KV PHARMACEUTICAL CO SAID IT ENTERED A CONSENT AGREEMENT WITH THE FOOD AND DRUG ADMINISTRATION TO ASSURE THAT THE COMPANY'S PRODUCTS ARE MADE IN COMPLIANCE WITH THE AGENCY'S GOOD MANUFACTURING PRACTICES STANDARD THE AGREEMENT IS IN RESPONSE TO THE FDA'S SEIZURE IN APRIL OF SOME OF THE COMPANY'S SOLID DOSAGE DRUGS AT ITS ST LOUIS PLANT AT THE TIME THE FDA SUSPECTED THAT KV A GENERIC AND CONTROLLED RELEASE DRUG MAKER WAS NOT COMPLYING WITH THE AGENCY'S MANUFACTURING STANDARDS KV SAID IT WILL USE INDEPENDENT EXPERTS TO CERTIFY THAT THE SEIZED PRODUCTS WERE MANUFACTURED IN COMPLIANCE WITH THE FDA ONCE THE FDA ACCEPTS THE CERTIFICATION KV WILL RESUME SHIPPING KV SAID THERE WILL BE NO SIGNIFICANT CAPITAL EXPENDITURES REQUIRED TO ACHIEVE THE CERTIFICATIONS AND IT EXPECTS FDA APPROVAL AND SHIPPING RESUMPTION WITHIN A WEEK THE COMPANY SAID THAT DUE TO DELAYS IT EXPECTS TO REPORT A LOSS THAT COULD EXCEED 3 MILLION FOR THE FIRST QUARTER ENDING JUNE 30 HOWEVER KV SAID THE LOSS MAY BE OFFSET THROUGH THE FISCAL YEAR THROUGH INCREASED SHIPMENTS 9306160102 930616 PENN CENTRAL DEBENTURES THE REDEMPTION DATE IS JULY 30 THE DEBENTURES WILL BE REDEEMED AT 100 OF THE PRINCIPAL AMOUNT PLUS ACCRUED AND UNPAID INTEREST THE COMPANY WHICH IS ENGAGED PRIMARILY IN SPECIALTY PROPERTY AND CASUALTY INSURANCE OPERATIONS SAID IT WILL FINANCE THE REDEMPTION WITH CASH RESERVES AND PROCEEDS FROM THE LIQUIDATION OF TEMPORARY INVESTMENTS 9306160101 930616 BUSINESS BRIEF AMERICAN EXPLORATION CO CANADIAN CONQUEST EQUITY IS SOLD FOR 72 MILLION AMERICAN EXPLORATION CO HOUSTON SAID IT SOLD ITS EQUITY INTEREST IN CANADIAN CONQUEST EXPLORATION INC FOR 72 MILLION THE SALE WILL RESULT IN A NONCASH CHARGE OF 3 MILLION IN THE SECOND QUARTER SAID AMERICAN EXPLORATION IN LAST YEAR'S SECOND QUARTER THE OIL AND GAS COMPANY HAD A LOSS OF 52 MILLION OR EIGHT CENTS A SHARE ON REVENUE OF 139 MILLION THE EQUITY IN THE CALGARY ALBERTA OIL AND GAS COMPANY WAS SOLD PUBLICLY OVER THE ALBERTA STOCK EXCHANGE TO VARIOUS INVESTORS SAID A SPOKESMAN PROCEEDS WILL BE USED TO REDUCE BANK DEBT AND FOR OTHER CAPITAL PROJECTS 9306160100 930616 TECHNOLOGY LOTUS BEGINS SHIPPING NEW 123 SPREADSHEET FOR WINDOWS SYSTEM CAMBRIDGE MASS LOTUS DEVELOPMENT CORP AS EXPECTED BEGAN SHIPPING A NEW VERSION OF ITS FLAGSHIP 123 SPREADSHEET PROGRAM FOR USE WITH MICROSOFT CORP'S WINDOWS OPERATING SYSTEM SEPARATELY THE SOFTWARE COMPANY UNVEILED A NEW WIRELESS ELECTRONIC MAIL SYSTEM ENABLING USERS TO SEND AND RECEIVE MESSAGES BY RADIO LOTUS SAID ITS 123 RELEASE 4 FOR WINDOWS WILL BE WIDELY AVAILABLE IN THE US BY JUNE 22 RICK SHERLUND AN ANALYST AT GOLDMAN SACHS & CO SAID INVESTORS BREATHED A SIGH OF RELIEF YESTERDAY WHEN LOTUS ANNOUNCED IT BEGAN SHIPPING THE PROGRAM WE WERE ALL GETTING A LITTLE APPREHENSIVE THEY WOULDN'T SHIP UNTIL VERY LATE IN THE QUARTER REDUCING REVENUE DURING THE PERIOD FROM THE NEW PRODUCT MR SHERLUND ADDED THAT THE NEW 123 SHOULD STEM THE HEMORRHAGING OF LOTUS'S MARKET SHARE AND HELP GIVE THE COMPANY VERY STRONG EARNINGS MOMENTUM IN THE SECOND HALF OF 1993 LOTUS SAID THE PROGRAM IS AVAILABLE IN THE US FOR 495 SUGGESTED RETAIL UPGRADES FROM EARLIER VERSIONS AND COMPETITORS' SPREADSHEETS WILL BE AVAILABLE FOR 129 SUGGESTED RETAIL LOTUS SAID IT DEVELOPED ITS ELECTRONIC MAIL PRODUCT WITH INTEL CORP AND RAM MOBILE DATA USA LIMITED PARTNERSHIP A VENTURE BETWEEN BELLSOUTH CORP AND RAM BROADCASTING CORP THE PRODUCT WILL BE SHIPPED WITHIN 45 DAYS LOTUS SAID IT WILL BE PACKAGED WITH AN INTEL WIRELESS MODEM AND WILL BE AVAILABLE FOR 775 FROM INTEL IN OVERTHECOUNTER TRADING YESTERDAY LOTUS CLOSED AT 3475 DOWN 625 CENTS 9306160099 930616 CALGON CARBON SEES DROP IN NET PITTSBURGH CALGON CARBON CORP SAID SECONDQUARTER EARNINGS WILL BE LOWER THAN ANALYSTS' PROJECTIONS OF 18 CENTS A SHARE AMID SLUGGISH SALES PRICING PRESSURE AND CUSTOMER DELAY IN ACCEPTING DELIVERIES CALGON SAID IT DOESN'T EXPECT A SIGNIFICANT INCREASE IN EARNINGS UNTIL THE WORLDWIDE RECESSION ENDS THE COMPANY SAID EARNINGS WILL BE LOWER THAN THE YEAREARLIER QUARTER WHEN IT REPORTED NET INCOME OF 92 MILLION OR 23 CENTS A SHARE HOWEVER CALGON SAID IT WILL DO BETTER THAN THE 13 CENTS IT EARNED IN THE 1993 FIRST QUARTER 9306160098 930616 RUSSIA BIRTH OF AN ENTREPRENEURIAL NATION BY ANATOLY CHUBAIS THE BRUISING PUBLIC DEBATE OVER PRESIDENT YELTSIN'S ECONOMIC PROGRAM CONTINUES BUT PRIVATIZATION IN RUSSIA IS ACTUALLY GAINING MOMENTUM ITS STRENGTH FLOWS DIRECTLY FROM THE DESIRE OF MILLIONS OF RUSSIANS TO BECOME PROPERTY OWNERS AND SHAREHOLDERS AS PYOTR STOLYPIN RUSSIA'S LAST GREAT PRIME MINISTER BEFORE THE BOLSHEVIK REVOLUTION SAID THE DESIRE FOR PROPERTY IS AS NATURAL AS HUNGER AT THIS TIME LAST YEAR THE LARGEST MASS PRIVATIZATION EFFORT IN HISTORY WAS JUST UNDER WAY SMALLSCALE RETAIL ENTERPRISES SUCH AS SHOPS AND RESTAURANTS WERE BEING OFFERED FOR SALE TO PRIVATE OWNERS THROUGH LOCAL AUCTIONS AND TENDER OFFERS BY OCTOBER THE RUSSIAN GOVERNMENT WAS DISTRIBUTING PRIVATIZATION VOUCHERS TO EVERY MAN WOMAN AND CHILD IN RUSSIA THESE VOUCHERS COULD BE USED TO BID FOR SHARES IN SOME 6000 LARGE AND MEDIUMSIZE ENTERPRISES IN DECEMBER THE VOUCHER AUCTIONS BEGAN AND BY NEW YEAR'S DAY 18 LARGE ENTERPRISES INCLUDING MOSCOW'S BOLSHEVIK BISCUIT FACTORY AND ELEKS THE STATE MICROELECTRONICS COMPANY HAD BEEN AUCTIONED OFF TO PRIVATE SHAREHOLDERS BY JAN 31 CITIZENS HAD PICKED UP MORE THAN 144 MILLION VOUCHERS AT THEIR LOCAL STATE SAVINGS BANKS THE PACE OF PRIVATIZATION HAS ONLY ACCELERATED SINCE THEN WITH 580 LARGE ENTERPRISES PRIVATIZED THIS APRIL ALONE FOR A TOTAL OF MORE THAN 1700 TO DATE PRIVATIZED LARGE ENTERPRISES NOW EMPLOY 24 MILLION PEOPLE OR MORE THAN 10 OF RUSSIA'S INDUSTRIAL WORK FORCE INCLUDING SMALLSCALE ENTERPRISES MORE THAN 60000 OF RUSSIA'S ESTIMATED 196000 STATEOWNED ENTERPRISES HAVE NOW BEEN PRIVATIZED CREATING THOUSANDS OF NEW SHAREHOLDERS AND PROPERTY OWNERS TO BUY SHARES IN PRIVATIZED MEDIUMSIZE AND LARGESCALE ENTERPRISES INVESTORS NEED ONLY PLACE THEIR BIDS AT ONE OF THE DOZENS OF AUCTION CENTERS THAT HAVE BEEN ESTABLISHED THERE IS A LARGE AND LIQUID MARKET FOR VOUCHERS ON EXCHANGES FOUND IN MAJOR CITIES THROUGHOUT RUSSIA ENSURING THAT VOUCHERS ARE EASILY PURCHASED IN BULK BOTH RUSSIAN CITIZENS AND FOREIGN INVESTORS ARE FREE TO BUY AND SELL VOUCHERS AND TO PARTICIPATE IN AUCTIONS AT ANY TIME AND PLACE AND FOREIGN INVESTORS PLAY BY THE SAME RULES AS RUSSIAN CITIZENS INVESTORS CAN PURCHASE AS LARGE A STAKE AS THEY LIKE THOSE WHO PARTICIPATED IN THE DECEMBER 1992 AUCTIONS EXCHANGED EACH OF THEIR 10000RUBLE VOUCHERS FOR SHARES REPRESENTING AN ESTIMATED 74000 TO 110000 RUBLES IN ACTUAL PROPERTY NOT SURPRISINGLY AS THESE EARLY RESULTS BECOME MORE WIDELY KNOWN DEMAND FOR SHARES IS RISING STEADILY THE PRIVATIZATION OF RUSSIA'S STATEOWNED ENTERPRISES WILL ACCOMPLISH SEVERAL CRITICAL TASKS IN CLEARING AWAY THE OBSTACLES TO A SOUND CURRENCY CAPITAL FORMATION INVESTMENT AND ENTREPRENEURIAL RISKTAKING IT WILL ALLOW WAGES AND PRICES TO FLOAT MORE FREELY STATEOWNED MONOPOLIES THAT DISTRIBUTE MOST WHOLESALE GOODS AND COMMODITIES STILL EFFECTIVELY ASSIGN PRICES ALBEIT AT HIGHER LEVELS NOT UNTIL THESE ENTERPRISES ARE COMPLETELY PRIVATIZED WILL STICKY PRICES FOR GOODS AND SERVICES LOOSEN AND BEGIN TO REFLECT THE INFLUENCE OF SUPPLY AND DEMAND PRIVATIZATION WILL ALSO ALLOW RUSSIA TO ABANDON THE MASSIVE STATE SUBSIDIES NOW KEEPING UNPROFITABLE ENTERPRISES AFLOAT AND DAMPENING INCENTIVES FOR PRODUCTIVITY AND INVESTMENT AS PRIVATIZATION EXPANDS THE PRESSURE FOR CENTRAL BANK CREDITS TO DEPENDENT ENTERPRISES WILL SUBSIDE WHICH SHOULD HELP CHECK INFLATIONARY GROWTH OF THE MONEY SUPPLY PRIVATIZATION IS THEREFORE A KEY TO ANY SERIOUS EFFORT TO HEAD OFF THE THREAT OF HYPERINFLATION AS NEWLY PRIVATIZED ENTERPRISES REORGANIZE THEMSELVES TO BECOME COMMERCIALLY COMPETITIVE WITH THE HELP OF WESTERN POSTPRIVATIZATION AID NOT ONLY WILL THEY CEASE TO BE A DRAIN ON GOVERNMENT RESOURCES BUT THEY WILL PAY TAXES ON THEIR PROFITS AND ACTUALLY HELP EXPAND BADLY NEEDED GOVERNMENT REVENUES NO RUSSIAN BUDGET WILL EVER BE BALANCED WITHOUT THE HELP OF A GROWING ECONOMY AND A GROWING TAX BASE THE INTRODUCTION OF PRIVATIZATION VOUCHERS MARKED THE GENESIS OF A GENUINE CAPITAL MARKET IN RUSSIA EVENTUALLY WITH THE SHARES OF THOUSANDS OF ENTERPRISES AVAILABLE FOR TRADING THE EMBRYONIC STOCK EXCHANGES THAT HAVE SPROUTED UP FROM MOSCOW TO VLADIVOSTOK WILL FINANCE NEW BUSINESS FORMATION INVESTMENT AND JOB CREATION BEFORE WE CAN BUILD CAPITALISM IN RUSSIA WE MUST OPEN UP THE FLOW OF CAPITAL TO ENTREPRENEURS ULTIMATELY THE NEW BUSINESSES AND NEW JOBS THEY CREATE WILL OFFSET JOB LOSSES RESULTING FROM THE WRENCHING RESTRUCTURING OF RUSSIA'S HUGE INEFFICIENT INDUSTRIES WE KNOW THAT WE CANNOT BUILD A FREE ECONOMY FROM THE TOP DOWN NO STATE AGENCY HOWEVER WELLINTENTIONED CAN OUTTHINK MILLIONS OF PROPERTY OWNERS AND ENTREPRENEURS MAKING ECONOMIC CHOICES ON THEIR OWN INITIATIVE WHEN TO BUY WHEN TO SELL FROM WHOM TO WHOM AND FOR HOW MUCH NOR MUST THE STATE ENGAGE IN THE FOLLY OF PREDETERMINING ECONOMIC OUTCOMES IN THE NAME OF FAIRNESS WHAT FAIRNESS COULD THERE BE IN A SYSTEM IN WHICH ENTREPRENEURS AND INVESTORS ARE NOT FREE TO PROFIT FROM THEIR RISKTAKING EVEN TO GET RICH BY CREATING NEW BUSINESSES AND NEW JOBS IN A COUNTRY AS BLESSED BY NATURAL RESOURCES AND HUMAN TALENT AS OURS A DYNAMIC MARKET ECONOMY WILL ALLOW EVERYONE TO MOVE AHEAD TOGETHER WHILE PROVIDING AN ADEQUATE SOCIAL SAFETY NET FOR THOSE WHO CAN'T KEEP UP TODAY AGAINST A GRIM BACKDROP OF HIGH INFLATION PLUMMETING OUTPUT AND POLITICAL TURMOIL A PICTURE OF A NEW RUSSIA IS EMERGING BY DEC 31 WHEN PRIVATIZATION VOUCHERS ARE SET TO EXPIRE OWNERSHIP OF THOUSANDS OF ENTERPRISES WILL HAVE PASSED INTO THE HANDS OF INVESTORS AROUND THE WORLD THOSE WHO INVEST NOW WILL BECOME CHARTER SHAREHOLDERS AND EARLY BENEFICIARIES OF RUSSIA'S ENTREPRENEURIAL CAPITALIST REVOLUTION MR CHUBAIS IS RUSSIA'S DEPUTY PRIME MINISTER IN CHARGE OF PRIVATIZATION 9306160097 930616 COMMODITIES GOLD RISES 420 AFTER FOUR DAYS OF DECLINES AS ATTENTION ON INFLATION APPEARS TO LESSEN BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES RALLIED SURGING 420 TO 37080 AN OUNCE FOR THE ACTIVE AUGUST CONTRACT FOLLOWING FOUR DAYS OF CONSECUTIVELY LOWER SETTLEMENT PRICES TRADERS SAID THE MARKET OPENED SOFTER ON THE GOVERNMENT'S CONSUMER PRICE REPORT FOR MAY WHICH SHOWED THAT INFLATION IN THE US ECONOMY WAS BENIGN WHEN SPECULATORS PROVED UNABLE TO PUSH GOLD A TRADITIONAL HEDGE AGAINST INFLATION EVEN LOWER AFTER THE RELEASE OF THE REPORT THE MARKET TURNED BULLISH WHEN GOLD STARTED TO SELL OFF AND THERE WAS NO SUSTAINED FOLLOWTHROUGH SHORTCOVERING BEGAN AND FRESH BUYING CAME IN SAID SCOTT MEYERS A TECHNICAL ANALYST WITH REDEL TRADING IN NEW YORK SHORTCOVERING IS THE PROCESS BY WHICH INVESTORS HOLDING SHORT POSITIONS OR WAGERS THAT GOLD PRICES WILL DECLINE BUY BACK FUTURES CONTRACTS TO CLOSE OUT THEIR POSITIONS LARGESCALE SHORTCOVERING BY GOLD PRODUCERS AND BIG INVESTORS SUCH AS COMMODITY FUNDS TENDS TO ADD UPWARD PRICE MOMENTUM TO THE MARKET I THINK A SHORTTERM BOTTOM HAS BEEN PUT IN MR MEYERS PREDICTED THIS WAS A CASE OF PEOPLE BUYING ON A SUSTAINED PULLBACK GOLD APPEARED CHEAP AND PRESENTED A LOWRISK BUYING OPPORTUNITY ON NEW YORK'S COMMODITY EXCHANGE TRADERS SAID THE RALLY MAY SIGNAL A RENEWED MARKET FOCUS ON GOLD'S IMPROVING SUPPLY AND DEMAND EQUATION AND A LESSENING OF ATTENTION TOWARD THE ECONOMY'S INFLATIONARY OUTLOOK INDEED GOLD'S RETREAT FROM ITS RECENT SETTLEMENT HIGH OF 38340 ON MAY 27 WAS LARGELY THE RESULT TRADERS SAY OF DISSIPATING FEARS OF INFLATION THIS WILL BE A REAL CHOPPY AFFAIR SAID STEPHEN PLATT A SENIOR COMMODITY ANALYST WITH DEAN WITTER IN CHICAGO THE RALLY TUESDAY TENDS TO NEGATE THE IMPACT OF THE WEAK INFLATION NUMBERS SOME OF THE SUPPORT FOR GOLD IS CLEARLY COMING FROM INVESTMENT DEMAND AND THAT DEMAND IS NOT TOTALLY RELIANT UPON INFLATIONARY TRENDS MR PLATT SAID THE ACTIVE AUGUST FUTURES CONTRACT COULD MAKE A RUN FOR 375 TO 380 AN OUNCE IN THE WEEKS AHEAD OTHER ANALYSTS WERE SKEPTICAL BERNARD SAVAIKO WHO TRACKS COMMODITIES FOR PAINEWEBBER IN NEW YORK SAID HE WAS PERPLEXED AT GOLD'S STRONG GAINS YESTERDAY ON A DAY WHEN THE DOLLAR WAS STRONGER AND OIL PRICES WEAKER GOLD TENDS TO MOVE INVERSELY TO THE DOLLAR THE RALLY TODAY SMACKED OF TECHNICAL FACTORS HE SAID WE'RE SEEING A TECHNICAL BOUNCE TO CORRECT AN OVERSOLD CONDITION BUT THAT DOESN'T MEAN THAT THE MARKET'S RECENT DOWNWARD CORRECTION HAS ENDED IN OTHER COMMODITY MARKETS COFFEE FUTURES PRICES RALLIED 255 CENTS TO CLOSE AT 613 CENTS A POUND FOR THE ACTIVE JULY CONTRACT THIS IS A RALLY FROM OVERSOLD CONDITIONS SAID MR MEYERS OF REDEL TRADING REPORTS OF LARGE OFFICIAL INVENTORIES HAVE COMBINED WITH SEASONALLY LOW DEMAND TO DEPRESS COFFEE PRICES IN RECENT WEEKS LAST WEEK PRICES WERE DOWN MORE THAN 2 FROM THE PREVIOUS WEEK MANY ANALYSTS BELIEVE YESTERDAY'S GAINS WILL BE SHORTLIVED CONTINUED WEAK DEMAND AND AMPLE STOCKS SHOULD PREVENT A MEANINGFUL RISE IN COFFEE FUTURES IN COMING WEEKS IN THE ABSENCE OF FRESH NEWS SAID GOLDMAN SACHS IN ITS WEEKLY ANALYSIS OF THE COMMODITY MARKETS ENERGY CRUDE OIL PRICES PLUNGED IN ACTIVE TRADING IN THE WAKE OF KUWAIT'S FAILURE TO RATIFY LAST WEEK'S OPEC ACCORD TO LIMIT PRODUCTION CREATING ANXIETY OF A SEVERE GLUT ON TOP OF THAT TRADERS ALSO SAID THAT HEAVY PRODUCTION FROM THE NORTH SEA EXPECTED IN JULY ADDED TO THE SENSE THAT THERE IS TOO MUCH OIL IN THE MARKETPLACE LIGHT SWEET CRUDE FOR JULY DELIVERY SANK 31 CENTS A BARREL TO A LIFEOFCONTRACT LOW OF 1858 A BARREL ON THE NEW YORK MERCANTILE EXCHANGE PETROLEUM PRODUCTS ALSO PLUNGED ON EXPECTATIONS THAT THE LATEST WEEKLY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE WOULD SHOW A FURTHER BUILDUP OF INVENTORIES JULY GASOLINE ALSO DROPPED TO A LIFEOFCONTRACT LOW SETTLING AT 5393 CENTS A GALLON OFF 061 CENT JULY HEATING OIL SETTLED AT 52 CENTS A GALLON DOWN 045 CENT BUT AFTER TRADING ENDED ON THE NEW YORK MERC JUST THE OPPOSITE HAPPENED THE API REPORTED THAT GASOLINE INVENTORIES FELL BY ABOUT ONE MILLION BARRELS IN THE WEEK ENDED JUNE 11 CRUDE STOCKS WHICH WERE EXPECTED TO DECLINE SLIGHTLY ACTUALLY FELL A MUCH LARGERTHANEXPECTED 68 MILLION BARRELS TRADERS SAID IT WAS HARD TO SAY IF THE DROP IN CRUDE OIL INVENTORIES WOULD OVERCOME MARKET FEARS ABOUT LAST WEEK'S MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES WHERE KUWAIT REFUSED TO SIGN THE PACT ALLOTTING QUOTAS TO EACH MEMBER 9306160095 930616 BUSINESS BRIEF INTERNATIONAL LEASE FINANCE CORP BOEING GROUP SAYS COMPANY PLANS TO ORDER FIVE AIRCRAFT BOEING CO'S COMMERCIAL AIRPLANE GROUP SAID INTERNATIONAL LEASE FINANCE CORP LOS ANGELES PLANS TO ORDER FIVE NEW BOEING AIRCRAFT VALUED AT ABOUT 450 MILLION THE SEATTLE AIRCRAFT MAKER AND DEFENSE CONTRACTOR SAID FIRM CONTRACTS ARE IN PLACE FOR TWO AIRPLANE PURCHASES WITH THREE OTHERS IN FINAL NEGOTIATIONS ALL ARE SCHEDULED FOR DELIVERY BETWEEN 1994 AND 1998 THE ORDERS ANNOUNCED AT THE PARIS AIR SHOW INCLUDE THREE 737200S ONE 747400 AND ONE 767300 EXTENDEDRANGE JET INTERNATIONAL LEASE IS A LESSOR AND FINANCIER OF JET TRANSPORTS 9306160094 930616 BUSINESS BRIEF ISS INTERNATIONAL SERVICE SYSTEM NEW YORK UNIT PURCHASES NATIONAL CLEANING GROUP ISS INTERNATIONAL SERVICE SYSTEM INC A NEW YORK BUILDING MAINTENANCE CONCERN SAID IT PURCHASED NEW YORKBASED NATIONAL CLEANING GROUP INC FOR 935 MILLION ISS A UNIT OF THE DANISH COMPANY ISS INTERNATIONAL SERVICE SYSTEM AS HAS ANNUAL REVENUE OF ABOUT 950 MILLION THE COMPANY SAID NATIONAL CLEANING A PRIVATELY HELD BUILDING MAINTENANCE COMPANY POSTED REVENUE OF ABOUT 490 MILLION FOR THE FISCAL YEAR ENDED SEPT 30 ISS PLANS TO SPIN OFF THE SECURITY AND ELEVATOR MAINTENANCE DIVISIONS OF NATIONAL CLEANING AND WILL ADD PEST CONTROL TO ITS LINE OF SERVICES 9306160093 930616 BUSINESS BRIEF SMITH CORONA CORP US APPEALS COURT AFFIRMS JUDGMENT AGAINST PELIKAN SMITH CORONA CORP NEW CANAAN CONN SAID THE US COURT OF APPEALS FOR THE FEDERAL CIRCUIT IN WASHINGTON AFFIRMED A DAMAGE AWARD BY A FEDERAL COURT IN A PATENT INFRINGEMENT AND FALSEADVERTISING SUIT AGAINST PELIKAN INC OF FRANKLIN TENN THE US DISTRICT COURT IN NASHVILLE TENN AWARDED DAMAGES IN EXCESS OF 29 MILLION IN JANUARY 1992 IN THE SUIT SMITH CORONA CONTENDED THAT PELIKAN WILLFULLY INFRINGED THREE SMITH CORONA PATENTS COVERING TYPEWRITER RIBBON AND CORRECTINGTAPE CARTRIDGES IT ALSO CONTENDED THAT PELIKAN ENGAGED IN FALSE ADVERTISING BY USING SMITH CORONA TRADEMARKS IN MARKETING PELIKAN CARTRIDGES ROBERT BRASSELL VICE PRESIDENT OF MARKETING AT PELIKAN SAID HE BELIEVES THAT IT WAS A DIFFICULT DECISION FOR THE COURT AND ADDED WE JUST WANT TO PUT IT BEHIND US NOW WE'VE CONTINUED TO SHIP OTHER CARTRIDGE PRODUCTS SO THERE HAS REALLY BEEN NO CHANGE IN THE WAY WE HAVE OPERATED 9306160092 930616 WHEN THE GOVERNMENT PUTS IN ITS OAR BY RON CHAPMAN JUST DOWNSTREAM FROM NEW ORLEANS SANDWICHED BETWEEN THE BANKS OF THE MISSISSIPPI RIVER AND BAYOU BIENVENUE LIES THE TOWN OF CHALMETTE LA IT WAS ON THIS SITE THAT IN 1814 AMERICANS FENDED OFF THE LAST FOREIGN INVASION OF THE US DURING THE BATTLE OF NEW ORLEANS ONE WOULD THINK THAT ACTIONS IN WASHINGTON WOULD NOT HAVE MUCH EFFECT ON SMALLTOWN LIFE DOWN HERE ON THE LOUISIANA BAYOU BUT THEY DO SOMETIMES IN FACT THEY FEEL LIKE ANOTHER INVASION AIMED AT ANYONE TRYING TO KEEP A SMALL BUSINESS ALIVE AND PROFITABLE FOR 17 YEARS MY COMPANY HAS BUILT PIROGUES TRADITIONAL HANDCRAFTED HUNTING AND FISHING BOATS SOMETIMES CALLED CAJUN CANOES THEY ARE ESPECIALLY GOOD FOR MOVING THROUGH BACKWATER BAYOUS MARSHES AND MUDFLATS WHICH MAKES THEM POPULAR DOWN HERE TWO YOUNG MEN WORK WITH ME WHO SEEK TO LEARN THIS BOATBUILDING TRADE BEING A SMALLBUSINESS MAN HAS NEVER BEEN EASY BUT THESE DAYS IT SEEMS HARDER THAN EVER I FACE THE PERSISTENT EROSION OF INVESTMENT CAPITAL DUE TO EVERESCALATING INSURANCE COSTS IT IS NOT UNCOMMON FOR SMALL BUSINESSES TO PAY 6 TO 10 OF GROSS REVENUES FOR INSURANCE SOME BUSINESSES PAY EVEN MORE HURTING MY BOTTOM LINE ARE WORKERS' COMPENSATION INSURANCE AUTOMOBILE INSURANCE LIFE INSURANCE UNEMPLOYMENT INSURANCE GENERAL LIABILITY INSURANCE PRODUCT LIABILITY INSURANCE FLOOD INSURANCE FIRE INSURANCE BUILDING STRUCTURE INSURANCE BUILDING CONTENTS INSURANCE AND HEALTH INSURANCE TAXES ACCOUNT FOR ANOTHER BITE EMPLOYEE TAXES PROPERTY TAXES STATE SALES TAXES LOCAL SALES TAXES GASOLINE TAXES INVENTORY TAXES AND OCCUPATIONAL LICENSES TAKE A HEAVY TOLL CONGRESS ADDED TO THE MISERY A FEW YEARS AGO BY INCREASING THE EMPLOYER CONTRIBUTION TO SOCIAL SECURITY THE CLINTON ADMINISTRATION DOESN'T SEEM TO CARE ABOUT THESE BURDENS AND EVEN WANTS TO ADD TO THEM RUMORS ABOUT THE DETAILS OF MR CLINTON'S ECONOMIC PLAN HAVE ALREADY FORCED UP THE COSTS OF RAW MATERIALS HIS TRIAL BALLOONS OF VALUEADDED TAXES PAYROLL TAXES FOR RETRAINING AND TRANSPORTATION FEES ALONG WITH HIS CALLS FOR MORE ENVIRONMENTAL LEGISLATION MORE REGULATIONS AND HEALTHCARE REFORM HAVE FORCED BUSINESSES TO POSITION THEMSELVES FOR THE APPROACHING ONSLAUGHT AND HAVE PUT SMALLBUSINESS MEN LIKE ME ON THE ROPES OUR PIROGUES ARE FINISHED WITH CYPRESS GUNWALES LUMBER PRICES HAVE RISEN BY NEARLY 50 IN THE PAST FEW MONTHS PETROCHEMICALS PROVIDE THE BASIS FOR THE HULLS AND REINFORCEMENTS THE COSTS OF THESE HAVE RECENTLY INCREASED BY 65 HARDWARE HAS TRACKED A SIMILAR COURSE AN INCREASE IN THE COST OF ENERGY WHICH SEEMS LIKELY IF SOME SORT OF FUEL TAX IS PASSED WOULD PROVE CRIPPLING WORST OF ALL PERHAPS A NEW TAX FOR HEALTH CARE RUMORED TO REQUIRE AN ADDITIONAL EMPLOYER CONTRIBUTION OF 7 OF TOTAL GROSS PAY COULD BE ON THE HORIZON SUCH A TAX MAY WELL UPEND ALREADY OVERBURDENED SMALL BUSINESSES LIKE MINE NOW FACED WITH OPERATING TAXES NOT INCLUDING INCOME TAXES THAT AMOUNT TO 9 OF GROSS REVENUES SINCE A 10 PROFIT IS CONSIDERED GOOD FOR A SMALL BUSINESS AN 11 TO 20 MANDATED INVESTMENT IN UNPRODUCTIVE OVERHEAD TAXES AND INSURANCE WOULD BE DISASTROUS AS IF THIS WERE NOT ENOUGH MY LOYAL EMPLOYEES ARE GETTING RESTLESS THEY NEED MORE MONEY AND DESERVE IT ONE REASON THEY DON'T TAKE HOME MORE IS THAT THEIR PAYCHECKS REFLECT ONLY PART OF MY TOTAL LABOR COSTS IF WORKERS WERE ROUTINELY INFORMED ABOUT WHAT MANAGEMENT PAYS IN REAL LABOR COSTS PER HOUR RLCPH THEY'D LIKELY CONCLUDE THAT THEY COULD LIVE COMFORTABLY ON RLCPH IF ONLY THEY RECEIVED IT ALL LET US ASSUME A 10ANHOUR WAGE AND A 40HOUR WEEK FOR A 400 WEEKLY GROSS SALARY THE NORMAL TAKEHOME FOR THIS CHECK IS 315 THAT IS WHAT THE WORKER HAS LEFT TO SUPPORT HIS FAMILY BUT HOW MUCH DOES A 10ANHOUR WORKER ACTUALLY COST THE EMPLOYER EACH WEEK OBVIOUSLY HE COSTS THE 400 IN GROSS PAY FROM WHICH ARE SUBTRACTED FEDERAL AND STATE TAXES AND THE EMPLOYEE'S SHARE OF SOCIAL SECURITY ADDING UP TO 85 ON TOP OF THAT THE EMPLOYER PAYS THE BUSINESS'S SHARE OF SOCIAL SECURITY 31 A MEDICARE TAX 6 WORKERS' COMPENSATION 34 A FEDERAL UNEMPLOYMENT TAX 3 STATE UNEMPLOYMENT INSURANCE 1 AND IN LOUISIANA A SPECIAL ASSESSMENT FOR DEBT SERVICE 6 ADDED TOGETHER THE COST TO THE EMPLOYER IS 481 OR 53 MORE THAN THE WORKER'S TAKEHOME PAY THIS CALCULATION DOES NOT EVEN INCLUDE OTHER EMPLOYERPROVIDED BENEFITS LIKE HEALTH INSURANCE SICK DAYS PAID HOLIDAYS VACATIONS AND BONUSES AN ADDITIONAL 7 PAYROLL TAX FOR HEALTH REFORM MIGHT WELL BAR FUTURE RAISES FOR MANY WORKERS ADDING IN THIS EXAMPLE 28 MORE TO THE RLCPH IT WOULD ALSO DISCOURAGE THE HIRING OF NEW WORKERS MY OWN BUSINESS HAS ALREADY HAD TO SCALE BACKFROM FOUR EMPLOYEES TO TWO IT IS NO WONDER THAT SMALL BUSINESSES TODAY ARE HURTING THEY ARE SQUEEZED BY ESCALATING MATERIAL LABOR AND OVERHEAD PRESSURES AND BY A GROWING LACK OF INCENTIVE TO SUCCEED AN UNHEALTHY MIX HERE IN CHALMETTE THERE IS A REAL SENSE THAT MR CLINTON HAVING LIVED A CHARMED LIFE JUST DOESN'T GET IT HE FAILS TO UNDERSTAND HOW AN ECONOMY WORKS OR HOW HARD MOST PEOPLE MUST LABOR TO MAKE ENDS MEET PERHAPS HE HAS SPENT TOO MUCH OF HIS LIFE ON THE RECEIVING END OF TAX DOLLARS SMALL BUSINESSES SUSPECT THAT MR CLINTON'S ECONOMIC PLAN EVEN IN A WATEREDDOWN FORM WILL RAISE TAXES IGNITE INFLATION DESTABILIZE INTEREST RATES INCREASE OVERHEAD COSTS REDUCE MARKETS CUT PRODUCTION TRIGGER BANKRUPTCIES GENERATE UNEMPLOYMENT AND FREEZE WAGES FAMILY BUSINESSES COULD GO THE WAY OF FAMILY FARMS REMEMBER THEM IT IS A PRETTY DAY TODAY IN CHALMETTE CLEAR AND DRY WITH A BRIGHT SUN A DAY TO WARM ONE'S SPIRITS BUT THERE'S AN UNUSUAL CHILL IN THE AIR THIS SPRING IT COMES FROM WASHINGTON MR CHAPMAN SHIPWRIGHT ALSO TEACHES HISTORY AT THE LOCAL COMMUNITY COLLEGE 9306160091 930616 TECHNOLOGY & HEALTH CHOLESTEROL LEVELS DECLINE SINCE '60S BUT NOT ENOUGH FOR SOME AMERICANS BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL AMERICANS' AVERAGE LEVEL OF CHOLESTEROL IN THE BLOOD CONTINUED TO DROP THROUGH 1991 NEW FEDERAL STUDIES SHOW BUT THE STUDIES ESTIMATED 52 MILLION ADULTS STILL HAVE CHOLESTEROL LEVELS HIGH ENOUGH TO WARRANT THEIR SWITCHING TO A LOWFAT DIET AND 127 MILLION MAY BE CANDIDATES FOR CHOLESTEROLREDUCING DRUG THERAPY THE SAMPLINGS OF CHOLESTEROL LEVELS IN THE GENERAL POPULATION WERE PUBLISHED ALONG WITH NEW RECOMMENDATIONS TO REDUCE THE RISK OF HEART DISEASE THE RECOMMENDATIONS PUT STRONGER EMPHASIS ON MEASURING AND CONTROLLING THE TYPE OF CHOLESTEROL IN THE BLOODSTREAM RATHER THAN JUST THE TOTAL AMOUNT OF CHOLESTEROL IN A SURVEY CONDUCTED FROM 1988 TO 1991 THE MEAN BLOOD CHOLESTEROL LEVEL IN ADULTS WAS 205 MILLIGRAMS OF CHOLESTEROL FOR EACH MILLILITER OF BLOOD SERUM THIS WAS A DROP OF 38 FROM THE PREVIOUS SURVEY DONE IN THE 19761980 PERIOD ACCORDING TO REPORTS PUBLISHED IN THIS WEEK'S ISSUE OF THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION THE NEW LEVEL WAS DOWN 68 FROM THE 19601962 SURVEY WHEN THE MEAN CHOLESTEROL LEVEL WAS 220 MILLIGRAMS PER DECILITER OF SERUM THE CHOLESTEROL DECLINE ALONG WITH A DECREASE IN CIGARETTE SMOKING MAY HAVE ACCOUNTED FOR MUCH OF THE 52 DROP SINCE 1960 IN THE DEATH RATE DUE TO HEART DISEASE THE REPORTS SAID THE NEW FIGURES INDICATE THAT IT MAY BE POSSIBLE TO REACH A GOAL FOR THE US POPULATION OF AN AVERAGE BLOOD CHOLESTEROL LEVEL OF 200 MILLIGRAMS BY THE YEAR 2000 ACCORDING TO THE 11MEMBER RESEARCH TEAM THAT EXTRACTED THE NEW FIGURES FROM DATA COLLECTED BY THE FEDERAL GOVERNMENT'S THREE NATIONAL HEALTH AND NUTRITION EXAMINATION SURVEYS DONE SINCE 1960 THE NEW FIGURES WERE PRESENTED IN THE CONTEXT OF 1985 GUIDELINES WHICH HAD SET A LEVEL OF LESS THAN 200 MILLIGRAMS OF CHOLESTEROL AS DESIRABLE A LEVEL RANGING BETWEEN 200 AND 239 MILLIGRAMS HAD BEEN LABELED BORDERLINE HIGH AND 240 MILLIGRAMS AND ABOVE HAD BEEN DECLARED HIGH IN A SERIES OF NEW RECOMMENDATIONS AN EXPERT PANEL FROM THE FEDERALLY BACKED NATIONAL CHOLESTEROL EDUCATION PROGRAM ADDED A SECOND CHOLESTEROL MEASUREMENT TO THE TEST EVERY ADULT SHOULD HAVE DONE AT LEAST ONCE EVERY FIVE YEARS IN ADDITION TO MEASURING TOTAL CHOLESTEROL THE PANEL URGED THAT THE LEVEL OF THE HDL TYPE OF CHOLESTEROL BE MEASURED THIS IS THE GOOD CHOLESTEROL THAT NEW EVIDENCE INDICATES HELPS REDUCE THE RISK OF HEART DISEASE THE PANEL SUGGESTED THAT IF A PERSON'S HDL LEVEL IS AT 35 MILLIGRAMS OR LOWER HE OR SHE SHOULD HAVE A MORE DEFINITIVE CHOLESTEROL TEST DONE AFTER FASTING FOR NINE TO 12 HOURS THE NEW SURVEY INDICATED THAT ABOUT 40 OF ADULTS MAY NEED TO UNDERGO THIS ADDITIONAL CHOLESTEROL ANALYSIS 9306160090 930616 WHO'S NEWS TENCOR INSTRUMENTS TENCOR INSTRUMENTS MOUNTAIN VIEW CALIF JAMES W BAGLEY AND DEAN O MORTON HAVE BEEN NAMED TO THE BOARD OF THIS CHIPEQUIPMENT MAKING COMPANY INCREASING ITS MEMBERSHIP TO SIX MR BAGLEY 54 YEARS OLD IS PRESIDENT OF APPLIED MATERIALS INC IN SANTA CLARA CALIF MR MORTON 61 IS A RETIRED EXECUTIVE VICE PRESIDENT AT HEWLETTPACKARD CO IN PALO ALTO CALIF 9306160089 930616 BUSINESS BRIEF AIR CANADA CARRIER MCDONNELL DOUGLAS TO STUDY DC9 UPGRADING AIR CANADA AND MCDONNELL DOUGLAS CORP SAID THEY SIGNED A LETTER OF INTENT TO JOINTLY STUDY MODERNIZING AND UPGRADING THE MONTREAL CARRIER'S FLEET OF 35 DC9 AIRLINERS THE COMPANIES SAID THEY EXPECT TO DECIDE BY FALL WHETHER TO PROCEED WITH THE PROGRAM FINANCIAL TERMS WEREN'T DISCLOSED AIR CANADA CANADA'S BIGGEST AIRLINE SAID IT THINKS IT COULD ADD 15 YEARS OF OPERATIONAL LIFE TO THE 100SEAT AIRCRAFT BY UPGRADING THE ENGINE AND VARIOUS SYSTEMS AT A COST MUCH LOWER THAN THE PRICE OF NEW AIRLINERS MCDONNELL DOUGLAS A ST LOUISBASED MAKER OF AEROSPACE EQUIPMENT WOULD WARRANT STRUCTURAL ELEMENTS OF THE UPGRADED AIRCRAFT FOR THE 15 YEARS THE COMPANIES SAID THEY WOULD BE OPEN TO USING THE PROGRAM WITH OTHER DC9 OPERATORS 9306160088 930616 BUSINESS BRIEF RELIANCE ELECTRIC CO SECONDPERIOD NET TO TRAIL ESTIMATES MADE BY ANALYSTS RELIANCE ELECTRIC CO CITING CONTINUING SLUGGISH CUSTOMER DEMAND FOR MAJOR CAPITAL EQUIPMENT SAID SECONDQUARTER EARNINGS WOULD FALL AS MUCH AS FIVE CENTS A SHARE BELOW ANALYSTS' ESTIMATES OF 28 CENTS TO 32 CENTS A SHARE MOREOVER JOHN C MORLEY CHIEF EXECUTIVE OFFICER NOTED THAT THE CLEVELANDBASED INDUSTRIAL PRODUCTS MAKER'S FORMERLY CAUTIOUS ECONOMIC OUTLOOK FOR THE SECOND HALF OF THE YEAR HAS SOURED AMID AN INCREASINGLY UNCERTAIN VIEW OF THE OVERALL ECONOMY AS A RESULT AT LEAST THREE FINANCIAL ANALYSTS SLASHED THEIR 1993 ESTIMATES BY 10 CENTS TO 22 CENTS ON FORECASTS RANGING FROM 110 TO 135 A SHARE ACCORDING TO FIRST CALL CORP AN ADVISORY FIRM THAT TRACKS ANALYSTS' EXPECTATIONS THE ANALYSTS ALSO CUT 1994 ESTIMATES FOR THE CURRENT QUARTER THE COMPANY SAID NET INCOME WILL TOP THE 18 CENTS A SHARE IT EARNED A YEAR EARLIER LARGELY BECAUSE OF SIGNIFICANTLY LOWER INTEREST EXPENSE YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY'S STOCK CLOSED AT 20 OFF 75 CENTS 9306160087 930616 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 CANADIAN REYNOLDS METALS LTD 285 MILLION OF AMORTIZING NOTES DUE JULY 15 2002 PRICED AS 6625S AT 99369 TO YIELD 672 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 115 PERCENTAGE POINTS ABOVE THE TREASURY SEVENYEAR NOTE ALTHOUGH IT HAS A MATURITY OF NINE YEARS AMORTIZATION BEGINS AFTER FIVE YEARS A SEVENYEAR AVERAGE LIFE IS EXPECTED RATED BAA1 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CANADIAN REYNOLDS METALS IS A SUBSIDIARY OF REYNOLDS METALS CO DUKE POWER CO 150 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 1 2001 WON IN COMPETITIVE BIDDING BY DEALERS LED BY MERRILL LYNCH & CO AND REOFFERED AS 5875S AT 9892 TO YIELD 6048 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 05 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P DUQUESNE LIGHT CO 200 MILLION TWOPART ISSUE OF FIRST COLLATERALIZED TRUST BONDS PRICED THROUGH DEALERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 100 MILLION OF FIRST COLLATERALIZED TRUST BONDS DUE JUNE 15 2004 WAS PRICED AS 6625S AT 99024 TO YIELD 6752 NONCALLABLE FOR FIVE YEARS THE ISSUE WAS PRICED AT A SPREAD OF 083 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE SECOND PART CONSISTING OF 100 MILLION OF FIRST COLLATERALIZED TRUST BONDS DUE JUNE 15 2025 WAS PRICED AS 755 AT 98398 TO YIELD 7685 NONCALLABLE FOR SEVEN YEARS THE ISSUE WAS PRICED AT A SPREAD OF 088 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND THE ISSUE IS RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P DUQUESNE LIGHT IS A UNIT OF DQE GENERAL INSTRUMENT CORP 450 MILLION OF CONVERTIBLE JUNIOR SUBORDINATED NOTES DUE 2000 PRICED WITH A COUPON OF 5 AND AN INITIAL CONVERSION PRICE OF 4750 A COMMON SHARE OR ABOUT 21 COMMON SHARES FOR EACH 1000 PRINCIPAL AMOUNT OF NOTES GOLDMAN SACHS & CO AND MERRILL LYNCH & CO COMANAGED THE OFFERING UNDERWRITERS HAVE BEEN GRANTED OPTIONS TO PURCHASE UP TO AN ADDITIONAL 50 MILLION OF NOTES TO COVER OVERALLOTMENT GEORGIAPACIFIC CORP 250 MILLION OF DEBENTURES DUE JUNE 15 2023 PRICED AS 8125S AT 98626 TO YIELD 8249 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 145 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO GREAT WESTERN FINANCIAL CORP 150 MILLION OF SENIOR NOTES DUE JUNE 15 1998 PRICED AS 6125S AT 9968 TO YIELD 62 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 105 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE RATED BAA2 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO KENTUCKY UTILITIES CO 1235 MILLION OF FIRST MORTGAGE BONDS PRICED THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART CONSISTING OF 615 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 15 2000 WAS PRICED AT PAR AT 595 THE SECOND PART CONSISTING OF 62 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 15 2003 WAS PRICED AT PAR TO YIELD 632 BOTH PARTS OF THE ISSUE ARE NONCALLABLE AND ARE PRICED AT A SPREAD OF 04 PERCENTAGE POINT OVER COMPARABLE TREASURYS THE ISSUE IS RATED DOUBLEA2 BY MOODY'S AND DOUBLEAMINUS BY S&P KENTUCKY UTILITIES IS A UNIT OF KU ENERGY CORP PACIFIC BELL 350 MILLION OF DEBENTURES DUE JUNE 15 2025 PRICED AS 7375S AT 98797 TO YIELD 7474 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 066 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PACIFIC BELL IS A UNIT OF PACIFIC TELESIS GROUP PAINEWEBBER GROUP INC 200 MILLION OF SENIOR NOTES DUE JUNE 15 1998 PRICED AS 625S AT 99665 TO YIELD 6329 ACCORDING TO MCM CORPORATEWATCH THE SIZE OF THE ISSUE WAS INCREASED FROM AN INITIALLY PLANNED 150 MILLION THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 115 PERCENTAGE POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED SINGLEA3 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH PAINEWEBBER UNION BANK OF FINLAND 200 MILLION OF NOTES DUE JUNE 15 1996 PRICED AS 525S AT 9974 TO YIELD 5345 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 09 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA3 BY MOODY'S AND TRIPLEB BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP UNION BANK IS A UNIT OF UNITAS BANK LTD ROWAN COS 10 MILLION COMMON SHARES OFFERED AT A PRICE OF 9625 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS MASSACHUSETTS BAY TRANSPORTATION AUTHORITY 5098 MILLION 1993 SERIES A GENERAL TRANSPORTATIONSYSTEM REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP YIELDS RANGE FROM 36 IN 1995 TO 575 IN 2022 BONDS DUE IN 2003 2006 AND 2022 ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P ALL OTHER BONDS HAVE SINGLEA RATINGS FROM MOODY'S S&P AND FITCH INVESTORS SERVICE INC PHILADELPHIA MUNICIPAL AUTHORITY 1763 MILLION LEASE REVENUE REFUNDING BONDS PRICED BY A KIDDER PEABODY & CO GROUP INCLUDED IN THE OFFERING ARE 1315 MILLION 1993 SERIES A BONDS WHICH ARE PRICED TO YIELD FROM 235 IN NOVEMBER TO 577 IN 2018 THOSE BONDS ARE INSURED BY FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THERE ARE ALSO 448 MILLION 1993 SERIES B BONDS WHICH ARE 64S PRICED AT PAR THEY ARE TO YIELD 64 ON NOVEMBER 15 2016 THE SERIES B BONDS HAVE BEEN RATED BA BY MOODY'S AND SINGLEB BY S&P SAN DIEGO COUNTY CALIF 500 MILLION TWOPART ISSUE OF TAXABLE NOTES PRICED THROUGH DEALERS LED BY MERRILL LYNCH & CO ACCORDING TO MCM CORPORATEWATCH THE FIRST PART INCLUDES 250 MILLION OF NOTES DUE JUNE 29 1994 PRICED TO FLOAT WEEKLY AT A SPREAD OF 01875 PERCENTAGE POINT ABOVE THE THREEMONTH TREASURY BILL THE NOTES WHICH PAY INTEREST QUARTERLY ARE NONCALLABLE THE SECOND PART INCLUDES 250 MILLION OF NOTES DUE JUNE 29 1994 PRICED TO FLOAT QUARTERLY AT THE THREEMONTH LONDON INTERBANK OFFERED RATE CURRENTLY 33125 THE NOTES WHICH PAY INTEREST QUARTERLY ARE NONCALLABLE THE ISSUE IS RATED P1 BY MOODY'S AND SINGLEA1PLUS BY S&P SAN FRANCISCO CITY AND COUNTY 325 MILLION 19931994 TAX AND REVENUE ANTICIPATION NOTES APPARENTLY WON BY GOLDMAN SACHS & CO WITH A BID SETTING THE TRUE INTEREST COST AT 2574 THE NOTES HAVE A 325 COUPON AND ARE PRICED TO YIELD 252 ON JULY 15 1994 MOODY'S HAS RATED THE ISSUE MIG1 AND S&P HAS ASSIGNED AN SP1PLUS RATING WASHINGTON DC 2358 MILLION SERIES 1993 GENERALOBLIGATION BONDS APPARENTLY WON BY A LEHMAN BROTHERS GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5867 YIELDS RANGE FROM 325 IN 1994 TO 61 IN 20112013 BONDS DUE IN 19962004 ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P THE OTHER BONDS HAVE A BAA1 RATING FROM MOODY'S AND A SINGLEAMINUS RATING FROM S&P DAIWA MORTGAGE ACCEPTANCE CORP 193 MILLION OF MOBILEHOMEPARK MORTGAGELOAN PASSTHROUGH CERTIFICATES PRICED IN SEVEN PARTS THROUGH DAIWA SECURITIES AMERICA INC THE SECURITIES ARE BACKED BY NEWLY ORIGINATED 30YEAR FIRST MORTGAGES ON 42 MOBILEHOME PARKS THE MORTGAGES HAVE BOTH FIXED AND FLOATING RATES THE DEAL MORTGAGE PASS THROUGH CERTIFICATES SERIES 19932MHP WAS ISSUED OFF THE DAIWA MORTGAGE ACCEPTANCE CORP COMMERCIAL MORTGAGE SHELF THE SECURITIES WERE ISSUED IN A SENIOR/SUBORDINATED REALESTATE MORTGAGEINVESTMENT CONDUIT STRUCTURE WITH SEVEN CLASSES TWO UNRATED CLASSES WERE PRIVATELY PLACED PRICING DETAILS WERE NOT RELEASED OF THE FIVE PUBLIC CLASSES DAIWA HAS RELEASED ONLY PRELIMINARY INFORMATION THE DOLLAR SIZE OF EACH CLASS WAS NOT AVAILABLE THE CLASS A1 A2 AND AS CERTIFICATES WERE RATED DOUBLEA BY BOTH FITCH AND S&P THE CLASS A1 FLOATINGRATE CERTIFICATES WERE PRICED TO FLOAT 150 BASIS POINTS ABOVE THE SIXMONTH LONDON INTERBANK OFFERED RATE AND HAVE AN AVERAGE LIFE OF 75 YEARS THE CLASS A2 FIXEDRATE CERTIFICATES WERE PRICED WITH A COUPON OF 7125 AND HAVE AN AVERAGE LIFE OF 75 YEARS THE CLASS AS CERTIFICATES WERE INTERESTONLY SECURITIES THE TWO CLASS B CERTIFICATES WERE RATED SINGLEA BY BOTH FITCH AND S&P THE CLASS B1 FLOATINGRATE CERTIFICATES WERE PRICED TO FLOAT 215 BASIS POINTS ABOVE SIXMONTH LIBOR THE CLASS B2 FIXEDRATE CERTIFICATES WERE PRICED WITH A COUPON OF 79 THE AVERAGE LIFE OF BOTH CLASSES IS 74 YEARS PACIFIC MUTUAL LIFE INSURANCE CO AN ORIGINATOR AND SERVICER OF MOBILEHOMEPARK LOANS IS SERVICING THE LOANS ON THE TRANSACTION BANKERS TRUST CO IS TRUSTEE FEDERAL NATIONAL MORTGAGE ASSOCIATION 640 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY LEHMAN BROTHERS THE OFFERING SERIES 1993122 IS BACKED BY THE SMBS 231 WHICH IN TURN IS BACKED BY 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 805 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 295 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1993G26 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 299 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 250 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY JP MORGAN SECURITIES INC THE OFFERING SERIES 1993123 IS BACKED BY THE AGENCY'S SEVENYEAR 65 BALLOON MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 66 YEARS DEPARTMENT OF VETERANS AFFAIRS 576 MILLION OF MORTGAGEBACKED PASSTHROUGH CERTIFICATES OFFERED BY UNDERWRITERS LED BY FIRST BOSTON CORP ACCORDING TO MCM CORPORATEWATCH THE OFFERING VENDEE MORTGAGE TRUST 19932 VINNIE MAC 19932 IS BACKED BY VA VENDEE LOANS AND HAS BEEN STRUCTURED WITH 13 CLASSES THE CLASSES WERE RATED TRIPLEA BY BOTH S&P AND MOODY'S BASED ON A FULLFAITHANDCREDIT GUARANTEE BY THE US GOVERNMENT THE DEAL INCLUDES FIVE SEQUENTIALPAY CLASSES TWO ACCRUAL CLASSES AND SIX CLASSES WITH GUARANTEED FINANCIAL MATURITIES A 42 MILLION A CLASS WAS PRICED AS 655S AT 102 10/32 TO YIELD 4451 A 38BASISPOINT SPREAD ABOVE THE TWOYEAR TREASURY NOTE THE SECURITIES HAVE AN AVERAGE LIFE OF 13 YEARS A 93 MILLION B CLASS WAS PRICED AS 675S AT 103 18/32 TO YIELD 5594 A 115BASISPOINT SPREAD ABOVE THE THREEYEAR THE SECURITIES HAVE AN AVERAGE LIFE OF 35 YEARS A 473 MILLION C CLASS WAS PRICED AS 625S AT 99 30/32 TO YIELD 629 A 112BASISPOINT SPREAD ABOVE THE TREASURY FIVEYEAR NOTE THE SECURITIES HAVE AN AVERAGE LIFE OF 58 YEARS A 606 MILLION D CLASS WAS PRICED AS 675S AT 100 26/32 TO YIELD 6661 A 110BASISPOINT SPREAD ABOVE THE TREASURY SEVENYEAR NOTE THE SECURITIES HAVE AN AVERAGE LIFE OF 78 YEARS A 828 MILLION E CLASS WAS PRICED AS 675S AT 98 23/32 TO YIELD 6984 A 105BASISPOINT SPREAD ABOVE THE TREASURY 10YEAR THE SECURITIES HAVE AN AVERAGE LIFE OF 108 YEARS OF THE ACCRUAL SECURITIES THE 497 MILLION CLASS ZA WAS PRICED AS 675S AT 88 27/32 TO YIELD 7619 AN 80BASISPOINT SPREAD ABOVE THE TREASURY 30YEAR BOND THE SECURITIES HAVE AN AVERAGE LIFE OF 158 YEARS THE 364 MILLION IN CLASS ZB SECURITIES WAS PRICED AS 675S AT 83 TO YIELD 7669 AN 85BASISPOINT SPREAD ABOVE THE TREASURY 30YEAR THE SECURITIES HAVE AN AVERAGE LIFE OF 24 YEARS OF THE GUARANTEEDFINANCIALMATURITY CLASSES THE 313 MILLION CLASS F SECURITIES WERE PRICED AS 675S AT 104 15/32 TO YIELD 4707 A 65BASISPOINT SPREAD OVER THE TREASURY TWOYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 24 YEARS THE 203 MILLION IN CLASS G CERTIFICATES WERE PRICED AS 675S AT 104 5/32 TO YIELD 5922 A 75BASISPOINT SPREAD ABOVE THE TREASURY FIVEYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 58 YEARS THE 196 MILLION IN CLASS H CERTIFICATES WERE PRICED AS 675S AT 102 22/32 TO YIELD 636 AN 80BASISPOINT SPREAD ABOVE THE TREASURY SEVENYEAR THE CERTIFICATES HAVE AN EIGHTYEAR AVERAGE LIFE THE 457 MILLION IN CLASS I CERTIFICATES WERE PRICED AS 675S AT 100 18/32 TO YIELD 6734 AN 80BASISPOINT SPREAD ABOVE THE TREASURY 10YEAR NOTE THE CERTIFICATES HAVE AN AVEARGE LIFE OF 109 YEARS THE 2446 MILLION IN CLASS J CERTIFICATES WERE PRICED AS 675S AT 99 4/32 TO YIELD 6914 A 98BASISPOINT SPREAD ABOVE THE TREASURY 10YEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 148 YEARS THE 209 MILLION IN CLASS K CERTIFICATES WERE PRICED AS 675S AT 96 2/32 TO YIELD 722 A 40BASISPOINT SPREAD OVER THE TREASURY 30YEAR BOND THE CERTIFICATES HAVE AN AVERAGE LIFE OF 179 YEARS BRITISH GAS INTERNATIONAL FINANCE UK PARENT 250 MILLION OF 625 EUROBONDS MATURING JULY 14 2003 AT ISSUE PRICE 10071 VIA BARCLAYS DE ZOETE WEDD AND GOLDMAN SACHS INTERNATIONAL REOFFERED AT 9906 TO YIELD 638 MARGIN 34 BASIS POINTS ABOVE EQUIVALENT 10YEAR US TREASURY BOND FEES TWO POINTS EUROPEAN INVESTMENT BANK SUPRANATIONAL 500 MILLION MARKS OF 6375 EUROBONDS DUE JULY 15 1998 AT ISSUE PRICE 10157 VIA DEUTSCHE GIROZENTRALEDEUTSCHE KOMMUNALBANK YIELD 639 AT COMANAGERS' BREAKEVEN PRICE FEES 1625 POINTS INTERAMERICAN DEVELOPMENT BANK SUPRANATIONAL 40 BILLION YEN OF 4375 EUROBONDS DUE JUNE 30 1998 REOFFERED AT 9985 VIA IBJ INTERNATIONAL LTD YIELD 477 AT REOFFER PRICE MARGIN 23 BASIS POINTS ABOVE COMPARABLE JAPANESE GOVERNMENT BOND FEES 025 POINT KOMMUNINVEST I SVERIGE AB SWEDEN 125 MILLION SWISS FRANCS OF 475 PUBLIC BONDS DUE JULY 20 1998 PRICED AT 101625 VIA CREDIT SUISSE FEES 1625 POINTS NESTLE ENTERPRISE SA SWITZERLAND 15 BILLION FRENCH FRANCS OF 65 EUROBONDS DUE JULY 15 1998 AT ISSUE PRICE 101459 VIA BANQUE NATIONALE DE PARIS REOFFERED AT 99834 TO YIELD 654 MARGIN SEVEN BASIS POINTS ABOVE TREASURY'S 95 NOTE DUE 1998 GUARANTOR NESTLE SA FEES 1875 POINTS TOHO REAL ESTATE CO JAPAN 50 MILLION OF 1 EUROBONDS DUE JULY 8 1997 WITH EQUITY PURCHASE WARRANTS ATTACHED AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD EACH 5000 BOND HAS ONE WARRANT ATTACHED EXERCISABLE FROM JULY 22 1993 TO JUNE 24 1997 TO BUY TOHO SHARES AT EXPECTED 25 PREMIUM ABOVE CLOSING SHARE PRICE JUNE 21 WHEN FINAL TERMS FIXED GUARANTOR SANWA BANK LTD FEES 225 POINTS U S WEST COMMUNICATIONS INC US 300 MILLION OF 5625 EUROBONDS DUE JULY 8 1998 AT ISSUE PRICE 101483 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 99908 TO YIELD 565 ANNUAL MARGIN 35 BASIS POINTS ABOVE US TREASURY FIVEYEAR NOTE FEES 1875 POINTS U S WEST COMMUNICATIONS IS A UNIT OF U S WEST INC 9306160086 930616 BUSINESS BRIEF CONWEST EXPLORATION CO MERGER WITH FARADAY VALUED AT 702 MILLION CONWEST EXPLORATION CO SAID IT HAS AGREED TO MERGE WITH ITS CONTROLLING SHAREHOLDER FARADAY RESOURCES INC IN A COMPLEX TRANSACTION THAT THE COMPANIES VALUE AT 90 MILLION CANADIAN DOLLARS US702 MILLION ALSO AS PART OF THE PROPOSED TRANSACTION CONWEST'S CURRENT TWOTIER SHARE STRUCTURE WHICH INCLUDES MULTIPLE AND SINGLEVOTING SHARES WILL BE REPLACED BY ONE CLASS OF COMMON STOCK CARRYING ONE VOTE PER SHARE AS A RESULT CONWEST WHICH WILL BE THE SURVIVING COMPANY WILL HAVE A SIMPLIFIED SHARE STRUCTURE AND GREATER MARKET LIQUIDITY SAID J ANDY PATTERSON CONWEST'S CHIEF FINANCIAL OFFICER UNDER TERMS OF THE PROPOSED DEAL CONWEST WILL ISSUE NEW SHARES TO FARADAY HOLDERS BUT WILL ALSO CANCEL THE CONWEST SHARES CURRENTLY HELD BY FARADAY WHOSE MAIN ASSET IS ITS 49 VOTING INTEREST IN CONWEST CONWEST HAS INTERESTS IN ENERGY AND MINING BOTH COMPANIES ARE BASED IN TORONTO 9306160085 930616 BUSINESS BRIEF NATIONAL SEMICONDUCTOR CORP NET INCOME INCREASED 68 IN FISCAL FOURTH QUARTER DRIVEN BY RECORD SALES WORLDWIDE AND IMPROVED GROSS MARGINS NATIONAL SEMICONDUCTOR CORP REPORTED A 68 INCREASE IN NET INCOME FOR THE FISCAL FOURTH QUARTER THE CHIP MAKER IN SANTA CLARA CALIF SAID NET FOR THE QUARTER ENDED MAY 30 WAS 462 MILLION OR 35 CENTS A SHARE COMPARED WITH 275 MILLION OR 22 CENTS A SHARE A YEAR EARLIER REVENUE CLIMBED 14 TO 5579 MILLION FROM 4915 MILLION THE RESULTS WERE BETTER THAN EXPECTED ACCORDING TO ANALYSTS SURVEYED BY ZACKS INVESTMENT RESEARCH INC WHICH FORECAST A HIGH OF 31 CENTS A SHARE THE STOCK CLOSED AT 1575 A SHARE UP 50 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE THE COMPANY SAID HIGH PRICES HEAVY BOOKINGS AND SALES ACROSS THE PRODUCT LINE AND AROUND THE WORLD POWERED THE RESULTS THE COMPANY SAID IT IS TWO YEARS INTO A THREEYEAR RESTRUCTURING PLAN WHICH HAS CUT ALMOST 4000 JOBS WORLDWIDE THIS YEAR AND WILL ULTIMATELY HALVE MANUFACTURING PLANTS TO SEVEN GROSS MARGINS IMPROVED TO 345 FROM 301 A YEAR EARLIER 9306160084 930616 BUSINESS BRIEF GLENFED INC RIGHTS OFFERING IS PLANNED IN BID TO RAISE 425 MILLION GLENFED INC THE PARENT COMPANY OF GLENDALE FEDERAL BANK SAID IT INTENDS TO MAKE A RIGHTS OFFERING OF COMMON STOCK AS PART OF A PLAN TO RAISE AS MUCH AS 425 MILLION IN CAPITAL THAT IT NEEDS TO SURVIVE THE PLAN SUBJECT TO REGULATORY AND SHAREHOLDER APPROVAL MAY BE GLENFED'S LAST CHANCE TO AVERT SEIZURE BY THE OFFICE OF THRIFT SUPERVISION WHICH IMPOSED A JUNE 30 DEADLINE FOR GLENFED TO SIGNIFICANTLY INCREASE ITS CAPITAL OR FIND A BUYER UNDER A RIGHTS OFFERING EXISTING SHAREHOLDERS CAN INVEST MORE MONEY IN A COMPANY OR FACE DILUTION ONCE SUCH RIGHTS ARE EXERCISED BY OTHER INVESTORS THE TERMS OF THE PLAN CALL FOR THE MERGER OF GLENFED INTO GLENDALE FEDERAL AND THE ISSUANCE OF FOUR SHARES OF GLENDALE COMMON STOCK PLUS 22 RIGHTS TO BUY ADDITIONAL GLENDALE STOCK FOR EVERY 100 COMMON SHARES OF GLENFED OUTSTANDING EXISTING GLENFED DEBT AND PREFERRED STOCK WOULD BE CONVERTED TO GLENDALE EQUITY GLENFED IS BASED IN GLENDALE CALIF 9306160083 930616 REVIEW & OUTLOOK EDITORIAL ASIDES TAXES TO THE HORIZON LAURA TYSON HEAD OF THE ADMINISTRATION'S COUNCIL OF ECONOMIC ADVISERS HAS CAUGHT THE STOCKMAN SYNDROME DAVID STOCKMAN THE FORMER REAGAN OMB DIRECTOR ONCE TALKED ABOUT DEFICITS AS FAR AS THE EYE CAN SEE NOW ALONG COMES MS TYSON PREDICTING TAXES AS FAR AS THE EYE CAN SEE IN A SPEECH YESTERDAY SHE WORRIED ABOUT THE PROSPECT OF HIGHER OUTLAYS FOR HEALTH DOWN THE ROAD AND RAISED THE POSSIBILITY OF PURSUING MORE DEFICIT REDUCTION AFTER 1997 WITH CONSUMPTION TAXES OR ESTATE TAXES MS TYSON CAN PEDDLE TAXES AS HARD AS SHE WANTS BUT WE DON'T THINK SHE'LL EVER REACH THAT HORIZON 9306160082 930616 LETTERS TO THE EDITOR SCIENCE AND RELIGION STILL SEARCHING PHILLIP E JOHNSON'S MAY 10 EDITORIALPAGE ARTICLE SCIENCE WITHOUT GOD IN WHICH HE CRITICIZES STEVEN WEINBERG'S BOOK DREAMS OF A FINAL THEORY MISSES THE MARK ON AT LEAST TWO MAJOR POINTS FIRST MR JOHNSON COMPLAINS THAT SCIENCE CONFLICTS WITH RELIGION MODERN SCIENCE HAS BEEN IN TROUBLE WITH THE LIKES OF MR JOHNSON FOR OVERTHROWING RELIGIOUS IDEAS SINCE ITS BEGINNING WITH COPERNICUS KEPLER AND GALILEO THE SAVING GRACE OF WESTERN CIVILIZATION IS THAT SCIENCE HAS EVENTUALLY OVERCOME RELIGIOUS OPPOSITION ALL SOCIETIES THAT REJECTED SCIENTIFIC RATHER THAN RELIGIOUS IDEAS WHEN THERE WAS A CONFLICT HAVE DECLINED MR JOHNSON'S SECOND MAJOR ERROR IS IN HIS CLAIM THAT IT IS LACK OF RELIGION THAT DIVIDES PEOPLE HE SAYS NATURALISTIC METAPHYSICS DOES NOT PROVIDE THE SHARED VALUES RELIGION PROVIDES ON THE CONTRARY ONE HAS ONLY TO LOOK TO THE POINTS AROUND THE WORLD THAT APPEAR IN THE NEWS MOST OFTEN AND OBSERVE RELIGIONS FOUNDED ON VALUES THAT EACH SIDE CONSIDERS SACRED TO APPRECIATE THE FACT THAT SACRED VALUES ARE NOT NECESSARILY SHARED SCIENCE HAS BEEN PROVED FAR SUPERIOR TO RELIGION IN SHOWING US HOW BEST TO ACHIEVE THE VALUES MOST PEOPLE HOLD THIS IS EXACTLY WHY WESTERN CULTURE IS CATCHING ON EVERYWHERE IN THE WORLD MR JOHNSON THEN ASKS IS IT ANY WONDER THAT THE GREAT UNIVERSITIES THAT ARE PERMEATED BY THIS PHILOSOPHY ARE THEMSELVES BEING TORN APART THIS IS PARTICULARLY RIDICULOUS SINCE OUR GREAT UNIVERSITIES ARE FAR FROM PERMEATED WITH REDUCTIONIST SCIENTISTS THEY ARE COMPOSED ALMOST ENTIRELY OF FACULTY MEMBERS WHO ARE INNUMERATE REQUIRING EDUCATION IN MATHEMATICS AND SCIENCE TO ATTEND AND TEACH IN OUR GREAT UNIVERSITIES PARTICULARLY OUR LAW SCHOOLS WOULD DO WONDERS MR JOHNSON CONCLUDES WITH DREAMS OF A FINAL THEORY' PROVIDES NOT A VISION OF THE FUTURE BUT A LAST FLICKER OF THE DYING FLAME OF ENLIGHTENMENT RATIONALISM PERHAPS THIS IS THE LAST FLICKER PERHAPS THE BARBARIANS GATHERING AT THE LAW SCHOOL GATES WILL DESTROY THE GREATEST HERITAGE OF WESTERN CIVILIZATIONREASON WHICH IS THE BASIS FOR OUR DEMOCRATIC TRADITIONS AFTER ALL OUR LAW SCHOOLS WELCOME THOSE WHO GO EVEN FURTHER THAN MR JOHNSON IN DENYING REASON DECONSTRUCTIONISM A SCHOOL OF LITERARY CRITICISM THAT DENIES OBJECTIVE REALITY IS IN VOGUE AT OUR MOST PRESTIGIOUS LAW SCHOOLS AS A VALID METHOD OF LEGAL ANALYSIS A FEB 19 1979 TIME MAGAZINE ARTICLE ON ALBERT EINSTEIN QUOTED HIM AS HAVING SAID EVERYONE WHO IS SERIOUSLY INVOLVED IN THE PURSUIT OF SCIENCE BECOMES CONVINCED THAT A SPIRIT IS MANIFEST IN THE LAWS OF THE UNIVERSE A SPIRIT VASTLY SUPERIOR TO THAT OF MAN AND ONE IN THE FACE OF WHICH WE WITH OUR MODEST POWERS MUST FEEL HUMBLE MR JOHNSON SEEMS TO SAY THAT PHYSICISTS ARE TRYING TO REPLACE CLASSICAL FORMS OF THEOLOGY WITH THE NEW THEOLOGY OF RATIONALISM I DISPUTE HIS THESIS THAT THERE IS AN EQUATION BETWEEN SCIENCE AND THEOLOGY SCIENCE TRIES TO PROVE NOTHING BUT SEEKS TO FIND OUT WHAT IS BASED ON OBJECTIVE INFORMATION OBTAINED THROUGH THE SENSES ITS MAIN TOOL IS MATHEMATICS WHICH IS USED TO CONSTRUCT MODELS OF REALITY WHEN SUCH A MODEL MIRRORS REALITY AS OBSERVED IT IS ACCEPTED AS THEORY A CORRECT MODEL OFTEN SUGGESTS THE PRESENCE OF OTHER ASPECTS OF REALITY NOT NECESSARILY CONCEIVED OF BY THE MODEL MAKER HE THEN TESTS REALITY TO SEE IF THIS ASPECT EXISTS SCIENTISTS REALIZE THAT OBJECTIVE SENSORY OBSERVATION IS GREATLY FLAWED AS OUR CENTRAL NERVOUS SYSTEMS TRY TO MANAGE AND INTEGRATE INCOMING DATA BUT SENSORY EXPERIENCE MUST HAVE SOME VALIDITY IF IT HAS NONE THEN SCIENTISTS HAVE BUILT ATOM BOMBS BY PURE CHANCE THEOLOGY ON THE OTHER HAND IS BASED ON A POSTULATE OF GOD OR A SUPPOSED COGNITION THAT EXISTS WHERE AND THAT EXPLAINS AND GIVES PURPOSE TO ALL THINGS INCLUDING LIFE IT IS A POSTULATE BASED TOTALLY ON IMAGINATION AND WISH AND IS WITHOUT ANY OBJECTIVELY OBSERVED FACTUAL BASIS REDUCTIONIST SCIENCE HAS MADE VAST STRIDES IN THE PAST 400 YEARS BUT IT HAS NOW HIT THE BRICK WALL OF THE BIG BANG MOST PHYSICISTS ADMIT THEIR STANDARD MODEL CANNOT EXPLAIN IT ONE EXAMPLE IF ALL THE MASS OF THE UNIVERSE WERE PACKED INTO THAT ONE DIMENSIONLESS POINT JUST BEFORE THE BIG BANG GRAVITATIONAL ATTRACTION WOULD BE INTENSE BEYOND COMPREHENSION HOW THEN TO EXPLAIN A MOMENTARY SUSPENSION OF THAT ATTRACTIVE FORCE SUDDENLY REVERSED INTO AN INCREDIBLY HUGE EXPLOSIVE FORCE FOLLOWED AT ONCE BY THE REEMERGENCE OF GRAVITY AN ACT OF GOD PERHAPS EVERYTHING I'VE READ SAYS THE PHYSICS OF SPACE TIME AND MASS BEGINS ONLY AFTER THAT ACT OF CREATION MEANWHILE QUANTUM MECHANICS ITSELF CONTAINS AS MUCH MYSTERY AS THEOLOGY EVER DID HOW TO EXPLAIN VIRTUAL PARTICLES THAT COME OUT OF NOWHERE AND THEN GO BACK AGAIN THEN TOO PARTICLE PHYSICISTS INFORM US THAT MATTER ITSELF IS REALLY 999999 N EMPTY SPACE MATTER IS OTHERWISE SIMPLY DIMENSIONLESS BITS OF ENERGY SPINNING THIS WAY OR THAT COMBINED WITH THE ELECTROMAGNETIC FORCE AND THE HUMAN MIND SUCH ENERGY GIVES OFF AN ILLUSION OF SUBSTANCE WHEN WE OBSERVE IT A NEUTRINO HOWEVER EXPERIENCES ONLY THE EMPTY SPACE THEN TOO TODAY'S STANDARD MODEL SURVIVES MAINLY BY THE MATHEMATICS OF RENORMALIZATION A PROCESS MOST ACCOUNTANTS CALL COOKING THE BOOKS FOR REAL MYSTERY CONSIDER SPOOKY ACTION AT A DISTANCE WHEREBY SPLIT PARTICLES SEEM TO SURPASS THE SPEED OF LIGHT AND RESPOND INSTANTLY TO FAROFF EVENTS SOMETHING OUT OF THE IMPLICATE ORDER AGAIN WHO KNOWS PHYSICISTS DON'T I FIND IT STRANGE THAT MR JOHNSON SEEMS TO PINE FOR THE TIME WHEN THEOLOGY WAS QUEEN OF THE SCIENCES WE REMEMBER MUCH OF THAT TIME AS THE DARK AGES DURING THE REFORMATION WHEN THE SCIENTIFIC REVOLUTION HAD YET TO END THEOLOGY'S REIGN CHRISTIANS WERE UNITED IN REJECTING THE COPERNICAN THEORY OF THE SOLAR SYSTEM IS THIS RELIGIOUS UNITY THE SACRED COMMON GROUND MR JOHNSON DESIRES MARTIN LUTHER RIDICULED COPERNICUS AND THE HELIOCENTRIC THEORY OF THE SOLAR SYSTEM WAS NOT TAUGHT IN THE EVANGELICAL UNIVERSITIES OF NORTHERN EUROPE FOR 200 YEARS JOHN CALVIN INSISTED ON BIBLICAL GROUNDS THAT THE EARTH DID NOT MOVE AND HAD MICHAEL SERVETUS WHO PUBLISHED THE FIRST BOOK DESCRIBING THE PULMONARY CIRCULATION OF THE BLOOD BURNED AT THE STAKE THE CATHOLIC CHURCH IMPRISONED GALILEO THE GREATEST SCIENTIST OF HIS AGE I THINK I WILL STICK WITH THE SCIENCE WE HAVE THANK YOU LIVING THINGS CANNOT BE ADEQUATELY DESCRIBED SOLELY BY THE LAWS OF PHYSICS BECAUSE THEY ARE IN FACT HIGHLY ORDERED SYSTEMS OF DISTINCT MOLECULES AS SUCH THEY HAVE SYSTEMIC PROPERTIES NOT PRESENT IN THEIR COMPONENTS ALONE THIS NEITHER DEMEANS THE MIRACLE OF LIFE NOR RENDERS LIFE IMMUNE TO PHYSICAL LAW IT SIMPLY EXTENDS SCIENCE TO STUDYING THE SPECIFIC PROPERTIES OF ORGANIZED MATTER MORALITY AND SPIRITUALITY ARE NEITHER UNREAL NOR SUPERNATURAL THEY ARE PROPERTIES OF ORGANISMS INTRICATE ENOUGH TO HAVE MORAL AND SPIRITUAL PROBLEMS HUMAN BEINGS PARTICULAR CLAIMS OF SPECIFIC RELIGIONS EG THAT THE EARTH WAS CREATED IN SEVEN DAYS MAY WELL BE DEMOLISHED BY SCIENCE AND THIS WILL UPSET RELIGIOUS PEOPLE WHO BASE THEIR BELIEFS ON THOSE CLAIMS MORALITY AND RELIGION THEMSELVES HOWEVER WILL EXIST AS LONG AS REASONING BEINGS EXIST THE SCIENTIFIC COMMUNITY RECOGNIZES THAT ITS OWN THEORIES DEVELOP AND CHANGE AS NEW RESEARCH YIELDS AN EXPANDED KNOWLEDGE OF VARIOUS PHENOMENA YET IT ASSUMES THEOLOGY REMAINS WITHIN A STATIC SET OF INALTERABLE PRECEPTS IF AN UNDERSTANDING OF GOD IS CONFINED TO MICHELANGELO'S PICTORIAL REPRESENTATION ON THE SISTINE CHAPEL CEILING THERE CAN BE NO COMMON GROUND BETWEEN PHYSICAL THEORISTS AND THEOLOGIANS AND YET MANY RELIGIOUS THINKERS ENVISION GOD NOT AS AN ANTHROPOMORPHIC DEITY BUT AS AN ETERNAL AND EVER PRESENT PRINCIPLE HOW FAR IS THIS FROM ADVANCED SCIENTIFIC THOUGHT ISN'T THE QUEST FOR A FINAL THEORY BASED ON AN ASSUMPTION THAT THERE IS A RATIONAL UNDERSTANDABLE AND ONGOING ORDER TO THE UNIVERSE THERE MIGHT EVEN BE SOME AGREEMENT BETWEEN THESE TWO ANTAGONISTIC GROUPS THAT THE NATURE OF THIS ETERNAL PRINCIPLE IS LIFE AND PERHAPS EVEN TRUTH WHERE THE BATTLE RAGES MOST VIOLENTLY IS IN AND AROUND THE LEAST QUANTIFIABLE ELEMENTS OF A DIVINE PRINCIPLE LOVE BEAUTY SOUL AND GRACE IF SCIENCE WILL NOT CONSIDER THEOLOGY PERHAPS IT OUGHT TO GLANCE AT THE ARTS ARTISTIC EXPRESSIONS TRANSCEND THE OBJECTIVE COMPONENTS OF COLOR AND SOUND AND ENCOMPASS SOMETHING FAR MORE PROFOUND TWENTIETHCENTURY SCIENCE IS IN A FAUSTIAN PREDICAMENT TO UNDERSTAND THE UNIVERSE ON A STRICTLY MATERIAL BASIS IS TO FORFEIT THE JOYS OF THE MORAL AND SPIRITUAL REALM 9306160081 930616 USF&G AND GROUP OF INVESTORS ESTABLISH CATASTROPHE REINSURER NEW YORK USF&G CORP AND A GROUP OF INVESTORS LED BY EM WARBURG PINCUS & CO AND GENERAL ELECTRIC CO FORMED A PROPERTY CATASTROPHE REINSURER THE LATEST OF SEVERAL NEW ENTRANTS INTO THE MARKET THE COMPANY RENAISSANCE REINSURANCE LTD BEGINS OPERATIONS WITH 140 MILLION OF CAPITAL AND HOPES OF HELPING TO SUPPLY THE GROWING DEMAND FOR REINSURANCE AGAINST LOSSES ON HURRICANES AND OTHER CATASTROPHES USF&G CORP A BALTIMOREBASED INSURANCE COMPANY INVESTED 20 MILLION IN RENAISSANCE ORGANIZED THE VENTURE AND SUPPLIED MANAGEMENT JAMES STANARD WHO FORMERLY HEADED USF&G'S REINSURANCE BUSINESS IS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE BERMUDABASED NEW COMPANY USF&G WILL HAVE NO CONTINUING OPERATING INVOLVEMENT IN THE COMPANY OTHER THAN REPRESENTATION ON ITS BOARD OF DIRECTORS WARBURG PINCUS INVESTORS LP AN INVESTMENT PARTNERSHIP CREATED BY WARBURG PINCUS A NEW YORK FINANCIAL SERVICES FIRM INVESTED 70 MILLION IN RENAISSANCE GENERAL ELECTRIC PENSION TRUST THE PENSION FUND FOR GE EMPLOYEES INVESTED 25 MILLION AS DID GENERAL ELECTRIC PRIVATE PLACEMENT PARTNERS I LP AN INVESTMENT PARTNERSHIP SET UP BY GE THIS BUSINESS IS BETWEEN 150 TO 300 MORE PROFITABLE THAN IT WAS A FEW YEARS AGO SAID WOLFE BRAGIN A REGIONAL VICE PRESIDENT OF GENERAL ELECTRIC INVESTMENT CORP A FINANCIAL UNIT OF GE OVERSEEING THE INVESTMENT IN RENAISSANCE OTHER INVESTORS INCLUDE GENERAL RE CORP AMERICAN INTERNATIONAL GROUP INC AND MARSH & MCLENNAN COS 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 9306160080 930616 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN BRITAIN'S NEW CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE SAID COMBATING INFLATION WILL BE A CENTRAL PART OF HIS DRIVE FOR SUSTAINED AND DURABLE ECONOMIC GROWTH IN HIS FIRST MAJOR POLICY STATEMENT SINCE HE WAS APPOINTED LAST MONTH MR CLARKE SAID THE UK ECONOMY IS ON THE MEND AFTER ALMOST THREE YEARS OF RECESSION BUT HE VOWED VIGILANCE TO KEEP IT ON TRACK DASHING HOPES FOR INTERESTRATE CUTS SOON POLICY HAS TO BE DIRECTED TO ACHIEVING THE GOVERNMENT'S INFLATION TARGET OF LIMITING ANNUAL INCREASES IN CONSUMER PRICES TO A RANGE OF 1 TO 4 HE SAID HE DECLARED READINESS TO CONSIDER TAX INCREASES AS WELL AS SPENDING CUTS IF NEEDED TO HOLD DOWN THE BALLOONING GOVERNMENT DEFICIT THOUGH MR CLARKE'S INFLATION PRIORITY IS LIKELY TO DISAPPOINT STOCK INVESTORS HIS APPARENT REJECTION OF LOWER INTEREST RATES COULD BOLSTER THE POUND AND HIS EMBRACE OF BUSINESSORIENTED POLICIES MAY HEARTEN TRADITIONAL SUPPORTERS OF PRIME MINISTER JOHN MAJOR'S CONSERVATIVE PARTY RETAIL SALES GROWTH IN CHINA NOTCHED A RECORD IN MAY FOR THE SECOND CONSECUTIVE MONTH THE CONSUMER BUYING FRENZY IS AN ATTEMPT TO BEAT FEARED INFLATION AND A FURTHER CURRENCY DEVALUATION SALES SOARED 27 TO 1094 BILLION YUAN 1913 BILLION FROM A YEAR EARLIER THE BIGGEST INCREASE SINCE SIMILAR PANIC BUYING IN 1989 THE CHINA DAILY SAID INFLATION THIS YEAR THROUGH MAY IN MEDIUMSIZE AND BIG CITIES RAN AT A 167 ANNUAL PACE WHILE THE YUAN HAS LOST MORE THAN 40 OF ITS VALUE SINCE MARCH IN THE FIRST FIVE MONTHS RETAIL SALES JUMPED 20 TO 5255 BILLION YUAN NORTH KOREAN FACTORIES ARE PRODUCING AT LESS THAN 50 OF CAPACITY SOUTH KOREA'S YONHAP NEWS AGENCY SAID QUOTING AN INSTITUTE LINKED TO THE RUSSIAN ACADEMY OF SCIENCES WHICH BLAMED CHRONIC ENERGY SHORTAGES COAL PRODUCTION FELL 50 LAST YEAR AND POWER PLANTS MET JUST HALF THE UTILITY NEEDS OF THE NATION'S 22 MILLION PEOPLE ELECTRICITY IS CUT OFF THREE OR FOUR DAYS A WEEK TO HOMES AND SUSPENDED TO FARMS WITH GASOLINE SCARCE DRIVING OUTSIDE PYONGYANG THE CAPITAL IS RESTRICTED PRODUCTION OF PETROLEUM PRODUCTS LAST YEAR MET 33 OF NEEDS CEMENT 50 FERTILIZER 63 AND IRON AND STEEL 33 SLOVAKIA SIGNED AN ECONOMIC POLICY AGREEMENT WITH THE INTERNATIONAL MONETARY FUND THE ACCORD REQUIRES KEEPING THE BUDGET DEFICIT TO LESS THAN 5 OF THE TOTAL VALUE OF GOODS AND SERVICES PRODUCED IN THE COUNTRY IT ALSO REQUIRES SPEEDIER PRIVATIZATIONS AND PRESERVATION OF HARDCURRENCY RESERVES IN SLOVAKIA FORMED JAN 1 WHEN CZECHOSLOVAKIA WAS DISSOLVED EXPECTED IMF BOARD APPROVAL OF THE PACT WILL ALLOW SLOVAKIA TO OBTAIN LOANS AT FAVORABLE RATES AND CREDITS TO SUPPORT ECONOMIC DEVELOPMENT MALAYSIA SELECTED FOUR LOCAL COMPANIES WHICH IT DIDN'T IDENTIFY TO FORM A CONSORTIUM TO OPERATE THE COUNTRY'S SECOND COMMERCIAL TELEVISION STATION TV4 NINE COMPANIES HAD ENTERED BIDS FOR THE LICENSE THE INFORMATION MINISTRY SAID TV4 PROBABLY WILL BE THE LAST COMMERCIAL STATION ALLOWED THE GOVERNMENT RUNS TV1 AND TV2 AND FIRMS SET UP BY MALAYSIA'S RULING COALITION PARTIES OPERATE THE PRIVATE TV3 TV4'S LAUNCH IS EXPECTED IN JANUARY INITIALLY RESTRICTED TO THE KLANG VALLEY AREA WITH HALF THE COUNTRY'S VIEWERS HONG KONG DESIGNATED LAND AS A ZONE FOR THE CHEMICAL INDUSTRY WITH STORAGE MANUFACTURING AND OTHER FACILITIES NEEDED FOR COMPANIES' OPERATIONS TO BE PROVIDED THE 50ACRE SITE IN THE BRITISH COLONY'S NORTHWEST TUEN MUN AREA IS PART OF A PLANNED SPECIAL ZONE FOR INDUSTRIES RECLAMATION FOR THE COASTAL PROJECT IS EXPECTED TO BEGIN IN MID1994 WITH COMPLETION SCHEDULED IN STAGES BY 1999 TOKYO AND OSAKA JAPAN REMAIN THE MOST EXPENSIVE CITIES WORLDWIDE FOR FOREIGNERS IN DOLLAR TERMS WHILE MOSCOW RANKED FIFTH A SEMIANNUAL SURVEY FOUND THE TALLY BY CONSULTANTS CORPORATE RESOURCES GROUP IN GENEVA EXAMINED 151 ITEMS INCLUDING FOOD CLOTHING AND TRANSPORTATION BUT EXCLUDING HOUSING THE BASE OF 100 IS NEW YORK WHICH RANKED 33RD AFTER THE TWO JAPANESE CITIES THE MOST EXPENSIVE WERE LIBREVILLE GABON AND BRAZZAVILLE CONGO MOSCOW WAS NEXT BASED ON PRICES IN HARDCURRENCY STORES TOPPING TRADITIONALLY COSTLY SCANDINAVIAN CAPITALS WESTERN EUROPE CONTINUED TO BE MORE EXPENSIVE THAN THE US WHILE CANADA AND LATIN AMERICA WERE COMPARATIVELY INEXPENSIVE IN THE WESTERN HEMISPHERE ONLY NO 10 BUENOS AIRES WAS MORE EXPENSIVE THAN NEW YORK COSTS IN ASIA ROSE RANKING TAIPEI AT NO 6 BEIJING AT 13 AND SEOUL AND HONG KONG IN A TIE FOR 14 AMONG THE LEAST COSTLY CITIES HARARE ZIMBABWE BOMBAY INDIA ASUNCION PARAGUAY AND NAIROBI KENYA THE HENRI MATISSE MUSEUM IN NICE FRANCE WILL REOPEN JUNE 26 FOLLOWING A SIXYEAR 10 MILLION RENOVATION EXHIBITION SPACE WAS DOUBLED WITH AN ADDITION TO THE 17THCENTURY VILLA OVERLOOKING THE RIVIERA CITY WHERE THE ARTIST LIVED 16 YEARS BEFORE HIS DEATH IN 1954 TOSSING A COIN INTO THE TREVI FOUNTAIN IN ROME IS SAID TO ENSURE A VISITOR'S RETURN BUT RETRIEVING THE MONEY WAS EXPENSIVE REQUIRING WEEKLY DRAINING AND REPLACEMENT OF THE CHEMICALLY TREATED WATER NOW A PUMP VACUUMS THE COINS OUT THE MONEY STILL GOES TO ITALY'S RED CROSS 9306160079 930616 CLINTON CLOSE TO APPROVING LESS POWERFUL SPACE STATION WASHINGTON THE WHITE HOUSE APPEARS PREPARED TO EMBRACE A MODIFIED VERSION OF THE SPACE STATION THAT WOULD SACRIFICE SOME OF THE POWER OF THE CURRENT DESIGN BUT STILL WOULD COST NEARLY 22 BILLION ANNUALLY OVER THE NEXT FIVE YEARS PRESIDENT CLINTON SIGNALED YESTERDAY THAT A FINAL DECISION IS IMMINENT IN ANTICIPATION OF AN ANNOUNCEMENT VICE PRESIDENT AL GORE MET PRIVATELY THIS WEEK WITH THE DEMOCRATIC CHAIRMEN OF HOUSE AND SENATE SCIENCE AND APPROPRIATIONS COMMITTEES THE COSTLY PROJECT FACES A STRONG CHALLENGE NEXT WEEK IN THE HOUSE WHERE OPPONENTS HOPE TO CUT THE PROPOSED FUNDING LEVEL IN THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION'S AUTHORIZATION BILL A PRESIDENTIAL DECISION IS SEEN AS CRUCIAL TO HOLDING THE VOTES OF NERVOUS FRESHMEN DEMOCRATS LOOKING FOR BUDGET TARGETS PROPONENTS ARE SCRAMBLING TO CONSOLIDATE THEIR POSITION IN ANTICIPATION OF WHAT MAY BE A TOUGHER FIGHT THIS SUMMER ON NASA'S DIRECT APPROPRIATIONS FOR ALL THE FOCUS ON CONSTRUCTION THE TRUE SAVINGS PROMISED BY THE ADMINISTRATION WILL DEPEND LESS ON CHANGES IN HARDWARE THAN IN THE STATION'S OPERATIONS AND MANAGEMENT 9306160078 930616 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB THERE'S ONE DEFICIT PRESIDENT CLINTON IS FAILING TO ADDRESS IT'S THE DEFICIT IN NATIONAL SPIRIT THAT IS NOW CLEAR FROM THE DISTRESSING CONTORTIONS IN CONGRESS TO PRODUCE A PLAN TO CUT THE FEDERAL BUDGET DEFICIT THE WHOLE EXERCISE IS STEADILY EVOLVING INTO A CLASSIC CASE OF SPECIALINTEREST WARFARE WITH VICTORY GOING TO THE INTEREST GROUPS THAT OUTMUSCLE THEIR FOES WHAT'S MISSING IS A SENSE THAT ANY OF THESE GROUPS ARE GIVING MORE THAN A PASSING THOUGHT TO THE NATIONAL INTEREST OR HARBORING ANY WILLINGNESS TO SACRIFICE FOR THE COMMON GOOD IT FALLS TO A PRESIDENT TO RISE ABOVE THE FRAY AND INSPIRE OR IF NECESSARY EMBARRASS SPECIAL INTERESTS INTO KEEPING THOSE LOFTIER GOALS IN MIND DOING SO IN FACT IS ONE OF THE FEW UNIQUE POWERS A PRESIDENT POSSESSES TRUMAN WAS QUITE RIGHT WHEN HE DECLARED THAT PRESIDENTIAL POWER IS THE POWER TO PERSUADE NOTES HARVARD SCHOLAR RICHARD NEUSTADT IN HIS CLASSIC BOOK PRESIDENTIAL POWER IF MR CLINTON WANTS TO REMIND THE COUNTRY THAT LAST YEAR'S ELECTION WAS ABOUT GETTING OUT OF PRECISELY THIS KIND OF POLITICAL RUT THE TIME FOR PERSUADING IS NOW OTHERWISE THE WHOLE BUDGET EXERCISE WILL TURN INTO JUST THE KIND OF FRUITLESS GAME THAT PRODUCED A 290 BILLION DEFICIT IN THE FIRST PLACE HERE'S HOW THE GAME WORKS AS A CORNERSTONE OF HIS ECONOMIC PLAN MR CLINTON PROPOSED A BROADBASED ENERGY TAX THAT WOULD PRODUCE 73 BILLION OVER FIVE YEARS FARMERS UTILITIES OIL COMPANIES JUST ABOUT ANY GROUP WITH A DECENT SET OF LOBBYISTS WON EXEMPTIONS REPUBLICANS AND CONSERVATIVE DEMOCRATS PUSHED FOR KILLING THE ENTIRE ENERGY TAX INSISTING THAT A SIMILAR AMOUNT OF MONEY COULD BE GENERATED WITH A VAGUE BUT SENSIBLESOUNDING CAP ON ENTITLEMENT PROGRAMS IN THE FACE OF THIS ASSAULT MR CLINTON ABANDONED HIS BROADBASED ENERGY TAX ENTIRELY AND IS SEARCHING FOR AN ALTERNATIVE ALONG THE WAY MILLIONS OF AMERICANS WHO HAVE BEEN DEMAGOGUED INTO BELIEVING THAT THE DEFICIT CAN BE WIPED OUT MAGICALLY WITH SPENDING CUTS THAT WON'T AFFECT THEM DID THE PREDICTABLE THING THEY STOOD ON THE SIDELINES AND ROOTED AGAINST TAX INCREASES BUT NOW IT HAS DAWNED ON MILLIONS OF SENIOR CITIZENS THAT THE ALTERNATIVE TO THE ENERGY TAX THE ENTITLEMENT CAP TRANSLATES INTO BILLIONS OF DOLLARS IN CUTS IN THEIR CHERISHED MEDICARE HEALTH PROGRAM SO AS THE ENERGY SPECIAL INTERESTS TOTE THE REMAINS OF THE CLINTON ENERGY TAX OFF THE BATTLEFIELD LOBBYISTS FOR THE ELDERLY ARE WHEELING IN TO TAKE THEIR PLACE THEIR GUNS BLAZING AWAY AT ENTITLEMENT CUTS THE GAME ROLLS ON THE DEFICIT GROWS WHY DOES IT WORK THIS WAY ONE REASON IS A SEVERE SHORTAGE OF TRUTH IN POLITICS REPUBLICANS HAVE SPENT MUCH OF THIS YEAR CREATING THE IMPRESSION THAT THE DEFICIT CAN BE VANQUISHED IF CONGRESS AND PRESIDENT CLINTON WOULD JUST GET SERIOUS ABOUT TRIMMING THAT WASTEFUL FEDERAL BUREAUCRACY THAT WOULD BE NICE IF IT WERE TRUE BUT IT ISN'T IF EVERY FEDERAL EMPLOYEE FROM GEN COLIN POWELL DOWN TO THE LOCAL MAILMAN WERE FIRED TOMORROW THERE STILL WOULD BE A FEDERAL DEFICIT EXCEEDING 50 BILLION AT YEAR'S END THE BIG MONEY IS IN ENTITLEMENTS AND THAT MEANS SOCIAL SECURITY MEDICARE AND MEDICAID SOMETHING MOST REPUBLICANS CONVENIENTLY AVOID MENTIONING A LAUDABLE EXCEPTION IS REP JOHN KASICH THE RANKING REPUBLICAN ON THE HOUSE BUDGET COMMITTEE WHO PRODUCED A DETAILED DEFICITCUTTING PLAN THAT LAYS OUT EVEN PAINFUL DETAILS ROSS PEROT HAS BEEN ONLY A LITTLE BETTER HIS PLAN TO WIPE OUT THE DEFICIT REQUIRES FINDING A WHOPPING BUT UNSPECIFIED 141 BILLION IN MEDICARE AND MEDICAID COST CONTAINMENT MR CLINTON IS CULPABLE FOR HIS OWN SINS CUTS IN THE BUREAUCRACY AND DISCRETIONARY SPENDING PROGRAMS WHILE NOT SUFFICIENT TO CONQUER THE DEFICIT ARE NONETHELESS IMPORTANT BOTH TO SHRINK THE BUDGET AND TO SHOW THAT THE GOVERNMENT IS SACRIFICING ALONG WITH ITS CITIZENS AND MR CLINTON DIDN'T PRODUCE SPENDING CUTS AS DEEP OR IMMEDIATE AS HIS OWN RHETORIC IMPLIES AND NEVER REALLY FOLLOWED THROUGH ON A FEBRUARY PROMISE TO PRODUCE MORE CUTS IF THAT'S WHAT CONGRESS WANTED BUT WHAT'S REALLY MISSING RIGHT NOW IS A ROUSING CALL FROM THE PRESIDENT TO THE COUNTRY TO RISE ABOVE PAROCHIAL INTERESTS MAYBE AN ENERGY TAX ISN'T WHAT THE COUNTRY WANTS THOUGH A WALL STREET JOURNAL/NBC NEWS POLL INDICATES THAT VOTERS VASTLY PREFER THAT TO ENTITLEMENT CUTS MAYBE A BETTER MIX OF ENERGY TAXES AND MEDICARE CURBS CAN BE FOUND WHATEVER THE FORMULA MR CLINTON NEEDS TO GET HIMSELF ONTO AMERICANS' TELEVISION SETS TO DECLARE THAT THIS CAN'T BECOME A GAME IN WHICH THE PRIZE SIMPLY GOES TO THE MOST POWERFUL SPECIAL INTEREST THAT'S THE KIND OF MESSAGE HE WAS GOOD AT DELIVERING IN THE CAMPAIGN IT'S UNCLEAR WHERE THAT VOICE HAS GONE NOW 9306160077 930616 KODAK TO SHED CHEMICAL UNIT IN RESTRUCTURING SPINOFF IS EXPECTED AT END OF YEAR AND CHAIRMAN HINTS AT JOINT VENTURES BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EASTMAN KODAK CO SAID IT PLANS TO SPIN OFF ITS CHEMICAL UNIT ADDRESSING INVESTOR DEMANDS THAT THE COMPANY SHED A MAJOR ASSET AND FOCUS ON ITS CORE IMAGING BUSINESS WITHOUT THE CHEMICAL BUSINESS WHICH GENERATED 39 BILLION OF KODAK'S 206 BILLION IN SALES LAST YEAR WE ARE AN IMAGING AND HEALTH COMPANY THAT WILL CONCENTRATE ON SELLING BRANDED PRODUCTS CHAIRMAN KAY R WHITMORE SAID THERE'S NO LACK OF CLARITY AROUND THAT THE SPINOFF IS THE FIRST PART OF A RESTRUCTURING PLAN THAT MR WHITMORE HAS PROMISED TO DELIVER BY SEPTEMBER IN AN INTERVIEW HE SAID A NEW PRICING STRATEGY FOR KODAK'S CORE FILM PRODUCTS WILL BE A KEY PART OF IT HE ACKNOWLEDGED THAT FILM SALES WERE DISAPPOINTING IN MAY AND THAT THE ROCHESTER NY COMPANY IS LOSING MARKET SHARE TO PRIVATE LABEL FILM WHICH UNDERCUTS KODAK'S PRICE BY AS MUCH AS 2 A ROLL MR WHITMORE ALSO HINTED IN THE INTERVIEW THAT NEW JOINT VENTURES POSSIBLY INVOLVING THE STERLING WINTHROP DRUG UNIT WHICH ALREADY HAS A RESEARCH AND MARKETING ALLIANCE WITH ELF SANOFI SA WILL ALSO PLAY A ROLE IN HIS TURNAROUND PLAN HE DECLINED TO ELABORATE THE ANNOUNCEMENT OF THE CHEMICAL SPINOFF CAME JUST SIX WEEKS AFTER INVESTORS QUESTIONED HIS ABILITY TO LEAD THE COMPANY FOLLOWING THE ABRUPT REIGNATION OF KODAK'S CHIEF FINANCIAL OFFICER CHRISTOPHER J STEFFEN MR STEFFEN HAD WIDELY HINTED THAT A KODAK TURNAROUND PLAN WOULD INCLUDE THE SALE OR SPINOFF OF A MAJOR BUSINESS AND HIS DEPARTURE RAISED QUESTIONS ABOUT WHETHER SUCH MOVES WERE STILL BEING CONSIDERED BY ANNOUNCING THE SPINOFF AT AN ANALYSTS MEETING HERE YESTERDAY INSTEAD OF IN SEPTEMBER AS OTHER KODAK EXECUTIVES HAD URGED MR WHITMORE SAID HE HOPES TO PROVE TO WALL STREET THAT HE IS CAPABLE OF MAKING MAJOR DECISIONS IN A TIMELY FASHION HE SAID HE WILL ANNOUNCE OTHER PARTS OF HIS PLAN AS THEY BECOME COMPLETE ALTHOUGH ANALYSTS APPLAUDED THE SPINOFF KODAK'S STOCK TOOK A HIT YESTERDAY FOLLOWING A 2625 JUMP MONDAY IN ANTICIPATION OF THE NEWS IT CLOSED AT 52375 ON COMPOSITE TRADING IN THE NEW YORK STOCK EXCHANGE DOWN 1375 OR 26 THE DECLINE FOLLOWED KODAK'S DISCLOSURES OF A BLEAK SALES TREND FOR APRIL AND MAY FILM SALES FOR THE PERIOD WERE DOWN 3 TO 5 FROM A YEAR EARLIER SALES FOR OTHER SEGMENTS REMAINED FLAT CITING THAT DATA PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON TRIMMED HIS SECONDQUARTER EARNINGS ESTIMATE TO 1 A SHARE FROM 112 IN THE YEAREARLIER QUARTER KODAK EARNED 361 MILLION OR 111 A SHARE ON 519 BILLION IN SALES UNDER TERMS OF THE PROPOSED SPINOFF KODAK SHAREHOLDERS WOULD RECEIVE SHARES OF EASTMAN CHEMICAL IN PROPORTION TO THE NUMBER OF KODAK SHARES THEY OWN WHEN THE TRANSACTION CLOSES EXPECTED AT YEAREND THE COMBINED DIVIDENDS OF BOTH STOCKS WOULD EQUAL DIVIDENDS CURRENTLY PAID ON KODAK STOCK THE NEW ENTITY EASTMAN CHEMICAL CO WOULD BE HEADED BY ITS CURRENT PRESIDENT EARNEST W DEAVENPORT JR WHO WOULD RESIGN FROM KODAK'S BOARD IT WOULD BORROW 2 BILLION AND MAKE A SPECIAL PAYMENT TO KODAK WHICH WILL USE THE MONEY TO PAY DOWN ITS OWN DEBT AS OF MARCH 31 KODAK'S DEBT TOTALED 95 BILLION CITING THE DEBT PAYMENT MOODY'S INVESTORS SERVICE INC PUT KODAK'S DEBT UNDER REVIEW FOR POSSIBLE UPGRADE EASTMAN CHEMICAL FOUNDED 73 YEARS AGO AS A CAPTIVE SUPPLIER OF KODAK'S RAW MATERIALS NOW ATTRIBUTES LESS THAN 8 OF ITS SALES TO KODAK AS A STANDALONE COMPANY IT WOULD BE AMONG THE LARGEST CHEMICAL MAKERS IN THE US SPINNING OFF EASTMAN CHEMICAL REDUCES KODAK'S DEBT BUT IT WON'T NECESSARILY REDUCE KODAK'S DEBTTOEQUITY RATIO IT ALSO DOESN'T ADDRESS ANALYSTS' CRITICISMS THAT KODAK SPENDS TOO MUCH ON RESEARCH AND DEVELOPMENT AND ON ADVERTISING TO SOLVE THAT PROBLEM MANY ON WALL STREET EXPECT SIGNIFICANT STAFF CUTS ABOVE THE 2000 LAYOFFS ANNOUNCED EARLIER THIS YEAR YOU'VE GOT TO GO IN THERE AND CUT AND CUT AND CUT SAID PRUDENTIAL'S MR HENDERSON MR WHITMORE SAID KODAK WILL REDUCE ITS HEAD COUNT OVER THE NEXT YEAR AND OVER THE LONG TERM BUT DECLINED TO SAY HOW OR BY HOW MUCH KODAK SAID THE SPINOFF WILL MEAN EASTMAN CHEMICAL WILL HAVE DIRECT AND GREATER ACCESS TO CAPITAL MARKETS AND WILL BE ABLE TO ALIGN EMPLOYEE INCENTIVES MORE CLOSELY WITH EASTMAN PEFORMANCE THROUGH OWNERSHIP OF EASTMAN STOCK 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 9306160076 930616 COST OF CHANGE HEALTHCARE INDUSTRY IS NOW RESTRUCTURING WITH IT COMES PAIN AFTER THE FAT IS CUT EFFORTS TO SAVE ARE APT TO MEAN CLOSURES AND FEWER JOBS BLAMING THE HILLARY FACTOR' BY GEORGE ANDERS AND RON WINSLOW STAFF REPORTERS OF THE WALL STREET JOURNAL WHILE THE CLINTON ADMINISTRATION GROPES FOR WAYS TO OVERHAUL US HEALTH CARE A SWEEPING RESTRUCTURING OF THE HEALTH INDUSTRY IS ALREADY UNDER WAY IN AN ABRUPT ABOUTFACE AFTER MORE THAN 50 YEARS OF ENDLESS EXPANSION THE NATION'S PROVIDERS OF HEALTHCARE GOODS AND SERVICES ARE IN THE MIDST OF THE KIND OF WIDESCALE CUTBACKS AND BELTTIGHTENING THAT HIT BIG US INDUSTRIAL CONCERNS IN RECENT YEARS INDEED WHILE FEW ARGUE WITH THE VIRTUES OF EXPANDING HEALTH CARE TO THE 37 MILLION UNINSURED AMERICANS AND CONTAINING RUNAWAY COSTS THE MAJOR GOALS OF HEALTH REFORM BRINGING AUSTERITY TO THE 838 BILLION HEALTHCARE SECTOR IS LIKELY TO BRING WITH IT MORE PAIN THAN PEOPLE REALIZE IN A FEW CASES THE CLINTON TEAM MAY BE ABLE TO BLAST AWAY AT LAVISH PERKS AND SKYHIGH PAY FOR TOPLEVEL JOBS MORE OFTEN THOUGH ATTEMPTS TO REALIZE BIG SAVINGS OR JUST RESTRAIN GROWTH WILL INVOLVE JOB CUTS CLOSURES AND ROLLBACKS IN WAGES FOR NURSES TECHNICIANS AND OTHERS WHO WEREN'T MAKING BIG MONEY TO BEGIN WITH ALREADY SOME BIG HOSPITALS HAVE BEGUN ROUNDS OF MERGERS AND CUTBACKS THAT WILL MAKE THEM MORE EFFICIENT BUT LESS RELIABLE AS MAJOR LOCAL EMPLOYERS DRUG MANUFACTURERS MEDICALSUPPLY COMPANIES AND INSURERS ALSO ARE STARTING TO PARE COSTS AND PAYROLLS EVEN SOME DOCTORS ARE BRACING FOR LEANER TIMES IN WHICH THEY MAY NEED TO CUT THEIR OFFICE PAYROLLS THESE CHANGES ARE BEING PROVOKED PARTLY BY ANTICIPATION AND ANXIETY OVER THE CLINTON PROPOSALS JUST THREE WEEKS AGO HILLARY RODHAM CLINTON LAMBASTED THE MEDICAL ESTABLISHMENT FOR PRICEGOUGING AND PROFITEERING WHILE SHE SOFTENED THAT HARD LINE IN A SPEECH TO DOCTORS AT THIS WEEK'S AMERICAN MEDICAL ASSOCIATION MEETING IN CHICAGO THE POSSIBILITY OF TOUGH GOVERNMENTORDERED COSTCUTTING IS SENDING TREMORS THROUGH THE INDUSTRY SOME HEALTHINDUSTRY EXECUTIVES LIKE TO PORTRAY THE CLINTON ADMINISTRATION AS RAIDERLIKE OUTSIDERS WHO ARE FORCING UNWELCOME AUSTERITY TYPICAL IS DENNIS NEWMAN PRESIDENT OF IMEX MEDICAL SYSTEMS INC WHO BLAMES THE HILLARY FACTOR FOR HIS COMPANY'S RECENT SALES SLUMP ORDERS FOR IMEX'S ARTERYPLAQUE MEASURING DEVICES ARE BEING POSTPONED RIGHT AND LEFT UNTIL PEOPLE SEE WHAT COMES OUT OF THE GOVERNMENT'S HEALTHCARE PROPOSAL HE SAYS BUT RETRENCHMENT IS ALSO BEING DRIVEN BY FORCES WITHIN HEALTH CARE ITSELF INCREASINGLY POWERFUL BUYERS' GROUPS BE THEY HEALTH MAINTENANCE ORGANIZATIONS LARGE CORPORATE HEALTH COALITIONS OR THE GOVERNMENT'S OWN MEDICARE PROGRAM ARE DEMANDING THAT DOCTORS AND HOSPITALS PROVIDE BETTER CARE AT LOWER COST THOSE PRESSURES ARE LIKELY ONLY TO INTENSIFY IN COMING YEARS INDUSTRY SPECIALISTS SAY THE IMPACT ON JOBS AND ECONOMIC GROWTH IS LIKELY TO BE SIZABLE THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT HEALTH CARE HAS BEEN CREATING ABOUT 300000 JOBS A YEAR IF THE RATE OF INCREASE IN HEALTHCARE SPENDING GOES DOWN SAYS PAUL COOPER VICE PRESIDENT FOR HEALTHCARE POLICY AT PRUDENTIAL INSURANCE CO OF AMERICA WE HAVE TO BE PREPARED FOR LESS JOB GROWTH IN THAT SECTOR TO BE SURE EXTENDING COVERAGE TO THE NATION'S UNINSURED IS LIKELY TO REQUIRE SOME ADDED JOBS TO MEET NEW DEMANDS FOR CARE SUCH AREAS AS MANAGED CARE AND HEALTHINFORMATION TECHNOLOGY ARE ALSO EXPECTED TO GROW BUT OVERALL SUCCESSFUL HEALTH REFORM IS EXPECTED TO STALL THE ECONOMY'S MOST POWERFUL JOB ENGINE JOB LOSSES OF COURSE ARE PART OF ANY DOWNSIZING FROM AUTOS TO THE MILITARY BUT MEDICAL RETRENCHMENT IS ESPECIALLY TOUGH BECAUSE OF ANOTHER ISSUE THE POSSIBLE IMPACT ON PATIENTS' LIVES HEALTH RESEARCHERS HAVE IDENTIFIED MANY POTENTIAL AREAS FOR EFFICIENCY SUCH AS CURTAILING EXCESSIVE SURGERY OR TESTS OR AVOIDING COSTLY LIFEPROLONGING STEPS FOR THE VERY SICK WHEN IT COMES TO AN INDIVIDUAL CASE THOUGH IT WON'T BE EASY TO FORGO EVEN MARGINAL TYPES OF CARE IN THE NAME OF EFFICIENCY AS A RESULT EVEN DOCTORS WHO EMBRACE THE NEED FOR CHANGE SAY THEY HAVE QUALMS ABOUT HOW THINGS WILL PLAY OUT I WAS AN ARDENT CLINTON SUPPORTER SAYS ERIC ROSE A NEW YORK HEART SURGEON BUT I'VE BEEN DISAPPOINTED AT THE CONTINUAL VERBAL ATTACKS ON HEALTHCARE PROVIDERS DR ROSE'S BIGGEST WORRY PRICE CONTROLS THAT COULD HURT HIS ABILITY TO SUPPORT A 15PERSON RESEARCH TEAM THAT IS LOOKING INTO NEW WAYS TO TREAT HEART DISEASE AS A NEW EFFICIENCY CAMPAIGN TAKES SHAPE AMERICA'S 5500 HOSPITALS ARE LIKELY TO BEAR THE BRUNT THEY ACCOUNT FOR 42 OF HEALTHCARE SPENDING SAYS THE COMMERCE DEPARTMENT MORE THAN OUTLAYS FOR DOCTORS DENTISTS AND PRESCRIPTION DRUGS COMBINED WITH ONETHIRD OF AMERICA'S 925000 HOSPITAL BEDS EMPTY ON A TYPICAL NIGHT THE INDUSTRY HAS IMMENSE OVERCAPACITY ALREADY CUTBACKS ARE UNDER WAY EARLIER THIS YEAR COLUMBIA PRESBYTERIAN MEDICAL CENTER IN NEW YORK ANNOUNCED THAT IT WAS ELIMINATING 250 OF ITS 9000 JOBS THROUGH ATTRITION AND LAYOFFS IT ALSO IS SAVING BY USING LOWPAID NURSING ASSISTANTS TO DO MANY SIMPLE TASKS NORMALLY DONE BY 45000AYEAR REGISTERED NURSES IN ADDITION IT IS DIVESTING ITSELF OF SUCH FRINGE ACTIVITIES AS A REALESTATE UNIT AND LOCAL PARKINGLOT CONCESSIONS THE KIND OF DOWNSIZING WE'RE GOING THROUGH IS VERY SIMILAR TO WHAT'S ALREADY OCCURRED AT BENDIX OR AT&T OR IBM SAYS WILLIAM SPECK PRESIDENT WE'RE TAKING OUR LEAD FROM INDUSTRY AT MANY HOSPITALS AUSTERITY CAMPAIGNS WILL HIT MIDDLE MANAGERS ESPECIALLY HARD WE'D RATHER RECRUIT A PHYSICAL THERAPIST THAN AN ADMINISTRATOR SAYS NANCY HARVEY A VICE PRESIDENT OF MACNEAL HOSPITAL IN BERWYN ILL OTHER HOSPITALS ARE FLATTENING OUT THEIR ORGANIZATION CHARTS ELIMINATING AS MANY AS 20 OF MANAGERIAL JOBS IN AREAS SUCH AS FINANCE BILLING AND BUILDING SERVICES OFTEN THE FASTEST WAY FOR HOSPITALS TO CUT COSTS WILL BE TO MERGE WITH A NEARBY RIVAL AND THEN WHITTLE AWAY DUPLICATE DEPARTMENTS TWO OF THE BIGGEST HOSPITAL SYSTEMS IN ST LOUIS BARNESJEWISH INC AND CHRISTIAN HEALTH SERVICES MERGED THIS MONTH FOLLOWING AN EARLIER MERGER OF BARNES AND JEWISH HOSPITALS A HANDFUL OF EMPLOYEES HAVE ALREADY BEEN LAID OFF AND AT BARNES AND JEWISH EVERY CLINICAL SERVICE IS UNDER REVIEW TO CUT DUPLICATION IN WASHINGTON STATE FOUR BIG HOSPITALS ANNOUNCED A STRATEGIC ALLIANCE LAST WEEK THAT HAS ALREADY STALLED COSTLY PLANS FOR A NEW BONEMARROW TRANSPLANT CENTER AND AN INFERTILITY TREATMENT LAB AN ORDER FOR A 15 MILLION MAGNETIC RESONANCE IMAGING MACHINE MAY BE CANCELED CHANGE IS COMING VERY QUICKLY SAYS BARRY CONNOLEY CHIEF EXECUTIVE OF MULTICARE HEALTH SYSTEM TACOMA ONE OF THE PARTICIPANTS ALLIANCES LIKE THIS WILL PRODUCE COST SAVINGS AND HELP US BETTER SURVIVE IN MERIDEN CONN HOSPITAL EXECUTIVE THEODORE HOROWITZ EXPECTS TO SHED 200 OF HIS HOSPITAL'S 1300 JOBS AS THE RESULT OF A MERGER AND A PENDING MOVE TO A NEW SMALLER FACILITY MR HOROWITZ RUNS VETERANS MEMORIAL MEDICAL CENTER A 270BED FACILITY CREATED BY THE MERGER OF TWO SMALL HOSPITALS SEVERAL YEARS AGO HE IS SEEKING TO SHRINK THE HOSPITAL TO ONE FACILITY WITH JUST 180 BEDS A LEVEL THAT HE FEELS IS MORE IN LINE WITH THE TOWN'S NEEDS WE DON'T NEED TWO DIETARY DEPARTMENTS TWO BOILER ROOMS TWO OF EVERYTHING SAYS MR HOROWITZ HIS CONSOLIDATION PLANS ARE ALMOST CERTAIN TO LEAVE MERIDEN WITH SOME BIG EMPTY BUILDINGS IN ITS ALREADY AILING DOWNTOWN TO LESSEN THE DISRUPTION HIS HOSPITAL IS OFFERING TO SPEND 4 MILLION TO HELP RECRUIT NEW TENANTS AND IF ALL ELSE FAILS TO KNOCK DOWN SOME OF ITS OLD BUILDINGS AND TURN THEM INTO PARKS AS HOSPITALS RETRENCH MANY DOCTORS ALSO ARE FEELING THE PINCH FOR 1991 THE MOST RECENT YEAR AVAILABLE DOCTORS' AVERAGE PAY AMOUNTED TO 170300 ACCORDING TO THE AMA THAT WAS UP JUST 38 FROM THE YEAR EARLIER FAR LESS THAN THE 66 ANNUAL GAINS THAT DOCTORS AVERAGED IN THE 1980S WHAT IS MORE MANY DOCTORS SAY THEIR EARNINGS HAVE SHRUNK LATELY OPHTHALMOLOGISTS FOR EXAMPLE DEPEND HEAVILY ON MEDICARE PAYMENTS FOR CATARACT SURGERY ON ELDERLY PATIENTS THOSE REIMBURSEMENTS HAVE PLUNGED 36 PER OPERATION DURING THE PAST SIX YEARS TO AN AVERAGE OF 1018 PER OPERATION THAT'S A CONSEQUENCE OF GOVERNMENT CONCERN THAT OPHTHALMOLOGISTS WERE OVERPAID FOR A RELATIVELY STRAIGHTFORWARD PROCEDURE THAT TAKES AS LITTLE AS 20 MINUTES SOME NEW PROPOSALS IN WASHINGTON WOULD CUT THAT REIMBURSEMENT FURTHER TO LESS THAN 800 OVER THE NEXT FOUR YEARS I'VE GOT A LOT OF TREPIDATION ABOUT WHAT'S GOING TO HAPPEN SAYS STEPHEN OBSTBAUM A NEW YORK OPHTHALMOLOGIST IN THE PAST TWO YEARS HE SAYS HE HAS LAID OFF THREE OF HIS 12 EMPLOYEES AND ENDURED A 20 PAY CUT HIMSELF TO SAVE MONEY HE ALSO HAS PASSED UP A CHANCE TO BUY A NEW 25000 EYEMEASURING MACHINE HE MIGHT HAVE WANTED I'M NOT SAYING YOU CAN'T DO GOOD OPHTHALMOLOGY AT CURRENT REIMBURSEMENT RATES DR OBSTBAUM SAYS BUT THERE'S BEEN A DENIGRATION OF THE GOOD THAT DOCTORS DO EQUALLY APPREHENSIVE ARE SOME PSYCHIATRISTS AND OTHER MENTALHEALTH PROFESSIONALS TO HOLD DOWN COSTS MANY HEALTH MAINTENANCE ORGANIZATIONS ARE LIMITING HOW MUCH MENTALHEALTH TREATMENT THEIR MEMBERS CAN UNDERGO IN ANY YEAR LIMITS MAY BE A BOON TO COMPANIES WORRIED ABOUT RUNAWAY HEALTHCARE COSTS BUT THEY ARE DISMAYING TO THE DOCTORS AFFECTED MANAGEDCARE COMPANIES ARE TRYING TO DEFINE AWAY A WHOLE AREA OF TREATMENT SAYS NORMAN CLEMENS A PSYCHIATRIST IN CLEVELAND DR CLEMENS SAYS THAT MANY YOUNG DOCTORS ARE PASSING UP CAREERS IN PSYCHIATRY BECAUSE THEY DON'T BELIEVE THEY WILL BE ABLE TO WORK AT LENGTH ON INTERESTING CASES THE PHARMACEUTICAL INDUSTRY HAS ANNOUNCED 10000 JOB CUTS IN THE LAST TWO YEARS SAYS ERAN BROSHY VICE PRESIDENT AT THE BOSTON CONSULTING GROUP NEW YORK AS MARKET FORCES PUT PRESSURE ON PROFITS EVEN BEFORE THE CLINTON ADMINISTRATION TARGETED THE DRUG INDUSTRY AS A HEALTHCOST CULPRIT THE AX IS FALLING IN PARTICULAR ON THE INDUSTRY'S 50000 HIGHLYTRAINED SALESPEOPLE WHO EARN FROM 90000 TO 150000 A YEAR AT ONE MAJOR COMPANY WITH A SALES FORCE OF MORE THAN 2000 PEOPLE JUST FIVE PEOPLE ACCOUNT FOR ONETHIRD OF DRUG SALES TO HOSPITALS SAYS JOHN TW HAWKINS A MANAGING DIRECTOR AT RUSSELL REYNOLDS ASSOCIATES INC A WASHINGTON DC RECRUITING FIRM THAT REFLECTS ENORMOUS CHANGES IN PURCHASING OF BOTH HOSPITAL AND OUTPATIENT PRESCRIPTION DRUGS THAT DIMINISH THE INFLUENCE OF AND THE NEED FOR AN ARMY OF SALES REPRESENTATIVES SOME MEDICALEQUIPMENT COMPANIES TOO ARE FINDING THAT BOOM TIMES ARE OVER THIS SPRING ONETIME HIGHFLIERS SUCH AS US SURGICAL CORP AND ACCUSON CORP A MAKER OF ULTRASOUND DIAGNOSTIC MACHINES HAVE ANNOUNCED SALES SLOWDOWNS THAT THEY ATTRIBUTE IN PART TO CUSTOMERS' ANXIETIES ABOUT HEALTHCARE REFORM MEDICALEQUIPMENT MAKERS AND OPERATORS ALSO ARE FINDING THAT IT IS HARDER TO COMMAND TOP DOLLAR FOR THEIR MOST SOPHISTICATED GEAR IN OAKLAND CALIF LARGE HMOS SUCH AS QUALMED INC ARE NOW PAYING JUST 625 FOR MAGNETIC RESONANCE IMAGING DOWN FROM 900 A FEW YEARS AGO WE'RE STILL MAKING A PROFIT BUT WE DON'T MAKE MONEY LIKE WE USED TO SAYS GRANT LEONARD OPERATIONS MANAGER AT ONE MRI OPERATOR MEDICAL CENTER MAGNETIC IMAGING ALSO KEEPING A TIGHT EYE ON COSTS ARE THE INSURANCE COMPANIES THAT PROCESS BILLIONS OF MEDICAL CLAIMS EACH YEAR IN DES MOINES IOWA FOR EXAMPLE PRINCIPAL MUTUAL LIFE INSURANCE CO IN THE PAST TWO YEARS HAS TRIMMED THE NUMBER OF PEOPLE HANDLING HEALTH CLAIMS BY 25 TO 1800 PRINCIPAL EXECUTIVES SAY MORE CUTS ARE LIKELY AS A MOVE TO ELECTRONIC DATA INTERCHANGE OR EDI TAKES HOLD WE THINK EDI WILL REDUCE ADMINISTRATIVE COSTS AND PERHAPS THE HASSLE FACTOR OF SUBMITTING CLAIMS SAYS THOMAS ALLEN DIRECTOR OF GROUP CLAIM AT PRINCIPAL IT'S GOOD PUBLIC POLICY BUT THE DOWNSIDE IS THAT AS WE BECOME MORE EFFICIENT FEWER JOBS ARE INVOLVED ABOUT 200000 PEOPLE WHOSE LIVELIHOOD DEPENDS IN PART ON SELLING HEALTH INSURANCE ARE ANOTHER EXAMPLE OF ADMINISTRATIVE WASTE THAT REFORMERS ARE TARGETING JESSE PATTON MAKES 54000 A YEAR AS PRESIDENT OF ASSOCIATION MARKETING GROUP A THREEPERSON DES MOINES AGENCY THAT WRITES HEALTH POLICES FOR GROUPS OF SMALL BUSINESSES UNDER THE CLINTON PROGRAM IT IS EXPECTED THAT HEALTH PURCHASING ALLIANCES WOULD TAKE OVER THAT ROLE WE'VE PROBABLY GOT UNTIL ABOUT 1997 BEFORE WE'RE PHASED OUT IF THIS GOES THROUGH SAYS MR PATTON IT WOULD BE TOUGH ON AGENTS ECONOMISTS SEE BIG VARIATIONS IN HOW HEALTHCARE REFORM WILL AFFECT DIFFERENT PARTS OF THE COUNTRY MARK ZANDI OF REGIONAL FINANCIAL ASSOCIATES INC A WEST CHESTER PA ECONOMICCONSULTING FIRM PREDICTS THAT THE NORTHEAST AND MIDWEST WILL BE HARDEST HIT THAT IS A CONCERN SHARED BY MANY IN THE BOSTON AREA A MEDICAL MECCA SATURATED WITH THE KIND OF HIGHTECHNOLOGY SUBSPECIALTY CARE THAT IS ONE OF THE BIG DRIVERS OF HEALTH COSTS MASSACHUSETTS GENERAL HOSPITAL BOSTON'S LARGEST PRIVATE EMPLOYER WITH MORE THAN 10000 WORKERS IS CUTTING ITS OPERATING BUDGET BY 9 AND EXPECTS TO TRIM JOBS THROUGH ATTRITION AND SOME LAYOFFS THE HOSPITAL RECENTLY FINISHED THE SHELL OF A NEW 14STORY INPATIENT BUILDING BUT HAS DECIDED TO FILL ONLY HALF THE FLOORS WITH HOSPITAL BEDS IN CASE THEY NEED THE SPACE FOR PRIMARY CARE MEANTIME BRIGHAM AND WOMEN'S HOSPITAL AND THE NEW ENGLAND MEDICAL CENTER HAVE RECENTLY LAID OFF SOME STAFF AND MORE RETRENCHMENT IS EXPECTED OVER THE LAST THREE OR FOUR YEARS I'D CALL HEALTH CARE THE EXCEPTION TO THE RECESSION RULE IN NEW ENGLAND SAYS FREDERICK BREIMYER PRESIDENT OF THE NEW ENGLAND ECONOMIC PROJECT A FORECASTING ORGANIZATION AND CHIEF ECONOMIST AT STATE STREET BANK WE WERE LOOKING TO HEALTH CARE TO CARRY US BEYOND THE '90S NOW THE OUTLOOK IS FOR HEALTH REFORM TO SLASH ANOTHER REGIONAL TEAR IN THE FABRIC OF THE ECONOMY HE ADDS MR ZANDI ALSO PROJECTS THAT WHILE OVERHAULING HEALTH CARE WILL INVIGORATE THE ECONOMY IN THE LONG RUN THE INITIAL IMPACT WILL BE PAINFUL WHILE STRESSING THAT HIS FORECAST IS TENTATIVE HE SAYS THAT BETWEEN 1995 AND 1997 FOR INSTANCE COINCIDENTALLY WHEN MR CLINTON WOULD SEEK REELECTION SUCCESSFUL HEALTH REFORM COULD SHAVE 02 OFF ANNUAL GROWTH IN GROSS DOMESTIC PRODUCT AND COST THE ECONOMY ABOUT 750000 NEW JOBS RESTRUCTURINGS IN OTHER INDUSTRIES ARE USUALLY PROVOKED BY CLEARCUT MARKET FORCES TECHNOLOGY ADVANCES THAT SHARPLY REDUCED THE PRICE OF COMPUTING POWER HAVE BROUGHT UPHEAVAL TO THE COMPUTER INDUSTRY JAPANESE AUTO COMPANIES FORCED A REVAMPING OF US CAR MAKERS WITH HIGHER QUALITY LOWERPRICED CARS IN HEALTH CARE A CHALLENGE TO THE SOCIAL COMPACT IS A MAJOR FORCE BEHIND THE SWEEPING CHANGES UNDERWAY THE HEALTHCARE INDUSTRY HAS BEEN BUILT IN LARGE MEASURE ON THE ASSUMPTION THAT WHEN HEALTH CARE IS CALLED FOR SOCIETY WILL PAY WHATEVER IT TAKES THAT'S THE ULTIMATE ASSUMPTION THAT'S BEING CALLED INTO QUESTION SAYS MR BREIMYER OF STATE STREET BANK JUST CALLING IT INTO QUESTION IS DISRUPTIVE HOW IT REVERBERATES THROUGH THE ECONOMY WILL BE TRAUMATIC AND DIFFICULT HE ADDS 9306160075 930616 ECONOMY CONSUMER PRICES ROSE ONLY 01 DURING MAY MINOR RISE AFTER APRIL 04 EASES FEARS OF INFLATION CLINTON HAILS THE NEWS BY CHRIS FRAMPTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CONSUMER PRICES EDGED UP ONLY 01 IN MAY THE LABOR DEPARTMENT SAID FOLLOWING A 04 APRIL INCREASE THAT HAD LED TO FEARS THAT INFLATION WAS ON THE RISE COMBINED WITH THE DEPARTMENT'S REPORT ON FRIDAY THAT WHOLESALE PRICES WERE UNCHANGED FOR MAY THE FIGURES MEAN THE FEDERAL RESERVE ISN'T LIKELY TO BOOST INTEREST RATES IMMEDIATELY EXCLUDING FOOD AND ENERGY WHICH VARY WIDELY FROM MONTH TO MONTH THE RISE IN CONSUMER PRICES ALSO SLOWED TO 02 FROM 04 IN APRIL IN A NEWS CONFERENCE YESTERDAY PRESIDENT CLINTON HAILED THE TWO VERY GOOD REPORTS ON PRICES AND SAID THE DROP IN LONGTERM INTEREST RATES HAD LED TO A 20YEAR LOW IN MORTGAGE RATES AND A SEVENYEAR HIGH IN HOUSING SALES SOME ANALYSTS THINK PRICES WILL CONTINUE AT A SLOW PACE THIS YEAR I AM VERY CONFIDENT THAT WE WILL SEE INFLATION THAT IS EQUAL TO 1992 INFLATION IF NOT LOWER SAID S JAY LEVY CHAIRMAN OF THE ECONOMICS DEPARTMENT OF BARD COLLEGE CONSUMER PRICES ROSE 33 LAST YEAR BUT THE NATIONAL ASSOCIATION OF MANUFACTURERS SAID THE SLOW INCREASE IN PRODUCER AND CONSUMER PRICES IS SIMPLY A REFLECTION OF LETHARGIC GROWTH IN THE ECONOMY WITH SOFT DEMAND AND HIGH UNEMPLOYMENT THE LABOR DEPARTMENT SAID ENERGY PRICES AT THE CONSUMER LEVEL DROPPED 1 IN MAY LED BY A 14 DECLINE IN FUEL AND OIL AND AN EVEN SHARPER DECLINE OF 25 IN GASOLINE NATURAL GAS AND ELECTRICITY PRICES ROSE 04 THE DECREASE IN ENERGY PRICES WAS OFFSET BY A CONTINUED SURGE IN FOOD PRICES WHICH ROSE 04 FOR THE SECOND MONTH IN A ROW PRICES AT GROCERY STORES ROSE 06 LED PRIMARILY BY A 35 INCREASE IN THE COST OF FRUITS AND VEGETABLES MUCH OF THAT ADVANCE WAS THE RESULT OF A 428 SURGE IN TOMATO PRICES THE DEPARTMENT ALSO SAID THAT AFTER ADJUSTING FOR INFLATION AVERAGE WEEKLY WAGES OF PRODUCTION OR NONSUPERVISORY WORKERS IN PRIVATE INDUSTRY JUMPED 16 IN MAY AFTER INCREASING 01 IN APRIL LAST MONTH'S INCREASE RESULTED FROM A 12 RISE IN HOURS COUPLED WITH A 06 EXPANSION IN AVERAGE HOURLY EARNINGS ALL THE FIGURES ARE ADJUSTED FOR SEASONAL CHANGES LABOR DEPARTMENT'S CONSUMER PRICE INDEX FOR MAY SEASONAL VARIATION TOGETHER WITH THE PERCENTAGE INCREASES FROM MAY 1992 WERE 9306160073 930616 PRESIDENT COMBATS CHARGES OF INDECISION AND DEFENDS RECORD AT NEWS BRIEFING CLINTON ACTS TO SHIFT ATTENTION TO BILLS IN CONGRESS ACHIEVEMENTS BY MICHAEL K FRISBY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON REBUTTED CHARGES HE IS INDECISIVE AND MOVED TO SHIFT ATTENTION TO LEGISLATIVE INITIATIVES SUCH AS THE BUDGET BILL AND CAMPAIGN FINANCE REFORM IN THE WHITE HOUSE'S LATEST STRATEGY TO TOUT THE PRESIDENT'S ACCOMPLISHMENTS AND ERASE HIS NEGATIVE IMAGE MR CLINTON ADROITLY TURNED A PRESS BRIEFING BILLED AS A DISCUSSION OF YESTERDAY'S FAVORABLE CONSUMER PRICES REPORT INTO A DEFENSE OF HIS RECORD AND A REFOCUSING OF HIS AGENDA WHITE HOUSE AIDES ACKNOWLEDGED THAT MR CLINTON IS STRIVING TO PUT THE SUPREME COURT NOMINATION PROCESS BEHIND HIM AND ONE DAY AFTER ABRUPTLY ENDING A NEWS CONFERENCE FOLLOWING THE ANNOUNCEMENT THAT HE WAS NOMINATING RUTH BADER GINSBURG TO SUCCEED THE RETIRING JUSTICE BYRON WHITE HE TRIED TO COUNTER HIS REPUTATION FOR FOLDING UNDER PRESSURE BY BRINGING UP EARLIER DECISIONS HE SAYS THE MEDIA HAVE REPORTED UNFAIRLY THERE IS NO WAVERING MR CLINTON REPLIED TO A REPORTER'S QUESTION THE PRESIDENT BATTLED THE IMPRESSION THAT HE BACKTRACKED ON HIS POLICY TOWARD BOSNIA EVEN THOUGH THE ADMINISTRATION HAD ADVOCATED LIFTING THE ARMS EMBARGO ON THE MUSLIMS AND SELECTIVE BOMBING OF SERBIAN POSITIONS ON BOSNIA I MADE A DECISION MR CLINTON SAID THE UNITED NATIONS CONTROLS WHAT HAPPENS IN BOSNIA I CANNOT UNILATERALLY LIFT THE ARMS EMBARGO I DIDN'T CHANGE MY MIND OUR ALLIES DECIDED THAT THEY WEREN'T PREPARED TO GO THAT FAR AT THIS TIME THEY ASKED ME TO WAIT AND THEY SAID THEY WOULD NOT SUPPORT IT THE PRESIDENT ALSO DEFENDED HIS DECISION TO ACCEPT CHANGES THAT THE SENATE FINANCE COMMITTEE WILL MAKE IN HIS BUDGET BILL MR CLINTON WAS WELLVERSED ON HIS ACHIEVEMENTS AND THE STATISTICS SUPPORTING THEM NOTING THAT FOR THE FIRST TIME IN A YEAR UNEMPLOYMENT FELL BELOW 7 THAT 755000 NEW JOBS HAVE BEEN CREATED THAT INTEREST RATES ARE AT A 20YEAR LOW AND THAT HOUSING SALES ARE AT A SEVENYEAR HIGH THE PRESIDENT TOOK CREDIT FOR LEADING THE GLOBAL EFFORT TO SUPPORT RUSSIAN PRESIDENT BORIS YELTSIN SIGNING THE BIODIVERSITY TREATY SIGNING THE FAMILYLEAVE AND MOTORVOTER BILLS REPEALING THE GAG RULE ON ABORTION ADVICE AT FEDERALLY FUNDED CLINICS AND ENDING THE BAN ON FETALTISSUE RESEARCH I'D SAY MOST PEOPLE WOULD THINK THAT WAS A PRETTY DECISIVE RECORD MR CLINTON DECLARED BUT MR CLINTON STILL FACES HURDLES ON CAPITOL HILL HE SAID CAMPAIGN FINANCE REFORM COULD ENCOUNTER A REPUBLICAN FILIBUSTER AND HE TRIED TO PORTRAY SOME REPUBLICANS AS HYPOCRITES FOR SUPPORTING A SIMILAR BILL LAST YEAR WHEN THEY KNEW IT WOULDN'T BE ENACTED IF IN FACT THIS FILIBUSTER OCCURS IT WILL BE THE SECOND TIME THAT REPUBLICAN SENATORS WHO VOTED FOR A PIECE OF PROGRESSIVE LEGISLATION WHEN THERE WAS A REPUBLICAN IN THE WHITE HOUSE HAVE NOW VOTED AGAINST IT AND HAVE FILIBUSTERED IT HE SAID POLITICAL REFORM AND ECONOMIC REFORM IN MY JUDGMENT OVER THE LONG RUN MUST GO HAND IN HAND AND THE TIME IS LONG SINCE PAST WHEN WE SHOULD HAVE CAMPAIGN FINANCE REFORM IT ISN'T CLEAR THAT MR CLINTON'S GIBES WERE HAVING THE DESIRED EFFECT WHILE SENATE DEMOCRATS NEGOTIATED WITH MODERATE REPUBLICANS ON A POSSIBLE CAMPAIGN FINANCE COMPROMISE ONE OF THE GOP MODERATES MINNESOTA SEN DAVID DURENBERGER TOOK THE SENATE FLOOR TO COMPLAIN THAT KIDS IN THE WHITE HOUSE WERE CONTACTING RADIO STATIONS IN HIS HOME STATE TO ACCUSE HIM OF HYPOCRISY MR DURENBERGER DISMISSED THE ACCUSATIONS AS LUDICROUS AND THE NEGOTIATIONS CONTINUED INCONCLUSIVELY LAST NIGHT 9306160072 930616 TECHNOLOGY J&J UNVEILS CONTACT LENS THAT ARE DISPOSABLE DAILY NEW YORK JOHNSON & JOHNSON PLANS TO UNVEIL TODAY THE FIRST DISPOSABLE DAILY CONTACT LENS CALLED 1DAY ACUVUE THE LENS WHICH J&J ESTIMATES WILL COST PATIENTS ABOUT 150 A DAY INCLUDING DOCTORS' FEES ARE TO BE WORN FOR A SINGLE DAY THEN DISCARDED THE LENS WILL COST SLIGHTLY MORE THAN THE COMPANY'S BIGSELLING WEEKLY DISPOSABLE LENS ACUVUE WHICH COSTS ABOUT 115 A DAY I THINK THIS IS GOING TO BE A BIG PRODUCT SAID KURT KRUGER AN ANALYST AT HAMBRECHT & QUIST WHO PROJECTED SALES WILL REACH 200 MILLION IN TWO TO THREE YEARS SALES OF THE WEEKLY ACUVUE LENSES CURRENTLY TOP 300 MILLION A YEAR HE ESTIMATED BERNARD W WALSH PRESIDENT OF JOHNSON & JOHNSON'S VISTAKON UNIT THAT MAKES THE LENS SAID THE COMPANY VIEWS THE PRODUCT AS A BIG OPPORTUNITY A QUESTION SURROUNDING THE DAILY LENS IS WHETHER PATIENTS WILL REUSE THEM LOWERING J&J'S REVENUE MR KRUGER SAID VISTAKON SPENT MORE THAN THREE YEARS AND CLOSE TO 100 MILLION DEVELOPING THE PRODUCT THE COMPANY SAID THE LENSES WILL BE AVAILABLE NEXT MONTH IN TWO TEST MARKETS OMAHA AND LAS VEGAS MR WALSH DECLINED TO SAY WHEN THE PRODUCT WILL BE FULLY ROLLED OUT FOR COMPETITIVE REASONS 9306160071 930616 FINANCING BUSINESS ICO INC ICO INC SAID ITS SHAREHOLDERS APPROVED A 1FOR5 REVERSE STOCK SPLIT EFFECTIVE TODAY THE SPLIT WILL REDUCE COMMON SHARES OUTSTANDING TO ABOUT 32 MILLION FROM ABOUT 158 MILLION THE HOUSTON PETROLEUM SERVICE COMPANY SAID 9306160070 930616 ECONOMY HOUSE APPROVES MEASURE ON STRIKER REPLACEMENTS WASHINGTON THE HOUSE APPROVED BY A VOTE OF 239190 LEGISLATION THAT WOULD BAN THE PERMANENT REPLACEMENT OF STRIKING WORKERS BUT THE BILL NOW FACES HARSHER PROSPECTS IN THE SENATE PROPONENTS THERE HOPE TO BRING THE MEASURE TO THE FLOOR IN JULY BUT IT'S UNLIKELY THAT THE BILL IN ITS CURRENT FORM WILL BE ABLE TO MUSTER THE 60 SUPPORTERS NEEDED TO BREAK AN EXPECTED REPUBLICANLED FILIBUSTER IN THE HOUSE THE LEGISLATION GARNERED SLIGHTLY LESS SUPPORT THAN THE 247 VOTES IT RECEIVED LAST SESSION WHEN IT DIED BEFORE REACHING THE SENATE FLOOR MEMBERS OVERWHELMINGLY REJECTED AN AMENDMENT THAT WOULD HAVE BARRED PERMANENT REPLACEMENT WORKERS IN CASES WHERE STRIKERS AGREE TO ARBITRATION THEY ALSO KILLED AN AMENDMENT THAT WOULD HAVE LIMITED THE BILL'S PROTECTION ONLY TO CERTIFIED UNIONS OPPONENTS INSISTED THAT WORKERS WHO HAVE VOTED IN A UNION BUT HAVEN'T YET BEEN CERTIFIED BY FEDERAL AUTHORITIES SHOULD BE PROTECTED FROM FIRING THE BILL SET ORGANIZED LABOR AND ITS BACKERS AGAINST CORPORATE MANAGEMENT AND ITS SUPPORTERS UNIONS AND DEMOCRATIC LEADERS CONTENDED THAT THE MEASURE WILL LEVEL THE PLAYING FIELD IN LABORMANAGEMENT NEGOTIATIONS 9306160069 930616 MARKETING & MEDIA HEARST DISCUSSES SELLING BOOK PUBLISHING DIVISION NEW YORK HEARST CORP IS DISCUSSING THE SALE OF ITS BOOK PUBLISHING DIVISION WITH POSSIBLE BUYERS THAT INCLUDE WALT DISNEY CO AND PUTNAM BERKLEY GROUP INC ACCORDING TO PUBLISHING INDUSTRY EXECUTIVES FAMILIAR WITH THE TALKS A SPOKESMAN FOR CLOSELY HELD HEARST WHICH ALSO PUBLISHES MAGAZINES AND NEWSPAPERS DECLINED TO COMMENT ON THE REPORTS OF A POSSIBLE SALE WHICH FIRST SURFACED EARLIER THIS YEAR THE HEARST BOOK DIVISION WHICH INCLUDES ADULT HARDCOVER PUBLISHER WILLIAM MORROW & CO PAPERBACK DIVISION AVON AND SEVERAL CHILDREN'S BOOK IMPRINTS HAS TOTAL ANNUAL SALES OF ABOUT 190 MILLION INSIDERS SAY THE ASKING PRICE MAY BE AS HIGH AS 250 MILLION WHICH SOME PUBLISHING ANALYSTS CONSIDER A BIT ABOVE MARKET RATES PUTNAM BERKLEY THE BOOK DIVISION OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC UNIT WON'T COMMENT ON HEARST BUT IT HAS BEEN IN THE MARKET FOR ACQUISITIONS LATELY DISNEY IS SEEN BY MANY IN THE INDUSTRY AS THE MOST LOGICAL BUYER FROM A STRATEGIC STANDPOINT DISNEY DOESN'T DENY IT IS SEARCHING FOR PROPERTIES TO EXPAND IN PUBLISHING BUT WON'T CONFIRM THAT IT IS TALKING TO HEARST 9306160068 930616 AUDIO/VIDEO AFFILIATES DAYTON OHIO AUDIO/VIDEO AFFILIATES INC PLANS TO CHANGE ITS NAME TO REX STORES CORP FOLLOWING A SHAREHOLDER VOTE AT ITS ANNUAL MEETING THIS PAST MONDAY THE ELECTRONICS GOODS RETAILER'S NAME CHANGE AND A CHANGE OF THE COMPANY'S NEW YORK STOCK EXCHANGE SYMBOL TO RSC WILL BE EFFECTIVE AUG 2 9306160067 930616 P&G TO REDEEM DEBENTURES CINCINNATI PROCTER & GAMBLE CO SAID IT WILL REDEEM ON JULY 15 THE OUTSTANDING 100 MILLION OF ITS 7 SINKING FUND DEBENTURES DUE MAY 15 2002 AT 10096 OF PAR THE DEBENTURES ORIGINALLY ISSUED IN 1972 BY THE DIVERSIFIED HOUSEHOLD PRODUCTS CONCERN ARE LISTED ON THE NEW YORK STOCK EXCHANGE 9306160066 930616 WHO'S NEWS AT&T SELECTS WARWICK AS CHAIRMAN OF ITS NEW UNIT FOR BUSINESS IN CHINA BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO NAMED ONE OF ITS KEY EXECUTIVES TO HEAD A NEWLY FORMED CHINA BUSINESS UNIT UNDERSCORING AT&T'S COMMITMENT TO THE REGION WILLIAM J WARWICK WHO LED A TURNAROUND OF AT&T'S CONSUMER PRODUCTS UNIT IN THE LATE 1980S BEFORE MAKING AT&T MICROELECTRONICS ONE OF THE CHIP INDUSTRY'S HOTTEST INNOVATORS WILL CHAIR THE NEW UNIT AT&T CHINA THE COMPANY ALSO MADE MR WARWICK WHO IS CURRENTLY PRESIDENT OF AT&T MICROELECTRONICS A SENIOR VICE PRESIDENT OF THE CORPORATION IN HIS NEW POST HE WILL ALSO TAKE CHARGE OF ALL PLANNING FOR AT&T'S BUSINESSES IN THE REGION INCLUDING HONG KONG AND TAIWAN AT&T'S MOVE FOLLOWS THE SIGNING IN FEBRUARY OF A BROAD ACCORD WITH CHINA'S STATE PLANNING COMMISSION IT CALLED FOR AT&T AND CHINA TO COLLABORATE IN EQUIPMENT PHONE AND DATA TRANSMISSION SERVICES AND IN THE CONSTRUCTION OF GIANT CORPORATE COMMUNICATIONS NETWORKS ENCOURAGED BY A MARKET OF OVER ONE BILLION PEOPLE 98 OF WHOM DON'T HAVE TELEPHONES AT&T SAID ITS CHINESE BUSINESS MAY ECLIPSE ITS US BUSINESS AFTER THE TURN OF THE CENTURY TO MAKE THAT HAPPEN MR WARWICK 58 YEARS OLD SAID AT&T WILL MOVE RAPIDLY TO BUILD A CORPORATE INFRASTRUCTURE IN CHINA IT WILL HAVE BUSINESS UNITS AND PRODUCTION FACILITIES' MAKING TELEPHONE SWITCHES AND OTHER PRODUCTS AT&T AND CHINA WILL ALSO SET UP A RESEARCH FACILITY TO BE COMANAGED BY AT&T BELL LABORATORIES MY JOB IS TO EXECUTE THE MEMORANDUM OF UNDERSTANDING WE HAVE WITH CHINA HE SAID MR WARWICK FACES FORMIDABLE COMPETITION FRANCE'S ALCATELALSTHOM SA IS CURRENTLY CHINA'S LARGEST SUPPLIER OF SWITCHING GEAR AND SWEDEN'S LM ERICSSON IS A MAJOR PROVIDER OF CELLULAR NETWORK EQUIPMENT JAPAN'S NEC CORP AND FUJITSU LTD ARE ALSO MAJOR SUPPLIERS EVERYBODY SEES THE SAME THINGS WE SEE AND THEY'LL WANT THEIR SHARE ACKNOWLEDGED MR WARWICK WHO HAS WORKED AT AT&T FOR 35 YEARS STILL THE EXECUTIVE HAS FOUGHT OFF COMPETITORS BEFORE A CONSTANT ATTACK FROM FOREIGN SUPPLIERS SUCH AS SONY PANASONIC AND CHEAP KOREAN IMPORTS CAUSED AT&T CONSUMER PRODUCTS TO SUFFER LOSSES OF MORE THAN 200 MILLION A YEAR WHEN MR WARWICK ASSUMED MANAGEMENT OF THE OPERATION IN THE MID1980S WITHIN TWO YEARS HOWEVER HE HAD CUT THE WORK FORCE IN HALF SHIPPED MOST TELEPHONE PRODUCTION OFFSHORE AND RETURNED AT&T TO DOMINANCE IN THE US MARKET THE BUSINESS UNIT PLAN HE DEVISED FOR CONSUMER PRODUCTS BECAME A MODEL FOR AT&T'S CURRENT SUCCESSFUL BUSINESSUNIT STRUCTURE AT AT&T MICROELECTRONICS MR WARWICK SHUT DOWN UNPROFITABLE OPERATIONS SUCH AS DYNAMIC MEMORY CHIPS HE REFOCUSED THE UNIT ON HIGHERGROWTH HIGHERMARGIN BUSINESSES INCLUDING DIGITAL SIGNAL PROCESSORS AND DATA MODEM CHIPS HE ALSO ARRANGED CHIP PROCESSING AND MANUFACTURING VENTURES WITH NEC CORP AND MITSUBISHI ELECTRIC CORP AND HE WON KEY SUPPORT FOR A NEW AT&T CHIP CALLED HOBBIT WHICH WILL BE USED IN FUTURE POCKET COMMUNICATORS CURTIS J CRAWFORD CURRENTLY VICE PRESIDENT OF AT&T MICROELECTRONICS WILL SUCCEED MR WARWICK AT&T SAID 9306160065 930616 BUSINESS BRIEF BELMAC CORP LIGHT SECURITIES ACQUIRES INTEREST IN HEALTH CONCERN BELMAC CORP SAID IN TAMPA FLA THAT 585 OF ITS SHARES OUTSTANDING HAVE BEEN BOUGHT IN AN OPENMARKET PURCHASE BY LIGHT SECURITIES CO AN INVESTMENT FIRM BASED IN SAN FRANCISCO A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION DATED JUNE 2 SHOWS LIGHT SECURITIES BUYING 802600 SHARES OF BELMAC AN INTERNATIONAL HEALTH CARE AND PHARMACEUTICAL COMPANY WARREN LIGHT OWNER OF LIGHT SECURITIES SAID YESTERDAY HE HAS BOUGHT 30000 ADDITIONAL SHARES SINCE JUNE 2 HIS VARIOUS PURCHASES HE SAID HAVE BEEN MADE IN THE WAKE OF A CHANGE IN MANAGEMENT AT BELMAC THREE OF THE COMPANY'S TOP OFFICIALS RESIGNED LAST MARCH LIGHT SECURITIES DESCRIBED THE STOCK PURCHASES AS BEING MADE FOR INVESTMENT PURPOSES 9306160064 930616 BUSINESS BRIEF SIERRA TUCSON COS FACILITY'S CLOSURE TO CAUSE CHARGE IN SECOND QUARTER THE COMPANY SAID IT EXPECTS TO REPORT A NONRECURRING CHARGE IN THE SECOND QUARTER FOR ITS WRITEDOWN OF THE FACILITY AND RELATED ASSETS THE COMPANY DIDN'T ESTIMATE HOW LARGE THE CHARGE WOULD BE JOHN H SCHMITZ PRESIDENT AND CHIEF OPERATING OFFICER SAID THE ADOLESCENT TREATMENT FACILITY DIDN'T MEET THE COMPANY'S FINANCIAL EXPECTATIONS BUT ADDED THAT THE COMPANY WOULD CONTINUE TO TREAT ADOLESCENTS WITH SUBSTANCEABUSE PROBLEMS AT ITS MAIN FACILITY SIERRA TUCSON'S STOCK FELL 25 CENTS TO 450 IN NATIONAL OVERTHECOUNTER TRADING 9306160063 930616 TECHNOLOGY FDA TO MAKE DRUG TESTERS DISCLOSE FINANCIAL TIES WASHINGTON AP THE FOOD AND DRUG ADMINISTRATION PLANS TO REQUIRE THAT DRUG RESEARCHERS DISCLOSE WHETHER THEY HAVE A FINANCIAL STAKE IN THE DRUGS THEY'RE TESTING CAN A FINANCIAL STAKEHOLDER APPROACH SCIENTIFIC INQUIRY WITHOUT INTRODUCING SOME BIAS ASKED FDA COMMISSIONER DAVID KESSLER I THINK PROBABLY NOT DRUG COMPANIES FARM OUT MUCH OF THEIR RESEARCH ON EXPERIMENTAL DRUGS HIRING UNIVERSITIES OR PRIVATE COMPANIES TO CONDUCT CLINICAL TRIALS AND OTHER ACTIVITIES THE DRUG MAKERS PAY FOR THAT AND THE RESEARCHERS GET THEIR MONEY REGARDLESS OF THEIR FINDINGS WHAT ISN'T DISCLOSED IS WHETHER INDIVIDUAL RESEARCHERS HAVE SOME KIND OF FINANCIAL INTEREST IN THE COMPANY OR THE PRODUCT THAT COULD BE AFFECTED BY THE FINDINGS OF THEIR RESEARCH WE ARE CONSIDERING POLICIES THAT WOULD REQUIRE SPONSORS TO ASSURE US THAT THEIR INVESTIGATORS HAVE NOT ENGAGED IN ANY RELATIONSHIPS WE CONSIDER PROBLEMATIC HE SAID ADDING THAT THE FDA WOULD DRAFT PROPOSED RULES THIS YEAR THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION THE TRADE GROUP FOR THE INDUSTRY REACTED CAUTIOUSLY WE KNOW THAT THIS IS A SUBJECT THAT CAUSES CONCERN TO SOME PEOPLE AND ONCE WE HAVE SEEN THE PROPOSAL WE WILL STUDY IT CAREFULLY SAID SPOKESMAN JOHN GIBBONS 9306160062 930616 BUSINESS BRIEF DART GROUP CORP PARENT REPORTS NET INCOME PLUNGED IN FISCAL 1ST QUARTER DART GROUP CORP SAID FISCAL FIRSTQUARTER NET INCOME PLUNGED 84 DUE TO DECREASED INVESTMENT INCOME INCREASED EXPENSES AND A ONETIME ACCOUNTING GAIN A YEAR EARLIER NET FOR THE QUARTER ENDED APRIL 30 WAS 550000 OR 24 CENTS A SHARE COMPARED WITH THE YEAREARLIER 35 MILLION OR 192 A SHARE THE YEAREARLIER RESULTS REFLECT A 11 MILLION ACCOUNTING GAIN FOR ITS TRAK AUTO CORP UNIT DART'S REVENUE INCREASED NEARLY 7 TO 320 MILLION FROM 300 MILLION TRAK AND CROWN BOOKS CORP ANOTHER DART UNIT ALSO POSTED LOWER EARNINGS FOR THE QUARTER ENDED MAY 1 CROWN'S PROFIT WAS 1 MILLION OR 19 CENTS A SHARE COMPARED WITH 15 MILLION OR 28 CENTS A SHARE FOR THE QUARTER ENDED MAY 2 TRAK'S NET FELL TO 92000 OR ONE CENT A SHARE FROM 32 MILLION OR 54 CENTS A SHARE WHICH INCLUDES A ONETIME ACCOUNTING GAIN OF 17 MILLION DART OF LANDOVER MD IS A REAL ESTATE AND SUPERMARKET CONCERN WITH MAJORITY HOLDINGS IN TRAK AND CROWN BOOKS 9306160061 930616 DALLASAREA FIRMS PLEDGE BETTER RECORDS IN HIRING MINORITIES DALLAS IN AN UNUSUAL EFFORT TO BOOST THE ECONOMIC PROSPECTS OF ETHNIC MINORITIES HERE A GROUP OF LARGE DALLASAREA COMPANIES PLEDGED TO IMPROVE THEIR MINORITYHIRING RECORDS AND PUBLISH THE RESULTS THE 36MEMBER DALLAS TOGETHER FORUM WHICH INCLUDES REPRESENTATIVES OF AMR CORP TEXAS INSTRUMENTS INC AUSTIN INDUSTRIES INC PEPSICO INC'S FRITOLAY UNIT AND JC PENNEY CO ALSO PROMISED TO INCREASE THEIR PURCHASES FROM MINORITYOWNED SUPPLIERS ALTHOUGH EACH SIGNATORY WAS LEFT TO ESTABLISH ITS INTERNAL GOALS PROMOTERS OF THE EFFORT SAID THE PUBLIC NATURE OF THE PROMISE WILL ENSURE AN AGGRESSIVE EFFORT THE AGREEMENT CALLS FOR DISCLOSURE OF THE BREAKDOWN OF RECENT MINORITY HIRES BUT NOT OVERALL EMPLOYEE LEVELS THE DALLAS TOGETHER FORUM WAS FORMED IN 1991 IN RESPONSE TO GROWING ETHNIC TENSION IN THE CITY AND PERVASIVE UNEMPLOYMENT AMONG MINORITIES THE POPULATION OF DALLAS IS ABOUT 32 BLACK 20 HISPANIC AND 5 ASIAN AND OTHER GROUPS PETTIS NORMAN AN AFRICANAMERICAN BUSINESSMAN SAID DALLAS LAGS BEHIND SUCH CITIES AS ATLANTA IN INCORPORATING ITS MINORITY GROUPS INTO THE ECONOMIC MAINSTREAM CORPORATE AMERICA BASICALLY IS STILL HEAVILY TILTED IN FAVOR OF ANGLO MEN AT EVERY LEVEL HE SAID THE WOMEN BUSINESS DEVELOPMENT COUNCIL DALLAS HELD A NEWS CONFERENCE TO PROTEST TO PROJECT'S EXCLUSION OF WOMAN VENDORS FROM CONTRACT GOALS 9306160060 930616 MARKETING BRIEF ROCKEFELLER GROUP INC INTEREST IN CABLE NETWORK IS SOLD TO 3 OTHER PARTNERS ROCKEFELLER GROUP INC ONE OF FOUR FOUNDING PARTNERS OF CABLE TV'S ARTS & ENTERTAINMENT NETWORK SAID IT SOLD ITS 125 STAKE TO THE OTHER THREE PARTNERS TERMS WEREN'T DISCLOSED AS A RESULT HEARST CORP AND CAPITAL CITIES/ABC VIDEO ENTERPRISES A UNIT OF CAPITAL CITIES/ABC INC WILL INCREASE THEIR STAKES IN THE SERVICE TO 375 EACH WHILE RCA CABLE INC A UNIT OF GENERAL ELECTRIC CO'S NATIONAL BROADCASTING CO WILL INCREASE ITS STAKE TO 25 THE THREE HAVE ALSO EXTENDED THEIR PARTNERSHIP AGREEMENT FOR AN ADDITIONAL 50 YEARS BEYOND THIS SUMMER'S EXPIRATION A SPOKESMAN FOR ROCKEFELLER GROUP WHICH IS PRIMARILY A REAL ESTATE COMPANY SAID THE COMPANY SOLD ITS SHARE AT THE REQUEST OF THE OTHER THREE PARTNERS WHO WANTED TO RESTRUCTURE THE AGREEMENT A SPOKESMAN FOR A&E SAID THE CHANGE IN OWNERSHIP IS NOT EXPECTED TO HAVE ANY EFFECT ON ITS PROGRAMMING WHICH IS A MIX OF COMEDY DRAMA DOCUMENTARY AND ARTS PROGRAMMING 9306160059 930616 BUSINESS BRIEF MORTON INTERNATIONAL SAYS CHARGES WILL LEAD TO LOSS BUT SEES A REBOUND CHICAGO MORTON INTERNATIONAL INC EXPECTS TO REPORT A NET LOSS FOR THE FISCAL FOURTH QUARTER ENDING THIS MONTH AFTER TAKING ABOUT 195 MILLION IN PRETAX ACCOUNTING AND OTHER CHARGES OPERATING EARNINGS HAMPERED BY RECESSIONSLOWED SPECIALTY CHEMICAL SALES IN EUROPE AND JAPAN WILL BE BETWEEN 70 CENTS AND 75 CENTS A SHARE FOR THE QUARTER COMPARED WITH THE YEARAGO QUARTER'S 70 CENTS A SHARE SAID CHARLES S LOCKE CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE MAKER OF SALT SPECIALTY CHEMICALS AND AUTOMOTIVE AIR BAGS EXPECTS TO REPORT FISCAL FOURTHQUARTER AND FULLYEAR RESULTS IN LATE JULY MR LOCKE SAID HE ISN'T WORRIED BY THE FISCAL YEAREND EARNINGS FIZZLE MORTON'S NET INCOME IS POISED TO REBOUND SHARPLY IN FISCAL 1994 DRIVEN BY A PROJECTED NEARDOUBLING IN AIR BAG SALES TO 1 BILLION FROM 500 MILLION FOR THE YEAR ENDING JUNE 30 HE PREDICTED FISCAL FOURTHQUARTER SALES ARE EXPECTED TO INCREASE 10 TO 13 TO 560 MILLION TO 570 MILLION FROM 5055 MILLION IN THE YEARAGO QUARTER MR LOCKE ISSUED HIS ESTIMATE OF 70 CENTS TO 75 CENTS A SHARE FOR FOURTHQUARTER OPERATING EARNINGS YESTERDAY AFTERNOON EARLIER IN THE DAY MORTON'S SHARE PRICE FELL SHARPLY IN THE WAKE OF AN INTERVIEW CARRIED ON THE DOW JONES NEWS SERVICE IN WHICH MR LOCKE HAD SAID THAT MORTON'S FOURTHQUARTER OPERATING EARNINGS WOULD BE ABOUT 70 CENTS A SHARE MORTON SHARES CLOSED DOWN 2625 AT 70625 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING CHARGE FOR BENEFITS MR LOCKE SAID MORTON WILL TAKE A PRETAX ACCOUNTING CHARGE FOR RETIREE HEALTH BENEFITS OF ABOUT 150 MILLION IN THE CURRENT QUARTER HE SAID THE COMPANY EXPECTED TO TAKE AN ADDITIONAL PRETAX CHARGE OF ABOUT 15 MILLION TO BOOST RESERVES FOR ENVIRONMENTAL LIABILITIES AT SEVERAL SUPERFUND TOXIC WASTE SITES AROUND THE COUNTRY ANOTHER CHARGE OF ABOUT 30 MILLION COVERS MOSTLY PLANT CLOSINGS AND RELOCATIONS MORTON EXPECTS ANNUAL SAVINGS OF ABOUT 15 MILLION ONCE THE RESTRUCTURING IS COMPLETED MORTON DOMINATES THE AIR BAG BUSINESS WORLDWIDE IT HAS ABOUT 55 TO 60 OF THE US AIR BAG MARKET AND NEARLY 80 OF THE MARKET IN JAPAN MR LOCKE SAID CLEVELANDBASED TRW INC IS THE ONLY OTHER COMPETITOR WITH A SIGNIFICANT SHARE OF THE DOMESTIC OR FOREIGN AIR BAG MARKET MR LOCKE SAID THAT IN THE US THERE WILL BE A SUBSTANTIAL INCREASE IN NEW CARS EQUIPPED WITH AIR BAGS AS WELL AS MODELS THAT HAVE PASSENGERSIDE AIR BAGS BECAUSE OF COMPETITIVE PRESSURE THE INSURANCE INSTITUTE FOR HIGHWAY SAFETY ARLINGTON VA ESTIMATES THAT ABOUT TWOTHIRDS OF ALL 1993 MODELYEAR CARS HAVE AT LEAST A DRIVER'SSIDE AIR BAG THE INSTITUTE PREDICTS THAT FIGURE WILL JUMP TO THE 90 RANGE FOR '94 MODEL YEAR CARS BY SEPTEMBER 1996 AIR BAGS MUST BE INSTALLED ON THE DRIVER AND PASSENGER SIDE OF 95 OF ALL NEW CARS SOLD IN THE US AND 100 COMPLIANCE WILL BE REQUIRED A YEAR LATER EUROPEAN AIR BAG SALES ARE EXPECTED TO INCREASE SHARPLY BY THE LATTER PART OF THE DECADE AS AUTO COMPANIES START ADOPTING THEM FOR COMPETITIVE REASONS MR LOCKE PREDICTED 9306160058 930616 ECONOMY CLINTON MAY MODIFY PLEDGE TO REDUCE US EMISSIONS OF GREENHOUSE GASES BY TIMOTHY NOAH STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION MAY BACK AWAY FROM ITS PLEDGE TO REDUCE US GREENHOUSE GAS EMISSIONS TO 1990 LEVELS BY THE YEAR 2000 THE ADMINISTRATION WHICH HAD BEEN COUNTING ON THE BTU TAX TO HELP REDUCE EMISSIONS NOW ANTICIPATES THAT WHATEVER ENERGY TAX EMERGES FROM CONGRESS IS UNLIKELY TO REDUCE THESE EMISSIONS SIGNIFICANTLY THE BTU TAX WOULD HAVE BEEN BASED ON BRITISH THERMAL UNITS WHICH MEASURE THE HEATING CONTENT OF FUEL NOW THE ADMINISTRATION IS CONSIDERING ALLOWING COMPANIES TO MEET THE PRESIDENT'S DEMAND FOR REDUCED CARBON AND OTHER EMISSIONS THAT CONTRIBUTE TO GLOBAL WARMING BY REDUCING EMISSIONS OF SUCH GASES OVERSEAS RATHER THAN IN THE US A FINAL DECISION HASN'T BEEN MADE BUT AN INTERAGENCY GROUP CHARGED WITH DRAFTING RECOMMENDATIONS FOR MEETING THE GREENHOUSEGAS PLEDGE IS CONSIDERING THE OPTION ACCORDING TO SUSAN TIERNEY A MEMBER OF THE GROUP AND THE ENERGY DEPARTMENT'S ASSISTANT SECRETARY FOR POLICY PLANNING AND PROGRAM EVALUATION THE GROUP'S RECOMMENDATIONS ARE DUE BY AUGUST IN ADDITION MS TIERNEY SAID ENERGY SECRETARY HAZEL O'LEARY HAS SAID SHE FAVORS THE PLAN IN AN APRIL 21 SPEECH TO COMMEMORATE EARTH DAY PRESIDENT CLINTON SAID I REAFFIRM MY PERSONAL AND ANNOUNCE OUR NATION'S COMMITMENT TO REDUCING OUR EMISSIONS OF GREENHOUSE GASES TO THEIR 1990 LEVELS BY THE YEAR 2000 BUT HE DIDN'T SPELL OUT HOW SUCH REDUCTIONS WOULD BE ACHIEVED PRESIDENT CLINTON WAS FOLLOWING UP ON THE GLOBALWARMING TREATY SIGNED BY THE US AT LAST YEAR'S ENVIRONMENTAL CONFERENCE IN RIO DE JANIERO THE AIM OF THE TREATY IS FOR DEVELOPED NATIONS EITHER INDIVIDUALLY OR JOINTLY TO REDUCE GREENHOUSE EMISSIONS TO THEIR 1990 LEVELS TWENTYFOUR COUNTRIES HAVE PLEDGED SUCH REDUCTIONS INCLUDING GERMANY JAPAN AND CANADA FOR THE CLINTON ADMINISTRATION MEETING ITS PLEDGE WILL REQUIRE REDUCING ANNUAL PROJECTED EMISSIONS OF GREENHOUSE GASES PRINCIPALLY CARBON DIOXIDE BY UP TO 125 MILLION METRIC TONS BY THE YEAR 2000 ACCORDING TO ENERGY DEPARTMENT CALCULATIONS ONE ADVANTAGE OF THE BTU TAX AND A REASON IT WAS CHAMPIONED BY VICE PRESIDENT AL GORE AMONG OTHERS WAS THAT AT LEAST AS ORIGINALLY INTRODUCED IT WOULD HAVE ACHIEVED ROUGHLY ONEFIFTH OF THE REDUCTIONS NEEDED TO MEET THE PLEDGE NOW THAT THE BTU TAX HAS BEEN PUT ASIDE HOWEVER THE OUTLOOK FOR SUBSTANTIAL GREENHOUSEGAS REDUCTIONS THROUGH AN ENERGY TAX APPEARS DIM A TRANSPORTATION TAX PROPOSED BY SEN JOHN BREAUX D LA FOR EXAMPLE WOULD REDUCE CARBON EMISSIONS BY ONLY 73 MILLION METRIC TONS BY 2000 COMPARED WITH A REDUCTION OF 25 MILLION METRIC TONS WITH THE BTU TAX ACCORDING TO THE ENERGY DEPARTMENT WITH THE LOSS OF THE BTU TAX THE CLINTON ADMINISTRATION IS FEELING MORE PRESSURE TO EMBRACE THE NOTION PUT FORWARD BY UTILITY COMPANIES OF INCLUDING IN ITS COUNT REDUCTIONS OF GREENHOUSE EMISSIONS THAT ARE ACHIEVED BY US COMPANIES NOT ONLY IN THE US BUT ALSO OVERSEAS A NUMBER OF UTILITIES HAVE SUBSIDIARIES AND INVESTMENTS OVERSEAS ADVOCATES INCLUDING SOME ENVIRONMENTALISTS ARGUE THAT IT DOESN'T MATTER WHETHER THE PLEDGE IS FULFILLED ON US SHORES OR OVERSEAS YOU STILL END UP WITH AN EXACT EQUIVALENT IN WORLDWIDE EMISSIONS REDUCTIONS DECLARED JOE GOFFMAN A SENIOR ATTORNEY AT THE ENVIRONMENTAL DEFENSE FUND THE PRINCIPAL ADVANTAGE THEY CONTEND IS THAT EMISSION REDUCTIONS CAN BE ACHIEVED MORE CHEAPLY AND EASILY OVERSEAS PARTICULARLY IN LESSDEVELOPED NATIONS THAT'S BECAUSE IN MANY OF THESE COUNTRIES POLLUTION CONTROLS ARE LESS RIGID OBSERVES JOHN ROWE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NEW ENGLAND ELECTRIC SYSTEM A MASSACHUSETTSBASED UTILITY BUT OPPONENTS ARGUE THAT THE PLAN COULD ANGER LESSDEVELOPED NATIONS WHICH HAVE OFTEN CRITICIZED THE US AND OTHER DEVELOPED NATIONS FOR DICTATING MANAGEMENT OF RAIN FORESTS ABROAD WHILE DOING LITTLE TO REDUCE CONSUMPTION OF NATURAL RESOURCES AT HOME WE CAN AND SHOULD MEET THE INITIAL COMMITMENT THAT THE PRESIDENT MADE THROUGH DOMESTIC ACTIONS RATHER THAN OVERSEAS SAID DAN LASHOFF SENIOR SCIENTIST AT THE NATURAL RESOURCES DEFENSE COUNCIL IT'S CLEARLY ILLEGITIMATE TO SUBSTITUTE ONE FOR THE OTHER 9306160057 930616 TECHNOLOGY & HEALTH RAYOVAC CORP UNVEILS REUSABLE ALKALINE BATTERIES BY KAREN R JACOBS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RAYOVAC CORP INTRODUCED A RECHARGEABLE ALKALINE BATTERY BUT ANALYSTS QUESTIONED THE COMPANY'S PROJECTION FOR THE NEW PRODUCT'S MARKET THE PRIVATELY HELD MADISON WIS COMPANY SAID ITS NEW BATTERY RENEWAL WHICH IT SAYS IS THE FIRST RECHARGEABLE ALKALINE BATTERY HAS THE POWER AND LIFE OF A REGULAR ALKALINE BATTERY BUT CAN BE REUSED 25 TIMES OR MORE THROUGH RECHARGING ALTHOUGH REPLACEMENT RECHARGEABLE BATTERIES GENERALLY MADE WITH NICKEL CADMIUM MAKE UP ONLY ABOUT 83 MILLION OF THE 28 BILLION TOTAL RETAIL HOUSEHOLD BATTERY MARKET IN THE US RAYOVAC OFFICIALS SAID THEY ARE CONFIDENT THAT THEIR PRODUCT WILL BOOST THOSE SALES TO SEVERAL HUNDRED MILLION DOLLARS A YEAR THE NEW BATTERY IN SIZES C D AA AND AAA IS TYPICALLY USED IN FLASHLIGHTS PORTABLE RADIOS CASSETTE PLAYERS AND TOYS THE REAL ISSUE IS HOW MANY PEOPLE WANT TO SPEND MONEY ON RECHARGEABLE BATTERIES SAID JACK SALZMAN AN ANALYST WITH GOLDMAN SACHS & CO YOU'RE LOOKING AT 20 TO 25 MINIMUM TO BUY INCLUDING THE BATTERIES AND THE CHARGER THIS IS NOT DEMONSTRABLY CHEAPER THAN EXISTING RECHARGEABLE BATTERIES RAYOVAC WILL CHARGE 5 TO 6 FOR THE BATTERIES AND 15 AND 30 FOR AN ELECTRICAL CHARGING DEVICE ABOUT THE SIZE OF A VIDEOTAPE COMPETITORS DIDN'T APPEAR TO BE CONCERNED ABOUT THE ANNOUNCEMENT A SPOKESMAN FOR DURACELL INTERNATIONAL INC SAID WE DON'T VIEW IT AS IN ANY WAY A CHALLENGE TO DURACELL PRODUCTS DURACELL SHARES WHICH HAD DECLINED 1125 MONDAY ROSE 875 CENTS A SHARE YESTERDAY TO CLOSE AT 2875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING SPOKESMEN FOR RALSTONPURINA CO'S EVEREADY UNIT AND EASTMAN KODAK CO DECLINED TO COMMENT ALKALINE BATTERIES HAVE ZINC AND MANGANESE DIOXIDE AS ACTIVE INGREDIENTS NICKEL CADMIUM BATTERIES HAVE ACTIVE INGREDIENTS OF NICKEL COMPOUNDS AND CADMIUM COMPOUNDS RAYOVAC SAID THE RENEWAL BATTERIES WILL LAST AS MUCH AS THREE TIMES LONGER THAN FULLY CHARGED NICKEL CADMIUM BATTERIES AND HAVE A SHELF LIFE OF AS MUCH AS FIVE YEARS COMPARED WITH A THREEMONTH SHELF LIFE FOR NICKEL CADMIUM BATTERIES RAYOVAC ALSO SAID RENEWAL BATTERIES CAN BE DISPOSED OF SAFELY WITH HOUSEHOLD WASTE IN LANDFILLS AND INCINERATORS BUT ONE SCIENTIST TOOK ISSUE WITH SEVERAL RAYOVAC CLAIMS ABOUT THE PRODUCT NICKEL CADMIUM AND METAL HYDRIDE BATTERIES PROBABLY WON'T BE REPLACED BY THIS SYSTEM AND SHOULDN'T BE SAID DR GEORGE MAYER PRESIDENT AND CHIEF SCIENTIST AT BATTERY TECHNOLOGY CENTER INC IN PITTSBURGH A BATTERY RESEARCH COMPANY THE CHARGING TIME SEEMS LONGER FOR SIZE VERSUS NICKEL CADMIUM AND METAL HYDRIDE HE SAID DR MAYER ALSO QUESTIONED WHETHER RAYOVAC'S PRODUCT HAD SIGNIFICANT ECOLOGICAL ADVANTAGES OVER NICKEL CADMIUM BATTERIES ENVIRONMENTALLY RESPONSIBLE RECYCLING FOR CADMIUM IS AVAILABLE AND CADMIUM SHOULD CONTINUE TO BE USED AND RECYCLED HE SAID RAYOVAC WHICH EMPLOYS 2800 PEOPLE WORLDWIDE HAD REVENUE OF 450 MILLION LAST YEAR 9306160056 930616 ENVIRONMENT BY CHARLES MCCOY ENVIRONMENTALISTS RAILED ABOUT POLITICAL MEDDLING IN WILDLIFE POLICY DECISIONS DURING THE BUSH AND REAGAN YEARS AT TIMES WITH JUSTIFICATION THE REPUBLICANS ARE OUT OF THE WHITE HOUSE BUT DOES THE POLITICAL MEDDLING LIVE ON GOVERNMENT WILDLIFE SCIENTISTS SAY A RECENT DECISION BY THE NATIONAL MARINE FISHERIES SERVICE NOT TO REQUIRE BIG CHANGES IN THE WAY DAMS ON THE COLUMBIA AND SNAKE RIVERS ARE OPERATED CAME OVER OBJECTIONS FROM MANY OF THE AGENCIES' OWN BIOLOGISTS AFTER HEAVY POLITICKING BY PRODAM ECONOMIC INTERESTS OTHER FEDERAL AGENCIES AND NORTHWESTERN CONGRESSMEN INCLUDING HOUSE SPEAKER TOM FOLEY A WASHINGTON DEMOCRAT THE DAMS IN IDAHO OREGON AND WASHINGTON ARE THE MAIN CULPRITS IN A STEEP DROP IN SALMON POPULATIONS ALONG THE TWO RIVERS ENVIRONMENTALISTS WANT BIG CHANGES IN THE WAY THE DAMS OPERATE BECAUSE THEY MINCE SALMON BY THE MILLIONS BUT THE DAMS ALSO PROVIDE CHEAP POWER AND IRRIGATION WATER AND HAVE POLITICALLY POTENT SUPPORTERS INCLUDING FARMERS AND SHIPPERS ANOTHER PRODAM CONSTITUENCY IS THE FEDERAL BUREAUCRATS AT THE ARMY CORPS OF ENGINEERS BUREAU OF RECLAMATION AND BONNEVILLE POWER ADMINISTRATION WHICH OPERATE THE DAMS ROLLAND SCHMITTEN REGIONAL DIRECTOR OF THE FISHERIES SERVICE'S PORTLAND ORE OFFICE ACKNOWLEDGES THAT THE AGENCY BACKED OFF A PRELIMINARY FINDING THAT DAM OPERATIONS JEOPARDIZE ENDANGERED SALMON POPULATIONS AND THUS COULD BE SUBJECT TO MAJOR ALTERATIONS HE CONCEDES THAT THE FINDING HAD BEEN ATTACKED BY LOBBYISTS AND THE OTHER AGENCIES BUT DENIES THAT POLITICAL PRESSURE AFFECTED HIS AGENCY'S STANCE SAYING IT USED THE FINDING TO WIN CONCESSIONS FROM DAM OPERATORS AN AIDE TO MR FOLEY SAYS THE HOUSE SPEAKER EXERTED NO UNUSUAL INFLUENCE ON THE AGENCY NONETHELESS ENVIRONMENTALISTS AND SOME FEDERAL BIOLOGISTS ARE LIVID WE THINK GOOD SCIENCE HAS GOTTEN ROLLED AGAIN BY POWERFUL POLITICAL INTERESTS SAYS CHARLES RAY HEAD OF IDAHO RIVERS UNITED MINNESOTA HAS COMPLETED THE KIND OF COMPREHENSIVE STUDY OF ITS TIMBERLANDS THAT THE CLINTON ADMINISTRATION WANTS FOR ALL OF THE NATION'S FORESTS THE PROCESS HAS BEEN TIMECONSUMING EXPENSIVE AND DIVISIVE IN 1989 PRODDED BY CITIZEN CONCERNS ABOUT RAPIDLY RISING HARVEST LEVELS THE STATE BEGAN A SURVEY OF ITS FORESTS TO COLLECT DATA AND MAKE RECOMMENDATIONS FOR UPDATING ITS TIMBER LAWS THE STUDY THE FIRST OF ITS KIND BY A STATE FOCUSED ON SUCH POLICY ISSUES AS BIODIVERSITY AND SUSTAINABLE TIMBER MANAGEMENT A DRAFT IS NOW COMPLETE BUT ALMOST NO ONE IS COMPLETELY HAPPY WITH IT TIMBER INTERESTS SAY THE STUDY PROVES THEIR LOGGING PRACTICES HAVEN'T TRASHED MINNESOTA FORESTS BUT COMPLAIN IT RAISES TOO MANY ENVIRONMENTAL CONCERNS ENVIRONMENTALISTS SAY IT PROVES LOGGING HAS HARMED WILDLIFE BUT DOESN'T GO FAR ENOUGH IN URGING CHANGES IN FOREST MANAGEMENT SOME STATE LEGISLATORS CARP ABOUT THE COST ROUGHLY 1 MILLION THE STUDY DOES PROVIDE VALUABLE SCIENTIFIC DATA THAT POLICY MAKERS CAN USE IN SETTING FORESTMANAGEMENT STRATEGIES IT CONCLUDES THAT EVEN CURRENT HARVESTING LEVELS WHICH HAVE DOUBLED IN THE PAST DECADE AS BIG LUMBER COMPANIES HAVE EXPANDED IN MINNESOTA WHERE NARY A SPOTTED OWL ROAMS WILL EVENTUALLY DAMAGE SONGBIRDS AND OTHER SPECIES NOT EVERYBODY IS HAPPY WITH THIS EXERCISE BUT WE THINK IT'S VALUABLE WARNING THAT WE'VE GOT TO BE CAREFUL WITH THIS RESOURCE SAYS MICHAEL KILGORE PROJECT DIRECTOR FOR THE STATE ENVIRONMENTAL QUALITY BOARD THE DEATH OF ANOTHER CALIFORNIA CONDOR RAISES NEW QUESTIONS ABOUT A HIGHPROFILE COSTLY EFFORT TO SAVE A SPECIES NIKO A ONEYEAROLD FEMALE WITH A NINEFOOT WINGSPAN WAS ELECTROCUTED LAST MONTH WHEN SHE CLIPPED A POWER LINE SHE WAS ONE OF EIGHT CONDORS RELEASED INTO THE WILD IN SOUTHERN CALIFORNIA LAST YEAR PART OF A PROGRAM DATING BACK TO 1976 THAT HAS COST 15 MILLION SO FAR ANOTHER OF THE RARE BIRDS DIED LAST OCTOBER AFTER INGESTING ANTIFREEZE THESE AND OTHER INCIDENTS HAVE CONVINCED BIOLOGISTS FROM THE US FISH AND WILDLIFE SERVICE THAT THE SITE CHOSEN FOR THE CONDOR RELEASES 53000 ACRES OF FOREST ONLY 70 MILES FROM LOS ANGELES IS TOO CLOSE TO CIVILIZATIONAS SOME CRITICS OF THE PROGRAM HAD WARNED NOW THE SERVICE PLANS TO LURE THE BIRDS TO MORE REMOTE HAUNTS MORE FUNDAMENTALLY THE GREAT BIRDS' TROUBLES REKINDLE CRITICISM THAT ALL THE CONDOR MILLIONS WOULD HAVE BEEN BETTER SPENT PRESERVING ECOSYSTEMS RATHER THAN TRYING TO SAVE ONE FARGONE SPECIES HOWEVER MAGNIFICENT SOME PEOPLE MAY FIND IT SUCH CRITICISM HAS COME FROM SOME CONSERVATIONISTS INCLUDING ECOLUMINARIES LIKE DAVID BROWER FORMER EXECUTIVE DIRECTOR OF THE SIERRA CLUB AND FOUNDER OF SEVERAL OTHER CONSERVATION GROUPS THE ISSUE OF WHETHER TO FOCUS ON ECOSYSTEMS OR INDIVIDUAL SPECIES IS THE SUBJECT OF AN INCREASINGLY BITTER DEBATE OVER THE DIRECTION OF THE NATION'S CONSERVATION POLICIES ROBERT MESTA A FISH AND WILDLIFE CONDOR BIOLOGIST CONCEDES THAT THE CRITICS' ARGUMENTS MAKE SOME SENSE BUT HE SAYS THE CONDOR PROGRAM ISN'T AS COSTLY AS SOME SPECIESSALVATION PROJECTS AND AS A MATTER OF CONSCIENCE IF WE HAVE THE ABILITY TO SAVE A SPECIES THAT MAN HAS ALMOST EXTINGUISHED WE MUST DO IT HE SAYS THE PROGRAM PLANS TO INTRODUCE EIGHT MORE CONDORS INTO THE WILD IN DECEMBER THERE ARE NOW 76 CONDORS LEFT IN THE WORLD ALL BUT SIX IN ZOOS CALIFORNIA PROSECUTORS FEAR THE STATE'S BUDGET TROUBLES MAY CRIMP THEIR OFTEN PIONEERING ENVIRONMENTAL ENFORCEMENT EFFORTS TWO COUNTIES ALREADY HAVE STOPPED PROSECUTING ENVIRONMENTAL CRIMES AND OTHERS PLAN TO DO SO IF EXPECTED CUTS IN COUNTY FUNDING GO THROUGH THE NATURE CONSERVANCY IS WORKING WITH CALIFORNIA FARMERS TO RESTORE OAK GROVES IN AREAS SOME OF THOSE FARMERS CLEARED OF OAKS 50 YEARS OR MORE AGO THESE GUYS KNOW HOW TO GROW THINGS INCLUDING OAKS SAYS THE NATURE CONSERVANCY'S STEVE JOHNSON 9306160055 930616 BUSINESS BRIEF WITCO CORP HEADQUARTERS AND 800 JOBS WILL MOVE TO CONNECTICUT LURED BY AN 8 MILLION GRANT FROM CONNECTICUT WITCO CORP SAID IT WILL MOVE ITS HEADQUARTERS AND ABOUT 800 JOBS TO GREENWICH CONN WITCO WHICH WILL MOVE ITS HEADQUARTERS FROM MANHATTAN AND ITS ADMINISTRATIVE OFFICES FROM NEW JERSEY HAS COMMITTED TO STAY IN CONNECTICUT FOR AT LEAST 10 YEARS WITH AT LEAST 800 EMPLOYEES THE SPECIALTY CHEMICALS AND PETROLEUM CONCERN SAID IT WOULD TAKE A 61 MILLION OR 24 CENTASHARE AFTERTAX CHARGE IN THE SECOND QUARTER IN RELATION TO THE MOVE THE COMPANY SAID THE MOVE WOULD TAKE ITS CORPORATE OFFICES TO A 155ACRE OFFICE PARK IN GREENWICH JUST OVER THE NEW YORK BORDER A SPOKESWOMAN FOR NEW YORK CITY'S ECONOMIC DEVELOPMENT OFFICE SAID WITCO HADN'T BEEN INTERESTED IN REMAINING IN NEW YORK AND SO THE CITY NEVER MADE AN OFFER TO KEEP THE CORPORATE HEADQUARTERS 9306160054 930616 WHO'S NEWS HOUSTON INDUSTRIES TAPS SYKORA TO SUCCEED JORDAN AS PRESIDENT HOUSTON HOUSTON INDUSTRIES INC NAMED DON SYKORA PRESIDENT AND CHIEF OPERATING OFFICER AND FORMED A NEW SUBSIDIARY TO PURSUE NONREGULATED BUSINESSES MR SYKORA 62 YEARS OLD MOST RECENTLY PRESIDENT AND CHIEF OPERATING OFFICER OF HOUSTON LIGHTING & POWER CO THE ELECTRIC UTILITY UNIT OF HOUSTON INDUSTRIES SUCCEEDS DON JORDAN AS PRESIDENT MR JORDAN 61 REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER R STEVE LETBETTER 45 GROUP VICE PRESIDENT OF FINANCE AND REGULATORY RELATIONS WILL SUCCEED MR SYKORA AS PRESIDENT AND OPERATING CHIEF AT THE UTILITY THE NEW SUBSIDIARY HOUSTON INDUSTRIES ENERGY INC WILL CONCENTRATE ON DOMESTIC AND FOREIGN UNREGULATED POWER GENERATION AND DISTRIBUTION MARKETS SAID HOUSTON INDUSTRIES THE UNIT WILL ASSUME RESPONSIBILITY FOR THE HOLDING COMPANY'S OPERATIONS IN ARGENTINA AND ITS NONAFFILIATED TRANSPORTATION FACILITIES HOUSTON INDUSTRIES WILL USE THE NEW UNIT TO EXPAND INTO THE NONREGULATED INDEPENDENT POWERPRODUCER BUSINESS AND TO SELL ELECTRICITY TO LARGE INDUSTRIAL CUSTOMERS AND OTHER UTILITIES SAID A SPOKESMAN THE NEW UNIT'S POWER PROJECTS WILL USE NATURAL GAS THE MOVE DOESN'T REQUIRE REGULATORY APPROVALS HE SAID 9306160053 930616 BUSINESS BRIEF AT&T OFFERS SERVICE AGAINST TOLL FRAUD TO SMALL COMPANIES MORRISTOWN NJ AMERICAN TELEPHONE & TELEGRAPH CO SAID IT IS OFFERING SMALL BUSINESSES AN EXPANDED SERVICE TO DETECT TOLL FRAUD THE NEW EXTRA SERVICE CALLED NETPROTECT PLUS WILL BE AVAILABLE TO SMALL AND MIDSIZE BUSINESSES FOR 10 A MONTH AND A ONETIME 25 INSTALLATION FEE UNDER THE NEW SYSTEM A CUSTOMER GIVES AT&T THREE CONTACTS WHO CAN BE REACHED 24 HOURS A DAY IN CASE AT&T SUSPECTS FRAUDULENT USE OF THE COMPANY'S TOLLFREE LINE SPEEDIER NOTIFICATION MEANS THE TOLLFREE LINE CAN BE TURNED OFF FASTER IN CASE OF FRAUD SAVING THE COMPANY MONEY COMPANIES ARE LIABLE FOR COSTS OF THEIR TOLLFREE LINES EVEN WHEN THE LINES ARE FRAUDULENTLY USED ACCORDING TO A RULING BY THE FEDERAL COMMUNICATIONS COMMISSION THE LONGDISTANCE AND TELEPHONE EQUIPMENT GIANT SAID ITS NEW SERVICE IS AIMED AT SMALL AND MIDSIZE BUSINESSES WITH MONTHLY PHONE BILLS THAT ARE LESS THAN 20000 SINCE 1992 AT&T HAS OFFERED ITS BASIC NETPROTECT SERVICE AUTOMATICALLY TO ALL BUSINESS CUSTOMERS FREE OF CHARGE LARGE COMPANIES HAD THE OPTION TO PURCHASE EXTRA TOLLFRAUD PROTECTION SERVICES AT&T BASED IN NEW YORK SAID SUSPICIOUS CALLING PATTERNS CAN BE IDENTIFIED BY A HIGH NUMBER OF CALLS TO CERTAIN COUNTRIES OR BY HEAVY CALLING ON WEEKENDS AND NIGHTS WHEN EMPLOYEES AREN'T AROUND THE COMPANY SAID THAT SINCE LAST FALL MORE THAN 2500 ALLEGED HACKERS HAVE BEEN THROWN OFF THE 800 NETWORK AND ABOUT 1000 CUSTOMERS HAVE BEEN NOTIFIED EACH MONTH ABOUT SUSPECTED TOLL FRAUD 9306160052 930616 AIG UNIT ARRANGES NEW CREDIT NEW YORK AMERICAN INTERNATIONAL GROUP INC SAID ITS INTERNATIONAL LEASE FINANCE CORP UNIT RECEIVED AN 850 MILLION REVOLVING CREDIT FACILITY TO MEET SHORTTERM LIQUIDITY NEEDS RELATED TO COMMERCIAL PAPER ISSUED BY THE UNIT THE NEW FACILITY EFFECTIVE JUNE 1 REPLACES A 480 MILLION FACILITY THAT MATURED MAY 31 UNION BANK OF SWITZERLAND ACTED AS AGENT AND ARRANGED THE FACILITY WHICH WAS OVERSUBSCRIBED BY 100 MILLION THE UNIT SAID IN ADDITION TO UNION BANK 23 BANKS PARTICIPATED IN THE CREDIT FACILITY AIG IS A MAJOR UNDERWRITER OF COMMERCIAL AND INDUSTRIAL INSURANCE IN THE US ITS UNIT LEASES AND REMARKETS ADVANCED TECHNOLOGY COMMERCIAL JET ENGINES TO AIRLINES AROUND THE WORLD 9306160051 930616 LEISURE & ARTS BOOKSHELF THE DYING DREAMS OF A MAN AND HIS SOCIETY BY LEE LESCAZE TWICE ADAM KINDL HAS HEARD THE CRY THE RUSSIANS ARE HERE THE FIRST TIME IT MEANT THE END OF WORLD WAR II AND YOUNG ADAM'S RELEASE FROM A NAZI CONCENTRATION CAMP THE SECOND TIME IT WAS 1968 IN PRAGUE BETWEEN THOSE MOMENTS KINDL PURSUED HIS YOUTHFUL DREAMS OF FREEDOM AND JUSTICE AT EVERY TURN HIS NAIVE ENTHUSIASM RAN INTO DISAPPOINTMENT IVAN KLIMA'S JUDGE ON TRIAL KNOPF 549 PAGES 25 TRACES THE DYING OF THE POSTWAR DREAMS THAT INSPIRED THOSE WHO EMBRACED COMMUNISM AFTER THE NAZI EXPERIENCE COMMUNISTS HAD BEEN AMONG THE BRAVEST OPPONENTS OF THE NAZIS AND WITH GERMANY'S DEFEAT CAME UTOPIAN HOPES BUT MR KLIMA IS EVEN MORE INTERESTED IN WHAT HAPPENS AFTER THE BETRAYAL OF HOPE BY THE NEW TYRANNY HIS SUBJECT IS THE BANALITY OF THE COMPROMISED LIFE JUDGE ON TRIAL FIRST COMPLETED IN 1978 AND REVISED IN 1986 IS A SUBTLE PORTRAIT OF A JUDGE WHO CANNOT MAKE A DECISION OF A SOCIETY LACKING MORALITY OF THE POVERTY OF SPIRIT INFLICTED BY THE COMMUNIST REGIMES OF CENTRAL EUROPE KINDL HAD A MOMENT OF ADULT HOPE AND OF PROFESSIONAL IMPORTANCE WITH THE PRAGUE SPRING THAT PRECEDED THE RUSSIAN INVASION HE IS STILL A JUDGE BUT THE LAW IS CORRUPTED BY THE POST1968 CZECH RULERS KINDL ONLY KEEPS HIS POST BY COMPROMISING AND EVEN WITH ALL HIS COMPROMISES HIS POSITION IS IN JEOPARDY AS TYRANNIES GO DAILY LIFE IS NOT HARSH THE BODY LIVES REASONABLY WELL BUT THE MIND IS CONFINED THE WORLD WE INHABIT IS BECOMING LESS AND LESS ADULT MOST PEOPLE HAVE SO LITTLE WORK TO DO KNOW SO LITTLE OF SUFFERING AND ARE ANSWERABLE FOR SO LITTLE THAT THEY CANNOT RECOGNIZE THE ESSENTIAL MOMENT WHEN THEY MOVE FROM AN AREA IN WHICH THEY ARE LED INTO ONE IN WHICH THEY HAVE TO MOVE ACCORDING TO THEIR OWN FREE WILL ONE IN WHICH THEY ARE REQUIRED TO TAKE CHARGE AND PROTECT INSTEAD OF DEMANDING CARE AND PROTECTION KINDL MUSES IN ONE OF THE NOVEL'S MANY STRIKING PASSAGES WITH SUCH A LOSS OF PUBLIC RESPONSIBILITY COMES ABANDONMENT OF PRIVATE MORALITY AFTER THE FIRST COMPROMISE COMES ANOTHER AND ANOTHER IF INTELLECTUAL AND POLITICAL ACTIVITY ARE DISCOURAGED BUT NO SOCIAL DECISION HAS CONSEQUENCES PEOPLE SEEK PLEASURE PROMISCUITY FLOURISHES HEAVY DRINKING IS COMMON AND FAMILIES FALL APART NOT SURPRISINGLY ALL OF MR KLIMA'S WORK WAS BANNED IN CZECHOSLOVAKIA BY THE COMMUNIST GOVERNMENT AND FIRST PUBLISHED ABROAD THIS IS HIS SECOND NOVEL TO BE PUBLISHED IN THE US FOLLOWING LOVE AND GARBAGE IT HAS BEEN TRANSLATED BY AG BRAIN INTO OCCASIONALLY VERY BRITISH BUT GENERALLY GRACEFUL ENGLISH JUDGE ON TRIAL IS NOT A NOVEL OF DRAMATIC ACTION THE INVASION OF PRAGUE HAPPENS OFFSTAGE THE NAZI CAMP IS HORRIBLE BUT MR KLIMA IS NOT SEEKING TO SHOCK WITH OPPRESSION'S PHYSICAL ASPECTS RATHER MR KLIMA GIVES US THE DETAIL OF KINDL'S DAILY LIFE IN THE 1970S INTERSPERSED WITH SCENES FROM HIS YOUTH KINDL BEGAN AS AN OVERLY JUDGMENTAL AND IDEALISTIC YOUTH HE WAS HARSH IN RATING HIS CLASSMATES HE WROTE SCHOOLBOY WORK ON THE IDEAL STATE YET HE ALSO LACKED DECISIVENESS A TRAIT THAT BECAME MORE AND MORE PRONOUNCED HE DESERTED A WOMAN HE LOVED RATHER THAN MAKE THE EFFORT TO MARRY HER HE REMAINED A LAWYER DESPITE ALL THE EVIDENCE OF LAW'S MEANINGLESSNESS SO COMPLETE IS KINDL'S DISILLUSIONMENT THAT HE COMES TO DESCRIBE HIS EARLY DESIRE TO IMPROVE THE WORLD THROUGH THE RULE OF LAW AS CHILDISH IT HAS TAKEN DOZENS OF SMALL BLOWS OVER 40 YEARS TO HAMMER KINDL INTO HIS STATE OF GENERAL INDIFFERENCE THE COMMUNISTS TURNED ON HIS FATHER A LOYAL SUPPORTER AND SENT HIM TO JAIL FOR A TIME HIS MOST RESPECTED LAW PROFESSOR COUNSELED HIM PRIVATELY TO ALWAYS REMEMBER THAT THERE WAS NO SUCH THING IN CZECHOSLOVAKIA AS JUSTICE OR THE LAW ALL THERE WAS WAS A COMPROMISE WITH THE RULERS AS THEY DECREED A GREATER OR LESSER DEGREE OF INJUSTICE THE PROFESSOR TOLD HIM LOOKING BACK KINDL SAYS OF HIS FAILURE TO REACH DECISIONS I INCREASINGLY REALIZED THAT EVERY DIRECTION IN THIS LIFE IS WRONG FROM SOME POINT OF VIEW FATEFUL AND WRONG I ALWAYS USED TO SPEND SO LONG WEIGHING IT UP THAT IN THE END SOMEONE TOOK THE DECISION FOR ME THIS IS A JUDGE WHO FAILS EVERY TRIAL IN HIS PRIVATE LIFE HIS COLDNESS HAS NUDGED HIS WIFE INTO ADULTERY SHE EVENTUALLY FINDS SOLACE IN CHRISTIANITY BUT FOR KINDL THERE IS ONLY MORE OF THE SAME HE TAKES A MISTRESS BUT LEAVES HER AS CASUALLY AS HE TOOK HER UP HIS CHILDREN ARE MINOR CHARACTERS CLEARLY OCCUPYING ONLY A TINY FRACTION OF HIS THOUGHTS AT WORK HIS ANTAGONISTIC BOSS A MAN WHO ALWAYS SIDED WITH THE COMMUNIST PARTY AND RESENTS KINDL'S SYMPATHIES FOR REFORM SEEMS TO HAVE SET A TRAP THE BEST KNOWN OF KINDL'S SEVERAL LEGAL ARTICLES WAS ONE OPPOSING CAPITAL PUNISHMENT NOW HE IS IN CHARGE OF A CASE INVOLVING THE DEATH OF AN OLD WOMAN AND A YOUNG GIRL SURELY IF THE ACCUSED IS GUILTY THE STATE SHOULD DEMAND HIS DEATH IN KEEPING WITH HIS THEME MR KLIMA FINDS AN ADROITLY SHABBY RESOLUTION FOR KINDL HIS LIFE IS ONE WITHOUT EXITS POPULATED BY REGRETS 9306160050 930616 POLITICS & POLICY WHITE HOUSE GETS BETTER IN TREATING ZOE BAIRD PROBLEMS NEW PROCEDURES IMPROVE RATE OF RECOVERY FOR NOMINEES WHO FAILED TO PAY TAXES BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DESPITE THE RECENT BROUHAHA OVER JUDGE STEPHEN BREYER'S SOCIAL SECURITY TAX PROBLEMS THE CLINTON ADMINISTRATION HAS NOMINATED 28 PEOPLE WITH SIMILAR DIFFICULTIES TO VARIOUS OFFICES AND 13 HAVE BEEN CONFIRMED JUDGE BREYER WHO IS CHIEF JUDGE OF THE FEDERAL APPEALS COURT IN BOSTON APPEARED TO HAVE BEEN WOUNDED OVER THE WEEKEND BY STORIES THAT FOR YEARS HE HAD FAILED TO PAY SOCIAL SECURITY TAXES FOR AN ELDERLY HOUSEKEEPER IN THE END PRESIDENT CLINTON DECIDED AGAINST NOMINATING JUDGE BREYER AND INSTEAD CHOSE JUDGE RUTH BADER GINSBURG OF THE FEDERAL APPEALS COURT HERE BUT THE WHITE HOUSE INSISTS THAT THERE ISN'T ANY LINK BETWEEN THE SOCIAL SECURITY TAX ISSUE AND MR CLINTON'S DECISION IN FACT CHECKING OUT AND CORRECTING SOCIAL SECURITY TAX PROBLEMS HAS BECOME STANDARD PRACTICE FOR THE PHALANX OF LAWYERS IN THE WHITE HOUSE'S PERSONNEL AND COUNSEL'S OFFICES IT'S A REGULAR PART OF THE PROCESS SAYS BERNARD NUSSBAUM THE WHITE HOUSE COUNSEL STEVE BREYER WAS A CLASSIC CASE EARLY ON THE PRESIDENT WAS HURT BY A SERIES OF HIGHLY PUBLICIZED SOCIAL SECURITYRELATED REVELATIONS ZOE BAIRD'S NOMINATION FOR ATTORNEY GENERAL WAS WITHDRAWN AFTER IT BECAME KNOWN THAT SHE HAD HIRED AN ILLEGAL IMMIGRANT COUPLE TO BABYSIT AND RUN ERRANDS AND FAILED TO PAY SOCIAL SECURITY TAXES IN ADDITION A MAJOR FACTOR THAT PREVENTED WASHINGTON ATTORNEY CHARLES RUFF FROM BEING NAMED THE NO 2 OFFICIAL IN THE JUSTICE DEPARTMENT WAS HIS FAILURE TO PAY SOME SOCIAL SECURITY TAXES FOR A PARTTIME WORKER BUT AFTER MR RUFF'S INCIDENT THE PRESIDENT AND THE CHAIRMAN OF THE SENATE JUDICIARY COMMITTEE EXCHANGED LETTERS THAT QUIETLY IMPOSED A NEW POLICY THAT FORGAVE INADVERTENT VIOLATIONS OF THE COMPLEX SOCIAL SECURITY TAX LAW ON APRIL 7 CHAIRMAN JOSEPH BIDEN OF DELAWARE WROTE TO THE PRESIDENT AN OTHERWISE OUTSTANDING INDIVIDUAL WHO MISTAKENLY FAILED TO COMPLY WITH THIS LAW IN THE PAST SHOULD NOT BE PERMANENTLY DISQUALIFIED FROM SERVING IN REPLY THE PRESIDENT WROTE ON APRIL 19 PAST FAILURE TO COMPLY DOES NOT NECESSARILY PRECLUDE A QUALIFIED PERSON FROM SERVING THE GOVERNMENT AND THAT IS INDEED THE POLICY OF THIS ADMINISTRATION THE NEW GUIDELINES WERE DETAILED BY HOWARD PASTER THE WHITE HOUSE'S CHIEF LOBBYIST IN A THIRD LETTER ON APRIL 19 TO SEN BIDEN THE GUIDELINES FORGIVE NONPAYMENT OF SOCIAL SECURITY TAXES FOR HOUSEHOLD WORKERS AS LONG AS THE APPOINTEES DIDN'T KNOW THEY HAD VIOLATED THE LAW AND AS SOON AS THEY FOUND OUT MADE BACK PAYMENTS AND STAYED CURRENT MR NUSSBAUM SAYS THAT JUDGE BREYER FIT THIS DESCRIPTION PRECISELY HAVING ACTED TO CORRECT HIS DEFICIENCY AS SOON AS HE READ ABOUT THE ZOE BAIRD FLAP A FEW SENATORS RAISED QUESTIONS ABOUT WHETHER A SUPREME COURT JUSTICE CAN BE EXCUSED NEW POLICY OR NOT BUT CLEARLY ON LOWERLEVEL APPOINTMENTS THE GUIDELINES APPEAR TO BE ADEQUATE PROTECTION TWO JUSTICE DEPARTMENT NOMINEES HAVE ACKNOWLEDGED MAKING BACK PAYMENTS OF SOCIAL SECURITY TAXES FOR HOUSEHOLD WORKERS BEFORE THEIR APPOINTMENTS ON APRIL 29 ELEANOR DEAN ACHESON NOMINATED TO BE ASSISTANT ATTORNEY GENERAL FOR POLICY DEVELOPMENT AND WALTER DELLINGER NAMED AS ASSISTANT ATTORNEY GENERAL FOR THE DEPARTMENT'S OFFICE OF LEGAL COUNSEL DON'T SEEM TO BE IN ANY DANGER OF NOT BEING CONFIRMED BECAUSE OF THE TAX ISSUE 9306160049 930616 CREDIT MARKETS BOND PRICES RALLY ON FAVORABLE INFLATION REPORT THAT DISPELS FEARS OF FED MOVE TO RAISE RATES BY THOMAS D LAURICELLA AND JOHN HUGHES SPECIAL TO THE WALL STREET JOURNAL NEW YORK FAVORABLE INFLATION NEWS HELPED DISPEL FEARS THAT THE FEDERAL RESERVE WILL BE FORCED TO BOOST INTEREST RATES IN THE NEAR FUTURE AND TRIGGERED A RALLY IN THE BOND MARKET BOND PRICES SHOT UP AND INTEREST RATES EASED SHORTLY AFTER THE LABOR DEPARTMENT REPORTED THAT ITS MAIN INFLATION INDICATOR THE CONSUMER PRICE INDEX PUT IN A TAME PERFORMANCE DURING MAY THE CPI INCHED UP JUST 01 OVERALL AND 02 WHEN THE NOTORIOUSLY FICKLE FOOD AND ENERGY COMPONENTS WERE FACTORED OUT WHILE THE INFLATION NEWS WAS LARGELY IN LINE WITH MANY FORECASTS IT ERASED LINGERING CONCERNS THAT THE FED MIGHT BE PROMPTED TO TIGHTEN MONETARY POLICY IT HAD BEEN WIDELY ANTICIPATED THAT IF THE MAY PRODUCER AND CONSUMER INFLATION DATA CONTINUED TO SHOW LARGE RISES AS IN SEVERAL PRIOR MONTHS THE CENTRAL BANK WOULD LIKELY VOTE TO PUSH INTEREST RATES HIGHER HIGHER INTEREST RATES LEAD TO LOWER BOND PRICES ON FRIDAY THE LABOR DEPARTMENT REPORTED THAT PRODUCER PRICES WERE UNCHANGED IN MAY THERE WAS A LITTLE BIT OF FEAR IN THE BACK OF EVERYBODY'S MIND THAT AS MUCH AS THEY WERE LOOKING FOR GOOD NUMBERS THERE COULD STILL BE A BAD SURPRISE SAID JERRY ZUKOWSKI AN ECONOMIST AT PAINEWEBBER GROUP INC AT ONE POINT YESTERDAY MORNING THE BOND MARKET'S BELLWETHER SECURITY THE 30YEAR TREASURY BOND WAS QUOTED NEARLY 1/2 POINT HIGHER A GAIN OF NEARLY 5 FOR A BOND WITH A 1000 FACE AMOUNT BUT PROFITTAKING RISING GOLD PRICES AND NEGATIVE COMMENTS ABOUT THE BUDGET DEFICIT CAUSED PRICES OF THE BELLWETHER BOND TO DECLINE SHORTTERM AND INTERMEDIATETERM BONDS HOWEVER RETAINED MOST OF THE DAY'S GAINS AND ENDED MODERATELY HIGHER THE TREASURY'S 30YEAR BOND ENDED AT A PRICE OF 103 26/32 COMPARED WITH 103 27/32 ON MONDAY THE YIELD WAS UNCHANGED AT 682 THE LATEST FIVEYEAR NOTES ENDED AT A PRICE OF 100 27/32 TO YIELD 517 COMPARED WITH 100 20/32 TO YIELD 522 ON MONDAY TRADERS SAID INTERMEDIATE SECURITIES ALSO GOT A LIFT YESTERDAY FROM A RENEWED ROUND OF MUNICIPAL DEFEASANCE BUYING IN A DEFEASANCE PLAN A STATE OR LOCAL GOVERNMENT ISSUES NEW DEBT TO REFUND OLDER HIGHERINTEREST SECURITIES THE PROCEEDS FROM THE NEW ISSUANCE ARE THEN PARKED IN TREASURYS UNTIL THE OLDER DEBT CAN BE CALLED TRADERS SAID THAT PRICES OF THE LONGTERM BOND BEGAN TO FALL AFTER GOLD PRICES ROSE BUT THE SLIDE PICKED UP ON COMMENTS FROM LAURA TYSON CHAIRWOMAN OF THE COUNCIL OF ECONOMIC ADVISERS MS TYSON UNNERVED BOND TRADERS BY SAYING THAT THE ADMINISTRATION MUST MOVE CAUTIOUSLY IN REDUCING THE BUDGET DEFICIT DUE TO THE CONTRACTIONARY IMPLICATIONS OF LESS GOVERNMENT SPENDING IN ADDITION MS TYSON SAID THAT IT WOULD BE HARD TO FIND ANY ADDITIONAL SPENDING CUTS THOSE REMARKS DIDN'T SEEM TO SIT WELL WITH THE LONG END OF THE MARKET SAID JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC THE NEXT FOCUS FOR THE MARKET WILL BE A NEW ROUND OF SUPPLY AS TRADERS BEGIN TO SET UP FOR NEXT WEEK'S TWOYEAR AND FIVEYEAR NOTE AUCTIONS THE TREASURY IS SLATED TO ANNOUNCE THE DETAILS OF BOTH AUCTIONS TODAY AND ECONOMISTS ARE CALLING FOR A 16 BILLION TWOYEAR NOTE OFFERING AND AN 11 BILLION FIVEYEAR NOTE SALE THAT WOULD MARK A 250 MILLION INCREASE IN THE SIZE OF THE TWOYEAR SALE WHILE THE FIVEYEAR OFFERING WOULD BE LEFT UNCHANGED PRICES OF TAXEXEMPT MUNICIPAL BONDS ENDED UNCHANGED TO 1/4 POINT HIGHER YESTERDAY AMONG ACTIVELY TRADED ISSUES THE LUBBOCK TEXAS HEALTH FACILITIES DEVELOPMENT CORP'S 525 HOSPITAL REVENUE BONDS OF 2019 CLOSED 1/4 FIRMER AT 92 TO YIELD 583 IN THE NEWISSUE MARKET ABOUT 2 BILLION OF SECURITIES WERE BROUGHT TO THE MARKET IN QUICKPACED NEGOTIATED PRICINGS AND COMPETITIVE SALES SIZABLE OFFERINGS WERE AUCTIONED BY THE MASSACHUSETTS BAY TRANSPORTATION AUTHORITY WASHINGTON DC LOS ANGELES AND THE OHIO PUBLIC FACILITIES COMMISSION ONE OFFERING THAT WON'T BE OFFERED THIS WEEK IS THE WEST VIRGINIA SCHOOL BUILDING AUTHORITY'S 338 MILLION OF CAPITALIMPROVEMENT REVENUE BONDS AND REFUNDING BONDS THE SECURITIES WERE TO HAVE BEEN PRICED THIS WEEK BY A DONALDSON LUFKIN & JENRETTE SECURITIES CORP GROUP HOWEVER THE PRICING HAS BEEN DELAYED DUE TO LITIGATION THAT STEMMED FROM LEGAL QUESTIONS RAISED BY WEST VIRGINIA ATTORNEY GENERAL DARRELL V MCGRAW JR MR MCGRAW QUESTIONED THE CONSTITUTIONALITY OF NEGOTIATED BOND BIDS THE METHOD BY WHICH DONALDSON LUFKIN WON THE 338 MILLION BOND ISSUE WE'RE VERY CONFIDENT THAT THE ISSUE WILL BE RESOLVED FAVORABLY IN A SHORT PERIOD OF TIME SAID BENEDICT MARINO A MANAGING DIRECTOR IN DONALDSON LUFKIN'S PUBLICFINANCE DEPARTMENT IN THE PAST THREE YEARS DONALDSON LUFKIN HAS LEADMANAGED FOUR OTHER ISSUES FOR THE WEST VIRGINIA SCHOOL BUILDING AUTHORITY TOTALING 330 MILLION IN PROCEEDS ALL THROUGH NEGOTIATED BIDS ABOUT 26 BILLION OF NEW CORPORATE BONDS WERE PRICED YESTERDAY YESTERDAY'S BRISK PACE EXCEEDED MONDAY'S 17 BILLION TALLY YESTERDAY'S BORROWERS INCLUDED SEVERAL UTILITIES A REGIONAL TELEPHONE COMPANY ONE INDUSTRIAL CONCERN SOME FEDERAL AGENCIES AND SAN DIEGO COUNTY CALIF WITH A 500 MILLION TWOPART ISSUE OF TAXABLE FLOATINGRATE NOTES IN SECONDARY TRADING LONGMATURITY INVESTMENTGRADE ISSUES ENDED ABOUT FLAT WHILE SHORT AND INTERMEDIATE ISSUES WERE SLIGHTLY HIGHER JUNK BONDS ENDED ENDED FIRM WITH 1/4 POINT GAINS IN SPOTS CONSPICUOUSLY ABSENT FROM PRIMARY MARKET ACTIVITY WAS THE CANADIAN PROVINCE OF ONTARIO ONTARIO SAID IT PLANS TO SELL A MINIMUM OF US1 BILLION OF SEVENYEAR GLOBAL BONDS IN THE NEXT COUPLE OF DAYS TRADERS SPECULATED THAT THE PROVINCE MIGHT RAISE AS MUCH AS US15 BILLION IF ENOUGH INVESTOR DEMAND SURFACES GLOBAL BONDS ARE LARGE OFFERINGS OF SECURITIES SOLD SIMULTANEOUSLY IN NORTH AMERICA EUROPE AND ASIA THE PROVINCE BESET BY LARGE BUDGET DEFICITS RECENTLY PASSED A C16 BILLION US125 BILLION TAX INCREASE AND IS NOW WORKING ON METHODS OF REDUCING GOVERNMENT WORKERS' SALARIES BY ANOTHER C2 BILLION BY AUG 1 THE SPREAD OR GAP BETWEEN YIELDS OF CANADIAN YANKEE BONDS AND TREASURYS HAS WIDENED LATELY MAINLY DUE TO THE THREAT THAT CANADIAN PROVINCES WOULD ISSUE A LARGE AMOUNT OF NEW DEBT WITHIN THE NEXT TWO WEEKS YANKEE BONDS ARE DOLLARDENOMINATED SECURITIES SOLD BY FOREIGN COMPANIES OR COUNTRIES IN THE US PRICES OF ACTIVE MORTGAGE ISSUES ENDED 3/32 TO 6/32 HIGHER ALTHOUGH OFF FROM HIGHS POSTED DURING THE SESSION IN PRIMARY ACTIVITY DAIWA SECURITIES INC PRICED A 193 MILLION SEVENPART REAL ESTATE MORTGAGE INVESTMENT CONDUIT DEAL BACKED BY NEWLY ORIGINATED 30YEAR FIRST MORTGAGES ON 42 MOBILEHOME PARKS AND FIRST BOSTON CORP PRICED A 576 MILLION 13PART DEPARTMENT OF VETERANS AFFAIRS ISSUE THE BULK OF THE DAIWA DEAL WAS IN TWO 76 MILLION 75YEAR SENIOR CLASSES EACH RATED DOUBLEA BY FITCH INVESTORS SERVICE AND STANDARD & POOR'S CORP A FLOATINGRATE CLASS WAS PRICED TO FLOAT 150 PERCENTAGE POINTS ABOVE THE SIXMONTH LONDON INTERBANK OFFERED RATE THE FIXEDRATE CLASS WAS PRICED WITH A 7125 COUPON THE VA DEAL WAS THE FOURTH ISSUE OF PASSTHROUGH SECURITIES THROUGH THE VINNIE MAC PROGRAM TO CARRY A FULL FAITH AND CREDIT GOVERNMENT GUARANTEE THE ISSUE VENDEE MORTGAGE TRUST 19932 IS BACKED BY VA VENDEE LOANS THE 13 CLASSES WERE RATED TRIPLEA BY S&P AND MOODY'S INVESTORS SERVICE INC BASED ON THE GOVERNMENT GUARANTEE 9306160048 930616 OTC FOCUS MARKET IS BUOYED BY TECHNOLOGY BANK MEDICALFIELD ISSUES NASDAQ INDEX UP BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET ROSE BUOYED BY SELECTIVE BUYING IN TECHNOLOGY BANK AND MEDICALRELATED STOCKS THE NASDAQ COMPOSITE INDEX CLIMBED 093 OR 013 TO 69734 GAINERS TOPPED LOSERS 14311284 ON TOTAL VOLUME OF 2368 MILLION SHARES UP FROM MONDAY'S 2084 MILLION YESTERDAY'S POSITIVE MAY CONSUMERPRICE REPORT HAD LITTLE EFFECT ON THE MARKET WHERE PRICES HAD ALREADY CLIMBED MONDAY IN ANTICIPATION OF UPBEAT INFLATION NEWS THE GOVERNMENT REPORTED THAT CONSUMER PRICES ROSE ONLY 01 IN MAY BARGAIN HUNTING IS CITED THE MARKET HAD ONLY A NARROW ADVANCE EVEN THOUGH YOU MIGHT HAVE EXPECTED BROADER GAINS SAID PETER DAPUZZO HEAD OF OTC TRADING AT CANTOR FITZGERALD THERE IS SOME BASIC BARGAIN HUNTING IN GROWTH AND SMALL CAP STOCKS TECHNOLOGY STOCKS WERE MIXED MICROSOFT EDGED UP 1/4 TO 92 1/2 AND INTEL ROSE 5/8 TO 57 3/4 BUT APPLE COMPUTER DROPPED 2 5/8 TO 42 AND SUN MICROSYSTEMS FELL 1 TO 30 7/8 THE NASDAQ BANK INDEX LEAPT 439 OR 075 TO 59205 WILMINGTON TRUST ROSE 3/4 TO 27 1/4 NATIONAL COMMUNITY BANKS JUMPED 1 1/8 TO 53 1/2 AND COLLECTIVE BANCORP CLIMBED 3/4 TO 28 1/4 ADVANTA JUMPED 3 1/4 TO 46 1/2 SG WARBURG SECURITIES INITIATED COVERAGE OF THE STOCK WITH AN ADD RATING WARBURG SAID ADVANTA IS ONE OF THE LARGEST MASTERCARD/VISA ISSUERS AND SAID THERE IS AMPLE ROOM FOR THE HORSHAM PA COMPANY TO CONTINUE TO TAKE MARKET SHARE SNAPPLE BEVERAGE SURGED 2 1/2 TO 37 HAMBRECHT & QUIST ANALYST JEANMICHEL VALETTE INITIATED COVERAGE OF THE STOCK WITH A SPECULATIVE BUY RATING MR VALETTE CITED SUSTAINED GROWTH AHEAD OF WALL STREET EXPECTATIONS AND THE POSSIBILITY OF THE COMPANY MAKING AN ANTIDILUTIVE ACQUISITION LEONARD MARSH SNAPPLE'S PRESIDENT SAID THE COMPANY IS CONSIDERING A POSSIBLE ACQUISITION WE MIGHT ACQUIRE SOMETHING IN THE BEVERAGE BUSINESS HE SAID EVERTHING IS A POSSIBILITY AMGEN JUMPED 1 1/8 TO 36 PRUDENTIAL SECURITIES BIOTECHNOLOGY ANALYST JOSEPH EDELMAN SAID FEARS OF A DECLINE IN SALES GROWTH OF AMGEN'S FLAGSHIP PRODUCT HAVE BEEN OVERBLOWN HE SAID THE POTENTIAL FOR THE COMPANY'S PRODUCTS UNDER DEVELOPMENT HAS BEEN UNDERESTIMATED HE REITERATED HIS BUY RECOMMENDATION AND DESIGNATED THE STOCK HIS SINGLE BEST IDEA IN THE BIOTECH GROUP MR EDELMAN SAID THE LONGTERM GROWTH OF NEUPOGEN IS ENSURED AS THE DRUG MOVES BEYOND ITS CURRENT CHEMOTHERAPY USES INTO TREATMENT OF INFECTIOUS DISEASES SUCH AS AIDS AND PNEUMONIA GENSIA GAINED 3/4 TO 21 1/2 THE SAN DIEGO COMPANY SAID IT HAS COMPLETED PATIENT ENROLLMENT IN MULTICENTER PHASE III CLINICAL TRIALS IN THE US WESTERN EUROPE AND CANADA THE TRIALS ARE FOR THE DIAGNOSIS OF PATIENTS WITH CORONARY ARTERY DISEASE US HOMECARE TUMBLED 2 3/4 TO 6 1/8 THE HARTSDALE NY COMPANY SAID LOWERTHANEXPECTED REVENUE GROWTH AND A SUBSTANTIAL ADDITION TO ITS RESERVE FOR UNCOLLECTIBLE ACCOUNTS WILL CAUSE SECONDQUARTER EARNINGS TO COME IN BELOW ANALYSTS' EXPECTATIONS OF 15 CENTS OR 16 CENTS A SHARE THE PROVIDER OF HOME NURSING AND INFUSION HEALTH CARE SAID IT EXPECTS TO POST EARNINGS OF ABOUT FIVE CENTS TO SEVEN CENTS A SHARE BEFORE AN ADDITIONAL RESERVE OF 12 CENTS A SHARE RELATED TO THE COLLECTABILITY OF CERTAIN MEDICARE RECEIVABLES FROM ITS FLORIDA MARKET LAST YEAR THE COMPANY EARNED 12 CENTS A SHARE FOR THE PERIOD THE DAY'S THIRD MOST ACTIVE STOCK CRACKER BARREL OLD COUNTRY STORE TOPPLED 4 TO 28 1/2 ON 27 MILLION SHARES MORGAN STANLEY ANALYST KURT FEUERMAN DOWNGRADED THE STOCK TO A STRONG HOLD FROM BUY CITING THE STOCK'S 50 INCREASE IN VALUE SINCE HE INITIATED COVERAGE A YEAR AGO MR FEUERMAN SAID HE TRIMMED HIS EARNINGS ESTIMATES FOR THE SECOND TIME IN TWO MONTHS BECAUSE EARLY JUNE SAMESTORE SALES GROWTH IS BELOW TREND FOR THE FISCAL YEAR ENDING NEXT MONTH HE SNIPPED HIS ESTIMATE BY TWO CENTS TO 76 CENTS A SHARE DSC COMMUNICATIONS JUMPED 2 3/4 TO 46 3/4 GOLDMAN SACHS ANALYST MARY HENRY OPENED COVERAGE OF THE STOCK WITH A BUY RATING WHILE ADDING THE STOCK TO THE BROKERAGE FIRM'S US RECOMMENDED LIST TRADERS SAID THE PLANO TEXAS COMPANY MAKES TELECOMMUNICATION AND LOCAL AREA NETWORK SYSTEMS AND PRODUCTS EQUINOX SYSTEMS SLID 1 3/8 TO 8 1/4 PUNK ZIEGEL & KNOELL ANALYST FREDERICK ZIEGEL LOWERED HIS SECONDQUARTER EARNINGS ESTIMATE TO A RANGE OF 12 TO 14 CENTS A SHARE FROM HIS PREVIOUS 15CENTSASHARE FORECAST IN APRIL EQUINOX A MAKER OF COMMUNICATIONS PRODUCTS FOR MULTIUSER COMPUTER SYSTEMS WENT PUBLIC AT 11 1/2 A SHARE THROUGH UNDERWRITERS LED BY ROBINSONHUMPHREY 9306160047 930616 BUSINESS BRIEF STORAGE TECHNOLOGY CORP PRODUCTION PLANNED IN '93 OF ICEBERG STORAGE SYSTEM GREGORY TYMM CHIEF FINANCIAL OFFICER TOLD A PIPER JAFFRAY CONFERENCE IN MINNEAPOLIS THAT THE ICEBERG SYSTEM IS PRETTY MUCH ON OUR LATEST SCHEDULE IN JULY HE SAID SELECTED END USERS WILL BEGIN TESTING THE NEW SYSTEM DESPITE THE LONG DELAY IN GETTING ICEBERG TO MARKET MR TYMM SAID STORAGE TECHNOLOGY BASED IN LOUISVILLE COLO HASN'T SUFFERED A NET LOSS OF ORDERS THE PRODUCT HE SAID STILL HAS 170 CUSTOMERS AWAITING ITS RELEASE THE ICEBERG SYSTEM HAD BEEN EXPECTED TO CONTRIBUTE AS MUCH AS 50 MILLION TO 1992 REVENUE LAST MONTH STORAGE TECHNOLOGY CHIEF EXECUTIVE RYAL POPPA SAID THE COMPANY EXPECTED TO BEGIN SHIPPING ICEBERG IN THE FOURTH QUARTER ALTHOUGH THERE ARE NO GUARANTEES IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY STORAGE TECHNOLOGY ROSE 2125 OR 59 TO 38375 9306160046 930616 REVIEW & OUTLOOK EDITORIAL GOODLOOKING CLINTON MAYBE YOU HEARD A GREAT SUCKING SOUND DURING PRESIDENT CLINTON'S NEWS CONFERENCE YESTERDAY IT WAS A LOT OF THE AIR RUNNING OUT OF ROSS PEROT'S FULMINATIONS AGAINST THE NORTH AMERICAN FREE TRADE AGREEMENT THE PEROT DELIVERY IS SO GOOD THAT HE OFTEN MANAGES TO MAKE NAFTA A LAUGHINGSTOCK YESTERDAY MR CLINTON SHOWED WHAT THE ISSUE SOUNDS LIKE WHEN A PERSON TALKS ABOUT IT SERIOUSLY QUESTIONER THE NAFTA OUR AGREEMENT WITH MEXICO YOU'RE GOING TO TAKE JOBS DOWN THERE AND PLANTS DOWN THERE LEAVE THE JOBS VACANT HERE AND TAKE THE PLANTS DOWN THERE PRESIDENT CLINTON WELL THAT'S THE ARGUMENT AGAINST NAFTA BUT I DON'T BELIEVE THAT WILL HAPPEN AND I'LL TELL YOU WHY LOOK WHAT'S HAPPENED IN THE LAST FIVE YEARS THERE HAVE BEEN ANY NUMBER OF PLANTS THAT HAVE MOVED INTO MEXICO THEY CAN CONTINUE TO DO THAT NOW UNDER THE PRESENT LAW THE MAQUILADORA LINE HAS BEEN EXTENDED WELL BEYOND THE RIO GRANDE RIVER THERE ARE LOTS OF PLANTS DOWN THERE BUT JUST A FEW YEARS AGO WE HAD A 5 BILLION TRADE DEFICIT WITH MEXICO NOW WE HAVE A 6 BILLION TRADE SURPLUS LAST MONTH THEY REPLACED JAPAN AS THE SECOND BIGGEST PURCHASER OF OUR MANUFACTURING PRODUCTS THERE ARE OVER 80 MILLION MEXICANS AS THEIR INCOMES GO UP THEY WILL BUY MORE FROM US IF WE CAN WORK OUT AN AGREEMENT WITH THEM WE WILL THEN BE ABLE TO MOVE TO SIMILAR AGREEMENTS WITH COUNTRIES EVEN FARTHER FROM US BUT IN OUR REGION IN LATIN AMERICA LIKE ARGENTINA AND VENEZUELA AND OTHER COUNTRIES AND I BELIEVE THAT THAT WILL CREATE FAR MORE JOBS THAN IT WILL COST THERE WILL BE SOME CHANGES BUT I BELIEVE THAT NAFTA WILL HELP US TO CREATE JOBS MR CLINTON GOT IT EXACTLY RIGHT WE NEED NAFTA NOT FOR THE SAKE OF MEXICO BUT FOR OURSELVES THAT IT WILL ALSO BENEFIT MEXICO IS A FOREIGN POLICY BONUS AND THE IDEA OF EXTENDING THE FREE TRADE ZONE THROUGHOUT THE HEMISPHERE IS THE KIND OF VISIONARY CONCEPT THAT MAKES A PRESIDENT WELL PRESIDENTIAL IF MR CLINTON WANTS PEOPLE TO BELIEVE THAT HE'S THE MOST DECISIVE PRESIDENT IN RECENT YEARS A CLEAN WIN ON NAFTA WILL DO IT PULLING TOGETHER SUPPORT FOR NAFTA ISN'T GOING TO BE EASY BELTWAY BEAN COUNTERS SEE NAFTA AS GOING DOWN IN THE HOUSE IF A VOTE WERE HELD TODAY PRESIDENT CLINTON'S UNDERSTANDING AND ELOQUENT DEFENSE OF THE ISSUE IS CRITICAL BUT IT'S NOT ENOUGH TO WIN THE PRESIDENT IS GOING TO HAVE TO GET HIS OWN PEOPLE FULLY IN TUNE WITH HIS OWN CLEAR UNFUDGED DEFENSE OF NAFTA IN SHORT THE CLINTON ADMINISTRATION HAS TO BE SEEN SINGING THE SAME HYMNAL LAST MONTH DELEGATES AT A COUNCIL FOR THE AMERICAS MEETING IN WASHINGTON WERE IMPRESSED BY MICKEY KANTOR'S DEFENSE OF NAFTA BUT SHOCKED BY ECONOMIC ADVISER ROBERT RUBIN'S SEEMING INDIFFERENCE TO THE SUBJECT THIS MAY BE UNFAIR TO MR RUBIN BUT IT DID SHOW A LACK OF COHESION FAILURE TO PUT TOGETHER A WELLRUN CAMPAIGN IN DEFENSE OF NAFTA CEDES TOO MUCH GROUND TO THE PROTECTIONIST LOBBYISTS WHO ARE WORKING CONGRESS DAY AND NIGHT THE PRESIDENT SEEMS TO HAVE BOTH A GUT UNDERSTANDING OF THE IMPORTANCE OF NAFTA AND THE INTELLECTUAL BACKGROUND TO SHOOT DOWN ARGUMENTS AGAINST IT IF HE WERE TO TAKE MR PEROT HEAD ON AND WIN THIS THING WE VENTURE HE'D HAVE TO ANSWER FAR FEWER QUESTIONS AT PRESS CONFERENCES ABOUT HIS DECISIVENESS 9306160045 930616 MARKETING BRIEF NOTED TV MEREDITH CORP DES MOINES IOWA SIGNED A DEFINITIVE AGREEMENT TO SELL TWO TELEVISION PROPERTIES TO NEW YORKBASED GRANITE BROADCASTING CORP A MINORITYRUN OWNER OF NETWORKAFFILIATED TELEVISION STATIONS MEREDITH WILL RECEIVE 32 MILLION AND A TAX CERTIFICATE FOR WHICH IT QUALIFIED FOR POTENTIAL TAX BENEFITS BY SELLING TO A MINORITYCONTROLLED CONCERN GRANITE EXPECTS ITS REVENUE BASE TO INCREASE 50 BECAUSE OF THE ACQUISITION IT REPORTED FIRSTQUARTER REVENUE OF 86 MILLION OPRAH KNOPF A UNIT OF ADVANCE PUBLICATIONS' RANDOM HOUSE INC SAID OPRAH WINFREY'S AUTOBIOGRAPHY A MAJOR TITLE ON ITS FALL LIST HAS BEEN POSTPONED FROM ITS SEPTEMBER PUBLICATION DATE KNOPF SAID THE TALKSHOW HOST WANTS TO CONTINUE WORKING ON HER BOOK WHICH IT PLANS TO PUBLISH WHEN SHE IS READY WHO'S NEWS HOWARD C KATZ 43 WAS NAMED SENIOR VICE PRESIDENT OF PRODUCTION A NEW POST AT ESPN INC THE SPORTS CABLE NETWORK OF CAPITAL CITIES/ABC INC HE HAD BEEN PRESIDENT AND CHIEF OPERATING OFFICER AT OHIMEYER COMMUNICATIONS CO A LOS ANGELES UNIT OF ESPN WHERE HE NOW WILL BE GENERAL MANAGER CLARK HOYT WAS NAMED VICE PRESIDENTNEWS OF KNIGHTRIDDER INC MR HOYT 50 SUCCEEDS JENNIE BUCKNER 46 WHO WAS NAMED VICE PRESIDENT AND EDITOR OF THE CHARLOTTE OBSERVER A KNIGHTRIDDER NEWSPAPER MR HOYT HAS BEEN KNIGHTRIDDER'S WASHINGTON BUREAU CHIEF SINCE 1987 9306160044 930616 HEARD ON THE STREET INTERACTIVESECTOR BARGAIN'S ARE AVAILABLE IF YOU CALL NOW BY SUSAN PULLIAM STAFF REPORTER OF THE WALL STREET JOURNAL WHAT'S BIGGER THAN THE INDUSTRIAL REVOLUTION MORE IMPORTANT THAN THE URBANIZATION OF AMERICA AND MORE SWEEPING THAN THE DEVELOPMENT OF THE MICROPROCESSOR THE ANSWER IF A RECENT REPORT BY BEAR STEARNS IS TO BE BELIEVED IS THE DEVELOPMENT OF INTERACTIVE COMMUNICATIONS WHICH WILL SOON ALLOW CONSUMERS TO DO ALMOST ANYTHING SHOP ORDER FROM A SELECTION OF HUNDREDS OF MOVIES MAKE PHONE CALLS OR PAY BILLS ON THEIR TELEVISION SETS THE BEAR STEARNS ANALYSTS WHO WROTE THAT REPORT MAY HAVE GOTTEN A BIT CARRIED AWAY BUT LATELY INTERACTIVITY IS ONE OF THE HOTTEST BUZZWORDS ON WALL STREET HARDLY A WEEK GOES BY WITHOUT AT LEAST ONE MAJOR COMMUNICATIONS COMPANY JOINING UP WITH ANOTHER FOR A JOINT VENTURE IN THE INTERACTIVE COMMUNICATIONS AREA WHAT THESE BIG PLAYERS INCLUDING TELECOMMUNICATIONS TIME WARNER AMERICAN TELEPHONE & TELEGRAPH MICROSOFT GENERAL INSTRUMENT VIACOM AND A HOST OF OTHERS ARE TRYING TO DO IS POSITION THEMSELVES TO GET A PIECE OF THE INTERACTIVE COMMUNICATIONS PIE A BUSINESS THAT ANALYSTS ESTIMATE WILL CONTRIBUTE 300 BILLION TO THE GROSS NATIONAL PRODUCT DURING THE NEXT DECADE OR SO SO HOW CAN THE LITTLE GUY GET A PIECE OF THE ACTION BUYING THE STOCKS OF THE COMMUNICATIONS GIANTS THAT ARE JOCKEYING FOR POSITION MIGHT SEEM A NOBRAINER WAY OF PLAYING THE INTERACTIVITY TREND IF YOU WANT TO BE SURE YOU PLAY THE CABLE COMPANIES PHONE COMPANIES OR OTHER ESTABLISHED COMPANIES LIKE GENERAL INSTRUMENT SAID ANDREW WALLACH A PORTFOLIO MANAGER WITH NEW YORK MONEY MANAGER CUMBERLAND ASSOCIATES BUT NOBRAINERS USUALLY AREN'T CHEAP AND THAT IS THE CASE HERE ALL THE OBVIOUS NAMES HAVE BEEN PICKED OVER SAID LAWRENCE MARX A PORTFOLIO MANAGER WITH NEUBERGER & BERMAN MONEY MANAGERS SAY THAT MORE ADVENTURESOME INVESTORS HAVE AN OPPORTUNITY RIGHT NOW TO TRY AND SPOT STOCKS IN THE INTERACTIVE AREA THAT COULD BECOME TOMORROW'S GROWTH STOCKS AND SOME OF THE STOCKS OF THESE SMALLER LESSERKNOWN COMPANIES THAT ARE TRYING TO CARVE OUT A NICHE IN THE BUSINESS ARE BETTER BARGAINS THAN MANY OF THE BIGGER PLAYERS MANAGERS SAY THE KEY IS NOT OVERPAYING SAID MR WALLACH STOCKS OF INTERACTIVE COMMUNCIATIONS COMPANIES MANY OF WHICH HAVE SCANT OR NO EARNINGS AT ALL AREN'T INVESTMENTS FOR THE FAINTHEARTED YOU CAN MAKE 10 TIMES YOUR MONEY OR LOSE IT ALL SAYS MR WALLACH THE REGULATIONS TECHNOLOGY AND INDUSTRY STANDARDS THAT WILL HELP SORT OUT THE WINNERS AND LOSERS ARE STILL IN FLUX THERE WILL BE A LOT OF NAIVE INVESTORS THAT WILL LOSE MONEY ALONG THE WAY ON STOCKS THAT ARE DEAD END THE RISKS ARE HIGHEST BUT THE POTENTIAL PAYOFF GREATEST IN STOCKS OF COMPANIES THAT PROVIDE INTERACTIVE PROGRAMMING AND SOFTWARE THAT WILL ALLOW CONSUMERS TO SHOP ORDER MOVIES OR CALL HOME THROUGH THEIR TELEVISION SETS THINK THE STOCKS OF HOME SHOPPING NETWORK AND QVC TWO POPULAR SHOPATHOME TELEVISION CHANNELS ARE TOO PRICEY SO DOES NANDITA PARKER AN ANALYST WITH GERARD KLAUER MATTISON SHE RECOMMENDS THAT CLIENTS BUY THE STOCK OF A MINI VERSION OF THE POPULAR HOMESHOPPING NETWORKS CALLED VALUEVISION INTERNATIONAL MINNEAPOLIS THE CLASS A STOCK QUOTED AT 4 11/16 DOWN 1/8 IN THE OVERTHECOUNTER MARKET OFFERS A UNIQUE OPPORTUNITY TO PLAY THE ELECTRONIC HOMESHOPPING INDUSTRY FOR INVESTORS WHO CAN TOLERATE ABOVEAVERAGE LEVELS OF RISK SAYS MS PARKER THE COMPANY'S GROWTH HAS BEEN HAMPERED BECAUSE IT DOESN'T HAVE ITS OWN CHANNEL UNLIKE BIGGER COMPETITORS BUT BY LEASING ACCESS MS PARKER EXPECTS THE COMPANY TO REACH 45 MILLION SUBSCRIBERS BY YEAR END SHE PREDICTS EARNINGS WILL LEAP FROM FIVE CENTS A SHARE THIS YEAR TO 25 CENTS A SHARE NEXT YEAR WITH A GROWTH RATE LIKE THAT SHE CALLS THE STOCK REALLY CHEAP JEFF MALET PRESIDENT OF PACIFIC CENTURY ADVISERS A BANKAMERICA UNIT SAYS HE LIKES SOFTWARE TOOLWORKS A NOVATO CALIF PRODUCER AND DISTRIBUTOR OF GAME SOFTWARE THE COMPANY PRODUCES GAMES SUCH AS NINTENDO UNDER LICENSE AND MARKETS EDUCATIONAL MATERIALS SUCH AS ENCYCLOPEDIAS FOR DISPLAY ON PERSONAL COMPUTERS THE STOCK NOW AT 9 1/2 UP 3/8 HAS TAKEN A BEATING RECENTLY AFTER THE COMPANY POSTED EARNINGS OF 12 CENTS A SHARE FOR ITS FISCAL YEAR ENDED MARCH 31 WELL BELOW ANALYSTS' ESTIMATES OF AROUND 20 CENTS THAT DROP HAS ONLY MADE THE STOCK A BETTER BARGAIN MR MALET SAID WE BELIEVE IN THE LONGTERM MERITS OF THE COMPANY HE SAID BY 1994 HE ESTIMATES THE COMPANY WILL EARN 40 CENTS A SHARE HE ALSO LIKES ELECTRONIC ARTS A GAME SOFTWARE COMPANY NOW AT 27 1/2 OFF 2 1/2 YESTERDAY ALTHOUGH IT IS TRADING AT A RICHER 30 TIMES 1994 ESTIMATES THESE ARE TWO PREMIER COMPANIES IN THE MULTIMEDIA AREA HE SAID ONE OF THE HARDEST PLACES TO FIND INTERACTIVE STOCK PICKS IS AMONG COMPANIES THAT MAKE THE EQUIPMENT AND HARDWARE FOR THE NETWORK THAT WILL DELIVER THESE SERVICES INTO THE HOME MONEY MANAGERS FEAR THAT THE PRODUCTS OF THESE COMPANIES WILL QUICKLY BECOME COPIED BY OTHER COMPANIES AND PROFIT MARGINS WILL SHRINK IT'S HARD ENOUGH TO SORT OUT WINNERS ON THE SOFTWARE SIDE IT'S ALMOST IMPOSSIBLE ON THE HARDWARE SIDE SAID PUTNAM INVESTMENT MANAGEMENT'S DOUGLAS FOREMAN THOUGH THE HARDWARE PICKINGS ARE SLIM MARIO GABELLI THE WELLKNOWN MUTUALFUND MANAGER IS PART OF A GROUP THAT TOOK A BIG STAKE IN ALLEN GROUP WHICH HE SAYS DOMINATES THE MARKET FOR CELLULAR PHONE ANTENNAS THIS FASTRISING STOCK IS AT 42 3/4 UP 1/2 YESTERDAY AND MORE THAN DOUBLE THE PAST YEAR'S LOW A GROUP INCLUDING MR GABELLI RECENTLY REDUCED ITS STAKE TO 1323 FROM 1424 BUT STILL HOLDS MORE THAN 14 MILLION ALLEN SHARES THERE ALSO ISN'T ANY ABUNDANCE OF UNDISCOVERED BARGAINS AMONG COMPANIES SUCH AS TELEPHONE AND CABLE BUSINESSES THAT WILL PROVIDE HOMES WITH THE PIPELINE TO DELIVER THE INTERACTIVE SERVICES ONE OUTOFFAVOR STOCK GAINING POPULARITY AMONG A NUMBER OF SMART MONEY MANGERS IS ROGERS COMMUNICATIONS A CANADIAN OPERATION THAT GIVES INVESTORS A SAMPLING OF CABLE CELLULAR AND TELEPHONE OPERATIONS IF YOU BUY ROGERS YOU ARE PARTICIPATING IN EVERY PART OF THE INDUSTRY SAID STEPHEN ARONOFF A PORTFOLIO MANAGER WITH SCUDDER STEVENS & CLARK THE STOCK HAS GOTTEN A COLD SHOULDER FROM SOME MANAGERS FOR SOME TIME BECAUSE IT WAS DELISTED IN THE US SEVERAL YEARS AGO A PERIOD WHEN THE COMPANY'S DEBT SOARED BUT MR ARONOFF SAYS THE COMPANY WHOSE VOTING B SHARES TRADE IN TORONTO AT 1850 CANADIAN DOLLARS US1446 UP 125 CANADIAN CENTS COULD HIT C30 IT'S A JEWEL OF A FRANCHISE HE SAYS MORRIS MARK A MONEY MANAGER WITH 600 MILLION UNDER MANAGEMENT MUCH OF WHICH IS INVESTED IN COMMUNICATIONS COMPANIES SAYS ASSOCIATED COMMUNICATIONS IS A BACKDOOR WAY OF MAKING A CABLE BET SINCE ASSOCIATED OWNS 18 MILLION SHARES OF TELECOMMUNICATIONS ASSOCIATED'S ASSETS ALONE ARE WORTH 16 A SHARE HE SAYS AND FOR EACH SHARE PURCHASED IN ASSOCIATED INVESTORS EFFECTIVELY GET 04 SHARE OF TELECOMMUNICATIONS WHICH CLOSED ON THE NASDAQ OVERTHECOUNTER MARKET AT 22 3/4 ADD TO THAT ASSOCIATED'S CELLULAR FRANCHISE IN MEXICO VALUED AT 3 A SHARE AND A SMALLER STAKE IN LIBERTY MEDIA AND THE SHARES ARE A STEAL AT 18 HE SAYS 9306160043 930616 MEMO ON TIMBER IN SPOTTED OWL REGION MAY HURT CLINTON'S BID FOR COMPROMISE BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION IS FINDING THERE'S LESS TIMBER AVAILABLE FOR HARVEST IN THE SPOTTED OWL REGION THAN HAD BEEN BELIEVED A FINDING THAT COULD COMPLICATE ITS SEARCH FOR A COMPROMISE IN THE LONGRUNNING DISPUTE OVER PACIFIC NORTHWEST FORESTS THE REASSESSMENT DISCLOSED IN AN INTERNAL ADMINISTRATION MEMO SUGGESTS THAT THE WHITE HOUSE IS LIKELY TO SUPPORT LOWER HARVEST LEVELS THAN INDUSTRY GROUPS ARE DEMANDING AT THE SAME TIME IT COULD REDUCE THE CHANCE THAT THE ADMINISTRATION WILL FAVOR SETTING ASIDE RESERVES THAT ARE OFFLIMITS TO CUTTING A MAJOR GOAL OF ENVIRONMENTAL GROUPS THE REPORT WE GOT INDICATES THAT THE FOREST SERVICE HAS BEEN OVERESTIMATING HARVEST LEVELS SAID MARLA ROMASH A SPOKESWOMAN FOR VICE PRESIDENT AL GORE AND THE WHITE HOUSE ENVIRONMENTAL POLICY OFFICE WE'RE TAKING STEPS IMMEDIATELY TO INVESTIGATE DISCREPANCIES ON A FORESTBYFOREST BASIS THE ANALYSIS UNDERSCORES THE DIFFICULTY THE WHITE HOUSE FACES IN FASHIONING A SPOTTED OWL PLAN THAT WILL MEET PRESIDENT CLINTON'S PLEDGE TO BALANCE ECONOMIC AND ENVIRONMENTAL INTERESTS AND BREAK THE LOGJAM OVER TIMBER POLICY THE NEW PLAN PROMISED AT A FOREST CONFERENCE IN PORTLAND ORE LAST APRIL PROBABLY WILL BE UNVEILED NEXT MONTH JAMES LYONS ASSISTANT AGRICULTURE SECRETARY FOR NATURAL RESOURCES AND ENVIRONMENT SAID IT MAKES A DIFFICULT SITUATION WORSE THE STARTING POINT IS CONSIDERABLY LOWER THAN WE THOUGHT IT WAS THE FOREST SERVICE IS AN ARM OF THE AGRICULTURE DEPARTMENT SINCE THE INTERIOR DEPARTMENT DECLARED THE OWL A THREATENED SPECIES IN 1990 COURTS HAVE BEEN PUTTING MILLIONS OF ACRES OFFLIMITS TO LOGGING IN THE NORTHWEST THE RESULT HAS BEEN STAGGERING UNEMPLOYMENT IN SOME AREAS AND INTENSE BITTERNESS BETWEEN CONSERVATIONISTS AND THE TIMBER INDUSTRY AND ITS WORKERS THE ADMINISTRATION'S MEMO IS BASED ON AN ANALYSIS CONDUCTED BY ITS SCIENTIFIC TEAM ONE OF SEVERAL WORKING GROUPS ON THE ISSUE FOREST SERVICE ESTIMATES HAVE BEEN CRITICIZED BEFORE BY ENVIRONMENTAL GROUPS AND OTHERS THE MEMO SAYS THAT A 1991 REPORT TO CONGRESS BY A PANEL OF SCIENTISTS FOUND THAT SUSTAINABLE HARVEST LEVELS IN THE PACIFIC NORTHWEST REGION WERE ON AVERAGE 15 LOWER THAN FOREST SERVICE ESTIMATES NOW THE MEMO SAYS THE DISCREPANCY HAS GROWN CITING FORESTS WHERE THE AMOUNT OF HARVESTABLE TIMBER IS 20 TO 40 BELOW FOREST SERVICE ESTIMATES REGIONWIDE THE REDUCTION IS CLOSER TO 33 RATHER THAN 15 IT SAYS THIS IS TROUBLING SAID MICHAEL MATZ WHO WORKS ON PUBLIC LANDS ISSUES FOR THE SIERRA CLUB AN ENVIRONMENTAL GROUP IT MEANS THE ADMINISTRATION MAY TRY TO ADOPT AN APPROACH THAT DOESN'T ALLOW FOR A NOHARVEST RESERVE AND THAT DOES OFFER MORE TIMBER FOR SALE THAN THE ECOSYSTEM CAN HANDLE MARK REY A VICE PRESIDENT AT THE AMERICAN FOREST AND PAPER ASSOCIATION QUESTIONED THE VALIDITY OF THE NEW ANALYSIS I'M SKEPTICAL OF A DESKTOP ANALYSIS PERFORMED IN 50 DAYS HAVING SIGNIFICANTLY MORE CREDIBILITY THAN FIELD ANALYSES THAT TOOK THE BETTER PART OF FIVE YEARS TO DO HE SAID THE MEMO CONTENDS THAT SEVERAL FACTORS EXPLAIN THE OVERESTIMATES BY THE FOREST SERVICE IT SAYS THAT THE AGENCY ASSUMED THAT SOME ROADLESS AREAS WOULD BE SUBJECT TO CUTTING EVEN THOUGH THOSE AREAS WERE WITHDRAWN FROM PRODUCTION THE AGENCY ALSO INCORRECTLY INCLUDED AREAS THAT LIE BETWEEN NOHARVEST BUFFER ZONES AND COULDN'T BE CUT FOR LOGISTICAL REASONS IT SAYS THE MEMO CITES OTHER TECHNICAL EXPLANATIONS INCLUDING AN INACCURATE COUNTING OF FORESTS THAT ARE ONLY PARTLY IN THE SPOTTED OWL REGION 9306160042 930616 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL A HALFWAY HOUSE FOR TAX INCREASES ON THE AFFLUENT IS ON THE DRAWING BOARD THE SENATE FINANCE COMMITTEE'S TAX BILL IS EXPECTED TO PHASE IN ONLY HALF THE PROPOSED INCREASES IN 1993 DELAYING THE FULL IMPACT UNTIL 1994 THE HOUSE BILL WOULD ADD RATES OF 36 AND 396 OVER THE PRESENT 31 TOP BRACKET AS OF LAST JAN 1 THE RETROACTIVITY HAS SPARKED CONCERNS ABOUT FAIRNESS AND THE CHANCE THAT UNDERWITHHOLDING WOULD HAVE MANY FILERS SCRAMBLING TO PAY BIG TAX BILLS NEXT APRIL NOW THE SENATE PANEL IS EXPECTED TO SUBSTITUTE NEW TOP BRACKETS OF 335 AND 353 FOR THE FULL YEAR 1993 THE EFFECT OF THESE SOCALLED BLENDED RATES WOULD BE THE SAME AS APPLYING A 31 TOP RATE THROUGH JUNE 30 AND THE NEW HOUSE RATES THEREAFTER TAX WRITERS DON'T WANT TO RAISE RATES AS OF JULY 1 BECAUSE IT WOULD COMPLICATE RETURNS A JULY 1 EFFECTIVE DATE ALSO COULD PROVOKE A BINGE OF EFFORTS IN THE NEXT TWO WEEKS TO ACCELERATE INTO JUNE INCOME THAT OTHERWISE WOULD BE TAKEN LATER IN THE YEAR STILL BLENDED RATES MAY FACE OPPOSITION IN THE SENATE AND IN THE HOUSE WEALTHY TAXPAYERS WERE WARNED LAST YEAR OF LIKELY TAX INCREASES IN TIME TO ACCELERATE SOME 1993 INCOME INTO 1992 HERE ARE THE AVERAGES FOR ITEMIZED DEDUCTIONS ON 1991 PERSONAL RETURNS THEY ARE UNOFFICIAL AND NO GUARANTEE OF IRS ACCEPTANCE BUT THEY MAY BE USEFUL FOR COMPARISONS RESEARCH INSTITUTE OF AMERICA NEW YORK FIGURED THEM FROM PRELIMINARY IRS DATA ON TOTAL DEDUCTIONS FOR EACH TYPE OF DEDUCTION IN EACH INCOME GROUP DIVIDED BY THE NUMBER OF ACTUAL CLAIMS ITEMIZED DEDUCTIONS WERE CLAIMED ON 282 OF ALL 1991 RETURNS THE 1991 AVERAGES BY ADJUSTEDGROSSINCOME GROUP FOR MEDICAL TAX CHARITABLEGIFT AND INTEREST DEDUCTIONS FOLLOW REMEMBER 1991 PERSONAL INCOMETAX PAYMENTS SLUMPED IN THAT RECESSION YEAR IRS COMPARISONS OF PRELIMINARY DATA FOR 1991 AND 1990 SHOW A DROP OF 32 BILLION OR 07 TO 4482 BILLION THE FIRST DROP SINCE 1983 THE 12 INCREASE IN ADJUSTED GROSS INCOME TO 35 TRILLION WAS OUTPACED BY RISING DEDUCTIONS AND PERSONAL EXEMPTIONS AND BY THE 42 INFLATION INFLATION INDEXING OF TAX BRACKETS AND OTHER FACTORS HELPED SHRINK AVERAGE TAX RATES FOR ALL AGI LEVELS BELOW 200000 OVERALL THE AVERAGE TAX RATE FELL TO 129 FROM 132 SOME CHANGES WERE DRAMATIC UNEMPLOYMENT PAY ROSE 50 TO 233 BILLION TAXABLE INCOME FROM INDIVIDUAL RETIREMENT ACCOUNTS CLIMBED 176 AND FROM PENSIONS AND ANNUITIES BY 112 NET CAPITAL GAINS SLID 122 TO 965 BILLION ITEMIZED DEDUCTIONS ROSE 14 DESPITE THE ELIMINATION OF DEDUCTIONS OF PERSONAL INTEREST THE NEW LIMIT ON CERTAIN ITEMS FOR AFFLUENT FILERS COST THEM 106 BILLION IN DEDUCTIONS GAMBLINGLOSS DEDUCTIONS STATED SEPARATELY FOR THE FIRST TIME EXCEEDED 2 BILLION PAYMENTS OF THE ALTERNATIVE MINIMUM TAX JUMPED 628 TO 1 BILLION THE IRS AUDITED 78385 CORPORATE RETURNS IN 1992 EQUAL TO 3 OF THOSE FILED THAT WAS A SHARP JUMP FROM THE 24 AUDIT RATE IN 1991 WHEN RETURNS OF 63422 CORPORATIONS OF ALL SIZES WERE SCRUTINIZED LOWINCOME WORKERS TOOK ADVANTAGE OF FAR MORE EARNEDINCOME CREDITS IN 1991 PRELIMINARY IRS DATA SHOW TOTAL CREDITS JUMPED 46 TO 111 BILLION THE NUMBER OF RETURNS CLAIMING THE REFUNDABLE PART OF THE CREDIT GREW 825 TO 104 MILLION THE IRS SEEKS IDEAS ON HOW BEST TO LINK TAXPAYERS' COMPUTERS WITH ITS OWN FOR RETURN FILING AND OTHER COMMUNICATIONS PERHAPS THROUGH COMMERCIAL NETWORKS IT IS LOOKING FOR COMPANIES INTERESTED IN FORMING A CONSORTIUM TO EXPLORE THE POSSIBILITIES AND NOW THIS IOWA SOLICITS PAID ADVERTISING FOR ITS TAXRETURN BOOKLET IF GOV BRANSTAD'S PLAN WORKS IOWANS FOLLOWING INSTRUCTIONS FOR STATE RETURNS NEXT YEAR WILL PAUSE TO PERUSE ADS HAWKING THE SERVICES OF ACCOUNTANTS BANKS AND OTHER CONCERNS EAGER TO TAP A NICHE MARKET OF 13 MILLION INDIVIDUAL TAXPAYERS LUCKY FILERS MAY FIND ADS IN REFUND ENVELOPES BY SELLING SPACE IN A VARIETY OF STATE PUBLICATIONS AND HANDOUTS THE GOVERNOR HOPES TO RAISE 500000 OR MORE TO DEFRAY COSTS THE STATE WILL SCREEN COPY FOR PROPRIETY AND DISAVOW ANY ENDORSEMENT OF THE ADVERTISERS TO THE RIGHT ADVERTISERS TAX BOOKLETS OFFER GUARANTEED CIRCULATION AND HIGH VISIBILITY SAYS KENT ZIMMERMAN OF ZIMMERMAN LAURENT & RICHARDSON A DES MOINES AD AGENCY THE TARGETED AUDIENCE IS A REALLY EFFICIENT BUY AT 38000 A PAGE SAYS PETER FLYNN SR OF DES MOINES AGENCY FLYNN/WRIGHT READERSHIP OF THE RETURN BOOKLET IS HIGH HE NOTES AND ADS WILL BENEFIT FROM THE NOVELTY IN THE FIRST YEARS ADVERTISERS WILL BENEFIT FROM ASSOCIATION WITH OFFICIAL STATE PUBLICATIONS HE ADDS DESPITE STATE DISCLAIMERS ACCEPTANCE OF ADS IN AN OFFICIAL PUBLICATION SMACKS OF ENDORSEMENT FLYNN SAYS BRIEFS MONTANA VOTERS DEFEATED OVERWHELMINGLY GOV RACICOT'S PROPOSAL TO INSTITUTE A SALES TAX AT 4 GETTING TOUGH THE IRS SAYS IT WILL TELL CREDIT BUREAUS ABOUT VENDORS AND FORMER IRS EMPLOYEES WHO DON'T PAY NONTAX DEBTS TO THE IRS 9306160041 930616 TECHNOLOGY BRIEF U S WEST INC SCIENTIFICATLANTA AT&T DSC ARE CHOSEN SUPPLIERS U S WEST INC'S TELEPHONE UNIT SAID IT CHOSE SCIENTIFICATLANTA INC AMERICAN TELEPHONE & TELEGRAPH CO AND DSC COMMUNICATIONS CORP TO SUPPLY EQUIPMENT THAT WILL BE USED TO BEGIN BUILDING A VOICE DATA AND VIDEO NETWORK IN ITS 14STATE TERRITORY BOTH DSC AND AT&T WILL SUPPLY TRANSMISSION EQUIPMENT WHILE SCIENTIFICATLANTA WILL PROVIDE VIDEO EQUIPMENT THE ENGLEWOOD COLO COMPANY SAID THAT AGREEMENTS ARE NOW BEING NEGOTIATED AND THAT THE EQUIPMENT FROM THE THREE COMPANIES WILL BE TESTED AT U S WEST'S LABORATORY AND IN THE FIELD CONSTRUCTION IS SCHEDULED TO BEGIN LATER THIS YEAR IN OMAHA NEB BUT THE PHONE COMPANY FIRST MUST OBTAIN APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION THE COMPANY WANTS TO BEGIN TESTMARKETING SERVICES EARLY NEXT YEAR 9306160040 930616 BUSINESS BRIEF SPRINT CORP FIRM AND CONSORTIUM FORM ALLIANCE TO DEVELOP SERVICES SPRINT CORP AND MICROELECTRONICS & COMPUTER TECHNOLOGY CORP AN INFORMATION TECHNOLOGIES RESEARCH CONSORTIUM FORMED AN ALLIANCE TO DEVELOP SERVICES FOR BUSINESSES THAT WILL LET THEM MORE EASILY COMMUNICATE WITH ONE ANOTHER VIA COMPUTERS THE ALLIANCE LINKS MICROELECTRONICS & COMPUTER TECHNOLOGY'S ENTERPRISE INTEGRATION NETWORK AND SPRINT'S LONGDISTANCE DATA TRANSMISSION SERVICES IT LETS COMPANIES DO BUSINESS ELECTRONICALLY WITH SUPPLIERS AND PARTNERS THROUGH INTERNET WHICH CONNECTS MORE THAN 11000 COMPUTER NETWORKS AROUND THE GLOBE UNDER THE ARRANGEMENT SPRINT WILL MARKET MCC'S EINET SERVICES AND MCC WILL MARKET SPRINT'S LONGDISTANCE DATA SERVICES TO CUSTOMERS WHO BUY EINET SERVICES JOE D SIMS MCC VICE PRESIDENT FOR MARKETING AND BUSINESS DEVELOPMENT SAID THE ARRANGEMENT WITH SPRINT IS NOT EXCLUSIVE AND THAT MCC COULD STRIKE SIMILAR AGREEMENTS WITH OTHER TELEPHONE COMPANIES 9306160039 930616 MARKETING & MEDIA CONAGRA TO REVAMP FROZENFOODS UNIT IN BID TO STEM LOSSES IN PRICING WAR BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS CONAGRA INC ADOPTING NEW TACTICS TO CUT ITS LOSSES IN THE ONGOING SUPERMARKET FROZENFOOD WARS SAID IT WILL REFORMULATE PRODUCTS DROP OTHERS AND REFUSE TO ENGAGE IN WHAT HAS BECOME THE DEAL OF THE DAY ALREADY THE COMPANY IS RUNNING CONSUMER TASTE TESTS ON ALL ITS FROZEN PRODUCTS INCLUDING ITS PREMIER HEALTHY CHOICE LINE IN AN EFFORT TO WOO CONSUMERS WITH TASTE RATHER THAN PRICE ONE EARLY CASUALTY ULTRA SLIMFAST FROZEN MEALS WHICH CONAGRA MAKES UNDER LICENSE FROM SLIMFAST FOODS CO NEW YORK A UNIT OF THOMPSON MEDICAL INC CONAGRA'S CHAIRMAN SAID IN AN INTERVIEW PHILIP B FLETCHER CHAIRMAN AND CHIEF EXECUTIVE OFFICER ALSO SAID CONAGRA'S LINE OF CHILDREN'S FROZEN MEALS KID CUISINE IS UNDERGOING SCRUTINY FOR PROBABLE REFORMULATION WE'RE TAKING APART ALL OUR FROZEN PRODUCTS HE SAID ALLUDING TO THE COMPANY'S EFFORTS TO IMPROVE ITS CHANCES ON WHAT HE CHARACTERIZED AS AN ABSOLUTE BATTLEGROUND IN THE FROZEN FOODS SECTOR CONAGRA WHICH SELLS ABOUT 1 BILLION OF PROCESSED FROZEN FOODS ANNUALLY HAS BEEN SLUGGING IT OUT FOR TWO YEARS WITH SUCH OTHER CONCERNS AS CAMPBELL SOUP CO THE STOUFFER FOODS UNIT OF NESTLE SA AND THE KRAFT GENERAL FOODS UNIT OF PHILIP MORRIS COS BUT THE NEW TACTIC COULD BACKFIRE MANY CONSUMERS NOW EXPECT DISCOUNTS IN FROZEN DINNERS AND ENTREES MOREOVER THE COMPETITION MAY BE SPURRED TO EVEN MORE DISCOUNTING IN REACTION TO CONAGRA'S REPOSITIONING STRATEGY CONAGRA MAKES SUCH FROZEN BRANDS AS BANQUET HEALTHY CHOICE LA CHOY CHUN KING PATIO AND MORTON THE COMPANY ALSO SAID IT WILL TAKE 131 MILLION IN AFTERTAX CHARGES AGAINST FISCAL 1993 EARNINGS EQUAL TO 56 CENTS A SHARE TO ADOPT MANDATED ACCOUNTING CHANGES AS A RESULT PREVIOUSLY REPORTED QUARTERLY FIGURES WILL BE RESTATED EARLIER CONAGRA HAD SAID IT EXPECTS TO REPORT NET OF 162 A SHARE FOR THE YEAR WHICH ENDED MAY 30 MR FLETCHER SAID OMAHABASED CONAGRA EXPECTS TO ACHIEVE RECORD EARNINGS IN THE CURRENT FISCAL YEAR DESPITE A FLAT FIRST QUARTER HE DECLINED TO MAKE A MORE SPECIFIC PROJECTION BUT INDICATED EARNINGS WILL BE UP SOLIDLY FROM THE LATEST YEAR'S RESULTS EXCLUSIVE OF THE CHARGES REVIEWING THE COMPANY'S SEGMENTS HE SAID FROZEN FOODS' EARNINGS SHOULD RISE SIGNIFICANTLY IN THE CURRENT YEAR AND THAT OTHER PREPARED FOODS ALSO SHOULD DO WELL THE COMPANY EXPECTS IMPROVED RESULTS FROM ITS FRESH RED MEAT UNIT HARD HIT BY HIGH RAW MATERIAL COSTS LAST YEAR POULTRY PRODUCTS EARNINGS SUBPAR LAST YEAR ALSO ARE EXPECTED TO IMPROVE SUBSTANTIALLY IN THE CURRENT FISCAL YEAR MR FLETCHER SAID THAT BUSINESS HADN'T BEEN MANAGED AS CRISPLY AS IT SHOULD HAVE BEEN BROADLY BASED IMPROVEMENT IS PLANNED IN FISCAL 1994 FOR CONAGRA'S TRADING AND PROCESSING SEGMENT WHERE OPERATING RESULTS WERE DOWN SIGNIFICANTLY IN THE YEAR JUST ENDED LOOKING ABROAD MR FLETCHER SAID CONAGRA HOPES TO LICENSE SOME HEALTHY CHOICE ITEMS FOR PRODUCTION IN EUROPE AS PART OF AN OVERSEAS EXPANSION EFFORT HE SAID THE COMPANY HOPES TO ESTABLISH A LARGER INTERNATIONAL PRESENCE THROUGH JOINT VENTURES THAT WOULD TAKE BIGGER BITES OF BUSINESSES THAN IN THE PAST I PLAN TO SPEND MUCH MORE TIME DEVELOPING PARTNERSHIPS AROUND THE GLOBE HE SAID CONAGRA SHARES CLOSED YESTERDAY AT 2550 UNCHANGED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9306160038 930616 BUSINESS BRIEF TOLL BROTHERS INC BUILDER SEES HIGHER COSTS DELAYS HURTING 1993 RESULTS TOLL BROTHERS INC SAID 1993 RESULTS WILL BE HURT BY HIGHER COSTS AND UNANTICIPATED BUSINESS DELAYS BECAUSE OF BAD WEATHER TOLL BROTHERS IS A HUNTINGDON VALLEY PA BUILDER OF LUXURY HOMES IN THE NORTHEAST AND MIDATLANTIC REGIONS THE COMPANY DIDN'T SPECIFY TO WHAT EXTENT RESULTS WOULD BE AFFECTED DESPITE THE HIGHER COSTS DELAYS AND AN EXTRAORDINARY CHARGE OF TWO CENTS A SHARE THE COMPANY SAID IT EXPECTS EARNINGS FOR THE FISCAL YEAR ENDING OCT 31 TO SIGNIFICANTLY EXCEED 1992 RESULTS FOR FISCAL 1992 TOLL EARNED 165 MILLION OR 50 CENTS A SHARE INCLUDING A CHARGE OF 816000 OR TWO CENTS A SHARE FOR REDEMPTION OF DEBT THE COMPANY SAID DELAYS IN PRODUCTION AT EXISTING COMMUNITIES AND STARTUP OF NEW COMMUNITIES WERE CAUSED BY BAD WEATHER IN THE FISCAL FIRST HALF AS WELL AS DIFFICULTIES IN RECEIVING CERTAIN APPROVALS IN NEW COMMUNITIES INCREASED COSTS REFLECTED HIGHER MATERIAL COSTS AND PROJECT OVERHEADS RELATED TO THE DELAYS TOLL SAID 9306160037 930616 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 3/16 HIGH 3 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 313 30 TO 59 DAYS 314 60 TO 119 DAYS 321 120 TO 149 DAYS 326 150 TO 179 DAYS 323 180 TO 229 DAYS 338 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 318 30 DAYS 320 60 DAYS 324 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 268 TWO MONTHS 273 THREE MONTHS 289 SIX MONTHS 310 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 315 ONE MONTH 320 THREE MONTHS 335 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 7/16 3 5/16 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 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY JUNE 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 708 60 DAYS 716 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 9306160036 930616 MARKETING BRIEF HOLLINGER INC ARGUS SUBSIDIARY TO REDUCE STAKE IN TORONTO PUBLISHER HOLLINGER INC TORONTO SAID THAT A HOLDING COMPANY OWNED BY ITS CONTROLLING SHAREHOLDER AND CHAIRMAN CONRAD BLACK PLANS TO REDUCE ITS STAKE IN THE NEWSPAPER PUBLISHING COMPANY A SUBSIDIARY OF ARGUS CORP A CLOSELY HELD HOLDING COMPANY THROUGH WHICH MR BLACK CONTROLS HOLLINGER PLANS TO SELL UP TO 25 MILLION COMMON SHARES OF HOLLINGER TO THE PUBLIC THROUGH INVESTMENT DEALER BBN JAMES CAPEL INC NO PRICE WAS DISCLOSED AND THE TRANSACTION IS SUBJECT TO ARGUS'S SATISFACTION WITH THE PRICE OBTAINABLE THE SALE IS EXPECTED TO TAKE PLACE JUNE 22 AT LAST REPORT ARGUS HAD A 475 STAKE IN HOLLINGER WHICH HAS 549 MILLION SHARES OUTSTANDING ARGUS SAID PROCEEDS FROM THE SALE WILL BE USED TO REDUCE DEBT IN TRADING ON THE TORONTO STOCK EXCHANGE YESTERDAY HOLLINGER CLOSED AT 13125 CANADIAN DOLLARS US1024 A SHARE UP 125 CANADIAN CENTS OFFICIALS OF HOLLINGER COULDN'T BE REACHED FOR FURTHER COMMENT 9306160035 930616 LEISURE & ARTS A LIFE OF PERFECT CRIME' BY AMY GAMERMAN NEW YORK CATHERINE RUSSELL STAR OF THE OFFBROADWAY COMEDY THRILLER PERFECT CRIME HASN'T HAD A DAY OFF IN MORE THAN SIX YEARS SICKNESS BAD WEATHER AND CAR ACCIDENTS HAVE NEVER CAUSED HER TO MISS A CURTAIN NO EVER SINCE THIS 37YEAROLD ACTRESS SNAGGED THE PART OF MARGARET THORNE BRENT A NASTY PSYCHIATRIST WITH A TASTE FOR MONEY SEX AND POSSIBLY MURDER THE TWO HAVEN'T SPENT MORE THAN A DAY APART NOW MS RUSSELL HAS MADE HISTORY SHE'S BROKEN THE RECORD FOR THE MOST CONSECUTIVE PERFORMANCES IN A DRAMA IN THE HISTORY OF NEW YORK THEATER HAVING SHOWN UP FOR ALL BUT ONE OF PERFECT CRIME'S 2518 SHOWS A RECORD THAT MAKES PREVIOUS TITLEHOLDER MARIAN SELDES WHO LOGGED A TOTAL 1809 BROADWAY PERFORMANCES IN DEATHTRAP LOOK LIKE A LIGHTWEIGHT WHAT DO PEOPLE DO ON A SATURDAY NIGHT ASKED THE LIVELY MS RUSSELL WHOSE PETITE 5FOOT2 95POUND FRAME FAIRLY RADIATES ENERGY THEY GO OUT TO DINNER GO TO A MOVIE I'VE SORT OF FORGOTTEN THAT'S BECAUSE HER MEMORY BANK IS CRAMMED WITH DIALOGUE LIKE IS IT ME OR ARE YOU JUST NATURALLY REPULSED BY AGGRESSIVE WOMEN AND WHY DID YOU CARVE THE A IN MRS JOHANESTON'S FOREHEAD THANKS IN LARGE PART TO MS RUSSELL'S SKILLED DELIVERY THOSE LINES AND LOTS MORE LIKE THEM HAVE MADE PERFECT CRIME THE THIRDLONGESTRUNNING NONMUSICAL PLAY EVER ON OR OFF BROADWAY BEHIND LIFE WITH FATHER AND TOBACCO ROAD THE PLAY WHICH HAS ATTRACTED A DEVOTED FOLLOWING OF MYSTERY BUFFS IS SET IN A WOODPANELED MANSE STRAIGHT OUT OF AGATHA CHRISTIE IT OPENS ON A STORMY NIGHT WITH THE MURDER OF MARGARET'S BRITISH MILLIONAIRE HUSBAND AT LEAST IT LOOKS LIKE HE'S BEEN MURDERED MS RUSSELL IS ON STAGE ALMOST EVERY ONE OF THE PLAY'S 110 MINUTES SHE'S FOLLOWED PERFECT CRIME THROUGH MASSIVE REWRITES SOMETIMES MEMORIZING PAGES OF NEW DIALOGUE FOR THE SECOND ACT DURING INTERMISSION NO PRIMA DONNA SHE'S NOT ABOVE MAKING OCCASIONAL CAMEO APPEARANCES IN THE THEATER LOBBY PUNCHING TICKETS SMALL WONDER PLAYWRIGHT WARREN MANZI WHO IS ALSO MS RUSSELL'S DIRECTOR HER COSTAR AND HER LIVEIN SQUEEZE OF THE PAST SEVERAL YEARS IS HER BIGGEST FAN THE SPARK SHE BROUGHT TO THE ROLE SHE STILL HAS SAID MR MANZI WHO IS NOW PLAYING OPPOSITE MS RUSSELL IN THE ROLE OF THE DETECTIVE WHO GETS THE HOTS FOR MARGARET SHE'S GOTTEN BETTER EIGHT TIMES A WEEK FIVE TIMES ON WEEKENDS MS RUSSELL GETS SLAPPED GRABBED AND HURLED TO THE GROUND EIGHT TIMES A WEEK SHE WALTZES WITH A BEWIGGED TRANSVESTITE ENERGETICALLY SEDUCES THE GUMSHOE AND SHEDS REAL TEARS IN THE PLAY'S CLIMACTIC SCENE SHE'S PLAYED TO AUDIENCES OF FOUR PEOPLE AUDIENCES WHO STUBBORNLY REFUSED TO LAUGH AND AUDIENCES OF 13YEAROLD BOYS WHO HOOTED OUT RUDE COMMENTS I'VE BEEN OFFERED SOME OTHER THINGS OFFBROADWAY BUT I REALLY LIKE DOING THIS PLAY SHE SAID IT'S VERY CATHARTIC I GET TO YELL I GET TO SCREAM I GET TO CRY SHE ATTRIBUTES HER STAMINA TO THE 100 MARINE PUSHUPS SHE DOES EVERY DAY PLUS I DRINK A LOT OF COFFEE AND EAT SNICKERS BARS THAT REGIMEN HAS HELPED HER OUTLAST SEVEN DIFFERENT LEADING MEN AND ALL HER ORIGINAL COSTUMES IT MAY BE TIME FOR A FRESH SUPPLY AT A RECENT MATINEE HER SEXY SEQUINED COCKTAIL DRESS SPLIT AT THE SEAM REVEALING MORE OF MARGARET THAN THE PLAYWRIGHT EVER INTENDED MS RUSSELL HAS UNDERGONE SOME WEAR AND TEAR HERSELF IN THE SERVICE OF HER CRAFT WHEN THE NEW YORK TIMES SENT SOMEONE TO REVIEW THE PLAY THE ACTOR PLAYING THE CROSSDRESSING PATIENT THREW HER TO THE GROUND A LITTLE HARDER THAN THE STAGE DIRECTIONS CALLED FOR HE WAS ACTING UP A STORM THIS GUY SAID MS RUSSELL WHEN HE THREW ME DOWN I LITERALLY BLACKED OUT YOU KNOW HOW THEY SAY YOU SEE STARS I PUT MY HAND UP TO MY HEAD AND IT WAS COVERED WITH BLOOD BUT THE SHOW MUST GO ON AND IT DID I THOUGHT THE HELL WITH IT THERE'S NO DAMN WAY I'M GOING TO STOP THE PLAY SO WE KEPT GOING SHE SAID IT PROBABLY STOPPED ME FROM OVERACTING EVEN A CAR ACCIDENT THAT LEFT HER COVERED IN BRUISES DIDN'T STOP HER FROM SHOWING UP AT THE STAGE DOOR THE ONLY TIME MS RUSSELL MISSED A PERFORMANCE A SATURDAY MATINEE ON APRIL 30 1988 IT WAS TO BE MAID OF HONOR IN HER SISTER'S WEDDING BUT SHE WAS BACK ON STAGE THAT NIGHT MY UNDERSTUDY GOT SICK SHE SHRUGGED MS RUSSELL HERSELF DOES NOT GET SICK I'M A CHRISTIAN SCIENTIST SHE EXPLAINED WE'RE TAUGHT TO IGNORE IT MS RUSSELL'S STOIC DEPENDABILITY GROWS EVEN MORE IMPRESSIVE WHEN YOU DISCOVER THAT PERFECT CRIME IS JUST ONE OF HER MANY JOBS SHE ALSO TEACHES CLASSES IN ENGLISH AT CITY COLLEGE AND IN THEATER AT NEW YORK UNIVERSITY TO TOP IT OFF SHE RUNS A DRAMA PROGRAM FOR YOUNG OFFENDERS AT THE CITY PRISON AT RIKERS ISLAND LET OTHER ACTORS UNWIND AT ORSO MS RUSSELL GOES HOME AND GRADES PAPERS OR DOES RESEARCH TOWARD HER PHD IN EDUCATIONAL THEATER ACTING IS KIND OF A FRIVOLOUS PROFESSION DON'T YOU THINK SHE SAID BEING AN ACTOR YOU DON'T GET TO CHANGE ANYBODY'S LIFE BEING A TEACHER YOU DO IN FACT SHE HAS NO PLANS TO ABANDON THE BOARDS BUT AFTER MORE THAN SIX YEARS AS MARGARET IT MAY BE TIME FOR A CHANGE ALTHOUGH PERFECT CRIME SHOWS NO SIGN OF CLOSING SOON MS RUSSELL IS THINKING OF MOVING ON TO A NEW OFFBROADWAY PLAY THIS FALL THAT SHOULD GLADDEN THE HEART OF PAMELA LEHMAN THE LATEST IN A LONG LINE OF UNDERSTUDIES FOR MS RUSSELL I NEVER WISH EVIL ON HER SIGHED THE 22YEAROLD INGENUE MY ONLY HOPE IS NOT SOMETHING TRAGIC BUT SHE'LL BE STUCK IN HER CAR OR SOMETHING LIKE THAT 9306160034 930616 MARKETING & MEDIA ADVERTISING MAGAZINES FOR THE INTERACTIVE AGE MAY BE WELL AHEAD OF THEIR TIME BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL EVERY NEW CULTURAL FORCE SEEMS TO SPAWN NEW MAGAZINES TO CHRONICLE IT BUT THIS TIME AROUND IN THE CASE OF THE COMING REVOLUTION IN MULTIMEDIA AND INTERACTIVITY THE MAGAZINES SEEM TO BE WAY OUT AHEAD OF THE CURVE THE INTERACTIVE AGE FUSES CONSUMER ELECTRONICS AND COMPUTERS WITH CABLE TELEVISION AND TELECOMMUNICATIONS AND EXPERTS KEEP SAYING IT WILL BE HERE SOON YET THE MOST EXCITING FEATURES WITH MASS APPEAL THE MUCH PROMISED ERA OF 500 CHANNELS FOR EXAMPLE ARE YEARS AWAY FROM AVAILABILITY FOR THE GAGGLE OF NEW MAGAZINES FOCUSING ON THE BUZZ THE DIFFICULTY WILL BE IN FINDING REAL ADVERTISERS AND READERS IN THE HERE AND NOW FIVE RELATIVE NEWCOMERS ARE TAKING AIM AT THE INTERACTIVE MARKET AS ARE A DOZEN OR SO NEWSLETTERS AND SPECIAL SECTIONS IN ESTABLISHED COMPUTER MAGAZINES THEY HOPE TO DUPLICATE THE PUBLISHING BOOM OF THE PERSONALCOMPUTER REVOLUTION IN 1980 ONLY 90 OR SO MAGAZINES FOLLOWED THE COMPUTER INDUSTRY BY LAST YEAR MORE THAN 300 PUBLICATIONS RAKED IN 126 BILLION IN ADVERTISING SAYS LINDA KOPP EDITOR OF THE COMPUTER PUBLISHING & ADVERTISING REPORT NEWSLETTER IN PURSUING THE INTERACTIVE REALM SOME TITLES SUCH AS NEWMEDIA FROM HYPERMEDIA COMMUNICATIONS INC TRY TO REACH PROFESSIONAL USERS OF THE FIRST WAVE OF MULTIMEDIA PRODUCTS PRIMARILY INTERACTIVE LASER DISKS KNOWN AS CDROM BUT OTHERS SUCH AS THE INDEPENDENT AND OFFBEAT WIRED PUBLISHED BY WIRED USA HOPE TO SPARK THE GENERAL PUBLIC'S FASCINATION WITH THE BURGEONING DIGITAL WORLD FINDING THE WIDER AUDIENCE AMID A TECHNOPHOBIC PUBLIC POSES THE HERCULEAN CHALLENGE OF CREATING CONSUMER APPEAL FOR WHAT IS ESSENTIALLY A HIGHTECH CULTURE TO AVOID DABBLING TOO MUCH IN VAPORWAREFEATURES THAT ARE MUCHHYPED BUT SIMPLY AREN'T READY THE NEW MEDIA MAGAZINES GO HEAVY ON ARTICLES ABOUT TODAY'S OPTICALDISK TECHNOLOGY WHICH AMONG OTHER THINGS CAN MAKE A VIDEO GAME LOOK LIKE A MINIMOVIE THE QUESTION IS WHEN ADVERTISING WILL MATERIALIZE WE'VE GOT TO HAVE A SOLID ADVERTISING BASE TO SUCCEED SAYS PATRICK FERRELL PRESIDENT OF INFOTAINMENT WORLD INC THE PUBLISHER OF E2 ELECTRONIC ENTERTAINMENT WHICH WILL APPEAR ON NEWSSTANDS LATER THIS YEAR PEOPLE IN THE ENTERTAINMENT MULTIMEDIA SIDE DON'T HAVE A MAGAZINE NOW WE KNOW WE ARE CARVING OUT NEW GROUND HERE IT'S THE TIP OF THE WAVE BUT WE WANTED TO GET OUT AND ESTABLISH OURSELVES EVEN WHEN THE NEWTECH PRODUCTS ARE ADVERTISED NOW HOWEVER THEIR MAKERS APPEAR CONTENT TO SPEND MONEY IN MORE MAINSTREAM PUBLICATIONS PHILIPS ELECTRONICS HAS PITCHED ITS COMPACT DISKINTERACTIVE OR CDI MACHINE LARGELY ON BROADCAST TELEVISION AND IN THE PAGES OF NEWSWEEK FAMILY FUN VIDEO AND EVEN USA TODAY WOULD PHILIPS CONSIDER THE NEW MEDIA TITLES THOSE ARE STILL VERY NEW WHETHER THEY CONSTITUTE A CATEGORY IT'S TOO EARLY TO TELL SAYS MICHAEL KEEL DIRECTOR OF ADVERTISING AT PHILIPS CONSUMER ELECTRONICS CO A PHILIPS UNIT MAGAZINES WITH DEEP POCKETS HAVE THE BETTER CHANCE OF WAITING FOR THE ADS TO FLOW ELECTRONIC ENTERTAINMENT A GUIDE TO VIDEO GAMES AND INTERACTIVE ENTERTAINMENT PRODUCTS IS A UNIT OF INTERNATIONAL DATA GROUP ONE OF THE WORLD'S LARGEST PUBLISHERS OF COMPUTER PUBLICATIONS FORBES INC LAUNCHED FORBES ASAP LAST DECEMBER AS A HIGHTECHNOLOGY SUPPLEMENT TO FORBES MAGAZINE AND ITS MORE THAN 750000 SUBSCRIBERS ADVERTISERS IN ASAP CAN GET DISCOUNTS ON PAGES IN FORBES IN THE CASE OF WIRED THE POCKETS OF ITS LIMITED PARTNERS AREN'T SO DEEP AND THIS WEEK PUBLISHER LOUIS ROSSETTO HAD TO FEND OFF A PUBLISHED REPORT THAT THE MAGAZINE IS IN FINANCIAL TROUBLE AND SEEKING NEW INVESTORS SAN FRANCISCOBASED WIRED HAS BEEN ABLE TO DRAW ADS FROM BEYOND THE HIGHTECH WORLD THE HIP MAGAZINE HAS LURED THE PROTOTYPICAL HIP ADVERTISER ABSOLUT WIRED'S THIRD ISSUE HITS NEWSSTANDS THIS MONTH AND PREVIOUS ISSUES HAVE SOLD CLOSE TO 100000 COPIES WITH SOME NEWSSTANDS SELLING OUT WIRED'S EARLY RESEARCH SHOWS ITS READERS TO BE AN ATTRACTIVE BUNCH THEY HAVE AVERAGE HOUSEHOLD INCOME OF 86000 AND CLOSE TO 50 HAVE COMPLETED POSTGRADUATE WORK BUT UNLIKE THE TITLES THAT FOCUS ON INTERACTIVE PRODUCTS MR ROSSETTO'S WIRED KEEPS ITS VIEW WIDE AND WEIRD IF ACCESSIBLE OUR READERS WANT TO KNOW ABOUT THE PEOPLE COMPANIES AND IDEAS BEHIND THE DIGITAL REVOLUTION THEY AREN'T INTERESTED IN TECHNO BABBLE HE SAYS ON THE NEXT COVER DISTRIBUTED IN WESTERN STATES ROCK STAR PETER GABRIEL TALKING ABOUT THE RELEASE OF THE FIRST INTERACTIVE MUSIC ALBUM ON CDROM EARLY NEXT YEAR IDG WILL SPIN OFF MULTIMEDIA WORLD A SPECIAL SECTION IN ITS PC WORLD TITLE INTO A SEPARATE MAGAZINE JONATHAN EPSTEIN MULTIMEDIA WORLD PUBLISHER BELIEVES THE PUBLICATION CAN SOME DAY RIVAL THE AD PAGES AND CIRCULATION OF COMPUTER MAGAZINES HE NOTES THAT IDG PROJECTS THAT BY THE YEAR 2000 20 OF AMERICAN HOMES WILL BE WIRED WITH SOME FORM OF INTERACTIVE CABLE AND THAT A DECADE LATER THE PENETRATION WILL HIT 80 BUT HE SAYS MULTIMEDIA WORLD WILL STICK TO THE SPECIFICS OF MULTIMEDIA PCS OR THE ONE MILLION OR SO PERSONAL COMPUTERS WITH SOUND BOARDS AND CDROM PLAYERS WE ARE PRODUCTORIENTED WE AREN'T ABOUT ISSUES OR LIFESTYLES MR EPSTEIN SAYS THE NUMBER OF PEOPLE WHO TRULY CARE ABOUT THE SOCIETAL IMPACT OF DIGITAL EVERYTHING IS SMALLER THAN YOU THINK AD NOTES ACCOUNT BAUSCH & LOMB OF ROCHESTER NY SAID IT HAD SELECTED MARGEOTES FERTITTA & WEISS NEW YORK TO HANDLE ADVERTISING FOR CUREL AND SOFT SENSE MOISTURIZER LINES AN ESTIMATED 10 MILLION TO 12 MILLION ACCOUNT THE OTHER CONTENDERS WERE WPP GROUP'S SCALI MCCABE & SLOVES NEW YORK AND OMNICOM GROUP'S ALTSCHILLER REITZFELD NEW YORK THE FORMER SC JOHNSON & SON BRANDS HAD BEEN HANDLED BY THE SAN FRANCISCO OFFICE OF FOOTE CONE & BELDING COMMUNICATIONS HILL & KNOWLTON HILL & KNOWLTON RESHUFFLED ITS TOP MANAGERS YET AGAIN WITH THE RESPONSIBILITIES OF THOMAS EIDSON FORMERLY WORLDWIDE PRESIDENT AND CHIEF EXECUTIVE NOW REDUCED TO JUST THE NORTH AMERICAN REGION IN THAT ROLE MR EIDSON SUCCEEDS DAVID MCNAUGHTON WHO NOW OVERSEES CANADIAN OPERATIONS FOUR EXECUTIVES NOW HEAD THE TROUBLED PUBLIC RELATIONS FIRM A UNIT OF WPP GROUP INCLUDING MR EIDSON CLIFFORD KAGAWA DAVID WYNNEMORGAN AND RON YOO THE MOVE A SPOKESMAN SAID ELIMINATES CORPORATE OVERHEAD MR EIDSON COULDN'T BE REACHED WHO'S NEWS WPP GROUP'S SCALI MCCABE SLOVES NEW YORK NAMED KEVIN MCKEON TO THE POST OF EXECUTIVE VICE PRESIDENT AND GROUP CREATIVE DIRECTOR ON THE PERDUE FARMS AND CASTROL ACCOUNTS A NEW POSITION MR MCKEON AGE 36 WAS A FORMER SENIOR VICE PRESIDENT AND CREATIVE DIRECTOR AT OMNICOM GROUP'S BBDO NEW YORK BEER BROUHAHA ANHEUSERBUSCH SAID IT SMOOTHED OVER A FLAP WITH AN ATLANTA TAVERN OWNER IN WHICH IT WAS ACCUSED OF RACIAL INSENSITIVITY FOR CASTING WHITE PATRONS TO APPEAR IN AN AD TO BE FILMED IN THE BAR DESPITE ITS LARGELY BLACK CLIENTELE LOU CHAMBERS OWNER OF DUGAN'S SAID ANHEUSERBUSCH CONVINCED HIM ITS CAMPAIGN IS INCLUSIVE OF MINORITIES AND SAID HE PLANS TO RESUME SALES OF THE BREWER'S PRODUCTS ONCE HE GETS A NOD FROM LOCAL MINORITY LEADERS JOCKEY AS EXPECTED JOCKEY INTERNATIONAL THE CLOSELY HELD APPAREL COMPANY TAPPED WIEDEN & KENNEDY OF PORTLAND ORE TO CREATE ADS THE NEW CAMPAIGN IS DUE THIS FALL JOCKEY ADVERTISING WAS PREVIOUSLY HANDLED IN HOUSE 9306160033 930616 WHAT'S NEWS WORLD WIDE CLINTON DEFENDED HIS RECORD AS HE TRIED TO SHAKE OFF A STRING OF MISSTEPS THIS IS THE MOST DECISIVE PRESIDENCY WE HAVE HAD IN A VERY LONG TIME ON ALL THE THINGS THAT MATTER THE PRESIDENT DECLARED AT A NEWS CONFERENCE REJECTING SUGGESTIONS THAT THE PUBLIC FOUND HIM INDECISIVE AND WAS LOSING CONFIDENCE IN HIM THERE IS NO WAVERING HE SAID REELING OFF A LIST OF ACCOMPLISHMENTS FROM EARLY CONGRESSIONAL APPROVAL OF HIS GENERAL BUDGET RESOLUTION TO US SUPPORT OF RUSSIA'S YELTSIN AND DECLINES IN UNEMPLOYMENT CLINTON SAID THE USE OF US AIR POWER WAS JUSTIFIED AGAINST A SOMALI WARLORD DESPITE CIVILIAN CASUALTIES AND WARNED THE US WOULD TAKE ACTION IF UN PEACEKEEPERS WERE ATTACKED IN BOSNIA BOSNIA'S FOREIGN MINISTER ISSUED A STINGING REBUKE TO THE NATIONS OF THE WORLD AND AN APPEAL TO STOP GENOCIDE IN BESIEGED GORAZDE IN A CHALLENGE TO THE CREDIBILITY OF THE UN WORLD CONFERENCE ON HUMAN RIGHTS IN VIENNA SILAJDZIC DEMANDED IMMEDIATE ACTION SAYING THIS IS THE TEST OF THE WORLD'S COMMITMENT TO HUMAN RIGHTS A TRUCE ACCORD WAS SIGNED IN SARAJEVO BY THE MILITARY CHIEFS OF BOSNIA'S THREE WARRING FACTIONS THE AGREEMENT CAME AS FIGHTING CONTINUED ACROSS THE FORMER YUGOSLAV REPUBLIC THE AMA AMENDED ITS BYLAWS TO BAR DISCRIMINATION AGAINST DOCTORS ON THE BASIS OF SEXUAL ORIENTATION THE VOTE BY THE AMA'S HOUSE OF DELEGATES CAME AFTER FOUR YEARS OF DEBATE ON THE ISSUE A PHARMACEUTICAL INDUSTRY GROUP IS FIGHTING WITH MANAGEDCARE HEALTH PLANS OVER WHETHER EFFORTS TO HOLD DOWN DRUG COSTS ENDANGER MINORITY PATIENTS AN ARTICLE IN A MEDICAL JOURNAL SAYS PROGRAMS THAT LIMIT WHAT DRUGS CAN BE PRESCRIBED MAY CAUSE MINORITY PATIENTS TO RECEIVE DRUGS THAT PRODUCE ADVERSE EFFECTS THE FOREST SERVICE HAS OVERESTIMATED THE AMOUNT OF TIMBER AVAILABLE FOR HARVESTING IN THE PACIFIC NORTHWEST'S SPOTTED OWL REGION ACCORDING TO A MEMO CIRCULATING AT THE WHITE HOUSE THE SECURITY COUNCIL BEGAN DISCUSSION OF A PROPOSED WORLDWIDE OIL ARMS AND FINANCIAL EMBARGO ON HAITI UNLESS DEMOCRACY IS RESTORED THE UN RESOLUTION IS EXPECTED TO BE ADOPTED THIS WEEK SEVEN RELIEF AGENCIES AGREED TO RETURN THEIR AID WORKERS TO SOMALIA'S CAPITAL A WEEK AFTER THEY WERE EVACUATED AHEAD OF A UN MILITARY OFFENSIVE MEANWHILE US DEFENSE OFFICIALS SAID A MISSILE FIRED BY A COBRA HELICOPTER VEERED OUT OF CONTROL ON MONDAY AND SMASHED INTO A CIVILIAN AREA OF MOGADISHU INJURING 12 PEOPLE AN AIR FORCE INVESTIGATION HAS FOUND THAT A TWOSTAR GENERAL RIDICULED PRESIDENT CLINTON IN A SPEECH LAST MONTH ACCORDING TO A DEFENSE OFFICIAL HE SAID NO DECISION HAD BEEN MADE YET ON POSSIBLE PUNISHMENT FOR AIR FORCE MAJ GEN HAROLD CAMPBELL THE US WOULD CONSIDER GUARANTEEING SECURITY BETWEEN ISRAEL AND SYRIA IF THE TWO LONGTIME ADVERSARIES ARE ABLE TO CONCLUDE A SOLID PEACE ACCORD SECRETARY OF STATE CHRISTOPHER SAID AS MIDEAST TALKS RESUMED JAPAN'S OPPOSITION PARTIES THREATENED TO SUBJECT MIYAZAWA TO A NOCONFIDENCE VOTE UNLESS HE EXTENDS PARLIAMENT'S SESSION TO WORK ON A COMPROMISE FOR ALTERING THE ELECTION PROCESS CUBA ANNOUNCED THAT IT HAS CUT THE SIZE OF ITS ARMED FORCES BECAUSE OF ECONOMIC PROBLEMS CUBAN OFFICIALS ALSO EXPRESSED WILLINGNESS TO NEGOTIATE REPARATIONS FOR US PROPERTIES THAT WERE CONFISCATED IN THE 1960S A SECESSIONIST MOVEMENT COLLAPSED IN CAMBODIA AFTER THE REBELLION'S LEADER FLED TO VIETNAM RENEGADE PRINCE CHAKRAPONG WAS PROTESTING THE RULING PARTY'S LOSS IN LAST MONTH'S ELECTIONS TO A PARTY LED BY HIS HALFBROTHER PRINCE RANARIDDH BOTH ARE SONS OF CAMBODIAN HEAD OF STATE SIHANOUK SIX CONSERVATIVE GROUPS STORMED OUT OF SOUTH AFRICA'S DEMOCRACY TALKS DECLARING THAT THEIR PROPOSALS WERE BEING IGNORED BUT THE GROUPS FOUR BLACK AND TWO WHITE POLITICAL ORGANIZATIONS SAID THEY PLANNED TO RETURN TO THE TALKS TOMORROW THE WALKOUT WAS SPEARHEADED BY THE INKATHA PARTY DIED JOHN CONNALLY 76 A THREETIME TEXAS GOVERNOR AND FORMER CABINET MEMBER WHO WAS WOUNDED IN THE GUNFIRE THAT KILLED PRESIDENT KENNEDY IN 1963 IN HOUSTON OF PULMONARY FIBROSIS 9306160032 930616 YOUR MONEY MATTERS TIME LINGERS FOR REFINANCING AT LOW RATES BY GEORGETTE JASEN STAFF REPORTER OF THE WALL STREET JOURNAL IF YOU DECIDED TO WAIT A WHILE BEFORE REFINANCING YOUR MORTGAGE THERE'S STILL TIME TO DO IT AND SAVE A BUNDLE A MERE 01 INCREASE IN THE CONSUMER PRICE INDEX FOR MAY VIRTUALLY ELIMINATES WORRIES ABOUT INFLATION FOR NOW AND THAT MEANS MORTGAGE RATES AREN'T GOING TO RISE ANY TIME SOON THE INFLATION JITTERS OF THE LAST COUPLE OF MONTHS WERE UNFOUNDED SAYS DAVID LEREAH CHIEF ECONOMIST FOR THE MORTGAGE BANKERS ASSOCIATION A WASHINGTON DC TRADE GROUP FOR THE NEXT QUARTER OR TWO RATES WILL HOVER AROUND CURRENT LEVELS OR MAYBE EVEN GO DOWN A NOTCH OR TWO MORTGAGE RATES LOOK PRETTY GOOD RIGHT NOW THE AVERAGE RATE ON A 30YEAR FIXEDRATE LOAN FOR INSTANCE WAS 754 LAST WEEK FRACTIONALLY ABOVE THE 746 LOW IN APRIL ACCORDING TO HSH ASSOCIATES A BUTLER NJ MORTGAGE INFORMATION FIRM THE AVERAGE FIRSTYEAR RATE ON A ONEYEAR ADJUSTABLE LOAN WAS 462 NEARLY FLAT WITH 459 IN EARLY MAY A YEAR AGO THOSE RATES WERE 861 FOR A 30YEAR LOAN AND 580 FOR A ONEYEAR ARM LENDERS SAY A FURTHER DROP COULD REIGNITE A MORTGAGE REFINANCING BOOM THAT PEAKED IN EARLY MARCH WHEN NEARLY TWOTHIRDS OF MORTGAGE APPLICATIONS WERE FOR REFINANCING THERE'S GOOD PENTUP DEMAND AT 7 OR LESS SAYS WALTER C KLEIN JR CHAIRMAN AND PRESIDENT OF SEARS MORTGAGE CO A SEARS ROEBUCK & CO UNIT AT THOSE RATES REFINANCING MEANS BIG BUCKS TO HOMEOWNERS THE MONTHLY PAYMENT ON A 30YEAR 150000 MORTGAGE AT 9 FOR INSTANCE IS ABOUT 1207 AT 7 THAT SAME MORTGAGE WOULD COST JUST UNDER 1000 A MONTH MANY PEOPLE AREN'T WAITING FOR STILL LOWER RATES ABOUT 45 OF LAST WEEK'S MORTGAGE VOLUME WAS REFINANCING A RECENT SURVEY BY THE FEDERAL NATIONAL MORTGAGE ASSOCIATION INDICATED THAT NEARLY ONE IN FIVE HOMEOWNERS REFINANCED IN LATE 1992 AND 1993 IT DEPENDS ON WHERE YOU ARE CURRENTLY SAYS RON ROGE A FINANCIAL PLANNER IN CENTEREACH NY IF YOU CAN GET A BETTER DEAL CERTAINLY YOU SHOULD TAKE IT THE OLD RULE OF THUMB WAS THAT THE NEW RATE SHOULD BE AT LEAST TWO PERCENTAGE POINTS LOWER THAN THE OLD RATE FOR REFINANCING TO BE WORTHWHILE BUT THERE ARE SO MANY VARIETIES OF MORTGAGES THESE DAYS THAT THE OLD RULES MAY NOT APPLY THE 30YEAR FIXEDRATE LOAN IS STILL THE MOST POPULAR PRODUCT BUT LENDERS SAY 15YEAR LOANS AND ADJUSTABLE RATES ARE ATTRACTING INTEREST TOO BABYBOOMERS FOR EXAMPLE MAY PREFER A 15YEAR LOAN SO THEY CAN PAY IT OFF BEFORE RETIREMENT PEOPLE WHO EXPECT TO MOVE WITHIN A FEW YEARS CAN OFTEN DO BETTER WITH AN ADJUSTABLERATE LOAN AND SOME OF THEM DON'T RESET FOR AS LONG AS SEVEN YEARS THE FIRST STEP PROFESSIONALS SAY IS TO CALL YOUR LENDER FOR CURRENT RATES AND TO FIND OUT HOW MUCH IT WOULD COST TO REFINANCE COSTS TYPICALLY INCLUDE ORIGINATION FEES OR POINTS BASED ON THE SIZE OF THE LOAN ATTORNEYS' FEES AND PERHAPS A NEW APPRAISAL OR TITLE SEARCH THEN CALL A FEW OTHER LENDERS AND ASK THE SAME QUESTIONS THE LENDER ALSO CAN TELL YOU WHAT YOUR MONTHLY PAYMENTS WOULD BE WITH A NEW LOAN FIGURE OUT HOW LONG IT WILL TAKE TO RECOUP YOUR EXPENSES BY DIVIDING THE TOTAL COSTS BY YOUR MONTHLY SAVINGS IF YOU EXPECT TO STAY IN YOUR HOME LONGER THAN THAT YOU SHOULD AT LEAST CONSIDER REFINANCING IF YOU CAN SAVE MONEY TAKE ADVANTAGE OF IT SAYS JERRY BAKER MANAGING DIRECTOR OF COUNTRYWIDE CREDIT INDUSTRIES INC THE NATION'S LARGEST RESIDENTIAL MORTGAGE LENDER A QUARTER OF A PERCENTAGE POINT ISN'T GOING TO MAKE THAT MUCH DIFFERENCE RATES ARE SO LOW THAT FOR SOME PEOPLE A 15YEAR MORTGAGE MAY NOT COST MUCH MORE A MONTH THAN THE 30YEAR LOAN THEY HAVE NOW AND THEY'LL PAY IT OFF IN HALF THE TIME AT 10 FOR INSTANCE THE MONTHLY PAYMENT ON A 150000 LOAN IS 1316 FOR 30 YEARS THE PAYMENT ON A 15YEAR LOAN AT 7 IS 1348 MANY PEOPLE CAN SAVE EVEN MORE WITH AN ADJUSTABLERATE LOAN ALTHOUGH THEY HAVE TO BE WILLING TO ACCEPT THE RISK THAT RATES WILL GO UP AT 45 THE PAYMENTS FOR THE FIRST YEAR OF A ONEYEAR ADJUSTABLE 150000 LOAN WITH A 30YEAR TERM WOULD BE JUST 760 TERMS TYPICALLY PERMIT RATES TO RISE OR FALL A MAXIMUM OF TWO PERCENTAGE POINTS A YEAR WITH A SIXPERCENTAGEPOINT CAP FOR THE LIFE OF THE LOAN SURVEYS SHOW THAT HOMEOWNERS WITH ADJUSTABLERATE MORTGAGES HAVE SAVED THOUSANDS OF DOLLARS DURING THE PAST DECADE WHEN INTEREST RATES HAVE GENERALLY DECLINED WHEN WILL RATES START TO MOVE UP NOT BEFORE YEAR END MANY ECONOMISTS SAY THE ECONOMY IS GROWING SAYS DR LEREAH OF THE MORTGAGE BANKERS ASSOCIATION BY THE END OF THE YEAR OR THE BEGINNING OF 1994 THERE MAY BE SOME INFLATIONARY PRESSURES THAT WILL PUSH RATES UP 9306160031 930616 ABREAST OF THE MARKET CONCERNS ABOUT ECONOMY HURT INDUSTRIALS DESPITE MILD CPI RISE BY DAVE PETTIT AND THOMAS E WEBER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK NAGGING CONCERNS ABOUT THE ECONOMY'S STRENGTH OVERSHADOWED ANOTHER POSITIVE READING ON INFLATION DRAGGING STOCKS MOSTLY LOWER ALTHOUGH THE LABOR DEPARTMENT FOLLOWED UP FRIDAY'S ENCOURAGING REPORT ON WHOLESALE LEVEL INFLATION WITH A MILD READING ON CONSUMER PRICES OBSERVERS SAID INVESTORS STILL HAVE A FULL PLATE OF WORRIES THE DOW JONES INDUSTRIAL AVERAGE TUMBLED BACK THROUGH THE 3500 MILESTONE LOSING 2269 OR 065 TO 349200 BUT BROADER AVERAGES LOST MUCH LESS AND ADVANCING BIG BOARD ISSUES OUTPACED DECLINERS 997 TO 922 NEW YORK STOCK EXCHANGE VOLUME TOTALED 226900000 COMPARED WITH 210410000 MONDAY FOUR COMPONENTS OF THE INDUSTRIAL AVERAGE ACCOUNTED FOR ABOUT 15 POINTS OF ITS SLIDE THEY WERE INTERNATIONAL BUSINESS MACHINES WHICH LOST 2 1/8 TO 49 7/8 DUPONT WHICH SKIDDED 1 3/4 TO 49 3/4 MINNESOTA MINING & MANUFACTURING WHICH EASED 1 1/2 TO 107 1/2 AND EASTMAN KODAK WHICH FELL 1 3/8 TO 52 3/8 NEGATIVE COMMENTS FROM SECURITIES ANALYSTS CLOBBERED IBM AND DUPONT KODAK SLID AFTER DISCLOSING PLANS TO SPIN OFF ITS CHEMICALS UNIT TRADERS COULDN'T EXPLAIN THE LOSS IN 3M THE STANDARD & POOR'S 500STOCK INDEX DECLINED 144 OR 032 TO 44627 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX LOST 050 OR 020 TO 24592 AND THE DOW JONES EQUITY MARKET INDEX FELL 118 OR 028 TO 42292 ANALYSTS SAID THE CONSUMER PRICE REPORT WHICH SHOWED A 01 INCREASE LAST MONTH AFTER A SURGE OF 04 IN APRIL WAS ENOUGH TO SHELVE INVESTORS' RECENT WORRIES ABOUT HIGHER INFLATION AND HIGHER INTEREST RATES THE RETREAT IN STOCKS INITIALLY TOOK MANY TRADERS BY SURPRISE WHAT'S TROUBLING THE MARKET RIGHT NOW IS THE UNCERTAINTY ABOUT HOW STRONG THE ECONOMY REALLY IS SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH WE ARE STILL SEEING ENOUGH POCKETS OF WEAKNESS TO LEAVE INVESTORS GUESSING ABOUT THE TRUE COURSE OF PROFITS HE SAID RONALD DORAN HEAD OF INSTITUTIONAL EQUITY TRADING AT CL KING & ASSOCIATES SAID THAT WITH INFLATION ON THE BACK BURNER SOME ARE REFOCUSING ON UNCERTAINTIES SURROUNDING THE CLINTON ADMINISTRATION'S DEFICITCUTTING AND TAX PLAN AND ITS HEALTHCARE REFORM INITIATIVE BUT MR DORAN PREDICTED THAT INSTITUTIONAL INVESTORS WILL USE ANY WEAKNESS IN STOCK PRICES TO ADD TO POSITIONS THERE WAS AN EXCELLENT NUMBER ON CPI AND CASH CONTINUES TO COME INTO EQUITY MUTUAL FUNDS I DON'T THINK THE DAY'S WEAKNESS IS ANYTHING TO WORRY ABOUT HE SAID IBM'S SHARES WERE HIT BY RENEWED FEARS THAT THE COMPANY WILL REQUIRE MORE BIG CHARGES TO PAY FOR WORKFORCE CUTS A SALOMON BROTHERS ANALYST REDUCED EARNINGS ESTIMATES FOR THE ARMONK NY COMPUTER MAKER AND WARNED THAT IBM MAY NEED TO CUT ITS DIVIDEND AGAIN OBSERVERS SAID THIS REVIVED FINANCIAL CONCERNS AND COUNTERED SOME RECENT OPTIMISTIC PERCEPTIONS ABOUT THE COMPANY DUPONT TUMBLED AFTER GOLDMAN SACHS TRIMMED EARNINGS ESTIMATES BASED ON ECONOMIC CONCERNS AND LOWERED ITS INVESTMENT RATING OF THE STOCK TO MARKET PERFORMER FROM MODERATE OUTPERFORM EASTMAN KODAK SLIPPED AFTER DISCLOSING PLANS TO SPIN OFF ITS CHEMICAL GROUP KODAK JUMPED 2 5/8 MONDAY AMID WIDESPREAD SPECULATION THAT A RESTRUCTURING MOVE WAS TO BE ANNOUNCED YESTERDAY NATIONAL SEMICONDUCTOR A SANTA CLARA CALIF CHIP MAKER GAINED 1/2 TO 15 3/4 ON MORE THAN TWICE ITS AVERAGE DAILY VOLUME THE COMPANY SAID FISCAL FOURTHQUARTER EARNINGS WERE 35 CENTS A SHARE UP 59 FROM A YEAR AGO ANALYSTS HAD PREDICTED PROFIT OF ABOUT 27 CENTS A SHARE OTHER PROMINENT SEMICONDUCTOR STOCKS ALSO GAINED MICRON TECHNOLOGY BOISE IDAHO ROSE 1 7/8 TO 34 3/4 WHILE TEXAS INSTRUMENTS WHICH ANNOUNCED NEW DEFENSERELATED ORDERS PUSHED 3 5/8 HIGHER TO 68 3/4 PRECIOUSMETALS STOCKS WERE AMONG THE DAY'S BEST PERFORMERS AS GOLD PRICES SOARED NEWMONT MINING ENDED UP 1 3/4 AT 48 1/2 HOMESTAKE MINING EDGED UP 3/4 TO 17 3/4 AND AMAX GOLD CLIMBED 3/4 TO 8 3/4 GOLD FOR AUGUST DELIVERY WAS UP 420 AN OUNCE AT 37080 NIKE THE BEAVERTON ORE FOOTWEAR MANUFACTURER SLUMPED 1 1/2 TO 66 5/8 MARKET PLAYERS LINKED THE DECLINE TO COMPETITOR REEBOK INTERNATIONAL'S BEARISH FORECAST LATE MONDAY REEBOK SAID MONDAY IT EXPECTS TO REPORT SECONDQUARTER EARNINGS OF 44 CENTS TO 48 CENTS A SHARE BELOW WALL STREET ESTIMATES REEBOK OF STOUGHTON MASS FELL 1 TO 29 TODAY MONDAY IT PLUMMETED 4 3/8 TO 30 NEWS OF FINANCIAL TROUBLES AT JAMESWAY A SECAUCUS NJ DISCOUNT RETAILER SENT THE COMPANY'S SHARES SPINNING 1 1/4 OR 59 LOWER TO 7/8 JAMESWAY SAID THAT VENDORS WERE REDUCING THE AMOUNT OF CREDIT EXTENDED TO THE COMPANY SOME SUPPLIERS HAVE REFUSED TO SHIP GOODS MIAMI PUBLISHER KNIGHTRIDDER FELL 1 1/2 TO 51 1/4 THE COMPANY SAID IT EXPECTS SECONDQUARTER EARNINGS OF 75 CENTS TO 80 CENTS A SHARE OFF FROM 84 CENTS A YEAR AGO AN EARLIER ESTIMATE FROM KNIGHTRIDDER HAD FORECAST SECONDQUARTER EARNINGS LITTLE DIFFERENT FROM THE YEAREARLIER LEVEL GANNETT ANOTHER MAJOR NEWSPAPER PUBLISHER FINISHED 1 1/4 LOWER AT 47 1/2 IN THE FIRST 10 DAYS OF JUNE CARS SOLD AT AN ANNUALIZED 68 MILLION UNIT RATE DOWN 200000 FROM LATE MAY ANALYSTS SAID THE REPORT WAS STRONG DESPITE THE DECLINE NUMBERS ARE TYPICALLY LOWER IN THE EARLY PART OF THE MONTH 9306160030 930616 A TRAIL OF TERROR TEEN'S MURDER REVEALS US GROUP SUSPECTED OF TIES TO ABU NIDAL FBI HAD THE RING IN MIDWEST UNDER WATCH BUT KILLING BROUGHT CASE TO A HEAD DIE QUICKLY MY DAUGHTER' BY WILLIAM M CARLEY STAFF REPORTER OF THE WALL STREET JOURNAL ST LOUIS EARLY ONE MORNING IN APRIL TEAMS OF FEDERAL BUREAU OF INVESTIGATION AGENTS SWEPT INTO SMALL GROCERY STORES AND AN APARTMENT IN SEVERAL POOR NEIGHBORHOODS IN THE MIDWEST THE SUSPECTS THEY ROUNDED UP AS WELL AS A FOURTH MAN ALREADY IN JAIL ARE MEMBERS OF A CELL OF ABU NIDAL'S INTERNATIONAL TERRORIST ORGANIZATION AN INDICTMENT FILED IN FEDERAL COURT HERE CHARGES THE FARFLUNG ORGANIZATION HEADED BY ABU NIDAL NOM DE GUERRE OF A PALESTINIAN NAMED SABRI ALBANNA CARRIED OUT SOME OF THE MOST SPECTACULAR ATTACKS OF THE 1980S THE GROUP MACHINEGUNNED TRAVELERS AT AIRPORTS IN ROME AND VIENNA AND BLEW UP A GULF AIR JET FLYING TO ABU DHABI FROM PAKISTAN IN DOZENS OF ATTACKS HUNDREDS OF PEOPLE WERE KILLED WHILE A FEW ABU NIDAL OPERATIVES WERE TRACED TO PUERTO RICO AND NEW YORK IN THE LATE 1980S THE FBI'S APRIL ARRESTS IN ST LOUIS IN RACINE WIS AND IN DAYTON OHIO WERE THE FIRST INDICATION THAT A CELL HAS BEEN FUNCTIONING IN AMERICA'S HEARTLAND FOR YEARS WHAT'S MORE THE FBI FOUND THAT THE MIDWEST CELL HAD BEEN RAISING MONEY TO SUPPORT TERRORISM ABROAD TO CONFER ON PLANS AND DELIVER FUNDS THE INDICTMENT ALLEGES MEMBERS OF THE CELL TRAVELED FROM THE US TO MEXICO CITY TO LIMA PERU TO ATHENS GREECE AND TO THE MIDDLE EAST THE ARRESTS ALSO SHOWED THAT THE FBI HAS BEEN AWARE OF THE CELL SINCE 1986 THE AGENCY SAYS THAT BY FOLLOWING MEMBERS TAPPING PHONES AND BUGGING THEIR HOMES YIELDING 7000 REELS OF TAPERECORDED CONVERSATIONS IT FOUND OUT WHO THE MEMBERS WERE AND HOW THEY FUNCTIONED WE LEARNED A LOT SAYS JAMES NELSON HEAD OF THE FBI'S ST LOUIS OFFICE THE INDICTMENT ALSO CHARGES THAT THE MURDER OF A TEENAGE DAUGHTER OF ONE ALLEGED CELL MEMBER PREVIOUSLY ATTRIBUTED TO PARENTAL ANGER OVER HER AMERICAN WAYS WAS MOTIVATED BY ANOTHER FACTOR THE ABU NIDAL CELL MEMBERS FEARING THE REBELLIOUS GIRL WOULD DISCLOSE THE GANG'S SECRETS PLOTTED HER DEATH TO SILENCE HER THE INDICTMENT SAYS WHEN HER MOTHER AND FATHER STABBED HER TO DEATH IN THEIR ST LOUIS APARTMENT IN 1989 THE BRUTAL KILLING WAS TAPED BY THE FBI THE OPERATIONS OF MIDEAST TERRORISTS IN THE US HAVE BECOME OF MORE THAN PASSING INTEREST THE BOMBING OF NEW YORK'S WORLD TRADE CENTER WHICH TOOK SIX LIVES AND DID 300 MILLION IN DAMAGE WAS ALLEGEDLY CARRIED OUT BY ISLAMIC FUNDAMENTALISTS THE JANUARY SHOOTING OF FIVE CENTRAL INTELLIGENCE AGENCY MEN NEAR WASHINGTON TWO WERE KILLED THREE WOUNDED HAS BEEN ATTRIBUTED TO A PAKISTANI GUNMAN A NAVY WIFE WHOSE HUSBAND'S SHIP THE USS VINCENNES DOWNED AN IRANIAN AIRLINER ONLY NARROWLY ESCAPED HARM WHEN THE VAN SHE WAS DRIVING ALONG A LA JOLLA CALIF STREET EXPLODED IN 1989 INTELLIGENCE ANALYSTS BLAME THE ATTACK ON IRANIAN TERRORISTS IT'S CLEAR THAT THE DOMESTIC US ONCE THOUGHT IMMUNE TO MIDDLE EASTERN TERRORISM NO LONGER IS SO SAYS DAVID WHIPPLE A FORMER CIA OFFICIAL THOUGH HE CAUTIONS THAT THIS DOESN'T MEAN A WAVE OF BLOODY ATTACKS WILL SWEEP ACROSS THE US ALTHOUGH THE APRIL INDICTMENTS WERE REPORTED AT THE TIME THE FULL STORY OF THE ST LOUIS CASE HAS NOT BEEN MADE CLEAR BEFORE THE CASE DRAMATICALLY ILLUSTRATES THE APPARENT OPERATION OF A TERRORIST CELL IN THE US INCLUDING THE PLOT TO SILENCE THE TEENAGE DAUGHTER AND HOW THE FBI GATHERED EVIDENCE ON THE GROUP CELL MEMBERS THE FEDERAL INDICTMENT ALLEGES INCLUDE ZEIN ISA 61 YEARS OLD OF ST LOUIS WHO WITH HIS WIFE MARIA HAS BEEN CONVICTED ON STATE CHARGES OF MURDER OTHER CELL MEMBERS THE INDICTMENT ALLEGES ARE SAIF STEVE NIJMEH 32 OF ST LOUIS HIS BROTHER LUIE 29 WHO LIVES IN DAYTON AND TAWFIQ TONY MUSA 43 OF RACINE THE FOUR HAVE PLEADED NOT GUILTY TO FEDERAL CHARGES OF OPERATING A TERRORIST ENTERPRISE AND CONSPIRING TO MURDER LINDA MURPHY ATTORNEY FOR MR MUSA SAYS MY CLIENT IS NOT NOW AND NEVER HAS BEEN A TERRORIST HE'S AN AMERICAN CITIZEN WHO EARNS HIS LIVING AS A GROCER IN RACINE KEITH LIEBERMAN ATTORNEY FOR STEVE NIJMEH SAYS THAT WHEN MR NIJMEH WAS ARRESTED AND QUESTIONED BY THE FBI MR NIJMEH TOLD THE AGENTS I DON'T KNOW ANYTHING ABOUT ABU NIDAL I'M NOT ANYBODY'S TOOL LAWYERS FOR THE TWO OTHER DEFENDANTS DECLINED TO ELABORATE ON THEIR CLIENTS' PLEAS OF INNOCENCE THE CASE BEGAN IN 1986 WHEN THE FBI WAS TIPPED OFF THAT A CELL WAS BEING FORMED THE ALLEGED MEMBERS ARE PALESTINIAN HAVING MOVED ABROAD DURING WARS WITH ISRAEL MR ISA FOR EXAMPLE WHO LIVED IN THE ISRAELIOCCUPIED WEST BANK MOVED TO BRAZIL WHERE HE MET HIS WIFE THEY MOVED TO PUERTO RICO BEFORE SETTLING IN MISSOURI A NUMBER OF PALESTINIANS MOVING TO THE US HAVE OPENED GROCERY STORES IN POORER PREDOMINANTLY MINORITY AREAS OF THE MIDWEST MR ISA OPERATED A MARKET IN SOUTH ST LOUIS STEVE NIJMEH RAN ONE NORTH OF ST LOUIS HIS BROTHER OPERATED A CONVENIENCE STORE IN DAYTON AND MR MUSA WORKED IN A STORE IN RACINE THROUGH FAMILY CONNECTIONS THEY KNEW ONE ANOTHER ABOUT THE TIME THE FBI LEARNED A CELL WAS BEING ESTABLISHED VIOLENCE IN THE MIDEAST WAS ABOUT TO INTERSECT WITH THE ST LOUIS GROUP NEAR TEL AVIV MAHMOOD ATTA AND A COUSIN ATTACKED AN ISRAELI BUS KILLING THE BUS DRIVER MR ATTA FLED BUT HIS COUSIN WAS CAPTURED AND TOLD ISRAELI AUTHORITIES THAT MR ATTA WAS PART OF THE ABU NIDAL ORGANIZATION US INTELLIGENCE AGENTS SAY MR ATTA WAS CHIEF OF ABU NIDAL'S OPERATIONS IN THE US AND LATIN AMERICA WITH THE HELP OF THE COUSIN'S INFORMATION ISRAELI AND US AGENTS TRACKED MR ATTA TO PUERTO RICO WHERE HE HAD BEEN LIVING TO CARACAS VENEZUELA AND THEN TO MEXICO CITY IT WAS IN MEXICO THAT A CRUCIAL MEETING WAS TO TAKE PLACE MR ATTA WAS TO GIVE THE NEW CELL MEMBERS THEIR ORDERS ACCORDING TO THE INDICTMENT IN APRIL 1987 MR ISA AND STEVE AND LUIE NIJMEH FLEW TO THE MEXICAN CAPITAL FROM ST LOUIS THERE MR ATTA TOLD THE THREE MEN THAT THEIR CELL WAS TO RAISE MONEY IN THE US BY FRAUD THEFT AND EXTORTION THE INDICTMENT SAYS AND THEN SMUGGLE THE FUNDS OVERSEAS TO FINANCE TERRORIST OPERATIONS MR ATTA ALSO ALLEGEDLY TOLD THE MEN THAT THEY WERE TO FRAUDULENTLY OBTAIN US PASSPORTS SO OTHER ABU NIDAL OPERATIVES COULD TRAVEL UNDER FALSE NAMES HE ALSO TOLD THEM TO GATHER DATA ON JEWISH GROUPS IN THE US THAT MIGHT BE TARGETS FOR TERRORISM TO RECRUIT NEW MEMBERS AND TO MURDER POTENTIAL INFORMANTS THE INDICTMENT SAYS THE HEAD OF THE CELL THE FEDERAL PROSECUTORS ALLEGE WAS TO BE MR MUSA IN RACINE WHEN THE MEETING WAS OVER MR ATTA RETURNED TO CARACAS HE WAS ARRESTED SENT TO NEW YORK AND THEN EXTRADITED TO ISRAEL WHERE HE WAS CONVICTED OF THE KILLING OF THE BUS DRIVER HE IS NOW SERVING A LIFE PRISON TERM MEANWHILE THE FEDERAL INDICTMENT SAYS MR ISA AND THE TWO NIJMEH BROTHERS RETURNED TO THE US TO BEGIN THEIR WORK FOR ABU NIDAL WHAT THE MEN DIDN'T KNOW WAS THAT ISRAELI AND US AGENTS HAD MANAGED TO FOLLOW MR ATTA TO MEXICO CITY AND HAD THE MEETING UNDER SURVEILLANCE EVEN TAKING PHOTOGRAPHS OF THE GROUP BACK IN THE US THE FBI HAD PLACED LISTENING DEVICES IN THE MEN'S HOMES AND STORES IN MR ISA'S ST LOUIS FLAT FOR EXAMPLE THERE WAS A TAP ON THE PHONE AS WELL AS A MICROPHONE IN A CLOSET NEAR THE LIVING ROOM FEDERAL AND STATE INVESTIGATORS SAY THE ABU NIDAL CELL USED SEVERAL METHODS TO RAISE MONEY FOR TERRORISM ABROAD THEY WOULD STEAL A TRUCKLOAD OF LIGHT BULBS AND THEN RETAIL THE LIGHT BULBS THROUGH THESE LITTLE GROCERY STORES THAT THE PALESTINIANS RUN IN INNERCITY GHETTOS SAYS ONE FEDERAL INVESTIGATOR THEY MIGHT KEEP SOME OF THE PROCEEDS FOR THEMSELVES AND SEND THE REST ON TO THE ABU NIDAL ORGANIZATION IN SOME CASES CASH MAY HAVE BEEN SMUGGLED TO THE MIDEAST IN 1988 WHEN MR ISA TRAVELED TO THE WEST BANK TO VISIT RELATIVES MR MUSA HAD HIM TAKE ALONG 15000 TO DELIVER TO ABU NIDAL OPERATIVES THERE AN FBI AFFIDAVIT IN THE FEDERAL CASE SAYS ON HIS RETURN THE AFFIDAVIT ADDS MR ISA BRAGGED ABOUT HOW HE SLIPPED THE MONEY PAST ISRAELI GUARDS NOTING THAT IT IS NOT EASY TO FOOL THEM ON ANOTHER TRIP LUIE NIJMEH ALLEGEDLY SMUGGLED MORE THAN 10000 TO ABU NIDAL MEN IN THE WEST BANK MONEY ALSO MAY HAVE BEEN RAISED THROUGH SALES OF DRUGS IN JANUARY WHEN LUIE NIJMEH WAS STOPPED FOR DRIVING WITHOUT HEADLIGHTS ST LOUIS POLICE SAY THEY FOUND FIVE BAGS WITH NEARLY 150 GRAMS OF COCAINE IN THE CAR STATE DRUG CHARGES ARE PENDING OVER THE YEARS THE FBI LISTENING DEVICES PICKED UP TALK ABOUT BOMBING THE ISRAELI EMBASSY IN WASHINGTON AND CHATTER ABOUT HIDDEN CACHES OF ASSAULT RIFLES AND ROCKETPROPELLED GRENADES THE FEDERAL AFFIDAVIT SAYS HOWEVER FBI AGENTS FOUND ONLY THREE PISTOLS IN THE APRIL ARRESTS AND THERE HAS BEEN NO ATTACK ON THE EMBASSY IN 1989 EVENTS TOOK A SINISTER TURN THE UNIT FACED A THREAT IN THE PERSON OF 16YEAROLD PALESTINA THE ISAS' DAUGHTER TINA AS SHE WAS CALLED WAS A SENIOR AT ROOSEVELT HIGH IN ST LOUIS SHE WAS CONSIDERED BRIGHT LIKABLE AND FUN TAKING TOUGH SUBJECTS LIKE PHYSICS ANALYTICAL GEOMETRY AND TRIGONOMETRY SHE WAS A B+ STUDENT AND HOPED TO GO TO COLLEGE TO STUDY AERONAUTICAL ENGINEERING SHE WAS A SUPER KID SAYS WILLIAM PURDY THE SCHOOL'S PRINCIPAL THE STUDENTS AND FACULTY REALLY LIKED HER SHE HAD A SMILE FOR EVERYONE BUT AT HOME TINA'S PARENTS WERE FURIOUS BECAUSE SHE WENT TO A SCHOOL DANCE AND HAD A BLACK BOYFRIEND HER MOTHER AND AN OLDER SISTER DISRUPTED THE DANCE ORDERING TINA TO GO HOME AND TO DROP HER BOYFRIEND AT ONE POINT TINA RAN AWAY FROM HOME FOR THREE DAYS FINALLY SHE BEGAN TALKING ABOUT LEAVING PERMANENTLY WHEN SHE TURNED 17 HER BIRTHDAY WAS A FEW WEEKS AWAY TINA HOWEVER HAD LEARNED MUCH ABOUT THE ACTIVITIES OF HER FATHER AND THE OTHERS IN THE ABU NIDAL CELL THE FBI AFFIDAVIT STATES ONCE TINA LEFT HOME SHE MIGHT EXPOSE THE GROUP TO SILENCE HER MEMBERS DECIDED TO KILL HER THE AFFIDAVIT SAYS IN A SERIES OF RECORDED CONVERSATIONS QUOTED IN THE AFFIDAVIT THE FOUR MEN DISCUSSED THE PLAN SHE KNOWS MANY THINGS SAID STEVE NIJMEH URGING HER KILLING LUIE NIJMEH RECOMMENDED KIDNAPPING TINA AND TAKING HER TO THE WEST BANK WHERE SHE COULD BE KILLED SAFELY AND WITHOUT SUSPICION THE AFFIDAVIT SAYS WHEN THAT IDEA WAS REJECTED MR MUSA ALLEGEDLY URGED STEVE NIJMEH TO HELP KILL THE GIRL STEVE REPLIED THAT THE JOB SHOULD BE LEFT TO HER FATHER IN A SERIES OF PHONE CALLS MR ISA BEGAN PREPARING HIS OLDER MARRIED DAUGHTERS FOR TINA'S DEATH WHILE TELEPHONING ONE DAUGHTER MR ISA CALLED TINA A WHORE FOR THE BLACKS IN A CALL TO ANOTHER DAUGHTER HE ADDED IF GOD MAKES MY WISH I'LL PUT HER IN THE GRAVE HE TOLD A THIRD DAUGHTER THAT HE WOULD PLEAD SELFDEFENSE AND I'LL PUT THE KNIFE IN HER HAND AFTER SHE FALLS DOWN OF COURSE ON NOV 5 1989 TINA WENT TO WORK AT A WENDY'S RESTAURANT IN SOUTH ST LOUIS RETURNING TO THE FAMILY'S NEARBY APARTMENT ABOUT MIDNIGHT THE FBI MICROPHONE HIDDEN IN THE CLOSET RECORDED WHAT HAPPENED NEXT THE APARTMENT DOOR BANGED SHUT WHERE WERE YOU BITCH MRS ISA SNARLED AT HER DAUGHTER WORKING TINA REPLIED IN A SUBDUED VOICE THE FATHER AND MOTHER THEN LAUNCHED INTO BITTER DENUNCIATIONS OF TINA FOR WORKING AT WENDY'S GETTING HOME SO LATE HAVING A BLACK BOYFRIEND AND FAILING TO WASH HER MOTHER'S CLOTHES YOU ARE A SHEDEVIL MR ISA TOLD TINA LISTEN MY DEAR DAUGHTER DO YOU KNOW THAT THIS IS THE LAST DAY TONIGHT YOU'RE GOING TO DIE HUH TINA SAID IN A TONE OF SHOCK MOMENTS LATER PROSECUTORS CHARGED IN THE STATE TRIAL MRS ISA DIVERTED TINA'S ATTENTION BY GRABBING HER BOOK BAG TINA MY BOOKS MOM THEY'RE NOT YOURS THEY BELONG TO THE SCHOOL MEANWHILE THE PROSECUTORS CHARGED MR ISA WENT TO THE KITCHEN GRABBED A NINEINCH BUTCHER KNIFE RETURNED AND PLUNGED IT INTO TINA'S CHEST ON THE TAPE RECORDING TINA UTTERED A PIERCING SCREAM SHE BEGGED MOTHER PLEASE HELP ME MARIA ISA HUH WHAT DO YOU MEAN WHAT HELP SOUNDS OF A FIERCE STRUGGLE BROKE OUT STATE PROSECUTORS CHARGED THAT INSTEAD OF HELPING THE 224POUND MRS ISA WRESTLED HER DAUGHTER TO THE FLOOR THEN HELD HER BY THE HAIR WHILE HER HUSBAND STABBED THE TEENAGER AGAIN AND AGAIN FOR SEVEN MINUTES SOUNDS OF THE STRUGGLE CONTINUED AT ONE POINT TINA CRIED NO PLEASE NO NO BUT AGAIN AND AGAIN HER SCREAMS PUNCTUATED THE TAPE NEAR THE END MR ISA PANTING FROM HIS EXERTIONS SAID QUIETLY DIE DIE QUICKLY DIE MY DAUGHTER DIE TINA UTTERED ONE LAST HEARTRENDING SCREAM THEN THERE WAS SILENCE MRS ISA CALLED THE POLICE THE NEXT DAY FBI AGENTS IN ST LOUIS READ ABOUT THE KILLING IN A LOCAL NEWSPAPER THE AGENTS SAID OH MY GOD LET'S GET THOSE TAPES' SAYS MR NELSON THE FBI OFFICIAL SINCE THE BUREAU DIDN'T FEAR ANY IMMEDIATE ACTIVITY BY THE CELL THE TAPES HADN'T BEEN CONTINUOUSLY MONITORED THE AGENTS SCRAMBLED TO RETRIEVE THEM AND GET TRANSLATORS FOR THE CONVERSATIONS WHICH WERE IN ARABIC AND IN THE BRAZILIAN MOTHER'S NATIVE PORTUGUESE ST LOUIS POLICE WHO HAD ARRESTED AND THEN RELEASED MR ISA SHORTLY AFTER THE KILLING REARRESTED HIM THEY ALSO ARRESTED MRS ISA DURING THE STATE MURDER TRIAL MR ISA CONTENDED THAT A REBELLIOUS TINA HAD COME AT HIM WITH A KNIFE AND THAT WHILE HE WRESTLED WITH HER THE KNIFE WENT INTO HIS DAUGHTER THE ST LOUIS MEDICAL EXAMINER TESTIFIED THAT TINA SUFFERED SIX DEEP STAB WOUNDS IN THE CHEST AND ABDOMEN INCLUDING ONE FATAL WOUND WHEN THE KNIFE PIERCED HER HEART THE FBI TAPE ALSO WAS INTRODUCED INTO EVIDENCE A JURY CONVICTED BOTH ZEIN AND MARIA ISA OF MURDER THE TRIAL JUDGE SENTENCED THEM TO DEATH BOTH ARE IN JAIL PENDING THEIR APPEALS MR MUSA AND STEVE AND LUIE NIJMEH ALSO ARE IN JAIL THEY AS WELL AS MR ISA ARE AWAITING TRIAL ON THE TERRORISM CHARGES TO BE HELD IN FEDERAL DISTRICT COURT IN ST LOUIS THE MURDER TURNED OUT TO BE FOR NAUGHT COURT DOCUMENTS MAKE IT CLEAR THAT THE FBI'S OWN INQUIRY YIELDED MORE EVIDENCE THAN TINA COULD EVER HAVE PROVIDED 9306160029 930616 WHAT'S NEWS BUSINESS AND FINANCE KODAK PLANS TO SPIN OFF ITS BIG CHEMICAL UNIT ADDRESSING INVESTOR DEMANDS THAT THE COMPANY SHED A MAJOR ASSET AND FOCUS ON ITS CORE IMAGING BUSINESS THE SPINOFF IS THE FIRST PART OF A RESTRUCTURING PLAN THAT KODAK'S CHAIRMAN HAS PROMISED TO DELIVER BY SEPTEMBER HE SAID A NEW PRICING STRATEGY FOR FILM PRODUCTS WILL BE A KEY PART OF THAT PLAN CONSUMER PRICES EDGED UP 01 IN MAY QUIETING FEARS THAT INFLATION WAS ON THE RISE FOLLOWING APRIL'S 04 RISE COMBINED WITH LAST WEEK'S REPORT THAT MAY PRODUCER PRICES WERE UNCHANGED THE FIGURES MEAN THE FED ISN'T LIKELY TO BOOST INTEREST RATES IMMEDIATELY SALES OF CARS AND LIGHT TRUCKS MADE IN NORTH AMERICA ROSE 155 IN EARLY JUNE REFLECTING A STEADY BUT UNSPECTACULAR RECOVERY SEPARATELY US PRICES OF JAPANESE CARS CONTINUED TO RISE AS NISSAN LIFTED PRICES AGAIN PRESSURED BY THE SURGING YEN HONDA IS DOUBLING THE SIZE OF A RECALL TO 18 MILLION CARS ITS LARGEST RECALL EVER HONDA'S ACTION WHICH AFFECTS CERTAIN ACCORDS AND PRELUDES THAT ARE SUSCEPTIBLE TO A DEFECT THAT COULD CAUSE GAS LEAKS OR FIRES COMES AMID THIN PROFITS AND SLUGGISH SALES THE DOW JONES INDUSTRIALS SANK 2269 POINTS TO 349200 AFTER AN UPBEAT INFLATION REPORT FAILED TO CHEER INVESTORS BOND PRICES WERE MIXED WITH THE PRICE OF THE TREASURY'S 30YEAR BENCHMARK ISSUE FALLING SLIGHTLY THE PRESIDENT SAID HE DOESN'T EXPECT TO ENDORSE ALL OF THE CHANGES THAT THE SENATE MAKES TO HIS DEFICITREDUCTION PLAN BUT HE PROMISED TO FIGHT FOR HIS PRIORITIES WHEN THE MEASURE GOES TO A HOUSESENATE CONFERENCE THE FULL SENATE COULD TAKE UP A BILL NEXT WEEK KEMPER TOOK ITS UNDERACHIEVING BROKERAGE OPERATION OFF THE BLOCK ACKNOWLEDGING THAT THE FINANCIAL SERVICES COMPANY WAS UNABLE TO FIND A SUITABLE OFFER FOR ITS UNIT HEINZ'S NET PLUNGED 52 IN THE LATEST QUARTER AFTER A 111 MILLION RESTRUCTURING CHARGE REFLECTING ITS EFFORTS TO SLASH COSTS AMID FLAT PRICES CONCERNS ABOUT PRICES LED SOME ANALYSTS TO REDUCE THEIR FISCAL 1994 PROFIT FORECASTS US MERGER ACTIVITY SO FAR THIS YEAR ROSE 29 FROM THE YEARAGO PERIOD BUT THIS YEAR'S 681 BILLION IN ANNOUNCED DEALS IS RUNNING AT ONLY ABOUT HALF THE RATE IN 1988 THE LATEST YEAR IN WHICH ANNOUNCED DEAL ACTIVITY ROSE CLINTON MAY MODIFY HIS PLEDGE TO CUT US EMISSIONS OF GREENHOUSE GASES TO 1990 LEVELS BY THE YEAR 2000 UNDER THE REVISED PLAN US INDUSTRIES WOULD BE ALLOWED TO CUT EMISSIONS OVERSEAS RATHER THAN IN THE US JAPAN'S TRADE SURPLUS EDGED DOWN 01 IN MAY THE FIRST DROP IN 29 MONTHS BUT ANALYSTS SAID THE FIGURES ARE PROBABLY JUST A BLIP AND THE SURPLUS WILL CONTINUE TO GROW THIS YEAR THE IRS HAS COLLECTED A SURPRISINGLY LARGE 674 MILLION SO FAR AS A RESULT OF A 1986 STATUTE THAT REQUIRES STATES AND LOCALITIES TO REBATE MUNIBOND ARBITRAGE PROFITS TO THE IRS TOKYO STOCKS TUMBLED 17 TUESDAY AMID A CONTINUING SURGE IN THE YEN TO ANOTHER RECORD AGAINST THE DOLLAR THE NIKKEI FELL 35147 TO 2004588 LONDON PRICES FELL SHARPLY ON PERCEPTIONS THAT PROSPECTS FOR A BRITISH INTERESTRATE CUT WERE DIMINISHING THE DEFICIT ON THE BROADEST MEASURE OF US TRADE THE CURRENT ACCOUNT NARROWED TO 2091 BILLION IN THIS YEAR'S FIRST QUARTER FROM 2369 BILLION IN THE FOURTH QUARTER OF LAST YEAR BONDS LEHMAN BROTHERS TREASURY INDEX 517837 UP 150 COMMODITIES OIL 1858 A BARREL OFF 31 CENTS DOW JONES FUTURES INDEX 12083 UP 020 SPOT INDEX 11983 UP 021 DOLLAR 10575 YEN UP 065 16455 MARKS UP 00175 9306160028 930616 EXIBM OFFICIAL AKERS JOINS LORENZO ON AIRLINE VENTURE NEW YORK AP FORMER IBM CHAIRMAN JOHN AKERS HAS INVESTED IN FRANK LORENZO'S FLEDGLING EFFORT TO REENTER THE AIRLINE INDUSTRY A SPOKESMAN FOR MR LORENZO SAID MR AKERS WHO LEFT INTERNATIONAL BUSINESS MACHINES CORP EARLIER THIS YEAR ALSO WILL BECOME A DIRECTOR AT ATX INC WHICH UNTIL RECENTLY WAS KNOWN AS FRIENDSHIP AIRLINES MR LORENZO WHO CONTROLS 77 OF THE CARRIER HAS ALREADY HIRED FORMER EASTERN AIRLINES EXECUTIVE STEPHEN KOLSKI AS PRESIDENT AND CHIEF EXECUTIVE OFFICER MR KOLSKI OWNS 85 OF THE AIRLINE THE SPOKESMAN RICHARD DANFORTH DIDN'T DISCLOSE MR AKERS'S INTEREST BUT SAID THE STAKES OF OTHER INVESTORS WOULDN'T BE SUBSTANTIALLY INFLUENCED BY MR AKERS'S SHARE HIS EXPERIENCE IN TECHNICAL AND INFORMATION PROCESSING WILL BE OF GREAT HELP AS WE BUILD A TECHNICALLY ADVANCED AIRLINE MR DANFORTH SAID MR LORENZO PLANS TO RENT TWO JETS TO FLY BETWEEN BOSTON WASHINGTON AND ORLANDO FLA BUT HIS EFFORTS TO OBTAIN DEPARTMENT OF TRANSPORTATION APPROVAL HAVE RUN INTO OPPOSITION FROM UNION LEADERS STILL BITTER OVER THE EASTERN AIRLINES FIASCO THE DEPARTMENT OF TRANSPORTATION TOOK THE UNUSUAL STEP LAST MONTH OF ORDERING A PUBLIC HEARING TO DETERMINE WHETHER MR LORENZO IS FIT TO OWN ANOTHER AIRLINE NEITHER MR AKERS NOR HIS REPRESENTATIVE COULD BE REACHED FOR COMMENT 9306160027 930616 ECONOMY SALES OF DOMESTIC VEHICLES ROSE 155 IN EARLY JUNE AMID STEADY RECOVERY BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT SALES OF NORTH AMERICANMADE CARS AND LIGHT TRUCKS IN EARLY JUNE WERE UP 155 FROM A YEAR EARLIER REFLECTING A STEADY RECOVERY BUT NOT A SIZZLING ONE SEPARATELY THE ESCALATION OF JAPANESE CAR PRICES CONTINUED IN THE WAKE OF THE SURGING YEN NISSAN MOTOR CO RAISED PRICES ON MANY OF ITS MODELS IN THE US FOR THE FOURTH TIME IN A YEAR USBUILT CARS AND LIGHT TRUCKS SOLD AT A SEASONALLY ADJUSTED ANNUAL PACE OF 12 MILLION VEHICLES SUBSTANTIALLY BETTER THAN THE 109 MILLIONVEHICLE PACE OF A YEAR AGO AND EVEN WITH THE 12 MILLIONVEHICLE RATE OF THE PREVIOUS 30 DAYS VEHICLE SALES ARE RISING DESPITE A DECLINE IN FLEET SALES AND A DECLINE IN CUSTOMER INCENTIVES SAID JOHN CASESA AN ANALYST AT WERTHEIM SCHRODER & CO WHO CALLED THE SALES GROWTH STRONG BUT PART OF THE INCREASE IN SALES OF DOMESTICALLY PRODUCED VEHICLES REFLECTS A SHIFT AWAY FROM IMPORTS AS THE SURGING YEN CONTINUES TO MAKE JAPANESE PRODUCTS MORE EXPENSIVE IN THE US NISSAN SAID ITS LATEST PRICE INCREASES AVERAGE 08 ON SELECTED MODELS THE PRICE OF A GENEROUSLY EQUIPPED MAXIMA GXE WILL INCREASE 215 TO 21325 THAT'S UP 44 FROM A YEAR AGO WHEN THE GXE WAS PRICED AT 20425 NISSAN'S USMADE ALTIMA SEDAN AND QUEST MINIVAN AREN'T INCLUDED IN THE LATEST ROUND OF PRICE INCREASES NISSAN HAD BASED ITS FINANCIAL PLANS FOR THE YEAR ON A DOLLAR TRADING AT 120 YEN A SPOKESMAN SAID BUT THE DOLLAR DROPPED THIS WEEK TO A RECORD LOW OF 105 YEN ON AN ANNUALIZED BASIS THE STRONG YEN ALONE MEANS A 600 MILLION DROP IN PROFITS AT NISSAN THE SPOKESMAN SAID WHILE NOT ALL AUTO MAKERS INCLUDED IMPORTED VEHICLES IN EARLY JUNE SALES REPORTS THE PARTIAL REPORTS SHOW IMPORT SALES GROWING BY A MODEST 37 OVER LAST YEAR LAGGING BEHIND THE OVERALL MARKET OVERALL 360241 DOMESTICALLY BUILT CARS AND LIGHT TRUCKS WERE SOLD IN EARLY JUNE UP FROM 311978 A YEAR EARLIER DOMESTIC CAR SALES CLIMBED 88 AND DOMESTIC TRUCK SALES CONTINUED TO LEAD THE INDUSTRY WITH 254 SALES GROWTH GENERAL MOTORS CORP SOLD 154534 VEHICLES IN THE FIRST 10 DAYS OF JUNE AN 82 INCREASE FROM A YEAR EARLIER THE INCREASE COMES FROM ITS TRUCK OPERATIONS WHICH INCREASED SALES BY 256 FROM A YEAR EARLIER GM CAR SALES FELL 04 FROM A YEAR EARLIER GM'S CADILLAC DIVISION SUFFERED A SHARP DROP IN SALES AS DEMAND FOR ITS HIGHESTVOLUME MODEL THE DEVILLE SLUMPED BY 32 FROM LAST YEAR FORD MOTOR CO'S TOTAL CAR AND LIGHTTRUCK SALES IN EARLY JUNE CLIMBED 148 FROM A YEAR EARLIER TO 108123 VEHICLES SALES OF FORD LIGHT TRUCKS ROSE 218 SALES OF THE FORD RANGER A SPORTY COMPACT PICKUP WERE UP 28 CHRYSLER CORP'S VEHICLE SALES WERE UP 349 ACCORDING TO ESTIMATES FROM WARD'S AUTOMOTIVE REPORTS A TRADE JOURNAL CHRYSLER DOESN'T RELEASE SALES RESULTS UNTIL THE END OF THE MONTH NISSAN SAID SALES OF ITS DOMESTICALLY PRODUCED VEHICLES JUMPED 676 IN THE LATEST TEN DAYS LARGELY BECAUSE OF ITS HIGHLY SUCCESSFUL NISSAN ALTIMA SEDAN SALES OF DOMESTIC AND IMPORTED VEHICLES AT TOYOTA MOTOR CORP WERE UP 317 BUT SALES AT HONDA MOTOR CO CONTINUED TO DROP FALLING 126 FROM A YEAR EARLIER 9306160026 930616 BUSINESS BRIEF MAGMA COPPER CO ENVIRONMENTAL STATEMENT REQUIREMENT DELAYS PROJECT THE BUREAU OF LAND MANAGEMENT REVERSED ITS OPINION THAT MAGMA COPPER CO'S NEW ROBINSON COPPER AND GOLD MINE WILL HAVE NO SIGNIFICANT ENVIRONMENTAL IMPACT THE TUCSON ARIZ COMPANY SAID DELAYING THE PROJECT'S STARTUP AS A RESULT MAGMA WILL HAVE TO WRITE AN ENVIRONMENTAL IMPACT STATEMENT BEFORE RECEIVING PERMITS FOR THE PROJECT THE COMPANY HAD PLANNED TO START PRODUCTION AT THE ROBINSON MINE NEAR ELY NEV IN LATE 1994 THE PROJECT WILL BE DELAYED BUT MAGMA SAID IT CAN'T YET ESTIMATE THE LENGTH OR COST OF THE DELAY THE BLM'S EARLIER DECISION WHICH WOULD HAVE ALLOWED THE PERMITTING PROCESS TO CONTINUE WITHOUT REQUIRING THE IMPACT STATEMENT WAS CHALLENGED BY THE SIERRA CLUB AND THE MINERAL POLICY CENTER ON PROCEDURAL GROUNDS THE MINE IS EXPECTED TO PRODUCE ABOUT 125 MILLION POUNDS OF COPPER AND 86500 OUNCES OF GOLD A YEAR OVER 16 YEARS AND EMPLOY 450 PEOPLE THE ROBINSON PROPERTY HAS BEEN PRODUCING COPPER AT MUCH LOWER PRODUCTION LEVELS SINCE 1908 MAGMA ACQUIRED THE SITE IN 1991 9306160025 930616 BUSINESS BRIEF NEWS CORP MURDOCH NEGOTIATES TO BUY STAKE IN ASIAN TV CONCERN RUPERT MURDOCH'S NEWS CORP SAID IT IS CLOSE TO BUYING 22 OF HONG KONGLISTED TELEVISION BROADCAST LTD MARKING THE AUSTRALIANBORN MEDIA MAGNATE'S ENTREE INTO ASIA'S FASTGROWING TV MARKET NEWS CORP PLANS TO ACQUIRE THE STAKE FOR 19 BILLION HONG KONG DOLLARS US2458 MILLION OR HK20 A SHARE US259 FROM TVB'S TWO LARGEST SHAREHOLDERS SHAW BROTHERS HONG KONG LTD AND KERRY GROUP PLC SHAW BROTHERS HEADED BY HONG KONG'S SIR RUN RUN SHAW HOLDS A 34 STAKE IN THE COMPANY AND KERRY GROUP LED BY MALAYSIANBORN TYCOON ROBERT KUOK HOLDS 32 THE REMAINDER IS IN PUBLIC HANDS THE TRANSACTION IF COMPLETED WOULD BE THE FIRST STEP IN REALIZING MR MURDOCH'S AMBITION TO PROVIDE TELEVISION PROGRAMMING IN ASIA PARTICULARLY IN CHINA TVB IS A MAJOR PRODUCER OF CHINESELANGUAGE PROGRAMMING AND ALREADY BROADCASTS INTO SOUTHERN CHINA 9306160024 930616 ENTERPRISE STRATEGIC ALLIANCES HOLD KEY TO BROADBAND'S FINANCING HIGHTECH FIRM HOPES CORPORATE BACKING WILL ALSO BOOST PUBLIC OFFERING BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL SMALL HIGHTECH FIRMS OFTEN RUN AGROUND BECAUSE THEY LACK THE FINANCIAL MOXIE TO EXPLOIT A PROMISING INNOVATION BUT SO FAR BROADBAND TECHNOLOGIES INC HAS AVOIDED THAT PITFALL THE TRICK THE FIVEYEAROLD RESEARCH TRIANGLE PARK NC COMPANY WON SUPPORT FROM SEVERAL MAJOR CORPORATIONS AT AN EARLY STAGE BROADBAND IS DEVELOPING WHAT MANY CONSIDER TO BE A KEY TECHNOLOGY IN DELIVERING VIDEOONDEMAND SERVICES TO HOMES THE FIRM'S BIGGEST BACKER IS BELL ATLANTIC CORP WHICH IN FEBRUARY AGREED TO BUY AS MUCH AS 100 MILLION OF ITS PRODUCTS ANOTHER SUPPORTER IS AMP INC A HARRISBURG PA SELLER OF ELECTRIC AND ELECTRONIC CONNECTORS IN DECEMBER 1991 AMP INVESTED MORE THAN 5 MILLION IN BROADBAND AND ALSO PROVIDED A 5 MILLION CREDIT LINE IN RETURN FOR A 17 STAKE BASED ON THESE TWO ALLIANCES AND CURRENT FIELD TESTS BY FIVE OTHER TELEPHONE COMPANIES BROADBAND EXPECTS TO SELL 28 MILLION SHARES AT 15 TO 17 APIECE IN AN INITIAL PUBLIC OFFERING THIS MONTH WITH 107 MILLION SHARES OUTSTANDING AFTER THE OFFERING THAT WOULD REPRESENT A MARKET VALUE OF MORE THAN 160 MILLION NO MEAN FEAT FOR A STARTUP WITH SALES SINCE 1988 OF JUST OVER 10 MILLION AND TOTAL LOSSES EXCEEDING 35 MILLION BROADBAND'S EXPERIENCE HIGHLIGHTS THE IMPORTANCE OF HIGHTECH FIRMS FORGING STRATEGIC ALLIANCES AS QUICKLY AS POSSIBLE BECAUSE OF THE GLOBALIZATION AND SCALE NEEDED TO PENETRATE WORLD MARKETS TRYING TO NUZZLE YOUR WAY IN AS A SMALL COMPANY IS EXTREMELY HARD SAYS ANTHONY WARREN PRESIDENT OF TECHNOLOGY MANAGEMENT & FUNDING A VENTURECAPITAL FUND IN PRINCETON NJ EARLY ALLIANCES WITH BIG CORPORATIONS PROVIDE A SMALL COMPANY WITH VALIDATION AND ACCESS TO MARKETS WORTH MILLIONS IF A COMPANY HAD TO DO IT ALL BY ITSELF DR WARREN ADDS BROADBAND STARTED SEEKING BIG COMPANY ENDORSEMENTS WITHIN A FEW MONTHS OF ITS LAUNCH BROADBAND BEGAN AS A RESEARCH AND DEVELOPMENT PROGRAM AT SIECOR CORP A HICKORY SC MAKER OF FIBEROPTIC PRODUCTS IN 1988 THE DEVELOPMENT TEAM LED BY SALIM BHATIA A SALES EXECUTIVE PURCHASED THE RIGHTS TO THE PROJECT AND FORMED AN INDEPENDENT COMPANY THE TEAM WON BACKING FROM MAJOR VENTURECAPITAL FIRMS INCLUDING BOSTON'S TA ASSOCIATES AND ACCEL PARTNERS IN PRINCETON NJ SEVERAL BIG INSURERS INCLUDING SEARS ROEBUCK & CO'S ALLSTATE INSURANCE CO AND ST PAUL COS'S ST PAUL FIRE & MARINE INSURANCE CO ALSO INVESTED THROUGH THEIR VENTURECAPITAL FUNDS SO FAR BROADBAND HAS RECEIVED 425 MILLION IN EQUITY FINANCING IN LATE 1988 BROADBAND OFFICIALS SUBMITTED THEIR DEVELOPMENT PLANS TO TELEPHONE COMPANIES ITS POTENTIAL CUSTOMERS LABORATORY EVALUATIONS AND FIELD TRIALS INVOLVING BELL ATLANTIC SOON FOLLOWED AS HIGHTECH TELECOMMUNICATIONS EXPANDS THERE ARE TREMENDOUS OPPORTUNITIES FOR SMALLTECHNOLOGY PROVIDERS SAYS KEN PITT A BELL ATLANTIC SPOKESMAN IDEAS FOR NEW PRODUCTS SERVICES AND TECHNOLOGIES THAT HELP DIFFERENTIATE ONE PROVIDER FROM ANOTHER WILL BE IN GREAT DEMAND HE PREDICTS BUT TO EXPLOIT THIS BURGEONING FIELD EFFECTIVELY SMALL COMPANIES NEED TO WORK WITH THE BIGSYSTEM DEVELOPER AND MANUFACTURERS FROM A VERY EARLY STAGE MAJOR PLAYERS LIKE BELL ATLANTIC AND AMP HAVE GOOD REASON TO BE EXCITED ABOUT A TINY UNKNOWN SUCH AS BROADBAND CABLE OPERATORS AND TELEPHONE COMPANIES ARE WORKING INTENSELY TO INSTALL THE FIBEROPTIC LINES NEEDED FOR VIDEOONDEMAND SERVICES SUBSCRIBERS WOULD BE ABLE TO ORDER TV PROGRAMS AND MOVIES AS WELL AS CONDUCT INTERACTIVE SHOPPING AND BANKING BROADBAND HAS DEVELOPED TECHNOLOGY TO HELP MANAGE THE DISTRIBUTION SYSTEM FOR SUCH SERVICES THE CONCERN SAYS ITS TECHNOLOGY WILL ENABLE PHONE COMPANIES TO DELIVER AS MANY AS 1500 VIDEO CHANNELS THREE TIMES THE NUMBER THAT CABLE COMPANIES ARE PROMISING SOME CRITICS ESTIMATE THAT IT COULD COST TELEPHONE COMPANIES 1500 FOR EACH SUBSCRIBER TO PROVIDE THAT LEVEL OF SERVICE BUT BROADBAND SAYS IT CAN MAKE SUCH SERVICES POSSIBLE FOR 430 A SUBSCRIBER TO A PHONE COMPANY WITH AS MANY AS ONE MILLION SUBSCRIBERS THAT WOULD BE SUBSTANTIALLY LESS THAN IT WOULD COST A CABLE OPERATOR TO IMPROVE ITS SYSTEM IN THE SAME WAY THE MAIN REASON BROADBAND SAYS IS ITS ABILITY TO ASSIGN AS FEW AS 24 HOMES TO A SINGLE SWITCH THE DEVICE THAT DIRECTS PROGRAMMING TO INDIVIDUAL HOMES BECAUSE THE SMALLER DEVICE REQUIRES FEWER ELECTRONIC CONTROLS IT IS LESS EXPENSIVE THAN USING A HUGE SWITCH FOR SAY 1000 HOMES MONEY IN INFRASTRUCTURE IF THE GLAMOR IS IN THE TALK OF DIGITAL HIGHWAYS THE MONEY IS IN THE INFRASTRUCTURE SAYS RICHARD SHAFFER PUBLISHER OF COMPUTERLETTER A NEWSLETTER IN NEW YORK BEFORE ANY CABLE OR PHONE COMPANY CAN ACTUALLY DELIVER ITS PROMISED MYRIAD OF SERVICES WHAT HAS TO BE BUILT IS THE DISTRIBUTION SYSTEM MR SHAFFER NOTES AND IN THIS ARENA BROADBAND IS WELLPOSITIONED HE SAYS DESPITE ITS PREPONDERANCE OF CAPITAL BROADBAND HAS FOCUSED ON BEING A LOWCOST DEVELOPER OF THE TECHNOLOGY WELLHEELED COMPETITORS SUCH AS RAYNET A RAYCHEM CORP SUBSIDIARY REPORTEDLY HAVE SPENT HUNDREDS OF MILLIONS ON DEVELOPMENT BROADBAND WHICH HAS 162 EMPLOYEES IS TRYING TO KEEP A TIGHT REIN ON COSTS OFFICIALS HAVE SAID COMPANIES DON'T JUST WANT A TECHNOLOGY SOLUTION THEY WANT A COSTEFFICIENT TECHNOLOGY SOLUTION SAID MR BHATIA NOW PRESIDENT AND CHIEF EXECUTIVE OFFICER IN AN INTERVIEW LAST YEAR YET EVEN WITH A POTENTIALLY LUCRATIVE BELL ATLANTIC CONTRACT BROADBAND'S OFFERING PROSPECTUS CONCEDES THAT THE ROAD AHEAD MAY BE ROCKY FOR ALL THE HYPE ABOUT INTERACTIVE TELEVISION HIGHWAYS AND HUNDREDS OF CHANNELS LITTLE PRODUCT EXISTS AND THE FIRM'S TECHNOLOGY COULD BE STILLBORN NONETHELESS BROADBAND'S APPROACH TO STRATEGIC ALLIANCES PROBABLY WILL INVITE IMITATION BY COMPANIES BIG AND SMALL MOST MAJOR CORPORATIONS RECOGNIZE THAT MUCH OF THE TECHNOLOGY TO ENSURE THEIR FUTURE WON'T COME FROM WITHIN DR WARREN OBSERVES THEY CAN'T RELY ON INTERNAL R&D THE WAY THEY USED TO SO THEY TOO ARE MORE EAGER TO DO DEALS HE ADDS 9306160023 930616 MERGER ACTIVITY IS UP 29 THIS YEAR ON FLURRY OF TELECOMMUNICATIONS DEALS BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL IT'S RUSH HOUR ON THE INFORMATION SUPERHIGHWAY AND THAT IS FUELING THE FIRST BIG INCREASE IN US MERGERANDACQUISITION ACTIVITY IN FIVE YEARS THIS YEAR HAS SEEN A FLURRY OF DEALS IN WHICH TELECOMMUNICATIONS COMPANIES AND CABLETV CONCERNS HAVE BEEN SCRAMBLING TO FORM ALLIANCES FOR LONGTERM GROWTH AGAINST A BACKDROP OF RAPID EXPECTED TECHNOLOGICAL CHANGE AS A RESULT THE TOTAL DOLLAR VOLUME OF ANNOUNCED US DEALS THROUGH FRIDAY HAS RISEN 29 THIS YEAR FROM THE SAME PERIOD OF 1992 ACCORDING TO SECURITIES DATA CO THE MOST RECENT TIME ANNOUNCED DEAL ACTIVITY ROSE FOR A FULL YEAR WAS 1988 BUT THIS YEAR'S ACTIVITY 681 BILLION OF DEALS ANNOUNCED COUNTING MINORITY STAKES IS RUNNING AT ONLY ABOUT HALF OF THE 1988 RATE IN TWO OF THIS YEAR'S LARGEST DEALS BRITISH TELECOMMUNICATIONS PLC IS PAYING 43 BILLION TO ACQUIRE A 20 STAKE IN MCI COMMUNICATIONS CORP THE LONGDISTANCE CARRIER U S WEST INC THE REGIONAL PHONE COMPANY IS SHELLING OUT 25 BILLION FOR A 255 STAKE IN AN ENTERTAINMENT SUBSIDIARY OF TIME WARNER INC WITH HOLDINGS IN MOVIES AND CABLE TV THERE IS A CONSIDERABLE AMOUNT OF ACTIVITY IN COMMUNICATIONS TELECOMMUNICATIONS THE WHOLE INFORMATION SERVICES AREA AND I THINK THAT IS GOING TO CONTINUE IN A VERY DRAMATIC WAY SAYS RICHARD BEATTIE CHAIRMAN OF THE EXECUTIVE COMMITTEE OF THE LAW FIRM SIMPSON THACHER & BARTLETT WHAT'S HAPPENING IS JUST A CONVERGENCE OF THE TECHNOLOGICAL CHANGES AND PEOPLE COMING TO REALIZE THAT INFORMATION SERVICES AND COMMUNICATIONS ARE GOING TO OCCUR IN A MUCH DIFFERENT WAY SAID MR BEATTIE WHO REPRESENTED MCI IN THE BRITISH TELECOM DEAL HE ALSO REPRESENTED NEW YORK TIMES CO IN ITS PROPOSED 106 BILLION ACQUISITION OF AFFILIATED PUBLICATIONS INC ANNOUNCED FRIDAY RICHARD FISHER CHAIRMAN OF MORGAN STANLEY GROUP INC TOLD REPORTERS AFTER THE FIRM'S ANNUAL MEETING THIS PAST WEEK THAT HIS FIRM IS BUSIER IN MERGER ACTIVITY THAN IT HAS BEEN IN THREE YEARS IT'S NOT THE FEVERISH PITCH OF THE 1980S BUT IT'S BEEN REALLY GOOD HE SAID MCI CHAIRMAN BERT C ROBERTS JR SPEAKING AT A LUNCH YESTERDAY WITH EDITORS AND REPORTERS OF THIS NEWSPAPER SAID INFORMATION SERVICES AND TELECOMMUNICATIONS ARE BEING REDEFINED AS SOMETHING BROADER THAN WHAT WE KNOW IT AS CABLE WIRELESS AND WIRELINE COMMUNICATIONS ARE ALL GOING TO START TO INTERACT IN DIFFERENT WAYS MR ROBERTS SAID IT'S ALL GOING TO BLEND TOGETHER IN TERMS OF THE WAY YOU DO THINGS AND WE'RE TRYING TO POSITION MCI IN THE MIDDLE OF THAT SAID JACK GRUBMAN A TELECOMMUNICATIONS ANALYST AT PAINEWEBBER INC IT'S IRONIC THAT WHAT'S BEEN CONSIDERED A BORING UTILITY INDUSTRY HAS BEEN THE HOTTEST DEAL AREA FOR THE LAST THREE YEARS THE 79 BILLION ACQUISITION OF CORP BY AMERICAN TELEPHONE & TELEGRAPH CO AND THE 62 BILLION MERGER OF GTE CORP AND CONTEL CORP WERE THE TWO LARGEST US DEALS OF 1991 AND SPRINT CORP'S 3 BILLION ACQUISITION OF CENTEL CORP WAS ONE OF THE LARGEST OF 1992 MR GRUBMAN SAYS GLOBAL TELECOMMUNICATIONS TRAFFIC WITH 400 BILLION IN CURRENT ANNUAL REVENUES HAS BEEN GROWING THREE TO FOUR TIMES AS FAST AS THE WORLD ECONOMY FOR THE PAST 50 YEARS AND THE INDUSTRY IS NOW UNDERGOING RAPID REGULATORY TECHNOLOGICAL AND MARKET CHANGES ONE OF THE CATALYSTS FOR THE LATEST SPATE OF DEALS WAS AN ANNOUNCEMENT IN NOVEMBER THAT AT&T IS NEGOTIATING TO ACQUIRE A 33 STAKE IN MCCAW CELLULAR COMMUNICATIONS INC FOR 373 BILLION POSITIONING THE LONGDISTANCE GIANT TO OFFER LOCAL PHONE SERVICES EVENTUALLY MR ROBERTS OF MCI SAID THE PROPOSED AT&TMCCAW ALLIANCE HAS SPARKED A GREATER WILLINGNESS BY THE SEVEN REGIONAL BELL OPERATING COMPANIES TO CONSIDER ALLIANCES OF THEIR OWN TO COUNTER WHAT THEY SEE AS A REAL THREAT BY AT&T TO THEIR LOCAL PHONE SERVICE MCI HE SAID MAY FORGE COMPETING CELLULAR ALLIANCES WITH SOME OF THOSE LOCAL PHONE COMPANIES MR ROBERTS ADDED THAT IF THE AT&TMCCAW TALKS WHICH SO FAR HAVE FAILED TO PRODUCE A DEFINITIVE AGREEMENT FALTER OR COLLAPSE MCI MIGHT BE WILLING TO USE SOME PROCEEDS OF THE BRITISH TELECOM STOCK SALE TO INVEST IN MCCAW BUT A MCCAW SPOKESMAN SAID THE TALKS AREN'T LIKELY TO FAIL BECAUSE MCCAW CHAIRMAN CRAIG MCCAW MET WITH AT&T CHAIRMAN ROBERT ALLEN YESTERDAY AND THE TALKS ARE MAKING GOOD PROGRESS NOT LIKE THE '80S THE CURRENT DEALS ARE DIFFERENT THAN THE DEBTFINANCED MEGADEALS OF THE LATE 1980S WITH THE STOCK MARKET TRADING NEAR RECORD LEVELS MANY ACQUIRERS ARE USING THEIR OWN STOCK AS FINANCING SEVERAL DEALS INCLUDING THE INVESTMENTS IN MCI TIME WARNER AND MCCAW ARE FOR PARTIAL STAKES LEAVING TAKEOVER STOCK TRADERS WITHOUT THE CHANCE TO CASH IN ON PREMIUM OFFERS FOR ALL OF THE COMPANIES' SHARES OUTSTANDING FOR EXAMPLE THE LARGEST 1993 US ACQUISITION TO DATE INVOLVES AN EXCHANGE OF 32 BILLION OF STOCK BY COLUMBIA HOSPITAL CORP FOR THE SHARES OF GALEN HEALTH CARE INC FREDERIC SEEGAL COHEAD OF CORPORATE FINANCE AT SALOMON INC SAYS THAT STOCKFORSTOCK ACQUISITIONS CAN SOFTEN ACQUIRERS' PAIN FROM PAYING HIGH MULTIPLES OF EARNINGS OR BOOK VALUE JEFFREY SECHREST HEAD OF MERGERS AND ACQUISITIONS AT THE LEHMAN BROTHERS UNIT OF AMERICAN EXPRESS CO SAID MANY CLIENTS THAT ALREADY CUT COSTS DURING THE RECENT ECONOMIC SLOWDOWN ARE NOW LOOKING TO DO ADDON ACQUISITIONS TO IMPROVE THEIR OWN STRATEGIC POSITION HE ADDED THAT LEVERAGEDBUYOUT FIRMS ARE BACK IN THE MARKET HELPED BY THE STRONGER MARKET FOR JUNKBOND FINANCING DESPITE THE PICKUP IN ACTIVITY MANY INVESTMENT BANKERS ARE SKEPTICAL THAT BOOM TIMES LIE AHEAD FOR THE MERGER BUSINESS IT FEELS AS IF IT'S BOTTOMED OUT BUT I THINK IT'S TOO EARLY AND TOO DIFFICULT TO SAY IT'S GOING UP AGAIN SAYS STEVEN RATTNER COHEAD OF INVESTMENT BANKING AT LAZARD FRERES & CO 9306160022 930616 POLITICS & POLICY ADMINISTRATION CRITICS SEARCH MEMBERSHIP LIST OF HEALTHCARE TASK FORCE FOR GOLDBERG RUBE BY RICK WARTZMAN AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON FLOATING AROUND WASHINGTON THESE DAYS IS A FLOW CHART A CONVOLUTED MASS OF BOXES CIRCLES ARROWS AND CRISSCROSSING LINES THAT A STAFF MEMBER AT THE OFFICE OF MANAGEMENT AND BUDGET PUT TOGETHER EARLY THIS YEAR TO SHOW WHAT A NEW HEALTH SYSTEM MIGHT LOOK LIKE ADMINISTRATION OFFICIALS ANGRY THAT THE DOCUMENT HAS GOTTEN OUT DISMISS IT AS THE WORK OF A LOWLEVEL OFFICIAL AND INSIST THAT IT BEARS NO RELEVANCE TO THE PLAN THE WHITE HOUSE IS FASHIONING FOR MANY THOUGH THE CHART HAS BECOME A SYMBOL OF A HEALTH PLAN THAT COULD COLLAPSE UNDER ITS OWN COMPLEXITY IN AN INTERVIEW LAST WEEK WITH NBC HILLARY RODHAM CLINTON SAID SHE WANTS THE HEALTHCARE PROGRAM TO BE UNDERSTANDABLE AND WORKABLE FOR REAL AMERICANS BUT SOME DOUBT THAT WILL BE EASY GIVEN THE BYZANTINE STRUCTURE THE CLINTON SYSTEM SEEMS TO BE TAKING ON THESE PROGRAMS ARE SO COMPLEX THAT PEOPLE CAN'T UNDERSTAND THEM SAYS ROBERT BLENDON A HARVARD UNIVERSITY HEALTHPOLICY PROFESSOR THE CONFUSION ISN'T SURPRISING AS IT STANDS THE PRESIDENT'S PROPOSAL WOULD HAVE EACH STATE SET UP BIG INSURANCE PURCHASING COOPERATIVES THAT WOULD TRACK DOWN AND COLLECT MONEY FROM EVERY INDIVIDUAL AND EMPLOYER IN A REGION AND PAY THE MONEY TO ALL SORTS OF HEALTH PLANS BUT HE MAY ALLOW LARGE COMPANIES TO OPT OUT OF THE COOPERATIVES IN WHICH CASE THEY'D STILL BE REQUIRED TO BUY A GOVERNMENTMANDATED PACKAGE OF HEALTH BENEFITS SUCH COMPANIES WOULD BE ALLOWED TO ADD MORE BENEFITS IF THEY'RE WILLING TO PAY TAXES ON THE EXCESS MEANWHILE THE WHOLE THING COULD BE FUNDED BY A PAYROLL TAX THAT COULD VARY FROM STATE TO STATE FROM COOPERATIVE TO COOPERATIVE AND AT LEAST DURING A PHASEIN PERIOD FROM COMPANY TO COMPANY THE DANGER INHERENT IN SUCH A COMPLEX PLAN PROFESSOR BLENDON SAYS IS THAT IT PROVIDES AN OPENING FOR THE SPECIAL INTERESTS DETERMINED TO CHALLENGE THE ADMINISTRATION AN OPPONENT CAN MAKE ANY ACCUSATION HE WANTS THAT THE NEW SYSTEM WILL LEAD TO LONG WAITING LINES HIGHER TAXES A DISRUPTION IN SERVICES AND PEOPLE HAVE NO REFERENCE POINT TO SEE IF THESE THINGS ARE TRUE HE SAYS PRESIDENT CLINTON'S ALLIES CLEARLY WORRY ABOUT THIS PROSPECT ILLINOIS DEMOCRATIC REP DAN ROSTENKOWSKI THE CHAIRMAN OF THE WAYS AND MEANS COMMITTEE HAS SAID HE FEARS THE CLINTON HEALTH PLAN IS STARTING TO LOOK LIKE THE DOMESTIC EQUIVALENT OF STAR WARS SOME ASPECTS OF THE CLINTON HEALTH SYSTEM WILL SURELY BE SIMPLER THAN WHAT EXISTS NOW A NUMBER OF STEPS FOR EXAMPLE WILL BE PROPOSED TO LESSEN THE RED TAPE FOR BOTH PATIENTS AND MEDICALSERVICE PROVIDERS AND SAVE MONEY BY CUTTING OVERHEAD THE ADMINISTRATION'S CHALLENGE IS TO GET PAST THE TECHNICAL MUMBO JUMBO AND CONCENTRATE ON A HANDFUL OF SELLING POINTS NO ONE WOULD EVER AGAIN BE IN DANGER OF LOSING INSURANCE COVERAGE AND A NEW HEALTH SYSTEM SHOULD HELP CONTROL MEDICAL COSTS WHICH THREATEN TO SAP THE ECONOMY SEVERELY WHEN SOMEONE GOES TO BUY A CAR WHAT THEY WANT TO KNOW IS IF IT CAN SEAT SIX PEOPLE AND THAT IT IS SAFE ON THE ROADS MOST BUYERS DON'T WANT TO KNOW THE CAPACITY OF THE FUEL INJECTOR SAYS ARNOLD BENNETT OF THE CONSUMER GROUP FAMILIES USA WHO IS HELPING TO REFINE THE ADMINISTRATION'S MESSAGE WHEN IT COMES TO THE CLINTON HEALTH PLAN HE SAYS THERE WILL BE A LOT OF DETAILS THAT WILL BE EXPLAINED FOR PEOPLE WHO WANT TO KNOW THEM BUT WHAT IS MOST IMPORTANT IS TO PUT ALL THAT STUFF INTO THE CONTEXT OF THE LARGER ISSUES STILL CRITICS WONDER IF THE ADMINISTRATION IS MAKING THINGS MORE COMPLICATED THAN THEY NEED TO BE THEY NOTE THAT MANY OF THE 500 EXPERTS BROUGHT IN TO ASSIST THE WHITE HOUSE'S HEALTHCARE TASK FORCE WERE BUREAUCRATS AND ACADEMICS THEY'RE A LITTLE STARRYEYED A LOT OF THEORETICIANS SAYS BRUCE MILLER THE CHAIRMAN OF CORESOURCE INC WHICH DESIGNS AND IMPLEMENTS HEALTHCARE AND WORKERS' COMPENSATION PROGRAMS FOR COMPANIES EVEN THE MOST BASIC TERMINOLOGY OF THE CLINTON HEALTH PLAN SEEMS TO ELUDE THE PUBLIC A RECENT NATIONWIDE POLL CONDUCTED FOR THE ROBERT WOOD JOHNSON FOUNDATION FOUND THAT 60 OF THOSE SURVEYED HADN'T EVER HEARD OF MANAGED COMPETITION THE BLEND OF FREEMARKET FORCES AND GOVERNMENT REGULATION THAT WILL BE A CORNERSTONE OF THE PLAN ANOTHER 16 OF THOSE POLLED HAD HEARD OF MANAGED COMPETITION BUT SAID THEY REALLY DIDN'T KNOW WHAT IT MEANS ONE OF THE REASONS THE ADMINISTRATION'S REMEDIES TEND TO BE SO KNOTTY IS THAT THE PROBLEMS ARE HEALTH CARE ACCOUNTS FOR ONESEVENTH OF THE NATION'S ECONOMY AND TRYING TO FIX ANY ONE PIECE TENDS TO CREATE DISTORTIONS ELSEWHERE IN THE SYSTEM PEOPLE UNDERSTAND THAT THIS IS A COMPLICATED ISSUE SAYS PAUL BEGALA A TOP WHITE HOUSE POLITICAL ADVISER THEY WOULD RECOIL AT ANY SIMPLISTIC SOLUTION ONE THING THE WHITE HOUSE HAS GOING FOR IT IS THAT PAUL STARR A PULITZER PRIZEWINNING AUTHOR HAS BEEN PUT IN CHARGE OF WRITING THE TOME THAT THE ADMINISTRATION WILL HAND OUT TO THE PRESS AND PUBLIC OUTLINING ITS HEALTH PROPOSALS MR STARR HAS A WAY OF TAKING THE MOST ARCANE ISSUES AND MAKING THEM CRYSTAL CLEAR DAVID GERGEN THE NEW COUNSELOR TO THE PRESIDENT IS ALSO SENSITIVE TO HOW COMPLEX THE SUBJECT OF HEALTHCARE REFORM IS SEVERAL WEEKS BEFORE JOINING THE WHITE HOUSE STAFF THE FORMER MAGAZINE EDITOR MODERATED A PANEL DISCUSSION ON HEALTH CARE AIMED AT JOURNALISTS THERE ARE A NUMBER OF US WHO FEEL WE DON'T HAVE THE GRASP OF SOME OF THE ISSUES THAT WE OUGHT TO HAVE HE CONCEDED 9306160021 930616 HEINZ'S EARNINGS PLUNGED 52 IN ITS 4TH PERIOD WRITEOFF FOR 8 STAFF CUT DEPRESSED NET INCOME OPERATING PROFIT ROSE BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PITTSBURGH HJ HEINZ CO SAID FISCAL FOURTHQUARTER NET INCOME PLUNGED 52 AFTER A BIG RESTRUCTURING CHARGE REFLECTING ITS EFFORTS TO SLASH COSTS IN THE FACE OF FLAT PRICING THE BULK OF THE CHARGE OF 111 MILLION OR 43 CENTS A SHARE REFLECTS PLANS UNDER WAY TO CUT THE COMPANY'S WORLDWIDE WORK FORCE BY 8 IT ALSO INCLUDES CONSOLIDATING BILLING COLLECTION AND DISTRIBUTION AND COMBINING PET FOOD AND CANNED TUNA OPERATIONS EARNINGS WERE DEPRESSED BY ANOTHER CHARGE OF 99 MILLION OR FOUR CENTS A SHARE RELATED TO AN ACCOUNTING CHANGE FOR THE QUARTER ENDED APRIL 28 HEINZ EARNED 697 MILLION OR 27 CENTS A SHARE COMPARED WITH 1457 MILLION OR 56 CENTS A SHARE A YEAR EARLIER OPERATING EARNINGS JUMPED 32 TO 1923 MILLION OR 74 CENTS A SHARE FROM 1457 MILLION SALES ROSE 89 TO 203 BILLION FROM 187 BILLION REFLECTING THE ACQUISITION OF WATTIE'S LTD IN NEW ZEALAND AND A 9 INCREASE IN UNIT VOLUMES PARTICULARLY IN STARKIST TUNA WEIGHT WATCHERS FROZEN ENTREES AND OREIDA FROZEN POTATOES WALL STREET ATTRIBUTED MUCH OF THE COMPANY'S IMPROVED OPERATING EARNINGS TO A LOWER TAX RATE 12 IN THE FOURTH QUARTER VS 25 A YEAR EARLIER AND 29 IN THE FULL YEAR VS 35 THAT HEINZ SAID RESULTED FROM TAX BENEFITS OVERSEAS IT IS VERY CLEAR THE COMPANY DID NOT MANAGE TO DELIVER WITHOUT BEING VERY AGGRESSIVE ON THE TAX RATE SAYS NOMI GHEZ AN ANALYST WITH GOLDMAN SACHS & CO WHO RATES HEINZ A MARKET PERFORMER SHE SAYS SHE'S MAINTAINING HER 260 A SHARE ESTIMATE FOR FISCAL 1994 BUT WITH LESS CONFIDENCE AFTER THE ANNOUNCEMENT YESTERDAY HEINZ SHARES FELL 625 CENTS TO 3675 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FOR THE YEAR HEINZ NET INCOME FELL 38 TO 3963 MILLION OR 153 A SHARE INCLUDING RESTRUCTURING CHARGES OF 45 CENTS A SHARE AND ACCOUNTINGRELATED CHARGES OF 55 CENTS A SHARE A YEAR EARLIER THE COMPANY EARNED 6383 MILLION OR 240 A SHARE SALES ROSE 79 TO 71 BILLION FROM 658 BILLION A YEAR EARLIER HEINZ CHAIRMAN ANTHONY JF O'REILLY WHO REVISED HIS FULLYEAR OPERATING EARNINGS FORECAST IN MARCH TO 250 A SHARE FROM 260 NOTES THAT THE COMPANY CAME IN AT 253 SLIGHTLY IN EXCESS OF OUR RECENT FORECAST THE COMPANY HAS PRODUCED RECORD SALES AND ATTAINED RECORD MARKET SHARES IN ALMOST ALL MAJOR CATEGORIES BOTH DOMESTICALLY AND ABROAD ANALYSTS SAY THE COMPANY HAD TO MAKE SOME RESTRUCTURING MOVES TO ACHIEVE EARNINGS GROWTH AMID FLAT CONSUMER PRICES IN THE PAST TWO YEARS THE 8 WORK FORCE REDUCTION WHICH AFFECTS ABOUT 3000 OF THE COMPANY'S 40000 WORKERS AND IS TO BE COMPLETED IN 12 MONTHS COMES ON THE HEELS OF A 10 WORK FORCE REDUCTION ANNOUNCED IN SEPTEMBER 1991 THE RESTRUCTURING SIMPLY REFLECTS ONE FACT IF YOU CAN'T RAISE YOUR SELLING PRICES YOU'VE GOT TO LOWER YOUR COSTS SAYS JOHN M MCMILLIN ANALYST WITH PRUDENTIAL SECURITIES INC CONCERN ABOUT PRICING PROBLEMS PROMPTED SOME ANALYSTS TO REDUCE THEIR FISCAL 1994 EARNINGS FORECASTS ON BALANCE THE SITUATION IS NOT GOOD SAYS WILLIAM MAGUIRE AN ANALYST WITH MERRILL LYNCH & CO WHO LOWERED HIS ESTIMATE TO 270 A SHARE FROM 275 NOTING THAT HEINZ EXPECTS TO RETURN TO AN APPROXIMATELY 35 TAX RATE IN THE NEXT 12 MONTHS WILLIAM LEACH OF DONALDSON LUFKIN & JENRETTE SECURITIES CORP LOWERED HIS ESTIMATE TO 255 FROM 260 A SHARE BUT RATES THE STOCK MODERATELY ATTRACTIVE HE SAYS BECAUSE THE STOCK'S SO CHEAP HEINZ PLAYED DOWN ANALYSTS' CONCERNS SAYING PRICES WILL RISE 2 IN FISCAL 1994 AND VOLUMES WILL GROW 4 TO 5 THERE WILL BE FEWER PROMOTIONS SUCH AS COUPONS AND ALLOWANCES FOR RETAILERS AND MORE MEDIA ADVERTISING 9306160020 930616 CEO'S ON THE ECONOMY THESE RESTRICTIONS DO NOT COMPUTE BY SCOTT MCNEALY THE US GOVERNMENT'S RESTRICTIONS ON THE EXPORT OF COMPUTERS FOR WHAT IT DEEMS NATIONAL SECURITY REASONS ARE ACTUALLY HARMING US ECONOMIC SECURITY WHILE DOING VERY LITTLE TO PROTECT THE COUNTRY'S INTERESTS ITS DEFINITION OF SUPERCOMPUTERS THAT MUST UNDERGO INTENSE LICENSING SCRUTINY WHEN SOLD TO CERTAIN COUNTRIES IS SO OUT OF DATE THAT IT INCLUDES STANDARD WORKSTATION COMPUTERS MASSPRODUCED BY MY COMPANY AND OTHERS THAT PERFORM AT LESS THAN 1 THE SPEED OF TODAY'S TOPOFTHELINE SUPERCOMPUTING MACHINES THESE WORKSTATION COMPUTERS ARE A COMMON COMMODITY NOT A HIGHTECH THREAT TO NATIONAL SECURITY WITH INDUSTRY SALES THAT ARE EXPECTED TO DOUBLE FROM 10 BILLION IN 1992 TO 20 BILLION BY 1997 THEY ARE HOWEVER A KEY TO MAINTAINING US ECONOMIC SECURITY TO GET AN EXPORT LICENSE FOR SAY BRAZIL WE'RE REQUIRED TO FILL OUT DETAILED APPLICATIONS AND SUPPLY TIMECONSUMING DOCUMENTS THAT ARE THEN REVIEWED TYPICALLY FOR MONTHS BY A LIST OF US GOVERNMENT AGENCIES EVEN IF THE LICENSE IS GRANTED WE MAY BE REQUIRED TO MEET ANYWHERE FROM ONE TO 34 DIFFERENT STIPULATIONS FOR INSTANCE WE MIGHT HAVE TO ENSURE THAT A CUSTOMER BUYING THIS STANDARD COMPUTER USES IT ONLY INSIDE A SECURE ROOM UNDER 24HOUR GUARD WITH CONSTANT CHECKS OF PASSWORD LOCKS ETC THIS POLICY MAY HAVE CAUSED COMPARATIVELY LITTLE FINANCIAL HARDSHIP WHEN MACHINES OF THIS CALIBER WERE RARITIES COSTING MILLIONS OF DOLLARS EACH BUT THE MACHINES SUN EXPORTS TODAY ARE SOLD IN VOLUME AND AT A FRACTION OF THAT PRICE WE EXPECT TO EXPORT THOUSANDS IN THE NEXT SIX MONTHS FOR CUSTOMERS THE ADDED EXPENSE FOR SECURITY OR OTHER ARBITRARY REQUIREMENTS CAN BOOST THE COST TO MANY TIMES THE ORIGINAL PURCHASE PRICE A HIDDEN COST OF THIS MAGNITUDE WILL INEVITABLY PERSUADE SOME PROSPECTIVE BUYERS TO LOOK ELSEWHERE CURRENTLY ONLY THE US RESTRICTS WORKSTATION COMPUTERS WHILE JAPAN ALSO SUBSCRIBES TO THESE EXPORT CONTROLS THROUGH A BILATERAL AGREEMENT WITH THE US IT IS BEHIND THE CURVE IN DEVELOPING THE MACHINES BUT COMPETITORS IN TAIWAN AND OTHER COUNTRIES ARE UNENCUMBERED BY THE RESTRICTIONS AND ARE ALREADY SHIPPING CLONES OF HIGHPOWERED WORKSTATIONS THE COMMERCE DEPARTMENT'S BUREAU OF EXPORT ADMINISTRATION IN CHARGE OF ENFORCING THE REGULATIONS SEEMS SYMPATHETIC TO US INDUSTRY'S PLIGHT BUT IT IS CURRENTLY RUDDERLESS SINCE THE CLINTON ADMINISTRATION HAS YET TO APPOINT AN UNDERSECRETARY TO HEAD THE BUREAU AND THE BUREAU MUST DEFER TO THE DEFENSE DEPARTMENT AND OTHER AGENCIES THAT WILL CONTINUE TO PUSH FOR STRICT ENFORCEMENT OF THESE ANACHRONISTIC LAWS UNTIL THEY HEAR OTHERWISE FROM THE COMMANDER IN CHIEF UNFORTUNATELY ON A RECENT VISIT TO SILICON VALLEY PRESIDENT CLINTON WENT ON RECORD SUPPORTING THE GOVERNMENT'S RESTRICTIONS THE ADMINISTRATION IS CONCERNED THAT A THIRD WORLD OR RADICAL NATION MIGHT GAIN ACCESS TO THIS TECHNOLOGY AND USE IT TO DESIGN NUCLEAR WEAPONS LET'S EXAMINE THE FAULTS IN THAT LOGIC THE NUCLEAR SUPPLIER COUNTRY GROUP OF WHICH THE US IS A MEMBER HAS CONCLUDED THAT COMPUTERS ARE NOT SERIOUSLY ACCELERATING THE PRODUCTION OF NUCLEAR WEAPONS THE US IS THE ONLY MEMBER OF THAT GROUP TO DISAGREE AND UNILATERALLY RESTRICT COMPUTER SALES CURRENT LAWS DO NOT RESTRICT THE SALE OF MICROPROCESSORS THE BRAINS OF THE COMPUTER TAIWANESE KOREAN AND OTHER MANUFACTURERS HAVE LICENSES TO OBTAIN THESE CHIPS AND ARE ABLE TO CLONE SUN WORKSTATIONS AND SELL THEM IN AREAS THAT ARE OFFLIMITS TO SUN CURRENT US POLICY DOES NOT RESTRICT HIGHLEVEL TECHNOLOGY IT SIMPLY HAMPERS US COMPANIES FROM COMPETING IN THE GLOBAL MARKETPLACE BUDDING DEMOCRACIES NEED MORE THAN JUST US TAX DOLLARS AND GRAIN CREDITS IF THEY ARE TO BE SUCCESSFUL IN THE TRANSITION TO FREEMARKET ECONOMIES THEY DESPERATELY NEED OUR TECHNOLOGY RUSSIA FOR INSTANCE IS ATTEMPTING TO REVAMP ENTIRE INDUSTRIES AND SUN IS WORKING CLOSELY WITH ITS OIL AND GAS EXPLORATION BANKING AND AUTO AND TRUCK MANUFACTURING SECTORS WHICH NEED OUR COMPUTERS TO MODERNIZE THE CLINTON ADMINISTRATION AND CONGRESS HAVE EXPRESSED THEIR INTENTIONS TO EXAMINE THE SITUATION BUT AT THE RATE THEY ARE GOING THIS COULD TAKE 12 TO 18 MONTHS A FULL PRODUCT CYCLE MORE THAN 70 OF 1991 REVENUE FOR THE COMPUTER INDUSTRY WAS DERIVED FROM PRODUCTS THAT DID NOT EXIST TWO YEARS EARLIER MISS ONE DEVELOPMENT CYCLE AND YOU ARE SERIOUSLY HURT MISS TWO AND YOU ARE MORTALLY WOUNDED LOSING THIS MOMENTUM AFFECTS MORE THAN SUN AND ITS COMPETITORS IT MEANS LOST JOBS FOR US WORKERS AND LOST TAX REVENUES IT MEANS LESS FUNDING FOR THE RESEARCH AND DEVELOPMENT THAT CREATE FUTURE PRODUCTS THAT CREATE NEW JOBS IN SHORT THIS POLICY IS COSTING THE US ITS ECONOMIC VITALITY AS PRESIDENT CLINTON SAID MANY TIMES ON THE CAMPAIGN TRAIL ECONOMIC SECURITY IS AS IMPORTANT AS MILITARY SECURITY THE TWO ARE INTERTWINED KEY TO MAINTAINING THIS SECURITY IS A HEALTHY HIGHTECH SECTOR THAT IS ALLOWED TO COMPETITIVELY EXPORT ITS PRODUCTS KEEP IN MIND THAT THE WORKSTATION COMPUTER MARKET IS NO SMALL INDUSTRY AND IS EXPECTED TO GROW THE US COMPUTER INDUSTRY AS A WHOLE CONTRIBUTES 5 OF THE COUNTRY'S GROSS DOMESTIC PRODUCT SELLING 60 OF ITS GOODS OUTSIDE NORTH AMERICA OR 74 BILLION ANNUALLY THAT IS A SIGNIFICANT DENT IN THE TRADE DEFICIT JOBS IN INDUSTRIES WITH HIGH EXPORTS BY THE WAY PAY AN AVERAGE OF 3500 A YEAR MORE THAN NONEXPORT JOBS ADDING SIGNIFICANTLY TO THE QUALITY OF LIFE HERE AT HOME BY QUICKLY EASING THE EXPORT RESTRICTIONS THE CLINTON ADMINISTRATION CAN DO MORE FOR THIS CRITICAL INDUSTRY THAN ALL ITS PROPOSED TAX CREDITS COMBINED IT MUST RAISE THE DEFINITION OF A SUPERCOMPUTER TO A MEANINGFUL LEVEL EFFECTIVELY ELIMINATING MASSPRODUCED WORKSTATION COMPUTERS FROM THE EXPORT CONTROLS LIST REVIEW THIS STANDARD WITHIN A REASONABLE TIME FRAME AS TECHNOLOGY ADVANCES BY LEAPS AND BOUNDS THIS PROBLEM WILL UNDOUBTEDLY SURFACE AGAIN UNLESS THE WHITE HOUSE STAYS ABREAST OF TECHNOLOGICAL ADVANCES AND ADAPTS US LAW AND POLICY ACCORDINGLY DUB THE COMMERCE DEPARTMENT'S BUREAU OF EXPORT ADMINISTRATION THE ONESTOP LICENSING AGENCY FOR HIGHPOWERED COMPUTER SALES THIS WILL CUT THE RED TAPE AND STREAMLINE THE PROCESS LEVEL THE PLAYING FIELD EXPORT CONTROLS SHOULD BE EQUAL FOR ALL NATIONS THAT HAVE THE ABILITY TO MANUFACTURE AND EXPORT THE PRODUCTS JUST AS INDUSTRY HAS CHANGED TO MEET MARKET DEMANDS AND RAPID INNOVATIONS IN TECHNOLOGY SO TOO MUST PUBLIC POLICY CHANGE THE GLOBAL ECONOMY IS A NEW REALITY THAT THE US MUST RECOGNIZE MR MCNEALY IS CHIEF EXECUTIVE OFFICER OF SUN MICROSYSTEMS INC HIS COMPANY RECENTLY TESTIFIED ON THIS ISSUE BEFORE A HOUSE FOREIGN AFFAIRS SUBCOMMITTEE 9306160019 930616 BUSINESS BRIEF US HOMECARE CORP EARNINGS OUTLOOK IS CUT SHARE PRICE TUMBLES 31 US HOMECARE CORP'S SHARE PRICE FELL 31 YESTERDAY AFTER THE COMPANY SAID SECONDQUARTER RESULTS WILL BE BELOW ANALYSTS' ESTIMATES DUE TO LOWERTHANEXPECTED REVENUE GROWTH AND AN ADDITION TO ITS RESERVE FOR UNCOLLECTIBLE ACCOUNTS ANALYSTS EXPECTED SECONDQUARTER EARNINGS OF 15 CENTS TO 16 CENTS A SHARE SAID A SPOKESWOMAN FOR THE COMPANY WHICH PROVIDES HOMEBASED HEALTH CARE EARNINGS WILL BE FIVE CENTS TO SEVEN CENTS A SHARE BEFORE A RESERVE OF 17 MILLION OR 12 CENTS A SHARE IS SET ASIDE IN THE YEAREARLIER PERIOD US HOMECARE HARTSDALE NY HAD NET INCOME OF 1 MILLION OR 12 CENTS A SHARE ON REVENUE OF 163 MILLION THE COMPANY SAID IT HAS DETERMINED THAT ITS MIAMI OFFICE IS MISSING PAPERWORK NECESSARY FOR MEDICARE RECEIVABLES IT HAS ELECTED TO TAKE A WRITEDOWN THUS NECESSITATING THE RESERVE IN COMPOSITE TRADING YESTERDAY ON THE OVERTHECOUNTER MARKET US HOMECARE CLOSED AT 6125 DOWN 275 9306160018 930616 CORPORATE FOCUS GM'S SATURN SUBSIDIARY IS FIGHTING FOR ITS FUTURE DESPITE ITS SALES SUCCESS UNIT FACES CRUCIAL TESTS ON LONGTERM VIABILITY BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT AT GENERAL MOTORS CORP'S SATURN SUBSIDIARY PEOPLE TALK ABOUT THEIR 100YEAR COMPANY AS SHORTHAND FOR THINKING LONG TERM BUT FOR SATURN PRESIDENT RICHARD G SKIP LEFAUVE IT'S RIGHT NOW THAT REALLY COUNTS WE WERE NEVER MEANT TO BE A LOSS LEADER FOR GM SAID MR LEFAUVE SATURN'S PRESIDENT IN A TELEPHONE INTERVIEW YESTERDAY WE WERE MEANT TO BE A PROFITABLE DIVISION THAT'S WHY AFTER AN ESTIMATED 700 MILLION LOSS LAST YEAR SATURN IS PULLING OUT THE STOPS TO TRANSLATE ITS SALES SUCCESS INTO AT LEAST A BREAKEVEN OPERATING PERFORMANCE THIS YEAR IN A HIGHLY UNUSUAL MOVE SATURN THIS YEAR PERSUADED DEALERS TO REDUCE THEIR PROFIT MARGINS BY ONE PERCENTAGE POINT ALLOWING SATURN TO KEEP ABOUT 100 EXTRA A CAR WORKERS AT SATURN'S SPRING HILL TENN FACTORY PUT IN SIXDAY WEEKS DURING MAY HELPING THE SUBSIDIARY TO TURN ITS FIRSTEVER MONTHLY OPERATING PROFIT NONE OF THIS IS ALTRUISM ON THE PART OF SATURN DEALERS OR WORKERS IF SATURN DOESN'T BREAK EVEN THIS YEAR ITS PROSPECTS FOR EXPANSION OR EVEN CONTINUED OPERATION AS A LARGELY INDEPENDENT UNIT ARE DIM MOREOVER ITS UNUSUAL BRAND OF LABORMANAGEMENT PARTNERSHIP IS UNDER PRESSURE FROM UNITED AUTO WORKERS UNION LEADERS WHO WANT THE MAVERICK SATURN OPERATION BROUGHT BACK IN LINE WITH THE UAW NATIONAL CONTRACT WITH GM MR LEFAUVE SAID HE IS CONFIDENT SATURN WILL SUCCEED IN BREAKING EVEN THIS YEAR BUT HE ACKNOWLEDGED SATURN STILL FACES CRUCIAL TESTS TO PROVE THAT IT CAN BE VIABLE LONGTERM SATURN HAS BEEN SELLING ITS COMPACT CARS WHICH CURRENTLY HAVE A BASE PRICE OF 9395 SINCE OCTOBER 1990 SATURN MANAGEMENT IS WORKING NOW ON TWO ALTERNATIVE BUSINESS PLANS TO PRESENT TO GM'S BOARD MR LEFAUVE SAID PLAN A WILL MAKE THE CASE FOR A SECOND SATURN ASSEMBLY PLANT AND SHOW HOW SATURN COULD OPERATE PROFITABLY WITH THE INCREASED CAPACITY BUT THERE'S ALSO A MORE MODEST PLAN B THAT WILL SHOW HOW SATURN CAN MAKE MONEY IF IT HAS TO MAKE DO WITH ITS CURRENT CAPACITY OF ABOUT 300000 CARS A YEAR AT ITS SPRING HILL ASSEMBLY PLANT WE'VE GOT TO EARN OUR CAPITAL JUST LIKE ANYBODY ELSE AT GM MR LEFAUVE SAID THAT'S THE WAY IT SHOULD BE AND THAT'S THE WAY IT WILL BE GM EXECUTIVES SAY IN CONTRAST TO THE MID1980S WHEN FORMER CHAIRMAN ROGER B SMITH LAVISHED MONEY ON SATURN IN HIS CRUSADE TO MAKE IT A MODEL FOR REFORMING GM GM COULD TAKE AS LONG AS A YEAR TO BE SURE THERE'S ENOUGH SUSTAINED DEMAND FOR SATURN CARS TO WARRANT A SECOND PLANT ONE SENIOR COMPANY EXECUTIVE SAID RECENTLY AND EVEN THEN GM WOULD LIKELY OPT FOR PUTTING A LOWCOST ASSEMBLY LINE IN AN UNDERUSED EXISTING FACTORY TO ADD 50000 TO 100000 SATURN CARS A YEAR SATURN OFFICIALS WOULD PREFER A SECOND FULLSIZE FACTORY NEAR SPRING HILL ACCORDING TO MICHAEL BENNETT PRESIDENT OF THE SATURN UAW LOCAL THAT WOULD ALLOW THE WORKERS IN THE NEW PLANT TO BE COVERED BY SATURN'S UNIQUE LABOR CONTRACT WHICH EMPHASIZES COOPERATION WITH MANAGEMENT THAT'S NO SMALL MATTER FOR SATURN UNDER ITS UNIQUE LIVING AGREEMENT WITH ITS 6500 UAWREPRESENTED EMPLOYEES SATURN ENJOYS THE KIND OF LABOR FLEXIBILITY MANY GM PLANT MANAGERS CAN ONLY DREAM ABOUT A MAIN PROVISION OF SATURN'S AGREEMENT FOR EXAMPLE PROVIDES THAT WORKERS CAN PUT IN FOUR 10HOUR DAYS A WEEK WITHOUT RECEIVING OVERTIME PAY FOR WORKING MORE THAN EIGHT HOURS IN A DAY THIS PROVISION SAVES SATURN SOME 60 MILLION A YEAR SAID MR BENNETT THE SATURN UNION LEADER BUT LAST MONTH STEPHEN P YOKICH UAW'S TOP GM NEGOTIATOR SENT A LETTER TO SATURN MANAGEMENT ASKING TO CHANGE MANY MAIN PROVISIONS OF THE OPENENDED SATURN CONTRACT THIS INCLUDED SATURN'S GRIEVANCE PROCEDURES ITS JOB CLASSIFICATION SYSTEM AND THE SATURN CONTRACT'S RELATIONSHIP WITH THE NATIONAL GMUAW AGREEMENT A UAW SPOKESMAN SAID MR YOKICH ASKED TO REOPEN THE SATURN CONTRACT BECAUSE OF ISSUES RAISED BY THE SATURN LOCAL UNION BUT MR BENNETT SAID MR YOKICH'S LETTER GOES BEYOND ANYTHING RAISED BY HIS LOCAL MR BENNETT SAID MR YOKICH WANTS SATURN TO PAY OVERTIME TO WORKERS WHO PUT IN MORE THAN EIGHT HOURS IN A DAY JUST AS GM DOES AT OTHER LOCATIONS THAT COULD FORCE SATURN TO RAISE PRICES BY 200 A CAR TO RECOUP THE ADDED LABOR EXPENSE MR BENNETT SAID THE ISSUE OF OVERTIME IS CRITICAL TO ALL OF GM NOT JUST SATURN AS PART OF ITS DRIVE TO BREAK EVEN IN ITS NORTH AMERICAN OPERATIONS GM WANTS FLEXIBILITY TO CONVERT SOME US FACTORIES TO SCHEDULES IN WHICH THREE CREWS OF WORKERS PUT IN FOUR 10HOUR DAYS EACH WEEK GM THUS CAN RUN A FACTORY FOR 120 HOURS A WEEK INSTEAD OF THE NORMAL 80 HOURS A WEEK GM'S LORDSTOWN ASSEMBLY PLANT WENT TO A THREECREW OPERATION IN AUGUST AS PART OF A SOFAR SUCCESSFUL STRATEGY TO BOOST SALES OF THE CHEVROLET CAVALIER BUT WORKERS THERE RECEIVE TIME AND HALF FOR THE LAST TWO HOURS OF EACH 10HOUR SHIFT AT SATURN THEY DON'T AND MR YOKICH APPARENTLY WANTS LORDSTOWN TO BE THE MODEL FOR OTHER PLANTS NOT SATURN MR LEFAUVE SAID HE PLANS TO MEET WITH MR YOKICH AND SHOW HIM SATURN'S BUSINESS PLANS WHICH ASSUME NO OVERTIME PAYMENTS FOR 10HOUR DAYS WE WANT HIM TO REVIEW OUR BUSINESS PLAN SAID MR LEFAUVE AND GET HIS UNDERSTANDING AS WE GO FORWARD AS MR LEFAUVE WRESTLES WITH THE CAPACITY AND LABOR ISSUES CRUCIAL TO SATURN'S PROFIT GOALS HE HAS HAD TO PUSH OTHER ISSUES LOWER ON SATURN'S LIST OF PRIORITIES ONCE FOR EXAMPLE SATURN DEALERS DREAMED OF GETTING A NEW LARGER SATURN MODEL TO OFFER CUSTOMERS LOOKING TO STEP UP FROM THE CURRENT SMALL SEDANS AND COUPES BUT MR LEFAUVE SAID YESTERDAY SATURN PLANS TO MAKE DO WITH VARIATIONS ON THE BASIC CAR SOLD TODAY ALL OF THIS REPRESENTS A CULTURE SHIFT FOR SATURN WHERE DISCUSSIONS OF PROFIT USED TO BE AVOIDED IN FAVOR OF PAEANS TO QUALITY BUT MR LEFAUVE SAID HE'S CONFIDENT SATURN WILL DO WHAT WE COMMITTED TO DO IT'S IMPORTANT TO THE CORPORATION HE ADDED THAT WE CONTRIBUTE TO THE BOTTOM LINE 9306160017 930616 TECHNOLOGY TWO AT ULSI SYSTEM ACQUITTED OF STEALING INTEL'S TRADE SECRETS SANTA CLARA CALIF ENDING A FOURYEAR LEGAL FIGHT A SANTA CLARA COUNTY SUPERIOR COURT JURY ACQUITTED THE FOUNDER OF A FLEDGLING CHIP MAKER OF CHARGES THAT HE STOLE TRADE SECRETS FROM INTEL CORP GEORGE HWANG PRESIDENT OF ULSI SYSTEM TECHNOLOGY INC WAS FOUND INNOCENT OF 13 COUNTS OF TRADE SECRET THEFT HIS FORMER EMPLOYEE ALFRED CHAN WHO HAD BEEN AN ENGINEER AT INTEL WAS ALSO ACQUITTED OF SEVEN COUNTS OF SIMILAR CHARGES IN 1989 CRIMINAL CHARGES CAME QUICK ON THE HEELS OF A CIVIL SUIT FILED BY INTEL AGAINST THE CLOSELY HELD UPSTART THE DISTRICT ATTORNEY'S OFFICE SAID THE CHARGES WERE PARTIALLY BASED ON COMPLAINTS BY INTEL OFFICIALS BOTH COMPANIES ARE BASED IN SANTA CLARA CALIF MR HWANG A TAIWANBORN ENTREPRENEUR SAID THE CRIMINAL AND CIVIL CHARGES HAVE HOBBLED THE COMPANY'S GROWTH NOTING THAT MORE MONEY HAS BEEN SPENT ON LITIGATION THAN ON BUSINESS SINCE THE CASE FIRST UNFOLDED IT'S PART OF A BIG CORPORATE STRATEGY TO WIPE OUT COMPETITION SAID MR HWANG UNFORTUNATELY THE JUDICIAL SYSTEMS IS BEING USED FOR THAT WE WON THE BATTLE BUT WE LOST THE WAR THE COMPANY WAS HIT BY THE TRADESECRET ALLEGATIONS JUST SIX MONTHS BEFORE IT WAS SUPPOSED TO RELEASE ITS FIRST PRODUCT A SOCALLED MATH COPROCESSOR CLONE THAT SPEEDS UP CALCULATIONS IN PERSONAL COMPUTERS MR HWANG SAID THE COMPANY IS MOVING AHEAD WITH A SOONTOBERELEASED GRAPHIC CHIP IN MAY ULSI SETTLED CIVIL PATENT AND TRADESECRET LAWSUITS WITH INTEL ULSI HAS AGREED TO PAY INTEL AN UNDISCLOSED AMOUNT IN COMPENSATION AN INTEL SPOKESWOMAN SAID THE COMPANY HAD NO COMMENT WE SETTLED OUR DISPUTE WITH THEM IN THE CIVIL CASE SHE SAID INTEL DENIES TRYING TO RUN ULSI OUT OF BUSINESS 9306160016 930616 INTERNATIONAL ROTHSCHILD BANK GETS NEW FUNDING FROM SHAREHOLDERS BY MARGARET STUDER SPECIAL TO THE WALL STREET JOURNAL ZURICH SHAREHOLDERS OF ROTHSCHILD BANK AG ZURICH INJECTED A LARGE SUM INTO THE BANK ALLOWING IT TO REPORT AN ANNUAL PROFIT DESPITE MASSIVE LOSSES FROM ONE OF THE MOST PUBLICIZED SCANDALS IN SWISS BANKING HISTORY GUY WAIS A SWISS BANKER WHO TOOK OVER AS CHIEF EXECUTIVE IN NOVEMBER SAID THE PROFIT OF 128 MILLION SWISS FRANCS 88 MILLION IN THE YEAR ENDED MARCH 31 WAS MADE POSSIBLE THROUGH A NEW CAPITAL INJECTION OF 1205 MILLION FRANCS MEMBERS OF THE ROTHSCHILD BANKING FAMILY OWN THE ZURICH BANK THE BANK HAS ACCUSED JUERG HEER THE BANK'S FORMER CREDIT MANAGER OF CAUSING IT TOTAL DAMAGES OF 270 MILLION FRANCS THE BANK ALLEGED THIS OCCURRED AS A RESULT OF MR HEER'S SUPPLYING UNAUTHORIZED LOANS TO COMPANIES AND TAKING KICKBACKS MR HEER WHO HAS DENIED THAT HE ENGAGED IN ANY CRIMINAL CONDUCT DISAPPEARED FROM ZURICH THIS YEAR AFTER BEING RELEASED FROM INVESTIGATIVE CUSTODY SOME MONTHS BEFORE AUTHORITIES HAVEN'T BROUGHT ANY CHARGES AGAINST THE FORMER BANKER BUT HE IS THE SUBJECT OF AN INTERNATIONAL ARREST WARRANT ISSUED BY SWISS INVESTIGATORS MR HEER HAS ACCUSED THE BANK OF CONDONING SCHEMES THAT HE SAID HELPED ITALIAN FAMILIES EVADE CAPITAL CONTROLS AND TAXES MR WAIS THE BANK'S CHIEF EXECUTIVE REFUSED TO DISCUSS THE CASE BUT HE INSISTED WE HAVE NO CONTACT WITH MR HEER WE DO NOT KNOW WHERE HE IS WE HAVE A STRONG INTEREST IN MR HEER BEING BROUGHT TO JUSTICE THE BANK ITSELF IS UNDER INVESTIGATION BY THE SWISS BANKING COMMISSION THE WATCHDOG ORGANIZATION FOR SWISS BANKS THE BANK SAID IT IS FULLY COOPERATING WITH THAT INVESTIGATION WE HAVE BEEN ABSOLUTELY CONSERVATIVE IN TOTALLY WRITING OFF ALL POSSIBLE LOSSES MR WAIS SAID HE ADDED THAT THERE WAS ZERO CHANCE OTHER QUESTIONABLE LOANS WILL BE FOUND MR WAIS POINTED TO THE BANK'S BALANCE SHEET OF 6224 MILLION FRANCS AS OF MARCH 31 EMPHASIZING THAT WE ARE VERY HEALTHY HOWEVER HE ADMITTED THE BANK HAD LOST BOTH CUSTOMERS AND PERSONNEL IN THE WAKE OF THE SCANDAL THE COMPETITION HASN'T HESITATED IN TAKING BUSINESS AND PEOPLE AWAY FROM US HOWEVER MR WAIS SAID THE ROTHSCHILD NAME REMAINS A MAGNET IN THE FUTURE SAID MR WAIS THE BANK WILL CONCENTRATE ON PORTFOLIO MANAGEMENT THE CORE BUSINESS FOR WHICH IT WAS FOUNDED 25 YEARS AGO IT SAID IT PLANS TO LIMIT ITS CREDIT BUSINESS TO SUPPORTING THE BANK'S PORTFOLIO MANAGEMENT ACTIVITIES 9306160015 930616 ROBBIES AGREE TO SELL A MAJORITY INTEREST IN MIAMI DOLPHINS MIAMI THE FAMILY THAT OWNS THE MIAMI DOLPHINS FOOTBALL TEAM SIGNED A LETTER OF INTENT TO SELL A MAJORITY INTEREST IN THE TEAM TO AN INVESTMENT GROUP HEADED BY NELSON PELTZ A NEW YORK FINANCIER AND BRUCE FREY A CHICAGO REAL ESTATE DEVELOPER THE ROBBIE FAMILY WHICH WOULD ALSO SELL ITS 50 INTEREST IN JOE ROBBIE STADIUM AS PART OF THE AGREEMENT DECLINED TO DISCUSS FINANCIAL TERMS BUT THE SALE PRICE WAS SAID TO BE ABOUT 150 MILLION THE DOLPHINS WERE FOUNDED BY JOE ROBBIE A LAWYER IN 1966 MR ROBBIE DIED IN 1990 AND HIS WIFE ELIZABETH DIED IN 1991 THE COUPLE'S CHILDREN HAVE BEEN TRYING TO SELL PART OF THE NATIONAL FOOTBALL LEAGUE TEAM TO PAY ESTATE TAXES ESTIMATED AT 40 MILLION TO 50 MILLION THE ROBBIES IN A STATEMENT SAID THEY PLAN TO HAVE A CONTINUED INVOLVEMENT IN OWNERSHIP AND MANAGEMENT OF THE DOLPHINS THEY DECLINED TO BE MORE SPECIFIC A MAJOR HURDLE IN THE PATH OF ANY WOULDBE BUYERS IS H WAYNE HUIZENGA CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF BLOCKBUSTER ENTERTAINMENT CORP THE MUSICRETAILING AND VIDEORENTAL COMPANY BASED IN FORT LAUDERDALE FLA MR HUIZENGA OWNS 15 OF THE DOLPHINS AND HALF OF JOE ROBBIE STADIUM MR HUIZENGA HAS THE RIGHT OF FIRST REFUSAL ON ANY SALE OF THE TEAM HOWEVER IF HE DECLINES TO MATCH AN OFFER FOR THE DOLPHINS AND THE ROBBIES FIND A BUYER FOR 100 OF THE TEAM MR HUIZENGA WOULD BE REQUIRED TO SELL HIS STAKE A SPOKESWOMAN FOR MR HUIZENGA SAID HE WOULD HAVE NO COMMENT UNTIL HE HEARS FROM THE ROBBIES THE ROBBIES SAID THEY AND MR PELTZ'S GROUP INTEND TO DEAL WITH WAYNE HUIZENGA WITH RESPECT TO HIS RIGHTS REGARDING THE TEAM AND THE STADIUM BLOCKBUSTER ITSELF HAS SAID THAT IT IS CONSIDERING BUYING INTO THE PROFESSIONAL SPORTS HOLDINGS OF MR HUIZENGA IN ADDITION TO HIS STAKES IN THE DOLPHINS AND THE STADIUM MR HUIZENGA ALSO OWNS THE FLORIDA MARLINS BASEBALL TEAM AND A NEW NATIONAL HOCKEY LEAGUE FRANCHISE THE FLORIDA PANTHERS MR PELTZ MADE HIS FORTUNE IN THE 1980S IN THE PACKAGING BUSINESS MR FREY WHO HEADS BJF GROUP IN GLENCOE ILL HAS BEEN WORKING FOR SEVERAL MONTHS TO ACQUIRE THE DOLPHINS HE SAID THIS IS SOMETHING I'VE WANTED TO DO ALL MY LIFE 9306160014 930616 WORLD MARKETS TOKYO EQUITIES TUMBLE ON MOVES IN POLITICS CURRENCY LONDON STOCKS FALL AMID RATE GLOOM A WALL STREET JOURNAL NEWS ROUNDUP TOKYO EQUITIES TUMBLED 17 TUESDAY WITH RETREATS IN ALL SECTORS IN THE FACE OF A CONTINUING SURGE IN THE JAPANESE YEN AND UNSETTLING POLITICAL DEVELOPMENTS LONDON PRICES FELL SHARPLY ON PERCEPTIONS THAT PROSPECTS FOR A BRITISH INTERESTRATE CUT WERE DIMINISHING FRANKFURT STOCKS DECLINED HALTING A WINNING STREAK AT EIGHT SESSIONS WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10698 DOWN 144 REFLECTING DECREASES IN THE AMERICAS AND EUROPE AND IN ASIA/PACIFIC MARKETS PRECIOUS METALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12583 UP 232 OR 19 WITH ECHO BAY MINES OF CANADA POSTING AN 86 GAIN IN ITS LOCAL CURRENCY FOOTWEAR STOCKS TRAILED AT 9927 DOWN 578 OR 55 WITH REEBOK INTERNATIONAL OF THE US SLIDING 16 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH DROPPED 10360 POINTS MONDAY SANK 35147 TO 2004588 WHICH ALSO WAS THE INTRADAY LOW ON WEDNESDAY THE NIKKEI INDEX FELL 13623 POINTS TO CLOSE THE MORNING SESSION AT 1990965 TUESDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES UP FROM 2613 MILLION SHARES ON MONDAY LOSERS SWAMPED GAINERS 103773 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EASED 158 POINTS MONDAY PLUNGED 3958 POINTS OR 24 TO 161988 AS THE YEN ROSE TO ANOTHER RECORD HIGH AGAINST THE US DOLLAR THE NIKKEI SPIRALED DOWN FROM THE SESSION'S PEAK OF 2039323 WHILE THE YEN HELD STEADY IN AFTERNOON TRADING NEW ROUNDS OF STOCK SELLING WERE PROMPTED BY REPORTS OF A THREAT BY OPPOSITION POLITICAL PARTIES TO CALL A VOTE OF NO CONFIDENCE TO FORCE PRIME MINISTER KIICHI MIYAZAWA TO DISSOLVE THE DIET OR PARLIAMENT AND CALL A GENERAL ELECTION FOR THE LOWER HOUSE THE LATEST MOVE IN THE WRANGLING OVER POLITICAL REFORM CAME JUST THREE WEEKS BEFORE MR MIYAZAWA IS TO HOLD THE SUMMIT OF SEVEN INDUSTRIAL NATIONS INDIVIDUAL INVESTORS MOVED TO CLOSE THEIR MARGIN POSITIONS OR STOCKS BOUGHT ON CREDIT A FURTHER BEARISH INDICATION ALSO LATE TUESDAY THE GOVERNMENT REPORTED THAT JAPANESE PRIVATESECTOR ORDERS FOR MACHINERY FELL FOR THE 13TH CONSECUTIVE MONTH STOCKS' DECLINE ALSO WAS FUELED BY WHAT PARTICIPANTS SAID WAS MANIPULATIVE SELLING BY US BROKERAGE FIRMS TIED TO THE SETTLEMENT OF INDEXLINKED BONDS IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX LOST 155 POINTS TO 28700 THE FT 30STOCK INDEX GAVE UP 126 POINTS TO 22503 VOLUME WAS 5123 MILLION SHARES COMPARED WITH 5001 MILLION SHARES A DAY EARLIER ACTIVITY WAS LACKLUSTER AHEAD OF A SPEECH YESTERDAY BY BRITAIN'S TREASURY CHIEF AFTER RISING A BIT EARLY IN THE SESSION STOCKS DROPPED STEEPLY IN LATEAFTERNOON TRADING AS SENTIMENT WAS HURT BY A LOWER START ON WALL STREET AND BY BEARISHNESS IN LONDON ABOUT ANY HELP FOR THE MARKET FROM INTERESTRATE MOVES DECLINES SPREAD ACROSS MOST SECTORS THE LOW LONDON TURNOVER STEMMED FROM THE START OF ANNUAL VACATIONS AND VARIOUS SPORTING EVENTS SUCH AS THE WIMBLEDON TENNIS TOURNAMENT AS WELL AS A RECENT DRAIN ON INSTITUTIONAL INVESTORS' LIQUIDITY FROM GILT OR GOVERNMENTBOND ISSUES AND STOCK AND STOCKRIGHTS OFFERS IN FRANKFURT THE DAX 30STOCK INDEX SLIPPED 788 POINTS TO 168410 IN THIN VOLUME IN A CONSOLIDATION AFTER THE RECENT CLIMB OF THE DAX ISSUES 23 FELL AND SIX ROSE WHILE PRICES WERE DOWN BROADLY BANK STOCKS FARED WELL IN PARIS AFTER A BATTLE TO CLIMB THROUGH A PERCEIVED TECHNICAL RESISTANCE LEVEL STOCKS ENDED SOLIDLY LOWER WITH LITTLE LASTING BOOST FROM THE PREVIOUS DAY'S FRENCH INTERESTRATE REDUCTION AS DISAPPOINTING ECONOMIC NEWS WEIGHED ON SENTIMENT IN MILAN THE ENTIRE MARKET WAS DRAGGED DOWN SHARPLY BY A 20 PLUNGE IN MONTEDISON AS INVESTORS DUMPED THE AGROINDUSTRIAL AND CHEMICAL COMPANY'S SHARES AMID PANIC ABOUT THE MAGNITUDE OF ITS FINANCIAL TROUBLES HEAVY SELLING ALSO HIT MONTEDISON'S PARENT FERRUZZI FINANZIARIA WHICH PLUMMETED 10 MONTEDISON'S FALL WOULD HAVE BEEN STEEPER BUT WAS BRAKED PARTLY BY SUPPORT FROM A GROUP OF CREDITOR BANKS THAT IS TRYING TO PUT TOGETHER A RESCUE PACKAGE FOR FERRUZZI WHICH ANNOUNCED HUGE LOSSES LATE LAST MONTH MADRID PRICES ROSE ON SPECULATION THAT GERMANY MIGHT CUT ITS INTEREST RATES SOON WHILE INVESTORS SHRUGGED OFF THE SPANISH CENTRAL BANK DECISION YESTERDAY TO LEAVE ITS BENCHMARK RATE UNCHANGED STOCKHOLM EQUITIES RECOVERED FROM A WEAK OPENING DAMPED BY HIGHER SWEDISH INTEREST RATES AND OVERSEAS BOURSES' SOFTNESS TO FINISH HIGHER LED BY BLUE CHIPS IN THE BANKING AND INSURANCE SECTORS WHILE A WEAKER DOLLAR HELPED EXPORTERS RECOUP SOME LOSSES INCURRED EARLY THIS WEEK IN ZURICH STOCKS DROPPED ACROSS THE BOARD IN THIN TURNOVER IN LINE WITH EUROPEAN BOURSES' GENERAL PERFORMANCE IN SYDNEY FOLLOWING A MONDAY HOLIDAY SHARE PRICES FIRMED MARKING THE THIRD CONSECUTIVE SESSION OF ADVANCES BUT GOLD SHARES FELL AFTER THE METAL'S PRICE DROPPED IN HONG KONG WHICH ALSO REOPENED AFTER A THREEDAY WEEKEND STOCKS ENDED HIGHER ON HOPES OF PROGRESS IN SINOBRITISH TALKS ON THE COLONY'S FUTURE BUT IN SINGAPORE PRICES TUMBLED IN BROAD PROFITTAKING RESULTING FROM BEARISH TECHNICAL READINGS AND POOR MARKET SENTIMENT BLUE CHIPS AND FOREIGNHELD SHARES WERE MOSTLY DOWN TAIPEI EQUITIES HALTED RECENT DECLINES IN A TECHNICAL REBOUND AND SCORED GAINS MANILA SHARES FELL AS THE MARKET LACKED FRESH BUYING INCENTIVES SEOUL STOCKS STILL CORRECTING FROM A RECENT SURGE LOST GROUND FOR THE FOURTH CONSECUTIVE SESSION AMONG CORPORATE DEVELOPMENTS IN TOKYO YOKOGAWA ELECTRIC SKIDDED 32 YEN OR 33 TO 950 YEN 903 THE INDUSTRIAL INSTRUMENTS MAKER'S CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SLUMPED 43 TO 664 BILLION YEN 631 MILLION 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 9306160013 930616 TECHNOLOGY NOVELL ORACLE PLAN PACKAGE OF DATABASE NETWORKING SOFTWARE SAN FRANCISCO NOVELL INC AND ORACLE CORP SAID THEY PLAN TO INTEGRATE THEIR FLAGSHIP DATABASE AND NETWORKING SOFTWARE PRODUCTS IN A MOVE THAT WOULD BRING THEM INTO COMPETITION WITH MICROSOFT CORP WHICH ALREADY DOES THE SAME THING NOVELL WILL DISTRIBUTE THE INTEGRATED PACKAGE FEATURING ITS NETWARE OPERATING SYSTEM AND ORACLE'S DATABASE UNDER THE NAME OF ORACLEWARE BY COMBINING TECHNOLOGY DISTRIBUTION AND SERVICING FOR CORPORATE NETWORKING COMPUTERS THE COMPANIES SAID THEY WERE RESPONDING TO CUSTOMER DEMAND NOT THROWING DOWN A CHALLENGE TO MICROSOFT'S PRIMACY THE CUSTOMERS HAVE URGED US TO GET TOGETHER SAID RAY NOORDA CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF NOVELL IN PROVO UTAH IT HAS NOTHING TO DO WITH MICROSOFT SOME ANALYSTS HOWEVER VOICED SKEPTICISM OVER THE BENIGN SOUNDING INTENTIONS THEY'RE BASICALLY TRYING TO BUILD AN ANTIMICROSOFT AXIS IN THE INDUSTRY SAID RICK SHERLUND AN ANALYST AT GOLDMAN SACHS & CO IN NEW YORK STRATEGICALLY IT SIGNALS NOVELL'S INTENT TO LEAD A CADRE OF VENDORS ORACLE AND NOVELL CLAIM THAT PACKAGING THEIR PRODUCTS TOGETHER IS PART OF A BROADER ALLIANCE WE COULDN'T BE CLOSER UNLESS WE MOVED TO UTAH SAID LARRY ELLISON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ORACLE IN REDWOOD SHORES CALIF MR NOORDA SAID NOVELL PLANNED OTHER ALLIANCES WITH SUCH INDUSTRY TITANS AS BORLAND INTERNATIONAL INC WORDPERFECT CORP AND LOTUS DEVELOPMENT CORP A MICROSOFT SPOKESMAN SAID THE REDMOND WASH COMPANY WASN'T CONCERNED I DON'T LOOK AT IT LIKE A SHOT IN A WAR HE SAID YOU COULD SEE SIMILAR ANNOUNCEMENTS FROM MICROSOFT TOO MICROSOFT SELLS ITS OWN NETWORKING SOFTWARE WITH A DATABASE FROM SYBASE INC AN ORACLE RIVAL 9306160012 930616 LEISURE & ARTS THE ELECTRONIC PIAZZA BY FREDERIKA RANDALL MILAN LOOK DOWN FROM THE ROOFTOP OF THE DUOMO MILAN'S CATHEDRAL AND YOU MAY NOTICE A FAINT WHIRLPOOL WHERE THE PEDESTRIAN TRAFFIC POURS OUT FROM THE GALLERIA INTO THE PIAZZA DEL DUOMO THAT SPOT IS THE CITY'S EQUIVALENT OF A SPEAKERS' CORNER WHERE MOST EVERY AFTERNOON A SMALL CROWD GATHERS TO ARGUE AND TALK POLITICS BRAVING THE MERCENARY PIGEONS AND WELLDRESSED BRIEFCASE HOLDERS STREAMING BY IT'S ALL VERY PICTURESQUE NOT THAT MANY MILANESE BOTHER TO STOP AND LISTEN NOBODY CARES ABOUT PUBLIC LIFE ANYMORE OLDER CITIZENS WILL TELL YOU IT'S TELEVISION THEY GRUMBLE PEOPLE JUST HOLE UP AT HOME THEY HAVE NO INTEREST IN THE REST OF THE WORLD WELL THAT SOUNDS PLAUSIBLE ENOUGH AS LONG AS YOU DON'T ACTUALLY SWITCH ON THE EVIL MEDIUM ITSELF FOR THESE DAYS AS ANYONE WHO LOOKS AT EITHER THE STATERUN RAITV CHANNELS OR THE FININVEST GROUPOWNED COMMERCIAL STATIONS OF SILVIO BERLUSCONI KNOWS STREETCORNER DEBATING SOCIETIES AND SOAPBOX ORATORY ARE FLOURISHING IN NEW LIVEWIRE TELEGENIC VERSIONS THE ELECTRONIC PIAZZA SOMEBODY DUBBED THE TREND THE ELECTRONIC PARLIAMENT SAID SOMEBODY ELSE AVANTGARDE OPINION SPOTS HOT POLITICAL DEBATES AND BRAWLING PUBLICAFFAIRS PROGRAMS DRAW AUDIENCES UNDREAMEDOF FOR THOSE WORTHY BUT ELSEWHERE FREQUENTLY DREARY PROGRAMMING CATEGORIES VIEWER APPETITE FOR FACT AND OPINION IS SUCH THAT STATIONS DON'T HESITATE TO FEATURE A BATCH OF LEADERS OF SMALL POLITICAL PARTIES OR A DISCUSSION ABOUT TAXING EARNINGS ON TREASURY BONDS WHEN JUDGE ANTONIO DI PIETRO APPEARED ON A DAY IN COURT SHOW TO PROSECUTE A SOCIALIST POLITICIAN FOR TAKING BRIBES SOME 50 OF THE PRIMETIME AUDIENCE WAS WATCHING MAGISTRATES AND REFORM POLITICIANS ARE SO MUCH IN DEMAND AS RATINGS BOOSTERS THAT THEY TEND TO JUMP FROM STUDIO TO STUDIO IN THE COURSE OF AN EVENING ZAPPING UMANO THE CORRIERE DELLA SERA'S TV CRITIC ALDO GRASSO CALLED IT HUMAN ZAPPING ITALIAN STATIONS BROADCAST MORE HOURS OF INFORMATION AND PUBLIC AFFAIRS IN 1992 THAN EVER BEFORE WHILE THE ONCEPOPULAR GAME SHOWS AND MADEFORTV SERIES FELL OFF SHARPLY THE TREND ACCELERATED IN THE FIRST THREE MONTHS OF 1993 WHEN NEWS AND CURRENT AFFAIRS TOTALED 2362 HOURS WHILE THE TELEFILM CATEGORY NATIVE AND IMPORTED SOAPS AND MADEFORTV SERIES AND MOVIES STOOD AT 1759 HOURS AS RECENTLY AS 1991 THE PERCENTAGES OF AIR TIME WERE THE REVERSE TELEVISION HAS TAKEN THE PLACE OF THE COMMUNITY MEETING AND THE PIAZZA MAURIZIO COSTANZO HOST OF A POPULAR LATENIGHT TALK SHOW TOLD THE DAILY NEWSPAPER LA REPUBLICA IN MIDMAY MR COSTANZO NARROWLY MISSED BEING BLOWN UP IN A MAFIA CAR BOMBING POLICE SAID HIS HIGHPROFILE SHOWS ON TIES AMONG ORGANIZED CRIME POLITICS AND BUSINESS HAD MADE HIM A TARGET AT RAITV'S THREE CHANNELS PRODUCERS USED TO COMPLAIN ABOUT HAVING TO TOE THE PARTY LINE BUT TIMES SEEM TO BE CHANGING LAST YEAR WHEN THE INFLUENCE OF THE RULING POLITICAL PARTIES ON RAITV WAS MUCH MORE KEENLY FELT STATION EXECUTIVES CANCELED PROVOCATIVE TRANSMISSIONS OF TWO GADFLY PROGRAMS PROFONDO NORD OR DEEP NORTH AND SAMARCANDA PARADOXICALLY BLOCKING THESE SHOWS BOUNCED THEM FURTHER INTO THE LIMELIGHT AND HELPED THEM TO BECOME OPPOSITION FORUMS THE FININVEST COMMERCIAL STATIONS ON THE OTHER HAND USED TO SUFFER FROM AN OVERDOSE OF FLUFF BUT THE LUSH SWAMP OF AMERICAN SITCOMS BRAZILIAN TELENOVELLAS AND NATIVE GAME SHOWS THAT ONCE APPEALED TO ADVERTISERS IS BEING PRUNED IN 1992 CANALE 5 THE PRESTIGE COMMERCIAL CHANNEL TRIPLED THE TIME IT DEVOTED TO NEWS AND CURRENT AFFAIRS TO 1012 HOURS LOCAL STATIONS ARE ALSO BROADCASTING MORE NEWS AND COMMENT LAST YEAR FININVEST TV TALKSHOW HOST GIANFRANCO FUNARI LOST HIS JOB AFTER TAKING ONE TOO MANY JABS AT LEADING POLITICIANS HE HAS NOW SET UP HIS OWN PRODUCTION COMPANY AND SUCCESSFULLY MARKETS HIS NOW EVEN BOLDER SHOW TO ADVERTISERSUPPORTED LOCAL STATIONS THE NEW CROP OF PROGRAMS RANGE FROM THE HIGHBROW TO THE ROWDY AND DISTINCTLY EXPERIMENTAL AN EXAMPLE OF THE FIRST IS THE INFLUENTIAL MILANO ITALIA AN HOURLONG LIVE SESSION FIVE NIGHTS A WEEK FOCUSING ON ECONOMIC AND POLITICAL AFFAIRS CREATED BY THE RESPECTED YOUNG JOURNALIST GAD LERNER THE SHOW TAKES PLACE IN A MAKESHIFT STUDIO THAT TRAVELS AROUND NORTHERN ITALY DECISION MAKERS AND EXPERTS MADE TO SIT ON PACKING CRATES IN A DELIBERATELY POOR SET DEFEND THEIR POINT OF VIEW BEFORE A TOUGH PARTICIPANT CROWD IL ROSSO E IL NERO THE RED AND THE BLACK GOES FURTHER ACTIVELY SEEKING TO BRING DOWN THOSE RESPONSIBLE FOR GOVERNMENT MISDEEDS INVESTIGATIVE REPORTING AND LIVE PARTICIPATION FROM CROWDS ASSEMBLED IN PUBLIC SQUARES AROUND ITALY ARE MIXED WITH STUDIO COMMENTARY BY REBEL HOST MICHELE SANTORO VIEWERS CHIME IN ON DIRECT PHONE LINES TO VOTE ON ISSUES AND TO ATTACH THEMSELVES TO ONAIR PETITIONS BY FAX AT THE SURREALIST END OF THE RANGE THERE IS THE 10MINUTE AFTERNOON OPINION SHOW BY ART HISTORIAN AND LIBERAL MEMBER OF PARLIAMENT VITTORIO SGARBI CALLED SGARBI QUOTIDIANI ROUGHLY DAILY INSULTS YES THAT'S WHAT HIS LAST NAME MEANS IT FEATURES THE ART CRITIC PINNED IN A FIXEDFRAME SHOT TOSSING HIS LANK NONSTYLED HAIR AS HE MAKES WILD COMMENTS ON THE EVENTS OF THE DAY BEHIND HIM IS A CANVAS BY THE ITALIAN SURREALIST PAINTER GIORGIO DE CHIRICO FLANKED BY A MYSTERIOUS GUARDLIKE FIGURE IN PROFILE WHOSE ONLY SIGN OF LIFE IS AN OCCASIONAL BLINK SATIRE AND STRAIGHT TV INCREASINGLY GET MIXED BLOB MAKES SAVAGE OBSERVATIONS USING A MONTAGE OF NEWS CLIPS FROM STATE AND COMMERCIAL STATIONS ON DIRITTO DI REPLICA RIGHT OF REBUTTAL PUBLIC FIGURES CAN RESPOND TO GOSSIP INSINUATIONS OR OUTRIGHT CHARGES THE TRICK IS IN THE CAMERA WORK FOR EXAMPLE WHEN FERNANDA CONTRI THE NEW MINISTER FOR SOCIAL ISSUES RECENTLY APPEARED A WILDLY INDECENT CAMERA INSPECTED THE TINY SNAGS IN HER STOCKINGS HAIR ON HER LEGS AND BAGS UNDER HER EYES USING A FOCUS SO TIGHT THAT A SINGLE EAR COULD FILL THE ENTIRE SCREEN BAD TASTE THERE'S A FAIR AMOUNT OF THAT BUT THERE ARE ALSO SUDDENLY FRESH IDEAS AND ENERGY AS WELL AS A LEVEL OF VIEWER PARTICIPATION THAT OTHER EUROPEAN PRODUCERS MIGHT ENVY IN THE TOPSYTURVY WORLD OF ITALY TODAY TV HAS BECOME COURTROOM PARLIAMENT AND SOAP BOX AND A VERY POTENT OPINIONSHAPER MS RANDALL IS A WRITER IN MILAN 9306160011 930616 LAW LEGAL BEAT GINSBURG BUSINESS RULINGS SHOW BALANCE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AS A LAWYER SUPREME COURT NOMINEE RUTH BADER GINSBURG FOUGHT FOR WOMEN'S RIGHTS IN THE WORKPLACE BUT SINCE SHE JOINED THE FEDERAL APPEALS COURT HERE IN 1980 SHE APPEARS TO HAVE BEEN SCRUPULOUSLY NONIDEOLOGICAL IN HER HANDLING OF WORKRELATED AND OTHER BUSINESS CASES THE GINSBURG JUDICIAL RECORD DISCLOSES A CRAFTSWOMAN WHO EXPLAINS HER CONCLUSIONS COMPETENTLY IF NOT WITH MUCH STYLE SHE IS A STICKLER FOR PROCEDURE BUT DOESN'T USE THE HIDDEN TECHNICAL TRAPS TO FAVOR WORKERS CONSUMERS OR BUSINESS CONSISTENTLY SHE'S EXTREMELY BALANCED THOUGHTFUL AND DOESN'T JUMP TO CONCLUSIONS SAYS JERRY COHEN A FORMER GENERAL COUNSEL OF THE INTERNAL REVENUE SERVICE WHO URGED MR CLINTON TO NOMINATE JUDGE GINSBURG PRESIDENT CLINTON SAID YESTERDAY IN A NEWS CONFERENCE THAT BUSINESS LAW WAS AMONG THE SUBJECTS HE DISCUSSED WITH JUDGE GINSBURG BEFORE DECIDING TO APPOINT HER HE DIDN'T ELABORATE DESPITE JUDGE GINSBURG'S BACKGROUND AS A CIVILRIGHTS LAWYER SOME BUSINESS ADVOCATES PRAISE HER APPOINTMENT SHE UNDERSTANDS THE DIFFERENCE BETWEEN POLITICS AND JUDICIAL VIEWS SAYS ALAN SLOBODIN OF THE PROBUSINESS WASHINGTON LEGAL FOUNDATION A CARTER APPOINTEE JUDGE GINSBURG HAS BEEN AS CONSISTENTLY CONSERVATIVE AS ANY BUSH OR REAGAN JUDGE ON THE DC CIRCUIT IN CASES INVOLVING SUBSTANTIVE ANTITRUST STANDARDS LIABILITY RULES AND REMEDIES AGREES WILLIAM KOVACIC A LAW PROFESSOR AT GEORGE MASON UNIVERSITY IN ARLINGTON VA MR SLOBODIN POINTED TO SOME OF JUDGE GINSBURG'S VOTES IN ANTITRUST CASES AS HIS EXHIBIT A CONSERVATIVES OPPOSE AGGRESSIVE USE OF THE ANTITRUST LAWS TO INTERFERE WITH CORPORATE ACTIVITY SUCH AS MERGERS AMONG RIVALS OR ALLIANCES BETWEEN SUPPLIERS AND RETAILERS IN 1986 JUDGE GINSBURG CAST VOTES ENDORSING TWO MAJORITY ANTITRUST OPINIONS WRITTEN BY HER FORMER COLLEAGUE ON THE APPEALS COURT ROBERT BORK IN ONE CASE THE COURT REJECTED ALLEGATIONS THAT A MOVINGVAN COMPANY ILLEGALLY TERMINATED SOME OF ITS REGIONAL AGENTS IN AN EFFORT TO STIFLE COMPETITION IN THE OTHER THE COURT REBUFFED CLAIMS OF MONOPOLIZATION IN THE ROADCONSTRUCTION BUSINESS LIBERAL CRITICS IN THEIR SUCCESSFUL CAMPAIGN IN 1987 TO KEEP MR BORK OFF THE SUPREME COURT CITED THESE RULINGS AS EXCESSIVELY PERMISSIVE IT'S A LITTLE IRONIC THAT THE LIBERALS ARE PUSHING JUDGE GINSBURG NOW NOTES MR SLOBODIN IN A 1990 CASE JUDGE GINSBURG JOINED AN UNUSUALLY HARSH MAJORITY OPINION CHASTISING ANTITRUSTENFORCEMENT OFFICIALS FOR TRYING TO BLOCK A MERGER OF TWO DRILLING COMPANIES THE AUTHOR WAS HER ONCE AND PERHAPS FUTURE COLLEAGUE CLARENCE THOMAS HE CALLED THE JUSTICE DEPARTMENT'S POSITION DEVOID OF SUPPORT IN THE STATUTE IN THE CASE LAW AND IN THE GOVERNMENT'S OWN MERGER GUIDELINES BUT JUDGE GINSBURG CAN'T BE COUNTED AS AN AUTOMATIC VOTE IN FAVOR OF CORPORATE BIGNESS SHE DISSENTED FROM A 1989 RULING THAT UPHELD THE JUSTICE DEPARTMENT'S APPROVAL OF A JOINT OPERATING AGREEMENT BETWEEN DETROIT'S TWO MAJOR NEWSPAPERS SHE SAID SHE DIDN'T BELIEVE THE CONTENTION THAT ONE OF THE PAPERS WOULD HAVE FAILED ON ITS OWN WHEN ADDRESSING WORKERS' RIGHTS OR SAFETY JUDGE GINSBURG AVOIDS SWEEPING RHETORIC AND TENDS TO FRAME HER RULINGS AS EFFORTS TO MAKE THE LEGAL PROCESS RUN PROPERLY IN A 1985 RULING SHE DISPASSIONATELY REJECTED THE GOVERNMENT'S STRATEGY OF ERECTING A PROCEDURAL OBSTACLE COURSE TO DEFLECT A FEDERAL EMPLOYEE'S RACEDISCRIMINATION SUIT THREE YEARS LATER SHE REVERSED A RULING BY THE FEDERAL MINE SAFETY COMMISSION AND FOUND IN FAVOR OF A MINER WHO REFUSED TO WORK BECAUSE HE CLAIMED HIS EMPLOYER'S MINE WAS TOO DANGEROUS WITHOUT DECLARING HER LOYALTIES IN SUCH LIFEANDDEATH INDUSTRIAL STRUGGLES SHE FOCUSED ON THE COMMISSION'S REASONING WHICH SHE FOUND TO BE INCONSISTENT WITH THE SAFETYENFORCING MINERPROTECTIVE TENOR OF THE MINE SAFETY ACT BUSINESS LAWYERS HAPPILY REPORT THAT JUDGE GINSBURG APPEARS TO BE SENSITIVE TO EXCESSIVE ENVIRONMENTAL REGULATIONS BUT A CLOSE READING OF HER OPINIONS IN THIS AREA DISCLOSES A PRAGMATIC PREFERENCE FOR LEAVING SCIENTIFIC DETAILS TO THE EXPERTS RATHER THAN TRYING TO ROLL BACK RESTRICTIONS ON BUSINESS CONSIDER HER 1990 DECISION IN A CASE CONCERNING DISPOSAL OF HAZARDOUS WASTE BY INJECTING IT INTO WELLS THOUSANDS OF FEET UNDERGROUND ENVIRONMENTALISTS CLAIMED THAT THE FEDERAL GOVERNMENT'S REGULATIONS OF SOCALLED DEEP INJECTION WERE TOO LENIENT INDUSTRY SAID THE RULES WERE TOO TOUGH JUDGE GINSBURG RULED THAT THE REGULATIONS ARE REASONABLE EXERCISES OF THE EPA'S AUTHORITY AND DISCRETION BUT SHE SENT THE CASE BACK TO A LOWER COURT FOR FURTHER CONSIDERATION OF HAZARDOUSWASTE DISPOSAL IN CERTAIN SALT BEDS UNDERGROUND MINES AND CAVES UNIONS ARE WORRIED ABOUT A COUPLE OF GINSBURG OPINIONS ONE LIMITED LEGAL PROTECTIONS FOR UNIONS THAT DON'T REPRESENT A MAJORITY OF A COMPANY'S EMPLOYEES EVEN IN CASES WHERE THE COMPANY ACTS IN A THREATENING AND OUTRAGEOUS FASHION THE OTHER FAVORED A RESTAURANT OPERATOR WHO CALLED POLICE TO ARREST TRESPASSING UNION PROTESTERS WHO WERE HANDING OUT LEAFLETS THE WHITE HOUSE IN A CAREFULLY WORDED STATEMENT DEFENDED JUDGE GINSBURG AS SHOWING BALANCE AND MODERATION IN HER LABOR DECISIONS ADDING THAT SHE HAS REQUIRED STRICT ENFORCEMENT OF THE RIGHTS OF FAIRLY ELECTED UNIONS THE 1985 CASE WHITE HOUSE LAWYERS CITE FOR THAT PROPOSITION INCLUDED A QUINTESSENTIAL GINSBURG OPINION THE COURT WAS FACED WITH INTERPRETING A FEDERAL LAW MEANT TO PRESERVE THE COLLECTIVEBARGAINING RIGHTS OF UNIONIZED EMPLOYEES OF PRIVATELY OWNED TRANSIT SYSTEMS THAT ARE MADE PUBLIC THE MAJORITY OPINION WRITTEN BY JUDGE HARRY EDWARDS SAID THE LABOR DEPARTMENT HAD ERRED WHEN IT ALLOWED THE ATLANTA TRANSIT AUTHORITY TO LIMIT THE BARGAINING RIGHTS OF ITS WORKERS JUDGE GINSBURG CONCURRED WITH THE RULING BUT WROTE A CONCISE SEPARATE OPINION SHE NOTED THAT THE RELEVANT STATUTE MIGHT BE OUTDATED NEVERTHELESS SHE CONCLUDED SINCE CONGRESS HAD FAILED TO UPDATE THE LAW THE COURT WAS FORCED TO RULE IN FAVOR OF THE UNION A GROUP OF BLACK HOMEOWNERS IN TOLEDO OHIO SUED NATIONWIDE MUTUAL INSURANCE CO FOR ALLEGEDLY DISCRIMINATING AGAINST THEM ON THE BASIS OF RACE FIVE HOMEOWNERS ONE PROSPECTIVE HOMEOWNER AND THE TOLEDO FAIR HOUSING CENTER A NONPROFIT AGENCY ALLEGED IN THE LAWSUIT THAT NATIONWIDE AGENTS REFUSED TO QUOTE RATES OR QUOTED INAPPROPRIATELY HIGH RATES FOR HOMEOWNERS IN PREDOMINANTLY BLACK NEIGHBORHOODS THE SUIT SAID THE SAME AGENTS QUOTED LOWER RATES WHEN ASKED ABOUT COVERAGE FOR COMPARABLE HOMES IN WHITE NEIGHBORHOODS THE SUIT WAS BASED ON THE FINDINGS OF SOCALLED TESTERS WHO POSED AS HOMEOWNERS TO DETERMINE WHETHER THE AGENTS OFFERED DIFFERENT TERMS TO PEOPLE BASED ON RACE THE BLACK HOMEOWNERS WERE TOLD THAT NATIONWIDE BASED IN COLUMBUS DOESN'T INSURE HOMES WITH MARKET VALUES OF LESS THAN 45000 ACCORDING TO THE SUIT BUT WHITE TESTERS WHO SAID THEIR HOMES WERE VALUED AT 37500 HAD NO TROUBLE GETTING QUOTES LOUIS FABRO A SPOKESMAN FOR NATIONWIDE SAID THE INSURER SETS IDENTICAL RATES THROUGHOUT TOLEDO HE ALSO SAID NATIONWIDE'S MARKETVALUE MINIMUM IS ONLY 15000 I JUST CAN'T BELIEVE THAT'S TRUE MR FABRO SAID OF THE SUIT'S ALLEGATIONS NATIONWIDE INSURANCE TREATS ALL INSURANCE APPLICANTS EQUALLY REGARDLESS OF WHERE THEY WORK WHERE THEY LIVE THEIR COLOR OR ANY OTHER FACTOR THE PLAINTIFFS ARE SEEKING TO HAVE THE SUIT MADE A CLASS ACTION ON BEHALF OF HOMEOWNERS IN BLACK NEIGHBORHOODS IN TOLEDO WEDTECH REDUX E ROBERT WALLACH WENT ON TRIAL AGAIN YESTERDAY FOR HIS ALLEGED ROLE IN THE 1980S INFLUENCEPEDDLING SCANDAL AT DEFUNCT WEDTECH CORP A MINORITYOWNED DEFENSE CONTRACTOR MR WALLACH A SAN FRANCISCO TRIAL LAWYER AND AN ADVISER TO FORMER US ATTORNEY GENERAL EDWIN MEESE III IS ACCUSED OF SUBMITTING FALSE BILLS IN RETURN FOR LOBBYING THE GOVERNMENT ON WEDTECH'S BEHALF MR WALLACH WHO IS REPRESENTING HIMSELF AT THE TRIAL IN FEDERAL COURT IN NEW YORK WAS CONVICTED AT THE FIRST TRIAL BUT THAT CONVICTION WAS LATER OVERTURNED BECAUSE OF PERJURY BY A GOVERNMENT WITNESS DISCIPLINING DOCTORS PHYSICIAN DISCIPLINARY PROCEEDINGS IN NEW YORK MUST BE KEPT SECRET UNTIL A FINAL RULING IS REACHED THE STATE'S HIGH COURT FOUND SINCE 1983 THE STATE HEALTH DEPARTMENT HAS RELEASED DOCTORS' NAMES BEFORE INVESTIGATIONS WERE COMPLETED BUT THE HIGH COURT SAID DOCTORS SHOULD BE TREATED LIKE OTHER LICENSED PROFESSIONALS FOR WHOM SUCH PROCEEDINGS ARE KEPT CONFIDENTIAL UNTIL A FINAL RULING EMBRYO CUSTODY FIGHT THE SEVEN FROZEN HUMAN EMBRYOS AT THE CENTER OF AN UNUSUAL CUSTODY BATTLE HAVE BEEN DESTROYED THE ASSOCIATED PRESS REPORTED THE EMBRYOS WERE FERTILIZED IN 1988 BY A TENNESSEE COUPLE WHO GOT DIVORCED A YEAR LATER THE WOMAN WANTED TO BRING THE EMBRYOS TO TERM OR GIVE THEM TO A CHILDLESS COUPLE BUT THE EXHUSBAND MAINTAINED THAT SUCH A DECISION WOULD TURN HIM INTO A FATHER AGAINST HIS WILL THE TENNESSEE SUPREME COURT RULED IN FAVOR OF THE EXHUSBAND AND THE EMBRYOS WERE TURNED OVER TO HIM EARLIER THIS MONTH THE MAN'S ATTORNEY DECLINED TO SAY HOW THE EMBRYOS WERE DESTROYED JUNDA WOO IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9306160010 930616 FOREIGN EXCHANGE DOLLAR RISES ON CONSUMER PRICE REPORT EXPECTATIONS GERMANY WILL LOWER RATES BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR LEAPT HIGHER PROPELLED BY A TECHNICAL REBOUND FROM WEAKERTHANEXPECTED US MAY CONSUMER PRICE DATA AND BY EXPECTATIONS THAT A GERMAN INTEREST RATE CUT IS PENDING THE DOLLAR'S JUMP AGAINST EUROPEAN CURRENCIES HELPED IT REBOUND FROM YET ANOTHER POSTWORLD WAR II LOW AGAINST THE JAPANESE YEN TRADERS SAID LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16455 MARKS UP FROM 16280 MARKS LATE MONDAY THE US CURRENCY ALSO WAS CHANGING HANDS AT 10575 YEN UP FROM 10510 YEN STERLING WAS TRADING AT 15155 DOWN FROM 15275 ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10578 YEN AND AT 16469 MARKS DEALERS SAID THE DOLLAR'S RALLY CAME DESPITE A WEAKERTHANEXPECTED REPORT ON US CONSUMER PRICES WHICH ORDINARILY MIGHT HAVE CAUSED THE DOLLAR TO SAG THE CONSUMER PRICE INDEX A KEY MEASURE OF INFLATION ROSE 01 IN MAY FROM APRIL AND AT A 17 ANNUAL RATE AFTER COMPOUNDING THE LABOR DEPARTMENT REPORTED THE MARKET HAD ANTICIPATED A 02 RISE FROM APRIL THE CPI FIGURES EASED CONCERNS ABOUT RESURGENT US INFLATION AND ALSO COOLED EXPECTATIONS THAT US INTEREST RATES WOULD RISE IN THE NEAR FUTURE SAID JOHN NELSON DIRECTOR OF FOREIGN EXCHANGE AT BARCLAYS BANK PLC THE DATA PROMPTED SOME DOLLAR SELLING AGAINST THE MARK MR NELSON SAID THE MARKET WAS LOOKING FOR A NUMBER THAT WOULD JUSTIFY HIGHER RATES HE SAID HIGHER INTEREST RATES WOULD TEND TO MAKE DEPOSITS DENOMINATED IN DOLLARS MORE ATTRACTIVE TO INVESTORS BUT THE DOLLAR MET SOLID TECHNICAL SUPPORT JUST ABOVE 16200 MARKS AND THEN BEGAN TO RALLY MR NELSON SAID AS THE DOLLAR MOVED THROUGH SEVERAL IMPORTANT RESISTANCE LEVELS NEW DOLLAR BUYING EMERGED TO ACCELERATE ITS ADVANCE TRADERS SAID REMARKS FROM A MEMBER OF THE BUNDESBANK'S POLICYMAKING CENTRAL BANK COUNCIL THAT APPEARED TO POINT TO LOWER GERMAN INTEREST RATES ALSO CONTRIBUTED TO THE DOLLAR'S GAINS SAID WILLIAM ARNOLD CHIEF DEALER AT CHEMICAL BANK IN AN INTERVIEW WITH APDOW JONES JOHANN WILHELM GADDUM SAID A SLOWDOWN IN THE PACE OF GERMAN MONEY SUPPLY EXPANSION COULD GIVE THE GERMAN CENTRAL BANK ROOM TO LOWER INTEREST RATES THE MARKET INTERPRETED THAT AS MEANING THE BUNDESBANK IS CONSIDERING A RATE CUT MR ARNOLD SAID GERMANY'S BROAD M3 MONEY SUPPLY GREW AT A REVISED ANNUAL RATE OF 70 IN APRIL ABOVE THE BANK'S TARGET THAT HIGH FIGURE HAS BEEN CITED REPEATEDLY BY GERMAN MONETARY OFFICIALS AS A REASON FOR NOT TRIMMING RATES FURTHER MONEY SUPPLY DEVELOPMENTS IN MAY COULD INDEED MOVE BACK WITHIN THE CORRIDOR IN LINE WITH THE ECONOMIC COOLINGOFF MR GADDUM SAID WE WILL WAIT AND SEE IF THE MONEY FIGURES PROVIDE US WITH ROOM TO MANEUVER NEW EXPECTATIONS ABOUT LOWER GERMAN RATES BEGAN TO REEMERGE OVER THE WEEKEND ON SUNDAY OTMAR ISSING ANOTHER SENIOR BUNDESBANK OFFICIAL SAID THERE WAS A GREAT POSSIBILITY THE MAY M3 FIGURE WOULD FALL INSIDE THE CENTRAL BANK'S TARGET ZONE THE DATA ARE EXPECTED TO BE RELEASED NEXT WEEK THE DOLLAR'S RISE AGAINST THE YEN CAME PARTLY IN SYMPATHY WITH THE DOLLAR'S STRENGTHENING AGAINST THE MARK AND OTHER EUROPEAN CURRENCIES DEALERS SAID IT ALSO CAME AFTER THE US CURRENCY HAD TRADED UNDER 10500 YEN WHICH TRADERS SAID THE BANK OF JAPAN MAY VIEW AS AN IMPORTANT PSYCHOLOGICAL LEVEL THE JAPANESE CENTRAL BANK WAS SEEN INTERVENING JUST BELOW 10500 YEN IN ASIAN TRADING SAID LISA FINSTROM A CURRENCY ANALYST AT SHEARSON LEHMAN BROTHERS THE DOLLAR'S INTRADAY LOW 10482 YEN WAS A POSTWORLD WAR II RECORD THE PREVIOUS RECORD 10510 YEN WAS SET MONDAY THE INTERVENTION WAS SUBSTANTIAL ENOUGH TO HALT THE US CURRENCY'S SLIDE MS FINSTROM SAID MUCH OF THE DOLLAR'S SUBSEQUENT RISE WAS PURE AND SIMPLE SHORT COVERING A FEAR OF 10500 YEN AND THE POTENTIAL FOR FRESH CONCERTED CENTRAL BANK INTERVENTION AROUND THAT LEVEL SHE ADDED MOREOVER A SLIGHT NARROWING IN JAPAN'S MAY TRADE SURPLUS WITH THE US WAS DOLLAR FRIENDLY SHE SAID JAPAN'S TRADE SURPLUS AND US EFFORTS TO RESTRAIN IT HAVE BEEN AT THE CENTER OF THE YEN'S APPRECIATION AGAINST THE DOLLAR 9306160009 930616 BUSINESS BRIEF AIR METHODS CORP BREAKEVEN FISCAL 1993 SEEN FOLLOWING YEARBEFORE LOSS AIR METHODS CORP SAID IT EXPECTS TO BREAK EVEN IN FISCAL 1993 ENDING JUNE 30 AFTER A FISCAL 1992 LOSS OF 142 A SHARE THE PROJECTION IS BASICALLY IN LINE WITH ANALYSTS' EXPECTATIONS FOR THE DALLASBASED PROVIDER OF EMERGENCY AIRMEDICAL TRANSPORTATION SYSTEMS THE COMPANY ALSO SAID IT EXPECTS REVENUE OF ABOUT 24 MILLION FOR THE FISCAL YEAR UP 25 FROM 192 MILLION A YEAR AGO THE COMPANY NOTED THAT W TERRANCE SCHREIER AIR METHODS' CHIEF EXECUTIVE OFFICER TOLD A RECENT INDUSTRY CONFERENCE THAT THE COMPANY'S PROJECTED GROWTH THROUGH 1995 IS EXPECTED TO EXCEED THE INDUSTRY'S GROWTH RATE HE SAID THE COMPANY EXPECTS TO MEET ANALYSTS' EARNINGS ESTIMATES OF 50 CENTS A SHARE ON REVENUE OF 39 MILLION FOR FISCAL 1994 AND 130 A SHARE ON REVENUE OF 56 MILLION IN FISCAL 1995 9306160008 930616 INSIDER TRADING SPOTLIGHT FRIDAY WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9306160007 930616 TECHNOLOGY BRIEF MOTOROLA INC BUGS ARE BEING WORKED OUT IN COMING WIRELESS MODEMS MOTOROLA INC SCHAUMBURG ILL SAID IT'S WORKING THE BUGS OUT OF A NEW GENERATION OF CREDITCARDSIZED WIRELESS MODEMS THAT WILL LINK HANDHELD COMPUTERS WITH ELECTRONIC MAIL AND OTHER FARFLUNG INFORMATION SERVICES MOTOROLA'S NEW MODEMS WHICH EXIST ONLY AS PROTOTYPES ARE MUCH SMALLER THAN THE CURRENT GENERATION OF WIRELESS MODEMS MOTOROLA SAID THERE ARE STILL TECHNICAL HURDLES TO OVERCOME SUCH AS SHIELDING THE COMPUTER FROM ELECTRONIC INTERFERENCE GENERATED BY THE MODEM BEFORE THE FIRST PRODUCTS APPEAR NEXT YEAR MORE THAN A DOZEN COMPANIES IN THE FIELD OF WIRELESS COMMUNICATIONS SAID THEY'RE WORKING WITH MOTOROLA ON DEVELOPING A NEW STANDARD FOR THE DEVICES INCLUDING APPLE COMPUTER INC HEWLETTPACKARD CO INTERNATIONAL BUSINESS MACHINES CORP AND SONY CORP 9306160006 930616 TECHNOLOGY FDA CLEARS FAST TEST FOR CHLAMYDIA MADE BY HOFFMANN'S UNIT WASHINGTON THE FOOD AND DRUG ADMINISTRATION APPROVED A FAST TEST FOR CHLAMYDIA A SEXUALLY TRANSMITTED DISEASE THAT AFFECTS FOUR MILLION PEOPLE A YEAR IN THE US THE TEST MADE BY ROCHE MOLECULAR SYSTEMS INC OF BRANCHBURG NJ A SUBSIDIARY OF HOFFMANNLA ROCHE INC CAN CATCH CASES THAT MIGHT BE MISSED BY THE CONVENTIONAL CELLCULTURE METHOD OF TESTING IN MEN THE NEW TEST CAN BE CARRIED OUT ON URINE OR WITH A SWAB SAMPLE OF THE URETHRA ON WOMEN IT IS CARRIED OUT WITH A SWAB SAMPLE OF THE CERVIX IT WILL BE MARKETED AS THE AMPLICOR CHLAMYDIA TRACHOMATIS TEST THE FDA SAID CHLAMYDIA GENITALTRACT INFECTIONS ARE COMMON IN SEXUALLY ACTIVE TEENAGERS AND YOUNG ADULTS MEN ARE THE PRIMARY CARRIERS AND CAN TRANSMIT THE INFECTION TO THEIR SEXUAL PARTNERS IF LEFT UNTREATED IN WOMEN THESE INFECTIONS CAN CAUSE SUCH PROBLEMS AS PELVIC INFLAMMATORY DISEASE INFERTILITY AND RESPIRATORY AND EYE INFECTIONS IN BABIES OF INFECTED MOTHERS IF UNTREATED IN MEN THE DISEASE CAN CAUSE EYE INFECTIONS AND STERILITY DETECTING AND TREATING CHLAMYDIA PROMPTLY CAN HAVE AN ENORMOUS EFFECT ON PREVENTING FUTURE REPRODUCTIVE PROBLEMS IN YOUNG WOMEN SAID FDA COMMISSIONER DAVID KESSLER THE FDA SAID THE PRODUCT IS THE FIRST COMMERCIAL USE OF A NEW SCIENTIFIC TOOL THAT MAKES IT POSSIBLE TO COPY THE GENETIC MATERIAL OF A DISEASE QUICKLY TESTING CAN BE COMPLETED IN ABOUT FOUR HOURS COMPARED WITH THREE TO SEVEN DAYS WITH THE CULTURE METHOD 9306160005 930616 DEATH AT THE CLUB IS PAR FOR THE COURSE IN GOLFCRAZED JAPAN PLAYERS SMOKE DRINK GAMBLE CADDIES BULLY AND BERATE IT'S A WONDER ANYONE LIVES BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AN EXHAUSTED TAKAHIRO KAWAKITA ARMS SPLAYED SLUMPS IN A CHAIR AT THE ISHIHARA HILLS GOLF CLUB THE MIDDLEAGED PHOTO COMPANY EMPLOYEE DOESN'T SEEM TO NOTICE THE TELEVISION SET BLARING IN THE CORNER OR THE GRASSHOPPER SNIFFING HIS SWEATSOAKED HANDKERCHIEF CRUMPLED ON THE TABLE BEFORE HIM HE IS GIRDING HIMSELF FOR THE BATTLE AHEAD I DON'T HAVE MUCH TIME TO TALK SAYS THE REDFACED DUFFER WORN OUT FROM THE MORNING'S NINE HOLES OF GOLF I'VE GOT TO BE BACK ON THE COURSE AT 1247 MR KAWAKITA'S SAPPED STATE IS PAR FOR THE COURSE IN JAPAN WHERE THE MINISTRY OF HEALTH HAS DISCLOSED A TERRIBLE SECRET IN THIS COUNTRY GOLF KILLS GOLF IS EIGHT TIMES MORE LIKELY THAN RUNNING IS TO KILL A JAPANESE MAN OVER 60 ACCORDING TO A MINISTRY STUDY IT IS WORSE THAN TENNIS MOUNTAINEERING AND CROQUET WHICH RANKED SURPRISINGLY HIGH I'VE GOT A PERSONAL LIST OF 64 PEOPLE WHO DIED ON THE PUTTING GREENS SAYS KEIZO KOGURE SPORTS DOCTOR AND AUTHOR OF HOW TO DIE EARLY BY PLAYING GOLF HE FIGURES THAT EVERY YEAR ABOUT 4750 GOLFERS TAKE THE FAIRWAY TO HEAVEN A LOOK AT THE STRESSFUL STYLE OF JAPANESE GORUFU AS GOLF IS CALLED HERE SUGGESTS WHY THE NATION HAS SO MANY GOLF DEATHS JAPAN HAS MORE THAN 1900 COURSES AND ALL ARE PACKED ISHIHARA HILLS A PUBLIC CLUB TWO HOURS FROM TOKYO BOOKS PLAYERS UP TO THREE MONTHS AHEAD THERE ARE STILL A FEW VACANCIES IN AUGUST SAYS MANAGER TAKUJI MATSUZAKI EVERYTHING ELSE IS TAKEN EVERYTHING MEANS EVERY MINUTE THE MANAGER A ONETIME HONDA FACTORY SUPERVISOR SPACES HIS FOURSOMES JUST SEVEN MINUTES APART AND THE PRESSURE IS ON TO KEEP THE LINE MOVING NO MATTER WHAT PRODUCTION TIME IS DOWN TO SIX MINUTES AT SOME OTHER CLUBS WHERE RESERVATIONS ARE SOMETIMES MADE SIX MONTHS IN ADVANCE IF YOU MISS YOUR TEEOFF TIME YOU COULD WAIT THREE MORE MONTHS FOR AN OPENING TOKYO TRAVEL AGENT GAIJIRO YAMAGUCHI REGULARLY CRAWLS OUT OF BED AT 4 O'CLOCK FOR AN EARLY MORNING GAME MOST OF THE OTHER CARS ON THE ROAD AT THAT HOUR ARE GOLFERS HE SAYS NOT CRAZY SAYS JOHN STAPLETON A US EXECUTIVE SCHOOLED IN THE JAPANESE WAY OF GOLF IT'S HONOR YOU'VE GOT A COMMITMENT SO YOU GO IN SPITE OF ANYTHING ONCE HE SAYS RAIN WAS BLOWING IN SHEETS AND THE TREES WERE BENT SIDEWAYS FROM THE WIND HIS PARTNERS CAME FOR HIM ANYWAY HE HAS SINCE PLAYED IN SNOW FOG AND GLOOM OF NIGHT WHATEVER THE WEATHER PLAYERS USUALLY RUSH TO GET TO THE CLUB EARLY SO THEY CAN RELAX BEFORE THE MORNING'S ROUND WITH A SCOTCH AND WATER THEN ON TO THE COURSE WHERE CADDIES USUALLY HARDBITTEN OLDER WOMEN AND MANDATORY ON THE LINKS HERE SET THE TONE WITH A PRETEEOFF LECTURE THERE'S NO ETIQUETTE OUT THERE ANYMORE SNAPS ISHIHARA HILLS CADDIE MISS SAKAI WHO DECLINES TO GIVE HER FIRST NAME WITH A FIERCE DAB AT THE MAKEUP BENEATH HER SUN HELMET SHE SNARLS THROUGH HER DENTURES PLAYERS SHOULD BE ABLE TO FINISH IN TWO HOURS THROUGHOUT THE GAME SHE HECTORS PLAYERS TO SPEED UP SLOW DOWN TO STAY IN FORMATION WITH PLAYERS AHEAD AND BEHIND STRESSFUL AS THIS HARDDRIVING CADDIE MAY BE PLAYERS ARE OFTEN BURDENED BY ANOTHER WORRY THEIR PARTNERS YOSHIMITSU FUKUDA FRETS AND SWEATS NEXT TO THE NINTH GREEN AT THE TOKYO COUNTRY CLUB HE IS PLAYING GOLF WITH CLIENTS AND THERE IS PRESSURE TO KEEP THEM HAPPY I FEEL LIKE I OUGHT TO LOSE ON PURPOSE BUT THEN THERE'S A RISK THAT THEY'LL FIGURE IT OUT THE 51YEAROLD BAG MANUFACTURER SAYS HE NERVOUSLY TWISTS AN EMPTY CIGARETTE PACK SAND BURSTS FROM THE BUNKER BEHIND HIM THEN MORE SAND I'D BE GRATEFUL IF THEY COULD GET A GOOD SCORE HE SAYS PLAINTIVELY THE GOLFER EVENTUALLY EMERGES FROM THE SAND TRAP I'M STRUGGLING BUT I'M REALLY ENJOYING IT HE SAYS AND MR FUKUDA A FRESH PACK OF SMOKES IN HIS POCKET HAPPILY SCURRIES FOR THE CLUBHOUSE YOU'VE ONLY GOT 30 MINUTES FOR LUNCH HIS CADDIE BARKS AT HIS BACK HURRY UP LIKE CADDIES LUNCH IS MANDATORY AT THE LINKS AROUND TOKYO EVEN IF PLAYERS FINISH THE FRONT NINE AT 10 AM TRY THIS IT'S DELICIOUS SAYS TSUJIYO TAKAHASHI FROM HIS BEERDRENCHED CLUBHOUSE TABLE HE PROFFERS AN ARTERYCLOGGING SPRIG OF BROCCOLI WRAPPED IN FATTY BACON ENCASED IN ONION SHAVINGS THEN DIPPED IN BATTER AND DEEPFRIED HIS TABLEMATES DIG INTO THICK CURRIES PORK CHUNKS AND PERHAPS IN A NOD TO NUTRITION TOFU MR KAWAKITA POURS ANOTHER SCOTCH AND WATER AND CONTEMPLATES THE GAME'S MYSTERIES SAND TRAPS ARE THE MOST DANGEROUS HE SAYS THROUGH A MIST OF TOBACCO SMOKE YOUR BLOOD PRESSURE RACES IN A BUNKER SHOT AND YOU DIE WALKING ONTO THE GREEN PEOPLE THINK IT'S THE PUTTING THAT KILLS YOU UP BEFORE DAWN PUTTING WHILE IT POURS DRINKS BEFORE NOON FORCED MARCHES LEADEN LUNCHES CHAINSMOKING WHAT ELSE GAMBLING REALLY COMPLICATED GAMBLING HALFWAY THROUGH HIS GAME MR KAWAKITA KNITS HIS BROW HE HAS NINE CONCURRENT BETS ON THIS ROUND AMONG THEM A CLOSETOTHEPIN BET A PUTTING BET A HALFWAYSCORE BET A TOTALSCORE BET THE STRESS ISN'T THE STAKES THEY ARE USUALLY SMALL IT'S THE HONOR THAT IS AT STAKE HIS THE CLIENT'S THE FOURSOME'S HIS COMPANY'S HIS CLIENT'S COMPANY'S AT THIS POINT A GLORIOUS HOLEINONE WOULD SEEM A GAMBLER'S DREAM BUT IN GORUFU IT IS CAUSE FOR MORE ALARM A HOLEINONE OBLIGATES THE GOLFER TO BUY EXPENSIVE GIFTS FOR HIS FELLOW PLAYERS THROW A DRINKING PARTY AND PLANT A COMMEMORATIVE TREE NEAR THE TEE TO MARK HIS JOY SO GOLFERS STRUGGLE TO HIT THE BALL CLOSE TO THE HOLE BUT NOT TOO CLOSE TO EASE THE MIND PLAYERS CAN BUY NEARLY 5000 IN HOLEINONE INSURANCE BEFORE THE GAME FOR ABOUT 100 ONCE THE LAST PUTT IS MADE IT IS OFF TO THE CLUBHOUSE FOR MORE DRINKING THEN MAYBE A PARTY AND DINNER IN TOWN THEN MORE DRINKING ONE TIME I GOT UP AT 4 AM AND GOT HOME AT ONE IN THE MORNING RECALLS MR STAPLETON THE AMERICAN EXECUTIVE AND SO IT IS THAT SLEEP DEPRIVATION BOOZE AND PRESSURES ON THE COURSE MAKE GORUFU A REAL TYPEA AORTAPOPPER FOR OUTOFSHAPE PLAYERS BUT TRY TELLING THAT TO MR KAWAKITA THE DUFFER AT ISHIHARA HILLS BEETFACED AND BREATHLESS HE IS RUNNING BACK TO THE COURSE FOR MORE RELAXATION THIS IS GREAT HE EXCLAIMS TURNING HIS HEAD NERVOUSLY AS THE CLOCK TICKS TOWARD 1246 I'VE GOT A DAY OFF WORK 9306160004 930616 INTERNATIONAL SERBS WHO OPPOSE WAR FACE CRACKDOWN OPPONENTS OF MILOSEVIC GOVERNMENT ALSO ARE TARGETS BY ROGER THUROW STAFF REPORTER OF THE WALL STREET JOURNAL BELGRADE YUGOSLAVIA TWO YEARS AGO ZVONKO OSMANLIC WAS FIGHTING ALONGSIDE FELLOW SERBS IN CROATIA AS PROOF HE ROLLS UP HIS SHIRT TO SHOW THE SCARS FROM A BULLET THAT PASSED THROUGH HIS BACK AND CHEST NOW UNDER POLICE ORDERS TO REMAIN IN BELGRADE HE WATCHES HIS BACK IN HIS OWN HOME WARY OF HIS COMPATRIOTS I CAN'T IMAGINE THAT SOME OF MY OWN PEOPLE CAN ARREST AND MAYBE BEAT ME HE SAYS I FOUGHT ON THE FRONT AS A SERBIAN AS A PATRIOT NOW THEY SAY I AM A TRAITOR AS SERBS CONTINUE TO CONSOLIDATE THEIR BATTLEFIELD GAINS IN CROATIA AND BOSNIAHERZEGOVINA A CRACKDOWN IS UNDER WAY IN SERBIA AGAINST THOSE WHO OPPOSE THE WAR AND THE NATIONALIST GOVERNMENT OF SLOBODAN MILOSEVIC I AM AFRAID I MIGHT BE ARRESTED AGAIN MR OSMANLIC SAYS RECALLING HOW THE POLICE INTERROGATED HIM FOR 14 HOURS AFTER MR DRASKOVIC'S DETENTION I ALSO FEAR FOR MY WIFE AND TWO DAUGHTERS WHILE MR DRASKOVIC THE LEADER OF THE SERBIAN RENEWAL MOVEMENT WHICH BITTERLY OPPOSES MR MILOSEVIC LANGUISHES IN JAIL CHARGED WITH TRYING TO OVERTHROW AUTHORITY REPORTS OF ARRESTS AND HARASSMENT AROUND THE COUNTRY STREAM INTO HIS PARTY'S HEADQUARTERS A 16YEAROLD STUDENT THE SON OF A PARTY MEMBER STEPS OUT OF THE ELEVATOR TO DISPLAY HIS SCARS FROM A BEATING BY POLICE A 70YEAROLD WOMAN SAYS SHE RECEIVES THREATENING PHONE CALLS EVERY NIGHT SUGGESTIONS BY THE SERBIAN PUBLIC PROSECUTOR THAT THE PARTY BE BANNED EVEN HAS THE PARTY'S TRANSLATOR FRIGHTENED THAT HER ARREST IS IMMINENT THE REPRESSION ONCE AGAIN REVEALS THAT MR MILOSEVIC A FORMER COMMUNIST WHOSE SERBIAN NATIONALIST RANTINGS HAVE GIVEN THE WAR ITS DEADLY MOMENTUM IS A MAN OF MANY FACES TO THE OUTSIDE WORLD HE IS SHOWING A NEW MODERATE FACE TELLING MEDIATORS FROM THE UNITED NATIONS AND THE EUROPEAN COMMUNITY THAT HE WANTS THE FIGHTING IN BOSNIA TO END AND THAT HE IS TRYING TO PERSUADE THE BOSNIAN SERBS TO SIGN A PEACE TREATY BUT AT HOME MR MILOSEVIC SHOWS A DIFFERENT FACE SHUTTING DOWN DISSENT LIKE THE COMMUNISTS OF OLD DIPLOMATS IN BELGRADE THE SERBIAN CAPITAL DESPERATELY WANT TO BELIEVE THE MODERATE FACE THUS BEYOND PERFUNCTORY OBJECTIONS MR DRASKOVIC'S TREATMENT HAS GENERATED LITTLE CONCERN IN THE WEST WHEN UN AND EC MEDIATORS RAISED THE ISSUE OF MR DRASKOVIC'S ARREST AT A RECENT MEETING WITH MR MILOSEVIC THEY WERE TOLD IT HAD NOTHING TO DO WITH THE WAR AND THUS WAS NONE OF THEIR BUSINESS ON THE SURFACE SERBIA SEEMS RIPE FOR A POPULAR UPRISING AVERAGE WAGES HAVE FALLEN TO THE EQUIVALENT OF ABOUT 15 A MONTH THE BANKING SYSTEM HAS COLLAPSED WIPING OUT PERSONAL SAVINGS INTERNATIONAL SANCTIONS HAVE CUT OFF THE FLOW OF IMPORTS THE DAYS AND NIGHTS ARE HOT AND HUMID BUT BENEATH THIS STEAMY SURFACE FEAR AND APATHY PREVAIL INSTEAD OF PROVIDING THE SPARK FOR REVOLUTION THE BEATING AND ARREST OF A POPULAR OPPOSITION LEADER PROMPTED ONLY MORE COWERING I'M NOT SURE THERE IS A READINESS OF PEOPLE TO RISK CLASHES WITH POLICE SAYS MILAN KOMNENIC ONE OF MR DRASKOVIC'S DEPUTIES THERE IS ABSOLUTE APATHY AND RESIGNATION BROUGHT ON BY THE ECONOMIC SITUATION PEOPLE ARE REDUCED TO THE EXISTENTIAL LEVEL OF THEIR OWN SURVIVAL SERBIAN RENEWAL LEADERS ADMIT THERE IS LITTLE THEY CAN DO TO MOTIVATE THE POPULATION CONCEDING THAT MR MILOSEVIC HAS EVEN TURNED THE UN'S SANCTIONS TO HIS NATIONALIST ADVANTAGE EVERY NIGHT STATECONTROLLED BELGRADE TELEVISION SPREADS THE MESSAGE THAT THE WHOLE WORLD IS OUT TO DEFEAT THE SERBS AND FOR THE MOST PART SERBS BELIEVE IT IN LOZNICA AN INDUSTRIAL TOWN TWO HOURS WEST OF BELGRADE THE PROTESTS OF SERBIAL RENEWAL MEMBERS ARE DROWNED OUT BY THE THUD OF ARTILLERY JUST ACROSS THE DRINA RIVER IN BOSNIA AND BY THE DRONE OF NORTH ATLANTIC TREATY ORGANIZATION JETS ENFORCING A NOFLY ZONE OVER BOSNIA THE ECONOMIC PAIN IS SEVERE INFLATION HAS SO RAVAGED EARNINGS THAT PEOPLE ARE QUITTING THEIR JOBS BECAUSE THE BUS TICKET TO WORK EXCEEDS THEIR PAY BUT SERB PRIDE IS HURTING WORSE THERE IS AN UPRISING OF NATIONALISM NOT AN UPRISING OF POVERTY SAYS BOZIDAR DEDOVIC A SERBIAN RENEWAL SUPPORTER IN LOZNICA IN 1990 DURING THE CAMPAIGN FOR THE FIRST POSTCOMMUNIST ELECTIONS MR DRASKOVIC ATTRACTED 20000 PEOPLE TO A RALLY NOW HIS SUPPORTERS DON'T DARE LAUNCH A PETITION DRIVE FOR HIS RELEASE PEOPLE WOULD BE AFRAID TO STOP AND SIGN SAYS MR DEDOVIC WE WILL ONLY GO AROUND TO OUR MEMBERS' HOUSES IN BELGRADE SEVERAL PARTIES ALLIED WITH THE SERBIAN RENEWAL MOVEMENT ARE CIRCULATING FREE VUK PETITIONS ON THE STREETS AFTER ONE WEEK THEY HAD COLLECTED 30000 SIGNATURES IN A CITY OF SOME TWO MILLION RESIDENTS SOME SIGNED ENTHUSIASTICALLY VUK IS LIKE MY SON I'VE CRIED FOR THREE DAYS OVER HIM SAYS 56YEAROLD MARIA MIRKOVIC OTHERS SIGNED SELFISHLY I DON'T PARTICULARLY LIKE VUK BUT THIS IS ENOUGH IF IT CAN HAPPEN TO HIM IT CAN HAPPEN TO ME TOMORROW SAYS A UNIVERSITY STUDENT ON HIS WAY TO CLASS BUT FEW BELIEVED THEIR SIGNATURES WOULD HAVE MUCH IMPACT THIS IS A WASTE OF TIME SAYS MILENKO HMELJEVSKI A MEMBER OF THE SERBIAN RENEWAL MOVEMENT WHO SIGNS OUT OF OBLIGATION TO HIS LEADER THE GOVERNMENT CONTROLS 90 OF SERBIA OUTSIDE OF BELGRADE WHAT'S A FEW SIGNATURES IN BELGRADE AT THE PETITION TABLE ON KING PETER STREET TWO OR MORE PEOPLE WALK PAST FOR EVERY PERSON WHO SIGNS SOME SILENTLY DIVERT THEIR EYES FROM THE PICTURES OF MR DRASKOVIC SOME MUMBLE SOME SHOUT VUK CAN ROT IN JAIL FOR 50 YEARS YELLS AN ELDERLY MAN JEALOUSLY CRADLING A LOAF OF FRESHLY BAKED BREAD A HUNDRED YEARS ADDS A MAN WALKING IN THE OPPOSITE DIRECTION THAT'S WHAT HAPPENS TO TRAITORS 9306160003 930616 CANADIAN WAGE AGREEMENTS OTTAWA CANADIAN WAGE SETTLEMENTS IN THE FIRST FOUR MONTHS OF THIS YEAR PROVIDED FOR ANNUAL INCREASES AVERAGING ONLY 05 THE FEDERAL LABOR DEPARTMENT REPORTED TWOTHIRDS OF THE WORKERS COVERED BY MAJOR SETTLEMENTS IN THE JANUARYAPRIL PERIOD FOUND THEIR WAGE RATES FROZEN OR ROLLED BACK THE DEPARTMENT SAID IN THEIR PREVIOUS CONTRACTS WHICH AVERAGED 25 1/2 MONTHS' DURATION COVERED EMPLOYEES RECEIVED INCREASES AVERAGING 32 ANNUALLY 9306160002 930616 LAW CLINTON IS EXPECTED TO CHOOSE HARRIS FOR JUSTICE POSITION BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO NOMINATE JO ANN HARRIS A NEW YORK CITY WHITECOLLAR CRIMINAL DEFENSE LAWYER TO HEAD THE JUSTICE DEPARTMENT'S CRIMINAL DIVISION MS HARRIS 60 ALSO IS A PROFESSOR AT PACE UNIVERSITY SCHOOL OF LAW IN WHITE PLAINS NY SHE WORKED FOR THE JUSTICE DEPARTMENT FROM 1974 TO 1983 IN VARIOUS CAPACITIES INCLUDING CHIEF OF THE FRAUD SECTION AND EXECUTIVE ASSISTANT US ATTORNEY IN THE SOUTHERN DISTRICT OF NEW YORK IN HER PRIVATE PRACTICE MS HARRIS REPRESENTS CLIENTS IN TAX SECURITIES ANTITRUST AND FRAUD CASES SHE WAS A JOURNALISM GRADUATE FROM IOWA STATE UNIVERSITY IN 1955 AND GRADUATED FROM NEW YORK UNIVERSITY SCHOOL OF LAW IN 1972 MR CLINTON ALSO IS EXPECTED TO APPOINT DORIS MEISSNER AS IMMIGRATION AND NATURALIZATION SERVICE COMMISSIONER MS MEISSNER CURRENTLY DIRECTOR OF THE IMMIGRATION POLICY PROJECT AT THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE WORKED AT THE JUSTICE DEPARTMENT ON IMMIGRATION ISSUES FROM 1974 THROUGH 1986 INCLUDING A STINT AS ACTING INS COMMISSIONER SEPARATELY MR CLINTON SAID HE INTENDS TO NOMINATE JEFFREY GARTEN A FORMER PARTNER AT BLACKSTONE GROUP AN INVESTMENT BANKING FIRM AS UNDERSECRETARY FOR INTERNATIONAL TRADE AT THE COMMERCE DEPARTMENT FILLING AN IMPORTANT VOID THE NOMINATION IS AN INTEGRAL STEP TOWARD ELEVATING THE DEPARTMENT'S ROLE IN TRADE MATTERS COMMERCE SECRETARY RON BROWN'S DIFFICULTY FILLING THE TRADE POST AND THE RECENT WITHDRAWAL OF HIS NOMINEE FOR DEPUTY SECRETARY FORMER CRAY RESEARCH INC CHIEF EXECUTIVE JOHN ROLLWAGEN HAD HURT THE AGENCY'S STATURE MR GARTEN WOULD BE YET ANOTHER ADMINISTRATION OFFICIAL PLUCKED FROM WALL STREET HE IS A FORMER PARTNER OF DEPUTY TREASURY SECRETARY ROGER ALTMAN AND IS CURRENTLY A FINANCE AND ECONOMICS PROFESSOR AT COLUMBIA UNIVERSITY MR GARTEN OPENED THE JAPANESE OFFICE OF SHEARSON LEHMAN BROTHERS INC AN AMERICAN EXPRESS CO SUBSIDIARY AND LIVED IN TOKYO FOR THREE YEARS HE RECENTLY PRESENTED A SOMBER VIEW OF US RELATIONS WITH JAPAN AND GERMANY IN A BOOK CALLED A COLD PEACE IN HIS POST MR GARTEN WOULD HEAD THE INTERNATIONAL TRADE ADMINISTRATION MR BROWN WAS RUNNING INTO TROUBLE WOOING PEOPLE FOR THAT JOB WITH SEVERAL TRADE EXPERTS TURNING DOWN THE OFFER OR PULLING THEIR NAMES FROM CONSIDERATION THEY INCLUDED GOLDMAN SACHS & CO EXECUTIVE ROBERT HORMATS MASSACHUSETTS INSTITUTE OF TECHNOLOGY ECONOMIST RUDIGER DORNBUSCH AND MIT SLOAN SCHOOL DEAN LESTER THUROW ASRA Q NOMANI CONTRIBUTED TO THIS ARTICLE 9306160001 930616 DERIVATIVE MAYBE BUT SATISFYING IF VIEWED ON AN EMPTY STOMACH BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK M'M M'M GOOD LUCK IF YOU'RE NOT ANDY WARHOL ARTIST KIRK MUCKLE FIGURED THAT HE HAD STUMBLED ONTO A NEW METHOD OF EXPRESSION ONE DAY AT HOME WHEN HE ACCIDENTALLY KICKED AN EMPTY CAMPBELL SOUP CAN CHICKEN NOODLE THAT THEN ROLLED ACROSS A STILLDRYING PAINTING ON THE FLOOR I JUST THOUGHT THE WAY THE CAN ROLLED ACROSS THE PAINT LOOKED KIND OF COOL SAYS MR MUCKLE THE COLORS BLENDED VERY NICELY INSPIRED MR MUCKLE BEGAN ROLLING OTHER CANS ACROSS HIS PAINTINGS OF COURSE ANOTHER ARTIST HAS ALREADY USED CAMPBELL SOUP TO GRAB MORE THAN 15 MINUTES OF FAME ANDY WARHOL IS NOT THE REASON I DID THIS I JUST HAPPEN TO EAT A LOT OF SOUP SAYS MR MUCKLE WHO EVENTUALLY BEGAN NAILING THE CAMPBELL CANS THEMSELVES TO HIS PAINTINGS PROUD OF HIS WORK BUT ADMITTEDLY ANGLING FOR SOME INTEREST FROM THE CAMPBELL MUSEUM MR MUCKLE INVITED CAMPBELL SOUP CO EXECUTIVES TO ATTEND AN EXHIBITION OF HIS WORK IN NEW YORK THE INVITATION SIMMERED AT CAMPBELL'S HOME OFFICE IN CAMDEN NJ FOR SIX WEEKS IN MIDMAY AFTER THE SHOW HAD CLOSED THE COMPANY SENT BACK ITS RESPONSE ALTHOUGH WE WISH YOU NO ILL WILL THE COMPANY SAID IT DEMANDED THAT SUCH UNAUTHORIZED USE OF OUR TRADEMARKS BE DISCONTINUED IN ANY FUTURE ARTWORK CALLING THE CAMPBELL SOUP LABEL THE MOST FAMOUS TRADEMARK IN AMERICA CAMPBELL SAID VIGILANT ENFORCEMENT OF OUR RIGHTS REQUIRES THAT WE ACT TO AVOID ANY CONFUSION AT LEAST ONE LAWYER THINKS THAT BECAUSE MR MUCKLE USES THE ACTUAL CANS USUALLY CHICKEN NOODLE OR TOMATO HE MAY NOT BE IN VIOLATION OF ANY LAWS THERE COULD BE AN ARGUMENT THAT HE DIDN'T VIOLATE COPYRIGHT LAW BECAUSE HE DIDN'T COPY ANYTHING SAYS PAUL HANLY A NEW YORK COPYRIGHT AND TRADEMARK LITIGATOR AND HE'S NOT USING THE TRADEMARK IN A MANNER TO DESIGNATE HIS PRODUCT SO THERE WOULDN'T BE ANY LIABILITY THERE EITHER CAMPBELL SAYS ITS POSITION ISN'T THE SAME AS ITS STAND ON MR WARHOL'S USE OF THE CAN IMAGES IN HIS POP ART WE COMMISSIONED HIM TO DO WORK FOR US IN 1985 SAYS A CAMPBELL SPOKESMAN AS FOR MR MUCKLE HE PLANS TO CONTINUE HAVING SOUP CANS IN HIS ART AND AT HIS DINNER TABLE I HAVE SOUP ALMOST EVERY DAY DURING THE WINTER AND I DON'T WANT TO THROW THE CANS AWAY I SEE IT AS HELPING THE ENVIRONMENT 9306160114 930510 DANGER INDOCTRINATION SCIENCE WITHOUT GOD BY PHILLIP E JOHNSON ONCE THEOLOGY WAS THE QUEEN OF THE SCIENCES LATELY IT HAS BEEN REPLACED BY PHYSICS BUT THERE ARE SIGNS THAT THE PHYSICISTS WANT TO BECOME THEOLOGIANS BOOKS BY LEADING PHYSICISTS BEARING TITLES LIKE THE MIND OF GOD THE GOD PARTICLE AND THEORIES OF EVERYTHING NOW CLAIM FOR PHYSICS THE POWER TO DESCRIBE ALL OF REALITY AMBITIONS LIKE THIS HAVE IMPORTANT CONSEQUENCES AND INVITE THE REST OF US TO CONSIDER WHETHER THE OUTLOOK OF A PARTICULAR GROUP OF SCIENTISTS IS SUITABLE FOR EVERYBODY ONE OF THE BEST OF THESE BOOKS IS STEVEN WEINBERG'S DREAMS OF A FINAL THEORY PUBLISHED RECENTLY BY PANTHEON MR WEINBERG RECEIVED THE NOBEL PRIZE IN 1979 FOR HIS ROLE IN DEVELOPING A UNIFIED THEORY OF THE ELECTROMAGNETIC AND WEAK NUCLEAR FORCES A MAJOR STEP TOWARD THE FINAL THEORY OF HIS TITLE THE STANDARD MODEL OF ELEMENTARY PARTICLES NOW CONSISTS OF MR WEINBERG'S ELECTROWEAK THEORY AND QUANTUM CHROMODYNAMICS WHICH DESCRIBE THE STRONG NUCLEAR FORCE GRAVITY THE FOURTH KNOWN FUNDAMENTAL FORCE IS SUBJECT TO THE VERY DIFFERENT PRINCIPLES OF GENERAL RELATIVITY SOME PHYSICISTS BELIEVE THAT IT MAY BE POSSIBLE TO FORMULATE A THEORY UNIFYING ALL FOUR FORCES A GOAL FREQUENTLY LABELED THE HOLY GRAIL OF PHYSICS OR THE THEORY OF EVERYTHING BIG BANG COSMOLOGY PROVIDES THE CONCEPTUAL BASIS FOR THE HOPE THAT A FINAL THEORY EXISTS AND ALSO FOR THE NOTION THAT SUCH A THEORY WOULD BE THE MOST IMPORTANT PIECE OF KNOWLEDGE THAT HUMANS HAVE EVER DISCOVERED AT THE EARLIEST INSTANT OF THE BIG BANG WHEN THE COSMOS WAS COMPRESSED INTO A SINGLE POINT CONDITIONS WERE SO HOT AND DENSE THAT A SYMMETRY AMONG ALL THE FORCES MAY HAVE PREVAILED AT THAT MOMENT ONLY THE THEORY AND THE PARTICLES ARE SUPPOSED TO HAVE EXISTED AND SCIENCE ASSUMES THAT NOTHING FUNDAMENTALLY NEW HAS ENTERED THE COSMOS SINCE THAT IS WHY PHYSICISTS SAY THAT A UNIFIED PARTICLE THEORY WOULD IN PRINCIPLE GOVERN EVERYTHING THAT HAS HAPPENED WHICH MAKES IT IMPORTANT ENOUGH TO JUSTIFY THE 8 BILLION AND CLIMBING TO BE SPENT ON THE TEXAS SUPERCOLLIDER THE SUPERCOLLIDER IS EXPECTED TO CONFIRM THE ELECTROWEAK THEORY ONE WAY OR ANOTHER AND TO PROVIDE A BASIS FOR THE NEXT STEP TOWARD A GRAND UNIFIED THEORY AS SCIENCE WRITING DREAMS OF A FINAL THEORY HAS MANY VIRTUES BUT FOR MOST READERS THE IMPORTANT THING WILL BE ITS PHILOSOPHICAL MESSAGE ALTHOUGH MR WEINBERG PROFESSES TO FIND PHILOSOPHY USELESS IN PHYSICS HE ENTHUSIASTICALLY PROMOTES HIS OWN PHILOSOPHY CALLED REDUCTIONISM REDUCTIONISTS ASSERT THAT CONSCIOUSNESS IS A PRODUCT OF BRAIN CHEMISTRY THAT THE LIFE PROCESSES ARE DIRECTED BY THE DNA GENETIC PROGRAM THAT THE DNA CODE ITSELF IS REDUCIBLE TO THE LAWS GOVERNING THE PHYSICS AND CHEMISTRY OF LIFELESS MATTER AND THAT EVERYTHING THAT HAS HAPPENED IN OUR UNIVERSE IS ULTIMATELY TRACEABLE TO THE INITIAL CONDITIONS OF THE BIG BANG REDUCTIONISM IS UNDERSTANDABLY APPEALING TO PARTICLE PHYSICISTS SINCE IT MAKES THEIR DISCIPLINE MORE FUNDAMENTAL THAN OTHERS AND FOR THE SAME REASON IT IS DISTASTEFUL TO OTHER SCIENTISTS WHO THINK THAT THESE PHYSICISTS ARE A BIT TOO FULL OF THEMSELVES THERE ARE MANY ANTIREDUCTIONISTS IN SCIENCE ESPECIALLY IN BIOLOGY WHO SPEAK OF EMERGENT PROPERTIES OF ORGANISMS THAT CANNOT BE FULLY UNDERSTOOD AS PRODUCTS OF DNA OR CHEMISTRY SUCH STATEMENTS DO NOT REALLY CONTRADICT REDUCTIONISM HOWEVER IF THEY MEAN ONLY THAT SCIENCE DOES NOT YET HAVE A REDUCTIONIST UNDERSTANDING OF THE EMERGENT PRINCIPLES UNFORTUNATELY ANY BIOLOGIST WHO INVOKES SOME MYSTICAL ELEMENT IN THE LIFE PROCESSES THAT IS NOT DERIVED FROM CHEMISTRY OR PHYSICS IS DEEMED GUILTY OF VITALISM WHICH IN CONTEMPORARY SCIENCE IS A THOUGHTCRIME ONLY MARGINALLY LESS REPREHENSIBLE THAN OUTRIGHT CREATIONISM THE COMMITMENT OF SCIENCE TO THE FAITH THAT NATURE IS A PERMANENTLY CLOSED SYSTEM OF MATERIAL CAUSES AND EFFECTS ALLOWS NO COHERENT ALTERNATIVE TO REDUCTIONISM AND SO REDUCTIONISM DOMINATES DESPITE THE MUTTERING MR WEINBERG PROMOTES REDUCTIONISM NOT ONLY WITHIN SCIENCE BUT AS A WORLD VIEW AIMED AT PRODUCING A RATIONAL SOCIETY HE HOPES THAT DISCOVERY OF A UNIFIEDPARTICLE THEORY WILL CONVINCE THE PUBLIC THAT NATURE IS GOVERNED BY IMPERSONAL LAWS AND THUS DISCREDIT IRRATIONAL BELIEFS WHICH RANGE FROM RELATIVELY HARMLESS SUPERSTITIONS LIKE ASTROLOGY TO IDEOLOGIES OF THE MOST VICIOUS SORT HE DOES NOT SAY EXPLICITLY WHAT VICIOUS IDEOLOGIES HE HAS IN MIND HE IS AFTER ALL TRYING TO PERSUADE AMERICANS TO PAY FOR THE SUPERCOLLIDER BUT HE LEAVES CAREFUL READERS IN LITTLE DOUBT THE DARK FORCES OF RELIGIOUS ENTHUSIASM ARE GATHERING STRENGTH IN ASIA AND AFRICA HE WARNS AND REASON AND TOLERANCE ARE NOT SAFE EVEN IN THE WEST REDUCTIONIST SCIENCE MUST COME TO THE RESCUE OF RATIONALITY SUPPLANTING RELIGIOUS VISIONS WITH A CHEERLESS PROSPECT OF AN IMPERSONAL UNIVERSE THAT EXISTS FOR NO PURPOSE BUT HOW TOLERANT DO THE TRIUMPHANT SCIENTISTS PLAN TO BE TOWARD THOSE WHO DON'T THINK THAT REDUCTIONIST NATURALISM IS A RATIONAL PHILOSOPHY MANY WELLEDUCATED PEOPLE THINK THAT THERE IS AN INTELLIGENCE BEHIND THE COSMOS AND THAT LIFE AND CONSCIOUSNESS CANNOT BE EXPLAINED IN TERMS OF PHYSICS AND CHEMISTRY ALONE SUCH PEOPLE MAY WANT TO DISPUTE UNDEMONSTRATED REDUCTIONIST CLAIMS ABOUT SUCH SUBJECTS AS THE ORIGIN OF LIFE AND THE REDUCIBILITY OF MENTAL LIFE TO CHEMICAL REACTIONS IN THE BRAIN MAY THESE PERSONS OBTAIN A FAIR HEARING THE ANSWER SEEMS TO BE NO THEY MAY NOT MR WEINBERG LIKE MANY OF HIS COLLEAGUES REGARDS DISSENT FROM NATURALISM AS A REPUDIATION OF RATIONALITY HE CONCEDES THAT ONE OF THE EFFECTS OF REDUCTIONIST SCIENCE INDEED ONE OF ITS AIMS IS TO DISCREDIT THEISTIC RELIGION NONETHELESS HE INSISTS THAT IT IS SIMPLY NOT THE BUSINESS OF THE PUBLIC SCHOOLS TO CONCERN THEMSELVES ONE WAY OR THE OTHER WITH THE RELIGIOUS IMPLICATIONS OF SCIENTIFIC THEORIES WITHIN SCIENCE ITSELF OF COURSE ONLY AN UNQUESTIONED NATURALISM IS ALLOWED THAT MEANS THAT THE SCIENTIFIC COMMUNITY CLAIMS THE SOLE RIGHT TO DECIDE FOR THE NATION THAT GOD IS A PRODUCT OF THE HUMAN IMAGINATION RATHER THAN THE ULTIMATE REALITY BEHIND THE COSMOS WHATEVER ELSE ONE MAY SAY ABOUT THIS CLAIM TO POWER IT DOES NOT REFLECT EITHER UNCERTAINTY OR TOLERANCE THERE IS NOTHING WRONG WITH THE DESIRE TO DISCOURAGE FANATICISM AND TO BRING AS MUCH OF LIFE AS POSSIBLE UNDER THE INFLUENCE OF REASON ONE THING THE 20TH CENTURY HAS TAUGHT US HOWEVER IS THAT FANATICISM CAN AS EASILY BE FOUNDED IN SCIENTIFIC ATHEISM AS IN SOME TWISTED UNDERSTANDING OF THE WILL OF GOD MR WEINBERG THINKS THAT PEOPLE WILL BECOME MORE RATIONAL IF SCIENCE CAN CONVINCE THEM THAT NATURE IS GOVERNED BY IMPERSONAL LAWS BUT THESE LAWS APPLY ONLY TO MATTER AND THE FORCES THAT OPERATE UPON IT NATURALISTIC METAPHYSICS RELEGATES QUESTIONS LIKE HOW WE SHOULD LIVE OR WHAT WE SHOULD VALUE TO THE REALM OF SUBJECTIVE OPINION IT PROVIDES NO SACRED COMMON GROUND OTHER THAN A SUPPOSEDLY VALUEFREE SCIENCE TO UNITE DIFFERING HUMAN GROUPS AND GIVE THEM A FOUNDATION TO REASON FROM IS IT ANY WONDER THAT THE GREAT UNIVERSITIES THAT ARE PERMEATED BY THIS PHILOSOPHY ARE THEMSELVES BEING TORN APART BY GROUPS THAT DEMAND SEPARATE ACADEMIC DEPARTMENTS TO PROMOTE THEIR IDEOLOGIES DREAMS OF A FINAL THEORY IS A GOOD BOOK AND AN HONEST ONE IT PROVIDES NOT A VISION OF THE FUTURE HOWEVER BUT A LAST FLICKER OF THE DYING FLAME OF ENLIGHTENMENT RATIONALISM THERE WAS A TIME WHEN IT SEEMED REASONABLE TO THINK THAT THE DEATH OF GOD WOULD USHER IN AN AGE OF REASON A FEW RELICS FROM THAT TIME OF DREAMING ARE STILL WITH US MR JOHNSON IS A PROFESSOR OF LAW AT BOALT HALL THE LAW SCHOOL OF THE UNIVERSITY OF CALIFORNIA AT BERKELEY SEE RELATED LETTERS LETTERS TO THE EDITOR SCIENCE AND RELIGION STILL SEARCHING WSJ JUNE 16 1993 9305100060 YY93 MM06 9306150156 930615 INTERNATIONAL FRENCH SEEK GERMAN EXPLANATION OF ACTIONS IN US TRADE DISPUTE BY BOB HAGERTY STAFF REPORTER OF THE WALL STREET JOURNAL BRUSSELS THE FRENCH GOVERNMENT DEMANDED AN EXPLANATION FOR WHAT IT CALLED GERMANY'S BREACH OF SOLIDARITY WITH OTHER EUROPEAN COMMUNITY MEMBERS IN A TRADE DISPUTE WITH THE US MEANWHILE OFFICIALS IN BONN AND AT EC HEADQUARTERS IN BRUSSELS PLAYED DOWN THE INTRAEC SQUABBLE SAYING IT HAD BEEN BLOWN OUT OF PROPORTION BUT THE INCIDENT APPARENTLY CAUSED BY A FAILURE OF COMMUNICATION WITHIN THE EC COMPLICATES THE COMMUNITY'S EFFORTS TO UNITE BEHIND A COMMON POSITION TO BREAK THE DEADLOCK IN THE SOCALLED URUGUAY ROUND OF WORLD TRADE TALKS THE SPAT COMES JUST THREE WEEKS BEFORE THE SUMMIT MEETING OF MAJOR INDUSTRIAL NATIONS IN TOKYO WHERE PROGRESS ON TRADE IS CONSIDERED VITAL TO REVIVING BUSINESS CONFIDENCE COINCIDENTALLY AMERICAN TELEPHONE & TELEGRAPH CO ANNOUNCED ITS BIGGEST ORDER EVER FROM DEUTSCHE BUNDESPOST TELEKOM GERMANY'S NATIONAL PHONE COMPANY AT&T AND A GERMAN PARTNER QUANTE AG WILL SUPPLY ADVANCED FIBEROPTIC TRANSMISSION GEAR VALUED AT 180 MILLION MARKS 111 MILLION FOR A NEW NETWORK LINKING 500000 PHONE SUBSCRIBERS IN A MULTIMEDIA VOICE DATA AND VIDEO NETWORK FRANCE'S ALCATEL IS A MAJOR SUPPLIER OF EQUIPMENT TO DBT THROUGH ITS GERMAN SUBSIDIARY A FORMER ITT CORP COMPANY THE BROUHAHA ERUPTED LATE LAST WEEK WHEN THE US DISCLOSED AN AGREEMENT WITH GERMANY UNDER WHICH THE TWO ARE TO REFRAIN FROM IMPOSING PENALTIES AGAINST ONE ANOTHER IN THE ECUS DISPUTE OVER TRADE IN TELECOMMUNICATIONS EQUIPMENT NEWS OF THE USGERMAN UNDERSTANDING CAME JUST TWO DAYS AFTER GERMANY VOTED IN FAVOR OF EC COUNTERSANCTIONS AGAINST THE US WITHOUT SAYING IT DIDN'T INTEND TO JOIN OTHER EC MEMBERS IN APPLYING THOSE SANCTIONS THE EC COMMISSION HAS ASKED BONN TO EXPLAIN AND THREATENED LEGAL ACTION AGAINST GERMANY FOR AN ALLEGED BREACH OF EC TREATY OBLIGATIONS FRANCE'S FOREIGN MINISTRY IN A STATEMENT SAID FRANCE HAS ASKED THE EUROPEAN COMMISSION TO FULLY CLARIFY THIS MATTER WE CANNOT IMAGINE THAT SUCH A BREACH OF COMMUNITY SOLIDARITY COULD BE APPROVED FRANCE WANTS THE EC TO TAKE A TOUGHER LINE AGAINST THE US IN TRADE DISPUTES BUT GERMAN OFFICIALS DENIED THAT THEIR ENTENTE WITH THE US IS A SIGN OF DISLOYALTY TO THE EC BONN OFFICIALS CITING A 1954 TREATY THAT BARS GERMANY FROM TRADE DISCRIMINATION AGAINST THE US SAID THEY NEVER AGREED TO APPLY A PROVISION OF THE EC'S RECENT UTILITIES DIRECTIVE GIVING EUROPEAN SUPPLIERS AN EDGE IN BIDDING FOR TELECOMMUNICATIONSEQUIPMENT ORDERS IT WAS THE UTILITIES DIRECTIVE THAT SET OFF THE USEC DISPUTE THE US RETALIATED AGAINST THE DIRECTIVE LAST MONTH BY BARRING EC COMPANIES FROM BIDDING FOR CERTAIN US CONTRACTS A WEEK AGO THE EC RESPONDED WITH SIMILAR PENALTIES AGAINST US COMPANIES WHILE THIS DISPUTE WAS PLAYED OUT IN PUBLIC GERMAN OFFICIALS QUIETLY APPROACHED THE US GOVERNMENT OFFICIALS FROM BOTH COUNTRIES SAID GERMAN ECONOMICS MINISTER GUENTER REXRODT TOLD US TRADE REPRESENTATIVE MICKEY KANTOR THAT GERMANY WOULDN'T DISCRIMINATE AGAINST US TELECOMMUNICATIONS SUPPLIERS THE OFFICIALS SAID WE SAID WELL THAT'S VERY INTERESTING' AN AIDE TO MR KANTOR RECALLED US OFFICIALS THEN ASKED THE GERMANS TO PUT THEIR PROMISE INTO WRITING AND BOTH SIDES AGREED TO DROP SANCTIONS THE LARGELY SYMBOLIC SANCTIONS REMAIN IN FORCE BETWEEN THE US AND OTHER EC MEMBERS A SENIOR GERMAN OFFICIAL SPEAKING ON CONDITION OF ANONYMITY SAID MR KANTOR STIRRED UP TROUBLE BETWEEN BONN AND ITS EC PARTNERS BY TRUMPETING THE USGERMAN AGREEMENT THURSDAY IN TESTIMONY BEFORE THE US CONGRESS AND IN A NEWS RELEASE BUT A US OFFICIAL ALSO ANONYMOUSLY SAID THE US HAD TOLD BONN IT WOULD MAKE THE DEAL PUBLIC THE GERMAN OFFICIAL COULDN'T EXPLAIN WHY GERMANY VOTED FOR SANCTIONS AGAINST THE US LAST WEEK EVEN THOUGH IT DIDN'T INTEND TO APPLY THEM IN BRUSSELS SOME EC OFFICIALS SUSPECT THE US OF USING ITS SEPARATE PEACE WITH GERMANY AS PART OF A STRATEGY TO DIVIDE AND RULE THE COMMUNITY THAT'S RIDICULOUS THE US OFFICIAL SAID WE DIDN'T TAKE THE INITIATIVE ON THIS KAROLINE DURR CONTRIBUTED TO THIS ARTICLE 9306150155 930615 PEOPLE PATTERNS BY ALAN L OTTEN UNWED MOTHERHOOD WAS GAINING ACCEPTANCE LONG BEFORE MURPHY BROWN TWO UNIVERSITY RESEARCHERS FIND WITH MORE THAN ONEFOURTH OF ALL BIRTHS NOW OCCURRING OUTSIDE OF MARRIAGE DEANNA PAGNINI OF DUKE UNIVERSITY AND RONALD RINDFUSS OF THE UNIVERSITY OF NORTH CAROLINA DECIDED TO SEE HOW THE PUBLIC VIEWED THIS DEVELOPMENT IN CHILDBEARING BEHAVIOR THEY TRACKED ANSWERS FROM BIG SAMPLES OF WHITE MEN AND WOMEN TO THREE QUESTIONS ASKED IN ROPER ORGANIZATION SURVEYS FROM 1974 TO 1989 IN 1974 28 OF THE MEN AND 24 OF THE WOMEN AGREED THAT IT SHOULD BE LEGAL FOR ADULTS TO HAVE CHILDREN WITHOUT GETTING MARRIED WHILE ABOUT TWOTHIRDS OF EACH SEX DISAGREED THE REST WERE UNSURE BY 1989 43 OF THE MEN AND WOMEN AGREED AND THE DISAPPROVING SHARE HAD DROPPED BELOW HALF A SECOND QUESTION SOUGHT REACTION TO THE STATEMENT THAT THERE IS NO REASON WHY SINGLE WOMEN SHOULDN'T HAVE CHILDREN AND RAISE THEM IF THEY WANT TO IN 1974 DISAGREEING WOMEN OUTNUMBERED AGREEING ONES MORE THAN 2 TO 1 BY 1985 THE LAST TIME THE QUESTION WAS ASKED SLIGHTLY MORE WOMEN AGREED THAN DISAGREED THE PATTERN FOR MALES WAS SIMILAR ABOUT 57 OF THE WOMEN AND HALF OF THE MEN SAID IN 1985 THEY WOULD ACCEPT THE SITUATION EVEN THOUGH THEY WOULD BE UNHAPPY ABOUT IT SLIGHT INCREASES FROM THE 1974 SURVEY THE RESEARCHERS SAY THE SURVEY INCLUDED TOO FEW BLACKS FOR DETAILED ANALYSIS BUT THEY SAY THE SAME GENERAL TREND CLEARLY HELD AMONG BLACKS AND ACCEPTANCE LEVELS WERE MUCH HIGHER THAN AMONG WHITES THE ELDERLY POPULATION IS GROWING FASTEST IN THE DEVELOPING WORLD FOR DECADES DEMOGRAPHERS HAVE NOTED THE RAPID RISE IN NUMBERS AND PROPORTION OF PEOPLE 65 AND OVER IN THE US AND OTHER DEVELOPED COUNTRIES PARTICULARLY THE GROWTH IN THE OLDEST OLD THOSE 80 AND OVER AND THE DEVELOPED COUNTRIES OF EUROPE AND NORTH AMERICA STILL HAVE THE HIGHEST SHARES OF OLD FOLKS BUT A NEW CENSUS BUREAU REPORT FINDS THE FASTEST RATES OF GROWTH IN THE NUMBER OF OLD PEOPLE COMING IN LESSDEVELOPED NATIONS WHICH ACCOUNT FOR ALMOST TWOTHIRDS OF THE WORLD'S MONTHLY NET RISE OF 800000 ELDERLY THE GROWTH RATE STARTED TO RISE IN THE 1960S THE CENSUS BUREAU SAYS AND EXCEPT FOR A PROJECTED BRIEF PAUSE AROUND THE TURN OF THE CENTURY WILL CONTINUE RISING STEADILY AT LEAST THROUGH 2030 REDUCED DEATH RATES AT ALL AGES MEAN MORE PEOPLE REACH OLD AGE SAYS KEVIN KINSELLA COAUTHOR OF THE REPORT WITH CYNTHIA TAEUBER BETTER NUTRITION AND FEWER DEATHS FROM INFECTIOUS AND PARASITIC DISEASES HAVE BEEN PARTICULARLY IMPORTANT TO BE SURE CONTINUING HIGH FERTILITY RATES IN DEVELOPING COUNTRIES MEAN THE ELDERLY WILL STILL CONSTITUTE A SMALLER SHARE OF THE TOTAL POPULATION THERE THAN IN DEVELOPED COUNTRIES BUT THE CENSUS BUREAU ANALYSTS STILL CONSIDER SURPRISING THE SPEED WITH WHICH THE NUMBER OF THIRD WORLD OLDSTERS IS GROWING THE PROPORTION OF THOSE 65 AND OLDER IS EXPECTED TO DOUBLE IN LATIN AMERICA AND ASIA BETWEEN NOW AND 2025 ALONG WITH RATHER MODEST GROWTH IN THE OLD FOLKS' SHARE OF AFRICAN AND NEAR EASTERN POPULATIONS THE OLDEST OLD WILL ALSO CONTINUE TO INCREASE IN MOST COUNTRIES THOUGH AT WIDELY DIFFERING RATES THE 80ANDOVER GROUP NOW MAKES UP 22 OF THE DEVELOPED WORLD'S ELDERLY AND 12 OF THE DEVELOPING WORLD'S THE CENSUS BUREAU ESTIMATES THE GLOBAL 65ANDOVER POPULATION AT 342 MILLION IN 1992 62 OF THE TOTAL CALIFORNIA HISPANICS ARE PREDOMINANTLY YOUNG PORTENDING FURTHER INCREASES IN THEIR SHARE OF THE STATE'S POPULATION UNIVERSITY OF CALIFORNIA DEMOGRAPHERS ASSEMBLED 1990 CENSUS BUREAU DATA TO DRAW A FULLER PORTRAIT OF CALIFORNIA HISPANICS THEY SHOW MORE THAN ONEQUARTER ARE UNDER 15 YEARS OLD AND MORE THAN HALF UNDER 25 MUCH HIGHER PROPORTIONS THAN FOR NONHISPANIC WHITES NONHISPANIC BLACKS OR ASIANS THE CENSUS BUREAU FOUND 7557500 HISPANICS LIVING IN THE STATE IN 1990 ALMOST 26 OF THE TOTAL POPULATION UP FROM 19 IN 1980 NOT SURPRISINGLY FOUR OUT OF FIVE HISPANICS IN CALIFORNIA IN 1990 CAME FROM MEXICO WHILE AN ADDITIONAL 11 CAME FROM OTHER CENTRAL OR SOUTH AMERICAN COUNTRIES THE DATA SHOW THE HISPANIC POPULATION TO BE OVERWHELMINGLY URBAN AND POOR FORTYFIVE PERCENT LIVE IN CENTRALCITY AREAS AND ALMOST ONEFOURTH LIVE BELOW THE POVERTY LINE THE HIGHEST LEVEL OF ANY MINORITY PERHAPS CONTRARY TO POPULAR IMAGE ONLY 8 OF CALIFORNIA HISPANICS ARE FARM LABORERS AND ONLY 2 ARE DOMESTICS OVER ONEFOURTH WORK AS UNSKILLED LABORERS 13 AS SKILLED LABORERS 21 IN CLERICAL OR SALES JOBS AND 17 IN NONDOMESTIC SERVICE EMPLOYMENT SIX PERCENT ARE MANAGERS OR ADMINISTRATORS ANOTHER 6 HOLD PROFESSIONAL OR TECHNICAL JOBS FOUR OUT OF FIVE MEN SAY CASUAL ATTIRE IS MORE ACCEPTABLE IN THE WORKPLACE TODAY THAN IN THE PAST A NATIONWIDE SAMPLING FOR MEN'S HEALTH MAGAZINE FINDS LIFE AFTER DEATH FOUR OUT OF FIVE ADULTS SAY THEY BELIEVE IN AN AFTERLIFE A SHARE THAT HAS CHANGED LITTLE IN 20 YEARS FINDS AN ANALYSIS OF SURVEY RESULTS BY TWO PENNSYLVANIA STATE UNIVERSITY SOCIOLOGISTS 9306150154 930615 WHO'S NEWS DNA PLANT TECHNOLOGY CORP DNA PLANT TECHNOLOGY CORP CINNAMINSON NJ STEPHEN M PRICHARD 43 YEARS OLD WAS NAMED VICE PRESIDENT FOR HUMAN RESOURCES AND ADMINISTRATION AT THIS AGRICULTURAL BIOTECHNOLOGY COMPANY MR PRICHARD WHOSE POSITION IS NEW HAD BEEN DIRECTOR OF HUMAN RESOURCES AND ADMINISTRATION 9306150153 930615 INTERNATIONAL BRAZILIAN OFFICIAL MAPS FEDERAL PLAN AGAINST INFLATION BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL RIO DE JANEIRO FINANCE MINISTER FERNANDO HENRIQUE CARDOSO UNVEILED A PLAN THAT PLACES THE ONUS FOR REDUCING INFLATION AND PUTTING BRAZIL'S TROUBLED ECONOMY BACK ON TRACK ON THE GOVERNMENT'S SHOULDERS ESCHEWING SUCH ANTIMARKET MEASURES AS WAGEANDPRICE FREEZES THAT DOOMED PAST ATTEMPTS TO CURB BRAZIL'S RUNAWAY INFLATION MR CARDOSO SAID THE GOVERNMENT WOULD CUT SPENDING BY 6 BILLION THIS YEAR LAUNCH A FRONTAL ATTACK ON TAX EVASION SPEED UP PRIVATIZATION AND TACKLE THE COUNTRY'S 40 BILLION INTERNAL DEBT THE DIAGNOSIS OF THE FUNDAMENTAL CAUSE OF THE INFLATIONARY SICKNESS HAS BEEN MADE IT'S THE FINANCIAL AND ADMINISTRATIVE DISORDER OF THE PUBLIC SECTOR MR CARDOSO SAID THE ESSENTIAL PRESCRIPTION FOR TREATMENT IS ALSO KNOWN THE GOVERNMENT HAS TO CLEAN UP ITS OWN HOUSE AND PUT ORDER IN ITS ACCOUNTS THOUGH MR CARDOSO WHO LAST MONTH BECAME PRESIDENT ITAMAR FRANCO'S FOURTH FINANCE MINISTER IN NINE MONTHS WAS SHORT ON SPECIFICS HIS FRANKNESS AND APPARENT DETERMINATION WERE GREETED BY BUSINESSMEN AND BANKERS AS A POSSIBLE TURNING POINT IN BRAZIL'S DECADELONG BATTLE WITH INFLATION WHICH REACHED 1500 LAST YEAR AND CURRENTLY RUNS AT 29 A MONTH FINALLY A MAN IN AN IMPORTANT POSITION HAS HAD THE COURAGE TO SAY THE GOVERNMENT IS AT FAULT AND DIDN'T BLAME BUSINESSMEN UNIONS OR THE INTERNATIONAL MONETARY FUND SAID LAWRENCE PIH CHAIRMAN OF THE DIVERSIFIED SAO PAULO GROUP MOINHO PACIFICO SA IT'S DEFINITELY POSITIVE AT THE SAME TIME MANY BUSINESSMEN SAID THE MEASURES DO LITTLE MORE THAN PREVENT AN INFLATIONARY EXPLOSION THIS IS JUST A POLICY FOR TRANSITION SAID FORMER CENTRAL BANK PRESIDENT CARLOS LANGONI HE'S GAINING TIME TO PREPARE FOR A MORE FUNDAMENTAL SET OF PROPOSALS THAT WILL HAVE TO INCLUDE CONSTITUTIONAL CHANGES TO ALLOW A BOLD FISCAL REFORM EXTENDING PRIVATIZATION TO THE TELECOMMUNICATIONS AND OIL SECTORS AND PROVIDE FOR AN INDEPENDENT CENTRAL BANK 9306150152 930615 WHO'S NEWS NEW YORK CLEARING HOUSE ASSOCIATION NEW YORK CLEARING HOUSE ASSOCIATION NEW YORK JILL M CONSIDINE 47 YEARS OLD WAS NAMED PRESIDENT OF THIS BANK TRADE ASSOCIATION MS CONSIDINE SUCCEEDS JOHN F LEE 65 WHO IS RETIRING JUNE 30 SHE HAD BEEN MANAGING DIRECTOR AND CHIEF ADMINISTRATIVE OFFICER OF AMERICAN EXPRESS BANK LTD A UNIT OF AMERICAN EXPRESS CO AND IS A FORMER SUPERINTENDENT OF BANKS FOR NEW YORK STATE 9306150151 930615 WHO'S NEWS SIGNET BANKING CORP SIGNET BANKING CORP RICHMOND VA RICHARD D FAIRBANK 42 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT AND HEAD OF THE NATIONAL CREDIT CARD BUSINESS OF THIS BANK HOLDING COMPANY THE POSITION WAS CREATED AFTER DAVID K HUNT 47 LEFT LAST MONTH TO HEAD AMERICAN TELEPHONE & TELEGRAPH CO'S CREDIT CARD BUSINESS MR FAIRBANK WILL CONTINUE TO HEAD CREDIT CARD MARKETING MANAGEMENT INFORMATION SYSTEMS AND CREDIT POLICY ALSO NIGEL W MORRIS 34 WAS NAMED TO THE NEW POST OF EXECUTIVE VICE PRESIDENT OF THE CREDIT CARD DIVISION MR MORRIS HAD BEEN SENIOR VICE PRESIDENT AND WILL CONTINUE TO HEAD CREDIT CARD STRATEGY AND ACCOUNT MANAGEMENT POLICY AND IMPLEMENTATION 9306150150 930615 WHO'S NEWS TW HOLDINGS INC TW HOLDINGS INC SPARTANBURG SC GREGORY M BUCKLEY WAS NAMED SENIOR VICE PRESIDENT OF THIS FOOD SERVICES COMPANY'S TW SERVICES INC UNIT AND CHIEF OPERATING OFFICER OF ITS QUINCY'S FAMILY STEAKHOUSE DIVISION MR BUCKLEY 39 YEARS OLD SUCCEEDS WILLIAM G COX 44 WHO WAS NAMED VICE PRESIDENT OF OPERATIONS FOR THE WESTERN DIVISION OF DENNY'S ANOTHER TW SERVICES RESTAURANT CHAIN MR BUCKLEY HAD BEEN VICE PRESIDENT OF PEPSICO'S PIZZA HUT DIVISION IN CHICAGO 9306150149 930615 WHO'S NEWS JOHN FLUKE MANUFACTURING CO JOHN FLUKE MANUFACTURING CO EVERETT WASH ROBERT STEVENS MILLER JR 51 YEARS OLD AN INVESTMENT BANKER HAS BEEN ELECTED TO THE EXPANDED 12MEMBER BOARD OF THIS ELECTRONIC TEST TOOL MAKER 9306150148 930615 WHO'S NEWS GOTHAM APPAREL CORP GOTHAM APPAREL CORP NEW YORK WALTER KAYE 65 YEARS OLD WAS NAMED A DIRECTOR AT THIS APPAREL MAKER EXPANDING THE BOARD TO FOUR MEMBERS MR KAYE IS PRESIDENT CHIEF EXECUTIVE OFFICER AND MANAGING PARTNER OF MERCHANT FACTORS CORP A FACTORING FIRM IN NEW YORK 9306150147 930615 WHO'S NEWS GRUMA CORP USA GRUMA CORP USA LOS ANGELES JOSEPH M FABIANO 37 YEARS OLD WAS NAMED VICE PRESIDENT OF HUMAN RESOURCES AT THIS MEXICAN FOOD PRODUCTION HOLDING COMPANY MR FABIANO HAD BEEN DIRECTOR OF HUMAN RESOURCES FOR WALT DISNEY CO IN BURBANK CALIF MICHAEL L BAILEY 46 WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OF MISSION FOODS GRUMA'S TORTILLA MANUFACTURING UNIT MR BAILEY HAD BEEN VICE PRESIDENT AND GENERAL MANAGER OF NATIONAL DAIRY PRODUCTS FROZEN DESSERTS AND KNUDSEN DAIRY WHICH ARE DIVISIONS OF KRAFT GENERAL FOODS INC A UNIT OF PHILIP MORRIS COS IN NEW YORK BOTH POSITIONS ARE NEWLY CREATED 9306150146 930615 WHO'S NEWS SSE TELECOM INC SSE TELECOM INC MCLEAN VA ERIK H VAN DER KAAY 53 YEARS OLD WAS NAMED A DIRECTOR AT THIS MAKER OF SATELLITE TELECOMMUNICATIONS EQUIPMENT EXPANDING THE BOARD TO SIX MEMBERS MR VAN DER KAAY IS PRESIDENT OF THE ALLEN TELECOM GROUP A UNIT OF ALLEN GROUP INC IN MELVILLE NY 9306150144 930615 TECHNOLOGY BRIEF INTERNATIONAL BUSINESS MACHINES UNIT SIGNS LICENSING ACCORD ON ATMEL CORP GATE ARRAYS INTERNATIONAL BUSINESS MACHINES CORP ARMONK NY SAID ITS IBM TECHNOLOGY PRODUCTS UNIT SIGNED A LICENSING AGREEMENT WITH ATMEL CORP TO USE MODIFY MANUFACTURE AND SELL ATMEL'S LINE OF FIELDPROGRAMMABLE GATE ARRAYS TERMS WEREN'T DISCLOSED IBM TECHNOLOGY SAID THE ACCORD WILL ALLOW IT TO EXPAND ITS LINE OF MICROELECTRONICS PRODUCTS AVAILABLE TO IBM CUSTOMERS AND THE MERCHANT SEMICONDUCTOR MARKET THE AGREEMENT ALSO ENABLES THE COMPANIES TO COMBINE IBM TECHNOLOGY'S SILICON PACKAGING AND ELECTRONIC DESIGN AUTOMATION SOFTWARE TECHNOLOGIES WITH ATMEL'S HIGHSPEED FIELDPROGRAMMABLE GATEARRAY PRODUCT LINE ATMEL IS BASED IN SAN JOSE CALIF GATE ARRAYS ARE SEMICONDUCTORS USED IN GRAPHICS IMAGING AND TELECOMMUNICATIONS APPLICATIONS AMONG OTHERS WHERE SUPERHIGH PROCESSING SPEED IS REQUIRED 9306150143 930615 BUSINESS BRIEFS UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY UNIT REACHED A COOPERATION AGREEMENT WITH TWO RUSSIAN AVIATION COMPANIES PERM MOTORS AND AVIADVIGATEL TO DEVELOP COMMERCIAL AIRCRAFT ENGINES AND INDUSTRIAL GAS TURBINES RR DONNELLEY & SONS CO PURCHASED THE ASSETS OF TECH WEB INC TERMS WEREN'T DISCLOSED HARRIS CORP'S COMMUNICATIONS DIVISION WAS AWARDED A 52 MILLION CONTRACT BY THE US ARMY TO PROVIDE HIGHFREQUENCY RADIO SYSTEMS TO THE SAUDI ARABIAN AIR NATIONAL GUARD ESYSTEMS INC'S WHOLLY OWNED SERVAIR INC SUBSIDIARY RECEIVED A 25 MILLION TWOYEAR CONTRACT WITH THE OPTION TO EXTEND IT FOR THREE MORE YEARS FROM THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION TO PERFORM AIRCRAFT AND FLIGHTSIMULATOR MAINTENANCE AT THE NASA AMES RESEARCH CENTER IN MOUNTAIN VIEW CALIF GENERAL ELECTRIC CO'S GE POWER GENERATION OPERATION RECEIVED TWO TURBINE CONTRACTS TOTALING 15 MILLION FROM THE OKLAHOMA MUNICIPAL POWER AUTHORITY 9306150142 930615 WHO'S NEWS SONAT OFFSHORE DRILLING INC SONAT OFFSHORE DRILLING INC HOUSTON THIS OFFSHORE DRILLING COMPANY NAMED ITS BOARD OF DIRECTORS AFTER RECENTLY COMPLETING ITS INITIAL PUBLIC OFFERING THE BOARD INCLUDES RONALD L KUEHN JR 58 YEARS OLD CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER SONAT INC DONALD G RUSSELL 61 CHAIRMAN AND CHIEF EXECUTIVE OFFICER SONAT EXPLORATION CO A UNIT OF SONAT INC PEDRO CORTINA 48 CHAIRMAN AND CHIEF EXECUTIVE EPN SA DE CV A MEXICO CITYBASED ENERGY SERVICE AND CONSTRUCTION COMPANY ROBERT J LANIGAN 64 CHAIRMAN EMERITUS OWENSILLINOIS INC OF TOLEDO OHIO MAX L LUKENS 44 SENIOR VICE PRESIDENT BAKER HUGHES INC OF HOUSTON AND GILBERT PORTAL 60 SECRETARIAT GENERAL EUROPEAN PETROLEUM INDUSTRY ASSOCIATION OF BRUSSELS WILLIAM C O'MALLEY 56 SONAT OFFSHORE CHAIRMAN AND CHIEF EXECUTIVE OFFICER IS ALSO A BOARD MEMBER 9306150141 930615 WHO'S NEWS ATLANTIS GROUP INC ATLANTIS GROUP INC MIAMI MICHAEL A DIGREGORIO WAS NAMED CHIEF FINANCIAL OFFICER AND VICE PRESIDENT OF THIS PLASTICS COMPANY MR DIGREGORIO 38 YEARS OLD WILL SUCCEED CRAIG A BRUMFIELD 41 WHO WILL REMAIN AS AN ATLANTIS DIRECTOR AND AS VICE PRESIDENT AND MANAGING DIRECTOR OF TRIVEST INC AN INVESTMENT BANKING COMPANY AFFILIATED WITH ATLANTIS MR DIGREGORIO WAS FORMERLY SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF WACKENHUT CORP IN MIAMI 9306150140 930615 WHO'S NEWS SHAWMUT NATIONAL CORP SHAWMUT NATIONAL CORP HARTFORD CONN RAYMOND A GUENTER SENIOR VICE PRESIDENT GENERAL COUNSEL AND SECRETARY WAS PROMOTED TO EXECUTIVE VICE PRESIDENT OF THIS BANKING CONCERN 9306150139 930615 FORD PREDICTS LOSS IN EUROPE ON SALES SLUMP BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO WILL POST LOSSES IN EUROPE THIS YEAR AND POSSIBLY NEXT YEAR AS WELL IF THE ECONOMY THERE DOESN'T IMPROVE A TOP COMPANY OFFICIAL SAID FORD OF EUROPE WHICH HAS PREVIOUSLY ANNOUNCED PLANS TO TRIM 10000 JOBS THIS YEAR MAY MAKE FURTHER CUTS IN ITS WORK FORCE IF THE ECONOMY THERE CONTINUES TO WORSEN SAID WAYNE W BOOKER FORD'S EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL SALES HE PREDICTED THAT INDUSTRYWIDE VEHICLE SALES IN EUROPE FOR 1993 WILL DROP 17 BELOW 1992 LEVELS WE COULD BE IN THE MIDST OF ONE OF THE WORST RECESSIONS SINCE WORLD WAR II MR BOOKER TOLD EUROPEAN REPORTERS VISITING FORD HEADQUARTERS YESTERDAY MR BOOKER'S GRIM REMARKS CAME AS SOME ANALYSTS WERE CUTTING THEIR EARNING ESTIMATES FOR FORD FORD STOCK FELL 1875 TO 51875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY UNTIL RECENTLY INVESTORS WERE HOPEFUL THAT AN ECONOMIC REBOUND IN THE UNITED KINGDOM WOULD LIFT FORD'S EUROPEAN RESULTS SAID ANALYST WENDY NEEDHAM OF SMITH BARNEY HARRIS UPHAM & CO MS NEEDHAM LOWERED HER 1993 EARNINGS FORECAST FOR FORD YESTERDAY TO 17 BILLION FROM 23 BILLION FORD IS FORECASTING INDUSTRY SALES IN EUROPE OF 125 MILLION CARS AND LIGHT TRUCKS ITS DIMMEST FORECAST SO FAR THIS YEAR AND ONE THAT MEANS FORD WILL OPERATE AT A LOSS IN EUROPE FOR THE YEAR TWO MONTHS AGO FORD WAS FORECASTING INDUSTRY SALES IN EUROPE AT 131 MILLION FOR THE YEAR IF THE EUROPEAN ECONOMY TURNS AROUND FORD COULD SEE A PROFIT THERE NEXT YEAR MR BOOKER SAID IF IT DOESN'T 1994 WOULD BE THE FOURTH YEAR IN A ROW THAT FORD POSTED A LOSS ON ITS EUROPEAN OPERATIONS DISCOUNTING CHANGES IN ACCOUNTING METHODS FORD POSTED LOSSES OF MORE THAN 1 BILLION A YEAR IN EUROPE IN 1991 AND 1992 MR BOOKER CRITICIZED THE EUROPEAN COMMUNITY FOR NEGOTIATING WHAT HE SAID WERE OVERLY GENEROUS IMPORT RESTRICTIONS WITH JAPAN AND CALLED ON THE EC TO REOPEN NEGOTIATIONS WITH JAPAN IN LIGHT OF EUROPE'S FALTERING ECONOMY SALES AT FORD'S JAGUAR UNIT WERE UP 12 IN THE FIRST FIVE MONTHS OF 1993 OVER THE YEARAGO PERIOD BUT JAGUAR WILL NONETHELESS POST A LOSS FOR THIS YEAR AND WILL AT BEST BREAK EVEN IN 1994 MR BOOKER SAID THE BRIGHT SPOT IN FORD'S EUROPEAN OPERATIONS IS THE NEW MONDEO MR BOOKER SAID SINCE THE NEW SEDAN WAS LAUNCHED IN MARCH FORD HAS RECEIVED ORDERS FOR 200000 MONDEOS MORE THAN HALF ITS EXPECTED SALES FOR THE YEAR MR BOOKER SAID THAT ONE OF THE 200000 ORDERS CAME FROM THE UNITED KINGDOM'S PRINCESS DIANA 9306150138 930615 INTERNATIONAL EBRD PRESIDENT WANTS TO REGROUP DEMOTE AN OFFICIAL BY JANET GUYON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON IN WHAT APPEARS TO BE AN EFFORT TO KEEP HIS JOB THE BELEAGUERED PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT PROPOSED SHOVING ASIDE THE BANK'S DYNAMIC NO 2 EXECUTIVE RONALD FREEMAN AND BRINGING IN ERNEST STERN OF THE WORLD BANK WITH SUPPORT FROM THE US TREASURY EBRD PRESIDENT JACQUES ATTALI INFORMALLY OUTLINED A NEW MANAGEMENT STRUCTURE AT A MEETING OF BANK DIRECTORS YESTERDAY THE PLAN WOULD CREATE TWO SENIOR VICE PRESIDENT POSTS BENEATH MR ATTALI WITH FIVE VICE PRESIDENTS BELOW THAT ACCORDING TO PEOPLE AT THE EBRD WHO ATTENDED THE MEETING THE PROPOSAL EFFECTIVELY DEMOTES TO NO 4 MR FREEMAN A TOUGHTALKING AMERICAN INVESTMENT BANKER FORMERLY WITH SALOMON BROTHERS INC IN NEW YORK WHO HAS GIVEN MR ATTALI HIS UNQUALIFIED SUPPORT AND WHO IS ADMIRED WITHIN THE BANK OVER THE WEEKEND MR FREEMAN THREATENED TO RESIGN THEN TOLD AIDES HE WOULD TAKE A WAITANDSEE ATTITUDE NEITHER HE NOR MR STERN RETURNED PHONE CALLS A PERSON AT THE BANK SAID THE BANK'S 23 DIRECTORS DIDN'T REACH A CONSENSUS ON WHETHER TO SUPPORT MR ATTALI'S REORGANIZATION SOME DIRECTORS WANT TO WAIT UNTIL JULY 15 WHEN A REPORT IS DUE FROM THE BANK'S AUDIT COMMITTEE ON SPENDING ON THE BANK'S LUXURIOUS HEADQUARTERS AS WELL AS ON MR ATTALI'S TRAVEL BY PRIVATE JET THE GOVERNMENTSUPPORTED EBRD WAS CREATED TWO YEARS AGO TO HELP EAST EUROPEAN COUNTRIES MAKE THE TRANSITION TO MARKET ECONOMIES BUT IT HAS BEEN UNDER FIRE FOR SPENDING MORE ON ITSELF THAN ON ITS CLIENTS SUPPORT FOR MR ATTALI'S OUSTER HAD BEEN BUILDING WITH SOME SPECULATING IT COULD COME AROUND THE TIME OF THE JULY 7 TOKYO SUMMIT OF THE GROUP OF SEVEN INDUSTRIAL COUNTRIES TO SHOW ITS DISPLEASURE WITH THE BANK AND MR ATTALI THE US CONGRESS IS THREATENING TO WITHHOLD ITS FUNDING OF THE BANK THIS YEAR BUT YESTERDAY A US TREASURY SPOKESMAN IN WASHINGTON SAID IT SUPPORTS MR ATTALI'S REORGANIZATION PLAN THOUGH WE ARE CONCERNED THAT THE BANK KEEP ITS PRIVATE SECTOR FOCUS LENDING RULES REQUIRE THE BANK TO MAKE LOANS PRIMARILY TO PRIVATE COMPANIES IN AN EFFORT TO FOSTER PRIVATE ENTERPRISE IT ISN'T CLEAR WHY THE US WANTS MR STERN WHO IS CURRENTLY NO 2 AT THE WORLD BANK WHICH LENDS PRIMARILY TO GOVERNMENTS 9306150137 930615 CHASE MANHATTAN SELLS 96 MILLION MORE STOCK NEW YORK CHASE MANHATTAN CORP SOLD AN ADDITIONAL 96 MILLION IN COMMON STOCK AS PART OF LAST WEEK'S SECONDARY OFFERING PUTTING THE BANKING COMPANY A HAIRBREADTH AWAY FROM ITS GOAL OF RAISING 750 MILLION LAST WEEK THE COMPANY SOLD 22 MILLION COMMON SHARES VALUED AT 650 MILLION THAT WAS 100 MILLION LESS THAN THE COMPANY WAS HOPING TO RAISE BECAUSE OF THE 20 SLIDE IN THE STOCK PRICE SINCE THE ANNOUNCEMENT OF THE OFFERING BUT BECAUSE OF STRONG INVESTOR DEMAND UNDERWRITERS LED BY GOLDMAN SACHS & CO EXERCISED THEIR OPTION TO PURCHASE 33 MILLION ADDITIONAL SHARES AT 2950 EACH THAT RAISED THE TOTAL AMOUNT CHASE SOLD TO 74635 MILLION BEFORE WALL STREET'S FEES PROCEEDS WILL BE USED TO STRENGTHEN ITS CAPITAL POSITION AND HELP PAY FOR A WRITEDOWN OF 2 BILLION IN PROBLEM COMMERCIAL REALESTATE ASSETS BUCKING THE NEGATIVE SENTIMENT IN THE BANK STOCK ENVIRONMENT CHASE ENTICED INVESTORS WITH A HEFTY DIVIDEND YIELD OF OVER 4 AND SOLID EARNINGS POTENTIAL FOR AT LEAST 1993 ANALYSTS SAY THE SUCCESSFUL SALE INDICATES THAT THE ROUT IN BANK STOCKS MIGHT BE OVER WALL STREET IS EXPECTING CHASE TO EARN 80 CENTS A SHARE IN THE QUARTER ENDING JUNE 30 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY CHASE GAINED 50 CENTS TO 30 9306150136 930615 FLEET UNIT WINS USURY FEE CASE IN GEORGIA COURT BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA THE GEORGIA SUPREME COURT RULED THAT A FLEET FINANCIAL GROUP INC UNIT DIDN'T VIOLATE THE STATE'S USURY LAW AS CHARGED BY BORROWERS IN A CLASSACTION SUIT IN ITS RULING HOWEVER THE COURT STATED WE DO NOT CONDONE FLEET'S INTERESTCHARGING PRACTICES WHICH ARE WIDELY VIEWED AS EXORBITANT UNETHICAL AND PERHAPS EVEN IMMORAL THE COURT ADDED THAT THE PRACTICES SUGGEST FURTHER REGULATION OF THE LENDING INDUSTRY IS NEEDED BY GEORGIA'S LEGISLATURE THE BORROWERS HAD ALLEGED THAT THE FLEET UNIT FLEET FINANCE INC CHARGED FEES ON LOANS OF UP TO 18 AT CLOSING THUS VIOLATING THE STATE'S LIMIT ON INTEREST OF A MAXIMUM RATE OF 5 A MONTH FLEET IN PROVIDENCE RI ARGUED THAT ITS UNIT'S FEES DIDN'T VIOLATE THE STATE LAW BECAUSE THEIR COST WAS SPREAD OVER THE LIFE OF THE LOAN AND NEVER EXCEEDED 5 A MONTH IN A PRESS RELEASE FLEET SAID IT WAS EXTREMELY PLEASED WITH THE RULING WHICH CLEARS THE AIR OVER FLEET'S ALLEGED USURY VIOLATIONS HOWEVER OTHER LAWSUITS AGAINST THE FLEET UNIT IN ATLANTA ARE STILL OUTSTANDING IN GEORGIA INCLUDING ONE ALLEGING THAT THE UNIT'S LENDING PRACTICES VIOLATED LAWS AGAINST RACIAL DISCRIMINATION THE UNIT'S LENDING PRACTICES ALSO ARE THE SUBJECT OF A STATE INVESTIGATION MICHAEL ZUCCHINI FLEET'S VICE CHAIRMAN SAID THAT FLEET REINVENTED THE UNIT AFTER REVIEWING ITS LENDING PRACTICES AND FINDING SOME OF THEM INAPPROPRIATE WE HAVE LISTENED TO CRITICISMS AND RESPONDED HE SAID AFTER BORROWERS CHARGED THAT THE FLEET UNIT VIOLATED GEORGIA'S USURY LAW THE UNIT LAST FALL UNVEILED A PROGRAM TO RESPOND TO THE COMPLAINTS LAST MONTH FLEET FINANCE SAID IT CUT ITS INTEREST RATES TO QUALIFIED BUYERS AND CAPPED ITS LOAN ORIGINATION POINTS AT FIVE POINTS THE UNIT ALSO ANNOUNCED A CREDIT EDUCATION PROGRAM FOR CONSUMERS IN CONJUNCTION WITH THE NATIONAL CONSUMERS LEAGUE FLEET'S MR ZUCCHINI SAID FLEET FULLY SUPPORTS LEGISLATIVE ACTION IN GEORGIA TO LOWER THE MAXIMUM INTEREST RATE CHARGED IN THE STATE ON HOME LOANS WE'VE VOLUNTARILY IMPOSED LOWER RATES ON OURSELVES AND WELCOME ACROSSTHEBOARD LOWERING FOR OTHER LENDERS IN THE STATE HE SAID HARRY REVEL AN AUGUSTA GA ATTORNEY REPRESENTING BORROWERS IN THE LAWSUIT ALLEGING THE FLEET UNIT VIOLATED GEORGIA'S USURY LAW SAID THE PLAINTIFFS PLAN TO ASK THE GEORGIA COURT TO RECONSIDER ITS RULING IN ESSENCE THE COURT SAID IT'S UP TO THE LEGISLATURE TO SAVE THESE PEOPLE HE SAID WE'RE EXTREMELY DISAPPOINTED WITH THAT 9306150135 930615 PEPPERAND SALT THOUGH YOU THINK I'D ADORE IT THEN I WON'T HAVE TO STORE IT WITH A WEIGHTLOSS CLAIM DRAMATIC IS HIDING IT IN THE ATTIC WITH PROTECTIVE DEVICES GALORE IS MY FORGETTING TO LOCK THE DOOR 9306150134 930615 MONDAY'S MARKETS INDUSTRIALS GAIN 968 BONDS FALL TRADERS AWAIT DATA ON PRICES DOLLAR HITS A LOW AGAINST YEN BY STEVEN E LEVINGSTON AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL THE DOW JONES INDUSTRIAL AVERAGE ROSE IN CAUTIOUS TRADING AHEAD OF TODAY'S REPORT ON CONSUMER PRICES BOND PRICES EDGED LOWER AND THE DOLLAR SANK TO ANOTHER POSTWORLD WAR II LOW AGAINST THE YEN THE INDUSTRIALS GAINED 968 POINTS TO 351469 STANDARD & POOR'S 500STOCK INDEX INCHED UP 045 TO 44771 AND THE NASDAQ COMPOSITE INDEX ROSE 322 TO 69641 ANALYSTS SAID STOCK PRICES CONTINUED TO DRAW SUPPORT FROM FRIDAY'S INFLATION REPORT SHOWING PRODUCER PRICES IN MAY WERE UNCHANGED INVESTORS WERE NERVOUSLY AWAITING TODAY'S REPORT ON MAY'S CONSUMER PRICES HOPING IT WILL CONFIRM THAT THE RECENT INFLATION SCARE WAS EXAGGERATED FRANK CALTA HEAD OF INSTITUTIONAL TRADING AT JOSEPHTHAL LYON & ROSS SAID STRENGTH AMONG BIG BANKS SUGGESTED INVESTORS DON'T BELIEVE INFLATION IS A SERIOUS WORRY THE BANKS BENEFIT FROM A WIDE SPREAD BETWEEN SHORTTERM AND LONGTERM INTEREST RATES AND MODEST INFLATION WILL LIKELY KEEP SHORTTERM RATES RELATIVELY LOW WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 041 TO 10842 THE DOLLAR SANK TO ANOTHER RECORD LOW AGAINST THE YEN DESPITE REPEATED INTERVENTION BY THE BANK OF JAPAN TRADERS ATTRIBUTED THE SLIDE TO A CONTINUED BELIEF THAT THE CLINTON ADMINISTRATION WANTS A WEAKER DOLLAR TO INCREASE THE COMPETITIVENESS OF US GOODS AND HELP REDUCE THE HUGE TRADE DEFICIT WITH JAPAN THE DOLLAR EDGED HIGHER AGAINST THE MARK ON EXPECTATIONS THAT GERMANY'S DEEP RECESSION WILL PROMPT THE BUNDESBANK TO CUT DOMESTIC INTEREST RATES FURTHER FRANCE AND PORTUGAL LOWERED KEY MONEYMARKET RATES YESTERDAY FOLLOWING A REDUCTION IN ITALY'S DISCOUNT RATE FRIDAY IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2104 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 960 ISSUES FELL AND 946 ROSE BOND PRICES FELL THE TREASURY'S BENCHMARK 30YEAR ISSUE FELL ABOUT 1/8 POINT OR ABOUT 125 FOR EACH 1000 FACE AMOUNT TO YIELD 681 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 16280 MARKS AND 10510 YEN COMPARED WITH 16275 MARKS AND 10620 YEN FRIDAY 9306150133 930615 RESOURCE RECYCLING TECHNOLOGIES VESTAL NY RESOURCE RECYCLING TECHNOLOGIES INC SAID IT REFINANCED ITS TERM AND REVOLVING LINES OF CREDITS 9306150132 930615 INTERNATIONAL OIL FIRMS AGREE TO TERMS ON CASPIAN DEVELOPMENT HOUSTON SEVERAL OIL COMPANIES AGREED TO TERMS ON HOW TO SPLIT THE JOINT DEVELOPMENT OF THREE LARGE OIL FIELDS IN THE AZERBAIJAN SECTOR OF THE CASPIAN SEA PENNZOIL CO HOUSTON SAID ITS INTEREST WILL BE 12 WITH THE SCOTTISH ENERGY COMPANY RAMCO OIL SERVICES PLC RECEIVING A SMALL PORTION OF PENNZOIL'S SHARE AMOCO CORP CHICAGO SAID IT WILL HAVE A WORKING INTEREST OF AROUND 17 UNOCAL CORP LOS ANGELES HAS ALREADY SAID ITS SHARE WOULD BE 95 THE COMPANIES SAID THE BIGGEST PORTION 30 WOULD GO TO THE STATE OIL CO OF THE AZERBAIJAN REPUBLIC OR SOCAR OTHER LARGE WESTERN OIL FIRMS INVOLVED IN THE PROJECT BRITISH PETROLEUM CO AND THE NORWEGIAN STATE OIL COMPANY STATOIL HAVEN'T YET SAID WHAT THEIR PORTIONS WILL BE BUT IT IS BELIEVED THE TWO WILL HAVE A COMBINED INTEREST OF ABOUT 26 THESE COMPANIES EITHER SEPARATELY OR IN CONJUNCTION WITH OTHERS HAD BEEN PROCEEDING ON THEIR OWN THE REPUBLIC LAST MONTH SAID THEY SHOULD COMBINE THEIR EFFORTS WHICH COULD LOWER THE TOTAL COST OF THE PROJECT BECAUSE THEY WILL SHARE SOME FACILITIES THE COMPANIES STRESSED THAT THE AGREEMENT STILL SUBJECT TO CHANGE REQUIRES APPROVAL BY THE AZERBAIJAN PARLIAMENT 9306150131 930615 TECHNOLOGY BODY'S FORM OF MARIJUANA CHEMICAL IS PINPOINTED ISRAELI SCIENTISTS SAID THEY HAVE PINPOINTED THE BODY'S NATURAL VERSION OF THE ACTIVE INGREDIENT IN MARIJUANA THE DISCOVERY OPENS A NEW AVENUE TO FIND MEDICINES THAT CAN CROSS FROM THE BLOOD INTO THE BRAIN AS EASILY AS TETRAHYDROCANNABINOL OR THC THE CHEMICAL IN MARIJUANA THAT PRODUCES EUPHORIA THE THCLIKE COMPOUND IS ANANDAMIDE ACCORDING TO A REPORT IN THE JULY ISSUE OF THE JOURNAL OF NEUROCHEMISTRY BY A TEAM OF SCIENTISTS FROM THE WEIZMANN INSTITUTE OF SCIENCE IN REHOVOT AND HEBREW UNIVERSITY IN JERUSALEM WHILE ANANDAMIDE MIGHTN'T BE USEFUL AS A MEDICINE ITS DERIVATIVES MIGHT NEUROBIOLOGIST ZVI VOGEL HEAD OF THE WEIZMANN INSTITUTE TEAM SAID IN AN INTERVIEW THE BRAINBLOOD BARRIER IS THE BODY'S PROTECTIVE SHIELD THAT KEEPS POISONS AND CONSEQUENTLY SOME HELPFUL MEDICINES FROM THE BRAIN SUCH MEDICINES COULD GO BEYOND THE MENTAL EFFECTS OF MARIJUANA WHICH CAN COMBAT NAUSEA AND IS THOUGHT TO AFFECT EYE TISSUES 9306150130 930615 INTERNATIONAL VW MERCEDESBENZ POST PLUNGES IN SALES OF NEW CARS FOR MAY DUESSELDORF GERMANY MIRRORING THE COLLAPSE IN THE GERMAN CAR MARKET NEWCAR SALES IN WESTERN EUROPE BY MERCEDESBENZ AG AND VOLKSWAGEN AG CRASHED BY 29 AND 26 RESPECTIVELY IN MAY FROM THE YEAREARLIER PERIOD MERCEDES IS A UNIT OF DAIMLERBENZ AG MEANWHILE THE TWO LEADING JAPANESE CAR MAKERS IN THE EUROPEAN MARKET NISSAN MOTOR CO AND TOYOTA MOTOR CORP FARED MUCH BETTER POSTING DROPS OF ONLY 55 AND 77 RESPECTIVELY FOR THE PERIOD WHILE ALMOST ALL PRODUCERS FOR EUROPE'S MARKET ALSO EXPERIENCED SALES EROSION IN WHAT IS SHAPING UP TO BE THE MOST DRASTIC DECLINE THE AUTOMOTIVE INDUSTRY HAS SEEN IN ALMOST TWO DECADES THE VW GROUP WAS HIT HARD BY ITS DEPENDENCE ON THE TROUBLED GERMAN MARKET WHICH CONTRACTED 20 IN MAY ANALYSTS SAID NEWCAR REGISTRATIONS IN WESTERN EUROPE AS A WHOLE SANK 18 IN MAY ACCORDING TO THE EUROPEAN AUTOMOBILE MANUFACTURERS ASSOCIATION GENERAL MOTORS CO EMERGED AS ONE OF EUROPE'S STRONGER MANUFACTURERS COMING AWAY WITH ONLY A 94 DECLINE FROM MAY 1992 LEVELS MEANWHILE ITALY'S FIAT SPA CONTINUED TO BE BATTERED BY THE CRUMBLING ITALIAN CAR MARKET WHICH SKIDDED 27 IN MAY WITH ITS SALES FALLING 21 FIAT DROPPED TO THIRD PLACE IN A TIE WITH RENAULT SA IN THE NUMBER OF CARS SOLD SO FAR THIS YEAR 9306150129 930615 TECHNOLOGY & MEDICINE DOW FOOD ADDITIVE LOWERS CHOLESTEROL IN BLOOD DATA SAY BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A VARIATION OF A DOW CHEMICAL CO FOOD ADDITIVE IS SHOWING PROMISE AS A DRUG FOR LOWERING BLOOD CHOLESTEROL LEVELS SCIENTISTS FROM THE UNIVERSITY OF MICHIGAN AND THE COMPANY REPORTED BOTH THE POTENTIAL DRUG AND THE FOOD ADDITIVE ARE DERIVATIVES OF CELLULOSE EXTRACTED FROM WOOD THE FOOD ADDITIVES ARE USED IN SMALL AMOUNTS TO THICKEN CHEESECAKES PUDDINGS AND CERTAIN OTHER COMMERCIALLY PROCESSED FOODS THE DERIVATIVE THAT SHOWS PROMISE AS A DRUG IS CALLED HPMC HYDROXYPROPYLMETHYLCELLULOSE THE DRUG COULD BE ADMINISTERED AS AN INGREDIENT IN FOR EXAMPLE A COOKIE OR AS A POWDER TO BE ADDED TO WATER OR FRUIT JUICE SAID CHEMIST STEPHEN W TOBEY THE DOW CHEMICAL SCIENTIST WHO HEADS THE COMPANY'S RESEARCH ON HPMC THE DRUG AVOIDS THE TEXTURE PROBLEMS THAT HAUNT OTHER POWDERED CHOLESTEROLLOWERING DRUGS THESE INCLUDE CHOLESTYRAMINE SOLD BY BRISTOLMYERS SQUIBB CO UNDER THE BRAND NAME QUESTRAN AND COLESTIPOL SOLD BY UPJOHN CO AS COLESTID I COULD GIVE HPMC TO YOU IN A BISCUIT AND YOU WOULDN'T KNOW IT WAS IN THERE DR TOBEY SAID CHOLESTEROLLOWERING DOSAGES WOULD PROBABLY RANGE FROM 10 TO 30 GRAMS A DAY COMPARED WITH A FRACTION OF A GRAM A DAY THAT MIGHT BE CONSUMED IN FOODS HE SAID DOW BASED IN MIDLAND MICH IS LOOKING FOR A PHARMACEUTICAL PARTNER TO TAKE THE COMPOUND INTO LARGESCALE LONGTERM TRIALS DR TOBEY SAID A LOGICAL PARTNER HE SAID MIGHT BE MARION MERRELL DOW INC THE KANSAS CITY MO DRUG MAKER THAT IS 71OWNED BY DOW CHEMICAL IN THE STUDY WHICH WAS FUNDED BY DOW CHEMICAL THE UNIVERSITY OF MICHIGAN TEAM REPORTED THAT IT HAD TESTED HPMC IN THREE DIFFERENT GROUPS OF HUMANS BLOOD CHOLESTEROL LEVELS DROPPED AN AVERAGE OF 32 IN A ONEWEEK TRIAL IN 10 HEALTHY YOUNG MEN REPORTED JENNIFER B DRESSMAN ASSOCIATE PROFESSOR OF PHARMACEUTICS AND HER COLLEAGUES IN THE ARCHIVES OF INTERNAL MEDICINE IN A SECOND EXPERIMENT ON 12 PEOPLE WITH MILDLY ELEVATED BLOOD CHOLESTEROL LEVELS HPMC REDUCED CHOLESTEROL LEVELS BY AN AVERAGE OF 22 OVER TWO WEEKS IN A THIRD TRIAL ON 12 PEOPLE WHO ALSO HAD HIGH CHOLESTEROL LEVELS THE DEGREE OF CHOLESTEROL REDUCTION VARIED WITH THE DOSAGE SIDE EFFECTS WERE MINIMAL CONSISTING MOSTLY OF A FEELING OF BLOATING RESEARCHERS SAID THE DRUG SEEMED TO LOWER CHOLESTEROL LEVELS IN LESS THAN A WEEK ALTHOUGH IT REMAINS TO BE SEEN WHETHER THIS RATE CAN BE MAINTAINED DR DRESSMAN SAID DR DRESSMAN SAID THE DRUG APPEARS TO WORK BY THICKENING THE FOOD AND SLOWING ITS MOVEMENT THROUGH THE INTESTINES THE SPECULATION IS THAT THIS EITHER LOWERS THE EFFICIENCY WITH WHICH THE DIGESTIVE SYSTEM DIGESTS CHOLESTEROL AND DIETARY FATS OR ELSE IT SLOWS THE ABSORPTION OF CHOLESTEROL BY THE INTESTINES 9306150128 930615 COMMODITIES GOLD FUTURES PRICES EASE AS BARGAINHUNTERS ERASE MUCH OF A SLIDE CAUSED BY FUNDS' SELLING BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES ENDED SLIGHTLY LOWER RECOVERING FROM AN EARLY BOUT OF TECHNICALLY BASED SELLING BY COMMODITY FUNDS THAT HAD PUSHED PRICES NEARLY 6 BELOW FRIDAY'S CLOSE ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY SETTLED 90 CENTS LOWER AT 36660 AN OUNCE IN CHOPPY TRADING ON FRIDAY GOLD FELL 350 ON NEWS THAT WHOLESALE PRICES IN MAY WERE UNCHANGED THE PRECIOUS METAL WHICH HAS BEEN SLIDING AMID DISSIPATING FEARS ABOUT INFLATION HAD TRADED AS LOW AS 36170 YESTERDAY BEFORE BARGAINHUNTERS STEPPED IN WITH BUY ORDERS TRADERS SAID THERE'S STILL A LOT OF CONFIDENCE IN THIS MARKET DESPITE THE FACT THAT THE GOLD PRICE IS ERODING SAID BERNARD SAVAIKO A SENIOR COMMODITY ANALYST WITH PAINE WEBBER THAT CONFIDENCE HE SAID IS ROOTED IN PERCEPTIONS OF STRONG INDUSTRIAL DEMAND FOR THE METAL FROM ASIA AMID TIGHTENING WORLDWIDE SUPPLIES MR SAVAIKO SAID THE GOLD MARKET A TRADITIONAL REFUGE FOR INVESTORS CONCERNED ABOUT RISING INFLATION IS WAITING ANXIOUSLY FOR TODAY'S RELEASE OF THE GOVERNMENT'S MAY CONSUMER PRICE REPORT BUT HE SAID THERE IS LITTLE REASON TO EXPECT THE CPI FIGURE TO SIGNAL A RETURN OF INFLATION THE INFLATION FEARS OF RECENT MONTHS WERE OVERDONE HE SAID MY PERSONAL VIEW IS THAT WE COULD SEE GOLD GO LOWER AS INFLATION CONCERNS SUBSIDE EVEN FURTHER WHAT HAS HURT GOLD IN RECENT WEEKS TRADERS SAY IS THE MARKED DECLINE IN THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS WHICH HAS FALLEN TO ITS LOWEST LEVEL SINCE THE FIRST WEEK IN MARCH THE CRB INDEX YESTERDAY CLOSED AT 20339 UP 010 FROM FRIDAY A YEAR AGO THE INDEX STOOD AT 20944 SOME ANALYSTS HAVE SAID THE RECENT WEAKNESS IN ENERGY CORN LUMBER AND COCOA FUTURES PRICES COULD HELP DRIVE THE CRB LOWER AND FURTHER ERODE SUPPORT FOR GOLD ECONOMISTS WITH NEW YORKBASED INTERNATIONAL STRATEGY & INVESTMENT NOTE THAT THE CRB HAS DECLINED IN JULY IN EACH OF THE PAST NINE YEARS BY SIX POINTS ON AVERAGE SUGGESTING THAT IT COULD CRACK 200 THIS JULY OTHER ANALYSTS SEE GOLD'S RECENT DOWNTREND AS A CORRECTION TO A RALLY THAT HAD GONE TOO FAR TOO FAST THIS HAS BEEN A HEALTHY CORRECTION SAID STEPHEN PLATT AN ANALYST WITH DEAN WITTER IN CHICAGO IF CHINESE DEMAND FOR GOLD DOESN'T COLLAPSE AND IF WE DON'T SEE THE KIND OF CENTRAL BANK SELLING THAT WAS APPARENT LAST YEAR THEN GOLD'S SUPPLY AND DEMAND SITUATION DICTATES FIRMER PRICES THAN WE HAVE NOW IN OTHER PRECIOUS METALS ACTIVITY SILVER FOR JULY DELIVERY ENDED 25 CENTS HIGHER AT 4218 CENTS ON THE COMEX ON THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JULY DELIVERY SLID 560 TO 37950 AND SEPTEMBER PALLADIUM WAS 70 CENTS LOWER AT 12435 IN OTHER COMMODITY MARKETS GRAINS AND SOYBEANS SOYBEAN FUTURES PRICES DECLINED DESPITE WORRIES ABOUT THE DELAYED PLANTING OF THIS YEAR'S SOYBEAN CROP PERSISTENT RAIN THROUGH THE MIDWEST AND PLAINS STATES HAS HAMPERED FARMERS' EFFORTS TO PLANT SOYBEANS A REPORT RELEASED BY THE US AGRICULTURE DEPARTMENT YESTERDAY SHOWED THAT ONLY 72 OF THE SOYBEAN CROP IS PLANTED COMPARED WITH 89 LAST YEAR AT THIS TIME THE DELAYED PLANTINGS COULD POTENTIALLY DIMINISH SOYBEAN YIELDS ANALYSTS SAID ON THE OTHER HAND THE SOYBEANS THAT HAVE BEEN PLANTED ARE BENEFITING FROM THE HEAVY RAIN SO DETERMINING THE WET WEATHER'S ULTIMATE EFFECT ON THE CROP IS DIFFICULT AT THIS POINT SAID RICHARD LOEWY PRESIDENT OF AGRESOURCE CO CHICAGO SOME TRADERS APPARENTLY HAVE CONCLUDED THAT THE RAIN IS FAVORABLE FOR THE DEVELOPING CROP HE SAID AT THE CHICAGO BOARD OF TRADE SOYBEANS FOR JULY DELIVERY WERE DOWN 4 1/4 CENTS TO 5845 A BUSHEL ENERGY PETROLEUM FUTURES PRICES SLID AGAIN ALTHOUGH NOT AS SHARPLY AS IN RECENT SESSIONS IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE MARKET WATCHERS ATTRIBUTED THE DECLINE TO TECHNICAL FACTORS AND TO CONTINUED FALLOUT FROM OPEC'S DISHARMONY KUWAIT MADE IT CLEAR AT LAST WEEK'S MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES THAT IT WOULD IGNORE THE GROUP'S THIRDQUARTER PRODUCTION AGREEMENT ESSENTIALLY A CONTINUATION OF THE SECONDQUARTER PACT THAT PUSHED PRICES DOWN SHARPLY LAST WEEK YESTERDAY CRUDE OIL FOR JULY DELIVERY LOST ANOTHER NINE CENTS A BARREL TO FINISH AT 1889 PRODUCTS WERE LOWER AS WELL WITH JULY HEATING OIL LOSING 056 CENT A GALLON TO SETTLE AT 5245 CENTS AND WITH GASOLINE FOR JULY OFF 007 CENT CLOSING AT 5454 CENTS A GALLON JULY NATURAL GAS WAS 22 CENTS HIGHER ON LITTLE NEWS AND IN THIN TRADING IT CLOSED AT 220 PER MILLION BRITISH THERMAL UNITS ROUGHLY EQUIVALENT TO ONE THOUSAND CUBIC FEET OF NATURAL GAS 9306150127 930615 BAPTISTS PRAY FOR PRODIGAL PRESIDENT BY JACK CHAMBERS TODAY THE THREEDAY ANNUAL MEETING OF THE SOUTHERN BAPTIST CONVENTION WILL BEGIN IN HOUSTON NOTICEABLY ABSENT FROM THE PROGRAM ARE PRESIDENT CLINTON AND VICE PRESIDENT GORE BOTH OF WHOM ARE SOUTHERN BAPTISTS NOT ONLY WERE THEY NOT INVITED TO SPEAK AT THE MEETING BUT SEVERAL RESOLUTIONS ARE EXPECTED TO BE PROPOSED CRITICIZING MR CLINTON FOR ABANDONING HIS FELLOW BAPTISTS ON MORAL AND SOCIAL ISSUES THE SBC IS THE LARGEST PROTESTANT DENOMINATION IN THE US WITH 38000 CHURCHES AND 16 MILLION MEMBERS ITS OFFICIAL ANNUAL OPERATING BUDGET IS 140 MILLION NOT INCLUDING THE BUDGETS OF AUXILIARY ORGANIZATIONS WHICH COME TO MORE THAN 1 BILLION ANNUALLY ALTHOUGH THE SBC IS A NONPROFIT RELIGIOUS ORGANIZATION WITH NO OFFICIALLY ORGANIZED POLITICAL MACHINE THE DENOMINATION REPRESENTS A SIGNIFICANT VOTING BLOC THUS RECENT US PRESIDENTS HAVE BEEN SENSITIVE TO THE PREVAILING VIEWS OF THE DENOMINATION'S LEADERSHIP AND HAVE MET WITH IT FREQUENTLY BILLY GRAHAM'S RELATIONSHIP WITH PRESIDENTS HAS SYMBOLICALLY REPRESENTED A SOUTHERN BAPTIST PRESENCE IN THE WHITE HOUSE FOR THE PAST SEVERAL DECADES SEVERAL US PRESIDENTS HAVE BEEN ASKED TO SPEAK AT THE SBC'S ANNUAL MEETING LAST YEAR'S CONVENTION IN INDIANAPOLIS AND THE PREVIOUS YEAR'S MEETING IN ATLANTA FEATURED SPEECHES BY DAN QUAYLE AND GEORGE BUSH RESPECTIVELY BUT THIS YEAR AN INVITATION TO MR CLINTON OR MR GORE WAS NEVER CONSIDERED IN FACT SAYS FRED POWELL AN SBC OFFICIAL WERE CLINTON OR GORE TO SPEAK MANY MESSENGERS WOULD PROBABLY BOYCOTT THE SESSION TWENTYTHREE THOUSAND OF THESE MESSENGERS ELECTED BY THEIR HOME CHURCHES ARE EXPECTED AT THIS YEAR'S CONVENTION WHY HAVE MESSRS CLINTON AND GORE BEEN EXCLUDED FROM PARTICIPATING MR POWELL SENIOR ASSOCIATE PASTOR AT THE 6000MEMBER FIRST BAPTIST CHURCH OF MOORE OKLA WHO CHAIRED THE COMMITTEE THAT INVITED SPEAKERS TO THE CONVENTION SAYS IT IS BECAUSE THEY ARE SO FAR REMOVED FROM THE GREAT MAJORITY OF SOUTHERN BAPTISTS PHILOSOPHICALLY THE SBC WILL BE VOTING ON SEVERAL RESOLUTIONS JAMES MERRITT CHAIRMAN OF THE SBC RESOLUTIONS COMMITTEE SAYS THAT OF ALL THE PROPOSED RESOLUTIONS THAT HAVE COME ACROSS HIS DESK MORE OF THEM DEAL WITH MR CLINTON'S AGENDA ON MORAL AND SOCIAL ISSUES THAN WITH ANY OTHER ITEM MANY OF THESE PROPOSED RESOLUTIONS NOTE THAT MR CLINTON'S POSITIONS ARE INCONSISTENT WITH BAPTIST BELIEFS MR MERRITT WHO IS PASTOR AT THE 7000MEMBER FIRST BAPTIST CHURCH OF SNELLVILLE GA SAYS THAT THE RESOLUTIONS SPECIFICALLY CRITICIZE MR CLINTON FOR SUPPORTING HOMOSEXUALS IN THE MILITARY AND FOR BACKING THE FREEDOM OF CHOICE ACT WHICH WOULD PREVENT STATES FROM IMPOSING ANY KIND OF RESTRICTION ON ABORTION MR MERRITT SAYS IT IS LIKELY THAT A RESOLUTION ON MR CLINTON'S POLICIES WILL BE RECOMMENDED BY HIS COMMITTEE SINCE PRESIDENT CLINTON PROFESSES TO BE A BAPTIST BROTHER HE REMARKS WE HAVE A BIBLICAL MANDATE AND A CHRISTIAN RESPONSIBILITY TO CONFRONT HIM ON HIS POLICIES HE SAYS THE PURPOSE OF A RESOLUTION WOULD BE TO LET MR CLINTON KNOW HE IS NOT WALKING IN LINE WITH SOUTHERN BAPTIST BELIEFS AND TO CALL HIM BACK TO SCRIPTURALLY BASED MORALITY MORRIS CHAPMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE SBC EXECUTIVE COMMITTEE SAYS MANY BELIEVE THE CLINTON ADMINISTRATION HAS TAKEN STANDS WHICH ARE CONTRARY TO THE WORD OF GOD HE SAYS THAT THE BIBLE INSTRUCTS CHRISTIANS TO PRAY FOR OUR LEADERS AND THAT BAPTISTS GLADLY DO SO BUT ARE IN NO WAY RESTRICTED FROM PUBLICLY DIFFERING WITH THEM MR CLINTON DID MEET WITH SEVERAL EVANGELICAL LEADERS SHORTLY AFTER HIS ELECTION INCLUDING PAST SBC PRESIDENT ADRIAN ROGERS HOWEVER ACCORDING TO MR CHAPMAN THIS MEETING SEEMED TO BE MORE A COURTESY THAN AN OPPORTUNITY FOR SUBSTANTIVE DISCUSSION THE ANNUAL SBC PASTORS' CONFERENCE TOOK PLACE SUNDAY AND MONDAY IN HOUSTON AHEAD OF THE FULL CONVENTION THE THEME FOR THIS YEAR'S CONFERENCE WAS HEAL OUR LAND JAY STRACK A PROMINENT SOUTHERN BAPTIST EVANGELIST AND FIRST VICE PRESIDENT OF THE SBC SAYS THAT MANY OF MR CLINTON'S POLICIES HAVE ONLY CONTRIBUTED TO THE REASONS OUR LAND NEEDS TO BE HEALED MR STRACK SAYS WE ARE LIKE THE FATHER OF THE PRODIGAL SON WAITING AND PRAYING WITH THE PORCH LIGHT ON READY TO RUN TO MEET CLINTON HALFWAY DOWN THE ROAD MR STRACK SAYS THAT MR CLINTON'S RELIGIOUS LIFE IS TYPICAL OF THE COMPARTMENTALIZED RELIGION OF MANY AMERICANS WHOSE FAITH IS ONE ELEMENT IN THEIR LIVES BUT NOT ALLENCOMPASSING HE NOTES THAT ON INAUGURATION DAY MR CLINTON STARTED OUT AT A PRAYER MEETING AND ENDED UP THAT EVENING AT GAY AND LESBIAN PARTIES ED YOUNG PASTOR OF THE 19000MEMBER SECOND BAPTIST CHURCH OF HOUSTON AND PRESIDENT OF THE SBC HAS NOT PUBLICLY CRITICIZED MR CLINTON HOWEVER HE EXPRESSES CONCERN THAT MANY CURRENT NATIONAL POLICIES ARE SYMPTOMATIC OF OUR NATION ENTERING A POSTCHRISTIAN ERA UNFORTUNATELY INSTEAD OF SHOWING ANY RESOLVE TO ADDRESS THE CONCERNS OF FELLOW BAPTISTS MR CLINTON HAS APPARENTLY BECOME THE NEW DARLING OF THEOLOGICAL LIBERALS ACCORDING TO THE MAY 22 WORLD MAGAZINE A CONSERVATIVE NEWSWEEKLY LEADERS OF WHAT IT CALLS THE RELIGIOUS LEFT MANY OF THEM ASSOCIATED WITH THE NATIONAL COUNCIL OF CHURCHES RECENTLY MET WITH MR CLINTON WHO TOLD THEM I'VE BEEN SO CRITICIZED BY THE RELIGIOUS RIGHT COMMUNITY IT'S GOOD TO HAVE RELIGIOUS PEOPLE WHO UNDERSTAND WHAT I'M TRYING TO DO MR GORE HAS ALSO ALIENATED MANY IN THE EVANGELICAL COMMUNITY NOT ONLY BY HIS POSITIONS ON THE ISSUES MENTIONED EARLIER BUT BY HIS EXTREME ENVIRONMENTALIST VIEWS MANY OF HIS STATEMENTS AND WRITINGS SEEM TO PROMOTE NEW AGE EARTHWORSHIPING PHILOSOPHIES THAT ARE CONTRARY TO ORTHODOX CHRISTIANITY I WILL ATTEND THE CONVENTION THIS WEEK AS AN ELECTED MESSENGER FROM MY HOME CHURCH MANY OF US SOUTHERN BAPTISTS ARE EMBARRASSED AND DISAPPOINTED BY THE AGENDA OF MR CLINTON AND MR GORE BUT WE ARE PRAYING THAT THEY WILL WAKE UP AND SEE THAT THEY HAVE ABANDONED NOT ONLY THEIR RELIGIOUS DENOMINATION BUT MAINSTREAM AMERICA AS WELL AS MR STRACK SAYS PRESIDENT CLINTON AND VICE PRESIDENT GORE CANNOT AFFORD TO CONTINUE TO ALIENATE GODFEARING FAMILYORIENTED PEOPLE MR CHAMBERS IS A SYNDICATED COLUMNIST AND A RADIO AND TV TALK SHOW HOST IN AUSTIN TEXAS 9306150126 930615 CREDIT MARKETS GYRATING GOLD PRICES CREATE VOLATILE SESSION FOR US LONG BONDS AS OTHER ISSUES ARE STEADY BY CONSTANCE MITCHELL AND KEVIN DONOVAN STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK GYRATING GOLD PRICES SENT LONGTERM TREASURY BONDS ON A SEESAW RIDE YESTERDAY BUT PRICES OF MOST OTHER FIXEDINCOME SECURITIES WERE LITTLE CHANGED IN EXTREMELY QUIET TRADING THE BOND MARKET'S BELLWETHER SECURITY THE 30YEAR TREASURY BOND ENDED AT A PRICE OF 103 29/32 DOWN ABOUT 1/8 POINT THAT TRANSLATES INTO A LOSS OF ABOUT 125 FOR A BOND WITH A 1000 FACE AMOUNT THE BELLWETHER BOND'S YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE ROSE SLIGHTLY TO 681 FROM 680 FRIDAY TRADERS SAID THAT BOND PRICES OPENED UNCHANGED AS NERVOUS BOND INVESTORS STAYED OUT OF THE MARKET AHEAD OF TODAY'S RELEASE OF POTENTIALLY MARKETMOVING ECONOMIC DATA INCLUDING THE CONSUMER PRICE INDEX FOR MAY THE CPI IS A MAJOR INFLATION BAROMETER HOWEVER LONGTERM BONDS STAGED A BRIEF RALLY DURING MIDMORNING TRADING AFTER GOLD PRICES PLUNGED AS MUCH AS 6 AN OUNCE THE BOND MARKET RALLY ENDED ABRUPTLY AND PRICES SANK AFTER GOLD REBOUNDED SPOT GOLD ENDED 1 LOWER AT 36500 AN OUNCE YESTERDAY IN NEW YORK AFTER A VOLATILE SESSION THE INVERSE RELATIONSHIP BETWEEN THE PRICES OF GOLD AND BONDS REFLECTS CHANGING INFLATION EXPECTATIONS GOLD IS OFTEN VIEWED AS A REFERENDUM ON INFLATION PSYCHOLOGY SAID WILLIAM SULLIVAN DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC SOME BOND INVESTORS BELIEVE THAT RISING GOLD PRICES MEANT THAT INFLATION WAS PICKING UP AND THAT THE FEDERAL RESERVE WOULD TIGHTEN INTEREST RATES SOONER RATHER THAN LATER TO THE EXTENT THAT GOLD PRICES ARE NOW DECLINING THAT'S VIEWED AS REPRESENTING SOME IMPROVEMENT IN INFLATIONARY PSYCHOLOGY AND REDUCES THE PRESSURE OF THE FED TO CONSIDER AN IMMEDIATE TIGHTENING OF POLICY MORE INSIGHTS ON INFLATION COME WITH TODAY'S CPI REPORT ECONOMISTS POLLED BY DOW JONES CAPITAL MARKETS REPORT EXPECT THE REPORT TO SHOW THAT THE OVERALL CPI ROSE 02 IN MAY AND THAT THE CORE INFLATION RATE WHICH EXCLUDES THE VOLATILE PRICES OF FOOD AND ENERGY ROSE 03 ANALYSTS WARN THAT A LARGER RISE IN THE CPI COULD TRIGGER INFLATION PANIC AGAIN AND CAUSE BOND PRICES TO DECLINE IF WE GET 04 OR ABOVE ON THE CPI WE RUN THE RISK OF SEEING THE FED MOVE TO RAISE INTEREST RATES SAID MICHAEL MORAN CHIEF ECONOMIST AT DAIWA SECURITIES AMERICA INC HE ADDED THAT THE CHANCES FOR A TIGHTENING UNDER THOSE CIRCUMSTANCES WOULD NOT BE ABSOLUTELY CERTAIN BUT THAT THERE WOULD BE SOME POTENTIAL FOR AN INTEREST RATE HIKE ALSO DUE OUT TODAY WILL BE THE WEEKLY JOHNSON REDBOOK RETAIL SALES REPORT EARLY JUNE DOMESTIC CAR SALES WORKERS' REAL EARNINGS FOR MAY AND FIRSTQUARTER MANUFACTURERS' PROFITS ALSO YESTERDAY THE TREASURY SOLD 24 BILLION OF BILLS AT ITS REGULAR WEEKLY AUCTION HERE ARE THE RESULTS BOTH ISSUES ARE DATED JUNE 17 THE 13WEEK BILLS MATURE SEP 16 1993 AND THE 26WEEK BILLS MATURE DEC 16 1993 GENERAL MOTORS ACCEPTANCE CORP A GENERAL MOTORS CORP FINANCIAL SERVICES UNIT JOINED THE GROWING LIST OF US BORROWERS TAPPING THE EUROBOND MARKET IN RECENT WEEKS BUT UNDERWRITERS SAID THE OFFERING BADLY MISFIRED WHILE UNDERLYING US TREASURYS ENJOYED A TRANQUIL DAY WITH LITTLE PRICE MOVEMENT DEALERS SAID THAT GMAC'S 300 MILLION OF FIVEYEAR NOTES DROPPED FROM AN INITIAL OFFER PRICE OF 99512 TO A BID PRICE OF 9910 LATE YESTERDAY IN LONDON MEANWHILE IN THE US CHRYSLER FINANCIAL CORP A UNIT OF AUTO MAKER CHRYSLER CORP SAW STRONG DEMAND FOR AN OFFERING OF FIVEYEAR NOTES TRADERS SAID DEMAND FOR GMAC'S EUROBONDS WAS WEAKER THAN EXPECTED IN PART BECAUSE LEAD UNDERWRITER MORGAN STANLEY INTERNATIONAL SET THE YIELD ON THE NOTES TOO LOW SOME TRADERS SAID THAT GMAC'S POOR SHOWING IN THE EUROBOND MARKET WAS SOMEWHAT SURPRISING CONSIDERING THE STRONG PERFORMANCE OF OTHER RECENT DOLLARDENOMINATED OFFERINGS BY US CORPORATIONS IN EUROPE FOR EXAMPLE THE YIELD SPREADS ON EUROBONDS ISSUED RECENTLY BY ELI LILLY & CO AND AMERICAN TELEPHONE & TELEGRAPH CO HAVE NARROWED SHARPLY THE YIELD SPREAD OR GAP BETWEEN YIELDS ON CORPORATE BONDS AND ON US TREASURY BONDS WITH THE SAME OR SIMILAR MATURITY IS A MEASURE OF PERFORMANCE WHEN THE YIELD ON A CORPORATE BOND NARROWS RELATIVE TO TREASURY YIELDS IT MEANS THAT THE CORPORATE BONDS ARE PERFORMING BETTER THAN TREASURY BONDS LAST WEEK THE YIELD ON ELI LILLY'S DOLLARDENOMINATED BONDS NARROWED TO A SLENDER 0125 PERCENTAGE POINT ABOVE TREASURYS FROM A SPREAD OF 015 PERCENTAGE POINT WHEN THE BONDS WERE INITIALLY SOLD WHILE THE YIELD ON AT&T'S RECENT EUROBONDS TIGHTENED TO LESS THAN 030 PERCENTAGE POINT FROM 040 PERCENTAGE POINT BUT GMAC HAS A MUCH LOWER CREDIT RATING THAN THOSE TWO COMPANIES WHICH MAY HAVE AFFECTED DEMAND FOR THE COMPANY'S NOTES THE LOWER RATING TRIPLEBPLUS BY STANDARD & POOR'S CORP AND BAA1 BY MOODY'S INVESTORS SERVICE INC EXPLAINS WHY GMAC'S EUROBONDS WERE PRICED AT A YIELD THAT WAS 105 PERCENTAGE POINTS ABOVE THE YIELD ON FIVEYEAR TREASURY BONDS AFTER THE PRICING THE SPREAD QUICKLY MOVED OUT TO ABOUT 118 PERCENTAGE POINTS ABOVE TREASURYS AND THE PRICE SLID THE SPREAD ON THE GMAC EUROBONDS NOW IS IN LINE WITH THE SPREAD IN THE US BOND MARKET WHERE FIVEYEAR GMAC PAPER WAS QUOTED AT A YIELD SPREAD OF BETWEEN 115 PERCENTAGE POINTS AND 121 PERCENTAGE POINTS YESTERDAY TODAY MORGAN STANLEY WILL LEAD MANAGE AN EXPECTED 300 MILLION OF FIVEYEAR BONDS FOR U S WEST INC THE TELECOMMUNICATIONS CONCERN BUT BANKERS SAID YESTERDAY THAT PRICING OF THAT ISSUE ALSO WAS THE SUBJECT OF DEBATE THE INITIAL PRICE TALK CENTERED ON A YIELD SPREAD OF 030 PERCENTAGE POINT ABOVE TREASURYS A LEVEL CONSIDERED TOO TIGHT DEALERS SAID THAT THE EXPECTED YIELD MARGIN HAD MOVED OUT TO 033 PERCENTAGE POINT BUT ACCORDING TO ONE BANKER INVOLVED THE PSYCHOLOGY HAS CHANGED AND THE SPREAD MAY END UP WIDER STILL MORGAN STANLEY OFFICIALS DIDN'T RETURN CALLS ALSO YESTERDAY BANKING COMPANY CITICORP RAISED 150 MILLION OF SUBORDINATED CAPITAL VIA AN ISSUE OF SOCALLED COLLARED FLOATING RATE EURONOTES THE 12YEAR NOTES WHICH PAY A MINIMUM INTEREST RATE OF 6 A MAXIMUM OF 10 AND 1/8 POINT BELOW THE LONDON INTERBANK OFFERED RATE IN BETWEEN WORKS OUT AS VERY CHEAP CAPITAL FOR CITICORP THE BUYERS ARE MAINLY SMALLER EUROPEAN INSTITUTIONAL INVESTORS EUROPEAN CURRENCY SECTORS WERE QUIET YESTERDAY WORRIED ABOUT THE POSSIBILITY THAT TODAY'S CPI REPORT COULD CONTAIN BAD NEWS FOR INTEREST RATES CORPORATE TREASURERS RUSHED TO SELL 17 BILLION OF NEW BONDS YESTERDAY AN UNUSUALLY LARGE TALLY FOR A MONDAY INCLUDED ON THE LIST OF CORPORATE BORROWERS WERE THE FINANCE SUBSIDIARIES OF THE GIANT US AUTOMOBILE COMPANIES CHRYSLER'S CHRYSLER FINANCIAL CORP UNIT SOLD 250 MILLION OF FIVEYEAR NOTES AND ASSOCIATES CORP A UNIT OF FORD MOTOR CO SOLD 300 MILLION OF SEVENYEAR NOTES THAT WAS IN ADDITION TO GMAC'S EUROBOND OFFERING THE CHRYSLER FINANCIAL OFFERING WAS THE MOST NOTABLE OF YESTERDAY'S OFFERINGS INVESTORS SAID THE ISSUE SOLD WELL ALTHOUGH THE YIELD WAS A LITTLE LOWER THAN EXPECTED FOR A COMPANY WITH CHRYSLER'S CREDIT RATING IT APPEARS THAT THE MARKET HAS UPGRADED CHRYSLER AND ITS UNITS TO A LOW INVESTMENTGRADE RATING AHEAD OF THE RATING AGENCIES SAID GEOFFREY KURINSKY WHO MANAGES A CORPORATE BOND FUND FOR MASSACHUSETTS FINANCIAL SERVICES CHRYSLER FINANCIAL IS CURRENTLY RATED BA1 BY MOODY'S AND DOUBLEBPLUS BY S&P BOTH JUNK BOND RATINGS CHRYSLER'S FIVEYEAR NOTES WERE PRICED WITH A 65 COUPON TO YIELD 6542 A SPREAD OF 137 PERCENTAGE POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE NOTES OFFERED VIA MERRILL LYNCH & CO WERE EXPECTED TO BE PRICED ROUGHLY 010 PERCENTAGE POINT HIGHER PRICES OF MORTGAGEBACKED ISSUES ENDED ABOUT EVEN WITH FRIDAY'S LEVELS IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR JULY DELIVERY FINISHED 1/32 HIGHER AT 100 7/8 FEDERAL HOME LOAN MORTGAGE CORP GOLD AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED UNCHANGED AT 101 3/32 AND 100 30/32 RESPECTIVELY IN THE PRIMARY MARKET FIRST BOSTON CORP LAUNCHED A 576 MILLION 13PART OFFERING OF PASSTHROUGH CERTIFICATES BACKED BY DEPARTMENT OF VETERANS AFFAIRS MORTGAGE LOANS PRICES FOR ISSUE MIGHT NOT BE SET UNTIL TOMORROW VA LOANS ARE GUARANTEED BY THE FULL FAITH AND CREDIT OF THE US GOVERNMENT WHILE ISSUES OF FREDDIE MAC AND THE FANNIE MAE CARRY AN IMPLICIT GOVERNMENT GUARANTEE ALSO TWO OUTSTANDING DEALS WERE INCREASED FREDDIE MAC GOLD 1548 WAS INCREASED TO 750 MILLION FROM 500 MILLION THE ISSUE USES 7 SECURITIES AND WAS PRICED BY UBS SECURITIES INC ALSO FANNIE MAE DOUBLED STRIP TRUST 231 TO 16 BILLION FROM 800 MILLION COMANAGED BY THREE UNDERWRITERS STRIP TRUST 231 IS COLLATERALIZED BY FANNIE MAE 75 ISSUES PRICES OF MUNICIPAL BONDS CLOSED NARROWLY MIXED AFTER BARELY BUDGING ALL SESSION PRICES ENDED GENERALLY 1/4 POINT LOWER TO 1/8 HIGHER THE MARKET HAD LITTLE LIFE BEFORE TODAY'S RELEASE OF THE MAY CPI REPORT AND THE START OF A SUPPLY DELUGE THAT'S EXPECTED TO BRING IN MORE THAN 5 BILLION OF TAXEXEMPT SECURITIES AMONG ACTIVELY TRADED ISSUES THE MASSACHUSETTS WATER RESOURCE AUTHORITY'S 500 SERIES B REFUNDING BONDS OF 2022 CLOSED UNCHANGED AT 86 3/4 TO YIELD 596 THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 570 SERIES A REVENUE REFUNDING BONDS OF 2017 FOR NUCLEAR PROJECT NO 1 FINISHED 1/8 POINT LOWER AT 97 1/4 TO YIELD 589 THERE WASN'T MUCH ACTION IN THE PRIMARY MARKET BUT DEALINGS ARE EXPECTED TO PICK UP SHARPLY TODAY RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR 9306150125 930615 SUNBEAM OWNER SAYS SETRAKIAN RESPONSIBLE FOR DISCARDING FILES PROVIDENCE RI A PARTNERSHIP THAT CONTROLS SUNBEAMOSTER CO SAID ROBERT SETRAKIAN CHIEF FINANCIAL OFFICER WAS RESPONSIBLE FOR DESTROYING FILES SOUGHT AS EVIDENCE IN A COURT CASE THAT COULD DECIDE WHO RUNS THE HOUSEHOLD PRODUCTS CONCERN IN PAPERS FILED IN DELAWARE CHANCERY COURT THE PARTNERSHIP SAID THAT MR SETRAKIAN WHO TOOK AN INDEFINITE LEAVE OF ABSENCE FROM THE COMPANY LAST WEEK ORDERED A SECRETARY TO GET RID OF THE DOCUMENTS WHICH WERE FILES KEPT BY FORMER CHAIRMAN PAUL KAZARIAN THE PARTNERSHIP WHICH OWNS 77 OF SUNBEAM'S SHARES IS CONTROLLED BY NEW YORK MONEY MANAGERS MICHAEL PRICE AND MICHAEL STEINHARDT MR KAZARIAN WAS OUSTED AS CHAIRMAN IN JANUARY AND IS FIGHTING IN COURT TO REGAIN HIS POSITION MR KAZARIAN HAS PORTRAYED THE FILES AS CRITICAL TO HIS CASE MR SETRAKIAN COULD NOT BE REACHED FOR COMMENT QUESTIONS ABOUT THE MISSING DOCUMENTS WERE FIRST RAISED WHEN MR SETRAKIAN AND MICHAEL LEDERMAN A SUNBEAM DIRECTOR AND GENERAL COUNSEL TOOK PAID LEAVES FROM THE COMPANY MONDAY THE SAME DAY THE COMPANY DIVULGED THAT DOCUMENTS WERE MISSING AS GENERAL COUNSEL MR LEDERMAN HAD RESPONSIBILITY FOR DOCUMENTS PERTAINING TO LEGAL MATTERS A LETTER FROM MR KAZARIAN'S LAWYERS FILED IN THE CHANCERY COURT STATES THAT MR SETRAKIAN SUPERVISED THE DESTRUCTION OF MANY OF THE DOCUMENTS A SUNBEAM SPOKESMAN WOULD NOT SAY WHETHER THE PAID LEAVES BY MESSRS LEDERMAN OR SETRAKIAN WERE LINKED TO THE DESTRUCTION OF THE DOCUMENTS SUNBEAM'S BOARD SAYS IT FIRED MR KAZARIAN BECAUSE OF HIS ERRATIC BEHAVIOR AND DECISIONS HE MADE THAT WOULD HARM THE COMPANY MR KAZARIAN ASSERTS HE WAS FORCED OUT SO THAT TWO LARGE INSTITUTIONAL INVESTORS COULD MAXIMIZE THEIR PROFITS AND IS SUING THE COMPANY FOR DEFAMATION AND DAMAGES 9306150124 930615 MICROSOFT TO CONTINUE BUYBACK REDMOND WASH MICROSOFT CORP SAID IT WILL CONTINUE ITS STOCK REPURCHASE PROGRAM THROUGH ITS NEXT FISCAL YEAR WHICH ENDS JUNE 30 1994 THE SOFTWARE COMPANY SAID IT HAS REPURCHASED ABOUT 31 MILLION SHARES SO FAR TO PROVIDE TO EMPLOYEES AND WILL CONTINUE TO BUY BACK AN UNSPECIFIED AMOUNT OF STOCK 9306150123 930615 WHO'S NEWS SEARCH EXPLORATION INC SEARCH EXPLORATION INC DALLAS J ROBERT DOBBINS PRESIDENT OF DOBBINS CAPITAL CORP WAS ADDED TO THE BOARD OF THIS EXPLORATION AND DEVELOPMENT COMPANY EXPANDING ITS SIZE TO FIVE DOBBINS CAPITAL IS THE MANAGING GENERAL PARTNER OF DOBBINS PARTNERS LP WHICH OWNS 56 OF SEARCH EXPLORATION 9306150122 930615 BUSINESS WORLD JOBS NEEDN'T BE LOST TO LOWPAY VACUUM BY TIM W FERGUSON JOHN J JACK MURPHY THE CHAIRMAN AND CEO OF DRESSER INDUSTRIES HAS ONE WORD TO PASS ALONG TO FELLOW DALLAS BUSINESSMAN ROSS PEROT SPAIN THAT IS MR MURPHY'S REJOINDER TO WAYOFFBASE MR PEROT ON THE SUBJECT OF NAFTA THE NORTH AMERICAN FREE TRADE AGREEMENT NAFTA HAS BECOME A FAVORITE BONE OF OUR PET POLITICAL TERRIER WHO ARGUES THAT AMERICAN INDUSTRY WILL BE SUCKED SOUTH OF THE BORDER BY LOW LABOR COSTS IF THAT WERE SO RESPONDS MR MURPHY WHOSE COMPANY IS A 5 BILLION SELLER OF OILDRILLING EQUIPMENT AND SERVICES THEN THE INCLUSION OF SPAIN AND PORTUGAL IN AN INCREASINGLY OPEN EUROPEAN COMMUNITY SHOULD HAVE OPENED UP A RUSH OF CONTINENTAL MANUFACTURERS TO THAT LOWERWAGE TURF JUST THE OPPOSITE HE SAYS COMPANIES HAVE SPURNED SPAIN HE GOES ON BECAUSE LOWER TRADE BARRIERS PERMIT THEM TO CONCENTRATE PRODUCTION IN THE MOST EFFICIENT SITES SPANISH PLANTS ARE SMALL WITH A HISTORY OF STATE SUBSIDIES DRESSER ITSELF IS CONSOLIDATING FACILITIES INTO FRANCE PRIMARILY ABOUT TWOTHIRDS OF ITS BUSINESS IS DONE ABROAD AT THE SAME TIME THE MARKET FOR PRODUCTS IN SPAIN GREW RAPIDLY JUST AS NAFTA BOOSTERS PROJECT FOR MEXICO AND CAN NOW BE SERVED BY IMPORTS CONSUMPTION HAS SLACKENED RECENTLY ALONG WITH DEMAND IN THE REST OF EUROPE BUT SPAIN IS STILL MORE A BUYER THAN A MAKER UNEMPLOYMENT IS 22 AND WAGE COSTS THOUGH STILL RELATIVELY LOW ROSE APPRECIABLY IN THE LATE 1980S THE KEY TO UNDERSTANDING INVESTMENT PATTERNS MR MURPHY EXPLAINS IS TO PUT LABOR EXPENSES IN PROPER PERSPECTIVE AT DRESSER HE SAYS THEY AMOUNT TO ABOUT 15 OF TOTAL PRODUCTION COSTS SURE THIS PERCENTAGE WILL BE MUCH HIGHER IN SOME BUSINESSES BUT IN THOSE THAT MOST INTENSELY USE CAPITAL IN OTHER WORDS THOSE THAT TEND TO HAVE THE BETTERPAYING JOBS THE WAGEANDBENEFITS COMPONENT IS GOING TO MATTER LESS MR MURPHY BELONGS TO THE BUSINESS COUNCIL THE ROSTER OF AMERICA'S CORPORATEEXECUTIVE ELITE BUT IS AN ESPECIALLY VOCAL EXPONENT OF TRADE LIBERALIZATION THAT PUTS HIM IN LINE WITH 90 TO 95 OF HIS CORNEROFFICE COLLEAGUES ON NAFTA BUT CAN BE A MATTER OF MORE CONTENTION ON BROADER QUESTIONS OF WORLD COMMERCE FOR INSTANCE HE DISPARAGES THE IMPORTANCE OF WHETHER AN AIRPLANE IS MADE IN EUROPE AN ALLUSION TO THE NOISY QR07000016QUARREL OVER SUBSIDIES TO AIRBUS INDUSTRIE THAT PREOCCUPIES SO MANY BUSINESS AND POLITICAL LEADERS WHO FEAR FOR US JOBS MR MURPHY REMARKS THAT JET BUILDING ISN'T TURNING OUT TO BE SUCH A SMART PLAY THESE DAYS HE ALIGNS HIMSELF WITH TRADITIONAL ECONOMIC BELIEF IN COMPARATIVE ADVANTAGE IN CONTRAST TO THE MOST PRONOUNCED VIEW FROM THE CLINTON ADMINISTRATION THAT NATIONS CREATE THEIR OWN COMPETITIVE EDGES THROUGH ACTIVIST POLICIES IT'S STILL DIFFICULT TO KNOW WHERE THE CLINTONITES STAND ON ATTACHING DOMESTIC POLITICAL CONDITIONS TO NAFTA MR MURPHY SAYS DON'T FIDDLE WITH IT BUT THE DRESSER CHIEF IS AGAINST RAISING TRADE TENSIONS WITH JAPAN AS THE WHITE HOUSE AND SOME OF ITS BUSINESS BUDDIES HAVE DONE DEMANDING REDUCTION IN A BILATERAL TRADE DEFICIT OR WORSE INSISTING ON DIFFERENT OUTCOMES IN CERTAIN ECONOMIC SECTORS IS IN MR MURPHY'S MIND AN ERROR SOME OF THESE NUMBERS ARE GETTING BADLY DISTORTED ANYWAY HE SAYS THE BIG SHARE OF THE OVERALL US TRADE GAP THAT IS ATTRIBUTABLE TO OIL IMPORTS RARELY GETS MENTIONED ANYMORE HE COMPLAINS THIS PROMPTS A BRIEF DISCOURSE ON IMPEDIMENTS TO THE US DRILLING INDUSTRY PARTICULARLY WHAT HE VIEWS AS POINTLESS ENVIRONMENTAL ENCUMBRANCES IN ALASKA ANOTHER BASIC FACTOR IS THE PROPENSITY OF AMERICANS TO BUY FOREIGN PRODUCTS WHICH MR MURPHY SAYS IS WITHOUT PARALLEL AMONG THE INDUSTRIALIZED NATIONS IN GENERAL MR MURPHY WOULD ENCOURAGE AMERICAN BUSINESS BY LIGHTHANDED GOVERNMENT POLICIES BUT LIKE MOST CEOS HE TURNS OUT TO HAVE SOME EXCEPTIONS TO THAT RULE MR MURPHY STRONGLY FAVORS US EXPORT SUBSIDIES IF MADE GENERALLY AVAILABLE ALTHOUGH SUCH BOOSTER SHOTS ARE A FREQUENT SORE POINT IN INTERNATIONAL WRANGLES HE MAINTAINS THEY HAVE BECOME COMMONPLACE OVER THE LAST 40 YEARS AND AREN'T FUNDAMENTALLY COUNTER TO FREE TRADE BUT THE US HAS BEEN A PIKER IN HIS VIEW AND THAT'S A REASON DRESSER KEEPS NEARLY A QUARTER OF ITS PRODUCTION IN EUROPE TO TAKE ADVANTAGE OF MORE LUCRATIVE EXPORT FINANCING AND POLITICALRISK INSURANCE DRESSER IS PROSPECTING FOR ORDERS IN THE OIL FIELDS OF THE FORMER SOVIET UNION IT HAS WORKED WITH THE USRUSSIAN BUSINESS COUNCIL OF WHICH MR MURPHY IS A FORMER CHAIRMAN TO PUSH FOR A 700 MILLION PACKAGE OF EXPORT AID FOR US PRODUCERS THE WHITE HOUSE PLANS TO MAKE THAT PART OF THE BAILOUT FOR MOSCOW SO THE MESSAGE ISN'T QUITE LAISSEZ FAIRE BUT TODAY WHEN EVERYTHING FROM APPLE BARRIERS IN JAPAN TO 58CENT AN HOUR JOBS IN MEXICO SUPPOSEDLY THREATEN THE AMERICAN WAY OF LIFE ANY SORT OF STANDUP ACT FROM THE CORPORATE QUARTER IS APPRECIATED BY TRADEHUNGRY CONSUMERS AND MR MURPHY'S SPANISH LINE IS A GOOD ONE 9306150121 930615 WHO'S NEWS DIED LEONARD F MCCOLLUM 91 FORMER CHAIRMAN OF CONTINENTAL OIL CO WHICH PRECEDED CONOCO INC A DUPONT CO UNIT SUNDAY IN HOUSTON NORMAN E AUERBACH FORMER CHAIRMAN OF THE INTERNATIONAL ACCOUNTING FIRM COOPERS & LYBRAND 73 IN TUCSON ARIZ 9306150120 930615 TECHNOLOGY VISUAL CYBERNETICS TECHNOLOGY NEW YORK VISUAL CYBERNETICS CORP SAID THAT THE LOYOLA UNIVERSITY MEDICAL CENTER AGREED TO COLLABORATE IN THE CLINICAL TESTING OF ITS CYTOIMAGING TECHNOLOGY FOR CANCER DETECTION THE TECHNOLOGY WHICH PROVIDES FOR MICROSCOPIC CANCER DETECTION THROUGH THE USE OF COMPUTER VISION AND IMAGE ANALYSIS WILL BE USED AT THE MEDICAL CENTER TO STUDY DNA CONTENT OF PROSTATE CELLS TO DETERMINE WHETHER THEY ARE CANCEROUS 9306150119 930615 BUSINESS BRIEF REEBOK STOCK SKIDS AHEAD OF DISCLOSURE THAT QUARTERLY PROFIT TO TRAIL FORECASTS STOUGHTON MASS REEBOK INTERNATIONAL LTD SAID IT EXPECTS TO REPORT SECONDQUARTER EARNINGS OF 44 CENTS TO 48 CENTS A SHARE CONSIDERABLY LOWER THAN ANALYSTS' ESTIMATES OF 56 CENTS TO 60 CENTS CITING SLUGGISH US SALES THE FOOTWEAR AND APPAREL MAKER ADDED THAT EARNINGS FOR THE REMAINDER OF 1993 MAY BE BELOW ANALYSTS' EXPECTATIONS MOST ANALYSTS PROJECT THAT REEBOK'S FULLYEAR EARNINGS WILL RANGE FROM 290 TO 3 A SHARE IN THE 1992 SECOND QUARTER REEBOK EARNED 458 MILLION OR 49 CENTS A SHARE ON SALES OF 702 MILLION REEBOK SAID ITS EARNINGS PER SHARE FOR THE LATEST SECOND QUARTER ARE BASED UPON AN ESTIMATED 896 MILLION SHARES COMPARED WITH 931 MILLION A YEAR EARLIER FOR ALL OF 1992 REEBOK EARNED 1148 MILLION OR 124 A SHARE INCLUDING A RESTRUCTURING CHARGE OF 1354 MILLION AND A GAIN OF 18 MILLION ON SALES OF 302 BILLION PAUL FIREMAN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID REEBOK'S LOWER SECONDQUARTER EARNINGS ARE DUE PRIMARILY TO US FOOTWEAR OPERATIONS WHICH LOWERED REVENUE BECAUSE OF A LACK OF PRODUCT IN THE KEY BASKETBALL CATEGORY HE SAID THAT A NEW PRICING POLICY AND A REPOSITIONING OF THE COMPANY'S CASUAL SHOE LINE ALSO HURT REVENUE MR FIREMAN SAID CONTINUED RECESSIONS IN CANADA AND SEVERAL MAJOR EUROPEAN MARKETS COMBINED WITH THE RELATIVE STRENGTH OF THE US DOLLAR IN MOST OF THESE COUNTRIES HAVE HELD BACK DOLLARDENOMINATED SALES GROWTH THERE IN RECENT MONTHS REEBOK'S BASKETBALL LINE HAS FACED STIFF COMPETITION FROM RIVALS INCLUDING NIKE INC LA GEAR INC AND CONVERSE INC A UNIT OF INTERCO INC REEBOK'S BLACK TOP LINE PROMOTED AS A SHOE FOR PLAYGROUND COMPETITION HAS FALLEN FROM FAVOR AMONG AMATEUR PLAYERS NOTED NEIL DAVIDSON MANAGER OF SYNDER'S INSTEP SHOES IN WASHINGTON DC IN THE PAST THREE MONTHS CONSUMERS HAVE TURNED TO NIKE'S AIR JORDANS AND PIPPENS NAMED AFTER PLAYERS FOR THE CHICAGO BULLS NOW VYING FOR THE NATIONAL BASKETBALL ASSOCIATION CHAMPIONSHIP SALES OF LA GEAR'S LIGHT GEAR HAVE PICKED UP AS A RESULT OF PUBLICITY ABOUT THE SHOE THREE MONTHS AGO WHEN WASHINGTON DC POLICE WERE ABLE TO TRACK DOWN A SUSPECT BY A LIGHT THAT GOES ON IN THE SHOE EACH TIME A WEARER'S FOOT STRIKES THE GROUND REEBOK HAS TAKEN VARIOUS ACTIONS TO IMPROVE EARNINGS AND REVENUES INCLUDING MAKING CHANGES TO ITS BASKETBALL SHOE LINE AND SIMPLIFYING SALES POLICIES THAT WERE IMPLEMENTED IN JANUARY TO DECREASE DIVERSION OF ITS PRODUCTS TO UNAUTHORIZED OUTLETS MR FIREMAN SAID HE ADDED THAT REEBOK'S CLEATED AND OUTDOOR FOOTWEAR BUSINESSES ARE DOING WELL AND THAT THE GROWTH OF REEBOK'S APPAREL BUSINESS APPEARS TO BE ACCELERATING REEBOK SAID IT PLANS TO REPORT ITS SECONDQUARTER RESULTS ABOUT JULY 22 9306150118 930615 INTERNATIONAL NAFTA OR NOT SALINAS PURSUES FREE MARKET FLURRY OF INITIATIVES LAUNCHED TO LOCK IN REFORMS BY MATT MOFFETT STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY WITH THE PROPOSED NORTH AMERICAN FREE TRADE AGREEMENT BOGGED DOWN IN US POLITICS PRESIDENT CARLOS SALINAS DE GORTARI HAS OPENED SEVERAL NEW FRONTS IN THE BATTLE TO REFORM THE MEXICAN ECONOMY IN RECENT WEEKS MR SALINAS HAS UNLEASHED A FLURRY OF LEGISLATIVE INITIATIVES AND PRESIDENTIAL DECREES AIMED AT GIVING PERMANENCE TO MEXICO'S FREEMARKET POLICIES WITH OR WITHOUT THE COMMON MARKET UNDER NAFTA THAT WOULD LINK THE ECONOMIES OF MEXICO THE US AND CANADA THE INITIATIVES WHICH RANGE FROM A BILL TO GRANT AUTONOMY TO THE CENTRAL BANK TO A MEASURE TO OFFER PRIVATE INVESTORS 50YEAR OPERATING CONCESSIONS AT STATECONTROLLED SEAPORTS ARE DESIGNED TO REASSURE INVESTORS WHO WERE ATTRACTED TO MEXICO BY THE CONTINUITY THAT NAFTA IS EXPECTED TO ENSURE IN ECONOMIC POLICY ANALYSTS SAY THAT BY SEEKING ALTERNATIVE VEHICLES FOR LOCKING IN HIS REFORMS PRESIDENT SALINAS HOPES TO AVOID MEXICO'S NIGHTMARE SCENARIO A DELAY OR REJECTION OF NAFTA FOLLOWED BY A PANIC AMONG INVESTORS AND COLLAPSE OF THE MEXICAN PESO MEXICAN OFFICIALS STILL MAINTAIN THAT NAFTA WILL BE APPROVED BY THE US CONGRESS IN TIME FOR ITS SCHEDULED JAN 1 ENACTMENT BUT REALISTICALLY PROSPECTS FOR PROMPT PASSAGE OF NAFTA HAVE FALLEN WITH THE POLL RATINGS OF PRESIDENT CLINTON WHO WILL NEED PLENTY OF POLITICAL MUSCLE TO SELL THE CONTROVERSIAL ACCORD THE PROPOSALS MR SALINAS HAS SENT TO THE MEXICAN CONGRESS WHERE HIS RULING PARTY HAS A WIDE MAJORITY TOUCH ON MATTERS AS DIVERSE AS INSIDER TRADING AND INTERNATIONAL ARBITRATION MOST SIGNIFICANT HAS BEEN A BILL GRANTING INDEPENDENCE TO THE CENTRAL BANK THE MEASURE PASSED BY THE MEXICAN CONGRESS LAST WEEK CREATES A BOARD OF BANK GOVERNORS WITH LONG STAGGERED TERMS THAT LARGELY REMOVES THE VITAL LEVER OF MONETARY POLICY FROM THE HANDS OF MR SALINAS'S SUCCESSORS AN INDEPENDENT CENTRAL BANK WOULD IMPLY THAT THE NEXT MEXICAN PRESIDENT WILL FIND IT QUITE DIFFICULT TO REVERSE THE ECONOMIC REFORMS CURRENTLY IN PLACE NOTES A REPORT BY FIRST BOSTON CORP OTHER MEASURES HAVE RECEIVED LESS ATTENTION BUT ARE STILL WELCOMED BY INVESTORS FOR EXAMPLE THE FORMER LAW OF NATIONALITY HAD REQUIRED ALL CORPORATIONS WITH ANY FOREIGN OWNERSHIP TO OBTAIN A SPECIAL PERMIT FROM THE FOREIGN MINISTRY THAT COULD BE A TROUBLESOME DETAIL BECAUSE THE FOREIGN MINISTRY BUREAUCRACY IS A BASTION OF ECONOMIC NATIONALISM THE NEW LAW WAIVES THE PERMIT REQUIREMENT ANOTHER LONGSTANDING PRESIDENTIAL INITIATIVE BORE FRUIT THIS MONTH WHEN MEXICO RECEIVED AN INVITATION FOR FULL MEMBERSHIP IN THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT THOUGH IT COULD TAKE AS LONG AS 18 MONTHS TO NEGOTIATE ENTRY MEXICAN OFFICIALS SAY THE INVITATION TO JOIN PUTS A PRESTIGIOUS IMPRIMATUR ON MEXICO'S ECONOMIC POLICIES WHICH THE OECD CHARACTERIZED AS CAREFULLY DESIGNED COMPREHENSIVE AND COHERENT ATTAINING OECD MEMBERSHIP WOULD ALSO MAKE A CLEAR CONTRIBUTION TOWARD INSTITUTIONALIZING MR SALINAS'S FREEMARKET POLICIES OECD MEMBERS A MEXICAN OFFICIAL NOTES ARE REQUIRED TO MAINTAIN CERTAIN STANDARDS OF OPENNESS IN INVESTMENT AND TRADE THE GOVERNMENT STRATEGY IS SOMEWHAT PARADOXICAL MR SALINAS IS USING THE SWEEPING POWERS OF THE MEXICAN CHIEF EXECUTIVE TO DIMINISH THE POWER OF HIS SUCCESSORS BUT THE ACTIONS HAVE KEPT THE EXCHANGE MARKETS CALM EVEN AS PRESIDENT CLINTON'S STANDING HAS SUNK AND ROSS PEROT HAS STEPPED UP ATTACKS ON NAFTA TO BE SURE SOME SAY THE POSSIBILITY OF A PESO MELTDOWN HAS BEEN OVERBLOWN WE DON'T THINK IT'S A DISASTER SCENARIO FOR MEXICO IF NAFTA IS PUT OFF UNTIL THE FIRST OR SECOND QUARTER OF NEXT YEAR SAYS CARL ROSS AN ECONOMIST AT BANKERS TRUST SECURITIES CORP AS MUCH AS NAFTA MR ROSS EMPHASIZES MEXICO'S PRUDENT ECONOMIC MANAGEMENT WHICH HAS ACHIEVED A BUDGET SURPLUS AND INFLATION APPROACHING SINGLE DIGITS WE THINK THAT INVESTORS IN THIS MARKET ARE RELATIVELY SOPHISTICATED AND PAY MORE ATTENTION TO UNDERLYING ECONOMIC FUNDAMENTALS THAN TO US POLITICS STILL MEXICANS AND FOREIGNERS INTERESTED IN MEXICO HAVE AN ENORMOUS PSYCHOLOGICAL STAKE IN NAFTA WHICH MR SALINAS HAD TOUTED PERHAPS EXCESSIVELY AS MEXICO'S TICKET TO THE FIRST WORLD HOW OBSESSED ARE SOME WITH NAFTA WHEN THE MEXICAN NATIONAL SOCCER TEAM DEFEATED CANADA'S SQUAD NOT LONG AGO A MEXICAN SPORTSWRITER ASKED THE CANADIAN COACH IF THE GAME MIGHT HARDEN HIS COUNTRY'S POSITION IN TRADE NEGOTIATIONS IF FURTHER PROBLEMS ARISE WITH NAFTA MR SALINAS COULD PLAY A FEW MORE CARDS MOST NOTABLY MEXICO'S FOREIGN INVESTMENT LAW THE DRAFT OF A NEW LAW PROVIDING FOR A MODEST OPENING TO EXTERNAL CAPITAL HAS BEEN CIRCULATING FOR MONTHS IF NAFTA FACES A SERIOUS HANGUP MR SALINAS MIGHT CALM THE MARKETS BY PRESENTING AN INITIATIVE FOR AN EVEN BROADER INVESTMENT OPENING ANALYSTS SAY 9306150116 930615 SALANT BUYS ALABAMA PLANT NEW YORK APPAREL COMPANY SALANT CORP SAID IT ACQUIRED A MANUFACTURING FACILITY IN ANDALUSIA ALA FROM CLUETT PEABODY & CO THE 227000SQUAREFOOT FACILITY WILL SUPPLY SALANT'S MANHATTAN MENSWEAR GROUP WITH ADDITIONAL DOMESTIC PRODUCTION FOR ITS MANHATTAN JOHN HENRY AND RON CHERESKIN DRESS SHIRTS THE PLANT WILL EMPLOY ABOUT 400 SALANT SAID 9306150115 930615 COSMETIC CENTER'S SALES RISE SAVAGE MD COSMETIC CENTER INC SAID CONSOLIDATED RETAIL SALES FOR THE MONTH ENDED MAY 21 WERE UP 102 TO 10 MILLION FROM 91 MILLION WHOLESALE SALES WERE DOWN 32 TO 351000 FROM 522000 THOUGH ALSO COMPARABLESTORE SALES WERE OFF 2 TO 89 MILLION THE RETAILER OF COSMETICS OPENED ITS 46TH STORE IN CHARLOTTESVILLE VA LAST MONTH AND PLANS TO OPEN ANOTHER STORE IN GLENVIEW ILL DURING THE SUMMER 9306150114 930615 ECONOMY BUSINESS INVENTORIES GREW BY 01 IN APRIL SEVENTH STRAIGHT RISE WASHINGTON BUSINESS INVENTORIES ROSE IN APRIL FOR THE SEVENTH CONSECUTIVE MONTH CLIMBING 01 TO 86044 BILLION THE COMMERCE DEPARTMENT SAID THE APRIL EXPANSION FOLLOWED A REVISED 06 INCREASE IN MARCH THE RATIO OF INVENTORY TO SALES WHICH REPRESENTS THE NUMBER OF MONTHS IT WOULD TAKE TO DEPLETE STOCKPILES AT THE CURRENT SALES PACE ROSE TO 148 FROM 147 THE MONTH BEFORE THE RATIO IS AT ITS HIGHEST POINT SINCE NOVEMBER WHEN IT WAS 149 BUSINESS SALES FELL 02 IN APRIL FOR THE SECOND CONSECUTIVE MONTH TO 5826 BILLION HERE IS A SUMMARY OF THE COMMERCE DEPARTMENT'S REPORT ON BUSINESS INVENTORIES AND SALES IN FEBRUARY THE FIGURES ARE IN BILLIONS OF DOLLARS SEASONALLY ADJUSTED 9306150113 930615 TECHNOLOGY ADVANCED MICRO SEEKS A CHIP OFF ITS OWN BLOCK BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL ADVANCED MICRO DEVICES INC IN A BID TO FREE ITSELF FROM INTEL CORP'S LEGAL WEB HAS QUIETLY BEGUN DEVELOPING A NEW FAMILY OF CHIPS WITH AN ORIGINAL DESIGN THAT STILL RUNS SOFTWARE WRITTEN FOR INTEL CHIPS ADVANCED MICRO HAS A PROFITABLE BUSINESS CLONING INTEL'S CHIPS BUT HAS BEEN DOGGED BY INTEL'S CHARGES THAT ITS CLONES VIOLATE INTEL'S COPYRIGHTS NOW ADVANCED MICRO'S CHIEF EXECUTIVE OFFICER WJ SANDERS III SAYS HIS COMPANY IS WORKING ON CHIPS OF A COMPLETELY NEW DESIGN THAT DON'T USE ANY CONTESTED COPYRIGHTS ADVANCED MICRO WILL BEGIN SHIPPING THE NEW FAMILY'S FIRST MEMBER CODENAMED K5 IN LATE 1994 MR SANDERS SAYS WHILE ITS INTERNAL CIRCUITRY OR ARCHITECTURE WILL BE COMPLETELY DIFFERENT FROM THAT OF INTEL'S CHIPS HE SAYS THE K5 WILL RUN THE MICROSOFT CORP OPERATING SOFTWARE THAT RUNS ON THE INTEL CHIPS THAT ARE THE MOST WIDELY USED BRAINS OF PERSONAL COMPUTERS OUR LONGTERM STRATEGY IS TO BE COMPLETELY INDEPENDENT OF INTEL'S ARCHITECTURE MR SANDERS SAYS MR SANDERS MAY HAVE HAD LITTLE CHOICE BUT TO DECLARE INDEPENDENCE INTEL SANTA CLARA CALIF IS MAKING FAR MORE VARIATIONS OF ITS CHIPS THAN IN THE PAST LEAVING FEWER HOLES FOR ADVANCED MICRO BASED IN SUNNYVALE CALIF TO EXPLOIT WITHOUT ITS OWN NEW ARCHITECTURE AND ADVANCED MICRO'S MAJOR PATENT AND COPYRIGHT AGREEMENTS WITH INTEL INCLUDING THOSE STILL CONTESTED IN THE COURTS RUN OUT IN 1995 INTEL WILL NOT LEAVE THEM THAT KIND OF OPPORTUNITY TO GAIN MARKET SHARE SIMPLY BY SELLING CHIPS INTO NICHES INTEL DOESN'T SERVE SAYS MICHAEL SLATER EDITOR OF THE NEWSLETTER MICROPROCESSOR REPORT IT HAS TO DO SOMETHING MORE INNOVATIVE THE MARKET CONDITIONS HAVE CHANGED MOREOVER ADVANCED MICRO'S CURRENT CLONING STRATEGY HAS PRODUCED YEARS OF LEGAL BATTLES WITH INTEL THAT HAVE BECOME A SERIOUS DISTRACTION TO ADVANCED MICRO'S BUSINESS ON JUNE 4 A CALIFORNIA APPEALS COURT RULED THAT AN ARBITRATOR OVERSTEPPED HIS AUTHORITY WHEN HE GAVE ADVANCED MICRO THE RIGHTS TO MAKE ITS VERSION OF INTEL'S 386 CHIP SPURRING A 15 DROP IN THE COMPANY'S STOCK IN ONE DAY STILL ADVANCED MICRO'S NEW STRATEGY CARRIES RISKS THE COMPANY NOW MAKES PINCOMPATIBLE CHIPS THAT PERSONALCOMPUTER MAKERS CAN PLUG INTO SOCKETS THAT WERE DESIGNED FOR INTEL'S CHIPS THAT ALONG WITH ADVANCED MICRO'S USE OF INTEL'S INTERNAL MICROCODE SOFTWARE MAKE ITS CLONES ATTRACTIVE TO PC MAKERS AS RELIABLE ALTERNATIVES TO INTEL'S CHIPS INTEL IS ARGUING IN SEVERAL PENDING LAWSUITS THAT ADVANCED MICRO IS USING THAT MICROCODE ILLEGALLY AND ADVANCED MICRO EXPECTS TO SHIP IN JULY A 486 CHIP THAT DOESN'T USE INTEL'S MICROCODE BUT THE CIRCUITRY IN THOSE CHIPS LIKE ADVANCED MICRO'S OTHER CLONES IS STILL LARGELY REVERSEENGINEERED FROM INTEL'S IN CONTRAST ADVANCED MICRO'S NEW CHIPS WON'T BE PINCOMPATIBLE WITH INTEL'S CHIPS THUS REQUIRING PC MAKERS THAT USE THEM TO REDESIGN OTHER COMPUTER CIRCUITRY MOREOVER WHILE ADVANCED MICRO SAYS THE K5 AND ITS SUCCESSORS THE K6 AND K7 WILL BE DESIGNED TO RESPOND IDENTICALLY TO THE SOFTWARE INSTRUCTIONS THAT ARE INTEL CHIPS' LANGUAGE THE CHIPS WILL LIKELY FACE A HIGHER HURDLE TO PROVE THEY ARE COMPATIBLE BECAUSE THE CIRCUITRY WILL BE COMPLETELY DIFFERENT MR SANDERS ARGUES THAT HE'LL GET THE LEG UP ON INTEL BECAUSE HIS NEW ARCHITECTURE WILL LET HIM MAKE CHIPS THAT ARE FAR FASTER THAN INTEL'S WHILE RUNNING ALL SOFTWARE WRITTEN FOR INTEL CHIPS INSTEAD OF FOLLOWING WITH CLONES SEVERAL YEARS BEHIND INTEL'S NEWCHIP INTRODUCTIONS ADVANCED MICRO WILL BE ABLE TO INTRODUCE ITS OWN NEWGENERATION CHIPS AT THE SAME TIME OR SOONER THAN INTEL DOES HE SAYS INTEL SAYS IT DOESN'T KNOW ENOUGH ABOUT ADVANCED MICRO'S NEW STRATEGY TO SAY WHETHER THE NEW CHIPS WILL SOLVE ALL LEGAL QUESTIONS BUT INTEL EXECUTIVES WHO HAVE LONG HELD THAT ADVANCED MICRO IS A KIND OF PARASITE ON INTEL'S INVESTMENTS SAY THEY WELCOME ANY ADVANCED MICRO EFFORT TO INNOVATE ON ITS OWN GOOD SAYS ANDREW GROVE INTEL'S CHIEF EXECUTIVE LET THEM EARN THEIR LIVING MEANWHILE MR SANDERS SAYS THE RECENT APPEALSCOURT SETBACK HASN'T HURT SALES OF ADVANCED MICRO'S 386 AND 486 CLONES ADDING THAT HE STILL EXPECTS SALES TO GROW EVERY QUARTER THIS YEAR WE DON'T THINK THIS IS GOING TO HAVE ANY NEARTERM IMPACT ON OUR ABILITY TO DO BUSINESS HE SAYS 9306150112 930615 MARKETING & MEDIA SUMMER'S MOVIEWAR PUNDITS PREDICT LOSING BATTLE FOR LAST ACTION HERO' BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD JUST A FEW WEEKS AGO PUNDITS HERE WERE SHARPLY DIVIDED OVER WHICH OF THE SUMMER'S TWO EVENT MOVIES JURASSIC PARK OR LAST ACTION HERO WOULD TAKE TOP BOXOFFICE HONORS THIS YEAR JURASSIC PARK IS OFF TO A HOT START AND WILL BE HARD TO CATCH INDUSTRY EXECUTIVES SAY BUT AFTER SEEING ADVANCE SCREENINGS OF LAST ACTION HERO WHICH OPENS FRIDAY MANY NOW ARE WONDERING IF THE COLUMBIA PICTURES' FILM STARRING ARNOLD SCHWARZENEGGER WILL EVEN FINISH SECOND THE FIRST REVIEWS OF THE MOVIE APPEARED YESTERDAY AND THEY WERE UGLY TIME MAGAZINE'S CRITIQUE WAS HEADLINED THE DINOSAUR AND THE DOG THE HOLLYWOOD REPORTER COMPARED THE MOVIE WITH SUCH CLASSIC BOMBS AS HOWARD THE DUCK AND HUDSON HAWK THE WORDOFMOUTH FROM SCREENINGS FOR THEATER OWNERS AND MEMBERS OF THE PRESS ALSO HAS BEEN ABYSMAL FOR COLUMBIA A UNIT OF SONY CORP'S SONY PICTURES ENTERTAINMENT THE STAKES ARE HUGE CONSIDERING THAT LAST ACTION HERO WHICH COSTS MORE THAN 80 MILLION IS THE MOST EXPENSIVE MOVIE OF THE SUMMER THE FILM IS THE CENTERPIECE OF A MAJOR COMPANYWIDE SYNERGY PUSH IN WHICH NEARLY EVERY SONY BUSINESS SECTOR HAS BECOME INVOLVED WITH VARIOUS PROJECTS RELATED TO THE MOVIE MCA AND ITS PARENT COMPANY MATSUSHITA ELECTRIC INDUSTRIAL CO HAVE MADE A SIMILAR BET ON JURASSIC PARK A COLUMBIA SPOKESMAN DISMISSES THE NEGATIVE BUZZ AND SAYS THE COMPANY IS ENORMOUSLY OPTIMISTIC HE ADDS THAT ONLY ABOUT 20 OF THE NATION'S CRITICS HAVE REVIEWED THE FILM SO FAR AND SOME REVIEWS ARE VERY FAVORABLE INCLUDING ONE FROM A CRITIC FOR THE LOS ANGELES AFFILIATE OF NBC WHO CALLED IT ONE PHENOMENAL MOVIE THE COLUMBIA OFFICIAL ALSO SAYS THAT THERE ARE PLENTY OF EXHIBITORS WHO ARE EXCITED ABOUT THE FILM ADDING THAT IT WILL BE SHOWN AT 2300 THEATERS THE WIDEST COLUMBIA RELEASE EVER WE DON'T DETERMINE THAT HE SAYS THAT'S ABOUT THEATEROWNER APPETITE ALSO UNLIKE MCA SONY PICTURES HASN'T PUT ALL OF ITS EGGS IN THE LAST ACTION HERO BASKET ITS TRISTAR UNIT IS HAVING SUCCESS WITH CLIFFHANGER AND THE BUZZ SURROUNDING SLEEPLESS IN SEATTLE A ROMANTIC COMEDY STARRING MEG RYAN AND TOM HANKS IS VERY STRONG THEATERS ARE ALSO EXCITED ABOUT ANOTHER COLUMBIA RELEASE IN THE LINE OF FIRE WHICH STARS CLINT EASTWOOD COLUMBIA INSIDERS SAY THE STUDIO HASN'T DEVELOPED A PLAN TO TRY TO DEFLECT THE NEGATIVITY SWIRLING ABOUT THE MOVIE BUT THEY DO SAY THEY PLAN TO EMPHASIZE THE POSITIVE REVIEWS AND ADD THAT THEY WOULD BE HAPPY WITH AN OPENING WEEKEND GROSS OF JUST 20 MILLION FILMS HAVE MADE THEIR DEBUTS AT SUCH LEVELS AND GONE ON TO 100 MILLIONPLUS BLOCKBUSTER STATUS BUT IT'S NOT EASY JURASSIC PARK IN ITS OPENING WEEKEND GROSSED 502 MILLION AT 2404 THEATERS A RECORD FOR THREEDAY OPENINGS MOVIE EXECUTIVES EXPECT THAT IT WILL BE THE NO 1 MOVIE AT THE BOX OFFICE AGAIN THIS WEEKEND THERE ARE MANY EXAMPLES HOWEVER OF TWO MAJOR MOVIES OPENING AT THE SAME TIME AND BOTH ACHIEVING HIGH GROSSES COLUMBIA EXECUTIVES HAVE BEEN SPEAKING IN SUPERLATIVES ABOUT LAST ACTION HERO FOR MONTHS AND TAGGED IT THE BIG TICKET FOR 1993 IN THEIR ADVERTISING MR SCHWARZENEGGER HASN'T BEEN SHY ABOUT TOUTING THE FILM SAYING ON A RECENT TALK SHOW THAT HE THINKS THE MOVIE IS A 10 UNIVERSAL HAS PROMOTED ITS FILM AGGRESSIVELY BUT ITS EXECUTIVES HAVE BEEN MORE LOW KEY MR SPIELBERG FOR EXAMPLE HAS ESSENTIALLY REFUSED TO TALK ABOUT THE FILM AND HAS BEEN IN POLAND FILMING HIS NEXT FEATURE WHILE COLUMBIA IS SPENDING AROUND 20 MILLION OF ITS OWN MONEY ON MARKETING COSTS IT HAS LINED UP A NUMBER OF CORPORATE SPONSORS TO HELP PITCH THE FILM BURGER KING CORP A UNIT OF GRAND METROPOLITAN PLC HAS A TIEIN GOING IN WHICH IT ALSO IS SPENDING ABOUT 20 MILLION ON TELEVISION ADS EXECUTIVES SAY IT ALSO HAS AMBITIOUS PROMOTIONS WITH VIACOM INC'S MTV NETWORK MATTEL INC IS SELLING TOYS AND TOPPS CO TRADING CARDS AND COMIC BOOKS BASED ON THE FILM 9306150111 930615 CALGON CARBON REACHES CONTRACT PITTSBURGH CALGON CARBON CORP SAID IT REACHED A THREEYEAR LABOR CONTRACT WITH THE 250 UNION MEMBERS AT ITS LARGEST PLANT THE COMPANY DECLINED TO DISCLOSE THE TERMS OF THE CONTRACT OTHER THAN TO NOTE THAT IT INCLUDES WAGE AND BENEFIT IMPROVEMENTS THE AGREEMENT REPLACES THE ONE THAT EXPIRED JUNE 6 AND HAD BEEN EXTENDED UNTIL JUNE 11 DURING NEGOTIATIONS THE UNITED STEELWORKERS OF AMERICA LOCAL 7047 WHICH REPRESENTS WORKERS AT THE CARBONPRODUCING PLANT IN CATLETTSBURG KY COULD NOT BE REACHED FOR COMMENT 9306150110 930615 DIVIDEND NEWS ETHYL CORP ETHYL CORP SAID SHAREHOLDERS WILL RECEIVE 033451 SHARE OF THE FIRST COLONY CORP SUBSIDIARY FOR EACH ETHYL SHARE HELD IN FIRST COLONY'S SPINOFF AS PREVIOUSLY REPORTED THE RICHMOND VA CHEMICAL COMPANY IS SPINNING OFF ITS REMAINING 80 STAKE EQUAL TO 396 MILLION SHARES IN FIRST COLONY AN INSURANCE COMPANY IN THE FORM OF A SPECIAL DIVIDEND THE DIVIDEND WILL BE ISSUED JULY 1 TO SHARES OF RECORD JUNE 11 CASH WILL BE PAID FOR FRACTIONAL SHARE EQUIVALENTS ETHYL HAS ABOUT 1184 MILLION SHARES OUTSTANDING ETHYL PREVIOUSLY HAD SOLD 20 OF FIRST COLONY IN AN INITIAL PUBLIC OFFERING 9306150107 930615 PENNSYLVANIA POWER REDEMPTION NEW CASTLE PA PENNSYLVANIA POWER CO CALLED FOR THE REDEMPTION OF 16 MILLION OF TWO ISSUES OF PREFERRED STOCK ALL OUTSTANDING 916 PREFERRED STOCK 100 PAR VALUE WILL BE REDEEMED JULY 16 AT 10229 A SHARE PLUS ACCRUED DIVIDENDS OF FIVE CENTS A SHARE THE 848 PREFERRED STOCK WILL BE REDEEMED AT 10308 A SHARE PLUS ACCRUED DIVIDENDS OF 118 A SHARE PENNSYLVANIA POWER IS A UNIT OF OHIO EDISON CO 9306150106 930615 YOUR MONEY MATTERS SAVING FOR RETIREMENT DON'T BANK ON IT BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL GOVERNMENT HAS JUST GIVEN PEOPLE SAVING FOR RETIREMENT ANOTHER REASON NOT TO KEEP THEIR MONEY IN THE BANK OR AT LEAST IN BANK DEPOSITS EFFECTIVE DEC 19 THE MAXIMUM INSURANCE COVERAGE AN INDIVIDUAL DEPOSITOR CAN GET FOR SELFDIRECTED RETIREMENT ACCOUNTS HELD IN ONE BANK WILL DROP TO 100000 FROM 400000 THE CHANGE WILL APPLY TO DEPOSITORS WITH INDIVIDUAL RETIREMENT ACCOUNTS KEOGH RETIREMENT PLANS TO WHICH SELFEMPLOYED WORKERS MAKE TAXDEDUCTIBLE CONTRIBUTIONS 401K PLANS ESTABLISHED BY CORPORATIONS AND 457 PLANS FOR EMPLOYEES OF STATE AND LOCAL GOVERNMENTS AND NONPROFIT ORGANIZATIONS CURRENTLY A DEPOSITOR CAN GET 100000 OF INSURANCE COVERAGE FOR EACH OF THOSE FOUR TYPES OF RETIREMENT ACCOUNTS IN ANY ONE BANK BUT WITH THE NEW RULES ISSUED BY THE FEDERAL DEPOSIT INSURANCE CORP TO IMPLEMENT A 1991 LAW THE ONLY WAY TO GET MORE THAN 100000 COVERAGE WILL BE TO SPREAD THE ACCOUNTS AMONG DIFFERENT BANKS BUT AT A TIME WHEN THE AVERAGE YIELD ON FIVEYEAR CERTIFICATES OF DEPOSIT IS UNDER 5 AND A ONEYEAR CD OFFERS ABOUT 3 THE DROP IN INSURANCE COVERAGE SHOULD SPUR INVESTORS TO TAKE A FRESH LOOK AT WHERE THEY HAVE THEIR RETIREMENT MONEY IF SOMEBODY HAS THIS MUCH MONEY IN SAVINGS DEPOSITS FOR RETIREMENT THEY MAY WANT TO THINK ABOUT SOME KIND OF AN EQUITY INVESTMENT SAYS JAMES MCLAUGHLIN OF THE AMERICAN BANKERS ASSOCIATION SOMEBODY WHO HAS A LONGTERM HORIZON OUGHT TO LOOK BEYOND FIXEDINCOME INVESTMENT IN CDS HE SAYS MANY PEOPLE HAVE BEEN DOING EXACTLY THAT IN THE FIRST FOUR MONTHS OF THIS YEAR THE MONEY IN CDS UNDER 100000 FELL 22 AT THE SAME TIME HOLDINGS OF MUTUAL FUNDS ROSE 30 SOMETIME THIS SUMMER ASSETS OF MUTUAL FUNDS INCLUDING MONEYMARKET FUNDS WILL SURPASS THE 2 TRILLION HELD IN RETAIL BANK DEPOSITS SAYS AVI NACHMANY AN ANALYST AT STRATEGIC INSIGHT A NEW YORK FIRM THAT TRACKS MUTUAL FUNDS THERE ARE NO GOOD FIGURES ON THE TOTAL AMOUNT OF SELFDIRECTED PENSION ASSETS IN INSURED BANKS AND THRIFTS BUT IT'S CLEARLY A SUBSTANTIAL SUM DESPITE TODAY'S LOW RATES AT THE END OF 1992 ASSETS HELD IN IRAS ALONE TOTALED 7247 BILLION AND 2508 BILLION OR 35 WERE HELD IN BANKS AND THRIFTS ACCORDING TO THE INVESTMENT COMPANY INSTITUTE IT'S PARTLY INERTIA IT'S PARTLY THE SECURITY THAT INVESTORS FEEL FROM KNOWING THAT THERE'S NO POSSIBILITY OF LOSS OF PRINCIPAL SAYS SUSAN FREED A WASHINGTON FINANCIAL ADVISER INVESTORS ARE INHERENTLY RISKAVERSE AND THEY DERIVE A GREAT DEAL OF COMFORT FROM KNOWING THAT THEIR PRINCIPAL CAN'T DECREASE SHE SAYS THEY WANT TO SLEEP AT NIGHT BUT THE PRICE OF A GOOD NIGHT'S SLEEP COULD BE A RESTLESS RETIREMENT FOR PEOPLE BANKING ON THOSE INSURED DEPOSITS TO SEE THEM THROUGH THE GOLDEN YEARS FINANCIAL ADVISERS AGREE THAT A HEAVY DOSE OF STOCKMARKET INVESTMENTS IS THE BEST PRESCRIPTION FOR THOSE PLANNING FOR THE LONG HAUL AND THAT INCLUDES PEOPLE WHO HAVE ALREADY RETIRED THESE DAYS SOMEONE 65 CAN EXPECT TO LIVE AN AVERAGE OF 20 MORE YEARS MOVING MONEY FROM AN INSURED DEPOSIT TO A STOCKMARKET INVESTMENT IS BECOMING INCREASINGLY EASY OFTEN AS SIMPLE AS WALKING FROM A TELLER TO A BROKER SELLING FUNDS AND OTHER INVESTMENT PRODUCTS IN THE SAME LOBBY BANKS ARE CURRENTLY SELLING MORE THAN A THOUSAND MUTUAL FUNDS BOTH PROPRIETARY FUNDS THAT THEY ADVISE THEMSELVES AND FUNDS RUN BY INDEPENDENT ADVISERS THE PERFORMANCE OF BANK FUNDS AND FUNDS RUN BY TRADITIONAL MUTUALFUND COMPANIES IS COMPARABLE OVER THE PAST THREE YEARS FOR INSTANCE PROPRIETARY BANK FUNDS PRODUCED AN AVERAGE ANNUAL TOTAL RETURN INCLUDING DIVIDENDS AND PRICE CHANGES OF 1350 ACCORDING TO CDA INVESTMENT TECHNOLOGIES IN ROCKVILLE MD NONBANK STOCK FUNDS RETURNED 1356 CDA'S NUMBER'S SHOW MEMBERS OF CONGRESS AND BANK REGULATORS WORRY THAT THE INCREASING SALES OF MUTUAL FUNDS BY BANKS RAISE THE POSSIBILITY THAT SOME CUSTOMERS WILL MISTAKENLY THINK THAT THE FUNDS ARE INSURED OR BACKED BY THE FDIC BECAUSE THEY'RE SOLD BY BANKS REGULATORS HAVEN'T FOUND NATIONAL BANK TELLERS TO BE MARKETING UNINSURED INVESTMENT PRODUCTS AND HAS DISCOURAGED THIS PRACTICE BY REQUIRING SEPARATION OF DEPOSITTAKING AND SECURITIESSALES ACTIVITIES COMPTROLLER OF THE CURRENCY EUGENE LUDWIG RECENTLY TOLD CONGRESS NEVERTHELESS BANK REGULATORS ARE IN THE FINAL STAGES OF DRAFTING NEW EXAMINATION PROCEDURES FOR MONITORING MUTUALFUND SALES BY BANKS BANKS SAY THEY ARE CAREFUL TO DISCLOSE TO THEIR CUSTOMERS THE DIFFERENCE BETWEEN INSURED DEPOSITS AND UNINSURED INVESTMENTS MUTUALFUND SALES AGENTS IN CHASE MANHATTAN BANK BRANCHES REQUIRE BUYERS TO SIGN FORMS SAYING THAT THEY UNDERSTAND THE DISCLOSURES FOR INSTANCE THE BANKER IS MOTIVATED TO DO THE RIGHT THING BECAUSE HE WANTS TO KEEP THE CUSTOMER FROM TAKING THE MONEY OUT OF THE BANK ENTIRELY SAYS DIANE CASEY OF THE INDEPENDENT BANKERS ASSOCIATION WHICH REPRESENTS SMALL BANKS IF DESPITE ALL THE ADVICE TO THE CONTRARY YOU STILL WANT TO KEEP MORE THAN 100000 IN RETIREMENT DEPOSITS IN ONE BANK CHECK THE BANK'S CAPITAL LEVEL AND DEAL ONLY WITH WELLCAPITALIZED BANKS THOSE LEAST LIKELY TO FAIL HERE THE FDIC HAS CREATED A CATCH22 THE AGENCY DOESN'T ALLOW BANKS TO ADVERTISE THEIR CAPITAL LEVELS THEREFORE DEPOSITORS MUST LEARN A BANK'S CAPITAL LEVEL BY ASKING THE BANK OR BY PURCHASING A REPORT FROM THE FDIC OR FROM A PRIVATE RATING AGENCY SUCH AS SHESHUNOFF INFORMATION SERVICES CURRENTLY ABOUT 96 OF THE NATION'S COMMERCIAL BANKS ARE WELLCAPITALIZED BASED ON CRITERIA ESTABLISHED BY GOVERNMENT REGULATORS 9306150105 930615 OTC FOCUS TELECOMMUNICATIONS TECHNOLOGY ISSUES POST STRONG GAINS BUT MARKET IS MIXED BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET WAS MIXED IN LIGHT TRADING WITH TECHNOLOGY AND TELECOMMUNICATIONS STOCKS POSTING STRONG GAINS THE NASDAQ COMPOSITE INDEX CLIMBED 322 OR 046 TO 69641 DECLINING STOCKS TOPPED GAINERS 13451323 ON TOTAL VOLUME OF 2084 MILLION SHARES DOWN FROM FRIDAY'S 2352 MILLION BUOYED BY FRIDAY'S GOOD NEWS ABOUT INFLATION BUYERS CONTINUED TO BID STOCKS HIGHER THE INFLATION DATA EASED INVESTORS' FEARS OF RISING INTEREST RATES TRADERS SAID THERE WAS A LOT OF TALK ABOUT HIGH INTEREST RATES SAID LOUIS TODD HEAD OF EQUITY TRADING AT JC BRADFORD & CO IN NASHVILLE TENN BUT CASH IS STILL THE GREAT EQUALIZER THE LARGE AMOUNT OF MONEY COMING INTO MUTUAL FUNDS FORESTALLS ANY SHARP SELLOFFS MICROSOFT JUMPED 2 TO 92 APPLE COMPUTER ROSE TO 44 ADOBE SYSTEMS SURGED 3 TO 72 1/2 ORACLE LEAPT 1 5/8 TO 44 3/8 AND INTEL ADDED 5/8 TO 57 1/8 TECHNOLOGY STOCKS ARE ALL UP SAID GARY ROSENBACH MANAGER OF EQUITY TRADING AT NEEDHAM & CO NETWORKING AND SOFTWARE STOCKS ARE DOING BETTER AS SOON AS THEY ARE SOLD OFF IT SEEMS LIKE BUYERS STEP RIGHT BACK IN TELECOMMUNICATIONS STOCKS ALSO ROSE MCI COMMUNICATIONS EDGED UP 3/4 TO 55 1/4 THE GIANT LONGDISTANCE CARRIER SAID IT ENTERED INTO AN AGREEMENT IN PRINCIPLE TO PROVIDE A WIDE RANGE OF TELECOMMUNICATIONS SERVICES TO INSURANCE VALUE ADDED NETWORK SERVICES THE INSURANCE INDUSTRY'S ELECTRONIC COMMUNICATIONS NETWORK THE PACT IS VALUED AT MORE THAN 1 BILLION OVER FIVE YEARS MCCAW CELLULAR COMMUNICATIONS JUMPED 1 TO 43 AND LIN BROADCASTING CLIMBED 7/8 TO 99 3/4 BUT TELECOMMUNICATIONS WAS UNCHANGED AT 22 GOODY PRODUCTS SURGED 5 1/8 TO 23 1/2 THE COMPANY A MAKER OF HAIR ACCESSORIES SAID IT HAS AGREED IN PRINCIPLE TO MERGE WITH A SUBSIDIARY OF NEWELL UNDER TERMS OF THE AGREEMENT GOODY STOCKHOLDERS WILL RECEIVE 2475 IN CASH A SHARE NEWELL AGREED AMONG OTHER THINGS THAT FOR ONE YEAR IT WOULDN'T ACQUIRE ANY GOODY COMMON SHARES EXCEPT UNDER A MERGER PROPOSAL OR TENDER OFFER FOR ALL OF THE COMPANY'S COMMON SHARES AT A PRICE NOT LESS THAN 24 3/4 A SHARE NEWELL HOLDS ABOUT 13 OF GOODY'S STOCK QUALCOMM SOARED 4 1/2 TO 55 1/4 TIME WARNER TELECOMMUNICATIONS A UNIT OF TIME WARNER INC SAID IT WILL CONSTRUCT OPERATE AND TEST QUALCOM'S CDMA WIRELESS PERSONAL COMMUNICATIONS SYSTEMS FOR USE IN TIME WARNER CABLE'S FULL SERVICE NETWORK IN ORLANDO FLA LAST MONTH QUALCOMM FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A PROPOSED PUBLIC OFFERING OF 25 MILLION SHARES VWR DROPPED 1 1/8 TO 12 3/8 THE PHILADELPHIABASED COMPANY SAID IT EXPECTS SECONDQUARTER EARNINGS TO BE AT LEAST 25 BELOW YEAREARLIER EARNINGS OF 19 CENTS A SHARE VWR DISTRIBUTES IN THE US AND CANADA LABORATORY SUPPLIES CHEMICALS AND EQUIPMENT JERROLD B HARRIS VWR PRESIDENT SAID THAT FOR THE REMAINDER OF THIS YEAR THE COMPANY ISN'T ASSUMING BUSINESS WILL STRENGTHEN AND IS TAKING THE NECESSARY STEPS TO WORK TOWARD IMPROVING RESULTS MCCORMICK TUMBLED 2 1/4 TO 20 1/2 THE SPARKS MD MAKER OF SEASONINGS AND FLAVORINGS POSTED SECONDQUARTER EARNINGS OF 22 CENTS A SHARE DOWN FROM 23 CENTS A SHARE THE YEAR BEFORE IG LABORATORIES JUMPED 2 TO 9 1/2 THE FRAMINGHAM MASS COMPANY WAS PROFILED YESTERDAY IN THIS PAPER'S CORPORATE FOCUS COLUMN AS A COMPANY WITH SURGING REVENUE AND GROUNDBREAKING TECHNOLOGY IG'S MAJOR BUSINESSES ARE GENETIC DIAGNOSTIC SERVICES INCLUDING PRENATAL ANALYSES DNA TESTS FOR CYSTIC FIBROSIS AND OTHER SINGLEGENE DISORDERS AMERICAN PACIFIC PLUNGED 5 TO 15 1/2 THE COMPANY SAID THIOKOL ASKED AMERICAN PACIFIC'S WESTERN ELECTROCHEMICAL CO OR WECCO UNIT TO SIGN A MEMORANDUM RELEASING THIOKOL FROM ITS OBLIGATIONS UNDER EXISTING AGREEMENTS TO BUY AMMONIUM PERCHOLATE FROM WECCO AMERICAN PACIFIC SAID THIOKOL HAS BEGUN LEGAL ACTION AGAINST WECCO IN UTAH SEEKING DECLARATORY RELIEF THAT WOULD RELEASE THIOKOL FROM HAVING TO PURCHASE AMMONIUM PERCHOLATE FROM WECCO SHOWBIZ PIZZA TIME BUBBLED 1 1/8 TO 19 7/8 EVEN THOUGH PRUDENTIAL SECURITIES DOWNGRADED THE STOCK TO HOLD FROM BUY ON FRIDAY THE STOCK FELL 35 ON NEWS THAT IT WOULDN'T ACHIEVE ANALYSTS' SECONDQUARTER EARNINGS EXPECTATIONS BOCA RESEARCH FELL 2 1/4 TO 9 3/4 INDICATIONS OF WEAKENING PROFIT DRAGGED DOWN THE COMPANY'S SHARES BELOW THEIR FEBRUARY INITIAL OFFERING PRICE OF 10 BOCA WHICH MAKES PERSONAL COMPUTER MODEMS AND OTHER ADDON DEVICES SAID EARNINGS GROWTH WON'T KEEP PACE WITH SALES GROWTH IN THE SECOND QUARTER THE COMPANY BLAMED PRICE CUTS ON MODEMS AND SOME GRAPHICS PRODUCTS SKYLINK AMERICA GAINED 1 3/16 TO 2 SKYLINK SAID IT WILL ENTER THE GAMBLING INDUSTRY PROVIDING FUNDING TO BUILD AND OPERATE A RIVERBOAT GAMBLING CASINO WITH ST CHARLES GAMING CO DALLASBASED SKYLINK PROVIDES PAYPERVIEW PROGRAMMING TO HOTELS AND MOTELS 9306150104 930615 WALL STREET CASHES IN ON RTC'S PROGRAM BY ALBERT R KARR AND JOHN CONNOR STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE RESOLUTION TRUST CORP'S TWOYEAR EFFORT TO PACKAGE AND SELL ASSETS FROM COLLAPSED THRIFT INSTITUTIONS HAS BEEN A BOON TO WALL STREET RTC FIGURES SHOW THAT TO DATE 11 FIRMS PICKED BY THE AGENCY TO RUN ITS SOCALLED SECURITIZATION PROGRAM RECEIVED AN ESTIMATED 249 MILLION IN UNDERWRITING AND FINANCIAL ADVISORY FEES BEAR STEARNS CO LED THE PACK WITH 366 MILLION IN RTC UNDERWRITING AND ADVISORY FEES BUT NOW HAVING HANDLED 356 BILLION IN RTC MORTGAGEBACKED SECURITIES SINCE THE FIRST ISSUE IN 1991 WALL STREET CAN EXPECT THINNER TIMES THE SAVINGSANDLOAN CLEANUP AGENCY'S INVENTORY OF LOANS SUITABLE FOR MORTGAGEBACKED SECURITIES IS STARTING TO SHRINK AND EVENTUALLY THE RTC IS SUPPOSED TO BE SHUT DOWN IT HAS BEEN BIG BUSINESS FOR THEM WE'RE THE LARGEST CUSTOMER FOR A NUMBER OF FIRMS I'M SURE SAYS LAMAR KELLY RTC SENIOR VICE PRESIDENT FOR ASSET SALES UNDER THE RTC'S SECURITIZATION PROGRAM THE AGENCY ASSEMBLES A POOL OF HOME APARTMENTBUILDING OR COMMERCIAL MORTGAGE LOANS TYPICALLY FROM A LARGE NUMBER OF FAILED S&LS THE AGENCY THEN ISSUES NEW SECURITIES BACKED BY THOSE ASSETS SECURITIES FIRMS PROVIDE ADVICE IN HOW TO STRUCTURE AND PRICE THE OFFERINGS AND THEN UNDERWRITE THE SALES OF THE NEW SECURITIES UNDERWRITING REVENUES FROM THE SECURITIZATION PROGRAM WERE IN ADDITION TO THE HEFTY SUMS MANY WALL STREET HOUSES MADE BUYING THRIFT ASSETS DIRECTLY FROM THE RTC AND RESELLING THEM SOME INDUSTRY OFFICIALS BELIEVE THE RTC'S SECURITIZATION APPROACH WILL BE TRIED ELSEWHERE WILLIAM SEIDMAN WHO HEADED THE RTC WHEN THE SECURITIZATION PROGRAM BEGAN PREDICTS THAT THE STRATEGY WILL BE THE WAVE OF THE FUTURE AND THAT PRIVATE FINANCIAL INSTITUTIONS WILL START SECURITIZING COMMERCIAL LOANS ON A LARGE SCALE HE IS CURRENTLY A PARTNER IN COMMAC INC AN INVESTMENT FIRM THAT PLANS TO SPECIALIZE IN SECURITIZING COMMERCIAL REAL ESTATE ITSELF FOR SOME BROKERAGE HOUSES THE RTC FEES WERE A SIZABLE PORTION OF THEIR TOTAL UNDERWRITING REVENUE BEAR STEARNS FOR EXAMPLE HEADS THE LIST WITH A TWOYEAR FEE TOTAL OF 366 MILLION FOLLOWED BY MERRILL LYNCH AND SALOMON BROTHERS BEAR STEARNS'S UNDERWRITING FEES FOR ALL CUSTOMERS TOTALED 157 MILLION IN 1992 ACCORDING TO SECURITIES DATA CO THE RTC FEES WERE GUARANTEED INCOME FOR THE SELECT GROUP OF WALL STREET FIRMS THEY AVERAGED ONEHALF TO THREEQUARTERS OF A PERCENT OF THE VALUE OF THE SECURITIES ISSUE COMPARED WITH MORE THAN 2 THAT UNDERWRITERS RECEIVE ON OTHER UNDERWRITING JOBS ACCORDING TO THE RTC UNDERWRITING PROFITS WERE MUCH LESS THAN THE TOTAL FEES THE FIRMS SAY JAMES RICKARDS GENERAL COUNSEL OF GREENWICH CAPITAL MARKETS INC A GREENWICH CONN SECURITIES FIRM SAYS THE SECURITIES INDUSTRY DESERVES ENORMOUS CREDIT FOR HELPING THE GOVERNMENT COPE WITH ONE OF THE BIGGEST ASSETDISPOSAL JOBS IN HISTORY THE PROGRAM HELPED THE RTC SAVE SUBSTANTIAL SUMS OF MONEY BY UNLOADING TROUBLED LOANS FAST RTC OFFICIALS SAID ANY TIME YOU SELL 35 BILLION OF ASSETS PEOPLE ARE GOING TO MAKE BIG VOLUMES IN FEES SAYS LARRY BLUME ACTING DIRECTOR OF RTC SECURITIZATION BUT THE FEES SEEM CERTAIN TO DWINDLE AS THE RTC FINDS IT INCREASINGLY DIFFICULT TO AMASS THE VOLUME OF FAILED S&L MORTGAGES IT NEEDS FOR SECURITIZATION PACKAGES THIS YEAR THE RTC HAS OFFERED TWO PACKAGES VALUED AT 2 BILLION AND A THIRD PACKAGEIN THE 500 MILLIONTO1 BILLION RANGE WILL PROBABLY BE OFFERED SOON AFTER THAT THE SECURITIZATION OUTLOOK IS UNCERTAIN IT'S VERY MUCH WINDING DOWN SAYS MR KELLY OF THE RTC THE AGENCY'S AUTHORITY TO ACQUIRE MORE S&L ASSETS BY TAKING OVER FAILED THRIFTS IS SCHEDULED TO EXPIRE OCT 1 BUT TO DATE THE SHEER SIZE OF THE BAILOUT AGENCY'S ASSET DISPOSITION PROGRAM HAS GENERATED SOME PLUMP REALESTATERELATED REVENUES SINCE ITS 1989 INCEPTION THE RTC HAS TAKEN OVER 740 INSOLVENT THRIFTS SELLING OFF SOME 325 BILLION IN ASSETS IT HOLDS AN ADDITIONAL 87 BILLION THE SECURITIZATION APPROACH WAS ONE OF SEVERAL STRATEGIES DEVISED BY THE RTC TO HELP LIQUIDATE ASSETS OF FAILED THRIFTS QUICKLY WHILE LIMITING THE GOVERNMENT'S LOSSES BUT THE RTC'S SECURITIZATION PROGRAM PIONEERED LARGESCALE PACKAGING OF COMMERCIAL LOANS SUCH AS THOSE FOR STORES AND OFFICE BUILDINGS THEY TOTAL 77 BILLION OR 21 OF ALL SECURITIZED RTC PACKAGES THE PROGRAM HAS ITS CRITICS SEN JAMES SASSER D TENN THE SENATE BUDGET COMMITTEE CHAIRMAN SUGGESTED THAT THE SECURITIZATION PROGRAM HAS BEEN TOO COSTLY FOR TAXPAYERS HE ALSO QUESTIONED WHETHER THE REPRESENTATIONS AND WARRANTIES THAT THE RTC MAKES AS TO THE QUALITY OF THE LOANS ARE VALID TO ENSURE SALE OF THE SECURITIES THE RTC HAS FELT IT NECESSARY TO GIVE SUCH ASSURANCES THAT FOR EXAMPLE THE MORTGAGED PROPERTY IS IN GOOD REPAIR OR THE SALE AGREEMENT FOR THE REAL ESTATE IS LEGAL AND BINDING ON THE SELLER MUCH OF THE PROGRAM LENDS ITSELF TO LOTS OF QUESTIONS LOTS OF LOSS ADDED REP BRUCE VENTO D MINN A HOUSE BANKING COMMITTEE MEMBER WHILE THE EXERCISE MAY PROVIDE LESSONS FOR FUTURE REALESTATE SECURITIZATION I DON'T KNOW THAT THE GOVERNMENT SHOULD BE PAYING THE PRICE FOR THIS EDUCATION HE SAID 9306150103 930615 BUSINESS BRIEF NOVELL INC COMPUTER NETWORKING FIRM COMPLETES UNIX ACQUISITION NOVELL INC SAID IT COMPLETED ITS ACQUISITION OF THE UNIX SYSTEM LABORATORIES UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO BUT ADDED THAT THE ONETIME WRITEOFF FOR THE PURCHASE WILL BE SLIGHTLY HIGHER THAN PREVIOUSLY ANNOUNCED THE PROVO UTAH COMPUTER NETWORKING COMPANY SAID IT WILL TAKE A CHARGE OF ABOUT 270 MILLION FOR THE ACQUISITION UP FROM ITS ESTIMATE OF 250 MILLION WHEN THE DEAL WAS ANNOUNCED IN DECEMBER THE COMPANY SAID THE WRITEOFF WILL BE REFLECTED AS A CHARGE OF UP TO 85 CENTS A SHARE IN THE FISCAL THIRD QUARTER ENDING JULY 31 UNIX SYSTEM WHOSE MAIN PRODUCT IS THE UNIX OPERATING SYSTEM WIDELY USED WITH WORKSTATION DESKTOP COMPUTERS WILL BE OPERATED AS A WHOLLY OWNED SUBSIDIARY OF NOVELL NOVELL ACQUIRED THE UNIT IN EXCHANGE FOR 111 MILLION SHARES OF NOVELL STOCK THE STOCK CLOSED AT 29 UP 75 CENTS IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY AT THAT PRICE THE TRANSACTION WOULD BE VALUED AT 3219 MILLION THE ACQUISITION IS EXPECTED TO GIVE NOVELL ANOTHER CLUB IN ITS BATTLE WITH RIVAL MICROSOFT CORP THE LARGEST SUPPLIER OF PERSONAL COMPUTER SOFTWARE WHICH IS TARGETING UNIX USERS WITH ITS SOONTOBE RELEASED WINDOWS NT OPERATING SYSTEM 9306150102 930615 BUSINESS BRIEF JAMESWAY CORP VENDORS AND FACTORS REDUCE AMOUNT OF CREDIT EXTENDED JAMESWAY CORP SECAUCUS NJ SAID ITS TRADE VENDORS AND FACTORS REDUCED THE AMOUNT OF CREDIT EXTENDED AND IN SEVERAL INSTANCES REFUSED TO SHIP GOODS THE DISCOUNT RETAILER SAID IT IS EVALUATING ALTERNATIVES IN ORDER TO RESOLVE LIQUIDITY DIFFICULTIES THE COMPANY ALSO SAID THAT IT RETAINED AN INVESTMENT BANKING FIRM AND IS INVESTIGATING VARIOUS OPTIONS INCLUDING THE INFUSION OF NEW EQUITY REFINANCING OR REORGANIZATION BUT THAT NO DECISION HAS BEEN MADE JAMESWAY MADE THE ANNOUNCEMENT AFTER THE CLOSE OF TRADING ITS SHARES CLOSED AT 2125 DOWN 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING IT SAID ITS REVOLVING LINE OF CREDIT IS FULLY UTILIZED AND PAYMENTS TO MANY VENDORS ARE BEING DELAYED ALTHOUGH ITS STORES ARE GENERALLY WELL STOCKED THE COMPANY SAID IT EXPECTS THAT STORE INSTOCK POSITION AND MERCHANDISE PRESENTATION WILL CONTINUE TO BE ADVERSELY AFFECTED 9306150101 930615 LETTERS TO THE EDITOR IN FACT WE'RE STILL NOT EQUAL I WAS DEEPLY DISTURBED BY DONALD EASTMAN'S MAY 5 EDITORIAL PAGE ARTICLE THE NEW SEGREGATION IN WHICH THE AUTHOR CONFUSED PARTICIPATION IN WHAT HE CALLS BLACKONLY EXPERIENCES WITH THE DESIRE FOR SEPARATISM HISTORICALLY AFRICANAMERICANS WERE NOT AFFORDED THE RIGHT TO EQUAL EDUCATION AND IF SOME WERE LUCKY ENOUGH TO BREAK THE BARRIERS TO EDUCATION THEY WERE CONSEQUENTLY EXCLUDED FROM SOCIAL ORGANIZATIONS SUCH AS FRATERNITIES AND SORORITIES AS A RESULT INSTITUTIONS OF HIGHER EDUCATION WHOSE SOLE PURPOSE WAS TO PROVIDE EQUAL ACCESS TO EDUCATION FOR BLACKS WHO WERE CONSISTENTLY DENIED IT WERE ESTABLISHED REALITY SHOWS THAT THERE IS STILL A PRONOUNCED NEED FOR THESE INSTITUTIONS WITHIN THE BLACK COMMUNITY INSTITUTIONS SUCH AS HOWARD UNIVERSITY AND THE 17 LAND GRANT COLLEGES AND UNIVERSITIES FORMED IN 1890 HAVE FLOURISHED OVER THE YEARS AND HAVE CONTINUALLY PRODUCED SOME OF THE GREATEST MINDS THIS COUNTRY HAS TO OFFER THESE INSTITUTIONS' CONTINUED EXISTENCE IS NOT BASED ON SEPARATISM THEY HAVE EMERGED FROM THE NEED TO FIND EQUAL EDUCATIONAL OPPORTUNITY IF NOT AN AVENUE THAT IS OFTENTIMES THE ONLY ONE AVAILABLE FOR AFRICANAMERICANS ACCORDING TO FORMER PRESIDENT JIMMY CARTER THE HISTORICALLY BLACK COLLEGES OF THIS NATION HAVE PLAYED AND CONTINUE TO PLAY A UNIQUE AND IMPORTANT ROLE IN PROVIDING EDUCATIONAL OPPORTUNITIES TO MANY THOUSANDS OF STUDENTS THEY HAVE DONE SO IN THE PAST WHEN THERE WERE NO OTHER AVENUES OPEN TO THE OVERWHELMING MAJORITY OF BLACK STUDENTS THEY DO SO NOW BY CONTINUING TO PROVIDE SPECIAL OPPORTUNITIES FOR STUDENTS OF ALL RACES THE CONTINUING IMPORTANCE OF HISTORICALLY BLACK COLLEGES AND UNIVERSITIES NOT ONLY TO THE STUDENTS BUT ALSO TO THIS NATION'S SOCIAL ECONOMIC AND EDUCATIONAL LIFE CANNOT BE OVERESTIMATED PREFACE A PEOPLE AND A SPIRIT SERVING THE NATIONS OF THE WORLD CENTENNIAL ACCOMPLISHMENTS REPORTS OF THE 1890 LANDGRANT COLLEGES AND UNIVERSITIES 1990 I AM NOT SAYING THAT BLACK SEPARATISTS DO NOT EXIST WHAT I AM SAYING IS THAT TO PROCLAIM THAT THE OVERWHELMING MAJORITY OF BLACK STUDENTS WHO FEEL THE NEED TO BE EDUCATED WITH BY AND AROUND OTHER INTELLIGENT BLACK PEOPLE IS AIDING AND ABETTING THE RESEGREGATION OF AMERICAN COLLEGES AND SCHOOLS IS UTTERLY LUDICROUS TO DOWNPLAY THE EXTENSIVE CONTRIBUTIONS MADE BY THESE INSTITUTIONS BY CLAIMING HARM TO INTEGRATION EFFORTS IS AN UNFORTUNATE CONCLUSION FOR HIM TO MAKE I AGREE WITH MR EASTMAN THAT SEGREGATION IS THE BURDEN OF THE NEGRO AND THE SHAME OF AMERICA BUT IT IS NOT A DIRECT RESULT OF THE BLACK EDUCATIONAL SYSTEM NOR DOES IT EMANATE FROM BLACK BEAUTY PAGEANTS CLUBS OR SOCIAL ORGANIZATIONS ONLY WHEN WE AS A NATION BEGIN TO ADDRESS NOT THE FACT THAT RACIAL DIVISIVENESS EXISTS BUT THE ORIGINATION AND RAMIFICATIONS THEREOF WILL WE BE ABLE TO TRULY PROCLAIM THE TENETS OF OUR CONSTITUTION THAT ALL MEN ARE IN FACT CREATED EQUAL 9306150100 930615 BUSINESS BRIEF MCDONNELL DOUGLAS CORP COMPANY PREPARES FOR STRIKE PLANNED BY AEROSPACE UNION MCDONNELL DOUGLAS CORP SAID IT WAS SURPRISED BY A VOTE TO STRIKE BY A 7500MEMBER AEROSPACE WORKERS UNION THE COMPANY SAID IT HAS NO CHOICE BUT TO PREPARE FOR A STRIKE THE ST LOUIS COMPANY SAID NO FURTHER TALKS HAVE BEEN SCHEDULED WITH LOCAL 837 OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND AEROSPACE WORKERS UNION AND THE COMPANY PLANS TO CUT ALL PAY AND BENEFITS FOR WORKERS WHO FOLLOW THROUGH ON A PLAN TO STRIKE THURSDAY NIGHT UNION OFFICIALS COULDN'T BE REACHED TO COMMENT BUT THEY HAVE PUBLICLY DENOUNCED A CONTRACT OFFER FROM THE COMPANY THAT WOULD BRING MANY WORKERS LUMPSUM BONUSES EQUAL TO 4 OF THE WORKERS' PAY IN EACH OF THREE YEARS THROUGH 1996 HOWEVER THE COMPANY WOULD DENY THE INCREASES TO 1500 OF THE WORKERS BY RECLASSIFYING THEIR JOBS THOSE WORKERS WOULD GET MODERATE INCREASES IN HOURLY PAY ABOUT 75 OF VOTING UNION MEMBERS REJECTED THE CONTRACT OFFER SUNDAY AND THE UNION SAID A STRIKE WOULD BE SET FOR AFTER MIDNIGHT THURSDAY 9306150099 930615 LUCKY FOR THEM THEY DIDN'T OFFER A RONCO ALLINONE SUEOMATIC BY AMY STEVENS STAFF REPORTER OF THE WALL STREET JOURNAL IT'S JUST WHAT EVERY LAWYER NEEDS AN ATTACHE CASE WHOSE FLIPOPEN BOTTOM RELEASES A CARGO NET COMPLETE WITH WHEELS FOR LUGGING AROUND THOSE EXTRA CASE FILES A CHANGE OF UNDERWEAR AND GOLF CLUBS THE THREEPAGE FEATURE HAD NO TOLLFREE PHONE NUMBER OR ORDER FORM BUT THAT DIDN'T DETER PEOPLE WHOSE PROFESSION IT IS TO DIG UP INFORMATION AND ARGUE FOR WHAT THEY WANT ATTORNEYS DEMANDED TO KNOW HOW THEY COULD OBTAIN THE JAVADERM SKIN PATCH WHICH LEACHES CAFFEINE DIRECTLY INTO THE ARM FOR ALLNIGHTERS AND MORNINGS AFTER AND NO MORE MESSY RINGS ON THE CONFERENCE TABLE FOUR FOR 10 ALSO AVAILABLE IN DECAF OR POWER SHOULDERS AN INFLATABLE DEVICE THAT SWELLS A DIMINUTIVE LITIGATOR TO THE SIZE OF AN NFL LINEMAN 129 INCLUDING TWEED JACKET CHARLES HIGGINS A SOLO PRACTITIONER IN SOLANA BEACH CALIF WROTE FOR FURTHER INFORMATION REGARDING A WAY IN WHICH THESE PRODUCTS CAN BE ORDERED HE SAYS HE WAS ONLY INTERESTED IN THE 99 POCKET PAYPOINT A CALCULATORSIZED MACHINE THAT ACCEPTS AUTOMATICTELLER CARDS TOPPED WITH A HANDKERCHIEF SO IT CAN BE WORN DISCREETLY IN A BREAST POCKET I THOUGHT THE IDEA OF HAVING A CLIENT'S MONEY GO INSTANTLY INTO YOUR ACCOUNT WAS ALMOST TOO GOOD TO BE TRUE HE SAYS IT WAS THE SPOOF USED MAGAZINE STAFFERS AS MODELS AND RESEMBLED THE LL BEAN CATALOG IT WAS TITLED THE LLB CATALOG IN REFERENCE TO A LAW DEGREE BUT THE ADVERTISED ITEMS WERE MERELY PRODUCTS OF THE IMAGINATION OF PHILIPPA GARNER A TRANSSEXUAL BAY AREA ARTIST COMMISSIONED FOR THE PROJECT BY EDITORS WHO WANTED TO JAZZ UP THE MAGAZINE THE 51YEAROLD MS GARNER WHO HASN'T QUITE COMPLETED HER PHYSICAL TRANSFORMATION AND PREFERS BEING CALLED A JUXTAPOSEUR FOR NOW SAYS HER MIXEDGENDER STATUS HELPS HER COME UP WITH IDEAS SUCH AS THE NOTETIE A 16 ITEM THAT'S HALF LEGAL PAD AND HALF CRAVAT I LIKE TO COMBINE THINGS AND GET SOMETHING GREATER THAN THE SUM OF ITS PARTS SHE SAYS 9306150098 930615 WHO'S NEWS CONRAN'S HABITAT CONRAN'S HABITAT NEW YORK THE HOME FURNISHINGS CHAIN NAMED DANIEL H LEVY TO THE NEWLY CREATED POSITION OF CHAIRMAN OVERSEEING ALL NONMERCHANDISING FUNCTIONS INCLUDING FINANCE PERSONNEL STORES OPERATIONS AND DISTRIBUTION MR LEVY AGE 50 HAS HELD SEVERAL POSITIONS AT MONTGOMERY WARD MOST RECENTLY THAT OF VICE PRESIDENT AND CHIEF OPERATING OFFICER HE WILL JOIN MARVIN S TRAUB CONRAN'S CHIEF EXECUTIVE OFFICER AND CHAIRMAN OF THE EXECUTIVE COMMITTEE 9306150097 930615 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION BANCPLUS FINANCIAL CORP AN OFFERING OF 150 MILLION OF SENIOR NOTES DUE 2003 VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP AND JP MORGAN SECURITIES INC PENNCORP FINANCIAL GROUP INC AN OFFERING OF FOUR MILLION COMMON SHARES TJ SYSTEMS CORP AN OFFERING OF 500000 SHARES OF SERIES A CONVERTIBLE PREFERRED STOCK 9306150096 930615 BUSINESS BRIEF MARQUEST MEDICAL PRODUCTS INC MOST DEFAULTED SWISS BONDS ARE TENDERED IN SWAP OFFER MARQUEST MEDICAL PRODUCTS INC ENGLEWOOD COLO SAID THAT ABOUT 90 OF ITS DEFAULTED SWISS BONDS HAVE BEEN TENDERED IN RESPONSE TO AN OFFER TO EXCHANGE THEM FOR A COMBINATION OF MARQUEST SECURITIES AND SCHERER HEALTHCARE INC CONVERTIBLE PREFERRED STOCK THE OFFER ORIGINALLY WAS CONTINGENT UPON 95 OF THE BONDS BEING TENDERED BUT A SPOKESMAN SAID THE COMPANY HAS ELECTED TO PROCEED WITH THE OFFER BONDHOLDERS WILL SHARE 4000 SHARES OF SCHERER CONVERTIBLE PREFERRED STOCK VALUED AT ABOUT 4 MILLION 27 MILLION OF MARQUEST 8 NOTES AND WARRANTS TO BUY 14 MILLION SHARES OF MARQUEST AT 75 CENTS APIECE IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY MARQUEST WAS QUOTED AT 2375 UP 125 CENTS MARQUEST A TROUBLED DISPOSABLE MEDICAL PRODUCTS MAKER DEFAULTED ON ABOUT 127 MILLION OF SWISS BONDS LAST YEAR AFTER THE FOOD AND DRUG ADMINISTRATION SHUT THE COMPANY DOWN FOR THREE MONTHS IN 199192 CHARGING THAT MARQUEST HAD DEVIATED FROM GOOD MANUFACTURING PROCESSES AND QUESTIONED THE SAFETY AND EFFECTIVENESS OF CERTAIN PRODUCTS 9306150095 930615 REVIEW & OUTLOOK EDITORIAL CHALLENGING THE BLACK CAUCUS LAST WEEK REP GARY FRANKS A CONNECTICUT REPUBLICAN SCHEDULED A NEWS CONFERENCE TO ANNOUNCE HIS RESIGNATION FROM THE CONGRESSIONAL BLACK CAUCUS OVER THE WEEKEND HE WAS INUNDATED WITH CALLS FROM CONSTITUENTS WHO URGED HIM TO REMAIN AND FIGHT FOR HIS CONSERVATIVE BELIEFS YESTERDAY HE TOLD REPORTERS HE HAD DECIDED TO STAY IN THE GROUP WHEN MR FRANKS BECAME THE FIRST BLACK HOUSE REPUBLICAN IN 56 YEARS IN 1990 THE BLACK CAUCUS TOLERATED HIM HE SERVED AS A USEFUL CONDUIT TO A REPUBLICAN WHITE HOUSE BUT SINCE BILL CLINTON'S ELECTION MR FRANKS HAS GOTTEN VERY FROSTY TREATMENT HE IS ALMOST ALWAYS THE ODD MAN OUT AT BLACK CAUCUS MEETINGS HE ALONG WITH 54 OF BLACKS FAVORED THE NOMINATION OF CLARENCE THOMAS THE CAUCUS VOTED 201 TO OPPOSE HIM MR FRANKS SPOKE OUT AGAINST THE CLINTON TAX INCREASES AND LANI GUINIER BUT THE CAUCUS ISSUED STATEMENTS IMPLYING THAT THE ENTIRE CAUCUS BACKED BOTH MOVES SO FOR THE CAUCUS MR FRANKS IS A NONPERSON BUT HE IS NOTICED AT BLACK CAUCUS MEETINGS WHEN THE TALK TURNS TO POLITICAL STRATEGY THEN THE GROUP ADJOURNS AND BECOMES THE DEMOCRATIC BLACK CAUCUS AND MR FRANKS IS ASKED TO LEAVE HE HAS TO PAY 10000 EVERY CONGRESS TO BELONG TO THIS GROUP BUT CAN'T ATTEND THE CLUB'S EXCLUSIVE MEETINGS THE CAUCUS'S COMMITMENT TO DIVERSITY GOES ONLY SO FAR THE 40YEAROLD CONGRESSMAN RESENTS ANY SUGGESTION HE IS AN INAUTHENTIC BLACK LEADER GROWING UP MR FRANKS SAW A CROSS BURNED ON HIS LAWN AND HAD TO PULL A DEAD POSSUM FROM HIS FAMILY'S MAIL BOX THE SON OF A MILL WORKER WHO NEVER FINISHED THE SIXTH GRADE HE WON A SCHOLARSHIP TO YALE AND DID WELL IN BUSINESS MR FRANKS IS TROUBLED BY EFFORTS TO DISCREDIT OR IGNORE BLACK CONSERVATIVES BECAUSE THEIR GROWING LEGITIMACY IS CREATING A COMPETING VIEW OF BLACK AMERICA THAT EXPLAINS MUCH OF THE OPPOSITION TO JUSTICE THOMAS BY THE CIVIL RIGHTS ESTABLISHMENT AND WHY BLACKS WHO OPPOSED LANI GUINIER WERE LARGELY IGNORED MR FRANKS THINKS THE BLACK CAUCUS HAS REACHED A TURNING POINT IT HAS NOW TAKEN TO SUGGESTING THAT IT MIGHT REFUSE TO BACK PRESIDENT CLINTON'S BUDGET IF THE SENATE CUTS ENTITLEMENTS INDEED IF MR CLINTON CAVES IN TO ITS DEMANDS THE 39MEMBER CAUCUS COULD BECOME THE BALANCE OF POWER IN THE HOUSE BUT IF THE WHITE HOUSE CONTINUES TO FLOUNDER AND CAN'T COME UP WITH A WORKABLE BUDGET THE CAUCUS WILL BE UNDER INCREASING PRESSURE TO REASSESS ITS POSITION GOP SENATOR MALCOLM WALLOP AND REP CHARLES RANGEL A BLACK CAUCUS MEMBER ARE HOLDING TALKS ABOUT INDEXING CAPITAL GAINS FOR INFLATION IN EXCHANGE FOR FEWER CUTS IN ENTITLEMENTS NO ONE KNOWS HOW MANY OTHER CAUCUS MEMBERS WOULD AGREE TO SUCH A DEAL BUT RECENT EVENTS SHOW ANYTHING IS POSSIBLE IN WASHINGTON THESE DAYS IN THE COMING YEARS THE BLACK CAUCUS MINDSET WILL COME UNDER INCREASING CHALLENGES FROM BLACKS WHO BELIEVE THERE IS AN ALTERNATIVE PATH TO ECONOMIC PROGRESS LEADERS LIKE REP FRANKS AND POLLY WILLIAMS WILL SCORE POINTS WITH A NEW POLITICAL PARADIGM BASED ON EMPOWERMENT AND SELFHELP BUT UNTIL THAT MOMENT OF POLITICAL RECKONING THE BLACK CAUCUS MAY RESEMBLE A CONFORMIST POLITBURO THAT KEEPS FIGHTING THE CLASS STRUGGLE LONG AFTER IT HAS BEEN DISCREDITED ELSEWHERE 9306150094 930615 INTERNATIONAL INDIA'S LIQUOR CONCERNS HOPE TO EXPAND THROUGH ALLIANCES WITH FOREIGN FIRMS BY SUMAN DUBEY STAFF REPORTER OF THE WALL STREET JOURNAL NEW DELHI FOR YEARS INDIAN TIPPLERS HAVE HAD TO SLAKE THEIR THIRSTS WITH THE OBSCURE LIKES OF THUNDERBOLT BEER AND ACTION WHISKEY BUT THEY SOON MAY BE RAISING GLASSES FILLED WITH HIGHERPROFILE POTABLES IN RESPONSE TO MARKETOPENING REFORM INDIAN DRINKS COMPANIES ESPECIALLY WOULDBE BEER MAKERS HAVE BEEN SCOURING THE WORLD FOR PARTNERS ALREADY THREE LEADING GERMAN BREWERIES HAVE SIGNED AGREEMENTS WITH INDIAN COMPANIES TO PRODUCE THEIR BRANDS IN INDIA AND SEVERAL SIMILAR AGREEMENTS ARE IN THE PIPELINE MEANWHILE THE INDIAN GOVERNMENT IS CONSIDERING APPLICATIONS FROM GUINNESS PLC OF BRITAIN AND SEAGRAM CO OF CANADA WHICH WANT TO BLEND AND MARKET IN INDIA A RANGE OF WHISKEYS AND OTHER PRODUCTS IT'S A HUGE COUNTRY THOUGH NOT YET A HUGE BEER MARKET SI PETERSEN EXECUTIVE VICE PRESIDENT AT DANISH BREWER CARLSBERG AS SAID IN A TELEPHONE INTERVIEW THE COMPANY IS HOLDING TALKS WITH SEVERAL POSSIBLE INDIAN PARTNERS OUR BROAD PLAN IS TO SEE THE CARLSBERG BRAND NAME IN INDIA SAYS MR PETERSEN WHO THINKS AN AGREEMENT IS POSSIBLE BY YEAR'S END BEER CONSUMPTION A PRIVATELY COMMISSIONED MARKET SURVEY OF THE INDIAN BEER INDUSTRY WHICH COMPRISES 31 BREWERS FOUND THAT INDIANS DOWNED A TOTAL OF 385 MILLION LITERS OF BEER IN 1991 AND PROBABLY WILL GUZZLE 613 MILLION LITERS A YEAR BY 1995 A LITER IS SLIGHTLY LESS THAN A QUART GROWTH IN ANNUAL CONSUMPTION HAS AVERAGED 19 SINCE 1960 THOSE NUMBERS MAY SEEM LARGE BUT GIVEN INDIA'S POPULATION OF MORE THAN 800 MILLION THE MARKET HOLDS PLENTY OF ROOM FOR GROWTH INDIANS DRANK LESS THAN HALF A LITER OF BEER PER CAPITA IN 1988 COMPARED WITH 161 LITERS FOR GERMANS AND 84 LITERS FOR AMERICANS A SIMILAR STUDY PUTS THE INDIAN MARKET FOR SPIRITS AT 45 MILLION CASES A YEAR INCLUDING 25 MILLION CASES OF WHISKEY THE COUNTRY'S COMPARATIVELY LOW ALCOHOL CONSUMPTION REFLECTS ITS POVERTY BUT ALSO LAWS AND POLICIES THAT HAVE DISCOURAGED DRINKING MANY INDIAN STATES PROHIBITED ALCOHOL CONSUMPTION ALTOGETHER FOR SEVERAL YEARS AND ONE GUJARAT STILL DOES POWERFUL ANTILIQUOR LOBBIES ARE ACTIVE TAXES ON ALCOHOLIC BEVERAGES ARE HIGH DRINKING IN PUBLIC IS RESTRICTED IN MANY PARTS OF INDIA AND ADVERTISING OF ALCOHOLIC BEVERAGES IS PROHIBITED BY LAW ON THE SUPPLY SIDE THE GOVERNMENT HASN'T ALLOWED NEW ALCOHOL INVESTMENTS FOR SEVERAL YEARS AND IT DIDN'T ISSUE ANY NEW BREWING LICENSES BETWEEN 1974 AND 1989 ALL OF WHICH HAS HURT CONSUMERS WHO HAVE HAD TO DIG DEEP IN THEIR POCKETS TO PAY FOR A DECENT DRINK OR RISK THEIR HEALTH BY PATRONIZING INDIA'S THRIVING BOOTLEG INDUSTRY INDEED IN RECENT YEARS SCORES OF POOR PEOPLE HAVE BEEN BLINDED OR KILLED BY LETHAL MOONSHINE MEANWHILE THE LONG FREEZE ON NEW ENTRANTS HAS BEEN A BONANZA FOR A HANDFUL OF ESTABLISHED BREWERS AND DISTILLERS INCLUDING UNITED BREWERIES LTD MOHAN MEAKIN BREWERIES LTD AND SHAW WALLACE LTD BUT CHANGE IS COMING AFTER THE GOVERNMENT LIFTED ITS BAN ON NEW BREWING LICENSES IN 1989 IT RECEIVED SO MANY APPLICATIONS MORE THAN 1200 IN ALL THAT IN 1991 IT STOPPED ACCEPTING THEM THE MINISTRY OF FOOD PROCESSING RECOMMENDED THAT 120 LICENSES BE GRANTED STARTING IN JANUARY 1992 SO FAR 90 HAVE BEEN ISSUED EACH FOR AN ANNUAL BREWING CAPACITY OF FIVE MILLION LITERS WITH LICENSES IN HAND MANY OF THESE WOULDBE BREWERS HAVE FOUND OR ARE LOOKING FOR FOREIGN PARTNERS FOR EXAMPLE WINSOME BREWERIES LTD A RECENTLY FORMED UNIT OF A DELHI TEXTILES COMPANY LAST MONTH ANNOUNCED A JOINT VENTURE WITH FRANKFURTBASED HENNINGERBRAU AG A SUBSIDIARY OF MARZ GROUP ONE OF GERMANY'S LEADING BEER CONCERNS THE VENTURE IS BUILDING A 2138 MILLIONRUPEE 69 MILLION BREWERY NEAR NEW DELHI LOWENBRAU AG OF MUNICH GERMANY HAS AN AGREEMENT WITH HIMNEEL BREWERIES ANOTHER RECENT STARTUP TO SUPPLY TECHNICAL HELP AND ITS BRAND NAME FOR A BREWERY BEING BUILT 125 MILES NORTH OF NEW DELHI THE PARTNERS EXPECT TO HAVE LOWENBRAU IN INDIAN STORES BY EARLY NEXT YEAR MADRAS INDIABASED KOTHARI INDUSTRIAL CORP IS COLLABORATING WITH HOLSTENBRAUEREI AG OF HAMBURG GERMANY TO PRODUCE BEER IN A 120 MILLIONRUPEE BREWERY THE GERMAN COMPANY ALSO IS LICENSING KOTHARI TO USE AT LEAST ONE OF ITS BRANDS AND IS CONSIDERING EQUITY PARTICIPATION AMONG OTHER GERMAN BEER MAKERS BREMENBASED BRAUEREI BECK GMBH MAKER OF BECK'S BEER IS TALKING TO TWO OR THREE POTENTIAL INDIAN PARTNERS 9306150093 930615 POLITICS & POLICY INITIAL CLINTON MEDICAL MALPRACTICE REFORM PLAN PULLED AFTER RESISTANCE BY ENTRENCHED INTERESTS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE BESET BY COMPETING MEDICAL AND TRIAL LAWYER LOBBIES HAS HAD TO RETREAT ON ITS FIRST ATTEMPT AT MALPRACTICE REFORM THE ACTION ILLUSTRATES THE ENTRENCHED NATURE OF THE HEALTH INDUSTRY AND HOW DIFFICULT IT IS TO BALANCE SUPPORT AMONG THE DISPARATE INTERESTS NEEDED TO PASS PRESIDENT CLINTON'S AMBITIOUS HEALTHCARE PLAN HILLARY RODHAM CLINTON'S TASK FORCE HAD HOPED TO WIN VOTES FROM DOCTORS BY SHIFTING LIABILITY FROM THE INDIVIDUAL PHYSICIAN TO THE LARGER HEALTHCARE DELIVERY ORGANIZATIONS EXPECTED TO SPRING UP UNDER THE CLINTON PROGRAM BUT THE SOCALLED ENTERPRISE LIABILITY SCHEME TO BE COMBINED WITH CAPS ON DAMAGES TRIGGERED STRONG OPPOSITION FROM PHYSICIANOWNED LIABILITY INSURANCE COMPANIES WHICH SAW THEIR OWN MARKET THREATENED BY THE CHANGE THESE COMPANIES FORMED AMID THE MALPRACTICE INSURANCE CRISIS OF THE MID70S WERE OFTEN SPONSORED INITIALLY BY STATE MEDICAL SOCIETIES AFFILIATED WITH THE AMERICAN MEDICAL ASSOCIATION MANY HAVE SINCE SPUN OFF INTO INDEPENDENT ENTERPRISES BUT THEIR RELATIONSHIP TO THE AMA HIERARCHY MADE THEM A FORCE IN SHAPING OPPOSITION TO ENTERPRISE LIABILITY WITHIN THE MEDICAL LOBBY LOOKING FOR A TARGET TO PROVE ITS POLITICAL MUSCLE TO ITS MEMBERS THUS DAYS BEFORE MRS CLINTON WENT BEFORE THE AMA SUNDAY THE WHITE HOUSE SIGNALED THAT ENTERPRISE LIABILITY WAS NO LONGER A VIABLE OPTION BEYOND SOME POTENTIAL DEMONSTRATION PROJECTS MRS CLINTON'S SPEECH PROMISED A SERIOUS PROPOSAL ON MALPRACTICE REFORM WOULD STILL BE MADE YET THE PROSPECT NOW OF SIMPLE CAPS ON LEGAL CLAIMS WILL BRING DOWN THE FIRE OF TRIAL LAWYERS WHO HAVE STRONG TIES TO CONGRESS AND WERE INFLUENTIAL IN HER HUSBAND'S PRESIDENTIAL CAMPAIGN IT WOULD BE IN MY OPINION A BETRAYAL OF THE VICTIMS OF MALPRACTICE BY THE CLINTONS SAID ROBERT HABUSH A PAST PRESIDENT OF THE ASSOCIATION OF TRIAL LAWYERS OF AMERICA IT'S NOT NEGOTIABLE ESTIMATES OF THE POTENTIAL SAVINGS FROM MALPRACTICE REFORM RANGE WIDELY DEPENDING ON WHAT COSTS ARE ASSIGNED TO SOCALLED DEFENSIVE MEDICINE PROCEDURES ORDERED BY DOCTORS TO PROTECT THEMSELVES FROM FUTURE LAWSUITS A SINGLE EXPERT WITNESS TESTIFYING BEFORE THE HOUSE WAYS AND MEANS COMMITTEE RECENTLY USED FIVEYEAR FIGURES ESTIMATING SAVINGS AS WIDE AS 75 BILLION TO 762 BILLION BEYOND THOSE FIGURES THE MALPRACTICE ISSUE IS AN EMOTIONAL ONE FOR MANY PHYSICIANS AND HAS LONG BEEN USED BY THE AMA AS A FUNDRAISING DEVICE AMONG ITS MEMBERS BY SHIFTING RESPONSIBILITY TO THE LARGER HEALTHCARE DELIVERY ENTERPRISE MRS CLINTON'S ADVISERS SOUGHT TO ADDRESS SOME OF THOSE CONCERNS POLITICALLY THE PROPOSALS'S SPONSORS HOPED IT WOULD OFFER A NEW MEANS TO LOOK AT THE ISSUE AND BREAK THE STALEMATE THAT HAS FRUSTRATED PAST ATTEMPTS AT REFORM ONE OF ITS MERITS WAS IT OFFERED A CHANCE TO BREAK THE LOGJAM SAID DR ROBERT BERENSON AN ADVISER TO THE TASK FORCE WHEN DOCTORS AND LAWYERS ARGUE OVER TORT REFORM I'M AFRAID THE RESULT WILL BE THE STATUS QUO AND THAT ISN'T GOOD FOR THE PHYSICIAN OR THE PATIENT THOUGH THE AMERICAN COLLEGE OF PHYSICIANS EXPRESSED OPENNESS TO THE APPROACH THE AMA TOOK A HARDER LINE ARGUING THAT DOCTORS WOULD BE RISKING WHAT CONTROL THEY HAVE OVER THE SETTLEMENT OF LAWSUITS AND THE CONDUCT OF THEIR PRACTICES THE SAME ISSUE OF CLINICAL AUTONOMY RUNS THROUGH THE LARGER HEALTHCARE DEBATE INCLUDING SUCH ISSUES AS COST CONTROLS AND THE AMA APPEARS BENT ON STAKING OUT A STRONG POSITION IN ITS POLITICAL COMPETITION NOW WITH THE COLLEGE OF PHYSICIANS OVER WHO REPRESENTS MEDICINE IN WASHINGTON THE PHYSICIAN INSURERS ASSOCIATION OF AMERICA A TRADE GROUP FOR PHYSICIANOWNED INSURANCE COMPANIES IS A WEAK SECOND COUSIN TO THE AMA BUT SERVED TO PROD THE LARGER ORGANIZATION FOUR OF THE EIGHT MEMBERS OF THE AMA'S ADVISORY PANEL ON MALPRACTICE ARE EXECUTIVES WITHIN PHYSICIANOWNED LIABILITY INSURANCE COMPANIES OUR CONCERNS ARE NOT FOR THE SURVIVAL OF COMPANIES BUT FOR THE DOCTORS TO TRY TO GET CONTROL OF THEIR DESTINY SAID LARRY SMARR THE ASSOCIATION'S EXECUTIVE DIRECTOR BUT THE MEDICAL LIABILITY MONITOR AN INDUSTRY NEWSLETTER TOOK A VERY DIFFERENT TONE IN AN EDITION LAST MONTH PROPOSALS IN CLINTON'S HEALTH PLAN WILL CHANGE PERHAPS DESTROY EXISTING MEDICAL LIABILITY MARKETS READ THE HEADLINE OVER AN ARTICLE WARNING FOR SOME COMPANIES ESPECIALLY DOCTOROWNED COMPANIES THE ISSUE COULD BE SURVIVAL THE POTENTIAL INFLUENCE OF THE INSURANCE COMPANIES WITHIN THE AMA CAN BE SEEN IN SUCH STATES AS PENNSYLVANIA THE STATE MEDICAL SOCIETY AND PENNSYLVANIA MEDICAL SOCIETY LIABILITY INSURANCE CO SHARE THE SAME ADDRESS IN HARRISBURG AND THE MORE THAN 7000 DOCTORS RECEIVING COVERAGE ARE REQUIRED TO BE MEMBERS OF THE SOCIETY ALSO PENNSYLVANIA IS A SOCALLED UNIFIED STATE WHERE MEMBERSHIP IN THE SOCIETY FEEDS DIRECTLY INTO THE AMA ITSELF IN THE SAME SPIRIT THE STATE SOCIETY'S POLITICAL ACTION COMMITTEE IN HARRISBURG HELPS TO COLLECT FUNDS FOR THE AMA'S OWN POLITICAL ARM IN CHICAGO IN THE TWOYEAR CYCLE RUNNING THROUGH LAST NOVEMBER'S ELECTION FOR EXAMPLE THE PENNSYLVANIA SOCIETY'S PAC REPORTED RECEIPTS OF 724268 HALF OF WHICH WERE FORWARDED TO THE AMA'S OWN PAC ACCORDING TO FILINGS WITH THE FEDERAL ELECTION COMMISSION THE RECORDS SHOW VIRTUALLY ALL THE FUNDS CAME IN THE FORM OF UNITEMIZED CONTRIBUTIONS UNDER 200 AND IN STATES LIKE ILLINOIS WHERE A SIMILAR RELATIONSHIP EXISTS PAC COLLECTIONS ARE MADE UNDER A CHECKOFF PROCEDURE AS PART OF THE SAME PROCESS BY WHICH MEMBERS PAY DUES STATE AND NATIONAL AMA OFFICIALS PLAY DOWN THE SIGNIFICANCE OF THESE CLOSE TIES AND IN FACT AS THE PHYSICIANOWNED COMPANIES HAVE MATURED MANY NO LONGER REQUIRE MEMBERSHIP IN THE RESPECTIVE STATE SOCIETY BUT THE AVAILABILITY OF LIABILITY COVERAGE IS A BENEFIT OF SOCIETY MEMBERSHIP IN MAJOR STATES AND THIS MARKET IN TURN HELPS TO STRENGTHEN THE AMA AS A LOBBYING ORGANIZATION 9306150092 930615 A BAD SWAP FOR TAXPAYERS BY MARTIN MAYER IN THEIR EAGERNESS TO BOOST THE APPARENT PROFITABILITY OF THE INSTITUTIONS THEY OVERSEE THE WORLD'S BANKING REGULATORS ARE ON THE VERGE OF APPROVING A DANGEROUS NEW ACCOUNTING GIMMICK THE NEW PROPOSAL IS CALLED NETTING AND ITS PURPOSE IS TO ENCOURAGE BANKS TO EXPAND THEIR INVOLVEMENT IN THE EXOTIC DERIVATIVE INSTRUMENTS THAT ALREADY GENERATE A SIZABLE FRACTION OF THE REPORTED PROFITS OF OUR LARGER BANKS THESE FANCY SWAP CONTRACTS AND OPTIONS NOW TOTAL MORE THAN 4 TRILLION IN FACE VALUE WORLDWIDE WITH MUCH MORE TO COME LIKE THE RISKCONTROLLED ARBITRAGE WALL STREET PUSHED ON THE SAVINGS AND LOANS WHEN THE REGULATORS WERE ENCOURAGING THEM TO BE ADVENTUROUS IN DIGGING OUT FROM THEIR TROUBLES THESE TECHNOLOGICALLY INVENTIVE SURE BETS ARE SUPPOSED TO SEPARATE RISK AND REWARD WHAT THEY WILL REALLY DO LIKE THEIR PREDECESSORS IS LET THE BANKS KEEP THE REWARDS WHILE THE GOVERNMENT THE TAXPAYER WINDS UP WITH THE RISKS THE IDEA BEHIND THESE DERIVATIVES IS QUITE SIMPLE MORTGAGE LENDERS FOR EXAMPLE ARE FUNDED MOSTLY OUT OF A MONEY MARKET WHERE INTEREST RATES CHANGE EVERY DAY HOME BUYERS WANT FIXEDRATE MORTGAGES HAVING WRITTEN A MORTGAGE THAT WILL BE PAID OFF ON A FIXED INCOME STREAM A BANK CAN GO OUT AND MAKE A DEAL WITH A LENDER THAT NEEDS A FIXED INCOME STREAM ON ITS LOANS AN INSURANCE COMPANY THAT OFFERS ANNUITIES FOR EXAMPLE AND WILL AGREE TO PAY THE BANK A VARIABLE INTEREST RATE ON THE SAME AMOUNT OF MONEY IF INTEREST RATES GO DOWN THE RECIPIENT OF THE FIXED RATE WINS IF INTEREST RATES GO UP THE RECIPIENT OF THE VARIABLE INTEREST RATE WINS THE BANK HAS HEDGED THE RISK THAT RATES WILL RISE ABOVE THE RATE CHARGED ON THE MORTGAGE AND THE INSURANCE COMPANY HAS ASSUMED THAT RISK THE TERMS OF THE SWAP WILL REFLECT PREVAILING VIEWS ON WHETHER RATES ARE GOING UP OR DOWN FOREIGNEXCHANGE SWAPS PIONEERED BY SALOMON BROTHERS IN 1981 BENEFIT COMPANIES THAT CAN BORROW MORE CHEAPLY IN ONE COUNTRY THAN IN ANOTHER A COMPANY THAT IS BETTER KNOWN IN SWITZERLAND THAN IN THE US CAN SELL SWISSFRANCDENOMINATED PAPER IN ZURICH AND SWAP THE FRANCS FOR DOLLARS WITH A COMPANY THAT CAN EASILY SELL DOLLARDENOMINATED PAPER IN THE US BUT NEEDS SWISS FRANCS TO DO ITS BUSINESS SWAPS CAN COMBINE INTERESTRATE RISK AND EXCHANGERISK AND LOTS OF OTHER RISKS AND THEY CAN AND DO EXTEND IN DAISY CHAINS OF DEALS THE BANKS TRY TO BALANCE THEIR EXPOSURES SWAPPING SAY POUNDS FOR MARKS WITH ONE PARTY AND THEN MARKS FOR POUNDS WITH ANOTHER PARTY TO LOCK IN A SPREAD SWAPS HAVE FASHIONABLE AND UNFASHIONABLE SIDES IF THE WORLD THINKS INTEREST RATES ARE FALLING PEOPLE WON'T WANT TO COMMIT THEMSELVES TO FIXEDRATE PAYMENTS SO THE BANKS PAY THEIR COUNTERPARTIES TO TAKE THE UNFASHIONABLE SIDE BRITISH MUNICIPAL GOVERNMENTS IN THE DAYS OF VERY HIGH RATES AGREED TO PAY FIXED RATES AND RECEIVE VARIABLE RATES BECAUSE THEY GOT PAID CASH UP FRONT TO DO SO THEN DEFAULTED ON THE CONTRACTS BECAUSE THEY COULDN'T AFFORD TO LIVE UP TO THEM LAST SEPTEMBER BANKS THAT HAD SWAPPED THEIR MARKS FOR SOMEBODY ELSE'S POUNDS LOST ALMOST 20 OF THE FACE VALUE OF THE SWAP IN ONE AWFUL DAY NO DOUBT THEY WERE HEDGED AGAINST THIS DISASTER WITH COUNTERVAILING SWAPS THAT ENTITLED THEM TO SOMEBODY ELSE'S MARKS AGAINST THEIR POUNDS BUT IF THE PARTY TO THAT SWAP HAD GONE BUST WHICH WAS BY NO MEANS IMPOSSIBLE THEY'D HAVE HAD TO SWALLOW A CONSIDERABLE LOSS SWISS BANK CORP IS SUING OTHER BANKS AROUND THE WORLD FOR THE 83 MILLION BATH THE SWISS HAD TO TAKE JUST FROM INTEREST PAYMENTS THAT WEREN'T MADE WHEN MACY'S DEFAULTED ON A SWAP CONTRACT AS PART OF ITS BANKRUPTCY PROCEEDINGS MACY'S TOOK A SWAP DEAL NO TRULY SOLVENT COMPANY WOULD HAVE ACCEPTED BECAUSE IT WAS PAID TO DO SO THE WORLD HAS NO SHORTAGE OF STRUGGLING BANKS AND SINKING COMPANIES TO GRAB WHATEVER DEALS THE BANKS OFFER SWAPS ARE PRESENTED TO THE REGULATORS AND INDEED WITHIN THE BUSINESS AS RISKSHIFTING DEVICES THAT WILL MAKE THE FINANCIAL SYSTEM STURDIER AND RISKSHIFTING INSTRUMENTS ALWAYS START LIKE PROGRAM TRADING AND MORTGAGEBACKED SECURITIES AS WAYS TO DIVERSIFY PORTFOLIOS AND HEDGE THE DANGER OF LOSS SHORTTERM HEDGES THE SALE OF BOND FUTURES BY UNDERWRITERS MARKETING NEW CORPORATE BONDS FOR EXAMPLE ARE AN UNDOUBTED SOURCE OF SAFETY BUT IN THE END THE RISKS OF PROGRAM TRADING FALL NOT ON THE RISKAVERSE PENSION FUNDS AND INSURANCE COMPANIES BUT ON THE VOCIFEROUS GAMBLERS IN THE CHICAGO PITS HALF OF WHOM GO BROKE EVERY YEAR THE TRUTH IS THAT OVER TIME RISKSHIFTING DEVICES SHIFT THE RISKS ONTO THE SHOULDERS OF THOSE LEAST ABLE TO BEAR THEM NETTING CONCEALS THESE RISKS BY ALLOWING A BANK OR INVESTMENT BANK TO SUBTRACT THE MARK OR FLOATINGRATE INCOME STREAMS THAT OTHERS OWE IT FROM THE SIMILAR INCOME STREAMS IT OWES OTHERS THE REGULATORS IN EFFECT PUT THEIR RESOURCES BEHIND THESE GAMBLES IN THE NEW PROPOSALS FROM THE BANK FOR INTERNATIONAL SETTLEMENTS WHICH THE FEDERAL RESERVE HAS TENTATIVELY ENDORSED THE REGULATORS HIDE BEHIND A YETTOBEESTABLISHED SWAPS CLEARING HOUSE THAT WOULD TAKE RESPONSIBILITY FOR THE CONTRACTS OF ITS DEFAULTING MEMBERS THE WAY A PAYMENTS CLEARING HOUSE TAKES RESPONSIBILITY FOR THE STEAMER TRUNKS FULL OF CHECKS AND THE ELECTRONIC ORDERS ITS MEMBERS EXCHANGE WITH EACH OTHER BUT SWAPS CLEARING HOUSES DON'T EXIST AND WHAT THEY WOULD HAVE TO SETTLE ARE NOT TRANSACTIONS IN FUNGIBLE MONEY BUT TAILORMADE OBLIGATIONS THAT CAN AND WILL BE PRICED IN DIFFERENT WAYS BY DIFFERENT PARTICIPANTS THE CLEARING HOUSES FOR FUTURES CONTRACTS THAT UNDERGIRD THE CHICAGO MARKETS WORK ONLY BECAUSE THEY IMPOSE MAINTENANCE MARGINS THAT CHANGE EVERY DAY AND SUCH MARGINS WOULD BE IMPOSSIBLE TO CALCULATE IN THIS CONTEXT TO AVOID THE UNRAVELING OF SWAP CONTRACTS WORLDWIDE THE CENTRAL BANKS IN OTHER WORDS THE TAXPAYER WOULD HAVE TO GUARANTEE THAT THE COMMERCIAL BANKS THEY SUPERVISE WILL PAY OFF ON THEIR SWAP CONTRACTS THE PROPOSALS BY THE REGULATORS ARE ESPECIALLY SAD BECAUSE THE MARKET WAS BEGINNING TO SORT OUT THE RISKS PLAYERS IN THE SWAPS GAME WERE BECOMING MORE AND MORE CAUTIOUS ABOUT DOING BUSINESS WITH ANY BUT THE STRONGEST BANKS THREE AMERICAN INVESTMENT HOUSES MERRILL LYNCH GOLDMAN SACHS AND SALOMON BROTHERS HAD SPUN OFF SEPARATE COMPANIES FOR THIS PURPOSE CAPITALIZED TO WHATEVER LEVEL THE RATINGS AGENCIES DEMANDED IF THEY WERE TO RECEIVE THEIR TRIPLEA SALOMON HAD TO PUT UP 175 MILLION TO START ITS SALOMON SWAPCO WITH A PLEDGE OF MORE TO COME AS BUSINESS EXPANDED LED BY CHICAGO'S CONTINENTAL THE BANKS TRIED TO SET UP SIMILAR SUBSIDIARIES BECAUSE THE MARKET DOESN'T AWARD MONEYCENTER BANKS ANYTHING LIKE A TRIPLEA RATING BUT TO DO THAT THEY WOULD HAVE TO TAKE CAPITAL FROM THEIR BANKS THE BANKING REGULATORS HAVE BEEN ARDENT IN HELPING THE BANKS EXAGGERATE THEIR PUBLISHED CAPITAL BY OVERVALUING THEIR REAL LOANS AND INVESTMENTS AND DON'T WANT TO SEE THOSE NUMBERS REDUCED BY THE DEMANDS OF THE SWAPPERS THE COMPTROLLER OF THE CURRENCY DENIED CONTINENTAL THE RIGHT TO GO DOWN THAT PATH AND THE NEW YORK BANKS THAT HAD FILED SUCH REQUESTS WITHDREW THEM SO THE FED HAD TO RIDE TO THE RESCUE REGULATION OF THE DERIVATIVES BUSINESS SHOULD HAVE A SIMPLE GOAL GOVERNMENTS THAT IN EFFECT INSURE BANK LIABILITIES SHOULD DISCOURAGE BANKS FROM PLAYING ZEROSUM GAMES WHERE MOST OF THE PARTICIPANTS ARE OTHER BANKS THE TIME HAS COME FOR THE REGULATORS AND THE CLINTON ADMINISTRATION TO LET THE MARKET PROTECT THE REAL ECONOMY MR MAYER'S NEW BOOK IS NIGHTMARE ON WALL STREET SALOMON BROTHERS AND THE CORRUPTION OF THE MARKETPLACE 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 9306150091 930615 WHO'S NEWS GOLDMAN SAYS BENTON RESIGNS FROM FIRM'S RESEARCH DEPARTMENT NEW YORK DANIEL BENTON A SECURITIES ANALYST WHO COVERS PERSONALCOMPUTER COMPANIES FOR GOLDMAN SACHS & CO RESIGNED MR BENTON WHO JOINED GOLDMAN IN 1984 WILL JOIN THE STAFF OF DAWSON SAMBERG CAPITAL MANAGEMENT A SOUTHPORT CONNBASED FIRM HE WAS NAMED TO INSTITUTIONAL INVESTOR MAGAZINE'S ALLAMERICA RESEARCH TEAM LAST YEAR AS THE TOP PERSONALCOMPUTER ANALYST THE MAGAZINE ALSO NAMED HIM A LEADING ANALYST OF MAINFRAME COMPUTER COMPANIES MR BENTON'S DEPARTURE IS THE THIRD IN TWO WEEKS FROM GOLDMAN'S RESEARCH DEPARTMENT OIL SERVICES ANALYST CHARLES DICKINSON AND MIDRANGE COMPUTER ANALYST JOHN LEVINSON ALSO LEFT THE INVESTMENT BANKING FIRM MR LEVINSON WILL JOIN THE NEW YORK INVESTMENT FIRM OF LYNCH & MAYER NEXT MONTH IN AN INTERNAL MEMO GOLDMAN SAID MR DICKINSON LEFT TO PURSUE OTHER CAREER OPPORTUNITIES THIS LOOKS LIKE A NUMBER OF DEPARTURES IN A SHORT TIME SAID STEVE EINHORN CODIRECTOR OF GLOBAL RESEARCH FOR GOLDMAN WE HAVE ALSO ADDED A NUMBER OF HIGHLY RECOGNIZED SENIOR PEOPLE TO THE DEPARTMENT AS WELL AND I THINK THAT PLACES THESE DEPARTURES IN A PROPER PERSPECTIVE MR EINHORN SAID THE DEPARTURES WEREN'T UNEXPECTED AND REPRESENTED CHANGING CAREER INTERESTS ON THE PART OF THE THREE ANALYSTS THESE PEOPLE ARE NOT LEAVING BECAUSE THEY ARE UNHAPPY WITH US HE SAID ADDING THAT GOLDMAN HAS NOT YET DETERMINED THEIR REPLACEMENTS MR BENTON DECLINED TO COMMENT JUDY MACK TREASURER AND SECRETARY FOR DAWSON SAMBERG SAID MR BENTON WOULD BEGIN WORKING IN THE FIRM'S NEW YORK OFFICE NEXT MONDAY 9306150090 930615 FORD PREDICTS LOSS IN EUROPE ON SALES SLUMP BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH FORD MOTOR CO WILL POST LOSSES IN EUROPE THIS YEAR AND POSSIBLY NEXT YEAR IF THE ECONOMY THERE DOESN'T IMPROVE A TOP COMPANY OFFICIAL SAID WAYNE W BOOKER FORD'S EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL SALES PREDICTED THAT 1993 INDUSTRYWIDE VEHICLE SALES IN EUROPE WILL DROP 17 BELOW 1992 LEVELS WE COULD BE IN THE MIDST OF ONE OF THE WORST RECESSIONS SINCE WORLD WAR II MR BOOKER TOLD EUROPEAN REPORTERS VISITING FORD HEADQUARTERS YESTERDAY MR BOOKER'S GRIM REMARKS CAME AS SOME ANALYSTS CUT THEIR EARNINGS ESTIMATES FOR FORD FORD STOCK FELL 1875 TO 51875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY UNTIL RECENTLY INVESTORS WERE HOPEFUL THAT AN ECONOMIC REBOUND IN THE UNITED KINGDOM WOULD LIFT FORD'S EUROPEAN RESULTS SAID ANALYST WENDY NEEDHAM OF SMITH BARNEY HARRIS UPHAM & CO MS NEEDHAM LOWERED HER 1993 EARNINGS ESTIMATE FOR FORD YESTERDAY TO 17 BILLION FROM 23 BILLION FORD NOW EXPECTS INDUSTRY SALES IN EUROPE OF 125 MILLION CARS AND LIGHT TRUCKS ITS DIMMEST FORECAST THIS YEAR AND ONE THAT MEANS FORD WILL OPERATE AT A LOSS IN EUROPE FOR THE YEAR TWO MONTHS AGO FORD WAS FORECASTING INDUSTRY SALES IN EUROPE OF 131 MILLION BY LAST MONTH FORD HAD CUT ITS FORECAST TO 127 MILLION VEHICLES AND SAID IT WAS INCREASINGLY UNLIKELY TO BREAK EVEN IN EUROPE IF THE EUROPEAN ECONOMY TURNS AROUND FORD COULD SEE A PROFIT THERE NEXT YEAR MR BOOKER SAID IF IT DOESN'T 1994 WOULD BE THE FOURTH YEAR IN A ROW THAT FORD POSTED A LOSS ON ITS EUROPEAN OPERATIONS DISCOUNTING CHANGES IN ACCOUNTING METHODS FORD POSTED LOSSES OF MORE THAN 1 BILLION A YEAR IN EUROPE IN 1991 AND 1992 FORD OF EUROPE WHICH PREVIOUSLY ANNOUNCED PLANS TO TRIM 10000 JOBS THIS YEAR MAY MAKE FURTHER CUTS IN ITS WORK FORCE IF THE ECONOMY THERE CONTINUES TO WORSEN MR BOOKER SAID MR BOOKER ALSO CRITICIZED THE EUROPEAN COMMUNITY FOR NEGOTIATING WHAT HE SAID WERE OVERLY GENEROUS IMPORT RESTRICTIONS WITH JAPAN AND CALLED ON THE EC TO REOPEN NEGOTIATIONS WITH JAPAN IN LIGHT OF EUROPE'S FALTERING ECONOMY SALES AT FORD'S JAGUAR UNIT WERE UP 12 IN THE FIRST FIVE MONTHS OF 1993 OVER THE YEARAGO PERIOD BUT JAGUAR WILL NONETHELESS POST A LOSS FOR THIS YEAR AND WILL AT BEST BREAK EVEN IN 1994 MR BOOKER SAID THE BRIGHT SPOT IN FORD'S EUROPEAN OPERATIONS IS THE NEW MONDEO SINCE THE SEDAN WAS LAUNCHED IN MARCH FORD HAS RECEIVED ORDERS FOR 200000 MONDEOS MORE THAN HALF ITS EXPECTED SALES FOR THE YEAR 9306150089 930615 REVIEW & OUTLOOK EDITORIAL LURCHING AND STAGGERING AS WE WENT TO PRESS LAST NIGHT JUDGE RUTH BADER GINSBURG HAD BEEN NOMINATED BY PRESIDENT CLINTON TO THE SUPREME COURT WE'RE GUARDED IN OUR ASSESSMENT BECAUSE THIS IS THE YOGI BERRA PRESIDENCY WITH BILL CLINTON IT'S NEVER OVER UNTIL IT'S OVER EVEN THEN YOU NEVER KNOW ON THE EVIDENCE OF HIS PERFORMANCE YESTERDAY WE GUESS MR CLINTON HIMSELF HAS TIRED OF THIS REPUTATION ASKED BY THE FIRST QUESTIONER AT A NEWS CONFERENCE ABOUT HIS RECENT ODYSSEY OF DECISIONS FROM GUINIER TO BREYER TO GINSBURG THE PRESIDENT WALKED OUT FOR SYMPATHY MR CLINTON COULD CALL DISGRUNTLED ATLANTA BRAVES INFIELDER TERRY PENDLETON WHO NOT LONG AGO ABRUPTLY WALKED AWAY FROM HIS POSITION AT THIRD BASE AND DISAPPEARED FROM THE GAME HE'S BACK AND WE SUSPECT MR CLINTON WILL BE TOO WE HAVEN'T BEEN ABLE TO GIVE THE PRESIDENT MUCH SUPPORT FOR THE LIKES OF LANI GUINIER OR SHELDON HACKNEY BUT IF INDEED JUDGE GINSBURG IS ABSOLUTELY POSITIVELY GOING TO THE SUPREME COURT THAT'S FINE WITH US WE'RE HAPPY TO SUPPORT THIS MODERATE NOMINATION IF ONLY TO STOP THE BLEEDING ANYONE WHO'S WON THE ADMIRATION OF TORT LIABILITY AND JUNKSCIENCE FOE PETER HUBER SEE ALONGSIDE CAN'T BE ALL BAD WE OURSELVES LOOK FORWARD TO THE OPPORTUNITY TO EXAMINE JUDGE GINSBURG'S WORK AND MAKE SOME JUDGMENT ABOUT THE SUBSTANCE OF HER THINKING STILL THE QUESTION THAT SENT AN ANGRY MR CLINTON STORMING OUT OF HIS OWN NEWS CONFERENCE DOES LINGER AFTER THE LONG DRAMA WHAT WENT WRONG FOR JUDGE BREYER WHO WAS TRUCKED ALL THE WAY TO WASHINGTON FROM BOSTON WITH CRACKED RIBS FOR A WHITE HOUSE INTERVIEW AND WHAT HAVE WE LEARNED ABOUT BILL CLINTON ONE REASON BEING OFFERED TO EXPLAIN THE STANDDOWN FROM JUDGE BREYER IS THAT HIS CURRENT LEGAL TEMPERAMENT WAS SIMPLY TOO POTENTIALLY CONSERVATIVE FOR THE TASTE OF THE CLINTONS AND THEIR DINNER CIRCLE THE SUPPOSED PROBLEM WITH SOCIAL SECURITY TAXES FOR AN 81YEAROLD HOUSEWARMER WAS DRAGGED OUT FOR COVER WE ARE PREPARED TO ENTERTAIN COUNTERARGUMENTS THAT NO SUCH WORRIES DETERMINED THE PRESIDENT'S CHOICE AND THAT HE ABSOLUTELY POSITIVELY WANTS TO MOVE TOWARD THE CENTER THE LARGER QUESTION IS DOES IT MATTER IS IT POSSIBLE THAT WHAT WE ARE REALLY SEEING IN ALL THIS INDECISION IS THE INTELLECTUAL SELFPARALYSIS OF BOTH BILL CLINTON AND MODERN LIBERALISM ALL THE POLITICAL PLAYBOOKS SAY THAT BILL CLINTON SHOULD BE PICKING A FIGHT WITH A FORMIDABLE POLITICAL OPPONENT TO ACHIEVE A WIN AND ESTABLISH SOME CREDIBILITY AND RESPECT BUT THIS ISN'T HAPPENING AND THE REASON WE SUSPECT GOES BEYOND MR CLINTON'S PERSONALITY LIBERALS MAY HAVE FINALLY REACHED THE POINT WHERE THEY ARE BEHOLDEN TO SO MANY SHIBBOLETHS AND SACRED COWS THAT THEY ARE VIRTUALLY INCAPABLE OF GOVERNING THE CLINTONS' DIVERSITY REQUIREMENT FOR TOP GOVERNMENT JOBS MEANS THE ADMINISTRATION HAS BARELY FORMED A GOVERNMENT BUT DIVERSITY IS ONLY ONE ALTAR IN THE MODERN LIBERAL TEMPLE WOMEN MINORITIES HISPANICS THE DISABLED GAYS LESBIANS ANIMALS TREES RIVERS WETLANDS THE OZONE MULTICULTURALISM AIDS THE HOMELESS DATE RAPE RECYCLING OFFENSIVE SPEECH INNUMERABLE ENTITLEMENT PROGRAMS TAX FAIRNESS INCENSE BURNS IN FRONT OF THEM ALL BY NOW LIBERAL POLITICAL LEADERS HAVE SPENT SO MANY YEARS GIVING GROUND TO AGGRIEVED PARTICULARIST GROUPS THAT THEY'RE READY TO CUT AND RUN AT ANY RESISTANCE ON SATURDAY PRESS ACCOUNTS SUGGESTED THAT MR CLINTON'S FIRST MEETING WITH JUDGE BREYER HADN'T GONE ALL THAT WELL MEANWHILE NOTING THAT LIBERAL HIGH PRIEST RALPH NADER WAS SAYING THE PRESIDENT COULD DO BETTER THAN THIS THE IRONY AT THIS JUNCTURE IS THAT EVEN IN POWER THE LIBERALS CAN'T GET WHAT THEY WANT THE CLINTONS COULD HAVE NOMINATED A LARRY TRIBE OR PETER EDELMAN TO THE SUPREME COURT AND GONE TO THE MATTRESSES TO GET THEM CONFIRMED BUT LURCHING TO THE LEFT SHREDDED HIS POLL RATINGS SO HE'S NOW STAGGERING TO THE CENTER THUS BILL AND HILLARY FIND THEMSELVES BACKING OFF THE MODERATE STEPHEN BREYER TO NOMINATE THE SEMIMODERATE RUTH BADER GINSBURG EFFECTIVE GOVERNING REQUIRES DECISIONS AND IN POLITICS DECIDING MEANS OFFENDING SOMEONE MR CLINTON'S RELUCTANCE TO AROUSE ANY OF HIS CONSTITUENCIES IS HIGHLY VISIBLE BUT HE'S HARDLY ALONE IN THIS RESPECT CITIES SUCH AS NEW YORK AND LOS ANGELES HAVE SUFFERED BECAUSE OF THE SAME FEAR OF POLITICAL OFFENSE AS HAS SHELDON HACKNEY'S PENN CAMPUS A FAILURE OF NERVE REPEATED AT COUNTLESS OTHER UNIVERSITIES LIBERALS CREATED THIS POLITICAL LABYRINTH AND WE DOUBT FOR MOST OF THEM THERE IS ANY WAY OUT OF IT BESIDES TENDING THE WINDMILLS GENERATES AN INCOME FOR A LOT OF THEM IT CAN BE VERY DIFFICULT THOUGH FOR PEOPLE LIVING IN A CITY STATE OR COUNTRY BEING LED BY SUCH NEUTRALIZED POLITICIANS WE SAID THE ADMINISTRATION SHOULD HAVE FOUGHT FOR ZOE BAIRD RATHER THAN ADD ONE MORE ITEM TO THE LIST THAT CAN BE USED AS AN EXCUSE FOR DEFEATING A NOMINEE SOMEONE FINDS THREATENING NO GO WE SUPPORTED GIVING LANI GUINIER HER TIME BEFORE THE JUDICIARY COMMITTEE PRECISELY SO WE ALL COULD DISCUSS SUBSTANCE RATHER THAN PROCEDURE AS THE PRESIDENT TESTILY DEMANDED YESTERDAY NO GO WE'VE WATCHED THE WHITE HOUSE BACK OFF BUDGET FIGHTS WITH CONGRESSIONAL BARONS OF EVERY POLITICAL STRIPE GO IN AND OUT OF BOSNIA AND RIDE OFF IN ALL DIRECTIONS ON HEALTH CARE REFORM BILL CLINTON IS SHUTTLING DAILY EVEN HOURLY BETWEEN LIBERALISM AND THE CENTER IT'S A SHORT FRUSTRATING TRIP MAYBE WALKING OUT OF NEWS CONFERENCES MAKES MR CLINTON FEEL BETTER BUT HE SHOULD REMEMBER THAT HE VOLUNTEERED FOR THE JOB 9306150088 930615 LETTERS TO THE EDITOR GIRL SCOUTS' BIGTIME PROBLEMS THANK YOU FOR YOUR MAY 13 PAGEONE ARTICLE THIN REWARDS SPRAWLING BUREAUCRACY EATS UP MOST PROFITS OF GIRL SCOUT COOKIES IT HELPED ME TO MAKE A DECISION TO STAY UNINVOLVED IN GIRL SCOUTING ALTHOUGH THE GIRL SCOUTS PROVIDED ME WITH OPPORTUNITIES FOR FUN AND PERSONAL GROWTH OVER THE 15 YEARS OF MY INVOLVEMENT FROM BROWNIE TO LEADER THE MOST IMPORTANT LESSONS WERE THOSE OF HOW TO FIGHT TO DEBATE TO CHALLENGE AND MOSTLY TO EVADE THE MONOLITH OF GIRL SCOUT ADMINISTRATION APPARENTLY THINGS HAVE NOT CHANGED AFTER 20 YEARS IN PROFESSIONAL AND MANAGERIAL POSITIONS IN FORPROFIT FIRMS SINCE MY LAST INVOLVEMENT WITH GIRL SCOUTING I FELT THAT BECOMING A LEADER AGAIN WOULD BE A WAY TO CONTRIBUTE TO GIRLS MUCH IN THE SAME WAY AS DID TAKE YOUR DAUGHTER TO WORK DAY YOUR ARTICLE POINTS OUT THE FLAW IN MY THINKING AND BRINGS BACK MANY BAD MEMORIES I THINK THAT NOW I COULD TOLERATE EVEN LESS THE AUTHORITARIAN ATTITUDES OF A BUREAUCRACY THAT RELIES TOO HEAVILY ON THE LABORS OF CHILDREN AND THE SACRIFICES OF THEIR UNPAID LEADERS IT SEEMS THAT ONCE AGAIN OUR CULTURE IS WILLING TO SACRIFICE A TREMENDOUS GOOD TO CORRECT A PERCEPTION OF BAD THE IMPLICATION THAT THE GIRL SCOUTS USE CHILD LABOR FOR SOME KIND OF CORPORATE PROFIT STRATEGY IS STRETCHING THE LIMITS OF CREDIBILITY MY WIFE DAUGHTER AND I ARE ALL ACTIVE IN GIRL SCOUTS AND AT LEAST IN OUR AREA THE OPPORTUNITIES AND PROGRAMS OFFERED TO GIRLS ARE KEPT REASONABLE BY THE COOKIE SALES THE IDEA IS TO TEACH KIDS THAT THEY CAN ACCOMPLISH SOMETHING ON THEIR OWN WITHOUT GOING TO MOM AND DAD THE TROOPS ALSO HAVE DUES THESE DUES PAY FOR CRAFT MATERIALS OUTINGS AND EVERYTHING ELSE THE GIRLS DO ONCE AGAIN THE TRULY VALUABLE LESSON IS ONE OF TAKING RESPONSIBILITY FOR ONESELF AND ONE'S ACTIONS EVEN IN A FAIRLY AFFLUENT AREA SUCH AS ORANGE COUNTY CALIF THERE ARE GIRLS WHO CAN'T AFFORD EVEN 1 A WEEK FOR DUES SO SOME OF THE TAINTED COOKIE MONEY FROM THE ABUSIVE COUNCIL IS USED TO HELP THAT CHILD HOW DESPICABLE YOUR ARTICLE SADDENED ME HAVING BEEN A GIRL SCOUT VOLUNTEER FOR DECADES I WAS READY TO JUMP IN AND DEFEND THE COUNCILS HOW CAN THEY PROVIDE PROGRAM SERVICES AND SUPPORT TO TROOPS WITHOUT ADMINISTRATIVE EXPENSES INSURANCE OFFICE SUPPLIES PRINTING TELEPHONE POSTAGE EQUIPMENT REPAIR AND REPLACEMENT UPKEEP ON CAMP PROPERTIES SALARY FOR A FEW PROFESSIONALS HAVE TO BE PAID FOR BUT BY THE TIME I HAD FINISHED THE ARTICLE I COULD SEE THAT GIRL SCOUTING HAS CHANGED SINCE I WAS ACTIVE AND THE NATIONAL ORGANIZATION CAN TAKE RESPONSIBILITY FOR MUCH OF IT IN 1955 WHEN I VOLUNTEERED TO LEAD A TROOP OUR COUNCIL HAD ABOUT 5000 GIRL MEMBERS THE BOARD OF DIRECTORS WERE MOSTLY TROOP LEADERS OUR EXECUTIVE DIRECTOR AND OFFICE MANAGER WERE SALARIED DECISIONS ACCORDING TO GIRL SCOUT POLICY WERE MADE BY VOLUNTEERS THE TROOPS WERE REPRESENTED BY VOLUNTEER DISTRICT CHAIRPERSONS BY THE LATE '60S THE NATIONAL ORGANIZATION BEGAN PUSHING SMALL COUNCILS TO UNITE TO BECOME MORE EFFECTIVE THIS WAS UNDERSTANDABLE AS SOME COUNCILS CONSISTED OF ONLY A FEW TROOPS THE MOVEMENT TOWARD BIG COUNCILS ESCALATED AND OUR COUNCIL WAS CONSIDERED SMALL I WAS APPOINTED TO A COMMITTEE TO STUDY MERGERS THOSE OF US WHO WERE OPPOSED WERE ACCUSED OF ELITISM OUR COUNCIL HAD VOLUNTEERS AND ASSETS THAT WERE NEEDED TO HELP LESS FORTUNATE GIRLS NEEDLESS TO SAY THE GIRL SCOUT WILLINGNESS TO HELP OTHERS PREVAILED AND LOS ANGELES BECAME ONE ENORMOUS COUNCIL WITH THE MERGER OUR TROOP LEADERS LOST COMMUNICATION WITH THE BOARD WHO WANTS TO TRAVEL 30 MILES TO MEETINGS OUR OFFICE WAS CLOSED WE LOST OUR EFFICIENT EXECUTIVE THE SERVICE CENTER WE WERE ASSIGNED TO WASN'T OPEN EVERY DAY BY 1970 I HAD BEEN A LEADER OF TROOPS AT EVERY LEVEL A BOARD MEMBER COOKIE CHAIRPERSON TRAINER CAMP DIRECTOR ETC AFTER THE MERGER I CONTINUED TO TRAIN VOLUNTEERS TO BECOME TROOP LEADERS I THOUGHT MY SERVICES WOULD BE NEEDED IN THE NEW COUNCIL BUT DISTANCE TO MEETINGS AND THE DIFFICULTY OF OBTAINING SUPPLIES FINALLY CAUSED ME TO WRITE A LETTER OF RESIGNATION IT WAS NEVER ACKNOWLEDGED AFTER READING THE ARTICLE I REALIZED MY EXPERIENCE WAS NOT UNIQUE AS THE NUMBER OF GIRLS SERVED AND THE SQUARE MILES OF JURISDICTION INCREASED SERVICE DIMINISHED MORE PROFESSIONALS WERE NEEDED TO FILL JOBS LEFT BY VOLUNTEERS AND TROOP LEADERS LOST THEIR ROLE IN DECISIONMAKING IF VOLUNTEERS UNDERSTAND THE NEEDS OF THEIR COUNCIL SEE WHERE FUNDS COME FROM AND HOW THEY ARE USED THEY ARE WILLING TO HELP RAISE MONEY IF NECESSARY IF THE COUNCIL IS OVERBURDENED WITH STAFF SALARIES IT SHOULD BE APPARENT AND CORRECTION MADE BIGGER ISN'T ALWAYS BETTER JULIETTE GORDON LOW NEVER INTENDED THE GIRL SCOUTS TO BE MANAGED BY PROFESSIONALS IT IS TIME FOR VOLUNTEERS TO EXERT THEIR AUTHORITY AND WIN BACK THEIR ORGANIZATION 9306150085 930615 MEDIA CABLETV SYSTEMS BROADCASTERS TO PLAY HIGHSTAKES GAME THAT PUBLIC MAY LOSE BY ELIZABETH JENSEN AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK SOME 1100 TELEVISION STATIONS AND 11000 CABLE SYSTEMS ARE ABOUT TO START A GAME OF POKER THAT COULD LAST FOR OH SEVERAL THOUSAND HANDS THE STAKES NOTHING LESS THAN THE BALANCE OF POWER IN THE TELEVISION BUSINESS DRIVING THIS MATCHUP OF GAMBLE AND BLUFF BETWEEN BROADCASTERS AND CABLE ARE SOME ARCANE PROVISIONS OF THE NEW CABLE LAW WHEN THE GAME ENDS VIEWERS COULD SEE SOME STARTLING CHANGES ON THEIR TV SETS MAJOR BROADCAST STATIONS COULD DISAPPEAR FROM THEIR CABLE SYSTEMS TINY UHF OUTLETS COULD GAIN NEW SLOTS AND SOME POPULAR CABLE CHANNELS COULD GET BUMPED OFF BASIC SERVICE WORSE YET CONSUMERS MAY WELL END UP FOOTING THE BILL AFTER THE FIRST FROM THE NEW FACEOFF BETWEEN CABLE AND BROADCAST EVEN THOUGH THE NEW CABLE LAW WAS INTENDED TO REDUCE CABLE BILLS AND CAP FUTURE RATE INCREASES AND THOUSANDS OF VIEWERS MAY BE LEFT CONFUSED AND ANGRY OVER THE LOSS OF FAVORITE CHANNELS THE CABLE ACT OF 1992 WILL LET STATIONS FOR THE FIRST TIME DEMAND PAYMENT FROM THE LOCAL CABLE SYSTEMS THAT CARRY THEIR SIGNAL RAISING THE STAKES THE NEW RULES LET A CABLE OPERATOR SUMMARILY DROP STATIONS FROM ITS LINEUP AND THEREBY REDUCE THE STATIONS' AUDIENCE IF THE TWO SIDES CAN'T AGREE ON A FAIR PRICE THREE OF THE BIGGEST STATION GROUPS IN THE COUNTRY THOSE OWNED BY THE NBC ABC AND CBS NETWORKS SAY THEY WILL EXTRACT PAYMENTS OF SOME KIND FROM CABLE OPERATORS OTHERS ARE EXPECTED TO FOLLOW SUIT BUT MOST OF THE NATION'S 10 LARGEST CABLE OPERATORS WHICH COVER MORE THAN HALF OF ALL CABLE HOMES HAVE VOWED THEY WON'T PAY MOST OTHER BIG OPERATORS MAY ALSO REFUSE UNTIL NOW AFTER ALL CABLE WAS FREE TO RETRANSMIT THE STATIONS' PROGRAMMING WITHOUT PAYING A CENT THE BIG QUESTION IS WHETHER CABLE WILL REALLY DELIVER ON ITS THREAT TO DUMP NETWORK STATIONS NBC ABC AND CBS STATIONS TYPICALLY GET 56 OF PRIMETIME VIEWERS IN CABLE HOMES AND INDEPENDENT STATIONS AND PUBLIC TV OUTLETS PUSH THE BROADCAST SHARE TO 76 OF VIEWERS SOME POLLS MOREOVER SHOW THAT MORE THAN 60 OF SUBSCRIBERS WOULD CANCEL THEIR CABLE HOOKUPS IF THE BIG THREE WERE DROPPED THE FIRST HAND OF THIS HIGHSTAKES GAME BEGINS ON THURSDAY THAT'S THE DEADLINE FOR THE NATION'S 1152 COMMERCIAL TV STATIONS TO DECLARE WHETHER THEY WILL INDEED DEMAND PAYMENTS FROM CABLE STATIONS BY INVOKING THE CLAUSE KNOWN AS RETRANSMISSION CONSENT STATIONS THAT DON'T WANT TO GAMBLE MUST FORGO THE CABLE FEES IN FAVOR OF THE OPTION KNOWN AS MUST CARRY WHICH REQUIRES THE CABLE SYSTEMS TO KEEP THEM IN PLACE UNSCATHED AND TO RESERVE UP TO A THIRD OF THEIR CHANNEL SPACE FOR COMMERCIAL BROADCASTERS IN THEIR MARKET THE MUST CARRY RULE IS ALREADY WREAKING HAVOC ON THE TELEVISION LANDSCAPE TINY UHF STATIONS BEGAN ELBOWING THEIR WAY ONTO CROWDED CABLE SYSTEMS EARLIER THIS MONTH WHEN THE FIRST STAGE OF THE NEW LAW TOOK EFFECT IN DOVER NJ FANS OF BASEBALL'S NEW YORK METS WERE OUT OF LUCK IF THEY SUBSCRIBED TO SAMMONS COMMUNICATIONS' CABLE SYSTEM A SPORTSCHANNEL CABLE NETWORK WHICH CARRIES METS GAMES IN THAT MARKET WAS DROPPED TO MAKE ROOM FOR A LOCAL CHRISTIAN STATION AND A SPANISHLANGUAGE STATION BOTH OF WHICH INVOKED MUST CARRY TO WIN A CHANNEL SLOT YET THE SAMMONS CABLE SYSTEM ALREADY CARRIES ANOTHER SPANISH CHANNEL AND HISPANICS ACCOUNT FOR LESS THAN 10 OF THE MARKET A VIACOM INC CABLE SYSTEM IN MARIN COUNTY CALIF SAYS IT WOULD HAVE TO DROP ARTS CHANNEL BRAVO AND CSPAN 2 CUT THE MAIN CSPAN'S TIME IN HALF AND SHED A POPULAR PUBLIC STATION TO MAKE ROOM FOR THREE LESSER STATIONS THAT HAVE INSISTED ON MUST CARRY THE STATIONS INCLUDE A SMALL PUBLIC TV OUTLET AN HISPANIC SERVICE AND AN ASIAN SERVICE YET THE CABLE SYSTEM ALREADY CARRIES TWO OTHER HISPANIC AND ASIAN STATIONS AND THOSE TWO ETHNIC GROUPS EACH ACCOUNT FOR LESS THAN 5 OF THE MARIN COUNTY CITIZENRY THE CABLE OPERATOR IS FIGHTING THE SWITCH AND HAS WON A TEMPORARY RESTRAINING ORDER ANTICIPATING THE MUST CARRY FALLOUT SOME CABLE CHANNELS HAVE BEGUN WARNING BIG ADVERTISERS THAT THEY WILL PROBABLY LOSE SOME PART OF THEIR AUDIENCE BUT ADVERTISERS ARE STILL UNNERVED HOW DO I BUY CABLE NETWORKS WITHOUT KNOWING WHAT THEIR COVERAGE IS GOING TO BE ASKS JON MANDEL SENIOR VICE PRESIDENT AT GREY ADVERTISING THE OUTLOOK FOR BROADCAST ADVERTISING IS JUST AS UNCLEAR IF TIME WARNER INC'S CABLE SYSTEMS DROP THE CBS STATION IN NEW YORK CBS'S AUDIENCE WOULD BE SEVERELY REDUCED IN A MARKET THAT COMPRISES 72 OF ALL TV HOUSEHOLDS IN THE US WE DON'T LIKE TO BUY ONE THING IN JULY AND GET SOMETHING ELSE IN OCTOBER WARNS BETSY FRANK SENIOR VICE PRESIDENT AT SAATCHI & SAATCHI ADVERTISING ONCE TV STATIONS AND CABLE SYSTEMS BEGIN DICKERING OVER THE PROGRAMMING FEES ENTAILED BY RETRANSMISSION CONSENT THE CHANGES MAY BE EVEN MORE STARTLING CABLE AND BROADCAST EXECUTIVES ALIKE TALK IN TERMS OF CHAOS THIS IS A TRAIN WRECK YOU CAN SEE A LONG WAY OFF SAYS AMOS HOSTETTER CHAIRMAN OF CONTINENTAL CABLEVISION INC THE THIRDLARGEST CABLE OPERATOR KWWL THE WATERLOO IOWA NBC AFFILIATE IS CARRIED ON 140 SEPARATE CABLE SYSTEMS AND GENERAL MANAGER JIM WATERBURY MUST BARGAIN WITH EACH FROM THE SMALLEST WITH 20 SUBSCRIBERS TO THE LARGEST WITH 40000 OVER WHETHER HE WILL CHARGE THEM FOR PROGRAMMING OR INVOKE HIS MUST CARRY RIGHTS IF HE BETS RIGHT KWWL COULD GET EXTRA CASH IF HE OVERDOES IT KWWL COULD LOSE A PASSEL OF CABLE VIEWERS IT'S MENTALLY TAXING HE SAYS BY PUTTING A VALUE ON BROADCAST PROGRAMMING THE NEW LAW IN THEORY LETS BROADCASTERS REGAIN SOME OF THE GROUND THEY HAVE LOST TO CABLE IN RECENT YEARS CABLE SYSTEMS HAVE ALWAYS PAID FEES FOR CABLE CHANNELS NOW PAYING PERHOUSEHOLD FEES OF FIVE CENTS TO 30 CENTS A MONTH TO CARRY SUCH SERVICES AS MTV AND ESPN THEY HAD ALWAYS USED LOCAL TV STATIONS' FARE FREE OF CHARGE YET A BROADCASTERCOMMISSIONED STUDY SAYS CONSUMERS PUT THE VALUE OF THE BROADCAST SIDE AT MORE THAN 14 A MONTH COMPARED WITH ABOUT 13 FOR DOZENS OF CABLE CHANNELS COMBINED SOME BROADCASTERS ARE LOOKING AT NONCASH FORMS OF PAYMENT SUCH AS FREE AD TIME ON CABLE CHANNELS CAPITAL CITIES/ABC INC GENERAL ELECTRIC CO'S NBC AND NEWS CORP'S FOX INC ALL PLAN NEW CABLE CHANNELS AND SEE CHANNEL SLOTS AS ANOTHER FORM OF COMPENSATION FOX HAS REACHED A DEAL WITH TELECOMMUNICATIONS INC TO FORGO FEES IN EXCHANGE FOR SPACE FOR A FOX CABLE NETWORK TCI HAS AGREED TO PAY FOX 25 CENTS PER HOME ANYWAY FOR THE NEW CHANNEL A VERY HIGH FEE FOR A NEW SERVICE BUT OTHER STATION GROUPS ARE BALKING AT THAT APPROACH THE NEW RULES WERE ADOPTED TO STRENGTHEN LOCAL BROADCASTERS NOT SO NETWORKS COULD END UP WITH THEIR OWN CHANNELS SAYS WILLIAM RYAN PRESIDENT OF WASHINGTON POST CO'S FOURSTATION GROUP AMONG THE BIG THREE NETWORKS CBS SEEMS MOST INTENT ON SEEKING CASH FROM CABLE WE WANT VALUE SAYS JAY KRIEGEL A CBS INC SENIOR VICE PRESIDENT AND AS BEST WE CAN DETERMINE THE CABLE INDUSTRY VALUES PROGRAMMING BY PAYING CASH RICHARD COTTON GENERAL COUNSEL FOR NBC SAYS BROADCASTERS SIMPLY DON'T BELIEVE CABLE WILL DROP LOCAL TV STATIONS AND CUT OFF ITS NOSE TO SPITE ITS FACE BUT CABLE OPERATORS INSIST THEY WILL GLENN JONES CHAIRMAN OF JONES INTERCABLE WHICH HAS 15 MILLION SUBSCRIBERS THREATENS TO BEGIN INSTALLING A/B SWITCHES SO VIEWERS CAN TOGGLE BETWEEN CABLE AND OVERTHEAIR RECEPTION ONCE HE PUSHES LOCAL BROADCASTERS OUT IT'S GOING TO GET REAL INTENSE MR JONES SAYS IT'S GOING TO GET EVEN MORE INTENSE WHEN SOME STATIONS GO OFF THE AIR BUT AN OFFICIAL WITH THE FEDERAL COMMUNICATIONS COMMISSION IS SKEPTICAL ABOUT ALL THE PUBLIC POSTURING IT'S A LITTLE LIKE SUMO WRESTLING HE SAYS THE WRESTLERS CIRCLE EACH OTHER AROUND THE RING FOREVER THEY HUFF AND THEY PUFF THEY THROW POWDER BUT WHEN THEY LOCK ARMS THE MATCH LASTS FOUR SECONDS 9306150084 930615 HEARD ON THE STREET THREE VETERAN PORTFOLIO MANAGERS SHARE THEIR WISDOM BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL TODAY MORE PEOPLE ARE PORTFOLIO MANAGERS THAN EVER BEFORE MANY OF THE NEW MANAGERS ARE IN THEIR 30S OR EVEN THEIR 20S SMART PEOPLE USUALLY BUT WITHOUT MUCH DEPTH OF MARKET EXPERIENCE BY CONTRAST A FEW MARKET VETERANS HAVE THE PERSPECTIVE THAT COMES FROM WATCHING BULL AND BEAR MARKETS OVER A STRETCH OF DECADES LET'S DROP IN FOR A VISIT WITH THREE OF THEM PHILIP L CARRET 96 YEARS OLD HEADS CARRET & CO IN NEW YORK WHICH MANAGES MORE THAN 500 MILLION IW TUBBY BURNHAM II 84 IS THE FOUNDER OF BURNHAM SECURITIES AND BURNHAM FUND DAVID HUNTER 64 RUNS HUNTER ASSOCIATES A MONEYMANAGEMENT AND BROKERAGE FIRM IN PITTSBURGH TO MR CARRET AND MR BURNHAM THE CRASH OF 1929 IS AS VIVID A MEMORY AS THE CRASH OF 1987 MR HUNTER IS A RELATIVE YOUNGSTER BUT HE HAS NEARLY FOUR DECADES IN THE INVESTMENT BUSINESS AND HAS BEEN CALLED THE WILL ROGERS OF FINANCE HERE'S HOW THESE OLDTIMERS LOOK AT TODAY'S STOCK MARKET STOCKS LOOK HIGH SAYS MR CARRET BUT HE'S NOT LOSING ANY SLEEP HE HAS LONG SINCE QUIT TRYING TO GUESS WHETHER THE OVERALL MARKET IS HEADED UP OR DOWN INSTEAD HE STICKS WITH A TIMETESTED BLEND OF ABOUT 70 STOCKS 25 BONDS AND 5 CASH SURE THE MARKET WILL COLLAPSE FROM TIME TO TIME HE SAYS BUT THAT WILL NOT BE FATAL HE FOCUSES HIS ENERGY ON FINDING INDIVIDUAL STOCKS THAT ARE WORTH HOLDING FOR SEVERAL YEARS WITH INDIGNATION HE HOLDS UP A BROKERAGEHOUSE REPORT TOUTING A STOCK AT 5 THE ANALYST SAYS IT HAS THE POTENTIAL TO REACH 850 THESE PEOPLE ARE CRAZY MR CARRET EXCLAIMS YOU SHOULDN'T BUY AT 5 UNLESS YOU THINK IT'S WORTH AT LEAST 15 ONE AREA HE THINKS HAS BIG POTENTIAL IS REAL ESTATE WHICH HAS BEEN IN THE DOGHOUSE FOR A LONG TIME HE OWNS SHARES IN PROPERTY CAPITAL TRUST A REAL ESTATE INVESTMENT TRUST WITH PROPERTIES NATIONWIDE AND HE IS LOOKING FOR OTHER REALESTATE INVESTMENTS BANK STOCKS ARE A FAVORITE AREA FOR MR CARRET THE COUNTRY HAS PERHAPS 12000 BANKS HE SAYS DURING THE NEXT 10 TO 15 YEARS HE BELIEVES THE INDUSTRY COULD CONSOLIDATE DOWN TO 500 BANKS OR SO AND THERE PROBABLY WILL BE SPECULATIVE PROFITS TO BE HAD CURRENTLY HE OWNS SHARES IN NORWEST BASED IN MINNEAPOLIS NATIONAL CITY CLEVELAND AND PROGRESSIVE BANK PAWLING NY HE ALSO LIKES ENERGY STOCKS INCLUDING EXXON FOR ITS GROWING RESERVES UNOCAL FOR ITS IMPROVED MANAGEMENT AND MAGMA POWER BECAUSE GEOTHERMAL ENERGY ISN'T WELL UNDERSTOOD BY INVESTORS WHAT WON'T HE BUY REDHOT CASINO STOCKS FOR ONE I HAVE CERTAIN PREJUDICES HE SAYS MOST PEOPLE LIKE TO GAMBLE I THINK IT'S TOTALLY UNPRODUCTIVE HE WON'T BUY TOBACCO OR LIQUOR STOCKS EITHER BUT MR CARRET IS INTERESTED IN NEW TECHNOLOGIES HE SUBSCRIBES TO A BIOTECHNOLOGY NEWSLETTER I UNDERSTAND ABOUT 10 OF IT HE SAYS IN HIS PERSONAL PORTFOLIO HE OWNS SOME CALGENE A BIOTECHNOLOGY COMPANY WORKING ON AMONG OTHER THINGS A BETTER TOMATO A VETERAN BOTTOMFISHER HE RECENTLY BOUGHT MERCK AT 38 FIGURING IT HAD FALLEN ENOUGH HE BOUGHT IBM AT 50 ON THE SAME THEORY AND BECAUSE HE THINKS IT COULD PROFITABLY BE SPLIT INTO ABOUT FOUR COMPANIES MERCK'S NOW AT 39 AND IBM IS AT 52 GOVERNMENT IN MR CARRET'S VIEW IS OFTEN THE ENEMY OF INVESTORS SO FAR HE SAYS THE CLINTON ADMINISTRATION IS ONE OF THE WORST WE HAVE EVER HAD A TAX INCREASE HE SAYS WILL PROBABLY SLOW THE ECONOMY ENOUGH TO THROW THE COUNTRY BACK INTO A RECESSION MR BURNHAM KNOWN ON WALL STREET BY HIS CHILDHOOD NICKNAME OF TUBBY IS MILDLY BEARISH HE HAS 56 OF HIS PORTFOLIO IN STOCKS COMPARED WITH THE USUAL 60 BEFORE THE 1987 CRASH HE HAD CUT BACK TO LESS THAN 40 IN STOCKS BUT TODAY PORTFOLIO INSURANCE A HEDGING STRATEGY THAT EXAGGERATED THE 1987 DOWNTURN ISN'T AROUND AND LIMITS HAVE BEEN IMPOSED ON COMPUTERIZED PROGRAM TRADING LESSENING THE RISK OF A CRASH THE CHIEF RISK NOW AS HE SEES IT IS A PANIC AMONG MUTUALFUND INVESTORS THE FIRST TEST OF THAT POSSIBILITY WILL COME WHENEVER THE FEDERAL RESERVE RAISES INTEREST RATES HE SAYS ONE OF HIS FAVORITE STOCKS IS CHRYSLER WITH ITS PLETHORA OF SUCCESSFUL NEW MODELS IF THIS WERE 1929 HE SAYS CHRYSLER WOULD SELL AT 600 LIKE MR CARRET MR BURNHAM FAVORS OIL STOCKS HIS HOLDINGS INCLUDE EXXON TEXACO MOBIL AND PHILLIPS PETROLEUM NOBODY'S PAYING MUCH ATTENTION HE SAYS BUT THE SAUDIS EARLIER THIS MONTH SAID THEY THINK THE PRICE OF OIL IS TOO LOW I'VE LEARNED THAT WHEN THEY SAY SOMETHING THINGS GENERALLY HAPPEN HE BELIEVES SAUDI ARABIA HELD BACK ON OILPRICE INCREASES DURING THE BUSH ADMINISTRATION BUT FEELS LESS LOYALTY TO THE CLINTON ADMINISTRATION SPEAKING OF MR CLINTON MR BURNHAM SAYS I CAN'T THINK OF ANY PRESIDENT WHO GOT OFF TO SUCH A BAD START HE HOPES MR CLINTON CAN RECOVER HIS STRIDE BUT DOUBTS IT WILL HAPPEN I THINK WE'RE FINDING OURSELVES WITH A VERY WEAK PRESIDENT WHEN NEW INVESTORS COME TO HIS FIRM MR HUNTER SAYS HE MAKES THEM TAKE A PLEDGE IF A CLIENT DECIDES TO KEEP SAY 60 OF ASSETS IN STOCKS THEN WHEN THE MARKET GOES TO POT THEY'RE GOING TO PUT MORE IN BY THE SAME TOKEN MR HUNTER BELIEVES INVESTORS SHOULD TAKE SOME PROFITS WHEN RISING STOCK PRICES MAKE THE STOCKS BULGE BEYOND THEIR ALLOCATED PORTION OF A PORTFOLIO THIS DISCIPLINE HE SAYS HELPS PEOPLE BUY LOW AND SELL HIGH IT ALSO REMOVES THE TEMPTATION TO GUESS WHICH WAY THE MARKET IS HEADED WHICH HE SEES AS FRUITLESS MR HUNTER SCORNS CYCLICAL STOCKS SUCH AS GENERAL MOTORS AND CATERPILLAR EVEN THOUGH THEY'VE REWARDED INVESTORS RECENTLY THEY'VE SPENT A LOT OF TIME OVER THE PAST DECADE NOT MAKING THE MONEY THAT ANALYSTS PREDICT THEY WILL MAKE IN 1994 WE'VE GONE THROUGH A PERIOD THE PAST SIX MONTHS OR SO IN WHICH ALL THE REALLY GOOD GROWTH STOCKS HAVE COME DOWN HE SAYS HE ESPECIALLY LIKES SMALL GROWTH STOCKS SUCH AS MEDRAD WHICH MAKES MEDICAL EQUIPMENT AND LEGENT A SOFTWARE FIRM HE'S FOND OF RESPIRONICS A MAKER OF RESPIRATORY THERAPY PRODUCTS BUT WOULDN'T BUY AT THE CURRENT PRICE AMONG THE BIGGER STOCKS HE OWNS ARE ENHANCE FINANCIAL SERVICES WHICH REINSURES MUNICIPALBOND INSURERS AND DRUG STOCKS INCLUDING SCHERINGPLOUGH BRISTOLMYERS SQUIBB AND MARION MERRELL DOW THE CLINTON ADMINISTRATION'S HEALTHCARE PLAN WON'T BE PERMANENTLY DEBILITATING TO DRUG COMPANIES HE PREDICTS IN HIS VIEW THE ADMINISTRATION SHOULD CUT HEALTHCARE COSTS BY REDUCING MALPRACTICE SUITS DRUGS COMPANIES ONLY ACCOUNT FOR SOMETHING LIKE 7 OF HEALTHCARE COSTS AND THEY DO COME UP WITH SOLUTIONS TO MEDICAL PROBLEMS HE SAYS LAWYERS DON'T DO THAT MUCH EASTMAN KODAK JUMPED 2 5/8 TO 53 3/4 AMID SPECULATION THAT THE COMPANY WILL USE TODAY'S NEWS CONFERENCE TO ANNOUNCE PLANS TO SELL OR SPIN OFF PART OR ALL OF A MAJOR BUSINESS THE ODDS SEEM TO FAVOR KODAK SELLING A STAKE IN OR SPINNING OFF EASTMAN CHEMICAL EFFECTIVELY CUTTING THE ROCHESTER NY PARENT COMPANY'S DEBT AND IN THE CASE OF A SPINOFF REWARDING ANTSY SHAREHOLDERS WITH A PURE PLAY CHEMICAL STOCK KODAK IS TELLING INVESTORS THAT TODAY'S ANNOUNCEMENT IS JUST PART OF CHAIRMAN KAY WHITMORE'S PROMISED RESTRUCTURING ONE WALL STREET VETERAN SAYS ON A SCALE OF ONE TO 10 KODAK TOLD HIM TO EXPECT SOMETHING NORTH OF FIVE A FEW ANALYSTS EVEN SPECULATE THAT THE COPIER BUSINESS COULD BE INVOLVED BUT KODAK WATCHERS RULE OUT A DIVESTITURE OF COPIERS A CLOSE FIT WITH KODAK'S CORE IMAGING AND FILM BUSINESS MOREOVER THEY SAY THE COPIER BUSINESS IS CLOUDED BY POOR EARNINGS AND AN ANTITRUST LAWSUIT AND THE LIKELIHOOD THAT PHARMACEUTICALS ARE INVOLVED DOESN'T SEEM TO MAKE SENSE EITHER GIVEN THE COMPANY'S ALLIANCE WITH FRANCE'S ELF SANOFI 9306150083 930615 WORLD MARKETS TOKYO STOCKS FALL AS YEN SURGES PRICES CLIMB IN LONDON EXTEND WINNING STRING IN FRANKFURT A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS FELL BROADLY IN EXTREMELY THIN TRADING MONDAY AS THE YEN'S SURGE TO YET ANOTHER RECORD HIGH AGAINST THE US DOLLAR SCARED AWAY INVESTORS LONDON SHARES CLIMBED IN HOPES OF EASED BRITISH MONETARY POLICY THOUGH THE GAINS WERE VIEWED AS VULNERABLE IN FRANKFURT PRICES SCORED THEIR EIGHTH ADVANCE IN A ROW WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10842 UP 041 REFLECTING INCREASES IN MARKETS IN THE AMERICAS AND EUROPE AND IN THE ASIA/PACIFIC REGION SOFTWARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11978 UP 289 OR 25 WITH LOTUS DEVELOPMENT OF THE US POSTING A 56 GAIN IN ITS LOCAL CURRENCY FOREST PRODUCTS STOCKS TRAILED AT 13280 DOWN 344 OR 25 WITH WILLAMETTE INDUSTRIES OF THE US SLIDING 54 IN LOCAL CURRENCY ON TUESDAY IN TOKYO THE NIKKEI INDEX EASED 4277 POINTS TO CLOSE THE MORNING SESSION AT 2035458 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 250 MILLION SHARES DOWN SHARPLY FROM 6457 MILLION SHARES FRIDAY WHEN TURNOVER WAS PUSHED UP BY TRADING TIED TO THE SPECIAL QUOTATION TO SETTLE JUNE FUTURES CONTRACT PRICES MONDAY'S VOLUME WAS THE LOWEST SINCE THE MARKET BEGAN TO SURGE IN EARLY MARCH ON EXPECTATIONS OF AN UPTURN IN THE ECONOMY LOSERS SWAMPED GAINERS 737276 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 878 POINTS FRIDAY FELL 158 TO 165946 NERVOUSNESS ABOUT THE YEN POSED A HURDLE FOR BUYING OF STOCKS WHILE SELLING ALSO WAS DISCOURAGED BY EXPECTATIONS THAT PUBLIC PENSION FUNDS WILL STEP IN TO LIMIT ANY BIG MARKET DECLINES MANY INVESTORS STOOD PAT AS THE DOLLAR FELL TO A HISTORIC LOW OF 10521 YEN MONDAY AFTERNOON IN TOKYO AS THE YEN SWEPT HIGHER MANY EXPORTERS' STOCKS TUMBLED THOUGH MANY EMERGED RELATIVELY UNSCATHED A RISING YEN CUTS INTO THE VALUE OF EXPORTERS' OVERSEAS EARNINGS BANKING SHARES GAINED ON SPECULATION THAT THE BANK OF JAPAN WILL HAVE TO TRIM MONEY MARKET RATES SOON TO OFFSET THE DEFLATIONARY EFFECT OF THE YEN'S SURGE A MOVE THAT COULD HELP STOCK PRICES ELECTRIC POWER COMPANIES ALSO ROSE THE CURRENCY'S RELENTLESS ADVANCE HAS DESTROYED THE SCENARIO OF A REBOUND IN CORPORATE PROFITS FOR THE CURRENT FISCAL YEAR AN EXPECTATION THAT HAD FUELED THE MARKET'S EXPLOSIVE ADVANCE SINCE MARCH IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 237 POINTS TO 28855 THE FT 30STOCK INDEX ROSE 189 POINTS TO 22629 VOLUME WAS 5001 MILLION SHARES COMPARED WITH 5289 MILLION SHARES IN THE PREVIOUS SESSION THE BANK OF FRANCE TRIGGERED THE LONDON RISE WHEN THE CENTRAL BANK LOWERED TWO KEY INTEREST RATES YESTERDAY BASED ON THE FRENCH FRANC'S STRENGTH AGAINST THE GERMAN MARK STERLING HAS FARED WELL AGAINST THE GERMAN CURRENCY TOO AND LONDON INVESTORS HOPED BRITAIN WOULD USE THE POUND'S STRENGTH TO LOWER BRITISH BASE LENDING RATES SOON A REDUCTION IN BASE RATES FROM THE CURRENT 6 WOULD CUT INDUSTRY'S BORROWING COSTS AND INCREASE THE APPEAL OF STOCKS IN RELATION TO FIXEDINCOME INVESTMENTS THE LONDON MARKET COULD GET A LOOK AT BRITAIN'S INTENTIONS ON MONETARY POLICY TODAY IN A SPEECH BY THE NEW CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE BUT IT COULD BE BUFFETED THIS WEEK WHEN BRITISH ECONOMIC DATA ARE TO BE RELEASED INCLUDING MAY UNEMPLOYMENT MONEY SUPPLY RETAIL PRICE INFLATION AND RETAIL SALES AND APRIL INDUSTRIAL OUTPUT IN FRANKFURT THE DAX 30STOCK INDEX ROSE 11 POINTS TO 169198 AMID LOW VOLUME TRADING WAS INFLUENCED MAINLY BY TECHNICAL FACTORS SOME BUYERS BEGAN HANGING BACK WHICH COULD LIMIT PRICE INCREASES WHILE STOCKS' DIRECTION WAS PULLED BY MIXED FEELINGS ABOUT WHETHER GERMANY'S CENTRAL BANK WILL CUT INTEREST RATES THIS WEEK PARIS PRICES WEAKENED THOUGH THEY MANAGED TO REBOUND FROM THE SESSION'S LOW IN ANEMIC TRADING AS MANY INVESTORS IGNORED THE FRENCH CENTRAL BANK'S CUTS IN INTEREST RATES BUT AMSTERDAM SHARES RALLIED BROADLY ON BARGAINHUNTING FOLLOWING RECENT STEEP PRICE DECLINES PRICES ALSO WERE AIDED BY A SLIGHTLY FIRMER DOLLAR AND STOCKS' GAINS IN LONDON AND NEW YORK IN MILAN EQUITIES FELL IN NERVOUS TRADING AS BUYING INTEREST IN THE TELECOMMUNICATIONS SECTOR WAS OFFSET BY GLOOM ABOUT A RESTRUCTURING AND THE UNCERTAIN FUTURE OF THE AGROINDUSTRIAL AND CHEMICAL COMPANY FERRUZZI FINANZIARIA ITALY'S SECONDLARGEST PRIVATESECTOR INDUSTRIAL CONCERN AND ITS MONTEDISON SUBSIDIARY STOCKHOLM PRICES FELL THOUGH THE SLIDE NOTABLY FOR EXPORTERS WAS SLOWED BY SELECTIVE GAINS AMONG BLUE CHIPS SUCH AS BANKING AND INSURANCE ISSUES ZURICH SHARES FELL ON PROFITTAKING ACROSS THE BOARD SINGAPORE STOCKS ENDED LOWER THE DECLINES ACCELERATING AFTER THE MARKET'S MAIN BAROMETER FELL THROUGH A PERCEIVED SUPPORT LEVEL TAIPEI SHARES FELL IN THIN TRADING AMID BEARISH SENTIMENT BECAUSE OF POLITICAL UNCERTAINTIES CAUSED BY RISING FACTIONAL FIGHTING IN TAIWAN'S RULING PARTY BEFORE A MIDAUGUST PARTY CONGRESS SEOUL PRICES FELL FOR A FOURTH CONSECUTIVE SESSION EXTENDING THE CORRECTION AFTER A BULL RUN AMONG CORPORATE DEVELOPMENTS IN TOKYO NIPPONDENSO FELL 20 YEN OR 11 TO 1720 YEN 1620 THE AUTO PARTS SUPPLIER IHE TOYOTA MOTOR GROUP LOWERED ITS CURRENTYEAR PROJECTION FOR UNCONSOLIDATED PRETAX PROFIT TO 53 BILLION YEN 4993 MILLION DOWN 20 FROM THE PREVIOUS FORECAST AND FOR SALES TO 132 TRILLION YEN OFF 29 FROM THE PREVIOUS ESTIMATE OF 136 TRILLION YEN NIPPONDENSO CITED ECONOMIC WEAKNESS THAT HAS HAMPERED RECOVERY FROM THE AUTO INDUSTRY'S SLUMP AND THE YEN'S SURGE AGAINST THE DOLLAR SUMITOMO METAL MINING GAVE UP 20 OR 2 TO 1000 CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SANK 48 TO 951 BILLION YEN FROM A YEAR EARLIER FOR THE CURRENT FISCAL YEAR SUMITOMO PREDICTED A DECLINE OF 58 IN PRETAX PROFIT CITING SLUGGISH WORLD METAL PRICES AND THE YEN'S APPRECIATION 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 9306150082 930615 VW'S LOPEZ SAYS FIRM WANTS TO BUILD EXPERIMENTAL PLANT IN NORTHERN SPAIN BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL HANOVER GERMANY VOLKSWAGEN AG'S EMBATTLED PURCHASING AND PRODUCTION CHIEF J IGNACIO LOPEZ DE ARRIORTUA ANNOUNCED THAT VW WANTS TO BUILD AN EXPERIMENTAL FACTORY IN NORTHERN SPAIN BUT MR LOPEZ SAID THE CONCEPT FOR THAT SUPEREFFICIENT PLANT IS DIFFERENT FROM THE ONE HE DEVELOPED WHILE AT GENERAL MOTORS CORP THOUGH HE REFUSED TO ELABORATE THE FACILITY NEVERTHELESS COULD OPEN ANOTHER BATTLEFRONT WITH HIS OLD EMPLOYER GM SENT VW A LETTER OVER THE WEEKEND WARNING IT MIGHT TAKE LEGAL ACTION AGAINST THE GERMAN COMPANY IF IT BUILDS A PLANT SIMILAR TO THE ONE DESIGNED BY MR LOPEZ WHILE HE WAS ON GM'S PAYROLL VW SAYS THE NEW FACILITY WOULD NOT BE A FULLFLEDGED MANUFACTURING PLANT BUT RATHER A LABORATORY FOR PRODUCTION TECHNOLOGY WHERE THE COMPANY COULD EXPERIMENT WITH LOWCOST ASSEMBLY METHODS IN HIS FIRST NEWS CONFERENCE SINCE HE JUMPED TO VW IN MARCH MR LOPEZ DENIED ACCUSATIONS NOW BEING INVESTIGATED BY A GERMAN PROSECUTOR THAT HE ABSCONDED WITH HORDES OF GM DOCUMENTS GM SUSPECTS MR LOPEZ WITH THE HELP OF SEVEN COWORKERS WHO FOLLOWED HIM TO VW MAY HAVE CARTED OFF THOUSANDS OF PAGES OF SENSITIVE MATERIAL INCLUDING COPIES OF GM'S PRODUCT PLANS FOR EUROPE FOR THE NEXT 10 YEARS WE DON'T HAVE ANYTHING AND WE PUT THIS IN WRITING SAID MR LOPEZ WHO SHOWED REPORTERS TWO LETTERS HE SENT TO GM IN APRIL IN ONE HE VOWED TO STICK BY A CONFIDENTIALITY PLEDGE TO HIS FORMER EMPLOYER IN THE OTHER HE SAID HE HAD NO DOCUMENTS GM ARGUES THE LETTERS ARE TOO VAGUELY WORDED TO FULLY ANSWER ITS CONCERNS MANY EXPECTED MR LOPEZ TO USE NEWS CONFERENCES IN HANOVER AND MADRID TO LASH OUT AT GM BUT INSTEAD HE DWELT ON HIS EFFORTS TO REVAMP VW AND SOME OF HIS PET THEORIES ABOUT THE AUTO INDUSTRY MR LOPEZ ALSO SHED MORE LIGHT ON THE EVENTS LEADING UP TO HIS DEPARTURE FROM GM HE SAID HIS FIRST CONTACT WITH VW CHAIRMAN FERDINAND PIECH OCCURRED LAST DECEMBER AND WAS ARRANGED BY A SUPPLIER WHO HE REFUSED TO IDENTIFY AND WHO ACTED AS A MIDDLEMAN PREVIOUSLY MR PIECH HAS SAID MR LOPEZ INITIATED THE CONTACT MR LOPEZ SAID YESTERDAY THAT THIS FIRST MEETING WAS A CONVERSATION BETWEEN TWO PROFESSIONALS NOTHING MORE THE CONTACTS CONTINUED IN FEBRUARY HE SAID WHEN MR PIECH OFFERED HIM A JOB MR LOPEZ CONTENDED THE BREAKING POINT WITH GM CAME ON MARCH 8 WHEN HE TRAVELED TO RUESSELSHEIM THE HEADQUARTERS OF ADAM OPEL AG GM'S GERMAN SUBSIDIARY TO ATTEND A TWODAY STRATEGY MEETING ONLY THEN HE SAID DID HE LEARN THE SPANISH PLANT WAS BEING DROPPED IN FAVOR OF NEW INVESTMENTS IN EASTERN EUROPE ON MARCH 8 I SUFFERED THE BIGGEST DECEPTION OF MY LIFE SAID MR LOPEZ IF I HADN'T SUFFERED THAT I'D BE WORKING AT GM RIGHT NOW MR LOPEZ SAID HE DRAFTED HIS RESIGNATION LETTER ON MARCH 9 EVEN THOUGH HE ATTENDED THE DAY'S STRATEGY SESSIONS HE GAVE THE LETTER TO GM'S PRESIDENT JOHN F SMITH ON MARCH 10 MR LOPEZ SAID THE FACILITY HE WANTS TO BUILD FOR VW REPRESENTS A NEW CONCEPT SEPARATE FROM THE ONE HE DEVELOPED FOR GM BUT HE REFUSED TO DESCRIBE THE DIFFERENCES SAYING THAT WOULD AID THE COMPANY'S COMPETITORS HOWEVER SOME EXPERTS QUESTION WHETHER MR LOPEZ'S PLANS FOR VW WILL AMOUNT TO ANYTHING MORE THAN A MODEST IMPROVEMENT ON EXISTING JAPANESESTYLE METHODS OF PRODUCTION TOYOTA IS THE EXAMPLE TO BEAT IS HE DOING SOMETHING THAT IS QUANTITATIVELY DIFFERENT FROM WHAT I HAVE SEEN THE CASE IS STILL TO BE MADE SAID JAMES WOMACK A LEAN PRODUCTION EXPERT WHO IS COAUTHOR OF A 1990 BOOK ON AUTOMOBILE PRODUCTION MR LOPEZ MEANWHILE SAID HE WAS SURPRISED THAT GM WAS THREATENING LEGAL ACTION OVER THE ISSUE THIS IS A FREE CONTINENT HE SAID WHERE ANYONE CAN PRODUCE WHAT HE WANTS GM OFFICIALS CONTACTED IN ZURICH AND DETROIT WOULD NOT COMMENT ON MR LOPEZ'S STATEMENTS OR ON THE LEGAL ISSUES SURROUNDING THE EXPERIMENTAL FACTORY BUT SOME EXPERTS SUGGESTED THAT A CLAIM BY GM MIGHT HAVE MERIT IF A SENIOR EMPLOYEE DEVELOPS A CONCEPT RELATED TO THE BUSINESS OF THE COMPANY THERE'S A GOOD ARGUMENT THAT IT'S THE PROPERTY OF THE COMPANY SAID MICHAEL EPSTEIN A PARTNER IN CHARGE OF THE TECHNOLOGY AND INTELLECTUAL PROPERTY GROUP AT THE NEW YORK LAW FIRM WEIL GOTSHAL & MANGES ONE OF MR EPSTEIN'S LAW PARTNERS IS IRA M MILLSTEIN WHO ADVISES GM'S NONEMPLOYEE DIRECTORS HOWEVER MR EPSTEIN HIMSELF ISN'T INVOLVED WITH THE LOPEZ CASE HE SAID ONE UNUSUAL ASPECT OF THE VW PROJECT IS HOW IT WILL BE FINANCED MR LOPEZ SAID VW'S SPANISH SUBSIDIARY SEAT IS NEGOTIATING WITH A SPANISH CONSORTIUM THAT WANTS TO FORGE A JOINTVENTURE TO BUILD THE FACILITY ACCORDING TO REPORTS IN THE SPANISH PRESS WHICH MR LOPEZ SAID WERE CORRECT THE CONSORTIUM INCLUDES SPAIN'S BIGGEST COMMERCIAL BANK BANCO CENTRAL HISPANO THE INDUSTRIAL HOLDING COMPANY CORP IBV SAVINGS BANK BILBAO BIZKAIA AUTO PARTS GROUP IBCCANDEMAC CORP SPAIN'S SECONDBIGGEST BANK BANCO BILBAO VIZCAYA AND THE SPANISH ELECTRIC UTILITY IBERDROLA SA THE ONLY TIME MR LOPEZ SEEMED FLUSTERED WAS WHEN HE WAS ASKED ABOUT HIS OLD FRIEND GM'S PRESIDENT MR SMITH JACK SMITH IS A GREAT MAN HE'S AN EXTRAORDINARILY HONEST PERSON SAID MR LOPEZ AND I FEEL I AM HIS FRIEND CARLTA VITZTHUM IN MADRID CONTRIBUTED TO THIS ARTICLE 9306150081 930615 LETTERS TO THE EDITOR CAPITALISM'S MORAL CODE YOU MISSED THE POINT WHEN YOU PUBLISHED SCOTT HOLLERAN'S MAY 26 LETTER UNDER THE HEADLINE CAPITALISM ISN'T MORAL BUT IT IS REASONABLE THE BIBLE DOES NOT HAVE A MONOPOLY ON MORALITY IN FACT EVERY PHILOSOPHY BY DEFINITION PROFESSES MORALITY THE PHILOSOPHY OF CAPITALISM ALSO CONTAINS A SET OF VALUES BY WHICH MANY PEOPLE CHOOSE TO LIVE IE A MORAL CODE EVEN THOUGH MR HOLLERAN CITES AYN RAND'S STUNNINGLY ARTICULATE DEFENSE OF CAPITALISM ON PURELY MORAL GROUNDS IN HER NOVEL ATLAS SHRUGGED IT IS IRONIC THAT YOUR HEADLINE DISPLAYS AN EDITORIAL PHILOSOPHY THAT TRIVIALIZES THE BEST MORAL ARGUMENT FOR THE VERY EXISTENCE OF YOUR PUBLICATION 9306150080 930615 BUSINESS BRIEF ALLIED CAPITAL CORP INVESTMENT FIRM SEES PROFIT FALLING IN QUARTER 6 MONTHS ALLIED CAPITAL CORP SAID IT EXPECTS TO REPORT LOWER SECONDQUARTER AND SIXMONTH EARNINGS LARGELY BECAUSE OF A LACK OF SALES OF LOANS GUARANTEED BY THE SMALL BUSINESS ADMINISTRATION THE WASHINGTON SMALLBUSINESS INVESTMENT COMPANY HAD EARNINGS OF 13 CENTS A SHARE FOR THE 1992 SECOND QUARTER AND 307 CENTS A SHARE FOR THE SIX MONTHS THE COMPANY SAID IT HAD NO SALES OF SBA GUARANTEED LOANS IN THE SECONDARY MARKET DURING THE 1993 FIRST QUARTER IN ACCORDANCE WITH IRS REGULATIONS REQUIRING THE COMPANY TO HOLD LOANS FOR AT LEAST THREE MONTHS BEFORE SELLING THE GUARANTEED PORTION THE PRACTICE ISN'T EXPECTED TO HURT EARNINGS FOR THE FULL YEAR IT SAID SECONDQUARTER LOAN SALES WHILE PROGRESSING WILL NOT BE SUFFICIENT TO MAKE UP FOR THE FIRST QUARTER'S LACK OF SALES THE COMPANY SAID SIMILARLY ALLIED CAPITAL CORP II A VENTURE CAPITAL COMPANY SAID IT EXPECTS FIRSTHALF RESULTS TO BE LOWER THAN THE 554 CENTS A SHARE REPORTED A YEAR EARLIER THE TWO INVESTMENT COMPANIES ARE MANAGED BY ALLIED CAPITAL ADVISERS INC 9306150079 930615 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY AGAIN WAS THE LEADING RECIPIENT OF FOREIGN INVESTMENT LAST YEAR AS COMPANIES CONTINUED PREPARATIONS FOR THE TRADE BLOC'S BARRIERFREE MARKET CREATED THIS YEAR THE BANK FOR INTERNATIONAL SETTLEMENTS SAID BUT THE INTERNATIONAL CLEARING BANK IN BASEL SWITZERLAND SAID IN ITS ANNUAL REPORT THAT THE WORLDWIDE TOTAL IN 1992 FELL 13 TO 1585 BILLION FROM A YEAR EARLIER REFLECTING DEFENSIVE STRATEGIES IN A SLOWING GLOBAL ECONOMY JAPANESE INVESTMENT ABROAD SLUMPED 44 TO 172 BILLION IN THE EC MERGERS AND STRATEGIC INVESTMENT BY NONEC COMPANIES BOOSTED INVESTMENT 25 TO 703 BILLION OF THE TOTAL BRITAIN LED WITH 19 BILLION FOLLOWED BY FRANCE WITH 16 BILLION IN EASTERN EUROPE FOREIGN INVESTMENT JUMPED 38 TO 33 BILLION IN ASIA THE TOTAL ROSE 17 TO 28 BILLION LED BY CHINA WITH 7 BILLION THE TYPICAL JAPANESE LEGISLATOR HAS 393 MILLION YEN 370245 IN PERSONAL ASSETS ALMOST FOUR TIMES AS MUCH AS THE JAPANESE HOUSEHOLD AVERAGE OF 10 MILLION YEN ACCORDING TO LAWMAKERS' ASSET REPORTS MADE PUBLIC FOR THE FIRST TIME A LAW PASSED LAST YEAR FOLLOWING POLITICAL SCANDALS REQUIRES THE 749 PARLIAMENT MEMBERS TO REPORT THEIR BANK DEPOSITS STOCKHOLDINGS REAL ESTATE AND OTHER PROPERTY CRITICS SAID THE REPORTS ARE FLAWED BY GAPS INCLUDING FAILURE TO INCLUDE ASSETS OF SPOUSES AND FAMILY MEMBERS THE LEGISLATION DOESN'T IMPOSE PENALTIES FOR FALSE REPORTS AS A UKRAINIAN COAL STRIKE CONTINUED TO SPREAD DEPUTY PRIME MINISTER YULI IOFFE GAVE UP THE ENERGY PORTFOLIO ABOUT 220 MINES WERE IDLED BY THE WALKOUT WHICH BEGAN JUNE 7 AND OTHER INDUSTRIES AND BUSINESSES HAVE JOINED THE PROTEST OVER LOW WAGES AND HIGH PRICES THOUSANDS OF MINERS AND THEIR SYMPATHIZERS RALLIED DEMANDING PARLIAMENT'S RESIGNATION PRESIDENT LEONID KRAVCHUK HAS ENDORSED THE MINERS' CALL FOR NEW ELECTIONS AND PROMISED ECONOMIC REFORMS AND MORE LOCAL CONTROL FOR THE HUGE COAL FIELDS MANY OF THE MINES ARE OLD AND IN DISREPAIR AND CAN OPERATE ONLY WITH HEAVY SUBSIDIES COMPLETION OF SOUTH KOREA'S FIRST HIGHSPEED RAIL LINE INITIALLY SCHEDULED BY 1998 WILL TAKE AT LEAST THREE YEARS LONGER BECAUSE OF TECHNICAL AND FUNDING PROBLEMS WORK BEGAN LAST YEAR ON THE 260MILE LINE TO LINK SEOUL AND THE SOUTHERN PORT CITY OF PUSAN THE PROJECT NOW IS EXPECTED TO COST 137 BILLION OR 71 MORE THAN FIRST ESTIMATED BECAUSE OF INFLATION AND CHANGES IN DESIGN AND RELATED PROGRAMS THE GOVERNMENT IS PAYING 45 OF THE COST WITH THE REST COVERED BY BONDS AND LOANS INTERNATIONAL AND DOMESTIC RAIL TRAFFIC IN ROMANIA CAME TO A STANDSTILL WHEN ABOUT 32000 WORKERS LAUNCHED A STRIKE OVER PAY TRADE UNIONS REPRESENTING ENGINEERS AND LOCOMOTIVE MAINTENANCE WORKERS CALLED THE WALKOUT TO PRESS FOR A PAY RAISE TO 102 A MONTH FROM 89 TO BRING THEIR WAGES ABOVE THOSE OF TRACK MAINTENANCE EMPLOYEES ROMANIA DECLARED THE STRIKE ILLEGAL BUT THE TRANSPORT MINISTRY OFFERED TO MEDIATE THE DISPUTE FOREIGN BUSINESS EXECUTIVES IN JAPAN SOUGHT TO HAVE THE OFFICE OF TRADE OMBUDSMAN STRENGTHENED TO ALLOW IT A MORE ACTIVE ROLE IN WIDENING THE JAPANESE MARKET TO PRODUCTS FROM ABROAD THE REPRESENTATIVES OF FOREIGN CHAMBERS OF COMMERCE MADE THE REQUEST IN A MEETING WITH ADVISERS TO THE OMBUDSMAN AT THE ECONOMIC PLANNING AGENCY THEY SAID JAPAN HASN'T EASED DIFFICULTIES THAT FOREIGN BUSINESSES FACE IN ENTERING THE MARKET EUROPEAN EXECUTIVES ALSO ASKED THE PANEL TO PUSH FOR A PROPOSED RELAXATION OF RESTRICTIONS ON FOREIGN LAWYERS' ACTIVITIES IN JAPAN THE DOWNTURN IN EASTERN GERMANY'S ECONOMY HAS BOTTOMED OUT IN ALL SECTORS THOUGH AT EXTREMELY LOW LEVELS A GOVERNMENT SPOKESMAN QUOTED ECONOMICS MINISTER GUENTER REXRODT AS TELLING A GATHERING OF BUSINESS AND LABOR REPRESENTATIVES BUT SOME OF THOSE ATTENDING SUCH AS THE FEDERATION OF GERMAN INDUSTRY WERE SKEPTICAL ABOUT THE BROADBASED CLAIM CHANCELLOR HELMUT KOHL SAID EASTERN CONSTRUCTION SERVICES AND SKILLED CRAFTS SHOWED GROWTH HE SAID INVESTMENT IN THE EASTERN REGION WOULD RISE 15 TO 130 BILLION MARKS 7992 BILLION THIS YEAR FOR THE GERMAN ECONOMY AS A WHOLE MR KOHL PREDICTED A BOTTOMING OUT LATE THIS YEAR CITING LOWER WESTERN GERMAN WAGE SETTLEMENTS LOWER INTEREST RATES AND IMPROVEMENTS IN SOME EXPORT MARKETS SEPARATELY GERMAN DEMAND FOR RESIDENTIAL AND COMMERCIAL MORTGAGE LOANS IN THIS YEAR'S FIRST FOUR MONTHS JUMPED 47 TO 2541 BILLION MARKS FROM A YEAR EARLIER BOOSTED BY THE PLANNED ELIMINATION OF THE TAX DEDUCTION FOR INTEREST PAYMENTS AT THE END OF 1994 THE US STATE DEPARTMENT ISSUED A WARNING ABOUT TRAVEL TO CONGO CITING POLITICAL UNREST CAUSED BY AN ELECTION DISPUTE MEMBERSHIP IN 7527 SOUTH KOREAN LABOR UNIONS LAST YEAR FELL FOR THE FOURTH YEAR IN A ROW TO 17 MILLION OR 164 OF THE 105 MILLION WORKERS ELIGIBLE TO JOIN DOWN FROM 172 IN 1991 WAGES HAVE RISEN ABOUT 60 SINCE 1987 AND LABORMANAGEMENT RELATIONS HAVE IMPROVED 9306150078 930615 BUSINESS BRIEF VWR CORP QUARTER'S EARNINGS EXPECTED TO BE 25 UNDER LAST YEAR'S VWR CORP WEST CHESTER PA SAID IT EXPECTS SECONDQUARTER EARNINGS TO BE AT LEAST 25 BELOW LAST YEAR'S RESULTS SHARES OF THE LABORATORY SUPPLY DISTRIBUTOR FELL 1125 YESTERDAY AFTER THE ANNOUNCEMENT CLOSING AT 12375 IN NATIONAL OVERTHECOUNTER TRADING VWR'S NET INCOME IN LAST YEAR'S SECOND QUARTER WAS 21 MILLION OR 19 CENTS A SHARE ON SALES OF 1195 MILLION A SPOKESMAN SAID DECREASED DEMAND BY PHARMACEUTICAL COMPANIES SOME OF VWR'S LARGEST CLIENTS DAMPED BUSINESS THE SPOKESMAN ATTRIBUTED THE BEHAVIOR OF PHARMACEUTICAL CLIENTS TO UNCERTAINTY ABOUT HEALTHCARE OVERHAUL AND ITS IMPACT ON THE INDUSTRY THEY'RE BEING CAUTIOUS IN THEIR EXPENDITURES HE SAID THE COMPANY SAID IT DOESN'T EXPECT BUSINESS TO GROW FOR THE REST OF THE YEAR 9306150077 930615 LEISURE & ARTS ON SPORTS IT WASN'T PRETTY BUT SUNS'LL TAKE THE WIN BY FREDERICK C KLEIN CHICAGO THE CHICAGO BULLS AND PHOENIX SUNS ARE ESTIMABLE BASKETBALL TEAMS AND ONE OF THEM THE BULLS PROBABLY WILL WIN THE PROFESSIONAL CHAMPIONSHIP OF THE US WHICH IS TO SAY THE WORLD BUT ON SUNDAY NIGHT HERE THEY PLAYED A GAME THAT WOULD HAVE MADE THE BOYS AT THE YMCA BLUSH IN GAME THREE OF THE NATIONAL BASKETBALL ASSOCIATION FINALS WHICH ENCOMPASSED THREE OVERTIME PERIODS AT CHICAGO STADIUM THESE THINGS HAPPENED FROM THE MIDDLE OF THE FOURTH PERIOD TO FOUR MINUTES INTO THE FIRST FIVEMINUTE OVERTIME A SPAN OF MORE THAN 10 MINUTES THE SUNS SCORED EXACTLY ONE FIELD GOAL FROM THE END OF THE THIRD QUARTER UNTIL THE START OF THE SECOND OVERTIME MICHAEL JORDAN THE BEST BASKETBALL PLAYER IN CREATION CONNECTED ON BUT TWO OF 14 SHOTS IN THE LAST 133 OF REGULATION TIME WITH THE SCORE TIED AT 103 THE SUNS LOST THE BALL VIA A TRAVELING VIOLATION AN OFFENSIVE FOUL AND A BULLS' STEAL WHILE THE BULLS MISSED THREE SHOTS ONE AN AIRBALL AND THE SUNS' KEVIN JOHNSON TOOK THE BALL AWAY FROM JORDAN WHILE THE LATTER WAS STANDING STILL PREDICTABLY THE CONTESTANTS' ASSESSMENTS OF THE ACTION VARIED WITH THE SIDE OF THE OUTCOME THEY WERE ON THE SUNS PREVAILED 129121 AFTER HAVING DROPPED THE FIRST TWO GAMES OF THE BESTOFSEVEN SERIES AT HOME AND THEY THOUGHT IT WAS BETTER THAN DANDY I THINK IT'LL GO DOWN AS ONE OF THE OUTSTANDING AND EXCITING GAMES IN HISTORY SAID PAUL WESTPHAL THE SUNS COACH DECLARED CHARLES BARKLEY THE PHOENICIANS' WIDEBODIED STAR IT WAS THE GREATEST GAME I'VE EVER PLAYED IN PHIL JACKSON THE BULLS COACH TOOK A CONTRARY STANCE IT WENT ON TOO LONG I THOUGHT IT WAS NEVER GONNA END HE SIGHED AND OBJECTIVE OBSERVERS THERE MUST BE SOME SOMEWHERE WOULD CONCUR IT WAS SHIRTS VS SKINS THE GAME THAT WAS TOO UGLY TO DIE A CONTEST BETTER SUITED TO HALLOWEEN THAN THE DAY BEFORE FLAG DAY BUT THE TWO TEAMS THE BULLS ESPECIALLY PROBABLY HAD A BAD ONE COMING THE TWOTIME DEFENDING CHAMPS HAD WON 13 OF 15 GAMES SINCE THE NBA PLAYOFFS BEGAN AND HAD JUST REELED OFF SIX STRAIGHT VICTORIES AGAINST PROBABLY THE SECOND AND THIRDBEST CLUBS IN THEIR LEAGUE THE SECONDBEST GANG MIGHT BE THE MUSCULAR NEW YORK KNICKS FROM WHOM THEY WON FOUR IN A ROW AFTER LOSING THE FIRST TWO OF THE EASTERN DIVISION FINAL THE TYPICAL NBA GAME IS ONE PART TRACK MEET TO ONE PART SUMO WRESTLING BUT THAT SERIES DOUBLED THE SUMO COMPONENT ITS MAIN THRILL WAS DEFENSIVE VARIOUS BULLS BLOCKING FOUR CONSECUTIVE SHOT ATTEMPTS FROM POINTBLANK RANGE BY THE KNICKS' 6FOOT10 CHARLES SMITH WITH THE GAME EXPIRING THE BULLS UP BY A SHAKY POINT AND THE SET TIED AT TWO GAMES EACH THE MASS EXHALATION IN CHICAGO THAT FOLLOWED THAT SEQUENCE DOWNED TREES AND POWER LINES THE WESTERNCHAMP SUNS WHOSE FORTE IS FLASH PRESENTED AN ALTOGETHER DIFFERENT CHALLENGE AND COACH JACKSON THOUGHT THE CONTRAST MIGHT DISCOMBOBULATE HIS BOYS WITHOUT KNICKS AROUND TO PLAY BUMPER TAG THE BULLS MIGHT FEEL LIKE THEY WERE DANCING HE SAID BUT DANCE THEY DID TO 10092 AND 111108 TRIUMPHS IN THE DESERT WITH JORDAN AND COACE SCOTTIE PIPPEN EXECUTING THE FANCIEST STEPS THREE CHAMPIONSHIPS IN A ROW A RARE ACCOMPLISHMENT IN PROFESSIONAL SPORTS SEEMED NEAR I'D CALL IT A THREEPEAT BUT I'M AFRAID I'D HAVE TO PAY A ROYALTY TO PAT RILEY THE KNICKS COACH WHO APPARENTLY COPYRIGHTED THE TERM A FEW YEARS BACK WHEN HIS LOS ANGELES LAKERS WERE ATTEMPTING THE FEAT WHY HASN'T DICK MOTTA DONE THE SAME FOR HIS FAR BETTER LINE ABOUT THE FAT LADY SINGING THE SUNS HOWEVER ALSO HAVE SOME NIMBLE FELLOWS THERE'S BARKLEY WHO'S QUITE AGILE DESPITE HIS GIRTH THE SWIFT POINT GUARD JOHNSON AND DAN MAJERLE AND DANNY AINGE WHO LED PHOENIX TO A LEAGUERECORD TOTAL OF THREEPOINT GOALS THE SUNS' GAME IS FOR JOHNSON TO EITHER DRIVE TO THE HOOP OR GET THE BALL TO BARKLEY HE BULLS BASKETWARD IF HE CAN OR PASSES IT OUT TO HIS LONGRANGE BOMBERS THE SCHEME WORKED WELL ENOUGH FOR THEM TO POST A LEAGUEHIGH 62 REGULARSEASON WINS AND DISPATCH THE LAKERS SAN ANTONIO SPURS AND SEATTLE SUPERSONICS IN PREVIOUS PLAYOFFS POSTINGS THE BULLS DIDN'T CONTAIN BARKLEY IN PHOENIX HE HAD 42 POINTS IN GAME TWO ALONE BUT THEY DID KEEP THE 6FOOT1 JOHNSON FROM HIS NORMAL ROUTES AND MAJERLE AND AINGE FROM FIRING AT WILL WITH BARKLEY SPORTING A LARGE PADDED ELBOW BANDAGE SUNDAY NIGHT THE PRODUCT OF A PAINFUL MEETING BETWEEN BONE AND FLOOR THE GAME BEFORE CONTINUED SUCCESS APPEARED LIKELY A NUMBER OF THINGS BOTH POSITIVE AND NEGATIVE UPSET THAT OUTCOME THE POSITIVES INCLUDED SIX THREEPOINT GOALS BY MAJERLE WHO'D TOTALED JUST FOUR IN THE FIRST TWO GAMES AND AN OFFENSIVE AND DEFENSIVE REBIRTH BY JOHNSON WHO'D PERFORMED SO BADLY IN GAMES ONE AND TWO THAT HE'D BEEN BOOED BY HIS HOME FANS ON SUNDAY HE PLAYED ALL BUT ONE OF THE GAME'S 63 MINUTES SCORED 25 POINTS AND PESTERED THE 6FOOT6 JORDAN EFFECTIVELY IN THE LATE GOING MOST OF THE NEGATIVES CAME FROM THE BULLS THEIR 42 FIELDGOAL AVERAGE WAS DOWN FROM 52 THE FIRST TWO GAMES AND JORDAN AND PIPPEN SHOT MORE THAN THEIR SHARE OF BLANKS NOTEWORTHY TOO WAS THE FACT THAT THE REFEREES PERMITTED THE BULLS BUT NINE FREE THROWS IN THE PROLONGED STRUGGLE TO 31 FOR THEIR FOES JACKSON WAS CLOSEMOUTHED ON THAT SUBJECT LATER CHOOSING TO BANK HIS PAYCHECK RATHER THAN SURRENDER A LARGE PORTION IN FINES MANY BASKETS WERE MADE AND MISSED IN THE LONG EVENING AND MANY LEADS GAINED AND SURRENDERED BUT THE KEY PLAY WAS DEFENSIVE AND SUDDEN WITH HIS TEAM TRAILING ONLY 118121 IN THE FINAL OVERTIME BULLS RESERVE STACEY KING REBOUNDED A MISSED PHOENIX SHOT AND CASUALLY FLIPPED THE BALL TOWARD JORDAN ONLY TO SEE BARKLEY WHO'D TAKEN A DECOY STEP UPCOURT RETURN TO SNATCH AND STUFF IT I HEARD MICHAEL CALL FOR THE BALL EXPLAINED SIR CHARLES WHO KNOWS THAT WHAT MICHAEL WANTS MICHAEL GETS BUT KEEPING MICHAEL FROM HIS THREEPEAT OK RILEY I'LL GIVE YOU A NICKEL WILL BE HARDER 9306150076 930615 ENTERPRISE JOHNSON PRODUCTS AGREES TO IVAX BUYOUT BY BRETT PULLEY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO JOHNSON PRODUCTS CO THE BLACKOWNED HAIR PRODUCTS PIONEER SENT A SHUDDER THROUGH THE ETHNIC PERSONALPRODUCTS INDUSTRY BY AGREEING TO BE ACQUIRED BY A PUBLICLY HELD NONMINORITY COMPANY IVAX CORP A MIAMI HOLDING COMPANY PROPOSED ACQUIRING IT FOR ABOUT 67 MILLION IN STOCK THE SURPRISE ANNOUNCEMENT IMMEDIATELY SPARKED CONCERN AMONG BLACKOWNED MAKERS OF PERSONALCARE PRODUCTS FOR ETHNIC CONSUMERS THEY'VE LONG WORRIED THAT DEEPPOCKETED MAINSTREAM CONSUMERPRODUCTS MANUFACTURERS WILL TARGET THE 15 BILLIONAYEAR ETHNIC HAIRCARE INDUSTRY THIS COMPANY HISTORICALLY HAS BEEN A BEACON TO OTHER BLACK ENTREPRENEURS IN THE COUNTRY SAID LAFAYETTE JONES FOUNDER OF THE AMERICAN HEALTH AND BEAUTY AIDS INSTITUTE THE TRADE GROUP FOR THE ETHNIC ARM OF THE INDUSTRY THERE ARE MANY PEOPLE WHO ARE SADDENED BY ITS SALE TO A GENERALMARKET COMPANY JOHNSON SHARES SOARED 5625 OR 30 ON THE AMERICAN STOCK EXCHANGE YESTERDAY CLOSING AT 24625 COMMON SHARES OF IVAX ALSO AN AMEX CONCERN CLOSED UNCHANGED AT 2525 MOST OF THE TWO DOZEN OR SO MAJOR PLAYERS IN THE ETHNIC PERSONALCARE INDUSTRY MANY OF WHOM NEED ADDITIONAL CAPITAL AND MARKETING CAPABILITIES HAVE VIEWED CONSOLIDATION AS INEVITABLE STILL THE POTENTIAL FOR FIERCE COMPETITION FROM THE BIGGER MAINSTREAM COMPANIES HAS REMAINED A MAJOR CONCERN THE PROPOSED ACQUISITION ALSO ILLUSTRATES WHAT CAN HAPPEN IN A FAMILYCONTROLLED COMPANY WHEN FAMILY MEMBERS SQUABBLE GEORGE AND JOAN B JOHNSON FOUNDED THE COMPANY IN 1954 AND JOAN JOHNSON TOOK CHARGE AS PART OF A DIVORCE SETTLEMENT IN 1989 THEIR SON ERIC JOHNSON EVENTUALLY TOOK OVER AS CHIEF EXECUTIVE OFFICER BUT ABRUPTLY LEFT THE COMPANY IN MARCH 1992 AFTER A FAMILY DISPUTE THAT LEFT MRS JOHNSON AS CHAIRWOMAN CHIEF EXECUTIVE AND MAJORITY STOCKHOLDER THE COMPANY'S FATE PERHAPS WAS SEALED WHEN MR JOHNSON RELINQUISHED CONTROL OF THE COMPANY INITIALLY MRS JOHNSON CONFIDED TO FRIENDS THAT SHE WANTED TO KEEP THE COMPANY IN FAMILY HANDS BUT DISCORD OVER THE COMPANY'S DIRECTION PERSISTED TRIGGERING ERIC JOHNSON'S DEPARTURE IN RECENT MONTHS ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION COMPANIES SUCH AS REVLON INC AND SOFT SHEEN PRODUCTS DISCUSSED A POSSIBLE TRANSACTION WITH MRS JOHNSON MRS JOHNSON WHO HOLDS 54 OF JOHNSON PRODUCTS SHARES HAD EXPRESSED CONCERN OVER MERGING WITH A NONMINORITY CONCERN YESTERDAY MRS JOHNSON SAID THE ACQUISITION WILL ENABLE JOHNSON PRODUCTS TO EXPAND DISTRIBUTION AND INVEST IN ITS CHICAGO FACILITY JOHNSON'S LINE OF PRODUCTS INCLUDES SUCH BRANDS AS ULTRA SHEEN CURLY PERM AND GENTLE TREATMENT IVAX PRODUCES SPECIALTY CHEMICALS PHARMACEUTICALS AND MEDICAL DIAGNOSTICS ITS FLORI ROBERTS INC SUBSIDIARY MARKETS COSMETICS AND A SKINCARE LINE TO BLACK CONSUMERS JOHNSON PRODUCTS PIONEERED THE MARKET FOR HAIR RELAXER AND ONCE HELD AN 80 MARKET SHARE AS THAT MARKET HAS GROWN TO ABOUT 200 MILLION A YEAR THE COMPANY'S SHARE HAS SLIPPED TO AS LOW AS 15 AS COMPETITORS ENTERED THE MARKET THE COMPANY AND GEORGE JOHNSON PLAYED AN INTEGRAL PART IN DEVELOPING OTHER SUCCESSFUL BLACKOWNED COMPANIES ESSENCE MAGAZINE BURRELL ADVERTISING AND OTHER WELLKNOWN BLACK ENTERPRISES OWE SOME OF THEIR SUCCESS TO JOHNSON IF NOT FOR GEORGE JOHNSON A LOT OF PEOPLE WOULD HAVE NEVER GOTTEN AN OPPORTUNITY SAID MR JONES THE TRADEGROUP FOUNDER AND FORMER VICE PRESIDENT OF MARKETING AT JOHNSON PRODUCTS WHILE MRS JOHNSON INITIALLY MAY HAVE WANTED TO KEEP THE COMPANY IN FAMILY HANDS A SQUABBLE OFTEN CAN CHANGE THAT GOAL SAY EXPERTS IN FAMILY BUSINESSES ONE OF THE ISSUES THAT ANY FAMILY BUSINESS HAS IS A PASSION TO KEEP THE BUSINESS IN THE FAMILY SAID JOHN MASSERVEY DIRECTOR OF THE NATIONAL FAMILIY BUSINESS COUNCIL A PRIVATE CONSULTING FIRM IN LAKE FOREST ILL THAT IS NOT TO SAY THAT SELLING OUT THE STOCK TO A LARGER ENTERPRISE IS A LOSS BUT THE SIGNIFICANT ISSUE IS HOW DURING FAMILY BUSINESS SUCCESSION SO MANY ISSUES CAN COME TO THE SURFACE AND HURT THE ORIGINAL LONGTERM GOAL PEOPLE CLOSE TO GEORGE JOHNSON SAID HE IS ANGERED BY THE PROPOSED ACQUISITION ASKED FOR HIS REACTION YESTERDAY MR JOHNSON CURTLY RESPONDED I HAVE NO COMMENT MRS JOHNSON COULDN'T BE REACHED IN A STATEMENT SHE SAID SHE BELIEVED THE TRANSACTION WILL BENEFIT OUR STOCKHOLDERS EMPLOYEES AND COMMUNITY THE COMPANY'S RESULTS HAVE IMPROVED STEADILY SINCE FISCAL 1988 WHEN IT LOST 25 MILLION ON SLIPPING SALES IN THE YEAR ENDED AUG 31 JOHNSON PRODUCTS EARNED 34 MILLION OR 286 A SHARE BEFORE A TAX CREDIT OF 19 BILLION ON SALES OF 429 MILLION THE AGREEMENT WITH IVAX CALLS FOR MRS JOHNSON TO REMAIN AS CHIEF EXECUTIVE EACH SHARE OF JOHNSON PRODUCTS COMMON STOCK WILL BE CONVERTED TO THE RIGHT TO RECEIVE ONE IVAX COMMON SHARE IF THE AVERAGE PRICE OF IVAX COMMON STOCK FOR THE 10 TRADING DAYS PRECEDING THE CLOSING IS MORE THAN 29 OR LESS THAN 2450 THE CONVERSION RATIO WILL BE ADJUSTED SO THAT EACH OUTSTANDING SHARE OF JOHNSON PRODUCTS STOCK WILL BE CONVERTED TO THE RIGHT TO RECEIVE IVAX SHARES WITH A VALUE EQUAL TO 29 OR 2450 THE COMPANIES SAID THE AGREEMENT IS SUBJECT TO TERMS BUT UNLESS JOHNSON'S DIRECTORS RECOMMEND OR ACCEPT A LARGER OFFER BY JULY 29 IT WILL BE CONSUMMATED THE COMPANIES SAID IN A PREPARED STATEMENT PHILLIP FROST IVAX CHAIRMAN AND CHIEF EXECUTIVE OFFICER CALLED THE MERGER COMPLEMENTARY TO SEVERAL OF THE BUSINESSES IVAX IS PURSUING 9306150075 930615 BUSINESS BRIEF ST JOHNSBURY TRUCKING CO TRUCKING CONCERN TO CLOSE BECAUSE OF FINANCIAL WOES ST JOHNSBURY TRUCKING CO ONE OF THE LARGEST TRUCK CARRIERS IN THE NORTHEAST SAID IT PLANS TO SHUT DOWN AS OF YESTERDAY BECAUSE OF SEVERE FINANCIAL PROBLEMS THE CLOSELY HELD CONCERN BASED IN HOLLISTON MASS EMPLOYED ABOUT 4000 PEOPLE OFFICIALS SAID THAT ANY UNDELIVERED FREIGHT WOULD BE REASSIGNED TO OTHER TRUCKING COMPANIES SEVERAL OF THE TRUCKING COMPANY'S NEW ENGLAND CUSTOMERS INCLUDING REEBOK INTERNATIONAL LTD SAID ST JOHNSBURY'S COLLAPSE SHOULD HAVE NO EFFECT ON SHIPMENTS IN A NEWS RELEASE THE TEAMSTERS UNION SAID ST JOHNSBURY TOLD THE UNION IT PLANS TO FILE A BANKRUPTCYLAW PETITION IN NEW YORK TODAY THE UNION ADDED THAT THE COMPANY PLANS TO LIQUIDATE ALL ITS ASSETS 9306150074 930615 LETTERS TO THE EDITOR US BETRAYS HERITAGE WITH POPULATION CONTROL YOUR WASHINGTON INSIGHT COLUMN CLINTON ADMINISTRATION CAN PUT US BACK IN FOREFRONT OF POPULATION CONTROL MAY 17 SOUNDED LIKE A PROPAGANDA PIECE FROM THE UN POPULATION FUND YOU WRITE THAT POPULATION PROGRAMS AMOUNT TO GIVING PEOPLE THE WHEREWITHAL TO CONTROL THEIR REPRODUCTION NONSENSE THEY GIVE GOVERNMENTS IN THE DEVELOPING WORLD THE WHEREWITHAL TO SUBTLY AND SOMETIMES NOT SO SUBTLY COERCE THEIR PEOPLE TO HAVE FEWER CHILDREN THAN THEY WISH BY THREATENING TO WITHHOLD FOOD JOBS MEDICAL CARE AND OTHER NECESSITIES CONTRARY TO YOUR CLAIM THAT WOMEN IN DEVELOPING COUNTRIES WANT FEWER CHILDREN BUT LACK RESOURCES FOR BIRTH CONTROL THE POPULATIONCONTROL ESTABLISHMENT READILY ADMITS AND SURVEYS SHOW THAT FAMILIES IN MANY DEVELOPING AREAS WOULD LIKE EVEN MORE CHILDREN IT IS A MYTH THAT THIRD WORLD WOMEN LACK ACCESS TO BIRTH CONTROL THEY HAVE PRACTICED IT FOR GENERATIONS IF THEY DO NOT USE WESTERN CONTRACEPTIVES IT IS BECAUSE THEY DO NOT WANT THEM LARGE FAMILIES ARE STILL ESTEEMED IN POOR COUNTRIES FOR THEIR CONTRIBUTION TO THE ECONOMY AND FOR INCOME WHEN THE PARENTS RETIRE THE ECONOMICS PROFESSION HAS REJECTED THE NOTION THAT POPULATION GROWTH IMPEDES PROSPERITY WERE THAT TRUE THE US ENGLAND HONG KONG AND SINGAPORE WOULD NOT BE PROSPEROUS TODAY EACH GREW RICH DURING PERIODS OF VIGOROUSLY EXPANDING POPULATIONS MOST OF THE WORLD'S AFFLUENT COUNTRIES ARE DENSELY POPULATED THE POOREST HAVE THE SPARSEST POPULATIONS POPULATION CONTROL IS PEOPLE CONTROL THE US BETRAYS ITS HERITAGE BY HAVING ANYTHING TO DO WITH IT 9306150073 930615 DEUTSCHE BANK ARM IS COMBINING UNITS TO FOCUS ON IPOS BY FRED R BLEAKLEY STAFF REPORTER OF THE WALL STREET JOURNAL DEUTSCHE BANK NORTH AMERICA IS COMBINING THREE US UNITS TO POSITION ITSELF AS A BIG PLAYER IN THE US SALE OF FIRSTTIME STOCK OFFERINGS BY EUROPE'S INDUSTRIAL GIANTS BY FORMING THE NEW UNIT DEUTSCHE BANK SECURITIES THE US ARM OF DEUTSCHE BANK AG OF GERMANY WILL BE ABLE TO GET AROUND LEGAL BARRIERS THAT LIMIT ITS UNDERWRITING AND SELLING OF SECURITIES IN THE US ALTHOUGH THE NEW UNIT ISN'T EXPECTED TO TAKE A MAJOR ROLE IN OFFERINGS BY US COMPANIES IT HOPES TO TAKE ADVANTAGE OF ITS EUROPEAN TIES TO UNDERWRITE MANY OF THE US STOCK OFFERINGS BY STATEOWNED EUROPEAN COMPANIES EXPECTED IN THE NEXT FEW YEARS NOW WE'RE IN A POSITION TO DEVELOP A COHERENT STRATEGY FOR OUR INVESTMENT BANKING ACTIVITY SAID JOHN ROLLS THE HEAD OF DEUTSCHE BANK NORTH AMERICA WHO JOINED THE COMPANY IN THE FALL FROM UNITED TECHNOLOGIES INC WHERE HE WAS CHIEF FINANCIAL OFFICER THE BANK FOR INSTANCE OWNS CJ LAWRENCE INC A WALL STREET FIRM WHOSE EQUITY RESEARCH IS POPULAR WITH A BROAD RANGE OF US INSTITUTIONAL INVESTORS BUT WHEN ACQUIRED A FEW YEARS AGO IT HAD TO BE SET UP AS A SECTION 20 SUBSIDIARY UNDER FEDERAL RESERVE BOARD RULES WHICH CURBED ITS UNDERWRITING AND SALES OF NEW STOCK OFFERINGS TO 10 OF TOTAL REVENUE IRONICALLY ONE OF THE OTHER TWO UNITS HAD NO RESTRICTIONS ON HOW MUCH CORPORATE UNDERWRITING BUSINESS COULD BE DONE THAT UNIT DEUTSCHE BANK CAPITAL CORP MANAGES AND DISTRIBUTES INTERNATIONAL SECURITIES UNDER THE INTERNATIONAL BANKING ACT OF 1978 DEUTSCHE BANK CAPITAL WAS GRANDFATHERED AND ALLOWED TO CONTINUE AS AN ORIGINATOR OF CORPORATE SECURITIES OFFERINGS BUT THE UNIT COULDN'T GROW BY MERGING WITH OR ACQUIRING OTHER FIRMS OR DEPARTMENTAL GROUPS OF MORE THAN FOUR PEOPLE NOR WAS IT ALLOWED TO INTERACT WITH OTHER AREAS OF THE BANK ALSO PART OF DEUTSCHE BANK CAPITAL IS DEUTSCHE BANK GOVERNMENT SECURITIES INC A PRIMARY DEALER IN US GOVERNMENT SECURITIES BY GIVING UP THE GRANDFATHER PRIVILEGE AND COMBINING THAT UNIT WITH THE SECTION 20 UNIT DEUTSCHE BANK ELIMINATES THE FRUSTRATION OF HAVING WHAT IT NEEDS BUT NOT BEING ABLE TO DO MUCH WITH IT NOW THE REVENUE OF THE UNIT PREVIOUSLY GRANDFATHERED PLUS DEUTSCHE BANK GOVERNMENT SECURITIES GIVES THE SECTION 20 UNIT ROOM TO GROW AND WHAT WAS FORMERLY THE GRANDFATHERED UNIT HAS A LARGER DISTRIBUTION ARM IN THE FORM OF CJ LAWRENCE EVEN WITH THE COMBINED ENTITY SAMUEL HAYES III A PROFESSOR OF FINANCE AT HARVARD BUSINESS SCHOOL BELIEVES DEUTSCHE BANK WILL FIND THAT WINNING THE UNDERWRITING BUSINESS OF US CORPORATIONS WON'T COME EASILY THAT'S WHY THE BEST SHOT AT THE US MARKETPLACE IS THE CROSSBORDER DEAL HE ADDS MR ROLLS SAYS THE 1500 OR SO INSTITUTIONAL CONTACTS AT CJ LAWRENCE GIVE US AN OPPORTUNITY TO BE A MAJOR FACTOR IN INTRODUCING FOREIGN CORPORATIONS TO THIS MARKET IT'S ESTIMATED THAT THE SALES OF PREVIOUSLY STATEOWNED COMPANIES IN EUROPE COULD AMOUNT TO AT LEAST 30 BILLION A YEAR FOR THE NEXT FIVE YEARS OR SO US PENSION FUNDS HAVE SHOWN AN INCREASING INTEREST IN FOREIGN CORPORATIONS ACCUMULATING SHARES IN THOSE COMPANIES AT A FAST CLIP SINCE 1987 FOREIGN SECURITIES OF US PENSION FUNDS HAVE TRIPLED TO 150 BILLION ESTIMATES INTERSEC RESEARCH CORP STAMFORD CONN BY 1997 INTERSEC ESTIMATES THE FIGURE WILL GROW TO 430 BILLION 9306150072 930615 TECHNOLOGY WEEDKILLER COULD BE THE KEY TO TREATING SOME TROPIC DISEASES NEW YORK A WIDELY USED AGRICULTURAL WEEDKILLER MAY SERVE AS THE BASIS FOR A NEW DRUG AGAINST LEISHMANIASIS A TROPICAL DISEASE AFFECTING ABOUT 12 MILLION PEOPLE IN 80 COUNTRIES IN A REPORT PUBLISHED TODAY SCIENTISTS AT RUTGERS UNIVERSITY IN PISCATAWAY NJ SAID THE WEEDKILLER KNOWN UNDER THE BRAND NAME TREFLAN IN LABORATORY STUDIES KILLED THE PARASITE THAT CAUSES THE DISEASE THE SCIENTISTS ALSO SUGGESTED IT MIGHT BE USEFUL AGAINST THE PARASITES THAT CAUSE OTHER TROPICAL ILLNESSES SUCH AS MALARIA TREFLAN KNOWN ALSO AS TRIFLURALIN IS A HUGESELLING AGRICULTURAL AND HOMEGARDEN HERBICIDE USED WIDELY TO SELECTIVELY CONTROL WEEDS IN COTTON BEAN SOYBEAN PEANUT AND CEREALGRAIN FIELDS IT IS SOLD MOSTLY BY ITS DEVELOPER DOW ELANCO OF INDIANAPOLIS A JOINT VENTURE OF DOW CHEMICAL CO AND ELI LILLY & CO ALTHOUGH THE ITS PANT EXPIRED AND IT IS SOLD BY GENERIC CHEMICAL MAKERS TOO LEISHMANIASIS IS A SET OF TROPICAL SKIN DISEASES CAUSED BY INFECTION FROM A PARASITE TRANSMITTED VIA THE BITE OF CERTAIN SAND FLIES THE INFECTION CAUSES SEVERE SKIN SORES THAT CAN BE LETHAL IF NOT TREATED DRUGS COMMONLY USED TO FIGHT OFF THE INFECTION HAVE A WIDE RANGE OF SIDE EFFECTS IN THE NEW STUDY LED BY MARION CHAN AND DUNNE FONG OF RUTGERS'S DEPARTMENT OF BIOLOGICAL SCIENCES RESEARCHERS FOUND IN TESTTUBE EXPERIMENTS INVOLVING RODENT CELLS THAT TREFLAN INTERFERES WITH CELLULAR SUPPORT STRUCTURES COMMON IN CERTAIN PARASITES IN THEIR REPORT IN THE PROCEEDINGS OF THE NATIONAL ACADEMY OF SCIENCES THE RESEARCHERS SAID USE OF THE HERBICIDE AS A TOPICAL OINTMENT ALSO HELPED HEAL SKIN SORES IN LAB RODENTS THE RESEARCHERS SAID THEY BELIEVED A HUMAN DRUG COULD BE DEVELOPED FROM TREFLAN'S MAIN INGREDIENT SINCE IT ISN'T KNOWN TO BE TOXIC TO HUMAN CELLS 9306150071 930615 UPS'S TALKS WITH TEAMSTERS HEAT UP AS COMPANY MOVES TO STAVE OFF STRIKES BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA CONTRACT NEGOTIATIONS BETWEEN UNITED PARCEL SERVICE OF AMERICA INC AND THE TEAMSTERS UNION ARE HEATING UP AS UPS TRIES TO BRING ITS OPERATIONS UNDER A LABOR JURISDICTION THAT MAKES IT HARDER FOR THE UNION TO STRIKE THE PRIVATELY HELD PACKAGE DELIVERER TWO WEEKS AGO WROTE TWOPAGE LETTERS TO A DOZEN NATIONAL LABOR RELATIONS BOARD REGIONAL OFFICES TO ASK THAT ITS OPERATIONS BE CONSIDERED UNDER THE RAILWAY LABOR ACT THAT WOULD REQUIRE LONGER PERIODS OF MEDIATION AND A WAITING PERIOD BEFORE ITS WORKERS WOULD BE ALLOWED TO STRIKE THIS REQUEST COMES AS THE COMPANY ENTERS ITS THIRD MONTH OF NEGOTIATIONS WITH THE TEAMSTERS ON A THREEYEAR CONTRACT AFFECTING ITS 165000 DRIVERS PACKAGE SORTERS AND MECHANICS UPS IS THE BIGGEST SINGLE TEAMSTERS SHOP IN THE COUNTRY WHICH MAKES IT SOMETHING OF A LITMUS TEST FOR UNION PRESIDENT RON CAREY WHO IS TRYING TO REFORM THE UNION ALTHOUGH THE NLRB ISN'T EXPECTED TO ACT ON THE UPS REQUEST BEFORE THE TEAMSTERS CONTRACT EXPIRES JULY 31 THE MOVE INTRODUCES MORE TENSION INTO ALREADY HEATED TALKS SO FAR THE TALKS HAVE CENTERED ON WORKING CONDITIONS RATHER THAN WAGES AND BENEFITS THE UNION CALLING ITSELF THE NEW TEAMSTERS IS MORE ADAMANT THAN EVER BEFORE IN PRESSING THE COMPANY TO LOOSEN RIGID PROCEDURES IN SUCH AREAS AS THE GRIEVANCE PROCESS AND PRODUCTIVITY LAWYERS FAMILIAR WITH THE TALKS SAY UPS WOULDN'T COMMENT ON THE SPECIFICS OF THE TALKS BUT A SPOKESMAN SAID THAT THE COMPANY REMAINS OPTIMISTIC THAT IT WILL REACH A SETTLEMENT BEFORE THE CONTRACT EXPIRES PEOPLE FAMILIAR WITH BOTH SIDES OF THE NEGOTIATIONS SAY THAT THEY'RE PROGRESSING MORE SLOWLY THAN USUAL IN PART BECAUSE OF THE NEW TEAMSTER LEADERSHIP MR CAREY WAS ONCE A UPS DRIVER HIMSELF HE LATER RAN A NEW YORK LOCAL UNION OFFICE THAT TENDED TO DISAGREE WITH NATIONAL TEAMSTERS BARGAINING TACTICS VOTING DOWN UPS CONTRACTS THE NATIONAL GROUP RATIFIED AND EVEN TAKING A LAWFUL STRIKE IN DEFIANCE OF THE NATIONAL UNIT ACCORDING TO LAWYERS FAMILIAR WITH THE TEAMSTERS STILL THE TEAMSTERS ARE FAIRLY RESTRICTED IN HOW CONFRONTATIONAL THEY CAN GET THE UNION IS STUCK WITH A 50 MILLION STRIKE FUND THAT WOULD BE LARGELY DRAINED BY A ONEWEEK NATIONWIDE UPS STRIKE SO UNION LEADERS SAY THEY WOULD CONSIDER SELECTIVE STRIKES OR A NEGATIVE CORPORATE PUBLICITY CAMPAIGN IF TALKS FLOUNDER BUT UNION LEADERS SAY THEY INTEND TO KEEP TALKING TO THE COMPANY EVEN BEYOND THE CONTRACT EXPIRATION DATE IT VERY WELL MAY TAKE UNTIL AUGUST SAID MARIO PERRUCCI THE LEAD TEAMSTER NEGOTIATOR UPS HAS EVERYTHING TO LOSE FROM A LONG DRAWNOUT BATTLE GIVEN THAT ITS KEY COMPETITOR FEDERAL EXPRESS CORP IS LARGELY NONUNIONIZED AND POISED TO TAKE ITS BUSINESS IT'S PRETTY EASY TO SWITCH SAID ONE UPS SHIPPER SEVERAL UPS CUSTOMERS SAY THEY WOULDN'T MOVE THEIR ACCOUNTS UNLESS IT BECAME CLEAR THAT THERE WOULD BE A STRIKE ONE LARGE SHIPPER SAID UPS HAS PROMISED IT ADVANCE WARNING IN THAT EVENT UPS MOVED TO BE CONSIDERED UNDER THE RAILWAY LABOR ACT IN PART BECAUSE FEDERAL EXPRESS ALREADY FALLS UNDER THAT JURISDICTION COMPANIES COVERED BY THE LAW ARE REQUIRED TO TAKE THEIR STICKIEST UNION DISPUTES BEFORE THE NATIONAL MEDIATION BOARD FOR ARBITRATION AND THAT PROCESS CAN GO ON FOR SIX MONTHS TO TWO OR MORE YEARS BEFORE AN IMPASSE IS DECLARED AND THE UNION IS ALLOWED TO STRIKE THE NLRB AND THE NATIONAL MEDIATION BOARD HAVE BEEN CONSIDERING SINCE 1991 WHETHER FEDERAL EXPRESS SHOULD REMAIN PART OF THAT JURISDICTION AND HAVEN'T YET REACHED A DECISION 9306150069 930615 LEISURE & ARTS THE GALLERY NEW RESPECT FOR ART OF THE SOUTHERN CONE BY MICHAEL DUCKWORTH BUENOS AIRES SCATTERED THROUGHOUT THIS PROUD CITY ARE BEAUXARTS CULTURAL INSTITUTIONS WITH BROKEN WINDOWS AND PEELING PAINT BUT INVARIABLY OUT FRONT A BLAZE OF FLOWERS PURPLE YELLOW ORANGE SUGGEST THAT A VIBRANT CULTURE LONG IN HIBERNATION IS STRUGGLING TO ITS FEET MORE PALPABLE EVIDENCE OF THE RESURGENCE CAN BE SEEN IN THE RISING INTERNATIONAL CURRENCY OF ARTISTS FROM THE SOUTHERN CONE THE REGION ANCHORED IN BUENOS AIRES AND EXTENDING BEYOND ITS CORE OF ARGENTINA AND URUGUAY INTO CHILE AND SOUTHERN BRAZIL THIS SUBCONTINENT IS HOME TO THE MOST EUROPEAN AND ARGUABLY MOST INTELLECTUAL POPULATION IN ALL OF LATIN AMERICA ALTERNATELY STERN MELANCHOLY SPARE AND SUBLIME THE ART RADIATING FROM BUENOS AIRES IS GIVEN MORE TO ABSTRACTION AND FORMAL CONCERNS THAN THE MORE FOLKLORIC AND FIGURATIVE WORK FROM ELSEWHERE IN LATIN AMERICA NORTH AMERICANS CAN TAKE STOCK OF THIS BY VISITING THE GIANT NEW SHOW LATIN AMERICAN ARTISTS OF THE TWENTIETH CENTURY NOW AT NEW YORK'S MUSEUM OF MODERN ART THROUGH SEPT 7 AS ONE DIGESTS THE MORE THAN 300 WORKS ON DISPLAY THE ART OF THE SOUTHERN CONE STANDS OUT AS MORE IN STEP WITH EUROPEAN TRENDS LESS BEHOLDEN TO SOCIAL REALISM AND MORE INCLINED TO SYMBOLIC POLITICAL COMMENTARY TAKE VICTOR GRIPPO'S HARROWING ELECTRODEIMPLANTED POTATO ANALOGY OR LUIS CAMNITZER'S ANY IMAGE WAS TO BE CHERISHED UNDER THE CIRCUMSTANCES WHICH WITH A LONELY CHAIR AND AN EMPTY FRAME RECREATES THE CELL OF A PRISONER AWAITING TORTURE THIS EXHIBITION AND THE SOUTHERN CONE'S ROBUST SHOWING IN PARTICULAR WILL HELP LATIN AMERICAN ART SHAKE OFF THE PARADOXICAL PROVINCIAL AND DERIVATIVE LABELS THAT HAVE LONG HANDICAPPED IT IN THE EYES OF FOREIGN CRITICS AND KEPT ITS ARTISTS FROM BEING RECEIVED AS FELLOW REINVENTORS OF EUROPEAN CULTURE WE COULDN'T HAVE DONE THIS SHOW IN 1981 PEOPLE WERE TOO HOSTILE SAYS WALDO RASMUSSEN THE EXHIBITION'S CURATOR WHO IS RETIRING AFTER 39 YEARS AT MOMA I'VE BEEN PREACHING FOR SO LONG ENCOUNTERING A LOT OF RESISTANCE HE SAYS BUT IT'S NOT THERE ANYMORE CERTAINLY THE FACT THAT MULTICULTURALISM IS POLITICALLY CORRECT HAS SOMETHING TO DO WITH IT BUT THERE'S ALSO A PERCEPTION THAT LATIN AMERICA ISN'T REALLY FOREIGN THAT WE HAVE THINGS IN COMMON WITH LATIN AMERICANS THAT WE DON'T WITH EUROPEANS YES AND NO IN PARIS FRANCOIS MITTERRAND ATTENDED THE SHOW'S OPENING BILL CLINTON WAS TOO BUSY FREEZING HAITIAN ASSETS AND CUTTING AID TO GUATEMALA IN THE NAME OF DEMOCRACY AND THE BULK OF THE EXHIBITION IS TUCKED AWAY IN MOMA'S BASEMENT WHEREAS PARIS GAVE IT MAINSTAGE TREATMENT AND SUPPLEMENTARY EXHIBITS THE SHOW ITSELF PERPETUATES SOME ANTIQUATED IDEAS ABOUT LATIN AMERICAN CULTURE WHILE IT DOES GIVE MUCH GREATER PROMINENCE TO ART FROM THE SOUTHERN CONE THAN PREVIOUS US EXHIBITIONS ITS ENCYCLOPEDIC AMBITIONS PERPETUATE THE FICTION THAT LATIN AMERICA TRULY EXISTS AS A COHERENT ENTITY IT'S A CATCH22 SAYS EDWARD SULLIVAN A NEW YORK UNIVERSITY PROFESSOR WHO CONTRIBUTED TO THE SHOW'S CATALOG PEOPLE DON'T KNOW THE ART SO AN OPPORTUNITY LIKE THIS TO SEE A WIDE VARIETY OF PAINTINGS AND SCULPTURES IS VERY GOOD SIMPLY BECAUSE OF ITS EXPOSURE BUT WOULD THE MUSEUM OF MODERN ART DO AN EXHIBITION CALLED EUROPEAN ARTISTS OF THE TWENTIETH CENTURY' NO A DEEPER DISTORTION NOT FULLY REMEDIED BY THE EXHIBITION IS THAT OF WHAT MIGHT BE CALLED THE MEXICAN LENS OR BETTER STILL CALL IT THE LENS OF DIEGO RIVERA AND THE MEXICAN REVOLUTION OF 1915 THE LENS THROUGH WHICH THE US ART PUBLIC HAS CONSISTENTLY VIEWED SOUTH AMERICAN ART THE MEXICAN LENS KEEPS US FROM FOCUSING ON CRUCIAL FACTS ABOUT THE VARIOUS LATIN AMERICAN CULTURAL IDENTITIES IT PREVENTS US FOR EXAMPLE FROM RECOGNIZING THAT BUENOS AIRES PRECEDED NEW YORK AS THE BRIGHTEST STAR IN THE WESTERN HEMISPHERE OR THAT URUGUAY AND ARGENTINA ARE NEARLY AS ITALIAN IN ETHNIC COMPOSITION AS THEY ARE SPANISH OR THAT SAO PAULO BRAZIL IS HOME TO THE LARGEST JAPANESE POPULATION OUTSIDE JAPAN NOR DOES THE MEXICAN LENS EASILY ACCOMMODATE THE ARTISTIC VARIETY OF THE SOUTHERN CONE MEXICAN REDANDYELLOW DOMINATES THE FLAGS OUTSIDE MOMA THE SHOW'S CENTERPIECE PAINTING IS BY THE CONTEMPORARY MEXICAN ARTIST JULIO GALAN AND THE FIRST FIVE WORKS IN THE EXHIBITION PROPER ARE BY RIVERA BUT THESE ARE QUICKLY FOLLOWED BY SUBSTANTIAL CONTRIBUTIONS FROM RAFAEL PEREZ BARRADAS TARSILA DO AMARAL AND XUL SOLAR PIONEERING MODERNISTS OF URUGUAY BRAZIL AND ARGENTINA RESPECTIVELY ALL TOLD ARGENTINA ACCOUNTS FOR ABOUT 20 OF THE WORKS IN THE SHOW ROUGHLY ON A PAR WITH MEXICO ALL TOLD THE COUNTRIES OF THE SOUTHERN CONE OCCUPY NEARLY HALF THE EXHIBITION WHILE PERU AND ECUADOR ARE IGNORED ENTIRELY BUT THIS SELECTION SHOWS A HEALTHY AND LONGOVERDUE REAPPRAISAL OF THE STATE OF ART SOUTH OF THE US BORDER THERE COULD'VE BEEN ROOM FOR EVEN MORE ARGENTINE ART SAYS MR SULLIVAN NOTING THE SAD OMISSION OF THE CUBIST EMILIO PETTORUTI BUT ARGENTINA WITH THE INCLUSION OF SOME OF THE 1960S EXPRESSIONIST PAINTERS AND WITH THREE WORKS BY CONTEMPORARY ARTIST GUILLERMO KUITCA DOES HAVE AN IMPORTANT ROLE BACK IN ARGENTINA THE LIVELY LOCAL ART WORLD IS CONVINCED THAT THE MOMA EXHIBITION IS ONE MORE SIGN THAT THE '90S WILL BE FOR ARGENTINE VISUAL ARTS WHAT THE '60S WERE FOR JORGE LUIS BORGES AND OTHER ARGENTINE WRITERS A WATERSHED OF INTERNATIONAL ACCLAIM WITH THE SNOWBALL OF INTEREST IN LATIN AMERICAN ART THAT BEGAN WITH RISING AUCTION PRICES IN THE MID'80S HAVING BEEN AUGMENTED BY A STRING OF SMALLER BUT IMPORTANT RECENT US EXHIBITIONS AND THE FIRST INCLUSION OF SOUTH AMERICAN HABITANTS INCLUDING ARGENTINA'S MR KUITCA A CHILEAN AND FIVE BRAZILIANS IN GERMANY'S DOCUMENTA LAST YEAR THERE IS A SENSE IN BUENOS AIRES THAT CULTURE IS BEGINNING TO REGAIN THE MOMENTUM IT LOST IN THE REPRESSIVE MURDEROUS '60S AT THAT TIME AMID SPREADING EUROPEAN ACCLAIM FOR BORGES ARGENTINE ARTISTS WON TWO FIRST PRIZES AT THE VENICE BIENNALE IN THE '60S BUT DICTATORSHIP SOON KILLED THE MOMENTUM BRINGING A CHOKEHOLD OF SINISTER VIOLENCE TO ARGENTINA THAT LASTED UNTIL THE MILITARY'S 1982 HUMILIATION IN THE FALKLANDS MEANWHILE ACROSS THE RIVER IN URUGUAY A DECADE OF TERROR COMMENCED WITH A MILITARY COUP IN 1973 EVEN TODAY INTELLECTUALS IN BOTH COUNTRIES FEEL THE STING OF FEAR AND DENIAL CULTURAL INSTITUTIONS TOO HAVE YET TO RECOVER FROM THE YEARS OF DICTATORSHIP THERE IS NO TOILET PAPER IN THE CITY'S FINEST MUSEUM AND CLIMATE CONTROL IS SO PRIMITIVE THAT MUSEUMS IN EUROPE AND NORTH AMERICA WOULD REFUSE TO LEND THEIR MASTERPIECES EVEN IF THE MUSEUM HAD THE MONEY TO COVER INSURANCE AND SHIPPING COSTS MEANWHILE ARGENTINES ARE GETTING PLENTY OF IMPORTED POP CULTURE US MAGAZINES DOMINATE NEWSSTANDS AND MOVIES SUCH AS A FEW GOOD MEN ARRIVE JUST WEEKS AFTER THEIR US DEBUT WITH A PUBLICITY MACHINE THAT OVERWHELMS LOCAL FILMS IT'S PARALYZING ALL WE RECEIVE FROM THE US AND EUROPE SAYS JORGE CASTILLO URUGUAY'S FOREMOST ART DEALER BUT HE SEES SOME ENCOURAGING SIGNS THAT THE CULTURAL TRANSFER IS BECOMING MORE OF A TWOWAY STREET THE MENTALITY TOWARD LATIN AMERICA IS CHANGING IN NORTH AMERICA A MINORITY OF LATIN AMERICANS ARE GETTING RESPECT WHO NEVER HAD IMPORTANCE AT THE TABLE HE GOES ON TO NOTE THAT PROGRESS AT HOME THE DECLINE OF AUTHORITARIANISM THE RISE OF SPONTANEITY IS HELPING LOCAL ARTISTS TURN CONCEPTUAL CORNERS AT HOME AND GAIN RESPECTABILITY ABROAD AND FOREIGN RECOGNITION IS STILL THE DEFINITION OF SUCCESS FOR MOST ARTISTS OF THE SOUTHERN CONE MAKING IT CULTURALLY STILL MEANS MAKING IT IN NEW YORK BUT AT LEAST ONE ARGENTINIAN ARTIST IS BREAKING THAT MOLD MR KUITCA AT 32 YEARS OF AGE HAS DONE EVERYTHING RIGHT CLIMBING THE LADDER SLOWLY NOT UNDERPRICING HIS WORK AT HOME AND HE HAS ALREADY HAD AN INDIVIDUAL SHOW AT MOMA BUT A FEW YEARS AGO WHEN THE ANNINA NOSEI GALLERY IN SOHO OFFERED HIM A CONTRACT ON THE CONDITION THAT HE MOVE TO NEW YORK HE REFUSED THE GALLERY GAVE IN AND MR KUITCA A BRIGHT FLOWER POKING UP THROUGH THE DIRT REMAINS IN BUENOS AIRES CONDUCTING WEEKLY TUTORIALS FOR YOUNG ARTISTS AT MOMA THREE KUITCAS ARE ON VIEW INCLUDING A TRADEMARK MATTRESS MAP LITERALLY A MAP PAINTED ON A MATTRESS AND A PIECE THAT COMPARES THE ODESSA STEPS SEQUENCE IN SERGEI EISENSTEIN'S POTEMKIN TO AN ARGENTINE ROOM DRENCHED IN BLOOD IN ITS EXPLICIT AWARENESS OF EUROPE AND THE US WITHOUT FEALTY OR ANY ADMISSION OF INFERIOR DIGNITY AND IN ITS SOBER APPRAISAL OF ARGENTINA'S PAST MR KUITCA'S WORK IS AN EMBLEM OF THE SEA CHANGE TAKING PLACE IN ART OF THE SOUTHERN CONE AND IN ITS STANCE TOWARD THE OUTSIDE WORLD MR DUCKWORTH IS AN EDITOR ON THE JOURNAL'S OVERSEAS COPY DESK 9306150068 930615 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY CHRISTOPHER CONTE EARLY RETIREMENT RECENT SIGNS SUGGEST THE TREND IS REVERSING ALREADY WILLIAM M MERCER INC REPORTS THAT 43 OF LARGE AND MIDSIZE COMPANIES EXPECT THE AVERAGE RETIREMENT AGE CURRENTLY 617 YEARS TO RISE BY THE YEAR 2000 WHILE 18 SAY IT WILL DECLINE MERCER SAYS 47 OF COMPANIES PREDICT THAT IN 2000 THE AVERAGE SALARIED EMPLOYEE WON'T BE ABLE TO AFFORD TO RETIRE AT 65 COMPARED WITH 63 WHO SAY SUCH AN EMPLOYEE COULD AFFORD IT TODAY SOME 75 OF COMPANIES SURVEYED BY MERCER SAY FUTURE EMPLOYEE SAVINGS WILL HAVE TO COVER MORE THAN THE 24 OF RETIREMENT INCOME THEY CURRENTLY PROVIDE MOUNTING VIOLENCE PROMPTS SOME MOVES TO IMPROVE WORKPLACE SECURITY HOMICIDE ACCOUNTED FOR 12 OF WORKPLACEINJURY DEATHS FROM 1980 TO 1988 SAYS THE NATIONAL INSTITUTE OF OCCUPATIONAL SAFETY AND HEALTH OUTPACED ONLY BY MOTOR VEHICLE AND MACHINERELATED INJURIES FOR WOMEN HOMICIDE WAS THE NO 1 CAUSE OF DEATH ON THE JOB SOUTHLAND CORP PARENT OF 7ELEVEN STORES URGES EMPLOYEES NOT TO ASSUME THAT THE WORKPLACE IS ANY SAFER THAN THE REST OF THE WORLD IMPROVEMENTS TO FACILITIES INCLUDING IMPROVED LIGHTING CAN HELP SAYS GARRY MATHIASON A PARTNER AT LAW FIRM LITTLER MENDELSON IN SAN FRANCISCO WORK TRAUMA SERVICES A CONSULTING FIRM THERE SPECIALIZES IN ASSESSING POTENTIALLY VIOLENT EMPLOYEES SUCH WORKERS OFTEN SIGNAL THEIR INTENTIONS NOTES THE FIRM'S CHRIS HATCHER THE AEROSPACE BUST CREATES A BOOM OF SORTS FOR CALIFORNIA RESEARCHERS AT LEAST 10 MAJOR ANALYSES HAVE EXPLORED VARIOUS FACETS OF THE SUBJECT OVER THE LAST THREE YEARS LAST WEEK TWO SEPARATE UCLA DEPARTMENTS WEIGHED IN ONE FOCUSED ON THE IMMENSE DISPLACEMENT SINCE 1988 WITH ANNUAL WAGE LOSSES EXCEEDING 5 BILLION FOR THE 130000 JOBS LOST IN THE STATE ANOTHER POSITED AN ELECTRICVEHICLE INDUSTRY AS A WAY TO GET 24000 PEOPLE BACK TO WORK OTHER STUDIES THIS YEAR CAME FROM CALIFORNIA'S COMMISSION ON STATE FINANCE THE ECONOMIC ROUNDTABLE AND THE SANTA MONICA THINK TANK RAND CORP COLLECTIVELY MORE THAN 30 PEOPLE WORKED ON THE STUDIES WHICH GENERALLY REACHED SIMILAR CONCLUSIONS THEY PROPOSE RETRAINING LAIDOFF WORKERS AND CALL FOR GOVERNMENT HELP TO CONVERT DEFENSE WORK TO CIVILIAN PROJECTS YOU TEND TO FIND OUT THAT THE THINGS EVERYONE KEEPS NOTING ARE PROBABLY TRUE SAYS MICHAEL DARDIA COAUTHOR OF THE RAND STUDY DIVERSE WORK TEAMS LAGGED AT FIRST BUT LATER MATCHED OR OUTPERFORMED HOMOGENEOUS ONES IN A UNIVERSITY OF NORTH TEXAS EXPERIMENT MANAGEMENT STUDENTS WERE SPLIT INTO 17 ALLWHITE TEAMS AND 19 RACIALLY AND ETHNICALLY DIVERSE ONES DIVERSITY MAKES GOOD BUSINESS SENSE CONCLUDES UNIVERSITY OF OKLAHOMA PROF LARRY MICHAELSEN BUT IT TAKES A WHILE TO REALIZE THE GAINS MISLEADING PRECEDENTS ALTHOUGH THE NATIONAL LABOR RELATIONS BOARD STRUCK DOWN WORKERMANAGEMENT TEAMS AT DUPONT CO AND ELECTROMATION INC MOST COMPANIES AND UNIONS FAVOR SUCH PROGRAMS SAYS UNIVERSITY OF ILLINOIS PROF MICHAEL LEROY BUT IN A FORTHCOMING GEORGE WASHINGTON LAW REVIEW ARTICLE HE CITES A TROUBLE SIGN ABOUT 30 OF MANUFACTURING AND PUBLICSECTOR UNION MEMBERS SAY EMPLOYERS USE THE TEAMS DISHONESTLY PARTTIME WORKERS COULD BE BIG BENEFICIARIES OF THE NEW FAMILYLEAVE LAW CONSULTANT TOWERS PERRIN SAYS THAT 49 OF COMPANIES WILL HAVE TO START PROVIDING LEAVE FOR EMPLOYEES WHO WORK 1250 HOURS A YEAR OR ABOUT 25 HOURS A WEEK SOME 36 WILL HAVE TO OFFER ALL WORKERS MORE TIME OFF AND 31 WILL HAVE TO START PROVIDING HEALTH INSURANCE TO WORKERS WHO TAKE LEAVE WORKER EXPLOITATION IS ITS MODERN NAME INTERNSHIP USE OF UNPAID STUDENT INTERNS GROWS AS YOUTHS SEEK A WAY INTO THE TIGHT LABOR MARKET AND EMPLOYERS COPE WITH STAFF CUTS THE PRACTICE IS COMMON IN BROADCASTING THERE'S PLENTY OF PEOPLE WHO WILL DO IT FOR NOTHING SO WHY SHOULD EMPLOYERS PAY SAYS MICHELLE DURFEE AN UNPAID INTERN AT CNN LAST YEAR WHO NOW IS STATION MANAGER AT WCJTV IN MT CARMEL ILL BY LAW UNPAID INTERNS CAN'T DISPLACE REGULAR WORKERS OR DO WORK WHOSE VALUE TO THE EMPLOYER EXCEEDS SUPERVISION COSTS BUT THE STANDARD OFTEN IS INTERPRETED LOOSELY IN DALLAS THE FEDERAL TRADE COMMISSION PAYS ONE SUMMER LAW CLERK WHILE SEVEN OTHERS WORK PRO BONO CONCEDES REGIONAL DIRECTOR TOM CARTER THERE'S NO DIFFERENCE IN THE WORK BUT WE CAN'T AFFORD TO PAY THEM MANY COMPANIES ESPECIALLY TECHNICALLY ORIENTED ONES STILL PAY INTERNS WE BELIEVE IN BEING COMPETITIVE AND ATTRACTING THE UPPER TIER SAYS PATRICK DONAHUE SPOKESMAN FOR BRISTOL MYERSSQUIBB THE CHECKOFF SOME 12 OF AMERICANS LAST YEAR PASSED UP JOB OPPORTUNITIES BECAUSE OF CONSIDERATIONS INVOLVING HEALTH BENEFITS ACCORDING TO THE EMPLOYEE BENEFIT RESEARCH INSTITUTE PRISON OVERCROWDING PUSHES THE RATIO OF INMATES TO CORRECTIONS OFFICERS TO 52TO1 FROM 47TO1 THREE YEARS AGO REPORTS THE GOVERNMENT EMPLOYEES UNION AFSCME 9306150067 930615 LEISURE & ARTS BOOKSHELF REAL ROOTS OF HOMELESSNESS BY HEATHER MAC DONALD IN 1980 MITCH SNYDER OF THE COMMUNITY FOR CREATIVE NONVIOLENCE TESTIFIED BEFORE THE FIRST CONGRESSIONAL HEARING ON HOMELESSNESS SINCE THE GREAT DEPRESSION ON THE TABLE NEXT TO HIM WAS A BOX CONTAINING THE ASHES OF A HOMELESS MAN WHO HAD FROZEN TO DEATH THE PREVIOUS WINTER WITH SUCH GESTURES MR SNYDER AND HIS ALLIES IN THE ACTIVIST COMMUNITY SEIZED CONTROL OF THE NASCENT DEBATE OVER HOMELESSNESS THEY HAVE NOT LOOSED THEIR GRIP SINCE THE CONSEQUENCES ACCORDING TO ALICE S BAUM AND DONALD W BURNES IN THEIR COMPELLING BOOK A NATION IN DENIAL WESTVIEW PRESS 247 PAGES 4995 HARDBACK 1695 PAPER HAVE BEEN DISASTROUS SINCE 1980 THE US HAS SPENT BILLIONS TRYING TO SOLVE HOMELESSNESS WITHOUT ADDRESSING ITS REAL CAUSES HOMELESS ADVOCATES HAVE SUCCESSFULLY DEFINED HOMELESSNESS AS A PROBLEM OF HOUSING AND POVERTY THE LOGIC APPEARS SIMPLE ENOUGH WHAT THE HOMELESS NEED IS A HOME LOGICAL PERHAPS BUT NOT TRUE ACCORDING TO MS BAUM A SUBSTANCEABUSE COUNSELOR AND MR BURNES AN EDUCATOR WHAT THE HOMELESS NEED BEFORE ANYTHING ELSE IS TREATMENT FOR SUBSTANCE ABUSE AND MENTAL ILLNESS UP TO 83 OF THE HOMELESS ARE DRUG ADDICTED ALCOHOLIC MENTALLY ILL OR SOME COMBINATION OF THE THREE THE AUTHORS ARGUE PERSUASIVELY THAT THESE CONDITIONS LEAD TO A DISAFFILIATION FROM THE SOCIAL TIES THAT KEEP THE VAST MAJORITY OF POOR PEOPLE DOMICILED SIMPLY PROVIDING SHELTER TO PEOPLE UNABLE TO FUNCTION IN SOCIETY MAY BE AN ENORMOUS BOON TO THE NEW SHELTERIZATION INDUSTRY BUT IT DOES NOTHING TO HELP THE HOMELESS OVERCOME THE DISABILITIES THAT TRIGGER HOMELESSNESS HOMELESS ADVOCATES HAVE BEEN EAGER FOR US TO IGNORE THE EXTENSIVE DATA ON THE INCIDENCE OF SUBSTANCE ABUSE AND MENTAL ILLNESS AMONG THE HOMELESS THE MOST ENGAGING PART OF A NATION IN DENIAL IS ITS ACCOUNT OF HOW THE ACTIVIST COMMUNITY USED HOMELESSNESS TO BREATHE NEW LIFE INTO THE POLITICAL BATTLES OF THE 1960S BY THEIR OWN ADMISSION ACTIVISTS VIEWED THE RIGHT TO SHELTER AS THE OPENING WEDGE TO A RIGHT TO APPROPRIATE HOUSING OTHERS HAVE ARGUED FOR ESTABLISHING A MAXIMUM WAGE OR ABSOLUTE LIMITS ON INCOME AND A MINIMUM GUARANTEED INCOME FOR ALL THOUGH REAGANOMICS WAS THE ADVOCATES' MOST IMMEDIATE TARGET THEIR ULTIMATE GOAL WAS IN THE WORDS OF ONE ACTIVIST TO CHANGE THE FUNDAMENTAL CLASS NATURE OF US SOCIETY A NATION IN DENIAL REFUTES ALL OF THE POLITICALLY CORRECT EXPLANATIONS FOR HOMELESSNESS LACK OF HOUSING IN NEW YORK CITY 50 OF THE FAMILIES PLACED IN PERMANENT HOUSING RETURN TO THE SHELTER SYSTEM WASHINGTON DC REPORTS A SIMILAR RECIDIVISM RATE POVERTY THE HOMELESS OFTEN HAVE MORE RESOURCES THAN THE HOUSED POOR LARRY HOGUE A HOMELESS MENTALLY ILL CRACK ADDICT WHO TERRORIZED THE UPPER WEST SIDE OF NEW YORK CITY FOR SIX YEARS RECEIVED A 36000 ANNUAL GOVERNMENT PENSION ECONOMIC DOWNTURNS THE END OF THE RECESSION OF 19811982 DID NOT DECREASE HOMELESSNESS NOR DID THE FAR DEEPER RECESSION OF 1991 INCREASE IT CUTS IN GOVERNMENT BENEFITS CUTS IN FEDERAL HOUSING SUBSIDIES MADE IN THE EARLY REAGAN YEARS WOULD NOT HAVE KICKED IN UNTIL THE EARLY '90S THE COURTS AND CONGRESS RESTORED SUPPLEMENTAL SECURITY INCOME BENEFITS TO THEIR PREREAGAN LEVELS WITHOUT DECREASING HOMELESSNESS THE AUTHORS DO NOT DISMISS THE ROLE OF HOUSING AVAILABILITY AND UNEMPLOYMENT BUT ARGUE THAT TREATMENT FOR ADDICTION AND MENTAL ILLNESS IS A FAR MORE IMMEDIATE NEED DEBATE HAS RARELY BEEN JOINED ON THESE ISSUES HOWEVER BECAUSE THE DOMINANT MESSAGE OVER THE PAST DECADE HAS BEEN THAT THE HOMELESS ARE JUST LIKE YOU AND ME THERE HAS BEEN A VIRTUAL TABOO ON THE DISCUSSION OF DRUG ADDICTION ALCOHOLISM AND MENTAL ILLNESS AMONG STREET PEOPLE MS BAUM AND MR BURNES WRYLY RECOUNT TOM BROKAW'S PILGRIMAGE TO RURAL IOWA FOR AN NBC REPORT ON HOMELESS FAMILIES THOUGH NEW YORK HAS MORE THAN ITS SHARE OF HOMELESS SINGLE MOTHERS MANY CRACKADDICTED IT HAS VERY FEW OF THE WHITE TWOPARENT FAMILIES HIT BY RUST BELT RECESSION WHO ALLOWED MR BROKAW TO INTONE THAT THE HOMELESS ARE PEOPLE YOU KNOW THE ACTIVISTS' SECRET WEAPON IN THE DEBATE ON HOMELESSNESS IS AMERICA'S TERROR OF BLAMING THE VICTIM EVEN THE RESEARCH COMMUNITY HAS BEEN COWED INTO SUBMISSION ACCORDING TO A REPORT IN SCIENTIFIC AMERICAN RESEARCHERS WHO ADDRESSED THE BEHAVIORAL PROBLEMS OF THE HOMELESS WERE ACCUSED OF STIGMATIZING AN ALREADY DISENFRANCHISED POPULATION SOCIOLOGIST PETER ROSSI DESCRIBED THE TWO HOURS IN WHICH HE PRESENTED HIS STUDY OF CHICAGO'S HOMELESS TO THE ADVOCATE COMMUNITY AS THE LONGEST STRETCH OF PERSONAL ABUSE I HAVE SUFFERED SINCE BASIC TRAINING IN THE ARMY DURING WORLD WAR II THE POPULATION MOST AT RISK FOR HOMELESSNESS IS THE BABY BOOMERS A GENERATION THAT CELEBRATED TUNING IN TURNING ON AND DROPPING OUT JUST HOW FAR DOWN THAT DROP WAS IS NOW APPARENT THE CRASH PAD OF THE '60S HAS BECOME THE SHELTER OF THE '80S AND '90S MERE HONESTY ABOUT AND UNIVERSAL TREATMENT FOR ADDICTION AS RECOMMENDED BY MS BAUM AND MR BURNES WILL NEVER BE ADEQUATE TO REMOVE THE ACCUMULATING DETRITUS OF THE COUNTERCULTURE HOWEVER WITHOUT A RETURN TO THE VALUE OF INDIVIDUAL RESPONSIBILITY MS MAC DONALD WRITES ON SOCIAL ISSUES FOR CITY JOURNAL AND OTHER PUBLICATIONS 9306150066 930615 CHICAGO MERC SETS INTERBANK TRADERS' CURRENCY CONTRACTS BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE CHICAGO MERCANTILE EXCHANGE HOPING TO GRAB A SHARE OF THE 1 TRILLION IN FOREIGNCURRENCY TRADES THAT BANKS AND DEALERS EXECUTE EACH DAY IS STARTING A NEW KIND OF CURRENCY CONTRACT THE NEW INSTRUMENTS CALLED ROLLING SPOT CONTRACTS REPRESENT A RADICAL DEPARTURE FROM THE CHICAGO MERC'S NORMAL FARE OF FINANCIAL FUTURES CONTRACTS BASED ON INTEREST RATES STOCKS AND CURRENCIES AMONG FOREIGNEXCHANGE TRADERS THE MERC IS KNOWN FOR ITS CONVENTIONAL CURRENCY FUTURES WHICH ARE COMMITMENTS TO DELIVER CURRENCY AT TODAY'S EXCHANGE RATES ON A SPECIFIED DAY IN THE FUTURE THE NEW CONTRACTS ARE AIMED SPECIFICALLY AT THE BIG BANKS AND SECURITIES FIRMS THAT TRADE IN THE SOCALLED INTERBANK OR OFFEXCHANGE CURRENCY MARKET IN PART THE ROLLING SPOT CONTRACTS ARE INTENDED TO REDUCE THE RISKS AND HASSLES THAT BANKS INCUR DURING SETTLEMENT OF THEIR HUGE CURRENCY TRADES BANKS ARE EXPECTED TO TAKE DELIVERY OF THE CURRENCIES THEY BUY IN THE INTERBANK MARKET WITHIN TWO DAYS USING BROKERS THEY USUALLY ROLL THESE CURRENCY TRANSACTIONS OVER TO THE FOLLOWING BUSINESS DAY TO KEEP THE POSITIONS OPEN THE ROLLING PROCESS INVOLVES ELABORATE ACCOUNTING PROCEDURES AND CUMBERSOME DELIVERY OF BILLIONS OF DOLLARS OF CURRENCY THE MERC'S CONTRACTS ARE SUPPOSED TO OFFER BANKS AN ALTERNATIVE THAT TAKES THE PAIN OUT OF THIS PROCESS THE INSTRUMENTS WILL AUTOMATICALLY ROLL OVER TO THE NEXT BUSINESS DAY WITH NO DELIVERY OF CURRENCY OR EXTRA ACCOUNTING MOREOVER THE TRANSACTIONS WILL BE GUARANTEED BY THE MERC'S CLEARING HOUSE WHICH NOW GUARANTEES THE MERC'S CONVENTIONAL FUTURES TRADES SOME IN THE FOREIGN EXCHANGE AND BANKING INDUSTRIES ARE ENTHUSIASTIC ABOUT THE NEW PRODUCTS WHILE OTHERS ARE MORE SKEPTICAL A LOT OF REGIONAL BANKS ARE BLOCKED OUT OF THE INTERBANK MARKET SAID STEVEN GEOVANIS MANAGING DIRECTOR IN CHARGE OF FOREIGNEXCHANGE TRADING AT MERRILL LYNCH & CO YOU HAVE TO HAVE CREDIT LINES IN PLACE TO TRADE IN THE INTERBANK MARKET NOW REGARDLESS OF WHO YOU ARE YOU'LL HAVE ACCESS TO THIS MARKET THROUGH THE CHICAGO CONTRACTS EDWARD FURASH MANAGING PARTNER OF FURASH & CO A WASHINGTONBASED BANK CONSULTING FIRM SAYS IT WON'T BE CLEAR WHETHER THE CONTRACTS ARE USEFUL UNTIL AFTER THEY HAVE TRADED FOR A WHILE THIS MAY BE USEFUL AS A SUPPLEMENT TO THE INTERBANK MARKET BUT YOU NEVER KNOW WHAT A NEW DEVICE LIKE THIS IS REALLY GOING TO DO UNTIL PEOPLE START TO USE IT MR FURASH SAID WE'RE IN AN ERA WHERE CREATION OF COMPLICATED NEW FINANCIAL PRODUCTS IS WIDESPREAD AND WHERE THE CHARACTERISTICS OF THOSE PRODUCTS ARE HARD TO PREDICT IN ADVANCE TODAY THE MERC WILL LAUNCH THE FIRST OF ITS ROLLING SPOT CONTRACTS BASED ON BRITISH POUNDS THE MERC EXPECTS TO ADD CONTRACTS BASED ON SWISS FRANCS GERMAN MARKS JAPANESE YEN AND OTHER CURRENCIES SOON 9306150065 930615 FIRST REPUBLIC BANCORP STOCK SAN FRANCISCO FIRST REPUBLIC BANCORP SAID IT MAY REPURCHASE FROM TIME TO TIME AS MANY AS 200000 SHARES OF ITS COMMON THE FINANCIAL SERVICES COMPANY HAS 75 MILLION SHARES OUTSTANDING 9306150064 930615 FINANCING BUSINESS LIFE PARTNERS GROUPS INC LIFE PARTNERS GROUP INC DALLAS SAID IT COMPLETED REFINANCING OF ITS SENIOR TERM LOAN A MOVE THAT INITIALLY WILL SAVE THE LIFEINSURANCE CONCERN 1 MILLION IN INTEREST EXPENSE PER QUARTER THE COMPANY SAID IT REPLACED A 1578 MILLION FACILITY SET TO MATURE JUNE 1997 AND WHICH COMMANDED A RATE OF PRIME PLUS 15 PERCENTAGE POINTS WITH A 160 MILLION FACILITY MATURING SEPTEMBER 1999 THAT IS INITIALLY PRICED AT THE LONDON INTERBANK OFFERED RATE PLUS 175 PERCENTAGE POINTS AND WHICH HAS A STEPDOWN PROVISION TO A MINIMUM RATE OF LIBOR PLUS 125 PERCENTAGE POINTS 9306150063 930615 CRAY FINISHES PRIVATE PLACEMENT COLORADO SPRINGS COLO CRAY COMPUTER CORP SAID IT COMPLETED THE SALE OF 299 MILLION OF UNREGISTERED COMMON SHARES IN A PRIVATE PLACEMENT TO INSTITUTIONAL INVESTORS AND TO COMPANY FOUNDER SEYMOUR R CRAY THE COMPUTER MAKER SAID PROCEEDS WILL PROVIDE WORKING CAPITAL FOR MANUFACTURE AND MARKETING OF THE CRAY3 SUPERCOMPUTER THE INVESTMENT IS EXPECTED TO PROVIDE OPERATING FUNDS UNTIL AT LEAST JUNE 1994 MR CRAY CHAIRMAN AND CHIEF EXECUTIVE BOUGHT 18 MILLION SHARES AT 275 APIECE WHILE UNNAMED INSTITUTIONAL INVESTORS BOUGHT 111 MILLION SHARES AT 225 APIECE THE COMPANY SAID IT WILL BEGIN REGISTERING THE SHARES WITH THE SECURITIES AND EXCHANGE COMMISSION WITHIN 60 DAYS IN OVERTHECOUNTER COMPOSITE TRADING YESTERDAY CRAY CLOSED AT 3625 UP 1875 CENTS 9306150062 930615 USMX JOINS MINING VENTURE DENVER USMX INC SAID IT AND TWO PRIVATE ENTITIES HAVE FORMED SOUTHERN GOLD RESOURCES INC USMX HOLDS SLIGHTLY MORE THAN 50 OF THE EQUITY OF THE COMPANY WHICH IN TURN HOLDS THE EXCLUSIVE EXPLORATION PERMIT ON THE CALA ABAJO COPPERGOLD DEPOSIT IN WESTCENTRAL PUERTO RICO USMX SAID IT WILL PAY FOR FURTHER EXPLORATION AND METALLURGICAL STUDIES ON THE PROPERTY IN RETURN FOR A LARGER STAKE IN SOUTHERN GOLD A 1967 FEASIBILITY STUDY BY AMAX INC DELINEATED A COPPER RESERVE OF ABOUT 70 MILLION TONS OF 083 COPPER AND 001 OUNCES OF GOLD PER TON EARLIER PROPOSALS RAN INTO OPPOSITION ON ENVIRONMENTAL GROUNDS BUT SOUTHERN GOLD IS PROPOSING USING DIFFERENT TECHNOLOGICAL PROCESSES TO MINE AND RECOVER THE MINERALS 9306150061 930615 WHO'S NEWS BARRISTER INFORMATION SYSTEMS CORP BARRISTER INFORMATION SYSTEMS CORP BUFFALO NY WARREN E EMBLIDGE JR 50 YEARS OLD WAS NAMED A DIRECTOR OF THIS COMPUTER HARDWARE AND SOFTWARE CONCERN EXPANDING THE BOARD TO SEVEN MEMBERS MR EMBLIDGE IS PRESIDENT OF SJ MCCULLAGH INC AN COFFEE IMPORTER ROASTER AND DISTRIBUTOR PRESIDENT OF JUICEABLES INC A DISTRIBUTOR OF CONCENTRATED JUICES AND CHAIRMAN OF GR8 NUTRITION INC A PRODUCER OF SPECIALTY FOODS ALL ARE BASED IN BUFFALO 9306150059 930615 WHO'S NEWS FORD MOTOR CO FORD MOTOR CO DEARBORN MICH JOHN A HALL 55 YEARS OLD WAS NAMED VICE PRESIDENT OF EMPLOYEE RELATIONS MR HALL WHO WAS PREVIOUSLY EXECUTIVE DIRECTOR OF LABOR RELATIONS AND EMPLOYEE DEVELOPMENT SUCCEEDS J CRAIG HAUSMAN 62 WHO IS RETIRING AT THE END OF THIS YEAR AFTER 40 YEARS WITH THE COMPANY MR HALL JOINED FORD IN 1965 AS PART OF THE INDUSTRIAL RELATIONS STAFF OF THE AUTO MAKER'S STEEL DIVISION 9306150058 930615 POLITICS & POLICY STUDY GROUP SAYS AN INDEPENDENT FAA MIGHT PROVE TO BE MORE EFFECTIVE AGENCY BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A NATIONAL AIRLINE COMMISSION STUDY GROUP SUGGESTED THAT THE FEDERAL AVIATION ADMINISTRATION WOULD BE MORE EFFECTIVE IF IT OPERATED INDEPENDENTLY MUCH LIKE THE FEDERAL RESERVE BOARD THE FAA WHICH RUNS THE AIR TRAFFIC CONTROL SYSTEM AND CERTIFIES AIRPLANES AND PARTS CURRENTLY RELIES ON CONGRESS AND THE TRANSPORTATION DEPARTMENT FOR FUNDING SOME CRITICS HOWEVER BELIEVE SUCH BUDGET RESTRICTIONS HAMPER THE FAA AND ONLY ENCOURAGE THE TRANSPORTATION DEPARTMENT TO MICROMANAGE THE AGENCY UNTIL 1987 THE FAA NEEDED DEPARTMENT APPROVAL FOR ALL CONTRACTS OVER 500000 WE WERE STRUCK BY THE RECURRENCE OF PROBLEMS WHICH HAVE TO DO WITH THE WAY THE FAA IS STRUCTURED SAID DANIEL KASPER A MEMBER OF THE COMMISSION WHICH WAS APPOINTED BY PRESIDENT CLINTON AND CONGRESS TO MAKE RECOMMENDATIONS ON HOW TO BOLSTER THE AIRLINE INDUSTRY WHICH LOST 10 BILLION OVER THE PAST THREE YEARS IN INITIAL REPORTS COMMISSION MEMBERS SAID THE FAA BURDENS THE AIRLINE INDUSTRY WITH UNNECESSARY REGULATIONS BECAUSE THE AGENCY DOESN'T BEAR THE COSTS OF THE REGULATIONS THE AIRLINES DO THE COMMISSION ALSO FOUND THAT AIR TRAFFIC DELAYS COST AIRLINES 3 BILLION ANNUALLY BUT BY PRIVATIZING SOME OR ALL OF THE FAA'S FUNCTIONS THE GROUP SUGGESTS THE FAA WOULD HAVE THE AUTHORITY AND FINANCIAL INCENTIVE TO PROCURE HIGHTECH AIR TRAFFIC CONTROL SYSTEMS AND REGULATE THE AIRLINES MORE EFFICIENTLY A SEPARATE COMMISSION GROUP THAT IS LOOKING SOLELY AT DOMESTIC AIRLINES ECHOED THE NEED FOR RESTRUCTURING IT SAID TAX RELIEF FOR THE INDUSTRY SHOULD BE A HIGH PRIORITY THE FAA STUDY GROUP POINTED TO THE FEDERAL RESERVE BOARD AS A POSSIBLE MODEL FOR A REVAMPED FAA BECAUSE IT PERFORMS REGULATORY FUNCTIONS YET MAINTAINS PRIVATE FUNDING LIKE THE FED ACCORDING TO THE STUDY GROUP A QUASIINDEPENDENT FAA WOULD HAVE GREATER ACCESS TO CAPITAL MARKETS WHICH WOULD REDUCE COSTS BORNE DIRECTLY BY THE AIRLINES AND WEAN THE FAA FROM ITS RELIANCE ON CONGRESSIONAL APPROPRIATIONS SOME INDUSTRY EXPERTS HOWEVER ARGUE THAT MAKING THE FAA INDEPENDENT IS A MISTAKE BECAUSE IT WOULD FREE THE AGENCY FROM ACCOUNTABILITY FORMER TRANSPORTATION SECRETARY SAMUEL SKINNER SAID THAT INDEPENDENT ORGANIZATIONS DO NOT COMPETE WELL FOR RESOURCES AND THAT THE FAA'S PROBLEM IS RESOURCES THE IDEA OF SPINNING OFF THE AGENCY ISN'T NEW IN 1988 SEN WENDELL FORD SUPPORTED LEGISLATION THAT WOULD MAKE THE AGENCY INDEPENDENT BUT THE IDEA DIED BEFORE MAKING IT TO THE FLOOR OF THE SENATE AN AIDE TO THE KENTUCKY DEMOCRAT SAID THE CHANCES NOW FOR SUCCESSFUL LEGISLATION ARE SLIM AND NONE INDEED REP JAMES OBERSTAR D MINN HOUSE AVIATION SUBCOMMITTEE CHAIRMAN LAST WEEK TOLD THE COMMISSION THAT THE MAIN SOLUTIONS TO THE AIRLINE INDUSTRY'S FINANCIAL DIFFICULTIES MUST BE ECONOMIC AND MANAGERIAL RATHER THAN LEGISLATIVE MEANWHILE THE FAA WHICH HAS SAID IT WILL CONSIDER THE COMMISSION'S PROPOSALS ISN'T PUSHING FOR INDEPENDENCE THE AGENCY CONTENDS THAT IT HAD BEEN MAKING STEADY IMPROVEMENTS IN RECENT YEARS REGARDLESS COMMISSION MEMBERS WHO WILL FORMALLY ANNOUNCE THEIR RECOMMENDATIONS IN MIDAUGUST ARE OPTIMISTIC THAT CONGRESS WILL CONSIDER ITS PROPOSALS IN THE WORDS OF ONE PANEL MEMBER THE COMMISSION IS THEIR BABY 9306150057 930615 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED JUNE 11 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER CHARLES TOWN WVA WILL REDEEM ON JULY 1 1993 THE FOLLOWING RESIDENTIAL MORTGAGE REVENUE BONDS 1979 SERIES A DUE JULY 1 OF THE INDICATED YEARS 68 DUE 1994 69 DUE 1995 695 DUE 1996 7 DUE 1997 705 DUE 1998 71 DUE 1999 AND 7375 DUE 2012 THIS IS AN OPTIONAL REDEMPTION MARYLAND NATIONAL BANK BALTIMORE IS TRUSTEE ESCAMBIA COUNTY FLA WILL REDEEM ON JULY 12 1993 ITS POLLUTION CONTROL REVENUE BONDS SERIES A DUE MAY 1 2006 FIRST UNION NATIONAL BANK OF FLORIDA CHALOTTE NC IS TRUSTEE GREENCASTLE HOUSING INC WILL REDEEM ON JULY 1 1993 15000 PRINCIPAL AMOUNT OF ITS 9625 MORTGAGE REVENUE BONDS SERIES 1980 DUE JULY 1 2000 BANK ONE INDIANAPOLIS IS TRUSTEE HEART OF TEXAS HOUSING FINANCE CORP WILL REDEEM ON JULY 1 1993 1330000 PRINCIPAL AMOUNT OF THE FOLLOWING SINGLE FAMILY MORTGAGE REVENUE BONDS SERIES 1984 10 DUE JAN 1 AND JULY 1 1994 1015 DUE JAN 1 1995 103 DUE JAN 1 1996 1045 DUE JAN 1 1997 106 DUE JAN 1 1998 1075 DUE JAN 1 1999 11 DUE JAN 1 2011 AND COMPOUND INTEREST BONDS DUE JULY 1 19952003 AMERITRUST TEXAS IS TRUSTEE MARYLAND HEALTH & HIGHER EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON JULY 1 1993 THE FOLLOWING BONDS DUE JULY 1 OF THE INDICATED YEARS SERIES A REVENUE BONDS 400000 PRINCIPAL AMOUNT OF 66 BONDS DUE 2007 305000 PRINCIPAL AMOUNT OF 69 BONDS DUE 2000 505000 PRINCIPAL AMOUNT OF 675 BONDS DUE 1999 415000 PRINCIPAL AMOUNT OF 7625 BONDS DUE 1998 GROSS REVENUE BONDS 840000 PRINCIPAL AMOUNT OF 57 SERIES A BONDS DUE 2003 MARYLAND NATIONAL BANK BALTIMORE MD IS TRUSTEE FOR THE ABOVE REDEMPTIONS THE AUTHORITY WILL ALSO REDEEM ON JULY 1 10390000 PRINCIPAL AMOUNT OF 825 85 AND 9875 SERIES 1983 REVENUE BONDS DUE 1994 1995 AND 2002 RESPECTIVELY FIRST MORTGAGE REFUNDING REVENUE BONDS 710000 PRINCIPAL AMOUNT OF 69 SERIES 1989 BONDS DUE 1994 REVENUE REFUNDING BONDS 89 95 AND 975 SERIES 1983 BONDS DUE 1994 2003 AND 2012 RESPECTIVELY MERCANTILESAFE DEPOSIT & TRUST CO BALTIMORE MD IS TRUSTEE FOR THE REMAINDER OF THE REDEMPTIONS NEW JERSEY ECONOMIC DEVELOPMENT AUTHORITY WILL REDEEM ON JULY 15 1993 100000 PRINCIPAL AMOUNT OF ITS 8 7/8 ECONOMIC DEVELOPMENT SENIOR REVENUE BONDS DUE JAN 15 2020 MIDLANTIC NATIONAL BANK ISELIN NJ IS TRUSTEE NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY WILL REDEEM ON JULY 1 1993 THE FOLLOWING BONDS 95 SERIES B REVENUE BONDS DUE JULY 1 1998 975 SERIES B REVENUE BONDS DUE JULY 1 2012 AND 9375 SERIES A BONDS DUE JULY 1 2013 NEW JERSEY NATIONAL BANK PHILADELPHIA PA IS TRUSTEE AND ESCROW AGENT NORTHERN CALIFORNIA POWER AGENCY WILL REDEEM ON JULY 1 1993 THE FOLLOWING REVENUE BONDS DUE JULY 1 OF THE INDICATED YEARS 1983 SERIES A DUE 2000 2002 AND 2009 AND 115 BONDS 1984 SERIES A DUE 2010 CITIBANK NEW YORK IS TRUSTEE PUERTO RICO ELECTRIC POWER AUTHORITY WILL REDEEM ON JULY 1 1993 THE FOLLOWING POWER REVENUE BONDS SERIES H DUE JULY 1 OF THE INDICATED YEARS 11 DUE 1995 11 3/4 DUE 2002 AND 12 DUE 2007 CITIBANK NEW YORK IS TRUSTEE PUERTO RICO HIGHWAY AUTHORITY WILL REDEEM ON JULY 1 1993 THE FOLLOWING HIGHWAY REVENUE BONDS DUE JULY 1 OF THE INDICATED YEARS 525 SERIES A DUE 1998 59 SERIES F DUE 2002 6 SERIES E DUE 2002 675 SERIES D DUE 2001 7 SERIES B AND L DUE 1998 AND 2007 RESPECTIVELY AND 10 5/8 SERIES M DUE 2003 CHASE MANHATTAN BANK NEW YORK IS FISCAL AGENT FACILITIES FINANCING AUTHORITY WILL REDEEM ON JULY 1 1993 ITS 63 AND 6625 POLLUTION CONTROL REVENUE BONDS 1978 SERIES A DUE JUNE 1 1998 AND JUNE 1 2008 RESPECTIVELY BANCO POPULAR DE PUERTO RICO SAN JUAN PUERTO RICO IS TRUSTEE PUERTO RICO INDUSTRIAL DEVELOPMENT CO WILL REDEEM ON JULY 1 1993 2150000 PRINCIPAL AMOUNT OF ITS 6 REFUNDING AND GENERAL PURPOSE REVENUE BONDS SERIES 1973 DUE JULY 1 1998 AND IT WILL ALSO REDEEM ITS SERIES 1983 GENERAL PURPOSE REVENUE BONDS DUE JULY 1 1998 CITIBANK NEW YORK IS TRUSTEE ST MARY'S COUNTY WILL REDEEM ON JULY 1 1993 13170000 PRINCIPAL AMOUNT OF THE FOLLOWING REFUNDING BONDS DUE JULY 1 OF THE INDICATED YEARS 88 DUE 1994 9 DUE 1995 92 DUE 1996 93 DUE 1997 94 DUE 1998 95 DUE 1999 96 DUE 2000 97 DUE 2001 AND 975 DUE 20022006 MARYLAND NATIONAL BANK BALTIMORE IS TRUSTEE TOOMBS COUNTY GA HOSPITAL AUTHORITY WILL REDEEM ON JULY 1 1993 515000 PRINCIPAL AMOUNT OF ITS 1075 REVENUE BONDS DUE JULY 1 1994 FIRST UNION NATIONAL BANK OF GEORGIA CHARLOTTE NC IS TRUSTEE VIRGINIA HOUSING DEVELOPMENT AUTHORITY WILL REDEEM ON JULY 1 1993 THE FOLLOWING MULTIFAMILY HOUSING BONDS 1979 SERIES A DUE NOV 1 OF THE INDICATED YEARS 64 DUE 1993 65 DUE 1994 66 DUE 1995 67 DUE 1996 68 DUE 1997 69 DUE 1998 71 DUE 2004 AND 72 DUE 2022 THIS IS AN OPTIONAL REDEMPTION SIGNET TRUST CO RICHMOND VA IS TRUSTEE WASHINGTON PUBLIC POWER SUPPLY SYSTEM WILL REDEEM ON JULY 1 1993 THE FOLLOWING REVENUE BONDS DUE JULY 1 2017 1976 SERIES A 1978 SERIES B AND SERIES 1979 MORGAN GUARANTY TRUST CO OF NEW YORK IS BOND FUND TRUSTEE 9306150056 930615 LAW LEGAL BEAT FREQUENT FLIERS SEEKING REDRESS CARRY ON SUITS BY EDWARD FELSENTHAL STAFF REPORTER OF THE WALL STREET JOURNAL FREQUENT FLIERS ARE BECOMING FREQUENT LITIGANTS AS MORE TRAVELERS ASK COURTS TO ASSESS THEIR RIGHTS UNDER THE AIRLINES' POPULAR INCENTIVE PROGRAMS OUTSIDE OF COURT TOO LAWYERS ARE GRAPPLING WITH SUCH UNRESOLVED LEGAL QUESTIONS AS HOW TO VALUE FREQUENTFLIER MILES AND WHETHER AIRLINES CAN RETROACTIVELY LIMIT THEIR USE FREQUENTFLIER PROGRAMS HAVE CONTRIBUTED MANY MILLIONS OF DOLLARS INTO THE POCKETS OF LAWYERS SAYS RANDY PETERSEN EDITOR OF INSIDE FLYER A TRADE PUBLICATION IN ALL TRAVELERS HAVE STOCKPILED AS MANY AS 12 TRILLION MILES SINCE THE PROGRAMS BEGAN IN THE EARLY 1980S THAT VOLUME ALONG WITH THE FACT THAT CONSUMERS NOW CAN ACCUMULATE MILES THROUGH NONAIRLINE PURCHASES AND USE THEM TO BUY GOODS OTHER THAN AIRLINE SEATS HAS TURNED FREQUENTFLIER MILES INTO A COMMON CURRENCY BUT UNLIKE OTHER CURRENCIES THERE IS LITTLE CONSENSUS OVER HOW MUCH A FREQUENTFLIER MILE CAN BUY AND WHO CONTROLS ITS USE THE AMBIGUITY HAS SPAWNED DISPUTES IN A WIDE RANGE OF CASES FROM DIVORCES AND BANKRUPTCY PROCEEDINGS TO INCOMETAX ENFORCEMENT IN A LOS ALAMOS NM DIVORCE CASE A COUPLE HAVE BATTLED FOR EIGHT YEARS OVER HOW TO VALUE AND TRANSFER THE HUSBAND'S MORE THAN 300000 FREQUENTFLIER MILES IT WAS PROBABLY THE BIGGEST ASSET IN THE WHOLE ESTATE SAYS STEVEN TUCKER A LAWYER FOR THE HUSBAND ARNOLD HAKKILA INDEED A 1991 STATE APPEALSCOURT OPINION ON THE CASE OBSERVED THAT ONLY TWO ISSUES RELATING TO THE DISSOLUTION OF MARRIAGE OCCUPIED SIGNIFICANT ATTENTION AT TRIAL ALIMONY AND HUSBAND'S FREQUENT FLIER PROGRAM BONUS POINTS THE DIVORCE HAS BEEN GRANTED BUT THE DISPUTE OVER THE MILES STILL HASN'T BEEN SETTLED RATHER THAN PUT A CASH VALUE ON THE MILES THE JUDGE IN THE DIVORCE TRIAL ADOPTED THE HUSBAND'S SUGGESTION THAT THE MILES SIMPLY BE DIVIDED BUT MR TUCKER SAYS TRANS WORLD AIRLINES WITH WHICH MR HAKKILA HAD MOST OF HIS MILES WOULDN'T AGREE TO TRANSFER THE MILES SO LAST MONTH THE JUDGE ORDERED THAT A HEARING BE HELD TO DETERMINE THE VALUE OF THE MILES AND GIVE THE EXWIFE HER SHARE IN CASH IN THE NEW MEXICO CASE IN FACT THE EXWIFE ALLEGES THAT MR HAKKILA'S GIRLFRIENDS AND THEIR CHILDREN FLEW ALL OVER THE COUNTRY USING HIS MILEAGE BUT MR TUCKER SAYS HIS CLIENT TRAVELED WITH ONLY ONE WOMAN WHOM HE HAS SINCE MARRIED AND DIDN'T USE FREQUENTFLIER MILES TO PAY FOR HER TICKETS LITIGATION IS ALSO HEATING UP OVER AIRLINES' EFFORTS TO IMPOSE RESTRICTIONS ON FREE TICKETS GILBERT GORDON A CHICAGO LAWYER HAS FILED A CLASSACTION SUIT AGAINST AMR CORP'S AMERICAN AIRLINES CONTENDING THAT THE AIRLINE ILLEGALLY MADE RETROACTIVE CHANGES IN THE PROGRAM AND SEEKING DAMAGES FOR NINE MILLION FREQUENT FLIERS THEY HAVE DIMINISHED THE VALUE OF EACH MILE SAYS MR GORDON THEY DON'T HAVE THE RIGHT TO DO THAT AFTER THE PEOPLE HAVE FLOWN AND CONCLUDED THEIR PART OF THE DEAL A SIMILAR CASE BROUGHT ON BEHALF OF FOUR MILLION TRAVELERS IS PENDING AGAINST DELTA AIR LINES A SPOKESMAN FOR AMERICAN SAYS THE PROGRAM RULES CLEARLY STATE THAT WE HAVE THE RIGHT TO CHANGE THE RULES OF THE PROGRAM AS LONG AS MEMBERS ARE GIVEN REASONABLE NOTICE A SPOKESWOMAN FOR DELTA SAYS THE AIRLINE DOESN'T COMMENT ON PENDING LITIGATION AFTER YEARS OF DITHERING OVER HOW TO TAX EMPLOYEES WHO ADD MILES TO THEIR PERSONAL ACCOUNTS THROUGH BUSINESS TRAVEL THE INTERNAL REVENUE SERVICE HAS ENTERED THE FRAY AS WELL THE IRS HAS ALWAYS CONTENDED THAT IN THEORY SUCH MILEAGE IS TAXABLE INCOME TO THE EMPLOYEE BUT IT HADN'T ENFORCED THE POLICY EARLIER THIS YEAR HOWEVER AN IRS AGENT WHO WAS AUDITING EMPLOYEES OF A CENTRAL FLORIDA COMPANY SLAPPED THEM WITH TAX BILLS FOR FREQUENTFLIER CERTIFICATES ISSUED IN 1990 AND 1991 THE IRS WON'T COMMENT ON SPECIFIC CASES BUT GAIL ELLIS AN IRS SPOKESWOMAN SAYS THE AGENCY HASN'T ALTERED ITS POLICY IF FREQUENTFLIER MILES SHOULD COME UP UNDER A ROUTINE AUDIT THEN IT'S SOMETHING THAT WE WOULD LOOK AT BUT IT ISN'T AN ISSUE THAT WE'RE PURSUING JUST BY ITSELF SHE SAYS MEANWHILE BIG FREQUENTFLIER ACCOUNTS ALSO HAVEN'T ESCAPED THE SCRUTINY OF CREDITORS AND TRUSTEES IN BANKRUPTCY CASES IN THE BANKRUPTCY PROCEEDINGS OF AN AMERICAN AIRLINES FREQUENT FLIER THE COURT WAS ASKED TO USE THE TRAVELER'S MILEAGE TO FLY WITNESSES AND COURTAPPOINTED ATTORNEYS TO HEARINGS IN MARCH THE JUDGE GRANTED THE REQUEST AFTER ASKING FOR THE POSITION OF THE AIRLINE WHICH SAID IT DIDN'T OBJECT AS LONG AS THE PROGRAM'S RULES WERE FOLLOWED VENTURING FORTH PITTSBURGH LAW FIRM REED SMITH SHAW & MCCLAY FORMED INTERNATIONAL MERCHANT FINANCE LTD A VENTURE TO STRUCTURE FINANCIAL TRANSACTIONS RELATED TO TRADE AND EXPORTS MARK A NORTON A FORMER SENIOR VICE PRESIDENT AND MANAGER OF EXPORT FINANCE AT ABN AMRO BANK NV THE NETHERLANDS IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THE PARTNERSHIP WHICH IS BASED IN PITTSBURGH 9306150055 930615 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 ANNTAYLOR STORES CORP 110 MILLION OF SUBORDINATED NOTES DUE JUNE 15 2000 PRICED AT PAR TO YIELD 875 ACCORDING TO MCM CORPORATEWATCH THE SIZE OF THE OFFERING WAS RAISED FROM A PREVIOUSLY PLANNED 100 MILLION NONCALLABLE FOR FIVE YEARS THE ISSUE WAS PRICED AT A SPREAD OF 321 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH MERRILL LYNCH & CO ASSOCIATES CORP 300 MILLION OF NOTES DUE JUNE 15 2000 PRICED AS 6S AT 9935 TO YIELD 6116 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 055 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO ASSOCIATES IS A UNIT OF FORD MOTOR CO BANKAMERICA CORP 100 MILLION OF MEDIUMTERM NOTES DUE JUNE 1 1996 PRICED AT PAR TO YIELD 5 INITIALLY ACCORDING TO MCM CORPORATEWATCH THE NOTES WILL BE REOFFERED AT VARIOUS PRICES THROUGH DONALDSON LUFKIN & JENRETTE SECURITIES CORP THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 05 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P CHEMICAL BANKING CORP 150 MILLION OF SUBORDINATE FLOATINGRATE NOTES DUE JUNE 15 2000 PRICED INITIALLY AT 998624 TO YIELD A SPREAD OF 042 PERCENTAGE POINT ABOVE THE THREEMONTH LONDON INTERBANK OFFERED RATE ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS WILL FLOAT AT A SPREAD OF 04 PERCENTAGE POINT ABOVE THREEMONTH LIBOR RATED BAA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC CHRYSLER FINANCIAL CORP 250 MILLION OF NOTES DUE JUNE 15 1998 PRICED AS 65 AT 99822 TO YIELD 6542 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 137 PERCENTAGE POINTS ABOVE THE TREASURY FIVEYEAR NOTE RATED BA1 BY MOODY'S AND DOUBLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CHRYSLER FINANCIAL IS A UNIT OF CHRYSLER CORP FOOD LION INC 115 MILLION PRINCIPAL AMOUNT OF 5 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2003 THE COMPANY SAID THE DEBENTURES ARE CONVERTIBLE INTO CLASS A NONVOTING COMMON SHARES ON AND AFTER SEPT 13 AT AN INITIAL CONVERSION PRICE OF 790 FOOD LION SAID IT INTENDS TO USE THE NET PROCEEDS FROM THE SALE OF THE DEBENTURES TO FUND IN PART ITS 1993 CAPITAL EXPENDITURES PRIMARILY FOR THE CONSTRUCTION AND EQUIPPING OF NEW STORES AND THE REMODELING AND EXPANSION OF EXISTING STORES THE COMPANY SAID THE DEBENTURES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION AND MAY NOT BE OFFERED OR SOLD WITHIN THE UNITED STATES OR TO US PERSONS EXCEPT PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS THE SECURITIES ACT FOOD LION IS 503OWNED BY BELGIUM'S DELHAIZE FRERES & CO LE LION SA GENERAL MOTORS CORP 300 MILLION OF NOTES DUE JUNE 15 2003 PRICED AS 7S AT 99411 TO YIELD 7083 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 112 PERCENTAGE POINTS ABOVE THE TREASURY 10YEAR NOTE RATED BAA1 BY MOODY'S AND TRIPLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC SUNCLIPSE INC 125 MILLION OF GUARANTEED NOTES DUE JUNE 15 2003 PRICED AS 675S AT 99454 TO YIELD 6826 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 088 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE NOTES WILL BE GUARANTEED BY THE BORROWER'S PARENT AMCOR LTD RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO TWINPAK INC 75 MILLION OF GUARANTEED NOTES DUE JUNE 15 2000 PRICED AS 6375S AT 99715 TO YIELD 6426 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 085 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE NOTES WILL BE GUARANTEED BY THE BORROWER'S PARENT AMCOR LTD RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO US HOME CORP 200 MILLION OF SENIOR NOTES DUE JUNE 15 2003 PRICED AT PAR TO YIELD 975 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED SINGLEB1 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH DILLON READ & CO TOM BROWN INC 52 MILLION COMMON SHARES PRICED AT 12 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC CITICORP US 150 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE JUNE 28 2005 AT ISSUE PRICE PAR VIA KIDDER PEABODY INTERNATIONAL INTEREST FLOATS AT 0125 POINT BELOW SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO MINIMUM 6 MAXIMUM 10 FEES 0625 POINT COUNCIL OF EUROPE RESETTLEMENT FUND SUPRANATIONAL 250 MILLION MARKS OF 625 EUROBONDS DUE JAN 11 1996 AT ISSUE PRICE 1015 VIA BERLINER HANDELS UNDFRANKFURTER BANK AG FEES NOT DISCLOSED GENERAL MOTORS ACCEPTANCE CORP US PARENT 300 MILLION OF 625 EUROBONDS DUE JULY 8 1998 AT ISSUE PRICE 101012 VIA MORGAN STANLEY INTERNATIONAL REOFFER 99512 TO YIELD 637 105 BASIS POINTS ABOVE COMPARABLE TREASURY FEES 1875 POINTS ROYAL PAKHOED NV NETHERLANDS 150 MILLION GUILDERS OF 7125 EUROBONDS DUE JULY 15 2003 AT ISSUE PRICE 1004 VIA ABN AMRO BANK NV REOFFERED AT 9975 TO YIELD 716 MARGIN 57 BASIS POINTS ABOVE 65 DUTCH STATE LOAN DUE IN 2003 FEES ONE POINT 9306150054 930615 INTERNATIONAL USING ULTIMATUM PRITZKERS TRY TO RECOVER FROM HOTEL MISSTEP BY WALL STREET JOURNAL REPORTERS CRAIG S SMITH IN HONG KONG AND S KARENE WITCHER IN SYDNEY AUSTRALIA THE CHICAGOBASED PRITZKER FAMILY OWNER OF THE HYATT HOTEL CHAIN IS CLOSE TO REPAIRING THE DAMAGE FROM AN UNCHARACTERISTIC MISSTEP ITS MULTIMILLIONDOLLAR INVESTMENT IN SOUTHERN PACIFIC HOTEL CORP ASIA'S LARGEST HOTEL CHAIN SINCE LAST YEAR PRITZKER REPRESENTATIVES HAVE ASKED A HALFDOZEN OWNERS OF HOTELS IN THE MOSTLY AUSTRALIAN CHAIN TO RENEGOTIATE SOUTHERN PACIFIC'S MANAGEMENT CONTRACTS AND FORFEIT THE PERFORMANCE GUARANTEES NEGOTIATED BEFORE THE FAMILY TOOK CONTROL OF THE COMPANY THOSE GUARANTEES ENSURE THAT HOTEL OWNERS GET A CERTAIN LEVEL OF PROFIT FROM SOUTHERN PACIFIC EVEN IF ACTUAL PERFORMANCE FALLS SHORT AND AUSTRALIAN HOTELS HAVE BEEN SEVERELY DEPRESSED BY THREE YEARS OF RECESSION THE PRITZKERS CAME WITH A PERSUASIVE ULTIMATUM THEY WILL TAKE SOUTHERN PACIFIC INTO RECEIVERSHIP IF THE OWNERS DON'T GO ALONG MOST OF THE HOTEL OWNERS INVOLVED THOSE WITH THE MOST LUCRATIVE GUARANTEES HAVE TENTATIVELY AGREED TO RELINQUISH THEM BUT MANY BANKS BACKING THE OWNERS HAVE YET TO APPROVE THE DEAL WAITING QUIETLY IN THE WINGS IS SOUTHERN PACIFIC'S OWN BANKER HONGKONG & SHANGHAI BANKING CORP TO WHICH THE HOTEL COMPANY OWES 88 MILLION AUSTRALIAN DOLLARS US597 MILLION THE BANK A UNIT OF HSBC HOLDINGS PLC DECLINED TO COMMENT ANY ONE OF THE BANKS OR THE HALFDOZEN OWNERS WITH WHICH SOUTHERN PACIFIC IS NEGOTIATING COULD REFUSE TO GO ALONG BUT EVERYONE WOULD LOSE IF THE COMPANY IS TURNED OVER TO A RECEIVER PRITZKER INSIDERS INSIST THE FAMILY ISN'T BLUFFING WHILE THE DEBACLE IS AN EMBARRASSING MISCUE FOR A FAMILY REGARDED AS SAVVY DEAL MAKERS THE PRITZKERS AREN'T ABOVE LETTING A LOSING COMPANY FAIL IN 1984 THEY BROUGHT BRANIFF INC OUT OF BANKRUPTCY ONLY TO BAIL OUT FOUR YEARS LATER AFTER FAILING TO TURN THE AIRLINE AROUND BRANIFF WAS SUBSEQUENTLY LIQUIDATED KNOWN MAINLY FOR ITS HOTEL INVESTMENTS THE PRITZKER FAMILY HEADED BY BROTHERS JAY AND ROBERT HAS HOLDINGS IN A HOST OF OTHER INDUSTRIES AS WELL RANGING FROM RAILROAD TANKCARS TO CHEWING TOBACCO THE PRITZKERS HAVE INVESTED NEARLY A300 MILLION IN THE CHAIN NONE OF WHICH IS LIKELY TO BE RECOVERED IF SOUTHERN PACIFIC FAILS BECAUSE THE COMPANY'S MAIN ASSETS ARE MANAGEMENT CONTRACTS THAT COULD BE TERMINATED IF SOUTHERN PACIFIC WENT INTO RECEIVERSHIP HONGKONG BANK MIGHT GET VERY LITTLE BACK AS WELL THE HOTEL OWNERS COULD BE STUCK WITH EMPTY BUILDINGS FOR WHICH THEY WOULD HAVE TO FIND NEW OPERATORS AT A TIME WHEN MANY HOTELS ARE ALREADY STRUGGLING IN AUSTRALIA HOTEL OPERATORS OR MANAGEMENT COMPANIES EITHER LEASE A PROPERTY FROM THE OWNER OR MANAGE THE PROPERTY FOR A FEE THERE WAS A VERY PREGNANT PAUSE AFTER THEY THE PRITZKER REPRESENTATIVES DELIVERED THE NEWS SAYS TONY DIXON OF THE REACTION BY OWNERS OF THE SYDNEY AIRPORT PARKROYAL HOTEL WHICH IS OWED SEVERAL MILLION AUSTRALIAN DOLLARS UNDER SOUTHERN PACIFIC GUARANTEES MR DIXON DEVELOPMENT MANAGER FOR ONE OF THE HOTEL'S OWNERS SHIMIZU CORP OF JAPAN SAYS SOUTHERN PACIFIC'S MEN LEFT LITTLE DOUBT THAT THE PRITZKERS WERE WILLING TO LET THE HOTEL CHAIN GO DOWN THE DRAIN RATHER THAN PUT UP MORE MONEY TO MEET THEIR OBLIGATIONS SOUTHERN PACIFIC'S FINANCIAL WOES ARE THE LATEST CRISIS TO HIT AUSTRALIA'S BATTERED HOTEL INDUSTRY IN RECENT YEARS ACCORDING TO FIGURES COMPILED BY INTERNATIONAL REAL ESTATE CONCERN JONES LANG WOOTTON TRANSACT PTY 68 HOTELS OR 10961 ROOMS ARE IN THE HANDS OF RECEIVERS OR BANK CREDITORS IN AUSTRALIA THAT'S 10 OF THE TOTAL ROOMS AT THE COUNTRY'S THREE FOUR AND FIVESTAR HOTELS AND MARKS A 30 INCREASE FROM A YEAR AGO THE PRITZKERS BOUGHT INTO SOUTHERN PACIFIC IN 1988 AT THE BEHEST OF INDONESIANBORN HOTELIER ADRIAAN ZECHA AND ARRAL & PARTNERS LTD THE HONG KONG INVESTMENT FIRM WITH WHICH HE WAS ASSOCIATED AT THE TIME MR ZECHA AND ARRAL HAD ALREADY COLLABORATED ON A NUMBER OF HOTEL DEALS AND WERE LOOKING FOR MONEY TO BUY SOUTHERN PACIFIC WHICH HAD BEEN PUT UP FOR SALE BY MALAYSIAN BUSINESSMAN KHOO TECK PUAT IN THE WAKE OF A BANKING SCANDAL IN BRUNEI THE PRITZKERS CONTRIBUTED A THIRD OF THE A250 MILLION IN EQUITY USED IN THE A550 MILLION PURCHASE THE ACQUISITION GROUP BORROWED AN ADDITIONAL A300 MILLION FROM HONGKONG BANK TO FUND THE BUYOUT TWO YEARS LATER THE PRITZKERS BOUGHT UP THE REST OF THE COMPANY'S EQUITY THEIR PLAN WAS TO SELL THE HOTELS RETAIN THE OPERATING CONTRACTS AND TURN THE COMPANY INTO A HOTELMANAGEMENT CONCERN THE PROCESS WENT SMOOTHLY AT FIRST AND THE PRITZKERS USED THE PROCEEDS FROM THE HOTEL SALES TO PAY OFF MOST OF SOUTHERN PACIFIC'S DEBT THEN IN LATE 1989 A NATIONWIDE AIRLINE STRIKE BROUGHT AUSTRALIA'S HOTEL INDUSTRY TO A STANDSTILL BY THE TIME THE STRIKE WAS OVER THE COUNTRY WAS SLIDING INTO RECESSION THE CHAIN CONSISTS OF 68 HOTELS UNDER MANAGEMENT MOST OF WHICH ARE IN AUSTRALIA OPERATING UNDER THE PARKROYAL TRAVELODGE AND CENTRA HOTEL NAMES SOUTHERN PACIFIC STILL OWNS OR HOLDS EQUITY IN NINE OF THE HOTELS BUT THEIR VALUE HAS ATROPHIED REFLECTING DWINDLING CASH FLOWS 9306150053 930615 TAX ON FUELS MAY BE SLICED TO SWAY BAUCUS SENATE PANEL MAY BALANCE REVISION BY DROPPING BUSINESS TAX BREAKS BY JACKIE CALMES AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS ON THE SENATE FINANCE COMMITTEE STRUGGLING TO REACH CONSENSUS ON A DEFICITREDUCTION BILL NOW ARE TALKING ABOUT REDUCING SOME OF PRESIDENT CLINTON'S PROPOSED TAX BREAKS FOR BUSINESS TO SHRINK A PROPOSED FUELS TAX FURTHER SO FAR THE 11 LAWMAKERS HAVE BEEN UNABLE TO AGREE ON A PROPOSAL THAT WOULD RAISE THE TRANSPORTATIONFUELS TAX BY 73 CENTS A GALLON AND CUT FEDERAL HEALTH PROGRAMS DEEPER BOTH WERE OFFERED AS AN ALTERNATIVE TO MR CLINTON'S UNPOPULAR BROADBASED ENERGY TAX IN AN EFFORT TO ACCOMMODATE DEMOCRATIC MONTANA SEN MAX BAUCUS WHO CONTINUES TO OPPOSE THE FUELSTAX INCREASE AS UNFAIR TO DRIVERS IN HIS HUGE RURAL STATE SOME DEMOCRATS ARE CONSIDERING A PLAN TO INCREASE THE GASOLINE TAX BY LESS THAN A NICKEL A GALLON TO MAKE UP THE LOST REVENUE THESE DEMOCRATS ARE LOOKING AT MODIFYING ELEMENTS OF THE HOUSEPASSED TAX BILL THAT WOULD REDUCE TAXES ON CORPORATIONS SUBJECT TO WHAT IS KNOWN AS THE ALTERNATIVE MINIMUM TAX ENLARGE THE WRITEOFF OFFERED SMALL BUSINESSES WHO BUY EQUIPMENT AND SWEETEN TAX DEDUCTIONS OFFERED TO CERTAIN REALESTATE PROFESSIONALS AS PASSED BY THE HOUSE THE THREE PROVISIONS WOULD COST THE TREASURY 20 BILLION OVER FIVE YEARS THE DEMOCRATS STILL HAVEN'T MADE ANY FINAL DECISIONS PUTTING PRESSURE ON SENATE FINANCE COMMITTEE DEMOCRATS TO RESOLVE THEIR DIFFERENCES THE PANEL'S CHAIRMAN DANIEL PATRICK MOYNIHAN OF NEW YORK HAS SCHEDULED A PUBLIC MEETING TOMORROW TO BEGIN VOTING ON A DEFICITREDUCTION PLAN BUT THE SCHEDULE COULD SLIP IF THE 11 DEMOCRATS FAIL TO REACH A CONSENSUS TODAY WHEN THEY MEET FOR A FOURTH DAY BEHIND CLOSED DOORS DEMOCRATS WOULD LIKE TO PRESENT A UNITED FRONT WHEN THEY GO INTO PUBLIC SESSION WITH THE PANEL'S NINE REPUBLICANS WHO ARE EXPECTED TO VOTE AS A BLOC TO OPPOSE ANY DEMOCRATIC PLAN SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE WHO ALSO IS A MEMBER OF THE FINANCE PANEL SAID YESTERDAY WE'RE MAKING GOOD PROGRESS HE SAID HE HOPES THE FULL SENATE CAN START DEBATE EARLY NEXT WEEK ON A PACKAGE OF SPENDING CUTS AND TAX INCREASES TO CUT THE DEFICIT NEARLY 500 BILLION OVER FIVE YEARS ONCE THE FINANCE COMMITTEE BEGINS MEETING IN PUBLIC ONE STAFF MEMBER SUGGESTED ITS STARTING POINT WOULD INCLUDE A TAX INCREASE OF UP TO SEVEN CENTS A GALLON ON GASOLINE AND OTHER TRANSPORTATION FUELS TO RAISE ABOUT 40 BILLION OVER FIVE YEARS ABOUT 20 BILLION IN CUTS IN THE MEDICARE AND MEDICAID HEALTH PROGRAMS FOR THE POOR AND ELDERLY AND A CUT OF ROUGHLY 9 BILLION IN MR CLINTON'S PROPOSED EXPANSION OF A TAX CREDIT FOR THE WORKING POOR THE MIX WOULD REPLACE THE 70 BILLION FROM THE CLINTON ENERGY TAX A PROPOSAL EFFECTIVELY KILLED BY OILSTATE SENATORS BUT SEN BAUCUS IS CONTINUING TO RESIST A SEVENCENT FUELSTAX INCREASE AND DEMOCRATS MUST HAVE ALL 11 OF THEIR VOTES ON THE COMMITTEE TO PASS A PLAN GIVEN REPUBLICANS' OPPOSITION SEN BAUCUS HAS PROPOSED AS AN ALTERNATIVE DROPPING THAT LEVY AND INSTEAD HITTING BUSINESSES FOR MORE REVENUE HIS SUBSTITUTE WOULD RAISE THE CORPORATE INCOME TAX RATE TO 36 FROM 34 A SINGLE PERCENTAGE POINT HIGHER THAN THE LEVEL THE HOUSE PASSED AND MR CLINTON EVENTUALLY ENDORSED HE ALSO WOULD DROP A PROVISION EXPANDING A WRITEOFF FOR SMALL BUSINESSES' EQUIPMENT PURCHASES CUT IN HALF THE TAX RELIEF PROPOSED FOR CORPORATIONS THAT PAY THE ALTERNATIVE MINIMUM TAX AND EXTEND SEVERAL TAX BREAKS FOR BUSINESSES INCLUDING TAX CREDITS FOR BUSINESSES' RESEARCH AND FOR LOWINCOME HOUSING TEMPORARILY RATHER THAN PERMANENTLY HIS VERSION ALSO WOULD TRIM MEDICARE AND MEDICAID BY 16 BILLION OVER FIVE YEARS ON TOP OF MR CLINTON'S PROPOSAL TO CUT MORE THAN 50 BILLION SEN MOYNIHAN HAS PROPOSED CUTTING ABOUT 22 BILLION MORE THAN THE PRESIDENT WOULD SEN BAUCUS OFFERED THE LOWER FIGURE IN A BID TO PICK UP SUPPORT FROM DEMOCRATS WHO OPPOSE THE DEEPER CUTS SEN BILL BRADLEY D NJ ALSO IS PRESSING TO DROP SOME OF THE TAX BREAKS IN THE CLINTON PLAN INCLUDING ONE TO RESTORE A DEDUCTION FOR PASSIVE LOSSES ON RENTAL PROPERTY BUT HE WANTS TO USE THE REVENUE SAVED TO AVOID ADDITIONAL CUTS IN THE HEALTH PROGRAMS PRIMARILY WHILE SEN BAUCUS IS INTENT ON USING THE MONEY TO SUBSTITUTE FOR THE FUELS TAX EVEN THOUGH THE GASOLINE TAX IS CLEARLY VISIBLE TO TAXPAYERS AND OFTEN IS CRITICIZED ON CAPITOL HILL BECAUSE IT ESPECIALLY HITS LESS DENSELY POPULATED STATES IT HAS EMERGED AS POLITICALLY PREFERABLE TO MR CLINTON'S BROADBASED ENERGY TAX FOR A SIMPLE REASON THE SAME INTEREST GROUPS THAT SUCCESSFULLY BATTLED THE ENERGY TAX WOULDN'T HAVE TO PAY THE INCREASE LIKE EXISTING GASOLINE AND DIESEL TAXES THE INCREASE UNDER CONSIDERATION IN THE FINANCE COMMITTEE WOULDN'T APPLY TO FARMERS STATE AND LOCAL GOVERNMENTS NONPROFIT ORGANIZATIONS FISHERIES TIMBER COMPANIES INTERNATIONAL AIRLINES AND SHIPPING COMPANIES OR USERS OF DIESEL FUEL AS HEATING OIL THE ORIGINAL CLINTON ENERGY TAX WOULD HAVE HIT ALL OF THESE AND THE HOUSEPASSED VERSION WOULD HAVE APPLIED TO MANY OF THEM ALTHOUGH DUBBED A TRANSPORTATIONFUELS TAX BY LOUISIANA SEN JOHN BREAUX AND ITS OTHER BACKERS THE LEVY IS LITTLE MORE THAN AN INCREASE IN THE GASOLINE AND DIESEL TAX IN DISGUISE OF THE 40 BILLION THAT SEN BREAUX'S 73CENTSAGALLON PROPOSAL WOULD BRING TO THE GOVERNMENT OVER THE NEXT FIVE YEARS CONGRESSIONAL ANALYSTS ESTIMATE THAT ROUGHLY 35 BILLION OR MORE THAN 85 WOULD COME FROM GASOLINE AND HIGHWAY DIESEL FUEL AIRLINES RAILROADS AND SHIPPERS WOULD PAY THE REST INCREASING SUCH AN EXISTING TAX IS MUCH SIMPLER ADMINISTRATIVELY THAN IMPOSING A NEW TAX LIKE MR CLINTON'S COMPLEX ENERGY TAX BUT GASOLINE TAX INCREASES HAVE NEVER BEEN POPULAR IN 1990 PRESIDENT BUSH AND THE DEMOCRATIC LEADERSHIP OF CONGRESS AGREED TO INCREASE THE TAX BY 12 CENTS A GALLON IN THE MUCHMALIGNED BUDGET SUMMIT BUT THE HOUSE REJECTED THE ORIGINAL AGREEMENT WHEN THE PACT WAS RENEGOTIATED THE GASOLINE TAX WAS INCREASED BY A NICKEL A GALLON THE FEDERAL GASOLINE TAX CURRENTLY IS 141 CENTS A GALLON THE TAX ON DIESEL FUEL IS 201 CENTS A GALLON 9306150052 930615 ECONOMY BAN ON REPLACING STRIKERS SEEN FACING BLEAK FUTURE AS HOUSE PREPARES TO VOTE BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PROSPECTS ARE GROWING BLEAKER FOR LEGISLATION THAT WOULD BAN PERMANENT REPLACEMENT OF STRIKING WORKERS EVEN AS A SKITTISH HOUSE PREPARES TO APPROVE THE BILL TODAY THE MEASURE IS A CENTERPIECE OF ORGANIZED LABOR'S CAMPAIGN FOR RENEWAL IN THE 1990S AN EFFORT TO GAIN BACK THE STRENGTH THAT HAS WANED AS UNION MEMBERSHIP HAS SLIPPED TO 115 OF THE NONGOVERNMENT WORK FORCE FROM NEARLY 17 A DECADE AGO UNIONS ARGUE THAT WORKERS CAN'T EVEN CONSIDER GOING OUT ON STRIKE WHEN MANAGEMENT HOLDS OUT THE THREAT OF FIRING THEM THAT DIMINISHED THREAT IN TURN SKEWS THE COLLECTIVEBARGAINING PROCESS IN FAVOR OF COMPANIES UNIONS SAY AS MANAGEMENT NEEDN'T BARGAIN IN GOOD FAITH STRIKERREPLACEMENT BILLS HAVE BEEN KICKING AROUND FOR YEARS BUT THINGS WERE SUPPOSED TO BE DIFFERENT THIS YEAR UNLIKE THE SITUATION DURING THE PROMANAGEMENT REAGAN AND BUSH YEARS THE ADMINISTRATION IS BACKING THE BILL AND MANY MEMBERS OF THE DEMOCRATIC CONGRESS WERE HOPING TO PUT THE MEASURE ON PRESIDENT CLINTON'S DESK BY SUMMER LABOR SECRETARY ROBERT REICH ARGUES THAT THE BILL WILL STOP MANAGEMENT FROM USING REPLACEMENT WORKERS AS AN ACCEPTABLE WAY OF DOING BUSINESS A PATTERN HE SAYS BEGAN AFTER FEDERALLY EMPLOYED AIRTRAFFIC CONTROLLERS WERE FIRED AND REPLACED IN 1981 FOR WORKERS THE AVAILABILITY OF A STRIKE IS A CRUCIAL COUNTERWEIGHT TO THE ECONOMIC POWERS THAT BUSINESS OWNERS AND MANAGERS BRING TO THE BARGAINING TABLE HE SAYS BUT IN THE HOUSE SPLINTERING HAS EMERGED AMONG DEMOCRATIC BACKERS OF THE BILL MANY OF WHOM AT A CAUCUS THIS MORNING WILL URGE THE LEADERSHIP TO SLOW DOWN THAT'S IN PART THE RESULT OF FALLOUT FROM THE ADMINISTRATION'S STIMULUS AND BUDGET PACKAGES HOUSE DEMOCRATS SUPPORTED THESE PACKAGES BUT THEN FELT BURNED WHEN THE SENATE DIDN'T PASS THEM IT'S LEGITIMATE TO HOLD OFF FOR A WHILE UNTIL WE HAVE A BETTER IDEA WHAT THE SENATE WILL DO SAID REP TIMOTHY PENNY D MINN A COSPONSOR OF THE LEGISLATION IT WOULD BE NICE IF THE SENATE WOULD GO FIRST FOR ONCE HOUSE LEADERS WHO CALL THE BILL THE CESAR CHAVEZ WORKPLACE FAIRNESS ACT IN MEMORY OF THE LATE FARMWORKERS UNION LEADER ARE LIKELY TO REJECT THAT STRATEGY THEY EXPECT TO WIN BUT WITH SLIGHTLY FEWER THAN THE 247 BACKERS THE BILL GARNERED LAST SESSION THE PROBLEMS IN THE SENATE ARE MORE SEVERE PROPONENTS AND OPPONENTS AGREE LAST YEAR BACKERS OF THE BILL COULDN'T MUSTER MORE THAN 57 SUPPORTERS THREE SHORT OF THE 60 VOTES NEEDED TO BREAK A REPUBLICAN FILIBUSTER AND BRING THE MATTER TO THE SENATE FLOOR A SIMILAR SCENARIO APPEARS SET TO PLAY OUT THIS SUMMER AND THE ELECTION THIS MONTH OF REPUBLICAN KAY BAILEY HUTCHISON OF TEXAS TO A FORMERLY DEMOCRATIC SEAT MAKES MATTERS EVEN MORE DIFFICULT IT WILL BE A CHALLENGE TO GO OVER THE ROADBLOCKS THE REPUBLICANS ARE PUTTING IN FRONT OF BILLS SAYS SEN HOWARD METZENBAUM D OHIO CHAIRMAN OF THE LABOR SUBCOMMITTEE AND A CHIEF SPONSOR OF THE BILL BUT NEITHER SIDE IS BUYING ANY COMPROMISE SO FAR ALL ARE UNACCEPTABLE SAID AFLCIO SPOKESMAN DAVID SALTZ OF THE POSSIBLE CHANGES TO THE BILL LAST YEAR THE UNION GROUP BACKED A COMPROMISE OFFER BY SEN BOB PACKWOOD R ORE THAT WOULD HAVE PROTECTED WORKERS FROM BEING FIRED IF THEY AGREE TO ARBITRATION WHILE THEY WALK OUT THAT DIDN'T BRING THE SIDES CLOSER LAST YEAR AND IT ISN'T CLEAR THAT IT WOULD BE ANY MORE SUCCESSFUL THIS SESSION BUSINESS GROUPS ARE EQUALLY INTRANSIGENT I WISH TO PUT TO REST ANY QUESTION ABOUT BUSINESS'S POSITION SAID JERRY JASINOWSKI PRESIDENT OF THE NATIONAL ASSOCIATION OF MANUFACTURERS THE OPPOSITION IS SINGULAR IT IS BROADBASED AND IT RUNS DEEP IN THE HOUSE TODAY THE AMENDMENT WITH THE BEST CHANCE OF PASSAGE IS TO BE OFFERED BY TEXAS DEMOCRAT CHET EDWARDS WHO BACKED THE BILL LAST YEAR REP EDWARDS'S PROVISION WOULD LIMIT PROTECTION AGAINST REPLACEMENTS ONLY TO UNIONIZED WORKERS EXCLUDING THOSE SITES WHERE THE UNION HASN'T YET BEEN CERTIFIED THE MEASURE COULD PROVIDE POLITICAL COVER TO THOSE MEMBERS WHO ARE WORRIED ABOUT THE OPPOSITION BUSINESS GROUPS ARGUE HOWEVER THAT SUCH AN AMENDMENT WOULD GIVE A NEW RIGHT TO UNIONS THAT NONUNIONIZED SHOPS DON'T HAVE FOR MANY IN CONGRESS THE STRIKERREPLACEMENT QUESTION IS SO DIVISIVE BETWEEN THEIR BUSINESS AND WORKER CONSTITUENTS THAT THEY AREN'T EAGER TO VOTE ON IT BUT MR METZENBAUM WHO WANTS A SENATE VOTE IN JULY IS AMONG THOSE WHO DON'T WANT TO SLOW THINGS DOWN EVERY DAY HE ARGUES THE ORGANIZED WORK FORCE OF THIS COUNTRY IS BEING MORE AND MORE DECIMATED BY EMPLOYERS WHO ARE EITHER USING OR THREATENING TO USE STRIKER REPLACEMENTS 9306150051 930615 MARKETING & MEDIA ADVERTISING NIKE SCORES IN NBA FINALS AS STAR SINKS LONG SHOTS IN GAME AND ADS BY LAURA BIRD IN GAME THREE OF THE NATIONAL BASKETBALL ASSOCIATION CHAMPIONSHIP SERIES SUNDAY NIGHT AMERICA WATCHED DAN MAJERLE EARN HIS KEEP IN TRIPLE OVERTIME BOTH AS A GUARD FOR THE PHOENIX SUNS AND AS A PITCHMAN FOR NIKE THERE WAS MR MAJERLE LEADING THE PHOENIX SUNS' COMEBACK AGAINST THE MIGHTY CHICAGO BULLS IN THE MIDDLE OF THE BULLS' HOME COURT SINKING SIX THREEPOINT SHOTS TYING A LEAGUE RECORD DURING COMMERCIAL BREAKS THERE HE WAS AGAIN DOING MORE OF THE SAME THERE OUGHTA BE A STAT FOR DESIRE THEY COULD FIGURE OUT A FORMULA FOR IT MR MAJERLE SAYS IN AN AD NARRATING THE BLACKANDWHITE SPOT AS HE HUSTLES AROUND ON THE COURT DIVING FOR A LOOSE BALL AND SINKING A SHOT FROM LONG DISTANCE THEY COULD PUT IT IN THE PAPERS 10 GUYS WITH THE MOST DESIRE HOPEFULLY THEY'D SPELL MY NAME RIGHT WHAT COULD BE MORE PERFECT EXULTS A NIKE SPOKESWOMAN THERE HE WAS IN ONE OF THE GREAT MOVES OF THE GAME AND THEN THERE HE WAS IN A COMMERCIAL TALKING ABOUT DIVING FOR A LOOSE BALL AND IGNORING THE PAIN IT WAS ONE OF THOSE SERENDIPITOUS BLURRINGS OF ADVERTISING AND REALITY THAT MARKETERS DIE FOR THOUGH SUCH WINDFALLS RARELY HAPPEN DURING PRIMETIME INDEED THE NETWORKS TRY TO BLOCK COMMERCIALS FEATURING THEIR PRIMETIME STARS FROM AIRING DURING THE COMEDY AND DRAMA SERIES THAT MADE THE STARS FAMOUS COMEDIAN JERRY SEINFELD FOR INSTANCE DOESN'T PITCH THE AMERICAN EXPRESS CARD IN THE MIDDLE OF NBC'S SEINFELD THAT POLICY STEMS FROM THE PROGRAMMING DEPARTMENT'S CONCERN THAT VIEWERS WOULD CONFUSE THE REALLIFE PERSONALITY WITH THE FICTIONAL CHARACTER OF THE SHOW AN NBC SPOKESMAN SAYS BUT THE LINES ARE LESS DISTINCT IN SPORTS FROM AN ADVERTISER'S POINT OF VIEW INFILTRATING EVERY ASPECT OF THE GAME IS THE WHOLE POINT NIKE HAS HAD GOOD TIMING BEFORE THE SNEAKER MAKER KICKED OFF ITS UBIQUITOUS BO KNOWS SPOTS IN 1990 DURING THE BASEBALL ALLSTAR GAME WITH A SPOT THAT HAPPENED TO AIR FORTUITOUSLY JUST AFTER BO JACKSON HIT ONE OUT OF THE PARK IN HIS FIRST ATBAT THIS YEAR NIKE PUT FIVE OF ITS BASKETBALL ENDORSERS INTO A SERIES CALLED NBA UNPLUGGED THE SPOTS FROM NIKE AGENCY WIEDEN & KENNEDY OF PORTLAND ORE RECORD THE PLAYERS' THOUGHTS ON THE GAME AND THEIR FAME WHILE BLACKANDWHITE VIDEO PORTRAITS RECORD THEIR MOVES IN ONE UNPLUGGED PLUG THE MIAMI HEAT'S ROOKIE SLAMDUNKER HAROLD MINER DISCUSSES HOW HE EMULATED MICHAEL JORDAN ANOTHER NIKE ENDORSER BEFORE DECIDING JUST TO BE HIMSELF DAVID ROBINSON OF THE SAN ANTONIO SPURS DISCUSSES HIS DEFENSIVE MOVES NATURALLY NEITHER OF THESE SPOTS HAVE BEEN IN THE NIKE ROTATION DURING THE PHOENIXCHICAGO CHAMPIONSHIP SERIES INSTEAD MICHAEL JORDAN OF THE BULLS IN COMMERCIAL BREAKS PRACTICES FREE THROWS WHILE WONDERING WHAT IT WOULD BE LIKE NOT TO BE FAMOUS JUST A BASKETBALL PLAYER CHARLES BARKLEY OF THE SUNS REBOUNDS WHILE WAVING OFF THE SUGGESTION THAT HE'S A ROLE MODEL FOR AMERICA'S YOUTH I'M NOT PAID TO BE A ROLE MODEL HE SAYS GLARING AT THE CAMERA JUST BECAUSE I CAN DUNK A BASKETBALL DOESN'T MEAN I SHOULD RAISE YOUR KIDS ANOTHER BARKLEY SPOT DUBBED BARKLEY OF SEVILLE CASTS MR BARKLEY IN AN OPERATIC SENDUP OF ROSSINI'S BARBER OF SEVILLE THE SPOT CREATED FOR ITALIAN MARKETS PROCEEDS ENTIRELY IN ITALIAN INCLUDING WHEN MR BARKLEY FENDS OFF SOMEONE WITH DESIGNS ON HIS SNEAKERS BY BELLOWING LE SCARPE NO THE SPOT AIRED FOR FREE IN THE US WHEN SPORTSCASTERS INCLUDED IT IN THEIR SIR CHARLES FEATURE SEGMENTS THEN IT AIRED SOME MORE WHEN NIKE MOVED IT INTO ITS PAID ROTATION DURING THE PLAYOFFS VIEWERS CAN EXPECT MORE OF THE SAME FROM NIKE WHEN THE SUNS AND BULLS MEET FOR GAME FOUR TOMORROW NIGHT AS FOR MR MAJERLE THE NIKE SPOT MARKS THE 27YEAROLD ATHLETE'S BIGGEST ENDORSEMENT APPEARANCE BY FAR THOUGH HE HAS LOCAL DEALS WITH A HONDA DEALERSHIP AND A MCDONALD'S FRANCHISE IN PHOENIX BUT EXPERTS DOUBT HE WILL GROW INTO A MICHAEL JORDAN OR A BO JACKSON AND ATTRACT MUCH MORE INTEREST FROM ADVERTISERS HE HAS TRADITIONAL GOOD LOOKS BUT WE AREN'T TALKING SUPERSTAR QUALITIES SAYS NOVA LANKTREE PRESIDENT OF LANKTREE PASSPORT CELEBRITY NETWORK INC OF CHICAGO SHE MEANS HE LACKS A CERTAIN PIZZAZZ AND SHOWMANSHIP THAT SPONSORS SEEK SHE ADDS BUT THAT HAS NOTHING TO DO WITH HOW HE PLAYS BASKETBALL MILLER BREWING CO HAS REPEATED AS THE LARGEST BEER SPONSOR FOR PRO BASKETBALL SIGNING A NEW FOURYEAR CONTRACT WITH NBC THIS ONE ESTIMATED AT 200 MILLION THE MILLER DEAL GOES A SUBSTANTIAL WAY TOWARD FOOTING THE BILL FOR NBC'S NEW 750 MILLION FOURYEAR CONTRACT WITH THE NATIONAL BASKETBALL ASSOCIATION IT'S THE FIRST SPONSOR AGREEMENT TO BE ANNOUNCED SINCE NBC AND THE LEAGUE AGREED TO EXTEND THEIR CURRENT FOURYEAR PACT WHICH HAS ONE SEASON TO GO WITH THE NEW DEAL MILLER RETAINS EXCLUSIVE RIGHTS THROUGH THE 19971998 SEASON TO ONAIR PROMOTIONS IN THE BEER CATEGORY SUCH AS SUNDAY'S THIRD QUARTER GENUINE DRAFT GENUINE MOMENT THAT FEATURED MAGIC JOHNSON NBC A UNIT OF GENERAL ELECTRIC PAID A STEEP 25 INCREASE FOR ITS NEW CONTRACT WITH THE NBA AND A NETWORK SPOKESMAN SAID IT'S FAIR TO ASSUME THAT AD RATES WOULD REFLECT NBC'S INCREASED COSTS CURRENTLY MILLER A UNIT OF PHILIP MORRIS RUNS SIX SPOTS DURING EACH NBA CHAMPIONSHIP GAME MORE THAN ANY OTHER SPONSOR THE NBA FINALS ARE COVETED ADVERTISING FOR BREWERS BECAUSE THEY'RE THE ONLY MAJOR SPORTS SERIES DURING THE SECOND QUARTER OF THE YEAR THE REALLY PRIME BEERDRINKING TIME IS IN THE SUMMER AND IT CERTAINLY IS GOOD FOR US TO BE ASSOCIATED WITH SUCH A MAJOR SPORTING EVENT DURING THIS TIME SAID A MILLER SPOKESMAN AND A LOT OF SPORTS FANS DRINK BEER HE ADDED THE SEATTLE TIMES WILL NO LONGER CARRY ADS FOR TOBACCO PRODUCTS CITING CAMPAIGNS THAT APPEAL TO YOUNG PEOPLE AND MOUNTING EVIDENCE THAT IT'S A HEALTH HAZARD THE PAPER'S PRESIDENT H MASON SIZEMORE SAID THAT ONE AD IN PARTICULAR BROKE THE CAMEL'S BACK SO TO SPEAK THOUGH IT WASN'T FOR RJR NABISCO HOLDINGS' CAMEL CIGARETTES WHOSE MASCOT JOE CAMEL HAS A HIGH RECOGNITION AMONG THE COUNTRY'S YOUTH AND IS WIDELY REVILED BY ANTISMOKING ACTIVISTS JOE CAMEL WAS NOT THE AD THAT PUSHED US OVER MR SIZEMORE SAID IT WAS A MARLBORO AD AND THE MESSAGE GEARED AT YOUNG PEOPLE WAS THIS IS A HEALTHY LIFESTYLE EVEN THOUGH THAT CLEARLY IS NOT THE CASE MARLBORO'S MAKER PHILIP MORRIS COULDN'T BE REACHED BUT THE COMPANY HAS DENIED IT TARGETS YOUTH WITH ITS ADS THE MOVE WILL COST THE TIMES ABOUT 100000 THIS YEAR MR SIZEMORE SAID ADDING THAT THE FIGURE HAS BEEN DECLINING IN RECENT YEARS THE TIMES SAID THAT IT WILL HONOR EXISTING CONTRACTS AND THAT IT'S NEGOTIATING TO OBTAIN CIGARETTEFREE EDITIONS OF SYNDICATED PUBLICATIONS SUCH AS THE MAGAZINE PARADE WHO'S NEWS OMNICOM GROUP'S BBDO AGENCY NAMED DAVID MARTIN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF PENTACOM THE DETROIT SUBSIDIARY IT HAS CREATED TO HANDLE MEDIA PLANNING AND MARKETING AT CHRYSLER CORP'S DODGE JEEPEAGLE AND CHRYSLER/PLYMOUTH DIVISIONS MR MARTIN WAS PRESIDENT OF CULMEN CO A MARKETING FIRM AND EDITORATLARGE FOR MEDIA WEEK MAGAZINE 9306150050 930615 TECHNOLOGY & MEDICINE COLLECTIVE BARGAINING FOR DOCTORS SPARKS CONTENTION AT AMA ANNUAL CONVENTION BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO COLLECTIVE BARGAINING FOR DOCTORS IS TURNING INTO A CONTENTIOUS ISSUE AT THE AMERICAN MEDICAL ASSOCIATION'S ANNUAL MEETING DOCTORS IN SEPARATE PRACTICES CAN'T BAND TOGETHER TO SET FEES WITHOUT RISKING PROSECUTION FOR ANTITRUST VIOLATIONS WORRIES ABOUND TOO THAT PATIENT CARE WOULD SUFFER IN THE EVENT OF A STRIKE IN ADDITION SOME PHYSICIANS FEEL THAT COLLECTIVE BARGAINING WITH ITS ECHOES OF UNION PRACTICES WOULD DEMEAN THEIR PROFESSION YET THESE OBSTACLES HAVEN'T STOPPED DOCTOR GROUPS FROM CALIFORNIA AND SIX NEW ENGLAND STATES FROM PROPOSING IN FORMAL RESOLUTIONS THAT THE AMA ENDORSE COLLECTIVE BARGAINING EARLY INDICATIONS ARE THAT A SIZABLE MINORITY OF DOCTORS ARE INTRIGUED BY THE IDEA EVEN THOUGH SUPPORT MAY NOT BE BROAD ENOUGH TO WIN AMA APPROVAL WE KNOW THIS MAY SOUND INFLAMMATORY SAID JEROME FREEDMAN A NEW HAVEN CONN DELEGATE TO THE AMA CONVENTION BUT DR FREEDMAN SPEAKING IN DEFENSE OF THE NEW ENGLAND RESOLUTION SAID COLLECTIVE BARGAINING MIGHT BE NEEDED IF STATES OR THE FEDERAL GOVERNMENT SET BROAD LIMITS ON MEDICAL SPENDING ALSO SPEAKING UP FOR COLLECTIVE BARGAINING WAS SCOTT AARONS A DOCTOR FROM HARRIS COUNTY TEXAS THIS IS THE ONLY WAY WE CAN FIGHT MANAGEDCARE COMPANIES AS THEY TRY TO INTIMIDATE DOCTORS HE SAID DR AARONS SAID HE DOESN'T LIKE THE TERMS BEING OFFERED TO DOCTORS BY MANAGEDCARE COMPANIES BUT HE SAID THE COMPANIES CONTROL LARGE BLOCKS OF PATIENTS AND IF YOU DON'T GO ALONG YOU'RE OUT EVEN MORE APOCALYPTIC WAS DR WILLIAM RYAN OF PENNINGTON NJ WE'RE ESSENTIALLY POWERLESS TO DEAL WITH THE ONSLAUGHTS OF US HEALTHCARE CORP AND THE BLUES HE SAID REFERRING TO BLUE CROSS/BLUE SHIELD COMPANIES THIS IS ESSENTIAL TO THE SURVIVAL OF OUR PRACTICES FORMAL PROPOSALS DEBATED OTHER DOCTORS THOUGH TOOK ISSUE WITH ASPECTS OF THE COLLECTIVE BARGAINING PROPOSALS I'M CONCERNED ABOUT THE SPECTER OF A LABORUNION IMAGE SAID DR DANIEL JOHNSON OF METAIRIE LA SPEAKER OF THE AMA'S HOUSE OF DELEGATES EVEN THOUGH WE'RE SAYING THAT PATIENT CARE IS IMPORTANT THIS RUNS THE RISK OF A STRIKE DOCTORS VOICED CONCERN ABOUT THE MOST MILITANT PASSAGE IN THE CALIFORNIA RESOLUTION THE SECTION FAVORED MEDIATION AND BINDING ARBITRATION AS THE MORE DESIRABLE APPROACHES OF RESOLVING IMPASSES WITH HEALTHCARE PAYERS WHILE NOT PRECLUDING OTHER APPROPRIATE RESPONSES WHEN AGREEMENT CANNOT BE REACHED AS LONG AS THERE IS PROVISION OF ONGOING PATIENT CARE FOR NOW SENIOR AMA OFFICIALS ARE TAKING A MIDDLE COURSE LONNIE BRISTOW VICE CHAIRMAN OF THE AMA'S BOARD OF TRUSTEES SAID THE AMA HAS BEEN URGING THE CLINTON ADMINISTRATION TO EXPAND DOCTORS' RIGHTS TO NEGOTIATE AS A GROUP WITH PAYERS THEY'RE NOT UNSYMPATHETIC DR BRISTOW SAID BUT THEY ALWAYS RAISE SOME CONCERNS ABOUT A POSSIBLE STRIKE THERE'S SOME WORRISOME WORDING IN THE RESOLUTIONS DR BRISTOW TOLD COLLECTIVEBARGAINING ADVOCATES WHAT YOU WANT TO EMPHASIZE IS PATIENT CARE PATIENT CARE PATIENT CARE 9306150049 930615 FOREIGN EXCHANGE DOLLAR HITS NEW LOW AGAINST THE YEN ON FEAR OVER OUTCOME OF TRADE TALKS BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR SLIPPED TO ANOTHER RECORD LOW AGAINST THE YEN LARGELY ON CONCERN THAT THE LATEST USJAPAN TRADE TALKS ARE MAKING LITTLE PROGRESS THE DOLLAR ENDED MIXED AGAINST OTHER MAJOR CURRENCIES IN SLUGGISH TRADING LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16280 MARKS UP FROM 16275 MARKS LATE FRIDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10510 YEN DOWN FROM 10620 YEN STERLING WAS TRADING AT 15275 UP FROM 15225 ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10487 YEN AND AT 16270 MARKS DEALERS SAID THE MARKET IS AWAITING THE RELEASE OF US MAY CONSUMER PRICE DATA TODAY TO SEE WHETHER IT CONFIRMS THE APPARENT ABATEMENT OF INFLATIONARY PRESSURES SIGNALED BY FRIDAY'S REPORT ON MAY PRODUCER PRICES THE US MAY CONSUMER PRICE INDEX IS EXPECTED TO HAVE RISEN 02 FROM APRIL ACCORDING TO A SURVEY OF ECONOMISTS THE US PRODUCER PRICE INDEX WAS UNCHANGED IN MAY FROM APRIL PARTICIPANTS HAD ANTICIPATED A SLIGHT RISE THE DOLLAR'S RENEWED DECLINE AGAINST THE YEN MONDAY CAME DESPITE A GENERAL ABSENCE OF FRESH NEWS DEVELOPMENTS MARKET PARTICIPANTS SAID THE APPARENT LACK OF PROGRESS IN THE LATEST ROUND OF USJAPAN TRADE TALKS IN WASHINGTON FRIDAY PROVIDED THE MAIN IMPETUS FOR DOLLAR SALES SAID RICH SHIMOKAWA FOREIGN EXCHANGE MANAGER AT SUMITOMO BANK LTD US AND JAPANESE OFFICIALS DECLINED TO COMMENT SPECIFICALLY ON WHAT OCCURRED AT THEIR MEETINGS WHICH WILL RESUME IN LATE JUNE AND PLAYERS INTERPRETED THIS AS A SIGN THAT LITTLE HEADWAY HAD BEEN MADE MR SHIMOKAWA SAID THERE ARE FUNDAMENTAL DIFFERENCES BETWEEN THE US AND JAPAN ON TRADE AND IT WILL BE VERY DIFFICULT TO REACH AN AGREEMENT IN A VERY SHORT TIME HE SAID IF THERE IS NO AGREEMENT THERE IS ONLY ONE SOLUTION FOR NARROWING THE TRADE GAP AND THAT IS A STRONGER YEN HE ADDED JAPAN'S SPIRALING TRADE SURPLUSES HAVE BEEN A ROOT CAUSE OF THE YEN'S SURGING VALUE SINCE MIDFEBRUARY TRADERS NOTED IN ADDITION TO THE CONCERN ABOUT THE TRADE TALKS A REPORT THAT A SENIOR OFFICIAL OF JAPAN'S RULING LIBERAL DEMOCRATIC PARTY SAID A STRONGER YEN WOULDN'T HAVE BAD CONSEQUENCES FOR JAPAN IN THE LONGER TERM ALSO AIDED THE YEN'S ASCENT MONDAY MR SHIMOKAWA SAID THE BANK OF JAPAN ONCE AGAIN WAS SEEN MOVING TO SUPPORT THE DOLLAR IN THREE ROUNDS OF INTERVENTION IN ASIAN TRADING BUT AS HAS BEEN THE CASE ON SUCH OCCASIONS IN RECENT MONTHS THE BANK'S DOLLAR BUYING HAD NO VISIBLE IMPACT PARTICIPANTS SAID THE DOLLAR'S INTRADAY LOW OF 10510 YEN FIRST TOUCHED LATE IN ASIAN TRADING WAS A NEW POSTWORLD WAR II RECORD THE FORMER RECORD 10585 YEN WAS SET LAST THURSDAY THE DOLLAR FARED BETTER AGAINST THE MARK THAN AGAINST THE YEN MONDAY RENEWED SPECULATION THAT GERMAN INTEREST RATES MIGHT SOON RESUME THEIR DOWNWARD PATH WAS THE PRIMARY REASON TRADERS SAID SEPARATELY THE BANK FOR INTERNATIONAL SETTLEMENTS SAID THE EUROPEAN MONETARY SYSTEM IS VULNERABLE TO FURTHER SPECULATIVE ATTACKS BECAUSE OF UNRESOLVED IMBALANCES AMONG EUROPE'S STAGNATING ECONOMIES THE BIS A BASEL SWITZERLANDBASED CLEARING BANK FOR LEADING CENTRAL BANKS AND A LEADING MONETARY POLICY FORUM ALSO WARNED THAT NEW TECHNOLOGIES IN THE MARKETPLACE AND THE SHARP RISE IN CROSSBORDER CAPITAL FLOWS MAKE THE CURRENCY SYSTEM EASY PREY TO MASSIVE SHIFTS IN SENTIMENT IN THE WORLD'S NEARLY 1 TRILLIONADAY FOREIGNEXCHANGE MARKET 9306150048 930615 ABREAST OF THE MARKET MARKET IS LIFTED BY A FEW STOCKS WHILE AWAITING INFLATION REPORT BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SHARP GAINS IN A HANDFUL OF STOCKS BUOYED THE MARKET IN A CAUTIOUS SESSION AHEAD OF TODAY'S INFLATION REPORT EASTMAN KODAK CLIMBED 2 5/8 TO 53 3/4 AND CATERPILLAR ROSE 1 7/8 TO 77 3/4 HELPING LIFT THE DOW JONES INDUSTRIAL AVERAGE 968 OR 028 TO 351469 MEANWHILE THE DOW JONES TRANSPORTATION AVERAGE SKIDDED 1911 OR 124 TO 152135 IN A BROADBASED RETREAT LED BY BURLINGTON NORTHERN WHICH SHED 1 TO 50 3/4 XTRA WHICH EASED 2 1/8 TO 34 AND UAL WHICH SLIPPED 1 1/2 TO 131 7/8 WE ARE IN LIMBO BETWEEN THE FAVORABLE PPI NUMBER AND THE UNKNOWN CPI SAID JOSEPH J MCALINDEN RESEARCH DIRECTOR AT DILLON READ A BENIGN READING ON THE LABOR DEPARTMENT'S PRODUCER PRICE INDEX SOOTHED INVESTORS' INFLATION FEARS FRIDAY BUT THERE WAS CONCERN YESTERDAY BEFORE THE CONSUMER PRICE REPORT DUE THIS MORNING ANALYSTS EXPECT THE GOVERNMENT TO REPORT A 02 INCREASE IN THE CPI FOR LAST MONTH SOCALLED CORE INFLATION WHICH EXCLUDES FOOD AND ENERGY PRICES IS SEEN UP 03 IN THE PERIOD TRADERS SAID THERE WAS LITTLE NEWS TO MOVE THE MARKET OUTSIDE OF DEVELOPMENTS AFFECTING INDIVIDUAL ISSUES BIG BOARD VOLUME AT 210410000 SHARES WAS THE LOWEST IT HAS BEEN SINCE MAY 28 ON FRIDAY 253470000 SHARES CHANGED HANDS DECLINING STOCKS LED ADVANCERS 960 TO 946 THE STANDARD & POOR'S 500 STOCK INDEX ADDED 045 OR 010 TO 44771 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 018 OR 007 TO 24642 AND THE DOW JONES EQUITY MARKET INDEX INCREASED 052 OR 012 TO 42410 STEVEN GOLDMAN MARKET STRATEGIST AT WEEDEN & CO SAID HE EXPECTS THE MARKET AVERAGES TO INCH BACK TOWARD THEIR RECORD HIGHS PROVIDED THAT THE CONSUMER PRICE DATA MEET EXPECTATIONS BUT HE SAID HIGH VALUATIONS AND CONTINUED CONCERN OVER THE ECONOMY WILL LIMIT THE GAINS KODAK SHARES ROSE IN ANTICIPATION OF MEETINGS THE COMPANY HAS SAID IT WILL HOLD TOMORROW WITH INVESTORS AND ANALYSTS THE ROCHESTER NY PHOTOGRAPHICSUPPLIES MANUFACTURER HAS SAID ONLY THAT IT WILL DISCUSS BUSINESS ISSUES ANALYSTS SPECULATED KODAK WILL UNVEIL DETAILS OF ITS RESTRUCTURING EFFORTS OBSERVERS WERE UNABLE TO EXPLAIN THE JUMP IN CATERPILLAR SHARES A SPOKESMAN FOR THE PEORIA ILL HEAVYEQUIPMENT MAKER SAID THERE WAS NO NEWS TO ACCOUNT FOR THE MOVE THE STOCK HAS CLIMBED FROM THE LOW 70S SINCE LATE LAST MONTH US SURGICAL FELL 3 1/8 TO 26 5/8 THE NORWALK CONN MEDICAL PRODUCTS COMPANY LATE FRIDAY SAID IT EXPECTS TO POST A LOSS FOR THE SECOND QUARTER PARTLY BECAUSE COMPETITION HAS DEPRESSED THE PRICES OF ITS PRODUCTS ANALYSTS HAD EXPECTED THE COMPANY TO RECORD A PROFIT OF ABOUT THREE CENTS A SHARE IN THE QUARTER IT REPORTED NET INCOME OF 58 CENTS A SHARE A YEAR EARLIER FORD MOTOR SKIDDED 1 7/8 TO 51 7/8 AFTER THE DEARBORN MICH AUTO MAKER SAID IT EXPECTS ITS EUROPEAN BUSINESSES TO POST AN OPERATING LOSS THIS YEAR WAYNE W BOOKER EXECUTIVE VICE PRESIDENT FOR INTERNATIONAL OPERATIONS SAID THE RECESSION IN EUROPE MAY BE THE CONTINENT'S WORST SINCE WORLD WAR II SYNTEX SLIPPED 5/8 TO 18 7/8 THE PALO ALTO CALIF DRUG COMPANY SAID GERMAN REGULATORS PLAN TO REVOKE ITS LICENSE TO MARKET THE PAINRELIEVER KETOROLAC IN THAT COUNTRY SYNTEX SAID IT DISAGREES WITH THE ACTION BUT HAS SUSPENDED GERMAN SALES OF THE PRODUCT REEBOK FELL 4 3/8 TO 30 AFTER THE MARKET CLOSED THE STOUGHTON MASS FOOTWEAR COMPANY PROJECTED SECONDQUARTER NET INCOME OF 44 CENTS TO 48 CENTS A SHARE BELOW THE 56 CENTS TO 60 CENTS IT SAID ANALYSTS HAVE FORECAST BARNETT BANKS ROSE 1 1/2 TO 47 ON RUMORS THAT THE JACKSONVILLE FLA CONCERN WAS IN TALKS TO BE ACQUIRED BARNETT DECLINED TO COMMENT ON THE SPECULATION BUT SAID IT PLANS TO REMAIN AN INDEPENDENT COMPANY BECTON DICKINSON JUMPED 1 7/8 TO 39 1/4 AFTER THE FRANKLIN LAKES NJ MEDICAL SUPPLIES COMPANY AGREED TO HELP FUND NEXAGEN INC'S DEVELOPMENT OF DIAGNOSTICS BECTON WILL MARKET PRODUCTS DERIVED FROM THAT EFFORT NEXAGEN IS A CLOSELY HELD BOULDER COLO CONCERN PRECIOUS METALS STOCKS GAINED A MOVE MR MCALINDEN OF DILLON READ SAID MAY HAVE BEEN TIED TO SHORTCOVERING AHEAD OF THE CPI READING A STRONG INFLATION READING COULD SEND COMMODITIES PRICES AND SHARES OF THEIR PRODUCERS HIGHER SHORTCOVERING REFERS TO THE UNWINDING OF A TRADING STRATEGY THAT IS USED AS A BET THAT A STOCK'S PRICE WILL FALL HOMESTAKE MINING ROSE 3/8 TO 17 AMERICAN BARRICK GAINED 1/4 TO 21 1/2 HECLA MINING INCREASED 1/2 TO 13 3/8 AND NEWMONT GOLD ADVANCED 3/8 TO 39 3/4 THE PRICE OF GOLD FOR DELIVERY IN AUGUST THOUGH FELL 90 CENTS TO 36660 AN OUNCE IN NEW YORK 9306150047 930615 WHO'S NEWS US HOMECARE CORP US HOMECARE CORP HARTSDALE NY MARY E REYNOLDS 35 YEARS OLD WAS NAMED DIRECTOR OF USHO VENTURES A LIMITED PARTNERSHIP ESTABLISHED IN APRIL BY THIS PROVIDER OF HOMEBASED HEALTHCARE SERVICES BEFORE JOINING USHO VENTURES MS REYNOLDS WAS A GENERAL PARTNER AT PHOENIX GROUP WHERE SHE HELPED TO ESTABLISH A PHARMACEUTICAL AND BIOTECHNOLOGY FIRM AND A DURABLEMEDICALEQUIPMENT COMPANY 9306150046 930615 BUSINESS BRIEF ITT CORP COURT APPROVES ASSUMPTION OF PACIFIC STANDARD POLICIES A REHABILITATION PLAN FOR PACIFIC STANDARD LIFE INSURANCE CO UNDER WHICH ITT CORP'S INSURANCE UNIT WILL ASSUME 600 MILLION IN LIFE AND ANNUITY POLICIES WAS APPROVED BY A STATE COURT IN SACRAMENTO CALIF HARTFORD INSURANCE CO A MEMBER OF ITT HARTFORD INSURANCE GROUP WILL PROTECT 83000 PACIFIC STANDARD POLICYHOLDERS SAID THE STATE'S INSURANCE COMMISSIONER JOHN GARAMENDI ITT HARTFORD BASED IN HARTFORD CONN IS A UNIT OF NEW YORKBASED ITT CORP WHICH ALSO HAS HOTEL AND VARIOUS INDUSTRIAL BUSINESSES PACIFIC STANDARD LIFE BASED IN DAVIS CALIF WAS PLACED IN CONSERVATORSHIP IN DECEMBER 1989 BY STATE REGULATORS 9306150045 930615 BUSINESS BRIEF UNIONFED FINANCIAL CORP RIGHTS OFFERING IS PLANNED IN BID TO AID SAVINGS BANK UNIONFED FINANCIAL CORP BREA CALIF SAID IT PLANS A RIGHTS OFFERING AS PART OF A CAPITAL RESTORATION PLAN TO RAISE 35 MILLION TO 40 MILLION IN A BID TO KEEP ITS UNION FEDERAL BANK FROM BEING SEIZED BY REGULATORS ON JUNE 3 THE FEDERAL OFFICE OF THRIFT SUPERVISION INFORMED THE SAVINGS BANK THAT IT HAD BEEN CLASSIFIED AS CRITICALLY UNDERCAPITALIZED AS A RESULT THE THRIFT MUST BE PLACED IN RECEIVERSHIP OR CONSERVATORSHIP WITHIN 90 DAYS UNLESS THE OTS AND THE FEDERAL DEPOSIT INSURANCE CORP APPROVE A CAPITAL PLAN UNIONFED SAID UNDER THE PLAN THE SAVINGS BANK WOULD BE REQUIRED TO ACHIEVE CORE CAPITAL AND RISKBASED CAPITAL RATIOS OF 4 AND 8 RESPECTIVELY NO LATER THAN SEPT 30 AT MARCH 31 UNIONFED'S CORE CAPITAL RATIO WAS 213 AND ITS RISKBASED CAPITAL RATIO WAS 428 IN ADDITION TO THE PLANNED EQUITY INFUSION WHICH WILL SUBSTANTIALLY DILUTE EXISTING SHAREHOLDERS THE PLAN ALSO CONTEMPLATES FURTHER REDUCTIONS IN ASSETS AND LIABILITIES UNIONFED SAID 9306150044 930615 MARKETING & MEDIA NOTED RADIO EVERGREEN MEDIA CORP IRVING TEXAS COMPLETED THE PURCHASE OF HOUSTON STATIONS KTRHAM AND KLOLFM FROM RUSK CORP FOR 51 MILLION 9306150043 930615 TECHNOLOGY & MEDICINE FDA TO PROPOSE ALLOWING CLAIMS FOR FOLIC ACIDS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FOOD AND DRUG ADMINISTRATION PLANS TO PROPOSE ALLOWING LABELS ON FOOD AND DIETARY SUPPLEMENTS TO INCLUDE A CLAIM THAT FOLIC ACID AIDS IN REDUCING SOME BIRTH DEFECTS THE MOVE IS PART OF A NEW FDA PUSH TO BAR HEALTH CLAIMS ON SUPPLEMENT LABELS UNLESS THE CLAIMS ARE SUFFICIENTLY BACKED UP BY SCIENTIFIC RESEARCH THE AGENCY'S GENERAL PROPOSALS ON SUPPLEMENTS COULD BE PUBLISHED IN THE FEDERAL REGISTER AS EARLY AS TOMORROW THE FORMAL PROPOSAL ON FOLIC ACID A B VITAMIN WON'T BE PUBLISHED UNTIL NEXT MONTH A HEALTH CLAIM FOR FOLIC ACID WOULD ACKNOWLEDGE A GROWING BODY OF EVIDENCE THAT SUGGESTS THE VITAMIN CUTS THE RISK FOR PREGNANT WOMEN OF BEARING A CHILD WITH SPINA BIFIDA A MALFORMATION OF THE SPINAL CORD THAT CAUSES PARALYSIS OR ANENCEPHALY A FATAL DEFECT IN WHICH THE BRAIN AND SKULL FAIL TO DEVELOP FDA OFFICIALS SAID THE AGENCY WILL FOCUS NEXT ON ANTIOXIDANT VITAMINS IN AN EFFORT TO WORK WITH FOOD AND SUPPLEMENT MANUFACTURERS AND THE SCIENTIFIC COMMUNITY IN DETERMINING WHAT HEALTH CLAIMS WILL BE ALLOWED THOSE VITAMINS INCLUDE VITAMIN E WHICH HAS BEEN LINKED TO A REDUCTION IN THE RISK OF HEART DISEASE AND BETA CAROTENE WHICH HAS BEEN CORRELATED WITH A LOWERED RISK OF LUNG CANCER THE EFFORTS TO ALLOW ADDITIONAL HEALTH CLAIMS COULD HELP SWEETEN A BITTER PILL THE FDA IS TRYING TO FORCE THE 35 BILLION SUPPLEMENT INDUSTRY TO SWALLOW IN THE FORM OF TIGHTER RULES FOR HEALTH CLAIMS THE AGENCY'S ACTION WHICH IS DUE THIS WEEK UNDER A CONGRESSIONAL DEADLINE HAS ALREADY LED TO A LETTERWRITING CAMPAIGN BY OPPONENTS AND THE INTRODUCTION OF LEGISLATION TO BLUNT THE FDA'S ACTION THE CONTROVERSY COMES AS INCREASING NUMBERS OF PEOPLE ARE TAKING NUTRITIONAL SUPPLEMENTS WHICH RANGE FROM VITAMINS AND MINERALS TO PROTEIN SUPPLEMENTS AND EXOTIC BLENDS OF HERBS FDA OFFICIALS INSIST THEY WANT CONSUMERS TO HAVE ACCESS TO SAFE AND EFFECTIVE SUPPLEMENTS BUT CONTEND THAT ACTION IS NEEDED TO GUARD AGAINST PRODUCTS THAT ARE UNNECESSARY OR HARMFUL AS EXPECTED THE AGENCY IS PROPOSING GENERALLY TO ALLOW ONLY THOSE HEALTH CLAIMS FOR WHICH THERE IS SIGNIFICANT AGREEMENT WITHIN THE SCIENTIFIC COMMUNITY THAT A LINK BETWEEN THE NUTRIENT AND THE HEALTH BENEFIT HAS BEEN ESTABLISHED INDUSTRY OFFICIALS CONTEND THE STANDARD IS TOO RIGID AND WOULD FORCE MANY PRODUCTS OFF THE SHELVES THE FDA ALSO IS CALLING ON MAKERS OF AMINO ACID SUPPLEMENTS WHICH ARE USED BY BODY BUILDERS AMONG OTHERS TO DEMONSTRATE THE PRODUCTS ARE SAFE THE AGENCY IS SEEKING PUBLIC COMMENT ON HOW TO ESTABLISH THE SAFE UPPER LIMIT FOR VITAMINS AND MINERALS THE AGENCY ALSO IS SOLICITING COMMENTS ON THE FINAL REPORT OF AN FDA TASK FORCE CONVENED IN 1991 TO EXAMINE ALTERNATIVES TO REGULATING VARIOUS DIETARY SUPPLEMENT PRODUCTS 9306150042 930615 LAW TOP COURT EASES WAY FOR FIRMS TO FIGHT PUBLIC CONTRACTS SET ASIDE FOR MINORITIES BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT IN A PROCEDURAL RULING MADE IT EASIER FOR BUSINESSES TO CHALLENGE GOVERNMENT PROGRAMS THAT SET ASIDE A CERTAIN AMOUNT OF PUBLIC CONTRACTS FOR MINORITIES THE HIGH COURT SAID THAT A PREDOMINANTLY WHITE BUILDERS' ASSOCIATION DIDN'T HAVE TO SHOW THAT ITS MEMBERS LOST SPECIFIC BIDS IN ORDER TO CHALLENGE A JACKSONVILLE FLA POLICY OF SETTING ASIDE 10 OF THE CITY'S PUBLIC CONSTRUCTION CONTRACTS FOR MINORITY BUSINESSES THE 72 DECISION WILL MAKE CITY COUNCIL MEMBERS RELUCTANT TO APPROVE MINORITY SETASIDE PROGRAMS BECAUSE THEY MAY BE SUED SAID KATE GUSTAFSON LEGAL COUNSEL FOR THE NATIONAL LEAGUE OF CITIES AS A RESULT THERE WILL BE FEWER SUCH PROGRAMS SHE PREDICTED MIKE DUNHAM EXECUTIVE VICE PRESIDENT OF THE NORTHEAST FLORIDA CHAPTER OF ASSOCIATED GENERAL CONTRACTORS THE ORGANIZATION THAT FILED THE SUIT SAID HIS MEMBERS WANT TO WORK WITH THE MINORITY COMMUNITY TO COME UP WITH A PROGRAM THAT BENEFITS EVERYONE THE QUESTION OF WHO HAS THE LEGAL RIGHT OR STANDING TO FILE LAWSUITS ATTACKING AFFIRMATIVE ACTION PROGRAMS HAS ARISEN FREQUENTLY SINCE 1989 WHEN THE SUPREME COURT STRUCK DOWN A MINORITY SETASIDE LAW IN RICHMOND VA IN THE RICHMOND CASE THE HIGH COURT SAID THAT STATE AND LOCAL GOVERNMENTS MAY NOT USE RACIAL PREFERENCES IN DOLING OUT PUBLIC WORK UNLESS OFFICIALS CAN SHOW THAT SETASIDES ARE NEEDED TO REMEDY PAST DISCRIMINATION THE 1989 DECISION HAS PROMPTED DOZENS OF LEGAL CHALLENGES TO STATE AND MUNICIPAL AFFIRMATIVEACTION POLICIES IN THE CASE THE HIGH COURT DECIDED THE ASSOCIATED GENERAL CONTRACTORS CHAPTER SOUGHT TO INVALIDATE THE JACKSONVILLE LAW A FEDERAL TRIAL JUDGE HAD ISSUED AN ORDER BLOCKING ENFORCEMENT OF THE LAW BUT THE FEDERAL APPEALS COURT IN ATLANTA REVERSED THAT RULING AND INSTRUCTED THAT THE SUIT BE DISMISSED THE APPELLATE COURT SAID THE BUILDERS' GROUP FAILED TO SHOW THAT ANY OF ITS MEMBERS HAD BEEN DENIED A PARTICULAR CONTRACT BECAUSE OF THE RACIALPREFERENCE POLICY THE SUPREME COURT REVERSED THE APPEALS COURT'S DECISION AND SENT THE CASE BACK FOR TRIAL IN AN OPINION WRITTEN BY JUSTICE CLARENCE THOMAS THE HIGH COURT SAID THAT TO ESTABLISH STANDING TO CHALLENGE A BARRIER SUCH AS A MINORITY SETASIDE PROGRAM A GROUP NEED NOT ALLEGE THAT IT WOULD HAVE OBTAINED THE BENEFIT BUT FOR THE BARRIER WHAT GIVES STANDING HE CONTINUED IS THE DENIAL OF EQUAL TREATMENT RESULTING FROM THE IMPOSITION OF THE BARRIER NOT THE ULTIMATE INABILITY TO OBTAIN THE BENEFIT SEVERAL CIVIL RIGHTS ORGANIZATIONS FILED PAPERS SUPPORTING THE CONTRACTORS GROUP'S RIGHT TO SUE EVEN THOUGH THEY APPROVE OF SETASIDE PROGRAMS HAD THE CONTRACTORS SUIT BEEN DISMISSED BLACKS HISPANICS WOMEN AND OTHERS COULD HAVE BEEN BARRED FROM CHALLENGING GOVERNMENT PROGRAMS TOO SAID RICHARD LARSEN LEGAL DIRECTOR FOR THE MEXICAN AMERICAN LEGAL DEFENSE AND EDUCATION FUND THE HIGH COURT DIDN'T ADDRESS THE MERITS OF THE JACKSONVILLE MINORITYPREFERENCE RULE ITSELF JUSTICE SANDRA O'CONNOR JOINED BY JUSTICE HARRY BLACKMUN DISSENTED SAYING THAT THE SUPREME COURT SHOULD HAVE DISMISSED THE APPEAL AS MOOT BECAUSE JACKSONVILLE HAS SINCE CHANGED ITS MINORITYPREFERENCE LAW ON ANOTHER MATTER THE COURT AGREED TO CONSIDER WHETHER WOMEN'S RIGHTS GROUPS MAY USE THE POTENT FEDERAL RACKETEERING LAW IN THEIR LEGAL BATTLE AGAINST ANTIABORTION FORCES THE JUSTICES WILL REVIEW A LOWER COURT RULING THAT SAID WOMEN'S GROUPS COULDN'T SUE ANTIABORTION ACTIVISTS UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT OR RICO IN A CASE ALLEGING THERE'S A NATIONWIDE CONSPIRACY TO INTIMIDATE ABORTION CLINICS INTO CLOSING THE US COURT OF APPEALS FOR THE SEVENTH CIRCUIT IN CHICAGO SAID PLAINTIFFS IN CIVIL RACKETEERING SUITS MUST SHOW THAT THE DEFENDANTS HAD AN ECONOMIC MOTIVE IT SAID THE NATIONAL ORGANIZATION FOR WOMEN AND ALLIED GROUPS HAD FAILED TO DO SO IN A BRIEF FILED AT THE HIGH COURT'S REQUEST THE CLINTON ADMINISTRATION URGED THE JUSTICES TO REVERSE THE APPEALS COURT'S RULING NOTHING IN RICO'S BROAD PROSCRIPTION OF RACKETEERING ACTIVITY SUGGESTS A CONGRESSIONAL DESIGN TO REACH ONLY CONDUCT INVOLVING ECONOMIC MOTIVATIONS GOALS OR PURPOSES THE ADMINISTRATION ARGUED 9306150041 930615 STEEL PRODUCTION FELL BY 3 IN LATEST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 3 LAST WEEK TO 1808000 TONS FROM 1864000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 26 FROM THE 1762000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 854 OF ITS CAPABILITY LAST WEEK COMPARED WITH 881 THE PREVIOUS WEEK AND 818 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9306150040 930615 TECHNOLOGY BRIEF MCI COMMUNICATIONS CORP ACCORD IS SIGNED TO PROVIDE SERVICES TO INSURANCE FIRMS MCI COMMUNICATIONS CORP SAID IT SIGNED A FIVEYEAR AGREEMENT IN PRINCIPLE WHICH IT VALUED AT 1 BILLION TO PROVIDE VOICE AND DATA TELECOMMUNICATIONS SERVICES TO INSURANCE COMPANIES MCI WASHINGTON DC WON THE CONTRACT FROM INSURANCE VALUE ADDED NETWORK SERVICES OR IVANS AN ELECTRONIC COMMUNICATIONS NETWORK THAT INCLUDES OVER 400 PROPERTY CASUALTY LIFE AND HEALTH INSURANCE COMPANIES AND BUSINESS PARTNERS IVANS IS BASED IN RYE BROOK NY THE CONTRACT IS EXPECTED TO REDUCE THE PRICES OF TELECOMMUNICATIONS SERVICES FOR IVANS' MEMBERS BY 15 TO 30 OVER THE NEXT YEAR OR TWO ACCORDING TO ROBERT Y BARHAM CHIEF EXECUTIVE OF IVANS MR BARHAM SAID THE INSURANCE INDUSTRY SPENDS ABOUT 15 BILLION ANNUALLY ON VOICE AND DATA SERVICES OF WHICH IVANS MEMBERS' SHARE IS ABOUT 60 OR 900 MILLION HE SAID THAT WHILE MCI HAD CAPTURED ABOUT 200 MILLION OF THE 900 MILLION IN ANNUAL EXPENSES THE REMAINING AMOUNT WAS STILL UP FOR GRABS 9306150039 930615 MADONNA CONCERN FORMS TV ALLIANCE WITH ABC NEW YORK THE ABC NETWORK SIGNED A DEVELOPMENT DEAL WITH MADONNA'S MAVERICK TELEVISION CO THE SINGER'S FIRST ALLIANCE WITH ONE OF THE BIG THREE TELEVISION NETWORKS TO PRODUCE SERIES MINISERIES SPECIALS AND MOVIES MADONNA SAID IN A STATEMENT THAT SHE WANTS TO JOIN FORCES WITH AN ESTABLISHED NETWORK THAT IS WILLING TO TAKE CHANCES ABC SAID PROJECTS FROM THE SINGER HAVE THE EVENT CACHET THAT IT IS SEEKING THE FIRST PROGRAM TO COME OUT OF THE MULTIYEAR AGREEMENT WILL BE A FOURHOUR MINISERIES MADONNA THE EARLY YEARS TO BE BROADCAST IN 1994 ON THE ABC TELEVISION NETWORK THE CAPITAL CITIES/ABC INC UNIT SAID MAVERICK PRESIDENT IRIS DUGOW SAID THE COMPANY OF WHICH MADONNA IS COCHAIRMAN WITH FREDDY DEMANN ALSO HAS A FOURHOUR MINISERIES ON MICHAEL MILKEN IN THE WORKS FOR ABC AS WELL AS SEVERAL SERIES AND MOVIES THE PROJECTS TO COME OUT OF THE ALLIANCE WILL BE PRODUCED BY MAVERICK IN ASSOCIATION WITH ABC PRODUCTIONS IF THE ABC NETWORK CHOOSES NOT TO SHOW THEM THEY MAY BE BROADCAST ELSEWHERE MS DUGOW SAID NO FINANCIAL TERMS WERE DISCLOSED MAVERICK IS A UNIT OF MAVERICK ENTERTAINMENT AND IS FINANCED BY TIME WARNER INC 9306150038 930615 CHRYSLER MAY ACCELERATE PRODUCTION OF NEON MODEL HIGHLAND PARK MICH CHRYSLER CORP IS CONSIDERING STEPPING UP THE PLANNED PRODUCTION OF ITS NEW SMALL CAR THE NEON A MOVE THAT COULD INCREASE PROFIT NEXT YEAR BY AS MUCH AS 200 MILLION ANALYSTS SAY A CHRYSLER SPOKESMAN SAID NO DEFINITE DECISION HAS BEEN REACHED BUT CONFIRMED REPORTS THAT THE AUTO MAKER IS CONSIDERING ACCELERATING ITS PRODUCTION A PRODUCTION SPEEDUP WOULD MEAN THAT CHRYSLER WHICH WILL BEGIN PRODUCING THE NEON IN NOVEMBER WOULD REACH A MONTHLY PRODUCTION RATE OF 20000 CARS BY FEBRUARY 1994 INSTEAD OF JUNE 1994 AS PREVIOUSLY PLANNED THE TRADE PUBLICATION AUTOMOTIVE NEWS REPORTED CHRYSLER HAS TOUTED THE NEON AS PROOF THAT IT HAS LEARNED TO DEVELOP CARS MORE QUICKLY AND LESS EXPENSIVELY THAN ITS RIVALS THE CAR IS EXPECTED TO SELL FOR AN AVERAGE OF 11000 MOST AUTO MAKERS INCLUDING CHRYSLER ROUTINELY TAKE LOSSES ON SMALL CARS BUT SELL THEM TO MEET FEDERAL FUEL ECONOMY REQUIREMENTS BUT CHRYSLER SAYS THE NEON WHICH WILL REPLACE THE DODGE SHADOW AND THE PLYMOUTH SUNDANCE WILL BE PROFITABLE HEAVIER PRODUCTION OF THE NEON WOULD MEAN THAT CHRYSLER WILL BE ABLE TO STOP SELLING THE HEAVILY SUBSIDIZED SHADOW AND SUNDANCE SOONER SAID DAVID HEALY AN AUTO INDUSTRY ANALYST WITH SG WAR BURG SECURTITIES IN NEW YORK 9306150037 930615 ASSETS OF TOP PREMIUM SALES OFFICERS ARE FROZEN BY FEDERAL COURT IN MIAMI BY NIKHIL DEOGUN STAFF REPORTER OF THE WALL STREET JOURNAL A FEDERAL JUDGE TEMPORARILY FROZE THE ASSETS OF TOP OFFICERS OF PREMIUM SALES CORP THE FLORIDA COMPANY ACCUSED BY GOVERNMENT REGULATORS OF DEFRAUDING INVESTORS AND CONDUCTING SHAM TRANSACTIONS FOLLOWING A REQUEST BY THE COURTAPPOINTED RECEIVER US DISTRICT JUDGE FEDERICO A MORENO IN MIAMI FROZE UNTIL JUNE 24 THE ASSETS OF KENNETH THENEN THE COMPANY'S PRESIDENT THE ASSETS OF HIS WIFE AND SON AND THOSE OF DANIEL MORRIS THE COMPANY'S SALES MANAGER EDWARD SHOHAT MR THENEN'S ATTORNEY PROTESTED THE FREEZE ESPECIALLY AGAINST BRENDA THENEN AND SCOTT THENEN SAYING THAT THEY AREN'T OFFICERS OR SHAREHOLDERS OF PREMIUM SALES THE MOVES ARE THE MOST RECENT IN DECIDING THE FATE OF PREMIUM SALES A FOODTRADING COMPANY BASED IN NORTH MIAMI BEACH INVESTORS HAVE CLAIMED THEY POURED ABOUT 515 MILLION INTO THE COMPANY SINCE 1989 BUT AS MUCH AS 400 MILLION OF THAT ACCORDING TO REGULATORS APPEARS TO BE UNACCOUNTED FOR YESTERDAY MR SHOHAT URGED THE RECEIVER HARLEY TROPIN A MIAMI ATTORNEY TO ALSO FREEZE THE ASSETS OF THE PARTNERS WHO INVESTED MONEY IN THE COMPANY HE SAID 230 MILLION IS IN THE HANDS OF THE GENERAL PARTNERS MEANWHILE INTERVIEWS WITH INVESTORS REGULATORS AND ATTORNEYS CONTINUED TO SHED LIGHT ON PREMIUM SALES' OPERATIONS SALARIES AT THE COMPANY WHICH HAD BECOME A FAMILY AFFAIR WERE QUITE GENEROUS ACCORDING TO MARK RAYMOND AN ATTORNEY IN THE FIRM THAT HAS BEEN APPOINTED AS COUNSEL TO THE RECEIVER STACEY DEMET MR THENEN'S DAUGHTER WAS PAID 1150 A WEEK MORE THAN THE DIRECTOR OF HER DEPARTMENT MR THENEN'S SON HIS TWO SONSINLAW AND MR MORRIS'S SONINLAW WERE PAID SALARIES RANGING FROM 3750 TO 7000 A WEEK SEVERAL TIMES WHAT OTHER TOP MANAGERS WERE PAID AS PREVIOUSLY REPORTED A DOZEN AND POSSIBLY MORE PARTNERSHIPS WERE FORMED TO INVEST IN PREMIUM SALES WHICH SPECIALIZES IN THE BUSINESS OF DIVERTING GROCERY PRODUCTS SUCH CONCERNS BUY LARGE QUANTITIES OF GROCERYSTORE PRODUCTS IN ONE PART OF THE COUNTRY AND THEN SELL THEM AT A HIGHER PRICE IN ANOTHER IN MANY CASES PARTNERSHIPS RECEIVED INVOICES AND PURCHASE ORDERS FROM PREMIUM SALES SAYING THE COMPANY HAD BOUGHT SAY 2500 CASES OF PEANUT BUTTER ON THE PARTNERSHIP'S BEHALF IN SOME CASES THE INVESTORS WOULD BE GIVEN THE NAME AND PHONE NUMBER OF A PERSON WORKING AT THE SUPPLIER SO THAT TRANSACTIONS COULD BE VERIFIED BUT ATTORNEYS NOW EXAMINING THE COMPANY SAY MR THENEN MAY HAVE PLANTED PEOPLE IN A FEW LARGE SUPPLIERS TO HANDLE SUCH CALLS JAMES W BEASLEY A PALM BEACH ATTORNEY REPRESENTING 30 INVESTORS SAID SOME OF HIS CLIENTS WENT SO FAR AS TO HIRE INVESTIGATORS TO CONFIRM THE TRANSACTIONS BUT AS TIME PASSED THEIR SUSPICIONS EASED WE WERE ALL UNDER THE IMPRESSION WE HAD TIGHT CONTROL SAID ONE INVESTOR WHEN ASKED ABOUT THE SUPPOSED PLANTS IN COMPANIES MR SHOHAT THE ATTORNEY REPRESENTING MR THENEN SAID HE HAD NEVER HEARD OF SUCH ALLEGATIONS LAURIE GROSSMAN CONTRIBUTED TO THIS ARTICLE 9306150036 930615 BUSINESS BRIEF BCE INC COMPANY TO SELL 165 STAKE IN TALISMAN FOR 255 MILLION BCE INC SAID IT AGREED TO SELL ITS 165 STAKE IN TALISMAN ENERGY INC TO A GROUP OF CANADIAN SECURITIES HOUSES FOR NET PROCEEDS OF ABOUT 326 MILLION CANADIAN DOLLARS US255 MILLION BCE A MONTREAL TELECOMMUNICATIONS COMPANY SAID THE SALE OF ITS 109 MILLION TALISMAN COMMON SHARES AT A NET PRICE OF C30 A SHARE FITS ITS STRATEGY OF SELLING NONCORE ASSETS TALISMAN IS A CALGARY ALBERTA OIL AND GAS PRODUCER THE SECURITIES FIRMS BUYING THE SHARES FROM BCE ARE SCOTIAMCLEOD INC BURNS FRY LTD GORDON CAPITAL CORP NESBITT THOMSON LTD AND TORONTO DOMINION SECURITIES SEPARATELY BCE SAID IT AGREED TO SELL ITS LOTTERYTICKET MANUFACTURING UNITS TO GTC TRANSCONTINENTAL GROUP LTD FOR ABOUT 47 MILLION CANADIAN DOLLARS US367 MILLION IN CASH AND SHARES GTC TRANSCONTINENTAL A MONTREAL PRINTING COMPANY SAID IT WILL PAY FOR THE UNITS BABN TECHNOLOGIES INC AND BABN TECHNOLOGIES CORP PARTLY BY ISSUING C15 MILLION IN SUBORDINATED VOTING SHARES 9306150035 930615 BUSINESS BRIEF COOPER COS SECOND QUARTER'S LARGE LOSS REFLECTS COSTS OF LITIGATION COOPER COS NEW YORK REPORTED A LARGE FISCAL SECONDQUARTER LOSS REFLECTING AN INCREASE IN COSTS RELATED TO BREASTIMPLANT LITIGATION THE MEDICAL PRODUCTS COMPANY REPORTED A LOSS OF 198 MILLION OR 67 CENTS A SHARE ON REVENUE OF 237 MILLION COMPARED WITH NET INCOME OF 773000 OR ONE CENT A SHARE ON REVENUE OF 113 MILLION IN THE YEARAGO QUARTER ENDED APRIL 30 THE RECENT PERIOD INCLUDED A LOSS ON CONTINUING OPERATIONS OF 62 MILLION AND LOSS ON DISCONTINUED OPERATIONS OF 136 MILLION THE CHARGE AGAINST DISCONTINUED OPERATIONS REFLECTS THE INCREASE TO 209 MILLION ITS ACCRUAL FOR BREASTIMPLANT LAWSUITS APART FROM CURRENT DEFENSE COSTS TREATED UNDER CONTINUING OPERATIONS IT ALSO SAID IT ACQUIRED FROM COOPER LIFE SCIENCES INC ITS PREFERRED STOCK WITH A TOTAL LIQUIDATION PREFERENCE OF 161 MILLION IN RETURN IT GAVE THE COOPER LIFE SCIENCES SHARES OF A NEWLY CREATED PREFERRED WITH A TOTAL LIQUIDATION PREFERENCE OF NEARLY 35 MILLION 9306150034 930615 BUSINESS BRIEF LIVING CENTERS OF AMERICA INC HEALTHCARE COMPANY PLANS ACQUISITION OF VARICARE INC LIVING CENTERS OF AMERICA INC HOUSTON AGREED TO ACQUIRE NURSINGHOME OPERATOR VARICARE INC OF ROCHESTER NY FOR ABOUT 42 MILLION IN CASH AND STOCK LIVING CENTERS ALSO WILL ASSUME 27 MILLION OF VARICARE DEBT THE TRANSACTION INCLUDES 12 MILLION LIVING CENTERS COMMON SHARES AND CASH FROM BORROWING ON THE COMPANY'S CREDIT LINE VARICARE WITH 54 MILLION COMMON SHARES OUTSTANDING WILL RECEIVE 8 A SHARE IN CASH AND STOCK VARICARE OPERATES 21 LONGTERM HEALTHCARE FACILITIES LIVING CENTERS WHICH OPERATES 215 SUCH FACILITIES WILL INCREASE ITS NUMBER OF BEDS BY ABOUT 13 TO 21836 FROM 19367 THREE VARICARE INVESTORS WHO OWN 515 OF THE THE COMPANY'S STOCK AGREED TO VOTE THEIR SHARES FOR THE TRANSACTION WHICH IS SUBJECT TO NEGOTIATION OF A DEFINITIVE AGREEMENT LIVING CENTERS STOCK WAS QUOTED AT 2150 A SHARE UP 50 CENTS IN LATE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE VARICARE WAS QUOTED AT 7125 UP 1375 IN NATIONAL OVERTHECOUNTER TRADING 9306150033 930615 TECHNOLOGY BRIEF BARR LABORATORIES INC TWO GENERIC DRUGS RETURN AFTER MORE STUDIES FOR FDA BARR LABORATORIES INC A POMONA NY GENERICDRUG MAKER SAID IT IS REINTRODUCING TWO PRODUCTS AFTER A FOOD AND DRUG ADMINISTRATION REVIEW OF ADDITIONAL VALIDATION STUDIES THE TWO PRODUCTS WHICH ACCOUNT FOR ABOUT 15 MILLION IN SALES ARE ISONIAZID USP 300 MILLIGRAMS WHICH TREATS TUBERCULOSIS AND 25MILLIGRAM TABLETS OF DIPYRIDAMOLE A GENERIC VERSION OF BOEHRINGER INGELHEIM'S PERSANTINE USED IN HEARTVALVE REPLACEMENT THERAPY THE TWO DRUGS WERE AMONG THE 24 SUSPENDED AS A RESULT OF A COURT ORDER LAST FEBRUARY THE US DISTRICT COURT IN NEWARK NJ REQUIRED THE ADDITIONAL VALIDATION STUDIES TO ENSURE THAT THE GENERICDRUG MAKER FOLLOWS CONSISTENT DRUGMANUFACTURING PRACTICES THE TWO REINTRODUCED DRUGS FOLLOW ESP A GENERIC ANTIBIOTIC THAT TREATS MIDDLEEAR INFECTIONS IN CHILDREN AND THAT WAS REINTRODUCED IN MAY 9306150031 930615 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY JUNE 2 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9306150030 930615 INTERNATIONAL BRIEF KLM ROYAL DUTCH AIRLINES SOME UNIONS ACCEPT PACT TIED TO WORKER CONCESSIONS KLM ROYAL DUTCH AIRLINES SAID IT REACHED AN AGREEMENT WITH SOME UNIONS FOR CERTAIN CONCESSIONS BY ITS EMPLOYEES TO HELP RETURN THE MONEYLOSING CARRIER TO PROFITABILITY KLM WHICH IS 382 STATEOWNED SAID ITS LABOR UNIONS AGREED TO MODIFY THE CURRENT COLLECTIVE BARGAINING AGREEMENT TO OMIT THE PLANNED ANNUAL CONTRACT WAGE INCREASE FOR 1994 AS WELL AS TO ALLOW THE COMPANY TO FORGO ITS CONTRIBUTIONS TO THE EMPLOYEE PENSION FUND TO THE END OF NEXT YEAR FROM THIS PAST APRIL 1 BUT THE COMPANY WILL PAY THE PREVIOUSLY AGREEDUPON 25 CONTRACT WAGE INCREASE FOR 1993 EFFECTIVE JULY 1 BUT KLM ALSO NOTED THAT ITS PILOTS UNION HASN'T AGREED TO THE OVERALL CONCESSIONS AND THAT TALKS WITH THAT UNION BROKE DOWN LAST SATURDAY 9306150029 930615 INTERNATIONAL BRIEF NORTHERN TELECOM LTD COMPANY WINS CONTRACT TO BUILD FIBEROPTIC LINK NORTHERN TELECOM LTD SAID IT WON A 124 MILLION CONTRACT TO SUPPLY AND INSTALL A 1800 KILOMETERLONG UNDERSEA FIBEROPTIC LINK TO FOUR EUROPEAN COUNTRIES THE TELECOMMUNICATIONS EQUIPMENT CONCERN IN TORONTO SAID THE FIBEROPTIC NETWORK WHICH WILL CARRY VOICE AND DATA TELECOMMUNICATIONS USES FEWER OPTICAL AMPLIFIERS FOR A GIVEN DISTANCE THE AMPLIFIERS MAINTAIN THE STRENGTH OF THE SIGNAL WHILE IT IS BEING TRANSMITTED UNDERSEA THE CONTRACT FOR THE SYSTEM KNOWN AS RIOJA WAS AWARDED TO THE COMPANY'S LONDONBASED STC SUBMARINE SYSTEMS DIVISION BY SPAIN'S TELEFONICA GERMANY'S DEUTSCHE BUNDESPOST TELEKOM BELGIUM'S BELGACOM THE NETHERLANDS' PTT TELECOM DENMARK TELECOM AND BRITISH TELECOMMUNICATIONS AND MERCURY COMMUNICATIONS BOTH OF THE UK UP TO 36 OTHER TELECOMMUNICATIONS COMPANIES HAVE SAID THEY INTEND CARRYING THEIR TRAFFIC THROUGH THE RIOJA SYSTEM WHICH WILL LINK SPAIN BRITAIN BELGIUM AND THE NETHERLANDS THE SYSTEM IS EXPECTED TO BE COMPLETED IN 1994 9306150028 930615 BUSINESS BRIEF WESTINGHOUSE ELECTRIC CORP DEBT IS CUT BY 900 MILLION WITH FUNDS FROM ASSET SALE WESTINGHOUSE ELECTRIC CORP REPORTING THAT IT IS AHEAD OF SCHEDULE ON A RESTRUCTURING PLAN ANNOUNCED LATE LAST YEAR PAID OFF 900 MILLION OF THE 55 BILLION BORROWED ON ITS BANK CREDIT LINE THE PAYMENT WAS RAISED BY THE SALE OF ASSETS FROM ITS FINANCIALSERVICES UNIT THE PITTSBURGH PA MANUFACTURING AND BROADCASTING COMPANY'S BANK BORROWINGS NOW STAND AT 46 BILLION WESTINGHOUSE ALSO SAID IT HAS VOLUNTARILY REDUCED THE CEILING ON THE BANK CREDIT FACILITY FROM 6 BILLION TO 55 BILLION THE COMPANY SAID THE TWO ACTIONS WILL SAVE ABOUT 1 MILLION A MONTH IN FACILITY FEES AND INTEREST PAYMENTS WESTINGHOUSE WEIGHED DOWN BY BAD LOANS REPORTED A LOSS LAST YEAR OF 129 BILLION OR 381 A SHARE IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY WESTINGHOUSE CLOSED AT 15 DOWN 125 CENTS 9306150027 930615 TIG HOLDINGS INC TO CUT STAFF 12 IN RESTRUCTURING BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL TIG HOLDINGS INC THE FORMER TRANSAMERICA CORP PROPERTY AND CASUALTY UNIT SAID IT PLANS TO LAY OFF 500 WORKERS ABOUT 12 OF ITS WORK FORCE AS THE FIRST STEP OF A BROAD RESTRUCTURING TIG WHICH RAISED 1 BILLION IN AN INITIAL PUBLIC STOCK OFFERING IN APRIL SAID IT WILL ALSO LEAVE THE COMPLETION BOND BUSINESS AFTER EXISTING FILM AND TELEVISION PROJECTS ARE FINISHED THE MONEYLOSING COMPLETION BOND OPERATION WHICH ACCOUNTS FOR ABOUT 10 MILLION IN ANNUAL PREMIUMS COVERS LOSSES ARISING FROM PRODUCTION DELAYS AND COST OVERRUNS EARLIER THIS YEAR NEW YORKBASED TIG SAID IT EXPECTED TO TAKE A 75 MILLION SECONDQUARTER BEFORETAX CHARGE TO COVER SEVERANCE PAYMENTS AND OTHER RESTRUCTURING EXPENSES THE COMPANY ALSO SAID IT WANTS TO REDUCE ANNUAL PREMIUMS NOW ABOUT 16 BILLION BY 200 MILLION BY GETTING OUT OF UNPROFITABLE BUSINESSES YESTERDAY'S ANNOUNCEMENT MARKED THE FIRST TIME THE COMPANY GAVE ANY DETAILS ABOUT THE RESTRUCTURING I THINK WE'RE GOING TO SEE MORE ACTIVITY GOING FORWARD SAID LEHMAN BROTHERS ANALYST MICHAEL SMITH THIS IS THE FIRST STEP UNDER TRANSAMERICA THE OPERATION PURSUED A STRATEGY OF PROVIDING A BROAD ARRAY OF INSURANCE PRODUCTS TIG UNDER ITS NEW CHIEF EXECUTIVE OFFICER JON ROTENSTREICH PLANS TO FOLLOW A MORE FOCUSED APPROACH IN RECENT YEARS THE MOST SUCCESSFUL INSURERS HAVE BEEN THOSE THAT CONCENTRATE ON ONLY A FEW PRODUCT LINES THOSE THAT ARE SUCCESSFUL ARE THE ONES THAT ARE REALLY FOCUSED SAID STANDARD & POOR'S CORP ANALYST ALAN LEVIN IN ANNOUNCING THE LAYOFFS MR ROTENSTREICH SAID THE COMPANY'S EXPENSES WERE TOO HIGH RELATIVE TO ITS LEVEL OF BUSINESS THESE CHANGES ARE NECESSARY TO IMPROVE OPERATING PROFITABILITY AND TO MAINTAIN OUR SOLID FINANCIAL STRENGTH HE SAID TIG SAID THAT ITS WORK FORCE HAS ALREADY FALLEN BY 228 SINCE YEAR END TO 4022 PEOPLE THE LATEST ROUND OF LAYOFFS TO BE ACCOMPLISHED BY THE END OF SEPTEMBER WILL COME ON TOP OF EARLIER REDUCTIONS IN ITS ANNOUNCEMENT TIG SAID IT WILL LIKELY RELOCATE THE HEADQUARTERS OF ITS INSURANCE OPERATIONS NOW BASED IN WOODLAND HILLS CALIF NEAR LOS ANGELES ALTHOUGH THE COMPANY WILL MAINTAIN A MAJOR PRESENCE IN CALIFORNIA TIG SENIOR VICE PRESIDENT LOUIS PAGLIA SAID THE COMPANY WILL MOST PROBABLY CHOOSE A MIDWESTERN SITE FOR ITS NEW BASE TIG NOW HAS 70 OFFICES IT PLANS TO REDUCE THE NUMBER TO 20 OVER THE NEXT TWO YEARS THE PUBLIC OFFERING WAS ONE OF THE LARGEST EVER FOR AN INSURANCE COMPANY OF THE 1 BILLION IN PROCEEDS 296 MILLION WENT TO CAPITALIZE TIG THE REST WENT TO SAN FRANCISCOBASED TRANSAMERICA TIG'S ANNOUNCEMENT WAS MADE AFTER THE STOCK MARKET CLOSED YESTERDAY ON THE NEW YORK STOCK EXCHANGE YESTERDAY TIG CLOSED AT 2325 UP 25 CENTS 9306150026 930615 CREDIT RATINGS HIBERNIA CORP'S HIBERNIA NATIONAL BANK'S DEBT RATINGS WERE RAISED BY STANDARD & POOR'S CORP THE RATINGS SERVICE SAID THE BANK'S CERTIFICATES OF DEPOSIT AND MEDIUMTERM BANK NOTES WERE RAISED TO TRIPLEBMINUS/A3 FROM DOUBLEBMINUS/SINGLEB ADDITIONALLY S&P REMOVED THE CDS AND NOTES FROM ITS CREDITWATCH WHERE THEY WERE PLACED APRIL 12 S&P ATTRIBUTED THE UPGRADING TO SUBSTANTIALLY IMPROVED CAPITAL LEVELS STRONG LIQUIDITY AND A RETURN TO PROFITABILITY AT HIBERNIA NATIONAL BANK THE BANKING SUBSIDIARY OF NEW ORLEANSBASED HIBERNIA 9306150025 930615 ECONOMY NAFTA MAY GET LIFT FROM PACT ON TOXIC SITE LOS ANGELES MEXICO AGREE ON CLEANUP EASING ENVIRONMENTAL FEARS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL THE NORTH AMERICAN FREE TRADE AGREEMENT UNDER SIEGE IN CONGRESS IS ABOUT TO GET A BIG LIFT FROM A LOS ANGELES PROSECUTOR WHO ONCE FEARED THE TRADE PACT WOULD CREATE AN ENVIRONMENTAL NIGHTMARE THE PROSECUTOR DAVID ENG AND MEXICAN ENVIRONMENTAL OFFICIALS TODAY PLAN TO ANNOUNCE A NOVEL PLAN TO CLEAN UP AN ABANDONED LEADRECYCLING PLANT OUTSIDE TIJUANA MEXICO ANTINAFTA ACTIVISTS HAVE MADE THE HIGHLY POLLUTED SITE A SYMBOL OF MEXICO'S ENVIRONMENTAL FAILURES AND HAVE TAKEN HOUSE MAJORITY LEADER RICHARD GEPHARDT D MO AND OTHER OFFICIALS THERE AS PART OF THEIR CAMPAIGN MR ENG AN ENVIRONMENTAL PROSECUTOR IN THE LOS ANGELES COUNTY DISTRICT ATTORNEY'S OFFICE HAS USED A STATE LAW CLASSIFYING LEAD SLAG AS A HAZARDOUS WASTE TO NEGOTIATE TOXICWASTE CLEANUPS SOUTH OF THE BORDER IN THE DEAL RSR CORP A PRIVATELY OWNED DALLAS LEAD RECYCLER SAID IT WILL PAY 25 MILLION AND PLEAD NO CONTEST TO CHARGES OF IMPROPERLY TRANSPORTING LEAD WASTE FROM ITS LOS ANGELES SMELTER TO MEXICO OF THE 25 MILLION FINE 2 MILLION WILL BE USED TO CLEAN UP THE SITE CALLED ALCO PACIFICO DE MEXICO SAID LOS ANGELES AUTHORITIES AND THE COMPANIES INVOLVED LOS ANGELES DISTRICT ATTORNEY GIL GARCETTI ALSO PLANS TO DONATE 300000 OF THE FINE TO A FOUNDATION THAT PROVIDES MEDICAL CARE FOR BORDERAREA RESIDENTS AND THE MEXICAN GOVERNMENT WILL USE THE ALCO PACIFICO SITE'S RECOVERABLE LEAD VALUED AT BETWEEN 100000 AND 200000 TO HELP PAY BACK WAGES OF WORKERS AT THE PLANT WHICH CLOSED IN 1991 AFTER A STRIKE THE LOS ANGELES AUTHORITIES COULD HAVE PROSECUTED THE CASE ALONE BUT WITHOUT THE COOPERATION OF THE MEXICAN GOVERNMENT THE SETTLEMENT WOULDN'T HAVE HELPED CLEAN UP THE SITE OR PROVIDED BENEFITS TO PEOPLE IN THE AREA ALBERT LOSPINOSO RSR PRESIDENT SAID FIGHTING THE CHARGES WOULD COST AT LEAST AS MUCH AS PAYING THE FINE WE FELT WE COULD BEST MEET OUR GOAL BY HELPING THE PEOPLE OF MEXICO CLEAN UP A PROBLEM HE SAID MEANWHILE MORRIS KIRK PRESIDENT OF ALCO PACIFIC INC A CALIFORNIABASED COMPANY THAT OWNED THE MEXICAN FACILITY AND IS NOW DEFUNCT IS EXPECTED TO BE CHARGED SHORTLY WITH FELONY COUNTS OF UNLAWFULLY TRANSPORTING HAZARDOUS WASTE HE'LL PLEAD NOT GUILTY SAID MR KIRK'S LAWYER JEROME BUSCH IF HE HAD SUFFICIENT MONEY HE COULD AVOID CRIMINAL PROSECUTION AND PAY A FINE MR BUSCH SAID MR KIRK LIVES IN ORANGE COUNTY CALIF SEPARATELY PRESIDENT CLINTON ANNOUNCED THE FORMATION OF A 25MEMBER COUNCIL ON SUSTAINABLE DEVELOPMENT TO RECOMMEND ACTIONS TO MESH ENVIRONMENTAL AND ECONOMIC GOALS IN ACCORD WITH AGREEMENTS REACHED AT LAST YEAR'S ENVIRONMENTAL SUMMIT IN RIO DE JANEIRO THE COUNCIL WILL BE COCHAIRED BY DAVID BUZZELLI VICE PRESIDENT AND CORPORATE DIRECTOR OF ENVIRONMENT AT DOW CHEMICAL CO AND JONATHAN LASH PRESIDENT OF THE WORLD RESOURCES INSTITUTE ITS MEMBERS INCLUDE REPRESENTATIVES OF BUSINESS THE ENVIRONMENTAL AND CIVIL RIGHTS MOVEMENTS AND THE FEDERAL GOVERNMENT INCLUDING INTERIOR SECRETARY BRUCE BABBITT AND ENERGY SECRETARY HAZEL O'LEARY THE ANNOUNCEMENT CAME SHORTLY AFTER VICE PRESIDENT AL GORE DELIVERED A FIERY SPEECH TO THE UNITED NATIONS ON THE SUBJECT OF INTERNATIONAL ENVIRONMENTAL PROTECTION EMPLOYING RHETORIC OF THE TYPE IN HIS CONTROVERSIAL BOOK EARTH IN THE BALANCE BUT NOT HEARD FROM MR GORE SINCE HE JOINED THE CLINTON TICKET LAST SUMMERTHE VICE PRESIDENT CALLED FOR SLOWING WORLD POPULATION GROWTH CONTROLLING THE IMPACT OF THOUSANDS OF POWERFUL TECHNOLOGIES THAT ARE EXPLOITING THE EARTH AND BLOCKING THE DETERIORATION OF FRESHWATER SUPPLIES THE ANNOUNCEMENT OF THE ALCO PACIFICO CLEANUP SHOULD GREATLY BOOST PRONAFTA FORCES WHO ARGUE THAT ENVIRONMENTAL COOPERATION BETWEEN THE US AND MEXICO WILL IMPROVE AS THE TWO NATIONS ARE JOINED ECONOMICALLY SANTIAGO ONATE LABORDE MEXICO'S ATTORNEY GENERAL FOR THE ENVIRONMENT IS EXPECTED TO MAKE THAT PITCH AT THE LOS ANGELES ANNOUNCEMENT TODAY MR ENG WHO ONCE FEARED THAT THE TRADE AGREEMENT WOULD LEAD TO AN EXPLOSION IN ENVIRONMENTAL CRIMES NOW SAYS HE THINKS THE TRADE PACT BODES WELL FOR BINATIONAL ENFORCEMENT OF ENVIRONMENTAL LAWS EVEN ANTINAFTA ACTIVISTS WHO HAVE ORGANIZED AT LEAST A DOZEN TRIPS TO ALCO PACIFICO TO RALLY SUPPORT AGAINST THE PACT GRUDGINGLY PRAISED THE CLEANUP DEAL YOU HAVE TO APPLAUD THE COOPERATION BETWEEN THE US AND MEXICAN GOVERNMENT SAYS THEA LEE AN ADVISER TO GROUPS OPPOSING THE TRADE PACT BUT MS LEE A TRADE ANALYST AT THE ECONOMIC POLICY INSTITUTE A LABORBACKED THINK TANK IN WASHINGTON ADDED THAT MEXICO SHOULD WELCOME STRONGER RULES ON ENVIRONMENTAL ISSUES THAN THOSE CALLED FOR IN THE NAFTA TEXT ALCO PACIFICO HAS BECOME A GRIM REMINDER OF MEXICO'S DIFFICULTIES IN ENFORCING ENVIRONMENTAL STANDARDS THE 14ACRE LEADRECYCLING FACILITY IS IN THE ARID HILLS OUTSIDE TIJUANA NEXT TO DAIRIES THAT FEED THE CITY THE PLANT HAS BEEN SHUT FOR TWO YEARS THE RUSTING FURNACES ARE SURROUNDED BY HILLS OF LEAD ASH AND SLAG OPEN TO THE WIND DANIEL MUNO GARAY WHO OWNS ONE OF THE NEARBY DAIRIES SAID THAT OVER THE PAST DECADE 14 COWS SUDDENLY KEELED OVER AND DIED ALCO PACIFICO MANAGERS PAID FOR THE LOSSES WHEN THE ANIMALS FIRST STARTED DYING THE DAIRY OWNER NAMED HIS PRICE FOR THE ANIMALS MR MUNO SAID IN AN INTERVIEW LAST YEAR THE SECOND TIME THEY WOULD JUST GO OVER TO ALCO PACIFICO FOR THE MONEY OCCASIONALLY MEXICAN REGULATORS VISITED ALCO PACIFICO MR MUNO SAID PLANT MANAGERS WOULD PROMISE TO INSTALL NEW EQUIPMENT HE SAID BUT THE FACTORY WOULD START RUNNING AT NIGHT TO AVOID THE REGULATORS' ATTENTION 9306150024 930615 BUSINESS BRIEF LOCKHEED CORP AEROSPACE CONCERN FORESEES NO LARGE ACQUISITIONS SOON LOCKHEED CORP CHAIRMAN DANIEL TELLEP SAID THE COMPANY WON'T PURSUE ANY LARGESCALE ACQUISITIONS UNTIL EARLY 1996 WHEN IT WILL HAVE REDUCED ITS HEAVY DEBT FOLLOWING THE RECENT 152 BILLION ACQUISITION OF GENERAL DYNAMICS CORP'S FIGHTERPLANE BUSINESS MR TELLEP SPEAKING AT THE PARIS AIR SHOW SAID THE DEBTTOEQUITY RATIO OF THE CALABASAS CALIF AEROSPACE COMPANY HAS RISEN TO 48 FROM 28 FOLLOWING THAT ACQUISITION WELL ABOVE LOCKHEED'S TARGET OF 33 MR TELLEP SAID HE DIDN'T RULE OUT SMALL ACQUISITIONS OF WELL UNDER 25 MILLION OR SO OVER THE NEXT FEW YEARS HOWEVER 9306150023 930615 LEISURE & ARTS TOP TEN SINGLES / ALBUMS CONSTRUCTED BY BILLBOARD MAGAZINE FROM DATA PROVIDED BY BROADCAST DATA SYSTEMS AND SOUNDSCAN INC AND BASED ON A NATIONAL SAMPLE OF RETAIL REPORTS AND RADIO PLAY LISTS 9306150022 930615 YEN MASTER JAPAN'S CENTRAL BANKER BEGINS TO WIN PRAISE FOR SAVING ITS SOUL' DEFLATING BUBBLE ECONOMY' MIENO AVOIDED A BIG SPLIT BETWEEN RICH AND POOR MANY STILL WANT HIM TO QUIT BY CLAY CHANDLER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO CENTRAL BANKERS MUST OFTEN PLAY THE HEAVY BUT FEW HAVE EMBRACED THE ROLE WITH YASUSHI MIENO'S GUSTO DAYS AFTER BECOMING GOVERNOR OF THE BANK OF JAPAN IN LATE 1989 MR MIENO YANKED UP INTEREST RATES SENDING THE WORLD'S SECONDLARGEST ECONOMY INTO A TAILSPIN AND BY LOWERING RATES ONLY SLOWLY SINCE THEN HE HAS CHOKED JAPAN'S RECOVERY AND CURBED GLOBAL ECONOMIC GROWTH THE UPSHOT GOVERNOR MIENO'S UNPOPULARITY IS LEGENDARY A TOKYO TABLOID SAID RECENTLY THE CATCALLS FROM INDUSTRIAL AND FINANCIAL CIRCLES ARE INCREASING DAILY MR MIENO HAS RECEIVED CRANK CALLS AND BOMB THREATS BUSINESS LEADERS DENOUNCE HIM AS PIGHEADED AND OUTOFTOUCH POLITICIANS HAVE THREATENED TO HAVE HIM SACKED A LOT OF MY FRIENDS WENT BANKRUPT BECAUSE OF HIS TIGHTMONEY POLICY COMPLAINS KAZUHIKO NISHI WHOSE COMPUTER SOFTWARE FIRM ASCII CORP IS STRUGGLING MR MIENO IS IN A POSITION LIKE GOD IS IT GOD'S POLICY TO FORGIVE PEOPLE OR TO KILL PEOPLE BUT IS THE HARDHEADED GOVERNOR A VILLAIN OR A HERO AS JAPAN'S ECONOMY BEGINS TO SHOW FAINT SIGNS OF STIRRING FROM ITS SLUMP A NEW VIEW OF MR MIENO IS TAKING HOLD ADMIRERS SAY HE MAY WELL HAVE STEERED THIS NATION OUT OF CHAOS THAT IN EFFECT HE TOLD JAPAN INC TO SIT UP STRAIGHT AND EAT ITS VEGETABLES HE WILL BE REMEMBERED AS ONE OF THE GREATEST GOVERNORS IN BANK OF JAPAN HISTORY CONTENDS YUKIO NOGUCHI AN ECONOMIST AT HITOTSUBASHI UNIVERSITY MORE IMPORTANT SOME SAY MR MIENO WILL BE CREDITED WITH RESCUING JAPANESE SOCIETY FROM THE MATERIALISTIC ABYSS INTO WHICH THEY THINK OTHER CAPITALIST COUNTRIES HAVE FALLEN JAPAN'S ASTONISHING EXPLOSION OF WEALTH IN THE 1980S CREATED DIVISIONS THIS MIDDLECLASS LAND HAD NEVER KNOWN MR MIENO'S STINGY POLICY STOPPED ALL THAT IN A PAINFUL BIT OF SOCIAL ENGINEERING THAT GAVE JAPAN A CHANCE TO MEND ITS WAYS IF THE PAST IS PROLOGUE MR MIENO WON'T HESITATE TO USE MONETARY POLICY TO REDIRECT SOCIETY IN THE FUTURE WHETHER OR NOT IT RATTLES BUSINESSPEOPLE IN JAPAN AND ECONOMIES AROUND THE WORLD HE AND OTHER BANK OF JAPAN OFFICIALS MAKE CLEAR THAT IN THE WAKE OF THIS NATION'S CONVULSIVE BOOM AND BUST THEY HAVE COME TO SEE THEMSELVES AS GUARDIANS NOT JUST OF THE NATION'S CURRENCY BUT TO A LARGE EXTENT OF ITS SOUL LISTEN FOR EXAMPLE TO HOW MR MIENO SPEAKING IN A RARE INTERVIEW IN PANELED CHAMBERS ATOP THE BANK'S TOKYO HEADQUARTERS SUMS UP JAPAN'S ERA OF SPECULATIVE EXCESS THE GIDDY EXPANSION OF THE LATE 1980S UNDERMINED THE STABILITY AND SOUNDNESS OF JAPANESE SOCIETY BY WEAKENING THE ETHOS OF LABOR THE NOTION OF WORKING BY THE SWEAT OF YOUR BROW THE BOOM HE CONTENDS HASTENED A DECLINE IN MORALS AND FOSTERED INEQUALITIES IN THE DISTRIBUTION OF WEALTH ADDS ANOTHER TOP BANK OF JAPAN OFFICIAL RISING ASSET PRICES DIVIDED SOCIETY INTO TWO CAMPS THE HAVES AND HAVENOTS JAPAN HAD BEEN AN EGALITARIAN SOCIETY IN THE PAST THAT WAS CLOSE TO THE IDEAL SOCIETY IMAGINED BY KARL MARX BUT THE BOOM BROUGHT NEW ELEMENTS TO JAPANESE LIFE SHORTHAND FOR AVARICE MR MIENO'S DETERMINATION TO PURGE THE NATION OF THOSE ELEMENTS IS BEING PUT TO THE TEST LAST WEEK THE BANK OF JAPAN'S QUARTERLY SURVEY SHOWED BUSINESS CONFIDENCE STUCK AT ITS LOWEST POINT IN 17 YEARS SOME ECONOMISTS THINK GOVERNMENT FIGURES ON ECONOMIC GROWTH DUE OUT LATER THIS MONTH WILL SHOW JAPAN'S GROSS NATIONAL PRODUCT CONTRACTED IN THE FIRST THREE MONTHS OF 1993 PUSHING THE ECONOMY INTO A DOUBLE DIP MEANWHILE THE YEN WHICH HAS GAINED MORE THAN 15 AGAINST THE DOLLAR THIS YEAR IS LIKELY TO EDGE HIGHER EXPERTS SAY POUNDING JAPANESE EXPORTERS IF ALL THIS GLOOM PERSISTS MR MIENO WILL FACE ENORMOUS PRESSURE TO PARE THE DISCOUNT RATE THE FEE THE BANK CHARGES ON LOANS TO PRIVATE LENDERS BELOW ITS CURRENT 25 WHICH MATCHES ITS LOWEST LEVEL EVER BUT MR MIENO GIVES NO HINT THAT HE IS EAGER TO DO SO SOON JAPAN'S RECESSIONBATTERED ECONOMY HE SAYS IS IN A DELICATE ADJUSTMENT PHASE THAT IS NOT ONLY INEVITABLE BUT DESIRABLE UNLESS WE GO THROUGH THIS KIND OF PROCESS IT IS NOT POSSIBLE TO THINK ABOUT THE NEXT PHASE OF OUR ECONOMIC GROWTH MR MIENO'S AVERSION TO LOWER INTEREST RATES BESPEAKS THE TRAUMA OF THE ECONOMY'S RECENT PAST IN 1986 THE BANK OF JAPAN UNDER HIS PREDECESSOR BEGAN AN EASYMONEY POLICY THAT BEGAT A SPENDING BINGE AND THE BUBBLE ECONOMY OF INFLATED STOCK AND REALESTATE PRICES BETWEEN OCTOBER 1985 AND DECEMBER 1989 THE NIKKEI STOCK AVERAGE TRIPLED AND MANUFACTURERS PUMPED NEW SHARES INTO THE MARKET AND SPLURGED ON PLANT AND EQUIPMENT ALTHOUGH CONSUMER PRICES WEREN'T RISING FASTER THAN 3 A YEAR LAND PRICES IN TOKYO AND OSAKA NEARLY TRIPLED AND BANKERS LENT FREELY TO PROPERTY SPECULATORS PROPERTY OWNERS HAD IT MADE A TOKYO MAGAZINE RAN A POPULAR SERIES PROFILING SINGLE WOMEN WHO STOOD TO INHERIT A FAMILY HOME FOR THOSE WHO DIDN'T OWN PROPERTY NO AMOUNT OF EFFORT SEEMED LIKELY TO CLOSE THE EVERWIDENING GAP THE PRICE SPIRAL IN ASSETS NURTURED A SHIFT IN PERSONAL VALUES AS EMBODIED IN AN INCREASINGLY COMMONPLACE TENDENCY AMONG INDIVIDUALS AND COMPANIES ALIKE TO WORSHIP MONEY ABOVE ALL ELSE SAID A MINISTRY OF FINANCE COMMISSION IN AN UNUSUAL REPORT THIS YEAR REASSESSING MACROECONOMIC POLICIES DURING THE LATE 1980S THE ETHICAL FABRIC OF SOCIETY ALSO APPEARS TO HAVE SUFFERED IT FELL TO MR MIENO A MAN GROOMED FOR THE GOVERNORSHIP FOR MORE THAN 20 YEARS TO CLOSE DOWN THE PARTY HIS PREDECESSOR SATOSHI SUMITA HAD SLASHED THE DISCOUNT RATE TO 25 BY FEBRUARY 1987 AND FOR THE NEXT TWO YEARS LEFT THE MONETARY FLOODGATES WIDE OPEN IN 1989 MR SUMITA STARTED CLOSING THE GATES AGAIN BUT IT WAS MR MIENO WHO SLAMMED THEM SHUT IN THE 10 MONTHS FOLLOWING HIS APPOINTMENT HE CRANKED THE DISCOUNT RATE BACK UP TO 6 AS I LOOK BACK ON THAT PHASE I MUST SAY I FEEL REGRETFUL MR MIENO SAYS NOW WE COULD HAVE TAKEN ACTION AGAINST THE BOOM A LITTLE EARLIER FRIENDS SAY THE 69YEAROLD MR MIENO'S AUSTERE POLICIES AS GOVERNOR PARTLY REFLECT HIS CHARACTER HE WAS BORN TO A WELLHEELED TOKYO FAMILY AND SPENT HIS CHILDHOOD IN MANCHURIA WHERE HIS FATHER RAN A BANK BUT MR MIENO LEARNED FRUGALITY AFTER THE WAR WHICH STRIPPED HIS FAMILY OF ITS WEALTH AS A STUDENT AT TOKYO UNIVERSITY HE PEDDLED SOAP AND BUTTER TO SUPPORT HIS FAMILY AND LIVED IN A STABLE OF SUMO WRESTLERS RUN BY THE FATHER OF A FRIEND THE GOVERNOR REMAINS AN ARDENT SUMO FAN HE SERVES AS A COUNSELOR IN THE SECRETIVE NATIONAL SUMO ASSOCIATION HE HAS AN ASSISTANT BRIEF HIM IN THE EVENINGS ON THE RESULTS OF THE DAY'S MATCHES IN CONTRAST TO HIS SOBER POLICIES THOUGH HE IS RENOWNED AS A LUSTY DRINKER HE STILL PAYS FREQUENT VISITS TO FAVORITE WATERING HOLES IN SHITAMACHI THE OLD SECTION OF TOKYO AFTER HE JOINED THE BANK OF JAPAN HIS CAUTIOUS INSTINCTS WERE REINFORCED BY THE UNHAPPY FATE OF HIS MENTOR TADASHI SASAKI WHO WAS GOVERNOR BETWEEN 1965 AND 1974 MR SASAKI WAS HAILED AS ONE OF THE BANK'S BRIGHTEST STARS UNTIL POWERFUL POLITICIANS BULLIED HIM INTO LAX MONETARY POLICIES THAT SPARKED 20AYEAR INFLATION AS DEPUTY GOVERNOR UNDER MR SUMITA MR MIENO FREQUENTLY OBSERVED THAT JAPAN'S ECONOMY WAS SITTING ON A TINDERBOX MR MIENO SAYS A SENIOR US OFFICIAL WHO HAS DEALT WITH HIM HAS A VERY SIMPLE SPARTAN VIEW OF THE WORLD AND IS ABSOLUTELY CONVINCED THAT HIS CAUTIOUS MONETARY PRINCIPLES ARE CORRECT MANY OBSERVERS ALSO VIEW MR MIENO'S RIGID POLICIES AS A REACTION TO THE WAY MR SUMITA ALLOWED THE BANK OF JAPAN TO BE BUFFALOED IN THE 1980S LEGALLY JAPAN'S CENTRAL BANK IS A PALE SHADOW OF THE US FEDERAL RESERVE IT IS GOVERNED BY WORLD WAR II LEGISLATION THAT BORROWED LANGUAGE ORIGINALLY DRAFTED FOR THE REICHSBANK OF NAZI GERMANY THE LEGISLATION WHICH BANK OF JAPAN OFFICIALS HAVE REPEATEDLY SOUGHT TO HAVE CHANGED GIVES THE GOVERNMENT NEARCOMPLETE CONTROL IT STIPULATES THAT BANK OPERATIONS MUST BE CONDUCTED PURSUANT TO THE GOVERNMENT'S POLICIES AND PERMITS THE GOVERNMENT TO DISMISS BANK OFFICIALS INCLUDING THE GOVERNOR THE FINANCE MINISTRY HAS FURTHER STRENGTHENED ITS HAND BY INSISTING THAT THE GOVERNORSHIP A FIVEYEAR POST ALTERNATE BETWEEN A CAREER BANK OF JAPAN OFFICIAL AND A RETIRED FINANCE MINISTRY BUREAUCRAT MANY ECONOMISTS BELIEVE THAT THE MINISTRY USED ITS LEVERAGE OVER THE BANK TO PUSH IT INTO THE EASYMONEY POLICY THAT BEGAN IN 1986 JAPAN WAS UNDER HEAVY PRESSURE FROM THE US WHICH THEN AS NOW WAS WORRIED ABOUT ITS TRADE DEFICIT TO INCREASE DOMESTIC DEMAND WHETHER BY DESIGN OR NOT SLASHING THE DISCOUNT RATE SPARED THE FINANCE MINISTRY FROM HAVING TO INCREASE PUBLIC SPENDING TO STIMULATE THE ECONOMY AND THUS ABANDON ITS GOAL OF REDUCING JAPAN'S BUDGET DEFICIT FOR SOME YEARS THE BANK OF JAPAN HAS SOUGHT TO COUNTER ITS LEGAL DEPENDENCE ON THE FINANCE MINISTRY BY ANOINTING FUTURE GOVERNORS YEARS IN ADVANCE AND CAREFULLY NURTURING THEM WITH TRAINING AND EXPERIENCE MR MIENO FOLLOWED THAT PATH THESE DAYS EVEN FINANCE MINISTRY OFFICIALS CONCEDE THAT THE BANK HAS ACHIEVED GREATER AUTONOMY WITH MR MIENO AT THE HELM MR MIENO INSISTS THAT HE RUNS MONETARY POLICY DURING MY TERM HE SAYS THERE HAS NOT BEEN A SINGLE INSTANCE IN WHICH THE DISCOUNT RATE WAS CHANGED AGAINST MY WILL BUT THAT IS JUST WHAT UPSETS MANY JAPANESE EXECUTIVES MR MIENO HAS SOUGHT TO AVOID BEING INFLUENCED BY THE GOVERNMENT SAYS MASARU TAKAGI A FUJI BANK ECONOMIST BUT THE RESULTS HAVE NOT ALWAYS BEEN SO GOOD THE HIGHER YEN AND THE LOW INFLATION GIVE MR MIENO AMPLE ROOM TO LOWER RATES BUT HE CONTINUES TO PREDICT AN ECONOMIC RECOVERY THIS FALL A PREDICTION THAT MANY INTERPRET AS AN INDICATION HE PLANS TO HOLD THE LINE BANK OFFICIALS ARE ANXIOUS NOT TO REPEAT THE BLUNDER OF KEEPING RATES LOW DESPITE SIGNS OF A REBOUNDING ECONOMY THIS TIME AROUND THE BANK OF JAPAN WILL RAISE THE DISCOUNT RATE WITHOUT DELAY PERHAPS EARLY NEXT YEAR SAYS YOSHIO SUZUKI A FORMER DIRECTOR OF THE BANK ALTHOUGH MR MIENO SAYS THE BANK DOESN'T FORMALLY TRACK PUBLIC MORES AND INCOME DISTRIBUTION AS IT CONSIDERS POLICY THAT HE SAYS IS UP TO PHILOSOPHERS AND SOCIOLOGISTS DISCUSSIONS WITH TOP BANK OFFICIALS MAKE CLEAR THAT MR MIENO AND HIS COLLEAGUES SEE THEMSELVES AS MUCH MORE THAN BLOODLESS TECHNOCRATS THE HAPPINESS OF PEOPLE IN SOCIETY ONE SAYS IS SOMETHING NEVER FAR FROM OUR MINDS SUCH SENTIMENTS INFURIATE THE CENTRAL BANK'S ANTAGONISTS THE PROBLEM WITH THE BANK OF JAPAN IS THAT IT DOESN'T PAY ENOUGH ATTENTION TO THE REAL ECONOMY SAYS THE HEAD OF A LARGE FINANCIAL INSTITUTION AND ONE OF MR MIENO'S LONGTIME DRINKING COMPANIONS MIENO'S POLICIES ARE TOO COLORED BY HIS VALUE JUDGMENTS TO BE SURE BANK OF JAPAN OFFICIALS HAVE ALWAYS TAKEN A MORE PRAGMATIC APPROACH TO MONETARY POLICY THAN THEIR WESTERN COUNTERPARTS FEW OF THEM ARE FORMALLY TRAINED ECONOMISTS AND THE RANGE OF INDICATORS THEY CONSIDER IN SETTING MONETARY POLICY HAS BECOME EVEN MORE ECLECTIC SINCE THE FINANCIAL BUBBLE THE BANK HAS PLACED NEW EMPHASIS ON MONEYSUPPLY NUMBERS AND ASSET PRICES AS WELL AS STANDARD INDICATORS SUCH AS CONSUMER PRICES SOME ANALYSTS VIEW THIS AS A HEALTHY FLEXIBILITY BUT MANY WHO NOTE THAT THE BANK SEEMS TO WORRY ABOUT ASSET PRICES AND THE MONEY SUPPLY ONLY WHEN THEY RISE AND NOT WHEN THEY FALL DERIDE THE APPROACH AS UNDISCIPLINED AND ARBITRARY FOR BANK OF JAPAN OFFICIALS TO THINK IN SUCH A WAY IS A KIND OF SUICIDE FOR JAPAN SAYS MAKOTO UTSUMI A FORMER VICE MINISTER FOR INTERNATIONAL FINANCE BANK OF JAPAN OFFICIALS GROUSES A DISGRUNTLED LENDER LOVE A DEPRESSION BUT AT LEAST FOR NOW MR MIENO STANDS FAST I HAVE BECOME A SCAPEGOAT FOR PEOPLE WHO HAVE SUFFERED PAIN FROM THE BURSTING BUBBLE HE SAYS I HAVE BEEN CALLED MANY NICKNAMES AND RECEIVED A LOT OF CRITICISM I DON'T WISH TO SOUND SELFRIGHTEOUS BUT I'M NOT GOING TO CHANGE MY BELIEFS 9306150021 930615 TECHNOLOGY APPLE COMPUTER SETS PRICE CUTS REBATES ON SOME MACHINES CUPERTINO CALIF APPLE COMPUTER INC IN A MOVE TO KEEP UP WITH PERSISTENT PRICE WARS IN THE PERSONALCOMPUTER MARKET SAID IT IS CUTTING PRICES AND OFFERING REBATES ON SOME MACINTOSH MACHINES AND OTHER HARDWARE APPLE SAID IT SLASHED PRICES AS MUCH AS 13 ON SOME COMPUTERS AND AS MUCH AS 26 ON PERIPHERALS SUCH AS PRINTERS AND MONITORS IN ADDITION TO OFFERING REBATES OF AS MUCH AS 350 THE BASIC MACINTOSH CENTRIS 610 FOR EXAMPLE WILL NOW BE SOLD AT A SUGGESTED RETAIL PRICE OF 1769 DOWN FROM 1969 IN ADDITION APPLE IS OFFERING A 150 REBATE ON THE MODEL THE PRICE CUTS COME ON THE HEELS OF APPLE'S ANNOUNCEMENT LAST WEEK THAT DUE IN PART TO PCMARKET PRICE WARS ITS EARNINGS FOR THE SECOND HALF OF THE YEAR ENDING SEPT 25 WILL BE BELOW THE YEAREARLIER 188 A SHARE THE COMPANY SAID THAT UNIT SHIPMENTS GREW 35 IN THE FIRST HALF OF THE FISCAL YEAR BUT THAT CUTTHROAT PRICE COMPETITION HAS THROTTLED MARGINS SOME OF APPLE'S MOST POPULAR DESKTOP MODELS HAD BEEN PRICED ROUGHLY 500 MORE THAN COMPARABLE MACHINES USING INTEL CORP'S 486 MICROPROCESSOR AND ABOUT 800 HIGHER THAN COMPARABLE COMPUTERS USING INTEL'S 386 CHIP THE PRICE CUTS COMBINED WITH THE REBATES WHICH ARE AVAILABLE THROUGH SEPT 30 APPEAR TO ELIMINATE ABOUT 70 OF THE PRICE DISPARITY WITH 486 DESKTOPS AND ABOUT HALF THE GAP WITH 386 MACHINES THE PROGRAM IS DESIGNED TO HEAVILY PROMOTE APPLE COMPUTERS BUNDLED WITH CDROM UNITS WHICH PLAY A WIDE VARIETY OF EDUCATIONAL PROGRAMS FOR EXAMPLE THE TOTAL PRICE REDUCTION ON A CENTRIS WITH A CDROM IS 500 OR 17 THE COMPANY ALSO SLASHED PRICES ON ITS POWERBOOK 180 SERIES OF PORTABLES BY 510 OR 11 TO 12 9306150020 930615 BUSINESS BRIEF CIRCUIT CITY STORES INC PROFIT ROSE 51 IN 1ST PERIOD ENDED MAY 31 ON SALES RISE CIRCUIT CITY STORES INC REPORTED A 51 EARNINGS INCREASE FOR THE FIRST QUARTER ENDED MAY 31 THE LEADING SPECIALTY RETAILER OF CONSUMER ELECTRONICS AND APPLIANCES BASED IN RICHMOND VA CITED A SUCCESSFUL GEOGRAPHIC EXPANSION PROGRAM AND STRONG PERSONAL COMPUTER SALES YESTERDAY SHARES OF THE COMPANY CLOSED AT 32875 UP 75 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE EARNINGS TOTALED 172 MILLION OR 18 CENTS A SHARE COMPARED WITH 114 MILLION OR 12 CENTS A SHARE A YEAR EARLIER SALES ROSE 24 TO 799 MILLION FROM 6448 MILLION COMPARABLESTORE SALES INCREASED 9 CIRCUIT CITY OPENED SIX ADDITIONAL SUPERSTORES IN THE BOSTON AREA IN THE QUARTER 9306150019 930615 BUSINESS BRIEF HILTON HOTELS CORP TELEPHONE CALLINGCARD FEES ELIMINATED AT SOME HOTELS HILTON HOTELS CORP IS ELIMINATING TELEPHONEACCESS FEES ON HALF ITS PROPERTIES FOR CALLS MADE WITH LONGDISTANCE CALLING CARDS THE CHANGE EFFECTIVE JULY 1 WILL SAVE GUESTS 75 CENTS TO 1 A CALL VIRTUALLY ALL HOTELS DEFRAY TELEPHONEEQUIPMENT COSTS BY IMPOSING ACCESS FEES ON LOCAL AND LONGDISTANCE CALLS MANY GUESTS HOWEVER INCORRECTLY ASSUME THEIR CALLINGCARD ENABLES THEM TO BYPASS THE FEE HILTON IN BEVERLY HILLS CALIF SAYS CALLINGCARD FEES ARE A MAJOR SORE POINT AMONG GUESTS SOME OF WHOM USE PAY PHONES IN THE LOBBY TO AVOID THE CHARGE HILTON SAYS 53 OF ITS ROOMS WORLDWIDE WILL HAVE THE FEE ELIMINATED ABSORBING THE COSTS OF THE CALLS WILL COST THE HOTEL COMPANY SEVERAL MILLION DOLLARS HILTON SAID IT WILL CONTINUE TO PASS ALONG ACCESS FEES ON ALL OTHER CALLS 9306150018 930615 MARKETING & MEDIA GTE BEGINS PROJECT TO DEVELOP NETWORKS FOR MULTIMEDIA ROLE NEW YORK GTE CORP LAUNCHED A PROJECT TO BUILD 50 FIBEROPTIC RING NETWORKS IN 12 STATES TO PREPARE ITS CUSTOMERS FOR MULTIMEDIA SERVICES GTE'S PROJECT WHICH A COMPANY SPOKESMAN CONFIRMED IS EXPECTED TO COST MORE THAN 200 MILLION AND WILL INCLUDE GTE TELEPHONE OPERATIONS IN CALIFORNIA FLORIDA AND TEXAS HE SAID GTE PLANNED TO ANNOUNCE THE PROJECT THIS MORNING WHILE GTE BASED IN STAMFORD CONN DOESN'T PLAN ANY ANNOUNCEMENTS ABOUT NEW CONSUMER SERVICES THE PROJECT DOES LAY THE GROUNDWORK FOR FUTURE ADVANCED NETWORK OFFERINGS TO CONSUMERS AND BUSINESSES THESE THE SPOKESMAN SAID WOULD COMPETE WITH CABLE TELEVISION AND OTHER ALTERNATIVE LOCAL COMMUNICATIONS NETWORKS AND SERVICES THIS IS JUST THE FIRST STEP HE SAID THE NEW NETWORKS WILL USE ADVANCED FIBEROPTIC TRANSMISSION GEAR CALLED SYNCHRONOUS OPTICAL NETWORK SONET EQUIPMENT MAKES IT EASIER FOR PHONE COMPANIES TO PASS VOICE DATA AND VIDEO TRAFFIC TO PHONE CUSTOMERS AT HIGHSPEED THROUGH MULTIPLE TYPES OF SWITCHES AND COMPUTERIZED NETWORK MANAGEMENT SYSTEMS IT ALSO LETS CORPORATE CUSTOMERS SET THEIR OWN TRANSMISSION SPEEDS WHEN COMMUNICATING VIA COMPUTER LOCAL CONSUMER AND BUSINESS LINES WOULD EVENTUALLY TAP INTO THESE RING NETWORKS WHICH WILL ACT AS A LOCAL BACKBONE HIGHWAY FOR THE NEW SERVICES THE SPOKESMAN SAID THE GTE SPOKESMAN CONFIRMED THAT AMERICAN TELEPHONE & TELEGRAPH CO WILL PROVIDE MUCH OF THE EQUIPMENT FOR THE PROJECT ALONG WITH A SECOND SUPPLIER WHICH HE DECLINED TO IDENTIFY GTE SPENT ABOUT 28 BILLION LAST YEAR ON ITS NETWORK MOSTLY FOR EQUIPMENT UPGRADING AND MAINTENANCE 9306150017 930615 BUSINESS BRIEF NEWELL TO BUY GOODY FOR 2475 A SHARE OR ABOUT 165 MILLION FREEPORT ILL NEWELL CO CONTINUED ITS GROWTHTHROUGHACQUISITION STRATEGY WITH A 2475ASHARE PACT TO ACQUIRE GOODY PRODUCTS INC THE PRICE TO WHICH GOODY'S BOARD TENTATIVELY AGREED VALUES THE KEARNY NJ MAKER OF HAIR ACCESSORIES AT ABOUT 165 MILLION NEWELL WHICH SELLS RETAILERS A WIDE VARIETY OF HOUSEHOLD CONSUMER PRODUCTS ALREADY HOLDS AN ABOUT 13 GOODY STAKE IN LATE TRADING ON THE NATIONAL OVERTHECOUNTER MARKET YESTERDAY GOODY SHARES JUMPED 5125 OR 28 TO CLOSE AT 2350 UNDER TERMS OF THE AGREEMENT IN PRINCIPLE GOODY IS TO PROVIDE CONFIDENTIAL INFORMATION FOR NEWELL'S REVIEW AND NEWELL AGREED NOT TO BUY ANY ADDITIONAL GOODY SHARES FOR A YEAR EXCEPT THROUGH A TENDER OFFER FOR ALL THE COMPANY'S OUTSTANDING SHARES THE PROPOSED TRANSACTION IS SUBJECT AMONG OTHER THINGS TO THE REACHING OF A DEFINITIVE AGREEMENT THE AGREEMENT ALSO CONTAINS CONVENTIONAL LOCKUP PROVISIONS WHICH RESTRICT GOODY'S ABILITY TO SOLICIT A BETTER OFFER AND PROVIDE FOR A 7 MILLION FEE IN THE EVENT THAT A HIGHER RIVAL BID SURFACES AND IS ACCEPTED BY GOODY IN 1992 GOODY RECORDED A NET LOSS OF 168 MILLION OR 254 A SHARE HELPING IT INTO THE DEFICIT WERE A 227 MILLION RESTRUCTURING CHARGE AND A 17 MILLION CHARGE FOR ACCOUNTING CHANGES SALES LAST YEAR WERE 2181 MILLION IN ADDITION TO BARRETTES PONYTAIL HOLDERS AND THE LIKE GOODY'S OPERATIONS MAKE OTHER CONSUMER PRODUCTS INCLUDING OPTIRAY SUNGLASSES AND ACE COMBS NEWELL WHICH TYPICALLY BUYS A SMALL INITIAL STAKE BEFORE INITIATING ACQUISITION TALKS IN RECENT YEARS HAS ACQUIRED A STRING OF MIDSIZE COMPANIES 9306150016 930615 SWEEPING IRS INITIATIVE AIMS TO CURB ABUSES OF RULES ON TAXEXEMPT BONDS BY JOHN CONNOR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE UNVEILED A SWEEPING INITIATIVE TO CURB ABUSES OF LAWS AND REGULATIONS GOVERNING TAXEXEMPT BONDS INCLUDING ARBITRAGE WHERE THE MOST FLAGRANT ABUSES HAVE OCCURRED WE'VE DECIDED MORE IS NEEDED SAID MARCUS OWENS A SENIOR IRS OFFICIAL HE SAID THAT IRS COMMISSIONER MARGARET RICHARDSON HAS SIGNALED SHE WANTS TOUGH ENFORCEMENT AND THAT THE INITIATIVE WHICH COVERS THE ENTIRE SECTION OF THE TAX CODE RELATING TO MUNICIPAL BONDS WILL MEAN MORE DOLLARS AND MORE PEOPLE FOR YEARS THE IRS'S MUNI ENFORCEMENT ACTIVITIES HAVE BEEN CRITICIZED AS INEFFECTIVE PARTICULARLY IN THE AREA OF ARBITRAGE WHERE BOND PROCEEDS ARE INVESTED IN HIGHERYIELDING INSTRUMENTS CRITICS INCLUDING GOVERNMENT OFFICIALS AND BOND MARKET PARTICIPANTS CONSIDER THE INITIATIVE LONG OVERDUE THEY HAVE FAULTED THE AGENCY FOR RESPONDING SLOWLY IF AT ALL TO ABUSIVE MUNI DEALS AND THE GENERAL ACCOUNTING OFFICE RECENTLY URGED THE IRS TO OVERHAUL ITS ENFORCEMENT OPERATIONS IN ANNOUNCING THE SURPRISE INITIATIVE THE IRS SAID THE GOALS INCLUDE ACHIEVING SIGNIFICANT LEVELS OF AUDIT COVERAGE RESPONDING PROMPTLY TO ABUSIVE TRANSACTIONS AND INCREASING THE EFFECTIVE USE OF TAXEXEMPT BOND INFORMATION RETURNS UNDER THE NEW PLAN AGENTS WHO ARE SPECIALISTS IN EXAMINING TAXEXEMPT BOND TRANSACTIONS WILL BE MOVED INTO KEY DISTRICT OFFICES THE IRS ALSO PLANS TO DEVELOP AUDIT GUIDELINES ON TAXEXEMPT BONDS AND TO REVISE TAXEXEMPT BOND INFORMATION REPORTS TO MAKE TRACKING COMPLIANCE EASIER THE TAX CODE CONTAINS A HOST OF RULES GOVERNING MUNIS INCLUDING STATE VOLUME CAPS FOR CERTAIN TYPES OF BONDS PUBLIC HEARING REQUIREMENTS AND LOW AND MODERATEINCOME STANDARDS FOR SOME HOUSING BONDS IN ADDITION ALL TAXEXEMPT BOND ENFORCEMENT EFFORTS WILL BE CONSOLIDATED AND PLACED UNDER THE JURISDICTION OF THE ASSISTANT COMMISSIONER FOR EMPLOYEE PLANS AND EXEMPT ORGANIZATIONS THAT OFFICE IS EXPANDING ITS EXAMINATION PROGRAM TO INCLUDE ALL TYPES OF TAXEXEMPT BOND TRANSACTIONS THE UNIT PREVIOUSLY DEALT ONLY WITH TAXEXEMPT BONDS ISSUED BY TAXEXEMPT ENTITIES SUCH AS NONPROFIT HOSPITALS AND COLLEGES CURRENTLY IT IS AUDITING SOME 27 CASES INVOLVING TAXEXEMPT BONDS SOLD BY NONPROFITS TO DETERMINE TAX LAW COMPLIANCE THE IRS ALSO SAID IT WILL DETERMINE WHETHER LEGISLATIVE CHANGES ARE NEEDED TO IMPROVE ITS ABILITY TO ENFORCE THE TAXEXEMPT BOND LAWS IRS ATTORNEY JOHN CROSS SAID ONE POSSIBLE APPROACH THAT HAS BEEN DISCUSSED IS TO TARGET TAX PENALTIES TOWARD ARCHITECTS OF ABUSIVE BOND ISSUES SUCH AS ISSUERS UNDERWRITERS AND BOND LAWYERS CURRENTLY THE AGENCY HAS THE OPTION OF TAXING HOLDERS OF MUNICIPAL BONDS DEEMED TO HAVE VIOLATED TAX CODE RULES OR OF USING THE THREAT OF TAXATION TO FORCE SETTLEMENTS WITH ISSUERS THE AGENCY ALREADY HAS MOVED TO TAX SOME OF AS MUCH AS 12 BILLION OF ALLEGEDLY BOGUS BONDS SOLD BEFORE TAX DEADLINES IN THE MID1980S THE OFFICE OF ASSOCIATE CHIEF COUNSEL WHICH HAS BEEN RESPONSIBLE FOR THE AGENCY TAXEXEMPT BOND ENFORCEMENT EFFORTS WILL CONTINUE TO BE RESPONSIBLE FOR REGULATIONS AND FOR REVENUE RULINGS PRIVATE LETTER RULINGS AND OTHER TECHNICAL ADVICE THE ENFORCEMENT INITIATIVE WAS UNVEILED AS THE IRS ISSUED FINAL RULES GENERALLY EFFECTIVE JULY 1 INTENDED TO PREVENT ARBITRAGE ABUSES THE IRS SAID THE NEW RULES ASSUME THAT TAXEXEMPT BONDS WILL BE THE SUBJECT OF AN EFFECTIVE COMPLIANCE PROGRAM THE IRS BACKED OFF FROM AN EARLIER PROPOSAL TO REQUIRE DETAILED SECURITIES LAWSTYLE DISCLOSURE OF TAX QUESTIONS BOND LAWYERS AND OTHER MARKET PARTICIPANTS HAD WARNED THAT THE APPROACH COULD CONFUSE RATHER THAN ENLIGHTEN INVESTORS 9306150015 930615 TECHNOLOGY & MEDICINE STUDY LINKS COLLAGEN WITH AILMENTS BUT MAKER OF IMPLANTS DISPUTES REPORT BY RON WINSLOW STAFF REPORTER OF THE WALL STREET JOURNAL HEALTH RESEARCHERS SAID PATIENTS UNDERGOING PLASTIC SURGERY INVOLVING COLLAGEN IMPLANTS MAY BE EXPOSED TO AN INCREASED RISK OF RARE BUT DEBILITATING RHEUMATISMLIKE AILMENTS BUT COLLAGEN CORP A PALO ALTO CALIF COMPANY THAT MAKES COLLAGEN IMPLANTS USED TO TREAT WRINKLES AND SCARS DISPUTED THE REPORT CHARGING THAT IT IS BASED ON FLAWED SCIENCE THE STUDY REOPENS A LONGRUNNING CONTROVERSY ON THE SAFETY OF INJECTABLE COLLAGEN WHICH IS DERIVED FROM A COW PROTEIN AND WHICH HAS BEEN USED TO TREAT MORE THAN A MILLION PEOPLE SINCE IT CAME ON THE MARKET IN 1980 THE STUDY WHICH APPEARS IN TODAY'S ANNALS OF INTERNAL MEDICINE IS BASED ON NINE CASES REPORTED BETWEEN 1980 AND 1988 OF TWO AUTOIMMUNE DISEASES THAT CAUSE INFLAMMATION OF THE SKIN AND MUSCLES RESEARCHERS LED BY JEAN CUKIER A PLASTIC SURGEON AT HOUSTON MEDICAL CENTER DETERMINED THAT BASED ON INCIDENCE OF THE DISEASE IN THE GENERAL POPULATION PEOPLE RECEIVING COLLAGEN TREATMENT HAD FIVE TIMES MORE RISK OF COMING DOWN WITH THE PAINFUL AFFLICTIONS THAN THOSE WHO DIDN'T HAVE THE TREATMENTS MORE SIGNIFICANT DR CUKIER SAID THE RESEARCH SHOWED THE PATIENTS WERE DIAGNOSED WITH THE AILMENTS ON AVERAGE WITHIN 64 MONTHS AFTER EXPOSURE TO COLLAGEN A LOT OF THESE PATIENTS STARTED EXPERIENCING SYMPTOMS ALMOST IMMEDIATELY HE SAID IN CASES WHERE SILICONE BREAST IMPLANTS HAVE BEEN ASSOCIATED WITH SIMILAR AILMENTS THE TIME FROM EXPOSURE TO DIAGNOSIS OFTEN IS 10 TO 15 YEARS THE RESEARCHERS SAID THE STUDY SUGGESTS THE RISKS OF USING COLLAGEN SHOULD BE REASSESSED AGAINST ITS BENEFITS AS A COSMETIC THE NINE CASES WERE REPORTED TO THE US FOOD AND DRUG ADMINISTRATION BY COLLAGEN CORP FROM A TOTAL OF ABOUT 345000 PEOPLE TREATED DURING THE EIGHTYEAR PERIOD THE DISEASES ARE CALLED DERMATOMYOSITIS AND POLYMYOSITIS COLLAGEN SAID THE STUDY WAS FLAWED BECAUSE AMONG OTHER REASONS RESEARCHERS DIDN'T ACCOUNT FOR THE FIVE YEARS SINCE THE END OF STUDY PERIOD WHEN IT SAYS NO ADDITIONAL CASES OF THE RARE DISEASES AMONG COLLAGEN PATIENTS WERE REPORTED THE COMPANY ALSO SAID THAT WHILE THE NINE CASES INCLUDE THREE PATIENTS WHO HAD SKIN TESTS BUT WEREN'T SUBSEQUENTLY TREATED THE RATE OF INCIDENCE IS BASED ONLY ON THE TOTAL TREATED A CALCULATION COLLAGEN SAYS DISTORTS THE RESULTS AGAINST THE COMPANY THE CORE ISSUE IS WHETHER THERE ARE MORE CASES THAN YOU'D EXPECT SAID MICHAEL ROSENBERG AN EPIDEMIOLOGIST AT UNIVERSITY OF NORTH CAROLINA AT CHAPEL HILL AND A CONSULTANT TO COLLAGEN HE SAID THE STUDY UNDERESTIMATES THE NUMBER OF CASES THAT WERE EXPECTED THE COMPANY SAID THE FDA REVIEWED THE ENTIRE CONTENTS OF THE STUDY IN LATE 1991 AND CONCLUDED THERE WASN'T SUFFICIENT EVIDENCE TO ESTABLISH A CAUSAL RELATIONSHIP BETWEEN INJECTIONS OF COLLAGEN AND THE DISEASES IN AN EDITORIAL ACCOMPANYING THE REPORT MARC C HOCHBERG OF THE UNIVERSITY OF MARYLAND AT BALTIMORE SAID SOME OF THE ASSUMPTIONS FOR THEIR STATISTICAL ANALYSIS MAY NOT BE VALID BUT SAID THE CONCLUSIONS WARRANTED FOLLOWUP WITH WELLDESIGNED EPIDEMIOLOGIC STUDIES COLLAGEN MARKETS COLLAGEN IMPLANTS UNDER THE TRADE NAMES ZYDERM AND ZYPLAST 9306150013 930615 JUDGE SAYS GM POLICY ON GRIEVANCES VIOLATES WORKERS' CIVIL RIGHTS CHICAGO A FEDERAL JUDGE HERE RULED THAT GENERAL MOTORS CORP'S POLICY OF RESOLVING GRIEVANCES BETWEEN SALARIED EMPLOYEES AND THE AUTO MAKER IS DISCRIMINATORY UNDER CIVIL RIGHTS LAW THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SAID THE RULING STEMS FROM A LAWSUIT THE EEOC FILED A YEAR AGO AGAINST GM THAT ALLEGED THE AUTO MAKER DENIED EMPLOYEES ACCESS TO ITS OPENDOOR POLICY IF THEY ALSO PURSUED DISCRIMINATION COMPLAINTS WITH THE COMMISSION UNDER THE OPENDOOR POLICY EMPLOYEES WERE ALLOWED TO ADDRESS THEIR GRIEVANCES THROUGH DIRECT DISCUSSION WITH MANAGEMENT THE EEOC WHOSE LAWSUIT SOUGHT CLASSACTION STATUS ARGUED THAT GM'S PRACTICE VIOLATED TITLE VII OF THE CIVIL RIGHTS ACT OF 1964 WHICH PROHIBITS RETALIATION AGAINST EMPLOYEES WHO SEEK PROTECTION UNDER THE CIVIL RIGHTS ACT A GM SPOKESMAN SAID THE AUTO MAKER HAS YET TO SEE A COPY OF THE JUNE 8 RULING ENTERED IN FEDERAL COURT IN CHICAGO WE WOULD LIKE TO RESERVE ANY COMMENT UNTIL WE HAVE HAD A CHANCE TO SEE IT THE SPOKESMAN SAID GM CONFIRMED THAT AN EITHER OR POLICY EXISTED AT THE COMPANY BUT WAS CHANGED MORE THAN A YEAR AGO TO ALLOW EMPLOYEES TO ADDRESS COMPLAINTS WITH MANAGERS AND THE EEOC AT THE SAME TIME THE EEOC'S CASE CENTERS ON A COMPLAINT FILED BY IRVIN TALBERT A SALARIED EMPLOYEE AT GM'S ELECTROMOTIVE DIVISION HE ALLEGED RACE AND AGE DISCRIMINATION IN A CHARGE FILED WITH THE EEOC AND LATER SENT A LETTER TO GM'S PERSONNEL DEPARTMENT QUESTIONING HIS TREATMENT BY THE COMPANY THE PERSONNEL DEPARTMENT RESPONDED THAT HE WAS NOT ELIGIBLE FOR THE INTERNAL PROGRAM BECAUSE HE HAD ALREADY GONE TO THE EEOC 9306150012 930615 BUSINESS BRIEF MARRIOTT CORP MEETING DATE SET TO WEIGH SPLITTING COMPANY IN TWO MARRIOTT CORP SET JULY 23 FOR ITS ANNUAL MEETING TO CONSIDER SPLITTING THE COMPANY INTO TWO ENTITIES WASHINGTONBASED MARRIOTT HAD DELAYED SETTING A MEETING DATE WHILE AWAITING CLEARANCE OF PROXY MATERIALS BY THE SECURITIES AND EXCHANGE COMMISSION THE SPLIT IS EXPECTED TO BE COMPLETED BY LATE SUMMER AS A RESULT OF DISCUSSIONS WITH THE SEC MARRIOTT WILL CHANGE ITS METHOD OF DETERMINING NET REALIZABLE VALUE OF ASSETS REPORTED HELD FOR SALE MARRIOTT SAID THE CHANGE WILL RESULT IN A ONETIME NONCASH CHARGE OF 32 MILLION OR 29 CENTS A SHARE IN THE SECOND QUARTER MARRIOTT WANTS TO SPLIT THE COMPANY INTO AN ENTITY COMPOSED OF HOTEL MANAGEMENT OPERATIONS AND ANOTHER OF DEBTLADED REAL ESTATE PROPERTIES 9306150011 930615 BUSINESS BRIEF BOMBARDIER INC USAIR UNIT PLANS PURCHASE OF 10 DE HAVILLAND AIRCRAFT BOMBARDIER INC SAID A USAIR GROUP INC UNIT AGREED TO BUY UP TO 10 DASH 8 SERIES 100 AIRCRAFT FROM BOMBARDIER'S DE HAVILLAND UNIT TERMS OF BOMBARDIER'S AGREEMENT WITH USAIR LEASING AND SERVICES WEREN'T DISCLOSED THE 37PASSENGER TWINENGINE DE HAVILLAND AIRCRAFT NORMALLY SELL FOR ABOUT 10 MILLION EACH DELIVERIES TO THE USAIR UNIT ARE TO BEGIN NEXT MARCH SEPARATELY BOMBARDIER BASED IN MONTREAL SAID ITS CANADAIR DEFENSE SYSTEMS DIVISION RECEIVED A 10 MILLION CONTRACT TO TEST THE AUTOMATIC LANDING CAPABILITIES OF THE CL227 SEA SENTINEL ON A US NAVY FRIGATE EARLY NEXT YEAR BOMBARDIER A MONTREAL TRANSPORTATIONEQUIPMENT MAKER ALSO SAID IT EXPECTS TO BEGIN DELIVERIES OF A NEW LONGRANGE BUSINESS JET IN 1995 THE JET THE CHALLENGER 604 HAS A TARGET NONSTOP RANGE OF 4000 NAUTICAL MILES AND WILL COST LESS THAN 20 MILLION AFTER INTERIOR FITTING BOMBARDIER SAID 9306150010 930615 WHAT'S NEWS WORLDWIDE CLINTON NOMINATED FEDERAL APPEALS JUDGE GINSBURG TO THE SUPREME COURT THE PRESIDENT SELECTED RUTH BADER GINSBURG AS HIS FIRST SUPREME COURT NOMINEE ENDING WEEKS OF VACILLATION GINSBURG 60 A MODERATE WHO HAS SERVED ON THE APPEALS COURT FOR THE DISTRICT OF COLUMBIA SINCE 1980 IS THE FIRST SUPREME COURT NOMINEE NAMED BY A DEMOCRATIC PRESIDENT IN A GENERATION SHE WOULD TAKE THE SEAT OF RETIRING JUSTICE BYRON WHITE AND BECOME THE SECOND WOMAN ON THE HIGH COURT JOINING SANDRA DAY O'CONNOR CLINTON IN ADDITION TO CITING GINSBURG'S ACHIEVEMENTS AS A JUDGE NOTED HER PIONEERING WORK IN THE LEGAL BATTLE FOR WOMEN'S RIGHTS IN THE US THE UN RECOMMENDED SENDING 7500 ADDITIONAL TROOPS BACKED BY AIR POWER TO BOSNIA IMMEDIATELY TO GUARD CIVILIANS IN UN SAFE AREAS BUT UN CHIEF BOUTROSGHALI SAID 34000 SOLDIERS WOULD BE NEEDED IF THE SIX AREAS WERE TO BE PROTECTED PROPERLY MEANWHILE SERB GUNNERS POUNDED GORAZDE AND STEPPED UP SHELLING OF SARAJEVO THE PENTAGON DISPATCHED SEVERAL MORE ATTACK HELICOPTERS TO SOMALIA AND A SENIOR US DEFENSE OFFICIAL SAID AIR STRIKES WOULD CONTINUE AS NECESSARY AGAINST THE FORCES OF CLAN LEADER AIDID A STATE DEPARTMENT SPOKESMAN SAID THE US REGRETTED CIVILIAN DEATHS IN SOMALIA DURING CLASHES WITH UN FORCES AND WANTED TO SEE ORDER RESTORED THE SUPREME COURT AGREED TO CONSIDER WHETHER WOMEN'SRIGHTS GROUPS MAY USE THE FEDERAL RACKETEERING LAW TO FIGHT ANTIABORTION FORCES THE JUSTICES WILL REVIEW A LOWERCOURT RULING THAT SAID WOMEN'S GROUPS COULDN'T SUE ANTIABORTION ACTIVISTS IN A CASE ALLEGING THERE IS A NATIONWIDE CONSPIRACY TO INTIMIDATE ABORTION CLINICS INTO CLOSING A US MILITARY PLANE FLEW THE FIRST GROUP OF HIVINFECTED HAITIANS TO MIAMI FROM A CAMP IN GUANTANAMO BAY CUBA THAT WAS ORDERED CLOSED LAST WEEK BY A US JUDGE THE 21 ADULTS AND SIX CHILDREN DETAINED AS THEY TRIED TO FLEE HAITI WILL BE FOLLOWED BY ABOUT 110 OTHER HAITIAN REFUGEES FROM THE CAMP OVER THE NEXT 1 1/2 WEEKS THE WHITE HOUSE INTENDS TO UNVEIL WITHIN A FEW WEEKS A DETAILED PLAN TO REDUCE EMISSIONS OF GASES SUCH AS CARBON DIOXIDE BELIEVED DANGEROUS TO THE ATMOSPHERE VICE PRESIDENT GORE ANNOUNCED PENNSYLVANIA GOV CASEY UNDERWENT SURGERY AT A PITTSBURGH HOSPITAL FOR A HEARTLIVER TRANSPLANT THAT DOCTORS SAY HE NEEDS TO CORRECT A RARE GENETIC DISEASE MEANWHILE THE STATE'S SEN SPECTER WAS DESCRIBED AS RECOVERING WELL AFTER AN OPERATION IN PHILADELPHIA TO REMOVE A BENIGN TWOINCH BRAIN TUMOR THE FDA PLANS TO BAR HEALTH CLAIMS ON LABELS FOR DIETARY SUPPLEMENTS UNLESS THE CLAIMS ARE SUFFICIENTLY BACKED BY SCIENTIFIC RESEARCH THE AGENCY WILL PROPOSE ALLOWING SUPPLEMENT LABELS TO INCLUDE A CLAIM THAT FOLIC ACID HELPS REDUCE BIRTH DEFECTS CAMBODIA'S NEW ASSEMBLY REAFFIRMED PRINCE SIHANOUK AS HEAD OF STATE AND HE QUICKLY CONFRONTED A SECESSION MOVEMENT LED BY AN ESTRANGED SON SIHANOUK URGED LAWMAKERS TO RESTRAIN REBELLIOUS LEADERS OF THE OUTGOING GOVERNMENT WHO DECLARED SEVEN PROVINCES AUTONOMOUS HIS SON PRINCE CHAKRAPONG HEADS THE RENEGADES ISRAELI'S RABIN SAID HE HOPED TO REACH AN AGREEMENT ON AN OUTLINE FOR PALESTINIAN AUTONOMY BY THE END OF THE NEW ROUND OF MIDEAST PEACE TALKS STARTING TODAY THE PRIME MINISTER ALSO SAID ANY INTERIM SELFRULE ARRANGEMENT WOULD MOST LIKELY BE IMPLEMENTED IN GAZA FIRST AS A TEST CASE THE CLINTON ADMINISTRATION WILL URGE THE SENATE TO APPROVE FOUR HUMANRIGHTS TREATIES SIGNED BY PRESIDENT CARTER BUT ALLOWED TO LANGUISH UNRATIFIED BY HIS SUCCESSORS SECRETARY OF STATE CHRISTOPHER TOLD DELEGATES AT THE WORLD CONFERENCE ON HUMAN RIGHTS A WEALTHY MUSLIM BUSINESSMAN SURGED AHEAD IN THE TALLY FROM NIGERIA'S PRESIDENTIAL ELECTION SATURDAY MOSHOOD ABIOLA'S SOCIAL DEMOCRATIC PARTY CLAIMED HE HAD DEFEATED FELLOW MILLIONAIRE BASHIR TOFA SEPARATELY MALAWI'S PRODEMOCRACY FORCES WERE LEADING IN A REFERENDUM THAT COULD END PRESIDENT BANDA'S 29 YEARS OF RULE 9306150009 930615 BUSINESS BRIEF DEVON ENERGY CORP SOME NATURAL GAS PROPERTIES TO BE BOUGHT FROM FINA DEVON ENERGY CORP SAID IT AGREED TO PURCHASE CERTAIN NATURAL GAS PROPERTIES FROM FINA INC FOR 54 MILLION THE PROPERTIES PART OF THE 329 FRUITLAND COAL UNIT LOCATED IN NORTHWESTERN NEW MEXICO ARE EXPECTED TO INCREASE DEVON'S NATURAL GAS RESERVES BY ABOUT 75 BILLION CUBIC FEET OR APPROXIMATELY 25 AS OF JUNE 1 1993 THE TRANSACTION EXPECTED TO BE COMPLETED JUNE 28 CONSISTS OF 49 MILLION FOR 64 PRODUCING WELLS AND RELATED PRODUCTION FACILITIES AND 5 MILLION FOR DRILLING AND DEVELOPMENT RIGHTS THE OKLAHOMA CITY COMPANY ESTIMATES THESE RIGHTS HAVE PROBABLE RESERVES OF 35 BILLION TO 50 BILLION CUBIC FEET OF NATURAL GAS DEVON SAID THE ACQUISITION FITS THE COMPANY BECAUSE IT IS LOCATED CLOSE TO ITS LARGEST PROPERTY THE NORTHEAST BLANCO UNIT IT ALSO NOTED THAT NO NEW EMPLOYEES OR ADMINISTRATION EXPENSES WILL BE ASSOCIATED WITH THE NEW PROPERTIES 9306150008 930615 MARKETSCAN COMPETITION HEATS UP ICEDTEA INDUSTRY BY MICHAEL J MCCARTHY STAFF REPORTER OF THE WALL STREET JOURNAL THE LONGSIMMERING TEA BATTLE IS COMING TO A BOIL WITH THE IMPORTANT SUMMER SEASON LOOMING THE NEW PLAYERS IN TEA COCACOLA CO AND PEPSICO INC HAVE REFINED THEIR DRINKS AND THEIR ADVERTISING AND ARE ABOUT TO UNLEASH THE BIGGEST MARKETING PUSH ON ICED TEA EVER LAST YEAR EVEN AS THE COLA GIANTS WERE HUNTING FOR MANUFACTURING PLANTS AND WORKING TO PERFECT FORMULATIONS TEA SALES TOOK OFF PREPAREDTEA SALES JUMPED 50 IN 1992 TO 600 MILLION AND SOME PEOPLE READING THE TEA LEAVES BELIEVE THE SALES FIGURE COULD TOP 1 BILLION THIS YEAR IN THE 12 WEEKS ENDED LAST APRIL 25 SUPERMARKET SALES OF PREPARED TEA SOARED 142 FROM A YEAR EARLIER ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE SOCALLED READYTODRINK OR PREPARED TEA IS SOLD IN BOTTLES CANS AND CARTONS IT IS A SMALL NICHE COMPARED WITH THE 48 BILLION CARBONATED SOFTDRINK INDUSTRY BUT WITH COLA SALES SLOWING THE SOFTDRINK GIANTS HAVE SCRAMBLED TO FIND TEA PARTNERS COKE LINKED UP WITH NESTLE SA AND PEPSI COMBINED WITH UNILEVER GROUP'S THOMAS J LIPTON CO THE PARTNERSHIPS WITH THE TEA COMPANIES BOTH OF WHOM WERE ALREADY MAKERS OF PREPARED TEAS ENABLED THE COLA COMPANIES TO GET IN THE BUSINESS ABOVE THE GROUND FLOOR BELATEDLY THEY JOINED SNAPPLE BEVERAGE CO A BIG PLAYER IN TEA WHOSE STOCK PRICE HAS NEARLY TRIPLED SINCE IT WENT PUBLIC IN DECEMBER THAT TEA TRIUMVIRATE IS EXPECTED TO POUR AN UNPRECEDENTED 60 MILLION INTO READYTODRINK TEA ADS MUCH OF IT IN THE NEXT FEW MONTHS LAST SUMMER WAS PLANT THE SEEDS THIS SUMMER IS PICK THE FRUIT SAYS LEO NOVOSEL A VICE PRESIDENT OF CANFIELD BEVERAGES IN CHICAGO WHICH DISTRIBUTES ARIZONA ICED TEA THE EMERGENCE OF PREPARED TEA HAS REAWAKENED AN INDUSTRY IN DECLINE FOR MUCH OF THE PAST DECADE THOUGH ICED TEA IS A QUINTESSENTIALLY AMERICAN BEVERAGE IT MADE ITS DEBUT AT THE 1904 WORLD'S FAIR IN ST LOUIS ITS TRADITIONAL FORM TEA BAGS AND POWDERS MADE IT INCREASINGLY OUT OF STEP WITH NATIONAL PREFERENCES FOR CONVENIENCE FOR MANY PEOPLE ALL THE BOILING AND STIRRING WASN'T WORTH THE TROUBLE READYTODRINK TEA IS THE TAIL WAGGING THE DOG SAYS MICHAEL BELLAS PRESIDENT OF BEVERAGE MARKETING CORP A NEW YORK RESEARCH AND CONSULTING COMPANY IT'S PULLING THE WHOLE CATEGORY BACK UP THE TEA PARTY HAS BEGUN TO RESHAPE THE MARKET LIPTON THE LONGTIME PREPAREDTEA LEADER HAS BEEN UNSEATED IN SUPERMARKETS BY SNAPPLE FOR THE YEARLONG PERIOD ENDED IN APRIL SNAPPLE'S SHARE ROSE TO 44 FROM 26 ACCORDING TO INFORMATION RESOURCES WHILE LIPTON'S PLUMMETED TO 19 FROM 46 NESTEA ALMOST INVISIBLE LAST YEAR ROSE NEARLY TO THE NO 2 SPOT WITH A 17 SHARE THE REVERSE FORTUNES OF SNAPPLE AND LIPTON STEM LARGELY FROM DISTRIBUTION LIPTON LOST TEA SALES DURING THE SHIFT OF ITS ACCOUNT TO PEPSI BOTTLERS AS SUPPLIES FELL IN SOME AREAS SNAPPLE IN TURN GAINED TEA SALES BY PICKING UP FORMER LIPTON DISTRIBUTORS THROUGHOUT THE MIDWEST AND IN BIG STATES ELSEWHERE LIPTON'S MOVING TO PEPSI WAS A GODSEND FOR SNAPPLE SAYS ARNOLD GREENBERG SNAPPLE'S CHIEF OPERATING OFFICER NOTING THAT SUPERMARKETS ACCOUNT FOR ONLY 30 OF ITS SALES LIPTON SAYS IT WILL BE BACK ON TOP IN GROCERY STORES BY THE END OF THE YEAR PREPARED TEAS MADE BY LIPTON AND ITS COMPETITORS ALSO SELL WELL IN SMALL OUTLETS SUCH AS CONVENIENCE STORES AND DELICATESSENS LIPTON AND NESTEA CERTAINLY DO HAVE POWERFUL BRAND NAMES THAT WITH COKE AND PEPSI'S MARKETING AND DISTRIBUTION POWER COULD QUICKLY ROLL OVER SNAPPLE BUT THE COLA COMPANIES FACE SOME UNUSUAL AND UNFAMILIAR MARKETING OBSTACLES FIRST THEY HAVE TO PERSUADE MILLIONS OF CONSUMERS WHO ARE DEDICATED TO HOMEMADE ICED TEA TO BUY A MORE EXPENSIVE BOTTLED VERSION WITH READYTODRINK TEA REPRESENTING ONLY 7 OF TOTAL TEA SALES HOMEBREWING IS STILL WIDELY PRACTICED ALSO PAST ATTEMPTS AT PREPARED TEA WHICH WERE MADE FROM POWDERED MIXES AND PRESERVATIVES LEFT A BAD TASTE IN CONSUMER MOUTHS NOW THE COMPANIES HAVE REVAMPED PRODUCTION PASTEURIZING THE TEA TO GET THE TASTE CLOSER TO HOMEBREWED QUALITY BUT COCACOLA NESTLE REFRESHMENTS CO MADE THE COSTLY DECISION TO BYPASS THE MASSIVE COCACOLA BOTTLING SYSTEM WHICH WASN'T EQUIPPED FOR THE NEWER PRODUCTION PROCESS WE HAD TO BE TASTE DRIVEN RATHER THAN EXPEDIENCY DRIVEN SAYS HARRY E TEASELY JR PRESIDENT OF THE COCACOLA NESTLE VENTURE MEANWHILE A HOST OF RIVAL TEAS HAVE FLOODED THE MARKET NEARLY 200 READYTODRINK TEAS WERE INTRODUCED IN 1991 AND 1992 ACCORDING TO MARKETING INTELLIGENCE SERVICE LTD WHICH TRACKS NEW PRODUCTS THIS YEAR QUAKER OATS CO EVEN TOSSED A TEAFLAVORED GATORADE INTO THE ARENA BUT BUILDING ON THE PIONEERING EFFORTS OF SNAPPLE THE COLA COMPANIES BELIEVE THEY WILL PREVAIL BY DUSTING OFF THE STAID IMAGE OF ICED TEA REPAINTING IT AS A NATURAL BETTERFORYOU BEVERAGE NESTEA ADS THAT BROKE THIS MONTH EMPHASIZE THAT THE DRINK IS PURE AND CLEAN THE MAKERS OF PREPARED TEAS DON'T EMPHASIZE THAT SOME OF THEIR PRODUCTS HAVE INGREDIENTS OTHER THAN TEA NESTEA'S SWEETENED PURE ICED TEA WITH NATURAL LEMON FLAVOR FOR EXAMPLE CONTAINS HIGH FRUCTOSE CORN SYRUP MALTODEXTRIN AND POTASSIUM CITRATE PEPSI EMPLOYING SPORTS ILLUSTRATED COVERMODEL VENDELA IS ADDING HEALTH SEX AND CELEBRITY APPEAL TO ADVERTISE THE LIPTON BRAND ICED TEA IS RIGHT FOR TODAY AS MORE CONSUMERS LOOK FOR A PERCEIVED HEALTHIERTYPE PRODUCT SAYS SHELDON ROESCH GENERAL MANAGER OF THE PEPSI LIPTON TEA PARTNERSHIP THE PREPAREDTEA MAKERS' EFFORTS SHOULD BE BUTTRESSED BY GROWING SCIENTIFIC EVIDENCE OF TEA'S BENEFITS RESEARCHERS AT CASE WESTERN RESERVE UNIVERSITY HAVE FOUND THAT CERTAIN TYPES OF CANCER WERE INHIBITED WHEN LABORATORY MICE CONSUMED TEA AND A RECENT NORWEGIAN STUDY LINKED TEADRINKING TO LOWER CHOLESTEROL RATES TO LURE NEW DRINKERS NESTEA SNAPPLE AND LIPTON HAVE BEEN PUSHING FRUITFLAVORED TEAS LIKE RASPBERRY AND PEACH TO SIGNAL THAT TODAY'S TEA IS REALLY DIFFERENT TEA HAS BEEN HERE FOREVER AND NOT THAT IT'S BORING BUT IT'S CLOSE SAYS HERVE CATHELIN COCACOLA NESTLE'S VICE PRESIDENT MARKETING WE HAVE TO CHANGE THAT PERCEPTION INTERNALLY COKE AND PEPSI ARE HYPED UP ABOUT TEA BECAUSE IT HAS PROPERTIES NEAR AND DEAR TO THEM LIKE COLA TEA GIVES PEOPLE A BROWNGOODS KIND OF FLAVOR AND A CAFFEINE LIFT SAYS A FORMER COKE MARKETER BECAUSE IT IS UNCARBONATED ICED TEA IS HIGH IN WHAT BEVERAGE MARKETERS CALL DRINKABILITY MEANING THAT IT CAN BE CONSUMED RAPIDLY AND IN QUANTITY THE POPULAR 16OUNCE TEA BOTTLES USE A WIDEMOUTH OPENING TO ENCOURAGE GULPING AND FOR THOSE PEOPLE WHO STILL DON'T GET IT PEPSI'S NEW LIPTON SPOTS INCLUDING ONE WITH SWEATING SUPERATHLETE BO JACKSON USE THE LINE THIS AIN'T NO SIPPIN' TEA SNAPPLE DOMINATES THE MARKET FOR PREPARED ICED TEA BUT COCACOLA AND PEPSICO ARE PLANNING THE BIGGEST MARKETING PUSH EVER FOR THE NESTEA AND LIPTON BRANDS 9306150007 930615 BUSINESS BRIEF TIFFANY & CO FIRM TO TAKE OVER TASKS FROM MITSUKOSHI IN JAPAN TIFFANY & CO SAID THAT NEXT MONTH IT WILL TAKE OVER MARKETING AND MERCHANDISING AT ITS 29 STORES IN JAPAN CURRENTLY OPERATED BY MITSUKOSHI LTD AND WILL TAKE A CHARGE OF ABOUT 327 MILLION FOR THE CHANGE THE NEW YORK JEWELER AND LUXURYGOODS RETAILER SAID THE CHARGE TOTALING ABOUT 204 A SHARE WILL BE IN THE QUARTER ENDING JULY 31 IT HAS SET UP A 575 MILLION PRODUCTRETURN RESERVE IN CONNECTION WITH ITS DECISION TO PURCHASE SUBSTANTIALLY ALL OF MITSUKOSHI'S TIFFANY INVENTORIES OVER THE NEXT FOUR YEARS ALTHOUGH THE RESERVE WILL RESULT IN THE 327 MILLION CHARGE THIS QUARTER SUBSEQUENT PERIODS' EARNINGS WILL BE PROPORTIONATELY INCREASED DUE TO THE SHIFT FROM WHOLESALE TO RETAIL SALES IN JAPAN WHICH SHOULD GENERATE WIDER MARGINS TIFFANY SAID UNDER THE NEW ARRANGEMENT TIFFANY WILL SELL MERCHANDISE DIRECTLY TO CONSUMERS INSTEAD OF SELLING IT WHOLESALE TO MITSUKOSHI AN ARRANGEMENT THAT HAD EXISTED SINCE 1972 MITSUKOSHI WILL CONTINUE TO PROVIDE AND MAINTAIN THE BOUTIQUE FACILITIES AND STAFF AND WILL BE COMPENSATED ON A PERCENTAGEOFSALES BASIS 9306150006 930615 WHAT'S NEWS BUSINESS AND FINANCE DEMOCRATS ON THE SENATE FINANCE COMMITTEE ARE TALKING ABOUT REDUCING SOME OF CLINTON'S PROPOSED TAX BREAKS FOR BUSINESS TO SHRINK A PLANNED FUELS TAX FURTHER THE 11 LAWMAKERS HAVE BEEN UNABLE TO AGREE ON A PROPOSAL THAT WOULD RAISE THE TRANSPORTATIONFUELS TAX BY 73 CENTS A GALLON AND CUT FEDERAL HEALTH PROGRAMS DEEPER WHICH WAS OFFERED AS AN ALTERNATIVE TO MR CLINTON'S UNPOPULAR BROADBASED ENERGY TAX THE WHITE HOUSE RETREATED FROM ITS PLAN TO FREE DOCTORS OF MALPRACTICE LIABILITY AND PUT SUCH RESPONSIBILITY ON GROUP HEALTH PLANS AFTER THE ADMINISTRATION WAS BESET BY COMPETING MEDICAL AND TRIAL LAWYER LOBBIES ADVANCED MICRO DEVICES IS DEVELOPING A FAMILY OF CHIPS WITH AN ORIGINAL DESIGN THAT STILL RUNS SOFTWARE WRITTEN FOR INTEL CHIPS IN A BID TO END ITS LEGAL BATTLES WITH INTEL THE NORTH AMERICAN TRADE PACT GOT A BOOST WHEN LOS ANGELES AND MEXICO AGREED TO A CLEANUP OF AN ABANDONED LEADRECYCLING PLANT IN MEXICO NAFTA PROPONENTS ARE USING THE CLEANUP PLAN TO SHOW ENVIRONMENTAL COOPERATION BETWEEN THE US AND MEXICO WILL IMPROVE UNDER THE FREE TRADE ACCORD LEGISLATION TO BAN PERMANENT REPLACEMENT OF STRIKING WORKERS FACES BLEAK PROSPECTS EVEN AS THE HOUSE PREPARES TO APPROVE THE BILL TODAY VW'S PURCHASING CHIEF LOPEZ SAID THE GERMAN CAR MAKER WANTS TO BUILD AN EXPERIMENTAL SUPEREFFICIENT PLANT IN NORTHERN SPAIN BUT HE SAID ITS CONCEPT IS DIFFERENT FROM ONE HE DEVELOPED AT GENERAL MOTORS GM HAS THREATENED TO SUE IF THE DESIGNS ARE SIMILAR FORD MOTOR WILL REPORT LOSSES IN EUROPE THIS YEAR AND POSSIBLY NEXT YEAR AS WELL IF THE ECONOMY THERE DOESN'T IMPROVE A TOP OFFICIAL SAID HE PREDICTED THAT INDUSTRYWIDE VEHICLE SALES IN EUROPE FOR 1993 WILL DROP 17 UPS'S CONTRACT NEGOTIATIONS WITH THE TEAMSTERS UNION ARE HEATING UP AS UPS TRIES TO BRING ITS OPERATIONS UNDER A LABOR JURISDICTION THAT MAKES IT HARDER FOR THE UNION TO STRIKE JOHNSON PRODUCTS' STOCK SURGED 5625 OR 30 AFTER THE BLACKOWNED HAIRCARE PRODUCTS COMPANY AGREED TO A 67 MILLION BUYOUT BY IVAX A CHEMICAL AND PHARMACEUTICAL COMPANY REEBOK SAID IT EXPECTS TO POST CONSIDERABLY LOWER SECONDQUARTER EARNINGS THAN ANALYSTS ESTIMATED ELEVEN WALL STREET FIRMS MADE ABOUT 249 MILLION IN UNDERWRITING AND FINANCIAL ADVISORY FEES FOR RUNNING THE THRIFT CLEANUP AGENCY'S PROGRAM TO TURN S&L LOANS INTO SECURITIES THE SUPREME COURT MADE IT EASIER FOR BUSINESSES TO CHALLENGE GOVERNMENT PROGRAMS THAT SET ASIDE A CERTAIN AMOUNT OF CONTRACTS FOR MINORITIES A VARIATION OF A DOW CHEMICAL FOOD ADDITIVE SHOWED PROMISE AS A POSSIBLE DRUG FOR LOWERING BLOOD CHOLESTEROL LEVELS SCIENTISTS AND THE COMPANY REPORTED THE DRUG COULD BE ADMINISTERED AS AN INGREDIENT IN A COOKIE OR AS A POWDER ADDED TO WATER OR JUICE A FLEET FINANCIAL UNIT DIDN'T VIOLATE GEORGIA'S USURY LAW THE STATE SUPREME COURT RULED IN A SUIT BROUGHT BY BORROWERS THE SUIT ALLEGED THE UNIT CHARGED FEES ON LOANS THAT VIOLATED THE STATE'S LIMIT ON INTEREST RATES BUT THE COURT DID SAY THE PRACTICES WERE UNETHICAL AND PERHAPS EVEN IMMORAL TOKYO STOCK PRICES FELL BROADLY IN EXTREMELY THIN TRADING MONDAY AS THE YEN'S SURGE TO YET ANOTHER RECORD AGAINST THE DOLLAR SCARED AWAY INVESTORS THE NIKKEI INDEX DROPPED 10360 POINTS TO 2039735 LONDON SHARE PRICES CLIMBED AMID INVESTORS' HOPES OF EASED BRITISH MONETARY POLICY BONDS LEHMAN BROTHERS TREASURY INDEX 517687 UP 042 COMMODITIES OIL 1889 A BARREL OFF NINE CENTS DOW JONES FUTURES INDEX 12063 UP 060 SPOT INDEX 11962 OFF 027 DOLLAR 10510 YEN OFF 110 16280 MARKS UP 00005 9306150005 930615 RUTH BADER GINSBURG'S LONG CAREER HAS BEEN SPENT OVERCOMING THE ODDS BY JILL ABRAMSON STAFF REPORTER OF THE WALL STREET JOURNAL AS A YOUNG LAWSCHOOL GRADUATE IN THE LATE 1950S RUTH BADER GINSBURG HAD IMPECCABLE CREDENTIALS INCLUDING FINISHING FIRST IN HER LAWSCHOOL CLASS YET SHE COULDN'T FIND A JOB AT A NEW YORK LAW FIRM IT WAS AN INAUSPICIOUS BEGINNING TO A LEGAL CAREER THAT REACHED AN APOGEE YESTERDAY WHEN PRESIDENT CLINTON NOMINATED THE 60YEAROLD APPEALS COURT JUDGE TO BE THE SECOND WOMAN IN HISTORY TO SERVE ON THE SUPREME COURT IN A SUNDRENCHED ROSE GARDEN CEREMONY PRESIDENT CLINTON PAID HOMAGE TO JUDGE GINSBURG'S PIONEERING WORK IN THE FIGHT FOR WOMEN'S RIGHTS IN A MOVING SPEECH JUDGE GINSBURG SAID SHE WAS INDEBTED TO A REVIVED WOMEN'S MOVEMENT IN THE EARLY 1970S THAT OPENED DOORS FOR PEOPLE LIKE ME SHE ALSO THANKED HER MOTHER WHO DIED WHEN JUDGE GINSBURG WAS A TEENAGER AND WHO DIDN'T LIVE TO SEE A TIME WHEN A WOMAN COULD EVEN ASPIRE TO BE APPOINTED TO THE SUPREME COURT SHE IS THE THURGOOD MARSHALL OF GENDEREQUALITY LAW SAYS JANET BENSHOOF PRESIDENT OF THE CENTER FOR REPRODUCTIVE LAW AND POLICY IN NEW YORK SHE WAS THE GODMOTHER OF LEGAL FEMINISM ADDS JOHN COFFEE A COLUMBIA LAW PROFESSOR AND FORMER COLLEAGUE JUDGE GINSBURG BEGAN HER UNPREDICTABLE RISE TO THE SUPREME COURT IN 1956 AT HARVARD LAW SCHOOL WHERE SHE WAS ONE OF NINE WOMEN IN A CLASS OF MORE THAN 500 IT WAS THEN THE CUSTOM OF THE LAW SCHOOL'S DEAN TO HOLD A RECEPTION FOR WOMEN STUDENTS WHO WERE FIRST ADMITTED TO THE PRESTIGIOUS SCHOOL IN 1950 AFTER DINNER JUDGE GINSBURG RECALLED IN AN INTERVIEW IN THE MID1980S THE DEAN ASKED EACH OF US TO EXPLAIN WHAT WE WERE DOING AT THE LAW SCHOOL OCCUPYING A SEAT THAT COULD HAVE BEEN FILLED BY A MAN WHEN MY TURN CAME I WISHED I COULD HAVE PUSHED A BUTTON AND VANISHED THROUGH A TRAPDOOR JUDGE GINSBURG PERSEVERED AND BECAME ONE OF THE FIRST WOMEN TO WORK ON THE HARVARD LAW REVIEW SHE TIED FOR FIRST IN HER CLASS AT COLUMBIA LAW SCHOOL WHERE SHE HAD TRANSFERRED HER THIRD YEAR OF LAW SCHOOL TO BE WITH HER HUSBAND MARTIN GINSBURG A TAX LAWYER WHO WENT ON TO GIVE ADVICE TO ROSS PEROT REGARDING THE SALE OF HIS EDS CORP TO GENERAL MOTORS CORP IN 1986 MR PEROT GAVE A 1 MILLION GIFT TO GEORGETOWN LAW SCHOOL IN HONOR OF MR GINSBURG HER GRADES AND ACCOMPLISHMENTS NOTWITHSTANDING LAW FIRMS TURNED HER AWAY THEY ALL THOUGHT WOMEN WOULD LEAVE TO MARRY AND HAVE BABIES SHE SAYS MS GINSBURG WENT TO WORK AS A CLERK FOR NEW YORK FEDERAL JUDGE EDMUND PALMIERI FROM THERE SHE BEGAN A TEACHING CAREER AT RUTGERS LAW SCHOOL PREGNANT WITH HER SECOND CHILD SHE FEARED HER TEACHING CONTRACT MIGHT BE CANCELED I GOT THROUGH THE SPRING SEMESTER WITHOUT DETECTION WITH THE HELP OF A WARDROBE ONE SIZE LARGER THAN MINE BORROWED FROM MY MOTHERINLAW SHE RECALLS HER SON ARRIVED IN THE FALL SHORTLY BEFORE SHE RESUMED CLASSES RUTGERS GAVE HER TENURE IN 1969 AT RUTGERS JUDGE GINSBURG BEGAN LITIGATING SEXDISCRIMINATION CASES IN ONE SHE SUCCESSFULLY CHALLENGED SCHOOLBOARD REGULATIONS IN NEW JERSEY REQUIRING PREGNANT TEACHERS TO QUIT TEACHING WITHOUT THE RIGHT TO RETURN TO THEIR JOBS HARVARD LAW SCHOOL SOON TOOK NOTICE IN 1971 WHEN THE LAW SCHOOL WAS HUNTING FOR ITS FIRST FEMALE TENURED FACULTY MEMBER IT INVITED JUDGE GINSBURG TO TEACH A WOMEN IN THE LAW COURSE FOR ONE SEMESTER BUT HARVARD DAWDLED IN OFFERING HER THE JOB AS IN HER NOMINATION TO THE SUPREME COURT DELAY TURNED TO HER ADVANTAGE IN SWOOPED COLUMBIA LAW SCHOOL WHICH QUICKLY HIRED JUDGE GINSBURG AS ITS FIRST TENURED FEMALE FACULTY MEMBER JUDGE GINSBURG CONTINUED CHAMPIONING SEXBIAS CASES AND IN 1973 ALSO BECAME GENERAL COUNSEL OF THE AMERICAN CIVIL LIBERTIES UNION THERE SHE WAS FOUNDER OF ITS WOMEN'S RIGHTS PROJECT SHE MOVED THE SUPREME COURT 180 DEGREES SAYS SUSAN DELLER ROSS A GEORGETOWN UNIVERSITY LAW PROFESSOR WHO WORKED FOR THE WOMEN'S RIGHTS PROJECT DURING THE 1970S SHE MADE THE EQUAL PROTECTION CLAUSE A MEANINGFUL VEHICLE FOR THE ANALYSIS OF SEX DISCRIMINATORY LAWS IN THE EARLY 1970S MS GINSBURG WON TWO IMPORTANT VICTORIES IN FRONTIERO VS RICHARDSON THE SUPREME COURT HELD THAT DEPENDENTS OF WOMEN IN THE MILITARY SHOULD HAVE THE SAME ACCESS TO ONBASE HOUSING AS MEN'S DEPENDENTS IN REED VS REED THE COURT OVERTURNED A STATE LAW THAT AUTOMATICALLY PREFERRED THE FATHER OVER THE MOTHER AS EXECUTOR OF A SON'S ESTATE MS GINSBURG REPRESENTED MEN IN SEXBIAS CASES TOO IN CRAIG VS BOREN SHE SUCCESSFULLY CHALLENGED AN OKLAHOMA LAW THAT ALLOWED WOMEN BUT NOT MEN TO BUY CERTAIN ALCOHOLIC BEVERAGES AT AGE 18 AS AN APPELLATE JUDGE A POSITION TO WHICH SHE WAS APPOINTED IN 1980 BY PRESIDENT CARTER SHE HAS HONED A REPUTATION AS A MODERATE JUDGE GINSBURG HAS RAISED EYEBROWS AMONG SOME LIBERALS BECAUSE OF HER CRITICISM OF THE SWEEPING NATURE OF THE ROE VS WADE DECISION IN WHICH THE HIGH COURT RECOGNIZED A SPECIAL CONSTITUTIONAL RIGHT TO ABORTION BASED ON PRIVACY THE ROE DECISION MAY HAVE PROLONGED DIVISIVENESS AND DEFERRED STABLE SETTLEMENT OF THE ABORTION CONTROVERSY SHE WROTE LAST YEAR IN CONSTITUTION MAGAZINE RATHER THAN BASING ROE ON AN INFERRED CONSTITUTIONAL RIGHT TO PRIVACY THE COURT WOULD HAVE BEEN BETTER ADVISED TO GROUND ITS DECISION IN THE EXPLICIT RIGHT TO EQUAL PROTECTION UNDER THE LAW SHE ARGUES THAT IDEA HAS BEEN PICKED UP AND PRESSED BY ABORTIONRIGHTS LAWYERS AND IN LAST YEAR'S PENNSYLVANIA ABORTION CASE THEY SUCCEEDED IN GETTING THE SUPREME COURT TO INTRODUCE THE NOTION OF EQUAL PROTECTION AS A BASIS FOR THE ABORTION RIGHT LEADERS OF WOMEN'S RIGHTS GROUPS EXPRESSED CAUTIOUS APPROVAL OF HER NOMINATION JUDGE GINSBURG HAS BEEN A STRONG ADVOCATE FOR WOMEN'S EQUALITY BUT HER CRITICISM OF ROE VS WADE IS CAUSE FOR CONCERN SAYS KATE MICHELMAN PRESIDENT OF THE NATIONAL ABORTION RIGHTS ACTION LEAGUE MARCIA GREENBERGER OF THE NATIONAL WOMEN'S LAW CENTER SAYS THAT JUDGE GINSBURG APPEARS TO SUPPORT ABORTION RIGHTS BUT LIKE MS MICHELMAN MS GREENBERGER SAYS THAT SENATE HEARINGS SHOULD BE USED TO FLESH OUT HER POSITION JUDGE GINSBURG GETS MORE CONSISTENT PRAISE FROM PROMINENT CONSERVATIVES SHE IS A CLOSE FRIEND OF JUSTICE ANTONIN SCALIA ONE OF THE HIGH COURT'S MOST ASSERTIVE CONSERVATIVE VOICES AND A FORMER COLLEAGUE OF HERS ON THE DC CIRCUIT ROBERT BORK ANOTHER FORMER APPEALS COURT COLLEAGUE CALLS HER A THOUGHTFUL BRIGHT CAREFUL JUDGE AMONG HER OPINIONS SHE UPHELD THE BROAD AUTHORITY OF THE FEDERAL COMMUNICATIONS COMMISSION TO REGULATE THE BROADCAST OF SEXUALLY EXPLICIT PROGRAMS BUT STRUCK DOWN THE FCC'S ATTEMPT TO LIMIT SUCH BROADCASTS TO AFTER MIDNIGHT ON BUSINESS AND REGULATORY MATTERS JUDGE GINSBURG'S VIEWS RANGE FROM MODERATE TO CONSERVATIVE SHE JOINED BORK ANTITRUST RULINGS IN THE 1980S FOR EXAMPLE THAT LIBERALS CITED DURING HIS FAILED 1987 SUPREME COURT NOMINATION AS EVIDENCE HE HELD EXTREME VIEWS PAUL M BARRETT AND RICHARD B SCHMITT CONTRIBUTED TO THIS ARTICLE 9306150004 930615 TECHNOLOGY BRIEF RAYOVAC CORP NEW RECHARGEABLE BATTERY MAY BE ANNOUNCED TODAY RAYOVAC CORP IS EXPECTED TODAY TO UNVEIL A FORM OF RECHARGEABLE BATTERY ALTHOUGH THE COMPANY IN MADISON WIS WOULDN'T DISCLOSE DETAILS IT HAS SAID IT PLANS TO MAKE A MAJOR PRODUCT ANNOUNCEMENT INDUSTRY OBSERVERS SAID THEY UNDERSTAND THE NEW PRODUCT IS INTENDED TO REPLACE NICKEL CADIUM BATTERIES THE MOST COMMON FORM OF RECHARGEABLE BATTERIES FOR USE IN TOYS AND CELLULAR TELEPHONES AND OTHER COMMUNICATIONS EQUIPMENT IN FEBRUARY THE COMPANY SAID IT HAD LICENSED TECHNOLOGY TO PRODUCE AN ALKALINE RECHARGEABLE BATTERY FROM BATTERY TECHNOLOGY INC OF CANADA CURRENTLY ALKALINE BATTERIES CAN'T BE RECHARGED SUCH A PRODUCT COULD HAVE AN IMPACT ON THE MARKET FOR DISPOSABLE ALKALINE BATTERIES 9306150003 930615 INDUSTRY FOCUS FARMEQUIPMENT SALES ARE RUNNING AT FULL THROTTLE BUT DEERE TENNECO COULD BE IN FOR BUMPY RIDE IN 2ND HALF IF REBOUND ENDS BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL BIGTICKET TRACTORS AND COMBINES HAVE BEEN BESTSELLERS ACROSS THE FARM BELT THIS SPRING REVERSING LAST YEAR'S SHARP DECLINE IN SALES BUT UNLESS FARM INCOME RISES FASTER THIS YEAR THAN ECONOMISTS PREDICT SALES BY FARMEQUIPMENT MAKERS COULD WILT LATER THIS YEAR THE ISSUE IS WHETHER THIS IS A CYCLICAL RECOVERY FOR THE INDUSTRY OR A BOUNCE BACK FROM DEPRESSED LEVELS LAST YEAR SAYS JOHN MACKIN A MORGAN STANLEY & CO FARMEQUIPMENT ANALYST AT THE MOMENT THE ODDS FAVOR THE BOUNCEBACK THEORY DEERE & CO AND THE JI CASE DIVISION OF TENNECO INC WHICH DOMINATE THE FARMEQUIPMENT INDUSTRY HAVE SOLD LOTS OF IRON THIS YEAR AS DEALERS SAY SALES OF LARGE TWOWHEEL DRIVE TRACTORS THE 100PLUS HORSEPOWER MODELS BECOMING STANDARD EQUIPMENT AS FARMS INCREASE IN SIZE HAVE BEEN SLOWLY GAINING GROUND SINCE THE FIRST OF THE YEAR AND DEALER INVENTORIES HAVE DECLINED DEERE HAS CAPTURED 45 TO 50 OF THE LARGE TRACTOR MARKET AND CASE ENJOYS A 35 TO 40 SHARE IN APRIL SALES OF BIG FARM EQUIPMENT SHIFTED INTO HIGH GEAR LARGE TRACTOR SALES JUMPED 71 COMPARED WITH DEPRESSED YEARAGO LEVELS AND APRIL SALES OF SELFPROPELLED COMBINES THE BULKY STEEL BOXES THAT LUMBER ACROSS FIELDS AT HARVEST TIME ADVANCED 50 SALES FOR ALL TRACTOR SIZES ADVANCED A MORE MODEST 178 IN APRIL FARMEQUIPMENT SALES ROARED AHEAD AGAIN LAST MONTH BIG TWOWHEEL DRIVE TRACTOR SALES JUMPED 564 IN MAY AND COMBINE SALES MORE THAN DOUBLED ACCORDING TO FIGURES FROM THE EQUIPMENT MANUFACTURERS INSTITUTE TOTAL TRACTOR SALES ROSE 261 IN MAY THE INSTITUTE SAID DEERE BASED IN MOLINE ILL REPORTED THAT FOR THE SECOND QUARTER ENDED APRIL 30 NORTH AMERICAN LARGE TRACTOR SALES WERE SUBSTANTIALLY HIGHER THAN LAST YEAR IT WOULDN'T SAY BY HOW MUCH AN 80 MILLION RESTRUCTURING CHARGE TO COVER THE COST OF CUTTING ABOUT 2000 JOBS IN ITS LACKLUSTER EUROPEAN DIVISION LEFT DEERE WITH A 31 DECLINE IN SECONDQUARTER NET INCOME TO 302 MILLION OR 39 CENTS A SHARE BUT BASED ON THE QUARTER'S SURGE IN RETAIL DEMAND DEERE SAID WORLDWIDE PRODUCTION OF AGRICULTURAL PRODUCTS IS SET TO INCREASE 5 THIS YEAR UP FROM PLANS FOR A 3 RISE INDUSTRIAL AND LAWNCARE EQUIPMENT PRODUCTION IS ALSO INCREASING THE COMPANY SAID WE ARE GUARDEDLY OPTIMISTIC ABOUT PROSPECTS FOR THE REMAINDER OF 1993 SAID HANS W BECHERER CHAIRMAN AND CHIEF EXECUTIVE DEERE'S STOCK IS SELLING AS WELL ON WALL STREET AS ITS TRADEMARK GREEN AND YELLOW TRACTORS ARE SELLING DOWN ON THE FARM THE SHARE PRICE IS TRADING AT A 52WEEK HIGH CLOSING YESTERDAY AT 6675 UP 1 YESTERDAY ON THE NEW YORK STOCK EXCHANGE CASE RACINE WIS ALSO SAID LARGE TRACTOR SALES SOARED IN APRIL AND COMBINE SALES WERE MUCH BETTER THAN THE 50 GAIN REPORTED FOR THE INDUSTRY THAT MONTH SAYS A SPOKESWOMAN FOR CASE'S HOUSTONBASED PARENT TENNECO OUR ENTIRE COMBINE PRODUCTION IS SOLD OUT IN 1993 SHE SAYS ADDING THAT CASE WHICH WAS PURCHASED BY TENNECO IN 1967 ISN'T WILLING TO PROVIDE EXACT PRODUCTION FIGURES BUT LIKE THE SIGNATURE RED COLOR OF CASE'S FARMEQUIPMENT LINE THE DIVISION IS OPERATING IN THE RED WHILE PARENT TENNECO REPORTED A PROFIT OF 74 MILLION OR 46 CENTS A SHARE FOR THE FIRST QUARTER ENDED MARCH 31 CASE HAD A 17 MILLION LOSS CASE ACCOUNTS FOR ABOUT 25 OF TENNECO'S REVENUE NEVERTHELESS THE FIRSTQUARTER LOSS AT CASE WAS MUCH LESS THAN MANY ANALYSTS HAD EXPECTED AND LOOKED GOOD COMPARED WITH THE YEAREARLIER 77 MILLION LOSS LARGELY AS A RESULT TENNECO SHARES HAVE BEEN TRADING NEAR THE HIGH END OF THEIR 52WEEK RANGE LATELY TENNECO CLOSED YESTERDAY AT 46875 UP 875 CENTS TENNECO HAS BEEN CHOPPING AWAY AT CASE'S EXCESS CAPACITY AND STAFF SINCE HARDCHARGING MICHAEL WALSH WAS APPOINTED TENNECO CHIEF EXECUTIVE IN 1991 IN THE LATEST PRODUCTION CUTBACK AIMED AT PARING INVENTORIES CASE YESTERDAY CLOSED FOR 17 WEEKS ITS RACINE TRACTOR PLANT THAT MAKES THE LARGE MAGNUM TRACTORS THAT DOESN'T BODE WELL FOR TENNECO SAYS JOHN STARK PUBLISHER OF STARK'S OFFHIGHWAY LEDGER A TRADE PUBLICATION SEVENTEEN WEEKS IS EXTRAORDINARY A SEVENWEEK SHUTDOWN IS NORMAL IN BAD YEARS HE SAYS BOTH CASE AND DEERE HAVE SEEN SHARP DECLINES IN EUROPEAN SALES AS DEERE'S 80 MILLION CHARGE ATTESTS BUT DEERE IS AT LEAST A YEAR AHEAD OF CASE IN RELOCATING PRODUCTION TO THE US FROM EUROPE TO TAKE ADVANTAGE OF THE BOOST GIVEN SALES INTERNATIONALLY BY THE RELATIVELY WEAK DOLLAR SEVERAL FACTORS CONTRIBUTED TO THE INDUSTRYWIDE JUMP IN UNIT SALES SO FAR THIS YEAR SAYS ROBERT W BUD PORTER DEERE'S DIRECTOR OF NORTH AMERICAN SALES BRANCHES HE CITES DECLINING FARMSECTOR DEBT AND LOW INTEREST RATES AS INCENTIVES ALSO DRIVING DEMAND IS THE FACT THAT MANY FARMERS HAVEN'T PURCHASED NEW TRACTORS OR COMBINES SINCE THE LATE '70S BOOM IN THE FARM ECONOMY WHICH PRECEDED THE EARLY '80S BUST AND IN DEERE'S CASE TWO NEW TRACTOR LINES INTRODUCED LAST FALL THE 6000 AND 7000 SERIES WEREN'T WIDELY AVAILABLE UNTIL THIS YEAR MR PORTER NOTES APPARENTLY MANY FARMERS ALSO HELD OFF BUYING FARM EQUIPMENT LATE LAST YEAR DUE TO RECURRENT SPECULATION THAT THE CLINTON ADMINISTRATION WOULD PROPOSE AN INVESTMENT TAX CREDIT THIS YEAR WHICH WOULD REDUCE THEIR AFTERTAX COSTS WHEN HOPES FOR A TAX CREDIT DIMMED AFTER THE INAUGURATION FARMERS APPARENTLY DECIDED IT WASN'T WORTH WAITING ANY LONGER WHY THE INCREASE IN APRIL AND MAY THE UNUSUALLY WET SPRING ACROSS MUCH OF THE MIDWEST LEFT FARMERS A RELATIVELY SHORT PERIOD BETWEEN THE TIME FIELDS WERE DRY ENOUGH TO PLANT AND THE DATES AFTER WHICH CROP YIELDS START TO DECLINE IF SEEDS HAVEN'T YET BEEN SOWN THAT MEANT MANY FARMERS REALIZED THEY WOULDN'T HAVE TIME TO DEAL WITH REPAIRING OLD EQUIPMENT THIS SPRING AND STILL GET A CROP IN THE FIELD SO THEY OPTED FOR NEW OR BIGGER TRACTORS SPECULATES ALAN BARKEMA SENIOR ECONOMIST FOR THE FEDERAL RESERVE BANK OF KANSAS CITY DEERE'S MR PORTER SAYS THAT BECAUSE THE COMPANY IS STILL DRAWING DOWN DEALER INVENTORIES DESPITE INCREASES IN PRODUCTION WE'RE OPTIMISTIC WE CAN SUSTAIN AN IMPROVED LEVEL OF SALES THROUGH 1993 THAT'S NOT SAYING MUCH CONSIDERING THAT LARGE TRACTOR SALES SKIDDED 25 LAST YEAR FROM 1991 LEVELS ECONOMISTS SAY THE KANSAS CITY FED'S MR BARKEMA SAYS THE AGRICULTURE DEPARTMENT'S ESTIMATE THAT NET FARM CASH INCOME THIS YEAR WILL LAND 58 BILLION TO 64 BILLION COMPARED WITH 59 BILLION LAST YEAR IS A BIT MORE OPTIMISTIC THAN I'D BE HE SAYS THAT 350 FARM BANKERS SURVEYED LAST QUARTER BY THE KANSAS CITY FED ESTIMATED THAT FARM INCOME THIS YEAR WOULD BE ABOUT THE SAME AS 1992 OR SLIGHTLY LOWER THE BANKERS BASED THEIR OUTLOOK MOST OFTEN ON LAST SEASON'S BUMPER OR NEARRECORD HARVESTS FOR MANY CROPS AND THE RESULTING LOW COMMODITY PRICES THIS YEAR MR BARKEMA SAYS HIGHER MEAT PRICES MADE THE BANKERS SLIGHTLY MORE OPTIMISTIC ABOUT LIVESTOCK FARMERS' INCOME THAN CROP FARMERS HE ADDS WHEN THE OUTLOOK FOR FARM INCOME IS FLAT OR DOWN IT GENERALLY SUGGESTS AT LEAST CAUTION ON THE PART OF EQUIPMENT BUYERS OR THAT FARMERS COULD PUT OFF EQUIPMENT PURCHASES ALTOGETHER MR BARKEMA SAYS 9306150002 930615 MARKETING & MEDIA MORE PEPSI CANS CONTAIN SYRINGES NEW REPORTS CLAIM BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL OFFICIALS SAID REPORTS OF CANS OF PEPSI SOFT DRINKS CONTAINING SYRINGES ARE INCREASING AND A WOMAN IN CALIFORNIA TOLD POLICE SHE HAD FOUND A SYRINGE IN A CAN OF DIET COKE THE NUMBER OF COMPLAINTS TOTALED LESS THAN 10 SAID JOHN O'HARA A SPOKESMAN FOR THE FOOD AND DRUG ADMINISTRATION HE DECLINED TO BE MORE SPECIFIC OTHER THAN TO SAY THAT THE REPORTS HAVE COME FROM DIFFERENT AREAS OF THE COUNTRY WHILE THE NEW COMPLAINTS REMAINED UNVERIFIED HE SAID THE AGENCY IS THOROUGHLY INVESTIGATING EACH REPORT LAST WEEK TWO FAMILIES IN THE SEATTLETACOMA AREA OF WASHINGTON STATE REPORTED FINDING SYRINGES IN CANS OF DIET PEPSI NO INJURIES HAVE BEEN REPORTED A SPOKESMAN FOR PEPSICO INC THE FOOD AND SOFTDRINK CONCERN BASED IN PURCHASE NY SAID THE COMPANY HAD NO PLANS TO RECALL ANY PRODUCTS BECAUSE OF THE ISOLATED NATURE OF THE INCIDENTS A RECALL ISN'T WARRANTED THE SPOKESMAN SAID HE ADDED THAT PEPSI IS ADVISING ITS TRADE CUSTOMERS NOT TO REMOVE PRODUCT FROM STORE SHELVES HE ALSO SAID THAT THERE WERE NO INDICATIONS THAT SALES HAD BEEN HURT THE SPOKESMAN FOR THE FDA SAID THE AGENCY HASN'T ASKED PEPSI TO WITHDRAW ANY PRODUCTS THE PEPSI SPOKESMAN SAID THE CURRENT SPATE OF TAMPERING IS THE SECOND INVOLVING PEPSI PRODUCTS THIS YEAR IN MARCH A MAN IN OKLAHOMA CITY SAID HIS LIPS HAD BEEN BURNED AFTER DRINKING A CAN OF PEPSI THAT ALLEGEDLY CONTAINED LYE EVENTUALLY THE INDIVIDUAL HIMSELF WAS FOUND TO HAVE PLACED THE FOREIGN SUBSTANCE IN THE CAN HE WAS CONVICTED OF PRODUCT TAMPERING ACCORDING TO PEPSI AND CURRENTLY FACES A MAXIMUM SENTENCE OF THREE YEARS IN PRISON AND A FINE OF 250000 THE PEPSI SPOKESMAN SAID HE COULDN'T CONFIRM HOW MANY CANS OF PEPSI PRODUCTS HAVE BEEN FOUND TO CONTAIN SYRINGES HE DID SAY SAY THAT ONE CASE HAD BEEN REPORTED IN NEW ORLEANS AND THAT THE COMPANY WAS ATTEMPTING TO CONTACT THE CONSUMER ALPAC CORP THE CLOSELY HELD PEPSI BOTTLER IN SEATTLE THAT DISTRIBUTED THE CANS FOUND WITH SYRINGES LAST WEEK SAID ITS OWN INVESTIGATION OF THE INCIDENTS IS CONTINUING THE FDA HAS BEEN CAMPING OUT WITH US FOR THE PAST THREE OR FOUR DAYS A SPOKESWOMAN SAID BUT SHE ADDED WE STILL HAVE NOTHING DEFINITIVE THE SYRINGES ACCORDING TO ALPAC APPEAR TO HAVE BEEN INSULIN NEEDLES WHICH ARE USED BY DIABETICS THE FDA IS EXAMINING PERSONNEL FILES AT THE COMPANY TO SEE WHETHER ANY FORMER OR CURRENT EMPLOYEES HAVE DIABETES OR OTHERWISE HAVE ANY NEED TO GIVE THEMSELVES INJECTIONS MEANWHILE A WOMAN IN VAN NUYS CALIF TOLD POLICE THAT SHE HAD BEEN STUCK IN THE GUMS BY A SYRINGE ALLEGEDLY FOUND INSIDE A SEALED CAN OF DIET COKE POLICE SAID THE WOMAN WASN'T INJURED A SPOKESMAN FOR COCACOLA CO IN ATLANTA SAID THE COMPANY IS TALKING WITH LAWENFORCEMENT AUTHORITIES HE ADDED THAT THE COMPANY HAS NO OTHER REPORTS OF TAMPERING JESSE MEYERS PUBLISHER OF BEVERAGE DIGEST A TRADE PUBLICATION SAID YESTERDAY THAT THE BEVERAGE INDUSTRY HAS A STRONG RECORD OF PUBLIC SAFETY WE LIVE IN A LITIGIOUS SOCIETY HE SAID AND IN MORE THAN ONE INSTANCE THE SOFTDRINK INDUSTRY HAS FOUND THAT PEOPLE HAVE PUT THINGS IN BOTTLES OR CANS THEMSELVES IN AN ATTEMPT TO SUE FOR DAMAGES IN THE PRODUCTION PROCESS IN BOTTLING PLANTS CANS ARE WASHED BEFORE THEY ARE FILLED TO ENSURE THERE IS NO FOREIGN DEBRIS THE CANS THEN PASS UNDER A NOZZLE USUALLY ONLY 1/16THINCH WIDE THAT SQUIRTS COKE OR PEPSI INTO THE CAN AND THE CAN IS QUICKLY SEALED WITH A DEVICE CALLED A SEAMER THAT ELECTRONICALLY SEALS THE PULLTAB ON THE CAN TOP THE PROCESS IS SO RAPID THAT IT WOULD BE DIFFICULT FOR A PERSON TO INSERT ANYTHING ELSE INTO A CAN THE SOFTDRINK INDUSTRY HAS PERIODICALLY HAD REPORTS OF FOREIGN OBJECTS IN CANS INCLUDING PAINT LYE AND FINGERNAIL CLIPPINGS OCCASIONALLY LAWSUITS HAVE EVEN CLAIMED RODENTS WERE ENTOMBED IN CANS THE MOST NOTORIOUS INCIDENT HOWEVER WAS THE 1990 PERRIER CONTAMINATION WITH A CLEANING SOLUTION SAID MR MEYERS YOU COULD PRACTICALLY SET YOUR TIME CLOCK THAT ONCE A YEAR THERE ARE THESE OUTBREAKS MICHAEL MCCARTHY IN ATLANTA CONTRIBUTED TO THIS STORY 9306150001 930615 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 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 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 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 313 30 TO 59 DAYS 314 60 TO 89 DAYS 316 90 TO 119 DAYS 324 120 TO 149 DAYS 327 150 TO 179 DAYS 325 180 TO 229 DAYS 335 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 319 30 DAYS 322 60 DAYS 326 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 268 TWO MONTHS 273 THREE MONTHS 291 SIX MONTHS 313 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 3125 ONE MONTH 320 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 306 30 DAYS 309 60 DAYS 312 90 DAYS 317 120 DAYS 322 150 DAYS 326 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 1/2 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 716 60 DAYS 724 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 714 60 DAYS 724 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306150109 930517 INTERNATIONAL WASHINGTON INSIGHT CLINTON ADMINISTRATION CAN PUT US BACK IN FOREFRONT OF POPULATION CONTROL BY TIM CARRINGTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMID THE HORRORS OF BOSNIA AND THE NUMBING PROBLEMS OF THE RUSSIAN ECONOMY ONE OF THE BEST CHANCES FOR THE CLINTON ADMINISTRATION TO SCORE A SUCCESS ON THE GLOBAL STAGE MAY BE IN HELPING STABILIZE THE WORLD'S POPULATION RECLAIMING LEADERSHIP IN POPULATION CONTROL WON'T BRING IMMEDIATE RESULTS OR GET EVEN ALL THAT MUCH NOTICE BUT LONG AFTER BILL CLINTON SETTLES INTO RETIREMENT PEOPLE AROUND THE WORLD MIGHT THANK HIM FOR TAKING STEPS THAT IMPROVED THE QUALITY OF THEIR LIVES IN CONTRAST TO MANY OF THE WORLD'S ECONOMIC AND ETHNIC PROBLEMS THERE'S NOTHING MYSTERIOUS ABOUT POPULATION PROGRAMS WHICH ESSENTIALLY AMOUNT TO GIVING PEOPLE THE WHEREWITHAL TO CONTROL THEIR REPRODUCTION THE PAYOFF IS SIMPLE DOZENS OF STUDIES SHOW THAT CHILDREN IN SMALLER FAMILIES ARE HEALTHIER AND MORE SECURE ECONOMICALLY PEOPLE IN RICH COUNTRIES KNOW THIS AND PLAN ACCORDINGLY INCREASINGLY PEOPLE IN POOR COUNTRIES KNOW IT TOO BUT DON'T HAVE THE SAME ACCESS TO BIRTH CONTROL A WORLD BANK STUDY FOUND THAT AS MANY AS 40 OF MARRIED WOMEN IN THE DEVELOPING WORLD WANT TO AVOID FURTHER CHILDBEARING BUT DON'T HAVE CONTRACEPTIVES TIMOTHY WIRTH THE STATE DEPARTMENT'S TOP OFFICIAL ON POPULATION MATTERS OFFICIALLY CLOSED A SOUR DIVISIVE DECADE FOR WASHINGTON ON POPULATION MATTERS WHEN HE TOLD THE UNITED NATIONS LAST WEEK THAT THE ADMINISTRATION WOULD RESUME SUPPORT FOR THE UN POPULATION FUND HE ALSO SAID ABORTION IS A NECESSARY PART OF ANY GLOBAL POPULATION EFFORT SNAGGED IN THE ABORTION QUESTION THE REAGAN AND BUSH ADMINISTRATIONS STOPPED FUNDING THE UN POPULATION FUND AND INTERNATIONAL PLANNED PARENTHOOD FEDERATION TWO OF THE MAIN PLAYERS IN POPULATION PROGRAMS IN GENERAL THE US BECAME A SURLY BYSTANDER IN INTERNATIONAL EFFORTS TO GIVE MORE FAMILIES AROUND THE WORLD A MEASURE OF CONTROL OVER THEIR FERTILITY IRONICALLY EXPERTS SAY ABORTIONS ACTUALLY MAY HAVE INCREASED DURING THE PERIOD BECAUSE THE LOSS OF FUNDS LEFT FAMILYPLANNING SERVICES LESS ABLE TO HELP WOMEN AVOID UNWANTED PREGNANCIES AT THE OUTSET THE CLINTON TEAM MUST FREE GLOBAL POPULATION PROGRAMS FROM THE IDEOLOGICAL FUROR THAT ENFLAMES THE DOMESTIC DEBATE OVER ABORTION RIGHTS FAMILY PLANNING IS SIMPLY A BASIC ELEMENT IN A POVERTYREDUCTION PROGRAM ARGUES RODOLFO BULATAO A SENIOR DEMOGRAPHIC SPECIALIST AT THE WORLD BANK THAT DOESN'T MEAN THE US SHOULD FUND COERCIVE STATERUN ABORTION POLICIES LIKE THOSE REPORTED IN CHINA INDEED THE UN POPULATION FUND MAY PULL OUT OF CHINA BECAUSE OF THESE PRACTICES JOSEPH SPEIDEL PRESIDENT OF POPULATION ACTION INTERNATIONAL ESTIMATES THAT TOPQUALITY FAMILYPLANNING SERVICES COST AN AVERAGE OF 16 A COUPLE A YEAR THE PAYOFF SHOULD HAVE APPEAL TO BIGPICTURE ECONOMISTS AND GRASSROOTS ACTIVISTS ALIKE RIGHT NOW 77 OF THE WORLD'S POPULATION LIVES IN DEVELOPING COUNTRIES AT CURRENT GROWTH RATES THAT WOULD RISE TO 83 BY 2025 AND 86 IN 2050 ASSOCIATED PROBLEMS OF MIGRATION ENVIRONMENTAL DAMAGE AND ECONOMIC HARDSHIP ARE MASSIVE ONE PROBLEM LIES IN WHAT EXPERTS CALL POPULATION MOMENTUM IN MANY POOR COUNTRIES THE POPULATION IS CONCENTRATED IN CHILDBEARING AGES THESE DEMOGRAPHICS TOGETHER WITH LOWER MORTALITY MEAN THE POPULATION WOULD GROW FOR A WHILE EVEN IF WOMEN HAD ONLY TWO CHILDREN APIECE THERE HAS BEEN SOME GOOD NEWS ON THE POPULATION FRONT DESPITE THE US FUNDING CUTOFFS THE 1980S SAW LOWER FERTILITY IN PARTS OF THE WORLD WHERE POPULATION PLANNERS HAD BEEN FRUSTRATED SUCH AS BANGLADESH AND SUBSAHARAN AFRICA AND OVERALL AVERAGE FERTILITY IN DEVELOPING COUNTRIES HAS FALLEN FROM SIX CHILDREN PER MOTHER IN THE 1960S TO FOUR CHILDREN TODAY MOREOVER EXPERTS SAY FAMILYPLANNING CATCHES ON MUCH FASTER THAN WAS ASSUMED EVEN IN COUNTRIES WHERE LARGE FAMILIES ARE PREFERRED THE WORLD BANK REPORTS THAT WITH WELLDESIGNED FAMILYPLANNING PROGRAMS IT TAKES ONLY 20 YEARS TO MOVE FROM A SITUATION WHERE THE AVERAGE MOTHER BEARS EIGHT CHILDREN TO ONE WHERE SHE BEARS ONLY TWO THESE SUCCESSES DON'T ELIMINATE THE PROBLEM BUT THEY DO MEAN THAT INTERNATIONAL FAMILYPLANNING EFFORTS HAVE AN EFFECT AND THAT IF THE US AND OTHERS SUMMON THE POLITICAL WILL TO SUPPORT THEM THEY WILL SHOW FURTHER RESULTS TODAY 46 BILLION IS SPENT ON POPULATION PLANNING IN DEVELOPING COUNTRIES BUT ONLY 1 BILLION OF THAT COMES FROM THE RICH DONOR COUNTRIES MR SPEIDEL IS CALLING FOR A DOUBLING OF ANNUAL OUTLAYS FROM ALL SOURCES BY THE END OF THIS DECADE MR WIRTH'S BIGGEST PROBLEM MAY BE THE CLINTONESQUE TENDENCY TO OVERLOAD THE AGENDA IN EARLY TALKS ADMINISTRATION OFFICIALS HAVE PROPOSED COMBINING FAMILYPLANNING PROGRAMS WITH A VARIETY OF OTHER HEALTH PROJECTS CERTAINLY EVERYTHING THEY'RE CALLING FOR IS DESIRABLE SAYS MR SPEIDEL BUT WITH LIMITED RESOURCES YOU'VE GOT TO PICK AND CHOOSE SEE RELATED LETTER LETTERS TO THE EDITOR US BETRAYS HERITAGE WITH POPULATION CONTROL WSJ JUNE 14 1993 9305170118 YY93 MM06 9306150087 930526 LETTERS TO THE EDITOR CAPITALISM ISN'T MORAL BUT IT IS REASONABLE FREEMARKET CONSERVATIVES LIKE MICHAEL NOVAK WILL LOSE THEIR BATTLE FOR CAPITALISM BY USING JUDEOCHRISTIAN ETHICS AS A DEFENSE FAITH AND THE FUTURE OF CAPITALISM LEISURE & ARTS APRIL 16 THE IDEA THAT MAN MUST LIVE AND PRODUCE TO SERVE OTHERS IS THE PREMISE NOT OF CAPITALISM BUT SOCIALISM SACRIFICE FOR AND DUTY TO STATE GOD OR SOCIETY ARE THE BASIC PRINCIPLES OF STATISM AND HISTORY OFFERS NAZI GERMANY AS EVIDENCE OF THEIR EXACT APPLICATION THE SPIRITUAL BASIS OF CAPITALISM ON THE CONTRARY IS RATIONAL SELFINTEREST CARRYING THE PHILOSOPHICAL BANNER OF ALTRUISM HAS GIVEN CONSERVATIVES EXACTLY WHAT THEY DESERVE A CLINTON PRESIDENCY RELIGIOUS DOMINATION OF THE REPUBLICAN PARTY ACCOMPLISHED THE DIFFICULT TASK OF MAKING CLINTON APPEAR REASONABLE TO THE ELECTORATE MR NOVAK'S JUDEOCHRISTIAN ETHICS ARE THE ROOT OF EVERY PART OF THE CLINTON ECONOMIC AGENDA FROM HIS PLAN TO SOAK THE RICH TO SOCIALIZED MEDICINE BY SHARING SELFSACRIFICE AS A MORAL CODE CONSERVATIVE INTELLECTUALS ARE LEFT TO THE PITIFUL EXERCISE OF CHAMPIONING ARCHAIC NOTIONS OF COLLECTIVISM SUCH AS NATIONAL SERVICE MR NOVAK AND HIS FELLOW CONSERVATIVES WILL NOT FIND A MORAL DEFENSE OF CAPITALISM IN THE BIBLE THE MORALITY OF CAPITALISM MAY BE FOUND IN AYN RAND'S NOVEL ATLAS SHRUGGED REALITY WILL PERMIT THAT THE FUTURE OF CAPITALISM IS NOT FAITH IT IS REASON LEWIS LEHRMAN'S REVERENTIAL REVIEW OF MR NOVAK'S LATEST BOOK CONTAINS SEVERAL PREPOSTEROUS STATEMENTS THE MOST EGREGIOUS OF WHICH IS THAT JUDEOCHRISTIAN ETHICS CREATED AND SUSTAINED CAPITALISM MR LEHRMAN SEEMS TO HAVE FORGOTTEN A BRIEF PERIOD OF HISTORY THE 1000 YEARS OF STAGNATION KNOWN POLITELY AS THE MIDDLE AGES WHEN JUDEOCHRISTIAN ETHICS FLOURISHED AND THE CEATIVE CAPACITY OF MAN WAS SUFFOCATED IN EUROPE INTELLECTUAL ACHIEVEMENT WAS SO SPARSE DURING THIS PERIOD UNDER THE CONTROL OF THE ROMAN CATHOLIC CHURCH THAT IT HAS ALSO BEEN LABELED THE DARK AGES THE TYPE OF THEOCRATIC DICTATORSHIP THAT WOULD MAKE MESSRS NOVAK AND LEHRMAN FEEL SAFE AND HAPPY WOULD BE A THROWBACK TO THE DARK AGES WHEN WHAT WE REALLY NEED IS ANOTHER RENAISSANCE SEE RELATED LETTER LETTERS TO THE EDITOR CAPITALISM'S MORAL CODE WSJ JUNE 15 1993 9305260098 YY93 MM06 9306150086 930513 THIN REWARDS SPRAWLING BUREAUCRACY EATS UP MOST PROFITS OF GIRL SCOUT COOKIES TROOPS GET A SMALL PORTION FROM CHILDREN'S EFFORTS SPURRING ANGRY BACKLASH BUT OFFICIALS DO GOOD DEEDS BY ELLEN GRAHAM STAFF REPORTER OF THE WALL STREET JOURNAL ELEVENYEAROLD KATHLEEN TOTZ IS A SMALL BUT IMPORTANT COG IN A SALES EFFORT UNIQUE IN THE ANNALS OF AMERICAN ENTERPRISE THIS YEAR THE SLIM BESPECTACLED GIRL SCOUT WAS THE TOP COOKIE SELLER IN WALLINGFORD CONN'S TROOP 265 TOTING UP 498 IN RECEIPTS FOR 166 BOXES AFTER FOUR YEARS' EXPERIENCE SHE CAN RATTLE OFF THE DIFFERENCE BETWEEN THIN MINTS AND SHORTBREADS IN HER SLEEP HER ONLY GRIPE IS CUSTOMERS WHO RENEGE ON ORDERS AS I SEE IT SHE SAYS PEOPLE SHOULD PAY BEFORE YOU DELIVER THE COOKIES BY DRIBS AND DRABS THE DOORTODOOR EARNINGS OF VOLUNTEERS LIKE KATHLEEN ADD UP THE ANNUAL COOKIE SALE THE GIRL SCOUTS' MAIN FUNDING SOURCE GENERATES AN ESTIMATED 400 MILLION IN REVENUE IT IS A VENTURE THAT SCOUT OFFICIALS LIKE TO PORTRAY AS GRASSROOTS VOLUNTEERISM IN ACTION A ROLLUPTHESLEEVES EFFORT THAT FURTHERS SCOUTING'S PROGRAMS AND TRADITIONS WHILE FOSTERING ENTREPRENEURSHIP AND SELFESTEEM AMONG THE NATION'S 26 MILLION GIRL SCOUTS I DON'T KNOW OF ANY OTHER ORGANIZATION THAT COULD PULL TOGETHER A CADRE OF VOLUNTEERS TO SELL SO MANY PRODUCTS SO SUCCESSFULLY IN SUCH A SHORT TIME SAYS PAT MACKEY CHIEF EXECUTIVE OFFICER OF SOUTHEAST LOUISIANA GIRL SCOUT COUNCIL IN NEW ORLEANS BUT MANY IN THIS VOLUNTEER CADRE THE SCOUTS TROOP LEADERS AND PARENTS WHO PROVIDE THE FREE LABOR ARE STARTING TO QUESTION THE ANNUAL COOKIE DRIVE SAYING THE TROOPS SIMPLY DON'T SEE ENOUGH OF THE PROFITS TAXFREE COOKIE PROCEEDS MAINLY SUPPORT THE GIRL SCOUTS' SPRAWLING BUREAUCRACY CRITICS SAY WHILE THE GIRLS THEMSELVES ARE LEFT WITH THE CRUMBS THIS YEAR A WEST HAVEN CONN TROOP LEADER WENT SO FAR AS TO LEAD A BOYCOTT OF THE COOKIE SALE AND TO COMPLAIN TO THE STATE ATTORNEY GENERAL ALLEGING AMONG OTHER THINGS THAT HER LOCAL COUNCIL WAS TAKING TOO BIG A CHUNK OF COOKIE PROFITS SHE WAS PROMPTLY DRUMMED OUT OF SCOUTING EVEN THE MOST DOGGED COOKIE SALESGIRLS DON'T GENERATE MUCH MONEY FOR THEIR TROOPS KATHLEEN'S PLUCK WILL EARN HER A STUFFED TOY A TSHIRT AND A BADGE FOR HER UNIFORM BUT ONLY 67 OF HER SALES WILL LAND IN TROOP 265'S TREASURY WHERE THERE ISN'T ENOUGH MONEY TO BUY ALL THE BADGES THE GIRLS EARNED THIS YEAR MOST OF KATHLEEN'S PROFITS WILL BE KEPT BY CONNECTICUT TRAILS COUNCIL THE GIRL SCOUTS' LOCAL ADMINISTRATIVE OFFICE IN NORTH HAVEN THE COUNCIL WHICH TRAINS VOLUNTEER TROOP LEADERS AND PLANS EVENTS RELIED ON COOKIE SALES TO FUND FULLY 66 OF ITS 35 MILLION 1992 BUDGET INCLUDING 16 MILLION IN SALARIES AND BENEFITS FOR 42 EMPLOYEES THERE ARE 332 SUCH REGIONAL SCOUT COUNCILS SCATTERED AROUND THE US EACH ONE WITH AN OFFICE AND A PAID STAFF OVERSEEN BY A VOLUNTEER BOARD SOME LARGER COUNCILS SERVING 12000 GIRLS OR MORE HAVE DOZENS OF EMPLOYEES TOGETHER THEY SPEND ABOUT 357 MILLION A YEAR WELL OVER HALF A COUNCIL'S INCOME TYPICALLY COMES FROM COOKIES THERE'S INCREDIBLE PRESSURE ON THESE LITTLE GIRLS TO SELL SAYS JAMES GRAFTON RANDALL AN ATTORNEY IN ANAHEIM HILLS CALIF WHO TOOK THE GIRL SCOUTS TO COURT IN A RELIGIOUS DISCRIMINATION SUIT BROUGHT BY A BROWNIE THE SCOUTS ARE USED AS UNPAID SALESPEOPLE FOR THIS MULTIMILLIONDOLLAR ORGANIZATION TO PAY FOR STAFF AND ADMINISTRATIVE COSTS AND BUILDINGS AT GIRL SCOUTS OF THE USA THE NATIONAL HEADQUARTERS IN NEW YORK A SPOKESWOMAN SAYS THE LOCAL COUNCILS NEED THAT BIG CUT OF PROFITS BEING A GIRL SCOUT LEADER REQUIRES A GOOD DEAL OF EXPERTISE A LOT OF A COUNCIL'S REVENUE GOES FOR DISTRIBUTING BASIC INFORMATION SO THAT WE HAVE ALL OF OUR 800000 ADULT VOLUNTEERS IN SYNC SHE SAYS WE ARE DEALING WITH CHILDREN SO WE HAVE TO BE VERY VERY PRECISE IN WHAT WE DO SHE ADDS THAT THE DECENTRALIZED NETWORK OF LOCAL COUNCILS IS ESSENTIAL TO MAKE SCOUTING RELEVANT TO THE NEEDS OF A PARTICULAR PLACE GIRL SCOUTS USA DOESN'T SHARE IN THE LOCAL COUNCILS' COOKIE PROCEEDS THOUGH IT DOES GET A 2 ROYALTY FROM THE COMMERCIAL BAKERS' NET SALES COUNCIL ADMINISTRATORS' SALARIES RANGING UP TO ALMOST 90000 AREN'T EXCESSIVE BY NONPROFIT STANDARDS BUT WHAT CRITICS FIND UNSEEMLY IS THE GIRL SCOUTS' AGGREGATE OVERHEAD AND THE DEGREE TO WHICH IT IS SUPPORTED BY CHILD LABOR TRADITIONAL SCOUTING OCCURS AT THE TROOP LEVEL THEY MAINTAIN WHERE VOLUNTEER LEADERS GIVE TIRELESSLY OF THEIR TIME AND MONEY TO SEE THAT THE BADGE WORK CAMPING AND GOOD DEEDS GO ON AS ALWAYS BY CONTRAST THEY SAY PAID COUNCIL EMPLOYEES SERVE MAINLY AS POLICYENFORCERS AND SUPERVISORS THE SALES MACHINE NEEDED TO SUSTAIN THIS VAST ADMINISTRATIVE APPARATUS CRITICS SUGGEST HAS COME TO OVERSHADOW SCOUTING'S PHILANTHROPIC MISSION RECENTLY A CALIFORNIA COURT ACKNOWLEDGED THAT THE YOUNG SALES FORCE IS INDEED FINANCING A BIG BUSINESS A SIXYEAROLD GIRL LAST YEAR SUED THE SAN DIEGO AREA GIRL SCOUT COUNCIL AFTER BEING DENIED MEMBERSHIP BECAUSE SHE WOULDN'T SAY THE WORD GOD IN THE GIRL SCOUT PROMISE MR RANDALL HER ATTORNEY ARGUED THAT THE GIRL SCOUTS' SAN DIEGOIMPERIAL COUNCIL IS A BUSINESS THAT NETS ALMOST 3 MILLION ANNUALLY IN COOKIE PROFITS ALONE AND THUS CAN'T BY LAW DISCRIMINATE LAST DECEMBER JUDGE VINCENT P DI FIGLIA OF STATE SUPERIOR COURT IN SAN DIEGO AGREED AND ISSUED A PRELIMINARY INJUNCTION PROHIBITING THE SCOUTS FROM EXCLUDING THE BROWNIE THE GIRL SCOUTS HAVE FILED AN APPEAL EACH COUNCIL RUNS ITS OWN COOKIE SALE SETTING THE PRICE PER BOX WHICH THIS YEAR RANGED BETWEEN 2 AND 3 AND DIVIDING THE PROCEEDS AS IT SEES FIT TYPICALLY TROOPS GET 10 TO 15 THE COUNCIL TAKES OVER HALF AND THE MANUFACTURER GETS THE REST LAST YEAR THE SCOUTS SOLD 175 MILLION BOXES YET CRITICS COMPLAIN THAT AFTER TAKING A MAJORITY SHARE OFF THE TOP THE COUNCILS ACT LIKE THE PROVERBIAL COMPANY STORE THEY TAP THE TROOPS' MUCH PUNIER SHARE BY CHARGING SCOUTS FEES FOR EVERYTHING FROM CAMPING TO THE BADGES THEY EARN ESTHER MANNAH'S HARRIMAN NY BROWNIE TROOP EARNED A PROFIT OF 170 SELLING COOKIES THIS YEAR BUT 60 OF THIS WENT BACK TO THE COUNCIL SHE SAYS TO BUY FLAGS THE TROOP NEEDED TO MARCH IN A ST PATRICK'S DAY PARADE SHE ADDS PEOPLE BUY COOKIES THINKING IT'S FOR SCOUTS NOT KNOWING THE GIRLS ONLY GET 40 CENTS A BOX GIRL SCOUTS' RELIANCE ON COOKIE PROFITS OR GIRLGENERATED INCOME AS IT IS CALLED IS A TOUCHY SUBJECT IN SCOUT CIRCLES COUNCILS INSIST THEY ARE WORKING TO DIVERSIFY FUND RAISING BUT WITHOUT A NETWORK OF CORPORATE DONORS AND WITH UNITED WAY SUPPORT DECLINING IN RECENT YEARS THEY HAVE FEW ALTERNATIVES COOKIE MERCHANDISING HAS COME A LONG WAY SINCE THE 1920S WHEN SCOUTS FIRST VENTURED OUT WITH WICKER BASKETS OF HOMEBAKED COOKIES TODAY THEY WATCH TRAINING VIDEOS AND PLAY TRIVIA GAMES TO HONE SELLING SKILLS INCENTIVES LIKE EMBROIDERED MARKETING PATCHES SHOWING AN UPWARD TREND LINE INSPIRE GIRLS TO RACK UP SPECTACULAR NUMBERS RACHEL SCHLEIFSTEIN A NEW ORLEANS 11YEAROLD SOLD 662 BOXES THIS YEAR AND INDIVIDUAL TOTALS OF 1000 BOXES AREN'T UNHEARD OF CHERRY MANA A THOUSAND OAKS CALIF SCOUT LEADER SAYS OLDER GIRLS TIRE OF SUPERMARKET BOOTH SALES AND DOORTODOOR PEDDLING THE CUTENESS IS NOT QUITE THERE AS MUCH AS IT USED TO BE SHE SAYS SO SHE HAS THEM PLACE NEWSPAPER ADS OR THROW TUPPERWARESTYLE COOKIE PARTIES OTHER TROOPS TELEMARKET OR STAFF COOKIE FAX LINES PARENTS WHO TODAY DO A LOT OF THE SELLING ARE ENCOURAGED TO TAKE ORDERS AT WORK WHERE COOKIE TURF DISPUTES AND PRICE WARS SOMETIMES ERUPT AMONG COWORKERS AS WHEN NEIGHBORING COUNCILS SET DIFFERENT PRICES FOR THE SAME PRODUCT EACH COUNCIL STRIKES ITS OWN DEAL WITH ONE OF TWO BAKERIES THAT PRODUCE THE PRODUCT ABC INTERBAKE FOODS IN RICHMOND VA AND LITTLE BROWNIE BAKERY IN LOUISVILLE KY BOTH OF WHICH DECLINE TO COMMENT THE COUNCILS CUT A HARD BARGAIN WORKING ONE COMPANY AGAINST ANOTHER SAYS A FORMER INTERBAKE EXECUTIVE THE COUNCILS ALSO PLAY HARDBALL WITH THEIR SALES FORCE IN SOME AREAS UNLESS TROOPS PARTICIPATE IN THE COOKIE DRIVE AND SOMETIMES CALENDAR AND MAGAZINE DRIVES THEY CAN'T RAISE FUNDS ON THEIR OWN AND NATIONAL GIRL SCOUT RULES BAR THEM FROM RAISING MONEY FOR OUTSIDE CAUSES NO MATTER HOW WORTHY LUCY SMEGIELSKI SAYS THAT LAST YEAR SHE WAS REPRIMANDED BY CONNECTICUT TRAILS AFTER HER PROSPECT CONN TROOP DONATED 1000 THEY HAD RAISED IN A BOTTLE DRIVE TO A HOMELESS SHELTER NOW WHEN THE TROOP RAISES FUNDS FOR THE NEEDY IT DOES SO AS THE PROSPECT YOUTH GROUP NOR IS THERE ROOM FOR ERROR IN A TROOP'S COOKIE SALES PROJECTIONS WHEN TROOPS HOLD BOOTH SALES UNSOLD COOKIES CAN'T BE RETURNED AND THE TROOPS MUST PAY THEIR LOCAL COUNCILS FOR LEFTOVERS THE STRESS ASTONISHES A FORTUNE 500 MARKETING EXECUTIVE IN CINCINNATI WHOSE WIFE WAS A COOKIE MONITOR THIS YEAR I'VE BEEN WATCHING MY WIFE SWEAT HE SAYS SHE HAS 700 COLLECTED AND NEEDS 2300 PEOPLE AREN'T RETURNING PHONE CALLS THEY HAVEN'T PAID YET MY WIFE WROTE A CHECK TO SATISFY THE GIRL SCOUT DEADLINE NOW IT'S UP TO HER TO COLLECT THIS YEAR'S COOKIE SALE JUST CONCLUDED WAS ESPECIALLY ACRIMONIOUS IN PARTS OF CONNECTICUT A WEST HAVEN TROOP LEADER BETH DENTON LED A COOKIE BOYCOTT TO PROTEST THE WAY THE CONNECTICUT TRAILS COUNCIL APPORTIONS REVENUE MRS DENTON CLAIMS TROOPS AREN'T GETTING A PROMISED 14 OF PROCEEDS OR 42 CENTS A BOX SHE FIGURES THE GIRLS ARE BEING SHORTCHANGED TWO CENTS A BOX SHE ALSO OBJECTS TO THE 16 MILLION IN SALARIES AND BENEFITS PAID TO 42 COUNCIL EMPLOYEES IN FISCAL 1992 IN FEBRUARY AFTER MRS DENTON COMPLAINED TO THE STATE ATTORNEY GENERAL THE COUNCIL DISMISSED HER AS A LEADER THOUGH HER ROGUE TROOP CONTINUES TO MEET ATTORNEY GENERAL RICHARD BLUMENTHAL WON'T COMMENT ON HIS INQUIRY WHILE IT IS STILL UNDER WAY OFFICIALS AT CONNECTICUT TRAILS WHICH REPRESENTS 23000 GIRLS IN TOWNS SPREAD OVER HALF THE STATE DECLINE TO BE INTERVIEWED ABOUT THE BOYCOTT BUT IN A STATEMENT THE COUNCIL SAYS SALES INCENTIVES LIKE THE TSHIRT KATHLEEN TOTZ GOT FOR BEING HER TROOP'S TOP SELLER CAN ADD UP TO AS MUCH AS FOUR CENTS A BOX THE COUNCIL ALSO SAYS GIRLS BENEFIT FROM 120 DIFFERENT ACTIVITIES IT SPONSORS ANNUALLY ITS FIVE CAMPGROUNDS AND FROM THE TRAINING IT OFFERS TROOP LEADERS IT CITES ITS OUTREACH TO POOR NEIGHBORHOODS INCLUDING AFTERSCHOOL PROGRAMS IN INNERCITY SCHOOLS AND TROOPS IN HOMELESS SHELTERS IT SAYS ITS SALARIES ARE LOWER THAN AVERAGE FOR NONPROFITS AND GO MAINLY TO EMPLOYEES PROVIDING DIRECT SERVICES TO GIRLS EXECUTIVE DIRECTOR DIANE DEL PIZZO EARNED 76925 IN SALARY AND BENEFITS LAST YEAR ACCORDING TO DOCUMENTS FILED WITH THE STATE ATTORNEY GENERAL MRS DENTON REMAINS UNMOVED SCOUTS PAY ANYWHERE FROM A FEW DOLLARS TO 50 EACH TO PARTICIPATE IN ANY COUNCIL ACTIVITY SHE SAYS WHILE LEADERS PAY TO ATTEND TRAINING CLASSES EVEN THOUGH THE COURSES ARE TAUGHT MOSTLY BY VOLUNTEERS TROOPS ARE ALSO PRESSED TO DONATE TO ANNUAL SCOUT GIVING CAMPAIGNS AND WHEN THE COUNCIL HELD ITS TESTIMONIAL DINNER FOR VOLUNTEERS LAST YEAR SHE AND OTHER LEADERS SAY THEY WERE URGED TO USE TROOP COOKIE MONEY TO PAY FOR THEIR RESTAURANT MEAL THE COUNCIL SAYS TO GIRLS RAISE THE MONEY AND THEN GIVE IT BACK MRS DENTON COMPLAINS SHE TICKS OFF THE TROOP CAMPING FEES QUOTED IN THIS YEAR'S LEADER'S MANUAL FOR RUSTIC 51ACRE CAMP MURRAY A BAREBONES CAMPGROUND IN EAST HAVEN 38 A NIGHT PLUS 1 A HEAD FOR USE OF A DORMITORYSTYLE CHALET AND AN ADDITIONAL 5 PER TROOP TO WALK THE NATURE TRAIL 5 TO USE THE PLAYING FIELD AND 5 TO USE THE PICNIC AREA AND WE BRING OUR OWN FOOD AND CLEAN THE LATRINES SHE FUMES CONNECTICUT TRAILS SAYS IT TOOK IN 414000 IN CAMPING FEES IN FISCAL 1992 THE COUNCIL SAYS IT SPENT MORE THAN 691000 TO OPERATE AND MAINTAIN THE CAMPS WITH TROOPS OPERATING ON A SHOESTRING LEADERS SAY THEY OFTEN MUST REACH INTO THEIR OWN POCKETS LAST YEAR RUTH COSTA'S WEST HAVEN TROOP KEPT 370 OF THE 2750 IT RAISED SELLING COOKIES HALF THOSE PROFITS EVAPORATED WHEN IT HAD TO REPAY THE COUNCIL FOR UNSOLD GIRL SCOUT CALENDARS ONCE YOU ORDER YOU'RE STUCK WITH THEM SHE SAYS WE ATE THE DIFFERENCE MRS COSTA KEPT THE TROOP GOING WITH 400 OF HER OWN FUNDS THE FINANCIAL DRAIN WAS ONE REASON SHE HAS LEFT SCOUTING THOUGH MRS DENTON'S BOYCOTT FAILED TO SPREAD MUCH BEYOND WEST HAVEN WHERE SEVERAL TROOPS REFUSED TO SELL MANY LEADERS AROUND THE STATE PRIVATELY APPLAUD HER EXPLAINING WHY SHE DOESN'T SPEAK OUT ONE SAYS I'M AFRAID I'D BE DISMISSED I'VE BEEN WITH MY GIRLS SINCE THEY WERE FIVE YEARS OLD IT WOULD KILL ME SUCH CONCERNS ARE WELLFOUNDED FOR THE GIRL SCOUTS DO NOT TAKE KINDLY TO RENEGADES YOU EITHER MARCH TO THEIR TUNE OR THEY WILL KICK YOU OUT OF THE BAND SAYS MR RANDALL THE CALIFORNIA ATTORNEY CONNECTICUT TRAILS' STATEMENT NOTES THAT ITS 12 PAID FIELD EXECUTIVES EXIST TO ENSURE PROPER ENFORCEMENT OF ITS POLICIES PAT MCCARTHY OF LEBANON A BROWNIE LEADER WHO CIRCULATED A PETITION TO HAVE MRS DENTON REINSTATED FINDS THE STIFLING OF DISSENT IRONIC FOR AN ORGANIZATION THAT AWARDS BADGES TO GIRLS WHO LOBBY FOR A CAUSE HORRIFIED BY BETH DENTON'S FIRING MRS MCCARTHY SAYS SHE CONTACTED THE STATE HUMAN RIGHTS COMMISSION BEFORE STARTING HER PETITION DRIVE SO I DON'T FALL PREY TO THE SAME RETALIATION AT A FEBRUARY MEETING SHE SAYS SHE CONFRONTED MS DEL PIZZO THE COUNCIL'S EXECUTIVE DIRECTOR WITH THIS QUESTION WOULD I BE FIRED IF I EXERCISED MY FIRST AMENDMENT RIGHT TO FREE SPEECH AND PEACEFUL PROTEST THE ANSWER WAS YES I PROBABLY WOULD MS DEL PIZZO'S RECOLLECTION OF HER REPLY IS THAT IT WOULD DEPEND ON CIRCUMSTANCES IF A VOLUNTEER DOESN'T WISH TO FOLLOW THE EXPECTATIONS OUTLINED IN THEIR MANUALS YES THAT COULD BE GROUNDS FOR DISMISSAL TROOP LEADERS IN CONNECTICUT GRIPE THAT ALTHOUGH THEY ARE REQUIRED TO ACCOUNT FOR EVERY PENNY RAISED THEY HAVE NEVER SEEN A CONNECTICUT TRAILS BALANCE SHEET WHILE MS DEL PIZZO CONCEDES VOLUNTEERS AREN'T SENT AN ANNUAL REPORT SHE SAYS A FINANCIAL STATEMENT IS DISTRIBUTED TO LEADER DELEGATES FOR ITS ANNUAL MEETING SHE ADDS THAT VOLUNTEERS DON'T REALIZE THE MYRIAD HIDDEN COSTS THE COUNCIL ABSORBS FROM PRINTING MANUALS TO INSURANCE TO MAINTAINING PROPERTIES SAYS SUE MCKERNAN OF PROSPECT I REALLY DON'T KNOW AS A LEADER WHERE ALL THE MONEY GOES IT SEEMS THAT FROM HEADQUARTERS ON DOWN GIRL SCOUTS ARE CAUGHT UP IN THE SAME BUREAUCRATIC RED TAPE AND OVER GOVERNMENT WE SEE IN OUR NATIONAL GOVERNMENT IT'S GOTTEN TOO BIG WITH 400 MILLION IN COOKIE REVENUE MOST OF IT CASH PASSING THROUGH THE HANDS OF THREE MILLIONPLUS VOLUNTEERS EACH YEAR IT ISN'T SURPRISING THAT SOME OF IT GOES ASTRAY IT'S A NATIONWIDE PROBLEM SAYS JERRY HATHAWAY AN INVESTIGATOR FOR THE PIMA COUNTY ATTORNEY'S OFFICE IN TUCSON ARIZ WHICH HAS HANDLED SEVERAL COOKIE EMBEZZLEMENT CASES IN RECENT YEARS THE SAHUARO GIRL SCOUT COUNCIL IN TUCSON SAYS PROCEDURES HAVE BEEN TIGHTENED AND THAT OF 14 MILLION IN COOKIE RECEIPTS LAST YEAR IT FAILED TO COLLECT ONLY ABOUT 1400 IN ONE ALASKA CASE 664000 MOST OF IT COOKIE MONEY WAS EMBEZZLED FROM THE GIRL SCOUTS SUSITNA COUNCIL IN ANCHORAGE THE CULPRIT WHO IN 1990 PLEADED NO CONTEST TO FIRSTDEGREE THEFT WAS A TROOP LEADER EMPLOYED AS A COUNCIL BOOKKEEPER BEFORE SHE WAS CAUGHT AND IMPRISONED SAYS PROSECUTOR MARY ANNE HENRY ANCHORAGE'S ASSISTANT DISTRICT ATTORNEY SHE SPLURGED ON TRIPS TO ENGLAND LIMOUSINES AND JEWELRY SEE RELATED LETTERS LETTERS TO THE EDITOR GIRL SCOUTS' BIGTIME PROBLEMS WSJ JUNE 15 1993 9305130009 YY93 MM06 9306150014 930505 THE NEW SEGREGATION BY DONALD EASTMAN AT THE ENTRANCE TO THE ATLANTA AIRPORT THERE IS APPROPRIATELY A SHRINE TO ATLANTA'S MOST FAMOUS CITIZEN ITS PICTURES PERSONAL OBJECTS AND BRIEF NARRATIVE FOLLOW THESE WORDS OF MARTIN LUTHER KING EMBLAZONED AS AN INTRODUCTORY PRAYER TO THE DISPLAY SEGREGATION IS THE BURDEN OF THE NEGRO AND THE SHAME OF AMERICA THE HEROIC LEADERSHIP AND EXTRAORDINARY EXAMPLE OF ATLANTA'S OWN DR KING THE SPIRITUAL PHYSICIAN TO OUR NATIONAL APARTHEID IS ONE OF THE GREAT AND COMPELLING SAGAS OF OUR NATIONAL HISTORY TWENTYFIVE YEARS AFTER HIS DEATH THOUGH MARTIN LUTHER KING WOULD WEEP NOT ONLY AT THE PERSISTENCE OF SEGREGATION IN AMERICA BUT AT THE NEW ADHERENTS IT HAS FOUND ONCE THE BURDEN OF THE NEGRO SEGREGATION HAS NOW BECOME A POLITICALLY CORRECT COMFORT ZONE FOR AFRICANAMERICANS TO JUDGE BY THE MANY BLACK LEADERS TEACHERS STUDENTS AND MINISTERS WHO PREACH THE RHETORIC OF SEPARATISM AND RACISM BLACK HIGHSCHOOL AND COLLEGE STUDENTS ARE OFTEN PRESSURED BY OTHER BLACK STUDENTS TO AVOID INTEGRATING FRATERNITIES SORORITIES AND OTHER WHITEMAJORITY ORGANIZATIONS THEY ARE ENCOURAGED TO STAY WITH THEIR OWN RACIALLY SEGREGATED CLUBS EVENTS BEAUTY PAGEANTS AND OTHER ACTIVITIES FOR BLACK STUDENTS ARE ENCOURAGED FOR THE PURPOSE OF BUILDING ETHNIC PRIDE AND BLACK LEADERS FROM JESSE JACKSON TO JOHNETTA COLE DEFEND BLACK SEGREGATION ON SOCIOLOGICAL AND EDUCATIONAL GROUNDS IT'S A BLACK THING YOU WOULDN'T UNDERSTAND IS A TSHIRT MOTTO FOR THE NEW SEGREGATION TO THOSE OF US WHO GREW UP IN THE '60S AND '70S AND SAW LIVES LOST IN THE BATTLE FOR CIVIL RIGHTS THIS NEW SEGREGATION IS PARTICULARLY PAINFUL I CANNOT BELIEVE THAT ROSA PARKS HAD THE COURAGE TO SIT IN THE FRONT OF A BUS IN MONTGOMERY WITH THE EXPECTATION THAT A FEW SHORT DECADES LATER SEPARATEBUTEQUAL WOULD BE CONSIDERED THE RIGHT WAY TO GO I CANNOT BELIEVE THAT THIS IS THE RESULT FOR WHICH MARTIN LUTHER KING GAVE HIS LIFE OR FOR WHICH CHENEY GOODMAN SCHWERNER AND SO MANY OTHERS WERE SO BRUTALLY MARTYRED THERE IS NO JUSTIFIABLE MORAL DEFENSE FOR ETHNIC OR RACIAL SEGREGATION IN AMERICA BY BLACKS OR WHITES BY JEWS OR CHRISTIANS BY HISPANICS OR KOREANS THE CONTENTION THAT AMERICAN BLACKS NEED SEPARATIST CLUBS SCHOOLS AND COLLEGES BECAUSE OF THE CONTINUING ABUSES OF THE WHITE CULTURE IS RACIST CANT A POLITICALLY CORRECT EMPEROR WITHOUT ANY CLOTHES MANY I SUSPECT MOST MOTHERS AND FATHERS AGREE MANY OF THEIR CHILDREN THOUGH HAVE BEEN LED BY THEIR SCHOOLS AND SOME OF THE MOST VISIBLE OF OUR BLACK LEADERS TO BELIEVE THAT BLACK SEGREGATION IS A VIABLE OPTION FOR THEIR FUTURE AMERICAN HIGH SCHOOLS HAVE BECOME RACIAL BATTLEFIELDS IN WHICH SEGREGATION IS THE RULING ETHIC FOR ALL TOO MANY BLACK AND WHITE TEENAGERS BLACK CULTURE MEANS A CONSTANT BARRAGE OF TEASING HIGHFIVING LOUDMOUTHING PROFANITY INATTENTION DISRESPECT AND STUDIED NONCHALANCE BLACK STUDENTS WHO DEFY THE PHYSICAL ANTIINTELLECTUAL ANTIINSTITUTIONAL HORSEPLAY THAT PASSES FOR NORMAL BEHAVIOR IN MANY HIGH SCHOOLS ARE OFTEN INSULTED AND FORCED TO DUMB DOWN OR ARE OSTRACIZED BY BLACK STUDENTS SEEKING SEGREGATED SOLIDARITY THERE IS NOTHING MORE FOREIGN TO THE ALLEMBRACING HUMANITY OF THE GREAT AFRICANAMERICAN ARTISTS FROM LOUIS ARMSTRONG TO MAYA ANGELOU THAN THE ANARCHIC AGNOSTICISM OF THE CONTEMPORARY PUBLIC HIGH SCHOOL UNDER THE GUISE OF RESPECTING THE ETHNIC BASIS OF THAT SEGREGATION AMERICAN SCHOOLS HAVE BEGUN TO ACCEPT BEHAVIOR THAT SIMPLY PROHIBITS LEARNING MISGUIDED USUALLY WELLMEANING ADMINISTRATORS AND TEACHERS BLACK AND WHITE ARE PERMITTING THE NORMS OF ACCEPTABLE BEHAVIOR TO BE SET BY ADOLESCENTS THE RESULTS OF SUCH CONTINUED RACIAL DIVISIVENESS ARE DEVASTATING WE NOW LIVE IN A NATION IN WHICH THERE IS DAILY ARMED WARFARE IN OUR SCHOOLS A SOUTH CENTRAL LOS ANGELES LURKS UNDER THE SURFACE OF VIRTUALLY EVERY CITY AND TOWN IN AMERICA SEGREGATION IS NOT MERELY THE BURDEN OF THE NEGRO IT IS THE CURSE OF ALL AMERICANS THE NEW SEGREGATION IS NOT ONLY NO BETTER THAN THE OLD SEGREGATION WAS IT IS WORSE NOW THE RACIST NONSENSE OF THE KU KLUX KLAN IS MATCHED BY A MUCH MORE SUBTLE AND EVENTUALLY MORE DESTRUCTIVE NONSENSE A BELIEF THAT BLACK AMERICANS CAN ACHIEVE FULL ECONOMIC AND POLITICAL PARITY WITH WHITE AMERICANS AND MAINTAIN A SEPARATE CULTURE AT THE SAME TIME IT WILL NOT HAPPEN THOSE WHO DEFEND BLACKONLY EXPERIENCES BLACK FRATERNITIES COLLEGES AND THE LIKE OFTEN DO SO ON THE BASIS OF THE OPPORTUNITIES FOR LEADERSHIP FOR BLACK STUDENTS WHICH THEY CLAIM ARE SO MUCH GREATER IN SEGREGATED ENVIRONMENTS THE TRUTH IS THAT SEGREGATED LEADERSHIP IS NO LONGER WHAT THIS COUNTRY NEEDS THAT LEADERSHIP ON THE BASIS OF RACE IS WHAT WE MUST NOW PUT BEHIND US OUR LEADERS MUST SPEAK FOR AND REPRESENT AN INTEGRATED SOCIETY OR THEY WILL BE LITTLE MORE THAN DEMAGOGUES THOSE WITH THE MOST TO LOSE FROM THE NEW SEGREGATION ARE BLACK STUDENTS WHO WILL EITHER LEARN TO PROSPER IN AN INTEGRATED SOCIETY OR WILL NOT PROSPER AT ALL BLACK STUDENTS AND THEIR PARENTS MUST REJECT THE TEACHERS AND SCHOOL ADMINISTRATORS WHO ARE AIDING AND ABETTING THE RESEGREGATION OF AMERICAN COLLEGES AND SCHOOLS AND THEY MUST DEMAND HIGH STANDARDS OF DISCIPLINE AND BEHAVIOR FOR THEIR CHILDREN IN THEIR SCHOOLS MR EASTMAN IS VICE PRESIDENT FOR DEVELOPMENT AND UNIVERSITY RELATIONS AT THE UNIVERSITY OF GEORGIA SEE RELATED LETTER LETTERS TO THE EDITOR RADICAL BUT NICE WSJ MAY 27 1993 SEE RELATED LETTER LETTERS TO THE EDITOR IN FACT WE'RE STILL NOT EQUAL WSJ JUNE 15 1993 9305050067 YY93 MM05 9305270071 YY93 MM06 9306140161 930614 JUDGE THREATENS TO DIRECT JURY TO FIND DUPONT LIABLE FOR BENLATE DAMAGES BY SCOTT MCMURRAY STAFF REPORTER OF THE WALL STREET JOURNAL COLUMBUS GA A FEDERAL JUDGE CONCLUDING THAT DUPONT CO WITHHELD KEY DOCUMENTS FROM GROWERS WHO ALLEGE THAT THEIR CROPS WERE DAMAGED BY BENLATE FUNGICIDE THREATENED TO TAKE THE RARE STEP OF DIRECTING A JURY TO FIND DUPONT LIABLE FOR BENLATE DAMAGES IT IS WITHOUT QUESTION NOW THAT PLAINTIFFS HAVE CLEARLY DEMONSTRATED THAT THE DEFENDANT DUPONT WITHHELD DOCUMENTS RELATING TO THE CROSSCONTAMINATION OF BENLATE WITH CROPKILLING HERBICIDES ALSO MADE BY DUPONT AS WELL AS OTHER DOCUMENTS US DISTRICT JUDGE J ROBERT ELLIOTT CONCLUDED AT A PRETRIAL HEARING HERE FRIDAY THE DOCUMENTS WHICH DUPONT BELATEDLY DELIVERED TO THE GROWERS EARLIER THIS MONTH ARE COVERED BY A PROTECTIVE ORDER AND AREN'T AVAILABLE TO THE PUBLIC JUDGE ELLIOTT IS SCHEDULED ON JULY 6 TO BEGIN HEARING THE FIRST OF NEARLY 500 BENLATE CASES FILED IN STATE AND FEDERAL COURTS ACROSS THE COUNTRY AGAINST DUPONT IF THE JUDGE DIRECTS A VERDICT ON BENLATE LIABILITY IT WOULD BE A MAJOR LEGAL SETBACK FOR DUPONT AND COULD SET A PRECEDENT FOR DAMAGE VERDICTS IN HUNDREDS OF OTHER CASES JUST THE FOUR CASES GOING ON TRIAL JULY 6 ALLEGE TOTAL BENLATE LOSSES OF 79 MILLION IT WOULD BE UP TO THE JURY EVEN IF DIRECTED TO FIND DUPONT LIABLE TO DETERMINE THE DAMAGES TO BE AWARDED THE JURY WOULD ALSO HAVE TO DECIDE SEVERAL FRAUD COUNTS AGAINST DUPONT AND DETERMINE PUNITIVE DAMAGES IF FINDING THAT DUPONT COMMITTED FRAUD THIS CASE IS CRITICAL IN SETTING A VALUE FOR OTHER BENLATE CASES OVER THE LONG HAUL SAID C NEAL POPE WHO REPRESENTS THE FOUR GROWERS SUING DUPONT IN THIS CASE SINCE PULLING BENLATE FROM THE MARKET IN 1991 AFTER COMPLAINTS FROM GROWERS DUPONT HAS ALREADY PAID OUT NEARLY 500 MILLION TO GROWERS WHO USED BENLATE IN THE BIGGEST CASE OF PESTICIDE DAMAGE IN HISTORY FLORIDA OFFICIALS ESTIMATE THAT TOTAL BENLATE DAMAGES IN THAT STATE ALONE EXCEED 1 BILLION THE WILMINGTON DEL CHEMICAL COMPANY HALTED BENLATE PAYMENTS LAST NOVEMBER DUPONT SAID ITS RESEARCHERS HAD CONCLUDED THAT BENLATE WASN'T RESPONSIBLE AFTER ALL FOR THE DAMAGE TO ORNAMENTAL PLANTS AND OTHER CROPS MAINLY IN FLORIDA AND THE SOUTHEASTERN US A DUPONT SPOKESWOMAN SAID THE COMPANY CONTINUES TO DISPUTE THAT BENLATE WAS CONTAMINATED OR THAT IT IS RESPONSIBLE FOR CROP LOSSES SHE SAID THE COMPANY ALSO DISPUTES THE JUDGE'S CONCLUSION THAT IT HAS BEEN WITHHOLDING DOCUMENTS THE STATE OF FLORIDA IS ALSO TURNING UP THE HEAT ON DUPONT FLORIDA AGRICULTURAL COMMISSIONER BOB CRAWFORD LAST WEEK SUBPOENAED SEVERAL DUPONT OFFICIALS INCLUDING CHAIRMAN AND CHIEF EXECUTIVE OFFICER EDGAR S WOOLARD JR AND WILLIAM KIRK GENERAL MANAGER OF AGRICULTURAL PRODUCTS TO EXPLAIN DOCUMENTS THAT SURFACED IN THE COURSE OF PRETRIAL HEARINGS HERE THE DOCUMENTS INDICATE THAT SOME DUPONT RESEARCHERS FOUND BENLATE TO CAUSE PLANT DAMAGE DESPITE ITS PUBLIC CLAIMS TO THE CONTRARY THE DOCUMENTS PAINT A VERY BAD PICTURE OF HOW DUPONT IS LIVING UP TO ITS RESPONSIBILITY TO THE GROWER AND THE PUBLIC MR CRAWFORD SAID IN AN INTERVIEW STATE OFFICIALS ALSO SAY THAT SOME BUT NOT ALL OF THEIR OWN TESTS HAVE FOUND THAT BENLATE CAUSES CROP DAMAGE STATE AND FEDERAL REGULATORY OFFICIALS ARE ALSO STUDYING BENLATE'S POSSIBLE EFFECTS ON HUMAN HEALTH PATRICIA GETTER THE DUPONT SPOKESWOMAN SAID THE DOCUMENTS THAT SURFACED IN THE COURSE OF PRETRIAL HEARINGS AS WELL AS OTHER INTERNAL DUPONT DOCUMENTS DELIVERED TO PLAINTIFFS RAISED SEVERAL THEORIES ABOUT BENLATE CONTAMINATION THAT WERE SUBSEQUENTLY DISPROVED BY COMPANY RESEARCHERS JUDGE ELLIOTT SAID HE WAS THREATENING TO DIRECT THE VERDICT ON BENLATE LIABILITY BECAUSE DUPONT HADN'T RESPONDED ADEQUATELY TO A 1 MILLION SANCTION LEVIED BY THE JUDGE LAST MONTH TO PENALIZE DUPONT FOR NOT TURNING OVER INTERNAL DOCUMENTS REQUESTED BY GROWERS IT'S OBVIOUS THAT MONEY DOESN'T MAKE AN IMPRESSION ON THEM HE SAID 9306140160 930614 LEISURE & ARTS BUSINESS BOOKSHELF ADVERTISING'S KING LEAR BY JOE QUEENAN MANY CENTURIES AGO A POWERFUL OLD KING NAMED LEAR DECIDED TO GO INTO SEMIRETIREMENT NEGOTIATING A NIFTY PACKAGE THAT WOULD ALLOW HIM TO SPEND HALF THE TIME AT HIS DAUGHTER GONERIL'S CASTLE AND HALF THE TIME AT HIS DAUGHTER REGAN'S LEAR TRIED TO FOB OFF ALL THE DULL ADMINISTRATIVE CHORES OF ROYALTY ON HIS FAMILY WHILE KEEPING THE GLAMOROUS CEREMONIAL ROLES FOR HIMSELF A FEW MONTHS LATER WHILE STAGGERING AROUND HELPLESSLY AND SEMINAKED ON A DESERTED HEATH IN THE MIDDLE OF THE NIGHT HIS HIGHNESS FINALLY HAD TO ADMIT THAT THIS IMPERIAL REALIGNMENT IDEA HAD BEEN A BIG MISTAKE SOMETHING VERY SIMILAR SEEMS TO HAVE HAPPENED TO JAY CHIAT IN 1989 THOUGH HE AT LEAST RECOVERED HIS SENSES MR CHIAT FOUNDER OF THE FABULOUSLY SUCCESSFUL AND UNBELIEVABLY IMPORTANT AD AGENCY CHIAT/DAY HAD BEEN CHURNING OUT ENERGIZER BUNNY COMMERCIALS MOST OF HIS LIFE AND AT AGE 58 WAS READY FOR A CHANGE HE WANTED TO LEARN HOW TO COOK AND SPEAK ITALIAN HE WANTED TO LOSE 10 POUNDS GO SCUBA DIVING STUDY ART HISTORY HE WANTED TO FIGURE OUT WHAT THIS CRAZY LITTLE THING CALLED LIFE WAS ALL ABOUT HEY YOU ONLY GO AROUND ONCE SO YOU MIGHT AS WELL GRAB FOR ALL THE GUSTO UNFORTUNATELY MR CHIAT ALSO WANTED TO HANG ON TO HIS AGENCY AND MAKE SURE THAT IT CONTINUED TO GROW TO ACHIEVE THESE SEEMINGLY IRRECONCILABLE GOALS HE DECIDED TO TAKE A BRIEF SABBATICAL AND TO DIVIDE AUTHORITY BETWEEN AN ADMINISTRATOR NORTH AMERICAN CEO BOB WOLF AND A CREATIVE GURU LEE CLOW IN THE 18 MONTHS FOLLOWING THIS DECISION CHIAT/DAY WOULD UNDERGO IMMENSE TURMOIL LOSING BOTH ITS 40 MILLION REEBOK ACCOUNT AND ITS 35 MILLION ROYAL CARIBBEAN CRUISE LINES ACCOUNT WHILE ALSO FAILING IN ITS EFFORTS TO LAND THE 25 MILLION CENTURY 21 REAL ESTATE ACCOUNT THERE WOULD BE STAFF CUTS WALKOUTS SALARY FREEZES CEASELESS INTERNAL FEUDING BY OCTOBER 1990 WITH THE AGENCY'S FUTURE IN DOUBT MR CLOW WAS LITERALLY BEGGING MR CHIAT TO COME BACK AND RESUME THE LEADERSHIP ROLE HE HAD JETTISONED ONE YEAR EARLIER SO THAT HE COULD LEARN ITALIAN THE EVENTS OF THAT TROUBLING YEAR IN THE LIFE OF THE SHOP THAT BILLS ITSELF AS AMERICA'S MOST INNOVATIVE AD AGENCY ARE THE SUBJECT OF AN UNUSUAL HIGHLY STIMULATING BOOK ENTITLED INVENTING DESIRE INSIDE CHIAT/DAY SIMON & SCHUSTER 351 PAGES 25 FOR REASONS THAT ARE NOT CLEAR KAREN STABINER A CONTRIBUTING EDITOR OF THE LOS ANGELES TIMES WAS ALLOWED TO PITCH HER TENT INSIDE CHIAT/DAY'S VENICE CALIF HEADQUARTERS FOR A YEAR ATTENDING BOARD MEETINGS STRATEGY SESSIONS ADVERTISING SHOOTS AND EVEN CLIENT MEETINGS THE RESULT IS A FLYONTHE WALL'S VIEW OF A ONCEHOT COMPANY AT A PRECARIOUS MOMENT IN ITS HISTORY BUT THE RESULT IS ALSO A BOOK THAT COULD RUFFLE THE FEATHERS OF MANY CHIAT/DAY CLIENTS WHO ARE VIEWED BY SOME EMPLOYEES OF THE AGENCY AS BLAND OBSTRUCTIVE PREDICTABLE BUREAUCRATS CHIAT/DAY IS THE AGENCY THAT LIKES TO THINK OF ITSELF AS BOHEMIAN AND BY THE STANDARDS OF CORPORATE AMERICA IT PROBABLY IS THE AGENCY BUILT A REPUTATION FOR ITSELF BY PRODUCING FUNNY MEMORABLE ADS SUCH AS THE ENERGIZER BUNNY AND THE AMUSING PLAYONWORD SPOTS FOR THE NYNEX YELLOW PAGES BUT THE AGENCY IS ALSO FAMOUS FOR PRODUCING CONTROVERSIAL ATTENTIONGETTING ADS THAT SOMETIMES END UP GETTING DEEPSIXED BY CLIENTS A 1984 ORWELLIAN APPLE COMPUTER TV SPOT WHICH DEPICTED AN INSURGENT PERSONAL COMPUTER UPSTART CHALLENGING A TOTALITARIAN MONOLITH BIG BROTHER IBM ONLY RAN ONCE A 1990 REEBOK BUNGEEJUMPING AD WAS KILLED BY THE HIGHPROFILE SNEAKER COMPANY BECAUSE OF PUBLIC OUTCRY AND THE 1990 NISSAN 300ZX TURBO AD WAS BURIED AFTER PUBLICINTEREST GROUPS COMPLAINED THAT IT ENCOURAGED SPEEDING MS STABINER PROVIDES AN ABSORBING ACCOUNT OF THE AGENCY'S ATTEMPT TO ANSWER THE PERENNIAL HOW BIG CAN WE GET BEFORE WE GET BAD ESSENTIALLY CHIAT/DAY WAS TORN BETWEEN THE NEEDS OF SMALL CLIENTS HAPPY TO HAVE WACKY AWARDWINNING AD CAMPAIGNS IMPOSED ON THEM BY MR CHIAT'S CREATIVES AND THE NEED TO PLACATE STAIDER CLIENTS SUCH AS NISSAN MOTOR CORP THAT DESIRED THOUGHTPROVOKING BUT NOT OUTLANDISH ADS FOR THEIR 165 MILLION ACCOUNT ONESEVENTH OF THE SHOP'S ANNUAL BILLINGS THE AGENCY WAS ALSO SUNDERED BY CULTURAL FRICTION FROM GOGETTERS WHO FELT IT IMPERATIVE TO SPEND MORE QUALITY TIME WITH THEIR CLIENTS EVEN IF IT MEANT ENDURING LIFETHREATENING EXPERIENCES SUCH AS EATING BLOWFISH WITH JAPANESE EXECUTIVES AND THE CREATIVES WHO WANTED TO SPEND MORE QUALITY TIME WITH THEIR KIDS IN THE END MR CHIAT REJOINED THE COMPANY THROUGH THE BACK DOOR DRIFTING BACK IN AS A VAPOROUS GURULIKE FIGURE WITHOUT A CLEARLY DEFINED ROLE AND THE AGENCY'S MIDLIFE CRISIS ENDED MS STABINER HAS WRITTEN HER BOOK SO CRAFTILY THAT IT SHOULD SIMULTANEOUSLY PLEASE ITS NARCISSISTIC SUBJECTS WHILE TAKING THE MICKEY OUT OF THEM ALLUSIONS TO THE QUEST FOR THE GRAIL AND DEEPLY SERIOUS DISCUSSIONS OF JAY CHIAT'S NAILING DOWN THE COVETED WESTERN STATES ADVERTISING ASSOCIATION OF AMERICA LEADER OF THE YEAR AWARD SUGGEST THAT SHE MAY BE HAVING A WEE BIT OF FUN WITH THIS LATTERDAY LEAR WHO ONE DAY DECIDED TO WANDER OFF AND FIND HIMSELF IT'S LEFT UNCLEAR IF HE EVER LEARNED ITALIAN 9306140159 930614 ANALYSTS EXPECT RECORD CASH RETURN FOR MUNICIPAL BOND HOLDERS IN JULY BY LYNN K ADLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HOLDERS OF MUNICIPAL NOTES AND BONDS ARE ABOUT TO RECEIVE A TIDAL WAVE OF CASH SEMIANNUAL COUPON PAYMENTS BOND CALLS AND MATURING BONDS WILL SHOWER MUNI INVESTORS WITH AN ESTIMATED 12 BILLION TO 17 BILLION ON JULY 1 A RECORD SOME ANALYSTS SAY JANUARY'S PAYMENTS ARE BELIEVED TO HAVE TOPPED 10 BILLION TO PREPARE BROKERAGE HOUSES ARE STOCKPILING SECURITIES FOR AN EXPECTED MUNIBUYING SPREE AND PORTFOLIO MANAGERS ARE SCRAMBLING TO ALERT INVESTORS THAT A REINVESTMENT DECISION LOOMS MERRILL LYNCH & CO RAN AN AD IN THE WALL STREET JOURNAL SAYING A RECORD NUMBER OF MUNICIPAL BONDS WILL BE CALLED JULY 1 THIS IS THE TIME TO DISCUSS MUNICIPAL STRATEGIES WITH YOUR MERRILL LYNCH FINANCIAL CONSULTANT THE AD IS PARTIALLY TO SEEK NEW INVESTORS AND PARTIALLY TO MOTIVATE INVESTORS TO ANTICIPATE RATHER THAN REACT TO THE JULY PHENOMENON SAYS DAVID MADIGAN VICE PRESIDENT AND MUNICIPAL STRATEGIST AT MERRILL MOST MUTUAL FUND MANAGERS ARE WELL AWARE OF THIS PHENOMENON AND ARE ACTING ACCORDINGLY ADDS WILLIAM REYNOLDS DIRECTOR OF THE MUNICIPAL BOND DIVISION AT T ROWE PRICE ASSOCIATES THE BALTIMORE MUTUAL FUND COMPANY BUT INDIVIDUALS MAY NOT KNOW RIGHT AWAY OR ACT IMMEDIATELY ESPECIALLY IF THEY HOLD OLDSTYLE BEARER BONDS DESPITE TODAY'S LOW INTEREST RATES MUNICIPAL PORTFOLIO MANAGERS AND BROKERS EXPECT THE BULK OF THE MONEY TO FLOW BACK INTO THE MUNI MARKET OF COURSE AS MR REYNOLDS POINTS OUT SOME OF IT MIGHT BE REDIRECTED INTO THE STOCK MARKET BUT MUNI BROKERS CONTEND THAT THE OUTLOOK IS BRIGHT FOR MUNIS THEY ARGUE THAT IF INTEREST RATES RISE AS MANY ECONOMISTS PREDICT THERE WILL BE FEWER REFINANCINGS BY STATES AND TOWNS OF OLDER HIGHERYIELDING EXISTING SECURITIES A REDUCED LEVEL OF REFINANCINGS WOULD CURB SUPPLIES MEANWHILE BROKERS EXPECT GREATER INVESTOR DEMAND FOR MUNIS AS PRESIDENT CLINTON'S TAXINCREASE PROPOSAL GROWS NEARER TO REALITY THE SUPPLYDEMAND STRUCTURE OF THE MUNI MARKET IS MOVING IN THE DIRECTION OF MORE DEMAND AND LESS SUPPLY AND INTERMEDIATETERM MUNIS SHOULD BE THE BIGGEST BENEFICIARIES SAYS GEORGE FRIEDLANDER MANAGING DIRECTOR PORTFOLIO STRATEGY/FIXED INCOME FOR HIGH NET WORTH INVESTORS AT SMITH BARNEY HARRIS UPHAM & CO CONSIDERING THE TAX AND SUPPLY SITUATIONS MUNIS ARE STILL VIEWED AS MODERATELY UNDERVALUED RELATIVE TO TREASURYS ACCORDING TO MANY ANALYSTS THE MUNICIPAL BOND MARKET IS TRADING AS THOUGH THE 31 TAX BRACKET IS GOING TO LAST FOREVER SAYS JOSEPH BAXTER VICE PRESIDENT/FIXED INCOME SERVICES AT CORESTATES INVESTMENT ADVISERS PHILADELPHIA DON'T COUNT ON IT MR BAXTER VIEWS JUNE AS A LAST SORT OF OPPORTUNITY HERE TO BUY BEFORE THE SUPPLYDEMAND EQUATION TURNS AGAINST THE MARKET AND MUNIS BECOME MORE EXPENSIVE MERRILL'S MR MADIGAN AGREES SAYING WE EXPECT THAT BETWEEN NOW AND THE END OF JULY MUNIS WILL GET A LOT RICHER COMPARED TO TAXABLE INVESTMENTS JULY IS TRADITIONALLY A SLOW MONTH FOR NEW ISSUANCE BECAUSE MANY STATE AND LOCAL GOVERNMENTS ARE JUST STARTING NEW FISCAL YEARS HE SAYS TENYEAR TRIPLEARATED MUNI BONDS NOW YIELD AROUND 5 WHILE 10YEAR TREASURY NOTES YIELD 615 AN INVESTOR IN THE 31 FEDERAL TAX BRACKET WOULD NEED A 725 TAXABLE YIELD TO EQUAL THE TRIPLEA MUNI BONDS BUT THAT YIELD WOULD NEED TO RISE TO 781 FOR THOSE IN A 36 TAX BRACKET AND 828 FOR THOSE IN A 396 BRACKET MR BAXTER SAYS AS INVESTORS PREPARE TO PUT FUNDS BACK INTO MUNIS MANY ADVISERS SUGGEST THAT INTERMEDIATETERM DEBT SHOULD BE FAVORED MR BAXTER SAYS FOR 10YEAR MUNIS YOU'RE PICKING UP 88 OF THE YIELD AND JUST 58 OF THE RISK OF A 30YEAR MUNI BOND AND 10YEAR TRIPLEA MUNIS NOW YIELD ABOUT 82 OF 10YEAR TREASURY NOTE YIELDS SAYS SMITH BARNEY'S MR FRIEDLANDER 9306140158 930614 INTERNATIONAL JAPAN'S BUSINESSES REPORT CONFIDENCE STAYING IN SLUMP BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO JAPAN'S BUSINESS CONFIDENCE REMAINS AT ITS LOWEST LEVEL IN ALMOST TWO DECADES THE BANK OF JAPAN SAID FRIDAY THE QUARTERLY SURVEY OF BUSINESS CONDITIONS OR TANKAN DEPICTED AN ECONOMY STILL STRUGGLING TO PULL OUT OF HARD TIMES WHILE THE CENTRAL BANK SAID THAT BUSINESS PESSIMISM IN KEY SECTORS HADN'T WORSENED FROM THE PREVIOUS REPORT THE FIRST TIME IN NEARLY FOUR YEARS IT DIDN'T SLIDE OFFICIALS DECLINED TO CONCLUDE THAT THE ECONOMY WAS AT A TURNING POINT THE GOOD NEWS IN THE REPORT INCLUDED SIGNS THAT MAJOR JAPANESE MANUFACTURERS SEEM TO BE RESOLVING THEIR EXCESS INVENTORY PROBLEM WHICH HAS BEEN A DRAG ON PRODUCTION OF NEW MERCHANDISE THE BAD NEWS WAS THAT JAPAN'S PROCESSING AND NONMANUFACTURING SECTORS SUCH BUSINESSES AS CONSTRUCTION FOOD RETAILING AND FINANCIAL SERVICES THINK BUSINESS IS GETTING WORSE THAT COULD PUT A DAMPER ON ANY POSSIBLE MANUFACTURINGLED ECONOMIC REBOUND THE TANKAN FOLLOWED OTHER MIXED ECONOMIC NEWS FROM JAPAN LAST WEEK ON THURSDAY THE HEAD OF JAPAN'S ECONOMIC PLANNING AGENCY EXPRESSED CONFIDENCE THAT THE NATION'S ECONOMY HAS ALMOST BOTTOMED OUT AND CAME UNDER FIRE FROM PRIVATESECTOR EXECUTIVES FOR EVEN THIS TENTATIVE OPTIMISM MEANWHILE JAPANESE SECURITIES FIRMS PROJECTED THAT PROFITS WOULD CONTINUE TO DECLINE FOR CORPORATE JAPAN IN THE FISCAL YEAR ENDING MARCH 31 1994 THE PROJECTIONS INDICATED PROFITS WOULD REBOUND IN 1995 THE TANKAN RECORDS SENTIMENT USING A SOCALLED DIFFUSION INDEX A SUBTRACTION OF THE PERCENTAGE OF COMPANIES THAT FORESEE IMPROVING CONDITIONS FROM THOSE EXPECTING DETERIORATION IN FRIDAY'S SURVEY THE INDEX FOR MAJOR MANUFACTURERS STOOD AT MINUS 49 THE SAME LEVEL AS IN A REPORT ISSUED IN MARCH THESE ARE THE WORST NUMBERS SINCE 1976 WHEN JAPAN WAS BATTERED BY THE OIL EMBARGO THE REPORT IS VIEWED AS A SIGNIFICANT GUIDE FOR JAPANESE MONETARY POLICY MAKERS WHILE ECONOMISTS WERE DIVIDED OVER THE MEANING OF FRIDAY'S SURVEY MOST SAID THAT AT MINIMUM IT INCREASED THE CHANCES THAT THE CENTRAL BANK WILL EASE INTEREST RATES IN THE NEAR FUTURE THE DISCOUNT RATE OR THE BORROWING RATE THAT THE CENTRAL BANK CHARGES PRIVATE LENDERS CURRENTLY STANDS AT 25 BASED ON THE REPORT THERE'S NO BARRIER TO LOWERING RATES IF THE YEN CONTINUES TO STRENGTHEN SAID ROBERT FELDMAN ECONOMIST AT SALOMON BROTHERS ASIA LTD THE STRONG YEN WHICH TENDS TO HURT THE SALES OF JAPANESE EXPORTERS COULD BE WEAKENED WITH LOWER INTEREST RATES BUT MR FELDMAN SAW NO NEED FOR THE INTERESTRATE CUT BASED ON FUNDAMENTAL BUSINESS CONDITIONS DEPICTED IN THE REPORT FRIDAY'S TANKAN IS MORE POSITIVE THAN THE HEADLINE FIGURES HE SAID CITING THE IMPROVED OUTLOOK OF SMALL AND MEDIUMSIZED JAPANESE ENTERPRISES HE EXPECTS THIS TO LEAD TO A TRICKLEUP ECONOMIC RECOVERY OTHERS WEREN'T SO POSITIVE ON THE ECONOMY BUT ALSO SAW MORE CHANCE FOR LOWER INTEREST RATES BECAUSE OF THE TANKAN MANUFACTURERS ARE ANTICIPATING IMPROVEMENT BUT THEY'RE ALWAYS WRONG SAID TETSUO TSUKIMURA CHIEF ECONOMIST AT SMITH BARNEY HARRIS UPHAM INC THEY'RE GOING TO BE HURT BY THE STRONG YEN HE ALSO THOUGHT THE WORSENING OUTLOOK AMONG PROCESSING INDUSTRIES AND MAJOR NONMANUFACTURERS THE DIFFUSION INDEX FOR NONMANUFACTURERS FELL TO MINUS 38 FROM MINUS 33 IN THE PREVIOUS REPORTBODED ILL FOR THE ECONOMY THE PROBLEM IS FURTHER DETERIORATION HE SAID HE PREDICTED THE CENTRAL BANK WILL CUT THE DISCOUNT RATE IN JULY 9306140157 930614 JAPANESE ANALYSTS SEE A SLOWDOWN IN TREND OF FALLING PRETAX PROFIT SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE CORPORATIONS EXPECT THE FALL IN PRETAX PROFIT TO BOTTOM OUT AND PERHAPS BEGIN TO REBOUND IN THE CURRENT TERM THE RESEARCH CENTERS FOR NIKKO SECURITIES CO AND DAIWA SECURITIES CO SAID FRIDAY NIKKO RESEARCH CENTER PROJECTED PRETAX PROFIT THIS FISCAL YEAR WILL EDGE UP 28 THE FIRST RISE IN FOUR YEARS SUPPORTED BY A SECONDHALF TURNAROUND AS FIXED COSTS EASE RESTRUCTURING EFFORTS TAKE EFFECT AND PERSONAL CONSUMPTION BEGINS TO RECOVER FOR THE COMING FISCAL YEAR PRETAX PROFIT WILL JUMP 21 AS MANUFACTURERS SEE A REBOUND NIKKO PREDICTED DAIWA INSTITUTE OF RESEARCH EXPECTS PRETAX PROFIT TO FALL 10 THIS FISCAL YEAR DROPPING SHARPLY IN THE FIRST HALF BUT REGAINING SOME GROUND IN THE SECOND THE TYPICAL CORPORATE FISCAL YEAR IN JAPAN ENDS MARCH 31 THE FORECASTS FOLLOW THOSE ISSUED BY SIX OTHER MAJOR SECURITIES HOUSES EARLIER LAST WEEK INCLUDING THE RESEARCH ARM OF NOMURA SECURITIES CO WHICH PREDICTED A 7 DROP THIS FISCAL YEAR WOULD BE FOLLOWED BY A 123 RISE NEXT TERM LAST FISCAL YEAR PRETAX PROFIT FELL ABOUT 25 RESEARCHERS FROM BOTH DAIWA AND NIKKO EXPRESSED CONCERN ABOUT THE EFFECT OF THE YEN'S STRENGTH ON THE EARNINGS OF EXPORTORIENTED COMPANIES SUCH AS CAR MAKERS AND STEEL MANUFACTURERS BUT NIKKO SAID IF THE YEN AVERAGES 107 TO THE DOLLAR FOR THE FISCAL YEAR ENDING MARCH 31 1994 THE EFFECT ON ALL INDUSTRIES COMBINED IS LIKELY TO BE EVEN ALONG WITH RESTRUCTURING EFFORTS TO COPE WITH THE YEN'S RISE THE RESEARCHERS CITED THE BENEFIT OF LOWER COSTS FOR IMPORTED RAW MATERIALS DAIWA EXPECTS THE YEN TO AVERAGE 110 TO THE DOLLAR THIS FISCAL YEAR THE EXCHANGE RATE RECENTLY HAS BEEN IN THE RANGE OF 106 YEN TO THE DOLLAR NIKKO EXPECTS THE YEN TO AVERAGE 114 TO THE DOLLAR THIS FISCAL YEAR AND 112 TO THE DOLLAR THE YEAR AFTER 9306140156 930614 MANAGEMENT TRAINERS HELP EXPATRIATE EMPLOYEES BUILD BRIDGES TO DIFFERENT CULTURES BY BOB HAGERTY STAFF REPORTER OF THE WALL STREET JOURNAL LA HULPE BELGIUM AT A TRAINING CENTER HERE BOB WAISFISZ IS INTRODUCING YOUNG MANAGERS FROM INTERNATIONAL BUSINESS MACHINES CORP TO THE MYSTERIES OF FOREIGN CULTURES TO STIR DISCUSSION HE ASKS THEM TO EXPLAIN THE BRITISH IDEAL OF KEEPING A STIFF UPPER LIP WHAT IS 'STIFF UPPER LIP' ASKS DAAN KOOMAN AN IBM MANAGER FROM THE NETHERLANDS WALTER SUM A GERMAN COLLEAGUE SUGGESTS THAT IT MEANS I CAN ABSORB PAIN WITHOUT SHOWING EMOTION MR WAISFISZ THEN EXPOUNDS ON SCIENTIFIC DATA SHOWING THAT BRITONS TEND TO PUT A HIGH VALUE ON MASCULINE TRAITS DAVE WILKIN A CANADIAN PUTS UP HIS HAND AND RAISES A TOUGHER QUESTION WHY DO FRENCH WOMEN ALWAYS DRESS IN SUCH A SEXY WAY MR WAISFISZ A DUTCHMAN FIZZING WITH ENERGY AND WISECRACKS DANCES AROUND THE QUESTION BY NOTING THAT THE FRENCH AND ITALIANS GENERALLY CONSIDER IT IMPORTANT TO PROJECT A CERTAIN IMAGE OF THEMSELVES BY DRESSING SMARTLY SOME OF THE CHATTER MAY SOUND TRIVIAL BUT MR WAISFISZ WHO HEADS A TRAINING FIRM BASED IN THE HAGUE AND A GROWING BAND OF OTHER TRAINERS ARE PERSUADING BIG COMPANIES THAT THEIR MANAGERS OUGHT TO ATTEND SUCH SEMINARS IN MULTICULTURAL MANAGEMENT THESE SEMINARS WHICH BEGAN TO POP UP IN EUROPE IN THE 1980S GO BEYOND THE TRADITIONAL SHORT COURSE ON HOW AN EXPATRIATE EXECUTIVE CAN COPE WITH THE FOLKWAYS OF A PARTICULAR COUNTRY THE GOAL IS TO HELP EXECUTIVES COME TO TERMS WITH A WIDE RANGE OF PEOPLE WITH DIFFERENT VALUES AND WAYS OF SOLVING PROBLEMS THE TRAINERS TRY TO CHANGE ATTITUDES AND CHALLENGE BIASES RATHER THAN MERELY PARROTING A LIST OF ADMONITIONS AGAINST SAY PATTING A THAI CHILD ON THE HEAD OR ARRIVING LATE FOR A MEETING IN FRANKFURT MULTICULTURAL MANAGEMENT IS A QUESTION OF ATTITUDE AN OPENNESS TO HUMAN VARIETY NOT A QUESTION OF KNOWLEDGE SAYS FONS TROMPENAARS ANOTHER DUTCHMAN WHO IS ONE OF MR WAISFISZ'S RIVALS ON THE SEMINAR CIRCUIT THESE CULTURE GURUS HAVE A NEW SALES PITCH FOR THEIR COURSES AND CONSULTING WORK MANY COMPANIES THAT RUSHED INTO CROSSBORDER MERGERS AND ACQUISITIONS IN THE LATE '80S NOW REALIZE THAT SUCH PROJECTS ARE MORE COMPLICATED THAN THEY APPEARED THE MISSING ELEMENT IS THE HUMAN FACTOR SAYS RUDI PLETTINX A TRAINING OFFICIAL AT THE MANAGEMENT CENTRE EUROPE IN BRUSSELS NOT ALL COMPANIES FEEL COMPELLED TO CALL IN OUTSIDERS TO EXPLAIN CULTURAL MYSTERIES SOME USE INHOUSE EXPERTS OR FIGURE THAT THEIR EXECUTIVES LEARN BY DOING TONY PREEDY VICE PRESIDENT PERSONNEL AT LONDONBASED POLYGRAM NV SAYS THAT MANY OF THE MUSIC COMPANY'S EXECUTIVES TRAVEL FREQUENTLY AND GET USED TO WORKING WITH COLLEAGUES ALL OVER THE WORLD IF MULTICULTURAL MANAGEMENT IS THE WAVE OF THE FUTURE POLYGRAM FIGURES IT HAS AN ADVANTAGE IT ALREADY HAS 15 DIFFERENT NATIONALITIES AMONG ITS 33 TOP MANAGERS NO ONE NATIONALITY DOMINATES SAYS MR PREEDY I THINK IT'S THE WAY MULTINATIONALS WILL HAVE TO GO YOU CAN'T BELIEVE THAT HEAD OFFICE KNOWS BEST OTHERS ARE EAGER TO SMOOTH OVER CULTURAL DIFFERENCES RATHER THAN CULTIVATE THEM WE TRY TO BUILD A COMMON CORPORATE CULTURE SAYS PETER M DESSAU THE HEAD OF HUMAN RESOURCES AT THE EUROPEAN DIVISION OF COLGATEPALMOLIVE CO WE WANT THEM ALL TO BE COLGATERS THEN THERE ARE THE TRUE BELIEVERS IN MULTICULTURAL TRAINING AMONG THEM IS KNUD CHRISTENSEN A DANISH PERSONNELMANAGER AT BP OIL EUROPE A BRUSSELSBASED UNIT OF BRITISH PETROLEUM CO NO CULTURE IS BETTER OR WORSE THAN ANOTHER MR CHRISTENSEN SAYS THEY'RE JUST DIFFERENT WE HAVE TO UNDERSTAND THAT TOWARD THAT END THE COMPANY HAS PUT ABOUT 250 OF ITS MANAGERS THROUGH 2 1/2DAY COURSES LED BY MR WAISFISZ OVER THE PAST THREE YEARS THE COST PER MANAGER IS AROUND 1500 MR CHRISTENSEN SAYS AMONG OTHER BENEFITS HE SAYS THE COURSES HAVE HELPED BP OIL MANAGERS ADAPT POLICIES TO FIT VARYING NATIONAL NEEDS FOR EXAMPLE THE COMPANY PROMOTES UPWARD FEEDBACK UNDER WHICH MANAGERS COMMENT ON THEIR BOSSES' PERFORMANCE THAT WORKS WELL IN SCANDINAVIA BRITAIN AND THE NETHERLANDS WHERE MANAGERS TEND NOT TO BE OVERLY INTIMIDATED BY THEIR SUPERIORS MR CHRISTENSEN SAYS BUT IT IS MORE DIFFICULT IN FRANCE TURKEY AND GREECE WHERE TRADITION CALLS FOR SHOWING MORE DEFERENCE TOWARD AUTHORITIES MANAGERS IN SUCH COUNTRIES MIGHT BE LESS DIRECT IN PROVIDING THEIR FEEDBACK MR CHRISTENSEN SAYS MOTOROLA INC HAS GONE SO FAR AS TO OPEN A SPECIAL CENTER FOR CULTURAL TRAINING AT ITS HEADQUARTERS IN SCHAUMBURG ILLINOIS THE ELECTRONICS COMPANY IS PUTTING HUNDREDS OF ITS MANAGERS THROUGH SHORT COURSES THERE USING PROGRAMS PARTLY DEVELOPED BY MR TROMPENAARS IT IS IMPERATIVE THAT WE UNDERSTAND ALL NATIONAL CULTURES AND RESPECT ALL CULTURES AND USE IT AS A COMPETITIVE ADVANTAGE SAYS RS MOORTHY A MALAYSIAN WHO RUNS THE TRAINING CENTER MR MOORTHY'S GOAL TO MAKE MOTOROLA MANAGERS TRANSCULTURALLY COMPETENT ON THE OTHER SIDE OF THE ATLANTIC PHILIPPE ALLOING IS NEARLY AS ENTHUSIASTIC A FRENCHMAN WHO HAS SPENT MOST OF HIS CAREER OUTSIDE FRANCE MR ALLOING BECAME CONVINCED OF THE NEED FOR CULTURAL TRAINING A FEW YEARS AGO WHEN HE WAS HEAD OF HUMAN RESOURCES AT BP NUTRITION ANOTHER BRITISH PETROLEUM UNIT AND FOUND HIMSELF DEALING WITH A MELTING POT IN WHICH THINGS DIDN'T MELT VERY WELL MR ALLOING STILL USES CULTURAL TRAINING NOW THAT HE IS HUMAN RESOURCES CHIEF AT CARNAUDMETALBOX SA A HUGE PARISBASED MAKER OF PACKAGING FORMED BY THE 1989 MERGER OF RIVALS FROM FRANCE AND BRITAIN AT THE MOMENT HE IS USING MR TROMPENAARS'S SERVICES TO TRY TO RESOLVE CULTURAL CLASHES BETWEEN BRITISH AND GERMAN MANAGERS WHOSE BUSINESS UNITS ARE MERGING IN GERMANY YOU ARE A BEGINNER UNTIL YOU ARE 38 MR ALLOING SAYS IN ENGLAND AT 38 YOU ARE A HASBEEN AND LOOKING AT EARLY RETIREMENT THIS KIND OF CONTRAST IS A CULTURE GURU'S BREAD AND BUTTER DURING HIS SEMINARS MR TROMPENAARS REPORTS A CORRELATION BETWEEN THE NUMBER OF LAWYERS IN A SOCIETY AND SPENDING ON PET FOOD THIS HAS NOTHING TO DO WITH WHAT LAWYERS EAT HE QUIPS RATHER HE EXPLAINS PEOPLE IN THE US AND OTHER LARGELY PROTESTANT CULTURES OFTEN ARE SO SUSPICIOUS OF HUMANITY THAT THEY TURN TO LAWYERS AND DOGS MR WAISFISZ EXPLAINS ALL KINDS OF CULTURAL DIFFERENCES BY REFERENCE TO THE WRITINGS OF GEERT HOFSTEDE A DUTCH ACADEMIC WHO DEVISED A WAY TO RANK NATIONS ACCORDING TO SUCH CRITERIA AS THEIR DEGREE OF INDIVIDUALISM RESPECT FOR AUTHORITY AND AVERSION TO UNCERTAINTY WITHIN AN HOUR OR TWO MR WAISFISZ HAS HIS STUDENTS BATTING AROUND SUCH TERMS AS POWER DISTANCE AND UNCERTAINTY AVOIDANCE LEST THE JARGON AND DATA SEND STUDENTS TO SLEEP MR WAISFISZ KEEPS JABBING THEM WITH HUMOR A SAMPLE IN GERMANY EVERYTHING IS FORBIDDEN UNLESS IT'S ALLOWED IN BRITAIN EVERYTHING IS ALLOWED UNLESS IT'S FORBIDDEN AND IN FRANCE EVERYTHING IS ALLOWED EVEN IF IT'S FORBIDDEN 9306140155 930614 INTERNATIONAL WASHINGTON INSIGHT CLINTON'S GETTOUGH STANCE WITH JAPAN SIGNALS RISE OF REVISIONIST THOUGHT BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S GETTOUGH POLICY TOWARD JAPAN MARKS THE ASCENDANCY OF A CONTROVERSIAL SCHOOL OF ECONOMIC THOUGHT CONCERNING TOKYO REVISIONISM UNLIKE CLASSICAL THEORISTS WHO BELIEVE JAPAN WILL EVOLVE TO BECOME MORE LIKE WESTERN ECONOMIES REVISIONISTS VIEW JAPANESE SOCIETY AS FUNDAMENTALLY DIFFERENT FROM THE US AND LIKELY TO REMAIN SO THEY SAY JAPAN PRACTICES A KIND OF STATESPONSORED CAPITALISM THAT CHEWS UP FREEMARKETEERS DON'T TRY TO RECONSTRUCT JAPAN IN AMERICA'S IMAGE REVISIONISTS WARN BUT CONSTRUCT POLICIES THAT TAKE ACCOUNT OF JAPAN'S DIFFERENCES I BECAME CONVINCED THAT JAPAN REALLY WAS QUITE DIFFERENT SAYS WHITE HOUSE CHIEF ECONOMIST AND CHIEF REVISIONIST LAURA TYSON IT HAD A CAPITALISM WHICH WASN'T LIKE THE CAPITALISM I UNDERSTOOD SHE AND OTHERS IN THE ADMINISTRATION HAVE CONCLUDED THAT THE US CAN'T RELY SOLELY ON CONVENTIONAL ECONOMIC FORCES AND LIBERALIZED TRADING RULES TO RESTORE BALANCE TO USJAPAN TRADE THEY SAY WASHINGTON ALSO MUST SET TRADE TARGETS AND QUOTAS FOR JAPAN AND LET TOKYO FIGURE OUT HOW TO MEET THEM THAT'S THE HEART OF THE NEW CLINTON JAPAN POLICY WHICH WAS PRESENTED TO JAPANESE NEGOTIATORS FRIDAY MS TYSON SAYS SHE WAS DEEPLY AFFECTED BY THE BESTKNOWN REVISIONIST WORK CLYDE PRESTOWITZ'S TRADING PLACES THE BOOK ARGUES THAT US NEGOTIATORS BLINDED BY CLASSICAL ECONOMIC THEORY DISCOUNTED JAPAN'S SKILLFUL PROMOTION OF HIGHTECH INDUSTRIES AS A RESULT JAPANESE INDUSTRIES FLOURISHED WHILE US INDUSTRIES DECLINED MR PRESTOWITZ A FORMER US NEGOTIATOR WITH JAPAN BASED HIS ACCOUNT ON HIS TENURE AT THE REAGAN COMMERCE DEPARTMENT HERE WAS A GUY ON THE INSIDE SAYS MS TYSON WHO STUDIED US TRADE POLICY AS AN ACADEMIC EVERYTHING I'VE SEEN HAS BEEN CONSISTENT WITH HIS ACCOUNT ADDS US TRADE REPRESENTATIVE MICKEY KANTOR I TALK TO MR PRESTOWITZ ALL THE TIME TREASURY UNDERSECRETARY LAWRENCE SUMMERS USUALLY CONSIDERED A FREETRADER SAYS HE WAS INFLUENCED BY REVISIONISTS TOO IN ADDITION MR SUMMERS' WORK AS CHIEF ECONOMIST AT THE WORLD BANK LED HIM TO CONCLUDE THAT JAPANESE TRADE BARRIERS WERE STIFFER AND MORE INTRACTABLE THAN THOSE IN THE US AND EUROPE WE CAN PROBABLY ALL NOW AGREE THAT JAPANESE SNOW ISN'T ALL THAT DIFFERENT FROM SNOW IN THE REST OF THE WORLD MR SUMMERS LECTURED THE JAPAN SOCIETY LAST MONTH BUT THE MARKET SHARE OF MANUFACTURED IMPORTS IN JAPAN IS STILL ONLY HALF THAT IN THE US OR EUROPE MR SUMMERS' ALLUSION TO SNOW RECALLS ONE OF JAPAN'S BESTPUBLICIZED ATTEMPTS AT BLOCKING IMPORTS IT PROMULGATED SKIEQUIPMENT STANDARDS FOR UNIQUE JAPANESE SNOW BOWMAN CUTTER DEPUTY DIRECTOR OF THE WHITE HOUSE'S NATIONAL ECONOMIC COUNCIL PRAISES A REVISIONIST EXAMINATION OF JAPAN BY DUTCH JOURNALIST KAREL VAN WOLFEREN IN THE ENIGMA OF JAPANESE POWER MR VAN WOLFEREN WHO HAS LIVED IN JAPAN FOR 25 YEARS URGES READERS NOT TO BE MISLED BY FICTIONS THAT JAPAN HAS A FREE MARKET OR A CENTRAL GOVERNMENT CAPABLE OF DELIVERING ON POLITICAL PROMISES TO THE WEST THE RISE OF REVISIONISM WORRIES SOME VETERAN JAPAN WATCHERS WHO CONSIDER REVISIONIST ARGUMENTS CRUDE AND UNCONVINCING JAGDISH BHAGWATI A FREETRADE THEORIST AT COLUMBIA UNIVERSITY SAYS REVISIONISTS DON'T APPRECIATE HOW QUICKLY JAPAN IS LIBERALIZING ITS ECONOMY ADDS WILLIAM GLEYSTEEN PRESIDENT OF THE JAPAN SOCIETY REVISIONISM CAN POINT AMERICANS IN A HOSTILE DIRECTION AND BRING UP A HOSTILE JAPANESE RESPONSE THE JAPAN SOCIETY FUNDED BY US AND JAPANESE COMPANIES SPONSORS EDUCATIONAL PROGRAMS ON JAPAN MR PRESTOWITZ WHO RUNS A THINK TANK CALLED THE ECONOMIC STRATEGY INSTITUTE WAS TAGGED DURING THE LAST ADMINISTRATION AS A JAPAN BASHER A TERM HE FINDS OFFENSIVE AND MISTAKEN HE HAS LIVED IN JAPAN SPEAKS THE LANGUAGE AND ADOPTED A JAPANESE SON IF ANYTHING THE 51YEAROLD TRADE ADVISER WANTS THE US TO EMULATE JAPAN'S INDUSTRIAL POLICY OF AIDING HIGHTECH INDUSTRIES FOR INSTANCE HE ADVISES CLINTON OFFICIALS TO PRESS JAPANESE AUTO MAKERS THAT BUILD CARS IN THE US TO EXPORT THEM TO JAPAN THAT WOULD HELP REDUCE THE TRADE DEFICIT HE ARGUES AND INCREASE BUSINESS FOR US AUTOPARTS SUPPLIERS SOME REVISIONISTS WOULD TAKE A MUCH HARDER LINE TOWARD JAPAN CHALMERS JOHNSON A JAPAN SPECIALIST AT THE UNIVERSITY OF CALIFORNIA ARGUES THAT THE US NEEDS TO ADOPT A POLICY OF ECONOMIC CONTAINMENT TOWARD JAPAN AS RIGOROUS AS THE ONE THE US PURSUED FOR 45 YEARS AGAINST THE SOVIET UNION BUT MR PRESTOWITZ WARNS THAT ACTING TOO TOUGH CAN BACKFIRE IF THE JAPANESE PERCEIVE THE CLINTON POLICY AS TRYING TO FORCE THINGS DOWN THEIR THROAT THAT'S DIFFICULT HE SAYS THE STRATEGY SHOULD BE WE HAVE A PROBLEM YOU HAVE A PROBLEM LET'S WORK SOMETHING OUT 9306140154 930614 AIM OF OPEC PACT IS TO APPEASE IRAN AN OVERPRODUCER RATHER THAN KUWAIT BY JAMES TANNER AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA AT LAST WEEK'S OPEC MEETING ALI AHMAD ALBAGHLI THE KUWAITI OIL MINISTER WAS MADE AN OFFER HE COULD EASILY REFUSE HE DID THEN HE AND HIS TEAM WAITED IN THEIR HOTEL SUITES FOR THE INEVITABLE TORTUOUS OPEC NEGOTIATIONS TO BEGIN THEY NEVER DID I WAS ASTONISHED CONCEDES MR ALBAGHLI AS HE THOUGHTFULLY FLICKS HIS MISBA BEADS DURING AN INTERVIEW A DAY AFTER THE EVENT NOW KUWAIT IS OUT OF THE AGREEMENT WHICH LEAVES OUTPUT QUOTAS UNCHANGED FOR THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES IN THE THIRD QUARTER AFTER REFUSING TO SIGN THE PACT THAT WOULD HAVE GIVEN KUWAIT A 10 INCREASE IN ITS QUOTA OF 16 MILLION BARRELS A DAY WHILE FREEZING 11 OTHERS IN OPEC AT CURRENT LEVELS MR ALBAGHLI IS FREE TO PRODUCE AS MUCH AS THE 2160000 BARRELS A DAY HE HAD DEMANDED AS HIS NEW ALLOTMENT BUT THE INCONCLUSIVE END TO THE THREEDAY OPEC CONFERENCE NOT ONLY LEFT UNCHECKED KUWAIT'S OUTPUT WHICH HAS BEEN REBOUNDING SINCE SADDAM HUSSEIN'S IRAQI FORCES WERE DRIVEN FROM THE EMIRATE IT ALSO OFFERED LITTLE NEW RESTRAINT ON OVERPRODUCTION BY IRAN AND NIGERIA AS A RESULT PETROLEUM PRICES FELL AFTER THE MEETING ENDED HERE THURSDAY NIGHT JULY CRUDE DROPPED A TOTAL OF 66 CENTS ON THE NEW YORK MERCANTILE EXCHANGE ENDING THE WEEK AT 1898 A BARREL BUT WITH OIL DEMAND LIKELY TO RISE OIL EXPERTS EXPECT PRICES TO RECOVER TO LEVELS PREVAILING BEFORE THE OPEC MEETING WITHIN A COUPLE WEEKS THEY WILL GO BACK UP UNLESS QUOTA CHEATING CONTINUES SAID NORDINE AITLAOUSSINE A GENEVA CONSULTANT AND FORMER OIL MINISTER OF ALGERIA WEAK OIL MARKETS MAY FIRM UP IF THE STRATEGY LEADING TO THE SURPRISING LACK OF BARGAINING OVER KUWAIT'S OPEC QUOTA WORKS AS PLANNED ACCORDING TO OPEC SOURCES THE STRATEGY WAS ORCHESTRATED BY SUCH LEADING OIL MINISTERS AS HISHAM NAZER OF SAUDI ARABIA THE INTENT WAS TO APPEASE IRAN BELIEVED TO BE PRODUCING MORE THAN ITS QUOTA RATHER THAN KUWAIT WHICH APPEARS TO HAVE LIVED UP TO ITS OPEC COMMITMENTS SINCE THE PERSIAN GULF WAR THE IDEA IS NOT AS BIZARRE AS IT MAY SEEM GHOLAMREZA AGHAZADEH IRAN'S OIL MINISTER IS SEEN AS MORE LIKELY TO RESTRAIN HIS OUTPUT IF HE IS WITHIN THE QUOTA SYSTEM MR ALBAGHLI WHO ALREADY HAS PLEDGED HE WON'T PUMP ENOUGH OIL TO DRIVE DOWN THE PRICE IS SEEN AS KEEPING HIS WORD WHETHER HE IS IN OR OUT HE'S AN HONEST MAN BUT WITHOUT NEGOTIATING SKILLS SAID A SENIOR OPEC DELEGATE IN FEBRUARY MR ALBAGHLI HAD RELUCTANTLY AGREED TO CUT OUTPUT 400000 BARRELS A DAY ON CONDITION THAT HE WOULD HAVE PRODUCTION PARITY JULY 1 WITH COUNTRIES OF SIMILAR CAPACITIES HE EXPECTED TO COLLECT THE PAYOFF ON THE PROMISE A THIRDQUARTER QUOTA OF 2160000 BARRELS A DAY TO COME AT THIS MEETING BUT THE CONSENSUS HERE WAS THAT OIL MARKETS ARE TOO WEAK TO SUPPORT SIGNIFICANT PRODUCTION INCREASES ALSO IRAN'S MR AGHAZADEH INSISTED ON PERCENTAGE QUOTA INCREASES MATCHING KUWAIT'S NEVERTHELESS A SAUDIVENEZUELA PROPOSAL TO ROLL OVER CURRENT QUOTAS TO THE THIRD QUARTER FOR ALL EXCEPT KUWAIT WHICH WOULD HAVE BEEN ALLOWED AN INCREASE OF 160000 BARRELS A DAY MR ALBAGHLI EMPHATICALLY REJECTED THE OFFER IT IS UNDERSTOOD THAT HAD JEAN PING GABON'S OIL MINISTER AND OPEC'S PRESIDENT COME TO MR ALBAGHLI WITH A SECOND PROPOSAL MIDWAY BETWEEN THE 160000 BARRELS A DAY INITIALLY OFFERED AND THE 560000 BARRELS A DAY THAT KUWAIT WANTED SOME ON THE KUWAITI DELEGATION WOULD HAVE ARGUED FOR ACCEPTANCE BUT THERE WERE NO FURTHER OFFERS THE ONLY REMAINING HAGGLING WAS OVER THE WORDING OF THE OPEC NEWS RELEASE ANNOUNCING THE RESULTS OF THE MEETING ALIRIO PARRA VENEZUELA'S OIL MINISTER SAID IN AN INTERVIEW LATER THAT IF KUWAIT HAD ACCEPTED THE 10 OFFER IRAN WOULD HAVE INSISTED ON THE SAME WE COULD HAVE HAD BOTH KUWAIT AND IRAN WALK OUT MR PARRA SAID MR ALBAGHLI SAID HE HAS NO REGRETS I TOLD ALIRIO PARRA THEY LEFT A JOB UNFINISHED JUST LIKE SADDAM HUSSEIN 9306140153 930614 COMMODITIES RAWMATERIALS DEALERS ARE STARTING TO WORRY THAT CHINA WILL CUT IMPORTS SHARPLY THIS YEAR BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL LONDON CHINA HAS BECOME A MAJOR FORCE IN WORLD COMMODITY MARKETS IN RECENT YEARS AS THE COUNTRY GOBBLED UP IMPORTS TO FUEL ITS RAPID ECONOMIC EXPANSION BUT NOW BEIJING IS CONCERNED ABOUT THE POSSIBILITY OF ECONOMIC OVERHEATING AND RAWMATERIALS DEALERS ARE STARTING TO WORRY THAT CHINA WILL REDUCE IMPORTS SHARPLY THIS YEAR THE COMBINATION OF CURRENCY DEVALUATION AND CREDIT CONTRACTION IS BEGINNING TO CURB CHINA'S DEMAND FOR METALS AND OTHER RAW MATERIALS SAYS GAVIN SANDERSON A TRADER AT METALS RESOURCES GROUP A COMPANY THAT ACTIVELY DEALS WITH CHINA IN COBALT NICKEL AND OTHER METALS FOLLOWING A SURGE IN IMPORTS IN 1992 AND THE FIRST QUARTER OF THIS YEAR HE SAYS CHINESE AND HONG KONG MERCHANTS HOLD SUFFICIENT SUPPLIES BRENDAN BROWN LONDON HEAD OF ECONOMIC RESEARCH AT MITSUBISHI FINANCE INTERNATIONAL SAYS THAT INFLATION IN SOME OF CHINA'S CITIES IS 20 TO 25 AT THE SAME TIME THERE ARE GROWING FEARS THAT CHINA WILL FOLLOW JAPAN AND SUFFER FROM A BURST SPECULATIVE BUBBLE HE SAYS THE IMPACT ON ASIA'S TRADE IS SIGNIFICANT AND COMMODITY IMPORTS ARE LIKELY TO SLIDE MR BROWN SAYS EVEN THE YEN MIGHT BE HIT BY CONTRACTING TRADE BETWEEN JAPAN AND CHINA HE SAYS CHINA'S CURRENCY THE YUAN SLUMPED TO 105 TO THE DOLLAR LAST WEEK FROM 73 AT THE BEGINNING OF THE YEAR MR SANDERSON SAYS AS A RESULT PRICES OF IMPORTS HAVE SOARED SINCE THE PEOPLE'S BANK OF CHINA THE COUNTRY'S CENTRAL BANK ALSO RAISED INTEREST RATES ON LOANS TO 94 FROM 86 IN MIDMAY IT IS MORE DIFFICULT FOR IMPORTERS TO FUND FOREIGN PURCHASES HE SAYS THE COST OF IMPORTED ALUMINUM IS UP 37 THIS YEAR WHILE NICKEL IS 32 HIGHER EVEN COPPER PRICES WHICH HAVE TUMBLED ON WORLD MARKETS SINCE APRIL ARE 12 HIGHER IN YUAN THAN AT THE BEGINNING OF THE YEAR CHINESE GOLD DEALINGS ARE MORE DIFFICULT TO FATHOM DEALERS SAY BUT IN MARCH WHEN THE INTERNATIONAL DOLLAR PRICE WAS AROUND 330 AN OUNCE GOLD WAS TRADING AT 680 AN OUNCE IN CHINA SAYS FRITZ PLASS A DIRECTOR OF DEUTSCHE BANK AG WHICH HAS CLOSE ASIAN LINKS SEVERAL SIGNALS POINT TO A CYCLICAL PEAK IN CHINA'S DEMAND FOR METALS ALTHOUGH THE NATION IS EXPECTED TO REMAIN A SIGNIFICANT BUYER IN INTERNATIONAL MARKETS OVER THE LONG TERM COPPER PRICES INITIALLY SOARED IN THE AUTUMN OF LAST YEAR MAINLY BECAUSE OF CHINESE PURCHASES IN APRIL HOWEVER PRICES BEGAN TO FALL AND CHINESE AND HONG KONG HOLDERS DUMPED METAL LEADING TO A RAPID SLIDE SAYS EDWIN ARNOLD LONDON METALS ANALYST AT MERRILL LYNCH PIERCE FENNER & SMITH LOSSES ON SPECULATIVE COPPER TRADING ON THE LONDON METALS EXCHANGE AMOUNT TO SEVERAL HUNDREDS OF MILLIONS OF DOLLARS DEALERS SAY SINCE THE LOSSES MUST BE REPAID WITH DEVALUED YUAN SOME CHINESE COMPANIES ARE HURTING BADLY A LONDON METALS DEALER SAYS OTHER RAW MATERIALS THERE WAS SIMILAR SPECULATION THROUGH 1992 TO THE END OF THE FIRST QUARTER OF THIS YEAR IN OTHER RAW MATERIALS INCLUDING NICKEL ALUMINUM STAINLESS STEEL AND COBALT ON INTERNATIONAL MARKETS AND IN CHINA ITSELF DEALERS SAY THE SHANGHAI METALS EXCHANGE OPENED IN MAY LAST YEAR AND TRADED THE EQUIVALENT OF MORE THAN EIGHT MILLION METRIC TONS OF METALS DURING THAT PERIOD EXCHANGE OFFICIALS SAID NOW CHINESE IMPORTS ARE SLOWING DOWN DEALERS SAY ALTHOUGH COPPER PRICES RALLIED IN RECENT WEEKS THE MARKET IS VULNERABLE BECAUSE THERE ARE STILL LARGE CHINESE STOCKS MR ARNOLD OF MERRILL LYNCH SAYS THE WORLD STEEL INDUSTRY WAS SAVED BY THE CONSTRUCTION BOOM IN CHINA LAST YEAR SAYS PHILIP TOMLINSON MANAGER OF COMMODITY RESEARCH UNIT'S STEEL DIVISION AS THE BOOM WINDS DOWN STEEL PURCHASES ARE LIKELY TO FALL HE SAYS ADDING THAT THE DOWNTURN MAY WELL START IN THE FOURTH QUARTER CHINESE PURCHASES OF GOLD ARE ALSO BEGINNING TO DECLINE AFTER HECTIC TRADING IN THE 15 MONTHS TO MARCH ASIAN GOLD IMPORTS SURGED IN THE FIRST QUARTER AS JEWELERS AND TRADERS IN HONG KONG TAIWAN AND SINGAPORE RAISED BULLION INVENTORIES IN ANTICIPATION OF MORE PURCHASES FROM CHINA MR PLASS OF DEUTSCHE BANK SAYS BUT FOLLOWING THE GOLDPRICE SURGE SINCE APRIL ASIAN JEWELERS ARE FINDING THAT THEIR CUSTOMERS FROM CHINA ARE BECOMING RELUCTANT TO BUY HE SAYS AS A RESULT SINGAPORE HONG KONG AND TAIWAN ARE NOW BUYING LESS GOLD HE ADDS SINGAPORE'S FIRSTQUARTER GOLD IMPORTS SURGED 26 TO 135 TONS LOCAL DEALERS SAY SINCE THEN PHYSICAL DEMAND IS DOWN AROUND 50 THEY SAY SIMILAR TRENDS ARE EVIDENT IN HONG KONG AND TAIWAN SAYS ANDREW SMITH PRECIOUS METALS ANALYST AT UNION BANK OF SWITZERLAND ANOTHER BANK WITH STRONG ASIAN LINKS 9306140152 930614 LEISURE & ARTS TELEVISION THE THINKING MAN'S ROBIN LEACH BY DOROTHY RABINOWITZ WATCHING CLIVE JAMES' FAME IN THE 20TH CENTURY FEELS FOR A GOOD WHILE RATHER LIKE THE EXPERIENCE OF SITTING AROUND SOME LIVING ROOM LISTENING TO THE LIFE OF THE PARTY DELIVER STREAMS OF ONELINERS THIS PARTY IS OF COURSE EIGHT HOURS LONG THE SERIES WHICH AIRED IN DOUBLE SEGMENTS LAST WEEK BEGINS ITS REGULAR PBS RUN TONIGHT 89 PM CHECK LOCAL LISTINGS AND CONTINUES ON CONSECUTIVE MONDAYS MR JAMES'S JAUNTY MIX OF EPIGRAMS AND CRACKS HAS NATURALLY BEEN WEDDED TO PICTURES BUT EVEN SO THIS IS A SCRIPT WITH A LIFE OF ITS OWN MOST OF THAT LIFE IF NOT ALL OF IT DERIVES FROM ITS STEADFAST IRONIC STANCE IRONY AS OPPOSED TO SITCOM BROADSIDES ISN'T MUCH OF A PRESENCE ON OUR TV WHETHER ON THE COMMERCIAL NETWORKS OR OUR UNREMITTINGLY AND MOST OF THE TIME UNBEARABLY EARNEST PUBLIC TELEVISION NETWORK IT IS JUST AS RARE IN POLITICAL DISCOURSE WHICH LIKEWISE TENDS TOWARD IMPLACABLE EARNESTNESS AND MOST OTHER SORTS OF DISCOURSE INCLUDING JOURNALISM THAT RARITY MAY BE THE REASON PEOPLE SEEM TO BE HAVING TROUBLE NOWADAYS REMEMBERING WHAT IRONY IS AND ISN'T THAT FACT CAME HOME WITH BLAZING CLARITY IN RECENT WEEKS DURING THE LATE GREAT JOURNALISTIC OUTPOURING OVER HILLARY CLINTON'S LIFE WORKS AND SELECTED MEDITATIONS THAT FILLED ENDLESS COLUMNS IN VANITY FAIR THE NEW YORK TIMES MAGAZINE PEOPLE AND NOT LEAST THE STYLE SECTION OF THE WASHINGTON POST THE LATTER PIECE BY THE POST'S MARTHA SHERRILL STRUCK SHALL WE SAY AN UNUSUAL JOURNALISTIC TONE THE FIRST LADY IS MS SHERRILL INFORMED US BOTH IMPERSONAL AND POIGNANT WITH MUCH MORE DEPTH INTELLECT AND SPIRITUALITY THAN WE ARE USED TO IN A POLITICIAN AND FURTHER SHE IS SUPERBLY WITHOUT CYNICISM TOO FOLLOWING THESE EFFUSIONS MS SHERRILL EXPLAINED THAT THE FIRST LADY WANTS TO HAVE FELT UNIFIED WHOLE SHE WANTS HER EMOTIONAL LIFE AND PHYSICAL LIFE HER SPIRITUAL LIFE AND POLITICAL LIFE ALL TO FIT TOGETHER AN ORCHESTRA SITTING DOWN TO PLAY THE SAME SONG I DON'T WANT TO MISLEAD YOU THE FIRST LADY HERSELF CAUTIONS I'M NOT THERE YET ON AND ON THE PIECE GOES IN MUCH THE SAME REMARKABLE VEIN BUT THE MOST INTERESTING THING ABOUT THIS MAY 6 COLUMNBESIDE THE FACT THAT IT WAS PUBLISHED WAS THE NUMBER OF PEOPLE WHO UPON READING IT AT FIRST BELIEVED THEY WERE LOOKING AT A SENDUP OF SOME KIND OF COURSE IT WAS NOTHING OF THE KIND WITH A BIT OF TRIMMING HERE AND THERE IT WOULD NEEDLESS TO SAY HAVE SERVED QUITE NICELY AS SATIRE SO WOULD THE ADVENTURES OF FRIEND OF BILL HARRY THOMASON WHO HAS WON SPECIAL FAME FOR HIS ROLE IN THE TRAVEL OFFICE FIRINGS AND THE HAIR CUT FOLLIES MR THOMASON RECENTLY EXPLAINED THE SOCIOLOGICAL LIGHT IN WHICH CHRISTOPHE'S SERVICE TO MR CLINTON SHOULD BE VIEWED I MEAN HE TOLD A TELEVISION REPORTER HE COMES FROM BELGIUM SO ITS IMPORTANT TO GET HIM TO PARTICIPATE THUS DID WE COME TO UNDERSTAND THAT THE HAIRCUT WAS CRUCIAL TO THE ADVANCE OF MULTICULTURALISM AND IT WAS GOOD TO BE REMINDED OF THE WILLFUL NEGLECT OF BELGIUM IN THIS AND PREVIOUS ADMINISTRATIONS MR THOMASON SPOKE HERE NEEDLESS TO SAY IN ALL SOLEMNITY SOME ACQUAINTANCE WITH THE USES OF IRONY MIGHT BE USEFUL TO THE NEWLY FAMOUS OF OUR TIME MR JAMES' OWN IRONIC OBSERVATIONS ON THE FAMOUS CAN RUN ON OCCASION TO THE LUMPISH AS WHEN HE OBSERVES THAT NEVILLE CHAMBERLAIN COULDN'T HELP IT IF HE LOOKED VAGUELY LIKE A WALRUS WHO HOPED HIS KEEPER WOULD THROW HIM A FISH ON THE OTHER HAND THIS AND THE REST OF THE COMMENT GIVES AN ACCURATE PICTURE OF MR CHAMBERLAIN ONE THAT DERIVES NOT FROM THE IMAGES ON THE SCREEN BUT FROM THOSE MADE BY THE WORDS ONE OF THE NOTEWORTHY THINGS ABOUT THIS TELEVISION SERIES IN FACT IS THE DEGREE TO WHICH THE WORDS OVERPOWER THE PICTURES FOR PEOPLE WHO DON'T WANT TO HEAR ANY MORE ABOUT THE IMPORTANCE OF PREPARING FOR LIFE IN A TOTALLY VISUAL AGE THERE IS SOMETHING DISTINCTLY HEARTENING IN THIS ABOUT JOHN WAYNE WE LEARN THAT HE DID MORE THAN HIS SHARE TO CONVINCE AMERICA THAT THE IDEAL MAN SAID NO MORE THAN HE COULD HELP WANTED TO HELP THE HELPLESS AND WAS HELPLESS HIMSELF WHERE WOMAN WERE CONCERNED MR JAMES TAKES A NICE SWIPE AT ERNEST HEMINGWAY IN HEMINGWAYESQUE PROSE OF HEMINGWAY THE MAN MR JAMES SAYS THAT HE WAS IN AFRICA ON THE HUNT FOR THE FEW REMAINING ANIMALS HE HAD NOT ALREADY KILLED HE COULD NEVER HAVE ENOUGH OF KILLING LIVING THINGS FINALLY HE DID IT TO HIMSELF WITH A SHOTGUN THE SCRIPT IS AT ITS BEST ON THE BRITISH AND WORLD WAR II CHURCHILL JAMES OBSERVES WAS PRACTICALLY ALL THAT BRITAIN HAD TO FIGHT WITH HIS NATION AND THE FREE WORLD WERE INSPIRED BY WHAT WAS REALLY AN ACT BUT IT WAS A REAL ACT HE WAS REALLY LIKE THAT THERE WERE HE ADDS PLENTY OF OTHER PEOPLE AROUND CHURCHILL WHO HAD BETTER JUDGMENT THAT WAS WHAT TOLD THEM HE WAS THEIR ONLY HOPE OF THE DUKE OF WINDSOR WE HEAR THAT HE WAS SELFCONDEMNED TO A CAREER AS AN INTERNATIONAL HOUSE GUEST ONE OF THE WINDSORS' FIRST HOSTS WAS ADOLF HITLER FOR WHOM THEIR ADMIRATION WAS UNBOUNDED HITLER WAS DELIGHTED OUT OF WORK KINGS WERE TURNING UP TO TELL HIM HE WAS MARVELOUS OF RONALD REAGAN MR JAMES NOTES THAT THERE WAS MORE TO HIM THAN THOSE WHO MOCKED HIM THOUGHT THERE WAS NO MAN IN AMERICA TO MATCH HIM THE ONLY MAN TO MATCH HIM WAS IN BRITAIN AND SHE WAS A WOMAN THE RAPPORT THAT GREW BETWEEN MARGARET THATCHER AND RONALD REAGAN ADDS MR JAMES WAS THE BIGGEST TRANSATLANTIC ROMANCE SINCE CLARK GABLE EMBRACED VIVIEN LEIGH THIS HIGHLY ENJOYABLE RIDE ENDS ON AN ODDLY LUGUBRIOUS NOTE WITH A FINAL CHAPTER SERMONETTE WARNING ABOUT THE PRICE OF FAME PERHAPS MR JAMES WAS AFFECTED BY THE REPRESENTATIVE STARS OF OUR CURRENT AGE IT ISN'T HIS FAULT AT ANY RATE THAT MUCH OF THE FINAL CHAPTER SEEMS DREARY STALE FLAT BUT PROBABLY PROFITABLE BLAME IT ON THE NATURE OF THE FAMOUS WHO EMERGE HERE MADONNA SAY WHO REMIND US OF JUST EXACTLY WHERE IT IS WE HAVE ARRIVED 9306140151 930614 TECHNOLOGY ADOBE SYSTEMS TO UNVEIL PROGRAM TO LET COMPUTERS SHIP COMPLEX DOCUMENTS BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL MOUNTAIN VIEW CALIF IF ADOBE SYSTEMS INC GETS ITS WAY CORPORATE MANAGERS AROUND THE US MAY SOON BE SAYING PDF IT TO ME INSTEAD OF FEDEX IT PDF STANDS FOR PORTABLE DOCUMENT FORMAT AND IT IS THE CENTERPIECE OF A NEW PROGRAM CALLED ADOBE ACROBAT THAT ENABLES COMPLEX DOCUMENTS SUCH AS SPECIALLY TYPESET NEWSLETTERS LAID OUT WITH PHOTOGRAPHS TO BE SHIPPED FROM COMPUTER TO COMPUTER RATHER THAN BY MAIL OR BY HAND ADOBE A MAKER OF DESKTOP PUBLISHING SOFTWARE WILL INTRODUCE ACROBAT TOMORROW THOUGH OTHER COMPANIES HAVE INTRODUCED TECHNOLOGIES THAT ALLOW THE EXCHANGE OF COMPLEX DOCUMENTS AMONG COMPUTERS USING THE SAME OPERATING SYSTEM ACROBAT IS CONSIDERED SIGNIFICANT BECAUSE IT ALLOWS TRANSFER OF FILES BETWEEN DISPARATE OPERATING SYSTEMS BETWEEN SAY APPLE COMPUTER INC'S MACINTOSH AND MACHINES RUNNING MICROSOFT CORP'S WINDOWS ACROBAT ALLOWS A USER TO DISPLAY AND PRINT WITHOUT ANY REPROGRAMMING A DOCUMENT EXACTLY AS IT LOOKED WHEN IT WAS CREATED ON A DIFFERENT MACHINE SOMETHING THAT COULDN'T BE DONE BEFORE CONCEPTUALLY IT'S ONE STEP CLOSER TO THE PAPERLESS OFFICE SAYS ROBERT REICH PROJECT MANAGER FOR MOODY'S INVESTORS SERVICE INC A NEW YORK RATING FIRM THAT HAS BEEN USING ACROBAT ON TRIAL ANALYSTS SAY ACROBAT COULD BE ADOBE'S BIGGEST REVENUE PRODUCER SINCE ITS 1985 INTRODUCTION OF POSTSCRIPT A TECHNOLOGY THAT HAS BECOME A STANDARD FOR HIGHQUALITY PRINTING OF TYPEFACES IN DESKTOP COMPUTERS ACROBAT HAS THE POTENTIAL TO BE ADOBE'S FIRST MASS MARKET PRODUCT EVENTUALLY RESIDING ON MILLIONS OF PERSONAL COMPUTERS ANALYST MH REACH OF MERRILL LYNCH CAPITAL MARKETS WROTE IN A RECENT REPORT CRITICS SAY ACROBAT ISN'T FLAWLESS IT OFFERS ONLY LIMITED ABILITY TO SEARCH THROUGH A FILE FOR SPECIFIC TEXT FOR EXAMPLE AND DOESN'T ALLOW A USER TO EDIT A DOCUMENT I THINK IT'S GOT WIDESPREAD APPEAL BUT IT HAS SOME HOLES SAYS CURT ALLEN EXECUTIVE VICE PRESIDENT OF FOLIO CORP AN ELECTRONIC PUBLISHER IN PROVO UTAH ADOBE SAYS IT WILL ADD THOSE FEATURES LATER AND ANALYSTS SAY ACROBAT MAY FACE COMPETITION FROM THE LIKES OF APPLE AND MICROSOFT JUST LAST WEEK MICROSOFT ANNOUNCED NEW SOFTWARE TO LINK OFFICE EQUIPMENT THE POTENTIAL FOR THIS IF IT TAKES OFF IS VERY SIGNIFICANT BUT I THINK THERE IS SOME RISK THAT EVEN IF IT DOES TAKE OFF COMPETING PRODUCTS COULD HURT SAYS JOEL WECKSELL A VICE PRESIDENT FOR GARTNER GROUP A MARKET RESEARCH FIRM BUT JOHN E WARNOCK ADOBE'S CHIEF EXECUTIVE OFFICER SAYS MICROSOFT'S NEW SOFTWARE ISN'T COMMERCIALLY AVAILABLE WHILE ACROBAT WILL BE AVAILABLE IN THREE VERSIONS TOMORROW WHEN ADOBE EXPECTS TO NAME CORPORATIONS ENDORSING THE TECHNOLOGY COMPANY OFFICIALS SAY RETAIL PRICES WILL BE NORTH OF 100 FOR A VERSION CALLED EXCHANGE THAT ALLOWS VIEWING OF A DOCUMENT AS WELL AS PRINTING ANNOTATIONS AND OTHER FUNCTIONS ANOTHER VERSION ACROBAT READER ALLOWS JUST VIEWING TESTERS SAY ACROBAT IS A BIG STEP TOWARD THE ELUSIVE PAPERLESS OFFICE MARK GOLDENBERG AN ENGINEER AT GENERAL MOTORS CORP'S HUGHES AIRCRAFT UNIT SAYS HE USES THE SOFTWARE TO SEND TRAINING BROCHURES ELECTRONICALLY TO AS MANY AS 50 WORKERS WHO ATTEND HIS MONTHLY PRESENTATIONS I USED TO HAVE TO SIT DOWN FOR PROBABLY HALF AN HOUR AND PHOTOCOPY THESE THINGS AND STAPLE THEM TOGETHER MR GOLDENBERG SAYS NOW I WILL MAIL' IT IN SECONDS TO ALL PARTICIPANTS TRIBUNE CORP'S CHICAGO TRIBUNE HAS FOUND THAT IT CAN USE ACROBAT TO ALLOW ADVERTISERS TO SEND ADS TO THE PAPER ELECTRONICALLY AND THE PAPER'S OFFICIALS SAY IT COULD USE THE PROGRAM TO DELIVER NEWSPAPERS TO SUBSCRIBERS' COMPUTERS I THINK IT WILL PROVE TO BE THE WAY WE CAN START MAKING COMPUTERS TALK TO EACH OTHER NO MATTER HOW DISSIMILAR THEY ARE SAYS HOWARD VAUGHN THE TRIBUNE'S PREPRESS PROJECT MANAGER 9306140150 930614 POLITICS & POLICY AIR STRIKES IN SOMALIA OVER WEEKEND RAISE QUESTIONS ABOUT US INTENTIONS BY THOMAS E RICKS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A WEEKEND OF AIR STRIKES AND OTHER VIOLENCE IN SOMALIA RAISED QUESTIONS ABOUT WHETHER THE US IS WITHDRAWING FROM THE AFRICAN COUNTRY OR BECOMING MORE DEEPLY INVOLVED IN ITS PROBLEMS US SPECIAL OPERATIONS AC130 SPECTRE GUNSHIPS ATTACKED TARGETS IN THE SOMALI CAPITAL OF MOGADISHU IN RAIDS ON FRIDAY AND SATURDAY NIGHTS AS WELL AS LAST NIGHT THE HEAVILY ARMED AIRCRAFT WHICH CARRY 105MM HOWITZERS HIT WEAPONS WAREHOUSES AND RADIO FACILITIES CONTROLLED BY MOHAMED FARRAH AIDID A LEADING SOMALI WARLORD THE ATTACKS WERE IN RESPONSE TO A JUNE 5 AMBUSH IN WHICH 73 PAKISTANI SOLIDERS WHO ARE PART OF THE UNITED NATIONS PEACEKEEPING FORCE WERE KILLED OR WOUNDED THE UN HOLDS MR AIDID'S FORCES RESPONSIBLE FOR THAT AMBUSH YESTERDAY PAKISTANI TROOPS FIRED ON CROWDS OF PROAIDID DEMONSTRATORS PROTESTING THE AIR RAIDS AND KILLED AT LEAST 20 PEOPLE ACCORDING TO WIRE SERVICE REPORTS IT WASN'T CLEAR WHETHER SOME DEMONSTRATORS WERE ARMED RETIRED US ADM JONATHAN HOWE THE SPECIAL UN ENVOY TO SOMALIA SAID YESTERDAY ON NBCTV'S MEET THE PRESS THAT THE US IS CONSIDERING SUPPLYING REINFORCEMENTS TO THE UN PEACEKEEPING FORCE IF SO THEY MOST LIKELY WOULD COME FROM THE 2200 MARINES OF THE 24TH MARINE EXPEDITIONARY UNIT WHICH WAS NEAR THE PERSIAN GULF BUT HAS BEEN DIVERTED TOWARD THE HORN OF AFRICA THE US CURRENTLY HAS ABOUT 4200 TROOPS IN SOMALIA MAINLY FROM THE ARMY'S 10TH MOUNTAIN DIVISION THE US LANDED IN SOMALIA IN DECEMBER TO STABILIZE THE ENVIRONMENT SO THAT FOOD AID COULD BE DELIVERED AND THEN TURNED OVER COMMAND OF THE OPERATION TO UN PEACEKEEPERS MAY 4 THE MESSAGE OF THE US AIR RAID SAID ONE SENIOR DEFENSE DEPARTMENT OFFICIAL WHO BRIEFED REPORTERS ON THE CONDITION THAT HE NOT BE IDENTIFIED IS THAT THE PROCESS OF UNIFICATION HAS TO TAKE PLACE ANOTHER OFFICIAL ADDED BY ANY MEASURE IT'S A VERY SIGNIFICANT MILITARY SETBACK TO AIDID BUT MR AIDID REJECTED THAT MESSAGE IN AN INTERVIEW YESTERDAY ON CBSTV'S FACE THE NATION HE SAID THE US SHOULD STOP KILLING SOMALI PEOPLE BECAUSE KILLING WON'T SOLVE ANYTHING IT ISN'T CLEAR HOW THE WEEKEND'S ACTION WILL AFFECT THE BALANCE OF POWER AMONG SOMALI FACTIONS SAID S SAMATAR A PROFESSOR OF AFRICAN HISTORY AT RUTGERS UNIVERSITY PREDICTED THE WARLORD WILL RESPOND VIOLENTLY I THINK HE'LL ATTACK AID WORKERS HE SAID THAT'S A PROBABILITY IN ADDITION HE SAID MASSACRES COULD OCCUR IF OTHER FACTIONS INTERPRET THE US RAIDS AS A GREEN LIGHT TO ATTACK MR AIDID'S HABARGIDIR SUBCLAN STOPPING SUCH BLOODLETTINGS PROBABLY WOULD REQUIRE MORE US MILITARY HELP WHICH COULD PROVE POLITICALLY DIFFICULT FOR THE CLINTON ADMINISTRATION NOTING THAT JUST OVER A MONTH AGO THE WHITE HOUSE HELD A CEREMONY TO COMMEMORATE THE PASSING OF COMMAND IN SOMALIA TO THE UN SENATE REPUBLICAN LEADER ROBERT DOLE SAID YESTERDAY ON CNN'S NEWSMAKER SUNDAY THAT I THOUGHT WE WERE GETTING OUT REFERRING TO THE SOMALI DEMONSTRATORS KILLED BY THE PAKISTANI PEACEKEEPERS HE ADDED THE AMERICAN PEOPLE AREN'T GOING TO SUPPORT THIS MUCH LONGER IF WE FIND MORE OF THIS HAPPENING SOME COMMENTATORS YESTERDAY INVOKED THE MARINES DISASTER IN BEIRUT A DECADE AGO IN WARNING AGAINST CONTINUED US INVOLVEMENT IN SOMALIA BUT MILITARY WRITER ERIC HAMMEL AUTHOR OF A STUDY OF THE EVENTS THAT LED TO 241 SERVICEMEN BEING KILLED IN A TERRORIST BOMBING IN BEIRUT IN OCTOBER 1983 REJECTED THAT ANALOGY WHILE THE US CLEARLY IS OPPOSED TO MR AIDID HE SAID IT HAS AVOIDED INADVERTENTLY TAKING SIDES AS IT DID IN LEBANON BUT HE DID FAULT THE NATURE OF THE US PRESENCE IN SOMALIA CONTENDING THAT MORE SHOULD BE DONE TO BUILD UP THE INFRASTRUCTURE WHAT ARE THE US TROOPS THERE DOING GUARDING THEMSELVES HE SAID THEY SHOULD BE GUARDING ENGINEERS WHO ARE REBUILDING THE COUNTRY 9306140149 930614 WHAT'S NEWS BUSINESS AND FINANCE PRODUCER PRICES WERE UNCHANGED FOR MAY SUGGESTING THAT FEARS OF RISING INFLATION ARE UNWARRANTED IF TOMORROW'S CONSUMER PRICE REPORT IS SIMILARLY ENCOURAGING THE FED IS LIKELY TO HOLD OFF ON ANY RISE IN SHORTTERM INTEREST RATES SEPARATELY RETAIL SALES GREW ONLY 01 LAST MONTH ANOTHER HINT THAT THE ECONOMIC RECOVERY REMAINS DISAPPOINTING SENATE DEMOCRATS ARE STRUGGLING TO MAKE UP FOR THE 70 BILLION IN REVENUE LOST WHEN THEY DELETED A BROAD ENERGY TAX FROM CLINTON'S DEFICITREDUCTION PLAN BUT THE ALTERNATIVES A TAX RISE IN TRANSPORTATION FUELS AND CUTS IN MEDICARE AND MEDICAID ARE ALSO ATTRACTING SIGNIFICANT OPPOSITION GENERAL MOTORS' SATURN POSTED AN OPERATING PROFIT FOR MAY THE UNIT'S FIRST SUCH PROFIT EVER SATURN SAID THE PERFORMANCE MEANS THE COMPANY IS ON TRACK TO BREAK EVEN FOR THE YEAR AFTER A LOSS OF 700 MILLION LAST YEAR SATURN WORKERS WILL RECEIVE BONUSES OF 1000 EACH BECAUSE OF THE MAY PROFIT FORD CUT PRICES BY AS MUCH AS 155 ON ITS BIG FORD CROWN VICTORIA AND MERCURY GRAND MARQUIS SEDANS APPARENTLY REACTING TO THE SUCCESS OF HEAVILY ADVERTISED VALUE PRICING DEALS ON LARGE CARS MADE BY GM BILL COSBY IS PREPARING A SECOND BID FOR GENERAL ELECTRIC'S NBC NETWORK PEOPLE IN THE INDUSTRY SAY HE IS LINING UP INVESTORS TO RAISE HIS BID FROM HIS INITIAL 2 BILLION PROPOSAL METROGOLDWYNMAYER IS IN TALKS TO APPOINT FRANK MANCUSO FORMER PARAMOUNT STUDIO CHIEF TO A TOP POST SAID PEOPLE CLOSE TO THE SITUATION THE FILM JURASSIC PARK TOOK IN A RECORD 48 MILLION TO 50 MILLION IN ITS THREEDAY OPENING ITS STUDIO MATSUSHITA'S UNIVERSAL PICTURES SAID ADOBE SYSTEMS PLANS TOMORROW TO INTRODUCE SOFTWARE TO LET COMPLEX DOCUMENTS BE SHIPPED BETWEEN COMPUTERS WITH DISPARATE OPERATING SYSTEMS THE PROGRAM COULD BE ADOBE'S BIGGEST SELLER SINCE ITS POSTSCRIPT SOFTWARE STATES MAY PROTECT THE INTERESTS OF POLICYHOLDERS OVER THOSE OF THE US GOVERNMENT IN LIQUIDATIONS OF FAILED INSURERS THE SUPREME COURT SAID BUT STATES MAY NOT SUBORDINATE CLAIMS OF THE GOVERNMENT TO THOSE OF BUSINESS CREDITORS OR THE INSURERS' EMPLOYEES THE FCC IS PLANNING TO DELAY ORDERING CUTS IN CABLE TELEVISION RATES UNTIL CONGRESS COMES UP WITH THE MONEY TO ENFORCE NEW REGULATIONS IN THE MEANTIME THE FCC'S CURRENT FREEZE ON CABLE TV RATES WILL BE EXTENDED TWO OF DONALD TRUMP'S COMPANIES PLAN TO SELL ABOUT 375 MILLION IN JUNK NOTES SOME OF WHICH WILL BE RATED LOWER THAN THE DEBT THEY WILL REPLACE SOME NOTES COULD YIELD UP TO 13 NORTHWEST AIRLINES AND ITS UNIONS SCRAMBLED TO RESTART NEGOTIATIONS ON A NEW COSTCUTTING AGREEMENT IN THE WAKE OF THE MACHINISTS' REJECTION OF AN ACCORD REACHED LAST MONTH MICROSOFT IS EXPLORING POSSIBLE ALLIANCES WITH ENTERTAINMENT AND CABLE COMPANIES TO ESTABLISH SOFTWARE STANDARDS FOR INTERACTIVE TELEVISION TIME WARNER AND TELECOMMUNICATIONS ARE AMONG THE PROSPECTIVE PARTNERS BONDS LEHMAN BROTHERS TREASURY INDEX 517645 UP 3752 COMMODITIES OIL 1898 A BARREL OFF 30 CENTS DOW JONES FUTURES INDEX 12003 OFF 053 SPOT INDEX 11989 OFF 004 DOLLAR 10620 YEN UP 010 16275 MARKS OFF 00028 9306140148 930614 MERCK WILL SELL CALGON CHEMICALS UNIT TO ENGLISH CHINA FOR 3075 MILLION WHITEHOUSE STATION NJ MERCK & CO SAID IT AGREED TO SELL ITS SPECIALTY CHEMICALS BUSINESS CALGON WATER MANAGEMENT TO ENGLISH CHINA CLAYS PLC FOR ABOUT 3075 MILLION LONDONBASED ENGLISH CHINA CLAYS WHOSE US OPERATIONS ARE BASED IN ATLANTA SAID THE TRANSACTION WILL BE FINANCED THROUGH A RIGHTS ISSUE AND BANK BORROWINGS MERCK HAD SAID IN FEBRUARY THAT IT INTENDED TO SELL CALGON A PRODUCER AND SUPPLIER OF SPECIALTY CHEMICALS FOR WATER TREATMENT PAPERMAKING COSMETICS SURFACE TREATMENT AND OTHER INDUSTRIAL USES ENGLISH CHINA CLAYS IS A LEADING PRODUCER OF KAOLIN AN ESSENTIAL MINERAL USED IN PAPER MANUFACTURING AND MAKES INDUSTRIAL MINERAL PIGMENTS FOR CERAMICS PAINTS AND POLYMERS ENGLISH CHINA SAID IT EXPECTS TO EXPAND CALGON'S SALES TO THE NORTH AMERICAN PAPER INDUSTRY DEVELOP CALGON'S BUSINESS OUTSIDE THE US AND USE CERTAIN CALGON CHEMICALS FOR ITS OWN OPERATIONS MERCK SAID IT WOULD RECORD THE SALE IN THE THIRD QUARTER BUT IT WOULD HAVE NO MATERIAL EFFECT ON EARNINGS AS PREVIOUSLY ANNOUNCED MERCK'S DECISION TO SELL CALGON REFLECTS ITS INTENTION TO FOCUS MORE FULLY ON ITS CORE PHARMACEUTICAL AND HEALTHCARE BUSINESS SEPARATELY ENGLISH CHINA SAID IT HAS DECIDED TO PURSUE THE SPINOFF OF ITS CONSTRUCTION MATERIALS INTERESTS AS PART OF ITS STRATEGY TO REPOSITION THE COMPANY IN INTERNATIONAL BUSINESSES WHICH ADD VALUE THROUGH TECHNOLOGICAL KNOWHOW THE COMPANY SAID THAT ECC CONSTRUCTION MATERIALS WITH MORE THAN 4000 EMPLOYEES IS A QUARRIER AND SUPPLIER OF AGGREGATES AND MANUFACTURES AND SUPPLIES CONCRETE PRODUCTS AND IS ENGAGED IN ROAD SURFACING PRIMARILY IN BRITAIN AND THE US IN 1992 THE UNIT HAD SALES OF 3524 MILLION 538 MILLION AND OPERATING PROFIT BEFORE EXCEPTIONAL ITEMS OF 155 MILLION MERCK SHARES ROSE FRIDAY AFTER THE ANNOUNCEMENT CLOSING AT 38625 UP 1 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING VOLUME WAS MORE THAN TWO MILLION SHARES 9306140147 930614 USGERMAN TRADE SETTLEMENT HURTS EC'S EFFORTS TO PRESENT UNIFIED FRONT BY BOB HAGERTY AND TIMOTHY AEPPEL STAFF REPORTERS OF THE WALL STREET JOURNAL BRUSSELS LAST WEEK'S USGERMAN UNDERSTANDING ON TRADE MARKS ANOTHER SETBACK FOR THE EUROPEAN COMMUNITY IN ITS STRUGGLE TO NEGOTIATE WITH ONE VOICE THE EC'S EXECUTIVE COMMISSION REACTED ANGRILY FRIDAY TO NEWS THAT BONN AND WASHINGTON HAD REACHED A CEASEFIRE OF THEIR OWN IN A LONGRUNNING ECUS DISPUTE OVER TRADE IN TELECOMMUNICATIONS EQUIPMENT EC OFFICIALS ACCUSED GERMANY OF BREAKING RANKS WITH OTHER COMMUNITY MEMBERS THE OFFICIALS ALSO THREATENED TO TAKE LEGAL ACTION AGAINST BONN THE TRANSATLANTIC DISPUTE INVOLVES AN EC LAW EFFECTIVE LAST JAN 1 GIVING EUROPEAN SUPPLIERS AN EDGE OVER FOREIGNERS IN BIDDING FOR TELECOMEQUIPMENT CONTRACTS IN EC MEMBER STATES THE US LATE LAST MONTH RETALIATED BY BARRING EC COMPANIES FROM BIDDING FOR CERTAIN US CONTRACTS VALUED AT ROUGHLY 20 MILLION A YEAR LAST TUESDAY EC MEMBER STATES INCLUDING GERMANY FORMALLY APPROVED A COUNTERRETALIATION SHUTTING US COMPANIES OUT OF ABOUT 15 MILLION OF CONTRACTS ANNUALLY ON THURSDAY HOWEVER US TRADE REPRESENTATIVE MICKEY KANTOR DISCLOSED IN WASHINGTON THAT GERMANY AND THE US WOULDN'T APPLY THE SANCTIONS AGAINST ONE ANOTHER THAT WAS AFTER THE GERMANS MADE IT CLEAR TO THE US THAT THEY WOULDN'T GIVE PREFERENCE TO EUROPEAN BIDDERS FOR TELECOM CONTRACTS THE GERMAN GOVERNMENT DEFENDING ITS DECISION CITED A 1954 TREATY WITH THE US BARRING DISCRIMINATORY TRADE PRACTICES GERMANY ARGUED THAT THE 1954 TREATY TAKES PRECEDENCE OVER THE 1957 TREATY OF ROME WHICH FOUNDED THE EC AND GAVE IT POWERS TO SET TRADE POLICY FOR THE WHOLE COMMUNITY EC OFFICIALS IN BRUSSELS TAKEN ABACK BY NEWS OF THE USGERMAN ARRANGEMENT RETORTED THAT THE TREATY OF ROME TAKES PRECEDENCE THEY DEMANDED CLARIFICATION OF THE GERMAN POSITION AND SAID THE MATTER MIGHT HAVE TO BE SETTLED BY THE EUROPEAN COURT OF JUSTICE AS GERMANY IS THE EC'S BIGGEST MEMBER ITS REFUSAL TO TOE THE COMMUNITY LINE REPRESENTS A SERIOUS CHALLENGE TO THE AUTHORITY OF OFFICIALS IN BRUSSELS EC OFFICIALS SOMETIMES ACCUSE THE US OF PITTING ONE EUROPEAN COUNTRY AGAINST ANOTHER IN TRADE TALKS IN AN EFFORT TO DIVIDE AND CONQUER THE GERMAN MOVE IS LIKELY TO ENCOURAGE SUCH TALK BUT GARY HUFBAUER A TRADE ECONOMIST AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS IN WASHINGTON SAID HE DOUBTS THE US DELIBERATELY DROVE A WEDGE INTO THE EC IN THIS CASE EVEN SO MR HUFBAUER ADDED THAT THE US MIGHT BENEFIT IN THE LONG RUN IF GERMANY MANAGES TO PROD ITS EC PARTNERS TOWARD FREETRADE POLICIES THE SQUABBLE COMES JUST FIVE MONTHS AFTER GERMANY ANNOYED COMMUNITY TRADE OFFICIALS BY DEFYING ANOTHER OF THEIR TRADE EDICTS IN THAT CASE THE EC COMMISSION TOLD MEMBER STATES TO BLOCK CERTAIN IMPORTS FROM CHINA AND SEVERAL OTHER COUNTRIES UNTIL THE COMMUNITY COULD AGREE ON A COMMON SET OF QUOTAS ALONG WITH BRITAIN AND THE NETHERLANDS GERMANY REFUSED TO BLOCK THE IMPORTS THE COMMISSION HAS INITIATED LEGAL ACTION AGAINST THOSE MEMBER STATES OVER THE MATTER DISCORD WITHIN THE EC ALSO HAS COMPLICATED EFFORTS TO REACH A WORLD AGREEMENT REDUCING TRADE BARRIERS UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE OR GATT OVER THE PAST SEVEN YEARS THIS DISCORD LARGELY REFLECTS THE DIFFERENT PRIORITIES OF GERMANY WHICH WANTS TO USE GATT TO OPEN UP MARKETS FOR ITS INDUSTRIAL EXPORTS AND FRANCE WHICH IS TRYING TO BLOCK ANY GATT DEAL THAT REQUIRES HEAVY SACRIFICES FROM FRENCH FARMERS GERMANY DENIED THAT IT HAD BETRAYED THE EC IN THE TELECOM CASE WE HAVE ONLY MADE THE US SIDE AWARE OF THE EXISTING LEGAL SITUATION IN GERMANY ECONOMICS MINISTER GUENTER REXRODT SAID IN A STATEMENT HE ARGUED THAT BONN HAD NO LEGAL BASIS TO ENFORCE THE EC DECISION TO APPLY SANCTIONS AGAINST THE US IN THIS CASE THE EC COMMISSION AND THE OTHER EC MEMBER STATES HAVE KNOWN OF THIS LEGAL SITUATION FOR A LONG TIME MR REXRODT SAID EC OFFICIALS MAINTAINED THAT THE GERMANS TOOK THEM BY SURPRISE WE WEREN'T CONSULTED ONE EC OFFICIAL GRUMBLED ADDING IT'S NOT CLEAR THAT THE GERMAN GOVERNMENT IS SPEAKING WITH ONE VOICE JULIE WOLF CONTRIBUTED TO THIS ARTICLE 9306140146 930614 INTERNATIONAL TURKEY LONGS FOR RESPECT REWARDS FROM WEST BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL ISTANBUL TURKEY DESPITE TURKEY'S GROWING STRATEGIC IMPORTANCE IN THE POSTCOLD WAR WORLD TURKS SAY THEY GET NO RESPECT THERE WAS WIDESPREAD ANGER HERE IN APRIL WHEN THE US SENT THE NO 2 STATE DEPARTMENT OFFICIAL TO REPRESENT IT AT THE FUNERAL OF PRESIDENT TURGUT OZAL TURKS HAD EXPECTED THE VICE PRESIDENT OR FORMER PRESIDENT BUSH EUROPE STILL REBUFFS TURKEY'S EFFORTS TO JOIN THE EUROPEAN COMMUNITY EVEN THOUGH IT'S A MEMBER OF THE NORTH ATLANTIC TREATY ORGANIZATION AND PLAYED AN IMPORTANT ROLE IN THE GULF WAR TURKEY WHICH HAS IMPROVED ITS TREATMENT OF MINORITY KURDS IS BEING URGED BY THE US TO IMPROVE ITS HUMAN RIGHTS BEHAVIOR PARTICULARLY ITS TREATMENT OF PRISONERS WHILE TURKEY HAS ASSUMED A VALUABLE ROLE IN A CHANGED WORLD IT HAS DONE SO AT A TIME WHEN THE WEST IS LESS ABLE OR LESS INCLINED TO REWARD IT SECRETARY OF STATE WARREN CHRISTOPHER CAME HERE DURING THE WEEKEND TO UNDERSCORE TURKEY'S IMPORTANCE TO THE US HE CALLED IT A STRONG REGIONAL POWER WHICH CAN BE A POSITIVE FORCE IN THE PEACEFUL SETTLEMENT OF REGIONAL DISPUTES HE PROMISED AN EXPANDED PARTNERSHIP INCLUDING INCREASED ECONOMIC COOPERATION AND POSSIBLE EXPORTIMPORT BANK LOANS FOR INFRASTRUCTURE PROJECTS BUT US RESOURCES ARE SO LIMITED THAT IN RECENT YEARS SOME OF TURKEY'S AID HAS IN EFFECT BEEN CUT BY SHIFTING 450 MILLION IN MILITARY ASSISTANCE FROM GRANTS WHICH DON'T HAVE TO BE REPAID TO LOANS AS TO WHETHER THERE'S AN INCREASE IN AID TO TURKEY IT DEPENDS SOMEWHAT ON HOW YOU COUNT IT MR CHRISTOPHER CONCEDED AT A NEWS CONFERENCE IN ANKARA DURING THE COLD WAR TURKEY KEPT WATCH OVER THE SOUTHERN FLANK OF THE SOVIET UNION BUT SINCE THE GULF WAR EUROPEANS PERCEIVE ANKARA AS HAVING MORE OF A MIDDLE EAST ROLE SAID IAN LESSER OF THE RAND CORP THE TURKS LIKE TO SEE THEMSELVES AS THE BRIDGE BETWEEN EAST AND WEST BUT THE EUROPEANS SEE TURKEY AS MORE OF A BARRIER AGAINST THE INSTABILITY OF THE MIDDLE EAST THE CAUCASUS AND CENTRAL ASIA THEY ARE A VERY USEFUL BARRIER RATHER THAN A BRIDGE TURKEY IS POSITIONED TO HELP CONTAIN SEVERAL TROUBLE SPOTS IN CENTRAL ASIA IT IS VYING WITH IRAN FOR INFLUENCE OVER THE ISLAMIC NATIONS THAT WERE PART OF THE SOVIET UNION A SUBSTANTIAL NUMBER OF STUDENTS FROM CENTRAL ASIA ARE BEING EDUCATED IN TURKEY UNDERSCORING TURKEY'S ROLE AS AN EXAMPLE FOR CENTRAL ASIA OF A MODERN SECULAR MUSLIM STATE MR CHRISTOPHER SAID THE US WOULD JOIN ANKARA IN DEVELOPING JOINT AID PROJECTS IN THE REGION ANKARA ALSO HAS WORKED WITH THE US AND RUSSIA TO TRY TO END WARFARE BETWEEN ARMENIA AND AZERBEIJAN AND TURKEY PLAYS A VITAL ROLE PROVIDING AIR BASES FROM WHICH US AND ALLIED AIRCRAFT PATROL NORTHERN IRAQ TO PROTECT ITS KURDISH POPULATION TURKEY ALSO HAS PUSHD TO PROTECT THE MUSLIMS IN BOSNIA PROVIDING F16 AIRCRAFT THAT THE ALLIES USE TO PATROL THE NOFLY ZONE OVER BOSNIA AT TURKEY'S SUGGESTION THE NATIONS THAT BORDER THE BLACK SEA HAVE FORMED THE BLACK SEA CONSORTIUM WHICH COULD BECOME A SIGNIFICANT REGIONAL TRADING BLOC ANKARA ALSO HAS PROPOSED A UNION OF TURKIC STATES THAT WOULD UNITE THE CENTRAL ASIAN REPUBLICS AT THE SAME TIME TURKEY FACES PRESSURES AT HOME LAST WEEK THE HEAD OF THE KURDISTAN WORKERS PARTY OR PKK A SEPARATIST GROUP THREATENED A RENEWED CAMPAIGN OF VIOLENCE THIS SUMMER SADDAM HUSSEIN'S ATTACKS ON IRAQI KURDS AFTER THE GULF WAR SWEPT OVER ONE MILLION REFUGEES INTO TURKEY AND THE DEATH OF MR OZAL A LEADER WHO ADVOCATED A STRONG INTERNATIONAL ROLE FOR TURKEY IS LIKELY TO TOUCH OFF AN INTERNAL DEBATE OVER HOW BROAD A REGIONAL ROLE ANKARA SHOULD PLAY AN EARLY SIGNAL WILL BE SENT LATER THIS MONTH WHEN TURKEY'S PARLIMENT MUST DECIDE WHETHER TO RENEW FOR ANOTHER SIX MONTHS THE ALLIES' USE OF ITS AIR BASES TO PATROL IRAQ ALTHOUGH US OFFICIALS EXPECT A RENEWAL SOME CONSERVATIVES IN PARLIAMENT STRONGLY OPPOSE IT CLAIMING THAT IT IS ERODING TURKEY'S SOVEREIGNTY AND IS FACILITATING CREATION OF A KURDISH STATE CURRENT NEGOTIATIONS OVER THE RENEWAL OF A BILATERAL SECURITY AND ECONOMIC AGREEMENT WITH THE US ALSO REFLECT CONFLICTING PRESSURES OF ANKARA'S QUEST FOR INDEPENDENCE AND ITS DEPENDENCE ON THE US TURKEY IS PUSHING FOR MORE THAN A DOZEN CHANGES IN THE ACCORD BUT IT WORRIES ABOUT THE JOB LOSS CAUSED BY THE SHRINKING US MILITARY PRESENCE US OFFICIALS SAY THERE NOW ARE THREE US MILITARY BASES IN TURKEY DOWN FROM 12 SEVERAL YEARS AGO A US OFFICIAL SAYS THAT AS A RESULT THE LEVERAGE THEY USED TO HAVE ISN'T THERE ANYMORE HOWEVER MR LESSER DISAGREES BECAUSE OF ITS LOCATION TURKEY IS IN A RATHER UNIQUE POSITION TO INFLUENCE US FREEDOM OF ACTION 9306140145 930614 WHO'S NEWS AMERICAN TELEPHONE & TELEGRAPH CO AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK RON J PONDER 50 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT AND CHIEF INFORMATION OFFICER A NEW POSITION AT THIS TELECOMMUNICATIONS CONCERN MR PONDER IS CURRENTLY EXECUTIVE VICE PRESIDENT AND CHIEF INFORMATION OFFICER AT SPRINT CORP IN KANSAS CITY MO AND PREVIOUSLY HAD BEEN CHIEF INFORMATION OFFICER AT FEDERAL EXPRESS CORP IN MEMPHIS TENN 9306140144 930614 FINANCING BUSINESS TRANS WORLD MUSIC CORP TRANS WORLD MUSIC CORP ALBANY NY RECEIVED A NEW 75 MILLION MULTIYEAR REVOLVING CREDIT FACILITY TO HELP FINANCE NEW STORE OPENINGS AND RELOCATIONS THE MUSIC AND VIDEO RETAILER SAID IT GOT THE CREDIT FACILITY FROM CHEMICAL BANK CHASE MANHATTAN BANK NATIONAL WESTMINSTER BANK USA AND NBD BANK 9306140143 930614 WHO'S NEWS PULITZER PUBLISHING CO PULITZER PUBLISHING CO ST LOUIS MICHAEL E PULITZER 63 YEARS OLD WAS ELECTED CHAIRMAN MR PULITZER WHO WILL CONTINUE TO SERVE AS PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDS HIS LATE BROTHER JOSEPH PULITZER JR AS CHAIRMAN IN ADDITION EMILY RAUH PULITZER WIDOW OF JOSEPH PULITZER JR WAS NAMED A DIRECTOR OF THE COMMUNICATIONS COMPANY 9306140142 930614 WHO'S NEWS CATERPILLAR INC CATERPILLAR INC PEORIA ILL DAVID R GOODE CHAIRMAN CHIEF EXECUTIVE OFFICER AND PRESIDENT OF NORFOLK SOUTHERN CORP AND PETER A MAGOWAN CHAIRMAN OF SAFEWAY INC WERE ELECTED DIRECTORS OF THIS MAKER OF CONSTRUCTION EQUIPMENT MR MAGOWAN ALSO IS PRESIDENT AND MANAGING GENERAL PARTNER OF THE SAN FRANCISCO GIANTS BASEBALL CLUB THE ELECTIONS INCREASE THE BOARD'S SIZE TO 12 MEMBERS 9306140141 930614 CREDIT RATING S&P RAISES CHASE RATINGS AFFECTING 67 BILLION DEBT NEW YORK CHASE MANHATTAN CORP'S DEBT RATINGS WERE UPGRADED BY STANDARD & POOR'S CORP TO SINGLEAMINUS WHICH CITED THE COMPANY'S RECENT SALE OF STOCK AND PLANS TO SHED BAD ASSETS ABOUT 67 BILLION IN DEBT IS AFFECTED CHASE MANHATTAN WHICH WAS RATED TRIPLEBPLUS SOLD 649 MILLION IN EQUITY LAST WEEK IN APRIL IT WROTE DOWN AROUND 2 BILLION IN PROBLEM COMMERCIAL REAL ESTATE THAT IT IS CURRENTLY IN THE PROCESS OF SELLING CAPITAL AND RESERVES ARE NOW IN LINE WITH OTHER SINGLEARATED MONEY CENTER BANKS THE PROPOSED ACCELERATED SALE OF RISKY REAL ESTATE LOANS ORIGINALLY VALUED AT 2 BILLION WILL SIGNIFICANTLY REDUCE COMMERCIAL REAL ESTATE EXPOSURE S&P SAID IN A STATEMENT S&P ALSO RAISED ITS RATINGS ON THE CDS BANK NOTES AND DEPOSIT NOTES OF CHASE MANHATTAN BANK TO SINGLEA FROM SINGLEAMINUS 9306140140 930614 WHO'S NEWS PENN TRAFFIC CO PENN TRAFFIC CO JOHNSTOWN PA SUSAN E ENGEL 46 YEARS OLD PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CHAMPION PRODUCTS INC A UNIT OF SARA LEE CORP WAS NAMED A DIRECTOR OF THIS CONCERN THAT OWNS AND OPERATES SUPERMARKETS AND OPERATES A WHOLESALE FOOD DISTRIBUTION BUSINESS AND A DISCOUNT GENERAL MERCHANDISE BUSINESS THE ACTION INCREASES THE BOARD TO NINE MEMBERS 9306140139 930614 WHO'S NEWS ALLIED IRISH BANKS PLC ALLIED IRISH BANKS PLC DUBLIN THE COMPANY SAID PETER D SUTHERLAND WHO WAS APPOINTED AS DIRECTORGENERAL OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE WILL RESIGN AS ITS CHAIRMAN EFFECTIVE AT THE END OF JUNE HE WILL BE SUCCEEDED BY JAMES P CULLITON 9306140138 930614 JACOBS TO SELL ORIOLES TEAM TO CINCINNATI INVESTORS FINANCIER ELI S JACOBS SAID HE REACHED AN AGREEMENT TO SELL THE BALTIMORE ORIOLES TO A CINCINNATI INVESTOR GROUP FOR 1413 MILLION MAKING IT THE HIGHEST BID EVER FOR A BASEBALL TEAM BUT THE FINAL PRICE COULD GO EVEN HIGHER MR JACOBS HAS FILED FOR BANKRUPTCY PROTECTION UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE AND THE COURT IS EXPECTED TO CONSIDER OTHER BIDS IN WHAT COULD AMOUNT TO AN AUCTION FOR THE TEAM IN MIDJULY THE BANKRUPTCY COURT HAS SAID RIVAL BIDS MUST TOP THE CINCINNATI OFFER BY 2 MILLION AMONG OTHER INTERESTED PARTIES IS AN INVESTMENT GROUP INCLUDING BESTSELLING AUTHOR TOM CLANCY THE CINCINNATI GROUP IS LED BY WILLIAM O DEWITT JR WHOSE FATHER WAS A LONGTIME BASEBALL EXECUTIVE AND INVESTOR IN THE CINCINNATI REDS AND MERCER REYNOLDS THE TWO MEN ARE PARTNERS IN THE CINCINNATI INVESTMENT FIRM OF REYNOLDS DEWITT & CO POTENTIAL BIDDERS MUST NOT ONLY TOP THE DEWITT OFFER BUT THEY WOULD HAVE TO PAY THE CINCINNATI GROUP AS MUCH AS 25 MILLION TO RECOVER EXPENSES INCURRED IN PREPARING THE THENLOSING OFFER WHATEVER OFFER IS APPROVED BY THE BANKRUPTCY COURT MUST THEN BE ACCEPTED BY MAJOR LEAGUE BASEBALL 9306140137 930614 WHO'S NEWS ISTITUTO PER LA RICOSTRUZIONE ISTITUTO PER LA RICOSTRUZIONE MILAN ITALY'S GIANT STATECONTROLLED INDUSTRIAL HOLDING CONCERN SAID IT APPOINTED ENRICO MICHELI AS DIRECTOR GENERAL SERVING UNDER NEW CHAIRMAN ROMANO PRODI MR MICHELI CURRENTLY IN CHARGE OF LABOR RELATIONS AT IRI WILL SUCCEED MICHELE TEDESCHI WHO HELD THE POST OF IRI'S MANAGING DIRECTOR AND DIRECTOR GENERAL MR TEDESCHI WAS RECENTLY APPOINTED MANAGING DIRECTOR OF IRI'S TELECOMMUNICATIONS UNIT SOCIETA FINANZIARIA TELEFONICA PER AZIONI 9306140136 930614 WHO'S NEWS COSTAIN GROUP PLC COSTAIN GROUP PLC LONDON THIS CONSTRUCTION COMPANY ELECTED SIR CHRISTOPHER BENSON AS ITS NEW CHAIRMAN HE SUCCEEDS PB SAWDY WHO HAS RETIRED 9306140135 930614 PACEMAKER SALESMAN ADMITS TO TAMPERING VIOLATING DRUG LAW SOUTH BEND IND CARDIAC PACEMAKER SALESMAN MICHAEL WALTON PLEADED GUILTY TO MAIL FRAUD AND TAMPERING WITH PACEMAKER LABELING AFTER TRIAL EVIDENCE SHOWED HIS COMPANIES LAVISHED TRIPS AND PROSTITUTES ON DOCTORS MR WALTON THE SUBJECT OF A PAGEONE ARTICLE IN THE WALL STREET JOURNAL IN SEPTEMBER 1991 ADMITTED VIOLATING THE FEDERAL FOOD AND DRUG LAW MR WALTON 44 YEARS OLD PLEADED GUILTY TO A TOTAL OF THREE CRIMINAL COUNTS ADMITTING THE TAMPERING SHOWED RECKLESS DISREGARD FOR PATIENT HEALTH WHILE THE PLEA AGREEMENT DIDN'T ADDRESS HIS DEALINGS WITH CARDIOLOGISTS AND SURGEONS DOCTORS AND FORMER WALTON EMPLOYEES TESTIFIED HIS COMPANIES SENT PHYSICIANS ON FREE TRIPS TO CONFERENCES IN HAWAII AND SUPPLIED SOME WITH PROSTITUTES AND THOUSANDS OF DOLLARS OF FREE TICKETS TO SPORTING EVENTS THIS CASE IS AN ATTEMPT TO SHOW ABUSES AMONG DOCTORS AND GET LEGISLATION TO GIVE THE US FOOD AND DRUG ADMINISTRATION REGULATORY POWER OVER HOSPITALS AND DOCTORS SAID MR WALTON'S DEFENSE LAWYER C KENNETH WILBER MR WALTON IS A CONVICTED RAPIST WHO STUDIED CARDIOLOGY WHILE SERVING HIS SENTENCE AT AN ILLINOIS PRISON DURING THE EARLY 1980S AFTER LEAVING THE PENITENTIARY HE SOLD HUNDREDS OF PACEMAKERS VALUED BY HIS ESTIMATE AT 6 MILLION PACEMAKERS WHICH SPEED UP SLUGGISH HEARTBEATS HAVE EXPIRATION DATES ON LABELS TO ENSURE THEIR STERILITY AND BATTERY LIFE PENALTIES FOR THE CRIMES TO WHICH MR WALTON PLEADED GUILTY INCLUDE A FINE OF AS MUCH AS 250000 AND IMPRISONMENT FOR AS LONG AS 10 YEARS 9306140134 930614 MARKETING & MEDIA ROLLBACK OF CABLE TV RATES IS DELAYED UNTIL FCC GETS FUNDS TO ENFORCE RULES BY MARY LU CARNEVALE STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PROMISED CUT IN CABLE TELEVISION RATES IS GOING TO HAVE TO WAIT UNTIL CONGRESS COMES UP WITH MONEY TO ENFORCE THE NEW REGULATIONS THE FEDERAL COMMUNICATIONS COMMISSION SAID IT WOULD HAVE TO DELAY THE ENFORCEMENT OF THE CABLE TELEVISION RATE RULES UNTIL OCT 1 AND CHAIRMAN JAMES QUELLO SAID THE AGENCY MAY NEED A FURTHER DELAY IN THE MEANTIME WHILE THE AGENCY WON'T BE ORDERING ANY RATE ROLLBACKS THE CURRENT FREEZE ON RATES WILL BE EXTENDED WE SIMPLY DON'T HAVE THE PEOPLE IN PLACE TO ADMINISTER THESE RULES MR QUELLO SAID IN AN INTERVIEW ONCE WE GET FUNDING FROM CONGRESS THE GOVERNMENT WILL HAVE TO RENT SPACE FURNISH IT GET COMPUTERS HIRE PEOPLE AND GET THEM IN PLACE AND GET THE THING RUNNING THE FCC HAS BEEN SEEKING ADDITIONAL FUNDS TO HANDLE AN EXPECTED FLOOD OF PAPERWORK FROM CABLE OPERATORS AND FROM CONSUMERS LEGISLATION THAT IS LIKELY TO PASS CONGRESS THIS SUMMER WOULD GIVE THE AGENCY AN ADDITIONAL 115 MILLION DURING THE CURRENT FISCAL YEAR THE NEW RULES CARRY OUT RATE PROVISIONS OF THE CABLE REREGULATION LAW THAT CONGRESS PASSED LAST YEAR THE FCC HAS PROMISED THAT THE RULES ORIGINALLY SCHEDULED TO GO INTO EFFECT NEXT MONDAY WILL LEAD TO A 10 CUT IN CABLE RATES NATIONWIDE WITH 75 OF THE NATION'S 11000 CABLE SYSTEMS REQUIRED TO REDUCE RATES IN ALL THE AGENCY FIGURES ROLLBACKS WILL TOTAL ABOUT 1 BILLION MR QUELLO SAID THE DELAY GIVES THE FCC A CHANCE TO IMPROVE THE RULES FOURTEEN PARTIES HE SAID HAVE ASKED THE AGENCY TO RECONSIDER THE RATE REGULATIONS AND SOME MAY CONTAIN GOOD SUGGESTIONS UNDER THE RULES REASONABLE RATES FOR CABLE SERVICE ARE BASED ON A FORMULA THAT TAKES INTO ACCOUNT RATES IN COMPETITIVE MARKETS INSTEAD OF ACCEPTING THE BENCHMARK RATES CABLE OPERATORS CAN OPT FOR CALCULATING THEIR RATES BASED ON THEIR ACTUAL COSTS OF PROVIDING SERVICE TO GET APPROVAL FOR COSTBASED RATES COMPANIES HAVE TO GIVE THE FCC DETAILED COST DATA THE FCC HAS YET TO DECIDE THE STANDARDS FOR COSTOFSERVICE PRICING AND CHAIRMAN QUELLO SAID THE AGENCY WILL SOON SEEK MORE PUBLIC COMMENT ON PROPOSED STANDARDS THE DELAY PROMPTED AN IMMEDIATE SCOLDING FROM REP EDWARD MARKEY D MASS CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE AFTER WAITING FOUR YEARS AND ENDURING MONOPOLY PRICING AND RATE GOUGING CONSUMERS WERE TOLD BY THE FCC ON APRIL 1 THAT RELIEF WAS IN SIGHT HE SAID NOW THESE RATE REDUCTIONS ARE BEING SNATCHED FROM THE HANDS OF CONSUMERS MR MARKEY ACKNOWLEDGED THE AGENCY'S LACK OF RESOURCES BUT SAID IT SHOULD HAVE BEGUN ENFORCING THE RULES FOR CABLE TV OPERATORS THAT ACCEPTED FCC BENCHMARK RATES CABLE TRADE GROUPS APPLAUDED THE FCC'S DECISION OPERATORS WHO HAVE MORE QUESTIONS THAN ANSWERS ABOUT THE FCC RATE REGULATIONS WILL BE RELIEVED TO LEARN OF THE DELAY SAID A SPOKESMAN FOR THE NATIONAL CABLE TELEVISION ASSOCIATION STEPHEN EFFROS HEAD OF THE COMMUNITY ANTENNA TELEVISION ASSOCIATION SAID THE RATE RULES WOULD HAVE CREATED SUCH CHAOS IN THE MARKETPLACE THAT THE COMMISSION BOWED TO REALITY UNDER THE RULES LOCAL FRANCHISING AUTHORITIES AUTHORIZED BY THE FCC WILL REGULATE RATES FOR BASIC CABLE TV SERVICE THE TIER OF SERVICE THAT INCLUDES OVERTHEAIR BROADCAST CHANNELS THE FCC WILL INVESTIGATE AND RESOLVE CONSUMERS' COMPLAINTS ABOUT RATES CHARGED FOR OTHER CABLE PROGRAMMING EXCEPT PREMIUM CHANNELS AND PAYPERVIEW SERVICES CABLE COMPANIES THAT FACE COMPETITION FROM ANOTHER MULTICHANNEL TV SERVICE ARE EXEMPT FROM REGULATION 9306140133 930614 TRUMP READIES SALES OF LOWRATED DEBT BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK HERE'S A SIGN OF INVESTORS' APPETITE FOR INCREASINGLY SPICY JUNK BONDS DONALD TRUMP IS GETTING READY TO JUMP BACK INTO THE MARKET WITH TWO NEW JUNK OFFERINGS AS EARLY AS THIS WEEK TWO RELATED TRUMPCONTROLLED COMPANIES PLAN TO SELL ABOUT 375 MILLION IN NEW JUNK NOTES SOME OF WHICH WILL BE RATED LOWER THAN THE DEBT THEY ARE REPLACING IT WILL BE MR TRUMP'S FIRST BOND SALE IN MORE THAN FOUR YEARS ACCORDING TO UNDERWRITER MERRILL LYNCH & CO MAKING THE OFFERINGS WILL BE TRUMP PLAZA FUNDING INC MORTGAGE NOTES AND TRUMP PLAZA HOLDING ASSOCIATES PAYMENTINKIND NOTES AND WARRANTS FOR MORE THE NEW DEBTS WILL BE SUPPORTED BY CASH FLOWS FROM THE TRUMP PLAZA CASINO IN ATLANTIC CITY NJ AFTER THE OFFERINGS TRUMP PLAZA WILL BECOME ONE OF THE MOST HIGHLY LEVERAGED PROPERTIES IN ATLANTIC CITY ACCORDING TO STANDARD & POOR'S CORP THE TRANSACTION WILL INCREASE TOTAL DEBT ON TRUMP PLAZA TO ABOUT 65 TIMES CASH FLOW FROM ABOUT 51 TIMES AT THE END OF LAST YEAR S&P SAYS THE MARKET AVERAGE IS ABOUT FOUR TIMES CASH FLOW WHAT'S MORE SEPARATE DOCUMENTS FOR EACH OFFERING INCLUDE 14 PAGES PACKED WITH DESCRIPTIONS OF RISK FACTORS CONSIDER FOR EXAMPLE THAT ANNUAL INTEREST EXPENSES WOULD BE 505 MILLION OR 187 MILLION MORE THAN LAST YEAR AND 525 MILLION OF THE MONEY RAISED WOULD GO TO PAY OFF MR TRUMP'S PERSONAL DEBTS SOUND ENTICING FOR A NUMBER OF INVESTORS THE ANSWER IS DEFINITELY YES AS WITH THE PAIN OF AN OLD INJURY SAYS MARGARET D PATEL WHO MANAGES FIXEDINCOME INVESTMENTS FOR BOSTON SECURITY COUNSELLORS IT'S HARD TO REMEMBER JUST HOW BADLY IT HURT WHEN MR TRUMP NEARLY WOUND UP IN BANKRUPTCY COURT A FEW YEARS AGO TODAY YOU TRY TO RECALL EXACTLY HOW THAT PAIN FELT BUT YOU CAN'T SHE SAYS LIKE ANY OTHER BOND MANAGER I EXPERIENCED PAIN IN 1991 BUT PSYCHOLOGICALLY I CAN'T IMAGINE NOT MAKING MONEY IN THE MARKET RIGHT NOW SO SHE IS CONSIDERING BUYING SOME OF THE NEW TRUMP MORTGAGE NOTES MERRILL LYNCH WILL BE THE LEAD UNDERWRITER FOR THE SALE OF 315 MILLION OF EIGHTYEAR MORTGAGE NOTES AND 60 MILLION OF 10YEAR PAYMENTINKIND OR PIK NOTES 25 MILLION OF WHICH WILL BE PURCHASED BY CREDITOR BANKS BOTH ISSUES ARE NONCALLABLE FOR FIVE YEARS RATINGS ARE SINGLEB3 FOR THE MORTGAGE NOTES AND CAA FOR THE PIKS BY MOODY'S INVESTORS SERVICE S&P RATES THE MORTGAGE NOTES SINGLEB AND THE PIKS TRIPLECPLUS ALL THE RATINGS ARE BELOW THE LOWEST INVESTMENTGRADE RATINGS OF BAA3 FROM MOODY'S AN TRIPLEBMINUS FROM S&P THE OTHER OFFERING IS OF UNITS EACH CONSISTING OF 5000 FACE AMOUNT OF PIK NOTES SECURED BY TRUMP PLAZA HOLDING ASSOCIATES' EQUITY INTEREST IN A PARTNERSHIP THAT OWNS THE CASINO AND A WARRANT TO GET 1000 MORE OF THE PIK NOTES THE PIKS ALLOW THE ISSUER TO MAKE INTEREST PAYMENTS WITH MORE NOTES RATHER THAN CASH HOLDERS WILL GET THE ADDITIONAL PIK NOTES IF CERTAIN CONDITIONS ARE MET SUCH AS A POSSIBLE STOCK OFFERING BY THE COMPANY PIKNOTE INVESTORS COULD EARN AS MUCH AS 1625 ANNUALLY OVER THE FIRST FIVE YEARS IF THE WARRANTS BEAR FRUIT ACCORDING TO MERRILL LYNCH BUT OTHER ANALYSTS SAY THE AVEGE ANNUAL RETURN INCLUDING WARRANT RETURNS COULD BE AS MUCH AS 15 PERCENTAGE POINTS LESS IF THE BONDS AREN'T CALLED AND THUS STAY OUTSTANDING FOR THE FULL 10 YEARS ANALYSTS ARE SAYING NICE THINGS ABOUT THE MORTGAGE BONDS PARTLY BECAUSE THEY WILL BE RANKED AS SENIOR DEBT YOU'RE LOOKING AT A LEVERAGED SITUATION BUT NOT TO THE POINT THAT IT'S OVERLEVERAGED SAYS ANNE K LORSUNG AN ANALYST AT DUFF & PHELPS/MCM ACCORDING TO MS LORSUNG THE YIELD ON THE TRUMP DEAL IS HIGHER THAN A SIMILAR MORTGAGE ISSUE BY GNF CORP A FINANCING AFFILIATE OF BALLY'S GRAND CASINO HOTEL IN ATLANTIC CITY NJ IN MARCH THE COMPANY OWNED BY BALLY MANUFACTURING CORP SOLD A 275 MILLION ISSUE OF 10YEAR FIRST MORTGAGE NOTES WITH A 10625 COUPON BETWEEN DECEMBER 1991 AND MARCH 1993 THE APPRAISED VALUE OF THE TRUMP PLAZA PROPERTY ROSE MORE THAN 70 MILLION TO 491 MILLION THE RECENT APPRAISAL IS BASED PARTLY ON ASSUMPTIONS THAT GENERAL CASINO REVENUE AND OPERATING EXPENSES WILL RISE 4 ANNUALLY FOR A DECADE IF THE DEAL GETS DONE AT A RELATIVELY LOW RATE IT WILL TELL YOU A LOT ABOUT WHERE THE MARKET IS SAYS DAVID FEINMAN A SENIOR VICE PRESIDENT AT JEFFERIES & CO AN INVESTMENT BANK IN LOS ANGELES INVESTORS ARE YIELD HOGS THESE DAYS 9306140132 930614 GE WILL REVAMP JET ENGINE UNIT CUTTING 1500 JOBS BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL ELECTRIC CO PLANS A WIDERANGING RESTRUCTURING OF ITS AIRCRAFT JET ENGINE UNIT IN THE FACE OF A SHRINKING DEFENSE MARKET AND WEAK AIRLINE INDUSTRY THE MOVE WHICH WILL INCLUDE ONE PLANT CLOSING AND MOSTLY PRODUCTION REALIGNMENTS WILL ELIMINATE 1500 JOBS THE LATEST EMPLOYMENT CUTBACK AT THE GE AIRCRAFT ENGINE DIVISION FOLLOWS A STRING OF LAYOFFS THERE OVER THE PAST TWO YEARS PROMPTED BY DETERIORATING MARKET CONDITIONS TODAY'S MARKET DEMANDS RAPID AND FUNDAMENTAL CHANGE ENGINE AND SPARE PARTS ORDERS ARE DOWN OUR CUSTOMERS FACE BRUTAL COST PRESSURES SAID CHARLES CHADWELL VICE PRESIDENT OF ENGINE PRODUCTION AND PROCUREMENT HE SAID THE PLANNED STREAMLINING OF PRODUCTION IS INTENDED TO CUT COSTS AND REDIRECT CRITICAL RESOURCES TOWARD FOCUSED FACTORY PRODUCTION THE ANNOUNCEMENT BY GE AIRCRAFT ENGINE WHICH POSTED SHARPLY LOWER FIRSTQUARTER EARNINGS FROM A YEAR EARLIER DIDN'T SURPRISE WALL STREET ANALYSTS UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY JETENGINE UNIT IS IN THE MIDST OF A MAJOR RESTRUCTURING INVOLVING PLANT CLOSINGS AND EXTENSIVE LAYOFFS ROLLSROYCE PLC THE OTHER MAJOR JET ENGINE MAKER ALSO HAS BEEN STREAMLINING OPERATIONS SOME ANALYSTS SAID THAT WHILE GE AND ITS COMPETITORS' ACTIONS WILL LOWER COSTS THEY MIGHT NOT RAISE PROFIT MARGINS EVERYONE HAS AMBITIOUS COSTCUTTING PROGRAMS AND THE COST HAS BECOME A MOVING TARGET SAID TASSOS PHILIPPAKOS AN ANALYST AT MOODY'S INVESTORS SERVICE INC EACH ONE WILL TRY TO OUTDO THE OTHER AS THEY COMPETE FOR THE SHRINKING MARKET HE SAID THAT IN ORDER TO WIN ENGINE AND SPARE PARTS ORDERS THE MANUFACTURERS MUST TRANSFER THE SAVINGS TO CUSTOMERS HE ESTIMATED THAT MILITARY JET ENGINE DELIVERIES ALREADY ARE DOWN 20 FROM THE PEAK IN 1991 AND ARE EXPECTED TO DECLINE ANOTHER 20 BY 1995 IN 1991 HE SAID THE ENGINE MAKERS SUPPLIED ENGINES FOR 847 COMMERCIAL AIRCRAFT AND THE NUMBER OF AIRCRAFT DELIVERED DECLINED TO ABOUT 650 FOR THIS YEAR WITH THE NUMBER EXPECTED TO DECLINE TO 450 TO 500 PLANES IN 1994 GE AIRCRAFT SAID IT WILL CLOSE ITS SPECIALTY PARTS MANUFACTURING CENTER IN SEATTLE IT WILL SHIFT PRODUCTION OF THE PLANT WHICH EMPLOYS ABOUT 200 PEOPLE TO OTHER LOCATIONS IN OTHER REALIGNMENTS UNDER THE RESTRUCTURING PLAN THE GE UNIT WILL MOVE PRODUCTION OF AIRFOILS FROM EVENDALE OHIO TO A FACILITY DEDICATED FOR THOSE COMPONENTS IN MADISONVILLE KY IT ALSO WILL SHIFT PRODUCTION OF CERTAIN MILITARY AND COMMERCIAL JET ENGINES FROM EVENDALE TO PLANTS IN DURHAM NC AND ARKANSAS CITY KAN GE AIRCRAFT SAID THE SPACE VACATED AT EVENDALE WILL BE USED TO RELOCATE OFFICES AND WAREHOUSES THAT NOW ARE ELSEWHERE THE INTENDED ACTIONS AT EVENDALE WHICH IS GE AIRCRAFT'S HEADQUARTERS AND ITS LARGEST PRODUCTION FACILITY WILL RESULT IN 1400 JOB ELIMINATIONS THE SHIFT OF PRODUCTION TO DURHAM WILL CREATE 110 JOBS THERE THESE JOB REDUCTIONS FOLLOW GE'S ANNOUNCEMENT IN MARCH THAT IT WOULD CUT 12 OF ITS 33000PERSON WORK FORCE THIS YEAR THE GE JET ENGINE UNIT HAD AS MANY AS 40000 EMPLOYEES IN THE LATE 1980S A GE SPOKESWOMAN FRIDAY SAID GE AIRCRAFT PLANS TO REDUCE ITS WORLDWIDE WORK FORCE TO ABOUT 27500 BY EARLY 1994 GE IS BASED IN FAIRFIELD CONN 9306140131 930614 GRACE RESUMES CONTROL OVER GROUP OF RESTAURANTS BY JAMES P MILLER STAFF REPORTER OF THE WALL STREET JOURNAL BOCA RATON FLA WR GRACE & CO REASSUMED CONTROL OF A CLOSELY HELD RESTAURANTCHAIN HOLDING CONCERN THAT IT SHED YEARS AGO IN A MOVE APPARENTLY AIMED AT CHOKING OFF A BID FOR THE COMPANY FROM FOODMAKER INC AND INVESTORS INCLUDING LEON BLACK'S APOLLO ADVISORS LP GRACE SAID THE MOVE GIVES IT INCREASED FLEXIBILITY IN PURSUING A COMPREHENSIVE RESTRUCTURING OF THE FINANCIALLY PRESSED RESTAURANT ENTERPRISES GROUP INC THAT IS MORE TO ITS LIKING THE MAKER OF SPECIALTY CHEMICALS AND HEALTHCARE PRODUCTS SOLD THE FORMER UNIT TO A MANAGEMENT GROUP IN 1986 AS PART OF A CORPORATE RECONFIGURATION THROUGH CERTAIN WARRANTS HOWEVER IT RETAINED A SIGNIFICANT MINORITY STAKE GRACE TOOK PAINS FRIDAY TO SAY THAT ITS PURCHASE OF ENOUGH SHARES TO GIVE IT AN UNDISCLOSED MAJORITY STAKE AND ITS SUBSEQUENT ELECTION OF A BOARD CONSISTING OF GRACE NOMINEES SHOULD IN NO WAY BE CONSTRUED TO MEAN THAT GRACE IS REENTERING THE RESTAURANT BUSINESS ITS CONTROL OF RESTAURANT ENTERPRISES GRACE SAID WILL BE A TEMPORARY MEASURE INTENDED ONLY TO MAXIMIZE THE VALUE OF ITS PRIOR INVESTMENT IN THE CHAIN IT DIDN'T SAY HOW MUCH IT PAID TO BOOST ITS HOLDING TO A MAJORITY POSITION RESTAURANT ENTERPRISES OPERATES 563 RESTAURANTS IN 23 STATES INCLUDING THE CARROWS COCO'S ALLIE'S AND EL TORITO CHAINS LAST YEAR BIG SPECIAL CHARGES CONTRIBUTED TO A NET LOSS OF 2149 MILLION ON REVENUE OF 9301 MILLION LAST MONTH SAN DIEGOBASED FOODMAKER DISCLOSED THAT IT ALONG WITH APOLLO ADVISORS AND OTHER INVESTORS HAD MADE AN UNSOLICITED BID FOR RESTAURANT ENTERPRISES A SPOKESWOMAN FOR FOODMAKER SAID OF GRACE'S ACTION WE DON'T BELIEVE IT CHANGES OUR AGREEMENT AND WE'LL CONTINUE TO PURSUE IT FOODMAKER HAS BEEN DEALING WITH AN UNOFFICIAL COMMITTEE OF BONDHOLDERS REPRESENTING A MAJORITY OF THE HOLDERS SHE SAID ADDING THAT OUR AGREEMENT IS WITH THE BONDHOLDERS AND IT IS OUR UNDERSTANDING THAT RESTAURANT ENTERPRISES IS IN DEFAULT ON THOSE BONDS SO THE BONDHOLDERS HAVE AN OPTION TO MOVE FORWARD 9306140130 930614 FINANCING BUSINESS BOEING CO BOEING CO SEATTLE SAID IT SOLD 300 MILLION OF 635 DEBENTURES DUE JUNE 15 2003 AT 9978 OF THEIR PRINCIPAL AMOUNT TO YIELD 638 THE DEBENTURES AREN'T REDEEMABLE UNTIL MATURITY THE COMMERCIALAIRCRAFT MAKER AND DEFENSE CONTRACTOR SAID IT WILL USE PROCEEDS FOR GENERAL CORPORATE PURPOSES GOLDMAN SACHS & CO UNDERWROTE THE OFFERING 9306140129 930614 MARKETING & MEDIA RESTAURANT GROUP IS TOLD TO ALTER ADS AGAINST RED LOBSTER LOS ANGELES A FEDERAL JUDGE ORDERED A WEST COAST COMPETITOR TO STOP REFERRING TO RED LOBSTER SEAFOOD RESTAURANTS AS RED LOSER IN TELEVISION COMMERCIALS GENERAL MILLS INC WHICH OWNS THE RED LOBSTER CHAIN HAD FILED A TRADEMARK INFRINGEMENT LAWSUIT AGAINST RESTAURANT ENTERPRISES GROUP INC OWNER OF COCO'S RESTAURANTS AND THE CHAIN'S AD AGENCY EVANS HARDY & YOUNG INC OVER THE ADS IN THE ADS THE LETTERS B AND T DISAPPEAR FROM RED LOBSTER WHILE AN ANNOUNCER CITES RESEARCH CONTENDING THAT CONSUMERS PREFERRED COCO'S SEAFOOD IN A TASTE TEST WE BELIEVE THEY'RE USING OUR TRADEMARK IN A DISPARAGING MANNER SAID A SPOKESMAN AT GENERAL MILLS'S MINNEAPOLIS HEADQUARTERS WE HAVE A 25YEAROLD REPUTATION FOR QUALITY SEAFOOD AND WE TAKE SERIOUSLY ANY COMPETITIVE ACTIVITY THAT SUGGESTS OTHERWISE ON FRIDAY A FEDERAL JUDGE HERE ORDERED RESTAURANT ENTERPRISES IRVINE CALIF TO DROP THE PART OF THE COMMERCIAL THAT REFERS TO RED LOSER THE ADS HAVE BEEN APPEARING ON SOUTHERN CALIFORNIA AND PHOENIX AND TUCSON ARIZ TV STATIONS FOR SEVERAL WEEKS RED LOBSTER GENERAL MILLS'S LARGEST RESTAURANT CHAIN HAS MORE THAN 581 OUTLETS IN THE US COCO'S HAS ABOUT 120 OUTLETS IN SOUTHERN CALIFORNIA AND ARIZONA THE CLAIMS WE MADE ARE PERFECTLY ACCEPTABLE SAID BARRY KRANTZ CHIEF OPERATING OFFICER OF RESTAURANT ENTERPRISES GROUP BEFORE THE COURT'S RULING WE'RE NOT CALLING THEIR RESTAURANTS LOSERS BUT SIMPLY THE LOSER OF THIS PARTICULAR PIECE OF RESEARCH HE SAID CITING A TEST IN WHICH COCO'S PAID ABOUT 200 PEOPLE TO DINE AT BOTH CHAINS AND REPORT WHOSE SEAFOOD THEY PREFERRED OFFICIALS OF EVANS HARDY A SANTA BARBARA CALIF AGENCY COULDN'T BE REACHED TO COMMENT 9306140128 930614 TECHNOLOGY BRIEF US SURGICAL CORP SECONDQUARTER LOSS SEEN PRICE COMPETITION CITED US SURGICAL CORP SAID IT EXPECTS TO REPORT A LOSS FOR THE SECOND QUARTER REFLECTING PRICE COMPETITION AND HIGHERTHANANTICIPATED INVENTORIES OF ITS PRODUCTS IN HOSPITAL STOREROOMS THE ANNOUNCEMENT WHICH ALSO SAID SALES WOULD BE LOWER THAN IN THE 1992 QUARTER CAME AFTER THE CLOSE OF TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE WHERE THE NORWALK CONN COMPANY'S SHARES FINISHED AT 2975 DOWN 150 THE FORECAST IS MORE BEARISH THAN THE COMPANY'S PREDICTION IN APRIL THAT THE QUARTER WOULD BE SHARPLY DOWN SOME ANALYSTS WERE EXPECTING THE COMPANY TO EKE OUT A SLIGHT PROFIT A YEAR EARLIER US SURGICAL HAD PROFIT OF 348 MILLION OR 58 CENTS A SHARE ON SALES OF 3048 MILLION ANALYSTS SAID A PRICE WAR WITH JOHNSON & JOHNSON'S ETHICON UNIT ON INSTRUMENTS FOR LAPAROSCOPIC OR MINIMALLY INVASIVE SURGERY IS TAKING A TOLL ON US SURGICAL IN APRIL THE COMPANY SAID A CHANGE IN THE DISTRIBUTION OF ITS PRODUCTS WOULD LEAD TO MUCH LOWER ORDERS FOR THE QUARTER 9306140127 930614 SEC MEMBER EXPECTS MOVE ON WRAPFEE' PROGRAMS WASHINGTON SECURITIES AND EXCHANGE COMMISSIONER RICHARD ROBERTS INDICATED THAT HE EXPECTS THE AGENCY TO MOVE SOON TO CLARIFY RULES GOVERNING SOCALLED WRAPFEE PROGRAMS THESE PROGRAMS ARE SPONSORED BY BROKERDEALERS WHO WRAP TOGETHER ASSETMANAGEMENT FINANCIALPLANNING AND BROKERAGE SERVICES FOR ONE FEE WITH PORTFOLIO MANAGERS PROVIDING THE ACTUAL ASSET MANAGEMENT WRAPFEE PROGRAMS HAVE ALREADY ATTRACTED BETWEEN 80 BILLION AND 90 BILLION IN ASSETS AND APPEAR TO BE GROWING AT A STEADY PACE MR ROBERTS SAID IN A SPEECH OVER THE WEEKEND ON ANOTHER FRONT MR ROBERTS SAID THAT THE SEC'S INQUIRY INTO POLITICAL CONTRIBUTIONS AND OTHER PAYMENTS BY UNDERWRITERS IN CONNECTION WITH MUNICIPAL BOND OFFERINGS IS JUST BEGINNING AND THAT IT'S MUCH TOO EARLY TO KNOW WHETHER ANY FEDERAL SECURITIES LAW VIOLATIONS HAVE OCCURRED MUCH LESS THE EXTENT OF THE PRACTICES IN QUESTION BUT HE ADDED I DO ANTICIPATE THAT SOME ENFORCEMENT ACTIVITY WILL BE GENERATED FROM THE MUNICIPAL BOND AREA MR ROBERTS SAID THAT THE SEC SHOULD PROVIDE GREATER GUIDANCE ON WRAPFEE PROGRAMS AND THAT THERE MAY BE SOME REGULATORY CHANGES NECESSARY AS WELL INCLUDING AMENDMENTS TO REQUIRE SPECIFIC DISCLOSURE ABOUT WRAP ACCOUNTS 9306140126 930614 TECHNOLOGY IBM PLANS TO UNVEIL THREE SMALL LIGHT PERSONAL COMPUTERS ARMONK NY INTERNATIONAL BUSINESS MACHINES CORP PLANS TO ANNOUNCE THREE NEW PERSONALCOMPUTER PRODUCTS TUESDAY THAT FALL INTO THE CATEGORIES OF SMALLER LIGHTER AND MORE EFFICIENTAND IN SOME CASES FASTER AFTER ONE YEAR OF DEVELOPMENT THE COMPUTER MAKER WILL UNVEIL ITS GREEN PC SO CALLED BECAUSE IT MEETS NEW ENERGYUSE GUIDELINES THAT THE ENVIRONMENTAL PROTECTION AGENCY IS EXPECTED ANNOUNCE LATER THIS WEEK EVEN MORE APPEALING FOR USERS HOWEVER MIGHT BE THE COMPUTER'S DESIGN IT TAKES UP MINIMAL SPACE ON A DESK AND HAS A PORTABLE HARD DISK WHICH HOLDS THE COMPUTER'S OPERATING SYSTEM AS WELL AS A USER'S FILES THE TWO OTHER PRODUCTS FIT INTO IBM'S THINKPAD SERIES OF PORTABLE COMPUTERS ONE IS A SUBNOTEBOOK THAT WEIGHS LESS THAN FOUR POUNDS AND ACCORDING TO IBM PERFORMS MORE DESKTOPPC FUNCTIONS AT HIGHER SPEEDS THAN OTHER SIMILAR PRODUCTS IBM SAID IT WILL COMPETE DIRECTLY WITH THE RECENTLY RELEASED OMNIBOOK 300 FROM HEWLETTPACKARD CO THE SECOND IS AN INTERMEDIATE MODEL OF IBM'S HOTSELLING THINKPAD ALL THE PRODUCTS MAKE USE OF NEW TECHNOLOGY KNOWN AS PCMCIA CARDS FAT CREDITCARDSIZED DEVICES WITH COMPUTER CHIPS SEALED INSIDE THAT CAN BE POPPED INTO AND OUT OF A COMPUTER ALLOWING USERS TO TRANSFER THE BRAINS OF A PC FROM MACHINE TO MACHINE THE CHIPS ARE ALSO DESIGNED TO BE ENERGY EFFICIENT THE ENTIRE GREEN PC INCLUDING THE SCREEN DRAWS 60 WATTS OF ENERGY A TYPICAL TRADITIONAL PC DRAWS 150 WATTS IBM DIDN'T DISCLOSE PRICES FOR THE PRODUCTS SAYING ONLY THAT THEY WILL BE COMPETITIVE WITH OTHERS ON THE MARKET 9306140124 930614 TECHNOLOGY COURT OVERTURNS INJUNCTION AGAINST SMALL INTEL RIVAL WASHINGTON THE US COURT OF APPEALS DEALT INTEL CORP A SETBACK IN ITS AGGRESSIVE LEGAL FIGHT AGAINST SEMICONDUCTOR COMPETITORS THE APPEALS COURT OVERTURNED A LOWER COURT'S RULING IMPOSING A PRELIMINARY INJUNCTION AGAINST ULSI SYSTEMS INC A SMALL CLOSELY HELD CHIP MAKER THAT INTEL HAD SUED OVER PATENT INFRINGEMENT THE APPEALS COURT SAID THAT THE FEDERAL COURT IN PORTLAND ORE CLEARLY ERRED IN CONCLUDING THAT INTEL HAD A REASONABLE CHANCE OF PREVAILING AT TRIAL THE LOWER COURT HAD CITED THAT CONCLUSION AS AN IMPORTANT REASON FOR GRANTING A PRELIMINARY INJUNCTION IN INTEL'S FAVOR INTEL AND ULSI SETTLED THE CASE IN MAY BUT THE RULING IF IT STANDS WILL DIMINISH THE AMOUNT OF MONEY ULSI WILL PAY INTEL UNDER TERMS OF THE SETTLEMENT MOREOVER THE RULING MAY SIGNAL THAT INTEL COULD FACE TROUBLE IN A SIMILAR IT BROUGHT AGAINST CYRIX CORP RICHARDSON TEXAS ANOTHER CHIP MAKER THAT INTEL HAS SUED ALLEGING COPYRIGHT INFRINGEMENT AN INTEL SPOKESMAN SAID THE COMPANY HADN'T SEEN THE RULING AND COULDN'T COMMENT ULSI HAILED THE DECISION AS A VICTORY BUT LAMENTED THAT IT DIDN'T COME SOONER THE CASE HAS BEEN LINGERING FOR FOUR YEARS WHEN ULSI SETTLED IT IN MAY THE CASE HAD ALREADY BEEN PENDING BEFORE THE APPEALS COURT FOR NEARLY A YEAR 9306140123 930614 TUPPERWARE UNIT OF PREMARK TO EARN PROFIT IN 2ND PERIOD DEERFIELD ILL PREMARK INTERNATIONAL INC SAID ITS ONCETROUBLED TUPPERWARE US UNIT IS RETURNING TO PROFITABILITY FASTER THAN WE ANTICIPATED AS A RESULT OF STRENGTHENING SALES AND LOWER COSTS TUPPERWARE US WILL REPORT A PROFIT IN THE SECOND QUARTER THE COMPANY SAID AND AS A RESULT WILL ABOUT BREAK EVEN FOR THE FIRST HALF PREMARK A MAKER OF CONSUMER AND RESTAURANT SUPPLY PRODUCTS SAID ITS OVERALL SECONDQUARTER NET WILL BE UP SIGNIFICANTLY FROM THE 294 MILLION OR 89 CENTS A SHARE THAT IT REPORTED IN THE YEAREARLIER PERIOD AND SHOULD BE NEAR THE HIGHER END OF LEADING ANALYST ESTIMATES THE COMPANY HAD BEEN EXPECTED TO REPORT EARNINGS IN THE RANGE OF 112 A SHARE WITH THE HIGHEST PUBLICLY AVAILABLE PROJECTION 123 A SHARE PROBLEMS WITH PREMARK'S DOMESTIC TUPPERWARE OPERATION DRAGGED DOWN THE YEARAGO PERIOD'S RESULTS IT HAS BEEN HURT BY INCREASED COMPETITION FROM CONVENTIONAL RETAIL OUTLETS AND BY CHANGING DEMOGRAPHICS THAT REDUCED THE NUMBER OF WOMEN WHO COULD HOST OR ATTEND THE TUPPERWARE PARTIES AT WHICH THE PRODUCT WAS TRADITIONALLY SOLD AFTER COSTCUTTING EFFORTS FAILED TO STEM THE LOSSES THE COMPANY LAST YEAR TOOK A THIRDQUARTER 129 MILLION CHARGE TO CLOSE A TENNESSEE FACTORY AND WRITE DOWN CERTAIN OTHER ASSETS ON FRIDAY PREMARK SAID IT HAS INCREASED THE SIZE OF THE US UNIT'S SALES FORCE WITH GREATER EMPHASIS ON RECRUITING AND WE'RE USING PROMOTIONS MORE EFFECTIVELY THOSE MOVES SHOULD INCREASE SECONDQUARTER SALES BY ABOUT 10 PREMARK SAID THE HIGHER VOLUME ALONG WITH SAVINGS FROM COSTCUTTING UNDERTAKEN LAST YEAR WILL RESULT IN A SECONDQUARTER PROFIT FOR TUPPERWARE IT SAID WHILE LONGER TERM CHALLENGES REMAIN OUR RECENT PERFORMANCE IS ENCOURAGING THE COMPANY SAID 9306140122 930614 BUSINESS BRIEF FORD REDUCES PRICES ON LARGE SEDANS VALUE' PRICING TREND REPLACES REBATES DEARBORN MICH THE AUTO INDUSTRY'S VALUE PRICING CRAZE EXPANDED AS FORD MOTOR CO BOWED TO CONSUMER DEMAND FOR LOWER PRICES FORD REDUCED PRICES BY AS MUCH AS 155 LAST WEEK ON ITS BIG FORD CROWN VICTORIA AND MERCURY GRAND MARQUIS SEDANS APPARENTLY REACTING TO THE SUCCESS OF HEAVILY ADVERTISED VALUE PRICING DEALS ON LARGE CARS MADE BY GENERAL MOTORS CORP UNDER VALUE PRICING AUTO MAKERS OFFER SEVERAL OPTIONS AS STANDARD EQUIPMENT WHILE CUTTING A CAR'S PRICE FORD'S ACTION WHICH CAME ON THE HEELS OF PRICE INCREASES FOR OTHER MODELS HIGHLIGHTED THE GROWING POPULARITY OF PRICE CUTS AS A SUBSTITUTE FOR THE COMPLEX REBATE DEALS THAT WERE THE HALLMARK OF AUTOMOTIVE MARKETING DURING THE LAST DECADE GM LED BY THE SUCCESS OF THE VALUE PRICING IN ITS SATURN SMALLCAR DIVISION IS PUSHING SIMILAR STRATEGIES IN ITS OTHER DIVISIONS IN A CAMPAIGN TO STOP THE SLIDE OF ITS MARKET SHARE FORD NOW HAS CUT PRICES ON MODELS IN THREE MAJOR SEGMENTS COMPACT CARS MIDSIZE COUPES AND LARGE SEDANS CHRYSLER CORP HAS USED THE STRATEGY TO BOOST SALES OF MINIVANS AND JEEP CHEROKEES FORD REDUCED THE PRICE OF ITS STANDARD CROWN VICTORIA BY 3304 OR 155 TO 17945 THE PRICE OF THE CROWN VICTORIA'S SPECIAL VALUE LX MODEL WHICH CARRIES MORE OPTIONS AS STANDARD EQUIPMENT WAS CUT 3461 OR 148 TO 19895 A VALUEEQUIPPED MERCURY GRAND MARQUIS' GS MODEL NOW SELLS FOR 19990 A REDUCTION OF 3615 OR 153 THE BETTEREQUIPPED LS MODEL SELLS FOR 20850 A REDUCTION OF 3552 OR 146 THE VALUE MODELS INCLUDE AS STANDARD EQUIPMENT OPTIONS SUCH AS AIR CONDITIONING POWER WINDOWS POWER DOOR LOCKS AND REAR DEFROSTER FORD CLEARLY WOULD RATHER NOT MAKE SUCH DEEP PRICE CONCESSIONS AT A TIME WHEN ITS NORTH AMERICAN VEHICLE PROFITS ARE DISAPPOINTING SOME WALL STREET ANALYSTS BUT FORD IS DISCOVERING THAT CUSTOMERS IN THE FULLSIZE SEDAN SEGMENT MANY OF WHOM ARE ELDERLY ARE PARTICULARLY RESISTANT TO PRICE HIKES DEALERS APPLAUDED THE PRICE CUTS SALES OF THE 1993 GRAND MARQUIS WERE OFF 15 THROUGH THE FIRST EIGHT MONTHS OF THE MODEL YEAR FORD SAID SALES OF THE CROWN VICTORIA WERE UP 19 DURING THE PERIOD HOWEVER A VALUE PRICING STRATEGY HELPED BOOST SALES OF ITS 1993 FORD THUNDERBIRD BY 46 DURING THE SAME PERIOD 9306140121 930614 WHO'S NEWS BOONTON ELECTRONICS CORP BOONTON ELECTRONICS CORP RANDOLPH NJ JOSEPH G GILLESPIE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS ELECTRONICS TEST INSTRUMENTS PRODUCER RESIGNED LATE FRIDAY AND HIS RESPONSIBILITIES WILL BE TAKEN OVER TEMPORARILY BY A FIVEMEMBER MANAGEMENT TEAM THE COMPANY SAID BOONTON WHICH GAVE NO REASON FOR MR GILLESPIE'S DEPARTURE SAID ITS BOARD SET UP A TEAM TO FIND HIS SUCCESSOR 9306140120 930614 FED CHIEF SEES NO THREAT FROM MONEYSUPPLY PACE WASHINGTON FEDERAL RESERVE CHAIRMAN ALAN GREENSPAN SAID THE FAILURE OF THE MONEY SUPPLY TO GROW AS FAST AS THE FED INTENDED DOES NOT POSE A THREAT TO THE ECONOMIC EXPANSION OR TO CONTINUED EMPLOYMENT GAINS RESPONDING TO A LETTER FROM HENRY GONZALEZ D TEXAS CHAIRMAN OF THE HOUSE BANKING COMMITTEE AND A PERSISTENT CRITIC OF THE FED MR GREENSPAN SAID THE LINK BETWEEN THE ECONOMY AND THE MONEY SUPPLY IS INCREASINGLY SUBJECT TO UNUSUAL AND UNPREDICTABLE DISTORTIONS THE FED CHAIRMAN TERMED DISAPPOINTING A RECENT REPORT THAT THE ECONOMY GREW AT AN ANNUAL RATE OF ONLY 09 IN THE FIRST QUARTER BUT NOTED THAT DESPITE THE MEAGER PACE THERE WAS A PICKUP IN JOB GROWTH AND A DECLINE IN THE UNEMPLOYMENT RATE THE FED'S STATED GOAL IS TO INCREASE THE MOST IMPORTANT MEASURE OF THE MONEY SUPPLY 2 TO 6 THIS YEAR BUT THE MONEY SUPPLY HAS ACTUALLY BEEN SHRINKING OVER THE PAST SEVERAL MONTHS 9306140119 930614 INTERNATIONAL ODDS OF REFORM IN JAPAN SEEM TO LENGTHEN BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO IS JAPAN'S HOT POTATO OF POLITICAL REFORM ABOUT TO BE DROPPED YET AGAIN LESS THAN 10 MONTHS AFTER SCANDAL TRIGGERED A WIDESPREAD CAMPAIGN TO OVERHAUL JAPAN'S OFTENCORRUPT LEGISLATIVE SYSTEM THE ODDS ARE GROWING THAT THIS SESSION OF JAPAN'S DIET WILL CLOSE WITHOUT HAVING FOUND A WAY TO MAKE REFORM A REALITY OVER THE WEEKEND A NUMBER OF TOP OFFICIALS IN THE RULING LIBERAL DEMOCRATIC PARTY URGED SHELVING CONSIDERATION OF REFORM PROPOSALS IN THE CURRENT PARLIAMENTARY SESSION SET TO END JUNE 20 SEVERAL NEWS REPORTS DECLARED THE REFORM BILLS FINISHED POLITICAL ANALYSTS SAID THESE POLITICIANS WILL LIKELY PREVAIL AND THAT THEIR MOVE WOULD EFFECTIVELY KILL ANY CHANCE OF MEANINGFUL CHANGE IN JAPAN'S POLITICAL SYSTEM IN THE FORESEEABLE FUTURE AFTER PREVIOUS SCANDALS THE LDP WAS ABLE TO QUASH REFORM BY DELAYING DELIBERATIONS UNTIL LONG AFTER PUBLIC FUROR HAD DIED TO BE SURE A NUMBER OF FACTORS COULD REINVIGORATE THE CAMPAIGN DURING THE NEXT WEEK SEVERAL POLITICAL FORCES PARTICULARLY MAVERICK REFORMERS IN THE PARTY COULD REGAIN THE MOMENTUM AND PUBLIC SENTIMENT WHICH DROVE THE REFORM CAMPAIGN TO BEGIN WITH COULD RISE AGAIN AND MAKE IT POLITICALLY IMPOSSIBLE FOR THE DIET NOT TO DO SOMETHING THIS SESSION PRIME MINISTER KIICHI MIYAZAWA WHO HAS OPENLY URGED REFORM IN RECENT WEEKS HAS YET TO COMMENT PUBLICLY ON THE WEEKEND DEVELOPMENTS AND COULD RALLY HIS PARTY TO OVERCOME HIS EMERGING OPPOSITION SUPPORTERS OF REFORM WANT TO SCRAP JAPAN'S EXISTING ELECTORAL SYSTEM WHICH SENDS SEVERAL MEMBERS FROM EACH DISTRICT TO THE NATIONAL DIET THAT OFTEN FORCES MEMBERS OF THE SAME PARTY TO RUN AGAINST EACH OTHER AND CRITICS SAY RAISES THE COSTS OF RUNNING FOR ELECTION AND DISCOURAGES CANDIDATES FROM DEBATING ISSUES SOME REFORMERS SUPPORT ELECTING ONLY ONE REPRESENTATIVE FROM EACH DISTRICT AS IN US CONGRESSIONAL ELECTIONS THE CURRENT REFORM PUSH STARTED LAST AUGUST WHEN LDP POWER BROKER SHIN KANEMARU ADMITTED TAKING ILLEGAL CAMPAIGN CONTRIBUTIONS FROM A PARCEL DELIVERY COMPANY VOTER OUTRAGE FORCED MR KANEMARU TO LEAVE POLITICS TWO MONTHS LATER IN MARCH MR KANEMARU WAS ARRESTED FOR ALLEGEDLY EVADING TAXES ON BILLIONS OF YEN OF HIDDEN CAMPAIGN CONTRIBUTIONS PROSECUTORS HAULED STACKS OF CASH AND GOLD BARS FROM MR KANEMARU'S HOMES AND OFFICES AND HE IS SCHEDULED TO GO ON TRIAL NEXT MONTH 9306140118 930614 FASB TO FORCE NONPROFITS TO KEEP STANDARD BOOKS NEW YORK THE FINANCIAL ACCOUNTING STANDARDS BOARD ON WEDNESDAY WILL ISSUE CONTROVERSIAL RULES FORCING NONPROFITS TO BOOK CERTAIN DONATION PLEDGES AS ASSETS AND TO PROVIDE MORE STANDARDIZED FINANCIAL DATA FOR DONORS AND CREDITORS SOME NONPROFITS SUCH AS COLLEGES AND MUSEUMS HAVE OPPOSED THE PLEDGES RULE BECAUSE THEY SAY IT WILL MAKE THEM SEEM HEALTHIER FINANCIALLY THAN THEY REALLY ARE CRIMPING FUTURE DONATIONS OTHERS HAVE OPPOSED THE NEW RULES ON COMPARABLE DATA AS BEING TOO COMPLEX CONFUSING AND COSTLY TO IMPLEMENT THE RULES WILL BE EFFECTIVE STARTING WITH 1995 REPORTS FOR LARGER NONPROFITS AND IN 1996 FOR NONPROFITS THAT HAVE ASSETS UNDER 5 MILLION AND ANNUAL EXPENSES UNDER 1 MILLION THE RULES ALSO COVER OTHER NONPROFITS SUCH AS HOSPITALS CHARITIES AND FOUNDATIONS RONALD BOSSIO AN FASB PROJECT MANAGER SAID THE RULES ARE NEEDED BECAUSE FINANCIAL REPORTING BY NONPROFITS CURRENTLY IS ALL OVER THE MAP MAKING IT DIFFICULT TO COMPARE SIMILAR ORGANIZATIONS 9306140117 930614 TECHNOLOGY MICROSOFT MOVES TO ENTER MARKET FOR UNIX SOFTWARE BY G PASCAL ZACHARY STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP IS MOVING TO BLUNT AN EDGE HELD BY RIVALS LOTUS DEVELOPMENT CORP AND WORDPERFECT CORP IN THE GROWING MARKET FOR UNIX SOFTWARE MICROSOFT UNLIKE LOTUS AND WORDPERFECT HAS REFUSED TO ADAPT ITS WORDPROCESSING AND OTHER APPLICATIONS TO THE MANY VARIETIES OF UNIX SAYING DEMAND FOR UNIX PROGRAMS IS TOO SMALL AND FRAGMENTED BUT THE COMPANY WILL ANNOUNCE TODAY THAT IT PLANS TO REACH THE UNIX MARKET THROUGH A PROGRAM SUPPLIED BY QUORUM SOFTWARE SYSTEMS INC A CLOSELY HELD CONCERN IN MENLO PARK CALIF WE CAN'T COMPETE FOR A CERTAIN CLASS OF BUSINESS BECAUSE WE DON'T HAVE UNIX VERSIONS DALE CHRISTENSEN A MICROSOFT PRODUCT MANAGER SAID THIS RELATIONSHIP WITH QUOROM SOLVES THAT PROBLEM QOUROM'S SOFTWARE MAKES IT POSSIBLE TO RUN APPLICATIONS WRITTEN FOR APPLE COMPUTER INC'S MACINTOSH COMPUTERS ON UNIX COMPUTERS MADE BY SUN MICROSYSTEMS INC AND SILICON GRAPHICS INC UNIX REFERS TO A NUMBER OF CLOSELY RELATED OPERATING SYSTEMS OR PROGRAMS THAT CONTROL THE BASIC OPERATIONS OF A COMPUTER UNIX USUALLY CONTROLS A CLASS OF HIGHPOWERED COMPUTERS CALLED WORKSTATIONS WHILE WINDOWS AND MACINTOSH SOFTWARE IS DESIGNED FOR PERSONAL COMPUTERS IN MOVING TO GET ITS APPLICATIONS ONTO UNIX SYSTEMS MICROSOFT IS FOLLOWING A TREND RECENTLY SUN MICROSYSTEMS SAID IT WILL INTRODUCE SOFTWARE THAT ALLOWS WINDOWS PROGRAMS ORIGINALLY DESIGNED TO RUN ON PERSONAL COMPUTERS OUTFITTED WITH INTEL CORP CHIPS AND MICROSOFT OPERATING SYSTEMS TO RUN ON ITS OWN UNIX COMPUTERS NOVELL INC'S UNIX SYSTEM LABORATORIES ALSO PLANS TO OFFER WAYS TO RUN BOTH WINDOWS AND MACINTOSH PROGRAMS ON UNIX COMPUTERS AND QUORUM PLANS TO SHIP ADDITIONAL PRODUCTS LATER THIS YEAR AND NEXT YEAR THAT MAKE IT POSSIBLE FOR MACINTOSH APPLICATIONS MADE BY MICROSOFT AND OTHER SOFTWARE COMPANIES TO RUN ON FUTURE VERSIONS OF MICROSOFT'S WINDOWS INCLUDING NT THE RUSH TO FIND WAYS TO GET WINDOWS AND MACINTOSH APPLICATIONS TO RUN ON UNIX COMPUTERS IS PROOF THAT UNIX IS BECOMING THE ULTIMATE PLATFORM SAID ROEL PIEPER NOVELL'S TOP UNIX EXECUTIVE MICROSOFT'S DECISION TO JOIN THE CROWD COULD BACKFIRE MR PIEPER ADDED IT LOOKS LIKE A HEDGE AGAINST THE POSSIBILITY THAT WINDOWS NT WHICH IS POSITIONED AS AN ALTERNATIVE TO UNIX WON'T SUCCEED HE SAID 9306140116 930614 PHYSICIANS LIKE WHAT THEY HEAR FROM HILLARY CLINTON LEADER OF HEALTH REFORM RAILS AGAINST INSURERS PROMISING A DOCTORFRIENDLY SYSTEM BY GEORGE ANDERS AND HILARY STOUT STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO HILLARY RODHAM CLINTON COURTED THE AMERICAN MEDICAL ASSOCIATION IN A BID TO WIN DOCTORS' SUPPORT FOR THE WHITE HOUSE HEALTH PLAN BUT TURNED UP THE HEAT ON THE INSURANCE INDUSTRY ADDRESSING 2000 DELEGATES TO THE AMA'S ANNUAL MEETING HERE THE FIRST LADY PROMISED DOCTORS A SYSTEM THAT WOULD STRIP AWAY BUREAUCRACY REFORM MALPRACTICE LAWS AND ENSURE PATIENTS THEIR CHOICE OF HEALTH PLAN IN HER MOST POINTED REMARKS MRS CLINTON ATTACKED MICROMANAGEMENT OF DOCTORS BY INSURANCE COMPANIES SIDING UNEQUIVOCALLY WITH PHYSICIANS SHE RAILED AGAINST INSURERS' COMMON REQUIREMENT THAT DOCTORS SEEK APPROVAL FOR COSTLY TREATMENTS AHEAD OF TIME INSTEAD OF BEING TRUSTED FOR YOUR EXPERTISE MRS CLINTON SAID YOU ARE EXPECTED TO CALL AN 800 NUMBER AND GET APPROVAL FOR MEDICAL PROCEDURES FROM A TOTAL STRANGER DOCTORS REPEATEDLY APPLAUDED HER REMARKS MANY SAID AFTERWARD THAT SHE HAD DONE A GREAT DEAL TO RELIEVE THEIR EARLIER SKEPTICISM ABOUT THE ADMINISTRATION'S PLANS WE THOUGHT SHE'D BRING AN OLIVE BRANCH SAID JEROME MELCHIOR A UROLOGIST FROM VINCENNES IND BUT SHE BROUGHT THE WHOLE TREE THE 290000MEMBER AMA IS ONE OF THE MOST POWERFUL INTEREST GROUPS IN HEALTH CARE OVER THE PAST 25 YEARS IT HAS PLAYED A MAJOR ROLE IN RESHAPING OR KILLING VARIOUS HEALTHCARE REFORM PLANS BECAUSE MANY CURRENT REFORM PROPOSALS COULD LIMIT DOCTORS' INCOME OR AUTONOMY THE AMA IS WIDELY SEEN AS WARY OF SWEEPING CHANGE EVEN THOUGH THE DOCTORS' GROUP SUPPORTS UNIVERSAL COVERAGE FOR ALL AMERICANS JUST 2 1/2 WEEKS AGO MRS CLINTON APPEARED TO BE GIRDING FOR A SHOWDOWN WITH THE MEDICAL ESTABLISHMENT IN A SPEECH TO THE SERVICE EMPLOYEES INTERNATIONAL UNION SHE LAMBASTED PRICE GOUGING COST SHIFTING AND UNCONSCIONABLE PROFITEERING IN MEDICINE YESTERDAY HOWEVER MRS CLINTON WHO HEADS THE WHITE HOUSE EFFORT TO OVERHAUL THE HEALTH CARE SYSTEM REPEATEDLY EXPRESSED RESPECT FOR DOCTORS LET'S CELEBRATE YOUR PROFESSION BY IMPROVING HEALTH CARE SHE TOLD HER AUDIENCE SHE CALLED MEDICINE THE MOST REWARDING PROFESSION THERE IS AND SHE LACED HER SPEECH WITH SYMPATHETIC ANECDOTES ABOUT DOCTORS' EVERYDAY WORK BY CONTRAST MRS CLINTON BERATED INSURERS AND THE GOVERNMENT FOR SECONDGUESSING MEDICAL DECISIONS SHE SAID IT IS AND REMAINS A MYSTERY TO ME HOW A PERSON SITTING AT A COMPUTER IN SOME AIRCONDITIONED OFFICE THOUSANDS OF MILES AWAY CAN MAKE A JUDGMENT ABOUT WHAT SHOULD OR SHOULDN'T HAPPEN AT A PATIENT'S BEDSIDE MRS CLINTON DREW SOME OF HER LOUDEST APPLAUSE WHEN SHE CONTINUED THERE IS NO MASTER CHECKLIST THAT COULD BE ADMINISTERED BY SOME FACELESS BUREAUCRAT TELLING YOU WHAT YOU NEED TO DO ON AN HOURLY BASIS FOR YOUR PATIENTS AND FRANKLY I WOULDN'T WANT TO BE ONE OF YOUR PATIENTS IF THERE WERE WHILE MRS CLINTON SCORED BIG POINTS BY FOCUSING ON DOCTORS' FRUSTRATIONS WITH BUREAUCRACY SHE GLOSSED OVER SEVERAL EQUALLY PRESSING ISSUES THE FIRST LADY DIDN'T SAY ANYTHING ABOUT HOW THE WHITE HOUSE PLAN WILL BE FINANCED OR WHEN IT WILL BE LAUNCHED SHE ALSO OFFERED FEW SPECIFICS ABOUT HOW THE ADMINISTRATION PLANS TO REIN IN MEDICAL COSTS MRS CLINTON DID SAY SHE BELIEVES THAT A GREATER EMPHASIS ON PREVENTIVE MEDICINE AND PRIMARY CARE COULD HELP BY CATCHING ILLNESS EARLY BEFORE IT REQUIRES COSTLY TREATMENT BUT SHE DIDN'T GIVE ANY SENSE OF THE ADMINISTRATION'S CURRENT THINKING ON TWO OTHER OPTIONS PRICE CONTROLS AND A NATIONAL HEALTHSPENDING CEILING BOTH OF WHICH ARE ANATHEMA TO THE AMA YES THERE WAS A LOT SHE DIDN'T SAY SAID JAMES TODD EXECUTIVE VICE PRESIDENT OF THE AMA IN A BRIEFING AFTER MRS CLINTON'S SPEECH THOSE ARE THE TOUGH ISSUES AND WE WILL BE WILLING TO HELP WITH THEM BUT MOST IMPORTANT SHE OFFERED US A HAND IN PARTNERSHIP IN A WARMLY RECEIVED GESTURE MRS CLINTON CALLED FOR SIMPLIFYING AND ELIMINATING BURDENSOME REGULATIONS ASSOCIATED WITH FEDERAL REGULATIONS OF SMALL MEDICAL LABS THOSE RULES MEANT TO CRACK DOWN ON SLIPSHOD LAB WORK HAVE BEEN CRITICIZED BY MANY DOCTORS FOR BEING TOO CUMBERSOME AND DRIVING UP THEIR COSTS ADDRESSING ANOTHER CLOSELY WATCHED ISSUE MRS CLINTON SAID THE ADMINISTRATION WILL TRY TO INCLUDE PRESCRIPTION DRUGS IN THE BENEFITS PACKAGE FOR ALL AMERICANS INCLUDING THOSE OVER 65 CURRENTLY THE FEDERAL MEDICARE PROGRAM WHICH COVERS ALL PEOPLE OVER 65 DOESN'T PAY FOR PRESCRIPTION DRUGS MOST DOCTORS SAID THEY LIKED THE SPEECH AND WERE SURPRISED BY ITS CONCILIATORY TONE BUT SOME WEREN'T QUITE READY YET TO DROP THEIR GUARD I'M APPRECIATIVE OF HER COMMENTS SAID FRANK INDIHAR AN INTERNIST FROM ST PAUL MINN BUT I THINK MOST PHYSICIANS WILL VIEW IT WITH SKEPTICISM IN VIEW OF THE GOVERNMENT'S PAST RECORD OF OVERREGULATION AND IN VIEW OF PAST COMMENTS THE FIRST LADY HAS MADE ABOUT MEDICINE 9306140115 930614 INTERNATIONAL TAIWAN'S FOREIGN INVESTMENT TAIPEI FOREIGN INVESTMENT IN TAIWAN APPROVED IN THE FIRST FIVE MONTHS OF 1993 AMOUNTED TO US310 MILLION DOWN 14 FROM 362 MILLION A YEAR AGO THE INVESTMENT COMMISSION SAID THE AGENCY ATTRIBUTED THE FALL MAINLY TO A DECREASED INVESTMENT FROM JAPAN WHICH TOTALED 585 MILLION DOWN 60 FROM 148 MILLION A YEAR AGO IN MAY APPROVED FOREIGN INVESTMENT STOOD AT 548 MILLION COMPARED WITH APRIL'S 713 MILLION AND MARCH'S 193 MILLION 9306140114 930614 NORTHWEST UNIONS TRY TO RESTART TALKS AFTER MACHINISTS REJECT AN EARLIER PACT BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES AND ITS UNIONS SCRAMBLED TO RESTART TALKS ON A NEW CONCESSIONARY AGREEMENT IN THE WAKE OF THE MACHINISTS' REJECTION OF THE PACT REACHED LAST MONTH REPRESENTATIVES OF THE UNIONS AND THE COMPANY TALKED BY PHONE OVER THE WEEKEND TRYING TO PUT TOGETHER FORMAL NEGOTIATIONS FOR EARLY THIS WEEK BUT IT WASN'T CLEAR WHAT THE ST PAUL MINN UNIT OF WINGS HOLDINGS INC AND NEGOTIATORS FOR THE INTERNATIONAL ASSOCIATION OF MACHINISTS COULD DO TO MAKE AN AGREEMENT MORE PALATABLE TO MEMBERS OF THE CARRIER'S LARGEST UNION IN VOTING NO BY ABOUT 60 TO 40 THE MACHINISTS SENT A MESSAGE OF WIDE DISSATISFACTION WITH THE PACT THAT CALLED FOR THEM TO CONTRIBUTE 346 MILLION OF THE 886 MILLION IN LABOR SAVINGS NORTHWEST WANTS OVER THREE YEARS WHAT'S MORE JOHN PETERPAUL THE MACHINISTS' TOP NEGOTIATOR SAID IN AN INTERVIEW YESTERDAY THAT THE INTERNATIONAL UNION WON'T USE ITS POWER TO FORCE AN AGREEMENT ON ITS 26000 NORTHWEST MEMBERS WHO INCLUDE GROUND PERSONNEL AND TICKET AND RESERVATION AGENTS MR PETERPAUL THE MACHINISTS' GENERAL VICE PRESIDENT SAID ANOTHER VOTE WILL BE NECESSARY ON ANY NEW PACT AND THAT WOULD TAKE THREE WEEKS WE NEED SOMETHING OF SUBSTANCE TO TAKE BACK TO THE PEOPLE SAID MR PETERPAUL WHO ALSO SERVES ON THE NATIONAL COMMISSION STUDYING THE AIRLINE INDUSTRY'S PROBLEMS AT THE SAME TIME HE ADDED THERE'S A POINT HERE WHERE WE DEFEAT OUR OWN PURPOSE WE'RE TRYING TO GET BREATHING ROOM FOR THE AIRLINE TO MAKE IT SOLVENT AND SAVE JOBS THE FLIGHT ATTENDANTS REPRESENTED BY THE TEAMSTERS UNION MEANWHILE HALTED VOTING ON THEIR CONCESSION AGREEMENT BECAUSE IT WAS CONTINGENT ON OTHER UNIONS TAKING PART THE AIR LINE PILOTS ASSOCIATION AND THREE SMALLER UNIONS HAVE YET TO REACH AGREEMENT WITH THE COMPANY AT STAKE IS THE CARRIER'S ABILITY TO DEAL WITH ITS CURRENT TROUBLES INDIVIDUALS FAMILIAR WITH THE TALKS AT TWO OF NORTHWEST'S MAJOR UNIONS SAID THAT THE AIRLINE HAS WARNED IT WOULD FILE FOR PROTECTION UNDER BANKRUPTCY LAWS IF IT DOESN'T HAVE AGREEMENTS BY THE END OF THE MONTH A NORTHWEST SPOKESMAN DECLINED TO COMMENT ON ANY DATE FOR A BANKRUPTCY FILING BUT ADDED THAT THE AIRLINE HAS SAID IT HOPES TO REACH AGREEMENTS WITH ALL OF ITS UNIONS BY THE END OF THE MONTH WHILE STATING A DEADLINE COULD BE A NEGOTIATING TACTIC BY THE COMPANY UNION OFFICIALS SAID THEY BELIEVE THE AIRLINE DOESN'T HAVE MUCH TIME TO RESOLVE ITS PROBLEMS NORTHWEST WAS HOPING THAT THE LABOR CONCESSIONS AND THE PROPOSED DEFERRAL OF DEBT BY LENDERS WOULD SET THE STAGE FOR A RECOVERY BUT THAT WAS UPSET LATE LAST WEEK WHEN THE MACHINISTS ACKNOWLEDGED THAT WHILE VOTING WASN'T COMPLETE EARLY RETURNS SHOWED THE AGREEMENT WOULD BE REJECTED AMONG OTHER THINGS IT CALLED FOR WAGES TO SNAP BACK AFTER THREE YEARS AND FOR THE AIRLINE TO PAY EMPLOYEES BACK FOR THEIR CONCESSIONS WITHIN 10 YEARS MR PETERPAUL SAID THE MACHINISTS DEFEATED THE PACT FOR THREE REASONS THEY DON'T WANT TO GIVE UP THE MONEY THEY DON'T BELIEVE THE FINANCIAL PROBLEMS OF THE AIRLINE AND THEY DON'T LIKE PAYING FOR A FAILED LBO OR LEVERAGED BUYOUT MUCH OF NORTHWEST'S 46 BILLION IN DEBT WAS TAKEN ON IN 1989 WHEN INVESTORS ALFRED CHECCHI AND GARY WILSON LED THE TAKEOVER OF THE NATION'S FOURTHLARGEST CARRIER 9306140113 930614 GM UNIT POSTS OPERATING PROFIT FOR FIRST TIME SATURN EMPLOYEES TO GET 1000 BONUSES EACH FOR TURNAROUND IN MAY BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT GENERAL MOTORS CORP'S SATURN UNIT WHICH RECORDED A LOSS OF 700 MILLION LAST YEAR SAID IT HAD ITS FIRST OPERATING PROFIT EVER IN MAY AND WILL PAY BONUSES TO EMPLOYEES EVERYBODY IS ABSOLUTELY ECSTATIC ABOUT IT SAID MICHAEL BENNETT PRESIDENT OF UNITED AUTO WORKERS LOCAL 1853 WHICH REPRESENTS SATURN UNDER SATURN'S LABOR CONTRACT SATURN WORKERS WILL RECEIVE BONUSES OF 1000 EACH BECAUSE OF THE PROFIT SATURN'S TURNAROUND BODES WELL FOR THE BIGGER TASK OF RETURNING GM'S OVERALL NORTH AMERICAN VEHICLE BUSINESS TO PROFITABILITY GM'S DOMESTIC OPERATIONS INCURRED A LOSS OF 45 BILLION LAST YEAR BEFORE INTEREST TAXES AND SPECIAL ITEMS GM'S CHIEF EXECUTIVE OFFICER JOHN F SMITH JR HAS VOWED TO ERASE THAT LOSS THIS YEAR BUT DESPITE THE BLACK INK AND SATURN'S CONTINUING SUCCESS WITH CONSUMERS THERE ARE STILL A LOT OF QUESTION MARKS SURROUNDING THE UNIT FOR ONE IT'S UNCLEAR IF GM'S NEW MANAGEMENT TEAM WILL KEEP POURING MONEY INTO SATURN A PET PROJECT OF FORMER GM CHAIRMAN ROGER SMITH UNLESS THE UNIT CAN GENERATE MORE ROBUST RETURNS ALREADY SATURN HAS SURRENDERED SOME OF ITS AUTONOMY BY AGREEING TO SHARE COMPONENTS WITH GM'S OTHER SMALL CAR LINES FOR ANOTHER UNITED AUTO WORKERS UNION LEADERS ARE STEPPING UP PRESSURE ON GM TO BRING SATURN'S UNIQUE LABOR CONTRACT INTO LINE WITH THE NATIONAL AGREEMENT THAT COVERS THE REST OF THE COMPANY'S US OPERATIONS MAKING SATURN'S CONTRACT CONSISTENT WITH TRADITIONAL GM AGREEMENTS COULD DRIVE UP ITS LABOR COSTS SATURN OFFICIALS PLEDGED EARLIER THIS YEAR TO BREAK EVEN FOR THE FULL YEAR AND THEY SAID FRIDAY THAT THE MAY PERFORMANCE MEANS THEY ARE ON TRACK TO DO JUST THAT BUT SATURN IS A LONG WAY FROM REPAYING THE ESTIMATED 5 BILLION THAT GM SPENT ON THE SMALL CAR MANUFACTURING UNIT SO FAR SAID ANALYST MARYANN KELLER OF FURMAN SELZ INC MS KELLER NOTED THAT SATURN GOT INTO THE BLACK BY OPERATING ITS PLANT FLAT OUT SIX DAYS A WEEK SATURN WHICH SOLD A RECORD 22697 CARS IN MAY BEGAN PRODUCING CARS IN JULY 1990 ALMOST FROM THE START THE CARS HAVE BEEN STRONG HITS CONSUMERS LIKED SATURN'S REASONABLE PRICING HIGH QUALITY AND ULTRAATTENTIVE DEALER SERVICE BUT AS A BUSINESS SATURN WAS A BIG LOSER ITS FACTORY IN SPRING HILL TENN HAS BEEN PLAGUED BY MANUFACTURING GLITCHES AND PRODUCTION COSTS FAR EXCEEDED THOSE OF RIVAL JAPANESE MODELS 9306140112 930614 MARKETING & MEDIA UNIVERSAL PICTURES SAYS JURASSIC PARK' SET BOXOFFICE RECORD FOR 3DAY OPENING BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD UNIVERSAL PICTURES' JURASSIC PARK HAD A HUGELY SUCCESSFUL OPENING WEEKEND AT THE NATION'S THEATERS WITH THE STUDIO CLAIMING THE MOVIE SET A RECORD FOR THE BIGGEST THREEDAY OPENING EVER THE BOXOFFICE TAKE UNIVERSAL ESTIMATED THE FILM GROSSED BETWEEN 48 MILLION AND 50 MILLION INCLUDING MORE THAN 3 MILLION IN SALES AT LATENIGHT PREVIEWS THURSDAY WAS IN THE NEIGHBORHOOD OF THE EXISTING RECORD SET LAST SUMMER BY WARNER BROS' BATMAN RETURNS THAT MOVIE TOOK IN 477 MILLION FOR THE SAME PERIOD THE FINAL BOXOFFICE TALLY WILL BE ANNOUNCED TODAY THE GROSS FOR THE STEVEN SPIELBERGDIRECTED DINOSAUR THRILLER WAS VIEWED FROM ALL CORNERS IN THE MOVIE BUSINESS AS OUTSTANDING ALTHOUGH THE MOVIE PLAYED AT 2404 THEATERS UNIVERSAL SAID JURASSIC PARK WAS SHOWN ON AT LEAST 3500 SCREENS THE STUDIO IS A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO'S MCA INC THE WORD STARTED GETTING OUT LAST WEEK THAT THE FILM DELIVERS THINGS MOVIEGOERS HAVE NEVER SEEN BEFORE ON THE SCREEN EVER SAID TOM POLLOCK CHAIRMAN OF THE MOTION PICTURE GROUP AT MCA IT'S VERY SELDOM THAT A FILM DOES THAT THE HUGE GROSS IS MORE THAN WELCOME AT UNIVERSAL IN PART BECAUSE THE MOVIE WAS AN EXPENSIVE ONE TO MAKE UNIVERSAL EXECUTIVES CONTINUE TO SUGGEST PRIVATELY THAT THE FILM COST ABOUT 60 MILLION ALTHOUGH OTHERS SAY THE COST IS SOMEWHAT HIGHER UNIVERSAL IS BELIEVED TO HAVE SPENT AN ADDITIONAL 20 MILLION IN MARKETING COSTS INDUSTRY EXECUTIVES SAY THE STUDIO SPENT ABOUT 25 MILLION ALONE ON SPECIALEFFECTS COSTS TO MAKE THE DINOSAURS AND UNIVERSAL PAID AUTHOR MICHAEL CRICHTON ABOUT 2 MILLION FOR THE RIGHTS TO HIS NOVEL BUT SPENT ONLY A FEW MILLION DOLLARS FOR THE ENTIRE CAST MR SPIELBERG TOOK NO MONEY UPFRONT BUT IS SAID TO HAVE A LUCRATIVE DEAL ASSURING HIM A HEFTY PERCENTAGE OF THE FILM'S BOXOFFICE GROSS UNIVERSAL EXPECTS REVENUE OVERSEAS TO HELP OFFSET COSTS AND ENSURE A PROFIT MR POLLOCK BOLDLY ESTIMATED JURASSIC PARK WILL BECOME THE HIGHESTGROSSING FILM EVER IN JAPAN I'M NOT YET PREPARED TO SAY THAT ABOUT AMERICA HE SAID ET THE EXTRATERRESTRIAL WHICH WAS ALSO DIRECTED BY MR SPIELBERG IS THE HIGHESTGROSSING HIT IN BOTH COUNTRIES UNIVERSAL SAID JURASSIC PARK WHICH OPENED TO MOSTLY POSITIVE REVIEWS GROSSED ABOUT 18 MILLION ON SATURDAY ALONE A RECORD FOR SINGLEDAY BOXOFFICE SALES THE PREVIOUS RECORD WAS HELD BY BATMAN RETURNS WHICH SOLD 168 MILLION ON THE SATURDAY OF ITS OPENING WEEKEND STUDIOS TYPICALLY SPLIT BOXOFFICE GROSSES EQUALLY WITH THEATERS BUT ON EVENT PICTURES SUCH AS THIS ONE STUDIOS GENERALLY GET A SUBSTANTIALLY LARGER CHUNK FRIDAY JURASSIC PARK WILL FACE COMPETITION FROM THE SUMMER'S OTHER HYPED MOVIE COLUMBIA PICTURES' LAST ACTION HERO WHICH STARS ARNOLD SCHWARZENEGGER COLUMBIA IS A UNIT OF SONY CORP BUT MOVIE EXECUTIVES YESTERDAY WERE DECLARING THAT THE OPENING STRENGTH OF JURASSIC PARK MEANS THE FILM SHOULD HANDILY RETAIN ITS GRIP ON THE TOP SPOT THIS WEEKEND THE HIGH OPENINGWEEKEND GROSS ON JURASSIC PARK WAS AIDED IN PART BY STRONG ADVANCE SALES THROUGH TELEPHONE TICKETING UNIVERSAL SET A SWEEPING PROMOTION WITH THE MOVIEFONE SERVICE OPERATED BY PROMOFONE INC ANDREW JARECKI MANAGING DIRECTOR AT MOVIEFONE SAID ESTIMATES INDICATED 67 OF EVENING SHOWS AT 30 MAJOR THEATERS IN LOS ANGELES AND NEW YORK WERE SOLD OUT ENTIRELY THROUGH THE TELETICKETING SERVICE 9306140111 930614 INTERNATIONAL US JAPAN ARE OPTIMISTIC ON AGENDA FOR TRADE TALKS WASHINGTON US AND JAPANESE NEGOTIATORS ENDED TWO DAYS OF MEETINGS OPTIMISTIC THAT THEY WILL AGREE ON AN AGENDA FOR TRADE TALKS STARTING IN JULY BUT SPLIT ON THE SUBSTANCE OF THOSE TALKS THE US IS PRESSING FOR THE TALKS TO INVOLVE BROAD ECONOMIC MEASURES TO SHRINK JAPAN'S GLOBAL TRADE SURPLUS AS WELL AS FIVE PARALLEL NEGOTIATIONS TO OPEN THE JAPANESE MARKET TO US INDUSTRIES JAPAN PRESENTED ITS OWN PLAN WHICH THE US SAID HAD LESS DETAIL THAN THE US PROPOSAL BUT JAPANESE TRADE OFFICIALS DECLINED TO COMMENT A JAPANESE TRADE OFFICIAL SAID HOWEVER HIS COUNTRY OBJECTED TO US PROTECTIONIST MEASURES INCLUDING PORTIONS OF US TRADE LAW THAT ENABLE THE US TO UNILATERALLY IMPOSE SANCTIONS THE OFFICIAL ALSO SAID JAPAN HAS SOME CONCERN THAT THE US HASN'T LIVED UP TO PAST PROMISES SUCH AS SHRINKING THE SIZE OF ITS BUDGET DEFICIT THAT'S WHAT WE SEE AS PROBLEMS IN THE US THE OFFICIAL SAID BOWMAN CUTTER DEPUTY DIRECTOR OF THE NATIONAL ECONOMIC COUNCIL CALLED THE TALKS PRODUCTIVE MR CUTTER WHO OVERSAW THE INTERAGENCY GROUP THAT PUT TOGETHER THE US TRADE PLAN STRESSED THAT THE MEETINGS HERE WEREN'T INTENDED TO ARRIVE AT AN AGREEMENT THE US WANTS JAPAN TO AGREE TO TALKS THAT LAST FROM SIX MONTHS TO ONE YEAR ON FIVE CATEGORIES COMPLIANCE WITH PAST AGREEMENTS GOVERNMENT PROCUREMENT AUTOMOTIVE AND AUTO PARTS ISSUES REGULATORY MATTERS AND TECHNOLOGY AND FOREIGN INVESTMENT 9306140110 930614 BUSINESS BRIEF MARTIN MARIETTA SETS PACT WITH INTELSAT SETTLES SATELLITE SUIT WASHINGTON MARTIN MARIETTA CORP AND INTERNATIONAL TELECOMMUNICATIONS SATELLITE ORGANIZATION INTELSAT SAID THEY HAVE REACHED A PROPOSED SETTLEMENT OF LITIGATION STEMMING FROM A FAILED SATELLITE LAUNCH IN 1990 THE SETTLEMENT EXACT TERMS OF WHICH WEREN'T DISCLOSED CALLS FOR INTELSAT TO BUY AN UNDISCLOSED NUMBER OF INTELSAT VIII SATELLITES FROM MARTIN MARIETTA UNDER AN EXISTING CONTRACT INTELSAT HAS WITH THE FORMER GE ASTROSPACE WHICH MARTIN MARIETTA ACQUIRED THIS SPRING AS PART OF ITS 305 BILLION ACQUISITION OF GENERAL ELECTRIC CO'S AEROSPACE DIVISION TERMS AND CONDITIONS OF THAT CONTRACT WILL BE REVISED IN MARCH 1990 A 150 MILLION INTELSAT SATELLITE LAUNCHED FROM A MARTIN MARIETTA TITAN III ROCKET ENDED UP IN A USELESS ORBIT AFTER THE SYSTEM THAT SEPARATED THE SATELLITE FROM THE ROCKET MALFUNCTIONED MARTIN MARIETTA BLAMED THE MISHAP ON A WIRING PROBLEM ANTICIPATING A LAWSUIT FROM INTELSAT MARTIN MARIETTA FILED SUIT SEEKING A FEDERAL COURT RULING THAT UNDER THE LAUNCH CONTRACT INTELSAT HAD ASSUMED THE RISK OF LOSS OF ITS SATELLITE INTELSAT HAD BEEN OFFERED INSURANCE AGAINST A LAUNCH FAILURE BUT DECIDED AGAINST BUYING IT MARTIN MARIETTA CLAIMED INTELSAT COUNTERSUED SEEKING 400 MILLION IN DAMAGES THE SETTLEMENT AGREEMENT WILL BE CONSIDERED FOR FINAL APPROVAL AT THE SEPTEMBER BOARD MEETING OF INTELSAT AN INTERNATIONAL CONSORTIUM 9306140109 930614 ECONOMY PRODUCER PRICES ARE UNCHANGED IN MAY REPORT RETAIL SALES BARELY BUDGE INFLATION SCARE IS EASED BY GOVERNMENT'S DATA BY CHRIS FRAMPTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INFLATION SCARE IS OVER AT LEAST FOR NOW WHOLESALE PRICES WERE UNCHANGED FOR THE MONTH OF MAY NEW GOVERNMENT FIGURES SHOWED SUGGESTING TO ANALYSTS THAT FEARS OF RISING INFLATION WERE UNWARRANTED IF TOMORROW'S CONSUMER PRICE REPORT IS SIMILARLY ENCOURAGING THE FEDERAL RESERVE IS LIKELY TO HOLD OFF ON ANY RISE IN SHORTTERM INTEREST RATES WITH SOME FED OFFICIALS PRESSING FOR HIGHER RATES MORE BAD NEWS ON THE INFLATION FRONT WOULD HAVE INCREASED THE PRESSURE ON FED CHAIRMAN ALAN GREENSPAN TO PUSH UP INTEREST RATES TO SHOW ANTIINFLATION RESOLVE A SECOND GOVERNMENT REPORT SAID THAT RETAIL SALES GREW ONLY 01 IN MAY ANOTHER HINT THAT THE ECONOMIC RECOVERY REMAINS DISAPPOINTING THE LABOR DEPARTMENT REPORT THAT WHOLESALE PRICES DIDN'T CHANGE IN MAY FOLLOWED WORRISOME INCREASES OF 06 IN APRIL AND 04 IN MARCH ENERGY AND FOOD PRICES FELL IN MAY EXCLUDING THESE VOLATILE SECTORS THE PRICE OF FINISHED GOODS AT THE PRODUCER LEVEL ROSE A SLIGHT 02 THE INCREASE REFLECTED A SURPRISING 21 SPIKE IN TOBACCO PRICES THAT ANALYSTS EXPECT TO BE REVERSED IN LATER MONTHS I THINK THESE NUMBERS SORT OF BELAY THE FEARS OF GROWING INFLATION SAID MARY ROONEY OF SG WARBURG SECURITIES THIS IS MUCH CLOSER TO WHAT WE'LL SEE FOR THE REST OF THE YEAR TREASURY SECRETARY LLOYD BENTSEN SAID THE FLAT RATE WAS ENCOURAGING ADDING THAT HE HOPED THE FEDERAL RESERVE WOULD AGREE THE CLINTON ADMINISTRATION WOULD PREFER TO SEE INTEREST RATES STAY WHERE THEY ARE AND WAS AFRAID A JUMP IN INFLATION WOULD LEAD THE FED TO BOOST RATES IN A MEETING WITH REPORTERS LAURA TYSON CHAIRMAN OF THE PRESIDENT'S COUNCIL OF ECONOMIC ADVISERS SAID THE FLAT RATE WAS AN INDICATION THAT THE ECONOMY WAS PROGRESSING SLOWLY WE DO NOT HAVE WHAT YOU WOULD CALL A VIGOROUS RECOVERY HERE SHE SAID ACCORDING TO FRIDAY'S LABOR DEPARTMENT REPORT PRODUCER PRICES FOR INTERMEDIATE GOODS FELL 02 AFTER RISING 02 IN APRIL THERE WAS A 20 INCREASE IN PRICES OF CRUDE GOODS MOSTLY IN ENERGY THESE PRICES HAD RISEN 06 IN APRIL THE MEAGER RISE IN RETAIL SALES ALSO EASED FEARS OF GROWING INFLATIONARY PRESSURES THE COMMERCE DEPARTMENT SAID SALES ROSE 01 IN MAY TO 1701 BILLION AFTER CLIMBING 15 IN APRIL ANALYSTS POINTED TO LOWER SALES FOR GASOLINE AND FOOD AS THE PRIMARY DETRACTOR GASOLINE SALES FELL 16 LAST MONTH AFTER RISING 06 IN APRIL FOOD STORE SALES WERE DOWN 04 AFTER A 08 INCREASE FURNITURE AND APPLIANCE SALES WERE OFF 09 IN MAY AFTER A 10 INCREASE IN APRIL THE DECLINE HOWEVER IS PROBABLY ONLY TEMPORARY CONSIDERING THAT AUTOMOBILE SALES EXPANDED 04 AFTER A 21 APRIL INCREASE CONSUMERS TEND TO BUY CARS AND APPLIANCES AT DIFFERENT TIMES THE DECLINE IN FURNITURE SALES SHOULD REVERSE AS A RESULT OF THE RECENT PICKUP IN HOME SALES HERE ARE THE LABOR DEPARTMENT'S PRODUCER PRICE INDEXES 1982=100 FOR MAY BEFORE SEASONAL ADJUSTMENT AND THE PERCENTAGE CHANGES FROM MAY 1992 9306140108 930614 WHEN USING IN A FAVORITE RECIPE START OFF WITH A 20TH OF A PINCH BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL HERE IS A HOT STORY IN MORE WAYS THAN ONE IT BEGAN THIS PAST MARCH WHEN RESEARCHERS AT THE US DEPARTMENT OF AGRICULTURE IN CHARLESTON SC DEVELOPED A SLIM 4INCH LONG PEPPER THAT IS 20 TIMES HOTTER THAN THE COMMON JALAPENO TO THE RESEARCHERS THAT WAS NOTHING OUT OF THE ORDINARY BUT AFTER A USDA NEWSLETTER ROUTINELY ANNOUNCED THE NEW PEPPER THE DEPARTMENT WAS INUNDATED WITH REQUESTS FOR ITS SEEDS AT LAST COUNT THE CHARLESTON OFFICE HAS RECEIVED MORE THAN 25000 LETTERS AND PHONE CALLS CONCERNING THE INCENDIARY PEPPER IT HAS ALSO FIELDED QUESTIONS ON THE SUBJECT FROM 45 RADIO STATIONS 10 TELEVISION STATIONS AND DOZENS OF NEWSPAPERS FROM AROUND THE WORLD SAYS CLAUDE THOMAS DIRECTOR OF THE USDA'S VEGETABLE LABORATORY IN CHARLESTON I HAVE NEVER SEEN ANYTHING LIKE THIS SAYS MR THOMAS SIX YEARS AGO WE DEVELOPED AN INSECTRESISTANT SOUTHERN PEA WE GOT A COUPLE OF THOUSAND PEOPLE WRITING FOR SEEDS WE THOUGHT THAT WAS A VERY BIG RESPONSE THE OBJECT OF ALL THIS FASCINATION IS A PEPPER VARIETY KNOWN AS CAYENNE WHICH GROWS IN THE CAROLINAS TO FLORIDA AND TEXAS TO CALIFORNIA MOST OF THE CROP GOES INTO SALSAS AND HOT SAUCES DEVELOPMENT OF THE NEW VERSION STARTED WITH TWO RESEARCHERS PHILIP DUKES AND RICHARD FERY TRYING TO RESTORE A VERY HOT CAYENNE THAT HAD BECOME EXTINCT IT WAS LAST SEEN IN THE 1950S BUT MEMORIES OF IT WERE STILL PUNGENT ON THE PALATE OF OLDER SOUTH CAROLINIANS SAYS DR DUKES THE RESEARCHERS COLLECTED SEVERAL EXISTING CAYENNEPEPPER PLANTS BY CROSSING THEM AND THEIR PROGENY WITH EACH OTHER IN A PROCESS LASTING ABOUT 12 YEARS THEY FINALLY CAME UPON A PEPPER THAT BEST MATCHED THE DESCRIPTION GIVEN BY THE PEOPLE WHO REMEMBERED THE OLD CAYENNE THE USDA CHRISTENED THE NEW PEPPER CHARLESTON HOT WHAT DOES DR PEPPER THINK OF ALL THIS THAT'S BENIGNO VILLALOM A PLANT PATHOLOGIST AT TEXAS A&M UNIVERSITY WHO GOT HIS NICKNAME AFTER HE GENETICALLY ALTERED THE JALAPENO IN 1981 TO PRODUCE A MILD COUSIN HE FELT THAT EVEN THE JALAPENO TEPID COMPARED WITH THE MILDEST CAYENNE WAS TOO HOT FOR MOST AMERICANS WHEN TOLD OF THE DEMAND FOR CHARLESTON HOT DR VILLALOM IS INITIALLY SURPRISED BUT ON SECOND THOUGHT TAKES SOME CREDIT FOR THE CRAZE HIS BOAST WE FIRST GOT PEOPLE ADDICTED TO MILD 9306140107 930614 PSST WANT TO BUY SOME SPY' PHOTOS OF DETROIT'S '94 CARS AUTO MAGAZINES DO SO THEY CONTACT CAGEY JIM DUNNE BUZZING A CHEVY CORVETTE BY NEAL TEMPLIN STAFF REPORTER OF THE WALL STREET JOURNAL DEARBORN MICH JIM DUNNE IS ON A SHOOTING SAFARI OUT FOR BIG GAME DETROIT STYLE HE'S CRUISING THROUGH THIS DETROIT SUBURB IN A BIG WHITE CHEVY CAPRICE SUDDENLY ACROSS OAKWOOD BOULEVARD HE SPIES HIS PREY CAMOUFLAGED BY BLACK MATERIAL HANGING FROM ITS NOSE AND TAIL HE'S GOING TO PULL OUT AND WHEN HE DOES I'LL GET A NICE SHOT SAYS MR DUNNE THE QUARRY SQUEALS ACROSS OAKWOOD AND DARTS TOWARD THE GATE OF FORD MOTOR CO'S PRIVATE TEST TRACK BUT NOT BEFORE MR DUNNE RAISES HIS PIECE AND CALMLY SQUEEZES OFF A FEW SHOTS I GOT HIM HE CRIES WHAT MR DUNNE GOT WAS A PHOTOGRAPH OF WHAT HE BELIEVES IS THE US VERSION OF THE YETTOBE UNVEILED FORD MONDEO DUE OUT NEXT YEAR MR DUNNE IS A SPY PHOTOGRAPHER THE 60YEAROLD DETROITER HAS BEEN SHOOTING SPY PHOTOS OF PROTOTYPE CARS FOR 30 YEARS HE IS THE DEAN OF THE SMALL BUT GRITTY BAND OF US SPY PHOTOGRAPHERS WHO MATCH WITS WITH AUTO MAKERS TO GET PICTURES OF FUTURE MODELS FOR PUBLICATION IN CAR MAGAZINES AN INTENSELY COMPETITIVE MAN WHOSE ARSENAL INCLUDES A NIKON 8008 AND A 500MILLIMETER TELEPHOTO LENS MR DUNNE RHYMES WITH GUN STILL GETS A HIGH EVERY TIME HE SHOOTS A NEW CAR I JUST FEEL TERRIFIC HE DECLARES JUST LAST MONTH BUSINESS WEEK AND AUTOWEEK RAN MR DUNNE'S PHOTOS OF THE FUTURE DODGE NEON ON THEIR COVERS BOTH MAGAZINES PAID MR DUNNE MORE THAN 1000 FOR THE SHOT ADDING TO FEES HE HAD ALREADY RECEIVED FOR THE PHOTOS FROM OTHER PUBLICATIONS TO CAPTURE THEIR ELUSIVE PREY ON FILM MR DUNNE AND HIS COMPETITORS STALK THE STREETS OF SUBURBAN DETROIT AND THE PROVING GROUNDS AND ENGINEERING CENTERS AROUND THE COUNTRY AND THE WORLD THEY SHIVER OUTSIDE WINTER TEST TRACKS IN FRIGID NORTHERN MICHIGAN AND SWELTER IN THE DESERTS OF ARIZONA AND CALIFORNIA WHERE CAR MAKERS TEST VEHICLES IN EXTREME WEATHER SEVERAL YEARS AGO MR DUNNE HIRED A HELICOPTER TO GET A SHOT OF A NEW CORVETTE AS IT UNDERWENT HOTWEATHER TESTING IN DEATH VALLEY THE HELICOPTER BUZZED PAST THE CORVETTE AND LANDED JUST AHEAD OF IT AS THE TEST DRIVERS STOPPED THE TWOSEATER TO SEE WHAT WAS UP MR DUNNE HOPPED OUT TOOK HIS PHOTOS AND HAPPILY FLEW AWAY MR DUNNE WAS PART OF A BUZZ OF A DIFFERENT SORT IN DECEMBER 1989 WHEN AUTOMOBILE MAGAZINE RAN PHOTOS OF SEVERAL GENERAL MOTORS CORP PROTOTYPES THEY INCLUDED THE THENSECRET SATURN CAR AND THE '93 CAMARO AND FIREBIRD WE PENETRATED GENERAL MOTORS SECURITY TO EXAMINE THE NEXT GENERATION FCAR CROWED THE MAGAZINE USING GM'S CODE NAME FOR THE CAMARO AND FIREBIRD IT CREDITED THE PHOTOS TO MR DUNNE IT TURNED OUT HOWEVER THAT THE PHOTOS WERE STOLEN FROM GM'S FILES BY GREGORY CHARLES HOOPER A CONTRACT PHOTOGRAPHER WORKING FOR THE COMPANY AT GM'S URGING MR HOOPER WAS PROSECUTED AND CONVICTED OF MAIL FRAUD HE WAS SENTENCED TO 14 MONTHS IN FEDERAL PRISON AUTOMOBILE'S PUBLISHER DAVID E DAVIS JR SAYS THE HOOPER PHOTOS WERE BROUGHT TO THE MAGAZINE BY MR DUNNE I DON'T KNOW ANYTHING ABOUT THAT SAYS MR DUNNE WHO DECLINES TO DISCUSS THE MATTER FURTHER A GM OFFICIAL SAYS MR DUNNE DIDN'T KNOW THE PHOTOS WERE STOLEN IN ANY EVENT MR DUNNE WASN'T CHARGED MR DUNNE SAYS HE NEVER TRESPASSES TO GET A PHOTO BUT HE HAS A NARROW INTERPRETATION OF WHAT IS TRESPASSING HE ONCE WALKED PAST SEVERAL SECURITY GUARDS AT A GM FACILITY WHERE SOME FUTURE CARS WERE BEING SHOWN TO A CONSUMER FOCUS GROUP WAS IT TRESPASSING THERE WAS NO SIGN THERE AT ALL SHRUGS MR DUNNE WELL HOW ARE YOU TO KNOW BUT WHEN MR DUNNE FINDS HIS COMPETITORS SHOOTING FROM ONE OF HIS FAVORITE PERCHES A HILL OVERLOOKING THE GM PROVING GROUNDS IN MILFORD MICH HE DUTIFULLY INFORMS GM SECURITY IT'S MY HILL HE EXPLAINS TO A REPORTER CAR MAKERS AREN'T ALWAYS EASY PREY GERMANY'S HANS LEHMANN REGARDED AS THE WORLD'S TOP SPY PHOTOGRAPHER SAYS HE ONCE WAS RUN OFF AN ICY FINNISH ROAD AND INTO A SNOWBANK BY A TEST DRIVER FOR VOLKSWAGEN AG WHO DIDN'T WANT HIM TO SHOOT HIS TEST CAR ANOTHER TIME MR LEHMANN WAS JAILED BY ALGERIAN POLICE FOR PHOTOGRAPHING VW'S AUDI VEHICLES DURING DESERT TRIALS HE WAS HELD FOR A DAY AND RELEASED AFTER THE POLICE FAILED TO FIND HIS FILM MR LEHMANN HAD BURIED THE FILM IT WAS LATER SMUGGLED OUT BY A COLLEAGUE COMPANIES OFTEN CONCEAL SECRET PROTOTYPES IN CLOTH BRAS WEIRD PAINT JOBS AND FAKE BODY PANELS CHRYSLER CORP IS CURRENTLY TESTING A FUTURE VEHICLE IT WON'T SAY WHICH ONE THAT IS COMPLETELY ENCASED IN PLASTIC BODY PANELS BUT AT A CERTAIN POINT NEW CARS MUST BE TESTED PRETTY MUCH AS THEY WILL APPEAR IN PRODUCTION LAST SUMMER MR DUNNE GOT A PHOTO OF A NEW DODGE PICKUP TRUCK MONTHS BEFORE CHRYSLER UNVEILED IT WITH GREAT FANFARE AT THE DETROIT AUTO SHOW HE SHOT THE TRUCK FROM THE GATE AT CHRYSLER'S TEST TRACK IN CHELSEA MICH CHRYSLER PROMPTLY ERECTED A WALL TO BLOCK FUTURE SHOTS LAST YEAR MR LEHMANN 53 SPENT TWO MONTHS IN ARIZONA TO AMONG OTHER THINGS HUNT DOWN THE SUCCESSOR TO THE MERCEDES 190 DUE OUT THIS FALL WHEN HE FINALLY FOUND A PROTOTYPE PARKED AT A CONVENIENCE STORE WHILE ITS DRIVER WAS INSIDE A COLLEAGUE SNAPPED MR LEHMANN GRINNING IN THE FRONT SEAT OF THE MERCEDES THE PHOTO APPEARED IN GERMAN MAGAZINES IN EUROPE WHERE THERE IS MORE INTENSE INTEREST IN NEW CARS MAGAZINES PAY DEARLY FOR SPY PHOTOS MR LEHMANN SAYS HIS PRINTS FETCH UP TO 20000 BUT MOST AMERICAN CAR MAGAZINES PAY ONLY A FEW HUNDRED DOLLARS FOR PHOTOS AND MORE FOR COVER SHOTS MR DUNNE SAYS HE EARNS ABOUT 40000 A YEAR FROM SPY PHOTOS THAT'S IN ADDITION TO HIS SALARY AS DETROIT EDITOR OF POPULAR MECHANICS THE MAGAZINE RUNS SOME OF HIS PHOTOS BUT HE SELLS MOST TO OTHER PUBLICATIONS FOR MANY YEARS CAR MAKERS DIDN'T WORRY MUCH ABOUT SPY PHOTOGRAPHERS IN THE 1960S AND '70S ED LECHTZIN THEN A REPORTER WITH UNITED PRESS INTERNATIONAL WOULD SHOOT PROTOTYPE CARS IN THE PARKING LOT OF SCHULER'S RESTAURANT IN MARSHALL MICH A FAVORITE HANGOUT OF TEST DRIVERS ONCE MR LECHTZIN NOW A PUBLICRELATIONS EXECUTIVE FOR GM SNAPPED A BANGEDUP PROTOTYPE OF A FORD GRANADA HE CALLED FORD'S PR DEPARTMENT WHICH WAS AGHAST AT THE PROSPECT OF A SHODDYLOOKING CAR APPEARING IN PRINT SO MR LECHTZIN WAS TOLD TO SHOW UP ON OAKWOOD BOULEVARD IN DEARBORN AT A CERTAIN TIME AT THE APPOINTED HOUR A GLEAMING NEW GRANADA DROVE UP AND DOWN THE STREET UNTIL MR LECHTZIN HAD HIS SHOT TODAY CAR MAKERS VIEW SPY PHOTOS WITH MIXED EMOTIONS WHEN A COMPANY WANTS TO KEEP THE WRAPS ON A CAR SO IT CAN MAKE A BIG SPLASH AT LAUNCH TIME THE SPY PHOTOGRAPHER IS A REAL PAIN SAYS THOMAS HOUSTON WHO RETIRED FROM CHRYSLER'S PR DEPARTMENT LAST YEAR ON THE OTHER HAND HE CONTINUES SPY PHOTOS CAN BE ANOTHER TOOL FOR WHETTING THE PUBLIC'S APPETITE FOR A NEW MODEL NOW CAR MAKERS THEMSELVES RELEASE PHOTOS OF FUTURE PRODUCTS LAST YEAR GM'S CHEVROLET DIVISION ISSUED AN ARTSY PHOTO OF THE FRONT END OF THE '93 CAMARO JIM HANS ET AL EAT YOUR HEARTS OUT READ THE CAPTION FROM CHEVY PUBLIC RELATIONS AND UNLIKE YEARS PAST CAR MAKERS FREQUENTLY SHOW FUTURE MODELS AT CAR SHOWS FURTHER UNDERCUTTING DEMAND FOR SPY PHOTOS THERE'S ALWAYS ONE SAD FACE AT AUTO SHOWS SIGHS MR DUNNE THAT'S ME 9306140106 930614 CREDIT RATINGS HJ HEINZ CO PITTSBURGH MOODY'S INVESTORS SERVICE INC PUT 800 MILLION OF HEINZ DEBT ON REVIEW FOR A POSSIBLE DOWNGRADE A DAY AFTER A SIMILAR ACTION BY STANDARD & POOR'S CORP THE RATING SERVICE CITED A HIGHER DEBT LEVEL BECAUSE OF A SHAREREPURCHASE PROGRAM AND ACQUISITIONS MOODY'S WILL REVIEW THE FOOD COMPANY'S EUROBONDS NOTES AND INDUSTRIAL REVENUE BONDS HEINZ SAID THE REVIEW DOESN'T REFLECT ON THE SOLID STATUS OF OUR BUSINESS 9306140105 930614 INTERNATIONAL NORTH KOREA US PLAN TALKS ON MANY ISSUES BY JOHN J FIALKA STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE US AND NORTH KOREA HAVE EMBARKED ON WHAT COULD BE MONTHS OF NEGOTIATIONS COVERING A RANGE OF ISSUES INCLUDING NUCLEAR AND MISSILE PROLIFERATION MISSING PRISONERS OF WAR AND ECONOMIC ASSISTANCE THE PROMISE OF TALKS CAME AFTER NORTH KOREAN DIPLOMATS AGREED TO SUSPEND THEIR WITHDRAWAL FROM THE TREATY ON THE NONPROLIFERATION OF NUCLEAR WEAPONS AS LONG AS IT CONSIDERS NECESSARY THE NORTH KOREANS REVERSED AN EARLIER STAND TAKEN IN MARCH TO WITHDRAW FROM THE TREATY SATURDAY SO FAR NO NATION HAS WITHDRAWN FROM THE 23YEAROLD TREATY UNDER WHICH 158 NATIONS HAVE FORSWORN NUCLEAR WEAPONS HOWEVER NORTH KOREA DIDN'T CHANGE ITS REFUSAL TO ALLOW INTERNATIONAL INSPECTION OF TWO FACILITIES THAT MAY BE RELATED TO A NUCLEAR WEAPONS PROGRAM THE TREATY REQUIRES SUCH INSPECTIONS IT'S A BEGINNING TO A DIALOGUE EXPLAINED A US OFFICIAL WHO SAID THE US WILL TRY TO RESOLVE THE INSPECTION ISSUE IN FURTHER TALKS WHICH WILL TAKE PLACE WITHIN A MATTER OF WEEKS IN A JOINT STATEMENT FRIDAY BOTH NATIONS GAVE EACH OTHER MUTUAL ASSURANCES AGAINST THE THREAT AND USE OF FORCE INCLUDING NUCLEAR WEAPONS MEANWHILE SOUTH KOREA RESPONDED WITH WARY OPTIMISM IN A NEWS RELEASE FOREIGN MINISTER HAN SUNGJOO SAID THE GOVERNMENT POSITIVELY EVALUATES NORTH KOREA'S DECISION BUT SAID IT HOPES AND EXPECTS THAT THE NORTH WILL EXPEDITIOUSLY CLEAR UP INTERNATIONAL SUSPICIONS ABOUT ITS NUCLEAR INTENTIONS THIS IS THE BEST RESULT THAT I COULD ANTICIPATE HAPPENING SAID PETER HAYES AN ANALYST FOR A PRIVATE RESEARCH COMPANY IN BERKELEY CALIF WHO HAS WRITTEN A BOOK ON THE NORTH KOREAN NUCLEAR EFFORT HE SAID THE NEXT STEP FOR THE US WILL BE TO PERSUADE NORTH KOREA TO ALLOW INTERNATIONAL INSPECTION OF THE REMOVAL OF NUCLEAR FUEL FROM A NUCLEAR RESEARCH REACTOR AT YONGBYON 60 MILES NORTH OF PYONGYANG AN EXAMINATION OF THE SPENT NUCLEAR FUEL IN THE REACTOR'S CORE HE SAID MAY RESOLVE SUSPICIONS BY THE INTERNATIONAL ATOMIC ENERGY AGENCY THAT NORTH KOREAN TECHNICIANS HAVE REMOVED SOME PLUTONIUM FROM THE REACTOR AND DIVERTED IT TO WEAPONS USE PLUTONIUM WHICH IS CREATED AS URANIUMBASED NUCLEAR FUEL BURNS IN A REACTOR IS AN EXPLOSIVE METAL THAT IS USED IN NUCLEAR WARHEADS INSPECTION OF THE CORE AND VARIOUS RECORDS RELATED TO IT ACCORDING TO MR HAYES COULD TAKE AS LONG AS SIX MONTHS KANG SOK JU NORTH KOREA'S VICE FOREIGN MINISTER WHO LEADS HIS COUNTRY'S DELEGATION HINTED THAT THE US OFFERED NOTHING CONCRETE IN EXCHANGE FOR THE DECISION TO SUSPEND THE WITHDRAWAL FROM THE TREATY THIS IS NOT HORSETRADING THE MINISTER TOLD REPORTERS AT THE US MISSION TO THE UNITED NATIONS SECRETARY OF STATE WARREN CHRISTOPHER AT A MEETING IN GREECE OVER THE WEEKEND EMPHASIZED THAT NORTH KOREA HAD TAKEN AN IMPORTANT FIRST STEP AND PLAYED DOWN THE IDEA THAT THE US AND OTHER NATIONS MIGHT HAVE TO MAKE SOME CONCESSIONS TO NORTH KOREA THIS INTERIM STEP THE DECISION NOT TO WITHDRAW FROM THE TREATY WAS NOT IN THE CONTEXT OF SOCALLED CONCESSIONS MADE BY US HE SAID A US OFFICIAL SAID ANY DISCUSSION OF ECONOMIC ASSISTANCE FOR NORTH KOREA WOULDN'T OCCUR SOON FIRST HE SAID THE US WANTS TO CLEAR UP THE INSPECTION ISSUE AND ALSO TALK ABOUT NORTH KOREA'S PLANS TO EXPORT THE NODONG1 MISSILE AN IMPROVED VERSION OF THE RUSSIAN SCUD WHICH NORTH KOREA PLANS TO SELL TO IRAN THE MISSILE'S RANGE COULD ALLOW IT TO REACH JAPAN BUT ANALYSTS BELIEVE ITS ACCURACY ISN'T MUCH BETTER THAN THE SCUD WHICH OFTEN MISSES ITS TARGET BY MILES THE US ALSO WANTS TO DISCUSS THE POSSIBILITY THAT NORTH KOREA MAY HAVE THE REMAINS OF SOME US SERVICEMEN WHO WERE MISSING OR TAKEN PRISONER DURING THE KOREAN WAR THE NEXT STEP AGAINST NORTH KOREA MIGHT HAVE BEEN ECONOMIC SANCTIONS IMPOSED BY THE UNITED NATIONS SECURITY COUNCIL DAVID KAY WHO FORMERLY HEADED THE INSPECTION TEAM THAT INVESTIGATED IRAQ'S NUCLEAR WEAPONS PROGRAM SAID THE MOST WORRISOME ASPECT OF NORTH KOREA'S POSITION IS THAT IT COULD TRIGGER AN ARMS RACE IN WHICH JAPAN AND SOUTH KOREA DECIDE TO DEVELOP NUCLEAR WEAPONS IF THIS DELAY LEADS TO PROLONGED AMBIGUITY AS TO WHETHER NORTH KOREA'S NUCLEAR WEAPONS PROGRAM EXISTS OR HAS BEEN ELIMINATED THEN IT'S NOT MUCH DIFFERENT THAN A WITHDRAWAL FROM THE TREATY IN TERMS OF ITS IMPACT ON OTHER NATIONS HE SAID 9306140104 930614 BRITISH AEROSPACE SAYS DELIVERY OF NEW PLANES EXPECTED TO BEGIN IN '98 SPECIAL TO THE WALL STREET JOURNAL PARIS BRITISH AEROSPACE PLC WILL SOON LAUNCH THE JETSTREAM 51 AND JETSTREAM 71 TURBOPROP AIRCRAFT FOR DELIVERIES EXPECTED TO BEGIN IN 1998 THE COMPANY ANNOUNCED AT THE PARIS AIR SHOW IT SAID DEVELOPMENT SHOULD BEGIN NO LATER THAN YEAR'S END THE 50SEAT JETSTREAM 51 AND 72SEAT JETSTREAM 71 ARE IN THE LAST STAGE OF CONCEPTION THE COMPANY SAID THEY WILL COMPLETE BRITISH AEROSPACE'S RANGE OF REGIONAL AIRCRAFT WHICH CARRY 19 TO 89 PASSENGERS THE MARKET FOR 40TO80SEAT AIRCRAFT IS ESTIMATED BY THE COMPANY AT 2400 UNTIL THE YEAR 2011 IT SAID THE NEW JETSTREAMS WILL COMBINE THE STANDARDS OF COMFORT AND PERFORMANCE OF A JET WITH THE SUBSTANTIAL COST SAVINGS OF A TURBOPROP THE JETSTREAM 51 AND 71 WILL HAVE SIMILAR DESIGNS ALTHOUGH THE LATTER WILL HAVE A LONGER FUSELAGE JETSTREAM CURRENTLY PRODUCES THE 19SEAT J31 A 29SEAT J41 AND THE 64SEAT ATP WHICH IS IN THE PROCESS OF BEING UPGRADED TO THE 70SEAT J61 THE LATTER WILL BE AVAILABLE IN JANUARY 1994 OTHER MAJOR FACTORS IN THE HOTLY CONTESTED REGIONAL MARKET INCLUDE PARTNERS AEROSPATIALE OF FRANCE AND ITALY'S ALENIA SPA WHICH RUN THE JOINT VENTURE AVIONS DE TRANSPORT REGIONAL GERMANY'S DEUTSCHE AEROSPACE ALSO IS A MAJOR PLAYER SINCE PURCHASING A CONTROLLING STAKE IN FOKKER OF THE NETHERLANDS 9306140103 930614 CORPORATE FOCUS IG LABS QUIETLY BREAKS NEW GROUND IN BIOTECHNOLOGY ADVANCES IN GENETIC TESTING RAISE LUCRATIVE AND THORNY POSSIBILITIES BY DAVID STIPP STAFF REPORTER OF THE WALL STREET JOURNAL FRAMINGHAM MASS IG LABORATORIES INC IS NO 1 IN ITS NICHE HAS SURGING REVENUE AND IS PIONEERING TECHNOLOGY POTENTIALLY WORTH HUNDREDS OF MILLIONS OF DOLLARS BUT THE BIOTECHNOLOGY COMPANY GETS LITTLE ATTENTION ON WALL STREET SOME DAYS ITS SHARES AREN'T EVEN TRADED ONE REASON IS THAT GENZYME CORP OWNS 70 OF THE COMPANY LEAVING RELATIVELY FEW SHARES AVAILABLE TO CIRCULATE IG ALSO KEEPS A LOW PROFILE FOR A COMPANY THAT IS CLOSING IN ON A POSSIBLE BREAKTHROUGH IG IS THE LEADER IN GENETICS TESTING A TRADITIONALLY SLOWGROWTH BUSINESS ON THE BRINK OF REVOLUTIONARY CHANGE GENE FINDINGS OVER THE PAST FEW YEARS HAVE OPENED THE DOOR FOR TESTS PREDICTING A PERSON'S CHANCES OF GETTING CYSTIC FIBROSIS LOU GEHRIG'S DISEASE AND MANY OTHER INHERITED DISORDERS WITHIN A FEW YEARS SIMILAR TESTS ARE EXPECTED FOR PREDISPOSITIONS TO CANCER HEART DISEASE AND OTHER MAJOR KILLERS THIS HIGHTECH SOOTHSAYING HOLDS ENORMOUS PROMISE TO PREVENT OR AMELIORATE DISEASES AND KEEP DOWN HEALTHCARE COSTS POTENTIALLY MAKING IT ONE OF BIOTECHNOLOGY'S HOTTEST NICHES SOME ANALYSTS PREDICT THE US GENETIC TESTING MARKET NOW ABOUT 200 MILLION ANNUALLY COULD REACH 1 BILLION BY THE END OF THE DECADE LAST YEAR IG DOUBLED ITS SIZE BY ACQUIRING GENETIC DESIGN INC A GREENSBORO NC COMPANY WITH SPECIAL STRENGTH IN DNAMATCHING TESTS FOR USE IN PATERNITY AND FORENSICS CASES AND IN SELECTING ORGAN TRANSPLANT DONORS LAST FALL GENZYME BOUGHT IG'S MAIN COMPETITOR VIVIGEN INC SANTA FE NM AND COMBINED THE COMPANIES' OPERATIONS IG'S NATIONAL TESTING NETWORK INCLUDING VIVIGEN HAS ABOUT 15 OF THE MARKET ITS REVENUE IS EXPECTED TO EXCEED 100 MILLION IN 1995 COMPARED WITH 60 MILLION THIS YEAR THE ACQUISITIONS HAVE IMPROVED MARGINS THROUGH ECONOMIES OF SCALE AND IG EXPECTS TO REPORT ITS FIRST OPERATING PROFIT THIS YEAR HOWEVER COSTS FOR AMORTIZING GOODWILL FROM ACQUISITIONS ARE EXPECTED TO RESULT IN A NET LOSS ALONG WITH ITS BENEFITS GENETIC TESTING ALSO RAISES THORNY SOCIAL ISSUES RECENTLY IG'S BOARD HELD A DAYLONG MEETING SOLELY TO DISCUSS ETHICAL DILEMMAS CREATED BY GENETIC TESTING IG'S CONCERN ABOUT SUCH ISSUES HAS RISEN WITH ITS SIZE AND CLOUT SAYS ELLIOTT HILLBACK PRESIDENT AND CHIEF EXECUTIVE OFFICER THE TESTS CAN BRAND PEOPLE AS DISEASEPRONE DEPRIVING THEM OF JOBS AND INSURANCE THEY CAN CAUSE ANGUISH WHEN THEY REVEAL THAT PEOPLE WILL GET UNTREATABLE DISEASES PRENATAL FALSE POSITIVES CAN INDICATE A HEALTHY FETUS HAS SEVERE DEFECTS PROMPTING AN UNWARRANTED ABORTION THIS ISN'T DIAL SOAP SAYS ANN MERRIFIELD IG'S MARKETING DIRECTOR IG DOESN'T SELL SHE ADDS IT EDUCATES THE COMPANY'S PROMOTIONAL LITERATURE STICKS MOSTLY TO GUARDED FACTUAL STATEMENTS AVOIDING POTENTIALLY INFLAMMATORY RECOMMENDATIONS BUT THAT HASN'T SHIELDED IG FROM CRITICISM AS IT FOUND WITH ITS PRENATAL TEST TO CHECK FOR CHROMOSOMAL DEFECTS WITHIN TWO DAYS OF OBTAINING FETAL SAMPLES COMPARED WITH A WEEK OR MORE FOR THE CONVENTIONAL ALTERNATIVE SOME GENETICISTS SAY THE TEST WHICH EMPLOYS DNA PROBES TO FLAG DEFECTS SHOULDN'T BE OFFERED COMMERCIALLY BECAUSE ITS ACCURACY STILL IS BEING TESTED AGAINST THE TRADITIONAL METHOD OF EYEBALLING CHROMOSOMES THROUGH A MICROSCOPE IG REPLIES THAT IT ADVISES DOCTORS TO USE THE TEST ONLY IN SPECIAL CASES AND TO CONFIRM ITS RESULTS WITH TRADITIONAL METHODS MOST OF IG'S PRENATALTESTING BUSINESS ITS MAIN BREADWINNER IS BASED ON OLD TECHNOLOGY SUCH AS THE MICROSCOPEBASED SCANNING FOR GROSS CHROMOSOME DEFECTS MR HILLBACK SAYS BUT THE COMPANY'S MAIN GROWTH POTENTIAL LIES WITH NEWER TESTS TO DETECT SUBTLE GENETIC GLITCHES THAT CAN'T BE SEEN THROUGH THE MICROSCOPE SUCH TESTS WOULD MAKE IT POSSIBLE TO SCREEN LARGE NUMBERS OF PEOPLE FOR DOZENS OF MAJOR DISORDERS TRADITIONAL GENETIC TESTS CAN DETECT ONLY A HANDFUL OF DISEASES AND ARE USED MAINLY IN SPECIAL CASES SUCH AS CHECKING FOR DOWN'S SYNDROME IN FETUSES OF PREGNANT WOMEN OVER 35 IG'S TEST FOR CYSTIC FIBROSIS A FATAL DISORDER THAT CLOGS THE LUNGS WITH THICK MUCUS ILLUSTRATES THE POTENTIAL THE DISEASE RESULTS WHEN A SINGLE GENE IS DISABLED BY ONE OR MORE DEFECTS WHEN IG INTRODUCED A 300 TEST FOR THE DISORDER TWO YEARS AGO THE DNA PROBES COULD DETECT FOUR SUCH MUTATIONS ACCOUNTING FOR ABOUT 75 OF CASES NOW ITS 9750 TEST CAN DETECT 16 MUTATIONS ACCOUNTING FOR 88 OF CASES ABOUT 4 OF AMERICANS UNKNOWINGLY CARRY GENE DEFECTS FOR CYSTIC FIBROSIS A CHILD OF TWO SUCH CARRIERS HAS A 25 CHANCE OF GETTING A DOUBLE DOSE OF DEFECTIVE GENES THAT CAUSE THE DISEASE WITH EASYTOUSE TESTS LIKE IG'S WE'RE SEEING MUCH MORE TESTING BEFORE PREGNANCY BY PROSPECTIVE PARENTS WHO ARE WORRIED THEY MIGHT BE CARRIERS SAYS HARRY OSTRER A NEW YORK UNIVERSITY GENETICS EXPERT MOREOVER HE SAYS HEALTH INSURERS INCREASINGLY ARE WILLING TO PAY FOR SUCH CARRIER TESTS WHICH CAN PREVENT COSTLY CASES OF DISEASE BUT CARRIER TESTING ALSO RAISES TRICKY NEW ISSUES SAYS BARBARA HANDELIN AN IG RESEARCH MANAGER SUCH TESTS HAVE REVEALED THAT SOME CYSTIC FIBROSIS CARRIERS ACTUALLY HAVE MILD FORMERLY UNRECOGNIZED FORMS OF THE DISEASE THAT COMPLICATES COUNSELING FOR PEOPLE WHO GET TESTED A CRITICAL PART OF IG'S BUSINESS SHE ADDS IG'S BIGGEST WINNER IS EXPECTED TO BE A TECHNOLOGY TO FISH FETAL CELLS OUT OF A PREGNANT WOMAN'S BLOOD IT WOULD ELIMINATE THE 1IN200 RISK OF MISCARRIAGE FROM AMNIOCENTESIS IN WHICH THE WOMB IS PUNCTURED TO EXTRACT FETAL CELLS SUCH TESTS CURRENTLY ARE DONE IN FEWER THAN 8 OF PREGNANCIES MAINLY EXPECTANT MOTHERS OVER 35 WHOSE FETUSES HAVE A HIGHER RISK OF CHROMOSOMAL DEFECTS AFTER YEARS OF RESEARCH THE NEW TEST WORKS ONE IG TECHNICIAN ACCIDENTALLY DISCOVERED SHE WAS FIVE WEEKS PREGNANT WITH A BOY WHEN SHE DETECTED A MALE Y CHROMOSOME IN A SAMPLE OF HER OWN BLOOD USED IN A STUDY OF THE NEW METHOD SAYS KATHERINE KLINGER IG'S VICE PRESIDENT SCIENCE QUESTIONS REMAIN ABOUT THE TEST'S ACCURACY AND IG'S ABILITY TO OFFER IT CHEAPLY ENOUGH FOR WIDESPREAD USE BUT IF THE TEST IS TRULY SUCCESSFUL IT COULD SPAWN 500 MILLION ANNUALLY OF PRENATAL TESTS WITHIN A FEW YEARS SAYS PETER DRAKE AN ANALYST WITH VECTOR SECURITIES INTERNATIONAL THAT MAY PARTLY EXPLAIN IG'S KEEPING A LOW PROFILE HE ADDS GENZYME MAY SEEK 100 OWNERSHIP OF IG IF THE TEST PANS OUT AN ACQUISITION MORE FAVORABLE TO GENZYME IF IG'S STOCK PRICE DOESN'T RISE TOO MUCH ALTERNATIVELY HENRI TERMEER GENZYME'S CHIEF EXECUTIVE AND IG'S CHAIRMAN MAY SPIN OFF IG AS AN INDEPENDENT COMPANY EITHER WAY MR TERMEER KNOWN AS ONE OF BIOTECH'S CANNIEST CEOS IS GOING TO PLAY HIS CARDS VERY CLOSE TO THE VEST AND GET THE BEST DEAL POSSIBLE MR DRAKE SAYS 9306140102 930614 MEDIA COSBY PREPARES FOR AN ENCORE ON BID FOR NBC BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BILL COSBY IS MAKING A SECOND RUN AT BUYING NBC EVEN THOUGH ITS OWNER HAS SAID THE NETWORK ISN'T FOR SALE THE ENTERTAINER IS WORKING WITH INVESTMENT BANKER GOLDMAN SACHS & CO TO PUT TOGETHER A NEW BID TO BUY THE EMBATTLED NETWORK FROM GENERAL ELECTRIC CO ACCORDING TO INDUSTRY SOURCES MR COSBY HAD FIRST EXPLORED BUYING NBC THIS PAST FALL BUT THE EFFORT QUICKLY COLLAPSED IN PART BECAUSE IT DIDN'T COME NEAR THE 35 BILLION TO 4 BILLION THAT GE WAS SAID TO BE SEEKING BUT MR COSBY WHO HAD STARRED IN ONE OF THE MOST POPULAR NBC SHOWS IN THE NETWORK'S HISTORY IS NOW LINING UP A NEW GROUP OF INVESTORS AMONG THE HOLLYWOOD CROWD TO RAISE HIS BID ASKED TO COMMENT MR COSBY SEEMED TO ALL BUT CONFIRM HIS RENEWED INTEREST IN RELEASING A STATEMENT THAT SAID I AM NOT IN THE HABIT OF COMMENTING ON THINGS THAT ARE NOT FINISHED HE DECLINED TO ELABORATE BUT MR COSBY WHOSE PERSONAL WEALTH HAS BEEN ESTIMATED AT 300 MILLION COULD FACE A DIFFICULT STRUGGLE IN TRYING TO WIN NBC EVEN IF HE AND HIS BACKERS COULD RAISE ENOUGH ADDITIONAL INSTITUTIONAL FINANCING TO FLOAT THEIR BID ONLY TWO MONTHS AGO AFTER TWO YEARS OF PERSISTENT RUMORS THAT GE WANTED TO UNLOAD NBC GE CHAIRMAN JOHN F WELCH TOLD THE NBC NEWS DIVISION THAT THE NETWORK WASN'T FOR SALE GE LIKES NBC NBC IS NOT FOR SALE GE WANTS TO BE PART OF NBC MR WELCH SAID AT A DIVISION MEETING IN COMMENTS THAT THE NETWORK TOOK PAINS TO DISTRIBUTE TO THE PRESS NBC OFFICIALS SAID AT THE TIME THE TAKEOVER RUMORS WERE MAKING IT DIFFICULT TO CONDUCT BUSINESS AN NBC SPOKESWOMAN SAID YESTERDAY AS JACK WELCH HAS SAID NBC IS NOT FOR SALE' WE'RE LOOKING FORWARD TO A BRIGHT FUTURE THE LATEST DEVELOPMENT COULD REVIVE THE RUMOR MILL INDUSTRY ANALYSTS HAVE LONG VIEWED GE AS EAGER TO UNLOAD NBC AT THE RIGHT PRICE BECAUSE OF THE NETWORK'S PRECIPITOUS FALL FROM GRACE AFTER SIX YEARS AT THE TOP OF PRIMETIME RATINGS AND AT ONE POINT THE SOURCE OF MORE THAN HALF A BILLION DOLLARS A YEAR IN CASH NBC NOW OFTEN RUNS THIRD IN THE NIELSEN RATINGS LAST YEAR THE NETWORK HAD A SIZABLE LOSS IN MAY MR WELCH ADDRESSED NBC'S ANNUAL GATHERING OF AFFILIATES FOR THE FIRST TIME SINCE GE ACQUIRED NBC HE TOLD THEM THE COMPANY HAD COME TO THE REALIZATION THAT EVEN IN BAD TIMES THE NETWORK WAS A GOOD INVESTMENT GE MAY ALSO BE MINDFUL OF A RECENT RULING BY THE FEDERAL COMMUNICATIONS COMMISSSION THAT POTENTIALLY PAVES THE WAY FOR NETWORKS TO ENTER THE LUCRATIVE BUSINESS OF SYNDICATING RERUNS AND OTHER PROGRAMMING TO LOCAL STATIONS BUT MANY INDUSTRY PEOPLE STILL THINK GE WOULD SELL IF IT CAN TAKE OUT ENOUGH MONEY TO AVOID AN EMBARRASSING WRITEDOWN THE COMPANY ACQUIRED NBC AND THENPARENT RCA CORP IN 1986 FOR 64 BILLION A PRICE THAT LOOKED HIGH IN HINDSIGHT AS CABLE PROLIFERATED AND ALL THREE MAJOR NETWORKS LOST AUDIENCE SHARE IN THE PAST YEAR RUMORS HAVE HAD PARAMOUNT COMMUNICATIONS INC STUDYING NBC ITS OFFICIALS TOOK A LOOK BUT FELT GE'S ASKING PRICE WAS TOO HIGH AND FORMER FOX INC CHAIRMAN BARRY DILLER GETTING READY TO MAKE A RUN MR DILLER ENDED UP INVESTING IN QVC NETWORK INC MR COSBY HOWEVER HAS KEEN PERSONAL INTEREST IN TURNING AROUND NBC HE HAS SAID HE FEELS EXTRAORDINARY LOYALTY TO NBC BECAUSE IT GAVE HIM HIS BIG SHOWBUSINESS BREAK BY CASTING HIM OPPOSITE ROBERT CULP IN THE MID1960S SERIES I SPY FOR EIGHT YEARS THE COSBY SHOW WAS ONE OF THE MOST POPULAR SITCOMS ON TELEVISION AND MR COSBY REAPED A TREMENDOUS FORTUNE WHEN THE SHOW'S RERUNS WERE SYNDICATED TO LOCAL STATIONS THE STAR RETURNS TO NBC NEXT FALL IN A DETECTIVE MOVIE THAT MAY BE SPUN OFF INTO A WEEKLY SERIES IN ADDITION MR COSBY HAS EXPRESSED SOME RESERVATIONS ABOUT GE'S PAST STEWARDSHIP OF THE NETWORK WHEN HE MADE A SPONTANEOUS APPEARANCE AT THE NBC AFFILIATES' RECENT MEETING IN ORLANDO FLA TO DELIVER A BRIEF PEP TALK HE SAID OF NBC PRESIDENT ROBERT WRIGHT THE MAN GE INSTALLED TO RUN THE NETWORK WHEN HE FIRST CAME ONBOARD HE WAS A BEANCOUNTER BUT HE'S BEEN TAUGHT YOU ARE LOOKING AT A BEANCOUNTER WHO IS A HUMAN BEING NOW AFFILIATES WHO ALMOST WORSHIP MR COSBY GAVE HIM TWO STANDING OVATIONS IN HIS FIVEMINUTE SPEECH AT THE MAY SESSION MR COSBY BROUGHT THE HOUSE DOWN WHEN HE TOLD THEM I WANT TO SEE THIS PEACOCK FLY AGAIN 9306140101 930614 PHILADELPHIA SUBURBAN'S OFFER BRYN MAWR PA PHILADELPHIA SUBURBAN CORP SAID IT CLOSED ITS JUNE 1 OFFER OF 100000 SHARES TO CUSTOMERS OF ITS PHILADELPHIA SUBURBAN WATER CO UNIT EARLY BECAUSE OF AN OVERSUBSCRIPTION THE OFFERING PERIOD HAD BEEN SET TO EXPIRE TOMORROW OR UNTIL ALL THE SHARES WERE SOLD THE 100000SHARE OFFERING TO PHILADELPHIA SUBURBAN WATER CUSTOMERS IS THE FIRST OF THREE SIMILAR OFFERINGS THIS YEAR THE NEXT TWO OFFERING PERIODS WILL BE SEPT 115 AND DEC 9306140100 930614 GTE TO SELL OKLAHOMA FACILITIES IRVING TEXAS GTE CORP'S LOCAL TELEPHONE BUSINESS AGREED TO SELL FACILITIES COVERING 12000 CUSTOMER PHONE LINES IN OKLAHOMA'S PANHANDLE TO EAGLENET INC TERMS OF THE TRANSACTION WEREN'T DISCLOSED GTE HAS BEEN SELLING SMALLER PROPERTIES AS IT FOCUSES ITS LOCAL PHONE OPERATIONS IN LARGER METROPOLITAN AREAS EAGLENET IS A SUBSIDIARY OF PANHANDLE TELEPHONE COOPERATIVE INC GUYMON OKLA 9306140099 930614 FOREIGN EXCHANGE CURRENCIES OF CANADA AUSTRALIA LIKELY TO HEAD LOWER OVER THE NEXT FEW WEEKS BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK WHILE DOLLARBUYERS ARE WAITING ANXIOUSLY FOR TOMORROW'S CONSUMER PRICE REPORT INVESTORS IN THE CURRENCIES OF CANADA AND AUSTRALIA HAVE THEIR OWN REASONS TO KEEP AN EYE ON THE DATA BOTH CURRENCIES ARE PROBABLY HEADED LOWER OVER THE NEXT FEW WEEKS TRADERS AND ANALYSTS SAY AND A PICKUP IN US INFLATION WOULD ACCELERATE THE DECLINE DEALERS ARE PARTICULARLY SENSITIVE TO INFLATION NEWS NOW BECAUSE RISING PRICES COULD PROMPT THE FEDERAL RESERVE BOARD TO RAISE INTEREST RATES MAKING DOLLARDENOMINATED ASSETS MORE ATTRACTIVE COMPARED WITH EUROPEAN INVESTMENTS STEADY PRICES REFLECTED IN THE MAY PRODUCER PRICE INDEX RELEASED FRIDAY PROMPTED A SELLOFF IN THE US CURRENCY BUT BY THE END OF THE DAY IT HAD RECOVERED TO TRADE AT 16275 MARKS AND 10620 YEN COMPARED WITH 16303 MARKS AND 10610 YEN LATE THURSDAY IN NEW YORK ABOUT NOON MONDAY IN TOKYO THE DOLLAR RESUMED ITS DECLINE AGAINST THE YEN TRADING AT 10548 YEN AND AT 16254 MARKS PRICE STABILITY IN THE US SHOULD HELP THE CANADIAN AND AUSTRALIAN DOLLARS OVER THE MEDIUM TERM THAT'S BECAUSE INVESTORS ARE ATTRACTED TO THE DOLLARBLOC COUNTRIES FOR THE EXTRA YIELD THEY OFFER OVER US RETURNS SAYS ANITA LAURIA ECONOMIST AT SALOMON BROTHERS INC BUT AS THE YIELD GAP NARROWS THE APPEAL OF THOSE COUNTRIES' SECURITIES EVAPORATES AND NEITHER COUNTRY IS LIKELY TO RAISE RATES TO KEEP PACE WITH THE US THE ECONOMIES OF CANADA AND AUSTRALIA ARE NOT JUSTIFYING TIGHTENING SHE SAYS ON THE CONTRARY THERE HAS BEEN SPECULATION ABOUT AN INTEREST RATE CUT IN AUSTRALIA ALTHOUGH MARKET PLAYERS SAY THE CURRENCY'S FRAGILITY PRECLUDES MONETARY EASING AS OF FRIDAY 10YEAR DEBT INSTRUMENTS YIELDED 763 IN AUSTRALIA 749 IN CANADA AND 596 IN THE US NINETYDAY BILLS YIELDED 523 IN AUSTRALIA 476 IN CANADA AND 312 IN THE US BOTH CURRENCIES ARE ALSO UNDER PRESSURE FROM DOMESTIC FORCES UNRELATED TO THE US IN PARTICULAR BOTH ARE PLAGUED WITH DEFICIT WORRIES FOR THE AUSTRALIAN DOLLAR DEALERS SEE LITTLE ROOM FOR IMPROVEMENT BEFORE THE GOVERNMENT UNVEILS A NEW BUDGET AUG 17 UNTIL THEN DEALERS EXPECT THE CURRENCY TO WEAKEN FURTHER PROBABLY TO AROUND 6630 US CENTS ACCORDING TO AN AUSTRALIAN BANK TRADER LATE FRIDAY IN NEW YORK THE CURRENCY TRADED AT 6791 US CENTS COMPARED WITH 6755 CENTS AT THE END OF THE PREVIOUS WEEK MARKET PLAYERS ALSO HAVE AN EYE ON CANADIAN BUDGETS WHOSE OUTLOOK IS CLOUDED BY POLITICAL AS WELL AS ECONOMIC ISSUES LAST WEDNESDAY THE CANADIAN DOLLAR FIRMED ON A REPORT BY MOODY'S INVESTORS SERVICE INC WHICH SAID CANADA'S DEBT BURDEN IS COMPARABLE WITH THAT OF OTHER TRIPLEA RATED NATIONS BUT WHILE THE AUSTRALIAN GOVERNMENT IS COMMITTED TO DEFICITCUTTING UNCERTAINTY ABOUT THE OUTCOME OF CANADA'S NATIONAL ELECTIONS TO BE HELD BY NOVEMBER HAS MARKET PARTICIPANTS WORRIED SAYS CARL WEINBERG CHIEF ECONOMIST AT HIGH FREQUENCY ECONOMICS A NEW YORK CONSULTING COMPANY IF THE PROGRESSIVE CONSERVATIVE PARTY IS OUSTED A MORE FREESPENDING OPPOSITION COALITION MIGHT LOOSEN THE FEDERAL GOVERNMENT'S GRIP ON THE BUDGET HE SAYS AND WHILE THE FEDERAL DEBT HAS DECLINED AS A PERCENTAGE OF CANADA'S GROSS DOMESTIC PRODUCT PROVINCIAL DEBT HAS RISEN MR WEINBERG ADDS DEALERS ARE PREPARED TO TAKE THE US DOLLAR AT LEAST TO C130 AND POSSIBLY TO C132 OVER THE NEXT SIX WEEKS SAYS A CANADIAN BANK DEALER 9306140098 930614 INTERNATIONAL WESTERN GERMANY'S RETAIL SALES WIESBADEN GERMANY RETAIL SALES IN WHAT USED TO BE WEST GERMANY DROPPED A REAL OR PRICEADJUSTED 14 IN APRIL FROM MARCH AND FELL 2 FROM A YEAR AGO ADJUSTED FOR SEASONAL AND CALENDARRELATED FACTORS RETAIL TURNOVER ROSE A REAL 02 FROM MARCH ACCORDING TO THE FEDERAL STATISTICS OFFICE