GETTY PETROLEUM CORP JERICHO NY WARREN G WINTRUB 59 YEARS OLD WAS NAMED A DIRECTOR ON THE FIVEMEMBER BOARD AT THIS GASOLINE AND PETROLEUM MARKETER MR WINTRUB WHO IS A RETIRED PARTNER OF COOPERS & LYBRAND ONE OF THE BIG SIX ACCOUNTING AND PROFESSIONAL SERVICES FIRMS SUCCEEDS HOWARD SILVERMAN 57 WHO RESIGNED TO CONCENTRATE ON HIS POSITION AS CHIEF EXECUTIVE AT GRUNTAL & CO A NEW YORK SECURITIES FIRM 9306180161 930618 NEW TRADING SYSTEM SOUNDS CLOSING BELL FOR A MARKET ICON NETWORK OF BROKERS MANAGERS HINTS AT DAY WHEN TRADERS TOSS THOSE TICKETS FOR GOOD BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A DOZEN WALL STREET BROKERAGE FIRMS HAVE AGREED TO HOOK UP TO A NEW ELECTRONIC TRADING NETWORK DESIGNED TO PUSH STOCKTRADING TICKETS ONE STEP CLOSER TO THE GRAVEYARD THE FIRMS INCLUDING MERRILL LYNCH & CO SALOMON INC AND MORGAN STANLEY GROUP INC HAVE SIGNED ON TO THE INTERMARKET TRADING NETWORK WHICH CLAIMS TO CONNECT MONEY MANAGERS BROKERS AND EXCHANGES ON A SINGLE NETWORK THAT CUTS OUT CLERICAL FUNCTIONS AND PICKS AWAY AT THE PAPERWORK ASSOCIATED WITH TRADING THIS BRINGS UP A TRADING TICKET IN FRONT OF ME ON MY SCREEN AND ALLOWS ME TO SEND THE TRADE TO THE BROKER WITHOUT A PHONE CALL OR FOLLOWUP SAYS PETER JENKINS HEAD STOCK TRADER AT SCUDDER STEVENS & CLARK INC A MONEYMANAGEMENT FIRM AND NETWORK USER IT WILL TAKE THE CLERICAL ASPECT OUT OF THE JOB ELECTRONIC TRADING IS NOTHING NEW OF COURSE AND SOME BIG BROKERAGE FIRMS INDIVIDUALLY HAVE USED SIMILAR SYSTEMS FOR DEALINGS WITH MAJOR CLIENTS BUT THIS APPARENTLY IS THE FIRST TIME BROKERS AND MONEY MANAGERS HAVE AGREED TO TAP INTO ONE SYSTEM WALL STREET EXECUTIVES SAY THIS IS THE ONLY WAY TO DO IT ON A BROADERBASED SCALE SAYS STEVEN A JOACHIM HEAD OF STOCKMARKETS TECHNOLOGY AT MERRILL WHICH PLANS TO START USING THE NETWORK IN JULY THE SYSTEM DEVELOPED BY MERRIN FINANCIAL INC HAS DRAWBACKS BROKERS REPORT THAT IT'S MOST EFFECTIVE FOR SMALLER TRADES OF 2000 SHARES OR LESS AND BECAUSE JUST 12 BROKERAGE HOUSES HAVE AGREED TO USE IT CLIENTS CAN'T REACH ALL THE PLACES THEY WANT TO SAYS STEPHEN SHLOSS PRESIDENT AND CHIEF EXECUTIVE OF EXECUTION SERVICES INC A BROKERAGE FIRM ON THE NETWORK MANY BROKERS AND MONEY MANAGERS CURRENTLY PROCESS TRADES BY FILLING OUT PAPER TICKETS PLAYING TELEPHONE TAG AND TYPING FINANCIAL DATA INTO SEPARATE COMPUTER SYSTEMS THUS INCREASING THE CHANCE FOR ERRORS LAST YEAR FOR INSTANCE A SALOMON CLERK MISTAKENLY PUT THROUGH A SELL ORDER FOR AS MUCH AS 500 MILLION IN STOCK JUST BEFORE THE NEW YORK STOCK EXCHANGE'S CLOSING BELL THE ORDER TRIGGERED A SUDDEN DECLINE IN THE MARKET SPURRED BY SELLING PRESSURE FROM THE SINGLE TRADE THE NEW NETWORK WILL ALLOW BROKERAGE FIRMS AND MONEY MANAGERS TO EXECUTE TRADES AND UPDATE ALL CLEARING AND TRADEPROCESSING SYSTEMS IN ONE FELL SWOOP THIS IS LIKE AN INSTANT INVENTORY SYSTEM FOR ME SAYS SCUDDER'S MR JENKINS 9306180160 930618 WHITE HOUSE SEEKS LAW TO FUND FIGHT ON SCHOOL CRIME BY ROCHELLE SHARPE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION UNVEILED LEGISLATION TO FIGHT CRIME IN THE SCHOOLS THE SAFE SCHOOLS ACT WHICH WOULD COST 75 MILLION IN THE FISCAL YEAR BEGINNING OCT 1 WOULD BE THE FIRST FEDERAL PROGRAM EVER TO GIVE MONEY TO SCHOOL DISTRICTS TO DEAL WITH ESCALATING VIOLENCE IN CLASSROOMS UNDER THE PLAN DISTRICTS WITH THE HIGHEST CRIME RATES COULD RECEIVE AS MUCH AS 3 MILLION ANNUALLY FOR UP TO TWO YEARS TO BUY METAL DETECTORS HIRE SECURITY GUARDS AND DEVELOP VIOLENCEPREVENTION PROGRAMS TO ENCOURAGE DISTRICTS TO FOCUS ON LONGTERM PREVENTION RATHER THAN IMMEDIATE INTERVENTION THE BILL WOULD ENCOURAGE SCHOOLS TO SPEND ONLY ONETHIRD OF THEIR MONEY ON SECURITY DEVICES LIKE METAL DETECTORS WE WANT TO MAKE IT VERY CLEAR WE'RE NOT GOING TO TOLERATE VIOLENCE IN SCHOOLS EDUCATION SECRETARY RICHARD RILEY SAID AT A NEWS CONFERENCE IN A SPEECH LAST WEEK HE SAID ALL OUR EFFORTS TO RAISE THE STANDARD OF AMERICAN EDUCATION WILL BE TO NO AVAIL UNLESS WE PROVIDE CHILDREN WITH A SAFE AND DISCIPLINED ENVIRONMENT THAT IS CONDUCIVE TO LEARNING THE LEGISLATION IS AIMED AT HELPING THE NATION ACHIEVE ONE OF ITS SIX EDUCATION GOALS TO ERADICATE DRUGS AND VIOLENCE FROM SCHOOLS BY THE YEAR 2000 SURVEYS SHOW THAT ONE OF EVERY FIVE HIGH SCHOOL STUDENTS CARRIES A FIREARM KNIFE OR CLUB TO SCHOOL ON A REGULAR BASIS SOME 16 OF HIGH SCHOOL SENIORS REPORT BEING THREATENED WITH A WEAPON AT SCHOOL AND 7 SAY THEY HAVE BEEN INJURED IN RECENT YEARS SOME SCHOOLS HAVE SPENT MONEY INTENDED FOR TEXTBOOKS TO BUY METAL DETECTORS A FEW HAVE LAUNCHED PEER MEDIATION AND CONFLICTRESOLUTION PROGRAMS DESIGNED TO SHOW CHILDREN THAT THE VIOLENCE THEY SEE ON TELEVISION AND IN THEIR NEIGHBORHOODS NEED NOT BE USED TO SOLVE THEIR PROBLEMS SOME OF THE VIOLENCE REDUCTION PROGRAMS SHOULD DEAL WITH RACIAL AND ETHNIC CONFLICTS SAID REP JOSE SERRANO D NY ONE OF THE BILL'S SPONSORS THE FEDERAL MONEY ALSO COULD BE USED TO TEACH TEACHERS HOW TO INTERVENE IN CONFLICTS AND TO PAY FOR PSYCHOLOGISTS TO COUNSEL STUDENTS WHO HAVE WITNESSED VIOLENT CRIME LEGISLATIVE AIDES SAID 9306180159 930618 US STEEL IMPORTS FELL 13 FOR FOUR MONTHS PITTSBURGH US STEEL IMPORTS DROPPED 13 DURING THE FIRST FOUR MONTHS OF 1993 AN INDICATION THAT PENALTIES IMPOSED IN JANUARY ON STEEL IMPORTS ARE CAUSING FOREIGN STEEL COMPANIES TO RETREAT FROM THE MARKET STEEL IMPORTS TOTALED 4939000 TONS THROUGH APRIL OF THIS YEAR COMPARED WITH 5680000 FOR THE YEAREARLIER PERIOD IMPORTS FELL 14 IN APRIL FROM A MONTH EARLIER US EXPORTS JUMPED 16 IN APRIL FROM MARCH TO 416000 TONS FROM 360000 TOTAL EXPORTS FOR THE YEAR TO DATE WERE UP 69 FROM A YEAR EARLIER MEANWHILE STEEL PRICES CONTINUED RISING AND DOMESTIC STEEL PRODUCERS CONTINUED TO INCREASE PURCHASES OF SEMIFINISHED STEEL IMPORTS ACCORDING TO THE AMERICAN INSTITUTE FOR INTERNATIONAL STEEL INC THE INSTITUTE SAID THE INCREASED PURCHASES CAN BE ATTRIBUTED TO THE LIKELIHOOD OF LONGTERM ACCESS TO OFFSHORE SUPPLIES OF HIGHQUALITY STEEL PRODUCTS BEING SHUT OFF EXPECTATIONS OF FURTHER DOMESTIC PRICE INCREASES LATER THIS YEAR AND THE POSSIBILITY OF STRIKECAUSED DISRUPTIONS IN THE STEEL AND AUTOMOBILE MARKETS 9306180158 930618 FINANCING BUSINESS CIRCUS CIRCUS ENTERPRISES INC CIRCUS CIRCUS ENTERPRISES INC LAS VEGAS ANNOUNCED A 3FOR2 STOCK SPLIT PAYABLE JULY 23 TO STOCK OF RECORD JULY 9 THE CASINO COMPANY'S STOCK ROSE 1875 OR 32 TO 60375 IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING 9306180157 930618 BUSINESS BRIEF BLACKSTONE AND UNIT OF EQUITABLE COS TO SELL ALMOST ALL OF 34 CNW STAKE CHICAGO BLACKSTONE CAPITAL PARTNERS AND EQUITABLE COS' DONALDSON LUFKIN & JENRETTE SUBSIDIARY ARE JUMPING OFF THE DEBTLADEN TRAIN THEY TOOK OVER IN 1989 UNLOADING ALMOST ALL OF THEIR COMBINED 34 STAKE IN CHICAGO & NORTH WESTERN HOLDINGS AT YESTERDAY'S CLOSE OF 2050 A SHARE ON THE NEW YORK STOCK EXCHANGE THE CNW HOLDINGS ARE VALUED AT ABOUT 300 MILLION A HEFTY PROFIT FROM THE INITIAL 84 MILLION COST OF THAT EQUITY STAKE THE RAILROADHOLDING COMPANY REGISTERED A SECONDARY OFFERING OF 137 MILLION SHARES WITH THE SECURITIES AND EXCHANGE COMMISSION AND ALSO DISCLOSED THAT BLACKSTONE AND DONALDSON LUFKIN PLAN TO SELL ANOTHER 500000 SHARES TO A UNION PACIFIC CORP SUBSIDIARY OF THAT NUMBER BLACKSTONE AND RELATED PERSONS ARE OFFERING 12 MILLION SHARES AND DONALDSON LUFKIN AND AFFILIATES WILL SELL 23 MILLION SHARES UNION PACIFIC'S PURCHASE WILL BOOST ITS OWNERSHIP OF CNW COMMON STOCK TO ABOUT 30 FROM 294 ALTHOUGH THAT STAKE CURRENTLY IS NONVOTING AND TWO TOP UNION PACIFIC EXECUTIVES INCLUDING DREW LEWIS CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL JOIN THE NINEMEMBER CNW BOARD AFTER COMPLETION OF THE OFFERING AND WITH INTERSTATE COMMERCE COMMISSION APPROVAL THE FIVE MEMBERS OF THE BOARD WHO ARE DESIGNEES OF BLACKSTONE AND DONALDSON LUFKIN INTEND TO RESIGN CNW SAID CNW THE NATION'S EIGHTHLARGEST RAILROAD IS A CRUCIAL RAIL SYSTEM LINKING THE WEST AND SOME EASTERN STATES WITH SHIPMENTS OF CARS CHEMICALS AGRICULTURAL GOODS AND STEEL IN ADDITION ALMOST 25 OF THE COMPANY'S REVENUE WHICH TOTALED 985 MILLION LAST YEAR COMES FROM HAULING COAL IN 1992 CNW HAD A NET LOSS OF 562 MILLION OR 315 A SHARE INCLUDING A 91 MILLION LOSS ON THE PREPAYMENT OF DEBT IN THE FIRST QUARTER OF 1993 CNW EARNED 146 MILLION OR 33 CENTS A SHARE ON REVENUE OF 2547 MILLION ANALYSTS APPLAUDED THE PLANNED SALE GOOD SAID REMY FISHER VICE PRESIDENT AT KEMPER FINANCIAL SERVICES NOTING THE SPARSE AMOUNT OF CNW SHARES TRADING KEMPER FINANCIAL HOLDS MORE THAN A 5 STAKE OF CNW SINCE LAST DECEMBER BLACKSTONE AND DONALDSON LUFKIN HAVE LIGHTENED THEIR CNW HOLDINGS REDUCING THEIR STAKES TO THE CURRENT 287 AND 55 RESPECTIVELY FROM 335 AND 116 A CNW SPOKESWOMAN SAID 9306180156 930618 DEEPDISCOUNT BATTLES CONSUME EUROPE AS RETAILERS SEEK TO KEEP MARKET SHARE BY CACILIE ROHWEDDER STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS GERMANS ARE WAGING AN AGGRESSIVE EXPANSION ON THE EUROPEAN CONTINENT AND IN BRITAIN WITH ROCKBOTTOM PRICES AND TOUGH SALES TACTICS BY THEIR DISCOUNT CHAINS ALDI GMBH THE PIONEER OF HEAVY DISCOUNTING IN EUROPE KNOWN FOR ITS LIMITED RANGE OF PRIVATELABEL PRODUCTS HAS 3360 STORES IN SEVEN EUROPEAN COUNTRIES TWO SOUTHERN GERMAN COMPANIES LIDL & SCHWARZ GMBH AND NORMA LEBENSMITTEL GMBH ARE OPERATING DISCOUNT STORES IN FRANCE AND BOTH ARE PLANNING TO ENTER THE BRITISH MARKET LIDL ALREADY HAS SET UP SHOP IN SPAIN AND ITALY OTHERS ARE JOINING THE GERMAN DOMINATION OF EUROPEANS' SHOPPING CARTS FRANCE'S CARREFOUR SA AND PROMODES SA ARE OPENING DISCOUNTERS IN THEIR OWN COUNTRY AS WELL AS IN BRITAIN AND SPAIN DANSK SUPERMARKED AS FROM AARHUSS DENMARK IS EXPANDING INTO BRITAIN AND GERMANY AND NORWAY'S HAAKON GRUPPEN AS IS MOVING INTO SWEDEN THE RAPID EXPANSION OF DISCOUNT STORES HAS BOOSTED DISCOUNT SALES ALL OVER EUROPE LAST YEAR SALES GREW 156 TO 5405 BILLION IN 14 EUROPEAN COUNTRIES SURVEYED BY MARKET RESEARCH FIRM AC NIELSEN LARGELY DUE TO 80 NEW STORES OPENED BY GERMAN CHAINS THE NUMBER OF DISCOUNTERS IN FRANCE ALONE ROSE ALMOST 94 IN 1992 EVERYBODY IS GETTING INTO THE DISCOUNT MODE SAYS RETAIL EXPERT PHILIPPE KAAS AT OC&C STRATEGY CONSULTANTS IN PARIS RETAILERS ARE JUMPING ON THE BANDWAGON BY OPENING THEIR OWN DISCOUNT CHAINS OR PUTTING LOWPRICED PREMIER PRIX PRODUCTS ON SUPERMARKET SHELVES HE ADDS BESIDES STARTING THEIR OWN DISCOUNT FORMATS SUPERMARKETS ARE FIGHTING BACK BY OFFERING LOWERQUALITY BRANDS THAT ARE OFTEN CHEAPER THAN THEIR OWN PRIVATE LABELS THEY ALSO VARY PRICES ACCORDING TO REGIONS OR INCREASE PROMOTIONS AND SPECIAL OFFERS THE GERMAN RETAILER SPAR HANDELS AG IS LAUNCHING 200 PRODUCTS UNDER A NEW STORE BRAND NAME AND WITH PRICES MATCHING ALDI'S THIS IS A DIRECT ANSWER TO ALDI SAYS SPARSPOKESMAN JUERGEN BORK HE SAYS SPAR WANTS TO OFFER THE SAME 200 PRODUCTS THAT MAKE UP 80 OF ALDI'S SALES TO BRING THE DISCOUNT BUSINESS INTO OUR OWN STORES ANALYSTS SAY TRADITIONAL RETAILERS SHOULD FOCUS ON THEIR STRENGTHS RATHER THAN ATTACK THE DISCOUNTERS' PRICES INDUSTRY EXPERTS ADVISE RETAILERS TO FOCUS ON SERVICE QUALITY TECHNOLOGY AND FRESH OR PREPARED FOODS THAT THE CHEAPER RIVALS GENERALLY DON'T STOCK THE RAPID GROWTH OF CUTRATE DISCOUNTERS FORCES NOT ONLY TRADITIONAL RETAILERS BUT ALSO OLDER DISCOUNT CHAINS TO DEVELOP A CLEAR PROFILE IN THE MARKET DENMARK'S NETTO SAYS IT RECENTLY STARTED TO SELL FRESH MEAT IN ITS 51 BRITISH OUTLETS LOCOST A BRITISH DISCOUNT CHAIN OWNED BY ARGYLL GROUP PLC SAYS IT HAS REACTED BY OFFERING A LARGER PRODUCT RANGE AND MORE KNOWN BRANDS BUT ANALYSTS SAY THE DANGER IS THAT SOCALLED SOFT DISCOUNTERS GET CAUGHT BETWEEN THE QUALITY OF SOPHISTICATED SUPERMARKETS AND THE AGGRESSIVE PRICES OF HARD DISCOUNTERS SUCH AS ALDI ANDREW STEWART AN INDUSTRY ANALYST WITH BARCLAYS DE ZOETE WEDD LTD IN LONDON SAYS THAT'S WHAT HAPPENED TO KWIK SAVE GROUP PLC THE OWNER OF BRITAIN'S LARGEST DISCOUNT CHAIN KWIK SAVE NOW CARRIES 2500 LINES AND ITS STORES ARE A LITTLE LARGER THEY NO LONGER HAVE THE COST STRUCTURE OF A DISCOUNTER HE SAYS MR STEWART PREDICTS THAT ALDI WHICH STOCKS ABOUT 600 ITEMS WILL HAVE 238 STORES IN BRITAIN BY 1997 AT THE END OF 1992 ALDI HAD 63 BRITISH OUTLETS SINCE 1990 WHEN ALDI OPENED ITS FIRST BRITISH STORE IN BIRMINGHAM THE SPREAD OF DEEP DISCOUNTERS HAS BEEN EXPLOSIVE BRITISH RETAILERS LEFT THE DOOR OPEN FOR EUROPEAN LIMITEDLINE DISCOUNTERS SAYS JOHN BUITEKANT A MARKETING EXECUTIVE WITH THE NETTO CHAIN WE ATTACKED A MARKET THAT HAD BEEN UNDERATTENDED HE SAYS SO FAR DISCOUNT STORES ACCOUNT FOR 73 OF THE BRITISH GROCERY FOOD MARKET AND ANALYSTS EXPECT THAT NUMBER TO DOUBLE IN THE NEXT FEW YEARS HOWEVER FEW BELIEVE DISCOUNT SHOPPING WILL REACH THE IMPORTANCE IT HAS IN GERMANY WHERE THE CHEAPER STORES CONTROL 23 OF THE FOOD MARKET 9306180155 930618 IBM SPEEDS DRIVE TO SHED REAL ESTATE AS PART OF PROGRAM TO TRIM JOBS COSTS BY LAURIE HAYS STAFF REPORTER OF THE WALL STREET JOURNAL ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP IS ACCELERATING A MASSIVE PUSH TO SHED ITS VAST REAL ESTATE HOLDINGS FOLDING UP SALES OFFICES AND EVEN ENTERTAINING THE IDEA OF SELLING ITS HEADQUARTERS FOR THE RIGHT PRICE ALREADY THIS YEAR IBM HAS PUT UP FOR SALE ONE OF THE MOST PROMINENT BUILDINGS IN ITS CONSTELLATION OF WESTCHESTER COUNTY OFFICES A 550EMPLOYEE IM PEI BUILDING IN PURCHASE NY THAT IT BOUGHT ONLY EIGHT YEARS AGO ELSEWHERE AROUND THE COUNTRY ITS SALES FORCE IS WORKING OUT OF SHARED DESKS AND WITH FILE CABINETS ON WHEELS AS IBM SHUCKS AT LEAST ONE QUARTER OF ITS OFFICE SPACE OFFICIALS SAID THE ARMONK HEADQUARTERS ITSELF ISN'T CURRENTLY ON THE MARKET BUT THEY AREN'T RULING OUT THAT POSSIBILITY NOTHING IS UNIQUE IT'S NOT LIKE TOM WATSON'S BONES ARE BURIED THERE SAID A SPOKESMAN ALLUDING TO IBM'S LEGENDARY FOUNDER WE'LL CONSIDER AN OFFER ON ANY BUILDING IBM'S COST CUTTING WAS UNDER WAY BEFORE THE NEW CHAIRMAN LOUIS V GERSTNER WAS APPOINTED IN MARCH HE HASN'T YET PUT HIS OFFICIAL STAMP ON THE OVERALL EFFORT BUT AIDES SAY THAT TAKING OUT IBM'S FAT IS A TOP PRIORITY NOW THE COMPANY IS OFFICIALLY FORECASTING THE POSSIBILITY OF SIGNIFICANT CHARGES AND CASH REQUIREMENTS WHEN THE RESTRUCTURING PLAN IS FINALLY IN PLACE ACCORDING TO THE PROSPECTUS FOR A RECENT 11 BILLION PREFERRED STOCK OFFERING THERE IS A LOT OF PRESSURE TO GET THE COSTS DOWN SAID JOHN BRECKENRIDGE REALESTATE SERVICE DIRECTOR OF US OPERATIONS WE'RE TALKING ABOUT A FULLCOURT PRESS ON OPERATING EXPENSES SAID DANIEL MANDRESH AN ANALYST AT MERRILL LYNCH CAPITAL MARKETS WHO FOLLOWS IBM HE ADDED THE SIGNALS ARE ALL OVER THE PLACE THAT IBM NEEDS CASH TO DATE IBM HAS SLASHED MORE THAN 100000 JOBS IBM CUT ITS DIVIDEND EARLIER THIS YEAR TO 216 A YEAR FROM 484 ANALYSTS PREDICT AS MANY AS 100000 MORE JOBS COULD GO THIS YEAR THEY EXPECT ANOTHER CUT IN THE DIVIDEND THAT WOULD BRING IT DOWN TO AROUND 1 IN THE FALL THEY ALSO DON'T RULE OUT MULTIPLE PLANT CLOSINGS IN THE NEAR FUTURE THE CONSOLIDATION OF REAL ESTATE IS CHANGING WORK HABITS FOR IBM EMPLOYEES EACH OF WHOM IN BETTER TIMES COULD COUNT ON HAVING NOT ONLY HIS JOB BUT HIS OWN DESK IBM TRYING TO LOOK ON THE BRIGHT SIDE SAID SOME OF THE CHANGES ARE ADVANTAGEOUS IN THE CASE OF THE SALES FORCE IT WILL PUT EMPLOYEES CLOSER TO CUSTOMERS OFFICIALS SAY SALESMEN ARE BEING EQUIPPED WITH IBM PORTABLE COMPUTERS CALLED THINKPADS THEIR HOME TELEPHONES ARE BEING TIED INTO COMPANY VOICE MAIL NETWORKS SO THEY CAN WORK OUT OF THEIR HOMES OR ON THE ROAD IN PLACE OF OFFICE BUILDINGS IBM IS SETTING UP PRODUCTIVITY CENTERS WHERE EMPLOYEES ONLY OCCASIONALLY REPORT TO WORK THE NEW JERSEY SALES FORCE FOR EXAMPLE WILL BE CONSOLIDATED INTO ONE BUILDING FROM FIVE WORKERS WILL HAVE PORTABLE FILE CABINETS THAT THEY CAN PULL UP TO A SHARED DESK WHEN THEY COME IN OTHER TIMES THEY WILL BE ON THE ROAD WITH A PORTABLE COMPUTER AND A TIME CHART WHERE THEY WILL KEEP TRACK OF HOURS WORKED AS AN INCENTIVE TO TRIM REAL ESTATE COSTS IBM HAS STARTED A PROGRAM THAT ALLOWS OPERATING UNITS TO GIVE UP A FACILITY IN ORDER TO BETTER ITS OPERATING PROFITS AND BECOME MORE COMPETITIVE IBM WILL CENTRALLY PICK UP THE COST OF THE FACILITY UNTIL IT CAN BE SOLD OR SUBLEASED LEAVING THE UNIT FREE OF THE EXPENSES AND BOTHER THE REALESTATE PARING IS VISIBLE ALL OVER THE COUNTRY FOR RENT SIGNS WITH IBM'S LOGO DOT THE COUNTRYSIDE FROM CORAL GABLES FLA TO TUCSON ARIZ IBM WON'T OFFICIALLY SAY HOW MUCH REAL ESTATE IT IS DROPPING BUT MR BRECKENRIDGE SAID AN ESTIMATE OF FIVE MILLION SQUARE FEET BY ANALYSTS IS CONSERVATIVE IT'S A SIGNIFICANT AMOUNT HE SAID BY COMPARISON ONE OF NEW YORK'S WORLD TRADE CENTER TOWERS HAS FOUR MILLION SQUARE FEET OF SPACE SOME FACTORIES ALSO WILL RENT OUT UNUSED SPACE TO OTHER COMPANIES ACCORDING TO IBM OFFICIALS COULDN'T QUANTIFY HOW MUCH HOWEVER IBM OFFICIALLY PUT THE 425000SQUAREFOOT PURCHASE BUILDING ON THE MARKET EARLIER THIS YEAR THE COMPANY WILL LITERALLY TURN THE LIGHTS OUT THERE IN THE NEXT MONTH WHEN ALL THE EMPLOYEES ARE MOVED TO EITHER ARMONK OR WHITE PLAINS OR WILL HAVE LEFT THE COMPANY THERE'S NO OFFICIAL ASKING PRICE FOR THE PURCHASE BUILDING BUT REALESTATE EXPERTS IN WESTCHESTER COUNTY WHERE THE VALUE OF OFFICE SPACE IS DEPRESSED BY THE CURRENT GLUT SAY IT PROBABLY COULD FETCH AROUND 40 MILLION THERE HAVEN'T BEEN ANY OFFERS YET BUT A LOT OF INTEREST SAID MICHAEL SIEGEL EXECUTIVE DIRECTOR OF THE WESTCHESTER/FAIRFIELD OFFICE OF EDWARD S GORDON CO A REALESTATE BROKERAGE FIRM 9306180154 930618 ECONOMY TRADE DEFICIT GREW IN APRIL TO 1049 BILLION FIGURE REFLECTS POOR HEALTH OF PARTNERS OVERSEAS MODEST GROWTH IN US BY COLLEEN AE SLEVIN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US TRADE DEFICIT EXPANDED TO 1049 BILLION IN APRIL ONLY SLIGHTLY LARGER THAN MARCH'S 1045 BILLION DEFICIT BUT STILL THE LARGEST GAP IN FOUR YEARS THE COMMERCE DEPARTMENT SAID WHILE IMPORTS FELL BY 477 MILLION TO 4887 BILLION EXPORTS FELL 511 MILLION TO 3838 BILLION ANALYSTS GENERALLY WERE EXPECTING AN IMPROVEMENT IN THE APRIL TRADE DEFICIT TO SOMETHING CLOSER TO 8 BILLION AFTER THE JUMP FROM FEBRUARY'S 790 BILLION BUT THE CONTINUED POOR HEALTH OF MANY OF THE NATION'S TRADING PARTNERS COUPLED WITH MODEST GROWTH IN THE DOMESTIC ECONOMY PREVENTED A REVERSAL THE PROBLEM IS WE'RE RECOVERING AND THEY'RE DECLINING SAID BRIAN HORRIGAN AN ECONOMIST AT LOOMIS SAYLES & CO IN BOSTON THAT'S A LETHAL COMBINATION FOR THE TRADE DEFICIT JAPAN CONTINUED TO ACCOUNT FOR THE LARGEST SHARE OF THE US TRADE DEFICIT THE USJAPANESE TRADE GAP GREW SLIGHTLY TO 550 BILLION FROM 526 BILLION AGAINST THE BACKDROP OF A GROWING DEFICIT THE US THIS MONTH PRESENTED JAPAN WITH A SERIES OF TRADE DEMANDS AIMED AT EXPANDING US EXPORTS TO JAPAN AND REDUCING THE IMBALANCE THE SECONDLARGEST DEFICIT WAS WITH CHINA THAT GAP WIDENED TO 149 BILLION FROM 146 BILLION IN MARCH CHINA'S FAVORABLE TRADE STATUS RECENTLY WAS RENEWED FOR A YEAR BY THE CLINTON ADMINISTRATION HERALDING AN APPARENT BRIGHT SPOT FOR USJAPANESE TRADE RELATIONS US TRADE REPRESENTATIVE MICKEY KANTOR YESTERDAY POINTED TO DATA SHOWING THAT FOREIGN COMPANIES CAPTURED A 196 SHARE OF JAPAN'S SEMICONDUCTOR MARKET IN THE FIRST QUARTER THE FIGURE REPRESENTS THE SECOND STRAIGHT QUARTER THAT THE FOREIGN SHARE HAS ENDED UP NEAR THE 20 MARK THAT THE US INSISTS IT WANTS AS PART OF A 1991 ACCORD WITH JAPAN FOREIGN COMPANIES GOT A 202 SHARE OF THE JAPANESE CHIP MARKET IN THE FOURTH QUARTER OF 1992 MR KANTOR SAID THE US STILL WANTS THIS YEAR'S FOREIGN SHARE TO AVERAGE 20 LOOMIS SAYLES'S MR HORRIGAN BELIEVES THAT THERE IS SOME HOPE THAT US EXPORTS MIGHT BE HELPED BY TRADE WITH THE GROWING ECONOMIES OF LATIN AMERICA AND EAST ASIA IN THE COMING MONTHS BUT UNTIL JAPAN CANADA AND WESTERN EUROPE RECOVER MORE HE SAID AN ESTIMATE OF A 105 BILLION DEFICIT ISN'T EVEN PESSIMISTIC ANYMORE IT'S DOWNRIGHT REASONABLE 9306180153 930618 SUBARU SETS DISCOUNT ON ITS LEGACY LEASES DETROIT SADDLED WITH NEARLY 10 MONTHS' WORTH OF UNSOLD CARS SUBARU OF AMERICA INC IS LAUNCHING A DISCOUNT LEASE DEAL FOR ITS USBUILT LEGACY SEDANS SUBARU THE US MARKETING ARM OF JAPAN'S FUJI HEAVY INDUSTRIES LTD WILL OFFER LEASE PAYMENTS OF 199 A MONTH FOR 36 MONTHS ON WELLEQUIPPED LEGACY SEDANS THAT LIST FOR 16695 THE 199 MONTHLY PAYMENT IS BASED ON A 1000 DOWN PAYMENT A SUBARU SPOKESMAN SAID SUBARU DEALERS ALSO ARE RECEIVING DISCOUNTS OF AS MUCH AS 2000 ON LEGACY MODELS WHICH THEY CAN USE TO DROP THE RETAIL PRICE SUBARU ALSO SAID IT WILL CONTINUE A DISCOUNT LEASE PROGRAM ON ITS NEW IMPREZA SUBCOMPACT OFFERING LEASE MONTHLY PAYMENTS AS LOW AS 159 FOR 48 MONTHS SUBARU IS TRYING TO JUMPSTART LEGACY SALES TO AVOID FURTHER PRODUCTION CUTS BY FUJI AT THE JOINTVENTURE FACTORY IN LAFAYETTE IND THAT IT SHARES WITH JAPAN'S ISUZU MOTORS LTD AT THE END OF MAY SUBARU HAD A 297DAY SUPPLY OF UNSOLD LEGACYS 9306180152 930618 MERIDIAN BUYS J&J UNIT'S TESTS CINCINNATI MERIDIAN DIAGNOSTICS INC PURCHASED THE MONOSPOT AND MONOLERT INFECTIOUSMONONUCLEOSISTEST LINES OF ORTHODIAGNOSTIC SYSTEMS INC A JOHNSON & JOHNSON UNIT FOR 31 MILLION IN CASH AND ADDITIONAL PAYMENTS FOR INVENTORY MERIDIAN SAID THE J&J LINES REPRESENT ABOUT 4 MILLION OF THE ESTIMATED 16 MILLION WORLDWIDE ANNUAL MARKET FOR INFECTIOUSMONONUCLEOSIS TESTS MERIDIAN WHICH SELLS SEVERAL TYPES OF DIAGNOSTIC TESTS AND HAD SALES OF 14 MILLION IN ITS LAST FISCAL YEAR ALSO OFFERS TWO TESTS FOR MONONUCLEOSIS 9306180151 930618 SKEPTICISM RISES IN PEPSI SYRINGE SCARE AS MORE ARE ARRESTED FOR FALSE CLAIMS BY MICHAEL J MCCARTHY AND NIKHIL DEOGUN STAFF REPORTERS OF THE WALL STREET JOURNAL AUTHORITIES ARE GROWING INCREASINGLY SKEPTICAL ABOUT REPORTS OF TAMPERING WITH PEPSI SOFT DRINKS FOUR MORE PEOPLE WERE ARRESTED AROUND THE COUNTRY ON FEDERAL CHARGES OF FILING FALSE TAMPERING CLAIMS YESTERDAY BRINGING THE TOTAL TO FIVE FEDERAL OFFICIALS SAID AT LEAST TWO OTHER PEOPLE WERE ARRESTED BY LOCAL AUTHORITIES AND MORE ARRESTS ARE EXPECTED AT LEAST THREE OTHERS HAVE RECANTED THEIR CLAIMS THE ARRESTS ADDED TO DOUBTS ABOUT THE MORE THAN THREE DOZEN TAMPERING REPORTS THAT HAVE SPRUNG UP SINCE MONDAY FROM PEOPLE WHO CLAIMED TO HAVE FOUND SYRINGES AND OTHER OBJECTS IN CANS OF PEPSI THE FOOD AND DRUG ADMINISTRATION DECLARED THAT IT SAW NO EVIDENCE OF NATIONWIDE TAMPERING WITH PEPSI IT WAS THE MOST DEFINITIVE SPLASH OF COLD WATER YET ON THE PEPSI SCARE IN REMARKS IN WASHINGTON DC THE FDA'S COMMISSIONER DAVID E KESSLER SAID THAT BASED ON THE DISPARATE LOCATIONS OF PEPSI BOTTLING PLANTS PRODUCTION DATES THAT ARE MONTHS APART AND THE VARIETY OF PRODUCTS AND CONTAINERS INVOLVED IT IS SIMPLY NOT LOGICAL TO CONCLUDE THAT A NATIONWIDE TAMPERING HAS OCCURRED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY PEPSICO INC SHARES JUMPED 125 TO 36875 PEPSICO SAID IT'S STILL TOO EARLY TO DETERMINE WHETHER SALES HAVE BEEN HURT LARGE RETAILERS ARE APPARENTLY STICKING BY THE COMPANY KROGER CO SCHNUCK MARKETS INC AND GREAT ATLANTIC & PACIFIC TEA CO ALL SAID THEY HAVEN'T PULLED PEPSI CANS FROM THEIR SHELVES ONE RETAILER SAFEWAY INC DID PULL PEPSI CANS TUESDAY FROM A SINGLE STORE IN SAN JOSE CALIF AFTER A WOMAN TOLD POLICE SHE HAD FOUND A SYRINGE IN A CAN OF CAFFEINEFREE PEPSI OF THE COMPANY'S 230 STORES IN NORTHERN CALIFORNIA THAT WAS THE ONLY REPORTED SYRINGE CASE DEBRA LAMBERT A SPOKESWOMAN FOR SAFEWAY SAID PEPSI REPLACED THE PRODUCTS THE NEXT DAY WITH A BATCH FROM A DIFFERENT PLANT SHE ADDED THAT THERE HAD BEEN NO NOTICEABLE DECLINE IN SALES BUSINESS WAS BRISK AFTER THE PRODUCT WAS REPLACED SHE SAID PEOPLE SEEM TO BE SEEING IT AS FRAUD AS MORE TAMPERING ACCOUNTS UNRAVEL MOST MARKETING EXPERTS SAID THEY EXPECT THE PEPSI TRADEMARK AND IMAGE TO SUFFER LITTLE LASTING DAMAGE IT'S A TEMPEST IN A SODA CAN SAID JOSEPH SMITH CHAIRMAN OF MARKETRESEARCH COMPANY OXTOBYSMITH INC SURE THERE'LL BE NERVOUSNESS FOR A LITTLE BIT AND A COUPLE DAYS' SALES DECLINES BUT THINGS WILL QUICKLY RETURN TO NORMAL BUT MORE DRASTIC ACTION LIKE SUSPENDED PRODUCTION OR A RECALL STILL MAY BE NEEDED CONTENDED LARRY BARTON A RESEARCHER AT THE UNIVERSITY OF NEVADA WHO WROTE A BOOK ANALYZING 800 CORPORATE DISASTERS INCLUDING TAMPERING AND SABOTAGE WHENEVER THERE'S A LINGERING SUSPICION AMONG CONSUMERS THERE COULD BE A HEMORRHAGING OF BRAND GOODWILL INDEED SOME PUZZLING REPORTS AROSE THAT CALLED INTO QUESTION PEPSI'S ASSERTION THAT THE SPEED OF PRODUCTION ON ITS AUTOMATED CANNING LINES MAKE IT VIRTUALLY IMPOSSIBLE FOR FOREIGN ITEMS TO BE INSERTED INTO BEVERAGES IN A BOTTLING PLANT IN JACKSONVILLE FLA AN FDA INVESTIGATOR CONFIRMED THAT HE SAW AN XRAY OF WHAT APPEARED TO BE A 15INCH SCREW IN AN UNOPENED CAN OF DIET PEPSI AND A TELEMARKETER WHO WORKED FOR THE MILWAUKEE SENTINEL WROTE A FIRSTPERSON ACCOUNT FOR THE PAPER ABOUT HOW SHE FOUND A SYRINGE IN HER PEPSI CAN IN THE OFFICE LOUNGE SOFTDRINK MAKERS ACKNOWLEDGE THAT FOREIGN OBJECTS BECAUSE OF IMPERFECTIONS IN ANY MANUFACTURING AND PACKAGING PROCESS CAN END UP IN CONTAINERS A PEPSI SPOKESMAN SAID THE SCREW FOUND IN THE SEALED DIET PEPSI CAN IN FLORIDA HAD DROPPED OFF PRODUCTION EQUIPMENT IN A BOTTLING PLANT STATISTICALLY HOWEVER SUCH INCIDENTS ARE EXCEEDINGLY RARE CRISISMANAGEMENT SPECIALISTS BELIEVE THE COPYCAT HOAXES WHICH FOLLOWED LAST WEEK'S INITIAL TAMPERING REPORTS FROM WASHINGTON STATE WERE SPARKED BY GREED AND THE OUTLANDISH NATURE OF THE TAMPERING SOME HOAXSTERS MAY SIMPLY HAVE BEEN LOOKING FOR ATTENTION OTHERS MAY HAVE HOPED TO CASH IN ON ANY SETTLEMENT PEPSI MAY HAVE OFFERED TO CLAIMANTS WE'VE HAD STORIES ABOUT MICE AND ROACHES IN SODAS SAYS FREDERICK KOENIG A SOCIOLOGY PROFESSOR AT TULANE UNIVERSITY THIS CAUGHT ON BECAUSE IT'S BIZZARE 9306180150 930618 MARKETING & MEDIA FCC PROMISES MOVING UP DATE FOR CABLE ROLLBACK BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FEDERAL COMMUNICATIONS COMMISSION MEMBERS PROMISED LAWMAKERS THEY WOULD CONSIDER MOVING UP THE DATE FOR CABLE TELEVISION RATE ROLLBACKS AFTER CONGRESS APPROVES FUNDS FOR ENFORCEMENT AT YESTERDAY'S HEARING BEFORE THE HOUSE TELECOMMUNICATIONS PANEL FCC CHAIRMAN JAMES QUELLO DEFENDED THE AGENCY'S DECISION LAST WEEK TO DELAY ENFORCEMENT OF THE NEW RULES UNTIL OCT 1 HE BLAMED THE DELAY ON A LACK OF FUNDS FOR STAFF TO PROCESS THE MOUNTAINS OF PAPERWORK LIKELY TO BE GENERATED BY THE 1992 LAW LAWMAKERS ARE EXPECTED SOON TO APPROVE AN EXTRA 115 MILLION FOR THAT PURPOSE THE CABLE RATE RULES ORIGINALLY WERE TO GO INTO EFFECT MONDAY WITH ROLLBACKS AND REFUNDS RETROACTIVE TO THAT DATE WITH THE POSTPONEMENT HOWEVER CONSUMERS AREN'T LIKELY TO SEE ANY SAVINGS IN THEIR MONTHLY CABLE BILLS UNTIL EARLY NEXT YEAR WITH REFUNDS RETROACTIVE TO OCT 1 CLEARLY IT WAS NOT THE INTENT OF CONGRESS TO PASS A CABLE BILL IN 1992 THAT WOULD NOT BENEFIT CONSUMERS UNTIL 1994 SAID REP EDWARD J MARKEY CHAIRMAN OF THE TELECOMMUNICATIONS SUBCOMMITTEE THE MASSACHUSSETS DEMOCRAT TOLD THE THREE FCC MEMBERS THAT IT IS UNACCEPTABLE FOR THE AGENCY TO LOCK IN CABLE COMPANY OVERCHARGES FROM JUNE TO OCTOBER THUS TAKING A QUARTER OF A BILLION DOLLARS OUT OF THE POCKETS OF CABLE CONSUMERS THE FCC HAS ESTIMATED THE RULES ADOPTED APRIL 1 WOULD SAVE CONSUMERS 1 BILLION ANNUALLY FCC CHAIRMAN QUELLO SAID HE DIDN'T BELIEVE THE PUBLIC INTEREST IS SERVED BY A CHAOTIC RUSH TO REGULATORY JUDGMENTS BY AN UNDERSTAFFED UNDERFINANCED COMMISSION WITHOUT OFFICE SPACE AND STAFF COMMISSIONER ERVIN DUGGAN SAID CONSUMER COMPLAINTS INDUSTRY FILINGS AND OTHER PAPERWORK WOULD PILE UP CAUSING CONFUSION AND POSSIBLY RESULTING IN LEGAL CHALLENGES IT WOULD HAVE INVITED CONTEMPT FOR OUR PROCESSES MR DUGGAN SAID NEVERTHELESS REP LYNN SCHENK FAULTED THE COMMISSION FOR PREMATURELY BUILDING UP THE PUBLIC'S HOPE FOR LOWER CABLE BILLS I DON'T THINK THE FCC DID A GOOD JOB COMMUNICATING WITH THE PUBLIC ON THIS ONE THE CALIFORNIA DEMOCRAT SAID IT WAS LIKELY SHE ADDED THAT COMMISSION MEMBERS KNEW WEEKS AGO THAT THEY LACKED THE RESOURCES TO PROCESS COMPLAINTS FROM CONSUMERS AND OTHER PAPERWORK FROM LOCAL FRANCHISING AUTHORITIES AND CABLE OPERATORS 9306180149 930618 WHO'S NEWS AMERICAN GENERAL CORP AMERICAN GENERAL CORP HOUSTON ROBERT D WOMACK 50 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT SYSTEMS AND CONSULTING A NEWLY CREATED POSITION AT THIS INSURANCE COMPANY MR WOMACK WAS FORMERLY SENIOR VICE PRESIDENT ADMINISTRATION AT AMERICAN GENERAL LIFE & ACCIDENT INSURANCE CO THE COMPANY'S LIFE INSURANCE SUBSIDIARY 9306180148 930618 EXOFFICIAL PLEADS GUILTY IN HUD INFLUENCE SCANDAL WASHINGTON THOMAS DEMERY A FORMER ASSISTANT HOUSING SECRETARY PLEADED GUILTY TO ACCEPTING AN ILLEGAL GRATUITY AND OBSTRUCTING JUSTICE IN CONNECTION WITH THE 1980S INFLUENCEPEDDLING SCANDAL AT THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT BY HIS PLEA MR DEMERY ADMITTED THAT HE SOLICITED AND RECEIVED 100000 IN THE FORM OF A LOAN WITH UNUSUALLY FAVORABLE TERMS FROM MICHIGAN DEVELOPER IRVING SELIGMAN BEGINNING IN 1986 MR DEMERY HELPED STEER 15 MILLION IN FEDERAL SUBSIDIES TO MR SELIGMAN'S PROJECTS IN ADDITION MR DEMERY ADMITTED TO OBSTRUCTING AN INVESTIGATION BY SUBMITTING TO A FEDERAL GRAND JURY DOCUMENTS THAT FALSELY SHOWED HE HAD PAID FOR THE USE OF A VACATION CONDOMINIUM OWNED BY ANOTHER DEVELOPER WHO DID BUSINESS BEFORE HUD PHILIP WINN BEGINNING IN 1987 MR DEMERY HELPED DIRECT MORE THAN 35 MILLION IN FUNDS TO AUTHORITIES FOR AREAS IN WHICH THE DEVELOPER HAD FINANCIAL INTERESTS IN HOUSING PROJECTS MR DEMERY HAD BEEN SCHEDULED TO GO TO TRIAL SOON ON THESE AND OTHER CHARGES INCLUDING CONSPIRACY AND CONFLICT OF INTEREST AS A RESULT OF THE PLEA THE REMAINING CHARGES WILL BE DISMISSED SPECIAL PROSECUTOR ARLIN ADAMS SAID THE PLEA REPRESENTED ANOTHER MAJOR STEP FORWARD IN THE INVESTIGATION WHICH SO FAR HAS RESULTED IN 10 CONVICTIONS AND MORE THAN 2 MILLION IN FINES MR DEMERY HAS AGREED TO COOPERATE WITH THE PROBE 9306180147 930618 WHAT'S NEWS WORLDWIDE SIX PEACEKEEPERS DIED AND 43 WERE WOUNDED IN SOMALI GUNBATTLES ONE PAKISTANI AND FIVE MOROCCAN SOLDIERS WERE KILLED IN MOGADISHU INCLUDING THE SENIOR OFFICER IN THE MOROCCAN UNIT A UN OFFICIAL SAID THOSE WOUNDED IN STREET BATTLES INCLUDED 36 MOROCCANS THREE FRENCHMEN THREE PAKISTANIS AND ONE AMERICAN THERE WERE NO IMMEDIATE FIGURES AVAILABLE ON SOMALI CASUALTIES EARLIER UN TROOPS ATTACKED AND SEIZED CLAN LEADER AIDID'S STRONGHOLD AND ORDERED HIS ARREST HE WAS REPORTED TO BE HOLED UP IN A HOSPITAL AIDID'S FORCES USED CIVILIANS AS SHIELDS DURING THE FIGHTING THE UN SAID CLINTON CLAIMED THE UN MILITARY ASSAULT CRIPPLED THE FORCES OF AIDID THE PRESIDENT SAID THE UN ACTION WAS OVER AND IT WAS A SUCCESS MEDIATORS CONCEDED THAT THE VANCEOWEN PLAN FOR BOSNIA WAS DEAD IN A STUNNING TURNABOUT INTERNATIONAL MEDIATORS URGED BOSNIA'S MUSLIMLED GOVERNMENT TO ACKNOWLEDGE ITS UNDERDOG POSITION AND ACCEPT SERBCROAT PROPOSALS TO DIVIDE BOSNIA INTO THREE ETHNIC ZONES CLINTON LAST NIGHT SAID THE US WOULDN'T STAND IN THE WAY OF THE PROPOSALS THE NEW PLAN WOULD SIGNAL AN END TO THE VANCEOWEN INITIATIVE THAT DIVIDED BOSNIA INTO 10 ETHNIC AREAS SERBS HAD REFUSED TO SIGN THAT PLAN BECAUSE IT WOULD HAVE FAILED TO GIVE THEM A WAY OF LINKING THE TERRITORY THEY HAD WON EC MEDIATOR OWEN SAID HE WAS RELUCTANT TO DROP THE PLAN HE CHAMPIONED BUT I AM A REALIST AND WE HAVE TO LIVE WITH WHAT HAS HAPPENED ON THE GROUND CLINTON DELIVERED A SPIRITED DEFENSE OF HIS FIRST FIVE MONTHS IN OFFICE AND OFFERED AN AMBITIOUS AGENDA FOR THE REST OF THE YEAR AT HIS FIRST EVENING NEWS CONFERENCE THE PRESIDENT HIGHLIGHTED HIS RECENT SPURT OF SUCCESSES IN CONGRESS THE HOUSE PASSED A 25 BILLION AID PACKAGE FOR RUSSIA AND OTHER EXSOVIET REPUBLICS IN A RARE BIPARTISAN VICTORY FOR THE CLINTON ADMINISTRATION BY A 289140 MARGIN THE CHAMBER'S LEADERSHIP BEAT BACK AN EFFORT TO STRIP 16 BILLION FROM THE INITIATIVE WHICH NOW GOES TO THE SENATE AS PART OF A FOREIGNAID BILL RUSSIA AND UKRAINE AGREED TO DIVIDE THE FORMER SOVIET BLACK SEA FLEET INTO SEPARATE NAVIES BUT MANY ISSUES WERE LEFT UNRESOLVED RUSSIA'S YELTSIN AND UKRAINE'S KRAVCHUK ALSO SAID THEY AGREED TO SHARE THE NAVAL PORTS AT SEVASTOPOL AND OTHER HARBORS IN UKRAINE UKRAINIAN LAWMAKERS BOWED TO DEMANDS OF STRIKING MINERS AND VOTED TO HOLD A SEPT 26 NATIONAL VOTE OF CONFIDENCE IN BOTH PRESIDENT KRAVCHUK AND THE PARLIAMENT IN MOSCOW MEANWHILE YELTSIN CLINCHED A POWERSHARING PACT WITH REPUBLICS AND REGIONS HIS TOP LEGAL AIDE SAID PRESIDENT CLINTON PUSHED CONGRESS TO APPROVE TWO COSTLY SCIENCE PROJECTS A SPACE STATION FOR RESEARCH IN ZERO GRAVITY AND A PARTICLE ACCELERATOR FOR RESEARCH ABOUT MATTER AND ENERGY CLINTON DESCRIBED THE SPACE STATION AS A REDUCEDCOST VERSION THE SUPERCONDUCTING SUPERCOLLIDER IS BEING BUILT IN TEXAS JAPANESE OPPOSITION PARTIES APPEARED TO HAVE ENOUGH VOTES TO PASS A NOCONFIDENCE MOTION AGAINST PRIME MINISTER MIYAZAWA AND FORCE ELECTIONS THAT COULD UPSET HIS PARTY'S 38YEAR DOMINANCE IN JAPAN THE MOTION PRECIPITATED BY MIYAZAWA'S FAILURE TO PUSH THROUGH POLITICAL REFORMS IS SCHEDULED FOR A VOTE TODAY MEDICAL RESEARCHERS SAID THE DEADLY RESPIRATORY VIRUS THAT HAS INVADED THE SOUTHWEST US SO FAR AFFLICTING 26 PEOPLE AND KILLING 16 IS PART OF A LITTLEKNOWN WORLDWIDE FAMILY OF RODENTBORNE VIRUSES THE VIRUS FIRST HIT THE NAVAJO COMMUNITY BUT HAS EXPANDED TO AFFLICT ANGLO AND HISPANIC VICTIMS IN THE REGION THE SENATE VOTED TO OVERHAUL FINANCING OF CONGRESSIONAL CAMPAIGNS AND LESSEN SPECIALINTEREST INFLUENCE BY BANNING CONTRIBUTIONS FROM POLITICAL ACTION COMMITTEES THE 6038 VOTE SENT THE BILL TO THE HOUSE WHERE SOME SENATE PROVISIONS INCLUDING THE PAC BAN AND LIMITED USE OF PUBLIC FINANCING FACED OPPOSITION THE NATION'S CATHOLIC BISHOPS SET UP A COMMITTEE TO ADDRESS THE PROBLEM OF CLERGY SEXUAL ABUSE THE COMMITTEE WAS CHARGED WITH MAKING RECOMMENDATIONS ON WHAT THE CHURCH CAN DO TO HELP VICTIMS AND THEIR FAMILIES THE PANEL ALSO WILL ASSESS THE RISKS OF REASSIGNING ABUSIVE PRIESTS ONCE THEY'VE BEEN TREATED TO OTHER DUTIES IN THE CHURCH 9306180146 930618 BUSH INDUSTRIES' SECOND PERIOD JAMESTOWN NY BUSH INDUSTRIES INC SAID IT EXPECTS EARNINGS FOR THE SECOND QUARTER ENDING JULY 3 TO EXCEED 25 CENTS A SHARE ON SALES OF ABOUT 38 MILLION AND FULLYEAR RESULTS TO BE SUBSTANTIALLY BETTER THAN 1992 IN THE SECOND QUARTER OF 1992 THE COMPANY EARNED NINE CENTS A SHARE ON SALES OF 27 MILLION FOR 1992 IT REPORTED EARNINGS OF 60 CENTS A SHARE AND SALES OF 128 MILLION 9306180145 930618 FINANCING BUSINESS ALBERTA NATURAL GAS CO ALBERTA NATURAL GAS CO CALGARY ALBERTA SAID IT PLANS A 100 MILLION CANADIAN DOLLAR 782 MILLION ISSUE OF UNSECURED DEBENTURES TO BE OFFERED THROUGH A SYNDICATE OF CANADIAN UNDERWRITERS THE GAS PIPELINE COMPANY SAID TERMS OF THE OFFERING HAVEN'T BEEN DETERMINED THE COMPANY SAID IT PLANS TO USE THE PROCEEDS TO FUND EXPANSION OF ITS PIPELINE SYSTEM IN BRITISH COLUMBIA NESBITT THOMSON INC RBC DOMINION SECURITIES INC AND SCOTIA MCLEOD INC HAVE AGREED TO UNDERWRITE THE ISSUE ALBERTA NATURAL GAS SAID 9306180144 930618 FINANCING BUSINESS JEAN PHILLIPE FRAGRANCES INC JEAN PHILLIPE FRAGRANCES INC NEW YORK SAID IT RAISED ABOUT 76 MILLION FROM A RECENTLY COMPLETED PRIVATE PLACEMENT OF 550000 COMMON SHARES AT AN AVERAGE PRICE OF 15 EACH THE COMPANY SAID PHILIPPE BENACIN SENIOR VICE PRESIDENT AND COFOUNDER OF THE FRAGRANCE AND COSMETIC CONCERN ALSO SOLD ABOUT 450000 OF HIS OWN SHARES AS PART OF THE TRANSACTION PROCEEDS FROM THE SALE WILL BE USED FOR POSSIBLE ACQUISITIONS AND GENERAL CORPORATE PURPOSES THE COMPANY SAID 9306180143 930618 INDIA'S POLITICAL ECONOMIC STABILITY FACES THREAT FROM PAYOFF ALLEGATIONS BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI INDIAN BUSINESSMEN AND ANALYSTS FEAR THAT EVEN IF PRIME MINISTER PV NARASIMHA RAO SUCCEEDS IN DISPELLING ALLEGATIONS THAT HE ACCEPTED AN ILLEGAL CAMPAIGN CONTRIBUTION HIS GOVERNMENT SEEMS HEADED FOR A BATTLE FOR SURVIVAL THAT COULD CLOUD THE NATION'S BUSINESS CLIMATE AT THE SAME TIME HOWEVER MANY BELIEVE THAT MR RAO'S AMBITIOUS ECONOMICREFORM PROGRAM INITIATED SOON AFTER HE BECAME PRIME MINISTER IN JUNE 1991 IS UNLIKELY TO BE STALLED EVEN THOUGH THERE MAY BE UNCERTAINTY ABOUT HIS OWN FUTURE EITHER WAY WHETHER THERE IS A CHANGE AT THE TOP OR NOT WE'RE HEADING FOR A PROCESS OF POLITICAL INSTABILITY SAYS UDAY KOTAK OF KOTAK MAHINDRA FINANCE LTD A MERCHANT BANKING AND FINANCE COMPANY IN BOMBAY THIS EPISODE WILL HAVE AN IMPACT ON THE POLITICAL SITUATION AND THEREFORE ON THE BUSINESS CLIMATE TARUN DAS DIRECTOR GENERAL OF THE CONFEDERATION OF INDIAN INDUSTRIES A LEADING INDUSTRIAL TRADE GROUP SAYS HOWEVER I DON'T SEE THE ECONOMICREFORM MOVEMENT BEING DAMAGED I SEE THAT PROCESS AS CONTINUING MR DAS REASONS THAT THIS IS BECAUSE REFORM HAS LED TO A LESS HANDSON ROLE FOR THE GOVERNMENT MR RAO'S GOVERNMENT WAS BADLY SHAKEN ON WEDNESDAY WHEN BOMBAY STOCKBROKER HARSHAD MEHTA WHO IS ONE OF THE MAIN FIGURES ACCUSED IN INDIA'S 128 BILLION SECURITIES SCANDAL ALLEGED AT A CROWDED NEWS CONFERENCE THAT HE HAD PERSONALLY DELIVERED 10 MILLION RUPEES 320400 TO THE PRIME MINISTER A FEW DAYS BEFORE MR RAO WON ELECTION TO PARLIAMENT IN NOVEMBER 1991 MR RAO IMMEDIATELY DENIED MR MEHTA'S ALLEGATION AND WHILE THE RULING CONGRESS PARTY HAS RALLIED ROUND HIM PUTTING OFF THE POSSIBILITY OF ANY IMMEDIATE THREAT TO HIS POSITION OPPOSITION PARTIES HAVE CALLED FOR HIS RESIGNATION IT ISN'T A CALL THE OPPOSITION IS LIKELY TO BE ABLE TO ENFORCE THROUGH A PARLIAMENTARY NOCONFIDENCE MOTION A CONFRONTATION ON A SENSITIVE ISSUE SUCH AS POLITICAL CORRUPTION HOWEVER HAS THE POTENTIAL TO DIVERT THE GOVERNMENT'S ATTENTION AWAY FROM ECONOMIC MATTERS TO SURVIVAL MANY ANALYSTS SAY THE MEHTA EPISODE HAS ERODED THE MORAL AND POLITICAL AUTHORITY OF THE PRIME MINISTER A VIEW REFLECTED IN SEVERAL NEWSPAPER EDITORIALS THERE CAN BE NO QUESTION THAT THE ALLEGATIONS WILL DENT MR RAO'S CREDIBILITY AND SENSE OF POPULAR LEGITIMACY SAID THE COUNTRY'S LEADING BUSINESS DAILY THE ECONOMIC TIMES BUT IT WOULD BE RASH TO JUMP TO THE CONCLUSION THAT HE IS FINISHED POLITICALLY BUSINESSMEN TEND TO AGREE THAT MR RAO'S OWN POSITION ISN'T THREATENED UNLESS MR MEHTA IS ABLE TO PROVIDE EVIDENCE THAT GIVES HIS ALLEGATION GREATER CREDIBILITY THAN MR RAO'S DENIAL YET THEY'RE HOPING THAT MR RAO WILL DO MORE TO REASSERT HIS AUTHORITY MUCH WILL DEPEND ON THE REACTION OF THE GOVERNMENT SAYS DHRUV SAWHNEY CHIEF EXECUTIVE OFFICER OF TRIVENI ENGINEERING WORKS LTD BUSINESS THRIVES ON STABILITY AND IF THE GOVERNMENT REACTS FORCEFULLY AND UNITEDLY THEN IT WON'T AFFECT THINGS THE WORST WILL BE LINGERING UNCERTAINTY ANALYSTS POINT OUT THAT THE INDIAN ECONOMY CURRENTLY SEEMS TO BE REVIVING AFTER A TWOYEARLONG SLOWDOWN THE GROWTH RATE CLIMBED TO MORE THAN 4 IN THE YEAR ENDED MARCH 31 AND IS EXPECTED TO BE 6 THIS YEAR INFLATION IS ABOUT 6 EXPORTS AND INDUSTRIAL PRODUCTION ARE CLIMBING WHILE BOTH THE RUPEE AND FOREIGNEXCHANGE RESERVES ARE STRONG THE FUNDAMENTALS ARE GOOD AND WE'LL SURVIVE THESE ALLEGATIONS IF IT DOESN'T GET OUT OF HAND SAYS SL RAO DIRECTOR GENERAL OF THE NATIONAL COUNCIL OF APPLIED ECONOMIC RESEARCH A THINK TANK IF THIS UNCERTAINTY CONTINUES FOR TOO LONG IT'LL WEAKEN THE PRIME MINISTER'S AUTHORITY AND WE CAN'T AFFORD THAT THE BOMBAY STOCK MARKET HAS REACTED TO MR MEHTA'S ALLEGATIONS BY LOSING GROUND OBLIGING THE AUTHORITIES TO IMPOSE RESTRAINTS ON SOME MARKET ACTIVITIES THE BOMBAY SENSITIVE INDEX ON THURSDAY FELL TO 223438 DOWN 5727 POINTS OR 25 WE EXPECT PRICES WILL STABILIZE AT THIS LEVEL AND THERE IS NO CAUSE FOR PANIC SAYS MR MAYYA EXECUTIVE DIRECTOR OF THE BOMBAY STOCK EXCHANGE THE LATEST DECLINE FOLLOWS A STEEPER DROP EARLIER IN THE WEEK IN ANTICIPATION OF MR MEHTA'S DISCLOSURES ONCE HE ANNOUNCED HE WOULD BE HOLDING A BAREALL NEWS CONFERENCE 9306180142 930618 KLOECKNERWERKE EXPECTS LOSS DUISBERG GERMANY GERMAN STEEL AND ENGINEERING COMPANY KLOECKNERWERKE AG WILL POST A GROUP LOSS FOR ITS FISCAL YEAR ENDING SEPT 30 SAID CHAIRMAN HANS CHRISTOPH VON ROHR DURING THE ANNUAL MEETING OF SHAREHOLDERS MR VON ROHR ALSO SAID KLOECKNERWERKE'S SALES DECLINED 53 FOR THE FIRST SIX MONTHS TO 337 BILLION MARKS 203 BILLION FROM 356 BILLION MARKS A YEAR EARLIER ALTHOUGH MR VON ROHR DIDN'T PROVIDE FIGURES FOR THE GROUP LOSS FOR THE FIRST SIX MONTHS HE SAID THE RESULT WAS DEEPLY IN THE RED 9306180141 930618 SANDOZ NAMES BREU TO SUCCEED BISCHOFF AS CHIEF OF FINANCES ZURICH SWITZERLAND SANDOZ AG APPOINTED RAYMOND BREU AS CHIEF FINANCIAL OFFICER AND MEMBER OF THE EXECUTIVE BOARD TO SUCCEED VICTOR BISCHOFF WHO LEFT THE COMPANY UNEXPECTEDLY THIS WEEK MR BREU 48 YEARS OLD IS AN OLD HAND AT SANDOZ HAVING JOINED THE TREASURY DEPARTMENT IN 1975 AND SUBSEQUENTLY HELD SEVERAL MAJOR FINANCE POSITIONS WITHIN THE SANDOZ ORGANIZATION THE LAST AS GROUP TREASURER THE DEPARTURE OF MR BISCHOFF FOLLOWED THAT OF MAX LINK EARLIER THIS YEAR MR LINK HEADED SANDOZ'S PHARMACEUTICAL DIVISION THE EXODUS OF TWO TOP MANAGERS IN SUCH A SHORT TIME LED TO MARKET SPECULATION THAT ALL WAS NOT WELL AT SANDOZ HOWEVER A SOURCE CLOSE TO SANDOZ SAID YESTERDAY THAT THERE WAS NO CONNECTION BETWEEN THE DEPARTURE OF MR LINK WHO GOES TO ANOTHER DRUG COMPANY AND MR BISCHOFF HE SAID THAT INTERNALLY IT HAD BEEN KNOWN FOR SOME TIME THAT MR BISCHOFF'S DEPARTURE WAS IMMINENT AND THE FINAL DECISION WAS MADE AT THE HIGHEST LEVEL OF THE BOARD OF DIRECTORS MR BISCHOFF REFUSED TO COMMENT SAYING THAT HE WAS ENJOING HIS FREEDOM AND WOULD TAKE TIME IN DECIDING A FUTURE JOB A SANDOZ EXECUTIVE INSISTED THAT THE FLEXIBILITY TO MAKE CHANGES AT THE TOP LEVEL OF MANAGEMENT WAS A HEALTHY SIGN WHICH ALLOWED THE COMPANY TO REJUVENATE AT SANDOZ HE ADDED WE DON'T DISLIKE CHANGE AND WE HAVE THE ABILITY TO COPE WITH IT SANDOZ' LONGTIME AND AUTHORITARIAN CHIEF EXECUTIVE OFFICER MARC MORET 69 YEARS OLD WILL GIVE UP DAILY RUNNING OF THE COMPANY FROM JULY 1 HOWEVER MR MORET WILL REMAIN CHAIRMAN AND IS EXPECTED TO KEEP A FIRM HAND ON THE COMPANY DANIEL C WAGNIERE FORMER HEAD OF THE US BRANCH OF SANDOZ WILL SUCCEED MR MORET MR LINK'S REPONSIBILITIES WILL BE TAKEN OVER BY URS BAERLOCHER A RECENT MEMBER OF THE EXECUTIVE BOARD WHO WILL HEAD SANDOZ' LIFE SCIENCES DIVISION 9306180140 930618 SENATE CLEARS CAMPAIGN FINANCE BILL THAT LIMITS SPENDING PAC DONATIONS BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE HEEDING PRESSURE TO REFORM THE POLITICAL PROCESS APPROVED LEGISLATION DESIGNED TO LIMIT CAMPAIGN SPENDING CURB THE INFLUENCE OF LOBBYISTS AND INTEREST GROUPS AND MAKE ELECTIONS MORE COMPETITIVE THE 6038 VOTE SENDS THE HIGHLY CONTENTIOUS CAMPAIGN FINANCE ISSUE TO THE HOUSE FOR CONSIDERATION LATER THIS YEAR THOUGH THE BILL'S PROSPECTS REMAIN FAR FROM CLEAR THE RESULT REPRESENTED A SIGNIFICANT VICTORY FOR PRESIDENT CLINTON WHO HAS MADE CAMPAIGN REFORM A TOP POLITICAL PRIORITY IT WILL HELP TO RESTORE THE AMERICAN PEOPLE'S CONFIDENCE IN THIS INSTITUTION AND OUR SYSTEM OF GOVERNMENT SAID SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE EVERY AMERICAN KNOWS THAT AMERICAN POLITICAL CAMPAIGNS ARE TOO LONG AND TOO EXPENSIVE THIS LEGISLATION FOR THE FIRST TIME WILL DO SOMETHING ABOUT THAT REPUBLICANS COMPLAINED THAT THE BILL'S PROVISIONS WERE SLANTED TO SERVE THE INTERESTS OF DEMOCRATS AND THAT THEY WOULD RESTRICT FREE SPEECH THIS IS NOT THE END OF THIS ISSUE CAUTIONED SEN MITCH MCCONNELL R KY A LEADING REPUBLICAN OPPONENT OF THE BILL WHO PREDICTED THAT THE PARTISAN ARGUMENTS ULTIMATELY WILL BE RESOLVED BY THE SUPREME COURT NONETHELESS A COMPROMISE STRIPPING MOST PUBLIC FINANCING FROM THE BILL DREW ENOUGH SUPPORT FROM MODERATE REPUBLICANS TO BREAK A GOP FILIBUSTER SEVEN REPUBLICANS JOHN CHAFEE OF RHODE ISLAND WILLIAM COHEN OF MAINE DAVID DURENBERGER OF MINNESOTA JAMES JEFFORDS OF VERMONT NANCY KASSEBAUM OF KANSAS JOHN MCCAIN OF ARIZONA AND LARRY PRESSLER OF SOUTH DAKOTA JOINED 53 DEMOCRATS IN VOTING FOR FINAL PASSAGE THE THREE DEMOCRATIC DEFECTORS WERE RICHARD SHELBY AND HOWELL HEFLIN OF ALABAMA AND ERNEST HOLLINGS OF SOUTH CAROLINA THE CENTERPIECE OF THE LEGISLATION IS THE ESTABLISHMENT OF VOLUNTARY SPENDING LIMITS FOR SENATE CAMPAIGNS THE LIMITS WOULD VARY FROM 2 MILLION TO 8250000 DEPENDING ON THE SIZE OF THE STATE FIGURES COMPILED BY COMMON CAUSE THE PUBLICINTEREST LOBBY SHOW THAT THE LIMITS WOULD SUBSTANTIALLY CURB THE FUNDRAISING ADVANTAGES ENJOYED BY INCUMBENTS APPLIED TO THE 1992 SENATE ELECTIONS FOR EXAMPLE THE LIMITS WOULD HAVE REDUCED INCUMBENT SPENDING BY 37 MILLION OR ABOUT ONETHIRD WHILE TRIMMING CHALLENGER SPENDING BY LESS THAN 1 MILLION CANDIDATES COULD EXCEED THE SPENDING LIMITS UNDER THE BILL BUT THEY WOULD FACE A STIFF PENALTY FOR DOING SO A TAX OF ABOUT 30 ON THEIR CAMPAIGN RECEIPTS REVENUES FROM THE TAX WOULD BE USED TO SUBSIDIZE THEIR OPPONENTS' CAMPAIGNS THAT SCHEME REPLACED THE CLINTONBACKED PROVISION TO PROVIDE DIRECT PUBLIC FINANCING TO ALL CANDIDATES WHO COMPLY WITH THE LIMITS THE SENATE BILL THOUGH WOULD ENTITLE COMPLYING CANDIDATES TO DEEP DISCOUNTS ON TELEVISION ADVERTISING AND POSTAGE TO CURB THE INFLUENCE OF SPECIAL INTERESTS THE BILL WOULD PROHIBIT POLITICAL PARTIES FROM USING SOCALLED SOFT MONEY CONTRIBUTIONS NOT REGULATED BY FEDERAL LAW IN CONNECTION WITH HOUSE SENATE OR PRESIDENTIAL ELECTIONS IT WOULD PROHIBIT LOBBYISTS FROM CONTRIBUTING TO ANY LEGISLATOR THEY HAVE LOBBIED IN THE PRECEDING YEAR AND IT WOULD BAN CONTRIBUTIONS FROM POLITICAL ACTION COMMITTEES OR IF COURTS RULE THAT UNCONSTITUTIONAL ALLOW A PAC TO CONTRIBUTE ONLY AS MUCH AS 1000 PER LAWMAKER TOTAL PAC CONTRIBUTIONS TO ANY SENATE CAMPAIGN COULDN'T EXCEED 20 OF THE OVERALL SPENDING LIMIT THE PAC PROVISIONS STRONGLY OPPOSED BY HOUSE DEMOCRATS AND THEIR SUPPORTERS IN ORGANIZED LABOR ARE CERTAIN TO BE CHANGED IN THE HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO ALSO CAUTIONED THAT THE HOUSE WON'T APPROVE THE SENATE'S BAN ON BUNDLING OF CAMPAIGN CONTRIBUTIONS WHICH HAS ALLOWED GROUPS TO AGGREGATE CONTRIBUTIONS FROM INDIVIDUALS TO BOOST THE ELECTION OF DEMOCRATIC WOMAN CANDIDATES HOUSE SPEAKER THOMAS FOLEY D WASH INDICATED THE HOUSE WON'T TAKE UP THE LEGISLATION UNTIL AFTER THE AUGUST RECESS AND HOUSE CONSIDERATION WOULD BE FOLLOWED BY DIFFICULT CONFERENCE COMMITTEE NEGOTIATIONS NO ONE WILL KNOW UNTIL WE SEE THE CONFERENCE REPORT WHETHER WE HAVE A BILL THAT SHOULD BE SIGNED SAID COMMON CAUSE PRESIDENT FRED WERTHEIMER A PROMINENT ADVOCATE OF CAMPAIGNFINANCE CHANGES BUT HE ADDED OVERALL WE MADE A MAJOR STEP FORWARD TODAY 9306180139 930618 BUSINESS BRIEF FIRST UNION CORP US JUDGE CLEARS PURCHASE OF FIRST AMERICAN METRO FIRST UNION CORP A CHARLOTTE NC HOLDING COMPANY MOVED A STEP CLOSER TO SECURING APPROVAL TO ACQUIRE FIRST AMERICAN METRO CORP FOR 453 MILLION US DISTRICT JUDGE JOYCE HENS GREEN WHO TOOK CONTROL OF FIRST AMERICAN'S ASSETS IN JUNE 1992 CLEARED THE TRANSACTION YESTERDAY FIRST AMERICAN WAS OWNED BY THE BANK OF CREDIT & COMMERCE INTERNATIONAL WHICH LAST YEAR FORFEITED ITS FIRST AMERICAN ASSETS TO A US COURT AT THAT TIME JUDGE GREEN INSTRUCTED A FEDERAL TRUSTEE TO SELL THE BANK WITHIN A YEAR IN ITS ACQUISITION EFFORTS FIRST UNION FACES THE WASHINGTON CITY COUNCIL WHICH SAID IT SHOULD HAVE A SAY IN APPROVING THE TRANSACTION FIRST UNION ARGUED THE CONTRARY AND YESTERDAY FILED A SUIT IN US DISTRICT COURT IN WASHINGTON TO PREVENT FURTHER DELAYS 9306180138 930618 PLAN TO DIVIDE BOSNIA INTO THREE ZONES GETS CONDITIONAL SUPPORT FROM CLINTON BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A SERBIAN AND CROATIAN PLAN TO PARTITION BOSNIA INTO THREE SEPARATE ETHNIC ZONES WON THE BACKING OF INTERNATIONAL MEDIATORS AND THE CONDITIONAL ACCEPTANCE OF PRESIDENT CLINTON IF THE PARTIES THEMSELVES INCLUDING THE BOSNIAN GOVERNMENT AGREE GENUINELY AND HONESTLY AGREE TO A DIFFERENT SOLUTION THEN THE UNITED STATES WOULD HAVE TO LOOK AT IT VERY SERIOUSLY THE PRESIDENT TOLD A WHITE HOUSE NEWS CONFERENCE LAST NIGHT BOSNIA'S MUSLIMS THE CLEAR UNDERDOG IN THE FIGHT MEANWHILE SENT OUT MIXED SIGNALS AFTER REJECTING THE PLAN BOSNIA'S MUSLIM PRESIDENT ALIJA IZETBEGOVIC INDICATED HE WOULD BE WILLING TO RETURN TO THE BARGAINING TABLE NEXT WEEK TO DISCUSS IT WHILE STILL INSISTING THAT SOME FORM OF CENTRAL GOVERNMENT BE MAINTAINED THE IDEA OF PARTITION EMERGED THIS WEEK DURING INTERNATIONALLY MEDIATED PEACE TALKS IN GENEVA INTERNATIONAL MEDIATOR LORD DAVID OWEN WHO URGED THE MUSLIMS TO ACCEPT THE PARTITION SAID IT WOULDN'T BRING A LOT OF HONOR BUT I AM A REALIST AND WE HAVE TO LIVE WITH WHAT HAS HAPPENED ON THE GROUND UNTIL NOW THE US AND THE INTERNATIONAL COMMUNITY HAVE INSISTED THAT BOSNIA'S BORDERS AND MULTIETHNIC IDENTITY HAD TO BE MAINTAINED OTHERWISE IT WOULD SEND A DESTABILIZING MESSAGE THROUGHOUT THE WORLD BUT NEITHER THE US NOR ITS ALLIES HAS BEEN WILLING TO BACK THAT PRINCIPLE WITH REAL MILITARY MIGHT WHETHER A SETTLEMENT CAN NOW BE REACHED AND THE FIGHTING BROUGHT TO AN END IS STILL FAR FROM CERTAIN IF A PARTITION IS TO WORK THE BITTER ENEMIES WOULD HAVE TO AGREE TO A MAP AND BORDERS AND EVEN THEN SERBIAN AND CROATIAN FORCES WOULD PROBABLY MOVE TO LINK UP WITH THEIR ETHNIC BRETHREN CREATING A GREATER SERBIA AND A GREATER CROATIA WITH A TINY RUMP STATE OF BOSNIA SANDWICHED IN BETWEEN CURRENTLY THE MUSLIMS CONTROL ABOUT 10 OF THE TERRITORY OF BOSNIA IN TWO WIDELY SEPARATED REGIONS SUCH A TINY AND DIVIDED STATE WOULD ALMOST INEVITABLY BE DOMINATED IF NOT SWALLOWED UP BY ITS FAR LARGER NEIGHBORS 9306180137 930618 OWENSCORNING PLANS PURCHASE TOLEDO OHIO OWENSCORNING FIBERGLAS CORP SAID IT WILL BUY VERA AS A UNIT OF THE NORWEGIAN COMPANY JOTUN AS THAT MAKES GLASS REINFORCED WATER AND SEWER PIPES THE PURCHASE PRICE IS LESS THAN 15 MILLION A COMPANY OFFICIAL SAID OWENSCORNING SAID IT WILL MERGE VERA INTO ANOTHER OPERATION TO FORM A VENTURE WITH EXPECTED ANNUAL SALES OF 15 MILLION 9306180136 930618 LETTERS TO THE EDITOR CHALETS MUST CONFORM TO NATURE'S WAY THERE WERE TWO FUNDAMENTAL PROBLEMS WITH NATHAN EDELSON'S MAY 26 EDITORIAL PAGE PIECE PARKS WITHOUT PEOPLE ON THE CLOSING OF TWO CHALETS IN GLACIER NATIONAL PARK 1 SCRAMBLED FACTS AND 2 GROSS STEREOTYPING OF CONSERVATIONISTS INCLUDING THE WILDERNESS SOCIETY MR EDELSON SAID THAT WE ARE DETERMINED TO SHUT DOWN THE CHALETS THAT'S WRONG THEY ARE ATTRACTIVE AND DISTINCTIVE AND THEY SHOULD BE KEPT OPEN IF 1 THERE ARE ENOUGH PEOPLE WILLING TO PAY THE COST OF RUNNING THEM AND 2 THEY COMPLY WITH ENVIRONMENTAL LAWS BUT THE CHALETS AS OPERATED DAMAGE THE ENVIRONMENT THE STATE OF MONTANA HAS TOLD THE PARK SERVICE THAT THE CHALETS' SEWAGE DISPOSAL VIOLATES THE CLEAN WATER ACT CLEAN UP THE MESS OR CLOSE DOWN THE CHALETS THE STATE SAID IN ADDITION THE HUMAN WASTE IS A POTENTIAL LURE FOR GRIZZLY BEARS CREATING A THREAT TO BOTH THEM AND HUMANS FOR MORE THAN A YEAR WE HAVE BEEN URGING THE PARK SERVICE TO DO AN ENVIRONMENTAL REVIEW TO DETERMINE WHAT NEEDED TO BE DONE BUT ONLY LAST MONTH DID THE AGENCY ACT MR EDELSON IS CONVINCED THAT THE WILDERNESS SOCIETY WANTS TO KEEP PEOPLE OUT OF THE PARKS PARTICULARLY THE BACK COUNTRY YET HE PROVIDES ABSOLUTELY NO EVIDENCE EXCEPT FOR OUR EFFORTS TO HAVE THE CHALETS COMPLY WITH ENVIRONMENTAL LAWS WE ARE DOING NOTHING TO DISCOURAGE SUCH USE OF THE PARKS IN FACT WE HAVE JUST ISSUED A REPORT URGING GREATER FUNDING FOR THE PARKS SO THAT THEY CAN MEET VISITORS' NEEDS THE NEXT TIME MR EDELSON WRITES ABOUT OUR GOALS HE SHOULD AT LEAST CALL US TO GET THE FACTS MR EDELSON'S PIECE PRESENTED A NUMBER OF UNFOUNDED CLAIMS REGARDING THE NATIONAL ENVIRONMENTAL POLICY ACT NEPA PROCESS UNDER WAY AT GLACIER NATIONAL PARK TO PREPARE AN ENVIRONMENTAL ASSESSMENT FOR FUTURE MANAGEMENT OF THE TWO HISTORIC BACK COUNTRY CHALETS IN THE PARK IN FACT THE CHALETS ARE CLOSED AND WILL REMAIN CLOSED UNTIL THE NATIONAL PARK SERVICE CAN CORRECT THREE SETS OF PROBLEMS AT THE CHALETS SEWAGE AND INCREASINGLY STRINGENT CODES DEALING WITH EFFLUENT DISCHARGE SCARCE WATER AND OTHER LIFE SAFETY ISSUES THE ISSUE WE ARE DEALING WITH IS NOT IF THE CHALETS WILL REOPEN BUT RATHER WHEN THEY WILL REOPEN THE CHALET FACILITIES ARE ABOUT 80 YEARS OLD AND HAVE HAD A MINIMUM OF CAPITAL INFUSION TO BRING THEM UP TO CURRENT STANDARDS THE PARK SERVICE IS REQUIRED TO UPHOLD ITS STATUTORY OBLIGATIONS AND RESPONSIBILITIES AND WILL COMPLETE AN ENVIRONMENTAL ASSESSMENT THAT PROVIDES FOR A THOROUGH REVIEW AND ANALYSIS OF ALL VIABLE ALTERNATIVES TO RESOLVE THE VARIOUS ISSUES SOLUTIONS TO THE PROBLEMS DO EXIST BUT CONSTRUCTION DOLLARS WILL HAVE TO BE APPROPRIATED TO CORRECT THEM THE TIMING OF THE DECISION TO TEMPORARILY CLOSE THE CHALETS WAS MADE IN DECEMBER FOR TWO IMPORTANT REASONS FIRST GLACIER'S CONCESSIONS PERMIT FOR THE CHALET OPERATIONS EXPIRED IN DECEMBER AND HAD TO BE EITHER ALLOWED TO LAPSE OR REISSUED SECOND RESERVATIONS FOR THE CHALETS ARE TAKEN AND FILLED BETWEEN EARLY JANUARY AND EARLY FEBRUARY THE PARK SERVICE HAD NO INTENTION OF ALLOWING RESERVATIONS TO BE MADE THAT WOULD LATER HAVE TO BE CANCELED DUE TO CLOSURES THE COMMON ENVIRONMENTALIST THOUGHT THAT HUMANS AND ALL THEIR ACTIVITIES ARE SEPARATE FROM AND THE ANTITHESIS TO NATURE IS EVIDENT FROM MR EDELSON'S ARTICLE THE SIERRA CLUB LEGAL DEFENSE FUND AND THE WILDERNESS SOCIETY'S OSTENSIBLE CONCERN OVER THE SLUDGE FROM THE GRANITE AND SPERRY CHALETS' TOILETS IS NOTHING MORE THAN FEARMONGERING THE TERM TOILET SLUDGE BRINGS TO MIND ALL SORTS OF DISTASTEFUL MENTAL IMAGES TO MAR THE THOUGHT OF THE PRISTINE NATURAL SURROUNDINGS OF GLACIER NATIONAL PARK WHAT MOST PEOPLE SEEM TO FORGET IS THAT EXCRETION IS A NATURAL PROCESS WHETHER YOU ARE REFERRING TO HUMANS GRIZZLY BEARS BIRDS SQUIRRELS INSECTS OR ANY OF THE MILLIONS OF LIVING ORGANISMS IN THE PARK AND THAT THE DECOMPOSITION OF THIS WASTE HAS BEEN HANDLED VERY NICELY FOR MILLIONS OF YEARS WITHOUT THE AID OF A SINGLE LAWYER OR ENVIRONMENTALIST TO STIR IT UP A SEPTIC SYSTEM WHEN PROPERLY DESIGNED AND WITH ONLY A MINIMUM OF MAINTENANCE IS NOTHING MORE THAN AN OPTIMIZED ENVIRONMENT FOR THE NATURAL PROCESS OF WASTE DECOMPOSITION IT IS DISAPPOINTING TO THINK THAT THE GLACIER PARK SUPERINTENDENT AND THE NATIONAL PARK SERVICE APPEAR TO HAVE CAVED IN TO THIS FUROR EITHER BECAUSE OF THE HUMANS ARE NOT PART OF NATURE MISCONCEPTION OR FROM FEAR OF LEGAL ACTION EVEN IN HIS ARTICLE DECRYING THIS SITUATION MR EDELSON SEEMS TO SHOW A DISBELIEF THAT HIKERS RELIEVING THEMSELVES IN THE WOODS CAN BE HANDLED BY NATURE CLOSING THE CHALETS IS AN EGREGIOUS EXAMPLE OF GOVERNMENT TURNING ITS BACK ON AMERICANS WITH DISABILITIES AND IN THIS CONTEXT ANYONE OF EXTREME YOUTH OR ADVANCING AGE OR WITH A BUM KNEE OR OTHER MINOR PHYSICAL ANOMALY WOULD FALL INTO THAT CATEGORY IN SHORT IF A HIKER CANNOT CARRY A 50POUND PACK OF FOOD AND BEDDING FOR DAYS WITHOUT THE CHALETS FOR MEALS AND SHELTER HE IS EFFECTIVELY EXCLUDED FROM THE GLACIER PARK BACK COUNTRY IT IS NOT REASONABLE TO EXPECT A WILDERNESS TRAIL TO BE WHEELCHAIR ACCESSIBLE BUT IT IS VERY REASONABLE TO EXPECT THAT THE CHALETS STAY OPEN TO ACCOMMODATE THE AVERAGE LESSTHANPHYSICALLY PERFECT AMERICAN I HAVE BEEN VISITING GLACIER PARK EVERY FEW YEARS WITH MY FAMILY FIRST MY PARENTS AND NOW MY CHILDREN SINCE I WAS A LITTLE GIRL GLACIER IS SPECIAL BECAUSE ITS MOUNTAIN VISTAS CAN BE EXPERIENCED IN RELATIVELY NATURAL SOLITUDE BY PEOPLE OF AVERAGE OR SOMEWHAT IMPAIRED PHYSICAL CAPABILITIES IT IS FAR ENOUGH NORTH SO THAT THE TREE LINE IS AT AN ACCESSIBLY LOW ALTITUDE FOR SUCCESSFUL ASCENT BY MILDLY DISABLED HIKERS WE TREASURE THE OPPORTUNITY TO SHARE THIS EXTRAORDINARY WILDERNESS EXPERIENCE WITH THE NEXT GENERATION BY FORCING THE CLOSING OF FACILITIES THAT MAKE THE WONDERS OF THE PARK BACK COUNTRY ACCESSIBLE TO VISITORS OTHER THAN THE SUPREMELY ABLE ENVIRONMENTAL ACTIVISTS IMPOSE THEIR ELITIST PHILOSOPHY ON THE REST OF AMERICA IT'S NOT JUST THEIR PARK IT BELONGS TO ALL OF US AND IT IS A PARK TO BE EXPERIENCED AND APPRECIATED BY PEOPLE NOT SEALED OFF FROM ALL BUT A SELECT FEW WHO MEET WITH THE APPROVAL OF THESE SPECIAL INTEREST GROUPS 9306180135 930618 WHO'S NEWS IBM TREASURER RIPP TO LEAVE IN OCTOBER ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP SAID ITS TREASURER ROBERT RIPP 51 YEARS OLD WILL TAKE EARLY RETIREMENT IN OCTOBER IN AN INTERVIEW MR RIPP SAID HE WANTS TO BECOME THE CHIEF EXECUTIVE OFFICER OF A SMALLER COMPANY PROBABLY OUTSIDE THE COMPUTER INDUSTRY MR RIPP'S DECISION FOLLOWS IBM'S APPOINTMENT LAST MONTH OF CHRYSLER CORP EXECUTIVE JEROME YORK AS CHIEF FINANCIAL OFFICER MR RIPP ACKNOWLEDGED THAT HE HAD HOPED TO GET THE IBM CFO JOB GIVEN THAT I'M AT A RELATIVELY YOUNG AGE I DECIDED I WANTED TO TAKE MY SKILLS AND START A SECOND CAREER FOR MYSELF MR RIPP SAID EXECUTIVE RECRUITERS SAY THAT ANOTHER INTERNAL CANDIDATE FOR THE CFO JOB JAMES FORESE VICE PRESIDENT OF FINANCE ALSO HAS BEEN CONSIDERING JOBS OUTSIDE IBM IBM WOULDN'T COMMENT ABOUT MR FORESE 9306180134 930618 WHO'S NEWS FLOW INTERNATIONAL CORP FLOW INTERNATIONAL CORP KENT WASH ARLEN I PRENTICE A PRINCIPAL OF KIBBLE & PRENTICE INC AND RITA A O'BRIEN PRESIDENT OF HO SPORTS WERE ELECTED DIRECTORS OF THIS MAKER OF WATERJET SYSTEMS THEY SUCCEED JAMES R GREGATH AND WILBUR R GREENWOOD WHO RESIGNED FOR UNDISCLOSED REASONS 9306180133 930618 RUSSIA TO SWAP MIG29 JETS WITH HUNGARY TO PAY DEBT BUDAPEST THE GOVERNMENT ENDORSED A LANDMARK 800 MILLION SWAP WITH RUSSIA UNDER WHICH HUNGARY WILL RECEIVE 22 ADVANCED MIG29 JET FIGHTERS IN EXCHANGE FOR WIPING OUT ALMOST HALF OF RUSSIA'S TRADE DEBT WITH HUNGARY THE SWAP IS THE FIRST MILITARY EQUIPMENTFORDEBT DEAL BETWEEN RUSSIA AND A FORMER WARSAW PACT ALLY IT COULD SET A PRECEDENT FOR FURTHER AGREEMENTS THAT WOULD ENABLE CASHPOOR MOSCOW TO KEEP ITS DEFENSE INDUSTRY AFLOAT WHILE PAYING OFF DEBTS RUSSIA OWES HUNGARY A TOTAL OF 17 BILLION BASED ON CALCULATIONS MADE WHEN RUBLE BARTER TRADE CEASED AFTER THE COLLAPSE OF THE SOVIET UNION HUNGARY WILL BE ABLE TO MODERNIZE ITS AGING FLEET OF 130 MIG21S MANY OF THE PLANES ARE ALMOST 20 YEARS OLD AND ALREADY HAVE BEEN GROUNDED THE DEAL INCLUDES A SUPPLY OF SPARE PARTS THE TRAINING OF HUNGARIAN PILOTS IN RUSSIA AND SIX TWOSEAT TRAINING PLANES FIRST DELIVERIES ARE EXPECTED WITHIN A YEAR 9306180132 930618 INTERNATIONAL WORLD ECONOMY RAPID GROWTH OF CHINA'S MIDDLE CLASS STRAINS NATION'S FINANCIAL STRUCTURE BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING THE DOZEN CHILDREN SITTING ATTENTIVELY IN A CROWDED SHOPPING CENTER IN BEIJING ARE SYMBOLS OF CHANGE IN CHINA UNLIKE THE NOTSOOLD DAYS THERE ARE NO MAOIST POLITICS IN COMMAND THEY ARE WATCHING DONALD DUCK CARTOONS IN A SHOP CALLED MICKEY'S CORNER BUT THE YOUNGSTERS ARE ALSO SYMBOLS OF NEW CHINESE PROBLEMS EVEN IF SOMETIMES THOSE PROBLEMS ARISE FROM SUCCESS AS A VISIT TO THE TEEMING XIDAN SHOPPING CENTER INDICATES THE WORLD'S MOST POPULOUS NATION IS RACING TO BECOME ITS BIGGEST CONSUMER SOCIETY AND IT'S GETTING THERE FASTER THAN ITS LEADERS MIGHT WISH OR THAN ITS ECONOMIC STRUCTURE CAN BEAR AT THE MOST THREATENING LEVEL THE RESULTS INCLUDE AN OVERHEATED ECONOMY WITH URBAN INFLATION HEADING TOWARD 20 A YEAR UNLESS CHECKED PRICE RISES COULD ERODE BOTH ECONOMIC GAINS AND PUBLIC CONFIDENCE SIMILAR STRAINS FIVE YEARS AGO HELPED CAUSE THE TIANANMEN VIOLENCE FEW EXPECT THAT TRAGEDY TO BE REPEATED YET THE CHINESE FINANCIAL SYSTEM NEEDS A RADICAL OVERHAUL IF ITS MONEY MANAGERS ARE TO HEAD OFF THE SOCIAL UPHEAVALS THAT RAMPANT INFLATION CAN BRING BUT BACK AT THE MICKEY MOUSE LEVEL THERE IS A LESSER IF RELATED PROBLEM CHINA SUDDENLY HAS A GLOBAL TRADE DEFICIT AND OFFICIALS ARE WORRIED THE DISNEY ITEMS PEDDLED HERE INDICATE WHAT'S HAPPENING IN THIS FIVEFLOOR SHOPPING CENTER CUSTOMERS FACE AN ARRAY OF DOMESTIC AND FOREIGN BUT MOSTLY CHINAMADE GOODS THESE RANGE FROM FLYING PIGEON BICYCLES TO BENETTON SWEATERS FROM WILD GOAT WASHING MACHINES TO SONY TV SETS FROM RED SILK BED COVERS TO MICHAEL JORDAN TSHIRTS DEMAND IS UP MARKETING IS IN AND BUSINESS IS BOOMING EAGER CLERKS OFFER SAMPLES AND OTHERWISE HUSTLE THE GOODS AS THE KIDS WATCH CARTOONS A FIVEPIECE BAND SETS UP BEFORE THE NEARBY CALIFORNIA FRIED CHICKEN AND SINGAPORE NOODLES FAST FOOD RESTAURANTS PLAYING WALTZES TO PUT THEIR PARENTS IN A MELLOW BUYING MOOD AND THE MORE THEY SUCCEED THE BIGGER THE TRADE PROBLEMS BECAUSE ALL THOSE GOODS THAT CHINESE CONSUMERS BUY WON'T BE SHIPPED ABROAD TO EARN HARD CURRENCY CHINA NEEDS FOR ITS OWN DEVELOPMENT THERE'S BEEN A DRAMATIC SLOWDOWN IN THE GROWTH OF EXPORTS PARTLY BECAUSE THE DOMESTIC MARKET IS INCREASINGLY ATTRACTIVE SAYS A WESTERN ECONOMIST THERE IS AN EMERGING MIDDLE CLASS AND IT'S HUGE IT COULD BE 50 MILLION ABOUT EQUAL TO FRANCE OR 300 MILLION EQUAL TO THE US AND CANADA NO ONE REALLY KNOWS BUT VAST NUMBERS OF CHINESE HAVE MODEST DISPOSABLE INCOMES ENOUGH NOW AND THEN FOR PRETTIER CLOTHES A SIMPLE APPLIANCE OR A CARTON OF BUD'S ICE CREAM MANY CHINESE REMAIN DESPERATELY POOR BUT THE WORLD BANK ESTIMATES 160 MILLION HAVE BEEN LIFTED FROM POVERTY SINCE 1979 NOTES A DIPLOMAT COMPOUND A 9 ANNUAL GROWTH RATE FOR MORE THAN A DECADE AND THIS IS WHAT YOU GET THE DOWNSIDE IS THAT IT AFFECTS EXPORT EARNINGS ACCORDING TO CHINESE FIGURES TOTAL TRADE ROSE NEARLY 19 IN THIS YEAR'S FIRST FIVE MONTHS TO 501 BILLION BUT LED TO A 3 BILLION DEFICIT AFTER HEALTHY SURPLUSES IN RECENT TIMES IF BY THE END OF THE YEAR THE EXPORT GROWTH RATE REMAINS MARGINAL IT COULD HAVE A NEGATIVE IMPACT ON NEXT YEAR'S IMPORTS OF INVESTMENT GOODS SAY SHI JIANXIN A DEPUTY DIRECTORGENERAL OF THE MINISTRY OF FOREIGN ECONOMIC RELATIONS AND TRADE SO FAR THE REACTION IS TO TRY HARDER ON THE EXPORT SIDE RATHER THAN TO CUT BACK IMPORTS OR SUPPRESS DOMESTIC DEMAND WHICH MIGHT BE RISKY FOR EXAMPLE OFFICIALS HOPE TO SOLVE TRANSPORTATION BOTTLENECKS AND MAKE MORE CAPITAL AVAILABLE TO UPGRADE PRODUCT QUALITYHENCE EXPORT PRICES THEY ALSO HOPE WEAK WESTERN ECONOMIES WILL REVIVE SOON REDUCING RELIANCE ON THE US MARKET WHICH GAVE CHINA A 19 BILLION SURPLUS LAST YEAR YET AT THE POWERFUL STATE ECONOMIC AND TRADE COMMISSION CREATED RECENTLY TO DIRECT OVERALL ECONOMIC POLICY TRADE TRENDS ARE ON ITS SHORT LIST OF SERIOUS PROBLEMS OUR GUIDING PRINCIPLE IS TO SEEK EQUILIBRIUM SAYS WANG YUANZHI A SENIOR OFFICIAL BUT HE ADDS WE WILL TAKE MEASURES TO RESTORE THE BALANCE 9306180131 930618 FINANCING BUSINESS OMI CORP OMI CORP NEW YORK SAID ITS BOARD VOTED NOT TO DECLARE A SEMIANNUAL DIVIDEND SAVING THE BULK SHIPPING COMPANY ABOUT 4 MILLION OMI LAST PAID A SEVENCENT SEMIANNUAL DIVIDEND JAN 21 THE COMPANY SAID IT PLANS TO DECLARE SPECIAL DIVIDENDS IN THE FUTURE RATHER THAN REGULAR DIVIDENDS DEPENDING ON OPERATING RESULTS THE COMPANY'S DECISION REFLECTS SLUGGISH SHIPPING MARKETS WORLDWIDE 9306180130 930618 US TO SHED URANIUM ENRICHING BUSINESS OPERATION MOVES TO PRIVATIZE AS COMPETITIVENESS SLIPS BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL ENRICHING MINED URANIUM FOR USE IN COMMERCIAL REACTORS IS SOMETHING THE US GOVERNMENT HAS BEEN DOING LONGER THAN ANYONE ELSE IN THE WORLD LONGEVITY HOWEVER HASN'T RESULTED IN PROFITABILITY OR POPULARITY IN FISCAL 1991 THE LATEST YEAR FOR WHICH FINAL RESULTS ARE AVAILABLE THE US GOVERNMENT'S ENRICHMENT BUSINESS REPORTED 141 BILLION IN REVENUE BUT AN OPERATING LOSS OF 1787 MILLION AND WORLDWIDE MARKET SHARE FOR THE US ENRICHMENT OPERATION ONCE A MONOPOLY HAS DWINDLED TO 46 MOREOVER CUSTOMER COMPLAINTS ABOUT INSENSITIVE BUSINESS PRACTICES AND INFLEXIBLE PRICING HAVE INCREASED IN RECENT YEARS NOW IN HOPES OF ALLEVIATING SUCH COMPLAINTS AND MAKING SOME MONEY FOR UNCLE SAM THE ENERGY DEPARTMENT PLANS TO PRIVATIZE THE ENRICHMENT BUSINESS UNDER A 1992 LAW THE MOVE TOWARD PRIVATIZATION WILL BEGIN JULY 1 WHEN THE BUSINESS BECOMES THE US ENRICHMENT CORP WITH THE TREASURY HOLDING THE SHARES THE GOVERNMENT PROJECTS US ENRICHMENT WILL CONTRIBUTE AS MUCH AS 3 BILLION TO THE US TREASURY FROM A REDUCTION IN THE ONCEPROFITABLE AGENCY'S OPERATING LOSSES PLUS EXPECTED DIVIDEND PAYMENTS AND THE COMPANY'S EVENTUAL SALE US ENRICHMENT WILL HAVE TWO YEARS TO SUBMIT TO THE GOVERNMENT A PLAN FOR THE SALE US ELECTRIC UTILITIES THE OPERATION'S CUSTOMERS ARE UPBEAT ABOUT THE PLANS WHAT THIS DOES IS CREATE MORE OF A BUSINESS ATMOSPHERE AND WITH THAT WE'D HOPE FOR MORE FLEXIBILITY SAID KEN CANADY MANAGER OF NUCLEAR ENGINEERING AT DUKE POWER CO CHARLOTTE NC WHICH OPERATES SEVEN NUCLEAR UNITS BUT PROSPECTS FOR THE BUSINESS AREN'T BRIGHT WORLD CAPACITY FOR ENRICHMENT SERVICES IS ESTIMATED AT AS MUCH AS 40 ABOVE DEMAND GROWTH MARKETS ARE MAINLY IN THE PACIFIC RIM COUNTRIES ADDITIONALLY THOUGH US ENRICHMENT WON'T BE RESPONSIBLE FOR EXISTING ENVIRONMENTAL PROBLEMS IT WILL NEED TO FIGURE OUT HOW TO DISPOSE OF THE NUCLEAR WASTE IT WILL GENERATE ENRICHMENT SERVICES PREPARE RAW URANIUM FOR COMMERCIAL USE BY INCREASING THE CONTENT OF THE ISOTOPE U235 IN THE URANIUM MINED URANIUM MADE UP MAINLY OF U238 NORMALLY CONTAINS LESS THAN 1 OF U235 FOR USE IN A NUCLEAR REACTOR THE RAW URANIUM NEEDS TO BE ENRICHED TO A 3 TO 5 LEVEL WEAPONSGRADE URANIUM USUALLY CONTAINS ABOUT 97 U235 US ENRICHMENT WILL GET SOME IMMEDIATE BENEFITS IN CONVERTING FROM AN AGENCY TO A GOVERNMENTOWNED COMPANY IT WILL NO LONGER OWE THE TENNESSEE VALLEY AUTHORITY 1604 MILLION FOR CONTRACTED BUT UNUSED ELECTRICITY COSTS AND WILL PAY ONLY A FRACTION OF THE 3511 MILLION SPENT IN FISCAL 1991 TO CLEAN UP ENVIRONMENTAL PROBLEMS IN PRELIMINARY 1992 FIGURES WHICH REFLECT THE CHANGES IN EXPENSES US ENRICHMENT SAID IT HAD 148 BILLION IN REVENUE AND A 341 MILLION OPERATING PROFIT US ENRICHMENT OFFICIALS BELIEVE THEY CAN GRAB BACK SOME OF THE MARKET WHICH THE US DOMINATED UNTIL IT STOPPED ACCEPTING ORDERS IN 1974 WHEN ITS ORDER BOOK WAS FILLED TWO NEW EUROPEAN ENRICHMENT OPERATIONS EURODIF AND URENCO ALONG WITH A SOVIET ENRICHMENT PROGRAM HAVE BEGUN TO ERODE THE US MARKET SHARE AND THE SUBSEQUENT CANCELLATION OF MORE THAN 100 NUCLEAR POWER PLANT ORDERS CREATED A CAPACITY GLUT IN THE LATE 1970S BACKERS OF PRIVATIZATION HOPE IT WILL RESTORE SOME COMPETITIVENESS TO THE VENTURE PRICES FOR EXAMPLE HAVE TENDED TO REFLECT FEDERAL BUDGET PRESSURES MORE THAN MARKET REALITIES SAID WILLIAM H TIMBERS THE DIRECTOR OF US ENRICHMENT'S TRANSITION TO A PRIVATE COMPANY IN ADDITION THE PRICES HAD TO BE PUBLISHED EVERY YEAR MAKING THEM PRETTY EASY TO BEAT AND LONGTERM PLANS WERE OPENLY DISCUSSED IN CONGRESSIONAL HEARINGS BUT THAT WILL ALL CHANGE AFTER JULY 1 IN ADDITION THE COMPANY WILL BE FREE TO NEGOTIATE DEALS INDIVIDUALLY MR TIMBERS WHO WILL DIRECT THE OPERATION UNTIL A BOARD OF DIRECTORS IS APPROVED BY THE SENATE SUGGESTS THAT THE ENRICHMENT CORPORATION MAY ENTER OTHER SERVICES INCLUDING THE NEXT STAGE IN THE URANIUM REFINING PROCESS KNOWN AS FABRICATING THAT BUSINESS IS DOMINATED IN THE US BY GENERAL ELECTRIC CO AND WESTINGHOUSE ELECTRIC CORP FABRICATORS TAKE ENRICHED URANIUM TRANSFORM IT INTO PELLETS AND PLACE THE PELLETS INTO FUEL RODS THAT ARE USED IN REACTORS OTHER CHANGES EXPECTED AT THE COMPANY INCLUDE STREAMLINING THE WORK FORCE POSSIBLY SHUTTING DOWN ONE OF THE TWO ENRICHMENT PLANTS THE COMPANY WILL LEASE FROM THE ENERGY DEPARTMENT AND SEEKING OUT INTERNATIONAL BUSINESS MORE AGGRESSIVELY ALSO THE RUSSIANS ARE EXPECTED SOON TO PROVIDE US ENRICHMENT WITH A NEW SUPPLY OF URANIUM FROM MOTHBALLED NUCLEAR WARHEADS THE WEAPONSGRADE URANIUM WHICH IS REFINED TO A FAR GREATER EXTENT THAN COMMERCIALUSE URANIUM WILL BE REDUCED TO COMMERCIAL LEVELS AND THEN SOLD TO NUCLEAR POWER OPERATIONS 9306180129 930618 BUSINESS BRIEF OMRON CORP PRETAX PROFIT DROPPED 53 IN YEAR FOR JAPANESE CONCERN OMRON CORP A MAJOR JAPANESE MAKER OF CONTROL PARTS SUCH AS SWITCHES AND RELAYS SAID ITS CONSOLIDATED PRETAX PROFIT DIVED 53 TO 938 BILLION YEN 88 MILLION IN THE YEAR ENDED MARCH 31 PROFIT FOR THE YEAREARLIER PERIOD WAS 1980 BILLION YEN OMRON CITED THE YEN'S STRENGTHENING AGAINST OTHER MAJOR CURRENCIES AND CONTINUED WEAK MARKET CONDITIONS AS DRAGGING ON REVENUE THE CONSOLIDATED STATEMENT COVERS OMRON AND 112 CONSOLIDATED SUBSIDIARIES THE COMPANY SAID ITS OUTLOOK FOR THE CURRENT FISCAL YEAR LOOKS TO GROWTH MUTED BY THE YEN'S CONTINUED FIRMING THE COMPANY EXPECTS PRETAX PROFIT TO RISE 17 TO 11 BILLION YEN 9306180128 930618 BUSINESS BRIEF EKO STAHL AG ITALIAN STEEL GROUP MAY BUY MAJORITY OF GERMAN CONCERN ITALIAN STEEL GROUP RIVA IS NEGOTIATING WITH GERMANY'S PRIVATIZATION AGENCY TO TAKE OVER A MAJORITY STAKE IN THE EASTERN GERMAN STEEL MILL EKO STAHL AG A REPRESENTATIVE OF TREUHANDANSTALT THE AGENCY THAT IS SELLING FORMER EAST GERMANY PROPERTY CONFIRMED IN ADDITION A LETTER OF INTENT HAS BEEN SIGNED WITH A RUSSIAN METALLURGICAL COMBINE TSCHEREPOWEZ TO TAKE A 10 INTEREST IN EKO THE TREUHAND SAID ACCORDING TO A REPORT IN THE GERMAN MAGAZINE MANAGER MAGAZIN RIVA WOULD PAY 30 MILLION MARKS 181 MILLION FOR THE STAKE AND WOULD RETAIN AN OPTION TO PURCHASE THE REMAINING 39 FROM THE TREUHAND AT A LATER DATE A RIVA OFFICIAL REFUSED TO CONFIRM OR DENY THE REPORT THE TREUHAND MEANWHILE CONFIRMED THE BROAD OUTLINES OF THE DEAL WITHOUT COMMENTING ON DETAILS 9306180127 930618 IMCERA RESTRUCTURES WILL POST A CHARGE FOR ITS 4TH QUARTER NORTHBROOK ILL IMCERA GROUP INC IN AN ATTEMPT TO ENHANCE AND SUSTAIN FUTURE EARNINGS COMPLETED ITS PREVIOUSLY ANNOUNCED FISCAL 1993 RESTRUCTURING PROGRAM FOR THE FISCAL FOURTH QUARTER ENDING JUNE 30 THE HEALTH PRODUCTS AND SPECIALTY CHEMICALS COMPANY SAID IT WILL RECORD A PRETAX RESTRUCTURING CHARGE OF ABOUT 325 MILLION OR AN AFTERTAX AMOUNT OF ABOUT 230 MILLION OR 295 A SHARE ABOUT 100 MILLION OF THE TOTAL INVOLVES AFTERTAX CASH EXPENDITURES IMCERA SAID MOST OF THE TOTAL WILL BE FOR RESTRUCTURING ACTIONS TAKEN AT THE COMPANY'S PITMANMOORE ANIMAL HEALTH PRODUCTS UNIT THE COMPANY'S RESTRUCTURING INCLUDES DISCONTINUING THE DEVELOPMENT OF PITMANMOORE'S GROLENE BRAND OF PORCINE SOMATOTROPIN INCLUDING MANUFACTURING AND OTHER SUPPORT FACILITIES IN TERRE HAUTE IND CLOSURE OF 10 ADDITIONAL MANUFACTURING PLANTS AND OTHER DISTRIBUTION AND SUPPORT FACILITIES IN FIVE COUNTRIES AND SEVERANCE COSTS RELATED TO A PITMANMOORE WORKFORCE REDUCTION OF 30 OR ABOUT 1000 JOBS OVER THE NEXT TWO YEARS AS A RESULT OF THE RESTRUCTURING CHARGE AND THE ADOPTION OF NEW ACCOUNTING STANDARDS IMCERA SAID ITS SHAREHOLDERS' EQUITY AT JUNE 30 THIS YEAR WILL BE ABOUT 975 MILLION THE RATIO OF TOTAL DEBT TO INVESTED CAPITAL IS EXPECTED TO INCREASE TO ABOUT 40 FROM 33 THE COMPANY SAID 9306180126 930618 INTERNATIONAL CHINESE STATE ENTERPRISES INVESTED HEAVILY IN MAY BEIJING CHINESE STATE ENTERPRISES IGNORED ORDERS TO SLOW DOWN THEIR PELLMELL GROWTH AND INVESTED ABOUT 92 BILLION IN FIXED ASSETS IN MAY UP 70 FROM MAY 1992 THE OFFICIAL XINHUA NEWS AGENCY SAID THE MAY FIGURE ALMOST EQUALLED TOTAL STATE ENTERPRISE INVESTMENTS IN FIXED ASSETS FOR THE FIRST THREE MONTHS OF THE YEAR INDICATING THAT COMPANIES ARE IGNORING THE GOVERNMENT'S CALLS TO CUT BACK ON NEW PROJECTS AND EXPANSIONS TOO MUCH OF THE NEW INVESTMENT IS NONPRODUCTIVE OR DUPLICATORY AUTHORITIES HAVE SAID THEIR MAIN WORRY HOWEVER IS THAT SOARING DEMAND FOR CONCRETE STEEL FUEL AND OTHER INDUSTRIAL AND CONSTRUCTION MATERIALS HAS SENT INFLATIONARY RIPPLES THROUGHOUT THE ECONOMY RETAIL PRICES IN CITIES WERE UP NEARLY 17 IN MAY FROM ONE YEAR EARLIER XINHUA SAID INDUSTRIAL PRODUCTION IN MAY WAS UP 27 FROM MAY 1992 IT SAID THE NUMBER OF STATE COMPANIES OPERATING AT A DEFICIT STILL HOVERED AROUND ONETHIRD BUT DID NOT GIVE A FIGURE FOR THEIR TOTAL LOSSES IMPORTS ROSE NEARLY 34 FROM MAY 1992 TO 85 BILLION WHILE EXPORTS GREW ONLY 92 TO 72 BILLION THE REPORT SAID WIDENING THE TRADE DEFICIT SO FAR THIS YEAR TO 31 BILLION 9306180125 930618 REVIEW & OUTLOOK EDITORIAL THE DEMOCRATS' WAR ON MARRIAGE WE'VE ALREADY POINTED OUT HERE HOW THE CLINTON PROPOSALS WILL CLOBBER SMALL BUSINESS AND JOB CREATION AND SPAWN TAX SHELTERS WHILE GENERATING VERY LITTLE NET REVENUE TO COPE WITH THE HORRIBLE TERRIBLE BUDGET DEFICIT NOW WE'VE GOT THE SENATE FINANCE COMMITTEE WEIGHING IN WITH ITS VARIATION ON CLINTONOMIX ONE THING HASN'T CHANGED THE CLASS WARFARE ECONOMY IS STILL UP AND RUNNING NOTICE THAT THEY HAVEN'T ALTERED THE UPWARD DIRECTION OF INCOME TAXES MOREOVER SENATE FINANCE NOW WANTS TO APPLY THE MISNAMED MILLIONAIRE'S SURTAX TO CAPITAL GAINS AS IF INVESTING IS ANTISOCIAL AND SHOULD BE STAMPED OUT INDEED GEORGE MITCHELL SENATE LEADER OF THE CLINTON DEMOCRATS IS BRAGGING THAT THEY'RE RESTORING PROGRESSIVITY TO THE TAX CODE AS IF HIGH MARGINAL RATES ARE SYNONYMOUS WITH THE ADVANCE OF CIVILIZATION AS A MATTER OF STRAIGHT ETYMOLOGY THE PROGRESS IN PROGRESSIVITY HAS NOTHING TO DO WITH MOVEMENT TOWARD A BETTER WORLD IN A BETTER WORLD THE TAX CODE WOULDN'T PUNISH MARRIAGE UNDER THE CLINTON DEMOCRATS' PLAN THERE ARE SUBSTANTIAL PENALTIES FOR MARRIAGES AT BOTH ENDS OF THE INCOME SCALE AND FOR RETIRED COUPLES TO GIVE A SINGLE CASE A COUPLE WHO EACH MAKE 115000 WOULD SAVE 4500 A YEAR BY DIVORCING BUT THIS IS QUIBBLING THE WHOLE CLINTON PLAN IS A TAX ON WORKING SAVING AND FAMILYMAKING MR CLINTON SEEMS TO THINK HE'S HOT ON THE TRAIL OF SOME BIZARRE SPECIES OF DISEMBODIED PLUTOCRAT BELIEVED TO BE LURKING SOMEWHERE OUT IN THE ETHER SINCE 1981 IN REALITY THE CLINTON TAXES WILL LAND ON PEOPLE MOST FITTINGLY DESCRIBED AS FAMILIES THEY WON'T BE PAYING TAXES ON S&L LOOT ACQUIRED IN THE 1980S BUT ON CURRENT INCOME BEGINNING WITH COUPLES MAKING 140000 SOME WILL PAY 45 CENTS IN TAXES ON EACH DOLLAR OF THEIR NEXT PAY RAISE 55 CENTS IF YOU COUNT STATE AND LOCAL TAXES THE WHITE HOUSE WOULD HAVE US BELIEVE THESE HOUSEHOLDS ARE WALLOWING IN UNTOLD WEALTH IT'S TRUE THAT AMERICA IS EXPERIENCING A WIDENING INEQUALITY IN INCOMES BUT THE GAP IS LARGELY BETWEEN COMPARABLE PEOPLE AT DIFFERENT POINTS IN LIFE THERE'S A GREAT DEAL OF LIFETIME MOBILITY ALONG THE INCOME SCALE CONSIDER HOUSEHOLDS EARNING OVER 100000 AND THOSE EARNING LESS THAN 10000 THE RICH HOUSEHOLDS APPEAR THAT WAY PARTLY BECAUSE THEY HAVE THE EARNINGS OF FOUR TIMES AS MANY WORKERS CONTRIBUTING TO THEIR HOUSEHOLD INCOME BUT THEY ALSO SPREAD THE PROCEEDS OVER NEARLY TWICE AS MANY TOTAL HOUSEHOLD MEMBERS AKA KIDS YOU GET ANOTHER ANGLE ON THE SAME PHENOMENON BY LOOKING AT THE DISTRIBUTION OF TWOEARNER COUPLES ALONG THE INCOME SCALE THE LARGEST NUMBER 35 APPEAR IN THE TOP QUINTILE WHILE ONLY 34 APPEAR IN THE BOTTOM QUINTILE NOWADAYS 60 OF ALL FAMILIES KEEP AFLOAT BY SENDING BOTH SPOUSES OUT TO WORK AT LEAST PARTTIME WHAT STORY DO THESE DATA TELL RICH HOUSEHOLDS OFTEN SHOW UP ON THE INCOME RADAR SCREEN BECAUSE TWO SINGLE EARNERS MARRY AND MERGE INTO ONE HOUSEHOLD WITH THE IDEA OF TAKING UP THE FINANCIAL CHALLENGE OF BRINGING CHILDREN INTO THE WORLD OF COURSE MOST OF THESE COUPLES DON'T HAVE A COMBINED INCOME OF 140000 AND NEVER WILL BUT WHOEVER THEY ARE THE DECISION TO MARRY COMBINE INCOMES AND MAKE A FAMILY PROPELS THEM RAPIDLY IN THE DIRECTION OF THE NEXT HIGHER BRACKET THAT'S WHY MANY COUPLES FACE A STIFF MARRIAGE PENALTY PROMPTING SOME TO CHOOSE AN ALTERNATIVE LIFESTYLE AS A TAX DODGE MR CLINTON'S NEW BRACKETS WILL CRASH ESPECIALLY HARD ON FAMILYCREATION AT THE PROFESSIONAL END OF THE INCOME SCALE THESE COUPLES WAIT LONGER BEFORE GETTING MARRIED AND PRODUCING KIDS AND ARE LIKELY TO BE ENTERING THEIR PEAK EARNING AND TAXPAYING YEARS IS THIS JUST THE PRICE THEY PAY FOR BEING SELFISH AND CAREEROBSESSED WE DOUBT THAT'S THE MESSAGE COMING FROM THE HAGGARD 40YEAROLDS TRAILING TODDLERS AROUND THE SUPERMARKET THESE HIGHEARNING COUPLES TEND TO LABOR HARD TO GIVE THEIR KIDS A DECENT MIDDLE CLASS UPBRINGING TO TOP IT OFF A TYPICAL FAMILY WITH TWO KIDS ALREADY PAYS 24 OF ITS INCOME IN FEDERAL TAXES UP FROM A MERE 2 IN 1948 NOW THE MAN FROM HOPE WANTS TO ELBOW HIS WAY TO AN EVEN BIGGER SHARE BUT PARENTS ALREADY HAVE ENOUGH MORTGAGE BANKERS DAY CARE PROVIDERS ORTHODONTISTS AND OTHER HANGERSON TO SUPPORT WITH THEIR INCOMES THE DEFICIT IS NOT A PROBLEM WORTH WRECKING FAMILIES OR THE ECONOMY OVER IN ANY CASE YOU'LL NEVER SOLVE IT EXCEPT BY GROWING THE ECONOMY AND DOING A FUNDAMENTAL RETHINKING ON THE SPENDING SIDE IN THE MEANTIME HACKING AT PEOPLE WITH HIGHER MARGINAL TAX RATES IS BAD ECONOMICS BAD FAMILY POLICY BAD EVERYTHING THIS KIND OF CLASSWARFARE PROGRESSIVITY DOES NOT POINT THE WAY TO A BETTER WORLD 9306180124 930618 BUSINESS BRIEF AMOCO CORP UNIT IN PACT TO STUDY AREA WITH PETROLEOS DE VENEZUELA A UNIT OF AMOCO CORP AND LAGOVEN SA AN AFFILIATE OF PETROLEOS DE VENEZUELA SA SIGNED AN AGREEMENT TO STUDY AN AREA OFFSHORE VENEZUELA AND TRINIDAD THE STUDY WILL LOOK FOR OIL AND GAS POTENTIAL IN THE 7000 SQUARE MILE AREA SAID THE COMPANIES THE AREA IS LOCATED MOSTLY IN VENEZUELAN WATERS OFFSHORE EAST VENEZUELA AND SOUTHERN TRINIDAD THE AREA IS OF MUTUAL INTEREST TO BOTH COMPANIES AMOCO BASED IN CHICAGO ALREADY HAS PRODUCTION OPERATIONS IN TRINIDAD AND LAGOVEN HAD PREVIOUSLY DRILLED SOME EXPLORATORY WELLS THERE IN THE 1970S AND EARLY 1980S 9306180123 930618 BUSINESS BRIEFS REYNOLDS & REYNOLDS CO AGREED TO BUY COIN INC OF ATLANTA THE PRICE WASN'T DISCLOSED VALUE CITY DEPARTMENT STORES INC WILL CLOSE THE TWO REMAINING DISCOUNT STORES OF ITS GB STORES INC UNIT IN JOHNSTOWN AND ALTOONA PA APPLIED MATERIALS INC AND KOMATSU LTD OF JAPAN SIGNED A LETTER OF INTENT TO FORM A JOINT VENTURE APPLIED DISPLAY TECHNOLOGY INC TO MAKE FLAT PANEL DISPLAYS FOR LAPTOP COMPUTERS TIMKEN CO SAID IT WOULD RESUME WORK ON ITS 120 MILLION TAPERED ROLLER BEARINGS PLANT IN ASHEBORO NC CONSTRUCTION WAS POSTPONED BY THE COMPANY IN SEPTEMBER RANDOM ACCESS INC SIGNED A TWOYEAR CONTRACT TO SUPPLY MICROCOMPUTER PRODUCTS AND SERVICES TO MARATHON OIL CO A DIVISION OF USX CORP TERMS OF THE CONTRACT WEREN'T DISCLOSED DVI HEALTH SERVICES CORP SAID SHAREHOLDERS APPROVED A NAME CHANGE TO DVI INC 9306180122 930618 PRODUCTIVITY DROPPED MORE THAN REPORTED FOR THE FIRST QUARTER WASHINGTON THE FIRST QUARTER DECLINE IN PRODUCTIVITY WAS MUCH LARGER THAN ORIGINALLY REPORTED THE LABOR DEPARTMENT SAID REVISED FIGURES SHOW THAT NONFARM BUSINESS PRODUCTIVITY FELL AT AN ANNUAL RATE OF 16 IN THE FIRST QUARTER RATHER THAN THE 01 DROP REPORTED LAST MONTH NONFARM PRODUCTIVITY ROSE AT A REVISED ANNUAL RATE OF 32 IN THE FOURTH QUARTER OF LAST YEAR PRODUCTIVITY IS DEFINED AS OUTPUT PER HOUR OF WORK THE REVISIONS REFLECT BENCHMARK CHANGES IN BOTH EMPLOYMENT AND PRODUCTION DATA THE DEPARTMENT ALSO SAID UNIT LABOR COSTS ROSE AT AN ANNUAL RATE OF 5 IN THE FIRST QUARTER COMPARED WITH A REVISED 06 INCREASE IN THE FOURTH QUARTER IN ANOTHER REPORT YESTERDAY THE LABOR DEPARTMENT SAID INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS WERE UNCHANGED IN THE WEEK ENDED JUNE 12 FROM A REVISED 344000 THE PREVIOUS WEEK IN THE WEEK ENDED JUNE 5 2769000 PEOPLE WERE RECEIVING STATE UNEMPLOYMENT BENEFITS UP 52000 FROM THE PREVIOUS WEEK THE FOURWEEK AVERAGE FOR CLAIMS ROSE TO 343250 DURING THE JUNE 12 WEEK UP 750 FROM THE WEEK BEFORE FIGURES IN BOTH REPORTS ARE SEASONALLY ADJUSTED 9306180121 930618 ITALY'S BIRTHRATE THE WORLD'S LOWEST IS A VEXING ANOMALY FAMILY PLANNING AT THE CENTER OF CATHOLICISM IS SURPRISE THE BIRTH DEARTH IN MILAN BY PETER GUMBEL STAFF REPORTER OF THE WALL STREET JOURNAL MILAN ITALY WITHOUT PASTA UNTHINKABLE ITALY WITHOUT OPERA AND ICE CREAM INCONCEIVABLE BUT ITALY WITHOUT ITALIANS THE IDEA IS JUST AS PREPOSTEROUS BUT THE DEMOGRAPHIC TRENDS ARE IN THAT DIRECTION IN A COUNTRY KNOWN FOR THE LOVE OF CHILDREN FOR THE LAUGHTER WARMTH AND SPONTANEITY OF EXTENDED FAMILIES COUPLES GENERALLY SPEAKING HAVE STOPPED HAVING AS MANY KIDS AS THEIR PARENTS DID THE ITALIAN BIRTHRATE HAS HALVED IN LESS THAN 30 YEARS ITALY IS PRODUCING FEWER CHILDREN RELATIVE TO THE POPULATION THAN ANY OTHER COUNTRY ACCORDING TO THE WORLD HEALTH ORGANIZATION ITALY IS ALSO THE ONLY WESTERN INDUSTRIALIZED NATION THAT IS SHOWING AN ACTUAL DROP IN POPULATION OF ABOUT 1 ANNUALLY THE DECLINE IS PARTICULARLY ACUTE IN THE TOWNS OF NORTHERN ITALY BUT YOUNGSTERS ARE DISAPPEARING FROM TOP TO TOE OF THIS BOOTSHAPED NATION THROWING UP THEIR HANDS ALARMISTS ARE URGING SWIFT REMEDIAL ACTION OTHERWISE WHO WILL KEEP THE ITALIAN ECONOMY GOING AND A FEW YEARS DOWN THE ROAD PAY THE PENSIONS OF THE AGING POPULATION A CANDIDATE IN THIS MONTH'S MAYORAL ELECTION IN MILAN NANDO DALLA CHIESA SENT A LETTER TO HIS CONSTITUENTS SCOLDING THEM FOR SELFISHLY PUTTING LIFESTYLE AHEAD OF FAMILY THE SMILE OF YOUR CHILD IS WORTH A HUNDRED TIMES YOUR DESIRE TO BE FREE TO SEE PERU COLORADO OR BURMA HE WROTE ITALIANS TO GENERALIZE LOVE A GOOD ARGUMENT ALMOST AS MUCH AS THEY LOVE CHILDREN AND SOME DON'T TAKE WELL TO BEING TOLD HOW TO LEAD THEIR LIVES MR DALLA CHIESA WHO WAS CONSIDERED A FRONTRUNNER DID FAR WORSE THAN EXPECTED IN THE FIRST ROUND OF VOTING THE DECIDING VOTE WILL TAKE PLACE ON SUNDAY WE HAVE HAD A LOT IMPOSED ON US SEXUALITY AND REPRODUCTION HAVE ALWAYS BEEN MANAGED HERE GRUMBLES GIORGIO SCIORTINO A GYNECOLOGIST AND HEAD OF A FAMILYPLANNING CLINIC IN MILAN DR SCIORTINO RECALLS CHILDBEARING CAMPAIGNS BY MUSSOLINI'S FASCISTS EMPLOYING SUCH SLOGANS AS STRENGTH IN NUMBERS SO WHERE HAVE ALL THE BAMBINI GONE EXPERT EXPLANATIONS ABOUND MOST OF THEM HAVING TO DO WITH ITALY'S RAPID INCREASE IN LIVING STANDARDS OVER THE PAST 30 YEARS THE GROWING EMANCIPATION OF WOMEN AND THE WANING INFLUENCE OF CATHOLIC DOCTRINE BUT THIS ISN'T GERMANY WHERE A DROP IN BIRTHRATES IN THE 1980S SPARKED MONTHS OF PUBLIC ANGUISH ABOUT THE DECLINE OF ETHNIC GERMANS MANY HERE TAKE THE TALK OF ITALIANS DYING OUT WITH A GRAIN OF SALT JUST WANDER INTO MILAN'S BIGGEST PARK TO THE FOUNTAIN FAVORED AS A MEETING PLACE FOR WOMEN WITH THEIR DOGS AND SOMETIMES CHILDREN THERE WILL ALWAYS BE ITALIANS EVEN IF YOU HAVE TO GO TO SANTO DOMINGO TO FIND THEM SAYS PATRIZIA TOMASELLO REFERRING TO THE CARIBBEAN RESORT TO WHICH SEVERAL ITALIAN POLITICIANS AND BUSINESS EXECUTIVES HAVE RECENTLY FLED TO ESCAPE INVESTIGATIONS OF CORRUPTION BACK HOME STILL A TINGE OF REGRET IS DISCERNIBLE I'M A RECORD I HAD TWO CHILDREN MOST OF MY FRIENDS HAD ONE OR NONE SAYS GIOVANNA BURAGGI 35 SITTING ON THE GRASS WATCHING HER OFFSPRING LUDOVICO AND CAMILLA BLOWING SOAP BUBBLES IF YOU COULD START OVER YOU WOULD HAVE MORE CERTAINLY WITH MORE MONEY I WOULD HAVE STARTED EARLIER THE BIGGEST PROBLEM IS THE APARTMENTS I'D HAVE FOUR OR FIVE CHILDREN BUT WE LIVE IN TOO SMALL A HOUSE SAYS MRS TOMASELLO WHO HAS ONE SUCH TALK FAILS TO IMPRESS LIA JACOPONE A SALESWOMAN IN THE GIO MORETTI CHILDREN'S CLOTHING STORE NEAR THE PARK HOUSES WERE JUST AS SMALL OR EVEN SMALLER 40 YEARS AGO SHE SAYS SO THAT IS NO ARGUMENT BUT SHE TOO IS CHILDLESS NO MATTER HOW THEY ARE EXPLAINED THE BIRTH STATISTICS AMOUNT TO AN INTERESTING ANOMALY HOW COULD IT HAPPEN THAT THE NATION THAT IS THE SPIRITUAL AND GEOGRAPHICAL CENTER OF ROMAN CATHOLICISM A RELIGION CENTERED ON MOTHERCHILD RELATIONS AND DOCTRINALLY OPPOSED TO CONTRACEPTION AND ABORTION HAS A DECLINING POPULATION DON CESARE BOGA IS THE PRIEST IN CHARGE OF ST BARTHOLOMEW'S CHURCH A PARISH OF 50000 OF THE MOST AFFLUENT MILANESE HE SETTLES IN BEHIND A BIG WOODEN DESK IN HIS OFFICE CLEARS HIS THROAT AND QUIETLY EXPLAINS LIFE HAS BECOME MORE COMPLICATED THE CLICHE OF ITALIAN LIFE WAS FOUNDED ON THE WORKING FATHER AND THE MOTHER IN CHARGE OF FAMILY LIFE NOW THE WOMAN WANTS TO WORK SO WHO IS RESPONSIBLE FOR BRINGING UP THE CHILDREN YES HE CONTINUES THERE IS A CONTRADICTION BETWEEN THE CHURCH'S OFFICIAL REJECTION OF ARTIFICIAL BIRTH CONTROL AND THE COMMON PRACTICE OF MOST BELIEVERS AND IF THERE HAS TO BE A CHOICE BIRTH CONTROL WINS IF A HUSBAND AND WIFE DECIDE NOT TO HAVE CHILDREN THEY CAN USE CONTRACEPTIVES THE CHURCH DOESN'T WANT TO LOSE THESE PEOPLE FATHER CESARE SAYS WAIT A MINUTE ISN'T THIS HERESY PROBABLY BUT IT IS ALSO MILAN WHICH IS FAR NORTH OF ROME AND AS A LEADER IN THE DEBIRTHING TREND MORE TOLERANT OF IT THAN VATICAN CITY IS ITALY AS A WHOLE HAS 98 LIVE BIRTHS PER 1000 POPULATION IN MILAN THE FIGURE IS JUST OVER SEVEN IN EUROPE AS A WHOLE THE AVERAGE IS ABOUT 128 BIRTHS ACCORDING TO THE WORLD HEALTH ORGANIZATION WHILE IN THE US IT IS ABOUT 16 BIRTH CONTROL AND ABORTION HAVE BEEN PERMITTED BY ITALIAN LAW FOR TWO DECADES BUT EVEN IF SOME LOCAL CHURCH OFFICIALS ARE PRAGMATIC ABOUT THEIR INTERPRETATION OF PAPAL DOCTRINE THAT DOESN'T MEAN CATHOLICISM HAS LOST ITS INFLUENCE DR SCIORTINO THE GYNECOLOGIST FOUGHT A 10YEAR BATTLE WITH THE MILAN HOSPITAL WHERE HE WORKS TO BE ALLOWED TO USE AMNIOCENTESIS TO TEST PREGNANT MOTHERS FOR DISEASE AND GENETIC DEFECTS IN THEIR FETUSES THE HOSPITAL WAS CONCERNED THAT USING THE PROCEDURES MIGHT INCREASE THE NUMBER OF ABORTIONS AND IT RELENTED ONLY LAST YEAR DR SCIORTINO SAYS SOME WOMEN FROM SOUTHERN ITALY WHERE RELIGIOUS CONSTRAINTS ARE TAKEN MORE SERIOUSLY COME TO MILAN TO CONSULT HIM ON FAMILY PLANNING AND CONTRACEPTION CATHOLIC ETHICS ARE ONE THING REALITY IS QUITE ANOTHER SAYS ELIANA RASERA AN ASPIRING SICILIAN POLITICIAN FROM CATANIA WHO DESCRIBES HERSELF AS A FEMINIST AND A GRANDMOTHER SHE RECALLS THE STUNNED PUBLIC REACTION WHEN SHE FIRST STARTED TALKING ABOUT SUCH ISSUES AS WOMEN'S RIGHTS AND ABORTION IN SICILY THE NICEST THING THEY CALLED ME WAS A WHORE SHE REMEMBERS DURING THE POPE'S RECENT VISIT TO THE ISLAND HOWEVER SHE TOOK PART IN A TV PHONEIN PROGRAM IN OPPOSITION TO A LOCAL PRIEST AND WAS DELIGHTED THAT MANY CALLERS SUPPORTED HER VIEWPOINT IT'S IMPOSSIBLE TO HAVE KIDS IN THIS ECONOMIC ENVIRONMENT WITH NO JOBS NO WORK AND EVERYONE IN DEBT MRS RASERA SAYS IT'S NO LONGER THE CASE THAT WHERE TWO PEOPLE EAT THREE CAN EAT PEOPLE NOW REALIZE THEY HAVE TO PROVIDE AN EDUCATION BACK IN THE MILAN PARK ALL THE TALK ABOUT BABIES HAS STIRRED UP SOMETHING HAVING EXPLAINED AT LENGTH ABOUT THE FINANCIAL CONSTRAINTS ON HAVING ANY MORE CHILDREN THE EXPENSE AND UNAVAILABILITY OF CHILD CARE AND THE IMPOSSIBILITY OF FINDING ROOM FOR THEM IN HER CRAMPED APARTMENT MRS TOMASELLO HAS AN ANNOUNCEMENT I'M GOING TO MOVE WE ARE LOOKING FOR A NEW HOUSE SHE SAYS I WANT MORE KIDS 9306180119 930618 POLITICS & POLICY POLITICAL CHIEF'S ABRASIVENESS HAS HIM IN BIT OF A SCRAPE AT THE WHITE HOUSE BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IN A WHITE HOUSE OFTEN CRITICIZED AS SHORT ON BACKBONE AND TOUGHNESS RAHM EMANUEL STANDS OUT THE WHITE HOUSE POLITICAL DIRECTOR IS ANYTHING BUT POLITIC HIS SLASH AND BURN STYLE FREQUENTLY SCARS HIS OWN TEAM AS MUCH AS THE ENEMY IN HIS SHORT TIME IN OFFICE MR EMANUEL HAS BECOME BOTH SYMBOL AND SYMPTOM OF THE PRESIDENT'S TROUBLED WHITE HOUSE STAFF WHILE MR CLINTON HAS STUMBLED ON SUCH ISSUES AS THE ECONOMIC STIMULUS BILL TO THE LANI GUINIER NOMINATION HIS STAFF HAS BEEN RIVEN BY POLITICAL MISCUES BACKBITING AND TURF WARS WITH MR EMANUEL OFTEN AT THE CENTER OF THINGS INDEED THERE ARE ALREADY SIGNS THAT THE 33YEAROLD MR EMANUEL MAY BE WEARING OUT HIS WELCOME HE CONCEDES HIS SUPERIORS HAVE TALKED TO HIM ABOUT TAKING ANOTHER WHITE HOUSE POST WITH DEPUTY POLITICAL DIRECTOR JOAN BAGGETT A POSSIBILITY TO TAKE OVER HIS CURRENT JOB BUT IN THE MEANTIME MR EMANUEL HAS ALREADY LEFT A LOT OF DEMOCRATS LICKING THEIR WOUNDS ONE IS DAVID MIXNER WHO RAISED MORE THAN 1 MILLION FOR MR CLINTON'S CAMPAIGN LAST YEAR BUT WAS LEFT OUT WHEN THE PRESIDENT INVITED A GROUP OF GAY LEADERS INTO THE OVAL OFFICE THE REASON AFTER MR MIXNER COMPLAINED THAT THE PRESIDENT WAS WAFFLING ON HIS COMMITMENT TO REVERSE THE BAN ON HOMOSEXUALS IN THE MILITARY MR EMANUEL FROZE HIM OUT HE UNJUSTLY CRITICIZED THE PRESIDENT MR EMANUEL SAYS IF SOMEBODY CRITICIZES THE PRESIDENT THEN I THINK THEY ARE PERSONA NON GRATA THE BRASH POLITICAL OPERATIVE CAN TURN EVEN THE MOST MUNDANE THINGS INTO CONTROVERSIES FOR MONTHS HE RAN A DAILY 5 PM MEETING THAT TRIED TO SET POLITICAL STRATEGY FOR THE PRESIDENT BUT IT GREW TO OVER 30 STAFF MEMBERS AND WAS INEFFECTIVE ACCORDING TO WHITE HOUSE AIDES MR EMANUEL TOLD SEVERAL ATTENDEES THE MEETING WAS CANCELED ACTUALLY HE JUST SHORTENED THE GUEST LIST AND CHANGED THE LOCATION SOME OF THOSE LEFT OUT WERE FURIOUS I AM OBVIOUSLY AWARE THAT I RUFFLED THEIR FEATHERS MR EMANUEL SAYS I DO THINK I WAS HONEST IT WOULD BE EASY TO DISMISS MR EMANUEL AS A MEMBER OF THE WHITE HOUSE THIRTYSOMETHING CROWD LACKING THE SAVVY TO HOLD DOWN A TOP WHITE HOUSE JOB BUT HIS CASE IS FAR MORE COMPLEX HE IS BRIGHT AND MORE IMPORTANT FOCUSED LOYAL AND COURAGEOUS A TRAINED BALLET DANCER HE STUDIED PHILOSOPHY AT SARAH LAWRENCE COLLEGE AND CLASSICAL RHETORICAL CRITICISM AT NORTHWESTERN UNIVERSITY WHERE HE EARNED A MASTER'S DEGREE HE ALSO IS A VETERAN OF THE ROUGH AND TUMBLE OF CHICAGO POLITICS THOUGH HE DID LEAVE IN THE MIDDLE OF CHICAGO MAYOR RICHARD DALEY'S REELECTION CAMPAIGN TO JOIN THE ISRAELI ARMED FORCES DURING THE GULF CRISIS AS MR CLINTON'S CHIEF FUNDRAISER DURING THE 1992 CAMPAIGN MR EMANUEL PROVED ABLE TO RAISE VAST SUMS OF MONEY UNDER THE MOST DIRE CIRCUMSTANCES SKIP RUTHERFORD A LITTLE ROCK ARK FRIEND OF THE CLINTONS REMEMBERS THAT IN FEBRUARY 1992 WHEN NO ONE KNEW IF BILL CLINTON WOULD SURVIVE THE GENNIFER FLOWERS AND VIETNAM DRAFT CONTROVERSIES HE FOUND MR EMANUEL IN HIS OFFICE AT MIDNIGHT DIALING THE TELEPHONE TO TROLL FOR MONEY IT'S EARLY IN CALIFORNIA MR EMANUEL TOLD HIM THEN ADDED ALWAYS REMEMBER RUTHERFORD FUNDRAISING IS A CONTACT SPORT MR RUTHERFORD SAYS THERE IS A SIDE TO MR EMANUEL THAT NO ONE SEES HE SAID MR EMANUEL BEFRIENDED HIS THREE CHILDREN DURING THE CAMPAIGN LAST YEAR AND OFTEN CALLS FROM WASHINGTON TO TALK TO THEM MR EMANUEL'S FIRST TASK WHEN MR CLINTON WON WAS TO ORGANIZE THE INAUGURAL FESTIVITIES HE ASSIGNED HIMSELF THE NO 2 CAR IN THE PARADE THEN HE SETTLED INTO HIS WHITE HOUSE OFFICE WHERE HE IS FREQUENTLY THE CONTACT FOR ELECTED AND PARTY OFFICIALS WHO NEED FAVORS FOR INSTANCE WHEN CATERPILLAR INC NEEDED THE EXPORTIMPORT BANK TO RELEASE FUNDS FOR A MULTIMILLION DOLLAR LOAN SO THAT A RUSSIAN FIRM COULD BUY EARTHMOVING EQUIPMENT FROM CAT AND NOT THE JAPANESE ILLINOIS SEN PAUL SIMON CALLED MR EMANUEL THE PEORIA FIRM GOT THE CONTRACT RAHM KNOWS HOW TO CUT THROUGH ANY BUREAUCRACY TO GET THINGS DONE SEN SIMON SAYS I KNOW FIRSTHAND THAT WHEN THE WHEELS ARE TURNING TOO SLOWLY A CALL TO RAHM CAN SPEED THINGS ALONG BUT WHEN IT COMES TO DEALING WITH COLLEAGUES MR EMANUEL'S NAKED AGGRESSIVENESS HAS HURT HIM OTHER WHITE HOUSE AIDES FOR INSTANCE ACCUSE HIM OF BADMOUTHING REGINA MONTOYA THE DIRECTOR OF INTERGOVERNMENTAL RELATIONS I DON'T TALK ABOUT FELLOW WORKERS TO THE PRESS OR OTHER PEOPLE HE SAYS AND HE TICKED OFF CHRISTINE VARNEY THE CABINET SECRETARY WHEN HE WROTE A MEMO TO TOP WHITE HOUSE OFFICIALS ON THE POLITICAL IMPLICATIONS OF SEVERAL PENDING CABINET ISSUES BABYSITTING THE CABINET IS MS VARNEY'S JOB AND SHE DIDN'T TAKE KINDLY TO THE INTRUSION SHE'S RIGHT MR EMANUEL SAYS NOW I SHOULDN'T HAVE SENT IT DURING THE FIGHT OVER MR CLINTON'S ILLFATED ECONOMIC STIMULUS BILL MR EMANUEL WAS IN CHARGE OF ORGANIZING GRASS ROOTS SUPPORT FOR IT BUT CRITICS FAULTED THE EFFORT FOR FAILING TO BUILD MUCH SUPPORT ESPECIALLY IN THE HOME STATES OF MODERATE SENATE REPUBLICANS AND HIS TAKENOPRISONERS ATTITUDE CREATED SUCH ANIMOSITY AMONG HIS COLLEAGUES WHO ALSO DO SUCH WORK INCLUDING MS MONTOYA MS VARNEY AND PUBLIC LIAISON CHIEF ALEXIS HERMAN THAT HE WASN'T GIVEN THE COORDINATING ROLE ON THE DEFICITREDUCTION BILL THE WHITE HOUSE'S FAILURE TO GENERATE MUCH STEAM ON THAT ISSUE ANGERED HOUSE MAJORITY LEADER RICHARD GEPHARDT AND HIS COLLEAGUES WHO BLAMED MR EMANUEL MEANWHILE ALLIES OF NEW YORK ATTORNEY SUSAN THOMASES A CONFIDANTE OF HILLARY RODHAM CLINTON ARE FURIOUS AT MR EMANUEL WHOM THEY ACCUSE OF SPREADING THE WORD THAT MS THOMASES WAS BEHIND THE BOTCHED FIRING OF THE WHITE HOUSE TRAVEL OFFICE STAFF EVERY ONE OF THE PRINCIPALS INCLUDING MS THOMASES AND CHIEF OF STAFF THOMAS MCLARTY HAS DENIED THE ACCUSATION MR EMANUEL INSISTS HE WASN'T THE SOURCE OF THE THOMASES REPORT BUT THE TONE OF HIS REMARKS ABOUT MS THOMASES SUGGESTS THE TENSION BETWEEN THEM WE HAVE TWO THINGS IN COMMON HE SAYS ONE WE WANT TO DO EVERYTHING WE CAN TO HELP THE CLINTONS AND TWO WE ARE BOTH AGGRESSIVE IN DOING IT FOR ALL THE TURMOIL HE HAS STIRRED UP AT THE WHITE HOUSE SO FAR THOUGH MR EMANUEL STILL HAS A WAYS TO GO TO MATCH HIS MOST NOTORIOUS POLITICAL DEED BACK IN THE MID1980S WHEN HE WAS A POLITICAL DIRECTOR FOR THE DEMOCRATIC CONGRESSIONAL CAMPAIGN COMMITTEE HE HAD A DISPUTE WITH POLLSTER ALAN SECREST ONE DAY MR SECREST OPENED A BOX SENT TO HIS OFFICE AND FOUND A DEAD FISH THE MAFIA DEATH SYMBOL ASKED ABOUT THE INCIDENT MR EMANUEL NOTES THAT HE WASN'T THE ONLY PERSON INVOLVED IN SENDING THE FISH AND COMPLAINS THAT AN ERROR IN A SECREST POLL COST DEMOCRATS A HOUSE ELECTION BUT HE DOESN'T DUCK RESPONSIBILITY I SIGNED THE NOTE 9306180118 930618 FISCHER IMAGING SETTLES SUIT DENVER FISCHER IMAGING CORP SAID IT SETTLED A CIVIL LAWSUIT THAT WILL REDUCE FISCAL SECONDQUARTER EARNINGS ABOUT FOUR CENTS A SHARE A COMPANY SPOKESWOMAN SAID THE SUIT RELATED TO A PRODUCT SALES TRANSACTION THE CUSTOMER FELT THE PRODUCT WASN'T UP TO HIS SPECIFICATIONS SHE SAID THE MAKER OF XRAY IMAGING PRODUCTS REPORTED EARNINGS OF 970770 OR 18 CENTS A SHARE IN THE YEAREARLIER PERIOD ENDED JULY 4 9306180117 930618 BUSINESS BRIEF PACIFIC TECHNOLOGY VENTURE FUND VENTURECAPITAL FUND IS SET WITH A PARTNER IN SHANGHAI PACIFIC TECHNOLOGY VENTURE FUND INC A VENTURECAPITAL FUND BASED IN BOSTON SAID IT FORMED A VENTURECAPITAL FUND WITH A CHINESE CONCERN TO INVEST IN TECHNOLOGYRELATED ENTERPRISES IN THE SHANGHAI AREA PACIFIC TECHNOLOGY AND ITS SHANGHAIBASED PARTNER SCIENCE & TECHNOLOGY INVESTMENT CO EACH WILL CONTRIBUTE HALF THE FUND'S INITIAL CAPITAL OF 20 MILLION PACIFIC SAID PACIFIC TECHNOLOGY ADDED THAT THE JOINT VENTURE IS THE FIRST SUCH INTERNATIONAL TECHNOLOGY FUND AUTHORIZED IN CHINA PACIFIC TECHNOLOGY WAS FORMED IN 1981 TO INVEST IN ASIAN TECHNOLOGY CONCERNS BY PATRICK J MCGOVERN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF INTERNATIONAL DATA GROUP A BOSTON INFORMATIONSERVICES CONCERN INTERNATIONAL DATA WILL BE AN INVESTOR IN THE NEW FUND CALLED SHANGHAI PACIFIC TECHNOLOGY VENTURE FUND AND MR MCGOVERN WILL SERVE ON ITS BOARD PACIFIC TECHNOLOGY SAID 9306180116 930618 BUSINESS BRIEF RAMSAY HEALTH CARE INC CHARGE EXPECTED TO REDUCE NET INCOME FOR FISCAL YEAR RAMSAY HEALTH CARE INC SAID IT EXPECTS TO TAKE A NONCASH CHARGE OF 8 MILLION IN THE FOURTH QUARTER ENDING JUNE 30 THE NEW ORLEANSBASED PSYCHIATRIC SERVICES COMPANY SAID THE CHARGE COMBINED WITH THE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING STANDARDS WILL RESULT IN A LOW BUT POSITIVE NET INCOME FOR ITS CURRENT FISCAL YEAR FOR FISCAL 1992 RAMSAY HAD NET INCOME OF 59 MILLION OR 75 CENTS A SHARE ON 1369 MILLION OF REVENUE THE 1992 RESULTS INCLUDE A 22 MILLION RESTRUCTURING CHARGE THE 8 MILLION CHARGE RELATES TO A WRITEDOWN ON THE ASSETS OF TWO INPATIENT FACILITIES AS WELL AS DISCONTINUING CERTAIN DEVELOPMENT PROJECTS THE TWO HOSPITALS BEING REVALUED ARE ON THE BLOCK SAID RAMSAY THE COMPANY IS CURRENTLY NEGOTIATING WITH CAPE FEAR VALLEY MEDICAL CENTER OF FAYETTEVILLE NC FOR THE SALE OF RAMSAY'S CUMBERLAND HOSPITAL A 175BED PSYCHIATRIC FACILITY THE OTHER HOSPITAL IS CURRENTLY LEASED FOR A YEAR WITH A PURCHASE OPTION THE SALE OF THE TWO HOSPITALS WILL BRING NET PROCEEDS OF ABOUT 15 MILLION WHICH WILL BE USED TO REDUCE LONGTERM DEBT SAID RAMSAY 9306180115 930618 UNIVERSITY OF MICHIGAN STUDY ATTEMPTS TO MAP FACE OF SANDWICH GENERATION' BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICAN WORKERS BETWEEN 51 AND 61 YEARS OLD ARE AN UNHAPPY LOT THEY FRET OVER THEIR PENSIONS AND WITH GOOD REASON SINCE TWO IN FIVE WILL HAVE NO RETIREMENT MONEY OTHER THAN FROM SOCIAL SECURITY THEY WOULDN'T MIND CUTTING BACK TO PARTTIME WORK BUT THEIR COMPANIES WON'T LET THEM TAKE LESS DEMANDING JOBS WITH LESS PAY THEY OFTEN WON'T LOOK FOR NEW JOBS BECAUSE THEY WORRY ABOUT LOSING INSURANCE AND PENSIONS AND MANY ESPECIALLY WOMEN SPEND A LOT OF TIME TAKING CARE OF PARENTS KIDS OR GRANDKIDS SUCH IS THE LIFE OF THE SANDWICH GENERATION THE SEGMENT OF AMERICAN SOCIETY THAT IS NEAR RETIREMENT BUT NOT QUITE READY EITHER FINANCIALLY OR EMOTIONALLY THE PORTRAIT OF THE GENERATION EMERGES IN AN AMBITIOUS 12600PERSON SURVEY ISSUED BY THE UNIVERSITY OF MICHIGAN'S INSTITUTE FOR SOCIAL RESEARCH THE PROJECT FINANCED BY THE NATIONAL INSTITUTE ON AGING AND THE NATIONAL INSTITUTES OF HEALTH WILL TRACK THESE PEOPLE OVER THE NEXT 12 YEARS AS THEY GO THROUGH RETIREMENT TO SEE HOW AND WHY THEY MAKE THEIR DECISIONS THE SURVEY FEATURED 90MINUTE INTERVIEWS WITH MOST OF THE PARTICIPANTS TWOTHIRDS OF MEN BETWEEN THE AGES OF 55 AND 64 AND NEARLY HALF OF WOMEN IN THAT GROUP ARE STILL IN THE WORK FORCE ACCORDING TO THE BUREAU OF LABOR STATISTICS THE UNIVERSITY OF MICHIGAN SURVEY TRIES TO PIECE TOGETHER A PICTURE OF HOW THE 24 MILLION AMERICANS NEAR THAT AGE RANGE SEE THEIR FUTURE SOME WOULD HAVE YOU BELIEVE THAT MOST AMERICANS NEARING RETIREMENT AGE ARE GETTING READY TO HEAD TO PALM BEACH FOR EVENING COCKTAILS AT THE CLUB SAID SEN TOM HARKIN THE IOWA DEMOCRAT WHO HEADS THE SENATE LABOR HEALTH AND HUMAN SERVICES SUBCOMMITTEE BUT THIS STUDY SHOWS HOW VULNERABLE MILLIONS OF OLDER AMERICANS ARE TO DECLINING HEALTH AND INCOME ACCORDING TO THE STUDY ABOUT TWO OF EVERY FIVE RESPONDENTS WILL HAVE NO PENSION INCOME AT ALL INDIVIDUALS WITH THE LOWEST WAGES ARE 10 TIMES LESS LIKELY TO HAVE A PENSION THAN THOSE WITH THE HIGHEST WAGES NEARLY 14 OF THE GROUP OR ABOUT 45 MILLION PEOPLE DON'T HAVE ANY HEALTH INSURANCE AND THAT GROUP INCLUDES MORE THAN TWICE AS MANY BLACKS AS WHITES INSURANCE IS A MAJOR CONCERN IN JOB SELECTION AMONG THE GROUP SURVEYED ALMOST TWOTHIRDS SAID THEY WOULDN'T LOOK INTO ANOTHER JOB WHY NOT BECAUSE THEY MIGHT LOSE THEIR PENSION OR HEALTH BENEFITS A THIRD OF THAT GROUP SAID AS A RESULT MANY EXPECT TO KEEP WORKING AT THEIR CURRENT JOBS WITH MORE THAN A THIRD EXPECTING TO WORK FULLTIME AFTER AGE 62 ONE OF THE SURVEY'S MORE INTRIGUING FINDINGS IS HOW MANY OF THE AGE GROUP WANT TO SHORTEN THEIR WORK SCHEDULES BUT DON'T BELIEVE THEY CAN NEARLY THREEQUARTERS OF THE GROUP WANT TO DO SOME WORK RATHER THAN STOP COMPLETELY WHEN THEY RETIRE BUT 66 THINK THEIR EMPLOYERS WON'T LET THEM MOVE TO EASIER JOBS FOR LESS PAY THERE ARE A LOT OF PEOPLE IN THE WORK FORCE WHO HAVE A LOT OF INTEREST IN SOMETHING OTHER THAN FULLTIME JOBS SAID THOMAS JUSTER WHO HEADED THE STUDY I DON'T THINK OUR INSTITUTIONS ADAPT WELL TO SERVE THAT POOR HEALTH IS THE SINGLE MOST IMPORTANT REASON WHY NONWORKING MEMBERS OF THE STUDY GROUP LEFT THEIR LAST JOB POOR HEALTH CONDITIONS ARE DRIVING A LOT OF PEOPLE OUT OF THE WORK FORCE MR JUSTER SAID THE STUDY COMES AT A TIME WHEN THE CLINTON ADMINISTRATION AND CONGRESS ARE TRYING TO REFORM THE NATION'S HEALTHCARE SYSTEM TO ASSURE THAT ALL AMERICANS HAVE INSURANCE BENEFITS SEN HARKIN ARGUED THAT THE GOVERNMENT SHOULD FOCUS ON MEDICAL RESEARCH AND PREVENTION TO HELP THIS AGE GROUP AND THE ELDERLY IF PREVENTION AND RESEARCH ARE HIGH PRIORITIES HE SAID WE CAN REDUCE ILLNESS AND DISABILITY HOLD DOWN HEALTH COSTS INCREASE THE PRODUCTIVITY OF OUR WORK FORCE AND IMPROVE THE QUALITY OF LIFE FOR OLDER AMERICANS AND AMERICANS NEARING RETIREMENT AGE IF THE STUDY HAS A SILVER LINING IT IS THE GENEROSITY OF THE GROUP BOTH TOWARD THEIR PARENTS AND THEIR DESCENDANTS MORE THAN A THIRD OF THE PEOPLE IN THE SURVEY GAVE FINANCIAL ASSISTANCE DEFINED AS AT LEAST 500 TO A CHILD LAST YEAR AT THE SAME TIME ABOUT 40 OF THOSE WHO HAVE GRANDCHILDREN PROVIDE MORE THAN 100 HOURS OF GRANDCHILD CARE A YEAR HELP GOES TO THE OLDER GENERATION TOO ALTHOUGH IN SMALLER AMOUNTS WHILE WOMEN ARE MORE LIKELY TO GIVE TIME TO THEIR PARENTS MEN ARE MORE LIKELY TO PROVIDE FINANCIAL HELP THE STUDY SHOWS 9306180114 930618 BUSINESS BRIEF ZAPATA CORP GAIN ON TIDEWATER STOCK SALE WILL BE TAKEN THIS QUARTER ZAPATA CORP HOUSTON SAID IT WILL RECORD A 33 MILLION PRETAX GAIN IN THE FISCAL THIRD QUARTER ENDING JUNE 30 THE GAIN WHICH IS ABOUT 23 CENTS A SHARE ON A PRETAX BASIS RESULTED FROM ZAPATA'S SALE OF TIDEWATER INC COMMON STOCK ZAPATA REDUCED ITS STAKE IN TIDEWATER TO 91 FROM 156 BY SELLING ABOUT 35 MILLION SHARES AT 2125 A SHARE PROCEEDS OF ABOUT 73 MILLION WILL BE USED TO PURCHASE ENERGY INDUSTRIES INC THE NATURAL GAS COMPRESSION OPERATIONS OF SAN ANTONIOBASED HOLT COS ZAPATA SAID IN LAST YEAR'S FISCAL THIRD QUARTER ZAPATA A NATURAL GAS AND OIL PRODUCTION AND SERVICES COMPANY WITH INTERESTS IN FISH MEAL EARNED 21 MILLION OR TWO CENTS A SHARE ON 236 MILLION IN REVENUE 9306180113 930618 BUSINESS BRIEF LIBERTY CORP NORTH AMERICAN NATIONAL APPROVES FIRM'S REVISED BID NORTH AMERICAN NATIONAL CORP SAID ITS BOARD APPROVED A REVISED OFFER TO BE ACQUIRED BY LIBERTY CORP GREENVILLE SC FOR 518 MILLION UNDER THE REVISED LETTER OF INTENT NORTH AMERICAN SHAREHOLDERS WOULD RECEIVE 1475 IN CASH FOR EACH SHARE OF NORTH AMERICAN COMMON STOCK THE FIGURE IS DOWN 3 FROM 1525 A SHARE PROPOSED IN THE ORIGINAL AGREEMENT SIGNED IN EARLY APRIL THE COMPANY SAID NORTH AMERICAN CURRENTLY HAS 3512632 COMMON SHARES OUTSTANDING NORTH AMERICAN COLUMBUS OHIO IS A LIFE INSURANCE HOLDING COMPANY LIBERTY IS A PUBLICLY TRADED HOLDING COMPANY IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY NORTH AMERICAN SHARES ROSE 125 CENTS TO 13875 WHILE LIBERTY SHARES ROSE 125 CENTS TO 2975 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING NORTH AMERICAN CHAIRMAN GEORGE R MANSER SAID THE ACQUISITION REMAINS SUBJECT TO COMPLETION OF A DEFINITIVE AGREEMENT AND APPROVALS BY NORTH AMERICAN SHAREHOLDERS THE COMPANIES' BOARDS AND REGULATORS AMONG OTHER THINGS 9306180112 930618 MARKETING & MEDIA TCI WINS AGREEMENTS WITH 14 STATIONS FOR CABLE TV BROADCASTS WITHOUT FEE BY MARK ROBICHAUX AND ELIZABETH JENSEN STAFF REPORTERS OF THE WALL STREET JOURNAL IN ITS SECOND BIG ROUND OF AGREEMENTS WITH BROADCASTERS UNDER THE NEW CABLE LAW CABLE GIANT TELECOMMUNICATIONS INC SAID IT MADE DEALS WITH 14 TV STATIONS TO CARRY THEIR SIGNALS WITHOUT PAYING THEM A FEE THE NEW DEALS WITH TWO STATION GROUPS AND TWO INDIVIDUAL STATIONS REINFORCES TCI'S VOW NOT TO PAY CASH TO CARRY BROADCAST CHANNELS THOUGH IT WILL IN SOME CASES PAY CASH FOR NEW CABLE CHANNELS PROVIDED BY BROADCASTERS THE NEW AGREEMENTS ALSO SET THE STAGE FOR COMING NEGOTIATIONS AND COMPROMISES BETWEEN THOUSANDS OF CABLE SYSTEMS AND BROADCAST STATIONS THE RETRANSMISSION CONSENT PROVISION OF THE NEW CABLE LAW AS IT IS KNOWN IN BUREAUCRATIC JARGON ALLOWS BROADCAST STATIONS FOR THE FIRST TIME TO DEMAND PAYMENT FROM CABLE OPERATORS TO RETRANSMIT THEIR SIGNALS YESTERDAY WAS THE DEADLINE TO MAKE DEMANDS FOR SUCH PAYMENTS TELECOMMUNICATIONS BASED IN ENGLEWOOD COLO ALREADY HAS REACHED A DEAL WITH FOX BROADCASTING CO A UNIT OF AUSTRALIAN NEWS CORP TO FORGO CARRIAGE FEES FOR FOX'S TV STATIONS IN EXCHANGE FOR A NEW FOX CABLE NETWORK THAT WOULD RECEIVE A SEPARATE FEE FROM TCI CABLE SYSTEMS IN THE DEAL SIGNED YESTERDAY ALL THE STATIONS WILL BE CARRIED BY THE CABLE OPERATORS BUT IN LIEU OF FEES TIMES MIRROR BROADCASTING CO'S FOUR TV STATIONS EACH WILL START ITS OWN LOCAL CABLE CHANNEL WHICH COULD BE LAUNCHED ON THE TCI SYSTEMS AS EARLY AS THIS YEAR UNLIKE FOX THOUGH THE SUBSIDIARY OF LOS ANGELESBASED TIMES MIRROR CO WON'T GET PAID PERSUBSCRIBER LICENSE FEES FOR THE CABLE CHANNELS IN PITTSBURGH TCI SIGNED AN AGREEMENT WITH WPXI AN NBC AFFILIATE OWNED BY COX ENTERPRISES INC TO BECOME PART OWNER IN A NEWS AND INFORMATION CABLE CHANNEL WITH WPXI HOLDING THE MAJORITY STAKE AS IN ITS DEAL WITH FOX TCI ALSO WILL PAY AN UNDISCLOSED PERHOME SUBSCRIPTION FEE FOR THE NEW CABLE CHANNEL WHICH WILL INITIALLY CARRY REBROADCASTS OF WPXI NEWS AND MAY BE CARRIED ON OTHER CABLE SYSTEMS IN THE AREA JAY KRIEGEL CBS INC SENIOR VICE PRESIDENT SAID THE DEALS HAD LITTLE RELEVANCE BECAUSE THEY WERE STRUCK WITH COMPANIES WITH LARGE CABLE HOLDINGS COX AND TIMES MIRROR WE ASSUME THESE WERE ALL DEALS DONE AT THE NCTA NATIONAL CABLE TELEVISION ASSOCIATION BOARD MEETING LAST WEEK HE SAID IN THE OTHER TWO DEALS CHRISCRAFT INDUSTRIES' EIGHTSTATION CHRISCRAFT/UNITED TELEVISION GROUP RECEIVED DESIRABLE CHANNEL PLACEMENT THROUGHOUT TCI SYSTEMS AND THE PROMISE OF CONTINUED AID FROM TCI IN BOOSTING ITS STATION SIGNALS LONG DISTANCES CHRISCRAFT IS BASED IN NEW YORK FINALLY WPWR IN CHICAGO ALSO GOT DESIRABLE CHANNEL POSITIONING BOB THOMSON A SPOKESMAN FOR TCI SAID THE COMPANY MAY NOT BE ABLE TO FINISH ITS NEGOTIATIONS BY OCTOBER WHEN THE NEW LAW TAKES EFFECT THE LINE IS ALREADY OUT OUR FRONT DOOR AND OUT TO THE STREET THERE WILL NOT BE PHYSICAL TIME TO NEGOTIATE ALL THE AGREEMENTS THE BROADCASTERS MAY HAVE TO GRANT US EXTENSIONS OR TEMPORARY RETRANSMISSION CONSENT 9306180111 930618 PRUDENTIAL SECURITIES PARTNERSHIPS ARE NOW SUBJECT OF US CRIMINAL INQUIRY BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE US ATTORNEY'S OFFICE IN MANHATTAN HAS LAUNCHED A CRIMINAL INVESTIGATION OF PRUDENTIAL SECURITIES INC'S ENERGYPARTNERSHIP PRACTICES PEOPLE FAMILIAR WITH THE MATTER SAY PROSECUTORS ARE TRYING TO DETERMINE AMONG MANY OTHER THINGS WHETHER THERE WERE ANY ILLEGAL PAYMENTS MADE TO PRUDENTIAL SECURITIES EMPLOYEES BY ENTITIES INCLUDING GRAHAM ROYALTY LTD A COVINGTON LA OIL AND GAS FIRM THAT ACTED ALONG WITH PRUDENTIAL AS THE GENERAL PARTNER OF THE ENERGY PARTNERSHIPS THE PEOPLE SAID THE BROAD CRIMINAL INQUIRY BEGUN THIS WEEK MARKS A NEW PHASE OF PRUDENTIAL'S PARTNERSHIP HEADACHES THE PRUDENTIAL INSURANCE CO OF AMERICA UNIT ALREADY FACES SEPARATE INQUIRIES BY THE SECURITIES AND EXCHANGE COMMISSION AND STATE SECURITIES REGULATORS INTO WHETHER IT IMPROPERLY SOLD ABOUT 6 BILLION OF LIMITED PARTNERSHIPS TO INVESTORS PRUDENTIAL WAS A BIG SELLER OF LIMITED PARTNERSHIPS MANY OF WHICH HAVE SOURED AND TRIGGERED INVESTOR LAWSUITS THESE INCLUDE A BIG CLASS ACTION PENDING IN A NEW ORLEANS FEDERAL COURT THE US ATTORNEY'S OFFICE AS IS ITS PRACTICE DECLINED TO CONFIRM OR DENY THE EXISTENCE OF AN INVESTIGATION A SPOKESMAN AT PRUDENTIAL SECURITIES THE NATION'S FOURTHLARGEST BROKERAGE FIRM DECLINED TO COMMENT ON THE MATTER THE CRIMINAL INQUIRY COMES AMID THE DISCLOSURE IN COURT DOCUMENTS OF A GRAHAM DOCUMENT THAT APPEARS TO PROPOSE A PAYMENT TO AN ENTITY CONTROLLED BY JAMES DARR THEN PRUDENTIAL'S PARTNERSHIP CHIEF CONTINGENT ON PRUDENTIAL ACQUIESCING IN THE CREATION OF A GRAHAM INCOME FUND WITHOUT ITS PARTICIPATION WE REVIEWED PLANS FOR FILING A 200 MILLION GRAHAM INCOME FUND AND WILL TELL JIM DARR OF OUR PLANS ACCORDING TO MINUTES OF A JUNE 1988 GRAHAM MANAGEMENT MEETING WRITTEN BY ANTON RICE GRAHAM'S CHIEF FINANCIAL OFFICER WE WILL RELATE GRAHAM'S 500000 INDICATION OF INTEREST IN DIETCO A DARRCONTROLLED ENTERPRISE TO A SUCCESSFUL FILING OF THE NEW INCOME FUND THIS APPEARS TO BE A QUID PRO QUO BASED ON A DECISION BY A PRU PERSON FOR GRAHAM'S BENEFIT ASSERTS CLINT KRISLOV A CHICAGO ATTORNEY WITH CASES AGAINST PRUDENTIAL ADDS GEORGE F RIESS A NEW ORLEANS ATTORNEY WHO ALSO REPRESENTS CLIENTS WITH CLAIMS AGAINST PRUDENTIAL I DON'T KNOW HOW YOU CAN READ IT ANY OTHER WAY NONSENSE SAYS PAUL GRAND A NEW YORK LAWYER FOR MR DARR JIM DARR NEVER ASKED GRAHAM TO INVEST NEVER ASKED TONY RICE TO INVEST IN DIET FRANCHISES MR GRAND SAYS ADDING THAT DIETCO NEVER FORMALLY EXISTED MR DARR WOULD HAVE TO HAVE BEEN BRAIN DEAD TO ENTERTAIN THE NOTION OF A HALFMILLIONDOLLAR PAYOFF THAT COULD JEOPARDIZE HIS ALREADY LUCRATIVE PARTNERSHIP CAREER AT PRUDENTIAL MR GRAND SAYS MR DARR WHO LEFT PRUDENTIAL IN LATE 1988 VEHEMENTLY OPPOSED THE GRAHAM INCOME FUND MR GRAND ADDS STEPHEN H KUPPERMAN AN ATTORNEY FOR GRAHAM AND MR RICE NOTES THAT NO PAYMENT EVER WAS MADE AND THE FUND SPONSORED SOLELY BY GRAHAM NEVER WAS SOLD THERE WAS NO QUID PRO QUO MR KUPPERMAN SAYS THERE WAS NO ATTEMPT TO INFLUENCE ANYBODY INDEED MR RICE IN TESTIMONY HE MADE LAST WEEK IN THE CLASS ACTION SAID THERE WAS NEVER ANY LINKAGE BETWEEN THE GRAHAM FUND FILING AND ANY PAYMENT HIS MINUTES INCLUDED AN ERRONEOUS PHRASE SUGGESTING SUCH A LINKAGE MR RICE TESTIFIED 9306180110 930618 PENNEY GETS AT&T NETWORK DALLAS JC PENNEY CO SAID AMERICAN TELEPHONE & TELEGRAPH CORP IS CONSTRUCTING A MULTIMILLIONDOLLAR HIGHSPEED DIGITAL DATA TRANSMISSION NETWORK THAT WILL LINK THE RETAILER'S 1300 US STORES WITH ITS THREE PRIMARY DATA CENTERS AROUND THE COUNTRY THE NETWORK WILL SPEED EXISTING DATA TRANSMISSIONS SUCH AS POINTOFPURCHASE DATA CREDIT AUTHORIZATION AND INVENTORY CONTROL INFORMATION AS WELL AS FOR OTHER RETAILRELATED TASKS THE COMPANY WOULDN'T BE MORE SPECIFIC CONSTRUCTION OF THE PROJECT HAS ALREADY STARTED WITH 150 STORES BEING ADDED EACH MONTH THE COMPANY SAID THE NETWORK IS EXPECTED TO BE COMPLETED IN OCTOBER 9306180109 930618 TIMBER PROPOSALS MAY COME NEXT WEEK BUT ENVIRONMENTALISTS ARE UPSET NOW BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHITE HOUSE AIDES ARE SCHEDULED TO GIVE PRESIDENT CLINTON THEIR RECOMMENDATIONS FOR A TIMBER PLAN AS EARLY AS NEXT WEEK BUT ENVIRONMENTALISTS ALREADY ARE CLAIMING IT WON'T PROTECT THE SPOTTED OWL AT A JOINT NEWS CONFERENCE YESTERDAY KARIN SHELDON PRESIDENT OF THE WILDERNESS SOCIETY SAID THAT THE PLAN CONFIRMS OUR VERY WORST FEARS IT PUTS TIMBER HARVESTS FIRST AND THE PEOPLE AND ECOSYSTEMS OF THE PACIFIC NORTHWEST LAST SHE WAS JOINED BY REPRESENTATIVES OF THE NATIONAL WILDLIFE FEDERATION THE SIERRA CLUB THE NATIONAL AUDUBON SOCIETY AND THE WESTERN ANCIENT FOREST CAMPAIGN THE ENVIRONMENTALISTS SAID THEIR INFORMATION WAS BASED MOSTLY ON A BRIEFING THEY HAD AT THE WHITE HOUSE WITH TOP OFFICIALS WORKING ON THE RECOMMENDATIONS A WHITE HOUSE SPOKESWOMAN HOWEVER ACCUSED THE ENVIRONMENTALISTS OF RESPONDING TO RUMORS AND SHE INSISTED THAT NO FINAL DECISIONS HAVE BEEN MADE ON WHAT TO RECOMMEND TO THE PRESIDENT OTHER ADMINISTRATION OFFICIALS SAID THE ENVIRONMENTALISTS WERE GIVING A DISTORTED PICTURE OF THE PACKAGE THE OFFICIALS HOWEVER WOULDN'T DISCUSS WHAT THE PACKAGE ENTAILS OR ELABORATE ON HOW THE ENVIRONMENTALISTS WERE DISTORTING IT AMONG OTHER PROVISIONS THE GROUPS SAID THE WHITE HOUSE OFFICIALS ARE READY TO RECOMMEND THAT PRESIDENT CLINTON ACCEPT A PACKAGE THAT WOULD ALLOW FOR THE CUTTING OF 18 BILLION TO TWO BILLION BOARD FEET OF TIMBER A YEAR MORE THAN IS ALLOWED CURRENTLY BUT CONSIDERABLY LESS THAN WAS ALLOWED ANNUALLY IN THE 1980S THEY SAID THE PLAN CALLS FOR SUCH AMOUNTS TO BE GRADUALLY REDUCED AFTER TWO YEARS IT WASN'T CLEAR HOWEVER EXACTLY WHAT BASE WAS BEING CONSIDERED THE PACKAGE ALSO WOULD INCLUDE PROVISIONS AIMED AT PREVENTING LITIGATION BY CONSERVATION GROUPS OR OTHERS SEEKING TO THWART IT THE GROUPS SAID IN THE PAST VARIOUS LAWMAKERS HAVE INSISTED ON A PROVISION DESIGNED TO MAKE SURE THE AGREEDUPON LEVEL OF LOGGING COULD GO FORWARD MISSING FROM THE PLAN WOULD BE THE ESTABLISHMENT OF A LARGE PERMANENT RESERVE WHERE LOGGING WOULDN'T BE PERMITTED THE ENVIRONMENTALISTS CLAIM THEY SAID THAT WHILE AN AREA MIGHT BE DESIGNATED AS A RESERVE PRACTICES SUCH AS SALVAGE LOGGING IN WHICH DAMAGED OR DISEASED TREES ARE CUT AND THE THINNING OF FORESTS WOULD BE PERMITTED THE GROUPS SAID THEY PLAN TO REQUEST A MEETING WITH PRESIDENT CLINTON TO TRY TO HEAD OFF THE RECOMMENDATIONS ADMINISTRATION OFFICIALS SAID MR CLINTON PROBABLY WILL UNVEIL HIS TIMBER PACKAGE LATE THIS MONTH OR IN EARLY JULY 9306180108 930618 THE TAX PACKAGE ADVANCES SMALL FIRMS THE POOR HOSPITALS ARE LOSERS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE FINANCE COMMITTEE DEMOCRATS SACRIFICED THE INTERESTS OF THE POOR SMALL BUSINESSES HOSPITALS DOCTORS SOME BIG CAPITALINTENSIVE COMPANIES REAL ESTATE INVESTORS AND LOBBYISTS IN THEIR SEARCH FOR A COMPROMISE DEFICITREDUCTION PLAN ALL THOSE GROUPS WOULD FARE WORSE UNDER THE SENATE VERSION OF THE TAX BILL THAN THEY WOULD UNDER THE BILL THAT NARROWLY PASSED THE HOUSE LAST MONTH OF COURSE SOME MAY RECOVER THE LOST GROUND ONCE THE BILL GETS TO A HOUSESENATE CONFERENCE THE BIG WINNERS IN THE SENATE PANEL WERE OIL COMPANIES UTILITIES AND MAKERS OF ENERGYINTENSIVE PRODUCTS WHICH FOUGHT PRESIDENT CLINTON'S ENERGY TAX THE RICH DID WELL TOO THEIR TAXES WOULDN'T GO UP QUITE AS MUCH THIS YEAR AS THE PRESIDENT AND THE HOUSE PROPOSED THOUGH THEY STILL WOULD FACE HEFTY INCREASES THE FINANCE COMMITTEE DEMOCRATS DEMONSTRATED THAT THE SPIRIT OF THE 1986 TAX REFORM ACT WHICH LOWERED TAX RATES AND CLOSED LOOPHOLES ISN'T COMPLETELY DEAD THEY SURPRISED BUSINESS LOBBYISTS AND SOME LIBERALS BY GOING ALONG WITH THE HOUSE AND AGREEING TO INCREASE THE CORPORATE INCOMETAX RATE NOW 34 ONLY ONE PERCENTAGE POINT TO 35 MR CLINTON ORIGINALLY PROPOSED A 36 RATE AND SOME SENATE DEMOCRATS WANTED TO DO JUST THAT MOREOVER PRESSED TO FIND MONEY THE COMMITTEE REJECTED A NUMBER OF NARROW TAX BREAKS THAT THE HOUSE APPROVED FOR BUSINESSES AND IT WATERED DOWN OTHERS STILL THE COMMITTEE FAVORED SOME BUSINESS INTERESTS AT THE EXPENSE OF OTHERS JERRY JASINOWSKI PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS HESITATED YESTERDAY WHEN ASKED FOR AN OPINION ON THE COMPROMISE REACHED IN THE SENATE FINANCE COMMITTEE DO I TALK ABOUT THE GLASS THAT'S HALF FULL OR THE GLASS THAT'S HALF EMPTY HE ASKED THE POOR THE FINANCE COMMITTEE VERSION WOULD CURTAIL MR CLINTON'S PROPOSAL TO ENLARGE THE EARNEDINCOME TAX CREDIT FOR WORKING POOR FAMILIES AND REJECT HIS PLAN TO EXTEND THE CREDIT TO PEOPLE WITHOUT CHILDREN THE PANEL ALSO WOULD DROP MR CLINTON'S PLAN TO MAKE THE FOODSTAMP PROGRAM MORE GENEROUS AND REJECT THE CLINTON PLAN TO CREATE TAX INCENTIVES FOR INVESTMENT IN DEPRESSED EMPOWERMENT ZONES THE DEFICITREDUCTION PLAN STILL WOULD HIT THE RICH MUCH HARDER THAN THE MIDDLE CLASS BUT ROBERT GREENSTEIN OF THE CENTER ON BUDGET & POLICY PRIORITIES SAID IT TAXES A SUBSTANTIAL NUMBER OF POOR WORKERS DEEPER INTO POVERTY AND IT FAILS TO ACHIEVE THE PRESIDENT'S GOAL OF LIFTING FAMILIES OF FOUR WITH MINIMUMWAGE WORKERS OUT OF POVERTY THE HOUSE BILL WOULD REDUCE TAXES ON THOSE WITH INCOME UNDER 10000 BY ABOUT 13 BILLION A YEAR THE SENATE BILL WOULD REDUCE THEM BY ONLY 691 MILLION SMALL BUSINESS THE SENATE COMMITTEE WOULD ALLOW BUSINESSES TO WRITE OFF 15000 IN EQUIPMENT PURCHASES EACH YEAR UP FROM 10000 THIS YEAR BUT SHY OF THE 25000 SET IN THE HOUSE BILL THE PANEL REJECTED A PROPOSAL BY SEN DALE BUMPERS D ARK TO HALVE THE CAPITALGAINS TAX RATE FOR STOCK PURCHASED FROM CERTAIN SMALL BUSINESSES AND HELD FOR FIVE YEARS RESEARCH THE COMMITTEE WOULD EXTEND THE RESEARCHANDDEVELOPMENT TAX CREDIT FOR ONLY ONE YEAR BEGINNING JULY 1 1993 THE HOUSE BILL WOULD REINSTATE THE CREDIT RETROACTIVELY TO JULY 1 1992 AND MAKE IT PERMANENT SEPARATELY THE SENATE COMMITTEE ACCEPTED A HOUSE FORMULA WHICH WOULD BE MORE GENEROUS TO BUSINESS THAN THE CLINTON VERSION FOR ALLOCATING RESEARCH EXPENDITURES BETWEEN US AND FOREIGN OPERATIONS BUT THE SENATE PANEL WOULD PUT THE FORMULA IN PLACE FOR JUST ONE YEAR REAL ESTATE THE SENATE COMMITTEE SCALED BACK A HOUSE PROVISION THAT WOULD GIVE REALESTATE PROFESSIONALS THE PASSIVE LOSS DEDUCTION THEY LOST IN 1986 INSTEAD IT ACCEPTED MR CLINTON'S NARROWER PROPOSAL THE SENATE ALSO REJECTED A HOUSEBACKED MEASURE THAT WOULD TREAT DEBT RESTRUCTURINGS MORE FAVORABLY CAPITALINTENSIVE COMPANIES THE PANEL AGREED TO LIGHTEN THE ALTERNATIVE MINIMUM TAX WHICH CONGRESS CREATED IN 1986 TO MAKE SURE THAT COMPANIES PAY SOME TAX NO MATTER HOW MANY CREDITS THEY CLAIM BUT THE SENATE PANEL'S BILL WOULD BE LESS GENEROUS THAN THE HOUSE WAS TAKEOVERS THE COMMITTEE BILL WOULD ALLOW COMPANIES TO WRITE OFF 75 OF THE GOODWILL AND OTHER INTANGIBLE ASSETS ACQUIRED IN TAKEOVERS OVER A 14YEAR PERIOD CURRENTLY THEY CAN'T WRITE THEM OFF THE HOUSE BILL WOULD LET THEM WRITE OFF 100 PETER MERRILL OF PRICE WATERHOUSE & CO SAYS THE SENATE PROVISION IS EQUIVALENT TO A 23YEAR WRITEOFF LOBBYISTS THE COMMITTEE BILL WOULD RESTRICT TAX DEDUCTIONS FOR LOBBYING EXPENSES MORE THAN THE HOUSE BILL WOULD THE MIDDLE CLASS THE TAX INCREASE ON THE MIDDLE WOULD BE SMALLER UNDER THE SENATE FINANCE PANEL'S BILL THAN UNDER THE HOUSE BILL OR MR CLINTON'S PROPOSAL THOSE WITH INCOMES BETWEEN 40000 AND 50000 WOULD PAY 03 MORE OF THEIR INCOME UNDER THE SENATE VERSION COMPARED TO 05 MORE IN THE HOUSE BILL ENERGY AND UTILITY COMPANIES REJECTING MR CLINTON'S ENERGY TAX THE SENATE PANEL ENDED UP WITH A MODEST 43CENTSAGALLON TAX INCREASE THAT ONLY APPLIES TO GASOLINE AND OTHER TRANSPORTATION FUELS SOME OF THE ELDERLY THE SENATE BILL WOULD RAISE THE TAX ON SOCIAL SECURITY BENEFITS ONLY FOR COUPLES WITH INCOMES ABOVE 40000 AND INDIVIDUALS WITH INCOMES ABOVE 32000 THE HOUSE BILL WOULD HIT COUPLES WITH INCOMES ABOVE 32000 AND INDIVIDUALS WITH INCOMES ABOVE 25000 DRUG COMPANIES AT THE INSISTENCE OF SENATE FINANCE CHAIRMAN DANIEL MOYNIHAN D NY AND SEN BILL BRADLEY D NJ THE COMMITTEE BILL WOULD RAISE TAXES ON MANUFACTURERS WITH PLANTS IN PUERTO RICO FAR LESS THAN THE HOUSE WOULD MULTINATIONAL COMPANIES THE SENATE PANEL WOULD WATER DOWN A CLINTONBACKED PROVISION IN THE HOUSE BILL THAT RAISE TAXES ON US COMPANIES WITH PROFITS FROM OVERSEAS OPERATIONS RICK WARTZMAN CONTRIBUTED TO THIS ARTICLE 9306180107 930618 INTERNATIONAL TIETMEYER IS NAMED TO POST OF PRESIDENT AT THE BUNDESBANK FRANKFURT AS EXPECTED HANS TIETMEYER BUNDESBANK VICE PRESIDENT WAS NAMED TO LEAD GERMANY'S POWERFUL CENTRAL BANK THROUGH THE REMAINDER OF THE DECADE AFTER BUNDESBANK PRESIDENT HELMUT SCHLESINGER RETIRES ON OCT 1 ANALYSTS SAID THE SHIFT COULD SOFTEN THE BUNDESBANK'S HARDLINE STANCE ON INTEREST RATES WHICH HAVEN'T BEEN COMING DOWN AS QUICKLY AS BONN AND THE REST OF EUROPE WOULD LIKE YESTERDAY THE COUNCIL AGAIN IGNORED PRESSURE FOR FRESH INTERESTRATE CUTS LEAVING OFFICIAL RATES UNCHANGED BUT ECONOMISTS CAUTIONED AGAINST EXPECTING THE POSTSCHLESINGER BUNDESBANK TO ABANDON ITS CENTRAL ROLE OF HOLDING DOWN INFLATION AND STABILIZING THE GERMAN MARK ESPECIALLY AS BONN'S MULTIBILLIONDOLLAR SPENDING ON GERMAN UNIFICATION SWELLS FISCAL DEFICITS AND PRICES GERMAN FINANCE MINISTRY OFFICIALS SAID FINANCE MINISTER THEO WAIGEL HAS DRAWN UP THE PROPOSAL FOR FORMAL PROMOTION OF MR TIETMEYER 61 YEARS OLD BY THE BONN CABINET AT THIS POINT IT IS PRETTY CERTAIN TO HAPPEN SAID A MINISTRY OFFICIAL THE NAMING OF MR TIETMEYER WAS WIDELY EXPECTED BECAUSE OF HIS CLOSE ASSOCIATION WITH CHANCELLOR HELMUT KOHL HE WILL BE SUCCEEDED AS VICE PRESIDENT BY JOHANN WILHELM GADDUM A FORMER KOHL CONFIDANT AND CURRENTLY THE CAPITAL MARKETS CZAR ON THE BUNDESBANK DIRECTORATE MEMBERS OF THE BUNDESBANK'S SEVENMEMBER DIRECTORATE ARE NAMED BY THE BONN GOVERNMENT TO MAKE UP THE CORE OF THE BANK'S POLICYSETTING CENTRAL BANK COUNCIL WHICH ALSO INCLUDES PRESIDENTS OF THE NINE REGIONAL CENTRAL BANKS WHO ARE APPOINTED BY STATE GOVERNMENTS 9306180106 930618 S&LS POST EARNINGS RISE WASHINGTON THRIFT INSTITUTIONS CONTINUED THEIR FINANCIAL RECOVERY IN THE FIRST QUARTER SHOWING EARNINGS OF 176 BILLION UP 14 FROM A YEAR EARLIER THE OFFICE OF THRIFT SUPERVISION SAID IT WAS THE NINTH STRAIGHT PROFITABLE QUARTER FOR SAVINGSANDLOANS AS THE S&L INDUSTRY RECOVERS FROM A WAVE OF FAILURES THE REGULATORY AGENCY SAID THE EARNINGS REFLECT A DECLINE IN TROUBLED ASSETS AND A WIDER SPREAD BETWEEN THRIFTS' BORROWING COSTS AND THEIR INCOME RETURN ON LOANS IN THE FIRST QUARTER THAT SPREAD WAS 302 PERCENTAGE POINTS OR 029 POINTS GREATER THAN A YEAR EARLIER THE OTS SAID INDUSTRYWIDE PROBLEM ASSETS DECLINED TO 209 BILLION AT THE END OF THE QUARTER FROM 313 BILLION A YEAR EARLIER THE NUMBER OF OTSSUPERVISED THRIFTS FELL TO 1855 FROM 2064 LARGELY FROM FAILURES JONATHAN FIECHTER ACTING OTS DIRECTOR WARNED THAT THE FAVORABLE INTERESTRATE SPREAD IS LIKELY TO COME UNDER PRESSURE AS THE GAP BEGINS TO REFLECT A RECENT TREND OF SOME MORTGAGE LENDING RATES FALLING FASTER THAN S&L'S BORROWING COSTS THE OTS COUNTED 183 PROBLEM THRIFTS AT THE END OF THE FIRST QUARTER DOWN FROM 311 A YEAR EARLIER 9306180105 930618 INTERNATIONAL BAZAAR FOR THE AGGRIEVED PULSATES AS DIPLOMATS MULL HUMAN RIGHTS BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL VIENNA WHAT WITH THE DANCING AZTECS OF MONTEZUMA AND THE MEDITATING MONKS OF VIETNAM AND THE WANDERING KOREAN WOMAN WRAPPED IN A SHEET THE PLIGHT OF THE EAST TIMOR LIBERATION FRONT SEEMED DOOMED TO OBSCURITY UNTIL JOSE RAMOSHORTA A TIMORESE EXILE BEGAN WALLPAPERING BATHROOMS WITH 1000 STICKERS PROCLAIMING FREE XANANA FREE EAST TIMOR BOYCOTT BALI SOON HE WAS JUGGLING APPOINTMENTS WITH A HOST OF CURIOUS DIGNITARIES NOT TO MENTION THREE FOREIGN MINISTERS I FIGURE BATHROOMS ARE THE BEST PLACE TO GET PEOPLE'S ATTENTION HE SAYS FOR A FEW QUIET MOMENTS THEY CAN THINK AND REFLECT ON EAST TIMOR FOR THE FIRST TIME IN 25 YEARS THE UNITED NATIONS HAS SUMMONED THE WORLD TO REFLECT ON THE SAD STATE OF HUMAN RIGHTS AND TO DO IT QUIETLY DIPLOMATIC RULES OF THE GLOBAL GATHERING PROHIBIT FINGERPOINTING AND DISCUSSING INDIVIDUAL CASES OF HUMAN RIGHTS ABUSE SO FAR MOST DIPLOMATS ARE OBEYING EXCEPT FOR THE PALESTINIANS WHO HAD A GO AT THE ISRAELIS THE PAKISTANIS AND INDIANS WHO SKEWERED EACH OTHER THE CHINESE WHO CASTIGATED THE DALAI LAMA AND THE BOSNIANS WHO CAN'T HELP MENTIONING THE SERBS BUT OUTSIDE THE CONFERENCE HALL ALONG THE DANUBE NO SUCH DIPLOMATIC NICETIES ARE OBSERVED AT A BAZAAR OF WHAT'S WRONG WITH THE WORLD TODAY FROM CUBAN GAYS AND LESBIANS AGAINST CASTRO TO THE KASHMIRI LIBERATION FRONT TO WOMEN AGAINST SEXUAL SLAVERY THE AGGRIEVED ARE HAVING THEIR SAY HEY MISTER LET ME TELL YOU ABOUT BHUTAN SAYS JOGEN GAZMERE WHO PUSHES A BOOKLET BHUTAN A SHANGRILA WITHOUT HUMAN RIGHTS INTO AN UNSUSPECTING HAND THE RULING DRUKPA PEOPLE SAYS MR GAZMERE ARE REPRESSING THE CULTURAL RIGHTS OF THE NONDRUKPA INCLUDING ETHNIC NEPALESE JUST LIKE HIM HIS BROTHER RATAN HURRIEDLY PRODUCES A MAP AND LOCATES THE TINY HIMALAYAN KINGDOM BETWEEN CHINA AND INDIA BHUTAN IS SO LITTLE KNOWN DESPAIRS RATAN TO HELP THEIR CAUSE THE BROTHERS WHO EACH SPENT MORE THAN TWO YEARS IN JAIL BEFORE TAKING REFUGE IN NEPAL ARE PEDDLING STOP HUMAN RIGHTS VIOLATIONS IN BHUTAN TSHIRTS FOR 10 THEY ARE GOING SLOWLY ADMITS JOGEN IS 10 TOO MUCH IS THAT WHY THE REASON IS PROBABLY TOO MUCH COMPETITION ALL AROUND THE GAZMERE BROTHERS THE ILLS OF THE WORLD JOSTLE FOR ATTENTION ACTIVISTS FROM IRAQ IRAN CROATIA KUWAIT INDIA TURKEY AND TUNISIA HAVE COME BEARING GRUESOME COLOR PICTURES OF BRUTALITIES IN THEIR HOMELANDS SIKHS BOSNIANS AND KURDS CAME WITH VIDEO CASSETTES JOSEPH PERARD A HAITIAN LIVING IN MONTREAL ARRIVED WITH A LIFESIZE CARDBOARD CUTOUT OF A HAITIAN SUGAR CANE CUTTER HAITIAN WORKERS ARE TREATED LIKE SLAVES ON THE PLANTATIONS OF THE DOMINICAN REPUBLIC HE SAYS HANDING OUT BROCHURES FROM THE QCRRHWDR OR THE QUEBEC COMMITTEE FOR THE RECOGNITION OF THE RIGHTS OF HAITIAN WORKERS IN THE DOMINICAN REPUBLIC MOST PEOPLE THOUGH REACH FOR THE MORE INCLUSIVE CANADIAN MAPLE LEAF BUTTONS HE IS ALSO GIVING AWAY UPSTAIRS IN THE MAIN MEETING HALL THAT IS OFFLIMITS TO THESE ACTIVISTS DIPLOMATS ARE TALKING ABOUT A NEW ERA IN HUMAN RIGHTS NOW THAT THE COLD WAR IS OVER HUMAN RIGHTS THEY SAY TOPS THE WORLD'S AGENDA COLD WAR NO COLD WAR WE SEE NO DIFFERENCE SAYS YOGESH VARHADE WHO RUNS AN ORGANIZATION REPRESENTING INDIA'S OUTCASTS OR UNTOUCHABLES HE HAS CLEARED SOME SPACE BETWEEN A CUBAN FLAG AND A COKE MACHINE THE CASTE SYSTEM IN INDIA HE TELLS PASSERSBY IS WORSE THAN APARTHEID IN SOUTH AFRICA WHERE ELSE CAN A WOMAN BE PARADED NAKED IN A VILLAGE SQUARE BY HER BOSS HE ASKS THE WORLD IS SLEEPING THIRD WORLD COUNTRIES DRAW MOST OF THE WRATH BUT THERE'S PLENTY FOR THE DEVELOPED NATIONS AS WELL THERE ARE TURKS FROM GERMANY NATIVE AMERICANS FROM NORTH AMERICA AND WAR VICTIMS FROM JAPAN AND THEN THERE IS THE ANCIENT GRIEVANCE OF 40 AZTEC INDIANS FROM MEXICO WHO HAVE COME TO RECLAIM THE FEATHER CROWN OF MONTEZUMA FROM AN AUSTRIAN MUSEUM THE CROWN WITH COLORFUL FEATHERS OF THE QUETZAL BIRD RISING OUT OF A HEADBAND OF GOLD WAS TAKEN BY THE SPANISH IN 1521 AND PASSED ON TO AUSTRIA'S HAPSBURG MONARCHY A FEW YEARS LATER THROUGHOUT THE DAY THE DRUMMING AND DANCING OF THE AZTECS PROVIDE BACKUP RHYTHM TO EVERY MAJOR PROTEST AGAINST CONTEMPORARY CRUELTY BOSNIANS AGAINST SERBIAN ETHNICCLEANSING BUDDHIST MONKS AGAINST VIETNAMESE PERSECUTION BLACKGARBED WOMEN AGAINST RAPE SOON IM YANG DRAPED IN A WHITE SHEET TIRELESSLY WALKS WITH THE PICTURE OF HER FATHERINLAW HANGING AROUND HER NECK SHE IS A KOREAN HOUSEWIFE PRESIDENT OF THE ASSOCIATION OF PACIFIC WAR VICTIMS AND BEREAVED FAMILIES ALL DAY LONG SHE SILENTLY TRUDGES AROUND THE CONFERENCE CENTER LIKE AN APPARITION RELYING ON THE ENGLISH MESSAGE HANDWRITTEN ON THE BACK OF HER SHEET 48 YEARS SINCE WORLD WAR II JAPAN THE WARCRIMINAL NATION OF THE PACIFIC WAR YOU HAVE TO TELL US IF OUR FATHERS ARE DEAD OR ALIVE HER FATHERINLAW SHE EXPLAINS WAS TAKEN FROM KOREA BY THE JAPANESE ARMY AND HASN'T BEEN SEEN SINCE THE JAPANESE GOVERNMENT HAS NEVER TOLD HER WHAT HAPPENED TO HIM I WANT THE JAPANESE GOVERNMENT TO APOLOGIZE TO SHAME THEMSELVES SHE SAYS THROUGH A TRANSLATOR SHE PAUSES BRIEFLY TO REST IN A CHAIR THEN SHE IS UP AGAIN PULLING A WHITE VISOR OVER HER HAIR TO RESUME HER WALK ON HER VISOR THE TRANSLATOR HAS WRITTEN WAR CRIMES JAPAN IS NOT QUALIFIED TO BE A PERMANENT MEMBER OF THE SECURITY COUNCIL OF THE UNITED NATIONS WHILE SOON IM YANG GETS A GREAT DEAL OF NOTICE JOSE RAMOSHORTA WILL STICK WITH HIS STICKERS HE SHOULD KNOW WHAT WORKS BACK IN AUSTRALIA WHERE HE CAMPAIGNS FOR TIMORESE INDEPENDENCE MR RAMOSHORTA RUNS A DIPLOMACY TRAINING PROGRAM INSTRUCTING HUMAN RIGHTS ACTIVISTS HOW TO PROMOTE THEIR CAUSES CONSIDER HIS ENIGMATIC SLOGANS FOR BATHROOMS THE XANANA HE WANTS FREED IS XANANA GUSMAO LEADER OF THE EAST TIMOR LIBERATION MOVEMENT NOW SITTING IN AN INDONESIAN JAIL EAST TIMOR IS AN ISLAND CONTROLLED BY INDONESIA DESPITE UN AND INTERNATIONAL PROTESTS BALI IS A POPULAR INDONESIAN TOURIST ISLAND THAT MR RAMOSHORTA WOULD LIKE EVERYONE TO BOYCOTT I KNOW ALL THE THIRD WORLD ACTIVISTS SAY CONDITIONS IN THEIR COUNTRY ARE THE WORST SAYS MR RAMOSHORTA BUT LET ME TELL YOU ABOUT MY COUNTRY 9306180104 930618 CARNIVAL CRUISE IN CASINO VENTURE MIAMI CARNIVAL CRUISE LINES SAID IT ENTERED INTO A 10YEAR MANAGEMENT CONTRACT WITH AN OTTAWA REAL ESTATE COMPANY EMPIRE DEVELOPMENTS TO OPERATE A CASINO IN OTTAWA THE 18000SQUAREFOOT CASINO TO BE RUN BY CARNICON A JOINT VENTURE BETWEEN CARNIVAL AND THE MIAMI HOTEL MANAGEMENT COMPANY CONTINENTAL COS IS SUBJECT TO APPROVAL FROM THE ONTARIO PROVINCIAL GOVERNMENT A CARNIVAL SPOKESWOMAN SAID THE OTTAWA CITY COUNCIL APPROVED THE PROJECT EARLIER THIS WEEK THE OTTAWA CASINO WOULD BE CARNIVAL'S FIRST VENTURE OF THIS SORT IN CANADA THE CRUISE LINE CURRENTLY OPERATES CASINOS IN THE BAHAMAS VENEZUELA AND PUERTO RICO THE SPOKESWOMAN SAID 9306180103 930618 NASD DISCIPLINES FIRMS FOR VIOLATING SECURITIES RULES BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC DISCLOSED DISCIPLINARY ACTIONS AGAINST THREE FIRMS AND A NUMBER OF INDIVIDUALS FOR VIOLATIONS OF SECURITIES RULES TREND SECURITIES INC SAN ANTONIO WAS FINED 10000 EXPELLED FROM NASD MEMBERSHIP AND REQUIRED TO DISGORGE 48462 PRINCIPAL THURMAN EARL BACHMAN AND BROKER LLOYD C GAGE WERE EACH SUSPENDED FOR FIVE YEARS IN ADDITION STEVE JAY KITCHEN A PRINCIPAL IN THE FIRM AND GARY DEAN CADENA AN ASSOCIATED PERSON WERE EACH SUSPENDED FOR FIVE YEARS WITHOUT ADMITTING OR DENYING ALLEGATIONS THE NASD SAID THE FOUR MEN AND THE FIRM PERMITTED THE SALE OF UNITS OF NONEXEMPT SECURITIES BY NONQUALIFIED OR NONREGISTERED BROKERS CAMBRIDGENEWPORT CO SPRINGFIELD MASS AND PRINCIPAL ERIC J YOUNGQUIST WINDSOR CONN WERE EACH FINED 20000 THE FIRM WAS PROHIBITED FROM SELFCLEARING MUTUAL FUND WIREORDER TRANSACTIONS AND MR YOUNGQUIST WAS BARRED IN ANY MANAGERIAL SUPERVISORY OR PRINCIPAL CAPACITY THEY DIDN'T ADMIT OR DENY ALLEGATIONS THAT THEY FAILED TO MAINTAIN MINIMUM NET CAPITAL AND HAD RECORDKEEPING AND OTHER VIOLATIONS VSR FINANCIAL SERVICES INC LEAWOOD KAN AND PRINCIPAL DONALD J BEARY OVERLAND PARK KAN WERE FINED 14955 JOINTLY AND SEVERALLYEACH RESPONSIBLE FOR THE FULL AMOUNT THEY DIDN'T ADMIT OR DENY ALLEGATIONS OF RECORDKEEPING AND SUPERVISORY VIOLATIONS J MICHAEL STANFIELD PRESIDENT AND CHIEF EXECUTIVE OF VSR SAID THE DISCIPLINARY ACTIONS WERE BASED ON A 1990 TRANSACTION WHERE ONE OF OUR REPRESENTATIVES WAS ACTING AS A GENERAL PARTNER IN A REAL ESTATE TRANSACTION AND SOME OF THE INVESTOR SUBSCRIPTIONS WERE SENT DIRECTLY TO THE PARTNERSHIP AND NOT ENTERED ON OUR BOOKS AND RECORDS NO INVESTOR FUNDS WERE EVER AT RISK THESE WERE TECHNICAL VIOLATIONS OF NASD RULES SO WE CONSENTED TO AVOID THE COST OF LITIGATION UNLESS OTHERWISE NOTED NONE OF THE PARTIES COULD BE REACHED OR HAD ANY COMMENT INDIVIDUALS DISCIPLINED INCLUDED CHARLES A ARRINGTON JR ALSIP ILL BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS JOHN R BANKS WARREN OHIO FINED 15000 AND BARRED DWIGHT HASTINGS BARLOW STATEN ISLAND NY FINED 75000 AND BARRED NANCY LEE BRANDSTATTER LOS ALTOS HILLS CALIF FINED 120000 AND BARRED FOR MISAPPROPRIATING 137096 JAMES ELDRIDGE CARTWRIGHT WEST HEMPSTEAD NY FINED 20000 AND BARRED AS A GENERAL SECURITIES PRINCIPAL IN A SEPARATE ACTION HE ALSO WAS FINED 20000 AND BARRED IN ANY CAPACITY FOR FAILING TO PAY AN ARBITRATION AWARD KENNETH E COONER DESTIN FLA WAS FINED 5000 AND SUSPENDED IN ANY PRINCIPAL CAPACITY FOR TWO WEEKS WITHOUT ADMITTING OR DENYING ALLEGATIONS PHILIP JAY COOPER BRONX NY FINED 30000 AND BARRED JEFFREY DALE GIVENS WEST DES MOINES IOWA FINED 20000 AND BARRED WILLIAM CORLEY HAGAN DES PLAINES ILL FINED 75000 AND BARRED THOMAS G KIBLER CIRCLE PINES MINN FINED 15000 AND SUSPENDED 30 DAYS BARRY A LOOMIS OTTAWA ILL FINED 114000 AND BARRED ALLISON A MAGEE SCOTTSDALE ARIZ FINED 100000 BARRED AND REQUIRED TO PAY 13350 IN RESTITUTION JACK M MARDACK JACKSON HEIGHTS NY FINED 50000 AND BARRED MICHAEL H NOVICK BOULDER COLO FINED 52754 AND BARRED THE ACTION HAS BEEN APPEALED TO THE SECURITIES AND EXCHANGE COMMISSION JAMES ALLEN PIERSMA HOLLAND MICH FINED 70000 AND BARRED JACK W PRUITTE CLARKSVILLE TENN FINED 10000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS TONEY L REED IRVING TEXAS FINED 25000 SUSPENDED AS A PRINCIPAL FOR ONE YEAR AND REQUIRED TO PAY 40175 IN RESTITUTION THE ACTION HAS BEEN APPEALED TO THE SEC MARC BARRY RESNICK BELL CANYON CALIF FINED 20000 AND BARRED DAMON STEPHAN RIDLEY INDIANAPOLIS IND FINED 20000 AND BARRED ALBERT F SMITH BUFFALO NY FINED 20000 AND BARRED GARY CLIFFORD SMITH CARTHAGE NC FINED 5000 BARRED IN ANY CAPACITY EXCEPT SERIES 6 REGISTRATION FOR FAILING TO PAY A 71274 ARBITRATION AWARD TIMOTEO TORRES LONG BEACH CALIF FINED 10000 AND BARRED GORDON SCOTT VENTERS ORLANDO FLA FINED 2500 AND SUSPENDED ONE DAY SANCTIONS AFFIRMED BY THE SEC RAYMOND O WAGONER INDIANAPOLIS FINED 176000 AND BARRED IN PART FOR USING 56000 OF CUSTOMER FUNDS FOR PURPOSES OTHER THAN TO BENEFIT CUSTOMERS LENORA WARREN BATON ROUGE LA FINED 50000 AND BARRED WITHOUT ADMITTING OR DENYING ALLEGATIONS THAT SHE CONVERTED 10000 IN CUSTOMER FUNDS TO HER OWN USE AND ALEXANDER J WU NEW YORK FINED 50000 AND BARRED GARY CLIFFORD SMITH SAID HIS DISCIPLINARY CASE AROSE FROM PROBLEMS IN PAYING AN ARBITRATION AWARD TO ONE OF HIS CLIENTS WHICH HE HAD BEEN PAYING IN INSTALLMENTS UNDER DURESS HE SAID THE CLIENT HAS BEEN TRYING TO FORCE HIM TO MAKE A LUMPSUM PAYMENT OF THE BALANCE OF THE AWARD MORE THAN 50000 WHICH I CAN'T DO SO I HAVE TO LOOK AT THE POSSIBILITY OF PERSONAL BANKRUPTCY THEY DON'T WANT THEIR MONEY THEY JUST WANT A POUND OF FLESH MR SMITH SAID THE CLIENT WAS THE ONLY PROBLEM I'VE HAD IN 27 YEARS IN THE SECURITIES BUSINESS 9306180102 930618 SHADES OF BUSH IN CALIFORNIA BY TIM W FERGUSON SACRAMENTO THE SIMILARITIES BETWEEN GEORGE BUSH AND PETE WILSON ARE NOT LOST ON MANY CALIFORNIANS BOTH YALE GRADUATES UPON ATTAINING THE HIGH OFFICES THEY'D LONG SOUGHT FACED ECONOMIC DILEMMAS NOT OF THEIR OWN MAKING BOTH RESPONDED IN WAYS THAT WON PRAISE FROM ELITES BUT CONTEMPT FROM THEIR CONSERVATIVE BASES AND PROBABLY WORSENED THE PROBLEMS THEY SET OUT TO SOLVE BOTH REMAINED DISMISSIVE OF CRITICS ON THE RIGHT AS OPINIONS HARDENED THEN ACTED TO REGAIN THEIR BASES BUT IN SO DOING ANTAGONIZED THE BROAD ELECTORATE GOV WILSON IS NOT A STATISTIC YET IN AN INTERVIEW TUESDAY HE PASSED THIS ALONG TO GLUM FELLOW REPUBLICANS YOU'VE GOT SOMEBODY WHO WON'T MAKE THE SAME MISTAKES AS THE PRESIDENT HE AND HIS CAMP THINK AN EXTRAORDINARY CAMPAIGN WAR CHEST SAID TO BE SWELLING BY 150000 A WEEK WILL GIVE THEM WAYS TO REACH THE PEOPLE AND FRAME HIS RECORD SO AS TO MAKE IT PALATABLE FOR 1994'S ELECTION BUT MR WILSON'S 15 FAVORABLE RATING IN A RECENT POLL ATTESTS TO CRITICAL MISTAKES AND A HOST OF CONSERVATIVE LEGISLATORS CAMPAIGN CONSULTANTS AND INTELLECTUALS CONTACTED IN THE PAST WEEK SAID HE WAS EITHER POLITICALLY DEAD OR IN NEED OF HEROIC RESUSCITATION SOME ARE BUSY SEEKING A CHALLENGER TO MR WILSON IN NEXT JUNE'S PRIMARY PERHAPS TO SERIOUSLY TEST HIS ARMADA SOME POLLING SHOWS EXPLOSIVE DISCONTENT WITHIN THE GOP ITSELF BUT AT LEAST TO DISSOCIATE THEMSELVES FROM HIM IN THE PUBLIC EYE TOP DRAFT PROSPECT IS FORMER LOS ANGELES COUNTY SUPERVISOR PETE SCHABARUM WHO LED THE TERMLIMITS STRIKE ON SACRAMENTO OTHERS ON THE RIGHT DESPERATELY PETITION THE GOVERNOR TO TRY DARING ESCAPES FROM THE FISCAL VISE THAT HAS BEEN HIS UNDOING THE CONTINUAL BUDGET CRISIS CAME TO A HEAD AGAIN THIS WEEK AS DEMOCRATIC ASSEMBLY SPEAKER WILLIE BROWN'S SIDE POSTURED WITH A PLAN IT KNEW COULDN'T PASS MR WILSON MEANWHILE ANGLED TO TAKE MONEY FROM LOCAL GOVERNMENT TO FEED THE INVINCIBLE SCHOOLS LOBBY THE ATTEMPTED RAID SUCCEEDED IN ALIENATING REMAINING ELEMENTS OF THE GOP BASE LAWENFORCEMENT WHICH FACES CITY AND COUNTY CUTS SUBURBAN HOMEOWNERS WHOSE FAVORED SERVICES ARE ON THE LINE AND BUSINESS BECAUSE THE NOGROWTH BIAS OF MANY LOCAL GOVERNMENTS WILL BE HARDENED WHEN TAXES RAISED FROM NEW DEVELOPMENT MUST GO TO THE STATE MR WILSON ARGUES THAT HE HAS NO CHOICE IF HE IS NOT TO RAISE TAXES IN A MEGASTATE WHOSE CONTINUING DOWNTURN IS A DRAG ON THE NATIONAL ECONOMY THE CLINTON TAX PLAN HAS A POUNDING IN STORE FOR CALIFORNIA HE REJECTS AS UNDOABLE THE 9 BILLION IN SPENDING CUTS OFFERED BY HARDCORE CONSERVATIVES SO HE WANTS TO BLEED THE LOCALS IN RETURN FOR GRANTING THEM MORE DISCRETION TO CUT WELFARE SPENDING AND A CHANCE TO PUT THEIR OWN COMPENSATORY TAX INCREASES ON A BALLOT THIS NOVEMBER THE BELLYACHING COUNTY SUPERVISORS HE SAYS HAVE OPTED TO WHIP UP OPPOSITION INSTEAD OF GRAPPLE WITH WHAT HE'S OFFERING ONE OF THEM GOP STALWART MICHAEL ANTONOVICH OF LOS ANGELES COUNTY ANSWERS THAT HIS PARTY'S LEADER HAS FAILED TO BRING THE SAME ECONOMIES TO STATE GOVERNMENT THAT THE LOCALS HAVE ALREADY ACHIEVED LIKE SO MUCH THAT GOV WILSON HAS DONE SINCE HIS TERRIBLE MOVE TO RAISE TAXES 75 BILLION HIS FIRST YEAR THIS SCHEME HAS A CERTAIN LOGIC HE IS TRYING IN SOME SMALL WAY TO REDRESS AN UNFORTUNATE LEGACY OF THE PROPOSITION 13 PROPERTYTAX REVOLUTION IT CONCENTRATED MOST BUDGETARY POWER IN SACRAMENTO HOME OF ONE OF THE MOST CYNICAL AND CORRUPT FISCAL PROCESSES IN THE NATION THE WILSON SHIFT WAS A BELATED AWKWARD HALFSTEPSOME CRITICS WOULD SAY TYPICALLY SOTOWARD REFORM GOV WILSON SAYS HE CANNOT GET HOLISTIC SOLUTIONS THROUGH THE WILLIE BROWN BLOCKADE AND HE OBJECTS TO A BALLOTINITIATIVE ALTERNATIVE DESIGNED TO DEAL WITH THE CHRONIC FISCAL PROBLEMS OF CALIFORNIA THAT WILL LINGER AFTER THE CURRENT DEFICITS AND RECESSION ARE SOMEHOW BROUGHT TO AN END IT WOULD BE SO COMPLEX IT WOULDN'T BE A GOOD POLITICAL ISSUE HE SAYS REGARDLESS THE GOVERNOR TRIED A FORM OF THAT BEFORE HIS INITIATIVE TO CUT WELFARE BENEFITS AND GIVE THE EXECUTIVE BRANCH MORE SPENDING AUTHORITY SUFFERED A BRUISING DEFEAT LAST NOVEMBER WHAT MR WILSON WAS REALLY TRYING TO DO THERE SAYS MARTIN ANDERSON OF THE HOOVER INSTITUTION WAS NOT SO MUCH TO CHANGE THE WELFARE INCENTIVE ALTHOUGH CALIFORNIA ROLLS KEEP GROWING BY 10 ANNUALLY AS TO SOFTEN UP SOMETHING CALLED PROPOSITION 98 PUT ON THE STATE BALLOT BY THE EDUCATION ESTABLISHMENT IN 1988 AND BARELY PASSED PROP 98 REQUIRES AN EVER MORE ONEROUS SHARE OF TAX REVENUES FOR PUBLIC SCHOOLS GOV WILSON MAINTAINS THAT THIS IS WHAT FORCES HIM TO TAKE FUNDS FROM LOCAL GOVERNMENT AND THE PROBLEM WON'T GO AWAY WHEN CALIFORNIA STARTS TO RECOVER MOST OF THE REBOUNDING TAX REVENUES WILL BE EARMARKED BY PROP 98 IN ADDITION TO LOSING THE INITIATIVE FIGHT LAST YEAR THE GOVERNOR WON ONLY A PYRRHIC VICTORY FOLLOWING HIS LONG 1992 BUDGET STANDOFF WITH THE LEGISLATURE OVER SCHOOL MONEY TEACHER UNIONS HAVE BLUDGEONED HIM SINCE EARLY IN HIS TERM AND NOW HE IS AVOIDING FURTHER FIGHTS WITH THEM HE HASN'T TAKEN A STAND ON A SCHOOLCHOICE VOUCHER PLAN SET FOR A SPECIAL ELECTION THIS NOVEMBER HIS ADMINISTRATION COULD HAVE HELPED PUT THAT MEASURE TOGETHER HE ACKNOWLEDGES BUT IT CHOSE NOT TO SOME OF HIS ADVISERS ARE AGAINST IT MOREOVER THE STATE BOARD OF EDUCATION LED BY HIS APPOINTEES SURPRISED HIM LAST WEEK BY UNANIMOUSLY OPPOSING THE VOUCHER TO ADVENTUROUS CONSERVATIVES A WILSON PUNT ON SCHOOL CHOICE WOULD BE ONE MORE MISSED OPPORTUNITY TO FORGE A POPULAR MOVEMENT AGAINST THE BUREAUCRATIC STATE LIKEWISE BOLD STROKES ON AUTO AND HEALTH INSURANCE ARE LEFT TO MAVERICK DEMOCRATS WHILE WORKERS' COMP REFORM IS ON SLOW GRIND IN THE LEGISLATURE MARKETBASED ENVIRONMENTALISM INCHES ALONG AND PRECIOUS FEW STATE OPERATIONS ARE PRIVATIZED INSTEAD OF EAGERLY OFFERING CALIFORNIANS A BETTER LIFE IN RETURN FOR SMALLER GOVERNMENT GOV WILSON IS SEEN AS ALL PAIN NO GAIN A GRIM VISAGE OF AN UNHAPPY ERA THE GOVERNOR OBJECTS TO THAT DESCRIPTION AS NONSENSE BUT WHEN HE SAYS HE HOPES THE VOTERS CAN BE TOUCHED IN A WAY THAT ALLOWS THEM TO SPEAK TO THE COMMON GOOD HE MEANS TO APPEAL TO A WILLINGNESS TO SACRIFICE THROUGH THE STATE'S HARD TIMES AND SUFFER A REDUCTION IN SERVICES OR HIGHER FEES TO OBTAIN THEM SUCH A MESSAGE GETS MAYBE 25 OF THE ELECTORATE FOR ROSS PEROT AND SHOULD NOT BE EXPECTED TO MATERIALLY AID AN UNPOPULAR INCUMBENT AT THE SAME TIME THE PINING THAT ONE HEARS FOR A JACK KEMP TO LEAD THE CALIFORNIA GOP OUT OF ITS VALLEY IS SOMEWHAT OFF THE POINT IF GOV WILSON IS TO BE FAULTED FOR A PINCHED VISION OF THE CREATIVE POLITICAL POSSIBILITIES OF A FREE MARKET APPROACH THE LIBERTARIAN CATO INSTITUTE GRADED HIM F AFTER HIS FIRST YEAR HE IS ALSO TO BE DEFENDED IN THE URGENT CONTEXT OF FISCAL CALAMITY HE ENTERED OFFICE WITH STATE SPENDING ON ONE OF ITS STEROIDAL HIGHS WITH BUILTIN ESCALATORS AND A RAPID GROWTH IN THE NUMBER OF BENEFICIARIES FROM THE OUTSET THE GOVERNOR COULD HAVE MADE MORE CUTS THAN HE DID AND INITIATED SOME RADICAL STEPS TO CHANGE THE LONGRUN PICTURE INSTEAD HE THOUGHT HE COULD MAKE WILLIE BROWN HIS PARTNER ONLY TO ADMIT LATER THAT IT WAS A MISTAKE MR WILSON HAS BEEN IN A FIGHTINGWHILEGOVERNING POSTURE EVER SINCE SHOWING HE SAYS MORE FISCAL DISCIPLINE THAN ANY ADMINISTRATION IN HISTORY HIS FINANCE OFFICE FIGURES HE HAS CUT SPENDING 222 FOR EVERY 1 OF RAISED TAXES THE ECONOMY IS SO FLUID THAT SUCH CALCULATIONS ARE AS HELPFUL AS VIETNAM BODYCOUNTS BUT HE HAS MANIFESTED MUCHNEEDED RESISTANCE TO MAJOR SPENDING INTERESTS IT IS ON THAT BASIS AS A TOUGHMINDED ADMINISTRATOR WILLING TO REQUIRE ALL TO PAY A PRICE IN A BAD RECESSION THAT HE WILL STAKE HIS GOVERNORSHIP YOU CAN SEE SOME POPULIST THEMES EMERGING IT TAKES THREE AVERAGE CALIFORNIA TAXPAYERS TRUCK DRIVERS TO PAY THE TAXES TO SEND ONE UNDERGRADUATE TO THE UNIVERSITY OF CALIFORNIA THAT WILL ATTEMPT TO PUT INTERESTGROUP ANGER OVER BUDGET CUTS IN PERSPECTIVE ILLEGAL IMMIGRANTS ARE SURE TO BE A TARGET GOV WILSON CONCEDES THAT MAYBE HE'S GOT TO DO SOME THINGS TO MAKE PEOPLE WANT TO LISTEN TO HIM AGAIN RIGHT NOW IN A PARTY STILL CHASTENED BY THE NATIONAL DEBACLE OF 1992 HE IS NEARLY ALONE IN THINKING HE HAS THE TIME CIRCUMSTANCE AND CAPACITY TO PULL IT OFF MR FERGUSON IS A LOS ANGELESBASED MEMBER OF THE JOURNAL'S EDITORIAL BOARD 9306180101 930618 TECHNOLOGY MICROPROSE MULLS A POSSIBLE MERGER WITH SOFTWARE FIRM STAR TREK LICENSEE SPECTRUM HOLOBYTE WOULD BECOME PUBLIC COMPANY IN PROCESS BY JAMES C HYATT STAFF REPORTER OF THE WALL STREET JOURNAL ENTERTAINMENT SOFTWARE MAKER MICROPROSE INC SAID IT IS IN TALKS TO MERGE WITH AND GIVE CONTROL TO SPECTRUM HOLOBYTE INC ANOTHER FASTGROWING COMPUTER GAMES SOFTWARE COMPANY OWNED BY SOME MAJOR PRIVATE INVESTORS THE MOVE IN EFFECT WOULD MAKE SPECTRUM A PUBLIC COMPANY THROUGH CONTROL OF MICROPROSE WHERE REVENUE ROSE 12 TO 465 MILLION IN ITS MOST RECENT FISCAL YEAR MICROPROSE SAID THE TALKS ARE BASED ON A TERM SHEET AND HAVEN'T YET RESULTED IN AN AGREEMENT IN PRINCIPLE IN OVERTHECOUNTER TRADING YESTERDAY MICROPROSE ROSE 20 OR 1 A SHARE TO CLOSE AT 6 SPECTRUM HOLOBYTE'S PRODUCTS INCLUDE TETRIS AND FALCON AN F16 JET FIGHTER SIMULATION IT ALSO IS THE EXCLUSIVE SOFTWARE ENTERTAINMENT LICENSEE OF STAR TREK THE NEXT GENERATION ITS STOCKHOLDERS INCLUDE AT&T VENTURES PARAMOUNT COMMUNICATIONS INC AND SOME VENTURE CAPITAL FIRMS NEAL DOUGLAS GENERAL PARTNER OF AT&T VENTURES THE VENTURE CAPITAL ARM OF AMERICAN TELEPHONE & TELEGRAPH CO SAID WE'RE TRYING TO LEVERAGE AT&T'S FOCUS IN MULTIMEDIA AND SPECTRUM FITS INTO THAT BECAUSE IT IS A LEADING PLAYER IN MULTIPARTICIPANT INTERACTIVE GAMES PLAYED OVER NETWORKS HE SAID TECHNOLOGIES AT BOTH COMPANIES WILL BE VALUABLE IN THE TRANSITION FROM CARTRIDGEBASED VIDEO GAMES TO CDBASED GAMES MICROPROSE IN HUNT VALLEY MD HAS BEEN STRUGGLING TO ARRANGE FINANCING IN THE FACE OF SUBSTANTIAL ESTIMATED LOSSES AND LOAN DEFAULTS IN EARLY JUNE THE COMPANY SAID IT EXPECTED TO REPORT A NET LOSS OF ABOUT 53 MILLION OR 78 CENTS A SHARE FOR THE FISCAL YEAR ENDED MARCH 31 MICROPROSE MAKES SIMULATION AND STRATEGY GAMES AS WELL AS VIDEO GAMES IT RECENTLY ANNOUNCED C P U BACH AN INTERACTIVE MUSIC COMPOSITION GAME FOR USE ON THE 3DO INTERACTIVE MULTIPLAYER DEVICE DISCUSSIONS CALL FOR SPECTRUM TO INVEST 10 MILLION IN MICROPROSE IT WOULD GET FOUR SEATS ON AN EIGHTMEMBER BOARD AND HAVE THE RIGHT TO APPOINT A NEW PRESIDENT AND CHIEF EXECUTIVE TO SUCCEED CHAIRMAN JOHN W STEALEY SR WHO HOLDS ABOUT 55 OF MICROPROSE IN ADDITION THE TWO COMPANIES ARE DISCUSSING A MERGER AGREEMENT THAT WOULD GIVE SPECTRUM IN ALAMEDA CALIF ABOUT 60 OF THE SHARES IN THE MERGED COMPANY MR STEALEY HAS GIVEN SPECTRUM AN OPTION TO PURCHASE HIS MICROPROSE SHARES AT 525 A SHARE UNDER CERTAIN CIRCUMSTANCES GEORGE R BLAIR MICROPROSE VICE PRESIDENT MARKETING SAID IT HAS BEEN NO SECRET THAT HIS COMPANY NEEDS MORE CAPITAL AND ADDITIONAL MANAGEMENT STRENGTH SPECTRUM INVESTORS HAVE LOTS OF MONEY AND WE HAVE LOTS OF IDEAS HE SAID 9306180099 930618 INTERNATIONAL RUSSIA UKRAINE AGREE ON FLEET BLACK SEA PORT BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW RUSSIAN PRESIDENT BORIS YELTSIN AND UKRAINIAN PRESIDENT LEONID KRAVCHUK SAID THEY AGREED TO SETTLE THEIR CUSTODY QUARRELS OVER THE BLACK SEA FLEET WHICH SINCE THE 1991 COLLAPSE OF THE SOVIET UNION HAS BEEN RUSTING IN LIMBO THE ACCORD MARKS THE FOURTH TIME IN 12 MONTHS IN WHICH LEADERS OF RUSSIA AND UKRAINE HAVE SET A DEAL TO DIVIDE UP THE BLACK SEA FLEET AND ITS BASE FACILITIES IN THE UKRAINIAN PORT OF SEVASTOPOL LIKE THE BARGAINS REACHED IN JUNE AND AUGUST 1992 AND AT A SUMMIT LAST JANUARY THE PACT LEAVES TOO MANY ISSUES STILL AT SEA TO AUGUR A LASTING RESOLUTION BUT THE DEAL STRUCK AT MR YELTSIN'S COUNTRY HOME OUTSIDE MOSCOW MAY HELP EASE TENSIONS BETWEEN THESE TWO BIG REPUBLICS OF THE FORMER SOVIET UNION IN A CLIMATE ALREADY FRAUGHT WITH QUARRELS OVER NUCLEAR ARMS CONTROL AND UKRAINE'S LAGGARD PAYMENTS FOR RUSSIAN OIL THE TWO COUNTRIES HAVE BEEN DICKERING OVER WHO OWNS WHAT SHARE OF THE BLACK SEA FLEET OF MORE THAN 325 WARSHIPS RUSSIA WORRIES THAT UKRAINE MIGHT TRY TO SHUT ANY FUTURE RUSSIAN FLEET OUT OF SEVASTOPOL RUSSIA'S LONE BASE IN THE BLACK SEA UKRAINIAN NATIONALISTS DON'T WANT RUSSIANS AROUND A UKRAINIAN PORT SAILORS IN THE FLEET ITSELF HAVE BEEN PROTESTING THE CURRENT JOINT RUSSIANUKRAINIAN COMMAND UNDER THIS MESSY ARRANGEMENT SOME SAILORS ARE PAID IN FASTDEVALUING RUSSIAN RUBLES WHILE OTHERS GET EVEN LESS VALUABLE UKRAINIAN KARBOVANETS MEANTIME RUSSIAN SAILORS WITH FAMILIES IN OR NEAR SEVASTOPOL FEAR THAT UKRAINE WILL STRIP THEM OF SUCH PERQUISITES AS HOUSING HOSPITALS AND RECREATION CENTERS YESTERDAY'S SUMMIT AGREEMENT PROPOSES A NEW BLACK SEA FLEET REGIME UNDER WHICH THE FLEET'S 70000 SAILORS WOULD GET DUAL RUSSIANUKRAINIAN CITIZENSHIP THE SHIPS WOULD BE EVENLY DIVIDED AND RUSSIA WOULD BE ALLOWED TO USE SEVASTOPOL SUPPORT FACILITIES BUT THE COMMUNIQUE DOESN'T SAY WHO WOULD GET WHICH SHIPS OR WHAT DUAL CITIZENSHIP WOULD MEAN OR ON WHAT TERMS RUSSIA WOULD HAVE ACCESS TO SEVASTOPOL MR YELTSIN REPEATED HIS PROMISE THAT RUSSIA WILL PROVIDE SECURITY GUARANTEES TO UKRAINE IF UKRAINE WILL SIGN THE NUCLEAR NONPROLIFERATION TREATY AND RATIFY THE START1 TREATY TO REDUCE ITS LONGRANGE NUCLEAR MISSILE ARSENAL AND THE TWO COUNTRIES AGREED TO RESOLVE THE SPAT ON THE SALE OF CHEAP RUSSIAN OIL TO UKRAINE BUT UNTIL RUSSIA AND UKRAINE CAN WORK OUT THE SPECIFICS WHAT THIS LATEST COMMUNIQUE AMOUNTS TO IS IN THE WORDS OF ONE MOSCOWBASED ANALYST THAT THE TWO COUNTRIES AGAIN DID LITTLE MORE THAN AGREE TO AGREE 9306180098 930618 LEISURE & ARTS DANCE BALANCHINE REDUX BY DALE HARRIS NEW YORK PETER MARTINS HEAD OF NEW YORK CITY BALLET THE COMPANY THAT GEORGE BALANCHINE FOUNDED IN 1948 AND DIRECTED UNTIL HIS DEATH IN 1983 IS MARKING THE 10TH ANNIVERSARY OF THE LATTER EVENT WITH A LARGESCALE RETROSPECTIVE OF HIS PREDECESSOR'S CAREER BETWEEN MAY 4 AND JUNE 27 73 OF BALANCHINE'S BALLETS ARE BEING STAGED SEVERAL OF THEM FOR THE FIRST TIME IN MANY YEARS NATURALLY ENOUGH THE CHANCE TO SEE SO MANY WORKS BY THE GREATEST AMERICAN CHOREOGRAPHER HAS DRAWN HUGE AUDIENCES TO THE STATE THEATER YET LONG BEFORE THE END OF THE BALANCHINE CELEBRATION IT BECAME CLEAR THAT ALL WAS FAR FROM WELL FOR ONE THING A LOT OF THE WORKS LOOK DEVITALIZED BALLETS THAT DURING THE 1970S USED TO SEND ONE OUT OF THE THEATER IN A STATE OF EXHILARATION APOLLO THE FOUR TEMPERAMENTS AGON MONUMENTUM PRO GESUALDO HAVE BECOME LIMP VAPID INCONSEQUENTIAL LIEBESLIEDER WALZER ONCE AN ABSORBING RITUAL OF COURTSHIP IS TODAY LITTLE MORE THAN A SUCCESSION OF NUMBERS TOO BLAND TO JUSTIFY THE BALLET'S LENGTH COULD ANYONE WHO ONLY KNOWS CONCERTO BAROCCO IN ITS PRESENT CONDITION HAVE ANY IDEA HOW BREATHTAKINGLY BEAUTIFUL THIS WORK ONCE WAS HOW NIGHT AFTER NIGHT IT OPENED OUR EYES MORE CLEARLY THAN ALMOST ANYTHING ELSE IN THE REPERTOIRE TO THE PROFOUND AND INEXPLICABLE POWER OF MUSIC BALLETS HAVE A HIGH MORTALITY RATE NOTHING BY JULES PERROT SURVIVES TODAY DESPITE THE CHOREOGRAPHER'S PRODIGIOUS SUCCESS IN PARIS LONDON AND ST PETERSBURG DURING THE MID19TH CENTURY OF MARIUS PETIPA'S IMMENSE OUTPUT ONLY A HANDFUL OF BALLETS ARE STILL EXTANT LITTLE REMAINS OF THE ACHIEVEMENTS OF LEONIDE MASSINE THE MOST ADULATED DANCE MAKER OF THE '20S AND '30S BALLETS OFTEN DISAPPEAR BECAUSE THERE IS NO INSTITUTION ABLE OR WILLING TO PRESERVE THEM SEVERAL MAJOR WORKS BY PERROT'S CONTEMPORARY AUGUST BOURNONVILLE SURVIVE BECAUSE THE ROYAL DANISH BALLET FOR WHICH THEY WERE ORIGINALLY MADE HAS KEPT THEM IN ITS PERMANENT REPERTORY ALBEIT IN REVISED VERSIONS WHEREAS THE LONDON TROUPE FOR WHICH PERROT CREATED MANY OF HIS MOST ADMIRED BALLETS WENT OUT OF EXISTENCE SHORTLY AFTER HIS DEPARTURE IN 1848 BALLETS DIE FOR OTHER REASONS TOO MANY WORKS THAT LOOKED LIKE MASTERPIECES WHEN NEW ARE TOO TIED TO THE SENSIBILITY OF THEIR TIME TO LAST BEYOND IT AS WITNESS THE FATE OF FOKINE'S PETRUSHKA MASSINE'S SYMPHONIE FANTASTIQUE ASHTON'S DANTE SONATA BALANCHINE'S COTILLON AND ORPHEUS SOME OF THESE BALLETS WHILE CERTAINLY DEAD HAVE NOT DISAPPEARED ORPHEUS THOUGH IDENTIFIED AS A SEMINAL WORK BY LINCOLN KIRSTEIN IN HIS ENLIGHTENING BOOK MOVEMENT AND METAPHOR HAD ALREADY GIVEN UP THE GHOST DURING THE CHOREOGRAPHER'S LIFETIME BY 1972 WHEN BALANCHINE REVIVED IT FOR THE STRAVINSKY FESTIVAL THERE WAS LITTLE LEFT OF WHAT HAD ONCE SEEMED A PERMANENT PART OF AMERICAN DANCE BUT BALLETS WHICH EVEN IN AN AGE OF VIDEOTAPE AND MORE OR LESS PRECISE NOTATION SYSTEMS EXIST ONLY IN PERFORMANCE CAN ALSO DIE FROM PERVERSE OR CARELESS CASTING ESPECIALLY WHEN THIS OCCURS OVER THE COURSE OF SEVERAL SEASONS MR MARTINS HAS VIRTUALLY GUARANTEED THE DEATH BY INANITION OF KEY BALANCHINE WORKS CONCERTO BAROCCO MONUMENTUM PRO GESUALDO AND MOVEMENTS FOR PIANO AND ORCHESTRA BY GIVING THE LEADING ROLES IN MOST RECENT PERFORMANCES TO THE EGREGIOUSLY UNDERQUALIFIED HEATHER WATTS LIKE MS WATTS MOST OF TODAY'S COMPANY MEMBERS ARE INCAPABLE OF RISING TO THE LEVEL OF EXCELLENCE THAT USED TO BE THE NORM AT NYCB BEFORE 1983 IT'S NOT THAT THEY CANNOT DO THE STEPS BUT THAT THEY CANNOT GIVE THEM MEANING A SENSE OF CONTINUITY AND MUSICAL COHERENCE A HANDFUL OF DANCERS IT'S TRUE HAVE CONTRIVED TO TRANSCEND THE GENERALLY DISPIRITING LEVEL OF EXECUTION AT NYCB ABOVE ALL KYRA NICHOLS DARCI KISTLER YVONNE BORREE NICHOL HLINKA AND IN THE CORPS DE BALLET SHERRI LEBLANC MORE REPRESENTATIVE OF NYCB'S CURRENT STANDARDS ALAS ARE GEN HORIUCHI LOURDES LOPEZ LINDSAY FISCHER JUDITH FUGATE AND WENDY WHELEN ALL OF THEM MORE OR LESS COMPETENT ALL DEEPLY UNSATISFACTORY IN BALLET COMPETENCE IS NOT ENOUGH IT DOES NOT PRODUCE EITHER THE EXCITEMENT OR THE REVELATIONS THAT AS BALANCHINE'S LIFE WORK MADE CLEAR ARE THE TRUE END OF DANCING CERTAIN PERFORMANCES HAVE ACTUALLY FALLEN BELOW THE LEVEL OF COMPETENCE ORPHEUS WITH NILAS MARTINS MS WHELEN AND DIANA WHITE WAS PARTICULARLY POOR THE BALLET MAY BE DEAD BUT THERE'S NO REASON TO TRAMPLE ON ITS CORPSE BY CASTING IT WITH SO THOROUGHGOING A DISREGARD FOR ARTISTIC PROPRIETY WHAT POINT MR MARTINS WAS TRYING TO MAKE WHEN HE PUT HIS SON IN THE TITLE ROLE IS HARD TO GUESS FEW DANCERS ARE MORE NATURALLY INEXPRESSIVE THAN THIS HAPLESS YOUTH WHOSE LACK OF TALENT AND PHYSICAL UNSUITABILITY FOR BALLET HAVE FAILED TO CHECK HIS ASTOUNDINGLY SWIFT RISE TO EMINENCE AT NYCB AS WAS CLEAR FROM THE RECENT WORKSHOP PROGRAM BY THE SCHOOL OF AMERICAN BALLET AT THE JUILLIARD THEATER THERE ARE GOOD DANCERS READY TO GO INTO THE COMPANY NOTHING ALL SEASON AT NYCB HAS BEEN MORE REWARDING THAN THE GRACEFUL RACHEL RUTHERFORD AND HER ELEGANT AND ATTENTIVE PARTNER PETER HANSEN BOTH STUDENTS AT SAB IN THE EXCERPT FROM VIENNA WALTZES PERFORMED AT THE WORKSHOP WHILE THE BALANCHINE CELEBRATION WAS IN FULL SWING ACROSS THE PLAZA AT JUILLIARD ONE SAW THE KIND OF COMMITMENT AND STYLE THAT HAVE LARGELY VANISHED FROM NYCB WHERE INSTEAD OF STAGING A BALANCHINE FESTIVAL THE DIRECTOR MIGHT HAVE DONE BETTER TO DEVOTE HIMSELF TO PRESERVING THE CHOREOGRAPHER'S HERITAGE DURING THE PAST INCREASINGLY DISMAL DECADE 9306180096 930618 MARQUEST COMPLETES SALELEASE ACCORD WITH ATLANTA FIRM ENGLEWOOD COLO MARQUEST MEDICAL PRODUCTS INC SAID IT COMPLETED A SALEANDLEASEBACK FINANCING AND EXCHANGE OFFER THAT WILL GIVE SCHERER HEALTHCARE INC THE RIGHT TO ACQUIRE AS MUCH AS 65 OF ITS COMMON STOCK IN THE TRANSACTION SCHERER A HEALTHCARE AND DRUGSERVICES SUPPLIER BASED IN ATLANTA PURCHASED MARQUEST'S BLOODGAS ANALYZER PRODUCT LINE FOR 45 MILLION THEN GRANTED A LICENSE BACK TO THE MAKER OF DISPOSABLE MEDICAL DEVICES WITH A RIGHT OF REPURCHASE UNDER THE OFFER'S TERMS A COMBINATION OF ABOUT 4000 SHARES OF SCHERER 5CONVERTIBLE PREFERRED STOCK 27 MILLION OF MARQUEST SIXYEAR 8 NOTES AND MARQUEST WARRANTS FOR 14 MILLION COMMON SHARES WILL BE EXCHANGED FOR ABOUT 127 MILLION OF MARQUEST SWISS BONDS WHICH ARE CURRENTLY IN DEFAULT THAT REPRESENTS ABOUT 90 OF THE BONDS OUTSTANDING AS PAYMENT FOR THE PREFERRED STOCK USED IN THE SWISSBOND EXCHANGE OFFER SCHERER RECEIVED ABOUT 4 MILLION OF SIXYEAR 8 NOTES CONVERTIBLE INTO MARQUEST COMMON STOCK AT 75 CENTS A SHARE SCHERER ALSO RECEIVED WARRANTS FOR 66 MILLION MARQUEST SHARES AT THE SAME CONVERSION PRICE PAYABLE IN CASH OR SCHERER COMMON STOCK SCHERER ALSO HAS A MAJORITY OF THE SEATS ON THE MARQUEST BOARD AS PART OF ITS JANUARY AGREEMENT TO PROVIDE A CAPITAL INFUSION OF AS MUCH AS 107 MILLION TO MARQUEST WHICH HAD LIQUIDITY PROBLEMS SINCE REGULATORS SUSPENDED ITS PRODUCTION FOR THREE MONTHS IN 1991 FOR FAILING TO COMPLY WITH MANUFACTURING STANDARDS 9306180094 930618 LEISURE & ARTS BOOKSHELF THE GREAT HISTORIAN THAT HISTORY FORGOT BY ROGER KIMBALL TODAY HE IS LITTLE MORE THAN A NAME IN THE CARD CATALOG BUT FOR DECADES THE ENGLISH HISTORIAN GEORGE MACAULAY TREVELYAN 18761962 WAS A TOWERING PUBLIC PRESENCE THE CONSCIENCE AS WELL AS THE CHRONICLER OF ENLIGHTENED LIBERALISM IN BRITAIN IN 1956 ON THE OCCASION OF HIS 80TH BIRTHDAY ONE OF HIS MANY ADMIRERS OPINED THAT TREVELYAN WAS PROBABLY THE MOST WIDELY READ HISTORIAN IN THE WORLD PERHAPS IN THE HISTORY OF THE WORLD TREVELYAN'S MAGISTERIAL STYLE A SOMEWHAT SPARSER VERSION OF THAT PERFECTED BY HIS GREAT UNCLE THOMAS MACAULAY COMBINED WITH HIS FERVENT BELIEF IN PROGRESS AND BENIGN NATIONALISM TO MAKE HIM A PUBLIC ICON HIS INDEFATIGABLE OUTPUT HE PRODUCED MORE THAN 25 BOOKS COUNTLESS ARTICLES AND NUMBERLESS LEADERS IN THE TIMES OF LONDON AND HIS BBC BROADCASTS ASSURED HIM SCHOLARLY ACCLAIM AND POLITICAL INFLUENCE IN GM TREVELYAN A LIFE IN HISTORY NORTON 288 PAGES 3295 DAVID CANNADINE SEEKS TO RESCUE FROM OBSCURITY A MAN WHO HAD WROTE ONE COMMENTATOR LIVED BY ADMIRATION TREVELYAN HAD LOOKED FONDLY ON CARLYLE'S NOTION OF HERO WORSHIP AND TENDED TO WRITE ABOUT FIGURES HE CONSIDERED HEROES INCLUDING JOHN BRIGHT THE LIBERAL ENGLISH STATESMAN AND SUBJECT OF ONE OF HIS BESTKNOWN BOOKS AND GIUSEPPE GARIBALDI THE ROMANTIC ITALIAN NATIONALIST WHO HELPED FORGE MODERN ITALY MR CANNADINE WHO TEACHES HISTORY AT COLUMBIA UNIVERSITY AND WHOSE EARLIER BOOKS INCLUDE THE DECLINE AND FALL OF THE BRITISH ARISTOCRACY FOLLOWS HIS SUBJECT'S LEAD IN BRINGING LARGE RESOURCES OF ADMIRATION TO HIS TASK WHILE MR CANNADINE PROVIDES AN OUTLINE OF TREVELYAN'S LIFE HE IS MORE INTERESTED IN REHABILITATING TREVELYAN'S WORK FOR THE CONTEMPORARY READER BESIDES THERE IS NOT MUCH GOSSIP ATTACHING TO TREVELYAN HIS LIFE WAS A PARAGON OF RESPECTABILITY HIS ELDEST BROTHER CHARLES HAD A PENCHANT FOR WANDERING AROUND THE MOORS NAKED AND LATE IN LIFE FATHERED A BASTARD BOB HIS OTHER BROTHER WROTE QUANTITIES OF BAD VERSE THAT HE PUBLISHED PRIVATELY BUT THAT WAS ABOUT THE EXTENT OF THE FAMILY ECCENTRICITY OUTWARDLY TREVELYAN'S LIFE WAS BLESSED WITH ONE SUCCESS AFTER THE NEXT HE NEVER APPLIED FOR A JOB HE DID NOT GET MR CANNADINE WRITES INDEED WITH THE EXCEPTION OF HIS TRINITY FELLOWSHIP HE NEVER APPLIED FOR A JOB AT ALL HE BELONGED TO THE DUAL ARISTOCRACY OF HIGH BIRTH AND PRODIGIOUS TALENT IN A SENSE MR CANNADINE WRITES THE HISTORY OF THE NATION WAS BUT THE HISTORY OF THE TREVELYANS WRIT LARGE HIS CV IS ALMOST COMICAL IN ITS PERFECTION THE THIRD SON OF SIR GEORGE OTTO TREVELYAN SECOND BARONET OF WALLINGTON YOUNG GEORGE ATTENDED HARROW AND TRINITY COLLEGE CAMBRIDGE IN 1903 TREVELYAN RESIGNED HIS FELLOWSHIP AT TRINITY AND WENT TO LONDON TO WRITE HE MARRIED JANET PENROSE WARD THE DAUGHTER OF THE GREAT VICTORIAN MORALIZER MRS HUMPHRY WARD IN 1904 BECAUSE OF HIS BAD EYESIGHT TREVELYAN COULD NOT FIGHT WHEN WAR BROKE OUT IN 1914 BUT HE SERVED WITH CONSPICUOUS BRAVERY IN A BRITISH AMBULANCE UNIT IN ITALY IN 1927 HE RETURNED TO CAMBRIDGE AS REGIUS PROFESSOR OF HISTORY AND IN 1940 AT THE INSTIGATION OF WINSTON CHURCHILL HE WAS APPOINTED MASTER OF TRINITY AN ORDER OF MERIT FOLLOWED SHORTLY AND ROYALTIES ROLLED IN WITH HIS FAMOUS TRILOGY ON GARIBALDI 19071911 HIS LAST GREAT WORK ENGLISH SOCIAL HISTORY 1944 PROMPTLY SOLD MORE THAN HALF A MILLION COPIES THE PREDOMINATING ATMOSPHERE OF TREVELYAN'S WORK IS EARNESTNESS IN THE ENTIRE CORPUS OF HIS MAJOR WORKS MR CANNADINE REMARKS THERE ARE NO JOKES HENRY JAMES DESCRIBED HIM AS OF GREAT ABILITY AND VIRTUE BUT PERHAPS OF RATHER LIMITED GRACE THIS LIMITATION EXTENDED TO HIS DRESS AND PERSON ONE CONTEMPORARY SUMMED HIM UP AS A VERY DISTINGUISHED BUT SLIGHTLY DILAPIDATED BIRD OF PREY WRITING HISTORY WAS FOR HIM A PUBLIC DUTY A MEANS OF ILLUMINATING THE PRESENT BY THE REVIVIFICATION OF THE PAST TREVELYAN IS GENERALLY HAILED BY WHIGS AS A GREAT PROPONENT OF PROGRESS AND LIBERALISM AND DERIDED BY TORIES FOR PARTISANSHIP BIAS AND A NAIVELY ROSY VIEW OF HISTORICAL PROGRESS BOTH SIDES HAVE A POINT MR CANNADINE CLEARLY RANGES HIMSELF WITH THE CHEERLEADERS BUT HE IS NOT BLIND TO THE FAILINGS IN HIS SUBJECT'S WORK AND PERSONALITY NOR IN FACT WAS TREVELYAN HIMSELF HE ADMITTED THAT HE HAD A WHIGGISH PREDILECTION FOR THOSE BITS OF HISTORY THAT HAVE CLEARCUT HAPPY ENDINGS AND LATE IN LIFE HE EVEN ALLOWED THAT HIS VOLUMES ON GARIBALDI WERE REEKING WITH BIAS THE SHOCK OF TWO WORLD WARS AND THE ADVENT OF MASS CULTURE DID MUCH TO UPSET TREVELYAN'S FAITH IN PROGRESS AND LIBERAL IDEOLOGY BY 1947 THE PASSIONATE DEFENDER OF GARIBALDI AND JOHN BRIGHT WROTE THAT THE ADVENT OF REAL DEMOCRACY BY WHICH HE MEANT MASS DEMOCRACY HAS COOKED THE GOOSE OF CIVILIZATION FOR US TODAY TREVELYAN'S GREATEST VIRTUE IS AS A HISTORICAL STORYTELLER AS MR CANNADINE FELICITOUSLY PUTS IT HIS WORK EXHIBITS MORE NARRATIVE VIGOR THAN EXPLANATORY RIGOR THIS IS NOT TO SAY THAT TREVELYAN WAS UNCONCERNED WITH THE TRUTH ONLY THAT HE SOUGHT TO SPARK THE MORAL IMAGINATION IN HIS EXPRESSION OF IT TRUTH IS THE CRITERION OF HISTORICAL STUDY HE WROTE BUT ITS IMPELLING MOTIVE IS POETIC ITS POETRY CONSISTS IN BEING TRUE 9306180093 930618 WHO'S NEWS NYCAL CHAIRMAN QUITS TRANSFERRING CONTROL TO CHANNEL HOTELS WASHINGTON NYCAL CO SAID THE TRANSFER OF CONTROL OF THE COMPANY TO CHANNEL HOTELS & PROPERTIES LTD WAS COMPLETED FOLLOWING THE RESIGNATION OF GRAHAM F LACEY CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT THE HOLDING COMPANY FOR OIL AND GAS PRODUCTION WHICH ALSO HAS INTERESTS IN FINANCIAL SERVICES SAID MR LACEY AGREED TO RESIGN AND NOT SEEK REELECTION AFTER DAVID KIRCH CHAIRMAN AND MAJORITY OWNER OF CHANNEL HOTELS & PROPERTIES SAID HE WANTED TO HAVE MORE INFLUENCE OVER THE COMPANY'S OPERATIONS AND FUTURE DIRECTION A SPOKESMAN DECLINED TO PROVIDE DETAILS MR LACEY COULDN'T BE REACHED TO COMMENT CHANNEL HOTELS ALSO AGREED TO ACQUIRE A MINIMUM OF 14 MILLION AND A MAXIMUM OF 41 MILLION SHARES OF NYCAL'S SHARES FROM CURRENT STOCKHOLDERS INCLUDING MR LACEY THE TRANSACTION IS EXPECTED TO CLOSE ON OR BEFORE JULY 31 AFTER WHICH CHANNEL HOTELS MAY OWN OVER 50 OF NYCAL STOCK IF THE MAXIMUM NUMBER OF SHARES ARE ACQUIRED 9306180092 930618 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BRITISH PRIME MINISTER JOHN MAJOR'S EMBATTLED GOVERNMENT CONFIRMED THAT IT PLANS TOUGH SPENDING LIMITS THROUGH NEXT YEAR TO CONTROL ITS BALLOONING DEFICIT THE ANNOUNCEMENT WAS DESIGNED TO UNDERLINE THE CONSERVATIVE GOVERNMENT'S COMMITMENT TO GROWTH THROUGH ANTIINFLATIONARY POLICIES WHILE DETAILS WON'T BE DISCLOSED UNTIL THE 199495 BUDGET IS UNVEILED IN NOVEMBER SPECULATION GREW ABOUT LOWER SPENDING AND HIGHER TAXES ON COMPANIES AND CONSUMERS CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE TOLD PARLIAMENT THAT THE GOVERNMENT WAS BUSINESS FRIENDLY AND BENT ON HELPING INDUSTRY AND COMMERCE TAKE ADVANTAGE OF AN EMERGING ECONOMIC RECOVERY BUT AFTER ALMOST THREE YEARS OF RECESSION CONSUMERS AREN'T EASILY ASSURED AND TORIES HOPE FOR AN ECONOMIC UPTURN TO BOOST MR MAJOR'S LOW PUBLIC RATINGS YESTERDAY BROUGHT DOSES OF GOOD NEWS THE MAY JOBLESS TOTAL FELL FOR THE FOURTH MONTH IN A ROW ANNUAL INFLATION WAS UNCHANGED AT 13 AND AUTO PRODUCTION ROSE 24 FROM A YEAR EARLIER TO THE HIGHEST LEVEL FOR MAY SINCE 1983 LITHUANIA WHICH SCRAPPED THE SOVIET RUBLE IN OCTOBER AND USES COUPONS FOR MONEY WILL INTRODUCE ITS OWN CURRENCY THE LITAS NEXT FRIDAY THE BALTIC COUNTRY'S COUPONS WHICH WILL BE WITHDRAWN FROM CIRCULATION BY THE END OF JULY MAY BE SWAPPED AT A RATE OF 100 FOR EACH LITAS THE LITAS'S EXCHANGE RATE IS TO BE KEPT BETWEEN 43 AND 47 TO THE US DOLLAR OTHER FORMER SOVIET REPUBLICS ALSO HAVE INTRODUCED THEIR OWN CURRENCIES OR COUPON SYSTEMS TO CUT THEIR LINKS TO THE RUBLE WHICH HAS PLUMMETED AS RUSSIAN INFLATION SOARED THE INDUSTRY ORGANIZATION FOR JAPAN'S NONLIFE INSURANCE COMPANIES WILL ACCEPT AS MEMBERS FOREIGN COMPETITORS OPERATING IN THE COUNTRY PEOPLE IN THE INDUSTRY SAID THE MARINE AND FIRE INSURANCE ASSOCIATION OF JAPAN WILL REVISE ITS CHARTER BY MARCH 31 THE END OF THE CURRENT FISCAL YEAR TO ALLOW THE FOREIGN MEMBERSHIPS THE DECISION FOLLOWS US PRESSURE ON JAPAN TO REMOVE BARRIERS TO OVERSEAS RIVALS IN ITS NONLIFE INSURANCE MARKET AFTER FALLING SINCE 1965 AND HITTING RECORD LOWS IN THE 1980S BIRTH RATES IN MOST RICH NATIONS HAVE BEGUN TO INCREASE SLOWLY AMID SOCIAL TRENDS THAT ENCOURAGE CHILDBEARING AN AUSTRALIAN SCIENTIST'S STUDY OF 31 COUNTRIES FOUND SLIGHT INCREASES IN BIRTH RATES OCCURRED IN MANY WESTERN EUROPEAN COUNTRIES AND IN CANADA THE US AUSTRALIA AND NEW ZEALAND SAID LINCOLN DAY A DEMOGRAPHER AT AUSTRALIAN NATIONAL UNIVERSITY BIRTH RATES IN ICELAND SWEDEN THE US AND NEW ZEALAND EXCEED THE PACE NEEDED TO MAINTAIN CURRENT POPULATION LEVELS ACCORDING TO THE STUDY BASED ON UNITED NATIONS DATA TO REMEDY A SHORTAGE OF SKILLED WORKERS AND HOMEGROWN TECHNOLOGY MALAYSIA MAY TRY TO LURE ITS SCIENTISTS BACK FROM ABROAD AS PART OF ITS EFFORT TO BECOME A DEVELOPED COUNTRY BY THE YEAR 2020 THE GOVERNMENT IS TARGETING EXPERTS IN HIGHTECHNOLOGY INDUSTRIES IT DRAFTED PROPOSALS FOR TAX BREAKS AND INCENTIVES TO MATCH WORKING CONDITIONS PAY AND OPPORTUNITIES FOR SCIENTISTS OVERSEAS PARTICULARLY IN SINGAPORE THE US CANADA AND AUSTRALIA IRELAND'S ECONOMIC GROWTH RATE WILL SLOW TO 22 THIS YEAR AND REGAIN SPEED TO 29 NEXT YEAR THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT FORECAST THE MULTILATERAL THINK TANK SAID THIS YEAR'S SLOWDOWN FROM A 27 RISE IN 1992 GROSS DOMESTIC PRODUCT COULD PUSH IRELAND'S UNEMPLOYMENT RATE UP TO 20 NEXT YEAR FROM 172 AT THE END OF 1992 THIS UNDERSCORES THE NEED FOR DISMANTLING GROWTH BARRIERS THE OECD SAID IT SUGGESTED IRELAND COULD BENEFIT FROM MORE COMPETITION SUCH AS IN TRANSPORTATION TO LOWER COSTS INFLATION COULD SLOW TO 31 THIS YEAR FROM 34 LAST YEAR CHINA IS SCRAMBLING TO UNLOAD TREASURY BONDS IN THIS YEAR'S 30 BILLION YUAN 525 BILLION OFFERING UNDERMINED BY HIGH INFLATION AND A CURRENCY DEVALUATION THE GOVERNMENT PLANNED A NATIONAL TELEVISION APPEAL IT ASKED LOCAL AUTHORITIES TO USE ALL MEASURES POSSIBLE TO PROMPT SALES AND SAID THE MASSES MUST BE ORGANIZED INTO REALIZING THEIR RESPONSIBILITY IN BUYING THESE BONDS IT ALSO WON'T ALLOW CITIES TO ISSUE THEIR OWN SECURITIES UNTIL THEIR TREASURYBOND QUOTA HAS BEEN SOLD LOCAL GOVERNMENTS OWN MANY CHINESE FIRMS SOME EMPLOYERS MIGHT FORCE THEIR WORKERS TO BUY THE BONDS THE OFFERING BEGAN MARCH 1 BUT ONLY 28 OF THE BONDS WERE SOLD BY MAY 31 ANNUAL INFLATION EXCEEDING 15 IN SOME CITIES AND A 25 CURRENCY DEVALUATION DIMMED THE ATTRACTION FOR THE THREEYEAR AND FIVEYEAR ISSUES WITH ANNUAL INTEREST RATES OF 1252 AND 1406 RESPECTIVELY FOREIGN INVESTMENT IN CHILE THIS YEAR THROUGH MAY MORE THAN DOUBLED TO 5416 MILLION FROM 2399 MILLION A YEAR EARLIER THE ECONOMY MINISTRY SAID AN AIRBUS INDUSTRIE A340 FOURENGINE JET SET A RECORD FOR THE LONGEST NONSTOP FLIGHT BY A COMMERCIAL AIRLINER TRAVELING 11868 MILES AT A CRUISING SPEED OF 545 MILES PER HOUR FROM FRANCE TO NEW ZEALAND IN 21 HOURS 32 MINUTES THE PREVIOUS RECORD WAS SET IN 1989 BY A BOEING CO 747 IN AN 11185MILE FLIGHT FROM BRITAIN TO AUSTRALIA 9306180091 930618 ENTERPRISE GOVERNMENT WATCH MOVE BY SENATORS ERODES SUPPORT FOR CLINTON'S BUDGET BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL A MOVE BY SENATE DEMOCRATS HAS FURTHER ERODED SMALL BUSINESS'S ALREADY LIMITED SUPPORT FOR THE CLINTON BUDGET ON WEDNESDAY FINANCE COMMITTEE DEMOCRATS REJECTED A PLAN TO INCREASE THE ANNUAL SMALLBUSINESS WRITEOFF FOR NEW EQUIPMENT PURCHASES TO 25000 FROM THE CURRENT 10000 AS THEY STRUGGLED TO AGREE ON A BILL ABANDONING THE ONE PROVISION IN THE BILL THAT WOULD HAVE HELPED VERY SMALL COMPANIES MAY PROMPT SMALLBUSINESS ORGANIZATIONS THAT WERE HOLDING THEIR FIRE ON THE BUDGET TO OPPOSE IT LOBBYISTS SAY PRESIDENT CLINTON HAD STRONGLY BACKED THE INCREASED WRITEOFF AS A WAY TO STIMULATE INVESTMENT AND SHOW HIS CONCERN FOR ENTREPRENEURS THE MEASURE ALLOWS SMALL COMPANIES TO WRITE OFF SOME EXPENSES IMMEDIATELY RATHER THAN OVER YEARS THE SMALL BUSINESS LEGISLATIVE COUNCIL ONE OF THE FEW MAJOR SMALLBUSINESS GROUPS THAT HAD SUPPORTED THE WHITE HOUSE'S BUDGET EFFORTS CALLED THE REJECTION OF THE EXPENSING MEASURE INSULTING IF ANYONE WANTED TO MAKE IT EASY TO BE AGAINST THIS BILL THE SENATE DEMOCRATS HAVE DONE THAT SAYS JOHN SATAGAJ THE COUNCIL'S PRESIDENT THE GROUP WILL MEET MONDAY TO DECIDE WHETHER TO CONTINUE ITS SUPPORT FOR THE BUDGET NATIONAL SMALL BUSINESS UNITED THE SECONDLARGEST LOBBYING GROUP FOR SMALL BUSINESSES HAD HELD ITS FIRE ON THE BUDGET MEASURE HOPING SOME DEFICIT REDUCTION MIGHT RESULT BUT NOW TOM CATOR A LOBBYIST FOR THE GROUP ASKS WITHOUT EXPENSING WHAT'S IN IT FOR US IT'S JUST A TAX INCREASE AND AN INCOME REDISTRIBUTION BILL GROUP OFFICIALS SCHEDULED A CONFERENCE CALL FOR LATE YESTERDAY TO DECIDE ON A POSITION MR CATOR SAID THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE LARGEST SMALLBUSINESS ORGANIZATION OPPOSED THE BUDGET EVEN BEFORE THE SENATE DEMOCRATS ACTED THOUGH THE HOUSE ALREADY HAS APPROVED A BUDGET BILL THE FULL SENATE STILL MUST VOTE ON ITS VERSION SMALLBUSINESS INTERESTS SAY THEY WILL FIGHT TO GET THE TAX WRITEOFF RESTORED WHEN SENATE AND HOUSE MEMBERS MEET TO RESOLVE THE TWO VERSIONS BUT LOBBYISTS SAY A CHANGE DEPENDS ON WHETHER PRESIDENT CLINTON INSISTS ON THE PROVISION THAT IS CONSIDERED A LONG SHOT THE PRACTICAL EFFECT OF THE WRITEOFF INCREASE WOULD BE LIMITED FOR LARGER SMALL BUSINESSES THE MEASURE WAS JUST WINDOWDRESSING SAYS JW KISLING PRESIDENT OF MULTIPLEX INC A ST LOUIS MAKER OF BEVERAGE DISPENSING EQUIPMENT SMALL BUSINESSES LOST OUT TO THE ELDERLY SAYS MR CATOR BECAUSE THE SENATE DEMOCRATS WERE UNWILLING TO MAKE DEEPER CUTS IN MEDICARE AND SOCIAL SECURITY SMALL FIRMS WORRY THAT NEW RULES COULD MAKE LANDFILL CLEANUP COSTS SOAR COMPANIES FEAR THAT ENVIRONMENTAL PROTECTION AGENCY REGULATIONS ON IMPLEMENTING THE SUPERFUND LAW DUE NEXT WEEK WILL FORCE BUSINESS TO PAY MOST OF THE COST OF CLEANING MUNICIPAL LANDFILLS SMALL BUSINESS GROUPS SAY THE AGENCY IS LIKELY TO TAKE THE FIRST STEP TOWARD ESTABLISHING A 4 CAP ON CITY GOVERNMENTS' SHARE OF THE COST OF CLEANING UP THEIR LANDFILLS THE MOVE WOULD MAKE SMALL AND LARGE BUSINESSES RESPONSIBLE FOR THE REST ABOUT 20 OF ALL HAZARDOUSWASTE SITES TARGETED BY THE FEDERAL SUPERFUND LAW ARE MUNICIPAL LANDFILLS THE EPA SAYS CLEANING A LANDFILL TYPICALLY COSTS 20 MILLION TO 30 MILLION SMALL BUSINESSES COULD GET HIT HARD EVEN THOUGH AN EPA PROCEDURE ALLOWS THEM TO BE NAMED MINIMAL CONTRIBUTORS TO A LANDFILL AND PAY A SMALL FLAT FEE NOTHING STOPS THE BIG COMPANIES FROM SUING SMALL ONES FOR PART OF THE CLEANUP SAYS BENJAMIN COOPER SENIOR VICE PRESIDENT OF THE PRINTING INDUSTRIES OF AMERICA SO WE HAVE TWO PROBLEMS CONVINCING EPA THAT A SMALL COMPANY DIDN'T CONTRIBUTE MUCH TO A LANDFILL AND THEN STAVING OFF SUITS FROM BIGGER COMPANIES AN EPA SPOKESWOMAN SAYS THE AGENCY HASN'T DECIDED WHETHER IT WILL MOVE NEXT WEEK TO CAP CITIES' LIABILITY SMALLBUSINESS ADVOCATES WANT THAT DECISION AND OTHER CHANGES IN THE SUPERFUND LAW TO BE MADE BY CONGRESS RATHER THAN THE EPA BUT THEY BELIEVE THE EPA OPPOSES REOPENING THE ISSUE IN CONGRESS LARGE AND SMALL BUSINESSES AND THE CITIES AGREE ON ONE ISSUE THAT SUPERFUND SHOULDN'T BANKRUPT PEOPLE SAYS WILLIAM BRESNICK A TEXACO OFFICIAL HEADING A GROUP OF BUSINESSES CONCERNED ABOUT THE LIABILITY ISSUE HOMEBASED BUSINESS OWNERS DIFFER LITLE IN WORK PATTERNS AND INCOME FROM OWNERS OF SIMILARSIZE BUSINESSES BASED IN OFFICES OR OTHER BUSINESS PREMISES ACCORDING TO A RECENT SMALL BUSINESS ADMINISTRATION STUDY ISOLATION IS A SMALLER FACTOR THAN ONCE ASSUMED THE STUDY FINDS ONE POSSIBLE REASON MANY OWNERS TREAT THE HOME AS A BASE OF ACTIVITIES RATHER THAN THE ONLY WORK SITE PROPOSED LAW WOULD ENSURE THAT SMALL FIRMS CAN BUY INTO THE SPECTRUM LEGISLATION THAT CONGRESS IS EXPECTED TO APPROVE NEXT MONTH WOULD REQUIRE THE FEDERAL COMMUNICATIONS COMMISSION TO DEVELOP FINANCING ARRANGEMENTS THAT WOULD LET SMALL BUSINESSES PARTICIPATE IN THE AUCTION OF PUBLICLY HELD RADIO FREQUENCIES THE REQUIREMENT IS DESIGNED TO HELP COMPANIES WITH INNOVATIVE IDEAS FOR NEW COMMUNICATIONS SERVICES THE LEGISLATION WOULD MAINLY GOVERN THE AUCTION TO THE PRIVATE SECTOR OF 200 MEGAHERTZ OF THE RADIO SPECTRUM PREVIOUSLY RESERVED FOR GOVERNMENT USE PART OF THAT SPECTRUM WILL BE ALLOCATED FOR THE CREATION OF AN INDUSTRY CALLED PERSONAL COMMUNICATION SERVICES CENTERED AROUND ADVANCED WIRELESS PHONES AND PERSONAL COMMUNICATION DEVICES WITHOUT FEDERAL RULES PROTECTING ENTREPRENEURS INDUSTRY GIANTS SUCH AS THE BIG CABLE AND TELEPHONE COMPANIES COULD BUY ALL THE AVAILABLE RADIO FREQUENCIES SAY AIDES TO REP ED MARKEY D MASS CHAIRMAN OF THE HOUSE COMMERCE COMMITTEE'S TELECOMMUNICATIONS SUBCOMMITTEE BUT UNDER THE PROPOSED LEGISLATION THE FCC COULD DEVISE SOMETHING LIKE A LONGTERM MORTGAGE TO HELP ENTREPRENEURS GET IN THE DOOR THE BILL WOULD ALSO DIRECT THE FCC TO TAKE SMALL BUSINESS'S INTERESTS INTO ACCOUNT IN DECIDING ON THE SIZE OF MARKETS FOR NEW COMMUNICATIONS SERVICES SALE OF THE RADIO SPECTRUM IS EXPECTED TO NET THE TREASURY ABOUT 72 BILLION OVER THE NEXT FIVE YEARS 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 9306180090 930618 OTC FOCUS STEAKHOUSE STOCKS CHARRED AS LONGHORN SAGS 40 OVERALL MARKET ENDS MIXED BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STEAKHOUSE STOCKS WHICH HAVE BEEN SIZZLING FOR MONTHS ON WALL STREET MAY BE TURNING BAD LED BY LONGHORN STEAKS' 40 PLUNGE YESTERDAY OVERALL THE OVERTHECOUNTER MARKET FINISHED MIXED THE NASDAQ COMPOSITE INDEX SLIPPED 031 OR 004 TO 69594 GAINERS TOPPED LOSERS 1351 TO 1311 ON TOTAL VOLUME OF 2454 MILLION SHARES UP FROM WEDNESDAY'S 2399 MILLION SHARES LONGHORN'S DISAPPOINTING EARNINGS ANNOUNCEMENT SPREAD FEAR AMONG INVESTORS WHO ALSO BAILED OUT OF LONE STAR STEAKHOUSE & SALOON AND OUTBACK STEAKHOUSE LONGHORN'S STOCK PLUMMETED 7 7/8 TO 11 5/8 OUTBACK 2 1/8 TO 30 5/8 AND LONE STAR EASED 1/2 TO 26 IT'S ABOUT TIME THEY GOT BEATEN DOWN SAID JAMES DEASY HEAD OF THE OTC TRADING DESK AT FIRST BOSTON THESE STOCKS WERE TRADING AT SUCH HIGH PRICETOEARNINGS MULTIPLES THAT ANY LITTLE DISAPPOINTING BLIP CAN KNOCK THE FLUFF RIGHT OUT OF THEM BEFORE THE FALL LONGHORN WAS TRADING AT A P/E RATIO OF 22 TIMES EARNINGS OF 90 CENTS A SHARE FOR THIS YEAR NOT EVEN CLOSE TO THE TOWERING LEVELS OF ITS COMPETITORS FOR 1993 EARNINGS ESTIMATES LONE STAR IS TRADING AT ABOUT 50 TIMES EARNINGS AND OUTBACK IS AROUND 36 TIMES SAID BARRY STOUFFER A RESTAURANT ANALYST WITH JC BRADFORD IN NASHVILLE TENN HE SAID HE LOWERED HIS LONGHORN ESTIMATE TO 65 CENTS WHICH NOW GIVES THE STOCK A MULTIPLE OF ABOUT 18 TIMES CERTAINLY SOME OF THE RESTAURANT STOCKS SHOULD COME DOWN IF THE VALUATION LEVELS ARE TOO HIGH RELATIVE TO THE GROWTH LEVEL AND THE RISK ASSOCIATED WITH EARNINGS HE SAID IN THIS KIND OF MARKET PEOPLE ARE GOING TO BE QUICK TO SELL AND THAT WILL BE TRANSMITTED TO SOME OTHER STOCKS WHETHER OR NOT THEY DESERVE IT ATLANTABASED LONGHORN SAID IT EXPECTS ITS SECONDQUARTER EARNINGS WILL BE ONLY 14 CENTS OR 15 CENTS A SHARE MISSING ANALYSTS' ESTIMATES OF 20 CENTS TO 22 CENTS A SHARE IN THE YEAREARLIER PERIOD THE COMPANY EARNED 15 CENTS A SHARE GEORGE W MCKERROW JR PRESIDENT OF LONGHORN CITED TWO MAIN FACTORS FOR THE LETDOWN FIRST REVENUES AT SEVERAL OF OUR NEWER COMPANYOWNED LONGHORN STEAKS HAVE BEEN LOWER THAN EXPERIENCE LED US TO EXPECT ESPECIALLY IN MARKETS THAT WE HAVE ONLY INITIALLY PENETRATED SECOND FOOD COSTS FOR THE QUARTER WILL BE HIGHER THAN THE PREVIOUS QUARTER SEVERAL TRENDY RESTAURANT STOCKS ALSO TRADING AT LOFTY LEVELS WERE BURNED BY THE NEWS SHARES OF THE ITALIANTHEMED BERTUCCI'S UNDER THE BERTUCCI'S HOLDING NAME TUMBLED 1 1/8 TO 19 3/8 CHECKERS DRIVEIN RESTAURANTS A 1950S ART DECO DINER WITH QUICKSERVICE HAMBURGERS FELL 1/2 TO 19 LAST FRIDAY SHOWBIZ PIZZA TIME SKIDDED 35 WHEN THE KIDDIERESTAURANT CHAIN FEATURING CHUCK E CHEESE PROJECTED DISAPPOINTING SECONDQUARTER PROFIT YESTERDAY THE STOCK EASED 1/8 TO 19 1/2 ZILOG DIVED 4 TO 26 FOLLOWING COMMENTS BY COMPANY OFFICIALS AT A PRESENTATION TO ANALYSTS MARKET PLAYERS SAID THE CAMPBELL CALIF INTEGRATEDCIRCUIT PRODUCTS CONCERN REPORTEDLY INDICATED THAT SECONDQUARTER REVENUE MIGHT FALL SLIGHTLY BELOW EXPECTATIONS BECAUSE OF WEAKNESS IN DISKDRIVERELATED PRODUCTS EARNINGS ESTIMATE CHANGES AND A RATING CUT SENT THE MOST ACTIVE ISSUE CHARMING SHOPPES 1 LOWER TO 13 ALEX BROWN & SONS DOWNGRADED THE BENSALEM PA OPERATOR OF A CHAIN OF WOMEN'S SPECIALTY APPAREL STORES TO NEUTRAL FROM BUY CITING AMONG OTHER THINGS APPARENTLY SLUGGISH SALES THE BROKERAGE FIRM ALSO CUT ITS FISCAL SECONDQUARTER EARNINGS ESTIMATE AS DID DEAN WITTER REYNOLDS ALTHOUGH IT KEEPS AN ACCUMULATE RATING ON THE STOCK ACTIVELY TRADED COSTCO WHOLESALE OF KIRKLAND WASH GAVE UP 1 TO 18 GOLDMAN SACHS REMOVED THE COMPANY'S STOCK FROM ITS RECOMMENDED LIST AND TRIMMED ITS FISCAL 1993 AND 1994 EARNINGS ESTIMATES FIVE CENTS A SHARE EACH THE BROKERAGE FIRM CITED NEARTERM EARNINGS UNCERTAINTY RELATED TO THE COMPANY'S ANNOUNCED MERGER WITH PRICE CO MEANWHILE SAN DIEGOBASED PRICE SKIDDED 1 1/2 TO 37 AFTER REPORTING FISCAL THIRDQUARTER EARNINGS OF 37 CENTS A DILUTED SHARE DOWN FROM 57 CENTS A YEAR EARLIER BUT PAINEWEBBER RAISED ITS RATING TO ATTRACTIVE FROM NEUTRAL CITING THE COMPANY'S PLANNED MERGER WITH COSTCO WHOLESALE MICROPROSE OF HUNT VALLEY MD JUMPED 1 TO 6 AFTER ANNOUNCING THAT IT HAS TENTATIVELY AGREED TO MERGE WITH SPECTRUM HOLOBYTE THE SOFTWARE COMPANY SAID IT WILL RECEIVE A 10 MILLION CASH INFUSION FROM SPECTRUM PRIOR TO THE MERGER OTHER TECHNOLOGY STOCKS WERE MOSTLY LOWER APPLE COMPUTER DROPPED 1 TO 41 1/4 ON HEAVY VOLUME AUTODESK SHED 1 3/4 TO 54 AND BMC SOFTWARE EASED 1 1/2 TO 47 7/8 CAITLIN MOLLISON CONTRIBUTED TO THIS ARTICLE 9306180089 930618 LETTERS TO THE EDITOR RIGHTFULLY CONFUSED REGARDING PASS NATIONAL SERVICE CRIPPLE CHARITY BY BRUCE CHAPMAN ON YOUR MAY 24 EDITORIAL PAGE I AM CONFUSED ON ONE POINT MR CHAPMAN REFERS TO THE INADEQUACY OF THE GOVERNMENT SALARY OFFERED TO ATTRACT VOLUNTEERS AND REFERS IN SEVERAL PLACES TO SALARIES PAID TO VOLUNTEERS BUT AT THE BEGINNING OF THE ARTICLE HE DISCUSSED THE VIRTUES OF TRUE VOLUNTARISM I AM A VOLUNTEER AT TWO LOCAL CHARITIES AND NATURALLY I AM NOT PAID HOW CAN SOMEONE RECEIVE A SALARY AND STILL BE A VOLUNTEER IS THIS NOT A CONTRADICTION IN TERMS 9306180088 930618 EUROPE'S STATE PHONE SYSTEMS CALL FOR INVESTORS BY RICHARD L HUDSON AND BOB HAGERTY STAFF REPORTERS OF THE WALL STREET JOURNAL BERLIN EAST EUROPEANS ARE RUSHING AHEAD WITH PLANS TO ATTRACT WESTERN INVESTORS TO THEIR STATE TELEPHONE COMPANIES DESPITE WARNINGS THAT EXPECTATIONS MIGHT BE TOO HIGH IN THE CZECH REPUBLIC THE ECONOMICS MINISTRY IS CHOOSING WESTERN LEGAL ADVISERS AND DRAFTING NEW TELECOMMUNICATIONS LEGISLATION FOR THE SALE NEXT YEAR OF UP TO 27 OF THE STATE PHONE COMPANY SPT TELECOM THE OFFER IS INTENDED TO RAISE SOME OF THE 46 BILLION THAT THE CZECHS FIGURE THEY NEED TO MODERNIZE THEIR PHONE NETWORK BETWEEN NOW AND 2000 IN LATVIA AND HUNGARY MEANWHILE BIDDING CONTESTS FOR SHARES IN STATE PHONE COMPANIES ARE ENTERING THE FINAL STAGE WITH BOTH COUNTRIES AIMING TO CHOOSE WESTERN INVESTORS BY YEAR'S END WOULDBE BUYERS ARE SCRAMBLING TO FORM WINNING CONSORTIA AT AN EASTMEETSWEST CONFERENCE HERE RECENTLY SENIOR EXECUTIVES OF DEUTSCHE BUNDESPOST TELEKOM U S WEST INC AND OTHER FIRMS HUDDLED TO DISCUSS TACTICS THOUGH DECLINING TO NAME POTENTIAL ALLIES RICHARD CALLAHAN HEAD OF U S WEST'S INTERNATIONAL OPERATIONS CONFIRMED THAT HIS COMPANY IS TRYING TO PUT TOGETHER A PARTNERSHIP THAT WOULD MAKE SENSE IN HUNGARY FOR THE MULTINATIONALS THE GOLDRUSH MENTALITY STEMS IN PART FROM THE SHEER NOVELTY OF THE INVESTMENTS SINCE THE EAST OPENED MOST WESTERN TELECOMMUNICATIONS VENTURES HAVE BEEN IN SPECIALIZED FIELDS SUCH AS CELLULAR SERVICE OR INTERNATIONAL CALLING BUT PRIVATIZATION OFFERS A PIECE OF THE MAIN ACTION THE BASIC TELEPHONE SERVICE IN A REGION WITH 516 MILLION PHONE LINES TODAY AND BIG PLANS TO DOUBLE THE NUMBER BY 2000 AT A COST OF AT LEAST 140 BILLION SOME CASSANDRAS HOWEVER WONDER HOW LONG INVESTORS' ENTHUSIASM WILL LAST TIMOTHY NULTY CHIEF TELECOMMUNICATIONS ECONOMIST FOR THE WORLD BANK'S INTERNATIONAL FINANCE CORP WARNED AT THE BERLIN MEETING THAT THE MULTINATIONALS DON'T HAVE BOTTOMLESS POCKETS HE ALSO SPECULATED THAT COMPANIES MIGHT BECOME PREOCCUPIED AS COMPETITIVE BATTLES HEAT UP IN WESTERN MARKETS AND A RAFT OF PLANNED PRIVATIZATIONS ELSEWHERE IN THE WORLD MIGHT DIMINISH THE LUSTER OF RISKIER EAST EUROPEAN STOCK ISSUES ROD DOWLER HEAD OF HIGHTECHNOLOGY PRACTICE AT ACCOUNTING AND CONSULTING FIRM KPMG PEAT MARWICK HAS WARNED THAT PRIVATIZATIONS WORLDWIDE MIGHT ATTEMPT TO RAISE 150 BILLION THROUGH 1995 ON TOP OF 110 BILLION RAISED IN THE PAST DECADE TELECOMMUNICATIONS STOCKS AREN'T RARE ANYMORE HE SAID BUT EAST EUROPEANS DESPERATE FOR CASH TO UPGRADE THEIR CREAKY OLD NETWORKS HAVE FEW CHOICES BUT TO PROCEED THE CZECHS THE MOST RECENT TO FIRM UP A PRIVATIZATION PLAN HOPE TO SELECT ONE OR MORE WESTERN INVESTORS AS EARLY AS NEXT SPRING SAID LADISLAV CHRUDINA DEPUTY ECONOMY MINISTER HE DECLINED TO REVEAL HOW MUCH HE HOPES A 27 STAKE IN SPT TELECOM MIGHT FETCH THOUGH ANALYSTS HAVE SAID IT MIGHT BE WORTH 400 MILLION OR MORE TO HELP PLAN HOW TO REGULATE THE PRIVATIZED COMPANY MR CHRUDINA SAID THE MINISTRY IS DISCUSSING THE POSSIBILITY OF TURNING TO SPECIALISTS AT THE US FEDERAL COMMUNICATIONS COMMISSION FOR REGULAR DOSES OF ADVICE 9306180087 930618 TECHNOLOGY DELL REFOCUSES ON GROUNDWORK TO COPE WITH ROCKETING SALES BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL AUSTIN TEXAS DELL COMPUTER CORP SAYS ITS INTERNAL CONTROLS ARE HAVING DIFFICULTY KEEPING UP WITH ITS ZOOMING GROWTH OFFICIALS OF THE COMPANY WHICH HAS SEEN SALES MORE THAN TRIPLE IN THE PAST TWO YEARS SAID IN INTERVIEWS THIS WEEK AND IN REMARKS TO SHAREHOLDERS YESTERDAY THAT THEY ARE BATTLING A SERIES OF SHORTCOMINGS IN THE COMPANY'S INTERNAL PROCESSES AND COMPUTER INFORMATION SYSTEM THE PROBLEMS DELL OFFICIALS SAY HAVE MADE IT DIFFICULT FOR THE COMPANY TO TRACK ITS INVENTORY AND TO ACCURATELY PROJECT SUPPLY AND DEMAND FOR THE COMPONENTS THAT GO INTO ITS PERSONAL COMPUTERS AT YESTERDAY'S ANNUAL MEETING IN AUSTIN MICHAEL S DELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY PLANS TO FOCUS ITS ATTENTION IN COMING MONTHS ON IMPROVING AND INTEGRATING ITS MANUFACTURING OPERATIONS AND ON BEEFING UP ITS INTERNAL FORECASTING MODELS IN BOTH AREAS MR DELL SAID THE COMPANY IS OUTDATED CONSIDERING ITS SIZE THE SYSTEMS AND THE PROCESSES IN THE COMPANY DIDN'T GROW AS FAST AS THE BUSINESS HE SAID THOUGH MR DELL DECLINED TO SAY HOW MUCH THE IMPROVEMENTS WILL COST THE COMPANY HAS SAID IT DOESN'T EXPECT TO REPORT YEARTOYEAR EARNINGS GROWTH UNTIL THE FISCAL FOURTH QUARTER IN ADDITION MR DELL SAID HE EXPECTS THE COMPANY'S REVENUE TO GROW BY 1 BILLION TO ABOUT 3 BILLION DURING THE FISCAL YEAR ENDING JAN 31 THAT PROJECTION IS SOMEWHAT LOWER THAN THE 34 BILLION FORECAST MR DELL MADE THIS SPRING DELL BLAMED ITS INTERNAL DEFICIENCIES AS WELL AS OTHER MANUFACTURING AND DESIGN PROBLEMS FOR ITS DECISION LAST MONTH TO SHELVE A LINE OF NEW NOTEBOOK COMPUTERS AND CANCEL DEVELOPMENT WORK ON OTHER COMING NOTEBOOK PRODUCTS THE MOVE RESULTED IN A 20 MILLION REDUCTION IN THE COMPANY'S FISCAL FIRSTQUARTER EARNINGS AND SENT THE PRICE OF DELL'S STOCK ONCE A WALL STREET FAVORITE DOWN SHARPLY THE STOCK WHICH TRADED AT ABOUT 32 A SHARE BEFORE THE NOTEBOOK NEWS WAS DISCLOSED CLOSED DOWN 875 CENTS OR 45 TO 1850 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY BUT DELL OFFICIALS NOW SAY THAT THE COMPANY'S INTERNAL PROBLEMS EXTEND BEYOND NOTEBOOKS I DO BELIEVE THE ISSUES THE COMPANY FACES ARE QUITE SERIOUS MR DELL TOLD SHAREHOLDERS JOHN K MEDICA ONE OF TWO FORMER APPLE COMPUTER INC EXECUTIVES RECENTLY HIRED TO JAZZ UP DELL'S PRODUCT LINE SAID HE STILL IS TRYING TO UNRAVEL THE STATUS OF DELL'S INVENTORY FOR THE CANCELED NOTEBOOK PROJECTS MR MEDICA SAID IT HAS BEEN DIFFICULT TO TRACK HOW MUCH COMPONENT INVENTORY IS COMING IN AND WHAT THE COMPANY IS OBLIGATED TO PAY FOR THIS IS LIKE BUILDING A HIGHPERFORMANCE CAR WHILE GOING AROUND THE RACETRACK HE SAID WHEN YOU'RE GROWING THIS QUICKLY IT'S A CHALLENGE DELL ANALYSTS WHO WERE CAUGHT FLATFOOTED BY THE NOTEBOOK PROBLEMS LAST MONTH SAID THEY DON'T KNOW WHAT TO EXPECT FROM THE COMPANY NEXT THEY HAVE A BIG CREDIBILITY PROBLEM SAID ANTOINE J TRISTANI A PERSONALCOMPUTER ANALYST AT SOUTHCOAST CAPITAL CORP IN AUSTIN ARE THERE OTHER SKELETONS IN THE CLOSET KEVIN MCCARTHY A PERSONALCOMPUTER ANALYST AT MABON SECURITIES IN NEW YORK SAID DELL'S RECENT HICCUP COULD PLAGUE THE COMPANY FOR SOME TIME IF YOU LOSE A LITTLE MOMENTUM IT'S MORE DIFFICULT IN THIS ENVIRONMENT TO CATCH UP HE SAID IT'S HARD TO SAY HOW SOON DELL CAN GET ITS SYSTEM IN ORDER TO SUPPORT THE GROWTH 9306180086 930618 TECHNOLOGY OPPOSITION TAKES AIM AS CLINTON SELECTS DESIGN FOR SCALEDDOWN SPACE STATION BY ASRA Q NOMANI STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PITCHED PLANS FOR A SMALLER CHEAPER SPACE STATION THAT ADMINISTRATION OFFICIALS INSISTED WOULDN'T JUST BECOME A TINKERTOY IN THE SKY BUT CRITICS STILL BLASTED IT AS TOO EXPENSIVE OPPONENTS OF THE HIGHTECHNOLOGY PROJECT LINED UP TO ATTACK THE NEW DESIGN THEIR QUICK OPPOSITION MAKES IT CLEAR THAT MR CLINTON FACES A BATTLE SELLING CONGRESS ON EVEN A LESSEXPENSIVE SPACE LABORATORY WHAT'S MORE THE NEW DESIGN WOULDN'T SAVE AS MUCH AS MR CLINTON ORIGINALLY WANTED THE NEW PLAN WOULD HAVE THE GOVERNMENT SPENDING 105 BILLION OVER THE NEXT FIVE YEARS TO BUILD A SPACE LAB REACHABLE BY ASTRONAUTS IN A SPACE SHUTTLE COMPARED WITH 144 BILLION UNDER THE OLD SCHEME ADMINISTRATION OFFICIALS ESTIMATE IT THEN WOULD COST ABOUT 14 BILLION A YEAR TO OPERATE COMPARED WITH A PROJECTED 24 BILLION OPERATING COST FOR THE PREVIOUS DESIGN THE GOVERNMENT ALREADY HAS SPENT 9 BILLION ON THE PROJECT AND HAS GOTTEN LITTLE MORE THAN BLUEPRINTS FOR IT MR CLINTON AND HIS ADVISERS CHOSE THE SCALEDDOWN MORE MODULAR DESIGN FROM THREE OPTIONS PRESENTED BY A COMMISSION SET UP THREE MONTHS AGO TO REVIEW THE SPACE STATION PROGRAM SPACE STATION ADVOCATES BENEFITED FROM THE INVOLVEMENT OF VICE PRESIDENT GORE WHO LED THE REVIEW AND WAS LONG A FAN OF THE PROJECT WHEN HE WAS A SENATOR FROM TENNESSEE REP DICK ZIMMER R NJ SAID HE AND OTHER FOES OF THE SPACE STATION EXPECT TO OFFER AN AMENDMENT TO KILL THE PROJECT IN A NATIONAL AERONAUTICS AND SPACE ADMINISTRATION SPENDING BILL HE CALLED THE NEW DESIGN LESS CAPABLE THAN THE ONE IT REPLACES CONTRACTORS RESPONDED WITH RELIEF TO THE PRESIDENT'S DECISION A SPOKESMAN FOR MCDONNELL DOUGLAS CORP'S AEROSPACE UNIT CALLED THE ANNOUNCEMENT GOOD NEWS BUT ADDED THE SCALEDDOWN VERSION COULD MEAN REDUCTIONS AMONG 4200 EMPLOYEES ASSIGNED TO THE PROGRAM OTHER CONTRACTORS ALSO COULDN'T PREDICT THE EFFECT OF THE PRESIDENT'S DECISION ON THEM THEY INCLUDE BOEING CO WHICH HAS 1800 EMPLOYEES WORKING ON THE SPACE STATION ROCKWELL INTERNATIONAL CORP WHICH HAS A 1000MEMBER SPACE STATION WORK FORCE INVOLVED IN DESIGNING AND BUILDING THE STATION'S POWER SYSTEM AND GRUMMAN CORP WHICH EMPLOYS 850 PEOPLE ON THE PROJECT SARAH LUBMAN IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9306180085 930618 WHO'S NEWS WASSERSPRING NAMED TO TWO HIGH POSTS AT MICHAEL ANTHONY MOUNT VERNON NY MICHAEL ANTHONY JEWELERS INC SAID IT NAMED FREDRIC R WASSERSPRING 46 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER AND LYNN CALERI 37 VICE PRESIDENT AND CONTROLLER MR WASSERSPRING RECENTLY RESIGNED AS FIRST VICE PRESIDENT OF METALS TRADING AT PRUDENTIAL SECURITIES INC AND AS CHAIRMAN AND PRESIDENT OF ITS AFFILIATE PRUDENTIALBACHE METAL CO MR WASSERSPRING WILL ASSUME THE POST OF PRESIDENT FROM MICHAEL PAOLERCIO 42 WHO WILL CONTINUE TO CONCENTRATE ON THE SALES AND RETAIL SIDE OF THE BUSINESS AND THE POST OF CHIEF OPERATING OFFICER FROM ANTHONY PAOLERCIO 40 WHO WILL CONCENTRATE ON THE PRODUCTION AND RESEARCHANDDEVELOPMENT SIDE OF THE BUSINESS THE PAOLERCIO BROTHERS WHO ARE FOUNDERS OF THE COMPANY WILL CONTINUE AS COCHAIRMEN AND MICHAEL PAOLERCIO WILL CONTINUE AS CHIEF EXECUTIVE OFFICER MS CALERI WHOSE POSITION IS NEWLY CREATED HAD BEEN A CERTIFIED PUBLIC ACCOUNTANT AND CONSULTANT TO MORGAN STANLEY TRUST CO A UNIT OF MORGAN STANLEY GROUP INC IN NEW YORK 9306180084 930618 YOUR MONEY MATTERS WEEKEND REPORT RATING THE RISK OF INVESTING AT A MARKET PEAK BY EARL C GOTTSCHALK JR STAFF REPORTER OF THE WALL STREET JOURNAL IT'S MANY AN INVESTOR'S NIGHTMARE THESE DAYS WITH STOCK PRICES NEAR RECORD HIGHS YOU FINALLY CONVINCE YOURSELF TO MOVE A LARGE PORTION OF YOUR MONEY INTO STOCKS THEN BAM THE MARKET TAKES A DIVE AND THOSE GREAT STOCKS OR MUTUAL FUNDS SINK LIKE A ROCK BEATEN DOWN BY A BEAR MARKET YOU CASH OUT AT A LOSS SOME MUTUALFUND MARKETERS ARE TRYING TO SOOTHE THAT WORRY BY RECITING SOME RECENT HISTORY AND SHOWING THE BENEFITS OF INVESTING REGULARLY AND HOLDING ON THINKING OF BUYING AT THE MARKET PEAK GO AHEAD MUTUAL FUND NEWS SERVICE A PUBLICATION SPONSORED BY MUTUALFUND COMPANIES SAYS IN A RECENT NEWSLETTER THAT CAN BE GOOD ADVICE FOR PEOPLE WHO HAVE THE DISCIPLINE TO INVEST THE SAME AMOUNT OF MONEY YEAR AFTER YEAR AFTER YEAR NO MATTER WHERE THE MARKET IS AT THE TIME AND HOLD ON CALLED DOLLARCOST AVERAGING THIS APPROACH WORKS WELL FOR INVESTORS WITH A LONG TIME HORIZON BECAUSE IN THE LONG RUN STOCKS DO TEND TO BEAT OTHER INVESTMENTS BUT A NUMBER OF INVESTMENT PROFESSIONALS CAUTION THAT FOCUSING ON THE LONG TERM CAN UNDERSTATE THE DANGER OF MOVING A LARGE PART OF A PERSON'S MONEY INTO STOCKS AT THE WRONG TIME FOR THOSE WITH SHORTER TIME HORIZONS A SEVERE BEAR MARKET COULD HAVE A SIGNIFICANT IMPACT SAYS JAMES B STACK PRESIDENT OF INVESTECH RESEARCH AN INVESTMENT RESEARCH FIRM IN WHITEFISH MONT SUFFERING A 40 LOSS IN A BEAR MARKET AND HAVING TO WAIT FIVE YEARS TO BREAK EVEN CAN BE DEVASTATING ON PLANS TO RETIRE OR TO FUND A CHILD'S OR GRANDCHILD'S COLLEGE EDUCATION OTHER PROS NOTE THAT IT TAKES A TREMENDOUS AMOUNT OF DISCIPLINE TO INVEST MONEY EVERY YEAR WHEN STOCK PRICES KEEP DECLINING OR SIMPLY LANGUISH ONE OF THE BIGGEST PROBLEMS INVESTORS HAVE IS CONTROLLING THEIR EMOTIONS SAYS ARTHUR MICHELLETTI CHIEF INVESTMENT STRATEGIST AT BAILARD BEIHL & KAISER A SAN MATEO CALIF MONEYMANAGEMENT FIRM IN MARKET SETBACKS THEY DON'T STAY WITH THE PLAN THEY SELL AT THE BOTTOM WHEN THEY SHOULD BUY WHAT'S THE RISK OF INVESTING AT THE TOP MUTUAL FUND NEWS SERVICE CITES A STUDY BY THE AMCAP MUTUAL FUND THAT PROVES YOU COULD HAVE INVESTED 5000 IN THE STOCK MARKET AT THE PEAK OF THE MARKET EVERY YEAR OVER THE PAST 20 YEARS AND STILL QUADRUPLED YOUR INVESTMENT BUT ALONG THE WAY THERE CAN BE SOME AWFULLY HARROWING PERIODS TRUE PEOPLE WHO INVESTED JUST BEFORE THE PLUNGE DURING THE PAST THREE BEAR MARKETS 1981 1987 AND 1990 RECOUPED THEIR LOSSES WITHIN 20 MONTHS SAYS INVESTECH'S MR STACK BUT THESE RECENT BEAR MARKETS WERE THE LEAST PAINFUL IN TERMS OF RECOVERY TIME AND THE SHORTEST OF THIS CENTURY THERE HAVE BEEN 17 BEAR MARKETS DEFINED AS A PERIOD IN WHICH THE DOW JONES INDUSTRIAL AVERAGE LOST 20 OR MORE IN THIS CENTURY MR STACK SAYS AND THE AVERAGE RECOVERY TIME IS FIVE YEARS HE SAYS INVESTORS WHO BOUGHT BEFORE THE AVERAGE BEAR MARKET LOST ABOUT 35 OF THEIR INVESTMENT DURING THE BEAR MARKET HE SAYS THAT DOESN'T INCLUDE REINVESTED DIVIDENDS BECAUSE DIVIDEND DATA AREN'T AVAILABLE FOR THE DOW FROM 1900 TO 1927 HE SAYS IT ALSO EXCLUDES THE 1929 CRASH WHEN INVESTORS WHO BOUGHT AT THE PEAK IN AUGUST 1929 LOST 834 WHEN THE MARKET BOTTOMED IN JUNE 1932 INCLUDING DIVIDENDS THE 197374 BEAR MARKET WAS PARTICULARLY DEVASTATING FOR INVESTORS WHO BOUGHT IN 1972 SAYS LAURENCE B SIEGEL MANAGING DIRECTOR OF IBBOTSON ASSOCIATES INC A CHICAGO INVESTMENT CONSULTING FIRM PEOPLE TODAY ARE ASTONISHED TO HEAR THAT THE STANDARD & POOR'S 500 STOCK INDEX INCLUDING DIVIDENDS DROPPED 426 FROM ITS PEAK IN DECEMBER 1972 TO ITS BOTTOM IN SEPTEMBER 1974 HE SAYS THOSE WHO INVESTED AT THE PEAK IN 1972 HAD TO WAIT 3 1/2 YEARS JUST TO BREAK EVEN MR SIEGEL SAYS MEANWHILE INFLATION WAS RUNNING AT A HIGH RATE DURING THAT PERIOD AND ERODING THE VALUE OF INVESTORS' MONEY INVESTORS HAD TO WAIT NEARLY 13 YEARS UNTIL THEIR TOTAL RETURNS INCLUDING DIVIDENDS EQUALED THE RETURNS THEY COULD HAVE HAD BY INVESTING IN RISKLESS TREASURY BILLS HE SAYS SOME PROS DON'T THINK INVESTORS SHOULD USE RECENT HISTORY AS A GUIDE TO THE FUTURE THE PAST 20 YEARS HAVE INCLUDED ONE OF THE GREATEST BULL MARKETS IN HISTORY SAYS MR SIEGEL DURING THE PAST 10 YEARS STOCKS GAVE INVESTORS A 162 COMPOUND AVERAGE ANNUAL RETURN HE SAYS IN STUDYING OVERLAPPING 10YEAR PERIODS THAT'S ONE OF THE HIGHEST SINCE THE 1950S HE ADDS INDEED IF YOU TOOK THE 20 YEARS ROUGHLY PRECEDING 1973 TO 1992 THE 1955 TO 1974 PERIOD AND INVESTED 5000 A YEAR AT THE WORST POSSIBLE TIME YOUR RESULTS WOULD HAVE BEEN FAR DIFFERENT FROM THOSE IN THE MORE RECENT 20YEAR PERIOD ACCORDING TO MR STACK INSTEAD OF QUADRUPLING YOUR MONEY YOU WOULD ONLY HAVE AMASSED 127168 INCLUDING DIVIDENDS HE SAYS A PERSON WOULD HAVE AMASSED 166574 DURING THE SAME PERIOD BY PUTTING THE SAME 5000 A YEAR IN 90DAY US TREASURY BILLS AND ROLLING THEM OVER HE SAYS NONE OF THIS MEANS THAT INVESTORS SHOULD AVOID STOCKS JUST BECAUSE THE MARKET IS UP EVEN IF IT TURNS OUT THAT THEIR TIMING IS DEAD WRONG THE HISTORICAL EVIDENCE SUGGESTS THE NUMBERS EVENTUALLY TURN IN THEIR FAVOR IN THE 63 OVERLAPPING FIVEYEAR PERIODS SINCE THE END OF 1925 THERE HAVE BEEN ONLY SEVEN WHEN STOCKS LOST MONEY ACCORDING TO DATA COMPILED BY IBBOTSON IF YOU DON'T HAVE A LONG TIME HORIZON THOUGH WHOLESALE SWITCHING TO STOCKS FROM CERTIFICATES OF DEPOSIT AND MONEY FUNDS PROBABLY ISN'T A GOOD IDEA RIGHT NOW MANY PROS SAY INSTEAD THEY SUGGEST MOVING INTO THE MARKET GRADUALLY KURT BROUWER PARTNER IN THE SAN FRANCISCO INVESTMENT MANAGEMENT FIRM OF BROUWER & JANACHOWSKI SUGGESTS INCREASING YOUR YIELD OVER CDS AND MONEY MARKETS BY PUTTING MOST OF YOUR NEW INVESTMENT MONEY IN A SHORTTERM BOND FUND AND A SMALLER AMOUNT IN STOCKS WHEN STOCK PRICES ARE LOWER INVEST MORE HEAVILY IN STOCKS HE SAYS OR HE ADDS INVEST IN LESS AGGRESSIVE STOCK OR HYBRID FUNDS THAT WON'T FALL AS MUCH IN A BEAR MARKET EXAMPLES BALANCED FUNDS LIKE VANGUARD WELLINGTON 60 STOCKS40 BONDS OR STOCK FUNDS HOLDING A LOT OF CASH LIKE JANUS FUND EQUITYINCOME FUNDS THAT INVEST IN STOCKS THAT PAY SIZABLE DIVIDENDS WHICH ACT AS A CUSHION DURING A FALL ARE ANOTHER POSSIBILITY MR BROUWER RECOMMENDS VANGUARD EQUITY INCOME FUND WHICH HAS A 12MONTH YIELD OF 42 ALONG WITH US STOCKS AND BONDS INVEST IN INTERNATIONAL STOCKS AND BONDS TO SPREAD YOUR RISK SAYS KEN GREGORY PARTNER IN LITMAN/GREGORY AN ORINDA CALIF INVESTMENTMANAGEMENT FIRM MANY EUROPEAN STOCKS AREN'T NEARLY AS OVERVALUED AS US STOCKS HE SAYS MR GREGORY RECOMMENDS HARBOR INTERNATIONAL FUND WHICH CURRENTLY HOLDS TWOTHIRDS OF ITS ASSETS IN EUROPEAN STOCKS AND WARBURG PINCUS INTERNATIONAL EQUITY FUND WHICH IS ABOUT 50 IN EUROPEAN STOCKS 9306180083 930618 MUTUAL FUNDS MAGELLAN'S VINIK HAS CAUSE TO CELEBRATE BY ROBERT MCGOUGH STAFF REPORTER OF THE WALL STREET JOURNAL JEFFREY VINIK APPROACHES HIS JULY 1 ANNIVERSARY AT THE HELM OF FIDELITY INVESTMENTS' ENORMOUS MAGELLAN FUND WITH AN UNEXPECTED ACHIEVEMENT HE WALLOPED THE STOCK MARKET DURING HIS TENURE MR VINIK HAS STEERED MAGELLAN TO A SURPRISINGLY STRONG 204 GAIN OR ABOUT 88 PERCENTAGE POINTS HIGHER THAN THE TOTAL RETURN OF THE STANDARD & POOR'S 500 INDEX INCLUDING PRICE CHANGE AND REINVESTED DIVIDENDS MAGELLAN ALREADY HAD A MONSTROUS 20 BILLION IN ASSETS A YEAR AGO WHEN MR VINIK REPLACED MORRIS SMITH AS FUND MANAGER AT THE TIME MANY CRITICS SAID THE FUND HAD GROWN TOO LARGE AND UNWIELDY TO BEAT THE STOCK MARKET BUSINESS WEEK MAGAZINE WARNED THAT MR VINIK'S SLOW START RAISED FUNDAMENTAL QUESTIONS ABOUT MAGELLAN'S FUTURE TODAY THE NATION'S LARGEST MUTUAL FUND HAS 265 BILLION IN ASSETS I DON'T THINK IT'S TOO BIG SAYS MR VINIK HOW DID SUCH A HUGE FUND MANAGE TO TROUNCE THE MARKET THE 34YEAROLD MR VINIK PLACED BOLD BETS ON CERTAIN INDUSTRIES AND COMPLETELY SOLD OUT OF OTHER SECTORS GIVING MAGELLAN A VERY DIFFERENT PERFORMANCE THAN THE S&P 500 MY BETS HAVE PAID OFF MR VINIK SAYS HE BECAME CONVINCED LAST YEAR THAT THE CONSUMERCOMPANY STOCKS THAT HAD PROSPERED DURING THE 1980S WOULD RUN INTO TROUBLE THE '80S ECONOMY WAS LED BY THE CONSUMER MR VINIK SAYS THIS ECONOMY IS BEING LED BY CAPITAL SPENDING PARTICULARLY TECHNOLOGY CAPITAL SPENDING IT'S A PRODUCTIVITYDRIVEN RECOVERY SO MR VINIK SOLD OUT OF MAGELLAN'S BIG POSITIONS IN CONSUMER STOCKS MOST SIGNIFICANTLY IN THE THIRD QUARTER OF 1992 HE SOLD 10 MILLION SHARES OF PHILIP MORRIS COS WHICH PLUNGED IN APRIL OF THIS YEAR HE STOCKED UP ON TECHNOLOGY COMPANIES INCLUDING SUCH SEMICONDUCTOR MAKERS AS MOTOROLA AND TEXAS INSTRUMENTS WHILE MOST HAVE DONE WELL MR VINIK HAS TAKEN A HIT ON ADVANCED MICRO DEVICES WHICH LOST A COURTROOM BATTLE WITH COMPETITOR INTEL MR VINIK SAYS HE'S STICKING WITH ADVANCED MICRO BECAUSE IT'S THE CHEAPEST STOCK IN MY FUND RIGHT NOW HIS BIGGEST BET WAS ON ENERGY STOCKS SUCH AS UNOCAL BURLINGTON RESOURCES AND BAKER HUGHES WHICH RECENTLY MADE UP 159 OF THE FUND THOUGH ENERGY STOCKS WERE WEAK IN THE 1980S HE EXPECTED NATURALGAS PRICES TO RISE HE ALSO BOUGHT STEEL STOCKS EVEN JAPANESE STOCKS THESE GROUPS ROSE STRONGLY THIS YEAR DON PHILLIPS PUBLISHER OF THE CHICAGO NEWSLETTER MORNINGSTAR MUTUAL FUNDS CALLS SUCH BIG CHANGES IN THE FUND COURAGEOUS BECAUSE IF THEY HAD BACKFIRED MR VINIK WOULD HAVE BEEN KNOWN AS THE MAN WHO RUINED MAGELLAN MR VINIK HAS TAKEN SOME PROFITS ON FINANCIAL STOCKS SUCH AS CITICORP AND FEDERAL NATIONAL MORTGAGE ASSOCIATION I STILL OWN MAJOR POSITIONS HE SAYS BUT GIVEN THE RUNUP THE STOCKS HAVE HAD THEY ARE NO LONGER AS COMPELLING AS THEY WERE AND HE HAS BOUGHT SOME BIG TURNAROUND CANDIDATES SUCH AS SEARS ROEBUCK EASTMAN KODAK AND AMERICAN EXPRESS THESE COMPANIES POORLY MANAGED IN THE PAST HE SAYS ARE BECOMING SHAREHOLDERCONSCIOUS ONE POTENTIAL TURNAROUND THAT HE HASN'T YET BOUGHT IS INTERNATIONAL BUSINESS MACHINES THERE MAY OR MAY NOT BE VALUE THERE TO BE REALIZED HE SAYS HALF OF THE 750 STOCKS IN MAGELLAN HAVE A STOCK MARKET CAPITALIZATION STOCK PRICE TIMES SHARES OUTSTANDING OF LESS THAN 1 BILLION THERE IS MORE VALUE IN MID AND SMALLSIZED COMPANIES THAN IN BIG COMPANIES WITHOUT A DOUBT MR VINIK SAYS BUT BECAUSE OF MAGELLAN'S SIZE HE HAS TO FOCUS ON THE 100 BIGGEST HOLDINGS IN THE FUND WHICH TEND TO BE BIG COMPANIES WHILE HE MAKES BUY AND SELL DECISIONS FOR ALL STOCKS HE LEAVES MOST OF THE RESEARCH ON THE SMALLER STOCKS TO TWO ASSISTANTS AND TO FIDELITY'S ANALYSTS CRITICS SAID MAGELLAN WAS TOO BIG AT 14 BILLION IN 1990 WHEN MR SMITH MR VINIK'S PREDECESSOR BEGAN RUNNING THE FUND MR SMITH BEAT THE MARKET IN HIS TWOYEAR TENURE THEY EVEN SAID SO WHILE PETER LYNCH THE LEGENDARY STOCKPICKER WHO RACKED UP MAGELLAN'S BIGGEST RETURNS WAS STILL RUNNING THE FUND IN 1985 WHEN MAGELLAN HAD 3 BILLION IN ASSETS ONE CRITIC SPECULATED THAT SMALLER FUNDS WOULD BEAT MAGELLAN'S RETURNS THE CRITIC MR LYNCH HIMSELF IN AN INTERVIEW WITH FORBES MAGAZINE IN A WAY MR LYNCH WAS RIGHT BACK IN 1985 MAGELLAN HASN'T TURNED IN THE EXTRAVAGANT RETURNS THAT IT DID AS A SMALLER FUND IN THE LATE 1970S AND EARLY 1980S WHEN MR LYNCH BEAT THE S&P 500 INDEX BY 20 AND 30 PERCENTAGE POINTS FOR SIX YEARS RUNNING BUT DURING THE PAST 10 YEARS MAGELLAN'S PERFORMANCE HAS CONTINUED TO RANK IN THE TOP 1 OF ALL MUTUAL FUNDS ONE OF THE PEOPLE WHO GOT THE RICHEST FROM INVESTING IN MAGELLAN WAS EDWARD C JOHNSON III CHAIRMAN OF FIDELITY INVESTMENTS IN 1976 THE YEAR BEFORE MR LYNCH BEGAN RUNNING THE FUND MR JOHNSON AND HIS FATHER OWNED ABOUT 12 OF MAGELLAN ACCORDING TO OLD PROXY STATEMENTS AND 50 MILLION IN TAXLOSS CARRYFORWARDS SHELTERED THE JOHNSONS AND OTHER MAGELLAN SHAREHOLDERS FROM TAXES ON THE PROFITS OF THE FUND IN THE EARLY YEARS OF MR LYNCH'S MANAGEMENT ACCORDING TO MR LYNCH'S BOOK BEATING THE STREET BECAUSE THE FUND WAS CLOSED TO NEW INVESTORS UNTIL 1981 A LARGE PART OF THOSE TAX BENEFITS DIDN'T GET DILUTED BY NEW INVESTORS AS MAGELLAN GREW IN SIZE THE STRESS AND LONG HOURS OF MANAGING IT FINALLY OVERWHELMED MR LYNCH AND HIS SUCCESSOR MR SMITH WHO BOTH RESIGNED TO REACQUAINT THEMSELVES WITH THEIR FAMILIES MR SMITH PLANS TO REMAIN IN ISRAEL WHERE HE ORIGINALLY WENT FOR A ONEYEAR SABBATICAL WHILE MR LYNCH REJOINED FIDELITY AS VICE CHAIRMAN OF ITS INVESTMENT ARM MR VINIK IN CONTRAST LEAVES THE OFFICE AT 530 PM MOST DAYS AND GETS IN AN OCCASIONAL GOLF GAME HIS HANDICAP AN UNINSPIRING 16 HE JOKES THAT HE SPENDS ENOUGH TIME WITH HIS TWO YOUNG CHILDREN ON WEEKENDS THAT HE LOOKS FORWARD TO WORK ON MONDAY HE DENIES RUMORS THAT HE GOT A LONGTERM CONTRACT TO MANAGE MAGELLAN IN RECENT MONTHS MR VINIK HAS PUT SOME OF MAGELLAN'S CASH AND BOND HOLDINGS TO WORK BUYING STOCKS AT THE END OF APRIL THE FUND HAD 127 OF ITS ASSETS IN BONDS AND 83 IN CASH BUT MR VINIK SAYS THAT THE CASH AND BOND LEVELS HAVE COME DOWN SINCE THEN BUT WHILE HE'S STILL FINDING GOOD BUYS HE EXPECTS THE 1990S WILL BE A CHOPPY DECADE IF THE S&P 500 INDEX GOES UP 3 TO 5 A YEAR THAT'S GOOD HE ADDS GOOD STOCK PICKING WILL DO BETTER THAN THAT BECAUSE THE INDEX REMAINS WEIGHED DOWN WITH CONSUMERGOODS COMPANIES I'M LOOKING FORWARD TO THE NEXT FIVE YEARS MR VINIK SAYS BUT HE TAKES PAINS TO WARN INVESTORS NOT TO EXPECT MAGELLAN TO CONTINUE TO BEAT THE MARKET BY THE FAT MARGIN IT HAS SO FAR IN 1993 GIVEN THE COMPETITIVENESS OF OUR BUSINESS MR VINIK SAYS AND FRANKLY THE SIZE OF THE FUND THAT PERFORMANCE IS NOT SUSTAINABLE 9306180082 930618 AMR FORECASTS BLEAK EARNINGS FOR 2ND PERIOD PARENT OF AMERICAN AIRLINES KILLS RECOVERY HOPES INDUSTRY STOCKS TUMBLE BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL AMR CORP SAID SECONDQUARTER EARNINGS WILL BE SIGNIFICANTLY WORSE THAN EXPECTATIONS DASHING HOPES FOR AN AIRLINEINDUSTRY RECOVERY AND SENDING AIRLINE STOCKS TUMBLING ANALYSTS HAD EXPECTED THE PARENT OF AMERICAN AIRLINES TO REPORT NET INCOME OF ABOUT 75 MILLION OR 1 A SHARE BUT THE NATION'S LARGEST AIRLINE WHICH HAD PREVIOUSLY PREDICTED THAT POSITIVE TRENDS FROM THE FIRST QUARTER WOULD CONTINUE IN THE SECOND PERIOD SAID TRAFFIC IN MAY AND JUNE WAS WEAKER THAN INTERNAL FORECASTS EARLIER THIS WEEK USAIR GROUP INC ISSUED AN EVEN GLOOMIER FORECAST FOR THE SECOND QUARTER AND THE YEAR THE NEWS SENT AMR'S SHARES PLUNGING 425 OR 65 TO 6150 IN HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE KNOCKING 321 MILLION OFF ITS MARKET VALUE UAL CORP FELL 550 OR 43 TO 12150 DELTA AIR LINES SLID 1375 OR 28 TO 4850 USAIR SANK 125 OR 73 TO 15875 AND SOUTHWEST AIRLINES DECLINED 50 CENTS OR 12 TO 40875 IN FORT WORTH TEXAS AN AMR SPOKESWOMAN SAID THAT IT'S TOO EARLY TO PREDICT WHETHER TRAFFIC DURING THE REST OF THE YEAR WILL REMAIN WEAK BUT THAT IT'S LIKELY THIS TREND COULD CONTINUE INTO JULY SHE NOTED THAT TRAFFIC HAS IMPROVED YEARTOYEAR SO FAR BUT ADDED THAT THE RECOVERY IS A LITTLE SLOWER THAN WE HAD ANTICIPATED SHE SAID THE AIRLINE HAD EXPECTED JULY AND AUGUST TRAFFIC TO BE OFF 4 FROM LAST YEAR WHEN STEEP FARE CUTS INFLATED RESULTS BUT NOW EXPECTS A 5 DROP THE AIRLINE INDUSTRY WHICH IS COMING OFF NEARLY THREE YEARS OF RECORD LOSSES REMAINS THE VICTIM OF THE OVERALL US ECONOMY WHICH HAS GROWN ONLY SLOWLY IN RECENT MONTHS WARY COSTCONSCIOUS TRAVELERS PARTICULARLY VACATIONERS HAVE BEEN RELUCTANT TO BUY DOMESTIC TICKETS PRICED HIGHER THAN IN RECENT YEARS INTERNATIONAL TRAVEL IS ALSO SUFFERING BECAUSE OF CONTINUED ECONOMIC SLUGGISHNESS OVERSEAS ESPECIALLY IN EUROPE BUT THE WEAK RESULTS RAISE THE POSSIBILITY THAT CARRIERS MIGHT RESORT TO FARE CUTS TO NUDGE CONSUMERS BACK ONTO PLANES THE INDUSTRY HAS BEEN RESISTING DEEP WIDESPREAD FARE CUTS IN HOPES OF INCREASING REVENUES WE STILL SEE PEOPLE SITTING ON THE SIDELINES SAID STEVE GLENN PRESIDENT OF EXECUTIVE TRAVEL INC IN LINCOLN NEB HE ANTICIPATES A 30 TO 40 ACROSSTHEBOARD SALE WITHIN THE NEXT TWO WEEKS WE FEEL THE EARTH TREMBLING USAIR HAS ALREADY TAKEN STEPS TO STIMULATE TRAFFIC RECENTLY THE ARLINGTON VA AIRLINE REDUCED LEISURE FARES IN SOME SHORTHAUL MARKETS AND FURTHER MEASURES ARE IN THE WORKS USAIR EARLIER THIS WEEK SAID THAT BASED ON RESULTS OF OPERATIONS FOR APRIL AND MAY AND A PROJECTION FOR JUNE IT EXPECTS A LOSS FOR THE SECOND QUARTER AND THE YEAR THE AIRLINE ADDED THAT THE RESULTS WOULD BE CONSIDERABLY BETTER THAN IN 1992 BUT IT HAD PREVIOUSLY PREDICTED A SECONDQUARTER PROFIT IN THE SECOND QUARTER OF 1992 USAIR POSTED A LOSS OF 848 MILLION OR 208 A SHARE FOR ALL OF 1992 THE COMPANY HAD A LOSS OF 12 BILLION OR 2723 A SHARE TRANS WORLD AIRLINES WHICH IS EXPECTED TO EMERGE FROM CHAPTER 11 BANKRUPTCY PROTECTION SOON SAID IT IS CONCERNED ABOUT BOOKINGS THIS SPRING AND SUMMER WE TOO ARE SEEING A GENERAL SOFTNESS IN THE BOOKINGS AND WE SHARE AMERICAN'S CONCERN SAID A SPOKESMAN FOR TWA BASED IN MOUNT KISCO NY HE PREDICTED THAT BOOKINGS MIGHT PICK UP ONCE LEISURE TRAVELERS REALIZE THAT STEEP DISCOUNTING LIKE LAST YEAR'S ISN'T GOING TO HAPPEN AGAIN AMERICAN SAID IT DOESN'T PLAN ANY STEEP TICKET REDUCTIONS PEOPLE WHO ARE WAITING FOR ANOTHER 50OFF SALE WILL HAVE A LONG WAIT THE COMPANY SPOKESWOMAN SAID REFERRING TO LAST YEAR'S FARE WARS WHICH PROVED DISASTROUS FOR THE INDUSTRY IN ATLANTA A SPOKESMAN FOR DELTA SAID THAT ALTHOUGH A VARIETY OF DISCOUNTING IS A WAY OF LIFE FOR AIRLINES WE FEEL THERE WOULD NOT BE A NEED FOR DRASTIC DISCOUNTING AMERICAN WHICH LAST HAD A PROFITABLE QUARTER IN 1991'S THIRD PERIOD SAID ITS TRAFFIC ROSE IN MAY AND JUNE BUT NOT AS MUCH AS IT EXPECTED IN MAY TRAFFIC ROSE 12 FROM A YEAR EARLIER BUT THE SPOKESWOMAN SAID THE COMPANY WAS EXPECTING AN INCREASE OF MORE THAN 13 MANY INVESTORS SHE SAID WERE EXPECTING AN EVEN BIGGER RISE IN THE 1992 SECOND QUARTER AMR HAD A NET LOSS OF 166 MILLION OR 221 A SHARE ON REVENUE OF 359 BILLION AMERICAN SAID ITS INTERNATIONAL BUSINESS PARTICULARLY TRANSATLANTIC ROUTES CONTINUES TO BE WEAK THE AIRLINE SAID IT IS PUTTING PASSENGERS IN THE SEATS BUT ISN'T MAKING MUCH MONEY BECAUSE OF DISCOUNTED TICKETS DELTA EARLIER THIS MONTH SAID THAT ITS OVERALL TRAFFIC WAS ALSO UP BUT THAT DISCOUNTED FARES HAVE FORCED THE AIRLINE TO REIN IN ITS EXPECTATIONS FOR THE SECOND QUARTER CONTINENTAL AIRLINES IN HOUSTON SAID IT WOULDN'T COMMENT ON JUNE TRAFFIC OR SECONDQUARTER EARNINGS THIS WEEK STANDARD & POOR'S CORP ISSUED A REPORT SAYING THAT MOST AIRLINES WOULD POST AN OPERATING PROFIT THIS YEAR AFTER 1992'S HUGE LOSSES S&P STOPPED SHORT OF UPGRADING ANY AIRLINE DEBT BUT SAID IT EXPECTED A GRADUAL UPTURN IN EARNINGS AND CASH FLOW THE EXCEPTION TO THE INDUSTRY WEAKNESS IS SOUTHWEST THE ONLY BIG AIRLINE TO REMAIN PROFITABLE IN RECENT YEARS GARY KELLY CHIEF FINANCIAL OFFICER SAID OUR SECONDQUARTER EARNINGS WILL BE UP SUBSTANTIALLY OVER THE SECOND QUARTER OF 1992 APRIL AND MAY TRAFFIC EACH WERE UP MORE THAN 20 AND MR KELLY SAID THE STRONG TRAFFIC TREND HAS CONTINUED RIGHT INTO JUNE JAMES S HIRSCH AND BRETT PULLEY CONTRIBUTED TO THIS ARTICLE 9306180081 930618 ENTERTAINMENT MUSIC STORES GROW LARGER AND LIVELIER ADDING PREVIEWING POSTS APPAREL PIZZA BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LISA DERAGON A PERSONAL TRAINER IN NEW YORK LOVES MUSIC BUT SHE HATES MUSIC STORES SHE FINDS THE CACOPHONY OF MOST CHAINOWNED RECORD STORES IRRITATING AND THEIR MUSIC INVENTORY SPOTTY THEY ALWAYS SEEM TO BE OUT OF STOCK AND THERE'S NEVER ANY HELP ON THE FLOOR SAYS THE 27YEAROLD FAN OF THE GRATEFUL DEAD 10000 MANIACS AND OTHER GROUPS RECENTLY AT A NEW YORK STORE OWNED BY THE HMV CHAIN SHE GOT SO FRUSTRATED WAITING IN LINE TO PAY THAT SHE DUMPED HER GOODS AND HAS NEVER GONE BACK A GROWING NUMBER OF MUSIC LOVERS APPEAR TO SHARE MS DERAGON'S FRUSTRATIONS ONE STUDY BY NORMAN HECHT RESEARCH SHOWS THAT AS MANY AS 51 OF THE PEOPLE WHO ENTER MUSIC STORES LEAVE WITHOUT BUYING 48 OF THEM BECAUSE THEY COULDN'T LOCATE THE MUSIC THEY WANTED BUT MS DERAGON AND OTHER DISAFFECTED SHOPPERS CAN TAKE HEART THEIR COMPLAINTS AREN'T LOST ON THE INDUSTRY A LOT OF PEOPLE HAVE HAD BAD EXPERIENCES IN MUSIC STORES YOU AREN'T TREATED LIKE HUMAN BEINGS SAYS IAN DUFFELL PRESIDENT OF VIRGIN RETAIL GROUP USA + ASIAPACIFIC A UNIT OF LONDON'S VIRGIN RETAIL GROUP LTD TO BETTER SERVE THEIR CUSTOMERS SOME MUSIC RETAILERS ARE TURNING TO HIGHTECH LISTENING POSTS EVOLVED FROM THE 1950S' LISTENING BOOTH AND COMPACTDISKBASED MULTIMEDIA MUSICPREVIEWING SYSTEMS THE AIM IS BOTH TO ENTERTAIN SHOPPERS AND TO GET THEM TO BUY NOT ONLY THE MUSIC THEY CAME FOR BUT ALSO THE TUNES THEY MIGHT BE EXPOSED TO IN THE STORE MINNEAPOLISBASED MUSICLAND STORES CORP FOR EXAMPLE THE LARGEST US CHAIN WITH 870 STORES IS WORKING ON A HANDHELD MUSICPREVIEWING SYSTEM THAT IT WILL TEST IN SOME STORES THIS YEAR THE SYSTEM USES A COMPUTERIZED LISTENING DEVICE RESEMBLING A CELLULAR PHONE BY RUNNING THE DEVICE'S SENSOR OVER AN ALBUM'S BAR CODE A SHOPPER COULD LISTEN TO THREE SONGS BY HOLDING THE DEVICE TO THE EAR MUSICLAND SAYS THE MUSIC WOULD BE FED TO THE DEVICE FROM A CENTRAL COMPUTER CARRYING AS MANY AS 20000 DIFFERENT ALBUMS MUSICLAND AND OTHER MUSIC RETAILERS ARE ALSO OPENING NEW MEGASTORES THAT CARRY CLOSE TO 100000 MUSIC TITLES COMPARED WITH 30000 TO 50000 IN STANDALONE STORES ALONG WITH VIDEOS BOOKS AND EVEN VIDEOGAME SOFTWARE ARNIE BERNSTEIN PRESIDENT OF MUSICLAND'S MUSICSTORE DIVISION SAYS A 40000SQUAREFOOT STORE OPENED LAST FALL UNDER THE NAME MEDIA PLAY IN ROCKFORD ILL WILL SERVE AS A PROTOTYPE FOR 10 MORE STORES TO OPEN THIS YEAR THE NEW STORES MR BERNSTEIN SAYS WILL HAVE LOTS OF INTERACTION AND ATTRACTIONS INCLUDING CAFES POPCORN MACHINES AND FOR THOSE WHO MIGHT WANT TO SIT AND READ COUCHES OTHER MUSIC RETAILERS ARE EXPERIMENTING WITH UNCONVENTIONAL ALLIANCES SUCH AS CREATING COMBINATION STORES WITH YOUTHORIENTED MERCHANTS LIKE APPAREL STORES OR PIZZA RESTAURANTS VIRGIN AS A NOTABLE EXAMPLE HAS JOINED WITH BLOCKBUSTER ENTERTAINMENT CORP TO CREATE A CHAIN OF STORES CALLED BLOCKBUSTER VIRGIN MEGASTORES 75OWNED BY BLOCKBUSTER AND 25OWNED BY VIRGIN THE BLOCKBUSTER VIRGIN STORES WILL BE PATTERNED AFTER THE CHAIN'S FIRST US STORE ORIGINALLY PLANNED BY VIRGIN AND OPENED IN LOS ANGELES THE OUTLET IS ITSELF PATTERNED AFTER A VIRGIN STORE IN PARIS THE 30000SQUAREFOOT LOS ANGELES STORE SELLS MUSIC COMPUTER SOFTWARE VIDEOS AND VIDEO GAMES ALONG WITH JACKETS AND CAPS LIKE THE PARIS STORE THE LOS ANGELES OUTLET OFFERS LISTENING BOOTHS A BOOKSTORE AN AMPHITHEATER FOR LIVE PERFORMANCES AND AN INSTORE RADIO STATION IT'S LIKE EVERYBODY WOKE UP AT THE SAME TIME AND REALIZED HOW IMPORTANT THE STORE IS SAYS LARRY STESSEL GENERAL MANAGER OF POLYGRAM'S MERCURY RECORDS MTV AND ADVERTISING ARE FINE BUT WHEN YOU WANT TO MOVE SOMETHING YOU'VE GOT TO REACH BUYERS IN THE STORE MUSIC RETAILERS HAVE COMPELLING REASONS TO REVISE THEIR SELLING STRATEGIES WHILE TOTAL RECORDEDMUSIC SALES GREW 15 TO 9 BILLION LAST YEAR MUSIC STORES' SHARE OF MUSIC PURCHASES HAS BEEN DROPPING SINCE 1990 MEANWHILE SALES AT DEPARTMENT AND DISCOUNT STORES AND THROUGH MAIL ORDER AND RECORD CLUBS HAVE RISEN STEADILY ACCORDING TO THE RECORDING INDUSTRY ASSOCIATION OF AMERICA AND MUSIC RETAILING'S PRIME PATRONS THE 24YEAROLDANDUNDER CROWD DECREASED 12 SINCE 1988 AMONG THE COMPUTERIZED LISTENING AND PREVIEWING DEVICES NOW BEING ADOPTED BY MUSIC RETAILERS TO LURE MORE SHOPPERS INTO THEIR STORES THE MOST TECHNOLOGICALLY ADVANCED IS THE ISTATION CREATED BY SAN FRANCISCOBASED INTOUCH GROUP INC VAGUELY RESEMBLING AN AUTOMATICTELLER MACHINE ISTATIONS HAVE BEEN TESTED IN VARIOUS CITIES THE COMPANY HOPES TO HAVE AS MANY AS 400 MACHINES IN STORES BY THE END OF THIS YEAR AN ISTATION CAN HOLD 75000 CDQUALITY ALBUMS AND IS ACTIVATED WITH A CARD OR BY THE BAR CODE ON A CD OR CASSETTE SHOPPERS USE HEADPHONES TO LISTEN TO UP TO FIVE 30SECOND CUTS PER ALBUM AND CAN VIEW FULLCOLOR MUSIC VIDEOS THE MACHINE CAN CALL UP THE LATEST RELEASE OR SCAN THROUGH A GROUP'S ENTIRE REPERTOIRE INTOUCH WAS FOUNDED BY JOSHUA D KAPLAN WHO SAYS STORES THAT TESTED THE ISTATION AVERAGED 5 SALES INCREASES OVER CONTROLGROUP STORES WITHOUT THE MACHINE INTOUCH WILL CHARGE RECORD LABELS 30 CENTS PER ALBUM PREVIEWED AND A 3 CHARGE PER MACHINE PER MONTH TO DISPLAY MUSIC VIDEOS THERE COULD BE SOME LEGAL TUSSLES AHEAD SINCE MR KAPLAN SAYS HE HOLDS A PATENT THAT COVERS INTERACTIVE PREVIEWING SYSTEMS IN STORES WE ENDORSE ANY SYSTEM THAT PROVIDES A LEVEL OF CUSTOMER SERVICE HOWEVER IF WE FIND THAT SYSTEM INFRINGES ON OUR PATENT WE WILL VIGOROUSLY ENFORCE OURS MR KAPLAN SAYS TOWER RECORDS THE WEST SACRAMENTO CALIF CHAIN OWNED BY MTS INC TESTED MR KAPLAN'S ISTATIONS LAST SPRING BUT THIS WEEK INTRODUCED A LESSAMBITIOUS TOWER CD LISTENING STATION AT ITS STORES NATIONWIDE DEVELOPED BY LOS ANGELESBASED HIGH LEVEL INC ONE STATION HOLDS ONLY 12 ALBUMS PER MACHINE THE TOWER STATION USES A MULTIDISK CD PLAYER EQUIPPED WITH A CUSTOMDESIGNED REMOTECONTROL PANEL AND ALLOWS SHOPPERS TO LISTEN TO ANY TRACK FOR AS LONG AS THEY WANT THEN THERE IS THE MUZE SYSTEM WHICH TOWER AND OTHER CHAINS ARE USING AS AN ELECTRONIC RECORD CATALOG TO REPLACE THE DOGEARED PAPER CATALOGS IN MOST STORES DEVELOPED BY MUZE INC OF BROOKLYN NY WHOSE MAJORITY INVESTORS INCLUDE JOHN KLUGE HEAD OF METROMEDIA CO MUZE IS A WALKUP COMPUTER SCREEN AND KEYBOARD THAT CAN TRACK DOWN AN ARTIST OR SONG THROUGH A DATABASE STORED ON A CD/ROM AND COMPUTER HARD DRIVE MUZE DOESN'T PLAY MUSIC BUT CARRIES DETAILED INFORMATION ON 100000 ALBUM TITLES INCLUDING CRITIC'S REVIEWS BUT MANY OF THESE NEW SYSTEMS AND DEVICES WON'T BE AROUND FOR LONG IF THEY DON'T GET AND MAINTAIN WIDESPREAD SUPPORT FROM ALL THE MAJOR MUSIC LABELS AND SOME RETAILERS WORRY THAT THE SYSTEMS COULD CREATE A CLUTTERED MECHANICAL ENVIRONMENT WE DON'T WANT TO TURN THE STORE INTO A ROBOTIC STORE OR A VIDEO ARCADE SAYS VIRGIN'S MR DUFFELL AND WITH ALL THEIR PLANNED NEW GADGETS AND OFFERINGS MUSIC STORES WON'T SUCCEED IN REVERSING THEIR DECLINING FORTUNES UNLESS THEY DEAL WITH WHAT SEEMS TO BE CONSUMERS' BIGGEST COMPLAINT A LACK OF KNOWLEDGEABLE AND COURTEOUS SALES HELP YOUNG AND OFTEN SURLY NEVERAROUNDWHENYOUNEEDTHEM SALESPEOPLE ARE A STAPLE OF THE INDUSTRY IT'S ALMOST PART OF INDUSTRY CULTURE THAT IF YOU TREAT CUSTOMERS LIKE INTRUDERS YOU ARE PRETTY HIP SAYS MR DUFFELL HE CONCLUDES WE HAVE TO GET PEOPLE BACK INTO BUYING MUSIC YOU HAVE TO MAKE IT A NICE EXPERIENCE THE REASON WE ARE IN AMERICA IS BECAUSE WE SEE AN OPPORTUNITY WE SEE THE SERVICE LEVEL IN AMERICA IS NOT AS HIGH AS IT SHOULD BE 9306180080 930618 FBI REQUESTS FILES RELATED TO BOND ISSUE MANAGED BY LAZARD A WALL STREET JOURNAL NEWS ROUNDUP THE FEDERAL BUREAU OF INVESTIGATION HAS REQUESTED RECORDS RELATING TO A 250 MILLION KENTUCKY TURNPIKE AUTHORITY BOND ISSUE MANAGED BY LAZARD FRERES & CO LAST OCTOBER INDIVIDUALS FAMILIAR WITH THE INQUIRY SAY THE FBI MADE THE REQUEST LAST WEEK TO PAT MULLOY SECRETARY OF THE KENTUCKY FINANCE AND ADMINISTRATION CABINET AMONG THE RECORDS THE FBI IS SEEKING IS A 10PAGE MEMO WRITTEN BY SIX SENIOR KENTUCKY STATE FINANCE CABINET STAFFERS ABOUT THE ROLE OF LAZARD AND ONE OF ITS PARTNERS RICHARD P POIRIER JR IN THAT DEAL THE MEMO ACCUSED MR POIRIER OF LYING MAKING UNAUTHORIZED TRADES ON THE STATE'S BEHALF AND OVERCHARGING THE GOVERNMENT BY MORE THAN 1 MILLION DETAILS OF THE KENTUCKY MEMO WERE FIRST REPORTED IN A STORY ABOUT MR POIRIER THAT APPEARED IN THIS NEWSPAPER LAST MONTH NEWS OF THE FBI REQUEST WAS REPORTED IN WEDNESDAY'S EDITION OF THE BOND BUYER INDIVIDUALS WITH KNOWLEDGE OF THE FBI REQUEST SAID YESTERDAY THAT THE AGENCY WAS ACTING AT THE BEHEST OF THE US ATTORNEY'S OFFICE IN LEXINGTON KY JOSEPH SMITH A SPECIAL AGENT AT THE FBI'S KENTUCKY OFFICE WOULD NEITHER CONFIRM NOR DENY THAT THE BUREAU HAS MADE ANY REQUEST US ATTORNEY KAREN CALDWELL DECLINED TO COMMENT ON THE MATTER A LAZARD SPOKESMAN SAID WE HAVE NOT BEEN CONTACTED ABOUT ANY INVESTIGATION AND WE ARE UNAWARE OF ANY INVESTIGATION AT THIS TIME DANIEL BELLER THE LAWYER FOR MR POIRIER DECLINED TO COMMENT PAT MULLOY SECRETARY OF THE KENTUCKY FINANCE CABINET WAS TRAVELING AND COULDN'T BE REACHED FOR COMMENT 9306180079 930618 HEARD ON THE STREET LTV'S NEW COMMON TO BEGIN TRADING SOON CARRIES MORE THAN JUST POSTCHAPTER 11 RISKS BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL INVESTORS WITH NERVES OF STEEL MIGHT WANT TO TAKE A LOOK AT LTV'S NEW COMMON SHARES THE NEW STOCK WILL BEGIN TRADING ON THE BIG BOARD SOMETIME THIS MONTH AS THE CLEVELANDBASED COMPANY EMERGES FROM CHAPTER 11 BANKRUPTCY PROCEEDINGS ALREADY THE SHARES HAVE ATTRACTED SOME INTEREST IN THE SMALL AND ERRATIC WHENISSUED MARKET CLAIMS REPRESENTING THE NEW SHARES HAVE RISEN TO 15 1/8 IN RECENT WEEKS FROM ABOUT 12 THE NEW STOCK'S FANS POINT OUT THAT BASED ON WHENISSUED PRICES LTV IS SLIGHTLY CHEAPER THAN OTHER INTEGRATED STEELMAKERS YET THE COMPANY IS PRACTICALLY DEBT FREE ITS COSTS ARE RELATIVELY LOW AND IT HAS SOME OF THE NEWEST EQUIPMENT IN THE BUSINESS THOSE VIRTUES MIGHT WIN LTV'S NEW STOCK A HIGHER MULTIPLE THAN THOSE OF RIVALS SOME ANALYSTS SAY THIS MAY END UP BEING A HIGHFLIER SAYS MERRILL LYNCH ANALYST JORDAN ESTRA WHO CALLS LTV A MODERNDAY PHOENIX THOUGH HE HAS NO FORMAL OPINION ON THE STOCK HE FIGURES LTV COULD EARN 4 OR 5 A SHARE IN 1995 OR 1996 BY THIS REASONING ASSUMING THE STEEL INDUSTRY'S STANDARD PRICETOEARNINGS MULTIPLE OF AROUND 6 LTV COULD TRADE AS HIGH AS 30 EVENTUALLY LTV ALSO MAY BENEFIT FROM A WARMING TOWARD ONCESHUNNED STOCKS OF REORGANIZED COMPANIES THE CONCEPT OF A BANKRUPTCY TAINT IS DISAPPEARING FROM THE MARKETPLACE SAYS RAYMOND DAVIS AN INVESTMENT BANKER WITH LEHMAN BROTHERS THE WORLD IS MUCH MORE ACCEPTING AND SOPHISTICATED MR DAVIS WHO ADVISED LTV ON ITS OWN VALUATION OF THE NEW STOCK AT 1542 TO 1911 IN REORGANIZATIONPLAN DOCUMENTS PREDICTS LTV WILL BE THE STRONGEST PERFORMER IN THE STEEL GROUP BUT INVESTORS SHOULD BEWARE OF JUMPING IN TOO QUICKLY THAT'S BECAUSE 99 OUT OF 100 STOCKS COMING OUT OF BANKRUPTCY PROCEEDINGS AT SOME POINT HIT A DOWNDRAFT SAYS JACK HERSCH OF MJ WHITMAN LP IN NEW YORK WHICH TRADES BANK DEBT AND SECURITIES OF DISTRESSED COMPANIES EVEN SO THE GAINS AFTER THE SELLOFF GENERALLY OUTWEIGH THE INITIAL TRAUMA THAT MIGHT MAKE IT WORTHWHILE FOR INVESTORS TO RISK THE TURBULENCEPARTICULARLY IF THE STOCK PRICE SLIDES IN THE WEEKS AHEAD AS FORMER CREDITORS BAIL OUT MAKING THE STOCK CHEAPER MR HERSCH NOTES THAT CHARTER MEDICAL FOR EXAMPLE CAME OUT BETWEEN 8 AND 9 IN JULY 1992 TRADED DOWN TO 4 5/8 IN OCTOBER AND NOW STANDS AT 16 3/8 GREYHOUND LINES BEGAN IN OCTOBER 1991 AT 12 3/4 WAS DOWN TO 6 1/2 IN JULY 1992 AND IS NOW AT 18 3/4 FEDERATED DEPARTMENT STORES OUT IN FEBRUARY 1992 AT 16 SKIDDED TO 11 1/4 BEFORE CLIMBING TO YESTERDAY'S 22 1/4 MR HERSCH WHO DOESN'T OWN ANY LTV SHARES THINKS THE STEELMAKER'S STOCK OUGHT TO FOLLOW A SIMILAR PATTERN A LOT DEPENDS ON WHETHER LTV'S CREDITORS HOLDING MOST OF THE NEW SHARES DECIDE TO CASH OUT QUICKLY ONE BIG HOLDER CLEVELAND CLIFFS SAID IT WILL HOLD 600000 OF ITS 21 MILLION SHARES AS AN INVESTMENT DISTRIBUTING THE REST TO SHAREHOLDERS CYPRUS MINERALS PREVIOUSLY SOLD 45 OF ITS ALMOST 13 STAKE IN THE NEW LTV AND SAID ITS DECISION ON THE REST IS UNDER CONSIDERATION CHRISS STREET WHO ADVISES CREDITORS AND TRADES THE NEW SHARES BELIEVES CREDITORS WILL BAIL OUT WE THINK THE STOCK WILL SEE 11 BEFORE 17 SAYS MR STREET CALLING THE SHARES HIGHLY OVERVALUED BUT ANOTHER LTV TRADER SAYS ANY SELLOFF BY CREDITORS WILL BE PICKED UP BY INSTITUTIONAL INVESTORS AS THE STOCK ATTRACTS MAINSTREAM ATTENTION LTV SHOULD HAVE ABOUT 75 MILLION SHARES OUTSTANDING WITHIN A YEAR LTV HASN'T ANY SHORTAGE OF RISKS FOR INVESTORS THE COMPANY IS EXPECTED TO HAVE A DISMAL SECOND QUARTER BECAUSE OF EQUIPMENT OUTAGES IT HAS FORECAST A LOSS FOR THIS YEAR AND NEXT AND A PROFIT OF JUST 24 MILLION IN 1996 THE COMPANY IS SADDLED WITH PENSION AND HEALTHCARE LIABILITIES IN THE BILLIONS OF DOLLARS AND LIKE OTHER INTEGRATED STEELMAKERS IT FACES A THREAT TO ITS SURVIVAL FROM STEEL MINIMILLS THAT REMELT STEEL SCRAP RATHER THAN START THE STEELMAKING PROCESS FROM IRON ORE PAINEWEBBER ANALYST PETER MARCUS SAYS LTV'S STOCK HAS ONLY AN AVERAGE VALUE ANALYSTS HAVE BEEN BACKING DOWN FROM BULLISH POSITIONS ON STEEL STOCKS BECAUSE OF A SLOWDOWN IN ORDERS AND THE SURGE IN SHARE PRICES DURING THE PAST SEVERAL MONTHS AND LIKE OTHER STEEL STOCKS LTV SHARES COULD TAKE A BEATING IF THE US INDUSTRY DOESN'T PREVAIL IN TRADE RULINGS DUE LATER THIS MONTH AND NEXT BUT WHILE LTV HAS HEFTY EXPENSES IT HAS FLEXIBLE REPAYMENT PLANS THAT STRETCH PENSION LIABILITIES OVER MANY YEARS WITH THE AMOUNTS DEPENDING ON THE COMPANY'S CASH FLOW AND SOME ANALYSTS THINK THE COMPANY'S FORECASTS ARE TOO MODEST I'M ASSUMING A LOT MORE IN THE WAY OF EARNINGS THAN THEY'VE DISCLOSED SAYS CHARLES A BRADFORD OF UBS SECURITIES ALTHOUGH HE THINKS THE SHARES SHOULD GET A BIT CHEAPER BEFORE HE LIKES THEM 9306180078 930618 LETTERS TO THE EDITOR A TRAP FOR DOCTORS STEVEN C SHAMBERG LETTERS MAY 14 IS WRONG HE SAYS NO LAW WILL BE PASSED PREVENTING KNOWLEDGEABLE PATIENTS FROM PAYING EXTRA OUT OF THEIR OWN POCKETS TO HIRE HIM A PHYSICIAN THE LAW ALREADY EXISTS IT IS CURRENTLY A FELONY OFFENSE PUNISHABLE BY A 3000 FINE EXCLUSION FROM THE MEDICARE PROGRAM AND POSSIBLE IMPRISONMENT FOR CHARGING A PATIENT OVER THE AGE OF 65 ONE PENNY MORE THAN THE MANDATED MEDICARE ALLOWABLE FEE REGARDLESS OF THE PATIENT'S ABILITY TO PAY OR DESIRE TO PAY MORE FOR BETTER SERVICE THESE FEES ARE 60 LESS THAN COMMERCIAL FEES AND LESS THAN HALF OF WHAT THEY WERE IN 1988 A HEALTH DELIVERY SYSTEM DESIGNED AND RUN BY HILLARY CLINTON WILL INDEED HAVE THE EFFICIENCY OF THE POST OFFICE AND THE COMPASSION OF THE INTERNAL REVENUE SYSTEM 9306180077 930618 COMMODITIES SOYBEAN FUTURES PRICES JUMP AS SOGGY WEATHER KEEPS FARMERS FROM FINISHING THEIR PLANTING BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SOYBEAN FUTURES PRICES SOARED AS TRADERS CAME TO TERMS WITH LONGDELAYED PLANTINGS THAT ARE LIKELY TO STUNT THIS YEAR'S SOYBEAN CROP THE PERSISTENTLY WET SPRING WEATHER HAS HAMPERED FARMERS' EFFORTS TO PLANT THEIR SOYBEAN CROP OPTIMALLY THE CROP SHOULD HAVE BEEN IN THE GROUND BY EARLY JUNE EVERY DAY THAT FARMERS FAIL TO COMPLETE PLANTINGS NOW IS LIKELY TO REDUCE THEIR PERACRE SOYBEAN YIELDS ANALYSTS SAID AT THE CHICAGO BOARD OF TRADE YESTERDAY SOYBEANS FOR JULY DELIVERY ROSE 15 1/4 CENTS TO 60125 A BUSHEL THE NOVEMBER FUTURES PRICE POSTING A BIGGER MOVE WAS UP 17 3/4 CENTS TO 599 A BUSHEL THE TRIGGERS OF YESTERDAY'S RALLY WERE WEATHER REPORTS THAT SHOWED BANKS OF THUNDERSTORMS MOVING INTO WESTERN PLAINS STATES SUCH AS IOWA THESE ALREADY SATURATED AREAS ARE FORECAST TO BE DELUGED WITH RAIN TODAY AND TOMORROW THERE'S ALREADY WIDESPREAD PONDING AND FLOODING IN IOWA SAID RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO IF YOU FLEW OVER IT IN A HELICOPTER IN SOME AREAS IT LOOKS LIKE ATLANTIS IN IOWA ONE OF THE TWO BIGGEST SOYBEANPRODUCING STATES THE SOYBEAN CROP WAS ONLY 60 PLANTED AS OF MONDAY A YEAR AGO ON THIS DATE PLANTING WAS 100 COMPLETE THE FIVEYEAR AVERAGE FOR THE DATE IS 94 COMPLETE IN ILLINOIS THE OTHER MAJOR SOYBEAN PRODUCER THE CROP WAS 81 PLANTED AS OF MONDAY COMPARED WITH 97 LAST YEAR AND 92 FOR THE FIVEYEAR AVERAGE AND PLANTINGS ALSO ARE BEHIND SCHEDULE IN LESSERPRODUCING STATES SUCH AS MISSOURI SOUTH DAKOTA AND MINNESOTA FOR SOME FARMERS THE UNUSUALLY SOGGY SPRING BRINGS BACK MEMORIES OF THE 1983 CROP YEAR THE SUMMER OF THAT YEAR WAS NOTED FOR A DROUGHT WHICH FOLLOWED A VERY WET SPRING THAT YEAR ANALYSTS SAY THE WET SPRING KEPT FARMERS FROM PLANTING THEIR CROPS AND THEN SEARING HEAT IN JULY AND AUGUST DESTROYED MANY OF THE SOYBEAN PLANTS THE FARMERS HAD MANAGED TO PLANT TYPICALLY THE RESULT OF SUCH WEATHER AT THE CBOT IS A BULL MARKET WHILE ANALYSTS ARE STOPPING SHORT OF PREDICTING SUCH A MARKET IN SOYBEAN FUTURES THIS YEAR THEY SAY RECENT WEATHER DEVELOPMENTS WILL MAKE FOR FIRM PRICES AND AT LEAST A MILD UPWARD TREND POSSIBLY ACCENTUATING THE TREND COULD BE STRONG DEMAND FOR US SOYBEANS SOYBEAN FARMERS IN ARGENTINA HAVE HAD WEATHER PROBLEMS OF THEIR OWN AND PRODUCERS IN BRAZIL WHERE WEATHER HAS BEEN GOOD ARE HOLDING THEIR STOCKS OF SOYBEANS OFF THE MARKET IN THE HOPE OF HIGHER PRICES LATER IN THE SEASON MR LOEWY SAID US FARMERS ARE PICKING UP SOME INTERNATIONAL ORDERS FOR SOYBEANS THAT WOULD NORMALLY HAVE GONE TO THESE SOUTH AMERICAN NATIONS HE SAID IN OTHER COMMODITY MARKETS ENERGY CRUDE OIL PRICES FELL AFTER NEWS OF A MEETING PLANNED FOR NEXT WEEK BETWEEN REPRESENTATIVES OF IRAQ AND THE UNITED NATIONS ABRUPTLY ENDED A RALLY IN PETROLEUM FUTURES BOUTROS BOUTROSGHALI THE UN SECRETARY GENERAL AND TARIQ AZIZ IRAQ'S DEPUTY PRIME MINISTER WILL MEET IN GENEVA TO DISCUSS THE UN ECONOMIC SANCTIONS AGAINST IRAQ AND A POSSIBLE 16 BILLION SALE OF IRAQI OIL IRAQ PREVIOUSLY REJECTED TERMS OF THE UN PROPOSAL FOR THE ONETIME SALE OF OIL FOR HUMANITARIAN PURPOSES EVEN IF IT ACCEPTS THE TERMS NOW SUCH A SALE LIKELY WOULDN'T TAKE PLACE FOR SEVERAL MONTHS STILL THE POSSIBILITY OF EVEN MORE OIL COMING ONTO AN OVERSUPPLIED MARKET CAUSED CRUDE PRICES TO DROP WITH THE JULY CONTRACT FALLING 14 CENTS TO SETTLE AT 1870 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE BUT NATURAL GAS FUTURES CONTINUED TO RALLY GAS FOR JULY DELIVERY ROSE 48 CENTS TO 2241 A MILLION BRITISH THERMAL UNITS PRECIOUS METALS GOLD FUTURES PRICES CONTINUED TO EDGE HIGHER ON NEW YORK'S COMMODITY EXCHANGE THE ACTIVE AUGUST CONTRACT GAINED 70 CENTS TO 37220 AN OUNCE IN LIGHT TRADING AS THE MARKET CONTINUED TO FOCUS ON SUPPLY AND DEMAND FUNDAMENTALS TRADERS SAID A SLIGHT GAIN IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS SUPPORTED GOLD'S FIRMER TONE THEY ADDED SILVER FOR JULY DELIVERY GAINED 07 CENT TO 434 AN OUNCE ON THE COMEX ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JULY DELIVERY SLIPPED 2 AN OUNCE TO 38150 WHILE PALLADIUM FOR SEPTEMBER DELIVERY ROSE 40 CENTS TO 12790 AN OUNCE COFFEE COFFEE FUTURES PRICES FIRMED 27 CENTS TO 6375 CENTS A POUND FOR SEPTEMBER DELIVERY AMID FORECASTS OF A COLD SNAP IN BRAZIL THIS WEEKEND TRADERS SAID BRAZIL IS THE WORLD'S LARGEST COFFEE PRODUCER ALSO LENDING SUPPORT TO PRICES WERE REPORTS THAT BRAZIL COLOMBIA AND OTHER LATIN AMERICAN COFFEE PRODUCERS WILL MEET NEXT WEEK TO FORMALIZE A NEW EXPORTLIMITING AGREEMENT AIMED AT BOOSTING PRICES COFFEE PRICES HAVE BEEN SOFT IN RECENT MONTHS IN THE WAKE OF THE MARCH COLLAPSE OF AN INTERNATIONAL PRODUCERCONSUMER CARTEL AND BECAUSE OF HIGH LEVELS OF COFFEE STOCKS IN LARGE COFFEECONSUMING NATIONS SUCH AS THE US 9306180076 930618 SOTHEBY'S DISCLOSES SIZABLE PAY GAINS FOR TOP OFFICERS BY ALEXANDRA PEERS STAFF REPORTER OF THE WALL STREET JOURNAL LONDON THE ART MARKET'S RECOVERY MAY BE FRAGILE BUT COMPENSATION FOR SOTHEBY'S HOLDINGS INC EXECUTIVES IS RECUPERATING RAPIDLY AT THE AUCTION COMPANY'S ANNUAL MEETING IN LONDON YESTERDAY THE COMPANY'S BOARD OF DIRECTORS APPROVED A POTENTIAL EXPANSION OF ITS STOCKOPTION PLAN BY FOUR MILLION SHARES DISCLOSED SUBSTANTIAL GAINS IN COMPENSATION FOR THE FIRM'S TOP EXECUTIVES IN 1992 AND MAINTAINED ITS QUARTERLY DIVIDEND TO SHAREHOLDERS OF 15 CENTS A SHARE THE COMPANY IS NOW BASED IN NEW YORK BUT STILL HOLDS ITS ANNUAL MEETING IN LONDON ITS FORMER BASE THE CHIEF BENEFICIARY OF THE HEFTY DIVIDEND HAS BEEN SOTHEBY'S OWN CHAIRMAN AND ITS LARGEST SHAREHOLDER A ALFRED TAUBMAN MR TAUBMAN IS A REAL ESTATE DEVELOPER WHO LED THE INVESTOR GROUP THAT BOUGHT SOTHEBY'S IN 1983 FOR ABOUT 130 MILLION IN 1992 A YEAR WHEN THE AUCTION HOUSE REPORTED NET INCOME OF SEVEN CENTS A SHARE DOWN 69 FROM 1991 IN PART DUE TO A RESTRUCTURING CHARGE THE COMPANY PAID OUT 60 CENTS A SHARE TO ITS STOCKHOLDERS MR TAUBMAN'S HOLDINGS OF 132 MILLION CLASS A AND CLASS B SHARES PAID QUARTERLY DIVIDENDS TOTALING 79 MILLION SOTHEBY'S PRESIDENT MICHAEL AINSLIE SAID THE 1992 60 CENT DIVIDEND WAS PAID FROM EARNINGS THROUGH THE SALE OF INVENTORY AND THROUGH A REDUCTION IN OUR LOAN PORTFOLIO BUT SOTHEBY'S WON'T GO ANOTHER YEAR PAYING A DIVIDEND THE COMPANY DOESN'T COVER WITH ITS EARNINGS HE ADDED THE SOTHEBY'S BOARD MEETS IN AUGUST TO VOTE ON THE DIVIDEND MOREOVER WHILE SOTHEBY'S TOP MANAGMENT HAS HAD A PAY FREEZE ON SINCE THE ART MARKET'S COLLAPSE IN 1990 EXECTIVES DID RECEIVE SUBSTANTIAL OPTION GRANTS BONUSES SUPPLEMENTAL PAYMENTS AND HEFTY REIMBURSEMENTS FOR CAR OR MOVING EXPENSES IN 1992 MR AINSLIE RECEIVED AN ANNUAL SALARY OF 430000 AND ADDITIONAL COMPENSATION OF 224325 REPRESENTING OPTIONS EXERCISES AND REIMBURSEMENTS FOR CAR EXPENSES THAT WAS ABOUT TWOTHIRDS OF HIS COMPENSATION IN 1990 AT THE TAIL END OF THE THE ART MARKET'S BOOM BUT STILL A 19 INCREASE ABOVE 1991 COMPENSATION MR AINSLIE SAID HE EXERCISED ALL OF HIS REMAINING OPTIONS LAST YEAR BECAUSE OF THE CLINTON TAX BILL WHICH PROPOSED HEFTIER TAXES ON HIGHINCOME INDIVIDUALS AND A SLIMMER TAX BREAK FOR COMPANIES' EXECUTIVE COMPENSATION PAYMENTS IF ANYONE HAD OPTIONS THEY COULD EXERCISE IT WAS TIME TO EXERCISE THEM LAST YEAR HE SAID ROGER FAXON THE COMPANY'S MANAGING DIRECTOR IN EUROPE RECEIVED COMPENSATION AND BONUS OF 500000 UP FROM 401000 IN 1991 BUT MR FAXON WHO RELOCATED TO LONDON AT THE COMPANY'S REQUEST IN 1992 ALSO RECEIVED A PAYMENT OF 767187 THAT REPRESENTED MOVING EXPENSES AND REIMBURSEMENT FOR LOSSES ASSOCIATED WITH THE SALE OF HIS US RESIDENCE MR FAXON SAID HE WAS FORCED TO SELL HIS MANHATTAN APARTMENT AFTER SUBSTANTIAL RENOVATIONS INTO A WEAK REAL ESTATE MARKET AND THE COMPANY PAYMENT WAS COMPENSATION FOR THAT AT ITS ANNUAL MEETING THE COMPANY ALSO ALTERED ITS VESTING SCHEDULE SO THAT EMPLOYEES COMPENSATED WITH STOCK OPTIONS WILL BE ELIGIBLE TO EXERCISE 20 OF THE GRANT AS EARLY AS THE SECOND YEAR OF EMPLOYMENT PREVIOUSLY OPTIONS WEREN'T EXERCISABLE UNTIL THE FOURTH YEAR OF EMPLOYMENT LAST WEEK ALEX BROWN & SONS INC OF BALTIMORE MD COMANAGER OF SOTHEBY'S SECONDARY STOCK OFFERING LAST JULY DOWNGRADED THE COMPANY TO A RATING OF NEUTRAL FROM A BUY RECOMMENDATION YESTERDAY IN NEW YORK STOCK EXCHANGE TRADING SOTHEBY'S SHARES CLOSED AT 12 DOWN 375 CENTS 9306180075 930618 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 BANK OF NEW YORK CO 300 MILLION OF SUBORDINATED NOTES DUE JUNE 15 2003 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ACCORDING TO MCM CORPORATEWATCH IT WAS REOFFERED AS 6625S AT 99558 TO YIELD 6686 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 0765 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP DELTA AIR LINES INC 183 MILLION TWOPART ISSUE OF EQUIPMENT PASSTHROUGH TRUST CERTIFICATES PRICED THROUGH DEALERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 103 MILLION OF CERTIFICATES DUE JAN 2 2009 WAS PRICED AT PAR TO YIELD 932 DUE TO EARLY INTEREST AND PRINCIPAL PAYMENTS THE ISSUE HAS A WEIGHTED AVERAGE LIFE OF 10 YEARS THE CERTIFICATES WERE PRICED AT A SPREAD OF 34 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE THE SECOND PART CONSISTING OF 80 MILLION OF CERTIFICATES DUE JAN 2 2015 WAS PRICED AT PAR TO YIELD 1006 DUE TO EARLY INTEREST AND PRINCIPAL PAYMENTS THE ISSUE HAS A WEIGHTED AVERAGE LIFE OF 1979 YEARS THE CERTIFICATES WERE PRICED AT A SPREAD OF 325 PERCENTAGE POINTS ABOVE THE TREASURY 30YEAR BOND BOTH TRANCHES ARE RATED BAA3 BY MOODY'S AND DOUBLEBPLUS BY S&P MERRILL LYNCH & CO 250 MILLION OF NOTES DUE JUNE 24 1996 PRICED AS 475S AT 99509 TO YIELD 4928 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 05 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH WESTERN FINANCIAL SAVINGS BANK 125 MILLION OF SUBORDINATED CAPITAL DEBENTURES DUE JULY 1 2003 PRICED AS 85S AT 99169 TO YIELD 8625 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR SEVEN YEARS WAS PRICED AT A SPREAD OF 2695 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BA3 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP WESTERN FINANCIAL SAVINGS IS A UNIT OF WESTCORP DONNKENNY INC INITIAL OFFERING OF 35 MILLION COMMON SHARES AT 1325 APIECE THROUGH UNDERWRITERS LED BY MABON SECURITIES AND WHEAT FIST BUTCHER & SINGER LIBBEY INC INITIAL OFFERING OF 15 MILLION COMMON SHARES OF THIS OWENSILLINOIS INC UNIT AT 13 APIECE THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO UPON COMPLETION OF THE OFFERING OWENSILLINOIS WILL HOLD NO INTEREST IN LIBBEY RHODES INC INITIAL OFFERING OF 4167000 COMMON SHARES AT 12 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS THORNBURG MORTGAGE ASSET CORP INITIAL OFFERING OF 55 MILLION COMMON SHARES AT 15 APIECE THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES BLACKROCK BROAD INVESTMENT GRADE 2009 TERM TRUST INC INITIAL OFFERING OF 26 MILLION COMMON SHARES AT 15 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO EMERGING MARKETS INCOME FUND II INC INITIAL OFFERING OF 17 MILLION COMMON SHARES AT 15 APIECE THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO SACRAMENTO COUNTY CALIF 285 MILLION OF 1993 TAX AND REVENUE ANTICIPATION NOTES THE BULK APPARENTLY WON BY FIVE FIRMS IN COMPETITIVE BIDDING THE NOTES WHICH HAVE A 3 COUPON ARE ALL PRICED TO YIELD 245 ON JULY 29 1994 THEY HAVE BEEN RATED MIG1 BY MOODY'S AND SP1PLUS BY S&P FOLLOWING ARE THE RESULTS FOR 265 MILLION OF THE ISSUE JP MORGAN SECURITIES INC APPARENTLY WON 75 MILLION NOTES 25 MILLION WITH A BID SETTING THE NET INTEREST COST AT 2489 AND 50 MILLION WITH A NET INTEREST COST OF 2526 PAINEWEBBER INC APPARENTLY WON 75 MILLION OF THE NOTES 25 MILLION WITH A NET INTEREST COST OF 2499 AND 50 MILLION WITH A NET INTEREST COST OF 253 FIRST BOSTON CORP APPARENTLY WON 50 MILLION OF THE NOTES WITH A NET INTEREST COST OF 2522 MERRILL LYNCH & CO APPARENTLY WON 40 MILLION OF THE NOTES WITH A NET INTEREST COST OF 253 BEAR STEARNS & CO APPARENTLY WON 25 MILLION OF THE NOTES WITH A NET INTEREST COST OF 24989 UNITED COMPANIES FINANCIAL CORP 1655 MILLION OF HOMEEQUITYLOAN ASSETBACKED CERTIFICATES PRICED IN TWO PARTS THROUGH UNDERWRITERS LED BY PRUDENTIAL SECURITIES INC ACCORDING TO MCM CORPORATEWATCH A 1495 MILLION PORTION OF THE CERTIFICATES WAS PRICED AS 6075 AT 99 30/32 TO YIELD 6023 A 145BASISPOINT SPREAD ABOVE INTERPOLATED TREASURYS THE CERTIFICATES HAVE AN AVERAGE LIFE OF 337 YEARS AND ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P A 1609 MILLION PORTION OF THE CERTIFICATES WAS PRICED AS 62 AT 99 31/32 TO YIELD 6143 A 150BASISPOINT SPREAD ABOVE INTERPOLATED TREASURYS THE CERTIFICATES HAVE AN AVERAGE LIFE OF 356 YEARS AND WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P UNITED COMPANIES FINANCIAL IS A UNIT OF LAWRENCE INSURANCE GROUP INC BANCO ITAMARATI SA BRAZIL 50 MILLION OF 975 SEMIANNUAL EUROBONDS DUE DEC 29 1995 REOFFERED AT 99783 VIA CHASE INVESTMENT BANK LTD YIELD 985 AT REOFFER PRICE SPREAD 560 BASIS POINTS ABOVE INTERPOLATED TREASURY CURVE FEES 125 POINTS FORTE PLC UK 100 MILLION OF 9375 EUROBONDS DUE JULY 8 2003 AT ISSUE PRICE 1012 VIA SAMUEL MONTAGU & CO AND JP MORGAN SECURITIES LTD REOFFERED AT 997 TO YIELD 942 SPREAD 135 BASIS POINTS ABOVE 8 UK GILT DUE 2003 FEES TWO POINTS ONTARIO CANADIAN PROVINCE 2 BILLION OF 6125 GLOBAL BONDS DUE JUNE 28 2000 REOFFERED AT 99736 VIA SALOMON BROTHERS INTERNATIONAL GOLDMAN SACHS INTERNATIONAL AND SCOTIA MCLEOD INC YIELD AT REOFFER PRICE 6172 SEMIANNUAL SPREAD 64 BASIS POINTS ABOVE TREASURY'S 55 BONDS DUE APRIL 2000 FEES 0325 POINT WEST LB FINANCE CURACAO GERMAN PARENT 100 MILLION OF 85 SUBORDINATED EUROBONDS MATURING JUNE 2 2003 AT ISSUE PRICE 10243 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 10078 TO YIELD 839 SPREAD 32 BASIS POINTS ABOVE 8 GILT DUE 2003 BONDS WILL TRADE INTERCHANGEABLY WITH 150 MILLION OF IDENTICAL OUTSTANDING BONDS GUARANTOR WESTDEUTSCHE LANDESBANK GIROZENTRALE YOKOHAMA JAPANESE CITY 190 MILLION OF 625 EUROBONDS DUE JULY 15 2003 AT ISSUE PRICE 101185 VIA BANK OF TOKYO CAPITAL MARKETS REOFFERED AT 9951 TO YIELD 632 SPREAD 29 BASIS POINTS ABOVE 625 TREASURY NOTE DUE 2003 GUARANTOR GOVERNMENT OF JAPAN FEES TWO POINTS 9306180074 930618 CAPITALGAINS TAX ON WEALTHY IS SET TO RISE UNDER BILL WASHINGTON THE SENATE FINANCE COMMITTEE TRYING TO AVOID REINVIGORATING THE TAXSHELTER GAME WANTS TO RAISE THE TAX RATE ON CAPITAL GAINS FOR THE VERY RICHEST AMERICANS THE BILL THAT THE COMMITTEE IS POISED TO APPROVE WOULD RAISE THE TAX RATE ON PROFITS FROM THE SALE OF ASSETS TO 294 THIS YEAR AND 308 IN SUBSEQUENT YEARS BUT ONLY FOR THOSE WITH TAXABLE INCOMES ABOVE 250000 THE MAXIMUM CAPITALGAINS RATE IS NOW 28 THE SURPRISE MOVE TO APPLY WHAT IS KNOWN AS THE MILLIONAIRE'S SURTAX TO CAPITAL GAINS WAS ADDED BECAUSE SOME SENATORS WERE UNEASY ABOUT RAISING THE MARGINAL TAX RATE ON ORDINARY INCOME TO 396 FOR THE RICHEST AMERICANS WHILE LEAVING THEIR CAPITALGAINS TAX RATE AT 28 WITH SUCH A LARGE DIFFERENCE IN RATES THEY FIGURED THE TEMPTATION TO SEEK OUT WAYS TO CONVERT ORDINARY INCOME TO CAPITAL GAINS WOULD BE ENORMOUS THE PROVISION WOULD COVER ASSETS SOLD ANY TIME THIS YEAR EVEN TRANSACTIONS THAT HAVE ALREADY OCCURRED FOR TAXPAYERS IN THE NEW 36 OR THE OLD 31 OR 28 BRACKETS CAPITAL GAINS WOULD CONTINUE TO BE TAXED AT A 28 RATE FOR THOSE IN THE 15 BRACKET CAPITAL GAINS WOULD CONTINUE TO BE TAXED AT A 15 RATE 9306180073 930618 GOING SOUTH US MINING FIRMS UNWELCOME AT HOME FLOCK TO LATIN AMERICA CITING ENVIRONMENTAL WOES THEY STEP UP SPENDING IN NEWLY FRIENDLY LANDS RICHER ORES ALSO PLAY A ROLE BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL LA JOYA BOLIVIA IN THE THIN AIR OF THE ALTIPLANO A BARREN PLATEAU SOME 12000 FEET ABOVE SEA LEVEL SHINY NEW MILLS DRILL RIGS AND RUMBLING 85TON TRUCKS SIGNIFY MORE US JOBS LOST TO FOREIGN NATIONS AFTER NEARLY THREE CENTURIES THE US MINING INDUSTRY IS LOOKING TO LATIN AMERICA FOR ITS FUTURE OPERATIONS IN 1992 THE NUMBER OF US AND CANADIAN MINING COMPANIES EXPLORING OR OPERATING IN LATIN AMERICA DOUBLED FROM THE YEAR BEFORE WHILE EXPLORATION SPENDING SLIPPED 13 IN THE US IN THE PAST TWO YEARS IT MORE THAN DOUBLED IN LATIN AMERICA AND AS EXISTING MINES PLAY OUT THE COMPANIES ARE LEAVING THE US WITH THE BLESSING IF NOT OPEN ENCOURAGEMENT OF THE CLINTON ADMINISTRATION AND CONGRESS WHICH ARE PROPOSING EVEN STIFFER ENVIRONMENTAL REGULATIONS AND NEW ROYALTIES ON METALS ON PUBLIC LANDS MINING'S CRITICS CONTEND THAT THE US WON'T LOSE MUCH ECONOMICALLY THE SHRINKING INDUSTRY NOW EMPLOYS ONLY ABOUT 500000 US WORKERS AND CRITICS PREDICT WILL RETURN AFTER PLUCKING THE EASY DEPOSITS ELSEWHERE BATTLE MOUNTAIN'S CONTRASTING EXPERIENCES IN THE US AND BOLIVIA ILLUSTRATE WHY MINING COMPANIES ARE LEAVING IN THE STATE OF WASHINGTON THE COMPANY AND A PARTNER HAVE BEEN BATTLING FOR 18 MONTHS ENVIRONMENTALISTS WHO OPPOSE THEIR CROWN JEWEL GOLD MINE THE NECESSARY MINING PERMITS ARE STILL AT LEAST SIX MONTHS AWAY BUT HERE IN BOLIVIA BATTLE MOUNTAIN WAS WELCOMED AS A SOURCE OF JOBS AND TAX REVENUE AND EVEN AS A PROTECTOR OF THE ENVIRONMENT THE COMPANY RECEIVED ALL NEEDED PERMITS THE DAY IT GOT THE GOAHEAD FROM LENDERS A US MINING COMPANY HAS TO GO INTERNATIONAL OR IT RUNS A VERY HIGH RISK OF GOING OUT OF BUSINESS SAYS KENNETH WERNEBURG BATTLE MOUNTAIN'S PRESIDENT IN MOVING SOUTH MINERS ARE ALSO FOLLOWING THEIR NOSES IN THE US MOST OF THE HIGHQUALITY AND CHEAPTOMINE ORE HAS BEEN EXTRACTED BUT IN SOUTH AMERICA WHERE DICTATORSHIPS LEFTIST GOVERNMENTS AND CONSTITUTIONAL PROVISIONS HELD DOWN EXPLORATION FOR YEARS DEMOCRATIC REFORMS HAVE NOW STABILIZED ONCEVOLATILE POLITICAL ENVIRONMENTS AND THE MOUNTAINOUS TERRAIN SEEMS A BONANZA AWAITING MODERN EXPLORATION TECHNIQUES IN THE US THERE ARE 10 GEOLOGISTS FOR EVERY PROSPECT SAYS LES VAN DYKE A BATTLE MOUNTAIN SPOKESMAN IN BOLIVIA THERE ARE 10 PROSPECTS FOR EVERY GEOLOGIST THAT MAY CHANGE SOON ONE RECENT MORNING THE PLAZA HOTEL CAFETERIA IN LA PAZ WAS SERVING GEOLOGISTS FROM AMAX GOLD INC EXECUTIVES FROM A SALT LAKE CITY MININGSERVICE FIRM AND MANAGERS FROM BATTLE MOUNTAIN'S JOINTVENTURE COMPANY IN BOLIVIA HAVING BREAKFAST THERE THE NEXT DAY WERE REPRESENTATIVES OF TUCSON'S ARIMETCO INTERNATIONAL INC SAN FRANCISCO'S MINERAL RESOURCES DEVELOPMENT INC AND DENVER'S MINPROC TECHNOLOGY INC AND US COMPANIES AREN'T MERELY LOOKING AROUND NEWMONT MINING CORP OF DENVER WILL SPEND 18 MILLION OF ITS 30 MILLION EXPLORATION BUDGET NEXT YEAR OVERSEAS MUCH OF IT IN LATIN AMERICA CYPRUS MINERALS CORP HAS LEASED SOME BOLIVIAN PROSPECTS FOR EXPLORATION AND IS CONSIDERING JOINTVENTURE OFFERS FROM STATEOWNED COMPANIES IN CHILE AND PERU PHELPS DODGE CORP HAS BEGUN BUILDING A 560 MILLION COPPER MINE IN NORTHERN CHILE AMAX GOLD RECENTLY PURCHASED INTERESTS IN TWO GOLD PROJECTS IN CHILE AND IS EXPLORING FOR MORE IN BOLIVIA BOTH COEUR D'ALENE MINING CORP AND AMERICAN RESOURCE CORP RECENTLY CONSTRUCTED MAJOR GOLD MINES IN LATIN AMERICA CERTAINLY IT ISN'T ALL GOLDEN SOUTH OF THE BORDER SOME OPPOSITION TO FOREIGN INVESTMENT LINGERS ON ESPECIALLY IN AREAS WHERE MINING UNIONS HAVE BEEN STRONG THE STATEOWNED CORPORACION MINERA DE BOLIVIA COMIBOL HAS LAID OFF TENS OF THOUSANDS OF SUPERFLUOUS MINERS AND THE COMIBOL UNION FEARS THAT FOREIGN INVESTMENT WILL CAUSE FURTHER LOSS OF MEMBERS AND CLOUT IN ADDITION AN ENVIRONMENTAL MOVEMENT IS ARISING A CHILEAN ENVIRONMENTAL AGENCY FORCED PHELPS DODGE TO RELOCATE A PORT FOR A NEW COPPER MINE AFTER COMPLAINTS FROM A NEARBY SCALLOP FARM AND AIDED BY 67000 APPROPRIATED BY THE US CONGRESS A US AGENCY AND SOME EUROPEAN COUNTRIES PROPOSED AN ENVIRONMENTAL LAW FOR BOLIVIA LAST YEAR THAT WOULD HAVE KILLED ALL MINING PROJECTS IN THE COUNTRY A LESSSTRINGENT LAW WAS PASSED SINCE 1988 HOWEVER EIGHT JOBHUNGRY LATIN AMERICAN COUNTRIES HAVE REWRITTEN THEIR MINING LAWS TO ENCOURAGE FOREIGN INVESTMENT PERU ELIMINATED PRICE CONTROLS LIFTED FOREIGNEXCHANGE RESTRICTIONS AND STARTED PRIVATIZING STATE VENTURES MEXICO ABOLISHED MINING ROYALTIES GONZALO SANCHEZ DE LOSADA CHAIRMAN OF BOLIVIA'S BIGGEST PRIVATE MINING COMPANY WAS RECENTLY ELECTED THE COUNTRY'S PRESIDENT AND MANY MINERS ONCE STRONGLY SOCIALISTIC HAVE CHANGED THEIR MINDS ABOUT FOREIGN INVESTMENT AND CAPITALISM THANKS TO SUCH SUCCESSES AS KORI KOLLO IN THE US RURAL WESTERN COUNTIES ALREADY REELING FROM DECLINES IN THE NUMBER OF FARMS AND RANCHES AND CUTBACKS IN THE DEFENSE INDUSTRY WILL BE THE HARDEST HIT BY THE FLIGHT OF THE MINING COMPANIES THEIR DEPARTURE MIRRORS WHAT HAPPENED EARLIER IN THE OIL INDUSTRY WHERE THE US HAS LOST 500000 JOBS IN THE PAST DECADE AND AS IN THE CASE OF OIL THE US WILL HAVE TO IMPORT MORE METAL TO THE DETRIMENT OF ITS ALREADYLOPSIDED BALANCE OF TRADE MINERS HAVEN'T HAD MUCH SUCCESS COUNTERING THEIR CRITICS IN WASHINGTON WHERE THE SPARSELY POPULATED STATES IN WHICH THEY OPERATE HAVE LITTLE POLITICAL CLOUT ESPECIALLY WITH THE ENVIRONMENTAL ORIENTATION OF THE CLINTON ADMINISTRATION JIM HILL A NEWMONT MINING SPOKESMAN SAYS OUR BIGGEST POLITICAL RISK IS IN THE US EVEN THOUGH THE COMPANY'S PERUVIAN MINING PROJECT REQUIRES HEAVY SECURITY AGAINST THE SHINING PATH GUERRILLAS US INDIFFERENCE TO MINING IS JUST FINE WITH LATIN AMERICANS AT A RECENT MINING CONFERENCE IN MIAMI FAUSTO MIRANDA PAZ A MEXICAN ATTORNEY JOKED THAT HIS COUNTRY A MAJOR BENEFICIARY OF US MINING INVESTMENT SHOULD MAKE CAMPAIGN CONTRIBUTIONS TO THE LEGISLATORS PROPOSING HIGH ROYALTIES IN THE US WE ARE VERY GRATEFUL HE SAID THIS SUMMER PERU BOLIVIA AND ARGENTINA HAVE SENT OR WILL SEND OFFICIAL MINING DELEGATIONS TO DENVER TO COURT US COMPANIES THE INDUSTRY'S PROBLEMS IN THE US ARE EVIDENT IN OLYMPIA WASH WHERE THE PERMITTING PROCESS FOR THE CROWN JEWEL MINE OWNED BY BATTLE MOUNTAIN AND CROWN RESOURCES CORP IS DRAGGING ON AND ON ENVIRONMENTALISTS MAKE NO BONES ABOUT WHAT IS HAPPENING WE WILL CERTAINLY CHALLENGE IT EVERY STEP OF THE WAY SAYS CHRISTOPHER CARREL EXECUTIVE DIRECTOR OF THE WASHINGTON WILDERNESS COALITION THE COALITION OF 22 ENVIRONMENTAL GROUPS HAS ASSAILED THE PROJECT AT THREE PUBLIC HEARINGS AND SUBSEQUENTLY SUBMITTED 600 PAGES OF COMMENTS TO WHICH THE COMPANIES UNDER THE LAW MUST RESPOND IT'S NOT A LOT OF FUN TO HIKE AROUND AN OPEN PIT MR CARREL SAYS BESIDES HE ADDS THE GROUP ISN'T CONVINCED THE CYANIDE SOLUTIONS USED TO PROCESS ORE CAN BE CONTAINED SAFELY AND WORRIES ABOUT WATER SUPPLIES THE GROUP PROPOSED A 40PAGE BILL THAT WOULD HAVE LENGTHENED THE STATE'S PERMITTING PERIOD TO AT LEAST FIVE YEARS A SUREFIRE PROJECTKILLER THE COMPANIES SAY WHEN THE BILL DIDN'T PASS THE LEGISLATURE THE COALITION SPONSORED NEWSPAPER ADS AND RADIO SPOTS ADVOCATING DECLARATION OF A STATE OF EMERGENCY WHICH WOULD HAVE TRIGGERED A MORATORIUM ON MINING THE GOVERNOR WOULDN'T DO THAT BUT THE GROUP IS STILL PUSHING HIM TO SIGN A MORATORIUM UNTIL STIFFER REGULATIONS ARE ENACTED EVEN WITHOUT NEW LEGISLATION THE CROWN JEWEL MINE MUST RECEIVE 56 DIFFERENT PERMITS FROM 32 DIFFERENT AGENCIES TO PROCEED PREPARING THE 1000PAGE ENVIRONMENTALIMPACT STATEMENT ALONE IS OCCUPYING 250 PEOPLE 100 MORE THAN THE MINE ITSELF WOULD EMPLOY IT ALSO IS ADDING 5 MILLION TO BATTLE MOUNTAIN'S INITIAL DEVELOPMENT COSTS WHICH TOTAL 70 MILLION ALL THIS FRUSTRATION ALONG WITH FALLING RESERVES AT ITS FORTITUDE NEV GOLD MINE HASTENED BATTLE MOUNTAIN'S DECISION TO LOOK SOUTH FOR NEW PROSPECTS IN 1989 THE COMPANY FOUND KORI KOLLO WHICH WAS A SMALL MINE HERE OWNED BY ZELAND MINES LTD OF PANAMA AND HAD BEEN MINED OFF AND ON SINCE THE 1700S WITH BATTLE MOUNTAIN FUNDING HOWEVER A GOLD DEPOSIT OF 47 MILLION OUNCES WAS DEFINED AND INTIRAYMI SA AS THE PARTNERSHIP BETWEEN ZELAND AND BATTLE MOUNTAIN IS KNOWN PROMPTLY STARTED NEGOTIATIONS WITH TOWNSPEOPLE TO BUY THE LAND AROUND THE DEPOSIT WHEN INTIRAYMI OFFICIALS RANG THE ANCIENT CHURCH BELLS AT THE TINY VILLAGE OF CHUQUINA TO CALL A TOWN MEETING ONLY TWO PEOPLE SHOWED UP THE ADOBE HUTS HAD LONG SINCE BEEN ABANDONED THEIR OWNERS HAD MOVED TO HUNT FOR JOBS IN THE CITIES IN NEARBY LA JOYA JUST 25 RESIDENTS REMAINED BARELY SCRATCHING OUT A LIVING BY FARMING AND SMALLSTAKES MINING ALL THAT CHANGED AFTER INTIRAYMI AGREED TO RELOCATE CHUQUINA SUPPLYING MATERIALS AND ARCHITECTS FOR NEW HOMES A NEW SCHOOL A NEW CHURCH A GOVERNMENT BUILDING AND A HOSPITAL IT ALSO BROUGHT IN WATER SEWERS AND ELECTRICITY IN RETURN FOR THE COMMUNITYOWNED LAND IN LA JOYA IT BROUGHT IN ELECTRICITY DRILLED WATER WELLS REMODELED THE OLD LA JOYA CHURCH AND BUILT A NEW SCHOOL AND FIRSTAID CLINIC TODAY CHUQUINA'S POPULATION IS BACK TO 500 AND LA JOYA'S 1000 MOSTLY BECAUSE OF WORK AT THE MINE ALL BUT TWO OF THE 550 JOBS THERE ARE HELD BY BOLIVIANS THEY ARE AN OBLIGING WORK FORCE AFTER ALL PAY AT KORI KOLLO AVERAGES ABOUT 400 A MONTH COMPARED WITH AN AVERAGE BOLIVIAN FACTORY WORKER'S 100 A MONTH AND MINING JOBS ARE SCARCE IN THE PAST FIVE YEARS COMIBOL EMPLOYMENT HAS DWINDLED TO 6000 FROM 35000 NOT SURPRISINGLY INTIRAYMI'S RECENT NEGOTIATIONS WITH TWO UNIONS WERE RESOLVED IN JUST TWO DAYS BATTLE MOUNTAIN HAS ALSO BEEN PLEASED WITH ITS OPERATIONS HERE IT WAS ABLE TO RECRUIT SOME OF THE COUNTRY'S BEST MINING ENGINEERS AND GEOLOGISTS WHO ENSURED A QUICK STARTUP MINERS WERE EASILY TRAINED AND CONSTRUCTION CREWS WERE EFFICIENT WHILE THE COMPANY HAS SPENT ABOUT 235 MILLION INCLUDING DEVELOPMENT COSTS FOR ITS 85 STAKE IN THE MINE LOW LABOR COSTS HAVE KEPT CASH OPERATING COSTS LOWABOUT 180 AN OUNCE COMPARED WITH A US AVERAGE OF ABOUT 240 AN OUNCE INTIRAYMI ALSO COMPLETED THE PROCESSING MILL TWO MONTHS AHEAD OF SCHEDULE DESPITE THE DIFFICULT TERRAIN THE ALTIPLANO IS RINGED BY 20000FOOT PEAKS AND THE LACK OF PAVED HIGHWAYS BOLIVIA A COUNTRY THE SIZE OF FRANCE AND SPAIN COMBINED HAS JUST 1000 MILES OF THEM BATTLE MOUNTAIN BUILT A 45MILE POWER LINE AND TO BRING IN SUPPLIES A 250MILE GRAVEL ROAD FROM LA JOYA TO ARICA ON THE CHILEAN COAST IT BUILT A TOWN FOR ITS MANAGERS AND AN AIRSTRIP BATTLE MOUNTAIN AND ZELAND ALSO ARE TRYING TO AVOID THE RUTHLESS COLONIALIST IMAGE THAT LONG PLAGUED THE INDUSTRY IN LATIN AMERICA AND LED TO THE NATIONALIZATION OF MINES IN THE 1950S AND 1960S THE JOINT VENTURE'S INTIRAYMI FOUNDATION HAS STARTED 18 MILLION IN CHARITABLE PROJECTS INTRODUCING BETTER STRAINS OF GRAIN AND LIVESTOCK IMPROVING WATER SYSTEMS AND BUILDING 14 SCHOOLS TWENTY WOMEN MANY OF WHOM USED TO PAN FOR GOLD TO SUPPORT THEIR FAMILIES NOW WEAVE SCARVES AT A COOPERATIVE SET UP BY THE FOUNDATION SITTING AT A PRIMITIVE LOOM NANCY QUISPE DE LOPEZ 32 YEARS OLD RECALLS ONCE BEING UNABLE TO FIND A TEACHING JOB BUT NOW SHE EARNS 100 A WEEK MORE THAN A TEACHER MAKES WEAVING IN A NEW BRICK BUILDING CLOSE TO LA JOYA'S MAZE OF ADOBE HOMES COMBINED WITH HER HUSBAND'S MINING PAY HER EARNINGS ENABLE THE FAMILY TO PUT FRESH FRUIT ON THE TABLE A LUXURY ON THE BARREN PLAINS LOCAL RESIDENTS ALSO HAIL BATTLE MOUNTAIN'S ENVIRONMENTAL POLICIES THE COMPANY SAYS IT FOLLOWS US ENVIRONMENTAL PROTECTION AGENCY STANDARDS AT KORI KOLLO AS DEMANDED BY MOST INTERNATIONAL LENDING AGENCIES AND BANKS IT HAS CONSTRUCTED A CLOSED SYSTEM THAT RECYCLES THE CHEMICALS AND WATER USED IN THE MINING AND MILLING THAT IS A CHANGE IN SOUTH AMERICA A CONTINENT OVERRUN BY LONEWOLF PROSPECTORS WHO HAVE POISONED STREAMS WITH MERCURY AND WHOSE HYDRAULIC JETS HAVE WASHED TONS OF MOUNTAIN SOIL INTO RIVERS EVEN PHILIP HOCKER PRESIDENT OF THE MINERAL POLICY CENTER A US ENVIRONMENTAL GROUP CONCEDES THAT THE BIG US AND CANADIAN COMPANIES HAVE GENERALLY FOLLOWED GOOD ENVIRONMENTAL PRACTICES ABROAD THERE IS A FACTION WITHIN THE INDUSTRY THAT UNDERSTANDS THAT THEY CANNOT GO ON OPERATING BADLY HE SAYS HOWEVER HE REMAINS SKEPTICAL OF SMALLER COMPANIES ESPECIALLY THOSE WITH BAD ENVIRONMENTAL RECORDS IN THE US BUT FOR THE FORESEEABLE FUTURE BOLIVIA'S HUNGER FOR ECONOMIC DEVELOPMENT AND JOBS WILL PROBABLY CARRY MORE WEIGHT THAN ENVIRONMENTAL CONCERNS ANYWAY THE NEEDS OF THIS COUNTRY ARE VERY DIFFERENT THAN THOSE IN THE US SAYS MARIO MERCADO WHO RUNS ZELAND WORK TAXES ROADS AND SCHOOLS THIS IS WHAT THE MINING INDUSTRY OFFERS 9306180072 930618 INTERNATIONAL US AUSTRALIA SETTLE DISPUTE ON AIR ROUTES TWO NATIONS AGREE TO DROP THREATS TO CURB FLIGHTS OF NORTHWEST QANTAS BY GREGORY N RACZ AND MIRIAM JORDAN STAFF REPORTERS OF THE WALL STREET JOURNAL THE US AND AUSTRALIA SETTLED THEIR FEUD OVER AIRLINE ACCESS TO THE LUCRATIVE ASIANPACIFIC MARKET WITH EACH DROPPING THREATS TO CURB COMPETITOR'S ROUTES AT LEAST UNTIL THE END OF THE YEAR THE AUSTRALIAN GOVERNMENT DROPPED ITS DEMAND THAT NORTHWEST AIRLINES HALT BY JUNE 30 CERTAIN FLIGHTS BETWEEN JAPAN AND AUSTRALIA NORTHWEST A UNIT OF CLOSELY HELD WINGS HOLDINGS INC OFFERS NEW YORKOSAKASYDNEY SERVICE THREE TIMES A WEEK IN RETURN THE US WITHDREW ITS ORDER THAT WOULD HAVE FORCED QANTAS AIRLINES AUSTRALIA'S FLAGSHIP CARRIER TO CANCEL BY JULY 1 THREE OF ITS 10 WEEKLY NONSTOP FLIGHTS BETWEEN SYDNEY AND LOS ANGELES THE ACCORD HAMMERED OUT BY PETER COOK AUSTRALIAN TRADE MINISTER AND FEDERICO PENA US TRANSPORTATION SECRETARY LEAVES THE NUMBER OF FLIGHTS UNCHANGED AND EASES TENSIONS BETWEEN THE TWO COUNTRIES THIS ACCOMMODATION PROVES ONCE AGAIN THE POWER OF NEGOTIATION SAID MR PENA THIS IS A WINWIN FOR BOTH SIDES AND THE BIGGEST WINNER IS THE TRAVELING PUBLIC THE AIR FLAP HIGHLIGHTS THE STRUGGLE BETWEEN GLOBAL CARRIERS FOR SHARES OF THE ASIAPACIFIC MARKET AUSTRALIA AND OTHER NATIONS WANT TO FEND OFF HUNGRY U S CARRIERS WILLING TO DISCOUNT FARES MANY COUNTRIES INCLUDING JAPAN WHICH HAS ALREADY LIMITED CERTAIN FLIGHTS OF UAL CORP'S UNITED AIRLINES CONTEND THAT US CARRIERS ARE POACHING PASSENGERS WHO WOULD OTHERWISE PATRONIZE NATIONAL FLAG CARRIERS BUT THE CLINTON ADMINISTRATION IS CLEARLY WILLING TO FIGHT TO PROTECT US AIRLINES' ACCESS TO OVERSEAS MARKETS THE US AIRLINE INDUSTRY HAS LOST 10 BILLION SINCE 1990 AND IS STRUGGLING TO PULL OUT OF ITS DECLINE YESTERDAY'S PACT SIGNALS THAT PRESIDENT CLINTON'S GETTOUGH INTERNATIONAL AVIATION POLICY MAY BE WORKING ACCORDING TO THE AGREEMENT NORTHWEST CAN CONTINUE TO OPERATE ITS THREE FLIGHTS AS LONG AS THE NUMBER OF PASSENGERS PICKED UP IN OSAKA DOESN'T EXCEED 50 OF THE TOTAL LOAD AUSTRALIA PROPOSED SANCTIONS ON JUNE 1 CLAIMING THAT NORTHWEST REPEATEDLY VIOLATED THE CAPACITY LIMITS THE US AIRLINE WHILE ANNOUNCING IT WILL COMPLY WITH THE 50 LIMIT ALSO SAID IT REGARDS IT AS IMPERMISSIBLE AND EXPECTS FURTHER USAUSTRALIA TALKS TO RESOLVE UNDERLYING DIFFERENCES BY DEC 31 NORTHWEST WHICH SAYS IT AGREED ONLY UNDER DURESS TO THE 50 RULE ARGUES THAT THE RULE VIOLATES THE USAUSTRALIA AVIATION TREATY AND UNFAIRLY LIMITS ITS JAPANESE OPERATIONS DURING THE PAST 12 MONTHS NORTHWEST HAS AVERAGED ABOUT 40 USAUSTRALIA TRAFFIC ON THE OSAKASYDNEY PORTION OF THE ROUTE BUT DURING THE PAST THREE MONTHS THE AIRLINE HAS AVERAGED MORE THAN 50 SAID A NORTHWEST SPOKESMAN AT THE END OF THE YEAR AUSTRALIA WILL REVIEW NORTHWEST'S PERFORMANCE IF AUSTRALIA FINDS THAT NORTHWEST HASN'T BEEN ABLE TO MEET THE PASSENGER LIMIT IT MAY IMPOSE CURBS ON NORTHWEST'S FLIGHTS MEANWHILE NEGOTIATORS WILL MEET TO TRY TO DRAFT A MORE LASTING SOLUTION RICHARD MINTZ SPOKESMAN FOR THE US TRANSPORTATION DEPARTMENT SAID WE'RE CONFIDENT WE WILL HAVE A RESOLUTION TO THIS BY THE END OF THE YEAR THE DEPARTMENT ALSO SAID YESTERDAY'S DECISION WILL ALLOW NORTHWEST TO MAKE DETROIT THE CARRIER'S LARGEST DOMESTIC HUB PART OF THE AUSTRALIAN ROUTE NORTHWEST WHICH PLANS TO BEGIN SERVICE FROM DETROIT OCT 1 WILL ALSO DROP ITS LAWSUIT AGAINST THE AUSTRALIAN GOVERNMENT 9306180071 930618 FORM + FUNCTION BY JOHN PIERSON HERE'S GOOD NEWS FOR THOSE WHO DEMAND TOTAL CONTROL OVER THEIR HAMBURGERS BURGER KING IS TESTING THE WRAPPIE A NEW SANDWICH WRAPPER IN THREE STATES A PLEATED PAPER PACKAGE WRAPPIE ENCIRCLES AND GRIPS THE SANDWICH SEPARATE THE ENDS THROW AWAY AN INNER FLAP AND THE SANDWICH CAN BE HELD AND EATEN WITH ONE HAND WITHOUT ANY RELISH SQUIRTING OUT THE BACK ONTO YOUR LAP ESPECIALLY USEFUL FOR THOSE WHO EAT AND DRIVE WRAPPIE IS AVAILABLE IN THE US FROM IMPERIAL BONDWARE AND JAMES RIVER WHICH CALLS ITS VERSION CROWN WRAP BURGER KING IS TESTING THE PLEATS FIRST ON ITS BREAKFAST SANDWICHES THEY'RE LESS LIKELY TO SPILL STUFF SAYS TERRY ZOERMAN SUPERVISOR AT A BURGER KING RESTAURANT IN HOLLAND MICH KATE HOLCOMB VICE PRESIDENT OF A FRANCHISE GROUP BASED IN DAYTONA BEACH FLA SAYS THE WRAPPIE USES LESS PAPER THAN FLAT WRAP THE BURGER KING PEOPLE SAY THEIR STAFF NEEDS TIME TO LEARN HOW TO GET THE PLEATS AROUND A SANDWICH BUT BETH MASUR A SUPERVISOR IN A GRAND RAPIDS BURGER KING SAYS EMPLOYEES THERE HAVE LEARNED TO DO IT IN FOUR SECONDS COMPARED WITH SEVEN SECONDS FOR FLAT WRAP THE COMPETITION IS CRITICAL BUT ADMIRING THERE'S SOMETHING MAGICAL IN THE WAY IT WRAPS SAYS JEFF CORTOPASSI A MANAGER AT BAGCRAFT CORP OF AMERICA A MAKER OF FLAT WRAPS AND SANDWICH BAGS BUT UNLIKE FLAT WRAP HE SAYS WRAPPIE CAN'T BE CONVERTED INTO A PLACE MAT WRAPPIE'S INVENTOR WRAPCO INTERNATIONAL OF THE NETHERLANDS SAYS IT SHOWED THE PRODUCT TO MCDONALD'S MCDONALD'S SAYS IT IS NOT CURRENTLY LOOKING AT THIS WHAT DO UMBRELLAS TEXAS AND KNEELING INDIAN WOMEN HAVE IN COMMON CONSUMERS DON'T LIKE THEM SAYS A CONSULTANT ON CORPORATE IDENTITY ALVIN SCHECHTER NEW YORK ASKED 600 CONSUMERS WHAT THEY THOUGHT OF 47 COMPANIES BASED ON THEIR NAMES HE THEN GAVE ANOTHER 600 PEOPLE THE COMPANY LOGOS THE TWO GROUPS WERE ASKED TO GRADE EACH COMPANY ON SUCH THINGS AS REPUTATION AND QUALITY FORTYFIVE PERCENT OF THE LOGOS ELICITED ROUGHLY THE SAME RESPONSE AS THE NAMES WHILE 55 EVOKED BETTER OR WORSE MOTOROLA'S LOGO IMPROVED ITS SCORE BY 55 BUICK'S BY 53 BUT THE TRAVELERS UMBRELLA REDUCED THE INSURER'S SCORE 6 TEXAS INSTRUMENTS' LITTLE TEXAS SYMBOL PUSHED DOWN THE COMPUTER MAKER'S RATING 10 AND LAND O'LAKES' KNEELING NATIVE AMERICAN WOMAN DROPPED THE BUTTER COMPANY'S APPROVAL 12 WRITING IN DESIGN MANAGEMENT JOURNAL MR SCHECHTER SUGGESTS THAT TRAVELERS' UMBRELLA A VENERABLE DEVICE APPROPRIATE IN THE COMPANY'S EARLY DAYS HAS GROWN DISTANT FROM THE CONCERNS OF TODAY'S SOPHISTICATED INSURANCE CUSTOMERS TI'S TEXAS SYMBOL IS INAPPROPRIATE TO A HIGHTECH SOPHISTICATED GLOBAL BUSINESS BECAUSE TEXAS IS NOT PERCEIVED AS HAVING THESE CHARACTERISTICS HE SAYS AND A NATIVE AMERICAN WOMAN ON HER KNEES IS NOT POLITICALLY CORRECT MR SCHECHTER ADDS HE URGES PERIODIC REVIEW OF ALL LOGOS TO KEEP UP WITH COMPETITION AND CHANGES IN SOCIAL ATTITUDES THE THREE COMPANIES STAND BY THEIR LOGOS HIS RESEARCH IS DIAMETRICALLY OPPOSED TO ALL OF OUR RESEARCH SAYS PATRICIA STEWART EXECUTIVE VICE PRESIDENT OF CME NEW YORK TRAVELERS' AD AGENCY A SPOKESMAN FOR LAND O'LAKES SAYS THE INDIAN HAS GENERATED A VERY POSITIVE RESPONSE FROM CONSUMERS AND A TEXAS INSTRUMENTS SPOKESMAN SAYS THE COMPANY'S OWN STUDIES SHOW THE TEXAS LOGO TO BE AMONG THE MOST POWERFUL IN THE WORLD PRISON IS MEANT AMONG OTHER THINGS TO REFORM PEOPLE A CELL MADE OF STEEL PROMOTES REFORM BETTER THAN ONE MADE OF CONCRETE A MAYWOOD NJ COMPANY SAYS IN THE VIEW OF MARK CORRECTIONAL SYSTEMS A STEEL CELL IS CLEANER AND A CLEANER CELL IS MORE CONDUCIVE TO HUMAN DIGNITY THAN A DIRTY CELL MORE DIGNITY MEANS LESS REPEAT CRIME AFTER PRISON THE COMPANY SAYS MOST PRISONS BUILT NOW ARE MADE OF CONCRETE BLOCKS PUT TOGETHER ON THE SITE A FEW OF CONCRETE OR STEEL ARE FACTORYMADE AND TRUCKED TO THE SITE WHERE THEY ARE BOLTED TOGETHER BEFORE LEAVING THE FACTORY MARK'S STEEL CELLS ARE COATED WITH EPOXY WHICH THE COMPANY SAYS BONDS ITSELF IMPENETRABLY TO THE STEEL MARK GETS SUPPORT FOR ITS CLAIM OF SUPERIOR CLEANLINESS CAPT VINCE VERACE OF THE JENNINGS MO POLICE DEPARTMENT SAYS 24 STEEL MARK CELLS RECENTLY ADDED TO THE LOCAL CORRECTIONAL FACILITY ARE EASY TO CLEAN AND DON'T RETAIN ANY ODOR THE OLDER CONCRETE CELLS DO RETAIN ODOR DESPITE SEMIANNUAL PAINTING HE SAYS THOSE WHO MAKE CONCRETE DISAGREE MARIO ROTONDO OF ROTONDO COS AN AVON CONN MAKER OF PREFAB CONCRETE CELLS SAYS CONCRETE WITH EPOXY IS AS IMPERVIOUS TO DIRT AND ODOR AS STEEL ROBERT BRODER A CAMBRIDGE MASS ARCHITECT SAYS HE HAS DESIGNED 4000 CELLS AND SEES NO DIFFERENCE IN CLEANLINESS BUT PRISON ARCHITECT TERRY SHULSKY OF EBENSBURG PA SAYS CEMENT PAINTED OR UNPAINTED IS MORE POROUS THAN STEEL AND MICHAEL ROSENBERG MARK'S VICE PRESIDENT FOR SALES SAYS HE HAS VISITED HUNDREDS OF PRISONS AND EXCEPT FOR THOSE WITH STEEL CELLS HE HAS NEVER FOUND ONE THAT DIDN'T STINK OF URINE THE CLAIM THAT CLEANER CELLS MEAN FEWER CRIMINAL REPEATERS HAS SOME SKEPTICS IT'S KIND OF A MINOR DETAIL SAYS JAN ELVIN SPOKESWOMAN FOR THE AMERICAN CIVIL LIBERTIES UNION'S PRISON PROJECT RECIDIVISM IS MUCH MORE LIKELY TO BE INFLUENCED BY WHETHER A CONVICT IS BEATEN UP IN PRISON AND WHETHER HE CAN FIND A JOB WHEN HE GETS OUT MS ELVIN SAYS 9306180070 930618 BUSINESS BRIEF UTILX CORP FISCAL FOURTHQUARTER LOSS OF 52 MILLION IS REPORTED UTILX CORP KENT WASH POSTED A LOSS OF 52 MILLION OR 72 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER CITING A ONETIME CHARGE TO END LITIGATION AND BUY OUT A ROYALTY AGREEMENT FOR THE PERIOD ENDING MARCH 31 THE UTILITIES RENOVATION COMPANY SAID THAT WITHOUT THE 78 MILLION CHARGE IT WOULD HAVE EARNED 360000 OR FIVE CENTS A SHARE THAT COMPARES WITH NET INCOME OF 646000 OR NINE CENTS A SHARE A YEAR EARLIER REVENUE FELL 15 TO 112 MILLION FROM 131 MILLION A YEAR EARLIER THE COMPANY SAID ITS CORE DRILLING BUSINESS SUFFERED FROM INCREASED COMPETITION AND FALLING PRICES FOR THE YEAR THE COMPANY REPORTED A 4 MILLION LOSS OR 55 CENTS A SHARE COMPARED WITH NET INCOME OF 3 MILLION OR 40 CENTS A SHARE A YEAR EARLIER REVENUE DECLINED 7 TO 478 MILLION FROM 516 MILLION 9306180069 930618 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY CLINTON SEEKS TO CAPITALIZE ON HIS WEEK OF SUCCESSES WITH THE GINSBURG NOMINATION WINNING GOOD NOTICES AND THE DEFICITREDUCTION AND CAMPAIGNFINANCE PLANS MOVING THE ADMINISTRATION HOPES TO USE ITS MOMENTUM TO GIVE HEALTHCARE OVERHAUL A NEEDED BOOST WHITE HOUSE HIGHTECH COMMUNICATIONS SPECIALIST JEFF ELLER ORGANIZES A WARROOM NICKNAMED THE INTENSIVE CARE UNIT TO COORDINATE A MARKETING CAMPAIGN FOR THE PROPOSAL CONTINUING HIS MOVE TOWARD THE CENTER CLINTON PLANS TO PAY RENEWED ATTENTION TO WELFARE OVERHAUL WHICH STRATEGISTS SAY STRIKES A NERVE WITH THE MIDDLECLASS VOTER HE MAY ALSO TAKE UP IMMIGRATIONLAW OVERHAUL AN ISSUE OF IMPORTANCE TO CALIFORNIA A MUSTWIN STATE FOR HIM IN 1996 NOTING GERGEN'S QUICKNESS TO CLAIM CREDIT FOR CLINTON'S SUCCESSFUL APPEARANCES SOME DEMOCRATS SNIPE THAT HE IS EVEN BETTER AT PROMOTING HIMSELF THAN PROMOTING THE PRESIDENT WHO SPEAKS FOR THE WHITE HOUSE THAT'S WHAT CAPITOL HILL WANTS TO KNOW CHIEF OF STAFF MCLARTY A FORMER NATURALGAS EXECUTIVE LENT A SYMPATHETIC EAR TO OILPATCH CONSERVATIVES WHO UNDID THE BTU TAX SUPPORTERS OF CLINTON'S PUSH FOR RUSSIAN AID INCLUDING STATE DEPARTMENT LOBBYISTS WERE UPSET AT PENTAGON CRITICISM OF OTHER ELEMENTS OF THE BILL CONTAINING IT HHS AGGRAVATES ALLIES BY STALLING FOR TIME ON THE QUESTION OF MEDICAID ABORTION FUNDING THOUGH RELATIONS ARE IMPROVING WITH REPUBLICAN MODERATES THEY STILL HAVE A WAY TO GO EVEN THOUGH GOP FINANCE COMMITTEE MEMBERS SERVED NOTICE THEY WOULDN'T HELP DEMOCRATS PASS A TAX BILL SEN CHAFEE WHO HAS LONGSTANDING TIES WITH CHAIRMAN MOYNIHAN ON OTHER ISSUES COMPLAINS AT BEING SHUT OUT OF DELIBERATIONS THE DOLLAR HAS FALLEN AND IT CAN'T GET UP BENTSEN WHOSE COMMENTS PUSHED THE DOLLAR DOWN BACK IN FEBRUARY PUBLICLY INSISTS THAT THE US DOESN'T WANT IT TO FALL ANY FURTHER BUT DESPITE AN UPTICK YESTERDAY FINANCIAL MARKETS CONTINUE TO PUSH THE DOLLAR TO NEW LOWS AGAINST THE YEN US OFFICIALS INSIST THE PROBLEM IS MADE IN TOKYO NOT IN WASHINGTON KEMPER ECONOMIST DAVID HALE SAYS TRADE TENSIONS ARE LARGELY TO BLAME BUT US OFFICIALS DON'T WANT THE DOLLAR TO STRENGTHEN MUCH EITHER THE 15 RISE IN THE YEN SO FAR THIS YEAR THEY FIGURE WILL REDUCE JAPAN'S TRADE SURPLUS ABOUT AS MUCH AS THE US DESIRES A FURTHER WEAKENING OF THE DOLLAR WOULD CONCERN THE FED BECAUSE A WEAK DOLLAR TENDS TO PUSH UP PRICES BUT SO FAR THE FED ISN'T ALARMED THE DOLLAR'S WOES AREN'T WIDESPREAD BECAUSE OF GERMANY'S WORSENING ECONOMY THE DOLLAR IS BACK TO WHERE IT WAS IN MARCH ITS RECENT HIGH AGAINST THE MARK CLINTON'S CALL FOR INTERNATIONAL BACKING FOR AN AMBITIOUS RUSSIAN PRIVATIZATION FUND GETS A COOL RECEPTION HE PRIVATELY WRITES OTHER G7 LEADERS URGING SUPPORT FOR THE FUND AT THE ECONOMIC SUMMIT NEXT MONTH BUT WHILE GERMANY AND JAPAN HAVE EXPRESSED SOME WILLINGNESS AFTER US ARMTWISTING THE OTHER ALLIES RESIST BOTH SIDES NOW WHILE PUSHING TO ELIMINATE TAX BREAKS SEN BRADLEY ALSO FIGHTS TO EASE THE PROPOSED CUTBACK OF THE PUERTO RICO TAX CREDIT WHICH BENEFITS DRUG COMPANIES LIKE NEW JERSEY'S MERCK BRADLEY SAYS THE ADMINISTRATION HAS AGREED TO EASE THE PROVISION IN PART BECAUSE OF PRESSURE FROM HISPANIC LAWMAKERS CONCERNED ABOUT THE EFFECT ON PUERTO RICO ACCOUNT RECEIVABLE RETIRED JUDGE FREDERICK LACEY HIRED BY THE BUSH JUSTICE DEPARTMENT TO INVESTIGATE CHARGES OF A COVERUP OF DEALINGS WITH IRAQ BEFORE THE GULF WAR PRESENTS A BILL FOR 327392 HE USED 16 ATTORNEYS FROM HIS FIRM IN THE SEVENWEEK PROBE WHICH FOUND THE COVERUP CHARGES BASELESS BIG WINNERS IN ASPIN'S TOPTOBOTTOM REVIEW OF THE MILITARY MAY BE THE MARINES INTERNAL PENTAGON PLANS CURRENTLY SLATE THE OTHER SERVICES FOR BIG PERSONNEL CUTS BUT BOOST THE MARINES BY ALMOST 10 ON THE GROUNDS THEY ARE LIKELY TO BE BUSIER THAN EVER IN THE POSTCOLD WAR WORLD MARINE GEN HOAR EMERGES AS A CONTENDER TO CHAIR THE JOINT CHIEFS NEGOTIATORS NEAR A DEAL TO JUMPSTART STALLED WORLDTRADE TALKS THE US IS CONFIDENT THAT EUROPE AND JAPAN WILL AGREE TO ELIMINATE TARIFFS ON DRUGS MEDICAL EQUIPMENT CONSTRUCTION EQUIPMENT PAPER PRODUCTS AND BEER IN ADDITION THE US EXPECTS DEEP TARIFF CUTS IN ELECTRONICS AND CHEMICALS WITH EUROPE'S ECONOMIC TROUBLES AMERICAN NEGOTIATORS BELIEVE THEY WON'T HAVE TO GIVE UP MUCH THUS THEY DON'T EXPECT TO HAVE TO CUT TEXTILE TARIFFS BY 50 AS THE BUSH ADMINISTRATION WAS READY TO DO BUT PROBLEMS REMAIN EUROPE REJECTS TRADE REPRESENTATIVE KANTOR'S PUSH FOR THE EC TO DROP ITS QUOTAS ON US TV PROGRAMS MEANWHILE EUROPE ADAMANTLY OPPOSES CUTTING SEMICONDUCTOR TARIFF LEVELS MUCH JAPAN HOLDS BACK ON WOOD PRODUCTS SPIRITS AND FINANCIAL SERVICES MINOR MEMOS AT A CONCERT CHILDREN'S SINGER RAFFI WONDERS HOW ROSS PEROT'S VERSION OF BABY BELUGA WOULD SOUND THEN CONCLUDES HE WOULDN'T SING IT HE'D EXPLAIN IT COMMUTER MARRIAGE SYDNEY WILLIAMS HUSBAND OF CALIFORNIA REP MAXINE WATERS IS SLATED TO BE AMBASSADOR TO THE BAHAMAS COMPLAINING THAT DEMOCRATS IGNORED THEM ON THE TAX BILL REPUBLICANS SHOW UP AT A FINANCE COMMITTEE HEARING WEARING NAME TAGS 9306180068 930618 INTERNATIONAL EC'S GROWING UNEMPLOYMENT PROVOKES QUESTIONS ABOUT ECONOMIC PRACTICES BY PETER GUMBEL AND CHARLES GOLDSMITH STAFF REPORTERS OF THE WALL STREET JOURNAL PARIS WESTERN EUROPE'S ECONOMIC ORTHODOXY IS UNDER ATTACK FACED WITH SOARING UNEMPLOYMENT EXPECTED TO REACH 12 NEXT YEAR AND A RECESSION FAR DEEPER THAN EXPECTED EUROPEAN COMMUNITY GOVERNMENTS ARE INCREASINGLY TEMPTED TO RELAX THEIR TOUGH ANTIINFLATION STANCE OF THE PAST DECADE IN ITS PLACE IS A NEW POLITICALLY DRIVEN FOCUS ON CREATING JOBS EVEN IF IT MEANS HIGHER GOVERNMENT SPENDING BUT EXPERIENCE SHOWS THIS IS A QUESTIONABLE AND ECONOMICALLY RISKY TACTIC AS A RESULT THERE IS PRESSURE FOR THE FIRST TIME TO OPEN AN ECWIDE DEBATE ON WHETHER EUROPE'S EXTENSIVE SOCIAL WELFARE SYSTEMS PARTLY DESIGNED TO SOFTEN THE BLOW OF UNEMPLOYMENT ARE IN FACT HINDERING JOB CREATION WHEN EC LEADERS MEET MONDAY IN COPENHAGEN FOR A REGULAR TWICEAYEAR SUMMIT HOW TO CREATE MORE LASTING JOBS WILL BE THE FIRST AND BIGGEST QUESTION ON THE AGENDA IT WILL ALSO INFLUENCE THE EC LEADERS' DISCUSSION OF OTHER MATTERS SUCH AS THE CONTINUING DISAGREEMENTS OVER WORLD TRADE TALKS AND THE QUESTION OF HOW FAR TO OPEN WESTERN MARKETS TO GOODS FROM EASTERN EUROPE AND RUSSIA IN A LETTER TO HIS EC COLLEAGUES PRIME MINISTER POUL NYRUP RASMUSSEN OF DENMARK THE SUMMIT HOST STRESSED THAT THE MEETING SHOULD TACKLE THE UNDERLYING STRUCTURAL WEAKNESSES IN OUR ECONOMIES TO ACHIEVE A LASTING IMPROVEMENT IN THE UNACCEPTABLY HIGH LEVEL OF UNEMPLOYMENT IN THE COMMUNITY THE QUESTION IS HOW EUROPEAN POLITICIANS STILL TALK ABOUT THE NEED TO FOSTER PRIVATE BUSINESS TO CREATE JOBS BUT THAT ASSUMPTION IS QUESTIONED IN A STUDY BY THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT WHILE JOB GROWTH IN THE US AND JAPAN HAS BEEN LARGELY IN THE PRIVATE SECTOR IN EUROPE FOR THE PAST 20 YEARS IT HAS BEEN MAINLY IN THE NONCOMMERCIAL PUBLIC SECTOR THE REPORT SAYS INDEED THE OECD EXPRESSES ALARM THAT UNTIL RECENTLY IN THE EUROPEAN COMMUNITY THERE HAS BEEN ALMOST NO JOB GROWTH IN THE PRIVATE SECTOR PRIVATE BUSINESS IN EUROPE USED THE BOOMING 1980S TO MAKE SIGNIFICANT GAINS IN PRODUCTIVITY OFTEN AT THE EXPENSE OF JOBS IN COPENHAGEN JACQUES DELORS THE FRENCHMAN WHO HEADS THE EC'S EXECUTIVE COMMISSION IS EXPECTED TO OUTLINE SEVERAL PROPOSALS ON JOB CREATION HIS THINKING APPARENTLY INCLUDES CONCERN ABOUT HIGH SOCIAL CHARGES PAID BY EMPLOYERS THAT HAVE PUSHED UP THE COST OF LABOR IN THE EC SAYS A DELORS AIDE BUT MR DELORS A SOCIALIST ISN'T ABOUT TO ROLL BACK THE EUROPEAN WELFARE STATE THE OFFICIAL ADDS HIS APPROACH WOULD BE NOT WHETHER TO KEEP THE EUROPEAN SYSTEM OF SOCIAL PROTECTION BUT HOW EUROPEAN COMMUNITY EMPLOYERS ARE EAGER FOR SUCH A DEBATE IN A MESSAGE TO THE COPENHAGEN SUMMIT PARTICIPANTS THEIR LOBBY GROUP THE UNION OF INDUSTRIAL AND EMPLOYERS' CONFEDERATIONS OF EUROPE CALLS FOR URGENT STEPS TO BOOST COMPETITIVENESS INCLUDING MORE FLEXIBLE LABOR MARKET CONDITIONS AND A LESSENING OF THE ROLE OF THE STATE IN EUROPEAN ECONOMIES IT MUST BE GENERALLY REALIZED THAT ADAPTATION OF THE EUROPEAN SYSTEM TO THE NEW REALITIES IS NOW INESCAPABLE TO OPTIMIZE OUR RESOURCES AND THEREBY HALT EUROPE'S DECLINE THE GROUP CONTENDS GOVERNMENTS FEAR SOCIAL UNREST COULD DEVELOP UNLESS SOMETHING IS DONE TO REVERSE THE TREND TOWARD MORE UNEMPLOYMENT MOREOVER WITH IMPORTANT ELECTIONS DUE IN GERMANY FRANCE AND ELSEWHERE IN THE NEXT 18 MONTHS THE POLITICAL PRESSURE FOR ACTION IS RISING THE DOMINANT ECONOMIC PRINCIPLE OF THE 1980S THAT STABLE NONINFLATIONARY GROWTH WOULD CREATE JOBS IS BEING PUSHED TO ONE SIDE BUDGET DEFICITS ARE NOW GROWING IN MOST EC NATIONS PARTICULARLY GERMANY AND BRITAIN AS GOVERNMENTS TRY TO SPEND THEIR WAY OUT OF RECESSION THE CONVENTIONAL WISDOM WAS THAT IF YOU GET A LEVEL OF ECONOMIC GROWTH YOU CAN EXPECT TO CREATE JOBS BUT IN OUR CASE IT'S NOT TRUE SAYS IRELAND'S PRIME MINISTER ALBERT REYNOLDS SIMILAR ARGUMENTS RESOUND IN OTHER EC STATES LOW INFLATION CANNOT BE THE SOLE END OF ECONOMIC POLICY STRESSED KENNETH CLARKE THE NEW BRITISH CHANCELLOR IN HIS FIRST MAJOR POLICY SPEECH AND IN FRANCE PHILIPPE SEGUIN PRESIDENT OF THE NATIONAL PARLIAMENT THIS WEEK LAUNCHED AN ATTACK ON GOVERNMENT ECONOMIC POLICY HE SAID THE PROBLEM OF UNEMPLOYMENT HAD WRONGLY BEEN RELEGATED TO SECOND PLACE AFTER THE DEFENSE OF THE CURRENCY THE REDUCTION OF PUBLIC DEFICITS PRODUCTIVITY AND THE PROMOTION OF FREE TRADE FOR SOME A SWIFT CONCLUSION TO THE WORLD TRADE TALKS UNDER THE GENERAL AGREEMENT ON TRADE AND TARIFFS WOULD HELP IMPROVE THE DOUR ECONOMIC CLIMATE AND HELP BOOST EMPLOYMENT BUT THAT ASSUMPTION IS NOW BEING OPENLY QUESTIONED BY MR SEGUIN AND OTHERS WHO ARGUE THAT GATT IS OUTDATED AND THE UNFETTERED FREE TRADE IT REPRESENTS WOULD SPEED THE DEMISE OF EUROPEAN JOBS THE EC SHOULD REMAIN A SINGLE MARKET BUT ONE THAT IS MUCH TOUGHER IN DEFENDING ITSELF AGAINST THE US AND ASIA MR SEGUIN ARGUES THE LIKELIHOOD OF A GATT DEAL HAS ALSO BEEN PUT FURTHER INTO DOUBT BY GERMANY IN AGREEING TO A DEAL WITH THE US ON TELECOMMUNICATIONS ESSENTIALLY A MUTUAL NONAGGRESSION PACT GERMANY HAS APPEARED TO BREAK RANKS WITH ITS EC PARTNERS SAFEGUARDING JOBS AT HOME IS ALSO AT ISSUE IN THE OTHER KEY MATTER TO BE DISCUSSED AT COPENHAGEN MARKET ACCESS THE NEW DEMOCRACIES OF EASTERN EUROPE COMPLAIN BITTERLY THAT THE EC IS HAMPERING THEIR PATH TO POSTCOMMUNIST PROSPERITY BY BLOCKING THE ENTRY OF MANY OF THEIR PRODUCTS IN COPENHAGEN EC LEADERS ARE EXPECTED TO PLEDGE THAT THEIR MARKETS ARE OPEN FOR EASTERN IMPORTS BUT THERE MAY BE LESS TO THE DECLARATION THAN MEETS THE EYE EC FOREIGN MINISTERS MEETING IN LUXEMBOURG EARLIER THIS MONTH ONLY AGREED TO MOST ELEMENTS OF A PACKAGE OF MARKETOPENING MEASURES FOR EASTERN EUROPE AFTER THE EC COMMISSION ABANDONED PLANS TO REPLACE QUOTAS WITH MORE FLEXIBLE CEILINGS ON IMPORTS 9306180067 930618 FOREIGN EXCHANGE DOLLAR ADVANCES AGAINST YEN AND MARK POUND UP ON UK UNEMPLOYMENT DROP BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MIXED AFTER A DAY OF CHOPPY TRADING IT WAS SUPPORTED BY NEWFOUND BULLISH SENTIMENT ABOUT THE CURRENCY AND PRESSURED BY NEWS THAT THE DEUTSCHE BUNDESBANK LEFT GERMAN INTEREST RATES UNTOUCHED AND US APRIL TRADE DEFICIT FIGURES WERE WIDER THAN EXPECTED MEANWHILE THE POUND GAINED AS AN UNANTICIPATED DROP IN UNITED KINGDOM UNEMPLOYMENT REVIVED CONFIDENCE IN THE STATE OF THE BRITISH ECONOMIC RECOVERY TRADERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16590 MARKS UP FROM 16570 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10730 YEN UP FROM 10645 YEN STERLING WAS TRADING AT 15165 UP FROM 15055 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10730 YEN AND AT 16571 MARKS DEALERS SAID MARKET SENTIMENT ABOUT THE DOLLAR HAS TURNED UPBEAT DURING THE WEEK AND REMAINED SO THURSDAY THE DOLLAR IS IN A BID PHASE OR IN DEMAND SAID JAY TUCKER DIRECTOR OF FOREIGN EXCHANGE AT FIRST BOSTON CORP PSYCHOLOGY IS ON ITS SIDE AND IT ISN'T RESPONDING TO BAD NEWS THE BULLISHNESS HAS SPRUNG LARGELY FROM RECENT STATEMENTS BY SENIOR GERMAN OFFICIALS SAID RICK PORTER MANAGER OF CORPORATE TREASURY AT BANK BRUSSELS LAMBERT THE COMMENTS HAVE SEEMED TO POINT TO FRESH CUTS IN GERMAN INTEREST RATES IN THE NEAR FUTURE AND THE UNLIKELINESS OF MAJOR GERMAN INTERVENTION IF THE MARK SHOULD SLIDE HE SAID ALTHOUGH THEY WOULD REMAIN ABOVE US INTEREST RATES LOWER GERMAN RATES WOULD TEND TO MAKE MARKDENOMINATED DEPOSITS LESS ATTRACTIVE TO INVESTORS TRADERS SAID TECHNICAL FACTORS ALSO HAVE CONTRIBUTED TO THE US CURRENCY'S UPSWING MR PORTER SAID THE DOLLAR HAS BROKEN ABOVE SEVERAL LONGTERM TECHNICAL POINTS AGAINST THE MARK THIS WEEK AND THIS AUGURS FURTHER STRENGTH HE SAID HORST SCHULMANN PRESIDENT OF ONE OF GERMANY'S REGIONAL CENTRAL BANKS SAID CURRENT DEVELOPMENTS IN THE MARK OFFER NO CAUSE FOR GREAT CONCERN MR SCHULMANN'S COMMENTS WERE TAKEN TO MEAN THE BUNDESBANK IS LEAVING SOME SCOPE FOR THE DOLLAR TO GO HIGHER AGAINST THE MARK MR AMENDOLA SAID NONETHELESS TRADERS SAID THE BUNDESBANK WAS RUMORED TO HAVE SOLD SOME DOLLARS ABOVE 16600 MARKS DURING THE DAY THE CURRENT WAVE OF POSITIVE SENTIMENT MEANT THE DOLLAR WAS ABLE TO AVOID A LARGE BOUT OF SELLING WHEN THE BUNDESBANK DECIDED AT ITS MEETING THURSDAY TO HOLD KEY OFFICIAL INTEREST RATES STEADY TRADERS SAID THE INACTION HASN'T SIGNIFICANTLY COOLED HOPES FOR NEARTERM RATE REDUCTIONS MR TUCKER SAID THEY WILL CUT EVENTUALLY IF NOT THURSDAY THEN IN A WEEK OR TWO BULLISH SENTIMENT ALSO ALLOWED THE DOLLAR TO REBOUND FROM A DROP BROUGHT ON BY A WIDERTHANEXPECTED US APRIL TRADE DEFICIT MR PORTER SAID ON A SEASONALLY ADJUSTED BASIS THE US TRADE GAP WIDENED TO 1049 BILLION IN APRIL FROM A REVISED 1045 BILLION IN MARCH THE COMMERCE DEPARTMENT REPORTED A SURVEY OF ECONOMISTS HAD FORECAST THE APRIL DEFICIT AT 886 BILLION BOTH IMPORTS AND EXPORTS FELL IN APRIL 1 AND 13 ON A MONTHLY BASIS RESPECTIVELY AND THIS PROVOKED DOLLAR SELLING MR AMENDOLA SAID IT POINTED TO SOFTNESS IN THE US ECONOMY HE SAID IN RECENT MONTHS TRADERS PERSISTENTLY HAVE IDENTIFIED INDICATIONS OF US ECONOMIC HEALTH AS A PREREQUISITE FOR A STRONGER DOLLAR BUT AFTER THE INITIAL SELLING THE DOLLAR RECOVERED AGAINST THE MARK AND YEN IN ALL THE CONFUSION THURSDAY PEOPLE WERE LOOKING TO BUY DOLLARS MR AMENDOLA SAID ESPECIALLY WHEN THE CURRENCY DROPPED 9306180066 930618 BUSINESS BRIEF GENERAL MOTORS CORP ELECTRONIC DATA SYSTEMS NIELSEN AGREE ON SERVICE PACT ELECTRONIC DATA SYSTEMS CORP SAID IT REACHED AN AGREEMENT WITH NIELSEN MARKETING RESEARCH USA TO PROVIDE DATA PROCESSING SERVICES FOR THE NEXT 10 YEARS TERMS WEREN'T DISCLOSED AN EDS SPOKESMAN CHARACTERIZED THE AGREEMENT AS A MEGACONTRACT A TERM THE COMPANY FREQUENTLY HAS USED TO DESCRIBE ITS LARGEST DATA PROCESSING OUTSOURCING PACTS NEGOTIATIONS LEADING TO A FINALIZED CONTRACT ARE EXPECTED TO BE COMPLETED WITHIN 30 DAYS THE COMPANY SAID UNDER THE AGREEMENT EDS THE DALLASBASED COMPUTER SERVICES UNIT OF GENERAL MOTORS CORP WILL PROVIDE HARDWARE AND SOFTWARE MANAGEMENT COMPUTER OPERATIONS AND SYSTEM SOFTWARE SUPPORT FOR NIELSEN'S GREEN BAY WIS DATA CENTER NIELSEN THE MARKET RESEARCH UNIT OF THE DUN & BRADSTREET CORP IS BASED IN NORTHBROOK ILL A SPOKESWOMAN SAID THE AGREEMENT WILL RESULT IN LAYOFFS OF ABOUT 50 PEOPLE AT THE GREEN BAY CENTER 9306180065 930618 BUSINESS BRIEF AMERICAN SCIENCE & ENGINEERING INC STOCK PRICE PLUNGES ON NEWS THAT LOSS FOR PERIOD IS SEEN AMERICAN SCIENCE & ENGINEERING INC'S STOCK DROPPED SHARPLY AFTER THE COMPANY REPORTED SLUGGISH SALES AND SAID IT EXPECTS TO REPORT A LOSS FOR THE FIRST QUARTER ENDING JULY 1 IN COMPOSITE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE AMERICAN SCIENCE CLOSED AT 550 DOWN 2625 FOR THE RECENTLY ENDED QUARTER NET INCOME DROPPED 51 TO 216000 OR FIVE CENTS A SHARE FROM 449000 OR 11 CENTS A SHARE REVENUE ROSE 2 TO 474 MILLION FROM 466 MILLION NET INCOME FOR THE RECENTLY ENDED YEAR WAS 16 MILLION ON REVENUE OF 189 MILLION IN THE YEAREARLIER YEAR THE COMPANY REPORTED A 395000 LOSS THE CAMBRIDGE MASS COMPANY MAKES BOMBDETECTION SYSTEMS IN THE WAKE OF FEBRUARY'S WORLD TRADE CENTER BOMBING IT TRADED BETWEEN 8 AND 9 9306180064 930618 INSURERS' REAL ESTATE WORRIES WORSEN AMID SLUMP IN SOUTHERN CALIFORNIA BY GREG STEINMETZ AND MITCHELL PACELLE STAFF REPORTERS OF THE WALL STREET JOURNAL THE SLUMPING SOUTHERN CALIFORNIA ECONOMY TOOK ITS TOLL ON THE COMMERCIAL REAL ESTATE PORTFOLIOS OF INSURANCE COMPANIES IN THE FIRST QUARTER AS MORTGAGE DELINQUENCIES ROSE FOR THE FIRST TIME SINCE THE SECOND QUARTER OF 1992 IN ADDITION RESTRUCTURED LOANS LOANS WHOSE TERMS WERE EASED TO ACCOMMODATE TROUBLED BORROWERS REACHED A RECORD LEVEL ACCORDING TO THE AMERICAN COUNCIL OF LIFE INSURANCE THE FIGURES SUGGEST THAT THE INSURANCE INDUSTRY'S REAL ESTATE WOES CONTINUE TO WORSEN DESPITE AN IMPROVING NATIONAL ECONOMY AND BETTER RESULTS FOR THE REAL ESTATE PORTFOLIOS OF BANKS THE DELINQUENCY RATE ON COMMERCIAL MORTGAGES HELD BY INSURERS ROSE TO 711 IN THE QUARTER FROM 662 AT YEAR END THE GREATEST DETERIORATION OCCURRED ON THE WEST COAST WHERE THE CUTS IN THE DEFENSE INDUSTRY HAVE CONTRIBUTED TO A PROLONGED ECONOMIC SLIDE WEST COAST DELINQUENCIES ROSE TO 623 FROM 547 AT YEAR END THE DELINQUENCY RATE ACTUALLY IMPROVED IN NEW ENGLAND AND WAS FLAT AT 112 IN THE MIDATLANTIC REGION WHICH INCLUDES NEW YORK NEW JERSEY AND PENNSYLVANIA NATIONWIDE THE DECLINE IN VALUES WAS FAIRLY GRADUAL SAID MICHAEL EVANS DIRECTOR OF THE REAL ESTATE GROUP AT ERNST & YOUNG IN CALIFORNIA YOU HAD A REAL SPIKE DOWN IN VALUES I THINK THE INSURANCE COMPANIES ARE JUST STARTING TO FEEL IT BANKS HAVE HAD MORE SUCCESS IN OVERCOMING THEIR REAL ESTATE PROBLEMS THAN INSURERS THAT'S BECAUSE THEY TYPICALLY MADE SHORTTERM CONSTRUCTION LOANS WHICH MATURED EARLIER THAN THE LOANS MADE BY INSURERS REAL ESTATE PROBLEMS IN FACT ARE ALREADY EASING AT SOME BANKS COMMERCIAL BANKS REPORTED THAT 374 OF ALL REAL ESTATE LOANS WERE 90 DAYS OR MORE PAST DUE AT THE END OF THE FIRST QUARTER DOWN FROM 43 IN LAST YEAR'S THIRD QUARTER ACCORDING TO THE FDIC THE INSURANCE COMPANIES WERE MARKEDLY SLOWER THAN THE BANKS IN RECOGNIZING AND ADDRESSING THEIR REAL ESTATE PROBLEMS SAID BJORN HANSON HEAD OF THE REAL ESTATE GROUP AT COOPERS & LYBRAND UNLIKE BANKS INSURANCE COMPANIES TYPICALLY PROVIDED TAKEOUT FINANCING TO MANY DEVELOPERS OFTEN IN THE FORM OF FIVE AND SEVENYEAR BULLET OR MINIPERM LOANS LARGE NUMBERS OF THOSE LOANS ARE NOW COMING DUE THE RESTRUCTURINGS AND FORECLOSURES ARE EXPECTED TO RESULT IN LOWER RATES FOR LEASING SPACE IN TROUBLED BUILDINGS BORROWERS WHOSE LOANS HAVE BEEN RESTRUCTURED WILL NO LONGER NEED HIGHERTHANMARKET RENTS TO COVER DEBT COSTS AND INSURANCE COMPANIES WHO HAVE TAKEN TITLE TO BUILDINGS WILL BE ANXIOUS TO FILL THE SPACE AS QUICKLY AS POSSIBLE AT BELOW MARKET RATES IF NEED BE SAYS MR EVANS OF ERNST & YOUNG EXPECTED BECAUSE INSURANCE COMPANIES THAT FORECLOSE ON PROPERTIES ARE NOT INCLINED TO UNLOAD THEM AT FIRESALE PRICES THE ACTIVITY IS NOT EXPECTED TO LEAD TO LOWER SALES PRICES ABOUT A FIFTH OF ALL ASSETS OWNED BY INSURANCE COMPANIES ARE MORTGAGES OF THOSE 93 ARE COMMERCIAL MORTGAGES AND IT IS COMMERCIAL MORTGAGES THAT HAVE PROVEN AMONG THE MOST TROUBLESOME PROBLEMS WITH COMMERCIAL MORTGAGES PROMPTED THE COLLAPSE OF MUTUAL BENEFIT LIFE INSURANCE CO IN NEWARK NJ AND HELPED FUEL A DRAMATIC DECLINE IN INVESTMENT INCOME FOR OTHER INSURERS TO COPE WITH THE LOWER INVESTMENT YIELDS INSURERS HAVE HAD TO RAISE CAPITAL AND CUT BACK ON THE INTEREST RATES AND DIVIDENDS THEY PAY POLICYHOLDERS THEY HAVE ALSO TRIED TO MAINTAIN PROFITS BY SELLING BONDS BECAUSE OF LOWER INTEREST RATES THEY HAVE BEEN ABLE TO RECORD SIZABLE CAPITAL GAINS ON BOND SALES THERE'S BEEN A HEAVY VOLUME OF PROFIT TAKING SAID FREDERICK TOWNSEND OF TOWNSEND & SCHUPP HARTFORD CONN AN INSURANCE CONSULTANT HE SAID 45 OF ALL BONDS OWNED BY INSURERS WERE BOUGHT IN THE LAST YEAR VERSUS 335 IN 1990 INDICATING HIGH TURNOVER IN BOND PORTFOLIOS 9306180063 930618 BUSINESS BRIEF MARCAM CORP SOFTWARE COMPANY AGREES TO PURCHASE VARNET GROUP MARCAM CORP NEWTON MASS SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE VARNET GROUP FOR 900000 MARCAM SHARES VALUED AT ABOUT 216 MILLION THE APPLICATIONS SOFTWARE COMPANY SAID THE TRANSACTION IS EXPECTED TO CLOSE THIS MONTH MARCAM OFFICIALS SAID THEY EXPECTED THE AGREEMENT WOULD LOWER EARNINGS IN THE JUNE QUARTER DUE TO CLOSING COSTS BUT THAT EARNINGS WOULD REBOUND IN FISCAL 1994 THEY ALSO SAID THE COMPANY WOULD ISSUE 900000 NEW SHARES REPRESENTING SLIGHTLY LESS THAN 10 PERCENT OF OUTSTANDING SHARES VARNET GROUP SUPPLIES OPEN SYSTEMS APPLICATION SOFTWARE FOR MANUFACTURING DISTRIBUTION FINANCIAL AND FIELD SERVICE FUNCTIONS MARCAM SAID IT WILL MARKET VARNET'S PRODUCTS AS ITS MAPICS XP PRODUCT LINE IN THE FISCAL YEAR ENDED APRIL 30 VARNET EARNED 14 MILLION ON REVENUE OF 129 MILLION MARCAM SAID FOR THE FISCAL YEAR ENDED SEPT 30 MARCAM EARNED 86 MILLION OR 102 A SHARE ON REVENUE OF 803 MILLION IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MARCAM CLOSED AT 24 UNCHANGED 9306180062 930618 BUSINESS BRIEF ROHR INC COMPANY SIGNS PACT TO PAY CERTAIN SUMS' TO END SUITS ROHR INC SIGNED A DEFINITIVE AGREEMENT TO PAY CERTAIN SUMS TO SETTLE CLAIMS RELATED TO SHAREHOLDER LAWSUITS FILED IN 1989 THE SUITS WHICH WERE EVENTUALLY AWARDED CLASSACTION STATUS ALLEGED THAT THE CHULA VISTA CALIF COMPANY ISSUED A SERIES OF FALSE AND MISLEADING STATEMENTS ABOUT ITS FINANCIAL CONDITION THE SETTLEMENT FILED LAST MONTH IN FEDERAL COURT IN SAN DIEGO WOULD BRING TO AN END THE CASE IN WHICH SHAREHOLDERS SUED ROHR AND ITS 10 DIRECTORS WHO WERE SERVING THE COMPANY IN 1989 ROHR IS AN AEROSPACE CONCERN THAT DESIGNS MAKES AND SUPPORTS ENGINE NACELLE SYSTEMS AND PARTS FOR COMMERCIAL MILITARY AND BUSINESS AIRCRAFT ROHR IS EXPECTED TO PAY 1 MILLION TO SETTLE THE CLAIMS THE ASSOCIATED PRESS REPORTED THE COMPANY DECLINED TO CONFIRM THE AMOUNT 9306180061 930618 NEW YORK OFFICIAL URGES CANCELING BAXTER CONTRACTS NEW YORK CITY COMPTROLLER ELIZABETH HOLTZMAN URGED THE CITY PUBLIC HOSPITAL SYSTEM TO CONSIDER CANCELING CONTRACTS WITH BAXTER INTERNATIONAL INC OVER THE COMPANY'S RECENT FELONY GUILTY PLEA THE CITY COMPTROLLER RECOMMENDED THAT THE 22HOSPITAL HEALTH AND HOSPITALS CORP TAKE ACTION AGAINST BAXTER BECAUSE OF WHAT SHE TERMED THE COMPANY'S PARTICIPATION IN THE ARAB BOYCOTT OF ISRAEL BAXTER PLEADED GUILTY IN MARCH TO THE FEDERAL FELONY OF SUPPLYING TO ARAB BOYCOTT OFFICIALS WITH DETAILS OF THE COMPANY'S BUSINESS IN ISRAEL INCLUDING THE SALE OF A PLANT THERE MS HOLTZMAN WHO DOESN'T HAVE LEGAL AUTHORITY OVER THE HOSPITAL GROUP ACCUSED BAXTER OF FAILING TO TELL THE TRUTH WHEN ASKED BY HEALTH AND HOSPITALS CORP OFFICIALS WHETHER IT HAD PARTICIPATED IN THE ARAB BOYCOTT THE CORPORATION RUNS 22 PUBLIC HOSPITALS AND CLINICS IN NEW YORK CITY A SPOKESWOMAN FOR THE HOSPITALS CORPORATION SAID SHE DIDN'T IMMEDIATELY KNOW HOW MUCH BUSINESS IT DOES WITH BAXTER BASED IN DEERFIELD ILL BAXTER CHAIRMAN VERNON R LOUCKS JR HAS DENIED ANY PRIOR KNOWLEDGE OF SENDING INFORMATION TO BOYCOTT AUTHORITIES 9306180060 930618 MARKETING & MEDIA TORONTO BREWER LAUNCHES LOWERPRICE BEER BRAND TORONTO JOHN LABATT LTD FACING PRESSURE FROM AN EXPECTED INVASION OF LESS EXPENSIVE US BEER IMPORTS ROLLED OUT ITS POPULARPRICE SUDS THE FIRST ENTRY BY A BIG CANADIAN BREWER TO THE LOW END OF THE MARKET IN A SIMILAR MOVE MOLSON BREWERIES CANADA'S NO 1 BREWER SAID IT PLANS TODAY TO LAUNCH ITS LOWPRICE BRAND THE CANADIAN BEER MARKET HAS LONG BEEN PROTECTED FROM US AND OTHER IMPORTS BY STIFF TRADE BARRIERS SOME OF THESE BARRIERS LIKELY WILL FALL ONCE A CURRENT USCANADA BEERTRADE DISPUTE IS RESOLVED SEVERAL US BREWERS INCLUDING STROH BREWERY CO OF DETROIT AND G HEILEMAN BREWING CO LA CROSSE WIS SAID THEY PLAN TO COMPETE IN ONTARIO CANADA'S BIGGEST MARKET BY PRICING THEIR PRODUCTS BELOW DOMESTIC BREWERS LABATT AND MOLSON ALREADY SELLING INTO A SHRINKING MARKET FEAR THAT A SUCCESSFUL PUSH BY US BEER COMPANIES COULD FURTHER ERODE THE DOMESTIC PRODUCERS' MARKET SHARE LABATT LAUNCHED ITS WILDCAT BRAND IN ONTARIO CANADA'S BIGGEST BEER MARKET AT A RETAIL PRICE OF 1250 CANADIAN DOLLARS US977 FOR A 12PACK HIGH BY US STANDARDS THE BRAND COSTS ABOUT 13 LESS THAN LABATT'S MAINSTREAM BEERS AND IS THE LOWEST PRICE THAT CAN BE CHARGED UNDER ONTARIO'S MINIMUM PRICING LAWS 9306180059 930618 SPIRITED CLINTON DEFENDS PERFORMANCE NOTING RECENT SUCCESSES IN CONGRESS BY JEFFREY H BIRNBAUM AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON DELIVERED A SPIRITED AND SOMETIMES LIGHTHEARTED DEFENSE OF HIS FIRST FIVE MONTHS IN OFFICE AND OFFERED AN AMBITIOUS AGENDA FOR THE REST OF THE YEAR AT HIS FIRST EVENING NEWS CONFERENCE THE PRESIDENT HIGHLIGHTED HIS RECENT SPURT OF SUCCESSES IN CONGRESS INCLUDING ACTION IN THE SENATE ON DEFICITREDUCTION AND CAMPAIGNFINANCE OVERHAUL LEGISLATION AND IN BOTH THE HOUSE AND SENATE ON HIS NATIONALSERVICE PROGRAM HE ALSO DECLARED THAT US FORCES ASSISTING THE UNITED NATIONS IN SOMALIA HAD ACCOMPLISHED THEIR TASK THE RUN OF GOOD FORTUNE AFTER A LONG SPELL OF ACKNOWLEDGED DIFFICULTIES CLEARLY PUT THE PRESIDENT AT EASE HE JOKED WITH ONE REPORTER ABOUT HIS MICKEY MOUSE NECKTIE AND WHEN ASKED A QUESTION ABOUT RELATIONS WITH NEW ZEALAND REPLIED I'VE GIVEN ABSOLUTELY NO THOUGHT TO THAT IN ADDITION TO LOOKING BACKWARD WITH PRIDE THE PRESIDENT SAID HE WAS LOOKING FORWARD TO MAKING PROGRESS THIS YEAR ON NEW PROJECTS HE SAID THERE WAS A REAL SHOT AT PASSING A HEALTHCARE OVERHAUL THIS YEAR WHILE SUGGESTING THAT THE LEGISLATION COULD PASS NEXT YEAR IF IT HAS TO LAY OVER HE ALSO SPOKE OPTIMISTICALLY ABOUT APPROVING A WELFARE OVERHAUL THIS YEAR HE CHOSE LAST EVENING TO HOLD THE NEWS CONFERENCE LARGELY BECAUSE THE SENATE FINANCE COMMITTEE WAS ON THE VERGE OF PASSING A VERSION OF HIS DEFICIT REDUCTION BILL JUST A FEW DAYS AGO THE MEASURE SEEMED TO BE IN GREAT TROUBLE BUT THE PRESIDENT WAS CAREFUL NOT TO EMBRACE THE DETAILS OF THE PANEL'S PLAN INSTEAD HE SAID HE WANTED TO WORK WITH A HOUSESENATE CONFERENCE COMMITTEE TO REACH HIS GOALS 500 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS CONSISTING EQUALLY OF SPENDING CUTS AND TAX INCREASES WEIGHTED HEAVILY TOWARD THE RICH NOTABLY MR CLINTON DIDN'T RULE OUT ACCEPTING A GASOLINE TAX LIKE THE ONE IN THE FINANCE COMMITTEE BILL EVEN THOUGH HE SPOKE OUT AGAINST ONE DURING THE CAMPAIGN HE ORIGINALLY PROPOSED A BROADBASED TAX ON ENERGY MR CLINTON SAID COMPLETING A DEFICITCUTTING PLAN IS CENTRAL TO THE CREDIBILITY OF HIS ADMINISTRATION THE ECONOMY IS STILL BAD FOR MOST AMERICANS BUT THE TRENDS ARE GOOD HE SAID THE TRENDS ARE PLAINLY TIED TO THE DETERMINATION OF THIS ADMINISTRATION TO BRING THE DEFICIT DOWN HE PRAISED THE REMARKABLE PROGRESS OF HIS ECONOMIC PLAN IN THE SENATE STILL MR CLINTON SAID HE WOULD INSIST ON CHANGES IN THE FINAL BILL HE SAID HE WANTED TO RETAIN TAX BREAKS DROPPED BY THE SENATE FINANCE COMMITTEE THAT WOULD BENEFIT SMALL BUSINESSES AND COMPANIES THAT LOCATE IN ECONOMICALLY DISTRESSED AREAS HE ALSO SAID HE WOULD DRAW THE LINE AGAINST EFFORTS TO PUT MORE OF THE BURDEN OF DEFICIT REDUCTION ON THE POOR ELDERLY AND WORKING CLASS AND LESS ON THE WEALTHY MR CLINTON GAVE HIGH MARKS TO THE SENATE FOR APPROVING A CAMPAIGNFINANCE PLAN BUT HE DIDN'T EMBRACE ITS DETAILS EITHER HE SAID IT WOULD GO A LONG WAY TOWARD REDUCING THE INFLUENCE OF SPECIAL INTERESTS BUT SAID THE HOUSE WOULD LIKELY PASS A DIFFERENT MEASURE THIS IS ANOTHER BILL WHERE YOU HAVE TO WATCH WHAT COMES OUT OF CONFERENCE HE SAID ON SOMALIA MR CLINTON DECLARED THAT THE UN ATTACK ON WARLORD MOHAMMED FARAH AIDID WAS OVER AND IT WAS A SUCCESS AND HE ADDED IN THIS BATTLE HEROISM KNEW NO FLAG OBVIOUSLY BUOYED BY RECENT EVENTS MR CLINTON ENDED HIS NEWS CONFERENCE ONLY TO RETURN WEARING A MICKEY MOUSE TIE THAT HE GOT FROM THE REPORTER HE HAD TEASED EARLIER HE ALSO TRIED TO MAKE AMENDS WITH THE PRESS CORPS ITSELF WITH WHICH HE HAS BEEN AT ODDS LATELY I KNEW WHEN I CAME HERE THAT THERE WOULD BE THINGS THAT I WOULD NEED TO LEARN ABOUT THE PROCESSES AND THE WAY THINGS WORK HE SAID I BELIEVE NOW THAT IF I DO THE BIG THINGS RIGHT AND DEAL WITH THE BIG ISSUES THAT EVENTUALLY THE OTHER THINGS WILL ALSO WORK THEMSELVES OUT 9306180058 930618 BUSINESS BRIEF TCBY ENTERPRISES INC NET INCOME INCREASED 10 FOR FISCAL SECOND QUARTER TCBY ENTERPRISES INC POSTED A 10 INCREASE IN FISCAL SECONDQUARTER EARNINGS DESPITE A 2 DROP IN REVENUE THE LITTLE ROCK ARK FRANCHISER OF FROZENYOGURT STORES RECORDED NET INCOME OF 27 MILLION OR 11 CENTS A SHARE FOR THE QUARTER ENDED MAY 31 UP FROM 25 MILLION OR 10 CENTS A SHARE IN THE YEARAGO PERIOD REVENUE DECLINED TO 342 MILLION FROM 349 MILLION A YEAR AGO THE COMPANY NOTED THAT SAMESTORE SALES OR SALES AT STORES OPEN FOR AT LEAST A YEAR ALSO DECLINED ABOUT 2 DURING THE QUARTER ALTHOUGH MUCH OF THAT CAME FROM FRANCHISED STORES THE COMPANY SAID THAT SAMESTORE SALES FOR COMPANYOWNED STORES WERE FLAT IN THE PERIOD FRANK D HICKINGBOTHAM CHAIRMAN AND CHIEF EXECUTIVE OFFICER BLAMED THE SALES DECLINE ON BAD WEATHER PARTICULARLY IN MARCH THE COMPANY SAID THAT BY TRIMMING ADMINISTRATIVE AND FOOD COSTS AND BY RUNNING A LEANER MACHINE IT WAS ABLE TO STRENGHTEN ITS EARNINGS IN A WEAKENED ENVIRONMENT TCBY SAID THAT IT ADDED 236 NEW LOCATIONS DURING THE QUARTER ALL BUT 15 IN NONTRADITIONAL LOCATIONS SUCH AS AIRPORTS TRAVEL PLAZAS AND INSTITUTIONAL FOOD SERVICE OPERATIONS THE COMPANY SAID IT EXPECTS TO OPEN 850 TO 910 NONTRADITIONAL LOCATIONS IN FISCAL 1993 9306180057 930618 FDIC VOTES TO MAINTAIN CURRENT PREMIUM LEVELS WASHINGTON THE FEDERAL DEPOSIT INSURANCE CORP DECIDED NOT TO CHANGE THE INSURANCE PREMIUMS FOR BANKS AND THRIFTS THE FDIC'S BOARD OF GOVERNORS VOTED TO MAKE PERMANENT AS OF JAN 1 1994 THE CURRENT PREMIUMS WHICH WERE PUT INTO EFFECT TEMPORARILY IN JANUARY 1993 THE PREMIUMS RANGE FROM 23 CENTS FOR EACH 100 OF DOMESTIC DEPOSITS FOR THE HEALTHIEST INSTITUTIONS TO 31 CENTS FOR THE WEAKEST PREVIOUSLY THE RATE FOR ALL BANKS AND THRIFTS WAS 23 CENTS THE CURRENT LEVEL OF PREMIUMS IS CONSIDERED NECESSARY TO RECAPITALIZE FDIC INSURANCE FUNDS THAT WERE DEPLETED BY BANK AND SAVINGSANDLOAN FAILURES WHEN THE BANK INSURANCE FUND REACHES A PRESCRIBED MINIMUM LEVEL OF 125 OF ALL BANK DEPOSITS PROBABLY IN SEVERAL YEARS THE FDIC IS EXPECTED TO CONSIDER SHARPLY REDUCING PREMIUMS POSSIBLY TO AS LITTLE AS THREE CENTS OR FOUR CENTS FOR EACH 100 IN DEPOSITS RECAPITALIZING THE SEPARATE SAVINGS ASSOCIATION INSURANCE FUND IS MORE COMPLICATED ONE PROBLEM IS THAT THRIFT PREMIUMS ARE REQUIRED BY LAW TO BE USED PARTLY TO PAY INTEREST ON 30YEAR BONDS SOLD IN THE LATE 1980S TO ASSIST IN THE GOVERNMENT'S MASSIVE S&L BAILOUT 9306180056 930618 CORPORATE FOCUS GE'S BOXCARBUYING BINGE IS WORRYING SMALL RAILROADS PLANNED ADDITION OF 4000 TO FLEET WILL BOOST COMPANY'S DOMINANCE IN MARKET BY DANIEL MACHALABA AND AMAL KUMAR NAJ STAFF REPORTERS OF THE WALL STREET JOURNAL WHY IS GENERAL ELECTRIC CO MAKER OF HIGHTECH MOTORS MEDICAL SYSTEMS AND SLEEKLY STYLED APPLIANCES ACCUMULATING TENS OF THOUSANDS OF RUSTING DENTED RAILROAD BOXCARS ACCORDING TO SMALL AND MEDIUMSIZED RAILROADS IT'S TRYING TO CORNER THE MARKET ON AN ESPECIALLY VALUABLE CATEGORY OF BOXCARS BOOST RATES AND STIFFEN RENTAL TERMS GE SAYS THAT IT'S SIMPLY TRYING TO HELP ITS CUSTOMERS BECOME MORE COMPETITIVE GE HAS TAKEN ADVANTAGE OF THE SHRINKING US BOXCAR FLEET NOW 174000 FROM 352000 A DECADE AGO BY BUYING RAIL CONSULTANT DONALD B LITTLEFIELD ESTIMATES GE'S GROWING HOARD OF BOXCARS AT ABOUT 38000 UP 40 IN THE LAST YEAR WHEN GE'S PENDING PURCHASE OF 4000 BOXCARS FROM CHRYSLER CORP IS COMPLETED HE AND OTHERS SAY GE WILL OWN 90 OF A SPECIAL SUBSET OF RAILCARS THOSE EXEMPT FROM FEDERAL RATEREDUCTION ORDERS IF YOU WANT TO LEASE BOXCARS YOU BETTER HAVE GE'S TELEPHONE NUMBER SAYS THOMAS POWER JR CHIEF FINANCIAL OFFICER OF WISCONSIN CENTRAL LTD SAYS FRED SIMPSON EXECUTIVE VICE PRESIDENT OF MONTANA RAIL LINK INC WE ARE CONCERNED THAT GENERAL ELECTRIC IS CORNERING THE MARKET FOR LEASED BOXCARS THE RAILROADS' CONCERNS HAVE REACHED THE US DEPARTMENT OF JUSTICE A SPOKESWOMAN WOULDN'T SAY WHETHER A FORMAL COMPLAINT HAS BEEN FILED BUT ACKNOWLEDGED THAT EITHER THE DEPARTMENT OR THE FEDERAL TRADE COMMISSION LIKELY WILL BE LOOKING INTO COMPLAINTS ON ANTITRUST GROUNDS GE WHICH DECLINES TO DISCLOSE ITS BOXCAR HOLDINGS COUNTERS THAT ITS RAILCAR FLEET AMOUNTS TO ROUGHLY 11 OF THE INDUSTRY'S TOTAL WHICH IS ABOUT 12 MILLION RAILCARS OF ALL TYPES EVERY TIME WE DO A DEAL OR MAKE AN ACQUISITION WE COMPLY WITH ALL LOCAL STATE AND FEDERAL GOVERNMENT AND REGULATORY REQUIREMENTS SAYS A SPOKESMAN GE'S GROWING PRESENCE IN RAILCAR LEASING REFLECTS THE STRATEGY OF ITS POWERFUL FINANCING ARM GE CAPITAL SERVICES TO EXPAND ITS PRIMARY MARKETS RAILCAR LEASING IS PART OF GE CAPITAL'S EQUIPMENT MANAGEMENT BUSINESS WHICH ACCOUNTED FOR 16 OF ITS 1992 NET INCOME OF 15 BILLION GE CAPITAL WHICH HAS 155 BILLION IN ASSETS ALSO LEASES AIRCRAFT AND SHIPPING CONTAINERS AND FINANCES A WIDE RANGE OF CONSUMER AND COMMERCIAL TRANSACTIONS EQUIPMENT LEASING IS MORE LUCRATIVE THAN MOST GE CPITAL BUSINESSES BECAUSE GE ALSO PROFITS BY SERVICING THE LEASED EQUIPMENT AS A RESULT GE CAPITAL'S RETURN ON ASSETS IN EQUIPMENT LEASING RANGE FROM 25 TO 45 COMPARED WITH 15 TO 25 FOR THE REST OF THE UNIT GE CAPITAL ALSO HAS EXPANDED BY CHERRYPICKING DISTRESSED ASSETS IN 1986 IT ACQUIRED 34000 RAILCARS FROM THE BANKRUPT NORTH AMERICAN CAR CORP IN 1989 IT BOUGHT 11000 CARS FROM BRAE CORP AND A YEAR AGO GE CAPITAL DOUBLED ITS OWNED AND MANAGED FLEET TO ABOUT 140000 RAILCARS BY LEASING MOST OF ITEL CORP'S FLEET BEFORE THAT TRANSACTION GE HAD INVESTED NEARLY A BILLION DOLLARS TO INCREASE ITS RAILCAR FLEET MAJOR RAILROADS SUCH AS CONSOLIDATED RAIL CORP AND UNION PACIFIC CORP AREN'T LOSING MUCH SLEEP OVER GE THEY OWN THEIR FLEETS WHICH ACCOUNT FOR OVER 60 OF THE NATION'S BOXCAR TOTAL A GE LOCK ON THE MARKET IS LIKELY TO AFFECT THEM ONLY AT PEAK PERIODS WHEN THEY RENT EXTRA CARS SOME BIG RAILROADS WELCOME GE WHICH HAS THE FINANCIAL RESOURCES TO UPGRADE THE RAILCARS IT LEASES YOU HAVE A PLAYER THAT HAS THE MONEY TO MAINTAIN THE CARS WELL AND PROVIDE A RELIABLE FLEET TO THE RAIL INDUSTRY SAYS RALPH VON DEM HAGEN VICE PRESIDENT CUSTOMER SERVICE OF CONSOLIDATED RAIL BUT SMALLER RAILROADS FEAR THAT THEIR COSTS WOULD RISE IF GE WERE ALLOWED TO INCREASE ITS DOMINANCE IN THE LEASING MARKET SAYS JAMES HUSBAND MANAGER OF SPECIAL PROJECTS AT RL BANKS & ASSOCIATES INC A TRANSPORTATION CONSULTING FIRM SMALL RAILROADS GENERALLY LACK THE DEEP POCKETS TO BUY THEIR OWN EQUIPMENT OR PAY SIGNIFICANTLY HIGHER RENTAL RATES ON THE EQUIPMENT THEY USE HE SAYS EXECUTIVES OF WISCONSIN CENTRAL FOR EXAMPLE SCOURED THE COUNTRY RECENTLY FOR BOXCARS HOPING TO REDUCE THEIR INCREASING DEPENDENCE ON GE WE WANT AN ALTERNATIVE SAYS ROBERT GRINDROD A WISCONSIN CENTRAL ASSISTANT VICE PRESIDENT AFTER CONTACTING MORE THAN 50 ENTITIES INCLUDING RAILROADS BROKERS AND SCRAP YARDS THEY TRACKED DOWN A GROUP OF 243 BOXCARS IN THE MIDWEST BUT WHEN WISCONSIN CENTRAL AND TWO OTHER RAILROADS MADE A JOINT OFFER TO BUY 4000 BOXCARS FROM CHRYSLER GE OUTBID THEM MOST OF THE CARS ARE IN THE GRANDFATHERED CATEGORY NEARLY 30000 CARS BUILT IN THE 1970S AND SET ASIDE IN 1986 BY THE INTERSTATE COMMERCE COMMISSION THE ICC FROZE THEIR PER DIEM RENTAL RATE ABOVE THE MARKET AT 60 TO 80 CENTS A HOUR TO ENSURE A SUPPLY OF BOXCARS TO SMALLER LINES THE REGULATED RENTAL RATE FOR OTHER CARS DECLINES ANNUALLY AS THEY DEPRECIATE AND AVERAGES 34 TO 40 CENTS AN HOUR IN THE LAST SEVEN YEARS GE HAS ACQUIRED RIVAL LESSORS AND A MAJORITY OF THE GRANDFATHERED CARS 75 BY SOME ESTIMATES THE CHRYSLER CARS WOULD BOOST ITS SHARE TO ABOUT 90 SAYS JOHN ROBINSON A SENIOR ASSISTANT VICE PRESIDENT OF THE ASSOCIATION OF AMERICAN RAILROADS THE GRANDFATHERED BOXCARS ARE LIKELY TO BECOME MORE VALUABLE IN 1994 WHEN THE ICC OPENS TO NEGOTIATION THE CHARGES THAT RAILROADS PAY EACH OTHER FOR USE OF NONGRANDFATHERED CARS THE GRANDFATHERED CARS WOULD RETAIN THE HIGH RATES GE IS BUYING THE BOXCARS AS THE MARKET TIGHTENS AFTER YEARS OF SURPLUS CAUSED BY OVERBUILDING IN THE 1970S SOME SHIPPERS PREFER TO MOVE FREIGHT IN BOXCARS WHICH GENERALLY OFFER LOWER RATES THAN TRUCKS OR CONTAINERS EVEN THOUGH SOME RAILROADS HAVE BEGUN TO BUILD OR REFURBISH BOXCARS IT'S LIKELY THAT THE NUMBER OF CARS WILL CONTINUE TO DECLINE THOSE PROSPECTS PROMPTED FOUR BIDDERS TO GO AFTER CHRYSLER'S CARS AMONG THEM THREE RAILROADS REPRESENTED BY RAILROAD FINANCIAL CORP GE WON THE CONTEST BY OFFERING WHAT PEOPLE FAMILIAR WITH THE TRANSACTION SAY WAS ABOUT 60 MILLION THE FOUR FAILED BIDDERS SHARED SIMILAR CONCERNS OUR PAPER BUSINESS HAS BEEN GROWING ABOUT 5 A YEAR AND WE THOUGHT IT WAS A GOOD IDEA TO GET CONTROL OF OUR OWN FLEET RATHER THAN HAVE IT LEASED FROM A DIFFERENT PARTY SAYS DALE PHILLIPS CHIEF FINANCIAL OFFICER OF ILLINOIS CENTRAL RAILROAD CO PART OF THE RAILROAD FINANCIAL GROUP MARK LEVIN A DIRECTOR OF KANSAS CITY SOUTHERN INDUSTRIES INC ALSO IN THE GROUP SAYS GE IS PUTTING TOGETHER CONTROL OVER A LARGE PERCENTAGE OF THE SUPPLY OF BOXCARS IN THE US AND THAT COULD DRIVE THE PRICE UP IN THE SHORT TERM AND GE'S TENACITY SURPRISED THEM ALL WE DIDN'T THINK GE WOULD BE THAT AGGRESSIVE SAYS ANTHONY KRUGLINSKI PRESIDENT OF RAILROAD FINANCIAL THE CHICAGOBASED INVESTMENT BANKING CONCERN THAT ORGANIZED THE RAILROAD BIDDERS GE OUTBID THEIR CUSTOMERS WHEN THEIR CUSTOMERS WERE TRYING TO SEEK AN ALTERNATIVE TO GE 9306180055 930618 ADVERTISING MARKETERS AMBUSH DINOSAURS TRADING ON JURASSIC PARK' HYPE BY LAURA BIRD STAFF REPORTER OF THE WALL STREET JOURNAL MANOR CARE'S CHOICE HOTELS MADE A BIG SPLASH LAST SUMMER WHEN IT SIGNED UP WITH BATMAN RETURNS CASTING THE PENGUIN FROM THE WARNER BROS BLOCKBUSTER IN A SUMMERLONG AD CAMPAIGN THE ADS AND A KIDSSTAYFREE PROMOTION WORKED WELL ENOUGH TO PROMPT CHOICE TO DISCUSS A SIMILAR PROMOTION WITH JURASSIC PARK PRODUCER UNIVERSAL STUDIOS FASTFOWARD TO SUMMER 1993 CHOICE IS RIGHT ON SCHEDULE RIDING HIGH ON DINOSAUR FRENZY BUT IT DECIDED TO PASS ON AN EXPENSIVE OFFICAL JURASSIC PARK TIEIN TO THE MOVIE'S SCARY VELOCIRAPTORS AND BRACHIOSAURUSES CHOICE INSTEAD CREATED ITS OWN CUTESY CHOICEASAURUS TO BE THE STAR OF ITS SUMMER SWEEPSTAKES CAMPAIGN WE'RE DEFINITELY A PART OF THE DINOSAUR NOISE LEVEL SAYS BARRY L SMITH SENIOR VICE PRESIDENT OF MARKETING FOR CHOICE AND MANOR CARE'S SIX OTHER LODGING CHAINS THERE IS A TREMENDOUS DINOSAUR EXPOSURE OUT THERE AND WE WANTED TO BE PART OF THAT ACTION CHOICE IS JUST ONE OF A STAMPEDE OF ADVERTISERS LOOKING TO CASH IN ON THE DINOSAUR FRENZY CREATED BY JURASSIC PARK WITHOUT ACTUALLY PAYING FOR THE PRIVILEGE UNIVERSAL A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC IS ON THE LOOKOUT FOR COUNTERFEITERS TRYING TO RIP OFF ITS CHARACTERS AND HAS EVEN SET UP A TOLLFREE LINE 1800 DINO COP TO SNARE BLATANT COPYCATS BUT THE STUDIO HAS NO OWNERSHIP RIGHTS TO DINOSAUR CHARACTERS IN GENERAL WHICH ARE ARGUABLY PUBLIC DOMAIN MATERIAL SO THANKS TO MADISON AVENUE'S PROFESSIONAL TREND MERCHANTS DINOSAURS ARE BACK FROM EXTINCTION AND MULTIPLYING LIKE RABBITS THROUGH A COMBINATION OF CLEVER PLANNING AND LASTMINUTE INSPIRATION ADVERTISERS ARE CRAMMING STEGOSAURUSES TYRANNOSAURUSES AND ALL MANNER OF PREHISTORIC REPTILES INTO ADS FOR EVERYTHING FROM OFFICE MACHINES TO GROCERY STORES TO THE FILMS OF COMPETING STUDIOS IN OLYMPIC YEARS THEY ARE CALLED AMBUSHERS THE RESOURCEFUL ADVERTISING EXECUTIVES WHO FIGURED OUT HOW TO CASH IN ON THE BIG SPORTS EVENT WHILE SIDESTEPPING THE EXPENSE OF OFFICIAL SPONSORSHIP THIS SUMMER THE BIG JURASSIC AMBUSH IS BEING FUELED WITH TENS OF MILLIONS OF DOLLARS IN MEDIA SPENDING THAT ALL TOLD MAY EXCEED THE OFFICIAL JURASSIC MEDIA BLITZ ABOUT 20 MILLION AMBUSHERS ARE GAMBLING THAT THEIR EFFORTS WILL STAND OUT AMID THE DINO DIN INSTEAD OF MERELY CREATING HYPE THAT ONLY JURASSIC PARK WILL BENEFIT FROM MANOR CARE IS PUTTING 12 MILLION INTO ITS CHOICEASAURUS EFFORT INCLUDING TELEVISION SPOTS IN WHICH THE BEAST EMERGES FROM A SUBWAY STATION AND LUMBERS ACROSS TOWN TO DELIVER 1 MILLION TO GUESTS AT CHOICE OR ONE OF THE OTHER MANOR CARE CHAINS CREATED BY BALTIMORE AGENCY GRAY KIRK/VANSANT TO PROMOTE A SWEEPSTAKES THE ADS EVEN ECHO JURASSIC'S 65 MILLION YEARS IN THE MAKING TAGLINE ASSURING FAMILIES THAT OFFERS LIKE THIS HAPPEN ONCE EVERY 60 MILLION YEARS IN ANTICIPATION OF JURASSIC FEVER ADVERTISERS GALORE ARE FOLLOWING IN CHOICE'S FOOTPRINTS MITA COPYSTAR AMERICA A UNIT OF MITA INDUSTRIAL CO AND AD AGENCY LORD DENTSU & PARTNERS ARE RUNNING A 15 MILLION AD CAMPAIGN STARRING CLAYANIMATED DINOSAURS OF THE WORKPLACE LUCKY STORES AMERICAN STORES INC'S GROCERY CHAIN IN SOUTHERN CALIFORNIA AND GREY ADVERTISING ARE PROMOTING BOX LUNCHES AND COOKIES WITH A LUCKYSAURUS CHARACTER THAT VISITS STORES AND APPEARS ON PACKAGES THERE'S MORE THE ABC TELEVISION NETWORK STARTED PROMOTING ITS SERIES DINOSAURS AS THE JURASSIC PART OF ITS FRIDAY NIGHT LINEUP THE TASTEFUL 15SECOND SPOTS DECLARE THE DINOSAURS IN THE MOVIE JURASSIC PARK' WILL TERRIFY AND AMAZE YOU BUT CAN THEY DO THIS FOLLOWED BY A BURP FROM THE CHARACTER BABY SINCLAIR EVEN THE WALL STREET JOURNAL IS JOINING THE TREND A DINOSAUR APPEARS AT THE TOP OF A COLUMN OF TEXT ADDRESSED TO CORPORATIONS AND LAST FRIDAY THE DAY JURASSIC PARK OPENED NEWS CORP'S TWENTIETH CENTURY FOX DOCTORED ADS FOR THE ACTIONFLICK SENDUP HOT SHOTS PARK DEUX REPLACING THE CHICKEN UNDER ACTOR CHARLIE SHEEN WITH AN ENTIRELY GRATUITOUS JURASSICSTYLE DINOSAUR THE AD EVEN INCLUDED A BLURB FROM A FICTIONAL MAGAZINE SPECIES ILLUSTRATED A HIGHLY EVOLVED COMEDY AS PART OF THE OFFICIAL JURASSIC PARK EFFORT MCDONALD'S CORP IS ADDING A HEFTY 18 MILLION TO 20 MILLION IN ESTIMATED BILLINGS TO PLUG DINOSAUR CUPS AND MEALS ALL IN ALL CHOICE'S MR SMITH FIGURES THAT CLOSE TO 100 MILLION IN DINOSAURRELATED TV ADVERTISING WILL HAVE AIRED BY THE TIME THE CRAZE IS OVER JOINING IN THE PREHISTORIC PANDEMONIUM HE SAYS MAKES YOUR ADS LOOK BIGGER THAN THE DOLLARS YOU'RE SPENDING BUT SOME MARKETING EXPERTS DISAGREE IN THE VIEW OF MARKETING CONSULTANT ALLEN MCCUSKER OF THE CANAAN PARISH GROUP IN NEW CANAAN CONN SOME OF THE JURASSIC AMBUSHES COULD TURN INTO STRATEGIC NEGATIVES IN SOME CASES HE SAYS THE DINOSAUR CONNECTION IS TOO MUCH OF A REACH IN OTHERS HE SAYS THE MOVIE'S SCARINESS COULD ALIENATE KIDDIE CUSTOMERS AND BESIDES HE SAYS WITH EVERYONE REACHING FOR A DINOSAUR UNIVERSAL IS GETTING ITS MOVIE WELL PUBLICIZED FOR FREE CYB YASUMURA DESIGN YOUNG & RUBICAM'S CORPORATE IDENTITY UNIT IS BEING INVESTIGATED BY THE US POSTAL SERVICE'S INSPECTION SERVICE BECAUSE OF THE UNIT'S BILLINGS PRACTICES THE EXACT PURPOSE OF THE INVESTIGATION COULDN'T BE DETERMINED A POSTAL SERVICE SPOKESMAN SAID IT CONCERNED BILLING METHODOLOGY A SPOKESMAN FOR YOUNG & RUBICAM SAID THE UNIT WAS CONDUCTING AN INTERNAL REVIEW OF THE SITUATION IN WHAT APPEARED TO BE A RELATED MOVE THE CHAIRMAN OF THE CYB UNIT MATSUO YASUMURA RETIRED THE AGENCY SAID THE PRESIDENT AND CHIEF OPERATING OFFICER JOY GREENE RESIGNED NEITHER MR YASUMURA NOR MS GREENE COULD BE REACHED FOR COMMENT THE INVESTIGATION COMES DURING A YEAR WHEN YOUNG & RUBICAM'S BIG ACCOUNT WITH THE POSTAL SERVICE IS SET TO GO INTO A PREVIOUSLY SCHEDULED REVIEW UNDER TERMS OF THE AGENCY'S CONTRACT THE POSTAL SERVICE IS ONE OF YOUNG & RUBICAM'S BIGGEST CLIENTS WITH ANNUAL ESTIMATED SPENDING OF 93 MILLION LAST YEAR YOUNG & RUBICAM HAS BEEN TAINTED BY SCANDAL BEFORE THE AGENCY PLEADED GUILTY TO ONE COUNT OF CONSPIRACY IN 1990 TO SETTLE CHARGES THAT IT VIOLATED FEDERAL LAWS TO WIN THE JAMAICAN TOURIST BOARD'S ADVERTISING ACCOUNT AND PAID A 500000 FINE TO END THE CASE TBWA ADVERTISING GANT CORP HAS SELECTED A NEW UNIT OF TBWA ADVERTISING TO HANDLE ITS 2 MILLION MEN'S SPORTSWEAR ACCOUNT THE UNIT IS HEADED BY GRANT CASTLE EXECUTIVE VICE PRESIDENT AND RODNEY UNDERWOOD CREATIVE DIRECTOR ON EDGE USA NETWORK HAS SELECTED AHERN NEW YORK TO HANDLE ITS 2 MILLION CONSUMER ACCOUNT FOR THE SCIFI CHANNEL ON TOP OF THE CHANNEL'S TRADE ACCOUNT WON EARLIER THIS YEAR THE CAMPAIGN WELCOME TO THE EDGE KICKS OFF IN JULY WITH TV PRINT RADIO AND OUTDOOR ADVERTISEMENTS 9306180054 930618 BUSINESS BRIEF AMERICAN INTERNATIONAL GROUP INC COMPANY BUYS AN INTEREST IN CONCERN THAT HELPED IT AMERICAN INTERNATIONAL GROUP INC SAID IN NEW YORK THAT IT ACQUIRED A MINORITY INTEREST IN KROLL ASSOCIATES A CONSULTING AND PRIVATE INVESTIGATION CONCERN THAT HAS HELPED AIG IN WRITING SPECIALRISK INSURANCE POLICIES THE COMPANIES DECLINED TO PROVIDE DETAILS ABOUT THE MINORITY STAKE IN CLOSELY HELD KROLL JULES KROLL KROLL CHIEF EXECUTIVE OFFICER SAID THE AIG INVESTMENT WOULD HELP THE COMPANY EXPAND ITS INTERNATIONAL BUSINESS WHICH REPRESENTS 35 OF KROLL'S REVENUE AND ITS ENVIRONMENTAL PRACTICE AMONG OTHER AREAS KROLL AND AIG HAVE HAD A WORKING RELATIONSHIP FOR FIVE YEARS INCLUDING KROLL'S SERVING AS A CONSULTANT TO AIG'S CLIENTS BUYING KIDNAP EXTORTION AND PRODUCTTAMPERING INSURANCE 9306180053 930618 TECHNOLOGY BRIEF VESTAR INC STOCK FALLS 26 FOLLOWING FDA PANEL'S RULING ON DRUG VESTAR INC SHARES PLUNGED 26 AFTER A FOOD AND DRUG ADMINISTRATION COMMITTEE FAILED TO RECOMMEND THE COMPANY'S DAUNOXOME DRUG AS A TREATMENT FOR KAPOSI'S SARCOMA A FORM OF CANCER THAT AFFLICTS AIDS PATIENTS IN NATIONAL OVERTHECOUNTER TRADING VESTAR CLOSED AT 8125 DOWN 2875 NEARLY 416000 SHARES CHANGED HANDS MORE THAN NINE TIMES THE AVERAGE DAILY VOLUME THE ONCOLOGIC DRUGS ADVISORY COMMITTEE VOTED TO RECOMMEND AGAINST APPROVAL OF DAUNOXOME SAYING THAT DATA WERE INSUFFICIENT TO SHOW BENEFIT TO PATIENTS SUCH RECOMMENDATIONS AREN'T BINDING BUT ARE ALMOST ALWAYS FOLLOWED BY THE FDA THE VOTE DOESN'T MEAN THAT DAUNOXOME IS DEAD AND BURIED SAID MICHAEL E HART VESTAR CHIEF FINANCIAL OFFICER WE BELIEVE IT IS AN EFFECTIVE AND SAFE THERAPY FOR PATIENTS WITH ADVANCED KS AND WE INTEND TO PURSUE APPROVAL IN THE FUTURE VESTAR'S REQUEST FOR APPROVAL OF THE DRUG WAS FILED IN FEBRUARY 9306180052 930618 MARKETING BRIEF ADVO INC KNIGHTRIDDER UNIT IS SUED IN DISPUTE OVER ADVERTISING ADVO INC SAID IT FILED AN ANTITRUST LAWSUIT IN FEDERAL COURT IN PHILADELPHIA AGAINST PHILADELPHIA NEWSPAPERS INC A UNIT OF KNIGHTRIDDER INC AND ITS LOCAL NEWSPAPERS THE PHILADELPHIA INQUIRER AND PHILADELPHIA DAILY NEWS ADVO OF WINDSOR CONN IS A DIRECTMAIL COMPANY THAT COMPETES WITH NEWSPAPERS FOR RETAIL ADVERTISING ADVO SAID ITS SUIT ALLEGES THAT THE INQUIRER USED ILLEGAL PREDATORY AND MONOPOLISTIC TRADE PRACTICES IN AN ATTEMPT TO PUT ADVO OUT OF BUSINESS IN THE PHILADELPHIA MARKET AN ADVO SPOKESMAN SAID THE SUIT SEEKS ACTUAL AND PUNITIVE DAMAGES OF MORE THAN 5 MILLION OFFICIALS OF THE PHILADELPHIA INQUIRER AND KNIGHTRIDDER DECLINED TO COMMENT PENDING REVIEW OF THE COMPLAINT WHICH THEY SAID THEY HADN'T SEEN 9306180051 930618 BUSINESS BRIEF PRICE CO RETAIL OUTLET COMPANY'S NET FELL OVER 40 IN 3RD PERIOD PRICE CO WHICH HAS ANNOUNCED PLANS TO MERGE WITH COMPETITOR COSTCO WHOLESALE CORP KIRKLAND WASH SAID NET INCOME FOR THE THIRD QUARTER ENDED JUNE 6 FELL 402 TO 171 MILLION FROM 285 MILLION A YEAR EARLIER PERSHARE EARNINGS ON A FULLY DILUTED BASIS DROPPED 351 TO 37 CENTS A SHARE FROM 57 CENTS A SHARE SALES WERE 173 BILLION UP 43 FROM 166 BILLION A YEAR EARLIER THE SAN DIEGO CALIF COMPANY CLOSED A WAREHOUSE IN BRITISH COLUMBIA DURING THE QUARTER WHICH REDUCED EARNINGS BY 14 MILLION OR TWO CENTS A SHARE THE YEAREARLIER QUARTER INCLUDED AN 112 MILLION PRETAX GAIN ON THE SALE OF PROPERTIES TO PRICE REIT FOR THE 40 WEEKS ENDED JUNE 6 NET WAS 81 MILLION DOWN 186 FROM 995 MILLION PERSHARE EARNINGS ON A FULLY DILUTED BASIS DROPPED 124 TO 170 FROM 194 A YEAR AGO SALES ROSE 57 TO 595 BILLION COMPARED WITH 563 BILLION A YEAR EARLIER SAMESTORE SALES DROPPED 96 IN THE QUARTER AND 7 FOR THE 40WEEK PERIOD ANALYSTS SAID EARNINGS WERE LOWER THAN EXPECTED THE RETAIL OUTLET COMPANY'S STOCK DROPPED 150 TO 37 IN HEAVY OVERTHECOUNTER TRADING 9306180050 930618 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JUNE 11 ACCOUNTED FOR 10 OR AN AVERAGE 242 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 71 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 463 INVOLVED STOCKINDEX ARBITRAGE UP FROM 20 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 545 OF PROGRAM TRADING WAS EXECUTED BY FIRMS FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 384 WAS FOR THEIR CUSTOMERS AN ADDITIONAL 71 WAS DESIGNATED AS CUSTOMER FACILITATION WHERE FIRMS USE PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF KIDDER PEABODY UBS SECURITIES AND NOMURA SECURITIES EXECUTED ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY DID MOST OF ITS PROGRAM TRADING FOR ITS CUSTOMERS 9306180049 930618 BUSINESS BRIEF ALPINE GROUP INC PURCHASE OF SUPERIOR TELETEC IS SET FOR ABOUT 67 MILLION ALPINE GROUP INC SAID IT ENTERED A DEFINITIVE PACT TO ACQUIRE SUPERIOR TELETEC INC IN A STOCK SWAP THEY BOTH VALUED AT ABOUT 67 MILLION ALPINE GROUP A DEFENSE ELECTRONICS MAKER AND DEVELOPER OF DATACOMMUNICATIONS TECHNOLOGY SAID THAT UNDER THE AGREEMENT SUPERIOR TELETEC SHAREHOLDERS WOULD RECEIVE 065 ALPINE GROUP SHARE FOR EACH SUPERIOR TELETEC SHARE SUPERIOR TELETEC HOLDERS MAY ALSO ELECT TO RECEIVE 250 IN CASH AND 0415 ALPINE COMMON SHARE BOTH RATIOS ARE SUBJECT TO ADJUSTMENTS BASED ON ALPINE'S AVERAGE TRADING PRICE DURING A SPECIFIC PERIOD THE ANNOUNCEMENT WAS MADE AFTER THE CLOSE OF TRADING YESTERDAY BOTH STOCKS ARE LISTED ON THE AMERICAN STOCK EXCHANGE ALPINE GROUP SHARES CLOSED AT 11625 UP 375 CENTS SUPERIOR TELETEC SHARES CLOSED UNCHANGED AT 475 THE COMPANIES SAID THAT WHEN THE MERGER IS COMPLETED JAMES R KANELY 52 YEARS OLD CURRENT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF SUPERIOR TELETEC WILL BE NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF ALPINE GROUP STEVEN S ELBAUM 44 WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ALPINE SUPERIOR TELETEC BASED IN ATLANTA PROVIDES TELECOMMUNICATIONS PRODUCTS SUCH AS COPPER CABLE AND WIRE AND FIBEROPTIC CABLE 9306180048 930618 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 311 30 TO 59 DAYS 312 60 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 317 30 DAYS 320 60 DAYS 322 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 310 ONE MONTH 317 THREE MONTHS 329 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 307 60 DAYS 309 90 DAYS 314 120 DAYS 317 150 DAYS 321 180 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 710 60 DAYS 718 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 710 60 DAYS 720 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 510 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 9306180047 930618 PEACE GAMES AFTER THE COLD WAR RAND REMAKES ITSELF AS A CIVILIAN EXPERT FAMOUS DEFENSE THINK TANK NOW STUDIES DRUG ABUSE SCHOOLS TEEN SEX HABITS BUT THE TRANSITION IS BUMPY BY ROY J HARRIS STAFF REPORTER OF THE WALL STREET JOURNAL SANTA MONICA CALIF IT'S HARDLY ANOTHER PENTAGON PAPERS SCANDAL BUT RAND CORP IS AGAIN MIRED IN CONTROVERSY THE PENTAGON PAPERS SECRET VIETNAM WAR FILES COMPILED BY RAND AND BRIMMING WITH EMBARRASSING DETAILS ABOUT AMERICA'S INVOLVEMENT GOT THE THINK TANK IN TROUBLE WHEN RAND RESEARCHER DANIEL ELLSBERG PHOTOCOPIED AND MADE THEM PUBLIC IN 1971 MANY STILL VIEW THAT INCIDENT AS RAND'S DARKEST DAY AND IT TOOK YEARS FOR RAND TO FULLY REGAIN THE TRUST OF THE DEFENSE DEPARTMENT ITS PRIME CLIENT THE NEW BROUHAHA HOWEVER IS OVER WHAT SOME PARENTS CONSIDER TO BE LURID QUESTIONS RAND ASKED STUDENTS WHILE STUDYING SANTA MONICA HIGH SCHOOL'S CONDOMDISTRIBUTION PROGRAM WHY ARE THEY SUBJECTING OUR STUDENTS TO THIS SORT OF SMUT A PEDIATRICIAN WROTE TO A LOCAL PAPER AFTER RAND PROBED TEENS ABOUT THEIR SEXUAL PRACTICES AND PROCLIVITIES WHY INDEED BECAUSE DEFENSEEXPERT RAND IS REMAKING ITSELF FOR A POSTCOLD WAR WORLD WHEN THE BERLIN WALL CAME CRASHING DOWN IN 1989 80 OF RAND'S REVENUE STEMMED FROM NATIONALSECURITY PROGRAMS NOW RAND IS WORKING TOWARD A 5050 MIX OF MILITARY AND CIVILIAN REVENUE WITHIN FIVE YEARS THE TRANSITION IS SOMETIMES PROVING BUMPY AND A FEW CRITICS AREN'T CONVINCED IT WILL BE SUCCESSFUL BUT RAND LIKE OTHER CONCERNS THAT HAVE RELIED FOR YEARS ON NOWDWINDLING NATIONALDEFENSE BUDGETS HAS LITTLE CHOICE IT'S CERTAINLY THE MOST WRENCHING INTELLECTUAL CHANGE THAT ANY OF THE STRATEGIC AND DEFENSEORIENTED THINK TANKS HAS EVER FACED SAYS JAMES A SMITH WHOSE BOOK THE IDEA BROKERS STUDIES SOME OF AMERICA'S ESTIMATED 1000 RESEARCH INSTITUTIONS IN THE 1980S RAND TYPICALLY HANDLED ANTISOVIET STRATEGIZING FOR THE PENTAGON AMONG OTHER THINGS IT STUDIED POTENTIAL SOVIET TARGETS FOR THE US AIR FORCE TO OBLITERATE IN THE EVENT OF NUCLEAR WAR THESE DAYS THE NONPROFIT THINK TANK INSTEAD HAS BEEN HIRED BY MOSCOW TO HELP WITH THE COMPLETE TRANSFORMATION OF RUSSIAN SOCIETY POLITICS AND ECONOMY RAND IS ALSO TAILORING THE TECHNIQUES IT USES IN ITS WAR GAMES TO THE FIGHT AGAINST DRUG DEALERS IT IS PUTTING NATIONALDEFENSE SPECIALISTS TO WORK STUDYING EDUCATIONAL POLICIES AMONG RECENT RAND PROJECTS ONE QUESTIONED THE BENEFITS OF TOUGH ANTIDRUG LAWS AND ANOTHER FOUND THAT NEARLY 90 OF SUPERFUND SPENDING BY INSURANCE COMPANIES HAS GONE TO LITIGATION RATHER THAN TO WASTESITE CLEANUP EVEN ITS CONTINUING DEFENSE DEPARTMENT WORK HAS A DECIDEDLY NONVIOLENT FACE LATELY RAND IS HELPING DEVELOP THE ADMINISTRATION'S NEW POLICY ON HOMOSEXUALS FOR INSTANCE AND ANALYZING THE SOCIAL IMPLICATIONS OF SHRINKING THE ARMED FORCES WHILE THE RAND NAME STILL COMMANDS RESPECT SOME CRITICS SCOFF AT THE THINK TANK'S ATTEMPT TO REPACKAGE ITSELF AS AN EXPERT ON THINGS LIKE SCHOOLS AND DRUG ABUSE IT'S HARD TO SAY THAT THE STUDY OF STATE AND LOCAL GOVERNMENT SHOULD BE DIRECTED BY SOMEONE WHO WAS A KREMLINOLOGIST LAST YEAR SNIFFS R KENT WEAVER A BROOKINGS INSTITUTION SENIOR FELLOW WHO HAS WRITTEN ON THE RECENT EXPLOSION IN THE NUMBER OF THINK TANKS MANY WITH BETTER CREDENTIALS IN CERTAIN CIVILIAN AREAS THAN RAND HAS SOME GLITCHES HAVE ALREADY MARRED RAND'S WAY A YEAR AGO IT PLUCKED OUT SIX OF ITS NATIONALSECURITY EXPERTS AND PUT THEM TO WORK STUDYING AMERICAN EDUCATION THE PLAN FIZZLED ASIDE FROM SUFFERING FROM A LACK OF EXPERIENCE THE RESEARCHERS SOMETIMES FELT DAUNTED BY THE COMPLEXITY OF CIVILIAN EDUCATION WHICH UNLIKE THE MILITARY HAS NO SINGLE COMMANDERINCHIEF SAYS NATIONALSECURITY EXPERT MICHAEL RICH WHO AS RAND'S NO 2 EXECUTIVE IS HELPING LEAD DIVERSIFICATION EFFORTS THESE DAYS ALL SIX ARE BACK ON THE DEFENSE SIDE RAND MR RICH CONCEDES MUST NOW TURN INCREASINGLY TO OUTSIDE HIRING FOR ITS EDUCATIONPOLICY PROJECTS NOR CAN THE NONMILITARY CLIENTS RAND IS WOOING ALWAYS AFFORD ITS PRICEY RESEARCH LAST FALL A MIAMI ANTIDRUG GROUP COMMISSIONED RAND TO MOUNT ITS FIRST CIVILIAN WAR GAME IN A BID TO ADDRESS MIAMI'S DRUG PROBLEM FOR THE MIAMI GAME RAND CREATED A FICTITIOUS CITY CALLED NEW ELSINORE AND ASSIGNED ROLES TO VARIOUS FLORIDA OFFICIALS WHO WERE ASKED TO REACT TO THE HYPOTHETICAL KILLING OF AN INNOCENT BOY CAGHT IN CROSSFIRE BETWEEN DRUG DEALERS AND THE POLICE JANET RENO THEN FLORIDA STATE ATTORNEY PLAYED A COURT OFFICIAL DEPENDING ON THE DECISIONS MADE RAND'S COMPUTERS SPEWED OUT THE CONSEQUENCES A CRACKDOWN ON DEALERS FOR EXAMPLE WOULD LEAD TO PRISON OVERCROWDING PLAYERS STARTED OUT TRYING ALL THE THINGS WE'D ALREADY TRIED SAYS MARILYN CULP HEAD OF THE MIAMI COALITION FOR A DRUGFREE COMMUNITY BY THE THIRD DAY SHE SAYS NEW APPROACHES EMERGED INCLUDING AN UNUSUAL STRATEGY FOR IMMERSING POLICE OFFICERS IN THE COMMUNITY IT NOW HAS BEEN ADAPTED FOR MIAMI'S HIGHCRIME SCOTT CARVER HOUSING PROJECT FOR RAND THE PROJECT WAS A ROUSING SUCCESS ALL THE MORE SO BECAUSE IT WAS LED IN PART BY WILLIAM SCHWABE A VETERAN MILITARY ANALYST WHO SPENT YEARS CREATING GAMES TO STUDY FAROFF LANDS LIKE NORTH KOREA BILL IS ONE OF THE PEOPLE WE'RE DOMESTICATING CHUCKLES JAMES KAHAN A PSYCHOLOGIST AND RAND CIVILIAN EXPERT WHO WORKED WITH HIM YET NO OTHER CITIES HAVE SIGNED ON THE DRUG GAME'S 80000 PRICE TAG WHILE MERE POCKET CHANGE COMPARED WITH MULTIMILLIONDOLLAR DEFENSE BUDGETS IS SIMPLY TOO STEEP FOR CASHSTRAPPED CIVIC GROUPS AND LOCAL GOVERNMENTS EVEN IN THE BEST OF ALL WORLDS SAY COMPETITORS RAND MAY BE JUST TOO FAR REMOVED FROM THE WASHINGTON POWER CENTER TO BECOME A FORCE IN SOCIAL POLICIES THE REMOTENESS OF RAND'S GRAYGREEN 300000SQUAREFOOT HEADQUARTERS COMPLEX JUST ACROSS OCEAN AVENUE FROM THE SANTA MONICA PIER HAMPERS ITS ABILITY TO COMPETE ON HEALTHCARE POLICY WORK AND OTHER VERY HOT ISSUES WITH VERY NARROW WINDOWS CONTENDS BROOKINGS'S DR WEAVER RAND EXECUTIVES INSIST THE MOVE TOWARD CIVILIAN RESEARCH IS AN EASY AND NATURAL ONE THEY NOTE THAT THE 30 MILLION IN ANNUAL REVENUE RAND GETS FROM NONMILITARY PROJECTS 30 OF ITS TOTAL REVENUE ACTUALLY RANKS IT AHEAD OF MANY ORGANIZATIONS BETTER KNOWN FOR CIVILIAN POLICY RESEARCH INCLUDING THE URBAN INSTITUTE THE AMERICAN ENTERPRISE INSTITUTE AND EVEN BROOKINGS ITSELF RAND'S WELLKNOWN PENTAGON TIES MAKE IT EASY TO UNDERESTIMATE THE MAGNITUDE OF ITS STANCE IN NONDEFENSE SAYS DONALD B RICE RAND'S PRESIDENT FOR 17 YEARS BEFORE BECOMING AIR FORCE SECRETARY IN 1989 INDEED IN 1979 JUST BEFORE THE REAGAN ADMINISTRATION PUMPED UP DEFENSE SPENDING 50 OF RAND'S REVENUE DERIVED FROM NONMILITARY WORK RAND IS ALSO COUNTING ON THE CLINTON ADMINISTRATION'S INTEREST IN HEALTH CARE AND EDUCATION BOTH TRADITIONAL RAND STRONGHOLDS TO MAKE THE NEW CIVILIANORIENTED STRATEGY PAY OFF MY PLANNING SCENARIO WHICH A YEAR AGO WAS FLAT NOW IS FOR MODERATE GROWTH FROM LAST YEAR'S 100 MILLION REVENUE BASE SAYS RAND PRESIDENT JAMES THOMSON LAST YEAR SOME 77 MILLION OF REVENUE CAME FROM GOVERNMENT GRANTS WITH THE REST CONTRIBUTED BY FOUNDATIONS AND OTHER PRIVATE SOURCES WHEN DR THOMSON LOOKS AT RAND'S FUTURE HE SEES MORE PROJECTS LIKE ITS BROADBASED ANALYSIS OF AMERICAN SCHOOLING WHICH IS SUPPORTED BY A FIVEYEAR 10 MILLION GRANT FROM THE LILLY ENDOWMENT OF INDIANAPOLIS UNLIKE MOST RESEARCHERS THEY CAME TO US WITH A PROPOSAL THAT HAD A MOST HOLISTIC APPROACH TO EDUCATION EXPLAINS LILLY ENDOWMENT PRESIDENT JOHN MUTZ FOR THE WIDERANGING STUDY LILLY HAD IN MIND RAND WAS A LOGICAL CHOICE MR MUTZ SAYS IN PART BECAUSE OF ITS FAMOUS PENTAGON BIGPICTURE STUDIES RAND ALSO BEAT OUT DOZENS OF THINK TANKS AND UNIVERSITIES SEEKING TO MANAGE THE NEW US CRITICAL TECHNOLOGIES INSTITUTE KNOWN AS CTI IT IS A FEDERALLY FUNDED RESEARCH CENTER STUDYING FUTURE TECHNOLOGIES REPORTING DIRECTLY TO THE PRESIDENT'S SCIENCE ADVISERS WITH CTI'S 66 MILLION TWOYEAR BUDGET ALSO COMES THE PROSPECT OF BOOSTING THE 100PERSON RAND WASHINGTON STAFF BY A THIRD THIS YEAR AS IT REFOCUSES ITS STRATEGY RAND IS SEEKING A HIGHER PROFILE UNTIL RECENTLY IT WAS FAIRLY PUBLICITYSHY A LEGACY OF TWO DECADES WHEN NEARLY ALL WORK WAS DEFENSERELATED AND OFTEN CLASSIFIED RAND AN ACRONYM FOR RESEARCH AND DEVELOPMENT WAS FOUNDED IN 1946 AS A CAPTIVE AIR FORCE ARM TO KEEP ALIVE THE RESEARCH WORK BEGUN DURING WORLD WAR II ITS FIRST REPORT PRELIMINARY DESIGN OF AN EXPERIMENTAL WORLDCIRCLING SPACESHIP PRECEDED BY 11 YEARS THE RUSSIAN SPUTNIK WHICH LOOKED UNCANNILY LIKE WHAT RAND HAD DESCRIBED THESE DAYS RAND OFFERS EXECUTIVE SEMINARS TO EXPOSE POTENTIAL CORPORATE AND FOUNDATION CONTRIBUTORS TO ITS WORK IT IS EVEN LIVENING UP ITS SOMBER RESEARCH BRIEFINGS WITH FLASHIER GRAPHICS AND CATCHIER TITLES IT RESORTED TO PUNS IN A RECENT REPORT TWO SHADES OF GREEN ON HOW THE ARMY COULD ALLEVIATE ENVIRONMENTAL PROBLEMS ON MILITARY BASES STILL RAND'S DRY AND COLORLESS IMAGE COULD WORK AGAINST IT AS IT TRIES TO REPOSITION ITSELF AS AN ARBITER OF SOCIAL TRENDS A THINLY VEILED REFERENCE TO RAND IN THE 1964 BLACK COMEDY DR STRANGELOVE THE BLAND CORPORATION COLDLY PERFORMS A COSTBENEFIT ANALYSIS FOR A DOOMSDAY DEVICE THAT WOULD WIPE OUT ALL LIFE ON THE PLANET STILL ELICITS WINCES HERE EVEN RAND'S GRAPHIC HIGHSCHOOL SEX SURVEY WHICH HAS CAUSED SUCH AN UPROAR PROVOKED LOS ANGELES TIMES COLUMNIST AL MARTINEZ TO JOKE YOU'D HAVE TO BE A JOURNEYMAN PERVERT TO BE AROUSED BY ANYTHING RAND PUBLISHES THE SURVEY WAS PART OF AN 18MONTH STUDY OF HOW THE EASY AVAILABILITY OF CONDOMS AFFECTS SEXUAL HABITS THOUGH RESULTS AREN'T OUT YET AMONG THE QUESTIONS RAND ASKED IN ITS TYPICALLY EFFICIENT WAY WERE SEVERAL ABOUT UNCONVENTIONAL SEXUAL PRACTICES SEEING SEXUAL BEHAVIORS DESCRIBED IN PRINT CAN BE UNSETTLING ESPECIALLY IF PARENTS THINK THEIR TEENAGERS DON'T KNOW ABOUT SUCH THINGS RAND EXECUTIVES WROTE IN A LOCAL NEWSPAPER BUT THEY DO KNOW THOUGH THE SUBJECT MATTER RAND IS STUDYING MAY HAVE CHANGED THE THINK TANK'S CAUTIOUS SERIOUS CULTURE REMAINS THE SAME UNLIKE COMPETITORS RAND STILL DOESN'T ALLOW CORPORATIONS TO RETAIN IT AS A HIRED GUN ITS RESEARCH HALLMARK REMAINS SYSTEMS ANALYSIS AN APPROACH THAT COORDINATES SCHOLARS FROM MANY FIELDS IN EXAMINING TOPICS EXHAUSTIVELY AND WEIGHING COUNTLESS POLICY OPTIONS BUT ITS SWING AWAY FROM DEFENSE WORK CAN BE JARRING ESPECIALLY FOR SENIOR DEFENSE ANALYSTS WHO OFTEN MUST TAKE A GIANT STEP BACKWARD AND BECOME RELATIVELY JUNIOR TEAM MEMBERS WHEN TURNING TO NEW FIELDS LIKE EDUCATION NOR IS THAT CIVILIAN WORK ALWAYS AS SATISFYING FOR RESEARCHERS REARED ON THE EXCITEMENT OF SOVIET INTRIGUE DURING THE COLD WAR YOU REALLY HAD A FEELING YOU WERE PROTECTING THE COUNTRY SAYS STEPHEN DREZNER A RAND VICE PRESIDENT NEW RESEARCH GEARED TO MAKING THE QUALITY OF LIFE BETTER IS REWARDING HE SAYS BUT NOT AT THE SAME LEVEL 9306180046 930618 BOEING PLANS SAFETY CHANGES ON ITS 747 JETS WORK INVOLVES CONNECTORS SUSPECTED IN 2 CRASHES AIRLINES TO SHARE COST BY JEFF COLE STAFF REPORTER OF THE WALL STREET JOURNAL BOEING CO PLANS A CHANGE IN THE FIXTURES THAT JOIN ENGINES TO ITS 747 JUMBO JETS TO REINFORCE CONNECTOR PARTS SUSPECTED OF CAUSING TWO FATAL CRASHES IN THE PAST 18 MONTHS THE COST OF THE MODIFICATION WHICH EXPERTS SUGGEST COULD EASILY TOP 100 MILLION WOULD BE SHARED BY BOEING AND 82 AIRLINES WORLDWIDE THAT OPERATE THE 948 HUGE JETS NOW IN SERVICE SEATTLEBASED BOEING WHICH IS EXPECTED TO ANNOUNCE ITS RECOMMENDATION TODAY WOULDN'T SAY WHAT THE TOTAL COMPANY COST WOULD BE FOR DESIGNING AND MAKING THE NEW PARTS AND HAVING THEM INSTALLED ON JETLINERS BOEING PLANS TO GIVE THE AIRLINES THE NEW PARTS AT NO CHARGE IT'S A BIG NUMBER SAID JAMES JOHNSON COMMERCIAL AIRPLANE UNIT VICE PRESIDENT IN CHARGE OF 747 PRODUCTION ALTHOUGH HE ADDED THAT IT IS NOT MATERIAL AND WON'T RESULT IN A WRITEOFF OR ADJUSTMENT TO REPORTED EARNINGS THE FAILURE OF CRACKED OR CORRODED FUSE PINS SMALL PARTS THAT HELP ATTACH THE FOUR ENGINES BENEATH A 747'S WINGS IS SUSPECTED IN THE CRASH OF AN EL AL FREIGHTER LAST FALL IN AMSTERDAM FIFTY PEOPLE WERE KILLED WHEN AN ENGINE SEPARATED FROM A WING AND SHEARED OFF THE ADJACENT ENGINE AND THE PLANE PLUNGED INTO AN APARTMENT COMPLEX FUSE PINS ALSO ARE SUSPECTED IN THE DECEMBER 1991 CRASH THAT KILLED FIVE CREW MEMBERS OF A CHINA AIRLINES 747 FREIGHTER THE OFFICIAL CAUSE HASN'T YET BEEN DETERMINED IN EITHER CRASH BOEING IS EXPECTED TO ANNOUNCE TODAY THAT IT IS DESIGNING A NEW FAILSAFE PART THAT WILL FIT INTO THE STRUCTURES THAT ATTACH THE ENGINES TO THE WINGS THE DESIGN IS INTENDED TO ENSURE THAT THE ENGINE STAYS UNDER THE WING UNDER HEAVY STRESS EVEN WHEN OTHER ATTACHMENT DEVICES FAIL HOWEVER THE PARTS MUST STILL ALLOW THE ENGINE TO BREAK AWAY WITHOUT DAMAGING THE WING WHEN THE ENGINE FAILS UNDER CERTAIN CONDITIONS THE COMPANY ALREADY HAS REDESIGNED THE FUSE PINS TO PROVIDE GREATER STRENGTH AND ENDURANCE BOEING'S LATEST PLANS ALSO CALL FOR REPLACING THE PARTS THAT HOLD THE PINS IN PLACE SOME OF THE NEW PARTS WILL BE MADE OF STAINLESS STEEL WHICH WASN'T AVAILABLE FOR THESE APPLICATIONS WHEN THE PLANE WAS FIRST DESIGNED 30 YEARS AGO MR JOHNSON SAID IN AN INTERVIEW THAT THE COMPANY ISN'T ADMITTING TO ANY DESIGN FLAWS BY ITS ACTION BUT RATHER IS VOLUNTARILY PUTTING IMPROVEMENTS IN PLACE TO MAKE SAFE PLANES SAFER WE FEEL THAT THIS IS THE PRUDENT THING TO DO HE SAID THE FEDERAL AVIATION ADMINISTRATION HAS ISSUED MORE THAN 10 DIRECTIVES CALLING FOR INSPECTION OR REPLACEMENT OF VARIOUS PARTS THAT HELP HOLD THE ENGINES TO THE WINGS SINCE THE FIRST OF THE TWO 747 CRASHES THE COMBINATION OF FIXES RECOMMENDED BY BOEING WOULD ELIMINATE THE NEED FOR THOSE INSPECTIONS BOEING AND FAA OFFICIALS SAID THOMAS MCSWEENY THE FAA'S ACTING DIRECTOR OF AIRCRAFT CERTIFICATION ACKNOWLEDGED BEING BRIEFED THIS WEEK BY BOEING ON ITS PLANS TO CALL FOR THE NEW PARTS HE SAID THE AGENCY HAS BEEN FOLLOWING BOEING'S STUDIES OF THE PROBLEM AND GENERALLY BELIEVES THE RECOMMENDED ACTION IS APPROPRIATE IN STUDYING BOEING'S PLAN DURING THE MONTHS AHEAD THE FAA WILL HAVE TO DECIDE WHETHER TO ALLOW THE MODIFICATIONS TO BE MADE IMMEDIATELY OR DURING THE ROUTINE GROUNDINGS WHEN MAINTENANCE CREWS PERFORM OVERHAULS AND CHECKS YOU'RE TALKING BIG BUCKS IF YOU HAVE TO PUT THAT AIRPLANE ON THE GROUND FOR A DAY HE SAID CONFIRMING BOEING ESTIMATES THAT THE CHANGES WILL TAKE ABOUT TWO WEEKS FOR EACH AIRCRAFT 9306180045 930618 HEALTH OTHER INSTANCES OF DEADLY VIRUS OCCUR GLOBALLY BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL THE DEADLY RESPIRATORY VIRUS THAT HAS INVADED THE SOUTHWEST US SO FAR AFFLICTING 26 PEOPLE AND KILLING 16 IS PART OF A LITTLEKNOWN WORLDWIDE FAMILY OF RODENTBORNE VIRUSES FOUND FROM SEOUL TO BALTIMORE RELATIVES OF THE SOUTHWESTERN VIRUS KILLED US SOLIDERS DURING THE KOREAN WAR AND PRELIMINARY STUDIES HAVE LINKED YET ANOTHER VIRAL COUSIN WITH CHRONIC HYPERTENSION AMONG INNERCITY RESIDENTS LIVING IN RODENTINFESTED QUARTERS THE NEW VIRUS WHICH FIRST HIT NAVAJO INDIANS NOW HAS EXPANDED TO AFFLICT ANGLO AND HISPANIC VICTIMS IN THE FOUR CORNERS REGION WHERE THE STATES OF ARIZONA NEW MEXICO UTAH AND COLORADO CONVERGE THE CENTERS FOR DISEASE CONTROL AND PREVENTION IN ATLANTA HAS SO FAR IDENTIFIED THE MICROBE AS A MEMBER OF THE HANTAVIRUS FAMILY A GROUP OF VIRUSES FIRST IDENTIFIED IN ASIA AND RESPONSIBLE FOR HEMORRHAGE FEVER AND KIDNEY FAILURE BUT THE SOUTHWESTERN US VARIANT SO FAR UNNAMED IS DIFFERENT MARKED BY THE BRUTALLY SWIFT ONSET OF FEVER COUGH AND MUSCLE ACHES THE ILLNESS IS FOLLOWED BY RESPIRATORY COLLAPSE AND DEATH IN HALF OF CONFIRMED CASES SO FAR THEY'RE DYING OF ACUTE RESPIRATORY FAILURE AND IT IS VERY RAPID I MEAN WITHIN HOURS SAID A CDC SPOKESMAN THE SUSPECTED SOURCE IS A LOCAL DEER MOUSE WHICH EXCRETES THE VIRUS IN ITS DROPPINGS AND URINE DRY EXCRETION THEN MAY BE INHALED AS AIRBORNE PARTICLES THE CDC SPOKESMAN SAID THERE IS NO SUGGESTION OF PERSONTOPERSON TRANSMISSION THE SPOKESMAN SAID SO FAR RESEARCHERS HAVE FOUND ANTIBODIES AGAINST HANTAVIRUS IN BLOOD SAMPLES OF SEVEN PATIENTS AND IN SAMPLES FROM 12 MICE TAKEN FROM THE AREA THERE IS NO CURE BUT SOME PATIENTS ARE RECEIVING EXPERIMENTAL TREATMENT WITH THE ANTIVIRAL DRUG RIBAVIRAN ON A CASEBYCASE BASIS MANUFACTURED BY ICN PHARMACEUTICALS INC OF NEWPORT BEACH CALIF RIBAVIRAN IS ONLY APPROVED IN THE US FOR TREATMENT OF RESPIRATORY SYNCYTIAL VIRUS A LUNG INFECTION OF INFANTS PETERSON ZAH PRESIDENT OF THE NAVAJO NATION YESTERDAY DENOUNCED CHARACTERIZATION OF THE AILMENT AS NAVAJO PLAGUE AND THE CDC SPOKESMAN ADDED THAT ANY EFFORT TO TAG THE AILMENT AS AN INDIAN DISEASE IS BOTH CULTURALLY AND SCIENTIFICALLY INCORRECT THIS IS AN EQUAL OPPORTUNITY DISEASE THE SUDDEN APPEARANCE OF A HANTAVIRUS IN THE STARK SOUTHWESTERN LANDSCAPE WASN'T A TOTAL SURPRISE TO EPIDEMIC TRACKERS WHO NOTE ANIMALBORNE VIRUSES CAN LIE QUIET FOR MANY YEARS UNTIL DISRUPTED BY CHANGES IN WORLD TRADE ECOLOGY OR THE ENVIRONMENT RESIDENTS OF THE SOUTHWEST REPORTED A RAINY WINTER AND AN ABUNDANCE OF PINE NUTS HAD NOURISHED A RESURGENCE OF MICE AND OTHER RODENTS IN THE REGION LAST YEAR A REPORT ON EMERGING INFECTIONS BY THE NATIONAL ACADEMY OF SCIENCES' INSTITUTE OF MEDICINE CITED INTERNATIONAL COMMERCE AND THE TRANSPORT OF CONTAMINATED LABORATORY ANIMALS FOR THE WORLDWIDE SPREAD OF HANTAVIRUSES THIS YEAR IN HIS BOOK EMERGING VIRUSES ROCKEFELLER UNIVERSITY SCIENTIST STEPHEN MORSE EXPLORED THE FARFLUNG MOVEMENTS OF THE NASTY AND PROLIFIC VIRUS FAMILY THE FOUNDING MEMBER OF THE HANTAVIRUS FAMILY IS KNOWN AS HANTAAN VIRUS A MOUSEBORNE MICROBE THAT INFLICTS HEMORRHAGIC FEVER AND KIDNEY DISEASE THROUGHOUT ASIA A RELATED STRAIN KNOWN AS SEOUL VIRUS RESIDES AMONG URBAN RATS IT AFFLICTED MORE THAN 3000 US AND UNITED NATIONS TROOPS DURING THE KOREAN WAR KILLING ABOUT 10 OF ITS VICTIMS SAID DR MORSE IT ISN'T KNOWN WHY THE SOUTHWESTERN STRAIN KILLING OVER HALF ITS VICTIMS IS SO MUCH MORE LETHAL THAN THE SEOUL VIRUS STILL OTHER CLOSE KIN INCLUDE THE PUUMALA VIRUS FOUND IN SCANDINAVIA RUSSIA AND WESTERN EUROPE A MEDITERRANEAN RELATIVE CALLED THE PIROGLIA VIRUS IS FOUND IN GREECE AND THE FORMER YUGOSLAVIA IN THE MIDDLE ATLANTIC STATES A MILDER MEMBER OF THE HANTAVIRUS CLAN KNOWN AS PROSPECT HILL VIRUS RESIDES AMONG MICE IN PENNSYLVANIA AND MARYLAND BUT ISN'T LINKED WITH ANY HUMAN ILLNESS HOWEVER IN BALTIMORE AND PHILADELPHIA URBAN RATS HAVE BEEN FOUND TO HARBOR A VIRUS MUCH LIKE THE SEOUL VIRUS THAT AFFLICTED KOREAN WAR TROOPS AND INITIAL STUDIES IMPLICATE IT IN HUMAN ILLNESS THE LIKELIHOOD IS THAT THE BALTIMORE RAT VIRUS CAME TO AMERICA IN SHIPBOARD RATS FROM ASIA DR MORSE SAID IN AN INTERVIEW JUST THE SAME AS BUBONIC PLAGUE CAME TO EUROPE FROM ASIA IN A PROVOCATIVE EARLY STUDY JAMES LEDUC AND HIS COLLEAGUES CONDUCTED RESEARCH LOOKING AT INNERCITY RATS AND THE BALTIMORE RESIDENTS WHO LIVE IN CLOSE PROXIMITY WITH THEM DR LEDUC NOW WITH THE WORLD HEALTH ORGANIZATION IN GENEVA REPORTED HE ISOLATED HANTAVIRUS STRAINS FROM THE RATS AND ANTIBODIES AGAINST THE VIRUS FROM THE BLOOD OF PATIENTS AT JOHNS HOPKINS HOSPITAL WHILE NO SUDDEN OR ACUTE DISEASE WAS DOCUMENTED IN SUCH ANTIBODYPOSITIVE PATIENTS DR LEDUC REPORTED THAT MANY OF THEM HAD SUFFERED FROM CHRONIC HIGH BLOOD PRESSURE AND KIDNEY DISEASE COULD HANTAVIRAL INFECTIONS ACCOUNT FOR A PORTION OF THE CHRONIC RENAL KIDNEY DISEASE AND HYPERTENSION SO WELL KNOWN AMONG INNERCITY POPULATIONS HE ASKED CLEARLY THERE IS MUCH MORE TO BE DONE BEFORE THE QUESTION CAN BE ANSWERED DEFINITIVELY ROCKEFELLER'S DR MORSE SAID THE AMERICAN HANTAVIRUS OUTBREAK UNDERSCORES WHAT THE INSTITUTE OF MEDICINE REPORT SAYS THAT WE HAVE TO HAVE GOOD SYSTEMS TO IDENTIFY AND PROTECT AGAINST SUCH INFECTIONS WHEN THEY FIRST APPEAR EARLY WARNING SYSTEMS BECAUSE THESE THINGS CAN HAPPEN AT ANY TIME 9306180044 930618 THE TAX PACKAGE ADVANCES DEFICIT PLAN APPEARS LIKELY TO PASS SENATE PANEL EXPECTED TO COMPLETE WORK TODAY BUT BATTLE LOOMS IN CONFERENCE BY JACKIE CALMES AND DAVID ROGERS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S ECONOMIC PROGRAM AS REWORKED BY DEMOCRATS ON THE SENATE FINANCE COMMITTEE APPEARS HEADED FOR SPEEDY PASSAGE BY THE SENATE THE FINANCE COMMITTEE BROKE UP LAST NIGHT WITHOUT COMPLETING ACTION ON THE PLAN BUT LAWMAKERS EXPECT THE PANEL TO PASS THE BILL TODAY WITH THE 11 DEMOCRATS OUTVOTING THE NINE REPUBLICANS SENDING IT TO THE SENATE FLOOR INDICATIONS YESTERDAY WERE THAT DESPITE GROUSING BY LIBERALS THE PACKAGE WOULD PROBABLY CLEAR THE SENATE ON A PARTYLINE VOTE BEFORE THE END OF THE MONTH THEN THE TROUBLE BEGINS IN THE HOUSESENATE CONFERENCE COMMITTEE LIBERALS IN THE HOUSE AND SENATE ARE BEING ASSURED BY THEIR PARTY LEADERS AND THE CLINTON ADMINISTRATION THAT OBJECTIONABLE PIECES OF THE FINANCE PANEL'S BILL ULTIMATELY WILL BE REVISED IN CONFERENCE THIS SUMMER BUT SATISFYING THE LIBERALS KEEPING FAITH WITH CHANGES MADE FOR CONSERVATIVES AND STILL REACHING MR CLINTON'S GOAL OF 500 BILLION IN DEFICIT REDUCTION OVER FIVE YEARS WILL MAKE FOR ONE OF THE MOST DIFFICULT BARGAINING SESSIONS EVER THIS THING HAS A LOT OF CONFLICTS IN IT HOUSE MAJORITY LEADER RICHARD GEPHARDT OF MISSOURI SAID LAST NIGHT MR CLINTON LAST NIGHT SAID HE EXPECTS THE PLAN TO BE ENACTED AND DESCRIBED IT AS THE MOST PROGRESSIVE THIS CITY HAS SEEN IN DECADES HE CAREFULLY AVOIDED EITHER ENDORSING OR CRITICIZING THE SPECIFIC ELEMENTS OF THE SENATE BILL BUT HE VOWED TO PRESS FOR TWO PROPOSALS THAT FINANCE COMMITTEE DEMOCRATS ARE PREPARED TO CUT THE FULL EARNEDINCOME TAX CREDIT FOR THE WORKING POOR THAT HE PROPOSED AND THE CREATION OF EMPOWERMENT ZONES IN DEPRESSED URBAN AND RURAL AREAS HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL WHO WILL LEAD HOUSE NEGOTIATORS SAID I THINK WE CAN COME UP WITH A BILL WHITE HOUSE BUDGET DIRECTOR LEON PANETTA SAID THE ADMINISTRATION STILL PREFERS ITS ORIGINAL ENERGY TAX AND WILL TRY TO BROADEN THE TAX IN THE CONFERENCE ONE OPTION IS TO COUPLE THE SENATE DEMOCRATS' ALTERNATIVE OF A TRANSPORTATIONFUEL TAX WITH A NEW LEVY ON RESIDENTIAL AND COMMERCIAL UTILITY BILLS CHAIRMAN ROSTENKOWSKI SAID HE EXPECTS A LITTLE BIT OF BOTH BUT ALSO SUGGESTS THE CONFEREES WOULD NEED EVEN MORE REVENUE TO PUT A DEAL TOGETHER SENATE DEMOCRATIC LEADERS WENT TO WORK IMMEDIATELY TO REASSURE RESTIVE LIBERALS THERE CONVENING A PARTY CAUCUS WEDNESDAY NIGHT JUST AFTER FINANCE COMMITTEE DEMOCRATS TENTATIVELY AGREED ON A PACKAGE OF TAX INCREASES AND SPENDING CUTS THE OUTREACH TO OTHER DEMOCRATS LED BY MAJORITY LEADER GEORGE MITCHELL OF MAINE AND COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY SEEMS TO HAVE BORNE FRUIT MASSACHUSETTS SEN EDWARD KENNEDY FOR ONE PRAISED THE TAX CHANGES YOU'VE GOT A PROGRESSIVE TAX STRUCTURE AND THEY'VE ELIMINATED SOME OF THE LOOPHOLES HE SAID OTHER LIBERALS SWALLOWED THEIR DISMAY ABOUT PROPOSALS TO CUT PROJECTED SPENDING FOR MEDICARE BEYOND MR CLINTON'S REDUCTIONS OF NEARLY 50 BILLION OVER FIVE YEARS TO DELETE NEW SPENDING FOR FOOD STAMPS AND CHILD IMMUNIZATIONS AND TO SHRINK AN EXPANSION OF A TAX CREDIT FOR THE WORKING POOR BUT ALL SAID THEY WERE COUNTING ON MORE FAVORABLE OUTCOMES IN THE HOUSESENATE PARLEY TO COME IN THE HOUSE MEMBERS OF THE CONGRESSIONAL BLACK CAUCUS HAVE SUGGESTED ITS 38 VOTES MAY BE LOST IF SUCH DECISIONS STAND BUT SEN CAROL MOSELEYBRAUN OF ILLINOIS THE ONLY SENATOR ON THE CAUCUS SAID YESTERDAY I THINK THEY SENATE FINANCE DEMOCRATS DID A WONDERFUL JOB OF BALANCING ALL THE COMPETING CONCERNS IT'S A PROGRESSIVE BILL THAT GIVES US DEFICIT REDUCTION AS WELL AT THE SAME TIME SHE TOO WANTS TO SEE CHANGES IN THE CONFERENCE COMMITTEE'S BILL THE EMERGING SENATE COMMITTEE BILL WOULD HIT THE RICHEST TAXPAYERS AS HARD AS THE HOUSEPASSED VERSION WOULD BUT WOULDN'T BE AS BENEFICIAL TO THE LOWESTINCOME TAXPAYERS AND WHILE SENS MITCHELL AND MOYNIHAN SAY THE PACKAGE'S DEFICIT REDUCTION AT 508 BILLION OVER FIVE YEARS EXCEEDS MR CLINTON'S AND THE HOUSE BILL'S TOTAL THE ACTUAL LONGTERM SAVINGS ARE LESS THAN MEETS THE EYE THE COMMITTEE DEMOCRATS REPLACED MR CLINTON'S PROPOSED ENERGY TAX WHICH WOULD HAVE RAISED 22 BILLION A YEAR AFTER IT WAS FULLY PHASED IN WITH A 43CENTAGALLON FUEL TAX INCREASE THAT WOULD RAISE ABOUT THE SAME AMOUNT 242 BILLION BUT OVER FIVE YEARS IN ADDITION THE COMMITTEE DEMOCRATS ENGAGED IN A MULTIBILLIONDOLLAR BIT OF GIMMICKRY BY EXTENDING A GROUP OF BUSINESS TAX INCENTIVES TEMPORARILY MR CLINTON AND THE HOUSE WOULD EXTEND THEM PERMANENTLY AND IDENTIFIED WAYS TO MAKE UP THE LOST REVENUE SENATE DEMOCRATS LIMITED THE EXTENSIONS TO A YEAR OR TWO FOR MOST OF THE TAX BREAKS SO THEY WOULDN'T HAVE TO PAY FOR MAKING THEM PERMANENT EVEN THOUGH NO ONE EXPECTS THE TAX BREAKS TO LAPSE THE MOVE MAKES IT APPEAR THAT THE FIVEYEAR COST OF THE TAX BREAKS IS ABOUT 16 BILLION LESS THAN IN THE HOUSE BILL IT REALLY IS A GIMMICK ISN'T IT SAID SEN JOHN DANFORTH R MO WE ALL KNOW IT'S JUST DONE FOR THE PURPOSE OF JIGGERING THE NUMBERS EVEN SO THE PACKAGE FOLLOWING MR CLINTON'S LEAD AMOUNTS TO THE LARGEST DEFICITREDUCTION EFFORT IN HISTORY FOR THE PRESIDENT WHO UNVEILED HIS PLAN IN FEBRUARY THE GOALS WERE TWOFOLD ECONOMIC STIMULUS AND DEFICIT REDUCTION BUT WITH THE SENATE REVISIONS ON TOP OF THOSE THE HOUSE APPROVED LAST MONTH THE BILL HAS EVOLVED INTO ONE AIMED MAINLY AT REDUCING THE DEFICIT FIRST THE HOUSE KILLED MR CLINTON'S PROPOSED INVESTMENT TAX CREDITS FOR BIG AND SMALL BUSINESSES WHICH WOULD HAVE COST ABOUT 30 BILLION OVER FIVE YEARS NOW THE SENATE COMMITTEE DEMOCRATS HAVE DRASTICALLY SCALED BACK THE HOUSE'S ALTERNATIVE STIMULUS PROPOSAL ENDORSED BY MR CLINTON TO EXPAND SMALL BUSINESSES' WRITEOFFS FOR EQUIPMENT PURCHASES TO 25000 FROM 10000 THE SENATORS KILLED OR LIMITED OTHER INCENTIVES AS WELL THE COMMITTEE DEMOCRATS WERE FORCED TO KILL THE PRESIDENT'S ENERGY TAX PROPOSE A FUEL TAX INSTEAD AND CUT DEEPER INTO MEDICARE SPENDING TO ASSUAGE OILSTATE CONSERVATIVES DAVID BOREN OF OKLAHOMA AND JOHN BREAUX OF LOUISIANA MORELIBERAL DEMOCRATS HAVE PRESSED TO RAISE THE CORPORATE RATE TO 36 RATHER THAN CUT HEALTH AND SOCIAL PROGRAMS BUT THE CONSERVATIVES AND DEMOCRATIC LEADERS SEEM TO HAVE PREVAILED IN ARGUING THAT THE PACKAGE COULDN'T PASS THE SENATE UNLESS THERE WERE FEWER TAX INCREASES THAN MR CLINTON PROPOSED AND MORE SPENDING CUTS WHEN WE EXPLAIN TO THEM THE CONSTRAINTS WE WERE WORKING UNDER TO CHANGE THE RATIO OF SPENDING CUTS TO TAX INCREASES THEY UNDERSTAND SAID COMMITTEE MEMBER JAY ROCKEFELLER D W VA IF THE CORPORATE RATE GOES UP HE ADDED THEN YOU LOSE 10 TO 12 OTHER DEMOCRATS' VOTES ON THE FLOOR MEANWHILE HOUSE LEADERS ARE FRETTING ABOUT THE EMERGING SENATE PROVISIONS HITTING MEDICARE PROVIDERS I'M GOING TO HAVE SOME PROBLEMS WITH WHAT THEY DID TO TEACHING HOSPITALS AND URBAN HOSPITALS BUT SO IS PAT MOYNIHAN SAID REP ROSTENKOWSKI MR GEPHARDT ALSO IS SENSITIVE TO THE IMPACT OF SUCH CUTS ON URBAN HOSPITALS BEFORE BREAKING UP LAST NIGHT THE FINANCE COMMITTEE VOTED 146 WITH THREE REPUBLICANS SIDING WITH THE DEMOCRATS TO STICK WITH THE DEMOCRATS' PROPOSAL TO INCREASE TAXES ON THE BESTOFF SOCIAL SECURITY RECIPIENTS 9306180043 930618 WHAT'S NEWS BUSINESS AND FINANCE CLINTON'S ECONOMIC PLAN APPEARS HEADED FOR SENATE PASSAGE NEXT WEEK ON A PARTYLINE VOTE FOLLOWING ITS EXPECTED APPROVAL TODAY BY THE FINANCE COMMITTEE BUT THE MEASURE FACES A DIFFICULT BARGAINING SESSION IN THE HOUSESENATE CONFERENCE COMMITTEE LIBERAL SENATORS AND HOUSE DEMOCRATS ARE BEING ASSURED BY THEIR PARTY LEADERS AND THE ADMINISTRATION THAT PROVISIONS OF THE MEASURE THAT THEY OBJECT TO WILL ULTIMATELY BE REVISED AMR SAID EARNINGS FOR THE LATEST QUARTER WILL BE SIGNIFICANTLY WORSE THAN EXPECTATIONS SENDING AIRLINE STOCKS TUMBLING AMID DASHED HOPES FOR AN INDUSTRY RECOVERY THE AMERICAN AIR PARENT SAID MAY AND JUNE TRAFFIC WAS WEAKER THAN ITS FORECASTS ITS STOCK PLUNGED 425 OR 65 TO 6150 THE US TRADE DEFICIT WIDENED TO 1049 BILLION IN APRIL ONLY SLIGHTLY LARGER THAN MARCH'S 1045 BILLION BUT STILL THE LARGEST GAP IN FOUR YEARS THE APRIL FIGURE REFLECTS WEAK ECONOMIES FOR SOME TRADING PARTNERS AND MODERATE DOMESTIC ECONOMIC GROWTH THE FDA SAID IT SAW NO EVIDENCE OF NATIONWIDE TAMPERING OF PEPSI DRINKS AND MORE PEOPLE WERE ARRESTED FOR FALSE TAMPERING CLAIMS PEPSI'S SHARE PRICE ROSE 125 OR 35 TO 36875 BOEING PLANS AN ALTERATION TO REINFORCE THE PARTS ON ITS 747 JUMBO JETS THAT ARE SUSPECTED OF CAUSING TWO FATAL CRASHES IN THE PAST 18 MONTHS THE PLAN COULD EASILY TOP 100 MILLION PRUDENTIAL SECURITIES' ENERGYPARTNERSHIP PRACTICES ARE UNDER CRIMINAL INVESTIGATION BY THE US ATTORNEY'S OFFICE IN MANHATTAN PEOPLE FAMILIAR WITH THE SITUATION SAID THE DELINQUENCY RATE ON COMMERCIAL MORTGAGES HELD BY INSURERS ROSE TO 711 IN THE FIRST QUARTER FROM 662 AT YEAR END DESPITE AN IMPROVING DOMESTIC ECONOMY AND BETTER RESULTS IN THE REAL ESTATE PORTFOLIOS OF BANKS TELECOMMUNICATIONS SAID IT MADE DEALS WITH 14 TELEVISION STATIONS TO CARRY THEIR SIGNALS WITHOUT PAYING THEM A FEE IN THE COMPANY'S SECOND BIG ROUND OF AGREEMENTS WITH BROADCASTERS UNDER A NEW CABLE LAW THE FCC PROMISED IT WOULD CONSIDER MOVING UP THE DATE FOR CABLE TELEVISION RATE ROLLBACKS AFTER CONGRESS APPROVES FUNDS FOR ENFORCEMENT LIBBEYOWENSFORD SAID VITAL BUSINESS AND FINANCIAL RECORDS ARE IN THE CONTROL OF A COMPANY THAT IT CHARGES WAS SET UP TO DEFRAUD THE GLASS FIRM AUSTRALIA DROPPED ITS DEMAND THAT NORTHWEST AIR HALT BY JUNE 30 CERTAIN FLIGHTS BETWEEN JAPAN AND AUSTRALIA AND THE US AGREED TO DROP ITS RETALIATORY THREAT ON QANTAS FLIGHTS DELL SAID ITS ZOOMING GROWTH IS CAUSING IT TO HAVE TROUBLE TRACKING INVENTORY AND PROJECTING THE SUPPLY OF COMPONENTS THAT GO IN ITS MACHINES VOLKSWAGEN TOLD WORKERS IN GERMANY TO BRACE FOR DEEPER STAFF CUTS JUST DAYS AFTER THE GERMAN CAR COMPANY CONFIRMED IT WANTS TO BUILD AN EXPERIMENTAL FACTORY IN NORTHERN SPAIN THE COMPANY SAID THE CUTS WERE NECESSARY BECAUSE OF A GLOBAL PRICE WAR TOKYO STOCK PRICES ENDED MIXED THURSDAY IN THIN DEALINGS AS BULLISH RUMORS ABOUT INTEREST RATES BUMPED UP AGAINST CONTINUED WORRIES ABOUT JAPAN'S POLITICAL SITUATION THE NIKKEI INDEX ROSE 2309 POINTS TO 1992551 LONDON STOCKS FELL AS HOPES FOR LOWER EUROPEAN INTEREST RATES WERE DASHED BONDS LEHMAN BROTHERS TREASURY INDEX 518515 UP 184 COMMODITIES OIL 1870 A BARREL OFF 14 CENTS DOW JONES FUTURES INDEX 12100 UP 092 SPOT INDEX 12017 UP 065 DOLLAR 10730 YEN UP 085 16590 MARKS UP 00020 9306180042 930618 CHINA NORTHERN TELECOM FORGE MAJOR ACCORD BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL OFFICIALS OF NORTHERN TELECOM LTD AND THE CHINESE GOVERNMENT WERE HOLED UP IN TORONTO LAST NIGHT HAMMERING OUT AN AGREEMENT THAT WILL MARK A MAJOR PARTNERSHIP BETWEEN BEIJING AND THE CANADIAN COMPANY PEOPLE FAMILIAR WITH THE DISCUSSIONS SAID THESE PEOPLE SAID THE DEAL WITH CHINA'S STATE PLANNING COMMISSION CALLS FOR NORTHERN TELECOM TO SUPPLY TELECOMMUNICATIONS SWITCHING AND TRANSMISSION EQUIPMENT IN CHINA AND FORM A LABORATORY TO BE JOINTLY OWNED BY THE CHINESE AND THE COMPANY'S BELL NORTHERN RESEARCH LABS THE DEAL WILL NOT ONLY INVOLVE TELECOMMUNICATIONS EQUIPMENT THEY SAID BUT WILL ALSO INCLUDE A MICROCHIP JOINT VENTURE AND TRAINING CENTERS IN CHINA NORTHERN TELECOM OFFICIALS WERE UNAVAILABLE TO COMMENT LAST NIGHT THIS IS THE SECOND SUCH AGREEMENT BETWEEN BEIJING AND A MAJOR NORTH AMERICAN TELECOMMUNICATIONS EQUIPMENT MANUFACTURER EARLIER THIS YEAR CHINA REACHED A SIMILAR ACCORD WITH AMERICAN TELEPHONE & TELEGRAPH CO THIS WEEK AT&T SET UP A COMPANY CALLED AT&T CHINA TO MANAGE ITS NEW VENTURE TELECOMMUNICATIONS EQUIPMENT COMPANIES SEE CHINA AS THE NEXT GREAT PHONE EQUIPMENT MARKET GIVEN THAT CHINA HAS MORE THAN A BILLION PEOPLE AND 98 OF THEM DON'T HAVE PHONES AT&T EVEN SUGGESTS THAT CHINA MAY SOME DAY ECLIPSE ITS US EQUIPMENT BUSINESS IN SIZE IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY NORTHERN TELECOM'S SHARES CLOSED AT 37375 UP 375 CENTS 9306180041 930618 PEPPERAND SALT HE DECLARED THE OTHER DAY THREE WEEKS AND TWO DAYS AWAY WHETHER I READ THEM BEFORE CHEWING TOBACCO BUBBA GUM 9306180040 930618 THAILAND WORKS THE KINKS FROM A PLAN TO IMPROVE FOREIGNERS' MARKET ACCESS BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND STOCKMARKET REGULATORS ARE PRESSING AHEAD WITH A PLAN TO OFFER OVERSEAS INVESTORS A NEW WAY TO BUY THAI STOCKS AND PARTICIPATE MORE EASILY IN THE COUNTRY'S BURGEONING ECONOMY BUT FOREIGNERS ARE RESERVING JUDGMENT UNTIL THEY READ THE FINE PRINT THAILAND'S SECURITIES AND EXCHANGE COMMISSION HAS FLOATED A GENERAL PROPOSAL TO CREATE UNIT TRUSTS TO INVEST IN LOCAL SHARES ON BEHALF OF FOREIGNERS BUT THE PARTICULARS ARE SKETCHY AND INVESTORS AND ANALYSTS POINT OUT THAT ANY NEW SYSTEM'S SUCCESS RESTS IN THE DETAILS IF THEY DO IT RIGHT IT COULD BE VERY POSITIVE SAYS PETER SCHIEFELBEIN RESEARCH MANAGER FOR STANDARD CHARTERED SECURITIES ASIA LTD THE NEGATIVE SIDE IS IF THEY DO IT WRONG FOREIGN MONEY WILL GET SPLIT BETWEEN DIFFERENT METHODS OF INVESTING AND LIQUIDITY GETS EVEN WORSE CURRENTLY FOREIGNERS ARE PERMITTED TO TRADE ONLY IN A POOL OF SPECIALLY DESIGNATED SHARES A SYSTEM THAT HAS SADDLED OVERSEAS INVESTORS WITH PREMIUM PRICES AND LIQUIDITY PROBLEMS MEANWHILE FOREIGNERS CONTINUE TO BUY ILLICITLY IN THE BROADER MARKET THROUGH LOCAL THIRDPARTY NOMINEES UNDER THE PROPOSAL'S OUTLINE UNIT TRUSTS WOULD BE CREATED INDIVIDUALLY EACH DEDICATED TO A SPECIFIC COMPANY FOR EXAMPLE ONE TRUST FOR INVESTING IN BANGKOK BANK LTD ANOTHER FOR SIAM COMMERCIAL BANK LTD AND SO ON ONE UNIT IN A TRUST WOULD BE EQUAL TO ONE SHARE AND FOREIGN INVESTORS WOULD RECEIVE ALL THE BENEFITS OF SHARE OWNERSHIP EXCEPT FOR VOTING RIGHTS THE TRUSTS THEMSELVES WOULD BE MANAGED BY THAIOWNED COMPANIES MOST LIKELY SOME OF THE COUNTRY'S EIGHT MUTUALFUND MANAGERS SEVEN OF WHICH WERE LICENSED LAST YEAR SUCH A SYSTEM IS MADE NECESSARY BY THAI LAW WHICH LIMITS FOREIGN OWNERSHIP OF MOST COMPANIES TO 49 AND OF BANKS TO 25 RAPEE SUCHARTITAKUL DIRECTOR OF THE SEC OFFICE OF THE SECRETARYGENERAL PREDICTS THAT THE TRUSTS WILL BE OPERATING BEFORE THE END OF THE YEAR HOWEVER AN AGENCY SUBCOMMITTEE IS STILL STUDYING DETAILS OF THE PLAN AND WON'T BE FINISHED UNTIL THE END OF JULY ONE OF THE STICKING POINTS FOR THE SUBCOMMITTEE IS WHETHER THE TRUSTS SHOULD BE OPENEND ALLOWING INVESTORS TO BUY AND SELL UNITS AT ANY TIME OR CLOSEDEND PERMITTING REDEMPTIONS ONLY AT SET INTERVALS THE COMMITTEE IS ALSO GRAPPLING WITH HOW TO APPORTION THE TRUSTS' MANAGEMENT RIGHTS FUND MANAGERS ARE LIKELY TO BE KEEN TO MANAGE TRUSTS FOR POPULAR STOCKS BUT LESS WILLING TO DO SO FOR SELDOMTRADED ONES THEN THERE'S THE ISSUE OF VOTING RIGHTS IF THEY PASS TO A TRUST MANAGER SOME MANAGERS MIGHT BECOME IN EFFECT CONTROLLING SHAREHOLDERS BUT IF VOTING RIGHTS ON TRUSTHELD SHARES ARE CANCELED LOCAL MINORITY HOLDERS MIGHT END UP WIELDING CONTROL FOREIGN INVESTORS IN LIMBO DESPITE THE PROBLEMS THE MOST IMPORTANT ISSUE FOR FOREIGNERS RIGHT NOW IS THAT THE SEC FINISH AS SOON AS POSSIBLE WHEN NEWS OF THE IMPENDING CHANGE WAS LEAKED IN JANUARY THE PREMIUMS ON SOME FOREIGNBOARD STOCKS PLUNGED COSTING INVESTORS A BUNDLE PREMIUMS ON THE FOREIGN BOARD COULD TAKE ANOTHER HIT ONCE THE FINAL PLAN IS ANNOUNCED AND MANY ANALYSTS EXPECT THEM TO ERODE FURTHER AS INVESTORS BECOME ACCUSTOMED TO THE NEW SYSTEM STILL THE TRUSTS WON'T ELIMINATE THE NEED FOR TRADING ON THE FOREIGN BOARD BECAUSE SOME OVERSEAS FUNDS ARE PROHIBITED FROM BUYING SHARES THAT LACK VOTING RIGHTS THERE IS A MISCONCEPTION THAT THIS SYSTEM WILL REPLACE THE NEED FOR FOREIGNERS TO PARTICIPATE ON THE 'ALIEN' BOARD AND THAT ALL FOREIGN PREMIUMS WILL EVENTUALLY DISAPPEAR SAYS RICHARD MARKARIAN EXECUTIVE VICE PRESIDENT FOR NAVA FINANCE & SECURITIES CO MEANWHILE MANY OVERSEAS INVESTORS ARE UNSURE WHAT TO DO NEXT ONE WORRY IS THAT A POORLY CONCEIVED PLAN MIGHT SPLIT FOREIGN MONEY FURTHERAMONG THE NEW TRUSTS THE FOREIGN BOARD AND THE ILLICIT NOMINEES MR RAPEE ACKNOWLEDGES THAT THE CHANGE WILL CREATE SOME DISRUPTION IN TRADING PATTERNS BUT HE AND OTHER OFFICIALS SAY THEY ARE CONFIDENT OF SUCCESS MARKET PARTICIPANTS MEANWHILE PREDICT THE CHANGES WILL WORK AS LONG AS THE NEW RULES PERMIT INVESTORS TO BUY INTO AND OUT OF THE TRUSTS EASILY AND AS LONG AS UNITS CLOSELY TRACK THE MARKET PRICES OF UNDERLYING SHARES 9306180039 930618 WHO'S NEWS DIGITAL EQUIPMENT CORP DIGITAL EQUIPMENT CORP MAYNARD MASS KATHLEEN FOLEY FELDSTEIN PRESIDENT OF ECONOMICS STUDIES INC WAS NAMED A DIRECTOR OF THIS COMPUTER MAKER EXPANDING THE BOARD TO 10 9306180038 930618 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CHICAGO & NORTH WESTERN HOLDINGS CORP A SECONDARY OFFERING OF 13743775 COMMON SHARES BY BLACKSTONE CAPITAL PARTNERS LP AND DONALDSON LUFKIN & JENRETTE CAPITAL CORP COMMUNITY HEALTH SYSTEMS INC AN OFFERING OF 100 MILLION SENIOR SUBORDINATED DEBENTURES DUE 2003 VIA LEHMAN BROTHERS AND CITICORP SECURITIES MARKETS INC DUAL DRILLING CO AN INITIAL OFFERING OF 625 MILLION COMMON SHARES VIA MERRILL LYNCH & CO NATWEST SECURITIES LTD AND HOWARD WEIL LABOUISSE FRIEDRICHS INC THOMAS GROUP INC AN INITIAL OFFERING OF 16 MILLION COMMON SHARES VIA RODMAN & RENSHAW INC 9306180037 930618 POTOMAC WATCH SENATE DEMS BOREN PLAY TAX AND PRETEND BY PAUL A GIGOT BILL BRADLEY RAN A THOUSAND PICKANDROLLS IN THE NBA BUT NONE AS EXPERTLY AS THE ONE HE PULLED OFF IN THE SENATE FINANCE COMMITTEE THIS WEEK THE NEW JERSEY DEMOCRAT PICKED AMERICA'S POCKET TO ROLL OVER A TAX BREAK FOR PUERTO RICO NEW JERSEY YOU SEE IS HOME TO SEVERAL COMPANIES THAT MAKE PHARMACEUTICALS IN PUERTO RICO SO MR BRADLEY ERSTWHILE TAX REFORMER FOUGHT TO SAVE THE ISLAND'S TAX INCENTIVES FOR THOSE DRUG MAKERS BUT SOMEONE HAD TO PAY TO MAKE UP FOR THAT SPECIAL FAVOR SO HE ALSO LOBBIED BEHIND THE SCENES FOR SUCH SCHEMES AS A 10 SURCHARGE ON CAPITAL GAINS CONGRATULATIONS DOLLAR BILL THIS VIRTUOSO MANEUVER AS DEXTEROUSLY LOOPY AS THOSE BACKFLIPPING DUNKS BY THE GORILLA AT PHOENIX SUNS GAMES SUMS UP THE LOGIC OF THE EMERGING SENATE TAX BILL PUERTO RICO NEEDS TO KEEP LOW TAX RATES BUT AMERICA DOESN'T MAYBE THIS TAX PLAN SHOULD BE RENAMED THE RAHWAY NJSAN JUAN PROSPERITY ACT OR MAYBE MR BRADLEY WHO STILL HOPES TO BE PRESIDENT WANTS TO NAIL DOWN THOSE CRUCIAL PUERTO RICAN DELEGATES FOR THE DEMOCRATIC CONVENTION IN THE YEAR 2000 IT'S HARD TO BELIEVE HE THINKS ANY OF THIS WILL GROW THE US ECONOMY THE SENATE EFFORT IS AT LEAST CLARIFYING IN THAT RESPECT IT DROPS EVEN THE PRETENSE OF INCENTIVES FOR GROWTH THE CHERRY FLAVOR IS GONE FROM THE CASTOR OIL GONE ARE PRESIDENT CLINTON'S ENTERPRISE ZONES FOR US CITIES GONE TOO IS EVEN THE PUNY CAPITALGAINS CUT OF ARKANSAS SEN DALE BUMPERS WHAT'S LEFT IS A PASTICHE OF TAX HIKES AND SPECIAL FAVORS THAT ARE PURE TAX AND PRETEND THEY ARE ALL SUPPOSED TO REDUCE THE DEFICIT BY 500 BILLION JUST AS THE 1990 BUDGET DEAL REDUCED IT BY 400 BILLION AND THE 1987 DEAL BY YOU GET THE IDEA A MORE CANDID MOTIVATION FOR THE BILL WAS REVEALED IN A PRESS CONFERENCE BY MAINE'S GEORGE MITCHELL THE RELENTLESSLY EARNEST MAJORITY LEADER IT IS HE SAID THE MOST PROGRESSIVE ECONOMIC PROGRAM PASSED IN HIS 13 YEARS IN THE SENATE HE MENTIONED THE WORD GROWTH ONCE ALMOST AS AN AFTERTHOUGHT MR MITCHELL WORKED HARD FOR HIS BOAST HE WAS ONE OF THOSE WHO FIRST ADVISED MR CLINTON TO PROPOSE A PLAN HEAVY ON TAXES AND LIGHT ON SPENDING CUTS TO PASS WITH ONLY DEMOCRATIC VOTES THEN WHEN THE BILL RAN INTO TROUBLE HE HELPED MUSCLE THE MAIN RENEGADE OKLAHOMA'S DAVID BOREN HE AGREED TO DROP THE BTU TAX MR BOREN'S MAIN PROBLEM IN OKLAHOMA BUT MR MITCHELL ALSO HELPED LIBERALS BLOCK ANY REAL CUTS IN MEDICARE OR OTHER SPENDING AS MR BOREN HAD ALSO ONCE DEMANDED MEANWHILE HE LET OTHER PARTY MEMBERS BEAT THE BRAVERY OUT OF MR BOREN AS A TRAITOR WHO WAS DESTROYING THE CLINTON PRESIDENCY MR BOREN FOLDED LIKE A BAD POKER PLAYER HE STILL HERALDS A CENTRIST CHANGE BUT TO THE CENTER OF WHAT HIS 19 BILLION IN NEW MEDICARE CUTS ARE JUST MORE WHACKS AT DOCTORS AND HOSPITALS WHO WILL SHIFT THE COSTS TO SOMEONE ELSE US IN ANY EVENT THOSE CUTS WILL OCCUR ONLY LATER THIS DECADE WHICH MEANS NEVER MR BOREN'S BARGAIN SELLOUT AT LEAST PUTS AN END TO THE MYTH OF THE GROWTH DEMOCRAT THEY ARE ALL AUSTERITY DEMOCRATS NOW THE BILL REPRESENTS THE TRIUMPH OF THE MITCHELLCLINTON PROGRESSIVE VISION THE 10 SURCHARGE ON CAPITAL GAINS IS INSTRUCTIVE BECAUSE IT IS SO GRATUITOUS IN THE 1990 BUDGET DEAL THE CURRENT 28 RATE WAS DEEMED THE RATE THAT WOULD YIELD THE MOST TAX REVENUE EVEN BY THE LIBERAL CONGRESSIONAL BUDGET OFFICE BUT NOW THAT JUDGMENT YIELDS TO THE MITCHELLBRADLEY YEARNING TO HAVE A PROGRESSIVE BILL THAT PUNISHES THE RICH IN THIS FANTASY WORLD THE RICH DON'T CHANGE THEIR BEHAVIOR IN RESPONSE TO HIGHER RATES AND THE POOR DON'T BENEFIT FROM CAPITAL THAT CREATES JOBS MR CLINTON LIKES TO SAY THAT SMALL BUSINESSES CREATE MOST NEW JOBS BUT UNDER THIS BILL THEIR TOP TAX RATE COULD CLIMB AS HIGH AS 45 FROM 28 JUST THREE YEARS AGO THE FORTUNE 500 WILL SEE THEIR RATES GO ONLY TO 35 FROM 34 NO WONDER MANY FAT CATS LIKE THIS BILL THE SENATE IS LIKELY TO PASS ALL THIS NEXT WEEK IF ONLY BY ONE OR TWO VOTES SO MR MITCHELL CAN LET SOME DEMOCRATS UP FOR REELECTION NEXT YEAR TAKE A PASS IT'S INSTRUCTIVE THAT THE DEMOCRATS WHO HAVE TO FACE THE VOTERS SOONEST WILL BE GIVEN LEAVE TO VOTE AGAINST A BILL THAT IS SUPPOSED TO BE A TRIUMPH THE BEST HOPE OF STOPPING IT IS IF THE BLACK CAUCUS DECIDES IT'S TIRED OF SETTLING FOR CRUMBS THE STIMULUS SPENDING IT WANTED IS GONE AND NOW SO ARE ENTERPRISE ZONES IF THE 38MEMBER CAUCUS BOLTED IN THE HOUSE ITS MEMBERS COULD STILL BRING DOWN THE ENTIRE BILL AND PLAY A PIVOTAL ROLE IN WRITING A NEW AND BETTER ONE BUT THAT IS A VERY LONG SHOT THE SILVER LINING IF THERE IS ONE IS THAT WE HAVE PROBABLY REACHED THE APOGEE OF THE MITCHELL TAX ERA WHEN THE HIGHER TAX RATES DON'T YIELD THE TAX REVENUE AS PROMISED AND THE ECONOMY DOESN'T BOOM AS PROMISED THE PENDULUM WILL SWING BACK TO HOW TO CREATE PROSPERITY THAT MAY BE SOONER THAN WE THINK 9306180036 930618 THURSDAY'S MARKETS STOCKS BONDS LITTLE CHANGED DOLLAR CLIMBS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK PRICES WERE MIXED IN TRADING DOMINATED BY EARNINGSRELATED NEWS BOND PRICES WERE MIXED AND THE DOLLAR GAINED THE DOW JONES INDUSTRIAL AVERAGE GAINED 1024 POINTS TO 352189 STANDARD & POOR'S 500STOCK INDEX ROSE 111 TO 44854 BUT THE NASDAQ COMPOSITE INDEX SLIPPED 031 TO 69594 POOR EARNINGS EXPECTATIONS BATTERED SOME INDIVIDUAL STOCKS WHILE LEAVING THE INDEXES RELATIVELY UNSCATHED LONGHORN STEAKS PLUNGED 7 7/8 OR 40 TO 11 5/8 AFTER THE COMPANY SAID ITS SECONDQUARTER EARNINGS WILL FALL SHORT OF ANALYSTS' EXPECTATIONS THE NEWS DRAGGED DOWN OTHER STEAKHOUSE AND RESTAURANT STOCKS SIMILARLY AIRLINE STOCKS TOOK A BEATING FOR A SECOND DAY ON WORRIES ABOUT EARNINGS DRIVING THE DOW JONES TRANSPORTATION AVERAGE DOWN 1638 POINTS TO 149152 THE DECLINE IN THE TRANSPORTS FOLLOWED A 14POINT DROP WEDNESDAY THE SLIDE WAS SPARKED BY AN ANNOUNCEMENT BY AMR PARENT OF AMERICAN AIRLINES THAT THE COMPANY'S SECONDQUARTER EARNINGS WILL FAIL TO MEET ANALYSTS' FORECASTS AMR FELL 4 1/4 OR 65 TO 61 1/2 LEADING OTHER AIRLINE STOCKS LOWER THERE'S A LOT OF INTERNAL CORRECTING GOING ON SAID GRACE MESSNER HEAD OF EQUITY MANAGEMENT AT WILMINGTON TRUST IN WILMINGTON DEL WE'LL SEE MORE OF THAT BUT IT PROBABLY WON'T MAKE FOR A HUGE DOWNSIDE IN THE INDEXES WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX SLIPPED 029 TO 10608 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2303 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 994 ISSUES ROSE AND 881 FELL BOND PRICES WERE LITTLE CHANGED THE TREASURY'S BENCHMARK 30YEAR ISSUE WAS VIRTUALLY UNCHANGED YIELDING 681 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16590 MARKS AND 10730 YEN COMPARED WITH 16570 MARKS AND 10645 YEN WEDNESDAY 9306180035 930618 REVIEW & OUTLOOK EDITORIAL ASIDES PHOTOS ON WAY THE WHITE HOUSE COUNSEL'S OFFICE TELLS US THAT THE PHOTOGRAPHS WE DISCUSSED IN YESTERDAY'S EDITORIAL ARE NOW ON THE WAY INDEED IT TURNS OUT THAT A FAX TO THAT EFFECT ARRIVED IN OUR OFFICES JUST BEFORE PUBLISHING DEADLINE WEDNESDAY NIGHT WE'RE A BIT ABASHED THAT IT DIDN'T PROMPTLY COME TO THE ATTENTION OF THE RESPONSIBLE EDITORS BUT NOT TOO ABASHED GIVEN THE ALREADY EXTENSIVE DELAY IN THE WHITE HOUSE RESPONSE WE LOOK FORWARD TO SHARING WITH READERS THE LIKENESS OF ASSOCIATE COUNSEL WILLIAM KENNEDY III AND DEPUTY COUNSEL VINCENT FOSTER 9306180034 930618 ABREAST OF THE MARKET PROGRAM BUYING HELPS STOCKS MAKE SOME GAINS IN DULL SESSION BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS MANAGED MODERATE GAINS AIDED BY SEVERAL WAVES OF PROGRAM BUYING BUT ACTION WAS LACKLUSTER OVERALL TRADERS SAID THERE WAS LITTLE NEWS TO MOVE THE MARKET THOUGH SEVERAL READINGS ON THE ECONOMY AND MODERATE GAINS IN THE BOND MARKET INSPIRED SOME BUYING THE DOW JONES INDUSTRIAL AVERAGE JUMPED 1024 OR 029 TO 352189 BUT FOR A SECOND STRAIGHT SESSION MOST OF THE GAINS CAME LATE IN THE DAY AND WERE TIED IN PART TO FUTURESRELATED PROGRAMS THE AVERAGE ROSE 1965 WEDNESDAY ON THE NEW YORK STOCK EXCHANGE ADVANCING ISSUES LED DECLINERS 994 TO 881 BIG BOARD VOLUME TOTALED 230330000 SHARES COMPARED WITH 264470000 SHARES WEDNESDAY THE STANDARD & POOR'S 500STOCK INDEX ADDED 111 OR 025 TO 44854 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 061 OR 025 TO 24721 AND THE DOW JONES EQUITY MARKET INDEX ADVANCED 099 OR 023 TO 42497 AIRLINE STOCKS THOUGH WERE BUMPED OUT OF THE RALLY AGAIN A DISAPPOINTING EARNINGS FORECAST FROM INDUSTRY LEADER AMR THE PARENT OF AMERICAN AIRLINES SENT ITS SHARES AND THOSE OF OTHER CARRIES SHARPLY LOWER AMR SKIDDED 4 1/4 TO 61 1/2 UAL PARENT OF UNITED AIRLINES LOST 5 1/2 TO 121 1/2 AND DELTA AIR LINES DROPPED 1 3/8 TO 48 1/2 USAIR GROUP WHOSE DOWNBEAT OUTLOOK SENT THE AIRLINE GROUP LOWER WEDNESDAY FELL 1 1/4 TO 15 7/8 TRADERS SAID THERE WAS SOME RELUCTANCE TO MAKE BIG COMMITMENTS TO STOCKS AHEAD OF TODAY'S TRIPLEWITCHING QUARTERLY FUTURES AND OPTIONS EXPIRATIONS WHICH CAN FUEL VOLATILITY AND HAVE ALREADY BEEN BLAMED FOR SOME OF THE WILD ACTION THIS WEEK MEANWHILE THERE WAS CONTINUING CONCERN ABOUT EFFORTS IN CONGRESS TO CRAFT LEGISLATION TO REDUCE THE FEDERAL BUDGET DEFICIT GARY THAYER A SENIOR ECONOMIST AT AG EDWARDS & SONS SAID YESTERDAY MORNING'S LABOR DEPARTMENT REPORT ON INITIAL CLAIMS FOR STATE UNEMPLOYMENT INSURANCE WAS A MILD POSITIVE FOR THE STOCK MARKET CLAIMS WERE UNCHANGED LAST WEEK AT 344000 THE COMMERCE DEPARTMENT SAID THE US MERCHANDISE TRADE DEFICIT WIDENED TO 1049 BILLION IN APRIL WHILE THE INCREASE WHICH ANALYSTS TIED TO WEAK OVERSEAS ECONOMIES COULD DEPRESS PROFITS IN THE US MR THAYER SAID HE EXPECTS MUCH OF THE FOREIGN SLUGGISHNESS TO BE OFFSET BY GROWTH IN THE DOMESTIC ECONOMY AMR FELL AFTER THE FORT WORTH TEXAS AIRLINE SAID ITS SECONDQUARTER EARNINGS WILL BE SIGNIFICANTLY BELOW EXPECTATIONS ANALYSTS HAD FORECAST NET INCOME OF ABOUT 1 A SHARE IN THE LATEST PERIOD COMPARED WITH A LOSS OF 221 LAST YEAR WHEN AMR TOOK A BIG CHARGE THE DROP IN AIRLINE STOCKS OUTWEIGHED GAINS IN TRUCKING AND RAILROADS LEAVING THE DOW JONES TRANSPORTATION AVERAGE WITH A LOSS OF 1638 OR 109 TO 149152 THE AVERAGE SKIDDED 1471 WEDNESDAY HOME SHOPPING NETWORK CLIMBED 1/2 TO 10 1/2 A 2952800SHARE BLOCK REPRESENTING 34 OF THE COMPANY'S SHARES OUTSTANDING TRADED ON A ZERO TICK WHEN THE STOCK WAS UNCHANGED AT 10 THE COMPANY SAID IT DIDN'T KNOW WHO BOUGHT OR SOLD THE BLOCK AVERAGE DAILY VOLUME FOR THE STOCK IS 647500 SHARES TOYS R US DROPPED 1 7/8 TO 37 1/8 ANALYSTS SAID OFFICIALS OF THE PARAMUS NJ TOY AND CHILDREN'S CLOTHING RETAILER INDICATED THAT SECONDQUARTER SALES HAVE BEEN SOMEWHAT SLUGGISH THE COMPANY WHICH MET WITH ANALYSTS IN NEW YORK WEDNESDAY BLAMED CONTINUED WEAKNESS IN THE OVERALL RETAIL ENVIRONMENT OBSERVERS STILL EXPECT THE COMPANY TO EARN 13 CENTS TO 14 CENTS A SHARE IN THE QUARTER COMPARED WITH 11 CENTS A YEAR EARLIER PEPSICO ADDED 1 1/4 TO 36 7/8 POLICE HAVE DETERMINED THAT SEVERAL RECENT CLAIMS OF PRODUCT TAMPERING INVOLVING DIET PEPSI WERE HOAXES PEOPLE IN SEVERAL STATES HAVE REPORTED FINDING SYRINGES AND OTHER DEBRIS IN BEVERAGE CANS FOOD AND DRUG ADMINISTRATION COMMISSIONER DAVID KESSLER SAID THE CLAIMS APPEAR TO BE UNFOUNDED CIRCUS CIRCUS CLIMBED 1 7/8 TO 60 3/8 THE LAS VEGAS HOTEL AND CASINO OPERATOR DECLARED A 3FOR2 STOCK SPLIT TCBY ENTERPRISES LOST 7/8 TO 7 AFTER THE COMPANY POSTED LOWERTHANEXPECTED EARNINGS OF 11 CENTS A SHARE FOR THE SECOND QUARTER ANALYSTS HAD EXPECTED THE LITTLE ROCK ARK FROZENYOGURT RETAILER TO EARN ABOUT 16 CENTS ACCORDING TO INSTITUTIONAL BROKERS ESTIMATE SYSTEM A YEAR EARLIER IT REPORTED NET INCOME OF 10 CENTS HEWLETTPACKARD CONTINUED TO SLIDE LOSING 2 3/8 TO 81 IT LOST 3 3/8 WEDNESDAY ON CONCERN ABOUT THE STRENGTH OF ITS BUSINESS OTHER TECHNOLOGY STOCKS WERE WEAK AGAIN DIGITAL EQUIPMENT LOST 1 5/8 TO 40 3/4 INTERNATIONAL BUSINESS MACHINES SHED 3/4 TO 49 5/8 AND AUTOMATIC DATA PROCESSING TUMBLED 1 1/2 TO 47 1/2 ELCOR CORP DROPPED 1 TO 28 A PUBLIC OFFERING OF 115 MILLION ADDITIONAL SHARES OF THE DALLAS ROOFING AND INDUSTRIAL PRODUCTS CONCERN WAS PRICED LATE WEDNESDAY AT 28 A SHARE BIOCRAFT LABORATORIES CLIMBED 1 5/8 TO 23 3/4 THE FAIR LAWN NJ MAKER OF GENERIC DRUGS POSTED NET OF 27 CENTS A SHARE FOR THE FOURTH QUARTER ENDED MARCH 31 REVERSING A YEAREARLIER LOSS OF 26 CENTS APACHE CORP JUMPED 1 7/8 TO 30 THE HOUSTON OIL AND GAS CONCERN AGREED TO ACQUIRE A 68 INTEREST IN HADSON ENERGY RESOURCES FROM OKLAHOMA CITY'S HADSON CORP AND SEVERAL OTHER SHAREHOLDERS APACHE WILL PAY 14 A SHARE OR 588 MILLION SHARES OF HADSON ENERGY ALSO BASED IN OKLAHOMA CITY GAINED 1 5/8 TO 13 1/2 9306180033 930618 WHO'S NEWS STANDARD FEDERAL BANK STANDARD FEDERAL BANK TROY MICH WILLIAM E HOGLUND EXECUTIVE VICE PRESIDENT OF GENERAL MOTORS CORP WAS ELECTED TO THE BOARD OF THIS SUBURBAN DETROIT BANK MR HOGLUND IS ALSO A DIRECTOR OF GM HE WILL FILL A VACANCY ON STANDARD FEDERAL'S BOARD LEFT BY THE RETIREMENT OF EDWARD LERCHEN 9306180032 930618 BUSINESS BRIEF CONTROLLING HOLDER OF FIELDCREST CANNON INCREASES BOARD'S SIZE EDEN NC FIELDCREST CANNON INC SAID ITS CONTROLLING SHAREHOLDER AMOSKEAG CO INCREASED THE SIZE OF FIELDCREST'S BOARD TO 17 MEMBERS FROM 12 THE MOVE APPEARS TO INCREASE THE INFLUENCE OF THE DUMAINES TRUST OVER THE BOARD AS FIELDCREST CONFRONTS WHAT IT HAS TERMED AN UNSOLICITED 140 MILLION TAKEOVER BID FROM SPRINGS INDUSTRIES INC THE TRUST CONTROLS BOTH AMOSKEAG AND FIELDCREST WHEN THE SPRINGS OFFER WAS MADE IN MAY FIELDCREST A TEXTILE COMPANY REACTED COOLY SAYING IT WAS NOT FOR SALE BUT THE COMPANY'S POSITION MAY BE AT ODDS WITH THAT OF THE DUMAINES TRUST WHICH IN JANUARY TOOK STEPS TO SELL ITS INVESTMENTS IN BOTH AMOSKEAG AND FIELDCREST YESTERDAY AMOSKEAG AN INVESTMENT CONCERN BASED IN BOSTON SAID THE MOVE TO INCREASE THE SIZE OF THE BOARD WAS MADE AT THE BEHEST OF THE DUMAINES TRUST MEMBERS OF THE TRUST PREVIOUSLY FILLED SIX OF THE 12 SEATS ON THE FIELDCREST BOARD OF THE FIVE NEW MEMBERS FOUR ARE DUMAINES TRUSTEES GIVING THE TRUST 10 OF THE 16 BOARD SEATS CURRENTLY FILLED THE FIFTH NEW BOARD SEAT HAS YET TO BE FILLED WHEN ASKED ABOUT THE EXPANDED BOARD FIELDCREST'S CHIEF FINANCIAL OFFICER KW FRASER JR SAID ONLY THAT THE TRUST HAS AN ABSOLUTE MAJORITY NOW MR FRASER SAID THE SPRINGS OFFER WAS STILL BEING REVIEWED AND THAT FIELDCREST WOULD RESPOND IN DUE COURSE AMOSKEAG WHICH CONTROLS 807 OF THE VOTING POWER OF FIELDCREST AND 301 OF THE CAPITAL STOCK DIDN'T RETURN CALLS A SPOKESMAN FOR SPRINGS INDUSTRIES A FORT MILLS SC MAKER OF HOME FURNISHINGS AND OTHER TEXTILE PRODUCTS DECLINED TO COMMENT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FIELDCREST SHARES ROSE 625 CENTS TO 28875 9306180031 930618 WHO'S NEWS FLEETWOOD ENTERPRISES INC FLEETWOOD ENTERPRISES INC RIVERSIDE CALIF WALTER F BERAN WAS ELECTED TO THE BOARD OF THIS MAKER OF MOBILE HOMES AND RECREATIONAL VEHICLES SUCCEEDING C DANIEL STRETCH WHO DIED MAY 30 MR BERAN IS CHAIRMAN OF THE FEDERAL HOME LOAN BANK OF SAN FRANCISCO 9306180029 930618 INTERNATIONAL VW TELLS WORKERS OF FURTHER CUTS IN GERMAN STAFF BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN JUST DAYS AFTER GERMANY'S VOLKSWAGEN AG CONFIRMED IT WANTS TO BUILD AN EXPERIMENTAL FACTORY IN NORTHERN SPAIN THE CAR MAKER TOLD WORKERS IN GERMANY TO BRACE FOR DEEPER STAFF CUTS KLAUS VOLKERT CHAIRMAN OF VW'S COMBINED WORKS COUNCIL SAID THAT GLOBAL OVERCAPACITY IN THE AUTO INDUSTRY HAS LED TO A RUINOUS PRICE WAR AND THAT VW WILL HAVE TO REACT WITH MASSIVE STRUCTURAL CHANGES BUT HE STOPPED SHORT OF SAYING HOW MANY MORE JOBS WILL BE ELIMINATED IN GERMANY THE ANNOUNCEMENT OF ADDITIONAL CUTS WHILE VW PUSHES AHEAD WITH PLANS FOR A NEW FACILITY IN SPAIN IS LIKELY TO ANGER VW'S GERMAN WORK FORCE SENSITIVITY OVER THE JOBS ISSUE MAY BE ONE REASON VW REFUSES TO CALL THE SPANISH PROJECT A MANUFACTURING PLANT INSTEAD VW CALLS IT A LABORATORY FOR PRODUCTION TECHNOLOGY DANIEL GOEUDEVERT VW'S ASSISTANT CHAIRMAN SAID AT YESTERDAY'S MEETING WITH WORKERS THAT GLOBAL SALES BY THE VW GROUP PLUNGED 12 TO 13 MILLION CARS IN THE FIRST FIVE MONTHS OF 1993 FROM THE YEAREARLIER PERIOD AND HE SAID SALES COULD CONTINUE TO SKID WELL INTO NEXT YEAR THE VW GROUP INCLUDES CARS SOLD UNDER THE AUDI SEAT AND SKODA BRANDS THE OUTLOOK INSIDE GERMANY CAUGHT IN ITS WORST RECESSION SINCE WORLD WAR II IS EVEN GRIMMER MR GOEUDEVERT SAID DOMESTIC SALES OF VW AND AUDI LUXURY BRAND VEHICLES WERE DOWN 22 IN THE FIRST FIVE MONTHS DROPPING TO 401000 CARS FROM THE YEARAGO LEVEL OF 516000 MR GOEUDEVERT SAID THE COMPANY HAS NO CHOICE BUT TO SEEK A NEW AGREEMENT WITH UNIONS TO LAY OFF ADDITIONAL WORKERS IN 1993 AND 1994 THE COMPANY PREVIOUSLY SAID IT WOULD SHED 12500 PEOPLE FROM ITS GERMAN PAYROLL DURING THIS PERIOD MR GOEUDEVERT SAID IT WAS ESPECIALLY CRUCIAL TO CUT COSTS AT VW'S SPRAWLING WOLFSBURG FACTORY WHICH CHURNS OUT ABOUT HALF THE CARS BUILT UNDER THE VW NAME 9306180028 930618 WOOLWORTH THIS YEAR WILL OPEN 20 TO 25 WORLD FOOT LOCKERS DALLAS WOOLWORTH CORP PRESIDENT AND CHIEF OPERATING OFFICER FREDERICK E HENNING SAID THE NEW YORKBASED RETAILER PLANS TO QUICKLY EXPAND ITS WORLD FOOT LOCKER STORES LARGESCALE SPINOFFS OF THE SUCCESSFUL FOOT LOCKER CONCEPT MR HENNING SPEAKING AT THE ANNUAL MEETING HERE SAID WOOLWORTH IS CONFIDENT WORLD FOOT LOCKER STORES INDIVIDUALLY CAN GENERATE FIVETO10 TIMES THE VOLUME OF A TYPICAL FOOT LOCKER ATHLETICSHOE STORE MANY OF WHICH PRODUCE REVENUE OF ABOUT 1 MILLION ANNUALLY WOOLWORTH OPERATES MORE THAN 1750 FOOT LOCKERS 115 MORE ARE SCHEDULED TO OPEN THIS YEAR WORLD FOOT LOCKER FIRST OPENED LATE LAST YEAR IN DALLAS'S NORTHPARK MALL AND IN RACEWAY MALL IN FREEHOLD NJ THE COMPANY SAID THE DALLAS STORE'S SUCCESS PROMPTED THE COMPANY TO LOCATE A SECOND STORE IN THIS TEXAS CITY SCHEDULED TO OPEN NEXT MONTH MR HENNING INDICATED THAT WORLD FOOT LOCKER EVENTUALLY COULD OCCUPY SPACE IN 300 TO 600 HIGHVOLUME MALLS NATIONWIDE WOOLWORTH CURRENTLY HAS PLANS TO OPEN BETWEEN 20 AND 25 OF THE STORES THIS YEAR PART OF THE MORE THAN 800 VARIOUS SPECIALTY STORES WOOLWORTH WILL OPEN WORLDWIDE SEPARATELY MR HENNING TOLD THE SHAREHOLDERS' MEETING THAT THE COMPANY EXPECTS FOUR OF ITS SPECIALTY DIVISIONS CHAMPS SPORTS AFTERTHOUGHTS A COSMETIC JEWELRY CHAIN LADY FOOT LOCKER AND NORTHERN REFLECTIONS A RETAILER OF WOMEN'S OUTDOOR SPORTSWEAR TO CONTRIBUTE ABOUT 28 BILLION IN TOTAL REVENUE BY 1997 COMBINED THOSE FOUR UNITS PRODUCED 1 BILLION IN REVENUE IN 1992 ROUGHLY 10 OF THE COMPANY'S REPORTED REVENUE OF 99 BILLION OPERATING PROFIT OVER THAT SAME PERIOD IS PROJECTED TO INCREASE THREEFOLD TO ABOUT 300 MILLION 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 9306180027 930618 NEW TEAM PLANNED FOR FERRUZZI MILAN A GROUP OF CREDITOR BANKS OF FERRUZZI FINANZIARIA IS PLANNING TO APPOINT MONDAY A NEW MANAGEMENT TEAM FOR THE FINANCIALLY TROUBLED AGROINDUSTRIAL AND CHEMICAL GROUP A SENIOR BANK OFFICIAL SAID THE OFFICIAL SAID THE LEADING CREDITOR BANKS MET YESTERDAY WITH FERRUZZI'S MANAGEMENT AT THE HEADQUARTERS OF MEDIOBANCA THE MILAN MERCHANT BANK THAT IS DRAWING UP A FINANCIAL AND INDUSTRIAL RESTRUCTURING OF HEAVILY INDEBTED FERRUZZI 9306180026 930618 BUSINESS BRIEF INFRASONICS INC SAN DIEGO CONCERN EXPECTS QUARTERLY OPERATING LOSS INFRASONICS INC SAID IT EXPECTS TO REPORT AN OPERATING LOSS FOR THE FOURTH QUARTER ENDING JUNE 30 WHICH WILL CONTRIBUTE TO LOWERTHANANTICIPATED EARNINGS FOR THE FISCAL YEAR THE SAN DIEGO FIRM SAID THAT QUARTERLY REVENUE IS EXPECTED TO EXCEED 47 MILLION BUT THAT INCREASED REVENUE ISN'T EXPECTED TO OFFSET HIGHERTHANUSUAL EXPENSES TIED TO REGULATORY COMPLIANCE THE COMPANY ATTRIBUTED THE SLOWDOWN IN REVENUE GROWTH MAINLY TO UNCERTAINTY OVER THE ECONOMY AND NATIONAL HEALTHCARE REFORM INFRASONICS MAKES RESPIRATORYCARE PRODUCTS FOR THE YEAR ENDED JUNE 30 1992 INFRASONICS REPORTED NET INCOME OF 18 MILLION OR 19 CENTS A SHARE ON REVENUE OF 155 MILLION THE COMPANY DIDN'T BREAK OUT FOURTHQUARTER RESULTS FOR 1992 THE ANNOUNCEMENT CAME AFTER THE CLOSE OF THE STOCK MARKETS INFRASONICS FELL 125 CENTS TO 8 IN OVERTHECOUNTER TRADING 9306180025 930618 SO PEOPLE PARTYING WITH BACCHUS COULD BE ANOTHER PROBLEM AREA BY JYOTI THOTTAM STAFF REPORTER OF THE WALL STREET JOURNAL THE BUREAU OF ALCOHOL TOBACCO AND FIREARMS HAS ORDERED A COVERUP LAST YEAR THE BUREAU REJECTED A DESIGN FOR A WINE LABEL THAT FEATURED A BAREBREASTED MERMAID DRAWN BY THE ART DECO MASTER ERTE THE BUREAU CITED A RULE BARRING ANY STATEMENT DESIGN DEVICE OR REPRESENTATION WHICH IS OBSCENE OR INDECENT IT ORDERED THE IMPORTER ANGELINI WINE LTD OF NEW LONDON CONN TO COVER THE MERMAID'S BREASTS ANGELINI WAS TOLD IN A LETTER FROM THE ATF'S PRODUCTCOMPLIANCE BRANCH THAT THE PICTURE OF THE NUDE WOMAN WOULD BE CONSIDERED OBJECTIONABLE THE MERMAID IN THE SHAPE OF A 5 IS FROM A SERIES OF LITHOGRAPHS CALLED NUMERALS THE PRINTS PUBLISHED IN 1968 WERE BASED ON THE NUMERALS 0 THROUGH 9 AZINEDA AGRICOLA LIVON AN ITALIAN WINERY USES THE MERMAID LITHOGRAPH BACKWARD ON ITS CRU WINES IN 1989 AND 1990 THE ATF APPROVED THE MERMAID LABELS FOR LIVON'S 1988 AND 1989 VINTAGES WHICH WERE SOLD IN THE US WITHOUT INCIDENT BUT WHEN ANGELINI APPLIED LAST YEAR TO USE THE MERMAID ON LIVON'S 1991 VINTAGE THE BUREAU SAID NO ANGELINI TOLD BY THE BUREAU TO HAVE THE PICTURE OF THE WOMAN RENDERED UNOBJECTIONABLE ASKED LIVON TO GIVE THE MERMAID A BIKINI TOP ANGELINI EXPECTS TO BEGIN RECEIVING THE MORE DEMURE SHIPMENT SOON BOTTLES WITH THE ORIGINAL DESIGN ARE STILL ON SALE IN EUROPE AND CANADA SAYS PAUL ANGELINI COOWNER OF ANGELINI WINE THE OLD LABEL HAS FANS BOB FEINN OWNER OF MT CARMEL WINE & SPIRITS IN HAMDEN CONN KEEPS A POSTER OF THE ERTE LABEL IN HIS HOME THERE'S CERTAINLY NOTHING LEWD ABOUT IT MR FEINN SAYS AND THE PROPORTIONS ARE SO BEAUTIFUL HE ADDS THAT COVERING IT WOULD TAKE AWAY FROM IT BUT THE FUTURE LOOKS BRIGHTER FOR CONNOISSEURS OF WINE LABEL ART AN ATF SPOKESMAN SAYS A RECENT POLICY SHIFT HAS MADE THE BUREAU MORE OPEN TO DARING DESIGNS WHAT'S ON THE BOTTLE HE SAYS ISN'T AS IMPORTANT AS WHAT'S IN IT ANGELINI PLANS TO RESUBMIT THE NAKED MERMAID FOR LIVON'S NEXT VINTAGE BUT FOR THE CURRENT CROP IT'S TOO LATE TO TAKE OFF THE TOP 9306180024 930618 FINANCING BUSINESS ROCHESTER COMMUNITY SAVINGS BANK ROCHESTER COMMUNITY SAVINGS BANK ROCHESTER NY SAID IT PLANS TO OFFER 60 MILLION OF NONCUMULATIVE CONVERTIBLE PERPETUAL PREFERRED STOCK IT SAID IT WOULD COMMENCE A PROGRAM TO ACCELERATE THE DISPOSITION OF ABOUT 174 MILLION OF CERTAIN NONPERFORMING COMMERCIAL REAL ESTATE ASSETS AND OTHER CLASSIFIED ASSETS 9306180023 930618 DELOITTE RTC SUSPEND TALKS ON S&L AUDITS DISCUSSIONS INVOLVED SUITS SEEKING 14 BILLION ADDITIONAL ACTIONS FILED BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK NEGOTIATIONS APPARENTLY HAVE BROKEN DOWN BETWEEN DELOITTE & TOUCHE AND FEDERAL REGULATORS OVER LAWSUITS SEEKING MORE THAN 14 BILLION IN DAMAGES FOR ALLEGEDLY FAULTY AUDITS OF BANKS AND THRIFTS THE SUSPENDED GLOBAL SETTLEMENT TALKS INVOLVED AT LEAST EIGHT SUITS AGAINST DELOITTE THE NATION'S THIRDLARGEST ACCOUNTING FIRM PLUS THREATENED ADDITIONAL LITIGATION ATTORNEYS CLOSE TO THE CASES SAY THE RESOLUTION TRUST CORP WITHDREW SOCALLED TOLLING AGREEMENTS IN WHICH BOTH PARTIES AGREE TO CONTINUE CASES WHILE NEGOTIATING BEYOND THE THREEYEAR STATUTE OF LIMITATIONS AS A RESULT THE RTC HAS SUED DELOITTE OVER ALLEGEDLY FAULTY AUDITS OF SIX MORE THRIFTS AND BANKS IN FOUR STATES ACCORDING TO THE FEDERAL AGENCY DAN GOLDWASSER AN ATTORNEY AND CONSULTANT ON MALPRACTICE LAW FOR THE 33000MEMBER NEW YORK STATE SOCIETY OF CERTIFIED PUBLIC ACCOUNTANTS SAID THE BREAKDOWN IS A SERIOUS THREAT TO DELOITTE BECAUSE IT WILL BE DIFFICULT TO BEGIN OVERALL SETTLEMENT TALKS AGAIN BUT THE BREAKDOWN COULD REFLECT GAMESMANSHIP ON THE PART OF DELOITTE AND THE RTC MR GOLDWASSER SAID BOTH ARE PROBABLY JOCKEYING FOR BETTER DEALS AND THE RTC HAS PROBABLY RAISED THE STAKES BEYOND WHAT DELOITTE IS WILLING TO SETTLE FOR HE ADDED IN WASHINGTON DC RTC SPOKESWOMAN FELISA NEURINGER CONFIRMED THAT THE AGENCY FILED SIX AUDITING MALPRACTICE SUITS AGAINST DELOITTE IN APRIL AND MAY NONE HAS BEEN FILED RECENTLY AGAINST OTHER ACCOUNTING FIRMS MS NEURINGER SAID SHE DECLINED TO COMMENT ON ANY UMBRELLA SETTLEMENT TALKS WITH DELOITTE OR OTHER ACCOUNTING FIRMS ALTHOUGH DELOITTE IS FINANCIALLY STRONG THE RTC'S PROCEEDING WITH THESE LAWSUITS WILL PUT GREAT PRESSURE ON DELOITTE'S FINANCES SAID MARK CARR EDITOR OF THE NEWSLETTER PUBLIC ACCOUNTING REPORT DELOITTE'S PARTNERS' CAPITAL IS MORE THAN 458 MILLION HE SAID J MICHAEL COOK CHAIRMAN OF DELOITTE CONFIRMED THAT THE FIRM WAS HAVING SETTLEMENT DISCUSSIONS WITH FEDERAL BANK REGULATORS BUT A SETTLEMENT MAY NEVER TAKE PLACE OR IT MAY EVEN THOUGH THESE SUITS HAVE BEEN FILED BY THE RTC IN APRIL AND MAY HE ADDED DECLINING TO COMMENT FURTHER THE RTC'S SUSPENDED DISCUSSIONS WITH DELOITTE FOLLOW THE RECORD UMBRELLA SETTLEMENT OF 400 MILLION PAID IN NOVEMBER BY ERNST & YOUNG THE SECONDBIGGEST US ACCOUNTING FIRM THE AGREEMENT COVERED ALL LAWSUITS ALLEGING FAULTY AUDITS OF BANKS AND THRIFTS BY ERNST & YOUNG ATTORNEYS CLOSE TO THE SETTLEMENT TALKS SAY THAT AT LEAST TWO OTHER BIG ACCOUNTING FIRMS ARE NEGOTIATING WITH THE RTC ABOUT SIMILAR GLOBAL SETTLEMENTS THE SIX MAJOR ACCOUNTING FIRMS RECENTLY DISCLOSED THAT LITIGATION OVER FAULTY AUDITS HAS COST THEM 12 OF THEIR TOTAL 1992 AUDITING AND ACCOUNTING REVENUE UP FROM 9 IN 1992 AND THE FIRMS HAVE PUSHED FOR TORT REFORM IN CONGRESS TO LIMIT JOINT AND SEVERAL LIABILITY AMONG PARTNERS WHO DIDN'T PARTICIPATE IN ALLEGEDLY FAULTY AUDITS THE FIRMS HAVE THREATENED TO DROP AUDITS OF ANY COMPANY OR FINANCIAL INSTITUTION THAT APPEARS RISKY SAYING THAT SUCH A MOVE WOULD HURT THE US CAPITALRAISING PROCESS THE RTC'S RECENT SUITS AGAINST DELOITTE COVER THESE FINANCIAL INSTITUTIONS AND MORE THAN 700 MILLION IN DAMAGES WESTERN SAVINGS & LOAN ASSOCIATION IN PHOENIX MORE THAN 400 MILLION CENTRUST FEDERAL SAVINGS BANK IN MIAMI 250 MILLION BALDWIN COUNTY FEDERAL SAVINGS BANK IN ROBERTSDALE ALA 129 MILLION FIRST AMERICA SAVINGS BANK IN LONGMONT COLO 1 MILLION GENERAL FEDERAL SAVINGS BANK IN CORAL GABLES FLA 147 MILLION AND AMERICAN PIONEER SAVINGS BANK IN ORLANDO FLA 461 MILLION 9306180022 930618 BUSINESS BRIEF WW WILLIAMS CO BOARD WILL ASK SHAREHOLDERS TO CLEAR PLAN TO GO PRIVATE WW WILLIAMS CO'S BOARD WILL ASK SHAREHOLDERS TO VOTE ON A PLAN TO TAKE THE COMPANY PRIVATE VIA A 1000FOR1 REVERSE STOCK SPLIT A PROPOSED AMENDMENT TO ITS ARTICLES OF INCORPORATION WOULD CALL FOR HOLDERS OF FEWER THAN 1000 SHARES TO RECEIVE 19 PER SHARE THE STOCK HAD BEEN TRADING AT ABOUT 14 BEFORE THE COMPANY FIRST ANNOUNCED ITS INTENTION TO INVESTIGATE GOING PRIVATE AT ITS ANNUAL SHAREHOLDER MEETING APRIL 23 IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY THE COMPANY'S SHARES CLOSED AT 1775 UP 75 CENTS THE COLUMBUS OHIO INDUSTRIAL EQUIPMENT DISTRIBUTOR SAID THE PLAN WOULD REDUCE THE NUMBER OF SHAREHOLDERS OF RECORD TO FEWER THAN 100 AND RELIEVE THE COMPANY OF ANY REPORTING OBLIGATIONS UNDER THE FEDERAL SECURITIES EXCHANGE ACT OF 1934 THE COMPANY REPORTED 1992 NET INCOME OF 14 MILLION ON REVENUE OF 784 MILLION THE COMPANY WOULDN'T DISCLOSE THE ESTIMATED COST OF THE BUYOUT HOWEVER IT SAID 300 OF ITS 400 SHAREHOLDERS OWN A MAXIMUM OF 1000 SHARES THERE ARE 896000 SHARES OUTSTANDING THE COMPANY SAID IT PLANS A SHAREHOLDERS MEETING 9306180021 930618 LETTERS TO THE EDITOR UNDERSTANDING COSTS HELPS BOTTOM LINE BEFORE TAKING PETER DRUCKER TO TASK LETTERS MAY 25 ITZHAK SHARAV SHOULD GET A BETTER UNDERSTANDING OF ACTIVITY BASED COSTING ABC ABC IS A METHODOLOGY OR TECHNIQUE FOR ACCOUNTING FOR COSTS AND HE IS CORRECT THAT IT INDEED IS AN IMPROVEMENT UPON TRADITIONAL COST ACCOUNTING AS A TECHNIQUE FOR COST ACCOUNTING HOWEVER ABC WILL TRACE ONLY THOSE COSTS THAT IT IS APPLIED TO IF YOU APPLY IT TO ALL COSTS IT WILL AS DR DRUCKER POINTS OUT RECORD ALL COSTS IF YOU APPLY IT TO SOMETHING SMALLER IN SCOPE IT WILL RECORD THOSE COSTS MORE IMPORTANT HOWEVER IS THE FACT THAT ABC IS THE FOUNDATION FOR ACTIVITY BASED MANAGEMENT ABM CONCEPTS THAT ARE BEGINNING TO IMPROVE PROFITABILITY IN AN ASSORTMENT OF BUSINESSES ABM ALLOWS PEOPLE TO UNDERSTAND THE COST OF THE ACTIVITIES OR WORK THEY DO AND TO FOCUS ON THE EXPENSIVE NONVALUEADDED TASKS THAT MUST BE ELIMINATED OR REDUCED TO TRULY IMPROVE BOTTOMLINE OUTCOMES 9306180020 930618 ALLIEDSIGNAL AGREES TO PAY 61 MILLION IN CLEANUP DISPUTE MORRIS TOWNSHIP NJ ALLIEDSIGNAL INC SAID IT AGREED TO PAY 61 MILLION IN PENALTIES AND FEES TO CLEAN UP 18 ABANDONED CHROMIUM DUMPS IN HUDSON COUNTY NJ BUT WHILE THE AEROSPACE AUTOMOTIVE PRODUCTS AND CHEMICAL CONCERN HAILED THE AGREEMENT AS MUTUALLY BENEFICIAL STATE ENVIRONMENTAL REGULATORS THREATENED FURTHER LEGAL ACTION AGAINST THE COMPANY WE FEEL THERE ARE AT LEAST 18 OTHER SITES THAT THEY ARE RESPONSIBLE FOR SAID A SPOKESMAN FOR THE NEW JERSEY DEPARTMENT OF ENVIRONMENTAL PROTECTION AND ENERGY BUT THEY ARE REFUSING TO ACCEPT ANY RESPONSIBILITY FOR THOSE SITES WE WILL ISSUE DIRECTIVES NEXT WEEK TO CLEAN UP THE SITES WHICH THEY WON'T DO THEN WE WILL HAVE TO GO AFTER THEM IN COURT ALLIEDSIGNAL HAS NEVER OPERATED A CHROMIUM PLANT IN NEW JERSEY IT IS RESPONSIBLE HOWEVER FOR THE DUMPING BY A PREDECESSOR PLANT MUTUAL CHEMICAL CO WE DON'T FEEL WE'RE RESPONSIBLE FOR THOSE OTHER SITES BECAUSE THE MATERIAL DIDN'T COME FROM MUTUAL CHEMICAL A SPOKESMAN FOR THE COMPANY SAID ALLIEDSIGNAL REMAINS THE ONLY COMPANY WITH LINGERING CHROMIUMWASTE DISPUTES IN THE STATE REGULATORS SAID IN 1990 PPG INDUSTRIES INC PITTSBURGH AGREED TO PAY NEW JERSEY 825 MILLION IN CLEANUP FEES AND PENALTIES MAXUS ENERGY CORP DALLAS ALSO AGREED TO PAY 54 MILLION IN FEES AND PENALTIES THE COMPANY REMAINS INVOLVED IN A CLASSACTION SUIT INVOLVING CHROMIUM DUMPING BY MUTUAL CHEMICAL THE SUIT FILED IN HUDSON COUNTY SUPERIOR COURT LAST OCTOBER CALLS FOR ALLIEDSIGNAL TO PROVIDE MEDICAL MONITORING FOR PEOPLE WHO RECREATED AT METRO FIELD AN ATHLETIC FIELD BUILT ON A CHROMIUM DUMP SITE ALLIEDSIGNAL RECENTLY REHABILITATED THE FIELD 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 9306180018 930618 TECHNOLOGY US TO FIGHT PLAN BY SANDOZ TO MARKET SCRIPPSMADE DRUGS WASHINGTON THE US GOVERNMENT WILL FIGHT AN ARRANGEMENT UNDER WHICH THE SWISS DRUG MAKER SANDOZ AG HAS PROPOSED BUYING RIGHTS TO MARKET DRUGS PRODUCED BY A US TAXPAYERBACKED LABORATORY SANDOZ PHARMACEUTICALS CORP THE COMPANY'S US UNIT TENTATIVELY AGREED IN DECEMBER TO PAY SCRIPPS RESEARCH INSTITUTE 300 MILLION OVER 10 YEARS IN EXCHANGE FOR THE RIGHT TO MARKET THE LAB'S MEDICAL DISCOVERIES SCRIPPS IN LA JOLLA CALIF RECEIVES ABOUT 75 OF ITS ANNUAL RESEARCH BUDGET OR NEARLY 100 MILLION FROM THE US FEDERAL GOVERNMENT DR BERNADINE HEALY DIRECTOR OF THE NATIONAL INSTITUTES OF HEALTH TOLD A HOUSE PANEL THAT TERMS OF THE DEAL SEEM TO VIOLATE A FEDERAL LAW KNOWN AS THE BAYHDOLE ACT THAT ENCOURAGES TRANSFERRING SCIENTIFIC BREAKTHROUGHS FROM THE LAB TO SMALL US COMPANIES TO MARKET THEM WE ARE PREPARED TO TAKE SWIFT ACTION AND WE HAVE THE SUPPORT OF THE DEPARTMENT ON THAT SAID DR HEALY WHOSE AGENCY IS PART OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES IF SCRIPPS SIGNS THE PACT SHE SAID NIH WILL RESTRICT OR ELIMINATE ITS RIGHT TO CLAIM OWNERSHIP OVER ANY NIHFINANCED RESEARCH DR WILLIAM BEERS SCRIPPS'S SENIOR VICEPRESIDENT SAID WE BELIEVE THE AGREEMENT CONFORMS TO THE SPIRIT AND LETTER OF BAYHDOLE DR BEERS SAID HOWEVER THAT THERE'S NOTHING IN THERE THAT CAN'T BE CHANGED THE PACT WHICH WOULD TAKE EFFECT IN 1997 HASN'T BEEN SIGNED YET SANDOZ ALSO AFFIRMED ITS WILLINGNESS TO WORK WITH NIH AND CONGRESS TO SEEK A RESOLUTION OF ALL REMAINING ISSUES WITH RESPECT TO ITS PROPOSED BIOMEDICAL RESEARCH AGREEMENT WITH SCRIPPS 9306180017 930618 THE TAX PACKAGE ADVANCES ACT I ACT II ACT III MAJOR PROVISIONS OF PRESIDENT CLINTON'S TAX PROPOSAL AND THE HOUSE OF REPRESENTATIVES' VERSION AND THE SENATE FINANCE COMMITTEE'S EXPECTED VERSION CLINTON INCREASE MARGINAL RATE TO 36 FOR COUPLES WITH TAXABLE INCOME ABOVE 140000 115000 FOR INDIVIDUALS AND TO 396 FOR COUPLES AND INDIVIDUALS WITH TAXABLE INCOME ABOVE 250000 HOUSE SAME EFFECTIVE 1/1/93 SENATE INCREASE RATE TO 335 THIS YEAR AND 36 THEREAFTER FOR COUPLES WITH TAXABLE INCOME ABOVE 140000 115000 FOR INDIVIDUALS AND TO 353 THIS YEAR AND 39 THEREAFTER FOR COUPLES AND INDIVIDUALS WITH TAXABLE INCOME ABOVE 250000 CLINTON KEEP TOP CAPITALGAINS TAX RATE AT 28 HALVE RATE FOR CERTAIN INVESTMENTS IN SMALL COMPANIES CLINTON SUBJECT WAGES AND SELFEMPLOYMENT EARNINGS ABOVE 135000 TO 29 MEDICARE PAYROLL TAX HOUSE SAME EFFECTIVE 1/1/94 SENATE SAME EFFECTIVE 1/1/94 CLINTON TAX 85 INSTEAD OF THE CURRENT 50 OF BENEFITS PAID TO COUPLES WITH INCOME ABOVE 32000 AND INDIVIDUALS WITH INCOME ABOVE 25000 HOUSE SAME EFFECTIVE 1/1/94 SENATE TAX 85 OF BENEFITS PAID TO COUPLES WITH INCOME ABOVE 40000 AND INDIVIDUALS WITH INCOME ABOVE 32000 EFFECTIVE 1/1/94 CLINTON NO PROVISION HOUSE LIFT THRESHOLD OVER WHICH EMPLOYERS MUST PAY SOCIAL SECURITY TAX NOW 50 A QUARTER TO 1800 A YEAR AND INDEX FOR INFLATION EFFECTIVE 1/1/94 SENATE NO PROVISION CLINTON IMPOSE BROAD ENERGY TAX AT 257 CENTS PER MILLION BTUS WITH SURCHARGE OF 342 CENTS ON PETROLEUM PRODUCTS PHASED IN OVER THREE YEARS BEGINNING 7/1/94 THE TAX WOULD BE 75 CENTS A GALLON ON GASOLINE HOUSE IMPOSE SIMILAR ENERGY TAX AT 268 CENTS PER MILLION BTU WITH 342CENT PETROLEUM SURCHARGE ALSO IMPOSE ON IMPORTS OF ENERGYINTENSIVE PRODUCTS SAME EFFECTIVE DATES THE TAX WOULD BE 76 CENTS A GALLON ON GASOLINE CLINTON INCREASE TOP CORPORATE TAX RATE TO 36 FROM 34 LIGHTEN ALTERNATIVE MINIMUM TAX HOUSE INCREASE TO 35 EFFECTIVE 1/1/93 LIGHTEN ALTERNATIVE MINIMUM TAX AS CLINTON PROPOSED SENATE INCREASE TO 35 EFFECTIVE 1/1/93 LIGHTEN ALTERNATIVE MINIMUM TAX LESS THAN CLINTON PROPOSED CLINTON CREATE INVESTMENT TAX CREDIT TEMPORARY FOR BIG FIRMS PERMANENT FOR SMALL FIRMS HOUSE NO INVESTMENT TAX CREDIT ALLOW SMALL BUSINESSES TO WRITE OFF 25000 IN EQUIPMENT PURCHASES UP FROM CURRENT 10000 EFFECTIVE 1/1/93 SENATE NO INVESTMENT TAX CREDIT ALLOW SMALL BUSINESSES TO WRITE OFF 15000 IN EQUIPMENT PURCHASES EFFECTIVE 1/1/93 CLINTON DENY DEDUCTIONS FOR CLUB DUES SPOUSES' TRAVEL LOBBYING AND WITH EXCEPTIONS EXECUTIVE PAY OVER 1 MILLION HOUSE SAME EFFECTIVE 1/1/94 SENATE SAME BUT TOUGHER RULES FOR LOBBYING DEDUCTIONS CLINTON ALLOW DEDUCTION OF 50 INSTEAD OF CURRENT 80 OF BUSINESS MEALS AND ENTERTAINMENT HOUSE SAME EFFECTIVE 1/1/94 SENATE SAME AS HOUSE CLINTON LIMIT TAX CREDIT TO 60 OF WAGES PAID HOUSE SAME EFFECTIVE 1/1/94 SENATE LIMIT TAX CREDIT BUT NOT AS MUCH AS HOUSE CLINTON INCREASE TAX ON ROYALTIES FROM ABROAD HOUSE NO PROVISION SENATE NO PROVISION CLINTON REQUIRE CERTAIN US FIRMS TO PAY TAXES ON FOREIGN PROFITS BEFORE THEY ARE REPATRIATED SENATE REQUIRE FIRMS TO PAY TAXES ON SUCH EARNINGS BUT NOT AS MUCH AS CLINTON PROPOSAL CLINTON PROVIDE LIMITED PASSIVE LOSS DEDUCTION FOR REAL ESTATE PROFESSIONALS EXTEND DEPRECIATION PERIOD FOR COMMERCIAL PROPERTY TO 37 YEARS CURRENT LAW IS 31 YEARS HOUSE PROVIDE MORE GENEROUS PASSIVE LOSS DEDUCTION EXTEND DEPRECIATION PERIOD TO 39 YEARS SENATE LIMIT PASSIVE LOSS TO CLINTON PROPOSAL EXTEND DEPRECIATION PERIOD TO 38 YEARS CLINTON NO PROVISION CURRENT LAW GENERALLY PROHIBITS DEPRECIATION OF GOODWILL AND SOME OTHER INTANGIBLE ASSETS HOUSE ALLOW 14YEAR DEPRECIATION OF GOODWILL AND CERTAIN OTHER INTANGIBLE ASSETS ACQUIRED IN TAKEOVERS SENATE ALLOW 14YEAR DEPRECIATION OF 75 OF VALUE OF SUCH ASSETS WITH SPECIAL PROVISIONS FOR SPORTS MOVIE SOFTWARE AND SECONDARY MORTGAGE INDUSTRIES CLINTON NO PROVISION HOUSE REPEAL ON BOATS AIRCRAFT JEWELRY AND FURS ADJUST THRESHOLD FOR TAX ON EXPENSIVE CARS FOR INFLATION EFFECTIVE 1/1/93 SENATE SAME AS HOUSE CLINTON MAKE MORE GENEROUS BY 286 BILLION OVER FIVE YEARS MAKE AVAILABLE TO WORKING POOR WITHOUT CHILDREN SENATE MAKE MORE GENEROUS BY ONLY 182 BILLION OVER FIVE YEARS EXCLUDE WORKING POOR WITHOUT CHILDREN CLINTON DESIGNATE 10 EMPOWERMENT ZONES WITH SEVERAL TAX INCENTIVES AND 100 MORE ENTERPRISE COMMUNITIES WITH FEWER TAX BREAKS SENATE NO PROVISION 9306180016 930618 AMEX SEAT IS SOLD FOR 132000 NEW YORK THE AMERICAN STOCK EXCHANGE SAID A SEAT WAS SOLD FOR 132000 UP FROM THE PREVIOUS SEAT SALE OF 98000 FEB 11 SEATS ARE CURRENTLY BID AT 110000 AND OFFERED AT 155000 9306180015 930618 POLITICS & POLICY HOUSE APPROVES AID FOR RUSSIA EXSOVIET STATES PACKAGE TOTALING 25 BILLION NOW GOES TO THE SENATE BIPARTISAN EFFORT CITED BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE IN A RARE BIPARTISAN VICTORY FOR THE CLINTON ADMINISTRATION APPROVED A LANDMARK 25 BILLION PACKAGE OF ASSISTANCE FOR RUSSIA AND OTHER INDEPENDENT STATES OF THE FORMER SOVIET UNION BY A 289140 MARGIN THE LEADERSHIP BEAT BACK AN EFFORT TO STRIP 16 BILLION FROM THE INITIATIVE WHICH NOW GOES TO THE SENATE AS PART OF A LARGER FOREIGNAID BILL DEMOCRATS VOTING BETTER THAN 41 FOR THE PACKAGE ACCOUNTED FOR THE PRESIDENT'S CORE SUPPORT BUT THE SUCCESS ALSO WAS DUE TO TOP REPUBLICANS WHO HELPED DELIVER 79 VOTES FOR THE MEASURE WE HAVE WAITED 45 YEARS FOR THIS MOMENT SAID MAJORITY LEADER RICHARD GEPHARDT APPEALING TO CONSERVATIVES AND LIBERALS IN HIS OWN PARTY TO MEASURE THE COST OF THE PACKAGE AGAINST THE COST OF THE LONG COLD WAR IF WE FAIL WE WILL GO BACK TO A TIME AND SET OF EXPENDITURES THAT WILL MAKE US HEARTSICK AS APPROVED YESTERDAY THE RUSSIAN AID PACKAGE DRAWS FROM A MIX OF PENTAGON AND MORE TRADITIONAL FOREIGNAID ACCOUNTS FOR THIS FISCAL YEAR AND THE NEW BUDGET CYCLE BEGINNING OCT 1 NEARLY 40 OF THE TOTAL WOULD COME FROM THE MILITARY AND THAT COMMITMENT IS LIKELY TO COMPOUND THE PENTAGON'S DIFFICULTIES AS IT RATCHETS DOWN ON ITS OWN SPENDING NEXT YEAR WHATEVER THE SOURCE THE IMPACT WILL ADD TO THE DEFICIT ALREADY FACING THE TREASURY WHILE PROPONENTS SOUGHT TO FOCUS ATTENTION YESTERDAY ON CUTS IN FOREIGNAID ACCOUNTS THE UNDERLYING BILL REPRESENTS A NET COMMITMENT OF 146 BILLION IN NEW FUNDS FOR THE COMING YEAR YOU'RE GOING TO HAVE TO BORROW TO DO THIS AND OUR CHILDREN ARE GOING TO HAVE TO PAY IT BACK SAID REP SONNY CALLAHAN R ALA CHIDING HIS FELLOW CONSERVATIVES ON THE AID TO RUSSIA CAUGHT IN THE BACKWASH INTERNATIOAL FINANCIAL INSTITUTIONS WERE AMONG THE MOST VULNERABLE THE HOUSE BILL CUT NEARLY A HALF BILLION DOLLARS ELSEWHERE FROM THE PRESIDENT'S REQUESTS FOR MULTILATERAL ECONOMIC ASSISTANCE FUNDING FOR THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT WAS ELIMINATED ENTIRELY AND REPUBLICANS ONLY NARROWLY FAILED IN AN EFFORT TO STRIP AN ESTIMATED 558 MILLION IN NEW CALLABLE CAPITAL PROMISED TO THE WORLD BANK THE RAID WAS LED BY REP JOHN KASICH WHO CITED ENCOURAGEMENT FROM TEXAS BILLIONAIRE ROSS PEROT BY INVOKING THE BANK'S MARBLE FLOORS AND FIRSTCLASS AIR FARES THE OHIO REPUBLICAN FELL ONLY A FEW VOTES SHORT ON THE 215211 ROLL CALL AMONG DEMOCRATS THE LEADERSHIP OF THE BLACK CAUCUS WAS PROMINENT IN OPPOSING THE RUSSIANAID EXPENDITURES AND IN CONTRAST WITH THE EUPHORIA OF THE FIRST DAYS OF THE ADMINISTRATION THE BUDGET CHOICES OFTEN POSE A PAINFUL EXERCISE FOR DEMOCRATS AS THE MAJORITY PARTY PROPONENTS OF THE RYAN WHITE PROGRAM TO ASSIST STATE AND LOCAL GOVERNMENTS IN THE TREATMENT OF AIDS PATIENTS WERE RECENTLY FORCED TO TAKE 100 MILLION FROM WHAT HAD BEEN PROPOSED FOR THE POPULAR HEAD START PROGRAM THAT BENEFITS PRESCHOOL LOWINCOME CHILDREN AND AT ANOTHER LEVEL THE PRESIDENT'S INVESTMENT INITIATIVES IN ENERGY RESEARCH FOR EXAMPLE HAS SET OFF COMPETITION AMONG CORPORATIONS SEEKING TO PROTECT THEIR OWN CONTRACTS IN THE RESULTING SHAKEUP THE HOUSE APPROPRIATIONS COMMITTEE YESTERDAY APPROVED 620 MILLION SOUGHT BY THE ADMINISTRATION TO CONTINUE THE SUPERCONDUCTING SUPERCOLLIDER BUT THE PANEL BALKED AT COMMITTING TO THE CONSTRUCTION OF A NEW RESEARCH REACTOR FOR THE ENERGY DEPARTMENT'S ADVANCED NEUTRON SOURCE PROJECT IN TENNESSEE THE HOME STATE OF VICE PRESIDENT AL GORE REP THOMAS BEVILL D ALA WHO OVERSEES THE ENERGY BUDGET PHONED MR GORE AFTER THE MEETING THOUGH THE PANEL AGREED THAT DESIGN WORK COULD PROCEED ON THE 3 BILLION PROJECT MR BEVILL SAID THE BILL MAKES NO COMMITMENT TO CONSTRUCTION BY CONTRAST CORPORATIONS WITH EXISTING CONTRACTS WERE SUCCESSFUL IN FENDING OFF CUTS AND TERMINATIONS SOUGHT BY THE WHITE HOUSE THE PANEL ADDED BACK 25 MILLION FOR A SPACE REACTOR PROGRAM OVERSEEN BY MARTIN MARIETTA AEROSPACE IN THE HOME CITY OF PUBLIC WORKS COMMITTEE CHAIRMAN NORMAN MINETA D CALIF AND SAN DIEGOBASED GENERAL ATOMICS PRESERVED 12 MILLION FOR ITS GASTURBINE MODULAR HELIUM REACTOR WHICH HAD RECEIVED NO MONEY IN THE PRESIDENT'S BUDGET THE SAME SCRAMBLE FOR FUNDS WAS REPLICATED LAST NIGHT WHEN THE FULL SENATE VOTED TO RAID A HALFDOZEN ACCOUNTS TO COME UP WITH 181 MILLION TO REPLENISH THE SMALL BUSINESS ADMINISTRATION'S LOAN PROGRAM WHICH HAS BEEN EFFECTIVELY SHUT DOWN SINCE LATE APRIL 9306180014 930618 SPECIAL COUNSEL FINDS NO PROOF THAT US STOLE SOFTWARE IN '80S WASHINGTON A REPORT WRITTEN BY A SPECIAL COUNSEL APPOINTED BY THE BUSH ADMINISTRATION SAID THERE IS NO CREDIBLE EVIDENCE THE JUSTICE DEPARTMENT STOLE COMPUTER SOFTWARE DURING THE REAGAN ADMINISTRATION ACCORDING TO THE 267PAGE REPORT BY FORMER FEDERAL JUDGE NICHOLAS BUA THE EVIDENCE DOESN'T SUPPORT THE ALLEGATIONS THAT THE SOFTWARE WAS OBTAINED THROUGH FRAUD TRICKERY AND DECEIT AS A FEDERAL BANKRUPTCY JUDGE RULED IN 1988 THE BANKRUPTCY COURT RULING WAS UPHELD IN 1989 BY A FEDERAL DISTRICT COURT WHICH ALSO ORDERED THE GOVERNMENT TO PAY 61 MILLION IN DAMAGES TO INSLAW INC THE WASHINGTONBASED COMPANY THAT PRODUCED THE CASE MANAGEMENT SOFTWARE USED IN US ATTORNEYS' OFFICES THE DISTRICT COURT RULING WAS OVERTURNED BY THE US CIRCUIT COURT OF APPEALS WHICH SAID THE BANKRUPTCY COURT LACKED JURISDICTION THE DAMAGE AWARD WAS ALSO CANCELED THE APPEALS COURT HOWEVER DIDN'T RULE ON THE MERITS OF INSLAW'S CLAIMS INSLAW OWNERS CLAIMED THAT UNDER FORMER ATTORNEY GENERAL EDWIN MEESE DEPARTMENT OFFICIALS WERE INVOLVED IN A CONSPIRACY TO STEAL THE SOFTWARE AND LATER SELL IT TO THE GOVERNMENT THE BUA REPORT DOESN'T CLOSE THE INSLAW MATTER ASSOCIATE ATTORNEY GENERAL WEBSTER HUBBELL SENT THE REPORT TO INSLAW'S LAWYERS AND TO MEMBERS OF THE HOUSE AND SENATE JUDICIARY COMMITTEES ASKING THEM FOR COMMENTS THAT YOU THINK WOULD BE HELPFUL IN BRINGING THE INSLAW MATTER TO A RESOLUTION HE ASKED THAT THEY SUBMIT THEIR REMARKS BY AUG 1 NEITHER INSLAW'S OWNERS NOR THEIR ATTORNEYS COULD BE REACHED TO COMMENT 9306180013 930618 CREDIT MARKETS BOND PRICES END NARROWLY MIXED IN SLOW SESSION AS YIELD ON US 30YEAR ISSUE REMAINS AT 681 BY THOMAS D LAURICELLA AND TERENCE DONNELLY SPECIAL TO THE WALL STREET JOURNAL NEW YORK IT WAS ANOTHER QUIET DAY OF TRADING FOR THE BOND MARKET WITH PRICES ENDING NARROWLY MIXED THE ONLY ACTIVITY OF SIGNIFICANCE YESTERDAY WAS A BRIEF SPURT OF TRADING RUMORED TO BE RELATED TO THE PROVINCE OF ONTARIO'S 2 BILLION GLOBAL SEVENYEAR BOND OFFERING DEALERS SAID SOME TRADERS WERE BUYING FIVEYEAR AND 10YEAR TREASURYS AS PART OF A COMPLEX INTERESTRATE SWAP WITH ONTARIO IN AN INTERESTRATE SWAP TWO BORROWERS MAY AGREE TO EXCHANGE RESPONSIBILITY FOR MAKING INTEREST PAYMENTS ON DEBT ISSUES USUALLY A SWAP WOULD INVOLVE BUYING OF THE EXACT MATURITY OF TREASURYS LAST MONTH HOWEVER THE TREASURY SAID IT WILL NO LONGER ISSUE NEW SEVENYEAR NOTES AS A RESULT DEALERS WHO NEED SEVENYEAR TREASURYS FOR LONG PERIODS OF TIME MUST CREATE SYNTHETIC ONES BY BLENDING TREASURYS WITH FIVEYEAR AND 10YEAR MATURITIES ASIDE FROM THE RIPPLES SURROUNDING THE ONTARIO DEAL LITTLE ELSE TRANSPIRED AND TRADERS WERE MORE THAN WILLING TO SHRUG OFF A NUMBER OF WHAT NORMALLY WOULD HAVE BEEN MARKETMOVING FACTORS MOST NOTABLY DEALERS LARGELY IGNORED A STEEP RISE IN COMMODITY PRICES COMMODITY PRICES WERE VERY STRONG AND YET THE BOND MARKET DIDN'T EVEN FLINCH SAID JAY GOLDINGER A TRADER AT CAPITAL INSIGHT INC IN BEVERLY HILLS CALIF THE WIDELY WATCHED COMMODITY RESEARCH BUREAU INDEX SURGED ENDING 215 POINTS HIGHER AT 20558 TRADERS ALSO BRUSHED ASIDE SEVERAL ECONOMIC REPORTS THE LABOR DEPARTMENT REPORTED WEEKLY JOBLESS CLAIMS WERE STEADY AT 344000 IN LINE WITH EXPECTATIONS THE MERCHANDISE TRADE DEFICIT MEANWHILE CAME IN AT 1049 BILLION WIDER THAN EXPECTED BUT STILL UNABLE TO ATTRACT MUCH INTEREST SOME LIGHT BUYING WAS PROMPTED BY THE PHILADELPHIA FEDERAL RESERVE'S MONTHLY REPORT ON LOCAL BUSINESS ACTIVITY THE PHILADELPHIA FED BUSINESS ACTIVITY INDEX WAS WEAKER THAN MOST ECONOMISTS HAD EXPECTED REGISTERING 65 IN JUNE COMPARED WITH 113 IN MAY A NEGATIVE READING REFLECTS DECLINING MANUFACTURING ACTIVITY IN THE REGION LATE IN THE DAY THERE WAS ONLY A MUTED RESPONSE TO LARGERTHANEXPECTED INCREASES IN SOME OF THE FEDERAL RESERVE'S MONEY SUPPLY MEASURES THE FED REPORTED M2 THE MOST CLOSELY WATCHED FIGURE JUMPED 96 BILLION AND M3 GAINED 106 BILLION M1 HOWEVER SLIPPED 19 BILLION MARILYN SCHAJA A MONEY MARKET ECONOMIST AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP SAID THE PHILADELPHIA FED REPORT WAS THE MOST SIGNIFICANT OF THE FIGURES FOR THE ECONOMY IT REALLY INDICATES THAT THE MANUFACTURING SECTOR HAS MAJOR PROBLEMS MS SCHAJA SAID BUT NONE OF THE DATA WERE ENOUGH TO CHANGE THE OUTLOOK FOR THE ECONOMY OR THE MARKET EVEN ON A SHORTTERM BASIS WITH THE INFLATION SCARE OF RECENT WEEKS HAVING PASSED AND TAKEN WITH IT THE THREAT OF AN IMMEDIATE FED TIGHTENING MARKET WATCHERS SAID TREASURYS ARE LIKELY TO BE CONFINED TO RANGES FOR SOME TIME THERE REALLY ARE NOT ANY STRONG FUNDAMENTAL REASONS TO HAVE A STRONG MARKET OPINION EITHER WAY SAID WARD MCCARTHY A MANAGING DIRECTOR AT STONE & MCCARTHY RESEARCH ASSOCIATES INC THAT'S PROBABLY NOT GOING TO CHANGE UNTIL YOU SEE THE JUNE EMPLOYMENT DATA ON JULY 2 DONALD TRUMP'S TWOPART BOND OFFERING FROM ONE OF HIS ATLANTIC CITY CASINOS IS EXPECTED TO SELL WELL INVESTORS SAY DESPITE RESIDUAL CONCERNS ABOUT OVERSATURATION OF THE GAMING INDUSTRY AND THE STRUCTURE OF ONE OF THE TWO CLASSES THE DEAL A 375 MILLION ISSUE BY TRUMP'S ATLANTIC CITY NJ TRUMP PLAZA CASINO HOTEL IS EXPECTED TO BE COMPLETED TODAY SAYS THE ISSUE'S UNDERWRITER MERRILL LYNCH & CO MEANWHILE STRONG DEMAND GREETED THE CANADIAN PROVINCE OF ONTARIO'S GLOBAL BOND OFFERING SUGGESTING THAT INVESTORS HAVE PUT ASIDE FOR NOW CONCERNS ABOUT THE PROVINCE'S ABILITY TO GET ITS FINANCES IN ORDER THE ONTARIO AND TRUMP OFFERINGS OVERSHADOWED OTHER DEALS PRICED YESTERDAY WITH ISSUANCE TOTALING MORE THAN 42 BILLION BUT BECAUSE MUCH OF THE DEMAND FOR THE ONTARIO'S GLOBAL ISSUE WAS CENTERED IN EUROPE AND THE FAR EAST US INVESTORS WERE BETTER ABLE TO FOCUS ON THE SESSION'S OTHER OFFERINGS SYNDICATE OFFICIALS SAID THE TRUMP ISSUE IS EXPECTED TO INCLUDE 315 MILLION OF EIGHTYEAR FIRSTMORTGAGE NOTES TARGETED TO YIELD FROM 1125 TO 1150 IT ALSO INCLUDES 60 MILLION OF 10YEAR PAYINKIND NOTES PRICED TO YIELD 1 TO 15 PERCENTAGE POINTS ABOVE THE YIELD ON THE FIRSTMORTGAGE NOTES THESE PIK SECURITIES ALLOW THE ISSUER TO MAKE INTEREST PAYMENTS IN THE FORM OF ADDITIONAL SECURITIES INSTEAD OF CASH THEY GENERALLY YIELD MUCH MORE THAN A COMPARABLE CASHPAYING JUNK BOND THE MORTGAGE ISSUE IS BY TRUMP PLAZA FUNDING INC AND THE PIK ISSUE IS BY TRUMP PLAZA HOLDING ASSOCIATION ALTHOUGH MR TRUMP AND HIS CASINOS HAVE HAD SIGNIFICANT FINANCIAL TROUBLES IN THE PAST SOME INVESTORS SAY THEY CONSIDER THE TRUMP OFFERING ATTRACTIVE FOR A NUMBER OF REASONS ONE POTENTIAL BUYER OF THE TRUMP PLAZA MORTGAGE NOTES IS KEVIN MATTHEWS A PORTFOLIO MANAGER AT VAN KAMPEN MERRITT MR MATTHEWS SAID THE NOTES ARE CHEAP WHICH IN BOND MARKET PARLANCE MEANS THE YIELD IS RELATIVELY HIGH GIVEN CURRENT MARKET CONDITIONS AND OTHER CIRCUMSTANCES BUT HE ALSO NOTES THAT THE FIRSTMORTGAGE NOTES ARE SECURED WITH THE CASINO ITSELF WHICH SOME ANALYSTS BELIEVE IS WORTH MORE THAN THE CASINO'S OUTSTANDING DEBT IN A PERIOD OF DECLINING INTEREST RATES PEOPLE ARE REACHING FOR YIELD WHEREVER THEY CAN FIND IT EVEN WHEN IT MEANS BUYING BONDS THAT THEY MIGHT NOT HAVE PURCHASED A YEAR AGO SAID DAVID FEINMAN A JUNK TRADER AT JEFFERIES & CO FRED CAVANAUGH A HIGHYIELD PORTFOLIO MANAGER FOR JOHN HANCOCK ADVISORS' STATEGIC INCOME FUND NOTES THAT IN TERMS OF THE FUNDAMENTALS OF THE CREDIT THE TRUMP PLAZA CASINO HAS BEEN A PRETTY STRONG PERFORMER SINCE IT WENT THROUGH ITS RESTRUCTURING HOWEVER CASH FLOW FOR THE TRUMP PLAZA CASINO IN THE LAST 12 MONTHS APPEARED TO SLOW MR CAVANAUGH ADDED WHILE INVESTORS APPEAR CONFIDENT THAT THE TRUMP CASINOS WON'T FALTER AGAIN SOON SOME EXPRESSED CONCERN ABOUT THE STRUCTURE OF THE PAYINKIND NOTES WHICH ARE EXPECTED TO BE PRICED CLOSE TO PAR OR 100 THESE ISSUES OFFER NEITHER THE CASH INCOME STREAM OF CONVENTIONAL JUNK ISSUES NOR THE HEAVILY DISCOUNTED PRICE OF ZEROCOUPON SECURITIES THEY SAY IT SEEMS LIKE YOU'RE GETTING BEAT UP ON BOTH SIDES SAID JOHN HANCOCK'S MR CAVANAUGH YOU GIVE UP THE CASH PAYMENTS AND PAY FULL PRICE FOR IT UNDAUNTED UNDERWRITERS RECENTLY BOOSTED THE SIZE OF THE PAYINKIND CLASS WHILE DECREASING THE SIZE OF THE MORTGAGE NOTE ISSUE BOTH CLASSES ARE NONCALLABLE FOR FIVE YEARS THE EIGHTYEAR NOTES ARE RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEB BY STANDARD & POOR'S CORP THE PIKS ARE RATED CAA BY MOODY'S AND TRIPLECPLUS BY S&P OTHER POTENTIAL BUYERS ALSO EXPRESSED WORRIES THAT THE GAMING INDUSTRY IS QUICKLY BECOMING OVERSATURATED WITH NEW GAMBLING VENUES SUCH AS RIVERBOATS AND INDIAN RESERVATIONS PRICES OF MUNICIPAL BONDS FINISHED WITH GAINS OF 1/8 TO 1/4 POINT AFTER A CALM SESSION IT APPEARS THAT MARKET PARTICIPANTS ARE JUST STARTING TO LATCH ON TO JULY 1 AS AN IMPORTANT DATE FOR MUNIS SAID A NEW YORK TRADER MASSIVE BOND CALLS WILL BE MADE ON JULY 1 BY ISSUERS THAT WANT TO REDEEM HIGHYIELDING SECURITIES AND REPLACE THEM WITH LESSEXPENSIVE DEBT BEFORE SUCH BIG CALL DATES MARKET PARTICIPANTS TEND TO STOCK UP ON MUNIS IN PREPARATION FOR THE DRAINAGE OF SUPPLY AFTER ROUGHLY 10 BILLION OF SECURITIES WERE CALLED LAST JULY 1 TAXEXEMPT BOND PRICES SURGED FOR WEEKS AMONG ACTIVELY TRADED BONDS THE OMAHA NEB PUBLIC POWER DISTRICT'S 550 ELECTRIC REVENUE BONDS OF 2017 ENDED 1/8 HIGHER AT 97 5/8 TO YIELD 567 IN THE PRIMARY MARKET THINGS FINALLY QUIETED DOWN AFTER MORE THAN 5 BILLION OF PRICINGS IN THE PREVIOUS TWO SESSIONS THE LARGEST ISSUE OFFERED YESTERDAY WAS SACRAMENTO COUNTY CALIF'S 285 MILLION OF 1993 TAX AND REVENUE ANTICIPATION NOTES THE NOTES WHICH HAVE A 300 COUPON WERE ALL PRICED TO YIELD 245 ON JULY 29 1994 THEY HAVE BEEN RATED MIG1 BY MOODY'S AND SP1PLUS BY S&P PRICES OF MORTGAGEBACKED SECURITIES ENDED 1/16 TO 1/8 POINT HIGHER IN MODERATE TRADING AMONG 7 SECURITIES FOR JULY DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 1/8 HIGHER AT 101 8/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD SECURITIES ENDED AT 101 11/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES ENDED AT 101 6/32 BOTH FOR GAINS OF 1/16 LINDA LOWELL VICE PRESIDENT OF MORTGAGE INVESTMENT STRATEGIES AT SMITH BARNEY HARRIS UPHAM & CO NOTED THAT INVESTORS HAVE BEEN SORTING OUT ATTITUDES TOWARD MORTGAGEBACKED SECURITIES WITH MANY CONCLUDING THAT IT IS LESS LIKELY SECURITIES WILL BE PAID EARLY BECAUSE OF MORTGAGE LOAN REFINANCINGS AS A RESULT ACTIVITY HAS RISEN INVESTORS HOLDING SECURITIES THAT ARE PAID EARLY MAY SUFFER CAPITAL LOSSES OR BE FORCED TO REINVEST AT LOWER COUPON RATES MORTGAGE PREPAYMENTS USUALLY RISE WHEN LONGTERM INTEREST RATES DECLINE THE 30YEAR MORTGAGE RATE HAS HIT ITS LOWEST LEVEL IN EIGHT WEEKS AVERAGING 738 FOR THIS WEEK ACCORDING TO FREDDIE MAC'S PRIMARY MORTGAGE MARKET SURVEY BUT ANALYSTS PREDICT THAT PREPAYMENTS WILL PEAK IN JUNE AND THEN DECLINE INTO SUMMER 9306180012 930618 TECHNOLOGY ADOBE STOCK TAKES WILD RIDE ON NEWS ABOUT EARNINGS BY MICHAEL J YBARRA STAFF REPORTER OF THE WALL STREET JOURNAL IT'S BEEN QUITE A RIDE FOR ADOBE SYSTEMS INC THIS WEEK LIKE THE STEADY CLIMB TO THE TOP ON A ROLLER COASTER ADOBE STOCK CRESTED TUESDAY AT A 52WEEK HIGH OF 74 WITH THE RELEASE OF THE COMPANY'S PROMISING NEW ACROBAT SOFTWARE WHICH TRANSMITS DOCUMENTS BETWEEN DIFFERENT COMPUTER SYSTEMS THEN CAME THE DROP THE STOCK FELL 3 AFTER THE HOOPLA OF THE NEW PRODUCT DISSIPATED TUMBLING 4 MORE YESTERDAY IN EARLY TRADING WHEN ADOBE POSTED FISCAL SECONDQUARTER EARNINGS THAT HAD DECLINED 5 THE RESULTS WERE GENERALLY IN LINE WITH EXPECTATIONS BUT ANALYSTS WERE SURPRISED BY ESSENTIALLY FLAT ROYALTIES IN THE MOUNTAIN VIEW CALIF COMPANY'S CASHCOW PRINTER SEGMENT THE STOCK RECOVERED TO CLOSE UP 375 CENTS AT 69375 IN OVERTHECOUNTER TRADING IT'S EASIER TO SELL NOW AND FIGURE OUT LATER SAID ANALYST MARY A MCCAFFREY WITH ALEX BROWN & SONS SHE SAID THE STOCK WHICH HAS TRADED FROM THE LOW 40S TO THE LOW 70S OVER THE PAST YEAR WAS VULNERABLE TO ANY NEGATIVE NEWS SHE PREDICTED THAT THE NEXT QUARTER'S REVENUE WOULD SLIP BECAUSE OF STARTUP COSTS OF ACROBAT BUT THAT THE FOURTH QUARTER WOULD BE THE START OF ACCELERATING GROWTH IN THE SECOND QUARTER ENDED MAY 28 NET INCOME DECLINED TO 145 MILLION OR 62 CENTS A SHARE FROM 152 MILLION OR 65 CENTS A SHARE A YEAR EARLIER REVENUE GREW 14 TO 796 MILLION FROM 696 MILLION THE COMPANY ATTRIBUTED THE DISPARITY TO HIGH COSTS FOR RESEARCH AND DEVELOPMENT WHICH ROSE MORE THAN THREEFOLD OVER REVENUE GROWTH WHILE EARNINGS WERE WITHIN EXPECTATIONS THE MIX CONFOUNDED ANALYSTS LICENSING FEES ROSE ONLY SLIGHTLY TO 384 MILLION FROM 381 MILLION A YEAR EARLIER COMPETITION IN THE PRINTER MARKET HIT THE COMPANY HARD AND ADOBE CLONES HAVE TAKEN A FURTHER TOLL ON MARGINS BRUCE NAKAO ADOBE'S CHIEF FINANCIAL OFFICER SAID THE COMPANY PLANS MORE AGGRESSIVE MARKETING FOR PRINTERS AND EXPECTS A BOOST IN THAT SEGMENT AS A SIDE EFFECT FROM ACROBAT SALES IN GENERAL WE'RE STILL OPTIMISTIC ABOUT THE POSTSCRIPT PRINTER MARKET HE SAID IN AN INTERVIEW IT'S A MATURE MARKET BUT IT'S STILL VERY PROFITABLE MAKING UP FOR THE LICENSING SHORTFALL WAS APPLICATION REVENUE WHICH JUMPED 31 TO 412 MILLION FROM 315 MILLION POWERED MOSTLY BY THE INTRODUCTION OF ADOBE PHOTOSHOP 25 FOR COMPUTERS USING THE WINDOWS AND MACINTOSH OPERATING SYSTEMS MR NAKAO SAID THE COMPANY'S GOAL OVER THE NEXT YEAR OR SO IS THE REDUCTION OF RESEARCH AND DEVELOPMENT SPENDING TO 14 TO 15 OF REVENUE AIMING FOR OPERATING MARGIN PERCENTAGES IN THE HIGH 20SLOW 30S FOR THE SIXMONTH PERIOD NET ROSE 5 TO 299 MILLION OR 129 A SHARE FROM 285 MILLION OR 122 A SHARE REVENUE INCREASED 12 TO 1482 MILLION FROM 1322 MILLION 9306180011 930618 WORLD MARKETS TOKYO PRICES FINISH MIXED AFTER A TUG OF WAR BY POLITICAL RATE SCENARIOS LONDON STOCKS FALL A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES IN TOKYO ENDED MIXED THURSDAY IN THIN DEALINGS AS BULLISH RUMORS ABOUT INTEREST RATES BUMPED UP AGAINST CONTINUED WORRIES ABOUT JAPAN'S POLITICAL SITUATION LONDON SHARES FELL AFTER HOPES FOR LOWER EUROPEAN INTEREST RATES WERE DASHED WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10608 DOWN 029 REFLECTING DECREASES IN ASIA/PACIFIC MARKETS AND AN INCREASE IN MARKETS IN THE AMERICAS AND EUROPE FOREST PRODUCTS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 13498 UP 291 OR 22 WITH LOUISIANA PACIFIC OF THE US POSTING A 42 GAIN IN ITS LOCAL CURRENCY PLANTATION STOCKS TRAILED AT 13740 DOWN 453 OR 319 WITH HIGH & LOW OF MALAYSIA SLIDING 79 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH LOST 14346 POINTS WEDNESDAY ROSE 2309 TO 1992551 ENDING A THREESESSION LOSING STREAK ON FRIDAY THE NIKKEI INDEX FELL 24737 POINTS TO CLOSE THE MORNING SESSION AT 1967814 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 300 MILLION SHARES DOWN FROM 3689 MILLION SHARES ON WEDNESDAY LOSERS TOPPED GAINERS 593383 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SKIDDED 1974 POINTS WEDNESDAY FELL 655 TO 159359 POLITICS TOOK CENTER STAGE WITH PRIME MINISTER KIICHI MIYAZAWA AND HIS CABINET FACING A NOCONFIDENCE VOTE IN THE DIET OR PARLIAMENT AFTER APPARENTLY GIVING UP ON GETTING A POLITICAL REFORM PACKAGE THROUGH THE LEGISLATURE IN THE SESSION THAT ENDS SUNDAY BUT THE MARKET FOCUS IN THE AFTERNOON SESSION SWITCHED AS PARTICIPANTS CONCLUDED THAT EITHER A FALL OF THE GOVERNMENT OR A DISSOLUTION OF PARLIAMENT FOR A SNAP ELECTION WOULD BE A QUICK CUT IN JAPAN'S OFFICIAL DISCOUNT RATE TO KEEP ECONOMIC RECOVERY EFFORTS FROM DERAILING IN THE MORNING SHARE PRICES LOST ABOUT 1 ON THE POLITICAL JITTERS BUT THE RATECUT RUMORS LIFTED PRICES IN LATE TRADING IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 73 POINTS TO 28757 NEAR THE INTRADAY LOW OF 28746 THE FT 30STOCK INDEX DROPPED 47 POINTS TO 22485 VOLUME WAS 5554 MILLION SHARES COMPARED WITH 6073 MILLION SHARES A DAY EARLIER AS SPORTING EVENTS SUCH AS THE ROYAL ASCOT HORSE RACE LIMITED TRADING THE 100STOCK INDEX ROSE A BIT BEFORE THE BRITISH GOVERNMENT REPORTED AN UNEXPECTED DROP IN MAY UNEMPLOYMENT SUGGESTING THAT THE ECONOMIC RECOVERY IS CONTINUING AND THAT A CUT IN THE BASE LENDING RATE NOW 6 WASN'T NEEDED GERMANY MEANWHILE PUNCTURED BRITAIN'S RATEREDUCTION HOPES AS THE BUNDESBANK THE CENTRAL BANK DECIDED TO LEAVE ITS INTEREST RATES UNCHANGED A GERMAN REDUCTION COULD HAVE ALLOWED BRITAIN TO LOWER ITS RATES WITHOUT HURTING THE POUND FOLLOWING THE GERMAN NEWS THE LONDON MARKET DRIFTED DOWN IN FRANKFURT STOCKS FINISHED MIXED IN QUIET DEALINGS AS INVESTORS AWAITED RESULTS OF THE MEETING OF THE BUNDESBANK WHICH DIDN'T ANNOUNCE UNTIL AFTER THE MARKET CLOSED THAT INTEREST RATES WERE STEADY THE DAX 30STOCK INDEX ROSE 273 POINTS TO 169229 AFTER MOVING IN AN EXTREMELY NARROW RANGE OF 314 POINTS OF THE DAX ISSUES 17 ADVANCED AND 13 RETREATED IN AMSTERDAM PRICES WEAKENED AFTER THE DUTCH AND GERMAN CENTRAL BANKS FRUSTRATED HOPES FOR LOWER INTEREST RATES MADRID STOCKS ROSE DESPITE GERMANY'S STEADY MONETARY POLICY STOCKHOLM EQUITIES SLIPPED AFTER THE PREVIOUS DAY'S GAINS THOUGH FOREIGN DEMAND CONTINUED TO BE STRONG FOR STOCKS MADE RELATIVELY CHEAPER BY THE SWEDISH KRONA'S WEAKENING THE PAST TWO DAYS ZURICH STOCKS RALLIED ON STRONG BUYING BY DOMESTIC AND FOREIGN INVESTORS AS THE DOLLAR FIRMED IN MILAN STOCKS RALLIED AFTER SENTIMENT WAS BOOSTED BY BACKING FOR FERRUZZI FINANZIARIA BY ITS CREDITOR BANKS THE CLOUD OVER FERRUZZI'S HUGE DEBT WAS LIFTED TEMPORARILY BY THE BANKS' STATEMENT THEY WOULD LEND FULLY TO SUPPORT THE COMPANY'S RESTRUCTURING FERRUZZI'S SHARES JUMPED 106 LIRE OR 22 TO 5815 LIRE 39 US CENTS WHILE ITS AGROINDUSTRIAL AND CHEMICAL UNIT MONTEDISON SOARED 96 OR 13 TO 846 SYDNEY SHARE PRICES FIRMED WITH INTEREST CENTERED ON GOLD STOCKS HONG KONG STOCKS TUMBLED LATE IN THE SESSION AFTER BEARISH RUMORS PUMMELED A MARKET THAT ALREADY WAS SLIDING ON DISAPPOINTMENT FOLLOWING A FIFTH ROUND OF SINOBRITISH TALKS ABOUT ELECTION REFORM IN THE BRITISH COLONY SPECULATION SPREAD THAT THE TALKS HAVEN'T PRODUCED ANY PROGRESS ON THE DISPUTED ISSUE TAIPEI PRICES FELL TO A FIVEMONTH LOW ON DISAPPOINTMENT ABOUT THE TAIWAN GOVERNMENT'S INITIAL ECONOMYBOOSTING PROPOSAL WHICH WASN'T VIEWED AS AN EFFECTIVE MARKETBOOSTING MEASURE THE FINAL PROPOSAL IS TO BE ANNOUNCED BY THE END OF THE MONTH AMONG CORPORATE DEVELOPMENTS IN TOKYO OMRON ROSE 10 YEN TO 1340 YEN 1257 EVEN THOUGH THE MAKER OF CONTROL COMPONENTS SUCH AS SWITCHES AND RELAYS REPORTED THAT ITS CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SLUMPED 53 TO 938 BILLION YEN 88 MILLION FROM A YEAR EARLIER MITSUBISHI BANK FINISHED UNCHANGED AT 2670 AS BANKS WON FAVOR ON POTENTIAL CUTS IN INTEREST RATES CONSOLIDATED PROFIT CALCULATED ON US ACCOUNTING STANDARDS FOR THE YEAR ENDED MARCH 31 FELL 26 TO 14607 BILLION YEN IN LONDON SEVERN TRENT DROPPED 13 PENCE OR 26 TO 483 PENCE 725 AS THE UTILITY SECTOR WAS DRAGGED DOWN FOLLOWING A RECENT STRONG RUN THE WATER UTILITY'S PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SLIPPED 14 TO 2701 MILLION 4056 MILLION REFLECTING RESTATED YEAREARLIER RESULTS OF 274 MILLION TO COMPLY WITH NEW ACCOUNTING RULES ON GAINS AND LOSSES ON THE SALE OF BUSINESSES THE DIVIDEND WAS BOOSTED 93 TO 211 PENCE A SHARE IN FRANKFURT KLOECKNERWERKE RALLIED 260 MARKS OR 43 TO 6360 MARKS 3834 THE INSOLVENT STEEL AND ENGINEERING COMPANY TOLD SHAREHOLDERS IT WILL POST A DEEP GROUP LOSS FOR THE YEAR ENDING SEPT 30 IT DIDN'T SPECIFY ITS DEFICIT FOR THE FISCAL FIRST HALF WHEN SALES FELL 53 TO 337 BILLION MARKS 203 BILLION DAIMLERBENZ GAINED 710 OR 12 TO 60950 THE INDUSTRIAL AND AUTO COMPANY CITING OPTIMISM ABOUT ITS MERCEDESBENZ LUXURYCAR UNIT'S OUTLOOK SAID IT EXPECTS A RECOVERY IN EARNINGS FOR 1994 WHICH COULD BE DOUBLE THIS YEAR'S EXPECTED 1 BILLION MARKS 6028 MILLION A 31 DROP FROM 1992 PROFIT OF 145 BILLION MARKS WHICH IN TURN FELL 25 FROM A YEAR EARLIER 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 9306180010 930618 THE TAX PACKAGE ADVANCES MEDICARE CUTS MAY HAVE REPLACED BTU TAX BUT TAXPAYERS STILL PAY BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE 19 BILLION OF ADDITIONAL MEDICARE CUTS IN THE SENATE FINANCE COMMITTEE'S BUDGET COMPROMISE WILL PROBABLY PROMPT DOCTORS AND HOSPITALS TO RAISE PRICES FOR EVERYONE ELSE IT'S OBVIOUSLY GOING TO COST THE PRIVATE PAYERS MORE SAID ED HOWARD EXECUTIVE VICE PRESIDENT OF THE ALLIANCE FOR HEALTH REFORM A NONPARTISAN GROUP PROMOTING THE OVERHAUL OF THE US HEALTH SYSTEM TO GET THE HUGE DEFICITCUTTING BILL OUT OF THE SENATE FINANCE COMMITTEE DEMOCRATS ON THE PANEL AGREED TO REPLACE THE PRESIDENT'S BROADBASED ENERGY TAX WITH AN INCREASE IN THE LEVY ON FUELS ONLY AND TO CUT 19 BILLION MORE FROM PROJECTED SPENDING ON MEDICARE THE FEDERAL HEALTH PROGRAM FOR THE ELDERLY AND DISABLED OVER THE NEXT FIVE YEARS COMBINED WITH THE 53 BILLION OF REDUCTIONS ALREADY INCLUDED IN PRESIDENT CLINTON'S BUDGET BILL THE TOTAL CUTS IN THE GOVERNMENT'S TWO BIGGEST HEALTH PROGRAMS MEDICARE AND MEDICAID WOULD TOTAL 76 BILLION OVER THE NEXT FIVE YEARS IT'S FAR FROM CLEAR WHETHER THE REDUCTIONS WILL SURVIVE A HOUSESENATE CONFERENCE COMMITTEE THE MONEYSAVING CHANGES TO MEDICARE DREW FIRE FROM LIBERAL SENATE DEMOCRATS AT A WEDNESDAY NIGHT CAUCUS BUT FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY CALMED CRITICS WITH A LETTER FROM HILLARY RODHAM CLINTON THE FIRST LADY WHO LEADS THE WHITE HOUSE HEALTHCARE OVERHAUL EFFORT LISTED SEVERAL OPTIONS FOR TRIMMING MEDICARE THAT SHE SAID WOULDN'T UNDERMINE THE ADMINISTRATION'S HEALTHCARE PLANS SENATORS DEFEND THEIR ACTION BY STRESSING THAT THE ADDITIONAL SPENDING CUTS FALL EXCLUSIVELY ON HEALTHCARE PROVIDERS BY REDUCING THE PROGRAMS' PAYMENTS TO DOCTORS AND HOSPITALS NOT CUTTING PATIENT BENEFITS OR RAISING THEIR PREMIUMS THEY ALSO STRESS THAT THE CUTS ARE MERELY REDUCTIONS IN THE PROJECTED INCREASE IN MEDICARE SPENDING BUT CUTS IN MEDICARE REIMBURSEMENTS DO HURT PATIENTS BECAUSE AS EXPERIENCE SHOWS HOSPITALS AND DOCTORS MERELY INCREASE THEIR CHARGES TO PRIVATEPAYING PATIENTS TO MAKE UP FOR THE LOSS IN FEES FROM PUBLIC PROGRAMS DICK DAVIDSON EXECUTIVE DIRECTOR OF THE AMERICAN HOSPITAL ASSOCIATION CONFIRMS THAT HIS MEMBERSHIP WILL DO JUST THAT THERE'S A POINT WHERE YOU CAN'T TAKE ANY MORE OF THESE HITS HE SAID THE EFFECT OF TAKING THESE HITS IS FOR HOSPITALS THAT STILL HAVE THE ABILITY YOU COSTSHIFT THE RESULT FOR BUSINESSES WHICH THINK THEY ESCAPED THE BURDEN OF A BROAD ENERGY TAX MAY BE A NEW HIDDEN TAX IN THE FORM OF HIGHER HEALTH COSTS MY REACTION IS WHERE IS THE BUSINESS COMMUNITY SAID MR DAVIDSON WHERE IS THEIR OUTRAGE THEY PAY MOST OF THE COSTSHIFT DAVID ROGERS CONTRIBUTED TO THIS ARTICLE 9306180009 930618 US AUTO MAKERS PLAN HIGHER OUTPUT IN WEEK DETROIT THE 10 DOMESTIC AUTO MAKERS SAID THEY PLAN TO BUILD A TOTAL OF 221958 CARS AND TRUCKS THIS WEEK UP 139 FROM 194833 VEHICLES BUILT A YEAR AGO GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP SAID THEY PLAN OVERTIME AT A TOTAL OF 34 US AND CANADIAN ASSEMBLY PLANTS THIS WEEK AND NEXT 9306180008 930618 BUSINESS BRIEF APACHE CORP COMPANY PLANS ACQUISITION OF HADSON ENERGY RESOURCES APACHE CORP HOUSTON SAID IT AGREED TO BUY 68 OF HADSON ENERGY RESOURCES CORP'S COMMON STOCK OUTSTANDING FOR ABOUT 588 MILLION HADSON CORP OKLAHOMA CITY OWNS 489 OF HADSON ENERGY'S STOCK APACHE WILL FINANCE THE ACQUISITION WITH ADDITIONAL BORROWING WITH THE AGREEMENT THE PRICE WILL INCREASE TO 15 A SHARE SHOULD APACHE ACQUIRE OVER 80 OF HADSON ENERGY'S COMMON SHARES OUTSTANDING DURING THE NEXT YEAR HADSON ENERGY HAD ABOUT 216 MILLION BARRELS OF OIL EQUIVALENT AS OF YEAREND 1992 APACHE WHICH POSTED 1879 MILLION BARRELS OF OIL AT YEAREND 1992 WOULD OWN ABOUT TWOTHIRDS OF HADSON'S RESERVES IN TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE HADSON ENERGY CLOSED AT 1350 UP 1625 OR 137 9306180007 930618 CORRECTIONS & AMPLIFICATIONS ALZA CORP'S SECONDQUARTER INCOME FROM ROYALTIES AND FEES COULD BE 5 MILLION TO 8 MILLION LOWER THAN THE 325 MILLION REPORTED FOR THE FIRST QUARTER AN ARTICLE YESTERDAY INCORRECTLY SAID THE INCOME FROM THESE SOURCES COULD BE BELOW THE YEAREARLIER PERIOD'S 9306180006 930618 WHO'S NEWS READER'S DIGEST SETS REVAMPING OF UNIT MANAGEMENT CHANGES PLEASANTVILLE NY READER'S DIGEST ASSOCIATION INC LOOKING TO BOLSTER RECENT SLUGGISH SALES IN ITS US BOOKS AND HOMEENTERTAINMENT UNIT ANNOUNCED A NEW CORPORATE ORGANIZATION STRUCTURE AND KEY MANAGEMENT CHANGES READER'S DIGEST'S BOOKS AND HOMEENTERTAINMENT UNIT ACCOUNTS FOR 67 OF WORLDWIDE REVENUE MORE THAN THE SALES OF ITS BETTERKNOWN MAGAZINE THE COMPANY SAID THE CHANGES WOULD HELP RETURN ITS DOMESTIC BOOKS AND HOME ENTERTAINMENT UNIT TO HIGH GROWTH RATES THE UNIT DEVELOPS AND SELLS GENERAL INTEREST AND CONDENSED BOOKS MUSIC TAPES AND COMPACT DISCS TRAVEL AND DOITYOURSELF VIDEOS AMONG OTHER PRODUCTS THE PUBLISHING AND DIRECTMAIL COMPANY SAID DOMESTIC MAGAZINE AND BOOKS AND HOME ENTERTAINMENT OPERATIONS WILL BE PART OF A SEPARATE UNIT READER'S DIGEST USA HEADED BY KENNETH GORDON 55 YEARS OLD CURRENTLY PRESIDENT OF THE COMPANY'S INTERNATIONAL GROUP INTERNATIONAL OPERATIONS WILL BE DIVIDED INTO READER'S DIGESTEUROPE AND READER'S DIGESTPACIFIC HEIKKI HELENIUS 50 NOW VICE PRESIDENT REGIONAL OPERATIONS WILL BE PRESIDENT OF THE EUROPEAN DIVISION MARTIN PEARSON 46 WAS NAMED PRESIDENT OF THE PACIFIC UNIT WILLIAM B TOOHEY 42 DIRECTOR INTERNATIONAL MARKETING WILL SUCCEED MR PEARSON AS MANAGING DIRECTORAUSTRALIA THE DIVISION CHIEFS WILL REPORT TO PRESIDENT AND CHIEF EXECUTIVE OFFICER JAMES P SCHADT THE COMPANY'S OVERALL DOMESTIC SALES FELL 6 IN THE LAST FISCAL QUARTER DUE TO LOWERTHANEXPECTED SALES IN THE UNIT GLOBAL MAGAZINE PUBLISHING ALSO WILL BE SPLIT THE COMPANY SAID THOMAS M KENNEY 46 CURRENTLY PRESIDENT MAGAZINE PUBLISHING GROUP WAS NAMED PRESIDENT US MAGAZINE PUBLISHING MARCIA M LEFKOWITZ 48 VICE PRESIDENT MARKETING SYSTEMS WAS NAMED VICE PRESIDENT MARKETING FOR THE US MAGAZINE GROUP THE POSITION OF PRESIDENT US BOOKS AND HOME ENTERTAINMENT HELD BY WILLIAM J TOTTEN 49 WILL BE ELIMINATED MR TOTTEN WILL CONTINUE AS PRESIDENT OF JOSHUA MORRIS THE COMPANY'S CHILDREN'S BOOKS UNIT 9306180005 930618 THE AMERICAS REVENGE OF THE VENEZUELAN DINOSAURS BY M DELAL BAER VENEZUELA'S NATIONAL OBSESSION WITH THE MAY 5 OUSTER AND UPCOMING TRIAL OF PRESIDENT CARLOS ANDRES PEREZ HAS BEEN LAUDED BY MANY US OBSERVERS AS AN INDICATOR OF THE REVITALIZATION OF LATIN DEMOCRACY THIS IS ONLY PARTIALLY TRUE WHILE MR PEREZ CONTRIBUTED MIGHTILY TO HIS OWN DOWNFALL HIS DEMISE WAS ALSO DRIVEN BY A CRAFTILY STAGED BACKLASH OF THE MOST RETROGRADE ELEMENTS OF VENEZUELAN SOCIETY THEY CAPITALIZED ON THE MAN'S MISTAKES AND GENUINE UNPOPULARITY MR PEREZ'S REMOVAL CONSUMMATES THE REVENGE OF ANTIREFORM DINOSAURS IN POLITICS AND IN THE PRIVATE SECTOR WHO ARE OPPOSED TO THE MARKETORIENTED POLICIES MR PEREZ INITIATED IN 1989 WHY WERE VENEZUELA'S ECONOMIC REFORMS VULNERABLE TO THE ASSAULT OF THE DINOSAURS WHEREAS REFORM IN CHILE MEXICO AND ARGENTINA ENJOYS WIDER PUBLIC ACCEPTANCE IT IS ALWAYS DIFFICULT TO MUSTER SUPPORT FOR THE PAINFUL FIRST STAGES OF REFORMLIFTING SUBSIDIES LIBERALIZING TRADE AND DEREGULATING THE ECONOMY INDEED MEXICO CAME CLOSE TO POPULAR REVOLT AFTER THE SIXYEAR RESTRUCTURING PROGRAM OF PRESIDENT MIGUEL DE LA MADRID 198288 UNLIKE MEXICO OR CHILE HOWEVER THIS PAIN WAS ESPECIALLY DIFFICULT TO ABSORB IN VENEZUELA'S HYPERACTIVE DEMOCRACY WHERE AN OBSTREPEROUS LEGISLATURE BLOCKED REFORMS AND MADE COMMON CAUSE WITH A VITRIOLIC MEDIA THE SUPPOSED MASTER POLITICIAN MR PEREZ HAD SURPRISING DIFFICULTY GETTING HIS MESSAGE ACROSS INDEED HE VEERED AWAY FROM THE AGGRESSIVE PURSUIT OF ECONOMIC REFORM SHORTLY AFTER A FEB 4 1992 COUP ATTEMPT DOGGED BY POLITICAL STALEMATE AND CHARGES THAT HIS POLICIES DID NOT CONSIDER SOCIAL COSTS ALSO UNLIKE CHILE MEXICO OR ARGENTINA MR PEREZ'S FIRSTSTAGE REFORMS WERE NEVER PERCEIVED BY THE GENERAL PUBLIC TO HAVE SPURRED BROADBASED GROWTH OR TO HAVE IMPROVED LIVING STANDARDS A FATAL ERROR THAT MIGHT HAVE MADE THE DIFFERENCE BETWEEN SUCCESS AND FAILURE AT ONE POINT MR PEREZ CONFIDED TO A FRIEND THAT HE FELT HE MUST FILL THE ROLES OF BOTH MIGUEL DE LA MADRID AND CARLOS SALINAS SIMULTANEOUSLY HE HAD BUT ONE TERM TO ACHIEVE BOTH THE STABILITY AND GROWTH THAT MEXICO TOOK TWO TERMS TO ACCOMPLISH WHETHER IT WAS DUE TO A STRATEGIC ERROR OF ECONOMIC POLICY A LACK OF TIME OR WEAK INSTITUTIONAL CAPABILITIES MR PEREZ NEVER MADE THE TRANSITION TO LOW INFLATION AND BROADLYDISTRIBUTED GROWTH THAT MIGHT HAVE GENERATED POPULAR SUPPORT THE LIST OF INTERESTS THAT SLOWED ECONOMIC REFORM AND ULTIMATELY BROUGHT MR PEREZ DOWN INCLUDES BUSINESS MAGNATES ACCUSTOMED TO PROTECTION AND SUBSIDIES CELEBRITY JOURNALISTS AGING DINOSAURS WITHIN THE OPPOSITION CHRISTIAN DEMOCRATIC PARTY COPEI THE POPULIST WING OF MR PEREZ'S OWN DEMOCRATIC ACTION PARTY AD AND VARIOUS STATISTS FROM OPENLY SOCIALIST PARTIES THESE FORCES EXCORIATED MR PEREZ FOR HIS EMBRACE OF NEOLIBERAL HERESY LONG BEFORE THE DISCOVERY OF ALLEGED IMPROPRIETIES THEY RAILED AGAINST THE REFORMS DEMANDED MR PEREZ'S RESIGNATION AND PROMISED A RETURN TO THE MYTHICAL GOODOLDDAYS OF STATISM AND ANTIAMERICANISM MR PEREZ SUFFERED PUBLIC CRITICISM FOR EXAMPLE OF HIS ECONOMIC POLICIES BY NONE OTHER THAN THE PRESIDENT OF HIS OWN AD PARTY HUMBERTO CELLI MR CELLI WAS REMOVED FROM THE PARTY'S LEADERSHIP AFTER HE TOOK THE UNUSUAL STEP OF CALLING FOR MR PEREZ'S RESIGNATION DISTINGUISHED ELDER STATESMEN LIKE COPEI FOUNDER RAFAEL CALDERA WHO REMAINS WEDDED TO STATIST ECONOMIC DOCTRINES SHREDDED THE FABRIC OF CIVILIZED DISCOURSE AT A DELICATE MOMENT BY APPEARING TO CONDONE THE MILITARY REBELS PRESTIGIOUS BUSINESS LEADERS ALSO RESISTED ECONOMIC REFORM VENEZUELA'S CHEMICAL INDUSTRY DEVELOPED DURING THE YEARS WHEN SUBSIDIZED INPUTS FROM THE STATEOWNED OIL COMPANY AND HIGH PRODUCT PRICES IN CLOSED MARKETS WERE THE NORM SO IT'S NOT SURPRISING THAT JULIO SOSA OF THE VENOCO CHEMICAL GROUP IS A CLOSE ADVISER TO MR CALDERA BUT THE PEREZ LYNCH MOB IS NOT JUST SATISFIED WITH MR PEREZ'S DOWNFALL HIS FORMER CABINET MEMBERS HAVE BEEN EXCORIATED BY RANCOROUS APPARATCHIKS WHO WERE BYPASSED WHEN MR PEREZ FORMED HIS CABINET TO SMEAR THE ENTIRE PEREZ GOVERNMENT WITH THE BROAD BRUSH OF CORRUPTION IS UNSCRUPULOUS VENEZUELA'S ECONOMIC REFORM WAS DESIGNED BY A TEAM OF BRILLIANT YOUNG TECHNICIANS RECRUITED FROM THE UNIVERSITIES AND PRIVATE SECTOR ALL ARE CONSIDERED BEYOND REPROACH IN THE INTERNATIONAL COMMUNITY OF COURSE THE ECONOMIC CABINET WAS NOTICEABLY OUT OF SYNC IN STYLE PHILOSOPHY AND EDUCATIONAL BACKGROUND WITH THE POLITICAL HACKS AND CRONIES THAT SURROUNDED MR PEREZ BUT BRINGING DOWN MR PEREZ ALSO MEANT DISLODGING THIS NEW GENERATION OF REFORMERS AND THEIR TRUE COMMITMENT TO ECONOMIC LIBERALIZATION THE NEW CABINET APPOINTED BY VENEZUELA'S INTERIM PRESIDENT RAMON J VELASQUEZ SENDS MIXED SIGNALS ON ECONOMIC REFORM NEW FINANCE MINISTER CARLOS RAFAEL SILVA WAS CITED IN A CARACAS NEWSPAPER'S BANNER HEADLINE SAYING THAT HE DOESN'T BELIEVE IN MARKET ECONOMICS MR SILVA WAS THE CENTRAL BANK PRESIDENT AT THE END OF MR PEREZ'S FIRST TERM AND UNDER LUIS HERRERA WHERE HE IS REMEMBERED FOR STARTING A LONG PERIOD OF INTEREST RATE CONTROLS NEW PLANNING CZAR HERNAN ANZOLA HAS PUBLICLY DECLARED HIMSELF IN FAVOR OF PRESERVING ECONOMIC CONTINUITY BUT HAS ALREADY COME UNDER ATTACK FROM ELEMENTS OF THE NEW ADMINISTRATION FOR HIS PERCEIVED DEFENSE OF MARKET REFORMS IN ALL NOT QUITE JURASSIC PARK BUT THE ANTIREFORM DINOSAURS ARE CERTAINLY TRYING FOR A COMEBACK INTERNATIONAL FINANCIAL REALITIES AND THE HARSH IMPERATIVES OF THE VENEZUELAN ECONOMY PROBABLY WILL PREVENT THE INTERIM CABINET FROM FOLLOWING THEIR NATURAL INSTINCTS MOREOVER THIS IS A CARETAKER GOVERNMENT ITS PRINCIPAL MISSION IS TO AVOID A DESCENT INTO MACROECONOMIC INSTABILITY BEFORE THE DECEMBER PRESIDENTIAL ELECTIONS STILL MR VELASQUEZ SHOULD BE OBSERVED CLOSELY AND GIVEN THE OPPORTUNITY TO SHOW HE RECOGNIZES THAT WHAT WORKED IN A PREVIOUS ERA WON'T WORK TODAY AND WHAT OF MR PEREZ'S LEGACY GIVEN THE INGLORIOUS HISTORY OF VENEZUELAN GOVERNMENT FEW OFFER HIM THE BENEFIT OF THE DOUBT BUT LET'S NOT THROW THE BABY OUT WITH THE BATH WATER AS PLANNING MINISTER ANZOLA DECLARED HIS FIRST DAY IN OFFICE THE NAMES AND PERSONALITIES ASSOCIATED WITH A POLICY DO NOT INVALIDATE THE INTRINSIC SOUNDNESS OF THOSE POLICIES HISTORY WILL RECORD MR PEREZ AS A FLAWED LEADER BUT HE DID ATTEMPT TO CORRECT THE MISGUIDED STATISM OF HIS FIRST TERM AND HE DID NOT RESPOND TO HIS ADVERSARIES BY DISMANTLING VENEZUELAN DEMOCRACY AND SUCCUMBING TO THE TEMPTATION OF A SELFDECLARED COUP IT IS TRAGIC THAT A PROGRAM OF SUCH FARREACHING INTENTIONS IS IN DANGER OF BEING BROUGHT DOWN BY ACCUSATIONS SO VENAL MS BAER IS A SENIOR FELLOW AT THE CENTER FOR STRATEGIC AND INTERNATIONAL STUDIES IN WASHINGTON 9306180004 930618 THE TAX PACKAGE ADVANCES CLINTON NOW MUST SELL PLAN TO THE PUBLIC BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FIRST IN THE HOUSE AND NOW IN THE SENATE FINANCE COMMITTEE DEMOCRATIC LEADERS HAVE COMPROMISED AND CAJOLED ENOUGH TO PERSUADE PARTY RENEGADES TO SUPPORT THEIR VERSIONS OF PRESIDENT CLINTON'S 500 BILLION DEFICITREDUCTION PROGRAM BUT THERE'S AN EVEN TOUGHER CONSTITUENCY MR CLINTON STILL HAS TO CONVINCE THE AMERICAN PUBLIC HIS EFFORT IN COMING WEEKS TO DO SO BEGINNING WITH LAST NIGHT'S PRIMETIME NEWS CONFERENCE WILL LIKELY DETERMINE WHETHER VOTERS VIEW HIS PROGRAM AS THE START OF DOMESTIC REJUVENATION OR A RETURN TO OLDSTYLE DEMOCRATIC ECONOMIC POLICIES THEY'VE LONG SINCE REJECTED THE PUBLIC MUST BE PERSUADED OF THE CONTEXT OF WHY WE'RE DOING THIS SAYS REP DAN GLICKMAN A MODERATE DEMOCRAT FROM KANSAS IF NOT THERE'LL BE ENORMOUS POLITICAL DAMAGE IN 1994 AND BEYOND SO FAR THE COMBINATION OF ADMINISTRATION MISSTEPS OPPOSITION ATTACKS AND DEMOCRATIC RECALCITRANCE HAS EXACTED A TOLL ON MR CLINTON'S STANDING EVEN AS HIS PROGRAM LURCHES TOWARD CONGRESSIONAL APPROVAL WITH HELP FROM ROSS PEROT REPUBLICANS HAVE CONVINCED GROWING NUMBERS OF AMERICANS THAT THE NEW DEMOCRATIC PRESIDENT IS TOO EAGER TO RAISE TAXES AND TOO TIMID TO CUT SPENDING SUPPORT FOR THE PRESIDENT'S ECONOMIC PLAN HAS DROPPED SHARPLY WITH ONLY 35 FAVORING IT IN THE LATEST WALL STREET JOURNAL/NBC POLL DOWN FROM 50 IN APRIL AT THE SAME TIME EFFORTS BY DEMOCRATIC CONSERVATIVES TO ADJUST THE PROGRAMEFFORTS THAT TRIGGERED A HOSTILE REACTION FROM DEMOCRATIC LIBERALS AND AFFECTED INTEREST GROUPS RAISED QUESTIONS ABOUT MR CLINTON'S ABILITY TO OVERCOME WASHINGTON GRIDLOCK ALL THIS BEFORE THE ADMINISTRATION HAS EVEN LAID OUT ITS MASSIVE AND COMPLEX HEALTHCARE REFORM PROGRAM WHICH ALL SIDES AGREE POSES A FAR GREATER POLITICAL CHALLENGE IF WE DON'T CONTROL THE DIALOGUE BETTER ON HEALTH CARE WARNS DEMOCRATIC POLLSTER CELINDA LAKE WE'RE GOING TO BE IN DEEP TROUBLE OF COURSE MR CLINTON MIGHT HAVE COMPLETELY LOST CONTROL OF HIS FORTUNES IF HE HADN'T BEEN ABLE TO PULL SENATE DEMOCRATS TOGETHER BEHIND HIS PACKAGE FOR THAT HE CAN THANK MAJORITY LEADER GEORGE MITCHELL OF MAINE AND FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN IN HIS DEBUT AS CHAIRMAN SEN MOYNIHAN OVERCAME THE DAUNTING OBSTACLES POSED BY HAVING TO PASS A HUGE TAX BILL WITH NO REPUBLICAN VOTES AND NO MARGIN FOR DEFECTIONS AMONG THE COMMITTEE'S 11 DEMOCRATS TO DO SO THE COLORFUL NEW YORK DEMOCRAT RELIED ON HELP FROM THE STOLID MR MITCHELL WHO USED HIS STATURE AS MAJORITY LEADER TO SHAPE COMMITTEE DELIBERATIONS AT DECISIVE MOMENTS SEN KENT CONRAD D ND SAID IT WAS MANY ACTS OF STATESMANSHIP THAT FINALLY BROUGHT THE COMMITTEE PACKAGE TOGETHER BUT AT TIMES IT LOOKED MORE LIKE BABYSITTING SEN DAVID BOREN D OKLA WHO HAD EARLIER ENDORSED THE ADMINISTRATION'S PROGRAM UNEQUIVOCALLY BATHED HIMSELF IN MEDIA ATTENTION BY HOLDING OUT FOR MORE SPENDING CUTS AND THE ELIMINATION OF THE ENERGY TAX THAT SO DISTURBED HIS OILRICH CONSTITUENCY WHEN DEMOCRATIC LEADERS PLACATED MR BOREN BY SUBSTITUTING A GASOLINETAX INCREASE SEN MAX BAUCUS D MONT OBJECTED FOR FEAR IT WOULD HURT MOTORISTS WHO DRIVE LONG DISTANCES BACK HOME AFTER A WHILE MR MITCHELL TURNED BLUNT YOU MAX ARE GOING TO BE RESPONSIBLE FOR BRINGING DOWN THE CLINTON PRESIDENCY MR BAUCUS ULTIMATELY RELENTED THE WHITE HOUSE FOR ITS PART KEPT ITS DISTANCE FROM THE COMMITTEE'S WORK AND PRESIDENT CLINTON CONTINUED TO DO SO IN HIS NEWS CONFERENCE LAST NIGHT THIS APPROACH HELPED PLACATE HOUSE DEMOCRATS WHO REACTED HARSHLY TO INITIAL CONCESSIONS THE ADMINISTRATION MADE FROM THE VERSION THE HOUSE NARROWLY APPROVED LAST MONTH BUT THE ADMINISTRATION'S STANCE WAS ALSO AN ACKNOWLEDGEMENT THAT A PRESIDENT WITH DECLINING POPULARITY RATINGS CAN'T CONTROL INDEPENDENTMINDED SENATORS EVEN FROM HIS OWN PARTY IT'S VERY DIFFICULT FOR A PRESIDENT TO INTERVENE WITH KINGS AND QUEENS AS REP GLICKMAN PUT IT AT THE SAME TIME TREASURY SECRETARY LLOYD BENTSEN SPENT MUCH OF THE WEEK IN QUIET CONSULTATION WITH HIS FORMER COLLEAGUES ON THE COMMITTEE HE ONCE HEADED INCLUDING FACETOFACE MEETINGS AT KEY JUNCTURES THE CLINTON ADMINISTRATION MADE CLEAR TO COMMITTEE MEMBERS THAT IT DIDN'T CARE WHAT WAS REQUIRED TO GET THE BILL OUT OF COMMITTEE AS LONG AS THE FINAL PRODUCT CUT THE DEFICIT BY 500 BILLION OVER THE NEXT FIVE YEARS AND HIT THE RICH HARDER THAN OTHERS THE COMPROMISE THAT DEMOCRATS EMERGED WITH POSES POLITICAL RISKS BY ABANDONING THE BROADBASED ENERGY TAX AND CUTTING DEEPER INTO MEDICARE THE SENATE VERSION RISKS UPSETTING THE POLITICAL BALANCE UNDERGIRDING THE SHARED SACRIFICE MR CLINTON SAYS IS CRITICAL TO DEFICIT REDUCTION THE CONGRESSIONAL BLACK CAUCUS IS THREATENING TO WITHHOLD ITS SUPPORT THE POTENT ELDERLY LOBBY QUIET THUS FAR IN THE BUDGET DEBATE ALSO IS RAISING NEW WARNING SIGNS STILL THERE'S LITTLE DOUBT THAT CONGRESSIONAL DEMOCRATS WILL ULTIMATELY APPROVE THE OVERALL ECONOMIC AGENDA OF THEIR PARTY'S FIRST PRESIDENT IN A DOZEN YEARS TO STUART EIZENSTAT A CARTER WHITE HOUSE VETERAN WHOSE BOSS SUFFERED GRIEVOUSLY FROM DEMOCRATIC INFIGHTING THAT'S AS CLOSE AS THIS COUNTRY CAN COME TO A PARLIAMENTARY SITUATION IN WHICH ENORMOUS PARTY DISCIPLINE EXISTED IN THE END THE QUESTION FOR MR CLINTON IS WHETHER THAT VICTORY WILL PRODUCE MOMENTUM OR A MILLSTONE FOR FUTURE BATTLES THEY'VE HAD TO EXERT EVERY OUNCE OF POLITICAL CAPITAL AND NOW THEY'RE STANDING BATTERED AND EXHAUSTED WITH THEIR REAL CHALLENGE STILL FACING THEM WHICH IS HEALTH CARE REFORM SAID REPUBLICAN WILLIAM KRISTOL WHO SERVED AS VICE PRESIDENT QUAYLE'S CHIEF OF STAFF THIS IS THE ONE DEMOCRATS WILL GIVE CLINTON BUT AFTER THIS IT'S EVERY MAN FOR HIMSELF 9306180003 930618 LAW LEGAL BEAT STADIUMSITE DISPUTE RAISES ETHICS ISSUE BY EDWARD FELSENTHAL THE CONSTRUCTION OF A NEW MAJOR LEAGUE STADIUM IN DENVER HAS TRIGGERED A BRAWL THAT IS UNUSUAL EVEN FOR BASEBALL A COLORADO FAMILY THAT OWNS LAND ON THE STADIUM SITE HAS ALLEGED THAT THE LAW FIRM FAEGRE & BENSON A MIDWESTERN LEGAL POWERHOUSE VIOLATED LEGALETHICS RULES BY ABRUPTLY DUMPING IT AS A CLIENT UNDER PRESSURE FROM THE COLORADO ROCKIES BASEBALL TEAM THE FIRM HAD BEEN HELPING THE COWPERTHWAITE FAMILY IN ITS NEGOTIATIONS WITH THE STATE OVER A SALE PRICE FOR THE LAND WHICH COVERS THE BALLPARK'S HOMEPLATE ENTRANCE FAEGRE & BENSON SAID IT WITHDREW BECAUSE THE STALLED NEGOTIATIONS THREATENED TO DELAY THE OPENING OF THE BALLPARK AND THEREBY HARM THE INTERESTS OF THE ROCKIES THE NEW NATIONAL LEAGUE EXPANSION TEAM THAT BECAME A CLIENT OF THE FIRM SHORTLY AFTER FAEGRE & BENSON BEGAN REPRESENTING THE COWPERTHWAITES THE CONSTRUCTION OF THE STADIUM HAS ALREADY BEGUN BUT CREWS HAVE HAD TO WORK AROUND THE FAMILY'S TWOACRE PLOT BIG LAW FIRMS FREQUENTLY FIND THEMSELVES IN SITUATIONS IN WHICH THE INTERESTS OF A LARGER MORE POWERFUL CLIENT CONFLICT WITH THOSE OF A SMALLER ONE IN SUCH CASES THE LAW PROVIDES THAT STATE LEGALETHICS RULES AND NOT SIMPLY LAWYERS' PREFERENCES MUST GUIDE THE FIRM'S DECISIONS ABOUT WHOM TO REPRESENT THE LAW IS QUITE CLEAR NATIONWIDE THAT YOU CAN'T FIRE A CLIENT IN ORDER TO ACCEPT A NEW MATTER OR CONTINUE WITH THE REPRESENTATION OF A SUBSEQUENT CLIENT SAID STEPHEN GILLERS A LAW PROFESSOR AT NEW YORK UNIVERSITY WHEN THE SECOND CLIENT COMES ON BOARD A FIRM MUST ASK THE ORIGINAL CLIENT'S PERMISSION IF THE FIRM HOPES TO DROP THE FIRST CLIENT IN CASE OF CONFLICT MR GILLERS SAID LOSING YOUR COUNSEL IN THE MIDDLE OF THE MATTER IS QUITE DISRUPTIVE AND IT'S SOMETHING A CLIENT HAS A RIGHT NOT TO SUFFER THE COWPERTHWAITE FAMILY'S PROPERTY IS AMONG THE LAST PARCELS OF LAND THE STATE STILL NEEDS TO BUILD THE BALLPARK COORS FIELD WHERE THE ROCKIES ARE SCHEDULED TO PLAY STARTING IN 1995 THEY ARE PLAYING MILE HIGH STADIUM WHERE THE DENVER BRONCOS PLAY UNTIL THEN AFTER TWO YEARS OF NEGOTIATIONS THE FAMILY AND THE DENVER STADIUM DISTRICT THE GOVERNMENT ENTITY OVERSEEING CONSTRUCTION ARE MORE THAN 1 MILLION APART ON A PURCHASE PRICE CONSTRUCTION BEGAN IN OCTOBER ON THE MORE THAN 60 ACRES THE DISTRICT HAS ALREADY ACQUIRED FOR THE STADIUM WE RESEQUENCED THE SCHEDULE SO THAT INSTEAD OF BEGINNING AT HOME PLATE AND WORKING OUT TO THE OUTFIELD WE BEGAN AT THE OUTFIELD AND WE'RE WORKING INTO HOME PLATE SAID TOM GLEASON THE STADIUM DISTRICT'S DEPUTY DIRECTOR FRUSTRATED BY THE IMPASSE IN NEGOTIATIONS THE DISTRICT HAS FILED PROCEEDINGS TO CONDEMN THE COWPERTHWAITE LAND JOE MONTANO A FAEGRE & BENSON LAWYER HAD BEEN ASSISTING THE COWPERTHWAITES WITH LITIGATION CHALLENGING PROPOSALS TO CONDEMN THE PROPERTY AND HELPED THEM TESTIFY ULTIMATELY UNSUCCESSFULLY AGAINST A STATE LAW GIVING CONDEMNATION POWER TO THE STADIUM DISTRICT BUT IN MAY MR MONTANO NOTIFIED THE FAMILY AND THE COURTS THAT THE FIRM WAS WITHDRAWING FROM THE CASE THE FAMILY LAST WEEK FILED MOTIONS IN THREE STATE COURTS SEEKING TO BLOCK THE WITHDRAWAL JOHN HINDERAKER A FAEGRE & BENSON LAWYER WHO HEADS A FIRM COMMITTEE THAT DEALS WITH CONFLICTS SAYS THE FIRM INFORMED THE COWPERTHWAITES LATE LAST YEAR THAT IF A DIRECT CONFLICT DEVELOPED THE FIRM WOULD HAVE TO DROP THE FAMILY HE SAID THERE WASN'T ANY CONFLICT BETWEEN THE FAMILY AND THE ROCKIES UNTIL THE STALEMATE IN NEGOTIATIONS THREATENED THE OPENING OF THE STADIUM BECAUSE OF THE CONFLICT THE FIRM ALSO WON'T REPRESENT THE ROCKIES ON ISSUES RELATED TO THE COWPERTHWAITES' LAND HE SAID THE FIRM HAS ASSISTED THE TEAM PRIMARILY ON LABOR ISSUES IN ADDITION MR HINDERAKER SAID HE DOESN'T AGREE THAT THE COWPERTHWAITES HAD A RIGHT TO VETO THE WITHDRAWAL OR THE FIRM'S FURTHER REPRESENTATION OF THE ROCKIES THE FAMILY'S ONLY OPTION WHEN IT WAS INFORMED OF THE POSSIBLE CONFLICT WAS THAT IF THEY WANTED TO BE GUARANTEED THAT A CONFLICT WOULD NEVER ARISE THEY COULD SEEK NEW COUNSEL HE SAID THE FAMILY HAS SAID IT WASN'T INFORMED THAT THE FIRM WAS REPRESENTING THE ROCKIES UNTIL THE WITHDRAWAL LAST MONTH SINCE THE WITHDRAWAL THE FAMILY HAS FILED A LAWSUIT CONTENDING THAT THE NEW CONDEMNATION LAW VIOLATES THE STATE CONSTITUTION THE LAWSUIT ALLEGES THAT THE LAW WAS ILLEGALLY AIMED AT ONLY ONE PARCEL OF LAND THEIR OWN AND THAT CONDEMNING THE LAND WOULD UNCONSTITUTIONALLY TAKE THEIR PRIVATE PROPERTY FOR PRIVATE USE STADIUMDISTRICT OFFICIALS COUNTER THAT THE LAW AFFECTS THREE REMAINING PARCELS AND THAT THE STADIUM IS FOR PUBLIC USE SINCE IT IS OWNED BY THE TAXPAYERS THE OLDLINE NEW YORK LAW FIRM MILBANK TWEED HADLEY & MCCLOY IS REDUCING ITS PARTNERSHIP RANKS BY 15 AS PART OF AN EFFORT TO REFOCUS ITS BUSINESS ON CORE AREAS FRANCIS D LOGAN MILBANK'S EXECUTIVE COMMITTEE CHAIRMAN SAID THE FIRM PLANS TO GIVE PRIORITY TO SUCH SPECIALTIES AS BANKING AIRCRAFT LEASING PROJECT FINANCE CORPORATE SECURITIES AND MERGERS AND ACQUISITIONS THESE ARE AREAS WHERE WE FEEL WE CAN HAVE VALUE ADDED MR LOGAN SAID WE'RE NOT GOING TO BE EVERYTHING TO EVERYBODY ANY MORE HE ADDED GETTING LESS ATTENTION WILL BE AREAS THAT HAVE BEEN LESS PROFITABLE FOR THE FIRM SUCH AS LITIGATION REAL ESTATE AND TRUSTS AND ESTATES MILBANK LAWYERS SAID THE STRATEGY WAS OUTLINED IN A PLAN MILBANK DEVELOPED LAST WINTER TO HELP PLAN FOR THE FUTURE IT THEREFORE CAME AS NO SURPRISE MILBANK LAWYERS SAID WHEN THE FIRM'S EXECUTIVE COMMITTEE HELD MEETINGS LAST MONTH TO ANNOUNCE THE PLANS TO REDUCE THE NUMBER OF PARTNERS IN ALL AT LEAST 17 PARTNERS WILL LEAVE MILBANK SOME VOLUNTARILY SOME INVOLUNTARILY AND SOME BY EARLY RETIREMENT REDUCING THE TOTAL PARTNERSHIP RANKS FROM 109 TO 82 IN ADDITION AT LEAST SIX FAIRLY JUNIOR PARTNERS HAVE BEEN TOLD TO IMPROVE THEIR PERFORMANCE OR LEAVE IN 1994 ASSOCIATES WHO HOLD NONPARTNERSHIP POSITIONS AT THE FIRM HAVE BEEN TOLD THAT THEY NEEDN'T WORRY ABOUT LAYOFFS THE REDUCTIONS ARE NOT THE FIRST FOR MILBANK WHOSE MAJOR CLIENTS INCLUDE CHASE MANHATTAN BANK THE ROCKEFELLER FAMILY AND THE NEW YORK STOCK EXCHANGE BUT MR LOGAN SAID THE LATEST DECISION TO TRIM THE PARTNERSHIP RANKS IS MORE FORWARDLOOKING THAN OTHER RECENT REDUCTIONS WHICH MERELY REPRESENTED A REACTION TO THE FIRM'S OVEREXPANSION IN THE 1980S WE'RE RESPONDING TO WHAT WE THINK WILL BE THE VERY COMPETITIVE LEGAL MARKET OF THE FUTURE MR LOGAN SAID PLAINTIFF ATTORNEYS WERE UNABLE TO WIN A LIABILITY SUIT AGAINST AMERICAN TOBACCO CO DESPITE A RULING BY THE JUDGE IN THE CASE THAT CIGARETTES ARE DEFECTIVE AND UNREASONABLY DANGEROUS THE RULING LAST MONTH BY MISSISSIPPI JUDGE EUGENE BOGEN OF WASHINGTON COUNTY CIRCUIT COURT WAS APPARENTLY THE FIRST IN THE NATION TO FIND THAT CIGARETTE COMPANIES ARE STRICTLY LIABLE FOR ILLNESSES CAUSED BY SMOKING TO WIN THE LIABILITY SUIT PLAINTIFF ATTORNEYS HAD ONLY TO PROVE THAT CIGARETTES CAUSED THE SMOKER'S DEATH AND TO BACK UP THE AMOUNT OF DAMAGES SOUGHT THAT IS A MUCH EASIER STANDARD THAN PLAINTIFFS TYPICALLY FACE IN SUCH LITIGATION AGAINST TOBACCO COMPANIES BUT 11 OF THE 12 JURORS AFTER DELIBERATING FOR ABOUT TWO HOURS WEREN'T PERSUADED THAT THE SMOKER DIED BECAUSE OF THE PALL MALLS HE SMOKED HEAVILY FOR 45 YEARS THE SMOKER DISABLED MILITARY VETERAN ANDERSON SMITH DIED IN FEBRUARY 1986 ATTORNEYS FOR AMERICAN TOBACCO A UNIT OF AMERICAN BRANDS INC OLD GREENWICH CONN HAD ARGUED THAT MR SMITH'S HISTORY OF URINARY TRACT INFECTIONS AND KIDNEY AILMENTS WAS A MAJOR CONTRIBUTOR TO HIS DEATH THE TOBACCO INDUSTRY HAS NEVER PAID ANY DAMAGES TO A CIGARETTELIABILITY PLAINTIFF DON BARRETT THE LEXINGTON MISS ATTORNEY FOR MR SMITH'S CHILDREN WHO BROUGHT THE SUIT COULDN'T IMMEDIATELY BE REACHED FOR COMMENT RJR NABISCO HOLDINGS CORP WHICH WASN'T A PARTY TO THE CASE ISSUED A STATEMENT THAT SAID THIS CASE ONCE AGAIN DEMONSTRATES THAT EVEN WHEN THE JURY IS DENIED THE OPPORTUNITY TO HEAR KEY ELEMENTS OF THE TOBACCO INDUSTRY'S DEFENSE THEY CONCLUDE THAT THESE CASES ARE WITHOUT MERIT CONGRESS IS TOYING WITH THE IDEA OF LIMITING SHAREHOLDERS' POWER TO BRING SECURITIESFRAUD SUITS A MOVE OPPOSED NOT JUST BY THE PLAINTIFFS' BAR AND STOCKHOLDER GROUPS BUT BY THE SECURITIES AND EXCHANGE COMMISSION AS WELL WHILE THE SEC DIDN'T FULLY EMBRACE PREVIOUS EFFORTS TO APPLY TORTREFORM PRINCIPLES TO SECURITIES LAW THE AGENCY HASN'T BEEN NEARLY AS FORCEFUL AS IT WAS YESTERDAY IN TESTIMONY BEFORE THE SECURITIES SUBCOMMITTEE OF THE SENATE BANKING COMMITTEE THE SEC'S BIGGEST BOMBSHELL CAME FROM ENFORCEMENT CHIEF WILLIAM MCLUCAS WHO ASSERTED THAT THE LITIGATION EXPLOSION IN SECURITIES CASES AS DESCRIBED BY DEFENDANTS DOESN'T EXIST THE SEC STAFF USED DATA FROM THE ADMINISTRATIVE OFFICE OF US COURTS WHICH COLLECTS INFORMATION FROM ALL FEDERAL COURTS TO CONCLUDE THAT THE APPROXIMATE AGGREGATE NUMBER OF SECURITIES CASES INCLUDING COMMISSION CASES FILED IN FEDERAL DISTRICT COURTS DOESN'T APPEAR TO HAVE INCREASED OVER THE PAST TWO DECADES MARK GITENSTEIN A PARTNER AT MAYER BROWN & PLATT WHICH REPRESENTS A COALITION OF ACCOUNTING FIRMS PRESSING FOR LIMITS ON SECURITIESFRAUD SUITS SAID THE STATISTICS CITED BY MR MCLUCAS TELL YOU PART OF THE STORY AND NOT ALL OF THE STORY FOR EXAMPLE HE SAID ANY ONE OF THESE CASES CAN INVOLVE HUNDREDS OF CLASSES MR MCLUCAS CONCLUDED THAT MANY STATES' SECURITIES LAWS MAKE PLAINTIFFS' CASES EASIER TO BRING IN STATE COURTS AND MAY SUBSTANTIATE COMPLAINTS BY COMPANIES AND THEIR PROFESSIONAL ADVISERS THAT THEY ARE UNDER A LITIGATION SIEGE BUT HE SAID THE PROBLEMS CAUSED BY THOSE LAWS DON'T NECESSARILY PROVIDE A COMPELLING CASE FOR TAMPERING WITH FEDERAL STANDARDS JONATHAN M MOSES AND JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9306180002 930618 BUSINESS BRIEF PROCTER & GAMBLE CO THREE JUICEPLANT CLOSINGS ARE SET FOR NEXT TWO YEARS PROCTER & GAMBLE CO WILL CLOSE THREE OF ITS NINE JUICEPRODUCT PLANTS OVER THE NEXT TWO YEARS AS PART OF A CONSOLIDATION OF ITS JUICE BUSINESS THE FACILITIES TO BE CLOSED ARE IN FINDLAY OHIO MT DORA FLA AND CHICOPEE MASS THE PLANTS WHICH MAKE SUNNY DELIGHT AMD HAWAIIAN PUNCH EMPLOY 350 WORKERS FEW OF WHOM WILL BE TRANSFERRED TO OTHER PLANTS P&G SAID THE EXPENSE OF THE CLOSINGS IS COVERED BY A RESERVE SET UP IN P&G'S FISCAL FIRST QUARTER ENDED SEPT 20 1992 THAT WAS ASSOCIATED WITH THE COMPANY'S CLOSING OF ITS CITRUS HILL ORANGEJUICE BUSINESS THE SIX SITES SCHEDULED TO ABSORB PRODUCTION FROM THE THREE CLOSED PLANTS ARE IN SOUTH BRUNSWICK NJ PLYMOUTH IND FREEMONT MICH SHERMAN TEXAS ANAHEIM CALIF AND ATLANTA P&G BASED IN CINCINNATI DECLINED TO SAY HOW MUCH ITS OPERATING COSTS WOULD BE REDUCED BY THE CLOSINGS 9306180001 930618 MONEY FUND ASSETS FALL BY 228 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS FELL BY 228 BILLION TO 58031 BILLION FROM 58259 BILLION FOR THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 638 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 156 BILLION TO 38827 BILLION THE TRADE GROUP SAID ASSETS OF 399 TAXABLE MONEY MARKET FUNDS IN THE RETAIL CATEGORY FELL BY 107 BILLION TO 30631 BILLION ASSETS OF 239 RETAIL TAXEXEMPT FUNDS FELL BY 4908 MILLION TO 8196 BILLION ASSETS OF THE 266 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 7147 MILLION TO 19203 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 214 TAXABLE MONEY MARKET FUNDS FELL BY 2680 MILLION TO 17078 BILLION ASSETS OF 52 TAXEXEMPT FUNDS FELL BY 4467 MILLION TO 2125 BILLION 9306180167 930526 PARKS WITHOUT PEOPLE BY NATHAN EDELSON IF THE SIERRA CLUB AND THE WILDERNESS SOCIETY GET THEIR WAY THE MAGIC OF SPENDING THE NIGHT AT GRANITE AND SPERRY CHALETS IN MONTANA'S GLACIER NATIONAL PARK WILL SOON BECOME HISTORY THE CHALETS WERE BUILT IN 191314 AS PART OF A STRING OF BACKCOUNTRY STOPPINGOVER PLACES THAT SERVED THE PUBLIC UNTIL NEGLECT AND ARSON DURING WORLD WAR II REDUCED THEIR NUMBER TO THE TWO STONEANDTIMBER STRUCTURES AND THEIR OUTBUILDINGS THAT REMAIN TODAY THEY ARE THE ONLY BACKCOUNTRY HOSTELRIES LEFT IN THE ENTIRE NATIONAL PARK SYSTEM AND ARE ON THE REGISTER OF NATIONAL HISTORIC PLACES SINCE 1954 THE CHALETS HAVE BEEN OPERATED UNDER A CONCESSION LICENSE BY A CONSCIENTIOUS LOCAL FAMILY AND THEIR MOSTLY COLLEGEAGE SUMMER STAFF IF YOU ARE AMONG THE 35 TO 40 DAILY VISITORS DURING JULY AND AUGUST WILLING TO HIKE A FEW HOURS UP A BEAUTIFUL ALPINE TRAIL TO REACH THEM FOR ABOUT 70 YOU GET A BREATHTAKING DESTINATION THREE LARGE MEALS THE CHANCE TO MEET PEOPLE FROM AROUND THE WORLD AND A SAFE NIGHT'S SLEEP BUT IN JANUARY 1992 THE SIERRA CLUB LEGAL DEFENSE FUND AND THE WILDERNESS SOCIETY THREATENED TO SUE THE NATIONAL PARK SERVICE OVER THE CONTINUED OPERATION OF THE CHALETS AND NEARLY A YEAR LATER THE PARK SERVICE RESPONDED BY ANNOUNCING THE CHALETS' CLOSING FOR AT LEAST THE 1993 AND 1994 SEASONS THE OSTENSIBLE ISSUE CONCERNED THE DISPOSAL OF SLUDGE FROM THE CHALETS' TOILETS BUT THE REAL ISSUE IS WHOSE INTERESTS ARE SERVED BY LETTING THE SIERRA CLUB AND WILDERNESS SOCIETY DICTATE PARK POLICY IT IS DIFFICULT TO CONCEIVE OF HOW EITHER GLACIER NATIONAL PARK OR ITS VISITORS WILL BENEFIT FROM THE DECISION TO CLOSE THE QUAINT AND RUSTIC CHALETS FOR IF SLUDGE DISPOSAL AT THE CHALETS WAS A PROBLEM IT WAS NOTHING COMPARED WITH WHAT CONDITIONS WILL BE LIKE THIS SUMMER WHEN HIKERS WHO CAN NO LONGER USE THE CHALETS' IMMACULATELY MAINTAINED PUBLIC TOILETS WILL HAVE TO DUCK BEHIND TREES TO RELIEVE THEMSELVES JUST OFF THE HIGHLY POPULAR TRAILS SO WHAT DID THE CONSERVATION GROUPS HOPE TO GAIN BY THEIR THREAT PERHAPS THEY REASONED THAT IF THEY COULD FIRST COW THE PARK SERVICE INTO KEEPING OUT FAMILIES WHO PREFER STAYING IN THE HISTORIC CHALETS TO CAMPING OUT IN THE MIDDLE OF GRIZZLY BEAR COUNTRY THEY COULD NEXT ARRANGE FOR THE EXCLUSION OF MOST OTHER BACKCOUNTRY HIKERS THIS WOULD FIT RIGHT INTO THEIR AVOWED PHILOSOPHY THAT PARKS MUST BE EXPERIENCED ON THEIR OWN TERMS AND THAT THESE TERMS SHOULD INCLUDE AS FEW PEOPLE AS POSSIBLE THE CONSERVATION GROUPS HAVE BEEN ABLE TO GET AWAY WITH THESE EXTREMIST POSITIONS BECAUSE MOST ENVIRONMENTALLY CONSCIOUS AMERICANS RECOGNIZE THAT THERE IS PLENTY OF TAWDRY AND INAPPROPRIATE DEVELOPMENT IN OUR NATIONAL PARKS BUT UNLESS WE WANT TO CLOSE THEM TO EVERYONE EXCEPT SIERRA CLUB CALENDAR PHOTOGRAPHERS A FEW APPROVED SCIENTISTS AND MACHO SURVIVALIST TYPES WE PROBABLY NEED AT LEAST AS MANY DEVELOPED FACILITIES IN THE PARKS AS THERE ARE NOW THE CHALLENGE IS TO MAKE THESE FACILITIES AS SUBLIME AS POSSIBLE SO THAT LIKE THE CHALETS THEY ADD TO OUR EXPERIENCE OF NATURE SUCH DEVELOPMENTS ALSO HELP TO PROTECT THE ENVIRONMENT BECAUSE THEY CONSOLIDATE USE INTO RELATIVELY SMALL AREAS THAT CAN THEN BE CAREFULLY MANAGED YET WHO CAN BE ENTRUSTED TO UNDERTAKE THE SENSITIVE WORK OF APPROPRIATE PARK DEVELOPMENT WITH A FEW NOTEWORTHY EXCEPTIONS SUCH AS THE SECONDGENERATION FAMILY OPERATORS OF GLACIER'S GRANITE AND SPERRY CHALETS MOST EXISTING PARK CONCESSIONAIRES SEEM INTERESTED IN LITTLE BEYOND THEIR BOTTOM LINES SMALL LOCAL VOLUNTEER GROUPS CAN SELDOM ROUND UP THE NECESSARY RESOURCES OR MANPOWER TO PLAN AND RUN REMOTE FACILITIES WHILE LARGE WELLENDOWED CONSERVATION ORGANIZATIONS PREFER TO WAGE HIGHPROFILE LEGAL BATTLES RATHER THAN TO FINANCE RESEARCH ON LOWIMPACT BACKCOUNTRY TOILETS AS FOR THE PARK SERVICE GLACIER PARK SUPERINTENDENT GILL LUSK WAS UNDER NO LEGAL OBLIGATION TO CLOSE THE GRANITE AND SPERRY CHALETS THIS COMING SUMMER ONLY TO PREPARE A PLAN TO HANDLE THEIR IMMEDIATE SLUDGE REMOVAL NEEDS SUCH A PLAN COULD BE AS SIMPLE AS RAISING THE CHALET LODGING FEE BY A DOLLAR A NIGHT TO PAY FOR THE SLUDGE TO BE HAULED AWAY BY HORSE OR HELICOPTER AT THE END OF THE VISITOR SEASON BUT RATHER THAN RISK A LAWSUIT MR LUSK ACTED OR WAS TOLD TO ACT IN A WAY THAT VIRTUALLY GUARANTEES THE PERMANENT CLOSURE OF THE CHALETS FOR OVERNIGHT USE SINCE ONCE THEY ARE CLOSED THE SIERRA CLUB AND THE WILDERNESS SOCIETY WILL BE IN A VIRTUALLY UNSTOPPABLE POSITION TO KEEP THEM CLOSED USING ONE LEGAL TECHNICALITY OR ANOTHER MOREOVER MR LUSK MADE THE CLOSURE ANNOUNCEMENT NOT DURING JULY OR AUGUST WHEN GLACIER PARK VISITORS FROM ACROSS AMERICA WOULD HAVE QUICKLY HEARD ABOUT IT AND EXPRESSED THEIR OUTRAGE BUT IN DECEMBER WHEN THE ONLY SIGNIFICANT REPORTING OF THE EVENT TOOK PLACE IN THE LOCAL WEEKLY PAPER THE HUNGRY HORSE NEWS NONETHELESS KNOWLEDGE ABOUT THE CLOSURE OF THE CHALETS HAS LEAKED OUT AND EARLIER THIS SPRING SUPERINTENDENT LUSK SENT A FACT SHEET TO ABOUT A HUNDRED PEOPLE WHO HAD WRITTEN HIM TO PROTEST WHILE THIS FACT SHEET DISINGENUOUSLY IMPLIES THAT THE CHALETS WERE CLOSED ONLY AFTER EVERY POSSIBLE MEANS TO KEEP THEM OPEN HAD BEEN CONSIDERED IT DOESN'T EVEN MENTION THE ONE FACT THAT PROBABLY INFLUENCED THE CLOSURE DECISION MOST OF ALL THE SIERRA CLUB'S THREATENED COURT ACTION IF THE NATIONAL PARK SERVICE UNDER ITS CURRENT LEADERSHIP IS NOT WILLING TO GO TO COURT TO PRESERVE SUCH AN ENVIRONMENTALLY RESPONSIBLE AND PROFOUNDLY UPLIFTING EXPERIENCE AS SPENDING THE NIGHT AT GRANITE AND SPERRY CHALETS THEN PERHAPS INTERIOR SECRETARY BRUCE BABBITT SHOULD FIND A NEW NATIONAL PARK DIRECTOR WHO IS UP TO THE TASK AND IF HE SUCCEEDS AND THE CHALETS OPEN ON SCHEDULE THIS JULY 4 WEEKEND I HOPE HE VISITS AND BRINGS ALONG BILL CHELSEA AND HILLARY MR EDELSON IS A FORMER PARK RANGER WHO LIVES IN MISSOULA MONT SEE RELATED LETTERS LETTERS TO THE EDITOR CHALETS MUST CONFORM TO NATURE'S WAY WSJ JUNE 18 1993 9305260136 YY93 MM06 9306180120 930524 PASS NATIONAL SERVICE CRIPPLE CHARITY BY BRUCE CHAPMAN SURVEYS BY THE GALLUP POLL AND INDEPENDENT SECTOR SHOW THAT CHARITABLE GIVING AND SERVICE ARE THRIVING TODAY AS SELDOM BEFORE IN 1991 THE LATEST YEAR FOR WHICH DATA ARE AVAILABLE 942 MILLION AMERICANS AGE 18 AND OVER VOLUNTEERED IN SOME CAPACITY WITH AN AVERAGE OF MORE THAN 42 HOURS OF SERVICE PER WEEK THE MOTIVE FORCE IS A SPIRIT OF TRUE VOLUNTARISM AND GENUINE SERVICE DRAWING ON A MORAL TRADITION GOING BACK TO THE BIBLE AND WENDING THROUGH THE AMERICAN FOUNDING AND THE YOUNG REPUBLIC DESCRIBED BY ALEXIS DE TOCQUEVILLE THIS IDEAL HAS CREATED WHAT SOME CALL A MEDIATING INSTITUTION BETWEEN THE PROFIT SECTOR AND THE GOVERNMENT NOW THE GOVERNMENT PROPOSES NOT ONLY TO COMPETE WITH THIS SECTOR AS IN THE VISTA PROGRAM BUT TO INVADE IT DIRECTLY UNDER PRESIDENT CLINTON'S NATIONAL SERVICE BILL POLITICALLY APPOINTED BOARDS CHOSEN BY STATE GOVERNORS WOULD FUNNEL FEDERAL FUNDS FOR SERVICE JOBS TO SELECTED PRIVATE AND CIVIC GROUPS IMAGINE YOU RUN A PRIVATE CHARITY IF IT IS CHOSEN TO PARTICIPATE IN THE NATIONAL SERVICE PROGRAM YOU'VE HIT THE JACKPOT FINANCIALLY BUT IF YOUR CHARITY LIKE THE GREAT MAJORITY IS NOT CHOSEN YOUR CAUSE WILL FIND ITSELF TRYING TO COMPETE WITH THE FEDERAL TREASURY AMERICANS FAMILIAR WITH THE NOTORIOUS COMPREHENSIVE EMPLOYMENT AND TRAINING ACT OF THE 1970S SHOULD FIND THE PROSPECTS FOR UNABASHED POLITICAL PATRONAGE AND EVEN CORRUPTION OBVIOUS INCAPACITATING THE NONGOVERNMENT CHARITABLE SECTOR FURTHER THE NATIONAL SERVICE BILL ALLOWS READ ENCOURAGES THE PROGRAMS IT BACKS TO RAISE ADDITIONAL FUNDS FROM PRIVATE SOURCES IMAGINE TRYING TO RAISE MONEY FOR A PRIVATE CHARITY WHEN THE GOVERNMENT'S ENDORSED CHARITIES BLESSED BY YOUR STATE'S GOVERNOR CAN OFFER DONORS FEDERAL MATCHING MONEY PRESTIGE AND PUBLIC RECOGNITION AS INCENTIVES TO FUND THEM INSTEAD NATIONALSERVICEBACKED GROUPS ALSO WILL BE ALLOWED TO ADD PRIVATE CHARITABLE FUNDS TO THE GOVERNMENT SALARY OFFERED TO ATTRACT VOLUNTEERS TAXFREE NATIONAL SERVICE SALARIES ALONE WILL BE ABOUT 20000 ANNUALLY INCLUDING MEDICAL AND OTHER BENEFITS SUCH AS CHILD CARE AND THE 5000 COLLEGE LOAN PAYMENT WITH THE GOVERNMENTPERMITTED PRIVATE MATCH SALARIES COULD EXCEED 29000 THAT IS MORE THAN MOST YOUTHS COULD HOPE TO MAKE STARTING OUT IN THE PRIVATE SECTOR WHERE THE MEDIAN INCOME OF WORKERS INCLUDING THOSE WITH YEARS OF EXPERIENCE IS 29400 FOR MALES AND 20500 FOR FEMALES IT IS SURELY FAR MORE THAN MOST PRIVATE CHARITIES COULD OFFER THEM THUS AS NATIONAL SERVICE MAKES SELECTED CHARITABLE CAUSES MORE ATTRACTIVE TO VOLUNTEERS AND DONORS IT AUTOMATICALLY WILL MAKE OTHERS LESS SO ONE SEES THIS ESPECIALLY IN RESPECT TO RELIGIOUS ORGANIZATIONS NOW THE SOURCE OF ROUGHLY HALF OF ALL CHARITABLE ACTIVITIES BECAUSE OF UNDERSTANDABLE CONCERNS OVER SEPARATION OF CHURCH AND STATE NATIONAL SERVICE WILL NOT SUPPORT ANY PROGRAMS THAT PROVIDE RELIGIOUS INSTRUCTION CONDUCT WORSHIP SERVICES OR PROSELYTIZE BUT EFFECTIVELY THAT MEANS THAT A CHURCH OR SYNAGOGUE RUNNING A YOUTH LEADERSHIP PROGRAM OR DAYCARE CENTER WILL BE AT A DISADVANTAGE AGAINST COMPARABLE NATIONAL SERVICE PROGRAMS QUICKLY THE PRESSURE WILL BE ON RELIGIOUS GROUPS TO SECULARIZE OR SPIN OFF THEIR SERVICE PROGRAMS TO MAKE THEM APPEALING TO NATIONAL SERVICE MOREOVER THE PRESIDENT'S BILL IS FULL OF FEDERAL PAPERWORK OBLIGATIONS SO THE PREMIUM INCREASINGLY WILL BE ON PROFESSIONALIZING VOLUNTEER SERVICE IN ORDER TO OBTAIN FEDERAL DOLLARS BUT IT IS THE AMATEUR UNBUREAUCRATIC CHARITIES THAT TYPICALLY ARE THE MOST INNOVATIVE TOCQUEVILLE IN PRAISING THE ENERGY AND DISTINCTION OF AMERICA'S VOLUNTARY ASSOCIATIONS WARNED ONCE IT LEAVES THE SPHERE OF POLITICS TO LAUNCH OUT ON THIS NEW TRACK GOVERNMENT WILL EVEN WITHOUT INTENDING THIS EXERCISE AN INTOLERABLE TYRANNY FOR A GOVERNMENT CAN ONLY DICTATE PRECISE RULES IT IMPOSES THE SENTIMENTS AND IDEAS WHICH IT FAVORS AND IT IS NEVER EASY TO TELL THE DIFFERENCE BETWEEN ITS ADVICE AND ITS COMMANDS INDEED MUCH OF THE INTELLECTUAL ARGUMENT FOR NATIONAL SERVICE EXPRESSLY REJECTS THE TOCQUEVILLEAN TRADITION RUTGERS PROF BENJAMIN BARBER WHOSE CONTRIBUTION TO THE IDEA OF NATIONAL SERVICE WAS HAILED BY PRESIDENT CLINTON WHEN HE ANNOUNCED THE PLAN IS A CRITIC OF LIMITED GOVERNMENT CAPITALISM AND REPRESENTATIVE THIN DEMOCRACY HE ARGUES INSTEAD FOR INSTITUTIONS OF STRONG DEMOCRACY INCLUDING ULTIMATELY COMPULSORY UNIVERSAL CITIZEN SERVICE IN GOVERNMENTRUN PROGRAMS MOST PRIVATE INDEPENDENT EFFORTS HE BELIEVES ENCOURAGE SELFINTERESTEDNESS ANOTHER CHAMPION OF NATIONAL SERVICE MUCH ADMIRED AT THE WHITE HOUSE IS MICHAEL BROWN CODIRECTOR OF BOSTON'S CITY YEAR HE HAS BEEN AN INFLUENTIAL ADVOCATE OF SEEKING PRIVATE AS WELL AS PUBLIC MONEY FOR NATIONAL SERVICE PROGRAMS AND OF THE NATIONAL SERVICE TRUST FUND PICKING PRIVATE CHARITY PROGRAMS TO BACK RATHER THAN RUNNING SERVICE PROGRAMS ITSELF IN THIS WAY MR BROWN WROTE RECENTLY THE AMERICAN PEOPLE SHOULD BE GIVEN THE OPPORTUNITY TO FALL IN LOVE WITH THE IDEA OF THE NATIONAL SERVICE TRUST FUND AND NOT HAVE THEIR AFFECTIONS TIED TO THE SUCCESS OR FAILURE OF ANY SPECIFIC NATIONAL SERVICE PROGRAM LIKE SOCIAL SECURITY NATIONAL SERVICE WILL BE WOVEN INTO THE FABRIC OF AMERICAN LIFE CONGRESSIONAL HEARINGS ON PRESIDENT CLINTON'S NATIONAL SERVICE PLAN AND THE PUBLIC RELATIONS CAMPAIGN ADVANCING IT ALMOST ALWAYS BRING FORWARD AS SPOKESMEN YOUNG INGENUOUS PARTICIPANTS IN PRIVATE CHARITIES THIS APPROACH WITH IDEALISTIC TEACHER'S AIDES OR STUDENT TREEPLANTERS MAKING THE PITCH FOR A NEW GOVERNMENT PROGRAM IS AFFECTING BUT THESE ADMIRABLE YOUNGSTERS ARE NOT THE ORGANIZERS OF THE SCHEME AND THEY ARE NOT LIKELY TO UNDERSTAND ITS LONGTERM IMPLICATIONS FOR THE VOLUNTARY SECTOR AS A WHOLE NEITHER APPARENTLY DOES MUCH OF THE DISORGANIZED OPPOSITION OPPONENTS OF THE PLAN SEEM TO THINK THE MAIN PROBLEMS ARE THE ADDITION TO THE DEFICIT 400 MILLION THIS YEAR 7 BILLION BY 1997 THE MORAL CONTRADICTION OF PAYING FOR SERVICE WHEN NO RISK OR INCONVENIENCE IS ENTAILED UNLIKE MILITARY SERVICE OR THE PEACE CORPS AND THE FAILURE OF THE PLAN TO COVER MORE THAN 1 OF THE STUDENT POPULATION WITH ITS PAYMENT OF AS MUCH AS 10000 IN COLLEGE LOANS FOR TWO YEARS' GOVERNMENTAPPROVED SERVICE THESE DIFFICULTIES ARE ALL GENUINE BUT NOT THE GREATEST DANGER THE ATTACK ON THE VOLUNTARY SECTOR IS NATIONAL SERVICE REPORTEDLY IS ON A FAST TRACK IN CONGRESS HOWEVER THE VOLUNTARY SECTOR AND ITS SUPPORTERS OTHER THAN THOSE ORGANIZATIONS THAT HOPE TO BENEFIT DIRECTLY FROM FEDERAL FUNDS APPARENTLY DO NOT UNDERSTAND YET WHAT IS ABOUT TO HIT THEM MR CHAPMAN IS PRESIDENT OF DISCOVERY INSTITUTE A PUBLIC POLICY CENTER IN SEATTLE SEE RELATED LETTER LETTERS TO THE EDITOR RIGHTFULLY CONFUSED WSJ JUNE 18 1993 9305240024 YY93 MM06 9306180030 930525 LETTERS TO THE EDITOR BALANCE SHEETS' HISTORICAL COST' PETER F DRUCKER IS WRONG WHEN HE STATES BALANCE SHEETS WERE DESIGNED TO SHOW WHAT A BUSINESS WOULD BE WORTH IF IT WAS LIQUIDATED TODAY WE NEED TO MEASURE NOT COUNT EDITORIAL PAGE APRIL 13 EVEN NOWADAYS BALANCE SHEETS ARE DOMINATED BY THE DEAD HAND OF THE PAST WHERE MOST ASSETS AND LIABILITIES APPEAR AS THEY WERE RECORDED INITIALLY SOMETIMES AS A RESULT OF A TRANSACTION THAT OCCURRED YEARS AGO THE SOCALLED HISTORICAL COST PRINCIPLE IS IN FACT ANCHORED IN THE GOING CONCERN ASSUMPTION FROM WHICH IT FOLLOWS THAT LIQUIDATION VALUES SHOULD BE CONSIDERED AN EXCEPTION TO THE NORM AND THEREFORE USED ONLY SPARINGLY NAMELY IN BANKRUPTCY CASES WHEN THE ASSUMPTION NO LONGER HOLDS THE CURRENT PUSH FOR BALANCE SHEETS THAT REFLECT TO A LARGER EXTENT FAIR MARKET VALUES A MOVE SUPPORTED BY THE SECURITIES AND EXCHANGE COMMISSION AND APPARENTLY BY A SLENDER MAJORITY ON THE FINANCIAL ACCOUNTING STANDARDS BOARDSHOULD HELP IN ACHIEVING MR DRUCKER'S INTEREST IN STATEMENTS THAT RELATE THE ENTERPRISE'S CURRENT CONDITION TO ITS FUTURE WEALTHPRODUCING CAPACITY MR DRUCKER HAS HIGH HOPES AS MANY OF US ACCOUNTANTS DO FOR ACTIVITYBASED COSTING A RELATIVELY RECENT INNOVATION AND AN IMPROVEMENT UPON TRADITIONAL COST ACCOUNTING BUT LET US NOT ENGAGE IN OVERSELL ABC DOES PROVIDE AN INCENTIVE TO ECONOMIZE BY REQUIRING IDENTIFICATION OF COST DRIVERS FACTORS THAT AFFECT COSTS BE THEY THE NUMBER OF PARTS THE SIZE AND NUMBER OF ORDERS WHETHER OR NOT THE ITEM ORDERED IS CUSTOM MADE ETC ABC THEN PROCEEDS TO ASSIGN BURDEN RATES TO THESE FACTORS THUS ENABLING US TO CALCULATE WITH A HIGHER DEGREE OF PRECISION HOW PROFITABLE AN INVENTORY ITEM AN ORDER OR A CUSTOMER IS THIS I BELIEVE IS QUITE AN ACCOMPLISHMENT FOR IT OFTEN RESULTS IN NUMEROUS FALLEN HEROES TRANSACTIONS FORMERLY BELIEVED TO BE MONEYMAKERS AND NOW EXPOSED THROUGH THE COLD LIGHT OF ANALYSIS FOR THE DOGS THEY TRULY ARE THERE IS NO NEED TO ARGUE IN ADDITION AS MR DRUCKER DOES THAT ABC RECORDS ALL COSTS IT DOES NOT SEE RELATED LETTER LETTERS TO THE EDITOR UNDERSTANDING COSTS HELPS BOTTOM LINE WSJ JUNE 18 1993 9305250146 YY93 MM06 9306180019 930514 LETTERS TO THE EDITOR SOME DOCTORS ARE WORTH THEIR FORTUNES CONGRATULATIONS TO DR RICHARD STEADMAN PROFILED IN A TOP PHYSICIAN EARNS A FORTUNE REPAIRING KNEES IN VAIL COLO PAGE ONE APRIL 8 FOR HAVING THE COURAGE TO ALLOW REPORTER GEORGE ANDERS TO PROFILE HIM AND HIS PRACTICE WHILE OTHERS MAY CRITICIZE THE 14 MILLION PROFIT HE AND HIS PARTNER SHARED LAST YEAR HIS SUCCESS IS WHAT OUR ECONOMIC SYSTEM IS ALL ABOUT WHILE POLITICIANS ARE PAINTING PHYSICIANS AS THE BAD GUYS DR STEADMAN HAD THE GUTS TO FIGHT BACK THE BEST PROFESSIONALS IN ANY FIELD SHOULD BE REWARDED FOR THEIR SKILLS TALENTS AND EXPERTISE BECAUSE HEALTH AND LIFE ITSELF ARE OUR TOP PRIORITY WE SHOULD COMPENSATE THOSE WHO HELP PRESERVE AND ENHANCE IT DR STEADMAN REPRESENTS THE KIND OF PHYSICIAN WHO MAKES THE US HEALTH CARE SYSTEM THE FINEST IN THE WORLD CAPPING HIS INCOME WILL NOT SOLVE THE PROBLEMS OF RISING HEALTH CARE COSTS BUT IT CERTAINLY WILL INHIBIT THE INNOVATION AND EXPERTISE HE OFFERS HEALTH CARE REFORMS SHOULD PROVIDE INCENTIVES TO INJECT MORE NOT LESS CONSUMER CHOICE IN THE HEALTH CARE SYSTEM REFORMING TAX POLICY TO MAKE HEALTH INSURANCE DEDUCTIBLE FOR INDIVIDUALS INSTEAD OF EMPLOYERS WOULD GO A LONG WAY TOWARD ENCOURAGING PATIENTS TO OPERATE AS SMART CONSUMERS IN THE HEALTH CARE MARKET IN SO DOING WE WOULD WRING OUT EXCESSES AND HAVE MORE RESOURCES FOR EXCELLENCE YOUR ARTICLE ON DR STEADMAN DESCRIBES A COMPETENT AND WELLKNOWN SURGEON WHO IS ENJOYING A HIGHER INCOME THAN MOST OF HIS COLLEAGUES HIS IS AN AMERICAN SUCCESS STORY THE HEADLINE DESCRIPTION OF HIS EARNINGS AS A FORTUNE STRIKES ME AS BIZARRE WHEN COMPARED WITH THE KINDS OF MONEY THE BUSINESS PEOPLE ON YOUR PAGES HAVE MADE NOT TO MENTION THOSE IN THE SPORTS AND ENTERTAINMENT WORLDS MULTIMILLIONDOLLAR STOCK OPTION DEALS MULTIMILLION DOLLAR FEES AND PROFITS FROM LEVERAGED BUYOUTS AND MULTIMILLIONDOLLAR EXECUTIVE SALARIES ARE CLOSER TO THE DEFINITION OF A FORTUNE THAN THE EARNINGS OF A TOP SURGEON WHO WORKS 11HOUR DAYS IN THE OPERATING ROOM RESTORING INDIVIDUALS TO HEALTH IF THESE PEOPLE DESERVE THEIR MILLIONS HE DESERVES HIS MILLION ON JAN 24 MY SON TORE HIS ANTERIOR CRUCIATE LIGAMENT IN A SKI RACE THOUGH I BRIEFLY INVESTIGATED ALTERNATIVE SURGEONS BECAUSE OF THE ISSUE OF INSURANCE REIMBURSEMENT THERE REALLY IS NO SECOND CHOICE TO THIS REMARKABLE MAN YOUR ARTICLE STATES THAT DR STEADMAN'S PRACTICE IS THE RESULT OF TWO LUCKY BREAKS THE REALITY IS THAT PEOPLE CREATE THEIR OWN LUCK AND DR STEADMAN HAS PIONEERED THE STATE OF THE SURGICAL ART IN RECONSTRUCTIVE KNEE SURGERY AND ACTIVE REHABILITATION IN THE EARLY 1970S WHEN HE FIRST TREATED MEMBERS OF THE US SKI TEAM THEIR INJURIES WERE CONSIDERED CAREERENDING THE COMEBACKS OF THESE ATHLETES ARE NOT SO EASILY DISMISSED AS GREAT ADVERTISING THEY ARE THE RESULT OF THE SURGICAL SKILL AND INNOVATION OF DRSTEADMAN AND THE DETERMINATION OF THESE WORLDCLASS ATHLETES TO RESUME THEIR CAREERS DR STEADMAN'S PRACTICE DOES NOT SIMPLY REAP THE FINANCIAL REWARDS OF PAST SUCCESS AND THE LUCK ASSOCIATED WITH TECHNOLOGICAL ADVANCEMENTS HE IS CONSTANTLY ADVANCING THE SURGICAL TECHNIQUES AND THE TECHNOLOGY HE EMPLOYS TO THE BENEFIT OF HIS PATIENTS THE SURGERY HE USED ON MY SON WOULD NOT EVEN HAVE BEEN PERFORMED TWO YEARS AGO AND NOBODY ELSE IN THIS REGION IS DOING IT EVEN TODAY BECAUSE OF HIM MY SON WILL RACE AGAIN AND WILL BE ABLE TO COMPLETE HIS ACTIVE LIFE AS A TEENAGER AND HAVE USE OF THIS KNEE IN HIS ADULT LIFE SIMILARLY THE TREATMENT AND EVEN REPLACEMENT OF CARTILAGE AND THE MANY OTHER ADVANCEMENTS THAT HAVE COME FROM DR STEADMAN'S WORK WILL ALLOW PROFESSIONAL ATHLETES AND WEEKEND WARRIORS TO CONTINUE ACTIVE AND PAINFREE CAREERS AND LIFESTYLES I'M SURE THERE ARE MANY SURGEONS AND PHYSICIANS IN THE US WHO HAVE ABUSED THE HEALTH CARE REIMBURSEMENT SYSTEM AND ENRICHED THEMSELVES TO THE DETRIMENT OF THEIR PATIENTS AND THE PUBLIC WELFARE DR STEADMAN IS DEFINITELY NOT AMONG THEM ALL DOCTORS SHOULD BE SO INNOVATIVE EFFECTIVE AND PROFESSIONAL AND SHOULD GIVE BACK AS MUCH AS RICHARD STEADMAN I HOPE I NEVER NEED TO SEE HIM AGAIN BUT I WILL ALWAYS BE COMFORTED TO KNOW WHERE I CAN FIND HIM AND KNOW THAT HE STANDS CAPABLE OF GIVING BACK THE LIFE THAT IS SO IMPORTANT TO ME AND MINE DR STEADMAN SHOULD STICK TO KNEES AND STAY OUT OF POLITICS NO LAW WILL BE PASSED PREVENTING KNOWLEDGEABLE PATIENTS FROM PAYING EXTRA OUT OF THEIR OWN POCKETS TO HIRE HIM WITH THE DR STEADMANS OF THE PROFESSION CONSUMERS CAN INTELLIGENTLY DECIDE HOW MUCH OF THEIR OWN MONEY TO SPEND THE REAL ABUSES HOWEVER COME FROM THE HOSPITALS AND THE ANONYMOUS DOCTORS WHO PILE THEIR FEES ON THE UNKNOWING CONSUMER AN EXAMPLE IS THE STAFF RADIOLOGIST WHO CHARGES TO READ AN XRAY AFTER IT IS USED BY THE TREATING DOCTOR AND THE PATIENT HAS BEEN DISCHARGED WHAT CONSUMER CAN POSSIBLY MAKE SENSE OUT OF A HOSPITAL BILL AND WHO KNOWS IF THE SERVICES WERE PRICED REASONABLY THE AVERAGE PATIENT NEEDS HELP DOCTORS CHOSEN DIRECTLY BY PATIENTS SHOULD CHARGE WHAT THEY WANT PATIENTS TO PAY ANY EXCESS AND INFORMATION IN THE FORM OF AVERAGE CHARGES FOR SERVICES SHOULD BE PUBLISHED ALL OTHER DOCTORS SHOULD BE HELD TO CHARGE A FAIR RATE CONSUMERS ARE HOPELESS AND HELPLESS IN DEALING WITH HOSPITALS HOSPITAL CHARGES SHOULD BE CAPPED MONEY HAS NEVER BEEN OF PRIMARY INTEREST TO DICK STEADMAN I HAVE SPENT WEEKS AT HIS CLINIC AND HAVE SEEN HIM DEVOTE MANY HOURS TO PEOPLE WHO ARE NOT COVERED BY MEDICAL INSURANCE WHO COULD NOT AFFORD TO PAY FOR MEDICAL EXPENSES AND WHO RECEIVED THE EXACT SAME MAGNIFICENT CARE AS HIS PAYING PATIENTS DR STEADMAN IS A WORLDRENOWNED MEDICAL INNOVATOR AND A GREAT KNEE SURGEON HIS LOVE OF MEDICINE IS EVIDENT TO ANYONE WHO HAS EVER MET HIM HE LIVES TO HEAL PEOPLE HE IS A PERFECT STUDY OF WHAT IS RIGHT WITH THE AMERICAN MEDICAL SYSTEM AND HILARY CLINTON'S TEAM WOULD DO WELL TO USE DICK AND OTHERS LIKE HIM AS EXAMPLES OF WHAT AMERICAN HEALTH CARE SHOULD BE IT IS THE DR STEADMANS OF THIS SOCIETY WHO GENERATE THE COMMON OPINION THAT DOCTORS ARE ALL RAPACIOUS VILLAINS FLEECING THEIR PATIENTS WHAT PATIENT IN PAIN HAS THE OPPORTUNITY TO SHOP FOR THE COST AND QUALITY OF HIS MEDICAL ATTENDANT IT IS NOT CLEAR YET HOW HILLARY CLINTON'S PLAN FOR HEALTH CARE REFORM WILL AFFECT THE ORDINARY DOCTOR'S INCOME BUT I'M SURE MANY OF DR STEADMAN'S AND MY COLLEAGUES WILL BE PLEASED IF IT SEVERELY RESTRICTS DR STEADMAN'S MY LEG MIGHT HAVE BEEN AMPUTATED WITHOUT DR RICHARD STEADMAN MY KNEE DID NOT HEAL AFTER A BOTCHED TIBIA PLATEAU FRACTURE SURGERY IN 1985 AT A MAJOR NEW YORK CITY TEACHING HOSPITAL LIVING ON CRUTCHES I WENT FROM SPECIALIST TO SPECIALIST ON THE EAST COAST THE SURGEONS FAILED TO RECOGNIZE THE PROBLEM A NONUNION OF THE BONE IN DESPERATION I FLEW TO SOUTH LAKE TAHOE DR STEADMAN DIAGNOSED AND REPAIRED MY LEG HIS FEE WAS HALF THAT PROPOSED BY THE VARIOUS MANHATTAN SURGEONS I OPERATE MY OWN SMALL DESIGN FIRM AND AM NOT ROLLING IN DOUGH COLORADO BLUE CROSS BLUE SHIELD SAYS HE'S IN HIS OWN LEAGUE THAT'S RIGHT HE'S FASTER BETTER AND NICER THREE CHEERS FOR DR STEADMAN'S EXCELLENCE I'LL PAY SOMEONE 1 MILLION A YEAR TO IMPROVE THE QUALITY OF MY LIFE BETTER HIM THAN THE LAWYER WHO SUES HIM THE POLITICIAN WHO REGULATES HIM OR THE NASTY CRITICS WHO ATTACK HIM SEE RELATED LETTER LETTERS TO THE EDITOR A TRAP FOR DOCTORS WSJ JUNE 18 1993 9305140100 YY93 MM06 9306170129 930617 LEISURE & ARTS FILM THE MAKING OF A ROCKANDROLL QUEEN BY JULIE SALAMON HERE'S THE IKE AND TINA TURNER STORY IN BRIEF THEY MEET WHEN HE'S ALREADY A MINOR CELEBRITY IN THE ST LOUIS CLUB SCENE AND SHE'S JUST OFF THE FARM HE LIKES HER TALENT SHE LIKES HIS POWER HE MAKES HER A ROCKANDROLL STAR HE'S UPSET THAT SHE UPSTAGES HIM HE WHACKS HER SHE TAKES IT FOR YEARS SHE FINDS BUDDHA THIS GIVES HER THE CONFIDENCE TO WHACK BACK IKE DROPS OUT OF THE PICTURE WHICH BECOMES THE TINA TURNER STORY NOW THIS LEGEND FIRST TOLD IN THE ROCKANDROLL SUPERSTAR'S AUTOBIOGRAPHY I TINA HAS BECOME A MOVIE WHAT'S LOVE GOT TO DO WITH IT NAMED AFTER MS TURNER'S COMEBACK HIT OF A DECADE AGO IS A SURPRISINGLY GOOD MOVIE GIVEN THE MATERIAL'S POTENTIAL FOR WEEPY MELODRAMA IN FACT IT'S A LOT LIKE A TINA TURNER SHOW ENERGETIC ENTERTAINING AND GLEEFULLY UNSUBTLE THE BIG TRICK IN MAKING HOLLYWOOD BIOPICS INTO PLEASURABLE SCHLOCK INSTEAD OF EARNEST MELODRAMA IS FINDING THE RIGHT ACTORS TO PLAY THE PARTS IT'S HARD ENOUGH FINDING BELIEVABLE IMITATIONS OF DEAD FAMOUS PEOPLE IT'S MUCH MORE DIFFICULT TO COME UP WITH ACCEPTABLE FACSIMILES OF LIVE CELEBRITIES ESPECIALLY A STILLVIBRANT PERFORMER LIKE TINA TURNER EVEN WHEN IT'S UNDERSTOOD THAT MS TURNER WILL PROVIDE HER VOICE FOR THE MUSICAL NUMBERS MIRACLES HAPPEN IN UNLIKELY PLACES AND THESE FILMMAKERS FOUND THEIRS IN ANGELA BASSETT A TALENTED STAGE AND FILM ACTRESS PROBABLY MOST WIDELY KNOWN FOR HER PORTRAYAL OF THE JACKSON FIVE'S MOTHER ON THE RECENT TELEVISION MINISERIES MS BASSETT IS SIMPLY AMAZING WITH HER FINEBONED ELEGANCE SHE DOESN'T LOOK ALL THAT MUCH LIKE THE EARTHY MS TURNER AND HER RESUME DOESN'T BOAST EITHER SONG OR DANCE ROLES BOTH ABILITIES CRITICAL TO THE FILM'S PERFORMANCE SET PIECES YET SHE HAS SOMEHOW FOUND THE PASSAGE TO MS TURNER'S SPIRIT TO HER UNIQUELY POIGNANT EROTICISM THIS IS ESPECIALLY AMAZING BECAUSE MS BASSETT HAD TO FILL IN SIGNIFICANT GAPS IN HER CHARACTER AS IS OFTEN THE CASE IN AUTOBIOGRAPHICAL SELFPORTRAITS MS TURNER SEEMS UNNATURALLY SAINTLY OFFSTAGE SHE IS ENDURINGLY SWEET AND FORGIVING NO MATTER HOW MUCH HUSBAND IKE SMACKS HER AROUND YET THAT ROUGH REBELLIOUS EDGE TO HER VOICE WAS THERE LONG BEFORE SHE BECAME HER HUSBAND'S WHIPPING GIRL THAT WAS WHAT IKE CALLED HER FLAIR THE THING THAT MADE HIM SPOT HER IN A CROWD OF WANNABE SINGERS IN FACT THE SCENE SHOWING THAT MOMENT GIVES THE MOVIE'S BEST CLUE TO THE LINK BETWEEN THE WOMAN AND THE PERFORMER IKE IS RUNNING A NIGHTCLUB REVUE WHEN ANNA MAE BULLOCK TINA'S ORIGINAL NAME ARRIVES IN ST LOUIS IN THE LATE 1950S HE IS ALREADY A SUCCESSFUL MUSICIAN A HEARTTHROB AS PART OF HIS OWN LITTLE STAR SEARCH HE HAS WOMEN IN THE AUDIENCE SING TO HIM ON A ROVING MICROPHONE IN EVERY CASE THE SWOONING WOMEN PLAY TO IKE LOCKING EYES IN HOPES OF BECOMING PART OF HIS ACT BUT WHEN SHY SKINNY ANNA MAE ALSO SWOONING AT IKE FROM THE CROWD GETS HOLD OF THE MIKE FOR THE FIRST TIME YOU CAN SEE THAT FOR HER IKE HAS DISAPPEARED THE MINUTE SHE STARTS SINGING THERE'S ONLY ONE OBJECT OF HER AFFECTION THE AUDIENCE THAT'S THE ONLY HINT OF THE WOMAN'S OWN EGO THE ELECTRIC CHARGE SHE GETS FROM ALL THAT ATTENTION THE OTHER CHARACTERIZATIONS IN DIRECTOR BRIAN GIBSON AND SCREENWRITER KATE LANIER'S SHREWD ADAPTATION OF MS TURNER'S BOOK ARE MORE TEXTURED WONDERFUL AS MS BASSETT IS THE PICTURE'S BIG SURPRISE IS LAURENCE FISHBURNE'S IKE HE COULD COME OFF AS JUST ANOTHER SHOWBIZ BUM A GUY WHO RIDES TO GLORY ON HIS WIFE'S COATTAILS AND THEN IS ANGRY AT HER FOR HER SUCCESS MAKE THAT A MEAN SHOWBIZ BUM A BRUTE WHO BEATS HIS WIFE WHEN HE GETS HIGH AND MAKES YOU SUSPECT HE MIGHT GET HIGH JUST TO BEAT HIS WIFE MR FISHBURNE FOR YEARS HAS WON ADMIRATION AS LARRY FISHBURNE IN A WIDE RANGE OF ROLES GOING BACK TO FRANCIS FORD COPPOLA'S APOCALYPSE NOW WHEN HE WAS JUST A TEENAGER NOW AS LAURENCE HE BRINGS UNUSUAL SYMPATHY TO IKE WITHOUT BEGGING FOR IT HE MAKES YOU SEE THAT IKE WASN'T JUST AN OPPORTUNIST HE WAS A BIG TALENT IN HIS WAY HE HAD THE CANNINESS TO SEE TINA'S POTENTIAL BACK WHEN SHE WAS A YOUNG GIRL WHO HADN'T BEGUN TO UNDERSTAND HER OWN AMBITION AND TALENT IN SOME WAYS THE PICTURE IS AN ODDLY LOVING TRIBUTE TO THAT SIDE OF IKE HIS BRUTISHNESS ISN'T UNDERPLAYED NOR IS HIS WEAKSPIRITED JEALOUSY BUT YOU SEE THAT APART FROM THE ATTRACTION ABUSED PEOPLE MAY HAVE FOR THEIR ABUSERS TINA FELT GRATEFUL TO IKE FOR BEING HER CATALYST IN THE END THOUGH THIS IS TINA'S STORY AND MS BASSETT NEVER LETS YOU FORGET IT LIPSYNCHING TO MS TURNER'S VOICE SHE MOVES LIKE A WOMAN POSSESSED BY WHATEVER IT IS THAT POSSESSES MS TURNER WHEN SHE'S PERFORMING WHEN THE REAL TINA TURNER FINALLY MAKES AN APPEARANCE AS HERSELF AT THE END OF THE MOVIE IT SEEMS PERFECTLY NATURAL AS THOUGH SHE'S BEEN ON SCREEN THROUGHOUT GUILTY AS SIN IS MORE OR LESS HOW I FELT FOR GETTING PRETTY CAUGHT UP BY SIDNEY LUMET'S GOOFY MELODRAMA ABOUT A DEFENSE LAWYER WHOSE CLIENT VICTIMIZES HER REBECCA DE MORNAY IS THE LAWYER A COOL CHARACTER OF DUBIOUS INTEGRITY SHE HELPS MOBSTERS WALK AWAY FROM MURDER DON JOHNSON IS THE CLIENT A GIGOLO AND PROUD OF IT HE'S BEEN ACCUSED OF TOSSING HIS WIFE OUT THE WINDOW TO GET HER MONEY THE POINT OF THIS KIND OF STORY IS OF COURSE TO HAVE MS DE MORNAY FEIGN INTELLIGENCE WHILE SWIVELING HER HIPS AND SHE DOES MORE OR LESS AND FOR MR JOHNSON TO BE SCARY WHICH HE IS MORE OR LESS HOWEVER IN THE OLD DAYS MR LUMET OF 12 ANGRY MEN SERPICO DOG DAY AFTERNOON MIGHT HAVE DELVED A LITTLE DEEPER INTO THE MOVIE'S PREMISE THAT THE CLIENT'S CRUELTY TOWARD HIS LAWYER IS HER JUST REWARD FOR DEFENDING EVIL MEN NOWADAYS THE MOVIEMAKING ATMOSPHERE IS SUCH THAT HE'S WILLING TO SETTLE FOR FEIGNED INTELLIGENCE AND SWIVELING HIPS VIDEO TIP EVERY ONCE IN A WHILE IT'S GOOD TO TAKE A LOOK AT THE VERY BEST MOVIE ABOUT A SHOWBIZ COUPLE WITH CAREERS HEADING IN OPPOSITE DIRECTIONS SHE UP HE DOWN THE JUDY GARLAND/JAMES MASON VERSION OF A STAR IS BORN 9306170128 930617 INTERNATIONAL CLUB MED POSTS PROFIT RISE PARIS CLUB MED INC THE US UNIT OF THE FRENCH HOLIDAY COMPANY CLUB MEDITERRANNEE SA SAID NET GROUP PROFIT FOR THE FISCAL FIRST HALF ENDED APRIL 30 ROSE 25 TO 324 MILLION FROM 258 MILLION CLUB MED OWNS OR OPERATES 27 VACATION VILLAGES AND SEVEN VILLAS IN THE US MEXICO THE CARIBBEAN THE SOUTH PACIFIC AND THE INDIAN OCEAN IT ALSO OPERATES WITH ITS PARENT TWO CRUISE SHIPS 9306170127 930617 WHO'S NEWS COLUMBIA GAS SYSTEM INC COLUMBIA GAS SYSTEM INC WILMINGTON DEL WILSON K CADMAN 65 YEARS OLD WAS NAMED A DIRECTOR AT THIS MAJOR UTILITY INCREASING THE BOARD TO 16 MEMBERS MR CADMAN IS THE FORMER CHAIRMAN AND PRESIDENT OF KANSAS GAS & ELECTRIC CO AND RETIRED VICE CHAIRMAN OF WESTERN RESOURCES INC THE COMPANY FORMED IN 1992 AFTER THE MERGER BETWEEN KANSAS GAS & ELECTRIC AND KANSAS POWER & LIGHT CO 9306170126 930617 WHO'S NEWS CAPITAL CITIES/ABC INC CAPITAL CITIES/ABC INC NEW YORK HOWARD C KATZ 43 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT OF PRODUCTION AT ESPN INC THE SPORTS CABLE NETWORK OF THIS BROADCASTER MR KATZ WHOSE POSITION AT ESPN IS NEWLY CREATED HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER AT OHIMEYER COMMUNICATIONS CO A LOS ANGELES UNIT OF ESPN MR KATZ WILL ALSO SERVE AS GENERAL MANAGER OF OHIMEYER A SUCCESSOR FOR HIM AS PRESIDENT AND CHIEF OPERATING OFFICER HASN'T YET BEEN NAMED 9306170125 930617 SEAGULL DISCOVERS NATURAL GAS HOUSTON SEAGULL ENERGY CORP SAID IT DISCOVERED NATURAL GAS IN THE GULF OF MEXICO IN 79 FEET OF WATER 60 MILES SOUTHWEST OF FREEPORT TEXAS THE DISCOVERY IN BRAZOS BLOCK NO 552 IN THE GULF FLOWED AT A RATE OF 94 MILLION CUBIC FEET OF GAS A DAY THROUGH A 26/64INCH CHOKE IN DEPTHS BETWEEN 5900 FEET AND 6000 FEET SEAGULL IS THE OPERATOR AND HAS A 50 INTEREST IN THE BLOCK SUBSIDIARIES OF ASHLAND OIL INC ASHLAND KY AND MITCHELL ENERGY & DEVELOPMENT CORP THE WOODLANDS TEXAS EACH HAS A 25 INTEREST SEAGULL SAID THAT NOBLE AFFILIATES INC IS DRILLING A WELL ON AN ADJACENT BLOCK IN THE GULF IF THE WELL IS SUCCESSFUL SEAGULL AND ITS PARTNERS AGREED TO DEVELOP THE GAS JOINTLY FROM BOTH BLOCKS SEAGULL SAID IT EXPECTS INITIAL PRODUCTION NEXT YEAR 9306170124 930617 MOBIL CORP WELL TEST FAIRFAX VA MOBIL CORP SAID IT DRILLED A WELL IN THE GULF OF MEXICO THAT IN A PRODUCTION TEST FLOWED MORE NATURAL GAS THAN ANY IT HAS DRILLED IN THE GULF THE WELL IN THE EAST CAMERON BLOCK NO 286 OF THE GULF LOCATED IN 180 FEET OF WATER ABOUT 72 MILES SOUTH OF CAMERON LA TESTED AT 73 MILLION CUBIC FEET OF GAS A DAY THROUGH A 76/64INCH OPENING THE TEST WAS RUN AT DEPTHS BETWEEN 10320 FEET AND 10758 FEET MOBIL SAID THE WELL IS THE THIRD IN A DEVELOPMENT DRILLING PROGRAM STARTED LATE LAST YEAR MOBIL IS THE OPERATOR OF THE PROGRAM AND HAS A 50 INTEREST IN THE BLOCK CHEVRON CORP SAN FRANCISCO HAS THE REMAINING INTEREST 9306170123 930617 WHO'S NEWS FEDERAL NATIONAL MORTGAGE ASSOCIATION FEDERAL NATIONAL MORTGAGE ASSOCIATION WASHINGTON FOUR VICE PRESIDENTS WERE NAMED AT THIS CONGRESSIONALLY CHARTERED INVESTOR IN HOME MORTGAGES JEFFERY R HAYWARD 37 YEARS OLD WAS NAMED VICE PRESIDENT FOR RISK MANAGEMENT AND WILL COORDINATE COMMUNICATIONS FOR THE COMPANY'S FIVE REGIONAL OFFICES AND FANNIE MAE'S MARKETING FINANCIAL ANALYSIS AND CREDIT POLICY DEPARTMENTS MR HAYWARD WHOSE POSITION IS NEWLY CREATED WAS DIRECTOR OF LOAN ACQUISITION IN FANNIE MAE'S NORTHEASTERN REGIONAL OFFICE IN PHILADELPHIA LEANNE G SPENCER 37 WAS NAMED VICE PRESIDENT FOR FINANCIAL REPORTING MS SPENCER WHO WAS DIRECTOR OF FINANCIAL REPORTING SUCCEEDS LESLIE FALMON 36 NOW MULTIFAMILY CONTROLLER FOR THE COMPANY CRAIG D WILDRICK 41 WAS NAMED VICE PRESIDENT FOR OPERATIONS RESPONSIBLE FOR ESTABLISHING A BUSINESS UNIT TO REDESIGN THE PROCESSING SYSTEM FOR PACKAGING FANNIE MAE'S MORTGAGEBACKED SECURITIES MR WILDRICK WHOSE POSITION IS NEWLY CREATED WAS SENIOR VICE PRESIDENT AND CHIEF OPERATIONS OFFICER WITH CONTINENTAL INFORMATION SYSTEMS CORP IN SYRACUSE NY BARRY ZIGAS 42 WAS NAMED VICE PRESIDENT FOR HOUSING IMPACT POLICY MR ZIGAS WAS PRESIDENT OF THE NATIONAL LOW INCOME HOUSING COALITION AND EXECUTIVE SECRETARY OF THE LOW INCOME HOUSING INFORMATION SERVICE A HOUSING ADVOCACY MEMBERSHIP ORGANIZATION AND ITS AFFILIATED RESEARCH AND POLICY GROUP IN WASHINGTON HE SUCCEEDS JERRY MCMURRAY 51 NOW A VICE PRESIDENT FOR PUBLIC POLICY AND GOVERNMENT RELATIONS FOR FANNIE MAE 9306170122 930617 WHO'S NEWS CORE INDUSTRIES INC CORE INDUSTRIES INC BLOOMFIELD HILLS MICH RAYMOND H STEBEN JR HAS JOINED CORE AS VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF THE MANUFACTURER OF DIVERSIFIED ELECTRONIC PRODUCTS AND SPECIALTY PRODUCTS FOR FARMING AND CONSTRUCTION MR STEBEN 54 YEARS OLD WAS FORMERLY VICE PRESIDENT FINANCE AND CHIEF FINANCIAL OFFICER OF BUNDY CORP A WARREN MICHBASED AUTO PARTS SUPPLIER HE SUCCEEDS THE ACTING CHIEF FINANCIAL OFFICER LAWRENCE MURPHY 51 WHO ASSUMED THE POST IN FEBRUARY AFTER NEIL WESTER 53 RESIGNED AS FINANCIAL CHIEF AND VICE PRESIDENT FINANCE MR MURPHY WILL REMAIN WITH THE COMPANY AS EXECUTIVE VICE PRESIDENT 9306170121 930617 INDUSTRY FOCUS JAPAN'S MACHINETOOL INDUSTRY IS MIRED IN RECORD SLUMP EVEN AFTER ORDERS PICK UP CAPACITY GLUT IS EXPECTED TO RESTRAIN RECOVERY BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S MACHINETOOL INDUSTRY THE WORLD'S LARGEST IS STRUGGLING THROUGH ITS WORST SLUMP ON RECORD AND HAS BATTENED DOWN THE HATCHES FOR A LONG SPELL OF ROUGH GOING THE MACHINETOOL MAKERS REMAIN CONFIDENT THAT THEY HOLD A COLLECTIVE COMPETITIVE EDGE OVER THEIR FOREIGN RIVALS NONETHELESS FEW IN JAPAN HAVE BEEN HAMMERED HARDER BY THE NATION'S ECONOMIC SLUMP THAN THE TOOL COMPANIES THE BACKBONE OF THE JAPANESE MANUFACTURING SECTOR ORDERS TO THE COMPANIES WHICH MAKE MACHINES THAT CUT GRIND AND DRILLPRODUCTS THAT MANUFACTURERS IN JAPAN AND ABROAD USE TO MAKE EVERYTHING FROM CARS TO COMPUTERS FELL 38 LAST YEAR TO 710 BILLION YEN 672 BILLION HALF OF THE 1990 PEAK THIS YEAR LOOKS GRIM TOO ANALYSTS SAY MACHINETOOL DEMAND WON'T BEGIN TO TURN AROUND UNTIL AUTUMN AT THE EARLIEST AND MOST TOP MACHINETOOL MAKERS EXPECT LOSSES FOR A SECOND CONSECUTIVE YEAR IN JAPAN ORDERS FROM THE MACHINETOOL COMPANIES' BEST CUSTOMERS HAVE TUMBLED JAPANESE AUTO MAKERS WHICH ACCOUNT FOR ABOUT 20 OF THE TOOL MAKERS' SALES HAVE BEEN CUTTING THEIR CAPITALSPENDING BUDGETS BECAUSE CAR SALES IN JAPAN HAVE BEEN FALLING FOR MORE THAN TWO YEARS THE INDUSTRY DOESN'T EXPECT MUCH HELP FROM ABROAD EITHER EXPORTS HAVE PROVIDED THE INDUSTRY WITH A CRUTCH DURING PREVIOUS DOMESTIC SLOWDOWNS BUT POOR OVERSEAS DEMAND AND THE YEN'S STRENGTH ARE WEAKENING DEMAND THIS TIME IN THE US JAPANESE MACHINETOOL SALES WILL BE LIMITED BY AN EXPORTRESTRAINT AGREEMENT THAT RUNS THROUGH THIS YEAR SAYS SHIGEO OHBA DIRECTOR OF RESEARCH FOR THE JAPAN MACHINETOOL BUILDERS ASSOCIATION AND CUTS IN US MILITARY SPENDING MEAN THE JAPANESE MAKERS CAN'T EXPECT MUCH DEMAND FROM MAKERS OF WEAPONS AND AIRCRAFT HE ADDS IT'S THE WORST RECESSION IN HISTORY SAYS AKINORI INUKAI A SPOKESMAN FOR OKUMA CORP A SUBSTANTIAL RECOVERY IN OKUMA'S ORDERS IS UNLIKELY THIS YEAR HE ADDS OKUMA MAKES COMPUTERCONTROLLED LATHES AND MEDIUMSIZE AND LARGE MACHINING CENTERS WHICH PERFORM A NUMBER OF FUNCTIONS SUCH AS DRILLING AND CUTTING IT POSTED A PRETAX LOSS OF 57 BILLION YEN FOR THE FISCAL YEAR ENDED MARCH 31 AND EXPECTS A LOSS OF FOUR BILLION YEN THIS FISCAL YEAR EVEN AFTER ORDERS PICK UP THE MACHINETOOL COMPANIES SAY THEIR RECOVERY WILL BE SLOW JAPANESE MANUFACTURERS CURRENTLY HAVE A GLUT OF PRODUCTION CAPACITY JAPANESE CORPORATE CAPITAL SPENDING INCLUDING OUTLAYS ON PLANT AND EQUIPMENT WILL FALL 66 THIS YEAR ACCORDING TO INDUSTRIAL BANK OF JAPAN LTD NOR IN THE LONGER RUN IS DOMESTIC DEMAND FOR MACHINE TOOLS LIKELY TO TAKE OFF GROWTH IN CONSUMPTION OF THE GOODS TURNED OUT BY JAPANESE MANUFACTURERS IS GRADUALLY SLOWING AS MARKETS IN JAPAN THE US AND EUROPE MATURE THESE TRENDS COULD MEAN YEARS OF SLUGGISH ORDERS FOR THE MACHINETOOL COMPANIES THE MACHINETOOL SLUMP ALSO IS BAD NEWS FOR THE BROADER JAPANESE ECONOMY AS CORPORATE CAPITAL SPENDING ACCOUNTS FOR 18 OF JAPAN'S TOTAL ECONOMIC OUTPUT MR OHBA OF THE MACHINETOOL ASSOCIATION SAYS IT IS INCONCEIVABLE THAT MACHINETOOL ORDERS WILL RECOVER BEFORE THE END OF THE CENTURY TO 1990'S PEAK OF 14 TRILLION YEN IN THE US BY CONTRAST ORDERS ROSE 27 IN 1993'S FIRST FOUR MONTHS TO 114 BILLION FROM 896 MILLION A YEAR EARLIER ACCORDING TO THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY A TRADE GROUP STILL THE ORDER INFLUX HAS BEEN LIMITED LARGELY TO SEVERAL PRODUCERS MAINLY THOSE SERVING THE BIG THREE AUTO MAKERS THE AUTO MAKERS ARE BUYING MACHINE TOOLS IN A BID TO BOOST PRODUCTIVITY AND TURN OUT PRODUCTS FASTER OTHER CUSTOMERS ARE ORDERING MACHINE TOOLS TO IMPROVE THE MANUFACTURING PROCESS NOT NECESSARILY BECAUSE THE ECONOMY IS STRENGTHENING EXPERTS SAY DESPITE THEIR SLUMP THE JAPANESE MACHINETOOL MAKERS CONTINUE TO BELIEVE THEY HOLD AN EDGE OVER THEIR FOREIGN RIVALS PARTICULARLY IN SMALL AND MEDIUMSIZE COMPUTERCONTROLLED MACHINES FOR GENERAL USE IN THAT FIELD JAPANESE COMPANIES SAY THEIR CLOSEST COMPETITORS ARE WITHIN JAPAN AMERICAN MAKERS EXCEL AT PRODUCING LARGE MACHINES FOR MAKING AIRCRAFT AND CERTAIN AUTO PARTS AND AT TURNING OUT HIGHTECH MACHINE TOOLS THAT USE LASERS AND ELECTRON BEAMS JAPAN HAD A SURPLUS OF 8487 BILLION YEN WITH THE US IN MACHINETOOL TRADE LAST YEAR SAYS THE JAPANESE INDUSTRY GROUP JAPANESE COMPANIES AREN'T WORRIED ABOUT LOWCOST COMPETITORS IN SOUTH KOREA AND TAIWAN MR OHBA SAYS BECAUSE MAKERS THERE STILL RELY ON JAPANESE EQUIPMENT TO PRODUCE THEIR OWN MACHINE TOOLS INDEED THE JAPANESE INDUSTRY ACCOUNTED FOR 28 OF THE WORLD'S PRODUCTION OF CUTTINGMACHINE TOOLS IN 1992 HOLDING THE HIGHEST PERCENTAGE FOR THE 11TH CONSECUTIVE YEAR ACCORDING TO THE ASSOCIATION GERMAN COMPANIES HELD A 21 SHARE AND THIRDRANKED US COMPANIES HAD 93 EXPORTS ACCOUNT FOR 30 TO 40 OF THE JAPANESE INDUSTRY'S SALES IN MOST YEARS SOUND FINANCIALLY ALTHOUGH THEY ARE SLUMPING THE JAPANESE COMPANIES REMAIN ON SOUND FINANCIAL FOOTING BECAUSE THEY BUILT UP LARGE RESERVES OF RETAINED EARNINGS AND RAISED FUNDS IN THE CAPITAL MARKET DURING THE FAT YEARS OF THE LATE 1980S BECAUSE OF A LABOR SHORTAGE THEY WERE UNABLE TO BUILD UP CAPACITY AS MUCH AS THEY WOULD HAVE LIKED A FAILURE THAT TURNED OUT TO BE A BLESSING WHEN THE BOOM WENT BUST EVEN SO THE INDUSTRY IS TAKING STEPS TO REDUCE COSTS ONE EXAMPLE IS TSUGAMI CORP A MAKER OF LATHES AND MACHINING CENTERS WHICH INCURRED A PRETAX LOSS OF 153 BILLION YEN IN THE FISCAL YEAR ENDED MARCH 31 AND A 41 DECLINE IN SALES TO 1256 BILLION YEN A COMPANY SPOKESMAN SAYS TSUGAMI AIMS TO HOLD ITS LOSS IN THE CURRENT FISCAL YEAR TO 200 MILLION YEN ON ABOUT THE SAME AMOUNT OF SALES BY CUTTING COSTS IT PLANS TO REDUCE THE NUMBER OF MODELS OF MACHINE TOOLS IT MAKES BY 30 TO ABOUT 50 TO TRIM LABOR AND SALES EXPENSES IT RECENTLY ENTRUSTED ALL OF ITS DIRECT MARKETING IN JAPAN TO AN AFFILIATED COMPANY LAST AUTUMN TSUGAMI LAID OFF ALMOST ALL OF ITS ABOUT 50 PARTTIME WORKERS OTHER COMPANIES SAY THEY PLAN TO IMPORT MORE PARTS TO LOWER THEIR COSTS AND TO DEAL WITH THE IMPACT OF THE STRONG YEN WHICH MAKES JAPANESE GOODS MORE EXPENSIVE ABROAD AND FOREIGN GOODS LESS EXPENSIVE IN YEN TERMS HITACHI SEIKI CO A MAKER OF LATHES AND MACHINING CENTERS SAYS IT MAY BUY MORE LATHE PARTS FROM HITACHI SEIKI USA CO ITS SUBSIDIARY IN HUNTSVILLE ALA SODICK CO A MAKER OF MACHINES THAT CUT METAL WILL MOVE THE ASSEMBLY OF TWO KINDS OF ITS MACHINES TO THAILAND FROM JAPAN TO COPE WITH THE HIGHER YEN EARLY THIS YEAR SODICK LAID OFF 250 WORKERS 22 OF ITS WORK FORCE TO ENSURE THAT RECESSIONBATTERED JAPANESE MAKERS DON'T DUMP THEICHINES AT CUTRATE PRICES OVERSEAS THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY FEARFUL OF THE POLITICAL REPERCUSSIONS OF SUCH A MOVE HAS BEGUN MONITORING THE COMPANIES' EXPORT PRICES THE COMPANIES SAY THEY GENERALLY WELCOME THE INTERFERENCE BECAUSE IT COULD HELP HOLD UP PRICES 9306170120 930617 INTERNATIONAL JAPANESE STEEL OUTPUT UP TOKYO JAPAN'S STEEL PRODUCTION IN MAY ROSE 87 TO 8950000 METRIC TONS STRETCHING THE LENGTH OF YEARONYEAR GAINS TO SIX MONTHS THE JAPAN IRON AND STEEL FEDERATION SAID A METRIC TON IS 22046 POUNDS A FEDERATION SPOKESMAN ATTRIBUTED THE GAIN LARGELY TO SHIPMENTS TO CHINA WHERE DOMESTIC DEMAND REMAINS ROBUST IN JAPAN HOWEVER DEMAND FOR STEEL FROM SUCH INDUSTRIES AS AUTO AND HOME ELECTRONICS CONTINUES TO BE WEAK MAY'S OUTPUT WAS UP 61 FROM APRIL 9306170119 930617 CHRYSLER'S ELECTRIC VAN WINS CALIFORNIA APPROVAL DETROIT AP CALIFORNIA HAS APPROVED CHRYSLER CORP'S ELECTRICALLY POWERED DODGE CARAVAN AS A SOCALLED ZEROEMISSION VEHICLE FOUR YEARS AHEAD OF A STATE DEADLINE YESTERDAY'S CERTIFICATION BY THE AIR RESOURCES BOARD IS THE FIRST FOR A MAJOR AUTO MAKER UNDER RULES REQUIRING 2 OF VEHICLE SALES IN THE STATE TO BE OF POLLUTIONFREE VEHICLES BY 1998 THE CERTIFICATION CLEARS THE WAY FOR CHRYSLER TO COMPLETE EARLIERARRANGED SALES OF 50 OF THE TEVANS TO ELECTRIC UTILITIES THE VANS COST 120000 EACH MAKING IT UNLIKELY THE CONVERTED CARAVAN WILL EVER BE MASS PRODUCED THE CHRYSLER VAN IS POWERED BY 30 SIXVOLT BATTERIES WITH A LIFE EXPECTANCY OF 100000 MILES AND AN OPERATING RANGE OF 80 MILES BETWEEN CHARGES IT HAS A TOP SPEED OF 65 MILES AN HOUR AND ACCELERATES FROM ZERO TO 50 IN 27 SECONDS 9306170118 930617 INTERNATIONAL KAZAKHSTAN'S OIL ESTIMATES SPARK RUSH TO RISKY REGION BY NATALIA A FEDUSCHAK SPECIAL TO THE WALL STREET JOURNAL ALMAATA KAZAKHSTAN WHEN SEVEN OIL COMPANIES AGREED LAST WEEK TO EXPLORE THE KAZAKHSTAN PORTION OF THE CASPIAN SEA THE ANNOUNCEMENT RENEWED CHATTER ABOUT THE NEXT KUWAIT EMERGING IN FORMER SOVIET CENTRAL ASIA NEVER MIND THAT NOBODY HAS FOUND EVEN A DROP OF OIL UNDERWATER ON THE KAZAKHSTAN SIDE OF THE CASPIAN THOUGH OIL HAS BEEN FOUND ON THE WESTERN SIDE OFF AZERBAIJAN STILL THE POSSIBILITIES HAVE DOLLAR SIGNS DANCING IN PEOPLE'S EYES KAZAKHSTAN'S OFFSHORE REGION IS KNOWN TO BE RICH IN NATURAL GAS THEN THERE IS THE REPUBLIC'S HUGE ONSHORE TENGIZ OIL FIELD NEARBY THOUGHT TO CONTAIN AS MUCH AS 20 BILLION BARRELS OF OIL WHICH CHEVRON CORP RECENTLY AGREED TO HELP DEVELOP BACK IN THE MID1970S THE SOVIETS ESTIMATED THERE WERE 35 BILLION BARRELS OF OIL UNDERNEATH THE CASPIAN ALASKA'S PRUDHOE BAY A HUGE FIND HAD ABOUT 25 BILLION BARRELS OF OIL OF WHICH A REMARKABLY HIGH 12 BILLION BARRELS WERE DEEMED PROVEN AND RECOVERABLE KUWAIT HAS 965 BILLION BARRELS OF PROVEN RESERVES IF THE OLD SOVIET ESTIMATES PAN OUT KAZAKHSTAN COULD ONE DAY RANK AMONG THE LEADING OILPRODUCING NATIONS BUT THAT'S A BIG IF BEFORE IT CAN BRING EVEN ONE BARREL TO MARKET THE NEWLY INDEPENDENT NATION MUST OVERCOME AT LEAST TWO MAJOR OBSTACLES INVESTMENT AND GEOGRAPHY FOR ALL THE GOLDRUSH HYPE AND EXCITEMENT AMONG KAZAKH OFFICIALS IT'S CLEAR THAT THEY DON'T HAVE A CLUE AS TO WHAT MAY REALLY BE UNDER THE CASPIAN SAYS AN OFFICIAL OF ONE OF THE COMPANIES IN THE EXPLORATION PROGRAM SEISMIC SURVEYS ON WHICH THE ESTIMATES SO FAR ARE BASED CAN ONLY IDENTIFY GEOLOGIC STRUCTURES THAT COULD CONTAIN OIL THE ONLY WAY TO FIND OUT IS TO UNDERTAKE THE FINANCIALLY RISKY EXPLORATORY DRILLING STILL PRELIMINARY ESTIMATES IN THE CASPIAN ARE INTRIGUING ENOUGH THAT KAZAKHSTAN WAS ABLE TO ATTRACT A HIGHPOWERED CONSORTIUM TO CONDUCT GEOLOGIC AND ENVIRONMENTAL STUDIES THE GROUP CONSISTS OF MOBIL CORP ITALY'S AGIP SPA BRITISH GAS PLC ROYAL DUTCH/SHELL GROUP'S UNIT SHELL EXPLORATION BV OF THE NETHERLANDS FRANCE'S TOTAL SA AND A PARTNERSHIP BETWEEN BRITISH PETROLEUM PLC AND NORWAY'S STATOIL THE MAJOR OIL COMPANIES WANT TO HAVE A PART OF THE ACTION BUT THEY DON'T WANT TO BE THE ONLY ONE TAKING THE RISK SAYS A SENIOR WESTERN OFFICIAL WHO REQUESTS ANONYMITY EACH PONIED UP 5 MILLION TO SIGN THE PRELIMINARY AGREEMENT LAST WEEK AND EACH WILL PAY 75 MILLION MORE TO SIGN THE FINAL AGREEMENT IN THE FALL THEN THE PARTNERS ARE TO BANKROLL THREE YEARS OF EXPLORATORY DRILLING COSTING AS MUCH AS 150 MILLION STILL THAT'S PEANUTS COMPARED WITH THE BILLIONS OF DOLLARS REQUIRED TO START PRODUCTION SHOULD OIL BE FOUND LINING UP PARTNERS WITH DEEP POCKETS IS KAZAKHSTAN'S STRATEGY FOR OVERCOMING THE FIRST AND MOST PRESSING OF THE OBSTACLES IT FACES THE CASHSHORT NATION ISN'T UP TO THE TASK ALONE AND IT KNOWS IT THE IDEA TO EXPLORE THE CASPIAN HAD EXISTED FOR A LONG TIME SAYS BALTABEK M KUANDYKOV PRESIDENT OF THE NEW STATE OIL COMPANY KAZAKHSTANCASPISHELF WHICH IS AN EIGHTH MEMBER OF THE CONSORTIUM AND WILL ACT AS THE OPERATOR SPECIALISTS HAVE SAID KAZAKHSTAN'S SHELF OF THE CASPIAN SEA IS RICH BUT WE HAVE NO EXPERIENCE IN WORKING OFFSHORE AND WE'VE EXPRESSED THAT OPENLY WE WANT TO LEARN FROM EXPERIENCED COMPANIES THAT HAVE WORKED IN ANALOGOUS CONDITIONS WITH A NEW FOREIGN INVESTMENT LAW IN PLACE THE KAZAKHS ARE OFFERING THE PROMISE OF NO NATIONALIZATION AND THE CHANCE TO SHARE IN POTENTIALLY RICH PRODUCTION AND THE MORE COMPANIES ARE INVOLVED THE MORE INTEREST IN INVESTING IN KAZAKHSTAN IS LIKELY TO SPREAD THE THINKING GOES KAZAKHSTAN'S OTHER OBSTACLE TO OIL RICHES IS GEOGRAPHY FOUR OTHER NATIONS BORDER ON THE CASPIAN SEA RUSSIA AZERBAIJAN TURKMENISTAN AND IRAN AND BORDERS ON THE SEA ARE STILL BEING WORKED OUT BUT KAZAKHSTAN ITSELF BIG ENOUGH TO ENCOMPASS GERMANY FRANCE BRITAIN SPAIN SWEDEN AND NORWAY IS SQUEEZED BETWEEN CHINA RUSSIA AND A HANDFUL OF OTHER UNFRIENDLY FORMER SOVIET REPUBLICS SO THE PROBLEM WILL BE HOW TO GET ITS OIL TO MARKET THE MOST LIKELY OPTION WOULD INVOLVE EXPORTING VIA RUSSIA'S PIPELINE SYSTEM TURKMENISTAN ALSO IS LANDLOCKED AZERBAIJAN IS FIGHTING A WAR WITH ARMENIA AND WORKING WITH FUNDAMENTALIST IRAN IS POLITICALLY UNATTRACTIVE BUT MANY FOREIGNERS HAVE THEIR WORRIES ABOUT THE RUSSIANS EVEN THOUGH OFFICIALS IN ALMAATA INSIST THEY HAVE GOOD RELATIONSHIPS WITH MOSCOW ALREADY RUSSIA HAS BEEN RELUCTANT TO AGREE TO OIL SWAPS AND IT ISN'T EVEN CERTAIN THAT NEGOTIATIONS OF BOUNDARIES IN THE CASPIAN WILL GO SMOOTHLY RIGHT NOW RUSSIA IS A POLITICALLY UNSTABLE AREA SAYS RAY DARNELL DIRECTOR OF PETROLEUM SERVICES FOR PRICE WATERHOUSE THERE IS MOTIVATION ON RUSSIA'S PART TO KEEP CONTROL OF THEIR FORMER STEPCHILD THE QUESTION SAYS MR DARNELL IS WHETHER COMMON SENSE AND GREED WILL WIN OUT LEADING RUSSIA TO ACCEPT FEES FOR TRANSPORTING KAZAKH OIL GOVERNMENT OFFICIALS AND INDUSTRY EXPERTS IN ALMAATA SAY THE NORTHERN PART OF KAZAKHSTAN'S PORTION OF THE CASPIAN SEA IS THE MOST PROMISING PRELIMINARY STUDIES SHOW THE OIL THERE MAY BE SIMILAR TO THAT IN THE TENGIZ FIELD WHICH IS OF HIGH QUALITY BUT ALSO CONTAINS SIGNIFICANT AMOUNTS OF SULFUR AND MERCAPTAIN THESE SUBSTANCES MUST BE REMOVED BEFORE THE OIL IS TRANSPORTED ADDING TO THE COST ANOTHER COSTLY FACTOR IS THE EXPECTED DEPTH OF THE WELLS AS MUCH AS TWO AND A HALF MILES THE NORTHERN CASPIAN IS ALSO A NATURE PRESERVE AND HOLDS THE MAJORITY OF THE FORMER SOVIET UNION'S CAVIARPRODUCING STURGEON FISHERIES EXTENSIVE ENVIRONMENTAL STUDIES WILL BE REQUIRED BEFORE ANY DRILLING CAN BEGIN 9306170117 930617 WHO'S NEWS SPAGHETTI WAREHOUSE INC SPAGHETTI WAREHOUSE INC GARLAND TEXAS CHAIRMAN AND FOUNDER ROBERT R HAWK 66 YEARS OLD ANNOUNCED HE WILL STEP DOWN WHEN HIS CURRENT TERM ENDS OCT 25 THE RESTAURANT CHAIN SAID MR HAWK RECOMMENDED THAT PRESIDENT AND CHIEF EXECUTIVE OFFICER LOUIS P NEEB 54 SUCCEED HIM MR NEEB HAS BEEN A DIRECTOR SINCE 1989 AND SUCCEEDED MR HAWK AS PRESIDENT AND CEO WHEN MR HAWK RETIRED IN JULY 1991 MR HAWK WILL CONTINUE TO SERVE AS A DIRECTOR AND A CONSULTANT 9306170116 930617 TREASURY PLANS TO RAISE 54 BILLION WITH SALE OF NOTES NEXT WEEK WASHINGTON THE TREASURY PLANS TO RAISE 54 BILLION NEXT WEEK WITH THE SALE OF 16 BILLION OF TWOYEAR NOTES TUESDAY AND 11 BILLION OF FIVEYEAR NOTES WEDNESDAY THE BALANCE OF THE PROCEEDS WILL BE USED TO REDEEM 2159 BILLION IN MATURING TWO AND FIVEYEAR NOTES THE CUSIP NUMBER FOR THE TWOYEAR NOTES IS 912827L34 THE CUSIP NUMBER FOR THE FIVEYEAR NOTES IS 912827L42 NONCOMPETITIVE TENDERS FOR THE TWOYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 5000 MUST BE RECEIVED BY NOON EASTERN TIME TUESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT NONCOMPETITIVE TENDERS FOR THE FIVEYEAR NOTES AVAILABLE IN MINIMUM DENOMINATIONS OF 1000 MUST BE RECEIVED BY NOON EDT WEDNESDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS MUST BE RECEIVED BY 1 PM EDT 9306170115 930617 TECHNOLOGY CATALYTIC CONVERTER FROM MAZDA SEEKS TO BOOST MILEAGE BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO MAZDA MOTOR CORP SAID IT DEVELOPED A CATALYTIC CONVERTER THAT BOOSTS FUEL ECONOMY AND CUTS EMISSIONS OF POLLUTANTS A POTENTIALLY BIG ADVANCE IN AUTOMOTIVE TECHNOLOGY SPOKESMEN FOR TWO RIVAL JAPANESE AUTO MAKERS SAID THAT IF THE CONVERTER DESIGNED FOR SOCALLED LEANBURN ENGINES WORKS AS MAZDA SAYS IT COULD LEAD TO GREATER USE OF THE LEANBURN TECHNOLOGY LEANBURN ENGINES USE MORE AIR AND LESS FUEL TO PRODUCE POWER AND ARE THUS MORE FUELEFFICIENT THAN CONVENTIONAL ENGINES THE TECHNOLOGY HAS MORE POTENTIAL OUTSIDE THE US WHERE FUEL PRICES ARE HIGHER MAZDA SAYS THE CONVERTER DELIVERS BETWEEN 5 AND 8 BETTER FUEL EFFICIENCY THAN COMPARABLE CONVERTERS IT DIDN'T SAY HOW MUCH THE DEVICE CUTS EMISSIONS THE CONVERTER HOWEVER HAS AT LEAST ONE SERIOUS LIMITATION LIKE EXISTING CATALYTIC CONVERTERS FOR LEANBURN ENGINES IT DOESN'T MEET THE STRICT EMISSIONS REQUIREMENTS OF CALIFORNIA BUT MAZDA IS STILL WORKING TO IMPROVE THE DEVICE LEANBURN ENGINES ARE USED IN ONLY A LIMITED NUMBER OF MODELS TODAY CHIEFLY SMALL CARS SUCH AS THE MOST FUELEFFICIENT VERSION OF HONDA MOTOR CO'S CIVIC WHICH HASN'T BEEN A BIG SELLER IN THE US MAZDA DOESN'T YET OFFER SUCH AN ENGINE ON ITS OWN MODELS IT SAYS IT WILL INSTALL ONE ALONG WITH THE NEW CONVERTER IN A SUBCOMPACT CAR TO BE INTRODUCED DURING THE NEXT TWO YEARS THE PROBLEM WITH EXISTING LEANBURN ENGINE TECHNOLOGY IS THAT IT PERMITS THE EMISSION OF MORE NITROGEN OXIDES THAN CONVENTIONAL ENGINES ELIMINATING POLLUTANTS IS THE JOB OF THE CATALYTIC CONVERTER WHICH PASSES EXHAUST OVER A CATALYST CATALYSTS CAUSE CHEMICAL REACTIONS CHANGING POLLUTANTS SUCH AS HYDROCARBONS TO OTHER SUBSTANCES SUCH AS WATER MAZDA SAYS IT HAS DEVELOPED A CATALYST MADE WITH A MATERIAL CALLED ZEOLITE WHICH IS COATED WITH A MIXTURE OF PRECIOUS METALS MAZDA SAYS THIS COMBINATION DOES A BETTER JOB THAN EXISTING LEANBURN CONVERTERS OF PURIFYING NITROGEN OXIDES IN RECENT YEARS PLATINUM PRICES HAVE SURGED ON RESEARCH INVOLVING CATALYTIC CONVERTERS BECAUSE SUCH CONVERTERS GENERALLY USE PLATINUM A MAZDA SPOKESMAN IN DETROIT WOULDN'T SAY WHETHER THE COMPANY'S NEW CONVERTER CONTAINED PLATINUM HOWEVER AND METALS ANALYSTS SAID YESTERDAY'S ANNOUNCEMENT HAD LITTLE IF ANY EFFECT ON PRICES PLATINUM FOR JULY DELIVERY ROSE 280 TO 38350 IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE MAZDA'S STOCK CLOSED AT 521 YEN 493 UP 16 YEN OR 32 IN TOKYO STOCK EXCHANGE TRADING NEWS OF THE DEVELOPMENT CAME DURING THE AFTERNOON SESSION 9306170114 930617 BUSINESS BRIEF CYANAMID IN TALKS TO BUY PESTICIDE UNIT FROM SHELL TRANSPORT WAYNE NJ AMERICAN CYANAMID CO IS IN DISCUSSIONS WITH THE SHELL TRANSPORT & TRADING CO TO NEGOTIATE CYANAMID'S PURCHASE OF SHELL'S PESTICIDE OPERATION THE COMPANIES SAID CYANAMID IS CONSIDERING PURCHASING ALL OF SHELL'S CROP PESTICIDE PRODUCTS AND MARKETING ACTIVITIES INCLUDING A MANUFACTURING SITE IN PAULINA BRAZIL A BIOSCIENCES RESEARCH STATION IN SCHWABENHEIM GERMANY AND A FORMULATION FACILITY IN GENAY FRANCE SHELL IS A UNIT OF ROYAL DUTCH/SHELL GROUP THE ANGLODUTCH OIL COMPANY THE COMPANIES HAVE NOT REACHED AN AGREEMENT ON TERMS OF THE SALE AND EMPLOYEE ISSUES ARE BEING DISCUSSED WITH SHELL'S LABOR GROUPS WHICH REPRESENT 2200 PESTICIDE WORKERS IN 1992 SHELL HAD ABOUT 700 MILLION IN SALES OF PESTICIDE PRODUCTS ALL OUTSIDE THE US AND CANADA SHELL SOLD ITS US PESTICIDE BUSINESS IN 1986 CYANAMID'S SALES OF AGRICULTURAL PRODUCTS IN 1992 WERE ABOUT 13 BILLION WITH THE PROPOSED ACQUISITION CYANAMID WOULD BECOME ONE OF THE SIX LARGEST PESTICIDE FIRMS IN THE WORLD UNDER THE PROPOSAL SHELL'S CROP PROTECTION RESEARCH ACTIVITIES IN THE UNITED KINGDOM AND IN THE NETHERLANDS WOULD NOT BE INCLUDED IN THE SALE AND RESEARCH AT THOSE SITES WOULD CEASE ALSO A NETHERLANDS PLANT WOULD NOT BE INCLUDED IN THE SALE AND PESTICIDE MANUFACTURING THERE WOULD BE PHASED OUT STANDARD & POOR'S CORP LATE YESTERDAY REACTED TO CYANAMID'S PLANS BY PUTTING THE COMPANY'S SINGLEAPLUSRATED SENIOR UNSECURED DEBT ON CREDITWATCH WITH NEGATIVE IMPLICATIONS THE INCREASED FINANCIAL RISK RESULTING FROM BORROWINGS FOR THE SHELL PURCHASE AND A RECENT ACQUISITION OF IMMUNEX INC WILL LIKELY LEAD TO A DOWNGRADE OF CYANAMID'S RATING TO SINGLEA S&P SAID 9306170113 930617 INTERNATIONAL EC COURT INVALIDATES FINANCIAL DISCLOSURE RULE FOR STATE FIRMS BRUSSELS UPHOLDING A CHALLENGE BY FRANCE THE EUROPEAN COMMUNITY'S LUXEMBOURGBASED COURT OF JUSTICE INVALIDATED AN EC COMMISSION DIRECTIVE DESIGNED TO DETECT ILLEGAL STATE AID BY REQUIRING LARGE STATEOWNED MANUFACTURERS TO SUBMIT ANNUAL REPORTS SUCH COMPANIES WITH ANNUAL SALES OF MORE THAN 250 MILLION EUROPEAN CURRENCY UNITS 297 MILLION WERE REQUIRED TO DISCLOSE LOANS GRANTS GUARANTEES AND OTHER FINANCIAL ARRANGEMENTS THE COURT UPHELD FRANCE'S ARGUMENT THAT THE RULE WAS IMPROPERLY IMPOSED THE COMMISSION THE EC'S EXECUTIVE AGENCY SOUGHT TO PLAY DOWN THE DECISION'S IMPACT THE REASONS FOR A SYSTEM OF NOTIFICATION REMAIN VALID IT SAID SO IT PLANS TO MODIFY THE EC'S 1980 LAW ON FINANCIAL INFORMATION TO OBTAIN THE DATA IT SEEKS THE COURT CHALLENGE WAS FILED BY FRANCE'S FORMER SOCIALIST GOVERNMENT WHICH WAS OUSTED BY CONSERVATIVES IN ELECTIONS IN MARCH THE SOCIALIST GOVERNMENT OFTEN CLASHED WITH THE COMMISSION OVER ITS INTERPRETATION OF STATEAID RULES INCLUDING A DECISION TO REQUIRE REPAYMENT OF ABOUT 1 BILLION IN AID PARIS HAD MADE TO STATEOWNED CAR MAKER RENAULT SA 9306170112 930617 FINANCING BUSINESS ROYAL OAK MINES INC ROYAL OAK MINES INC SAID IT EXPECTS TO RAISE 42 MILLION CANADIAN DOLLARS US328 MILLION FROM THE SALE OF SIX MILLION EQUITY UNITS AT C7 EACH THE UNITS WILL BE PURCHASED BY FIRST MARATHON SECURITIES LTD AND SCOTIAMCLEOD INC BOTH OF TORONTO SUBJECT TO REGULATORY APPROVAL EACH UNIT WILL CONSIST OF ONE COMMON SHARE AND ONEHALF OF A WARRANT TO PURCHASE AN ADDITIONAL SHARE ROYAL OAK A MINING CONCERN IN VANCOUVER BRITISH COLUMBIA SAID THE PROCEEDS WILL BE USED FOR WORKING CAPITAL PURPOSES 9306170111 930617 WHO'S NEWS QVC NETWORK INC QVC NETWORK INC WEST CHESTER PA DALE MOSS 45 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OF TELEVISION SALES AT THIS HOME SHOPPING CHANNEL MR MOSS HAD BEEN VICE PRESIDENT OF SALES AND CLIENT SERVICES FOR ROSENBLUTH TRAVEL A MAJOR TRAVEL AGENCY IN PHILADELPHIA 9306170110 930617 TEXAS INSTRUMENTS DEFENSE ORDER DALLAS TEXAS INSTRUMENTS INC SAID ITS DEFENSE SYSTEMS & ELECTRONICS GROUP RECEIVED A 463 MILLION CONTRACT TO PRODUCE 650 ELECTROOPTIC THERMAL SIGHTS FOR ASELSAN MILITARY ELECTRONICS INDUSTRIES A DEFENSE AND ELECTRONICS COMPANY IN ANKARA TURKEY TI SAID IT WILL COPRODUCE THE THERMAL SIGHTS WITH ASELSAN OVER 4 1/2 YEARS THE SIGHTS WILL BE USED ON THE TURKISH LAND FORCES' ARMORED INFANTRY FIGHTING VEHICLES 9306170109 930617 WHO'S NEWS ATRIX LABORATORIES INC ATRIX LABORATORIES INC FORT COLLINS COLO JOHN E URHEIM 53 YEARS OLD WAS NAMED VICE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THIS DRUG DELIVERY COMPANY HE SUCCEEDS LAWRENCE L FREDERICK 53 WHO LEFT THE COMPANY IN 1992 AS VICE CHAIRMAN THE CEO POST IS A NEWLY CREATED POSITION MOST RECENTLY MR URHEIM HEADED URHEIM CONSULTING 9306170108 930617 WESTWOOD ONE COMPLETES SALE LOS ANGELES WESTWOOD ONE INC SAID IT COMPLETED THE SALE OF ITS LOS ANGELES RADIO STATION KQLZFM TO A UNIT OF VIACOM INC FOR 40 MILLION PLUS WORKING CAPITAL THE RADIO STATION OPERATOR SAID PROCEEDS OF THE SALE WERE USED TO REDUCE DEBT IT ALSO SAID IT EXPECTS TO COMPLETE THE SALE OF WYNYFM IN NEW YORK TO BROADCASTING PARTNERS INC FOR 50 MILLION BY THE END OF THIS MONTH 9306170107 930617 POLITICS & POLICY GOULD EXPECTED TO BE NAMED HEAD OF NLRB STANFORD PROFESSOR SUPPORTS EMPLOYEE COMMITTEES EASED ORGANIZING RULES BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WHITE HOUSE OFFICIALS HAVE RECOMMENDED THAT PRESIDENT CLINTON NAME WILLIAM GOULD IV AN ADVOCATE OF WORKERMANAGEMENT TEAMS AND OF MAKING IT EASIER FOR UNIONS TO ORGANIZE TO HEAD THE NATIONAL LABOR RELATIONS BOARD A STANFORD UNIVERSITY LAW PROFESSOR MR GOULD WOULD BE THE FIRST BLACK TO SERVE AS NLRB CHAIRMAN PRESIDENT CLINTON IS EXPECTED TO APPROVE HIS NOMINATION MR GOULD COULDN'T BE REACHED FOR COMMENT MR GOULD 56 YEARS OLD CONTENDS THAT THE LABOR LAWS ARE IN COMPLETE DISARRAY AND SHOULD BE OVERHAULED TO ADAPT THEM TO MODERN WORKPLACES HE ALSO BACKS LEGISLATION BANNING THE PERMANENT REPLACEMENT OF STRIKING WORKERS AS LONG AS AN AMENDMENT IS ADDED THAT WOULD FORCE UNIONS TO AGREE TO ARBITRATION THE AUTHOR OF A SOONTOBEPUBLISHED BOOK ON LABOR LAW CALLED AGENDA FOR REFORM MR GOULD ARGUES THAT STATES OR THE FEDERAL GOVERNMENT MUST ADOPT A WRONGFUL DISCHARGE LAW SO THAT WORKERS ARE PROTECTED AND HE SAID UNIONS MUST BE REBUILT FROM SCRATCH NOT UNLIKE THEIR BIRTH DURING THE GREAT DEPRESSION TO BECOME LESS WOBBLY AND OBSOLESCENT THREE OF THE FIVE NLRB BOARD SEATS ARE AVAILABLE FOR THE WHITE HOUSE TO FILL TWO ARE VACANT AND THE THIRD SEAT IS BEING TEMPORARILY HELD BY JOHN RAUDABAUGH CHAIRMAN JAMES STEPHENS A REPUBLICAN IS EXPECTED TO BE DEMOTED TO A BOARD MEMBER THE POSITION OF GENERAL COUNSEL WHICH IS CONSIDERED BY MANY TO BE THE AGENCY'S MOST CRUCIAL JOB WILL BE VACANT THIS FALL WHEN BUSH APPOINTEE JERRY HUNTER DEPARTS THE GENERAL COUNSEL DECIDES WHETHER TO BRING CASES BEFORE THE BOARD WHITE HOUSE OFFICIALS HAVE BEEN CIRCULATING MR GOULD'S NAME AROUND CAPITOL HILL ALSO SAID TO BE UNDER CONSIDERATION FOR BOARD SEATS ARE KATHY KRIEGER CARPENTERS UNION GENERAL COUNSEL E MARGARET BROWNING A PHILADELPHIA UNION LAWYER AND BERNARD DELURY DIRECTOR OF THE FEDERAL MEDIATION AND CONCILIATION SERVICE CURRENTLY MR GOULD IS A MEMBER OF A LABORLAW REFORM COMMISSION SET UP BY THE LABOR AND COMMERCE DEPARTMENTS TO RECOMMEND CHANGES TO THE LEGAL STRUCTURE GOVERNING WORKERS' RIGHTS A GRADUATE OF CORNELL LAW SCHOOL HE HAS BEEN AT STANFORD FOR MORE THAN TWO DECADES BUSINESS GROUPS ARE WORRIED ABOUT SOME ASPECTS OF MR GOULD'S WRITINGS WE CANNOT RECALL ANY OTHER MEMBER OF THE NLRB IN RECENT MEMORY WHO PROPOSED SUCH SWEEPING CHANGES IN THE LAW PRIOR TO HIS OR HER CONFIRMATION SAID JEFFREY MCGUINESS PRESIDENT OF THE LABOR POLICY ASSOCIATION WHICH REPRESENTS CORPORATE HUMANRESOURCES OFFICIALS BUT MR GOULD'S STANCE ON WORKERMANAGEMENT TEAMS SHOULD PLEASE THE CORPORATE COMMUNITY HE CONTENDS EMPLOYEE PARTICIPATION IS CRUCIAL TO US COMPANIES' ABILITY TO COMPETE AN AGENDA FOR LABORLAW REFORM SHOULD INCLUDE ALLOWING DISCUSSION WITH EMPLOYEE COMMITTEES OVER A WIDE VARIETY OF SUBJECT MATTER AND FINANCIAL ASSISTANCE TO SUCH ORGANIZATIONS UNLESS AN INFERENCE OF ANTIUNION INTENT CAN BE EVIDENCED HE SAID IN HIS BOOK EVEN IF EMPLOYEE COMMITTEES ARE FOSTERED BY THE EMPLOYER THE COMMITTEES SHOULD BE ALLOWED SO LONG AS THE REPRESENTATIVES ARE CHOSEN BY EMPLOYEES AND THEIR DAYTODAY ADMINISTRATION IS NOT INHIBITED BY EMPLOYER INVOLVEMENT HE SAID STILL MR GOULD BELIEVES SUCH COMMITTEES SHOULDN'T BE ALLOWED TO NEGOTIATE WITH EMPLOYERS OVER WAGES HOURS OR WORKING CONDITIONS UNLESS THE UNION AGREES AN ARGUMENT THAT PUTS HIM IN LINE WITH THE NLRB'S DECISION TWO WEEKS AGO IN WHICH THE BOARD ORDERED DUPONT CO TO DISBAND WORKERMANAGEMENT TEAMS THE TRADEOFF FOR FREER TEAMS MR GOULD ARGUES IS THAT LAWS SHOULD BE CHANGED TO MAKE IT EASIER TO ORGANIZE WORKERS AN ARGUMENT SURE TO PLEASE UNIONS FOR EXAMPLE HE CONTENDS UNIONS SHOULD HAVE MORE ACCESS TO COMPANY PROPERTY IN CASES WHERE THEY REPRESENT A MAJORITY OF THE WORKERS HE ALSO ARGUES FOR TWO EVEN MORE RADICAL CHANGES IN HOW UNIONS CAN STEP INTO THE WORKPLACE IN ONE CASE HE BACKS COLLECTIVE BARGAINING FOR WORKERS' GROUPS WHERE 20 TO 30 OF THE WORKERS WANT UNION REPRESENTATION INSTEAD OF THE 50 THAT MUST NOW BE GAINED IN AN ELECTION IN ADDITION HE SAID THAT THE ELECTION ITSELF SHOULD BE ELIMINATED AND REPLACED WITH A LAW THAT WOULD ALLOW A UNIONIZED WORKPLACE IF MORE THAN 60 OF THE WORKERS SIGN CARDS BACKING THE UNION CURRENTLY THAT IS A TWOSTEP PROCESS AT LEAST 30 OF THE WORKERS MUST SIGN CARDS TO BRING THE MORE FORMAL VOTE AT WHICH HALF THE WORKERS MUST SUPPORT THE UNION UNIONS ARGUE THAT THE TWOSTEP PROCESS IS TOO ONEROUS 9306170106 930617 INTERNATIONAL BRIEF GRANADA GROUP PLC PRETAX PROFIT INCREASES 72 AT BRITISH LEISURE CONCERN GRANADA GROUP PLC SAID THAT ITS PRETAX PROFIT ROSE 72 IN THE 26 WEEKS ENDED MARCH 27 ALEX BERNSTEIN CHAIRMAN OF THE BRITISH LEISURE CONGLOMERATE SAID THE INCREASE WAS ACHIEVED WITHOUT ANY APPARENT IMPROVEMENT IN CONSUMER SPENDING WHETHER OR NOT THE ECONOMIC CLIMATE DOES IMPROVE ALL OF OUR BUSINESSES ARE IN EXCELLENT SHAPE HE SAID PRETAX PROFIT ROSE TO 681 MILLION 1032 MILLION FROM 397 MILLION SALES WERE GENERALLY FLAT AT 6402 MILLION COMPARED WITH 6364 MILLION IN THE YEAREARLIER PERIOD GRANADA SAID ITS YEAREARLIER RESULTS HAVE BEEN RESTATED TO COMPLY WITH NEW ACCOUNTING RULES REGARDING THE TREATMENT OF GAINS AND LOSSES ON THE SALE OF BUSINESSES 9306170105 930617 MARKETING BRIEF ACTV INC WASHINGTON POST CAN BUY 51 OF INTERACTIVE TV FIRM ACTV INC SAID WASHINGTON POST CO AFTER MEETING THE TERMS OF AN AMENDED MARCH 1992 AGREEMENT HAS RECEIVED THE RIGHT TO ACQUIRE 51 OF THE NEW YORK INTERACTIVE TELEVISION COMPANY IN EXCHANGE FOR WASHINGTON POST'S HELPING ACTV DEVELOP ENTERTAINMENT APPLICATIONS FOR ITS INTERACTIVE TECHNOLOGY ACTV WAIVED THE REQUIREMENT THAT WASHINGTON POST INVEST 2 MILLION IN A YETTOBEFORMED INTERACTIVE CABLE NETWORK ACTV SAID THE AMENDED AGREEMENT GIVES WASHINGTON POST THE RIGHT TO PURCHASE 51 OF ACTV SHARES AT A PRICE TO BE DETERMINED FOR A TWOYEAR PERIOD BEGINNING MARCH 17 1995 WASHINGTON POST PREVIOUSLY ACQUIRED A 15 STAKE IN ACTV AND AGREED TO CERTAIN RESTRICTIONS UNTIL 1995 9306170104 930617 WHO'S NEWS RANK ORGANISATION PLC RANK ORGANISATION PLC LONDON JAMES A HARMON 57 YEARS OLD WAS NAMED A DIRECTOR AT THE INTERNATIONAL LEISURE AND ENTERTAINMENT CONCERN THE NAMING OF MR HARMON WHO'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NEW YORK INVESTMENT BANKING FIRM WERTHEIM SCHRODER & CO INCREASES THE BOARD'S SIZE TO 15 MEMBERS 9306170103 930617 BUSINESS BRIEF MICRON TECHNOLOGY INC FISCAL THIRDQUARTER NET 093 GREW 17FOLD FROM 1992 DRIVING DOWN THE PRODUCTION COSTS OF ITS SEMICONDUCTORS MICRON TECHNOLOGY INC BOISE IDAHO SAID THAT ITS NET INCOME IN THE FISCAL THIRD QUARTER JUMPED 17FOLD FOR THE PERIOD ENDED JUNE 3 NET INCOME WAS 295 MILLION OR 73 CENTS A SHARE UP FROM 17 MILLION OR FOUR CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED TO 2149 MILLION UP 64 FROM 1311 MILLION A YEAR EARLIER THE PARENT COMPANY OF THE CHIPMAKING MICRON SEMICONDUCTOR INC SAID THAT IMPROVED PRODUCTION YIELDS FUELED SALES BUT WARNED THAT STRONG MARKET CONDITIONS ENCOURAGE OVERPRODUCTION WHICH COULD DEPRESS PRICES FOR THE NINEMONTH PERIOD NET INCOME GREW 10FOLD TO 412 MILLION OR 103 A SHARE UP FROM 37 MILLION OR 10 CENTS A SHARE REVENUE GREW 40 TO 5223 MILLION FROM 3711 MILLION 9306170102 930616 MARKETING & MEDIA REPORTS OF SYRINGES FOUND IN PEPSI APPEAR UNRELATED ROCKVILLE MD FEDERAL REGULATORS SAID THEY CAN'T FIND ANY CONNECTION BETWEEN REPORTS IN VARIOUS CITIES OF SYRINGES BEING FOUND IN DIET PEPSI CANS AND BOTTLES SAYING THE REPORTS APPEAR TO BE UNRELATED THE FOOD AND DRUG ADMINISTRATION NONETHELESS CONTINUED TO ADVISE CONSUMERS TO EMPTY DIET PEPSI INTO A GLASS BEFORE DRINKING IT AS A PRECAUTION THE AGENCY HAS BEEN INVESTIGATING SPORADIC REPORTS OF SYRINGES BEING FOUND IN DIET PEPSI CANS SINCE TWO FAMILIES IN THE SEATTLETACOMA AREA MADE SUCH A COMPLAINT LAST WEEK THE FDA YESTERDAY SAID THAT THE NEEDLES AND SYRINGES INVOLVED IN THOSE INITIAL CASES WEREN'T FOUND TO BE CONTAMINATED IN ANY WAY REGULATORS AND LAWENFORCEMENT OFFICIALS SAY THEY ARE CONCERNED THAT SOME OF THE SUBSEQUENT TAMPERING CLAIMS ARE HOAXES POLICE IN VAN NUYS CALIF YESTERDAY SAID THEY DIDN'T BELIEVE A WOMAN'S CLAIM OF A SYRINGE IN HER DIET COKE CAN LATE YESTERDAY AN FDA SPOKESMAN SAID A PERSON HAD BEEN ARRESTED IN PENNSYLVANIA ON FEDERAL CHARGES OF MAKING A FALSE REPORT OF FINDING A SYRINGE IN A PEPSI CAN PEPSICO INC THE FOOD AND BEVERAGE COMPANY BASED IN PURCHASE NY SAID IT IS COOPERATING WITH THE FDA IN INVESTIGATING THE INCIDENTS 9306170101 930617 BUSINESS BRIEF DAUPHIN DEPOSIT CORP COMPANY AGREES TO ACQUIRE VALLEY BANCORP PENNSYLVANIA DAUPHIN DEPOSIT CORP SAID IT AGREED TO ACQUIRE VALLEY BANCORP INC IN A STOCK SWAP THAT VALUES VALLEY BANCORP AT 5029 TO 5685 A SHARE THAT'S A HEFTY PREMIUM TO VALLEY BANCORP'S CURRENT MARKET PRICE AND ITS SHARES ARE LIKELY TO SOAR TODAY THE CHAMBERSBURG PA COMPANY HAD AN INDICATED PRICE YESTERDAY BEFORE A TRADING HALT OF 37 A SHARE DAUPHIN SHARES FELL 1 TO 2350 IN OVERTHECOUNTER TRADING DAUPHIN PUT THE TOTAL VALUATION OF THE DEAL AT ABOUT 688 MILLION UNDER THE DEFINITIVE AGREEMENT EACH SHARE OF VALLEY BANCORP WOULD BE EXCHANGED FOR BETWEEN 21401 AND 24193 SHARES OF DAUPHIN THE EXCHANGE RATIO WOULD DEPEND ON THE MARKET VALUE OF DAUPHIN PRIOR TO THE EFFECTIVE DATE OF THE MERGER WHICH IS EXPECTED BY THE END OF THE YEAR DAUPHIN WHICH LAST YEAR ACQUIRED ANOTHER LOCAL BANK COMPANY FB&T CO CURRENTLY HAS ASSETS OF ABOUT 45 BILLION THE VALLEY BANCORP ACQUISITION WOULD ADD 326 MILLION IN ASSETS VALLEY HAS 14 BRANCH OFFICES DAUPHIN HARRISBURG PA HAS 102 BRANCHES IN PENNSYLVANIA AND MARYLAND 9306170100 930617 BATTLE MOUNTAIN GOLD EXPECTS TO POST LOSS FOR SECOND QUARTER NEW YORK RECENT GOLD PRICE INCREASES DIDN'T HELP SECONDQUARTER EARNINGS AT BATTLE MOUNTAIN GOLD CO CHIEF FINANCIAL OFFICER DENNY O'CONNELL SAID THE COMPANY EXPECTS TO REPORT A LOSS OF TWO CENTS TO FOUR CENTS A SHARE FOR THE QUARTER COMPARED WITH A LOSS OF THREE CENTS A SHARE A YEAR AGO FOR THE FIRST SIX MONTHS THE COMPANY EXPECTS TO SHOW A LOSS OF FIVE CENTS TO SEVEN CENTS A SHARE COMPARED WITH A LOSS OF FIVE CENTS A SHARE IN THE YEARAGO PERIOD HE SAID HIGHER GOLD PRICES WILL CONTRIBUTE TO EARNINGS IN THE THIRD QUARTER SAID O'CONNELL THE COMPANY PRICES ITS GOLD 45 DAYS AHEAD OF THE SPOT MARKET HE SAID THE HOUSTONBASED COMPANY EXPECTS TO BOOST GOLD PRODUCTION BY AT LEAST 50 OVER THE NEXT THREE YEARS TO ABOUT 660000 OUNCES SAID CHAIRMAN KARL ELERS THE INCREASES WILL RESULT FROM A NEW 51OWNED MINE IN WASHINGTON TWO NEW PROJECTS AT THE BATTLE MOUNTAIN COMPLEX IN NEVADA EXPANSION AT RED DOME IN AUSTRALIA AND A POSSIBLE EXPANSION OF A BOLIVIAN MINE TO FINANCE ITS CAPITAL EXPENDITURES WHICH WILL BE ABOUT 39 MILLION IN 1993 AND 99 MILLION IN 1994 THE COMPANY PLACED 115 MILLION IN CONVERTIBLE PREFERRED SHARES SOME PROCEEDS WERE USED TO REPAY REVOLVING DEBT OF ABOUT 43 MILLION MINE OPERATING COSTS SHOULD SETTLE AT ABOUT 200 AN OUNCE BY YEAR'S END AFTER RISING SLIGHTLY DUE TO LOWER PRODUCTION AT THE BATTLE MOUNTAIN COMPLEX AND AT PAJINGO IN AUSTRALIA WHICH IS BEING DEPLETED LOWER ORE GRADE AT SAN CRISTOBAL IN CHILE ALSO IS ADDING TO COSTS OFFSETTING THE INCREASES IS HIGHERTHANEXPECTED PRODUCTION AT THE COMPANY'S 85OWNED BOLIVIAN MINE ELERS SAID HE IS OPTIMISTIC BATTLE MOUNTAIN AND ITS PARTNER CROWN RESOURCES CORP WILL GET PERMITS TO BUILD THE CROWN JEWEL PROJECT IN WASHINGTON IN 1994 THE COMPANY SAID IT EXPECTS TO ADD ABOUT 800000 OUNCES TO ITS PROVED AND PROBABLE RESERVE BASE BY MIDYEAR IT HAS RESERVES OF ABOUT 75 MILLION OUNCES 9306170099 930617 MESA INC SETS ACCORD TO DEFER PAYMENT OF INTEREST ON NOTES AS PART OF SWAP BY CALEB SOLOMON STAFF REPORTER OF THE WALL STREET JOURNAL MESA INC SAID IT REACHED A DEFINITIVE AGREEMENT TO DEFER 150 MILLION OF INTEREST PAYMENTS FOR MORE THAN TWO YEARS AS PART OF AN EXCHANGE OFFER WITH NOTE HOLDERS THAT COULD GIVE THE COMPANY BREATHING ROOM TO WAIT FOR NATURAL GAS PRICES TO RISE THE DALLAS COMPANY ALSO SAID IT REACHED A PRELIMINARY AGREEMENT TO STRETCH OUT 1106 MILLION OF PRINCIPAL PAYMENTS IT OWES TO BANKS THAT WAS DUE IN A LUMP SUM IN JUNE 1994 MESA HAS BEEN WORKING ON THE DEBT EXCHANGE OFFER SINCE OCTOBER AND RECENTLY SKIPPED AN INTEREST PAYMENT OF 293 MILLION DUE MAY 1 THE COMPANY HAS BEEN REELING EVER SINCE NATURAL GAS PRICES CRASHED IN 1986 MESA CHAIRMAN BOONE PICKENS ROLLED THE DICE THAT THE CRASH WOULD BE SHORTLIVED AND HE INCREASED THE COMPANY'S DEBT IN AGGRESSIVE PURCHASES OF MORE GAS RESERVES THE BIGGEST WAS A 700 MILLION PURCHASE FROM TENNECO INC IN 1988 IN OKLAHOMA'S HUGOTON FIELD THE HEART OF MESA'S RESERVES MR PICKENS FREQUENTLY PREDICTED THAT GAS PRICES WOULD CLIMB TO 3 A THOUSAND CUBIC FEET AND BEYOND BUT THEY HAVEN'T YET IN RECENT YEARS PRICES HAVE AVERAGED BELOW 2 ALTHOUGH THEY HAVE STRENGTHENED THIS YEAR AND PEAKED AT AROUND 275 SINCE THEN PRICES HAVE FALLEN BACK TO AROUND 2 AND HAVEN'T BEEN HIGH ENOUGH FOR MESA TO RECOVER IN THE FIRST QUARTER THE COMPANY HAD A NET LOSS OF 171 MILLION OR 44 CENTS A SHARE ON REVENUE OF 638 MILLION BETWEEN 1986 AND 1990 MESA ALSO PAID SHAREHOLDERS AND PARTNERS ABOUT 11 BILLION IN INCOME DISTRIBUTIONS AND BOOSTED DEBT OR SOLD RESERVES WHEN PROFITS COULDN'T COVER THE PAYOUTS IN DALLAS A MESA SPOKESMAN SAID THE COMPANY IS CONTINUING EFFORTS TO CUT DEBT AND RESTRUCTURE THIS BOND EXCHANGE OFFER IS A CRITICAL ELEMENT HE SAID MESA SHARES CLOSED YESTERDAY AT 6125 UP 25 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE AGREEMENT WITH HOLDERS OF 600 MILLION OF SUBORDINATED NOTES ALLOWS MESA TO DEFER INTEREST PAYMENTS UNTIL DECEMBER 1995 WHEN THE FIRST PAYMENT OF 48 MILLION IS DUE UNDER THE TERMS SIMILAR TO A PRELIMINARY AGREEMENT REACHED IN LATE APRIL THE NOTE HOLDERS WOULD AGREE TO EXCHANGE THEIR NOTES PLUS THE 293 MILLION INTEREST PAYMENT FOR A PACKAGE OF NEW SECURITIES THE PACKAGE CONSISTS OF 4357 MILLION OF 1275 SECURED NOTES DUE JUNE 30 1998 150 MILLION OF 1275 UNSECURED NOTES DUE JUNE 30 1996 30 MILLION OF CONVERTIBLE NOTES AND 135 MILLION IN CASH MESA HOPES TO COMPLETE THE EXCHANGE BY MIDAUGUST THE OFFER IS CONTINGENT ON THE EXCHANGE OF 75 OF THE NOTES MESA'S AGREEMENT IS WITH REPRESENTATIVES OF 70 OF THE NOTES THE PRELIMINARY AGREEMENT WITH BANK LENDERS CALLS FOR A 206 MILLION PAYMENT WHEN THE DEBT EXCHANGE OFFER IS COMPLETED PAYMENTS OF 10 MILLION WOULD BE DUE ON DEC 31 AND MARCH 31 1994 ON JUNE 30 1994 MESA WOULD PAY 20 MILLION AND THE FINAL 50 MILLION ON JUNE 30 1995 9306170098 930617 BUSINESS BRIEF MONARCH LIFE INSURANCE CO COMPANY FILES COMPLAINT AGAINST ERNST & YOUNG MONARCH LIFE INSURANCE CO SAID IT ADDED A COMPLAINT AGAINST THE ACCOUNTING FIRM ERNST & YOUNG TO ITS 250 MILLION PROFESSIONAL MALPRACTICE LAWSUIT AGAINST THE BOSTON LAW FIRM ROPES & GRAY MONARCH LIFE SPRINGFIELD MASS SAID THE COMPLAINT ALLEGES THAT ERNST & YOUNG ACTED AS BOTH THE AUDITORS FOR IT AND ITS FORMER PARENT CORPORATION MONARCH CAPITAL CORP THE ACCOUNTING FIRM KNEW OR SHOULD HAVE KNOWN THAT MONARCH CAPITAL HAD WRONGFULLY DIVERTED MILLIONS OF DOLLARS OF MONARCH LIFE'S ASSETS TO FUND MONARCH CAPITAL'S REAL ESTATE VENTURES AND THAT THOSE AMOUNTS WERE NOT RECOVERABLE MONARCH LIFE SAID MORT MEYERSON A SPOKESMAN FOR ERNST & YOUNG SAID THE SUIT HAS NO MERIT AND HIS FIRM EXPECTS MONARCH LIFE'S COMPLAINT AGAINST IT TO BE DISMISSED HE SAID ALL CASH TRANSFERS BY MONARCH LIFE TO MONARCH AFFILIATES WERE MADE IN ACCORDANCE WITH MONARCH LIFE'S STANDARD PRACTICES IN MAY MONARCH LIFE SUED ROPES & GRAY IN MASSACHUSETTS SUPERIOR COURT ALLEGING MALPRACTICE AND BREACH OF FIDUCIARY DUTY THE LAW FIRM WHICH REPRESENTED MONARCH LIFE AND ITS CORPORATE PARENT HAS DENIED THE ALLEGATIONS 9306170097 930617 BUSINESS BRIEF NOEL GROUP INC INVESTMENT COMPANY OFFERS 59 MILLION TO BUY BELDING NOEL GROUP INC NEW YORK WHICH PURSUED BELDING HEMINWAY CO FOR SIX MONTHS REACHED AN AGREEMENT ON A 59 MILLION TENDER OFFER FOR THE THREAD FABRICS AND CONSUMER PRODUCTS COMPANY THE INVESTMENT GROUP PLANS TO OFFER 3025 A SHARE TO BUY BELDING'S 1950000 SHARES OUTSTANDING STARTING NEXT WEDNESDAY HOUSMAN FAMILY MEMBERS WHO HAVE CONTROLLED THE COMPANY FOR A NUMBER OF YEARS AGREED TO TENDER ABOUT 20 OF THE COMPANY'S SHARES IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE BELDING WAS QUOTED AT 30 A SHARE UP 150 THE OFFER IS SUBJECT TO CONDITIONS INCLUDING THE TENDER OF A MAJORITY OF BELDING SHARES NOEL SAID A FINANCING COMMITMENT WITH WORKING CAPITAL WILL BE SUFFICIENT TO PAY FOR THE OFFER BELDING HEMINWAY WHICH HAD REVENUE OF ABOUT 1416 MILLION IN 1992 PRODUCES HIGHTECHNOLOGY THREADS AND SPECIALTY FABRICS AND MARKETS CONSUMER PRODUCTS THE COMPANY HAS INTERESTS IN REAL ESTATE AND CELLULAR TELEPHONE LICENSES 9306170096 930617 BUSINESS BRIEF GRAND UNION HOLDINGS CORP LOSS GREW TO 2227 MILLION IN THE FISCAL FOURTH QUARTER GRAND UNION HOLDINGS CORP WAYNE NJ REPORTED A MUCH WIDER DEFICIT FOR THE FISCAL FOURTH QUARTER MAINLY DUE TO THE LOSS ON THE SALE OF STORES IN GEORGIA HIGH DEPRECIATION AND AMORTIZATION EXPENSES AND A CHARGE FOR EARLY PAYMENT OF DEBT THE HOLDING COMPANY PARENT OF THE CLOSELY HELD RETAIL FOOD CHAIN GRAND UNION CO SAID THE NET LOSS FOR THE QUARTER ENDED APRIL 3 WAS 2227 MILLION COMPARED WITH A LOSS OF 117 MILLION A YEAR EARLIER REVENUE FELL 82 TO 6042 MILLION FROM 6585 MILLION THE 1993 QUARTER DOESN'T INCLUDE RESULTS OF 51 STORES IN THE SOUTHERN REGION WHICH WERE SOLD ADDITIONALLY THE 1993 QUARTER COMPRISED 13 WEEKS COMPARED WITH 12 WEEKS A YEAR EARLIER THE 51 STORES WERE SOLD AT A LOSS OF 198 MILLION DURING THE QUARTER GRAND UNION ALSO REPORTED DEPRECIATION AND AMORTIZATION EXPENSES OF 183 MILLION AND A CHARGE FOR EARLY PAYMENT OF DEBT OF 72 MILLION 9306170095 930617 UNLIKE THE REST OF US THESE GIRLS WANT TO LOOK LONG IN THE TOOTH BY JARED SANDBERG STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THANK HEAVEN FOR LITTLE VAMPIRE GIRLS ABOUT 200 OF THEM SHOWED UP RECENTLY AT A WARNER BROS CASTING CALL FOR THE ROLE OF CLAUDIA IN THE MOVIE INTERVIEW WITH THE VAMPIRE BASED ON ANN RICE'S BESTSELLER CLAUDIA IS AN ORPHAN TURNED VAMPIRE AND POWER SHOPPER VAMPIRES DON'T AGE A WONDERFUL THING IF YOU'VE GONE THROUGH PUBERTY BUT IT LEAVES CLAUDIA ONLY FIVE IN A PERPETUAL STATE OF DOLLISHNESS THAT BEGINS TO GNAW ON HER IT WOULD BE PRETTY FUN TO PLAY A VAMPIRE SAYS EIGHTYEAROLD MALLORY KEITH SHE GETS TO SUCK BLOOD OUT OF PEOPLE AND SHE GETS TO BUY NICE CLOTHES FOURFOOTTALL MALLORY BELIEVES SHE WOULD BE GOOD FOR THE ROLE SHE SAYS SHE WORE CURLERS TO BED THE NIGHT BEFORE THE AUDITION TO BETTER FIT THE PART ADDING I HAD TO LIE ON MY FACE REINA DE BEERS 12 CALLS CLAUDIA FABULOUS REINA ELABORATES SHE LURES HER VICTIMS SHE PLAYS WITH THEM USES THEM AND KILLS THEM SHE'S THE PERFECT VILLAIN SOME OF THE WOULDBE CLAUDIAS AREN'T THE USUAL CUTESY KIDS THERE ARE SOME BEAUTIFUL GORGEOUS GIRLS BEING TURNED AWAY SAYS DIANE BALL WHO BROUGHT HER TWO DAUGHTERS TO AUDITION SHE DESCRIBES ONE GIRL WHO WAS ASKED TO READ FOR THE PART THERE WAS NOTHING ATTRACTIVE ABOUT HER HAIR NOTHING ATTRACTIVE ABOUT HER FACE SHE WAS KIND OF WAIFLOOKING PALE LOOKING A SICKLY LOOKING CHILD SHE PAUSES THEN ADDS THAT'S A TERRIBLE THING TO SAY IF MONSTERS ARE WANTED THERE'S NO SHORTAGE MRS BALL'S DAUGHTER KEIRSTEN SEVEN WAS QUICK TO RAISE HER HANDS LIKE CLAWS AND OFFER TO BITE ANYBODY IN THE SAME VEIN 12YEAROLD ASHLEY CARLISLE THINKS BLOOD IS COOL CHUCKLING ASHLEY SAYS SHE OFTEN TRICKS HER PARENTS FAKING INJURIES WITH FALSE BLOOD THE CASTING AD IN LOCAL NEWSPAPERS ASSURED PARENTS THAT THE ROLE DOES NOT REQUIRE NUDITY PROFANITY OR ANY SEXUAL ACTIVITY WHATSOEVER BUT IT ADDED THAT THE GIRL SHOULD BE MATURE SOMETIMES I'M NOT THAT MATURE BECAUSE SOMETIMES I KICK MY BROTHER RICHARD CONFESSES ELIZABETH ALLEN THE EIGHTYEAROLD CAME DRESSED AS A DEAD RINGER FOR CLAUDIA LIKE CLAUDIA SHE CARRIED FLOWERS AND WORE HER BLOND HAIR IN CURLS UNLIKE CLAUDIA I DON'T HAVE A TASTE FOR FAMILIES ELIZABETH SAYS BUT I COULD BITE ONE PERSON LIKE MY BROTHER RICHARD 9306170094 930617 INTERNATIONAL INDIA RAISES CAPITAL BY REACHING OUT TO SELL MUTUAL FUNDS TO RURAL MASSES BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL DHARMSALA INDIA CAPT SM ABROL A 52YEAROLD RETIRED ARMY OFFICER SITS AT HIS DESK IN THE RED CROSS OFFICE HERE FILLING OUT MOBILIZATION ORDERS WHAT HE'S MOBILIZING IS CAPITAL THE BATTLE HE'S HELPING TO WAGE IS TO PERSUADE OTHER INDIANS TO PUT MONEY INTO SOMETHING FEW HAVE EVER HEARD OF MUTUAL FUNDS THIS IS SECURITY FOR MAN SECURITY FOR THE NATION DECLARES MR ABROL PRACTICING A SALES PITCH HE USES ON FORMER ARMY COLLEAGUES HAVING SEEN OTHER ASIAN COUNTRIES MARSHALL RURAL CAPITAL TO BUILD INDUSTRY AND INFRASTRUCTURE INDIA WANTS TO DO THE SAME AS PART OF ITS EFFORT TO REVAMP ITS LONGSTAGNANT ECONOMY OLD HABITS DIE HARD SO THE MASSIVE EFFORT IS RUN BY A POWERFUL ARM OF THE NATIONAL GOVERNMENT UNIT TRUST OF INDIA UTI'S MANDATE ECONOMISTS AND UTI OFFICIALS SAY IS TO EXTRACT THE WIDELY SCATTERED SAVINGS OF INDIA'S 880 MILLION PEOPLE AND GUIDE IT INTO ECONOMICALLY PRODUCTIVE INVESTMENTS MAINLY STOCKS AND GOVERNMENT BONDS A HANDFUL OF OTHER INSTITUTIONS ALSO SELL UNIT TRUSTS AS MUTUAL FUNDS ARE CALLED IN THE NATIONS OF THE BRITISH COMMONWEALTH BUT WITH ITS GOVERNMENT BACKING UTI IS A DOMINANT FORCE THESE PRODUCTS HAVE AN APPEAL RIGHT FROM AN OLD PERSON UP TO CHILDREN SAYS SA DAVE UTI'S CHAIRMAN AND THOUGH HE SAYS THE BACKBONE OF UTI'S BUSINESS IS THE MIDDLE CLASS ECONOMISTS SAY ITS MOST IMPORTANT REACH IS INTO RURAL AREAS THIS IS ONE OF THE MOST IMPORTANT THINGS WE CAN DO FOR OUR GROWTH SAYS LC GUPTA A NEW DELHI ACADEMIC YOU WOULD BE SURPRISED HOW MANY PEASANTS ARE RICH WE SHOULD BE ABLE TO COLLECT A LOT OF MONEY FROM THE RURAL AREAS EVEN THE POOREST INDIAN WILL TRY TO SAVE UTI IS WELL POSITIONED TO TRACK DOWN TINY POCKETS OF SAVINGS IN A COUNTRY WHERE THE AVERAGE PERCAPITA INCOME HOVERS AROUND 300 BY SOME MEASURES UTI IS THE WORLD'S BIGGEST FARTHESTFLUNG MUTUALFUND OPERATOR FOUNDED IN 1963 UTI TODAY HAS 90000 SALES AGENTS AND 28 MILLION ACCOUNT HOLDERS THERE ARE OFFICES IN THE DESERTS OF RAJASTHAN THE JUNGLES OF TAMIL NADU EVEN HERE IN DHARMSALA IN THE HIMALAYAN FOOTHILLS TOTAL ASSETS UNDER MANAGEMENT 11 BILLION THAT MAY PALE BESIDE THE 210 BILLION ACCUMULATED BY BOSTON'S FIDELITY INVESTMENTS WHICH HAS A SALES FORCE OF ABOUT 2000 AND WHILE AMERICANS EVERYWHERE INVEST FEWER THAN 10 OF INDIA'S SHAREHOLDERS COME FROM RURAL AREAS WHERE 80 OF ITS POPULATION LIVES THE FOOT SOLDIERS IN UTI'S CAMPAIGN TO COLLECT INDIA'S SCATTERED SAVINGS ARE PEOPLE SUCH AS MR ABROL MOST OF WHOM GET A COMMISSION OF 1 TO 2 OF EACH INVESTMENT THEY BRING IN MANY ALSO HOLD OTHER JOBS MR ABROL IS SECRETARY OF THE LOCAL RED CROSS SOMETIMES I AM WORKING WITH THE AILS OF THE POOR HE SAYS AS HE CHECKS WITH AN ASSISTANT ABOUT PROVIDING MEDICINE TO AN EMACIATED WOMAN SOMETIMES I AM WORKING WITH THE MONEY OF THE MIDDLE CLASS BUT I NEVER MIX MY WORK THE FORMS HE'S FILLING OUT ON THIS WARM AFTERNOON REGISTER THE INVESTMENTS OF HIS CLIENTS FOR THE GROWING NUMBER OF DIVERSE CULTURALLY TAILORED MUTUAL FUNDS BEING OFFERED TO NEOPHYTE INDIAN INVESTORS ILLITERATE CUSTOMERS CAN SIGN WITH A THUMB PRINT AND IN SOME CASES SUCH AS THE SOMETIMES EMBARRASSING QUESTION OF AN APPLICANT'S AGE NEED PROVIDE NO DOCUMENTARY PROOF YOUR WORD IS GOOD ENOUGH FOR US ONE BROCHURE SAYS AT THE MOMENT MR ABROL IS PUTTING ABOUT 300 OF A CLIENT'S MONEY INTO A NEW UNIQUELY INDIAN UNIT TRUST A DOWRY FUND IT'S COMMON FOR A BRIDE'S PARENTS TO PAY A LARGE DOWRY TO HER HUSBAND OR BUY JEWELRY OR APPLIANCES FOR A NEW COUPLE THE COSTS CAN BE HUGE MY ADVICE TO EVERYBODY IS IF THERE IS A DAUGHTER PUT MONEY IN THIS SCHEME SAYS MR ABROL OTHERWISE EVERYTHING DEPENDS ON THE LUCK OF THE GIRL HE HAS THREE DAUGHTERS ONE OF WHOM JUST GOT MARRIED WITH WHAT HE DESCRIBES AS A VERY FAIR DOWRY INCLUDING A TELEVISION SET VALUED AT ABOUT 5000 HE HAD BUILT UP THE MONEY WITH THE AID OF SIMPLE INTEREST IN A BANK ACCOUNT UTI'S NEW DOWRY FUND BY CONTRAST PROMISES A RETURN OF 21 TIMES AN ORIGINAL INVESTMENT THIS IS AN EXCLUSIVE SCHEME FOR THE BENEFIT OF WOMEN FOR HER WHO BRINGS SO MUCH LOVE AND SUNSHINE IN OUR LIFE FOR HER WHO DESERVES ALL REVERENCE RESPECT AND LOVE FROM EVERY ONE OF US THE PROSPECTUS READS BESIDES IT ADDS YOUR MONEY GROWS AMAZINGLY THE DOWRY TRUST HAS BECOME ONE OF UTI'S BIGGEST SELLERS IN THE SIX MONTHS SINCE IT WAS LAUNCHED ABOUT 700000 INVESTORS HAVE PUT AWAY A TOTAL OF ABOUT 80 MILLION FOR THEIR DAUGHTERS' FUTURES THE US EQUIVALENT OF A DOWRY FUND MIGHT BE A TAXEXEMPT COLLEGE FUND INTO WHICH MONEY INTENDED TO PAY FOR A YOUNGSTER'S EDUCATION CAN BE PLACED A FIDELITY SPOKESWOMAN SAYS THAT'S ONE OF THE COMPANY'S MORE POPULAR PRODUCTS ANOTHER POPULAR PARALLEL FUNDS THAT SPECIALIZE IN TAXFREE GOVERNMENT BONDS RL MAHAJAN A 72YEAROLD RETIRED LIFEINSURANCE AGENT WHO IS ONE OF UTI'S BIGGEST SALESMEN SAYS THE TAXEXEMPT FUND IS THE EASIEST TO SELL THOSE WHO DON'T WANT TO PAY TAX CAN EVADE IT HE ALL BUT SHOUTS SITTING IN HIS AIRY LIVING ROOM HERE WITH HIS BEST FRIEND AND UTI RECRUIT MR ABROL LOOKING ON ADMIRINGLY THERE IS NO WAY TO TAX YOU VERY BIG SELLING POINT WITH SUCH PRODUCTS AND SUCH SALESMEN UTI IS GROWING FAST IN THE REGION WHERE MESSRS ABROL AND MAHAJAN WORK ASSETS UNDER MANAGEMENT HAVE CLIMBED TO ALMOST 7 MILLION FROM ONLY 1 MILLION IN 1989 MR MAHAJAN HIMSELF SELLING UNDER THE NAME OF HIS 65YEAROLD WIFE LALITA TO AVOID FORCED RETIREMENT AT 70 HAS BROUGHT MORE THAN 300000 UNDER MANAGEMENT IN A SINGLE YEAR I DO IT ALL WHEN I SELL HE SAYS AS HIS WIFE LOOKS ON QUIETLY I AM A MAN A WOMAN AND AN OFFICE ALL IN ONE THE AGGRESSIVE TACTICS OF MESSRS ABROL AND MAHAJAN AREN'T AS IMPORTANT TO CLIENTS AS THE RETURNS UTI OFFERS WHICH USUALLY TOP BANK DEPOSIT RATES BY A FEW PERCENTAGE POINTS NN NOWROJEE THE 75YEAROLD PROPRIETOR OF A 133YEAROLD FAMILYRUN GENERAL STORE STARTED INVESTING IN UTI PRODUCTS IN OCTOBER 1989 BECAUSE IT PROMISED A BETTER RETURN THAN HIS BANK OFFERED I'VE GOT 40000 RUPEES ABOUT 1300 IN UTI AND THEY PAY ON TIME HE SAYS BUT I STILL KEEP SOME SAVINGS IN THE BANK IT'S SAFER 9306170092 930617 BUSINESS BRIEFS AMERICAN EXPRESS CO LAUNCHED A TRAVEL CARD BASED ON THE RUPEE FOR USE IN INDIA NEPAL AND BHUTAN INTELCOM SUPPORT SERVICES INC A SUBSIDIARY OF MICHAEL BAKER CORP HAS BEEN AWARDED TWO CONTRACTS VALUED AT AS MUCH AS 28 MILLION TO PERFORM RENOVATION AND MAINTENANCE WORK AT ANDERSON AIR FORCE BASE IN GUAM ACCLAIM ENTERTAINMENT INC OBTAINED EXCLUSIVE RIGHTS TO ALL OF TITANSPORTS INC'S WORLD WRESTLING FEDERATION PROPERTIES FOR ALL INTERACTIVE ENTERTAINMENT MEDIA OWENS & MINOR INC WAS AWARDED THE DEFENSE DEPARTMENT'S MEDICALSURGICAL PRIME VENDOR CONTRACT FOR THE WASHINGTON DC REGION WHIRLPOOL CORP'S EUROPEAN SUBSIDIARY AGREED TO SELL ITS BARCELONA REFRIGERATOR PLANT TO IAR/SILTAL TERMS WEREN'T DISCLOSED CAMPO ELECTRONICS APPLIANCES & COMPUTERS INC SAID IT SIGNED A LETTER OF INTENT TO PURCHASE ALL THE SHARES OUTSTANDING OF PRIVATELY HELD SHREVEPORT REFRIGERATION INC CAMPO WOULDN'T PLACE A VALUE ON THE DEAL COMPANY OFFICIALS EXPECT THE TRANSACTION TO CLOSE BEFORE AUG 31 THE END OF CAMPO'S FISCAL YEAR 9306170091 930617 IN THE LAB CHARDONNAY'S BOUQUET MAY HINT OF FIDO BY CARRIE DOLAN STAFF REPORTER OF THE WALL STREET JOURNAL DAVIS CALIF IN ORDER TO MAKE FINE DINING MORE PLEASURABLE ANN NOBLE HAS SNIFFED DIESEL FUEL AND DOG HAIR DR NOBLE AN ENOLOGY PROFESSOR AT THE UNIVERSITY OF CALIFORNIA'S CAMPUS HERE STUDIES WAYS TO MAKE WINE MORE APPEALING HER SPECIALTY SENSORY EVALUATION OF WINE FLAVOR DR NOBLE'S LAB WORK HAS RESULTED IN AN AROMA WHEEL A CHART THAT CATEGORIZES THE RANGE OF WINE BOUQUETS IT INCLUDES TERMS SUCH AS VANILLA GERANIUM DIESEL AND WET DOG SOME WHITE WINES MAY HAVE THE SAME SULFURCONTAINING MOLECULES THAT COME FROM THE BREAKDOWN OF PROTEIN FOUND IN DOG HAIR SHE SAYS THE TERMS SHE SAYS AREN'T NECESSARILY MEANT TO BE NEGATIVE JUST PRECISE DR NOBLE AIMS TO GIVE WINE MAKERS A BETTER METHOD OF DESCRIBING WHAT TASTE THEY WANT TO CREATE AND MARKETERS AN EASIER WAY OF TELLING CONSUMERS WHAT TO EXPECT CONSUMERS ARE OFTEN CONFUSED OR INTIMIDATED SHE SAYS BY ESOTERIC DESCRIPTIONS OF WINE IT IS DIFFICULT EVEN FOR WINE MAKERS TO KNOW EXACTLY WHAT HIGH TONALITY OR MIDDLEROUNDNESS TASTES LIKE DR NOBLE TRIES TO WEAN PEOPLE AWAY FROM USING WHAT SHE CALLS FRUFFY TERMS SUCH AS ELEGANT OR FEMININE IN FAVOR OF WORDS THAT CAN BE PHYSICALLY DEFINED THE WHEEL HAS BEEN ADAPTED FOR SOME 30 COUNTRIES TO ACCOUNT FOR CULTURAL SNIFFING DIFFERENCES TO THE FRENCH FOR INSTANCE GREEN BEAN IMPLIES A FRESH ABUNDANT FLAVOR DR NOBLE SAYS WHILE AMERICANS TEND TO THINK OF THE DEAD CANNED VERSION CASSIA A POTENT HERB COMMON IN OTHER NATIONS IS UNFAMILIAR TO AMERICAN NOSES IN ONE LABORATORY FIVE CHAIRS ARE PLACED IN FRONT OF MACINTOSH COMPUTERS EACH CUBICLE HAS A TRAY WITH BEAKERS AND A SPITTOON SIGNS REQUEST NO EATING PLEASE BE QUIET PLEASE SPIT WHEN REQUESTED TASTERS USUALLY STUDENTS TEST SAMPLES OF WINES MOVING THE MOUSE TO RECORD INTENSITY POINTS WHICH CHART THE WINE'S SWEETNESS OR ASTRINGENCY IN ANOTHER ROOM A MACHINE THAT SEPARATES VOLATILE COMPOUNDS DECORATED WITH A PICTURE OF A SKUNK STORES INFORMATION ABOUT UNDESIRABLE SMELLS ANOTHER WITH A FLOWER ON IT KEEPS DATA ABOUT PLEASANT SMELLS CURRENTLY DR NOBLE IS STUDYING EVIDENCE THAT FOR SOME GRAPE VARIETIES EXTRA SUNLIGHT ON THE VINES GIVES WINE A MORE FRUITY TASTE WHILE SHADED THICK VINE GROWTH PRODUCES A MORE VEGETAL AROMA SHE IS ALSO STUDYING HOW SALIVA AFFECTS TASTE PERCEPTION AND WHAT COMPONENTS MAY BE USEFUL IN MAKING A GOODTASTING WINE WITHOUT ALCOHOL UCDAVIS HAS THE NATION'S LARGEST VITICULTURE DEPARTMENT ATTRACTING ASPIRING WINE MAKERS FROM AROUND THE WORLD ABOUT 100 STUDENTS ARE ENROLLED IN THE DEPARTMENT A THIRD OF THEM FROM FOREIGN COUNTRIES INCLUDING THE GREAT WINEGROWING REGIONS OF EUROPE SENSORY SCIENCE IS ONE OF THE NEWER AREAS OF STUDY FOR DAVIS IN 1880 THE CALIFORNIA LEGISLATURE GAVE THE STATE'S UNIVERSITY SYSTEM THE DUTY TO PROVIDE SPECIAL INSTRUCTION PERTAINING TO VITICULTURE THE THEORY AND PRACTICE OF FERMENTATION DISTILLATION AND THE MANAGEMENT OF CELLARS TO BE ILLUSTRATED BY PRACTICAL EXPERIMENTS WITH APPROPRIATE APPARATUS SINCE THEN RESEARCHERS HAVE DEVELOPED METHODS FOR PRUNING TRELLISING AND MECHANICAL HARVESTING AS WELL AS ADVANCEMENTS IN THE PRODUCTION OF BRANDY AND DESSERT WINES THROUGH BASIC RESEARCH ON CHEMICAL COMPOUNDS SCIENTISTS HERE DISCOVERED THAT IF WINE MAKERS STOPPED USING CEMENT TANKS IN FAVOR OF TEMPERATURECONTROLLED STAINLESS STEEL ONES THEY COULD PRODUCE MORE FLAVORFUL WHITE WINES SOCALLED COLD FERMENTATION OF WHITE WINES IS NOW STANDARD PRACTICE WORLDWIDE A RECENT OUTBREAK OF PHYLLOXERA A BUG THAT HAS DAMAGED THOUSANDS OF ACRES OF PRIME VINEYARDS IN NEARBY NAPA VALLEY HAS PROMPTED A REVITALIZATION OF THE DEPARTMENT'S WORK ON DEVELOPING PEST AND DISEASERESISTANT ROOTSTOCK OTHER DAVIS RESEARCHERS ARE WORKING WITH THE MEDICAL SCHOOL TO STUDY WAYS TO AMPLIFY ANTIOXIDANTS WHICH PROTECT DNA IN WINE THOUGH THE US WINE INDUSTRY HAS MADE TREMENDOUS GAINS IN RECENT YEARS SAYS DR LINDA BISSON HEAD OF THE DEPARTMENT THERE IS PLENTY OF ROOM FOR GROWTH SOME OF OUR WINES ARE OF HIGHER QUALITY THAN EUROPE'S THOUGH THE US HOLDS ONLY ABOUT 13 OF THE WORLDWIDE MARKET YET FUNDING OF BASIC RESEARCH RELATED TO WINE IS DRYING UP IT IS CLEAR BY ALL CRITERIA THAT THE INVESTMENT IN GRAPE RESEARCH IN CALIFORNIA AND THE US IS MINIMAL DR BISSON SAYS DAVIS'S ANNUAL BUDGET FOR VITICULTURE RESEARCH AND TEACHING IS ABOUT 3 MILLION THE AUSTRALIAN WINE INDUSTRY RAISES CLOSE TO 3 MILLION TO SUPPORT AN INDUSTRY ONEEIGHTH THE SIZE OF CALIFORNIA'S THE FRENCH GOVERNMENT AND EUROPEAN COMMUNITY'S WINE INDUSTRIES ARE INVESTING ABOUT 6 MILLION IN GENETIC ENGINEERING OF GRAPEVINES WHILE GRAPES ARE THE NINTHLARGEST AGRICULTURAL COMMODITY IN THE US DR BISSON SAYS THERE ARE NO FEDERAL FUNDS FOR SUCH DEVELOPMENT DR BISSON SAYS THE GOVERNMENT EXPECTS GROWERS TO FILL IN THE GAP IN BASIC RESEARCH FUNDING BUT THAT GROWERS ARE RELUCTANT BECAUSE IT IS HIGHLY UNLIKELY IT WILL BENEFIT THEM IN THEIR LIFETIME ANDY WALKER A PLANT GENETICIST AT DAVIS ESTIMATES IT TAKES 10 TO 15 YEARS FROM THE INITIAL BREEDING OF A NEW ROOTSTOCK TO ITS COMMERCIAL USE HUMANS SAYS MR SILVER CAN ACTUALLY ONLY DETECT FOUR TASTES SWEET SOUR SALTY AND BITTER ALL OTHER TASTES ARE A RESULT OF SMELL GIVE A PERSON THREE JELLY BEANS OF DIFFERENT COLORS HAVE THEM CLOSE THEIR EYES AND HOLD THEIR NOSE AND TASTE THEM THEY CAN'T TELL YOU WHAT FLAVOR THE CANDIES ARE HE SAYS YOU CAN WIN SO MANY BAR BETS WITH THAT ONE MOST PEOPLE ARE TAUGHT TO NOTICE DIFFERENCES USING THEIR SENSE OF SIGHT BUT NOT THEIR SENSE OF SMELL SAYS DR NOBLE WE ARE TAUGHT 'THIS IS A RED CRAYON CONTRASTED TO A BLUE CRAYON' BUT WE AREN'T TAUGHT THAT THIS SMELL IS DAFFODIL CONTRASTED TO ROSE OR THIS IS CINNAMON COMPARED TO NUTMEG WITH PRACTICE ALMOST ANYONE CAN LEARN TO DISTINGUISH SMELLS SHE SAYS HER STUDENTS ARE GIVEN DIFFERENT THINGS TO SMELL THEN GIVEN WINES WHICH CONTAIN SIMILAR SMELLS SOME PEOPLE ARE TRAINED TO NOTICE MORE AND DESCRIBE MORE DR NOBLE SAYS AND SOME PEOPLE LIKE DR NOBLE JUST SEEM TO BE BORN WITH A MORE ALERT NOSE AS A CHILD MY MOM SAID I COULD ALWAYS SMELL A POT BURNING BEFORE ANYONE ELSE SHE SAYS MAYBE I'M JUST CLOSER TO DOGS SHE JOKES THEIR SENSE OF SMELL IS MORE EVOLVED THAN HUMANS 9306170090 930617 FINANCING BUSINESS ROWAN COS ROWAN COS A HOUSTON PETROLEUM SERVICE COMPANY SAID IT COMPLETED ITS PUBLIC OFFERING OF 10 MILLION COMMON SHARES AT 9625 A SHARE NET PROCEEDS FROM THE SALE MANAGED BY LEHMAN BROTHERS INC WILL BE USED FOR WORKING CAPITAL TO EXPAND TURNKEY DRILLING OPERATIONS AND FOR GENERAL CORPORATE PURPOSES ROWAN HAD ABOUT 74 MILLION COMMON SHARES OUTSTANDING BEFORE THE OFFERING 9306170089 930617 HEARD ON THE STREET ANALYSTS' TERMINOLOGY IS GETTING MORE RISKY AS STRONGHOLD' RATING GROWS IN POPULARITY BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH THE STOCK MARKET AT WHAT MANY SEE AS PERILOUS HEIGHTS INVESTORS SHOULD BE ON THE LOOKOUT FOR DOUBLESPEAK FROM WALL STREET AS MARKET VETERANS ARE FOND OF POINTING OUT ANALYSTS ARE UNCOMFORTABLE MAKING SELL RECOMMENDATIONS ON PARTICULAR STOCKS OFTEN THE ANALYSTS WILL COP OUT WITH A EUPHEMISM THE HOLD RATING BUT NOW HOLD IS GETTING SUCH A BAD NAME THAT DIFFERENT TERMINOLOGY IS GAINING FAVOR ON THE STREET LIKE STRONG HOLD STRONG HOLD MORGAN STANLEY'S KURT FEUERMAN A TOPRATED ANALYST USED THE PHRASE TUESDAY WHEN HE TRIMMED HIS EARNINGS ESTIMATES FOR CRACKER BARREL OLD COUNTRY STORE FOR THE SECOND TIME IN A MONTH AND PULLED HIS BUY RATING THE 26 REDUCTION OF HIS ESTIMATE TOUCHED OFF A 12 PLUNGE IN THE STOCK IN HEAVY NASDAQ OVERTHECOUNTER TRADING TUESDAY YESTERDAY IT FELL MORE MODESTLY JUST WHAT DOES STRONG HOLD MEAN SINCE MOST INVESTORS ASSUME A HOLD IS REALLY A POLITE WAY TO SAY SELL DOES STRONG HOLD ACTUALLY MEAN STRONG SELL THAT'S WHAT A FEW PEOPLE WHO BAILED OUT OF CRACKER BARREL TUESDAY APPARENTLY THOUGHT ASKED FOR HIS OPINION STUART ROBBINS HEAD OF DONALDSON LUFKIN & JENRETTE'S RESEARCH DEPARTMENT RESPONDS I'M NOT SURE WHAT IT MEANS HE SAYS DLJ ELIMINATED EVEN THE WORD HOLD FROM ITS VERNACULAR SOME YEARS AGO BECAUSE OF ITS AMBIGUITY THOUGH IT WILL USE NEUTRAL ON OCCASION HE SAYS ANALYSTS SHOULD BE AS STRAIGHTFORWARD AS POSSIBLE BUT HE LAMENTS THAT HE HAS ALREADY SEEN ONE RESEARCH REPORT FROM A COMPETITOR IN WHICH AN ANALYST DECLARED HE WAS AGGRESSIVELY NEUTRAL MR FEUERMAN SAID HE DID THE SAME THING LAST WEEK WHEN HE PULLED HIS BUY RECOMMENDATION ON OUTBACK STEAKHOUSE ONE OF THOSE HIGHFLYING RESTAURANT STOCKS THAT EVERYONE KEEPS WAITING TO TAKE A TUMBLE OUTBACK DROPPED 6 IN A DAY JAY CUSHMAN MORGAN STANLEY'S HEAD OF US RESEARCH SAYS THE STRONGHOLD RATING ISN'T AN OFFICIAL CATEGORY OUR CATEGORIES HAVEN'T CHANGED BUY HOLD AND SELL HE SAYS ADDING FROM TIME TO TIME ANALYSTS WILL TRY TO QUALIFY THE NICE PLAIN BUY SELL OR HOLD WITH ADJECTIVES ANALYSTS DO THAT YESTERDAY WITH NO FURTHER RECOMMENDATIONS ISSUING FORTH FROM WALL STREET CRACKER BARREL SLIPPED A FURTHER 3/4 TO 27 3/4 CRACKER BARREL IS A LEBANON TENN OPERATOR OF 151 COUNTRYSTORE RESTAURANTS WITH GIFT SHOPS ITS EARNINGS GROWTH HAS BEEN EXCELLENT BUT IT BECAME A HARD STOCK TO RECOMMEND AT A NEARRECORD PRICE THAT THIS WEEK HIT A MULTIPLE OF 45 TIMES THE PAST 12 MONTHS' PERSHARE EARNINGS THE STOCK HAD RISEN 50 SINCE MORGAN STANLEY RECOMMENDED IT LAST YEAR ONE UNSETTLING DEVELOPMENT FOR THE STOCK CORPORATE INSIDERS HAVE TRIMMED THEIR HOLDINGS RECENTLY BEFORE TUESDAY'S SELLING BINGE CHAIRMAN DAN W EVINS SOLD 110499 SHARES OR A SIGNIFICANT 22 OF HIS HOLDINGS WHEN THE PRICE WAS AT 31 IN LATE MAY ACCORDING TO SECURITIES AND EXCHANGE COMMISSION FILINGS DONALD M TURNER SENIOR VICE PRESIDENT FOR OPERATIONS SOLD ALL 80250 OF HIS SHARES AT THE SAME TIME SIX OTHERS SOLD IMMEDIATELY AFTER EXERCISING OPTIONS CHIEF FINANCIAL OFFICER JIMMIE D WHITE SAYS THE BATCH OF SELLING OCCURRED BECAUSE THE COMPANY HAD OPENED A WINDOW FOR INSIDER SELLING IN MAY AFTER EARNINGS CAME OUT MR EVINS COULDN'T BE REACHED FOR COMMENT MR TURNER WHO STILL HOLDS OPTIONS SAID THE SALES WERE FOR PERSONAL REASONS NOTHING TO DO WITH THE COMPANY CRACKER BARREL IS A GREAT COMPANY THE INSIDER SELLING DOESN'T BOTHER MORGAN STANLEY'S MR FEUERMAN IT'S TYPICAL FOR A FASTGROWING COMPANY HE MAINTAINS YOU DON'T LOVE TO SEE IT BUT IT'S JUST NOT A VERY GOOD INDICATOR HE SAYS 9306170088 930617 ENTERPRISE SMALL FIRMS USE VARIETY OF PLOYS TO RAISE PRICES BY MICHAEL SELZ STAFF REPORTER OF THE WALL STREET JOURNAL WHILE SOME BIG COMPANIES ARE TAKING ADVANTAGE OF THE FRAGILE RECOVERY TO RAISE PRICES FEW SMALL CONCERNS ARE FOLLOWING SUIT INSTEAD MANY ARE SNEAKING PRICE INCREASES IN THROUGH THE BACK DOOR SMALL COMPANIES ARE MORE RELUCTANT TO RAISE PRICES THAN THEIR LARGER COUNTERPARTS SAYS ERIC MITCHELL PRESIDENT OF PRICING ADVISOR INC AN ATLANTA CONSULTING CONCERN AND NEWSLETTER PUBLISHER THEIR FEAR OF LOSING MARKET SHARE AND REVENUE IS GREATER IT TAKES A REAL JOLT OF INFLATION TO WAKE THEM UP BUT SMALL COMPANIES ARE FINDING ALTERNATIVES TO BROAD PRICE RISES INDIRECTLY CHARGING MORE THROUGH A VARIETY OF STRATEGIES THESE INCLUDE REDUCING THE SIZE OF ALL DISCOUNTS INCREASING THE SIZE OF PURCHASES REQUIRED TO GET DISCOUNTS AND NO LONGER GIVING DISCOUNTS TO YOUR WORST CUSTOMERS MR MITCHELL SAYS AMERICAN LOCK & SUPPLY INC A WHOLESALE DISTRIBUTOR OF LOCKS AND OTHER DOOR HARDWARE WITH 70 MILLION IN ANNUAL SALES COPED WITH CUSTOMER RESISTANCE TO HIGHER PRICES BY OVERHAULING ITS DISCOUNT POLICY UNTIL 1990 THE ANAHEIM CALIF COMPANY HAD ONLY A FEW DISCOUNTS TIED MAINLY TO VOLUME TODAY IT TAILORS HUNDREDS OF DIFFERENT PRICING PROGRAMS NOT ONLY TO VOLUME BUT ALSO TO HOW MUCH CUSTOMIZED SERVICE BUYERS REQUIRE AND HOW FAST THEY PAY THEIR BILLS SAYS SEAN DEFORREST THE CONCERN'S PRESIDENT WHILE SOME AMERICAN LOCK CUSTOMERS COMPLAINED ABOUT THE CHANGES MR DEFORREST ADDS MOST STAYED PUT AFTER THE COMPANY EMPHASIZED THAT ITS PRICES WERE STILL COMPETITIVE THE USE OF INCREASINGLY COMPLEX PRICING TACTICS IS A BIG CHALLENGE FOR US MR DEFORREST SAYS SETTING PRICES DURING CORPORATE STRATEGY SESSIONS GOBBLES UP 50 OF OUR TIME HE NOTES BUT IT DOES RAISE AVERAGE PRICES WITHOUT THESE DISCOUNTING CHANGES HE ADDS I REALLY BELIEVE WE'D BE OUT OF BUSINESS MANAGEMENT CONSULTANT H GENE BERGER CAREFULLY EXAMINED ONE CLIENT'S CUSTOMER BASE TO FIGURE OUT WHETHER IT COULD INCREASE PRICES SELECTIVELY IN 1991 THE NEW YORK HOMEHEALTH CARE CONCERN WITH 15 MILLION IN ANNUAL REVENUE HIRED MR BERGER TO HELP TURN IT AROUND MR BERGER PRESIDENT OF CONSULTANTS JAY ILE ASSOCIATES IN SCOTCH PLAINS NJ BEGAN BY ANALYZING THE COMPANY'S PRICING STRUCTURE HE DISCOVERED THAT SOME CUSTOMERS WERE PAYING AS LITTLE AS ONETHIRD WHAT COMPETITORS CHARGED MR BERGER SAYS HE GRADUALLY RAISED THESE CUSTOMERS' PRICES AS MUCH AS 50 OVER AN 18MONTH PERIOD WHILE STILL KEEPING THEM BELOW RIVALS' PRICE LEVELS FEW CUSTOMERS QUESTIONED THE HIGHER PRICES HE RECALLS BECAUSE THEY KNEW THE COMPANY'S RATES WERE LOW AND BECAUSE THEY WEREN'T HIT WITH A HUGE INCREASE ALL AT ONCE MR BERGER SAYS HE ALSO AVOIDED THE COMMON MISTAKE OF WIDELY ANNOUNCING THE PLAN WHICH IS WHY HE DECLINES TO IDENTIFY HIS CLIENT YOU DON'T WANT TO CALL ATTENTION TO YOURSELF HE SAYS ESPECIALLY IF YOU'RE RUNNING A LITTLE COMPANY THAT RELIES ON A SMALL NUMBER OF CUSTOMERS IN ALGOMA WIS SLUGGISH DEMAND IN THE FACE OF RISING LUMBER COSTS HAS FORCED WOODDOOR MAKER ALGOMA HARDWOODS INC TO ATTACK RESISTANCE TO HIGHER PRICES ON SEVERAL OTHER FRONTS SAYS WENDELL ELLSWORTH CHAIRMAN AND PRESIDENT FOR ONE THING MR ELLSWORTH SAYS ALGOMA IS TRYING TO COMMAND A PREMIUM FOR EXCLUSIVE PRODUCTS LAST YEAR IT INTRODUCED SPECIALLY REINFORCED DOORS WITH EXTRALARGE WINDOWS NOW REQUIRED IN CERTAIN BUILDINGS TO COMPLY WITH THE AMERICANS WITH DISABILITIES ACT THE COMPANY PRICED THE DOOR 10 TO 15 HIGHER THAN ITS STANDARD PRODUCTS DURING THE PAST SIX MONTHS THE NEW PRODUCT LINE HAS INCREASED TOTAL SALES OF THE COMPANY'S DOORS WITH WINDOWS BY 20 TO 30 MR ELLSWORTH SAYS COMPETITORS HAVE YET TO COME OUT WITH A COMPETING PRODUCT HE ADDS ALGOMA IS ALSO ENFORCING ITS CONTRACTS' PRICEESCALATION CLAUSES WHICH PROTECT THE COMPANY AGAINST INCREASES IN RAW MATERIAL COSTS THE CLAUSES STATE THAT QUOTED PRICES ARE GOOD FOR SIX MONTHS BUT THEN INCREASE NEARLY 1 A MONTH PREVIOUSLY THE COMPANY OFTEN WAIVED THE PROVISION MR ELLSWORTH SAYS THE DOOR MANUFACTURER IS EVEN HELPING CUSTOMERS TO OPERATE MORE EFFICIENTLY AND THUS INCREASE THEIR WILLINGNESS TO ABSORB HIGHER PRICES LATER LAST YEAR ALGOMA REASSIGNED A FACTORY FOREMAN TO THE FULLTIME JOB OF SHOWING CONSTRUCTION SUBCONTRACTORS FASTER AND LESSEXPENSIVE WAYS TO CUSTOMIZE ALGOMA DOORS FULLERTON METALS CO A PROCESSOR AND DISTRIBUTOR OF METAL PRODUCTS WITH 85 MILLION IN ANNUAL SALES IS FOCUSING ON IMPROVING ITS OWN EFFICIENCY TO HOLD DOWN PRICE INCREASES AS BEST WE CAN SAYS KENNETH RISKIND PRESIDENT AND CHIEF EXECUTIVE OF THE NORTHBROOK ILL CONCERN EARLIER THIS YEAR FULLERTON NEARLY HALVED THE 37 STEPS PREVIOUSLY REQUIRED TO MAKE GOODS ON ONE PRODUCTION LINE FOR EXAMPLE INSTEAD OF RETRIEVING SUPPLIES DAYS IN ADVANCE AND STORING THEM ON THE FACTORY FLOOR WHERE THEY WERE SOMETIMES DAMAGED THAT INVENTORY IS NOW PULLED RIGHT BEFORE IT IS NEEDED SUCH MEASURES HAVE REDUCED THAT PRODUCTION LINE'S COSTS 20 MR RISKIND SAYS AS A RESULT WHEN BIG STEEL MILLS RAISED PRICES EARLIER THIS YEAR THE PRICE OF SHEET STEEL ROSE 15 FOR INSTANCE WE DIDN'T HAVE TO PASS ON ALL OF THE INCREASE TO OUR CUSTOMERS MR RISKIND RECALLS HE DECLINES TO DISCLOSE THE SIZE OF FULLERTON'S INCREASE SOME OTHER SMALL COMPANIES ARE ALSO RAISING PRICES PARTICULARLY THOSE THAT DOMINATE A MARKET NICHE BUT IN GENERAL FEW SMALL MANUFACTURERS ARE LIFTING PRICES THESE DAYS DUN & BRADSTREET CORP'S INDEX OF SELLING PRICES AT SMALL MANUFACTURERS HAS PERFORMED ERRATICALLY IN RECENT MONTHS RISING IN JANUARY FEBRUARY AND APRIL BUT FALLING IN MARCH AND MAY THAT CONTRASTS WITH THE US LABOR DEPARTMENT'S PRODUCER PRICE INDEX FOR FINISHED GOODS THE INDEX HAS RISEN EVERY MONTH THIS YEAR EXCEPT MAY WHEN THE INDEX WAS UNCHANGED MANY OF MY CLIENTS ARE HESITANT TO INCREASE PRICES RIGHT NOW BECAUSE COMPETITION IS VERY FIERCE FOR WHAT BUSINESS IS OUT THERE SAYS ROBERT BRAVERMAN PRESIDENT OF BRAN MANAGEMENT SERVICES INC A DALLAS CONSULTANT FOR SMALL COMPANIES IN SUCH AN ENVIRONMENT CREATIVE PRICERAISING STRATEGIES WILL GROW MORE POPULAR AMONG SMALL BUSINESSES SAYS MR MITCHELL OF PRICING ADVISOR COMPARED WITH TRADITIONAL METHODS OF INCREASING PRICES THEY MINIMIZE THE RISK THAT YOU'LL APPEAR OUT OF STEP WITH THE TIMES 9306170087 930617 BUSINESS BRIEF JMB REALTY JOINING OTHER DEVELOPERS PLANS TO RAISE CAPITAL IN PUBLIC OFFERING JMB REALTY CORP A CHICAGOBASED REALESTATE COMPANY PLANS TO RAISE ABOUT 300 MILLION BY ISSUING STOCK IN A PORTFOLIO OF REGIONAL SHOPPING MALLS JOINING A GROWING PARADE OF DEVELOPERS ATTEMPTING TO RAISE CAPITAL THROUGH PUBLIC OFFERINGS URBAN SHOPPING CENTERS INC A NEW COMPANY BEING CREATED BY JMB SAID IN A SECURITIES AND EXCHANGE COMMISSION FILING IT WILL BUY A CONTROLLING INTEREST IN A PARTNERSHIP THAT OWNS SEVEN REGIONAL MALLS TWO COMMUNITY CENTERS AND TWO PROJECTS UNDER DEVELOPMENT A JMB AFFILIATE WILL RETAIN A 42 INTEREST IN THE PARTNERSHIP THE MONEY WILL BE USED TO REDUCE DEBT ON THE PROPERTIES TO FINANCE NEW PROJECTS AND FOR WORKING CAPITAL JMB IS FOLLOWING THE LEAD OF SEVERAL OTHER MALL DEVELOPERS THAT HAVE TRANSFORMED THEIR COMPANIES INTO REALESTATE INVESTMENT TRUSTS A ALFRED TAUBMAN TOOK HIS COMPANY TAUBMAN CENTERS INC PUBLIC LAST FALL RAISING 295 MILLION AND DES MOINESBASED GENERAL GROWTH PROPERTIES INC FOLLOWED WITH A 363 MILLION OFFERING RECENTLY CROWN AMERICAN CORP JOHNSTOWN PA ANNOUNCED PLANS FOR A PUBLIC OFFERING TO RAISE AS MUCH AS 435 MILLION IN ITS SEC FILING URBAN SHOPPING CENTERS SAID IT ANTICIPATES AN ANNUAL DIVIDEND YIELD OF 696 BASED ON THE EXPECTED OFFERING PRICE TAUBMAN CENTERS CURRENTLY TRADES AT A 62 YIELD AND GENERAL GROWTH AT 63 LIKE MANY LARGE REALESTATE DEVELOPMENT FIRMS JMB HAS COME UNDER FINANCIAL PRESSURE IN RECENT YEARS AS SEVERAL LARGE INVESTMENTS TURNED SOUR AND LOANS CAME DUE AT A TIME WHEN MANY LENDERS HAVE WITHDRAWN FROM THE MARKET IT HAS ALREADY SOLD OFF A NUMBER OF PROPERTIES AND RESTRUCTURED THE DEBT ON OTHERS THEY ARE WORKING VERY VERY HARD TO GAIN LIQUIDITY SAID ONE CHICAGO REALESTATE EXECUTIVE WHO HAS WORKED WITH THE FIRM THIS IS A WAY FOR THEM TO DO THAT URBAN SHOPPING CENTERS WILL TAKE OVER ALL THE RETAIL PROPERTY MANAGEMENT LEASING AND DEVELOPMENT ACTIVITIES OF JMB AS SUCH IT APPEARS THAT JMB WILL NOT DERIVE ANY FEE INCOME FROM THE NEW COMPANY IT APPEARS TO REPRESENT A REAL CHANGE IN THE WAY THEY DO BUSINESS AT JMB SAYS MIKE KIRBY OF GREEN STREET ADVISORS A NEWPORT BEACH CALIF REALESTATE RESEARCH FIRM IN THE PAST THEY GENERATED A LOT OF INCOME BY CAPTURING FEE INCOME OFF REALESTATE DEALS THEY PUT TOGETHER IT'S NOT POSSIBLE TO RAISE CAPITAL LIKE THAT IN THE 1990S AMONG THE PROPERTIES TO BE OWNED BY THE NEW COMPANY ARE CHICAGO'S WATER TOWER PLACE THE OAKBROOK CENTER IN THE CITY'S SUBURBS AND MAINPLACE IN SANTA ANA CALIF MERRILL LYNCH & CO IS LEAD UNDERWRITER FOR THE OFFERING 9306170086 930617 DUPONT OFFERS TO PAY FOR CROP DAMAGE IF NEW TEST SHOWS BENLATE CAUSED HARM BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL DUPONT CO BUFFETED BY ALLEGATIONS THAT IT COVERED UP EVIDENCE OF CROP DAMAGE CAUSED BY ITS BENLATE DF FUNGICIDE LAUNCHED AN ATTEMPT TO HEAD OFF HUNDREDS OF COSTLY TRIALS EDGAR S WOOLARD JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OFFERED A BENLATE CHALLENGE TO THE MORE THAN 400 GROWERS WHO USED THE COMPOUND AND HAVE EACH SUED THE CHEMICAL PRODUCER DUPONT AGREED TO ENTER INTO LEGALLY BINDING TESTS OF BENLATE'S TOXICITY PAID FOR BY DUPONT AND CONDUCTED AT ONE OF 10 TOP AGRICULTURAL UNIVERSITIES HE SAID IF THE TESTS SHOW DAMAGE CAUSED BY BENLATE DUPONT WILL PAY GROWERS FOR THE DAMAGES ALLEGED IN THEIR SUITS IF NO DAMAGE IS FOUND THE GROWERS MUST AGREE TO DROP THEIR CLAIMS AGAINST DUPONT MR WOOLARD SAID MR WOOLARD'S PUBLICRELATIONS GAMBIT IS THE LATEST TWIST IN THE BIGGEST CASE OF ALLEGED PESTICIDE CROP DAMAGE IN HISTORY FROM MARCH 1991 THROUGH EARLY NOVEMBER 1992 DUPONT PAID OUT ABOUT 500 MILLION TO GROWERS WHO SAID BENLATE DAMAGED THEIR CROP IT STOPPED PAYMENTS LAST NOVEMBER AFTER SAYING ITS RESEARCHERS HAD CONCLUDED BENLATE DIDN'T CAUSE THE DAMAGE AFTER ALL THE FIRST OF THE BENLATE SUITS IS SCHEDULED FOR TRIAL BEGINNING JULY 6 IN FEDERAL COURT IN COLUMBUS GA DUPONT'S FUTURE BENLATE LIABILITY IF ANY IS UNCLEAR JUST THE FOUR CASES GOING TO TRIAL JULY 6 ALLEGE TOTAL BENLATE LOSSES OF 79 MILLION THE FOUR ALSO ASK FOR 79 MILLION MORE IN PUNITIVE DAMAGES BASED ON ALLEGATIONS THAT DUPONT DEFRAUDED GROWERS BY WITHHOLDING KNOWLEDGE THAT BENLATE HAD BEEN FOUND TO DAMAGE PLANTS UNDER CERTAIN CONDITIONS SCORES OF OTHER BENLATE SUITS SEEK CROP AND PUNITIVE DAMAGES THE COMPANY ALSO ANNOUNCED THAT ONE OF ITS OUTSIDE DIRECTORS HOWARD W JOHNSON PRESIDENT EMERITUS AND FORMER CHAIRMAN OF THE CORPORATION OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY HAS BEEN NAMED TO INVESTIGATE ANY ACCUSATIONS OF SPECIFIC WRONGDOING MADE BY EMPLOYEES OR OTHERS ABOUT THE CHEMICAL COMPANY'S BENLATE INVESTIGATION GROWERS SUING DUPONT ARE RELYING HEAVILY ON INTERNAL DUPONT DOCUMENTS MOST KEPT FROM PUBLIC VIEW BY A PROTECTIVE ORDER ENTERED IN FEDERAL COURT THAT THEY SAY DEMONSTRATE DUPONT KNEW BENLATE DAMAGED PLANTS UNDER CERTAIN CONDITIONS MR WOOLARD REPEATED DUPONT'S PREVIOUS ASSERTION THAT DOCUMENTS THAT HAVE SURFACED IN THE COURSE OF PRETRIAL HEARINGS RAISED SEVERAL THEORIES ABOUT BENLATE CONTAMINATION THAT WERE SUBSEQUENTLY DISPROVED BY COMPANY RESEARCHERS THE COMPANY SAID ITS POLICY IS TO KEEP SUCH DOCUMENTS COVERED BY A PROTECTIVE ORDER TO PROTECT POSSIBLE TRADE AND OTHER SECRETS LAWYERS FOR SEVERAL GROWERS SUING DUPONT DISMISSED THE COMPANY'S LATEST DEFENSE AS PUBLIC RELATIONS C NEAL POPE AN ATTORNEY REPRESENTING THE FOUR GROWERS SUING DUPONT IN FEDERAL COURT IN COLUMBUS SAID I'LL HAVE MY BENLATE CHALLENGE ON JULY 6 MR WOOLARD SPEAKING AT A NEWS BRIEFING NEAR DUPONT'S WILMINGTON DEL HEADQUARTERS SAID DUPONT WAS TAKING ITS CASE CONCERNING BENLATE TO THE COURT OF PUBLIC OPINION HE SAID HE HOPED DUPONT WOULD FARE BETTER THERE THAN IT HAS SO FAR IN PRETRIAL HEARINGS IN FEDERAL COURT ON FRIDAY JUDGE J ROBERT ELLIOTT SAID AT A PRETRIAL HEARING IN COLUMBUS THAT HE HAD CONCLUDED THAT DUPONT WITHHELD KEY DOCUMENTS FROM GROWERS WHO USED BENLATE AS A RESULT HE THREATENED TO TAKE THE UNUSUAL STEP OF DIRECTING A JURY TO FIND DUPONT LIABLE FOR BENLATE DAMAGES EARLIER JUDGE ELLIOTT FINED DUPONT 1 MILLION FOR WHAT HE SAID WAS THE COMPANY'S FAILURE TO PRODUCE DOCUMENTS FOR PLAINTIFFS DUPONT DISPUTES THE JUDGE'S CONCLUSION THAT IT WITHHELD DOCUMENTS SAYING IT HAS GIVEN TO PLAINTIFFS MORE THAN THREE MILLION PAGES OF INTERNAL DOCUMENTS RELATING TO BENLATE IN FLORIDA STATE AGRICULTURAL COMMISSIONER BOB CRAWFORD SUBPOENAED MR WOOLARD AND OTHER DUPONT EXECUTIVES TO EXPLAIN INTERNAL DUPONT DOCUMENTS THAT MR CRAWFORD SAID SHOW BENLATE CAUSES PLANT DAMAGE MR WOOLARD SAID THE COMPANY OFFICIALS WEREN'T BOUND BY THE SUBPOENAS TO APPEAR IN FLORIDA BUT THAT COMPANY EXECUTIVES HAVE OFFERED TO MEET WITH MR CRAWFORD IN A SCIENTIFIC SETTING TO DISCUSS BENLATE'S EFFECTS ON PLANTS MR WOOLARD SAID THAT DUPONT WAS TAKING THESE UNUSUAL PUBLIC STEPS LESS THAN THREE WEEKS BEFORE THE FIRST BENLATE TRIAL BECAUSE SOME OF OUR OPPONENTS HAVE ASSERTED THAT WE HAVE WILLFULLY COVERED UP EVIDENCE IN SO DOING THEY IMPUGN OUR MOTIVES AND DISGRACE THE CHARACTER OF DUPONT AND ITS PEOPLE AS A RESULT HE SAID WE HAVE BEEN GETTING QUESTIONS FROM WALL STREET CUSTOMERS AND EMPLOYEES ASKING IF THERE IS ANY TRUTH TO ANY OF THESE ASSERTIONS WALL STREET ANALYSTS SAID THAT THE 555 MILLION THAT DUPONT HAS RESERVED IN THE PAST TWO YEARS TO COVER ITS BENLATE LIABILITY AND AN UNDISCLOSED AMOUNT OF INSURANCE COVERAGE THAT DUPONT CARRIES ESTIMATED TO BE AT LEAST 200 MILLION MEAN THAT THE CONTINUING DISPUTE ABOUT BENLATE WON'T HAVE A MATERIAL EFFECT ON DUPONT'S OPERATIONS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY DUPONT SHARES CLOSED AT 49625 DOWN 125 CENTS 9306170085 930617 AT&T FOUNDATION PLANS INDUSTRIAL ECOLOGY GRANTS NEW YORK THE AT&T FOUNDATION ANNOUNCED A GRANT PROGRAM FOR INDUSTRIAL ECOLOGY TO WHICH IT EXPECTS TO COMMIT AS MUCH AS 1 MILLION IN THE NEXT FIVE YEARS THE PHILANTHROPIC ARM OF AMERICAN TELEPHONE & TELEGRAPH CO SAID IT WILL AWARD FIVE 50000 FACULTY FELLOWSHIPS IN OCTOBER WINNERS WILL COME FROM 56 UNIVERSITIES INVITED TO SUBMIT PROPOSALS THE FOUNDATION SAID IT ALSO WILL FUND FORUMS ON INDUSTRIAL ECOLOGY AND HAS COMMITTED A 165000 GRANT AS PRIMARY SPONSOR OF AN INTERNATIONAL CONFERENCE BY THE NATIONAL ACADEMY OF ENGINEERING NEXT YEAR INDUSTRIAL ECOLOGY VIEWS PRODUCTDESIGN AND MANUFACTURING PROCESSES IN AN ENVIRONMENTAL CONTEXT THE FOUNDATION SAID IT INVOLVES CHEMISTRY PHYSICS MATERIALS SCIENCE ENGINEERING PUBLIC POLICY ECONOMICS AND LAW 9306170084 930617 FINANCING BUSINESS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC SAID IN DALLAS THAT IT COMPLETED THE PUBLIC OFFERING OF 300 MILLION OF 625 NOTES DUE JUNE 1 2000 PROCEEDS FROM THE OFFERING MANAGED BY MERRILL LYNCH & CO WILL BE USED TO REPLACE SHORTTERM COMMERCIAL PAPER USED TO FINANCE RECENT ACQUISITIONS DRESSER IS AN ENERGY SERVICES AND ENGINEERING CONCERN 9306170083 930617 WHO'S DADDY A LOS ANGELES LAWYER SPECIALIZES IN HELPING NONBIOLOGICAL FATHERS GLEN SCHWARTZ WINS RULINGS BY STRESSING CARE GIVING OVER THE MERE GENETICS THE CHILD BELIEVES THE LIE' BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE FIVEYEAROLD BLONDE GIRL ON A SWING GLIDES BACKWARD INTO THE ARMS OF A HEAVYSET BALDING MAN PUSH ME HIGHER DADDY SHE SQUEALS OK HE SAYS WITH A SMILE AS LONG AS YOU COME RIGHT BACK TO ME UNTIL RECENTLY KEVIN THOMAS WASN'T SURE THAT COURTNEY WOULD BE COMING BACK AT ALL HE HAD HELPED RAISE HER FROM BIRTH BUT LAST YEAR THE GIRL'S MOTHER STOPPED ALLOWING THEM TO SPEND TIME TOGETHER MR THOMAS WHO IS GAY ISN'T COURTNEY'S BIOLOGICAL FATHER HE IS A FORMER FRIEND OF HER MOTHER'S BUT INSTEAD OF WALKING AWAY MR THOMAS TURNED TO ATTORNEY GLEN SCHWARTZ WHO MARCHED INTO COURT AND DECLARED THAT HIS CLIENT'S CLOSE RELATIONSHIP WITH THE CHILD IS THE ESSENCE OF WHAT IT MEANS TO BE A FATHER THAT PRETRIAL ARGUMENT PERSUADED A JUDGE TO AWARD MR THOMAS TEMPORARY VISITATION RIGHTS WITH AN IMPLICIT RECOGNITION OF FATHERHOOD COURTNEY'S MOTHER IS CONTESTING THE RULING AND TRIAL IS SET TO BEGIN MONDAY THE DAY AFTER FATHER'S DAY IF NOT FOR GLEN SCHWARTZ I WOULDN'T HAVE MY DAUGHTER WITH ME NOW SAYS MR THOMAS A BILLCOLLECTIONS MANAGER AS HE WALKS HANDINHAND WITH COURTNEY OUT OF A PLAYGROUND IN A SMALL NEIGHBORHOOD PARK COURTNEY HER HAIR TIED IN PINKRIBBONED PIGTAILS SMILES UP AT HIM SHE HAS NEVER KNOWN HER NATURAL FATHER A ONETIME BOYFRIEND OF HER MOTHER MR SCHWARTZ HAS BECOME A SPECIALIST IN NONBIOLOGICAL FATHER CASES BY PERSUADING SEVERAL JUDGES TO RECOGNIZE MEN'S PARENTAL CLAIMS TO CHILDREN WHO AREN'T THEIR NATURAL OR ADOPTIVE OFFSPRING HE HAS FIGURED PROMINENTLY IN AN INTENSIFYING LEGAL DEBATE IT'S THE MIRRORIMAGE OF THE SURROGATEMOTHER QUESTION CONFOUNDING THE COURTS DOES BIOLOGY OR THE INTENT TO CARE FOR A CHILD CONSTITUTE PARENTHOOD THE VICTORIES OF MR SCHWARTZ AND A FEW OTHERS ARE FORCING APPELLATE JUDGES IN CALIFORNIA TO CONSIDER A LEGAL DEFINITION OF FATHERHOOD THAT ACKNOWLEDGES MEN WHO ACT AS A PARENT BUT LACK BIOLOGICAL TIES TO THE CHILD OR EVEN FORMAL TIES TO THE MOTHER IT WOULD MEAN A NEW APPROACH TO RECOGNIZING THE FATHERCHILD RELATIONSHIP IN OUR COURT SYSTEM AND PERHAPS NATIONWIDE SAYS LOS ANGELES COUNTY SUPERIOR COURT JUDGE RICHARD DENNER IN THE PAST COURTS DIDN'T HAVE MUCH TROUBLE DECIDING WHERE BABIES CAME FROM LEGALLY SPEAKING MOTHERHOOD WAS EASY TO DETERMINE FATHERHOOD ALTHOUGH ELUSIVE AS A MATTER OF PROOF COULD BE DEFINED AS A MATTER OF LAW FOR EXAMPLE AN ANTIILLEGITIMACY STATUTE IN MOST STATES PRESUMES THAT A BABY BORN TO A MARRIED WOMAN IS HER HUSBAND'S CHILD BUT WITH THE SPREAD OF SINGLE PARENTHOOD AND OTHER NONTRADITIONAL HOMES THE OLD LEGAL DOCTRINES HAVE BECOME LESS APPLICABLE THE PRESUMPTION OF FATHERHOOD IN MARRIAGE DOESN'T DICTATE WHAT HAPPENS WHEN A COUPLE ONLY LIVES TOGETHER AND THEN BREAKS UP OR AS IN THE THOMAS CASE WHEN AN UNWED PREGNANT WOMAN DECIDES WITH A FRIEND THAT THEY BOTH WILL PARTICIPATE IN RAISING HER BABY AND THEN HAVE A FALLING OUT THAT HASN'T DETERRED MR SCHWARTZ AN AFFABLE MAN WHO LOOKS LIKE A COMPACT VERSION OF GERALDO RIVERA AND HAS A COURTROOM STYLE ONLY SLIGHTLY LESS PERSISTENT THAN THE TALKSHOW HOST'S IN THE PAST TWO YEARS HE HAS WON THREE CASES ON BEHALF OF NONBIOLOGICAL FATHERS AND HAS AT LEAST TWO MORE IN THE PRETRIAL STAGE IN ADDITION ANOTHER CASE HAS BEEN TRIED AND IS AWAITING A DECISION AS EARLY AS TODAY BY A JUDGE IN NORTHERN CALIFORNIA I HAVE LARRY JUNIOR TODAY BECAUSE GLEN WASN'T AFRAID TO TRY AND MAKE NEW LAW SAYS LARRY MCLINDEN A LOS ANGELES BANKER WHOSE LIVEIN GIRLFRIEND AFTER THEY BROKE UP SURPRISED HIM WITH THE NEWS THAT THEIR TWOYEAROLD SON WASN'T HIS BIOLOGICAL CHILD AFTER ALL MR SCHWARTZ WON PATERNITY RIGHTS FOR MR MCLINDEN LAST YEAR PREVAILING OVER THE CLAIMS OF THE MOTHER HER NEW HUSBAND AND THE BOY'S NATURAL FATHER LAST MONTH THE MOTHER'S APPEAL WAS DISMISSED CALIFORNIA WHICH GAVE THE COUNTRY PALIMONY SUITS AND LIBERAL COMMUNITYPROPERTY LAWS IS WHERE FAMILY LAW IS EVOLVING THE FASTEST AND THE 43YEAROLD MR SCHWARTZ IS CREDITED BY COLLEAGUES AND JUDGES WITH HANDLING THE MOST CASES INVOLVING THE PATERNITY ISSUE HE REALLY KNOWS THE ARGUMENTS IN THIS AREA SAYS RETIRED LOS ANGELES SUPERIOR COURT JUDGE DANA HENRY MR SCHWARTZ DOESN'T FIT THE FLASHY LA LAW IMAGE MARRIED FOR 16 YEARS WITH TWO SCHOOLAGE CHILDREN HE WORKS OUT OF A NONDESCRIPT BUILDING BESIDE A COMMERCIAL STRIP IN SAN FERNANDO VALLEY HE PUTS IN LONG DAYS AND PREPARES HIS CASES MOSTLY FROM MEMORY A CONGENITAL NERVOUSSYSTEM DISORDER LEFT HIM WITH A TREMOR THAT AFFECTS HIS ABILITY TO TAKE NOTES ALTHOUGH MR SCHWARTZ TAKES ON A VARIETY OF CLIENTS AND SOMETIMES REPRESENTS THE OTHER SIDE IN PARENTHOOD CASES HE RECENTLY REPRESENTED A MOTHER AGAINST A NONBIOLOGICAL FATHER AND WON HE HAS MADE HIS MARK HELPING NONBIOLOGICAL FATHERS WITH THEIR UNUSUAL CUSTODY FIGHTS TO DO SO HE SEEKS PARALLELS IN ANOTHER AREA OF FAMILY LAW CHILD SUPPORT THREE KEY DECISIONS OF THE CALIFORNIA COURT OF APPEALS DICTATE THAT A MAN WHO MARRIES A WOMAN AND ACTS AS FATHER TO HER CHILD FOR A NUMBER OF YEARS CAN'T SUDDENLY STOP SUPPORT PAYMENTS IF HE LATER DIVORCES HER THOSE CASES MEAN THAT ONCE YOU'VE REPRESENTED TO A CHILD YOU'RE HIS FATHER AND THE CHILD RELIED ON THAT YOU CAN'T DENY IT MR SCHWARTZ SAYS NOW I'M USING THAT ARGUMENT IN THE AFFIRMATIVE MR SCHWARTZ DIDN'T INVENT THE TACTIC BUT HE PRIDES HIMSELF ON HAVING COME UP WITH A WAY TO PRESENT IT CLEARLY IN COURT HE FRAMES THE THEORY AS A SIMPLE STATEMENT THE CHILD BELIEVES THE LIE REGARDLESS OF BIOLOGICAL EVIDENCE TO THE CONTRARY HE CONTENDS THE LEGAL SYSTEM SHOULD FAVOR THE LIE ABOUT PATERNITY THAT THE CHILD HAS BEEN LED TO ACCEPT AS PROOF MR SCHWARTZ TYPICALLY OFFERS EVIDENCE OF STATEMENTS MADE BY EITHER PARENT AND CALLS FOR THE TESTIMONY OF A PSYCHOLOGIST WHO HAS INTERVIEWED THE CHILD ABOUT THE EMOTIONAL BOND WITH THE PERSON SEEKING PATERNITY THE RATIONALE INFURIATES THE WOMEN SUED BY HIS CLIENTS THIS MAN NEVER MARRIED ME HAS NO BIOLOGICAL TIES TO MY SON AND DIDN'T ADOPT HIM BUT NOW THEY'RE TRYING TO SAY HE'S THIS EMOTIONAL FATHER' FUMES STEPHANIE K A SOUTHERN CALIFORNIA OFFICE MANAGER WHO IS APPEALING HER DEFEAT LAST YEAR IN A NONBIOLOGICALFATHER CASE THE CASE WAS FILED UNDER SEAL AND MS K ASKS THAT HER LAST NAME BE WITHHELD MR SCHWARTZ REPRESENTED HER FORMER BOYFRIEND PAUL COMINO A CONSUMERLOAN OFFICER WHO SAYS HE BELIEVED THAT THE CHILD THEY RAISED TOGETHER TO AGE TWO WAS HIS BIOLOGICAL SON UNTIL THEY SEPARATED AND BLOOD TESTS PROVED OTHERWISE AN ORANGE COUNTY TRIAL JUDGE AWARDED MR COMINO SHARED CUSTODY OF THE BOY JOSHUA PAUL NOW FOUR YEARS OLD SAYS MS K THE ISSUE ISN'T DO I WANT MR COMINO TO SEE JOSH OR VISIT WITH HIM IT'S DOES MR COMINO HAVE A RIGHT TO BE CALLED MY SON'S FATHER BECAUSE HE TOOK HIM FISHING BECAUSE JOSH CALLS HIM DADDY' DOES HE HAVE A RIGHT TO HAVE A CONTROLLING INTEREST IN MY CHILD IN PREPARATION FOR TRIAL IN THE CASE OF KEVIN THOMAS AND COURTNEY MR SCHWARTZ HAS ALREADY LAID MUCH OF THE GROUNDWORK FOR TRYING TO PROVE AN EMOTIONAL CONNECTION AWAITING A HEARING RECENTLY IN LOS ANGELES SUPERIOR COURT HE CARRIED AN ALBUM OF PHOTOS TAKEN OVER THE PAST FIVE YEARS AT MR THOMAS'S HOUSE AT COURTNEY'S SCHOOL AND AT THE SPECIAL OLYMPICS WHERE COURTNEY WHO IS MILDLY RETARDED PARTICIPATED THERE ALSO ARE FATHER'S DAY AND BIRTHDAY CARDS THAT COURTNEY'S MOTHER HAS SIGNED TO MR THOMAS ON HER DAUGHTER'S BEHALF I LIKE TO SHOW THE JUDGE TANGIBLE EVIDENCE OF THE BOND MR SCHWARTZ SAYS HE HAS A COPY OF COURTNEY'S BIRTH CERTIFICATE NAMING MR THOMAS AS THE FATHER AND A DOCUMENT SHOWING THAT MR THOMAS HAD CHANGED HIS LAST NAME TO THAT OF COURTNEY'S MOTHER CATHY THOMAS BECAUSE THE CHILD'S DOCTORS AND TEACHERS WERE CALLING HIM MR THOMAS MS THOMAS'S LAWYER ARNOLD FREEDLAND PROTESTS THAT MR SCHWARTZ AND HIS CLIENT ARE EXPLOITING A SINGLE WOMAN'S ACQUIESCENCE TO A STRANGER WHO CONTRIVED TO SHARE HER FAMILY LIFE BECAUSE HE KNEW HE WOULD NEVER HAVE CHILDREN OF HIS OWN MR FREEDLAND SAYS THE APPELLATE DECISIONS CITED BY MR SCHWARTZ ARE INAPPLICABLE BECAUSE THEY DEALT WITH BROKEN MARRIAGES AND HIS CLIENT AND MR THOMAS WERE NEVER EVEN ROMANTICALLY INVOLVED DOES COURTNEY COMPREHEND WHAT DADDY' REALLY MEANS MR FREEDLAND ASKS MAYBE SHE'LL THINK SOMETHING ELSE WHEN SHE GETS A LITTLE OLDER A LOT OF PEOPLE DEFER SOME OF THEIR CHILDRAISING TO ANOTHER PERSON DOES THAT MAKE SUCH A PERSON THE CHILD'S PARENT MS THOMAS DIDN'T RETURN PHONE CALLS SEEKING COMMENT COURTNEY'S NATURAL FATHER PLANS TO APPEAR IN COURT TO SUPPORT MS THOMAS'S CLAIM HER LAWYER SAYS MR SCHWARTZ FACES AN UPHILL BATTLE IN OTHER CASES INVOLVING UNRELATED OR NONADOPTING MEN WHO WANT PARENTAL RIGHTS HIGHER COURTS HAVE NEARLY ALWAYS DEFERRED TO BIOLOGY IN A RARE CASE IN WHICH A HIGHER COURT DID SPECIFICALLY PROVIDE FOR PATERNITY RIGHTS OF A NONBIOLOGICAL FATHER A MICHIGAN APPEALS COURT IN DETROIT IN 1987 RULED IN FAVOR OF A MAN WHO LEARNED DURING DIVORCE PROCEEDINGS THAT HE WASN'T THE NATURAL FATHER OF A CHILD BORN DURING HIS MARRIAGE THE COURT RECOGNIZED A SPECIAL CATEGORY CALLED EQUITABLE PARENT WHICH HAS BEEN APPLIED IN VERY LIMITED CIRCUMSTANCES IN CALIFORNIA AN APPEALS COURT DENIED VISITATION RIGHTS TO A MAN WHO HAD MARRIED A WOMAN AFTER HER CHILD WAS CONCEIVED AND ACTED AS THE BABY GIRL'S FATHER UNTIL THE COUPLE SEPARATED WHEN SHE WAS 11 MONTHS OLD THE TRIAL JUDGE HAD CALLED IT PATENTLY ALMOST RIDICULOUS TO ASSUME THAT SO YOUNG A CHILD KNEW THE MAN AS HER FATHER BUT THAT DECISION IS 11 YEARS OLD AND MR SCHWARTZ SAYS ISN'T APPLICABLE BECAUSE IT INVOLVED AN INFANT STEVEN REIN THE LAWYER WHO REPRESENTED THE MOTHER OF YOUNG LARRY MCLINDEN DISAGREES HE SAYS CALIFORNIA COURTS ARE STILL INCLINED TO FAVOR A BIOLOGICAL PARENT'S CLAIM OVER THAT OF A PERSON WITH ONLY EMOTIONAL TIES HE CITES A 1989 RULING DENYING PARENTAL RIGHTS TO THE LESBIAN LOVER OF THE MOTHER OF TWO TEENAGERS BUT MR SCHWARTZ'S ARGUMENT ECHOES OTHER CALLS TO RECOGNIZE EMOTIONAL TIES NOT GENETICS AS PARAMOUNT KNOWING A SCIENTIFIC FACT ABOUT A RELATIONSHIP ISN'T THE ANSWER TO REALLY FUNDAMENTAL QUESTIONS THAT GO TO LOVE AND CARE GIVING SAYS BARBARA BENNETT WOODHOUSE A UNIVERSITY OF PENNSYLVANIA PROFESSOR OF FAMILY LAW WHO CONTENDED IN A RECENT LAWREVIEW ARTICLE THAT A CHILD'S BOND WITH A WOULDBE FATHER SHOULD HOLD SWAY HOWEVER SOME CRITICS WORRY THAT THAT COULD INVITE PARENTALRIGHTS CLAIMS BY ALL SORTS OF CHILDCARE PROVIDERS SUCH AS NANNIES OR DISTANT RELATIVES OTHERS SUCH AS ORGANIZATIONS THAT ADVOCATE THE RIGHT OF BIRTH PARENTS TO OPEN ADOPTION RECORDS SAY MR SCHWARTZ'S ANALYSIS OF NONBIOLOGICALFATHER CASES SLIGHTS THE IMPORTANCE OF FILIAL TIES THERE'S GOT TO BE SENSITIVITY TO THE NONRELATED PERSON WHO HELPS RAISE A CHILD BUT THERE SHOULD BE A HIGHER RIGHT FOR THE BIOLOGICAL PARENT SAYS STEVE SHELDON OF THE TRADITIONAL VALUES COALITION A CONSERVATIVE LOBBYING GROUP LESLIE SHEAR A LOS ANGELES ATTORNEY WHO HAS OPPOSED MR SCHWARTZ IN A NONBIOLOGICALFATHER CASE ASKS IF WE DEFINE A FAMILY ON THE BASIS OF ATTACHMENT WHAT MOMENT IN HISTORY DO YOU PICK WHAT HAPPENS IF THE FIRST MAN DROPS OUT AND THEN YOU HAVE A BIOLOGICAL FATHER WHO'S INTERESTED IN RECLAIMING HIS ROLE MR SCHWARTZ WILL TAKE HIS CHANCES IN COURT IN THE FLUORESCENTLIGHTED HALLWAY ON THE SECOND FLOOR OF THE LOS ANGELES COUNTY COURTHOUSE WHERE MOST FAMILYLAW CASES ARE HEARD THE BENCHES ARE FULL OF CHILDREN AND ADULTS EYEING EACH OTHER WARILY BUT MR SCHWARTZ IS RELAXED HE PLAYFULLY PULLS AT THE HANDKERCHIEF IN THE BREAST POCKET OF A LAWYER WHO ONCE WENT UP AGAINST HIM AFTER YEARS OF REPRESENTING PEOPLE IN TORMENT HE HAS LEARNED NOT TO BECOME TOO INVOLVED WITH HIS CLIENTS' FAMILIES HE NEVER MET LARRY MCLINDEN JR OR JOSHUA COMINO HE SAW COURTNEY THOMAS ONCE I HAVE NO PARTICULAR INTEREST IN MEETING THESE CHILDREN HE SAYS THAT SOUNDS COLD AND DETACHED BUT WHEN A LAWYER CROSSES THE LINE AND BECOMES EMOTIONALLY INVOLVED HE LOSES HIS EFFECTIVENESS 9306170082 930617 SHEARSON TAKES TWO ROADS ON INVERSE FLOATERS' BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL HERE'S A TALE YOU'LL APPRECIATE IF SOMEBODY TRIES TO SELL YOU ONE OF THOSE EXOTIC SECURITIES SHEARSON LEHMAN BROTHERS JUST TACKLED THE THORNY QUESTION OF WHETHER IT SHOULD SELL INVERSE FLOATERS TO INVESTORS AND CAME UP WITH THE ANSWER YES AND NO SPECIFICALLY ONE PART OF SHEARSON THE LEHMAN BROTHERS DIVISION IS PRESSING AHEAD WITH PLANS TO SELL SOPHISTICATED INVESTORS SUCH AS INSTITUTIONS MORE OF THE FAROUT SECURITIES KNOWN AS MUNICIPAL BOND INVERSE FLOATERS BUT THE BROKERAGE ARM OF SHEARSON THAT CATERS TO SMALL INVESTORS HAS JUST SCUTTLED PLANS FOR AN INVERSEFLOATER MUTUAL FUND SAYING THE TIMING IS WRONG IT'S A LITTLE ON THE HUMOROUS SIDE SAYS JAMES ERICKSON CHIEF INVESTMENT OFFICER OF TAXEXEMPT INVESTMENTS AT PUTNAM COS A BIG BUYER OF INVERSE FLOATERS UNTIL THE END OF LAST YEAR THE SPLIT DECISION ALSO SHEDS SOME LIGHT ON HOW BROKERAGE HOUSES MAKE MARKETING PLANS THE SAGA BEGAN MONTHS AGO AMONG THE MATH WHIZZES IN THE LEHMAN BROTHERS INC MUNICIPALDERIVATIVES DEPARTMENT LED BY NICHOLAS ROZSMAN A MANAGING DIRECTOR THEY THOUGHT IT WOULD BE A DANDY IDEA TO LAUNCH A NEW TYPE OF MUTUAL FUND THAT WOULD INVEST HEAVILY IN INVERSE FLOATERS WHICH AS THE NAME SUGGESTS TEND TO ZIG WHEN OTHER BONDS ZAG WHY NOT LEHMAN WAS ALREADY A LEADER IN THE MARKET FOR THESE ZIPPY BUT RISKY SECURITIES WHICH PAY MORE THAN A PLAINVANILLA BOND IF SHORTTERM RATES FALL AND LESS IF THEY RISE MOREOVER INSTITUTIONS HAVE DONE FAMOUSLY WITH INVERSE FLOATERS FOR THREE YEARS SO MR ROZSMAN'S CAMP FIGURED A MUTUAL FUND WOULD ATTRACT YIELDHUNGRY SMALL INVESTORS THE MATH EXPERTS PASSED THE WORD TO JOSEPH J PLUMERI SHEARSON'S HEAD OF BROKERAGE OPERATIONS HE DECIDED THAT IF A FUND WAS TO BE LAUNCHED HE WOULD WANT A TOP MONEY MANAGER AT THE COMPANY'S ASSETMANAGEMENT UNIT SHEARSON LEHMAN ADVISORS INC TO CONSIDER RUNNING IT JOSEPH DEANE WAS ANOINTED HE CURRENTLY MANAGES THE 176 BILLION SHEARSON MANAGED MUNICIPALS FUND A WHICH RANKED FIRST AMONG GENERAL MUNICIPAL BOND FUNDS FOR THE FIRST FIVE MONTHS OF THE YEAR WITH AN 847 TOTAL RETURN THE MATH WHIZZES PERSUADED MR DEANE'S GROUP TO REGISTER THE FUND WITH THE SECURITIES AND EXCHANGE COMMISSION ON FEB 19 SHEARSON LEHMAN ADVISORS FILED PLANS FOR A 60 MILLION PUBLICLY TRADED OR CLOSED END MUNICIPAL FUND THAT WOULD HAVE ABOUT 60 OF ITS INITIAL INVESTMENTS IN INVERSE FLOATERS SOON AFTER THE SEC FILING THE MATH EXPERTS MET WITH MR DEANE TO DISCUSS THE FUND FURTHER BUT THE MEETING'S TIMING COULDN'T HAVE BEEN WORSE ACCORDING TO BOTH SIDES SHORTLY BEFORE IT INTEREST RATES HAD PLUNGED TO THEIR LOWEST LEVELS IN TWO DECADES IN REACTION TO PRESIDENT CLINTON'S PROPOSED ECONOMIC PACKAGE IN THE END THE LEHMAN WHIZZES NEVER GOT A CHANCE TO ELABORATE ON THEIR VISION OF A MUTUAL FUND BEING MANAGED WITH A BUYANDHOLD PHILOSOPHY THAT'S BECAUSE MR DEANE WASN'T INTERESTED IN LAUNCHING AND RUNNING THE FUND IT WASN'T THE RIGHT TIME MR DEANE ARGUED AT THE MEETING TO BE INVESTING IN A FUND THAT WAS IN ESSENCE MAKING A LEVERAGED BET ON EVEN LOWER INTEREST RATES LEVERAGE IS NOT WHAT YOU WANT TO BE DOING RIGHT NOW HE ADDS IN AN INTERVIEW ESPECIALLY AFTER THE SHARP INTERESTRATE DECLINES SO FAR THIS YEAR BESIDES MR DEANE IS KNOWN TO BE A VERY ACTIVE FUND MANAGER AND NO FAN OF BUYANDHOLD INVESTING ESPECIALLY IN VOLATILE SECURITIES SUCH AS INVERSE FLOATERS MR DEANE HAS PREVIOUSLY DISPLAYED SKEPTICISM ABOUT INVERSE FLOATERS HE SAYS HE HAS NONE IN HIS OWN FUNDS IN MARCH SHORTLY AFTER PASSING UP THE CHANCE TO LAUNCH THE PROPOSED FUND HE COMMENTED TO THIS NEWSPAPER FOR A SEPARATE ARTICLE THAT IF YOU CAN PREDICT THE BEHAVIOR OF INVERSE FLOATERS CONGRATULATIONS YOU ARE THE FIRST PERSON ON EARTH TO DO SO OTHERS IN THE MUTUALFUND INDUSTRY ARE IMPRESSED BY MR DEANE'S STAND JOE IS A GOOD MONEY MANAGER AND A VERY VOCAL YOUNG MAN SAID MR ERICKSON OF PUTNAM BUT IF HE DIDN'T HAVE GOOD PERFORMANCE IN THE FUNDS HE MANAGES HE'D PROBABLY BE OUT OF A JOB FOR TURNING UP HIS NOSE AT THE PROPOSAL LESS THAN A MONTH AFTER BEING REBUFFED BY ONE OF ITS OWN SHEARSON LEHMAN BROTHERS TOOK ANOTHER TACK IT MADE AN SEC FILING THROUGH AN AFFILIATE NAMED LEHMAN STRUCTURED ASSETS INC TO CREATE AND SELL EVEN MORE INVERSE FLOATERS USING A STRUCTURE ALREADY POPULAR IN THE MARKET FOR MORTGAGEBACKED SECURITIES THE COLLATERALIZED MORTGAGE OBLIGATION OR CMO ONE OF WALL STREET'S MOST PROFITABLE AND COMPLEX CREATURES OF THE PAST DECADE LIKE OTHER RECENT FILINGS BY DEAN WITTER DISCOVER & CO AND MERRILL LYNCH & CO LEHMAN BROTHERS' FILING PROPOSES TO COLLECT INVESTMENTGRADE MUNICIPAL BONDS IN THE OPEN MARKET AND THEN REPACKAGE THE POOL INTO AN ARRAY OF SPECIALLY TAILORED INSTRUMENTS INCLUDING INVERSE FLOATERS THE SEC HASN'T YET CLEARED THE FILINGS OF COURSE LEHMAN BROTHERS SAYS THERE'S A BIG DIFFERENCE BETWEEN SELLING INVERSE FLOATERS TO SOPHISTICATED INSTITUTIONS THAT WANT TO MAKE A LEVERAGED BET ON LOWER INTEREST RATES AND PLACING FLOATERS INTO A MUTUAL FUND WITH A BUYANDHOLD PHILOSOPHY IN ANY CASE THE ASSET MANAGEMENT GROUP IS SCHEDULED TO BE SPLIT OFF FROM AMERICAN EXPRESS SOMETIME IN JULY AS PART OF THE SALE OF SHEARSON LEHMAN BROTHERS TO PRIMERICA CORP'S SMITH BARNEY HARRIS UPHAM & CO SHEARSON'S ASSET MANAGEMENT BUSINESSES ARE DISTINCT AND AUTONOMOUS UNITS WITHIN THE FIRM SAYS ONE LEHMAN BROTHERS OFFICIAL THE UNITS' PORTFOLIO MANAGERS ARRIVE AT THEIR VIEWPOINTS INDEPENDENTLY IT'S NOT SURPRISING THAT ON OCCASION THEIR PERSPECTIVES DIFFER ROBERT MCGOUGH CONTRIBUTED TO THIS ARTICLE 9306170080 930617 DIAL AND BAYER'S MILES ARE UNDER PROBE BY US AGENCY FOR ALLEGED PRICE FIXING BY VALERIE REITMAN STAFF REPORTER OF THE WALL STREET JOURNAL MILES INC AND DIAL CORP ARE BEING INVESTIGATED BY THE US JUSTICE DEPARTMENT OVER ALLEGED PRICE FIXING OF SOS AND BRILLO SOAP PADS AS A FEDERAL GRAND JURY INVESTIGATES THE ENTIRE HOUSEHOLD CLEANING PRODUCTS INDUSTRY A SPOKESWOMAN FOR THE JUSTICE DEPARTMENT WHICH ISSUED SUBPOENAS TO BOTH MILES AND DIAL DECLINED TO COMMENT ON THE SOAP PAD INVESTIGATION SHE SAID THE DEPARTMENT HAD TURNED OVER TO A GRAND JURY INFORMATION GATHERED IN ITS INVESTIGATION INTO POSSIBLE ANTITRUST VIOLATIONS IN THE ENTIRE HOUSEHOLD CLEANING PRODUCTS AREA SHE WOULD NOT ELABORATE OR SPECIFY WHETHER MILES AND DIAL WERE A PART OF THE LARGER INVESTIGATION MILES THE US SUBSIDIARY OF GERMANY'S BAYER AG SAID TWO SENIOR EXECUTIVES AT ITS CHICAGO CONSUMER HOUSEHOLD PRODUCTS BUSINESS HAD BEEN RELIEVED MONDAY OF THEIR RESPONSIBILITIES AND WILL BE TERMINATED AFTER ITS OWN INTERNAL INVESTIGATION REVEALED THAT THE TWO MEN HAD VIOLATED COMPANY POLICIES PROHIBITING DISCUSSION OF CUSTOMER LISTS PRICES AND TERRITORIES WITH COMPETITORS MILES MAKES SOS SOAP PADS WHICH DOMINATE THE ESTIMATED 195 MILLION A YEAR MARKET IN CHICAGO IN A STATEMENT DIAL CHAIRMAN JOHN TEETS SAID THE PHOENIX SOAP MAKER'S INTERNAL INVESTIGATION HAD FOUND ABSOLUTELY NO EVIDENCE OF WRONGDOING HE NOTED THAT 1992 WAS A VERY COMPETITIVE YEAR AND THAT BRILLO'S PRICE HAD DECLINED FROM 1990 EVEN THOUGH MILES THE NO 1 COMPETITOR WAS RAISING PRICES CONSISTENTLY ON ITS SOS SOAP PADS THE JUSTICE DEPARTMENT'S INVESTIGATION OF MILES AND DIAL WAS FIRST REPORTED BY THE CHICAGO TRIBUNE THE MILES EXECUTIVES RELIEVED OF THEIR DUTIES ARE STEPHEN M REIM 51YEAROLD SENIOR VICE PRESIDENT OF MILES AND PRESIDENT OF ITS CONSUMER HOUSEHOLD PRODUCTS BUSINESS UNIT WHO HAD BEEN EMPLOYED BY MILES FOR 27 YEARS AND CHARLES C CULSHAW DIRECTOR OF MARKETING MR REIM DID NOT RETURN PHONE CALLS SEEKING COMMENT MR CULSHAW SAID HE WAS NOT AT LIBERTY TO DISCUSS THE MATTER BUT THAT THE ALLEGED PRICE FIXING IS A NONISSUE AS FAR AS I'M CONCERNED BOTH COMPANIES SAID THEY WOULD COOPERATE FULLY WITH THE JUSTICE DEPARTMENT INVESTIGATION MILES BASED IN PITTSBURGH SAID IT HAD RECENTLY BEGUN ITS OWN INTERNAL INVESTIGATION AND WAS ABOUT TO ALERT THE AUTHORITIES WHEN IT WAS CONTACTED BY THE JUSTICE DEPARTMENT THE COMPANY INFORMED THE 275 EMPLOYEES AT ITS CHICAGO HOUSEHOLD PRODUCTS PLANT WHICH MAKES SOS TUFFY SCRUB PADS AND CUTTER INSECT REPELLENT OF THE MATTER MONDAY A SPOKESMAN SAID THE DIVISION HAS SALES OF A FEW HUNDRED MILLION BUT DECLINED TO BE MORE SPECIFIC MILES'S SOS LED LAST YEAR WITH ABOUT 26 OF THE MARKET FOR SOAPFILLED PADS SCOURING AND NYLON SPONGES FOLLOWED BY MINNESOTA MINING & MANUFACTURING CO'S SCOTCHBRITE WITH 112 AND BRILLO WITH 93 ACCORDING TO INFORMATION RESOURCES INC MILES WITH ANNUAL SALES OF ABOUT 65 BILLION ALSO MAKES PRODUCTS INCLUDING ALKASELTZER BACTINE AND ONEADAY VITAMINS 9306170079 930617 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG YESTERDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT AMERICAN EXPRESS CREDIT CORP 300 MILLION ISSUE OF AMERICAN EXPRESS CREDIT CORP NOTES DUE JUNE 15 2000 PRICED AS 6125S AT 99556 TO YIELD 6204 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 065 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED DOUBLEA3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS AMERICAN EXPRESS CREDIT IS A UNIT OF AMERICAN EXPRESS CO CLEVELAND ELECTRIC ILLUMINATING CO 100 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 1 2003 PRICED AS 7375S AT 99958 TO YIELD 738 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 143 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO CLEVELAND ELECTRIC IS A UNIT OF CENTERIOR ENERGY CORP COMMERCIAL CREDIT CO 100 MILLION OF NOTES DUE MAY 15 1998 PRICED AS 55S AT 99526 TO YIELD 5613 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 045 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS COMMERCIAL CREDIT IS A UNIT OF PRIMERICA CORP COMMERCIAL CREDIT CO 100 MILLION OF NOTES DUE JUNE 15 2000 PRICED AS 6S AT 9961 TO YIELD 6069 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 051 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS HOUSEHOLD FINANCIAL CORP 75 MILLION OF NOTES DUE JUNE 30 1998 PRICED AS 6S AT 99571 TO YIELD 61 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 09 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE RATED BAA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS AND RBC DOMINION SECURITIES HOUSEHOLD FINANCIAL IS A CANADIAN UNIT OF HOUSEHOLD INTERNATIONAL INC NORSK HYDRO AS 300 MILLION OF DEBENTURES DUE JUNE 15 2023 PRICED AS 775S AT 99535 TO YIELD 779 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 097 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO ELCOR CORP 115 MILLION COMMON SHARES AT 28 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO INTERNATIONAL IMAGING MATERIALS INC INITIAL OFFERING OF THREE MILLION COMMON SHARES AT 14 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO NORWOOD PROMOTIONAL PRODUCTS INC INITIAL PUBLIC OFFERING OF 15 MILLION COMMON SHARES AT 11 APIECE CALIFORNIA 2 BILLION OF REVENUE ANTICIPATION WARRANTS APPARENTLY WON BY A NUMBER OF BIDDERS WINNERS INCLUDE A LEHMAN BROTHERS GROUP THAT OBTAINED 14 BILLION OF THE WARRANTS 11 BILLION WITH A BID SETTING THE NET INTEREST COST AT 2156 AND THE REMAINING 300 MILLION WITH A BID OF 212 THE WARRANTS WHICH CARRY AN AUG 10 CALL DATE ARE DUE DEC 23 1993 HAVE A 22 COUPON AND ARE PRICED TO YIELD 2 MOODY'S HAS RATED THE SECURITIES MIG1 AND S&P HAS ASSIGNED AN SP1 RATING OTHER APPARENT RESULTS BANK OF AMERICA EVIDENTLY WON 100 MILLION OF THE WARRANTS WITH A BID SETTING THE NET INTEREST COST AT 208 THE SECURITIES AREN'T FORMALLY REOFFERED FIRST BOSTON CORP EVIDENTLY WON 100 MILLION OF THE WARRANTS WITH A BID SETTING THE NET INTEREST COST AT 21 THE SECURITIES HAVE A 22 COUPON AND ARE PRICED TO YIELD 175 THROUGH THE CALL DATE A MERRILL LYNCH & CO GROUP EVIDENTLY WON 100 MILLION OF THE WARRANTS WITH A BID SETTING THE NET INTEREST COST AT 2148 THE SECURITIES HAVE A 22 COUPON AND ARE PRICED TO YIELD 2 THROUGH THE CALL DATE A JP MORGAN SECURITIES INC GROUP EVIDENTLY WON 200 MILLION OF THE WARRANTS 100 MILLION WITH A BID SETTING THE NET INTEREST COST AT 208 AND 100 MILLION WITH A BID SETTING THE NET INTEREST COST AT 2145 THE WARRANTS HAVE A 215 COUPON AND ARE PRICED TO YIELD 2 THROUGH THE CALL DATE A MORGAN STANLEY & CO GROUP EVIDENTLY WON 100 MILLION OF THE WARRANTS WITH A BID SETTING THE NET INTEREST COST AT 21 THE WARRANTS HAVE A 22 COUPON AND ARE PRICED TO YIELD 175 THROUGH THE CALL DATE IF CALIFORNIA DECIDES TO SELL REFUNDING WARRANTS TO REDEEM THE WARRANTS SOLD THOSE SECURITIES WILL BE SUBJECT TO THE STATE'S UNCONDITIONAL STANDBY BID AGREEMENT WITH LEHMAN BROTHERS GOLDMAN SACHS & CO AND JP MORGAN SECURITIES INC UNDER THE AGREEMENT EACH INSTITUTION IS OBLIGATED TO BID ON THE PURCHASE OF ANY REFUNDING WARRANTS THE STATE OFFERS GEORGIA 2549 MILLION VARIOUS GENERALOBLIGATION BONDS APPARENTLY WON BY A JP MORGAN & CO GROUP WITH A BID SETTING THE NET INTEREST COST AT 49736 YIELDS RANGE FROM 24 IN 1994 TO 53 IN 2012 AND 2013 THE BONDS HAVE A TRIPLEA RATING FROM MOODY'S AND A DOUBLEAPLUS RATING FROM S&P HOUSTON 100 MILLION SERIES 1993 TAX AND REVENUE ANTICIPATION NOTES APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 2465 THE NOTES HAVE A 3 COUPON AND ARE PRICED TO YIELD 24 ON JUNE 29 1994 THEY HAVE A MIG1 RATING FROM MOODY'S AND AN SP1PLUS RATING FROM S&P PHILADELPHIA HOSPITAL & HIGHER EDUCATION FACILITIES AUTHORITY 1279 MILLION REVENUE REFUNDING BONDS PRICED BY A JP MORGAN & CO GROUP YIELDS RANGE FROM 23 IN 1994 TO 576 IN 2021 THE BONDS HAVE A DOUBLEA RATING FROM BOTH MOODY'S AND S&P SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY 2352 MILLION 1993 SERIES A OFFERING FOR THE SAN JUAN PROJECT PRICED BY A FIRST BOSTON CORP SAN FRANCISCO GROUP INCLUDED IN THE ISSUE ARE 1872 MILLION FIXEDRATE BONDS WHICH ARE PRICED TO YIELD FROM 42 IN 1997 TO 57 IN 2020 THERE ARE ALSO 24 MILLION OF DERIVATIVES CALLED AUCTION RATE SECURITIES AND 24 MILLION OF INVERSE FLOATERS WHICH WILL MATURE IN 2013 THE ISSUE IS INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRIES TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P VIRGINIA 100 MILLION 1993 SERIES B PUBLICFACILITIES GENERALOBLIGATION BONDS APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 49882 YIELDS RANGE FROM 315 IN 1995 TO 535 IN 2013 THE BONDS HAVE A TRIPLEA RATING FROM BOTH MOODY'S AND S&P FEDERAL HOME LOAN MORTGAGE CORP 325 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1552 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS ABN AMRO AUSTRALIA AUSTRALIA 100 MILLION AUSTRALIAN DOLLARS OF 7 EURONOTES DUE JULY 30 1998 AT ISSUE PRICE 10112 VIA BARCLAYS DE ZOETE WEDD GUARANTOR ABN AMRO BANK FEES NOT DISCLOSED DEUTSCHE BANK FINANCE NV GERMAN PARENT 50 BILLION YEN OF 4375 EUROBONDS DUE JULY 16 1998 AT ISSUE PRICE 101095 VIA DAIWA EUROPE LTD REOFFERED AT 9947 TO YIELD 45 SPREAD 35 BASIS POINTS ABOVE JAPANESE GOVERNMENT BOND NUMBER NO 111 GUARANTOR DEUTSCHE BANK AG FEES 1875 POINTS EUROPEAN INVESTMENT BANK SUPRANTIONAL 500 MILLION GUILDERS OF 6625 EUROBONDS DUE JULY 15 2003 AT ISSUE PRICE 10045 VIA INTERNATIONALE NEDERLANDEN BANK NV REOFFERED AT 996 TO YIELD 667 MARGIN EIGHT BASIS POINTS ABOVE COMPARABLE DUTCH STATE LOAN FEES ONE POINT HESSISCHE LANDESBANK HESSEN UND THURINGEN GERMANY 100 MILLION FRANCS OF 475 SUBORDINATED PUBLIC BONDS DUE JULY 15 2003 PRICED AT 10125 VIA ZUERCHER KANTONALBANK FEES 2375 POINTS KINGDOM OF SWEDEN SOVEREIGN 250 MILLION CANADIAN DOLLARS OF 675 EUROBONDS DUE DEC 30 1996 AT ISSUE PRICE 1004 VIA HAMBROS BANK REOFFERED AT 99225 TO YIELD 699 SPREAD 40 BASIS POINTS OVER 65 CANADIAN GOVERNMENT NOTE DUE AUG 1996 FEES 1375 POINTS LKB BADENWUERTTEMBERG FINANCE NV GERMANY LANDESKREDITBANK BADENWUERTTEMBERG 500 MILLION OF 625 HYBRID EURO/DRAGON BONDS DUE JULY 16 2003 REOFFERED AT 99802 VIA NOMURA INTERNATIONAL PLC YIELD 628 AT REOFFER PRICE SPREAD 25 BASIS POINTS ABOVE 10YEAR TREASURY BOND LISTING LUXEMBOURG AND SINGAPORE EXCHANGES GUARANTOR LANDESKREDITBANK BADENWUERTTEMBERG FEES 0325 POINT NEC SYSTEM INTEGRATION & CONSTRUCTION LTD JAPAN 130 MILLION SWISS FRANCS OF PRIVATELY PLACED CONVERTIBLE 1125 NOTES DUE SEPT 30 1997 AT PAR VIA SWISS BANK CORP EACH 50000FRANC NOTE IS CONVERTIBLE FROM JULY 12 1993 TO SEPT 19 1997 INTO COMPANY SHARES TERMS ARE FIXED JUNE 21 FEES 1625 POINTS SOCIETE CENTRALE DES CAISSES D'EPARGNE POUR L'EMISSION AT LE CREDIT FRANCE 850 MILLION FRANCS OF NOTES DUE JUNE 2 2003 REOFFERED AT 103069 VIA PARIBAS LTD THE ISSUE WILL TRADE INTERCHANGEABLY WITH 15 BILLION FRANCS OF IDENTICAL OUTSTANDING BONDS LAUNCHED EARLIER THIS YEAR VIA PARIBAS LTD INTEREST IS PAID AT 35 BASIS POINTS BELOW THE TME RATE AN AVERAGE OF SECONDARYMARKET LONGTERM GOVERNMENTBOND YIELDS ORIGINAL ISSUE PRICED AT TME PLUS 10 BASIS POINTS FEES 035 POINT 9306170078 930617 COMMODITIES CRUDE OIL FUTURES TURN UP TO 1884 A BARREL AFTER REPORT OF A LARGE DECLINE IN US SUPPLIES BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL PETROLEUM PRICES REBOUNDED ON A COMBINATION OF AN INDUSTRY REPORT OF LOWER US CRUDE OIL SUPPLIES OPECRELATED NEWS AND TECHNICAL FACTORS IN US FUTURES TRADING LIGHT LOWSULFUR CRUDE OIL FOR JULY DELIVERY INCREASED 26 CENTS A BARREL TO SETTLE AT 1884 OTHER PETROLEUM FUTURES PRICES ALSO ROSE BOTH ON THE NEW YORK MERCANTILE EXCHANGE AND LONDON'S INTERNATIONAL PETROLEUM EXCHANGE THE GAINS CAME AFTER SEVERAL DAYS OF FALLING PRICES AS A RESULT OF THE OIL MARKET'S NEGATIVE REACTION TO THE INCONCLUSIVE END TO LAST WEEK'S MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THE OUTCOME HAD LEFT KUWAIT AND ITS RAPIDLY RECOVERING OIL PRODUCTION OUTSIDE OF OPEC'S QUOTA AGREEMENT FOR THE THIRD QUARTER YESTERDAY ALI AHMAD ALBAGHLI KUWAIT'S OIL MINISTER PLEDGED ANEW THAT EVEN THOUGH THE EMIRATE WOULD INCREASE ITS OUTPUT TO THE LEVEL OF THE OPEC QUOTA IT HAD SOUGHT IT WOULD DO SO GRADUALLY TO AVOID WRECKING THE OIL MARKET ALSO HE INSISTED THAT KUWAIT WOULDN'T BEGIN INCREASING PRODUCTION UNTIL AFTER JULY TRADERS SAID THE KUWAITI OIL MINISTER'S REMARKS MAY HAVE HELPED TO NUDGE THE FUTURES PRICE OF THE JULY CRUDE CONTRACT ABOVE THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 1875 A BARREL THAT IN TURN TRIGGERED SOCALLED TECHNICAL BUYING BUT THE MAIN CATALYST IN YESTERDAY'S UPTURN APPEARED TO BE THE WEEKLY REPORT OF THE AMERICAN PETROLEUM INSTITUTE RELEASED LATE TUESDAY AFTER THE FUTURES MARKET HAD CLOSED THE API REPORT SHOWED A SURPRISINGLY SHARP DECLINE OF NEARLY 68 MILLION BARRELS IN US INVENTORIES OF CRUDE OIL FOR LAST WEEK FEW IN THE INDUSTRY PUT MUCH FAITH IN THE ACCURACY OF A SINGLE WEEK'S FIGURES FROM THE API BECAUSE OF THE INEVITABLE REVISIONS THAT FOLLOW ROBERT BOSLEGO A WINCHESTER MASS CONSULTANT WHO INTERPRETS API STATISTICS FOR HIS CLIENTS SUGGESTED THAT LAST WEEK'S BIG DROP WAS A CORRECTION TO PRIOR DISCREPANCIES NEVERTHELESS THE API'S CRUDE OIL FIGURES DREW A BULLISH REACTION AMONG TRADERS AND FRESH BUYING IN THE FUTURES MARKETS IN BOTH THE US AND LONDON ALSO THE API YESTERDAY RELEASED ITS MONTHLY REPORT FOR MAY WHICH SHOWED A 34 RISE IN US DEMAND FOR PETROLEUM PRODUCTS FROM A YEAR EARLIER EVEN SO BEARISH SENTIMENT STILL PERVADES THE OIL MARKET LARGELY BECAUSE OF SKEPTICISM OVER OPEC'S ABILITY TO REIN IN ITS OVERPRODUCTION THIS TECHNICAL RALLY MAY CONTINUE A DAY OR TWO SAID THOMAS BLAKESLEE AN ENERGY ANALYST WITH THE NEW YORK COMMODITY BROKERAGE FIRM OF BRODY WHITE & CO BUT THE FUNDAMENTAL PICTURE DOESN'T LOOK VERY GOOD FOR THE NEXT 30 TO 60 DAYS IN OTHER COMMODITY MARKETS PRECIOUS METALS PRECIOUS METALS FUTURES MOVED HIGHER ACROSS THE BOARD GOLD FOR AUGUST DELIVERY EDGED UP 70 CENTS TO SETTLE AT 37150 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE YESTERDAY'S FIRMER TONE IN THE METAL'S FUTURES CONTRACTS FOLLOWED A RALLY OF 420 AN OUNCE ON TUESDAY ANALYSTS SAID GOLD A CLASSIC HEDGE AGAINST INFLATION SEEMS TO BE SHAKING OFF REPORTS OF WEAK TO MODERATE INFLATION IN THE US ECONOMY THE MARKET FOR NOW APPEARS TO BE FOCUSING ON BULLISH SUPPLY AND DEMAND FUNDAMENTALS FOR GOLD THEY SAID SILVER FOR JULY DELIVERY SPURTED 45 CENTS TO 4333 AN OUNCE ON THE COMEX PLATINUM FOR JULY DELIVERY CLIMBED 280 AN OUNCE TO 38350 ON THE NEW YORK MERCANTILE EXCHANGE TRADERS SAID THE FIRMER TONE REFLECTED CONTINUING CONCERNS ABOUT TIGHTNESS IN SUPPLIES FROM RUSSIA PALLADIUM FOR SEPTEMBER DELIVERY ROSE 165 AN OUNCE TO 12750 ON THE NEW YORK MERC LUMBER LUMBER FUTURES PRICES SKIDDED AS TRADERS EXPRESSED THEIR DISAPPOINTMENT ABOUT A FEDERAL REPORT ON HOUSING STARTS THE COMMERCE DEPARTMENT REPORTED HOUSING STARTS AT AN ANNUAL RATE OF 1244 MILLION UNITS IN MAY UP 24 THESE FIGURES WERE ROUGHLY HALF OF THE INCREASE THAT LUMBER TRADERS AT THE CHICAGO MERCANTILE EXCHANGE HAD BEEN HOPING FOR LUMBER FOR JULY DELIVERY DECLINED THE DAILY LIMIT OF 10 TO 27330 A THOUSAND BOARD FEET DESPITE THE DECLINE SOME ANALYSTS THINK SEASONAL DEMAND IS PICKING UP IN THE CASH MARKET FOR LUMBER WHICH MAY SIGNAL A GRADUAL UPWARD TREND IN PRICES THERE'S GROWING EVIDENCE THAT THE LOWS WE SAW OF 225 IN THE CASH MARKET EARLIER THIS MONTH SHOULD HOLD AND THE GRADUAL TREND IN PRICES OVER NEXT MONTH SHOULD BE HIGHER SAID WILLIAM O'NEILL CHIEF FUTURES STRATEGIST FOR MERRILL LYNCH BUT WE'RE IN THE EARLY STAGES OF THAT AND THE MARKET COULD STILL BE SUBJECT TO TWODIRECTION TRADING 9306170077 930617 MUNI UNDERWRITERS ARE ASKED FOR DATA ON POLITICAL GIFTS BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION SENT A BATCH OF LETTERS TO APPROXIMATELY 40 MORE MUNICIPALBOND UNDERWRITERS ASKING FOR DETAILS ON THEIR POLITICAL CONTRIBUTIONS TO GOVERNMENT OFFICIALS ACCORDING TO PEOPLE FAMILIAR WITH THE MATTER ABOUT 70 FIRMS WHICH ARE AMONG THE NATION'S LEADING UNDERWRITERS OF MUNICIPAL BONDS HAVE BEEN ASKED BY THE SEC'S ENFORCEMENT DIVISION TO PROVIDE INFORMATION VOLUNTARILY ON POLITICAL CONTRIBUTIONS AND OTHER PAYMENTS TO STATE AND LOCAL OFFICIALS IN CONNECTION WITH MUNICIPALBOND OFFERINGS MARY SCHAPIRO THE SEC'S ACTING CHAIRMAN DECLINED TO COMMENT WHEN ASKED ABOUT THE NEW WAVE OF LETTERS WHICH ARE SAID TO BE IDENTICAL TO THOSE SENT EARLIER THIS MONTH TO ABOUT 30 UNDERWRITERS THE SEC LETTER SAID THE AGENCY IS ASKING UNDERWRITERS FOR THEIR VOLUNTARY COOPERATION SAYING THEIR ANSWERS WILL HELP THE AGENCY ASSESS THE EXTENT TO WHICH POLITICAL CONTRIBUTIONS MAY AFFECT THE OFFER SALE AND UNDERWRITING OF MUNICIPAL SECURITIES THE INDUSTRYWIDE INQUIRY IS PART OF A BROADER REVIEW OF MUNICIPAL MARKET QUESTIONS WHICH THE SEC HOPES TO COMPLETE THIS SUMMER IN AN INTERVIEW MS SCHAPIRO SAID THAT WHILE THE POLITICAL CONTRIBUTIONS MATTER IS IMPORTANT OTHER MUNIMARKET ISSUES SUCH AS THE ADEQUACY OF SECONDARY MARKET DISCLOSURE SUITABILITY OF INVESTMENTS AND TIMELY DISSEMINATION OF PRICE INFORMATION MAY BE EVEN MORE IMPORTANT OVER THE LONG HAUL IN TERMS OF MARKET INTEGRITY THE SEC AND OTHER REGULATORY BODIES HAVE BEEN ASKED BY HOUSE ENERGY AND COMMERCE COMMITTEE CHAIRMAN JOHN DINGELL D MICH AND FINANCE SUBCOMMITTEE CHAIRMAN EDWARD MARKEY D MASS TO COMMENT ON THE ADEQUACY OF MUNIMARKET REGULATION IN LIGHT OF ALLEGATIONS OF ILLEGAL PAYOFFS AND OTHER POSSIBLE WRONGDOING IN CONNECTION WITH A 29 BILLION NEW JERSEY TURNPIKE BOND ISSUE AS WELL AS COMPLAINTS ABOUT INADEQUATE DISCLOSURE OF PRICESENSITIVE INFORMATION IN THE SECONDARY MARKET AND OTHER MARKETINTEGRITY QUESTIONS THE SEC AND US ATTORNEY'S OFFICE IN MANHATTAN ARE INVESTIGATING SUSPECTED ILLEGALITIES IN CONNECTION WITH THE NEW JERSEY BONDS AND THE INDUSTRYWIDE POLITICAL CONTRIBUTIONS INQUIRY COULD GENERATE ENFORCEMENT ACTION IN AN INTERVIEW SEC COMMISSIONER RICHARD ROBERTS SAID THE AGENCY WAS MOVING TOWARD A COMPREHENSIVE LOOK AT THE MUNI MARKET BEFORE THE NEW JERSEY TURNPIKE FLAP ERUPTED 9306170076 930617 TECHNOLOGY MEDICAL JOURNAL CRITICIZES MANAGED COMPETITION PLAN BOSTON THE NEW ENGLAND JOURNAL OF MEDICINE SAYS MANAGED COMPETITION THE CLINTON ADMINISTRATION'S PLAN FOR OVERHAULING US HEALTH CARE WILL FAIL AND IT URGES ADOPTION OF A CANADIANSTYLE HEALTH SYSTEM INSTEAD IN AN EDITORIAL IN TODAY'S ISSUE THE INFLUENTIAL WEEKLY PUBLICATION SAYS HEALTH CARE HAS BECOME THE BLACK HOLE OF OUR ECONOMY A GLOBAL CAP ON HEALTH SPENDING AS WELL AS POLICIES TO MINIMIZE RATHER THAN INCREASE PRICE COMPETITION ARE NEEDED TO SUCCESSFULLY REFORM THE SYSTEM IT SAYS MARKET FORCES ARE SIMPLY NOT SUITED TO DISTRIBUTING HEALTH CARE EFFICIENTLY ACCORDING TO MEDICAL NEED NO MATTER HOW SUCCESSFUL THE MARKET MAY BE IN DISTRIBUTING TOOTHPASTE OR COMPUTERS THE EDITORIAL SAYS IT WAS WRITTEN BY MARCIA ANGELL EXECUTIVE EDITOR OF THE JOURNAL A SINGLEPAYER SYSTEM SUCH AS CANADA'S IN WHICH THE GOVERNMENT RAISES TAXES TO PAY FOR CARE WOULD REDUCE ADMINISTRATIVE COSTS AND ELIMINATE COSTSHIFTING IN THE US IN WHICH PATIENTS PAY WIDELY VARYING RATES FOR THE SAME SERVICES DR ANGELL ARGUES THAT HEALTH PLANS MIGHT COLLUDE TO RAISE PRICES RATHER THAN COMPETE TO LOWER THEM UNDER MANAGED COMPETITION OR THAT THEY WOULD STINT ON SERVICES THUS DIVERTING MORE RESOURCES TO MONITORING CARE RATHER THAN DELIVERING IT 9306170075 930617 WEDNESDAY'S MARKETS INDUSTRIALS CLIMB 1965 DOLLAR GAINS TRIPLE WITCHING HOUR NEARS SPURRING WAVE OF COMPUTER BUYING BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL A LATE WAVE OF COMPUTERGUIDED BUYING PUSHED THE DOW JONES INDUSTRIAL AVERAGE HIGHER BOND PRICES ROSE AND THE DOLLAR SURGED THE DOW INDUSTRIALS GAINED 1965 POINTS TO 351165 STANDARD & POOR'S 500STOCK INDEX ROSE 116 TO 44743 BUT THE NASDAQ COMPOSITE INDEX LOST 109 TO 69625 THE DOW INDUSTRIAL AVERAGE WAS DOWN SEVERAL POINTS HEADING TOWARD THE CLOSE BEFORE THE COMPUTER BUYING KICKED IN ANALYSTS ATTRIBUTED THE SUDDEN SWING IN PRICES TO THE APPROACHING TRIPLE WITCHING HOUR ON FRIDAY WHEN OPTIONS AND FUTURES CONTRACTS EXPIRE CONCURRENTLY SOMETIMES SPARKING BOUTS OF PRICE VOLATILITY WITH ALL THE MONEY OUT THERE TO BE INVESTED AND WITH INTEREST RATES LOW THERE'S STILL A BIAS FOR THE MARKET ADVANCE TO CONTINUE SAID JOHN SHAUGHNESSY DIRECTOR OF RESEARCH AT ADVEST INC IN HARTFORD CONN I COULD SEE THE DOW ABOVE 3700 BY YEAR END BUT INVESTORS ARE GROWING INCREASINGLY WORRIED ABOUT QUARTERLY EARNINGS CAUTIONED JOSEPH MCALINDEN MARKET STRATEGIST AT DILLON READ HE POINTED TO THE BEATING AIRLINE STOCKS TOOK YESTERDAY AFTER USAIR GROUP SAID IT EXPECTS TO REPORT A LOSS IN THE QUARTER INVESTORS ARE QUITE WORRIED ABOUT HOW MUCH USAIR'S TROUBLES WILL SHOW UP IN OTHER AIRLINE COMPANIES MR MCALINDEN SAID THEY'RE ASKING WHETHER THE ECONOMY WILL BE ABLE TO GENERATE THE EARNINGS NECESSARY TO LIFT THE STOCK MARKET USAIR SLID 1 3/4 OR 93 TO 17 1/8 DRAGGING DOWN OTHER AIRLINE STOCKS WITH IT AS A RESULT THE DOW JONES TRANSPORTATION AVERAGE DROPPED 1471 TO 150790 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 061 TO 10637 THE DOLLAR RALLIED ON TRADERS' GROWING CONVICTION THAT GERMANY WILL SOON HAVE TO LOWER INTEREST RATES AGAIN TO HELP RESUSCITATE ITS AILING ECONOMY POSSIBLY AS EARLY AS TODAY'S BUNDESBANK POLICYMAKING COUNCIL MEETING IN THE PAST TWO DAYS THE DOLLAR HAS JUMPED MORE THAN 15 AGAINST THE MARK AND POUND AND ABOUT 1 AGAINST THE YEN IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2645 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 984 ISSUES ROSE AND 897 FELL THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16570 MARKS AND 10645 YEN COMPARED WITH 16455 MARKS AND 10575 YEN TUESDAY 9306170074 930617 THREE KASLER DIRECTORS VOTE AGAINST MERGER WITH MONTANA FIRM HIGHLAND CALIF THREE DISSIDENT DIRECTORS OF KASLER CORP WITH NEARLY A 10 SHARE IN THE COMPANY VOTED AGAINST A PROPOSED MERGER WITH WASHINGTON CONTRACTORS GROUP INC THE DIRECTORS CHARGED THAT IT WOULDN'T GIVE KASLER SHAREHOLDERS A BIG ENOUGH STAKE IN THE MERGED COMPANY IN FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION THE THREE DIRECTORS SAID THEY VOTED AGAINST THE DEFINITIVE AGREEMENT ANNOUNCED IN MARCH SHAREHOLDERS OF KASLER A HIGHWAY CONSTRUCTION COMPANY WILL VOTE ON THE DEAL JULY 9 WASHINGTON CONTRACTORS IS A MONTANA CONCERN OWNED BY INDUSTRIALIST DENNIS R WASHINGTON WHO HAS AN 83 STAKE IN KASLER AS PART OF THE PROPOSED MERGER KASLER SHAREHOLDERS WOULD EXCHANGE THEIR 10 MILLION SHARES FOR THE SAME NUMBER OF SHARES IN A NEW COMPANY KASLER HOLDING CO MR WASHINGTON HOWEVER WOULD GET 195 MILLION NEW KASLER HOLDING SHARES OR A 66 SHARE OF THE COMBINED COMPANY KASLER SHAREHOLDERS WOULD HAVE 34 SHARES OF KASLER HAVE FALLEN FROM 875 A SHARE JUST BEFORE THE PROPOSAL WAS ANNOUNCED IN EARLY MARCH IN LATE NEW YORK STOCK EXCHANGE TRADING YESTERDAY KASLER SHARES WERE QUOTED AT 7375 UP 125 CENTS A MAJORITY OF THE BOARD HAS RECOMMENDED THAT SHAREHOLDERS APPROVE THE MERGER PROPOSAL SAYING THAT IT WOULD ACHIEVE CERTAIN STRATEGIC BUSINESS OBJECTIVES OF KASLER IT ALSO NOTED THAT TERMS OF THE COMBINATION ARE FAIR TO KASLER SHAREHOLDERS IN THE VIEW OF ITS FINANCIAL ADVISER SEIDLER AMDEC SECURITIES INC THE DISSIDENT DIRECTORS INCLUDE PATRICK A ORTIZ WHOSE WIFE JILL IS THE DAUGHTER OF THE LATE JEFF KASLER WHO RAN THE COMPANY FOR MANY YEARS TOGETHER MR AND MRS ORTIZ AND THE KASLER FAMILY TRUST CONTROL 94 OF THE COMPANY'S TOTAL SHARES THE OTHER TWO DISSIDENTS KAY D JONES AND VINCENT O SMITH ARE FRIENDS OF THE KASLER FAMILY 9306170072 930617 MARKETSCAN FAILURE OF ITS OVEN LOVIN' COOKIE DOUGH SHOWS PILLSBURY PITFALLS OF NEW PRODUCTS BY KATHLEEN DEVENY MINNEAPOLIS WHEN PILLSBURY ROLLED OUT OVEN LOVIN' COOKIE DOUGH IN A RESEALABLE TUB IT LOOKED LIKE ANOTHER SWEET SUCCESS CONSUMERS' RENEWED FOCUS ON THE HOME AS THE CENTER OF FAMILY LIFE HAD HELPED KEEP COOKIEDOUGH SALES RISING AND IN EARLY FOCUS GROUPS CONSUMERS RAVED ABOUT OVEN LOVIN' WHICH WAS LOADED WITH HERSHEY'S CHOCOLATE CHIPS REESE'S PIECES AND BRACH'S CANDIES WITHIN MONTHS OF ITS LAUNCH THE PRODUCT WAS AVAILABLE IN 90 OF SUPERMARKETS AND SALES WERE CLIMBING BUT LESS THAN TWO YEARS LATER EVEN PILLSBURY CONCEDES THE OVEN LOVIN' BRAND HAS CRUMBLED PENNYPINCHING SHOPPERS DIDN'T THINK THE PRODUCT WAS WORTH 20 CENTS MORE THAN THE COMPANY'S CONVENTIONAL TUBE OF DOUGH ESPECIALLY SINCE THE PACKAGE WAS 10 SMALLER WE THOUGHT PEOPLE WOULD PAY A LITTLE MORE FOR IT SAYS H ROBERT HAWTHORNE CHIEF OPERATING OFFICER OF PILLSBURY A UNIT OF GRAND METROPOLITAN PLC BUT IT WAS TOO EXPENSIVE AND NOT MUCH DIFFERENT FROM THE TUBE PRODUCT PILLSBURY'S PREDICAMENT SHOWS HOW EVEN PROMISING NEW PRODUCTS FROM THE MOST POWERFUL MARKETERS OFTEN FALL FLAT IN SOME CASES THE SOCALLED INNOVATIONS ARE TOO SIMILAR TO EXISTING PRODUCTS IN OTHERS COMPANIES PULL MARKETING SUPPORT FROM A FLEDGLING PRODUCT TOO SOON FREQUENTLY FOOD COMPANIES SIMPLY MISJUDGE WHAT CONSUMERS REALLY WANT A COMPLICATED EQUATION THAT BALANCES TASTINESS PRICE AND CONVENIENCE MARKETERS LAUNCH SOME 8000 FOOD PRODUCTS ANNUALLY ACCORDING TO RICHARD LAWRENCE PRESIDENT OF MARKETING INTELLIGENCE INC A NAPLES NY FIRM THAT TRACKS NEW PRODUCTS MORE THAN 80 OF THEM ULTIMATELY FAIL JUST CONSIDER MCDONALD'S CORP'S FALTERING MCLEAN DELUXE OR LA BEER A NOWDEFUNCT LOWALCOHOL BREW FROM ANHEUSERBUSCH COS DESPITE THE PITFALLS THOUGH FOOD MARKETERS SAY NEWPRODUCT DEVELOPMENT IS MORE IMPORTANT THAN EVER TODAY'S GROCERY SHOPPERS NERVOUS ABOUT THE ECONOMY ARE INCREASINGLY TIGHTFISTED MEANWHILE MOUNTING COMPETITION FROM PRIVATELABEL RIVALS HAS MADE IT DIFFICULT FOR MARKETERS OF NATIONAL BRANDS TO RAISE PRICES FOOD COMPANIES ARE NOT GOING TO SEE THE LEVEL OF GROWTH IN THE US THAT WE SAW IN THE 1980S SAYS PAUL S WALSH PILLSBURY'S CHIEF EXECUTIVE OFFICER SENSIBLE COMPANIES HAVE TO INNOVATE FOR PILLSBURY THE PRICE OF INNOVATION HAS SOMETIMES BEEN STEEP THE COMPANY WON'T SAY HOW MUCH IT HAS SUNK INTO OVEN LOVIN' BUT CONCEDES IT SPENT HEAVILY ON TELEVISION ADVERTISING BETWEEN OCTOBER AND DECEMBER OF 1991 BY THE FOLLOWING OCTOBER PILLSBURY HAD CONDUCTED FIVE EXTENSIVE PROMOTIONS INVOLVING PRINT ADS AND SOME 200 MILLION COUPONS ACCORDING TO PROMOTION INFORMATION MANAGEMENT A PROMOTIONTRACKING FIRM IN CHICAGO DATA GATHERED FROM SUPERMARKETS BY CHICAGOBASED INFORMATION RESOURCES INC'S INFOSCAN SERVICE SHOW THAT SOME OF THAT SPENDING PAID OFF BUT ONLY BRIEFLY SALES IN THE FOURWEEK PERIOD ENDED NOV 24 1991 REACHED 55 MILLION BUT DESPITE INCREASED INSTORE MERCHANDISING EFFORTS DURING THE FOLLOWING MONTHS SALES PLUNGED PRECIPITOUSLY DURING THE FOUR WEEKS ENDED AUG 30 1992 SALES WERE 657657 THEY INCHED UP ONLY SLIGHTLY DURING THE FOLLOWING FALL AND WINTER MONTHS THE TIME OF YEAR WHEN MOST COOKIEBAKING OCCURS MORERECENT RESULTS ARE EQUALLY DISAPPOINTING SALES OF OVEN LOVIN' DROPPED 85 TO 714069 DURING THE 13 WEEKS ENDED MAY 9 SALES OF THE COMPANY'S TRADITIONAL PILLSBURY BEST COOKIE DOUGH MEANWHILE JUMPED 32 TO 206 MILLION THANKS TO HEAVY PROMOTIONS SURROUNDING VALENTINE'S DAY AND EASTER WHAT'S MORE ANOTHER NEW PRODUCT FROM PILLSBURY SLICEANDBAKE COOKIE DOUGH WITH FLAVORED CENTERS SHAPED LIKE DINOSAURS AND TEDDY BEARS HAS ECLIPSED OVEN LOVIN' EVEN THOUGH IT HAS ONLY BEEN IN TEST MARKET SINCE JANUARY WHAT WENT WRONG IN PILLSBURY'S TEST KITCHENS THE COMPANY HAD PLENTY OF REASON TO BELIEVE IT WAS ON THE RIGHT TRACK IT HAS BEEN MARKETING REFRIGERATED COOKIE DOUGH SINCE 1957 AND STILL DOMINATES THE 114MILLIONAYEAR BUSINESS AN EARLIER EFFORT TO MAKE ITS TRADITIONAL COOKIE DOUGH SEEM MORE HOMEMADE HAD BEEN A HIT AND PILLSBURY HAD PREVIOUSLY TESTED DOUGH IN PLASTIC TUBS IN BRITAIN AND DECLARED IT A SUCCESS EVEN EARLY TESTING IN THE US INDICATED OVEN LOVIN' WAS A HOT CONCEPT BUT IN ITS EAGERNESS TO BRING OVEN LOVIN' TO MARKET PILLSBURY CUT CORNERS ON MARKETING RESEARCH AFTER GATHERING INFORMATION ON THE CONCEPT BY INTERVIEWING PANELS OF CONSUMERS THE COMPANY SKIPPED TEST MARKETING AND LAUNCHED THE PRODUCT NATIONALLY A COSTSAVING STRATEGY PURSUED BY MORE AND MORE MARKETERS BUT THE RESULT ILLUSTRATES THE VAGARIES OF MARKET RESEARCH CONSUMERS OFTEN FIND IT DIFFICULT TO EVALUATE PRODUCTS BASED ON LIMITED EXPERIENCE MARKETING CONSULTANTS SAY CONSUMERS ARE ALSO INCLINED TO GIVE POSITIVE FEEDBACK AND TEND TO BE ESPECIALLY GENEROUS ABOUT NEW FOODS UNLESS THE PRODUCTS TASTE TRULY WRETCHED BUT WHILE CONSUMERS MAY GIVE A TEST PRODUCT HIGH MARKS IN A CONTROLLED ENVIRONMENT THAT DOESN'T NECESSARILY MEAN THEY WOULD DROP THE SAME PRODUCT INTO THEIR SHOPPING CARTS IF THEY HAD TO PAY FOR IT THEMSELVES PEOPLE TRY TO BE HELPFUL AND TYPICALLY DON'T LIKE TO CRITICIZE THE PRODUCT THEY'RE TESTING SAYS RICHARD REISER CHAIRMAN OF BAI A MARKETING RESEARCH FIRM IN TARRYTOWN NY INDEED CONSUMERS SAID THEY LIKED THE OVEN LOVIN' RESEALABLE TUBS AT HOME HOWEVER MANY SHOPPERS FOUND THEY ENDED UP BAKING THE ENTIRE PACKAGE AT ONCE OR GOBBLING UP LEFTOVER DOUGH RAW INSTEAD OF SAVING IT ELIMINATING THE NEED FOR THE PRICIER PACKAGING THE PACKAGE PROVIDED A BENEFIT CONSUMERS DIDN'T REALLY NEED SAYS ROBERT MCMATH DIRECTOR OF THE NEW PRODUCTS SHOWCASE AND LEARNING CENTER IN ITHACA NY THEY SHOULD HAVE ASKED HOW MANY COOKIES PEOPLE USUALLY MAKE AT ONE TIME AND ALTHOUGH OVEN LOVIN' MAY FILL A NEED FOR SMALL FAMILIES AND SINGLE CONSUMERS THOSE SHOPPERS DON'T BAKE COOKIES VERY OFTEN MOST COOKIEDOUGH BUYERS ARE FAMILIES WITH YOUNG CHILDREN A GROUP OF CONSUMERS THAT ARE OFTEN ON TIGHT BUDGETS WHAT'S MORE A TUB OF OVEN LOVIN' CONTAINS ONLY 18 OUNCES OF DOUGH COMPARED WITH 20 OUNCES IN A TUBE OF PILLSBURY BEST DOUGH WE'D LIKE TO BELIEVE WE KNOW A LOT ABOUT THE COOKIEDOUGH CATEGORY SAYS CRAIG EVANICH VICE PRESIDENT OF PILLSBURY BRANDS BUT IT TURNED OUT THAT OVEN LOVIN' WAS A VERY BIG DEAL TO A VERY SMALL NUMBER OF CONSUMERS PILLSBURY SAYS IT HASN'T SCRAPPED OVEN LOVIN' ALTHOUGH THE REMAINING CHOCOLATECHIP VARIETY IS AVAILABLE IN ONLY ABOUT ONETHIRD OF US SUPERMARKETS FOR NOW THE COMPANY IS STEPPING UP SUPPORT OF ITS CORE PILLSBURY BEST LINE AND SPINNING OUT NEW FLAVORS COMING SOON TO RETAILERS SHELVES AN OATMEAL COOKIE AND A BROWNIE PRODUCT EACH IN A TUBE HAVING LEARNED ITS LESSON FROM OVEN LOVIN' PILLSBURY ALSO IS TEST MARKETING THE NEW DOUGH WITH CONTRASTING ANIMAL SHAPES IN THE MIDDLE CHOCOLATE COOKIES STUFFED WITH PEANUTBUTTER DINOSAURS AND BROWNSUGAR COOKIES WITH CHOCOLATE TEDDYBEAR CENTERS AIMED AT YOUNGER CHILDREN THE SLICEANDBAKE PRODUCTS COME PACKED IN RIGID TUBES WITH BRIGHT RED PURPLE AND GREEN LETTERS TO APPEAL TO YOUNG CHEFS THE LOG OF DOUGH IS NOTCHED FOR EASIER SLICING GIVEN THE PERILS ANY NEW PRODUCT FACES IT IS FAR TOO EARLY TO CALL THESE NEW COOKIES A SUCCESS BUT WHILE PILLSBURY IS PROCEEDING MORE CAUTIOUSLY THIS TIME IT SAYS THE PRODUCT IS OFF TO A STRONG START THE COMPANY HAS ALREADY RECEIVED MORE COMPLIMENTS FROM CONSUMERS VIA ITS TOLLFREE CUSTOMERSERVICE NUMBER THAN FOR ANY OTHER RECENT BAKED GOODS ALTHOUGH THE CENTERSHAPE COOKIES ALSO COST ABOUT 20 CENTS MORE THAN THE TRADITIONAL TUBE PRODUCT PILLSBURY IS BETTING CONSUMERS WILL PAY EXTRA FOR A UNIQUE PRODUCT IN THE END SAYS MR HAWTHORNE THE COMPANY WITH THE MOST NEW PRODUCTS WINS PILLSBURY'S OVEN LOVIN' REFRIGERATED COOKIE DOUGH SEEMED LIKE A HIT BUT SALES QUICKLY SHRIVELED NOW ITS TRADITIONAL PILLSBURY BEST PRODUCT IS GROWING QUICKLY AND THE COMPANY IS OPTIMISTIC ABOUT A NEW DINOSAURS PRODUCT 9306170071 930617 LAW PLAINTIFFS SAY DENNY'S ALLEGEDLY VIOLATED CONSENT AGREEMENT WASHINGTON PLAINTIFFS SUING DENNY'S INC ALLEGED THAT THE RESTAURANT CHAIN CONTINUES TO DISCRIMINATE AGAINST BLACK CUSTOMERS DESPITE AN APRIL 1 ANTIDISCRIMINATORY CONSENT AGREEMENT IT SIGNED WITH THE JUSTICE DEPARTMENT ATTORNEY JOHN P RELMAN WHO REPRESENTS SIX US SECRET SERVICE UNIFORMED DIVISION AGENTS IN A FEDERALCOURT SUIT FILED IN BALTIMORE LAST MONTH SUBMITTED A FRIEND OF THE COURT BRIEF THAT SUPPORTS PLAINTIFFS IN A SEPARATE CASE AGAINST DENNY'S IN SAN JOSE CALIF STATEMENTS INCLUDED IN THE BRIEF ALLEGE DENNY'S HAS ENGAGED IN NINE SEPARATE INCIDENTS OF DISCRIMINATION THAT VIOLATE THE CONSENT DECREE SEPARATELY THE PARENT COMPANY OF DENNY'S FILED A MOTION TO DISMISS THE SAN JOSE CASE WHICH INVOLVES 32 BLACK PATRONS ON THE GROUND THAT THE FEDERAL CONSENT DECREE PROVIDES AN ADEQUATE REMEDY TO PLAINTIFFS THE MOTION IS SET TO BE HEARD JUNE 25 THE PARENT COMPANY AT YESTERDAY'S ANNUAL MEETING IN SPARTANBURG SC APPROVED CHANGING ITS NAME TO FLAGSTAR COS FROM TW HOLDINGS INC MR RELMAN IN THE FRIEND OF THE COURT BRIEF ALLEGES THAT DENNY'S HAS ENGAGED IN THE NINE ACTS OF DISCRIMINATION ACROSS FLORIDA NORTH CAROLINA VIRGINIA AND MARYLAND AT EIGHT DIFFERENT RESTAURANTS BOTH THE EAST COAST CASE HANDLED BY MR RELMAN AND THE SAN JOSE CASE COULD BE DISMISSED OR HURT IF THE FEDERAL JUDGE IN SAN JOSE DETERMINES DENNY'S HAS STOPPED DISCRIMINATING AS A RESULT OF THE FEDERAL CONSENT DECREE DENNY'S DID NOT RETURN CALLS FOR COMMENT ON THE NEW ALLEGATIONS 9306170070 930617 BUSINESS BRIEF PIER 1 IMPORTS INC SPECIALTY RETAILER'S EARNINGS DECLINED 42 IN 1ST PERIOD PIER 1 IMPORTS INC PLAGUED BY BAD WEATHER AND A SLUMPING CALIFORNIA ECONOMY POSTED A 42 DECLINE IN EARNINGS FOR THE FIRST QUARTER ENDED MAY 29 THE FORT WORTH TEXAS SPECIALTY RETAILER RECORDED NET INCOME OF 47 MILLION OR 12 CENTS A SHARE DOWN FROM 81 MILLION OR 22 CENTS A SHARE A YEAR AGO THE COMPANY HAD PROJECTED A MORE MODEST DECLINE IN EARNINGS TO 14 CENTS TO 16 CENTS A SHARE SALES ROSE 43 IN THE PERIOD TO 1586 MILLION FROM 1521 MILLION THE COMPANY NOTED THAT THE YEARAGO QUARTER INCLUDED NET OF THREE CENTS A SHARE FROM ITS 495 STAKE IN SUNBELT NURSERY GROUP WHICH WAS SOLD EARLIER THIS YEAR CLARK A JOHNSON CHAIRMAN AND CHIEF EXECUTIVE OFFICER BLAMED THE EARNINGS SLUMP ON EXTREME WEATHER PATTERNS THROUGHOUT THE COUNTRY SLOWER SALES IN THE COMPANY'S 86 CALIFORNIA STORES AND DISAPPOINTING SALES IN THE COMPANY'S CLOTHING LINE IN THE MARCH AND APRIL PERIOD 9306170069 930617 BUSINESS BRIEF CALVIN KLEIN INC FIRM BUYS BACK 55 MILLION OF JUNK DEBT FROM GEFFEN CALVIN KLEIN INC SAID THAT IT BOUGHT BACK 55 MILLION OF ITS JUNK BOND DEBT FROM HOLLYWOOD MOGUL DAVID GEFFEN THE NEW YORK FASHION HOUSE TOOK ADVANTAGE OF LOWER INTEREST RATES AND REFINANCED THE NOTES BY ISSUING 58 MILLION OF SENIOR SECURED NONRECOURSE NOTES TO CITIBANK A UNIT OF CITICORP LAST YEAR MR GEFFEN A LONGTIME FRIEND OF FASHION DESIGNER CALVIN KLEIN SAID HE BOUGHT THE CLOSELY HELD COMPANY'S JUNK BOND DEBT AND WAIVED REPAYMENT OF THE PRINCIPAL FOR SEVERAL YEARS GIVING THE COMPANY SOME BREATHING ROOM DURING A DIFFICULT PERIOD THE COMPANY WAS HAVING TROUBLE MEETING DEBT PAYMENTS DUE TO SETBACKS IN ITS BASIC SPORTSWEAR BUSINESS WHICH IN 1990 ACCOUNTED FOR ABOUT 80 OF ITS ANNUAL SALES OF ABOUT 200 MILLION A COMPANY SPOKESMAN SAID THE REFINANCING WILL REDUCE CALVIN KLEIN INC'S ANNUAL INTEREST PAYMENTS ON THE DEBT TO ABOUT 37 MILLION DOWN 56 FROM 84 MILLION THE IMPROVED CASH FLOW BROUGHT ABOUT BY THIS NEW REFINANCING WILL STRENGTHEN OUR ABILITY TO MEET CURRENT OBLIGATIONS AND PURSUE GROWTH OPPORTUNITIES MR KLEIN SAID IN A STATEMENT 9306170068 930617 POLITICS & POLICY COMPROMISE BY DEMOCRATS CLEARS WAY FOR VOTE ON CAMPAIGNFINANCE REFORM BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE DEMOCRATIC LEADERS FINALLY BROKE A GOP FILIBUSTER AGAINST CAMPAIGNFINANCE LEGISLATION BY WATERING DOWN ITS PUBLICFINANCING PROVISIONS AND LURING A HANDFUL OF REPUBLICAN MODERATES THE BREAKTHROUGH WHICH CLEARS THE WAY FOR PASSAGE OF THE MEASURE TODAY FOLLOWED A FINAL FRENZY OF NEGOTIATIONS AIMED AT SALVAGING A CENTERPIECE OF PRESIDENT CLINTON'S POLITICAL AGENDA A BIPARTISAN COMPROMISE ON PUBLIC FINANCING CRAFTED BY SENS JAMES EXON D NEB AND DAVE DURENBERGER R MINN PASSED BY A 5247 MARGIN ONLY AFTER SEVERAL DEMOCRATS WHO INITIALLY OPPOSED THE LEGISLATION SWITCHED THEIR VOTES SUBSEQUENTLY THE SENATE VOTED 6237 TO LIMIT DEBATE SENATE MAJORITY LEADER GEORGE MITCHELL WHO HAD THREATENED TO ABANDON THE BILL IF THE FILIBUSTER WASN'T BROKEN YESTERDAY CALLED THE ACTION A MAJOR STEP TOWARD COMPREHENSIVE REFORM OF THE ELECTORAL SYSTEM AND AFTER SPENDING RECENT DAYS BLASTING REPUBLICAN OBSTRUCTIONISM MR CLINTON PRAISED THE VOTE AS A BREAKTHROUGH IN THE FIGHT TO GIVE THE GOVERNMENT BACK TO THE AMERICAN PEOPLE AS PROPOSED BY THE ADMINISTRATION CAMPAIGNFINANCE LEGISLATION WOULD ESTABLISH VOLUNTARY LIMITS ON CAMPAIGN SPENDING OF 600000 FOR HOUSE CANDIDATES AND FROM 2 MILLION TO 825 MILLION FOR SENATE CANDIDATES DEPENDING ON THE SIZE OF THE STATE THE INITIAL PUBLICFINANCING PROVISION WOULD HAVE USED TAXPAYER MONEY TO PROVIDE COMPLYING CANDIDATES WITH UP TO 25 OF THE LIMITS IN THE FORM OF VOUCHERS THAT COULD BE USED TO PAY FOR ADVERTISING AND POSTAGE UNDER YESTERDAY'S COMPROMISE PUBLIC MONEY WOULD BE GIVEN ONLY TO CANDIDATES WHOSE OPPONENTS EXCEED THE LIMITS THE SUBSIDIES WOULD BE FINANCED BY A NEW TAX OF ABOUT 30 ON CAMPAIGNS THAT EXCEED THE LIMITS AND BY REPEAL OF THE CURRENT TAX DEDUCTION FOR LOBBYING EXPENSES THE SUBSIDIES COULD REACH UP TO 100 OF THE LIMITS FOR A CANDIDATE WHOSE OPPONENT DRASTICALLY EXCEEDED THE PRESCRIBED CEILING MR DURENBERGER CONTENDS THAT THE CONSEQUENCES OF EXCEEDING THE LIMITSBOTH THE TAX LEVIED ON AN OFFENDING CANDIDATE AND THE SUBSIDY TO THAT CANDIDATE'S OPPONENT ARE SO SEVERE THAT PUBLIC MONEY WON'T LIKELY BE NECESSARY THE ELIMINATION OF AUTOMATIC PUBLIC FINANCING FOR COMPLYING CANDIDATES WAS A BLOW TO PUBLIC INTEREST ADVOCATES WHO ARGUED THAT SUCH CLEAN MONEY WAS A KEY TO REFORM GENE KARPINSKI EXECUTIVE DIRECTOR OF THE US PUBLIC INTEREST RESEARCH GROUP COMPLAINED IT TURNED THE BILL INTO AN INCUMBENT PROTECTION ACT MASQUERADING AS REFORM BUT COMMON CAUSE PRESIDENT FRED WERTHEIMER WHILE ACKNOWLEDGING THAT HE WAS DISAPPOINTED POINTED TO OTHER FUNDAMENTAL REFORMS IN THE MEASURE AND SAID THAT IT'S ESSENTIAL THAT THE LEGISLATION MOVE FORWARD EVEN WITHOUT DIRECT PUBLIC MONEY THE BILL'S SPENDING LIMITS WOULD ASSIST CHALLENGERS BY CURBING THE IMMENSE FUNDRAISING ADVANTAGE ENJOYED BY INCUMBENTS THE LEGISLATION WOULD ALSO ENTITLE COMPLYING CANDIDATES TO POSTAGE AND TELEVISION ADVERTISING DISCOUNTS AFTER THEY HAVE RAISED 5 OF THE SPENDING LIMIT IN AMOUNTS OF 250 OR LESS FROM INSTATE CONTRIBUTORS BUT WHILE THE COMPROMISE IS EXPECTED TO PASS ITS ULTIMATE FATE REMAINS UNCLEAR PUBLIC FINANCING IS STILL CONTROVERSIAL IN THE HOUSE WHERE DEMOCRATS GENERALLY ARE UNEASY ABOUT CHANGING A SYSTEM THAT HAS PRESERVED THEIR MAJORITY FOR DECADES MOREOVER THE SENATE VERSION IS CERTAIN TO BE CHANGED IN WHAT PROMISES TO BE DIFFICULT CONFERENCE COMMITTEE NEGOTIATIONS THE SENATE BILL FOR EXAMPLE WOULD BAN CONTRIBUTIONS FROM POLITICAL ACTION COMMITTEES SOMETHING HOUSE DEMOCRATS VIGOROUSLY OBJECT TO AT MINIMUM THE AGREEMENT PREVENTED A PREMATURE DEATH FOR CAMPAIGN REFORM WHICH HAS EMERGED AS A POWERFUL THEME SINCE THE 1992 CAMPAIGN UNDER PRESSURE FROM SUCH DISPARATE VOICES AS MR CLINTON ROSS PEROT CITIZENS' LOBBY GROUPS AND NEWSPAPER EDITORIALISTS AND IT PERMITTED MR MITCHELL TO OBTAIN TWO VOTES MORE THAN HE NEEDED TO BREAK THE FILIBUSTER SEVEN REPUBLICANS JOINED THE DEMOCRATS EXCEPT FOR RENEGADE SEN RICHARD SHELBY D ALA IN VOTING TO MOVE AHEAD TO A FINAL VOTE THEY WERE SENS JOHN CHAFEE R RI WILLIAM COHEN R MAINE JAMES JEFFORDS R VT NANCY KASSEBAUM R KAN JOHN MCCAIN R ARIZ LARRY PRESSLER R SD AND MR DURENBERGER A MAJOR HURDLE HAS BEEN REMOVED MR MITCHELL SAID LATER BUT A LEADING REPUBLICAN OPPONENT SEN MITCH MCCONNELL OF KENTUCKY PREDICTED THE COMPROMISE WOULD BE STRUCK DOWN IN COURT AS AN UNCONSTITUTIONAL VIOLATION OF FREE SPEECH 9306170067 930617 BUSINESS BRIEF NORTHEAST UTILITIES STATE APPROVES RATE INCREASE FOR CONNECTICUT UTILITY UNIT NORTHEAST UTILITIES HARTFORD CONN SAID THE CONNECTICUT DEPARTMENT OF PUBLIC UTILITY CONTROL GRANTED A 1413 MILLION OR 62 RATE INCREASE OVER THREE YEARS FOR ITS CONNECTICUT LIGHT & POWER CO UNIT THE ORDER REPRESENTED LESS THAN HALF OF THE UTILITY'S ORIGINAL INCREASE REQUEST OF 358 MILLION OVER THREE YEARS THE INCREASE WILL RAISE RESIDENTIAL CUSTOMER CHARGES BY ABOUT 27 PERCENT IN EACH OF THE NEXT THREE YEARS THE COMPANY SAID INTERMEDIATE AND LARGE MANUFACTURING CUSTOMERS WILL PAY 11 MORE ANNUALLY OVER THE SAME PERIOD THE RULING ALSO AUTHORIZES A RETURN ON EQUITY OF 115 IN THE FIRST YEAR 116 IN THE SECOND YEAR AND 117 IN THE THIRD YEAR THE UTILITY SAID THE UTILITY HAD REQUESTED 129 ITS CURRENTLY APPROVED LEVEL WILLIAM B ELLIS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF NORTHEAST UTILITIES SAID THE COMPANY IS DISAPPOINTED IT DID NOT RECEIVE ITS FULL REQUEST 9306170066 930617 INTERNATIONAL INDIA'S LEADER DENIES PAYMENT FROM BROKER BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI JUST AS HE SEEMED TO BE EMERGING FROM THE EFFECTS OF A SPATE OF BLOODY COMMUNAL VIOLENCE IN INDIA PRIME MINISTER PV NARASIMHA RAO WAS CONFRONTED WITH ANOTHER CHALLENGE TO HIS PREMIERSHIP THE NEW THREAT COMES IN THE FORM OF SENSATIONAL ALLEGATIONS BY A CENTRAL FIGURE IN INDIA'S 128 BILLION SECURITIES SCANDAL WHO SAYS HE GAVE 10 MILLION RUPEES 320000 TO MR RAO FOR HIS ELECTION CAMPAIGN IN NOVEMBER 1991 SUCH A DONATION WOULD BE ILLEGAL UNDER INDIAN LAW AND THE PRIME MINISTER QUICKLY AND VEHEMENTLY DENIED THE ALLEGATION HARSHAD MEHTA A FLAMBOYANT STOCKBROKER CHARGED WITH ILLEGALLY DIVERTING FUNDS FROM THE BANKING SYSTEM INTO THE STOCK MARKET FUELING AN UNPRECEDENTED BULL RUN IN EARLY 1992 SAID AT A NEWS CONFERENCE IN BOMBAY THAT THE MONEY WAS PAID TO MR RAO'S AIDES IN HIS OFFICIAL RESIDENCE IN TWO INSTALLMENTS OF 67 MILLION RUPEES AND 33 MILLION RUPEES ON NOV 4 AND 5 1991 DAYS BEFORE THE PRIME MINISTER WAS ELECTED TO PARLIAMENT THIS WASN'T A BRIBE MR MEHTA SAID BUT A CONTRIBUTION TO SEEK THE PRIME MINISTER'S PATRONAGE AND BLESSINGS MR RAO JUST BACK FROM AN OFFICIAL VISIT TO OMAN WENT ON NATIONAL TELEVISION TO DENY STRONGLY THAT HE HAD ACCEPTED ANY MONEY FROM THE BROKER HE THEN ISSUED A STATEMENT DESCRIBING MR MEHTA'S ALLEGATIONS AS MALICIOUS AND UNFOUNDED AND MADEUP MR RAO WAS EMPHATIC I HAVE NOT GOT ANY MONEY FROM HARSHAD MEHTA I DENY THE ALLEGATIONS MADE ELECTION CONTRIBUTIONS OF THE KIND MR MEHTA SAYS HE MADE ARE ILLEGAL IN INDIA THOUGH FOR MOST POLITICAL PARTIES THEY REMAIN THE MAIN FORM OF ELECTION FUNDING INDIVIDUAL CANDIDATES ARE LIMITED BY LAW AS TO HOW MUCH THEY CAN SPEND BUT PARTIES ARE FREE TO DISTRIBUTE UNLIMITED FUNDS FROM THEIR OWN SOURCES MR MEHTA SAYS HIS CONTRIBUTION WAS INDIVIDUAL NOT PARTYRELATED MR RAO WASN'T A MEMBER OF PARLIAMENT WHEN HE BECAME PRIME MINISTER IN JUNE 1991 BECAUSE WITH RAJIV GANDHI AT THE CONGRESS PARTY'S HELM HE HAD EXPECTED TO CONCENTRATE ON PARTY WORK MR GANDHI'S ASSASSINATION DURING THE ELECTION ON MAY 21 LED TO MR RAO'S ELEVATION AND THE LAW REQUIRED HIM TO SEEK ELECTION TO PARLIAMENT WITHIN SIX MONTHS FOLLOWING MR MEHTA'S ALLEGATIONS THE OPPOSITION PARTIES HAVE CALLED FOR MR RAO TO RESIGN BUT THAT IS UNLIKELY AND THE USUALLY FACTIONRIDDEN RULING PARTY SEEMS FOR THE MOMENT TO HAVE RALLIED AROUND ITS LEADER CABINET MINISTERS AND CHIEF MINISTERS FROM THE STATES ARE RUSHING TO THE CAPITAL IN A SHOW OF SOLIDARITY SEVERAL CONGRESS FUNCTIONARIES AND LEGISLATORS DECRIED MR MEHTA'S STATEMENT AS COMING FROM A MAN CHARGED WITH SERIOUS OFFENSES AND LACKING IN CREDIBILITY PARTY MEMBERS ALSO MAINTAIN THAT THERE ARE PROPER FORUMS AT WHICH SUCH INFORMATION COULD BE PLACED SUCH AS THE POLICE OR A PARLIAMENTARY COMMITTEE THAT FOR NINE MONTHS HAS BEEN INVESTIGATING THE SECURITIES SCANDAL AND HAS TWICE SUMMONED MR MEHTA AS A WITNESS THE PARTY IS ALSO TRYING TO PORTRAY MR MEHTA AS A MAN WHO IS PLAYING POLITICS TO AVOID PROSECUTION IN SEVERAL CASES IN WHICH HE IS IMPLICATED HE IS CHARGED WITH BRIBERY FRAUD AND VIOLATIONS OF THE COUNTRY'S CURRENCY REGULATIONS 9306170065 930617 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 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 311 30 TO 59 DAYS 313 60 TO 119 DAYS 319 120 TO 149 DAYS 322 150 TO 179 DAYS 318 180 TO 229 DAYS 338 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 317 30 DAYS 320 60 DAYS 323 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 270 THREE MONTHS 285 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 3125 ONE MONTH 318 THREE MONTHS 333 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 307 60 DAYS 309 90 DAYS 314 120 DAYS 317 150 DAYS 321 180 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 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 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 FIXEDRATE MORTGAGES 510 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 9306170064 930617 INTERNATIONAL BRITAIN ORDERS GOLDMAN SACHS TO PAY A PENALTY FINANCIALREPORTING LAPSES EMERGE IN INVESTIGATION OF MAXWELL STOCK TRADES BY MICHAEL SICONOLFI AND NICHOLAS BRAY STAFF REPORTERS OF THE WALL STREET JOURNAL A BRITISH REGULATOR ORDERED GOLDMAN SACHS & CO TO PAY ABOUT 432000 FOR FINANCIALREPORTING BREACHES DISCOVERED IN AN INVESTIGATION OF TRADING IN MAXWELL COMMUNICATION CORP SHARES THE FINE BY BRITAIN'S SECURITIES AND FUTURES AUTHORITY IS THE FIRST PENALTY ARISING FROM THE MAXWELL INQUIRY REGULATORS IN THE UNITED KINGDOM AND THE US HAVE BEEN TRYING TO DETERMINE WHETHER GOLDMAN THROUGH REPEATED PURCHASES OF MILLIONS OF SHARES OF MAXWELL COMMUNICATION HELPED ROBERT MAXWELL TO ILLEGALLY PROP UP THE COMPANY'S STOCK PRICE THE BRITISH REGULATOR FOUND THAT GOLDMAN'S UK EQUITY UNIT HADN'T PARTICIPATED IN ILLICIT CONDUCT BUT THE SFA SAID THE GOLDMAN UNIT VIOLATED FINANCIALREPORTING REQUIREMENTS ON THREE TRADES WITH COMPANIES HAVING TIES TO MR MAXWELL WHO DIED IN 1991 THE VIOLATIONS INVOLVED GOLDMAN'S PAYING FOR SECURITIES BUT NOT IMMEDIATELY TAKING DELIVERY EFFECTIVELY GIVING THE COUNTERPARTIES A FREE PAYMENT DESPITE THE FINE GOLDMAN TRIED TO DISTANCE ITSELF FROM THE MAXWELL MATTER THE REGULATORY GLITCHES HAVE NOTHING TO DO WITH ROBERT MAXWELL SAID GREGORY PALM A GOLDMAN PARTNER AND COGENERAL COUNSEL THEY REALLY AREN'T MAXWELLRELATED HE SAID THEY WERE BACKOFFICE ACCOUNTING AND COMPUTATIONAL ERRORS THAT HAD NOTHING TO DO WITH WHO WAS ON THE OTHER SIDE OF THE TRADE HE ADDED IN ANY TRANSACTION OF THE SAME TYPE THE SAME PROBLEM COULD HAVE ARISEN THE SFA FINED GOLDMAN THE EQUIVALENT OF 242500 AND ORDERED THE FIRM TO PAY 189000 IN LEGAL COSTS THE FINE THE FIRST IMPOSED ON GOLDMAN IN THE UK STEMMED FROM AN INVESTIGATION BEGUN BY THE SFA IN NOVEMBER YET THE SFA SAID THAT IT RECOGNIZES THAT THERE WAS NO INJURY TO THE INVESTING PUBLIC OR ANY CUSTOMER OR COUNTERPARTY RESULTING FROM THE RULE BREACHES THE SFA SAID GOLDMAN DID NOT BENEFIT FROM THE BREACHES THESE INCLUDED PAYING THE FULL PURCHASE PRICE FOR A PORTFOLIO OF 135 SECURITIES FROM LONDON AND BISHOPSGATE INTERNATIONAL INVESTMENT MANAGEMENT IN JULY 1990 THAT WASN'T DELIVERED UNTIL A WEEK LATER THE TWO OTHER IMPROPER TRADES INVOLVED SIMILAR VIOLATIONS IN AUGUST 1990 AND JULY 1991 INVOLVING BISHOPSGATE INVESTMENT MANAGEMENT LTD AND BISHOPSGATE INVESTMENT TRUST PLC RESPECTIVELY THE SFA SAID GOLDMAN'S MR PALM SAID THE INVESTMENT BANK HAS MODIFIED AND IMPROVED OUR SYSTEMS AND IS SATISFIED THAT PROBLEMS OF THIS TYPE WILL NOT ARISE IN THE FUTURE A YEAR AGO THE LONDON STOCK EXCHANGE EXONERATED GOLDMAN OF ALLEGATIONS THAT THE INVESTMENT BANK MANIPULATED MAXWELL COMMUNICATION SHARES BUT THE US SECURITIES AND EXCHANGE COMMISSION STILL IS EXAMINING ALLEGATIONS OF AN ILLEGAL SHARESUPPORT SCHEME INVOLVING THE CRUMBLING MAXWELL EMPIRE GOLDMAN HAD TWO PUT OPTIONS INVOLVING MAXWELL SHARES THAT CAME UNDER SCRUTINY FOLLOWING THE DEATH OF MR MAXWELL THE COMPANY'S FOUNDER AND SUBSEQUENT ALLEGATIONS THAT HE WAS INVOLVED IN ILLEGALLY SUPPORTING THE STOCK GOLDMAN HAS SAID THAT THE OPTIONS WERE HELD AS PART OF ITS MARKETMAKING OPERATIONS GOLDMAN BECAME A BIG BUYER OF MAXWELL COMMUNICATION SHARES IN EARLY 1990 IN SEVERAL TRADES A GOLDMAN PARTNER ARRANGED TO SELL BIG BLOCKS OF MAXWELL COMMUNICATION SHARES TO MR MAXWELL THOSE TRADES ESTABLISHED A PATTERN SUGGESTING THAT GOLDMAN REPEATEDLY BOUGHT BIG BLOCKS OF MAXWELL COMMUNICATION SHARES BELIEVING THAT MR MAXWELL WOULD BE AN EAGER BUYER FOR THEM 9306170063 930617 MARKETING & MEDIA PARAMOUNT TO BUY DETROIT TV STATION FOR UNSTATED PRICE BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PARAMOUNT COMMUNICATIONS INC EXPANDING ITS POSITION IN BROADCASTING AND PROGRAM DISTRIBUTION AGREED TO ACQUIRE THE TOPRATED INDEPENDENT STATION IN DETROIT FROM COX ENTERPRISES INC PARAMOUNT DECLINED TO DISCLOSE FINANCIAL TERMS OF THE PURCHASE OF WKBDTV AN AFFILIATE OF NEWS CORP'S FOX BROADCASTING INC BUT PEOPLE FAMILIAR WITH THE TRANSACTION SAID THE PRICE WAS ROUGHLY 100 MILLION ANALYSTS ESTIMATED THAT THE FIGURE WOULD REFLECT A MULTIPLE OF ROUGHLY 8 TO 9 TIMES THE STATION'S CASH FLOW OR AN INDICATED 11 MILLION TO 12 MILLION ANNUAL CASH FLOW THE PROPOSED ACQUISITION FURTHER BOLSTERS PARAMOUNT'S STRATEGY OF VERTICAL INTEGRATION BY EXPANDING TO SEVEN FROM SIX THE BROADCASTING OUTLETS IT OWNS PARAMOUNT ALSO PRODUCES SYNDICATED TV PROGRAMMING SUCH AS STAR TREK THE NEXT GENERATION AND ENTERTAINMENT TONIGHT AT ITS PARAMOUNT PICTURES CORP UNIT AS WELL AS NETWORK TELEVISION SERIES THE STUDIO HAS OFTEN BEEN THE SUBJECT OF SPECULATION THAT IT MIGHT START SOME KIND OF BROADCAST PROGRAM NETWORK WITH THE ADDITION OF THE DETROIT STATION THE PARAMOUNT STATIONS GROUP WILL REACH 12 OF TELEVISION HOUSEHOLDS UP FROM THE CURRENT 10 UNDER CURRENT FEDERAL REGULATIONS A STATION GROUP OWNER MAY OWN STATIONS REACHING 25 OF HOUSEHOLDS AND PARAMOUNT INDICATED FURTHER EXPANSION IS LIKELY CALLING YESTERDAY'S PROPOSED ACQUISITION PART OF AN ONGOING PROGRAM THE LARGER THE STATION GROUP THE LARGER THE GUARANTEED DISTRIBUTION FOR THEIR PRODUCT SAID ANALYST JESSICA REIF OF OPPENHEIMER & CO IT GIVES THE PROGRAM SYNDICATION DIVISION A LOT OF POWER YOUR PROGRAMMING HAS A GUARANTEE THAT IT WILL GET LAUNCHED IF YOU OWN THE STATIONS ANALYST LISBETH BARRON OF SG WARBURG & CO NOTED THAT PARAMOUNT WITH THE PROPOSED PURCHASE WILL INCREASE ITS ECONOMY OF SCALE IF YOU ARE GOING TO BE IN THE BUSINESS YOU SHOULD HAVE THE LARGEST NUMBER OF STATIONS SO AS TO SPREAD THE COST OVER A WIDER BASE OF ASSETS PARAMOUNT SAID THE DETROIT STATION IS THE MARKET LEADER IN SPORTS PROGRAMMING AND HAS BROADCAST RIGHTS TO THE DETROIT RED WINGS HOCKEY FRANCHISE THE DETROIT PISTONS BASKETBALL TEAM AND THE PRESEASON DETROIT LIONS FOOTBALL GAMES THE STATION'S 10 PM NIGHTLY NEWSCAST RANKS NO 4 AMONG ALL PRIMETIME INDEPENDENT NEWSCASTS IN THE COUNTRY PARAMOUNT OWNS STATIONS IN PHILADELPHIA RALEIGH/DURHAM NC SAN ANTONIO WASHINGTON DALLAS AND HOUSTON 9306170061 930617 ABREAST OF THE MARKET STOCKS JUMP AFTER WILD TRADING TIED TO PROGRAMS TRIPLEWITCHING BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FUTURESRELATED BUY PROGRAMS AND POSITIONING AHEAD OF TOMORROW'S TRIPLEWITCHING EXPIRATIONS LEFT STOCKS SHARPLY HIGHER AT THE END OF A WILD AFTERNOON YESTERDAY THE PLACID TRADING THAT HAD DOMINATED THE EARLY PART OF THE DAY WAS SHATTERED AROUND MIDAFTERNOON FIRST BY A BURST OF HEAVY SELLING AND THEN LATER BY WAVES OF BUYING PRICES WERE SENT LOWER BY NEWS REPORTS THAT SENATE DEMOCRATS WERE CONSIDERING A SURTAX ON CAPITAL GAINS AS PART OF THEIR PLAN TO TRIM THE FEDERAL BUDGET DEFICIT THE DOW JONES INDUSTRIAL AVERAGE QUICKLY SKIDDED FROM LITTLE CHANGED TO DOWN 15 AFTER THE NEWS AT AROUND 2 PM EDT STOCKS RECOVERED MORE THAN HALF OF TAXRELATED LOSSES OVER THE NEXT HOUR BEFORE ROCKETING IN THE FINAL 30 MINUTES OF THE SESSION THE DOW JONES INDUSTRIAL AVERAGE JUMPED 25 POINTS OVER THAT PERIOD TO CLOSE WITH A GAIN OF 1965 OR 056 TO 351165 ON THE NEW YORK STOCK EXCHANGE THERE WERE 984 ISSUES ADVANCING AND 897 DECLINING NYSE VOLUME TOTALED 26447000 SHARES COMPARED WITH 226900000 TUESDAY THE STANDARD & POOR'S 500 STOCK INDEX ROSE 116 OR 026 TO 44743 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADVANCED 068 OR 028 TO 24660 AND THE DOW JONES EQUITY MARKET INDEX GAINED 106 OR 025 TO 42398 MICHAEL BIRCH AN INDEX ARBITRAGER AT KIDDER PEABODY & CO SAID FUTURESRELATED BUY PROGRAMS PLAYED A LARGE ROLE IN THE LATE SURGE BUT HE SAID PORTFOLIO MANAGERS WERE ALSO ACTIVE BUYERS ADDING TO THEIR POSITIONS STOCKINDEX FUTURES JUMPED TO LEVELS THAT ALLOWED THE PROGRAMS ON A COMBINATION OF FACTORS TRADERS SAID SOME OF THE TRADING WAS RELATED TO HEDGING STRATEGIES TIED TO THE QUARTERLY EXPIRATIONS OTHER BUYING WAS SAID TO HAVE COME FROM FUTURES TRADERS UNDOING THE SHORT POSITIONS CREATED DURING THE CAPITALGAINS TAX COMMOTION IT'S BEEN ONE OF THOSE SEESAW BATTLES SAID TIM HEEKIN HEAD OF BLOCK TRADING AT SALOMON BROTHERS HE TIED MUCH OF THE ACTION TO THE TRIPLEWITCHING WHEN STOCKINDEX FUTURES AND OPTIONS AND OPTIONS ON INDIVIDUAL STOCKS EXPIRE THE DERIVATIVES JOCKEYS HAVE THEIR HELMETS ON HE SAID OUTSIDE OF THE TAX NEWS AND A HANDFUL OF ECONOMIC REPORTS TRADERS SAID THERE WAS LITTLE NEWS TO AFFECT THE MARKET THEY EVEN PLAYED DOWN THE IMPORTANCE OF THE GOVERNMENT DATA WHICH GAVE MIXED SIGNALS ON THE ECONOMY'S STRENGTH LAST MONTH THE COMMERCE DEPARTMENT SAID HOUSING STARTS ROSE SLIGHTLY LESS THAN EXPECTED TO A 124 MILLION UNIT ANNUAL RATE THE FEDERAL RESERVE SAID US INDUSTRY WAS OPERATING AT 816 CAPACITY A LITTLE HIGHER THAN HAD BEEN FORECAST OILRELATED STOCKS WERE AMONG THE STRONGEST THEY RALLIED ALONG WITH OTHER SEGMENTS NEAR THE CLOSE BUT WERE ALSO AIDED BY A REPORT LATE TUESDAY FROM THE AMERICAN PETROLEUM INSTITUTE A TRADE GROUP SHOWING LOWER CRUDE OIL AND GASOLINE INVENTORIES EXXON ADVANCED 1 1/2 TO 66 1/4 TEXACO JUMPED 1 1/4 TO 65 1/8 CHEVRON ADDED 1 TO 90 AND MOBIL CLIMBED 3/4 TO 73 3/4 THE DOW JONES TRANSPORTATION AVERAGE TUMBLED 1471 OR 097 TO 150790 RAILROAD STOCKS MANAGED TO GAIN GROUND BUT TRUCKERS WERE WEAK HEWLETTPACKARD SHED 3 3/8 TO 83 5/8 AMID CONFUSION OVER THE PALO ALTO CALIF COMPUTER MAKER'S PROSPECTS FOR ITS FISCAL SECOND HALF WHICH ENDS IN OCTOBER A COMPANY PRESENTATION TO ANALYSTS AND REPORTERS IN EUROPE SET OFF CONCERNS THAT ITS BUSINESS WOULD BE DEPRESSED HEWLETT LATER RELEASED A STATEMENT IN THE US SAYING THAT ITS ORDER GROWTH REMAINS STRONG AT THEIR WORST HEWLETT SHARES WERE DOWN MORE THAN SIX POINTS OTHER TECHNOLOGY STOCKS WERE MOSTLY LOWER COMPAQ COMPUTER EASED 5/8 TO 54 DIGITAL EQUIPMENT LOST 1/2 TO 42 3/8 AND MOTOROLA DROPPED 7/8 TO 82 3/4 INTERNATIONAL BUSINESS MACHINES WAS UP 1/2 TO 50 3/8 AMERICAN TELEPHONE & TELEGRAPH LOST 1 1/8 TO 62 1/8 PRUDENTIAL SECURITIES ANALYST JOHN BAUER TRIMMED HIS 1993 AND 1994 EARNINGS ESTIMATES FOR THE NEW YORK LONGDISTANCE TELEPHONE SERVICE COMPANY HE SAID AT&T'S SECONDQUARTER NET INCOME MAY BE FLAT WITH THE 74 CENTS IT POSTED IN THE FIRST QUARTER IT EARNED 72 CENTS A SHARE IN LAST YEAR'S SECOND QUARTER EMC CORP ROSE 1 1/2 TO 18 5/8 AFTER MERRILL LYNCH & CO NAMED THE HOPKINTON MASS MAKER OF COMPUTER DATA STORAGE PRODUCTS ITS FOCUS ONE STOCK OF THE WEEK ANALYST MELINDA REACH SAID THE COMPANY HAS HAD SOLID SALES AND EARNINGS GROWTH CALGON CARBON LOST 1 TO 13 THE PITTSBURGH CONCERN SAID ITS FIRSTQUARTER EARNINGS WILL LIKELY FALL SHORT OF ANALYSTS' EXPECTATIONS THE MEAN FORECAST OF THOSE SURVEYED BY THE INSTITUTIONAL BROKERS ESTIMATE SYSTEM IS PROFIT OF 21 CENTS SHARE ALZA CORP LOST 2 3/8 TO 24 1/2 LATE IN THE DAY THE PALO ALTO CALIF COMPANY ESTIMATED THAT ITS SECONDQUARTER NET INCOME COULD BE LOWER THAN THE 21 CENTS TO 27 CENTS ANALYSTS HAVE PREDICTED 9306170060 930617 WHO'S NEWS GRANT TENSOR GEOPHYSICAL CORP GRANT TENSOR GEOPHYSICAL CORP HOUSTON J KELLY ELLIOTT WAS NAMED CHAIRMAN ACTING CHIEF EXECUTIVE AND A DIRECTOR OF THIS GEOPHYSICAL SERVICES COMPANY MR ELLIOTT WILL CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE OF SIGMA ELECTRONICS INC OF HOUSTON THE PREVIOUS CHAIRMAN AND CHIEF EXECUTIVE WS FRENCH RESIGNED TO JOIN PETROLEUM GEOSERVICES AS OF NORWAY 9306170059 930617 LETTERS TO THE EDITOR THE SHELDON HACKNEY I ADMIRE THE LANI GUINIER BATTLE IS OVER BUT ANOTHER ONE LOOMS THIS TIME NOT ABOUT A PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA BUT ABOUT THE PRESIDENT OF THAT SAME IVY LEAGUE REDOUBT SHELDON HACKNEY WHOM BILL CLINTON HAS NOMINATED TO CHAIR THE NATIONAL ENDOWMENT FOR THE HUMANITIES WHERE LYNNE CHENEY USED TO SIT FOR THE PAST DOZEN YEARS MR HACKNEY HAS RUN PENN ADMIRABLY BEFORE THAT HE WAS PRESIDENT OF TULANE UNIVERSITY AND EARLIER PROVOST AT PRINCETON HE IS A TEACHING HISTORIAN BY TRADE HIS MAJOR SCHOLARLY PREOCCUPATION HIS BELOVED SOUTH UNLIKE MS GUINIER IT IS NOT HIS WRITINGS THAT HAVE TRIGGERED HOSTILE REACTION TO HIS NOMINATION FROM THE EDITORIAL WRITERS OF THE WALL STREET JOURNAL INSTEAD WHAT HAS RILED HIS CRITICS ARE RECENT EVENTS AT PENN IN WHICH MR HACKNEY YOU AVER WENT OUT OF HIS WAY TO CODDLE MINORITIES YOU PAINT HIM AS THE WIMPISH CAPTIVE OF THE FORCES OF POLITICAL CORRECTNESS I SHOULD EXPLAIN THAT THIS MAN IS MY FRIEND AND THAT I KNOW HIM WELL ENOUGH TO SUGGEST THAT PERHAPS YOU SHOULD GET TO KNOW HIM AND HIS ACADEMIC MANAGEMENT STYLE BETTER BEFORE YOU FULMINATE AGAINST HIM FURTHER FOR THIS IS A STRONG GENTLE QUIETLY COURAGEOUS MAN WHOSE YEARS IN ACADEME HAVE BEEN DISTINGUISHED AND ALMOST UNIVERSALLY APPLAUDED IT IS OBVIOUS THAT UNIVERSITY CAMPUSES TODAY ARE YEASTY SOMETIMES QUARRELSOME PLACES ESPECIALLY URBAN CAMPUSES LIKE PENN WHERE EACH YEAR MORE AND MORE MINORITIES COME TO STUDY TO EXERCISE THEIR INTELLECTS AND THEIR EMOTIONS EACH YEAR NEW TENSIONS DEVELOP NEW MUSCLES ARE FLEXED GROUP FOR GROUP MINORITY FOR MINORITY BUT MR HACKNEY HAS LABORED TO MAKE PENN A PLACE OF COMITY DESPITE THE CONFLICT QUOTIENT AND THIS AT A TIME THAT PENN'S UNDERGRADUATE MINORITY ENROLLMENT HAS GROWN FROM 13 TO 30 HE IS ABOUT TO UNDERGO THE WASHINGTON RITUAL OF SENATE CONFIRMATION HEARINGS DURING WHICH NO DOUBT HE'LL BE ASKED AMONG OTHER THINGS ABOUT THOSE RECENT EVENTS DESCRIBED BY ONE WRITER AS RACIAL SENSITIVITY GONE HAYWIRE WHICH CALLED DOWN ON HIM THE WRATH OF THOSE AFOREMENTIONED CRITICS IN THE BEST OF ALL WORLDS PERHAPS UNIVERSITY CAMPUSES WOULD SPAWN MORE LIGHT LESS HEAT BUT THOSE APPARENTLY ARE NOT THE CONDITIONS THAT PREVAIL AT MANY CAMPUSES ACROSS AMERICA MR HACKNEY HAS DEALT WITH VARIOUS ERUPTIONS OVER THE YEARS INCLUDING PROTESTS AGAINST THE PREDICTABLE SPECTRUM OF INVITED SPEAKERS FROM FARRAKHAN TO REAGAN DESPITE ALL HE HAS SUCCEEDED BY AND LARGE IN KEEPING THE PEACE AT PENN ADDICTED TO FREEDOM OF SPEECH FOR ALL COMERS HE HAS INEVITABLY STUMBLED WHO HASN'T BUT FOR HIS CRITICS TO DEFINE HIM HIS CONVICTIONS AND HIS CAREER IN TERMS OF THOSE VIRTUALLY SOLITARY FUMBLES IS UNFAIR AND DISHONEST IF SHELDON HACKNEY'S FINE STEWARDSHIP OF A GREAT UNIVERSITY CAN BE SO MISREPRESENTED IT IS NOT DIFFICULT TO COMPREHEND WHY CAPABLE OTHERS WHO MIGHT BE CALLED UPON TO SERVE IN WASHINGTON WOULD THINK THRICE BEFORE SUBJECTING THEMSELVES TO SIMILAR MISINFORMED OCCASIONALLY MALICIOUS POLITICALLY MOTIVATED CALUMNY 9306170058 930617 REVIEW & OUTLOOK EDITORIAL WHOSE NUKES ARE THEY ANYWAY BREAK OPEN A SUPERPOWER AND WHAT DO YOU GET RUSSIA AND UKRAINE NOW WE HAVE TWO NUCLEAR POWERS IN A STANDOFF OVER WHO GETS THE MISSILES IT'S NOT A PRETTY PICTURE RUSSIAN PRESIDENT BORIS YELTSIN MEETS IN MOSCOW TODAY WITH HIS UKRAINIAN COUNTERPART LEONID KRAVCHUK THE OSTENSIBLE PURPOSE OF THE MEETING IS TO DISCUSS THE DISPOSITION OF THE SOVIET BLACK SEA FLEET YET ANOTHER RESIDUAL OF THE SUPERPOWER BREAKUP WE WOULDN'T BE SURPRISED THOUGH IF ONE OF THE MEN SLIPPED IN A FEW THOUGHTS ON THE SUBJECT OF NUCLEAR WARHEADS WHICH UKRAINE HAS AND RUSSIA WANTS MR YELTSIN WHOSE FATE IS MUCH ON THE MIND OF THE WEST NO DOUBT FEELS HE HOLDS THE UPPER HAND OVER THE UKRAINIANS IN THE PUBLICRELATIONS BATTLE ON THIS ONE A CLOSER LOOK AT THE DISPUTE THOUGH SUGGESTS IT'S NOT THAT CLEAR THAT RUSSIA HAS THE BETTER CASE FOR STEWARDSHIP OF THESE WEAPONS WITH ITS 52 MILLION INHABITANTS AND A TERRITORY THE SIZE OF FRANCE UKRAINE HAS HAD TO JUMP UP AND DOWN AND BEAT ITS BREAST TO GET MUCH OUTSIDE NOTICE EVEN THEN ONLY UKRAINE'S NUCLEAR WEAPONS SEEM TO INTEREST MOST OUTSIDERS UKRAINE IS HOST TO 176 INTERCONTINENTAL BALLISTIC MISSILES WITH ABOUT 1240 NUCLEAR WARHEADS AND SOME 400 TO 600 OTHER WARHEADS ALL CONTROLLED BY RUSSIA THE COUNTRY TURNED OVER TO RUSSIA ITS TACTICAL NUCLEAR WEAPONS LAST YEAR AND IN MAY 1992 PLEDGED IN LISBON TO RATIFY STARTI AND THE NUCLEAR NONPROLIFERATION TREATY BUT UKRAINE LATER BACKED AWAY FROM THIS PLEDGE AND THE REMAINING WARHEADS HAVE BECOME THE CENTER OF INCREASINGLY TENSE RELATIONS BETWEEN THE TWO NEIGHBORS MANY IN THE WEST SEE UKRAINE'S ACTIONS AS BELLIGERENT AND DANGEROUS IN FACT IT IS ASKING A LOT TO DEMAND THAT A NATION VOLUNTARILY SURRENDER POWER UKRAINE HAS BEEN RELUCTANT TO MAKE THIS PLEDGE FOR IMPORTANT REASONS IT STILL SEES A POLITICALLY VOLATILE RUSSIA AS A POTENTIAL SECURITY THREAT AND IS LOATHE TO GIVE RUSSIA THE VERY WEAPONS THAT WOULD ACT AS A CHECK ON RUSSIAN MILITARY POWER ALSO UKRAINE HOPES THE WEAPONS WILL EARN THEM RESPECT AND AID MONEY FROM THE WEST NONETHELESS THE WEST HAS TREATED UKRAINE AS IF ITS IMPORTANCE AS A NATION RESTED SOLELY ON ITS POSSESSION OF NUCLEAR WEAPONS WHY THEN SHOULD UKRAINE RELINQUISH ITS CLAIM TO MANHOOD ONCE OFF THE NUCLEARWEAPONS CRITICAL LIST WASHINGTON IS UNLIKELY TO PAY THE COUNTRY MUCH NOTICE UKRAINE HOWEVER SEEMS FINALLY TO BE GETTING THE ASSURANCES IF NOT YET THE RESPECT IT NEEDS DEFENSE SECRETARY LES ASPIN WENT TO KIEV LAST WEEK TO TURN THE PAGE IN USUKRAINIAN RELATIONS THE US OFFERED TO HELP SEPARATE UKRAINE'S NUCLEAR WARHEADS FROM THE MISSILES THEY'RE DEPLOYED ON AND STORE THEM IN UKRAINE UNDER INTERNATIONAL SUPERVISION MR ASPIN IS ALSO SEEKING TO FORM CLOSER MILITARY RELATIONS BETWEEN THE US AND UKRAINE UKRAINE HAS RESPONDED TO THE GESTURES POSITIVELY IN THE LONG RUN THE MOST IMPORTANT OBJECTIVES OF WESTERN FOREIGN POLICY TOWARD THE FORMER SOVIET UNION SHOULD BE TO STABILIZE THE NEW DEMOCRACIES WHILE HELPING WITH THE DISPOSAL OF THE NUCLEAR ARSENAL MR ASPIN'S PLAN MAY HAVE LOGISTICAL PROBLEMS BUT HIS TRIP TO UKRAINE WAS A LARGE STEP IN THE RIGHT DIRECTION THE EXISTENCE OF THE DISPUTED ICBMS AND OPERATIONAL CONTROL OVER THEM ARE NOT SMALL MATTERS AND LITTLE IS TO BE GAINED BY AN EXTENDED ARGUMENT BETWEEN RUSSIA AND UKRAINE UKRAINE'S RESPONSIVENESS TO THE ASPIN MISSION AT LEAST SUGGESTS THAT THE US CAN INDEED PLAY A USEFUL ACTIVE AND EVENHANDED ROLE IN THE FUTURE OF THESE TWO IMPORTANT NATIONS 9306170057 930617 CORRECTIONS & AMPLIFICATIONS EASTMAN CHEMICAL CO A NEW COMPANY EXPECTED TO BE FORMED IN A SPINOFF BY EASTMAN KODAK CO WILL BE HEADED BY ITS CURRENT PRESIDENT EARNEST W DEAVENPORT JR WHO IS EXPECTED TO RESIGN FROM KODAK'S BOARD EASTMAN CHEMICAL IS EXPECTED TO BORROW 2 BILLION AND GIVE THE PROCEEDS TO KODAK WHICH WILL USE THE MONEY TO PAY DOWN ITS DEBT A FEW LINES CONTAINING MR DEAVENPORT'S NAME AND THE DEBT DETAILS WERE DROPPED FROM AN ARTICLE YESTERDAY GENERAL RE CORP AMERICAN INTERNATIONAL GROUP INC AND MARSH & MCLENNAN COS ARE INVESTING IN REINSURANCE COMPANIES BASED IN BERMUDA BUT NOT A NEW REINSURER ORGANIZED BY USF&G CORP AN ARTICLE YESTERDAY IMPLIED THAT THE COMPANIES WERE PART OF THE USF&G VENTURE 9306170056 930617 TECHNOLOGY HEWLETT CHIEF'S FORECAST SENDS STOCK GYRATING BY MICHAEL J YBARRA AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL PALO ALTO CALIF HEWLETTPACKARD CO'S STOCK PLUNGED 86 IN EARLY TRADING YESTERDAY AFTER ITS CHIEF EXECUTIVE OFFICER GAVE A CAUTIONARY FORECAST OF THE COMPUTER FIRM'S PROSPECTS BUT THE STOCK RECOVERED SOMEWHAT CLOSING DOWN 39 AFTER THE COMPANY REPORTED RELATIVELY HEALTHY ORDER GROWTH SO FAR IN ITS CURRENT QUARTER MEANWHILE FILINGS WITH THE SECURITIES AND EXCHANGE COMMISSION SHOWED THAT HP'S CHIEF EXECUTIVE LEWIS PLATT SOLD A BIG BLOCK OF HIS OWN HOLDINGS OF HP'S STOCK IN LATE MAY AND EARLY JUNE WHEN THE STOCK FETCHED AN AVERAGE 85 JUST UNDER ITS RECORD OF 8750 A SHARE REPORTS OF MR PLATT'S COMMENTS COMING AS HP'S STOCK HOVERED NEAR ITS RECORD PRICE SENT THE STOCK TUMBLING TO AS LOW AS 7950 IN THE MORNING DOWN FROM TUESDAY'S CLOSING PRICE OF 87 BUT HP OFFICIALS QUICKLY ANNOUNCED THAT MR PLATT'S REMARKS REPRESENTED NO CHANGE FROM THE COMPANY'S PAST PRONOUNCEMENTS INCLUDING THOSE MADE AT AN ANALYSTS' MEETING ON MAY 25 IN NEW YORK OFFICIALS ALSO SAID THAT HP'S WORLDWIDE ORDERS IN THE FIRST SIX WEEKS OF ITS THIRD QUARTER GREW 19 OVER THE SAME PERIOD LAST YEAR DOWN FROM THE 26 ORDER GROWTH IN THE FIRST HALF OF THE YEAR BUT STILL WITHIN MANAGEMENT'S EXPECTATIONS ORDER GROWTH IN EUROPE THIS QUARTER HAS SLOWED FROM FIRSTHALF LEVELS THE COMPANY ADDED BY THE END OF THE DAY THE STOCK HAD RECOVERED CLOSING AT 83625 DOWN 3375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ACCORDING TO SEC FILINGS MR PLATT SOLD 10000 OF HIS HP SHARES OR 22 OF HIS CURRENT HOLDINGS IN LATE MAY AND EARLY JUNE MR PLATT COULDN'T BE REACHED FOR COMMENT ABOUT THE SALES WHICH ARE THE LARGEST EVER BY MR PLATT ON RECORD FOR A SINGLE YEAR THE SALE LEAVES MR PLATT WITH 35795 DIRECTLYHELD SHARES 61 INDIRECTLYHELD SHARES AND OPTIONS THAT ARE CURRENTLY EXERCISABLE TO ACQUIRE 66406 SHARES ACCORDING TO THE SEC DATA AN HP SPOKESMAN SAID MR PLATT'S STOCK SALES WHICH BEGAN AROUND MAY 20 CAME WITHIN THE COMPANY'S TRADING WINDOW FOR INSIDERS TYPICALLY THE THREE WEEKS FOLLOWING THE DAY AFTER AN EARNINGS ANNOUNCEMENT 9306170055 930617 REVIEW & OUTLOOK EDITORIAL WHO IS VINCENT FOSTER IN ITS FIRST FEW MONTHS THE CLINTON WHITE HOUSE HAS PROVED ITSELF TO BE CARELESS ABOUT MANY THINGS FROM PRESIDENTIAL HAIRCUTS TO APPOINTING A GOVERNMENT BUT MOST DISTURBING IS ITS CARELESSNESS ABOUT FOLLOWING THE LAW WHILE WE HAVE OUR OWN COMPLAINT THAT WE WILL PRESENTLY EXPLAIN WE HASTEN TO POINT OUT THAT OUR CONCERN IS SHARED BY AT LEAST TWO FEDERAL JUDGES INDEED THEY'RE EXPLORING THE LARGELY UNCHARTED LEGAL GROUND OF USE OF THE CONTEMPT POWER TO GET THE CLINTON CROWD TO OBEY THE LAW IN A SUIT OVER PRESERVATION OF COMPUTER TAPES FROM THE REAGANBUSH ERA JUDGE CHARLES R RICHEY HAS ALREADY ISSUED A CONTEMPT ORDER BECAUSE THE ADMINISTRATION DILLYDALLIED IN FOLLOWING HIS EARLIER ORDER AND THREATENS 50000ADAY FINES AGAINST THE WHITE HOUSE AND NATIONAL ARCHIVES NOW JUDGE ROYCE LAMBERTH HAS THREATENED CONTEMPT UNLESS THE HILLARY CLINTON HEALTH TASK FORCE TAKES STEPS TO FOLLOW HIS ORDER TO PRESERVE MATERIALS RELATING TO ITS ACTIVITIES QUITE FRANKLY WE HAVE MIXED EMOTIONS ABOUT THESE DEVELOPMENTS WE THINK THAT IN THE POSTWATERGATE ERA THE EXECUTIVE BRANCH HAS BEEN ON THE SHORT END OF THE BALANCE OF POWERS AND THAT THE GOVERNMENT WOULD WORK BETTER IF THIS WERE REDRESSED WE FIND JUDGE RICHEY'S ORDER MORE THAN A LITTLE PRESUMPTUOUS AND TEND TO THINK THE LAW BEFORE JUDGE LAMBERTH IS A LEGISLATIVE INTRUSION ON EXECUTIVE POWER BUT WE CAN UNDERSTAND THAT BOTH JUDGES REACTED TO A CERTAIN LACK OF SERIOUSNESS CONTEMPT IN ITS MOST BASIC MEANING TOWARD LEGAL RULINGS JUDGE LAMBERTH'S CASE FOR EXAMPLE CONCERNED WHETHER THE HILLARY TASK FORCE HAD TO FOLLOW THE FEDERAL ADVISORY COMMITTEE ACT IN WHICH CONGRESS PRESCRIBED HOOPS PRESIDENTS HAVE TO JUMP THROUGH IN APPOINTING OUTSIDE COMMISSIONS JUDGE LAMBERTH HELD MUCH OF THE LAW UNCONSTITUTIONAL AND LAID OUT WHAT MIGHT BE SEEN AS ACCOMMODATING REQUIREMENTS BUT DISMISSED THE ARGUMENT THAT THIS WAS NOT AN OUTSIDE COMMISSION BECAUSE MRS CLINTON WAS THE FUNCTIONAL EQUIVALENT OF A GOVERNMENT EMPLOYEE THE GOVERNMENT APPEALED THE LATTER FINDING IN A STILLPENDING CASE IN THE ORAL ARGUMENTS JUDGE LAURENCE SILBERMAN ASKED WHETHER SHE TOOK AN OATH OF OFFICE OR COULD BE IMPEACHED MEANWHILE THE TASK FORCE SIMPLY IGNORED THE REST OF JUDGE LAMBERTH'S RULINGS FOR EXAMPLE HOLDING MEETINGS WITHOUT ADEQUATE NOTICE WE'VE BEEN HAVING A SIMILAR PROBLEM WITH VINCENT FOSTER DEPUTY WHITE HOUSE COUNSEL AND ONE OF MRS CLINTON'S FORMER PARTNERS IN THE ROSE LAW FIRM IN LITTLE ROCK AFTER WE SUCCEEDED IN MAKING WEBSTER HUBBELL FAMOUS IT OCCURRED TO US WE MIGHT HAVE OCCASION TO REPEAT THE FAVOR FOR OTHER ROSE PARTNERS AND REQUESTED PHOTOGRAPHS OF MR FOSTER AND ASSOCIATE WHITE HOUSE COUNSEL WILLIAM KENNEDY EVENTUALLY SOME SUBALTERN IN THE COUNSEL'S OFFICE RELAYED THE MESSAGE MR FOSTER SEES NO REASON WHY HE SHOULD SUPPLY THE JOURNAL WITH A PHOTO GIVEN THIS ENCOURAGEMENT WE FILED A REQUEST FOR PHOTOS OF MR FOSTER AND MR KENNEDY UNDER THE FREEDOM OF INFORMATION ACT THE ACT REQUIRES OFFICIALS TO RESPOND WITHIN 10 BUSINESS DAYS A DEADLINE THAT EXPIRED MAY 21 DESPITE REPEATED INQUIRIES WITH THOSE OFFICIALS WHO RETURN OUR CALLS THE WHITE HOUSE STILL OWES US EITHER SOME PHOTOGRAPHS OR AN EXPLANATION OF WHY OUR REQUEST HAS BEEN REFUSED AT ONE POINT WE WERE TOLD IT OUGHT TO BE WORKED OUT AND WERE REFERRED TO DEPUTY PRESS SPOKESPERSON RICKI SEIDMAN WHO SEEMS NOT TO RETURN CALLS FROM OUR EDITORIAL PAGE STAFF DAVID GERGEN WAS NOT EXACTLY OVERJOYED THAT WE HELD UP PUBLIC COMPLAINT UNTIL HE ARRIVED NOTING THAT OUR ARTISTS HAVE ALREADY CONVERTED HIS PHOTOGRAPH INTO A DOTDRAWING BUT HE SEEMS TO HAVE JOLTED THE MATTER OFF DEAD CENTER WE'RE NOW TOLD THERE'S A DRAFT LETTER SOMEWHERE IN THE BUREAUCRACY SAYING THE FOI ACT DOES NOT APPLY TO THE WHITE HOUSE COUNSEL'S OFFICE BUT THE PRESS OFFICE CAN GIVE US PHOTOS IF IT CHOOSES SO WE'RE BACK TO THE SEIDMAN BLACK HOLE BUT THE LETTER SHOULD BE INTERESTING READING NO DOUBT MR FOSTER AND COMPANY CONSIDER US MISCHIEVOUS AT BEST OF COURSE THE CLINTON ADMINISTRATION HAS LITTLE REASON TO LOVE US BACK WHEN THE REST OF THE PRESS WAS IN ITS PREWACO HONEYMOON WE WERE ALREADY PULLING THE LOOSE STRINGS OF THE BASIC NEW DEMOCRAT LIE STILL WE REMAIN SUPPORTIVE WHEN MR CLINTON RETURNS TO THAT CAMPAIGN THEME AS WITH NAFTA INDEED WHEN MR HUBBELL PROVED MAN ENOUGH TO FACE PUBLIC HEARINGS ON HIS APPOINTMENT AS ASSOCIATE ATTORNEY GENERAL WE SAW NO REASON HE SHOULD BE DENIED CONFIRMATION EVEN IF WE WERE AS UNIFORMLY HOSTILE AS SOMETIMES CHARGED THERE ARE LARGER POINTS HERE HOW AN ADMINISTRATION DEALS WITH CRITICS IS A BASIC TEST OF ITS CHARACTER AND MORES AND HOW SCRUPULOUSLY IT FOLLOWS THE LAW IS EVEN MORE DIRECTLY SIGNIFICANT DOES THE LAW MEAN ONE THING FOR CRITICS AND ANOTHER FOR FRIENDS WILL WE IN THE END HAVE TO GO TO COURT TO GET A REPLY OR WILL EVEN THAT WORK DOES IT TAKE A 50000ADAY FINE TO GET THIS MULE'S ATTENTION WILL A TASK FORCE BEARING THE FIRST LADY'S NAME BLITHELY IGNORE A DISTRICT COURT ORDER EVEN AS ITS APPEAL IS BEING HEARD BY THE DC CIRCUIT JUDGE LAMBERTH DEMANDED I WANT A NAME AND ADDRESS OF WHO'S GOING TO BE ACCOUNTABLE WHO'S GOING TO BE HELD IN CONTEMPT IF THERE ARE DOCUMENTS DESTROYED WHO ENSURES THAT THIS ADMINISTRATION FOLLOWS THE LAW OR EXPLAINS WHY NOT A GOOD QUESTION WHILE CONSTITUTIONAL LAW MAY NOT HAVE BEEN THE BIG PART OF THE ROSE FIRM'S PRACTICE IT SEEMS TO US THAT A GOOD MAN FOR THE JOB WOULD BE DEPUTY COUNSEL FOSTER 9306170054 930617 INTERNATIONAL WORLD WIRE COMPILED BY RICAHRD L HOLMAN THE EUROPEAN COMMUNITY PREDICTED THE 12 MEMBER STATES' ECONOMIC OUTPUT WILL CONTRACT 05 THIS YEAR THE FIRST SHRINKAGE SINCE 1975 AND GROW JUST 125 IN 1994 THE EC COMMISSION REPORT LARGELY BLAMED DEEPENING RECESSION IN GERMANY WHICH SAID ITS WESTERN REGION'S OUTPUT OF GOODS AND SERVICES COULD SHRINK 2 OR MORE THIS YEAR TURNAROUND PROSPECTS DIMMED AMID FRESH WARNINGS OF FALLING GERMAN COMPETITIVENESS AND AN ACCELERATED DROP IN INDUSTRIAL INVESTMENT ECONOMIES ALSO ARE EXPECTED TO CONTRACT IN FRANCE BELGIUM THE NETHERLANDS AND SPAIN NOTING THE EC'S CRIMPED JOBCREATING ABILITY AN OFFICIAL URGED MOVES TO PROMOTE GROWTH ESPECIALLY LOWER INTEREST RATES BUT WARNED AGAINST DEFICITBOOSTING GOVERNMENT BORROWING EC UNEMPLOYMENT COULD TOP 11 THIS YEAR AND 12 NEXT YEAR EUROPEAN COMMUNITY TELECOMMUNICATIONS MINISTERS AGREED TO LIBERALIZE BASIC TELEPHONE SERVICES IN AT LEAST SIX OF THE 12 EC COUNTRIES BY 1998 THE ACCORD ALLOWS COUNTRIES WITH SMALL NETWORKS LUXEMBOURG AND POSSIBLY BELGIUM UNTIL THE YEAR 2000 TO PHASE OUT THEIR NATIONAL PHONE MONOPOLIES AND GIVES THE POOREST MEMBERS SPAIN PORTUGAL GREECE AND IRELAND UNTIL 2003 THOUGH THE DECISION FALLS SHORT OF THE EC COMMISSION'S HOPES TO END ALL MEMBERS' MONOPOLIES BY 1998 COUNTRIES THAT AGREED TO MEET THAT DEADLINE BRITAIN FRANCE GERMANY ITALY DENMARK AND THE NETHERLANDS REPRESENT A BIG CHUNK OF THE EC'S 125 BILLION ANNUAL MARKET IN TELECOMMUNICATIONS SERVICES A QUASIGOVERNMENTAL VENTURE OPENED IN JAPAN TO HELP FOREIGN FIRMS SET UP BUSINESSES IN THE COUNTRY ITS SERVICES RANGE FROM FINDING PERSONNEL TO ARRANGING TALKS ON MERGERS AND ACQUISITIONS FOREIGN INVESTMENT IN JAPAN DEVELOPMENT INC CREATED BY A 1992 LAW TO PROMOTE INDUSTRIAL IMPROVEMENTS WAS FOUNDED WITH 314 MILLION FROM 86 JAPANESE COMPANIES AND 47 MILLION FROM THE GOVERNMENT AND ITS MANAGEMENT IS DRAWN FROM EACH JAPANESE INVESTMENT OVERSEAS OUTPACES FOREIGN INVESTMENT IN JAPAN BY 10 TO 1 A GAP THE VENTURE IS INTENDED TO NARROW CHINA WANTS FOREIGN INVESTMENT TO HELP DEVELOP ITS GOLD INDUSTRY THE CHINA DAILY SAID FOREIGN PARTICIPATION WOULD BE LIMITED TO ASSISTING WITH MINING TECHNOLOGY CHINA HAS LONG BARRED FOREIGNERS FROM HELPING EXPLOIT ITS NATURAL RESOURCES BUT NEEDS FOREIGN FUNDS AND TECHNOLOGY TO GET RAW MATERIALS FASTER TO MEET INDUSTRIAL DEMAND CHINA PLANS TO BUILD 10 BIG GOLDPRODUCTION AREAS AND AIMS FOR INDUSTRY GROWTH OF 10 A YEAR IN THIS DECADE THAILAND'S PROPOSED INTERNATIONAL AIRPORT 12 MILES EAST OF BANGKOK WOULD CREATE AN ASIAN HUB TO MEET RAPIDLY GROWING CARGO AND PASSENGER DEMAND A GOVERNMENT OFFICIAL SAID NONG NGU HAO AIRPORT TO COST 100 BILLION BAHT 4 BILLION WOULD BE ONE OF THE WORLD'S LARGEST THE SIXYEAR CONSTRUCTION JOB IS TO START IN THREE YEARS BANGKOK'S DON MUANG AIRPORT CAN HANDLE 25 MILLION PASSENGERS A YEAR WHILE NONG NGU HAO IS TO SERVE 50 MILLION BY THE YEAR 2010 AND EVENTUALLY 100 MILLION THE WORLD TRADE BODY'S DECISIONMAKING COUNCIL AGREED TO SET UP A PANEL TO EXAMINE THE EUROPEAN COMMUNITY'S NEW RULES ON BANANA IMPORTS THE RULES WOULD ESTABLISH QUOTAS AND SET HIGH TARIFFS ON IMPORTS EXCEEDING CERTAIN LEVELS FROM COUNTRIES OTHER THAN THE SOCALLED AFRICAN CARIBBEAN AND PACIFIC GROUP THE GENERAL AGREEMENT ON TARIFFS AND TRADE ALSO WELCOMED RUSSIA'S MEMBERSHIP BID AND EXPELLED YUGOSLAVIA IN THE BANANA DISPUTE SOME LATIN AMERICAN EXPORTERS COSTA RICA COLOMBIA GUATEMALA NICARAGUA AND VENEZUELA COMPLAINED TO GATT THAT THE EC DISCRIMINATES AGAINST THEM AND FAVORS BANANAS FROM FORMER EUROPEAN COLONIES WITH WHICH THE EC HAS A TRADEPREFERENCE PACT THE BROADER EC CURBS TAKE EFFECT JULY 1 A GATT PANEL PREVIOUSLY RULED THAT THE EC'S CURRENT PRACTICES ON BANANAS FLOUTED GATT RULES AND RECOMMENDED CHANGES THE EC ASKED GATT TO DELAY UNTIL NEXT MONTH ITS CONSIDERATION OF THAT REPORT IN PARIS A PARLIAMENTARY REPORT BLASTED GATT AS OUTDATED AND URGED BUILDING TRADE BARRIERS AROUND THE EC GERMAN INDUSTRY GRANTS AN AVERAGE OF 40 PAID VACATION DAYS A YEAR CONTRIBUTING TO HIGH LABOR COSTS THAT THREATEN SOME COMPANIES' PROFITABILITY IN THE US THE AVERAGE IS 23 DAYS HIGHWAYMEN IN SPAIN POSING AS GOOD SAMARITANS ARE ROBBING FOREIGN TOURISTS WHO RENT CARS AT MADRID'S AIRPORT DIPLOMATS SAID THIEVES PUNCTURE TIRES PRETEND TO HELP CHANGE THE FLATS AND STEAL VALUABLES THREE OR FOUR VICTIMS A WEEK PREDOMINANTLY AMERICANS HAVE FILED COMPLAINTS 9306170052 930617 CREDIT RATINGS BEVERLY ENTERPRISES INC FORT SMITH ARK STANDARD & POOR'S CORP SAID IT RAISED ITS RATING ON THIS NURSING HOME OPERATOR'S SENIOR SECURED DEBT TO DOUBLEBMINUS FROM SINGLEBPLUS AND ON ITS SUBORDINATED DEBT TO SINGLEB FROM SINGLEBMINUS THE RATINGS AGENCY ALSO ASSIGNED ITS SINGLEBPLUS RATING TO THE COMPANY'S 20 MILLION OF MORTGAGE DEBT INCLUDING THE MORTGAGE DEBT A TOTAL OF 128 MILLION OF DEBT IS INVOLVED S&P SAID THE UPGRADE REFLECTS INCREASED CONFIDENCE IN BEVERLY'S ABILITY TO EXTEND ITS RECORD OF OPERATING IMPROVEMENT AND THE COMPANY'S ENHANCED FINANCIAL FLEXIBILITY CNA FINANCIAL CORP MOODY'S INVESTORS SERVICE INC SAID IT LOWERED THE SENIORDEBT RATING OF THIS CHICAGOBASED INSURANCE HOLDING COMPANY A UNIT OF LOEWS CORP TO SINGLEA1 FROM DOUBLEA2 AFFECTING ABOUT 550 MILLION IN SECURITIES MOODY'S SAID THE DOWNGRADE CONCLUDES A RATING REVIEW ANNOUNCED FEB 8 MOODY'S ALSO LOWERED THE COMPANY'S PREFERREDSTOCK RATING AND INSURANCE FINANCIALSTRENGTH RATINGS OF SUBSIDIARIES MOODY'S SAID THE DOWNGRADES WERE PROMPTED MAINLY BY A FOURTHQUARTER 1992 CHARGE OF 15 BILLION FOR ASBESTOSRELATED INJURY CLAIMS THAT WAS TAKEN BY CONTINENTAL CASUALTY CO A CNA UNIT MOODY'S SAID THAT CONTINENTAL'S ASBESTOS LITIGATION IS LIKELY TO CONTINUE WELL BEYOND 1993 AND THAT THE ULTIMATE LOSSES ARE DIFFICULT TO PREDICT A CNA SPOKESMAN SAID THE COMPANY HAD NO COMMENT ON THE SENIORDEBT DOWNGRADE 9306170051 930617 US JAPAN FAIL TO SETTLE CONSTRUCTIONMARKET RIFT WASHINGTON THE US AND JAPAN ENDED TWO DAYS OF NEGOTIATIONS WITHOUT REACHING AN AGREEMENT ON OPENING UP JAPAN'S CONSTRUCTION MARKET A US OFFICIAL SAID JAPAN REFUSED TO ACCEPT CERTAIN US DEMANDS INCLUDING AN END TO THE PRACTICE OF LETTING ONLY CERTAIN GOVERNMENTLICENSED COMPANIES BID FOR PUBLICWORKS JOBS JAPANESE PUBLIC WORKS PROJECTS AMOUNT TO MORE THAN 250 BILLION IN CONTRACTS EACH YEAR THE US HAS ACCUSED JAPAN OF DISCRIMINATING AGAINST FOREIGN COMPANIES THAT SUBMIT BIDS FOR GOVERNMENT CONSTRUCTION ARCHITECTURAL AND ENGINEERING CONTRACTS NO FURTHER TALKS HAVE BEEN SCHEDULED 9306170049 930617 LEISURE & ARTS BUSINESS BOOKSHELF THE SALOMON SCANDAL BY JAMES B STEWART LESS THAN TWO YEARS AGO THE SALOMON BROS SCANDAL SEEMED TO HAVE ALL THE MAKINGS OF A ROBERT LUDLUM THRILLER REALLIFE CHARACTERS WHO EMBODIED THE EXCESSES OF THE '80S A SINISTER CONSPIRACY TO UNDERMINE THE INTEGRITY OF NO LESS AN INSTITUTION THAN THE US TREASURY WITH THE SURVIVAL OF AN EMINENT INVESTMENT BANK HANGING IN THE BALANCE BY NOW IT SEEMS THAT SOMEONE IN THIS AFFAIR SHOULD HAVE BECOME A HOUSEHOLD NAME A CONVENIENT SYMBOL FOR WALL STREET BASHERS WHY ISN'T PAUL MOZER THAT PERSON AS THE FORMER CHIEF GOVERNMENTBONDS TRADER FOR SALOMON MR MOZER LAY AT THE HEART OF THE SCANDAL HE PLACED BIDS THAT WERE PURPORTEDLY FOR SALOMON CLIENTS BUT WERE IN FACT FOR SALOMON ITSELF THIS ENABLED SALOMON TO BID FOR AND ULTIMATELY BUY MORE THAN 35 OF AN ISSUE A TREASURY RULE LIMITS BIDS BY ANY ONE PURCHASER TO 35 AFTER SUCCESSFULLY IMPLEMENTING THE SCHEME AT THE MAY 1990 AUCTION SALOMON CONTROLLED SO MUCH OF THE SUPPLY OF THESE JUSTISSUED SEVENYEAR TREASURY NOTES THAT A SQUEEZE DEVELOPED SHORTSELLERS AND OTHERS WHO NEEDED TO BUY THE NOTES COULDN'T GET THEM WHICH DROVE UP THEIR PRICE SALOMON PROFITED HANDSOMELY AS IT GRADUALLY UNLOADED ITS INVENTORY TOP SALOMON OFFICERS INCLUDING JOHN MERIWETHER THE SALOMON VICE CHAIRMAN WHO SUPERVISED MR MOZER'S TRADES AND JOHN GUTFREUND SALOMON'S CHAIRMAN KNEW OF MR MOZER'S ACTIONS BUT DID NOTHING LATER CLAIMING THE MATTER HAD SOMEHOW SLIPPED BETWEEN THE CRACKS ALL THIS WAS CLUMSILY DISCLOSED BY THE FIRM AFTER THE GOVERNMENT STARTED INVESTIGATING PROMPTED BY PRICEGOUGING COMPLAINTS FROM SHORTSELLERS AND OTHER MARKET PARTICIPANTS STRAIGHTARROW WARREN BUFFETT STEPPING IN TO PROTECT HIS 700 MILLION INVESTMENT IN SALOMON PREFERRED STOCK FINALLY FORCED OUT THOSE RESPONSIBLE INCLUDING MR GUTFREUND AND CLOSED THE AFFAIR WITH THE GOVERNMENT FOR 275 MILLION IN CRIMINAL PENALTIES AND A 290 MILLION SETTLEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION MR MOZER WAS INDICTED AFTER A ONEFELONY PLEA BARGAIN FELL APART A DEAL STILL SEEMS LIKELY A GRANDJURY INVESTIGATION IS APPARENTLY STILL SIFTING THROUGH EVIDENCE EVEN SO SALOMON THOUGH SHAKEN HAS SURVIVED IN NIGHTMARE ON WALL STREET SIMON & SCHUSTER 272 PAGES 23 MARTIN MAYER RETELLS THIS STORY WITHOUT ANSWERING SOME OF THE MOST INTRIGUING QUESTIONS WAS MR MOZER THE LONE WOLF OTHERS IN THE FIRM CLAIMED IF SO WHY DIDN'T MESSRS MERIWETHER AND GUTFREUND MOVE QUICKLY AND FORCEFULLY TO DISCIPLINE HIM IS MR MOZER A SCAPEGOAT AS HIS LAWYER STANLEY ARKIN CLAIMS HOW COULD ANYONE MONOPOLIZE A MARKET SO BROAD AND LIQUID AND IF SUCH MANIPULATION IS POSSIBLE WHAT SHOULD BE DONE TO PREVENT IT CURIOUSLY THOUGH MR MOZER'S CHARACTER AND MOTIVATION LIE AT THE CENTER OF THE STORY HE DISAPPEARS ENTIRELY FOR FULLY THREEQUARTERS OF THE BOOK AND IS AS MUCH AN ENIGMA AT THE END AS HE WAS AT THE OUTSET THE SAME GOES FOR MR GUTFREUND WHAT WAS HE THINKING WHEN HE FIRST LEARNED OF MR MOZER'S PHONY BIDS WHAT IS MR GUTFREUND THINKING NOW AND HOW IS HE TAKING HIS EARLY EXIT THERE'S NO INDICATION THAT HE OR ANY OF THE OTHER PRINCIPAL CHARACTERS CONFIDED IN MR MAYER FROM THE EVIDENCE IN NIGHTMARE THERE APPEARS TO HAVE BEEN LESS TO THE SALOMON SCANDAL THAN FIRST MET THE EYE IT'S TRUE AS GRAPHS OF THE YIELD CURVE ON JULY 1 1991 MAKE CLEAR THAT YIELDS ON THE APRIL AND MAY TWOYEAR TREASURY NOTES WERE ABERRATIONALLY LOW MEANING THAT PRICES OF THE NOTES WERE BEING BID UP BUT WHY WAS A CONSPIRACY AT WORK OR WAS THIS JUST ONE OF THE MANY ROUTINE GLITCHES THAT SURFACE AS SALOMON LATER ARGUED JUST BECAUSE MR MOZER CONTROLLED MOST OF THE ISSUE DOESN'T MEAN HE COULD EFFECT A SQUEEZE SOMEONE HAD TO BET AGAINST HIM BY SELLING THE ISSUE SHORT AND EVEN THEN SHORTSELLERS CAN ORDINARILY PROTECT THEMSELVES BY BORROWING THE NOTES THROUGH A REPURCHASE AGREEMENT IN SEPT 1992 CONGRESSMAN EDWARD MARKEY'S SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE HELD HEARINGS THEY WERE INCONCLUSIVE ON THE QUESTION OF WHETHER ANY MARKET MANIPULATION HAD IN FACT OCCURRED THE JUSTICE DEPARTMENT LAUNCHED BUT THEN DROPPED AN ANTITRUST INVESTIGATION BOTH THE FEDERAL RESERVE AND THE TREASURY DEPARTMENT APPEAR TO HAVE CONCLUDED THAT THE INTEGRITY OF THE TREASURY MARKET WASN'T UNDERMINED ONCE MR MOZER'S CASE IS RESOLVED AND HE NEEDN'T INVOKE THE FIFTH AMENDMENT PERHAPS HE'LL PERFORM A PUBLIC SERVICE BY REVEALING ALL HE KNOWS OF THIS AFFAIR IF THERE WAS SUCCESSFUL MANIPULATION OR PRICEFIXING IN THE TREASURY MARKET IT WOULD BE A SERIOUS MATTER SINCE EVEN A SLIGHT INCREASE IN RATES SUBSTANTIALLY BOOSTS THE GOVERNMENT'S BORROWING COSTS WITH TAXPAYERS FOOTING THE BILL MR MAYER OBVIOUSLY BELIEVES THAT SOMETHING LIKE THIS HAPPENED AND HE HYPOTHESIZES THAT THE GOVERNMENT'S SUBSEQUENT REGULATORY INACTION REPRESENTS A CAPITULATION TO POWERFUL WALL STREET INTERESTS HE LAMENTS THAT NEITHER THE FED NOR THE TREASURY WAS WILLING TO TAKE SIGNIFICANT STEPS TO CLEAN UP THE GOVERNMENT SECURITIES MARKETS BUT IN FAILING TO GET TO THE BOTTOM OF THE SALOMON AFFAIR HE DOESN'T MAKE THE CASE THAT SUCH STEPS ARE NEEDED MR STEWART IS A FORMER PAGEONE EDITOR OF THE JOURNAL 9306170047 930617 LEISURE & ARTS TV CONNIE CHUNG'S OTHER JOB LIFE BEHIND BARS BY DOROTHY RABINOWITZ THE PREMIERE OF CBS'S NEW MAGAZINE SHOW SCORES WITH MS CHUNG'S PROFILE OF FIRST BROTHER ROGER CLINTON AND BERNARD GOLDBERG'S INVESTIGATION INTO THE SUSPICIOUS DEATH OF A MARINE OFFICER THE PORTRAIT OF ROGER CLINTON THAT EMERGES HERE ISN'T LIKELY TO MAKE THE WHITE HOUSE HAPPY THERE'S A LOT OF CHILD STILL LEFT IN HIM THE YOUNGER CLINTON AGREES AND HE EARNESTLY ASSURES MS CHUNG HE DOESN'T EVER WANT THAT CHILDISHNESS TO LEAVE HIM NO DANGER OF THAT IT WOULD APPEAR MR CLINTON TALKS MOVINGLY ABOUT HIS FRIGHTENING CHILDHOOD UNFORTUNATELY HE GOES ON TO TALK PRODDED BY A WICKEDLY ENERGETIC MS CHUNG ABOUT A LOT OF OTHER THINGS AS WELL AMONG THEM HIS NEWFOUND SHOWBUSINESS OPPORTUNITIES MR CLINTON SEEMS TO THINK THESE HAVE SOMETHING TO DO WITH HIS TALENTS THE SHOW'S SEGMENT ON THE DEATH OF A MARINE COLONEL IS EXEMPLARY REPORTING MR GOLDBERG CONDUCTS HIS INVESTIGATIONS WITHOUT MISTAKING HIMSELF FOR A PROSECUTOR A RARE THING IN TELEVISION JOURNALISM A PITY THIS PREMIERE COULDN'T HAVE YIELDED ANOTHER RARITY A LINEUP THAT DIDN'T INCLUDE AN OPUS ON SEXUAL HARASSMENT FOR THOSE WHO LIKE TO KEEP UP WITH THE REALLY GREAT ATROCITIES OF OUR AGE CORRESPONDENT EDIE MAGNUS IS HERE TO REPORT IN TONES OF PANTING URGENCY ON THE CASE OF A JUNIORHIGHSCHOOL GIRL UPSET BY MALE CLASSMATES WHO MAKE RUDE SEXUAL COMMENTS ABOUT HER WHEN HER MOTHER DIED THE FUTURE FIRST LADY'S FATHER LASHED OUT AT THE MINISTER FOR SAYING THAT GOD WAS GOOD THE SUBJECT OF THIS VIVID HISTORY A SMALL GIRL AT THE TIME WAS SHOCKED TO HEAR ANYONE RAIL SO AGAINST SO IMPORTANT AN AUTHORITY LIKE A NUMBER OF OTHER EARLY EXPERIENCES THIS EVENT PROBABLY SERVED AS PREPARATION FOR LIFE WITH LYNDON JOHNSON AS A TEENAGER LADY BIRD LIKED JUMPING INTO PLANES TO RIDE WHO KNEW WHERE WITH BARNSTORMING PILOTS MOREOVER SHE DECIDED AT AN EARLY AGE THAT SHE WANTED TO MAKE HER LIFE AND CAREER IN ALASKA OR SOME OTHER WILD AND STRANGE PLACE SHE MANAGED ESSENTIALLY THE SAME THING BY MARRYING LYNDON JOHNSON THERE IS PLENTY OF COMPELLING HISTORY HERE BOTH FAMILIAL AND SOCIAL BUT THE REAL STRENGTH OF THIS BIOGRAPHY IS IN THE CHARM OF THIS REDOUBTABLE FIRST LADY IT'S GOOD TO SEE HER AGAIN THE HARDLY LESS REDOUBTABLE HEROINE OF THIS BIOGRAPHY WON THE NOBEL PRIZE FOR LITERATURE IN 1938 PEARL S BUCK THE DAUGHTER OF MISSIONARIES AND AUTHOR OF THE GOOD EARTH AMONG HER OTHER BESTSELLERS OF THE 1930S AND '40S MADE HER LITERARY CAREER WRITING ON THE RURAL CHINA IN WHICH SHE GREW UP A LOT OF THE LITERARY WORLD OF COURSE DIDN'T THINK MUCH OF MS BUCK'S TALENTS AND THEY WERE RIGHT FOR ONCE AS JAMES MICHENER ONE OF HER ADMIRERS SCOFFINGLY NOTES THE DRAMA OF THE WRITER'S LIFE STORY HERE IS UNDENIABLE BUT THE GREATER DRAMA IS IN THE PLENTIFUL AND STARK FOOTAGE SOME OF IT FROM MS BUCK'S HOME MOVIES OF LIFE IN THE CHINA OF THE '20S AND '30S LIFE IN LOS ANGELES COUNTY PRISON IS NO PICNIC AS THIS FILM INSTRUCTS US STEPPING ON SOMEONE'S SHOES WITHOUT A FAST APOLOGY CAN FOR INSTANCE INVITE LETHAL ATTACK THE PRISONERS GIVE RICHLY DETAILED DEMONSTRATIONS ALONG WITH OTHER INVALUABLE LORE ON HOW TO SWING RAZORS SO AS TO ENSURE THAT THE BLADE CUTS THE CAROTID ARTERY OF THE PORTRAITS IN THIS FILM NONE STANDS OUT MORE THAN THAT OF THE INTREPID YOUNG BLOND PRISON DEPUTY WHO MAKES HER WAY DAILY THROUGH A GENUINELY MENACING MALE WORLD AND WITH NARY A WORD ABOUT SEXUAL HARASSMENT SUCH A PERSON MUST FIND IT AMUSING TO HEAR ABOUT THE PSYCHIC TERRORS THAT ALLEGEDLY BEFALL WOMEN WORRIED A CONSTRUCTION WORKER MIGHT WHISTLE AT THEM ON THE STREET RALPH MACCHIO PLAYS AND VERY WELL TOO THE YOUNG MARINE CONVICTED IN 1981 OF COMMUNICATING WITH THE VIETNAMESE ENEMY THIS FILM TOLD FROM MR GARWOOD'S POINT OF VIEW CAN'T BE ACCUSED OF OBJECTIVITY STILL IT HAS A GRAPHIC POWER UNTIL THAT IS THE BIZARRE HEROIC ENDING COMPLETE WITH TRIUMPHAL MUSIC THAT MAY MAKE MORE THAN A FEW VIEWERS GAG 9306170046 930617 UMW EXPANDS ITS STRIKE TO SEVEN ADDITIONAL MINES HANSON PLC'S PEABODY AND CONSOL ENERGY ARE AMONG THE NATION'S LARGEST COAL PRODUCERS THE NEWLY TARGETED MINES ARE IN WEST VIRGINIA AND KENTUCKY IN EARLY JUNE PEABODY'S PRESIDENT GS SHIFLETT SUSPENDED 163 UNION WORKERS AT THE NEWLY STRUCK CAMP NO 1 MINE IN KENTUCKY AFTER THEY CHANTED WE WANT A CONTRACT THE WORKERS SINCE RETURNED TO WORK THE UNION SAID IT IS STRIKING OVER LACK OF JOB SECURITY AND UNFAIR LABOR PRACTICES BY MEMBER COMPANIES OF THE BITUMINOUS COAL OPERATORS' ASSOCIATION THE BCOA ITSELF FILED UNFAIR LABOR CHARGES AGAINST THE UMW THIS WEEK PEABODY DID THE SAME LAST WEEK OTHER COMPANIES OWNING STRIKETARGETED MINES INCLUDE ASHLAND COAL CO ZIEGLER COAL HOLDING CO AMAX INC ARCH MINERAL CORP ROCHESTER & PITTSBURGH COAL CO CLI CORP AND CONSOL WHICH IS OWNED BY GERMANY'S RHEINBRAUN AG AND DUPONT CO 9306170045 930617 LEISURE & ARTS HUNTING FOR THE POLITICALLY CORRECT '90S 3D ARCHERY BY MICHAEL PEARCE JUNCTION CITY KAN SHROUDED BY SHADE THE STATIONARY FORM OF A WHITETAILED BUCK WAS TOUGH TO SPOT IN THE DENSE WOOD LOT THOUGH JUST 25 YARDS AWAY IT WOULD BE HARD TO HIT WITH AN ARROW THROUGH THE SCREEN OF THICK FOLIAGE AFTER SEVERAL SECONDS OF STUDY AND WORKING MY BODY INTO THE KIND OF TWISTED STOOP THAT WOULD HAVE MADE GUMBY PROUD I THREADED AN ALUMINUM ARROW SHAFT THROUGH A FISTSIZED WINDOW IN THE BRUSH FOR A CLEAN KILL DURING THE NEXT HOUR I TALLIED AN ASSORTMENT OF HITS AND MISSES ON ANIMALS RANGING FROM HUGE MAJESTIC BULL ELK TO SMALL WILD TURKEYS AS IS ALWAYS THE CASE WITH BOWHUNTING EACH SHOT HAD POSED A UNIQUE CHALLENGE THAT HAD MADE THE SUCCESSES SWEETER AND THE FAILURES MORE FRUSTRATING THAN THEY WOULD HAVE BEEN WITH A RIFLE BUT I WAS NOT ON A DREAMLIKE MULTISPECIES BOWHUNT DEEP IN A PRISTINE WILDERNESS I WAS NEAR A MAJOR INTERSTATE AT A SPORTSMEN'S CLUB JUST OUTSIDE THIS TOWN OF SOME 20000 PEOPLE THOUGH THEY APPEARED INCREDIBLY LIFELIKE THE ANIMALS WERE MADE OF FOAM RATHER THAN FUR IT'S FROM THESE THREEDIMENSIONAL TARGETS THAT ONE OF AMERICA'S FASTEST GROWING SPORTS GETS ITS NAME LIKE MOST SPORTS WHAT'S NOW CALLED 3D ARCHERY WASN'T INVENTED OVERNIGHT INSTEAD IT EVOLVED OVER THE PAST 20 YEARS IT WAS STARTED BY BOWHUNTERS WHO MADE LIFESIZE DEER TARGETS OF FOAM OR CARDBOARD FOR REALISTIC PRESEASON PRACTICE BUT IN JUST THE PAST THREE YEARS 3D SHOOTING HAS GONE THROUGH A PHENOMENAL GROWTH SPURT AND TURNED INTO A SPORT IN ITS OWN RIGHT DAVID WOODWARD PRESIDENT OF THE INTERNATIONAL BOWHUNTING ORGANIZATION REPORTED THERE WERE 56 QUALIFYING SHOOTS FOR THE 1991 NATIONAL 3D CHAMPIONSHIPS IN 1992 THAT NUMBER HAD REACHED 170 IT WILL BE MUCH HIGHER BEFORE 1993 IS COMPLETE AND THOSE ARE JUST THE SANCTIONED OFFICIAL SHOOTS FOR EVERY ONE OF THOSE THERE ARE DOZENS UPON DOZENS OF SIMPLE 3D EVENTS HELD BY SPORTSMEN'S CLUBS BOWHUNTERS GROUPS AND INFORMAL GATHERINGS OF FRIENDS WHO ALL LOVE THE SPORT MUCH OF 3D'S SUCCESS CAN BE ATTRIBUTED TO THE SIMPLE FACT THAT BOWHUNTING IS THE FASTEST GROWING FORM OF HUNTING IN ALL 50 STATES YEAR AFTER YEAR THOUSANDS OF NEW ARCHERS TAKE TO THE FIELD TO ENJOY THE ADDED CHALLENGE AND SEASONS LONGER THAN THOSE FOR GUN HUNTING YET BOWHUNTERS AREN'T THE ONLY ONES WHO ARE SEEING A GLORIFIED STICK AND STRING AS A PRIME LEISURE TOOL IN FACT ALL FORMS OF ARCHERY ARE GROWING AT UNPRECEDENTED RATES WITH FIREARMS UNDER SO MUCH PRESSURE AND CONFINEMENT ARCHERY IS SEEN AS A FRIENDLY' WAY TO SHOOT SAYS RANDY SCHOECK ADVERTISING MANAGER FOR EASTON ALUMINUM THE WORLD'S LEADING ARROW MANUFACTURER IT'S ALSO SOMETHING THAT'S AVAILABLE TO EVERYONE AMERICA'S YOUTH AND WOMEN ARE GETTING INTO THE SPORT IT'S ONE OF THOSE FEW THINGS AN ENTIRE FAMILY CAN DO WITH GOOD EQUIPMENT WITHIN AS LITTLE AS 20 MINUTES OR AT THE MOST A FEW DAYS ANYONE CAN BE SHOOTING A BOW ACCURATELY MR SCHOECK ALSO ADMITS THAT THE SPORT HAS ENJOYED THE KIND OF PUBLICITY THAT MONEY SIMPLY CANNOT BUY WE'VE HAD SOME TREMENDOUS EXPOSURE IN THE 1988 OLYMPICS 14YEAROLD DENISE PARKER WON A BRONZE MEDAL IN ARCHERY SHE WAS ALL OVER THE PLACE HE SAYS TELEVISION NEWSPAPERS RADIO MAGAZINES AND EVEN CEREAL BOXES THEN IN 1992 AT BARCELONA ANTONIO REBOLLO LIT THE OLYMPIC TORCH WITH A FLAMING ARROW IN FRONT OF THREE BILLION VIEWERS MR SCHOECK AND OTHER ARCHERY PROMOTERS ARE ALSO PLEASED WITH THE GROWTH OF SPORTS SUCH AS SKI ARCHERY OTHERWISE KNOWN AS THE BOWMAN'S BIATHLON IN WHICH ATHLETES MUST MASTER THE RIGORS OF CROSSCOUNTRY SKIING ALONG WITH PRECISION TARGET SHOOTING AND BOWFISHING WHICH COMBINES ANGLING WITH ARCHERY BUT 3D SHOOTING IS A MORE FUNDAMENTAL ADVANCE SINCE IT COMBINES WHAT WERE ONCE TWO VERY DISTINCT SCHOOLS OF ARCHERY FOR DECADES THE GAME WAS DIVIDED INTO THOSE WHO HUNTED AND THOSE WHO PUNCHED PAPER MOST BOWHUNTERS SCORN TRADITIONAL TARGET ARCHERY WITH ITS HIGH DEGREE OF REPETITION SHOOTING SCORES OF ARROWS FROM THE SAME DISTANCE AT THE SAME KIND OF TARGET OVER AND OVER AGAIN OTHER DRAWBACKS ARE THAT THE SPORT IS GENERALLY PLAYED INDOORS AND DOESN'T DEVELOP IMPROVED SKILLS FOR BOWHUNTING FOR THEIR PART TARGET ARCHERS DIDN'T WANT TO SPEND WHAT CAN AMOUNT TO HUNDREDS OF HOURS IN WET COLD WOODS SCOUTING ANIMALS WAITING IN TREE STANDS FOR THEM AND IN THE END SHOOTING VERY FEW ARROWS THESE SAME ARCHERS HOWEVER HAVE JUMPED AT THE CHANCE TO PARTICIPATE IN 3D TOURNAMENTS THERE THEY CAN STILL SHOOT LOTS OF ARROWS AND GET A LITTLE NEEDED OUTDOOR EXERCISE ABOUT THE SAME AS WALKING NINE HOLES OF GOLF WHILE TRYING TO MASTER A NEW CHALLENGE ALL 3D SHOOTING IS DONE AT UNMARKED YARDAGES WITH THE RAINBOW TRAJECTORY OF MOST BOWS RANGE ESTIMATION IS TRICKY SHOOTERS MUST JUDGE THE DISTANCE OF A TARGET TO WITHIN A FEW YARDS BEFORE THEY HAVE A PRAYER OF HITTING IT AN ARCHER WHO USES HIS 40YARD SIGHT ON A 30YARD TARGET COULD END UP WATCHING HIS ARROW SAIL OVER THE TARGET INTO A SEA OF THICK BRUSH AND AS WITH LIVE WHITETAILED BUCKS AND WILD BOAR THERE ARE NO GLARING BULL'SEYES ON 3D TARGETS SHOOTERS MUST KNOW ENOUGH ABOUT BIGGAME ANATOMY TO PLACE AN ARROW IN A LOCATION THAT WOULD BE A LETHAL HUMANE HIT ON THE REAL MCCOY THESE PLACES ARE MARKED WITH FAINT LINES ON THE TARGET TO ASSIST SCORING BUT THE LINES CAN'T BE SEEN FROM SHOOTING DISTANCE LIKE MOST WILDLIFE 3D TARGETS ARE SELDOM IN THE WIDE OPEN I ENCOUNTERED A STATION THAT FEATURED A PRONGHORNANTELOPE TARGET IN A WOOD LOT THE DISTANCE TO THE BUCK WAS MODEST ABOUT 30 YARDS BUT THE TREES BETWEEN US SEEMED AS THICK AS HAIR HALFWAY TO THE TARGET MY ARROW DEADCENTERED A SMALL OAK WITH A THUNDERING CRASH THE 7 SHAFT WAS TRANSFORMED INTO A MANGLED PIECE OF ALUMINUM DESTINED ONLY FOR THE RECYCLING BIN THE SPORT'S LANDSLIDE POPULARITY HAS OVERTAKEN THE ARCHERY INDUSTRY AS WELL THE SPORT OF 3D HAS DRIVEN US TO SEVERAL THINGS SAYS CRAIG DOUGHERTY VICE PRESIDENT OF GOLDEN EAGLE ARCHERY A LEADING ARCHERYEQUIPMENT MANUFACTURER FOR ONE THING IT HAS PUSHED US TOWARD SPEED SINCE FASTER ARROWS HAVE A FLATTER TRAJECTORY WE'RE TRYING TO DESIGN EQUIPMENT STRONGER BOWS AND LIGHTER ARROWS THAT MAKES RANGE ESTIMATION LESS CRITICAL WE'VE ALSO HAD TO MAKE OUR EQUIPMENT TOUGHER SOME OF THE NEWER HIGHSPEED SETUPS PUT A LOT OF STRESS ON THEIR COMPONENTS WE ALSO NEED TO MAKE OUR EQUIPMENT SO IT HOLDS UP FOR ALL THOSE EXTRA SHOTS SHOOTERS ARE TAKING NOW SEEING THE SPORT'S FAMILY APPEAL COMPANIES LIKE GOLDEN EAGLE ARE ALSO MAKING EQUIPMENT FOR THE NEEDS OF WOMEN AND YOUNG CHILDREN NOT SURPRISINGLY BIG MONEY HAS MADE ITS WAY INTO WHAT STARTED OUT AS A SIMPLE COMPETITION BETWEEN FRIENDS THE ARCHERY SHOOTERS' ASSOCIATION PROAM TOUR HAS A PROJECTED TOTAL PURSE OF 816000 BUT FEW WHO ENTER THE SPORT HAVE DOLLAR SIGNS IN THEIR EYES MOST WILL TAKE UP THE SPORT FOR THE SIMPLE RELAXATION AND ENJOYMENT IT OFFERS AS I LEFT THE COURSE WITH A SMILE ACROSS MY FACE I LOOKED DOWN AT A PARTIALLY EMPTY QUIVER WHERE ARROWS NOW LOST OR MANGLED ONCE HAD BEEN I KNEW RIGHT AWAY THAT I'D BE BACK AFTER A QUICK TRIP TO THE ARCHERY SHOP FOR MORE ARROWS 9306170044 930617 FOREIGN EXCHANGE DESPITE US HOUSING DATA DOLLAR ROSE BOOSTED BY UNCERTAIN JAPANESE POLITICS BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ROSE YESTERDAY AS A RESULT OF POLITICAL UNCERTAINTY IN JAPAN CONTINUING EXPECTATIONS OF INTEREST RATE CUTS IN GERMANY AND POSITIVE SENTIMENT US HOUSING AND INDUSTRIAL DATA THAT WERE WEAKER THAN OR JUST AT LEVELS THAT THE MARKET HAD EXPECTED WERE SHRUGGED OFF HAVING LITTLE IMPACT ON TRADING PLAYERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16570 MARKS UP FROM 16455 MARKS LATE TUESDAY US CURRENCY WAS CHANGING HANDS AT 10645 YEN UP FROM 10575 YEN STERLING WAS TRADING AT 15050 DOWN FROM 15055 ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 10727 YEN AND AT 16572 MARKS OVERALL SENTIMENT FOR THE DOLLAR IS BULLISH SAID KEVIN LAWRIE FOREIGN EXCHANGE MANAGER AT MELLON BANK NA IN PITTSBURGH RECENT REMARKS BY BUNDESBANK OFFICIALS HAVE SUPPORTED THAT SENTIMENT HEIGHTENING EXPECTATIONS OF RATE CUTS AT THURSDAY'S DEUTSCHE BUNDESBANK CENTRAL BANK COUNCIL MEETING MARKET PARTICIPANTS SAID A SENIOR GERMAN GOVERNMENT OFFICIAL'S COMMENTS WEDNESDAY HIGHLIGHTED THE COUNTRY'S ONGOING ECONOMIC WOES THOSE REMARKS ADDED TO MARKET ANTICIPATION THAT GERMAN INTEREST RATES SOON MAY BE EASED AGAIN THUS AIDING THE DOLLAR YESTERDAY SAID CHARLES COSSENTINO A VICE PRESIDENT AT DEUTSCHE GENOSSENSCHAFTSBANK THE SENIOR GERMAN GOVERNMENT SOURCE WHO SPOKE ON CONDITION OF ANONYMITY SAID WESTERN GERMANY'S GROSS DOMESTIC PRODUCT GDP WILL SHRINK IN THE SECOND QUARTER OF 1993 IN THE FIRST QUARTER OF 1993 WESTERN GERMAN GDP CONTRACTED A REAL 15 FROM THE FOURTH QUARTER AND SHRANK 32 FROM A YEAR EARLIER THE OFFICIAL ADDED THAT WHILE HE EXPECTS AN ECONOMIC RECOVERY TO BEGIN GAINING GROUND IN THE SECOND HALF OF THIS YEAR IT PROBABLY WON'T SHOW UP IN STATISTICS UNTIL THE FIRST QUARTER OF 1994 THE PERCEPTION IS THAT THE OFFICIAL'S REMARKS COULD BE PAVING THE WAY FOR A CUT IN RATES MR COSSENTINO SAID THE COMMENTS HELPED START THE DOLLAR'S MOVE HE SAID LOWER RATES IN THEORY WOULD HELP SPUR GERMAN ECONOMIC ACTIVITY BUT MORE IMMEDIATELY THEY WOULD TEND TO WEAKEN THE MARK MAKING INVESTMENTS DENOMINATED IN THE GERMAN CURRENCY LESS ATTRACTIVE TO INVESTORS THE OFFICIAL'S REMARKS LIFTED THE DOLLAR THROUGH SEVERAL IMPORTANT TECHNICAL RESISTANCE LEVELS THUS TRIGGERING OTHER DOLLAR BUYING MR LAWRIE SAID BY CONTRAST US ECONOMIC DATA RELEASED WEDNESDAY HAD LITTLE INFLUENCE ON TRADING MR LAWRIE SAID US HOUSING STARTS ROSE 24 IN MAY FROM APRIL TO A 124MILLIONUNIT ANNUAL RATE THE COMMERCE DEPARTMENT REPORTED THE MARKET HAD EXPECTED A 4 INCREASE US INDUSTRIAL PRODUCTION ROSE 02 IN MAY FROM APRIL IN LINE WITH EXPECTATIONS THESE ARE NOT NUMBERS THE MARKET WOULD LIKE TO FOCUS ON MR LAWRIE SAID THE DOLLAR'S ADVANCES ON THE YEN WEDNESDAY WERE TIED PRIMARILY TO POLITICS PARTICIPANTS SAID MAJOR JAPANESE OPPOSITION PARTIES ARE EXPECTED TO INTRODUCE A NOCONFIDENCE MOTION AGAINST THE GOVERNMENT OF PRIME MINISTER KIICHI MIYAZAWA ON THURSDAY MIYAZAWA'S LIBERAL DEMOCRATIC PARTY LDP EARLIER IN THE WEEK REFUSED TO COMPROMISE ON LEGISLATION AIMED AT REFORMING JAPANESE POLITICS PRECIPITATING THE MOVE FOR THE NOCONFIDENCE VOTE THE POLITICAL UNCERTAINTY LED US AND OTHER FOREIGN INVESTMENT FUNDS ACTIVE IN JAPAN TO SELL BOTH STOCKS AND THE YEN YESTERDAY SAID TOMI KILGORE ASSISTANT TREASURER AT TOYO TRUST & BANKING CO SHORT COVERING PROMPTED BY THE DOLLAR'S REBOUND EXTENDED ITS ADVANCE PLAYERS SAID MR LAWRIE NOTED HOWEVER NO ONE IS SEEING THIS AS A CHANGE IN THE TREND ONLY AS A SHORTTERM CORRECTION THE YEN HAS APPRECIATED ABOUT 16 ON THE DOLLAR SINCE FEBRUARY IN CROSS OR NONDOLLAR TRADING COMMENTS BY THE ANONYMOUS SENIOR GERMAN OFFICAL ALSO DROVE THE YEN UP AGAINST THE MARK DEALERS SAID THE OFFICIAL SAID THAT THE MARK'S WEAKENING AGAINST THE YEN WASN'T A CAUSE OF CONCERN FOR BONN AND THAT THE CURRENT MARKYEN RATE WAS NOT AT ALL INAPPROPRIATE THE STATEMENT GAVE THE IMPRESSION THE YEN COULD STRENGTHEN FURTHER AGAINST THE MARK WITHOUT AROUSING GERMAN COMMENT OR INTERVENTION MR COSSENTINO SAID THE MARK TUMBLED QUICKLY AFTER THE MARKET LEARNED OF THE COMMENT LATE WEDNESDAY IN NEW YORK THE MARK TRADED AT 6424 YEN DOWN MARGINALLY FROM 6425 YEN TUESDAY THE MARK'S SUDDEN DROP AGAINST THE YEN ALSO CONTRIBUTED TO THE GERMAN CURRENCY'S DECLINE AGAINST THE DOLLAR PLAYERS SAID LOOKING AHEAD PLAYERS SAID THE MARKET APPEARS FAIRLY EVENLY SPLIT ON THE LIKELIHOOD OF A REDUCTION IN GERMAN INTEREST RATES AT THE BUNDESBANK COUNCIL MEETING BUT MR COSSENTINO SAID THAT IF THE CENTRAL BANK DOESN'T ADJUST ITS RATES THE DOLLAR ISN'T LIKELY TO DROP OFF SHARPLY AGAINST THE MARK OWING TO THE CONDITION OF THE GERMAN ECONOMY IF THEY DON'T DO IT TODAY THEY WILL HAVE TO DO IT SOON HE SAID IF THE BANK DOES TRIM EITHER ITS 725 DISCOUNT RATE OR 850 LOMBARD RATE THE DOLLAR PROBABLY WILL TEST 16700 MARKS A LEVEL OF SOLID TECHNICAL RESISTANCE IN THE LAST SEVERAL MONTHS HE SAID THE DISCOUNT RATE IS THE LOWEST ONE AT WHICH THE CENTRAL BANK WILL LEND FUNDS THE LOMBARD RATE IS THE EFFECTIVE CEILING ON MONEYMARKET RATES ALTHOUGH THE US CURRENCY'S TECHNICAL TREND AGAINST THE MARK CURRENTLY FAVORS AN UPWARD MOVE IT WILL TAKE SIGNIFICANT NEWS SOMETHING ON THE ORDER OF A GERMAN RATE CUT TO BREACH 16700 MARKS MR COSSENTINO SAID US TRADE BALANCE DATA TO BE RELEASED TODAY AREN'T LIKELY TO HAVE MUCH IMPACT ON DOLLARMARK ACTIVITY BUT COULD HAVE RELEVANCE FOR DOLLARYEN TRADING PARTICIPANTS SAID THE US TRADE DEFICIT IS FORECAST TO HAVE NARROWED TO 886 BILLION IN APRIL FROM A 1021 BILLION GAP IN MARCH ACCORDING TO A SURVEY OF ECONOMISTS BY APDOW JONES A DEFICIT THAT MET EXPECTATIONS OR WAS NARROWER PROBABLY WOULD SUPPORT THE DOLLAR VS THE YEN PLAYERS SAID THEY NOTED THAT CONCERNS ABOUT THE SIZE OF THE US TRADE GAP WITH JAPAN HAVE BEEN CENTRAL TO THE YEN'S RECENT SURGE AGAINST THE DOLLAR 9306170043 930617 MARKETING & MEDIA QVC'S BARRY DILLER HOLDS LUCRATIVE PAY PACKAGE WEST CHESTER PA HOLLYWOOD MAY HAVE SNICKERED WHEN MEDIA MOGUL BARRY DILLER LEFT HOLLYWOOD TO RUN A TV SHOPPING CHANNEL QVC NETWORK INC BUT MR DILLER TO NO ONE'S SURPRISE IS LAUGHING ALL THE WAY TO THE BANK ACCORDING TO QVC'S MOST RECENT PROXY STATEMENT MR DILLER EARNS AN ANNUAL SALARY OF 500000 AND HOLDS STOCK AND OPTIONS THAT COULD GAIN HIM MORE THAN 200 MILLION SINCE MR DILLER JOINED THE COMPANY QVC'S STOCK PRICE HAS MORE THAN DOUBLED TO 6425 AND QVC'S OVERALL MARKET VALUE HAS RISEN BY MORE THAN 15 BILLION MR DILLER RECEIVED SOME 160000 SHARES OF COMMON STOCK VALUED AT 49 MILLION AS AN INCENTIVE TO GET HIM TO BECOME CHAIRMAN OF QVC IN JANUARY THOSE SHARES ARE NOW VALUED AT 103 MILLION IN ADDITION HE WAS GRANTED OPTIONS COVERING SIX MILLION SHARES OF COMMON STOCK BASED ON A PRICE OF 3043 WITH SOME SCALED INCREASES IF HE EXERCISED THOSE OPTIONS MR DILLER COULD REALIZE A PROFIT OF MORE THAN 184 MILLION BASED ON QVC'S CURRENT STOCK PRICE ON TOP OF THIS MR DILLER HAS DOUBLED THE INITIAL 25 MILLION INVESTMENT HE MADE TO BUY ABOUT 833000 QVC SHARES IN DECEMBER 9306170042 930617 FLAPJACK FLIPPER INVENTOR SEBRING HAS A MACHINE TO DO IT THE DROPPER TURNER AND SLIDE MAKE GREAT PANCAKES FAST WHEN HE STICKS AROUND BY JAMES M PERRY STAFF REPORTER OF THE WALL STREET JOURNAL DUNDEE NY EVERY SEVEN SECONDS A PERFECTLY FORMED PANCAKE SLIDES OFF A REVOLVING GRIDDLE ONTO SOMEONE'S PLATE HERE AT THE FLYIN BREAKFAST AT THE DUNDEE FLYING CLUB FANTASTIC SAYS KEVIN OVENSHIRE FROM NEARBY PENN YAN AS HE FILLS HIS PLATE WITH THREE PANCAKES AND MOVES DOWN THE LINE TO PICK UP FRIED EGGS AND SAUSAGES AT THE NEXT COUNTER PILOTS AND VILLAGERS SHOW UP BY THE HUNDREDS TWICE A SUMMER AT THE FLYING CLUB'S LITTLE LEANTO HANGAR A LOT OF THEM COME JUST TO ADMIRE CLARENCE SEBRING'S AWESOME AUTOMATIC AWEJAMAGIC BY 8 O'CLOCK THE TABLES ARE FILLED AND THE DIXIELAND BAND IS ALREADY PLAYING ITS SECOND SET BY NOON WHEN THE BREAKFAST ENDS MR SEBRING AND HIS AMAZING MACHINE WILL HAVE FLIPPED 1546 PANCAKES THE MACHINE TALLIES ITS OWN OUTPUT TOO MR SEBRING THINKS HIS IS THE ONLY AUTOMATIC PANCAKEMAKING MACHINE IN THE COUNTRY BUT HE DOESN'T KNOW FOR SURE ON A GOOD FLYIN BREAKFAST MORNING AS MANY AS 120 PLANES SOME FROM 150 MILES AWAY COME BUMPING DOWN THE RUNWAY DISGORGING PILOTS AND PASSENGERS TO EAT DRINK COFFEE AND TALK ABOUT FLYING HUNDREDS MORE SHOW UP BY CAR AND PICKUP TRUCK MOST OF THEM FROM THIS FINGER LAKES VILLAGE POPULATION 1550 THEY DON'T CARE SO MUCH ABOUT THE AIRPLANES IT'S THE PANCAKES SAYS FLIGHT INSTRUCTOR BOB TILDEN THEY COME TO DUNDEE FOR CLARENCE'S PANCAKES THEY'RE FAMOUS THE 69YEAROLD MR SEBRING IS THAT AMERICAN CLASSIC A SELFTAUGHT MACHINESHOP TINKERER AND INVENTOR ALWAYS LOOKING TO MEET A NEW TECHNICAL CHALLENGE HE GRADUATED FROM HIGH SCHOOL AT 15 AND THAT IS AS FAR AS HE WENT HIS SON TIM 41 HOLDS AN AUTOMOTIVEENGINEERING DEGREE AND SAYS HE PICKED UP ALL HIS MECHANICAL SKILLS FROM DAD ONE OF THE FIRST THINGS HE REMEMBERS IS THE MINIATURE TRAIN HIS FATHER BUILT FOR HIM IN THE BACKYARD YOU COULD GET FOUR OR FIVE KIDS IN IT AND OFF WE'D GO BOY WAS I POPULAR MR SEBRING DOES THESE THINGS FOR FUN I NEVER THINK ABOUT PROFITS HE SAYS IF I TRIED TO SELL THIS STUFF I'D JUST END UP IN A LOT OF LITIGATION HE HAS CONSIDERED TRYING TO PATENT HIS PANCAKE MACHINE BUT FIGURES THAT WOULD COST 3000 MORE THAN IT WOULD BE WORTH HE HAS ALSO BUILT A WORKING REPRODUCTION OF A 1901 OLDSMOBILE VARIOUS THREEWHEELED VEHICLES AND DUNE BUGGIES HE BUILT FROM SCRATCH A MINIATURE CHEVROLET CORVAIR FOR HIS TWO GRANDSONS LIVING NEAR HERE IN THE FLATLANDS AND A FOURSPEED MINIATURE TRACTOR FOR HIS OTHER GRANDSON WHO LIVES IN HILLY COUNTRY WEST OF HERE HE MADE WHAT HE CALLS A FLUGGERHAGGEN A RUBE GOLDBERG CONSTRUCTION THAT WAVES AN AMERICAN FLAG SHOOTS OFF A REVOLVER RINGS A BELL BLINKS A FLASHLIGHT AND PLAYS STARS AND STRIPES FOREVER HE KEEPS IT IN HIS MEMORABILIA ROOM IN THE CELLAR OF THE RANCH HOUSE HERE WHERE HE LIVES WITH HIS WIFE WANDA AND THAT HE BUILT HIMSELF 40 YEARS AGO THE ROOM ALSO CONTAINS A WURLITZER JUKEBOX WHICH WAS PLAYING TED WEEMS'S HEARTACHE THE OTHER DAY AND A PLAYER PIANO THAT AT THE SAME TIME WAS KNOCKING OUT RED ROSES FOR A BLUE LADY YOU DON'T HAVE TO BE CRAZY TO DO ALL THIS SAYS MR SEBRING BUT IT HELPS HE SPENT MOST OF HIS WORKING LIFE AS THE BUILDING AND GROUNDS SUPERINTENDENT AT DUNDEE CENTRAL SCHOOL RETIRED HE IS BACK THERE NOW TEMPORARILY TO OVERSEE THE SCHOOL'S 8 MILLION RESTORATION STILL WHEN PEOPLE THINK OF CLARENCE SEBRING THEY THINK FIRST OF THE AWEJAMAGIC THE GEM OF THE SEBRING COLLECTION IT PICKED UP ITS NAME WHEN MR SEBRING'S GRANDSON DUSTIN TOLD A FRIEND YOU OUGHT TO SEE GRANDPA'S AWEJAMAGIC PANCAKE MACHINE MR SEBRING BEGAN THINKING ABOUT THE MACHINE WHEN HE WAS FLIPPING PANCAKES BY HAND AT FLYIN BREAKFASTS A FEW YEARS AGO THIS IS BORING' SOMEONE SAID WHY DON'T WE HAVE A MACHINE TO DO THIS WORK' AND THEN THIS IDEA JUST POPPED INTO MY HEAD THEY ALWAYS APPEAR IN YOUR HEAD THAT WAY IT JUST CAME TO ME HOW SUCH A MACHINE WOULD WORK HE KNEW HE WOULD NEED A ROTATING GRIDDLE AND HE GUESSED IT WOULD BE RUN BY A QUARTERHORSEPOWER ELECTRIC ENGINE HE KNEW THE GRIDDLE WOULD BE FIRED BY PROPANE BUT HOW LONG WOULD IT TAKE A PANCAKE TO GO AROUND ON THE GRIDDLE UNTIL IT WAS DONE HE CHECKED THAT OUT IN A FRYING PAN ON HIS OWN STOVE TWO MINUTES TOTAL HE SAYS ONE MINUTE ON EACH SIDE WITH THE GRIDDLE SET AT 250 DEGREES HIS GRIDDLE MADE OF QUARTERINCH STEEL PLATE IS MOUNTED ON AN OLD AUTOMOBILE HUB WITH A BRAKE DRUM COMPRESSED AIR RUNS THREE KEY PIECES OF EQUIPMENT THE DROPPER THE MACHINE THAT SQUIRTS THE BATTER ONTO THE GRIDDLE THE TURNER THE SPATULA THAT FLIPS THE PANCAKES AND THE SLIDE THE METAL SCOOP THAT LIFTS THE FINISHED PANCAKES UP AND SENDS THEM ON THEIR WAY THE PANCAKES ARE COOKED FIRST FOR A MINUTE ON THE INNER RIM OF THE GRIDDLE THE SPATULA AT THE END OF A METAL ROD PICKS THEM UP AND FLIPS THEM TO THE OUTER EDGE OF THE GRIDDLE THE SCOOP LOWERS ITSELF INTO POSITION AS EACH PANCAKE COMPLETES ITS SECOND ONEMINUTE ROTATION WHEN THE MACHINE WAS BEING PERFECTED THE SPATULA TENDED TO FLIP THE PANCAKES ON THE FLOOR MR SEBRING MADE ADJUSTMENTS SO THE SPATULA MOVED MORE SLOWLY IN THOSE FINAL CRITICAL MOMENTS WHEN IT WAS ACTUALLY DOING THE FLIP IT'S JUST THE WAY YOU'D DO IT YOURSELF IF YOU WERE FLIPPING PANCAKES MR SEBRING SAYS YOU SLOW DOWN AS YOU MAKE THAT FINAL MOVE THE ADJUSTMENT DID THE TRICK NOW EACH PANCAKE MAKES A NICE SPLATTING NOISE AS IT HITS THE OUTSIDE RING OF THE GRIDDLE EVERY NOW AND AGAIN PROBABLY BECAUSE THE GRIDDLE NEEDS A LITTLE GREASE PANCAKES START TO STICK AND THE SCOOP JAMS AS IT TRIES TO PICK THEM UP MR SEBRING IS ALWAYS READY TO FLIP A SWITCH ON HIS CONTROL PANEL TO SHUT THE MACHINE DOWN TO PREVENT FLAPJACK GRIDLOCK FROM TIME TO TIME VARIOUS ADMIRERS OF THE AWEJAMAGIC HAVE DECIDED IT WOULD BE A GOOD IDEA TO RENT OR BORROW THE 250POUND CONTRIVANCE AND TAKE IT ON THE ROAD BUT IT DOESN'T WORK THAT WAY SAYS BOB TILDEN A MEMBER OF THE FLYING CLUB YOU NEED CLARENCE HE'S THE ONLY ONE WHO KNOWS WHAT TO DO WHEN THE WIND COMES UP AND BLOWS IN AND COOLS DOWN THE GRIDDLE AT ONE OF THE FLYIN BREAKFASTS LAST SUMMER SOMEONE SUGGESTED THAT IT WAS PRETTY BORING CRACKING AND FRYING ALL THOSE EGGS FOR FIVE STRAIGHT HOURS PREDICTABLY MR SEBRING'S MENTAL LIGHT BULBS BEGAN FLASHING AGAIN AND SO NOW DOWN IN HIS CELLAR SHOP A NEW AND STILL UNNAMEDMACHINE IS BEGINNING TO TAKE SHAPE AN AUTOMATIC FRIEDEGGMAKING MACHINE TROUBLE IS THE EGG TENDS TO SPREAD OUT UNEVENLY ON THE GRIDDLE I WANT A PERFECT CIRCLE EACH CIRCLE IDENTICAL TO THE NEXT SAYS MR SEBRING BUT HE ALREADY HAS A PLAN IN MIND TO FIX THAT AND A VISION OF THE FUTURE EVERY EGG WILL BE COOKED OVER LIGHTLY' AND EVERY ONE OF THEM WILL BE EXACTLY FOUR INCHES IN DIAMETER THAT'S THE WAY MOST FOLKS LIKE THEM MR SEBRING HAS CONCLUDED HE EXPECTS TO FIRE UP THE MACHINE AT THE DUNDEE FLYING CLUB NEXT SUMMER 9306170041 930617 INTERNATIONAL REPORTER'S NOTEBOOK BELFAST RESIDENTS HAVE TURNED NAME GAMES INTO AN ART BY TONY HORWITZ STAFF REPORTER OF THE WALL STREET JOURNAL BELFAST NORTHERN IRELAND AS HE DRIVES INTO A STAUNCHLY PROTESTANT AREA THE CATHOLIC TAXI DRIVER INTONES A NAME ALAN DODDS ALAN DODDS ALAN DODDS HE MURMURS AS IF RECITING THE ROSARY ALAN DODDS IS THE CABBIE'S IMAGINARY ALTER EGO UNLIKE THE CABBIE HE'S GOT A PROTESTANTSOUNDING NAME AND A PROTESTANTSOUNDING ADDRESS THE CABBIE IMPRINTS MR DODDS ON HIS BRAIN IN SELFDEFENSE WHENEVER HE CROSSES TO THE OTHER SIDE THAT WAY HE EXPLAINS IF I GET IN A BAD SPOT AND SOMEONE ASKS WHO I AM I CAN BLURT OUT MY PROTESTANT NAME SUCH MIND GAMES ARE SECOND NATURE IN BELFAST A CITY WHOSE COMBATANTS ARE MIRROR IMAGES OF ONE ANOTHER IN EMBATTLED DISTRICTS CATHOLICS AND PROTESTANTS LIVE ONLY BLOCKS APART IN IDENTICAL BRICK ROW HOUSES IN SPEECH AND APPEARANCE THE TWO GROUPS ARE INDISTINGUISHABLE YET THEY DWELL IN VIRTUAL APARTHEID MIXING ONLY IN NEUTRAL ZONES SUCH AS DOWNTOWN MALLS AND IN THEIR IMAGINATIONS I'M CURIOUS LIKE BUT I'M TOO AFRAID TO DO IT SAYS ROBERT HUTCHISON A 19YEAROLD PROTESTANT EXPLAINING WHY HE'S NEVER DRIVEN DOWN FALLS ROAD IN CATHOLIC WEST BELFAST A FEW HUNDRED YARDS FROM HIS OWN HOME MR HUTCHISON ISN'T EASILY SCARED HE'S A VETERAN JOYRIDER WHO HAS IGNORED POLICE BARRICADES AND WHO HAS BEEN BADLY BEATEN FOR DEFYING PROTESTANT GUNMEN BUT THAT'S NOTHING COMPARED WITH A DAYTIME DRIVE ON THE FALLS CATHOLIC YOUTHS FEEL THE SAME WAY ABOUT SHANKILL ROAD WHICH RUNS PARALLEL TO THE FALLS AND IS THE HAUNT OF HARDLINE PRODS MIXED WITH FEAR IS THE NOTION THAT PROTESTANTS ARE POSH ACROSS NORTHERN IRELAND UNEMPLOYMENT IS LOWER AND INCOME HIGHER AMONG PROTESTANTS BUT THERE'S LITTLE DISPARITY IN THE WORKINGCLASS AREAS THAT FORM THE CONFLICT'S FRONT LINE IN FACT SUCH YOUTHS DO MEET THEIR OPPOSITES IN A CASUAL AND INTIMATE WAY THOUGH NOT ONE THAT COMMUNITY LEADERS WOULD APPLAUD MR HUTCHISON THE PROTESTANT YOUTH SAYS HE'S GOTTEN TO KNOW CATHOLICS HIS OWN AGE ON TWO OCCASIONS IN JAIL AND AT ECSTASY RAVES THE LATTER ARE HUGE PARTIES AT WHICH YOUTHS FROM BOTH GROUPS DANCE TO BLARING TECHNOMUSIC IMBIBING THE DRUG ECSTASY RATHER THAN BEER IT MAKES YOU MELLOW MR HUTCHISON SAYS OF THE DRUG YOU JUST START TALKING AND FEEL FRIENDLY IF SCHIZOPHRENIA COMES WITH THE TURF IN BELFAST SO TOO DOES A GNAWING WATCHFULNESS ALMOST 3100 PEOPLE HAVE DIED IN POLITICAL VIOLENCE SINCE 1969 AND HARDLY A WEEK PASSES WITHOUT THE KILLING OR MAIMING OF A PASSERBY THIS OFTEN RANDOM CARNAGE HAS GIVEN AN EDGE OF WARY DISTRUST TO WHAT IS OTHERWISE A WELCOMING AND GREGARIOUS CITY PERSONAL QUESTIONS IN PARTICULAR ARE PARRIED WITH CARE AS THE TWO SIDES CAN'T DISTINGUISH EACH OTHER BY DRESS OR SPEECH THEY RELY ON OTHER HINTS SUCH AS WHAT HOBBIES YOU PURSUE OR WHAT TEAMS YOU SUPPORT THE MOST RELIED UPON CLUES THOUGH THEY AREN'T ALWAYS RELIABLE ARE NAMES BROADLY SPEAKING A SEAMUS OR PATRICK OR O'CONNELL IS PROBABLY CATHOLIC A WILLIAM OR CHARLES OR SMITH IS PROBABLY PROTESTANT AS A RESULT THOSE WHO WORK IN THE LINE OF FIRE SUCH AS TAXI DRIVERS AND AMBULANCE CREWS AREN'T REQUIRED TO WEAR BADGES OR DISPLAY TAGS THAT REVEAL THEIR NAMES AS TAXIS OFTEN ARE HIJACKED FOR CAR BOMBINGS SOME CABBIES DON'T EVEN CARRY A SIGN ON TOP RELYING INSTEAD ON RADIO CALLS AND ALMOST EVERY CABBIE KNOWS EVASIVE MANEUVERS ONE DRIVER TELLS HOW HE BROKE OFF HIS KEY IN THE IGNITION WHEN A GUNMAN ASKED FOR IT ANOTHER SAYS THAT IF HE'S CALLED TO A CULDESAC HE TURNS THE CAR AROUND AND FACES OUT BEFORE HONKING THE HORN SO HE CAN ESCAPE QUICKLY SOME DAYS MY MIND'S GONE AND I CAN'T SLEEP WITHOUT NERVE PILLS SAYS ANTHONY WEATHERALL WHO HAS TWICE HAD HIS TAXI HIJACKED PILLS ARE ONE WAY TO BUFFER THE STRAIN EUPHEMISM AND IRONY ARE ANOTHER THE BLOODY WAR IS KNOWN MODESTLY AS THE TROUBLES GUNMEN IN BALACLAVAS ARE HARD BOYS OR HAIRY MEN THE ARMORPLATED LAND ROVERS IN WHICH POLICE PATROL ARE GREY TAXIS PERHAPS MOST ABSURDLY THE 15FOOT WALL OF STEEL THAT SEPARATES THE WORSTFOUGHT STREETS IS CALLED THE PEACE LINE ONE RESULT OF THIS AND OTHER DEFENSES IS A COOL DETACHMENT FROM REALITY EVEN SMALL CHILDREN DON'T FLINCH WHEN ARMORED PERSONNEL CARRIERS SCREECH TO A HALT AND SOLDIERS IN CAMOUFLAGE FATIGUES LEAP OUT FOR ROUTINE PATROLS RESIDENTS SEEM SURPRISED WHEN A VISITOR REMARKS ON BELFAST'S CAGED STOPLIGHTS TO REPEL STONES AND SHOPFRONT BOMB SALES AT WHICH BOMBCHARRED GOODS ARE SOLD AT A DISCOUNT PEOPLE HERE JUST STOP TAKING THINGS IN THEY GO NUMB SAYS GERRY LOUGHREY A PSYCHIATRIST WHO TREATS POSTTRAUMATIC STRESS CONTRARY TO EXPECTATIONS HE ADDS STUDIES SHOW THAT ALCOHOL AND DRUG ABUSE AREN'T WORSE THAN ELSEWHERE IN EUROPE DR LOUGHREY ALSO FINDS THAT THOSE TRAUMATIZED BY THE VIOLENCE RECOVER AFTER A YEAR OR SO IN CONTRAST TO SOME VIETNAM VETERANS WHO HAVE NIGHTMARES AND OTHER SYMPTOMS FOR YEARS AND HE FINDS AMERICA'S SKITTISHNESS JUST AS SURPRISING AS VISITORS FIND BELFAST'S THICK SKIN LAST YEAR HE VISITED ORANGE COUNTY CALIF A FEW MONTHS AFTER THE LOS ANGELES RIOTS PEOPLE WERE STILL TWITCHY AND THREATENED EVEN THOUGH THE RIOTS WERE MILES AWAY AND SEVERAL MONTHS PAST HE LAUGHS IT SEEMED SO ODD TO ME 9306170040 930617 BUSINESS BRIEF TOPPS CO FISCAL 1STQUARTER NET FELL 25 ON FLAT SALES TOPPS CO REPORTED A 25 DROP IN FISCAL FIRSTQUARTER NET INCOME ON FLAT SALES CITING CONTINUED WEAKNESS IN THE BASEBALL CARD MARKET THE MARKETER OF SPORTS CARDS COMIC BOOKS AND OTHER COLLECTIBLES IN NEW YORK POSTED NET OF 94 MILLION OR 20 CENTS A SHARE FOR THE PERIOD ENDED MAY 29 DOWN FROM 125 MILLION OR 26 CENTS A SHARE A YEAREARLIER TOPPS SAID THAT CONSISTENT WITH PREVIOUS ANNOUNCEMENTS CONCERNING CONDITIONS IN THE SPORTSCARD MARKET IT REDUCED ITS PRODUCTION OF BASEBALL CARDS DURING THE PERIOD IT SAID THE DECLINE WAS OFFSET BY SALES OF BASKETBALL PRODUCTS WHICH WERE NOT MARKETED IN THE YEAREARLIER PERIOD THE COMPANY'S SALES FOR THE LATEST QUARTER WERE 763 MILLION COMPARED WITH 764 MILLION A YEAR EARLIER TOPPS SHARES CLOSED OFF 125 CENTS YESTERDAY TO 9875 IN LATE TRADING ON THE NATIONAL OVERTHECOUNTER MARKET 9306170039 930617 BUSINESS BRIEF COMMERCIAL FEDERAL CORP SALE OR MERGER OF COMPANY IS SOUGHT BY A SHAREHOLDER CAI CORP A DALLAS FIRM WITH A 993 STAKE IN COMMERCIAL FEDERAL CORP OF OMAHA NEB IS SEEKING A SALE OR MERGER OF THE COMPANY IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION CAI SAID IT INTENDS TO SOLICIT PROXY MATERIALS AT THE ANNUAL MEETING FOR APPROVAL OF A PROPOSAL WHERE THE COMPANY WILL RETAIN AN INVESTMENT BANKING FIRM TO SOLICIT OFFERS TO ACQUIRE COMMERCIAL FEDERAL CAI SAID IT WILL ALSO SEEK THE ESTABLISHMENT OF A COMMITTEE OF INDEPENDENT DIRECTORS TO RECOMMEND TO THE FULL BOARD FOR APPROVAL THE BEST AVAILABLE OFFER TO ACQUIRE COMMERCIAL FEDERAL THAT IS FAIR AND IN THE BEST INTERESTS OF SHAREHOLDERS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY COMMERCIAL FEDERAL SHARES JUMPED 1875 TO CLOSE AT 23625 IN OMAHA A COMMERCIAL FEDERAL SPOKESMAN DIDN'T RETURN A PHONE CALL SEEKING COMMENT COMMERCIAL FEDERAL HAS ASSETS OF ABOUT 477 BILLION 9306170038 930617 BUSINESS BRIEF BEASLEY BROADCAST GROUP RADIO STATION IN LOS ANGELES WILL BE SOLD TO INFINITY BEASLEY BROADCAST GROUP SAID IT AGREED TO SELL ITS FLAGSHIP RADIO STATION KRTHFM IN LOS ANGELES TO INFINITY BROADCASTING CORP OF NEW YORK FOR 110 MILLION BEASLEY PURCHASED KRTH AND ANOTHER LOS ANGELES RADIO STATION FOR 866 MILLION FOUR YEARS AGO THE VALUE OF KRTH AN OLDIES MUSIC STATION WAS ABOUT 635 MILLION AT THAT TIME SAID BEASLEY A NAPLES FLA BROADCASTING CONCERN CONTROLLED BY GEORGE G BEASLEY THE LOS ANGELES MARKET IS ONE OF THE FEW PLACES WHERE RADIO STATION VALUES CAN STILL COMMAND A MULTIPLE OF TEN TIMES CASH FLOW MR BEASLEY SAID HE PREDICTED THAT THE KRTH TRANSACTION WHICH IS ALL CASH WOULD HAVE A MAJOR IMPACT ON FINANCIAL VALUES FOR RADIO STATIONS BEASLEY SAID IT EXPECTS THE SALE SUBJECT TO FEDERAL COMMUNICATIONS COMMISSION APPROVAL TO BE COMPLETED IN DECEMBER 9306170037 930617 WHO'S NEWS AMERITECH NAMES NOTEBAERT TO SUCCEED WEISS NEXT YEAR AS CHAIRMAN AND CHIEF BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL AMERITECH CORP TAPPED RICHARD C NOTEBAERT ONE OF THREE VICE CHAIRMEN TO SUCCEED WILLIAM L WEISS WHEN HE RETIRES NEXT MAY AS CHAIRMAN AND CHIEF EXECUTIVE IN THE MEANTIME MR NOTEBAERT WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THE CHICAGOBASED REGIONAL BELL TELEPHONE COMPANY UNTIL BEING NAMED A VICE CHAIRMAN IN JANUARY MR NOTEBAERT HAD BEEN PRESIDENT OF AMERITECH SERVICES AND BEFORE THAT HEADED THE ILLINOIS BELL TELEPHONE UNIT AND WAS PRESIDENT OF AMERITECH MOBILE COMMUNICATIONS THE COMPANY'S CELLULAR TELEPHONE UNIT MR NOTEBAERT 45 YEARS OLD REPRESENTS A NEW GENERATION OF MANAGER HE PLAYED AN IMPORTANT ROLE IN AMERITECH'S EFFORT LAST YEAR TO START A CULTURAL CHANGE AT THE COMPANY AND STILL VIEWS HIS TOP CHALLENGE AS REPLACING AMERITECH'S CORPORATE MINDSET OF A TELEPHONE MONOPOLY WITH A COMPETITIVE CUSTOMERFOCUSED ORIENTATION THE RESULT HE SAID IN A CONFERENCE CALL WITH REPORTERS LATE YESTERDAY SHOULD BE A COMPANY THAT DOESN'T JUST PROVIDE GREAT SERVICES BUT SERVES ITS CUSTOMERS WELL MR NOTEBAERT SAID HOWEVER THAT HE DOESN'T EXPECT THE COMPANY TO MAKE ANY ABRUPT CHANGES UNDER HIS LEADERSHIP WE HAVE BEEN REDEFINING THE BUSINESS BOTH FROM A CULTURAL AND STRUCTURAL POINT OF VIEW AND WILL MAINTAIN THE SAME COURSE FOR THE FUTURE HE SAID AMERITECH'S TWO REMAINING VICE CHAIRMEN RICHARD H BROWN AND LOUIS J RUTIGLIANO BOTH OF WHOM HAD BEEN CONSIDERED CONTENDERS FOR THE CHAIRMANSHIP WILL CONTINUE TO REPORT TO MR WEISS MR WEISS SAID MR BROWN 46 WILL SPEND MORE TIME ON AMERITECH'S PUBLIC POLICY AGENDA WHILE MR RUTIGLIANO 54 WILL FOCUS ON STRATEGY DEVELOPMENT AND INTERNATIONAL ACTIVITIES THE COMPANY ALSO SAID BARRY K ALLEN 44 WILL BE PRESIDENT OF ILLINOIS BELL SUCCEEDING MR BROWN MR ALLEN CURRENTLY PRESIDENT OF WISCONSIN BELL WILL CONTINUE AS HEAD OF AMERITECH'S ADMINISTRATIVE TEAM BRONSON J HAASE 49 SUCCEEDS MR ALLEN AT WISCONSIN BELL HE RECENTLY WAS NAMED VICE PRESIDENT OF BUSINESS SALES FOR AMERITECH'S NEW ENHANCED BUSINESS SERVICES UNIT AT MICHIGAN BELL JAMES E WILKES 55 WILL BECOME PRESIDENT SUCCEEDING ROBERT L HURST WHO WILL BE FULLTIME PRESIDENT OF AMERITECH'S NETWORK SERVICES UNIT THE CHANGES ARE EFFECTIVE JULY 1 EARLIER THIS YEAR AMERITECH ANNOUNCED IT WOULD USE THE SINGLE BRAND NAME AMERITECH TO MARKET ITS SERVICES AND THAT IT WOULD REORGANIZE INTO BUSINESS UNITS SERVING SEPARATE MARKET SEGMENTS THE NAME CHANGE IS EXPECTED TO BEGIN IN THE THIRD QUARTER MR NOTEBAERT PREDICTED THAT AMERITECH WILL BE ANNOUNCING ALLIANCES WITH OTHER COMPANIES IN THE COMMUNICATIONS BUSINESS BUILDING ON CURRENT TRENDS AMONG THOSE COMPANIES AMERITECH HE SAID IS HEAVILY FOCUSED ON ITS CORE BUSINESS AND IS LOOKING FOR ALLIANCES TO SUPPORT THAT BUSINESS AND MEET CUSTOMER NEEDS SOME ALLIANCES HE SUGGESTED WOULD BE IN THE EMERGING FIELD OF MULTIMEDIA SERVICES WITHIN ITS MIDWESTERN TERRITORY HE ALSO HELD OUT THE POSSIBILITY OF OTHER ALLIANCES WITHIN THE US AND OVERSEAS ALONG WITH THE MANAGEMENT CHANGES THE AMERITECH BOARD ALSO ELECTED TWO NEW MEMBERS SHELDON B LUBAR FOUNDER AND CHAIRMAN OF LUBAR & CO AN INVESTMENT BANKING AND VENTURE CAPITAL FIRM AND A BARRY RAND EXECUTIVE VICE PRESIDENT OF OPERATIONS FOR XEROX CORP THEIR ELECTIONS INCREASE THE BOARD TO 15 MEMBERS 9306170036 930617 BUSINESS BRIEF ALZA CORP CONCERN SAYS 2NDPERIOD NET MAY FALL BELOW FORECASTS ALZA CORP SAID EARNINGS FOR THE SECOND QUARTER COULD FALL BELOW ANALYSTS' EXPECTATIONS BECAUSE OF FIRSTQUARTER STOCKPILING BY WHOLESALERS OF ITS WIDELY USED HEART DRUG A MAJOR SOURCE OF PROFIT IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ALZA SHARES PLUNGED 2375 OR 88 TO 2450 THE PALO ALTO CALIF BIOTECHNOLOGY COMPANY SAID ROYALTIES AND FEES WHICH MAKE UP MOST OF ITS NET INCOME COULD BE 5 MILLION TO 8 MILLION LOWER THAN THE 325 MILLION REPORTED IN THE YEAREARLIER QUARTER THE COMPANY SAID THE MAIN REASON FOR THE DECREASE WAS THAT WHOLESALERS RUSHED TO BUY PROCARDIA XL DEVELOPED BY ALZA AND MARKETED BY PFIZER INC BEFORE ITS PRICE WAS RAISED IN FEBRUARY BUT ALZA SAID PRESCRIPTION LEVELS FOR THE DRUG CONTINUE TO INCREASE INDICATING A LONGTERM DEMAND THE COMPANY DIDN'T SAY HOW MUCH LOWER EARNINGS MIGHT BE EXCEPT TO NOTE THAT ANALYSTS HAD FORECAST NET INCOME OF 21 CENTS TO 27 CENTS A SHARE A YEAR EARLIER NET WAS 168 MILLION OR 21 CENTS A SHARE ALZA CORP'S SECONDQUARTER INCOME FROM ROYALTIES AND FEES COULD BE 5 MILLION TO 8 MILLION LOWER THAN THE 325 MILLION REPORTED FOR THE FIRST QUARTER AN ARTICLE YESTERDAY INCORRECTLY SAID THE INCOME FROM THESE SOURCES COULD BE BELOW THE YEAREARLIER PERIOD'S 9306170034 930617 WORLD MARKETS TOKYO STOCKS RETREAT ON GROWING UNCERTAINTY ABOUT POLITICAL IMBROGLIO LONDON PRICES RISE A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS' RETREAT CONTINUED WEDNESDAY AS SENTIMENT WAS DEPRESSED BY GROWING UNCERTAINTY ABOUT JAPANESE POLITICAL DEVELOPMENTS LONDON SHARES ROSE ON ECONOMIC AND TECHNICAL FACTORS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10637 DOWN 061 REFLECTING DECREASES IN EUROPEAN AND ASIA/PACIFIC MARKETS AND A RISE IN AMERICAN MARKETS MEDICAL SUPPLIES STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 8372 UP 130 OR 16 WITH ABBOTT LABORATORIES OF THE US POSTING A 38 GAIN IN ITS LOCAL CURRENCY OIL DRILLING STOCKS TRAILED AT 13096 DOWN 425 OR 31 WITH ARABIAN OIL OF JAPAN SLIDING 65 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DIVED 35147 POINTS TUESDAY DROPPED 14346 TO 1990242 ITS FIRST FINISH BELOW 20000 SINCE LATE APRIL EARLY THURSDAY THE NIKKEI INDEX FELL 6405 POINTS TO 1983837 WEDNESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 370 MILLION SHARES LITTLE CHANGED FROM 3704 MILLION SHARES ON TUESDAY LOSERS FAR OUTSTRIPPED GAINERS 909154 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH PLUNGED 3958 POINTS TUESDAY SKIDDED 1974 OR 12 TO 160014 THE US DOLLAR REBOUNDED AGAINST THE YEN HALTING THE JAPANESE CURRENCY'S RELENTLESS ADVANCE IN FOREIGNEXCHANGE DEALINGS THE FOCUS SWITCHED FROM THE CURRENCY SITUATION TO THE CONFUSED SITUATION IN JAPAN'S POLITICAL ARENA WHICH MANY INVESTORS VIEWED FROM THE SIDELINES THE RULING LIBERAL DEMOCRATIC PARTY WAS IN DISARRAY ABOUT HOW TO PURSUE ELECTORALSYSTEM OVERHAUL AND OPPOSITION PARTIES WERE MOVING FOR A VOTE OF NO CONFIDENCE IN THE GOVERNMENT PRIME MINISTER KIICHI MIYAZAWA'S INABILITY TO FORGE LDP CONSENSUS FOR A COMPROMISE WITH THE OPPOSITION ON REFORM IN THE WAKE OF POLITICAL SCANDALS WAS THREATENING TO PROMPT A REVOLT IN THE RULING PARTY WHICH COULD SPARK ELECTIONS AMID SIGNS OF PANIC SELLING JAPANESE SECTORS THAT HAD PERFORMED WELL IN RECENT DAYS SUCH AS SHARES OF BANKING AND SECURITIES FIRMS FELL SHARPLY BUT WITH THE YEN DROPPING FROM RECENT RECORD HIGHS AGAINST THE DOLLAR BLUECHIP EXPORTERS MADE UP SOME LOST GROUND IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 130 POINTS TO 28830 THE FT 30STOCK INDEX ADDED 29 POINTS TO 22532 VOLUME WAS 6073 MILLION SHARES COMPARED WITH 5123 MILLION SHARES A DAY EARLIER MANY INVESTORS BELIEVED BRITAIN WILL HAVE TO LOWER INTEREST RATES TO STIMULATE ECONOMIC GROWTH A BASE LENDING RATE LOWER THAN THE CURRENT 6 COULD BE NEEDED TO MAINTAIN THE POUND'S WEAKNESS TO ENSURE BRITISH EXPORTS REMAIN COMPETITIVE AS RATES ARE FALLING IN EUROPE THE MARKET'S HOPES FOR EASED MONETARY POLICY WERE EGGED ON BY DATA ON MAY RETAIL SALES WHICH FELL A PROVISIONAL SEASONALLY ADJUSTED 02 FROM APRIL WHEN A 01 RISE HAD BEEN EXPECTED MEANWHILE THE FTSE 100 INDEX'S 2880 LEVEL WHICH PREVIOUSLY WAS PERCEIVED AS A RESISTANCE LEVEL WAS TERMED BY CHART TRACKERS AS A NEW SUPPORT LEVEL WITH RESISTANCE NOW SEEN AT 2920 IN FRANKFURT STOCK PRICES ROSE IN UNENTHUSIASTIC TRADING AS MANY INVESTORS STAYED ON THE SIDELINES AWAITING NEWS ON INTEREST RATES THE DAX 30STOCK INDEX ADDED 546 POINTS TO 168956 WITH CHEMICAL SHARES THE STANDOUT AMONG GAINERS MANY PARTICIPANTS WERE MARKING TIME TO SEE WHETHER GERMANY'S CENTRAL BANK WOULD LOWER RATES TODAY THEY ALSO WERE HOLDING BACK AHEAD OF TOMORROW'S SOCALLED TRIPLEWITCHING SESSION WITH EXPIRATIONS OF JUNE INDEX FUTURES INDEX OPTIONS AND STOCK OPTIONS A QUARTERLY OCCURRENCE PARIS SHARES JUMPED HELPED BY GROWING SPECULATION THAT THE GERMAN BUNDESBANK THE CENTRAL BANK MIGHT CUT INTEREST RATES TODAY AND BY ENCOURAGING US ECONOMIC DATA THAT QUELLED FEARS ABOUT A US RATE INCREASE IN AMSTERDAM PRICES ADVANCED ON THE DOLLAR'S RALLY AND ON HOPES FOR AN INTERESTRATE EASING TODAY IN THE NETHERLANDS MADRID SHARES EDGED UP ON OPTIMISM THAT GERMANY WILL CUT LENDING RATES STOCKHOLM EQUITIES ADVANCED BUOYED BY GAINS FOR FORESTSECTOR SHARES ON THE DOLLAR'S REBOUND ZURICH STOCKS STAGED A TECHNICAL RECOVERY AND A STRONGER DOLLAR SPARKED INTEREST IN DOLLARSENSITIVE MULTINATIONALS BRUSSELS STOCKS ROSE ACROSS THE BOARD BOLSTERED BY LOWER LONGTERM INTEREST RATES IN MILAN SHARES ENDED BROADLY LOWER WITH LOSERS OUTNUMBERING GAINERS 2 TO 1 AFTER THE AGROINDUSTRIAL CHEMICAL AND ENERGY COMPANY FERRUZZI FINANZIARIA PLUNGED 18 ONE DAY AFTER ITS MAIN OPERATING UNIT MONTEDISON PLUMMETED 20 INVESTORS CONTINUED TO BE JITTERY ABOUT THE COMING FINANCIAL AND INDUSTRIAL RESTRUCTURING PLAN FOR THE GIANT FERRUZZI GROUP SINGAPORE'S DECLINE EXTENDED THE MARKET'S LOSING STRING TO FOUR SESSIONS SEOUL STOCKS SNAPPED A FIVEDAY LOSING STREAK WITH WINNERS LED BY PHARMACEUTICAL AND CHEMICAL ISSUES AMONG CORPORATE DEVELOPMENTS IN TOKYO DAIWA HOUSE INDUSTRY FELL 10 YEN TO 1520 YEN 1438 THE HOME BUILDER'S CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 FELL 17 TO 8301 BILLION YEN 7852 MILLION FROM A YEAR EARLIER KAJIMA SKIDDED 14 OR 16 TO 846 THE CONSTRUCTION COMPANY'S CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 TUMBLED 32 TO 7864 BILLION YEN FOR THE CURRENT YEAR KAJIMA PREDICTED PRETAX PROFIT WILL PLUMMET 49 TO 40 BILLION YEN BECAUSE OF AN EXPECTED DROP IN ORDERS FOR CONSTRUCTION PROJECTS IN LONDON GRANADA GROUP ROSE 6 PENCE OR 15 TO 415 PENCE 629 EXCEEDING MARKET EXPECTATIONS THE LEISURE CONGLOMERATE'S PRETAX PROFIT FOR THE 26 WEEKS ENDED MARCH 27 CLIMBED 72 TO 681 MILLION 1032 MILLION FROM A YEAREARLIER 397 MILLION RESTATED TO COMPLY WITH NEW ACCOUNTING RULES ON GAINS AND LOSSES ON THE SALE OF BUSINESSES THE INTERIM DIVIDEND INCREASE OF 10 TO 3025 PENCE A SHARE WAS IN LINE WITH PREVIOUS ESTIMATES NFC DECLINED 8 OR 31 TO 249 EVEN THOUGH THE FREIGHT HAULER'S PRETAX PROFIT FOR THE 28 WEEKS ENDED APRIL 17 MORE THAN DOUBLED TO 866 MILLION FROM 372 MILLION A YEAR EARLIER THE INTERIM DIVIDEND OF 280 PENCE A SHARE IS UP 37 IN PARIS CLUB MEDITERRANNEE ROSE 2 FRENCH FRANCS TO 348 FRANCS 6285 THE RESORT COMPANY'S US UNIT CLUB MED INC SAID GROUP PROFIT FOR THE SECOND QUARTER ENDED APRIL 30 INCREASED 28 TO 213 MILLION SUEZ GAINED 44 OR 15 TO 2998 THE HOLDING COMPANY TOLD SHAREHOLDERS IT EXPECTS TO RETURN TO PROFITABILITY WITH MODEST EARNINGS THIS YEAR AND A MUCH BIGGER IMPROVEMENT NEXT YEAR LAST YEAR SUEZ HAD A NET LOSS OF 187 BILLION FRANCS 3377 MILLION 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 9306170033 930617 WHO'S NEWS WORLD BANK CHIEF ECONOMIST WASHINGTON ISRAELI ECONOMIST MICHAEL BRUNO WAS NAMED CHIEF ECONOMIST AND VICE PRESIDENT OF DEVELOPMENT ECONOMICS AT THE WORLD BANK FILLING A VACANCY CREATED BY LAWRENCE SUMMERS'S DEPARTURE FOR A SENIOR POST AT THE US TREASURY MR BRUNO 61 YEARS OLD A NATIVE OF GERMANY AND CITIZEN OF ISRAEL WILL ASSUME THE CHIEF ECONOMIST'S POSITION ON SEPT 1 A FORMER GOVERNOR OF THE BANK OF ISRAEL MR BRUNO NOW TEACHES AT HEBREW UNIVERSITY 9306170032 930617 WHO'S NEWS WEYERHAEUSER CO WEYERHAEUSER CO TACOMA WASH RICHARD H SINKFIELD 50 YEARS OLD A PARTNER WITH THE LAW FIRM OF ROGERS & HARDIN IN ATLANTA WAS ELECTED TO FILL A VACANCY ON THE BOARD OF THE FOREST PRODUCTS CONCERN 9306170031 930617 WHAT'S NEWS WORLDWIDE THE SENATE BROKE A DEADLOCK ON CAMPAIGNFINANCE LEGISLATION DEMOCRATS ENDED A GOP FILIBUSTER AGAINST THE BILL BY WATERING DOWN PUBLICFINANCING PROVISIONS AND LURING A HANDFUL OF REPUBLICAN MODERATES THE ACTION CLEARED THE WAY FOR PASSAGE TODAY OF THE MEASURE WHICH WOULD CHANGE THE WAY CANDIDATES RAISE AND SPEND MONEY THE 6237 VOTE TO LIMIT DEBATE FOLLOWED A FRENZY OF NEGOTIATIONS AIMED AT SALVAGING THE BILL A KEY PART OF CLINTON'S AGENDA THE SENATE VERSION IS LIKELY TO BE CHANGED IN CONFERENCECOMMITTEE SESSIONS WITH THE HOUSE WHERE DEMOCRATS ARE UNEASY ABOUT CHANGING A SYSTEM THAT HAS GIVEN THEM A MAJORITY FOR DECADES UN FORCES SHELLED A SOMALI CLAN LEADER'S HEADQUARTERS IN MOGADISHU ARMORED COLUMNS WERE SEEN MOVING INTO THE CENTRAL PART OF THE CITY EARLY TODAY AFTER US GUNSHIPS AND UN GROUND TROOPS RENEWED THEIR STRIKES AGAINST AIDID'S HEADQUARTERS PENTAGON SOURCES SAID THE UN FORCES MIGHT BEGIN HOUSETOHOUSE SEARCHES PRESUMABLY AIMED AT FINDING WEAPONS CACHES OR AIDID HIMSELF MEANWHILE A US MARINE AMPHIBIOUS FORCE HEADED TOWARD SOMALIA FROM THE PERSIAN GULF THE UN HAS ACCUSED AIDID OF ORCHESTRATING AMBUSHES THAT KILLED 23 UN SOLDIERS FROM PAKISTAN AND INJURED MORE THAN 50 EARLIER THIS MONTH THE SECURITY COUNCIL VOTED TO IMPOSE A WORLDWIDE OIL ARMS AND FINANCIAL EMBARGO ON HAITI UNLESS ACTION IS TAKEN WITHIN A WEEK TOWARD RESTORING OUSTED PRESIDENT ARISTIDE TO POWER THE UN RESOLUTION WAS ADOPTED BY A UNANIMOUS VOTE JAPAN'S OPPOSITION PARTIES SUBMITTED A NOCONFIDENCE MOTION IN PRIME MINISTER MIYAZAWA'S GOVERNMENT EARLY TODAY AFTER HIS FAILURE TO PUSH THROUGH POLITICAL REFORMS A VOTE ON THE MOTION COULD TAKE PLACE LATER TODAY OR TOMORROW IF MIYAZAWA LOSES HE WOULD BE FORCED EITHER TO RESIGN OR CALL ELECTIONS BOSNIAN MUSLIM FORCES SEIZED THE CENTRAL TOWN OF KAKANJ FROM THEIR FORMER CROAT ALLIES AND RAMPAGED THROUGH NEARBY CROAT VILLAGES UPROOTING 12000 PEOPLE OFFICIALS SAID MEANWHILE A UN TEAM ENTERED THE DEVASTATED MUSLIM ENCLAVE OF GORAZDE IN GENEVA SIGNS EMERGED OF A POSSIBLE DEAL TO DIVIDE BOSNIA AMONG ITS ETHNIC FACTIONS TWO CONGRESSIONAL PANELS APPROVED WITHOUT SUBSTANTIAL CHANGES CLINTON'S PROPOSAL FOR A NATIONAL SERVICE PROGRAM TO HELP STUDENTS PAY FOR COLLEGE THE PRESIDENT FIRST OUTLINED THE SERVICE PLAN DURING LAST YEAR'S CAMPAIGN RUSSIA'S YELTSIN SCORED A KEY VICTORY WHEN DELEGATES AT A MOSCOW CONVENTION TENTATIVELY BACKED A NEW CONSTITUTION THAT WOULD ABOLISH THE COMMUNISTDOMINATED CONGRESS AND ALLOW PRIVATE LAND OWNERSHIP THE PRESIDENT SAID A FINAL ACCORD MIGHT BE ONLY 10 DAYS AWAY THOUGH LEADERS OF SEVERAL REPUBLICS WERE LESS OPTIMISTIC THE HOUSE REJECTED AN ATTEMPT TO SLASH AID FUNDS FOR RUSSIA BY A 317118 VOTE LAWMAKERS DEFEATED AN AMENDMENT TO A 1994 AID BILL THAT WOULD HAVE REDUCED RUSSIAN ASSISTANCE BY 700 MILLION THE BILL CONTAINS 904 MILLION IN AID TO RUSSIA PART OF 45 BILLION FOR EXSOVIET REPUBLICS SOUGHT BY CLINTON IN THE 1993 AND 1994 BUDGET YEARS THE TWO MAIN CAMBODIAN PARTIES AGREED TO A POWERSHARING ARRANGEMENT WHILE A NEW CONSTITUTION IS BEING WRITTEN UNDER THE ACCORD BROKERED BY HEAD OF STATE SIHANOUK AN INTERIM GOVERNMENT WOULD RULE FOR THREE MONTHS POWER WOULD BE SHARED BY LEADERS OF THE FUNCINPEC PARTY WHICH WON LAST MONTH'S ELECTION AND THE OUTGOING REGIME PRESIDENT KRAVCHUK TOOK OVER DIRECT CONTROL OF UKRAINE'S CABINET AND GAVE BROAD ECONOMIC POWERS TO HIS PRIME MINISTER HIS ACTIONS CAME AMID A CRIPPLING 10DAYOLD STRIKE BY AT LEAST A HALFMILLION MINERS NIGERIA'S ELECTORAL COMMISSION REFUSED TO DECLARE A WINNER IN SATURDAY'S PRESIDENTIAL ELECTION PENDING A COURT CASE ALLEGING THE BALLOTING WAS RIGGED THE DECISION PROMPTED CHARGES THAT MILITARY RULER BABANGIDA IS RENEGING ON HIS PLEDGE TO HAND OVER POWER TO A CIVILIAN GOVERNMENT INDIAN PRIME MINISTER RAO DENIED ALLEGATIONS THAT HE RECEIVED 320000 FROM A STOCKBROKER AT THE CENTER OF A 128 BILLION SECURITIES SCANDAL THE STOCKBROKER FREE ON BAIL ON CHARGES OF ILLEGALLY DIVERTING BANKING FUNDS INTO THE STOCK MARKET CLAIMED THE CAMPAIGN DONATION WAS MADE IN NOVEMBER 1991 9306170030 930617 PRICE CO PLANS A COMBINATION WITH COSTCO MERGER OF WAREHOUSE CLUBS WILL CREATE HUGE FIRM COMPANIES' STOCKS JUMP BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL PRICE CO AND COSTCO WHOLESALE CORP THE NATION'S SECONDLARGEST AND THIRDLARGEST WAREHOUSE CLUB CHAINS AGREED TO COMBINE INTO A 195STORE GIANT THAT WILL RIVAL THE SAM'S CLUB UNIT OF WALMART STORES INC FOR DOMINANCE IN THE 40 BILLIONAYEAR INDUSTRY THE NEW COMPANY TO BE CALLED PRICE/COSTCO WILL HAVE AN INDICATED MARKET CAPITALIZATION OF ABOUT 4 BILLION BOTH COMPANIES' STOCK PRICES ROSE SHARPLY YESTERDAY WITH PRICE CO SOARING 19 AND COSTCO CLIMBING 12 THE COMPANIES PROJECTED COMBINED ANNUAL REVENUE OF 16 BILLION SUGGESTING TO ANALYSTS THAT SALES OF THE NEW CONCERN WOULD MATCH OR SURPASS SAM'S ALTHOUGH THE 284STORE SAM'S CHAIN BOASTS MORE OUTLETS WALL STREET OBSERVERS SAID THE MERGER PRESAGES A LONGAWAITED SHAKEOUT IN THE MATURING WAREHOUSE CLUB MARKET AND WILL PUT CONSIDERABLE PRESSURE ON COMPETITORS SUCH AS KMART CORP'S AILING PACE MEMBERSHIP WAREHOUSE DIVISION SALES AT THE CLUBS WHICH SELL GENERAL MERCHANDISE AND FOOD IN CAVERNOUS NOFRILLS STORES HAVE BEEN HURT IN RECENT MONTHS BY A WEAK ECONOMY AND INTENSE COMPETITION ESPECIALLY IN OVERCROWDED MARKETS ANALYSTS HAILED THE COMBINATION AS A GOOD MOVE FOR THE COMPANIES THE MERGER WILL GIVE THEM ALL KINDS OF SYNERGIES AND GIVE THEM TREMENDOUS BUYING CLOUT SAID THOMAS KULLY OF WM BLAIR & CO IN CHICAGO IN HEAVY OVERTHECOUNTER TRADING PRICE CO'S STOCK SOARED 625 TO 3850 OR AN INDICATED MARKET CAPITALIZATION OF 178 BILLION BASED ON 463 MILLION COMMON SHARES OUTSTANDING COSTCO'S STOCK CLIMBED 2 TO 19 OR AN INDICATED MARKET CAPITALIZATION OF 23 BILLION BASED ON 121 MILLION COMMON SHARES OUTSTANDING IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WALMART SHARES FELL 75 CENTS OR 28 TO 2575 UNDER THE MERGER EXPECTED TO BE COMPLETED BY YEAR'S END PRICE CO STOCKHOLDERS WILL RECEIVE 213 SHARES OF THE NEW CONCERN'S STOCK FOR EACH COMMON SHARE CURRENTLY HELD IN THE SAN DIEGO CALIF COMPANY COSTCO HOLDERS WILL RECEIVE ONE NEW SHARE FOR EACH COMMON SHARE HELD IN THE KIRKLAND WASH COMPANY JIM SINEGAL COSTCO PRESIDENT AND CHIEF EXECUTIVE OFFICER WILL BE PRESIDENT AND CHIEF EXECUTIVE OF THE NEW COMPANY AND ROBERT E PRICE PRICE CO CHAIRMAN AND CHIEF EXECUTIVE WILL BE CHAIRMAN JEFF BROTMAN COSTCO CHAIRMAN WILL BE VICE CHAIRMAN OF PRICE/COSTCO AND MITCH LYNN PRICE CO PRESIDENT WILL BE SENIOR EXECUTIVE VICE PRESIDENT MR PRICE SAID THE NEW COMPANY WILL HAVE A 10MEMBER BOARD WITH FIVE DIRECTORS REPRESENTING EACH CONCERN AFTER THE MERGER PRICE CO HOLDERS WILL OWN 48 OF PRICE/COSTCO'S STOCK WITH COSTCO HOLDERS OWNING 52 UNDER THE AGREEEMENT EACH COMPANY GRANTED THE OTHER THE RIGHT TO BUY 195 OF ITS OUTSTANDING STOCK IN NEWLY ISSSUED SHARES EACH COMPANY HAS AGREED TO SIGN A SHAREHOLDERS' RIGHTS PLAN AND TO PAY A 50 MILLION FEE IF IT BREAKS OFF THE TRANSACTION UNDER CERTAIN CONDITIONS THE COMPANIES SAID THAT THEY WOULD SPLIT OPERATING AND ADMINISTRATIVE FUNCTIONS BETWEEN THEIR CURRENT HEADQUARTERS IN SAN DIEGO AND KIRKLAND AND THAT THEY HAD NO IMMEDIATE PLANS TO CUT JOBS THERE'S BEEN NO DECISION MADE TO CLOSE ANY UNITS MR PRICE SAID REFERRING TO MARKETS IN WHICH THE CHAINS HAVE COMPETING STORES STILL ANALYSTS SAID THE COMPANIES WOULD EVENTUALLY HAVE TO STREAMLINE OPERATIONS AND CUT OVERHEAD TO WORK EFFICIENTLY COSTCO CURRENTLY HAS 20000 EMPLOYEES AND 102 STORES WHILE PRICE CO HAS ABOUT 26000 EMPLOYEES AND 93 STORES THE NEW COMPANY WILL DOMINATE THE WEST COAST MARKET ANALYSTS SAID MR PRICE AND HIS FATHER SOL PRICE INTRODUCED THE PUBLIC TO THE WAREHOUSE CLUB CONCEPT IN 1976 SELLING GOODS TO DUESPAYING INDIVIDUALS AND SMALL BUSINESSES THE IDEA SPAWNED SEVERAL COMPETITORS INCLUDING THE 10YEAROLD COSTCO CHAIN AND THE INDUSTRY SUSTAINED DOUBLEDIGIT GROWTH IN SALES AND EARNINGS OVER MUCH OF THE PAST 15 YEARS BUT THE INDUSTRY'S PROFIT MARGINS HAVE ERODED OVER THE PAST 18 MONTHS ANALYSTS SAID AND THE FIRST SIGNS OF CONSOLIDATION HAD APPEARED BEFORE YESTERDAY'S ANNOUNCEMENT IN MAY KMART'S PACE DIVISION AGREED TO SELL 14 STORES TO WALMART'S SAM'S CHAIN NOW ALL THE INDUSTRY CLOUT WILL BE IN THE HANDS OF THE TWO AT THE TOP JANET MANGANO AN ANALYST WITH BURNHAM SECURITIES INC SAID OF PRICE/COSTCO AND SAM'S OTHER COMPETITORS WILL JUST BE DISTANT PLAYERS SEPARATELY COSTCO SAID NET INCOME IN THE FISCAL THIRD QUARTER ENDED MAY 9 FELL 13 TO 177 MILLION OR 15 CENTS A SHARE FROM 204 MILLION OR 17 CENTS A SHARE A YEAR EARLIER REVENUE INCREASED 14 TO 167 BILLION FROM 147 BILLION ON A SAMESTORE SALES INCREASE OF 2 COSTCO ATTRIBUTED THE EARNINGS DECLINE TO STARTUP COSTS FROM 13 NEW WAREHOUSE STORES IN THE FIRST NINE MONTHS NET INCREASED 1 TO 745 MILLION OR 61 CENTS A SHARE FROM 741 MILLION OR 61 CENTS A SHARE A YEAR EARLIER REVENUE GREW 16 TO 514 BILLION FROM 442 BILLION ON A SAMESTORE SALES INCREASE OF 3 9306170029 930617 WHO'S NEWS BANK OF MONTREAL TO BEGIN MAJOR MIDWEST EXPANSION BANK OF MONTREAL CANADA'S THIRD LARGEST SENT ITS RETAILBANKING CHIEF TO SPEARHEAD CHICAGO SUBSIDIARY HARRIS BANKCORP'S EXPANSION PLANS IN THE US MIDWEST THE MONTREALBASED BANK NAMED ALAN G MCNALLY CURRENTLY VICE CHAIRMAN PERSONAL AND COMMERCIAL FINANCIAL SERVICES AS CHIEF EXECUTIVE OFFICER OF HARRIS TO OVERSEE THE UNIT'S EXPANSION THE BANK PLANS TO INVEST BETWEEN 600 MILLION AND 700 MILLION DURING THE NEXT 10 YEARS TO TRIPLE THE NUMBER OF HARRIS BRANCHES IN ILLINOIS AND SEVEN NEARBY STATES CURRENTLY HARRIS HAS 40 BRANCHES MOSTLY IN CHICAGO AND ASSETS OF 127 BILLION AS A RESULT OF THE EXPANSION DRIVE BANK OF MONTREAL PREDICTS THAT HALF ITS EARNINGS WILL COME FROM ITS US SUBSIDIARY BY THE END OF THE DECADE COMPARED WITH 30 NOW THE COMPANY PURCHASED HARRIS IN 1984 MR MCNALLY 47 YEARS OLD SUCCEEDS B KENNETH WEST 60 WHO WILL CONTINUE AS CHAIRMAN OF HARRIS ALSO DONALD S HUNT CURRENTLY HARRIS'S PRESIDENT WILL TAKE ON THE ADDED ROLE OF CHIEF OPERATING OFFICER BANK OF MONTREAL WON'T FILL MR MCNALLY'S PREVIOUS POSITION OF VICE CHAIRMAN BUT RESPONSIBILITY FOR PERSONAL AND COMMERCIAL FINANCIAL SERVICES WILL BE ASSUMED BY RON ROGERS 45 SENIOR EXECUTIVE VICE PRESIDENT 9306170028 930617 OTC FOCUS SALES OF TRANSPORT AND TRANSPORTATION ISSUES PULL DOWN MARKET SNAPPLE SCARS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SELLING OF TECHNOLOGY AND TRANSPORTATION STOCKS DRAGGED DOWN THE OVERTHECOUNTER MARKET BUT SNAPPLE BEVERAGE SOARED TO ANOTHER RECORD WHILE COSTCO WHOLESALE AND PRICE CO ALSO SURGED ON THEIR MERGER ANNOUNCEMENT THE NASDAQ COMPOSITE INDEX DROPPED 109 OR 016 TO 69625 LOSERS TOPPED GAINERS 1407 TO 1241 ON TOTAL VOLUME OF 2399 MILLION SHARES UP FROM TUESDAY'S 2368 MILLION SNAPPLE JUMPED ANOTHER 3 3/4 TO 40 3/4 YESTERDAY GIVING THE STOCK A 33 GAIN FOR THE WEEK YESTERDAY SNAPPLE WAS ONE OF THE DAY'S MOST ACTIVE STOCKS WITH MORE THAN 19 MILLION SHARES TRADED ALMOST THREEANDAHALF TIMES ITS NORMAL VOLUME ALTHOUGH MUCH OF THE INTEREST IS COMING FROM INDIVIDUAL INVESTORS TRADERS SAID INSTITUTIONAL BUYERS ALSO CONTRIBUTED TO THE HIGH VOLUME ON TUESDAY THE STOCK SURGED AFTER WALL STREET ANALYSTS INCREASED THEIR EARNINGS ESTIMATES AND CITED THE POSSIBILITY OF THE COMPANY MAKING MORE ACQUISITIONS YESTERDAY'S BOUNCE CAME MOSTLY FROM SHORTSELLERS THOSE WHO HAD BET ON THE STOCK'S DECLINE BUT WHO HAD TO BUY BACK SHARES TO COVER THEIR POSITIONS TRADERS SAID AS OF MIDMAY SNAPPLE REGISTERED A SHORT INTEREST POSITION OF 28 MILLION SHARES BEFORE ITS 2FOR1 SPLIT AN INCREASE OF 70 FROM A MONTH EARLIER IT'S OBVIOUSLY A MOMENTUM PLAY SAID EE BUZZY GEDULD PRESIDENT OF HERZOG HEINE GEDULD I HAVE NO IDEA WHY IT IS SELLING AT THIS PRICE IT LOOKED LIKE A SHORT 50 POINTS AGO DESPITE THE STOCK'S GRANDIOSE TRADING MULTIPLE OF 52 TIMES THIS YEAR'S EARNINGS ESTIMATE OF ABOUT 78 CENTS A SHARE INVESTORS STILL WANT TO HOLD SNAPPLE SHARES I GOT INTO THE IPO I BOUGHT SOME MORE SHARES A COUPLE WEEKS AGO AND I'M GOING TO HOLD ON TO THEMSAID FREDERICK KOBRICK PORTFOLIO MANAGER OF STATE STREET CAPITAL FUND OF STATE STREET RESEARCH & MANAGEMENT CO AFTER DOING OUR OWN MARKET RESEARCH WE BELIEVE THE COMPANY HAS REAL NATIONAL APPEAL AND WILL GROW IN MANY MARKETS BUT MANY OF THE INSTITUTIONAL INVESTORS WHO BOUGHT IN THE INTIAL PUBLIC OFFERING HAVE SOLD THEIR SHARES TRADERS SAID THE DAY'S MOST ACTIVE STOCK COSTCO WHOLESALE JUMPED 2 TO 19 ON 96 MILLION SHARES ALMOST 11 TIMES ITS NORMAL VOLUME THE DAY'S SECOND MOST ACTIVE STOCK PRICE LEAPT 6 1/4 TO 38 1/2 ON 47 MILLION SHARES ALMOST 23 TIMES ITS NORMAL VOLUME THE TWO WHOLESALE CASHANDCARRY MEMBERSHIP BUSINESSES SIGNED A DEFINITIVE AGREEMENT TO FORM A HOLDING COMPANY TO BE CALLED PRICE/COSTCO ANALYSTS HAILED THE MERGER ARGUING THAT IT MAKES STRATEGIC SENSE THE MERGER WILL CREATE A COMPANY WITH 195 MEMBERSHIP WAREHOUSES IN THREE COUNTRIES WITH ANNUAL SALES OF ABOUT 16 BILLION PRICE SAID PRICE ADDED THAT THE AGREEMENT CALLS FOR SHARES OF STOCK IN THE NEW COMPANY TO BE ISSUED ON THE BASIS OF 213 SHARES FOR EACH PRICE COMMON SHARE AND ONE SHARE FOR EACH COSTCO COMMON SHARE THE MERGER IS EXPECTED TO BE COMPLETED BY DEC 31 THERE WAS A BROAD SELLOFF IN THE TRANSPORTATION SECTOR DUE TO CONTINUED UNCERTAINTY OVER HOW MUCH THE FUEL TAX WILL BE INCREASED AS PART OF PRESIDENT CLINTON'S BUDGET PROPOSAL ADOBE MEANWHILE FINISHED 3 LOWER AT 69 IN WHAT MARKET PLAYERS SAID COULD BE A REFLECTION OF SEVERAL FACTORS PROFITTAKING DOWNBEAT COMMENTS BY AN ANALYST ABOUT THE COMPANY'S ACROBAT SOFTWARE OR WEAKNESS IN NEW YORK STOCK EXCHANGELISTED HEWLETTPACKARD'S STOCK DUE TO A POOR EARNINGS OUTLOOK HEWLETTPACKARD WHICH FELL 3 3/8 TO 83 5/8 LICENSES ADOBE'S POSTSCRIPT PAGEDESCRIPTION LANGUAGE FOR ITS PRINTERS TRADERS SAID THE MARKET PROBABLY WILL REMAIN IN A STATE OF CONFUSION THROUGH TOMORROW'S TRIPLE WITCHING SESSION WHICH NORMALLY WREAKS HAVOC ON THE STOCK MARKET STOCKINDEX FUTURES STOCKINDEX OPTIONS AND OPTIONS ON INDIVIDUAL STOCKS ARE DUE TO EXPIRE TOMORROW ADOBE'S DECLINE HURT OTHER TECHNOLOGY STOCKS INTEL SLIPPED 1 1/4 TO 56 1/2 MICROSOFT GAVE UP 1 1/4 TO 91 1/4 AND NOVELL EASED 7/8 TO 28 ACTIVELY TRADED 3COM OF SANTA CLARA CALIF SKIDDED 2 TO 22 1/8 DESPITE UNVEILING A SOFTWARELICENSING PROGRAM 9306170027 930617 DEMOCRATS DRAFT NEW TAX PLAN IN THE SENATE PROPOSAL BOOSTS FUEL LEVY BY 43 CENTS AND SEEKS SURTAX ON CAPITAL GAINS BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON SENATE DEMOCRATIC TAX WRITERS REACHED A TENTATIVE DEFICITREDUCTION AGREEMENT CALLING FOR A 43CENT INCREASE IN FUEL TAXES A SURTAX ON CAPITALGAINS INCOME FOR THE WEALTHY AND A NUMBER OF CHANGES THAT WILL BE A HARD SELL WITH CONGRESS AND PRESIDENT CLINTON THE COMPROMISE AMONG THE 11 DEMOCRATS ON THE SENATE FINANCE COMMITTEE WOULD KILL OR SCALE BACK SEVERAL BUSINESS TAX INCENTIVES THAT WERE CENTRAL TO MR CLINTON'S ECONOMICSTIMULUS EFFORT AND WERE APPROVED BY THE HOUSE THE 10 SURTAX ON CAPITALGAINS INCOME FOR PEOPLE WITH TAXABLE INCOME OF MORE THAN 250000 IS A NEW PROVISION BUT ONE THAT DEMOCRATS ARE EXPECTED TO ACCEPT THE AGREEMENT ALSO WOULD CREATE A WRITEOFF FOR SOCALLED INTANGIBLE ASSETS ACQUIRED IN BUSINESS TAKEOVERS THAT IS LESS GENEROUS THAN THE VERSION PASSED BY THE HOUSE LAST MONTH THE SENATE VERSION WHICH IS TO GO TO THE FULL COMMITTEE FOR A VOTE TODAY WOULD RAISE THE CORPORATE TAX RATE TO 35 FROM 34 AS THE HOUSE BILL WOULD MR CLINTON ORIGINALLY PROPOSED A 36 RATE AND THE SENATE DEMOCRATS HAD CONSIDERED THIS LEVEL IN ORDER TO RAISE MORE REVENUES FOR UPPERINCOME INDIVIDUALS THE PRESIDENT'S PROPOSED INCOMETAX INCREASES WOULD EFFECTIVELY BE CUT IN HALF FOR THIS YEAR ONLY THE DOCUMENT PUT FORTH BY COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY AND MAJORITY LEADER GEORGE MITCHELL OF MAINE IS THE PRODUCT OF ARDUOUS CLOSEDDOOR DELIBERATIONS OVER FIVE DAYS THE BULK OF THE PLAN PARALLELS MR CLINTON'S PROGRAM AS PASSED IN THE HOUSE BUT THE SENATE DEMOCRATS EARLY ON JETTISONED THE PRESIDENT'S PROPOSED BROADBASED ENERGY TAX AND THEN SPLIT AMONG THEMSELVES ON HOW TO MAKE UP THE 715 BILLION THAT WOULD HAVE BEEN RAISED WITH THE ENERGY TAX OVER FIVE YEARS THOSE CHANGES AIMED AT REPLACING THE ENERGY TAX AND MAINTAINING THE PRESIDENT'S GOAL OF CUTTING THE DEFICIT BY 500 BILLION OVER FIVE YEARS ARE THE ONES THAT WILL POSE THE GREATEST HURDLES TO THE BILL'S PROGRESS SO FAR THE ADMINISTRATION HASN'T ACTIVELY INTERVENED IN THE SENATORS' TALKS FOCUSING INSTEAD ON SIMPLY ACQUIESCING IN ANY CHANGES THAT WILL MOVE A BILL FORWARD IN CONGRESS WITH THE COMMITTEE SPLIT 119 BETWEEN DEMOCRATS AND REPUBLICANS THE DEMOCRATS HAD TO ATTAIN UNANIMITY BEFORE THEY MET PUBLICLY WITH REPUBLICANS SINCE ALL OF THEM ARE EXPECTED TO OPPOSE THE BILL IT IS THE MOST PROGRESSIVE ECONOMIC PROGRAM IN ALL THE YEARS I HAVE BEEN IN THE SENATE SEN MITCHELL SAID AFTER THE PLAN WAS PRESENTED TO ALL SENATE DEMOCRATS AT A SPECIAL CAUCUS LAST NIGHT IT IS TOUGH FAIR BALANCED AND IT WILL REDUCE THE DEFICIT TREASURY SECRETARY LLOYD BENTSEN CALLED THE COMPROMISE AN IMPORTANT STEP ALONG THE PATH TO ENACTMENT OF THE PRESIDENT'S PROGRAM BUT DIDN'T COMMENT ON THE SPECIFIC ELEMENTS PRESIDENT CLINTON MAY GIVE HIS REACTION TO THE SENATE BILL AT HIS FIRST PRIMETIME NEWS CONFERENCE WHICH THE WHITE HOUSE HAS TENTATIVELY SCHEDULED FOR 8 PM EDT TONIGHT THE FUEL TAX INCREASE WHICH WOULD RAISE ABOUT 25 BILLION OVER FIVE YEARS DOESN'T MEET THE PRESIDENT'S CALLS FOR A BROADBASED LEVY WITH ENVIRONMENTAL BENEFITS AND IT'S CERTAIN TO BE OPPOSED BY MANY DEMOCRATS IT WAS THE LAST MAJOR ISSUE TO BE SETTLED AMONG THE SENATE DEMOCRATS SEN MAX BAUCUS HAD HELD OUT AGAINST THE PROPOSED INCREASE FOR DAYS CITING THE BURDEN ON DRIVERS IN LARGE RURAL STATES SUCH AS HIS STATE MONTANA THE CURRENT FEDERAL GASOLINE TAX IS 141 CENTS A GALLON THE PROPOSED LEVY ALSO WOULD HIT FUELS FOR AVIATION TRUCKING AND BOATS AMONG OTHER CHANGES THAT THE ADMINISTRATION AND THE HOUSE ARE LIKELY TO TRY TO CHANGE ARE PROVISIONS TO CUT PROJECTED SPENDING FOR MEDICARE 19 BILLION MORE OVER FIVE YEARS THAN THE NEARLY 50 BILLION THAT MR CLINTON PROPOSED AND TO DELETE A PROGRAM OF TAX INCENTIVES FOR INVESTMENTS IN DEPRESSED AREAS A PROGRAM THAT'S CRITICAL TO HOLDING THE SUPPORT OF THE CONGRESSIONAL BLACK CAUCUS IN THE HOUSE THE HOUSE WILL HAVE TO VOTE AGAIN ON WHATEVER BILL EMERGES FROM A SENATEHOUSE CONFERENCE COMMITTEE THE SENATE DRAFT ALSO WOULD DELETE NEW SPENDING FOR FOOD STAMPS AND CHILD IMMUNIZATIONS AND TRIM A TAX CREDIT FOR THE WORKING POOR THAT MR CLINTON AND MANY HOUSE DEMOCRATS WANT THE SENATORS ALSO HIT BUSINESSES TO MAKE UP REVENUE AFTER KILLING MR CLINTON'S ENERGY TAX BUT IN DOING SO THEY REMOVED MUCH OF WHAT WAS LEFT OF THE PRESIDENT'S ECONOMIC STIMULUS PROGRAM THE CHANGES WOULD SHARPLY SCALE BACK AN EXPANSION OF SMALL BUSINESSES' WRITEOFFS FOR EQUIPMENT PURCHASES CUT THE RELIEF PROPOSED FOR CORPORATIONS PAYING THE ALTERNATIVE MINIMUM TAX IMPOSE A 10000 CAP ON BUSINESS MOVING EXPENSES AND PROVIDE A REALESTATE INDUSTRY DEDUCTION FOR PASSIVE LOSSES ON RENTAL PROPERTY THAT'S LESS GENEROUS THAN THE HOUSE APPROVED BUT IDENTICAL TO MR CLINTON'S PROPOSAL IN ADDITION SEVERAL CHANGES WERE ADDED THAT WOULD HIT BUSINESSES THAT ARE IN BANKRUPTCY PROCEEDINGS THE PROVISION ON INTANGIBLE ASSETS PURCHASED IN MERGERS AND ACQUISITIONS IS LIKELY TO BE OPPOSED BY HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL WHO WILL LEAD THE HOUSE IN A CONFERENCE COMMITTEE LIKE THE HOUSE BILL THE PROVISION WOULD ALLOW A WRITEOFF OVER 14 YEARS FOR PURCHASED ASSETS SUCH AS SUBSCRIBER LISTS INSURANCE AGENTS' POLICYHOLDER LISTS AND A COMPANY'S GOODWILL THE VALUE ESSENTIALLY OF REPUTATION BUT THE SENATE VERSION WOULD ALLOW PURCHASERS TO DEPRECIATE ONLY 75 OF THE ASSETS' VALUE RATHER THAN THE WHOLE AMOUNT SPECIAL EXCEPTIONS ALLOWING SHORTER WRITEOFF PERIODS WERE CRAFTED FOR THE SOFTWARE MOVIE AND SECONDARYMORTGAGE INDUSTRIES THE COMMITTEE IMMEDIATELY SPARKED OPPOSITION BY STRIPPING AN ADMINISTRATIONBACKED PROPOSAL PROVIDING A TAX BREAK FOR CAPITAL GAINS FROM INVESTMENTS IN CERTAIN SMALL COMPANIES ITS CHIEF PROPONENT SEN DALE BUMPERS D ARK WHO ISN'T ON THE COMMITTEE SAID I AM INCENSED AND I'LL DO EVERYTHING I CAN TO GET IT RESTORED THE PRESIDENT CAMPAIGNED FROM ONE END OF THE COUNTRY TO ANOTHER ABOUT THIS THE CONGRESS HAS APPROVED IT TWICE BEFORE AND TO SUMMARILY DROP IT NOW IS OUTRAGEOUS IN AN EFFORT TO SHOW GREATER REVENUES COMMITTEE DEMOCRATS RESORTED TO A TIMEWORN BUDGET GIMMICK THE PRESIDENT AND THE HOUSE PROPOSED TO MAKE PERMANENT SEVERAL EXISTING BUT TEMPORARY TAX BREAKS INCLUDING TAX CREDITS FOR BUSINESSES' RESEARCH COSTS UNDER THE SENATORS' PLAN THE RESEARCH CREDIT WHICH EXPIRED LAST YEAR WOULDN'T BE RETROACTIVE AND WOULD BE EXTENDED JUST ONE YEAR THE SENATORS WOULD LIMIT MOST OF THE OTHER INCENTIVES TEMPORARILY SO THAT IT APPEARS THAT THE GOVERNMENT DOESN'T LOSE AS MUCH REVENUE IN THE FIVEYEAR PERIOD THAT IS USED TO MEASURE THE IMPACT OF BUDGET LEGISLATION HOWEVER THE TAX BREAKS ARE POPULAR WITH LAWMAKERS AND THEIR BUSINESS SUPPORTERS AND THEY ARE ALL BUT CERTAIN TO BE EXTENDED WHEN THEY EXPIRE JUST AS THEY HAVE BEEN IN THE PAST TWO BREAKS THAT HAVE POWERFUL PATRONS WOULD BE MADE PERMANENT ONE A TAX CREDIT FOR LOWINCOME HOUSING DEVELOPMENT IS A FAVORITE CAUSE OF SEN MITCHELL'S THE OTHER PROVIDING INCENTIVES FOR TAXPAYERS WHO DONATE ARTWORK RARE BOOKS AND OTHER SUCH GIFTS TO INSTITUTIONS IS IMPORTANT TO SEN MOYNIHAN AND THE NEW YORK CULTURAL COMMUNITY THE FINANCE PANEL'S PROVISION TO REDUCE THIS YEAR'S TAX INCREASE FOR THE RICHEST TAXPAYERS WOULD COST 9 BILLION IN EXPECTED REVENUE AS MR CLINTON PROPOSED THE HOUSE AND SENATE BILLS EACH WOULD PROVIDE THAT TAXPAYERS NOW SUBJECT TO THE TOP MARGINAL RATE OF 31 WOULD PAY 36 OR 396 DEPENDING ON THEIR INCOME BUT THE SENATORS AGREED THAT FOR THIS YEAR ONLY THE TOP RATES WOULD BE 335 AND 353 FOR AN INCREASE THAT IS HALF OF WHAT MR CLINTON SEEKS THE SENATORS WANTED TO AVOID RAISING INDIVIDUALS' RATES RETROACTIVELY THE SENATE BILL ALSO WOULD APPLY MR CLINTON'S PROPOSED TAX INCREASE ON SOCIAL SECURITY BENEFITS IN A WAY THAT HITS FEWER PEOPLE FOR INDIVIDUALS WHO MAKE 32000 AND COUPLES THAT MAKE 40000 85 OF THEIR BENEFITS WOULD BE TAXABLE UNDER CURRENT LAW 50 OF BENEFITS ARE TAXABLE FOR INDIVIDUALS MAKING 25000 AND COUPLES MAKING 32000 IN ADDITION TO DROPPING MR CLINTON'S ENERGY TAX THE DEMOCRATS ON THE FINANCE PANEL AGREED TO OTHER CHANGES THAT WOULD REDUCE REVENUE TWO OF THOSE WOULD LIMIT THE TAX INCREASES THE PRESIDENT HAD PROPOSED FOR SOME MULTINATIONAL COMPANIES' OVERSEAS INCOME AND FOR SOME US COMPANIES DOING BUSINESS IN PUERTO RICO THE DEMOCRATS' FINAL BARGAINING INCLUDED OTHER CONCESSIONS FOR INFLUENTIAL MEMBERS FARMSTATE SENATORS WON A REDUCTION IN THE PROPOSED INCREASE ON FUEL TAXES FOR ETHANOL AND METHANOL AND THE CHANGES FOR BUSINESSES IN PUERTO RICO REFLECTED WORK BY A COALITION OF BUSINESS AND PUERTO RICAN POLITICAL INTERESTS SEN BILL BRADLEY D NJ WHOSE HOMESTATE PHARMACEUTICAL INDUSTRY HAS A STAKE IN THE CREDIT SAID THE CURRENT BENEFIT IS INDEFENSIBLE IN TERMS OF TAX POLICY BUT SOME CONCESSION WAS NEEDED TO AVOID TIPPING THE POLITICAL BALANCE IN PUERTO RICO BEFORE A NOVEMBER'S PLEBISCITE THE RESULTING AGREEMENT WHICH IS POLITICALLY SENSITIVE FOR SEN MOYNIHAN AND NEW YORK AS WELL WILL COST THE TREASURY AN ESTIMATED 3 BILLION IN REVENUES THAT HAD BEEN ANTICIPATED OVER FIVE YEARS MR BRADLEY SAID THE ADMINISTRATION HAD AGREED TO SIMILARLY SCALE BACK ITS PLAN THIS WEEK AFTER PRESSURE FROM HISPANIC LAWMAKERS MEANWHILE HIS MANEUVERING ON BEHALF OF NEW JERSEY COMPANIES CONTRASTED TO HIS WORK IN THE RECENT MEETINGS TO TRIM OTHER TAX BREAKS DAVID ROGERS CONTRIBUTED TO THIS ARTICLE 9306170026 930617 MANAGEMENT PEPSI FACES PROBLEM IN TRYING TO CONTAIN SYRINGE SCARE BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL PEPSICOLA CO UP AND RUNNING AFTER WHAT SOME CRITICS CALL FOOT DRAGGING IS MOUNTING A MASSIVE PUBLICRELATIONS OFFENSIVE AGAINST WIDESPREAD REPORTS OF TAMPERING WITH ITS SOFT DRINKS WITH MORE THAN THREE DOZEN REPORTS IN AT LEAST 20 STATES OF PEPSI CANS CONTAINING SYRINGES HYPODERMIC NEEDLES EVEN A BULLET THE COMPANY HAS ASSEMBLED A 12MEMBER CRISISMANAGEMENT TEAM AT HEADQUARTERS IN SOMERS NY THE BUILDING'S SIXTH FLOOR WHERE THE TEAM HAS ASSEMBLED IS BEING CALLED THE BUNKER THE UNUSUAL NATURE OF THE PRODUCTTAMPERING CLAIMS HAS CREATED A DILEMMA FOR PEPSI FOR ONE THING NO ONE AS YET HAS BEEN INJURED A SITUATION THAT MIGHT REQUIRE SUCH ACTION AS A LIMITED RECALL OR CLOSING A PLANT MOREOVER THERE STILL HASN'T BEEN A SINGLE CONFIRMED CASE OF A SYRINGE FOUND IN AN UNOPENED PEPSI CAN INDEED THE FOOD AND DRUG ADMINISTRATION HAS SAID IT CAN'T FIND ANY CONNECTION AMONG THE GROWING NUMBER OF SYRINGE REPORTS BUT TO CALM MOUNTING FEARS PEPSICOLA PRESIDENT CRAIG WEATHERUP HAS TAKEN TO THE AIRWAVES IN A TVNEWS BLITZ THAT INCLUDED NIGHTLINE ON TUESDAY NIGHT AND ALL THREE NETWORK MORNING SHOWS YESTERDAY TO REASSURE THE PUBLIC THAT THE COMPANY'S BEVERAGES ARE SAFE AND TO CALM MOUNTING FEARS HE WAS SCHEDULED TO APPEAR LAST NIGHT ON LARRY KING LIVE AND THE MCNEILLEHRER SHOW AS WELL WE'VE GONE THROUGH EVERY CAN LINE EVERY PLANT NUMEROUS RECORDS MR WEATHERUP SAID IN AN INTERVIEW ALL THE EVIDENCE POINTS TO SYRINGES GOING INTO THE CANS AFTER THEY WERE OPENED CALLING IT TOO EARLY TO TELL WHETHER THERE HAS BEEN ANY EFFECT ON SALES HE SAID THE COMPANY HASN'T MOVED TO RECALL ANY PRODUCTS BECAUSE THERE IS NO HEALTH ISSUE BY CONTRAST WHEN PERRIER GROUP OF AMERICA INC PULLED ITS BOTTLED WATER FROM STORE SHELVES IN 1990 IT WAS AFTER REGULATORS HAD FOUND BOTTLES WITH TRACES OF BENZENE A POISONOUS LIQUID SHOWN TO CAUSE CANCER IN LABORATORY ANIMALS PEPSI A UNIT OF PEPSICO INC IS FAXING DAILY MORNING UPDATES TO ITS 600 OFFICES DISTRIBUTION CENTERS AND BOTTLERS NATIONWIDE ASKING THEM TO REASSURE RETAILERS THAT PEPSI PRODUCTS ARE SAFE AND SHOULD BE KEPT STOCKED ON STORE SHELVES PEPSI IS REALLY ON THE HORNS OF A DILEMMA SAID STEVEN FINK PRESIDENT OF LEXICON COMMUNICATIONS CORP A LOS ANGELES CRISISMANAGMENT CONSULTING AND PUBLICRELATIONS FIRM IT'S NOT CLEAR HOW MANY OF THESE CASES ARE HOAXES AND HOW MANY IF ANY ARE REAL SOME CRISISMANAGEMENT EXPERTS HOWEVER THINK PEPSI SHOULD HAVE MOVED MORE SWIFTLY WHEN THE FIRST TWO REPORTS OF SYRINGES AROSE IN WASHINGTON STATE LAST WEEK THEY WERE A LITTLE LATE IN GETTING OUT IN FRONT OF IT SAID BILL SOUTHARD PRESIDENT OF EARLE PALMER BROWN PUBLIC RELATIONS IN NEW YORK WHO HAS HELPED SEVERAL COMPANIES MANAGE THROUGH CRISES INITIALLY THEY TRIED TO LOWKEY IT AND IT WASN'T UNTIL FULLY A DAY AFTER REPORTS OF TAMPERING POPPED UP IN SEVERAL AREAS OF THE COUNTRY THAT ANYONE MORE SENIOR THAN A PEPSI SPOKESMAN APPEARED IN THE MEDIA TO RESPOND TO THE PROBLEM MR SOUTHARD AND OTHERS THINK PEPSI'S TACK OF DEFLECTING BLAME DOESN'T COMBAT CONSUMERCONFIDENCE PROBLEMS IN INTERVIEWS AND TV APPEARANCES MR WEATHERUP AND OTHER PEPSI OFFICIALS HAVE EMPHASIZED THAT THE SPEED OF THE COMPANY'S PRODUCTION LINES AND THE CLEANING METHODS USED IN ITS PLANTS MAKE IT VIRTUALLY IMPOSSIBLE TO INSERT OBJECTS INTO CANS IN A BOTTLING OPERATION FEAR IS A CONSUMERSENSITIVITY ISSUE SAID MR SOUTHARD IT'S VERY IMPORTANT REGARDLESS OF THE CIRCUMSTANCES TO POSITION YOURSELF AS A COMPANY THAT IS CONCERNED AND TO OUTLINE SPECIFIC STEPS YOU'LL TAKE TO GET TO THE BOTTOM OF THE ISSUE SOME CRISISMANAGEMENT SPECIALISTS THINK THE SHEER AMOUNT OF NEGATIVE PUBLICITY LEAVES PEPSI WITH LITTLE CHOICE BUT TO ORDER UP A RECALL AT LEAST IN STATES WHERE REPORTS HAVE BEEN MADE IN THE TYLENOL SCARE IN 1982 YOU FIND THAT JOHNSON & JOHNSON WAS VERY EFFECTIVE IN CONVINCING THE AMERICAN PEOPLE THAT IT CARED AS MUCH ABOUT CUSTOMERS AS MONEY THOUGH ITS PRODUCT RECALL SAYS JACK LEVIN A PROFESSOR OF SOCIOLOGY AND CRIMINOLOGY AT NORTHEASTERN UNIVERSITY IN BOSTON THAT MESSAGE HASN'T GOTTEN THROUGH IN PEPSI'S RECENT ACTIONS INDEED MR FINK THE CRISIS SPECIALIST SAID BIG CONSUMERPRODUCT COMPANIES PERIODICALLY EXPERIENCE TAMPERING CLAIMS AND HE TYPICALLY ADVISES THEM TO TEMPORARILY SUSPEND SALES IN THE IMMEDIATE AREA OF THE INCIDENT YOU NIP IT IN THE BUD IN A LOWKEY WAY INVESTIGATE IT FIX IT THEN REINTRODUCE THE PRODUCT WITHOUT FANFARE HE SAYS PEPSI HAD AN OPPORTUNITY TO DO THAT EARLY ON AND THEY MISSED IT WHAT STARTED AS TWO CASES OF REPORTED SYRINGES IN DIET PEPSI CANS IN THE SEATTLETACOMA AREA LAST WEEK QUICKLY MUSHROOMED INTO MORE THAN 35 CLAIMS IN ABOUT 20 STATES IN 48 HOURS TO DATE A SINGLE PERSON IN PENNSYLVANIA HAS BEEN ARRESTED ON FEDERAL CHARGES OF MAKING A FALSE REPORT OF FINDING A SYRINGE IN A PEPSI CAN OTHER SYRINGE SIGHTINGS COULD WELL BE HOAXES TOO YESTERDAY A SPOKESMAN FOR COCACOLA CO IN ATLANTA SAID THE COMPANY HAD RECEIVED TWO REPORTS OF TAMPERINGS WITH ITS DRINKS BOTH OF WHICH IT BELIEVED WERE FALSE STILL THE FDA IS ADVISING PEOPLE TO POUR THEIR PEPSI INTO A GLASS BEFORE DRINKING IT JUST TO BE SURE DAVID A KESSLER FDA COMMISSIONER SAID HIS AGENCY IS INVESTIGATING EACH CLAIM SERIOUSLY IN AN INTERVIEW HE NOTED THAT OF THE CANS THE FDA HAS EXAMINED SO FAR NONE HAS BEEN TAMPERED WITH OR THE PACKAGING ALTERED HE ADDED IF YOU GO BACK TO THE GIRL SCOUT COOKIE TAMPERING CASE IN 1984 THERE WERE 487 COMPLAINTS AFTER THE FIRST REPORT NONE OF WHICH WERE SUBSTANTIATED OR VERIFIED NONETHELESS PEPSI MAY HAVE TO CONTEND WITH PUBLIC EMOTION RATHER THAN REASON THERE'S AN ARM WRESTLING FOR THE BELIEF OF THE PUBLIC SAYS TOM PIRKO PRESIDENT OF BEVMARK INC A BEVERAGE CONSULTING COMPANY AND IF THE PUBLIC SENSES THAT THERE ARE SO MANY INCIDENTS THAT THAT MANY PEOPLE COULDN'T BE FAKING IT THEN PEPSI COULD HAVE A DISASTER MOST STORES SEEM TO BE TAKING A WAITANDSEE ATTITUDE VONS COS THE BIG LOS ANGELESBASED GROCERY CHAIN SAID IT HASN'T HAD ANY NOTICEABLE IMPACT ON SALES BUT SOME CUSTOMERS CLEARLY ARE WARY AT A SOFTDRINK VENDING MACHINE IN AN ATLANTA KROGER STORE CARLA SMITH A 28YEAROLD KROGER EMPLOYEE SAID SHE NORMALLY DRINKS DIET PEPSI I WAS GOING TO BUY ONE TODAY SHE SAID BUT THE SYRINGE REPORTS LEFT HER UNEASY NOW I'M DRINKING DIET COKE SHE SAYS MR PIRKO THINKS PEPSI'S BEST DEFENSE IS TO HANG TOUGH AND TO CONTINUE TO RELY ON THE FDA AS ITS BEST ALLY EVEN IF AMERICANS HAVE DOUBTS ABOUT WHAT A BIG CORPORATION IS TELLING THEM HE SAID THE BLESSING OF THE FDA SHOULD BE CONVINCING MR WEATHERUP WHO HAS TALKED WITH DR KESSLER SAID IT HAS BEEN FRUSTRATING TRYING TO MANAGE THROUGH A PROBLEM THAT HE BELIEVES IS WHOLLY OUT OF PEPSI'S CONTROL MR WEATHERUP SAID HE EXPECTS FURTHER ARRESTS IN THE TAMPERING CLAIMS WE HAVE A FAIR AMOUNT OF INFORMATION IN HAND THAT SHOWS THAT AT LEAST IN SEVERAL INCIDENTS IT WAS A HOAX HE SAID HE ADDED THAT IT IS TOO EARLY TO GAUGE THE EFFECT ON PEPSI SALES IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY PEPSICO STOCK CLOSED AT 35625 UNCHANGED PEPSI'S TRICK WILL BE TO CONVINCE THE PUBLIC THAT IT IS TAKING THE SITUATION SERIOUSLY AND THAT IT CARES MORE ABOUT THE SAFETY OF CONSUMERS THAN SALES IF THEY CAN ACCOMPLISH THAT SAID FREDERICK KOENIG A PROFESSOR OF SOCIOLOGY AT TULANE UNIVERSITY WHO HAS STUDIED BUSINESS RUMORS THEY MIGHT EVEN GET A SYMPATHY BACKLASH BECAUSE THEY'LL BE VIEWED AS A VICTIM 9306170025 930617 CREDITOR BACKLASH LOSSES IN BANKRUPTCIES SPUR LENDERS TO STRIVE TO PROTECT THEMSELVES IMPETUS TO STIFFEN LAW GROWS AS MORE PEOPLE USE IT SIMPLY AS BUSINESS TACTIC THE SURVIVAL OF THE UNFITTEST' BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BANKRUPTCY COST DOMINIC ANTONELLI HIS 103FOOT YACHT HIS 12ACRE SUBURBAN ESTATE AND HIS STAKE IN VIRGINIA'S NATURAL BRIDGE A MUCHVISITED ROCK FORMATION ONCE OWNED BY THOMAS JEFFERSON STILL HE DIDN'T COME OUT ALL THAT BADLY ACCORDING TO HIS ATTORNEYS HE WAS ALLOWED TO KEEP ASSETS TOTALING 5 MILLION INCLUDING CASH AND STOCKS AND HIS CREDITORS AGREED TO PAY HIM ABOUT 400000 A YEAR FOR HIS HELP IN UNWINDING THE TANGLE OF REALESTATE PARTNERSHIPS HE HAD SET UP SO BANKRUPTCY WAS KIND TO THE OVEREXTENDED PARKINGLOT AND REALESTATE MAGNATE ESPECIALLY CONSIDERING THAT WHEN HE FILED IN 1991 HE AND HIS WIFE LISTED DEBTS OF 250 MILLION AND ASSETS OF 120 MILLION LOTS OF PEOPLE ARE USING BANKRUPTCY TO HANG ONTO A SIZABLE SLICE OF THEIR WEALTH WHILE SIDESTEPPING A PILE OF DEBT THEY ARE THE MOST VISIBLE DISTORTION IN A LARGER SYSTEM IN NEED OF AN OVERHAUL BANKRUPTCY PROCEEDINGS CAN DRAG ON FOR YEARS ALLOWING DEBTORS TO STIFF CREDITORS AND AVOID SETTLEMENT AS LONG AS POSSIBLE IT'S SICKENING SAYS JAMES COE PRESIDENT OF FIRST FEDERAL SAVINGS & LOAN IN DELTA OHIO WHO COMPLAINS THAT THE RULES ARE STACKED IN FAVOR OF THE DEBTORS FOR EXAMPLE HE NOTES THAT MANY HOMEOWNERS CAN STAY IN THEIR HOUSES FOR AS LONG AS A YEAR ESSENTIALLY COSTFREE AFTER THEY DEFAULT ON MORTGAGE PAYMENTS TIRED OF ENDLESS BANKRUPTCY PROCEEDINGS AND OUTRAGED BY DODGY DEBTORS LENDERS ARE FIGHTING BACK VISA USA HAS SET UP A NATIONWIDE NETWORK OF LAWYERS TO SEEK SETTLEMENTS FROM BANKRUPT CARDHOLDERS MANY LENDERS ARE WORKING HARDER TO PROTECT THEMSELVES ROBERT DUNCAN CHAIRMAN OF MAGNOLIA FEDERAL BANK SAYS THE HATTIESBURG MISS THRIFT HAS INCREASED THE DOWN PAYMENTS REQUIRED TO GET HOME MORTGAGES BANKRUPTCY HAS HAD AN IMPACT ON CREDIT AVAILABILITY HE SAYS LARGELY BECAUSE OF LENDERS' COMPLAINTS CONGRESS IS LIKELY TO PASS THIS YEAR A BILL THAT WOULD ACCELERATE BANKRUPTCY CASES AND ESTABLISH A COMMISSION TO DETERMINE WHETHER MORE SWEEPING CHANGES IN BANKRUPTCY LAWS ARE NEEDED CORPORATE BANKRUPTCIES ESPECIALLY CAN TURN INTO MARATHONS OFTEN ENRICHING ARMIES OF LAWYERS AND ACCOUNTANTS AT THE EXPENSE OF CREDITORS LTV CORP IS JUST EMERGING FROM BANKRUPTCY PROCEEDINGS AFTER SEVEN YEARS OFTEN THE DELAYS HELP THE COMPANIES IN BANKRUPTCY BUT SOMETIMES THEY HAVE THE OPPOSITE EFFECT ENSNARING MANAGERS OF TROUBLED COMPANIES IN COURT PROCEEDINGS INSTEAD OF GIVING THEM TIME TO RUN THE BUSINESS THAT CAN MAKE IT EVEN HARDER FOR THE COMPANIES TO GET A FRESH START AS THE LAW INTENDED IN MR ANTONELLI'S CASE THE THREAT OF PROTRACTED NEGOTIATIONS LED CREDITORS TO AGREE TO A GENEROUS SETTLEMENT OTHERWISE THEY RISKED MONTHS OF COSTLY LITIGATION THAT WOULD HAVE DRAINED OFF THE ASSETS THAT THEY HOPED TO SHARE FEES FOR THE NEARLY 100 LAWYERS ACCOUNTANTS AND APPRAISERS INVOLVED IN THE CASE WERE RUNNING AS HIGH AS 1 MILLION A MONTH ALL PAID BY THE DEBTOR WITHOUT A SETTLEMENT THE BANKRUPTCY PROCESS ALLOWS THIS TYPE OF SITUATION TO CAREEN ON INDEFINITELY SAYS GEORGE COVUCCI A LAWYER WITH ARNOLD & PORTER WHICH REPRESENTED SOME OF THE CREDITORS BANKRUPTCIES HAVE EXPLODED SINCE A 1978 REVISION OF THE BANKRUPTCY LAW MADE IT EASIER TO WIPE OUT DEBTS IN COURT LAST YEAR BANKRUPTCY FILINGS TOTALED 971517 UP 178 FROM 10 YEARS EARLIER THE 900874 PERSONAL BANKRUPTCIES ACCOUNTED FOR MOST OF THEM AND COST CREDITORS 215 BILLION LAST YEAR VISA ESTIMATES CORPORATE BANKRUPTCIES TOTALED 70643 UP SHARPLY OVER 10 YEARS THOUGH DOWN FROM THE PEAK IN 1987 ONE FACTOR BEHIND THE SURGE IS THE TREACHEROUS ECONOMIC CLIMATE OF THE PAST DECADE WITH LURCHES IN INTEREST RATES COLLAPSING REALESTATE VALUES AND BANKING AND THRIFTINSTITUTION CRISES BUT LENDERS ALSO BLAME AN ATTITUDINAL SEA CHANGE THAT SEEMS TO HAVE ALL BUT WIPED AWAY THE STIGMA OF BANKRUPTCY BANKRUPTCY HAS BECOME AN ACCEPTABLE STRATEGY FOR DEALING WITH VARIOUS ECONOMIC PROBLEMS SAYS NORMAN OWEN THE VICE PRESIDENT FOR CREDIT MANAGEMENT AT LEVI STRAUSS & CO FOR EXAMPLE A BUSINESS PROFESSOR EARNING 50000 A YEAR AT WESTERN MARYLAND COLLEGE FILED FOR BANKRUPTCY AFTER BORROWING 191000 ON 27 CREDIT CARDS TO SUPPORT HIS LIFESTYLE ACCORDING TO A VISA DEPOSITION ASKED IN A DEPOSITION ABOUT THE DEBT BUILDUP THE PROFESSOR EXPLAINED HEY IT WAS THE EIGHTIES ALTHOUGH VISA AND CARDISSUING BANKS ARE WORKING HARDER TO RECOVER MONEY FROM BANKRUPT CARDHOLDERS CRITICS SAY THEY WON'T ATTACK THE CULTURE OF CREDIT THAT OFTEN LEADS TO BANKRUPTCY MICHAEL STATEN DIRECTOR OF PURDUE UNIVERSITY'S CREDIT RESEARCH CENTER CONTENDS THAT CREDITORS' LAXITY IN SCREENING POTENTIAL BORROWERS EXPLAINS WHY BANKRUPTCY DOESN'T CARRY ITS FORMER STIGMA HIS RESEARCH SHOWS THAT WITH CARD ISSUERS AGGRESSIVELY PURSUING NEW CUSTOMERS MORE THAN 16 OF DEADBEATS CAN OBTAIN NEW LINES OF CREDIT WITHIN ONE YEAR OF FILING FOR BANKRUPTCY CONVENTIONAL WISDOM HOLDS THAT FORMER BANKRUPTS CAN BEGIN THE TASK OF REESTABLISHING CREDIT THROUGH SMALL SECURED INSTALLMENT LOANS OBTAINED FROM LOCAL LENDERS WHO ARE IN A POSITION TO KNOW AND MONITOR THE BORROWER'S FINANCIAL STATUS MR STATEN SAYS IN FACT HE SAYS BANKRUPTS FREQUENTLY CAN GET NEW CREDIT CARDS CAR LOANS AND RETAILERS' CHARGE CARDS SHORTLY AFTER DECLARING FOR BANKRUPTCY CORPORATE BANKRUPTCIES HAVE ALSO COME UNDER ATTACK FOR LETTING POOR PERFORMERS OFF THE HOOK THERE IS AN ELEMENT OF REVERSE DARWINISM SAYS BRUCE SIMON A LAWYER WHO REPRESENTS LABOR UNIONS IN BANKRUPTCY PROCEEDINGS THIS IS PARTICULARLY TRUE IN INDUSTRIES PLAGUED WITH OVERCAPACITY SUCH AS STEELMAKING AND AIRLINES YOU END UP GETTING SURVIVAL OF THE UNFITTEST HE SAYS FOR EVERY LTV OR SHARON STEEL THAT IS PRESERVED THERE IS A BETHLEHEM STEEL THAT SUFFERS BECAUSE IT COMPETES WITH A REORGANIZED COMPANY THAT REDUCED ITS DEBT AND SOMETIMES EVADED OTHER OBLIGATIONS ROBIN PHELAN PRESIDENTELECT OF THE AMERICAN BANKRUPTCY INSTITUTE AN EDUCATIONAL GROUP CONCEDES THAT THE AUTHORS OF THE BANKRUPTCY CODE PROBABLY DIDN'T CONTEMPLATE THAT BUSINESSES COULD REMAIN IN CHAPTER 11 FOR LONG PERIODS OF TIME WITHOUT PAYING CERTAIN OBLIGATIONS AND THUS COULD GAIN A COMPETITIVE ADVANTAGE PARTICULARLY IN PRICESENSITIVE INDUSTRIES AND LIKE THE INDIVIDUALS THAT GET NEW CREDIT CARDS SOON AFTER DECLARING BANKRUPTCY COMPANIES OFTEN FIND IT EASIER TO BORROW MONEY AFTER THEY FILE THAN BEFORE THE REASON LOANS TO COMPANIES IN BANKRUPTCY GET PREFERRED STATUS IN A DISTRIBUTION OF ASSETS OVER MANY OTHER DEBTS EARLIER THIS YEAR LESLIE FAY COS FILED FOR CHAPTER 11 PROTECTION FOLLOWING AN ACCOUNTING SCANDAL THAT SCARED AWAY THE DRESSMAKER'S LENDERS RIGHT AFTER THE FILING CITIBANK AGREED TO LEND THE CASHSTRAPPED COMPANY 100 MILLION BUT SOMETIMES BANKRUPTCY PROCEEDINGS BECOME SO PROLONGED AND COMPLEX THAT COMPANIES DON'T EMERGE INTACT EASTERN AIRLINES IS OFTEN CITED AS THE PRIME EXAMPLE OF A COMPANY THAT WITH BANKRUPTCYCOURT APPROVAL FRITTERED AWAY A NET WORTH OF MORE THAN 1 BILLION DURING A FUTILE TWOYEAR EFFORT TO FLY ITS WAY OUT OF TROUBLE AND REORGANIZE UNDER CHAPTER 11 LAST YEAR CONGRESS TRIED AND FAILED TO PASS A BANKRUPTCYREFORM BILL THE MEASURE HAD STRONG SUPPORT FROM CONSUMER LENDERS SUCH AS CREDITCARD ISSUERS WITH SOARING BANKRUPTCY LOSSES BUT A GROUP OF BIG BANKS LED BY JP MORGAN & CO TURNED AGAINST IT AT THE LAST MINUTE THEY FEARED LOSING OUT AS A RESULT OF PROVISIONS REQUIRING CHAPTER 11 COMPANIES TO PUT PAYMENTS TO PENSION PLANS AND EMPLOYEE HEALTH CARE ABOVE OTHER CREDITORS' CLAIMS THIS YEAR THE BILL STANDS A MUCH BETTER CHANCE OF PASSING ONE AIM OF THE LEGISLATION IS TO ACCELERATE CORPORATE REORGANIZATIONS UNDER CHAPTER 11 CURRENT LAW GIVES DEBTORS FOR 120 DAYS THE EXCLUSIVE RIGHT TO FILE A DEBTREPAYMENT OR REORGANIZATION PLAN WHILE CREDITORS ARE BARRED FROM PRESENTING THEIR OWN PROPOSALS TO THE COURT BUT COURTS FREQUENTLY EXTEND THIS SOCALLED EXCLUSIVITY PERIOD FOR INSTANCE COLUMBIA GAS SYSTEM INC FILED FOR CHAPTER 11 PROTECTION ON JULY 31 1991 IN AN EFFORT TO BREAK MORE THAN 4000 HIGHPRICED GAS PURCHASE CONTRACTS THAT IT HAD SIGNED BEFORE PRICES PLUNGED THE PIPELINE COMPANY HAS YET TO PROPOSE A REORGANIZATION PLAN BECAUSE THE COURT HAS KEPT EXTENDING THE EXCLUSIVITY PERIOD IN COLUMBIA'S CASE THE DELAYS REFLECT THE DIFFICULTY OF WORKING OUT COMPLEX LEGAL ISSUES POSED BY THE BANKRUPTCY FILING OF A REGULATED UTILITY BUT OFTEN DEBTORS HAVE USED THESE DELAYS WHICH OFTEN OCCUR AS THE VALUE OF THE BANKRUPT FIRM OR PROPERTY CONTINUES TO ERODE AS A NEGOTIATING WEAPON TO EXTRACT CONCESSIONS FROM CREDITORS SAYS KAREN SHAW A WASHINGTON FINANCIAL CONSULTANT THE BANKRUPTCY BILL WOULD LIMIT TOTAL EXTENSIONS TO ONE YEAR AND EXPAND BANKRUPTCY COURTS' POWER TO EXPEDITE CASES IT ALSO PROPOSES CREATION OF A NEW CHAPTER 10 PILOT PROGRAM FOR BUSINESSES WITH DEBTS TOTALING LESS THAN 25 MILLION IN AN EFFORT TO FIND WAYS TO EXPERIMENT WITH ACCELERATED PROCEDURES FOR SMALL COMPANIES BUT THE LAW WOULDN'T STOP STILLSOLVENT COMPANIES FROM FILING AND CONTINUING TO OPERATE UNDER CHAPTER 11 THEY HAVE BEEN ABLE TO USE BANKRUPTCY PROCEEDINGS TO ESCAPE OBLIGATIONS OR LIMIT LIABILITIES FOR ENVIRONMENTAL OR PRODUCTLIABILITY PROBLEMS JOHNS MANVILLE CORP NOW MANVILLE CORP SOUGHT PROTECTION TO LIMIT ASBESTOS CLAIMS AH ROBINS NOW A UNIT OF AMERICAN HOME PRODUCTS CORP DID THE SAME TO HANDLE CLAIMS CONCERNING THE DALKON SHIELD CONTRACEPTIVE DEVICE CONTINENTAL AIRLINES ENTERED CHAPTER 11 TO BREAK A UNION CONTRACT AND TRANS WORLD AIRLINES USED IT TO ESCAPE PENSION OBLIGATIONS OVER THE LAST DECADE OR MORE THE BANKRUPTCY COURTS HAVE BEEN GIVEN THE TASK OF DEVELOPING AN INDUSTRIAL POLICY MR SIMON SAYS TO DEREGULATE INDUSTRIES SUCH AS AIRLINES AND LEAVE THE FALLOUT FROM THESE DECISIONS TO THE BANKRUPTCY COURTS IS ABSURD GENERALLY BANKS AND FINANCE COMPANIES SUPPORT THE LEGISLATION ALTHOUGH BIG BANKS AND OTHER MAJOR LENDERS TO BANKRUPT COMPANIES ARE TRYING TO KNOCK OUT PROVISIONS THAT WOULD REQUIRE DEBTORS TO MEET CERTAIN HEALTH AND PENSION OBLIGATIONS ONE PROVISION WOULD REQUIRE COMPANIES IN CHAPTER 11 TO USE PROCEEDS FROM NEW LOANS TO PAY RETIREMENT BENEFITS FIRST RATHER THAN TO FINANCE CONTINUING OPERATIONS THE AMERICAN BANKERS ASSOCIATION HAS WARNED CONGRESS THAT THIS WOULD DISCOURAGE BANKS FROM LENDING TO CHAPTER 11 COMPANIES AND FORCE MANY ADDITIONAL COMPANIES INTO CHAPTER 7 LIQUIDATION IN WHICH ASSETS ARE SOLD OFF TO MEET CREDITORS' CLAIMS AND THE COMPANY FOLDS THE BILL'S PRIMARY CHANGE FOR INDIVIDUALS WOULD SEEK TO ENCOURAGE DEBTORS TO REORGANIZE THEIR FINANCES AND PAY OFF THEIR DEBTS OVER THREE TO FIVE YEARS UNDER CHAPTER 13 RATHER THAN LIQUIDATING ALL THEIR ASSETS TO PAY A PERCENTAGE OF THEIR DEBTS UNDER CHAPTER 7 THE BILL WOULD RAISE TO 1 MILLION FROM 350000 THE CEILING ON PERSONAL DEBTS FOR A CHAPTER 13 FILING MANY DEBTORS WOULD RATHER WORK OUT A PAYMENT PLAN UNDER CHAPTER 13 BECAUSE IT LEAVES THEM WITH A MUCH BETTER CREDIT RATING AFTER EMERGING FROM BANKRUPTCY CREDITORS ALSO PREFER CHAPTER 13 REORGANIZATION BECAUSE THEY USUALLY END UP WITH MORE MONEY 9306170024 930617 PEPPERAND SALT TO THE NEWER BUY VIRGO SELL TAURUS I THEN AND THERE DECLINED IT 9306170023 930617 HOLLYWOOD A CLOSEUP LOOK BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY RICHARD TURNER AND THOMAS R KING THEATER OWNERS FEEL ROUGHED UP BY COLUMBIA PICTURES' LAST ACTION HERO STUDIOS AND EXHIBITORS WAGE ETERNAL BEHINDTHESCENES WARS OVER SPLITTING BOXOFFICE RECEIPTS ESPECIALLY WITH BIG SUMMER EVENT FILMS BUT THERE'S PARTICULAR ILL WILL TOWARD COLUMBIA'S HERO THE ARNOLD SCHWARZENEGGER MOVIE OPENING TOMORROW WITH UNDERWHELMING WORD OF MOUTH MANY THEATER OWNERS COMPLAIN THAT THE SONY CORP UNIT IS FORCING THEM TO PONY UP HUGE ADVANCE PAYMENTS WHICH IN SOME CASES CAN BE EQUAL TO HALF A THEATER'S GROSS ON LAST YEAR'S HIT A FEW GOOD MEN WITH NO REFUND IF HERO DISAPPOINTS COLUMBIA ALSO DEMANDS THAT THEATERS EVEN IN TINY TOWNS PLAY IT FOR A MINIMUM OF FOUR WEEKS TWICE NORMAL IT'S NOT SO MUCH THAT EXHIBITORS WORRY THAT HERO WILL BOMB THEY ROLL WITH THE PUNCHES BUT THAT COLUMBIA HAS BEEN INFLEXIBLE WITH THEM FOR MONTHS EVEN ON DISAPPOINTING MOVIES COLUMBIA DECLINED COMMENT BUT EXECUTIVES CROW PRIVATELY THAT ITS HOT STREAK MERITS THE TOUGH TERMS LOOK FOR ROMANCE IN THE CARPATHIANS AT A THEATER NEAR YOU FILMMAKERS FIND EASTERN EUROPE A CHEAP PLACE TO WORK BUT A TOUGH PLACE TO FIND FOOD AND LODGING FOR CREWS FORTY DAYS OF SHOOTING IN BUCHAREST COST THE SAME AS 20 IN THE US SAYS FILM PRODUCER CHARLES BAND HIS FULL MOON ENTERTAINMENT CONSTRUCTS A TOWN FOR ONE FILM THAT COSTS 500000 IT WOULD HAVE COST 2 MILLION IN HOLLYWOOD TO COPE WITH LACK OF AMENITIES FULL MOON BUILDS ITS OWN RESIDENCES AND RESTAURANT ITALY USED TO BE A HOT PLACE TO MAKE LOWBUDGET FILMS UNTIL THE DOLLAR TUMBLED MR BAND WORKED ON 30 MOVIES IN ITALY IN THE MID1980S BEFORE MOVING EAST ALONG WITH OTHER PRODUCERS HIS COMPANY WILL HAVE SHOT 20 PICTURES IN ROMANIA BY YEAR END MOST OF THE MOVIES WITH BUDGETS OF 1 MILLION TO 2 MILLION GO DIRECTLY TO HOME VIDEOS FILMS INCLUDE A SCIFI WESTERN AND THREE VAMPIRE MOVIES FILMED IN TRANSYLVANIA WHERE LOCAL TOWNFOLK WERE BEMUSED SAYS MR BAND DISNEY IS GRUMPY ABOUT A VIDEOAGE MASS DELUSION WALT DISNEY CO WHICH REOPENS ITS FIRST AND FAIREST ANIMATED CLASSIC SNOW WHITE AND THE SEVEN DWARFS ON JULY 2 FACES A UNIQUE CHALLENGE MANY PEOPLE SWEAR THEY HAVE SEEN IT ON VIDEO OR TV PART OF THE CONFUSION IS OVER A LOWBUDGET FILM ON THE STORY FROM ANOTHER COMPANY PINOCCHIO WHICH HAD BEEN ON CABLE AND VIDEO PERFORMED WOODENLY GROSSING ONLY 19 MILLION BUT SNOW WHITE IS PROMOTED AS THE ULTIMATE DISNEY FAMILY JEWEL IT HAS NEVER BEEN RELEASED ON VIDEO NEVER BEEN ON TV NOR IN THEATERS SINCE A RUN IN 1986 NOW DISNEY READIES A TV AD BLITZ AND HOPES SNOW WHITE WILL MATCH ITS MOST SUCCESSFUL ANIMATED RERELEASE 101 DALMATIANS WHICH GROSSED 60 MILLION DISNEY'S RICHARD COOK SAYS WE'RE GOING TO MAKE SURE WE REMIND EVERYONE SNOW WHITE' HASN'T BEEN OUT MUCH ADO ABOUT NOTHING DOUBLES ITS NUMBER OF SCREENS TO 150 TOMORROW WITH WHAT SAMUEL GOLDWYN CO CALLS THE FASTESTGROSSING ART FILM EVER THE IDEA IS TO COUNTERPROGRAM SUMMER'S SPATE OF BROADAPPEAL MOVIES GOLDWYN WILL ADD SCREENS SPARINGLY THROUGH THE MOVIECROWDED SUMMER THEN EXPAND IN AUGUST WITH CONTINUED PLUGGING UNTIL OSCAR SEASON ABANDON THE VCR AND GO TO THE MOVIES IS THE IMPLIED MESSAGE OF AN AD CAMPAIGN THAT BEGINS TODAY FOR LOEWS THEATRES RADIO ADS PROMISE FREE SODAS TO PATRONS WHO WAIT OVER THREE MINUTES FOR CONCESSIONS AND FREE MINTS AFTER THE SHOW THE ODDS ARE STAGGERING AGAINST DOING SO BUT TINY PUBLICLYHELD PRODUCERS ENTERTAINMENT GROUP MANAGES TO GET BOTH A MOVIE DISNEY'S WHAT'S LOVE GOT TO DO WITH IT AND A PRIMETIME TV SHOW CBS'S UPCOMING DAVE'S WORLD OFF THE GROUND STILL IT'S ONLY A FIRST STEP THE SHOWS MUST ALSO BE HITS FOR INVESTORS TO DO WELL EMPHASIS ON FAMILY FILMS MAY CAUSE A GLUT OF CHEAP VIDEOS PRICED TO SELL STUDIOS MAKE MORE MONEY FROM HOME VIDEOS THAN THEY DO IN THEATERS AND THEY SEEK OUT THOSE RARE MOVIES THAT CAN SELLTHROUGH DIRECTLY TO CONSUMERS FOR 20 OR SO RATHER THAN SELLING TO VIDEO STORES FOR RENTAL THE SELLTHROUGH FORMULA COUNTS ON KID APPEAL BUT SUCH VIDEOS ARE EXPENSIVE TO MARKET BECAUSE OF HIGHER MANUFACTURING AND ADVERTISING COSTS ALADDIN ALREADY IS SLATED FOR OCTOBER AND JURASSIC PARK PROBABLY WILL WAIT FOR NEXT SPRING HOLLYWOOD'S NEW INFATUATION WITH FAMILYORIENTED FILMS LEADS TO A HOST OF OTHER POTENTIAL SELLTHROUGH CANDIDATES FROM THIS SUMMER'S RELEASES LAST ACTION HERO CONEHEADS ONCE UPON A FOREST DENNIS THE MENACE AND MORE IN ALL OF 1992 ONLY 13 FILMS WERE SELLTHROUGH THE YEAR BEFORE ONLY EIGHT SAYS PAUL KAGAN ASSOCIATES BUT MANY EXECUTIVES WORRY THERE IS A LIMIT TO THE MARKET GEORGE KRIEGER PRESIDENT OF CBS/FOX VIDEO ADDS THAT RETAILERS GUARD THEIR SHELF AND DISPLAY SPACE IT'S PRECIOUS BRIEFS FIGURING PARISIANS WOULDN'T GET THE JOKE TWENTIETH CENTURY FOX RELEASES HOT SHOTS PART DEUX IN FRANCE AS HOT SHOTS 2 HYPING JURASSIC PARK CINEPLEX ODEON HAWKS TUB REX A PLASTIC BUCKET STAMPED WITH DINOSAURS AND FILLED WITH POPCORN FOR 6 BUT THEY THROW IN A COKE 9306170022 930617 CREDIT MARKETS BOND PRICES DRIFT HIGHER AS INVESTORS IGNORE LATEST DATA ON HOUSING STARTS FACTORY OUTPUT BY JOHN HUGHES AND THOMAS D LAURICELLA SPECIAL TO THE WALL STREET JOURNAL NEW YORK A FLURRY OF ECONOMIC NEWS COULDN'T GET INVESTORS OFF THE SIDELINES AND INTO THE BOND MARKET ALTHOUGH PRICES DRIFTED MODESTLY HIGHER TRADERS SAID THAT ACTIVITY WAS LACKLUSTER THE BOND MARKET'S BELLWETHER SECURITY THE 30YEAR TREASURY BOND ENDED AT A PRICE OF 103 29/32 TO YIELD 681 COMPARED WITH 103 23/32 TO YIELD 683 TUESDAY THE PRICE CHANGE TRANSLATES INTO A GAIN OF ABOUT 1/8 POINT OR ABOUT 125 FOR A BOND WITH A 1000 FACE AMOUNT SHORTERTERM SECURITIES POSTED MUCH SMALLER GAINS I THINK WE'LL PROBABLY SIT LIKE THIS FOR A WHILE SAID JAMES KENNEY MANAGER OF GOVERNMENT TRADING AT PRUDENTIAL SECURITIES INC BOND DEALERS SAID THAT INVESTORS SEEM TO BE SPINNING THEIR WHEELS WHILE SIZING UP POLITICAL DEVELOPMENTS ON CAPITOL HILL SPECIFICALLY THE NEGOTIATIONS BETWEEN PRESIDENT CLINTON AND CONGRESS OVER THE DEFICIT REDUCTION PLAN CURRENTLY THE PRESIDENT AND MEMBERS OF THE SENATE FINANCE COMMITTEE ARE STRUGGLING TO FIND A COMPROMISE TO THE BILL ONE MAJOR REASON FOR THIS YEAR'S BOND MARKET RALLY WAS THE PROSPECT OF A SIGNIFICANTLY SMALLER BUDGET DEFICIT BUT NOW SOME INVESTORS WONDER WHETHER THE DEFICIT WILL BE REDUCED AS MUCH AS INITIALLY ENVISIONED BY THE WHITE HOUSE MEANWHILE INVESTORS IGNORED THE LATEST ECONOMIC NEWS IN THE MORNING THE COMMERCE DEPARTMENT REPORTED THAT HOUSING STARTS POSTED THE FIRST BACKTOBACK GAIN IN 14 MONTHS DURING MAY RISING 24 TO AN ANNUAL RATE OF 1244 MILLION UNITS LATER YESTERDAY MORNING THE FEDERAL RESERVE REPORTED THAT INDUSTRIAL PRODUCTION GREW 02 IN MAY PRICES DIDN'T BUDGE AFTER THE RELEASE OF THE DATA AND THE MARKET HELD NEARLY UNCHANGED UNTIL LATE IN THE DAY WHEN MILD BUYING EMERGED BEFORE THE CLOSE OF FUTURES TRADING AT THE CHICAGO BOARD OF TRADE BUT SINCE SO FEW SECURITIES CHANGED HANDS YESTERDAY TRADERS SAY THE PRICE GAINS WERE EXAGGERATED BUT WHILE THE SECONDARY MARKET SNOOZED THE MARKET FOR NEW BOND ISSUES BUSTLED YESTERDAY IN THE TAXEXEMPT MUNICIPAL BOND MARKET MORE THAN 3 BILLION OF NEW SECURITIES WERE ISSUED INCLUDING 2 BILLION OF SHORTTERM NOTES BY CALIFORNIA IN THE CORPORATE BOND MARKET 31 BILLION OF BONDS WERE SOLD INCLUDING A TIME WARNER INC OFFERING OF 21 BILLION OF ZEROCOUPON CONVERTIBLE BONDS OTHER COMPANIES ISSUING DEBT IN THE US YESTERDAY INCLUDED NORWEGIAN INDUSTRIAL GROUP NORSK HYDRO AS WITH 300 MILLION OF 30YEAR DEBENTURES AND AMERICAN EXPRESS CREDIT CORP A FINANCING UNIT OF AMERICAN EXPRESS CO WITH 300 MILLION OF SEVENYEAR NOTES IN EUROPE THE CANADIAN PROVINCE OF ONTARIO MET PLENTIFUL DEMAND FOR ITS LATEST OFFERING OF GLOBAL BONDS DENOMINATED IN US DOLLARS PROMPTING THE PROVINCE TO DOUBLE THE ISSUE TO 2 BILLION FOLLOWING THE TYPICAL PROCEDURE FOR GLOBAL BOND OFFERINGS THE ISSUE WAS ANNOUNCED TUESDAY AND MARKETING BEGAN YESTERDAY WITH FORMAL PRICING DUE TODAY THE OFFICIAL PRICE TALK FOR ONTARIO'S SEVENYEAR BONDS IS FOR A YIELD OF BETWEEN 064 AND 066 PERCENTAGE POINT ABOVE THE YIELD ON THE SEVENYEAR US TREASURY NOTES THOUGH WITH THE STRENGTH OF DEMAND UNDERWRITERS SAID THE YIELD ALMOST CERTAINLY WILL BE AT THE LOW END OF THAT RANGE YESTERDAY THE YIELD ON SEVENYEAR TREASURY NOTE WAS QUOTED AT 554 THE TRANSACTION WILL BE ONTARIO'S FOURTH DOLLARDENOMINATED GLOBAL BOND ISSUE FOLLOWING A 3 BILLION GLOBAL OFFERING IN JANUARY ONTARIO MAY SELL AS MUCH AS 239 BILLION OF DEBT IN ITS LATEST ISSUE UNDER ITS FILING WITH THE SECURITIES AND EXCHANGE COMMISSION DESPITE RECENT CONCERNS THAT CANADIAN PROVINCES WOULD BE ISSUING A LOT MORE DEBT SOON THE SPREAD OR GAP BETWEEN YIELDS OF CANADIAN YANKEE BONDS AND TREASURYS HAS NARROWED THIS HAS MADE THE BONDS RELATIVELY MORE EXPENSIVE FOR US INVESTORS A YANKEE BOND IS A DOLLARDENOMINATED BOND SOLD BY A FOREIGN ISSUER IN THE US THE OFFERING IS BEING MANAGED BY SALOMON BROTHERS INC GOLDMAN SACHS & CO AND CANADIAN SECURITIES FIRM SCOTIAMCLEOD INC THERE WAS ANOTHER SUPPLY TORRENT IN THE MUNICIPAL BOND MARKET YESTERDAY DOMINATED BY CALIFORNIA'S 2 BILLION OF 1993 REVENUE ANTICIPATION WARRANTS IN SECONDARY DEALINGS PRICES WERE NARROWLY MIXED AT THE CLOSE METROPOLITAN SEATTLE'S 565 GENERAL OBLIGATION BONDS OF 2020 FINISHED UNCHANGED AT 97 7/8 TO YIELD 580 CALIFORNIA'S 2 BILLION OF RAWS WERE WON BY SIX FIRMS SAID THE OFFICE OF THE STATE'S TREASURER KATHLEEN BROWN AMONG THE WINNERS THE AVERAGE NET INTEREST COST IS 214 THE RAWS ARE DUE DEC 23 1993 HOWEVER THEY HAVE AN AUG 10 CALL DATE AND ARE CALLABLE AT ANY TIME AFTER THAT DATE IF CALIFORNIA DESIRES THE SECURITIES WERE PRICED TO YIELD EITHER 175 OR 200 ON THE AUGUST 10 CALL DATE PROCEEDS FROM THE SALE WILL BE USED TO HELP CALIFORNIA RETIRE OUTSTANDING REVENUE ANTICIPATION NOTES THE FUNDS WILL ALSO BE USED TO MEET THE STATE'S NEARTERM CASH FLOW NEEDS MOODY'S INVESTORS SERVICE INC HAS RATED THE RAWS MIG1 AND STANDARD & POOR'S CORP HAS ASSIGNED AN SP1 RATING BUYING INTEREST IN THE RAWS WAS SUBSTANTIAL AND A SPOKESWOMAN FOR THE STATE TREASURER SAID THE DEMAND INDICATES THAT CALIFORNIA SECURITIES ARE STILL A VERY WELLREGARDED CREDIT IN THE MARKETPLACE THE TREASURY DEPARTMENT ANNOUNCED DETAILS YESTERDAY OF NEXT WEEK'S TWOYEAR AND FIVEYEAR NOTE AUCTIONS THE TREASURY SAID IT WILL SELL 16 BILLION OF TWOYEAR NOTES ON TUESDAY AND 11 BILLION IN FIVEYEAR NOTES ON WEDNESDAY THE SIZE OF THE TWOYEAR NOTE OFFERING IS UP 250 MILLION FROM THE PREVIOUS AUCTION IN MAY AS HAD BEEN EXPECTED THE TREASURY SAID IN MAY THAT IT WOULD SHIFT MORE OF THE GOVERNMENT'S BORROWING TO SHORTTERM ISSUES AND AWAY FROM THE 30YEAR BOND IN AN EFFORT TO REDUCE INTEREST EXPENSES THE SIZE OF THE FIVEYEAR OFFERING WAS UNCHANGED TODAY THE LABOR DEPARTMENT WILL REPORT ON THE NUMBER OF FIRSTTIME FILINGS FOR STATE UNEMPLOYMENT INSURANCE CLAIMS MADE LAST WEEK ECONOMISTS GENERALLY EXPECT CLAIMS INCREASED BY ONLY 1000 IN THE WEEK ENDED JUNE 12 TO A SEASONALLY ADJUSTED LEVEL OF 346000 9306170020 930617 BUSINESS BRIEF CIRCUS CIRCUS ENTERPRISES INC LAS VEGAS FIRM TO JOIN BID FOR AUSTRALIA CASINO LICENSE CIRCUS CIRCUS ENTERPRISES INC MOVING FOR THE FIRST TIME TO EXPAND OUTSIDE THE US AGREED TO JOIN WITH TWO AUSTRALIAN COMPANIES TO BID ON A LICENSE FOR A PROPOSED CASINO IN SYDNEY ANALYSTS SPECULATED THAT THE PROJECT COULD ULTIMATELY COST MORE THAN 350 MILLION CIRCUS CIRCUS SAID IT WOULD OWN 50 OF THE PROPOSED CASINO WITH ITS PARTNERS SPLITTING THE OTHER 50 THE AUSTRALIAN PARTNERS ARE CONSOLIDATED PRESS HOLDINGS LTD AND ITS 45OWNED AFFILIATE NINE NETWORK AUSTRALIA LTD CONSOLIDATED PRESS IS A MEDIA COMPANY OWNED BY KERRY PACKER AN AUSTRALIAN BUSINESSMAN NINE NETWORK OWNS AUSTRALIA'S TOP TELEVISION NETWORK AMONG OTHER MEDIA INVESTMENTS BY ALIGNING ITSELF WITH MR KERRY LAS VEGASBASED CIRCUS CIRCUS APPEARED TO BE A STRONG CONTENDER FOR THE POTENTIALLY LUCRATIVE LICENSE GAMBLING HAS LONG FLOURISHED IN AUSTRALIA WHERE IT IS SPONSORED BY THE GOVERNMENT GOVERNMENT OFFICIALS ARE EXPECTED TO AWARD THE SYDNEY LICENSE BY FEBRUARY 9306170019 930617 YOUR MONEY MATTERS AS GRADS START TO REPAY STUDENT LOANS HERE'S A PRIMER ON WAYS TO EASE BURDEN BY LYNN ASINOF STAFF REPORTER OF THE WALL STREET JOURNAL IMAGINE RACKING UP 15000 OR 20000 OF DEBT BEFORE YOU EVEN HAVE YOUR FIRST JOB WELCOME TO THE WORLD OF NEW COLLEGE GRADUATES WHO TOOK OUT STUDENT LOANS TO FINANCE THEIR EDUCATION FOR SOME THE TAB CAN BE A WHOLE LOT HIGHER AS MUCH AS 50000 FOR THOSE GRADUATING FROM LAW OR BUSINESS SCHOOL AND 100000 FOR THOSE JUST OUT OF MEDICAL SCHOOL NOW WITH DEGREES IN HAND THEY HAVE TO START PAYING IT ALL BACK AND IN TODAY'S WEAK ECONOMY MANY OF THIS SPRING'S GRADUATES ARE FINDING THAT THEY EITHER DON'T HAVE A JOB OR AREN'T MAKING NEARLY ENOUGH TO DO THAT BUT WHILE THE PROSPECTS CAN SEEM BLEAK THERE ARE A VARIETY OF WAYS TO GET STUDENT LOANS DEFERRED FORGIVEN RESTRUCTURED REFINANCED OR CONSOLIDATED IT'S NOT JUST NEW GRADS WHO CAN BENEFIT EITHER PEOPLE WHO STILL OWE MONEY ON A SCHOOL LOAN WHICH TYPICALLY RUNS FOR 10 YEARS CAN GET AT LEAST A LITTLE FINANCIAL BREATHING ROOM IF THEY NEED IT UNLIKE MORTGAGES WHICH NEVER HAVE CANCELLATION OR DEFERMENT OPTIONS STUDENT LOANS ACCOMMODATE THE NEEDS OF PEOPLE SAYS BETSY HICKS COORDINATOR OF FINANCIAL AID FOR HARVARD UNIVERSITY IF YOU DON'T HAVE A JOB BUT ARE ACTIVELY LOOKING YOU MAY BE ELIGIBLE FOR A DEFERMENT THAT MEANS YOU NOT ONLY DON'T HAVE TO PAY RIGHT AWAY BUT IN SOME CASES THE INTEREST METER WILL BE TURNED OFF FOR A WHILE THE GOVERNMENT GRANTS DEFERMENTS ON ITS LOANS FOR ABOUT A DOZEN REASONS INCLUDING RETURNING TO SCHOOL BEING PREGNANT IF RECENTLY OUT OF SCHOOL BEING TEMPORARILY DISABLED OR SERVING IN THE MILITARY PEOPLE WHO CAN'T MAKE ENDS MEET BUT DON'T QUALIFY FOR A DEFERMENT MAY BE ABLE TO GET A FORBEARANCE THAT SUSPENDS PRINCIPAL PAYMENTS ALTHOUGH INTEREST CONTINUES TO ACCRUE SOME BORROWERS CAN ACTUALLY GET CERTAIN LOANS FORGIVEN IF THEY MEET SPECIFIC CONDITIONS SUCH AS TEACHING IN A PARTICULAR AREA OR GOING INTO THE MILITARY FOR SOME LOANS THERE'S A SIXMONTH GRACE PERIOD AFTER GRADUATION BEFORE STUDENT LOAN REPAYMENTS BEGIN BUT ADVISERS SAY IT'S BEST TO CONTACT YOUR LENDER AS SOON AS YOU REALIZE THERE MIGHT BE TROUBLE THAT'S BECAUSE LENDERS HAVE A LOT OF FLEXIBILITY AS LONG AS THEY ARE CONVINCED THAT THE BORROWER INTENDS TO PAY IN ADDITION TO DEFERMENTS AND FORBEARANCES FOR EXAMPLE LENDERS ALSO OFFER THE OPTION OF GRADUATED REPAYMENT FEATURING LOW MONTHLY PAYMENTS THAT GRADUALLY INCREASE WHILE A 5000 LOAN AT 8 WOULD NORMALLY CARRY A MONTHLY PAYMENT OF 6067 A NEW GRADUATE OPTING FOR GRADUATED REPAYMENT WOULD PAY ONLY 3550 A MONTH AT FIRST AND END UP WITH A FINAL PAYMENT OF 10192 AFTER 10 YEARS ONE OF THE MAJOR HEADACHES OF MANAGING STUDENT LOANS IS THE FACT THAT STUDENTS SELDOM HAVE JUST ONE MOST STUDENTS PUT TOGETHER A PORTFOLIO OF LOANS AND CAN END UP WRITING SEVERAL CHECKS EACH MONTH AND DEALING WITH A VARIETY OF TERMS AND CONDITIONS A STUDENT COULD GRADUATE WITH FIVE DIFFERENT LOAN TYPES AND THEY COULD ALL HAVE DIFFERENT DEFERMENT PROVISIONS SAYS NANCI G CIRONE DIRECTOR OF FINANCIAL AID AT DARTMOUTH MEDICAL SCHOOL THAT'S ONE REASON WHY SOME PEOPLE OPT TO CONSOLIDATE THEIR SCHOOL LOANS UNDER THIS FEDERAL PROGRAM AVAILABLE THROUGH LENDERS SCHOOL LOANS TOTALING 7500 OR MORE CAN BE COMBINED SO THAT THE BORROWER WRITES ONLY ONE MONTHLY CHECK THE NORMAL 10YEAR REPAYMENT PERIOD CAN BE EXTENDED TO 20 OR EVEN 30 YEARS MAKING MONTHLY PAYMENTS MUCH LOWER THIS CAN BE A GOOD IDEA FOR PEOPLE WHO CAN'T COVER THEIR CURRENT MONTHLY PAYMENTS BUT CONSOLIDATION HAS A PRICE IN AN EXAMPLE FROM THE LOAN COUNSELING TASK FORCE A PERSON WITH 23000 IN SCHOOL LOANS FROM THREE DIFFERENT PROGRAMS PAYS 8442 LESS A MONTH BY CONSOLIDATING AND EXTENDING PAYMENT FOR 20 YEARS BUT OVER THE LIFE OF THE LOAN THAT PERSON WILL PAY 14336 MORE IN INTEREST CHARGES THE INCREASED COST COMES LARGELY FROM EXTENDING THE TERM OF THE LOAN BUT ALSO FROM THE 9 MINIMUM INTEREST RATE CHARGED ON CONSOLIDATED LOANS WITH SOME FEDERAL LOANS CARRYING INTEREST RATES AS LOW AS 5 CONSOLIDATION CAN INCREASE THE COST EVEN IF THE LOAN IS PAID OFF IN 10 YEARS LOANS TO THIS YEAR'S CROP OF GRADUATES ARE LARGELY IN THE 8 TO 10 RANGE THAT'S HIGHER THAN THE STUDENT LOANS BEING WRITTEN TODAY BUT MOST LOAN PROGRAMS DON'T GIVE THE STUDENT THE OPTION OF REFINANCING YOU ARE PRETTY MUCH STUCK WITH WHAT YOU GOT SAYS PATRICIA MCWADE DEAN OF FINANCIAL AID AT GEORGETOWN UNIVERSITY BUT THERE ARE EXCEPTIONS TWO TYPES OF LOANS THE SUPPLEMENTAL LOAN FOR STUDENTS AND THE PLUS LOAN FOR PARENTS CAN BE REFINANCED WITH SLS AND PLUS RATES SOON DROPPING TO 679 THAT CAN MAKE A LOT OF SENSE FOR THOSE PEOPLE WHO ARE REPAYING OLD 12 LOANS SAYS DIANE SAUNDERS SPOKESWOMAN FOR NELLIE MAE A NEW ENGLAND STUDENT LENDER STILL STUDENT LOAN RATES FOR THIS YEAR'S GRADUATES LOOK PRETTY GOOD COMPARED WITH OTHER TYPES OF LOANS ON THE MARKET1559 FOR AN UNSECURED PERSONAL LOAN AND 182 ON THE AVERAGE CREDIT CARD ACCORDING TO BANK RATE MONITOR THAT'S ONE REASON PEOPLE SHOULDN'T NECESSARILY RUSH TO PAY OFF THEIR SCHOOL LOANS WHAT YOU HAVE TO DO IS LOOK AT ALL OF YOUR DEBT AND PAY OFF THE HIGHEST INTEREST RATE DEBT FIRST SAYS KAREN SPERO A CLEVELAND FINANCIAL PLANNER FOR BORROWERS WHO HAVE A WAY OF TRADING THEIR STUDENT LOANS FOR HOMEEQUITY DEBT HOWEVER THE MOVE IS USUALLY BENEFICIAL THAT'S BECAUSE THE AVERAGE HOMEEQUITY LINE OF CREDIT IS NOW ONLY 683 ACCORDING TO BANK RATE MONITOR MOREOVER THAT INTEREST PAYMENT IS DEDUCTIBLE ON THE HOMEOWNER'S INCOME TAXES GIVEN THE SIZE OF TODAY'S LOANS IT'S NOT SURPRISING THAT SCHOOLS GO TO GREAT LENGTHS TO HELP THEIR STUDENTS MANAGE THEIR DEBT DARTMOUTH AND HARVARD ACTUALLY BRING IN OUTSIDE FINANCIAL PLANNERS TO WORK WITH THEIR GRADUATING MEDICAL SCHOOL STUDENTS LENDERS ALSO HAVE BECOME MORE AGGRESSIVE ABOUT HELPING STUDENTS COPE FLEET FINANCIAL GROUP PROVIDENCE RI FOR EXAMPLE HAS DEVELOPED A COMPUTER DISK NOW AVAILABLE THROUGH HIGH SCHOOLS AND UNIVERSITIES THAT NOT ONLY HELPS A STUDENT CREATE A MONTHLY BUDGET BUT ALSO SHOWS THE IMPACT OF VARIOUS LOAN AND REPAYMENT OPTIONS IT IS A GOOD TOOL FOR DOING A REALITY CHECK SAYS PAULA BECK SENIOR PRODUCT MANAGER FOR STUDENT LOANS NOTING THE DISK WORKS FOR EITHER NEW GRADUATES OR THOSE JUST APPLYING WE TRY TO PLANT THIS SEED EARLY WITH OUR BORROWERS PEOPLE HAVING TROUBLE MAKING STUDENT LOAN PAYMENTS CAN ASK TO NEGOTIATE NEW TERMS WITH THEIR LENDER HERE ARE SOME OF THE OPTIONS DEFERMENT POSTPONES REPAYMENT AND CAN TURN OFF THE INTEREST METER ON SOME LOANS GRANTED FOR ABOUT A DOZEN DIFFERENT REASONS FORBEARANCE POSTPONES REPAYMENT OF PRINCIPAL BUT INTEREST CONTINUES TO ACCRUE GRANTED FOR HARDSHIP CONSOLIDATION ALLOWS A BORROWER TO COMBINE STUDENT LOANS TOTALING 7500 OR MORE INTO A SINGLE DEBT CAN ALSO CUT MONTHLY PAYMENTS BY EXTENDING THE LENGTH OF THE LOAN TO AS MUCH AS 30 YEARS MINIMUM INTEREST RATE IS 9 GRADUATED REPAYMENT MAKES MONTHLY PAYMENTS SMALLER IN THE EARLY YEARS AND LARGER IN THE LATER YEARS AS ANNUAL INCOME INCREASES 9306170018 930617 WHO'S NEWS UNION BANK UNION BANK SAN FRANCISCO KANETAKA YOSHIDA 55 YEARS OLD VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER HAS BEEN ELECTED PRESIDENT AND CHIEF EXECUTIVE OFFICER AT THIS BANKING COMPANY HE SUCCEEDS TAISUKE SHIMIZU 57 WHO IS RETURNING TO THE PARENT COMPANY BANK OF TOKYO LTD AS MANAGING DIRECTOR TAKAHIRO MORIGUCHI 49 A GENERAL MANAGER IN THE PARENT COMPANY'S TOKYO OFFICE HAS BEEN ELECTED A DIRECTOR AND SUCCEEDS MR YOSHIDA AS VICE CHAIRMAN AND FINANCE CHIEF 9306170017 930617 MARKETING & MEDIA SIGNBOARD RHI IN COVENTURE NEW YORK SIGNBOARD HILL PRODUCTIONS A SUBSIDIARY OF HALLMARK CARDS INC AND RHI ENTERTAINMENT INC A PRODUCER OF FAMILY ORIENTED ENTERTAINMENT SAID THEY WILL PRODUCE 10 MADEFORTELEVISION MOVIES FOR THE ABC TELEVISION NETWORK BEGINNING IN THE 199495 SEASON THE COVENTURE IS THE FIRST TELEVISION PRODUCTION EFFORT FOR HALLMARK OUTSIDE ITS LONGRUNNING HALLMARK HALL OF FAME SERIES 9306170016 930617 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION EASTEX ENERGY INC AN OFFERING OF 22 MILLION SHARES HAROLD'S STORES INC AN OFFERING OF 600000 SHARES VIA DICKINSON & CO URBAN SHOPPING CENTERS INC AN INITIAL OFFERING OF 11120000 COMMON SHARES VIA MERRILL LYNCH & CO AG EDWARDS & SONS INC LEHMAN BROTHERS MORGAN STANLEY & CO AND DEAN WITTER REYNOLDS INC 9306170015 930617 MARKETING & MEDIA NOTED WHO'S NEWS VIACOM INC'S MTV NETWORK SAID JOE DAVOLA WILL RETURN TO THE MUSIC CHANNEL AS A SENIOR VICE PRESIDENT OF MTV PRODUCTIONS A NEW UNIT HE SPENT FIVE YEARS AT FOX BROADCASTING CO AS A SENIOR VICE PRESIDENT AT MTV PRODUCTIONS MR DAVOLA 37 WILL OVERSEE THE DEVELOPMENT OF FILMS COMMERCIALS MUSIC SPECIALS AND OTHER PROJECTS FOR NETWORK TV FIRSTRUN AND THE INTERNATIONAL MARKET AS WELL AS MOVIES FOR THEATRICAL RELEASE 9306170014 930617 WHO'S NEWS CREATIVE BIOMOLECULES INC CREATIVE BIOMOLECULES INC HOPKINTON MASS MICHAEL ROSENBLATT DIRECTOR OF THE DIVISION OF BONE AND MINERAL METABOLISM AT BOSTON'S BETH ISRAEL HOSPITAL WAS NAMED A DIRECTOR OF THIS BIOTECHNOLOGY COMPANY EXPANDING THE BOARD TO NINE MEMBERS 9306170013 930617 INTERNATIONAL EC MINISTERS AGREE ON SCALEDDOWN AID FOR WIDESCREEN TV LUXEMBOURG EUROPEAN COMMUNITY MINISTERS AGREED ON A WATEREDDOWN SUBSIDY PACKAGE TO HELP THE BROADCAST INDUSTRY AIR WIDESCREEN TELEVISION PROGRAMS EC OFFICIALS SAID THE PACKAGE TOTALING 228 MILLION EUROPEAN CURRENCY UNITS 274 MILLION OVER FOUR YEARS IS A STEP TOWARD HIGHDEFINITION TELEVISION BUT EUROPE'S ELECTRONICS INDUSTRY WHICH HAS WAGED AN UNSUCCESSFUL BATTLE FOR AN AMBITIOUS EC INDUSTRIAL POLICY ON HDTV EXPRESSED DOUBTS THE AID PACKAGE WOULD HELP THEM CATCH UP WITH THEIR JAPANESE AND US COMPETITORS FROM WIDESCREEN TELEVISION WE MIGHT MOVE ON TO HDTV BUT THAT'S NOT SURE SAID A SPOKESWOMAN FOR PHILIPS ELECTRONICS NV OF THE NETHERLANDS PHILIPS ISN'T MOVING INTO HDTV UNLESS THE MARKET DEMONSTRATES IT WANTS THE TECHNOLOGY PHILIPS AND THE OTHER MAJOR EUROPEAN CONSUMER ELECTRONICS CONCERN FRANCE'S STATEOWNED THOMSON SA WERE NEVERTHELESS PLEASED WITH THE EC DECISION WHICH WILL PAY FOR PRODUCING AND BROADCASTING WIDESCREEN PROGRAMS ALTHOUGH THE PACKAGE IS SUBSTANTIALLY LESS THAN THE INITIALLY PROPOSED 850 MILLION ECUS THE COMPANIES SAID IT SHOULD GIVE A BOOST TO SALES OF A NEW GENERATION OF WIDESCREEN TELEVISION SETS THE PHILIPS AND THOMSON SETS CAN RECEIVE PICTURES IN A 16BY9 FORMAT EQUIVALENT TO THAT OF 35MILLIMETER WIDESCREEN MOVIE FILM AN ADVANTAGE OVER THE NARROWER 5BY4 FORMAT OF ORDINARY TELEVISION SETS BUT THE 16BY9 PROGRAMS THE EC HAS DECIDED TO SUBSIDIZE WON'T NECESSARILY OFFER SUPERIOR PICTURE OR SOUND QUALITY PHILIPS AND THOMSON LAUNCHED THE 16BY9 SETS TWO YEARS AGO IN ANTICIPATION OF FULLBLOWN HDTV UNDER THE EC'S SOCALLED HDMAC STANDARD WHICH ALSO USES A 16BY9 FORMAT BUT THE HIGH COST OF THE PROPOSED HDMAC STANDARD PROVED UNPOPULAR WITH BROADCASTERS AND THE RAPID PACE OF TECHNOLOGICAL INNOVATION MADE HDMAC INCREASINGLY OBSOLETE MARTIN BANGEMANN THE EC INDUSTRY COMMISSIONER SAID THE NEW SUBSIDY PACKAGE WOULD PROVIDE THE CRITICAL MASS TO GET THE HDTV BALL ROLLING ADVOCATES OF THE EC PLAN ARGUE THAT ONCE 16BY9 PROGRAMMING IS MADE AVAILABLE CONSUMERS WILL BE MORE WILLING TO BUY WIDESCREEN TELEVISION THAT IN TURN IS SUPPOSED TO PREPARE CONSUMERS TO THE ADVENT OF HDTV 9306170012 930617 ADVISER ON HEALTH CALLS CLINTON'S PLAN PRETTY MUCH DONE' WASHINGTON A TOP ADMINISTRATION HEALTH ADVISER SAID MOST OF PRESIDENT CLINTON'S HEALTH PLAN IS PRETTY MUCH DONE AND ONLY AWAITS SOME DECISIONS BY THE PRESIDENT WALTER ZELMAN WHO LEFT HIS POST AS A CALIFORNIA INSURANCE OFFICIAL TO BECOME A TEMPORARY ADVISER TO THE ADMINISTRATION'S HEALTH TEAM TOLD REPORTERS YESTERDAY THAT DELAYS IN RELEASING THE PLAN ARE BECAUSE OF THE POLITICS OF GETTING THE PRESIDENT'S BUDGET PACKAGE THROUGH CONGRESS AND NOT INDECISION AMONG THE MAJOR DECISIONS REMAINING MR ZELMAN SAID ARE HOW TO FINANCE THE HEALTHCARE PLAN WHICH AIMS TO EXTEND HEALTH COVERAGE TO THE 37 MILLION PEOPLE WITHOUT INSURANCE WHETHER TO ALLOW BIG COMPANIES TO PROVIDE HEALTH COVERAGE OUTSIDE OF THE NEW SYSTEM THE SIZE OF GOVERNMENT SUBSIDIES TO HELP SMALL BUSINESSES AND LOWINCOME PEOPLE AFFORD HEALTH INSURANCE AND WHAT SPECIFICALLY SHOULD BE IN THE STANDARD BENEFITS PACKAGE MR ZELMAN ALSO CONFIRMED REPORTS THAT OPTIONS BEING CONSIDERED INCLUDE FINANCING HEALTH COVERAGE FOR ALL THROUGH A PAYROLL TAXCALLED A WAGEBASED PREMIUM ON EMPLOYERS AND WORKERS THIS WOULD REPLACE THE PREMIUMS FIRMS AND INDIVIDUALS NOW PAY THE ADMINISTRATION ALSO IS CONSIDERING A REQUIREMENT THAT ALL EMPLOYERS PAY A FLAT PREMIUM FOR HEALTH PLANS FOR EACH OF THEIR WORKERS MR ZELMAN ALSO SAID THE PRESIDENT COULD CHOOSE SOME COMBINATION OF THE PREMIUM OR PERCENTOFPAYROLL APPROACH IF THE ADMINISTRATION CHOOSES A PAYROLL TAX THE LEVY COULD VARY AMONG STATES OR AMONG THE REGIONAL HEALTH INSURANCE PURCHASING POOLS THAT THE ADMINISTRATION WANTS STATES TO ESTABLISH 9306170011 930617 LAW LEGAL BEAT SEC SEEKS TO BAR VICTOR POSNER FROM EVER LEADING PUBLIC FIRMS BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION IN ITS MOST AGGRESSIVE BID YET TO PUT VICTOR POSNER OUT OF BUSINESS IS SEEKING TO BAR THE ONETIME CORPORATE RAIDER FROM EVER SERVING AS AN OFFICER OR DIRECTOR OF ANY PUBLICLY TRADED COMPANY THE SEC'S CASE SCHEDULED TO BEGIN TODAY IN FEDERAL COURT IN NEW YORK IS EXPECTED TO BE ONE OF THE LAST LEGAL ACTIONS STEMMING FROM THE INSIDER TRADING SCANDAL OF THE PAST DECADE AND IT WILL FEATURE GOVERNMENT TESTIMONY BY A CENTRAL FIGURE IN THAT AFFAIR CONVICTED FORMER ARBITRAGER IVAN BOESKY IN ITS CIVIL LAWSUIT THE SEC ACCUSES MR POSNER AND HIS SON STEVEN POSNER OF ILLEGALLY SCHEMING WITH MR BOESKY AND THENJUNKBONDKING MICHAEL MILKEN TO TAKE OVER FISCHBACH CORP IN THE EARLY 1980S BUT MORE BROADLY THE SEC IS CHALLENGING THE WAY VICTOR POSNER OF MIAMI BEACH FLA HAS CONDUCTED BUSINESS OVER THE COURSE OF THREE DECADES THE DEFENDANTS HAVE DENIED ANY WRONGDOING THE POSNERS HAVE BEEN SOMETHING OF AN OBSESSION FOR GOVERNMENT ATTORNEYS WHO MAINTAIN THAT THE DEFENDANTS HAVE LOOTED PUBLIC COMPANIES FOR THEIR OWN BENEFIT THE ELDER MR POSNER ALREADY HAS BEEN ENJOINED TWICE AND THE YOUNGER MR POSNER ONCE FROM VIOLATING SECURITIES LAWS A FEDERAL JUDGE IN CLEVELAND LAST YEAR RULED THAT VICTOR POSNER HAD VIOLATED HIS FIDUCIARY DUTY TO SHAREHOLDERS AND COULD NO LONGER RUN DWG CORP A HOLDING COMPANY THAT HAD BEEN THE CENTERPIECE OF THE POSNER EMPIRE AMONG OTHER THINGS THE JUDGE NOTED THAT VICTOR POSNER HAD CHARGED 396 MEALS TO DWG IN THE COURSE OF A YEAR AND CAUSED THE COMPANY TO PAY MILLIONS OF DOLLARS IN OTHER PERSONAL EXPENSES THE POSNERS RECENTLY SOLD THEIR INTEREST IN DWG TO INVESTORS NELSON PELTZ AND PETER MAY BUT VICTOR POSNER WHO IS 75 YEARS OLD STILL CONTROLS SEVERAL OTHER PUBLIC COMPANIES IN WHICH BOTH HE AND HIS SON ARE OFFICERS AND DIRECTORS THE LARGEST OF THOSE COMPANIES IS APL CORP A MIAMI BEACH MANUFACTURER OF CABINETS AND OTHER PRODUCTS TAKING INTO CONSIDERATION THESE EARLIER CASES THE SEC HAS TAKEN THE UNUSUAL STEP OF ASKING US DISTRICT JUDGE MILTON POLLACK TO USE THIS NONJURY TRIAL TO BAR THE DEFENDANTS FROM ANY OFFICER OR DIRECTOR POSITION AT A PUBLIC COMPANY IT ALSO IS SEEKING AN ORDER REQUIRING THE POSNERS TO DISGORGE ABOUT 4 MILLION IN SALARIES INCLUDING INTEREST THAT THEY MADE AS OFFICERS OF FISCHBACH BEFORE 1990 THE SEC HAD MANAGED IN ONLY TWO TRIALS TO PERSUADE A JUDGE TO BAR A DEFENDANT FROM HOLDING OFFICER OR DIRECTOR POSITIONS BUT IN 1990 CONGRESS GAVE THE SEC EXPLICIT STATUTORY AUTHORITY TO SEEK SUCH A REMEDY AND SINCE THEN ABOUT 20 SETTLEMENTS HAVE BEEN REACHED INCLUDING THESE BANS SEC OFFICIALS SAID THE CASE AGAINST THE POSNERS IS A LEFTOVER FROM THE SPRAWLING 1988 SEC COMPLAINT THAT ACCUSED MR MILKEN AND OTHERS OF SECURITIESLAW VIOLATIONS INVOLVING A NUMBER OF COMPANIES IN THE FISCHBACH DEAL AND AN EARLIER ONE INVOLVING BURNUP & SIMS INC ALSO AT ISSUE IN THE CURRENT LAWSUIT THE SEC ALLEGES THAT THE POSNERS ARRANGED TO SECRETLY PARK OR PLACE STOCK OF THE TARGET COMPANY WITH MR BOESKY IN ORDER TO CONCEAL THEIR TRUE INTENTIONS AS POTENTIAL RAIDERS IN THE CASE OF FISCHBACH MR MILKEN THEN HEAD OF DREXEL BURNHAM LAMBERT INC'S HIGHYIELD BOND DEPARTMENT IS ALLEGED TO HAVE CONVEYED THE POSNER REQUEST TO MR BOESKY THAT HE PARK THE STOCK IN ORDER TO FACILITATE A TAKEOVER THAT WAS BEING FINANCED BY DREXEL BONDS IN THE BURNUP & SIMS DEAL ANOTHER DREXEL EMPLOYEE DON ENGEL IS ALLEGED TO HAVE CONTACTED MR BOESKY IN NEITHER INSTANCE DOES THERE APPEAR TO BE DIRECT PROOF THAT EITHER VICTOR OR STEVEN POSNER ACTUALLY MADE A REQUEST OF MR BOESKY DENNIS BLOCK THE ATTORNEY FOR THE POSNERS CALLS THE CURRENT SEC SUIT FRIVOLOUS HE ADDS HONESTLY THE CASE IS VERY WEAK VICTOR POSNER NEVER DISCUSSED ANYTHING WITH IVAN BOESKY EVER MR MILKEN EVENTUALLY SETTLED WITH THE SEC AND PLEADED GUILTY TO SIX SECURITIESRELATED FELONIES INCLUDING ONE INVOLVING FISCHBACH CRIMINAL INDICTMENTS AGAINST MR POSNER AND HIS SON NEVER WERE BROUGHT PROVING CIVIL CHARGES IS EASIER THAN MAKING A CRIMINAL CASE HOWEVER AND THE SEC'S KEY WITNESS WILL BE MR BOESKY MR MILKEN THOUGH WON'T TESTIFY MR MILKEN AGREED TO COOPERATE WITH THE GOVERNMENT AS PART OF HIS PLEA AGREEMENT BUT IT DID NOT CALL HIM AS A WITNESS THE POSNERS ON THE OTHER HAND DID SEEK HIS TESTIMONY HOWEVER BECAUSE MR MILKEN LIVES IN CALIFORNIA HE CANNOT BE COMPELLED TO COME TO NEW YORK TO TESTIFY IN A CIVIL CASE AND JUDGE POLLACK DENIED THE POSNERS' REQUEST TO VIDEOTAPE MR MILKEN'S TESTIMONY A NEW YORK STATE JUDGE RULED THAT AN ACCOUNTANT'S CONTINGENCYFEE ARRANGEMENT WAS ILLEGAL UNDER STATE LAW BUT THE JUDGE ALLOWED THE ACCOUNTANT TO KEEP THE BULK OF THE FEE BECAUSE THE CLIENT APPARENTLY WAS SATISFIED WITH THE ACCOUNTANT'S WORK JUDGE STEPHEN G CRANE OF NEW YORK COUNTY SUPREME COURT SAID PERRY WEINRAUB OF COMMACK NY ACTED AS A PUBLIC ACCOUNTANT WHEN HE ASKED FOR A FEE CONTINGENT ON HIS PERFORMANCE A LETTER FROM MR WEINRAUB TO THE CLIENT WAS WRITTEN ON LETTERHEAD STATIONERY THAT NOTED MR WEINRAUB IS A CERTIFIED PUBLIC ACCOUNTANT NEW YORK AND MOST OTHER STATES PROHIBIT CONTINGENCY FEES FOR ACCOUNTANTS EVEN THOUGH THE PROFESSION ITSELF DROPPED A BAN AGAINST SUCH FEES IN 1990 UNDER PRESSURE FROM FEDERAL REGULATORS BUT GERARD RISO A SENIOR PARTNER OF RUFFA & RISO NEW YORK WHO REPRESENTED MR WEINRAUB SAID HIS CLIENT WAS ACTING AS A PRIVATE AGENT IN A CONSULTING ROLE RATHER THAN AS AN ACCOUNTANT WHEN HE AGREED TO CHECK THE BOOKS AND RECORDS OF PERFUMER CHANEL INC CHANEL HAD SUBLEASED A STORE ON RODEO DRIVE IN BEVERLY HILLS CALIF FROM LOTHAR'S OF CALIFORNIA A CLOSELY HELD FIRM BASED IN GENEVA LOTHAR'S HAD LEASED THE PROPERTY FROM A FAMILY TRUST LOTHAR'S AT FIRST AGREED TO PAY MR WEINRAUB A BASE FEE OF 3000 AND A PORTION OF ANY RENT HE RECOVERED CHANEL'S RENT WAS BASED ON A PERCENTAGE OF ITS GROSS SALES WHICH WERE DISPUTED BY LOTHAR'S AND CHANEL AS A RESULT OF MR WEINRAUB'S CHECKING CHANEL PAID LOTHAR'S AN ADDED 302092 A JURY HAS AWARDED MORE THAN 15 MILLION TO A WOMAN WHO SUED HER DOCTORS CLAIMING THAT THEY UNNECESSARILY DELIVERED HER CHILD BY CAESAREAN SECTION THE VERDICT IS UNUSUAL LAWYERS SAY BECAUSE WHILE MALPRACTICE CASES ARE OFTEN FILED IN CASES IN WHICH A MOTHER OR CHILD IS INJURED BECAUSE DOCTORS FAILED TO DO CAESAREAN SURGERY PATIENTS RARELY SUE ON THE GROUNDS THAT A CAESAREAN WASN'T NECESSARY IN THE CASE WHICH WAS TRIED IN CAMBRIDGE MASS THE WOMAN MARY MEADOR DEVELOPED AN INTESTINAL ILLNESS WHICH SHE SAID WAS TRIGGERED BY THE CEASAREAN DELIVERY HER DOCTORS SIDNEY STAHLER AND RUBEN GHERIDIAN SAID THAT SHE HAD CONSENTED TO THE PROCEDURE DAVID GOULD A LAWYER FOR THE DOCTORS SAID A DECISION HASN'T BEEN MADE ABOUT WHETHER TO APPEAL HE SAID THE SIZE OF THE VERDICT WHICH INCLUDED INTEREST WAS SMALLER THAN IT MIGHT HAVE BEEN BECAUSE OF TESTIMONY THAT THE WOMAN WOULD HAVE DEVELOPED THE INTESTINAL CONDITION EVENTUALLY EVEN WITHOUT THE CESAREAN DELIVERY HATECRIME CASE NINE DAYS INTO JURY SELECTION A JUDGE IN TAMPA FLA SAID HE WAS ORDERING A CHANGE OF VENUE IN THE TRIAL OF TWO WHITE MEN ACCUSED OF SETTING A BLACK TOURIST ON FIRE THE ASSOCIATED PRESS REPORTED CIRCUIT JUDGE JOHN DONALD EVANS SAID THE COMBINATION OF PRETRIAL PUBLICITY HESITANCY BY JURORS TO SERVE AND OTHER FACTORS PUSHED HIM TO MOVE THE CASE OUT OF TAMPA THE JUDGE DELAYED THE TRIAL TO AUG 23 NO LOCATION WAS SET BUT HE SAID HE WAS CONSIDERING WEST PALM BEACH AND FORT MYERS AS POSSIBILITIES NOTED FORMER LOS ANGELES DISTRICT ATTORNEY IRA REINER WAS NAMED A PARTNER OF NEW YORK'S 100LAWYER PHILLIPS NIZER BENJAMIN KRIM & BALLON AND WILL PRACTICE IN ITS LOS ANGELES OFFICE CALLED PHILLIPS NIZER BENJAMIN KRIM & RILEY WHICH HAS SIX LAWYERS MR REINER 57 YEARS OLD WITHDREW LAST FALL FROM THE RACE TO KEEP HIS POST AFTER CITY PROSECUTORS LOST SOME HIGHPROFILE CASES INCLUDING THE STATE TRIAL OF THE FOUR POLICEMEN ACCUSED OF BEATING RODNEY KING LEE BERTON CONTRIBUTED TO THIS ARTICLE 9306170010 930617 CLINTON'S PROPOSAL ON SERVICE PROGRAM FOR COLLEGE CLEARS HOUSE SENATE PANELS BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON GOT A BADLY NEEDED VICTORY AS TWO CONGRESSIONAL COMMITTEES APPROVED WITHOUT SUBSTANTIAL CHANGES HIS PROPOSAL FOR A NATIONAL SERVICE PROGRAM TO HELP STUDENTS PAY FOR COLLEGE MR CLINTON'S ADVOCACY OF NATIONAL SERVICE LAST YEAR ALONG WITH HIS PROPOSALS FOR A MIDDLECLASS TAX CUT AND WELFARE REFORM WAS AT THE CORE OF HIS CAMPAIGN TO PRESENT HIMSELF TO MIDDLECLASS VOTERS AS A NEW DEMOCRAT WITH CENTRIST VIEWS BUT WHILE THE TAX CUT IS LONG DEAD AND WELFARE REFORM NOT LIKELY TO COME UP BEFORE NEXT YEAR A NATIONAL SERVICE BLUEPRINT COULD BE APPROVED BEFORE CONGRESS BEGINS ITS AUGUST RECESS GIVEN YESTERDAY'S APPROVAL BY HOUSE AND SENATE PANELS PRESIDENT CLINTON PRAISED THE COMMITTEE ACTION SAYING THAT IT SHOWED CONGRESS AT ITS BEST BUT SOME REMAIN SKEPTICAL OF THE PLAN AND MAY TAKE AIM DURING FLOOR ACTION A NUMBER OF REPUBLICANS FOR EXAMPLE SAY THAT THE COUNTRY CAN ILLAFFORD A NEW BENEFITS PROGRAM RIGHT NOW FROM THE OTHER SIDE OF THE SPECTRUM SOME CRITICS COMPLAIN THAT THE PLAN FALLS SHORT OF WHAT MR CLINTON ENVISIONED IN HIS CAMPAIGN BOOK PUTTING PEOPLE FIRST HE CALLED FOR A NATIONAL SERVICE TRUST FUND TO GUARANTEE EVERY AMERICAN WHO WANTS A COLLEGE EDUCATION THE MEANS TO OBTAIN ONE UNDER THE LEGISLATION 25000 TO 30000 YOUNG AMERICANS WOULD BE PUT TO WORK IN 1994 WITH THE NUMBER INCREASING TO 150000 IN 1997 THE WHITE HOUSE PUTS THE COST AT ABOUT 6 BILLION OVER FOUR YEARS IN THE HOUSE THE EDUCATION AND LABOR COMMITTEE APPROVED BY VOICE VOTE LEGISLATION THAT MADE ONLY MINOR MODIFICATIONS TO THE ADMINISTRATION'S PROPOSAL UNDER THE PLAN STUDENTS COULD RECEIVE 5000 A YEAR IN EDUCATIONAL BENEFITS FOR TWO YEARS IN EXCHANGE FOR WORKING IN EDUCATION ENVIRONMENTAL OR PUBLICSAFETY PROGRAMS THEY ALSO WOULD RECEIVE A LOWWAGE STIPEND HEALTH INSURANCE AND CHILDCARE ASSISTANCE IF NEEDED DURING THE SOMETIMES ACRIMINOUS SESSION DEMOCRATS BEAT BACK REPUBLICAN EFFORTS TO REQUIRE THAT THE EDUCATIONAL BENEFITS BE MEANSTESTED THAT IS AVAILABLE ONLY TO THOSE WHO CAN DEMONSTRATE FINANCIAL NEED UNDER THE CURRENT HIGHEREDUCATION LAW REP WILLIAM GOODLING R PA ARGUED THAT IT WOULD BE A SERIOUS INEQUITY TO FUND A NEW PROGRAM AT A TIME WHEN SOME MAJOR EXISTING EDUCATIONASSISTANCE PROGRAMS FACE CUTS BUT COMMITTEE CHAIRMAN WILLIAM FORD D MICH INSISTED THAT NATIONAL SERVICE SHOULDN'T BE VIEWED AS A WELFARE PROGRAM AND ADDED THAT IT WAS IMPORTANT FOR MIDDLECLASS YOUTHS TO TAKE PART THE PROGRAM HE SAID SHOULD ALLOW INTEGRATION OF PEOPLE FROM DIFFERENT BACKGROUNDS NOT PERMIT DISCRIMINATION BASED ON FINANCIAL WHEREWITHAL WHITE HOUSE OFFICIALS STRONGLY AGREED ON ANOTHER ISSUE REP SUSAN MOLINARI R NY ARGUED UNSUCESSFULLY THAT THE NUMBER OF HOURS REQUIRED TO BE IN THE PROGRAM BE CUT SHARPLY AND THE NONEDUCATIONAL ASSISTANCE BE ELIMINATED BY USING THAT MONEY INSTEAD FOR THE 5000 EDUCATIONAL GRANTS SHE ARGUED THE PROGRAM COULD SERVE 77000 PARTICIPANTS IN FISCAL 1994 THAT'S MORE THAN TRIPLE THE NUMBER FORESEEN BY THE ADMINISTRATION BUT CRITICS CONTENDED THAT ELIMINATING HEALTH INSURANCE AND CHILDCARE AID WOULD LIMIT THE PROGRAM TO THE BETTEROFF SHE ALSO WAS OVERRULED IN AN EFFORT TO ENSURE THAT CERTAIN FINANCIALAID PROGRAMS BE FUNDED AT CURRENT LEVELS BEFORE NATIONAL SERVICE COULD BEGIN ONE OF THE ANGRIEST EXCHANGES INVOLVED AN AMENDMENT PROPOSED BY REP MARGE ROUKEMA THAT WOULD HAVE REQUIRED THAT PARTICIPANTS BE SELECTED BY LOTTERY FROM A POOL OF ELIGIBLE APPLICANTS THE GOAL SAID THE NEW JERSEY REPUBLICAN WOULD BE TO PREVENT THE HANDING OUT OF JOBS AS POLITICAL PATRONAGE IT'S A DUMB AMENDMENT SAID MR FORD ALMOST SHOUTING HE SAID THE LOCAL GROUPS RUNNING THE PROGRAMS SHOULD BE ABLE TO CHOOSE THE PEOPLE THEY WANT HE LATER APOLOGIZED BUT THE AMENDMENT WAS DEFEATED THE COMMITTEE DID ACCEPT A CHANGE PROPOSED BY REP MAJOR OWENS D NY TO PLACE A FLOOR ON THE WORK STIPEND OF ABOUT 7400 A YEAR IN THE SENATE THE LABOR AND HUMAN RESOURCES COMMITTEE APPROVED A BILL 143 THAT ALSO CONTAINED ONLY MINOR CHANGES FROM THE ADMINISTRATION'S PROPOSAL SEN NANCY KASSEBAUM R KAN WHO EXPRESSED CONCERN ABOUT CREATING THE NATIONAL SERVICE PROGRAM AT A TIME WHEN OTHER TYPES OF FINANCIAL AID MAY BE CUT SAID SHE MAY OFFER ALTERNATIVE LEGISLATION ON THE SENATE FLOOR 9306170009 930617 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG ONE ADVANTAGE APPLE'S MACINTOSH MODELS HAVE LONG HAD OVER MOST IBMCOMPATIBLE PCS IS THEIR BUILTIN EASYTOUSE NETWORKING HARDWARE AND SOFTWARE BUT A NEW ADDON PRODUCT FROM A LITTLE CALIFORNIA COMPANY AIMS TO BRING THE SAME SIMPLICITY TO NETWORKING IN THE IBM WORLD ON THE MAC IT'S A PIECE OF CAKE TO SET UP A SMALL NETWORK FOR SHARING DATA FILES AND PRINTERS AND EXCHANGING ELECTRONIC MAIL YOU JUST LINK THE MACHINES WITH COMMON ORDINARY TELEPHONE CORDS USING LITTLE 20 ADAPTERS ON EACH END THAT PLUG INTO A SOCKET ON THE BACK OF EACH COMPUTER THEN WITH PERHAPS 10 MINUTES OF MOUSE CLICKING YOU SET UP NETWORKING CONTROL SOFTWARE THAT'S ALREADY BUILT INTO THE SYSTEM FILES ON REMOTE COMPUTERS THEN CAN BE DISPLAYED ON YOUR SCREEN AS IF THEY WERE YOUR OWN BY CONTRAST IT'S A ROYAL PAIN TO SET UP A BASIC NETWORK OF IBMCOMPATIBLES DESPITE SUCH GOOD PRODUCTS AS ARTISOFT'S LANTASTIC A NETWORKING KIT IN NEARLY ALL CASES YOU NEED TO INSTALL CIRCUIT BOARDS OR CARDS INSIDE EACH MACHINE THIS OFTEN REQUIRES A TEDIOUS CONFIGURATION PROCESS FOR YEARS IBMCOMPATIBLE COMPANIES FOCUSED ON SELLING LARGE COSTLY CLIENTSERVER SYSTEMS WHICH USE DEDICATED SERVER MACHINES TENDED BY STAFFS OF NETWORK ADMINISTRATORS MOST PAID SCANT ATTENTION TO PEERTOPEER NETWORKS LIKE THOSE COMMON ON THE MAC WHICH DON'T REQUIRE A MASTER COMPUTER OR STAFF AND MAINLY ARE LIMITED TO FILE SHARING PRINTER SHARING AND EMAIL MICROSOFT MADE A STAB AT THE SMALLOFFICE NETWORKING MARKET LAST YEAR WITH A PEERTOPEER VERSION OF ITS WINDOWS SOFTWARE CALLED WINDOWS FOR WORKGROUPS BUT SALES HAVE BEEN WEAK PARTLY BECAUSE SMALL BUSINESSES ARE LOATH TO OPEN UP ALL THEIR PCS AND INSTALL NETWORKING CARDS NOW MICROSOFT AND COMPAQ COMPUTER ARE WORKING ON A NEW KIND OF IBMCOMPATIBLE PC AIMED AT MATCHING THE EASE OF USE OF APPLE'S HARDWARE INCLUDING BUILTIN NETWORKING THE FIRST OF THESE PLUGANDPLAY MACHINES IS EXPECTED LATE THIS YEAR BUT A STARTUP IN BELMONT CALIF IS MAKING THINGS EASIER NOW AT LEAST IN THE AREA OF NETWORKING THE COMPANY COACTIVE COMPUTING HAS JUST INTRODUCED THE COACTIVE CONNECTOR A 149 EXTERNAL MODULE ABOUT THE SIZE OF A CIGARETTE PACK THAT MAKES IBMCOMPATIBLES AS EASY TO JOIN IN NETWORKS AS MACINTOSHES IT'S MAINLY AIMED AT LINKING IBMCOMPATIBLES TO EACH OTHER BUT IT ALSO CONNECTS THOSE MACHINES AND MACS I'VE BEEN TESTING THE COACTIVE CONNECTOR FOR SEVERAL WEEKS TRYING IT OUT ON DIFFERENT COMBINATIONS OF DESKTOP AND LAPTOP PCS AND PRINTERS AS WELL AS MIXTURES OF PCS AND MACS I FOUND THE PRODUCT A JOY TO USE IT SETS UP IN LESS THAN 10 MINUTES PER MACHINE WITHOUT EVER REQUIRING YOU TO OPEN THE MACHINE'S COVER OR FIDDLE WITH CONFIGURATION FILES WHICH CAN CAUSE BIG HEADACHES ONCE INSTALLED YOU DON'T HAVE TO BOTHER WITH IT THE ACCOMPANYING SOFTWARE WHICH COMES IN VERSIONS FOR PLAIN MSDOS AND FOR WINDOWS GUIDES YOU STEP BY STEP THROUGH THE BRIEF SETUP AND THE WELLILLUSTRATED MANUALTITLED HOW TO HOOK THIS STUFF UP IS SHORT AND CRYSTALCLEAR YOU JUST PLUG THE CONNECTOR INTO THE PARALLEL OR PRINTER PORT ON THE BACK OF YOUR PC ANY PRINTERS CONNECTED THERE DON'T HAVE TO BE DISPLACED SIMPLY PLUG THEM INTO ANOTHER PARALLEL PORT SOCKET ON THE END OF THE COACTIVE CONNECTOR THEN YOU PLUG THE CONNECTOR INTO AN ELECTRICAL OUTLET IT NEEDS POWER BECAUSE IT USES A MICROPROCESSOR TO MANAGE THE NETWORK THE MODULE HOOKS UP TO PRINTERS IN THE SAME WAY AFTER THAT IT'S JUST LIKE NETWORKING MACS YOU MERELY LINK THE COACTIVE CONNECTORS ON YOUR PCS AND PRINTERS WITH COMMON PHONE CORDS AS MANY AS 32 MACHINES CAN BE NETWORKED AND THE WHOLE NETWORK CAN STRETCH 1000 FEET THEN THE SOFTWARE SETS UP A SPECIAL DIRECTORY AN ELECTRONIC REPOSITORY FOR FILES ON EACH PC IN WHICH FILES CAN BE OPENED FROM ALL THE OTHER PCS ONLY THE FILES YOU PUT IN THIS SHARED DIRECTORY ARE OPEN TO OTHERS EVERYTHING ELSE ON YOUR MACHINE REMAINS PRIVATE EACH TIME YOUR COMPUTER STARTS UP THE COACTIVE SOFTWARE WHICH USES ONLY 65 KILOBYTES OF MEMORY AUTOMATICALLY MODIFIES YOUR PC SO IT RECOGNIZES ALL THE SHARED DIRECTORIES ON ALL THE COMPUTERS ON THE NETWORK THESE DIRECTORIES ARE GROUPED INTO A PHANTOM DISK DRIVE LABELED N THAT BEHAVES AS IF IT IS PHYSICALLY CONNECTED TO YOUR OWN PC ALL OF YOUR EXISTING PROGRAMS TREAT THIS DRIVE AS REAL SO THERE'S NOTHING NEW FOR THEM TO LEARN THE PHANTOM DRIVE AND ITS NETWORK FILES SHOW UP WHEN YOU CALL FOR A FILE LISTING IN DOS OR WHEN YOU USE THE FILE MANAGER IN WINDOWS YOU CAN COPY THESE FILES FROM THE REMOTE COMPUTERS TO YOUR OWN HARD DISK YOU CAN OPEN THEM UP IN YOUR OWN SOFTWARE PROGRAMS EVEN IF THEY'RE STILL PHYSICALLY ON ANOTHER COMPUTER AND YOU CAN PRINT THEM OUT ON YOUR OWN PRINTER YOU CAN ALSO PRINT FILES ON PRINTERS CONNECTED TO OTHER MACHINES ON THE NETWORK COACTIVE ALSO SAYS ONE EMAIL PROGRAM CC MAIL FROM LOTUS DEVELOPMENT CURRENTLY WORKS WITH ITS SYSTEM THOUGH I DIDN'T TRY IT OUT INCLUDING MACS IN THE NETWORK IS EVEN EASIER YOU CAN EITHER BUY A 29 MAC CONNECTOR FROM COACTIVE OR USE AN EXISTING MAC CONNECTOR THE MAC'S BUILTIN NETWORKING SOFTWARE SEES AN IBMCOMPATIBLE ON A COACTIVE NETWORK AS IF IT WERE ANOTHER MAC AND VICE VERSA THE COACTIVE CONNECTOR IS ONE OF THOSE RARE PRODUCTS WHOSE DESIGNERS MADE EASE OF USE AND PRACTICALITY THEIR TOP PRIORITY IF YOU USE IBMCOMPATIBLE PCS AND YOU THINK A SIMPLE NETWORK MIGHT HELP AT YOUR OFFICE THIS IS THE EASIEST WAY I KNOW TO GET ONE 9306170008 930617 ECONOMY MAY FIGURES SHOW ECONOMY SLOW TO PICK UP GROWTH IN HOUSING STARTS AT 24 SMALLER THAN FORECASTERS EXPECTED BY CHRIS FRAMPTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON NEW GOVERNMENT FIGURES FOR MAY INDICATED THE ECONOMY CONTINUED TO GROW SLOWLY WITH MANY FORECASTERS STILL LOOKING FOR IT TO PICK UP STEAM HOUSING STARTS INCREASED BY 24 IN MAY TO AN ANNUAL RATE OF 1244000 THE COMMERCE DEPARTMENT SAID THE RATE WAS 1215000 IN APRIL WHEN STARTS ROSE A REVISED 81 THE FEDERAL RESERVE SAID INDUSTRIAL PRODUCTION ROSE 02 LAST MONTH THE THIRD CONSECUTIVE INCREASE OF THAT SIZE MAY OUTPUT WAS 35 ABOVE A YEAR EARLIER THE GROWTH IN HOUSING STARTS WAS SLOWER THAN FORECASTERS HAD EXPECTED THE MAY INCREASE IS DISAPPOINTING SAID DAVID SEIDERS CHIEF ECONOMIST OF THE NATIONAL ASSOCIATION OF HOME BUILDERS WE HAD PREDICTED HIGHER GROWTH BUT NOW WILL HAVE TO LOOK FOR AND WE EXPECT TO SEE SNAPBACKS IN NEW HOME STARTS THE NUMBERS WERE HELD BACK BY SLOW GROWTH IN MULTIFAMILY UNITS STARTS OF BUILDINGS WITH FIVE OR MORE UNITS DECLINED 33 ALTHOUGH SMALLER MULTIUNIT BUILDINGS ROSE 222 THE DEPARTMENT SAID THE MULTIFAMILY MARKET CERTAINLY NEEDS A BOOST SAID DAVID LEREAH CHIEF ECONOMIST OF THE MORTGAGE BANKERS ASSOCIATION SOME ECONOMISTS SAID HIGH RENTS WERE DEPRESSING DEMAND FOR NEW APARTMENTS MR SEIDERS SUGGESTED THE CULPRIT MAY BE THE DEPLETION OF FEDERAL FUNDS INTENDED TO ENCOURAGE DEVELOPERS TO BUILD LOWINCOME HOUSING THE CLINTON ADMINISTRATION HAS PROPOSED AN EXTENSION OF THAT PROGRAM IN ITS BUDGET ONE THING THAT LEADS ECONOMISTS TO LOOK FOR IMPROVEMENT IS THE STRONG RISE IN PERMITS FOR FUTURE APARTMENT CONSTRUCTION PERMITS FOR BUILDINGS OF FIVE UNITS OR MORE ROSE 236 LAST MONTH THE DEPARTMENT SAID TOTAL PERMITS ISSUED IN MAY ROSE 12 TO AN ANNUAL RATE OF 1114000 THE INDUSTRIAL PRODUCTION REPORT ALSO DISPLAYED THE ECONOMY'S UNWILLINGNESS TO GROW QUICKLY THERE ISN'T BOOMTIME GROWTH OF COURSE BUT THERE ARE POSITIVE SIGNS SAID MAURINE ALLYN CHIEF ECONOMIST OF SCUDDER STEVENS & CLARK INC SHE NOTED THAT TOTAL OUTPUT INCREASED DESPITE A DECLINE IN AUTO PRODUCTION BUT SHE SAID SHE EXPECTS AN INCREASE IN AUTO PRODUCTION AND ADDED USUALLY THEY AUTO MAKERS ARE A GOOD INDICATOR OF WHAT EVERY OTHER SECTOR IS GOING TO DO MANUFACTURING PRODUCTION GREW 02 LAST MONTH AFTER CLIMBING 04 IN APRIL OUTPUT OF DURABLE GOODS WAS UP 01 FOLLOWING A 05 INCREASE THE MONTH BEFORE WHILE PRODUCTION OF NONDURABLE GOODS ROSE 03 THE SAME AS IN APRIL UTILITY OUTPUT FELL 03 AFTER PLUNGING 34 THE MONTH BEFORE INDUSTRY OPERATED AT 816 OF CAPACITY IN MAY THE SAME AS IN APRIL AND MARCH HERE IS A SUMMARY OF THE FEDERAL RESERVE BOARD'S REPORT ON INDUSTRIAL PRODUCTION IN MAY THE FIGURES ARE SEASONALLY ADJUSTED THE INDUSTRIAL PRODUCTION INDEX FOR MAY STOOD AT 1104 OF THE 1987 AVERAGE 9306170007 930617 INTERNATIONAL REFORM BATTLE SPLINTERS JAPAN'S RULING PARTY BY JACOB M SCHLESINGER AND MASAYOSHI KANABAYASHI STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO THE FRACTIOUS FIGHT OVER POLITICAL REFORM IS CREATING WIDE RIFTS IN THE LIBERAL DEMOCRATIC PARTY WHICH HAS RULED JAPAN FOR FOUR DECADES SEVERAL VETERAN PARTY MEMBERS JOINED THE CHORUS OF CRITICISM AGAINST THEIR LEADER PRIME MINISTER KIICHI MIYAZAWA FOR BACKING AWAY FROM HIS PLEDGE TO OVERHAUL JAPAN'S ELECTORAL SYSTEM DURING THE CURRENT SESSION OF PARLIAMENT SCHEDULED TO END SUNDAY LDP OFFICIALS PRESSURED MR MIYAZAWA TO EITHER COME UP WITH A NEW REFORM PLAN OR TO RESIGN OR DISSOLVE PARLIAMENT THE THREE LEADING OPPOSITION PARTIES PRESENTED A MOTION OF NOCONFIDENCE IN MR MIYAZAWA TO PARLIAMENT THURSDAY MORNING MR MIYAZAWA'S CRITICS IN THE RULING PARTY HUDDLED TO DECIDE HOW TO VOTE ON THE MEASURE MR MIYAZAWA WAS EXPECTED TO DISSOLVE PARLIAMENT AND CALL ELECTIONS FOR NEXT MONTH IF IT APPEARED THAT THE MOTION HAD ENOUGH SUPPORT TO PASS MR MIYAZAWA COULD STILL CARRY THE DAY FINDING SOME FACESAVING PROPOSAL BUT EVEN IF HE SURVIVES THE STORM HE WILL PRESIDE OVER A PARTY MORE DIVIDED THAN IT HAS BEEN IN YEARS THE LDP'S SELFSTYLED REFORMERS HAVE BECOME UNUSUALLY BOLD IN ATTACKING THE TOP PARTY LEADERSHIP FOR BLOCKING MEASURES AIMED AT STEMMING JAPAN'S ENDEMIC CORRUPTION AND MAKING THE RIGID POLITICAL SYSTEM MORE RESPONSIVE TO VOTERS IF POLITICAL REFORM ISN'T REALIZED THE PEOPLE WILL BE CHEATED KEIWA OKUDA A FORMER TRANSPORTATION MINISTER TOLD TELEVISION REPORTERS HE CALLED MR MIYAZAWA A LIAR AND THE HEAD OF A CHEATING LDP TSUTOMU HATA A FORMER FINANCE MINISTER AND THE HEAD OF A PROREFORM FACTION IN THE PARTY WAS QUOTED IN THE JAPANESE PRESS WEDNESDAY AS SAYING HE WOULD EITHER VOTE FOR A MOTION OF NOCONFIDENCE AGAINST MR MIYAZAWA OR ABSTAIN HE WOULDN'T SUPPORT THE EMBATTLED PRIME MINISTER KAZUO AICHI A FORMER ENVIRONMENT MINISTER SAID IN AN INTERVIEW HE WOULD VOTE AGAINST THE PRIME MINISTER THE GROWING POSSIBILITY OF POLITICAL TURMOIL IN JAPAN SPOOKED INVESTORS AND CURRENCY TRADERS THE NIKKEI STOCK AVERAGE DROPPED 14346 POINTS WEDNESDAY TO CLOSE AT 19902 THE FIRST TIME THE INDEX CLOSED BELOW 20000 IN NEARLY TWO MONTHS THE YEN ENDING A WEEKLONG SURGE PLUNGED 132 YEN IN TOKYO TRADING YESTERDAY TO CLOSE AT 10635 YEN TO THE DOLLAR BOTH THE NIKKEI INDEX AND THE YEN CONTINUED TO FALL SHARPLY IN EARLY TRADING TODAY THE POLITICAL CRISIS COMES AT AN AWKWARD TIME FOR JAPAN TOKYO WILL HOST THE ANNUAL SUMMIT OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS STARTING JULY 7 A NEW PRIME MINISTER OR ONE FACING TOUGH ELECTIONS WOULD HAVE DIFFICULTY REPRESENTING HIS NATION IF ITS POLITICAL LEADERSHIP IS IN DISARRAY JAPAN ALSO WILL HAVE TROUBLE RESPONDING TO US PRESSURE FOR MAJOR TRADE CONCESSIONS BEFORE THE SUMMIT MR AICHI THE FORMER ENVIRONMENT MINISTER ACKNOWLEDGED THAT THE TUSSLE COULD CAUSE INTERNATIONAL EMBARRASSMENT FOR JAPAN BUT SAID THIS IS SOMETHING WE HAVE TO GO THROUGH WE HAVE TO BRING OUR PROBLEMS OUT AND DEAL WITH THEM THE LDP HIT BY NUMEROUS SCANDALS OVER THE PAST FIVE YEARS HAS FAILED TO DELIVER ON REPEATED PROMISES FOR POLITICAL REFORM THE MATTER TOOK ON GREATER URGENCY THIS SPRING WHEN LDP KINGMAKER SHIN KANEMARU WAS ARRESTED FOR ALLEGEDLY EVADING TAXES ON BILLIONS OF YEN IN SECRET CAMPAIGN CONTRIBUTIONS MR MIYAZAWA TOLD A TELEVISION INTERVIEWER LESS THAN THREE WEEKS AGO THAT IF REFORM ISN'T CARRIED OUT NOW JAPAN'S DEMOCRACY WILL FALL INTO A VERY DANGEROUS SITUATION BUT THIS WEEK PARTY LEADERS TOLD MR MIYAZAWA IT WAS IMPOSSIBLE TO FIND A PROPOSAL ACCEPTABLE TO LDP MEMBERS AND OPPOSITION PARTIES THEY AND MR MIYAZAWA AGREED AGAIN TO PUT THE MATTER OFF THAT STIRRED OUTRAGE AMONG POLITICIANS AND THE PRESS MR MIYAZAWA WEDNESDAY SAID HE WOULD SUBMIT THE LDP'S ORIGINAL REFORM PLAN TO PARLIAMENT EVEN THOUGH IT HAS NO CHANCE OF PASSING THE OPPOSITIONCONTROLLED UPPER HOUSE THE JAPANESE PRESS THURSDAY MORNING SAID THE MOST LIKELY SCENARIO WAS THAT MR MIYAZAWA WOULD CALL FOR JULY ELECTIONS ANALYSTS SAID THE LDP COULD ACTUALLY PRESERVE ITS MAJORITY IN SUCH A CONTEST BECAUSE JAPAN'S ANEMIC OPPOSITION PARTIES HEADED BY THE SOCIALISTS HAVE EVEN LESS CREDIBILITY OTHERS CAUTIONED THAT DESPITE THE TURMOIL LDP LEADERS MAY BE ABLE TO PRESSURE REBELLIOUS MEMBERS INTO LINE OR TO REACH A COMPROMISE WITH OPPOSITION PARTIES 9306170006 930617 MONEYFUND YIELDS HOLD STEADY ASSETS DROP BY 537 BILLION YIELDS ON TAXABLE MONEYMARKET MUTUAL FUNDS WERE UNCHANGED IN THE LATEST WEEK WHILE INDIVIDUAL INVESTORS PULLED OUT BILLIONS OF DOLLARS IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD REMAINED AT 265 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 598 TAXABLE FUNDS FELL BY 537 BILLION TO 47489 BILLION THE NEWSLETTER REPORTED INDIVIDUAL INVESTORS WITHDREW 678 BILLION WHILE INSTITUTIONAL INVESTORS ADDED 140 BILLION AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY ONE DAY TO 61 DAYS THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 262 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD STAYED AT 261 WHILE THE AVERAGE 30DAY COMPOUND YIELD INCHED UP TO 265 FROM 264 YIELDS ON TAXFREE FUNDS FELL FOR A SECOND WEEK THE AVERAGE SEVENDAY COMPOUND YIELD DROPPED TO 186 FROM 206 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 258 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 270 FOR SOMEONE PAYING 31 IN TAXES WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT ATTRIBUTED THE DECLINING YIELDS ON TAXFREE FUNDS TO SEASONAL FACTORS ASSETS OF 323 TAXEXEMPT FUNDS WERE 10205 BILLION DOWN 3177 MILLION ACCORDING TO MONEY FUND REPORT AVERAGE MATURITY GREW BY ONE DAY TO 48 DAYS 9306170005 930617 WHO'S NEWS DELL COMPUTER HIRES HARSLEM FROM APPLE BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE SECOND TIME IN THREE MONTHS DELL COMPUTER CORP HAS HARVESTED A HIGHRANKING EXECUTIVE FROM RIVAL APPLE COMPUTER INC THE AUSTIN TEXAS PERSONAL COMPUTER MAKER SAID IT HIRED ERIC HARSLEM THE 47YEAROLD VICE PRESIDENT OF APPLE'S MACINTOSH DESKTOP DIVISION TO SERVE AS SENIOR VICE PRESIDENT OF ITS PRODUCT GROUP REPORTING DIRECTLY TO MICHAEL S DELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR HARSLEM WILL OVERSEE PRODUCT DEVELOPMENT AND PRODUCT MARKETING FOR DELL'S ENTIRE LINE OF COMPUTER PRODUCTS THE MOVE COMING SOON AFTER DELL HIRED JOHN K MEDICA 34 THE FORMER LEADER OF MACINTOSH'S POWERBOOK TEAM TO REVAMP THE COMPANY'S STRUGGLING NOTEBOOK BUSINESS APPEARS TO SUGGEST DELL HAS DECIDED TO BROADLY REWORK ITS PRODUCT STRATEGIES ANALYSTS SAID AMONG OTHER THINGS THEY SAID DELL MAY BE REALIZING THAT MARKETING AND PRICING WON'T DRIVE ITS SALES AS MUCH AS BEFORE AND THAT MORE INNOVATIVE PRODUCTS ARE NEEDED MY GUT REACTION SAYS THAT DELL SEES THAT THE MARKET IS MOVING AWAY FROM PRICE AND TOWARD INNOVATION BEYOND THE STANDARDS LONG A HALLMARK OF APPLE'S OFFERINGS SAID WALTER WINNITZKI AN ANALYST WITH DILLON READ & CO IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY DELL SHARES FELL 375 CENTS TO 19375 WHILE APPLE SHARES ROSE 25 CENTS TO 4225 MR HARSLEM SUCCEEDS GLENN HENRY WHO WILL BECOME CHIEF TECHNOLOGY OFFICER A POSITION ANALYSTS AND THE COMPANY SAY MR HENRY LOBBIED FOR IN AN EFFORT TO MOVE AWAY FROM RUNNING THE GROUP AND FOCUS INSTEAD ON TECHNOLOGICAL INNOVATION MR HENRY A 21YEAR VETERAN OF INTERNATIONAL BUSINESS MACHINES CORP HAS BEEN AT DELL SINCE 1988 HE WILL REPORT TO MR HARSLEM I ASKED FOR THIS IT WAS IN THE BEST INTEREST OF DELL BECAUSE WE NEED TO FOCUS ON TECHNOLOGY WE END UP WITH MYSELF AND ERIC AND THAT'S BETTER THAN JUST HAVING ONE GUY MR HENRY SAID SOME ANALYSTS EXPRESSED CONCERN THAT MR HARSLEM'S HIRING MAY SIGNAL FURTHER HICCUPS IN DELL'S EARNINGS TWO MONTHS AFTER MR MEDICA WAS HIRED HE SCRAPPED DELL'S NOTEBOOK PLANS LEADING TO A SPECIAL CHARGE THAT CAUSED A 49 DECLINE IN FISCAL FIRSTQUARTER EARNINGS A DELL SPOKESWOMAN SAID SUCH A REPEAT PERFORMANCE WON'T BE THE CASE AND ADDED THAT ANALYSTS' IDEAS THAT MR HARSLEM'S HIRING SOMEHOW REFLECTS A FUNDAMENTAL RETHINKING OF DELL'S PRODUCT STRATEGY ARE WRONG SHE SAID THE HIRING OF MR HARSLEM FROM APPLE REFLECTS NO PARTICULAR RAID OR REASON WE JUST FIND GOOD PEOPLE WHEREVER WE CAN 9306170004 930617 COUNTERPOINT RICHARD RIORDAN NEW DEMOCRAT OF THE GOP BY JOEL KOTKIN LOS ANGELES SLIGHTLY A YEAR AFTER RIOTS SCORCHED THIS CITY A SECOND REBELLION HAS SHAKEN LOS ANGELES IN ELECTING A NOMINAL REPUBLICAN RICHARD RIORDAN THE VAST MAJORITY OF MIDDLECLASS ANGELENOS INCLUDING NEARLY 40 OF ALL DEMOCRATS HAVE STAGED A BLOODLESS REVOLT AGAINST THE URBAN LIBERALISM COMMON IN MOST CITIES AND EPITOMIZED BY MR RIORDAN'S OPPONENT CITY COUNCILMAN MICHAEL WOO BUT CONTRARY TO THE SUGGESTIONS IN A WALL STREET JOURNAL EDITORIAL LAST THURSDAY THE WOO SWOON IN LOS ANGELES DID NOT REVEAL THE INABILITY OF NEW DEMOCRATS WHOM THE JOURNAL HAS INCREASINGLY PICTURED AS A GROUP OF HAPLESS POLITICAL VICTIMS TO GET THIS NEW REALITY IN FACT MOST NEW DEMOCRATS HERE WERE COMPLETELY TURNED OFF BY THE WOO CAMPAIGN THE BULK OF THEM INCLUDING KEY DEMOCRATIC LEADERSHIP COUNCIL FIGURES SUCH AS REP HOWARD BERMAN ABANDONED MR WOO BECAUSE HE WAS A REPRESENTATIVE OF LEFTISH IDEOLOGIES INCOMPATIBLE WITH THEIR OWN MANY OTHER NONTRADITIONAL DEMOCRATS TOTALLY BROKE RANKS AND BACKED MR RIORDAN THESE INCLUDE THE NEW MAYOR'S CAMPAIGN CHAIRMAN WILLIAM WARDLAW WHO ALSO SERVED AS BILL CLINTON'S CALIFORNIA CHAIRMAN LAST SPRING AND REMAINS AN ACTIVE DEMOCRAT SIMILARLY MR RIORDAN'S MOST INFLUENTIAL BLACK SUPPORTER FORMER MAYORAL ASPIRANT STAN SANDERS IS NOW WIDELY RUMORED TO BE GEARING UP FOR A STATEWIDE RACE AS A DEMOCRAT INDEED ACCORDING TO HIS OWN POLLSTER ARNOLD STEINBERG MR RIORDAN WON DESPITE DEEPSEATED VOTER CONCERN OVER HIS REPUBLICAN AND CONSERVATIVE CREDENTIALS MR RIORDAN'S GREATEST ASSET ON ELECTION DAY LAY IN A WIDESPREAD AND JUSTIFIED SKEPTICISM ABOUT MR WOO'S CAPACITY TO HANDLE THE JOB SO RATHER THAN A PROOF OF THE INEFFECTIVENESS OF NEW DEMOCRAT POSITIONS THE ELECTION RESULTS ACTUALLY REVEAL THE CRITICAL IMPORTANCE OF MOVING THE PARTY AWAY FROM THE LEFTISM EPITOMIZED BY MR WOO EVEN IN THE PRIMARY CANDIDATES ADOPTING MORE CLASSIC NEW DEMOCRAT POSITIONS SUCH AS COUNCILMAN JOEL WACHS DEMOCRATIC ASSEMBLYMAN RICHARD KATZ AND FORMER DEPUTY MAYOR LINDA GRIEGORECEIVED NEARLY ONETHIRD OF THE VOTE MORE THAN MR WOO AND EQUAL TO THE TOTAL SUPPORTING MR RIORDAN WITH THE NEW DEMOCRAT VOTE SPLIT IN THE PRIMARY MR WOO BENEFITED FROM BEING THE ONLY WELLKNOWN LIBERAL IN THE RACE AND THE RECIPIENT OF THE MASSIVE FINANCIAL BACKING OF CHINESE ENTREPRENEURS MOST OF WHOM ARE EITHER MODERATE DEMOCRATS OR REPUBLICANS A NONASIAN RUNNING WITH MR WOO'S LEFTWING ORIENTATION WOULD HAVE BEEN CRUSHED IN THE ASIAN COMMUNITY AS MORLEY WINOGRAD COCHAIRMAN OF THE LOS ANGELES DEMOCRATIC LEADERSHIP COUNCIL NOTES IN THE GENERAL ELECTION MR RIORDAN'S POSITIONS ON SCHOOL REFORM POLICE ISSUES ENTERPRISE ECONOMICS AND REINVENTING GOVERNMENT REFLECTED NEW DEMOCRATIC IDEOLOGY FAR MORE THAN DID MR WOO'S USING HIS REPUBLICAN BASE TO SOLIDIFY HIS SUPPORT IN THE PRIMARY MR RIORDAN CONSCIOUSLY USED THIS PLATFORM TO DEVELOP IN THE BEST CALIFORNIA PROGRESSIVE TRADITION A NONPARTISAN FUSION COALITION THAT EXTENDED TO INDEPENDENTS AND MODERATE LIBERALS AS WELL AS CONSERVATIVES DURING THE CAMPAIGN FOR EXAMPLE MR RIORDAN STRESSED NOT THE REAGANITE ANTIGOVERNMENT MANTRA BUT THE NEW DEMOCRAT MESSAGE THAT GOVERNMENT COULD BE AN IMPORTANT PARTNER IN ECONOMIC DEVELOPMENT IF IT COULD BE MADE MORE EFFICIENT SIMILARLY HE PROMISED TO BRING DIVERSITY TO THE GOVERNMENT INCLUDING NOT ONLY THE LONGIGNORED VALLEY MIDDLE CLASS BUT THE UNDERREPRESENTED LATINO COMMUNITY AND HE ESCHEWED THE VIGOROUS IMMIGRANTBASHING THAT SADLY HAS BECOME A STAPLE OF GOP RHETORIC IN SOUTHERN CALIFORNIA FOR THE DEMOCRATS THE IMPORTANT ISSUE WILL BE TO READ THE RESULTS OF THIS ELECTION CORRECTLY ALREADY LIBERALS ARE CLUCKING ABOUT MR RIORDAN'S VICTORY BEING LITTLE MORE THAN A REACTIONARY EXPRESSION OF POSTRIOT FEARS AMONG RICH WHITE PEOPLE ONE SOLUTION PROPOSED BY SOME OF THEM WOULD BE TO BROADEN THE FRANCHISE BY EXPANDING THE POTENTIAL ELECTORATE TO NONCITIZENS AMONG THE MORE SELFDELUSIONAL AND SELFDEFEATING IDEAS NOW BEING COOKED UP IN THE STEAMING KITCHENS OF THE LEFT WHAT THE LEFT SEEMS UNWILLING TO CONCEDE IS THAT MR RIORDAN APPEALED MASSIVELY TO WHAT HAVE LONG BEEN CORE DEMOCRATIC CONSTITUENCIES INCLUDING 43 OF LATINOS HALF THE JEWS AND UNION MEMBERS AND A MAJORITY OF PEOPLE EARNING BETWEEN 20000 AND 60000 ANNUALLY MR RIORDAN EVEN WON SOME MIDDLEINCOME WESTSIDE JEWISH PRECINCTS ACCORDING TO COUNCILMAN ZEV YAROSLAVSKY THAT HAD NOT VOTED REPUBLICAN SINCE BEFORE THE DEPRESSION THE REAL LESSONS THEN OF LOS ANGELES LIE NOT IN THE IRRELEVANCY OF THE NEW DEMOCRATIC PHILOSOPHY BUT IN THE IMPORTANCE OF TAKING THE PARTY AWAY FROM THOSE WHO PRACTICE WHAT MR CLINTON HIMSELF ONCE CALLED THE BRAINDEAD POLITICS OF THE TRADITIONAL PARTY ESTABLISHMENT THE PROBLEM WITH MIKE WOO WAS THAT HE CHOSE TO TAKE THE WRONG SIDE ON THE ISSUES MOST CRUCIAL TO MIDDLECLASS ANGELENOS ON SCHOOLS FOR EXAMPLE MR WOO AVOIDED SUCH NEW DEMOCRAT POSITIONS AS PUBLIC SCHOOL CHOICE AND THE POPULAR NOTION OF BREAKING UP THE HUGE DYSFUNCTIONAL LOS ANGELES SCHOOL DISTRICT INSTEAD HE REFLEXIVELY LINED UP WITH THE EDUCATION BUREAUCRACY AND THE UNIONS AGAINST MIDDLEAND WORKINGCLASS FAMILIES SIMILARLY ON ECONOMIC DEVELOPMENT MR WOO TALKED THE TALK OF REINVENTING GOVERNMENT BUT FAILED TO CONVINCE MUCH OF ANYONE THAT HE WOULD WALK THE WALK AS MAYOR INDEED MR WOO ENDORSED BY THE PUBLIC EMPLOYEE UNIONS FOUND REASONS TO EXCUSE HIMSELF FROM THE COUNCIL CHAMBER WHENEVER REAL REFORM OF THE STULTIFYING REGULATORY BUREAUCRACY CAME UP FOR A VOTE WITHOUT CHALLENGING THESE OSSIFIED STRUCTURES MOST ANGELENOS REALIZE BUSINESS WILL CONTINUE TREATING OUR CITY AS AN ECONOMIC CHERNOBYL LAST ON THE RACIALLY CHARGED ISSUE OF CRIME MR WOO SIMPLY HAD NO CREDIBILITY ALTHOUGH HE GAINED ACCOLADES FOR BEING THE FIRST ON THE COUNCIL TO PUBLICLY URGE THE DEPARTURE OF THE DIVISIVE DARRYL GATES HE SANCTIONED POLICIES BEFORE THE RIOTS THAT SAW THE GRADUAL EROSION OF THE POLICE FORCE ITSELF HIS CODDLING OF THOSE WHO CONDONED THE RIOTING HE EVEN CALLED IT AN UPRISING PROPERLY DISGUSTED MANY MR WOO'S DEVOTION TO DYSFUNCTIONAL IDEAS ULTIMATELY TURNED OFF NOT ONLY REPUBLICANS AND CONSERVATIVES BUT NEARLY TWOTHIRDS OF THE ANGELENOS WHO JUST EIGHT MONTHS AGO HAD BACKED BILL CLINTON MOST NEW DEMOCRATS I KNOW UNDERSTAND THIS ONLY TOO WELL FOR THEM THE LESSONS OF LOS ANGELES HAVE JUST CONFIRMED THEIR BELIEF THAT ONLY A NEW KIND OF PROGRESSIVE POLITICS TRANSCENDING THE DOGMAS OF BOTH THE LEFT AND RIGHT CAN BRING OUR CITIES BACK FROM THE TWILIGHT OF DECLINE MR KOTKIN IS A FELLOW WITH THE CENTER FOR THE NEW WEST AND BUSINESS TREND ANALYST FOR FOX TELEVISION IN LOS ANGELES 9306170003 930617 MARKETING & MEDIA ADVERTISING FOR 2 REVEALING EUROPEANS ADS OVEREXPOSURE CAN HAVE BENEFITS BY LISA BANNON AND MARGARET STUDER NUDITY STILL SHOCKS BUT TWO REVEALING EUROPEAN AD CAMPAIGNS DEMONSTRATE THAT BEYOND CAPTURING ATTENTION BARE BODIES CAN BE GOOD FOR THE BOTTOM LINE EVEN THE USUALLY MORE LIBERAL EUROPEANS ARE BLUSHING AT NEW ADVERTISING EFFORTS FROM BENETTON GROUP SPA AND SWISSAIR SWISSAIR HAS FOUND AN ODD MASCOT IN AN ANONYMOUS NAKED MAN BENETTON ON THE OTHER HAND IS STAGING YET ANOTHER PUBLICITY PLAY WITH AN AD THAT MIXES NAKED ADULTS WITH NAKED CHILDREN THOUGH NEITHER AD WILL LIKELY BE USED IN THE US BENNETTON ADS ARE GENERALLY ALREADY WELL KNOWN WORLDWIDE FOR THEIR SHOCK VALUE THE ITALIAN CLOTHING GIANT HAS BUILT ITS HUGELY SUCCESSFUL COMMUNICATIONS CAMPAIGN ON PUSHING THE LIMITS OF TASTE IN ADS FROM BENETTON CREATIVE DIRECTOR OLIVIERO TOSCANI BUT LAST WEEK'S AD FEATURING 56 CLOSEUP PHOTOS OF MALE AND FEMALE GENITALIA OF BLACKS AND WHITES ADULTS AND CHILDREN HAS IGNITED CRITICISM AND STIRRED UP INDUSTRY DEBATE ABOUT THE DIFFERENCE BETWEEN ADVERTISING AND PORNOGRAPHY FOR BENETTON THIS IS OF COURSE THE AIM PERHAPS IT WAS TOO FOR SWISSAIR SWITZERLAND'S NATIONAL AIRLINE WHICH CALLS ITS NUDE MAN CAMPAIGN THE MOST SUCCESSFUL AD CAMPAIGN IN ITS HISTORY SWISSAIR LAUNCHED ITS NEW BUSINESS CLASS APRIL 1 WITH A SEVENWEEK TEASER CAMPAIGN THAT SHOWED A NAKED CAREFREE MAN FLYING THROUGH THE SKIES THE FIRST ADS SHOWED ONLY HIS LEGS TO BE FOLLOWED AT INTERVALS BY OTHER PARTS OF HIS BODY UNTIL THE WHOLE MAN APPEARED IN THE LAST ADS THE MAN'S DERRIERE WAS SHOWN AND SO WERE HIS HAIRY LEGS BUT THERE WEREN'T ANY FRONTAL GLIMPSES THE CAMPAIGN RAN IN MAGAZINES IN EUROPE NORTH AFRICA AND TURKEY AND ON TELEVISION IN THE UNITED KINGDOM AND IN EUROPEAN NEWSPAPERS THE RESPONSE WAS INCREDIBLE SAID KONRAD KORSUNSKY SWISSAIR ADVERTISING MANAGER HE CLAIMS THE CAMPAIGN RESULTED IN SOLIDLY BOOKED SEATS EVEN THOUGH CAPACITY IN BUSINESS CLASS WAS INCREASED BY 30 CRITICS DESCRIBED THE SWISSAIR ADS AS PORNOGRAPHIC SEXIST AND UNWORTHY OF THE CARRIER SAID HERMANN STRITTMATTER OF GRAF BERTEL BUCZEK STRITTMATTER THE AGENCY THAT CREATED THE CAMPAIGN BUT WE EXPECTED 25000 UNFAVORABLE RESPONSES AND ONLY GOT 25 NEGATIVE LETTERS SOME OF WHICH MAY HAVE BEEN COORDINATED HE SAID THE ADS ALSO RAN IN MAGAZINES IN ISLAMIC COUNTRIES WITH NO COMPLAINTS RECEIVED HE SAID THE CAMPAIGN IS A RARE DEPARTURE FROM TRADITIONAL AIRLINE ADVERTISING WHICH TENDS TO SHOW SMILING HOSTESSES SERVING HAPPY CUSTOMERS TRAYS OF FOOD SWISSAIR SAYS IT LIKES TO SEE THE MASCOT NOT AS A MAN BUT AS A HUMAN BEING WE CREATED SOMETHING UNCONVENTIONAL AND UNIQUE SAYS MR KORSUNSKY WE CREATED A RENAISSANCE PERSON NOT ONLY A MAN FLYING TOTALLY UNENCUMBERED WITHOUT HASSLE WITH FREEDOM TO MOVE PASSENGERS UNDERSTOOD THE MESSAGE WE WILL BE DOING THIS SORT OF ADVERTISING AGAIN IN REACTIONS TO THE BENETTON AD HOWEVER MR TOSCANI SEES NOTHING LESS THAN A DEBATE BETWEEN ADVERTISING AND ART THE AD IN FACT ORIGINATED AS A SUBMISSION TO THE BIENNALE ART EXHIBITION IN VENICE FOR ITS AVANT GARDE SECTION THE WORK WAS CONCEIVED AS THE MOST ANONYMOUS PORTRAIT OF SOCIETY WE CAN GET A SPOKESWOMAN FOR BENETTON EXPLAINS MR TOSCANI WANTED TO EXPLORE THE LIMITS OF ART AND ADVERTISINGWHERE ONE BEGINS AND THE OTHER ENDS AND HOW TOLERANCE SHIFTS FROM ONE REALM TO THE NEXT MR TOSCANI'S ARGUMENT IS THAT IN THE ART WORLD DEBATABLY OFFENSIVE IMAGES SUCH AS THOSE BY PHOTOGRAPHER ROBERT MAPPLETHORPE ARE ACCEPTED WHILE IN OTHER REALMS SUCH AS ADVERTISING THEY ARE NOT THE BENETTON SPOKESWOMAN SAID ANYWAY THERE ARE A LOT WORSE THINGS ON NEWSSTANDS SHE ADDS BENETTON EXPLAINS THAT MR TOSCANI'S CHILDREN WERE USED FOR THE AD SO AS NOT TO PROMPT ALLEGATIONS OF EXPLOITATION AWARE THAT THE AD WOULD INCITE SCANDAL AND POTENTIAL LEGAL ACTION IN THE US AND THE UK BENETTON PROPOSED IT ONLY TO MAGAZINES AND NEWSPAPERS IN ITALY AND FRANCE THE ITALIAN MEDIA REFUSED THE IMAGE IN FRANCE AMONG THE ONLY PLACES IT RAN WAS IN THE DAILY LIBERATION BENETTON SAYS IT HAS NO PLANS TO RUN THE AD AGAIN BENETTON'S ADVERTISING TACTICS HAVE PROVOKED PROTESTS BEFORE THE COMPANY HAS SEEN FIT TO FEATURE IN ITS ADS SUCH IMAGES AS A BLACK MAN'S HAND HANDCUFFED TO A WHITE MAN'S AFRICAN TRIBESMEN CARRYING WHAT APPEARED TO BE HUMAN BONES AND AN AIDS PATIENT AND HIS FAMILY MOMENTS BEFORE HIS DEATH SOME US MEDIA REJECTED THOSE ADS AND CRITICS ACCUSED BENETTON OF EXPLOITING SENSITIVE SOCIAL ISSUES TO SELL SWEATERS THE DEBATE ON ART VS ADVERTISING IS LOST ON FRANCE'S BUREAU DE VERIFICATION DE LA PUBLICITE A SELFREGULATING ADVERTISING BODY WHICH IS THREATENING TO SUE BENETTON FOR VIOLATING RULES OF DECENCY THE ARGUMENT IS MORE LIKE DECENCY VS PERVERSITY SAYS PIERRE CONSTANT BVP'S ATTORNEY ADVERTISING VS ART OR WHATEVER BENETTON ALWAYS HAS AN EXPLANATION NOT JUST ONE EXPLANATION BUT 20 OF THEM THAT'S NOT THE POINT MR CONSTANT SAYS THE POINT IS THEY'VE BROKEN THE RULES BUT MAYBE BENETTON WILL GET THE LAST LAUGH YET AGAIN FROM MY POINT OF VIEW IT'S A LITTLE OBSCENE SAYS MARCOS GOLFARI MANAGING DIRECTOR OF J WALTER THOMPSON IN ITALY BUT THEY HAVE A SUPERB VISION OF COMMUNICATION SURE THEY'VE MADE SOME MISTAKES AND THIS IS PROBABLY ONE OF THEM BUT THE REACTION THEY RECEIVE MULTIPLIES THE ADVERTISING BY HUNDREDS AND BY THOUSANDS HE ADDS THE POINT IS NOT NEGATIVE PUBLICITY OR POSITIVE PUBLICITY BUT PUBLICITY CHINESE ACCOUNT SAATCHI & SAATCHI CO'S CHINESE OFFICE WON THE ESTIMATED 4 MILLION ACCOUNT OF XIANJANSSEN PHARMACEUTICAL LTD OF CHINA BESTING FOUR OTHER AGENCIES IN THE REGION A SAATCHI SPOKESWOMAN SAID THE ACCOUNT INCLUDES BRANDS SUCH AS IMODIUM DAKTARIN AND HISMANAL RINEY HAL RINEY & PARTNERS DISMISSED 20 EMPLOYEES OR ABOUT 6 OF ITS WORK FORCE IN A COSTCUTTING MOVE SAID TONY HOUGHTON PRESIDENT OF THE AGENCY THE CUTBACKS WHICH EXTENDED TO THE SENIOR VICE PRESIDENT LEVEL WERE MADE IN THE SHOP'S SAN FRANCISCO NEW YORK AND CHICAGO OFFICES MR HOUGHTON SAID THE AGENCY WITH ESTIMATED BILLINGS OF 350 MILLION HAD PUT OFF MAKING THE CUTS UNTIL AFTER THE BIG PITCH FOR SEARS ROEBUCK'S APPAREL ACCOUNT WHICH WENT TO YOUNG & RUBICAM 9306170002 930617 CANADA HOLDS BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT REPORTED AN AVERAGE YIELD OF 7428 AT AN AUCTION OF 170 BILLION CANADIAN DOLLARS US133 BILLION OF 75 BONDS DUE DEC 1 2003 THE PRICE EQUIVALENT OF THE AVERAGE YIELD WAS 100506 THE PROCEEDS FROM THE AUCTION WILL BE USED TO REDEEM IN PART C207 BILLION OF GOVERNMENT BONDS MATURING JULY 1 9306170001 930617 WHAT'S NEWS BUSINESS AND FINANCE SENATE DEMOCRATIC TAX WRITERS REACHED A TENTATIVE DEFICITREDUCTION AGREEMENT CALLING FOR A 43CENT RISE IN FUEL TAXES AND A 10 SURTAX ON CAPITALGAINS INCOME FOR THE WEALTHY THAT WILL MAKE THE PROPOSAL A HARD SELL WITH CONGRESS AND CLINTON THE COMPROMISE AMONG THE 11 FINANCE PANEL MEMBERS WOULD KILL OR SCALE BACK SEVERAL BUSINESS TAX INCENTIVES THAT WERE CENTRAL TO CLINTON'S ECONOMIC STIMULUS PLAN AND WERE CLEARED BY THE HOUSE PRICE CO AND COSTCO WHOLESALE AGREED TO COMBINE INTO A 195STORE GIANT THAT WILL RIVAL WALMART'S SAM'S WAREHOUSE CLUB FOR DOMINANCE IN THE 40 BILLIONAYEAR INDUSTRY PRICE'S STOCK SOARED 625 OR 19 TO 3850 COSTCO'S CLIMBED 2 OR 12 TO 19 DIAL AND BAYER'S MILES ARE BEING INVESTIGATED BY THE JUSTICE DEPARTMENT OVER ALLEGED PRICEFIXING OF BRILLO AND SOS SOAP PADS AMID A FEDERAL GRAND JURY PROBE INTO THE ENTIRE HOUSEHOLD CLEANING PRODUCTS INDUSTRY WHITE HOUSE OFFICIALS RECOMMENDED THAT CLINTON NAME WILLIAM GOULD AN ADVOCATE OF WORKERMANAGEMENT TEAMS AND OF MAKING IT EASIER FOR UNIONS TO ORGANIZE TO HEAD THE NATIONAL LABOR RELATIONS BOARD PEPSI MOUNTED A MASSIVE PUBLICRELATIONS OFFENSIVE AGAINST WIDESPREAD REPORTS OF TAMPERING WITH ITS SOFT DRINKS AFTER SOME CRITICS SAID THE COMPANY WAS TOO SLOW IN RESPONDING MEANTIME THE FDA SAID IT CAN'T FIND A CONNECTION AMONG THE GROWING NUMBER OF REPORTS OF SYRINGES IN CANS HOUSING STARTS CLIMBED 24 AND INDUSTRIAL PRODUCTION ROSE 02 IN MAY TWO SIGNS THAT THE ECONOMY CONTINUED TO GROW SLOWLY LAST MONTH BUT MANY FORECASTERS SAID THEY ARE STILL LOOKING FOR IT TO PICK UP STEAM SMALL COMPANIES ARE INDIRECTLY CHARGING MORE BY CUTTING DISCOUNTS OR NARROWING THEIR SCOPE INSTEAD OF RAISING PRICES AS SOME BIG FIRMS HAVE THE DOW INDUSTRIALS GAINED 1965 POINTS TO 351165 BOOSTED BY A LATE WAVE OF COMPUTERGUIDED BUYING THE DOLLAR SURGED AND BOND PRICES ROSE DUPONT OFFERED TO PAY FOR TESTS OF ITS BENLATE FUNGICIDE AND TO PAY FOR ANY CROP DAMAGE THE TESTS FIND IT CAUSED AS LONG AS GROWERS AGREE TO DROP CLAIMS IF THE TESTS ARE NEGATIVE MESA REACHED AN ACCORD WITH NOTEHOLDERS TO DEFER 150 MILLION OF INTEREST PAYMENTS FOR MORE THAN TWO YEARS GOLDMAN SACHS WAS ORDERED TO PAY 432000 BY BRITAIN FOR FINANCIALREPORTING BREACHES DISCOVERED IN A PROBE OF TRADES IN MAXWELL COMMUNICATION HEWLETTPACKARD'S STOCK FELL 3375 OR 39 TO 83625 AFTER ITS CHIEF GAVE A CAUTIONARY FORECAST OF THE COMPUTER COMPANY'S PROSPECTS THE SEC WILL SEEK TO BAR FORMER CORPORATE RAIDER VICTOR POSNER FROM EVER SERVING AS AN OFFICER OR DIRECTOR OF A PUBLIC FIRM IN A TRIAL STEMMING FROM THE 1980S INSIDER TRADING SCANDALS MAZDA SAID IT DEVELOPED A CATALYTIC CONVERTER THAT FURTHER BOOSTS FUEL ECONOMY AND CUTS POLLUTANTS A POTENTIALLY BIG ADVANCE IN CAR TECHNOLOGY STILL THE CONVERTER DOESN'T MEET CALIFORNIA'S STRICT EMISSIONS LAWS TOKYO STOCKS RETREATED AGAIN WEDNESDAY AS SENTIMENT WAS DEPRESSED BY GROWING UNCERTAINTY ABOUT JAPANESE POLITICAL DEVELOPMENTS THE NIKKEI INDEX DROPPED 14346 POINTS TO 1990242 ITS FIRST FINISH BELOW 20000 SINCE LATE APRIL LONDON SHARES ROSE PETROLEUM FUTURES REBOUNDED ON A COMBINATION OF A REPORT OF LOWER US CRUDE OIL SUPPLIES OPECRELATED NEWS AND TECHNICAL FACTORS JULY CRUDE ROSE 26 CENTS A BARREL TO 1884 BONDS LEHMAN BROTHERS TREASURY INDEX 518331 UP 494 COMMODITIES OIL 1884 A BARREL UP 26 CENTS DOW JONES FUTURES INDEX 12008 OFF 075 SPOT INDEX 11952 OFF 031 DOLLAR 10645 YEN UP 070 16570 MARKS UP 00115 9306170048 930525 AL GORE LEADS A PURGE BY HOLMAN JENKINS JR AS THE DEPARTMENT OF ENERGY'S TOP SCIENTIST WILLIAM HAPPER JR WAS POPULAR ON CAPITOL HILL AND WELL REGARDED AMONG HIS PEERS SENATE DEMOCRATS EVEN URGED THE CLINTON FOLKS TO KEEP HIM ON BUT THE BUSH APPOINTEE GOT THE AX ANYWAY IN THE WORDS OF A TOP DEMOCRATIC STAFFER MR HAPPER IS PHILOSOPHICALLY OUT OF TUNE WITH THE NEW ADMINISTRATION TRANSLATION HE DOESN'T SHARE VICE PRESIDENT AL GORE'S BELIEF IN AN IMPENDING ENVIRONMENTAL CATACLYSM NOBODY IN POLITICS HAS A BIGGER INVESTMENT IN ECOLOGICAL PESSIMISM THAN MR GORE IT WAS THE AVOWED BASIS OF HIS PRESIDENTIAL BID THE THEME OF HIS BESTSELLING MANIFESTO EARTH IN THE BALANCE HE MAY COME ACROSS AS A SODDEN LUMP ON TELEVISION BUT YOU DON'T GET TO THE BIG LEAGUES WITHOUT PLAYING HARDBALL EVERY ADMINISTRATION HAS THE RIGHT TO PICK ITS OWN APPOINTMENTS AND MR GORE HAS GONE TO TOWN CAROL BROWNER AT THE ENVIRONMENTAL PROTECTION AGENCY HELPED WRITE HIS BOOK THE GREEN SPOT ON THE NATIONAL SECURITY COUNCIL HAS GONE TO EILEEN CLAUSSEN EPA'S FORMER TOP AIRQUALITY GURU BOB WATSON WAS NASA'S CHIEF OF OZONE HYSTERICS NOW HE'S BEEN PLUCKED OUT FOR A JOB IN THE WHITE HOUSE THE POLICY RESULTS ARE ALREADY SHOWING UP MR GORE AND HIS CROWD ARE CRUSADING FOR LIMITS ON GREENHOUSE GASES OVER THE OBJECTIONS OF GROWNUPS AT TREASURY AND DOE YOU CAN'T MAKE SOUND ENVIRONMENTAL POLICY WITHOUT SOUND SCIENCE WHICH MAKES MR GORE'S INTOLERANCE OF SCIENTIFIC HETERODOXY TROUBLING MR HAPPER IS AGNOSTIC ON THE INNER WORKINGS OF HIS DISMISSAL AS DOE'S DIRECTOR OF RESEARCH BUT HE'S BEEN IMPOLITIC ABOUT MR GORE'S PET CAUSES ESPECIALLY GLOBAL WARMING AND THE DREADED OZONE HOLE HE SAYS THAT WHILE GLOBAL WARMING MAKES AN INTERESTING HYPOTHESIS I DON'T SEE THE DATA THAT SAY IT'S THE END OF THE WORLD LATELY HE'S BEEN STICKING STUDIES UNDER CONGRESSIONAL NOSES THAT SHOW A SLIGHT DECLINE IN THE ULTRAVIOLET RADIATION HITTING THE EARTH'S SURFACE THE OPPOSITE OF WHAT THE OZONE ALARMISTS PREDICT AND HE MAY HAVE ANNOYED GORE STAFFERS IN A RECENT MEETING BY QUESTIONING WHETHER SPY SATELLITES REALLY HAVE A USEFUL ROLE TO PLAY IN ECOLOGICAL MONITORING WHILE THE CLINTON ADMINISTRATION IS SWINGING ONE WAY SCIENTIFIC OPINION IS SWINGING THE OTHER THERE HAS BEEN A GREAT SOBERING UP SINCE THE CLIMATE HYSTERIA OF THE LATE 1980S MANY SCIENTISTS NOW REALIZE THAT THEY WERE TAKEN IN BY MEDIA HYPE AND COMPUTER SIMULATIONS WHOSE DEFICIENCIES THEY DIDN'T REALLY UNDERSTAND WE CAN LOSE OUR OBJECTIVITY AS EASILY AS ANYBODY ELSE SAYS NASA'S JOHN CHRISTY THE NOWFADING OUTBREAK OF CLIMATIC DOOMSTERISM JUST SHOWS THAT NOT EVEN SCIENTISTS ARE IMMUNE TO THE SUGGESTIVE POWER OF THE MEDIA DRUMBEAT AND MR GORE HAS BEEN AN ADEPT DRUMMER FOUR YEARS AGO HE DECLARED THAT THERE IS NO LONGER ANY DISPUTE WORTHY OF RECOGNITION ABOUT THE PLANET'S IMMINENT DESTRUCTION AND CALLED ON THE COUNTRY TO ASSUME MINDBOGGLING COSTS TO WARD OFF THE APOCALYPSE IN A SERIES OF ROUNDTABLES ENDING LAST YEAR HE USED HIS CHAIRMANSHIP OF A KEY SENATE SUBCOMMITTEE TO INTIMIDATE SKEPTICAL RESEARCHERS AND PROMOTE A PHONY IMAGE OF SCIENTIFIC UNANIMITY BEHIND HIS SCARY TALK THE RESEARCH COMMUNITY STILL BUZZES OVER HIS FLAYING OF SHERWOOD IDSO AN AGRICULTURE DEPARTMENT RESEARCH PHYSICIST WHO ARGUES THAT RISING LEVELS OF CARBON DIOXIDE THE MAIN GREENHOUSE GAS WOULD SPUR EARTH'S VEGETATION TO GREATER FEATS OF GROWTH AND REPRODUCTION THE PLANET WOULD BECOME GREENER AND REABSORB THE CARBON DIOXIDE THAT MIGHT OTHERWISE CAUSE GLOBAL WARMING MR IDSO IS REGARDED AS A BIT OF A ZEALOT BY SOME FELLOW SCIENTISTS BUT HE HAS WRITTEN HUNDREDS OF PEERREVIEWED PAPERS AND NOBODY QUESTIONS HIS METHODOLOGY TWO YEARS AGO HE WAS DRAGGED BEFORE MR GORE'S SUBCOMMITTEE AND ACCUSED IN EFFECT OF BEING A SCIENTIFIC SHILL FOR EARTHRAPING COAL COMPANIES A GORE STAFFER TOLD ME THAT THE HEARING WAS GOING TO BE AN EXPLORATION OF VIEWS' SAYS ANOTHER SCIENTIST WHO TESTIFIED THAT DAY BUT ACTUALLY THE WHOLE PURPOSE OF THE HEARING AS FAR AS I COULD SEE WAS TO HAMMER IDSO ADDS A CAREER SCIENTIST FROM DOE WHO WAS ALSO PRESENT IT WAS A SETUP MR IDSO GOT THE MESSAGE SAYS HIS FELLOW RESEARCHER ROBERT BALLING OF THE OFFICE OF CLIMATOLOGY AT ARIZONA STATE UNIVERSITY HE CAME BACK AND SAID I'M GOING TO COOL IT' ON PURSUING CONTROVERSIAL RESEARCH OTHERS TOOK HOME THE SAME LESSON IT SURE AS HELL HAD A CHILLING EFFECT ON ME SAYS ONE SCIENTIST I WOULD BE VERY RELUCTANT TO CROSS GORE RICHARD LINDZEN AN MIT METEOROLOGIST AND A SCATHING CRITIC OF THE COMPUTER MODELS THAT PREDICT CLIMATIC DISASTER WAS ANOTHER TARGET IN ONE HEARING MR LINDZEN WITHDREW ONE OF SEVERAL TECHNICAL OBJECTIONS TO THE MODELS MR GORE INSISTED ON THE RECORD THAT MR LINDZEN HAD RECANTED HIS OPPOSITION TO GLOBAL WARMING THEN FIRED OFF THE UNPUBLISHED TRANSCRIPT TO COLUMNIST TOM WICKER WHO REPEATED THE CANARD IN THE NEW YORK TIMES MR GORE HAS HAD AN EASY TIME RECRUITING PLAYMATES FOR THESE AGITPROP GAMES FROM THE SCIENTIFIC COMMUNITY NOTABLY AT NASA AN AGENCY FOREVER IN SEARCH OF FUNDING AND A MISSION IT WAS NASA'S JAMES HANSEN WHO SHOWED UP BEFORE MR GORE'S SUBCOMMITTEE WITH A TRUMPEDUP STORY ABOUT HOW THE BUSH WHITE HOUSE HAD TRIED TO CENSOR SCIENTIFIC TESTIMONY IT WAS MR HANSEN WHO DECLARED IN THE HOT SUMMER OF 1988 THAT MR GORE'S GREENHOUSE HAD ARRIVED AND JUST LAST YEAR NASA PRODUCED A DIRE NEW OZONE WARNING PROMPTING MR GORE TO MAKE HIS FAMOUS GRANDSTAND PLAY ABOUT AN OZONE HOLE OVER KENNEBUNKPORT THE STUDY HAD BEEN RUSHED OUT WITHOUT PROPER VETTING AND THE PREDICTED HOLE NEVER APPEARED MR GORE MAY GENUINELY BELIEVE THE WORLD IS COMING TO AN END BUT HIS RESORT TO SHOW TRIALS AND OTHER PROPAGANDA STUNTS REFLECTS A LONG PATTERN OF TACTICAL CYNICISM WHEN THE REAGAN FOLKS WERE PROPOSING TO CHARGE MARKET PRICES FOR TENNESSEE VALLEY AUTHORITY ELECTRICITY MR GORE INVITED WHITE HOUSE ECONOMIST BILL NISKANEN UP FOR A PRIVATE CHAT THAT TURNED OUT TO BE AN IMPROMPTU HEARING IN FRONT OF TV CREWS FROM COMMUNITIES AROUND THE COUNTRY LATER MR GORE HELPED PASS A LAW MAKING IT ILLEGAL FOR FEDERAL EMPLOYEES EVEN TO DISCUSS MARKET PRICING WHEN IT COMES TO ENVIRONMENTAL MATTERS SHUTTING OUT CONTENDING VOICES IS RAISED TO HIGH PRINCIPLE MR GORE WHO IS BESOTTED WITH METAPHORS SEES AN ECOLOGICAL HOLOCAUST COMING AND IMPLIES THAT THE MEDIA OUGHT TO PLAY DOWN THE SCIENTIFIC UNCERTAINTIES LEST THEY UNDERMINE THE EFFORT TO BUILD A SOLID BASE OF SUPPORT FOR THE DIFFICULT ACTIONS WE MUST SOON TAKE HE TOLD THE ATLANTA CONSTITUTION LAST YEAR THAT ONLY A FEW ODD SCIENTISTS DOUBT THAT AN ENVIRONMENTAL CRISIS IS AT HAND IN FACT PRETTY NEARLY THE OPPOSITE IS TRUE EVEN MICHAEL OPPENHEIMER OF THE FREQUENTLY ALARMIST ENVIRONMENTAL DEFENSE FUND CONCEDES THAT THERE'S NO OZONE CATASTROPHE IN THE OFFING AND AS CLIMATOLOGISTS BEGIN GAZING UP FROM THEIR COMPUTER MODELS AT THE REAL WORLD GLOBAL WARMING LOOKS LIKE A FLASH IN THE PAN TOO IT'S WORTH REMEMBERING THAT AL GORE WASN'T INTERESTED IN LETTING US EVEN GET TO THIS MORE REASONED ASSESSMENT THAT HE HAD ALREADY MOVED ON AND WAS SHRILLY DEMANDING THAT SOCIETY BE TURNED UPSIDEDOWN OVER HYPOTHETICAL DISASTER SCENARIOS NOW THIS SAME AL GORE IS A HEARTBEAT FROM THE OVAL OFFICE MR JENKINS IS A WRITER ON THE JOURNAL'S EDITORIAL PAGE SEE RELATED LETTERS LETTERS TO THE EDITOR BAD CLIMATE IN OZONE DEBATE WSJ JUNE 17 1993 9305250088 YY93 MM06 9306170093 930407 TELESAT MOBILE SEEKS PROTECTION FROM CREDITORS BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA TELESAT MOBILE INC A FINANCIALLY TROUBLED TELECOMMUNICATIONS CONCERN SOUGHT PROTECTION FROM CREDITORS PENDING A POSSIBLE REORGANIZATION THE COMPANY REPORTED DEBTS OF ABOUT 140 MILLION CANADIAN DOLLARS US111 MILLION AND SAID IT HASN'T BEEN ABLE TO SECURE ADDITIONAL FUNDING TO MEET THE RISING COSTS OF BUILDING A MOBILE SATELLITE COMMUNICATIONS NETWORK TELESAT MOBILE IS OWNED 80 BY TELESAT CANADA WHICH OPERATES CANADA'S DOMESTIC SATELLITE SYSTEM AND 20 BY ITOCHU CORP A JAPANESE TRADING COMPANY TELESAT CANADA IS MOSTLY OWNED BY CANADA'S MAJOR TELEPHONE COMPANIES TELESAT MOBILE'S SYSTEM HAS BEEN DEVELOPED IN TANDEM WITH THAT OF A SIMILAR US SERVICE PROVIDER AMERICAN MOBILE SATELLITE CORP WASHINGTON DC BOTH COMPANIES HAD ANNOUNCED PLANS TO LAUNCH SATELLITES NEXT YEAR TO PROVIDE VOICE DATA AND OTHER COMMUNICATIONS SERVICES TO VARIOUS POTENTIAL CUSTOMERS INCLUDING AIRPLANES SHIPS AND TRUCKS AN AMERICAN MOBILE SPOKESMAN SAID THAT COMPANY IS IN GOOD FINANCIAL SHAPE AND CONTINUES TO BE ON SCHEDULE FOR THE 1994 LAUNCH OF ITS SATELLITE SYSTEM AMERICAN MOBILE IS OWNED 32 BY MCCAW CELLULAR COMMUNICATIONS INC ITS OTHER PARTNERS INCLUDE HUGHES COMMUNICATIONS INC A UNIT OF GENERAL MOTORS CORP WITH A 29 INTEREST AND MTEL CORP JACKSON MISS ALSO WITH A 29 STAKE THE REMAINING 10 IS HELD BY OTHER PARTIES TELESAT MOBILE FILED WITH THE FEDERAL GOVERNMENT'S OFFICIAL RECEIVER A NOTICE OF INTENTION TO MAKE A PROPOSAL TO ITS CREDITORS SUCH ACTION PROVIDES A DEBTOR WITH PROTECTION FROM ITS CREDITORS WHILE IT PURSUES A REORGANIZATION THE COMPANY'S BIGGEST CREDITOR IS TELESAT CANADA WHICH IS OWED C35 MILLION TELESAT CANADA HAS TOLD TELESAT MOBILE IT WON'T BE PROVIDING IT WITH FURTHER FUNDING TELSAT MOBILE'S SECONDLARGEST CREDITOR IS THE FRENCH SPACE CONCERN ARIANESPACE WHICH HAS A CONTRACT TO LAUNCH TELESAT MOBILE'S SATELLITE NEXT YEAR ARIANESPACE IS OWED C27 MILLION ROBERT FERCHAT TELESAT MOBILE CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY EXPECTS TO MAKE A PROPOSAL TO ITS CREDITORS IN ABOUT A WEEK HE SAID WORK ON THE SATELLITE SYSTEM WILL CONTINUE AND THAT HE IS CONFIDENT THE PROJECT WILL BE IMPLEMENTED AS PLANNED TELESAT MOBILE AND AMERICAN MOBILE HAVE CONTRACTED WITH THE TEAM OF SPAR AEROSPACE LTD TORONTO AND HUGHES AIRCRAFT CO LOS ANGELES TO BUILD THE TWO MOBILE COMMUNICATIONS SATELLITES TO BE LAUNCHED IN 1994 HUGHES AIRCRAFT IS ALSO A GM SUBSIDIARY 9306160148 930616 KAISER STEEL CHANGES NAME RANCHO CUCAMONGA CALIF KAISER STEEL RESOURCES INC SAID ITS SHAREHOLDERS APPROVED AN IMMEDIATE CHANGE IN THE COMPANY'S NAME TO KAISER RESOURCES INC KAISER RESOURCES AN ENVIRONMENTAL CONCERN THAT HAS BEEN DEVELOPING ASSETS OF THE FORMER KAISER STEEL CORP SAID IT ISN'T IN THE STEEL BUSINESS AND THE OLD NAME CAUSED CONFUSION 9306160147 930616 WHO'S NEWS TORO CO TORO CO BLOOMINGTON MINN J LAWRENCE MCINTYRE 51 YEARS OLD CURRENTLY A PRINCIPAL SECURITIES LAW PARTNER AT THE LAW FIRM OF DOHERTY RUMBLE & BUTLER WAS NAMED VICE PRESIDENT SECRETARY AND GENERAL COUNSEL OF THIS PROVIDER OF LAWN AND TURF CARE PRODUCTS SUCCEEDING VERNON A JOHNSON 64 WHO IS RETIRING AUG 15 9306160146 930616 INTERNATIONAL FOKKER GETS ORDERS FOR 15 JETLINERS FROM ASIAN FIRMS BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL PARIS DUTCH AIRCRAFT MAKER FOKKER NV FORMALLY LAUNCHED THE FOKKER70 REGIONAL JETLINER WITH A TOTAL OF 15 ORDERS FROM A PAIR OF INDONESIAN AIRLINES FOKKER PRESIDENT ERIK JAN NEDERKOORN DECLINED TO DISCLOSE THE VALUE OF THE DEAL BUT DUTCH ANALYSTS ESTIMATED IT AT 250 MILLION SEMPATI AIR ORDERED 10 OF THE AIRCRAFT AND TOOK OPTIONS ON FIVE MORE PELITA AIR SERVICE ORDERED FIVE PLANES WITH OPTIONS FOR AN ADDITIONAL FIVE BOTH AIRLINES WILL OUTFIT THE PLANES WITH ENGINES FROM ROLLSROYCE PLC OF BRITAIN WHICH SAID THE ENGINE DEALS ARE WORTH UP TO 70 MILLION 107 MILLION THE FIRST FOKKER70 DELIVERIES WILL BE IN 1995 THE EXPECTED ANNOUNCEMENT TO GO FORWARD WITH THE FOKKER70 MADE AT THE PARIS AIR SHOW MARKS THE DUTCH COMPANY'S FIRST PRODUCT LAUNCH SINCE DAIMLERBENZ AG UNIT DEUTSCHE AEROSPACE AG TOOK A 51 STAKE IN FOKKER THIS YEAR A 79SEAT AIRCRAFT THE FOKKER70 IS A SHORTENED VERSION OF THE SUCCESSFUL FOKKER100 WHICH SEATS 100 PEOPLE WHILE THE NEW PLANE IS SEEN AS A CRUCIAL ADDITION TO THE DUTCH MANUFACTURER'S PRODUCT LINE SOME ANALYSTS ALSO SEE IT AS A REPLACEMENT FOR FOKKER'S AGING F28 A 70SEAT JETLINER NO LONGER IN PRODUCTION ANALYSTS PORTRAYED FOKKER'S DECISION TO EXTEND ITS PRODUCT LINE AS KEY TO THE COMPANY'S FUTURE SUCCESS IT'S IMPORTANT FOR THEIR MARKETING SAID RICHARD BRAKENHOFF OF MEES PIERSON NV IN AMSTERDAM IT'S MORE INTERESTING FOR AN AIRLINE TO BUY A FAMILY OF AIRCRAFT RATHER THAN A SINGLE PLANE BECAUSE IT REDUCES MAINTENANCE AND TRAINING COSTS THE DUTCH COMPANY IS ALSO CONSIDERING STRETCHING THE FOKKER100 TO INCREASE SEATING CAPACITY TO ABOUT 130 PASSENGERS AND THUS FORMING A COMPLETE SET OF REGIONAL JETLINERS SUCH IDEAS HAVE STRONG SUPPORT FROM FOKKER'S NEW PARENT DEUTSCHE AEROSPACE THE GERMAN COMPANY HAD PLANS TO BUILD ITS OWN 130SEAT JETLINER BEFORE DECIDING TO ACQUIRE A MAJORITY STAKE IN FOKKER A MAJOR SHAREHOLDER IN THE AIRBUS INDUSTRIE CONSORTIUM DEUTSCHE AEROSPACE ALSO WANTS TO PROVIDE A FULL RANGE OF REGIONAL AIRCRAFT 9306160145 930616 INSIDE TRACK BOWNE'S CHAIRMAN 3 OTHER EXECUTIVES SELL STOCK IN FIRM SEC FILINGS SHOW BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL WITH BOWNE & CO'S SHARE PRICE NEAR 52WEEK HIGHS KEY INSIDERS INCLUDING THE COMPANY'S CHAIRMAN HAVE BEEN DUMPING LARGE AMOUNTS OF STOCK SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW FOUR INSIDERS AT THE NEW YORK CONCERN ONE OF THE WORLD'S LARGEST FINANCIAL PRINTERS SOLD 134000 SHARES AT AN AVERAGE PRICE OF 20 EACH BETWEEN MARCH AND MIDMAY SEC FILINGS SHOW BOWNE SOON THEREAFTER EDGED UP TO A 52WEEK SETTLEMENT HIGH OF 2050 A SHARE ON MAY 21 BEFORE EASING BACK TO CURRENT LEVELS AROUND 1850 LATE TUESDAY AFTERNOON BOWNE WAS AT 1875 DOWN 125 CENTS IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING AT THE BEGINNING OF THE YEAR BOWNE FETCHED 16 A SHARE RICHARD H KOONTZ THE COMPANY'S CHAIRMAN SOLD OFF 65 OF HIS DIRECT HOLDINGS BETWEEN MAY 7 AND MAY 10 DISPOSING OF 120600 SHARES AT AN AVERAGE 2038 A SHARE SEC FILINGS SHOW TO DIVERSIFY PORTFOLIO MR KOONTZ WHO ALSO IS BOWNE'S CHIEF EXECUTIVE OFFICER AND PRESIDENT SAID HIS SALES WERE MEANT TO DIVERSIFY HIS PERSONAL PORTFOLIO AND TO PAY OFF DEBT AND TAXES RELATED TO EARLIER SHARE PURCHASES IN ADDITION TO OWNING 65080 SHARES HE HOLDS OPTIONS THAT ARE CURRENTLY EXERCISABLE TO ACQUIRE 40000 BOWNE SHARES WHILE ACKNOWLEDGING THAT THE SALE OF NEARLY TWOTHIRDS OF HIS HOLDINGS IN BOWNE COULD SEND A NEGATIVE SIGNAL TO INVESTORS MR KOONTZ INSISTED THAT THE SALES WERE FOR STRICTLY PERSONAL REASONS HAVING NOTHING TO DO WITH COMPANY PROSPECTS I CAN ONLY DO THIS AT TIME WHEN THINGS ARE GOING VERY WELL FOR THE COMPANY HE SAID LAST WEEK THE COMPANY REPORTED ALMOST A 10 RISE IN NET INCOME FOR THE FISCALSECOND QUARTER ENDED IN APRIL TO 67 CENTS A SHARE FROM 61 CENTS ANALYSTS EXPECTED 65 CENTS TO 70 CENTS A SHARE ANALYSTS NOTE THAT ALTHOUGH THE EARNINGS GROWTH HAS BEEN STRONG RECENTLY BOWNE RELIES HEAVILY ON REVENUE FROM THE PRODUCTION OF PROSPECTUSES FOR INITIAL PUBLIC OFFERINGS AND THUS IS VULNERABLE TO SWINGS IN FINANCIAL MARKETS THE STOCK HISTORICALLY HAS TRADED RELATIVE TO PEOPLE'S PERCEPTION OF THE IPO MARKET SAID RUDOLF A HOKANSON AN ANALYST WITH KEMPER SECURITES IN CHICAGO HE SAID THE IPO MARKET HAS BEEN STRONG THIS YEAR ALTHOUGH IT HAS SEEN SOME MODEST DECLINE DURING THE PAST FEW WEEKS BOWNE HAS TAKEN STEPS TO REDUCE DEPENDENCE ON A HOT IPO MARKET THROUGH DIVERSIFICATION INTO ELECTRONICFILING SYSTEMS FOR CORPORATE DISCLOSURES AND THROUGH GREATER EMPHASIS ON THE MUTUALFUND BUSINESS BUT THE COMPANY MAY BE APPROACHING THE HIGHS OF ITS CURRENT EARNING POTENTIAL MR HOKANSON SAID THEY SEEM TO BE RUNNING CLOSE TO PEAK EARNINGS HE SAID WARNING THAT THE FUTURE OF BOWNE'S SHARE PRICE DEPENDS ON PERCEPTIONS OF HOW VULNERABLE THE COMPANY IS TO THE CYCLICAL NATURE OF THE FINANCIALPRINTING INDUSTRY THE KEMPER ANALYST PREDICTED THAT BOWNE'S SHARE PRICE WILL FLUCTUATE IN A 17 TO 24 RANGE OVER THE NEXT 12 MONTHS HE SAID HIS FORECAST FOR THIRDQUARTER NET INCOME ENDING JULY 31 IS 41 CENTS A SHARE VS 38 CENTS A SHARE A YEAR EARLIER BOWNE VICE PRESIDENT ALLEN D MAROLD WHO SLASHED HIS HOLDINGS BY 87 DISPOSING OF 6600 SHARES FROM LATE MARCH TO LATE APRIL AT AN AVERAGE 1950 A SHARE SAID HE TOO SOLD FOR PERSONAL REASONS MR MAROLD SAID HE WANTED TO DIVERSIFY HIS PORTFOLIO AND RAISE CASH TO RETIRE SOME OF HIS HOME MORTGAGE IN NO WAY HE SAID DID HIS SALE WHICH LEAVES HIM WITH 1012 DIRECTLY HELD SHARES 431 INDIRECTLY HELD SHARES AND OPTIONS CURRENTLY EXERCISABLE TO ACQUIRE 18500 SHARES REFLECT CONCERN ABOUT FUTURE SHAREPRICE APPRECIATION AT BOWNE I DON'T FEEL LIKE I SOLD AT THE TOP HE SAID I STILL FEEL THERE'S STRONG UPSIDE POTENTIAL FOR OUR STOCK VICE PRESIDENT THOMAS J VOS SAID HE SOLD ALL OF HIS 1000 DIRECTLY HELD SHARES ON APRIL 27 BECAUSE HE NEEDED THE CASH THE SALE LEFT HIM WITH CURRENTLY EXERCISABLE OPTIONS TO ACQUIRE 15000 SHARES DIRECTOR AND FORMER CHAIRMAN FRANZ VON ZIEGESAR SOLD AROUND 15 OF HIS DIRECT HOLDING IN MARCH DISPOSING OF 7000 SHARES AT AN AVERAGE PRICE OF 1773 MR VON ZIEGESAR WHO HOLDS 8000 SHARES INDIRECTLY COULDN'T BE REACHED FOR COMMENT 9306160144 930616 WHO'S NEWS PROTEIN DESIGN LABS INC PROTEIN DESIGN LABS INC MOUNTAIN VIEW CALIF MAX LINK 53YEAROLD CHIEF EXECUTIVE OFFICER OF LONDONBASED CORANGE LTD WAS ELECTED TO THE BOARD OF THIS BIOTECHNOLOGY COMPANY EXPANDING ITS MEMBERSHIP TO SIX 9306160143 930616 WHO'S NEWS PROACTIVE SOFTWARE INC PROACTIVE SOFTWARE INC MOUNTAIN VIEW CALIF JOHN R LUONGO 43 YEARS OLD A FORMER SENIOR VICE PRESIDENT AT ORACLE CORP HAS BEEN NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS SOFTWARE COMPANY SUCCEEDING FOUNDER STEVEN M GOLDSWORTHY WHO REMAINS CHAIRMAN 9306160142 930616 WHO'S NEWS MCDERMOTT INTERNATIONAL INC MCDERMOTT INTERNATIONAL INC NEW ORLEANS THEODORE H BLACK JOHN N TURNER AND BROCK A HATTOX WERE NAMED TO THE BOARD OF THIS ENERGY SERVICES COMPANY EFFECTIVE YESTERDAY MR BLACK 64 YEARS OLD IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF INGERSOLLRAND CO MR TURNER 64 IS A PARTNER IN A TORONTO LAW FIRM OF MILLER THOMSON AND MR HATTOX 45 IS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF MCDERMOTT TWO BOARD MEMBERS JAMES E CUNNINGHAM AND JOHN P ECKERT WILL RETIRE FROM THE BOARD AUG 10 AND OCT 1 RESPECTIVELY AFTER THESE RETIREMENTS BOARD MEMBERSHIP WILL BE INCREASED BY ONE MEMBER TO 14 9306160141 930616 WHO'S NEWS UNION BANK OF SWITZERLAND UNION BANK OF SWITZERLAND ZURICH J MICHAEL GAFFNEY 52 YEARS OLD WAS NAMED CHIEF INVESTMENT OFFICER AT UBS NORTH AMERICA A NEW YORKBASED UNIT OF THIS INTERNATIONAL BANK MR GAFFNEY WHOSE POSITION IS NEWLY CREATED HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF INVESTMENT OFFICER AT USF&G CORP IN BALTIMORE 9306160140 930616 WHO'S NEWS GENERAL SIGNAL CORP GENERAL SIGNAL CORP STAMFORD CONN MICHAEL SCHNABELKUEHN 48 YEARS OLD WAS NAMED PRESIDENT OF THE COMPANY'S DEZURIK UNIT A SARTELL MINN MANUFACTURER OF SPECIALTY VALVES MR SCHNABELKUEHN IS CURRENTLY PRESIDENT OF RICHARD KLINGER AG A UNIT OF KLINGER GROUP A WORLDWIDE MAKER OF INDUSTRIAL AND AUTOMOTIVE GASKETS SHEETING AND FLUIDCONTROL VALVES HE IS ALSO CHIEF EXECUTIVE OF THE COMPANY'S US UNIT RICHARD KLINGER INC SIDNEY OHIO MR SCHNABELKUEHN WILL SUCCEED ALOIS H KREMERS 58 WHO RECENTLY ANNOUNCED HIS PLAN TO RETIRE BUT HAS NOT SET A DATE MR SCHNABELKUEHN ASSUMES HIS NEW POSITION JULY 6 GENERAL SIGNAL IS A MAKER OF EQUIPMENT FOR THE PROCESSCONTROL ELECTRICAL SEMICONDUCTOR AND TELECOMMUNICATIONS INDUSTRIES 9306160138 930616 TREASURY SETS OFFERING OF SHORTTERM BILLS WASHINGTON THE TREASURY PLANS TO RAISE 50 MILLION IN NEW CASH WITH THE SALE MONDAY OF ABOUT 24 BILLION IN SHORTTERM BILLS TO REDEEM 2395 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING SEPT 23 1993 AND DEC 23 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794E34 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794G99 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9306160137 930616 RULE OF LAW GINSBURG ON ROE V WADE BY RUTH BADER GINSBURG EXCERPTS FROM A MARCH SPEECH AT NEW YORK UNIVERSITY LAW SCHOOL THE 72 JUDGMENT IN ROE V WADE DECLARED VIOLATIVE OF THE DUE PROCESS CLAUSE OF THE FOURTEENTH AMENDMENT A TEXAS CRIMINAL ABORTION STATUTE THAT EXCEPTED FROM CRIMINALITY ONLY A LIFESAVING PROCEDURE ON BEHALF OF THE PREGNANT WOMAN SUPPOSE THE COURT HAD STOPPED THERE THUS DECLARING UNCONSTITUTIONAL THE MOST EXTREME BRAND OF LAW IN THE NATION AND HAD NOT GONE ON AS THE COURT DID IN ROE TO FASHION A REGIME BLANKETING THE SUBJECT A SET OF RULES THAT DISPLACED VIRTUALLY EVERY STATE LAW THEN IN FORCE WOULD THERE HAVE BEEN THE TWENTYYEAR CONTROVERSY WE HAVE WITNESSED A LESS ENCOMPASSING ROE I BELIEVE MIGHT HAVE SERVED TO REDUCE RATHER THAN TO FUEL CONTROVERSY THE IDEA OF THE WOMAN IN CONTROL OF HER DESTINY AND HER PLACE IN SOCIETY WAS LESS PROMINENT IN THE ROE DECISION ITSELF WHICH COUPLED WITH THE RIGHTS OF THE PREGNANT WOMAN THE FREE EXERCISE OF HER PHYSICIAN'S MEDICAL JUDGMENT THE ROE DECISION MIGHT HAVE BEEN LESS OF A STORM CENTER HAD IT BOTH HONED IN MORE PRECISELY ON THE WOMEN'S EQUALITY DIMENSION OF THE ISSUE AND CORRESPONDINGLY ATTEMPTED NOTHING MORE BOLD AT THAT TIME THAN THE MODE OF DECISIONMAKING THE COURT EMPLOYED IN THE 1970S GENDER CLASSIFICATION CASES IN FACT THE VERY TERM ROE WAS DECIDED THE SUPREME COURT HAD ON ITS CALENDAR A CASE THAT COULD HAVE SERVED AS A BRIDGE LINKING REPRODUCTIVE CHOICE TO DISADVANTAGEOUS TREATMENT OF WOMEN ON THE BASIS OF THEIR SEX THE CASE WAS STRUCK V SECRETARY OF DEFENSE CAPTAIN SUSAN STRUCK WAS A CAREER OFFICER HER PERFORMANCE AS A MANAGER AND NURSE WAS EXEMPLARY CAPTAIN STRUCK HAD AVOIDED THE DRUGS AND ALCOHOL THAT HOOKED MANY SERVICE MEMBERS IN THE LATE 1960S AND EARLY 1970S BUT SHE DID BECOME PREGNANT WHILE STATIONED IN VIETNAM SHE UNDERTOOK TO USE AND IN FACT USED ONLY HER ACCUMULATED LEAVE TIME FOR CHILDBIRTH SHE DECLARED HER INTENTION TO PLACE AND IN FACT PLACED HER CHILD FOR ADOPTION IMMEDIATELY AFTER BIRTH HER RELIGIOUS FAITH PRECLUDED RECOURSE TO ABORTION TWO FEATURES OF CAPTAIN STRUCK'S CASE ARE PARTICULARLY NOTEWORTHY FIRST THE RULE SHE CHALLENGED WAS UNEQUIVOCAL AND TYPICAL OF THE TIME IT PROVIDED A WOMAN OFFICER WILL BE DISCHARGED FROM THE SERVICE WITH THE LEAST PRACTICABLE DELAY WHEN A DETERMINATION IS MADE BY A MEDICAL OFFICER THAT SHE IS PREGNANT A SECOND STRIKING ELEMENT OF CAPTAIN STRUCK'S CASE WAS THE ESCAPE ROUTE AVAILABLE TO HER WHICH SHE CHOSE NOT TO TAKE AIR FORCE REGULATIONS CURRENT AT THE START OF THE 1970S PROVIDED THE AIR FORCE MEDICAL SERVICE IS NOT SUBJECT TO STATE LAWS IN THE PERFORMANCE OF ITS FUNCTIONS WHEN MEDICALLY INDICATED OR FOR REASONS INVOLVING MEDICAL HEALTH PREGNANCIES MAY BE TERMINATED IN AIR FORCE HOSPITALS CAPTAIN STRUCK ARGUED PRINCIPALLY THAT THE REGULATION MANDATING HER DISCHARGE VIOLATED THE EQUAL PROTECTION OF THE LAWS GUARANTEE IMPLICIT IN THE FIFTH AMENDMENT'S DUE PROCESS CLAUSE SHE URGED THAT THE AIR FORCE REGIME DIFFERENTIATED INVIDIOUSLY BY ALLOWING MALES WHO BECAME FATHERS BUT NOT FEMALES WHO BECAME MOTHERS TO REMAIN IN SERVICE AND BY ALLOWING WOMEN WHO HAD UNDERGONE ABORTIONS BUT NOT WOMEN WHO DELIVERED INFANTS TO CONTINUE THEIR MILITARY CAREERS HER PLEAS WERE UNSUCCESSFUL IN THE LOWER COURTS BUT ON OCTOBER 24 1972 LESS THAN THREE MONTHS BEFORE THE ROE DECISION THE SUPREME COURT GRANTED HER PETITION FOR CERTIORARI AT THAT POINT THE AIR FORCE DECIDED IT WOULD RATHER SWITCH THAN FIGHT AT THE END OF NOVEMBER 1972 IT GRANTED CAPTAIN STRUCK A WAIVER OF THE ONCE UNWAIVABLE REGULATION AND PERMITTED HER TO CONTINUE HER SERVICE AS AN AIR FORCE OFFICER THE SOLICITOR GENERAL PROMPTLY AND SUCCESSFULLY SUGGESTED THAT THE CASE HAD BECOME MOOT GIVEN THE PARADE OF CASES ON THE COURT'S FULL CALENDAR IT IS DOUBTFUL THAT THE JUSTICES TRAINED FURTHER ATTENTION ON THE STRUCK SCENARIO WITH MORE TIME AND SPACE FOR REFLECTION HOWEVER AND PERHAPS A FEMALE PRESENCE ON THE COURT MIGHT THE JUSTICES HAVE GAINED AT LEAST THESE TWO INSIGHTS FIRST IF EVEN THE MILITARY AN INSTITUTION NOT KNOWN FOR AVANTGARDE POLICY HAD TAKEN TO PROVIDING FACILITIES FOR ABORTION THEN WAS NOT A DECISION OF ROE'S MUSCULARITY UNNECESSARY SECOND CONFRONTED WITH CAPTAIN STRUCK'S UNWANTED DISCHARGE MIGHT THE COURT HAVE COMPREHENDED AN ARGUMENT OR AT LEAST GLIMPSED A REALITY IT LATER RESISTED THAT DISADVANTAGEOUS TREATMENT OF A WOMAN BECAUSE OF HER PREGNANCY AND REPRODUCTIVE CHOICE IS A PARADIGM CASE OF DISCRIMINATION ON THE BASIS OF SEX THE COURT RULED IN 1973 FOR EXAMPLE THAT MARRIED WOMEN IN THE MILITARY WERE ENTITLED TO THE HOUSING ALLOWANCE AND FAMILY MEDICAL CARE BENEFITS THAT CONGRESS HAD PROVIDED SOLELY FOR MARRIED MEN IN THE MILITARY TWO YEARS LATER THE COURT HELD IT UNCONSTITUTIONAL FOR A STATE TO ALLOW A PARENT TO STOP SUPPORTING A DAUGHTER ONCE SHE REACHED THE AGE OF 18 WHILE REQUIRING PARENTAL SUPPORT FOR A SON UNTIL HE TURNED 21 IN 1975 AND AGAIN IN 1979 THE COURT DECLARED THAT STATE JURYSELECTION SYSTEMS COULD NOT EXCLUDE OR EXEMPT WOMEN AS A CLASS IN DECISIONS RUNNING FROM 1975 TO 1980 THE COURT DELETED THE PRINCIPAL EXPLICITLY SEXBASED CLASSIFICATIONS IN SOCIAL INSURANCE AND WORKERS' COMPENSATION SCHEMES IN 1981 THE COURT SAID NEVERMORE TO A LAW DESIGNATING THE HUSBAND HEAD AND MASTER OF THE HOUSEHOLD THE BACKDROP FOR THESE RULINGS WAS A PHENOMENAL EXPANSION IN THE YEARS FROM 1961 TO 1971 OF WOMEN'S EMPLOYMENT OUTSIDE THE HOME THE CIVIL RIGHTS MOVEMENT OF THE 1960S AND THE PRECEDENTS SET IN THAT STRUGGLE AND A REVIVED FEMINIST MOVEMENT IN THE MAIN THE COURT INVALIDATED LAWS THAT HAD BECOME OBSOLETE RETAINED INTO THE 1970S BY ONLY A FEW OF THE STATES THE COURT IN EFFECT OPENED A DIALOGUE WITH THE POLITICAL BRANCHES OF GOVERNMENT IN ESSENCE THE COURT INSTRUCTED CONGRESS AND STATE LEGISLATURES RETHINK ANCIENT POSITIONS ON THESE QUESTIONS THE BALL ONE MIGHT SAY WAS TOSSED BACK INTO THE LEGISLATORS' COURT WHERE THE POLITICAL FORCES OF THE DAY COULD OPERATE THE SUPREME COURT WROTE MODESTLY IT PUT FORWARD NO GRAND PHILOSOPHY BUT BY REQUIRING LEGISLATIVE REEXAMINATION OF ONCE CUSTOMARY SEXBASED CLASSIFICATIONS THE COURT HELPED TO ENSURE THAT LAWS AND REGULATIONS WOULD CATCH UP WITH A CHANGED WORLD ROE V WADE IN CONTRAST INVITED NO DIALOGUE WITH LEGISLATORS INSTEAD IT SEEMED ENTIRELY TO REMOVE THE BALL FROM THE LEGISLATORS' COURT IN 1973 WHEN ROE V WADE ISSUED ABORTION LAW WAS IN A STATE OF CHANGE ACROSS THE NATION AS THE SUPREME COURT ITSELF NOTED THERE WAS A MARKED TREND IN STATE LEGISLATURES TOWARD LIBERALIZATION OF ABORTION STATUTES NO MEASURED MOTION THE ROE DECISION LEFT VIRTUALLY NO STATE WITH LAWS FULLY CONFORMING TO THE COURT'S DELINEATION OF ABORTION REGULATION STILL PERMISSIBLE AROUND THAT EXTRAORDINARY DECISION A WELLORGANIZED AND VOCAL RIGHTTOLIFE MOVEMENT RALLIED AND SUCCEEDED FOR A CONSIDERABLE TIME IN TURNING THE LEGISLATIVE TIDE IN THE OPPOSITE DIRECTION 9306160136 930616 CURRENT ACCOUNT DEFICIT NARROWS TO 2091 BILLION BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE DEFICIT ON THE BROADEST MEASURE OF US TRADE THE CURRENT ACCOUNT NARROWED TO 2091 BILLION IN THE FIRST QUARTER FROM 2369 BILLION IN THE FOURTH QUARTER OF LAST YEAR THE COMMERCE DEPARTMENT SAID AN INCREASE IN THE TRADE DEFICIT IN GOODS WAS MORE THAN OFFSET BY AN INCREASE IN THE SURPLUS IN SERVICES A SHIFT TO A SURPLUS IN THE FLOW OF INVESTMENT INCOME AND A DECLINE IN US GOVERNMENT GRANTS AND SIMILAR PAYMENTS TO FOREIGNERS THE DEPARTMENT SAID REVISING PREVIOUS MEASURES THE DEPARTMENT SAID FOREIGNERS PUT 238 BILLION MORE INTO US FACTORIES REAL ESTATE AND CORPORATIONS THAN THEY PULLED OUT IN 1992 IN MARCH THE DEPARTMENT ESTIMATED FOREIGNERS TOOK OUT 395 BILLION MORE THAN THEY PUT IN THAT WOULD HAVE BEEN THE FIRST SUCH REVERSAL IN DECADES NET FOREIGN DIRECT INVESTMENT IN THE US IN 1992 WAS STILL SUBSTANTIALLY LESS THAN IN THE LATE 1980S IN THE FIRST QUARTER NET FOREIGN DIRECT INVESTMENT ROSE TO 449 BILLION FROM 309 BILLION IN THE FOURTH QUARTER FOREIGN PURCHASES OF TREASURY SECURITIES AND OTHER US SECURITIES FELL SHARPLY FOREIGNERS INVESTED 1418 BILLION IN TREASURY SECURITIES IN THE QUARTER DOWN FROM AN UNUSUALLY LARGE 2123 BILLION IN THE FOURTH QUARTER THE US TRADE DEFICIT IN GOODS AMOUNTED TO 2907 BILLION IN THE FIRST QUARTER SUBSTANTIALLY WIDER THAN THE 2595 BILLION IN THE FOURTH QUARTER THE SURPLUS IN SERVICES WHICH INCLUDES TRAVEL ROYALTIES AND INSURANCE AMONG OTHER THINGS AMOUNTED TO 1462 BILLION UP FROM 1343 BILLION THE PREVIOUS QUARTER FOR ALL OF 1992 THE COMMERCE DEPARTMENT NOW PUTS THE CURRENTACCOUNT DEFICIT AT 664 BILLION EXCEPT FOR THE REVISED 1991 DEFICIT OF 368 BILLION WHICH WAS DISTORTED BY FOREIGN CONTRIBUTIONS TO PAY FOR THE PERSIAN GULF WAR THE 1992 CURRENTACCOUNT DEFICIT WAS THE SMALLEST IN NEARLY A DECADE BUT THE CLINTON ADMINISTRATION HAS SAID IT EXPECTS THE DEFICIT TO DETERIORATE THIS YEAR BECAUSE THE US ECONOMY IS GROWING FASTER THAN THE ECONOMIES OF ITS MAJOR TRADING PARTNERS THE CURRENT ACCOUNT REFLECTS FLOWS OF GOODS AND SERVICES INVESTMENT INCOME AND GOVERNMENT GRANTS ALL OF THE FIGURES ARE ADJUSTED TO REMOVE USUAL SEASONAL FLUCTUATIONS 9306160135 930616 WHO'S NEWS BARINGS PLC BARINGS PLC LONDON WILLIAM G HOLMAN 40 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BARING SECURITIES INC THE NEW YORK UNIT OF THIS INTERNATIONAL INVESTMENT BANKING FIRM MR HOLMAN WHO HAD BEEN EXECUTIVE VICE PRESIDENT OF FIRST CALL CORP IN NEW YORK SUCCEEDS JAMES G WILDERS REED 41 WHO LEFT RECENTLY TO TAKE AN EXECUTIVE VICE PRESIDENT POSITION AT NOMURA SECURITIES INTERNATIONAL INC 9306160134 930616 WHO'S NEWS NYNEX CORP NYNEX CORP NEW YORK DONALD B REED 48 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE TELECOMMUNICATIONS COMPANY'S NEW ENGLAND TELEPHONE CO UNIT EFFECTIVE IMMEDIATELY HE SUCCEEDS PAUL C O'BRIEN 54 WHO ANNOUNCED THAT HE PLANS TO RETIRE FROM THE COMPANY IN LATE 1994 MR O'BRIEN WAS NAMED TO THE TRANSITIONAL POSITION OF CHAIRMAN A SPOKESWOMAN FOR THE BOSTONBASED UNIT SAID THE COMPANY USES THE TITLE OF CHAIRMAN WHEN A PRESIDENT ANNOUNCES PLANS TO RETIRE MR REED WAS MOST RECENTLY EXECUTIVE VICE PRESIDENT 9306160133 930616 CD YIELDS FINISHED WEEK LITTLE CHANGED NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED FOR THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS ROSE TO 272 FROM 270 ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS CREPT UP TO 481 FROM 480 THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS REMAINED AT 315 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD FELL TO 506 FROM 530 THE SURVEY SAID ON LARGEDENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 95000 OR MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE REMAINED AT 282 ON FIVEYEAR JUMBOS THE AVERAGE SLIPPED TO 5 FROM 502 ACCORDING TO BANXQUOTE 9306160132 930616 WHO'S NEWS COPLEY REAL ESTATE ADVISORS INC COPLEY REAL ESTATE ADVISORS INC BOSTON STEVEN E WHEELER FORMERLY CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF HANCOCK REALTY INVESTORS WAS NAMED MANAGING DIRECTOR OF THIS ADVISOR TO COPLEY PROPERTIES INC A REAL ESTATE INVESTMENT TRUST COPLEY REAL ESTATE IS AN 80OWNED UNIT OF NEW ENGLAND INVESTMENT COS 9306160131 930616 WHO'S NEWS ADVANCE ROSS CORP ADVANCE ROSS CORP CHICAGO PAUL G YOVOVICH 39YEAROLD FORMER PRESIDENT OF CENTEL CORP'S CENTRAL TELEPHONE CO UNIT WAS NAMED PRESIDENT AND TO THE NEW POST OF CHIEF OPERATING OFFICER OF THIS OPERATOR OF VALUEADDED TAX REFUND SYSTEMS AS PRESIDENT HE SUCCEEDS HARVE A FERRILL WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9306160130 930616 WHO'S NEWS REVCO DS INC REVCO DS INC TWINSBURG OHIO JAMES J HAGAN VICE PRESIDENT AND TREASURER WAS PROMOTED TO SENIOR VICE PRESIDENT OF REAL ESTATE AT THIS DRUGSTORE CHAIN HE SUCCEEDS MARVIN J SOLGANIK WHO WILL CONTINUE WITH REVCO AS A CONSULTANT FOR NEW BUSINESS DEVELOPMENT ROBERT T RAAF FORMER VICE PRESIDENT OF TAXES SUCCEEDS MR HAGAN MR RAAF WILL RETAIN HIS RESPONSIBILITIES FOR ALL TAX OPERATIONS OF THE COMPANY 9306160129 930616 WHO'S NEWS AMREP CORP AMREP CORP NEW YORK MOHAN VACHANI 50 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT THIS REAL ESTATE DEVELOPER AND INTERNATIONAL MAGAZINE DISTRIBUTOR MR VACHANI WHOSE POSITION IS NEWLY CREATED HAD BEEN VICE PRESIDENT AND CHIEF FINANCIAL OFFICER AT BEDFORD PROPERTIES OF LAFAYETTE CALIF A REAL ESTATE DEVELOPER THAT HOLDS ABOUT 181 OF AMREP 9306160128 930616 ARBITRAGE REBATES FROM MUNI BONDS CREATE WINDFALL BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL THE AGENCY DISCLOSED IN RESPONSE TO A REPORTER'S INQUIRY THAT IT HAS COLLECTED SOME 674 MILLION IN ARBITRAGE PAYMENTS SO FAR AS A RESULT OF THE STATUTE AN IRS SPOKESWOMAN SAID THE REBATES TOTALED 17 MILLION IN 1987 16 MILLION IN 1988 22 MILLION IN 1989 72 MILLION IN 1990 90 MILLION IN 1991 291 MILLION IN 1992 AND 166 MILLION THROUGH JUNE 8 OF THIS YEAR FORMER TREASURY TAX ATTORNEY JOE KROLIKOWSKI WHO WORKED ON THE REBATE STATUTE CALLED THESE TOTALS AN AMAZING WINDFALL SAYING ARCHITECTS OF THE 1986 LAW ASSUMED NO REVENUE GAIN FOR THE US ARBITRAGE IS EARNED IN THE MUNICIPALBOND MARKET BY INVESTING BOND PROCEEDS IN HIGHERYIELDING INSTRUMENTS THE PRACTICE HAS BEEN NOMINALLY OUTLAWED FOR YEARS BUT THE TAX CODE CONTAINS TECHNICAL EXCEPTIONS THAT WERE USED BY SOME MARKET PARTICIPANTS TO REAP SUBSTANTIAL ARBITRAGE PROFITS IN RESPONSE CONGRESS PASSED THE REBATE LAW AS PART OF THE 1986 TAX REFORM ACT MR KROLIKOWSKI WHO IS NOW GENERAL COUNSEL OF RRZ PUBLIC MARKETS INC A PITTSBURGHBASED SECURITIES FIRM SAID THAT REBATE RECEIPTS HAVE SURGED RECENTLY BECAUSE THE LAW REQUIRES ARBITRAGE PAYMENTS AT LEAST ONCE EVERY FIVE YEARS MEANING THAT THE HIGH VOLUME OF BONDS ISSUED IN THE MID1980S IS SPINNING OUT PAYMENTS NOW THE RECEIPTS ALSO HAVE SURGED BECAUSE OF THE FAVORABLE SPREADS BETWEEN TAXABLE AND TAXEXEMPT SECURITIES IN SOME OF THE YEARS LATER IN THE 1980S HE SAID M JANE DICKEY PRESIDENT OF THE NATIONAL ASSOCIATION OF BOND LAWYERS SAID THE LARGE CURRENT VOLUME OF REFUNDING BOND ISSUES MAY BE CONTRIBUTING TO INCREASED REBATE PAYMENTS BECAUSE SUCH PAYMENTS ARE DUE WHEN THE OLD BONDS BEING REFUNDED ARE RETIRED A CONSTITUTIONAL CHALLENGE ATTACKING THE REBATE LAW AS AN UNCONSTITUTIONAL TAX ON STATE AND LOCAL GOVERNMENTS WAS MOUNTED IN FEDERAL COURT AFTER THE LAW WAS ENACTED BUT IT WAS WITHDRAWN AFTER THE SUPREME COURT RULED IN ANOTHER BOND CASE THAT THE CONSTITUTION DOESN'T PROTECT THE TAXEXEMPT STATUS OF MUNICIPAL BONDS STATE AND LOCAL GOVERNMENTS BOND UNDERWRITERS AND OTHERS HAVE BEEN SEEKING RELIEF FROM THE ARBITRAGE REBATE LAW SINCE IT PASSED BUT THE TREASURY AND CONGRESS HAVE RESISTED SUCH EFFORTS SO FAR 9306160127 930616 CORRECTION SWISS BANK CORP HAS FILED A CLAIM AGAINST OTHER BANKS PARTICIPATING IN SWAP CONTRACTS THAT FAILED BECAUSE OF MACY'S BANKRUPTCY CASE BUT IT HAS NOT BROUGHT SUIT AGAINST THE BANKS MARTIN MAYER'S TUESDAY FEATURE ON THE EDITORIAL PAGE MISSTATED THE EVENTS 9306160126 930616 INTERNATIONAL MIYAZAWA FACES OUSTER THREAT IN REFORM FIGHT BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S WRANGLING OVER POLITICAL REFORM TOOK A NEW TWIST AS OPPOSITION PARTIES THREATENED TO SUBJECT PRIME MINISTER KIICHI MIYAZAWA TO A NOCONFIDENCE VOTE JUST THREE WEEKS BEFORE HE IS TO HOST THE SUMMIT OF THE GROUP OF SEVEN INDUSTRIALIZED NATIONS OPPOSITION POLITICIANS ARE MAKING HAY OF ATTEMPTS BY LEADERS OF THE SCANDALWRACKED RULING LIBERAL DEMOCRATIC PARTY TO QUASH REFORM IN THIS PARLIAMENTARY SESSION WHICH ENDS SUNDAY THE OPPOSITION PARTIES ALONE DON'T HAVE ENOUGH POWER TO GET A NOCONFIDENCE VOTE BUT MANY SELFPROCLAIMED REFORMERS WITHIN THE LDP HAVE HINTED THAT THEY MAY SUPPORT A MOVE TO BRING DOWN MR MIYAZAWA'S ADMINISTRATION BUT THE ODDS FAVOR THE STATUS QUO MANY ANALYSTS SAID THE REFORM PROPOSALS EFFORTS TO MAKE GOVERNMENT MORE REPRESENTATIVE AND RESPONSIVE WOULD THREATEN INCUMBENTS FROM ALL PARTIES AND SOME OBSERVERS SAY THE OPPOSITION'S TOUGH TALK IS MAINLY MEANT TO CONVINCE VOTERS THAT THE POLITICIANS ARE TRYING THEIR HARDEST EVEN THOUGH MANY HAVE WRITTEN OFF THE ISSUE ONE POSSIBLE SCENARIO IS THAT THE LDP AND THE OPPOSITION WILL REACH A LASTMINUTE COMPROMISE TO STUDY THE REFORM ISSUE FURTHER AND THEN VOW TO TRY TO PASS MEASURES NEXT YEAR IN A PUBLIC OPINION POLL PUBLISHED IN YESTERDAY'S NIHON KEIZAI SHIMBUN 816 OF RESPONDENTS SAID THAT IF POLITICAL REFORM DOESN'T PASS MR MIYAZAWA'S CABINET SHOULD EITHER RESIGN OR DISSOLVE PARLIAMENT AND CALL NEW ELECTIONS THE PUSH FOR REFORM BEGAN LAST YEAR AFTER LDP POWER BROKER SHIN KANEMARU ADMITTED TAKING ILLEGAL CAMPAIGN CONTRIBUTIONS FROM A PARCEL DELIVERY COMPANY WITH ALLEGED TIES TO GANGSTERS MR KANEMARU WAS ARRESTED THIS YEAR ON SEPARATE CHARGES OF TAX EVASION POLITICIANS SAY MR KANEMARU'S SHADY FINANCIAL DEALINGS WERE A PRODUCT OF JAPAN'S ELECTORAL SYSTEM WHICH MAKES IT COSTLY TO RUN FOR OFFICE AND DOES LITTLE TO RESTRICT HOW POLITICIANS RAISE CAMPAIGN FUNDS MR MIYAZAWA PROMISED TO CHANGE THE SYSTEM IN THIS PARLIAMENTARY SESSION BUT OTHER RULINGPARTY LEADERS RECENTLY DECIDED THAT'S IMPOSSIBLE SAYING DISAGREEMENTS OVER THE SHAPE OF REFORM ARE TOO SHARP SUPPORTERS AND OPPONENTS OF REFORM WITHIN THE LDP GOT INTO A SHOVING MATCH OUTSIDE A PARTY MEETING ROOM YESTERDAY THE THREEDAY ANNUAL SUMMIT OF G7 LEADERS BEGINS IN TOKYO ON JULY 7 9306160125 930616 BUSINESS BRIEF SOUTHWALL TECHNOLOGIES INC COMPANY EXPECTS A LOSS FOR ITS FISCAL SECOND QUARTER BATTERED BY THE SLUMPS IN THE CONSTRUCTION AND AEROSPACE INDUSTRIES SOUTHWALL TECHNOLOGIES INC SAID IT EXPECTS TO POST A LOSS FOR THE FISCAL SECOND QUARTER ENDING JULY 4 THAT COMPARES WITH NET INCOME OF 172000 FOR THE PERIOD A YEAR EARLIER ON SALES OF 63 MILLION THE PALO ALTO CALIF MAKER OF REFLECTIVE COATINGS FOR THE CONSTRUCTION AND AEROSPACE INDUSTRIES DIDN'T DISCLOSE THE AMOUNT OF THE LOSS IT DID SAY IT EXPECTS SALES TO IMPROVE IN FOLLOWING QUARTERS 9306160124 930616 FINANCING BUSINESS OSHAWA GROUP LTD OSHAWA GROUP LTD TORONTO SAID IT PLANS TO OFFER 100 MILLION CANADIAN DOLLARS US78 MILLION OF 8 1/4 UNSECURED DEBENTURES THAT WILL MATURE JUNE 30 2003 PROCEEDS WILL BE USED TO REPAY BANK DEBT AND FUND CAPITAL EXPENDITURES AND INVESTMENT OPPORTUNITIES THE FOOD DISTRIBUTOR AND RETAILER SAID THE ISSUE IS EXPECTED TO CLOSE BY JUNE 30 9306160123 930616 WHO'S NEWS BIOMAGNETIC TECHNOLOGIES INC SAN DIEGO BIOMAGNETIC TECHNOLOGIES INC SAID IT HAS BEGUN SEARCHING FOR A NEW PRESIDENT TO SUCCEED STEPHEN O JAMES WHO WILL CONTINUE TO SERVE AS THE MAGNETIC SOURCE IMAGING COMPANY'S PRESIDENT AND CHIEF EXECUTIVE UNTIL A NEW EXECUTIVE IS NAMED THE COMPANY SAID IT'S UNCLEAR WHO WILL FILL THE CHIEF EXECUTIVE'S POSITION IN A PREPARED STATEMENT MR JAMES SAID HE WILL SERVE AS A CONSULTANT AFTER A NEW PRESIDENT IS NAMED THE NEW PRESIDENT WILL HELP DIRECT THE COMPANY'S TRANSITION FROM A RESEARCH AND DEVELOPMENT FIRM TO A MARKETINGDRIVEN COMPANY MR JAMES 49 YEARS OLD WAS SAID BY A SPOKESWOMAN TO BE TRAVELING 9306160122 930616 PEPPERAND SALT THE MASTER OF THE QUID PRO SLOW THE ECONOMY IS GOING TO BLAZES CONGRESSIONAL PAY RAISES 9306160121 930616 MEDICINE DRUG SWITCHING CALLED A DANGER FOR MINORITIES BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL A PHARMACEUTICAL INDUSTRY GROUP CONTENDS THAT THE EFFORTS OF MANAGEDCARE HEALTH PLANS TO HOLD DOWN PRESCRIPTION DRUG COSTS MAY ENDANGER BLACKS HISPANICS AND OTHER MINORITY PATIENTS THE CONTENTION IS CONTAINED IN AN ARTICLE ON RACE ETHNICITY AND DRUG REACTIONS BY RICHARD A LEVY VICE PRESIDENT OF SCIENTIFIC AFFAIRS AT THE INDUSTRYSUPPORTED NATIONAL PHARMACEUTICAL COUNCIL DR LEVY CHARGES THAT A PROLIFERATION OF MANAGEDCARE AND GOVERNMENT PROGRAMS THAT LIMIT THE VARIETY OF DRUGS THAT DOCTORS CAN PRESCRIBE MAY RESULT IN MINORITY PATIENTS' RECEIVING MEDICATIONS THAT PRODUCE SUBOPTIMAL ADVERSE UNCONTROLLED OR UNEXPECTED RESPONSES HIS ARTICLE IS IN THE JUNE ISSUE OF PHARMACEUTICAL MEDICINE COMING OUT TODAY WE'RE SEEING THE EMERGENCE OF POLICY PROPOSALS THAT TEND TO TREAT ALL PATIENTS THE SAME OR GIVE DOCTORS LESS CHOICE IN TREATING PATIENTS DR LEVY SAYS THE REPORT ATTACKS EFFORTS BY MANAGEDCARE PLANS TO REDUCE PRESCRIPTIONDRUG COSTS THE PLANS USE FORMULARIES OR LISTS OF DRUGS FOR WHICH THEY WILL PAY THE PLANS ALSO MAY ALLOW THERAPEUTIC SUBSTITUTION THAT FILLS A PRESCRIPTION FOR A BRAND NAME DRUG WITH A SIMILAR USUALLY CHEAPER GENERIC VERSION OFFICIALS OF MANAGEDCARE ORGANIZATIONS SAY RACIAL AND ETHNIC DIFFERENCES IN DRUG RESPONSES ARE TAKEN INTO ACCOUNT IN THEIR FORMULARY AND THERAPEUTICSUBSTITUTION DECISIONS IN HIS ARTICLE DR LEVY SAYS ETHNIC AND RACIAL DIFFERENCES IN DRUG REACTIONS HAVE BEEN SHOWN IN A NUMBER OF DRUGS BLACKS AND HISPANIC PATIENTS SUFFER GREATER SIDE EFFECTS FROM SOME ANTIDEPRESSANTS WHILE ASIANS REQUIRE LOWER DOSAGES OF ANTIDEPRESSANTS FOR INSTANCE THE SCHIZOPHRENIA DRUG CLOZARIL MADE BY SANDOZ PHARMACEUTICALS CORP IS LINKED TO A SERIOUS BLOOD DISORDER AGRANULOCYTOSIS IN 20 OF JEWISH PATIENTS BUT ONLY 1 OF PATIENTS OVERALL A RECENT STUDY IN THE NEW ENGLAND JOURNAL OF MEDICINE SHOWED THAT MARION MERRELL DOW INC'S CARDIZEM A CALCIUM CHANNEL BLOCKER USED TO TREAT HIGH BLOOD PRESSURE WAS MOST EFFECTIVE IN BLACK PATIENTS BUT BRISTOLMYERS SQUIBB CO'S CAPOTEN AN ACE INHIBITOR FOR HYPERTENSION WAS AMONG THE LEAST EFFECTIVE IN BLACKS IN YOUNG WHITE PATIENTS HOWEVER THE REVERSE WAS TRUE ONE STUDY CITED BY DR LEVY FOUND THAT BLACKS DON'T RESPOND AS WELL AS WHITES TO ANOTHER CLASS OF HEART DRUGS BETA BLOCKERS BUT ONE BETA BLOCKER LABETALOL HAS BEEN SHOWN TO BE EQUALLY EFFECTIVE IN CONTROLLING BLOOD PRESSURE IN BLACK AND WHITE PATIENTS A HEALTHCARE ORGANIZATION THAT SUBSTITUTES ANOTHER BETA BLOCKER FOR LABETALOL MIGHT PUT BLACK PATIENTS AT A HEALTH RISK DR LEVY SAYS GENETIC DIFFERENCES IN METABOLISM ACCOUNT FOR MOST RACIAL AND ETHNIC DIFFERENCES DR LEVY SAYS IN HIS REPORT BUT OTHER FACTORS SUCH AS DIET SMOKING AND CULTURAL PERCEPTIONS OF ILLNESS MAY AFFECT HOW A PATIENT RESPONDS TO A DRUG DR LEVY'S REPORT IS CHALLENGED BY OFFICIALS OF MANAGEDCARE PLANS OUR GUIDELINES FOR SWITCHING WOULD FACTOR IN THAT CERTAIN SUBSETS OF THE POPULATION MIGHT RESPOND DIFFERENTLY AND THAT SHOULD BE TAKEN INTO CONSIDERATION SAYS JAMES CHAN PRODUCTEVALUATION PHARMACIST FOR KAISER PERMANENTE MEDICAL CARE PROGRAM IN LIVERMORE CALIF HENRY F BLISSENBACH PRESIDENT OF DIVERSIFIED PHARMACEUTICAL SERVICES INC BLOOMINGTON MINN WHICH MANAGES PRESCRIPTIONDRUG PROGRAMS FOR HEALTH PLANS SAYS WE PAY PRIMARY ATTENTION TO ANTIHYPERTENSIVE DRUGS WITH THE BLACK POPULATION IN MIND SO WE MAKE SURE THOSE DRUGS ARE IN THERE IN ADDITION FORMULARIES USUALLY ALLOW EXCEPTIONS WHEN REQUESTED BY A PHYSICIAN HE SAYS RACIAL DIFFERENCES ARE APPARENT IN ANTIDEPRESSANTS BUT CAN BE ACCOMMODATED SIMPLY BY ADJUSTING THE DOSAGE SAYS DOUGLAS KAY A PRACTICING PSYCHIATRIST AND SENIOR VICE PRESIDENT OF QUALITY ASSURANCE AT CMG HEALTH INC IN OWINGS MILLS MD WHICH RUNS MENTALHEALTH PROGRAMS FOR HEALTH PLANS CMG DOESN'T USE FORMULARIES OR THERAPEUTICSUBSTITUTION RULES BUT DR KAY SAYS A FORMULARY LIMITING PHYSICIANS TO EIGHT KEY DRUGS OUT OF THE COUPLE OF DOZEN AVAILABLE WOULDN'T HURT PATIENT CARE 9306160120 930616 WHO'S NEWS COMPUTER SCIENCES NAMES HONEYCUTT TO TWO TOP POSTS BY RHONDA L RUNDLE STAFF REPORTER OF THE WALL STREET JOURNAL COMPUTER SCIENCES CORP NAMED VAN B HONEYCUTT PRESIDENT CHIEF OPERATING OFFICER AND A DIRECTOR PLACING HIM IN LINE TO SUCCEED THE COMPANY'S LONGTIME CHIEF EXECUTIVE OFFICER WILLIAM R HOOVER MR HONEYCUTT A 48YEAROLD COMPUTER SCIENCES VETERAN WHO WAS ONE OF FOUR GROUP PRESIDENTS HAS OVERSEEN MUCH OF THE COMPANY'S GROWING COMMERCIAL BUSINESS COMPUTER SCIENCES CURRENTLY GETS ITS 25 BILLION IN ANNUAL REVENUE ABOUT EQUALLY FROM COMMERCIAL AND GOVERNMENT CUSTOMERS THE TITLE OF PRESIDENT WAS RELINQUISHED BY MR HOOVER WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OF THE EL SEGUNDO CALIF DATA MANAGEMENT CONCERN MR HOOVER HAD HELD ALL THREE TITLES SINCE 1972 THE POST OF CHIEF OPERATING OFFICER IS NEW MR HOOVER 63 HASN'T ANNOUNCED HIS RETIREMENT PLANS ALTHOUGH OTHER COMPANY EXECUTIVES HAVE STEPPED DOWN AT AGE 65 COMPUTER SCIENCES DOESN'T HAVE A MANDATORY RETIREMENT AGE AND ANALYSTS DIDN'T RULE OUT THE POSSIBILITY THAT MR HOOVER WOULD STAY BEYOND HIS 65TH BIRTHDAY MR HONEYCUTT SAID THERE WILL BE SOME MINOR ORGANIZATIONAL CHANGES IN THE INDUSTRY SERVICES GROUP HE HEADED SOMEONE FROM INSIDE THE COMPANY WILL BE NAMED FAIRLY SHORTLY TO TAKE OVER MOST OF HIS FORMER DUTIES HE SAID BUT MR HONEYCUTT WILL RETAIN DIRECT OVERSIGHT OF THE OUTSOURCING BUSINESS PART OF THE INDUSTRY SERVICES GROUP OUTSOURCING REFERS TO THE INCREASINGLY POPULAR PRACTICE OF USING AN OUTSIDE CONTRACTOR FOR SERVICES THAT WERE FORMERLY PERFORMED BY COMPANY EMPLOYEES IT WAS MR HONEYCUTT'S SUCCESS IN SPEARHEADING COMPUTER SCIENCE'S OUTSOURCING BUSINESS THAT BROUGHT HIM THE PROMOTION AND A SHOT AT THE TOP JOB IN A FEW YEARS THEY SAID IN LATE 1991 THE EXECUTIVE NEGOTIATED A MILESTONE PACT WITH GENERAL DYNAMICS CORP THAT HAS BEEN VALUED AT A WHOPPING 3 BILLION FOR THE 10YEAR LIFE OF THE CONTRACT COMPUTER SCIENCES' STRENGTH HAS HISTORICALLY BEEN AS A GOVERNMENT CONTRACTOR BUT INCREASED COMPETITION FOR FEDERAL CONTRACTS HAS MADE IT TOUGHER TO WIN AND RETAIN THAT BUSINESS THE FEDERAL PIPELINE WON'T HELP COMPUTER SCIENCES SUSTAIN A DOUBLEDIGIT GROWTH RATE THE COMPANY MUST LOOK TOWARD OUTSOURCING SAID JEFF NEWMAN AN ANALYST AT RAYMOND JAMES & ASSOCIATES A ST PETERSBURG FLA INVESTMENT CONCERN ANALYSTS SAID THEY DON'T EXPECT ANY RADICAL CHANGES IN THE WAKE OF THE EXECUTIVE CHANGE MR HONEYCUTT SUCCEEDS RETIRING DIRECTOR FELIX A KALINSKI THE COMPANY SAID 9306160119 930616 BUSINESS BRIEFS CODA ENERGY INC AGREED TO PURCHASE THE CAPITAL STOCK OF A CLOSELY HELD OIL AND GAS COMPANY MJM OIL & GAS INC FOR 15 MILLION THE FEDERAL RESERVE BOARD APPROVED THE MERGER OF HORIZON FINANCIAL SERVICES INC OF CLEVELAND WITH REPUBLIC BANCORP INC OF ANN ARBOR MICH LIBERTY CORP LOWERED BY 18 MILLION TO 518 MILLION ITS OFFER TO ACQUIRE NORTH AMERICAN NATIONAL CORP FOODARAMA SUPERMARKETS INC REACHED AN AGREEMENT IN PRINCIPLE WITH AN UNDISCLOSED BUYER FOR THE SALE OF THE COMPANY'S LONG ISLAND DIVISION OF FIVE STORES THE SALE PRICE WASN'T DISCLOSED TEXAS INSTRUMENTS INC SAID ITS DEFENSE SYSTEMS & ELECTRONICS GROUP WILL ADD 3416 GENERAL EXPENDABLE DECOYS VALUED AT 168 MILLION TO AN EXISTING CONTRACT WITH THE US NAVY THE MODIFICATION VALUES THE TOTAL CONTRACT AT 85 MILLION BIOWHITTAKER INC IN CONJUNCTION WITH ORGANON TEKNIKA/BIOTECHNOLOGY RESEARCH INSTITUTE WAS AWARDED A THREEYEAR CONTRACT TO PRODUCE A BOTULISM ANTITOXIN FOR THE ARMY'S MEDICAL MATERIEL DEVELOPMENT ACTIVITY 9306160118 930616 WHO'S NEWS RAYTHEON CO RAYTHEON CO LEXINGTON MASS ROBERT L SWAM VICE PRESIDENT AND HEAD OF RAYTHEON'S APPLIANCE GROUP WAS NAMED TO THE ADDITIONAL POSTS OF PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITS AMANA UNIT HE SUCCEEDS CHARLES M PETERS WHO RESIGNED TO PURSUE OTHER BUSINESS INTERESTS RAYTHEON OWNS APPLIANCE AIRCRAFT ELECTRONICS AND ENERGY AND ENVIRONMENTAL BUSINESSES 9306160117 930616 HYPERION 2005 STOCK BUYBACK NEW YORK HYPERION 2005 INVESTMENT GRADE OPPORTUNITY TERM TRUST INC SAID IT HAS BEGUN A STOCK BUYBACK PROGRAM UNDER WHICH IT WILL BUY AS MUCH AS 5 OF ITS SHARES OUTSTANDING AT A PRICE NOT IN EXCESS OF ITS NET ASSET VALUE WHICH WAS 936 A SHARE LAST FRIDAY THE CLOSEDEND INVESTMENT FUND'S SHARES CLOSED YESTERDAY AT 925 UP 375 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9306160116 930616 AUTOS HONDA DOUBLES SIZE OF RECALL TO BIGGEST EVER BY OSCAR SURIS AND GREGORY N RACZ STAFF REPORTERS OF THE WALL STREET JOURNAL HONDA MOTOR CO STRUGGLING WITH THIN PROFITS AND SLUGGISH SALES IS DOUBLING THE SIZE OF WHAT HAS TURNED INTO ITS LARGEST RECALL EVER INVOLVING 18 MILLION VEHICLES FEDERAL SAFETY REGULATORS SAID HONDA IS VOLUNTARILY EXTENDING A 1992 RECALL THAT ORIGINALLY AFFECTED MORE THAN 900000 19821985 MODEL HONDA ACCORD SEDANS SUSCEPTIBLE TO A DEFECT THAT COULD CAUSE GASOLINE LEAKS OR FIRES THE RECALL IS BEING EXPANDED TO INCLUDE 19861987 MODEL HONDA ACCORDS AND 19831987 MODEL HONDA PRELUDE SPORT COUPES THE DEFECT HASN'T RESULTED IN ANY ACCIDENTS OR INJURIES BUT ANALYSTS SAY IT MAY END UP COSTING HONDA 15 MILLION TO 20 MILLION AS THE AUTO MAKER NOTIFIES CUSTOMERS AND REPLACES DEFECTIVE PARTS THAT IS 20 MILLION THAT YOU COULD HAVE THROWN INTO THE LAUNCH OF THE NEW ACCORD THIS FALL SAID CHRISTOPHER CEDERGREN AN AUTO INDUSTRY ANALYST WITH AUTOPACIFIC GROUP INC THE DEFECT INVOLVES A FUEL FILLER PIPE THAT IS PRONE TO CORROSION UNDER CERTAIN CIRCUMSTANCES HONDA VEHICLES DRIVEN IN AREAS WHERE SALTS ARE USED TO TREAT ROADS DURING FALL AND WINTER MONTHS ARE SUSCEPTIBLE TO THE PROBLEM THE BIG RECALL AND THE EXPENSE IT REPRESENTS COMES AT A BAD TIME FOR HONDA THE YEN'S SURGING VALUE HAS FORCED THE COMPANY TO RAISE PRICES ON ITS US MODELS EVEN THOUGH ITS BREADANDBUTTER ACCORD IS LOSING GROUND ONCE THE US'S BESTSELLING VEHICLE ACCORD LOST THE TITLE LAST YEAR TO FORD MOTOR CO'S TAURUS THROUGH MAY SALES OF ACCORDS HAVE BEEN OFF 30 AND THE CAR IS NOW THE US'S SIXTHBESTSELLING PASSENGER CAR IN FEBRUARY HONDA ESTIMATED ITS PROFIT FOR THE YEAR ENDING MARCH 31 WOULD FINISH 31 SHY OF YEARAGO LEVELS A SPOKESMAN FOR THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION SAID THE AGENCY HAS RECEIVED COMPLAINTS OF FUEL LEAKING FROM RUSTEDOUT FUEL FILLER TUBES IN HONDA CARS DEALERS SAID THEY HAVE SEEN PROBLEMS WITH RUSTING FUEL FILLER PIPES IN CERTAIN HONDA CARS AND WERE MAKING REPAIRS EVEN BEFORE THE RECALL THE PIPES OF EARLY MODELS HAD SIGNIFICANT RUST AND MOST OF THE CARS HAD TO BE DONE SAID TIM FYFE OF GRAPPONE HONDA IN CONCORD NH ON THE MORE RECENT MODELS THE CARS WE HAVE HAD IN HAVEN'T HAD AS MUCH RUST A HONDA SPOKESMAN SAID THE COMPANY HAS BEEN CONTACTING CUSTOMERS INDIVIDUALLY AND INSTRUCTING THEM TO TAKE THEIR CARS TO NEARBY HONDA DEALERS HE SAID DEALERS WILL REPAIR THE FILLERPIPE DEFECT AT NO COST TO THE CUSTOMER 9306160115 930616 SENATE STRUGGLES TO FORM DEFICIT BILL BUT CLINTON SAVES FIGHT FOR CONFERENCE BY DAVID WESSEL AND JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON SAID HE DOESN'T EXPECT TO ENDORSE ALL THE CHANGES THAT THE SENATE MAKES TO HIS DEFICITREDUCTION PLAN BUT PROMISED TO FIGHT FOR HIS PRIORITIES WHEN THE BILL GOES TO A HOUSESENATE CONFERENCE IN AN EFFORT TO PIECE TOGETHER A BILL THE 11 DEMOCRATS ON THE SENATE FINANCE COMMITTEE MET UNTIL LATE LAST NIGHT AND TENTATIVELY AGREED TO CUT MEDICARE OVER FIVE YEARS BY 19 BILLION MORE THAN MR CLINTON'S PLAN WHICH WOULD REDUCE PROJECTED SPENDING BY MORE THAN 50 BILLION CHAIRMAN DANIEL MOYNIHAN D NY HAD INITIALLY SUGGESTED ADDITIONAL CUTS OF NEARLY TWICE THE 19 BILLION BUT SEN JAY ROCKEFELLER D W VA FOUGHT FOR THE LOWER FIGURE THE DEMOCRATS STILL HAVEN'T RESOLVED THE EXACT SIZE OF A TRANSPORTATION FUELS TAX INCREASE THAT WOULD HELP REPLACE MR CLINTON'S BROADBASED ENERGY TAX AND WILL MEET BEHIND CLOSED DOORS FOR A FIFTH DAY TODAY COMMITTEE MEMBERS HOPE TO COME TO AN AGREEMENT SO THEY CAN BEGIN VOTING ON THE BILL TOMORROW AND MEET THEIR FRIDAY DEADLINE FOR COMPLETING ACTION MONTANA SEN MAX BAUCUS REFUSED TO BACK A 73CENTAGALLON INCREASE ON GASOLINE DIESEL AND OTHER FUELS THAT WAS PROPOSED BY SEN JOHN BREAUX D LA SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE SUGGESTED A FIVECENTAGALLON GAS TAX INCREASE YESTERDAY AT A MORNING MEETING OF FINANCE COMMITTEE DEMOCRATS BUT SEN BAUCUS COUNTERED WITH A TWOCENT INCREASE DRAWING GUFFAWS FROM HIS PEERS AT ONE POINT AN ANGRY SEN MITCHELL TOLD SEN BAUCUS THAT HIS OBSTINACY WAS THREATENING THE CLINTON PRESIDENCY ACCORDING TO THOSE WHO WERE PRESENT AT THE MEETING LAST NIGHT SEN BAUCUS WAS INSISTING HE COULD AGREE TO NO MORE THAN 3 1/2 CENTS THE COMPROMISE THAT SENS MITCHELL AND MOYNIHAN ARE TRYING TO SHAPE IN THE TORTUOUS NEGOTIATIONS ALSO WOULD SHRINK MR CLINTON'S PROPOSED TAX INCENTIVES FOR BUSINESS LIMIT TAX CHANGES THAT WERE AIMED AT AIDING THE WORKING POOR AND ENCOURAGING INVESTMENT IN CITIES AND SQUEEZE MEDICARE FAR MORE THAN THE PRESIDENT PROPOSED ALL IN AN EFFORT TO REPLACE THE NEARLY 72 BILLION IN REVENUES THAT MR CLINTON'S NOWDEFUNCT ENERGY TAX WOULD HAVE RAISED THE CLINTONBACKED ENERGY TAX THAT PASSED THE HOUSE WOULD AMOUNT TO ABOUT 75 CENTS A GALLON ON GASOLINE AND DIESEL FUEL BUT WOULD ALSO APPLY TO OTHER KINDS OF ENERGY USE AT A PRESS CONFERENCE YESTERDAY MR CLINTON MADE CLEAR THAT HE JUST WANTS THE COMMITTEE TO GET A BILL TO THE SENATE FLOOR TO CONTINUE ITS LEGISLATIVE PROGRESS THE FULL SENATE COULD TAKE UP A BILL NEXT WEEK BUT HE ALSO TRIED TO REASSURE HIS ALLIES IN THE HOUSE WHO HAVE BEEN COMPLAINING THAT THEY BACKED HIS PROPOSAL INCLUDING THE UNPOPULAR ENERGY TAX ONLY TO SEE HIM ABANDON IT IN THE SENATE THE SENATE FINANCE COMMITTEE HAS SOME TOUGH DECISIONS TO MAKE I DON'T EXPECT TO AGREE WITH THEM ALL THE PRESIDENT SAID THE REAL TEST WILL BE WHAT HAPPENS IN THE HOUSESENATE CONFERENCE DESPITE THEIR HANDSOFF APPROACH IN PUBLIC TREASURY SECRETARY LLOYD BENTSEN AND OTHER ADMINISTRATION OFFICIALS HAVE BEEN CONSULTING CLOSELY WITH SENS MOYNIHAN AND MITCHELL THE LEADERS DIDN'T WANT TO CONVENE A PUBLIC MEETING WITH COMMITTEE REPUBLICANS UNTIL THE DEMOCRATS WERE AGREED ALL NINE REPUBLICANS ARE EXPECTED TO VOTE AGAINST ANY DEMOCRATIC TAX BILL AND THEY HAVEN'T PARTICIPATED IN THE PRIVATE DELIBERATIONS TO DATE AT HIS NEWS CONFERENCE MR CLINTON TICKED OFF THE PRINCIPLES HE HAS SET FOR THE DEFICITREDUCTION PLAN BUT OMITTED ONE ELEMENT THAT HAS BEEN ON PAST LISTS THE BROADBASED ENERGY TAX THE WHITE HOUSE SAID THE OMISSION WAS INADVERTENT IN THE EFFORT TO COMPENSATE FOR THE DISCARDED ENERGY TAX FEDERAL HEALTH SPENDING HAS BEEN A PRIME TARGET FOR CUTS THE HOUSE BILL IN LINE WITH MR CLINTON'S PROPOSAL WOULD TAKE ABOUT 50 BILLION OUT OF MEDICARE HEALTH PROGRAM FOR THE ELDERLY OVER THE NEXT FIVE YEARS THE SENATE COMMITTEE UNTIL YESTERDAY HAD BEEN TALKING ABOUT ANOTHER 21 BILLION TO 35 BILLION IN SAVINGS BUT SENATE LIBERALS WHO AREN'T ON THE COMMITTEE LED BY IOWA DEMOCRAT TOM HARKIN ARE OBJECTING AND IT IS UNLIKELY THAT ALL OF THEM WILL BE MOLLIFIED BY THE 19 BILLION FIGURE THAT SEN ROCKEFELLER HAS NEGOTIATED ANYTHING OVER 10 BILLION MORE WOULD BE AN UNFAIR CUT SEN HARKIN SAID SEN ROCKEFELLER DID SUCCEED IN SEEING THAT NO ADDITIONAL CUTS WOULD BE SQUEEZED FROM THE MEDICAID HEALTHCARE PROGRAM FOR THE POOR ANOTHER COMMITTEE MEMBER SEN BILL BRADLEY D NJ IS TARGETING THE CLINTONBACKED TAX BREAKS FOR BUSINESS THAT THE HOUSE APPROVED MR CLINTON YESTERDAY DEFENDED TWO BUSINESS TAX BREAKS THAT PASSED THE HOUSE BUT ARE IN TROUBLE IN THE SENATE HE URGED THE SENATE TO ACCEPT HOUSEPASSED CHANGES IN WHAT IS KNOWN AS THE CORPORATE ALTERNATIVE MINIMUM TAX BECAUSE HE SAID IT IS DISCOURAGING INVESTMENT IN PLANTS AND EQUIPMENT THE PRESIDENT ALSO DEFENDED A HOUSEPASSED PLAN TO INCREASE TO 25000 FROM 10000 THE AMOUNT THAT SMALL BUSINESSES CAN WRITE OFF FOR PURCHASES OF EQUIPMENT I THINK IT'S A JOB GENERATOR HE SAID ALSO YESTERDAY THE FINANCE COMMITTEE DEMOCRATS EXAMINED PROPOSALS TO SOFTEN THE RESTRICTIONS THAT THE PRESIDENT IS SEEKING ON TAX BREAKS FOR MANUFACTURERS WITH PLANTS IN PUERTO RICO CHAIRMAN MOYNIHAN WHOSE CONSTITUENTS INCLUDE PUERTO RICAN NATIVES AND BUSINESSES THAT OPERATE IN PUERTO RICO HAS BEEN UNCOMFORTABLE WITH THE PRESIDENT'S PROPOSAL IT DEFINITELY IS GOING TO BE CUT SAID SEN BRADLEY WHOSE CONSTITUENTS INCLUDE NEW JERSEY PHARMACEUTICAL COMPANIES THAT OPPOSE THE PRESIDENT'S PROVISION THE SENATE BILL IS LIKELY TO DROP MR CLINTON'S PROPOSAL TO CREATE ENPOWERMENT ZONES TO DRAW INVESTMENT TO DEPRESSED URBAN AND RURAL AREAS MR CLINTON SAID YESTERDAY HE'LL FIGHT FOR THAT PROVISION IN THE HOUSESENATE CONFERENCE HE ALSO PROMISED TO DEFEND HIS PROPOSAL TO ENLARGE THE EARNEDINCOME TAX CREDIT FOR THE WORKING POOR THE SENATE COMMITTEE IS LIKELY TO ENDORSE A SMALLER INCREASE THAN THE PRESIDENT PROPOSED 9306160113 930616 IRS ASKS CONGRESS FOR FLEXIBLE CLOUT ON TAX EXEMPTION BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE TOLD CONGRESS IT NEEDS MORE FLEXIBLE PENALTIES TO FAIRLY ENFORCE THE TAX LAWS GOVERNING TAXEXEMPT CHARITABLE ORGANIZATIONS TESTIFYING BEFORE THE HOUSE WAYS AND MEANS OVERSIGHT SUBCOMMITTEE YESTERDAY IRS COMMISSIONER MARGARET RICHARDSON SAID THE CURRENT PENALTY REVOCATION OF TAXEXEMPT STATUS IS OFTEN TOO SEVERE IN LIGHT OF THE VIOLATION THE AGENCY GENERALLY IS LEFT WITH THE CHOICE OF EITHER REVOKING AN ORGANIZATION'S TAXEXEMPT STATUS OR TAKING NO ENFORCEMENT ACTION EVEN IF AN ORGANIZATION'S TAXEXEMPT STATUS IS REVOKED SHE SAID THE INDIVIDUALS WHO CAUSED THE PROBLEM OFTEN ARE ABLE TO RETAIN THEIR FINANCIAL GAINS SPECIFIC ABUSES CITED BY THE IRS CHIEF INCLUDED A CHARITY'S PURCHASE OF A 42FOOT BOAT FOR AN INSIDER AND THE SALE OF A NONPROFIT HOSPITAL BY ITS 12MEMBER BOARD OF DIRECTORS TO A NEWLY FORMED CORPORATION OPERATED BY THE BOARD ITSELF AT BELOW MARKET VALUE THE BOARD LATER RESOLD THE INSTITUTION WITH EACH DIRECTOR RECEIVING MORE THAN 23 MILLION AS THEIR SHARE OF THE PROCEEDS BOTH THE ORGANIZATIONS INVOLVED IN THESE CASES LOST THEIR TAXEXEMPT STATUS RESERVING THE RIGHT TO MAKE SPECIFIC RECOMMENDATIONS LATER COMMISSIONER RICHARDSON URGED CONGRESS TO GIVE THE IRS THE AUTHORITY TO FIT THE PENALTIES TO THE VIOLATIONS AND TO PUBLICLY DISCLOSE ITS ENFORCEMENT ACTIONS SHE SAID RECENT EXAMINATIONS OF LARGE PUBLIC CHARITIES HAVE TURNED UP PATTERNS OF ABUSE AND SHE CITED POTENTIALLY EXCESSIVE COMPENSATION AS A MAJOR CONCERN SHE ALSO SAID THE EXAMINATIONS ARE TURNING UP SIGNIFICANT INCOMETAX ISSUES WITH RESPECT TO RELATED INDIVIDUALS FAILING TO REPORT COMPENSATION REP JJ PICKLE CHAIRMAN OF THE HOUSE SUBCOMMITTEE THAT HELD YESTERDAY'S HEARING SAID PUBLIC CHARITIES EXEMPT FROM FEDERAL TAXATION UNDER SECTION 501C3 OF THE TAX CODE ANNUALLY GENERATE 500 BILLION IN REVENUES HAVE ASSETS OF ABOUT 1 TRILLION EMPLOY SEVEN MILLION PEOPLE AND IN RECENT YEARS HAVE BEEN THE FASTESTGROWING SECTOR OF THE US ECONOMY THE TEXAS DEMOCRAT ONE OF THE IRS'S LEADING OVERSEERS ON CAPITOL HILL ALSO SIGNALED THAT THE IRS'S REQUEST PROBABLY WILL GET A FAVORABLE RECEPTION IN CASES OF INUREMENT OR ABUSE HE SAID I BELIEVE THE IRS OUGHT TO BE ABLE TO IMPOSE A PENALTY OTHER THAN REVOCATION WHICH NO ONE WANTS IN ORDER TO COMBAT THE VIOLATIONS THAT ARE OCCURRING HE ADDED THAT IRS OFFICIALS NEED TO BE ABLE TO CORRAL THE BAD GUYS BEFORE THEY POISON THE WELL AT THE HEARING IRS OFFICIALS TESTIFIED THAT MOST OF THE PROBLEMS THAT COME TO THEIR ATTENTION INVOLVE HEALTHCARE ORGANIZATIONS INCLUDING HOPSITALS AND MEDIA EVANGELISTS COMMISSIONER RICHARDSON SAID THE IRS CURRENTLY IS EXAMINING 21 MEDIA EVANGELIST CASES 21 HOSPITAL CASES AND 10 UNIVERSITY CASES TO GAIN TAXEXEMPT STATUS UNDER SECTION 501C3 AN ORGANIZATION MUST ENSURE THAT ITS NET EARNINGS SERVE PUBLIC INTERESTS RATHER THAN BENEFIT PRIVATE SHAREHOLDERS OR INDIVIDUALS THESE BASIC RULES HAVE BEEN COMPLICATED BY COMPLEX NEW STRUCTURES EMERGING INCLUDING TAXABLE SUBSIDIARIES AND JOINT VENTURES 9306160112 930616 INTERNATIONAL JAPAN'S GLOBAL TRADE SURPLUS EASES BUT SOME SAY MAY'S FALL WON'T CONTINUE BY MICHAEL WILLIAMS STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO FOR THE FIRST TIME IN 29 MONTHS JAPAN'S GLOBAL TRADE SURPLUS EDGED DOWN IN MAY BUT MANY OBSERVERS SAID THE LATEST FIGURES ARE PROBABLY JUST A BLIP AND THE COUNTRY'S TRADE SURPLUS WILL CONTINUE TO GROW THIS YEAR JAPAN'S MERCHANDISE TRADE SURPLUS FELL 01 IN MAY FROM A YEAR EARLIER TO 772 BILLION JAPAN'S SURPLUS WITH THE US FELL 21 TO 277 BILLION TRIMMED BY A 13 RISE IN US EXPORTS TO JAPAN NOTABLY OF SEMICONDUCTORS AND AIRCRAFT THE LATEST FIGURES ARE UNLIKELY TO MOLLIFY TRADE HAWKS IN WASHINGTON MANY ECONOMISTS IN TOKYO SAID THE CHANGE RESULTED LARGELY FROM SPECIAL FACTORS NOT A FUNDAMENTAL SHIFT IN TRADE FLOWS JAPAN RAN A 4367 BILLION SURPLUS WITH THE US LAST YEAR ACCORDING TO JAPANESE FIGURES THE CLINTON ADMINISTRATION HAS BEEN ENCOURAGING A STRONGER YEN IN HOPES THAT IT WILL CURB JAPANESE EXPORTS AND PROMOTE US SALES TO JAPAN A STRONGER YEN MAKES JAPANESE GOODS MORE EXPENSIVE OVERSEAS AND US GOODS CHEAPER IN JAPAN TUESDAY IN FACT THE YEN CONTINUED TO SOAR AGAINST THE DOLLAR CLOSING AT 10503 YEN TO THE DOLLAR IN TOKYO UP 16 SO FAR THIS YEAR AND CLOSER TO THE SYMBOLIC PARITY LEVEL OF 100 YEN TO THE DOLLAR STILL MANY ECONOMISTS SAY THE STRONGER YEN WASN'T THE CAUSE OF THE DECLINE IN THE MAY SURPLUS AND THAT IT WILL TAKE MONTHS FOR THE LATEST RUNUP IN THE YEN TO AFFECT JAPAN'S TRADE BALANCE IN THE SHORT TERM A STRONGER YEN ACTUALLY INFLATES THE DOLLAR VALUE OF JAPAN'S TRADE SURPLUS THE SOCALLED JCURVE EFFECT AN ECONOMIST WITH THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY SAID HE AND OTHER TOKYO TRADE OFFICIALS BELIEVE THE JCURVE EFFECT WILL CONTINUE TO SWELL AMERICA'S TRADE DEFICIT THE FINANCE MINISTRY REPORTED THAT JAPANESE EXPORTS ROSE IN MAY 56 TO 2685 BILLION WHILE IMPORTS GREW A BIGGER 82 TO 1912 BILLION THE MINISTRY ATTRIBUTED THE RELATIVELY SMALLER GROWTH IN EXPORTS CHIEFLY TO AN EXTRA HOLIDAY THIS MAY AND TO LONGER VACATION BREAKS BY JAPANESE MANUFACTURERS BUSINESS SHUTDOWNS AFFECT EXPORT VOLUME MORE IMMEDIATELY THAN IMPORT VOLUME HE SAID THE SURPLUS WITH EUROPE SHRANK 27 TO 195 BILLION MAINLY BECAUSE OF A SHARP DROP IN EUROPEAN IMPORTS OF JAPANESE CARS AND OTHER GOODS EXPORTS TO ASIA REMAINED ROBUST BOOSTING JAPAN'S SURPLUS WITH THE REGION 30 TO 405 BILLION PETER MORGAN ECONOMIST AT MERRILL LYNCH JAPAN INC ATTRIBUTED THE SLIGHT NARROWING IN THE OVERALL TRADE SURPLUS MAINLY TO THE WEAK EXPORTS TO EUROPE AND TO AN UNUSUALLY SHARP DROP IN IMPORTS IN MAY 1992 WHICH MADE THIS PAST MAY'S IMPORTS SEEM RELATIVELY STRONG MR MORGAN AND SEVERAL OTHER ECONOMISTS NOTED THAT IN VOLUME TERMS OVERALL JAPANESE EXPORTS HAVE REMAINED FIRM IN THE PAST FEW MONTHS THIS WOULD SUGGEST THAT THE STRONGER YEN HASN'T HURT THE APPETITE FOR JAPANESE GOODS ABROAD EXPORTS FELL 17 ON A VOLUME BASIS IN MAY BUT THE AVERAGE FOR THE PAST THREE MONTHS CONSIDERED A BETTER BAROMETER SHOWS EXPORTS ARE UP 35 MANY MAJOR JAPANESE EXPORTERS MEANWHILE SAY THE STRONG YEN IS BOUND TO HURT JAPANESE SALES OVERSEAS I THINK THE REVALUATION OF THE YEN WILL CONTRIBUTE TO A REDUCTION OF AUTO EXPORTS FROM JAPAN A SPOKESMAN FOR NISSAN MOTOR CO SAID AT THE CURRENT LEVEL IT'S NOT PROFITABLE TO EXPORT FROM JAPAN IT'S BETTER TO DO LOCAL PRODUCTION JAPAN'S TOTAL AUTO EXPORTS ROSE 04 IN VALUE IN MAY BUT FELL 107 IN VOLUME TERMS A CHANGE THE GOVERNMENT ATTRIBUTED TO INCREASED JAPANESE PRODUCTION OVERSEAS AND THE STRONGER YEN JAPANESE EXPORTERS OF AUTOS AND ELECTRONICS HAVE CITED THE STRONGER YEN AS A BIG REASON FOR THEIR WEAKER EARNINGS IN THE YEAR ENDED MARCH 31 WHEN THE DOLLAR AND OTHER FOREIGN CURRENCIES FALL AGAINST THE YEN JAPANESE FIRMS' OVERSEAS SALES ARE WORTH LESS IN YEN TERMS RAISING PRICES ABROAD TO COMPENSATE HOWEVER IS HARD TO DO THESE DAYS US CAR COMPANIES ARE NARROWING THEIR QUALITY GAP WITH THE JAPANESE AND ALREADY PRICE MANY OF THEIR VEHICLES LOWER THAN JAPANESE MODELS 9306160111 930616 NOTABLE & QUOTABLE FORBES EDITOR JAMES MICHAELS WRITING IN THE JUNE 21 ISSUE OF NATIONAL REVIEW LIBERAL ENFORCERS OF COMMUNITY STANDARDS HAVE MADE THE AMERICAN NEWSPAPER A MIRROR OF THEIR OWN BELIEFS PREJUDICES AND ASPIRATIONS RATHER THAN THOSE OF POTENTIAL READERS THEY FILL THE PAPERS WITH ARTICLES ABOUT RACISM SEXISM HOMOPHOBIA AND THE PLIGHT OF THE POOR AND THE HOMELESS FAIR ENOUGH BUT HOW OFTEN DO THEY DELVE INTO THOSE THINGS THAT REALLY TOUCH THE LIVES OF THE GREAT MIDDLE CLASS THAT IS THEIR AUDIENCE NOT MUCH 9306160110 930616 TECHNOLOGY & HEALTH AMA BARS BIAS AGAINST GAY LESBIAN DOCTORS BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE AMERICAN MEDICAL ASSOCIATION AFTER FOUR YEARS OF DEBATE AMENDED ITS BYLAWS TO BAR DISCRIMINATION AGAINST DOCTORS ON THE BASIS OF SEXUAL ORIENTATION THE ACTION BY THE AMA'S HOUSE OF DELEGATES WAS A VICTORY FOR GROUPS SPEAKING ON BEHALF OF GAY AND LESBIAN DOCTORS IT IS A SMALLER TRIUMPH FOR THE AMA'S LEADERSHIP WHICH HAS BEEN TRYING SINCE 1989 TO DEAL WITH SEXUALORIENTATION ISSUES IN A WAY THAT WOULD BE PALATABLE TO THE FULL SWEEP OF THE AMA'S MEMBERSHIP DOCTORS GROUPS FROM GEORGIA AND SOUTH CAROLINA SPOKE AGAINST THE CHANGE BUT THEY WERE HEAVILY OUTPOLLED IN A VOICE VOTE OF THE 435 DELEGATES TO THE AMA'S ANNUAL MEETING THE DELEGATES WHO REPRESENT EITHER STATE MEDICAL SOCIETIES OR PROFESSIONAL SPECIALTIES ARE THE AMA'S MAIN POLICYSETTING BODY SHORTLY BEFORE THE VOTE AMA PRESIDENT JOHN CLOWE URGED MEMBERS TO SUPPORT THE BYLAWS CHANGE SAYING ALL WE WANT IS TO PUT THIS ISSUE TO REST HE NOTED THAT SUCH ANTIDISCRIMINATION MEASURES HAVE BEEN ADOPTED BY MANY LARGE ORGANIZATIONS IN THE PAST FEW YEARS INCLUDING THE AMERICAN DENTAL ASSOCIATION AND AMERICAN TELEPHONE & TELEGRAPH CO THE AMA'S NEW ANTIBIAS POLICY APPLIES ONLY TO MEMBERSHIP IN THE DOCTORS ORGANIZATION ITSELF BEYOND THAT THOUGH THE VOTE HAS SYMBOLIC SIGNIFICANCE IN POSITIONING THE AMA AS AN OPPONENT OF DISCRIMINATION BASED ON SEXUAL ORIENTATION ON ANOTHER ISSUE HOWEVER DELEGATES DEFIED THE AMA LEADERSHIP BY VOTING TO SEEK REPEAL OF A MEDICALLAB SAFETY LAW THE FEDERAL CLINICAL LABORATORY IMPROVEMENT ACT OF 1988 WAS PASSED AFTER PUBLIC OUTCRY OVER SHODDY LAB WORK IN ANALYZING PAP TESTS FOR CERVICAL CANCER DOCTORS HAVE COMPLAINED HOWEVER THAT THE ACT HAS IMPOSED SO MUCH PAPERWORK ON THEM THAT IT'S IMPOSSIBLE TO RUN ROUTINE BLOOD AND URINE TESTS IN THEIR OFFICES THE AMA'S LEADERSHIP HAS FAVORED MODIFYING THE LABSAFETY ACT FIGURING THAT A PUSH FOR REPEAL IS LIKELY TO PLAY BADLY IN CONGRESS BUT WHILE AMA DELEGATES LAST YEAR AGREED TO ADOPT THAT MODERATE TACK THIS YEAR THEY WERE MORE STRIDENT TYPICAL AMONG THE OPPONENTS WAS GARY KRIEGER A SAN PEDRO CALIF PEDIATRICIAN WHO DENOUNCED THE LAW AS A GARGANTUANLY INAPPROPRIATE PIECE OF LEGISLATION IN A SPEECH SUNDAY TO THE AMA FIRST LADY HILLARY RODHAM CLINTON WHO IS HEADING UP THE WHITE HOUSE HEALTHCARE OVERHAUL EFFORT SAID SHE FAVORED CUTTING THE REGULATORY BURDEN OF THE LABSAFETY ACT THE AMA IS LIKELY TO FACE SIZABLE RESISTANCE FROM CONGRESS AND THE ADMINISTRATION HOWEVER IN A BID TO REPEAL THE ACT 9306160109 930616 PHILIPPINES TO SEEK EXTENSION MANILA THE PHILIPPINES WILL SEEK ANOTHER SIXMONTH EXTENSION FROM THE WORLD BANK TO COMPLY WITH THE BANK'S REQUIREMENTS FOR THE RELEASE OF 450 MILLION UNDER THE FINANCIAL SECTOR ADJUSTMENT LOAN ACCORDING TO OUTGOING CENTRAL BANK GOVERNOR JOSE CUISIA THE PHILIPPINES HAS UNTIL JUNE 30 TO COMPLY WITH THE REQUIREMENTS OF THE LOAN WHICH INCLUDE THE ESTABLISHMENT OF THE CENTRAL MONETARY AUTHORITY AND THE DRAWING UP OF A PLAN TO RESTRUCTURE SOME OF THE OLD CENTRAL BANK'S DEBTS 9306160108 930616 KEMPER CORP TAKES BROKERAGE UNIT OFF BLOCK BY JEFFREY TAYLOR AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO FINANCIALSERVICES COMPANY KEMPER CORP ACKNOWLEDGING THAT IT WAS UNABLE TO FIND A SUITABLE OFFER FOR ITS KEMPER SECURITIES BROKERAGE OPERATION TOOK THE UNDERACHIEVING UNIT OFF THE BLOCK THE OFFERS SIMPLY DIDN'T REFLECT THE VALUE INHERENT IN THIS COMPANY AND ITS LONGTERM PROSPECTS SAID STEPHEN B TIMBERS KEMPER CORP'S PRESIDENT AND CHIEF OPERATING OFFICER AS FAR AS WE'RE CONCERNED NOW THIS EPISODE IS OVER SALE RUMORS HAVE SWIRLED AT KEMPER SECURITIES SINCE SEPTEMBER WHEN MR TIMBERS WAS QUOTED AS SAYING HE PLANNED TO SELL OR CHANGE ANY UNDERPERFORMING KEMPER UNIT AND MENTIONED THE SECURITIES UNIT AS ONE SUCH OPERATION ON MAY 27 THE COMPANY DISCLOSED IT WAS REVIEWING OFFERS FOR THE UNIT AND ON MAY 28 MANY KEMPER EMPLOYEES INTERPRETED REMARKS OVER AN INTERNAL ADDRESS SYSTEM BY JAMES R BORIS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF KEMPER SECURITIES TO MEAN THAT A SALE WAS IMMINENT YESTERDAY HOWEVER KEMPER EXECUTIVES SAID THEY INTENDED TO RENEW THEIR COMMITMENT TO THE SECURITIES OPERATION WHICH WAS CREATED IN THE EARLY 1980S BY BUYING FIVE REGIONAL BROKERAGE FIRMS WE DECIDED THAT OUR BEST COURSE IS TO STAY IN THE BUSINESS DAVID B MATHIS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF KEMPER CORP SAID IN AN INTERVIEW THE ANNOUNCEMENT CAME AMID AGGRESSIVE EFFORTS BY OTHER SECURITIES FIRMS TO LURE AWAY KEMPER'S TOPPRODUCING STOCKBROKERS MORE THAN A DOZEN BROKERS HAVE LEFT THE FIRM DURING THE PAST TWO MONTHS INCLUDING FIVE BIGCOMMISSION SALESMEN FROM KEMPER'S SANTA CLARA AND PALM DESERT CALIF BRANCHES LAST WEEK CURRENT AND FORMER KEMPER EMPLOYEES SAID MR MATHIS ACKNOWLEDGED THE ANXIETY AND FRUSTRATION THAT SALE RUMORS HAD CREATED AMONG KEMPER EMPLOYEES AND STOCKBROKERS BUT SAID CONCERNS ABOUT DEFECTIONS DIDN'T HASTEN THE DECISION NOT TO SELL PART AND PARCEL OF THIS BUSINESS IS THAT BROKERS ARE SOLICITED BY OTHER BROKERAGE FIRMS REGULARLY MR MATHIS SAID I DON'T THINK THAT WE HAD MAJOR DEFECTIONS RELATED TO THIS PARTICULAR INSTANCE SINCE 1982 THE SECURITIES UNIT HAS HAD LOSSES TOTALING MORE THAN 200 MILLION MOREOVER KEMPER HAS BEEN HIT BY A SERIES OF MULTIMILLIONDOLLAR LEGAL JUDGMENTS AGAINST THE FIRMS IT BOUGHT LAST YEAR A HIGHLY PROFITABLE YEAR FOR THE SECURITIES INDUSTRY THE UNIT HAD A 384 MILLION LOSS THE FAILURE OF KEMPER TO SELL ITS BROKERAGE OPERATION UNDERSCORES THE DIFFICULTY OF PULLING OFF BIG MERGERS IN THE SECURITIES INDUSTRY ANALYSTS SAY DESPITE THE 115 BILLION MERGER OF SMITH BARNEY HARRIS UPHAM & CO AND BROKERAGE OPERATIONS OF SHEARSON LEHMAN BROTHERS INC SEVERAL OTHER POTENTIAL BROKERAGE MERGERS HAVE FALLEN APART DURING THE PAST YEAR THESE INCLUDE POTENTIAL COMBINATIONS OF SMITH BARNEY AND KIDDER PEABODY GROUP INC AS WELL AS RAYMOND JAMES FINANCIAL INC AND STIFEL NICOLAUS & CO IF YOU'RE LOOKING TO SELL AN AVERAGE BROKERAGE PROPERTY OR EVEN DAMAGED GOODS THEN IT'S MUCH MORE DIFFICULT TO GET THE DEAL DONE SAYS JOHN KEEFE OF KEEFE WORLDWIDE INFORMATION SERVICES INC AMONG THE BIG BROKERAGE FIRMS THAT WERE IN DISCUSSIONS WITH KEMPER IN RECENT WEEKS WERE SEARS ROEBUCK & CO'S DEAN WITTER DISCOVER & CO UNIT AND PAINEWEBBER GROUP INC PEOPLE FAMILIAR WITH THE TALKS SAID DEAN WITTER AND PAINEWEBBER HAVE BEEN HUNTING FOR MORE STOCKBROKERS TO HELP GENERATE A STEADY STREAM OF REVENUE SPOKESMEN FOR DEAN WITTER AND PAINEWEBBER DECLINED TO COMMENT BUT PEOPLE FAMILIAR WITH BOTH FIRMS SAID THE DISCUSSIONS WHICH GO BACK SEVERAL MONTHS NEVER PROGRESSED TO A SERIOUS STAGE KEMPER APPARENTLY HAD ASKED FOR AT LEAST 200 MILLION FOR ITS BROKERAGE OPERATIONS WHICH INCLUDE ABOUT 1510 BROKERS AND 166 BRANCHES ANALYSTS AND WALL STREET EXECUTIVES SAID WITH KEMPER'S EQUITY CAPITAL OF ABOUT 155 MILLION THE POTENTIAL SELLING PRICE WAS ABOUT 13 TIMES ITS BOOK VALUE BROKERAGE FIRMS CURRENTLY ARE TRADING AT ABOUT 15 TIMES BOOK VALUE THEY SIMPLY COULDN'T GET WHAT THEY WANTED FOR IT SAID A WALL STREET EXECUTIVE INVOLVED IN DISCUSSIONS WITH KEMPER OVER A POSSIBLE SALE BUT SEVERAL OTHER FACTORS ASIDE FROM PRICE COULD HAVE HELPED DERAIL ANY CHANCE FOR KEMPER TO SELL ITS BROKERAGE OPERATIONS ANALYSTS AND BROKERAGE EXECUTIVES SAID AMONG THEM KEMPER CORP IS BELIEVED TO HAVE WANTED ANY BUYER TO AGREE TO SELL KEMPER FUNDS AND OTHER PRODUCTS AS PART OF THE TRANSACTION THIS WAS UNPALATABLE TO SEVERAL BROKERAGE FIRMS THEY ARE BUSY TRYING TO SELL THEIR OWN MUTUAL FUNDS AND OTHER SOCALLED PROPRIETARY PRODUCTS IN A BID TO GENERATE A STEADY LEVEL OF RECURRING MANAGEMENT FEES AND SEVERAL POTENTIAL BIDDERS WERE UNWILLING TO ACCEPT ANY LIABILITY FOR LAWSUITS AND LEGAL JUDGMENTS FACING THE KEMPER SECURITIES OPERATION ANALYSTS SAID IN MAY 1990 A FORMER EXECUTIVE AT ONE OF THE FIVE FIRMS KEMPER BOUGHT PRESCOTT BALL & TURBEN WON A 382 MILLION ARBITRATION AWARD IN A CONTRACT DISPUTE IN APRIL 1992 A HOUSTON FEDERALCOURT JUDGE ORDERED PRESCOTT BALL TO PAY A JURY AWARD OF 1374 MILLION FOR FRAUD AND RACKETEERING VIOLATIONS STEMMING FROM ALLEGEDLY PREARRANGED GOVERNMENT SECURITIES TRADES TWO WEEKS AGO A FEDERAL JURY IN PORTLAND ORE FOUND KEMPER SECURITIES LIABLE FOR AS MUCH AS 53 MILLION TO INVESTORS IN A PLANTBULB BUSINESS WHOSE STOCK ONE OF ITS FIRMS UNDERWROTE KEMPER PAID THE ARBITRATION AWARD BUT IS CONTESTING THE TWO LEGAL JUDGMENTS WHAT ALSO MAY HAVE HAUNTED SOME POTENTIAL BIDDERS FOR KEMPER SECURITIES WAS SHEARSON LEHMAN'S 964 MILLION PURCHASE OF EF HUTTON & CO IN LATE 1987 WALL STREET EXECUTIVES SAID THAT MERGER VEXED SHEARSON FOR SEVERAL YEARS BECAUSE THE AMERICAN EXPRESS CO UNIT WAS FORCED TO PAY LEGAL JUDGMENTS INVOLVING HUTTON TRANSACTIONS AND ANALYSTS SAID SHEARSON OVERPAID FOR THE FIRM IN THE FIRST PLACE EVERYBODY HAD HUTTON IN MIND SAID A WALL STREET EXECUTIVE FAMILIAR WITH THE KEMPER SALE TALKS PEOPLE REMEMBERED THAT AND JUST HOW BADLY IT WORKED AND THERE WAS AN UNWILLINGNESS TO COMMIT THE BIG NUMBERS BECAUSE OF IT AS PART OF ITS RENEWED COMMITMENT TO THE BROKERAGE OPERATION KEMPER EXECUTIVES SAID THEY WOULD DEVELOP A PROGRAM UNDER WHICH KEMPER SECURITIES EMPLOYEES WILL BE OFFERED THE CHANCE FOR EQUITY PARTICIPATION IN THEIR UNIT EMPLOYEES RATTLED BY SALE RUMORS MAY BE TOUGH TO SELL ON THIS PROGRAM SOME ANALYSTS SUGGEST THE MORE YOU HOLD DISCUSSIONS AND NOTHING IS DONE THE MORE QUESTIONS IT RAISES ABOUT YOUR CREDIBILITY SAID PERRIN LONG DIRECTOR OF EQUITY RESEARCH AT FIRST OF MICHIGAN CORP NOW THE BROKERS ARE WONDERING HOW MANAGEMENT IS REALLY LOOKING AT THEM MR MATHIS CHAIRMAN OF KEMPER CORP SAID THE PARENT COMPANY IS COMMITTED TO KEMPER SECURITIES ITS MANAGEMENT TEAM AND THEIR BUSINESS PLANS I HAVE EXPRESSED SYMPATHY FOR THE FRUSTRATIONS OF PEOPLE IN THE BROKERAGE UNIT AND I MEANT IT KEMPER SECURITIES POSTED A 14 MILLION PROFIT FOR THE FIRST QUARTER COMPARED WITH A 7 MILLION LOSS A YEAR EARLIER MR MATHIS SAID HE HOPES THE PROFITABILITY AT KEMPER SECURITIES WILL CONTINUE THIS YEAR I THINK THAT THE COMPANY FROM A PURE OPERATING POINT OF VIEW AND IN TERMS OF REVENUES HAS A GOOD OPPORTUNITY TO MAKE A PROFIT HE SAID THE LEGAL CASE THAT'S OUT THERE MAY SPOIL IT FROM A STANDPOINT OF RESULTS BUT THAT DEPENDS ON HOW THE BALANCE OF THE YEAR GOES IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE KEMPER WAS QUOTED AT 33375 A SHARE DOWN 125 CENTS 9306160107 930616 TUESDAY'S MARKETS STOCK BOND PRICES END DAY MIXED NEWS OF LOW INFLATION DOESN'T SPUR BUYING BY EQUITY INVESTORS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL AN UPBEAT REPORT ON INFLATION FAILED TO CHEER STOCKMARKET INVESTORS WHO LEFT PRICES MIXED BOND PRICES WERE MIXED AND THE DOLLAR ROSE THE DOW JONES INDUSTRIAL AVERAGE SANK 2269 POINTS TO 3492 STANDARD & POOR'S 500STOCK INDEX FELL 144 TO 44627 AND THE NASDAQ COMPOSITE INDEX INCHED UP 093 TO 69734 A WAVE OF SELLING HIT THE MARKET JUST BEFORE THE CLOSE KNOCKING ABOUT 15 POINTS OFF THE INDUSTRIAL AVERAGE IN THE FINAL MINUTES TOM GALLAGHER HEAD OF INSTITUTIONAL EQUITIES AT OPPENHEIMER & CO SAID A SLIDE WAS NEEDED TO BRING PRICES DOWN TO ATTRACTIVE LEVELS SOME OF THE FLUFF IS COMING OFF THE MARKET AND I WOULDN'T BE SURPRISED TO SEE A RALLY IN A DAY OR TWO HE SAID THE LABOR DEPARTMENT REPORTED CONSUMER PRICES ROSE JUST 01 IN MAY FAR BELOW THE 04 JUMP IN APRIL ECONOMISTS HAD PREDICTED AN INCREASE OF 02 FRIDAY THE GOVERNMENT REPORTED THAT PRODUCER PRICES IN MAY WERE UNCHANGED IT WAS THE BIGGEST NONSURPRISE OF THE MONTH SAID PETER CANELO CHIEF INVESTMENT STRATEGIST AT NATWEST SECURITIES EVERYONE KNEW THIS NUMBER WOULD BE GOOD AFTER THE REPORT ON PRODUCER PRICES SO THEY TOOK PROFITS ON IT BUT SOME INVESTORS REMAIN SKEPTICAL THAT INFLATION IS A DEAD ISSUE SAID LARRY RICE CHIEF MARKET STRATEGIST AT JOSEPHTHAL LYON & ROSS THERE'S A SCHOOL OF THOUGHT THAT SAYS THE UNDERLYING PRESSURE IS STILL THERE AND WILL RELEASE ITSELF IN COMING MONTHS HE SAID SO PEOPLE ARE SITTING ON THE FENCE LONGTERM BOND PRICES ROSE AFTER RELEASE OF THE CONSUMERPRICE DATA BUT THEN FELL BACK ON PROFITTAKING ANALYSTS SAID BOND PRICES SANK FURTHER IN THE AFTERNOON AFTER LAURA TYSON CHAIRWOMAN OF THE COUNCIL OF ECONOMIC ADVISERS WARNED AGAINST CUTTING THE BUDGET DEFICIT TOO FAST BOND TRADERS ALSO SOLD ON NEWS OF SOLID INCREASES IN AUTO SALES IN EARLY JUNE STOCK PRICES IN JAPAN PLUNGED 17 FRENCH STOCKS FELL 1 AND GERMAN SHARES LOST 05 WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 144 TO 10698 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2269 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 997 ISSUES ROSE AND 922 FELL BOND PRICES WERE MIXED THE TREASURY'S BENCHMARK 30YEAR ISSUE ENDED SLIGHTLY LOWER TO YIELD 682 BUT SHORTERTERM SECURITIES ROSE THE DOLLAR ROSE IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16455 MARKS AND 10575 YEN COMPARED WITH 16280 MARKS AND 10510 YEN MONDAY 9306160106 930616 ITT INSURANCE UNIT NEW YORK ITT HARTFORD INSURANCE A UNIT OF ITT CORP SAID ITS LIFE INSURANCE UNIT ACCEPTED TRANSFER OF 34 BILLION IN ACCOUNTS FROM FIDELITY BANKERS LIFE INSURANCE CO FIDELITY BANKERS WAS PLACED IN RECEIVERSHIP BY VIRGINIA REGULATORS IN MAY 1991 UNDER A REHABILITATION PLAN DEVISED BY VIRGINIA INSURANCE COMMISSIONER STEVEN F FOSTER AND ITT HARTFORD LIFE INSURANCE CO THOSE POLICYHOLDERS ACCEPTING THE PLAN WOULD HAVE 100 OF THEIR ACCOUNTS RESTORED ITT HARTFORD LIFE INSURANCE SAID ABOUT 75 OF THE FIDELITY BANKERS' 163000 POLICYHOLDERS ACCEPTED THE PLAN 9306160105 930616 HEALTH SICK OF SKYROCKETING COSTS PATIENTS DEFY DOCTORS AND SHOP FOR CHEAPER TREATMENT BY WENDY BOUNDS STAFF REPORTER OF THE WALL STREET JOURNAL AL IGLEHART FIGURES HIS DOCTORS PEGGED HIM FOR A FOOL THEY KNEW HIS HEART DISEASE WAS CONGENITAL WITHOUT MYSTERIOUS COMPLICATIONS STILL THEY SUGGESTED HE UNDERGO MORE TESTS EVEN REPEAT A 1200 ONE HE HAD ALREADY PASSED THANK YOU FOR THE ADVICE MR IGLEHART SAID BUT ABSOLUTELY NOT THE DOCTOR JUST ISN'T GOD AND SOMETIMES THEY'RE ON AUTOPILOT SAYS MR IGLEHART WHO IS 44 YEARS OLD AND LIVES ON LONG ISLAND NY THERE WAS NO REASON FOR ANY MORE TESTS THE BIGGEST THING YOU CAN DO IS TO BE INFORMED AS A CONSUMER AND ASK QUESTIONS MR IGLEHART IS AMONG A GROWING GROUP OF DEFIANT HEALTHCARE PATIENTS WHO ARE QUESTIONING THE COSTS OF MEDICAL PROCEDURES EVEN WHEN THEIR INSURANCE COMPANIES ARE PICKING UP THE BULK OF THE BILLS STILL CONSUMERS ARE MORE BENT ON SAVING THEIR PERSONAL POCKETBOOKS WHAT THEY CAN WITH PERSONAL HEALTHCARE EXPENDITURES PROJECTED AT AROUND 800 BILLION THIS YEAR UP MORE THAN 37 FROM 1990 BEFORE INFLATION THEY ARE SHOPPING AROUND FOR LOWPRICE DOCTORS SAYING NO TO RECOMMENDED TREATMENTS AND TESTS THEY DEEM TOO COSTLY AND SUBSTITUTING GENERIC BRANDS FOR EXPENSIVE PRESCRIPTIONS IN RESPONSE SOME HUMBLED DOCTORS ARE ACTING LIKE RETAILERS POSTING PRICE LISTS OF COMMON PROCEDURES IN THEIR RECEPTION AREA TRYING TO ENTICE THE NEW COSTCONSCIOUS CONSUMER MY PARENTS ALWAYS SAID THE DOCTOR IS THE LIFELINE OF THE FAMILY DON'T ASK ABOUT PRICES IT WAS A TABOO THING TO DO SAYS RON POLLACK EXECUTIVE DIRECTOR OF FAMILIES USA A WASHINGTON DC HEALTHCARE CONSUMERADVOCACY GROUP THAT HAS CHANGED IN LARGE PART BECAUSE OF THE SLUGGISH ECONOMY MEDIA COVERAGE OF THE HEALTHCARE CRISIS AND CONCERNS ABOUT SPIRALING PRICES ASKED TO CITE THE BIGGEST PROBLEM WITH US HEALTH CARE TODAY 42 OF PEOPLE NAMED COST AS THE CULPRIT IN A 1991 GALLUP POLL SURVEY SIDNEY WOLFE DIRECTOR OF PUBLIC CITIZEN'S HEALTH RESEARCH GROUP SAYS AMERICANS HAVE BECOME FRANTIC ABOUT PRICES AND HAVE RESOLVED THAT THEY CAN DO SOMETHING ABOUT IT IN THE PAST FEW YEARS WE'VE SEEN A CULTURE OF PEOPLE MOVING INTO A FRENZY OVER COST AND ACCEPTING THE POSSIBILITY THAT THE HEALTHCARE SYSTEM CAN HURT YOU HE SAYS SOME CONSUMERS ARE EVEN WRITING THEIR INSURANCE COMPANIES TO TIP THEM OFF TO OVERCHARGES BY FAMILY DOCTORS FOR MANY AMERICANS IT BOILS DOWN TO THE ISSUE OF TRUST CONSUMERS NO LONGER PERCEIVE THEIR DOCTORS IN NORMAN ROCKWELL TERMS I AUTOMATICALLY ASSUME THAT THE DOCTORS ARE HERE TO RIP US OFF AND I DON'T KNOW WHERE THAT COMES FROM OR IF IT'S FAIR SAYS MELISSA SANDS A 43YEAROLD NEW YORK FREELANCE WRITER PERHAPS IT'S AN ANTIPROFESSIONAL FEVER SWEEPING THE NATION BUT PEOPLE JUST DON'T TRUST DOCTORS LIKE THEY USED TO CONSIDER JERRY THORNTON OF MISHAWAKA IND A 62YEAROLD STROKE SURVIVOR THREE YEARS AGO WHEN HE FIRST ENTERED THE HOSPITAL MR THORNTON WAS UNCONCERNED ABOUT THE HIGH COSTS HIS INSURANCE COMPANY WAS SWALLOWING BUT HIS APATHY AND TOLERANCE FOR EXPENSIVE PROCEDURES DIDN'T LAST LONG SIX MONTHS INTO REHABILITATION HE REJECTED HIS DOCTOR'S RECOMMENDATION FOR AN EXPENSIVE CUSTOMBUILT LEG BRACE EVEN THOUGH HIS GROUP INSURANCE WOULD HAVE FOOTED THE BILL WILL IT MAKE ME WALK ANY BETTER THAN A GENERIC ONE HE RECALLS ASKING HIS DOCTOR HIS DOCTOR'S ANSWER HE SAYS WELL NOT REALLY' MR THORNTON'S REPLY TO THAT THEN I'LL MAKE DUE WITH AN OFFTHESHELF BRAND AND THE 200 SAVINGS LOUIS ULLMAN A 67YEAROLD RETIRED AEROSPACE ENGINEER IN ENIGMA GA NO LONGER ACTS SUBMISSIVE WITH HIS PHYSICIANS EITHER HE SUFFERS FROM ARTHRITIS SO HIS DOCTOR PRESCRIBES AN ANTIINFLAMMATORY DRUG THAT WOULD COST 144 A MONTH HE TAKES ASPIRIN INSTEAD IT COSTS 7 A MONTH AND KILLS THE ACHE WITHOUT INFLICTING THE JOINT PAINS THAT HE SAYS ARE A SIDE EFFECT OF THE PRESCRIPTION DRUG HE HAS NO QUALMS ABOUT BUCKING THE DOCTOR'S ORDERS EVEN THOUGH HE IS SECURELY COVERED UNDER MEDICARE AND SUPPLEMENTAL PRIVATE INSURANCE PROVIDED THROUGH HIS RETIREMENT BENEFITS DON'T GET ME WRONG I LIKE DOCTORS MR ULLMAN SAYS BUT WE ALL NEED TO RELY MORE ON OURSELVES AND OUR KNOWLEDGE MY PHILOSOPHY IS THAT I'M PAYING THE DOCTOR TO BE AN EXPERT AND IF I DON'T AT LEAST LISTEN I'M WASTING MY MONEY AND TIME BUT I HAVE NO PROBLEM ASKING QUESTIONS AND DECIDING MYSELF WHAT TO DO WITH THE RESULTS THERE ARE TRADEOFFS FRUGAL PATIENTS CAN RISK GETTING INFERIOR TREATMENT WHEN THEY SETTLE FOR LESS THAN THE BEST SAYS GEORGE MOEHRLE WHOSE SMALL BUSINESS IN FREDERICK MD PROVIDES HEALTH CARE FOR SOME 70 EMPLOYEES WHEN YOUR CHILD IS SICK YOU DON'T LOOK FOR A CATALOG OF PRICES YOU LOOK TO GET THEM THE BEST POSSIBLE HELP AND FOR THEIR THRIFTINESS PATIENTS SOMETIMES MUST FORGO A LONGTERM RELATIONSHIP WITH ONE PHYSICIAN AND THE CONTINUITY OF CARE ACCOMPANYING IT EVER SINCE A DOCTOR RECOMMENDED A COSTLY HEART TEST FOR HER STOMACH COMPLICATIONS A TEST HER CORPORATE INSURANCE WOULD HAVE COVERED JANE COOKSON OF PITTSBURGH HAS SHOPPED AROUND FOR SECOND AND THIRD OPINIONS AND NEW DOCTORS MS COOKSON A PERSONALFINANCE EXECUTIVE HAS CHANGED PHYSICIANS THREE TIMES IN RECENT YEARS DISILLUSIONED ABOUT RECOMMENDATIONS AND PRICES OF COURSE WHAT WE'RE ALL LOOKING FOR IS A DOCTOR TO STAY WITH FOR YEARS AND YEARS SHE SAYS BUT SHE BELIEVES THE HEALTHCARE SAVINGS ARE MORE IMPORTANT SHE IS STILL KICKING HERSELF FOR NOT ALERTING HER INSURANCE COMPANY ABOUT HER FOOT DOCTOR'S IMPROPER BILLING FOR A VERY SIMPLE PROCEDURE THAT SHE SAYS HE WRONGLY DEEMED SURGERY FAMILIES USA'S MR POLLACK SAYS PHYSICIANS OFTEN CHARGE DEEPPOCKETED INSURANCE COMPANIES MORE TO MAKE UP FOR PATIENTS AND PROCEDURES COVERED BY LESSGENEROUS GOVERNMENT PROGRAMS THAT IS WHY HE ADVOCATES PRICE LISTS PINPOINTING EXACTLY HOW MUCH A PARTICULAR TREATMENT WILL COST ANYONE ANYTIME PHYSICIANS WHO LOSE MONEY ON ONE PATIENT WHO IS UNINSURED OR ON MEDICAID OR MEDICARE CAN TURN AROUND AND MAKE MONEY OFF THE ONE WHO IS PRIVATELY INSURED SAYS MR POLLACK WE NEED ONE SET OF PRICES FOR EVERYONE BUT SOME BARGAINING BETWEEN INDIVIDUAL DOCTORS AND CLIENTS ABOUT PRICES IS PREFERRED BY SOME IN THE MEDICAL PROFESSION AT A LARGE CHIROPRACTIC SERVICE IN NEW YORK ALAN SHERR DETERMINES SOME PRICES BY A PATIENT'S ABILITY TO PAY DR SHERR POSTS A LIST OF SUGGESTED STARTING PRICES AND GOES FROM THERE SOME CLIENTS VISIT AT NO CHARGE OTHERS FOR MUCH LESS THAN THE RECOMMENDED 75 A MONTH OF COURSE THE PRIVATELY INSURED PAY MORE I GUESS YOU COULD SAY THAT THOSE WITH INSURANCE WILL PAY TOP DOLLAR' DR SHERR SAYS BUT THE BENEFIT OF THIS SLIDINGSCALE SERVICE IS NOT ABOUT BRINGING PRICES DOWN BUT ALLOWING THOSE WHO CAN'T AFFORD CARE TO RECEIVE IT PHYSICIANS LIKE JANE ORIENT PRESIDENT OF THE AMERICAN ASSOCIATION OF PHYSICIANS AND SURGEONS WORRY THAT SUCH PRACTICES COULD BACKFIRE IN A WORSTCASE SCENARIO PATIENTS COULD PLEAD POVERTY THUS PAYING A LOWER PRICE THEN THEY COULD QUIETLY FILE PRIVATE INSURANCE CLAIMS FOR THE FULL PRICE OF THE PROCEDURE AND POCKET THE DIFFERENCE PRICES DON'T GO DOWN SHE SAYS BECAUSE WHEN THERE'S A THIRD PARTY INVOLVED LIKE THE INSURANCE COMPANY WHO'S PAYING THERE IS NO REASON FOR PATIENTS TO ECONOMIZE AND THEN THERE ARE THE STORIES OF PEOPLE LIKE MARY BINGAMON OF CUSHING OKLA THE MUSCLES IN HER LUNGS STEADILY EXPAND THREATENING TO SEVER HER OXYGEN SUPPLY COMPLETELY UNLESS SHE UNDERGOES A LUNG TRANSPLANT BUT EVEN AWAITING A SPOT ON THE DONOR LIST WOULD COST HER 100000 MS BINGAMON SAYS AND SHE WILL NEVER HAVE THAT KIND OF MONEY SHE WAS FORCED TO SEPARATE FROM HER HUSBAND TO QUALIFY FOR MEDICAID AND YET EVEN IF THE 38YEAROLD PARTTIME GARMENT WORKER COULD AFFORD PRIVATE INSURANCE TO SUPPLEMENT HER AID SHE SAYS SHE WOULD STILL FIGHT TO KEEP HEALTHCARE COSTS DOWN SHE BUYS 465 OF TEMPORARY COMFORT EACH MONTH IN PRESCRIPTIONS SEARCHING OUT THE BEST PRICES AND DRIVING 65 MILES FOR A CHEAPER LUNG SPECIALIST EVEN IF MORE OF MY COSTS WERE COVERED BY INSURANCE SHE SAYS I'D STILL SHOP AROUND FOR PRICES 9306160104 930616 INTERNATIONAL BRIEF CIBAGEIGY AG EARNINGS FOR '92 ARE RESTATED TO INTERNATIONAL STANDARDS CIBAGEIGY AG BECAME THE MOST RECENT SWISS COMPANY TO ADOPT INTERNATIONAL ACCOUNTING STANDARDS AS PART OF A STRATEGY TO CATCH THE EYE OF FOREIGN INVESTORS CIBA RESTATED 1992 EARNINGS ACCORDING TO STANDARDS ISSUED BY THE LONDONBASED INTERNATIONAL ACCOUNTING STANDARDS COMMITTEE AND ACCORDING TO EUROPEAN COMMUNITY DIRECTIVES THE RESTATEMENT RESULTED IN A 1992 NET AFTERTAX PROFIT PRIOR TO EXTRAORDINARY ITEMS OF 18 BILLION SWISS FRANCS 124 BILLION UP 18 FROM 152 BILLION FRANCS CALCULATED UNDER PREVIOUS STANDARDS AFTER DEDUCTION OF EXTRAORDINARY ITEMS RESTATED PROFIT AMOUNTED TO 16 BILLION FRANCS UNDER CIBA'S PREVIOUS SYSTEM EXTRAORDINARY ITEMS WERE NOT ACCOUNTED FOR IN ITS PROFITANDLOSS STATEMENT IN THE 1990S A WAVE OF BLUECHIP SWISS COMPANIES HAVE MOVED AWAY FROM TRADITIONAL AND OFTEN SECRETIVE DOMESTIC ACCOUNTING PRACTICES TO ADOPT MORE OPEN INTERNATIONAL STANDARDS