPEND ON SOMETHING IS THE PRICE TIMES THE QUANTITY ADJUSTED FOR QUALITY THAT MEANS EITHER PRICE CONTROLS RATIONING OR A DECREASE IN QUALITY EG SLOWER RATES OF INNOVATION IN EVERYTHING FROM NEW LIFESAVING DRUGS TO DETECTION TECHNOLOGY CLAIMS THAT THE COSTS WILL BE KEPT DOWN BY PHASING THE PLAN IN ARE ERRONEOUS THAT WILL JUST DISGUISE THE EVENTUAL COST THE RADICAL RESTRUCTURING IS OVERKILL FAR BEYOND WHAT IS NECESSARY TO DEAL WITH THE PROBLEMS OF ACCESS AND COST FINALLY LET US CONSIDER THE REMARKABLE SEQUENCE OF ILLITERATE MICROECONOMIC PRONOUNCEMENTS AND POLICIES EMANATING FROM THE ADMINISTRATION FIRST CAME THE LAMBASTING OF THE PHARMACEUTICAL COMPANIES ATTACKED FOR HIGH PRICES ON THEIR FEW SUCCESSFUL DRUGS NEXT UP WERE THE HEALTH INSURANCE COMPANIES THEN CAME THE ENERGY COMPANIES THEN SOMEONE DISCOVERED THAT BANKS WERE MAKING PROFITS GOD FORBID ON STUDENT LOANS ONE OF THE CLINTONITES' FEW SPENDING CUTS IS NATIONALIZING THE STUDENT LOAN PROGRAM IN THE EDUCATION DEPARTMENT ALLEGEDLY SAVING 4 BILLION DOES ANYBODY REALLY STILL BELIEVE THAT THE PROGRAM CAN BE RUN MORE EFFECTIVELY BY A LARGE GOVERNMENT BUREAUCRACY THAN BY THE PRIVATE SECTOR THEN CAME THE FIRST LADY'S FAMOUS PRONOUNCEMENTS TOO MUCH PROFITEERING PRICE GOUGING AND TOO MANY PEOPLE ARE MAKING TOO MUCH MONEY IN HEALTH CARE THE PROSPECT OF PRICE CONTROLS AND THESE POPULIST CHARGES SURELY ARE NOT GOING TO GET HOSPITALS TO HIRE NEW WORKERS BESIDES WHAT LAWS DID ANY OF THESE INDUSTRIES VIOLATE WERE THE PRICES RIGGED IF SO WHERE IS THE ANTITRUST ENFORCEMENT WORSE YET WHO'S NEXT MY AWARD FOR THE MOST ILLITERATE STATEMENT GOES TO THE VICE PRESIDENT'S RIDICULOUS CLAIM THAT A RADICAL EXPANSION OF ENVIRONMENTAL REGULATION WILL ACTUALLY HELP THE ECONOMY THE MOST DANGEROUS STATEMENTS ARE THOSE FAVORING MANAGED TRADE AND TARGETS THEREBY SANCTIONING CARTELS UNDERMINING THE GENERAL AGREEMENT ON TARIFFS AND TRADE AND RISKING THE TRADE LIBERALIZATION THAT IS THE WORLD'S BEST HOPE FOR STRONGER ECONOMIC GROWTH THE ADMINISTRATION'S RHETORIC ABOUT THE PRIVATE SECTOR REMINDS ME OF MY CONVERSATIONS WITH THE THENSOVIETS AND EAST EUROPEANS IN 1989 THEY HAD LEARNED THE VOCABULARY OF PRIVATE MARKETS BUT THEY HAD NO CONCEPTUAL BASIS AND LITTLE EXPERIENCE TO UNDERSTAND WHAT IT MEANT OBVIOUSLY THE CLINTONITES ARE BETTER INFORMED THAN THAT BUT IT APPEARS THAT WE ARE IN FOR A PERIOD OF UNPRECEDENTED ANTIMARKET GOVERNMENT ACTIVITY AT A TIME WHEN VIRTUALLY EVERYWHERE COUNTRIES ARE RELYING LESS ON GOVERNMENT AND MORE ON PRIVATE INITIATIVE AND MARKETS THE PRESIDENT NEEDS HIS POLICIES AND PRONOUNCEMENTS TO BE BASED ON A COHERENT CONCEPTUAL FRAMEWORK THAT IS RELEVANT TO LATE 20THCENTURY MARKET ECONOMICS OR THE WORLD ECONOMIC COMMUNITY WILL LOSE EVEN MORE CONFIDENCE IN AMERICAN LEADERSHIP AND MR CLINTON WILL FAIL TO ACCOMPLISH HIS LAUDABLE OBJECTIVE OF ENHANCING ECONOMIC GROWTH MR BOSKIN A VISITING SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE WAS CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS IN THE BUSH ADMINISTRATION 9306210027 930621 INTERNATIONAL PRIVATIZATIONS IN ITALY ARE SET TO BE EXPANDED CHIEF OF HOLDING FIRM IRI VOWS POLITICS WON'T INTERFERE WITH AUCTIONS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL ROME ROMANO PRODI THE NEW CHAIRMAN OF IRI SPA SAID HE HAS BEEN GIVEN CARTE BLANCHE BY PRIME MINISTER CARLO CIAMPI TO SELL OFF ALL OF THE HOLDING COMPANY ITALY'S LARGEST EMPLOYER REVERSING 60 YEARS OF GOVERNMENT INTERVENTION IN THE COUNTRY'S DEBTLADEN ECONOMY THERE ARE NO MORE CROWN JEWELS THAT YOU CANNOT SELL THE 53YEAROLD EXECUTIVE SAID IN HIS FIRST NTERVIEW SINCE RETURNING TO IRI AS CHAIRMAN LAST MONTH HE HELD THE SAME POST FROM 1982 TO 1989 IN THE OLD DAYS IT WAS OK TO SELL PIECES BUT NOW THE BILATERAL RELATIONSHIP BETWEEN GOVERNMENT AND INDUSTRY IN ITALY IS OVER IN CONTRAST TO THE FORMER GOVERNMENT'S STALLED PRIVATIZATION PLAN IRI WILL BE FLEXIBLE AND EVERYTHING WILL GO ON THE BLOCK ACCORDING TO ITS MARKET ATTRACTIVENESS MR PRODI SAID THE PREVIOUS PLAN CALLED FOR A SPECIFIC ORDER OF SALES REGARDLESS OF MARKET NEEDS THE FIRST BUSINESS SET FOR PRIVATIZATION FOOD CONGLOMERATE SME SPA IS PROCEEDING BUT IRI'S SECOND TARGET STATE BANK CREDITO ITALIANO HASN'T FOUND A BUYER AFTER SIX MONTHS THE OLD PLAN ALSO PINPOINTED SOME SECTORS SUCH AS TELECOMMUNICATIONS AS STRATEGIC SECTORS IN WHICH THE GOVERNMENT WOULD RETAIN AT LEAST A MINORITY CONTROLLING STAKE I DON'T SEE ANY DIFFICULTY WITH SELLING PUBLIC UTILITIES NOW MR PRODI SAID ALLUDING TO IRI'S OWNERSHIP OF PROFITABLE TELECOMMUNICATIONS UMBRELLA COMPANY STET SPA MY ONLY LIMIT THUS FAR IS TO FIND SOUND BUYERS WHEN ASKED WHETHER STET WOULD BE NEXT ON THE BLOCK MR PRODI SAID THIS SECTOR IS GOING WELL AT THIS MOMENT HE SAID TALKS ARE PROCEEDING TO SELL A LARGE STAKE IN STATE TELECOMMUNICATIONS MAKER ITALTEL IN WHICH AMERICAN TELEPHONE & TELEGRAPH CO OWNS A 20 STAKE HE WOULDN'T COMMENT ON RUMORS THAT BOTH GERMANY'S SIEMENS AG AND AT&T ARE CLOSE TO A DEAL WE ARE DEALING HE SAID WITH 1992 REVENUE OF 833 TRILLION LIRE 553 BILLION OR 5 OF ITALY'S GROSS NATIONAL PRODUCT IRI'S INTERESTS RANGE FROM AIRLINES TELECOMMUNICATIONS AND STEEL TO BANKING SHIPYARDS AND SUPERMARKETS BUT LAST YEAR IT POSTED A LOSS OF 47 TRILLION LIRE AND NET DEBTS BALLOONED TO A STAGGERING 74 TRILLION LIRE ALTHOUGH THE PREVIOUS GOVERNMENT SET AN ESTIMATED PRICE TAG OF 24 TRILLION LIRE THROUGH PRIVATIZATION MR PRODI SAID HE CAN'T MAKE A SIMILAR ESTIMATE YET AGAINST A BACKDROP OF POLITICAL UNCERTAINTY RECESSION AND CORRUPTION SCANDALS MR PRODI ADMITS HIS AMBITIOUS PLAN WILL BE WAGED AGAINST FORMIDABLE ODDS HE WILL FACE CREDIBILITY PROBLEMS WITH FOREIGN INVESTORS AS ITALIAN STATE INDUSTRY STRUGGLES TO POLISH ITS TARNISHED IMAGE MR PRODI'S PREDECESSOR FRANCO NOBILI HAS BEEN IN MILAN'S SAN VITTORE PRISON SINCE MAY ON CHARGES OF CORRUPTION IRI WHOSE FORMAL NAME IS ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE ALSO WILL BE COMPETING FOR BUYERS AGAINST THE FRENCH GOVERNMENT AND ITALIAN PRIVATE INDUSTRY WHICH ALSO PLAN MASSIVE ASSET DISPOSALS LARGE IRI SUBSIDIARIESINCLUDING ITS ILVA STEEL DIVISION AND IRITECNA CONSTRUCTION GROUPMUST FIRST BE RESTRUCTURED AND RETURNED TO PROFITABILITY BEFORE THE POSSIBILITY OF SELLING THEM IS FEASIBLE UNTIL NOW EFFORTS TO PRIVATIZE IRI AS WELL AS OTHER STATE GROUPS HAVE BEEN HALFHEARTED AT BEST AS DEBT PILED UP IN THE 1980S POLITICIANS ALLOWED SOME SMALL PRIVATIZATIONS BUT PREFERRED SELLING MINORITY STAKES IN SELECT SUBSIDIARIES TO RAISE CASH BUT RETAIN CONTROL OF A KEY SOURCE OF POLITICAL PATRONAGE THE REAPPOINTMENT OF MR PRODI WHO WAS A STRONG IF FRUSTRATED PROPONENT OF PRIVATIZATION AS IRI'S CHAIRMAN IN THE 1980S SHOWS PRIME MINISTER CIAMPI'S COMMITMENT TO THE SELLOFF PLAN DURING HIS PREVIOUS TENURE MR PRODI RETURNED IRI TO PROFITABILITY AFTER 13 CONSECUTIVE YEARS OF LOSSES HE BEGAN THE GROUP'S PRIVATIZATION EFFORTS SELLING ALFA ROMEO TO FIAT SPA IN 1987 AND PRIVATIZING MERCHANT BANK MEDIOBANCA IN 1988 AND 1989 BUT HE LEFT IN 1989 IN A TUSSLE WITH POLITICAL FORCES OVER HIS PRIVATIZATION PLANS 9306210026 930621 REVIEW & OUTLOOK EDITORIAL TWO WOMEN JUNE 13 1993 IS A DATE THAT SHOULD GO DOWN IN WOMEN'S HISTORY ON THAT DAY KIM CAMPBELL AND TANSU CILLER WERE ELECTED THE PRIME MINISTERS OF CANADA AND TURKEY RESPECTIVELY DON'T HOLD YOUR BREATH ON THAT EVENT MAKING IT INTO THE FEMINIST HISTORY BOOKS THE PEOPLE WHO CONTROL THE FEMINIST MOVEMENT AREN'T AT ALL LIKELY TO EMBRACE THESE TWO ACCOMPLISHED WOMEN AS SISTERS PRIME MINISTER CAMPBELL AND PRIME MINISTER CILLER ARE CONSERVATIVES FEMINIST GROUPS HAVE TALKED A LOT LATELY ABOUT HOW THEY WANT MORE WOMEN IN POLITICS BUT THE TRUTH IS THEY WANT ONLY CERTAIN KINDS OF WOMEN THOSE WHO PARROT THE MOVEMENT'S POLITICS CONSIDER THE MINDSET OF FEMINIST DUENNA GLORIA STEINEM WHO LAST MONTH IN TEXAS ATTACKED GOP SENATE NOMINEE KAY BAILEY HUTCHISON AS A FEMALE IMPERSONATOR AFTER SENATOR HUTCHISON'S OVERWHELMING VICTORY MS STEINEM SAID HAVING SOMEONE WHO LOOKS LIKE US BUT THINKS LIKE THEM IS WORSE THAN HAVING NO ONE NORTH OF THE BORDER THAT SAME KIND OF RHETORIC DOGGED MS CAMPBELL'S CAMPAIGN FOR THE LEADERSHIP OF THE PROGRESSIVE CONSERVATIVE PARTY SOME 550 FEMINIST GROUPS BANDED TOGETHER TO OPPOSE HER CANDIDACY DESPITE HER SUPPORT FOR ABORTION RIGHTS KIM CAMPBELL HOLDS A LAW DEGREE FROM THE UNIVERSITY OF BRITISH COLUMBIA STUDIED AT THE LONDON SCHOOL OF ECONOMICS AND SPEAKS ENGLISH FRENCH AND RUSSIAN SHE HAS BEEN MINISTER OF INDIAN AFFAIRS JUSTICE MINISTER AND DEFENSE MINISTER IN HER CLOSELY FOUGHT CAMPAIGN SHE RAN ON A PLATFORM OF SMALLER GOVERNMENT AND FREER TRADE SHE VOWED TO CUT CANADA'S BUDGET REDUCE THE REGULATORY BURDEN AND HELP SMALL BUSINESS SOMEHOW ALL THIS ADDS UP TO A TRANSGRESSION AGAINST CANADIAN FEMINIST THEOLOGY THE BIGGEST CHALLENGE BEFORE HER NOW IS TO BOOST THE POPULARITY OF HER PARTY BEFORE PARLIAMENTARY ELECTIONS WHICH SHE MUST CALL BY NOVEMBER TANSU CILLER'S NAME IS PROBABLY NEW TO MOST FEMINISTS WHO TEND TO LUMP ALL MUSLIM COUNTRIES SOMEWHERE BACK IN THE MIDDLE AGES WE SUSPECT THEY WON'T LIKE WHAT THEY SEE HERE EITHER NOTWITHSTANDING THE FACT THAT MS CILLER PERSUADED HER HUSBAND TO TAKE HER MAIDEN NAME LIKE THE 46YEAROLD MS CAMPBELL THE 47YEAROLD TURKISH PRIME MINISTER REPRESENTS A NEW GENERATION OF LEADERSHIP FOR HER COUNTRY AND LIKE MS CAMPBELL SHE IS TRILINGUAL SPEAKING TURKISH ENGLISH AND GERMAN THOROUGHLY MODERN AS SHE MAY BE SHE REMAINS SENSITIVE TO MUSLIM TRADITIONS SHE IS PARTIAL TO CHANEL SUITS WHEN SHE IS IN ANKARA OR ISTANBUL BUT SHE'S NOT ABOVE COVERING HER HAIR WHEN SHE VISITS A RURAL AREA AN ECONOMIST EDUCATED AT THE UNIVERSITY OF CONNECTICUT AND YALE FOR THE PAST 20 MONTHS MS CILLER HAS BEEN TURKEY'S ECONOMICS MINISTER NO SHRINKING VIOLET SHE HAS CLASHED PUBLICLY WITH THE HEAD OF THE CENTRAL BANK ON HOW TO CUT TURKEY'S 65 RATE OF INFLATION SHE IS AN ARDENT SUPPORTER OF THE PRIVATIZATION OF STATERUN COMPANIES WHICH LOSE ABOUT 2 BILLION A YEAR IN DECEMBER UPSET AT THE GOVERNMENT'S SLOW PROGRESS IN SELLING OFF ENTERPRISES SHE UPSTAGED THE OFFICIAL PRIVATIZATION AGENCY BY INVITING HOLD ONTO YOUR SEAT MARGARET THATCHER TO ANKARA ON THE SAME DAY THAT THE AGENCY WAS HOSTING A PRIVATIZATION CONFERENCE IN ISTANBUL AS PRIME MINISTER SHE HAS VOWED TO ACCELERATE ECONOMIC REFORMS AND SPEED UP TURKEY'S INTEGRATION INTO THE EUROPEAN COMMUNITY WHILE WE'RE ON THE SUBJECT LET'S NOT FORGET POLAND'S FREEMARKET PRIME MINISTER HANNA SUCHOCKA THE CLEAR FAVORITE IN POLAND'S SEPT 19 ELECTIONS INTERESTINGLY SHE KIM CAMPBELL AND TANSU CILLER ARE ALL ABOUT THE SAME AGE AS HILLARY CLINTON AND LANI GUINIER SOMEHOW WE DOUBT THAT CONSERVATIVE WOMEN RUNNING ENTIRE NATIONS LOSE TOO MUCH SLEEP OVER WESTERN FEMINISTS WRITING ABOUT MALEIDENTIFIED WOMEN ASSUMING THAT ALL WOMEN SHOULD THINK ALIKE IS OF COURSE SEXISM IF IN FACT FEMINISTS HERE ARE GENUINELY INTERESTED IN CHAMPIONING WOMEN FOR HIGH OFFICE THEY MIGHT WANT TO FIND A WAY TO BE A TAD MORE INCLUSIVE ON THE AVAILABLE EVIDENCE FROM TEXAS TO TURKEY TO CANADA WOMEN AND CONSERVATISM SEEM TO BE A WINNING POLITICAL MIXTURE 9306210025 930621 BUSINESS BRIEF CHEROKEE INC OWNER OF GUESS INC REPORTS HE HOLDS A 199 POSITION GEORGES MARCIANO HOLDS A 199 STAKE IN CHEROKEE INC IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION MR MARCIANO OWNER OF APPAREL COMPANY GUESS INC SAID HE PURCHASED THE STAKE IN THE SUNLAND CALIF COMPANY FROM JUNE 3 TO 11 FOR 375 TO 4375 A SHARE MR MARCIANO PURCHASED A 725000SHARE BLOCK OF THE COMPANY ON JUNE 11 AT 4125 A SHARE THE FILING SAID MR MARCIANO HOLDS 995000 SHARES OF CHEROKEE FOR INVESTMENT REASONS CHEROKEE A MAKER OF SPORTSWEAR AND SHOES DECLINED TO COMMENT ON THE INVESTMENT 9306210024 930621 HONDA UNIT TO BEGIN EXPORTING SWEPSONVILLE NC HONDA MOTOR CO SAID IT WILL BE EXPORTING 75000 AUTOMOBILE AUTOMATICTRANSMISSION CASES A YEAR TO JAPAN BEGINNING IMMEDIATELY THE CASES WILL BE USED IN HONDA CIVIC AND HONDA DOMANI CARS SOLD IN JAPAN THE CASES WILL BE MANUFACTURED BY THE COMPANY'S HONDA POWER EQUIPMENT UNIT WHICH MAINLY MANUFACTURES LAWNMOWER AND OTHER POWER EQUIPMENT THE UNIT HAS MADE AUTOMOBILE TRANSMISSION CASES SINCE 1990 FOR USE IN USBUILT CIVICS 9306210023 930621 RISING SONS AT STAKE IN JAPAN THE ROLE THAT NATION WILL PLAY IN THE WORLD YOUNGER REBELS ARE URGING A BOLD STANCE YET SHIFT COULD BENEFIT THE US MIYAZAWA'S HUMBLING FALL BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO KUNIO HATOYAMA EPITOMIZES JAPAN'S EXHAUSTED POLITICAL SYSTEM FOR YEARS MR HATOYAMA HAS BEEN A MEMBER OF THE LIBERAL DEMOCRATIC PARTY'S MAJORITY IN PARLIAMENT HIS GRANDFATHER HELPED FOUND THE PARTY IN 1955 AND WAS ITS FIRST PRIME MINISTER HIS FATHER AND HIS BROTHER WERE LDP DIET MEMBERS TOO BUT ON SATURDAY THE 44YEAROLD MR HATOYAMA TOLD SUPPORTERS HE WAS BREAKING WITH THIS LONG LEGACY THE CROWD CHEERED MR HATOYAMA BURST INTO TEARS I WANT TO SET UP A NEW REGIME HE PROCLAIMED AND MAKE THE LDP LOSE THIS WAS A WEEKEND FOR DRAMA IN JAPAN SIMILAR DISSENT ON FRIDAY BROUGHT DOWN THE GOVERNMENT OF PRIME MINISTER KIICHI MIYAZAWA AND APPEARED TO CLEAVE THE LDP A POLITICAL MACHINE THAT HAS RULED JAPAN FOR THE LAST FOUR DECADES NO ONE COULD REMEMBER A TIME IN RECENT YEARS WHEN THE GOVERNMENT SEEMED IN SUCH DISARRAY THE SPARK FOR THE REVOLT WAS OSTENSIBLY A HIGHMINDED FIGHT OVER POLITICAL REFORM SCANDALS IN THE LDP BEGAT CALLS FROM INSIDE AND OUTSIDE THE PARTY FOR CHANGE AND WHEN THOSE DEMANDS WERE IGNORED A NOCONFIDENCE VOTE PROMPTED MR MIYAZAWA TO DISSOLVE PARLIAMENT YET SCRATCH MOST OF THE REFORMERS AND YOU WILL FIND THE VERY SCIONS OF SMOKEDFILLED ROOMS THAT EVERYBODY SEEMS TO WANT TO THROW OUT INSTEAD AT ITS CORE THE TUMULT PLAYING OUT IN JAPAN TODAY IS ABOUT A MUCH BROADER SET OF IDEAS ABOUT WHAT ROLE JAPAN SHOULD HAVE IN THE WORLD ABOUT HOW THE NATION SHOULD BE LED AND ABOUT WHICH GENERATION OF LEADERS SHOULD STAND AT THE HELM IT IS A REVOLT IN SOME MEASURE OF OPPORTUNISTS SEIZING ON AN ISSUE TO GRAB POWER AND IT IS A REVOLT FROM WITHIN THE ESTABLISHMENT THERE WERE NO NOISY PUBLIC DEMONSTRATIONS THAT BROUGHT THIS GOVERNMENT DOWN LIKE THE TEARFUL MR HATOYAMA IT IS THE RULERS THEMSELVES WHO FEEL AN URGE TO BREAK WITH THE PAST IF THEY ARE SUCCESSFUL THEY COULD WELL CHANGE MANY OF THE RELATIONS JAPAN HAS WITH THE OUTSIDE WORLD PARTICULARLY ITS TRADE AND DIPLOMATIC TIES WITH THE US IF JAPAN CAN'T RESPOND TO ISSUES OF INTERNATIONAL SOCIETY IT WILL BE LED DOWN A DANGEROUS PATH WARNS ICHIRO OZAWA A CHIEF POWER BEHIND THE REFORM MOVEMENT WHETHER A POLITICIAN TOOK ILLEGAL MONEY OR NOT HE REASONS IS NOT REALLY SIGNIFICANT BY COMPARISON THIS IS PART OF THE DISSOLUTION OF THE LDP A NEW BEGINNING FOR POSTWAR JAPANESE DEMOCRACY ADDS GERALD CURTIS A JAPAN EXPERT AT COLUMBIA UNIVERSITY YOU WILL SEE A YOUNGER GENERATION OF PEOPLE COMING TO POWER VERY QUICKLY THEY HAVE MUCH MORE SELFCONFIDENCE THERE WILL BE MORE OF A PROPENSITY ON THEIR PART TO CONFRONT ISSUES HEADON THAT IS IF THERE IS ANY CHANGE AT ALL IN THIS LAND OF INCREMENTALISM JAPANESE VOTERS TEND TO PREFER KNOWN EVIL TO UNCERTAINTY ANY NUMBER OF PREMATURE OBITUARIES HAVE BEEN WRITTEN FOR THE LDP OVER THE YEARS I WILL VOTE FOR THE LDP IN ELECTIONS SCHEDULED FOR NEXT MONTH SAYS 50YEAROLD KEIKO SHOJI SHE HAS STOPPED OUTSIDE A TOKYO TRAIN STATION TO LISTEN TO A POLITICIAN BELLOW THROUGH A LOUDSPEAKER ABOUT THE RULING PARTY'S SINS THE POLITICAL WORLD IS VERY CONFUSED NOW SHE SAYS THE LDP IS A STABLE PARTY PEOPLE IN JAPAN ARE FEELING ESPECIALLY INSECURE BECAUSE THESE ARE UNSETTLING TIMES HERE THE ECONOMY IS IN ITS WORST SLUMP IN 20 YEARS MANY PEOPLE NOW WORRY THAT IF DRASTIC MOVES ARE NEEDED TO STIMULATE THE ECONOMY A TAX CUT FOR EXAMPLE OR ANOTHER SPURT OF EMERGENCY PUBLIC SPENDING THERE WON'T BE ANYONE STRONG ENOUGH AT THE TOP TO DO THE NECESSARY POLITICAL BROKERING ONE WORRISOME INDICATOR PRICES ON THE TOKYO STOCK EXCHANGE MOVED SHARPLY LOWER IN TRADING MONDAY MORNING I DON'T KNOW IF POLITICAL REFORM IS WHAT THE JAPANESE PEOPLE WANT SAYS SHOKEI ARAI 45 A DIET MEMBER WHO IS STICKING WITH THE LDP WHAT THEY REALLY WANT NOW IS ECONOMIC RECOVERY THEN THERE ARE THE TRADE TALKS WITH THE US THE TWO NATIONS ARE IN THE MIDST OF ONE OF THE MOST VITRIOLIC AND WIDERANGING TRADE SPATS IN THEIR HISTORY AND SEVERAL DEADLINES ARE TIED TO THE SUMMIT OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS WHICH JAPAN IS HOSTING JULY 79 IN THE PAST DIFFICULT TRADE PACTS HAVE REQUIRED PLENTY OF INTERNAL POLITICAL ARMTWISTING IN JAPAN NOW THE US AND THE REST OF THE G7 MAY FIND JAPAN PREOCCUPIED WITH THE ELECTIONS MR MIYAZAWA HAS CALLED FOR JULY 18 TOO PREOCCUPIED TO OFFER BOLD INITIATIVES MR MIYAZAWA WILL REMAIN AS A LAMEDUCK PRIME MINISTER AT LEAST UNTIL THE VOTE ANY DECISION THAT REQUIRES MIYAZAWA'S INTERVENTION WE WON'T GET A CLINTON ADMINISTRATION OFFICIAL MOANED FRIDAY BUT IN THE LONGER RUN WHAT MIGHT THE POLITICAL UPHEAVAL IN JAPAN MEAN FOR AMERICA THE REFORMERS SAY THEY ARE BOTH CONSERVATIVE AND PROUS BUT CHANGE COULD LEAD TO A MORE FORCEFUL JAPAN LESS WILLING TO CAVE IN TO US DEMANDS YET THE US MAY HAVE LESS NEED TO MAKE THOSE DEMANDS A REAL TWOPARTY SYSTEM COULD BREAK THE PARALYSIS THAT CHARACTERIZES JAPAN'S POLICY MAKING PRODUCING A NATION MORE RECEPTIVE TO NEW IDEAS UNTIL NOW JAPAN HAS RESPONDED CHIEFLY WHEN THE US CAME BANGING AT ITS DOOR PEOPLE HERE EVEN JOKE THAT AMERICA IS THE TRUE OPPOSITION PARTY IN JAPAN SUPPLANTING THE FEEBLE SOCIALISTS GAIATSU OR FOREIGN PRESSURE HAS BENEFITED NOT ONLY US COMPANIES SEEKING TO SELL IN JAPAN SAY THESE PEOPLE IT HAS ALSO HELPED THE JAPANESE CONSUMER WHO VIRTUALLY ABANDONED BY THE PROBUSINESS LDP REAPED THE REWARDS OF ADDITIONAL PRICE COMPETITION IF A TRULY ROBUST OPPOSITION FORMS IN JAPAN THE NATION'S OFTEN DISENFRANCHISED URBAN CONSUMER SANDWICHED INTO TINY HOMES AND FORCED TO PAY SKYHIGH PRICES MIGHT FINALLY FIND AN ADVOCATE AND THAT COULD BENEFIT THOSE ABROAD WHO HOPE TO OPEN JAPAN'S MARKETS IN ORDER TO MAKE A LOT OF THE STRUCTURAL CHANGES THAT THE US WANTS OF JAPAN WE REALLY NEED MORE FLEXIBILITY SAYS YUKIO OKAMOTO A FORMER FOREIGN MINISTRY OFFICIAL WE HAVE TO CHANGE THE GOVERNMENT PARTY TO CHANGE THE COURSE OF THE NATION IN THE WEEKS APPROACHING THE G7 MEETING OUTSIDERS WILL SEE JAPAN'S INTERNAL STRUGGLE PLAY OUT ALONG GENERATIONAL LINES IN NAGATACHO TOKYO'S EQUIVALENT OF CAPITOL HILL THE YOUNG TURKS ARE STORMING THE RAMPARTS PROTECTING THE CASTLE ARE THE SENIOR POLITICIANS LIKE THE 73YEAROLD MR MIYAZAWA WHO LIVED THROUGH JAPAN'S HUMILIATING WORLD WAR II DEFEAT AND THE US OCCUPATION THE ELDER POLITICIANS ARE COMFORTABLE WITH AN ECONOMICALLY STRONG JAPAN THAT PLAYS ONLY A LIMITED DIPLOMATIC ROLE FIFTY YEARS IS A SHORT TIME SINCE THE WAR MR MIYAZAWA ONCE SAID URGING JAPAN TO BE CAUTIOUS IN EASING ITS BAN ON SENDING TROOPS ABROAD WE SHOULD NOT FORGET EASILY CHARGING UP FROM BELOW ARE MEN LIKE MR OZAWA 51 A DIET MEMBER AND POWER BROKER WHO STIRS MIXED OPINIONS IN THE ELECTORATE MR OZAWA WANTS JAPAN TO PLAY A MORE ACTIVE ROLE ON THE WORLD STAGE AND HAS URGED TOKYO TO EVEN CONSIDER HAVING JAPANESE COMBAT TROOPS JOIN FUTURE UNITED NATIONS FORCES IT IS TIME MR OZAWA SAYS FOR JAPAN TO BECOME A NORMAL NATION MR MIYAZAWA AN ERUDITE FORMER FINANCE MINISTRY OFFICIAL IS CONTENT WITH TRADITIONAL JAPANESE POLITICS WHICH LEAVES DECISIONS TO JAPAN'S OMNIPOTENT BUREAUCRATS AND TO BACKROOM DEALS THE VOTERS ARE INCIDENTAL LAST WEEK BELEAGUERED AS HE WAS MR MIYAZAWA MADE NO PUBLIC APPEALS AS MIGHT HAVE BEEN EXPECTED INSTEAD HE COULD BE SEEN ON TELEVISION NEWS FOOTAGE SCURRYING TIGHTLIPPED FROM MEETING TO MEETING IN CONTRAST MR OZAWA'S COCONSPIRATOR TSUTOMU HATA 57 A FORMER FINANCE MINISTER IN MR MIYAZAWA'S CABINET WAS MAKING THE ROUNDS OF TALK SHOWS EVEN FIELDING QUESTIONS FROM A STUDIO AUDIENCE I WANT TO MAKE PARLIAMENT A PLACE WHERE EVERY ISSUE IS DISCUSSED DEEPLY HE DECLARED EVEN MANY JAPANESE HOWEVER QUESTION THEIR ABILITY TO ABSORB DEMOCRACY IN THE WESTERN SENSE THEIR CULTURE DEFERS TO AUTHORITY OPTS FOR CONSENSUS OVER DEBATE AND SHUNS INDIVIDUAL RESPONSIBILITY IT WAS THE US OCCUPATION FORCE AFTER WORLD WAR II THAT IMPOSED DEMOCRATIC CHANGES ONE FAMOUS JAPANESE CARTOON SHOWS DEMOCRACY PARACHUTING FROM THE SKY LIKE A RELIEF PACKAGE JAPAN'S EARLY POSTWAR POLITICS WERE TUMULTUOUS MARKED BY BITTER BATTLES BETWEEN LEFT AND RIGHT AND FISTFIGHTS IN THE DIET THEN IN 1960 THE LDP LAUNCHED ITS DRIVE TO DOUBLE INCOME FOR EVERYONE IN THE COUNTRY THAT WILDLY SUCCESSFUL PLAN GAVE BIRTH TO A NATIONAL TAMMANY HALLSTYLE OF POLITICS THAT HAS PREVAILED TO THIS DAY NOBODY ROCKED THE BOAT SO LONG AS EVERYBODY THE LDP THE OPPOSITION BUREAUCRATS BUSINESS AND THE CITIZENRY GOT THEIR SHARE OF JAPAN'S EVEREXPANDING WEALTH DEALS WERE STRUCK IN THE BACK ROOM DEBATE WAS TABOO IT IS THIS JAPAN THAT THE REFORMERS SAY THEY WANT TO TRANSFORM BUT THE OLD GUARD DIES HARD CONSIDER THOSE WHO SCURRIED ABOUT LAST WEEK TRYING TO PREVENT THE PARTY FROM COLLAPSING KOKO SATO WHO WAS CONVICTED IN THE LOCKHEED CORP BRIBERY INCIDENT OF 1976 MR MIYAZAWA WHO ONCE RESIGNED A CABINET POST BECAUSE OF HIS ROLE IN A STOCK SCANDAL INVOLVING JAPAN'S RECRUIT CO FORMER PRIME MINISTER YASUHIRO NAKASONE ALSO TAINTED IN THE RECRUIT MATTER AND NOBORU TAKESHITA A FORMER PREMIER IMPLICATED IN A LAUNDRYLIST OF SCANDALS THE MOST POWERFUL REFORMERS THE ONES WHO MIGHT REPLACE THESE MEN GREW UP IN THE SYSTEM THEMSELVES THE FIRST SIGNIFICANT LDP DEFECTOR WAS MORIHIRO HOSOKAWA 55 WHO LAST YEAR FOUNDED THE JAPAN NEW PARTY MR HOSOKAWA IS THE HEIR OF FEUDAL LORDS AND HAS BEEN BOTH A GOVERNOR AND A MEMBER OF PARLIAMENT HIS PARTY WHICH PROMISES MORE HONESTY THAN THE LDP IS SOARING IN THE POLLS ANOTHER IS MR HATA WHO LAST YEAR JOINED MR OZAWA TO FORM A REBEL LDP FACTION THE 35MEMBER GROUP IS EXPECTED TO ESTABLISH ITS OWN PARTY THIS WEEK THE GENIAL MR HATA IS A FORMER BUSTOUR DIRECTOR WHO TOOK HIS FATHER'S SEAT IN PARLIAMENT HE WAS LONG THE LDP'S POINTMAN ON AGRICULTURE A KEY CONSTITUENCY AND THEN THERE IS MR OZAWA PERHAPS THE ODDEST REFORMER OF ALL HIS MENTORS WERE THREE OF JAPAN'S DISGRACED POLITICIANS KAKUEI TANAKA WHO WAS CONVICTED IN THE LOCKHEED BRIBERY SCANDAL MR TAKESHITA AND SHIN KANEMARU ONCE THE MOST POWERFUL POL IN JAPAN UNDER THESE MEN HE LEARNED HOW TO WIELD POWER BEHIND THE THRONE IN 1991 FOR EXAMPLE MR OZAWA HAD EACH OF THE CANDIDATES FOR PRIME MINISTER PUBLICLY VISIT HIS OFFICE TO SEEK HIS BLESSING MR MIYAZAWA WAS THE SUCCESSFUL SUPPLICANT MR OZAWA ALSO EARNED A REPUTATION WITH FOREIGNERS AS JAPAN'S CHIEF FIXER OZAWA GOT TO THE HEART OF THE MATTER SAYS MICHAEL B SMITH A FORMER US TRADE OFFICIAL IN 1988 MR OZAWA STEPPED INTO TRADE TALKS ON JAPAN'S CONSTRUCTION MARKET THAT HAD DRAGGED ON FOR TWO YEARS WE REACHED AN AGREEMENT IN EIGHT HOURS MR SMITH RECALLS THEN LAST YEAR EVERYTHING FELL APART MR KANEMARU ADMITTED TO TAKING MILLIONS OF DOLLARS IN ILLEGAL CAMPAIGN CONTRIBUTIONS AND THIS YEAR HE WAS ARRESTED FOR TAX EVASION THE ALLEGED DEEDS FIRED THE REFORM MOVEMENT THAT TOPPLED THE GOVERNMENT FRIDAY FOR HIS PART MR OZAWA BROKE WITH THE LDP ESTABLISHMENT ONLY AFTER MR KANEMARU GOT INTO HOT WATERTIMING THAT LEFT PEOPLE LAUGHING WITH DERISION EXPLAINING HIS ATTENDANCE AT A CRUCIAL 1987 MEETING AT THE CENTER OF A PROBE INTO ILLEGAL CAMPAIGN CONTRIBUTIONS HE TOLD ONE INCREDULOUS TV INTERVIEWER I WAS JUST THERE AS AN ATTENDANT SO I DID THINGS LIKE CHANGE THE DRINKS OR CLEAN THE ASHTRAYS I WASN'T DIRECTLY INVOLVED IN THE DISCUSSION THOUGH MR OZAWA HASN'T BEEN IMPLICATED IN ANY CRIME THE COMPANY HE KEPT ISN'T LOST ON THE PUBLIC ONE MIDDLEAGED MAN ASKED MR HATA ON YESTERDAY'S TALK SHOW WHAT ARE YOU GOING TO DO ABOUT OZAWA'S DIRT MR OZAWA ADROITLY ARGUES THAT CORRUPTION IS MERELY ONE SYMPTOM OF A SYSTEMIC DISEASE THE GOVERNMENT MUST CHANGE HE SAYS NOT SO MUCH BECAUSE IT IS DIRTY BUT BECAUSE IT IS DYSFUNCTIONAL DURING THE COLD WAR ALL POLITICS WAS ABOUT WAS ALLOCATING WEALTH DOMESTICALLY HE SAYS JAPAN DIDN'T THINK ABOUT WHAT IT NEEDED TO DO FOR INTERNATIONAL SOCIETY FOR THINGS LIKE UPHOLDING PEACE OR LIBERTY OR DEMOCRACY TO REMEDY THIS THE REFORMERS ARGUE JAPAN NEEDS TO ENGAGE IN WORLD AFFAIRS AND BEFORE THAT CAN HAPPEN IT MUST REFORM ITS ELECTORAL SYSTEM TO ENCOURAGE A COMPETITION OF IDEAS THE REFORMISTS WANT TO REVAMP JAPAN'S SKEWED SYSTEM OF REPRESENTATION AND MAKE GOVERNMENT MORE RESPONSIVE TO VOTERS THEY WANT TO DEREGULATE THE ECONOMY CUT WORKING HOURS AND MOVE PARTS OF THE GOVERNMENT OUT OF CONGESTED TOKYO HIGHMINDED STUFF BUT HOW DOES ALL THIS PLAY WITH THE FOLKS BACK HOME WHO ARE USED TO A VERY DIFFERENT SORT OF POLITICS IN MR OZAWA'S OWN DISTRICT OF MIZUSAWA A NORTHERN VILLAGE NESTLED IN A QUILT OF RICE FIELDS AND TREECOVERED MOUNTAINS AKIRA SATO A SUPPORTER ISN'T SO CERTAIN ABOUT THIS TALK OF REFORM AND INTERNATIONAL ROLES CLAY CHANDLER CONTRIBUTED TO THIS ARTICLE 9306210022 930621 MARKETING & MEDIA ADVERTISING D'ARCY TV AD FOR DENNY'S SEEKS TO MEND IMAGE AMID BIAS SUITS BY LAURA BIRD TARNISHED BY RACIALDISCRIMINATION CHARGES DENNY'S INC IS HOPING TO MEND ITS PUBLIC IMAGE WITH A TELEVISION COMMERCIAL THE SPOT WHICH CARRIES THE MESSAGE YOU ARE WELCOMED WAS CREATED BY AD AGENCY D'ARCY MASIUS BENTON & BOWLES OF NEW YORK IT IS A BID BY DENNY'S A UNIT OF FLAGSTAR COS TO GET OUT IN FRONT OF ALLEGATIONS THAT IT DISCRIMINATES ON THE BASIS OF RACE MADE IN A SPATE OF RECENT LAWSUITS FILED BY CUSTOMERS AND EMPLOYEES AND IN A CONSENT DECREE IT SIGNED WITH THE JUSTICE DEPARTMENT ACTIVISTS RECENTLY STAGED PROTESTS AT A MARYLAND DENNY'S HEIGHTENING MEDIA ATTENTION THE UNUSUAL 60SECOND SPOT TAKES THE FORM OF A PLEDGE WHICH DENNY'S SAYS HAS BEEN SIGNED BY ALL 46000 OF ITS EMPLOYEES THE CHAIN SAYS IT WILL AIR THE COMMERCIAL FOR AT LEAST TWO WEEKS IN THE 41 MARKETS WHERE IT OPERATES AND POST COPIES OF IT IN ITS 1400PLUS RESTAURANTS EVERYONE WHO COMES TO OUR RESTAURANTS DESERVES TO BE TREATED WITH RESPECT DECLARES DENNY'S CHAIRMAN AND CHIEF EXECUTIVE JEROME J RICHARDSON WHO APPEARS AT THE BEGINNING OF THE COMMERCIAL HE IS FOLLOWED BY A RACIALLY DIVERSE SUCCESSION OF DENNY'S EMPLOYEES EACH ONE OFFERING A FEW REASSURING WORDS I PROMISE YOU A FRIENDLY GREETING SAYS A WHITE HOSTESS GOOD FOOD FRESHLY MADE SAYS A WHITE CHEF THE SPOT GOES ON IF THERE'S A DELAY WE'LL LET YOU KNOW SAYS A BLACK WAITRESS IF THERE'S A MIXUP WE'LL APOLOGIZE ADDS A WHITE ONE AND WE'LL MAKE IT RIGHT PROMISES A BLACK MANAGERTYPE THE SPOT COMES CLOSEST TO ADDRESSING THE SUBSTANCE OF THE LITIGATION WHEN ONE WAITER A BLACK MAN SAYS I AM HUMAN THEN A WHITE WAITRESS ADDS I WILL MAKE MISTAKES AND AN ASIAN WAITRESS CONCLUDES BUT PLEASE KNOW THEY WILL NEVER BE INTENTIONAL EVEN THOUGH CONVENTIONAL PUBLICRELATIONS WISDOM SUGGESTS THAT CLIENTS IN CRISIS MOVE QUICKLY THIS COMMERCIAL MAY BE PREMATURE EXPERTS IN CRISISMANAGEMENT CAUTION WHEN YOU HAVE A PROBLEM LIKE THE ONE DENNY'S HAS YOU HAVE TO CLEAN UP THE PROBLEM FIRST BEFORE TALKING ABOUT IT SAYS BOB DILENSCHNEIDER CHAIRMAN OF THE DILENSCHNEIDER GROUP A NEW YORK PUBLIC RELATIONS FIRM FIRST YOU ESTABLISH A RECORD THEN YOU TALK ABOUT THE RECORD BECAUSE THE LITIGATION MAY DRAG ON FOR SOME TIME A SPOKESWOMAN FOR DENNY'S EXPLAINS THAT THE COMPANY FELT IT HAD TO ACT QUICKLY TO ADDRESS THE CONCERNS OF BOTH CUSTOMERS AND EMPLOYEES SHE ALSO NOTED THAT THE COMPANY HAS BEGUN AN ANTIBIAS PROGRAM FOR EMPLOYEES WE CAN'T WAIT UNTIL THE LAWSUITS ARE SETTLED SHE SAYS THOSE LAWSUITS INCLUDE A CIVIL COMPLAINT FILED IN MARCH IN FEDERAL COURT IN SAN JOSE CALIF BY 32 BLACK CUSTOMERS IT ALLEGES AMONG OTHER THINGS THAT DENNY'S HAS REQUIRED BLACKS BUT NOT WHITES TO PREPAY FOR MEALS AND TO PAY COVER CHARGES IN ADDITION SIX AGENTS OF THE US SECRET SERVICE FILED A FEDERAL LAWSUIT LAST MONTH ALLEGING THAT THEY WERE DENIED SERVICE AT A DENNY'S IN ANNAPOLIS MD WHILE WHITE PATRONS WERE SERVED PROMPTLY AND LAST TUESDAY FIVE CURRENT AND FORMER BLACK EMPLOYEES OF DENNY'S RESTAURANTS IN CLEVELAND ALSO SUED THE CHAIN ALLEGING THAT THEY WERE SUBJECTED TO RACIAL BIAS AND HARASSMENT IN MARCH THE US JUSTICE DEPT SAID IT HAD SUBSTANTIATED CHARGES OF BIAS AGAINST DENNY'S CUSTOMERS DENNY'S PARENT COMPANY THEN KNOWN AS TW HOLDINGS INC SIGNED A CONSENT DECREE IN APRIL THAT REQUIRES IT TO CONDUCT ANTIBIAS PROGRAMS FOR EMPLOYEES AND TO INCLUDE A NONDISCRIMINATION STATEMENT IN ITS ADVERTISING SINCE MAY DENNY'S SAYS IT HAS BEEN WORKING WITH THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE IN AN EFFORT TO CREATE MORE OPPORTUNITIES FOR MINORITIES AT THE COMPANY MUCH IS AT STAKE PLAINTIFFS' LAWYERS ARE SEEKING CLASSACTION STATUS FOR THE CALIFORNIA SUIT EARLIER THIS YEAR DENNY'S MAIN COMPETITOR SHONEY'S INC OF NASHVILLE TENN SETTLED A RACIALBIAS CLASSACTION SUIT BROUGHT BY SOME OF ITS EMPLOYEES BY PAYING 105 MILLION IN DAMAGES SOME PUBLICRELATIONS EXPERTS WARN THAT THE DENNY'S COMMERCIAL COULD EASILY BACKFIRE IT IS TOO FOCUSED ON THE COMPANY'S CUSTOMERS THEY SAY AND DOESN'T ADDRESS THE CHARGES BROUGHT BY EMPLOYEES DAVID HURWITT DENNY'S SENIOR VICE PRESIDENT OF MARKETING SAYS THE COMMERCIAL IS AIMED AT BOTH GROUPS OUR EMPLOYEES ARE UNDER A GREAT DEAL OF SCRUTINY AND PRESSURE HE SAYS WE WANT THEM TO KNOW WE BELIEVE IN THEM AND ARE CONCERNED WITH THEIR FEELINGS AND MORALE THE PUBLICITY OVER THE BIAS CHARGES HAS HAD NO MEASURABLE IMPACT ON OVERALL SALES THE DENNY'S SPOKESWOMAN SAYS BEFORE THE FILING OF THE LAWSUITS DENNY'S TRAFFIC IN THE FIRST QUARTER WAS DOWN 82 IN DEFENDING ITSELF DENNY'S IS IN THE TOUCHY POSITION OF ASSERTING THAT POOR SERVICE AT ITS RESTAURANTS IS COLORBLIND AFFECTING WHITES AS WELL AS BLACKS WHILE CONCEDING THAT IN SOME INSTANCES BLACKS HAVE RECEIVED POOR SERVICE AT DENNY'S THE SPOKESWOMAN ADDS UNFORTUNATELY OTHERS HAVE HAD LENGTHY WAITS TOO DENNY'S BAD PUBLICITY HAS SPILLED OVER ONTO A PRIVATE BUSINESS VENTURE OF ITS CHAIRMAN AS WELL MR RICHARDSON A FORMER WIDE RECEIVER FOR THE BALTIMORE COLTS IS LEADING A GROUP OF INVESTORS WHO ARE COMPETING TO BRING A NATIONAL FOOTBALL LEAGUE EXPANSION TEAM TO CHARLOTTE NC DENNY'S PROTESTERS HAVE THREATENED TO BLOCK THIS EFFORT ALTHOUGH MR RICHARDSON HAS SAID THAT MINORITIES WOULD HAVE THE OPPORTUNITY TO INVEST IN THE TEAM IF HE SUCCEEDS THE IDEA FOR THE SPOT DENNY'S MR HURWITT SAYS CAME DURING A MEETING AT THE COMPANY'S SPARTANBURG SC HEADQUARTERS BETWEEN DENNY'S EXECUTIVES AND THE TOP BRASS AT AGENCY DMB&B THE TEXT WAS WRITTEN BY JOHN NEIMAN DMB&B VICE CHAIRMAN AND CHIEF CREATIVE OFFICER MR HURWITT SAYS FIFTY EMPLOYEES WERE INVITED TO COMPANY HEADQUARTERS LAST SUNDAY TO RECITE THE PLEDGE ON FILM AND THE AGENCY PIECED TOGETHER THE SPOT IN TIME FOR FLAGSTAR SHAREHOLDERS TO VIEW IT LAST WEDNESDAY THE US POSTAL SERVICE SAID IT WILL START REVIEWING AD AGENCIES FOR ITS ESTIMATED 70 MILLION ACCOUNT IN SEPTEMBER FOLLOWING THE DISCLOSURE LAST WEEK THAT THE BIG CLIENT IS INVESTIGATING BILLINGS PRACTICES AT ITS INCUMBENT AGENCY YOUNG & RUBICAM OF NEW YORK A POSTAL SERVICE SPOKESWOMAN SAID AS MANY AGENCIES AS POSSIBLE WOULD BE CONTACTED VIA REQUESTS FOR PROPOSALS FOR THE ACCOUNT THE SERVICE IS RELEASING A DRAFT OF THE DOCUMENT IN JULY FOR PUBLIC COMMENT IT IS UNCLEAR WHETHER Y&R WILL BE INVITED TO TAKE PART THE BILLINGS INVESTIGATION WHICH IS FOCUSED ON ONE OF Y&R'S CORPORATE DESIGN UNITS CYB YOSUMURA ALSO OF NEW YORK SHOULD BE CONCLUDED IN A MATTER OF WEEKS THE POSTAL SERVICE SAID Y&R'S CONTRACT ON THE ACCOUNT ENDS NEXT MARCH SOME ADVERTISERS SAY THEY PLAN TO TURN BACK TO MORE TRADITIONAL FORMS OF ADVERTISING IN 1993 TO FOCUS ON BRAND NAME AND IMAGE ACCORDING TO A SURVEY OF 422 EXECUTIVES AT MAJOR COMPANIES IN 1993 546 OF THOSE SURVEYED SAID THEY THINK COUPONS AND DISCOUNTING NEGATIVELY AFFECT A BRAND'S LONGTERM IMAGE AND POSITION UP FROM 359 A YEAR AGO AT THE SAME TIME ONLY 28 SAID THEY PLANNED TO CUT TRADITIONAL MEDIA SPENDING IN FAVOR OF PROMOTIONS DOWN FROM 655 LAST YEAR CAMPAIGNS BASED ON COUPONS AND PRICE APPEAR TO BE LOSING APPEAL TO THOSE FOCUSED ON BRANDS OR PRODUCT FEATURES SAID JACK MYERS PRESIDENT OF MYERS REPORTS OF PARSIPPANY NJ WHICH CONDUCTED THE SURVEY HE SAID IT WAS TOO SOON TO SAY WHETHER THE UPTICK REFLECTED A TREND FOR PACKAGED GOODS MANUFACTURERS TRADITIONAL AD BUDGETS ARE EXPECTED TO RISE AS A PORTION OF TOTAL MARKETING SPENDING BY 1 TO 23 THIS YEAR MR MYERS SAID TRADITIONAL ADVERTISING'S SHARE OF MARKETING BUDGETS HAS BEEN SHRINKING SINCE 1970 WHEN IT OCCUPIED ROUGHLY 65 OF FIRMS' TOTAL BUDGETS CALIFORNIA TOURISM THE CALIFORNIA TRADE AND COMMERCE AGENCY HAS TAPPED THE SAN FRANCISCO OFFICE OF WPP GROUP'S J WALTER THOMPSON FOR ITS 45 MILLION OFFICE OF TOURISM AND ECONOMIC DEVELOPMENT ACCOUNT OTHER CONTENDERS WERE INCUMBENT LIVINGSTON & CO LOS ANGELES POPPE TYSON LOS ANGELES AND SALVATI MONTGOMERY SAKODA COSTA MESA ARIZ 9306210021 930621 ENTERPRISE FOCUS ON FRANCHISING RULING CHILLS FRANCHISERS' USE OF EVICTIONS AS LEVERAGE BY JEFFREY A TANNENBAUM STAFF REPORTER OF THE WALL STREET JOURNAL FRANCHISERS FEAR USING LEASES TO CONTROL FRANCHISEES WILL BECOME HARDER BESIDES REQUIRING FRANCHISEES TO SIGN CONTRACTS MANY FRANCHISERS ALSO HOLD THE FRANCHISEES' LEASES SOME THEN USE EVICTIONS OR EVICTION THREATS TO GAIN LEVERAGE IN DISPUTES WITH FRANCHISEES BUT NOW ATTEMPTED EVICTIONS HAVE BACKFIRED ON A MAJOR FRANCHISER POSING QUESTIONS FOR OTHERS IN A CASE INVOLVING EVICTION EFFORTS A STATE APPEALS COURT IN MOUNT VERNON ILL LAST MONTH UPHELD AN UNUSUAL AWARD OF 1 MILLION IN PUNITIVE DAMAGES AGAINST DOCTOR'S ASSOCIATES INC THE FORT LAUDERDALE FLA COMPANY IS THE FRANCHISER OF THE HUGE SUBWAY SANDWICHES & SALADS CHAIN WITH MORE THAN 7850 OUTLETS WORLDWIDE THE ILLINOIS RULING IS A HORRIBLE PRECEDENT FOR FRANCHISING WHICH I TRUST NONE OF THE OTHER 49 STATES WILL FOLLOW SAYS DAVID J KAUFMANN A NEW YORK FRANCHISING LAWYER TECHNICALLY STATECOURT RULINGS DON'T SET PRECEDENTS FOR COURTS IN OTHER STATES EVEN SO OTHER COURTS MAY BE INFLUENCED BY THE DECISION THE ILLINOIS DISPUTE BEGAN SEVERAL YEARS AGO WHEN SUBWAY FRANCHISEE SUBSTANTIAL ENTERPRISES INC IN O'FALLON ILL STOPPED PAYING ROYALTIES AND FEES IT CLAIMED THAT DOCTOR'S HAD BREACHED THE FRANCHISE CONTRACT BY UNREASONABLY REFUSING TO APPROVE NEW STORE SITES FOR SUBSTANTIAL THE FRANCHISER WHICH HELD THE LEASES ON SUBSTANTIAL'S EXISTING STORES RETALIATED WITH ATTEMPTED EVICTIONS IN THE ENSUING COURT BATTLE THE MADISON COUNTY CIRCUIT COURT IN 1991 ORDERED EACH SIDE TO PAY ACTUAL DAMAGES TO THE OTHER 200000 FOR THE FRANCHISEE AND MORE THAN 300000 FOR THE FRANCHISER BUT IT ALSO HIT DOCTOR'S WITH PUNITIVE DAMAGES DETERMINED BY A JURY THE FRANCHISEE REPRESENTED BY ST LOUIS ATTORNEY DAVID M DUREE MAINTAINED IN COURT THAT DOCTOR'S HAD FRAUDULENTLY MISREPRESENTED ITS BUSINESS METHODS ENTITLING HIS CLIENT TO PUNITIVE DAMAGES IN AN APPEAL THE FRANCHISER ARGUED THAT SUCH DAMAGES WERE IMPROPER IN WHAT IT TERMED A CONTRACT DISPUTE THE APPEALS COURT FOUND NO LEGAL ERROR AND SAW REASONS THAT THE JURY MIGHT HAVE AWARDED SUCH DAMAGES THE FRANCHISE AND SUBLEASE AGREEMENTS FAILED TO SPELL OUT THAT THE FRANCHISER'S METHOD OF RESOLVING DISPUTES IS BY FILING EVICTION LAWSUITS RATHER THAN BY GOING TO ARBITRATION THE COURT SAID DOCTOR'S CONTINUES TO DENY WRONGDOING IT IS ASKING THE ILLINOIS SUPREME COURT TO REVIEW THE CASE US GUARANTEES FOR FRANCHISES IN EMERGING ECONOMIES ARE INTERRUPTED FRANCHISERS COMPLAIN THAT THE FEDERAL AGENCY FOR INTERNATIONAL DEVELOPMENT OR USAID HAS STOPPED FUNDING A PILOT PROGRAM TO GUARANTEE AS MUCH AS 20 MILLION IN BANK LOANS TO US FRANCHISERS' MASTER LICENSEES AND FRANCHISEES IN DEVELOPING COUNTRIES USAID SAYS ITS ENTIRE OFFICE OF INVESTMENT OF WHICH THE FRANCHISING PROGRAM IS A PART IS UNDER REVIEW MEANWHILE NO FUNDS ARE ALLOTTED FOR THE FRANCHISING PROGRAM IN THE NEXT FEDERAL FISCAL YEAR ENDING SEPT WE'RE EXTREMELY DISAPPOINTED SAYS IRL H MARSHALL PRESIDENT OF DURACLEAN INTERNATIONAL INC A DEERFIELD ILL FRANCHISER OF CLEANING SERVICES DURACLEAN SAYS IT LOST A PROSPECTIVE MASTER LICENSEE IN ISRAEL BECAUSE AN EXPECTED LOAN GUARANTEE FROM USAID DIDN'T MATERIALIZE THE LOAN TOTAL GUARANTEED BY THE PROGRAM BEFORE IT WAS INTERRUPTED COULDN'T BE ASCERTAINED 18 FRANCHISERS WERE ENROLLED IN THE PROGRAM FRANCHISERS' LOBBYISTS AIM TO GET THE FUNDING REVIVED WE ARE IN COMMUNICATION WITH THE WHITE HOUSE TRYING TO RESURRECT THE PROGRAM SAYS ROBERT O JONES JR SENIOR DIRECTOR OF INTERNATIONAL AFFAIRS FOR THE INTERNATIONAL FRANCHISE ASSOCIATION THE MAJOR FRANCHISER TRADE GROUP ALPHAGRAPHICS INC A TUCSON ARIZ PRINTSHOP FRANCHISER CALLS THE PROGRAM VERY IMPORTANT USAID RECENTLY APPROVED A LOAN GUARANTEE THAT WILL AID THE CHAIN'S EXPANSION INTO THE PHILIPPINES UNDER THE PROGRAM FOREIGN FRANCHISEES STILL NEEDED BANK LOANS IN THEIR OWN COUNTRIES BUT USAID WAS TO GUARANTEE 50 OF PRINCIPAL THUS MAKING SUCH LOANS EASIER TO GET HOT STREAK NEIL A SIMON A FRANCHISING LAWYER IN PRIVATE PRACTICE IN WASHINGTON DC LOOKED INTO 36 CONSECUTIVE FEDERALCOURT DECISIONS IN FEDERAL TRADE COMMISSION LAWSUITS OVER ALLEGED VIOLATIONS OF FRANCHISEDISCLOSURE RULES THE SCORE FTC 36 DEFENDANTS 0 A STICKY SUBJECT AT BURGER KING IS COKE SYRUP IN MIAMI A SPOKESWOMAN FOR GRAND METROPOLITAN PLC'S BURGER KING CORP UNIT SAYS THE FASTFOOD OPERATOR AND FRANCHISER IS PUTTING INTO PLACE A QUALITYCONTROL PROGRAM FOR SOFT DRINKS TO ENSURE THAT OUR CUSTOMERS RECEIVE THE HIGHEST QUALITY POSSIBLE WHILE CONCEDING THAT THE CHAIN'S SOFT DRINKS SOMETIMES ARE TOO WATERY OR NOT FIZZY ENOUGH BURGER KING DECLINES TO SPELL OUT WHAT THE NEW US PROGRAM WILL INVOLVE BUT FRANCHISEES FEAR THAT IT WILL MEAN COSTLY NEW DISPENSING EQUIPMENT FOR COCACOLA CO'S SYRUPS THE BASE FOR THE CHAIN'S BESTSELLING DRINKS IT'S GOING TO COST A GOOD DEAL OF MONEY THERE'S NO QUESTION ABOUT THAT SAYS JB RUENHECK A FLORIDA FRANCHISEE AND PRESIDENT OF AN ASSOCIATION OF BURGER KING FRANCHISEES FRANCHISEES ACKNOWLEDGE THAT THE CHAIN LIKE OTHERS NEEDS BETTER QUALITY CONTROL FOR DRINKS MR RUENHECK SAYS THE ISSUES ARE HOW WE GET THERE HOW QUICKLY WE GET THERE AND THE COST HE ADDS THE CHAIN SAYS COMPLIANCE WITH THE PROGRAM WILL BE OPTIONAL FOR FRANCHISEES BUT ONE MIDWESTERN FRANCHISEE WHO SAYS THE COST OF RECOMMENDED NEW DISPENSING EQUIPMENT IS AS MUCH AS 10000 PER RESTAURANT FEARS THAT BURGER KING MAY MAKE LIFE MISERABLE FOR FRANCHISEES WHO DON'T GO ALONG BURGER KING AND ITS FRANCHISEES HAVE YET TO AGREE ON A PROCESS FOR EVALUATING SOFTDRINK QUALITY SAYS FRANCHISEE RICHARD D FORS IN BUFFALO NY BRIEFS FOR THE FIRST TIME SINCE THE 1950S THE TERMINIX INTERNATIONAL UNIT OF SERVICEMASTER LP IS SEEKING NEW FRANCHISEES FOR ITS PESTCONTROL SERVICES TERMINIX THUS AIMS TO EXPAND INTO MANY MORE SMALL CITIES STANLEY WORKS HAS AGREED TO SELL THE FRANCHISING OPERATIONS OF ITS TAYLOR RENTAL CORP EQUIPMENTRENTAL UNIT TO SERVISTAR CORP IN A TRANSACTION EXPECTED TO CLOSE JUNE 30 9306210020 930621 MULTIMEDIA FILM EXECUTIVE BETS ON INTERACTIVE MEDIA BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD TAKING A STEP THAT MAY BECOME COMMONPLACE A TOP HOLLYWOOD MOVIE EXECUTIVE HAS DECIDED TO LEAVE IT ALL BEHIND TO PLACE HIS BETS ON THE FUTURE OF INTERACTIVE MULTIMEDIA STRAUSS ZELNICK PRESIDENT AND CHIEF OPERATING OFFICER OF NEWS CORP'S TWENTIETH CENTURY FOX FILM UNIT WILL JOIN CRYSTAL DYNAMICS INC A STARTUP SOFTWARE COMPANY AS PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE JUNE 30 THE 35YEAROLD MR ZELNICK WILL LEAVE BEHIND 1200 EMPLOYEES AND A DIVISION WITH REVENUE CLOSE TO 2 BILLION PLUS THE GLAMOUR OF BEING A MOVIE EXECUTIVE TO TAKE COMMAND OF 28 COMPUTER PROGRAMMERS AND VIDEO GAME CREATORS AT A COMPANY IN PALO ALTO CALIF THAT HAS YET TO INTRODUCE A PRODUCT MUCH LESS EARN A PROFIT BUT MR ZELNICK'S FLIGHT TO SILICON VALLEY REFLECTS A WIDELY HELD BELIEF HERE THAT THE CURRENT MOTION PICTURE AND TELEVISION INDUSTRIES ARE MATURE BUSINESSES AND THAT THE CUTTING EDGE OF ENTERTAINMENT LIES IN NEW TECHNOLOGIES NOT JUST DELIVERY OF MOVIES ON DEMAND BUT VIDEO GAMES AND PERHAPS NEW FORMS OF INTERACTIVE ENTERTAINMENT I DON'T WANT TO SOUND LIKE I THINK I'M SOME TRENDSETTER SAYS MR ZELNICK BUT I KNOW THERE WILL BE OTHERS THERE'S JUST TOO MUCH GROWTH AND OPPORTUNITY OUT THERE AND THE UNDERLYING ECONOMICS OF THE BUSINESS ARE MUCH BETTER CRYSTAL DYNAMICS IS IN SOME WAYS A TYPICAL SILICON VALLEY STARTUP WHERE RUMPLED YOUNG ADULTS WITH STOCK OPTIONS PULL ALLNIGHTERS TO MEET DEADLINES OUR CORPORATE CULTURE IS THAT SOMETIMES WE HAVE THREE MEALS A DAY OUT OF OUR LITTLE MICROWAVE OVEN SAYS JUDY LANGE CURRENT PRESIDENT SHE BOUGHT A HOUSE NEAR THE OFFICE WHICH WAS DUBBED THE RANCH AND SERVES AS A CRASH PAD FOR WEARY GAME DEVELOPERS ON HALLOWEEN THE STAFF WENT BOWLING USING PUMPKINS FOR PINS THEN ENTER STRAUSS SAYS MS LANGE MR ZELNICK WHO HAD BEEN OVERSEEING FOX'S FLEDGLING STEPS IN THE MULTIMEDIA BUSINESS VISITED SEVERAL SOFTWARE COMPANIES TO GET IDEAS THERE WAS SOME TREPIDATION AT CRYSTAL DYNAMICS ABOUT TOO MUCH CONTACT WITH HOLLYWOOD TYPES BUT MR ZELNICK MANAGED TO SHOOT DOWN THE STEREOTYPES HE ATTENDED A COMPANY BARBECUE TO MEET THE STAFF LAST SPRING AFTER HAVING TALKED TO THE THREE PRINCIPALS OF THE COMPANY HE LEFT HIS TIE IN HIS CAR ROLLED UP HIS SLEEVES AND WENT FROM TABLE TO TABLE MEETING EVERY EMPLOYEE THEY ALL INTERVIEWED ME SAYS MR ZELNICK I THINK THEY WERE AFRAID I WAS A FERRARIDRIVING SPAGOEATING PERRIERSWILLING TYPE WHO WORE ITALIAN SUITS HE DOES HE CONFESSES WEAR ITALIAN SUITS IN FACT SINCE MR ZELNICK PRESENTS SUCH A WELLPOLISHED PACKAGE ONE OF HIS ROLES AT CRYSTAL DYNAMICS WILL BE AS SPOKESMAN HE OFTEN SPEAKS AT HOLLYWOOD FUNCTIONS AND SERVES ON INDUSTRY PANELS HE'S THE KIND OF GOLDPLATED WUNDERKIND WHO DRIVES SOME OLDSCHOOL HOLLYWOOD VETERANS UP THE WALL GRADUATING SUMMA CUM LAUDE FROM WESLEYAN ARMED WITH A MASTER'S DEGREE IN BUSINESS ADMINISTRATION AND A LAW DEGREE FROM HARVARD AND MARRIED TO A MEMBER OF THE WEALTHY BELZBERG FAMILY MR ZELNICK WAS BARELY 30 WHEN HE WAS NAMED PRESIDENT OF VESTRON VIDEO THEN THE LARGEST INDEPENDENT HOME VIDEO COMPANY IN THE US HE MOVED TO FOX IN 1989 WHERE HE RAN THE BUSINESS AND ADMINISTRATIVE SIDE OF THE MOTION PICTURE ACTIVITIES OF THE STUDIO REPORTING TO JOE ROTH WHO ALSO RAN THE CREATIVE SIDE MR ZELNICK PRESIDED OVER A STREAMLINING OF FOX'S DISTRIBUTION SYSTEM AND A CONSOLIDATION OF ITS HOME VIDEO UNIT MR ZELNICK WILL SAY ONLY THAT HE LEAVES FOX AMICABLY BUT EVEN THOUGH HE SIGNED A NEW THREEYEAR CONTRACT LAST JANUARY HIS PROSPECTS FOR FURTHER ADVANCEMENT AT FOX WERE LIMITED SAY INDUSTRY EXECUTIVES WHEN MR ROTH LEFT FOX LAST YEAR THE CHAIRMAN'S JOB WENT TO PETER CHERNIN A FORMER FOX TV EXECUTIVE WHILE NEWS CORP CHAIRMAN RUPERT MURDOCH CONTINUED A PROCESS OF ASSUMING EVERTIGHTER CONTROL OVER THE STUDIO MR MURDOCH IS KNOWN TO DEPEND FOR STRATEGIC ADVICE ON CHASE CAREY FOX INC EXECUTIVE VICE PRESIDENT AS OFTEN HAPPENS AFTER LEADERSHIP CHANGES AT STUDIOS MANY FEEL IT WILL TAKE TIME FOR FOX'S MOVIEMAKING RHYTHM TO RETURN MEANWHILE MR ZELNICK MAY HAVE FELT AS OTHER EXECUTIVES ON THE BUSINESS SIDE OF STUDIOS CAN FEEL WHEN THE MOVIES WORK THEY DON'T GET THE CREDIT IT'S RARE IN SOME QUARTERS IN HOLLYWOOD TO RELEASE AN EXECUTIVE FROM A CONTRACT WHEN THE INK IS BARELY DRY BUT IT REFLECTS MR MURDOCH'S BELIEF THAT EVERYBODY IS REPLACEABLE A TRAIT HE DISPLAYED IN ALLOWING MR ROTH AND SEVERAL OTHER EXECUTIVES INCLUDING FORMER FOX CHAIRMAN BARRY DILLER TO LEAVE AND AT LEAST MR ZELNICK WASN'T JOINING ANOTHER STUDIO I'VE ALWAYS WANTED TO BE AN ENTREPRENEUR MR ZELNICK SAYS AND IT'S FRUSTRATING YOU CAN'T HAVE YOUR OWN MOVIE COMPANY UNLESS YOU'RE A PRODUCER MR ZELNICK ISN'T THE FIRST MOVIE EXECUTIVE TO TRADE HOLLYWOOD FOR THE TECHNOLOGICAL FUTURE MR DILLER BECAME CHAIRMAN OF HOMESHOPPING CHANNEL QVC NETWORK INC LAST YEAR AND GORDON STULBERG A FORMER TOP EXECUTIVE AT BOTH FOX AND COLUMBIA STUDIOS IN THE 1970S NOW IS CHAIRMAN OF PHILIPS INTERACTIVE MEDIA INTERNATIONAL WHICH CREATES SOFTWARE FOR PHILIPS ELECTRONICS NV'S INTERACTIVE COMPACT DISK SYSTEM CDI BUT HE DOES BELIEVE IN INTERACTIVE GAMES NOW A 5 BILLION INDUSTRY IN THE US ALONE CRYSTAL DYNAMICS FOUNDED JUST A YEAR AGO AND FUNDED BY ESTABLISHED SILICON VALLEY VENTURE CAPITALISTS IS DEVISING GAMES FOR NEW 32BIT SYSTEMS THAT HAVEN'T EVEN HIT THE MARKET YET A BIT IS A UNIT OF DIGITAL INFORMATION THE ORIGINAL NINTENDO CO GAME MACHINES PROCESSED EIGHT BITS OF INFORMATION AT A TIME NEWER 16BIT SYSTEMS HAVE MARKEDLY IMPROVED MEMORY RESOLUTION AND GRAPHIC CAPABILITIES NINTENDO AND RIVAL SEGA LTD ARE WORKING ON A 32BIT SYSTEM BUT FIRST TO HIT THE MARKET WILL BE A PANASONIC MACHINE FROM MATSUSHITA ELECTRIC INDUSTRIAL CO THAT USES TECHNOLOGY DEVELOPED BY 3DO CO ITS FIRST TWO PRODUCTS CRASH 'N BURN A RACECAR GAME AND TOTAL ECLIPSE A SPACE COMBAT SIMULATOR WILL BE AMONG 3DO'S FIRST TITLES THIS AUTUMN BUT IF 3DO DOESN'T FLY THERE IS SOME CONCERN ABOUT THE SYSTEM'S 700 PRICE CRYSTAL DYNAMICS WILL BE READY FOR OTHER 32BIT SYSTEMS MS LANGE AND THE COMPANY'S THIRD PRINCIPAL MADELINE CANEPA ARE FORMER SEGA MARKETING EXECUTIVES MR ZELNICK SAYS THAT THE CREATIVE SIDE OF THE INTERACTIVE GAME BUSINESS IS AT THE STAGE OF THE KEYSTONE COPS BUT BY THE 1930S A VERNACULAR HAD BEEN DEVELOPED FOR MOVIE STORYTELLING ONE THAT HAS CONTINUED UNTIL TODAY GAMES NEED THAT HE SAYS THAT'S WHERE PROFESSIONAL ENTERTAINMENT EXECUTIVES LIKE MR ZELNICK COME IN HIS VISION OF A COMPANY LIKE CRYSTAL DYNAMICS ISN'T TOO DIFFERENT FROM THAT OF A MODERN MOVIE STUDIO A LARGE GAME PURVEYOR LIKE A STUDIO COULD BECOME A DISTRIBUTION COMPANY THAT GIVES SEED MONEY TO OUTSIDE DEVELOPERS TO COME UP WITH IDEAS OR SCRIPTS THEN FINANCES PRODUCTION AND DISTRIBUTES PRODUCTS WORLDWIDE IN AS MANY MEDIA AS POSSIBLE MR ZELNICK'S HOLLYWOOD CONTACTS WILL HELP CRYSTAL DYNAMICS GAIN ACCESS TO TALENT AND INDUSTRY ANALYSTS SAY THAT THE COMPANY MAY TAKE ON A STRATEGIC PARTNER POSSIBLY A HOLLYWOOD STUDIO BUT MR ZELNICK CAUTIONS THAT SIMPLY LICENSING A POPULAR MOVIE FOR VIDEO GAMES DOESN'T WORK A GAME WITH ALL THE FANCY SPECIAL EFFECTS AND STAR POWER OF A HIT MOVIE STILL WON'T WORK IF THE ESSENCE OF THE GAME IS THE SAME OLD GRUNTING AND PUNCHANDKICK 9306210019 930621 BUSINESS BRIEF FLEET FINANCIAL SEEKS 'MERGER OF EQUALS' TO LOWER COSTS WHILE INCREASING CLOUT NEW YORK FLEET FINANCIAL GROUP INC SAID IT MAY JOIN FORCES WITH AN EQUALSIZED BANKING CONCERN IN 1994 OR 1995 IN A MERGER THAT ANALYSTS SAID COULD CUT OVERHEAD COSTS OF THE COMBINED COMPANIES WHILE EXPANDING THEIR OPERATIONS PNC BANK CORP PITTSBURGH AND FIRST UNION CORP CHARLOTTE NC WERE NAMED BY ANALYSTS AS POSSIBLE CANDIDATES FOR A MERGER OF EQUALS WITH FLEET BASED IN PROVIDENCE RI SOUTHEASTERN STATES' BANKING LAWS HOWEVER CURRENTLY DON'T ALLOW BANKS OPERATING IN THE REGION TO MERGE WITH THOSE OUTSIDE IT PRECLUDING A MARRIAGE OF FIRST UNION AND FLEET THE POTENTIAL FOR A MERGER WAS DISCLOSED BY FLEET CHIEF EXECUTIVE TERRENCE MURRAY THURSDAY NIGHT AT A DINNER HERE HONORING FLEET'S OUTGOING CHIEF FINANCIAL OFFICER JOHN FLYNN AND FORMALLY INTRODUCING HIS SUCCESSOR EUGENE MCQUADE FLEET OFFICIALS ALSO DISCLOSED THAT THE COMPANY EXPECTS TO COMPLETE TWO OR THREE SMALL ACQUISITIONS BY THE END OF 1993 FLEET WHICH HAD ASSETS OF 449 BILLION AS OF MARCH 31 IS NEW ENGLAND'S LARGEST BANKING CONCERN IN A MERGER OF EQUALS IT MIGHT CUT COSTS BY 8 TO 10 BY ELIMINATING REDUNDANCIES IN THE COMBINED COMPANIES SAID GERARD CASSIDY AN ANALYST WITH TUCKER ANTHONY INC BUT THE MAIN GOAL OF SUCH A MERGER WOULD BE TO EXPAND ITS MARKET HE ADDED A MERGER TODAY DOUBLING FLEET'S ASSETS WOULD MAKE THE RESULTING COMPANY THE NATION'S SEVENTHLARGEST BANKING CONCERN A PNC SPOKESMAN SAID THE COMPANY DOESN'T COMMENT ON MERGER RUMORS A FIRST UNION SPOKESMAN SAID WE'VE HAD ABSOLUTELY NO DISCUSSIONS WITH FLEET NOR IS THERE ANY INDICATION OF ANY INTEREST BY EITHER PARTY IN A MERGER AT THE HONORARY DINNER FLEET OFFICIALS ALSO SAID FLEET IS ON TRACK TO MEET WALL STREET EARNINGS ESTIMATES OF BETWEEN 275 AND 3 A SHARE FOR 1993 LAST YEAR FLEET EARNED 280 MILLION OR 178 A SHARE FLEET OFFICIALS FURTHER DISCLOSED THAT THE COMPANY HAS SET A LONGTERM TARGET FOR RETURN ON AVERAGE ASSETS OF BETWEEN 130 AND 150 COMPARED WITH THE CURRENT 100 AND THAT IT PLANS TO ANNOUNCE AN EFFICIENCY PLAN LATER THIS SUMMER THAT COULD INVOLVE LAYOFFS ANALYSTS SAID FLEET PROBABLY WON'T REPORT CHARGES AGAINST EARNINGS AS IT CUTS COSTS LATER THIS YEAR THE COMPANY IS EXPECTED TO OFFSET CHARGES STEMMING FROM WORKFORCE REDUCTIONS WITH GAINS FROM SECURITIES SALES OR OTHER TRANSACTIONS MOREOVER ACQUISITIONS ARE EXPECTED TO CONTRIBUTE TO COST SAVINGS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING FRIDAY FLEET CLOSED AT 31625 DOWN 625 CENTS 9306210018 930621 TECHNOLOGY BY JOHN R WILKE OFFSET PRINTERS THAT USE DIGITAL TECHNOLOGY TO RUN AT HIGH SPEED IN FULL COLOR ARE POISED TO MAKE A BIG IMPRESSION INDIGO BASED IN ISRAEL WILL BRING OUT A DIGITAL COLOR PRESS LATE THIS YEAR AND EXPECTATIONS ARE HIGH THE COMPANY LAST WEEK QUIETLY SOLD A 50 MILLION MINORITY STAKE TO THE NEW YORK INVESTOR GEORGE SOROS INDIGO'S SYSTEM IS FULLY DIGITAL IT USES COMPUTER INPUT NOT FILM OR PLATES YET THE COMPANY SAYS IT TURNS OUT 33 FULLCOLOR LETTERSIZE SHEETS A MINUTE WITH MUCH BETTER QUALITY THAN COLOR COPIERS OR LASER PRINTERS THE FASTEST OF WHICH NOW PRODUCE ABOUT EIGHT SHEETS A MINUTE PEOPLE HAVE BEEN TRYING TO DO THIS FOR A LONG TIME SAYS JONATHAN SEYBOLD AN ANALYST IN MALIBU CALIF DEMAND IS GOING TO BE ENORMOUS THE 250000 SYSTEM WHICH RUNS ALMOST SILENTLY IS BASED ON A HYBRID LASER AND LIQUIDINK TECHNOLOGY ITS SECRET IS AN ELECTRICALLY CHARGED INK THAT UNLIKE TONERBASED LASER PRINTERS PRINTS ON ANY PAPER EVEN COATED STOCK MOST IMPORTANT IT CAN PRINT A NEW IMAGE WITH EACH ROLL OF ITS DRUM TO PRINT 1000 COPIES OF A 100PAGE BOOK IT PRINTS THE ENTIRE 100 PAGES IN ORDER THEN STARTS ON THE NEXT 100 THE SYSTEM STORES THE IMAGE FOR EACH PAGE ELECTRONICALLY AND CAN CALL EACH UP AS NEEDED WHILE A TRADITIONAL PRESS HAS A PHYSICAL PLATE THAT PRINTS THE SAME IMAGE SHEET AFTER SHEET INDIGO'S SYSTEM IS BEST SUITED TO SHORTRUN COLOR JOBS SUCH AS CUSTOM BOOKS OR MARKETING BROCHURES IN QUANTITIES OF MORE THAN 100 AND LESS THAN 10000 FOR LARGER RUNS CONVENTIONAL OFFSET COLOR PRINTING IS STILL CHEAPER ANALYSTS SAY FOR FEWER COPIES COLOR PHOTOCOPIERS ARE BETTER FRANK ROMANO A PROFESSOR AT ROCHESTER INSTITUTE OF TECHNOLOGY SAYS INDIGO'S APPROACH GIVES THE COMPANY A PHENOMENAL ADVANTAGE IN SHORTRUN COLOR THE AREA OF STRONGEST FUTURE GROWTH TWO BIG US PRINTERS MOORE CORP AND DELUXE CORP SAY THEY HAVE ORDERED INDIGO SYSTEMS A MOORE EXECUTIVE SAYS IT WILL CUT THE COST OF SOME SHORTRUN JOBS IN HALF ANOTHER DIGITAL PRESS IS EXPECTED FROM XEIKON A BELGIAN COMPANY EARLY NEXT YEAR THE COMPANY WON'T DISCLOSE DETAILS UNTIL WEDNESDAY BUT ANALYSTS SAY ITS PRESS WILL USE DRYTONER TECHNOLOGY AND WILL TURN OUT 35 FULLCOLOR SHEETS A MINUTE INDIGO AND XEIKON ARE LIKELY TO FACE COMPETITION FROM IMAGING GIANTS XEROX AND CANON ARE BOTH WORKING ON HIGHERSPEED COLOR COPIERS CANON LAST MONTH SHOWED A PROTOTYPE THAT TURNS OUT 30 COLOR COPIES A MINUTE BUT IT ISN'T EXPECTED TO REACH MARKET FOR AT LEAST A YEAR ANDREW BARRON A HARVARD UNIVERSITY CHEMIST SAYS THE SIMPLEST SOLUTIONS OFTEN ARE THE MOST ELEGANT SO IT WAS THAT A SHARP MICROWAVE OVEN WAS CARTED INTO HIS LAB FROM A STUDENT LOUNGE WHERE IT HAD BEEN USED MOSTLY FOR PIZZA AND PROF BARRON BEING BRITISH THE OCCASIONAL KIDNEY PIE IN AN OTHERWISE SOBER SCIENTIFIC PAPER IN LAST WEEK'S ISSUE OF THE JOURNAL SCIENCE THE PROFESSOR AND A STUDENT CHRISTOPHER LANDRY REPORT THAT THEY USED THIS COMMON KITCHEN APPLIANCE TO SYNTHESIZE POLYCRYSTALLINE COPPER INDIUM SULFIDES COMPOUNDS USED IN SEMICONDUCTORS SUCH AS THE ONES IN SOLAR CELLS USUALLY THESE MATERIALS MUST BE PREPARED IN PRESSURIZED LAB OVENS AT EXTREMELY HIGH TEMPERATURES WE FOUND WE COULD DO IT IN ABOUT THREE MINUTES COMPARED WITH OVER 12 HOURS WITH THE CONVENTIONAL LAB APPARATUS PROF BARRON SAYS AFTER THE MICROWAVE IS SWITCHED ON THE METALLIC POWDER INSIDE GLOWS A BRIGHT BEAUTIFUL ELECTRIC BLUE AS A SULFUR PLASMA FORMS PROF BARRON SAYS AND THE RESULTING COMPOUNDS SHARE MANY PROPERTIES OF THOSE COOKED THE LONG WAY THE TECHNIQUE NOW BEING TRIED ON MORE EXOTIC SEMICONDUCTOR COMPOUNDS HAS BEEN FUNDED BY THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION NEW MOTIONPICTURE CAMERA TECHNOLOGY CAPTURES CRISP THREEDIMENSIONAL IMAGES THAT CAN BE VIEWED ON STANDARD TV OR MOVIE SCREENS WITHOUT 3D GLASSES OR ANY OTHER SPECIAL EQUIPMENT THE SYSTEM WAS USED IN A MCDONALD'S COMMERCIAL THAT RAN RECENTLY IN FIVE TEST MARKETS ITS DEVELOPER VISION III IMAGING OF HERNDON VA SAYS IT IS IN TALKS WITH A MOVIE STUDIO AND A NETWORK BROADCASTER WHICH WANTS TO TRY IT OUT IN A NATIONALLY TELECAST FOOTBALL GAME IN AUGUST THE CAMERA USES PARALLAX TECHNOLOGY IN WHICH THE LENS MOVES SEVERAL TIMES A SECOND ALONG AN ARC ABOUT 20 MILLIMETERS ACROSS THE CAMERA VIBRATES IN EFFECT WHILE STAYING FOCUSED ON THE SAME VISUAL FIELD SO THE VIEWER CAN'T DETECT THE MOTION BY CAPTURING A SCENE FROM SLIGHTLY DIFFERENT ANGLES IN RAPIDFIRE FASHION THE TECHNIQUE CREATES AN ILLUSION OF DEPTH IT'S AKIN TO DEPTH PERCEPTION IN ORDINARY VISION WHICH ARISES FROM HAVING TWO EYES THE 3D EFFECT DOESN'T ALWAYS COME THROUGH HOWEVER THERE'S AN ART TO USING IT SAYS NORRIS NELSON A VETERAN LEO BURNETT PRODUCER WHO DID THE MCDONALD'S AD IF YOU SHOOT ACROSS AN OPEN FIELD YOU DON'T REALLY SEE IT BUT IF THE COMPOSITION OF THE SHOT HAS DISTANCE CUES SHOWING SUBJECTS IN A FOREGROUND FOR EXAMPLE IT'S SENSATIONAL THE MCDONALD'S AD WHICH FINDS TWO HUNGRY CLIMBERS ON A ROCKY PINNACLE APPEARS CLEARLY THREEDIMENSIONAL WHEN THE SUBJECTS ARE FRAMED BY A DISTANT VALLEY IN A BURGER CLOSEUP THE EFFECT IS LARGELY LOST THOUGH THE IMAGE LOOKS SHARPER EVEN THE BEST PARALLAX IMAGES DON'T LEAP OFF THE SCREEN AS THEY SEEM TO IN 3D SYSTEMS THAT REQUIRE GLASSES FOR VIEWERS BUT BROADCASTERS SAY CONSUMER RESISTANCE TO THE GLASSES IS INSURMOUNTABLE COLORFAX A WINDOWS PROGRAM FROM BLACK ICE SOFTWARE AMHERST NH LETS USERS SEND FULLCOLOR IMAGES BETWEEN PCS IT COSTS 99 AND WORKS VIA FAX MODEMS MICROTEK INTERNATIONAL TORRANCE CALIF OFFERS A 399 BUSINESSCARD READER IT SCANS THE NAME COMPANY TITLE PHONE AND OTHER INFORMATION ON THE CARD AND STORES IT ALL ON YOUR PC 9306210017 930621 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AAMES FINANCIAL CORP 22 MILLION SHARES 14 MILLION BY THE COMPANY VIA PRUDENTIAL ABT BUILDING PRODUCTS CORP INITIAL 28 MILLION SHARES VIA MERRILL LYNCH AER ENERGY RESOURCES INC INITIAL 25 MILLION SHARES VIA PRUDENTIAL AQUARION CO 400000 SHARES VIA SMITH BARNEY BRADLEY REAL ESTATE TRUST 55 MILLION SHARES VIA KIDDER PEABODY BRIDAS ENERGY CORP INITIAL 75 MILLION SHARES VIA BEAR STEARNS AND SMITH BARNEY BROADBAND TECHNOLOGIES INC INITIAL 28 MILLION SHARES VIA BEAR STEARNS BUFFEST INC SECONDARY 125 MILLION SHARES VIA PIPER JAFFRAY CONCURRENT COMPUTER CORP SECONDARY 143 MILLION SHARES VIA SALOMON BROTHERS EDMARK CORP 250000 COMMON SHARES VIA PIPER JAFFRAY ELECTROGLASS INC INITIAL 62 MILLION SHARES VIA LEHMAN ESPIRITO SANCTO FINANCIAL HOLDINGS SA INITIAL TWO MILLION ADR SHARES VIA MERRILL LYNCH FLIR SYSTEMS INC INITIAL 23 MILLION COMMON SHARES VIA HAMBRECHT & QUIST FRANKLIN QUEST CO 283 MILLION SHARES VIA MERRILL LYNCH HOLLYWOOD PARK FOUR MILLION SHARES VIA OPPENHEIMER LORAL CORP SECONDARY THREE MILLION SHARES VIA LEHMAN BROTHERS NEW JERSEY HIGHWAY AUTHORITY 1167 MILLION 1993 SERIES SENIOR PARKWAY REVENUE REFUNDING BONDS FOR GARDEN STATE PARKWAY VIA COMPETITIVE BIDDING PUERTO RICO 700 MILLION PUBLICIMPROVEMENT REFUNDING GENERAL OBLIGATION BONDS VIA A LEHMAN BROTHERS GROUP ROBBINSDALE MINN 100 MILLION HOSPITAL REVENUE REFUNDING BONDS VIA A PIPER JAFFRAY INC GROUP SEATTLE WASH 465 MILLION MUNICIPAL LIGHT AND POWER REVENUE REFUNDING BONDS VIA A LEHMAN BROTHERS GROUP 9306210016 930621 BUSINESS BRIEF TABACALERA SA SALE OF 50 OF TOBACCO UNIT TO RJR NEARS COMPLETION THE CHAIRMAN OF TABACALERA SA SPAIN'S STATERUN TOBACCO MONOPOLY SAID THE SALE OF 50 OF ITS GRUPO ROYAL BRANDS SA SUBSIDIARY TO RJ REYNOLDS TOBACCO INTERNATIONAL INC A UNIT OF RJR NABISCO HOLDINGS CORP SHOULD BE COMPLETED IN TWO OR THREE WEEKS TABACALERA WILL CREATE A JOINT VENTURE RJR ALIMENTACION SL TO HOLD ROYAL BRANDS AND THE US COMPANY WILL PAY TABACALERA 1725 BILLION PESETAS 136 MILLION FOR A 50 STAKE IN THE HOLDING THE VENTURE WILL PRODUCE DISTRIBUTE AND MARKET THE REYNOLDS CIGARETTE BRANDS CAMEL AND WINSTON BOTH OF WHICH TABACALERA HAS PRODUCED UNDER LICENSE IN SPAIN FOR THE PAST DECADE THE STATEMENT BY TABACALERA CHAIRMAN GERMAN CALVILLO FRIDAY SENT TABACALERA SHARES UP 30 PESETAS TO 3740 PESETAS 2949 HE SAID THE DEAL ONLY LACKED APPROVAL BY THE SPANISH GOVERNMENT CABINET WHICH WAS EXPECTED WITHIN WEEKS A SPOKESMAN FOR RJR NABISCO IN NEW YORK DECLINED TO COMMENT 9306210015 930621 WHO'S NEWS CARNIVAL CRUISE LINES INC CARNIVAL CRUISE LINES INC MIAMI VICKI FREED FORMERLY THIS CRUISE COMPANY'S DIRECTOR OF SALES FOR THE WESTERN US WAS NAMED SENIOR VICE PRESIDENT SALES AND MARKETING MS FREED 36 YEARS OLD SUCCEEDS BOB DICKINSON WHO WAS RECENTLY NAMED PRESIDENT AND CHIEF OPERATING OFFICER 9306210014 930621 MEDIA TIME WARNER TO SET BIG FEE FOR ITS ADVISER BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK TIME WARNER INC PLANS TO PAY AN UNUSUALLY GENEROUS FEE TO ITS CONTROVERSIAL CHIEF OUTSIDE INVESTMENT ADVISER ODED ED ABOODI FOR HIS ROLE IN SEALING THE 25 BILLION INVESTMENT BY U S WEST INC IN THE ENTERTAINMENT AND CABLETELEVISION GIANT ACCORDING TO PEOPLE FAMILIAR WITH THE ARRANGEMENT MR ABOODI'S ALPINE CAPITAL GROUP MAY NET ABOUT 30 MILLION FOR ITS WORK ON THE TRANSACTION WHICH GIVES U S WEST A 25 STAKE IN TIME WARNER'S ENTERTAINMENT AND CABLE UNITS A SPOKESMAN FOR TIME WARNER DENIED THE 30 MILLION FIGURE HE SAID THE FEE WILL BE FAR LESS AND THAT THE COMPANY AND MR ABOODI ARE STILL WORKING OUT THE DETAILS TIME WARNER HASN'T DISCLOSED THE FEE IN FEDERAL FILINGS RELATING TO THE U S WEST DEAL AND SAID IT ISN'T REQUIRED TO DO SO MR ABOODI DIDN'T RETURN CALLS SEEKING COMMENT MR ABOODI'S ARRANGEMENTS WITH TIME WARNER HAVE LONG BEEN THE SUBJECT OF INTENSE INTEREST AND CONTROVERSY HE WAS A CLOSE ADVISER AND PERSONAL FRIEND TO THE LATE CHAIRMAN STEVEN J ROSS SERVING AS TIME WARNER'S PRIVATE INHOUSE INVESTMENT BANKER AND COLLECTING MILLIONS OF DOLLARS A YEAR IN UNDISCLOSED FEES AT THE SAME TIME TIME WARNER PAID MR ABOODI AND OTHER ALPINE EMPLOYEES SIXFIGURE SALARIES STOCK OPTIONS AND GENEROUS BENEFITS AS EMPLOYEES OF TIME WARNER GERALD M LEVIN IN A MOVE TO UNDO SOME OF THE MORE UNCONVENTIONAL BUSINESS ARRANGEMENTS THAT MARKED THE ROSS ERA ENDED THE EMPLOYMENT AND BENEFIT ARRANGEMENTS AFTER HE BECAME CHAIRMAN IN JANUARY BUT SAID MR ABOODI WOULD CONTINUE AS ITS FOREMOST OUTSIDE ADVISER UNDER A NEW LONGTERM ARRANGEMENT TIME WARNER INSIDERS SAY MR ABOODI'S INTIMATE KNOWLEDGE OF THE COMPANY AND HIS CONTINUOUS ROLE IN THE COMPANY'S AFFAIRS PROVIDE AN ADDED VALUE THAT OUTSIDE INVESTMENT BANKERS CAN'T MATCH FOR EXAMPLE MR ABOODI WILL HELP SET UP THE OPERATIONAL STRUCTURES THROUGH WHICH TIME WARNER AND U S WEST A TELECOMMUNICATIONS COMPANY IN ENGLEWOOD COLO WILL WORK TOGETHER PARTICULARLY IN THE AREA OF UPGRADING AND COMANAGING TIME WARNER'S VAST CABLE OPERATIONS THOUGH INVESTMENT BANKERS OFTEN NEGOTIATE THEIR FEES DEPENDING ON THE WORK DONE IN A TRANSACTION TYPICALLY FEES FOR ARRANGING MERGERS ACQUISITIONS AND EQUITY INVESTMENTS ARE IN THE AREA OF ONEHALF OF ONE PERCENT OF THE TOTAL VALUE AN INVESTMENT BANKER AT ONE MAJOR WALL STREET FIRM SAID HE WOULD BE HARD PRESSED TO REMEMBER WHEN AN ADVISER COLLECTED AN EIGHTFIGURE FEE FOR MERGERS AND ACQUISITION WORK AND ASSERTED THAT MOST MAJOR WALL STREET FIRMS WOULD HAVE DONE THE TIME WARNER WORK FOR LESS THAN 10 MILLION A FEE IN THE 30 MILLION RANGE WOULD BE ALL THE MORE UNUSUAL BECAUSE ALPINE DID NOT FIND THE U S WEST INVESTMENT FOR TIME WARNER BUT ONLY ACTED AS AN ADVISER IN STRUCTURING THE TERMS OF THEIR AGREEMENT TIME WARNER HAD BEEN DISCUSSING POSSIBLE STRATEGIC ALLIANCES DIRECTLY WITH A NUMBER OF HIGHTECH FIRMS INCLUDING U S WEST WITH WHICH IT ALREADY HAD BUSINESS TIES SHEARSON LEHMAN BROS INC A UNIT OF AMERICAN EXPRESS CO WHICH ADVISED U S WEST IS REPORTEDLY COLLECTING A 7 MILLION TO 10 MILLION FEEMORE IN LINE WITH THE GOING RATE BOTH SHEARSON AND U S WEST DECLINED TO DISCUSS FEES THE FEES IN THE U S WEST DEAL HAVE BEEN THE SUBJECT OF CONSIDERABLE SPECULATION ON WALL STREET WITH SOME RIVAL FIRMS ALLEGING THAT FEES PAID IN THE DEAL TO INVESTMENT BANKERS AND ATTORNEYS TOTALED MORE THAN 100 MILLION WITH THE LARGEST SHARE GOING TO ALPINE OTHERS HAVE SUGGESTED THE FEES TO ALPINE WILL BE NO MORE THAN 20 MILLION STILL HIGH BY WALL STREET STANDARDS TO THE FRUSTRATION OF MANY OTHER WALL STREET FIRMS WHO WORKED FOR TIME WARNER IN THE PAST TIME WARNER HAS RELIED ALMOST EXCLUSIVELY ON MR ABOODI FOR INVESTMENT ADVICE USING LARGER WALL STREET FIRMS TO UNDERWRITE AND SELL SECURITIES SOME TIME WARNER INSIDERS SUGGESTED THAT THEIR COMPLAINTS ABOUT ALLEGED ASTRONOMICAL FEES PAID TO ALPINE ARE JUST SOUR GRAPES 9306210013 930621 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ADVANCED SURGICAL INC AN INITIAL OFFERING OF 15 MILLION SHARES AND AN EQUAL NUMBER OF REDEEMABLE WARRANTS ALOHA AIRGROUP INC AN INITIAL OFFERING OF 42 MILLION SHARES OF STOCK VIA GOLDMAN SACHS & CO AMERICAN ANNUITY GROUP INC AN OFFERING OF 85 MILLION OF FIXED RATE SENIOR NOTES DUE 2001 VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP 9306210012 930621 TAMBRANDS INC IS SAID TO MULL A POSSIBLE SALE JOHNSON & JOHNSON IS SEEN AS A PROSPECTIVE BUYER SEARCH IS ON FOR A CEO BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL THE BOARD OF TROUBLED TAMBRANDS INC IS QUIETLY EXPLORING A POSSIBLE SALE OF THE COMPANY ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION AMONG THE COMPANIES SAID TO BE INTERESTED IN ACQUIRING THE MAKER OF TAMPAX TAMPONS IS DRUG AND PERSONAL PRODUCTS MAKER JOHNSON & JOHNSON WHICH ANALYSTS SAY HAS BEEN SEEKING ACQUISITIONS IN THE OVERTHECOUNTER CONSUMERPRODUCTS MARKET JOHNSON & JOHNSON IS A SMALL PLAYER IN THE TAMPON MARKET IN 1988 IT TRIED TO BUY TAMBRANDS' CHIEF COMPETITOR NO 2RANKED PLAYTEX FAMILY PRODUCTS INC THOSE TALKS ENDED FOR UNDISCLOSED REASONS JOHNSON & JOHNSON DECLINED TO COMMENT A SPOKESMAN FOR TAMBRANDS WHICH HAS A MARKET VALUE OF ABOUT 16 BILLION DECLINED TO COMMENT HOWARD WENTZ JR THE OUTSIDE DIRECTOR WHO BECAME CHAIRMAN AFTER MARTIN FC EMMETT WAS OUSTED THIS MONTH HAS REFUSED REPEATEDLY TO DISCUSS THE COMPANY'S PLANS THE COMPANY HAS SAID VERY LITTLE SINCE THE SURPRISE DISMISSAL OF MR EMMETT AS CHAIRMAN AND CHIEF EXECUTIVE AND THE DISCLOSURES THAT SECONDQUARTER EARNINGS WOULD BE SIGNIFICANTLY BELOW LAST YEAR'S AND FULLYEAR EARNINGS WOULD ALSO BE LOWER THAN THE PREVIOUS YEAR'S TAMBRANDS HAD PROJECTED 15 EARNINGS GROWTH THE WHITE PLAINS NY COMPANY ATTRIBUTED THE SHORTFALL TO A REDUCTION OF INVENTORY INCREASED MARKETING EXPENDITURES AND COMPETITIVE PRESSURES IN LAST YEAR'S SECOND QUARTER THE COMPANY HAD NET INCOME OF 72 CENTS A SHARE FOR ALL OF 1992 IT EARNED 306 A SHARE THE TAMBRANDS SPOKESMAN SAID ONLY THAT THE COMPANY HAS RETAINED AN OUTSIDE EXECUTIVE SEARCH FIRM RUSSELL REYNOLDS ASSOCIATES TO FIND A NEW CHIEF EXECUTIVE OFFICER MR WENTZ SAID AT THE TIME HE WAS NAMED CHAIRMAN THAT HE WOULD SPEND THE NEXT 60 TO 90 DAYS SEARCHING FOR A NEW CHIEF EXECUTIVE AMONG INTERNAL AND EXTERNAL CANDIDATES BUT A PERSON WHO MANAGES TAMBRANDS HOLDINGS FOR A LARGE INSTITUTIONAL SHAREHOLDER SAID MR WENTZ INDICATED TO HIM THAT THE BOARD IS ALSO EXPLORING THE SALE OF TAMBRANDS ONE THING THAT MR WENTZ STRESSED A NUMBER OF TIMES IS THAT THE COMPANY OUGHT TO BE SOLD SAID THE PERSON WHO ASKED NOT TO BE IDENTIFIED A SALE OF THE COMPANY TO A BUYER SUCH AS JOHNSON & JOHNSON WHICH ALSO MAKES FEMININE SANITARY NAPKINS MAKES A LOT OF SENSE SAYS HEMANT K SHAH A DRUG ANALYST AT HKS ASSOCIATES J&J ALREADY IS FAR MORE DOMINANT IN THE EXTERNAL FEMININEHYGIENE MARKET AND THE TWO BUSINESSES ARE COMPLEMENTARY BUT OTHERS DOUBT THAT TAMBRANDS IS A SERIOUS ACQUISITION CANDIDATE I DON'T THINK IT'S ATTRACTIVE SAYS BONITA AUSTIN ANALYST AT SHEARSON LEHMAN NOTING THAT AT CURRENT SHARE PRICES TAMBRANDS' MARKET CAPITALIZATION IS ABOUT 16 BILLION AND A PURCHASE WOULD CERTAINLY BE A VERY DILUTIVE ACQUISITION FOR A US COMPANY FURTHERMORE WHILE ITS FLAGSHIP TAMPAX BRAND STILL CARRIES STRONG BRAND RECOGNITION TAMBRANDS HAS BEEN PLAGUED BY PROBLEMS IN RECENT MONTHS THE COMPANY'S UNIT MARKET SHARE HAS DECLINED PRECIPITOUSLY IN RECENT MONTHS BECAUSE OF HEFTY PRICE INCREASES TAKEN DURING MR EMMETT'S TERM AS WELL AS AGGRESSIVE PROMOTIONS LAUNCHED BY PLAYTEX ANY BUYER WOULD ALSO HAVE TO CONTEND WITH THE FALLOUT OF ALLEGATIONS BY COMPANY INSIDERS AND FORMER TAMBRANDS EXECUTIVES THAT MR EMMETT MISLED WALL STREET ABOUT THE COMPANY'S PERFORMANCE MISMANAGED THE COMPANY'S OPERATIONS AND SPENT LAVISHLY ON PERKS FOR HIMSELF AND HIS INNER CIRCLE MR EMMETT AND ANOTHER EXECUTIVE ALSO SOLD STOCK BEFORE THE COMPANY ISSUED UNFAVORABLE NEWS MR EMMETT SAID IN A BRIEF INTERVIEW THAT HIS OUSTER WAS NOT RELATED TO ANY PERSONAL IMPROPRIETIES FLOYD HALL A DIRECTOR SAID MR EMMETT'S DISMISSAL WAS PROMPTED BY OPERATIONAL PROBLEMS TAMBRANDS SHARES CLOSED AT 40125 UNCHANGED IN NEW YORK STOCK EXCHANGE TRADING FRIDAY 9306210009 930621 CLINTON UNVEILS EFFORT TO STOP SMUGGLING OF ILLEGAL IMMIGRANTS WASHINGTON PRESIDENT CLINTON ANNOUNCED A NEW EFFORT TO PREVENT ORGANIZED CRIME GROUPS FROM SMUGGLING ILLEGAL IMMIGRANTS INTO THE COUNTRY THE PRESIDENT ALSO SAID HE WILL NOMINATE DORIS MEISSNER 50 YEARS OLD AS COMMISSIONER OF THE IMMIGRATION AND NATURALIZATION SERVICE ALIEN SMUGGLING IS A SHAMEFUL PRACTICE OF UNSPEAKABLE DEGRADATION AND UNSPEAKABLE EXPLOITATION MR CLINTON SAID DETERRING THIS TRANSPORT IN HUMAN CARGO AND TRAFFIC IN HUMAN MISERY IS A PRIORITY FOR THIS ADMINISTRATION ATTORNEY GENERAL JANET RENO SAID WE HAVE MUCH WORK TO DO IN THIS AREA TO ENSURE THAT THOSE WHO TRULY DESERVE POLITICAL ASYLUM ARE GRANTED IT BUT THOSE WHO BREAK THE LAWS OF THIS COUNTRY ARE GIVEN THE STRICTEST POSSIBLE PENALTIES THE CRACKDOWN ON ALIEN SMUGGLING WILL INVOLVE 12 US AGENCIES WHICH WILL INCREASE EFFORTS TO INTERCEPT SMUGGLING SHIPS AND DETAIN ILLEGAL IMMIGRANTS WHO ARE BROUGHT INTO THE US THE PLAN CALLS FOR HARSHER RACKETEERING PENALTIES FOR CONVICTED SMUGGLERS IT ALSO PROPOSES THAT THE GOVERNMENT WORK WITH FOREIGN COUNTRIES TO STOP OR DETER POTENTIAL ALIENS FROM REACHING US COASTS ILLEGAL IMMIGRATION HAS BECOME A HOT TOPIC SINCE A SHIP TRANSPORTING SOME 300 CHINESE IMMIGRANTS CRASHED INTO A SANDBAR OFF THE COAST OF NEW YORK KILLING EIGHT PEOPLE MS MEISSNER IS A SENIOR ASSOCIATE AND DIRECTOR OF IMMIGRATION POLICY AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE SHE SERVED AS ACTING COMMISSIONER OF THE INS BETWEEN 1981 AND 1985 AND HELD KEY POSITIONS AT THE INS IN THE LATE 1970S IF APPROVED BY THE SENATE MS MEISSNER WILL PLAY A MAJOR ROLE IN EXECUTING THE WHITE HOUSE'S NEW STRATEGY AIMED AT THE GROWING ORGANIZED CRIME EFFORT TO SMUGGLE ILLEGAL ALIENS INTO THE US 9306210008 930621 MARKETING & MEDIA CHASE MANHATTAN OFFERING CREDIT CARD WITH BRITISH AIRWAYS NEW YORK CHASE MANHATTAN CORP IS ROLLING OUT A NEW CREDIT CARD WITH BRITISH AIRWAYS WITH LOADS OF PERKS AS CREDIT CARD ISSUERS FLOCK TO FREQUENTFLIER PROGRAMS THE MOVE REFLECTS THE CROWDED CARD MARKET'S CONTINUED FINETUNING COMPANIES ARE COMPETING ON PRICE AND OTHER ENHANCEMENTS TO WOO CUSTOMERS WE'VE GOT TO DO AND SAY SOMETHING THAT CATCHES THE EYE SAID THOMAS LYNCH EXECUTIVE VICE PRESIDENT IN CHARGE OF CREDIT CARDS AT CHASE THE NATION'S THIRD LARGEST CREDITCARD ISSUER ADDS LES DINKIN MANAGING PRINCIPAL AT NBW CONSULTING GROUP A BANK CONSULTING FIRM BASED IN WESTPORT CONN WITH THE BANK CARD MARKET LARGELY SATURATED CARD ISSUERS ARE BEING FORCED TO DIFFERENTIATE THEIR OFFERS AS AN INTRODUCTORY OFFER CHASE IS OFFERING HOLDERS 50 TO 1000 IN CASH FOR TRANSATLANTIC FLIGHTS UP TO FOUR MEMBERS OF ANY HOUSEHOLD OR BUSINESS CAN SHARE AND POOL MILES THE MILES CAN ALSO BE USED ON FLIGHTS OF USAIR GROUP INC AND AMR CORP'S AMERICAN AIRLINES IF BRITISH AIRWAYS DOESN'T TRAVEL TO A DESTINATION AUTOMOBILE COLLISION INSURANCE ALSO IS INCLUDED IN THE NEW CARD THE CARD'S COST IS BETWEEN 50 AND 65 ANNUALLY WITH INTEREST RATES 94 TO 109 OVER THE PRIME LENDING RATE WHICH IS COMPETITIVE WITH OTHER CARDS CREDIT CARD ANALYSTS SAY CHASE'S CARD FOLLOWS FREQUENTFLIER CARDS BY AMERICAN EXPRESS CO WHICH HAS THE DOMINANT SHARE IN THE MARKET AND SECONDPLACE CITICORP THOUGH BIG IN THE OVERALL CARD MARKET CHASE WAS A BIT PLAYER IN THE FREQUENTFLIER MARKET WHICH IS ESTIMATED AT 63 MILLION CARDS NATIONWIDE BY THE NILSON REPORT A CREDITCARD NEWSLETTER 9306210007 930621 RENAULT AND VOLVO STEP UP TALKS AIMED AT MERGER AGREEMENT BONN FRANCE'S RENAULT SA AND SWEDEN'S AB VOLVO ALREADY LINKED IN A STRATEGIC ALLIANCE HAVE STEPPED UP NEGOTIATIONS AIMED AT MERGING THE TWO CAR MAKERS BUT INDUSTRY SOURCES SAY IT COULD TAKE MONTHS BEFORE A FINAL AGREEMENT IS HAMMERED OUT CONDITIONS WERE NEVER BETTER FOR THE TWO TO PUSH TOWARD A FULL MARRIAGE FRANCE'S NEW GOVERNMENT FAVORS PRIVATIZING STATECONTROLLED RENAULT AN INTEGRAL STEP ALONG THE ROAD TO A MERGER ON THE SWEDISH SIDE VOLVO RECENTLY RESOLVED A DISPUTE WITH THE SWEDISH GOVERNMENT OVER THE FUTURE OF PROCORDIA AB THE FOOD AND DRUG CONGLOMERATE JOINTLY CONTROLLED BY VOLVO AND THE SWEDISH STATE OFFICIALS AT BOTH CAR COMPANIES DECLINED TO COMMENT ON FRENCH NEWS REPORTS LAST WEEK SUGGESTING AN ANNOUNCEMENT OF THE MERGER COULD COME AS EARLY AS JULY OR SEPTEMBER BOTH COMPANIES HAVE LONG SAID THEY WANT TO FORGE A STRONGER BOND BUT COMPANY OFFICIALS ON FRIDAY EMPHASIZED THERE IS NO TIMETABLE A COMPANY CREATED BY SUCH A MERGER WOULD CONTROL MORE THAN 11 OF THE EUROPEAN CAR MARKET AND BE WELLPOSITIONED FOR THE CONTINENT'S INTENSIFYING COMPETITION WHEN THE TWO FORGED THEIR ALLIANCE THREE YEARS AGO RENAULT LOOKED LIKE THE WEAK PARTNER HAVING SKIRTED FINANCIAL COLLAPSE AND STRUGGLING TO GAIN MARKET SHARE OUTSIDE ITS HOME MARKET WHILE VOLVO WAS THRIVING TODAY THESE POSITIONS HAVE REVERSED WITH RENAULT VIEWED AS ONE OF EUROPE'S STRONGEST CAR MAKERS AND VOLVO BATTLING SLUMPING SALES INDUSTRY ANALYSTS SAY THAT RENAULT WOULD BE THE DOMINANT PARTNER IN A MERGER AND THAT THIS IS ONE FACTOR THAT WILL MAKE PRIVATIZATION OF RENAULT EASIER IN FRANCE 9306210006 930621 OLYMPIA & YORK UNIT PROGRESSES IN TALKS ON REVAMPING DEBT NEW YORK CYRUS VANCE THE COURTAPPOINTED EXAMINER TO OLYMPIA & YORK DEVELOPMENTS LTD'S US UNIT APPARENTLY IRONED OUT THE THORNIEST ISSUE HOLDING UP THE COMPANY'S DEBT RESTRUCTURING NEGOTIATIONS BUT OTHER PROBLEMS REMAIN A SPOKESWOMAN FOR MR VANCE SAID MR VANCE A FORMER US SECRETARY OF STATE IS TO REPORT BACK TODAY TO THE US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK ON WHAT PROGRESS HE HAS MADE IN RESOLVING THE REMAINING DIFFERENCES IN A LONGRUNNING DISPUTE BETWEEN THE US SUBSIDIARY'S CREDITORS AND EQUITY HOLDERS SAID LILLIAN E KRAEMER SPEAKING ON BEHALF OF MR VANCE MS KRAEMER SPEAKING AT THE COURT FRIDAY SAID THE PARTIES HAVE AGREED ON THE COMPOSITION OF A NEW NINEMEMBER BOARD FOR THE UNIT OLYMPIA & YORK COS USA THE DISPUTE OVER THE BOARD HAS BEEN THE MOST CONTENTIOUS DIVIDING THE CREDITORS AND EQUITY HOLDERS AND HAS RISKED DRIVING THE US COMPANY INTO BANKRUPTCYCOURT PROTECTION THE EQUITY HOLDERS ARE REPRESENTED BY THE CANADIAN ADMINISTRATOR TO OLYMPIA & YORK DEVELOPMENTS UNDER THE AGREEMENT MOST OF THE UNIT'S BOARD WILL BE INDEPENDENT DIRECTORS WHOSE REMOVAL WOULD REQUIRE CONSULTATION BETWEEN US AND CANADIAN BANKRUPTCY COURTS MS KRAEMER SAID O&Y USA HAS BEEN WITHOUT A BOARD SINCE ITS TORONTO PARENT EMERGED FROM CANADIAN BANKRUPTCYCOURT PROTECTION IN MARCH THE AGREEMENT ON THE NEW BOARD COULD FALL APART IF OTHER PROBLEMS CAN'T BE RESOLVED THESE INCLUDE HOW MUCH ACCESS THE CANADIAN ADMINISTRATOR WILL HAVE TO INFORMATION ABOUT THE DAYTODAY AFFAIRS OF THE US UNIT ALSO TO BE WORKED OUT IS WHETHER O&Y USA'S SENIOR OFFICERS SHOULD BE INDEMNIFIED FROM LEGAL LIABILITY 9306210005 930621 US INVESTORS FIND A PLACE IN UKRAINE LED BY BIG FIRMS SMALL ENTREPRENEURS BY NATALIA A FEDUSCHAK SPECIAL TO THE WALL STREET JOURNAL KIEV UKRAINE WHEN ROMAN POPADIUK WAS HANDED A LIST OF GUIDELINES TO FOLLOW AS A NEWLY APPOINTED US AMBASSADOR TO UKRAINE LAST YEAR HIS FIRST PRIORITY WAS TO ENCOURAGE USUKRAINE TRADE SO MR POPADIUK BEGAN TO ACTIVELY COURT AMERICAN BUSINESSES LOOKING FOR OPPORTUNITIES IN THIS FORMER SOVIET REPUBLIC TODAY HE CAN BOAST THAT AMERICANS HAVE BECOME THE MOST VISIBLE INVESTORS IN UKRAINE THE US EMBASSY IN KIEV WAS THE FIRST TO INAUGURATE A CHAMBER OF COMMERCE IN THE COMMONWEALTH OF INDEPENDENT STATES SOME 125 US COMPANIES HAVE SET UP SHOP AND THE NUMBER PROMISES TO INCREASE FOLLOWING A VISIT LAST MONTH TO UKRAINE BY 25 LARGE AND SMALL US CONCERNS AS PART OF AN OVERSEAS PRIVATE INVESTMENT CORP TOUR WORKING IN UKRAINE'S FAVOR DESPITE SOME RECENT JITTERS IS A RELATIVELY STABLE POLITICAL ENVIRONMENT AMERICANS SAY THE EMBASSY ESTIMATES THAT US COMPANIES ACCOUNT FOR ABOUT HALF OF ALL FOREIGN INVESTMENT IN UKRAINE AS OF MAY 15 ACCORDING TO THE MINISTRY OF FINANCE SUCH INVESTMENT TOTALED 15 BILLION REFLECTING 5400 ENTERPRISES REGISTERED AS HAVING FOREIGN CAPITAL US INVESTMENTS RANK FIRST AND GERMAN INVESTMENTS SECOND THE MINISTRY SAID US INVESTORS TEND TO BE EITHER BIG MULTINATIONALS OR SMALL ENTREPRENEURS THE MULTINATIONALS SAY UKRAINE WITH 52 MILLION INHABITANTS IS A MARKET THEY CAN'T AFFORD TO IGNORE THE ENTREPRENEURS SAY THAT WHILE UKRAINE CARRIES A LARGE FINANCIAL RISK IT IS ONE OF THE FEW PLACES ONE CAN STILL GET RICH MIDSIZE COMPANIES ON THE OTHER HAND HAVE TENDED TO STAY AWAY CITING THE POOR US ECONOMY THE FIRST MAJOR US COMPANIES TO INVEST IN UKRAINE WERE SC JOHNSON & SON INC RACINE WIS AND TAMPON MAKER TAMBRANDS INC WHITE PLAINS NY DESPITE A HOST OF PROBLEMS WITH BUREAUCRACY PARTNERS AND SUPPLIES THE TWO ARE OPERATING PERHAPS THE MOST SUCCESSFUL US VENTURES HERE TAMBRANDS WHICH ESTABLISHED A JOINT VENTURE CALLED FEMTECH IN DECEMBER 1988 RECENTLY BOUGHT OUT ITS UKRAINIAN PARTNER THE UKRAINE MINISTRY OF HEALTH SC JOHNSON KIEV CORP THE SC JOHNSON UNIT PRODUCES SOME 20 MILLION TO 22 MILLION BOTTLES A YEAR OF DETERGENTS SHAMPOO AND HOUSEHOLD CLEANSERS ONE OF THE SIGNIFICANT INVESTORS THAT HAS FOLLOWED IS PEPSICO INC PURCHASE NY THE COMPANY SIGNED AN AGREEMENT TO MARKET 1 BILLION OF UKRAINIANBUILT COMMERCIAL SHIPPING VESSELS OVER THE NEXT EIGHT YEARS SOME OF THE PROCEEDS FROM THE SHIP SALES WILL BE REINVESTED IN THE SHIPPING VENTURE AND USED TO BUY SOFT DRINK EQUIPMENT BUILD FIVE NEW BOTTLING PLANTS IN UKRAINE AND FINANCE THE OPENING OF 100 PIZZA HUT RESTAURANTS SMALLER COMPANIES MOVING INTO UKRAINE REPRESENT INTERESTS IN TELEVISION PROGRAMMING LEGAL SERVICES IMPORT/EXPORT TELECOMMUNICATIONS CAR DEALERSHIPS COMPUTERS AND PRETZELMAKING A NUMBER OF THESE SMALLER COMPANIES HAVE SET UP PROFITABLE VENTURES FOR THE ENTREPRENEUR HOWEVER UKRAINE POSES SOME WORRISOME PROBLEMS THE FIRST IS FINANCING WHEREAS MULTINATIONALS CAN BE PREPARED TO LOSE MONEY OVER A FEW YEARS SMALL BUSINESSES ARE UNDER PRESSURE TO FIND LUCRATIVE DEALS QUICKLY I WOULD SAY DON'T BOTHER INVESTING HERE UNLESS YOU'VE GOT SEVERAL THOUSAND DOLLARS AS A CUSHION SAYS DAVID SWEERE PRESIDENT OF SOPHIA TRANSCON INDUSTRIES LTD A COMPANY THAT MAKES PARTS FOR AGRICULTURAL EQUIPMENT USING UKRAINIAN RAW MATERIALS SECONDLY SMALL BUSINESSES ARE MORE LIKELY TO BE HIT UP BY ORGANIZED CRIMINALS FOR PROTECTION MONEY THE MAFIA' IS STILL AFRAID TO TOUCH THE MULTINATIONALS BUT IT DOES PREY ON SMALL BUSINESSMEN SAYS ONE AMERICAN ENTREPRENEUR WHO ASKED NOT TO BE IDENTIFIED HE SAYS HE PAID 12000 IN PROTECTION MONEY AFTER RECEIVING A MESSAGE THAT SOME OF HIS EMPLOYEES MAY BE IN JEOPARDY IF HE DIDN'T PAY AND MANY SAY THE COUNTRY'S CONSTANTLY CHANGING LEGAL ENVIRONMENT IS SCARING OFF OTHER POTENTIAL INVESTORS THE GOVERNMENT HAS MOVED TO MAKE SOME DISADVANTAGEOUS CHANGES IN UKRAINE'S FOREIGN INVESTMENT LAW THE LAW IS TO BE REVIEWED AGAIN SOON WESTERN ATTORNEYS HERE SAY ALTHOUGH IT ISN'T KNOWN WHAT DIRECTION THE GOVERNMENT NOW INTENDS TO TAKE THE COUNTRY'S CURRENT POLITICAL SITUATION WHICH THREATENS TO BRING ECONOMIC REFORMS TO A HALT IS ALSO MAKING FOREIGN INVESTORS NERVOUS IN ADDITION KIEV HAS CLEARED THE INTRODUCTION OF A 20 VALUEADDED TAX FROM WHICH FOREIGN COMPANIES HAD INITIALLY BEEN EXEMPT UNDER A NEW HARDCURRENCY REGULATION FOREIGN COMPANIES WILL ALSO HAVE TO SELL 50 OF THEIR FOREIGN CURRENCY INCOME TO A LICENSED BANK AND MAY KEEP THE OTHER 50 IN FOREIGN CURRENCY ACCORDING TO ALEX FRISHBERG A PARTNER AT LAW FIRM GRISHENKO FRISHBERG & PALIASHVILI IF THEY LATER NEED HARD CURRENCY FOREIGN ENTERPRISES WILL BE ABLE TO SELL UKRAINE'S TEMPORARY CURRENCY THE KARBOVANETS AT A HARDCURRENCY AUCTION UKRAINE AND THE US ARE NEGOTIATING TAX AND INVESTMENT TREATIES THAT COULD HELP AMERICAN COMPANIES OVERCOME SOME OF THESE PROBLEMS STILL AMERICANS HERE SAY WASHINGTON COULD HELP BY PROVIDING GOVERNMENT CREDITS SIMILAR TO THOSE PROVIDED BY GERMANY LAST YEAR BONN SUPPLIED EXPORT CREDIT GUARANTEES TOTALING FIVE BILLION MARKS 301 BILLION FOR ALL FORMER SOVIET REPUBLICS ENABLING GERMAN CONCERNS TO INVEST WITH SOME SECURITY IT'S DIFFICULT WHEN YOU'RE TAKING 100 OF RISK WITH NO GUARANTEES ON YOUR INVESTMENT SAYS MR SWEERE THE PRESIDENT OF SOFIA TRANSCON THE FARMEQUIPMENT PARTS MAKER THE EUROPEAN NATIONS ARE PUTTING THE MEAT ON THE BONES AND HAVE BEEN FOR SOME TIME WHEN IT COMES TO BUSINESS IN UKRAINE MR SWEERE SAYS AMERICANS ARE STILL PERCEIVED AS LOSING MARKET SHARE 9306210004 930621 COURT'S RULING ON HELP FOR DEAF STUDENT CHEERS BACKERS OF PAROCHIALSCHOOL AID BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSERVATIVE LAWYERS SAID THEY WILL EXPAND THEIR EFFORTS TO WIN PUBLIC AID FOR RELIGIOUS EDUCATION IN THE WAKE OF FRIDAY'S SUPREME COURT RULING THAT PUBLIC FUNDS MAY BE USED FOR SERVICES FOR A DEAF STUDENT IN A PAROCHIAL SCHOOL THE HIGH COURT RULED 54 THAT THE CONSTITUTIONAL SEPARATION OF CHURCH AND STATE DIDN'T BAR AN ARIZONA SCHOOL DISTRICT FROM PAYING FOR A SIGNLANGUAGE INTERPRETER FOR A DEAF STUDENT AT A TUCSON CATHOLIC HIGH SCHOOL THE STUDENT'S PARENTS HAD SUED THE CATALINA FOOTHILLS SCHOOL DISTRICT AFTER THE SYSTEM REFUSED ON CONSTITUTIONAL GROUNDS TO PAY FOR THE INTERPRETER IN HIS OPINION FOR THE MAJORITY CHIEF JUSTICE WILLIAM REHNQUIST ASSERTED THAT THE INTERPRETER WOULD BE PART OF A PROGRAM THAT DISTRIBUTES BENEFITS NEUTRALLY TO ANY CHILD QUALIFYING AS HANDICAPPED' WITHOUT REGARD TO THE TYPE OF SCHOOL INVOLVED THE CHIEF JUSTICE REASONED THAT SUCH AID WOULDN'T AMOUNT TO A DIRECT SUBSIDY TO A RELIGIOUS SCHOOL WHICH THE HIGH COURT PREVIOUSLY HAS RULED IMPERMISSIBLE HANDICAPPED CHILDREN NOT SECTARIAN SCHOOLS ARE THE PRIMARY BENEFICIARIES OF THE SUBSIDY HE ADDED ANY FINANCIAL ADVANTAGE ENJOYED BY A RELIGIOUS SCHOOL IS THE RESULT OF PRIVATE CHOICES BY PARENTS WHO SEND THEIR CHILD THERE NOT OF PUBLIC POLICY THE CHIEF JUSTICE WROTE JOINING THE MAJORITY WERE JUSTICES BYRON WHITE ANTONIN SCALIA ANTHONY KENNEDY AND CLARENCE THOMAS THE RULING DIDN'T SAY THAT LOCAL GOVERNMENTS MUST PAY FOR SERVICES FOR THE DEAF IN PAROCHIAL SCHOOLS INSTEAD THE HIGH COURT SAID DOING SO IS ONE OPTION THEY CAN CHOOSE TO COMPLY WITH A FEDERAL LAW THAT REQUIRES EQUAL EDUCATION FOR DISABLED CHILDREN WRITING IN DISSENT JUSTICE HARRY BLACKMUN OBSERVED UNTIL NOW THE COURT NEVER HAS AUTHORIZED A PUBLIC EMPLOYEE TO PARTICIPATE DIRECTLY IN RELIGIOUS INDOCTRINATION YET THAT IS THE CONSEQUENCE OF TODAY'S DECISION JUSTICES DAVID SOUTER SANDRA DAY O'CONNOR AND JOHN PAUL STEVENS JOINED ALL OR PART OF THE DISSENT ALTHOUGH THE MAJORITY OPINION WAS TAILORED CLOSELY TO FIT THE FACTS OF THE DISPUTE FROM ARIZONA PROPONENTS OF PUBLIC SUPPORT FOR RELIGIOUS EDUCATION SAID THE DECISION WOULD HELP THEM WIN BROADER SUBSIDIES FOR PAROCHIALSCHOOL STUDENTS THE INSTITUTE FOR JUSTICE A WASHINGTONBASED CONSERVATIVE LEGAL GROUP SAID FRIDAY'S RULING WILL HELP ITS EFFORTS TO GET PUBLIC VOUCHERS FOR POOR CHILDREN WHO WOULD PREFER TO ATTEND PAROCHIAL SCHOOLS RATHER THAN INNERCITY PUBLIC SCHOOLS THE HIGH COURT'S RULING REMOVES THE CONSTITUTIONAL CLOUD FROM EFFORTS TO PROMOTE SCHOOL CHOICE NATIONWIDE SAID CLINT BOLICK THE GROUP'S LITIGATION DIRECTOR HE SAID HIS ORGANIZATION CURRENTLY IS SEEKING VOUCHERS FOR STUDENTS IN CHICAGO AND LOS ANGELES BUT ADVOCATES OF A STRICT PARTITION BETWEEN CHURCH AND STATE COUNTERED THAT THE HIGH COURT'S RULING SHOULDN'T BE READ TOO BROADLY THIS DECISION DOESN'T OPEN THE DOOR FOR VOUCHERS OR OTHER KINDS OF PAROCHIAL SCHOOL AID SAID BARRY LYNN EXECUTIVE DIRECTOR OF AMERICANS UNITED FOR SEPARATION OF CHURCH AND STATE A SILVER SPRING MDBASED GROUP IT SIMPLY HOLDS THAT STATES MAY HAVE AN OBLIGATION TO ASSIST DISABLED STUDENTS UNDER CERTAIN CONDITIONS EVEN IF THEY ATTEND NONPUBLIC SCHOOLS IN A SEPARATE CASE THE SUPREME COURT RULED 72 THAT PRISONERS HAVE A CONSTITUTIONAL RIGHT NOT TO BE EXPOSED TO CELLMATES' CIGARETTE SMOKE IF SUCH EXPOSURE CREATES AN EXTREME HEALTH RISK BUT THE MAJORITY MADE IT CLEAR THAT SUCCESSFULLY ASSERTING THIS RIGHT IN A LAWSUIT WOULD BE DIFFICULT IN ADDITION TO PROVING AN UNREASONABLE HEALTH RISK A PRISONER WOULD HAVE TO SHOW THAT SOCIETY CONSIDERS THE RISK TO BE SO GRAVE THAT IT VIOLATES CONTEMPORARY STANDARDS OF DECENCY TO EXPOSE ANYONE UNWILLINGLY TO SUCH A RISK THE MAJORITY SAID AN INMATE WOULD HAVE TO PROVE THAT PRISON OFFICIALS WERE DELIBERATELY INDIFFERENT TO THE HEALTH RISK IT ADDED THE HIGH COURT AFFIRMED A LOWERCOURT RULING THAT REINSTATED AN INMATE'S SUIT AGAINST PRISON OFFICIALS IN NEVADA THE INMATE HAD INVOKED THE EIGHTH AMENDMENT WHICH PROHIBITS CRUEL AND UNUSUAL PUNISHMENT WEIGHING IN FAVOR OF SUCH A SUIT IS AN ENVIRONMENTAL PROTECTION AGENCY REPORT ISSUED IN JANUARY IT CONCLUDED THAT PASSIVE CIGARETTE SMOKE CAUSES CANCER AND IS RESPONSIBLE FOR 3000 DEATHS A YEAR IN THE US NEVADA HAD OBJECTED THAT THE INMATE IN THIS CASE WAS COMPLAINING ABOUT POTENTIAL HARM HE MIGHT SUFFER IN THE FUTURE NOT A CURRENT ILLNESS BUT IN AN OPINION FOR THE MAJORITY JUSTICE WHITE SAID IT WOULD BE ODD TO BLOCK AN INMATE'S SUIT OVER AN ALLEGEDLY LIFETHREATENING HAZARD ON THE GROUND THAT NOTHING BAD HAD HAPPENED YET TO ILLUSTRATE HE SAID THAT INMATES WHO WEREN'T SICK COULD STILL FILE SUITS COMPLAINING ABOUT UNSAFE DRINKING WATER OR EXPOSURE TO PRISONERS WITH COMMUNICABLE DISEASES IN THE CASE OF THE NEVADA INMATE JUSTICE WHITE NOTED THAT SINCE THE LAWSUIT WAS FILED THE PRISONER HAD BEEN TRANSFERRED TO A DIFFERENT PRISON AND THE SYSTEM HAD INSTITUTED RESTRICTIONS ON SMOKING THESE CHANGED CONDITIONS COULD DOOM THE SUIT JUSTICE WHITE SAID JOINING THE MAJORITY WERE CHIEF JUSTICE REHNQUIST AND JUSTICES BLACKMUN AND KENNEDY AS WELL AS JUSTICES STEVENS O'CONNOR AND SOUTER 9306210003 930621 SENATE DEMOCRATS ARE EXPECTED TO PASS A DEFICITREDUCTION PLAN THIS WEEK BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE DEMOCRATS ARE LIKELY TO PASS THEIR VERSION OF PRESIDENT CLINTON'S DEFICITREDUCTION PLAN THIS WEEK THOUGH NOT WITHOUT FURTHER CHANGES BY DEMOCRATS AND SOME POLITICALLY TOUCHY BUT PROBABLY FUTILE AMENDMENTS FROM REPUBLICANS THE SENATE COULD BEGIN DEBATING THE MEASURE THE MAJOR PART OF MR CLINTON'S BLUEPRINT TO CUT THE DEFICIT NEARLY 500 BILLION OVER FIVE YEARS ON WEDNESDAY AND COULD FINISH BY THE WEEKEND UNLIKE MR CLINTON'S EARLIER SPENDING STIMULUS BILL THAT FELL TO A REPUBLICAN FILIBUSTER THE DEFICITREDUCTION MEASURE IS PROTECTED BY BUDGET RULES THAT PREVENT SUCH TACTICS LIMIT THE TIME FOR DEBATE AND RESTRICT AMENDMENTS THE SENATE BILL'S SPONSORS MAJORITY LEADER GEORGE MITCHELL AND FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY PREDICT THE MEASURE WILL PASS THE REPUBLICANS' LEADER SEN BOB DOLE OF KANSAS AGREES I ASSUME THIS WILL PASS THE SENATE HE SAID FRIDAY BUT THE BIG PROBLEM STARTS IN CONFERENCE THE CONFERENCE COMMITTEE OF THE HOUSE AND SENATE PROBABLY WOULD BEGIN NEGOTIATIONS IN JULY IT WILL HAVE A TOUGH TIME RESOLVING DIFFERENCES BETWEEN THE TWO CHAMBERS' BILLS WHILE HOLDING SUPPORT ACROSS THE SPECTRUM OF LIBERALS AND CONSERVATIVES THE TWO BILLS SHARE MUCH IN COMMON WITH MR CLINTON'S PLAN BUT THE HOUSE BILL CONTAINS HIS PROPOSED BROADBASED ENERGY TAX WHILE THE SENATE BILL REFLECTING THE MORE CONSERVATIVE STANCE OF THAT CHAMBER HAS A SMALLER 43 CENTSAGALLON FUELSTAX INCREASE ALONG WITH DEEPER CUTS IN SPENDING FOR MEDICARE AND NO PROVISION FOR SEVERAL OTHER CLINTON DOMESTIC INITIATIVES WHITE HOUSE BUDGET DIRECTOR LEON PANETTA APPEARING ON CNN'S NEWSMAKER SUNDAY SAID MR CLINTON WANTS A BROADBASED ENERGY TAX AND THAT OBVIOUSLY MEANS SOMETHING BETWEEN THE HOUSE AND SENATE VERSIONS SEN DOLE HAS PREDICTED THAT DEMOCRATS ULTIMATELY WILL RAISE THE SENATE BILL'S PROPOSED FUELS TAX BUT ON THE CNN PROGRAM MR PANETTA SAID THAT WOULD BE DIFFICULT POLITICALLY ESPECIALLY AMONG HOUSE DEMOCRATS THERE IS BROAD OPPOSITION TO INCREASES IN THE EXISTING 141 CENTSAGALLON GASOLINE TAX BECAUSE OF THE DISPROPORTIONATE IMPACT ON LOWERINCOME CONSUMERS SEN MOYNIHAN ON CBS NEWS' FACE THE NATION YESTERDAY SOUGHT TO DAMP SPECULATION THAT THE FINAL BILL WOULD AS SOME LIBERALS SEEK RAISE THE 34 CORPORATE TAX RATE BEYOND THE 35 THAT THE HOUSE AND SENATE BILLS CALL FOR HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL AND TREASURY SECRETARY LLOYD BENTSEN COMMITTED TO THAT RATE IN RETURN FOR SOME CORPORATIONS' SUPPORT FOR THE BILL AND SEN MOYNIHAN SAID IT'S KIND OF SOMETHING THAT'S BEEN AGREED TO WHEN THE SENATE TAKES UP THE BILL THIS WEEK SEN MOYNIHAN ALSO MIGHT MODIFY IT TO BOOST INCENTIVES FOR SMALL BUSINESSES CITING THE WISHES OF SEVERAL PANEL DEMOCRATS HE SUGGESTED IN A BRIEF INTERVIEW FRIDAY THAT A WRITEOFF FOR SMALL BUSINESSES' EQUIPMENT PURCHASES COULD BE DOUBLED TO 20000 FROM THE CURRENT 10000 THE COMMITTEE HAD VOTED FOR A 15000 LEVEL WHILE THE HOUSE AT MR CLINTON'S REQUEST APPROVED 25000 IN ITS BILL SOME DEMOCRATS ALSO ARE LOOKING FOR A WAY TO RESTORE A CAPITALGAINS TAX BREAK FOR INVESTMENTS IN CERTAIN SMALL BUSINESSES AN ADMINISTRATIONBACKED PROVISION THAT THE FINANCE PANEL DELETED THE SENATE PACKAGE WAS APPROVED IN THE FINANCE COMMITTEE LAST FRIDAY ON AN 119 VOTE WITH ALL DEMOCRATS VOTING FOR IT AND ALL REPUBLICANS AGAINST LIKEWISE IN THE FULL SENATE ALL 44 REPUBLICANS ARE EXPECTED TO VOTE AGAINST THE BILL SO DEMOCRATS CAN'T AFFORD TO LOSE MORE THAN A HANDFUL OF THEIR 56 VOTES SEVERAL LIBERALS HAVE VOICED OPPOSITION TO THE SOCIALPROGRAM SAVINGS THOUGH IT IS UNCLEAR WHAT AMENDMENTS THEY MIGHT OFFER ON THE FLOOR THIS IS NOTHING BUT A BIG BIG TAX PACKAGE SEN DOLE SAID FRIDAY AFTER THE FINANCE PANEL FINISHED WORK HE CLAIMED THE BILL WAS THREEFOURTHS TAX INCREASES AND JUST ONEFOURTH SPENDING CUTS BUT DEMOCRATS CLAIM ABOUT 250 BILLION IN NEW TAXES AND AN EQUAL AMOUNT OF SPENDING CUTS OVER FIVE YEARS COUNTING LOWER INTEREST PAYMENTS ON THE FEDERAL DEBT THAT WOULD RESULT ALONG WITH SEPARATE SPENDING LIMITS THAT THE MEASURE WOULD IMPOSE ON CONGRESS'S APPROPRIATIONS PROCESS OVER THE NEXT FIVE YEARS THE FINANCE COMMITTEE'S DELIBERATIONS LATE LAST WEEK GAVE A PREVIEW OF THE SORT OF AMENDMENTS REPUBLICANS WILL OFFER DURING THE FLOOR DEBATE TOUCHING ON TWO OF THE MOST POLITICALLY SENSITIVE SUBJECTS IN POLITICS SOCIAL SECURITY AND TAXES ALL OF THE GOP AMENDMENTS WERE DEFEATED MOSTLY ON PARTYLINE VOTES THE PANEL DEFEATED ONE GOP AMENDMENT TO DELETE THE BILL'S PROVISION INCREASING THE PORTION OF SOCIAL SECURITY BENEFITS ON WHICH HIGHERINCOME BENEFICIARIES WOULD HAVE TO PAY INCOME TAXES ALSO BEATEN WAS A GOP PROPOSAL REQUIRING THAT THE BILL'S TAX INCREASES MOST OF WHICH WOULD HIT TOPINCOME INDIVIDUALS HARD WOULD LAPSE AFTER FIVE YEARS OTHER DEFEATED AMENDMENTS WOULD HAVE EXEMPTED A FEW SMALL BUSINESSES FROM THE HIGHER INCOMETAX RATES AND WOULD HAVE DROPPED THE BILL'S PROVISION LIMITING BUSINESS DEDUCTIONS FOR ENTERTAINMENT EXPENSES AFTERWARD SEN MITCHELL TWEAKED THE OPPONENTS ABOUT THEIR PROPOSALS AFTER A FOG OF RHETORIC FROM REPUBLICANS ABOUT THE NEED TO REDUCE SPENDING HE SAID FRIDAY THEY HAD THE CHANCE TO OFFER ANY AMENDMENT THEY CHOSE AND THEY OFFERED NOT ONE TO CUT SPENDING SEN DOLE ALSO ON FACE THE NATION YESTERDAY SAID REPUBLICANS WILL OFFER AN ALTERNATIVE DEFICITREDUCTION PLAN IN THE FULL SENATE BUT HE SAID THEY HADN'T DECIDED WHETHER TO OFFER ONE THAT INCLUDES SOME TAX INCREASES WHICH HE COULD SUPPORT OR ONE WITH NO TAX INCREASES INDICATING THAT THE PARTY REMAINS DIVIDED BY THAT ISSUE 9306210002 930621 CATASTROPHIC LOSS HIGHSCHOOL ATHLETES WITH SEVERE INJURIES FACE HUGE BILLS ALONE INSURANCE FIRM THAT COVERED THEM FAILED THE FBI LOOKS AT CLAIMS OF FRAUD BIG SALARY AND A CORPORATE JET BY CLARE ANSBERRY AND ERLE NORTON STAFF REPORTERS OF THE WALL STREET JOURNAL JOHN AVILA A FORMER HIGHSCHOOL FOOTBALL CAPTAIN LIES IN A SEMICOMA HOOKED TO INTRAVENOUS TUBES IN A VIRGINIA NURSING HOME OBLIVIOUS THAT HE HAS BECOME A VICTIM OF AN INSURANCE FIASCO ON SEPT 11 1987 HE TOOK A HARD BLOW TO THE HEAD IN THE THIRD QUARTER OF A FOOTBALL GAME IN FALLS CHURCH THE HIT LEFT HIM BRAIN DAMAGED AND HE HAS NEVER RECOVERED NOW 22 YEARS OLD MR AVILA WILL NEED CARE FOR HIS ENTIRE LIFE HIS SCHOOL'S INSURANCE POLICY DESIGNED TO COVER SUCH CATASTROPHIC INJURIES FOR LIFE HAS PAID ABOUT 268000 FOR HIS MEDICAL BILLS BUT NOW THE FAILURE OF AN INSURANCE COMPANY SEVERAL HUNDRED MILES AWAY HAS STRIPPED HIM OF THAT COVERAGE MR AVILA IS ONE OF ABOUT 160 INJURED HIGHSCHOOL STUDENTS NATIONWIDE INCLUDING 68 WHO ARE PARALYZED OR BRAINDAMAGED WHO SUDDENLY FOUND THEMSELVES WITHOUT THE MEDICAL CARE PROMISED THEM BY A KANSAS INSURANCE OPERATION THE FIRM DOUG RUEDLINGER INC IN TOPEKA WENT INTO CHAPTER 7 BANKRUPTCY IN APRIL AMID ALLEGATIONS OF FRAUD AND MISSING FUNDS ITS UNDERWRITER FOR CATASTROPHIC AND LIABILITY COVERAGE A SISTER COMPANY NAMED UNITED INTERNATIONAL INSURANCE CO IN RHODE ISLAND WAS TAKEN OVER BY STATE INSURANCE REGULATORS LAST YEAR SEVERAL LAWSUITS AND CLAIMS HAVE BEEN FILED INCLUDING ONE THAT ALLEGES THE RUEDLINGER INSURANCE BUSINESSES STOLE EMBEZZLED CONVERTED AND MISAPPLIED INSURANCE PREMIUMS THE FEDERAL BUREAU OF INVESTIGATION IS INVESTIGATING POTENTIAL MAIL FRAUD STATE INSURANCE OFFICIALS SAY ALTHOUGH THE FBI WON'T COMMENT WHEN MR AVILA'S INSURANCE PAYMENTS WERE CUT OFF LAST YEAR HIS FAMILY HAD TO EXHAUST ABOUT 50000 IN A FUND ESTABLISHED BY FRIENDS AND RELATIVES THEN SIGN HIM UP FOR MEDICAID MOISES AVILA A MAINTENANCE MAN WHO CAME FROM COLOMBIA IN THE MID1970S WITH HIS WIFE AND THREE CHILDREN WORRIES THAT HIS SON MAY NOT GET THE COSTLY CARE HE NEEDS BECAUSE SOME DOCTORS DON'T TAKE MEDICAID IT IS VERY DIFFICULT FOR ME TO UNDERSTAND THIS WE HAD SOMETHING TERRIBLE HAPPEN TO US BUT WE WERE HAPPY THAT JOHN WOULD HAVE CARE FOR THE REST OF HIS LIFE THE INSURANCE WAS SUPPOSED TO CONTINUE UNTIL HE DIED SAYS MR AVILA THE FATHER HAD A 25000 MEDICAL POLICY THAT COVERED HIS SON'S ACCIDENT BUT THAT WAS EXHAUSTED IN WEEKS HIS WIFE QUIT WORK TO BE WITH HER SON TO EXERCISE HIS NEARLY PARALYZED HANDS AND FINGERS AND TURN HIM EVERY TWO HOURS TO AVOID BED SORES THE FAMILY HAD HOPED TO SAVE THE FUND MONEY IN CASE HE EVER WOKE UP OR IN CASE HE DIED AND WE NEEDED MONEY FOR THE FUNERAL ALTHOUGH SCORES OF STUDENTS IN SEVERAL STATES ARE SEEKING COMPENSATION FROM THE RUEDLINGER OPERATION THERE IS LITTLE CHANCE THEY WILL GET ANY MONEY UNITED INTERNATIONAL HAD ABOUT 15 MILLION IN UNPAID LOSSES WHEN IT WENT INTO RECEIVERSHIP DOUG RUEDLINGER INC HAD 43 MILLION IN LIABILITIES AND 41 MILLION IN ASSETS WHEN IT FILED FOR BANKRUPTCY RESERVES NORMALLY ESTABLISHED TO PAY FOR INJURIES WERE VIRTUALLY NONEXISTENT ATTORNEYS INSURANCE INVESTIGATORS AND LAWSUITS ALLEGE THE MONEY WAS USED TO PAY FOR SUCH THINGS AS A 500000AYEAR LEASED CORPORATE JET AND YEARLY COMPENSATION OF BETWEEN 500000 AND 1 MILLION FOR FOUNDER DOUG RUEDLINGER HE OWNED BOTH THE DOUG RUEDLINGER INC AGENCY AND ITS UNITED INTERNATIONAL UNDERWRITER THROUGH A FIRM CALLED WHEATLAND GROUP HOLDINGS INC AS IT TURNS OUT UNITED WAS AUTHORIZED TO DO BUSINESS IN ONLY 10 STATES BUT THE POLICIES IT UNDERWROTE WERE IN 34 STATES AN ESTIMATED 18000 SCHOOLS WERE COVERED ONE REASON FOR MR RUEDLINGER'S SUCCESS WAS HIS RELATIONSHIP WITH THE NATIONAL FEDERATION OF STATE HIGH SCHOOL ASSOCIATIONS THE NONPROFIT RULESMAKING BODY FOR HIGHSCHOOL ATHLETICS ITS RECENTLY RETIRED TOP EXECUTIVE WAS A LONGTIME FRIEND OF MR RUEDLINGER WHO SAT ON THE BOARD OF UNITED INTERNATIONAL WHILE THE FEDERATION WAS ENCOURAGING MEMBERS TO BUY RUEDLINGER COVERAGE NOW THE FEDERATION FACES MOUNTING LITIGATION AND CONFLICTOFINTEREST QUESTIONS ITS STATEASSOCIATION MEMBERS ARE FURIOUS TO FIND THAT A POOL CREATED BY ANNUAL DEPOSITS TO COVER THE DEDUCTIBLE PORTION OF THEIR INSURANCE HAS ZERO RESERVES THE FEDERATION HAS FILED CLAIMS FOR THE MONEY ABOUT 300000 AGAINST RUEDLINGER'S OPERATIONS IN US BANKRUPTCY COURT IN TOPEKA MR RUEDLINGER BLAMES HIS COLLAPSE PARTLY ON ALL AMERICAN LIFE INSURANCE CO A CHICAGO UNDERWRITER OF SOME OF HIS NONCATASTROPHIC POLICIES THAT CANCELED CONTRACTS ALL AMERICAN A UNIT OF USLIFE CORP IS SUING DOUG RUEDLINGER INC ALLEGING BREACH OF CONTRACT AND FRAUD ALL AMERICAN WON'T COMMENT HE ALSO BLAMES HIS OWN MANAGERS SAYING THEY FAILED TO COLLECT MONEY DUE FROM REINSURERS THE COMPANIES THAT SHARE THE PRIMARY INSURER'S RISK DID RUEDLINGER EVER STOP PAYING CLAIMS IN THE PAST 12 YEARS NEVER NEVER NEVER SAYS MR RUEDLINGER WHOSE COMPANIES IN FACT PAID MILLIONS OF DOLLARS FOR ATHLETIC INJURIES BEFORE UNITED INTERNATIONAL ITS CATASTROPHICINSURANCE UNDERWRITER WAS SEIZED I'LL TAKE A LOT OF THE BLAME I WOULD LIKE TO BELIEVE THOUGH THAT IN THE WORLD OF MANAGEMENT TODAY THERE HAVE TO BE EXECUTIVES WHO ARE DELEGATORS MR RUEDLINGER WHO NEVER COMPLETED COLLEGE STARTED OUT IN THE STUDENT ACCIDENT BUSINESS 30 YEARS AGO DRIVING DUSTY BACK ROADS TO SMALL KANSAS SCHOOLS AND BURNING UP A CAR A YEAR HIS AVERSION TO BUSINESS SUITS AND HIS STRONG HANDSHAKE PUT COACHES AT EASE HIS BIG BREAK CAME WHEN HIS FRIEND BRICE DURBIN HEAD OF THE KANSAS STATE HIGH SCHOOL ACTIVITIES ASSOCIATION WAS NAMED TO LEAD THE FEDERATION OF STATE HIGHSCHOOL ASSOCIATIONS IN 1976 THE MEN SHARED A LOVE OF INTERSCHOLASTIC SPORTS MR DURBIN HAD BEEN A COACH AND MR RUEDLINGER WHO CONQUERED POLIO AS A CHILD A HIGHJUMP CHAMP BOTH WORRIED THAT SPORTS COULD FALL VICTIM TO SCHOOLS' FEARS OF LAWSUITS IN THE WAKE OF A 6 MILLION 1981 JUDGMENT AGAINST A WASHINGTON STATE SCHOOL OVER A FOOTBALL INJURY AT THE TIME MOST INSURANCE COMPANIES OFFERED STUDENTACCIDENT POLICIES LIMITED TO HALLWAY FALLS AND BROKEN LEGS AND SHUNNED CATASTROPHIC COVERAGE THE HIGHSCHOOL FEDERATION MADE MR RUEDLINGER ITS CONSULTANT AROUND 1980 ASKING FOR ADVICE ON INSURANCE OPTIONS HE SUGGESTED HIS OWN COMPANY AND HIS OWN COPYRIGHTED INSURANCE POLICY HELL YES IT'S A CONFLICT BUT IT'S DONE EVERYDAY SAYS MR RUEDLINGER MR DURBIN SAYS HE DIDN'T SEE ANY CONFLICT OF INTEREST EITHER IN USING MR RUEDLINGER'S OPERATION OR IN SITTING ON UNITED INTERNATIONAL'S BOARD ALONG WITH OTHER FEDERATION OFFICIALS MR DURBIN SAYS THE BOARD POSITION WAS UNPAID AND THAT FEES WHEN OFFERED WERE DONATED TO A FEDERATION DRUG PROGRAM ALTHOUGH UNITED INTERNATIONAL RECORDS SHOW A 250 PAYMENT FOR OUTSIDE DIRECTORS NEITHER MR DURBIN NOR THE FEDERATION GAINED FROM USING MR RUEDLINGER HE SAYS NEVER WOULD I HAVE BEEN INVOLVED IN SOMETHING LIKE THAT HE ADDS HOWEVER THE FEDERATION DID RECEIVE ROYALTIES PER PREMIUM THAT MR RUEDLINGER SAYS SOMETIMES REACHED 250000 A YEAR BESIDES AT THE TIME NO OTHER INSURANCE COMPANY MATCHED MR RUEDLINGER'S BOLD PLAN FOR 1 PER STUDENT PER YEAR TYPICALLY PAID BY THE SCHOOLS OR THE STATE ATHLETIC ASSOCIATIONS HIS POLICY PROVIDED LIFETIME MEDICAL REHABILITATION AND WORKLOSS PAYMENTS TO INJURED ATHLETES WHEN A STUDENT WAS INJURED THE PARENTS' MEDICAL INSURANCE POLICY WOULD COVER INITIAL BILLS WHEN BILLS EXCEEDED 10000 A RUEDLINGER REPRESENTATIVE APPROACHED THE PARENTS AND OFFERED TO PICK UP THE TAB FOR ADDITIONAL EXPENSES THERE WAS ONE CONDITION THE PARENTS HAD TO AGREE NOT TO SUE THE SCHOOL IF THEY DECIDED TO SUE THE RUEDLINGER POLICY PROVIDED 5 MILLION IN LIABILITY COVERAGE TO THE SCHOOL IT SEEMED WINWIN STUDENTS GOT MEDICAL COVERAGE SCHOOLS DIDN'T GET SUED IN RETURN MR RUEDLINGER MARKETED HIS PRODUCT TO HIGH SCHOOLS WITH THE FEDERATION'S BACKING MR DURBIN WROTE TO SCHOOL ADMINISTRATORS THAT THE FEDERATION HIGHLY RECOMMENDS AND HAS APPROVED THIS PLAN BECAUSE IT SERVES THE BEST INTERESTS OF BOTH THE PARTICIPATING STUDENTS AND THE INSURED SCHOOL AT ONE POINT 100 OF HIGH SCHOOLS IN 30 STATES HAD RUEDLINGER COVERAGE MR RUEDLINGER BECAME A FEDERATION FIXTURE ADDRESSING ANNUAL FUNCTIONS AND FERRYING MEMBERS TO MEETINGS FUNERALS AND RETIREMENT PARTIES IN HIS JET HE THREW THEM LAVISH 20000 PARTIES ABOARD RIVER BOATS WITH TOP NEW ORLEANS ENTERTAINERS HIS COMPANY SPONSORED FILMS ABOUT PROPER FOOTBALLTACKLING TECHNIQUES IN WHICH HE APPEARED IN 30SECOND PROMOS AND WERE SOLD BY THE FEDERATION THEN TWO YEARS AGO MAJOR CRACKS BEGAN APPEARING IN HIS OPERATION A GROUP OF REINSURERS AUDITED DOUG RUEDLINGER INC AND DISCOVERED THAT FORMER CHIEF EXECUTIVE GREG SMART HADN'T SUBMITTED CERTAIN CLAIMS FOR PAYMENTS FOR SEVERAL YEARS MR SMART WHO WAS ALSO TREASURER AT UNITED INTERNATIONAL WAS DISMISSED IN 1990 AND IS NOW SERVING A SENTENCE FOR USING COMPANY MONEY TO BUILD A PRIVATE HOME HE COULDN'T BE REACHED FOR COMMENT AT THE SAME TIME ALL AMERICAN UNDERWRITER FOR DOUG RUEDLINGER INC'S NONCATASTROPHIC ACCIDENT INSURANCE MADE ITS OWN INQUIRIES DISCOVERED CASHFLOW PROBLEMS AND SUBSEQUENTLY CANCELED ITS CONTRACT MR RUEDLINGER SAYS THAT THE ALL AMERICAN BUSINESS ACCOUNTED FOR THE BULK OF HIS REVENUE AND THAT WHEN THE COMPANIES PARTED WAYS HIS BANK SEIZED HIS ACCOUNTS WITH NO CASH FLOW AT UNITED INTERNATIONAL RHODE ISLAND OFFICIALS SEIZED THAT FIRM HALTING PAYMENTS TO INJURED ATHLETES ONE WAS BILL FOUTS III PARALYZED IN A TACKLE WHILE A 14YEAROLD FRESHMAN IN ANDERSON IND IN 1983 HIS PARENTS SIGNED THE WAIVER SAYING THEY WOULDN'T SUE IN EXCHANGE FOR LIFETIME MONTHLY PAYMENTS OF ABOUT 300 PLUS HOSPITAL COVERAGE WITH THAT MONEY MR FOUTS NOW 24 MANAGED A DEGREE OF INDEPENDENCE ATTENDING BALL STATE UNIVERSITY LIVING OFFCAMPUS AND GETTING ABOUT WITH A MOTORIZED WHEELCHAIR AND CUSTOMIZED VAN ALL OF A SUDDEN WITHOUT ANY WARNING OR NOTICE THEY CUT ME OFF IT REALLY THREW ME FOR A LOOP HE SAYS THE BIGGEST PART IS HAVING TO ASK FOR THINGS I NEVER HAD TO ASK FOR MONEY PEOPLE'S TIME MR FOUTS NOW RELIES ON HIS FATHER A 48YEAROLD GENERAL MOTORS WORKER TO PAY HIS HEALTHCARE BILLS ABOUT 800 A MONTH HE NEVER TELLS ME HE'S WORRIED BUT OF COURSE HE IS SAYS THE FATHER IT ELIMINATED AN AWFUL LARGE MEASURE OF HIS ABILITY TO BE ON HIS OWN THE YOUNGER MR FOUTS HAS A 15 MILLION CLAIM AGAINST DOUG RUEDLINGER INC BUT AT THIS POINT THERE ARE NO ASSETS THERE SOMEONE'S GOT THE MONEY WHERE IN THE HELL IS IT ASKS MAX HOWARD MR FOUTS' ATTORNEY ALL AMERICAN CLAIMS IN A LAWSUIT FILED IN FEDERAL COURT IN TOPEKA THAT INSURANCE PREMIUM PAYMENTS TO DOUG RUEDLINGER INC WHICH WERE SUPPOSED TO BE HELD IN A SEPARATE TRUST WERE DIVERTED TO OTHER PURPOSES INCLUDING LEASING A CORPORATE AIRPLANE AND CAPITALIZING MR RUEDLINGER'S UNITED INTERNATIONAL FOR 3 MILLION SIMILAR ALLEGATIONS OCCUR IN A SUIT UNITED INTERNATIONAL'S RECEIVER FILED IN THE SAME COURT AGAINST DOUG RUEDLINGER INC IT ASSERTS THAT SOME OF UNITED'S PREMIUMS FOR CATASTROPHIC AND LIABILITY INSURANCE WERE USED TO BUY ABOUT 2 MILLION WORTH OF DOUG RUEDLINGER INC PREFERRED STOCK IN AN EFFORT TO SHIFT ASSETS TO FAILING RUEDLINGER ENTITIES AND TO PAY PERSONAL ATTORNEY FEES FOR MR RUEDLINGER SOME MEMBERS OF MR RUEDLINGER'S STAFF SAID IN DEPOSITIONS THAT HE PAID FOR HIS PERSONAL EXPENSES THROUGH COMPANY CHECKS MADE OUT TO HIM ON A REGULAR BASIS FOR EXAMPLE VARIOUS DOUG RUEDLINGER INC CHECKS SIGNED BY MR RUEDLINGER SHOW PAYMENTS TO FLORIDA FEED STORES MR RUEDLINGER WHO LIVES IN NEW SMYRNA BEACH FLA WHERE HE OWNS HORSES SAYS HE PAID BACK WITH INTEREST ALL FUNDS USED FOR PERSONAL EXPENSES DEPOSITIONS FROM STAFF MEMBERS ALSO SAID DOUG RUEDLINGER INC ESSENTIALLY HAD NO RESERVES FOR INJURIES AS FAR BACK AS OCTOBER 1990 BUT NO ONE SEEMED TO NOTICE BECAUSE IT ALWAYS SEEMED TO SELL ENOUGH PREMIUMS AT 1 A STUDENT TO COVER CLAIMS AS MANY AS EIGHT MILLION STUDENTS WERE COVERED MR RUEDLINGER ESTIMATES HE MANAGED TO DO BUSINESS IN MOST STATES ALMOST UNNOTICED THANKS TO THE 1981 FEDERAL RISK RETENTION ACT ALLOWING GROUPS OF COMPANIES OR INDIVIDUALS TO BAND TOGETHER FOR LESSEXPENSIVE INSURANCE UNDER THE ACT THE GROUPS' INSURANCE TRANSACTIONS FELL OUTSIDE THE JURISDICTION AND SCRUTINY OF STATEINSURANCE DEPARTMENTS THE WHOLE IDEA IS TO NOT HAVE TO DEAL WITH THE 50 STATEINSURANCE COMMISSIONERS SAYS STEVE IMBER CHIEF ATTORNEY FOR THE KANSAS INSURANCE DEPARTMENT MAYBE THAT'S GOOD BUT IT'S NOT GOOD IN THIS SITUATION STILL THERE WERE EARLIER HINTS OF TROUBLE WITHIN MR RUEDLINGER'S OPERATIONS SINCE 1981 IN SUCH STATES AS MONTANA VIRGINIA KANSAS AND NEW JERSEY HE OR HIS COMPANIES HAD BEEN FORCED TO SURRENDER LICENSES PAY FINES OR MAKE VOLUNTARY PAYMENTS FOR SUCH THINGS AS SELLING POLICIES WITHOUT STATE AUTHORIZATION FEDERATION MEMBERS SCHOOLS AND PARENTS APPARENTLY DIDN'T KNOW THIS MAJOR UNDERWRITERS AND REINSURERS SEEMED TO BACK THE POLICY AS IT TURNS OUT THE MAJOR UNDERWRITERS FOR THE CATASTROPHIC COVERAGE IN THE PAST 12 YEARS FUND INSURANCE CO IN BERMUDA AND UNITED INTERNATIONAL WERE BOTH OWNED BY MR RUEDLINGER MOREOVER FOR MANY YEARS REINSURANCE WAS PURCHASED FROM COMPANIES FORMED OR OPERATED BY ATLANTA BUSINESSMAN ALAN TEALE RECENTLY INDICTED IN FEDERAL COURT IN ALABAMA FOR ALLEGEDLY COLLECTING MILLIONS OF DOLLARS IN PREMIUMS AND FAILING TO PAY CLAIMS HE PLEADED NOT GUILTY AS A RESULT UNITED INTERNATIONAL WAS LEFT WITH 3 MILLION IN UNCOLLECTIBLE REINSURANCE NOW SCHOOL DISTRICTS AND STATE ATHLETIC ASSOCIATIONS THAT BOUGHT RUEDLINGER COVERAGE ON THE FEDERATION'S ADVICE FIND THEMSELVES FACING SUITS FROM INJURED ATHLETES WE HAD NO SAY WHATSOEVER IN OUR COVERAGE WHICH MAKES THIS SO FRUSTRATING SAYS LANCE HARRISON SAFETY MANAGER WITH THE CHICAGO BOARD OF EDUCATION WHICH HAD TO BUY RUEDLINGER COVERAGE TO BELONG TO THE STATE ASSOCIATION THE BOARD IS A DEFENDANT IN A 50 MILLION SUIT FILED ON BEHALF OF A YOUNG QUADRIPLEGIC KENNETH JENNINGS HURT IN AN OCTOBER 1988 FOOTBALL GAME THERE APPARENTLY IS NO FINANCIAL SAFETY NET FOR PEOPLE LIKE MR JENNINGS ALTHOUGH MANY STATES MAINTAIN FUNDS THAT STEP IN WHEN INSURANCE COMPANIES FAIL THE FUNDS APPLY ONLY TO LOSSES INVOLVING STATELICENSED COMPANIES UNITED INTERNATIONAL WAS LICENSED ONLY IN RHODE ISLAND DESPITE THE BANKRUPTCIES MR RUEDLINGER REMAINS AN INSURANCE CONSULTANT RUNNING AN UNDERWRITING COMPANY IN BERMUDA FUND INSURANCE LAST SUMMER WHEN RHODE ISLAND TOOK OVER UNITED INTERNATIONAL HE WROTE FEDERATION MEMBERS SAYING HE WAS STILL IN BUSINESS WITH COVERAGE BACKED BY FUND INSURANCE AND CENTRE REINSURANCE COS IN NEW YORK HOWEVER KANSAS INSURANCE OFFICIALS CHECKED CENTRE REINSURANCE WASN'T INVOLVED DOUG RUEDLINGER INC SURRENDERED ITS KANSAS LICENSE MR RUEDLINGER REMAINS UNDAUNTED IT IS MY INTENT HE SAYS TO SEE MY POLICY AS THE WAVE OF THE FUTURE 9306210001 930621 INTERNATIONAL JAPAN ECONOMY POSTS QUARTERLY GAIN BUT SOME SEE REVERSAL IN CURRENT PERIOD BY JOHN BUSSEY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN GOT SOME GOOD ECONOMIC NEWS THE NATION'S GROSS NATIONAL PRODUCT IN THE JANUARY THROUGH MARCH QUARTER EXPANDED AT A 23 INFLATIONADJUSTED ANNUALIZED RATE OR 06 FROM THE PREVIOUS QUARTER THAT IS THE BEST PERFORMANCE IN QUITE SOME TIME INDEED GROSS DOMESTIC PRODUCT WHICH EXCLUDES NET INFLOWS OF INCOME FROM OVERSEAS TURNED POSITIVE FOR THE FIRST TIME IN FOUR QUARTERS EXPANDING AT AN ANNUALIZED RATE OF 27 OR 07 FROM THE PREVIOUS QUARTER BUT ECONOMISTS HERE SAY THE ECONOMY MAY BE HEADED BACK DOWN IN THE CURRENT QUARTER THEY SAY CERTAIN UNUSUAL FACTORS SKEWED THE JANUARY TO MARCH QUARTER'S NUMBERS AND THAT THE PERIOD'S PERFORMANCE WAS ALSO BOOSTED BY THE GOVERNMENT LOWERING ITS GNP STATISTICS FOR THE QUARTER ENDED DEC 31 THE STRONGER YEN WHICH HURTS EXPORTS AND JAPAN'S CURRENT POLITICAL TURMOIL ARE ALSO EXPECTED TO DEPRESS THE ECONOMY THIS SUMMER SOME ECONOMISTS HERE ARE USING THE TERM DOUBLEDIP TO DESCRIBE THE SPRING'S PERFORMANCE THE ECONOMY REMAINS IN A BUMPINGALONGTHEBOTTOM PHASE SAYS GEOFFREY BARKER CHIEF ECONOMIST AT BARING SECURITIES JAPAN LTD WE STILL AREN'T SEEING A SUSTAINED RECOVERY WE THINK WE HAVE A PRETTY ROUGH SUMMER BEFORE US THAT SAID THERE WERE SOME DEFINITE BRIGHT SPOTS IN THE JANUARY TO MARCH PERIOD PERSONAL CONSUMPTION WAS UP AS WAS PUBLIC INVESTMENT BUT THE FORMER WAS INDUCED PARTLY BY DESPERATE MANUFACTURERS AND MERCHANTS WHO SOUGHT TO BOOST RESULTS BEFORE THE MARCH 31 CLOSING OF THE FISCAL YEAR BY SLASHING PRICES INDEED AUTO SALES BOUNCED UP 17 IN MARCH THE FIRST GAIN IN NINE MONTHS MERCHANTS WARNED AT THE TIME THAT THEIR EFFORTS MIGHT HAVE ROBBED SALES FROM APRIL AND THEY WERE RIGHT AUTO SALES IN APRIL SANK 11 OTHER INDICATORS INCLUDING THOSE FOR CAPITAL SPENDING HAVE CONTINUED TO SLUMP IN RECENT MONTHS PUBLIC INVESTMENT WAS UP 65 FROM THE PREVIOUS QUARTER A REFLECTION OF THE GOVERNMENT'S EMERGENCY PUBLICSPENDING PACKAGE PASSED LAST YEAR CLEARLY THE STIMULUS PROGRAM IS BOOSTING THE ECONOMY AND SHOWS THE ENDURING STRENGTH OF THIS NATION UNLIKE THE US WHICH IS HOBBLED BY ITS NATIONAL DEBT JAPAN HAS THE ABILITY TO SPEND ITS WAY OUT OF RECESSION BASICALLY THE ECONOMY MOVED ONLY BECAUSE YOU HAD THIS STRONG GOVERNMENT SPENDING SAYS KENNETH S COURTIS ECONOMIST AT DEUTSCHE BANK AG NOTABLY THOUGH PUBLIC INVESTMENT ACCOUNTS FOR ONLY 7 OF GNP COMPARED WITH THE CONSUMER'S SHARE OF ROUGHLY 57 PUBLIC INVESTMENT IS UP 155 YEAR ON YEAR WHICH IS PRETTY STRONG STUFF SAYS MR BARKER BUT THE CRUCIAL THING IS YOU'VE GOT TO HAVE THE PARTICIPATION OF THE CONSUMER TO SUSTAIN ANY RECOVERY JAPANESE OFFICIALS ARE ALSO BRACING FOR THE IMPACT OF THE STRONG YEN ALTHOUGH THE RECENT POLITICAL PROBLEMS HAVE BROUGHT THE JAPANESE CURRENCY DOWN SOME IT IS STILL ROUGHLY 10 HIGHER AGAINST THE DOLLAR COMPARED WITH LATE FEBRUARY THE YEN LIKELY HAD LITTLE EFFECT ON THE JANUARY TO MARCH QUARTER LARGELY BECAUSE EXCHANGERATEINDUCED PRICE FLUCTUATIONS AREN'T PASSED THROUGH THE PIPELINE TO THE CONSUMER QUITE SO QUICKLY BUT THE EFFECT WILL PROBABLY BEGIN TO BE FELT THIS SUMMER AND IF EXPORTS ARE CRIMPED JAPAN'S ECONOMY COULD FEEL GREATER PAIN OFFSETTING THAT PAIN HOWEVER IS AN ADDITIONAL EMERGENCY PUBLICSPENDING PACKAGE THAT IS COMING ON LINE BUT THE FALL OF THE JAPANESE GOVERNMENT FRIDAY AFTER A NOCONFIDENCE VOTE PASSED THE DIET INJECTS ADDITIONAL UNCERTAINTY INTO THE EQUATION CONSUMERS AND BUSINESSES ALIKE MAY CHOOSE TO HUNKER DOWN AND CURTAIL SPENDING UNTIL THE POLITICAL SMOKE CLEARS 9306210156 930526 REVIEW & OUTLOOK EDITORIAL BILL AND ROBERTA THE SENATE CONFIRMED ROBERTA ACHTENBERG AS PRESIDENT CLINTON'S FAIRHOUSING OFFICER ON MONDAY WHICH IS FINE WITH US WE THINK PRESIDENTS DESERVE THE APPOINTEES THEY WANT SINCE THEY HAVE TO LIVE WITH THEM BUT THE ACHTENBERG APPOINTMENT STILL DESERVES SCRUTINY BECAUSE IT ILLUSTRATES WHY THIS ADMINISTRATION IS IN SO MUCH TROUBLE WE ARE NOT BY THE WAY REFERRING TO MISS ACHTENBERG'S OPEN LESBIANISM IN HIS EVERSUBTLE FASHION SENATOR JESSE HELMS FIRST ATTRIBUTED HIS OWN OPPOSITION TO THE FACT THAT SHE WAS A DAMN LESBIAN THIS ONLY INSPIRED A BACKLASH AND OBSCURED THE MAIN ISSUE WHICH IS THAT PRESIDENT CLINTON HAS APPOINTED A WOMAN IN THE VANGUARD OF LIBERAL INTOLERANCE OF TRADITIONAL AMERICAN SOCIETY SPECIFICALLY AS A MEMBER OF THE SAN FRANCISCO BOARD OF SUPERVISORS MS ACHTENBERG USED GOVERNMENT POWER TO PUNISH THE BOY SCOUTS OF AMERICA IN A SOCIETY WITH TOO MANY FATHERLESS CHILDREN WE WOULD HAVE THOUGHT THE BOY SCOUTS WERE A GOOD THING BUT MISS ACHTENBERG WAS OFFENDED BECAUSE THIS PRIVATE VOLUNTARY ASSOCIATION DIDN'T ALLOW OPENLY GAY SCOUT LEADERS SHE DECIDED TO TEACH THOSE 12YEAROLD BIGOTS A LESSON AS A BOARD MEMBER OF THE BAY AREA UNITED WAY MISS ACHTENBERG LOBBIED TO HAVE THAT PRIVATE CHARITY CUT OFF FUNDING TO THE BOY SCOUTS THEN IN DECEMBER 1992 SHE USED HER POWER IN SAN FRANCISCO TO INTRODUCE A SUCCESSFUL RESOLUTION TO DIRECT THE CITY TO CUT ITS FINANCIAL TIES TO THE BANK OF AMERICA SHE WAS FURIOUS WITH THE BANK FOR REVERSING ITS EARLIER DECISION TO STOP DONATING TO THE BOY SCOUTS OVER THE SCOUTLEADER GAY BAN SHE WAS ALSO INSTRUMENTAL IN GETTING THE SCOUTS BANNED FROM ASSOCIATION WITH THE CITY'S PUBLIC SCHOOLS AS IF INNERCITY KIDS DIDN'T NEED MALE ROLE MODELS WHEN THE SCOUTS AND OTHERS OBJECTED TO THIS RAW DISPLAY OF GOVERNMENT POWER MS ACHTENBERG WAS QUOTED AS SAYING THAT'S JUST TOUGH THE SAN FRANCISCO CHRONICLE ALSO QUOTED HER AS SAYING DO WE WANT CHILDREN LEARNING THE VALUES OF AN ORGANIZATION THAT PROVIDES CHARACTER BUILDING EXCLUSIVELY FOR STRAIGHT GODFEARING MALE CHILDREN NONE OF THESE FACTS ARE IN DISPUTE YET MS ACHTENBERG TRIED TO EVADE THEM DURING HER SENATE HEARING ASKED BY SENATOR LAUCH FAIRCLOTH IF SHE HAD URGED THE CITY TO KEEP THE SCOUTS OUT OF PUBLIC SCHOOLS SHE SAID I MAY HAVE I'M NOT I'M NOT I AM NOT CURRENTLY RECALLING THE PRECISE INCIDENT THAT YOU ARE DESCRIBING IT DOES NOT SOUND LIKE SOMETHING I WOULD NOT HAVE DONE BUT I DON'T RECALL HAVING VOTED SPECIFICALLY FOR THAT MEASURE BUT IT'S QUITE POSSIBLE THAT I DID THIS RECORD WAS TOO MUCH FOR 31 SENATORS WHO VOTED AGAINST HER CONFIRMATION INCLUDING FIVE DEMOCRATS INTERESTINGLY 10 OTHER SENATORS MANAGED NOT TO BE AROUND FOR HER CONFIRMATION VOTE AND MANY OF THOSE WHO DID VOTE TO CONFIRM DID SO ONLY WITH THE GRAVEST RESERVATIONS THERE IS NO QUESTION THAT MS ACHTENBERG AUTHORED THE RESOLUTION AND THERE IS NO QUESTION IN MY MIND THAT SHE INTENDED TO PUNISH THE BANK OF AMERICA FOR ITS PRIVATE SUPPORT OF THE BOY SCOUTS DECLARED KANSAS REPUBLICAN NANCY KASSEBAUM WHO IS NO GAYBASHER I AM TROUBLED WHEN PUBLIC OFFICIALS ATTEMPT TO USE POLITICAL POWER TO DISCIPLINE THOSE WHO DISAGREE WITH THEM AS WITH THE GAYS IN THE MILITARY FIGHT THE BEST MS ACHTENBERG'S SUPPORTERS COULD DO WAS TO ATTRIBUTE THE DEBATE TO ANTIGAY PREJUDICE AS IF MS ACHTENBERG HADN'T SHOWN SUBSTANTIAL PREJUDICE HERSELF AGAINST THE BOY SCOUTS IN SHORT THE GAY ACTIVISTS WANT TO BORROW THE LANGUAGE OF CIVIL RIGHTS FOR THEIR CAUSE YET THEY WON'T RECOGNIZE THEIR OWN INTOLERANCE OF TRADITIONAL SOCIAL MORES THE BROADER SOCIETY DOESN'T WANT TO PUNISH GAYS BUT IT DOESN'T WANT TO ENDORSE THEIR LIFESTYLE EITHER ESPECIALLY NOT WHEN IT COMES TO INSTRUCTING CHILDREN MR CLINTON THE CANDIDATE SEEMED TO UNDERSTAND THIS DISTINCTION BUT PRESIDENT CLINTON HAS GONE OUT OF HIS WAY TO APPOINT NOT ONLY THE ACHTENBERGS BUT ALSO THE LANI GUINIERS AND SHELDON HACKNEYS WHO IN THE NAME OF DIVERSITY AND TOLERANCE ARE IN FACT GROSSLY INTOLERANT THEY WOULD HARNESS STATE POWER TO STEAMROLLER THE INDIVIDUALS AND PRIVATE GROUPS WHOSE MORES THEY DISLIKE WHAT WE HAVE HERE IS AN INTELLECTUAL LIBERAL ELITE THAT IS FAR FROM THE MIDDLEAMERICAN VALUES THAT CANDIDATE CLINTON CLAIMED TO CELEBRATE PUT IT THIS WAY A PRESIDENCY THAT SIDES WITH THE VALUES OF ROBERTA ACHTENBERG OVER THE VALUES OF THE BOY SCOUTS IS HEADING FOR A BIG FALL SEE RELATED LETTER LETTERS TO THE EDITOR BOY SCOUTS' INTOLERANCE SHOULDN'T BE SUBSIDIZED WSJ JUNE 21 1993 9305260011 YY93 MM06 9306210132 930512 RULE OF LAW THE NEW INTOLERANCE BY CLARENCE L THOMAS THE FOLLOWING IS EXCERPTED FROM A SPEECH JUSTICE CLARENCE THOMAS GAVE EARLIER THIS MONTH IN GEORGIA AT MERCER UNIVERSITY AND AT THE GEORGIA PUBLIC POLICY FOUNDATION WHEN I LEFT GEORGIA OVER 25 YEARS AGO THE FAMILIAR SOURCES OF UNKIND TREATMENT AND INCIVILITY WERE THE BIGOTS TODAY IRONICALLY A NEW BRAND OF STEREOTYPES AND AD HOMINEM ASSAULTS ARE SURFACING ACROSS THE NATION'S COLLEGE CAMPUSES IN THE NATIONAL MEDIA IN HOLLYWOOD AND AMONG THE INVOLUNTARILY ORDAINED CULTURAL ELITE AND WHO ARE THE TARGETS THOSE WHO DARE TO QUESTION CURRENT SOCIAL AND CULTURAL GIMMICKS THOSE WHO INSIST THAT WE EMBRACE THE VALUES THAT HAVE WORKED AND REJECT THOSE THAT HAVE FAILED US THOSE WHO DARE TO DISAGREE WITH THE LATEST IDEOLOGICAL FAD SIGNS OF THIS BEGAN CREEPING UP DURING MY COLLEGE YEARS BACK THEN WEARING AN AFRO HAIR STYLE WAS IN VOGUE OFTEN I HEARD IT SAID YOU WEREN'T REALLY BLACK IF YOU DIDN'T WEAR AN AFRO THOUGH I OCCASIONALLY WORE MY HAIR IN THIS STYLE I CERTAINLY DIDN'T DEFINE MYSELF THROUGH MY BARBER THIS CONFORMIST MINDSET STRUCK ME AS PARTICULARLY INCREDIBLE SINCE WE HAD BARELY FREED OURSELVES FROM BEING JUDGED BY OTHERS ON THE BASIS OF OUR SKIN LATER IN LIFE I WOULD BE TOLD THAT I DID NOT THINK BLACK BY WHITE CRITICS NO LESS DURING THE 1980S I WATCHED WITH SHOCK AND DISMAY HOW FRIENDS WERE TREATED FOR MERELY DISAGREEING WITH WHAT MY FRIEND TOM SOWELL REFERRED TO AS THE NEW ORTHODOXY AS A BLACK PERSON STRAYING FROM THE TENETS OF THIS ORTHODOXY MEANT THAT YOU WERE A TRAITOR TO YOUR RACE YOU WERE NOT A REAL BLACK AND YOU WERE FORCED TO PAY FOR YOUR IDEOLOGICAL TRESPASS OFTEN THROUGH SYSTEMATIC CHARACTER ASSASSINATION THE MODERNDAY VERSION OF THE OLD PUBLIC FLOGGINGS INSTEAD OF SEEING SIGNS ON PUBLIC DOORS SAYING NO COLOREDS ALLOWED THE SIGNS I SAW WERE NO NONCONVENTIONAL IDEAS ALLOWED THIS TACT OF DAMNING THE DISSENTER BY SKEWERING HIS CHARACTER RATHER THAN BY SUBSTANTIVELY CRITICIZING HIS VIEWS OCCURS WHILE UNYIELDING PRAISE IS HEAPED ON THOSE WHO WRITE SPEAK AND THINK THE LANGUAGE OF THE NEW ORTHODOXY THEIR ASSERTIONS GO UNCHALLENGED UNTESTED AND THEN ARE PASSED ON TO OUR CHILDREN AS TRUISMS THE ULTIMATE EFFECT IS THAT MANY COWER IN FEAR OF SPEAKING OUT PUBLICLY ON CERTAIN ISSUES OR POLICIES DUE TO THE UNRELENTING PERSONAL ATTACKS THAT ARE LIKELY TO FOLLOW THIS IS WHAT I REFER TO AS THE NEW INTOLERANCE IN MANY WAYS IT IS JUST THE SAME OLD THING WE'VE SEEN BEFORE JUST AS INVIDIOUS AND PERHAPS MORE PERVASIVE THAT THE INCIVILITY BLACK AMERICANS SUFFERED THROUGHOUT MUCH OF THIS CENTURY ITS PERNICIOUSNESS LIES IN ITS MASQUERADE CLEVERLY THE PURVEYORS OF THE NEW INTOLERANCE CLAIM LEGITIMACY IN THE NAME OF FOSTERING TOLERANCE SENSITIVITY OR A SENSE OF COMMUNITY YET IN MY EXPERIENCE THESE POPULAR BUZZWORDS ARE MERELY TROTTED OUT AS JUSTIFICATIONS IN AN ATTEMPT TO INTIMIDATE AND SILENCE THOSE WHO DARE TO QUESTION POPULAR POLITICAL SOCIAL OR ECONOMIC FADS TO DEFEND THIS TURF FROM CRITICISM COMPETING IDEAS AND POINTS OF VIEW ARE IGNORED AND THE JUGULAR OF THE DISSENTER VENGEFULLY SLASHED AT DOES A BLACK MAN INSTANTANEOUSLY BECOME INSENSITIVE A DUPE OR AN UNCLE TOM BECAUSE HE HAPPENS TO DISAGREE WITH THE POLICY OF AFFIRMATIVE ACTION IS IT ANY MORE JUSTIFIED TO HURL INVECTIVES AT HIM FOR WHAT HE BELIEVES THAN TO CALL HIM NAMES FOR THE COLOR OF HIS SKIN IN BOTH INSTANCES A MAN'S REPUTATION IS DISPARAGED AND HIS NAME SULLIED IN NEITHER INSTANCE IS HE TREATED AS AN INDIVIDUAL IS IT REALLY ANY MORE LAUDABLE TO MAKE A MAN AFRAID TO EXPRESS HIS BELIEFS THAN IT IS TO MAKE HIM ASHAMED FOR THE COLOR OF HIS SKIN DOES IT MAKE SENSE TO CRITICIZE SOMEONE WHO SAYS ALL BLACKS LOOK ALIKE THEN PRAISE THOSE WHO INSIST THAT ALL BLACKS THINK ALIKE ONE OF THE THINGS I LOOKED FORWARD TO WHEN I FIRST WENT TO WASHINGTON WAS THE OPPORTUNITY TO DEBATE AND DISCUSS DIFFICULT ISSUES WITH THOSE WHO HAD COMPETING IDEAS THE CLOSEST I CAME TO THIS ENVIRONMENT WERE MY DEALINGS WITH MY PERSONAL STAFF DURING MY DAYS AS CHAIRMAN OF THE US EQUAL EMPLOYMENT OPPORTUNITY COMMISSION THEY CHALLENGED ME WE DEBATED WE DISAGREED WE SAW ISSUES IN WAYS WE HADN'T SEEN THEM BEFORE THE UNFETTERED EXCHANGES WERE LIBERATING WHEN I ARRIVED IN WASHINGTON I JUST ASSUMED THAT ALTHOUGH THE LEGITIMACY OF A PERSON'S IDEAS WERE FAIR GAME HIS CHARACTER WAS NOT SO YOU CAN IMAGINE HOW SURPRISED AND DISAPPOINTED I WAS TO FIND THAT THE REVERSE WAS TRUE MANY ISSUES WERE OFF LIMITS BUT AD HOMENIUM ATTACKS WERE NOT THOSE WHO HAD THE TEMERITY TO BROACH THESE SUBJECTS AND HEAVEN FORBID ACTUALLY EXPRESS A VIEW CONTRARY TO THE NEW ORTHODOXY WERE SUMMARILY DISMISSED AS SELLOUTS OR INSENSITIVE THIS WAS ESPECIALLY TRUE FOR THOSE OF US WHO HAPPENED TO BE BLACK AS SOON AS I BEGAN WORKING IN THE REAGAN ADMINISTRATION I WAS QUICKLY AND CAVALIERLY DESCRIBED AS AN ULTRACONSERVATIVE LATER I WOULD BE CALLED WORSE THINGS FEW FLINCHED AT THE HYPOCRISY OF IT ALL AND FOR THOSE WHO HAD THE MISFORTUNE OF NOT BEING BLACK WELL THEY WERE RACISTS BIGOTS FASCISTS OR NEANDERTHALS I'M STILL WAITING TO HEAR THE CRIES OF INSENSITIVITY ABOUT THE CASUAL USE OF THOSE EPITHETS THE SILENCE IS DEAFENING IT IS NOT SURPRISING THAT THIS NEW INTOLERANCE HAS A DEVASTATING CHILLING EFFECT I CANNOT TELL YOU HOW MANY PEOPLE HAVE APPROACHED ME IN AIRPORTS RESTAURANTS OR ON THE STREET ONLY TO WHISPER HOW MUCH THEY AGREED WITH ME OR ABOUT HOW THEY THINK WE NEED TO GET BACK TO BASICS IN THIS COUNTRY WHILE IT'S HEARTENING TO KNOW THAT THERE IS AN UNDERCURRENT OF COMMON SENSE RUNNING THROUGH OUR COUNTRY TODAY IT IS SADDENING TO KNOW THAT SO MANY ARE FEARFUL OF CHALLENGING THE ADVOCATES OF THIS NEW INTOLERANCE OF COURSE THE RELUCTANCE IS UNDERSTANDABLE BEING THEIR VICTIM IS NO FUN IT IS NO MORE ENJOYABLE THAN IT WAS 25 OR 30 YEARS AGO WHEN WE FEARED FOR OUR SAFETY IF CAUGHT WALKING IN THE WRONG NEIGHBORHOOD AFTER DARK IT IS IMPERATIVE THAT WE RECOGNIZE THAT WHERE BLACKS WERE ONCE INTIMIDATED FROM CROSSING RACIAL BOUNDARIES WE NOW FEAR CROSSING IDEOLOGICAL BOUNDARIES AND THE INTOLERANCE AND INCIVILITY THAT FUEL BOTH TYPES OF INTIMIDATION ARE REPREHENSIBLE JUST AS SO MANY WORKED TIRELESSLY TO END THE UNDIGNIFIED UNCIVIL TREATMENT OF BLACKS IN THIS COUNTRY IT IS INCUMBENT UPON ALL OF YOU TO DO YOUR PART IN ORDER THAT THE NEW INTOLERANCE DOES NOT SUCCEED IN STIFLING THE FREE EXCHANGE OF IDEAS WOMEN HAVE THE RIGHT NOT TO AGREE WITH THE FEMINIST AGENDA AND NOT TO BE PERSONALLY ATTACKED FOR IT BLACKS HAVE THE RIGHT TO CRITICIZE WELFARE POLICIES AND NOT TO BE LASHED BY THE CULTURAL ELITE FOR DOING SO IF YOU SUCCUMB TO SELFCENSORSHIP THEN THE GAINS WE HAVE SEEN ARE HOLLOW IF WE LOSE THIS BATTLE WE RISK FINDING OURSELVES ONCE AGAIN JUDGED NOT FOR OUR INDIVIDUAL IDEAS OR CONDUCT BUT ONLY FOR OUR SKIN COLOR OR SOME OTHER IMMUTABLE CHARACTERISTIC SEE RELATED LETTER LETTERS TO THE EDITOR CLARENCE THOMAS'S NEW MARTYRDOM' WSJ JUNE 21 1993 9305120093 YY93 MM06 9306210011 930510 ENVIRONMENT AIRCONDITIONER FIRMS PUT CHILL ON PLANS TO PHASE OUT USE OF CHLOROFLUOROCARBONS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL THE US AND MORE THAN 80 OTHER COUNTRIES REACHED A LANDMARK PACT LAST YEAR TO HALT THE PRODUCTION OF OZONEEATING CHLOROFLUOROCARBONS OR CFCS AFTER 1995 BUT THE GLOBAL CAMPAIGN TO PHASE OUT THE USE OF THE CHEMICAL COMPOUNDS IS STALLED IN THE SUBBASEMENTS OF CORPORATIONS AND BUSINESSES AROUND THE WORLD THE CHIEF HOLDUP A MULTIBILLIONDOLLAR MARKETING BRAWL DUBBED THE CHILLER WARS THIS INTERNECINE CONTEST IS BEING WAGED AMONG THE PRODUCERS OF THE NEXT GENERATION OF INDUSTRIAL AIR CONDITIONERS CALLED CHILLERS THAT ARE FREE OF CFCS TWO OF THE LARGEST COMPANIES CARRIER CORP AND TRANE CO ARE COMPETING FOR THE LARGEST SLICE OF THAT EMERGING MARKET THEY ARE ATTACKING EACH OTHER'S CHOICE OF OZONEFRIENDLY ALTERNATIVES AS EITHER DANGEROUS TO HUMAN HEALTH OR THE ENVIRONMENT WE CALL IT FEARMONGERING MARKETING SAYS JEAN LUPINACCI CHIEF OF THE TECHNOLOGY AND SUBSTITUTES BRANCH OF THE ENVIRONMENTAL PROTECTION AGENCY'S GLOBAL CHANGE DIVISION MS LUPINACCI CITES CARRIER A UNIT OF UNITED TECHNOLOGIES CORP AND TRANE AS THE PRINCIPAL CULPRITS SLOWING THE CORPORATE PHASEOUT OF CFCS THESE COMPANIES ARE PLAYING ON PEOPLE'S FEARS WITHOUT IDENTIFYING THE REAL CONCERNS I'VE NEVER SEEN ANYTHING QUITE LIKE THIS BEFORE MEANWHILE BUFFETED BY THE COMPANIES' CONFLICTING CLAIMS FRUSTRATED CORPORATE ENGINEERS AND BUILDING MANAGERS CONTEND THEY AREN'T SURE WHAT TO DO SO MOST DO NOTHING NOBODY'S WILLING TO MAKE A DECISION WE'RE ALL HOPING SOMEBODY ELSE TAKES THE PLUNGE FIRST SAYS MICHAEL GLYNN CHIEF ENGINEER OF CHICAGO'S 97STORY JOHN HANCOCK CENTER WITH THE CFC PRODUCTION DEADLINE LOOMING FEWER THAN 5 OF THE WORLD'S 112000 INDUSTRIAL AIR CONDITIONERS OR CHILLERS 80000 OF WHICH ARE IN THE US HAVE BEEN CONVERTED TO NONCFC PRODUCTS INDUSTRY OFFICIALS ESTIMATE IN JUST ONE CITY CHICAGO ONLY TWO BUILDING OWNERS HAVE APPLIED FOR A CITY VARIANCE TO CONVERT ANY OF THE ESTIMATED 1500 CFC CHILLERS DOWNTOWN TO USE ALTERNATIVE COMPOUNDS EPA OFFICIALS WARN THAT MILLIONS OF OFFICE WORKERS AROUND THE COUNTRY COULD FACE SOME LONG HOT SUMMERS IF BUILDING OWNERS DON'T START CONVERTING TO CFCFREE COOLANTS IMMEDIATELY THE CHILLER INDUSTRY ONLY PRODUCES ABOUT 6000 NEW INDUSTRIAL AIR CONDITIONERS A YEAR OLD ONES CAN'T BE REPLACED OR CONVERTED DURING THE SUMMER WHEN THEY ARE IN CONSTANT USE WE DON'T WANT PEOPLE TO LOOK AROUND IN '95 AND SAY OH MY GOD WHAT DO WE DO' SAYS STEPHEN SEIDEL ACTING DIRECTOR OF THE EPA'S STRATOSPHERIC PROTECTION DIVISION THE COST OF ADAPTING TO LIFE WITHOUT CFCS IS EXPECTED TO RUN INTO THE TENS OF BILLIONS OF DOLLARS JUST AMONG INDUSTRIAL AIRCONDITIONER USERS THE PRICE TAG IS ESTIMATED AT NEARLY 8 BILLION ADD TENS OF BILLIONS FOR PHASING OUT CFC COOLANT USE IN THE SUPERMARKET AND RESTAURANT INDUSTRY AND IN AUTO AIR CONDITIONERS WHERE CONVERSIONS TO NONCFC SYSTEMS ARE LIKELY TO COST ABOUT 250 EACH HOME AIR CONDITIONERS USE LESS DAMAGING HYDROCHLOROFLUOROCARBONS OR HCFCS WHICH AREN'T LIKELY TO BE PHASED OUT FOR AT LEAST A DECADE THOSE WHO INTEND TO KEEP USING CFCS FOR A FEW YEARS UNTIL SWITCHING TO CFCFREE COOLANTS WHICH IS LEGAL ALSO FACE SHARPLY HIGHER COSTS CFCS HAVE SKYROCKETED TO ABOUT 7 A POUND FROM 50 CENTS A DECADE AGO WHICH INCLUDES A 335 A POUND FEDERAL TAX THAT KICKED IN THIS YEAR CFC PRICES ALREADY ROUGHLY EQUAL TO THE RECENTLY DEVELOPED ALTERNATIVES ARE EXPECTED TO KEEP CLIMBING AS THE PRODUCTION DEADLINE NEARS AND HOARDING SETS IN THERE IS ANOTHER PROBLEM WITH PLANNING TO CONTINUE USING CFCS AFTER THE PRODUCTION DEADLINE THERE WON'T BE ENOUGH CFCS DUPONT CO THE LARGEST CFC MAKER ESTIMATES THAT THE POOL OF CFCS AVAILABLE AFTER THE BAN WILL ONLY SUPPLY ABOUT 25 OF CURRENT NEEDS DUPONT ANNOUNCED IN MARCH THAT IT WOULD QUIT MAKING CFCS BY THE END OF 1994 ONE YEAR AHEAD OF SCHEDULE CFC USERS GRUMBLE THAT THE CHEMICAL'S PRODUCERS INCLUDING DUPONT ALLIEDSIGNAL INC AND ELF ATOCHEM SA WHO ARE ALLOCATING THEIR DWINDLING PRODUCTION ALREADY ARE REAPING HUGE PROFITS FROM A CAPTIVE MARKET THE COMPANIES WHILE NOT WILLING TO DISCLOSE THEIR CFC PROFITS RESPOND THAT A PORTION OF THEIR CFC WINDFALL IS OFFSET BY THE COST OF CLOSING DOWN CFC PLANTS IT IS THE SPARRING BETWEEN CHILLER MAKERS THAT IS MOST OFTEN BLAMED BY REGULATORS AND BUILDINGINDUSTRY OFFICIALS FOR THE CONFUSION AND INACTION AMONG CFC USERS FOR INSTANCE CARRIER ATTACKS TRANE BY CITING LABORATORY STUDIES TWO YEARS AGO THAT SHOWED THAT TRANE'S FAVORED COOLANT HCFC123 CAUSED BENIGN TUMORS IN RATS CARRIER ALSO NOTES THAT WORKERS HANDLING THE COOLANT ARE ALLOWED ONLY RELATIVELY LOW EXPOSURE LEVELS FURTHER SAYS CARRIER HCFC123 STILL CONTAINS A SMALL AMOUNT OF CHLORINE THE ELEMENT IN CFCS THAT ACTUALLY DAMAGES THE OZONE LAYER TRANE WHOSE MACHINES ACCOUNT FOR MORE THAN HALF THE CHILLERS IN THE COUNTRY COUNTERS THAT THE SAFETY CONCERNS ABOUT HCFC123 ARE OVERBLOWN WHAT'S MORE CARRIER'S COOLANT OF CHOICE THE HYDROFLUOROCARBON HFC134A CAUSES TOO MUCH GLOBAL WARMING TRANE ASSERTS TRANE MACHINES WHICH OPERATE AT RELATIVELY LOW PRESSURES CAN'T USE HFC134A WHICH IS DESIGNED TO WORK AT HIGH PRESSURES MR GLYNN OF THE HANCOCK CENTER HERE HOPED HE WOULD LEARN WHAT TO DO WITH HIS BUILDING'S CFC CHILLERS WHEN THE COUNTRY'S LARGEST AIRCONDITIONING CONVENTION WAS HELD IN CHICAGO EARLIER THIS YEAR INSTEAD AFTER REVIEWING ACRES OF EQUIPMENTHE LEFT THE SHOW MORE CONFUSED THAN EVER EVERYBODY'S TELLING YOU DIFFERENT STORIES AND ATTACKING WHAT THE OTHER GUY MAKES MR GLYNN COMPLAINS AS FAR AS THE EPA IS CONCERNED WE CONSIDER ALL THE ALTERNATIVES ON THE MARKET ACCEPTABLE REPLACEMENTS FOR CFCS SAYS MS LUPINACCI THE CHEMICAL COMPANIES THAT MAKE CFCS AND ALTERNATIVES AREN'T DIRECTLY TAKING SIDES IN THE CHILLER WARS BUT DUPONT WHICH MAKES THE BROADEST RANGE OF CFC ALTERNATIVES INCLUDING HCFC123 AND HFC134A SAYS IT IS HAPPY TO HAVE CUSTOMERS CHOSE ANY ITEM ON THE MENU LONDONBASED IMPERIAL CHEMICAL INDUSTRIES PLC SAYS THAT THERE IS A PLACE FOR ALL ALTERNATIVES ALTHOUGH ICI IS MOSTLY PROMOTING CHLORINEFREE HFC134A CARRIER MAINTAINS IT HAS SCIENCE AND SAFETY CONCERNS ON ITS SIDE IN JULY 1991 AN INDUSTRY CONSORTIUM TESTING CFC ALTERNATIVES REPORTED THAT HCFC123 CAUSED BENIGN TUMORS IN FEMALE RATS EXPOSED TO LARGE AMOUNTS OF THE REFRIGERANT CARRIER SUSPENDED THE SALE OF HCFC123 AT THAT TIME WHEN THE EPA CUT THE ALLOWABLE LONGTERM EXPOSURE LEVEL FOR HCFC123 TO 10 PARTS PER MILLION FROM 100 PPM FOLLOWING THE RAT STUDY CARRIER SAID THAT WAS TOO GREAT A RISK FOR WORKERS OPERATING CHILLERS CARRIER HAS SOME FUNDAMENTAL CONCERNS ABOUT THE SAFETY OF THAT CHEMICAL SAYS SPOKESMAN JON SANDBERG ALLOWABLE EXPOSURE LEVELS FOR HFC134A ARE NOW SET AT 1000 PPM OR THE SAME AS THE CFCS IT IS REPLACING THE EPA SAYS THE HFC134A EXPOSURE LEVEL MAY BE CUT TO 500 PPM CARRIER'S SAFETY CONCERNS DOVETAILED NICELY WITH A 70 MILLION CAPITALSPENDING PLAN ALREADY UNDER WAY AT THE TIME OF THE RAT STUDY TO DEVELOP CHILLERS USING THE ALTERNATIVE COOLANT HFC 134A WE WERE ALREADY HEADED DOWN THE 134A PATH MR SANDBERG CONCEDES AT TRANE GENE SMITHART DIRECTOR OF MARKETING FOR HEAVY MACHINERY POINTS OUT THAT AN EPA STUDY FOUND EXPOSURE RATES FOR WORKERS SERVICING EQUIPMENT USING HCFC123 REMAINED AT ABOUT 1 PPM WELL UNDER THE ALLOWABLE LEVEL AND A SECOND RAT STUDY CONDUCTED LAST YEAR THIS TIME WITH MALE RATS DIDN'T PRODUCE ANY TUMORS SOME RATS DID DEVELOP ENLARGED TESTICLES HE NOTES THE CHILLER WARS DON'T SHOW SIGNS OF ENDING SOON EVEN THOUGH TRANE SAYS IT IS TIME FOR THE INDUSTRY TO WORK TOGETHER TO PHASE OUT CFCS MARKET INFIGHTING HAS CREATED NOTHING BUT DISTRUST AND THAT HAS LED TO INACTION BY CHILLER OWNERS SAYS MR SMITHART BUT CARRIER ISN'T ABOUT TO CALL A TRUCE SAYS MR SANDBERG THERE HAS BEEN CONFLICTING INFORMATION AND DISAGREEMENTS THAT'S THE MARKETPLACE SEE RELATED LETTERS LETTERS TO THE EDITOR CFCS DEBATE REFLECTS THE POLITICS OF CRISIS WSJ JUNE 21 1993 9305100146 YY93 MM06 9306210010 930521 HEARTS AND MINDS NANNIES AND MOTHERS STRUGGLE OVER ROLES IN RAISING CHILDREN A SUBTLE TUGOFWAR ERUPTS OVER WHAT IS FOR DINNER WHO ARRANGES PLAY DATES SHIFTING INTO PLAYDOH GEAR BY CLARE ANSBERRY STAFF REPORTER OF THE WALL STREET JOURNAL EVERY EVENING AT ABOUT 6 PM IN KITCHENS AND ON FRONT DRIVEWAYS ACROSS THE COUNTRY A SUBTLE POWER STRUGGLE ERUPTS PITTING TWO WOMEN AGAINST EACH OTHER ELAINE CAMPBELL COMES HOME EAGER TO HUG HER YOUNG CHILD AFTER A LONG DAY AS A CHICAGO INVESTMENT BANKER THE BABY LOOKS AT HER NANNY WHO IS LEAVING FOR THE NIGHT AND BURSTS INTO TEARS ALTHOUGH SHE KNOWS HER CHILDREN LOVE HER MS CAMPBELL CAN'T HELP BUT FEEL PANGS OF JEALOUSY IT IS SOMETHING SHE ACCEPTED WHEN SHE FIRST HIRED A NANNY I DECIDED MY CHILD WOULD LOVE HER MORE THAN ME AND THERE WAS NOTHING I COULD DO ABOUT IT SHE SAYS IT'S THE DOMESTIC BATTLE OF THE 1990S THIS ONE OF WARRING MATERNALISM AND CULTURES ON ONE SIDE IS THE CAREER MOTHER WHO FOR A LARGE PART OF THE DAY TURNS OVER THE MOST PRECIOUS THING IN HER LIFE TO ANOTHER WOMAN MANY TIMES FEARING THAT HER CHILD WILL LOVE THE NEWCOMER MORE HER HOME AND PRIVATE SPACE BECOME THE DOMICILE OF ANOTHER WHO DOESN'T FOLD TOWELS OR WIPE HIGHCHAIRS THE SAME WAY ON THE OTHER IS THE CAREGIVER WITH DIFFERENT SOCIAL VIEWS DISCIPLINE STYLES EATING AND TV HABITS NOT TO MENTION PRIORITIES HAVING CHOSEN HER WORK BECAUSE SHE LOVES CHILDREN SHE QUIETLY WONDERS WHY THE MOTHER HAD KIDS IF SHE WASN'T GOING TO SPEND HER DAYS AT HOME LISTEN TO THE DYNAMICS I KNOW MOTHERS RESENT ME BECAUSE THEIR KIDS TAKE TO ME SAYS FAY VINCENT OF PITTSBURGH A FORMER NANNY WHO SAYS SHE WAS DISMISSED FROM ONE JOB AFTER THE CHILD BEGAN SCREAMING WHEN SHE LEFT FOR THE EVENING YOU WANT SOMEONE WHO IS LOVING BUT NOT SO LOVING YOU'RE DISPLACED SAYS KATHLEEN CHRISTENSEN A MOTHER AND PROFESSOR AT A CITY UNIVERSITY OF NEW YORK GRADUATE SCHOOL NO ONE TAKES CARE OF YOUR CHILDREN OR HOUSE THE WAY YOU DO SAYS SUSAN DEDOESM AN EAST LANSING MICH MOTHER AND SHOPKEEPER WHO GOES CRAZY WHEN THE PASTRY KNIVES ARE IN THE WRONG DRAWER DESPITE THE CONFLICTS MOTHER AND CAREGIVER ARE LOST WITHOUT EACH OTHER TODAY OZZIEATWORK HARRIETATHOME FITS ONLY ABOUT 13 OF AMERICAN FAMILIES THE US DEPARTMENT OF LABOR PREDICTS THAT BY 1995 80 OF WOMEN AGED 22 TO 44 WILL WORK OUTSIDE THE HOME MANY WILL BE MOTHERS IN SEARCH OF INHOME CHILD CARE AND OTHERS OFTEN MOTHERS OR GRANDMOTHERS WITHOUT COLLEGE DEGREES BUT IN NEED OF WORK WILL BE RESPONDING NANNY SCHOOLS ARE FLOURISHING FROM THE HILLS OF KENTUCKY TO CALIFORNIA BEACHES AU PAIRS ARE ARRIVING EN MASSE FROM EUROPE AND FREE ADVERTISING SUPPLEMENTS ARE FILLED WITH GRANDMOTHERS LOOKING TO CARE FOR CHILDREN JEANETTE BALDWIN WAS DIRECTOR OF A MONTESSORI PROGRAM IN EAST LANSING AND KNEW THE DEDOESM FAMILY FOR 10 MONTHS BEFORE SHE WAS HIRED AS THEIR CAREGIVER I THINK WE HAVE A UNIQUE RELATIONSHIP SAYS MS BALDWIN ADDS MS DEDOESM I WOULDN'T HAVE IT ANY OTHER WAY TO ME SHE'S LIKE AN AUNT STILL THERE ARE MOMENTS OF SUBTLE CONFLICT MS BALDWIN RECALLS MS DEDOESM'S SAYING TO HER YOU'RE SO LUCKY YOU GET TO BE HOME WITH THE BABY ALL DAY OR ASKING DO YOU THINK SHE'S MORE ATTACHED TO YOU THAN ME MS DEDOESM DOESN'T RECALL FEELING JEALOUS AND SAYS SHE FEELS CONFIDENT ABOUT HER CHILDREN'S LOVE BUT THE QUESTIONS HAVE MADE THE CAREGIVER MORE SENSITIVE TO THE MOTHER'S FEARS WHEN THE CHILDREN SLIP AND CALL THE NANNY MOMMY MS BALDWIN JOKES WITH THEM NOW DO I LOOK LIKE YOUR MOMMY NOT ALL NANNIES ARE THAT PERCEPTIVE THOUGH AND SOME FALL INTO THE TRAP OF TRYING TO BECOME MOMMY SUBSTITUTES SAYS GLENDA WILLM A ST LOUIS CAREGIVER AND PRESIDENT OF THE NATIONAL ASSOCIATION OF NANNIES A MOTHER SENSES THOSE KINDS OF FEELINGS THERE'S A VERY FINE LINE BETWEEN LOVING A CHILD AND CARING ABOUT A CHILD AND STEPPING OVER THE LINE AND INVADING A PARENT'S TERRITORY CAREER MOTHERS EXPECTED TO BE EFFICIENT AND IN CONTROL MAY ALSO FEEL INADEQUATE WHEN THEY SEE THE NANNY DOING A BETTER JOB PLAYING WITH AND DISCIPLINING THEIR OWN FLESH AND BLOOD THEY THEMSELVES ARE OFTEN TOO WOUND UP FROM A HECTIC DAY DOWNTOWN TO SHIFT INTO FIRST GEAR AND TANGLE WITH PLAYDOH AT TIMES I WISH I COULD BE A MORE NURTURING PATIENT TYPE WHO COULD SPEND FOUR HOURS ON THE FLOOR WITH THE BABY SAYS MS CAMPBELL THE CHICAGO MOTHER BUT MY ATTENTION SPAN IS TOO SHORT I HAVE DIFFERENT STRENGTHS MS CAMPBELL HAS NEVER HAD A PROBLEM FINDING A NANNY WHO IS WARM AND LOVING IT'S ANOTHER MATTER THOUGH FINDING ONE WHO IS ORGANIZED EDUCATED AND MATURE IN OTHER WORDS LIKE HERSELF SHE HAS A FIVEPAGE QUESTIONNAIRE WHEN INTERVIEWING NANNIES ASKING ABOUT THEIR LOVE LIFE AND RELIGIOUS BACKGROUND I PROBABLY ASK QUESTIONS THAT WOULD BE ILLEGAL IN OTHER SITUATIONS SAYS MS CAMPBELL BUT IT'S IMPORTANT THAT MY CHILDREN NOT BE PROSELYTIZED TO NOR DOES SHE WANT A CAREGIVER WITH POOR GRAMMAR IF I HAD TO CHOOSE BETWEEN THAT AND DAY CARE I'D CHOOSE DAY CARE SHE SAYS IT'S A DISCRIMINATION I PERFORM THAT IS CLEARLY CLASSRELATED HER LAST THREE NANNIES HAVE BEEN COLLEGE GRADUATES AND NONE SHE BELIEVES CAN OUTSMART HER SEVENYEAROLD DAUGHTER ONE CAREGIVER AN ARTIST WHO WAS WONDERFULLY CREATIVE COULDN'T PROPERLY LOAD A DISHWASHER BREAKING DISHES AND RANDOMLY TOSSING IN SPOONS THAT GOT STUCK IN THE BLADES WHEN INVITED TO A FAMILY OUTING THE SAME CAREGIVER POUTED BECAUSE SHE HAD TO TAKE CARE OF THE CHILDREN WE SAID WE LOVE YOU BUT YOU'RE NOT PART OF THE FAMILY' WE WANTED HER TO TAKE CARE OF THE KIDS SAYS MS CAMPBELL SHE DIDN'T UNDERSTAND SHE WAS ACTING OUT OF PLACE CAREGIVERS OFTEN FEEL THE MOTHER IS THE ONE OUT OF PLACE HAVING BEEN RAISED IN NUCLEAR FAMILIES THEY ARE SOMETIMES BEWILDERED BY WHAT THEY CONSIDER SELFABSORBED WOMEN WHO ARE WRAPPED UP IN THEIR CAREERS AND SEEM INDIFFERENT TO THEIR CHILDREN'S NEEDS I KNOW THIS IS THE '90S AND MAYBE I'M WRONG BUT NO CHILD ASKS TO BE BROUGHT HERE YOU CHOOSE THEM AND THEY SHOULD TAKE PRIORITY SAYS ONE NANNY WHO DIDN'T WANT TO BE NAMED FOR FEAR OF ALIENATING HER EMPLOYER MRS VINCENT OF PITTSBURGH WORKED FIVE YEARS AT ONE HOME WHERE THE FATHER BECAME TERMINALLY ILL WITH CANCER AND AFTER A YEARLONG BATTLE DIED AT HOME THE MOTHER WHO WAS A DOCTOR WITHDREW INTO A PRIVATE COCOON OF WORK AND HER OWN SOCIAL LIFE AND LEFT THE TWO CHILDREN'S CARE TO MRS VINCENT YOU WOULD THINK SHE WOULD GRAB ONTO HER KIDS AT A TIME LIKE THAT BUT I WAS PRACTICALLY THEIR MOTHER SAYS MRS VINCENT ONE TIME SHE SAYS THE MOTHER YELLED AT HER WHEN MRS VINCENT GAVE HER ADVICE YOU'RE NOT THEIR MOTHER' SHE SAID I TRIED TO SAY I'M THERE FOR THEM BECAUSE YOU'RE NOT MRS VINCENT STAYED FOR ABOUT A YEAR AFTER THE FATHER'S DEATH FROM THERE SHE WENT TO A FAMILY WHERE THE CHILD OF APPARENT ANIMALRIGHTS ADVOCATES WASN'T ALLOWED TO EAT HOT DOGS OR ATTEND A CIRCUS THE MOTHER INSISTED MRS VINCENT GO TO SCHOOL AT NOON TO MAKE SURE THE GIRL DIDN'T TRADE HER LUNCH AT ANOTHER HOME THE MOTHER WOULD CALL MRS VINCENT AT 4 AM SAYING THE BABY WAS CRYING AND TO PLEASE COME OVER NOW BECAUSE THE MOTHER NEEDED HER SLEEP MRS VINCENT NO LONGER DOES CHILD CARE AND INSTEAD CLEANS HOUSES I CAN DEAL WITH THE KIDS SHE SAYS IT'S THE MOTHERS SUCH CLASHES ARE INEVITABLE GIVEN THE FREQUENTLY DISPARATE CULTURES AND BACKGROUNDS OF NANNIES AND CAREER MOTHERS VICTORIA BOND A DALLAS SOFTWARE CONSULTANT SAYS HER YOUNG HISPANIC NANNY WAS SO SENSITIVE ABOUT BEING PERCEIVED AS A MAID THAT SHE RAN TO HER ROOM AND BURST INTO TEARS WHEN I CAME HOME TO A DIRTY KITCHEN AND SAID I'D APPRECIATE IT IF SHE PUT THE DISHES AWAY SHE SAYS SO I BECAME THE MAID WAITING ON HER EVEN PLAY DATES A SIMPLE TIME AND PLACE WHEN A GROUP OF CHILDREN CAN GET TOGETHER ARE A SOURCE OF SOCIAL FRICTION THE WEST SIDE MONTESSORI SCHOOL IN MANHATTAN DEDICATES ONE OF FIVE CAREGIVER SESSIONS TO WHO SHOULD SCHEDULE PLAY DATES NANNIES OFTEN FEEL AWKWARD SPENDING THREE HOURS WITH THE MOTHER'S STAYATHOME WELLTODO FRIENDS WHO ASK TOO MANY PERSONAL QUESTIONS OR ARE PREOCCUPIED WITH TALKING ABOUT APARTMENT RENOVATIONS SAYS SHEILA BASCETTA A SOCIAL WORKER WHO WORKS WITH THE SCHOOL A MOTHER ON THE OTHER HAND DOESN'T WANT TO LIMIT HER CHILD'S SOCIAL CIRCLE TO THAT OF HER CAREGIVER'S FRIENDS MOTHERS ARE UNDERSTANDABLY SELECTIVE WHEN IT COMES TO THEIR CHILDREN SOME FOR EXAMPLE SAY CEREAL IS FINE IF IT'S NOT THE NANNY'S FAVORITE SUGARLOADED FLAKES TV IS ALLOWED IF IT'S PUBLIC TELEVISION FRAN ARMAN A CLEVELAND MOTHER DISCOVERED HER CAREGIVER WAS AN MTV FAN AFTER WATCHING THE DANCE MOVES OF HER 14MONTHOLD IT BOTHERED ME THAT MY DAUGHTER WAS WATCHING SCANTILY CLAD BODIES UNDULATING ALL OVER THE PLACE SAYS MS ARMAN WHO ASKED THE CAREGIVER TO ABSTAIN FROM MTV IN THE HOUSE THAT NANNY LATER LEFT A NOTE IN THE BABY'S UNDERWEAR DRAWER SAYING SHE WASN'T COMING BACK TO WORK THE NANNY WAS ANGRY THAT MS ARMAN TOOK THE FRIDAY OFF AFTER THANKSGIVING TO SHOP AND SHE STILL HAD TO CARE FOR THE CHILDREN AND THAT THE ARMANS COULDN'T COME HOME EARLY TWO NIGHTS A WEEK SO SHE COULD TAKE NIGHT CLASSES MS ARMAN SCRAMBLED FOR RELATIVES TO TAKE CARE OF HER CHILD UNTIL SHE COULD FIND A NEW CAREGIVER I FELT LIKE SHE WAS TAKING ADVANTAGE OF US MS ARMAN SAYS SHE KNEW WHAT THE JOB ENTAILED WHEN SHE TOOK IT JOY SHELTON CHAIRWOMAN OF THE AMERICAN COUNCIL OF NANNY SCHOOLS SAYS NANNIES HAVE TO UNDERSTAND THAT ABOVE ALL THEY ARE EMPLOYEES AND THAT PARENTS HAVE EVERY RIGHT TO EXPECT THEM TO ABIDE BY THEIR STANDARDS ONE LIVEIN NANNY SHE SAYS OBJECTED TO MAKING HER BED AND CLEANING HER BATHROOM I SAID IF YOU LIVE IN THEIR HOUSE YOU HAVE TO LIVE BY THEIR RULES' SAYS MS SHELTON WHO ADVISES NANNIES TO BE CONSIDERATE AND NOT DRINK THE LAST OF THE DIET COKE ON THE OTHER HAND CAREGIVERS SAY THERE ARE SOME CAREER MOTHERS WHO ARE SO USED TO STRUCTURED WORLDS THAT THEY IMPOSE UNREALISTIC EXPECTATIONS ON EVERYONE ELSE ONE MOTHER INSISTED EACH GARMENT BE HUNG FACING THE SAME DIRECTION WITH THE TOP BUTTON BUTTONED THE CAREGIVER TRIED TO DELICATELY TELL THE MOTHER THAT IT WOULD TAKE A WHILE FOR A CHILD TO LEARN THAT PROCESS ESSENTIALLY TO GET HER OFF THE NANNY'S AND CHILD'S BACKS IT'S HARD FOR THEM TO LET YOU HAVE CONTROL OVER THE THINGS YOU NEED SAYS KELLY CAMPBELL A CAREGIVER IN DALLAS AND PRESIDENT OF THE INTERNATIONAL NANNY ASSOCIATION WHICH HAS SUPPORT GROUPS AROUND THE COUNTRY SHE AND OTHER NANNIES FIND THEMSELVES RELUCTANTLY SWALLOWING PARENTS' DECISIONS WE WORK FOR PEOPLE WHO WANT THEIR KIDS TO BE AT THE TOP OF HARVARD LAW SCHOOL AND THEY SCHEDULE THE KIDS SO MUCH THEY RUN YOU RAGGED SAYS MS CAMPBELL THEY WANT WHAT'S BEST AND FOR THE CHILD TO BE AS PERFECT AS CAN BE BUT THE CAREGIVER IS THE CHILD'S ADVOCATE AND WE FEEL THEIR PRESSURE UNFORTUNATELY CAREGIVERS SAY THOSE SAME DEMANDING MOTHERS FREQUENTLY DON'T IMPOSE TOUGH STANDARDS WHEN IT COMES TO DISCIPLINE NOTHING THEY SAY IS MORE FRUSTRATING THAN DEVOTING A DAY TO TEACHING A TODDLER NOT TO CRAWL ON THE TABLE ONLY TO HAVE MOM COME HOME AND LIFT THE CHILD ONTO THE TABLE FOR A HUG OR FOR MOM TO SAY YES TO MORE VIDEO GAMES WHEN THE NANNY SAID NO ALL PARENTS WANT TO COME HOME AND HAVE THEIR KIDS BE HAPPY IF I WERE IN THAT POSITION IT WOULD BE HARD TO SAY NO SAYS MARY STROLLE A CAREGIVER IN EAST LANSING HER BIGGEST COMPLAINT IS MAKING DINNER ONLY TO HAVE A NINEYEAROLD DECIDE SHE WOULD RATHER HAVE A BOWL OF CEREAL WITH MOM'S BLESSING IT MAKES ME WILD SAYS MS STROLLE IT'S TRUE ADMITS MS STROLLE'S EMPLOYER BETSY STOVER WHO IS AN ACTIVE VOLUNTEER BUT IS HOME MUCH OF THE TIME MRS STOVER SAYS HER FOUR CHILDREN RUN TO HER WHEN MS STROLLE SAYS THEY CAN'T DO SOMETHING I'M AN ABSOLUTE PUSHOVER I JUST WANT TO BE LOVED SO MUCH I NEVER WANT THEM TO SAY MOM THAT OLD WITCH' I'D RATHER THEY SAY MEAN MARY' SHE SAYS MRS STOVER OFTEN ENDS UP MEEKLY APOLOGIZING TO MS STROLLE ABOUT RUINING MEAL PLANS IN SPITE OF THEIR SOMETIMES CONFRONTATIONAL SOMETIMES COMPLEMENTARY RELATIONSHIP MOTHER AND NANNY OFTEN BECOME ENSCONCED IN EACH OTHER'S PERSONAL LIVES MOTHERS END UP COUNSELING CAREGIVERS ON MARITAL AND FINANCIAL PROBLEMS CAREGIVERS FIND THEMSELVES IN THE MIDDLE OF TESTY DIVORCE AND CUSTODY PROCEEDINGS OR DEALING WITH STEPCHILDREN WHO WOULD RATHER LIVE WITH ANOTHER PARENT IN EXTREME CASES CAREGIVERS ARE EXPECTED TO HOLD THE FAMILY TOGETHER WHEN THE STOVER FAMILY'S INFANT DAUGHTER BECAME SERIOUSLY ILL MS STROLLE EVOLVED FROM CAREGIVER INTO MOTHER FATHER SCHOOL VOLUNTEER AND THROWER OF ALL BIRTHDAY PARTIES SHE WOKE THE CHILDREN IN THE MORNING AND TUCKED THEM IN AT NIGHT AND CONSOLED THEM WHEN THE BABY DIED THEN SHE HAD TO STEP BACK GRACEFULLY WHEN MRS STOVER WAS FINALLY ABLE TO TAKE CHARGE OF THE FAMILY AGAIN MARY HAD STEPPED IN LIKE A PROFESSIONAL SOLID AS A ROCK TO RUN THE HOUSEHOLD AND BECOME THE MOM BUT THEN I SAID WAIT A MINUTE I NEED TO GET BACK IN CONTROL OF THIS AND BACK INTO MY KIDS' LIVES' SAYS MRS STOVER MS STROLLE MOVED OUT OF THE HOUSE BUT REMAINS A FULLTIME CAREGIVER IT IS NOT BOTH WOMEN SAY AN EASY RELATIONSHIP I KNOW THERE HAVE BEEN MOMENTS DURING THE LAST SIX YEARS WHEN EACH OF US WISHED WE WERE OTHER PLACES SAYS MRS STOVER WHAT BOTH SIDES OFTEN NEED IS THE EQUIVALENT OF A MARRIAGE COUNSELOR MS BASCETTA THE SOCIAL WORKER TRIES TO BRING MOTHERS AND CAREGIVERS TOGETHER TO AIR GRIPES AND THE REFRAINS HAVE A FAMILIAR MARRIAGECOUNSELING RING NO ONE APPRECIATES WHAT I DO THERE IS NO COMMUNICATION CAREGIVERS OFTEN DON'T COMPLAIN ABOUT HOUSEKEEPING CHORES OR DISCIPLINE STYLES FOR FEAR OF LOSING THEIR JOBS OR BECAUSE THEY ARE INTIMIDATED BY THEIR BOSSES' HIGHPROFILE LIVES MOTHERS DON'T COMPLAIN FOR FEAR OF ALIENATING OR LOSING NANNIES NOT JUST BECAUSE OF THE EXPENSE OF ANOTHER AGENCY SEARCH BUT BECAUSE THEY DON'T WANT TO UPSET THEIR CHILDREN I CONSTANTLY WORRY ABOUT HOW TO SAY SOMETHING FOR FEAR OF OFFENDING SAYS MS BOND THE DALLAS SOFTWARE CONSULTANT HER OFFICE SETTING SHE SAYS IS LESS FRETFUL IF SHE NEEDS A LETTER RETYPED SHE ASKS HER SECRETARY WHO SAYS FINE BUT AT HOME IF I SAY I REALLY PREFER TO HAVE MY DAUGHTER'S TSHIRTS FOLDED RIGHTSIDE OUT INSTEAD OF INSIDEOUT' IT BECOMES A SENSITIVITY ISSUE SEE RELATED LETTERS LETTERS TO THE EDITOR NANNY MOM AND CHILDREN'S LOVE WSJ JUNE 21 1993 9305210053 YY93 MM06 9306180182 930618 HANSON PLC DROPS PROPOSALS FOLLOWING HOLDERS' OBJECTIONS LONDON HANSON PLC THE ANGLOAMERICAN CONGLOMERATE WHOSE INTERESTS STRETCH FROM COAL TO CHEMICALS HAS BECOME THE LATEST COMPANY TO BOW TO INCREASINGLY FORCEFUL MUSCLEFLEXING BY INSTITUTIONAL SHAREHOLDERS IN A SURPRISE MOVE HANSON SAID IT WAS WITHDRAWING CONTROVERSIAL PROPOSALS DUE TO HAVE BEEN VOTED ON BY SHAREHOLDERS AT A SPECIAL MEETING NEXT FRIDAY THE PROPOSALS WHICH WOULD HAVE RESTRICTED INDIVIDUAL SHAREHOLDERS' ABILITY TO NOMINATE DIRECTORS OR TO PROPOSE AMENDMENTS TO RESOLUTIONS HAD BEEN PRESENTED BY THE COMPANY AS DESIGNED TO ENSURE MORE ORDERLY SHAREHOLDER MEETINGS BUT THEY SPARKED OPPOSITION FROM INSTITUTIONAL INVESTORS ON BOTH SIDES OF THE ATLANTIC ON THE GROUND THAT THEY WERE ANTIDEMOCRATIC IN A CAMPAIGN UNPRECEDENTED FOR ITS INTERNATIONAL CHARACTER INSTITUTIONS HOLDING MORE THAN 230 MILLION SHARES OR AROUND 5 OF HANSON'S CAPITAL ORGANIZED AN EFFORT TO FIGHT THEM IN A STATEMENT HANSON CHAIRMAN LORD HANSON MADE CLEAR THAT THE COMPANY HAD BEEN TAKEN ABACK BY THE EXTENT OF THE OPPOSITION AN EARLIER LETTER TO SHAREHOLDERS OUTLINING THE PROPOSALS HAD APPARENTLY GIVEN SOME SHAREHOLDERS THE IMPRESSION THAT WE WERE SEEKING TO TAKE DRACONIAN POWERS OVER SHAREHOLDERS AND TO RESTRICT THEIR RIGHTS HE SAID THIS I REGRET HE DECLARED AS NEEDLESS TO SAY THIS WAS NOT MY INTENTION THE COMPANY HAD NO INTEREST IN PURSUING CHANGES WHICH ARE NOT ACCEPTABLE TO SHAREHOLDERS HE ADDED AS A RESULT HE SAID IT HAD DECIDED NOT TO PRESS AHEAD WITH ITS PLAN IN THE US THE UNITED MINE WORKERS OF AMERICA COORDINATED OBJECTIONS FROM SHAREHOLDERS INCLUDING THE STATE OF WISCONSIN INVESTMENT BOARD ONE OF HANSON'S BIGGEST SHAREHOLDERS WITH A 13 STAKE THE FLORIDA STATE BOARD OF INVESTMENT AND THE HOUSTON FIREFIGHTERS RELIEF AND RETIREMENT FUND SMALL HOLDERS UNDER THE UMBRELLA OF THE UNITED SHAREHOLDERS ASSOCIATION ALSO VOICED THEIR DISAGREEMENT 9306180181 930618 WHO'S NEWS ARVIN INDUSTRIES INC ARVIN INDUSTRIES INC COLUMBUS IND BYRON O POND 56YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER OF THIS SUPPLIER OF AUTO PARTS AND RELATED PRODUCTS AND SERVICES SUCCEEDING JAMES K BAKER 61 WHO CONTINUES AS CHAIRMAN 9306180180 930618 TAXPAYER SUITS ARE FORCING AGENCIES TO RECONSIDER THE WAY THEY SELL DEBT BY LYNN K ADLER SPECIAL TO THE WALL STREET JOURNAL NEW YORK A WEST VIRGINIA AGENCY'S 338 MILLION BOND OFFERING WAS HALTED THIS WEEK A MOVE ANALYSTS SAY IS PART OF A NATIONAL TREND TOWARD MORE TAXPAYERS CHALLENGING HOW MUNICIPAL BONDS ARE SOLD THE STATE SCHOOL BUILDING AUTHORITY'S REVENUE AND REFUNDING BOND OFFERING WAS DELAYED INDEFINITELY AFTER A TAXPAYER LAWSUIT FILED MONDAY CLAIMED THE AUTHORITY'S SECURITIES ARE GENERAL OBLIGATIONS OF THE STATE AND THUS CONSTITUTIONALLY SUBJECT TO VOTER APPROVAL MEANWHILE WEST VIRGINIA ATTORNEY GENERAL DARRELL V MCGRAW JR IS QUESTIONING THE CONSTITUTIONALITY OF AWARDING CONSULTING CONTRACTS THROUGH NEGOTIATED RATHER THAN COMPETITIVE BIDDING ANALYSTS SAY RESISTANCE TO RISING TAXES PROBABLY WILL SPUR MORE CHALLENGES TO STATE AND LOCAL FINANCINGS PARTICULARLY NONVOTERAPPROVED DEBT AND HEIGHTENED SCRUTINY WILL MOST LIKELY PROMPT STATES AND LOCALITIES TO RECONSIDER THE WAY THEY SELL DEBT THEY ADD CONCERNS AROSE IN THE WAKE OF SECURITIES AND EXCHANGE COMMISSION AND CRIMINAL PROBES OF A 29 BILLION NEGOTIATED SALE OF NEW JERSEY TURNPIKE AUTHORITY BONDS THE UNDERLYING QUESTION IS WHETHER SECURITIES FIRMS WIN BUSINESS UNFAIRLY THROUGH POLITICAL CONTRIBUTIONS AND FAVORS WE'RE CERTAINLY IN THE SHORT RUN GOING TO SEE MORE OF THIS DEBT SALE RECONSIDERATIONS UNTIL THIS THING SHAKES ITS WAY OUT SAYS HYMAN GROSSMAN MANAGING DIRECTOR AT STANDARD & POOR'S CORP TAXPAYER LAWSUITS WILL PERSIST ESPECIALLY IN PLACES WHERE DEBT HAS EXPLODED PARTICULARLY WHEN ISSUERS SELL NONVOTERAPPROVED LEASEBACKED OBLIGATIONS IF SUCH FINANCING STARTS TO BECOME FREQUENT AND EXPENSIVE IT WILL CATCH TAXPAYER ATTENTION HE ADDS ISSUERS NEED TO BE CAREFUL BOND SALE DELAYS COULD BE COSTLY FOR THE WEST VIRGINIA SCHOOL BUILDING AUTHORITY ABOUT HALF THE OFFERING INITIALLY PLANNED FOR PRICING TUESDAY WOULD HAVE BEEN A REFUNDING ISSUE TO REPLACE HIGHERYIELDING DEBT SAYS EXECUTIVE DIRECTOR CLACY WILLIAMS THE TAXPAYER LAWSUIT FILED IN STATE SUPREME COURT HAS LANDED IN KANAWHA COUNTY CIRCUIT COURT WHICH ON TUESDAY WILL BEGIN HEARINGS ON THE PRELIMINARY INJUNCTION SAYS FRANCES HUGHES MANAGING DEPUTY ATTORNEY GENERAL OTHER ISSUERS ALSO FACE HURDLES AND ARE LIKELY TO FIND THEMSELVES IN SIMILAR SITUATIONS ANALYSTS AND ISSUERS SAY JUST LAST MONTH A TAXPAYER'S SUIT PROMPTED A STATE SUPREME COURT JUDGE TO TEMPORARILY BAR NEW YORK FROM PROCEEDING WITH A MORE THAN 6 BILLION TRANSPORTATION FINANCING PLAN IT WAS THE COURT'S FIRST CONCESSION AFTER A LONG STRING OF LAWSUITS FILED BY THE TAXPAYER WHO MAINTAINS THAT NEW YORK OFTEN VIOLATES ITS CONSTITUTIONAL MANDATE TO BORROW WITH EXPLICIT VOTER APPROVAL THE RESULT MAY BE THAT STATES AND THEIR AGENCIES COME UP WITH CONTINGENCY FINANCING PLANS ONE REASON IF THE COURTS EVENTUALLY RULE THAT THESE OFFERINGS REQUIRE VOTER APPROVAL ISSUERS FACE THE PROSPECT OF VOTER REJECTION IN THE WAKE OF INVESTIGATIONS INTO A BOND SALE BY THE STATE'S TURNPIKE AUTHORITY NEW JERSEY HAS CHANGED THE WAY IT AND ITS AGENCIES SELL MUNICIPAL DEBT THE NEW JERSEY HIGHWAY AUTHORITY EXPECTS NEXT WEEK TO PUT UP FOR COMPETITIVE BID THE FIRST MAJOR MUNICIPAL DEBT OFFERING SINCE EARLY MAY WHEN GOV JIM FLORIO BANNED STATE AND STATE AGENCYNEGOTIATED OFFERINGS IN WEST VIRGINIA THE ATTORNEY GENERAL FOUND THAT CONSULTANT CONTRACTS BETWEEN THE ISSUER THE SCHOOL BUILDING AUTHORITY THE TRUSTEE THE UNITED NATIONAL BANK AND THE BOND COUNSEL LAW FIRMS OF GOODWIN & GOODWIN AND STEPTOE & JOHNSON WERE NOT BID AND FOR THAT REASON THE CONTRACTS ARE BEING RETURNED WITHOUT A SIGNATURE ACCORDING TO A JUNE 11 LETTER BY MS HUGHES THE MANAGING DEPUTY ATTORNEY GENERAL CONSEQUENTLY THE LETTER SAID THE ATTORNEY GENERAL FOUND NO CONTRACT BETWEEN THE STATE AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP LEAD UNDERWRITER FOR THE PROPOSED NEGOTIATED BOND OFFERING THE ATTORNEY GENERAL ALSO FOUND NUMEROUS FLAWS IN THE LEGISLATION THAT PROVIDES APPROPRIATION FOR THE OFFERING THE LETTER SAYS THE ISSUE IS ONE FOR A COURT OF COMPETENT JURISDICTION AND WARNS THE UNDERWRITERS THAT THE PROPOSED ISSUE MAY HAVE CONSTITUTIONAL IMPERFECTIONS MR WILLIAMS OF THE WEST VIRGINIA AUTHORITY CONTENDS THE PLANNED OFFERING IS IN FACT WITHIN THE STATUTES OF WEST VIRGINIA LAW ACCORDING TO THE ISSUER AND BOND COUNSEL WE ARE SIMPLY GOING TO DEFEND THE AUTHORITY'S ACTION BASED UPON PREVIOUS SIMILAR CASES AGAINST OTHER ISSUERS 9306180179 930618 WHO'S NEWS SHAWMUT NATIONAL CORP SHAWMUT NATIONAL CORP HARTFORD CONN ROBERT J SHURMAN A FORMER MUTUAL FUND MANAGER WITH US TRUST CORP WAS NAMED TO THE NEW BOSTONBASED POSITION OF SENIOR VICE PRESIDENT AND MANAGER OF MUTUAL FUNDS 9306180178 930618 LIBBEYOWENSFORD SAYS EXOFFICIALS SET UP COMPANY TO DEFRAUD GLASSMAKER BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL LIBBEYOWENSFORD CO A UNIT OF BRITAIN'S PILKINGTON PLC TOLD AN OHIO COURT THAT IT RISKS BEING IRREPARABLY HARMED BECAUSE VITAL BUSINESS AND FINANCIAL RECORDS ARE IN THE CONTROL OF A COMPANY THAT LIBBEY NOW CHARGES WAS SET UP TO DEFRAUD THE GLASSMAKER THE ALLEGED FRAUD INVOLVES A DECISION TO SUBCONTRACT MANAGEMENT OF VIRTUALLY ALL OF THE COMPANY'S MOST SENSITIVE COMPUTERIZED DATA LIBBEY STATED IN PAPERS FILED THIS WEEK IN FRANKLIN COUNTY COMMON PLEAS COURT IN COLUMBUS OHIO WHAT'S MORE THE COMPANY CHARGED THAT ITS FORMER CHIEF EXECUTIVE AND TWO EXECUTIVE VICE PRESIDENTS WHO RECENTLY WERE FIRED WITHOUT EXPLANATION WERE INVOLVED IN A SCHEME TO TRADE LUCRATIVE DATA PROCESSING CONTRACTS FOR KICKBACKS LIBBEY'S STATEMENTS ARE THE MOST DETAILED YET INVOLVING THE SPREADING SCANDAL THAT LED TO THE OUSTER OF THE THREE SENIOR OFFICERS ATTORNEYS FOR LIBBEY SAID THE GLASSMAKER HAS TURNED OVER WHAT CAN FAIRLY BE DESCRIBED AS THE CENTRAL NERVOUS SYSTEM' OF ITS BUSINESS ITS COMPUTER SYSTEM INFORMATION SYSTEMS AND ALL OF THE DATA CONTAINED THEREIN TO THOSE WHO HAVE DEFRAUDED IT LIBBEY CHARGES THAT JOHN R PURSER FORMERLY DIRECTOR OF THE GLASSMAKER'S MANAGEMENT INFORMATION SYSTEMS CONSPIRED WITH TOP LIBBEY OFFICERS TO CREATE A CORPORATION COMPUTER TECHNOLOGY MANAGEMENT INC THAT WOULD REPLACE THE COMPANY'S INHOUSE DATA PROCESSING AND INFORMATION MANAGEMENT AS PART OF THE CONSPIRACY MORE THAN 3 MILLION IN BOGUS CONSULTING FEES WAS PAID TO CORPORATIONS CONTROLLED BY THE OFFICERS AND CLARENCE H MARTIN A OHIO UNIVERSITY BUSINESS PROFESSOR LIBBEY CHARGED IN THE COURT DOCUMENTS BUT COMPUTER TECHNOLOGY MANAGEMENT STILL CONTROLS ACCESS TO VIRTUALLY ALL LIBBEY'S KEY DATA INCLUDING CUSTOMER ORDER PROCESSING ACCOUNTS PAYABLE AND RECEIVABLE SCHEDULING SHIPPING INVENTORY AND PAYROLL LIBBEY SAID IN A MOTION FOR A TEMPORARY RESTRAINING ORDER THE MOTION SEEKS TO FORCE COMPUTER TECHNOLOGY MANAGEMENT TO PROTECT LIBBEY'S RECORDS AND TO GIVE LIBBEY ACCESS TO ITS OWN MAINFRAME AND ITS COMPUTER NETWORKS THIS INFORMATION IS PROPRIETARY AND ITS DESTRUCTION OR ANY TAMPERING WITH IT COULD IRREPARABLY DESTROY THE ACCOUNTING SYSTEM AND BUSINESS OF LIBBEY THE GLASSMAKER SAID IN THE COURT DOCUMENTS THE REQUEST FOR A TEMPORARY RESTRAINING ORDER FILED MONDAY IS STILL PENDING AN ATTORNEY FOR LIBBEY DAVID W ALEXANDER DECLINED TO COMMENT THE THREE FORMER LIBBEY EXECUTIVES ACCUSED OF INVOLVEMENT IN THE FRAUD ARE EXCHIEF EXECUTIVE RONALD W SKEDDLE AND EDWARD BRYANT AND DARRYL COSTIN BOTH FORMER EXECUTIVE VICE PRESIDENTS THEIR ATTORNEY WILLIAM CONNELLY SAID YESTERDAY THAT THE CHARGES ARE ONLY ALLEGATIONS RICHARD PANZA AN ATTORNEY FOR DR MARTIN MR PURSER AND WHAT ARE NOW FIVE SEPARATE OHIO FIRMS NAMED IN THE LAWSUIT CALLED THE CHARGES LEVELED BY LIBBEY INCORRECT MR PANZA SAID THE AGREEMENT LIBBEY ENTERED INTO WITH MR PURSER'S COMPUTER FIRM SAVED THE TOLEDO OHIO GLASSMAKER 11 MILLION HE ALSO SAID THAT LIBBEY MADE A 13 MILLION PROFIT FROM A TRANSACTION INVOLVING OIL AND GAS WELLS LIBBEY HAS CHARGED DR MARTIN AND THE THREE FORMER OFFICERS WITH ACCEPTING KICKBACKS IN CONNECTION WITH THE OIL AND GAS DEALS AND A SEPARATE LEASE AGREEMENT INVOLVING FACTORY ROBOTS THE THREE FORMER OFFICERS WHO WERE FIRED MAY 11 HAVE NOT BEEN NAMED AS CONSPIRATORS IN COURT PAPERS BY LIBBEY HOWEVER LIBBEY'S ATTORNEYS HAVE SAID IN COURT THAT THEY ARE THE ALLEGED DISLOYAL LOF OFFICERS REFERRED TO IN COURT PAPERS ACCORDING TO THE ASSOCIATED PRESS IN AN AMENDED COMPLAINT FILED TO INCLUDE THE CHARGES RELATED TO THE DATA PROCESSING OPERATIONS LIBBEY SAYS IT ISN'T NAMING THE THREE DISLOYAL LOF OFFICERS BECAUSE PURSUANT TO THEIR EMPLOYMENT CONTRACTS WITH LIBBEY CERTAIN CLAIMS AGAINST THEM ARE SUBJECT TO BINDING ARBITRATION MR CONNELLY THE ATTORNEY FOR THE THREE EXECUTIVES WOULD SAY LITTLE MORE THAN THAT HE IS REPRESENTING THEM IN A DEMAND FOR ARBITRATION FILED BY LIBBEY THE AMENDED COMPLAINT SEEKS 6 MILLION IN DAMAGES FROM COMPUTER TECHNOLOGY MANAGEMENT AND ITS PRESIDENT MR PURSER AS WELL AS 4 MILLION IN DAMAGES FROM OHIO UNIVERSITY'S DR MARTIN AND TWO COMPANIES HEADED BY HIM THE DANGER TO LIBBEY'S BUSINESS COULD BE MITIGATED BY WHAT LIBBEY PORTRAYS AS MR PURSER'S WILLINGNESS TO COOPERATE ACCORDING TO AN AFFIDAVIT FILED BY ALAN J MILLER VICE PRESIDENT AND GENERAL COUNSEL AT LIBBEY MR PURSER DISCLOSED THE ALLEGED SCHEME TO LIBBEY ON SUNDAY MAY 30 MR MILLER SAID MR PURSER TOLD HIM THAT A SENIOR LIBBEY OFFICAL GAVE HIM THE OPTION OF SETTING UP THE FIRM AND PAYING KICKBACKS OR BEING FIRED HOWEVER MR PANZA MR PURSER'S ATTORNEY GAVE A MARKEDLY DIFFERENT ACCOUNT MR PANZA DESCRIBED THE COMPUTER OPERATION AS A MUTUALLY BENEFICIAL OPERATION DESIGNED TO MAKE LIBBEY'S COMPUTER OPERATIONS MORE EFFICIENT 9306180177 930618 WHO'S NEWS HARCOURT GENERAL INC HARCOURT GENERAL INC CHESTNUT HILL MASS JACK M GREENBERG 50 YEARS OLD WAS NAMED A DIRECTOR AT THIS PUBLISHING AND RETAILING COMPANY INCREASING THE BOARD TO 12 MEMBERS MR GREENBERG IS CURRENTLY VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER THE COMPANY ALSO NAMED STEPHEN C RICHARDS 37 TO THE UNFILLED POSITION OF VICE PRESIDENT AND CONTROLLER JACK M GREENBERG A NEW DIRECTOR AT HARCOURT GENERAL INC IS VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF MCDONALD'S CORP IN FRIDAY'S WHO'S NEWS COLUMN IT WAS INCORRECTLY STATED THAT MR GREENBERG HOLDS THOSE POSTS AT HARCOURT HARCOURT'S CHIEF FINANCIAL OFFICER IS JOHN R COOK 9306180176 930618 CANADA'S TRADE SURPLUS WIDENS OTTAWA CANADA'S TRADE SURPLUS WIDENED TO 116 BILLION CANADIAN DOLLARS US9063 MILLION IN APRIL AS A RESULT OF A STRONG RISE IN EXPORTS TO THE US STATISTICS CANADA A GOVERNMENT AGENCY SAID THE SURPLUS IN MARCH TOTALED C812 MILLION EXPORTS ROSE 23 IN APRIL TO C1484 BILLION FROM C1450 BILLION IN MARCH IMPORTS DECLINED 01 TO C1368 BILLION IN APRIL FROM C1369 BILLION CANADIAN EXPORTS TO THE US ROSE 4 IN APRIL FROM MARCH LED BY INCREASED SHIPMENTS OF AUTOMOTIVE PRODUCTS CANADIAN IMPORTS OF US GOODS DECLINED 12 THE US TOOK 812 OF CANADIAN EXPORTS IN APRIL AND THE US SUPPLIED 715 OF CANADA'S APRIL IMPORTS 9306180175 930618 ANHEUSERBUSCH ACQUISITION ST LOUIS ANHEUSERBUSCH COS SAID IT COMPLETED THE PURCHASE OF A 177 STAKE IN GRUPO MODELO SA DE CV A MAJOR MEXICAN BREWER AND MAKER OF CORONA BEER FOR 477 MILLION THE COMPANY SAID THAT AS PART OF THE DEAL ANHEUSER WILL HAVE THREE SEATS ON MODELO'S BOARD AND A MODELO REPRESENTATIVE WILL BE ELECTED TO ANHEUSER'S BOARD THE AGREEMENT GIVES ANHEUSER OPTIONS TO BOOST ITS STAKE TO 35 AND TO ACQUIRE AN ADDITIONAL MINORITY STAKE IN MODELO'S SUBSIDIARIES THE INVESTMENT WHICH IS THE COMPANY'S FIRST IN A MAJOR FOREIGN BREWER IS PART OF A STRATEGY THAT SEEKS GROWTH ABROAD 9306180174 930618 WHO'S NEWS TRANSCO ENERGY CO TRANSCO ENERGY CO HOUSTON NICHOLAS J NEUHAUSEL WAS NAMED SENIOR VICE PRESIDENT OF HUMAN RESOURCES AND ADMINISTRATION AT THIS NATURAL GAS PIPELINE COMPANY MR NEUHAUSEL 47 YEARS OLD WAS RECENTLY VICE PRESIDENT HUMAN RESOURCES AT SUN REFINING & MARKETING CO A UNIT OF SUN CO THOMAS W SPENCER 64 WAS SENIOR VICE PRESIDENT HUMAN RESOURCES AT TRANSCO ENERGY AND WILL REMAIN PRESIDENT AND CHIEF OPERATING OFFICER OF TRANSCO COAL CO 9306180173 930618 CANADIAN STEEL OUTPUT OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 274309 METRIC TONS IN THE WEEK ENDED SATURDAY AN 84 INCREASE FROM 252961 TONS THE PREVIOUS WEEK BUT A 04 DECLINE FROM 275373 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 6426229 TONS A 4 INCREASE FROM 6179759 TONS A YEAR EARLIER 9306180172 930618 ONTARIO PANEL BANS GORDON CAPITAL OFFICER FROM INVESTMENT POST TORONTO THE ONTARIO SECURITIES COMMISSION HAS BANNED A FORMER DIRECTOR AND PARTNER OF GORDON CAPITAL CORP FROM SERVING AS A SECURITIES SALESMAN OR OFFICER OF ANY INVESTMENT DEALER FOR THE REST OF HIS LIFE AND BANNED HIM FROM TRADING IN ANY SECURITIES FOR 10 YEARS THE RULING CAME IN THE WAKE OF A TWOYEAR INVESTIGATION BY THE COMMISSION INTO UNUSUAL BOND TRANSACTIONS BY ERIC RACHAR THE GORDON DIRECTOR MR RACHAR WHO HEADED GORDON'S DERIVATIVE PRODUCTS DEPARTMENT ADMITTED IN A SETTLEMENT AGREEMENT THAT HE ACCEPTED INSUFFICIENT COLLATERAL FROM A CLIENT AS SECURITY FOR A MARGIN ACCOUNT FAILED TO PROPERLY RECORD A VARIETY OF TRANSACTIONS AND ACCEPTED CASH AND LOWINTEREST LOANS FROM THE CLIENT IN THE SETTLEMENT AGREEMENT MR RACHAR ALLEGES THAT OTHER GORDON OFFICIALS INCLUDING PRESIDENT JAMES CONNACHER WERE AWARE OF PARTICIPATED IN OR APPROVED OF THE TRANSACTIONS IN QUESTION MR CONNACHER ALONG WITH GORDON'S COMPLIANCE OFFICER PETER BAILEY AND GORDON ITSELF REMAIN THE FOCUS OF A COMMISSION HEARING WHICH MAY BE HELD THIS FALL MR CONNACHER AND MR BAILEY DID NOT RETURN PHONE CALLS SEEKING COMMENT GORDON SAID EARLIER THAT IT HAS COOPERATED WITH THE COMMISSION IN ITS INVESTIGATIONS AND MOVED PROMPTLY TO CORRECT CAPITAL DEFICIENCIES WHICH RESULTED FROM THE IRREGULAR BOND TRADES WHICH TOOK PLACE BETWEEN 1989 AND 1991 THE COMMISSION HAS ALLEGED GORDON AND THE TWO OFFICIALS KNEW OR SHOULD HAVE KNOWN THAT SOME CUSTOMERS' ACCOUNTS WERE DEFICIENT IN MARGIN AND THAT THE FIRM'S NET FREE CAPITAL POSITION AND REVENUES HAD BEEN OVERSTATED MR RACHAR SAID IN THE SETTLEMENT AGREEMENT THAT IT WAS CLEAR TO HIM THAT THE GORDON CULTURE SACRIFICED REGULATORY COMPLIANCE FOR PROFITS AND THAT HE BELIEVES HIS CONDUCT WAS A BYPRODUCT OF THE GORDON CULTURE MR RACHAR'S CLIENT IN MOST OF THE TRANSACTIONS ERIC LETT A TORONTO MONEY MANAGER AGREED TO A SIXMONTH SUSPENSION AS A DIRECTOR AND OFFICER OF TWO INVESTMENT FIRM IN WHICH HE IS A PARTNER 9306180171 930618 DAIMLERBENZ AFFIRMS REPORT SAYING PROFIT COULD DOUBLE IN 1994 SPECIAL TO THE WALL STREET JOURNAL FRANKFURT DAIMLERBENZ AG WHICH HAS SEEN ITS EARNINGS COLLAPSE THIS YEAR AND LAST EXPECTS A RECOVERY IN 1994 THE COMPANY SAID THE COMPANY'S PRESS DEPARTMENT CONFIRMED A PUBLISHED REPORT QUOTING DAIMLER'S CHIEF FINANCIAL OFFICER GERHARD LIENER WHO SAID NEXT YEAR'S PROFIT COULD BE TWICE AS HIGH AS IN THE CURRENT YEAR THIS WOULD MEAN A 1994 NET PROFIT OF ROUGHLY TWO BILLION MARKS 121 BILLION AFTER THE COMPANY HAS ALREADY ANNOUNCED IT EXPECTS 1993 NET TO SLIDE TO ABOUT ONE BILLION MARKS FROM 1992 EARNINGS OF 145 BILLION MARKS LAST YEAR'S RESULT REPRESENTED A SHARP 25 SLIDE FROM 1991'S RECORD EARNINGS OF 194 BILLION MARKS LAST MONTH DAIMLER SAID ITS PROFIT PLUNGED TO 20 MILLION MARKS IN THE FIRST QUARTER FROM 480 MILLION MARKS A YEAR EARLIER MR LIENER BASED HIS OPTIMISM ON HIGH EXPECTATIONS FOR THE GROUP'S MERCEDESBENZ AG LUXURY CAR SUBSIDIARY WHICH THIS MONTH LAUNCHED ITS NEWLY REDESIGNED AND REENGINEERED CCLASS COMPACT SERIES THE CCLASS IS THE SUCCESSOR TO THE 190SERIES SEDANS MERCEDES IS THE MAIN OPERATING DIVISION OF DAIMLER GERMANY'S LARGEST CORPORATION WHICH ALSO INCLUDES THE AEG AG ELECTRONICS GROUP AS WELL AS THE DEUTSCHE AEROSPACE AG UNIT 9306180170 930618 WHO'S NEWS CEPHALON INC CEPHALON INC WEST CHESTER PA JASON RUBIN 35 YEARS OLD WAS NAMED VICE PRESIDENT OF CORPORATE COMMUNICATIONS A NEWLY CREATED POSITION AT THIS PHARMACEUTICALPRODUCTS CONCERN MR RUBIN HAD BEEN VICE PRESIDENT OF COMMUNICATIONS AT IMMUNEX CORP A SEATTLE BIOTECHNOLOGY COMPANY 9306180168 930618 MITSUBISHI BANK'S FISCAL YEAR NET TOKYO JAPAN'S MITSUBISHI BANK REPORTED THAT ITS CONSOLIDATED NET PROFIT CALCULATED ON US ACCOUNTING STANDARDS WAS OFF 26 LAST FISCAL YEAR PROFIT FELL TO 14607 BILLION YEN 137 BILLION FROM 19763 BILLION YEN DURING MITSUBISHI BANK'S FISCAL YEAR ENDED MARCH 31 THE NUMBER OF SHARES INCREASED DUE TO CONVERSION OF BONDS TO DEPRESS THE EARNINGS PER SHARE FURTHER THAN THE DECLINE IN NET PROFIT FOR THIS FISCAL YEAR THE BANK FORECAST A FURTHER DECLINE IN GROUP PRETAX PROFIT CALCULATED ON US STANDARDS ALTHOUGH NET PROFIT IS SEEN BY THE BANK AS FLAT NET PROFIT FOR LAST FISCAL YEAR FELL 25 TO 5567 BILLION YEN OR 1813 YEN A SHARE FROM 7550 BILLION YEN OR 2542 YEN A SHARE A YEAR EARLIER REVENUE FELL 24 TO 2854 TRILLION YEN FROM 3770 TRILLION YEN 9306180166 930618 FRENCH MINISTER PUSHES FOR JOBS PARIS FRENCH ECONOMICS MINISTER EDMOND ALPHANDERY SAID FRANCE'S SERVICE SECTOR HAS PLENTY OF POTENTIAL FOR THE CREATION OF NEW JOBS WITH THE FRENCH UNEMPLOYMENT RATE RUNNING ABOVE 10 MR ALPHANDERY SPEAKING BEFORE THE NATIONAL COUNCIL ON CONSUMPTION ENCOURAGED DEVELOPMENT IN SERVICESECTOR EMPLOYMENT WITH TWO OUT OF THREE EMPLOYED IN THE SERVICES SECTOR OUR COUNTRY IS PLACED FAR BEHIND THE UNITED STATES WHERE SERVICES OCCUPY THREE OUT OF FOUR JOBS HE SAID 9306180165 930618 GRUMMAN TO CALL DEBENTURES BETHPAGE NY GRUMMAN CORP SAID IT PLANS TO REDEEM ON JULY 7 ALL 50 MILLION OF ITS 9 1/4 SINKING FUND DEBENTURES DUE 2009 THE REDEMPTION PRICE IS 10185 OF THE FACE AMOUNT PLUS ACCRUED INTEREST HOLDERS MAY OPT TO CONVERT THE BONDS INTO SHARES OF COMMON STOCK AT A PRICE OF 3475 EACH GRUMMAN SHARES CLOSED YESTERDAY AT 40375 UP 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE REDEMPTION IS PART OF A CONTINUING PLAN TO REDUCE DEBT AND INTEREST EXPENSE OUR INTEREST COST THIS YEAR WILL BE BELOW 40 MILLION LESS THAN HALF OF WHAT IT WAS IN 1991 THE AEROSPACE AND ELECTRONICS CONCERN SAID 9306180164 930618 WHO'S NEWS ITT CORP ITT CORP NEW YORK JO JOHNSON 45 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND DIRECTOR OF FRANCHISING AT THE BOSTONBASED ITT SHERATON UNIT OF THIS INDUSTRIAL AND FINANCIAL SERVICES CONCERN MS JOHNSON WHOSE POSITION IS NEWLY CREATED HAD BEEN DIRECTOR OF FRANCHISE ADMINISTRATION AT THE UNIT 9306180163 930618 LEISURE & ARTS ON SPORTS MICHAEL TIPS BALANCE AND BEATS THE SUNS BY FREDERICK C KLEIN CHICAGO A FRIEND OF MINE WHO'S A CHICAGO BULLS FAN BELIEVES THAT AFTER EVERY BULLS GAME THE SPORTS PAGES OF THE CHICAGO NEWSPAPERS SHOULD RUN A BOX HEADLINED HERE ARE THE UNBELIEVABLE THINGS MICHAEL JORDAN DID LAST NIGHT THAT WAY HE SAYS HE WOULDN'T HAVE TO READ LONG GAME ACCOUNTS TO FERRET THEM OUT MY RESPONSE WAS THAT HIS IDEA PROBABLY WOULD FOUNDER ON THE PROBLEM OF DEFINITION AFTER WATCHING JORDAN PLAY PROFESSIONAL BASKETBALL FOR NINE SEASONS NOW PEOPLE'S NOTIONS ABOUT WHAT'S BELIEVABLE AND WHAT'S NOT HAVE CHANGED THE OPPONENTS OF HIS HIGHNESS MICHAEL HAVE GONE THROUGH JUST THAT SORT OF TRANSFORMATION AFTER JORDAN SCORED 55 POINTS WEDNESDAY NIGHT IN CHICAGO STADIUM IN LEADING HIS TEAM TO A 111105 VICTORY THAT GAVE IT A COMMANDING THREEGAMESTOONE LEAD IN THE BESTOFSEVEN NBA CHAMPIONSHIP SERIES WITH THE PHOENIX SUNS KEVIN JOHNSON THE SUNS POINT GUARD WAS ASKED IF HE COULD TAKE IN WHAT HAD JUST HAPPENED I CAN'T SAY IT WAS UNBELIEVABLE IT WAS DEFINITELY BELIEVABLE SAID KJ WE'VE ALL SEEN MICHAEL DO THINGS LIKE THAT BEFORE JORDAN DID NOT POP EYES WITH INDIVIDUAL MOVES THAT HERETOFORE HAD BEEN ASSOCIATED ONLY WITH INSTITUTIONS LIKE THE CIRQUE DU SOLEIL HE DID NOT SCORE A BASKET AFTER SHIFTING HANDS WITH THE BASKETBALL IN MIDAIR AS HE DID DURING THE 1991 FINALS AGAINST THE LOS ANGELES LAKERS HE DID NOT APPROACH THE HOOP FACE FORWARD AND DO A 180DEGREE TWIRL BEFORE FLIPPING IN THE SPHEROID OVER HIS HEAD AS HE DID DURING A MIDSEASON CONTEST LAST SEASON HE DID NOT SCORE 69 POINTS AS HE DID AGAINST A GOOD CLEVELAND CAVALIERS TEAM ON A MARCH EVENING IN 1990 OR 63 AS HE DID IN A 1986 PLAYOFF GAME AGAINST A BETTER BOSTON CELTICS CREW THAT WAS TITLEBOUND BUT ALL THINGS CONSIDERED IT'S DOUBTFUL THAT THE GIFTED JORDAN HAS PLAYED A BETTER 46 OF 48 MINUTES THAN HE DID ON WEDNESDAY THERE WERE HIS POINTS OF COURSE ON 21 BASKETS AND 13 FREE THROWS AND THERE WAS THE OCCASION A GAME THAT IF IT HAD BEEN LOST AND IT NEARLY WAS WOULD HAVE BEEN A PROFOUND SETBACK TO THE BULLS' HOPES FOR A THIRD STRAIGHT LEAGUE TITLE THERE ALSO WAS HIS DEFENSIVE PLAY WHICH BEST CAN BE SUMMARIZED BY A LOOK AT THE STATS OF DAN MAJERLE THE PHOENICIAN WHOM HE MOST OFTEN GUARDED MAJERLE IS HIS TEAM'S AND THE LEAGUE'S MOST PROLIFIC THREEPOINT SHOOTER AND HIS SIX TREYS PACED THE SUNS' 129121 WIN HERE SUNDAY NIGHT YET ON WEDNESDAY HE GOT OFF BUT FIVE THREEPOINT SHOTS AND TWO OF THE THREE HE MADE ACCOUNTING FOR SIX OF HIS 14 POINTS CAME DURING A ONEMINUTE 15SECOND SPAN LATE IN THE SECOND QUARTER WHEN PHIL JACKSON THE CHICAGO COACH TRIED TO GIVE HIS STAR SOME REST NEEDLESS TO SAY THAT EXPERIMENT WAS QUICKLY ABORTED AND THERE WAS FINALLY THE LAST THREE OF JORDAN'S 55 TALLIES WHICH WILL LIVE LONG IN HIGHLIGHTFILM HISTORY THEY CAME WITH 13 SECONDS LEFT AND THE BULLS HOLDING A PRECARIOUS 106104 LEAD JORDAN GOT THE BALL NEAR MIDCOURT AND DRIBBLING LEFTHANDED HEADED PAST MAJERLE FOR THE BASKET CHARLES BARKLEY THE BURLY SUNS STAR MOVED TO BAR HIS PATH BUT AS HE AND JORDAN COLLIDED JORDAN NEATLY SWITCHED THE BALL TO HIS RIGHT HAND AND THREW UP A SHOT FROM HIS HIP IT HIT THE BACKBOARD AND SPUN IN AND HE LATER MADE THE FREE THROW THAT THE COLLISION OCCASIONED THE OFFICIAL'S CALL ON THE PLAY WAS A CLOSE ONECHARGING AGAINST JORDAN SEEMED A POSSIBILITY BUT BARKLEY LATER OPINED THAT IT WAS PROPER I DIDN'T GET OVER IN TIME TO DRAW A CHARGE HE CONFESSED THE 6FOOT6 JORDAN'S POINTS CAME ON JUMP SHOTS OF UP TO 20 FEET MOSTLY WHEN HE WAS GUARDED BY THE 6FOOT1 JOHNSON AND ON DRIVES TO THE HOOP MOSTLY WHEN HE WAS GUARDED BY THE TALLER BUT SLOWER MAJERLE AND RICHARD DUMAS IT WAS A MEASURE OF JORDAN'S ABILITY TO GET PAST MAJERLE THAT THAT WORTHY WHO HAS SOME REPUTATION AS A DEFENDER AND IS THE SUNS' MAIN JORDAN COP PICKED UP ONLY ONE FOUL ALL EVENING MICHAEL WAS PAST HIM BEFORE HE COULD GET IN A HACK PAUL WESTPHAL THE PHOENIX COACH ABSOLVED HIS MINIONS OF BLAME WE CAN'T STOP JORDAN NOBODY CAN HE SAID HE ADDED THE DIFFERENCE TONIGHT WAS THAT THEY HAD MICHAEL AND WE DIDN'T THAT WAS AN EXCELLENT SYNOPSIS OF AN EXCELLENT GAME EASILY THE BEST OF THIS PLAYOFF SERIES EXCEPT FOR GAME ONE IN PHOENIX IN WHICH THE SUNS SUFFERED FROM STAGE FRIGHT THE SERIES HAS BEEN CLOSE BUT NOT ALWAYS WELL PLAYED AS EXEMPLIFIED BY THE YOUTAKEITNOYOUTAKEIT TRIPLEOVERTIME CONTEST ON SUNDAY WEDNESDAY'S GAME MADE UP FOR THAT IT WAS AN EDGY SORT OF CONTEST NOT AT ALL THE BLOWOUT THAT THE SUCCESSGORGED CHICAGO STADIUM FAITHFUL HAD COME TO SEE IN EACH QUARTER THE BULLS PULLED TO COMFORTABLESEEMING LEADS ONLY TO HAVE THE SUNS GRIND BACK BEHIND THE INDEFATIGABLE BARKLEY WHO HAD 32 POINTS AND JOHNSON WHO HAD 19 THEIR LAST SURGE BROUGHT THEM FROM EIGHT BEHIND WITH 3 1/2 MINUTES LEFT TO 104106 AT THE 126 MARK AND THEY WOULD HAVE TIED IF THE BULLS' SCOTTIE PIPPEN HADN'T STRIPPED THE BALL FROM POOR MAJERLE ON A SUBSEQUENT TWOONONE FAST BREAK BUT THEN MICHAEL BARRED THE DOOR A COUPLE OF OTHER THINGS SEEM WORTH SAYING ONE IS THAT JORDAN HAS PERFORMED IN THESE PLAYOFFS UNDER THE SELFCREATED CLOUDS OF A LATENIGHT TRIP TO AN ATLANTIC CITY CASINO DURING THE SEMIFINAL SERIES IN NEW YORK AND OF THE CLAIM BY A FORMER GOLFING PARTNER THAT JORDAN FAILED TO FULLY REPAY 12 MILLION IN GOLFING LOSSES WHILE THE FACTS OF THOSE MATTERS ARE IN DOUBT ONE MUST CONCLUDE IT TAKES A PRETTY SOLID CHARACTER TO SLOUGH THEM OFF THE WAY HE HAS FURTHER THERE'S THE CURIOUS MATTER THAT JORDAN IS OFTEN CALLED UPON TO APOLOGIZE FOR LARGE SCORING OUTPUTS ON GROUNDS THAT IT DETRACTS FROM HIS TEAMMATES' EFFECTIVENESS HE WOULD HAVE LITTLE OF THIS AFTER WEDNESDAY'S FRAY SAYING I SAW MY OPPORTUNITIES AND I TOOK 'EM THERE'LL BE ANOTHER GAME HERE TONIGHT AND A COUPLE OF IF NECESSARIES IN PHOENIX SUNDAY AND WEDNESDAY BUT THEY PROBABLY WON'T BE NECESSARY BECAUSE NO TEAM HAS COME BACK FROM A 31 DEFICIT TO WIN AN NBA FINAL THAT'S ALL THE MORE REASON FOR YOU TO GET A TAPE OF WEDNESDAY NIGHT'S GAME YOU'LL WANT TO TELL YOUR GRANDKIDS YOU SAW JORDAN AT HIS BEST AND THEY MAY ASK FOR PROOF