UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST SINGLE STATE MUNI BOND WEDNESDAY'S CLOSE EASSUMES RIGHTS OFFERING FULLY SUBSCRIBED VCONVERTED AT COMMERCIAL RAND RATE YIN CANADIAN DOLLARS ZNOT TRADING ON ANY EXCHANGE N/ANOT AVAILABLE OR NOT APPLICABLE 9306140096 930614 CREDIT MARKETS JUNK OFFERINGS HIT FEVERISH PACE AS NEW CASH FLOODS MUTUAL FUNDS BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL AS INVESTORS SHOVEL CASH INTO JUNK BOND MUTUAL FUNDS COMPANIES ARE ISSUING HIGHYIELD JUNK DEBT AT A FEVERISH PACE NEW PUBLIC OFFERINGS OF JUNK BONDS COULD SOAR TO A RECORD 45 BILLION THIS YEAR FAR ABOVE LAST YEAR'S MASSIVE 37 BILLION SAYS DUFF & PHELPS/MCM A CREDITRATING CONCERN TO PUT THAT IN PERSPECTIVE EVEN IN THE HEADIEST DAYS OF THE MID1980S ANNUAL ISSUANCE NEVER TOPPED 30 BILLION YET IN 5 1/2 MONTHS THIS YEAR INVESTORS HAVE SNAPPED UP NEARLY 30 BILLION OF NEW PUBLICLY TRADED AND PRIVATE DEBT WITH LOW CREDIT RATINGS OR NONE AT ALL NEW JUNK IS FINDING A HOME BECAUSE SMALL INVESTORS GRASPING FOR HIGHER YIELDS ARE FLOODING JUNK BOND MUTUAL FUNDS WITH RECORD AMOUNTS OF NEW CASH BY SOME ESTIMATES MUTUAL FUNDS NOW SOAK UP NEARLY TWOTHIRDS OF ALL NEW JUNK ISSUES COMING TO MARKET ASSETS OF JUNK MUTUAL FUNDS HAVE SOARED TO SOME 40 BILLION FROM 25 BILLION AT THE BEGINNING OF 1992 WHEN JUNK BOND ISSUANCE TOOK OFF ACCORDING TO AMG DATA SERVICES OF ARCATA CALIF A FIRM THAT TRACKS MUTUAL FUND FLOWS WHILE SOME MARKET WATCHERS CONTEND THAT THE JUNK BOND MARKET ISN'T DANGEROUSLY HOT JUST YET MANY AGREE THAT THE TEMPERATURE IS RISING THERE ARE NO SIGNS YET THAT THE MARKET IS TOPPING CONTENDS CATHERINE MONTGOMERY WHO HEADS HIGHYIELD RESEARCH AT DONALDSON LUFKIN & JENRETTE SECURITIES CORP BUT PRICES HAVE BEEN BID UP SO AGGRESSIVELY THAT INVESTORS ARE WILLING TO ACCEPT A BENCHMARK 9 YIELD INSTEAD OF 10 AS WE SAW EARLIER THIS YEAR THE MARKET FOR NEW JUNK BONDS IS OVERHEATED BECAUSE OF THE GROWING DEMAND FROM MUTUAL FUNDS SAYS RICHARD A HOCKER MANAGING DIRECTOR OF PENN CAPITAL MANAGEMENT OF CHERRY HILL NJ WHICH MANAGES 150 MILLION IN JUNK BONDS YIELDS FOR NEW JUNK ARE PROBABLY 3/4 PERCENTAGE POINT BELOW WHERE THEY SHOULD BE HE SAYS AND AS CASHSWAMPED MUTUAL FUND MANAGERS SCURRY TO FIND PLACES TO INVEST THEY MAY BE SETTLING FOR YIELDS SO LOW THAT THEY ARE SETTING THEMSELVES UP FOR LOSSES IF INTEREST RATES RISE THIS SHOWS THE CLASSIC INEFFICIENCY OF THE JUNK BOND MARKET THAT WE SAW IN THE LATE 1980S BEFORE JUNK PRICES COLLAPSED HE WARNS MANY COMPANIES TURN TO JUNK BONDS SIMPLY TO REFINANCE HIGHERCOUPON BANK DEBT OR OLDER JUNK BONDS STRETCHING OUT THE MATURITY AND WRIGGLING OUT OF INCONVENIENT DEBT AGREEMENTS YET SOME ANALYSTS ARE BEGINNING TO QUESTION THE QUALITY OF MANY NEW DEALS COMING TO MARKET IT'S A SELLER'S MARKET SAYS KINGMAN PENNIMAN HEAD OF RESEARCH FOR DUFF & PHELPS/MCM BUT PEOPLE FORGET THAT WE GOT INTO TROUBLE LAST TIME BECAUSE THERE WAS TOO MUCH CASH SEEKING TOO HIGH A YIELD THE SHORTEST MEMORIES MAY WELL BE AMONG MUTUAL FUND MANAGERS MUTUAL FUNDS HAVE DOMINATED NEW JUNKISSUE PURCHASES SINCE 1990 WHEN NEW REGULATIONS MADE IT HARDER FOR INSURERS BANKS AND THRIFTS TO HOLD DEBT WITH CREDIT RATINGS DEEMED BELOW INVESTMENT GRADE YET AS INTEREST RATES HAVE FALLEN AND COMPANIES HAVE REFINANCED PORTFOLIO MANAGERS HAVE BEEN STRUGGLING TO REPLACE THOSE RICH YIELDS NEW MONEY TO INVEST MAKES THE PROBLEM ALL THE MORE PRESSING AS IDLE CASH DRAGS DOWN FUNDS' PERFORMANCES NET NEW CASH FLOWS INTO JUNK MUTUAL FUNDS HAVE BEEN RUNNING AT A RECORD 250 MILLION A WEEK FOR THE PAST FOUR WEEKS SAYS ROBERT ADLER OF AMG DATA MUCH OF IT YET TO BE INVESTED AT THE SAME TIME THE EARLY WARNING SIGNS ARE MULTIPLYING THE SPREAD BETWEEN JUNK BOND YIELDS AND YIELDS ON TREASURY BOND ISSUES OF SIMILAR MATURITY HAS NARROWED DRASTICALLY AS INTEREST RATES HAVE FALLEN AND INVESTORS WORRY LESS ABOUT CREDIT QUALITY THE THINNESS OF THAT SPREAD CURRENTLY ABOUT FOUR PERCENTAGE POINTS MEANS THAT EVEN A SMALL INCREASE IN OVERALL INTEREST RATES AND A COINCIDENT WIDENING OF THE SPREAD BETWEEN GOVERNMENT SECURITIES AND LOWGRADE CORPORATE BONDS WOULD CAUSE SOME RECENT JUNK ISSUES TO DROP SHARPLY IN PRICE INCREASINGLY TOO HIGHYIELD DEBT IS BEING OFFERED NOT TO REFINANCE EXISTING JUNK OR BANK DEBT BUT FOR EXPANSION OR OTHER PURPOSES REFINANCINGS REPRESENT ONLY ONETHIRD OF NEW ISSUES EXPECTED THIS YEAR DOWN FROM ABOUT 80 LAST YEAR ACCORDING TO SALOMON BROTHERS INC AND A NUMBER OF HIGHYIELD ISSUERS THAT ISSUED SECURED FINANCINGS LAST YEAR ARE BACK IN THE MARKET AGAIN THIS TIME SELLING BONDS OF LOWER CREDIT QUALITY THAT ARE SUBORDINATED TO EXISTING BOND ISSUES THAT IS HAVING A LESSER CLAIM UPON THE COMPANY'S RESOURCES AMONG THE DOUBLEDIPPERS AMERICAN STANDARD INC CENTURY COMMUNICATIONS CORP CLARK OIL & REFINING CORP IVEX PACKAGING CORP AND BELL & HOWELL CO ACCORDING TO DATA COMPILED BY DUFF & PHELPS/MCM CONSIDER TOO HOW MANY COMPANIES ARE PILING ON MORE DEBT AT THE HOLDINGCOMPANY LEVEL WHERE BONDHOLDERS' SECURITY IS OFTEN LIMITED TO THE STOCK OF OPERATING SUBSIDIARIES MOST OF THESE NEW HOLDINGCOMPANY ISSUES DEFER CURRENT INTEREST PAYMENTS WITH ZEROCOUPON SECURITIES OR PAYINKIND BONDS THAT PAY INTEREST IN THE FORM OF ADDITIONAL SECURITIES SOME ISSUERS LIKE GAYLORD CONTAINER CORP THE PAPER AND PACKAGING COMPANY ARE HOPING TO WEATHER A ROUGH PATCH OF CYCLICALLY LOW EARNINGS OR INDUSTRY OVERCAPACITY GAYLORD'S RECENT ZEROCOUPON ISSUE PROVED SO POPULAR THAT THE ISSUE'S SIZE WAS INCREASED TWICE EVENTUALLY RAISING 300 MILLION INSTEAD OF THE 200 MILLION ENVISIONED MOST ZEROCOUPON ISSUERS INCLUDING FINLAY ENTERPRISES INC AND REVLON INC ARE SO OPTIMISTIC ABOUT BRIGHTENING PROSPECTS AND CONTINUED HIGH STOCK PRICES THAT THEY INSIST ON SOCALLED IPO CLAWBACKS GIVING THE COMPANY THE RIGHT TO BUY BACK ITS JUNK AT A MODEST PREMIUM SHOULD THE COMPANY DO AN INITIAL PUBLIC OFFERING OF STOCK WITHIN TWO OR THREE YEARS ENTHUSIASM FOR HIGH YIELDS HAS EVEN INFECTED UNDERWRITERS WITNESS THE HUGE VOLUME OF SHELF REGISTRATIONS WHEN AN UNDERWRITER TAKES AN ISSUER'S FILING OFF THE SHELF TO BRING IT TO MARKET IT PAYS THE ISSUING COMPANY FOR THE SECURITIES BEFORE IT TRIES TO SELL THEM TAKING ON THE FULL RISK OF RESELLING THE SECURITIES AT A PROFIT ORIGINALLY INSTITUTED TO EASE THE WAY TO MARKET FOR LARGE CORPORATIONS WITH THE HIGHEST CREDIT QUALITY SHELF REGISTRATIONS FOR JUNK BOND ISSUES NOW STAND AT 19 BILLION ACCORDING TO MR PENNIMAN OF DUFF & PHELPS/MCM IT'S NEVER BEEN THAT HIGH HE SAYS UNDERWRITING JUNK SHELF FILINGS IS ALREADY CAUSING SOME FIRMS PAIN BY TAKING ON SOME CENTURY COMMUNICATIONS BONDS BEFORE THE RECENT CABLESTOCK DOWNDRAFT LEHMAN BROTHERS IS BELIEVED BY TRADERS TO HAVE LOST AS MUCH AS 11 MILLION UNDERWRITING THE ZEROCOUPON ISSUE WHICH RAISED 176 MILLION FOR CENTURY LAST WEEK A LEHMAN SPOKESWOMAN DECLINED TO COMMENT YET THE DEALS KEEP COMING SO FAST THAT MANY PROSPECTIVE BUYERS HARDLY HAVE TIME TO HEAR COMPANIES' PRESENTATIONS LET ALONE READ THE OFFERING DOCUMENTS SEVEN PROSPECTIVE JUNK ISSUERS ARE EXPECTED TO MAKE PRESENTATIONS TO POTENTIAL INVESTORS TODAY WITH ANOTHER HALFDOZEN COURTING BUYERS LATER IN THE WEEK THE PRICES OF TREASURY NOTES AND BONDS JUMPED SHARPLY ON FRIDAY AS INVESTORS OVERCAME FOR THE MOMENT WORRIES ABOUT RISING INFLATION AND A POSSIBLE TIGHTENING OF MONETARY POLICY THE BENCHMARK 30YEAR TREASURY BOND JUMPED NEARLY 7/8 POINT OR NEARLY 875 FOR A BOND WITH A 1000 FACE VALUE TO 104 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS PRICE FELL TO 680 FROM 687 ON THURSDAY OTHER MATURITIES ROSE SHARPLY AS WELL THE 10YEAR NOTE FOR EXAMPLE JUMPED MORE THAN 5/8 POINT TO 102 1/32 TO YIELD 596 DOWN FROM 605 THE WAY WAS CLEARED FOR TREASURYS TO RALLY FRIDAY BY THE LABOR DEPARTMENT'S REPORT THAT SHOWED THAT PRODUCER PRICES WERE UNCHANGED IN MAY AND WERE UP ONLY 02 WHEN THE VOLATILE FOOD AND ENERGY COMPONENTS WERE EXCLUDED THE FIGURES WERE IN LINE WITH MOST ECONOMISTS' FORECASTS BUT MORE IMPORTANT THEY MEANT THE FEDERAL RESERVE WAS LESS LIKELY TO MOVE TO RAISE SHORTTERM INTEREST RATES IN ORDER TO BATTLE INFLATIONARY PRESSURES THOMAS T VOGEL CONTRIBUTED TO THIS ARTICLE 9306140095 930614 POLITICS & POLICY AMID CLAMOR FOR CAMPAIGN FINANCE REFORM LAWMAKERS ENJOY THE PERKS WHILE THEY CAN BY JILL ABRAMSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRODDED BY MOUNTING PUBLIC OUTRAGE AND OUTSIDER ROSS PEROT WASHINGTON'S POLITICAL LEADERS WERE SUPPOSED TO GET SERIOUS ABOUT CHANGING THE CAPITAL'S MONEY CULTURE THIS YEAR BUT THE TIMES ARE NOT YET ACHANGING FINANCIAL DISCLOSURE FORMS FOR 1992 RELEASED FRIDAY BY MEMBERS OF THE HOUSE AND SENATE REVEAL THAT CONGRESSIONAL PERKS ARE STILL ALIVE AND WELL MANY LAWMAKERS ARE STILL TAKING TRIPS TO EXOTIC OR AT LEAST SUNNYDESTINATIONS AND ACCEPTING OTHER GIFTS PAID FOR BY SPECIAL INTEREST GROUPS A SUBSTANTIAL NUMBER ARE ALSO STILL RECEIVING SPEAKING FEES FROM INDUSTRY AND LABOR GROUPS ALTHOUGH THESE FEES CAN NO LONGER BE POCKETED FOR PERSONAL USE SPECIALINTEREST FUNDRAISING IS ALSO IN HIGH GEAR DESPITE PRESIDENT CLINTON'S INTRODUCTION OF LEGISLATION TO CUT BACK THE ROLE OF POLITICAL ACTION COMMITTEES AND END THE USE OF SOFT MONEY THE UNRESTRICTED CONTRIBUTIONS RAISED BY THE POLITICAL PARTIES OUTSIDE THE FEDERAL ELECTION LAWS PAC MANAGERS AND OTHER WELLHEELED INTERESTS ARE STILL BEING SOLICITED FOR HEFTY SUMS FOR LAWMAKERS THERE IS AN ATMOSPHERE OF GETTING AWAY WITH WHATEVER THEY CAN SAYS ELLEN MILLER OF THE CENTER FOR RESPONSIVE POLITICS THEY HAVE BECOME SO INURED TO BUSINESS AS USUAL THAT THEY DON'T EVEN SEE THE CONFLICT THEY ARE HOWEVER BECOMING MORE SKITTISH WHEN THEIR MONEYRAISING TACTICS ARE PUBLICIZED FOR INSTANCE NEW YORK SEN DANIEL PATRICK MOYNIHAN ABRUPTLY CANCELED A JULY BASH AT NEW YORK'S RAINBOW ROOM AFTER NEWS STORIES LAST WEEK REPORTED ON THE UNUSUALLY HEAVYHANDED INVITATION THAT WENT OUT FROM HIS FUNDRAISERS THE INVITATION POINTED OUT HIS NEW ROLE AS CHAIRMAN OF THE SENATE FINANCE COMMITTEE NOW SHAPING THE PRESIDENT'S ECONOMIC PACKAGE AND HIT UP PACS TO CONTRIBUTE AS MUCH AS 5000 BASICALLY HE READ ABOUT THE EVENT IN THE NEWSPAPER AND DECIDED TO CANCEL EXPLAINS WILLIAM T CUNNINGHAM A CONSULTANT TO THE MOYNIHAN CAMPAIGN HE DIDN'T WANT THIS CLOUD THIS DISTRACTION MR CUNNINGHAM EMPHASIZES THAT SEN MOYNIHAN WHO FACES REELECTION NEXT YEAR FAVORS PUBLIC FINANCING OF CAMPAIGNS BUT WILL ACCEPT CONTRIBUTIONS FROM PACS AND WEALTHY INDIVIDUALS UNTIL THE CAMPAIGN FINANCE LAWS ARE CHANGED YOU HAVE TO RAISE MONEY IF YOU'RE GOING TO RUN A CAMPAIGN THE CONSULTANT SAYS EVEN PRESIDENT CLINTON WHO HAS PROPOSED TO REFORM THE SYSTEM IS PLAYING THE BIGMONEY GAME FOR EXAMPLE PACS ARE BEING ASKED TO COUGH UP 15000 TO ATTEND THE PRESIDENT'S DINNER A 2 MILLION FUNDRAISING DINNER ON JUNE 28 SPONSORED BY THE DEMOCRATIC PARTY AND MODELED AFTER THE REPUBLICANS' CHIEF ANNUAL FUNDRAISER WHEN THEY CONTROLLED THE WHITE HOUSE MR CLINTON CANCELED PLANS TO HOST A MORNINGAFTER BREAKFAST FOR BIG DINNER DONORS AFTER NEWS STORIES QUESTIONED THE PROPRIETY OF HOLDING IT IN THE WHITE HOUSE BUT HE WILL STILL ATTEND THE DINNER AND ADMINISTRATION BIGWIGS INCLUDING WHITE HOUSE CHIEF OF STAFF THOMAS MCLARTY WILL PARTICIPATE IN A DAY OF ISSUE BRIEFINGS FOR DINNER DONORS DEMOCRATIC NATIONAL COMMITTEE SPOKESWOMAN CATHERINE MOORE SAYS THAT WE ARE VERY SUPPORTIVE OF THE PRESIDENT'S CAMPAIGN FINANCE REFORM PROPOSAL EVEN THOUGH SHE ESTIMATES IT COULD CUT DNC REVENUE AS MUCH AS 40 BUT IN THE MEANTIME WE CANNOT UNILATERALLY DISARM SHE ADDS THAT MEANS THE PARTY WILL CONTINUE TO SOLICIT PAC AND SOFTMONEY CONTRIBUTIONS ALTHOUGH SHE STRESSES THAT DNC CHAIRMAN DAVID WILHELM IS PUSHING HARD TO INCREASE THE PARTY'S SMALLDONOR BASE AMONG MEMBERS OF CONGRESS SOME OF THE USUALLY MOSTACTIVE BIGMONEY PLAYERS CUT BACK A LITTLE LAST YEAR SENATE GOP LEADER ROBERT DOLE OF KANSAS FOR EXAMPLE DIDN'T MATCH HIS 90000 IN SPEAKING FEES IN 1991 EVEN SO HE STILL GAVE ABOUT 30 SPEECHES THAT NETTED MORE THAN 60000 FOR VARIOUS CHARITIES SPONSORS INCLUDED THE PHARMACEUTICAL MANUFACTURERS ASSOCIATION AND THE AMERICAN BANKERS ASSOCIATION WHICH ALSO FERRIED THE SENATOR TO FLORIDA A DOLE SPOKESMAN SAYS SPEAKING BEFORE GROUPS WITH SPECIFIC LEGISLATIVE INTERESTS POSES NO CONFLICT OF INTEREST ADDING IF KANSAS CHARITIES CAN BENEFIT ALL THE BETTER LAST YEAR'S SENATE HONORARIUM LEADER UTAH REPUBLICAN ORRIN HATCH ALSO CUT BACK HE GENERATED 56000 FOR VARIOUS UTAH CHARITIES BY SPEAKING TO AN ARRAY OF INDUSTRY GROUPS COMPARED WITH 92750 IN 1991 THE LAST YEAR SENATORS WERE ALLOWED TO KEEP PART OF THEIR SPEECH EARNINGS THE ALLTIME HOUSE HONORARIUM CHAMP WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI ALSO WEIGHED IN WITH A SLIMMER SPEAKING AND TRAVEL PORTFOLIO IN 1992 AN AVID GOLFER THE ILLINOIS DEMOCRAT'S DISCLOSURES ARE USUALLY BRIMMING WITH SPECIALINTEREST INVITATIONS TO THE NATION'S MOST EXCLUSIVE GOLF RESORTS LAST YEAR FACING AN INVESTIGATION INTO HIS OFFICE'S FINANCES HE WAS LESS ON THE GO BUT STILL GENERATED A ROBUST 80500 FOR FAVORED CHARITIES THROUGH SPEECHES TO 40 INDUSTRY GROUPS AND COMPANIES MANY OF THOSE HAVE LEGISLATIVE INTERESTS BEFORE REP ROSTENKOWSKI'S COMMITTEE INCLUDING PHILIP MORRIS COS AND AN ARRAY OF HEALTH GROUPS HE WAS A GUEST AT THE DANNY THOMPSON MEMORIAL CHARITY GOLF TOURNAMENT IN IDAHO WHERE HE PICKED UP A GIFT OF GOLF CLOTHING VALUED AT LESS THAN 250 AND TRAVELED TO SUCH GOLFFRIENDLY LOCALES AS PALM SPRINGS CALIF AND PALM BEACH FLA COURTESY OF NORTHERN TRUST CO AND THE FUTURES INDUSTRY ASSOCIATION RESPECTIVELY A SPOKESMAN FOR THE CHAIRMAN SAYS THE TRIPS ARE LEGAL AND PROPER IF YOU LOOK AT THE SPEECHES HE GIVES HE DOESN'T CATER TO THESE GROUPS HE TELLS THEM TO ACCEPT DIFFICULT REALITIES REP PAT SCHROEDER MEANWHILE GENERATED 72850 IN SPEAKING FEES MOSTLY FOR EDUCATIONAL AND WOMEN'S GROUPS SHE THINKS GIVING THESE SPEECHES HELPS HER TO SPREAD HER MESSAGE SAYS A SPOKESMAN FOR THE COLORADO DEMOCRAT BUT CRITICS SEE THESE ALLEXPENSEPAID TRIPS AS JUST ANOTHER WAY THAT SPECIAL INTERESTS CURRY FAVOR WITH LAWMAKERS THESE ARE NOT FRIENDLY TRIPS THEY ARE PURPOSEFUL TRIPS SAYS JOAN CLAYBROOK OF PUBLIC CITIZEN THE RALPH NADERAFFILIATED ACTIVIST GROUP TRADE GROUPS AND CORPORATIONS SPEND HUGE AMOUNTS ON THESE EXCURSIONS AND THEY WANT SOMETHING BACK EARLIER THIS YEAR THE SENATE PASSED LEGISLATION THAT WOULD REQUIRE LOBBYISTS TO DISCLOSE FAR MORE INFORMATION ABOUT THEIR GIFTS TO LEGISLATORS WHILE PRESIDENT CLINTON'S REFORM PROPOSAL WOULD PROHIBIT THEM FROM CONTRIBUTING TO LAWMAKERS WHOM THEY LOBBY SEN FRANK LAUTENBERG THE NEW JERSEY DEMOCRAT IS ALSO CRAFTING A BILL THAT WOULD PROHIBIT SPECIAL INTEREST GROUPS FROM PAYING FOR SUCH EXPENSIVE ITEMS AS GREENS FEES WHEN LAWMAKERS TRAVEL ON THEIR TAB HOWEVER ALL THESE BILLS ARE A LONG WAY FROM ENACTMENT IN THE MEANTIME IT'S BUSINESS AS USUAL 9306140094 930614 WHAT'S NEWS WORLDWIDE THE US SPEARHEADED AN EFFORT BY UN FORCES TO DISARM A SOMALI WARLORD US AC130 ATTACK AIRCRAFT FIRED AT SELECTED TARGETS IN SOMALIA'S CAPITAL THROUGHOUT THE WEEKEND IN THREE CONSECUTIVE NIGHTS OF RAIDS IN MOGADISHU THE US GUNSHIPS HIT WEAPONS WAREHOUSES VEHICLE STORAGE SITES AND RADIO FACILITIES CONTROLLED BY CLAN LEADER AIDID THE ATTACKS WERE IN RESPONSE TO A JUNE 5 AMBUSH IN WHICH 23 PAKISTANI PEACEKEEPERS WERE KILLED AIDID SAID THAT THE US SHOULD STOP KILLING SOMALI PEOPLE YESTERDAY PAKISTANI PEACEKEEPING TROOPS FIRED ON CROWDS OF PROAIDID DEMONSTRATORS PROTESTING THE AIR RAIDS AT LEAST 20 PEOPLE WERE KILLED KIM CAMPBELL WAS SELECTED TO BE CANADA'S NEXT PRIME MINISTER THE CANADIAN DEFENSE MINISTER A 46YEAROLD LAWYER FROM BRITISH COLUMBIA IS TO BECOME THE NATION'S FIRST WOMAN PRIME MINISTER THIS MONTH SUCCEEDING BRIAN MULRONEY SHE WAS ELECTED LEADER OF THE RULING PROGRESSIVE CONSERVATIVE PARTY DEFEATING ENVIRONMENT MINISTER JEAN CHAREST ON A SECOND BALLOT THE CONSERVATIVES ARE COUNTING ON CAMPBELL TO LEAD THEM TO VICTORY IN THE NEXT ELECTION WHICH MUST BE HELD BY NOVEMBER CAMPBELL STRONGLY SUPPORTS THE NORTH AMERICAN FREE TRADE AGREEMENT AND HAS SUGGESTED BROADENING THE PACT TO INCLUDE ASIAN COUNTRIES SERB ROCKETS SMASHED INTO A HOSPITAL IN THE EASTERN BOSNIAN ENCLAVE OF GORAZDE KILLING AT LEAST 52 PEOPLE AS GROUND FORCES CLOSED IN ON THE MUSLIM TOWN RADIO REPORTS SAID IN CENTRAL BOSNIA TWO VILLAGES WERE BURNED DOWN IN MUSLIMCROAT CLASHES CLINTON HOPES TO PICK A SUPREME COURT JUSTICE AS EARLY AS TODAY FRONTRUNNER STEPHEN BREYER MET WITH THE PRESIDENT FRIDAY BUT RAN INTO TROUBLE AFTER DISCLOSURES THAT HE DIDN'T PAY SOCIAL SECURITY TAXES FOR A HOUSEKEEPER HILLARY RODHAM CLINTON PROMISED DOCTORS A HEALTH PLAN THAT WOULD STRIP AWAY BUREAUCRACY AND REFORM MALPRACTICE LAWS ADDRESSING THE ANNUAL MEETING OF THE AMERICAN MEDICAL ASSOCIATION SHE ATTACKED MICROMANAGEMENT OF DOCTORS BY INSURANCE COMPANIES PEOPLE WITH DIABETES CAN SHARPLY REDUCE THE EFFECTS OF THE DISEASE IF THEY PAINSTAKINGLY CONTROL BLOODSUGAR LEVELS A STUDY FOUND RESEARCHERS SAID THAT INTENSIVE BLOODSUGAR MANAGEMENT REDUCED EYE AND KIDNEY PROBLEMS AS WELL AS VARIOUS NERVERELATED DISORDERS THE SUPREME COURT RULED THAT STATE STATUTES THAT INCREASE SENTENCES FOR CRIMES MOTIVATED BY BIGOTRY DON'T VIOLATE THE FIRST AMENDMENT THE COURT'S UNANIMOUS DECISION FRIDAY REMOVED A CLOUD FROM SUCH STATE LAWS ALREADY ON THE BOOKS THE HIGH COURT STRUCK DOWN LAWS PASSED BY HIALEAH FLA THAT BANNED RITUAL ANIMAL SACRIFICES BY AN AFROCARIBBEAN SECT BUT RELIGIOUSFREEDOM ADVOCATES COMPLAINED THAT THE COURT'S REASONING WAS TOO NARROW NORTH KOREAN DIPLOMATS AGREED ON FRIDAY TO SUSPEND THEIR WITHDRAWAL FROM A NUCLEAR NONPROLIFERATION TREATY BUT PYONGYANG DIDN'T ALTER ITS REFUSAL TO ALLOW INSPECTION OF TWO SITES CAMBODIA'S OPPOSITION PARTY TOLD ITS FORCES TO PREPARE TO RETAKE A SEVENPROVINCE REGION THAT WAS OCCUPIED OVER THE WEEKEND BY REBELLIOUS TROOPS OF THE HUN SEN GOVERNMENT WHICH HAS REFUSED TO CONCEDE LAST MONTH'S ELECTION GERMANY'S SOCIAL DEMOCRATS TAPPED RUDOLF SCHARPING OF RHINELANDPALATINATE TO BE THE OPPOSITION PARTY'S NEXT CHAIRMAN HE WON ROUGHLY 40 OF THE VOTES CAST IN A FIRSTTIME RANKANDFILE VOTE A USTRAINED ECONOMIST WAS ELECTED LEADER OF TURKEY'S MOST POWERFUL PARTY THE VOTE NEARLY ASSURED TANSU CILLER'S APPOINTMENT TODAY AS THE NATION'S FIRST WOMAN PREMIER RAFSANJANI WON A SECOND FOURYEAR TERM AS IRAN'S PRESIDENT BUT HIS MARGIN OF VICTORY WAS SLIMMER THAN EXPECTED THE 58YEAROLD CLERIC GARNERED 63 OF THE VOTES CAST FRIDAY A FORMER LABOR MINISTER WON 24 DIED DONALD K DEKE SLAYTON 69 ONE OF THE SEVEN ORIGINAL MERCURY ASTRONAUTS WHO HELPED TO LAUNCH THE US MANNED SPACE FLIGHT PROGRAM IN LEAGUE CITY TEXAS OF A BRAIN TUMOR 9306140093 930614 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 2 7/8 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 314 30 TO 59 DAYS 316 60 TO 89 DAYS 320 90 TO 119 DAYS 325 120 TO 149 DAYS 328 150 TO 179 DAYS 330 180 TO 229 DAYS 337 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 319 30 DAYS 323 60 DAYS 327 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 270 TWO MONTHS 276 THREE MONTHS 294 SIX MONTHS 318 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 337 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 INRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 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 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 SIX MONTHS 3 15/16 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 7 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 314 13 WEEKS 330 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 716 60 DAYS 723 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 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306140092 930614 CREDIT RATINGS CONNECTICUT'S RATING IS AFFIRMED BY S&P NEW YORK STANDARD & POOR'S CORP AFFIRMED ITS DOUBLEAMINUS RATING FOR CONNECTICUT'S 55 BILLION GENERALOBLIGATION DEBT S&P SAID THE RATING REFLECTS CONNECTICUT'S WELL ABOVE AVERAGE WEALTH LEVELS AN INCREASED BUT MANAGEABLE DEBT BURDEN AND WEAKENED BUT IMPROVING FINANCIAL PERFORMANCE THROUGHOUT THE RECESSION THE STATE'S UNEMPLOYMENT RATE ROSE TO 72 OF THE WORK FORCE IN 1992 COMPARED WITH 53 IN 1989 PROJECTED CLOSINGS OF MILITARY BASES COULD ALSO WEAKEN CONNECTICUT'S ECONOMIC RECOVERY S&P SAID CONNECTICUT PROJECTS A GENERALFUND OPERATING SURPLUS OF 84 MILLION FOR THE FISCAL YEAR ENDING JUNE 30 THE STATE HAD A 110 MILLION SURPLUS A YEAR EARLIER 9306140091 930614 MERRILL IS FACING FOREIGN INVESTORS' SUIT OVER RISK FACTOR IN GLOBAL MUTUAL FUND BY CRISTINE GONZALEZ STAFF REPORTER OF THE WALL STREET JOURNAL SEVERAL FOREIGN INVESTORS HAVE SUED MERRILL LYNCH & CO FOR MORE THAN 86 MILLION CLAIMING THAT THE NEW YORK SECURITIES FIRM VIOLATED SECURITIES LAWS BY MISREPRESENTING THE RISKINESS OF AN INTERNATIONAL MUTUAL FUND THE SUIT CHARGES THAT MERRILL LYNCH'S PROSPECTUS FOR ITS SHORTTERM WORLD INCOME PORTFOLIO DIDN'T ADEQUATELY DISCLOSE THE FUND'S RISKS THE RISKS WERE DISCLOSED TO US INVESTORS WHO PURCHASED SHARES IN A SIMILAR FUND CALLED THE SHORTTERM GLOBAL INCOME FUND THE SUIT SAYS THERE WERE SEPARATE PROSPECTUSES FOR EACH FUND BOTH FUNDS ARE MUTUAL FUNDS DESIGNED TO INVEST IN THE SHORTTERM DEBT SECURITIES OF VARIOUS COUNTRIES THE WORLD FUND WAS MARKETED AS A CONSERVATIVE FUND FOR INCOMEORIENTED INVESTORS THE LAWSUIT SAYS THE FUND WASN'T REGISTERED FOR SALE IN THE US BUT DESPITE THAT WAS WIDELY SOLD IN THE US ACCORDING TO THE SUIT MERRILL LYNCH'S SALESPEOPLE ALSO MADE MISLEADING ORAL STATEMENTS ABOUT THE FUND THE SUIT SAYS MERRILL'S REGISTERED REPRESENTATIVES FALSELY STATED THAT INVESTMENTS IN THE WORLD FUND WERE PRUDENT AND VERY LOWRISK OR VIRTUALLY WITHOUT THE RISK OF ANY LOSS OF PRINCIPAL THE SUIT SAYS A MERRILL LYNCH SPOKESMAN STRONGLY DENIED THE ALLEGATIONS THERE IS ABSOLUTELY NO MERIT TO THIS LAWSUIT HE SAID THESE PLAINTIFFS SIMPLY IGNORE THE FULL DISCLOSURE OF CURRENCY AND HEDGING RISKS IN THE PROSPECTUS FOR THE WORLD FUND THE SUIT FILED LAST WEEK IN FEDERAL COURT IN SAN DIEGO WAS BROUGHT BY 10 INDIVIDUALS AND INVESTMENT COMPANIES IN MEXICO LIBERIA ISRAEL AND THE ISLAND OF NEVIS IN THE BRITISH WEST INDIES THE PLAINTIFFS ARE SEEKING TO HAVE THE SUIT CERTIFIED AS A CLASS ACTION THE SUIT WAS FILED IN SAN DIEGO BECAUSE MOST OF THE MEMBERS OF THE PROPOSED CLASS ARE IN MEXICO SOME OF THE FOREIGN INVESTORS WOULDN'T HAVE PUT MONEY INTO THE WORLD FUND IF THEY HAD BEEN TOLD OF THE RISKS SAID MICHAEL L KIRBY A SAN DIEGO ATTORNEY FOR THE PLAINTIFFS THE WORLD FUND AND THE GLOBAL FUND ARE IDENTICAL BUT THE GLOBAL INVESTORS RECEIVED INFORMATION THAT WASN'T GIVEN TO THE FOREIGN INVESTORS THE ATTORNEY SAID LAWYERS WHO REPRESENT MUTUAL FUNDS SAID IT IS COMMON FOR THEM TO OFFER IDENTICAL INVESTMENTS TO BOTH FOREIGN AND US INVESTORS BUT IT IS UNUSUAL FOR DIFFERENT PROSPECTUSES TO BE DISTRIBUTED IT'S UNIQUE IN MY EXPERIENCE AND I'M SURE IT'S UNIQUE IN MERRILL'S EXPERIENCE SAID JAMES E BECKLEY A CHICAGO ATTORNEY WITH MANY MUTUAL FUND CLIENTS IT'S ALSO UNUSUAL FOR FOREIGN INVESTORS TO FILE A CLASSACTION LAWSUIT IN THE US WE'RE GOING TO SEE MORE PEOPLE BUYING AMERICAN INVESTMENTS AND SINCE THE AMERICAN LEGAL SYSTEM IS PROBABLY THE MOST PLAINTIFFFRIENDLY IN THE WORLD WE'RE GOING TO SEE MORE UNHAPPY INVESTORS BRINGING THEIR ACTIONS HERE MR BECKLEY SAID THE PROPOSED CLASS WOULD INCLUDE THOUSANDS OF FOREIGN INVESTORS WHO PURCHASED MORE THAN 89 MILLION SHARES OF WORLD FUND BETWEEN JUNE 9 1990 AND DECEMBER 31 1992 THE LAWSUIT SAYS SHARES OF THE FUND HAVE FALLEN IN VALUE OVER THAT PERIOD MR KIRBY SAID THE PLAINTIFFS ARE SEEKING UNSPECIFIED DAMAGES OF AT LEAST 86 MILLION PLUS PUNITIVE DAMAGES AND INTEREST 9306140090 930614 PENTAGON PICKS UP 776 MILLION IN SALE OF DIAMOND TROVE PROCEEDS FROM STRATEGIC' GEMS STOCKPILED IN THE COLD WAR WILL HELP IN BASE CLEANUPS BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE PENTAGON'S SALE OF NEARLY ONE MILLION CARATS OF DIAMONDS FETCHED 776 MILLION AND MILITARY BRASS SAID THE PROCEEDS WOULD BE PUT TO SUCH UNCEREMONIOUS USES AS ENVIRONMENTAL CLEANUPS AT US BASES IN EUROPE OFFICIALS WITH THE DEFENSE LOGISTICS AGENCY THE PENTAGON UNIT OVERSEEING THE SALE OF NEARGEM TO GEMQUALITY INDUSTRIAL DIAMONDS WERE BEAMING AT A NEWS CONFERENCE FRIDAY WHERE THE RESULTS OF THE CLOSEDBID AUCTION OF THE GOVERNMENT'S CROWN JEWELS WERE ANNOUNCED THE SALE OF THE GEMSTONES FROM THE PENTAGON'S STRATEGIC STOCKPILE COULD HAVE BOMBED THE MARKET FOR INDUSTRIAL DIAMONDS HAS BEEN CHOPPY NOT LEAST BECAUSE OF THE INTRODUCTION OF NEW SYNTHETIC DIAMONDS ON A WIDE SCALE BUT THE PROCEEDS FROM THE MILITARY'S LODE FELL PRECISELY IN THE MIDDLE OF THE 50 MILLION TO 100 MILLION RANGE THAT PENTAGON OFFICIALS HAD HINTED WAS THEIR TARGET WE WERE EXTREMELY PLEASED WITH THE DOLLAR VALUES OF THE BIDS SAID ROBERT O'BRIEN DEPUTY ADMINISTRATOR OF THE DEFENSE DEPARTMENT'S NATIONAL STOCKPILE CENTER THE SALE AUTHORIZED BY CONGRESS LAST YEAR IS PART OF AN ACCELERATED SELLOFF OF THE US MILITARY'S COLD WARVINTAGE INVENTORY OF 91 STRATEGIC COMMODITIES AN ECLECTIC ASSORTMENT INCLUDING ASBESTOS BAUXITE IODINE COBALT AND OTHER ITEMS ONCE DEEMED VITAL TO THE NATION'S WARFIGHTING CAPACITY SOME 203 MILLION HAS BEEN RAISED FROM THE STOCKPILE SALES THIS YEAR INCLUDING THE DIAMOND AUCTION MR O'BRIEN SAID MARTIN RAPAPORT A NEW YORKBASED DIAMOND BROKER FAMILIAR WITH THE STONES ON SALE SAID THE PENTAGON DID WELL CONSIDERING THAT IT'S NOT REALLY IN THE DIAMOND BUSINESS AND THAT IT HAD TO SELL IN A VERY TRANSPARENT MANNER HE ADDED THAT THE AUCTION CREATED SOME EXCITEMENT AMONG BUYERS ENCOURAGING SOME TO BID ABOVE MARKET PRICES FOR THE FANCY YELLOW AND BROWNISHCOLORED STONES MR RAPAPORT SAID THE PENTAGON IN ITS NEXT ONE MILLION CARAT DIAMOND SALE IN SEPTEMBER MIGHT DO BETTER WITH BID PRICES IF IT SORTS THE STONES MORE PRECISELY SEPARATING THE GOLD FROM THE DROSS I THINK THE PENTAGON WOULD HAVE MADE MORE MONEY IF IT HAD SORTED THE PARCELS PROPERLY HE SAID A FEW VERY FINEQUALITY FANCYCOLORED STONES WERE MIXED IN WITH THOUSANDS OF CARATS OF NEARGEM OR LOWERQUALITY STONES IN ALL 28 INDIVIDUAL FIRMS FROM THE US BELGIUM AND ISRAEL PAID AN AVERAGE 83 A CARAT FOR THE 932806 CARATS OF DIAMONDS SOLD THE HIGHEST PRICE PAID AND ACCEPTED FOR A GROUP OF TOPOFTHELINE STONES WAS 448 A CARAT NINETEEN OF 320 INDIVIDUAL LOTS OF DIAMONDS ON OFFER WERE NOT SOLD BECAUSE BIDS CAME UNDER THE GOVERNMENT'S FAIR MARKET APPRAISALS MR O'BRIEN SAID STRESSING THAT THE AUCTION WAS NOT A DISTRESS SALE BY THE GOVERNMENT THE BIDDING SOMETIMES CAME DOWN TO THE DIFFERENCE OF THREE OR FOUR PLACES PAST THE DECIMAL POINT HE SAID WE ONLY ACCEPTED FAIR MARKET VALUE SEVENTY DIFFERENT FIRMS SUBMITTED BIDS AFTER EXAMINING THE MYRIAD SELECTIONS OF STONES OVER A 15WEEK PERIOD AT A CITIBANK VAULT IN MIDTOWN MANHATTAN NOT A SINGLE DIAMOND WAS LOST IN THE PROCESS MR O'BRIEN SAID WITH A SMILE HE SAID A SYSTEM OF WEIGHING EACH SAMPLE VIAL BEFORE AND AFTER THE 5500ODD INSPECTIONS PROVED FAILSAFE ALBEIT TIMECONSUMING 9306140089 930614 BUSINESS & RACE BY LEON S WYNTER BLACKS ARE LESS INFORMED ABOUT HEALTH ISSUES THAN WHITES STUDIES SHOW AND DON'T READ FITNESS MAGAZINES AS OFTEN TWO NEW PUBLICATIONS AIM TO FILL THAT GAP HEART & SOUL IS A VENTURE OF RODALE PRESS PUBLISHER OF PREVENTION AND OTHER MAGAZINES IN EMMAUS PA AND REGINALD D WARE A BLACK ENTREPRENEUR FROM CINCINNATI WHO HAS BEEN DEVELOPING THE MAGAZINE FOR FOUR YEARS THIS WEEK RODALE WILL PLACE 245000 COPIES OF HEART & SOUL'S FIRST ISSUE ON NEWSSTANDS AND IN DOCTORS' OFFICES NATIONWIDE WITH FULLCOLOR GRAPHICS HEART & SOUL RESEMBLES OTHER MASSMARKET HEALTH MAGAZINES BUT IT COVERS SUBJECTS OF PARTICULAR INTEREST TO BLACKS LIKE TAKING THE FAT OUT OF SOUL FOOD AND PREVENTING BREAST CANCER WHICH HITS BLACK WOMEN EARLIER AND MORE OFTEN THAN WHITES HEALTHQUEST A QUARTERLY PUBLISHED BY LEVAS INC OF ATLANTA HAS A BROADER FOCUS COVERING THE POLITICAL ASPECTS OF BLACK ACCESS TO HEALTH CARE AND THE ROLE OF RACISM IN STRESSRELATED ILLNESS AMONG OTHER SUBJECTS PUBLISHER SARA M LOMAX SAYS SHE IS DETERMINED TO REDEFINE HEALTH INFORMATION SO IT'S SOMETHING PEOPLE CAN EMBRACE TO EMPOWER THEMSELVES HEALTHQUEST'S FIRST ISSUE WITH A CONTROLLED CIRCULATION OF 20000 WAS DISTRIBUTED IN MARCH THROUGH BLACK BOOKSTORES AND OTHER RETAILERS LEVAS HAS SOLD FOUR PAGES OF ADS FOR THE SECOND ISSUE DUE OUT NEXT MONTH VS NONE THE FIRST TIME AROUND BLACKS TEND TO BUY FEWER MAGAZINES THAN DO OTHER PEOPLE WARNS MARTIN S WALKER A NEW YORK MAGAZINE CONSULTANT BUT HE ADDS THAT THE BLACK HEALTH NICHE HOLDS PROMISE THOUGH HISPANICAMERICANS MAY BE READY FOR QUALITY MASSCIRCULATION SPANISHLANGUAGE MAGAZINES THE INDUSTRY IS STILL FIGURING OUT HOW TO DELIVER THEM MEDIA SPECIALISTS SAY HISPANICS DON'T READ MAGAZINES AS MUCH AS OTHER GROUPS BECAUSE GOOD TITLES TARGETED TO THEM ARE LACKING PART OF THE PROBLEM IS THAT THE SPANISHLANGUAGE BROADCAST INDUSTRY WHICH DELIVERS BIG AUDIENCES WITH TWO TELEVISION NETWORKS AND MORE THAN 200 RADIO STATIONS IN THE US ATTRACTS THE BULK OF ADVERTISING DOLLARS AIMED AT HISPANICS SPANISH PRINT MEDIA WITH NO SIZABLE NATIONAL PUBLICATIONS GET LESS THAN 5 OF HISPANICORIENTED AD REVENUE ESTIMATES MANUEL REYES OF FOCUS MEDIA A LOS ANGELES AD AGENCY THE NATION'S PRINT MEDIA AS A WHOLE ATTRACT ABOUT 40 OF AD BUDGETS HE SAYS MAS A SPANISHLANGUAGE MONTHLY PUT OUT BY UNIVISION HOLDINGS DISTRIBUTED 650000 FREE COPIES PER ISSUE OVER THREE YEARS IN AN EFFORT TO ATTRACT ADVERTISERS BUT MAS FOLDED LAST MONTH HAVING FAILED TO GENERATE ENOUGH AD REVENUE SONIA MARIA GREEN DIRECTOR OF HISPANIC MARKETING FOR AVON PRODUCTS SAYS SHE MISSES MAS THE REMAINING FEMALEORIENTED MAGAZINES IN SPANISH REACH ONLY ABOUT 200000 READERS AN ADVO SUBSIDIARY LAST MONTH BEGAN DISTRIBUTING 15 MILLION FREE COPIES OF A NEW MAGAZINE NUESTRA GENTE OUR PEOPLE IN ANOTHER ATTEMPT TO FILL THE GAP ADVO A BIG DIRECTMAIL COMPANY BASED IN WINDSOR CONN IS SATURATING CENSUS TRACTS THAT ARE AT LEAST 70 HISPANIC IN MOST MAJOR MARKETS SEARS ROEBUCK BOUGHT MOST OF THE AD PAGES IN THE FIRST ISSUE OF NUESTRA GENTE A SEARS SPOKESMAN SAYS THE PURCHASE WAS MORE LIKE AN EXTENSION OF OUR DIRECTMAIL EFFORT CONSUMERPRODUCTS' COMPANIES SWELLING INTEREST IN MINORITY SHOPPERS HAS DRAWN BIG RESEARCH FIRMS INTO THE ETHNICSURVEY BUSINESS WITH AFRICANAMERICAN MEDIA FIRMS AS INTERESTED PARTNERS A NEW SURVEY OF BLACK CONSUMER ATTITUDES BY YANKELOVICH PARTNERS AND BURRELL COMMUNICATIONS GROUP CHICAGO IS SELLING BRISKLY AT 20000 A COPY BUT THE REAL MEASURE OF SUCCESS WILL BE HOW THE DATA ARE USED SAYS KEN SMIKLE PUBLISHER OF TARGET MARKET NEWS A TRADE PUBLICATION HE SAYS THE RESEARCH IS AMMUNITION IN BLACK MARKETING FIRMS' BATTLE TO GAIN ADVERTISERS' ATTENTION FOR THE BLACK MARKET AND WE'VE NEEDED A FRESH CACHE OF BULLETS FOR A LONG TIME THE BURRELL/YANKELOVICH SURVEY ASKED 1000 BLACKS ABOUT THEMSELVES AND THE MARKETPLACE SIMMONS MARKET RESEARCH BUREAU NEW YORK AND ESSENCE COMMUNICATIONS NEW YORK PLAN TO QUERY 10000 AFRICANAMERICANS ON A CONTINUING BASIS A SIMMONS EXECUTIVE SAYS A PILOT STUDY OF 1000 PEOPLE PLANNED FOR NEXT MONTH IS BEING FUNDED BY SIX LARGE COMPANIES IN PACKAGED GOODS SERVICES AND OTHER BUSINESSES FOR ESSENCE PUBLISHER OF THE LEADING BLACK WOMEN'S MAGAZINE ETHNIC MARKET RESEARCH IS A NATURAL EXTENSION SAYS LEWIS C WILSON DIRECTOR OF CORPORATE MARKETING RESEARCH ESSENCE AIMS TO REACH BEYOND ITS READERSHIP TO PROVIDE US AS AFRICANAMERICANS WITH MORE INFORMATION ABOUT WHO AND WHAT WE ARE SAYS MR WILSON ASIANAMERICAN JOURNALISTS CHEERED CONNIE CHUNG'S ELEVATION TO COANCHOR OF THE CBS EVENING NEWS BUT THEY SAY ASIANAMERICAN MEN ARE ALMOST INVISIBLE IN THE ANCHOR CHAIR ASIANAMERICANS WHO MAKE UP 33 OF THE US POPULATION HELD 2 OF BROADCAST NEWSROOM JOBS IN 1992 ACCORDING TO THE RADIOTELEVISION NEWS DIRECTORS ASSOCIATION VERNON STONE THE GROUP'S RESEARCH DIRECTOR SAYS LITTLE HAS CHANGED SINCE 1987 WHEN ONETHIRD OF ASIAN FEMALES IN BROADCAST NEWSROOMS DID SOME NEWS ANCHORING BUT ONLY 3 OF MALES DID THERE IS NOT A SINGLE MALE ASIANAMERICAN NEWS ANCHOR THAT I KNOW OF SAYS SAN FRANCISCO BROADCAST REPORTER DAVID LOUIE A PAST PRESIDENT OF THE ASIAN AMERICAN JOURNALISTS ASSOCIATION WITH NONE IN THE PIPELINE THERE AREN'T GOING TO BE ANY EQUALING CONNIE CHUNG ANYTIME SOON STEREOTYPES OF ASIAN MALES AS SUBMISSIVE HAVE WORKED AGAINST THEIR BECOMING ANCHORS MR LOUIE SAYS THE LACK OF VISIBLE MALE ROLE MODELS HAS DISCOURAGED ASIAN MEN FROM ENTERING THE FIELD HE ADDS REINFORCING THE PROBLEM 9306140088 930614 INTERNATIONAL HONG KONG TRADE WITH US HONG KONG HONG KONG'S APRIL TRADE SURPLUS WITH THE US WIDENED 25 TO 1123 BILLION HONG KONG DOLLARS US145 BILLION FROM THE YEAREARLIER'S HK901 BILLION BOOSTED BY A 39 INCREASE IN REEXPORTS TO THE COUNTRY ACCORDING TO OFFICIAL FIGURES RELEASED FRIDAY 9306140087 930614 JP MORGAN'S EUROPEAN UNIT TESTS NEW IDEAS CHAIRMAN SAYS BANK ALSO CONSIDERS EXPANSION OF ITS ACTIVITIES IN ASIA BY PHILIP REVZIN STAFF REPORTER OF THE WALL STREET JOURNAL PARIS DENNIS WEATHERSTONE SEES EUROPE AS A PLACE TO EXPERIMENT AND TO MAKE A LOT OF MONEY IF HE IS EVER ALLOWED TO BRING THE TECHNIQUES HE HAS PERFECTED HERE TO THE US IN AN UNTRAMMELED WAY HE WILL MAKE EVEN MORE THE CHAIRMAN OF JP MORGAN & CO IN AN INTERVIEW AT THE NEW YORK BANK'S ORNATE PARIS OFFICE IN THE PLACE VENDOME SAID THE INVESTMENT BANK IS CONTINUING TO INNOVATE IN EUROPE IN SUCH AREAS AS PRIVATIZATION FINANCING CORPORATE UNDERWRITING AND ESPECIALLY RISK MANAGEMENT THROUGH THE USE OF DERVATIVES SUCH AS CURRENCY FUTURES SOME OF THESE AREAS ARE BARRED TO US BANKS OTHERS HAVE JUST OPENED UP IN THE US MORGAN SAYS MR WEATHERSTONE IS ALSO SERIOUSLY CONSIDERING INCREASING ITS ACTIVITIES IN CHINA AND ELSEWHERE IN ASIA AS ITS WESTERN CUSTOMERS MOVE IN THERE THIS GLOBAL OPPORTUNISM HAS SERVED MORGAN WELL OVER THE YEARS THE COMPANY WHICH THIS YEAR CELEBRATES 125 YEARS OF PRESENCE IN PARIS RECENTLY REPORTED FIRSTQUARTER EARNINGS BEFORE ACCOUNTING CHANGES OF 432 MILLION UP 64 FROM THE YEAREARLIER 264 MILLION MR WEATHERSTONE SAID THE SECOND QUARTER HAS BEEN QUITE GOOD SO FAR THOUGH HE DECLINED TO BE MORE SPECIFIC MR WEATHERSTONE ADDED THAT EUROPE WAS A GOOD CONTRIBUTOR TO MORGAN'S EARNINGS HE SAID THE GENERAL EUROPEAN RECESSION DIDN'T HIT MORGAN TOO HARD AND THAT EUROPEAN CAPITAL MARKETS ADVISORY SERVICES AND TRADING ALL DID WELL WHILE CORPORATE UNDERWRITING AND MERGERS AND ACQUISITIONS SLOWED DOWN HE NOTED THAT MORGAN CURBED ITS STRAIGHT LENDING AS A PERCENTAGE OF ITS TOTAL ACTIVITY WITH LOANS MAKING UP JUST 28 OF ITS ASSETS SO IN THIS DOWNTURN WE WEREN'T AS DAMAGED BY CREDIT PROBLEMS AS WE USED TO BE HE ADDED THAT MORGAN DIDN'T SET ASIDE ANY PROVISION FOR LOAN LOSSES IN THE FIRST QUARTER WHEREAS IT USUALLY HAS PROVIDED ABOUT 10 MILLION A QUARTER MR WEATHERSTONE SEES EUROPE AS STILL GENERALLY IN RECESSION ALTHOUGH NOT ALL THE COUNTRIES ARE AT THE SAME LEVEL THE UNITED KINGDOM SHOULD COME OUT A LITTLE EARLIER AS WILL FRANCE BUT GERMANY'S WILL BE THE DEEPEST AND IT WILL TAKE THE LONGEST TO COME OUT BECAUSE OF ALL THE EXPENSE OF UNIFICATION HE EXPECTS THE EUROPEAN RECOVERY TO LEAD TO LOWER INTEREST RATES WE ASSUME OVERALL THAT INTEREST RATES WILL DECLINE AS PEOPLE STIMULATE THEIR ECONOMIES I HOPE GERMANY LOWERS ITS RATE QUICKLY BUT I DON'T SEE EUROPE TURNING AROUND QUICKLY WHAT UPSET EUROPEAN GROWTH HE SAID WAS THE UNIFICATION OF GERMANY UNFORTUNATELY EUROPE TRIED TO PRETEND IT HADN'T HAPPENED NOW HE ADDED HE EXPECTS CONTINUED PROGRESS TOWARD EASING BARRIERS TO BUSINESS AND ON THE MOVEMENT OF MONEY AND PEOPLE IN EUROPE ALTHOUGH HE SAID THE MOVEMENT TOWARD A COMMON CURRENCY MAY BE PUT OFF PROGRESS TOWARD EUROPEAN UNITY WON'T BE UNIFORM AND THE COUNTRIES ARE MORE LIKELY TO GO AHEAD IN GROUPS RATHER THAN ALL AT ONCE FOR THE US HE EXPECTS ABOUT A 25 RATE OF GROWTH IN THE SECOND HALF OF THE YEAR BUT AS IN EUROPE THIS WON'T BE ENOUGH TO DENT HIGH UNEMPLOYMENT FIGURES MOST OF THE COMPANIES WE TALK TO ARE PLANNING TO HANDLE THIS GROWTH WITH THE SAME NUMBER OF PEOPLE HE SAID MR WEATHERSTONE REITERATED MORGAN'S LONGSTANDING AVERSION TO ESTABLISHING A BIG RETAIL NETWORK EITHER IN EUROPE OR THE US UNLIKE BOND UNDERWRITING TRADITIONAL RETAIL BANKING IS BEST SERVED BY LOCAL BANKS AND EVEN IF I WERE INTERESTED IN RETAIL BANKING I WOULDN'T PRACTICE OVERSEAS BUT THE BUSINESS OF MOVING MONEY AROUND CAN BE PRACTICED OVERSEAS RIGHT NOW HE SAID MORGAN IS EXPERIENCING A GLOBAL UPTICK IN SECURITIES MARKETS WITH COMPANIES RAISING MONEY AS INTEREST RATES FALL EVEN IF THEY DON'T USE THE MONEY RIGHT AWAY HE EXPECTS A FURTHER UPTICK IN THE MARKETS BECAUSE OF THE BIG NUMBER OF PRIVATIZATIONS BEING PLANNED BY GOVERNMENTS AROUND THE WORLD MORGAN WAS ACTIVE IN THE FIRST WAVE OF FRENCH PRIVATIZATIONS FROM 1986 TO 1988 AND THE NEW CONSERVATIVELED FRENCH GOVERNMENT IS PLANNING TO SELL AN ADDITIONAL 21 BIG STATEOWNED COMPANIES MR WEATHERSTONE SAYS MORGAN HAS SPOKEN TO A NUMBER OF FRENCH COMPANIES LIKELY TO BE PRIVATIZED EARLY AND TO THE FRENCH TREASURY THE BANK EMPHASIZING ITS US BASE AND EUROPEAN EXPERIENCE PROBABLY WOULD WANT TO HELP PLACE CHUNKS OF NEW FRENCH SHARE ISSUES IN THE US AND ELSEWHERE THE TOTAL FRENCH PROGRAM COULD RAISE AS MUCH AS 300 BILLION FRANCS 5454 BILLION BECAUSE OF OUR HISTORY AND ACTIVITIES IN PARIS WE HOPE THAT IF THEY DO WANT TO TAP THE US MARKETS WE'D BE IN A NATURAL POSITION TO WORK ON PRIVATIZATIONS HE SAID FRENCH OFFICIALS HAVEN'T YET INDICATED WHERE THE ISSUES WILL BE PLACED SOME GOVERNMENT OFFICIALS EXPECT BIG DEMAND IN FRANCE BUT SOME BANKERS FRET THAT THE PARIS MARKET WON'T BE ABLE TO ABSORB IT ALL PRESENCE IN EASTERN EUROPE MR WEATHERSTONE SAID MORGAN HAS BEEN PRESENT BUT NOT PARTICULARLY ACTIVE IN PRIVATIZATIONS IN EASTERN EUROPE AND THE FORMER SOVIET UNION MORGAN REPRESENTED THE GOVERNMENT OF KAZAKHSTAN IN ITS RECENT HUGE OIL DEAL WITH CHEVRON CORP BUT WE'RE NOT INTENDING TO BE ACTIVE LENDERS IN EASTERN EUROPE HE SAID THE RISK/REWARD RATIO ISN'T ATTRACTIVE WHAT IS ATTRACTIVE TO MORGAN IS HELPING ITS CUSTOMERS IDENTIFY AND SOFTEN THEIR BIGGEST RISKS MR WEATHERSTONE SAID HE SEES INCREASING GROWTH IN THE USE OF DERIVATIVES AGAINST FOREIGNEXCHANGE RISK INTERESTRATE CHANGES OR THE PRICES OF METALS OR OIL BECAUSE OF ITS GLOBAL REACH AND LACK OF A MAJOR RETAIL BANKING PRESENCE MORGAN IS AN ENTHUSIASTIC ADVOCATE OF BANKING REFORM IN THE US MR WEATHERSTONE SAID HE HOPES THE CLINTON ADMINISTRATION WILL GET AROUND TO REFORMING THE SECURITIES INDUSTRY REMOVING CONTROLS ON WHAT BANKS CAN DO FOR INSTANCE INCLUDING LETTING THEM FREELY SELL SECURITIES AND ALLOWING NATIONWIDE BRANCH BANKING 9306140085 930614 INSTORE'S PROBE FINDS IT OVERSTATED REVENUE IN '89 '90 BY GAUTAM NAIK STAFF REPORTER OF THE WALL STREET JOURNAL GREENWICH CONN INSTORE ADVERTISING INC ANNOUNCED RESULTS OF ITS INVESTIGATION INTO OVERSTATED REVENUES IN PAST QUARTERS BUT ITS TROUBLES AREN'T YET OVER INSTORE WHICH PROVIDES ADVERTISING VIA INSTORE ELECTRONIC SIGNS SAID AN INVESTIGATION REVEALED IT HAD OVERSTATED REVENUES AND EARNINGS FOR FOUR QUARTERS IN 1989 AND 1990 PRECEDING THE COMPANY'S INITIAL PUBLIC OFFERING REVENUE IN THE SECOND HALF OF 1989 AND FIRST HALF OF 1990 WAS RECOGNIZED BY THE COMPANY BEFORE IT WAS EARNED ACCORDING TO AN INVESTIGATION BY THE ACCOUNTING FIRM DELOITTE & TOUCHE WHICH HAD BEEN RETAINED BY INSTORE THE COMPANY WENT PUBLIC IN JULY 1990 FOR THE 1989 FOURTH QUARTER AND THE FIRST TWO QUARTERS OF 1990 REVENUES IN EACH CASE WERE OVERSTATED BY BETWEEN 1 MILLION AND 2 MILLION HOWEVER OVERALL FINANCIAL RESULTS FOR 19891991 WERE NOT MISSTATED AND THE AGGREGATE REVENUE OF ABOUT 47 MILLION OVER THE THREE YEARS WAS CONSISTENT WITH CLIENT ADVERTISING CONTRACTS CLIENT BILLINGS AND COLLECTIONS INSTORE SAID ACCORDING TO STEPHEN KAHLER PRESIDENT AND CHIEF EXECUTIVE THE COMPANY HAD DISCUSSED THE MATTER WITH THE SECURITIES AND EXCHANGE COMMISSION AND ALTHOUGH THERE HASN'T BEEN AN SEC INVESTIGATION TO DATE IT DOESN'T MEAN THERE WON'T BE THE COMPANY PREVIOUSLY HAD BEEN SUED BY SHAREHOLDERS WHO CHARGED THAT IT HAD INFLATED ITS MARKET PRICE BEFORE THE PUBLIC OFFERING INSTORE HAD EARLIER SAID SETTLEMENT TALKS AMONG ITS LAWYERS AND THE SHAREHOLDERS HAD BEEN SUSPENDED WITHOUT REACHING A SETTLEMENT UNDER TERMS OF THAT SETTLEMENT INSTORE AND OTHER DEFENDANTS AGREED TO PAY 71 MILLION TO SHAREHOLDERS AND THEIR LAWYERS BUT FRIDAY'S DISCLOSURE OF THE FINANCIAL IRREGULARITIES WILL GIVE THE PLAINTIFFS A LOT OF AMMUNITION MR KAHLER SAID INSTORE SAID IT HAD NO REASON TO BELIEVE THAT THE FINANCIAL IRREGULARITIES WERE CAUSED BY ANY CURRENT EMPLOYEE WE DON'T KNOW THE FULL STORY WE REALLY DON'T KNOW WHAT HAS HAPPENED MR KAHLER SAID DURING 198990 INSTORE WAS HEADED BY ROBERT POLANSKI CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE WHO WAS REMOVED IN MAY 1991 BECAUSE OF POOR PERFORMANCE ACCORDING TO INSTORE JOHN CAPPS CHIEF FINANCIAL OFFICER DURING 198990 RESIGNED LAST APRIL THE COMPANY DIDN'T DISCLOSE A REASON FOR HIS DEPARTURE THE COMPANY ALSO REPORTED 1992 FOURTHQUARTER LOSSES OF 73 MILLON OR 93 CENTS A SHARE COMPARED WITH LOSSES OF 97 MILLION OR 123 A SHARE A YEAR EARLIER THE 1992 QUARTER INCLUDED THE EFFECT OF A PROVISION OF 34 MILLION FOR RELOCATION COSTS WHILE THE 1991 QUARTER'S RESULTS INCLUDED THE EFFECT OF A 55 MILLION RESERVE FOR LEGAL SETTLEMENTS REVENUE FELL SLIGHTLY TO 49 MILLION FROM 5 MILLION FOR THE QUARTER 9306140084 930614 DENTSPLY GENDEX MERGER YORK PENN DENTSPLY INTERNATIONAL INC AND GENDEX CORP COMPLETED THEIR MERGER WITH THE NEW COMPANY TAKING DENTSPLY'S NAME FOUNDED IN 1899 DENTSPLY BASED HERE MAKES AND SELLS DENTAL SUPPLIES AND EQUIPMENT GENDEX BASED IN DES PLAINES ILL MARKETS PRIMARILY XRAY SYSTEMS AND RELATED GEAR DENTSPLY SAID THE COMBINED COMPANY WILL BE TRADED OVER THE COUNTER UNDER GENDEX'S FORMER SYMBOL XRAY 9306140083 930614 PEPPERAND SALT THAT'S NOT VERY NEAT WASHING OF THE HANDS AT THE LUGGAGE CAROUSEL NOW THEY CAN'T BURN IT THEY MIGHT JUST RETURN IT 9306140082 930614 AIDS CONFERENCE SPAWNS CLOSER LOOK AT LONGTERM SURVIVORS AS KEY TO CURE BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN THE NINTH INTERNATIONAL CONFERENCE ON AIDS BROKE UP IN A FRACTIOUS BUT FERTILE SESSION AS SCIENTISTS LURCH TOWARD A CONCEPT OF AIDS THAT UNITES TWO CLASHING PATIENT PROFILES PEOPLE WITH DEVASTATING IMMUNE COLLAPSE AND LONGTERM SURVIVORS AS USUAL THE PARLEY ENDED IN A RITUAL THEATER OF RAGE AS ACTIVISTS BELLOWED AND BLEW WHISTLES AT CLOSING SPEAKERS A MAN IN A RED FEATHER BOA BRIEFLY OCCUPIED THE STAGE AND HUNDREDS CHANTED NO MORE TALK WE WANT A CURE UNNERVED THE HOST OF THE BERLIN MEETING KARLOTTO HABERMEHL LASHED BACK AT DEMONSTRATORS WARNING THEM IN A NEWS CONFERENCE AGAINST MAKING IT TOO DIFFICULT FOR CONFERENCE SPONSORS TO HOLD THE EVENT LATER ON A MORE CONCILIATORY NOTE HE SAID THE DISTURBANCE WAS A SIGN OF HOW DESPERATE PEOPLE ARE ALL OVER THE WORLD AMONG THE IDEAS DEBATED HERE WERE AN EMERGING VIEW OF HOW HIV THE VIRUS THAT CAUSES AIDS WREAKS ITS HAVOC IN THE IMMUNE SYSTEM AND THE RESURGENCE OF AN OLD AND RISKY MODEL OF LIVE VIRUS VACCINES THE PREVAILING CONCEPT NOW EMERGING FROM MANY LABS DEPICTS AIDS AS A PRIMARY INFECTION WITH HIV LEADING TO HYBRID SYMPTOMS PART INFECTIOUS DISEASE PART IMMUNE DEPRESSION PART AUTOIMMUNE DISEASE WITH THE BODY ATTACKING ITSELF THUS POLIO PIONEER JONAS SALK PREDICTED IT WILL BE MUCH HARDER THAN POLIO OR RABIES TO IMMUNIZE AGAINST AIDS IS THE ALZHEIMER'S OF THE IMMUNE SYSTEM HE SAID BECAUSE THE IMMUNE DEFENSE SYSTEM LOSE ITS MEMORY HIV DISEASE BEGINS WITH A SLOW CONTROLLED INFECTION KEPT IN CHECK BY A CASCADE OF HELPFUL IMMUNE RESPONSES SOMETIMES FOR YEARS THEN THE VIRUS SHIFTS INTO HIGH GEAR THROUGH MUTATION IMMUNE BURNOUT OR MASS CELL DEATH OVERFLOWING INTO THE BLOOD AND TRIGGERING A FASTER AND MORE FATAL PHASE OF AIDS LONGTERM SURVIVORS PEOPLE INFECTED EARLY IN THE EPIDEMIC BUT REMAINING ROBUST ARE SUBJECTS OF INTENSE SCRUTINY AS SCIENTISTS PROBE THE SECRETS OF THEIR IMMUNE CONTROL SYSTEM JAY A LEVY OF THE UNIVERSITY OF CALIFORNIA AT SAN FRANCISCO SAID SUCH PEOPLE ARE PROTECTED BY HIGH LEVELS OF SOCALLED SUPRESSOR OR CD8 CELLS WHICH SHOULD BE EXPLOITED FOR CLUES TO TREATMENT GENE SHEARER OF THE NATIONAL CANCER INSTITUTE ALSO IS STUDYING IMMUNE PROFILES OF PEOPLE WHO RESIST HIV DESPITE EXPOSURE WHILE MOST PEOPLE WITH HIV BECOME VERY ILL OR DIE WITHIN A DECADE THERE ARE SOME STUBBORN EXCEPTIONS LIKE JOEL THOMAS OF SAN FRANCISCO A ROBUST SIXFOOTER MR THOMAS SAYS HE KNOWS HE CONTRACTED THE HIV 14 YEARS AGO IN 1979 AN ACCIDENTAL DISCOVERY OBTAINED THROUGH A HEPATITIS B BLOOD SCREENING DURING THE LATE 70'S TODAY AGAINST THE ODDS HE SAYS HE'S DOING WELL ON A REGIMEN OF ANTIVIRALS AND IMMUNEBOOSTERS THE ANSWER ISN'T HOSING EVERYBODY DOWN WITH AZT MR THOMAS ASSERTED SWEDISH RESEARCHER LARS KALLINGS NOTED AZT IS STILL THE MAINSTAY OF TREATMENT BUT THIS MEETING SAW CONFIDENCE ERODED BY THE CONCORDE STUDY WHICH SAID INFECTED PEOPLE DON'T GAIN ANY SURVIVAL BENEFITS FROM EARLY AZT TREATMENT UNTIL THEIR IMMUNE SYSTEMS COLLAPSE INTO AIDS DR KALLINGS SAID NEW DRUG STUDIES SHOULD BE LINKED WITH EMERGING KNOWLEDGE ABOUT DIFFERENT VIRUS TYPES GENETIC MUTANTS AND STAGES OF THE DISEASE 9306140081 930614 LAW LEGAL BEAT JUDGE KEARSE IS COLLEAGUES' PICK AS NEXT SUPREME COURT JUSTICE BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL ASK TOP LAWYERS AND JUDGES WHOM THEY WOULD CHOSE FROM THE SHORT LIST OF POTENTIAL US SUPREME COURT NOMINEES AND THE ANSWER FREQUENTLY IS NONE OF THE ABOVE THE LAWYERS' FAVORITE AMALYA KEARSE THE NEW YORK JUDGE WHO IN 1979 BECAME THE FIRST BLACK WOMAN NAMED TO A FEDERAL APPEALS COURT DOESN'T APPEAR TO HAVE BEEN ON PRESIDENT CLINTON'S FINAL LIST OF POTENTIAL SUPREME COURT JUSTICES THIS TIME AROUND BUT THE FORMER CORPORATE LAWYER HAS BEEN DISCUSSED AS A POSSIBLE CHOICE FOR THE HIGH COURT IN THE PAST THREE PRESIDENTIAL ADMINISTRATIONS AND SHE WAS THE TOP CHOICE OF 50 PROMINENT LAWYERS POLLED RECENTLY BY THE LOS ANGELES DAILY JOURNAL A LEGAL NEWSPAPER JUDGE KEARSE HAS WON THE SUPPORT OF LIBERALS AND CONSERVATIVES BECAUSE SHE DOESN'T FIT CONVENTIONAL DEFINITIONS SHE IS SEEN BY REPUBLICANS AS A CAUTIOUS JUDGE WHO IS WELLVERSED ON SECURITIES ISSUES AND DEMOCRATS NOTE THAT SHE ISN'T AFRAID TO TAKE THEIR SIDE ON SOCIAL ISSUES AMONG HER MOST VOCAL FANS ARE JUDGES WHO APPRECIATE HER OPINIONS RIGOROUSLY INTERPRETING LEGAL PRECEDENT A FELLOW APPEALS COURT JUDGE JON NEWMAN EVEN WROTE AN OPINION PIECE FOR THE NEW YORK TIMES IN 1991 TOUTING HER AS A BETTER CHOICE FOR THE SUPREME COURT THAN CLARENCE THOMAS JUDGE KEARSE WAS AMONG THE HANDFUL OF FEDERAL JUDGES WHO IN ADDITION TO NEW YORK GOV MARIO CUOMO WERE QUICKLY IDENTIFIED BY THE WHITE HOUSE AS POTENTIAL NOMINEES FOR THE HIGH COURT ONCE MR CUOMO DROPPED OUT THE WHITE HOUSE CONTINUED TO CONSIDER JUDGE KEARSE BUT HER CHANCES FADED AS THE LIST WAS SHORTENED IN MAY SOME PEOPLE FAMILIAR WITH THE PROCESS SAID THERE WERE CONCERNS THAT JUDGE KEARSE WAS TOO CONSERVATIVE ALTHOUGH IT APPEARS THAT PRESIDENT CLINTON NEVER FOCUSED A LOT OF ATTENTION ON HER BY ALL ACCOUNTS JUDGE KEARSE IS BRILLIANT IF SOMEWHAT ENIGMATIC THE FIERCELY PRIVATE JURIST RARELY WRITES LEGAL ARTICLES OR GIVES SPEECHES BUT SHE IS WELL KNOWN IN THE BRIDGE WORLD SHE HAS TRANSLATED FRENCH BOOKS ON THE GAME AND WILL BE COMPETING THIS MONTH TO REPRESENT THE US IN THE WORLD BRIDGE CHAMPIONSHIPS JUDGE KEARSE 56 YEARS OLD WAS BORN IN VAUXHALL NJ WHERE HER FATHER WAS POSTMASTER AND HER MOTHER A DOCTOR IN A 1981 INTERVIEW WITH THE WELLESLEY COLLEGE ALUMNAE MAGAZINE SHE SAID SHE WENT TO LAW SCHOOL AT THE UNIVERSITY OF MICHIGAN EVEN THOUGH COUNSELORS AT WELLESLEY HAD DISCOURAGED IT THERE WERE ONLY EIGHT OTHER WOMEN IN HER LAW SCHOOL CLASS AND SHE SAID IT WAS DIFFICULT FOR THEM TO FIND WORK AT WALL STREET LAW FIRMS JUDGE KEARSE HOWEVER ULTIMATELY JOINED THE NEW YORK FIRM HUGHES HUBBARD & REED WHERE SHE BECAME A PARTNER IN 1969 TEN YEARS LATER PRESIDENT CARTER APPOINTED HER TO THE SECOND US CIRCUIT COURT OF APPEALS IN NEW YORK ALTHOUGH JUDGE KEARSE WAS A REGISTERED REPUBLICAN EARLY IN HER CAREER SHE'S NOW AN INDEPEN DENT PEOPLE WHO KNOW HER SAY FRIENDS SAY SHE IS SUCH A STICKLER FOR AVOIDING THE APPEARANCE OF CONFLICT THAT SHE STOPPED PLAYING TENNIS WITH NEW YORK CITY MAYOR DAVID DINKINS BECAUSE SHE THOUGHT SHE MIGHT HAVE TO HEAR AN APPEAL INVOLVING THE CITY WHILE AT HUGHES HUBBARD JUDGE KEARSE BUILT HER REPUTATION ON ANTITRUST AND OTHER BUSINESS LITIGATION IN ONE OF HER BIGGEST VICTORIES SHE REPRESENTED BROADCAST MUSIC INC THE MUSIC LICENSING ORGANIZATION BEFORE THE US SUPREME COURT IN LATE 1970S IN THE DECISION THE COURT BACKED AWAY FROM THE USE OF STRICT STATISTICAL STANDARDS SUCH AS SIMILARITY OF PRICES IN DETERMINING WHETHER A BUSINESS HAS A MONOPOLY JUDGE KEARSE HAS CONTINUED TO IMPRESS BUSINESS ATTORNEYS WITH HER CORPORATE LAW RULINGS IN 1984 SHE WROTE AN OPINION HAILED BY THE CORPORATE DEFENSE BAR BECAUSE IT LIMITED THE ABILITY OF PRIVATE PLAINTIFFS TO WIN TRIPLE DAMAGES IN SUITS BROUGHT UNDER THE RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS ACT IN 1990 SHE APPROVED A STRICTER STATUTE OF LIMITATIONS FOR BRINGING SECURITIESFRAUD SUITS THE STANDARD WAS ADOPTED BY THE SUPREME COURT IN ANOTHER CASE JUDGE KEARSE ALSO HAS ATTRACTED ATTENTION FOR HER BOLD OPINIONS ON SOCIAL ISSUES SHE DISSENTED FROM A RULING UPHOLDING PRESIDENT BUSH'S ORDER PROHIBITING DOCTORS AT GOVERNMENTFUNDED CLINICS FROM INFORMING PATIENTS ABOUT ABORTION THE SUPREME COURT UPHELD THE GAG ORDER WHICH PRESIDENT CLINTON HAS REMOVED AND IN A 1984 OPINION JUDGE KEARSE QUESTIONED THE SUPREME COURT'S POSITION AT THE TIME SAYING THAT PROSECUTORS SHOULDN'T BE ALLOWED TO KEEP BLACKS AND OTHER MINORITIES OFF JURIES ALTHOUGH THE SUPREME COURT DIDN'T ADOPT HER REASONING IT LATER BARRED SUCH RACEBASED JUROR CHALLENGES ON OTHER GROUNDS CLERKS AND FORMER COLLEAGUES DESCRIBE JUDGE KEARSE AS DEMANDING AND PRECISE SHE HAS A GREAT DEAL OF RESPECT FOR PRECEDENT SAYS MIGUEL A ESTRADA A FORMER LAW CLERK HE SAYS THAT JUDGE KEARSE IS PUNCTILIOUS ABOUT READING CASES FAIRLY AND HAS A FETISH FOR PERFECTION AND CLEAR WRITING IN CHAMBERS CLERKS SAY OPINIONS ARE OFTEN REDRAFTED UNTIL JUDGE KEARSE WHO OFTEN WORKS VIA COMPUTER MODEM FROM HER APARTMENT IN MANHATTAN'S GREENWICH VILLAGE IS SATISFIED JUDGE KEARSE HAS A REPUTATION FOR BEING COLD AND BUSINESSLIKE IN CHAMBERS SHE ASKS FEW QUESTIONS AT ORAL ARGUMENTS BUT SOMETIMES EXHIBITS A SHARP TONGUE SENSING A LAWYER WAS RAISING NEW ISSUES ON APPEAL WHICH IS FROWNED UPON BY APPELLATE COURTS JUDGE KEARSE ASKED IF HE HAD MADE THE ARGUMENT IN THE LOWER COURT A FORMER CLERK RECALLS THE LAWYER SAID THAT THE ARGUMENT HADN'T BEEN MADE IN HACE VERBA MEANING NOT IN THESE EXACT WORDS JUDGE KEARSE THEN ASKED IN ANY VERBA THE LAWYER SHEEPISHLY RETREATED FROM HIS ARGUMENT WHO'S NEWS FOUR ATTORNEYS SPECIALIZING IN LATIN AMERICAN CORPORATE FINANCE AT THE NEW YORK OFFICE OF JONES DAY REAVIS & POGUE WILL LEAVE TO JOIN KAYE SCHOLER FIERMAN HAYS & HANDLER LATER THIS MONTH ROBERT C HELANDER THOMAS C RAGAN AND KENNETH GM MASON WILL BE PARTNERS AT THE NEW YORK LAW FIRM AND ME FREEMAN WILL BE COUNSEL THEY WILL FORM A LATIN AMERICA AND EMERGING MARKETS DEPARTMENT AT KAYE SCHOLER JUNDA WOO CONTRIBUTED TO THIS COLUMN 9306140080 930614 ABREAST OF THE MARKET INTUITION' OF LITTLE GUYS COULD PROPEL STOCKS HIGHER BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK MAYBE THE LITTLE GUY IS GETTING A BAD RAP WALL STREET WISDOM HOLDS THAT WHEN SMALL INVESTORS FLOCK TO STOCKS IT'S GENERALLY A GOOD TIME FOR THE SMART MONEY TO BAIL OUT AFTER ALL STOCKS USUALLY HAVE TO RALLY LONG AND HARD BEFORE JOE SIXPACK NOTICES WHICH MEANS THE PARTY IS ABOUT OVER BY THE TIME HE GETS TO IT THE SAVVY INVESTORS SEEING HIM COMING ARE ALL TOO HAPPY TO SELL MR SIXPACK THEIR SHARES ON THEIR WAY OUT THIS JAUNDICED VIEW IS TOSSED ABOUT FREELY THESE DAYS BECAUSE THE NATION'S JOE SIXPACKS ARE INDEED BUYING STOCKS LIKE CRAZY EITHER DIRECTLY OR THROUGH MUTUAL FUNDS AND MANY ANALYSTS CITE THE FACT AS ONE MORE REASON WHY THE MARKET IS VULNERABLE TO A SETBACK BUT WHAT IF WALL STREET WISDOM IS WRONG DRAWING ON DATA FROM THE FEDERAL RESERVE BOARD GAIL DUDACK AN ANALYST AT SG WARBURG CONCLUDES THAT SMALL INVESTORS ARE REMARKABLY INTUITIVE ABOUT FINANCIAL MARKETS ESPECIALLY ASTUTE IN BUYING BONDS AND NO SLOUCHES AT TIMING THE STOCK MARKET EITHER WE BELIEVE THE SMALL INVESTOR IS UNJUSTLY MALIGNED AS A REVERSE MARKET INDICATOR MS DUDACK DECLARES IF SHE IS RIGHT THERE MAY BE MUCH MORE FIREPOWER TO PROPEL STOCKS HIGHER EVEN AS MARKET INDEXES HAVE SCALED THE HEIGHTS SMALL INVESTORS HAVE BEEN GOBBLING UP STOCKS ACCORDING TO THE INVESTMENT COMPANY INSTITUTE 418 BILLION POURED INTO STOCK MUTUAL FUNDS DURING THE FIRST FOUR MONTHS OF THIS YEAR ALMOST DOUBLE THE AMOUNT IN THE SAME PERIOD LAST YEAR MEANWHILE THE NEW YORK STOCK EXCHANGE'S RETAIL ACTIVITY LEAPED 38 IN THE FIRST QUARTER FROM A YEAR EARLIER COMPARED WITH A 29 RISE FOR INSTITUTIONS AND MEMBER FIRMS DESPITE THIS BUYING FRENZY MS DUDACK SAYS INDIVIDUAL INVESTORS ARE STILL UNDERWEIGHTED IN STOCKS BY HISTORICAL STANDARDS SINCE THE END OF WORLD WAR II HOUSEHOLDS ON AVERAGE HAVE KEPT ABOUT 357 OF THEIR FINANCIAL ASSETS IN STOCKS HELD DIRECTLY AND THROUGH MUTUAL FUNDS AT THE END OF LAST YEAR ONLY 317 OF HOUSEHOLD ASSETS WERE IN STOCKS THAT FOURPERCENTAGEPOINT DIFFERENCE AMOUNTED TO 377 BILLION SOME OF IT UNDOUBTEDLY HAS FLOWED INTO STOCKS ALREADY THIS YEAR BUT NOT ALL OF IT DO THE JOE SIXPACKS REALLY HAVE SO MUCH MONEY YES AND MORE INDIVIDUALS HAVE ABOUT 325 TRILLION SITTING AROUND RIGHT NOW IN LOWYIELDING MONEY MARKET FUNDS CERTIFICATES OF DEPOSIT AND TREASURY BILLS MS DUDACK SAYS OVER THE PAST TWO DECADES THE INVESTMENT DECISIONS OF SMALL INVESTORS HAVE ACTUALLY PROVEN TO BE RATIONAL AND AHEAD OF THE INSTITUTIONAL CROWD MS DUDACK SAYS SHE CITES THE BEAR MARKET OF 1973 AS AN EXAMPLE MS DUDACK SAYS THE PUBLIC'S EXPOSURE TO STOCKS ACTUALLY PEAKED FIVE YEARS BEFORE AND BY THE END OF 1972 WHEN THE DOW JONES INDUSTRIAL AVERAGE HAD HIT A HIGH OF 103626 THE STOCK COMPONENT OF THE HOUSEHOLD PORTFOLIO HAD FALLEN TO 448 FROM MORE THAN 50 IN 1968 BETWEEN THOSE YEARS HOUSEHOLDS WERE BUSILY SQUIRRELING AWAY CASH BOOSTING IT TO 345 OF THEIR PORTFOLIO IN 1972 FROM 286 MEANWHILE PRIVATE PENSION FUNDS AND INSURANCE COMPANIES WERE STUFFING THEIR PORTFOLIOS WITH STOCKS HOLDINGS OF STOCKS BY PRIVATE PENSION FUNDS PEAKED AT 67 IN 1971 AND INSURANCE COMPANY STOCK HOLDINGS TOPPED OUT A YEAR LATER AT 16 IN OTHER WORDS THE PUBLIC BEGAN TO SELL FIRST MS DUDACK SAID IN A RECENT REPORT SIMILARLY DESPITE THE PUBLIC PERCEPTION SMALL INVESTORS WEREN'T EXACTLY DEVOURING STOCKS BEFORE THE 1987 STOCK MARKET CRASH MS DUDACK SAYS THOUGH HOUSEHOLD HOLDINGS OF STOCKS CREPT UP DURING THE 1980S TO 297 IN 1986 FROM 275 IN 1979 OWNERSHIP OF STOCKS BY SMALL INVESTORS BARELY INCREASED BETWEEN 1985 AND 1986 PEOPLE SAID IN 1987 THERE WAS GOING TO BE A RECESSION IMMEDIATELY BECAUSE THE INDIVIDUAL'S WEALTH WAS WIPED OUT SAYS MS DUDACK BUT THAT DIDN'T OCCUR BECAUSE THE INDIVIDUAL'S DIRECT EXPOSURE TO STOCKS WAS NEVER THAT GREAT SHE SAYS WALL STREET FAILS TO REALIZE THAT SMALL INVESTORS ARE ACTUALLY VERY ATTUNED TO THE ECONOMY MS DUDACK SAYS THEY'RE IN THE GROCERY STORES THEY'RE IN THE RETAIL STORES AND THEY HAVE AS GOOD A SENSE OF CHANGES IN THE ECONOMY AS ANYONE ELSE SHE ASSERTS SUCH SENSITIVITY PERHAPS HELPED MAKE BONDS ONE OF THE BEST INVESTMENTS FOR SMALL INVESTORS OVER THE PAST 20 YEARS FOR INSTANCE BETWEEN 1968 AND 1969 HOUSEHOLDS INCREASED THEIR HOLDINGS OF FIXEDINCOME SECURITIES TO 153 FROM 123 THAT TURNED OUT TO BE A SMART MOVE BECAUSE BOND PRICES SOARED IN 1970 HOUSEHOLDS ALSO LOADED UP ON BONDS IN THE 1980S BECOMING THE SECOND LARGEST BUYER OF FIXEDINCOME SECURITIES AFTER INSURANCE COMPANIES FROM 1980 TO 1990 AS INTEREST RATES PLUNGED AND BOND PRICES SOARED THE PORTION OF BONDS IN THE HOUSEHOLD'S INVESTMENT PORTFOLIO JUMPED TO 266 FROM 16 THE HOUSEHOLD HAS DONE VERY WELL IN TERMS OF TIMING AND SELLING BONDS OVER THE YEARS MS DUDACK CONCLUDES THEY BUY THEM WHEN THEY'RE CHEAP AND THEY SELL THEM WHEN THEY ARE EXPENSIVE NOT EVERYBODY THINKS SO HIGHLY OF THE LITTLE GUY'S INVESTMENT ACUMEN NORMAN FOSBACK EDITOR OF FIVE INVESTMENT NEWSLETTERS PUBLISHED IN FORT LAUDERDALE FLA SAYS HE USES MUTUAL FUNDS AS A PROXY FOR SMALL INVESTORS AND THOSE STATISTICS TEND TO SHOW THAT THE LITTLE GUY DOES MOST OF HIS BUYING WHEN STOCKS ARE HIGH HE NOTES THAT THE LAST GREAT BUYING SPREE OF MUTUAL FUNDS OCCURRED IN 1987 BEFORE THE GREATEST CRASH IN 20 YEARS HE DOESN'T DISPUTE THE FEDERAL RESERVE'S FLOW OF FUNDS DATA BUT HE DOESN'T THINK IT ACCURATELY PORTRAYS THE SMALL INVESTOR'S ACTIVITIES FOR INSTANCE HE SAYS THE DATA INCLUDE WEALTHY INDIVIDUALS WHO ARE SAVVY INVESTORS ARTHUR MICHELETTI INVESTMENT STRATEGIST AT BAILARD BIEHL & KAISER IN SAN MATEO CALIF SAYS HE ISN'T SURE EITHER THE PUBLIC OR THE INSTITUTIONS ARE PARTICULARLY SMART I THINK THE CORPORATE INSIDERS ARE THE SMART MONEY AND THE PEOPLE ISSUING IPOS ARE THE SMART MONEY THERE HAS BEEN MORE SELLING OF STOCKS BY CORPORATE OFFICERS AND OTHER INSIDERS MR MICHELETTI SAYS AND SALES OF INITIAL PUBLIC STOCK OFFERINGS ARE RUNNING AT RECORD LEVELS BOTH ARE SIGNS OF A MARKET NEARING ITS TOP HE ADDS WHICH IS WHY HE RECOMMENDS CLIENTS KEEP US STOCKS TO A LOW PORTION OF A DIVERSIFIED PORTFOLIO STOCKS POSTED SOLID GAINS AS INVESTORS LOST SOME OF THEIR FEAR OF HIGHER INFLATION AND INTEREST RATES THE DOW JONES INDUSTRIAL AVERAGE ADVANCED 1329 OR 038 TO 350501 THURSDAY IT HAD DROPPED BELOW 3500 FOR THE FIRST TIME IN NEARLY THREE WEEKS INVESTORS WERE HEARTENED BY THE LABOR DEPARTMENT'S MORNING REPORT THAT ITS PRODUCER PRICE INDEX WAS UNCHANGED LAST MONTH AFTER SURGING IN APRIL THE STANDARD & POOR'S 500 STOCK INDEX ENDED THE DAY UP 188 OR 042 TO 44726 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ROSE 071 OR 029 TO 24624 ON THE NEW YORK STOCK EXCHANGE ADVANCING ISSUES OUTNUMBERED DECLINERS 1068 TO 815 ON VOLUME OF 253470000 SHARES COMPARED WITH 230590000 THURSDAY BANK STOCKS WERE AMONG THE STRONGEST HIGHER INTEREST RATES WOULD HAVE RAISED BANKS' COSTS AND CRIMPED PROFIT MARGINS CITICORP JUMPED 3/8 TO 27 1/2 CHEMICAL BANKING CLIMBED 1 1/8 TO 38 1/2 BANKAMERICA ROSE 1 1/2 TO 43 7/8 WELLS FARGO SURGED 4 TO 103 SIGNET BANKING ADDED 1 7/8 TO 53 1/8 AND BANC ONE ROSE 1 1/8 TO 52 1/8 OILRELATED STOCKS PLUMMETED AS ANALYSTS WORRIED ABOUT INCREASED PRODUCTION AMONG MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES CHEVRON FELL 2 5/8 TO 87 5/8 EXXON DROPPED 1 3/4 TO 65 1/4 TEXACO SLIPPED 1 3/8 TO 63 1/8 UNOCAL EASED 1 3/8 TO 30 5/8 AND MOBIL SHED 2 1/4 TO 71 1/4 DAVE PETTIT CONTRIBUTED TO THIS ARTICLE 9306140079 930614 BUSINESS BRIEF EMC CORP STORAGE TECHNOLOGY'S SUIT IS SAID TO BE WITHOUT MERIT EMC CORP SAID A PATENTINFRINGEMENT LAWSUIT FILED BY ITS LOUISVILLE COLO COMPETITOR STORAGE TECHNOLOGY CORP IS WITHOUT MERIT THE SUIT FILED IN US DISTRICT COURT IN DENVER ACCUSES EMC OF VIOLATING THREE 1985 STORAGETEK PATENTS THAT GOVERN THE WAY INFORMATION FLOWS FROM A COMPUTER'S STORAGE DISK TO ITS CACHE MEMORY SYSTEM THE COMPANY SAID IN HOPKINTON MASS THAT ITS SYMMETRIX PRODUCT LINE DOESN'T INFRINGE ON ANY OF THE STORAGETEK PATENTS BOTH COMPANIES MAKE STORAGE AND INFORMATION SYSTEMS FOR ADVANCED COMPUTERS 9306140078 930614 BUSINESS BRIEF CLAYTON HOMES INC TENNESSEE PROBES FAILURE TO PAY SOME SALES TAXES CLAYTON HOMES INC SAID THE TENNESSEE DEPARTMENT OF REVENUE IS INVESTIGATING THE COMPANY'S FAILURE TO PAY SOME SALES TAXES FROM ITS MANUFACTUREDHOMES COMMUNITIES IN THE STATE THE KNOXVILLE COMPANY WHICH MAKES AND SELLS MANUFACTURED HOMES SAID ITS BOARD IS CONDUCTING AN INDEPENDENT INVESTIGATION WHILE IT AGREES THAT SOME SALES TAXES WEREN'T PAID THE COMPANY BELIEVES THE AMOUNT OF MONEY INVOLVED IS IMMATERIAL TO CLAYTON'S FINANCIAL CONDITION A SPOKESMAN SAID CLAYTON HOMES SAID THE INVESTIGATION CONCERNS ABOUT SIX COMPANYOWNED COMMUNITIES AND FIVE OWNED BY JAMES L CLAYTON CHAIRMAN AND CHIEF EXECUTIVE OF CLAYTON HOMES AND COVERS THE PERIOD FROM 1988 THROUGH 1991 THE COMPANY SAYS IT IS COOPERATING WITH THE INVESTIGATION AND THAT THE COMPANY OFFICIAL WHO HAD RESPONSIBILITY FOR FILING SALESTAX RETURNS DURING MOST OF THAT PERIOD RESIGNED CLAYTON HOMES WOULDN'T NAME THE OFFICIAL 9306140077 930614 ENTERPRISE SOME SMALLBUSINESS GROUPS OPPOSE BREYER NOMINATION ENTREPRENEURS CLAIM SUPREME COURT FRONTRUNNER IS BIASED AGAINST THEM BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON FAILURE TO PAY SOCIAL SECURITY TAXES FOR A HOUSEHOLD MAID ISN'T THE ONLY PROBLEM JUDGE STEPHEN BREYER FACES IN HIS QUEST FOR A NOMINATION TO THE SUPREME COURT SOME SMALLBUSINESS ORGANIZATIONS CLAIM JUDGE BREYER IS BIASED AGAINST SMALLER COMPANIES AND IN AN UNUSUAL MOVE ARE ASKING PRESIDENT CLINTON TO EXAMINE JUDGE BREYER'S VIEWS ON SMALLBUSINESS AND ANTITRUST ISSUES TRADITIONALLY SMALLBUSINESS GROUPS HAVEN'T GOTTEN INVOLVED IN JUDICIAL APPOINTMENTS PREFERRING INSTEAD TO CONCENTRATE THEIR EFFORTS ON LEGISLATION AND REGULATIONS DESPITE THE SOCIAL SECURITY TAX ISSUE DISCLOSED THIS PAST WEEKEND JUDGE BREYER BOSTON'S CHIEF FEDERAL APPEALS COURT JUDGE IS THE LEADING CONTENDER TO REPLACE THE RETIRING JUSTICE BYRON WHITE A FORMER COUNSEL TO THE SENATE JUDICIARY COMMITTEE JUDGE BREYER IS POPULAR WITH BOTH DEMOCRATIC AND REPUBLICAN SENATORS NOT WAITING TO SEE WHETHER PRESIDENT CLINTON WILL CHOOSE JUDGE BREYER ONE SMALLBUSINESS GROUP THE AUTOMOTIVE SERVICES ASSOCIATION ALREADY IS CALLING ITS MEMBERS AND URGING THEM TO PERSUADE THEIR SENATORS TO OPPOSE THE NOMINATION IN A LETTER DELIVERED LAST WEEK THE GROUP TOLD MR CLINTON THAT JUDGE BREYER'S BIAS AGAINST SMALLBUSINESS AND HIS SUPPORT FOR INDUSTRIAL CONSOLIDATION APPEAR TO BE DEEPLY HELD BELIEFS THE ASA REPRESENTS ABOUT 12000 BUSINESSES INCLUDING AUTO REPAIR SHOPS AND OTHER AUTO SERVICE SHOPS WHICH EMPLOY ABOUT 50000 WORKERS THE SMALL BUSINESS LEGISLATIVE COUNCIL WHICH REPRESENTS 100 TRADE GROUPS ALSO IS ASKING THE WHITE HOUSE TO EXAMINE JUDGE BREYER'S RECORD THE GROUP'S OFFICIALS HOWEVER WON'T DISCUSS THEIR CONCERNS AN OFFICIAL OF THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS THE LARGEST SMALLBUSINESS ORGANIZATION SAID THAT HE DOESN'T KNOW THE JUDGE'S VIEWS ON SMALL BUSINESS AND THAT THE GROUP DOESN'T PLAN TO SUPPORT OR OPPOSE HIS NOMINATION NFIB MOSTLY REPRESENTS VERY SMALL COMPANIES HOWEVER AND RARELY COMMENTS ON JUDICIAL APPOINTMENTS JUDGE BREYER IS WELLKNOWN FOR HIS CONSERVATIVE VIEWS ON ANTITRUST LAW BUT SO FAR THERE IS LITTLE OPPOSITION IN THIS AREA SOME LIBERAL POLITICIANS HAVE VOICED CONCERN ABOUT THE JUDGE'S ECONOMIC VIEWS BUT SEN EDWARD KENNEDY D MASS IS A KEY SUPPORTER AS AN AIDE TO SEN KENNEDY IN THE 1970S JUDGE BREYER SPEARHEADED THE DEREGULATION OF THE AIRLINE INDUSTRY THE ASA TOLD THE PRESIDENT THAT JUDGE BREYER'S ECONOMIC VIEWS MIRROR THOSE OF CONSERVATIVE JUSTICE ANTONIN SCALIA AND ADVISED HIM TO READ JUDGE BREYER'S ANTITRUST OPINIONS HIS WRITINGS CLEARLY PORTRAY A MAN WHO WOULD NOT BRING A HIGH REGARD FOR THE CONTRIBUTIONS OF SMALL BUSINESS AND EFFECTIVE PRICE COMPETITION WROTE DON RANDALL THE GROUP'S LOBBYIST HE SEEMS TO INDICATE THAT SMALL BUSINESSES ARE INEFFICIENT AND THEIR ELIMINATION WOULD BE IN THE OVERALL PUBLIC INTEREST WE DON'T WANT TO STOP THIS JUST TO STOP IT MR RANDALL SAID THIS IS A REALLY IMPORTANT ISSUE CHARLES MUELLER THE EDITOR OF ANTITRUST LAW & ECONOMICS REVIEW HIS OWN SMALL LAW JOURNAL PUBLISHED IN VERO BEACH FLA ALSO WROTE PRESIDENT CLINTON TO VIGOROUSLY OPPOSE THE NOMINATION MR MUELLER WHO HANDLED ANTITRUST CASES AT THE FEDERAL TRADE COMMISSION FROM 19601975 CLAIMS THAT THE JUDGE'S OPINIONS SHOW THAT HE IS DISDAINFUL OF SMALL BUSINESS AND THAT HE CONSISTENTLY RULES IN FAVOR OF ECONOMIC BULLIES RATHER THAN THEIR VICTIMS MR MUELLER SAID HIS REVIEW OF THE JUDGE'S ANTITRUST OPINIONS OVER A FIVEYEAR PERIOD 19871991 SHOWS THAT THE CORPORATE DEFENDANT ALWAYS WON NO MATTER HOW EGREGIOUS THE CHALLENGED CONDUCT HE TOLD THE PRESIDENT THAT JUDGE BREYER'S OPINIONS ARE DEVOID OF ANY SENSE OF JUSTICE TOWARD THE NATION'S 20 MILLION ENTREPRENEURS WHOSE OPERATIONS ARE SMALL ONE OF THE REASONS NFIB SAID IT ISN'T TAKING A STAND ON JUDGE BREYER IS THAT ITS MEMBERS' INTEREST IN ANTITRUST ENFORCEMENT HAS DECLINED SHARPLY OVER THE PAST DECADE JOHN MOTLEY NFIB'S CHIEF LOBBYIST SAID THAT WHILE A THIRD OF THE FEDERATION'S MEMBERS ARE RETAILERS WHO GENERALLY FOLLOW ANTITRUST LAW THE FASTESTGROWING PART OF THE ECONOMY IS THE SERVICES SECTOR WHERE ANTITRUST ISSUES USUALLY AREN'T BIG CONCERNS BUT THE ASA'S MR RANDALL AND OTHER SMALLBUSINESS EXPERTS WARN THAT IGNORING THE ANTITRUST ISSUES WILL HURT THE VERY TYPE OF SMALL BUSINESSES AGGRESSIVE ENTREPRENEURS WITH GROWING CONCERNS THAT THE ADMINISTRATION MOST WANTS TO PROMOTE 9306140076 930601 REVIEW & OUTLOOK EDITORIAL THE CLASSWARFARE ECONOMY A TAX ON DREAMS PERHAPS THE APPOINTMENT OF DAVID GERGEN WILL MEAN A NEW DIRECTION FOR THE CLINTON ADMINISTRATION BUT A NEW TAX BILL WOULD MEAN A LOT MORE IN PARTICULAR THE CLINTONGERGEN TEAM SHOULD DROP THE CLASSWARFARE TAXES INTENDED WHETHER OR NOT THEY RAISE ANY REVENUE TO PUNISH THE RICH THE CLINTON PEOPLE AND THE CONGRESSIONAL DEMOCRATS HAVE BEEN SCRATCHING THEIR COLLECTIVE NOGGINS OVER A JOBLESS RECOVERY WHAT'S THE MYSTERY TAKE A LOOK AT WHAT THEIR TAX PROGRAM PORTENDS FOR SMALL BUSINESS WE'RE A COUNTRY OF MOMS AND POPS SOME 80 OF ALL BUSINESSES REPORT THEIR EARNINGS ON SOMEBODY'S INDIVIDUAL INCOME TAX RETURN AND THESE ESPECIALLY INCLUDE THE STARTUP BUSINESSES THAT ULTIMATELY CREATE JOBS HOW MANY MICROSOFTS OR BANANA REPUBLICS WON'T EMERGE SOMEDAY IF THE CLINTON TAXES SUCK THEM UNDER A GUY WHO GOES OUT AND BUYS A COUPLE OF LAWNMOWERS AND STARTS A LANDSCAPING BUSINESS PROBABLY ISN'T GOING TO INCORPORATE INSTEAD HE'LL RUN HIS BUSINESS OFF HIS INDIVIDUAL TAX RETURN IT'S SIMPLER AND HE PROBABLY ISN'T THE KIND OF PERSON WHO ASSIDUOUSLY STUDIES THE TAX CODE OR SPENDS A LOT OF TIME WITH LAWYERS IF HE DOES WELL AND BUYS SOME TRUCKS AND STARTS HIRING PEOPLE THAT'S WHEN HE BLUNDERS INTO MR CLINTON'S SIGHTS THE TAX BILL IS SUPPOSED TO PUNISH SOME MYTHICAL ROBBER BARONS FROM THE 1980S BUT OF COURSE IT STOMPS ON PEOPLE WHO ARE JUST NOW BUILDING FOR THE FUTURE MR CLINTON PROTESTS THAT THE BLOW WILL ONLY LAND ON FAMILIES OVER 100000 AS IF THIS WERE A RAREFIED AND EXPENDABLE CLASS BUT SOME 52 OF THOSE REPORTING INCOME OVER 100000 ARE SMALL BUSINESS OWNERS AND 66 OF THOSE MAKING OVER 200000 THESE ARE PEOPLE WHO MAKE THEIR MONEY THE OLDFASHIONED WAY WITH HARD WORK AND LONG HOURS AND THEY HAVE SUCCEEDED BY RUNNING RISKS NEARLY HALF OF THEIR FELLOW ENTREPRENEURS ACTUALLY LOST MONEY IN THEIR BUSINESSES IN 1990 THE MOST RECENT DATA IN TARGETING THE RICH THE CLINTON RHETORIC CLAIMS THE NEW TOP RATES RISE TO BETWEEN 36 AND 396 FROM THE CURRENT 31 BUT IN FACT AFTER ADDING UP THE IMPACT OF THE TWO NEW BRACKETS AN UNLIMITED MEDICARE TAX AND PHASING OUT VARIOUS DEDUCTIONS THE TOP MARGINAL RATE WOULD ROCKET TO NEARLY 45 THIS IS MERELY ON THE OWNER'S RETURN BEFORE INCREASED EXPENSES FOR THINGS SUCH AS MANDATED HEALTH CARE THIS PUNITIVE BURDEN WOULD FALL ON A BUSINESS'S ENTIRE PROFITS NOT JUST ON WHAT THE OWNER TAKES OUT OF THE BUSINESS OVERWHELMINGLY THESE FIRMS FINANCE GROWTH OUT OF RETAINED EARNINGS AND THE TAX WOULD BEGIN KICKING IN AT 140000 FOR MARRIED COUPLES THAT'S JUST ABOUT THE POINT WHERE MANY A SMALL BUSINESS IS TAKING OFF IT WILL BE ESPECIALLY CRIPPLING IF THE CLINTONITES SUCCEED IN MAKING THE TAXES RETROACTIVE BECAUSE THE EXIGENCIES OF LIFE MEAN THAT SMALL BUSINESSES DON'T EXACTLY HAVE A LOT OF IDLE CASH SITTING AROUND THE MEDIA'S LIGHTS GO ON WHENEVER SOME FORTUNE 500 COMPANY LAYS OFF A THOUSAND PEOPLE BUT YOU'LL NEVER SEE BRYANT GUMBEL HYPERVENTILATING OVER THE TENS OF THOUSANDS OF SMALL BUSINESSES THAT DIE EVERY WEEK SMALL COMPANIES ARE THE DYNAMIC HEART OF THE ECONOMY THE JOB CREATORS AND THEY REPRESENT A LOT OF HARD WORK DEDICATION AND ULCERS ON SOMEBODY'S PART AND 90 OF THEM FAIL WITHIN FIVE YEARS ANYWAY AGAINST THOSE ODDS COMPANIES EMPLOYING FEWER THAN 20 PEOPLE SOMEHOW MANAGED TO CREATE 107 MILLION NEW JOBS DURING THE GREED DECADE MEANWHILE THE FORTUNE 500 LOST TWO MILLION JOBS YET TODAY SMALL COMPANIES ARE BENDING OVER BACKWARDS TO AVOID HIRING PEOPLE ACCORDING TO RECENT SURVEYS RUTH STAFFORD AN EXECUTIVE WITH A SMALL PHOENIX BOX MAKER TOLD THE JOURNAL THE OTHER DAY WITH ALL THESE REGULATORY AND TAX BURDENS YOU WONDER WHY YOU SHOULD GET UP IN THE MORNING AND BEAT YOUR BRAINS OUT PRESUMABLY VISIONS OF A SECOND TERM STILL DANCE IN THE PRESIDENT'S EYES WE'RE DELIGHTED THAT MR CLINTON AT LEAST IS STARTING TO RECOGNIZE THAT HIS PRESIDENCY NEEDS SALVAGING BUT THAT WILL REQUIRE MORE THAN A NEW COMMUNICATIONS DIRECTOR IT WILL MEAN UNBURDENING HIMSELF OF HIS AMBITION TO BE SEEN AS THE NEXT FDR A POSTELECTION DREAM WILDLY OUT OF TOUCH WITH THE HISTORICAL MOMENT AMERICA ISN'T SLOGGING THROUGH A GREAT DEPRESSION AND DOESN'T NEED A GREAT WHITE FATHER IN WASHINGTON TO MAKE IT FEEL BETTER IT NEEDS A PRESIDENT CLINTON LIKE CANDIDATE CLINTON WHICH IS TO SAY MORE LIKE RONALD REAGAN MR CLINTON NEEDS TO CAST HIS BLESSING OVER THE COUNTRY'S CREATIVE TALENTS AND ENERGIES AND MAKE THE ECONOMY ONCE AGAIN SAFE FOR JOB CREATION SEE RELATED LETTERS LETTERS TO THE EDITOR TAX NIGHTMARE ON DREAM STREET WSJ JUNE 14 1993 9306010098 YY93 MM06 9306140075 930614 INTENSE REGIME FOUND TO CHECK DIABETES EFFECTS BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL AN AMBITIOUS 10YEAR STUDY FOUND THAT PEOPLE WITH DIABETES CAN SHARPLY REDUCE THE RAVAGES OF THE DISEASE IF THEY UNDERTAKE PAINSTAKING CONTROL OF THEIR BLOODSUGAR LEVELS IN REPORTING RESULTS OF THE FEDERALLY RUN STUDY YESTERDAY RESEARCHERS SAID INTENSIVE BLOODSUGAR MANAGEMENT REDUCED DIABETIC EYE PROBLEMS BY 76 SEVERE KIDNEY PROBLEMS BY 35 TO 56 AND CRIPPLING NERVERELATED DISORDERS BY 60 WHEN COMPARED WITH MORE CONVENTIONAL TREATMENT DOCTORS AND DIABETICS HAVE EAGERLY AWAITED RESULTS OF THE STUDY CALLED THE DIABETES CONTROL AND COMPLICATIONS TRIAL OR DCCT RESEARCHERS SAID THE RESULTS CONFIRMED THE NOTION THAT CLOSE MONITORING OF BLOOD GLUCOSE LEVELS AND RIGID ADHERENCE TO A PROGRAM OF DIET EXERCISE AND INSULIN INJECTIONS CAN PREVENT OR DELAY COMPLICATIONS THAT MAKE DIABETES SO DANGEROUS THE STUDY WAS MUCH MORE SUCCESSFUL THAN WE COULD HAVE HOPED SAID HARRY SHAMOON WHO RAN ONE OF THE 29 TEST SITES IN THE STUDY AT ALBERT EINSTEIN COLLEGE OF MEDICINE IN NEW YORK DR SHAMOON SAID THE FINDINGS PROVIDE CONVINCING EVIDENCE THAT SHOULD SPUR DRAMATIC CHANGE ON THE WAY THE DISEASE IS TREATED ABOUT 14 MILLION AMERICANS HAVE SOME FORM OF DIABETES A DISEASE IN WHICH INGESTED GLUCOSE OR SUGAR NEEDED FOR GROWTH AND ENERGY IS POORLY HANDLED BY CELLS ALLOWING IT TO BUILD UP IN THE BLOODSTREAM AND PASS OUT OF THE BODY IN URINE OVER TIME REDUCED GLUCOSE PROCESSING CAN DAMAGE EYE CELLS LEADING TO BLINDNESS CAN DAMAGE KIDNEYS AND CAN CAUSE NERVE DAMAGE TO ARMS AND LEGS THAT CAN LEAD TO SEVERE PAIN AND EVEN AMPUTATIONS THE FEDERAL GOVERNMENT ESTIMATES THAT TREATING COMPLICATIONS COSTS ABOUT 40 BILLION A YEAR PEOPLE WITH DIABETES OFTEN HAVE A SHORTAGE OF INSULIN A HORMONE PRODUCED BY THE PANCREAS THAT HELPS CELLS CONSUME GLUCOSE MOST PEOPLE MONITOR THEIR BLOODSUGAR LEVELS WITH A FINGERPRICK BLOOD TEST AND THEN REDUCE EXCESS GLUCOSE THROUGH LOWSUGAR DIETS DRUGS OR TAKE ONE OR TWO INJECTIONS OF INSULIN A DAY BUT BECAUSE THERE IS NO CURE FOR THE DISEASE AND TRADITIONAL THERAPIES OFTEN FAIL TO PROTECT AGAINST THE ONSET OF COMPLICATIONS MANY DOCTORS HAVE ARGUED FOR YEARS THAT AN EXTRASTRICT REGIMEN OF GLUCOSE MONITORING AND CONTROL SHOULD BE PRESCRIBED BUT UNTIL NOW THERE WAS NO DEFINITIVE PROOF TO SUPPORT THE KIND OF INTENSIVE MANAGEMENT SUCH BLOOD SUGAR CONTROL WOULD REQUIRE IN THE STUDY INVOLVING 1441 PEOPLE IN THE US AND CANADA TEST SUBJECTS WERE RANDOMIZED INTO TWO THERAPY GROUPS IN ONE GROUP PEOPLE WERE REQUIRED TO TEST THEIR OWN BLOOD FOUR OR MORE TIMES A DAY TAKE FOUR OR MORE INSULIN INJECTIONS OR HAVE THEIR INSULIN PUMPED INTO THEIR BLOOD USING A PORTABLE DEVICE IN ORDER TO KEEP GLUCOSE LEVELS LOW THEY ALSO AGREED TO CHANGE THEIR DIET AND EXERCISE AS NEEDED THAT GROUP WAS COMPARED WITH A SIMILAR GROUP THAT FOLLOWED A MORE CONVENTIONAL THERAPY THE RESEARCHERS FOUND THAT AS COMPARED WITH CONVENTIONAL TREATMENT THE INTENSIVE THERAPY DELAYED THE ONSET OF SOME SYMPTOMS AND SLOWED THE PROGRESSION OF OTHERS THE STUDY WAS SPONSORED BY THE NATIONAL INSTITUTE OF DIABETES AND DIGESTIVE AND KIDNEY DISEASES 9306140074 930614 BUSINESS BRIEF GEOTEK INDUSTRIES INC ACQUISITION OF BRITISH FIRM FOR 24 MILLION IS PLANNED GEOTEK INDUSTRIES INC RAMSEY NJ SAID IT AGREED TO PAY 24 MILLION FOR A BRITISH PUBLICACCESS MOBILE RADIO NETWORK IN A MOVE INTENDED TO EXPAND ITS WIRELESS COMMUNICATIONS SERVICES THE TELECOMMUNICATIONS COMPANY WHOSE 1992 REVENUE OF 30 MILLION CAME ALMOST ENTIRELY FROM SALES IN ITS COMMUNICATIONSEQUIPMENT DIVISION PROVIDES WIRELESS SERVICES SUCH AS DATA DISPATCHING AND ELECTRONIC MAIL TO FEWER THAN 5000 US CUSTOMERS BUT WITH THE ACQUISITION OF NATIONAL BAND THREE LTD ITS FIRST BRITISH VENTURE GEOTEK WILL PROVIDE WIRELESS VOICE AND DATA SERVICES TO MORE THAN 33000 SUBSCRIBERS IN ENGLAND AND SCOTLAND YARON EITAN GEOTEK PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE ACQUISITION FITS INTO THE COMPANY'S PLANS TO INCREASE ITS BUSINESS IN WIRELESS COMMUNICATION SERVICES IN THE US AND ABROAD NATIONAL BAND THREE AS THE SOLE PUBLICACCESS MOBILE RADIO NETWORK IN BRITAIN HAD BREAKEVEN EARNINGS LAST YEAR ON REVENUE OF 17 MILLION 9306140073 930614 MARKETING & MEDIA ADVERTISING LICENSING EXECUTIVES LOOK AHEAD TO THE STONE AGE FOR HOT IDEAS BY LAURA BIRD FORGET ABOUT JURASSIC PARK FOR THE THOUSANDS OF EXECUTIVES DESCENDING ON NEW YORK FOR LICENSING '93 THE INDUSTRY'S ANNUAL CONVENTION AND EXPOSITION STEVEN SPIELBERG'S DINOSAURS ARE ALREADY FADED AND FOSSILIZED RETAILERS MARKETERS AND THEIR AGENTS ARE ALREADY ON THE PROWL FOR NEXT YEAR'S JURASSICSIZED HIT HUSTLING FOR THEIR ATTENTION ARE THOUSANDS MORE IMPLAUSIBLY CUTE QUIRKY CRITTERS WHO IF THEY AREN'T DESTINED FOR THE STAGE AND SCREEN ARE JUST DYING FOR STEADY WORK ON A LUNCH BOX OR COFFEE CUP BUT THIS YEAR THE HYPEMEISTERS WHO USUALLY LEAD THE CHARGE TO THE NEXT BIG THING SOUND UNCHARACTERISTICALLY RESTRAINED SEVERAL RECENT HIGHPROFILE PROPERTIES BILLED AS MERCHANDISING BLOCKBUSTERS INCLUDING THE JETSONS AND DICK TRACY LEFT HEAPS OF LOGOED GOODS LANGUISHING ON RETAIL SHELVES LAST YEAR'S HOT FRANCHISE THE INCREDIBLE CRASH DUMMIES DIDN'T LIVE UP TO THE HYPE RACKING UP ONLY ABOUT 65 MILLION AT RETAIL AFTER YEARS OF BOOM TIMES SALES OF ALL KINDS OF LICENSED MERCHANDISE FROM CARTOONED TSHIRTS TO DESIGNER LUGGAGE FELL 2 LAST YEAR TO 622 BILLION AFTER DECLINING 2 THE YEAR BEFORE THE ENTERTAINMENT AND CHARACTER SEGMENT WHICH ACCOUNTS FOR ALMOST ONEQUARTER OF THE BUSINESS FELL MORE SHARPLY ACCORDING TO EPM COMMUNICATIONS' LICENSING LETTER YOU HAVE TO REMEMBER THIS BUSINESS IS VERY DARWINIAN MOST THINGS WILL FAIL SAYS SETH SIEGEL COCHAIRMAN OF THE BEANSTALK GROUP A LICENSING AGENT SO RETAILERS ARE BEING MORE CAUTIOUS AND THE SELLERS ARE RATCHETING DOWN EXPECTATIONS TO BETTER THEIR ODDS SOME LICENSERS ARE MIMICKING PREVIOUS SUCCESS STORIES OR AMBUSHING POPULAR TRENDS OTHERS ARE TRYING TO REVIVE CLASSIC CHARACTERS FROM DECADES PAST HOPING TO JOG THE FOND MEMORIES OF YOUNG PARENTS AND EVEN GRANDPARENTS FOR A BUILTIN FRANCHISE BUT IS THERE ANY AUDIENCE AT ALL READY TO GO NUTS FOR THE UNTESTED LIKES OF BIKER MICE FROM MARS THE SYNDICATED CARTOON SERIES OWNED BY RONALD O PERELMAN'S NEW WORLD ENTERTAINMENT HAS ALREADY BEEN CROWNED AS THIS YEAR'S VERSION OF THE TEENAGE MUTANT NINJA TURTLES THE MOST POPULAR CHARACTERS IN THE ANNALS OF LICENSING WITH MORE THAN 4 BILLION IN RETAIL SALES IN ABOUT SIX YEARS THE MICE SEEM TO BORROW HEAVILY FROM THE HALFSHELLED HEROES THE TRIO OF MUSCLEBOUND RODENTS SWIG ROOT BEER MUNCH HOT DOGS AND CRACK WISE ALL TO THE SOUND OF HEAVY METAL MUSIC IN A SYNDICATED TELEVISION SERIES SLATED FOR THIS FALL WHEN IN DOUBT CREATORS TRADE OFF WHAT'S HOT JURASSIC PARK MAY WELL BE THE TOP MOVIE BLOCKBUSTER OF THE CROWDED SUMMER SO PLENTY OF OTHER DINOSAURRELATED PROPERTIES WILL BE STRUTTING THEIR STUFF JUST IN CASE JURASSIC PARK HASN'T SPAWNED ENOUGH DINOSALES THEY INCLUDE CADILLACS AND DINOSAURS A SELFEXPLANATORY CARTOON SLATED FOR CBS'S FALL SEASON AND WE'RE BACK A DINOSAUR STORY A CHILDREN'S ANIMATED FEATURE FROM MCA/UNIVERSAL DUE AROUND THANKSGIVING AND THEN THERE'S THE RELENTLESSLY CHEERFUL BARNEY LICENSING EXECUTIVES SAY THE POPULAR PURPLE ONE STANDS TO SOAK UP THE PRESCHOOL BUSINESS THAT JURASSIC PARK MERCHANDISE COULD LOSE IF PRESCHOOLERS FIND THE FILM TOO SCARY PERHAPS PERFECTLY POSITIONED TO CASH IN ON THE DINOSAUR FAD AND HIS STATUS AS A CLASSIC CHARACTER IS NONE OTHER THAN FRED FLINTSTONE WHOSE MODERN STONE AGE FAMILY FIRST GRACED THE AIRWAVES IN 1960 THE FLINTSTONES' PREHISTORIC HIGH JINKS ARE THE SUBJECT OF ANOTHER SPIELBERG FILM THE FLINTSTONES WHICH MCA/UNIVERSAL PLANS TO RELEASE NEXT YEAR THE LIVEACTION FEATURE STARS ROSEANNE HUBBIE JOHN GOODMAN AS FRED RICK MORANIS AS BARNEY RUBBLE AND BELIEVE IT OR NOT ELIZABETH TAYLOR IN A CAMEO ROLE THERE ARE PLACES IN THIS COUNTRY WHERE YOU CAN SEE THE FLINTSTONES THREE TIMES A DAY SAYS FRED SEIBERT PRESIDENT OF HANNABARBERA YOU CAN'T SAY THAT ABOUT ALMOST ANY OTHER ANIMATED CHARACTER HANNABARBERA A UNIT OF TURNER BROADCASTING SYSTEM OWNS THE FLINTSTONES AND IS DISTRIBUTING THE FILM OVERSEAS THIS COULD ALSO BE A BIG COMEBACK YEAR FOR OTHER SEASONED PROPERTIES HANNABARBERA IS EXPECTING A BOOST FOR TOM AND JERRY WHEN THE CATANDMOUSE FLICK TOM AND JERRY THE MOVIE IS RELEASED IN THE US THIS SUMMER TWENTIETH CENTURY FOX WILL BE PUSHING ALVIN AND THE CHIPMUNKS TIED TO THEIR 35TH ANNIVERSARY TV SPECIAL THIS FALL AND THE BEVERLY HILLBILLIES TIED TO A MOVIE SLATED FOR A HOLIDAY RELEASE YET THE UNKNOWNS HOLD OUT THE PROMISE OF THE BIGGEST PAYOUT SEVERAL EXECUTIVES HAVE THEIR EYE ON BARBEARIANS A NEW ANIMATED ACTION PROPERTY WITH CREDENTIALS ITS CREATOR FUNATIX OF NORTHAMPTON MASS INCLUDES SEVERAL ACTUAL VETERANS OF THE TEENAGE MUTANT NINJA TURTLES INCLUDING THEIR COCREATOR PETER LAIRD THE SAGA OF ANTHROPOMORPHIC BEARS OF THE FUTURE WHO BATTLE REPTILIAN BAD GUYS ON THE PLANET URSUS PROBABLY WON'T BE ON TV UNTIL 1994 BUT A MAJOR TOY MAKER HAS ALREADY SNAPPED UP THE MASTER TOY LICENSE EXECUTIVES SAY AND HERE'S A NEW PROPERTY THAT MAY BE LUCKY TO LAST FOUR YEARS SOCKS THE CAT THE PRESIDENTIAL PET KANEKO USA LTD IS LICENSING THE SOCKS LIKENESS FROM PRESIDENTIAL SOCKS PARTNERSHIP INC OF ARLINGTON VA FOR A VIDEO GAME IN SOCKS ROCKS THE HOUSE THE FIRST CAT SEARCHES THE WHITE HOUSE FOR A FORMER KGB AGENT WHO IS INTENT ON DESTROYING EVERYONE IN WASHINGTON BY DETONATING THE RUSH LIMBOMB GENERAL MOTORS CORP IS BREAKING THE FIRST WAVE OF ADVERTISING FOR ITS GOLD MASTERCARD TODAY WITH A CONSUMER PRINT CAMPAIGN FROM THE BLOOMFIELD HILLS MICH OFFICE OF D'ARCY MASIUS BENTON & BOWLES GENERAL MOTORS IS SPENDING ABOUT 10 MILLION ON THE CAMPAIGN SAID RONALD ZEBECK MANAGING DIRECTOR OF GM'S CARD OPERATIONS IN PUBLICATIONS INCLUDING USA TODAY THE NEW YORK TIMES THE NEW YORKER TIME AND FORTUNE WITH THE TAGLINE DON'T SPEND MORE SPEND SMARTER THE ADS ILLUSTRATE DOLLARSANDCENTS BONUSES THAT CARD USERS CAN ACCRUE TOWARD A PURCHASE OF A GM CAR WHEN USING THE CARD FOR SUCH PURCHASES AS GASOLINE FLOWERS OR APPAREL MR ZEBECK SAID THE CAMPAIGN ISN'T CURRENTLY SLATED FOR TV MR ZEBECK SAID GM IS DELIBERATELY AVOIDING THE SNOOTY TONE OF OTHER GOLDCARD ADVERTISING WHICH CAN ALIENATE CONSUMERS HE SAID IN REALITY YOU ONLY NEED A HOUSEHOLD INCOME OF 30000 TO GET A GOLD CARD HE SAID PEOPLE HAVE A BIAS AGAINST CREDIT CARD COMPANIES' TRYING TO PUSH THEM INTO DEBT REMY REMY AMERIQUE THE US DISTRIBUTOR OF REMY MARTIN COGNAC TAPPED WPP GROUP'S MARTIN AGENCY BASED IN RICHMOND VA FOR ITS ESTIMATED 5 MILLION COGNAC ACCOUNT PREVIOUSLY AT MARGEOTES FERTITTA & WEISS NEW YORK REMY COINTREAU GROUP OF FRANCE PRODUCES REMY MARTIN WHO'S NEWS ALBERT FRANKGUENTHER LAW A UNIT OF AFGL INTERNATIONAL NAMEDES H FEENEY PRESIDENT OF THE AGENCY MR FEENEY WAS DIRECTOR OF NEW BUSINESS AT AMIL GARGANO & PARTNERS NEW YORK MR FEENEY SUCCEEDS WALTER GUARINO WHO LEFT THE AGENCY IN 1992 DISNEY WALT DISNEY CO BURBANK CALIF SAID IT REACHED AN AGREEMENT TO LICENSE ITS ANIMATED CHARACTERS FOR CONSUMER PRODUCTS IN SAUDI ARABIA AND THE GULF STATES CTC CONSUMER PRODUCTS A DIVISION OF CONTRACTING & TRADING CO OWNED BY THE JAWA FAMILY OF SAUDI ARABIA WILL SERVE AS THE EXCLUSIVE CONSUMER PRODUCTS LICENSING ENTITY FOR DISNEY IN THE REGION 9306140072 930614 BUSINESS BRIEF MITSUI OSK LINES LTD PRETAX PROFIT JUMPED 84 NET TRIPLED IN FISCAL YEAR JAPAN'S MITSUI OSK LINES LTD REPORTED AN 84 JUMP IN CONSOLIDATED PRETAX PROFIT TO 87 BILLION YEN 819 MILLION FOR THE YEAR ENDED MARCH 31 FROM 474 BILLION YEN FOR THE YEAREARLIER PERIOD NET INCOME TRIPLED TO 704 BILLION YEN FROM 234 BILLION YEN ON A 6 INCREASE IN REVENUE TO 67307 BILLION YEN FROM 63735 BILLION YEN THE YEAR EARLIER PRETAX PROFIT CLIMBED WITH HELP FROM A RISE IN NONOPERATING PROFIT AND A DECLINE IN NONOPERATING COSTS THE COMPANY'S FINANCIAL REPORT SAID COMPANY OFFICIALS WEREN'T AVAILABLE FRIDAY TO COMMENT MITSUI A SHIPPING COMPANY DIDN'T OFFER ESTIMATES FOR ITS CONSOLIDATED EARNINGS PERFORMANCE FOR THE CURRENT FISCAL YEAR ENDING MARCH 31 1994 9306140071 930614 INTERNATIONAL SOUTH KOREA ARRESTS EXCHAIRMAN CHARGING LABOR LAW VIOLATIONS SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA PROSECUTORS ARRESTED BAI JONG RYUL FORMER CHAIRMAN OF BANKRUPT HANYANG GROUP ON CHARGES OF VIOLATING SOUTH KOREA'S LABOR AND INDUSTRIAL SAFETY LAWS MR BAI 55 YEARS OLD IS CHARGED WITH FAILING TO CLEAR THE DELAYED PAYMENT OF 2038 BILLION WON 2542 MILLION IN WAGES AND ALLOWING INDUSTRIAL ACCIDENTS LAST YEAR THAT KILLED 15 WORKERS AND INJURED 158 MR BAI ALSO IS BEING INVESTIGATED ON SUSPICION OF MISAPPROPRIATING 166 BILLION WON FROM THE COMPANY AND BUYING REAL ESTATE AND SECURITIES UNDER FALSE NAMES THE PROSECUTORS SAID IT WAS THE FIRST TIME THAT SOUTH KOREA PROSECUTORS HAVE ARRESTED A CORPORATE CHAIRMAN ON CHARGES CONNECTED WITH FAILING TO PAY WAGES 9306140070 930614 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH SWITCHING VENTURE FORMED WITH INDIA'S TATA INDUSTRIES AMERICAN TELEPHONE & TELEGRAPH CO SAID IT FORMED A JOINT VENTURE WITH TATA INDUSTRIES LTD OF INDIA TO MAKE CENTRALOFFICE SWITCHING EQUIPMENT FOR INDIA'S TELECOMMUNICATIONS MARKET AT&T HOLDS A 51 MAJORITY IN THE EQUITY PARTNERSHIP WHILE TATA INDUSTRIES HOLDS THE REMAINING 49 IN THE AGREEMENT WHICH IS VALUED AT ABOUT 35 MILLION THE VENTURE WAS FORMED TO MAKE AND MARKET THE 5ESS SWITCHING SYSTEM AT&T'S FLAGSHIP SWITCHING PRODUCT THE SWITCHES WOULD ALLOW THE CONNECTION OF MORE SUBSCRIBERS IN URBAN AND RURAL AREAS NEW SERVICES TO BUSINESSES AND RESIDENCES IMPROVED CALLCOLLECTION RATES AND GREATER ACCESS TO THE COMMUNICATIONS NETWORK FOR VOICE DATA AND VIDEO SERVICES ACCORDING TO AT&T THE MANUFACTURING FACILITY WILL BE LOCATED IN THE CITY OF BANGALORE WITH CONSTRUCTION EXPECTED TO BEGIN LATER THIS YEAR MANUFACTURING WILL BEGIN WITHIN A YEAR OF THE START OF CONSTRUCTION AT&T SAID 9306140069 930614 BUSINESS BRIEF RH MACY & CO RETAILER'S LOSS NARROWED IN FISCAL THIRD QUARTER RH MACY & CO NEW YORK SAID LOWER OPERATING EXPENSES HELPED IT REPORT A SLIGHTLY NARROWER NET LOSS IN ITS FISCAL THIRD QUARTER COMPARED WITH A YEAR AGO FOR THE QUARTER ENDED MAY 1 THE CLOSELY HELD RETAILER POSTED A LOSS OF 228 MILLION WHICH INCLUDED A 174 MILLION CHARGE FOR COSTS ASSOCIATED WITH ITS BANKRUPTCYLAW REORGANIZATION THE YEAREARLIER LOSS WAS 226 MILLION INCLUDING A 166 MILLION REORGANIZATION CHARGE IT FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS IN JANUARY 1992 SALES ROSE 2 TO 133 BILLION FROM 13 BILLION THE COMPANY'S CHAIRMAN MYRON E ULLMAN III SAID WE ARE PLEASED THAT MACY'S HAS CONTINUED TO EXCEED PLANNED PERFORMANCE LEVELS IN APRIL FOR THE THIRD CONSECUTIVE MONTH THE COMPANY SAID IT MET ITS GOAL FOR EARNINGS BEFORE INTEREST TAXES DEPRECIATION AND AMORTIZATION THE COMPANY OPERATES 110 MACY'S AND BULLOCK'S DEPARTMENT STORES 13 I MAGNIN STORES AND 72 SPECIALTY STORES 9306140068 930614 ECONOMY POLICYHOLDERS OF BANKRUPT INSURERS GET PRIORITY OVER US CLAIMS JUSTICES RULE BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID STATES MAY PROTECT THE INTERESTS OF POLICYHOLDERS OVER THOSE OF THE FEDERAL GOVERNMENT IN LIQUIDATIONS OF FAILED INSURANCE COMPANIES HOWEVER STATES MAY NOT GIVE PRIORITY TO CLAIMS OF BUSINESS CREDITORS OR EMPLOYEES OF FAILED INSURERS OVER THOSE OF THE US TREASURY THE HIGH COURT SAID THE QUESTION OF WHO GETS PRECEDENCE IN INSURANCE BANKRUPTCY PROCEEDINGS HAS BECOME INCREASINGLY IMPORTANT AS INSURANCE COMPANY FAILURES HAVE RISEN IN RECENT YEARS AS A GENERAL MATTER OF BANKRUPTCY LAW A FEDERAL STATUTE GIVES THE FEDERAL GOVERNMENT PRIORITY OVER OTHER PARTIES WITH CLAIMS AGAINST AN INSOLVENT COMPANY OR PERSON IN CONFLICT WITH THAT LAW 35 STATES HAVE ENACTED STATUTES ON INSURANCE COMPANY LIQUIDATIONS THAT PUT POLICYHOLDER CLAIMS AHEAD OF THE FEDERAL GOVERNMENT'S LOWER COURTS HAD CLASHED ON WHETHER THE FEDERAL OR STATE LAWS GOVERN FIGHTS OVER THE REMAINS OF FAILED INSURERS IT'S UNUSUAL IN THESE PROCEEDINGS FOR THERE TO BE ANY MONEY LEFT ONCE CLAIMS UNDER POLICIES ARE PAID THE CASE THE JUSTICES DECIDED FRIDAY INVOLVED THE 1986 FAILURE OF AN OHIO INSURANCE CONCERN AMERICAN DRUGGISTS' INSURANCE CO IN THE LIQUIDATION PROCEEDINGS THE US GOVERNMENT FILED CLAIMS OF NEARLY 11 MILLION REPRESENTING MONEY OWED THE GOVERNMENT BY OTHER PARTIES THAT WAS BONDED BY THE INSURANCE COMPANY THE GOVERNMENT ASSERTED THAT ITS CLAIMS SHOULD BE SATISFIED BEFORE ANY OTHERS BUT OHIO OFFICIALS POINTED TO A STATE LAW THAT PLACED THE CLAIMS OF POLICYHOLDERS AND EMPLOYEES AMONG OTHERS AHEAD OF THE FEDERAL GOVERNMENT'S THE OHIO OFFICIALS ARGUED THAT THEY SHOULD PREVAIL BECAUSE OF A SEPARATE FEDERAL LAW THE MCCARRANFERGUSON ACT WHICH GIVES STATES BROAD AUTHORITY TO REGULATE THE INSURANCE BUSINESS REVERSING A FEDERAL TRIAL JUDGE'S RULING THE FEDERAL APPEALS COURT IN CINCINNATI SAID THAT THE MCCARRANFERGUSON ACT GIVES STATES THE POWER TO SET PRIORITIES IN INSURANCECOMPANY INSOLVENCY PROCEEDINGS THE FEDERAL GOVERNMENT APPEALED TO THE SUPREME COURT WHICH PARTIALLY AFFIRMED THE APPEALS COURT DECISION BY A 54 VOTE THE HIGH COURT SAID THAT PROTECTING POLICYHOLDERS' CLAIMS IS AN ASPECT OF REGULATING THE BUSINESS OF INSURANCE THEREFORE THE MCCARRANFERGUSON ACT ALLOWS STATES TO GIVE PRIORITY TO POLICYHOLDERS JUSTICE HARRY BLACKMUN WROTE IN THE MAJORITY OPINION HE ADDED THAT ADMINISTRATIVE COSTS OF THE LIQUIDATION SHOULD ALSO BE PAID BEFORE THE US GETS ANY MONEY BUT JUSTICE BLACKMUN DISTINGUISHED OHIO'S EFFORT TO PROTECT OTHER CLAIMS INCLUDING THOSE OF EMPLOYEES AND BUSINESS CREDITORS AS NOT CRITICALLY RELATED TO THE REGULATION OF INSURANCE IN THE SAME WAY AS PROTECTION OF POLICYHOLDERS IS WRITING FOR THE DISSENTERS JUSTICE ANTHONY KENNEDY SAID THAT THE MAJORITY'S COMPROMISE OF LETTING STATES PROTECT POLICYHOLDERS BUT NOT OTHER CREDITORS WAS APPEALING BUT NOT LOGICAL HE ASSERTED THAT STATE RULES ON INSURER LIQUIDATIONS ARE ESSENTIALLY ABOUT BANKRUPTCY NOT INSURANCE AS A RESULT HE CONTINUED THE STATES AREN'T DUE ANY DEFERENCE ON THE QUESTION OF WHO GETS FIRST CRACK AT THE MONEY US VS FABE 9306140067 930614 BUSINESS BRIEF INTERFACE INC GEORGIA CONCERN TO ACQUIRE MOST OF BENTLEY MILLS INC INTERFACE INC SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO ACQUIRE MOST OF BENTLEY MILLS INC FOR 81 MILLION INCLUDING 25 MILLION OF A NEW FORM OF INTERFACE CONVERTIBLE PREFERRED STOCK BENTLEY MILLS BASED IN CITY OF INDUSTRY CALIF IS A CLOSELY HELD MAKER OF COMMERCIAL CARPETING AND CARPET TILES INTERFACE BASED IN LA GRANGE GA MANUFACTURES CARPET TILES AND INTERIOR FABRICS INTERFACE HAD DISCLOSED ITS INTENTION TO ACQUIRE ALL OF BENTLEY MILLS THE COMPANY SAID IT HAS AGREED TO ACQUIRE FROM BENTLEY MILLS CHIEF EXECUTIVE OFFICER ROYCE RENFROE AND OTHER HOLDERS 85 OF BENTLEY'S SENIOR PREFERRED AND CLASS B STOCK AND ACQUIRED THE REST IN A SEPARATE TRANSACTION INTERFACE ALSO AGREED TO BUY 83 OF BENTLEY'S JUNIOR PREFERRED STOCK AND 91 OF ITS CLASS A STOCK FROM MR RENFROE AND RELATED PARTIES AND HAS EXTENDED PURCHASE OFFERS TO THE OTHER HOLDERS 9306140066 930614 BUSINESS BRIEF MANOR CARE INC CHOICE HOTELS UNIT TO BUY ASSETS OF FRANCE'S INOVEST CHOICE HOTELS INTERNATIONAL INC A SILVER SPRING MD HOTEL FRANCHISING SUBSIDIARY OF MANOR CARE INC SAID IT IS ACQUIRING CERTAIN ASSETS AND TRADEMARKS OF INOVEST A FRENCH RESTAURANT AND HOTEL GROUP THAT WILL ADD AS MANY AS 163 PROPERTIES TO CHOICE'S OPERATIONS IN EUROPE CHOICE WHICH FRANCHISES MORE THAN 2900 HOTELS IN 28 COUNTRIES SAID THE ASSETS AND TRADEMARKS INCLUDE RESTHOTEL PRIMEVERE AND RESTHOTEL SAPHIR GERALD PETTIT CHOICE'S PRESIDENT SAID A PURCHASE PRICE ISN'T AVAILABLE BUT SAID THE TRANSACTION SHOULD BE COMPLETED WITHIN 90 DAYS MR PETTIT SAID THE PURCHASE WILL GIVE CHOICE BETWEEN 90 AND 125 HOTELS INITIALLY BUT COULD BE EXPANDED TO 144 HOTELS IN FRANCE AND 19 PRIMEVERE PROPERTIES OPEN OR UNDER DEVELOPMENT IN SIX OTHER COUNTRIES THE PROPERTIES WILL BE RECAST UNDER CHOICE'S LIMITEDSERVICE COMFORT INN AND MIDPRICED QUALITY INN BRANDS IN COMPOSITE TRADING FRIDAY ON THE NEW YORK STOCK EXCHANGE MANOR CARE'S STOCK CLOSED AT 20375 DOWN 125 CENTS 9306140065 930614 BUSINESS BRIEF TOYOTA MOTOR CO COMPANY SEES TOUGH' TIME IN MEETING EARNINGS GOALS TOYOTA MOTOR CO WON'T LOWER ITS OFFICIAL FORECAST FOR SALES AND PROFIT IN THE FISCAL YEAR ENDING JUNE 30 A SPOKESMAN FOR THE NO 1 JAPANESE AUTO MAKER SAID BUT HE INDICATED THAT THE SURGING YEN MAY LEAD TO AN EARNINGS SHORTFALL WE'RE THINKING IT WOULD BE NICE TO MEET THE PROJECTION FOR UNCONSOLIDATED PRETAX PROFIT OF 300 BILLION YEN 283 BILLION AND NET PROFIT OF 150 BILLION YEN ON SALES OF THREE TRILLION YEN HE SAID BUT THE SITUATION IS BECOMING TOUGHER AND TOUGHER WE HAVE TO TAKE EFFORTS TO MAKE SURE WE CAN ACHIEVE THE GOALS THE SPOKESMAN NONETHELESS DENIED A FRONTPAGE ARTICLE IN THE LEADING NIHON KEIZAI SHIMBUN NEWSPAPER FRIDAY THAT TOYOTA WOULD SEE PRETAX PROFIT SINK TO A 10YEAR LOW OF 290 BILLION YEN TO MARK THE FIRST TIME PRETAX PROFIT WAS BELOW 300 BILLION YEN SINCE TOYOTA MERGED WITH TOYOTA MOTOR SALES CO IN 1982 9306140064 930614 ARGENTINA'S AUTO PRODUCTION BUENOS AIRES A CUSTOMS STRIKE IN BRAZIL LAST MAY HINDERED IMPORTS OF SPARE PARTS BUT NOT ENOUGH TO BLOCK THE UPWARD TREND IN AUTOMOBILE PRODUCTION THE ARGENTINE AUTO MAKERS ASSOCIATION ADEFA SAID THE ASSOCIATION'S MONTHLY REPORT SAID PRODUCTION IN MAY TOTALED 27884 CARS UP 76 FROM 25900 LAST APRIL SALES WERE UP 94 TO 28350 CARS THE BIGGEST PRODUCER IN MAY WAS SEVEL FIATPEUGEOT WITH 12100 CARS FOLLOWED BY INTERAMERICANA RENAULT WITH 7800 AND AUTOLATINA FORDVOLKSWAGEN WITH 7100 9306140063 930614 BUSINESS BRIEF MCDONNELL DOUGLAS CORP WIDEBODY AIRLINER IS SOLD TO CHINA EASTERN AIRLINES MCDONNELL DOUGLAS CORP SAID IT SOLD AN MD11 WIDEBODY AIRLINER TO CHINA EASTERN AIRLINES OF SHANGHAI TO BE DELIVERED IN DECEMBER TERMS WEREN'T DISCLOSED THE MD11 USUALLY SELLS FOR ABOUT 100 MILLION THE AIRCRAFT THE SIXTH OF THE MCDONNELL DOUGLAS TRIJETS TO BE PURCHASED BY THE AIRLINE WILL BE POWERED BY PRATT & WHITNEY PW4460 ENGINES PRATT & WHITNEY IS A UNIT OF UNITED TECHNOLOGIES CORP SEPARATELY THE ST LOUIS AEROSPACE CONCERN ANNOUNCED AT THE PARIS AIR SHOW THAT IT SIGNED AN AGREEMENT WITH ELBIT LTD OF HAIFA ISRAEL TO JOINTLY MARKET A HELMETMOUNTED TARGETING AND DISPLAY SYSTEM CALLED DASH TO BE USED BY PILOTS OF MCDONNELL DOUGLAS'S F/A18 HORNET FIGHTER PLANES THE HELMETS FEATURE DISPLAYS INSIDE THE VISOR THAT GIVE PILOTS INFORMATION ABOUT THE AIRCRAFT'S ANGLE OF ATTACK ALTITUDE AND WEAPONS SYSTEMS 9306140062 930614 LETTERS TO THE EDITOR SO SUE ME YOUR MAY 5 PAGEONE ARTICLE IS PATRICIA MCCOLM A VEXATIOUS LITIGANT' OR ACCIDENTPRONE GIVES ONE PAUSE FOR THOUGHT ABOUT WHETHER OUR JUDICIAL SYSTEM BY BENDING OVER BACKWARD TO AFFORD EVERYONE HIS OR HER DAY IN COURT SERVES THE BEST INTERESTS OF SOCIETY OUR COURTS ARE SO CLOGGED BY PEOPLE SUING THE DEEP POCKETS OF PERCEIVED RICH CORPORATIONS OR THEIR INSURANCE COMPANIES FOR BOTH REAL AND IMAGINED WRONGS THAT WE ARE IN THE MIDST OF INSTITUTIONAL GRIDLOCK ALL TOO MANY SUITS ARE BEING FILED NOT BECAUSE OF THEIR MERITS BUT BECAUSE THE PLAINTIFF HOPES THE DEFENDANT WILL SETTLE OUT OF COURT THIS IS THINLY DISGUISED BLACKMAIL PERHAPS WE SHOULD ONCE AND FOR ALL ADOPT THE ENGLISH SYSTEM OF CIVIL SUITS WHEREBY THE LOSER PAYS LET PEOPLE SUE TO THEIR HEART'S CONTENT BUT LET THEM SUE KNOWING FIRST THAT IF THEIR POSITION IS FRIVOLOUS OR WON'T PREVAIL THEY ARE LIABLE FOR THE DEFENDANT'S LEGAL COSTS 9306140061 930614 DAEWOO WINS CHINESE CONTRACT SEOUL SOUTH KOREA DAEWOO SHIPBUILDING & HEAVY MACHINERY LTD SAID IT HAS WON A 50 MILLION CONTRACT TO BUILD TWO 44000TON BULK CARRIERS FOR CHINA THE CONTRACT WAS SIGNED IN HONG KONG EARLY LAST WEEK DAEWOO SAID IT IS THE FIRST CHINESE ORDER RECEIVED BY A SOUTH KOREAN SHIPYARD DAEWOO SAID IT WILL DELIVER THE CARRIERS IN 1994 AND 1995 9306140060 930614 LETTERS TO THE EDITOR STRAIGHT TALK MY SYMPATHIES TO HAROLD A SEGALL OVER HIS DISTRESS LETTERS MAY 26 THAT THE WORD GAY HAS LOST ITS MEANING OF MERRY AS IT HAS COME TO MEAN HOMOSEXUAL HOWEVER MR SEGALL HAS HIS HISTORY BACKWARD THE WORD GAY IN THE SENSE OF HOMOSEXUAL WAS ALREADY IN USE IN THE 1860S AS A REVIEW OF WALT WHITMAN'S LETTERS REVEALS SOME YEARS BEFORE THE WORD HOMOSEXUAL WAS COINED IN THE 1880S BUT WHY IS IT THAT STRAIGHTS IN USE AS MEANING HETEROSEXUAL SINCE AT LEAST THE 1890S CAN SO OFTEN FIND TIME TO BEMOAN THE LOSS OF THE PRISTINE MEANING OF GAY BUT NEVER SEEM TO HAVE TIME TO MENTION THE LOSS OF THE PRISTINE MEANINGS OF QUEER QUEEN FAIRY FAGGOT PANSY SWISH AND A HOST OF OTHERS 9306140059 930614 BUSINESS BRIEF CLUB MED INC JOINT VENTURE IS TO CREATE A VACATION VILLAGE IN CHINA CLUB MED INC NEW YORK PLANS TO OPEN IN 1995 ITS FIRST VACATION VILLAGE IN CHINA THROUGH A JOINT VENTURE WITH SANYA LUHUOLTU TOURIST AREA DEVELOPMENT CORP THE VILLAGE WHICH WILL BE LOCATED ON THE ISLAND OF HAINAN OFF THE COAST OF GUANGDONG PROVINCE WILL INCLUDE AN 18HOLE GOLF COURSE MARINA AND CASINO AND WILL CATER TO UPSCALE CLIENTELE FROM SOUTHEAST ASIA JAPAN AMERICA AND EUROPE CLUB MED WILL HANDLE THE TECHNICAL DEVELOPMENT MANAGEMENT MARKETING AND INTERNATIONAL SALES OF THE RESORT AND SANYA WILL FINANCE ALL INVESTMENTS TERMS OF THE DEAL WEREN'T DISCLOSED CLUB MED SAID IT PLANS TO USE THE VENTURE AS A SPRINGBOARD FOR EXPANSION IN CHINA WHICH HAS THE FASTEST GROWING TOURISM INDUSTRY IN ASIA 9306140058 930614 HEARD ON THE STREET SHOWBIZ PIZZA'S MELTDOWN HAS CONNOISSEURS REVIEWING THEIR LISTS OF TRENDY RESTAURANTS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL CHUCK E CHEESE GOT HIS HEAD HANDED TO HIM FRIDAY SHARES OF THE KIDDIERESTAURANT CHAIN SHOWBIZ PIZZA TIME WHERE MR CHEESE IS THE MASCOT DIVED 35 IN WILD OVERTHECOUNTER TRADING AND SO BARELY A WEEK AFTER THE CASINOSTOCK SECTOR GOT CLOBBERED INVESTORS ARE WONDERING IF THE HIGHFLYING RESTAURANT GROUP IS THE NEXT TO GO SEVERAL RESTAURANT CHAINS ARE TRADING AT UNCOMMONLY HIGH LEVELS AS CASINO STOCKS WERE THE SWOON IN SHOWBIZ PIZZA AFTER A DISAPPOINTING PROFIT ESTIMATE SUGGESTS HOW VULNERABLE SUCH TRENDY STOCKS ARE ALL YOU HAVE TO MAKE IS A LITTLE MISTAKE IN THIS MARKET YOU ONLY HAVE TO BE OFF BY PENNIES A SHARE AND INVESTORS FLEE SAYS LANCE ZIPPER HEAD OF OTC TRADING AT KIDDER PEABODY SHOWBIZ PIZZA PLUNGED 10 1/8 FRIDAY TO 18 3/4 ON NASDAQ AFTER THE IRVING TEXAS COMPANY DISCLOSED A REDUCED PROFIT ESTIMATE OF 18 CENTS TO 20 CENTS A SHARE FOR THE SECOND QUARTER WHEN THE STREET EXPECTED 27 OR 28 CENTS BEFORE THE FALL THE STOCK TRADED AT A BUOYANT BUT HARDLY ASTRONOMICAL 24 TIMES REPORTED EARNINGS THE COMPANY BLAMED DECLINES IN COMPARABLESTORE SALES IN APRIL MAY AND JUNE CAUSED PARTLY BY INEFFECTIVE ADVERTISING AND A SLOWDOWN IN STORE REMODELINGS AN ASTOUNDING 41 MILLION SHARES TRADED FRIDAY 50 TIMES THE STOCK'S NORMAL DAILY VOLUME WHO'S NEXT OTHER FASHIONABLE RESTAURANT STOCKS WITH HIGH PES INCLUDE LONE STAR STEAKHOUSE & SALOON AT MORE THAN 70 OUTBACK STEAKHOUSE AT 57 AND CHECKER'S DRIVEIN RESTAURANTS AT 47 ALL THESE STOCKS DECLINED LAST WEEK AND ARE OFF THEIR 52WEEK HIGHS THE GROUP IS HEAVY AS ONE OTC TRADER PUT IT INVESTORS IN THESE COMPANIES MIGHT DO WELL TO HEED THE SHOWBIZ PIZZA DEBACLE THIS COMPANY HAD NEVER DISAPPOINTED ANYONE SINCE IT WAS A PUBLIC COMPANY THE ANNOUNCEMENT WAS A MAJOR SURPRISE SAYS DENNIS TELZROW OF THE PRINCIPAL/EPPLER GUERIN & TURNER IN DALLAS THE FIRST ANALYST TO RECOMMEND AND FOLLOW SHOWBIZ PIZZA WHEN IT STARTED TRADING IN 1989 HE SAYS THE PLUNGE SHOWS HOW WALL STREET TAKES NO PRISONERS IN THIS INSTITUTIONDOMINATED MARKET ALL THE ELEPHANTS TRY TO GET THROUGH THE EYE OF THE NEEDLE AT THE SAME TIME HE SAYS SHOWBIZ PIZZA IS A CHAIN OF RESTAURANTS IN WHICH PIZZAMUNCHING KIDS ARE TREATED TO SINGALONGS FROM A STAGE FEATURING A LARGE MECHANICAL MOUSE NAMED CHUCK E CHEESE AND OTHER CHARACTERS NEITHER THE FOOD NOR THE SPECIAL EFFECTS ARE TERRIBLY TRENDY BUT LITTLE KIDS SEEM TO LIKE IT THE COMPANY OPERATES 310 CHUCK E CHEESE'S AND SHOWBIZ PIZZA PLACE RESTAURANTS ALONG WITH 28 MONTEREY'S TEXMEX CAFES MR TELZROW SAYS OTHER RESTAURANT STOCKS WON'T NECESSARILY PLUNGE RIGHT AWAY SHOWBIZ PIZZA IS MORE OF AN ENTERTAINMENT CONCEPT FOR KIDS THAN A RESTAURANT HE SAYS HE ADDS THAT HE'D ALREADY PULLED HIS BUY RECOMMENDATION LAST NOVEMBER BECAUSE OF THE STOCK'S GAINS TO THAT POINT WITH FRIDAY'S ANNOUNCEMENT HE HAS REDUCED HIS PROFIT ESTIMATE FOR THIS YEAR TO 123 A SHARE FROM 138 LEAVING THE STOCK NOW AT 15 TIMES HIS PROJECTED EARNINGS IN AN INTERVIEW THE COMPANY'S CHAIRMAN RICHARD FRANK CALLED THE REVISED ESTIMATE REASONABLE RATHER THAN BUYING SHOWBIZ PIZZA AT ITS KNOCKEDDOWN PRICE MR TELZROW PREFERS OTHER SMALL CHAINS TRADED ON NASDAQ EL CHICO RESTAURANTS AND ONTHEBORDER CAFES MANY FORMER INVESTORS IN SHOWBIZ PIZZA HAVE BECOME ENAMORED OF HOT NEWLY PUBLIC DISCOVERY ZONE WHICH RUNS INDOOR PLAYGROUNDS FOR KIDS BUT CRAIG WEICHMANN OF MORGAN KEEGAN IN MEMPHIS STILL LOVES SHOWBIZ PIZZA IT'S A GOLDMINE BUYING OPPORTUNITY AT THIS LEVEL INSTITUTIONAL INVESTORS TRAMPLED EACH OTHER TRYING TO GET OUT OF THEIR SHOWBIZ PIZZA POSITIONS FRIDAY THE STOCK IN THE PAST HAS BEEN OWNED BY SOME OF WALL STREET'S BIGGEST NAMES INCLUDING MUTUALFUND GIANT FIDELITY INVESTMENTS WHICH HAD ABOUT A 13 STAKE AT ONE POINT BOSTONBASED FIDELITY SAYS IT REDUCED ITS HOLDINGS TO A MINIMAL AMOUNT MONTHS AGO WHERE DOES SHOWBIZ PIZZA GO FROM HERE THE COMPANY CLAIMS IT CAN STILL ACHIEVE ITS GOAL OF 20 TO 25 EARNINGS GROWTH THROUGH CONTINUED EXPANSION AND MARKETING MR FRANK SAYS THE COMPANY STILL PLANS TO COMPLETE REMODELING PLANS THIS YEAR FOR AS MANY AS 30 RESTAURANTS IT ALSO PLANS TO OPEN ABOUT 35 RESTAURANTS THIS YEAR AND 45 NEXT YEAR MR FRANK PROMISES MORE EFFECTIVE ADVERTISING AND VOWS WE'LL BE BACK 9306140057 930614 CARDINAL DISTRIBUTION DEBENTURES DUBLIN OHIO CARDINAL DISTRIBUTION INC SAID IT WILL REDEEM ALL 75 MILLION OF ITS 7 1/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2015 AT 105075 PLUS ACCRUED INTEREST OF 20 CENTS FOR EACH 1000 OF PRINCIPAL AMOUNT HOLDERS ALSO CAN CONVERT THE DEBENTURES INTO 4568 SHARES FOR EACH 1000 PRINCIPAL AMOUNT CARDINAL IS A PHARMACEUTICAL AND MEDICAL SUPPLY CONCERN 9306140056 930614 WORLD STOCK MARKETS KOREAN PROPOSAL ON FOREIGN HOLDERS LACKS A TIMETABLE BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL SEOUL SOUTH KOREA EIGHTEEN MONTHS AFTER SOUTH KOREA'S GOVERNMENT OPENED THE COUNTRY'S STOCK MARKET A BIT TO FOREIGNERS IT'S TEASING THEM ABOUT WHEN ITS DOORS MIGHT OPEN WIDER FINANCE MINISTER HONG JAEHYONG TOLD A KOREAN NEWSPAPER LAST WEEK THAT THE CURRENT LIMIT ON FOREIGN OWNERSHIP 10 OF LISTED COMPANIES' SHARES WOULD BE RAISED A FEW TIMES IN THE NEXT FIVE YEARS BUT MR HONG MENTIONED NEITHER A TIMETABLE NOR A LEVEL AT WHICH THE LIMIT MIGHT ULTIMATELY BE SET PREDICTING SUCH CRUCIAL DETAILS IS THE BIG GUESSING GAME SAYS SEAN GOLDRICK CHIEF REPRESENTATIVE FOR JAMES CAPEL & CO HERE AS LONG AS THE GOVERNMENT'S POLICIES ON FOREIGN STOCK INVESTMENT AREN'T CLEAR FOREIGN INVESTORS ARE HESITANT TO PLUNGE INTO THE KIND OF ACTIVITY THEY'VE DEVELOPED TO COPE WITH OWNERSHIP LIMITS IN OTHER ASIAN MARKETS AT ISSUE OFFICIALLY IS THE GOVERNMENT'S FEAR THAT A TIDE OF FOREIGN CASH WOULD SWAMP KOREA'S MONEY SUPPLY AND SPARK INFLATION MANY ECONOMISTS IN SEOUL SUGGEST THAT FEAR IS SPURIOUS WHY THEY MAKE THIS ARGUMENT IS A MYSTERY TO ME SAYS ONE WHO ASKS NOT TO BE IDENTIFIED SOME BROKERS THINK INSTEAD THAT THE POLICY STEMS PARTLY FROM KOREA'S TRADITIONAL FEAR OF FOREIGN MEDDLING INDEED THE US GOVERNMENT IS AMONG THOSE NOW PRESSING KOREA TO OPEN ITS STOCK MARKET FURTHER ONE US OFFICIAL SAID THIS YEAR'S REBOUND HAS MADE THE LIMITS ON FOREIGN OWNERSHIP PAINFUL FOREIGNERS HAVE BOUGHT ABOUT 90 OF THE MARKET CAPITALIZATION THEY ARE ALLOWED TO OWN VIRTUALLY FILLING THE LIMITS FOR ABOUT 160 OF KOREA'S 694 LISTED COMPANIES SAYS MR GOLDRICK RICHARD SAMUELSON AN ANALYST AT SG WARBURG SECURITIES FAR EAST LTD NOTICED LAST WEEK THAT HIS FIRM HAD JUST ADVISED CLIENTS TO BUY TWO BLUECHIP STOCKS THAT HAD ALREADY REACHED THEIR LIMITS EVEN IF FOREIGNOWNERSHIP LIMITS ARE RAISED TO 15 HE FIGURES THEY WOULD PROBABLY BE FILLED ON KOREA'S MOST DESIRABLE STOCKS WITHIN TWO MONTHS IN OTHER ASIAN MARKETS FOREIGNERS HAVE COPED WITH SUCH LIMITS SIMPLY BY TRADING STOCKS AMONG THEMSELVES ONCE AN ISSUE'S FOREIGNOWNERSHIP CEILING IS REACHED THE RELATIVE SCARCITY OF FOREIGN SHARES MEANS SUCH TRADES OFTEN OCCUR AT A SLIGHT PREMIUM TO THEIR PRICES IN THE LOCAL MARKET BUT RARELY AT DISCOURAGING LEVELS INVESTORS LOOKING NOW TO BUY KOREAN SHARES CAN EXPECT NO SUCH LUXURY FOR ONE THING KOREA'S UNOFFICIAL OVERTHECOUNTER MARKET FOR FOREIGNERS IS CONDUCTED BY EDUCATED GUESS NEITHER BROKERS NOR THE GOVERNMENT HAVE SET UP A SYSTEM TO DISPLAY THE BEST PRICES AT WHICH COMPETING FOREIGN INVESTORS ARE WILLING TO BUY OR SELL A STOCK MORE IMPORTANT UNCERTAINTY ABOUT THE FUTURE OF THE LIMITS HAS CONVINCED MANY INVESTORS THAT IT'S SAFEST SIMPLY TO HOLD WHAT THEY HAVE THOSE WHO PAY A PREMIUM FOR SHARES RISK LOSING IT IF THE GOVERNMENT SUDDENLY LOOSENS THE FOREIGNINVESTMENT CEILINGS AND IF THE POLICIES DON'T CHANGE THOSE WHO SELL SHARES RISK NOT BEING ABLE TO BUY THEM BACK CHEAPLY WHEN HOPES FOR EARNINGS GROWTH ARE STRONG EVEN HIGH PRICES CAN'T ALWAYS COAX SHARES AWAY FROM THEIR HOLDERS ROBIN HOW DIRECTOR OF COUNTY NATWEST INVESTMENT MANAGEMENT ASIA LTD SAYS HE RECENTLY REFUSED A BID TO BUY SOME OF HIS SHARES OF DAEWOO CORP AT 50 ABOVE THEIR MARKET PRICE EVEN THAT STRATEGY HAS ITS LIMITS THOUGH FOREIGN BROKERAGES' RESEARCH STAFFS ARE OFTEN TOO SMALL AND TOO NEW IN KOREA TO KNOW MUCH ABOUT THE COUNTRY'S SMALLER COMPANIES AND IN A COUNTRY WHERE DEBT IS THE TRADITIONAL FORM OF FINANCING THE SMALLCAPITALIZATION SECTOR CAN BE A MINE FIELD OF COMPANIES IN DIRE STRAITS TOKYO STOCK PRICES FINISHED LITTLE CHANGED FRIDAY AFTER SURRENDERING STRONG GAINS RUNG UP EARLY IN THE SESSION BEFORE THE RELEASE OF A DISAPPOINTING BUSINESSSENTIMENT SURVEY BY THE JAPANESE CENTRAL BANK LONDON SHARES ROSE SLIGHTLY BOOSTED BY A POSITIVE REPORT ON US INFLATION WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10801 UP 040 REFLECTING INCREASES IN MARKETS IN THE ASIA/PACIFIC REGION THE AMERICAS AND EUROPE HEALTHCARE STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10442 UP 512 OR 52 WITH GALEN HEALTH CARE OF THE US POSTING A 35 GAIN IN ITS LOCAL CURRENCY OILFIELD EQUIPMENT STOCKS TRAILED AT 11687 DOWN 490 OR 4 WITH HALLIBURTON OF THE US SLIDING 62 IN LOCAL CURRENCY ON MONDAY IN TOKYO THE NIKKEI INDEX FELL 5240 POINTS TO CLOSE THE MORNING SESSION AT 2044855 FRIDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 650 MILLION SHARES UP FROM A THIN 2774 MILLION SHARES A DAY EARLIER BUT MORE THAN HALF OF FRIDAY'S TURNOVER CAME IN THE OPENING HOUR IN TECHNICALLY DRIVEN DEALINGS TIED TO THE SETTLEMENT OF QUARTERLY INDEX FUTURES AND MONTHLY INDEX OPTIONS ADVANCING ISSUES OUTNUMBERED RETREATING ISSUES 580409 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EASED 277 POINTS THURSDAY GAINED 878 TO 166104 THE TANKAN REPORT BY THE BANK OF JAPAN SHOWED THAT CORPORATE CONFIDENCE IN MAY REMAINED UNCHANGED FROM FEBRUARY AT A RECORD LOW IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADDED 18 POINTS TO 28618 THE FT 30STOCK INDEX ROSE 55 POINTS TO 22440 VOLUME WAS 5288 MILLION SHARES COMPARED WITH 6203 MILLION SHARES A DAY EARLIER PRICES OPENED LOWER UNTIL THE US PRODUCER PRICE INDEX FOR MAY WHICH SHOWED INFLATION WAS UNCHANGED AFTER A 6 RISE IN APRIL PROMPTED INVESTORS TO BUY FOLLOWING WALL STREET'S LEAD IN FRANKFURT STOCKS CONTINUED THEIR CLIMB FOLLOWING A THURSDAY HOLIDAY IN GERMANY THE DAX 30STOCK INDEX GAINED 791 POINTS TO 168098 MAKING THE ADVANCE FOR THE WEEK 4313 POINTS OR 26 PARIS PRICES ROSE ON THE US INFLATION DATA WHICH ALSO PULLED FRENCH STOCKS OUT OF AN EARLY SLUMP TAIPEI EQUITIES FELL FOR A SIXTH SESSION IN A ROW ATTRIBUTED TO UNCERTAINTY ABOUT TAIWAN'S ECONOMIC PROSPECTS HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9306140055 930614 BUSINESS BRIEF AMERICAN ELECTRIC POWER CO UTILITY HOLDING FIRM TO CUT JOBS AS PART OF RESTRUCTURING AMERICAN ELECTRIC POWER CO SAID IT WILL CUT AS MANY AS 750 POSITIONS AND AS MUCH AS 40 MILLION IN ANNUAL COSTS AS PART OF A RESTRUCTURING THAT WILL COMBINE ITS COLUMBUS SOUTHERN POWER AND OHIO POWER UNITS THE COLUMBUS OHIO UTILITY HOLDING COMPANY SAID THE CHANGES ARE PART OF A REORGANIZATION THAT BEGAN IN NOVEMBER AND WILL END IN 1994 AEP SAID THERE WOULD BE SOME COSTS ASSOCIATED WITH THE CUTS WHICH WILL BE INVOLUNTARY BUT IT HASN'T DETERMINED THE SIZE OR TIMING OF THEM OUR INDUSTRY IS CHANGING DRAMATICALLY THE COMPANY SAID IN A STATEMENT ADDING WE TOO NEED TO CHANGE IN ORDER TO COMPETE SUCCESSFULLY AEP HAS 20800 EMPLOYEES ABOUT 25 OF THE POSITIONS CUT WILL BE THOSE OF CONTRACT WORKERS 9306140054 930614 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AAMES FINANCIAL CORP 22 MILLION SHARES 14 MILLION OFFERED BY THE COMPANY VIA PRUDENTIAL SECURITIES INC AMERICAN MUNI INCOME PORTFOLIO INITIAL FOUR MILLION SHARES VIA PIPER JAFFRAY INC ANN TAYLOR INC 100 MILLION OF SUBORDINATED NOTES DUE 2000 VIA MERRILL LYNCH & CO BRIDAS ENERGY CORP INITIAL 75 MILLION SHARES VIA BEAR STEARNS AND SMITH BARNEY HARRIS UPHAM & CO COMPUWARE CORP SECONDARY OFFERING OF THREE MILLION SHARES VIA DONALDSON LUFKIN & JENRETTE SECURITIES CORP EDMARK CORP 250000 COMMON SHARES VIA PIPER JAFFRAY ELCOR CORP 15 MILLION SHARES VIA MERRILL LYNCH EMERGING MARKETS INCOME FUND II INITIAL 27 MILLION SHARES VIA OPPENHEIMER & CO INC FLIR SYSTEMS INC INITIAL 23 MILLION COMMON SHARES VIA HAMBRECHT & QUIST INC INTERNATIONAL IMAGING MATERIAL INC INITIAL THREE MILLION SHARES TWO MILLION OFFERED BY THE COMPANY VIA SMITH BARNEY HARRIS UPHAM JUST TOYS INC 14 MILLION SHARES 11 MILLION OFFERED BY THE COMPANY VIA KIDDER PEABODY & CO KEMET CORP 33 MILLION SHARES VIA MERRILL LYNCH LIBBEY INC INITIAL 15 MILLION SHARES 12 MILLION IN THE US VIA BEAR STEARNS & CO MERCHANTS GROUP INC 19 MILLION SHARES 950000 OFFERED BY THE COMPANY VIA PRUDENTIAL MINNESOTA MUNI INCOME PORTFOLIO INC INITIAL 25 MILLION SHARES VIA PIPER JAFFRAY MMI COS INITIAL THREE MILLION SHARES 19 MILLION OFFERED BY THE COMPANY VIA SMITH BARNEY HARRIS UPHAM MS CARRIERS INC 25 MILLION SHARES TWO MILLION OFFERED BY THE COMPANY VIA ALEX BROWN & SONS INC NUVEEN CA FL NY PREMIUM INCOME MUNI FUND EACH AN INITIAL 100000 SHARES VIA PRUDENTIAL NUVEEN NJ PA PREMIUM INCOME MUNI FUND 3 EACH AN INITIAL 100000 SHARES VIA PRUDENTIAL PUTNAM MANAGED HIGH YIELD TRUST INITIAL FOUR MILLION SHARES OF BENEFICIAL INTEREST VIA PAINEWEBBER INC RHODES INC INITIAL 39 MILLION SHARES VIA SALOMON BROTHERS INC ROWAN COS 10 MILLION SHARES EIGHT MILLION IN THE US VIA LEHMAN BROTHERS SKYWEST INC SECONDARY 19 MILLION SHARES VIA ROBINSONHUMPHREY CO INC THORNBURGH MORTGAGE ASSET CORP INITIAL 10 MILLION SHARES VIA MONTGOMERY SECURITES TIDEWATER INC 125 MILLION SHARES 10 MILLION IN THE US/CANADA VIA SALOMON BROTHERS TOM BROWN INC 52 MILLION SHARES THREE MILLION BY THE COMPANY VIA SALOMON BROTHERS TRUMP PLAZA FUNDING INC 315 MILLION OF FIRST MORTGAGE NOTES DUE 2001 TRUMP PLAZA HOLDING ASSOCIATES 60 MILLION OF PAYINKIND NOTES DUE 2003 VIA MERRILL LYNCH & CO US HOME CORP 200 MILLION OF SENIOR NOTES DUE 2003 VIA DILLON READ & CO WESTCORP 45 MILLION SHARES VIA MONTGOMERY SECURITIES WESTERN FINANCIAL SAVINGS BANK 100 MILLION OF SUBORDINATED CAPITAL DEBENTURES DUE 2003 VIA DONALDSON LUFKIN & JENRETTE LOS ANGELES 2256 MILLION OF VARIOUS REFUNDING AND REVENUE BONDS VIA COMPETITIVE BID OHIO PUBLIC FACILITIES COMMISSION 2058 MILLION OF SERIES II1993A HIGHER EDUCATION CAPITAL FACILITIES REVENUE BONDS VIA COMPETITIVE BID SAN FRANCISCO CITY & COUNTY 325 MILLION OF 199394 TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID CALIFORNIA 20 BILLION OF 1993 REVENUE ANTICIPATION WARRANTS VIA COMPETITIVE BID GEORGIA APPROXIMATELY 304 MILLION OF VARIOUS GENERAL OBLIGATION BONDS VIA COMPETITIVE BID HOUSTON TEXAS 100 MILLION OF SERIES 1993 TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID SACRAMENTO COUNTY CALIF 285 MILLION OF 1993 TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID MASSACHUSETTS BAY TRANSPORTATION AUTHORITY 475 MILLION OF GENERAL TRANSPORTATION SYSTEM REVENUE BONDS VIA A GOLDMAN SACHS & CO GROUP SOUTHERN CALIFORNIA POWER AUTHORITY 237 MILLION OF BONDS FOR THE SAN JUAN PROJECT VIA A FIRST BOSTON CORP GROUP WEST VIRGINIA SCHOOL BUILDING AUTHORITY 338 MILLION OF CAPITALIMPROVEMENT REVENUE BONDS AND REFUNDING BONDS VIA A DONALDSON LUFKIN & JENRETTE GROUP 9306140053 930614 BUSINESS BRIEF NIPPON STEEL CORP PRETAX PROFITS PLUNGE 71 FOR JAPAN'S TOP STEELMAKER NIPPON STEEL CORP JAPAN'S LARGEST STEELMAKER REPORTED FRIDAY THAT ITS CONSOLIDATED PRETAX PROFIT PLUNGED 71 OR 7227 BILLION YEN 6809 MILLION IN THE FISCAL YEAR ENDED MARCH 1993 CRUNCHED BY THE WEAK DEMAND FROM JAPAN'S INDUSTRIAL AND CONSTRUCTION SECTORS GROUP NET PROFIT WAS REPORTED AT 182 BILLION YEN DOWN 98 FROM 7842 BILLION FOR THE PREVIOUS YEAR EARNINGS PER SHARE PLUNGED 98 TO 026 YEN FROM 1138 YEN SALES FELL 86 OR 2951 TRILLION YEN TO 323 TRILLION YEN ON MAY 28 TOKYOBASED NIPPON STEEL SAID ON AN UNCONSOLIDATED OR PARENTCOMPANY ONLY BASIS ITS PRETAX PROFIT WOULD DROP 31 DURING THE CURRENT YEAR WHILE SALES WERE LIKELY TO EDGE DOWN 08 PRETAX PROFIT REPRESENTS OPERATING AND NONOPERATING PROFIT INCLUDING FINANCIAL INCOME AND EXPENSES NET PROFIT REPRESENTS PRETAX PROFIT PLUS EXTRAORDINARY GAINS OR LOSSES AND TAX PAYMENTS OPERATING PROFIT ON MAIN BUSINESS ACTIVITIES DROPPED 41 TO 11596 BILLION YEN DURING THE LATEST FISCAL YEAR THE 98 PLUNGE IN GROUP NET PROFIT WAS PARTLY A RESULT OF A PLUNGE IN EXTRAORDINARY PROFITS TO 272 BILLION YEN FROM 5332 BILLION YEN THE PRIOR YEAR WHEN THE COMPANY SOLD 41 BILLION YEN OF FIXED ASSETS 9306140052 930614 FRENCH INFLATION DATA PARIS FRENCH INFLATION IN MAY WAS 12 POINTS BELOW THE AVERAGE OF ITS NINE MAIN TRADING PARTNERS ON A YEARONYEAR BASIS THE ECONOMICS MINISTRY POINTED OUT FRIDAY AFTERNOON BUT FROM APRIL TO MAY PRICES FOR THE NINE PARTNERS ROSE ONLY 02 ON AVERAGE AS DID FRANCE'S IN A COMMUNIQUE THAT FOLLOWED THE EARLY MORNING RELEASE OF MAY INFLATION DATA WHICH SHOWED THAT CONSUMER PRICES ROSE A SCANT 02 ON THE MONTH AND 2 ON THE YEAR THE ECONOMICS MINISTRY SAID THAT MAY INFLATION FOR THE NINE PARTNERS GERMANY ITALY UK BELGIUM HOLLAND SPAIN SWITZERLAND THE US AND JAPAN AVERAGED 32 GERMANY HAD AN INFLATION RATE IN MAY OF 42 YEARONYEAR WHILE JAPAN'S WAS 09 9306140051 930614 WEINGARTEN REALTY INVESTORS HOUSTON WEINGARTEN REALTY INVESTORS SAID IT WILL REDEEM ON OCT 1 ITS 25 MILLION OF 98 CONVERTIBLE SENIOR NOTES DUE APRIL 1 1999 FOR COMMON STOCK UNTIL SEPT 30 THE NOTES CAN BE CONVERTED INTO STOCK AT A CONVERSION PRICE OF 3450 A COMMON SHARE WHICH WOULD RESULT IN THE ISSUANCE OF 724367 COMMON SHARES FOR NOTES REDEEMED OCT 1 THE NUMBER OF SHARES ISSUED WILL BE DETERMINED BY DIVIDING 107 OF THE PRINCIPAL AMOUNT OF NOTES PLUS ACCRUED INTEREST BY THE AVERAGE CLOSING PRICE FOR COMMON STOCK FOR THE FIVE TRADING DAYS ENDING SEPT 28 WEINGARTEN CLOSED UP 125 CENTS AT 40625 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FRIDAY 9306140050 930614 LETTERS TO THE EDITOR LAST SOAP POWDER GOES DOWN THE DRAIN IN REGARD TO YOUR MAY 10 PAGE ONE ARTICLE ON PROCTER & GAMBLE I WONDERED WHICH IDIOT IT WAS WHO ORDERED THE DISCONTINUANCE OF THE LAST SOAP POWDER ON THE MARKETIVORY SNOW THIS IS WORSE THAN THE COCACOLA CLASSIC DEBACLE AND THE REALLY SNEAKY THING BEING DONE IS THE REPLACEMENT OF THE PRODUCT WITH A DETERGENT OF THE SAME NAME SOAP RINSES THOROUGHLY FROM CLOTHES NOT LEAVING A RESIDUE THAT IRRITATES SKIN AND WEAKENS FABRICS AS DETERGENTS DO SOAP IS MUCH BETTER FOR WASHING DISHES TOO ONE OF THE BEST THINGS ABOUT SOAP IS THE FACT IT IS NATURALLY BIODEGRADABLE THE USE OF SOAP WILL KEEP A SEPTIC TANK CLEAN FOR A VERY LONG TIME A PLUMBER WITH MANY YEARS EXPERIENCE TOLD ME THIS 40 YEARS AGO THERE ARE MILLIONS OF SEPTIC INSTALLATIONS COUNTRYWIDE IF IVORY SNOW WAS NOT SELLING WHY DIDN'T SOMEBODY AT PROCTER & GAMBLE HAVE BRAINS ENOUGH TO ADVERTISE THE SOAP'S SUPERIOR QUALITIES IN A WAY THAT WOULD INCREASE THE MARKET ALL YOU COMPETITORS OUT THERE GRAB THIS ONE I'LL BE THE FIRST TO BUY ANY GOOD SOAP POWDER YOU MAKE 9306140049 930614 GLOBAL VIEW SELL IL DUCE'S PATRIMONY AND SAVE ITALY BY GEORGE MELLOAN NAPLES ITALY ON THE AUTOSTRADA APPROACHING THIS CITY A BURLY TOLL TAKER SAYS CINQUE MILLE I DEMAND THAT HE LIGHT UP THE TOLL SIGN HE SHRUGS AND PRESSES A BUTTON THE ACTUAL TOLL IS 1100 LIRE 75 CENTS NOT THE 5000 335 HE DEMANDED HE TAKES MY MONEY AS IF NOTHING UNUSUAL HAD HAPPENED AND INDEED NOTHING UNUSUAL HAS HAPPENED ITALIANS HAVE FOR YEARS LIVED WITH A HIGH PROBABILITY THAT IN ANY TRANSACTION AN ATTEMPT WILL BE MADE TO CHEAT CAVEAT EMPTOR HAS ITS MOST URGENT MEANING IN THE LAND WHERE SOME ANCIENT ROMAN FIRST URGED THE BUYER TO BEWARE WHAT ITALIANS HAVE BEEN DISCOVERING HOWEVER IS THE EXTENT TO WHICH THE BIGGEST CHEATER OF ALL GOVERNMENT HAS BEEN ROBBING THEM EVERY DAY IT SEEMS SOME NEW SCANDAL INVOLVING POLITICAL KICKBACKS ON PUBLIC CONTRACTS HITS THE HEADLINES POLITICAL GRAFT HAS BEEN SUCKING SOME 41 BILLION A YEAR OUT OF THE ITALIAN ECONOMY OVER THE LAST DECADE ACCORDING TO TURIN'S LUIGI EINAUDI INSTITUTE BUT THAT IS ONLY A PART OF ITALY'S PROBLEM WITH GOVERNMENT HEAVILY TAXED ITALIANS ARE VICTIMS OF A POLITICAL SYSTEM THAT DEMANDS NOTHING OF A VAST ARMY OF PUBLIC SERVANTS NUMBERING SOME 35 MILLION OTHER THAN THAT THEY VOTE FOR THE PARTY THAT GOT THEM THEIR JOBS OFTEN THE RESULT PARTICULARLY IN THE CRIMERIDDEN SOUTH IS SHODDY PUBLIC SERVICES UNSANITARY HOSPITALS ILLMANAGED SCHOOLS NONEXISTENT POLICE PROTECTION AND A LIST OF OTHER AFFRONTS TO THE QUALITY OF DAILY LIFE SOME ITALIANS SEE A RESEMBLANCE TO RUSSIA ALTHOUGH SPARED FROM COMMUNISM ITALIANS HAVE SUFFERED THE NEXT WORST THING THE LONGLASTING LEGACY OF MUSSOLINI'S FASCISM WHICH WAS STATISM AS WELL BIG STATE HOLDING COMPANIES HAVE TO THIS DAY HAD AN IRON GRIP ON MAJOR INDUSTRIES SUCH AS ENERGY TRANSPORTATION BANKING AND TELECOMMUNICATIONS RUSSIANS ARE TRYING TO REFORM A STATE THAT CONTROLLED NEARLY 100 OF THE ECONOMY IN ITALY THE STATE CONTROLS SOME 57 AND IT WOULD RESEMBLE RUSSIA MORE THAN IT DOES WERE IT NOT FOR THE FACT THAT THE 43 THE GOVERNMENT DOES NOT CONTROL IS HIGHLY PRODUCTIVE THANKS LARGELY TO AN INDUSTRIOUS AND CREATIVE PRIVATE WORK FORCE AND A UNIQUE BRAND OF FAMILY ENTREPRENEURSHIP DESPITE ITS HUGE CORRUPT PUBLIC SECTOR ITALY HAS MANAGED TO GROW AND IN SOME REGIONS EVEN PROSPER BUT ITALY'S SUCCESS HAS MADE REFORM MORE NOT LESS DIFFICULT RUSSIAN STATISM SIMPLY COLLAPSED OF ITS OWN ENORMOUS WEIGHT OPENING UP AN IMPERATIVE FOR THE CREATION OF A NEW SYSTEM IN ITALY THERE HAS NOT BEEN A TOTAL COLLAPSE BUT STILL THINGS ARE HAPPENING UNDER PRESSURE FROM THE EUROPEAN COMMISSION ITALY HAS SHUT OFF SUBSIDIES TO ITS LARGEST STATE HOLDING COMPANY IRI AND TO THE ENERGY AND CONSTRUCTION HOLDING COMPANY ENI WITHOUT SUBSIDIES THEY ARE BEING FORCED TO SELL OFF SOME OF THE MORE MARKETABLE OF THEIR PROPERTIES ITALY IS BEING FORCED TO PRIVATIZE NOT BY CHOICE BUT BY NECESSITY AT THE SAME TIME THE PUBLIC SECTOR IS UNDER SEVERE POLITICAL ATTACK THE ITALIAN JUDICIARY WHICH COMBINES BOTH PROSECUTORIAL AND JUDICIAL FUNCTIONS AND ENJOYS A GREAT DEAL OF INDEPENDENCE WHEN ITS MEMBERS CARE TO EXERCISE IT IS CONDUCTING A MASSIVE ASSAULT ON POLITICAL CORRUPTION OVER 1000 PUBLIC FIGURES HAVE BEEN NOTIFIED THAT THEY ARE UNDER INVESTIGATION WHICH MEANS THAT THE PROSECUTORS HAVE ENOUGH EVIDENCE TO BRING THEM TO TRIAL NEW ANNOUNCEMENTS COME OUT EVERY DAY AND ITALIANS EXCEPT FOR THOSE FEELING THE HEAT ARE CHEERING THE MAGISTRATES FORWARD LAST WEEK GIULIO ANDREOTTI WHO HAS HEADED SEVEN GOVERNMENTS DURING HIS LONG POLITICAL CAREER WAS HIT BY THE MOST SEVERE CHARGE YET WHEN A ROME MAGISTRATE FORMALLY ANNOUNCED THAT THE 74YEAROLD POLITICIAN WAS UNDER INVESTIGATION FOR INVOLVEMENT IN THE 1979 KILLING OF A JOURNALIST AND ALLEGED BLACKMAILER NAMED MINO PECORELLI MANY ITALIANS THINK MR ANDREOTTI IS INNOCENT OF THE MOST SERIOUS CHARGES BEING LEVELED AGAINST HIM AND IS BEING SACRIFICED TO THE PUBLIC ANGER WITH THE COMPLICITY OF THE TOTAL POLITICAL ESTABLISHMENT BUT WHETHER THIS IS SO OR NOT THERE CAN BE LITTLE DOUBT THAT IMMENSE ANGER EXISTS IN APRIL MORE THAN EIGHT OUT OF 10 VOTERS IN A REFERENDUM DEMANDED A CHANGE IN THE ELECTORAL SYSTEM TO RESTORE VOTER CONTROL OVER SEATS IN PARLIAMENT AT A SIMILAR LEVEL OF INTENSITY THEY VOTED TO WIPE OUT THE PATRONAGERIDDEN TOURISM AND AGRICULTURE MINISTRIES AND TO ELIMINATE SUBSIDIES TO POLITICAL PARTIES A NEW REFORM GOVERNMENT UNDER THE LEADERSHIP OF FORMER CENTRAL BANKER CARLO CIAMPI WAS MEANWHILE TRYING TO COME UP WITH A BUDGET FOR NEXT YEAR THAT WOULD CURB THE GROWTH IN ITALY'S VAST PUBLIC DEBT WHICH AMOUNTS TO OVER 105 OF GROSS DOMESTIC PRODUCT GDP IN AN INTERVIEW LUIGI SPAVENTA FINANCE MINISTER IN THIS GOVERNMENT DOMINATED BY NONPOLITICIANS SAID THAT EVEN WITH NEW REVENUE MEASURES AND SOME PAINFUL SPENDING CUTS THERE IS NO HOPE OF MEETING THE PREVIOUS TARGET OF STOPPING THE DEBT EXPANSION BY 1995 IF YOU EXCLUDE INTEREST COSTS THE GOVERNMENT IS RUNNING A SURPLUS BUT THAT'S LIKE A HOMEOWNER SAYING HE WOULD BE IN A GREAT SHAPE IF HE DIDN'T HAVE HUGE MORTGAGE PAYMENTS TO MEET EACH MONTH THE CIAMPI GOVERNMENT WAS PRESIDENT OSCAR LUIGI SCALFARO'S RESPONSE TO PUBLIC OUTRAGE WITH THE POLITICIANS WHO HAVE HAD AN IRON GRIP ON THEIR SEATS IN PARLIAMENT AND WHO HAVE FORMED REVOLVING DOOR GOVERNMENTS THROUGHOUT THE POSTWAR ERA MR SPAVENTA FACES A HARD TASK SOMETHING HAS TO BE DONE ABOUT PENSIONS HEALTH EXPENDITURE HAS TO BE BROUGHT UNDER CONTROL WE MUST THINK ABOUT WHAT WE DO WITH OUR DEFENSE EXPENDITURE THIS YEARLY NIGHTMARE OF HAVING TO INVENT SOMETHING TO MAKE BOTH ENDS MEET IS NOT PRACTICAL BUT TO CHANGE IT YOU HAVE TO HAVE A GOVERNMENT THAT CAN STAY IN POWER THREE YEARS SOME OF ITALY'S MOST ASTUTE THINKERS SAY THAT IT IS AN ILLUSION TO BELIEVE THAT THE NEW ELECTORAL LAW WILL SOLVE THE PROBLEM SAYS ONE WE HAVE A SITUATION IN WHICH THIS PARLIAMENT DOES NOT REPRESENT ANYONE THEY LOATHE THIS GOVERNMENT IF THEY COULD BASH IT THEY WOULD BUT THEY KNOW THAT IF THIS GOVERNMENT COLLAPSES THEY ARE GOING TO HAVE AN ELECTION AND IF THEY DO ANYWHERE FROM ONE HALF TO TWO THIRDS OF THE MEMBERS OF PARLIAMENT WON'T BE BACK SOME WILL END UP IN JAIL THE NET RESULT IS THAT THEY JUST SIMPLY DO NOTHING BUT HOW CAN YOU RUN A GOVERNMENT WITHOUT A PARLIAMENT IF NOT IN THE ELECTORAL LAW IN WHAT DOES ITALY'S SALVATION LIE ANTONIO MARTINO A PROMINENT ECONOMIST AND SOMETIME CONTRIBUTOR TO THESE PAGES SAYS THE ANSWER LIES IN A SMALLER PUBLIC SECTOR WHICH WILL SIMPLY REDUCE THE OPPORTUNITIES FOR GRAFT THAT MAY TAKE SOME TIME IN THE DOING BUT THE FORCED SALE OF STATE HOLDINGS HAS AT LEAST BEGUN THE PROCESS THERE IS AN IMPORTANT LESSON TO BE LEARNED FROM ITALY'S CURRENT CIRCUMSTANCES A STATE THAT CAN NO LONGER SUSTAIN ITSELF HAS LITTLE CHOICE BUT TO GO ON A DIET BUT A BETTER APPROACH IS TO NOT LET THE STATE GET FAT FIRST OF ALL 9306140048 930614 BUSINESS BRIEF PRIMERICA CORP EQUITY FINANCING COMPLETED FOR PENDING ACQUISITION PRIMERICA CORP SAID IT COMPLETED THE EQUITY FINANCING REQUIRED FOR ITS PENDING ACQUISITION OF THE DOMESTIC RETAIL BROKERAGE AND ASSET MANAGEMENT BUSINESS OF SHEARSON LEHMAN BROTHERS INC AS PART OF ITS FINANCING PRIMERICA A NEW YORK FINANCIAL SERVICES COMPANY ISSUED 300 MILLION OF COMMON STOCK IN APRIL AND REDEEMED ITS 55 CONVERTIBLE DEBENTURES WHICH WILL RESULT IN THE ISSUANCE OF ABOUT 100 MILLION IN COMMON EQUITY PRIMERICA ALSO ANNOUNCED THE ISSUANCE OVER THE NEXT SEVEN MONTHS OF ABOUT 200 MILLION OF COMMON STOCK TO EMPLOYEES IN CONNECTION WITH THE COMPANY'S REGULAR STOCKBASED COMPENSATION PLAN PRIMERICA HAS RAISED 450 MILLION THROUGH A PRIVATE PLACEMENT OF NOTES AND A PUBLIC OFFERING OF DEBENTURES PRIMERICA'S BROKERAGE UNIT SMITH BARNEY HARRIS UPHAM & CO HAS LAUNCHED A 500 MILLION COMMERCIAL PAPER PROGRAM COMPLETED A PLACEMENT OF 300 MILLION OF NOTES AND RECEIVED FIRM COMMITMENTS FOR A NEW 13 BILLION REVOLVING BANK CREDIT FACILITY THE STEPS WILL HELP FUND THE WORKING CAPITAL NEEDS OF THE MERGED COMPANY 9306140047 930614 INTERNATIONAL SPAIN'S ECONOMY SHRINKS 05 MADRID SPAIN'S ECONOMY SHRANK 05 IN THE FIRST QUARTER OF 1993 FROM A YEAR EARLIER THE BANK OF SPAIN SAID FRIDAY REAL DOMESTIC DEMAND FELL 15 IN THE FIRST QUARTER FROM A YEAR EARLIER THE CENTRAL BANK SAID IN A REPORT HOWEVER THE SHARP RISE IN FIRST QUARTER EXPORT EARNINGS HELPED LIMIT THE DROP IN SPAIN'S GROSS DOMESTIC PRODUCT TO 05 THE BANK OF SPAIN ADDED THE CENTRAL BANK NOTED THAT THE RECESSION HAD DEEPENED SINCE THE FOURTH QUARTER OF 1992 WHEN THE SPANISH ECONOMY CONTRACTED 02 ACCORDING TO PROVISIONAL DATA PROVIDED BY THE FINANCE MINISTRY'S NATIONAL STATISTICS INSTITUTE THE CENTRAL BANK SAID THE ECONOMIC SLOWDOWN THROUGHOUT EUROPE WAS AFFECTING SPAIN 9306140046 930614 TECHNOLOGY INFORMATION AGE MARKETERS MINE THEIR CORPORATE DATABASES BY WILLIAM M BULKELEY CINDY LAY USED HER PERSONAL COMPUTER TO FIND 1400 SOUTHERN WOMEN WHO BUY ANNE KLEIN DRESSES ONLY ON SALE SCOTT NELSON DISCOVERED SEVERAL THOUSAND MICHIGAN BANK CUSTOMERS WHO USED AUTOMATED TELLER MACHINES FOR WITHDRAWALS BUT DIDN'T KNOW HOW TO USE THEM FOR DEPOSITS THESE MARKETERS EXEMPLIFY THE INCREASED ABILITY OF MARKETING TYPES WITH LIMITED COMPUTER TRAINING TO MASSAGE CORPORATE DATABASES AT THEIR DESKTOPS AND FIND NEW WAYS TO EXTRACT MORE MONEY FROM CUSTOMERS MS LAY DIRECTOR OF MARKET RESEARCH FOR PROFFITT'S INC AN ALCOA TENN DEPARTMENT STORE CHAIN USED TO HAVE TO CAJOLE THE DATAPROCESSING DEPARTMENT FOR INFORMATION ON SHOPPERS TO TARGET IN DIRECTMAIL CAMPAIGNS BUT A YEAR AGO SHE GOT PROFFITT'S DATABASE TRANSFERRED TO A POWERFUL PC RIGHT IN HER OFFICE NOW SHE CAN SLICE DICE AND MANIPULATE THE STORE'S ENTIRE CUSTOMER RECORDS HERSELF IT HAS BEEN AN EYEOPENING EXPERIENCE SHE SAYS FOR EXAMPLE SHE CULLED BUYERS OF BETTERBRANDED LADIES APPAREL SUCH AS LIZ CLAIBORNE AND ANNE KLEIN DRESSES WHO ONLY BOUGHT ON SALE EVALUATING THEIR PAST PURCHASES SHE DISCOVERED THAT WHEN THEY WAITED UNTIL THE SECOND MARKDOWN THEY COST ME AN ADDITIONAL 75 PER PERSON SO BEFORE THE FIRST MARKDOWN PERIOD ENDED SHE SPENT 850 TO NOTIFY THE CUSTOMERS OF A SPECIAL SALE ON THE CLOTHES THEY WANTED THE TWODAY EVENT INCREASED VOLUME ON THE DRESSES BY 97 IN A NORMALLY SLOW PERIOD FOR YEARS MARKETING GURUS HAVE BEEN PREACHING THE MERITS OF MINING CORPORATE DATABASES BUT THE DATABASES USED FOR BILLINGS DEPOSIT RECORDS AND INSTALLMENTPLAN PAYMENTS USUALLY HAVE BEEN INACCESSIBLE EXCEPT TO THE PROGRAMMERS WHO MAINTAIN THEM MARKETERS DESIGNING DIRECTMAIL CAMPAIGNS HAVE HAD TO STAND IN LINE TO ASK PROGRAMMERS TO SEARCH FOR PARTICULAR TYPES OF CUSTOMERS NOW THE MARKETING EXPERTS THEMSELVES CAN GET AT THE DATA HIGHEND PCS WITH TWOGIGABYTE HARD DRIVES 20 TIMES LARGER THAN THE 100 MEGABYTE DRIVES MOST HOME USERS BUY NOW CAN HOLD SEVERAL MILLION CUSTOMER NAMES ON HARDWARE THAT COSTS ABOUT 10000 THE SOFTWARE TO MANAGE SUCH DATA STARTS AS LOW AS 15000 SOPHISTICATED PACKAGES SUCH AS HARTEHANKS COMMUNICATIONS INC'S PCIS CAN COST COMPANIES 100000 TO 1 MILLION A YEAR AS MUCH AS MAINFRAME SOFTWARE BUT IT'S EASY ENOUGH FOR NONPROGRAMMERS TO USE ANALYZING INFORMATION FIGURING OUT A MAILING CAMPAIGN AND FIGURING OUT WHO SHOULD RECEIVE THE MAILING USED TO TAKE WEEKS OR MONTHS SAYS RICHARD HOCHHAUSER PRESIDENT OF HARTEHANKS DIRECT MARKETING A BURLINGTON MASS UNIT TODAY THEY'RE DONE IN HOURS MITCHELL A ORFUSS PRESIDENT OF J WALTER THOMPSON DIRECT A DIRECTMARKETING UNIT OF WPP GROUP PLC SAYS WHEN YOU WORK THROUGH A PROGRAMMER OR A SERVICE BUREAU THE BEST YOU CAN DO IS GET A QUESTION ANSWERED IN A DAY OR SEVERAL WEEKS IT'S SO MUCH EASIER WHEN A MARKETING PERSON HAS ACCESS AND CAN LITERALLY PLAY WHAT IF' ALMOST LIKE A FINANCE GUY WITH A SPREADSHEET CUSTOMER DATABASES ARE SUCH A GOLDMINE MARKETERS SAY BECAUSE IT'S MUCH CHEAPER TO PERSUADE AN ESTABLISHED CUSTOMER TO SPEND MORE MONEY IN A STORE OR BANK THAN IT IS TO BRING IN A BRAND NEW CUSTOMER JAMES PISZ NATIONAL DIRECT RESPONSE MANAGER FOR TOYOTA MOTOR CORP'S US UNIT IN TORRANCE CALIF USES A SUN MICROSYSTEMS INC WORKSTATION TO MANIPULATE A SEVENMILLION CUSTOMER DATABASE HE CALCULATES THAT MASSMEDIA ADVERTISING IS THREETOFIVE TIMES MORE EXPENSIVE TO ATTRACT A NEW CUSTOMER THAN A REPEAT CUSTOMER THUS WHEN TOYOTA DEALERS IN SACRAMENTO CALIF PLANNED A TENT SALE THIS SPRING TOYOTA PROVIDED MAILINGS TO AREA RESIDENTS WHO HAD BOUGHT NEW TOYOTAS THREE YEARS BEFORE IN THE PAST MUCH DIRECT MAIL HAS BEEN AIMED AT ATTRACTING NEW CUSTOMERS OFTEN WITH SCANTY RESULTS BUT RISING POSTAL RATES AND THE RECESSION HAVE SLASHED THE GROWTH IN DIRECT MAIL WITH THIRDCLASS MAIL FALLING 2 IN 1991 AND RISING JUST 02 LAST YEAR THE POSTAL SERVICE SAYS TO MAKE THEIR MAILINGS MORE EFFECTIVE MARKETERS TRY TO TARGET THEM MORE ACCURATELY WE TELL PEOPLE YOU CAN MAIL 1000 LETTERS OR YOU CAN USE ONE OF THESE SYSTEMS AND MAIL 100 LETTERS AND GET THE SAME RESULTS' SAYS THOMAS ROGERS EXECUTIVE VICE PRESIDENT OKRA MARKETING CORP A TAMPA FLA PRODUCER OF SOFTWARE FOR DATABASE MARKETING STILL CREATING A MARKETING DATABASE ISN'T EASY BANKS FOR EXAMPLE GENERALLY HAVE ACCOUNT DATABASES FOR EACH PRODUCT MORTGAGES CAR LOANS SAVINGS AND CREDIT CARDS THE DATABASES MAY EVEN IDENTIFY THE SAME CUSTOMER DIFFERENTLY WITHOUT A MIDDLE INITIAL FOR EXAMPLE OR LAST NAME FIRST MARKETERS WANT ONE DATABASE THAT LISTS EVERY ACCOUNT EVERY CUSTOMER HAS MAILINGLISTSERVICE BUREAUS SUCH AS HARTEHANKS HAVE REFINED THE ART OF MERGING AND PURGING MAILING LISTS TO AVOID COSTLY DUPLICATIONS AND THEY ARE APPLYING THAT TECHNOLOGY TO COMBINING MULTIPLE DATABASES INTO A SINGLE CUSTOMER DATABASE WHEN THE DATABASES ARE COMBINED MARKETERS CAN SEE OPPORTUNITIES FOR CROSSMARKETING WE'VE IDENTIFIED KEY VARIABLES TO FIND WEALTHY PROSPECTS FOR PRIVATE BANKING SAYS RICHARD GOLDBERG VICE PRESIDENT DATABASE MARKETING FOR CHEMICAL BANK MR GOLDBERG ALSO ANALYZES CUSTOMERS USING THE PC VERSION OF CLARITAS'S PRIZM LIFESTYLECLUSTERING SOFTWARE MADE BY CLARITAS A UNIT OF VNU BUSINESS INFORMATION SERVICES INC PRIZM CAN RANK ZIP CODES OR CENSUS TRACTS AS BLUEBLOOD ESTATES OR SHOTGUNS AND PICKUPS FOR EXAMPLE SOMETIMES MR GOLDBERG FINDS A LONGTIME CUSTOMER WITH A SMALL ACCOUNT FROM AN AFFLUENT NEIGHBORHOOD THAT MEANS WE AREN'T GETTING ALL WE SHOULD OUT OF THEM HE SAYS WHEN CHEMICAL MERGED WITH MANUFACTURERS HANOVER CORP THE COMPANY WAS WORRIED ABOUT LOSING CUSTOMERS AS NEARBY BRANCHES WERE CONSOLIDATED BY ANALYZING SOME OF THE FIRST MERGED BRANCHES MR GOLDBERG DISCOVERED WAYS TO PREDICT WHICH CUSTOMERS WERE LIKELY TO LEAVE THEY TURNED OUT TO BE PEOPLE WHO ARE DOING TRANSACTIONS LESS OFTEN AND WHOSE BALANCES ARE GOING DOWN NOW WHEN BRANCHES COMBINE HE CHECKS FOR SUCH CUSTOMERS AND CREATES A LIST OF PEOPLE LIKELY TO LEAVE THEY START GETTING MORE LETTERS OR OFFERS OF SPECIAL PROGRAMS EVEN AS THEY REVEL IN THEIR ABILITY TO GET MORE INFORMATION MARKETERS ARE CAUTIOUS ABOUT BOASTING TOO LOUDLY BECAUSE THEY KNOW IT MAY MAKE CUSTOMERS QUEASY DAVID HARRIS A MARKETING CONSULTANT IN WELLESLEY MASS URGES CLIENTS TO COLLECT INFORMATION FAST THE MORE YOU KNOW ABOUT YOUR CUSTOMERS TODAY THE BETTER OFF YOU'LL BE WHEN PRIVACY LAWS BAN SOME ACTIVITIES HE SAYS WHEN SCOTT NELSON A DATABASE MARKETING SPECIALIST AT OLD KENT FINANCIAL CORP GRAND RAPIDS MICH IDENTIFIED ATM CUSTOMERS WHO DIDN'T MAKE DEPOSITS CONTRIBUTING TO BANK CONGESTION ON PAYDAYS HE WROTE A LETTER THAT APPEARED TO BE GOING TO ALL BANK CUSTOMERS WE SAW IT AS A SERVICE TO THEM THEY WERE PROBABLY EMBARRASSED TO ADMIT THEY DIDN'T KNOW HOW TO MAKE DEPOSITS HE SAYS CHECKING UP AFTERWARD HE FOUND 60 OF THEM DID START DEPOSITING VIA MACHINE BUT HE PROMISES THAT ONE GROUP WON'T GET THE MAILINGS SHAREHOLDERS THEY TEND TO COMPLAIN IT'S JUST A WASTE OF MONEY 9306140045 930614 SOME KUWAITI BANKS' ASSETS FALL MANAMA BAHRAIN THE TOTAL ASSETS OF KUWAIT'S LOCAL BANKS FELL 10 IN FEBRUARY FROM JANUARY AND WERE 23 LOWER THAN A YEAR EARLIER DATA FROM THE KUWAIT CENTRAL BANK SHOWED ACCORDING TO THE AUTHORITY'S MONTHLY MONETARY REVIEW THE NINE LOCAL BANKS HAD ASSETS OF 893 BILLION KUWAIT DINARS 2972 BILLION IN FEBRUARY DOWN FROM 902 BILLION DINARS IN JANUARY AND 914 BILLION DINARS IN FEBRUARY 1992 COMPARED WITH PREPERSIAN GULF CRISIS LEVELS ASSETS HAVE FALLEN SHARPLY THE CENTRAL BANK REPORTED IN JULY 1990 JUST AHEAD OF THE AUGUST INVASION OF KUWAIT BY IRAQ THAT TOTAL ASSETS OF LOCAL BANK WERE 121 BILLION DINARS 9306140044 930614 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT BELL & HOWELL CO 80 MILLION OF SENIOR NOTES DUE JULY 15 2000 PRICED AT PAR TO YIELD 925 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FOUR YEARS THE ISSUE IS RATED SINGLEB1 BY MOODY'S INVESTORS SERVICE INC STANDARD & POOR'S CORP HAS NOT YET SET A RATING THE OFFERING WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP BOEING CO 300 MILLION OF NOTES DUE JUNE 15 2003 PRICED AS 635S AT 9978 TO YIELD 638 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 04 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FORD MOTOR CREDIT CO 500 MILLION OF NOTES DUE JUNE 30 2003 PRICED AS 6625S AT 991016 TO YIELD 675 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 075 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS FORD MOTOR CREDIT IS A UNIT OF FORD MOTOR CO NORTHWESTERN STEEL & WIRE CO 115 MILLION OF 95 SENIOR NOTES DUE 2001 PRICED TO YIELD 9625 ANNUALLY THE OFFERING IS CONCURRENT WITH THE COMPANY'S INITIAL PUBLIC OFFERING OF SEVEN MILLION COMMON SHARES AT 8 A SHARE THE NOTE OFFERING IS MANAGED BY LEHMAN BROTHERS AND MERRILL LYNCH & CO USLIFE CORP 150 MILLION OF NOTES DUE JUNE 15 2000 PRICED AS 6375S AT 9964 TO YIELD 644 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE IS PRICED AT A SPREAD OF 073 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY BEAR STEARNS & CO BANCO DE GALICIA Y BUENOS AIRES SA THREE MILLION AMERICAN DEPOSITARY SHARES PRICED AT 2175 APIECE THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP EACH OF THE SHARES WILL REPRESENT FOUR CLASS B ORDINARY SHARES IN THE COMPANY FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES GOLD 1551 IS BACKED BY FREDDIE MAC GOLD 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 1475 YEARS FEDERAL HOME LOAN MORTGAGE CORP 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES G015 IS BACKED BY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 75 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 2992 YEARS FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY BEAR STEARNS & CO THE OFFERING SERIES 1550 IS BACKED BY THE AGENCY'S 15YEAR 6 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 6625 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 148 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 600 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY MERRILL LYNCH & CO THE OFFERING SERIES TRUST 1993118 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 148 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 5001 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY GOLDMAN SACHS & CO THE OFFERING SERIES 1993121 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 765 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 500 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY SALOMON BROTHERS INC THE OFFERING SERIES 1993120 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS FEDERAL NATIONAL MORTGAGE ASSOCIATION 350 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1993119 IS BACKED BY THE AGENCY'S 30YEAR 75 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 805 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 294 YEARS FIRST BOSTON MORTGAGE SECURITIES CORP 115 MILLION OF MULTIFAMILY MORTGAGEBACKED SECURITIES PRICED IN THREE PARTS THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP ACCORDING TO MCM CORPORATEWATCH ALL CLASSES ARE INDEXED OFF THE ONEMONTH LONDON INTERBANK OFFERED RATE AND HAVE A FIVEYEAR EXPECTED MATURITY THE 819 MILLION IN CLASS A CERTIFICATES ARE PRICED WITH AN INITIAL COUPON OF 409 AT 100875 THE CERTIFICATES ARE RATED TRIPLEA BY BOTH S&P AND FITCH INVESTORS SERVICE THE 231 MILLION IN CLASS B CERTIFICATES ARE PRICED WITH AN INITIAL COUPON OF 435 AT 1004375 THE CERTIFICATES ARE RATED DOUBLEA BY BOTH S&P AND FITCH THE 10 MILLION IN CLASS C CERTIFICATES ARE PRICED WITH AN INITIAL COUPON OF 485 AT PAR THE CERTIFICATES ARE RATED SINGLEA BY S&P AND DOUBLEAMINUS BY FITCH FIRST BOSTON MORTGAGE SECURITIES IS A UNIT OF CS FIRST BOSTON GROUP INC FRANCE TELECOM SA FRANCE TWO BILLION FRENCH FRANCS OF 65 EUROBONDS DUE JULY 19 1999 REOFFERED AT 9856 VIA BNP CAPITAL MARKETS YIELD AT REOFFER PRICE 659 MARGIN 20 BASIS POINTS ABOVE COMPARABLE FRENCH GOVERNMENT NOTE FEES 0275 POINT DEUTSCHE SIEDLUNGS UND LANDESRENTENBANK GERMANY 100 MILLION MARKS OF REVERSECOUPON FLOATINGRATE EURONOTES DUE JUNE 23 2000 VIA MORGAN STANLEY GMBH INTEREST FOR FIRST TWO YEARS 7 ANNUAL THEN AT 13 MINUS PREVAILING SIXMONTH LONDON INTERBANK OFFERED RATE FOR MARKS FEES 225 POINTS KITANO CONSTRUCTION CORP JAPAN 150 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE JUNE 28 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 0875 COUPON AT PAR VIA UNION BANK OF SWITZERLAND EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM JULY 13 1993 TO JUNE 20 1997 TO PURCHASE COMPANY SHARES FINAL TERMS ARE FIXED JUNE 17 FEES 1625 POINTS 9306140043 930614 PUBLISHING TIMESGLOBE DEAL LOOKS GOOD ON PAPER BY PATRICK M REILLY AND GARY PUTKA STAFF REPORTERS OF THE WALL STREET JOURNAL IN AGREEING TO BUY THE BOSTON GLOBE ONE OF THE NATION'S LAST FAMILYOWNED NEWSPAPER EMPIRES NEW YORK TIMES CO HAS PAID DEARLY TO FORGE A POWERFUL PUBLISHING ALLIANCE THAT SOME ANALYSTS AND COMPETITORS SAY MAY ULTIMATELY PROVE OF QUESTIONABLE STRATEGIC VALUE AS TOP EXECUTIVES OF THE GLOBE'S OWNER AFFILIATED PUBLICATIONS INC AND THE TIMES SOUGHT TO RALLY ANALYSTS AND SHAREHOLDERS TO SUPPORT THE 11 BILLION ACQUISITION THEY SPOKE GLOWINGLY OF THE SYNERGISTIC BUSINESS POSSIBILITIES SUCH AS ADVERTISING PACKAGES AND NEW ELECTRONIC INFORMATION SERVICES THAT WOULD FLOW FROM THE UNION OF TWO PRESTIGIOUS NEWSPAPER COMPANIES BUT THE HOPEDFOR ADVANTAGES IN WHAT WOULD BE THE BIGGEST US NEWSPAPER MERGER EVER WILL RESULT IN VIRTUALLY NO COST SAVINGS TIMES EXECUTIVES CONCEDE AND WHILE THE PRESTIGE ACQUISITION WILL INCREASE THE TIMES' REVENUE AND CASH FLOW INDUSTRY OBSERVERS DOUBT THAT THE MERGER WILL ADD SIGNIFICANTLY TO NEW REVENUES EVEN IN THE LONG TERM DESPITE THE TALK ABOUT POSSIBLE HIGHTECH NEWSPAPER VENTURES COMPANY EXECUTIVES OFFERED NO CONCRETE PLANS IN ANY CASE SUCH HIGHTECH VENTURES ARE AT BEST SEVERAL YEARS AWAY WHILE THE DEAL MONTHS IN THE MAKING IS EXPECTED TO BE CLOSED AROUND OCT 1 THERE WERE SIGNS FRIDAY THAT AT LEAST ONE BIG INSTITUTIONAL HOLDER OF AFFILIATED MAY TRY TO HOLD OUT FOR A HIGHER PRICE NEWSPAPER INDUSTRY EXECUTIVES QUESTIONED BOTH THE PRICE AND THE NOTION OF SYNERGY THE PRICE ASTOUNDS ME SAYS ROBERT M JOHNSON PUBLISHER AND CHIEF EXECUTIVE OFFICER OF TIMES MIRROR CO'S NEWSDAY AND NEW YORK NEWSDAY IN LIGHT OF THE ECONOMIC RESTRUCTURING AND DOWNTURN IN THE NORTHEAST REGION HE SAYS I JUST DON'T SEE IT INVESTORS TOO WERE JITTERY AFTER THE ACQUISITION WAS OFFICIALLY ANNOUNCED ON FRIDAY TIMES CO SHARES DECLINED ALMOST 10 ANALYSTS SAID THE DROP REFLECTED THE EXPECTED DILUTION OF THE VALUE OF THE COMPANY'S EXISTING SHARES AS A RESULT OF THE PURCHASE WHICH WILL PAID FOR LARGELY IN TIMES STOCK AND THE EXPECTED ARBITRAGERELATED SELLING WHILE THE NUMBER OF NEW TIMES SHARES WILL BE DETERMINED BY THE AVERAGE CLOSING PRICE OF TIMES STOCK BEFORE THE MERGER THE COMPANY SAID IT COULD ISSUE ABOUT 34 MILLION NEW SHARES INCREASING THE NUMBER OF SHARES OUTSTANDING TO ABOUT 1138 MILLION IN HEAVY TRADING NEW YORK TIMES CLASS A SHARES CLOSED FRIDAY AT 24375 ON THE AMERICAN STOCK EXCHANGE DOWN 250 SHARES OF AFFILIATED'S CLASS A COMMON CLOSED AT 13625 UP 375 CENTS IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING SOME ANALYSTS THINK THE TIMES MAY BE FORCED TO PAY MORE UNDER AFFILIATED'S BYLAWS THE ACQUISITION REQUIRES THE APPROVAL OF TWOTHIRDS OF EACH CLASS OF COMMON STOCKHOLDERS THOSE WITH THE PUBLICLY TRADED A STOCK AS WELL AS B SHAREHOLDERS WHO ARE GLOBE FAMILY INSIDERS BUT MORE THAN 40 OF THE A SHARES ARE CONCENTRATED IN THE HANDS OF JUST FOUR INSTITUTIONAL SHAREHOLDERS WHO ARE IN AN UNUSUALLY STRONG POSITION TO TRY TO BLOCK THE TRANSACTION IF THEY DECIDE THE PRICE IS TOO LOW ONE OF THESE HOLDERS GABELLI GROUP INC HINTS THAT IT MAY TRY TO BARGAIN FOR A HIGHER PRICE GIVEN THE PROSPECTS FOR IMPROVED ADVERTISING REVENUES AT THE GLOBE WE WOULDN'T MIND BEING AN AFFILIATED SHAREHOLDER FOR THE NEXT FIVE YEARS SAYS SAL MUOIO AN ANALYST AT GABELLI WHICH OWNS ABOUT 15 OF AFFILIATED'S A STOCK CALCULATING THAT THE TIMES IS PAYING ABOUT 10 TIMES AFFILIATED'S 1994 CASH FLOW MR MUOIO SUGGESTS THAT A MULTIPLE OF 12 MIGHT BE MORE IN LINE BECAUSE THE GLOBE IS SUCH A STRATEGIC ASSET FOR THE TIMES MARIO GABELLI THE FIRM'S PRINCIPAL HASN'T DECIDED WHETHER TO VOTE FOR THE DEAL BUT SAYS HE WOULD PREFER A TRANSACTION WITH MORE CASH AND FEWER TIMES SHARES EVEN IF THE PRICE HOLDS AND THE DEAL IS COMPLETED PLUNKING DOWN 11 BILLION ON A PAPERANDINK NEWSPAPER APPEARS BOTH BOLD AND RISKY AT A TIME WHEN ELECTRONIC MULTIMEDIA ALLIANCES ARE BEING FORGED ALMOST DAILY ARTHUR OCHS SULZBERGER CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TIMES CO SAID THE GLOBE PURCHASE IS CONSISTENT WITH THE TIMES' STRATEGY OF DELIVERING INCREASED VALUE FOR OUR SHAREHOLDERS BY INVESTING IN PROFITABLE BUSINESSES OF THE TYPE WE KNOW BEST IN ADDITION HE SAID THE ALLIANCE PROMISES NEW AND EXCITING WAYS OF SELLING NATIONAL AND RETAIL ADVERTISING TO CLIENTS TARGETING THE ENTIRE NORTHEAST MARKET JOINT ADSALE PACKAGES WOULD INDEED OFFER ADVERTISERS A CONCENTRATION OF HIGHLY EDUCATED AFFLUENT READERS BUT SUCH PACKAGES WON'T NECESSARILY GUARANTEE INCREMENTAL AD DOLLARS INDUSTRY PUBLISHERS NOTE THAT RETAIL ADVERTISING IS ALMOST EXCLUSIVELY BOUGHT LOCALLY NATIONAL ADVERTISERS ALREADY ACCOUNT FOR AT LEAST 25 OF TOTAL AD LINAGE AT EACH PAPER CURRENTLY THESE ADVERTISERS PAY TOP DOLLAR FOR SPACE IN EACH PAPER PACKAGE DEALS MIGHT INCREASE VOLUME BUT WOULD ALSO LIKELY ENTAIL DISCOUNTED RATES I AM A LITTLE SKEPTICAL THAT ANY MORE ADVERTISING WOULD RUN IN EITHER PAPER BECAUSE OF THE OTHER ONE SAYS RAYMOND JANSEN PUBLISHER AND CHIEF EXECUTIVE OF THE HARTFORD COURANT P ANTHONY RIDDER PRESIDENT OF KNIGHTRIDDER INC WHICH PUBLISHES THE MIAMI HERALD AND OTHER PAPERS NOTES THAT KNIGHTRIDDER IS TRYING TO LESSEN NOT INCREASE ITS DEPENDENCE ON NEWSPAPER ADVERTISING OVER TIME OUR PRIMARY INTEREST IS GETTING INTO AREAS NOT QUITE SO CYCLICAL HE SAYS THE AGREEMENT ALLOWS THE GLOBE FULL EDITORIAL AUTONOMY AND THERE ARE NO PLANS FOR SAY COMBINING NEW YORK TIMES AND GLOBE BUREAUS TO CUT COSTS BUT LANCE R PRIMIS TIMES CO'S PRESIDENT AND CHIEF OPERATING OFFICER SUGGESTS THAT SYNERGIES COULD OCCUR IN DISTRIBUTION OF THE TIMES IN THE BOSTON AREA HE ADDS THAT THE TIMES MIGHT TRY TO REPLICATE IN NEW YORK THE GLOBE'S ALTERNATIVE DELIVERY SYSTEM WHEREBY MAGAZINES CATALOGS AND PRODUCT SAMPLES ARE TARGETED TO BOSTONAREA HOUSEHOLDS BUT STARTING SUCH A SYSTEM WOULD BE MORE DIFFICULT IN NEW YORK'S ETHNICALLY AND RACIALLY MIXED NEIGHBORHOODS BECAUSE OF LANGUAGE DIFFERENCES AND WIDER DISPARITIES IN INCOME EXECUTIVES FROM BOTH AFFILIATED AND THE TIMES WAXED ENTHUSIASTIC ABOUT THE POTENTIAL NEW BUSINESSES THAT COULD SPRING FROM POOLING THEIR ENORMOUS EDITORIAL AND CUSTOMER DATABASES AND THEY RETURNED REPEATEDLY TO THE THEME OF NEW HIGHTECH POSSIBILITIES YET AT NEWS CONFERENCES FRIDAY IN BOSTON AND NEW YORK THE TIMES' MR SULZBERGER ALSO EVINCED CAUTION ABOUT NEW TECHNOLOGIES IT'S A TREACHEROUS AREA A LOT OF PUBLISHERS HAVE VENTURED IN AND REGRETTED IT WE'RE GOING TO WATCH AND WAIT HE SAID IN BOSTON BUT HE ADDED WE'RE ALREADY FIDDLING AROUND WITH A NUMBER OF THINGS INCLUDING NEWSPAPERS ON COMPACT DISKS SOME PUBLISHERS ARGUE THAT IT IS THE CREATION OF NEW ELECTRONIC INFORMATION PRODUCTS THAT JUSTIFIES THE LARGE PURCHASE PRICE NOTING THAT NEWSPAPERS ARE STRIKING ALLIANCES WITH REGIONAL TELEPHONE COMPANIES TO PROVIDE ELECTRONIC EDITORIAL AND ADVERTISING SERVICES DAVID E EASTERLY PRESIDENT OF THE NEWSPAPER DIVISION OF COX ENTERPRISES INC SAYS THE NEW YORK TIMES MAY HAVE MADE ONE OF THE SWEETEST DEALS IN HISTORY MR EASTERLY WHOSE DIVISION PUBLISHES THE ATLANTA JOURNAL AND CONSTITUTION AND 16 OTHER NEWSPAPERS ADDS THINK OF THE GLOBE NOT AS AN INKONPAPER VEHICLE PRICED AGAINST TODAY'S MARKET BUT AS AN ENORMOUS NEW ENGLAND ASSET IN AN ELECTRONIC WORLD GIVEN HOW WE LOOK AT THE FUTURE THE TIMES MADE A GREAT DEAL THAT'S NOT TO SAY THEY KNOW WHAT TO DO WITH IT YET JOHN R WILKE CONTRIBUTED TO THIS ARTICLE 9306140041 930614 BUSINESS BRIEF PEARSON PLC BUYOUT BID BEGUN IN APRIL GARNERS 94 OF THAMES TV PEARSON PLC A UK PUBLISHING BANKING AND INDUSTRIAL GROUP SAID IT HAS RECEIVED 94 OF THAMES TELEVISION LTD'S ORDINARY SHARES IN A TENDER OFFER PEARSON LAUNCHED A 99 MILLION 1512 MILLION BID FOR THAMES TV ON APRIL 23 WITH THE SUPPORT OF THAMES AND ITS LARGEST SHAREHOLDER THORN EMI PLC PEARSON SAID THAT AS OF THE FIRST CLOSING DATE OF THE TENDER OFFER IT RECEIVED 467 MILLION THAMES SHARES PEARSON DID NOT OWN ANY THAMES TV SHARES PRIOR TO LAUNCHING THE BID THE OFFER IS BEING EXTENDED UNTIL JUNE 25 PEARSON CLOSED FRIDAY AT 466 PENCE 733 A SHARE UP THREE PENCE ON LONDON'S STOCK EXCHANGE 9306140040 930614 REVIEW & OUTLOOK EDITORIAL ASIDES PARTY LOCKSTEP THE CLINTON TAX INCREASES WON A NARROW 219 TO 213 HOUSE VOTE ONLY AFTER SEVERAL DEMOCRATIC SUBCOMMITTEE CHAIRMEN WERE TOLD THEY MIGHT LOSE THEIR POSTS IF THEY VOTED NO BUT THE HOUSE LEADERSHIP STILL WORRIES ABOUT ANOTHER REVOLT WHEN MEMBERS HAVE TO APPROVE THE HOUSESENATE COMPROMISE OF THE BILL SO NOW THEY ARE PUTTING THE SCREWS TO THE 11 SUBCOMMITTEE CHAIRMEN WHO HELD FIRM AND VOTED AGAINST THE PRESIDENT LAST WEDNESDAY DEMOCRATIC MEMBERS DEBATED A PETITION SIGNED BY A THIRD OF THEIR NUMBER THAT CALLED FOR THE DISSIDENT CHAIRMEN TO BE OUSTED WHILE NO ACTION WAS TAKEN THE CHAIRMEN WERE PUT ON NOTICE THAT THEIR HOUSE CAREERS COULD BE AT RISK IF THEY DON'T FALL IN LINE NEXT TIME THIS ISN'T ABOUT BREAKING GRIDLOCK IT'S ABOUT FORCING ELECTED REPRESENTATIVES TO MARCH IN LOCKSTEP BEHIND A FLAWED UNPOPULAR PROGRAM THAT SIMPLY HAS NO GROWTH COMPONENT 9306140038 930614 CORRECTIONS & AMPLIFICATIONS INTERNATIONAL BUSINESS MACHINES CORP'S PERSONAL COMPUTER CO 20 MILLION ACCOUNT WHICH WAS PLACED UNDER REVIEW REPRESENTED 20 OF IBM'S TOTAL BILLINGS FOR LINTAS NEW YORK THE INCUMBENT AGENCY IN THURSDAY'S ADVERTISING COLUMN IT WAS INCORRECTLY STATED THAT THE ACCOUNT REPRESENTED ABOUT 20 OF LINTAS'S TOTAL NEW YORK BILLINGS CMS ENERGY CORP OF DEARBORN MICH SAID IT IS CURRENTLY PAYING A QUARTERLY DIVIDEND THAT IS EQUIVALENT TO A YIELD OF ABOUT 3 THAT IS LOWER THAN THE UTILITY INDUSTRY'S AVERAGE WHICH RANGES FROM 4 TO 5 THE COMPANY SAID A JUNE 2 ARTICLE MISSTATED THE FIGURES AS DIVIDEND PAYOUT RATIOS 9306140037 930614 LAW LONGER HATECRIME SENTENCES EXPECTED BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MORE STATES ARE LIKELY TO PASS LAWS THAT INCREASE SENTENCES WHEN CRIMES ARE MOTIVATED BY BIGOTRY AS A RESULT OF THE SUPREME COURT'S RULING THAT SUCH STATUTES DON'T VIOLATE THE FIRST AMENDMENT THE HIGH COURT'S UNANIMOUS DECISION REMOVED A CLOUD FROM LAWS ALREADY ON THE BOOKS IN NEARLY HALF OF THE STATES THE RULING COMES AT A TIME WHEN MANY POLICE OFFICIALS AND PRIVATE EXPERTS SAY HATE CRIMES ARE ON THE RISE IN A SEPARATE DECISION FRIDAY THE HIGH COURT STRUCK DOWN LAWS PASSED BY HIALEAH FLA THAT BANNED RITUAL ANIMAL SACRIFICES BY AN AFROCARIBBEAN SECT BUT RELIGIOUSFREEDOM ADVOCATES COMPLAINED THAT THE SUPREME COURT'S REASONING WAS TOO NAR ROW AND THEY VOWED TO PUSH FOR FEDERAL LEGISLATION THAT WOULD GIVE GREATER PROTEC TION TO UNPOPULAR RELIGIOUS PRACTICES THE HATECRIME RULING INVOLVED A WISCONSIN LAW THAT PUNISHES SUCH OFFENSES AS ASSAULT AND BATTERY MORE SEVERELY IF PROSECUTORS PROVE THEY WERE INSPIRED BY RACIAL RELIGIOUS OR SEXUAL BIAS SUCH PENALTYENHANCEMENT LAWS WERE ENACTED IN MANY STATES IN THE 1980S NEARLY ALL STATES HAVE SOME SORT OF LAW COVERING HATE CRIMES LAST YEAR THE HIGH COURT STRUCK DOWN A ST PAUL MINN ORDINANCE PROHIBITING DISPLAYS SUCH AS BURNING CROSSES THAT COULD BE EXPECTED TO AROUSE ANGER OR ALARM THOUGH DIVIDED ON THEIR REASONING THE JUSTICES UNANIMOUSLY CONCLUDED THAT THE ST PAUL ORDINANCE VIOLATED THE FIRST AMENDMENT'S GUARANTEE OF FREE SPEECH BY BANNING SYMBOLS BASED ON THEIR MESSAGE SOME STATE COURTS INTERPRETED THAT RULING AS CONDEMNING PENALTYENHANCEMENT STATUTES AS WELL THE WISCONSIN SUPREME COURT FOR EXAMPLE STRUCK DOWN THAT STATE'S STATUTE FOR PUNISHING WHAT THE STATE LEGISLATURE HAS DEEMED TO BE OFFENSIVE THOUGHT BUT THE US SUPREME COURT REVERSED THAT DECISION THE CASE INVOLVED A BLACK MAN WHO EXHORTED A GROUP OF BLACK MEN TO ATTACK A WHITE YOUTH BECAUSE OF HIS RACE THE DEFENDANT WAS SENTENCED TO FOUR YEARS FOR AGGRAVATED BATTERY WITHOUT RAC IST MOTIVATION HE COULD HAVE BEEN SEN TENCED AT MOST TO TWO YEARS IN A 12PAGE OPINION BY CHIEF JUSTICE WILLIAM REHNQUIST THE SUPREME COURT SAID THERE IS NOTHING IMPROPER ABOUT A JUDGE'S CONSIDERING A DEFENDANT'S MOTIVATION AS LONG AS THE CRIME CONSISTS OF CONDUCT AS OPPOSED TO A FORM OF EXPRES SION REFERRING TO LAST YEAR'S RULING CHIEF JUSTICE REHNQUIST STRESSED THAT THE ST PAUL ORDINANCE WAS EXPLICITLY DIRECTED AT EXPRESSION WHILE THE WISCONSIN STATUTE IS AIMED AT CONDUCT UNPROTECTED BY THE FIRST AMENDMENT HE DIDN'T ADDRESS DIRECTLY THE CONTENTION THAT CROSSBURNING ALSO MAY BE VIEWED AS CONDUCT RATHER THAN EXPRESSION FOCUSING ON A DIFFERENT CLAUSE OF THE FIRST AMENDMENT ALL NINE JUSTICES AGREED THAT HIALEAH'S BAN ON RITUAL ANIMAL SACRIFICE VIOLATED THE GUARANTEE OF FREE EXERCISE OF RELIGION THE REASONING OF THE MAIN OPINION HOWEVER LEFT ROOM FOR GOVERNMENT OFFICIALS TO REGULATE RELIGIOUS PRACTICES AS LONG AS THEY AREN'T SPECIFICALLY PROHIBITED THE MAIN OPINION WRITTEN BY JUSTICE ANTHONY KENNEDY ADOPTED THE REASONING OF A CONTROVERSIAL 1990 RULING IN WHICH THE HIGH COURT GAVE GOVERNMENT GREATER LATITUDE TO IMPINGE ON RELIGION THAT RULING IN A CASE FROM OREGON SAID THAT LAWS THAT ARE NEUTRAL AND APPLY GENERALLY TO ALL PEOPLE TYPICALLY WILL PASS CONSTITUTIONAL MUSTER EVEN IF THEY RESTRICT SOME RELIGIOUS PRACTICES BEFORE THE 1990 RULING THE HIGH COURT TYPICALLY HAD REQUIRED AN EXTRAORDINARY OR COMPELLING GOVERNMENT PURPOSE TO JUSTIFY ENCROACHMENTS ON RELIGION APPLYING THE 1990 CASE JUSTICE KENNEDY SAID THAT HIALEAH'S ANIMALSACRIFICE BAN WASN'T NEUTRAL INSTEAD A SERIES OF FOUR OVERLAPPING ORDINANCES WERE PASSED SPECIFICALLY TO BAN THE RITUAL KILLING OF CHICKENS GOATS AND OTHER ANIMALS BY BELIEVERS IN AN AFROCARIBBEAN RELIGION KNOWN AS SANTERIA HIALEAH COULD HAVE ACCOMPLISHED ITS LEGITIMATE GOALS OF PROTECTING PUBLIC HEALTH AND PREVENTING CRUELTY TO ANIMALS WITH LAWS THAT DIDN'T TARGET A PARTICULAR RELIGION JUSTICE KENNEDY WROTE TENS OF THOUSANDS OF PEOPLE MOSTLY CUBANAMERICANS PRACTICE SANTERIA IN SOUTH FLORIDA AS WELL AS IN NEW JERSEY AND OTHER STATES JOINING ALL OR MOST CRITICAL PARTS OF JUSTICE KENNEDY'S OPINION WERE CHIEF JUSTICE REHNQUIST AND JUSTICES BYRON WHITE JOHN PAUL STEVENS ANTONIN SCALIA AND CLARENCE THOMAS JUSTICE DAVID SOUTER WROTE A SEPARATE PARTIAL CONCURRENCE EXPRESSING STRONG DOUBTS ABOUT WHETHER THE COURT SHOULD CONTINUE TO FOLLOW THE 1990 RULING JUSTICES HARRY BLACKMUN AND SANDRA DAY O'CONNOR CONCURRED ONLY IN THE RESULT REITERATING THEIR REJECTION OF THE 1990 PRECEDENT ACCUSING THE HIGH COURT OF FAILING TO REQUIRE BROAD ACCOMODATION OF RELIGIOUS PRACTICES RELIGIOUSFREEDOM ADVOCATES SAID THEY WOULD PUSH FOR ENACTMENT OF LEGISLATION THAT WOULD OVERRULE THE 1990 CASE SUCH A BILL WHICH HAS ALREADY PASSED THE HOUSE IS EXPECTED TO GAIN MOMENTUM IN THE SENATE AS A RESULT OF FRIDAY'S HIGH COURT DECISION PRESIDENT CLINTON HAS SAID HE WOULD SIGN THE BILL INTO LAW CHURCH OF THE LUKUMI BABALU AYE VS HIALEAH 9306140036 930614 BUSINESS BRIEF UNIGESCO INC FIRM REACHES AGREEMENTS TO SELL ITS STAKE IN UNIVA UNIGESCO INC SAID IT REACHED AGREEMENTS TO SELL ITS 26 STAKE IN UNIVA INC QUEBEC'S BIGGEST SUPERMARKET COMPANY TO TWO CANADIAN INSTITUTIONAL INVESTORS FOR A TOTAL OF C196 MILLION US1533 MILLION UNIGESCO SAID CAISSE DE DEPOT ET PLACEMENT DU QUEBEC QUEBEC'S PENSIONMANAGEMENT AGENCY AGREED TO BUY 201 MILLION SHARES OF UNIVA FOR C850 EACH OR A TOTAL OF C171 MILLION SEPARATELY THE TEACHERS' PENSION PLAN BOARD OF ONTARIO WILL EXCHANGE A C25 MILLION UNIGESCO DEBENTURE FOR 2247250 SHARES OF UNIVA UNIGESCO SAID THE AGREEMENTS FOLLOW THE COLLAPSE OF TWO RECENT ATTEMPTS BY UNIGESCO A HOLDING COMPANY WITH HARDWAREDISTRIBUTION OPERATIONS TO SELL SOME OR ALL OF ITS UNIVA SHARES TO NEW YORK INVESTMENT FUNDS UNIGESCO UNDER PRESSURE TO RAISE CASH TO MEET DEBT OBLIGATIONS SAID THE PROPOSED PURCHASE BY CAISSE IS SUBJECT TO CERTAIN CONDITIONS INCLUDING REGULATORY APPROVALS THE CONSENT OF UNIGESCO'S BANKERS AND THE ADOPTION OF UNIGESCO'S FINANCIAL PLAN BY CONVERTIBLE DEBENTURE HOLDERS 9306140033 930614 OTC FOCUS AMERICAN POWER FACES NEW CHALLENGE AS RIVAL BEST POWER FILES TO GO PUBLIC BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMERICAN POWER CONVERSION HAS BEEN DEFYING THE SKEPTICS AS THE STOCK KEEPS SOARING BEYOND WALL STREET'S WILDEST EXPECTATIONS SOUNDS LIKE A SETUP FOR A BIG FALL THAT'S WHAT CRITICS HAVE BEEN SAYING FOR YEARS BUT NOW THAT ANOTHER MAKER OF ELECTRICAL SURGEPROTECTION DEVICES BEST POWER TECHNOLOGY OF NECEDAH WIS HAS FILED TO GO PUBLIC AT A MUCH LOWER VALUATION BEARS SAY THEIR CASE HAS ADDED AMMUNITION AS OF MIDMAY AMERICAN POWER CONVERSION RANKED AS THE NASDAQ'S SECONDLARGEST SHORT POSITION WITH 64 MILLION SHARES SOLD SHORT THAT'S ABOUT 15 OF THE STOCK THOUGH SUCH FIGURES CAN BE IMPRECISE IN A SHORT SALE STOCK IS BORROWED AND SOLD BY AN INVESTOR EXPECTING THE PRICE TO DROP BUT BEARS HAVE BEEN GETTING CLOBBERED IN THIS AND SEVERAL OTHER STOCKS LATELY THE REASON SHEDS LIGHT ON A PATTERN OFTEN SEEN IN THE MARKET TODAY IF A COMPANY WITH A HEAVY SHORT POSITION DOES SOMETHING RIGHT SAY PUTS OUT A STRONG EARNINGS REPORT THE BULLS KNOWN AS EARNINGS MOMENTUM PLAYERS MAY RUSH IN TO BUY THE STOCK THEN RISES CAUSING THE SHORTS TO PANIC AND BAIL OUT BY BUYING STOCK TOO THIS IS A SHORT SQUEEZE AND IT HAS BEEN HAPPENING AT AMERICAN POWER CONVERSION AMERICAN POWER HAS RUN AWAY FROM THE SHORTS BY POSTING HIGHERTHANEXPECTED EARNINGS EVER SINCE IT WENT PUBLIC IN 1988 AT 50 CENTS A SHARE ADJUSTED FOR STOCK SPLITS THE WEST KINGSTON RI COMPANY EARNED 18 CENTS A SHARE FOR THE FIRST QUARTER AN 80 LEAP FROM 10 CENTS A YEAR EARLIER SHORTS CALL THE COMPANY A COMMODITY BUSINESS WITH LOW BARRIERS TO ENTRY AND VULNERABLE TO PRICE COMPETITION THEY SAY MOMENTUM IN AMERICAN POWER'S EARNINGS GROWTH WILL SLOW THE STOCK'S PEFORMANCE HAS SO FAR QUASHED THESE ARGUMENTS AND ON FRIDAY FINISHED UNCHANGED AT 36 1/2 MORE THAN TRIPLE ITS 52WEEK LOW OF 11 3/4 FANS SAY THAT GROWTH PERFORMANCE JUSTIFIES THE STOCK'S PRICETOEARNINGS MULTIPLE OF 60 TIMES LAST YEAR'S EARNINGS OF 61 CENTS A SHARE BUT BEST POWER'S RECENT DISCLOSURE OF PLANS TO GO PUBLIC WITH STOCK PRICED AT AN INDICATED MULTIPLE OF AROUND 13 TIMES LAST YEAR'S PERSHARE EARNINGS OF 115 HAS ADDED FUEL TO THE SHORTS' CASE THEY SAY BEST IS ONLY ONE OF SEVERAL COMPETITORS FOR AMERICAN POWER'S PRODUCTS MANY OF WHICH THEY DEEM EASY TO DUPLICATE BEST PLANS TO GO PUBLIC NEXT MONTH BY OFFERING 28 MILLION SHARES AT BETWEEN 13 AND 15 A SHARE BEST MAKES UNINTERRUPTIBLE POWER SUPPLY PRODUCTS AND SURGEPROTECTION DEVICES PRIMARILY FOR BIGGER COMPUTERS TWO MAJOR CUSTOMERS ARE INTERNATIONAL BUSINESS MACHINES AND MOTOROLA THE OFFERING DOCUMENTS SAY BEST POSTED FIRSTQUARTER EARNINGS OF 32 CENTS A SHARE A 78 JUMP FROM LAST YEAR'S 18 CENTS REVENUE ROSE 9 FOR THE PERIOD ANALYSTS SAY AMERICAN POWER'S PRODUCTS FEED THE LESSCOSTLY AND FASTESTGROWING END OF THE BUSINESS TYPICALLY PROTECTING PERSONAL COMPUTERS AND OTHER SENSITIVE ELECTRONIC DEVICES FROM BEING ZAPPED BY A JOLT OF ELECTRICITY SHORTS CITE AMERICAN POWER'S INVENTORY BACKLOG CITING ITS INCREASE AS A HARBINGER OF WEAKENING SALES AS OF DEC 31 1992 THE COMPANY HAD 112 MILLION IN FINISHED GOODS NEARLY DOUBLE 1991'S 65 MILLION RICK MARTIN AN ANALYST WITH CHICAGO CORP STILL RATES AMERICAN POWER STOCK A BUY AND DISMISSES THE CRITICS PERIODICALLY THE COMPANY DOES HAVE PRICE CUTS HE SAYS BUT THERE AREN'T ANY PRICE CUTS PLANNED FOR SOME TIME RIGHT NOW IS THE PEAK SELLING SEASONTHROUGH SEPTEMBER HE SAYS POWER OUTAGES IN SUMMER STORMS MAKE THIS SEASON ONE OF THE COMPANY'S BEST HE SAYS THE INVENTORY BACKLOG IS ALSO SEASONAL MR MARTIN SCOFFS AT THE POSSIBILITY OF PRODUCT DEMAND'S DRYING UP ANY TIME SOON UNINTERRUPTIBLE POWER SUPPLIES HAVE ONLY PENETRATED 10 OF THE POTENTIAL MARKET AT THIS POINT HE SAYS AMERICAN POWER HAS A GREAT STRUCTURE FOR SERVICING THE LOWEND PERSONAL COMPUTER MARKET AND MANY OF ITS COMPETITORS INCLUDING BEST ARE JUST MOVING TOWARD THIS DIRECTION AND AWAY FROM THE MAINFRAME MARKET THE ONLY PEOPLE WITH A COMPLAINT ABOUT THE COMPANY ARE THE SHORTS SAYS ROGER MCNAMEE OF INTEGRAL PARTNERS IN PALO ALTO CALIF EVENTUALLY THEY WILL BE RIGHT BUT MANAGEMENT NEEDS TO KEEP HAVING GOOD QUARTERS TO BEAT THEM THE NASDAQ COMPOSITE INDEX ROSE 514 POINTS OR 075 TO FINISH AT 69319 GAINERS OUTNUMBERED DECLINERS 1508 ISSUES TO 1110 ON VOLUME OF 2352 MILLION SHARES DOWN FROM THURSDAY'S 2423 MILLION THE DAY'S SECOND MOST ACTIVE STOCK TOPPS CO ROSE 3/4 TO 10 1/2 ON 45 MILLION SHARES MORE THAN 11 TIMES ITS NORMAL VOLUME ANALYSTS SAID THE STOCK ROSE BECAUSE THE BROOKLYN NY COMPANY HAS JURASSIC PARK LICENSING RIGHTS FOR CARDS AND COMIC BOOKS THE FILM OPENED FRIDAY TECHNOLOGY STOCKS WERE MIXED MICROSOFT DROPPED 1 3/4 TO 89 3/8 AND APPLE COMPUTER SLID 3/4 TO 43 3/4 BUT INTEL JUMPED 1 7/8 TO 56 1/2 AND SUN MICROSYSTEMS ROSE 1 1/4 TO 31 9306140032 930614 ENTERTAINMENT MGM MAY ADD FRANK MANCUSO TO STUDIO CAST BY RICHARD TURNER STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD NEXT TIME THE MUSIC STOPS IN THE ENTERTAINMENT INDUSTRY'S HIGHSTAKES GAME OF MUSICAL CHAIRS THE FORMER STUDIO CHIEF FOR PARAMOUNT COMMUNICATIONS INC MAY LAND A SEAT AT MGM METROGOLDWYNMAYER INC SEEKING TO JUMPSTART ITS STRUGGLING FILM OPERATION IS IN DISCUSSIONS TO APPOINT FRANK MANCUSO CHAIRMAN OF PARAMOUNT PICTURES FOR SEVEN YEARS TO A TOP EXECUTIVE POSITION ACCORDING TO INDIVIDUALS CLOSE TO THE SITUATION WHAT PRECISE POST MR MANCUSO WOULD ASSUME WASN'T KNOWN BUT ONE SCENARIO INVOLVES BIFURCATING MGM INTO SEPARATELY FUNDED PRODUCTION ARMS MGM AND UNITED ARTISTS WITH MR MANCUSO RUNNING UA AND CURRENT MGM CHAIRMAN AND CHIEF EXECUTIVE ALAN LADD JR RUNNING MGM BOTH COMPANIES WOULD FUNNEL THEIR MOVIES THROUGH AN MGM/UA DISTRIBUTION ARM WHICH MIGHT ALSO BE HEADED BY MR MANCUSO MR MANCUSO DIDN'T RETURN PHONE CALLS INDEED MR MANCUSO 59 IS KNOWN IN THE BUSINESS AS A DISTRIBUTION EXPERT IN THE PART OF THE INDUSTRY THAT PLACES FILMS IN THEATERS TRYING TO MAXIMIZE A FILM'S POTENTIAL BY OPENING A MOVIE ON THE RIGHT NUMBER OF SCREENS IN THE RIGHT LOCATIONS AND AT TERMS WHICH WILL GET THEATER OWNERS TO SUPPORT IT IN HIS 29YEAR CAREER AT PARAMOUNT MR MANCUSO HEADED DISTRIBUTION UNTIL BECOMING CHAIRMAN OF PARAMOUNT PICTURES WHEN BARRY DILLER AND MICHAEL EISNER LEFT THE STUDIO IN 1984 HE WAS FORCED OUT IN 1991 AFTER A COLD STREAK THAT INCLUDED SUCH FILMS AS THE GODFATHER PART III AND DAYS OF THUNDER MGM HAS A HOST OF PROBLEMS BUT ITS WEAK DISTRIBUTION CAPABILITY IS A KEY ONE AND FOR MR MANCUSO TO ALIGHT THERE WOULD SERVE A CRITICAL PURPOSE FOR THE STUDIO OR SO GOES THE REASONING OF FRENCH STATEOWNED BANK CREDIT LYONNAIS SA WHICH OWNS 985 OF THE STUDIO AND ITS ADVISER MICHAEL OVITZ'S CREATIVE ARTISTS AGENCY MGM AND CAA DECLINED COMMENT THE IMPORTANCE OF RESUSCITATING MGM'S DISTRIBUTION OPERATION WAS DRAMATIZED EARLIER THIS YEAR AFTER MGM INVESTED 60 MILLION IN CAROLCO PICTURES INC AND WON THE RIGHTS TO DISTRIBUTE THE COMPANY'S FILMS IN US THEATERS STARTING IN 1994 CAROLCO MAKER OF THE TERMINATOR AND RAMBO MOVIES BASIC INSTINCT AND TOTAL RECALL HAD DISTRIBUTED ITS FILMS THROUGH THE TRISTAR UNIT OF SONY CORP BUT AFTER THE TRANSACTION SOME MAJOR FILMMAKERS WITH RELATIONSHIPS WITH CAROLCO BEGAN PRIVATELY GRUMBLING THAT THEIR PROJECTS WOULD SUFFER BECAUSE MGM LACKED THE DISTRIBUTION MUSCLE OF THE SIX MAJOR STUDIOS AMONG CAROLCO'S POSSIBLE FUTURE LARGESCALE FILMS ARE SPIDERMAN AND TERMINATOR 3 FROM DIRECTOR JAMES CAMERON AND THE CRUSADES WITH ARNOLD SCHWARZENEGGER THEIR FEARS HAD SOME VALIDITY ALTHOUGH MGM IS A LEGENDARY MOVIE STUDIO LEGAL AND FINANCIAL WOES AND A SUCCESSION OF OWNERS HAVE HOBBLED IT IT STILL POSSESSES A DISTRIBUTION INFRASTRUCTURE REGIONAL SALES OFFICES AND THE LIKE BUT ITS FLOW OF MOVIES HAD BEEN SO DISRUPTED THAT IT LACKED CLOUT WITH THEATERS MGM'S MUCHPRAISED THELMA AND LOUISE IN 1991 FOR INSTANCE IS THOUGHT TO HAVE FAILED TO REACH ITS POTENTIAL AT THE BOX OFFICE THE WHOLE PICTURE WORSENED WHEN A SERIES OF MGM FILMS MOST RECENTLY DIGGSTOWN RICH IN LOVE UNTAMED HEART AND BENNY & JOON SKIDDED IN TICKET SALES DESPITE GENERALLY DECENT REVIEWS AND TEST SCREENINGS MGM'S PRODUCTION TEAM HEADED BY MR LADD IS WELLLIKED BUT THE UNIT BADLY NEEDS NOT ONLY A HIT MOVIE OR TWO BUT A STEADY FLOW OF SOLID FILMS TO REBUILD CONFIDENCE AMONG THEATER OWNERS AS WELL AS ACTORS DIRECTORS AND PRODUCERS THIS WAS PART OF CREDIT LYONNAIS'S AGENDA WHEN LAST SPRING IT NAMED CAA ITS ADVISER ON A HOST OF INFIRM ENTERTAINMENT INVESTMENTS BUT MOST NOTABLY MGM INTO WHICH THE BANK HAS POURED ABOUT 2 BILLION EVER SINCE EXECUTIVE SHAKEUPS AT MGM SEEMED LIKELY LAST MONTH COMPANY COCHIEF EXECUTIVE DENNIS STANFILL LEFT THE COMPANY AND SOME OBSERVERS NOW QUESTION WHETHER MR LADD AND MR MANCUSO COULD SHARE POWER INDEFINITELY MR LADD WOULDN'T COMMENT CAA'S CHARGE MEANWHILE IS TO FIND A BUYER FOR MGM A TASK WHICH WILL BE MADE EASIER WHEN A MOVIEMAKING RHYTHM BEGINS TO TAKE HOLD MR MANCUSO HAS BEEN PERHAPS HOLLYWOOD'S MOST PROMINENT FILM EXECUTIVE WITHOUT PORTFOLIO SINCE HE WAS SUCCEEDED IN MARCH 1991 BY BRANDON TARTIKOFF WHO SINCE HAS MOVED ON SUCCEEDED BY SHERRY LANSING TO RETAIN HIM WOULD BE EXPENSIVE HE HAS IN THE PAST INDICATED PRIVATELY THAT HE'D REQUIRE SOME SORT OF EQUITY OR PROFIT PARTICIPATION IN ANY COMPANY HE WOULD JOIN SOME INSIDERS CAUTIONED THAT TERMS STILL ARE BEING NEGOTIATED AND THE TALKS POSSIBLY COULD DERAIL MR MANCUSO SUED PARAMOUNT AFTER HIS DISMISSAL SAYING HIS CONTRACT HAD BEEN VIOLATED WHEN CURRENT PARAMOUNT PRESIDENT STANLEY JAFFE WAS BROUGHT IN ABOVE HIM A MOVE WHICH PRECIPITATED MR MANCUSO'S DEPARTURE HE RECEIVED A SETTLEMENT WHICH HAS BEEN VALUED AT BETWEEN 10 MILLION AND 20 MILLION LAST YEAR MR MANCUSO TRIED TO ASSEMBLE FINANCING FOR A BID TO ACQUIRE MGM SAY INDIVIDUALS CLOSE TO THE SITUATION BUT IT NEVER CAME OFF 9306140030 930614 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR THIS WEEK'S REPORT ON CONSUMER PRICES SHOULD PROVIDE FURTHER EVIDENCE THE ECONOMY ISN'T GROWING WITH ENOUGH VIGOR TO SUPPORT SUSTAINED PRICE INCREASES MANY ECONOMISTS SAY MODERATING FOOD TOBACCO AND RENTERS COSTS PROBABLY HELPED LIMIT THE MAY CONSUMER PRICE INDEX TO A 02 INCREASE DOWN FROM 04 IN APRIL A FAVORABLE CPI REPORT FOLLOWING LAST WEEKS NEWS THAT PRODUCER PRICES WERE UNCHANGED IN MAY SHOULD CLOSE THE BOOK ON FEARS OF RENEWED INFLATION SAID KEVIN FLANAGAN MONEY MARKET ANALYST AT DEAN WITTER REYNOLDS INC THIS SHOULD SHOW THAT MANY OF THE PRICE INCREASES IN APRIL WERE AN ABERRATION MR FLANAGAN SAID FOR EXAMPLE HE ASSERTED FOOD PRICES IN APRIL WERE ARTIFICIALLY INFLATED BY EFFECTS FROM BAD WEATHER IN MARCH ALSO THIS WEEKS GOVERNMENT REPORT ON INDUSTRIAL PRODUCTION AND CAPACITY UTILIZATION SHOULD SHOW THE MANUFACTURING SECTOR IS STILL TOO WEAK TO TRIGGER AN INFLATION EXPLOSION MR FLANAGAN SAID THERE IS STILL A LOT OF SLACK IN THE ECONOMY PROVIDING MORE EVIDENCE THERE ISN'T ANY SUBSTANTIAL UPWARD PRESSURE ON PRICES HE ADDED FAVORABLE CONSUMER AND PRODUCER PRICES REPORTS SHOULD PLEASE THE INFLATIONCONSCIOUS FED WHICH REPORTEDLY HAD BEEN POISED TO RAISE INTEREST RATES IF THE PRICE INDEXES CONTINUED ADVANCING RAPIDLY 9306140029 930614 LETTERS TO THE EDITOR SKEETER EATERS THE DESCRIPTION OF GRIGGSVILLE ILL'S PURPLE MARTIN COLONIES IN YOUR APRIL 30 STORY ON PAGE ONE STIRRED OLD MEMORIES BACK IN THE EARLY YEARS OF WORLD WAR II I AND ANOTHER FOURTHGRADER OFTEN PLAYED ALONG THE BANKS OF THE KANKAKEE RIVER WHERE THERE STOOD ONE OF FRANK LLOYD WRIGHT'S CLASSIC DESIGNS ITS OWNER JOSEPH DOBSON BUILT CUSTOM WOOD HOUSES FOR THE PURPLE MARTINS THAT RETURNED EACH YEAR THESE WERE MULTIROOM AESTHETICALLY PLEASING HOUSES THAT EVEN MR WRIGHT MIGHT HAVE LIKED LOCAL LEGEND HAD IT THAT MR DOBSON OFFERED 10000 TO ANYONE BITTEN BY A MOSQUITO WHILE AT HIS HOME I KNOW OF NO ONE WHO EVER COLLECTED 9306140027 930614 REVIEW & OUTLOOK EDITORIAL SOMALI AWAKENING WHEN HIS BANDITS MASSACRED AND MUTILATED 23 PAKISTANI SOLDIERS SOMALI WARLORD MOHAMMED FARAH AIDID GAMBLED THAT KILLING PAKISTANI UN TROOPS WOULD NOT RESULT IN THE SAME RETRIBUTION AS KILLING AMERICANS HE GAMBLED WRONG PERHAPS MR AIDID THOUGHT THE UN EFFORT IN SOMALIA WAS JUST ANOTHER FIASCO IN WHICH INSUFFICIENT NUMBERS OF BLUE HELMETS ARE SENT INTO A HELLHOLE WITHOUT A CLEAR MANDATE OR AUTHORITY THE SIGNS WERE ALL THERE THE US ANNOUNCED THAT IT WAS HANDING OVER AUTHORITY TO THE UN THE UN SOLDIERS WERE HELD IN INCREASING CONTEMPT BY THE POPULACE WHILE THE WORLD LOOKED ELSEWHERE US UNDERSECRETARY OF STATE PETER TARNOFF DECLARED ON MAY 25TH THAT THE US NO LONGER HAD THE WILL WALLET OR INFLUENCE TO INTERVENE AROUND THE WORLD AND WOULD SAVE ITS POWER FOR THOSE SITUATIONS WHICH THREATEN OUR DEEPEST NATIONAL INTEREST BILL CLINTON DECIDED OTHERWISE THE MESSAGE OF THIS WEEKEND'S ALLIED ATTACKS ON AIDID'S ARMS WAREHOUSES IS THAT IN SOMALIA AT LEAST UN TROOPS CANNOT BE MURDERED AND DISEMBOWELED WITH IMPUNITY IN THAT COUNTRY AT LEAST THE US IS WILLING TO ASSUME THE ROLE OF ENFORCER OF LAST RESORT TO SUPPORT THE OTHERWISE SHALLOW POWER OF THE UN IT WAS PAKISTANIS WHO WERE KILLED BUT A USLED COALITION THAT CONDUCTED THE REPRISALS WE ALMOST SYMPATHIZE WITH MR AIDID'S CONFUSION OVER WHETHER THE US WOULD INTERVENE THE MARK OF THIS NEW ERA SEEM TO BE THAT THERE IS NO EASY WAY TO PREDICT US PARTICIPATION IF IT IS CONFUSING FOR FOREIGN POLICY GURUS WE HOPE IT IS AT LEAST DISORIENTING FOR THE WORLD'S AGGRESSORS MR AIDID IS THE SOMALI WARLORD WHO HAS SEEN HIS INFLUENCE WANE MOST PRECIPITOUSLY DURING THE MONTHS OF US AND UN PRESENCE THE COORDINATED AMBUSHES AGAINST THE PAKISTANIS WERE A NAKED ATTEMPT TO REESTABLISH HIS PRIMACY THE PAKSTANI SOLDIERS WERE QUICKLY SURROUNDED AT ONE POINT AROUND A FEEDING STATION THEY WERE PROTECTING ROCK THROWING WOMEN AND CHILDREN WERE USED BY THE AIDID MILITIA AS SHIELDS AIDID HAS SINCE MADE RADIO BROADCASTS JUSTIFYING THE ATTACKS THIS WAS NO NATIVE UPRISING AGAINST COLONIAL AGGRESSION BUT A WARLORD'S POWER GRAB AIDID LOYALISTS HAVE HIT THE STREETS AND THE WORLD'S TELEVISION SCREENS HURLING THE USUAL ANTIUS AND ANTIWESTERN SLOGANS WITH THE USUAL MENDACIOUSNESS THE TONE OF THE REPORTS SUGGESTS THE ANGER OF PEOPLE WHO HAVE JUST BEEN SHELLED IS PROOF THAT THE SHELLING IS WRONG PRINT REPORTERS HAVE DONE A BETTER JOB OF COVERING THE ARRAY OF SOMALI OPINION WITH THE WASHINGTON POST FOR EXAMPLE GETTING THE VIEW FROM SOMALI JOURNALIST HASSAN MOHAMAD AIDID'S PEOPLE THINK IT'S UNFAIR BUT IF YOU ASK THE OTHER SOMALIS THEY SAY IT'S ABOUT TIME SOMEBODY TAKES CARE OF THIS GUY THE MAIN SOMALI BEEF IS NOT THAT THE WEST IS AN OPPRESSOR BUT THAT THE US HAS NOT ACTED FORCEFULLY ENOUGH MOST SOMALIS WISH THAT THE US HAD FULLY DISARMED ALL THE WARLORDS EASIER SAID THAN DONE THE PRACTICAL US/UN MISSION IS TO OCCUPY ENOUGH POLITICAL SPACE TO PREVENT CIVIL WAR TO GUARANTEE ENOUGH SECURITY TO LET AID GET THROUGH AND TO PREVENT EGREGIOUS POWER GRABS SO THAT SOMALIS WILL AT LEAST HAVE A CHANCE AT DECENT GOVERNMENT THIS WEEKEND'S ATTACKS PASS ALL THREE CRITERIA IN THE LONG RUN THE STILLARMED FACTIONS MAY WAIT OUT THE UN PRESENCE AND SOMEDAY CONTINUE THEIR PLUNDERING OF THE NATION BUT SO FAR THE SOMALI OPERATION HAS CONFORMED TO ITS STATED GOALS AND HAS TO BE REGARDED AS A SUCCESS 9306140026 930614 POLITICS & POLICY CAMPBELL TO BECOME PRIME MINISTER OF CANADA FOLLOWING PARTY ELECTION BY JOHN URQUHART AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA KIM CAMPBELL CANADA'S DEFENSE MINISTER WAS ELECTED LEADER OF THE RULING PROGRESSIVE CONSERVATIVE PARTY IN A VICTORY THAT WILL MAKE HER THE COUNTRY'S FIRST WOMAN PRIME MINISTER THIS MONTH MS CAMPBELL A 46YEAROLD LAWYER FROM BRITISH COLUMBIA SUCCEEDS BRIAN MULRONEY WHO IS RETIRING AFTER NINE YEARS AS GOVERNMENT LEADER THE CONSERVATIVES ARE COUNTING ON MS CAMPBELL TO PROVE POLLSTERS WRONG AND LEAD THEM TO VICTORY IN THE NEXT ELECTION WHICH MUST BE HELD BY NOVEMBER A GALLUP POLL ANALYST HAS WARNED THAT A CAMPBELLLED CONSERVATIVE PARTY WOULD FACE ELECTORAL DISASTER MS CAMPBELL HAS UPSET MANY CANADIANS WITH HER FRANK AND IRREVERENT COMMENTS ON POLITICS AND OTHER MATTERS IN A MAGAZINE INTERVIEW SHE DISMISSED AS CONDESCENDING SOBS PEOPLE WHO BOAST THAT THEY STEER CLEAR OF POLITICS TO HELL WITH THEM SHE SAID MS CAMPBELL'S POPULARITY ALSO HAS BEEN HURT BY REPEATED MEDIA REFERENCES TO HER TWO DIVORCES SHE IS NOW SINGLE AND HAS COMMENTED ON THE UNSPEAKABLE LONELINESS OF LIVING IN THE NATION'S CAPITAL FAR FROM HER WEST COAST HOME AT THE LEADERSHIP CONVENTION MS CAMPBELL EDGED OUT FOUR OTHER CANDIDATES ALL MEMBERS OF PARLIAMENT IN THE FINAL BALLOT SHE DEFEATED HER CHIEF RIVAL ENVIRONMENT MINISTER JEAN CHAREST WINNING 53 OF THE 3447 VOTES CAST MS CAMPBELL STRONGLY SUPPORTS THE NORTH AMERICAN FREE TRADE AGREEMENT AND HAS SUGGESTED BROADENING THE PACT TO INCLUDE ASIAN COUNTRIES THE AGREEMENT WHICH WOULD GRADUALLY DISMANTLE TRADE BARRIERS AMONG THE US CANADA AND MEXICO IS TO TAKE EFFECT JAN 1 PROVIDED IT IS APPROVED BY THE LEGISLATURES OF THE THREE COUNTRIES MS CAMPBELL'S TOP PRIORITY IS TO DRAFT A NATIONAL PLAN TO DEAL WITH THE BUDGET DEFICITS OF THE FEDERAL AND PROVINCIAL GOVERNMENTS WHICH ARE EXPECTED TO TOTAL ABOUT 53 BILLION CANADIAN DOLLARS US414 BILLION THIS YEAR SHE SAYS SHE FEELS PASSIONATELY ABOUT THE DEFICIT ISSUE SHE PROPOSES TO FREEZE SPENDING ON FEDERAL GOVERNMENT PROGRAMS FOR FIVE YEARS BUT SHE DOESN'T INTEND TO ADD TO THE COMPARATIVELY HEAVY TAX BURDEN THAT CANADIANS SHOULDER SHE PROMISED NO NEW TAXES AND NO INCREASES IN EXISTING TAXES FOR THE NEXT FIVE YEARS MS CAMPBELL STRONGLY DEFENDS THE ANTIINFLATION GOALS OF THE BANK OF CANADA AND HAS RECOMMENDED THAT THE CENTRAL BANK'S INDEPENDENCE BE INCREASED TO PROTECT IT FROM POLITICAL INTERFERENCE THE CENTRAL BANK HAS BEEN FACING GROWING DEMANDS FROM POLITICIANS AND BUSINESSMEN TO EASE ITS MONETARY RESTRAINTS WOMEN'S GROUPS HAVE BEEN AMONG MS CAMPBELL'S SHARPEST CRITICS PARTICULARLY BECAUSE OF HER PLAN TO REEXAMINE WHETHER ALL CANADIANS REGARDLESS OF INCOME SHOULD BE ENTITLED TO VARIOUS SOCIAL SECURITY BENEFITS HER NEOCONSERVATIVE POSITIONS ARE NEGATIVE FOR WOMEN SAID JUDY REBICK PAST PRESIDENT OF THE NATIONAL ACTION COMMITTEE ON THE STATUS OF WOMEN A WOMEN'S LOBBY GROUP 9306140025 930614 MARKETING & MEDIA SYRINGES IN DIET PEPSI CANS PROMPT WARNING BY FDA SEATTLE AP THE FOOD AND DRUG ADMINISTRATION WARNED DIET PEPSI DRINKERS IN FOUR WESTERN STATES TO DRINK FROM A GLASS AND TO EXAMINE THEIR SODA CANS FOR SYRINGES AFTER CONSUMERS FOUND HYPODERMIC NEEDLES IN TWO CANS LAST WEEK THE NEEDLES WERE IN TWO SEALED SODA CANS THAT HAD BEEN FILLED SIX MONTHS APART SAID SUSAN HERBERT A SPOKESWOMAN FOR ALPAC CORP THE REGIONAL BOTTLER AND DISTRIBUTOR FOR PEPSICO INC NO INJURIES WERE REPORTED AND INITIAL TESTS SHOWED NO SIGN OF CONTAMINATION IN THE CANS THE FDA SAID THE ACIDITY OF THE SOFT DRINK WOULD KILL ALMOST ANY BACTERIA OR VIRUS SAID ROGER LOWELL A DISTRICT FDA DIRECTOR CONSUMERS IN AREAS WHERE ALPAC DISTRIBUTES WASHINGTON OREGON ALASKA HAWAII AND THE US TERRITORY OF GUAM SHOULD INSPECT THEIR CANS OF DIET PEPSI CLOSELY BEFORE DRINKING THE FDA SAID A SPOKESMAN FOR PEPSI BASED IN PURCHASE NY DIDN'T RETURN A CALL SEEKING A COMMENT ALPAC PRESIDENT KARL G BEHNKE SAID THE SYRINGES COULD HAVE BEEN PLACED IN THE CANS BEFORE THEY ARRIVED AT ALPAC DURING THE TWO OR THREE SECONDS AFTER THE CANS WERE FILLED AND BEFORE THE LIDS WERE ADDED OR AFTER THE CANS WERE OPENED 9306140024 930614 PREMIUM SALES CORP'S INVESTORS LOSE BIG BY LAURIE M GROSSMAN AND NIKHIL DEOGUN STAFF REPORTERS OF THE WALL STREET JOURNAL KENNETH THENEN A MIAMI ENTREPRENEUR FOUND INVESTORS FOR HIS COMPANY THE OLDFASHIONED WAY ON THE GOLF COURSE OVER DINNERS MICHAEL H WEISSER NOW A RETIRED LAWYER IN NORTH MIAMI BEACH RECALLS A TENNIS GAME FOUR YEARS AGO WITH HIS GOOD FRIEND MR THENEN DURING WHICH THE LATTER URGED MR WEISSER TO INVEST IN HIS NEW CONCERN OTHERS WERE ESCORTED TO INTIMATE FRENCH RESTAURANTS OR WENT ON THREEDAY JUNKETS TO EUROPE OFTEN ON THE CONCORDE ALL WERE BEING ENTICED TO PLACE THEIR MONEY ON PREMIUM SALES CORP A COMPANY THAT SPECIALIZES IN THE HIGHRISK LOWMARGIN BUSINESS OF DIVERTING SUCH CONCERNS BUY HUGE QUANTITIES OF GROCERYSTORE PRODUCTS IN ONE PART OF THE COUNTRY AND THEN SELL THEM AT A HIGHER PRICE IN ANOTHER IT'S A BUSINESS THAT RELIES HEAVILY ON COMPUTERS AND CASH MR WEISSER TOOK HIS FRIEND'S ADVICE AS INDIRECTLY DID MORE THAN 1000 OTHER WEALTHY INTELLIGENT AND NORMALLY CAUTIOUS INVESTORS MANY OF WHOM LIVE ON FLORIDA'S GOLD COAST THEY INCLUDE LAWYERS ACCOUNTANTS AND REALESTATE DEVELOPERS AND NOW THEY ALL MAY HAVE LOST AS MUCH AS 400 MILLION PREMIUM SALES WAS PLACED IN RECEIVERSHIP WEDNESDAY BY A FEDERAL JUDGE IN MIAMI AFTER THE SECURITIES AND EXCHANGE COMMISSION ACCUSED THE COMPANY AND ITS PRESIDENT MR THENEN OF DEFRAUDING INVESTORS AND CONDUCTING SHAM TRANSACTIONS ON FRIDAY REGULATORS CREDITORS' ATTORNEYS AND REPRESENTATIVES OF PREMIUM SALES GATHERED IN US DISTRICT COURT IN MIAMI TO BEGIN WRANGLING OVER THE COMPANY'S FUTURE INTERVIEWS IN RECENT DAYS WITH INVESTORS AS WELL AS WITH EMPLOYEES OF PREMIUM SALES INVESTIGATORS AND ATTORNEYS HAVE BEGUN TO PROVIDE A PICTURE OF HOW THE COMPANY WORKED OF MR THENEN'S EXTRAVAGANT LIFESTYLE OF HOW HE PERSUADED SO MANY TO PART WITH SO MUCH AND HOW IT ALL FELL APART PREMIUM SALES WAS FOUNDED BY MR THENEN IN 1989 THE 56YEAROLD EXECUTIVE WAS A LONGTIME MEMBER OF MIAMI'S BUSINESS COMMUNITY HE TURNED TO HIS GROUP OF WELLTODO ACQUAINTANCES WITH A SEEMINGLY PREPOSTEROUS PROMISE RETURNS OF AS MUCH AS 40 ON THEIR MONEY FOR THE EASILY CHARMED THERE WERE EVENINGS AT PROFESSIONAL BASKETBALL GAMES OR EVEN TRIPS TO THE CARIBBEAN ON A PRIVATE PLANE FOR SKEPTICS THERE WAS THE PREMIUM SALES HEADQUARTERS ITSELF THE ENTIRE FIFTH FLOOR OF A BLACKGLASS OFFICE TOWER IN THE OPULENT AVENTURA AREA OF NORTH MIAMI WHERE ABOUT 150 PEOPLE COULD BE FOUND BUSTLING ABOUT BUSINESS LOOKED GOOD VISITORS WERE ALWAYS SURE TO BE LED PAST A GIANT LCD DISPLAY THAT FLASHED PRODUCT NAMES LIKE RALSTON RICE CHEX AND THE SELLING PRICE BOTH MR THENEN AND HIS SALES MANAGER DANIEL MORRIS HAD THEIR OWN SUITE OF OFFICES THE FORMER WITH A PRIVATE RECREATION ROOM FEATURING A HALFMOON BAR THE LATTER WITH A BANG & OLUFSEN TELEVISION IN A PRIVATE VIEWING ROOM MEMOS FROM THOSE SUITES BEGAN WITH THE HEADING FROM THE DESK OF GOD IN ALL PREMIUM SALES CLAIMED TO HAVE A TOTAL OF 550 EMPLOYEES IN ITS MAIN OFFICE AND WAREHOUSES IN FORT LAUDERDALEFLA LAS VEGAS LEXINGTON KY SEATTLE PUERTO RICO AND SOUTHERN CALIFORNIA VISITORS TO THE FACILITIES FOUND FIRSTCLASS OPERATIONS EQUIPPED WITH FORKLIFTS COMPUTERS AND OTHER EQUIPMENT AND AS PROOF OF THE COMPANY'S TRANSACTIONS INVESTORS WERE SUPPLIED WITH COPIES OF INVOICES COMPLETE WITH NAMES AND TELEPHONE NUMBERS OF THE SUPPLIERS AND BUYERS WITH WHOM PREMIUM SALES WAS ALLEGEDLY DOING BUSINESS ACCORDING TO INVESTORS ABOUT A DOZEN PARTNERSHIPS EVENTUALLY WERE FORMED TO PROVIDE INVESTMENT FUNDS TO PREMIUM SALES IN ALMOST ALL CASES THE REQUIRED INVESTMENT WAS SUBSTANTIAL A MINIMUM OF 50000 TO 100000 BUT THE RETURNS DELIVERED EVERY WEEK OR EVERY MONTH WERE WONDERFUL SAYS MR WEISSER THE RETIRED LAWYER EVERYONE I KNEW WAS IN ON IT THE PROBLEM IS THAT PREMIUM SALES MAY HAVE BEEN LITTLE MORE THAN A CLASSIC PONZI SCHEME SAYS THOMAS TEW A MIAMI LAWYER WHO SERVED TEMPORARILY AS THE COMPANY'S RECEIVER LAST WEEK INSTEAD OF ACTUAL RETURNS INVESTORS WERE LIKELY GETTING BACK THEIR OWN MONEY OR MONEY RAISED FROM NEW INVESTORS ACCORDING TO REGULATORS AND ATTORNEYS PREMIUM SALES DID CONDUCT SOME BUSINESS REGULATORS SAY BUT THAT BUSINESS PROBABLY AMOUNTED TO JUST 10 OF THE 2 BILLION OR SO IN SALES THE COMPANY INDICATED IT MIGHT REPORT THIS YEAR MR THENEN ACCORDING TO ONE INVESTOR SAID HE WAS GIVING INVESTORS A 3 CUT OF SALES KEEPING 3 FOR HIMSELF AND SPENDING 3 ON SALARIES AND EXPENSES HE ALSO SAID SALES LAST YEAR TOTALED 900 MILLION BUT THE COMPANY NEVER PRODUCED A BALANCE SHEET FINANCIAL STATEMENT OR BUDGET IN 1992 ACCORDING TO LAURIE HOLTZ A FORENSIC ACCOUNTANT WHO REVIEWED THE COMPANY'S FINANCES LAST WEEK PREMIUM SALES ALSO NEGLECTED TO FILL OUT AN INCOME TAX FORM LAST YEAR ACCORDING TO MR HOLTZ MEANWHILE MR THENEN ALONG WITH MR MORRIS PREMIUM'S SALES MANAGER AND SEVERAL MEMBERS OF THEIR FAMILIES WHO HAD BEEN BROUGHT ON BOARD WERE DOING QUITE NICELY MR THENEN ACCORDING TO INVESTORS LIVES IN A CONDOMINIUM ON EXCLUSIVE WILLIAMS ISLAND WHERE TALL WHITE TOWERS A HEALTH SPA AND RESTAURANTS DOMINATE THE INTRACOASTAL WATERWAY MR MORRIS A WEIGHTLIFTER WHO OFTEN WORE POLO SHIRTS TO WORK ALTERNATELY DROVE A CORVETTE CONVERTIBLE A JEEP A JAGUAR CONVERTIBLE AND A RED FERRARI EMPLOYEES SAY HOWEVER MR MORRIS UNKNOWN TO INVESTORS HAD BEEN PRESIDENT OF A COMPANY THAT HAD FINANCIAL DIFFICULTIES IN THE PAST THAT COMPANY SOUTHERN MERCHANDISE DISTRIBUTING A WHOLESALE DISTRIBUTOR OF DRUGSTORE PRODUCTS IN HIALEAH FLA FILED FOR BANKRUPTCYLAW PROTECTION IN DECEMBER 1985 ACCORDING TO FEDERAL BANKRUPTCY FILINGS THE COMPANY OWED CREDITORS 31 MILLION AT THE TIME FILINGS SHOW NEWS OF MR MORRIS'S PAST INCLUDING ALLEGED FINANCIAL DIFFICULTIES INVOLVING MR THENEN SURFACED LAST MONTH IN FORBES MAGAZINE AND BROUGHT INVESTORS UP SHORT PLANS TO RAISE AN ADDITIONAL 100 MILLION FELL THROUGH ROBERT SHEVIN AN ATTORNEY WITH STROOCK & STROOCK & LAVAN SAID HE WAS CONTACTED ON JUNE 4 BY MR THENEN WHO ASKED THE ATTORNEY TO MEET WITH INVESTORS AND TO HELP PREMIUM SALES DEVELOP A REORGANIZATION PLAN STROOCK & STROOCK HIRED AN ACCOUNTANT AND BEGAN SIFTING THROUGH PREMIUM SALES'S BOOKS AND INVENTORY A SHOWDOWN TOOK PLACE AT STROOCK & STROOCK'S MIAMI OFFICES TUESDAY ABOUT 35 PEOPLE INCLUDING GENERAL PARTNERS OF PREMIUM SALES AND THEIR ATTORNEYS WERE PRESENT THE GRIM NEWS PREMIUM HAD SALES OF ABOUT 240 MILLION TO 300 MILLION A YEAR THE ACCOUNTANT TOLD THEM AND A LIQUIDATING VALUE OF ABOUT 68 MILLION TO 80 MILLION INVESTORS HAD POURED 515 MILLION INTO THE COMPANY REGULATORS SAY FURIOUS THE GROUP STORMED OUT SEVERAL HEADED STRAIGHT FOR THE LOCAL SEC OFFICE THE NEXT DAY THE COMPANY WAS PLACED IN TEMPORARY RECEIVERSHIP NEITHER MR MORRIS NOR MR THENEN WERE AVAILABLE FOR COMMENT THE LATTER'S ATTORNEY EDWARD SHOHAT SAYS SOME INVESTORS ARE TRYING TO SANDBAG PREMIUM SALES LEONARD H BLOOM ANOTHER ATTORNEY FOR MR THENEN SAYS HE CAN'T COMMENT ON SALES FIGURES AT THE COMPANY BECAUSE I DON'T KNOW WHAT INVESTORS WERE TOLD HE SAYS IT IS PROBABLY CORRECT THAT PREMIUM SALES HAD NO FINANCIAL STATEMENTS IN 1992 HE ALSO DOESN'T THINK THE COMPANY FILED TAXES THAT YEAR AND HE DOESN'T DISPUTE THE COMMENTS MADE AT TUESDAY'S BRIEFING TO THE GENERAL PARTNERS FINALLY MR BLOOM DECLINED TO COMMENT ON WHETHER THE ACTIVITIES AT THE COMPANY REPRESENTED A PONZI SCHEME OR WHETHER INVESTORS WERE SIMPLY GETTING BACK THEIR OWN MONEY THAT'S SOMETHING THAT HAS TO BE PROVEN IN THE COURTS HE SAYS MICHAEL MCCARTHY CONTRIBUTED TO THIS ARTICLE 9306140023 930614 MANAGEMENT LEARNING TO TURN THE OTHER SHOULDER BY BOB HAGERTY BRUSSELS ANYONE CAN TALK ABOUT CULTURAL DIFFERENCES FONS TROMPENAARS TRIES TO MAKE HIS STUDENTS FEEL THEM TO DO THAT THE DUTCH LEADER OF WORKSHOPS ON MULTICULTURAL MANAGEMENT TEACHES HIS STUDENTS MOSTLY EXECUTIVES TO PLAY A GAME INVENTED BY ONE OF HIS COLLEAGUES LJP BRUG THE OBJECT BUILDING TOWERS MADE OF PAPER MR TROMPENAARS A 39YEAROLD FORMER ROYAL DUTCH/SHELL EXECUTIVE DIVIDES A GROUP OF SEVERAL DOZEN SWEDISH MANAGERS INTO TWO GROUPS FOUR ARE DESIGNATED AS INTERNATIONAL EXPERTS IN BUILDING PAPER TOWERS EVERYONE ELSE BECOMES A NATIVE OF A MAKEBELIEVE VILLAGE CALLED DERDIA YOUR CULTURE LOVES TOWERS BUT DOESN'T KNOW HOW TO BUILD THEM MR TROMPENAARS TELLS THE DERDIANS IT'S A BIT LIKE THE BRITISH CAR INDUSTRY THE EXPERTS ARE SENT OUT OF THE ROOM TO LEARN TO MAKE PAPER TOWERS AND PREPARE TO PASS THAT SKILL ON TO DERDIA MEANWHILE MR TROMPENAARS INITIATES THE SWEDES INTO THE STRANGE CUSTOMS OF DERDIA DERDIANS' GREETINGS INVOLVE KISSING ONE ANOTHER ON THE SHOULDER HOLDING OUT A HAND TO SOMEONE MEANS PLEASE GO AWAY IF THEY DISAGREE DERDIANS SAY YES AND NOD THEIR HEADS VIGOROUSLY WHAT'S MORE DERDIAN WOMEN HAVE A TABOO AGAINST USING PAPER OR SCISSORS IN THE PRESENCE OF MEN WHILE MEN WOULD NEVER USE A PENCIL OR A RULER IN FRONT OF WOMEN THE SWEDES RESERVED A MOMENT AGO THROW THEMSELVES INTO THE TASK OF ACTING LIKE DERDIANS THEY MERRILY TAP ONE ANOTHER KISS SHOULDERS AND BRAY YESSSS SOON TWO EXPERTS ARE ALLOWED BACK INTO THE ROOM FOR A BRIEF STUDY OF DERDIAN CULTURE THE DERDIANS FLOCK TO THE EXPERTS AND GLEEFULLY KISS THEIR SHOULDERS THE EXPERTS TURN RED THEY SEEM LOST ALREADY WOULD YOU PLEASE SIT ASKS HANSOLAV FRIBERG A YOUNG EXPERT WHO BACK HOME IN SWEDEN WORKS FOR A COMPANY THAT MAKES FLOORING YESSSS THE DERDIANS SAY IN A CHORUS BUT THEY DON'T SIT DOWN WHO IS IN CHARGE HERE MR FRIBERG INQUIRES YESSSS THE DERDIANS REPLY MR FRIBERG LEAVES THE ROOM TO CONFER WITH HIS FELLOW EXPERTS THEY DIDN'T UNDERSTAND US HE TELLS THEM BUT FELLOW EXPERT HAKAN KALMERMO ISN'T ABOUT TO BE DETERRED BY STRANGE HABITS HE IS TAKING CHARGE AS HE BRISKLY PRACTICES MAKING A PAPER TOWER MR KALMERMO SAYS FIRMLY TO THE OTHER EXPERTS THE TARGET IS TO HAVE THEM PRODUCE ONE TOWER THE FOUR EXPERTS CARRY PAPER AND OTHER SUPPLIES TO THE ADJOINING ROOM NOW KNOWN AS DERDIA THEY BEGIN TO EXPLAIN THE PROCESS TO THE DERDIANS VERY SLOWLY AS IF SPEAKING TO SMALL CHILDREN WHEN ONE OF THE DERDIANS SHOWS HE UNDERSTANDS THE WORKINGS OF A SCISSORS MR KALMERMO EXCLAIMS GOOD BOY ALTHOUGH MR KALMERMO WORKS HARD AT MAKING HIMSELF CLEAR THE DERDIANS' CUSTOMS AND TABOOS OBSTRUCT PROGRESS THE MEN WON'T USE RULERS AS LONG AS WOMEN ARE AROUND BUT DON'T EXPLAIN THIS BEHAVIOR TO THE EXPERTS THE ANSWER TO EVERY QUESTION SEEMS TO BE YES AT THE END OF 30 MINUTES NO TOWER HAS BEEN COMPLETED THE GAME IS OVER NOW COMES THE SELFCRITICISM THEY TREATED US LIKE IDIOTS PROTESTS ONE OF THE DERDIANS THE LESSONS ARE CLEAR BUT MR TROMPENAARS DRIVES THEM HOME IF YOU DON'T FIGURE OUT BASICS OF A FOREIGN CULTURE YOU WON'T GET MUCH ACCOMPLISHED AND IF YOUR BIASES LEAD YOU TO THINK OF FOREIGN WAYS AS CHILDISH THE FOREIGNERS MAY WELL RESPOND BY ACTING CHILDISH STILL MR KALMERMO THE TAKECHARGE EXPERT THINKS HIS TEAM WAS ON THE RIGHT TRACK IF WE'D HAD ANOTHER HOUR HE SAYS I THINK WE WOULD HAVE HAD 15 TOWERS BUILT SEE RELATED STORY TRAINERS HELP EXPATRIATE EMPLOYEES BUILD BRIDGES TO DIFFERENT CULTURES WSJ JUNE 14 1993 9306140022 930614 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN FOR THE SECOND YEAR IN A ROW JAPANESE LAND PRICES FELL SHARPLY BUT THE NATIONAL LAND AGENCY SAID PRICES WERE STILL TOO HIGH MAKING HOME OWNERSHIP IMPOSSIBLE FOR MANY WAGE EARNERS CULMINATING A 17YEAR RUN OF INCREASES LAND PRICES SOARED IN THE 1980S IN A SPECULATIVE FRENZY BEFORE THE BOOM ENDED AND RECESSION SET IN IN THE YEAR ENDED MARCH 31 THE BIGGEST DROPS IN RESIDENTIAL LAND PRICES WERE IN CITIES 27 IN TOKYO AND 20 IN OSAKA NONRESIDENTIAL LAND PRICES IN TOKYO DROPPED 23 THE AVERAGE PRICE OF A NEW 755SQUAREFOOT CONDOMINIUM IN THE LATEST YEAR WAS 56 MILLION YEN 527575 OR 66 TIMES THE AVERAGE ANNUAL WAGE SHRINKING FROM A MULTIPLE OF 77 A YEAR EARLIER BUT STILL EXCEEDING THE GOVERNMENT TARGET OF 55 SEPARATELY THREE OF FOUR THINK TANKS AFFILIATED WITH JAPAN'S BIG BROKERAGE FIRMS PREDICTED A FOURTH CONSECUTIVE YEAR OF POOR RESULTS FOR MAJOR COMPANIES IN THE CURRENT YEAR WITH PRETAX PROFITS FALLING BETWEEN 54 AND 10 THE FOURTH RESEARCH INSTITUTE FORECAST A 28 RISE SRI LANKA LIFTED ITS DUTY ON TEA EXPORTS TO HELP THE AILING INDUSTRY TEA IS SRI LANKA'S BIGGEST FOREIGNEXCHANGE EARNER BRINGING IN 150 MILLION A YEAR PRODUCERS ALSO MAY EXPORT DIRECTLY TO OVERSEAS BUYERS WITHOUT GOING THROUGH THE COLOMBO TEA AUCTIONS ELIMINATING AN EXPENSE TO AID COMPETITIVE PRICING THE INDUSTRY WAS WOUNDED LAST YEAR WHEN DROUGHT DESTROYED THOUSANDS OF ACRES OF TEA PLANTATIONS AND PRODUCTION PLUNGED 41 TO 374 MILLION POUNDS FROM A YEAR EARLIER RUSSIA PLANS TO CLAMP DOWN ON THE PRODUCTION AND SALE OF ALCOHOLIC BEVERAGES TO BOOST TAX REVENUE AND PREVENT BOOTLEG POISONINGS UNDER A DECREE PRESIDENT BORIS YELTSIN IS EXPECTED TO SIGN SOON ALL DOMESTIC AND FOREIGN ALCOHOLIC BEVERAGES MUST GET A GOVERNMENT CERTIFICATE OF QUALITY TO PERMIT THEIR SALE RUSSIA FREED VODKA PRICES 13 MONTHS AGO BUT KEPT A PRODUCTION MONOPOLY EASILY EVADED STATE REVENUE FROM ALCOHOL WHICH IS CONSIDERABLE HAS DROPPED BECAUSE OF UNAUTHORIZED OUTPUT AND SOME ILLICIT LIQUOR IS ADULTERATED WITH DANGEROUS CHEMICALS WHICH REGULARLY CAUSE DEATHS THE DECREE ALSO WOULD CONTROL LIQUOR ADVERTISING GOVERNMENT CORRUPTION IN CHINA IS SPREADING THE CHINA DAILY SAID QUOTING THE DEPUTY PROCURATOR GENERAL LIANG GUOQING AS SAYING LAWS AND REGULATIONS HAVEN'T KEPT UP WITH A TRANSFORMING ECONOMY MR LIANG SAID CHINA HANDLED 13700 CASES OF CORRUPTION AND BRIBERY IN THIS YEAR'S FIRST FOUR MONTHS AND RECOVERED 158 MILLION YUAN 276 MILLION OF EMBEZZLED MONEY POLICE HAVE BEGUN AN ANTICORRUPTION CAMPAIGN TO QUELL PUBLIC ANGER ABOUT OFFICIALS' PRIVILEGES AND ABUSES OF POWER WORLDWIDE SALES OF THE FIVE LEADING GOLD BULLION COINS THE AUSTRALIAN KANGAROO NUGGET AUSTRIAN VIENNA PHILHARMONIC BRITISH BRITANNIA CANADIAN MAPLE LEAF AND US AMERICAN EAGLE IN APRIL AND MAY JUMPED 56 TO 270892 OUNCES FROM A YEAR EARLIER THE WORLD GOLD COUNCIL SAID MOST OF THE RISE CAME FROM STRONGER DEMAND IN NORTH AMERICA AND EUROPE WHERE SALES CLIMBED 68 TO 241012 OUNCES THE ACCELERATION FOLLOWED A 17 INCREASE IN GLOBAL COIN SALES IN THE FIRST QUARTER A UNION OF WESTERN GERMANY'S RETAIL WORKERS SAID IT WOULD CONTINUE WILDCAT STRIKES DESPITE A WAGE CONTRACT REACHED LAST WEEK THAT WAS EXPECTED TO SERVE AS A PILOT AGREEMENT THE PACT IN BADENWUERTTEMBERG STATE PROVIDES FOR A 33 PAY INCREASE RETROACTIVE TO APRIL 1 AND AN IDENTICAL RAISE A YEAR LATER BUT THE HANDEL BANKEN & VERSICHERUNGEN UNION WHICH VOWED TO BROADEN ITS WALKOUTS AND THE SEPARATE DEUTSCHE ANGESTELLTENGEWERKSCHAFT UNION HAVEN'T BEEN ABLE TO NAIL DOWN AN ACCORD FOR THE TOTAL OF TWO MILLION WORKERS IN THE REGION AND WERE SEEKING SEPARATE DEALS FOR EACH DISTRICT FRACTURING GERMAN LABOR TRADITION SOUTH KOREA UNVEILED MEASURES TO LIBERALIZE OIL PRICES AND ALLOW NEW ENTRANTS IN THE FINANCIALLY AILING REFINERY INDUSTRY WHICH IS MONOPOLIZED BY FIVE COMPANIES THE TRADE INDUSTRY AND ENERGY MINISTRY PROPOSAL PART OF THE 199397 ECONOMIC DEVELOPMENT PLAN NEXT YEAR WILL ALLOW THE MARKET TO SET RETAIL OIL PRICES ALSO REFINERS NO LONGER WILL HAVE TO GET GOVERNMENT APPROVAL TO EXPORT AND IMPORT OIL AND PRIVATE BUSINESSES WILL BE ALLOWED TO PARTICIPATE IN ELECTRICITYGENERATION PROJECTS JOINTVENTURE DEALS WILL BE ALLOWED WITH FOREIGN FIRMS WHICH WILL BE LIMITED TO 499 STAKES IN PROJECTS IN A BID TO BOOST INVESTMENT FROM ABROAD THE MINISTRY SAID IT WOULD BUILD A SEVEN MILLIONSQUAREFOOT COMPLEX FOR HIGHTECHNOLOGY INDUSTRIES HALF THE CENTER IN THE ASAN BAY AREA 60 MILES SOUTHWEST OF SEOUL WILL BE OFFERED FOR SALE TO FOREIGN INVESTORS AND HALF FOR LONGTERM DISCOUNTED LEASES RUSSIA APPLIED FOR MEMBERSHIP IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE A MULTINATIONAL GROUP THAT SETS OPENMARKET RULES TO PROMOTE GLOBAL ECONOMIC GROWTH NEGOTIATIONS COULD TAKE SEVERAL YEARS GERMANY'S EXPERIMENTAL MAGNETIC LEVITATION TRAIN WHICH GLIDES ABOVE GROUND ON A MAGNETIC FIELD SET A RECORD OF 270 MILES PER HOUR SURPASSING ITS PREVIOUS MARK OF 261 MPH FOR A CONVENTIONAL TRAIN THE FASTEST RECORDED SPEED IS 309 MPH ACHIEVED IN FRANCE IN 1990 9306140021 930614 THE OUTLOOK ECONOMY MAY BENEFIT FROM CLINTON'S WOES BY HENRY F MYERS NEW YORK THE REPEATED SPECTACLE OF DISARRAY IN THE WHITE HOUSE IS CLEARLY PLAYING A BIG ROLE IN PUSHING DOWN PRESIDENT CLINTON'S STANDING IN PUBLICOPINION POLLS IT ALSO MAY BE DEPRESSING CONSUMER CONFIDENCE BUT WILL IT DAMAGE THE US ECONOMY PROBABLY NOT IN FACT THE PRESIDENT'S PROBLEMS MAY LITTLE HINDER THE ECONOMY IN THE SHORT RUN AND MAY EVEN SERVE TO STRENGTHEN IT IN THE LONG RUN FOR ONE THING CONSUMER SURVEYS HAVE HISTORICALLY PROVED ONLY MODESTLY USEFUL AS A FORECASTING TOOL LAST MONTH A RENEWED DECLINE IN THE CONFERENCE BOARD'S CONSUMERCONFIDENCE INDEX AND A SHARP DROP IN ALL THREE MAJOR SURVEYS OF CONSUMER EXPECTATIONS DIDN'T STOP PEOPLE FROM BUYING 137 MORE CARS AND TRUCKS THAN IN MAY 1992 IN APRIL NEWHOME SALES SURGED 227 THE BIGGEST GAIN SINCE SEPTEMBER 1986 WITH SO MUCH MONEY SPENT ON BIGTICKET ITEMS IT ISN'T SURPRISING THAT MAY RETAIL SALES THOUGH UP DIDN'T RISE AS MUCH AS EXPECTED LIKE MANY BUSINESS ECONOMISTS DAVID D HALE OF KEMPER FINANCIAL SERVICES INC BLAMES THE SLUMP IN CONSUMER CONFIDENCE ON GROWING APPREHENSION IN BOTH THE HOUSEHOLD AND BUSINESS SECTORS ABOUT THE CLINTON FISCAL PROGRAM BUT CONSUMER SPENDING IS MORE AFFECTED AT LEAST IN THE SHORT RUN BY THE STATE OF PERSONAL BANK ACCOUNTS THAN BY THE STATE OF THE PRESIDENCY SIMILARLY BUSINESS CAPITAL OUTLAYS ARE MORE STRONGLY INFLUENCED BY PRODUCT DEMAND AND COMPETITIVE FORCES IN THE LONG RUN HOWEVER PRESIDENT CLINTON'S CURRENT DIFFICULTIES HIS PRATFALLS IN PICKING PERSONNEL THE UPROAR OVER BROKEN CAMPAIGN PROMISES HIS HESITANCY IN REACHING DECISIONS THE CONFLICTING CONFUSING STATEMENTS BY HIS SUBORDINATES EVEN THE HAIRCUT FLAP SEEM LIKELY TO UNDERMINE HIM POLITICALLY IN ADDITION THE ROUT OF A DEMOCRATIC SENATOR IN TEXAS SENT AN UNMISTAKABLE MESSAGE TO THE PRESIDENT'S SUPPORTERS IN CONGRESS THE UPSHOT ACCORDING TO A SLIGHTLY WHIMSICAL COMMENT BY MICHAEL EVANS OF EVANS ECONOMICS INC IN WASHINGTON WHATEVER FISCAL LEGISLATION EMERGES FROM CONGRESS THIS YEAR WILL BE FASHIONED BY CONGRESSIONAL LEADERS CLINTON WILL END UP JUST AN INNOCENT BYSTANDER THE PRESIDENT'S LEGISLATIVE PROGRAM HAS ALREADY GONE THROUGH THE WRINGER THE PLAN TO SPUR THE ECONOMY WITH AN EXTRA 16 BILLION OF QUICK SPENDING AND AN INVESTMENT TAX CREDIT HAS BEEN SHOT DOWN THE BTUBASED ENERGY TAX PLAN SEEMS MORIBUND THE PROPOSED INCREASE IN INCOME TAXES ISN'T SO LIKELY TO BE RETROACTIVE TO JAN 1 A SHARP INCREASE IN THE MINIMUM WAGE HAS APPARENTLY BEEN POSTPONED THE HEALTHCARE PLAN HAS SUFFERED ONE DELAY AFTER ANOTHER BUT HOWEVER DISCOMFORTING TO MR CLINTON THE WAY CONGRESS IS SHOWING A MIND AND CLOUT OF ITS OWN ISN'T NECESSARILY BAD FOR THE US ECONOMY THE MORE THE PRESIDENT MACHINEGUNS HIMSELF IN THE FOOT THE LESS LIKELY IS HE TO LEAD A MARCH INTO AN ECONOMIC SWAMP IN FACT CONGRESS IS MODERATING A FISCAL PROGRAM THAT WITH THE BIGGEST TAX INCREASE IN HISTORY AND LITTLE REDUCTION IN FEDERAL SPENDING MANY ECONOMISTS VIEWED AS A RECIPE FOR STAGFLATION NOW WHAT MIGHT WELL EMERGE FROM THE POLITICAL TURMOIL MAY BE A REASONABLY SALUTARY FISCAL PROGRAM THE COUNTRY COULD END UP WITH THE BEST OF THE CLINTON IDEAS A START TOWARD REDUCING THE BUDGET DEFICITS THROUGH SOMEWHAT SMALLER TAX INCREASES AND SIGNIFICANTLY LARGER SPENDING CUTS THAN THE PRESIDENT PROPOSED A MODERATE RISE IN TRANSPORTATIONFUEL TAXES HIGHER TOBACCO AND ALCOHOL TAXES A TONEDDOWN BUT USEFUL PROGRAM TO CURB THE DEVASTATING SPIRAL IN HEALTHCARE COSTS AND PERHAPS EVEN SOME MODEST MOVES TO IMPROVE THE WELFARE SYSTEM AND GET THE COSTS OF OTHER SOCIAL PROGRAMS UNDER CONTROL AT THE SAME TIME SOME CLINTON PROPOSALS THAT WOULD VASTLY EXPAND THE ROLE OF THE FEDERAL GOVERNMENT AT THE COST OF BUSINESS EXPANSION AND JOB CREATION SEEM SURE TO FALL AWAY IT ALREADY HAS BECOME APPARENT THAT PLANS FOR A LOT MORE FEDERAL REGULATION AND MANDATED INCREASES IN BUSINESS COSTS WILL PROBABLY FACE HEAVIER GOING IN CONGRESS THAN APPEARED LIKELY JUST A FEW MONTHS AGO AS THE THREAT OF NEW IMPEDIMENTS WANES THE ECONOMY SHOULD BENEFIT IT'S NO ACCIDENT THAT THE GRIDLOCK IN WASHINGTON SO RECENTLY DERIDED IS SUDDENLY BEING HAILED BY SOME ECONOMISTS AS YOUR FRIEND AS BULLISH FOR THE ECONOMY AND AS A PRIME EXAMPLE OF THE CONSTITUTION'S LAUDABLE SYSTEM OF CHECKS AND BALANCES THE PRESIDENT HIMSELF MR HALE OBSERVES HAS BECOME AWARE THAT HIS POLITICAL CAPITAL HAS BEEN ERODED AND THAT HE MUST REEMPHASIZE THE GROWTHORIENTED NEW DEMOCRAT' THEMES OF 1992 NOT THE TRADITIONAL DEMOCRATIC TAXANDSPEND THEMES WHICH HAVE DOMINATED HIS AGENDA SINCE FEBRUARY OF COURSE THE BENEFICIAL MODIFICATIONS IN THE PRESIDENT'S PROGRAM DON'T GUARANTEE THAT NEW POLITICALLY GENERATED THREATS CAN'T CROP UP IF CONFIDENCE IN MR CLINTON CONTINUES TO GO DOWN THE TUBE INTEREST RATES COULD EVENTUALLY RISE HIGH ENOUGH TO CHOKE OFF THE ANEMIC ECONOMIC EXPANSION CONVERSELY IF THE ECONOMY WEAKENS AS THE 1994 AND ESPECIALLY THE 1996 ELECTIONS DRAW NEAR THE ADMINISTRATION AND ITS ALLIES IN CONGRESS MIGHT BE TEMPTED TO PRESSURE THE FEDERAL RESERVE TO DRIVE DOWN INTEREST RATES AT THE COST OF RESURGENT INFLATION LATER ON RIGHT NOW THE PRESIDENT SUPPOSEDLY IS STILL HOPING THAT CONGRESS WILL ENACT MUCH OF HIS PROGRAM HOWEVER CONGRESS MAY SAVE THE ECONOMY A LOT OF GRIEF BY NOT ENACTING MUCH OF IT AND THAT REJECTION MIGHT EVEN RESCUE MR CLINTON'S CHANCES FOR REELECTION A WORLDCLASS PARADOX NO 9306140020 930614 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ADVANCE CIRCUITS INC AN OFFERING OF 1380000 COMMON SHARES ALAMCO INC AN OFFERING OF TWO MILLION COMMON SHARES BRITISH TELECOMMUNICATIONS PLC AN OFFERING OF 5 BILLION OF SHARES VIA SG WARBURG SECURITIES LTD PENNSYLVANIA ELECTRIC CO A SHELF OFFERING OF UP TO 450 MILLION OF FIRST MORTGAGE BONDS MEDIUM TERM NOTES AND CUMULATIVE PREFERRED STOCK PRICE REIT INC AN OFFERING OF 43 MILLION SHARES OF A NEW SERIES B COMMON STOCK ROADMASTER INDUSTRIES INC AN OFFERING OF 35 MILLION OF CONVERTIBLE DEBENTURES WHEELINGPITTSBURGH CORP AN OFFERING OF TWO MILLION SHARES OF SERIES A CONVERTIBLE PREFERRED STOCK 9306140019 930614 PRESIDENT'S CALL FOR SHARED SACRIFICE' TURNS INTO SCRAMBLE AMONG LOBBYISTS BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON BY ABANDONING PRESIDENT CLINTON'S ENERGY TAX THE PRESIDENT AND SENATE DEMOCRATS HAVE TURNED HIS CALL FOR SHARED SACRIFICE INTO A MAD SCRAMBLE BY INTEREST GROUPS TO LOOK OUT FOR THEMSELVES FOR A SECOND WEEK THE DEMOCRATS ON THE TAXWRITING FINANCE COMMITTEE WILL STRUGGLE TO PLUG THE 70 BILLION HOLE THEY'VE BLOWN IN MR CLINTON'S FIVEYEAR PROGRAM TO CUT THE DEFICIT NEARLY 500 BILLION THEIR ACTIONS LAST WEEK DELIGHTED CONSERVATIVE OILSTATE SENATORS OIL COMPANIES UTILITIES AND MANUFACTURERS BUT AT THE SAME TIME THE TWO CHIEF ALTERNATIVES A HIGHER TRANSPORTATIONFUELS TAX AND CUTS IN MEDICARE AND MEDICAID HAVE CREATED AN ARMY OF NEW OPPOSITION LIBERAL LAWMAKERS AND OTHER FORMIDABLE LOBBYING GROUPS HAVE CONCLUDED AFTER WATCHING THE OIL INDUSTRY'S SUCCESS THAT IT PAYS TO FIGHT AS A RESULT THE GENERAL SUPPORT FOR THE PRESIDENT'S DEFICITCUTTING EFFORT IS IN DANGER OF UNRAVELING WE DIDN'T SOLVE ANYTHING BECAUSE NOW OTHER INTEREST GROUPS ARE COMING OUT OF THE WOODWORK SAID SEN THOMAS DASCHLE D SD BUT I AM CONFIDENT WE'RE CLOSER THE SPECTACLE IN THE SENATE ILLUSTRATES THE HIGH PRICE A PRESIDENT PAYS ONCE THE PERCEPTION TAKES HOLD THAT HE CAN BE PUSHED AROUND ONETIME ALLIES CAN RAPIDLY BECOME OPPONENTS AND FASHIONING A COMPROMISE CAN BECOME EXTREMELY DIFFICULT THE POWERFUL LOBBY FOR THE ELDERLY IS DRAWING THE LINE AT DEEPER CUTS IN MEDICARE YOU CAN'T BE SEEN BY YOUR MEMBERS AS WILLING TO SACRIFICE THEIR INTERESTS FOR DEFICIT REDUCTION WHEN OTHER SECTORS OF THE COUNTRY AREN'T DOING THE SAME SAID JOHN ROTHER CHIEF LOBBYIST FOR THE AMERICAN ASSOCIATION OF RETIRED PERSONS MEANWHILE LIBERALS IN THE HOUSE AND SENATE HAVE WARNED IN TELEVISION INTERVIEWS AND A LETTER TO THE FINANCE PANEL THAT THEY WON'T ACCEPT THE DEEP MEDICARE AND MEDICAID CUTS THAT THE COMMITTEE IS SAID TO BE CONSIDERING THE TRUCKING AND AVIATION INDUSTRIES ARE SCREAMING THAT A TRANSPORTATIONFUELS TAX IS UNFAIR AND MR CLINTON'S OWN TRANSPORTATION SECRETARY FEDERICO PENA SHOCKED THE WHITE HOUSE BY CALLING THE WASHINGTON POST TO SAY HE AGREED SENATE DEMOCRATIC LEADER GEORGE MITCHELL AND TREASURY SECRETARY LLOYD BENTSEN INSIST THE SENATE WILL PASS A BILL THAT CUTS THE DEFICIT BY 500 BILLION OVER FIVE YEARS WHAT YOU HAVE TO DO IS KEEP YOUR EYES ON THE TARGET AND NOT ON THE GRANDSTANDS MR BENTSEN SAID LAST WEEK BUT THE FAILURE OF THE FINANCE COMMITTEE DEMOCRATS TO AGREE IS RAISING DOUBTS ABOUT CONGRESS'S ABILITY TO MEET THAT OBJECTIVE THEY WILL MEET AGAIN TOMORROW BEHIND CLOSED DOORS WITH A DEADLINE TO COMPLETE WORK BY WEEK'S END THE FULL SENATE IS TO BEGIN DEBATE THIS MONTH ULTIMATELY HOWEVER THE DEFICITREDUCTION PACKAGE WILL BE WRITTEN IN A HOUSESENATE CONFERENCE COMMITTEE THE GAP THAT THE SENATORS MUST MAKE UP ACTUALLY IS LARGER THAN THE 70 BILLION THAT WOULD HAVE COME IN FROM MR CLINTON'S BROADBASED LEVY ON ENERGY CONSUMPTION AS MEASURED IN BRITISH THERMAL UNITS THE SHORTFALL IS ABOUT 15 BILLION LARGER BECAUSE THE PANEL TENTATIVELY AGREED TO DELAY MR CLINTON'S PROPOSED INCOMETAX INCREASE ON THE WEALTHY AND TO SUBJECT FEWER SOCIAL SECURITY RECIPIENTS TO A PROVISION INCREASING THE TAXABLE PORTION OF THEIR BENEFITS THE DEMOCRATS ON THE FINANCE PANEL REPUBLICANS AREN'T PARTICIPATING IN THE DEFICITREDUCTION EFFORT JUST AS IN THE HOUSE ARE LEANING STRONGLY TOWARD A PROPOSAL TO RAISE ABOUT 40 BILLION OVER FIVE YEARS WITH A 73CENTAGALLON TAX INCREASE ON GASOLINE AND OTHER TRANSPORTATION FUELS THE CURRENT FEDERAL GASOLINE TAX IS 141 CENTS A GALLON THE TRANSPORTATION TAX ON TRAVEL BY AUTOMOBILES BUSES TRAINS PLANES AND BOATS IS THE IDEA OF SEN JOHN BREAUX D LA WHO OPPOSED THE BTU TAX AND OKLAHOMA SEN DAVID BOREN ANOTHER OILSTATE SWING VOTE ON THE PANEL WHOSE FLATOUT OPPOSITION TO THE BTU TAX THREATENED MR CLINTON'S ENTIRE PROGRAM HAS STOPPED SHORT OF AN ENDORSEMENT BUT THE TRANSPORTATIONFUELS TAX HAS AROUSED DEMOCRATIC SEN MAX BAUCUS OF MONTANA WHOSE OPPOSITION IS TYPICAL OF THOSE FROM LARGE RURAL STATES WHERE RESIDENTS DRIVE LONG DISTANCES ON THE FINANCE PANEL WITH ITS 119 SPLIT BETWEEN DEMOCRATS AND REPUBLICANS JUST ONE DEMOCRAT CAN DOOM THE BILL BY LIMITING THE INCREASE TO 73 CENTS A GALLON WHICH IS JUST UNDER THE AMOUNT THAT WOULD ULTIMATELY HAVE RESULTED FROM MR CLINTON'S LEVY THEY DEFUSE OPPOSITION FROM SOME QUARTERS WHERE IT MIGHT HAVE BEEN EXPECTED THE RAILROAD INDUSTRY FOR ONE PREFERS THE FUELS TAX BUT THE AVIATION AND TRUCKING INDUSTRIES SAY THE TAX WOULD HIT THEM HARDER IN THE SHORT RUN BECAUSE IT WOULD TAKE FULL EFFECT IMMEDIATELY WHEREAS THE BTU TAX WOULD HAVE BEEN PHASED IN THE LAWMAKERS SUPPORTING THE FUELS TAX CITE ONE MAJOR ADVANTAGE THEY NEEDN'T DEBATE ALL OF THE INDUSTRY EXEMPTIONS THAT WERE SOUGHT FOR THE BTU TAX THE FUELSTAX INCREASE WOULD BE LINKED TO A CURRENT LAW THAT WOULD IN EFFECT AUTOMATICALLY EXEMPT FUELS USED FOR STATE AND LOCAL GOVERNMENTS FISHERIES INTERNATIONAL AVIATION AND FARMS SHOULD A FUELSTAX INCREASE PASS IN A SENATE BILL IT STILL FACES A BIG HURDLE IN THE HOUSE BOTH HOUSE SPEAKER THOMAS FOLEY D WASH AND HOUSE WAYS AND MEANS COMMITTEE CHAIRMAN DAN ROSTENKOWSKI D ILL PERSONALLY FAVOR A HIGHER GASOLINE TAX TO REDUCE THE DEFICIT BUT BOTH CONCEDE THAT MOST HOUSE DEMOCRATS DON'T AND EVEN IF THE FUEL TAX PASSES IT WOULD RAISE 30 BILLION LESS THAN THE BTU TAX TO MAKE UP THE DIFFERENCE SENS BREAUX AND BOREN HAVE TARGETED MEDICARE AND MEDICAID WHICH TOGETHER WOULD BE CUT MORE THAN 50 BILLION OVER FIVE YEARS UNDER MR CLINTON'S PLAN FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY HAS SAID THE ADDITIONAL HEALTH CUTS COULD BE AS GREAT AS 35 BILLION WITH WEST VIRGINIA SEN JAY ROCKEFELLER MAKING A STAND AGAINST MUCH DEEPER CUTS IN THE COMMITTEE LIBERALS POISED TO PROTECT THE PROGRAMS ON THE FLOOR AND THE POWERFUL AARP ROUSED TO OPPOSITION THE SENATORS CAN'T RELY ON HEALTHPROGRAM SAVINGS TO MEET THEIR DEFICITCUTTING TARGET THAT IN TURN HAS INCREASED PRESSURE TO HIT BUSINESSES FOR MORE TAXES SEVERAL SENATORS HAVE SUGGESTED RAISING THE CORPORATE TAX RATE TO 36 FROM 34 AS MR CLINTON INITIALLY PROPOSED THE HOUSE WITH HIS CONSENT TRIMMED THAT TO 35 IN A BID TO WIN BUSINESS BACKING FOR THE BILL A SINGLE PERCENTAGEPOINT INCREASE WOULD RAISE ABOUT 15 BILLION OVER FIVE YEARS MAKING IT A COMPELLING OPTION BUT REP ROSTENKOWSKI AND SECRETARY BENTSEN IN PARTICULAR ARE COMMITTED TO THE 35 RATE HAVING GIVEN THEIR WORD TO CORPORATE LEADERS ANOTHER FINANCE PANEL MEMBER SEN BILL BRADLEY D NJ WANTS TO DROP BUSINESS TAX INCENTIVES BUT SUCH PROVISIONS ARE STAPLES OF MR CLINTON'S EFFORT TO STIMULATE THE ECONOMY AND THEIR ELIMINATION WOULD INVITE OPPOSITION FROM THE WHITE HOUSE BUSINESS LOBBIES AND CONSERVATIVE LAWMAKERS SHOULD THE SENATE FAIL TO AGREE THERE IS ANOTHER OPTION CUT BACK THE 500 BILLION DEFICITREDUCTION GOAL BUT MR CLINTON IS INSISTING ON THAT AMOUNT FOR DEMOCRATS TO MISS THAT GOAL WOULD BE DIFFICULT PROCEDURALLY REQUIRING A VOTE ON A SMALLER TOTAL AND DEVASTATING POLITICALLY GIVEN THE PARTY'S PROMISE TO END GRIDLOCK DAVID WESSEL CONTRIBUTED TO THIS ARTICLE 9306140018 930614 VIACOM UNIT SETS REDEMPTION NEW YORK VIACOM INTERNATIONAL INC SAID IT WILL REDEEM ITS OUTSTANDING 1180 SENIOR SUBORDINATED NOTES DUE 1998 ON JULY 15 THE NOTES WILL BE REDEEMED AT 10337 OF THE PRINCIPAL AMOUNT PLUS ACCRUED INTEREST ABOUT 298 MILLION OF THE NOTES IS OUTSTANDING VIACOM INTERNATIONAL A COMMUNICATIONS AND ENTERTAINMENT COMPANY IS A SUBSIDIARY OF VIACOM INC 9306140017 930614 A STEP BACKWARD FOR HUMAN RIGHTS BY ELENA BONNER A WORLD CONFERENCE ON HUMAN RIGHTS ORGANIZED BY THE UNITED NATIONS TAKES PLACE IN VIENNA THIS WEEK THE PROTECTION OF HUMAN RIGHTS PLAYS A MUCH GREATER ROLE IN INTERNATIONAL AFFAIRS OR AT LEAST IN INTERNATIONAL RHETORIC NOW THAN IT DID IN 1968 WHEN THE ONLY OTHER WORLD CONFERENCE WAS HELD IN TEHRAN BUT INCREASED ATTENTION HASN'T NOTICEABLY REDUCED HUMANRIGHTS VIOLATIONS AND HAS EVEN CREATED NEW TENSIONS SINCE THE FORTHCOMING WORLD CONFERENCE SEEMS LIKELY TO PLAY A CRITICAL ROLE IN ESTABLISHING THE HUMANRIGHTS AGENDA FOR THE NEXT DECADE IT'S WORTHWHILE TO EXAMINE THE DECLARATIONS ADOPTED BY OFFICIAL PREPARATORY MEETINGS ESPECIALLY THE ONE HELD RECENTLY IN BANGKOK IT'S STILL NOT TOO LATE FOR PUBLIC OPINION TO REMIND GOVERNMENTS THAT THE WORLD CONFERENCE SHOULD ADHERE TO THE PRINCIPLES OF THE UNIVERSAL DECLARATION OF HUMAN RIGHTS THIS IS PARTICULARLY IMPORTANT FOR RUSSIA AND THE OTHER SUCCESSOR STATES OF THE SOVIET UNION THAT ARE IN THE PROCESS OF ADOPTING CONSTITUTIONS REFERRING TO THE UNIVERSAL DECLARATION CULTURAL RELATIVISM IS THE WORST PROBLEM THE ADVANCEMENT OF CULTURAL DIFFERENCES AS A JUSTIFICATION BEHIND WHICH TO HIDE HUMANRIGHTS OFFENSES THE BANGKOK DECLARATION WHICH EXPRESSES THE VIEWS OF CHINA AND OTHER ASIAN COUNTRIES IS ESPECIALLY ALARMING ALTHOUGH SOMETIMES IT IS HARD TO TELL WHAT THE AUTHORS MEAN THE DECLARATION'S 30 ARTICLES ARE WRITTEN IN THE USUAL MUSHY BUREAUCRATESE THE DECLARATION SEEMS TO REJECT SUCH FUNDAMENTAL PRINCIPLES AS THE GENERALITY OF HUMAN RIGHTS AND THE IMPERMISSIBILITY OF HIDING FROM INTERNATIONAL SCRUTINY BEHIND THE SHIELD OF NATIONAL SOVEREIGNTY FOR EXAMPLE ARTICLE 7 OF THE BANGKOK DECLARATION REAFFIRMS THE UNIVERSALITY OBJECTIVITY AND NONSELECTIVITY OF ALL HUMAN RIGHTS AND THE NEED TO AVOID THE APPLICATION OF DOUBLE STANDARDS ARTICLE 8 HOWEVER INSISTS THAT HUMAN RIGHTS MUST BE CONSIDERED IN THE CONTEXT OF A DYNAMIC AND EVOLVING PROCESS OF INTERNATIONAL NORMSETTING BEARING IN MIND THE SIGNIFICANCE OF NATIONAL AND REGIONAL PARTICULARITIES AND VARIOUS HISTORICAL CULTURAL AND RELIGIOUS BACKGROUNDS ARTICLE 17 RECOGNIZES TOO THE RECENTLY DISCOVERED RIGHT TO DEVELOPMENT IT IS CLASSED AS AN INALIENABLE RIGHT WHICH MUST BE REALIZED THROUGH INTERNATIONAL COOPERATION RESPECT FOR FUNDAMENTAL HUMAN RIGHTS THE ESTABLISHMENT OF A MONITORING MECHANISM AND THE CREATION OF ESSENTIAL INTERNATIONAL CONDITIONS FOR THE REALIZATION OF SUCH RIGHTS ARTICLE 4 EVEN SEEMS TO GIVE THE RIGHT TO DEVELOPMENT PRIORITY OVER CONVENTIONAL CIVIL AND POLITICAL RIGHTS BY CONDEMNING ANY ATTEMPT TO USE HUMAN RIGHTS AS A CONDITIONALITY FOR EXTENDING DEVELOPMENT ASSISTANCE IN PLAIN LANGUAGE ECONOMIC RIGHTS ARE MORE IMPORTANT THAN INDIVIDUAL FREEDOM THE AGENDA ALSO CONTINUES A LONG TRADITION IN THE HUMANRIGHTS WORLD OF PUTTING PARTICULAR POLITICAL AGENDAS BEFORE UNIVERSAL RIGHTS ARTICLE 21 STATES THAT TERRORISM MUST BE UNEQUIVOCALLY CONDEMNED BUT THE SAME ARTICLE ENDORSES THE LEGITIMATE STRUGGLE OF PEOPLES UNDER COLONIAL OR ALIEN DOMINATION OR FOREIGN OCCUPATION ARTICLE 16 FOCUSES ON THE STATE OF ISRAEL IT SPECIFICALLY SUPPORTS THE LEGITIMATE STRUGGLE OF THE PALESTINIAN PEOPLE AND CONDEMNS VIOLATIONS OF HUMAN RIGHTS IN THE PALESTINIAN SYRIAN GOLAN AND OTHER OCCUPIED ARAB TERRITORIES INCLUDING JERUSALEM BUT THIS CONCERN FOR THE RIGHT OF SELFDETERMINATION IS SELECTIVE ARTICLE 13 WARNS THAT IT MUST NOT BE USED TO UNDERMINE THE TERRITORIAL INTEGRITY NATIONAL SOVEREIGNTY AND POLITICAL INDEPENDENCE OF STATES AND THE DECLARATION NOWHERE MENTIONS TWO ASIAN PLACES CLOSER THAN ISRAEL TIBET AND EAST TIMOR EVEN THOUGH THEY FIT THE CATEGORY OF NATIONS UNDER ALIEN DOMINATION OR FOREIGN OCCUPATION THE DECLARATION DOESN'T MENTION DIRECTLY OR INDIRECTLY NOBEL LAUREATE AUNG SAN SUI KYI'S FOURYEAR HOUSE ARREST IN BURMA OR CHINA'S BLOODY SUPPRESSION OF THE TIANANMEN SQUARE STUDENT DEMONSTRATION THE MAIN THRUST OF THE DECLARATION APPEARS TO BE AN ATTEMPT TO USE HUMAN RIGHTS AS A TOOL TO EXTRACT ADDITIONAL AID FROM RICH COUNTRIES WHILE IGNORING THE REGION'S SERIOUS HUMANRIGHTS PROBLEMS THE DRAFT VERSION OF THE VIENNA CONFERENCE FINAL DOCUMENT IS A SELFCONTRADICTORY MESS BUT IF THE VIENNA CONFERENCE ADOPTS A FINAL DOCUMENT BASED ON THE BANGKOK DECLARATION IT WILL BE A BIG STEP BACKWARD IT WILL BE AS SHAMEFUL AS THE RESOLUTION EQUATING ZIONISM WITH RACISM WHICH WAS ADOPTED BY THE UNITED NATIONS GENERAL ASSEMBLY IN 1975 WITH THE BLESSING OF THE SOVIET UNION THE UN'S MEMBERS MADE PROGRESS WHEN THEY DISSOLVED THAT RESOLUTION IN 1991 REAFFIRMING SUCH IDEAS AT VIENNA WILL DESTROY THE OPPORTUNITY FOR INTERNATIONAL COOPERATION IN THE DEFENSE OF HUMAN RIGHTS CREATED BY THE SOVIET UNION'S DISSOLUTION MRS BONNER IS THE WIDOW OF DISSIDENT ANDREI SAKHAROV HER BOOK MOTHERS AND DAUGHTERS IS OUT THIS MONTH IN PAPERBACK VINTAGE BOOKS 9306140016 930614 EPIC AGAIN EXTENDS OFFER DALLAS EPIC HEALTHCARE GROUP INC SAID IT EXTENDED UNTIL THURSDAY ITS OFFER TO BUY ALL ITS 115 MILLION PRINCIPAL AMOUNT OUTSTANDING 15 SENIOR SUBORDINATED NOTES DUE 2001 THE OFFER PART OF EPIC'S DEBT REFINANCING IS PRICED AT 108625 PER 1000 PRINCIPAL AMOUNT THIS IS THE SECOND TIME THE COMPANY HAS EXTENDED THE DEADLINE THE EMPLOYEEOWNED HOSPITAL COMPANY SAID 747 MILLION PRINCIPAL AMOUNT OF THE NOTES HAVE BEEN TENDERED SO FAR THE INITIAL EXPIRATION DATE WAS MAY 14 AND THE OFFER HAD BEEN EXTENDED TO LAST FRIDAY 9306140015 930614 PENNSYLVANIA'S GOV CASEY FACES DOUBLE TRANSPLANT PITTSBURGH AP PENNSYLVANIA GOV ROBERT CASEY WILL UNDERGO A HEARTLIVER TRANSPLANT IN HOPES OF CURING A HEREDITARY DISEASE DOCTORS SAID THE 61YEAROLD GOVERNOR SAID HE AND HIS FAMILY AGREED TO THE DOUBLE TRANSPLANT AFTER DOCTORS CONCLUDED THAT HIS HEART WASN'T STRONG ENOUGH TO WITHSTAND A LIVER TRANSPLANT MR CASEY SAID LT GOV MARK SINGEL WOULD TAKE OVER HIS DUTIES DURING HIS SURGERY AND RECOVERY THE GOVERNOR WHO HAS 1 1/2 YEARS REMAINING ON HIS TERM SAID HE WOULD CONTINUE TO FULFILL HIS DUTIES FROM HIS HOSPITAL ROOM UNTIL THE OPERATION DOCTORS SAID HE WOULD REMAIN HOSPITALIZED AND COULD HAVE THE OPERATION WITHIN FOUR TO SIX WEEKS GOV CASEY WAS DIAGNOSED TWO YEARS AGO WITH A HEREDITARY DISEASE AMYLOIDOSIS IT HAS CAUSED HIS LIVER TO PRODUCE AN ABNORMAL PROTEIN THAT HAS BUILT UP IN THE WALLS OF HIS HEART 9306140014 930602 CMS ENERGY BOOSTS DIVIDEND PAYOUT 50 DEARBORN MICH CMS ENERGY CORP RAISED ITS QUARTERLY DIVIDEND 50 AND SAID IT EXPECTS FUTURE DIVIDEND GROWTH TO OUTPACE THE AVERAGE FOR UTILITIES CMS CITED THE POSITIVE IMPACT FROM A STATE REGULATORY RULING THAT ALLOWS THE COMPANY'S UTILITY UNIT TO BUY ENERGY FROM ITS MIDLAND COGENERATION VENTURE THE INCREASE ANNOUNCED FRIDAY RAISES CMS'S DIVIDEND ON COMMON STOCK TO 18 CENTS A SHARE FROM 12 CENTS THE COMPANY DIDN'T IMMEDIATELY SET PAY OR RECORD DATES FOR THE DIVIDEND BUT SAID IT WILL BE EFFECTIVE WITH THE NEXT QUARTERLY DIVIDEND PAYMENT IN AUGUST 1993 A CMS SPOKESMAN SAID A MARCH RULING BY THE MICHIGAN PUBLIC SERVICE COMMISSION ALLOWS CONSUMERS POWER CO ITS UTILITY UNIT TO BUY ENERGY FROM ITS 49OWNED MIDLAND PLANT WITHOUT HAVING TO TAKE FUTURE CHARGES AGAINST EARNINGS THE RULING SETTLED A DISPUTE OVER WHETHER CONSUMERS POWER WAS PAYING TOO MUCH FOR POWER FROM THE MIDLAND VENTURE CMS CHAIRMAN WILLIAM T MCCORMICK SAID THE COMPANY'S FUTURE DIVIDEND GROWTH SHOULD OUTPACE THE INDUSTRY AS ITS PAYOUT CATCHES UP WITH THE INDUSTRY AVERAGE A CMS SPOKESMAN SAID THE AVERAGE UTILITY COMPANY IS PAYING OUT BETWEEN 4 AND 5 OF ITS EARNINGS IN THE FORM OF DIVIDENDS WHILE CMS CURRENTLY PAYS OUT ABOUT 3 FOR THE PAST THREE YEARS CMS HAS REPORTED LOSSES DUE TO WRITEDOWNS TIED TO THE MIDLAND PLANT A FACILITY IT HAD ORIGINALLY PLANNED TO USE AS A NUCLEARPOWERED PLANT IN THE MOST RECENT FIRST QUARTER CMS REPORTED NET INCOME OF 719 MILLION OR 90 CENTS A SHARE UP FROM 509 MILLION OR 64 CENTS A SHARE A YEAR EARLIER CMS ENERGY CORP OF DEARBORN MICH SAID IT IS CURRENTLY PAYING A QUARTERLY DIVIDEND THAT IS EQUIVALENT TO A YIELD OF ABOUT 3 THAT IS LOWER THAN THE UTILITY INDUSTRY'S AVERAGE WHICH RANGES FROM 4 TO 5 THE COMPANY SAID A JUNE 2 ARTICLE MISSTATED THE FIGURES AS DIVIDEND PAYOUT RATIOS 9306140013 930614 MANY CORPORATE TREASURERS STILL PREFER SHORTTERM DEBT OVER THE BOND MARKET BY LESLIE SCISM STAFF REPORTER OF THE WALL STREET JOURNAL ALTHOUGH CORPORATIONS TAPPED THE BOND MARKET FOR MORE THAN 85 BILLION LAST WEEK MANY CORPORATE TREASURERS SAY THEY'RE BETTER OFF SITTING ON RECORD AMOUNTS OF SHORTTERM FLOATINGRATE DEBT THE SAVINGS ARE SO GREAT THEY'RE WILLING TO GAMBLE THAT ANY FURTHER RISE IN RATES WON'T BE TOO SUDDEN OR TOO SHARP BEFORE THEY STILL HAVE A CHANCE TO LOCK IN LONGTERM FUNDING TREASURERS AND ADVISERS SAY WHILE LONGTERM INTEREST RATES ARE VERY ATTRACTIVE ON A HISTORICAL BASIS SHORTTERM RATES ARE EVEN MORE ATTRACTIVE SAYS GILLETTE CO'S TREASURER LLOYD SWAIM GILLETTE HAS AN UNUSUALLY LARGE 70 OF ITS 13 BILLION IN DEBT SET AT FLOATING RATES HE SAYS WITH LESSENTICING SHORTTERM RATES GILLETTE WOULD PROBABLY HAVE 50 OF ITS DEBT AT FLOATING RATES HE SAYS INDEED DESPITE SOME NARROWING IN RECENT WEEKS THE SPREAD BETWEEN SHORTTERM AND LONGTERM RATES KNOWN AS THE YIELD CURVE REMAINS EXTRAORDINARILY WIDE WHILE A 30YEAR TREASURY BOND FRIDAY CARRIED A 680 YIELD A THREEMONTH TBILL WAS AT 311 A DIFFERENCE OF 369 POINTS IF TREASURERS GROW FEARFUL THAT A BIG UPWARD MOVE IN RATES IS COMING BECAUSE INFLATION IS HEATING UP THEY WILL RUSH TO REFINANCE VARIABLE DEBT AND THEIR ABOVEMARKETRATE CALLABLE DEBT WITH LONGTERM FIXEDRATE BONDS BUT INVESTMENT BANKERS SAY MUCH OF THE 85 BILLION RAISED LAST WEEK WAS NOT INFLATIONDRIVEN SOME OF IT HAS BEEN IN THE PIPELINE FOR MONTHS NOBODY'S PANICKING AND SAYING IT'S TIME TO DO IT NOW SAYS GRANT KVALHEIM HEAD OF THE CAPITAL MARKETS DESK AT MERRILL LYNCH & CO MOST TREASURERS WERE WAITING FOR FRIDAY'S GOVERNMENT REPORT ON PRODUCER PRICES AND TOMORROW'S REPORT ON CONSUMER PRICES MR KVALHEIM AND OTHERS SAY THEY BELIEVE THAT US REPORTS LAST MONTH SHOWING INFLATION WERE ABERRATIONS PARTICULARLY THE STEEP 43 ANNUAL INFLATION RATE IN THE APRIL CONSUMER PRICE INDEX THE TREASURERS WERE PARTLY PROVEN RIGHT WITH FRIDAY'S PRODUCER PRICE INDEX WHICH SHOWED PRICES AT THE FINISHED LEVEL WERE UNCHANGED IN MAY WHILE THE CORE RATE WHICH EXCLUDES VOLATILE FOOD AND ENERGY PRICES GREW A MODERATE 02 WE DON'T THINK INFLATION IS A BIG DEAL GILLETTE'S MR SWAIM SAYS WE DON'T SEE THE ECONOMY MOVING AHEAD VIGOROUSLY ENOUGH TO CREATE INFLATIONARY PRESSURES INVESTMENT BANKERS SAY CORPORATIONS ARE NOT LINING UP FOR BOND DEALS BECAUSE TREASURERS ARE SAYING THEY CAN SAVE ANYWHERE FROM PENNIES TO A DIME OR MORE A SHARE THIS YEAR BY HEAVILY USING SHORTTERM RATES THEY SAY LONGTERM RATES WOULD HAVE TO JUMP AT LEAST ONE HALF A PERCENTAGE POINT FOR A YEARLONG FLOATINGRATE STRATEGY TO PROVE LESS WORTHWHILE THAN FIXING RATES NOW IN A 10YEAR BOND DEAL NEVERTHELESS TREASURERS MAY BE HEDGING THEIR BETS NEW SECURITIES AND EXCHANGE COMMISSION SHELF REGISTRATIONS GREW 2 IN MAY TO 232 BILLION FROM A YEAR EARLIER INDICATING TREASURERS ARE READY TO HIT THE MARKET AT THE SAME TIME MAY'S LEVEL OF BOND ISSUANCE DECLINED FROM A YEAR EARLIER THE FIRST SUCH DECLINE SINCE FINANCING ACTIVITY TOOK OFF IN LATE 1991 ACCORDING TO MOODY'S INVESTORS SERVICE INC IN MAY A TOTAL OF 166 BILLION WAS ISSUED DOWN 13 BILLION FROM MAY 1992 A LOT OF PEOPLE HAVE DONE THEIR REFINANCING OF ISSUES AVAILABLE TO BE ECONOMICALLY REDEEMED AND TO THE EXTENT THAT THEY'VE IDENTIFIED FUTURE REFINANCING ACTIVITY THEY'RE NOT SUFFICIENTLY CONCERNED THAT RATES WILL RISE TO RUSH NEW ISSUANCES SAYS PETER MILHAUPT DIRECTOR OF CAPITAL MARKETS FOR FIRST BOSTON CORP INDEED HE SAYS GIVEN THE SLOPE OF THE YIELD CURVE THEY'RE BEING BRIBED PRETTY HANDSOMELY TO STAY SHORT FOR EXAMPLE VIACOM INC HAS A RELATIVELY HIGH PROPORTION OF TOTAL DEBT IN FLOATING RATES SAYS GEORGE S SMITH JR CHIEF FINANCIAL OFFICER THE CABLETELEVISION COMPANY PLANS TO USE FLOATINGRATE BANK DEBT THIS SUMMER TO REPLACE A CALLABLE 298 MILLION BOND ISSUE SHOULD THERE BE A JUMP IN 10YEAR RATES THE MATURITY WHERE VIACOM MIGHT ISSUE BONDS MR SMITH SAYS HE CAN QUICKLY HIT THE MARKET BECAUSE THE COMPANY'S SEC REGISTRATION IS COMPLETE HE ALSO EMPLOYS HEDGING TECHNIQUES TO LIMIT INTERESTRATE EXPOSURE ABOUT 40 OF HIS 16 BILLION IN FLOATINGRATE DEBT IS CAPPED WITH A CAP MR SMITH PAYS A COUNTERPARTY A PREMIUM AND THE COUNTERPARTY AGREES TO PAY THE INTEREST EXPENSE ABOVE AN AGREEDUPON LEVEL SHOULD RATES RISE MR SMITH'S CAPS ARE SET AT 55 HIS FLOATING RATE LAST WEEK WAS ABOUT 4 BELLSOUTH CORP UNDECIDED ABOUT INFLATION'S FUTURE COURSE LOCKED IN 145 BILLION OF ITS DEBT OVER THE LAST MONTHBUT HELD OFF LOCKING IN SOME OTHER DEBT FOR INSTANCE THE COMPANY HOLDS 14 BILLION IN COMMERCIAL PAPER THAT'S SOME 400 MILLION TO 800 MILLION MORE THAN USUAL ACCORDING TO JAMES GRENFELL BELLSOUTH'S HEAD OF GLOBAL FINANCIAL PLANNING INTERNATIONAL BUSINESS MACHINES CORP WHICH ISSUED 18 BILLION IN BONDS LAST WEEK CONTINUES TO USE COMMERCIAL PAPER MUCH MORE HEAVILY THAN 18 MONTHS AGO BECAUSE OF THE STEEPNESS OF THE CURVE SAYS JESSE GREENE ASSISTANT TREASURER IBM NOW HAS 25 BILLION OF FLOATINGRATE COMMERCIAL PAPER HE SAYS THE DEGREE TO WHICH TREASURERS ARE TAKING ADVANTAGE OF THE SHORT END OF THE YIELD CURVE IS DIFFICULT TO MEASURE TOTAL FIXEDRATE DEBT OF NONFINANCIAL CORPORATIONS GREW 63 IN 1992 WHILE THE AMOUNT OF COMMERCIAL PAPER OUTSTANDING HAS FALLEN SLIGHTLY IN THE LAST TWO YEARS BUT MUCH OF THAT FIXEDRATE DEBT WAS TURNED INTO FLOATINGRATE OBLIGATIONS THROUGH UNREGULATED INTERESTRATE SWAPS BANKERS SAY THAT OCCURS WHEN A COMPANY AGREES TO PAY THE FLOATINGRATE INTEREST PAYMENTS OF ANOTHER ISSUER'S DEBT IN RETURN FOR THAT ISSUER PICKING UP ITS FIXEDRATE TAB CORPORATE FINANCE OFFICIALS HAVE FRONTROW SEATS ON THE ECONOMY SAYS JOHN LONSKI CHIEF ECONOMIST FOR MOODY'S THEY KNOW WHAT'S TAKING PLACE WITH SALES THEY KNOW THE ORDER BOOKS IF THEY SENSE THINGS ARE SOFT THEY MAY SIMPLY DELAY COMPLETING THEIR FIXEDRATE FINANCING NEEDS UNTIL INTEREST RATES RESUME THEIR DECLINE HE SAYS SOME HOWEVER AREN'T TEMPTING FATE PUBLIC SERVICE CO OF OKLAHOMA A UNIT OF CENTRAL & SOUTH WEST CORP PRICED A 50 MILLION 65 COUPON ISSUE ON JUNE 2 TO END A 250 MILLION REFINANCING SPREE THE ISSUE WILL REPLACE ONE WITH AN 875 COUPON THE SAVINGS WERE THERE TO BE HAD AT THE CURRENT RATES SAYS MARK KRAWCZYK ASSISTANT TREASURER HOW GREEDY DO YOU WANT TO BE I'LL TAKE THESE SAVINGS WHILE THE GETTING'S GOOD 9306140012 930614 BUSINESS BRIEF ISTITUTO MOBILIARE ITALIANO ITALY REJECTS PURCHASE OFFER SETS PUBLIC SALE OF 50 STAKE ITALY'S GOVERNMENT REJECTED AN OFFER FRIDAY OF 36 TRILLION LIRE 24 MILLION FOR A 50 STAKE IN STATEOWNED BANK ISTITUTO MOBILIARE ITALIANO THE OFFER WAS MADE BY CASSA DI RISPARMIO DELLE PROVINCE LOMBARDE TREASURY MINISTER PIERO BARUCCI SAID THE STAKE WOULD BE PUT UP FOR PUBLIC SALE THE TREASURY HAS PUT A VALUE OF 38 TRILLION LIRE ON THE STAKE AND HAS ASSESSED THE WHOLE OF IMI AT 76 TRILLION LIRE SG WARBURG & CO THE BANK ADVISING IN THE SALE HAD ESTIMATED IMI'S VALUE AT 76 TRILLION LIRE TO 8 TRILLION LIRE THE TREASURY SAID THAT IN ADDITION TO ITS 50 STAKE IN IMI A FURTHER 10 CURRENTLY IN THE HANDS OF STATEOWNED INSURANCE COMPANIES ASSITALIA AND ISTITUTO NAZIONALE DELLE ASSICURAZIONI MIGHT ALSO BE SOLD THE REMAINING 40 OF IMI IS OWNED BY MINORITY SHAREHOLDERS MR BARUCCI SAID HE WOULD BE SATISFIED IF 20 OF IMI IS SOLD BY THE END OF THE YEAR THE TREASURY IS NOW WAITING FOR OFFERS A SPOKESMAN SAID 9306140011 930614 ITALY'S COMMERCIAL VEHICLE SALES MILAN SALES OF SMALL COMMERCIAL VEHICLES IN ITALY PLUNGED 32 IN MAY FROM A YEAR EARLIER ACCORDING TO FIGURES RELEASED FRIDAY BY THE NATIONAL ASSOCIATION OF CAR MAKERS ANFIA ANFIA SAID THAT IN THE FIRST FIVE MONTHS OF 1993 COMMERCIAL VEHICLE SALES WERE DOWN 28 FROM THE YEAREARLIER PERIOD COMMERCIAL VEHICLES ARE SMALL TRUCKS AND BUSES WITH A WEIGHT OF UP TO 35 METRIC TONS ANFIA SAID THAT A TOTAL OF 9533 COMMERCIAL VEHICLES WERE SOLD IN MAY COMPARED WITH 14014 IN MAY 1992 A TOTAL OF 50460 COMMERCIAL VEHICLES WERE SOLD IN THE FIRST FIVE MONTHS COMPARED WITH 70458 IN THE YEAREARLIER PERIOD ANFIA ALSO SAID THAT DOMESTIC CAR MANUFACTURERS INCLUDING FIAT AND IVECO CONTROLLED 48 OF THE DOMESTIC MARKET IN MAY SLIGHTLY UP FROM 47 IN MAY 1992 THEIR MARKET SHARE TOTALED 46 IN THE FIRST FIVE MONTHS DOWN FROM 48 IN THE YEAREARLIER PERIOD FORD MOTOR CO WAS THE BIGGEST SELLER AMONG THE FOREIGN BRANDS WITH 16 OF THE MARKET IN MAY SLIGHTLY LOWER THAN IN MAY 1992 AND 16 IN THE FIRST THREE MONTHS SLIGHTLY LOWER THAN THE YEAR BEFORE 9306140010 930614 STICKY SITUATION COKE'S SODA FOUNTAIN FOR OFFICES FIZZLES DASHING HIGH HOPES IT FITS IN SMALL WORKPLACES BUT USAGE IS SPORADIC AND CLEANUP PROBLEMATIC RED ANTS IN THE DRIP TRAY BY JOHN R EMSHWILLER AND MICHAEL J MCCARTHY STAFF REPORTERS OF THE WALL STREET JOURNAL GATHERING DUST IN A STORAGE SHED AT CAMPBELL'S TOWING IN LAKEWOOD COLO IS A MINIATURE SODA FOUNTAIN ABOUT THE SIZE OF A MICROWAVE OVEN AND EMBLAZONED WITH THE REDANDWHITE LOGO OF COCACOLA CO THE MACHINE IS CALLED A BREAKMATE AND NOT TOO LONG AGO COKE WAS SURE IT WOULD BE A WINNING WEAPON IN THE COLA WARS DESIGNED FOR THE MANY US OFFICES TOO SMALL TO SUPPORT STANDARD VENDING MACHINES BREAKMATE WAS A REVOLUTIONARY ADVANCE COKE DECLARED IN 1988 SLICK MUSIC VIDEOS TRUMPETED IT AS A HISTORIC THIRD WAVE OF COKE DISTRIBUTION AFTER FOUNTAIN SPIGOTS AND BOTTLES AND CANS AND THE COMPANY HOPED A HOME MACHINE WOULD COME NEXT ALLOWING COKE TO FLOW IN KITCHENS AS FREELY AS WATER FROM THE TAP BUT TO SNOOK CAMPBELL COPROPRIETOR OF THE TOWING SHOP HER BREAKMATE IS JUST ONE MORE PIECE OF JUNK TAKING UP SPACE I'M ABOUT TO THROW IT IN THE TRASH SHE SAYS INSTEAD OF TAKING COKE INTO THE FUTURE BREAKMATE IS TURNING INTO THE COLA GIANT'S BIGGEST MARKETING FLOP SINCE THE 1985 INTRODUCTION OF NEW COKE SOME ENTREPRENEURS WHOM COKE LURED AS DISTRIBUTORS COMPLAIN OF WILDLY OPTIMISTIC SALES AND PROFIT FORECASTS ALLEGATIONS COKE DENIES THE PROGRAM HAS BEEN PLAGUED BY EVERYTHING FROM A POTENT GERMAN MARK TO INVASIONS OF RED ANTS AND MOLD SOME TINY OFFICES FIND MAINTAINING A BREAKMATE A PAIN IN THE NECK THE 25000 BREAKMATES NOW IN THE FIELD ARE ABOUT HALF THE NUMBER COKE PROJECTED IT WOULD PLACE IN JUST THE FIRST FULL YEAR OF THE PROGRAM AFTER PUMPING SOME 30 MILLION INTO THE BIGGEST DEVELOPMENT PROJECT IN ITS HISTORY COKE HAS YET TO SEE A PROFIT NOW COKE EXECUTIVES ARE DISTANCING THEMSELVES FROM THE PROGRAM SAYING IT NEVER WAS INTENDED TO BE AS BIG AS THE FOUNTAIN AND RETAIL BUSINESSES THERE MAY HAVE BEEN A BIT OF HYPERBOLE A SPOKESMAN ALLOWS FROM A HIGH OF 1000 BREAKMATE DISTRIBUTORS HALF HAVE ABANDONED THE BUSINESS TWO ARE SUING COCACOLA THE PROGRAM HAS BEEN FAILING MISERABLY AND COKE HAS LEFT THE LITTLE GUY HOLDING THE BAG CHARGES RICHARD DONOFF A FORMER BREAKMATE DISTRIBUTOR IN THE MIAMI AREA WHO ESTIMATES HE LOST ABOUT 175000 IN THE VENTURE BREAKMATE'S FIZZLE IS A LESSON IN HOW A BIG COMPANY CAN STUMBLE BADLY WHEN ITS CULTURE AND EXPERTISE ARE GEARED TO LARGE VOLUMES IN THIS CASE THE STUMBLE IS SURPRISING COMING FROM A COMPANY RENOWNED FOR ITS MARKETING PROWESS BUT STEVE ROBINSON A BREAKMATE DISTRIBUTOR FROM JACKSON MISS CONTENDS THAT COKE APPROACHED BREAKMATE WITH A SORT OF IVORYTOWER MENTALITY THEY DIDN'T UNDERSTAND HOW YOU RUN A SMALL BUSINESS ON A DAYTODAY BASIS LIKE MUCH ELSE AT COKE BREAKMATE GREW OUT OF A FUNDAMENTAL COMPANY TENET ARTICULATED BY THE LATE CHAIRMAN ROBERT WOODRUFF THAT A COKE SHOULD ALWAYS BE WITHIN ARM'S REACH OF DESIRE THE SOFTDRINK GIANT BEGAN RESEARCHING TWO DECADES AGO HOW TO GET ITS PRODUCTS INTO THE ROUGHLY ONE MILLION US OFFICES THAT HAVE 45 OR FEWER WORKERS NOT ENOUGH TO SUPPORT A STANDARD VENDING MACHINE IT TESTED ITS FIRST OFFICE FOUNTAINS IN THE LATE 1970S AND EARLY 1980S THEY WERE TOO EXPENSIVE AND NOT RELIABLE ENOUGH COKE SAYS BUT IT PERSEVERED KNOWING THAT IF IT COULD GET INTO THE SMALL OFFICE THE HOME MARKET BECKONED WITH CANS AND BOTTLES FACING EVER TIGHTER DISPOSAL RESTRICTIONS A HOME FOUNTAIN WOULD GIVE COKE A BIG EDGE OVER ITS PACKAGED COMPETITORS COKE CAREFULLY AVOIDS PUBLIC STATEMENTS ABOUT SODA FOUNTAINS IN THE HOME APPARENTLY OUT OF FEAR OF ANGERING INDEPENDENT COKE BOTTLERS WHO VIEW THE HOME MARKET AS THEIR TURF BUT IT HAS HAD DISCUSSIONS WITH REFRIGERATOR MAKERS ABOUT PUTTING COKE DISPENSERS IN THE DOORS OF NEW MODELS FORMER MANAGERS SAY AND REFLECTING INTEREST IN THE MARKET CHAIRMAN ROBERTO C GOIZUETA HAS BEEN KNOWN TO JOKE THAT THE C ON COLDWATER FAUCETS STANDS FOR COKE TESTING A FOUNTAIN DEVICE IN OFFICES WAS VIEWED INSIDE COKE AS A NECESSARY INTERIM STEP TO THE HOME SAYS ONE FORMER MANAGER SO AFTER ITS FIRST MACHINES WERE FOUND WANTING COKE TEAMED UP WITH TWO GERMAN FIRMS ROBERT BOSCH GMBH AND SIEMENS AG OUT OF THIS TRIUMVIRATE THE BREAKMATE WAS BORN IN 1988 THE MACHINE CHILLS AND CARBONATES WATER THEN MIXES IT WITH SYRUP AND DISPENSES IT INTO CUPS IT WAS SUPPOSED TO COST A RELATIVELY AFFORDABLE 500 BUT DURING THE FIVEYEAR DEVELOPMENT PERIOD THE DEUTSCHE MARK STARTED TO RISE MAKING BREAKMATES MORE EXPENSIVE IN DOLLAR TERMS BY THE END OF 1989 THE MACHINE'S COST HAD ROUGHLY DOUBLED COKE OFFICIALS ACKNOWLEDGE THAT THE HIGHER PRICE THREW THE ECONOMICS OF BREAKMATE OUT OF WHACK IT MADE IT TOUGHER FOR THE DISTRIBUTORS WHO WOULD OWN THE MACHINES TO PROFITABLY PLACE THEM IN THE SMALLEST OFFICES SAYS MURRAY COHEN PRESIDENT OF COCACOLA REFRESHMENTS THE DIVISION THAT MARKETS BREAKMATE THESE SMALL OFFICES OF FEWER THAN 10 WORKERS MADE UP ABOUT 75 OF THE TARGET MARKET BUT COKE EXECUTIVES FELT COMPELLED TO PUSH ON THEY KNEW PEPSICO INC AND OTHER RIVALS WERE WORKING ON SIMILAR FOUNTAINS THE WORLD'S BIGGEST SOFTDRINK COMPANY WAS DETERMINED TO BEAT ALL OTHERS TO THE PUNCH MR GOIZUETA HIMSELF LUGGED A BREAKMATE ALONG TO A MEETING OF FELLOW CHIEF EXECUTIVES IN PHOENIX TO SHOW IT OFF TO HELP SELL BREAKMATES COKE SPUN OFF A SMALL COMPANY KNOWN AS BREAKTIME ENTERPRISES INC HEADED BY RICHARD DANA AN ENERGETIC SALESMAN WHO HAD MANAGED SOME SECONDTIER COKE BRANDS LIKE MR PIBB AND SPRITE BREAKTIME WITH COKE'S APPROVAL WAS TO SELL THE MACHINES TO INDEPENDENT DISTRIBUTORS WHO WOULD THEN PLACE THEM FREE IN OFFICES BUY SYRUP AND RESELL IT TO THE OFFICE ACCOUNTS AT A PROFIT THE DISTRIBUTORS WOULD PERIODICALLY DELIVER NEW CONTAINERS FILLED WITH SYRUP WHICH COULD BE REPLACED BY OFFICE WORKERS WHEN THEY RAN OUT WORKERS WOULD EITHER GET THE SOFT DRINKS FREE PAID FOR BY THEIR EMPLOYER OR PUT COINS IN THE MACHINES THE DUTY TO CLEAN THE MACHINE MIGHT FALL TO THE OFFICE STAFF OR TO THE LOCAL DISTRIBUTOR DEPENDING ON THE FREQUENCY OF VISITS COKE AND BREAKTIME OFFICIALS PAINTED GLOWING PICTURES IN RECRUITMENT PITCHES DISTRIBUTORS SAY SOME SAY THEY WERE TOLD THAT BREAKMATES WERE VIRTUALLY MAINTENANCEFREE AND THE AVERAGE MACHINE COULD BE EXPECTED TO GO THROUGH 12 TO 18 LITERS OF SYRUP A MONTH ONE PROJECTION GIVEN TO BOTTLEDWATER VENDORS ESTIMATED A GROSS PROFIT MARGIN IN THE RANGE OF 60 COKE'S MR COHEN SAYS THAT ANY SALES OR PROFIT FIGURES FROM COKE OR BREAKTIME OFFICIALS WERE MERELY ILLUSTRATIVE OF BREAKMATE'S POTENTIAL AND NOT GUARANTEES OF RESULTS DISTRIBUTORS INITIALLY FLOCKED TO THE BREAKMATE BANNER RON KELLEY OWNER OF COLORADO COFFEE A GOLDEN COLO COFFEE VENDOR SAYS HE USED MOST OF HIS SAVINGS TO BUY ABOUT 400 BREAKMATES HE EVEN CHANGED HIS FIRM'S GREENANDWHITE LOGO TO THE RED AND WHITE OF COKE TO HELP DISTRIBUTORS BUY THE BREAKMATES A COKE DIVISION HAS FINANCED A SIGNIFICANT PORTION OF THOSE SOLD MR COHEN SAYS BUT COKE'S AGGRESSIVE RECRUITMENT APPARENTLY HAS LED TO SOME CARELESSNESS THE COMPANY GAVE THE RIGHT TO SELL DISTRIBUTORSHIPS IN CERTAIN AREAS TO COLA TIME INC A MARIETTA GA FIRM WHOSE OWNER IS NOW UNDER FEDERAL CRIMINAL INVESTIGATION FOR A VARIETY OF FRAUD AND FALSECLAIMS CHARGES COKE LATER SEVERED THE RELATIONSHIP AFTER SOME DISTRIBUTORS COMPLAINED THAT COLA TIME MISLED THEM ABOUT FINANCIAL PROSPECTS DIDN'T DELIVER EQUIPMENT ON TIME AND PROVIDED FAULTY MACHINES COLA TIME'S OWNER JOHN A WILLIAMSON COULDN'T BE REACHED FOR COMMENT HIS ATTORNEY HAS DENIED WRONGDOING MEANWHILE A ST PETERSBURG FLA DISTRIBUTOR CALLED NATIONWIDE SNACK SERVICES INC STARTED RECRUITING OTHER DISTRIBUTORS WITHOUT COKE'S PERMISSION COKE SAYS AND FOR DOUBLE THE MARKET PRICE NICK COUSO A FORMER NEW YORK CITY DISTRIBUTOR SAYS NATIONWIDE SOLD HIM 12 BREAKMATES FOR ABOUT 2000 EACH AND GAVE HIM A LIST OF POTENTIAL CUSTOMERS SEVERAL OF WHOM DIDN'T EXIST AT THE ADDRESSES GIVEN NATIONWIDE OFFICIALS COULDN'T BE LOCATED COKE SAYS IT PUT A STOP TO THIS AS SOON AS IT LEARNED OF NATIONWIDE'S PRACTICES MORE GENERALLY COKE SAYS IT MAY HAVE BEEN IN TOO MUCH OF A RUSH TO SIGN DISTRIBUTORS IF THERE'S SOMETHING WE WOULD DO DIFFERENTLY WE WOULD PROBABLY DO MORE SCREENING SAYS MR COHEN TO KEEP OUT SOME BAD APPLES THAT CAME INTO THE BUSINESS COKE'S MISSTEPS MIGHT HAVE BEEN FORGOTTEN IF THE BREAKMATE HAD BEEN A SMASH HIT BUT ALTHOUGH MANY DISTRIBUTORS AND OFFICES HAVE BEEN HAPPY WITH THE BREAKMATE IT HAS HAD SOME BIG PROBLEMS ONE DRAWBACK A BREAKMATE CAN BE A MESS JIMMY SNOW REGIONAL MANAGER FOR S&D COFFEE INC A DISTRIBUTOR IN KERNERSVILLE NC SAYS HE HAS SEEN UNCLEANED BREAKMATE DRIP TRAYS WHICH CATCH THE SODA OVERFLOW WITH SO MUCH MOLD THEY LOOK LIKE A SCIENCE PROJECT IN SOME OFFICES BREAKMATES ATTRACTED ANTS AND ROACHES ESPECIALLY IN THE SOUTH WE HAVE ANTS THAT CAN SMELL SUGAR 100 MILES AWAY SAYS MR DONOFF THE FORMER MIAMI DISTRIBUTOR AT DESIGN FRAME IN WEST PALM BEACH FLA THE OFFICE BREAKMATE WAS REPEATEDLY INFESTED BY RED ANTS SAYS KRIS PRICE AN OFFICIAL OF THE PICTUREFRAMING FIRM ANTS OCCASIONALLY WERE FOUND IN THE DRINKS SHE ADDS DESIGN FRAME EVENTUALLY HAD THE MACHINE REMOVED SEVERAL DISTRIBUTORS SAY THEY LOST ACCOUNTS BECAUSE OF INSECTS SUCH CLEANING AND MAINTENANCE PROBLEMS HAVE KEPT PEPSI FROM RUSHING TO THE MARKET WITH AN OFFICE FOUNTAIN SAYS RICK ROUTHIER A PEPSI SENIOR VICE PRESIDENT TEST MARKETING OVER THE PAST FOUR YEARS HAS SHOWN SUCH MACHINES DON'T MAINTAIN THEIR CLEANLINESS WELL HE SAYS COKE'S MR COHEN SAYS INSECT PROBLEMS HAVE BEEN RARE OCCURRING ONLY WHEN MACHINES AREN'T PROPERLY CLEANED TO COKE'S CRITICS THOUGH THAT IS PRECISELY THE POINT IN SMALL OFFICES THERE IS NO MAINTENANCE STAFF TO LOOK AFTER THINGS LIKE DRIP TRAYS MECHANICAL DIFFICULTIES HAVE SIDELINED SOME BREAKMATES ROBERT AUSTIN A HOUSTON DISTRIBUTOR WHO IS SUING COKE IN AN ATLANTA STATE COURT ALLEGING FRAUD AND MISREPRESENTATION ASSERTS THAT OF HIS FIRST 61 MACHINES 18 MALFUNCTIONED HE OFFERS A LETTER FROM A BREAKTIME SERVICE MANAGER CONFIRMING THE PROBLEMS BUT SAYING THAT THIS FAR EXCEEDS WHAT IS NORMALLY SEEN OR WHAT IS ACCEPTABLE COKE SAYS MR AUSTIN'S SUIT IS WITHOUT MERIT OTHER DISTRIBUTORS SAY THE MACHINES THEY RECEIVED WERE ALMOST TROUBLEFREE TO SOME OFFICE WORKERS USED TO CANNED SODA BREAKMATE COLA DIDN'T SEEM LIKE THE REAL THING THE DIET COKE NEVER TASTED RIGHT SAYS DOYLE BURKETT COOWNER OF FMA ENTERPRISES INC A HOUSTON COLLECTION AGENCY ADDING THAT THE MACHINE WAS KIND OF A PAIN TO MAINTAIN FMA EVENTUALLY HAD IT REMOVED DISTRIBUTORS SAY FEW OFFICES USE 12 OR MORE LITERS OF SYRUP A MONTH THE VOLUME ON WHICH SOME OF COKE'S PROFIT ESTIMATES WERE BASED SEVERAL DISTRIBUTORS SAY THEIR AVERAGE PERMACHINE SALES HAVE BEEN AS LITTLE AS HALF THAT COKE'S USAGE ESTIMATES WERE IN PART BASED ON THE OFFICES' GIVING AWAY THE DRINKS INSTEAD MANY ASKED FOR COIN MECHANISMS FOR THEIR BREAKMATES AT COKE'S RECOMMENDED 25 CENTS A CUP SODA CONSUMPTION TYPICALLY PLUNGED BY HALF SAYS KEN GOUGE A DISTRIBUTOR FROM THE ORLANDO FLA AREA MR KELLEY THE COLORADAN WHO CHANGED HIS COFFEE COMPANY'S COLORS TO COKE'S RED AND WHITE SAYS HE ULTIMATELY WENT THROUGH ALL OF HIS SAVINGS LIQUIDATED HIS STOCK PORTFOLIO AND EVEN DIPPED INTO TRUST FUNDS HE HAD SET UP FOR HIS TWO GRANDDAUGHTERS TO KEEP HIS BUSINESS AFLOAT EVENTUALLY MR KELLEY SOLD HIS VIABLE ACCOUNTS AND AFTER MUCH WRANGLING HE SAYS COKE AGREED TO TAKE SOME OF THE REST OF HIS MACHINES AND FORGIVE HIS 225000 IN DEBT COKE DENIES IT FORGAVE THE DEBT SAYING IT WAS UNABLE TO COLLECT IT COKE OFFICIALS WON'T SAY HOW MUCH THE COMPANY HAS LENT TO DISTRIBUTORS TO BUY BREAKMATES OR HOW MANY ARE BEHIND IN THEIR PAYMENTS WE HAVE SOME VERY ACTIVE COLLECTION ACTIONS OUT THERE TODAY IS ALL COKE'S MR COHEN WILL SAY THESE DAYS COKE EXECUTIVES DON'T MUCH LIKE TALKING ABOUT BREAKMATE THE OPERATION WHICH ONCE HAD 70 FULLTIME EMPLOYEES NOW HAS HALF THAT COKE ISN'T CURRENTLY TRYING TO SIGN UP NEW DISTRIBUTORS IT REPURCHASED THE BREAKTIME MARKETING OPERATION IN 1989 REPLACING THE GARRULOUS MR DANA WITH MR COHEN A CONSERVATIVE 20YEAR COKE VETERAN NOW IT IS FOLDING THE UNIT INTO ITS HUGE DOMESTIC FOUNTAIN DIVISION MR COHEN CONCEDES THAT IT'S NOT THE VOLUME WE EXPECTED IN THE US BUT HE SAYS THE COMPANY HOPES TO REVERSE BREAKMATE'S FORTUNES BY TARGETING PROMISING NICHES SUCH AS HOSPITALS AND DOCTORS' OFFICES AND BY OFFERING DISTRIBUTORS A LESS COSTLY MACHINELEASE PROGRAM COKE EXPECTS BREAKMATE TO GROW MODERATELY AND EVENTUALLY BE PROFITABLE MR COHEN SAYS BUT HE CONCEDES WE'RE NOT MANAGING IT IN THE NEAR TERM TO BE A MAJOR PART OF OUR BUSINESS OVER THE LONG TERM WHO KNOWS POSSIBLY IT COULD WE AREN'T HERE PRETENDING IT COULD HAPPEN 9306140009 930614 UK'S TRADE ACCOUNT SHOWS 687 BILLION 1STQUARTER DEFICIT LONDON BRITAIN'S MERCHANDISE OR VISIBLE TRADE ACCOUNT SHOWED A SEASONALLY ADJUSTED DEFICIT OF 450 BILLION 687 BILLION IN THE FIRST QUARTER OF 1993 AFTER A DEFICIT OF 435 BILLION IN THE FOURTH QUARTER OF 1992 AND A YEAREARLIER DEFICIT 3 BILLION THE UK CENTRAL STATISTICAL OFFICE REPORTED FRIDAY EXPORTS ROSE 71 TO 2960 BILLION IN THE FIRST QUARTER FROM 2765 BILLION IN THE FOURTHQUARTER AND ROSE 14 COMPARED WITH THE YEAREARLIER PERIOD IMPORTS ROSE 66 IN THE LATEST QUARTER COMPARED WITH FOURTHQUARTER RESULTS AND ROSE 17 OVER THE YEAREARLIER PERIOD BY VOLUME EXPORTS EXCLUDING OIL AND OTHER ERRATICS ROSE 05 IN THE FIRST QUARTER FROM THE FOURTH QUARTER AND ROSE 6 FROM A YEAR AGO WHILE IMPORTS ROSE 25 AND 7 RESPECTIVELY THE CSO NOTED THAT EXPORTS AND IMPORTS IN VALUE AND VOLUME BOTH WITH AND WITHOUT OIL AND ERRATICS WERE AT RECORD LEVELS DURING THE FIRST QUARTER A SPOKESMAN ALSO POINTED OUT THAT THE RISING VALUE OF IMPORTS AND EXPORTS SUGGESTED A CONTINUED IMPACT FROM STERLING'S DEVALUATION AFTER ITS REMOVAL FROM THE EUROPEAN EXCHANGE RATE MECHANISM LAST SEPTEMBER THE FIRST QUARTER DATA ON BRITAIN'S GLOBAL TRADE IS THE FIRST SINCE EUROPEAN COMMUNITY TRADE BARRIERS WERE REMOVED ON JAN 1 SINCE THEN THE CENTRAL STATISTICAL OFFICE HAS BEEN ADOPTING A NEW SYSTEM OF COLLECTING DATA ON THE BASIS OF VALUEADDEDTAX RATHER THAN ON CUSTOMS EXCISE DUTIES THE CSO WARNED THAT GIVEN THE NEW SYSTEM OF DATA COLLECTION ALL THE FIGURES ARE PROBABLY SUBJECT TO REVISION EVEN MORE THAN USUAL A UK TREASURY SPOKESMAN SAID UK BUSINESSES NOW HAVE GREAT OPPORTUNITIES IN MARKETS AT HOME AND ABROAD THANKS NOT JUST TO STERLING DEPRECIATION BUT TO THEIR OWN EFFICIENCY GAINS 9306140008 930614 LETTERS TO THE EDITOR TAX NIGHTMARE ON DREAM STREET YOUR JUNE 1 EDITORIAL A TAX ON DREAMS HIT THE NAIL SQUARELY I AM ONE OF THE RICH THAT BILL CLINTON'S TAX PROPOSAL IS GOING TO SOAK LET ME TELL YOU HOW I GOT RICH TWENTYTHREE YEARS AGO I LEFT A JOB IN NEW YORK AND REDUCED MY INCOME OF 16000 A YEAR IN ORDER TO START MY OWN BUSINESS IN STAMFORD CONN I HAD A MORTGAGE AND THREE CHILDREN BUT I BELIEVED IN AMERICA THE LAND OF OPPORTUNITY MY PARTNER AND I WORKED VERY HARD NIGHTS AND WEEKENDS WHEN NECESSARY GRADUALLY THE BUSINESS GREW BUT I ALWAYS WAS CAREFUL ABOUT SPENDING BECAUSE I HAD THOSE THREE CHILDREN TO SEND TO COLLEGE NOW 23 YEARS LATER WE HAVE A GOOD BUSINESS DESPITE THE RECENT RECESSION AND WE EMPLOY 40 PEOPLE MY KIDS ARE THROUGH COLLEGE AND ON THEIR OWN THIS IS THE TIME FOR ME TO PUT MONEY AWAY FOR A RETIREMENT THAT MUST COME FROM MY OWN RESOURCES AND THIS IS THE TIME PRESIDENT CLINTON HAS CHOSEN FOR SOCIAL ENGINEERING AND REDISTRIBUTION OF WEALTH I BELIEVE THAT 31 OF MY INCOME IS A SUFFICIENT CONTRIBUTION TO THE FEDERAL GOVERNMENT OF COURSE I ALSO PAY 45 TO CONNECTICUT I BELIEVE THE GOVERNMENT SHOULD DO WHAT I DID FOR 23 YEARS AND MAKE SURE IT SPENDS ONLY WHAT IT CAN AFFORD TO SPEND I DEEPLY RESENT BEING CHARACTERIZED AS RICH OR A MEMBER OF THE ELITE AS IF MY INCOME HAD NOTHING TO DO WITH MY OWN EFFORTS AND I DEEPLY RESENT GIVING MORE MONEY TO WASHINGTON WHEN IT HAS PROVED IRRESPONSIBLE IN HANDLING THE MONEY IT ALREADY COLLECTS THE WASTE IN GOVERNMENT PROGRAMS AND THE PORK IN LEGISLATION IS A DISGRACE THE EDSON CORP WAS STARTED IN 1859 WE SUPPLY THE RECREATIONAL SAILBOAT MARKET WITH STEERING MECHANISMS SINCE OUR ELECTED REPRESENTATIVES CAME UP WITH THE LUXURY TAX ON BOATS EDSON'S CUSTOMER LIST OF SAILBOAT BUILDERS WENT FROM 53 TO 10 IN A PERIOD OF 18 MONTHS FOLLOWING THE EFFECTIVE DATE I SPENT A WEEK IN WASHINGTON AT AN INDUSTRY CONFERENCE IN MAY AND WAS TOLD THAT MR CLINTON'S NEW TAX BILL WOULD BUMP MY TAXES TO 35 SINCE EDSON IS A SUB S CORPORATION IF THE COMPANY'S PROFIT PLUS MY SALARY EQUALS 250000 OR MORE I WILL BE HIT WITH A MILLIONAIRE'S SURTAX OF 10 PLUS A 15 MEDICARE SURCHARGE THIS EQUALS A 465 TAX RATE AND AN INCREASE OF 135 WHO ARE THEY KIDDING IF EDSON SHOWS A PROFIT OF 34 I WILL GET HIT WITH A MILLIONAIRE'S SURTAX ALONG WITH MANY SMALL BUSINESSMEN I AM A MILLIONAIRE ON THE LIABILITY SIDE OF THE BALANCE SHEET ONLY BUT MR CLINTON DOESN'T SEEM TO GRASP THIS HIS TAX ON DREAMS HAS TURNED MY LIFE INTO A NIGHTMARE WASHINGTON WISDOM IS DESTROYING BUSINESSES AND JOBS MY EMPLOYEES COMPLAIN THAT THEIR FRIENDS ON UNEMPLOYMENT ARE MAKING MORE MONEY COLLECTING AND WORKING UNDER THE TABLE BUT MY PARTNER AND I KEEP ON WORKING HARDER AND HARDER FOR LESS INCOME AND MORE IDIOTIC TAX INCREASES HOW CAN WE MAKE THESE REPRESENTATIVES OF OURS UNDERSTAND WHAT THEY ARE DOING AND WHOM THEY ARE AFFECTING PRESIDENT CLINTON MAKES IT A PRACTICE TO NAME HIS LEFTISH PROGRAMS WITH TITLES THAT ARE THE ESSENCE OF WHAT HIS ADVERSARIES WANT TO ACCOMPLISH THUS A TAXANDSPEND BUDGET IS CALLED A DEFICIT REDUCTION AND JOBS CREATING PROGRAM THE LIBERALS REALLY KNOW WHAT IT IS BUT THEY ARE NOT SAYING AND THE CONSERVATIVES ARE SOMEWHAT DISARMED THE LATTER MUST THEN REDEFINE THE PROGRAM WITHOUT USING MR CLINTON'S TERMINOLOGY SINCE HE GETS MOST OF THE MEDIA ATTENTION HIS REPETITION OF THE NAME HE CHOOSES HAS AN IMPACT AND MAKES LIFE DIFFICULT FOR THE OPPOSITION THIS BASICALLY IS WHAT HE DID DURING THE CAMPAIGN WHEN HE CALLED HIMSELF A NEW DEMOCRAT AND CALLED FOR PRIVATE SECTOR JOBS AND GETTING TOUGH WITH WELFARE RECIPIENTS THE MEDIA AND MANY PEOPLE FELL FOR IT BUT THERE WERE TWO PIECES OF EVIDENCE THAT BELIED HIS PROMISES FIRST HE SURROUNDED HIMSELF WITH LEFTWINGERS SECOND HIS BASHING OF THE OLD DEMOCRATS NEVER RAISED THE OLD DEMOCRATS' IRE MESSRS MITCHELL FOLEY GEPHARDT BROWN JACKSON ETC NEVER STOPPED SMILING THEY KNEW WHAT THEY WERE REALLY GETTING MR CLINTON'S MOST REVEALING STATEMENT WAS WHEN HE COMMENTED ON THE TEXAS SENATORIAL RACE HE SAID THE OUTCOME OF THE RACE WOULD DEPEND ON HOW BOB KRUEGER FRAMED THE ISSUES AND HOW KAY HUTCHISON FRAMED THE ISSUES IN OTHER WORDS IT IS NOT THE ISSUES THAT ARE IMPORTANT BUT HOW THEY ARE FRAMED CALL A DUCK AN EAGLE AND YOU MIGHT GET AWAY WITH IT BUT NOW MR CLINTON IS NO LONGER CAMPAIGNING HE IS GOVERNING AND THE FRAME IS OPEN TO MUCH MORE SCRUTINY THAN HE WAS PREPARED FOR AND THUS HE IS BEWILDERED BY THE TROUBLE HE'S HAVING PERHAPS HE DOES NOT YET UNDERSTAND THAT SUBSTANCE IS WHAT COUNTS 9306140007 930614 SPEAR FINANCIAL TO CHANGE NAME SAN DIEGO SPEAR FINANCIAL SERVICES INC SAID ITS SHAREHOLDERS APPROVED A CHANGE IN THE COMPANY'S NAME TO JMC GROUP INC EFFECTIVE JUNE 21 THE COMPANY SAID THE CHANGE REFLECTS THE FACT THAT JAMES MITCHELL & CO A MARKETER OF ANNUITIES LIFE INSURANCE AND MUTUAL FUNDS IS NOW THE COMPANY'S SOLE OPERATING SUBSIDIARY FOLLOWING THE DIVESTITURE OF SPEAR'S SECURITIES OPERATIONS 9306140006 930614 BUSINESS BRIEFS CONMED CORP A MAKER OF SURGICAL AND CRITICALCARE MEDICAL PRODUCTS AGREED TO ACQUIRE MEDTRONIC ANDOVER MEDICAL INC A SUBSIDIARY OF MEDTRONIC INC TERMS WEREN'T DISCLOSED TAUBMAN CENTERS INC SAID ITS TAUBMAN REALTY GROUP LTD UNIT AGREED TO ACQUIRE THE REMAINING 50 INTEREST IN A SHORT HILLS NJ MALL IT CURRENTLY OWNS JOINTLY WITH PRUDENTIAL INSURANCE CO OF AMERICA FOR 140 MILLION PNC BANK CORP SCALED BACK ITS 328 MILLION ACQUISITION OF SEARS ROEBUCK & CO'S MORTGAGEBANKING GROUP AGREEING TO SELL THE UNIT'S WESTERN OFFICES TO A MANAGEMENTLED TEAM TERMS WEREN'T DISCLOSED LAIDLAW INC A WASTEDISPOSAL AND TRANSPORTATION CONCERN BOUGHT CLOSELY HELD NATIONAL MEDICAL TRANSPORT NETWORK INC TERMS WEREN'T DISCLOSED 9306140004 930614 BUSINESS BRIEF SPX CORP ACQUISITION OF TWO UNITS OF ALLEN GROUP COMPLETED SPX CORP MUSKEGON MICH SAID IT COMPLETED ITS 40 MILLION ACQUISITION OF TWO UNITS OF ALLEN GROUP INC A BEECHWOOD OHIO MANUFACTURER OF ELECTRONICS EQUIPMENT FOR THE AUTOMOTIVE AND TELECOMMUNICATIONS INDUSTRIES SPX IS ACQUIRING ALLEN TESTPRODUCTS AND ITS RELATED LEASING UNIT ALLEN GROUP LEASING SPX SAID THE TWO UNITS ARE EXPECTED TO HAVE ANNUAL REVENUE EXCEEDING 150 MILLION ALLEN TESTPRODUCTS MANUFACTURES DIAGNOSTIC EQUIPMENT FOR THE REPAIR AND MAINTENANCE OF AUTOMOBILES ALLEN GROUP LEASING LEASES THE EQUIPMENT SPX SAID IT WILL MERGE ALLEN TESTPRODUCTS INTO ITS EXISTING AUTOMOTIVE DIAGNOSTICS DIVISION BEAR AUTOMOTIVE FORMING A NEW DIVISION AUTOMOTIVE DIAGNOSTICS SPX MANUFACTURES SPECIALTY TOOLS AND PARTS FOR TRANSPORTATION INDUSTRIES 9306140003 930614 CLINTON HOPES TO PICK JUSTICE FOR COURT SOON DECISION MAY COME TODAY BREYER FACES TROUBLES OVER HOUSEHOLD TAXES BY JEFFREY H BIRNBAUM AND PAUL M BARRETT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON HOPES TO PICK A SUPREME COURT JUSTICE AS EARLY AS TODAY ENDING AN 88DAY ORDEAL THAT HAS BEEN MARKED BY WHITE HOUSE VACILLATION AND INDECISION STEPHEN BREYER THE LATEST FRONTRUNNER MET WITH MR CLINTON FRIDAY BUT LATER RAN INTO TROUBLE AFTER DISCLOSURES THAT HE FAILED TO PAY SOCIAL SECURITY TAXES FOR A HOUSEHOLD WORKER A SITUATION THAT HARKS BACK TO CONTROVERSIES OVER DOMESTIC HELP THAT BLOCKED TWO PREVIOUS CANDIDATES FOR ATTORNEY GENERAL AND OVER THE WEEKEND SOME SENATORS EXPRESSED RESERVATIONS ABOUT HIM IT RAISES SOME PROBLEMS SEN TOM HARKIN D IOWA SAID YESTERDAY ON NBC NEWS'S MEET THE PRESS BUT A WHITE HOUSE OFFICIAL WHO REFUSED TO BE IDENTIFIED SAID JUDGE BREYER BOSTON'S CHIEF FEDERAL APPEALS COURT JUDGE HASN'T BEEN DISQUALIFIED AND IS STILL THE FRONTRUNNER THOUGH BY NO MEANS A CERTAINTY ANOTHER CANDIDATE IS INTERIOR SECRETARY BRUCE BABBITT BUT THE OFFICIAL SAID A THIRD SURPRISE CANDIDATE MIGHT EMERGE CONGRESSIONAL OFFICIALS SAID YESTERDAY THAT THIS PERSON IS RUTH BADER GINSBURG A FEDERAL APPEALS COURT JUDGE HERE NO MATTER HOW IT TURNS OUT MR CLINTON'S HANDLING OF THE SITUATION WIDELY CONSIDERED INEPT EVEN BY POLITICAL ALLIES HAS BEEN DAMAGING AT A LAWMAKERS' BARBECUE AT THE WHITE HOUSE LAST WEEK THE BUZZ EVEN AMONG DEMOCRATS WAS THAT THE PRESIDENT NEEDLESSLY SUBJECTED CANDIDATES FOR THE POST TO PROLONGED PUBLIC SCRUTINY AND RIDICULE THEY SAID THIS WAS PARTICULARLY TRUE FOR MR BABBITT WHO HAS BEEN THE TARGET OF OLD AND UNSUBSTANTIATED ALLEGATIONS ABOUT HIS OFTDENIED CONNECTIONS TO ORGANIZED CRIME CRITICS ALSO HAVE RAISED QUESTIONS ABOUT THE PRESIDENT'S TOUGHNESS AND CONVICTION IT'S GETTING AWFUL LATE SAID ED ROLLINS A REPUBLICAN POLITICAL CONSULTANT THE IMPRESSION THAT HE'S MADE TO THE AMERICAN PUBLIC IS HE'S NOT A VERY STRONG LEADER WHO DOESN'T STAND FOR VERY MUCH MR CLINTON HESITATED ABOUT APPOINTING MR BABBITT LAST WEEK AS SOON AS ENVIRONMENTALISTS AND WESTERNSTATE LAWMAKERS STARTED SHOUTING THAT THEY NEEDED THE ABLE ARIZONAN TO REMAIN AT THE INTERIOR DEPARTMENT NOW THE PRESIDENT FACES ANOTHER PROBLEM WITH JUDGE BREYER AND PUT OFF NAMING SOMEONE TO REPLACE THE RETIRING JUSTICE BYRON WHITE UNTIL AT LEAST TODAY THE WHITE HOUSE HAS KNOWN ABOUT JUDGE BREYER'S TAX PROBLEM FOR MORE THAN FIVE WEEKS AS HAS HIS CHIEF SPONSOR SEN EDWARD KENNEDY OF MASSACHUSETTS FOR WHOM JUDGE BREYER ONCE WORKED SENATE LEADERS IN BOTH PARTIES HAVE BEEN AWARE OF THE SITUATION FOR AT LEAST THREE WEEKS AND OTHER SENATORS WERE INFORMED OVER THE LAST FEW DAYS SOME INFLUENTIAL SENATORS INCLUDING SENATE MAJORITY LEADER GEORGE MITCHELL D MAINE AND REPUBLICAN LEADER ROBERT DOLE OF KANSAS SAID THE TAX SITUATION WOULDN'T DETER THEM FROM SUPPORTING MR BREYER BUT OTHERS WEREN'T SO SANGUINE THEY SAID HIS SITUATION MIGHT RESEMBLE TOO CLOSELY THE PROBLEMS THAT ENDED THE HOPES OF ZOE BAIRD AND KIMBA WOOD TO BECOME ATTORNEY GENERAL MS BAIRD'S NOMINATION 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 ON THEM JUDGE WOOD A FEDERAL TRIAL COURT JUDGE IN NEW YORK WITHDREW FROM CONSIDERATION FOR THE JOB WHEN IT WAS DISCLOSED THAT SHE TOO HAD HIRED ILLEGAL IMMIGRANTS THOUGH IT WAS AT A TIME WHEN THE IMMIGRATION LAW DIDN'T FORBID DOING SO AND SHE HAD PAID REQUIRED TAXES FOR THEM IN ADDITION A MAJOR FACTOR THAT PREVENTED WASHINGTON ATTORNEY CHARLES RUFF FROM BEING NAMED THE NO 2 OFFICIAL IN THE JUSTICE DEPARTMENT WAS HIS NONPAYMENT OF SOME SOCIAL SECURITY TAXES FOR A PARTTIME HOUSEHOLD EMPLOYEE THE BREYER PROBLEM APPEARS ALMOST IDENTICAL TO MR RUFF'S CASE BUT IN THAT SITUATION THE ADMINISTRATION BUCKLED WHEN SENATE JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN SAID THAT IN LIGHT OF THE BAIRD EMBARRASSMENT MR RUFF WOULD HAVE TROUBLE BEING CONFIRMED AND HIS APPOINTMENT SHOULDN'T GO FORWARD IN THE WAKE OF THE RUFF INCIDENT THE ADMINISTRATION IN CONSULTATION WITH SEN BIDEN SET A NEW POLICY FOR NOMINATIONS IT FORGIVES NONPAYMENT OF SOCIAL SECURITY TAXES FOR DOMESTIC WORKERS AS LONG AS POTENTIAL APPOINTEES DIDN'T KNOW THEY HAD ACTED UNLAWFULLY AND AS SOON AS THEY BECAME AWARE OF THE PROBLEM MADE BACK PAYMENTS AND STAYED CURRENT WITHOUT MAKING PROMISES AS TO PARTICULAR NOMINEES SEN BIDEN HAS SAID HE WOULD FOLLOW THE NEW POLICY THE SENATOR HAS TOLD THE WHITE HOUSE THAT HE IS STRONGLY INCLINED TO SUPPORT JUDGE BREYER IF NO OTHER PROBLEMS COME TO LIGHT JUDGE BREYER'S BACKERS SAY THERE ARE BIG DISTINCTIONS BETWEEN HIS CASE AND MS BAIRD'S HER EMPLOYEES WERE ILLEGAL ALIENS WHO WORKED FULLTIME HIS HOUSEKEEPER WAS A NATURALIZED US CITIZEN WHO WORKED ONE OR TWO DAYS A WEEK MS BAIRD KNEW SHE WAS VIOLATING THE LAW JUDGE BREYER SAYS THAT HE DIDN'T IT DIDN'T OCCUR TO JUDGE BREYER THAT HE NEEDED TO PAY TAXES HIS PROPONENTS ARGUE BECAUSE HIS HOUSEKEEPER WAS OVER AGE 65 AND ALREADY COLLECTING SOCIAL SECURITY MOREOVER AS SOON AS MS BAIRD'S TROUBLES GOT ATTENTION IN FEBRUARY JUDGE BREYER CONTACTED THE INTERNAL REVENUE SERVICE ABOUT HIS SITUATION HIS BACKERS SAY AND SINCE THEN HE HAS PAID MORE THAN 3300 IN BACK TAXES AND PENALTIES IN A STATEMENT LAST NIGHT SEN KENNEDY SAID IN LIGHT OF THE WIDESPREAD CONFUSION ABOUT THE REQUIREMENTS TO PAY THE TAX THE BREYERS' FAILURE TO DO SO WAS AN UNINTENTIONAL OVERSIGHT BUT SOME SENATORS WORRIED THAT MR CLINTON MIGHT BE ACCUSED OF HAVING A DOUBLE STANDARD IF HE NAMES JUDGE BREYER I HOPE WE'D HAVE ONE STANDARD FOR BOTH MEN AND WOMEN SEN HARKIN SAID ADDED SEN DAVID BOREN D OKLA YOU CAN'T HAVE ONE STANDARD FOR WOMEN WHO HAVE BEEN PROPOSED FOR VERY IMPORTANT APPOINTMENTS AND ANOTHER FOR MEN IF MR CLINTON ULTIMATELY TURNS TO JUDGE GINSBURG HE WOULD BE CHOOSING A MODERATE CARTER APPOINTEE TO THE FEDERAL APPEALS COURT HERE AS A LAWYER SHE WON A SERIES OF IMPORTANT CASES BEFORE THE SUPREME COURT EXPANDING WOMEN'S LEGAL RIGHTS SHE HAS RAISED EYEBROWS IN LIBERAL CIRCLES FOR CRITICIZING THE APPROACH THE HIGH COURT TOOK IN DECIDING ROE VS WADE THE 1973 RULING THAT ESTABLISHED SPECIAL CONSTITUTIONAL PROTECTION FOR ABORTION SHE HAS ARGUED THAT IF THE COURT HAD RULED LESS SWEEPINGLY IN 1973 THERE MIGHT HAVE BEEN LESS OF A POLITICAL BACKLASH AGAINST ROE VS WADE AND ULTIMATELY WOMEN MAY HAVE WON GREATER ACCESS TO ABORTION THROUGH A COMBINATION OF JUDICIAL AND LEGISLATIVE ACTION THE DISARRAY OVER THE CHOICE OF A SUPREME COURT NOMINEE COMES AS THE INTERNAL REVENUE SERVICE IS WRAPPING UP A REPORT RELATED TO THE TUMULT IN THE WHITE HOUSE TRAVEL OFFICE THE REPORT WHICH MAY BE COMPLETED AS EARLY AS TODAY WILL DEAL WITH WHY THE AGENCY AUDITED ULTRAIR INC THE SMYRNA TENN COMPANY THAT FORMERLY CONTRACTED WITH THE TRAVEL OFFICE WHITE HOUSE AND IRS OFFICIALS SAID THERE WAS NO WHITE HOUSE PRESSURE BEHIND THE AUDIT WHICH OCCURRED AMID GROWING ALLEGATIONS THAT THE TRAVEL OFFICE PERSONNEL SHAKEUP WAS FOR POLITICAL REASONS SEN DOLE RENEWED HIS CALL FOR A CONGRESSIONAL INVESTIGATION AFTER THE WASHINGTON POST REPORTED FRIDAY THAT A FEDERAL BUREAU OF INVESTIGATION SUMMARY OF THE TRAVEL OFFICE AFFAIR INDICATED THAT ASSOCIATE WHITE HOUSE COUNSEL WILLIAM KENNEDY DURING A MAY 13 TELEPHONE CALL TO THE FBI MENTIONED THAT THE IRS MAY BE CALLED IN TO INVESTIGATE THE TRAVEL OFFICE GOVERNMENT OFFICIALS SAID THAT WHILE THE SUMMARY NOTED ONLY THE IRS MR KENNEDY ACTUALLY WAS ASKING WHICH AGENCY SHOULD INVESTIGATE POSSIBLE EMBEZZLEMENT OF TRAVEL OFFICE FUNDS JOE DAVIDSON CONTRIBUTED TO THIS ARTICLE 9306140002 930614 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE ANNOUNCED EIGHT NEW LISTINGS INCLUDING SIX INITIAL PUBLIC OFFERINGS THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET ANNOUNCED 13 NEW LISTINGS INCLUDING 10 INITIAL OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED ONE NEW LISTING THE BIG BOARD ALSO BEGAN TRADING QUALMED INC PUEBLO COLO A MANAGED HEALTH CARE CONCERN UNDER MQ WHICH PREVIOUSLY TRADED OVERTHECOUNTER AND THE AMERICAN DEPOSITARY SHARES OF LASMO PLC LONDON AN OIL AND GAS EXPLORATION CONCERN UNDER LSO LASMO ALSO TRADES ON THE LONDON STOCK EXCHANGE NATIONAL ASSOCIATION OF SECURITIES DEALERS INC ADDED THE FOLLOWING INITIAL PUBLIC OFFERINGS TO ITS NASDAQ NATIONAL MARKET DISCOVERY ZONE INC CHICAGO AN OWNER AND FRANCHISER OF INDOOR RECREATION FACILITIES FOR CHILDREN UNDER ZONE ALDILA INC SAN DIEGO A MAKER OF GRAPHITE GOLF SHAFTS UNDER ALDA AMERICAN SAFETY RAZOR CORP STAUNTON VA A MAKER OF BRANDNAME AND PRIVATELABEL CONSUMER PRODUCTS UNDER RAZR MARINER HEALTH GROUP INC MYSTIC CONN A PROVIDER OF SUBACUTE CARE SERVICES UNDER MRNR PAPA JOHN'S INTERNATIONAL INC LOUISVILLE KY A PIZZA DELIVERY AND CARRYOUT RESTAURANT OWNER AND FRANCHISER UNDER PZZA REGIONAL ACCEPTANCE CORP GREENVILLE NC A CONSUMER FINANCE CONCERN UNDER REGA ELLETT BROTHERS INC CHAPIN SC AN OUTDOOR SPORTING GOODS RETAILING CONCERN UNDER ELET SUNGLASS HUT INTERNATIONAL INC MIAMI A RETAILER OF NONPRESCRIPTION SUNGLASSES UNDER RAYS F&M BANCORP KAUKAUNA WIS A BANK HOLDING COMPANY UNDER FMBK AND ROBERT MONDAVI CORP A PREMIUM WINE PRODUCER UNDER MOND THE FOLLOWING ISSUE MOVED UP FROM THE NASDAQ SMALLCAP MARKET TO THE NATIONAL MARKET SYSTEM PACIFIC INTERNATIONAL SERVICES CORP HONOLULU AN AUTOMOBILE RENTAL AND DEALERSHIP CONCERN UNDER PISC THE AMERICAN STOCK EXCHANGE BEGAN TRADING CONTEMPRI HOMES INC TAYLOR PA A MAKER OF MODULAR HOMES AND A SPINOFF FROM ESI INDUSTRIES INC AS UNITS ON A WHENISSUED BASIS UNDER ESIEWI THE UNITS CONSIST OF A CLASS A SHARE OF CONTEMPRI AND A 1993 CALLABLE WARRANT FOR HALF A SHARE OF ESI THE AMERICAN EXCHANGE BEGAN TRADING OPTIONS ON GENERAL DATACOMM INDUSTRIES INC GREYHOUND LINES INC HEALTH PROFESSIONALS INC AND WEATHERFORD INTERNATIONAL INC AND BEGAN TRADING LEAPS OR LONGTERM EQUITY ANTICIPATION SECURITIES WHICH HAVE LONGER TERMS THAN REGULAR STOCK OPTIONS ON ITS BIOTECHNOLOGY INDEX OF 15 COMPANIES THE CHICAGO BOARD OPTIONS EXCHANGE WILL BEGIN TRADING OPTIONS TODAY ON PAYLESS CASHWAYS INC AND TOMORROW ON HEMLO GOLD MINES INC 9306140001 930614 TECHNOLOGY MICROSOFT CORP EXPLORES TV ALLIANCES WITH TIME WARNER TCI OTHER FIRMS BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP IN A BID TO PLANT ITS FLAG ATOP THE TELEVISION SETS OF AMERICA IS EXPLORING POSSIBLE ALLIANCES WITH NUMEROUS ENTERTAINMENT AND CABLE COMPANIES INCLUDING TIME WARNER INC AND TELECOMMUNICATIONS INC THE ALLIANCES ARE AIMED AT ESTABLISHING MICROSOFT SOFTWARE AS THE STANDARD FOR SOCALLED INTERACTIVE TV ACCORDING TO PEOPLE FAMILIAR WITH THE COMPANY'S PLANS INTERACTIVE TV REGARDED BY SOME COMPUTER EXPERTS AS A POTENTIALLY ENORMOUS MARKET REFERS TO A MELDING OF COMPUTING AND TELEVISION THAT WOULD ENABLE VIEWERS TO SIFT THROUGH HUGE AMOUNTS OF DATA FROM FIRSTRUN MOVIES TO ENCYCLOPEDIA ENTRIES TO THE MORNING NEWS USING THEIR TVS IT IS ONE OF THE HOTTEST COMPETITIVE BATTLEGROUNDS IN HIGH TECH MICROSOFT THE BIGGEST SOFTWARE MAKER IN THE WORLD DECLINED TO COMMENT ABOUT ITS TALKS WITH TCI AND TIME WARNER WHOSE OFFICIALS COULDN'T BE REACHED TO COMMENT IN THE PAST HOWEVER TIME WARNER'S CHAIRMAN AND CHIEF EXECUTIVE GERALD LEVIN HAS SAID THE COMPANY WAS TALKING WITH MICROSOFT AND NUMEROUS OTHER HIGHTECH CONCERNS ABOUT WORKING TOGETHER TO USHER IN A NEW ERA OF TELEVISION SPECIFICALLY HE SAID MICROSOFT WAS ONE OF SOME 80 COMPANIES THAT EXPRESSED INTEREST IN PLAYING A ROLE IN TIME WARNER'S ELECTRONIC SUPERHIGHWAY PROJECT TO BE BUILT IN ORLANDO FLA THIS YEAR IN AN INTERVIEW LAST WEEK MICROSOFT CHAIRMAN BILL GATES SAID HE'S SPENDING ABOUT 50 OF HIS TIME THESE DAYS MULLING IDEAS FOR INTERACTIVE TV AND OTHER USES OF THE DATA SUPERHIGHWAY WHICH REFERS TO THE DELIVERY OF ALL TYPES OF DATA AND ENTERTAINMENT OVER A SINGLE INFORMATION ARTERY THE COMPANY BASED IN REDMOND WASH HAS HUNDREDS OF ENGINEERS WORKING ON DEVELOPING OPERATING SOFTWARE THAT WILL CONTROL INTERACTIVE TV SYSTEMS AND ALLOW CONSUMERS TO SWIFTLY SURF THROUGH SOME 500 CHANNELS OTHER SOFTWARE MAKERS INCLUDING APPLE COMPUTER INC AND GENERAL MAGIC INC ARE TRYING TO DO THE SAME TIME WARNER NEW YORK AND TCI ENGLEWOOD COLO ARE THE LARGEST ENTERTAINMENT AND CABLE COMPANIES IN THE WORLD RESPECTIVELY THE TWO COMPANIES CONTROL ABOUT A QUARTER OF THE NATION'S CABLE SYSTEMS EARLIER THIS MONTH THEY ANNOUNCED AN ALLIANCE TO DEVELOP STANDARDS FOR HARDWARE AND SOFTWARE FOR INTERACTIVE TV TIME WARNER AND TCI HAVE RECENTLY ANNOUNCED SEVERAL ALLIANCES WITH VARIOUS COMPUTER CONCERNS INCLUDING SILICON GRAPHICS INC ANOTHER COMPANY THAT HAS AMBITIONS OF DEVISING AN OPERATING SYSTEM FOR INTERACTIVE TV IN OVERTHECOUNTER TRADING FRIDAY MICROSOFT CLOSED AT 89375 DOWN 175 TCI CLOSED AT 2275 UP 375 CENTS IN NEW YORK STOCK EXCHANGE TRADING TIME WARNER CLOSED AT 37875 UP 125 CENTS FOR MR GATES AN ALLIANCE WITH TIME WARNER AND TCI COULD PROVIDE A LEG UP IN THE DERBY TO DEVELOP THE OPERATING SOFTWARE FOR INTERACTIVE TV MICROSOFT ALSO WANTS TO BECOME A PROVIDER OF CONTENT FOR INTERACTIVE SYSTEMS THE COMPANY OWNS A BOOK PUBLISHER MAKES VIDEO GAMES AND IS DEVELOPING OTHER MATERIAL THAT COULD BE DELIVERED THROUGH INTERACTIVE SYSTEMS HOWEVER EVEN IF THE THREE GIANTS JOIN FORCES THEY MAY NOT DOMINATE INTERACTIVE TV BOTH THE CABLE AND ENTERTAINMENT INDUSTRIES ARE DIFFUSE AND FRAGMENTED WHICH MAKES IT DIFFICULT TO IMPOSE STANDARDS MICROSOFT AND INTEL CORP THE WORLD'S BIGGEST SEMICONDUCTOR MAKER WERE ABLE TO ESTABLISH THEIR TECHNOLOGIES AS STANDARDS IN PERSONAL COMPUTERS PRIMARILY BECAUSE THEY LINKED UP IN THE EARLY 1980S WITH INTERNATIONAL BUSINESS MACHINES CORP WHICH DOMINATED A VAST CHUNK OF THE COMPUTER MARKET 9306140125 930526 LETTERS TO THE EDITOR AIDS AND DEEP DENIAL GAY ACTIVISTS ARE IN DEEP DENIAL ARE GAYS MARCHING IN THE STREETS DEMANDING CLOSURE OF NUMEROUS GAY SEX CLUBS THAT BREED HIV AND AIDS HOMOSEXUALS CAN'T EVEN GET THE GAYS TO ADMIT THAT GAY SEX CLUBS ARE A DANGER ARE GAY ACTIVISTS MARCHING IN THE STREETS TO URGE COCAINE AND CRACK ABSTINENCE HOMOSEXUALS CAN'T EVEN GET THE GAY COMMUNITY TO ADMIT THAT UNBRIDLED USE OF THESE DRUGS AMONG GAYS IS THE SINGLE MOST IMPORTANT ELEMENT IN THE SPREAD OF AIDS ARE GAYS MARCHING IN THE STREET TO STOP THE FLOOD OF ILLEGAL IMMIGRATION THE SKYROCKETING MURDER RATE THE HERITAGE OF A BALLOONING NATIONAL DEBT DECLINE OF SAT SCORES GOVERNMENT WASTE OF TAX DOLLARS PEDOPHILIA IN THE CLERGY CARJACKING NO GAYS ARE TEARING UP THE STREETS FIGHTING THE MOST IMPORTANT BATTLE YET TO CONFRONT HUMANITY THE REPEAL OF SODOMY LAWS AS A HOMOSEXUAL MAN DYING OF AIDS I TAKE FULL RESPONSIBILITY FOR MY SITUATION MY DEATH WILL NOT BE THIS GOVERNMENT'S FAULT OR RONALD REAGAN'S FAULT I DON'T NEED MORE FUNDING BY TAXPAYERS AS MUCH AS I NEED GAYS TO ADMIT THAT THEY ARE PART OF THE PROBLEM AND IMPEDING A SOLUTION I WILL DIE A HOMOSEXUAL BUT I WILL NOT DIE GAY YOUR MAY 3 ARTICLE CARRIED THE HEADLINE GAY LESBIAN GROUP SEEKS TO EXPUNGE BIAS THEY SEE IN LANGUAGE THERE DEFINITELY IS BIAS IN LANGUAGE AND THE EFFORT TO CHANGE THE LANGUAGE WHICH REFLECTS THE ATTITUDE OF THE PUBLIC SHOULD BE ENCOURAGED I SUSPECT HOWEVER THAT HOMOSEXUALS OF BOTH SEXES WILL BE DEEPLY DIVIDED ON WHAT THE APPROPRIATE LANGUAGE REVISIONS SHOULD BE IT WOULD BE AN ACCOMPLISHMENT TO HAVE THE DELIGHTFUL WORD GAY RECLAIMED AND RESTORED TO ITS ORIGINAL USE IT WAS APPROPRIATE THAT YOUR APRIL 21 PAGEONE ARTICLE GOING STRAIGHT CHRISTIAN GROUPS PRESS GAY PEOPLE TO TAKE A HETEROSEXUAL PATH ABOUT EVANGELICAL CURES FOR HOMOSEXUALITY APPEARED ON THE SAME PAGE AS AN ACCOUNT OF THE BRANCH DAVIDIAN TRAGEDY IN TEXAS THE MISGUIDED EVANGELICAL TEACHING OF THE EXGAY MOVEMENT IS AS DELUDED AND EMOTIONALLY SELFDESTRUCTIVE AS THE MINDCONTROLLING RELIGIOUS EXCESSES OF DAVID KORESH RELIGIOUS ATTEMPTS TO CURE HOMOSEXUALITY ONLY ILLUSTRATE AGAIN THAT MANY HORRIBLE AND INHUMANE ACTS ARE DONE IN THE NAME OF RELIGION ALL COMPETENT SCIENTIFIC EVIDENCE AND ALL HONEST HUMAN EXPERIENCE SHOW THAT SEXUAL ORIENTATION IS AN IMMUTABLE HUMAN BIOLOGICAL CHARACTERISTIC THE RELIGIOUS EXTREMISTS WHO TEACH OTHERWISE ARE SIMPLY ENGAGED IN A NOT SO SUBTLE FORM OF BIGOTRY OR SELFHATE THAT INFLICTS UNNECESSARY SUFFERING ON GAYS AND LESBIANS YOUR ARTICLE PROVIDED A FAIRLY FACTUAL VIEW ON THE REALITY OF EXGAY MINISTRIES BUT ONLY TO A POINT YOU CITED PREDOMINANTLY CHARISMATIC PENTECOSTAL EVANGELICAL CHRISTIANS INVOLVED IN CHANGING THEIR SEXUAL BEHAVIOR FROM HOMOSEXUAL TO HETEROSEXUAL THE BREADTH OF THE EXGAY WORK ENCOMPASSES NEARLY ALL CHRISTIAN INFLUENCES SECOND THERE IS VERY LITTLE PRESSURE IN THESE CHRISTIAN GROUPS TO PRESS GAY PEOPLE TO TAKE A HETEROSEXUAL PATH MY EXODUS MINISTRY IN SACRAMENTO CALIF IS SIMILAR TO MANY IN THE NATION IN THAT GAY MEN AND WOMEN CALL US LOOKING FOR HELP WE ARE VERY UP FRONT AND OPEN REGARDING THE PROCESS OF CHANGE HUMAN BEHAVIOR IS DIFFICULT TO CHANGE PARTICULARLY IF IT HAS BEEN REINFORCED FOR MANY YEARS THERE ARE ALSO MANY FACTORS THAT CONTRIBUTE TO BEHAVIOR CHANGE INVOLVES THE WHOLE PERSON NOT JUST CEASING HOMOSEXUAL ACTIVITY EXODUS DOES NOT OFFER A STRAIGHT PILL AND FRANKLY THAT IS WHAT MANY PEOPLE EXPECT AND THIRD WHAT MOTIVATES MANY CHRISTIAN HOMOSEXUAL MEN AND WOMEN TOWARD A CHANGE IS DEEPER THAN SOCIAL PRESSURE OR PERCEIVED FANATICAL RELIGIOUS FERVOR WE ARE MEN AND WOMEN FROM ALL WALKS OF LIFE WITH VARYING RELIGIOUS EXPERIENCES BELIEVING THAT THERE IS MORE TO LIFE THAN BEING GAY SIMPLY BEING FREE FROM THE PRESSURE TO IDENTIFY WITH WHAT BEING GAY SYMBOLIZES TODAY IS LIFECHANGING SEE RELATED LETTER LETTERS TO THE EDITOR STRAIGHT TALK WSJ JUNE 14 1993 9305260048 YY93 MM06 9306140042 930505 HEAVY CASELOAD IS PATRICIA MCCOLM A VEXATIOUS LITIGANT' OR ACCIDENTPRONE CALIFORNIA WOMAN HAS SUED STORES DRIVERS TENANTS AS LEGAL SYSTEM STOOD BY YOU HAVE TO TAKE ACTION' BY RICHARD B SCHMITT STAFF REPORTER OF THE WALL STREET JOURNAL SAN FRANCISCO AS A YOUNG ACTRESS IN SUMMER STOCK PATRICIA A MCCOLM GAVE A MEMORABLE PERFORMANCE PORTRAYING THE DAUGHTER OF A HYPOCHONDRIAC IN THE IMAGINARY INVALID MOLIERE'S FARCICAL LOOK AT 17THCENTURY MEDICINE FOR THE BETTER PART OF THE LAST 15 YEARS HOWEVER SHE HAS BEEN PLAYING A FAR MORE DEMANDING ROLE MAKING A FARCE OF THE AMERICAN JUDICIAL SYSTEM ACCORDING TO A BEVY OF JUDGES LAWYERS AND DOCTORS WHO CONTEND SHE HAS REPRISED THE ROLE OF IMAGINARY INVALID AT THE EXPENSE OF NUMEROUS COMPANIES AND TAXPAYERS SINCE 1977 MS MCCOLM WHO HAS A LAW DEGREE BUT HASN'T BEEN ADMITTED TO THE BAR HAS FILED MORE THAN 30 LAWSUITS ON HER OWN BEHALF MANY OF THEM PERSONALINJURY CLAIMS AND PURSUED NUMEROUS ADDITIONAL COMPLAINTS PRIVATELY OR THROUGH NONJUDICIAL ARBITRATION SHE HAS TAKEN ON TENANTS NEIGHBORS MAJOR CORPORATIONS EVEN THE US GOVERNMENT AND HAS BEEN SUCCESSFUL IN RECEIVING CASH SETTLEMENTS OR OTHER RELIEF IN ROUGHLY HALF THE CASES THAT HAVE REACHED A CONCLUSION BY HER ACCOUNT IN COURT FILES TESTIMONY AND MEDICAL RECORDS SHE HAS BEEN THE TARGET OF A NUMBER OF VICIOUS ASSAULTS BY AMONG OTHERS A DRUNK A POSTAL WORKER A PRIVATE INVESTIGATOR A HOSPITAL EMPLOYEE AND THE WIFE OF A COLLEAGUE AT A UNIVERSITY WHERE MS MCCOLM WORKED SHE SAYS SHE HAS TAKEN SERIOUS FALLS IN TWO SAN FRANCISCO DEPARTMENT STORES BEEN INJURED BY A DOOR AT A BANK OF AMERICA BRANCH AND HAD HER FOOT RUN OVER BY A SHOPPING CART AT A GROCERY STORE SHE HAS ALSO CLAIMED TO HAVE BEEN INJURED IN CONNECTION WITH EIGHT AUTOMOBILE ACCIDENTS ONE OF THE MOST SERIOUS OF WHICH WAS A FEBRUARY 1985 SIDESWIPE INCIDENT THE DAMAGES PORTION OF WHICH WENT TO TRIAL LAST SEPTEMBER IN SAN FRANCISCO SUPERIOR COURT I HAVE NEVER SEEN A CASE WHERE SOMEONE HAS SEEN SO MANY DOCTORS AND POSTULATED SO MANY SYMPTOMS DANIEL CHAFFIN A SAN RAFAEL CALIF PSYCHIATRIST AND EXPERT WITNESS FOR THE DEFENSE TESTIFIED AT THE TRIAL IT IS ONE OF THE MOST INCREDIBLE RECORDS I HAVE SEEN THIRTY LAWSUITS IS QUITE LARGE ADDS STEPHEN GILLERS A PROFESSOR OF LEGAL ETHICS AT NEW YORK UNIVERSITY SCHOOL OF LAW MOST PEOPLE DON'T HAVE ANY HE SAYS WHEN ASKED ABOUT HER MANY INJURIES AND LAWSUITS MS MCCOLM IS DEFENSIVE DOES THE LAW SAY THERE IS A LIMIT ON THE NUMBER OF TIMES YOU CAN EXERCISE YOUR CIVIL RIGHTS IN THIS COUNTRY SHE ASKS MORE PEOPLE SHOULD STAND UP FOR THEMSELVES IN COURT SHE ARGUES THE VOLUME OF HER CASES MOREOVER IS DECEIVING SHE SAYS AS A PROPERTY MANAGER SHE RENTS ROOMS IN HER HOME SHE IS PRONE TO MORE LITIGATION THAN THE AVERAGE PERSON SHE SAYS SOME OF HER CASES ARE ALSO SMALLCLAIMS MATTERS AND IN A FEW INSTANCES SHE HAS FILED A SUIT AND THEN DECIDED SHE DIDN'T WANT TO PURSUE IT EVEN HER ADVERSARIES WHO INCLUDE A COTERIE OF INSURANCE LAWYERS WHO HAVE BEEN SHARING INFORMATION ABOUT HER ACKNOWLEDGE THAT MS MCCOLM SUFFERED REAL INJURIES FROM A 1976 AUTO ACCIDENT AND MAY STILL BE AFFECTED BY THEM SHE ALSO HAS WON OVER INDEPENDENT ARBITRATORS IN A NUMBER OF CASES I THINK SHE IS CONVINCED OF THE CORRECTNESS OF HER OPINIONS SAYS PETER DIXON AN OAKLAND CALIF ATTORNEY WHO ARBITRATED ONE OF MS MCCOLM'S BIGGEST CASES I HAVE NOT SEEN MANY PEOPLE WHO TAKE ADVANTAGE OF THE SYSTEM THROUGH A DOGGED BELIEF THAT THEY ARE RIGHT WHAT YOU DO WITH A PERSON LIKE THIS IS A VERY DIFFICULT ISSUE BUT MS MCCOLM'S OVERALL HISTORY SUGGESTS THAT SHE IS AN EXAMPLE OF ONE OF THE LEGAL SYSTEM'S MAJOR ILLS THE TENDENCY OF MANY THOUSANDS OF AMERICANS TO FILE QUESTIONABLE SUITS IN HOPES OF INDUCING DEFENDANTS USUALLY INSURERS TO SETTLE FOR LESS THAN THE COST OF LITIGATION MS MCCOLM ONE ATTORNEY SAID IN A FILING LAST YEAR IN SAN FRANCISCO SUPERIOR COURT IS A CLEVER OBSTRUCTIONIST WHO CAN USE THE LAW TO BASICALLY WEAR DOWN OPPONENTS MOST OF HER CASES APPEAR TO HAVE BEEN SETTLED FOR LESS THAN THE COSTS OF LITIGATION SHE AND OTHERS LIKE HER COULDN'T SUCCEED WITHOUT SUPPORT FROM OTHER PLAYERS IN THE JUDICIAL SYSTEM DEFENDANTS WHO CAVE IN OR KEEP THEIR SETTLEMENTS SECRET INSURERS EAGER TO JUST PAY HER OFF LAWYERS AND EXPERT WITNESSES WHO TAKE HER CASES WITHOUT CHECKING HER PAST AND JUDGES WHO HAVE TRIED HALFHEARTEDLY TO STOP HER FLOOD OF LITIGATION AND FAILED ADMITTEDLY DEFENDING AGAINST MS MCCOLM'S SUITS CAN BE SO BURDENSOME AS TO BE AN EXERCISE IN ALTRUISM UNTIL FIREMAN'S FUND INSURANCE CO DECIDED TO TAKE HER ON IN THE AUTO SIDESWIPE CASE LAST YEAR SHE HAD NEVER BEEN THROUGH A FULL JURY TRIAL THE EFFORT COST THE INSURER AN ESTIMATED 200000 PEOPLE LIKE PATRICIA HAVE A NICHE SAYS FREEMAN CULLOM A SAN FRANCISCO ATTORNEY IN 1988 HE AGREED TO PAY MS MCCOLM 1500 ON BEHALF OF A KEMPER CORP INSURANCE UNIT TO SETTLE A LAWSUIT SHE FILED SAYING HER TOES HAD BEEN RUN OVER BY A SHOPPING CART AT A SAN FRANCISCO MARKET MR CULLOM SAYS HE FELT HER CLAIM MAY HAVE BEEN EXAGGERATED BUT KEMPER MET HER SETTLEMENT DEMAND WHEN HIS LEGAL COSTS HIT 3500 AND WOULD HAVE HIT AN ADDITIONAL 10000 IN A TRIAL ACCORDING TO A 1988 LETTER HE WROTE TO KEMPER SHE IS THE QUINTESSENTIAL PROFESSIONAL LITIGANT SAYS STEPHANIE WALD A DEPUTY CALIFORNIA ATTORNEY GENERAL WHO HELPED DEFEND A SEXDISCRIMINATION LAWSUIT MS MCCOLM BROUGHT IN FEDERAL COURT AGAINST SAN FRANCISCO STATE UNIVERSITY A FORMER EMPLOYER THE STATE WON BUT THE DEFENSE COST TAXPAYERS 132824 IF YOU WANT TO KNOW WHY OUR COURTS ARE CLOGGED UP SAYS MS WALD GO SEE MS MCCOLM ORIGINALLY MS MCCOLM HAD A FLAIR FOR DRAMA OUTSIDE THE COURTROOM ACCORDING TO PEOPLE WHO HAVE SEEN HER PERFORM AS A TEENAGER IN ARIZONA SHE DANCED WITH THE TUCSON BALLET LATER STUDYING IN LONDON AND TEACHING AT SAN FRANCISCO'S AMERICAN CONSERVATORY THEATER SHE HAD LEADING ROLES IN SHAKESPEARE AND MOLIERE PLAYS AT THE ODESSA TEXAS GLOBE THEATRE IN THE SUMMER OF 1974 SHE WAS AN EXCELLENT ACTRESS SAYS MARJORIE MORRIS FOUNDER OF THE THEATER HER OTHER CREDITS INCLUDE A COMMERCIAL WITH THE ACTOR MARTY FELDMAN AND SOME EPISODES OF THE DAYS OF OUR LIVES SOAP OPERA ACCORDING TO A RESUME SUBMITTED AS AN EXHIBIT IN A SAN FRANCISCO SUPERIOR COURT CASE IN THE LATE 1970S HOWEVER MS MCCOLM'S CAREER PROSPECTS TOOK SOME TURNS FOR THE WORSE IN THE SPRING OF 1976 SHE INJURED HER FOOT IN AN AUTO COLLISION IN SONOMA COUNTY WHICH PREVENTED HER FROM DANCING ACCORDING TO A SUIT SHE FILED IN SAN FRANCISCO SUPERIOR COURT AGAINST THE DRIVER OF HER CAR SHE BLAMES THE DRIVER FOR CROSSING OVER INTO THE ONCOMING LANE ACCORDING TO COURT DOCUMENTS THAT FALL MS MCCOLM BECAME A LECTURER IN THE BROADCASTING DEPARTMENT AT SAN FRANCISCO STATE BUT THREE YEARS LATER THE UNIVERSITY DECIDED AGAINST RENEWING HER CONTRACT PROMPTING A SEXDISCRIMINATION SUIT A JUDGE FOUND AGAINST MS MCCOLM IN 1991 SHE IS APPEALING THE DECISION FROM THERE MS MCCOLM DECIDED TO PURSUE THE LAW A NEED WELLSUITED TO MY BASIC PERSONALITY TO MY PERSEVERANCE AND MY SENSITIVITY BOTH TO INJUSTICE AND TO PEOPLE SHE WROTE IN AN APRIL 1980 APPLICATION TO THE GOLDEN GATE UNIVERSITY SCHOOL OF LAW MS MCCOLM GRADUATED IN 1984 GETTING A B+ IN A COURSE CALLED PROFESSIONAL RESPONSIBILITY BUT SHE TWICE FAILED THE CALIFORNIA BAR EXAM SHE SUED THE BAR FOR INFLICTION OF EMOTIONAL DISTRESS AND VIOLATION OF A STATE LAW PROTECTING THE HANDICAPPED DIANE YU THE BAR'S GENERAL COUNSEL SAYS MS MCCOLM CURRENTLY ISN'T PURSUING THE LAWSUIT SHE SAYS MS MCCOLM ALSO FILED AN ADMINISTRATIVE CLAIM AGAINST THE BAR WHICH WAS REJECTED AND TOOK THREE APPEALS TO THE CALIFORNIA SUPREME COURT WHICH ALSO WERE REJECTED TODAY SHE IS LISTED IN THE SAN FRANCISCO TELEPHONE BOOK AS PA MCCOLM JD AND CAN RATTLE OFF THE NAMES OF CASES AND STATUTE SECTIONS WITH THE BEST OF VETERAN ATTORNEYS A NUMBER OF PEOPLE WHO HAVE SEEN HER IN ACTION HAVE SPECULATED ABOUT HER MOTIVATION SUCH AS A PSYCHIATRIST WHO SUGGESTED IN A 1990 DEPOSITION THAT HER LAWSUITS WERE A PSYCHOTHERAPEUTIC RESPONSE TO ONE OF HER ACCIDENTS MS MCCOLM WHO IS 46 YEARS OLD CONSIDERS HERSELF A CITIZEN LITIGANT AND SHE CHALLENGES ANYONE TO PROVE THAT ANY CASE SHE HAS EVER FILED HAS LACKED MERIT SHE NOTES THE FACT THAT INDEPENDENT REFEREES HAVE MADE AWARDS IN HER FAVOR IN THREE NONBINDING ARBITRATION PROCEEDINGS IN ONE CASE SHE WAS AWARDED 75000 IN CONNECTION WITH A 1983 SLIPANDFALL ACCIDENT AT THE EMPORIUM CAPWELL DEPARTMENT STORE IN SAN FRANCISCO WHICH SHE SAYS CAUSED A FOOT INJURY THAT RUINED A COMEBACK SHE WAS PLANNING IN THE ARTS THE DEFENDANTS IN ALL THREE OF THE CASES HAVE EXERCISED THEIR RIGHT TO REJECT THE AWARDS AND TAKE THEIR CASES TO COURT AS FOR SOME OF HER LESSER CASES SHE SAYS HER INJURIES ARE NO LESS REAL THE GROCERYCART SETTLEMENT FOR EXAMPLE INVOLVED A SIGNIFICANT COMPROMISE SHE SAYS SHE SLIPS OFF HER RIGHT SHOE AND SNAPS LOOK AT THAT THAT TOENAIL WILL NEVER BE THE SAME FOR THE REST OF MY LIFE HOWEVER SHE HAS BEEN ACCUSED OF MANIPULATING THE OPINIONS OF SOME OF HER DOCTORS AND THE EXTENT OF HER INJURIES BY GIVING THEM SELECTIVE INFORMATION ABOUT HER MEDICAL HISTORY IN THE COURSE OF PURSUING A CLAIM AGAINST THE I MAGNIN DEPARTMENT STORE WHERE MS MCCOLM FELL IN 1986 LATER SEEKING TREATMENT FOR A FOOT INJURY HER PODIATRIST REPRESENTED TO THE STORE'S INSURER THAT SHE WAS ASYMPTOMATIC FROM HER 1983 FALL AT THE EMPORIUM CAPWELL A UNIT OF CARTER HAWLEY HALE STORES INC AT THE TIME HOWEVER SHE HAD A CLAIM PENDING AGAINST EMPORIUM OVER AN INJURY TO THE SAME FOOT MS MCCOLM SAYS THAT THE PODIATRIST MADE AN ERROR AND THAT IT WOULD BE LUDICROUS TO SUGGEST SHE HAD REPRESENTED TO ANYONE THAT SHE WAS NO LONGER SUFFERING BANKAMERICA CORP WHICH SHE SUED IN 1990 AFTER A DOOR TO ONE OF THE BANK'S BRANCHES ALLEGEDLY RECOILED AND STRUCK HER ANKLE RAISED THE ALLEGATION THAT MS MCCOLM IS A SOPHISTICATED EXTORTIONIST USING HER KNOWLEDGE OF THE LAW AS LEVERAGE JUST BEFORE SHE FILED HER SUIT SHE TOLD ONE OF THE BANK'S ATTORNEYS YOU MUST PAY ME 5000 BECAUSE IT IS GOING TO COST YOU TEN TO DEFEND IT THE ATTORNEY ALLEGED AT A SAN FRANCISCO MUNICIPAL COURT HEARING IN OCTOBER MS MCCOLM DENIES THIS ACCOUNT THE BANK SAYS IT DECLINED THE OFFER AND WON THE CASE IN SAN FRANCISCO SMALL CLAIMS COURT IN JANUARY MS MCCOLM SAYS SHE WAS PREVENTED FROM PROVING HER CASE BECAUSE THE BANK REFUSED TO PROVIDE CRUCIAL MAINTENANCE RECORDS FOR THE DOOR IN QUESTION THE BANK DENIES THAT ACCOUNT REGARDLESS THE TALE OF WOE THAT MS MCCOLM RECOUNTS IN HER 30 LAWSUITS IS EXTRAORDINARY SHE ALLEGES MORE THAN A DOZEN PERSONAL INJURIES RESULTING FROM ASSAULTS BATTERIES DEFAMATION AND FALSE IMPRISONMENT AMONG OTHER WRONGS SHE HAS FILED NINE SUITS AGAINST TENANTS WHO OVER THE YEARS HAVE RENTED ROOMS IN HER SAN FRANCISCO HOME ASIDE FROM CLAIMS FOR BREAKING LEASES SHE SUED ONE FOR FAILING TO PROPERLY CARE FOR HER PETS AND PLANTS AND ANOTHER FOR PUNITIVE DAMAGES FOR PERSUADING A THIRD TENANT TO MOVE OUT AMONG THE OTHER CASES IS A 1987 INJUNCTION SHE WON RESTRICTING THE USE OF A BASKETBALL HOOP AT A NEIGHBOR'S HOUSE A PRECEDENT THAT WAS UPHELD BY THE CALIFORNIA COURT OF APPEAL THAT IS NOT ALL KAISER FOUNDATION HEALTH PLAN INC HER HEALTHMAINTENANCE ORGANIZATION SAYS MS MCCOLM HAS MADE MANY DEMANDS AGAINST IT FOR ARBITRATION INCLUDING A CLAIM ARISING FROM AN ALLEGED AUGUST 1986 ASSAULT BY A KAISER EMPLOYEE MS MCCOLM SAYS SHE WAS STRUCK WITH A CLIPBOARD AT A KAISER HOSPITAL THAT MONTH MS MCCOLM INDICATED IN A 1982 DEPOSITION SHE GAVE IN AN UNRELATED LAWSUIT THAT SHE HAD FALLEN DOWN SOME STAIRS AT GHIRARDELLI SQUARE IN SAN FRANCISCO AND HAD SOUGHT COMPENSATION FOR MEDICALS AND WHATNOT SHE ALSO ONCE COMPLAINED TO A CATHOLIC CHURCH OVER ITS SUNDAY MORNING BELLRINGING ACCORDING TO THE CHURCH'S PASTOR AND THE MUSIC WAS SILENCED FOR A WHILE WHILE COURT RECORDS ARE SKETCHY MS MCCOLM SEEMS TO HAVE PREVAILED IN ABOUT HALF HER CASES THAT HAVE BEEN RESOLVED ONE OF THE FEW INSTANCES IN WHICH DETAILS ARE A MATTER OF PUBLIC RECORD INVOLVED A CASE IN WHICH SHE RECEIVED 2500 IN SETTLEMENT OF A JULY 1988 AUTO ACCIDENT INVOLVING AN EMPLOYEE OF THE FEDERAL BUREAU OF INVESTIGATION AN ASSISTANT US ATTORNEY SAYS THE GOVERNMENT SETTLED THE CASE FOR NUISANCE VALUE MS MCCOLM'S INITIAL COMPLAINT REQUESTED 90000 IN DAMAGES BUT DECLINES FURTHER COMMENT THE FBI ALSO DECLINES COMMENT MS MCCOLM SAYS THAT AN ATTORNEY FILED THE CASE AGAINST HER INSTRUCTIONS AND THAT SHE NEVER EXPECTED TO WIN MORE THAN 5000 OTHER ATTORNEYS WHO HAVE OPPOSED MS MCCOLM OVER THE YEARS ACKNOWLEDGE SETTLING CASES WITH HER RETIRED SAN FRANCISCO ATTORNEY IRWIN LEFF SAYS HE ONCE SUED MS MCCOLM FOR A FEE AND SHE COUNTERSUED FOR MALPRACTICE AND IN ONE OF THESE CRAZY THINGS HE SAYS MY MALPRACTICE INSURER PAID HER ENOUGH TO PAY THE FEE IN A SIMILAR VEIN JOHN BOBAY A SAN ANSELMO CALIF ATTORNEY WHO REPRESENTED SOME FORMER TENANTS WHO TRADED SUITS WITH MS MCCOLM SAYS HER CARRIER PAID US THE AMOUNT SHE WAS ASKING FOR WITH THE UNDERSTANDING THAT WE WOULD PAY HER SIMPLY TO GET RID OF THE WHOLE LITIGATION TERRY ANDERLINI A SAN MATEO CALIF ATTORNEY TELLS OF SETTLING A 1982 CASE IN WHICH MS MCCOLM SUED A PRIVATE INVESTIGATOR TRYING TO SERVE HER IN A SEPARATE LAWSUIT SHE CLAIMED ASSAULT INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS AND FALSE IMPRISONMENT ACCORDING TO A FILING IN SAN FRANCISCO MUNICIPAL COURT THE INVESTIGATOR SUED MS MCCOLM TOO CLAIMING THAT WHEN HE TRIED TO SERVE HER IN THE LAWSUIT SHE SPRAYED HIM WITH MACE SOMEONE IN HER POSITION CAN BASICALLY LITIGATE WITH IMPUNITY SAYS BARRY HIRSHBEIN A SAN FRANCISCO ATTORNEY WHO REPRESENTED FORMER TENANTS OF MS MCCOLM'S IN A 1990 BREACHOFLEASE SUIT THE REASON HE SAYS IS THAT HER HOMEOWNER'S INSURANCE COMPANY HAS TO PICK UP THE COST OF THE DEFENSE IF SHE HERSELF IS SUED BECAUSE MANY TENANTS CAN'T AFFORD TO PAY AN ATTORNEY FOR VERY LONG YOU ARE GOING TO WEAR DOWN THE AVERAGE PERSON IN RELATIVELY SHORT ORDER HE EXPLAINS MR HIRSHBEIN DECLINES TO COMMENT ON HIS CASE IN WHICH MS MCCOLM SOUGHT 11000 IN DAMAGES BUT SAYS MS MCCOLM'S TENANT LITIGATION IN GENERAL IS AN EXTRAORDINARY RECORD I HAVE NEVER SEEN ANYTHING LIKE IT IN THE DOZEN YEARS I HAVE BEEN INVOLVED IN LANDLORDTENANT LAW MS MCCOLM SAYS I CANNOT TELL YOU ONE THING ABOUT THE CASE WITH MR LEFF AND SAYS SHE IS SHOCKED AND AMAZED THAT HE DISCUSSES IT OF THE MACING CASE SHE SAYS ANY DISCUSSION IS A VIOLATION OF THE LAW BECAUSE SHE BELIEVES THE CASE TO BE UNDER COURT SEAL ALTHOUGH SHE SAYS IN MY OPINION THERE WAS A FAVORABLE RESOLUTION I AM NOT AT LIBERTY TO COMMENT OF MR HIRSHBEIN'S OBSERVATION SHE SAYS HER CASES HAVE SUBSTANTIAL MERIT ADDING I HAVE TO RENT A ROOM IN MY HOME TO SURVIVE FINANCIALLY AND WHEN PEOPLE DO NOT PAY HER YOU HAVE TO TAKE ACTION ALSO UNDER WRAPS ARE TERMS OF A SETTLEMENT BETWEEN MS MCCOLM AND SONY CORP WHICH ARE UNDER SEAL IN US DISTRICT COURT HERE MS MCCOLM HAD SUED SONY FOR SEX DISCRIMINATION A YEAR AFTER SUING SAN FRANCISCO STATE FOR THE SAME REASON IN THE SAME COURT SONY WHICH EMPLOYED MS MCCOLM FOR FOUR MONTHS AS A DISTRICT VIDEOPRODUCTS MANAGER BEFORE FIRING HER SETTLED THE SUIT IN 1983 BUT DECLINES TO COMMENT AND WHILE MS MCCOLM DECLINES TO COMMENT ON THE OUTCOME OF HER FOOTINJURY CLAIM AGAINST I MAGNIN NOW AN RH MACY & CO UNIT COPIES OF HER CORRESPONDENCE WITH THE STORE'S INSURER AT THE TIME LIBERTY MUTUAL INSURANCE CO INDICATE SHE WON 17500 SOME OF IT FOR RENTAL MAINTENANCE ACTIVITIES SUCH AS PAINTING AND PLUMBING WORK ON HER HOUSE MANICURES AND GROOMING SERVICES FOR HER DOGS BY SETTLING THIS MATTER AS INDICATED ABOVE THE ATTORNEYS DON'T GET RICH YOUR COMPANY SAVES MONEY I AVOID ECONOMIC STRANGULATION AND WE BOTH AVOID CONSIDERABLE HASSLE MS MCCOLM ASSURED LIBERTY MUTUAL IN A DECEMBER 1986 LETTER THE INSURER AND FEDERATED DEPARTMENT STORES INC WHICH OWNED I MAGNIN AT THE TIME OF THE INCIDENT DECLINE TO DISCUSS THE CASE ATTORNEYS FOR INSURERS AND DEFENDANTS JUSTIFY SUCH RESULTS ON ECONOMIC GROUNDS BUT ACKNOWLEDGE THE EFFECT CAN BE TO ENCOURAGE LITIGATION SOME SAY INSURERS HAVE BECOME TOUGHER IN FIGHTING QUESTIONABLE SUITS BUT OTHERS SAY THERE REMAINS ENORMOUS PRESSURE TO SETTLE IT IS A TOUGH CALL FOR A CARRIER SAYS JACQUELINE JAUREGUI AN OAKLAND CALIF ATTORNEY SHE DEFENDED A 1980 ASSAULT CASE MS MCCOLM FILED AGAINST THE WIFE OF AN ACTING SAN FRANCISCO STATE BROADCASTING DEPARTMENT CHIEF WITH WHOM MS MCCOLM HAD BEEN ROMANTICALLY INVOLVED THE COUPLE WERE SEPARATED AT THE TIME THE INSURER MS JAUREGUI REPRESENTED BA T INDUSTRIES PLC'S FARMERS INSURANCE GROUP AGREED TO WHAT MS JAUREGUI CALLS A PRAGMATIC SETTLEMENT THAT HAD EVERYTHING TO DO WITH THE COSTS OF DEFENDING THE CASE AND NOTHING TO DO WITH THE MERITS OF THE CASE MS MCCOLM HAS ALSO HAD SOME TROUBLE WITH HER OWN ATTORNEYS IN NOVEMBER SHE WON A 19000 ARBITRATION AWARD ARISING FROM AN ALLEGEDLY BUNGLED LIPOSUCTION TO HER THIGHS HIPS AND STOMACH ATTORNEYS FOR THE DOCTOR HAVE REJECTED THE AWARD AND THE CASE IS GOING TO COURT ALTHOUGH WITHOUT MS MCCOLM'S ORIGINAL ATTORNEYS THEY WON COURT PERMISSION TO WITHDRAW BASED ON DIFFERENCES OVER LEGAL STRATEGY AND FEES I DISAGREED WITH HER ACTIONS BUT THERE WAS NO STOPPING HER ATTORNEY JOSEPH KAFKA OF SAN JOSE CALIF STATED IN HIS MOTION TO WITHDRAW HE SAYS IN AN INTERVIEW THAT HE STILL FEELS MS MCCOLM HAD A MERITORIOUS CASE IN THE EMPORIUM SUIT TWO SEPARATE LAW FIRMS WITHDREW FROM REPRESENTING MS MCCOLM ONE SAYING IT WOULD BE AN ETHICAL BREACH TO CONTINUE IN LIGHT OF HER HISTORY OF LITIGATION ACCORDING TO HER SUIT AGAINST EMPORIUM MS MCCOLM SLIPPED ON SOME CHRISTMAS DECORATION DEBRIS SUFFERING A SEVERE DISLOCATION OF HER RIGHT FOOT DEFENSE ATTORNEYS SAY IN COURT PAPERS THAT BOTH THE EMPORIUM INCIDENT AND THE 1986 I MAGNIN INCIDENT WERE ESSENTIALLY RELATED TO THE 1976 AUTO COLLISION MICHAEL MORIARTY A PROMINENT SAN FRANCISCO TRIAL LAWYER TOOK UP MS MCCOLM'S CAUSE AFTER THE OTHER ATTORNEYS QUIT THE ACCIDENT HAPPENED AS SHE SAID IT HAPPENED AND THERE WERE WITNESSES WHO SAW IT HE SAYS SOME PEOPLE ARE MORE ACCIDENTPRONE THAN OTHERS HE ALSO SAYS HE WAS IMPRESSED WITH THE TRIAL PREPARATION MS MCCOLM HAD DONE LINING UP SUCH POTENTIAL EXPERT WITNESSES AS THE PRIMA BALLERINA DAME MARGOT FONTEYN WHOM MS MCCOLM SAYS SHE GOT TO KNOW WHILE IN LONDON AND STANLEY SMITH A CHICAGO ECONOMIST WHO IS CONSIDERED THE LEADING PROPONENT OF HEDONIC DAMAGES FOR LOST ENJOYMENT OF LIFE THE CASE ENDED IN A MISTRIAL DAME MARGOT NEVER TOOK THE STAND BUT IT IS STILL BEING PURSUED MR MORIARTY EVENTUALLY WITHDREW AND HAS BEEN TRYING TO COLLECT A 14000 FEE FROM MS MCCOLM ON A CONTINGENCYFEE CONTRACT SOME JUDGES TOO HAVE GROWN SKEPTICAL OF MS MCCOLM'S USE OF THE COURTS BUT GENERALLY HAVEN'T CRACKED DOWN IN 1991 SAN FRANCISCO SUPERIOR COURT JUDGE JACK BERMAN DECLARED MS MCCOLM A VEXATIOUS LITIGANT THIS WOULD HAVE REQUIRED HER TO OBTAIN SPECIAL CLEARANCE BEFORE FILING ANY MORE LAWSUITS IN THE JURISDICTION BUT MS MCCOLM CHALLENGED THE FINDING AND THE JUDGE REVERSED HIMSELF JUDGE BERMAN NOW RETIRED EXPLAINS HIS CHANGE OF MIND IT JUST BECAME TOO MUCH OF A PAIN IN THE ASS TO BE PERFECTLY CANDID WITH YOU HE SAYS I DIDN'T WANT TO BE BOTHERED WITH ALL THE SECONDARY MOTIONS THAT WOULD FOLLOW SHE WAS THE WORST BUT IT IS HARD TO STOP ANYBODY IN OUR CULTURE FROM GETTING THEIR DAY IN COURT LAST YEAR JUDGE RONALD QUIDACHAY SET A HEARING TO CONSIDER DECLARING MS MCCOLM A VEXATIOUS LITIGANT IN THE SAN FRANCISCO MUNICIPAL COURT AFTER SHE HAD WON 1482 IN ONE OF HER RENT DISPUTES THE JUDGE ACTED AFTER MS MCCOLM TRIED TO COLLECT 4500 TO COVER THE COST OF HER LABOR AT 75 AN HOUR WHEN THE TENANTS DIDN'T PAY THE JUDGMENT PLAINTIFF'S COLLECTION EFFORTS DO NOT APPEAR TO BE IN GOOD FAITH BUT AN ATTEMPT TO PRACTICE LAW AND COLLECT FUNDS FOR HERSELF THE JUDGE WROTE IN A DECEMBER 1991 OPINION BUT MS MCCOLM APPEALED THE DECISION AND THEN CHALLENGED THE JUDGE FOR BIAS AND THE HEARING NEVER CAME OFF JUDGE QUIDACHAY SAYS IN AN INTERVIEW THAT HIS HANDS ARE TIED IN THE MATTER CUT TO THE TRIAL THAT BEGAN LAST SEPTEMBER IN THE CASE OF MCCOLM VS NELSON IN WHICH MS MCCOLM MAINTAINS SHE SUSTAINED DISABLING INJURIES WHEN HER CAR WAS SIDESWIPED BY ANOTHER IN 1985 A JURY PREVIOUSLY DECIDED THAT THE OTHER DRIVER WAS NEGLIGENT AND CAUSED THE ACCIDENT FIREMAN'S FUND SUBSEQUENTLY OFFERED MS MCCOLM 60000 TO SETTLE THE CASE BOTH SIDES ACKNOWLEDGE PROVIDED THE INSURER COULD PUBLICIZE TERMS AND OTHER INFORMATION ABOUT HER BUT MS MCCOLM SAYS SHE REJECTED THE OFFER BECAUSE IT WASN'T MADE IN GOOD FAITH AND VIOLATED HER RIGHTS OF PRIVACY SO THIS TRIAL IS TO SET THE DAMAGES AT THE EARLIER TRIAL THE INSURER WAS PREVENTED FROM SUBMITTING ANY INFORMATION ABOUT MS MCCOLM'S OTHER ALLEGED INJURIES OR LAWSUITS NOW THE DATA WILL BE ADMITTED OVER HER STRONG OBJECTIONS MS MCCOLM IS SEEKING AS MUCH AS 700000 REPRESENTING HERSELF MS MCCOLM TELLS THE COURT SHE HAS SUFFERED A DISLOCATED JAW A CARTILAGE TEAR IN HER LEFT SHOULDER A HYPEREXTENDED RIGHT THUMB AND A DEVIATED SEPTUM WHICH CAUSES AN EMBARRASSING SNORT WHEN SHE CATCHES COLD HER WITNESSES INCLUDE A COMPUTERSTORE OWNER AND EXFIREFIGHTER WHO SAW HER WITH A BLOODY NOSE AFTER THE ACCIDENT AND A PROMINENT HAND SURGEON WHO HAS BEEN TREATING HER AND FEELS THE ACCIDENT HAS CAUSED SUBSTANTIAL PROBLEMS I WILL SHOW THAT THIS DEFENDANT HAS TAKEN AWAY MY CHANCE OF LEADING A NORMAL LIFE MS MCCOLM SAYS IN HER OPENING STATEMENT SHE TESTIFIES THAT SHE HAS BEEN IN SUCH PAIN THAT SHE HAS ABANDONED SUCH VARIED PURSUITS AS LIFTING WEIGHTS AND RAISING MALTESE DOGS SHE SAYS SHE HAS HAD PROBLEMS FINDING WORK THE ACCIDENT OCCURRED THREE DAYS BEFORE HER FIRST ATTEMPT AT THE CALIFORNIA BAR EXAMINATION AT ONE POINT DURING THE THREEWEEK TRIAL THE JURY GETS TO SEE THE KIND OF PAIN SHE IS IN AS SHE SUFFERS AN ATTACK TO HER WRITING HAND WHICH IS WRAPPED IN A SPECIAL BRACE AND REQUIRES MEDICATION HER CASE IS SUPPORTED BY AN ARRAY OF EXPERTS ROBERT JOHNSON A MOUNTAIN VIEW CALIF FORENSIC ECONOMIST ESTIMATES MS MCCOLM HAS MORE THAN 600000 IN FUTURE IMPAIRED EARNINGS POTENTIAL FROM THE ACCIDENT BUT THE EMERGENCYROOM REPORT OF THE ACCIDENT MAKES NO MENTION OF ANY JAW OR NOSE INJURIES IT TURNS OUT THAT MS MCCOLM HAD FALLEN OFF A BUS IN LONDON FOUR MONTHS BEFORE THE SIDESWIPE ACCIDENT LANDING ON HER FACE THE DEFENSE ALSO SUGGESTS TO THE JURY THAT HER NOSE PROBLEMS WERE POSSIBLY RELATED TO PLASTIC SURGERY THAT MS MCCOLM UNDERWENT IN THE 1970S OR TO ALLERGIES AS FOR HER SHOULDER HER TREATING PHYSICIAN TESTIFYING UNDER A SUBPOENA ACKNOWLEDGES ON CROSSEXAMINATION THAT HE NEVER SAW HER UNTIL SEVEN YEARS AFTER THE ACCIDENT AND WAS UNAWARE OF A NUMBER OF INTERVENING PERSONAL INJURIES AND ASSAULTS SHE HAD SUFFERED MY OWN INCLINATION WAS THAT THIS WAS NOT A TERRIBLY DISABLING INJURY THE DOCTOR MARK JOHNSON SAYS LATER BUT THAT IS NOT WHAT I WAS THERE FOR HE SAYS HE WAS THERE TO DESCRIBE HER TREATMENT THE RESULTS OF HIS EXAMS AND INFORMATION ABOUT HER MEDICAL HISTORY AS SHE HAD RECOUNTED IT TO ME REGARDING HER THUMB THE DEFENSE PULLS OUT MEDICAL RECORDS SHOWING SHE HAD SOUGHT TREATMENT FOR RIGHTTHUMB PAIN SEVERAL TIMES AFTER THE TUMBLE IN LONDON AND BEFORE THE CAR ACCIDENT PLAINTIFF WAS NOT DAMAGED BY THIS ACCIDENT KENNETH SIMONCINI ONE OF THE LAWYERS FOR FIREMAN'S FUND SAYS IN COURT PLAINTIFF HAS FABRICATED AND MANUFACTURED HER PHYSICAL COMPLAINTS THE ATTORNEY UNVEILS A GIANT CHART DETAILING 14 OTHER PERSONAL INJURIES THAT MS MCCOLM COMPLAINED OF EITHER IN COURT OR HOSPITAL FILES IN THE YEARS AFTER THE ACCIDENT DR CHAFFIN THE PSYCHIATRIST REVIEWS MS MCCOLM'S MEDICAL HISTORY WHICH INCLUDES COSMETIC SURGERY ON HER NOSE AND BREASTS AND CHEMICAL TREATMENTS OF HER FACE THERE HAS BEEN AN AMAZING DIVERSITY OF OPINION ABOUT WHAT IS WRONG WITH YOU DR CHAFFIN TESTIFIES ALSO INTRODUCED INTO EVIDENCE IS A FRONTPAGE PHOTOGRAPH FROM THE SAN FRANCISCO CHRONICLE SHOWING A VIVACIOUS AND PRETTY MS MCCOLM WITH A DATE OUTSIDE A 1989 SYMPHONY FUNDRAISER ACCORDING TO THE NEWSPAPER THE TWO WERE TRYING TO BUY TICKETS FOR 200 EACH THE DEFENDANT IN THE CASE RICHARD NELSON A RETIRED BANKER TAKES THE STAND AND TELLS OF MOVING HIS CAR AND RETURNING TO THE SCENE OF THE ACCIDENT ONLY TO FIND MS MCCOLM TAKING PICTURES WITH A CAMERA SHE SAYS SHE KEEPS IN HER CAR FOR PARTIES ON CROSSEXAMINATION MR JOHNSON THE FORENSIC ECONOMIST WHO SAID MS MCCOLM HAD OVER 600000 IN IMPAIRED EARNINGS POTENTIAL FROM THE ACCIDENT IS ASKED IF HE CHECKED HER MEDICAL HISTORY IT'S NOT MY FIELD OF EXPERTISE I'M NOT A MEDICAL EXPERT HE SAYS WHEN ASKED TO ASSUME THAT MS MCCOLM IS ALREADY MAKING MORE MONEY FILING LAWSUITS THAN SHE WOULD IN ANY OF THE ALTERNATIVE CAREERS HE HAS ANALYZED HE SAYS IT IS NOT IN ANY OCCUPATIONAL HANDBOOK THAT I HAVE EVER SEEN I DON'T HAVE HER CURRENT OCCUPATION WILLIAM ULERY A SAN CARLOS CALIF VOCATIONALREHABILITATION COUNSELOR IS CALLED TO THE STAND AND OFFERS A LIFE ACTIVITY CALENDAR INTENDED TO SHOW HOW MS MCCOLM'S ROUTINE DETERIORATED AFTER THE ACCIDENT IT DOESN'T MENTION ANYTHING ABOUT FILING LAWSUITS SUDDENLY THE TRIAL TURNS RAUCOUS WHAT'S GOING ON HERE A RAPE MS MCCOLM SCREAMS AT ONE POINT SHE ACCUSES THE DEFENSE LAWYERS OF ATTORNEY MISCONDUCT SHE ACCUSES THE JUDGE OF JUDICIAL MISCONDUCT JUDGE OLLIE MARIEVICTOIRE WHO HAS OVERSEEN THE PROCEEDINGS OBSERVES AFTER THE JURY HAS LEFT TO DELIBERATE THAT THIS IS TOTAL CRAZINESS TWO HOURS LATER THE VERDICT COMES IN 102 AGAINST MS MCCOLM ON THE QUESTION OF WHETHER THE ACCIDENT CAUSED ANY OF HER INJURIES A STINGING DEFEAT SINCE CONTACT BETWEEN THE TWO VEHICLES WAS ESTABLISHED I THINK SHE IS AN ACCIDENTPRONE HYPOCHONDRIAC SAYS ONE OF THE JURORS WHO DECIDED THE DAMAGES CASE MS MCCOLM ACCEPTS THE VERDICT CALMLY BUT LATER ACCUSES SOME OF THE JURORS OF MISCONDUCT ONE OF THEM HAS CALLED HER DESPICABLE TO HER FACE SHE IS APPEALING THE CASE MAINTAINING THAT ADMITTING HER OTHER INJURIES AND SUITS INTO VIDENCE WAS OVERWHELMINGLY PREJUDICIAL I DON'T BELIEVE MS MCCOLM IS HANDICAPPED AT LEAST PHYSICALLY JUDGE MARIEVICTOIRE SAYS AT A LATER HEARING YOU HAVE MORE ENERGY THAN ALL OF US PUT TOGETHER SHE SAYS YOU SHOULD FIND SOME OTHER WAY TO CHANNEL IT I THINK YOU ARE THE MOST VEXATIOUS VEXATIOUS LITIGANT I HAVE EVER DEALT WITH SEE RELATED LETTER LETTERS TO THE EDITOR SO SUE ME WSJ JUNE 14 1993 9305050014 YY93 MM06 9306140005 930510 TAKING FLAK AT PROCTER & GAMBLE BRANDS FACE PRESSURE AND SO DO EXECUTIVES AMID HARSH PUBLIC CRITICISM BY CEO SOME BAIL OUT ARTZT CALLS IT TRAINING CUTTING PRICES CUTTING JOBS BY CAROL HYMOWITZ AND GABRIELLA STERN STAFF REPORTERS OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO CHAIRMAN EDWIN L ARTZT IS HAILED AS A MARKETING EXPERT BUT INSIDERS CALL HIM THE WRECKING BALL MANAGERS SAY MEETINGS WITH THEIR BOSS OFTEN TURN INTO HUMILIATING PUBLIC HAZINGS AT A MEETING OF BEAUTY PRODUCT MANAGERS ABOUT 18 MONTHS AGO MR ARTZT BERATED THE GROUP FOR MISHANDLING NOXEMA SKIN CREAM WITH A SEVERE TONE OF DISGUST HE SAID HOW COULD YOU PEOPLE BE SO STUPID TO GET INTO THIS MESS SAYS A FORMER MARKETING MANAGER MR ARTZT WENT ON FOR HALF AN HOUR UNTIL SOMEONE REMINDED HIM THAT P&G HAD ONLY RECENTLY ACQUIRED NOXEMA AND THEY HAD BEEN ASSIGNED THE BRAND JUST SIX WEEKS BEFORE NO WONDER MORE THAN A DOZEN SENIOR EXECUTIVES HAVE JUMPED THE SHIP THAT LAUNCHED IVORY SINCE MR ARTZT TOOK THE HELM IN EARLY 1990 TAKING WITH THEM YEARS OF ADVERTISING AND PRODUCTDEVELOPMENT EXPERTISE THEY INCLUDE EXECUTIVES WHO HEADED P&G'S HEALTHCAREPRODUCTS DIVISION DOMESTIC SALES AND VARIOUS OVERSEAS OPERATIONS SOME MANAGERS SAYING THEY ARE SICK OF BEING BROWBEATEN OR FRIGHTENED OF COMING CUTBACKS ARE UPDATING THEIR RESUMES AN EAST COAST EXECUTIVE RECRUITER SAYS HE IS RECEIVING UP TO 50 CALLS A DAY FROM P&G MANAGERS AND HIS FAX MACHINE IS GLUTTED WITH INQUIRIES A BRAIN DRAIN IS SOMETHING P&G CAN HARDLY AFFORD WHILE REMAINING THE MARKET LEADER IN A MAJORITY OF HOUSEHOLDPRODUCTS AND BEAUTYCARE CATEGORIES P&G HAS BEEN LOSING MARKET SHARE IN BRAND AFTER BRAND ACCORDING TO NIELSEN MARKETING RESEARCH IN 23 PRODUCT CATEGORIES MOST P&G BRANDS LOST MARKET SHARE IN THE SIX MONTHS ENDED MARCH 20 MEASURED IN DOLLAR VOLUME TO BE SURE SOME OF THIS MIGHT HAVE OCCURRED BECAUSE THIS WAS A TIME WHEN P&G WAS REDUCING MANY PRICES MR ARTZT TAKES NO BLAME FOR EXECUTIVE LOSSES AT P&G SENIOR EXECUTIVES WHO'VE DEPARTED THE COMPANY IN RECENT YEARS DID SO FOR REASONS THAT HAD NOTHING TO DO WITH THEIR RELATIONSHIP TO ME HE SAYS AS FOR HIS PERSONAL STYLE MR ARTZT SAYS I CAN GET KIND OF FEISTY BUT EMPLOYEES KNOW WHERE I'M COMING FROM IF WE GET INTO A STRATEGY MEETING AND DEBATE MY STYLE IS TO PLAY DEVIL'S ADVOCATE FAIRLY VIGOROUSLY TO MAKE SURE THEY REALLY BELIEVE IN WHAT THEY'RE PROPOSING ONCE I SEE THEY'RE ON THE RIGHT TRACK I BACK OFF AND LET THEM RUN WITH IT MR ARTZT HAS RESPONDED TO RISING COSTS AND THE MARKETSHARE THREAT WHICH P&G SAYS EASED IN SOME CATEGORIES IN MARCH AND EARLY APRIL BY PULLING OUT HIS MACHETE ANXIOUS ABOUT WHAT HE SAYS ARE MASSIVE INEFFICIENCIES INSIDE THE COMPANY AND BRANDLOYALTY EROSION AMONG CUSTOMERS MR ARTZT HAS HIRED BOOZ ALLEN & HAMILTON INC AND ASSIGNED P&G MANAGERS TO TEAMS TO HELP FASHION A STREAMLINING PLAN OVER THE NEXT THREE YEARS HE WANTS TO PARE OVERHEAD COSTS TO 125 OF SALES FROM 145 CURRENTLY BASED ON FISCAL 1992 SALES OF 2936 BILLION THAT MEANS CUTTING COSTS SOME 750 MILLION AN ANNOUNCEMENT OF SOME OF THE DETAILS IS EXPECTED IN JUNE MR ARTZT IS EXPECTED TO TRIM THE BUREAUCRACY ANALYSTS PREDICT THAT NEARLY 10 OF THE WORK FORCE OR UP TO 10000 JOBS WILL BE CUT SOME THROUGH AN EMPLOYEE BUYOUT P&G MANAGERS ARE BEING GRADED ON A ONETOFIVE SCALE WITH THOSE AT THE BOTTOM BEING QUIETLY PRODDED TO LOOK ELSEWHERE FOR WORK THE COMPANY HAS JUST SIGNED A CONTRACT WITH DRAKE BEAM MORIN AN OUTPLACEMENT FIRM TO HELP THEM SOME AGING P&G BRANDS WILL CERTAINLY GO TOO ALREADY THE COMPANY IS SCRAPPING PURITAN COOKING OIL AND WHITE CLOUD BATHROOM TISSUE OTHER VULNERABLE BRANDS INCLUDE GLEEM TOOTHPASTE PRELL SHAMPOO AND HIGH POINT INSTANT COFFEE RETAILERS SAY MR ARTZT WON'T SAY HOW MANY OR WHICH WILL BE SCRAPPED BUT HE ACKNOWLEDGES THAT P&G HAS TOO MANY BRAND VARIETIES THAT AREN'T PERFORMING HE SAYS THAT 25 OF ITS 2300 BRAND VARIETIES CONTRIBUTE JUST 2 OF SALES FEW DISPUTE THE NEED FOR ACTION TRUE P&G'S EARNINGS HAVE CONTINUED TO RISE INCREASING 9 IN THE MARCH 31 THIRD QUARTER AND 133 EXCLUDING SPECIAL ITEMS IN THE LATEST NINE MONTHS COMPARED WITH YEAREARLIER PERIODS HOWEVER NEW PRIVATELABEL AND GENERIC OFFERINGS HAVE BEEN UNDERCUTTING P&G'S PREMIUMPRICED PRODUCTS AND BEATING OUT P&G BRANDS THAT RANK SECOND THIRD OR LOWER IN THEIR CATEGORIES P&G HAS BEEN SCRAMBLING TO KEEP PACE IT IS POURING MILLIONS INTO ADVERTISING TO PUT THE SPOTLIGHT ON BESTSELLING BRANDS WHILE ALSO CUTTING PRICES IN DISPOSABLE DIAPERS ITS LARGEST CATEGORY IT HAS SLASHED PRICES THREE TIMES IN 11 MONTHS AND THIS COMES ON TOP OF P&G'S SWEEPING STRATEGY OF EVERYDAY LOW PRICING LAUNCHED 18 MONTHS AGO WHICH HAS ELIMINATED MOST PROMOTIONS AND COUPONS AND SET LOWER PRICES THAT AFFECT 70 OF VOLUME IF THEY CUT THEIR PRICES THEY'LL KILL HALF THESE PRIVATELABEL GUYS SAYS ANDREW SHORE AN ANALYST AT PAINEWEBBER INC WHO HAS A RATING OF ATTRACTIVE ON P&G STOCK BUT THEY'VE GOT TO MAKE SURE THEY CUT A LIKE AMOUNT OF COSTS WE HOPE THEY DO ONE PROBLEM IS MR ARTZT'S OVERBEARING STYLE COULD UNDERMINE HIS STRATEGY SOME MANAGERS SAY HE HAS TURNED AN ARMY OF DOERS INTO YESMEN WHO WAIT FOR HIS ORDERS WHEN MANAGERS IN TAIWAN OPPOSED HIS IDEA OF INTRODUCING JUST ONE OIL OF OLAY SKIN PRODUCT AT A TIME SUGGESTING INSTEAD A FOURPRODUCT LAUNCH MR ARTZT CURSED AND CALLED THEM IMBECILIC AND STUPID SAYS A FORMER MARKETING MANAGER YOU'D BETTER BE RIGHT BECAUSE IF YOU'RE NOT YOU'RE ALL GOING TO BE CLEANING TOILETS MR ARTZT IS SAID TO HAVE TOLD THEM IN AN INCIDENT SHORTLY BEFORE HE BECAME CEO A MANAGER WHO QUIT P&G NINE MONTHS AGO SAYS THAT BY BERATING PEOPLE ED REALLY WANTS THEM TO DO BETTER BUT IF EVERY TIME YOU GET YELLED AT YOU START DOING WHAT HE WANTS PRETTY SOON YOU DON'T COME UP WITH ANY NEW IDEAS IN ANY CASE HE SAYS HE HAS TONED DOWN HIS STYLE LATELY IN MEETINGS WITH SUBORDINATES WE CAN BE LIKE A BUNCH OF BEARS SPARRING IN A CAGE HE SAYS BUT THAT'S OK BECAUSE PEOPLE COME OUT OF MEETINGS WITH A CLEAR DIRECTION SOME SAY HOWEVER THAT FOR THEM THE GIVE AND TAKE IS MOSTLY TAKE CONSIDER MR ARTZT'S CHOICE OF YOUNG TENNIS STAR JENNIFER CAPRIATI AS SPOKESWOMAN FOR OIL OF OLAY MR ARTZT AND BRAND MANAGERS AGREED THREE YEARS AGO THAT THE STODGY SKINCREAM LINE NEEDED A NEW AD CAMPAIGN THAT WOULD ATTRACT YOUNGER WOMEN HE DECIDED TO SIGN MS CAPRIATI WHO WAS REPRESENTED BY HIS FRIEND MARK MCCORMACK A SPORTS AGENT THE CAMPAIGN FLOPPED AND P&G AFTER SIGNING MS CAPRIATI FOR A 1 MILLION THREEYEAR CONTRACT BARELY USED HER IN NATIONAL ADS THE OIL OF OLAY GROUP HAD TO WORK WEEKENDS PREPARING A REPORT FOR MR ARTZT ABOUT THE FAILED CAMPAIGN MORE TIME WAS SPENT PREPARING THE CASE THAT IT WAS BAD THAN WAS SPENT WORKING ON IT SAYS THE FORMER MANAGER MR ARTZT SAYS HE WAS PERSUADED BY MR MCCORMACK TO SIGN ON MS CAPRIATI AND HOPED SHE COULD REMAIN A SPOKESWOMAN LONG ENOUGH TO SHOW THE LONGTERM BENEFITS OF OIL OF OLAY ON HER SUNEXPOSED SKIN HE SAYS THAT WHEN THE ADS WEREN'T GETTING QUITE THE FAVORABLE SCORES THAT BRAND MANAGERS WANTED I LET THEM DECIDE TO CANCEL THE CAMPAIGN BUT HE IS USED TO GETTING HIS WAY AT A BUSINESS RECEPTION HELD AT A RESORT THREE YEARS AGO ACCORDING TO A FORMER SENIOR MANAGER MR ARTZT DEMANDED CHARDONNAY WINE FROM A TEENAGE COCKTAIL WAITRESS TOLD THERE WAS NO CHARDONNAY IN THE HOUSE HE SAID YOU DON'T UNDERSTAND I'LL WAIT HERE UNTIL YOU GET ME SOME WHEN THE HAPLESS WAITRESS REPEATED THAT CHARDONNAY WASN'T AVAILABLE THE FORMER SENIOR MANAGER SAYS MR ARTZT TOOK HER TRAY AND SAID I WILL HOLD YOUR TRAY YOU WILL GO AWAY AND GET ME CHARDONNAY AND WHEN YOU RETURN I WILL GIVE YOU YOUR TRAY BACK ANOTHER TIME WHEN SALES OF PERT PLUS THE COMBINED SHAMPOO AND CONDITIONER TOOK OFF IN THE US HE GRILLED MANAGERS ABOUT WHY THE PRODUCT WASN'T BEING SOLD IN EUROPE AND ASIA PEOPLE PRESENT SAY THAT MR ARTZT TOLD THAT P&G LACKED MANUFACTURING CAPABILITY EXPLODED YOU MEAN ALL YOU NEED IS FOUR WALLS WHY DON'T YOU PITCH A TENT EVERYONE LAUGHED BEFORE REALIZING HE WAS DEAD SERIOUS I WANT A TENT HE IS SAID TO HAVE YELLED POUNDING HIS FIST ON THE TABLE I WANT A TENT AND I'M NOT F KIDDING THIS CASE ONE OF THOSE ABOUT WHICH MR ARTZT DIDN'T COMMENT IS GIVEN A POSITIVE TWIST BY ONE MANAGER WHO WAS PRESENT HE WAS RIGHT THE MANAGER SAYS WE'D UNDERESTIMATED THE POTENTIAL OF PERT PLUS AND IN THE END ARTZT GOT US TO INCREASE PRODUCTION FASTER INDEED PERT PLUS ULTIMATELY BROUGHT P&G ACCLAIM AS A LEADER IN GLOBAL MARKETING MR ARTZT'S INTENSITY IS A QUALITY HE HAS SHOWN OVER 40 YEARS AS HE CLIMBED THE CINCINNATIBASED COMPANY'S RANKS WORKING IN VIRTUALLY EVERY DIVISION HE WAS THOUGHT OF AS A MACHINE IN TERMS OF WORK OUTPUT AND HIS ALMOST ROBOTLIKE PRECISION IN APPROACHING THE JOB SAYS ARIE L KOPELMAN CHAIRMAN OF CHANEL INC WHO WORKED AT P&G IN THE 1960S HIS DRIVE STOOD HIM IN GOOD STEAD AT P&G A COMPANY KNOWN FOR A STERN CORPORATE CULTURE THAT EMPHASIZES LOYALTY MR ARTZT CLINCHED THE TOP JOB AFTER REVIVING P&G'S INTERNATIONAL BUSINESS IN THE MID1980S A WORKAHOLIC WHO INVOLVES HIMSELF IN MINUTE DETAILS HE HAS BEEN KNOWN TO REWRITE AD COPY AND RECOMMEND COLOR CHANGES FOR PACKAGING OF PRODUCTS LIKE OLD SPICE EVERY MONTH HE READS 120 REPORTS BY DEPARTMENT HEADS TO THEIR GENERAL MANAGERS AND HE PHONES SUBORDINATES AT ALL HOURS MR ARTZT HAS WON KUDOS ON WALL STREET FOR DUMPING LOSING BRANDS LIKE CITRUS HILL ORANGE JUICE PEDDLING PRODUCTS ABROAD IN DEVELOPING MARKETS LIKE INDIA AND CHINA AND BUILDING P&G'S NEW CABINET OF COSMETICS HE PAID 114 BILLION TO ACQUIRE REVLON INC'S MAX FACTOR AND BETRIX LINES TO FLESH OUT P&G'S COVER GIRL LINE P&G STOCK CLOSED AT 49125 FRIDAY ABOUT IN THE MIDDLE OF ITS RANGE OVER THE PAST 52 WEEKS SOME SAY MR ARTZT'S HARSH MANNER ISN'T ILLSUITED TO HIS TASK HE INHERITED A LOT OF PROBLEMS AND HE'S DOING A GOOD JOB OF FIXING THEM SAYS SHELLY ZIMBLER FORMER P&G GENERAL SALES MANAGER WHO LEFT IN 1991 FOR NEUTROGENA CORP SOME PEOPLE MAY NOT LIKE THE STYLE IN WHICH HE'S FIXING THE PROBLEMS BUT THAT STYLE MAY BE THE ONLY WAY THEY CAN BE FIXED THE JURY IS STILL OUT THOUGH ON THE RADICAL CHANGES MR ARTZT HAS MADE IN HOW P&G MARKETS PRODUCTS EVERYDAY LOW PRICING HAS HALTED RETAILERS' OLD PRACTICE OF BINGEBUYING P&G PRODUCTS WHEN SPECIAL DEALS WERE OFFERED AND HAS THEREBY SMOOTHED OUT MANUFACTURING AND DELIVERY CYCLES P&G HOPES THE STRATEGY WILL SAVE IT SOME 175 MILLION ANNUALLY IN MARKETING AND MANUFACTURING COSTS AND CEMENT PRICECONSCIOUS CONSUMERS' LOYALTY BUT IT HAS ALSO CREATED OPPORTUNITIES FOR RIVALS LIKE UNILEVER MAKER OF BAR SOAP AND LAUNDRY DETERGENT WHICH IS WOOING RETAILERS WITH AN ARRAY OF PROMOTIONAL ALLOWANCES AND SPECIAL DEALS IN THE PAST YEAR UNILEVER'S POWDERED DETERGENTS HAVE GAINED NEARLY 4 IN MARKET SHARE WHILE P&G'S SHARE FELL 1 ACCORDING TO PAINEWEBBER UNILEVER IS TAKING ADVANTAGE OF P&G AND WILL CONTINUE TO SAYS FRANK NEWMAN PRESIDENT OF F&M DISTRIBUTORS INC A DEEP DISCOUNT CHAIN MEANWHILE P&G IS RUSHING TO MEND FENCES WITH RETAILERS WHO WERE ANGERED BY THE COMPANY'S ABRUPT SHIFT IN POLICY AND IN SOME CASES LIMITED SHELF SPACE FOR P&G PRODUCTS THE COMPANY HAS REINSTATED COUPONS ON A FEW BRANDS SUCH AS CHEER WITH ADVANCED COLOR GUARD DESPITE EVERYDAY LOW PRICING CHEAPER BRANDS AND PRIVATELABEL KNOCKOFFS ARE A GROWING MENACE MR ARTZT NOTES THAT THE TWO GROUPS WHICH LAST YEAR CONTROLLED 30 OF THE US MARKET IN HOUSEHOLD PRODUCTS HAVE BEEN GROWING ABOUT 2 TO 3 ANNUALLY WE SHOULDN'T HAVE LET OUR PRICING GAPS WITH THESE RIVALS GET OUT OF WHACK HE SAYS WE SAID THE PROBLEMS ARE ALL RECESSIONRELATED AND THAT'S NOT TRUE FOUR OF P&G'S SEVEN BAR SOAPS LOST MARKET SHARE BY DOLLAR VOLUME IN THE PAST SIX MONTHS INCLUDING IVORY AND CAMAY ACCORDING TO NIELSEN DATA COVERING P&G SALES AT MAJOR DOMESTIC RETAILERS FOUR SHAMPOOS ALSO LOST SHARE AS DID NINE OF THE COMPANY'S 11 LAUNDRY DETERGENTS INCLUDING TIDE BOLD GAIN ERA DASH AND OXYDOL ALL FIVE OF P&G'S ALLPURPOSE CLEANERS SUCH AS MR CLEAN AND TOP JOB WERE DOWN ALONG WITH BOUNCE AND DOWNY FABRIC SOFTENERS CASCADE DISHWASHER DETERGENT SCOPE MOUTHWASH CREST TOOTHPASTE PEPTOBISMOL CRISCO COOKING OIL SECRET AND SURE DEODORANTS BANNER TOILET TISSUE JIF PEANUT BUTTER FOLGERS COFFEE AND DUNCAN HINES CAKE MIX P&G SAYS THAT IN MARCH AND EARLY APRIL IT HAS SEEN A MARKETSHARE INCREASE IN SOME CATEGORIES WE SEE THIS AS A TREND SAYS A SPOKESWOMAN THAT IS ESPECIALLY SO WHERE P&G HAS ROLLED OUT NEW PRODUCTS AND PROMOTED THEM WITH TRADE ALLOWANCES AND COUPONS FOR EXAMPLE P&G IS SEEING GAINS IN SHAMPOO FUELED BY THE LAUNCH OF NEW PANTENE VARIETIES WHILE IN DETERGENTS MARKET SHARE IMPROVED 1 IN MARCH HELPED BY THE NEW CHEER VARIETY AND TIDE WITH GREASE RELEASER IN SOME KEY CATEGORIES HOWEVER P&G HAS BEEN SLOW TO LAUNCH NEW PRODUCTS WHICH MAY BE THE ONLY WAY TO STAY AHEAD WHILE MAX FACTOR HAS A 50 MILLION NEW PRODUCT LAUNCH UNDER WAY KIMBERLYCLARK CORP HAS BEAT P&G TO MARKET WITH HOTSELLING PULLUP TRAINING PANTS AS WELL AS WITH ULTRATHIN DIAPERS MAYBE I WASN'T HANDSON ENOUGH IN DIAPERS MR ARTZT SAYS HE IS ALSO CANDID ABOUT HIS FRUSTRATION WITH P&G'S UNWIELDY BUREAUCRACY HE GOES ON AT LENGTH ABOUT HOW 20 OF THE 85000 ORDERS THE COMPANY PROCESSES EACH MONTH ARE WRONG AT ENTRY AND HOW 27 OF THE SALES FORCE'S TIME IS SPENT CORRECTING THOSE ERRORS BUT THESE PROBLEMS MR ARTZT SAYS ARE BEING ADDRESSED WE'RE NOT SITTING AROUND ACTING LIKE WE DON'T HAVE PROBLEMS HE SAYS SEE RELATED LETTER LETTERS TO THE EDITOR LAST SOAP POWDER GOES DOWN THE DRAIN WSJ JUNE 14 1993 9305100032 YY93 MM06 9306140039 930430 PURPLE MARTINS SING A SONG OF MONEY IN GRIGGSVILLE ILL THE SWALLOWS HAVE ADMIRERS AND THEY EAT MOSQUITOES BUT THERE IS A DOWN SIDE BY ANDREA GERLIN STAFF REPORTER OF THE WALL STREET JOURNAL GRIGGSVILLE ILL THE PURPLE MARTIN IS AN ENGAGING LITTLE BIRD WITH A LOVELY WARBLE AND A HEALTHY APPETITE FOR PESKY INSECTS BUT FEATHERS ARE FLYING AMONG MARTIN ADMIRERS A BATTLE HAS BEEN RAGING IN THE IOWA LEGISLATURE WHICH IS TO ADJOURN TODAY AFTER MONTHS OF WRANGLING BETWEEN TWO TOWNS OVER THE RIGHT TO CALL THEMSELVES THE PURPLE MARTIN CAPITAL OF THE STATE A SIMILAR SETTO IN ARKANSAS WAS AVERTED IN FEBRUARY WHEN ITS SENATE CRAFTILY PROCLAIMED FORT SMITH THE NORTHWEST ARKANSAS PURPLE MARTIN CAPITAL AND LAKE VILLAGE THE SOUTHEAST ARKANSAS PURPLE MARTIN CAPITAL CONTROVERSY HAS FLARED AMONG NATURALISTS OVER WHETHER THE MONTHLY NATURE SOCIETY NEWS WHICH CALLS ITSELF THE VOICE OF THE PURPLE MARTIN HAS EXAGGERATED THE BIRD'S TASTE FOR MOSQUITOES SO AS TO MORE READILY HAWK PURPLE MARTIN MERCHANDISE WHAT LINKS ALL THESE PURPLE MARTIN MATTERS IS GRIGGSVILLE'S JL WADE A WHITEHAIRED 80YEAROLD WITH A PENCHANT FOR PURPLE SHIRTS AND TIES FOR THE PAST 30 YEARS HE HAS PUSHED THE IDEA IN BOOKS AND LECTURES THAT HOMES MUST BE PROVIDED FOR PURPLE MARTINS DISPLACED FROM THEIR DWINDLING NATURAL FOREST HABITATS MR WADE OWNS NATURE HOUSE INC THE NATION'S BIGGEST MANUFACTURER OF PURPLE MARTIN HOUSES ALUMINUM STRUCTURES THAT SIT ON POLES AND SELL FOR AS LITTLE AS 40 FOR A SIMPLE SIXUNIT DWELLING AND AS MUCH AS 300 FOR AN ELABORATE 24UNIT CASTLE MR WADE WON'T DIVULGE HIS SALES FIGURES BUT CLAIMS HE HAS 80 OF THE MARKET A COMPETITOR SAYS 50 MAY BE MORE LIKE IT ALTOGETHER PURPLE MARTIN PARAPHERNALIA IS SAID TO BE A 30 MILLIONAYEAR BUSINESS MR WADE DISCLAIMS ANY FINANCIAL MOTIVE FOR AGGRESSIVELY PROMOTING THE BIRD NOTING THAT WHEN HE FIRST TOOK AN INTEREST IN THE EIGHTINCH CREATURE IN THE EARLY 1960S THERE WAS HARDLY A MARKET FOR HIS BIRDHOUSES I'M A NATURALIST HE SAYS I JUST LOVE THE OUTDOORS CRITICS DON'T BUY THAT MR WADE IS HIGHLY MOTIVATED BY PROFIT CLAIMS JAMES R HILL III AN ORNITHOLOGIST WHO AS A STUDENT DID RESEARCH WITH HIM AND WHO NOW EDITS THE QUARTERLY PURPLE MARTIN UPDATE IN EDINBORO PA MR WADE ACTUALLY BEGAN HIS CAREER AS A GROCER THEN IN 1947 FOLLOWING MILITARY SERVICE HE SWITCHED TO MAKING TELEVISION ANTENNAS HE GAVE THAT UP IN THE EARLY 1960S HE SAYS BECAUSE HE COULD SEE CABLE TV COMING AFTER AN ABORTIVE ATTEMPT TO MAKE ALUMINUM DOGHOUSES HE SHIFTED TO MARTIN HOUSES AND HATCHED A SCHEME TO PROMOTE THE BIRDS IN INSECT CONTROL MR WADE CLAIMED THAT ONE PURPLE MARTIN THE LARGEST NORTH AMERICAN SWALLOW COULD CONSUME 2000 MOSQUITOES A DAY HUNGRY MARTINS IN FLIGHT NO DOUBT DO CONSUME INSECTS BUT JUST HOW MANY MOSQUITOES IS IN QUESTION ROGER TORY PETERSON AUTHOR OF A FIELD GUIDE TO THE BIRDS THINKS THE 2000ADAY CLAIM IS LEGITIMATE NEIL GARRISON A NATURALIST AT MARTIN PARK NATURE CENTER IN OKLAHOMA CITY SAYS IT'S BUNK MR WADE STRESSES THAT ALL HE CLAIMS IS THAT PURPLE MARTINS HAVE THE CAPACITY TO EAT 2000 MOSQUITOES A DAY BASED ON THE SIZE OF THEIR STOMACHS AND AUTOPSY EVIDENCE SUCH DISPUTES ASIDE A PURPLE MARTIN TOURISM BOOM IS IN FULL SPRING SWING GRIGGSVILLE A RURAL TOWN OF 1228 BEGAN CALLING ITSELF THE PURPLE MARTIN CAPITAL OF THE NATION AROUND THE TIME ITS FIRST GIANT BIRDHOUSE WAS ERECTED IN 1965 TODAY THANKS TO MR WADE HOMELESSNESS ISN'T A PARTICULAR PROBLEM FOR PURPLE MARTINS HERE IN FRONT OF THE PURPLE MARTIN INN STANDS A 40FOOTTALL STRUCTURE KNOWN COLLOQUIALLY AS THE EMPIRE STATE BUILDING OF PURPLE MARTINS IT HAS ENOUGH APARTMENTS TO ACCOMMODATE 600 FEATHERED FAMILIES WHAT'S MORE 48 SMALLER PURPLE MARTIN HOUSES LINE THE BLOCKS ALONG THE MAIN STREET AND ARE NOW FILLING UP WITH SEASONAL TENANTS BACK FROM WINTER HOMES IN BRAZIL PURPLE MARTINS ARE CREATURES OF HABIT TENDING TO RETURN TO PREVIOUSLY OCCUPIED DWELLINGS SAYS EUGENE S MORTON AN EVOLUTIONARY BIOLOGIST AT THE NATIONAL ZOO IN WASHINGTON BUT THERE'S NO PROOF THEY PREFER CONDOS WITH ALUMINUM SIDING IN FACT SOME MARTINS HAVE FOUND DOMESTIC BLISS IN HOLLOWEDOUT GOURDS TRAFFIC LIGHTS AND HOLES BORED BY WOODPECKERS PURPLE MARTINS ARE POPULAR WITH BIRDWATCHERS BECAUSE OF THEIR ACROBATIC SKYDIVING AND THEIR SINGING VOICES THEY HAVE SUCH A SWEET BIRD SONG SAYS MARGIE SMITH A PURPLE MARTIN LANDLORD IN THE BIRD'S TENNESSEE CAPITAL MT JULIET THEY ACT LIKE THEY'RE TALKING GRIGGSVILLE OFFICIALS CREDIT MARTINWATCHING TOURISTS WITH LAST YEAR'S 15 INCREASE IN SALESTAX REVENUE AND OTHER SMALL TOWNS HAVE THE SAME ENTHUSIASM FOR PURPLE MARTINS THAT THEY MIGHT HAVE SAY FOR SLOT MACHINES NINE STATE LEGISLATURES ALREADY HAVE DESIGNATED MARTIN CAPITALS ST MATTHEWS SC STAGES AN ANNUAL MISS PURPLE MARTIN BEAUTY PAGEANT IN IOWA THE FIGHT FOR PURPLE MARTIN BRAGGING RIGHTS BETWEEN SHELBY AND COUNCIL BLUFFS GOES ON AND ON DENNIS DEVINE SR OF COUNCIL BLUFFS HAS A BUSINESS CARD IDENTIFYING HIMSELF AS A PURPLE MARTIN CONSULTANT SAYS HE I HAVE MORE PURPLE MARTINS IN MY BACKYARD THAN THERE ARE IN ALL OF SHELBY WHILE MR DEVINE WAS INUNDATING LEGISLATORS AND REPORTERS WITH INFORMATION PACKETS AND PETITIONS SHELBY GOT THE IOWA HOUSE TO APPROVE A BILL GIVING IT THE PURPLE MARTIN AND DESIGNATING ITS RIVAL THE STATE'S BLACK SQUIRREL CAPITAL INSTEAD THE BILL IS LANGUISHING IN THE SENATE NOTHING HAS BEEN RESOLVED FEEDING THE FLAMES OF DESIRE IS THE NATURE SOCIETY NEWS WHICH REPORTS ON THE MARTINS' MIGRATION FROM BRAZIL READERS' ODES TO PURPLE MARTINS AND DOITYOURSELF INSTRUCTIONS FOR HAVING A COMMUNITY DECLARED A PURPLE MARTIN CAPITAL THE NEWSPAPER ALSO CARRIES ARTICLES AND COLUMNS BY MR WADE EXTOLLING THE VIRTUES OF NATURE HOUSE PRODUCTS INDEED THE NEWSPAPER'S OFFICE IS ON FACTORY PREMISES AND HARRY WRIGHT THE PAPER'S EDITOR SERVES AS NATURE HOUSE SPOKESMAN BUT EVEN PR CAN'T HELP THE BIRDS' IMAGE IN BRAZIL WHERE PERHAPS 90 OF THE MARTIN POPULATION SPENDS THE WINTER LIKE COLLEGE KIDS IN FORT LAUDERDALE ON SPRING BREAK THE BIRDS FLOCK BY THE THOUSANDS TO SLEEP IN TREES IN THE HANDSOMELY TILED PARKS OF BRAZIL'S SOUTHERN CITIES TRASHING THE LANDSCAPE BEFORE DEPARTING AT DAWN TO CHASE INSECTS SOME CITIES HAVE HIRED EXTRA WORKERS TO HOSE MARTIN WASTE OFF PARK BENCHES AND TO HAUL OFF BIRD DROPPINGS AND MOLTED FEATHERS IN DUMP TRUCKS OF COURSE SOME OF THAT BIRD EXCREMENT NEVER REACHES THE GROUND AND THAT PROVOKES A RANGE OF CITIZENS FROM TAXI DRIVERS TO PUB CRAWLERS SOME OF WHOM TAKE IT OUT ON THE BIRDS BRAZIL'S ASSOCIATION FOR THE PRESERVATION OF WILDLIFE HAS HAD TO CONDUCT AN ANTIHARASSMENT CAMPAIGN ON THE MARTINS' BEHALF AND FORMER PRESIDENTS JOSE SARNEY AND FERNANDO COLLOR DE MELLO HAVE ISSUED APPEALS TO BRAZILIANS TO PROTECT THE PURPLE MARTIN BUT WHILE THE BIRDS CLEAR SUGARCANE FIELDS OF INSECTS THEY OTHERWISE ARE PESTS EXPLAINS MR HILL WHO HAS MADE SEVERAL TRIPS TO SOUTH AMERICA TO WATCH THE MARTINS IN ACTION THE PEOPLE WERE SHOOTING THEM UNTIL ECOLOGISTS EXPLAINED THEY WERE BENEFICIAL TO AGRICULTURE ALSO HE SAYS THEY ARE IN BRAZIL CAUSING TROUBLE LESS THAN HALF THE YEAR MUCH OF THE TIME THEY ARE DELIGHTING THE PEOPLE OF GRIGGSVILLE SEE RELATED LETTER LETTERS TO THE EDITOR SKEETER EATERS WSJ JUNE 14 1993 9304300149 YY93 MM06 9306110188 930611 EUROPEAN SOFTWAREPRICING FORMULAS SHORT ON LOGIC DEVELOP A RATIONALE BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL LONDON QUICK WHAT'S THE CHEAPEST WAY TO BUY SOFTWARE IN EUROPE FOR A PERSONAL COMPUTER ORDER IT BY MAIL FROM ANOTHER CONTINENT WHAT'S THE MOST EXPENSIVE WAY BUY IT OFF THE SHELF THOSE ARE AMONG THE BIZARRE FACTS OF LIFE IN THE EUROPEAN SOFTWARE MARKET EXECUTIVES AND ANALYSTS SAY FOR A BEVY OF REASONS THE USBASED COMPANIES THAT DOMINATE THE WORLD INDUSTRY HAVE LONG CHARGED UP TO TWICE AS MUCH IN EUROPE FOR THEIR PRODUCTS AS THEY DO IN THE US HIGHER EUROPEAN LABOR AND DISTRIBUTION COSTS ARE ONE FACTOR BUT SO IS SIMPLE PROFIT MOTIVE WE WERE CHARGING WHAT THE MARKET WOULD BEAR SAYS PETER BAYLEY INTERNATIONAL MARKETING DIRECTOR IN EUROPE FOR LOTUS DEVELOPMENT CORP CAMBRIDGE MASS IN THE PAST YEAR THOUGH EUROPE'S CRAZYQUILT PRICING PATTERNS HAVE BEGUN TO UNRAVEL THOUGH BARGAINS REMAIN A RARITY PRICES FOR SOME BIGSELLING SOFTWARE PACKAGES HAVE GRADUALLY DRIFTED DOWNWARD AND SOFTWARE HOUSES UNDER PRESSURE FROM BARGAINHUNTING MULTINATIONAL CLIENTS ARE MOVING TO STANDARDIZE PRICES LOTUS AND MICROSOFT CORP FOR INSTANCE RECENTLY UNDERTOOK TO SET PRICES THAT DIFFER BY NO MORE THAN 5 FROM ONE EUROPEAN COUNTRY TO THE NEXT EUROPEAN COMPUTER USERS ARE GETTING THEIR ACTS TOGETHER AND PUSHING FOR BETTER DEALS SAYS JEREMY DAVIES SENIOR PARTNER OF CONTEXT LTD A LONDONBASED MARKETRESEARCH FIRM IT'S A GLOBAL INDUSTRY PEOPLE IN FRANCE KNOW WHAT PEOPLE IN GERMANY AND THE UK ARE PAYING AND THIS IS FORCING THEM THE SOFTWARE HOUSES TO BRING RATIONALITY TO THEIR PRICES HE SAYS OF COURSE COMPARED TO THE SAVAGE PRICE WAR THAT HAS SLASHED EUROPEAN PC HARDWARE PRICES BY UP TO 70 IN 12 MONTHS WHAT'S HAPPENING AMONG SOFTWARE MAKERS IS A GENTLEMANLY GAME OF CHESS AND THE STRANGE SHAPE OF THE PLAYING BOARD IS READILY SEEN IN INDUSTRY PRICE STATISTICS INDUSTRY EXECUTIVES SAY HIGHER EUROPEAN LABOR DISTRIBUTION AND LANGUAGETRANSLATION COSTS JUSTIFY A 15 TO 25 MARKUP IN EUROPE THAT LEAVES LOTS OF LEEWAY FOR PRICE CUTS BUT THE INDUSTRY IS DOMINATED BY A HANDFUL OF USBASED HOUSES AND THERE IS SCANT EUROPEAN COMPETITION WHAT PRICECUTTING THAT EUROPE HAS SEEN LATELY IS MAINLY AN ECHO OF MARKETSHARE BATTLES THE US GIANTS ARE FIGHTING AT HOME THUS A SERIES OF USSTYLE SPECIAL PROMOTIONS REDUCEDPRICE SOFTWARE UPGRADES AND HARDWARESOFTWARE BUNDLES HAS PRODUCED SOME BIG BARGAINS FOR SAVVY SOFTWARE SHOPPERS IN EUROPE FOR INSTANCE THE LOWEST PRICE QUOTES IN FRANCE FOR BORLAND INTERNATIONAL INC'S BIGSELLING DBASE DATABASE PROGRAM HAS FALLEN 19 IN SIX MONTHS TO 3380 FRENCH FRANCS 61445 IN MAY FROM 4170 FRANCS CONTEXT ESTIMATES IN THE SAME PERIOD IN GERMANY THE AVERAGE STREET PRICE FOR MICROSOFT'S POPULAR EXCEL SPREADSHEET PROGRAM FELL 8 TO 880 MARKS 53821 CONTEXT SAYS THE BIGGEST SAVINGS HAVE BEEN TO CORPORATE BUYERS UNDER ITS MAJOR ACCOUNTS PROGRAM FOR INSTANCE LOTUS OFFERS A DISCOUNT OF 60 OR MORE WHEN AN ORDER RUNS INTO THE THOUSANDS OF COPIES AT THE SAME TIME LOTUS HAS JOCKEYED ITS PRICES RAISING SOME AND LOWERING OTHERS TO REDUCE DIFFERENCES FROM COUNTRY TO COUNTRY SUCH CROSSBORDER DISPARITIES HAD CAUSED HEADACHES FOR MULTINATIONAL COMPANIES MAKING GLOBAL PURCHASES WE'RE TRYING TO BE EASIER TO DO BUSINESS WITH LOTUS'S MR BAYLEY SAYS SEVERAL BIG MANUFACTURERS HAVE FOLLOWED LOTUS IN REVISING THEIR EUROPEAN PRICE LISTS TO GIVE HIGHVOLUME PURCHASERS BIGGER DISCOUNTS HOWEVER IF CUSTOMERS AND COMPETITORS AREN'T MOTIVATION ENOUGH FOR THE SOFTWARE HOUSES THERE'S ALWAYS ANOTHER PROD EUROPEAN GOVERNMENTS EARLIER THIS YEAR GERMANY'S POWERFUL ANTITRUST REGULATORS SENT A LETTER TO THE SIX LARGEST US SOFTWARE HOUSES COMPLAINING THAT SOME OF THEIR PUBLISHED LIST PRICES WERE MORE THAN 20 HIGHER THAN ACTUAL STREET PRICES WHICH REGULATORS SAID MIGHT MISLEAD CONSUMERS THE COMPANIES REACTED PROMPTLY SOME CUT THEIR RECOMMENDED RETAIL PRICES WHILE OTHERS STOPPED PUBLISHING PRICES ALTOGETHER 9306110187 930611 RATE OF NEW INCORPORATIONS INCREASED 61 LAST YEAR NEW YORK NEW BUSINESS INCORPORATIONS ROSE 61 LAST YEAR THE FIRST ANNUAL INCREASE SINCE NEW INCORPORATIONS PEAKED IN 1986 DUN & BRADSTREET CORP SAID THE YEAR ALSO ENDED ON A STRONG NOTE D&B NOTED IN DECEMBER THE NUMBER OF NEW INCORPORATIONS ROSE 137 TO 60214 FROM DECEMBER 1991 FOR THE YEAR NEW INCORPORATIONS INCREASED TO 666800 FROM 628604 THE PEAK YEAR 1986 SAW 702738 NEW INCORPORATIONS EXCEPT FOR A SLIGHT DECLINE IN NEW ENGLAND ALL NINE US CENSUS REGIONS REPORTED INCREASES IN NEW BUSINESS INCORPORATIONS IN 1992 THE EAST NORTH CENTRAL STATES HAD THE GREATEST INCREASE 101 FOLLOWED BY THE SOUTH ATLANTIC UP 73 SAID D&B A PROVIDER OF BUSINESS INFORMATION SERVICES DURING 1992 44 STATES REPORTED INCREASES IN NEW BUSINESS INCORPORATIONS WITH MONTANA SHOWING THE SHARPEST GAIN UP 239 TO 1948 FLORIDA REPORTED THE GREATEST NUMBER OF NEW INCORPORATIONS 86037 FOLLOWED BY NEW YORK WITH 67503 AND CALIFORNIA WITH 36973 9306110186 930611 GRUPO FERROMINERO ACQUISITION MEXICO CITY MEXICO'S TREASURY DEPARTMENT SAID IT SOLD A MAJORITY STAKE IN AN IRON MANGANESE PRODUCER TO GRUPO FERROMINERO SA FOR 719 MILLION NEW PESOS 23 MILLION THOUGH COMPANIA MINERA AUTLAN SA IS VALUED AT 623 MILLION NEW PESOS ON THE BOOKS FERROMINERO IS TAKING ON THE FORMER STATEOWNED ENTERPRISE'S DEBT THE TREASURY SAID RESULTING IN THE LOWER PURCHASE PRICE FERROMINERO WHICH BOUGHT 827 OF THE COMPANY ALSO AGREED TO INVEST 66 MILLION IN AUTLAN DURING THE NEXT FIVE YEARS FERROMINERO WILL ALSO EXAMINE A POSSIBLE ALLIANCE WITH A FOREIGN INVESTOR THE TREASURY ADDED IN 1992 AUTLAN HAD OPERATING PROFIT OF 177 MILLION NEW PESOS AND NET PROFIT OF ONLY 49 MILLION NEW PESOS 9306110185 930611 FRENCH CURRENT ACCOUNT SURPLUS PARIS FRANCE'S DEFINITIVE CURRENT ACCOUNT SURPLUS WAS 193 BILLION FRANCS 351 BILLION IN 1992 AFTER A DEFICIT OF 345 BILLION FRANCS IN 1991 THE ECONOMICS MINISTRY SAID THE SURPLUS REPRESENTS 03 OF FRANCE'S GROSS DOMESTIC PRODUCT THE LAST TIME FRANCE POSTED A CURRENT ACCOUNT SURPLUS WAS IN 1986 THE SURPLUS THAT YEAR WAS 127 BILLION FRANCS 9306110184 930611 CONTAINER SHIP PLANT IN KOREA IS STRUCK SPECIAL TO THE WALL STREET JOURNAL SEOUL SOUTH KOREA THOUSANDS OF WORKERS STRUCK A MAJOR KOREAN CONTAINER SHIP FACTORY DEMANDING A NEW WAGE CONTRACT HYUNDAI PRECISION & INDUSTRY CO SAID THE STRIKE FOLLOWED A VOTE BY 3772 UNION MEMBERS ABOUT 70 OF THE WORKERS APPROVED THE WALKOUT IT SAID THE COMPANY IS A SUBSIDIARY OF SOUTH KOREA'S HYUNDAI GROUP IT PRODUCES CONTAINER SHIPS AND JEEPS IN THE SOUTHEASTERN PORT CITY OF ULSAN LABOR DISPUTES AT THE FACTORY BEGAN LAST SATURDAY WHEN 500 WORKERS STARTED A RALLY TO PROTEST AN EARLIER AGREEMENT BETWEEN UNION LEADERS AND THE COMPANY'S MANAGEMENT ON A 47 PAY INCREASE WORKERS SAID THE AGREEMENT WAS VOID BECAUSE IT LACKED APPROVAL BY A MAJORITY OF UNION MEMBERS THEY CALLED FOR NEW NEGOTIATIONS BUT THE COMPANY REJECTED THE DEMAND 9306110183 930611 SOFTWARE TOOLWORKS POSTS QUARTERLY LOSS AND NAMES NEW CHIEF NOVATO CALIF SOFTWARE TOOLWORKS INC REPORTED AN UNEXPECTED NET LOSS OF 451000 OR TWO CENTS A SHARE FOR ITS FOURTH QUARTER ENDED MARCH 31 AND NAMED A NEW CHIEF EXECUTIVE OFFICER THE QUARTERLY RESULTS WERE WELL BELOW SOME ANALYSTS' ESTIMATES WHICH HAD PUT NET INCOME IN THE QUARTER IN THE RANGE OF SEVEN CENTS A SHARE FOR THE MAKER OF EDUCATIONAL ENTERTAINMENT AND MULTIMEDIA SOFTWARE INVESTORS DEMONSTRATED THEIR DISAPPOINTMENT BY DRIVING SOFTWARE TOOLWORKS' STOCK DOWN 1125 OR 10 TO 9875 IN LATE OVERTHECOUNTER TRADING IN THE YEAREARLIER QUARTER THE COMPANY HAD A NET LOSS OF 16 MILLION OR 63 CENTS A SHARE REVENUE FOR THE LATEST QUARTER ROSE 20 TO 278 MILLION FROM 231 MILLION A YEAR AGO BEN Z ROSE AN ANALYST WITH HANCOCK INSTITUTION EQUITY SERVICES INC SAID THE COMPANY WAS HURT IN THE QUARTER BY ITS CONTINUED DEPENDENCE ON SOME LOWERPROFIT MARGIN PRODUCTS FOR A SUBSTANTIAL PORTION OF SALES AS WELL AS MORE CONSERVATIVE PROVISIONS FOR RETURNED PRODUCTS AMONG OTHER THINGS FOR THE FULL FISCAL YEAR NET INCOME WAS 35 MILLION OR 12 CENTS A SHARE COMPARED WITH A YEAREARLIER LOSS OF 145 MILLION OR 59 CENTS A SHARE REVENUE FOR THE FULL YEAR ROSE ABOUT 17 TO 1196 MILLION FROM 1026 MILLION THE COMPANY ALSO SAID BOB LLOYD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE HE SUCCEEDS LES CRANE FOUNDER OF THE COMPANY WHO RETAINS HIS POSITION AS CHAIRMAN THE COMPANY SAID MR LLOYD'S PROMOTION RECOGNIZES HIS ROLE IN HELPING TURN AROUND SOFTWARE TOOLWORKS RESULTS MR CRANE SAID THAT THE COMPANY HAS MOVED BEYOND THE ENTREPRENEURIAL STAGE AND THAT MR LLOYD IS WELLEQUIPPED TO CHART THE COMPANY'S FURTHER EXPANSION 9306110182 930611 CORPORATE FOCUS PARKER & PARSLEY BUYS RESERVES AND LOOKS FOR MORE ACQUISITION OF PRUDENTIAL PROPERTIES DOESN'T MEAN END OF GROWTH STRATEGY BY LAURA JOHANNES STAFF REPORTER OF THE WALL STREET JOURNAL MIDLAND TEXAS IN THE FOUR YEARS SINCE A MANAGEMENTLED BUYOUT FREED PARKER & PARSLEY PETROLEUM CO FROM DEBTRIDDEN PARENT SOUTHMARK CORP THE COMPANY'S STRATEGY OF BUYING UP RESERVES HAS TRANSFORMED IT INTO THE 13THLARGEST INDEPENDENT OIL AND NATURALGAS PRODUCER IN THE NATION NOW PARKER & PARSLEY IS PREPARED TO LEAP INTO EIGHTH PLACE WITH ITS BIGGEST ACQUISITION EVER A 508 MILLION PURCHASE OF 35 DISTRESSED OIL AND GAS PARTNERSHIPS SPONSORED BY PRUDENTIAL INSURANCE CO OF AMERICA'S PRUDENTIAL SECURITIES INC BUT EVEN THAT BIG GULP WON'T QUENCH PARKER & PARSLEY'S THIRST FOR MORE COMPANY OFFICIALS ARE CONVINCED THAT THE KEY TO CONTINUED HEALTH IS TO STAY ON THE PROWL FOR NEW RESERVES ALL THE TIME MOSTLY FROM MAJOR PRODUCERS EXITING FROM THE US MARKET AND THEN TO SLASH OPERATING COSTS TO MAKE THE ACQUISITIONS MORE PROFITABLE THE LATEST PLANNED PURCHASE WON'T LIKELY STAND IN THE WAY OF FURTHER GROWTH ALTHOUGH IT RAISED ITS OFFER TO WIN A BIDDING WAR WITH LOUIS DREYFUS GROUP'S LOUIS DREYFUS NATURAL GAS CORP PARKER & PARSLEY AGREED TO SELL ITS RIVAL ABOUT 157 MILLION OF THE DISPUTED PROPERTIES SETTLING A LAWSUIT BETWEEN THE TWO THAT SALE IN PARTICULAR KEEPS THE COMPANY'S FINANCING IN ORDER AND WILL ALLOW IT TO CONTINUE STAKING CLAIM TO NEW PROPERTIES THE LOVELY THING ABOUT THE WAY THIS WORKED OUT IS THAT WE ARE LEFT WITH SIGNIFICANT FINANCING ABILITY SAID PARKER & PARSLEY'S VICE CHAIRMAN HERBERT C WILLIAMSON III WE'RE STILL ACQUISITIVE BY AND LARGE ANALYSTS APPLAUD THE STRATEGY THEY NOTE THAT PARKER & PARSLEY WILL CARRY JUST OVER 500 MILLION IN DEBT AFTER THE DEAL INCLUDING ABOUT 22 MILLION IT INHERITED WITH THE PARTNERSHIPS NOT ONLY CAN PARKER & PARSLEY USE THE MONEY FROM LOUIS DREYFUS TO BUY OTHER OIL AND GAS PROPERTIES IT CAN ALSO USE THE PRUDENTIAL RESERVES AS COLLATERAL FOR NEW CREDIT PARKER & PARSLEY HASN'T YET SPECIFIED WHICH PROPERTIES WILL GO TO DREYFUS BUT THE REMAINING ASSETS WILL BOOST THE COMPANY'S PROVEN RESERVES 60 TO 202 MILLION BARREL OIL EQUIVALENTS THE ADDITION WOULD VAULT IT PAST SEAGULL ENERGY CORP MITCHELL ENERGY & DEVELOPMENT CORP UNIMAR CO APACHE CORP AND LOUISIANA LAND & EXPLORATION CO TO EIGHTH PLACE IN RESERVE RANKINGS ACCORDING TO YEAREND FIGURES FROM ARTHUR ANDERSEN IT WOULD ALSO INCREASE THE VALUE OF RESERVES TO WELL OVER A BILLION DOLLARS GIVEN THE TREND OF THE MAJORS TO DIVEST OF PROPERTIES IN THE LOWER 48 STATES WE'RE TRYING TO DO THE BEST WE CAN TO ACQUIRE THOSE PROPERTIES AND EXPLOIT THEM SAID SCOTT DSHEFFIELD CHIEF EXECUTIVE EXPLOITING THE PRUDENTIAL PROPERTIES WILL MEAN MORE THAN JUST TURNING ON A SPIGOT THE PARTNERSHIPS OFFERED BY PRUDENTIAL SECURITIES IN THE 1980S SOURED AFTER INVESTMENTS WERE HURT BY TAXLAW CHANGES AND A SLUMP IN THE ENERGY INDUSTRY AFTER THE PARKER & PARSLEY PURCHASE INVESTORS WOULD EFFECTIVELY GET ABOUT 79 CENTS A DOLLAR ON THEIR ORIGINAL 145 BILLION INVESTMENT PARKER & PARSLEY BELIEVES IT CAN INCREASE PROFITABILITY ON THE PRUDENTIAL PROPERTIES THROUGH ECONOMIES OF SCALE CUTTING GENERAL ADMINISTRATIVE EXPENSES TO ABOUT 5 MILLION A YEAR FROM THE MORE THAN 30 MILLION THAT THE PREVIOUS GENERAL PARTNER GRAHAM ROYALTY LTD SPENT MR WILLIAMSON SAID FURTHERMORE PARKER & PARSLEY BECAUSE IT HAS NO OBLIGATION TO PAY REGULAR DIVIDENDS TO INVESTORS CAN AFFORD TO DRILL MORE WELLS AND DEVELOP THE PROPERTIES TO THEIR FULL POTENTIAL HE SAID SOME ANALYSTS SUGGEST THAT PARKER & PARSLEY IS GETTING THE PROPERTIES AT A DISCOUNT PAYING AN APPROXIMATE PRICE OF 450 A BARREL OF OIL EQUIVALENT I THINK THEY'VE DONE WELL SAID JOHN SELSER OF HOWARD WEIL LABOUISEE FRIEDRICHS INC THE PRUDENTIAL ACQUISITION WILL GIVE PARKER & PARSLEY A BOOST IN OTHER AREAS AS WELL FOR ONE IT WILL HELP THE COMPANY STRENGTHEN ITS HOLDINGS IN THE SPRAYBERRY FIELD IN WEST TEXAS WHERE THE MAJORITY OF ITS CURRENT RESERVES ARE LOCATED AND DIVERSIFY GEOGRAPHICALLY BEYOND THAT FOR ANOTHER THE PROPERTIES WILL TIP THE COMPANY'S RESERVE BALANCE TO ABOUT 54 OIL VS 46 GAS CURRENTLY RESERVES ARE ABOUT 63 OIL A LESSTHANDESIRABLE MIX SINCE NATURAL GAS PRICES ARE RISING FASTER WHILE THE COMPANY'S OIL PRODUCTION WILL INCREASE BY ABOUT 50 IN THE YEAR AFTER THE MERGER DAILY GAS PRODUCTION IS EXPECTED TO MORE THAN DOUBLE THAT HELPS THE PERCEPTION ON WALL STREET BECAUSE GAS IS EVERYBODY'S FAVORITE NOW SAYS RICHARD P STRALEY AN ANALYST AT STEPHENS INC INDEED SO FAR THE TRANSACTION HAS BEEN WELLRECEIVED BY INVESTORS ON MONDAY THE DAY IT WAS ANNOUNCED PARKER & PARSLEY STOCK SHOT UP 10 CLOSING AT 30125 A 52WEEK HIGH AFTER A DECISION TUESDAY BY SALOMON BROTHERS INC TO LOWER THE STOCK TO A HOLD FROM A BUY THE STOCK DROPPED SEVERAL POINTS AND IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY THE STOCK CLOSED AT 27625 DOWN 375 CENTS SALOMON ANALYST THOMAS R DRISCOLL SAID HIS DOWNGRADE WAS PURELY PRICE BASED AND DOESN'T REFLECT ANY NEW CONCERNS ABOUT THE COMPANY OR ITS MANAGEMENT WE HAD A 12MONTH TARGET PRICE OF 3050 AND THAT TARGET IS NOW MET MARK KELLSTROM OF PAINEWEBBER INC ARGUES THAT PARKER & PARSLEY WILL BE A MID30S STOCK BECAUSE CASH FLOW PER SHARE IS HIGH AND THE COMPANY HAS GOOD MANAGEMENT THAT KNOWS HOW TO CREATE VALUE ALL OF THAT IS GOOD NEWS FOR PARKER & PARSLEY'S TOP EXECUTIVES WHO OWN 75 OF ALL SHARES PUT ANOTHER WAY THEY HAVE 99 OF THEIR PERSONAL NET WORTHS TIED UP IN THE COMPANY'S STOCK THANKS TO THE 1989 LEVERAGED BUYOUT FROM SOUTHMARK ONE REASON FOR THE BUYOUT WAS THAT SOUTHMARK'S DEBTS WOULD HAVE MADE IT DIFFICULT TO NEGOTIATE THE CREDIT LINES NEEDED FOR RAPID EXPANSION SAYS MR SHEFFIELD A 40YEAROLD PETROLEUM ENGINEER WHO WORKED HIS WAY UP TO THE TOP SPOT AT PARKER & PARSLEY BEING FREE OF SOUTHMARK WAS GREAT BECAUSE THE COMPANY WAS RUN IN A WAY THAT WAS COMPLETELY CONTRARY TO OUR VISION SAID MR SHEFFIELD WE SUSPECTED IT WAS LIKE A HOUSE OF CARDS READY TO FALL AND WE WERE GLAD TO GET OUT THIS YEAR PARKER & PARSLEY HAS BEEN CONTINUING ITS STRATEGY OF LOWRISK DEVELOPMENT DRILLING MR SHEFFIELD ESTIMATED THAT 300 DEVELOPMENT WELLS WILL BE DRILLED IN 1993 THE COMPANY MOSTLY STEERS CLEAR OF WILDCATTING VENTURES WHICH HAVE POTENTIAL FOR ENORMOUS GAINS BUT ARE MUCH RISKIER THAN DRILLING NEAR WELLS THAT ARE ALREADY PRODUCING OIL PARKER & PARSLEY WHICH OWNS ABOUT 4400 PRODUCING OIL AND GAS WELLS IN THE US SAW ITS 1992 PRODUCTION SOAR 81 TO 47 MILLION BARRELS OF OIL IN JANUARY PARKER & PARSLEY JUMPED A PSYCHOLOGICAL HURDLE BY EARNING A SPOT ON THE NEW YORK STOCK EXCHANGE THAT SUCCESS ALSO IS REFLECTED IN ITS RECENT EARNINGS EARNINGS PARTLY REFLECTING THE COMPANY'S AGGRESSIVE DRILLING PROGRAM REVENUE FOR THE FIRST QUARTER OF 1993 HIT 567 MILLION WITH NET INCOME UP 69 TO 6 MILLION BEFORE AN ACCOUNTING CHANGE 9306110181 930611 MERRILL LYNCH FUND PURCHASES SUBSIDIARY OF SWEDEN'S ALFALAVAL LONDON A LEVERAGED BUYOUT FUND SET UP BY MERRILL LYNCH INTERNATIONAL LTD HAS BOUGHT BRAN & LUEBBE A SUBSIDIARY OF SWEDISH GROUP ALFALAVAL AB BRAN & LUEBBE BASED IN NORDERSTEDT GERMANY MAKES SPECIALTY EQUIPMENT FOR LABORATORIES AND INDUSTRY AS WELL AS ENVIRONMENTAL EQUIPMENT THE FUND NORTH EUROPEAN ACQUISITION FUND PAID 210 MILLION MARKS 1284 MILLION FOR THE COMPANY WHICH MERRILL LYNCH SAYS IS THE LARGEST LEVERAGED BUYOUT IN GERMANY IN THE PAST THREE YEARS THE DIVESTITURE IS PART OF A STRATEGY BY TETRA PAK GROUP ALFALAVAL'S PARENT TO CONCENTRATE ON ITS CORE ACTIVITIES THE MANAGERS CWB CAPITAL PARTNERS LTD RECENTLY CLOSED THE FUND AT 167 MILLION 2531 MILLION MAKING IT THE LARGEST OF ITS TYPE IN EUROPE FOR TWO YEARS BANK FINANCE IS BEING PUT UP BY DRESDNER BANK AG DEUTSCHE BANK AG AND CITIBANK AG RICHARD HANSON OF CWB HAS BEEN APPOINTED AS CHAIRMAN OF BRAN & LUEBBE ALSO A GOLDMAN SACHS INTERNATIONAL FUND RHEIN DONAU CAPITAL PARTNERS HAS TAKEN A SUBSTANTIAL MINORITY HOLDING IN THE COMPANY HANCOCK INTERNATIONAL PRIVATE EQUITY PARTNERS ALSO HAVE A HOLDING 9306110180 930611 WORLD MARKETS TOKYO EQUITIES STRETCH LOSING STREAK TO FOUR LONDON SHARES DECLINE AS POLITICAL ROW FLARES A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES IN TOKYO FELL FOR A FOURTH CONSECUTIVE SESSION THURSDAY IN EXTREMELY THIN TRADING AS TECHNICAL MARKET FACTORS AND THE JAPANESE CURRENCY'S MUSCLE KEPT INVESTORS AT BAY LONDON SHARES FELL AS PARTICIPANTS RAN FROM BRITISH POLITICAL UNCERTAINTIES WHEN THE MARKET WAS AT THE DAY'S PEAK WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10761 UP 012 REFLECTING INCREASES IN MARKETS IN EUROPE AND THE ASIA/PACIFIC REGION AND A DROP IN THE AMERICAS PHARMACEUTICALS STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 7744 UP 099 OR 13 WITH SYNTEX OF THE US POSTING A 33 GAIN IN ITS LOCAL CURRENCY ENTERTAINMENT STOCKS TRAILED AT 14254 DOWN 2 OR 14 WITH TIME WARNER OF THE US SLIDING 23 IN LOCAL CURRENCY IN TOKYO FOLLOWING A WEDNESDAY HOLIDAY FOR A JAPANESE IMPERIAL WEDDING THE NIKKEI 225STOCK INDEX WHICH SLUMPED 26895 POINTS TUESDAY FELL 8192 TO 2049332 ON FRIDAY IN TOKYO THE NIKKEI INDEX ROSE 9799 POINTS TO CLOSE THE MORNING SESSION AT 2059131 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 270 MILLION SHARES DOWN SHARPLY FROM 3604 MILLION SHARES TUESDAY TO THE LOWEST LEVEL SINCE MARCH 4 WHEN THE NIKKEI BEGAN A RUN UP FROM 1675961 LOSERS OUTNUMBERED GAINERS678336 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH FELL 1682 POINTS TUESDAY EASED 277 TO 165226 TRADING WAS DEPRESSED BY RECURRING THEMES IN TOKYO THE YEN SURGED TO A HISTORICAL HIGH AGAINST THE US DOLLAR AND CAUTION CONTINUED AHEAD OF FRIDAY'S SPECIAL QUOTATION TO SETTLE JUNE FUTURESCONTRACT PRICES AND THE RELEASE OF THE JAPANESE CENTRAL BANK'S SURVEY OF BUSINESS SENTIMENT THOUGH MOST INVESTORS ALREADY HAD ROLLED THEIR JUNE FUTURES OVER TO THE SEPTEMBER CONTRACT DESPITE THE JAPANESE CURRENCY'S STRENGTH EXPORTERS' SHARES AFTER WEEKS OF DRIFTING LOWER SUSTAINED LITTLE DAMAGE THE ECONOMIC PLANNING AGENCY'S ANNOUNCEMENT THURSDAY THAT THE JAPANESE ECONOMY'S SLOWDOWN HAS BOTTOMED OUT DID NOTHING TO BOOST MARKET SENTIMENT PARTICIPANTS SAID THE AGENCY UNDERESTIMATED THE EFFECT OF THE YEN'S RISE ON THE ECONOMY A STANCE THEY SAID SHOWS THAT THE GOVERNMENT ISN'T WILLING TO TAKE NEW STIMULATIVE STEPS SUCH AS CUTS IN INTEREST RATES OR TAXES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX FELL 69 POINTS TO 28600 THE FT 30STOCK INDEX EASED 20 POINTS TO 22385 VOLUME WAS 6202 MILLION SHARES COMPARED WITH 6912 MILLION SHARES A DAY EARLIER INVESTORS FLED IN REACTION TO COMMENTS IN THE HOUSE OF COMMONS WEDNESDAY BY NORMAN LAMONT WHO HAD BEEN DUMPED AS CHANCELLOR OF THE EXCHEQUER BY PRIME MINISTER JOHN MAJOR MR LAMONT SAID MR MAJOR REACTS TO EVENTS RATHER THAN SHAPING THEM REMARKS THAT WERE VIEWED AS UNUSUALLY VICIOUS THOUGH THEY DID CALL INTO QUESTION THE PRIME MINISTER'S POLITICAL FUTURE WHEN THE 100STOCK INDEX APPROACHED THE DAY'S TOP OF 28709 INVESTORS TOOK PROFITS AS SOME DIDN'T SEE FUNDAMENTALS IN PLACE FOR A RISING MARKET AND BELIEVED HOPES FOR LOWER INTEREST RATES WERE UNWARRANTED INVESTORS ALSO AWAITED TODAY'S US REPORT ON PRODUCER PRICE INFLATION A HIGHERTHANEXPECTED NUMBER COULD FIRE INFLATIONARY FEARS AND EXPECTATIONS FOR HIGHER US INTEREST RATES WHICH IN TURN WOULD HURT WALL STREET AND DAMP THE BRITISH STOCK MARKET IN PARIS STOCKS WEAKENED SLIGHTLY ON LATE PROFITTAKING FOLLOWING THE PREVIOUS THREE DAYS' GAINS MILAN SHARES RALLIED THOUGH MUCH OF THE CLIMB WAS TECHNICALLY BASED AS SHORT POSITIONS WERE COVERED AHEAD OF TRADING DEADLINES NEXT WEEK IN SELLING SHORT INVESTORS SELL BORROWED STOCK IN A STRATEGY TO BUY IT BACK LATER AT A LOWER PRICE PROFITING BY REPLACING THE HIGHERPRICED BORROWED STOCK IN MADRID STOCKS GAINED LED BY BLUE CHIPS THAT REBOUNDED FROM LOSSES EARLIER THIS WEEK IN STOCKHOLM SHARES CLOSED LITTLE CHANGED TO HIGHER DESPITE DISAPPOINTMENT ABOUT THE SWEDISH CENTRAL BANK'S FAILURE TO REDUCE ITS KEY LENDING RATE AS HAD BEEN EXPECTED SYDNEY STOCKS ENDED A LOSING STREAK STRENGTHENED BY A RISE IN THE AUSTRALIAN DOLLAR BUT FINISHED ONLY SLIGHTLY HIGHER AS GOLD STOCKS CONTINUED TO RETREAT HONG KONG SHARES SLUMPED ON PROFITTAKING TAIPEI PRICES FELL WITH FINANCIAL ISSUES DROPPING THE MOST DESPITE POSITIVE EARNINGS REPORTS IN THE COMMERCIAL BANKING SECTOR IN SEOUL A THREEDAY BULL RUN ENDED AND STOCKS FELL MANILA EQUITIES EDGED LOWER AS THE MARKET CONTINUED ITS CORRECTION WELLINGTON PRICES EASED FOR THE THIRD CONSECUTIVE SESSION OF LOSSES ON PROFITTAKING AMONG CORPORATE DEVELOPMENTS IN TOKYO SHIONOGI ROSE 10 YEN TO 1030 YEN 968 THE PHARMACEUTICAL COMPANY'S CONSOLIDATED PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 SWELLED 29 TO 24 BILLION YEN 2255 MILLION FROM A YEAR EARLIER DESPITE A SEVERE BUSINESS ENVIRONMENT IN WHICH THE JAPANESE GOVERNMENT MANDATED DRUGPRICE CUTS AVERAGING 81 IN PARIS LVMH MOET HENNESSY LOUIS VUITTON DROPPED 27 FRENCH FRANCS TO 3683 FRANCS 66953 THE LUXURYGOODS AND SPIRITS CONCERN PREDICTED 1993 PROFIT OF ABOUT THE YEAREARLIER LEVEL OF 301 BILLION FRANCS 5472 MILLION DESPITE LVMH'S FORECAST FOR A DECLINE IN FIRSTHALF NET INCOME IN AMSTERDAM AHOLD EDGED UP 020 GUILDER TO 9290 GUILDERS 5066 THE FOOD RETAILER'S EARNINGS FOR THE 16 WEEKS ENDED APRIL 25 ROSE 13 TO 962 MILLION GUILDERS 525 MILLION LARGELY BECAUSE OF HIGHER OPERATING PROFIT FROM ACQUISITIONS IN MILAN FERRUZZI FINANZIARIA SKIDDED 24 LIRE OR 29 TO 805 LIRE 54 US CENTS THE AGROINDUSTRIAL CHEMICAL AND FOOD GIANT SAID IT WOULDN'T ASK ITALIAN STOCK MARKET REGULATORS TO SUSPEND TRADING IN THE COMPANY'S SHARES WHICH HAVE BEEN UNDER HEAVY PRESSURE SINCE FERRUZZI DISCLOSED DEBT OF MORE THAN 15 TRILLION LIRE 1008 BILLION A GROUP OF CREDITOR BANKS WAS TRYING TO FORM A RESCUE PACKAGE INVOLVING A RESTRUCTURING HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9306110179 930611 INTERNATIONAL ITALY ARRESTS TWO EXECUTIVES OF BULL PHILIPS BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN MORE FOREIGN MULTINATIONALS ARE BEING DRAGGED INTO ITALY'S WIDENING BRIBERY SCANDALS WITH THE ARRESTS YESTERDAY OF EXECUTIVES OF PHILIPS ELECTRONICS NV OF THE NETHERLANDS AND CIE DES MACHINES BULL OF FRANCE ON CORRUPTION CHARGES GIUSEPPE CARDINALI A ROMEBASED MANAGER AT THE FRENCH COMPUTER MAKER'S BULL ITALIA SUBSIDIARY AND EZIO MARIA LANCIA A ROMEBASED MANAGER OF DUTCH ELECTRONICS GIANT PHILIPS WERE CHARGED WITH PAYING KICKBACKS TO OBTAIN CONTRACTS TO SUPPLY VIDEOSCREEN SYSTEMS AND OTHER COMPUTER EQUIPMENT TO JUSTICE MINISTRY LAW COURTS FRANCO CASTIGLIONI A FORMER JUSTICE MINISTER ALSO IS UNDER INVESTIGATION HIS SECRETARY WAS ARRESTED ON SIMILAR CHARGES EARLIER THIS WEEK A SPOKESMAN FOR BULL IN PARIS SAID THE COMPANY CONDEMNS ANY UNETHICAL BEHAVIOR BY EMPLOYEES THE COMPANY COMPLIES WITH ALL LAWS AND REGULATIONS IN EACH COUNTRY IN WHICH IT DOES BUSINESS AND REQUIRES ITS EMPLOYEES TO DO LIKEWISE THE SPOKESMAN SAID PHILIPS SAID IT WASN'T AWARE OF THE DETAILS IN THE CASE A COMPANY SPOKESMAN IN THE NETHERLANDS WOULD SAY ONLY THAT MR LANCIA IS A ROMEBASED EXECUTIVE IN CHARGE OF EXTERNAL RELATIONS BUT ISN'T A SENIOR MANAGER LAST MONTH MAGISTRATES BEGAN UNCOVERING EVIDENCE OF SYSTEMATIC KICKBACKS BY MULTINATIONAL GROUPS TO ITALIAN STATE OFFICIALS TO OBTAIN PUBLIC CONTRACTS IN THE 1980S SEVERAL EXECUTIVES INCLUDING CARLO DE BENEDETTI CHAIRMAN OF ING C OLIVETTI & CO HAVE SAID COMPANIES WERE FORCED TO PAY KICKBACKS OR ELSE BE EXCLUDED FROM BUSINESS INDEED BRIBERY CASES HAVE BECOME SO COMMONPLACE THAT A FEW COMPANIES HAVE TRIED TO STAND OUT BY ISSUING STATEMENTS THAT THEY HAVEN'T PAID BRIBES SO FAR THE CORRUPTION SCANDAL WHICH HAS ENTANGLED POLITICIANS CIVIL SERVANTS AND CORPORATE EXECUTIVES HAS RESULTED IN THE ARREST OR INVESTIGATION OF SEVERAL THOUSAND PEOPLE ALMOST ALL ITALIAN NOW INVESTIGATIONS INTO FOREIGN COMPANIES HAVE PICKED UP STEAM THE CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE ITALIAN UNIT OF SIEMENS AG WAS ARRESTED LAST MONTH AS WERE THE MANAGING DIRECTOR OF SWEDEN'S TELEFON AB LM ERICSSON AND AN EXECUTIVE OF MARCONI SPA A SUBSIDIARY OF BRITAIN'S GENERAL ELECTRIC CO THE UK'S GEC IS UNRELATED TO GENERAL ELECTRIC OF THE US THOSE ARRESTS RELATED TO ALLEGED KICKBACKS FOR EQUIPMENT CONTRACTS TO ITALY'S STATEOWNED LONGDISTANCE TELEPHONE SERVICES COMPANY 9306110178 930611 FAR EAST CONSORTIUM TO JOINTLY DEVELOP SITE ON CHINESE ISLAND SPECIAL TO THE WALL STREET JOURNAL HONG KONG FAR EAST CONSORTIUM INTERNATIONAL LTD HONG KONG SAID IT WILL JOINTLY DEVELOP A 408000SQUAREYARD SITE ON AN ISLAND NEAR THE COLONY BUT IN CHINA WITH AN INVESTMENT OF THREE BILLION HONG KONG DOLLARS US3881 MILLION THE PROPERTY ON GUISHAN ISLAND CHINA WILL BE JOINTLY BUILT WITH A MAINLAND PARTNER ZHUHAI INTERNATIONAL CO LTD FAR EAST CONSORTIUM SAID TWO DEVELOPMENTS ARE INVOLVED IN THE PROJECT AND THAT IT OWNS MAJORITY STAKES IN BOTH THE FIRST 70 OWNED BY FAR EAST CONSORTIUM WILL CONSIST OF 60 HIGHRISE RESIDENTIAL BLOCKS WITH RECREATIONAL FACILITIES AND SHOPPING PLANS CALL FOR COMPLETING THE PROJECT IN FIVE TO SEVEN YEARS OVER FIVE PHASES WORK HAS BEGUN AND THE FIRST UNIT SHOULD GO ON SALE THIS YEAR THE SECOND PROJECT 80 OWNED BY THE HONG KONG COMPANY CONSISTS OF A 21FLOOR HOTEL AND SIX 30STORY RESIDENTIAL BLOCKS GUISHAN ISLAND IS THE CLOSEST ISLAND TO HONG KONG LOCATED 17 MILES FROM THE COLONY'S CENTRAL BUSINESS DISTRICT THE COMPANY WHICH WILL AIM THE RESIDENTIAL UNITS AT HONG KONG AND CHINESE BUYERS EXPECTS TO HAVE IMPROVED SEA LINKS TO HONG KONG AND SPECIAL FASTCLEARANCE BORDER CONTROL FOR NONCHINESE ENTRY 9306110176 930611 CZECHS TO COMPLETE MASS PRIVATIZATION OF COMPANIES TO MILLIONS OF HOLDERS BY NEIL KING SPECIAL TO THE WALL STREET JOURNAL PRAGUE CZECH REPUBLIC AFTER MONTHS OF DELAY AND POLITICAL SQUABBLING THE CZECH REPUBLIC IS FINALLY CEDING CONTROL OF MORE THAN 1000 COMPANIES TO THE MILLIONS OF SHAREHOLDERS WHO BOUGHT INTO CZECHOSLOVAKIA'S MASS PRIVATIZATION PROGRAM LAST YEAR NEARLY HALF OF CZECHOSLOVAKIA'S POPULATION OR 80 OF ALL ADULTS BOUGHT VOUCHERS IN WHAT WAS DUBBED THE WORLD'S BIGGEST CORPORATE SELLOFF THE BOOK VALUE OF THE COMPANIES SOLD TOTALED ABOUT 10 BILLION BUT WITH THE COUNTRY'S SPLIT INTO THE CZECH REPUBLIC AND SLOVAKIA ON JAN 1 INVESTORS HAVE HAD TO WAIT AND WAIT AGAIN TO TAKE OWNERSHIP OF THE SHARES BY THE END OF JUNE CONTROL OVER THE COMPANIES WILL HAVE SHIFTED FROM MANAGERS AND GOVERNMENT TO THE 85 MILLION LOCAL INVESTORS WHO PLUNKED DOWN ABOUT 35 EACH FOR A STAKE IN THEIR COUNTRY'S FUTURE SHAREHOLDERS' MEETINGS ARE SCHEDULED FOR COMING WEEKS AND MONTHS UNDER THE GOAD OF NEW OWNERS COMPANIES CAN THEN START SHEARING AWAY UNPROFITABLE DIVISIONS AND REACHING OUT TO FOREIGN INVESTORS AND THE FIRST REAL TRADING OF SHARES CAN BEGIN IT'S A DAY MANY FEARED MIGHT NEVER COME OUR LONG HEADACHE IS ABOUT TO END SAYS VACLAV SKOLOUT LEGAL DIRECTOR FOR THE PRAGUE STOCK EXCHANGE ALTHOUGH SET TO ROLL FOR MONTHS THE SMALL EXCHANGE AT THE BOTTOM OF WENCESLAS SQUARE HAS SO FAR SEEN ITS TRADING LIMITED TO A HANDFUL OF BONDS FULL SHARE TRADING THERE IS SCHEDULED TO BEGIN JUNE 24 FINALLY THE PHONE IS RINGING AND INVESTORS ARE SAYING WHEN CAN WE JUMP ON A PLANE AND COME LOOK AT COMPANIES' SAYS ALEXANDER ANGELL TRADING DIRECTOR AT WOOD & CO SECURITIES IN PRAGUE THE MOST RECENT HITCH IN DISTRIBUTING THE SHARES CAME MARCH 17 WHEN PRAGUE DECIDED TO HOLD THE SHARES HOSTAGE UNTIL IT IRONED OUT A FINANCIAL SPAT WITH SLOVAKIA OVER THEIR MUTUAL ASSETS CZECH PRIME MINISTER VACLAV KLAUS BROKE THE LOGJAM ON MAY 11 SAYING THE TWO SIDES HAD SETTLED MOST OF THEIR DIFFERENCES AND THAT SHARES COULD BE RELEASED THE MOVE PLEASED BANKERS AND SECURITIES BROKERS WHO FOR MONTHS HAD BEEN ALL DRESSED UP WITH NOWHERE TO GO AND NOTHING TO SELL IT ALSO SENT THOUSANDS OF AVERAGE CZECHS STREAMING TO REGISTRATION CENTERS LATE LAST MONTH TO RECEIVE FORMAL OWNERSHIP OF THEIR SHARES ON THE FIRST DAY 6000 SHARES WERE CONVERTED IN PRAGUE ALONE HOWEVER INVESTOR INTEREST AMONG SLOVAKS WAS CONSIDERABLY WEAKER AS INCOMES ARE GENERALLY LOWER AND THE VAST MAJORITY OF THE FIRMS PRIVATIZED ARE CZECH COMPANIES WHEN CZECHOSLOVAKIA WAS DIVIDED OWNERSHIP OF THE STATEOWNED COMPANIES WAS DETERMINED ON A TERRITORIAL BASIS AND MOST WERE LOCATED IN THE MORE HEAVILY INDUSTRIALIZED CZECH REPUBLIC NOW THAT ALL SIGNALS ARE GO THE INVESTMENT FUNDS SIT SMACK IN THE EYE OF THE COMING WHIRL THE VAST BULK OF INVESTORS HAVE PUT THEIR SHARES INTO THE CZECH REPUBLIC'S NEARLY 400 FUNDS 10 OF WHICH NOW CONTROL MORE THAN 40 OF ALL SHARES THE PROBLEM SAYS ANDREW REICHER DIRECTOR OF THE CREDIT SUISSE FIRST BOSTONOFFICE IN PRAGUE IS THAT THE FUNDS AT THE MOMENT ARE LITERALLY ALL SHARES THEY HAVE NO CASH SO THE ONLY WAY THEY CAN ADJUST THEIR PORTFOLIOS IS TO SELL WHAT THEY DON'T WANT IN ORDER TO BUY WHAT THEY DO AS A RESULT MR REICHER AND OTHERS PREDICT THAT IN THE FIRST FEW MONTHS OF TRADING PRICES WILL PLUMMET AS THE FUNDS SEEK TO TURN SHARES INTO CASH IT WILL BE A LONG TIME THOUGH BEFORE ANYONE REALLY KNOWS WHAT THEIR STOCKS ARE WORTH IN THE FIRST WEEKS OF LIMITED TRADING ON THE CZECH OVERTHECOUNTER MARKET SELL OFFERS OUTWEIGHED BUY OFFERS BY AS MUCH AS 10 TO 1 YET AT LEAST A FEW COMPANIES ESPECIALLY THOSE IN THE FOOD AND BEVERAGE INDUSTRIES ARE LIKELY TO SEE THEIR SHARE PRICES SOAR IN COMING MONTHS FOR NOW HOWEVER THE PREDICTION GAME REMAINS FAR FROM SCIENTIFIC YOU HAVE TO UNDERSTAND WE'RE STARTING AT GROUND ZERO SAYS MR ANGELL OF WOOD & CO THERE'S NO PRICE HISTORY THERE'S NO NOTHING 9306110175 930611 RPM TO REDEEM DEBENTURES MEDINA OHIO RPM INC SAID IT WILL REDEEM ALL 50 MILLION OF ITS 6 3/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2005 ON AUG 2 1993 AT 103 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST FOR CASH CONVERSION THE DEBENTURES ALSO ARE CONVERTIBLE TO COMMON SHARES AT 1360 A SHARE EQUIVALENT TO 36765 SHARES FOR EACH 5000 PRINCIPAL AMOUNT 9306110174 930611 UK'S WIMPEY PLANS RIGHTS ISSUE TO RAISE ABOUT 1576 MILLION SPECIAL TO THE WALL STREET JOURNAL LONDON GEORGE WIMPEY PLC A BRITISH CONSTRUCTION COMPANY SAID IT PLANS TO RAISE ABOUT 104 MILLION 1576 MILLION THROUGH A RIGHTS ISSUE THE COMPANY SAID IT WILL ISSUE AROUND 72 MILLION NEW SHARES AT 148 PENCE 224 A SHARE THIS REPRESENTS A 36 PENCE DISCOUNT TO ITS CLOSING PRICE YESTERDAY OF 184 PENCE THE RIGHTS ISSUE WILL BE ON A BASIS OF ONE NEW SHARE FOR EVERY FOUR SHARES HELD PROCEEDS WILL ENABLE IT TO UNDERTAKE A SIGNIFICANT INVESTMENT PROGRAM THE COMPANY SAID WIMPEY ALSO SAID THAT IT EXPECTS THE DIVIDEND FOR THE YEAR TO BE AT LEAST 1992'S LEVEL OF 525 PENCE A SHARE THE RIGHTS OFFERING COMES ON THE HEELS OF SEVERAL OTHER FUND RAISING VENTURES BY PROPERTY COMPANIES EAGER TO TAKE ADVANTAGE OF THEIR NEWFOUND POPULARITY SIGNS OF AN IMPROVEMENT IN ASSET VALUES HAVE RESULTED IN A RALLY IN PROPERTY AND PROPERTYRELATED STOCKS ON THE LONDON STOCK EXCHANGE FURTHER ATTENTION WAS DRAWN TO THE SECTOR LAST WEEK WHEN THE INTERNATIONAL INVESTOR GEORGE SOROS SET UP A 500 MILLION FUND WITH BRITISH LAND TO INVEST IN UK PROPERTY WIMPEY SAID IT BELIEVES THERE ARE NOW SIGNS THAT A GRADUAL RECOVERY IN THE UK HOUSING MARKET IS UNDER WAY IT SAID THE UPTURN IS REFLECTED IN THE PERFORMANCE OF ITS WIMPEY HOMES DIVISION WHICH HAS SEEN A SIGNIFICANT INCREASE IN SALES IN RECENT MONTHS SALES IN THE FIRST FIVE MONTHS OF THE YEAR ROSE 55 FROM A YEAR EARLIER 9306110173 930611 LEISURE & ARTS ON SPORTS PAR FOR THE COURSE BY FREDERICK C KLEIN SPRINGFIELD NJ THE 93RD US OPEN GOLF TOURNAMENT STARTS THURSDAY AT BALTUSROL GOLF CLUB'S LOWER COURSE HERE SO THIS SEEMS A GOOD TIME TO PONDER THE MEANING OF PAR PAR IS THE NUMBER OF STROKES IT SHOULD TAKE AN EXCELLENT GOLFER TO PLAY A HOLE ALLOWING FOR TWO PUTTS BUT SOMETIMES THE SPECIFICS CAN GET FUZZY WHAT FOR INSTANCE SHOULD BE PAR FOR A HOLE THAT MEASURES 474 YARDS AND REQUIRES THAT A DRIVE CARRY MORE THAN 200 YARDS JUST TO REACH THE FAIRWAY OR ONE THAT MEASURES 630 YARDS IS TREE LINED AND HAS TWO BATTERIES OF CROSSFAIRWAY BUNKERS IF YOU'RE AN ORDINARY GOLFER WHICH IS TO SAY ONE OF THE 99999 OF THE SPORT'S PARTICIPANTS WHO WON'T BE PLAYING IN THE TOURNEY DESPITE ITS OPEN DESIGNATION YOU PROBABLY ANSWERED AT LEAST FIVE TO THE FIRST QUESTION AND INCALCULABLE TO THE SECOND FOR THE OPEN FIELD HOWEVER THE ANSWERS WILL BE FOUR AND FIVE THE ABOVE QS AND AS ARE PERTINENT TO NEXT WEEK'S DOINGS BECAUSE OF PAST TOURNAMENTS AT BALTUSROL WHOSE SYLVAN ACRES LIE 17 MILES WEST OF MANHATTAN THIS WILL BE THE SEVENTH MEN'S OPEN ON THE COURSE AND 72HOLE INDIVIDUAL LOWSCORING RECORDS FOR THE EVENT WERE SET IN FOUR OF THE PREVIOUS SIX IN 1967 THE NEXTTOLAST TIME IT WAS HERE JACK NICKLAUS GOT AROUND IN A RECORD 275 STROKES HE LOWERED IT TO 272 13 YEARS LATER THAT MARK STILL STANDS SO BALTUSROL IS A PUSHOVER FOR THE PROS HUH WELL MAYBE NOT IF YOU LOOK YOU'LL SEE THAT ONLY ONE OTHER PLAYER BESIDES NICKLAUS BROKE OUR 72HOLE PAR OF 280 IN '67 AND THAT JUST FOUR OTHER PLAYERS BROKE IT IN '80 NOTES BALTUSROL MEMBER DICK MILLER THIS YEAR'S TOURNEY GENERAL CHAIRMAN BUT DICK THAT 474YARD PAR FOUR AND THE 630YARD PAR FIVE AND THOSE FOUR OTHER PAR FOURS OF 460 YARDS OR MORE AND IN THE END OF COURSE SOMEONE WILL WIN AND THE ONLY REQUIREMENT FOR HIS SCORE IS THAT IT BE ONE STROKE LOWER THAN THE NEXT GUY'S BUT THE PAR POINT HIGHLIGHTS THE FACT THAT SOME CONS AS WELL AS PROS WILL BE PROWLING THE FAIRWAYS AT THE OPEN VENUE FOR STARTERS BALTUSROL'S LOWER COURSE IS TOPOGRAPHICALLY BLAND AND BOB ROSS THE CLUB'S LONGTIME PRO AFFIRMS THAT MANY MEMBERS PREFER TO PLAY THE SHORTER BUT SPORTIER UPPER COURSE SO NAMED BECAUSE IT SITS A BIT HIGHER ON THE LARGE HILL OR IF YOU WILL SMALL MOUNTAIN THAT BORDERS THE PROPERTY THERE'S ALSO THE ASSERTION THAT INDIVIDUAL HOLES LACK DISTINCTION IT'S A SERIES OF VERY VERY NICE GOLF HOLES NONE OF WHICH ARE OUTSTANDING BUT NONE OF WHICH ARE BAD SAYS THE GREAT NICKLAUS ON THE OTHER SIDE IS THE ASSET OF HISTORY THAT A BALTUSROL OPEN CARRIES THE TOURNAMENT'S PREVIOUS EDITIONS HERE BOTH CHARTED THE IMPROVEMENT OF THE SPORT AND SERVED AS A SHOWCASE FOR ALMOST EVERY OUTCOME A MAJOR GOLFING COMPETITION CAN HAVE THE FIRST OPEN WINNER ON THE COURSE THAT LEGEND SAYS TAKES ITS NAME FROM AN EARLY19TH CENTURY FARMER NAMED BALTUS ROLL WHO ONCE OWNED THE LAND WAS WILLIE ANDERSON IN 1903 WITH A 72HOLE SCORE OF 307 PLUS AN 82 IN AN 18HOLE PLAYOFF IT WAS THE THIRD OF FOUR OPENS WON BY THE DOUR LITTLE SCOT A RECORD LATER MATCHED ONLY BY BOBBY JONES BEN HOGAN AND NICKLAUS THE WINNER IN 1915 AT 297 STROKES WAS JEROME TRAVERS A COMMODITIES BROKER HE'S ONE OF JUST FIVE AMATEURS WHO'VE CLAIMED THE CROWN THE 1936 WINNER WITH A SCORE OF 282 ON THE UPPER COURSE WAS TONY MANERO A DAPPER JOURNEYMAN PRO WHO'D SPEND HIS LATER YEARS RUNNING A RESTAURANT IN GREENWICH CONN THE CHAMP IN 1954 AT 284 STROKES WAS ED FUGOL WHOSE WITHERED LEFT ARM FROM A CHILDHOOD PLAYGROUND ACCIDENT FORCED HIM TO VIOLATE THE SPORT'S STRAIGHTLEFTARM DICTUM NICKLAUS'S VICTORIES IN 1967 AND '80 CEMENTED HIS CLAIM TO BE GOLF'S GREATEST IN THE 1967 EVENT DARLIN' JACK BEGAN THE LAST DAY TIED WITH ARNOLD PALMER AND HIS LASTROUND 65 TO PALMER'S 69 SETTLED THE RIVALRY BETWEEN THE TWO FOREVERMORE AFTER NICKLAUS'S FIRSTDAY 63 IN 1980 THE ONLY QUESTION WAS WHO'D FINISH SECOND THE COURSE THE CONTESTANTS WILL PLAY THIS TIME IS ESSENTIALLY THE SAME ONE NICKLAUS CONQUERED IN 1980 THE ORIGINAL LAYOUT FINISHED IN 1922 UNDER SUPERVISION OF THE NOTED ARCHITECT AND MANABOUTTOWN AW TILLINGHAST HAS BEEN MODIFIED SEVERAL TIMES SINCE TO KEEP UP WITH THE GAME'S TECHNOLOGY BUT ALL THAT WAS DONE FOR NEXT WEEK'S EVENT BESIDES LETTING THE ROUGH GROW TO THE FOURTOFIVE INCHES THAT ANNUALLY BEDEVILS THE GAME'S GODS WAS TO MOVE A FEW TEES AND BUNKERS THE ONLY WAY BALTUSROL DIFFERS MARKEDLY FROM OTHER RECENT OPEN COURSES IS THAT THREE OF ITS PARTHREE HOLES NOS 4 9 AND 16 HAVE TWO TEES WHICH FOR VARIETY'S SAKE WILL BE USED ON ALTERNATE DAYS SO COURSE YARDAGE MEASUREMENTS WILL VARY BETWEEN 7085 AND 7163 YARDS BY MOST ACCOUNTS BALTUSROL'S STRONGEST HOLES ARE ON ITS FRONT NINE THESE INCLUDE THE PICTURESQUE NO 4 WHICH WILL PLAY EITHER 162 OR 194 YARDS OVER WATER AND NO 6 A 470YARD PAR FOUR WHOSE HUMPBACKED FAIRWAY STEERS ALL BUT THE BESTPLACED DRIVES INTO ROUGH WHENCE REACHING THE GREEN IN TWO WILL BE DIFFICULT THE TOURNEY THOUGH IS LIKELY TO BE DECIDED ON HOLES 17 AND 18 THE ONLY ONES WHOSE PAR IS FIVE SEVENTEEN MEASURES 630 YARDS NOBODY'S YET REACHED ITS SMALLISH GREEN IN TWO IN TOURNEY PLAY EIGHTEEN SPANS 542 YARDS IT'LL BE REACHABLE IN TWO BY SOME SO PLAYING IT WILL INVOLVE A DECISION THAT SHOULD MAKE IT THE MORE INTERESTING JOURNEY THE SMART WAY TO PLAY 18 IS TO HIT UP SHORT AND TRY TO PITCH CLOSE BUT WITH THE CHAMPIONSHIP ON THE LINE THE LAST DAY SOME GUYS'LL BE TAKING CHANCES HOMEPRO ROSS SAYS WITH EVIDENT GLEE PREDICTING THE OUTCOME OF ANY SPORTING EVENT IS DIFFICULT MUCH LESS THIS ONE WEATHER ALWAYS PLAYS A MAJOR ROLE IN GOLF AND THE BEHAVIOR OF THE ALWAYSCHARMING NEW YORKAREA CROWDS MAY BE ANOTHER VARIABLE STILL ROSS VENTURES THAT ANYONE WHOSE STROKES AT THE CLOSE OF BUSINESS SUNDAY NUMBER 276 OR FEWER WILL GO HOME HAPPY NO MATTER WHAT THE SCORECARD SAYS IS PAR 9306110171 930611 SENATE PANEL ADOPTS PLAN FOR DIRECT STUDENT LOANS WASHINGTON THE SENATE LABOR COMMITTEE FORMALLY ADOPTED A COMPROMISE THAT WOULD REDUCE THE ROLE OF BANKS IN THE GUARANTEED STUDENT LOAN PROGRAM AND ESTABLISH SOME DIRECT LOANS FROM THE GOVERNMENT UNDER THE COMPROMISE FEES THAT STUDENTS PAY WHEN THEY GET BANK OR DIRECT GOVERNMENT LOANS WOULD BE REDUCED FOR EXAMPLE THE ORIGINATION FEE ON A 5000 LOAN WOULD FALL TO 150 FROM 400 ALSO BANKS THAT MAKE LOANS AND THE STUDENT LOAN MARKETING ASSOCIATION WHICH BUYS STUDENT LOANS FROM BANKS AND PACKAGES THEM INTO SECURITIES SOLD TO THE PUBLIC WOULD PAY THE GOVERNMENT NEW FEES THE CHANGES ARE EXPECTED TO SAVE THE GOVERNMENT 43 BILLION OVER FIVE YEARS THE PROGRAM WOULD BE PHASED IN AND WOULD ENABLE STUDENTS TO GET LOANS THROUGH THEIR SCHOOLS IN THE 199495 SCHOOL YEAR 5 OF THE LOANS WOULD COME FROM THE GOVERNMENT THAT WOULD RISE TO 50 IN THE 199798 SCHOOL YEAR A BIPARTISAN COMMISSION PLANS TO STUDY THE CHANGE AND DECIDE WHETHER THE PROGRAM SHOULD BE 100 DIRECTLENDING THE CLINTON ADMINISTRATION PROPOSED A COMPLETE DIRECTLENDING PROGRAM WHICH THE HOUSE ADOPTED DIFFERENCES BETWEEN THE SENATE LABOR COMPROMISE WHICH IS LIKELY TO BE EMBRACED BY THE FULL SENATE AND THE HOUSE VERSION HAVE TO BE WORKED OUT IN CONFERENCE 9306110170 930611 POLITICS & POLICY BANKING INDUSTRY TO GET OMBUDSMAN FOR RULING APPEALS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON EUGENE LUDWIG THE COMPTROLLER OF THE CURRENCY SAID HE WILL APPOINT AN OMBUDSMAN TO GIVE BANKS A NEW CHANNEL FOR CHALLENGING REGULATORY JUDGMENTS THEY CONSIDER TOO HARSH THE ANNOUNCEMENT IS IN RESPONSE TO COMPLAINTS BY BANKERS THAT REGULATORSBURNED BY MORE THAN 1000 BANK FAILURES SINCE 1985ARE TOO CAUTIOUS ABOUT ALLOWING BANKS TO TAKE RISKS AND THAT IN TURN HAS DISCOURAGED THEM FROM MAKING LOANS BANKERS ALSO SAID THEY ARE RELUCTANT TO APPEAL RULINGS OF EXAMINERS WHO SUPERVISE THEIR BANKS TO GET AROUND THIS MR LUDWIG SAID THE OMBUDSMAN WILL WORK DIRECTLY FOR HIM OUTSIDE OF THE NORMAL SUPERVISORY CHAIN OF COMMAND THE OMBUDSMAN WILL HAVE AUTHORITY TO SUPERSEDE ANY AGENCY DECISION OR ACTION ON AN APPEALABLE MATTER MR LUDWIG SAID DIANE CASEY A FORMER BANK EXAMINER WHO IS CURRENTLY EXECUTIVE DIRECTOR OF THE INDEPENDENT BANKERS ASSOCIATION WHICH REPRESENTS COMMUNITY BANKS PRAISED THE MOVE THIS IS GOING TO ALLOW BANKERS TO FEEL THAT THEY HAVE AN OPPORTUNITY TO BE HEARD BY AN INDEPENDENT PERSON THOUGH THE OMBUDSMAN WILL BE A TRAINED BANK EXAMINER SHE SAID SHE DIDN'T VIEW IT AS AN EXAMPLE OF APPOINTING A FOX TO GUARD THE HENHOUSE SHE ALSO SAID A NEW SET OF DEADLINES FOR DEALING WITH APPEALS WILL LEAD TO SPEEDIER RESOLUTION OF COMPLAINTS MR LUDWIG ALSO ANNOUNCED THAT THE COMPTROLLER'S OFFICE WHICH REGULATES NATIONAL BANKS IS IN THE PROCESS OF ESTABLISHING AN 800 NUMBER FOR TAKING CONSUMER COMPLAINTS INCLUDING COMPLAINTS ABOUT DISCRIMINATORY LENDING PRACTICES IN ADDITION THE COMPTROLLER JOINED THE FEDERAL DEPOSIT INSURANCE CORP THE FEDERAL RESERVE BOARD AND THE OFFICE OF THRIFT SUPERVISION IN ISSUING A SERIES OF REGULATORY RULINGS THAT PRESIDENT CLINTON PROMISED IN A MARCH 10 ANNOUNCEMENT OF MEASURES TO SPUR LENDING TO SMALL BUSINESSES THE JOINT STATEMENT PROVIDES GREATER CONSISTENCY AMONG EXISTING POLICIES FOR RETURNING TROUBLED LOANS TO ACCRUAL OR INCOMEEARNING STATUS THE AGENCIES ALSO ANNOUNCED A PROGRAM TO COORDINATE BANK EXAMINATIONS AS A WAY TO REDUCE REGULATORY OVERLAP BANKERS HAVE LONG SOUGHT SUCH ACTION 9306110169 930611 INTERNATIONAL BRITISH AEROSPACE CONTRACT LONDON BRITISH AEROSPACE PLC SIGNED A CONTRACT WITH THE INDONESIAN GOVERNMENT FOR THE SALE OF 24 HAWK AIRCRAFT THE COMPANY DIDN'T DISCLOSE THE VALUE OF THE DEAL AT THE REQUEST OF INDONESIA HOWEVER INDUSTRY ESTIMATES AND SOURCES FAMILIAR WITH THE TRANSACTION VALUED THE ORDER AT 500 MILLION 758 MILLION THE AIRCRAFT SALE TO THE INDONESIAN AIR FORCE ADDS TO AN EXISITING 20 HAWK TRAINERS IN INDONESIA PURCHASED IN THE EARLY 1980S 9306110168 930611 WORK & FAMILY BY SUE SHELLENBARGER FEDERAL FAMILYLEAVE REGULATIONS RELEASED LAST WEEK OFFER A SURPRISINGLY BROAD DEFINITION OF ILLNESS THE LABOR DEPARTMENT'S DEFINITION IS SO WIDE IT WOULD SEEM TO ENCOMPASS JUST ABOUT ANY HEALTH CONDITION OPENING UP POTENTIALLY A NUMBER OF LOOPHOLES FOR EMPLOYEES SAYS KAREN ROSS AN EMPLOYMENTLAW ATTORNEY WITH SCHULTE ROTH & ZABEL NEW YORK WILLIAM BROSSMAN AN ATTORNEY FOR WILLIAM M MERCER INC BENEFITS CONSULTANTS IN SAN FRANCISCO ADDS IT'S GOING TO BE DIFFICULT FOR AN EMPLOYER TO DENY LEAVE IN MANY CASES THE LAW EFFECTIVE AUG 5 GIVES WORKERS UP TO 12 WEEKS OF UNPAID JOBPROTECTED LEAVE WITH HEALTH BENEFITS EACH YEAR TO CARE FOR A NEW CHILD AILING RELATIVE OR ONE'S OWN ILLNESS UNDER THE RULES A QUALIFYING ILLNESS IS ANY PHYSICAL OR MENTAL AILMENT INVOLVING AN OVERNIGHT HOSPITAL STAY OR A THREEDAY ABSENCE FROM WORK COMBINED WITH CONTINUING TREATMENT OR SUPERVISION BY A DOCTOR OR OTHER HEALTHCARE PROFESSIONAL ALSO COVERED IS ANY CHRONIC CONDITION THAT REQUIRES CONTINUING MEDICAL TREATMENT AND WOULD INCAPACITATE THE PERSON FOR MORE THAN THREE DAYS IF LEFT UNTREATED ASSUMING THOSE CONDITIONS ARE MET TREATMENTS FOR ALLERGIES STRESS OR DRUG ABUSE OR EVEN CARING FOR CHILDREN WITH SUCH COMMON AILMENTS AS CHICKEN POX MIGHT BE COVERED A LABOR DEPARTMENT SPOKESMAN SAYS ACNE OR ORTHODONTIC TREATMENTS WOULD TYPICALLY NOT BE COVERED THOUGH MOST EMPLOYERS HAVEN'T HAD TIME TO STUDY THE RULES YET CONSULTANTS SAY IMPLEMENTING THEM WILL REQUIRE SOME MANAGER TRAINING ONE GOVERNMENT EMPLOYER IN CALIFORNIA WITH SEVERAL THOUSAND EMPLOYEES WAS SURPRISED AT HOW BROAD THE DEFINITION WAS AND CONCLUDED THEY WERE GOING TO NEED TO EDUCATE THEIR SUPERVISORS SAYS NICOLE BATCHELDER AN ATTORNEY FOR WILLIAM M MERCER IN SAN FRANCISCO IF AN EMPLOYEE ASKS FOR LEAVE YOU CERTAINLY DON'T WANT SUPERVISORS DENYING THE REQUEST ON THE ASSUMPTION THAT ONLY THE GRAVEST ILLNESSES ARE COVERED MS BATCHELDER SAYS FLEXIBLE SCHEDULING SEEPS DOWN TO THE RANK AND FILE MANY CUSTOMERSERVICE AND PRODUCTION JOBS UNDER UNION CONTRACTS HAVE LONG BEEN VIEWED AS UNSUITED TO FLEXIBLE SCHEDULING BUT MORE COMPANIES SEEING FLEXIBILITY AS A TOOL TO ACHIEVE GREATER EFFICIENCY OR QUALITY ARE GIVING UNION WORKERS LATITUDE IN SETTING THEIR HOURS AT GENERATING PLANTS OWNED BY DUQUESNE LIGHT A UNIT OF DQE IN PITTSBURGH MEMBERS OF THE INTERNATIONAL BROTHERHOOD OF ELECTRICAL WORKERS HAVE AGREED TO TRY MORE CROSSTRAINING AMONG JOB CATEGORIES IN RETURN FOR THE RIGHT OF WORK TEAMS TO SCHEDULE THEIR HOURS MANY TEAMS HAVE OPTED FOR A WORKWEEK OF FOUR 10HOUR SHIFTS A UNION OFFICIAL SAYS AT PACIFIC GAS & ELECTRIC LINEREPAIR AND GASSERVICE PERSONNEL CAN SWAP SHIFTS WITH SUPERVISORS' APPROVAL AND AT U S WEST 5000 CUSTOMERSERVICE REPRESENTATIVES WHO FIELD REPAIR REQUESTS HAVE EMPLOYEE COMMITTEES THAT SET SCHEDULES INCLUDING COMPRESSED WORKWEEKS BASED ON INFORMATION ABOUT CUSTOMER NEEDS IF YOU PUT SCHEDULING IN THE HANDS OF THE EMPLOYEES AND MAKE SURE THEY KNOW THE CUSTOMERS' NEEDS THEY'LL FIGURE IT OUT A U S WEST EXECUTIVE SAYS BUT MANY EMPLOYERS RESIST SUCH MOVES SAYING FLEXIBLE SCHEDULING CAN MAKE COVERING ABSENCES HARDER FOR EMPLOYEES THE NEED FOR WORK TEAMS TO AGREE ON HOURS CAN CAUSE INTERNAL STRIFE FOR INSTANCE WHEN A MAJORITY WANTS A 12HOUR SHIFT THAT WREAKS HAVOC WITH SINGLE PARENTS' CHILDCARE ARRANGEMENTS WHAT DOES A WORKING MOTHER LOOK LIKE NOT LIKE A BRIEFCASETOTING SUPERWOMAN WITH A BABY UNDER HER ARM IF IMAGES IN RECENT ADVERTISING ARE ANY GUIDE SUCH HAVEITALL STEREOTYPES IN ADVERTISING LIKE THE ONE REFLECTED IN A 1979 PERFUME AD'S MESSAGE I CAN BRING HOME THE BACON FRY IT UP IN THE PAN AND NEVER LET YOU FORGET YOU'RE A MAN HAVE GIVEN WAY TO MORE COMPLEX IMAGES OF BUSY WOMEN WHO MAY OR MAY NOT HAVE JOBS IMMERSED IN REALISTIC FAMILY ACTIVITIES AD EXECUTIVES SAY THE SUPERWOMAN IMAGE ANGERED MANY WOMEN BY EXCLUDING THOSE IN NONMANAGERIAL JOBS OR WITHOUT JOBS AT ALL SAYS KAREN RANDOLPH SENIOR VICE PRESIDENT CONSUMER RESOURCES FOR FOOTE CONE & BELDING IN CHICAGO FOR OTHERS IT WAS A REMINDER OF FEELING TORN BY MULTIPLE WORK AND FAMILY ROLES JAN KURTZ EXECUTIVE DIRECTOR OF THE AMERICAN ADVERTISING MUSEUM IN PORTLAND ORE SAYS WE'RE PAST THE POINT WHERE WORKING IS PART OF A WOMAN'S FANTASY LIFE WOMEN ALSO NO LONGER FEEL THE NEED TO IGNORE THE MORE TRADITIONAL ROLES THEY PLAY SAYS ROCHELLE LAZARUS PRESIDENT OF OGILVY & MATHER NEW YORK OGILVY CREATED A NYNEX AD IN WHICH A WOMAN CABLE SPLICER FOR NYNEX WHO IS A SINGLE MOTHER TALKS ABOUT HER PRIDE IN HER WORK AND ITS IMPACT ON HER TWO DAUGHTERS OTHERS SHOW WOMEN MANAGING MULTIPLE ROLES IN A RELAXED WAY IN A RECENT DANNON YOGURT AD A BLACKANDWHITE SCENE OF A WOMAN IN AN OFFICE SHIFTS TO A FULLCOLOR PARK SETTING WHERE SHE IS PLAYING WITH HER BABY EATING YOGURT LIZ PALEY ACCOUNT SUPERVISOR AT GREY ADVERTISING THE AD'S CREATOR SAYS SHE IS DEFINITELY A SERIOUS WORKING WOMAN BUT THERE IS LESS OF THAT '80S EXTREMISM WHERE SHE IS VERY MANAGERIAL ABOUT HER PERSONAL LIFE AS WELL AMERICANS ARE STILL AMBIVALENT ABOUT WHETHER DUALPAYCHECK FAMILIES ARE A GOOD THING A LOUIS HARRIS & ASSOCIATES POLL FOR MCI COMMUNICATIONS SHOWS THOUGH 80 OF THOSE SURVEYED SAID THEY ACCEPT THE PRACTICE OF WOMEN HOLDING PAYING JOBS WHILE RAISING CHILDREN 50 SAID THE TREND TOWARD BOTH PARENTS WORKING HAS HAD A NEGATIVE EFFECT ON FAMILIES AMERICAN EXPRESS SOUTHWESTERN BELL AND STEELCASE ARE AMONG COMPANIES RECEIVING AWARDS THIS YEAR FROM THE DEPARTMENT OF HEALTH AND HUMAN SERVICES' ADMINISTRATION ON AGING FOR PROGRAMS THAT HELP EMPLOYEES CARING FOR ELDERLY RELATIVES 9306110167 930611 PARIS BOURSE CLEARS 180ASHARE OFFER BY GEHE AG FOR OCP SPECIAL TO THE WALL STREET JOURNAL PARIS THE PARIS BOURSE APPROVED A COUNTERBID FOR FRENCH PHARMACEUTICALDISTRIBUTION COMPANY OFFICE COMMERCIAL PHARMACEUTIQUE SA BY GERMANY'S GEHE AG THE SOCIETE DES BOURSES FRANCAISES SAID THAT THE GERMAN PHARMACEUTICAL DISTRIBUTOR AND GENERIC DRUG MAKER COULD PROCEED WITH ITS 985 FRANC 180 A SHARE OFFER FOR OCP THAT COMPETES WITH AN EXISTING OFFER BY COOPERATION PHARMACEUTIQUE FRANCAISE SA AND BERGEN BRUNSWIG CORP AT 865 FRANCS A SHARE THE GEHE OFFER IS THE GROUP'S SECOND THE FIRST AT 800 FRANCS A SHARE SET OFF A BATTLE TO WIN OCP FRANCE'S LARGEST PHARMACEUTICAL DISTRIBUTOR WITH 42 OF THE MARKET IN FRANCE BUT THAT BID WAS THROWN OUT BY A FRENCH COURT BECAUSE CERTAIN TERMS WERE DEEMED IN VIOLATION OF FRENCH SECURITIES RULES ABOUT EQUAL OPPORTUNITY TO ACQUIRE A COMPANY AMONG ALL COMPETITORS IN A BIDDING WAR ON THE MARKET AT THAT POINT THE COOPER/BERGEN BRUNSWIG OFFER APPEARED ON THE SCENE THE PARIS BOURSE AUTHORITIES SAID THAT TRADING IN OCP SHARES WILL RESUME JUNE 14 ON THE OVERTHECOUNTER MARKET THE SHARES WERE SUSPENDED AT 850 FRANCS A SHARE GEHE HAS RESERVED THE RIGHT NOT TO PROCEED WITH THE OPERATION IF IT GETS LESS THAN 50 OF THE DILUTED CAPITAL OR 1382738 SHARES GEHE ANNOUNCED ITS COUNTEROFFER MONDAY 9306110165 930611 WHO'S NEWS KEITHLEY INSTRUMENTS INC KEITHLEY INSTRUMENTS INC SOLON OHIO GABRIEL A ROSICA 53 YEARS OLD WAS NAMED A DIRECTOR OF THIS MAKER OF HARDWARE AND SOFTWARE FOR TESTING AND MEASUREMENT EQUIPMENT HE FILLS A VACANCY CREATED BY THE RETIREMENT OF DON ALSTADT MORE THAN A YEAR AGO KEITHLEY'S BOARD STANDS AT 11 MEMBERS MR ROSICA IS SENIOR VICE PRESIDENT OF SYSTEMS OPERATIONS AT BAILEY CONTROLS CO CLEVELAND A UNIT OF ELSAG BAILEY INC MILAN 9306110164 930611 TRAVEL AGENTS KICK SAND IN PLAN TO BOOST TOURISM IN HAWAII INDUSTRY PROTESTS BUREAU'S IDEA TO FINANCE AD CAMPAIGN WITH UNUSED HOTEL ROOMS BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL FOR THE HAWAII VISITORS BUREAU THE IDEA APPEARED TO BE A SURE WINNER STATE TOURISM IS IN THE DUMPS AND HOTEL ROOMS ARE GOING EMPTY SO WHY NOT ASK THE HOTELS TO DONATE THEIR UNUSED ROOMS TO THE BUREAU WHICH WOULD SELL THEM TO A BARTER COMPANY AND USE THE PROCEEDS TO FINANCE A SPLASHY ADVERTISING CAMPAIGN PROMOTING HAWAII TOURISM EVERYBODY IS HAPPY WELL NOT QUITE EVERYBODY TRAVEL AGENTS AND TOUR OPERATORS ARE FURIOUS BECAUSE THE PLAN WOULD BYPASS THEM ANOTHER SORE POINT THE HAWAII VISITORS BUREAU RECEIVES MOST OF ITS FUNDING FROM STATE GOVERNMENT SO THE PLAN WOULD EFFECTIVELY PUT A PUBLICLY FUNDED ASSOCIATION INTO THE TRAVEL BUSINESS BOYCOTTS AND LAWSUITS HAVE BEEN THREATENED THE SQUABBLING COMES AMID THE STATE'S THIRD CONSECUTIVE YEAR IN WHICH THE NUMBER OF TOURISTS IS EXPECTED TO DECLINE AND EVERYONE AGREES THAT DRASTIC ACTION IS NEEDED WILL AN AD CAMPAIGN WORK OF COURSE IT WILL SAYS MILICI VALENTI GABRIEL & DDB NEEDHAM IN HONOLULU A UNIT OF DDB NEEDHAM WORLDWIDE WHICH HAS WORKED FOR THE HAWAII VISITORS BUREAU FOR MORE THAN 20 YEARS THE AD AGENCY WHICH DEVISED THE CONTROVERSIAL FUNDING PLAN BELIEVES A 10 MILLION PROMOTIONAL BLITZ WOULD PUMP MONEY INTO THE COFFERS OF MANY HAWAII BUSINESSES NOT TO MENTION ITS OWN MILICI VALENTI DECLINED TO COMMENT ON THE PLAN UNTIL IT HAS BEEN APPROVED BY THE VISITORS BUREAU THE BUREAU ALSO DECLINED TO COMMENT FOR THE SAME REASON ADVOCATES OF THE PLAN HOWEVER SAY TRAVEL AGENTS WOULDN'T BE HURT BECAUSE THE BARTER COMPANY WOULD BE RESTRICTED IN SELLING HOTEL ROOMS TO CORPORATIONS THAT ONLY USE INHOUSE TRAVEL PLANNERS ALTHOUGH ENFORCING SUCH RESTRICTIONS ON BARTER COMPANIES WOULD BE VERY DIFFICULT INITIALLY THE GOAL WAS TO PERSUADE BOTH AIRLINES AND HOTELS TO DONATE EXCESS INVENTORY BUT THE AIRLINES BALKED AS IT STANDS CARRIERS DEEPLY DISCOUNT TICKETS TO HAWAII AND USUALLY LOSE MONEY ON THOSE ROUTES WE ONLY HAVE ONE PRODUCT AN AIRLINE SEAT AND I CAN'T IMAGINE GIVING IT AWAY TO ANYONE SAYS ONE AIRLINE SALES REPRESENTATIVE IN HAWAII THE PLAN AS PRESENTED TO HIM WAS UNTHINKABLE HE SAYS HOTELS HOWEVER HAVE BEEN MORE RECEPTIVE TO THE PROPOSAL HOTELS ARE USUALLY RELUCTANT TO GIVE AWAY FREE ROOMS BECAUSE THAT TENDS TO LOWER THE PERCEIVED VALUE OF THE ENTIRE PROPERTY BUT THESE ARE DRASTIC TIMES SAYS KEITH VIEIRA SENIOR VICE PRESIDENT OF ITT SHERATON HOTELS IN HAWAII WITH 10 PROPERTIES AND 7000 ROOMS ITT SHERATON CORP IS AMONG THE LARGEST HOTEL OPERATORS IN THE STATE MR VIEIRA SAYS SHERATON TYPICALLY HAS 700 EMPTY ROOMS A NIGHT AND THE COMPANY WOULD GLADLY GIVE UP 35 OF THOSE TO RAISE MONEY FOR AN AD CAMPAIGN THAT WILL DRIVE ALL KINDS OF BUSINESS THROUGH THE DOOR HE SAYS AND IT WOULD DRIVE TOUR OPERATORS SUCH AS JERRY HEALY UP THE WALL THE VICE PRESIDENT OF SALES FOR PLEASANT HOLIDAYS INC NEAR LOS ANGELES SAYS HE'S ENTITLED TO THE SAME DEALS AS THE VISITORS BUREAU IN FACT HE SAYS HE'LL BE GLAD TO BEAT THE OFFER IF ANY HOTEL GIVES ROOMS AWAY FOR FREE WE'RE GOING TO OFFER 25 FOR THE SAME NUMBER OF ROOMS AND THEN WE'LL HAVE A REAL HOTEL SALE MR HEALY SAYS IN A LETTER SENT OUT TO ANGRY AGENTS THIS WEEK THE VISITORS BUREAU SAID IT WOULD LOOK FOR A SOLUTION THAT WILL ENSURE A HARMONIOUS TOURISM INDUSTRY IF A SOLUTION ISN'T FOUND SAYS PAUL RUDEN SENIOR VICE PRESIDENT FOR THE AMERICAN SOCIETY OF TRAVEL AGENTS WE'LL SUE THEM 9306110163 930611 INTERNATIONAL ALGERIANS SEE FRANCE AS A BETRAYER CLOSING IMMIGRATION DOOR ON OLD COLONY BY PETER WALDMAN STAFF REPORTER OF THE WALL STREET JOURNAL ALGIERS ALGERIA LIKE A LONG BULLWHIP SNAPPING ACROSS THE MEDITERRANEAN FRANCE'S PLAN TO HALT IMMIGRATION HAS BEGUN TO STING THIS NORTH AFRICAN NATION BY NOON THE POLICE BARRICADES SURROUNDING THE FRENCH CONSULATE IN ALGIERS HOLD BACK MORE THAN 200 PEOPLE MOSTLY YOUNG MEN AND PENSIONERS ALL EYES ARE FIXED ON THE VISA OFFICE'S REVOLVING GREEN DOOR SEARCHING FOR A GLIMMER OF HOPE SUDDENLY GILLETTE IBRAHIMI EMERGES FROM THE PRISONLIKE BUILDING AND SPOTS HER SISTER ROSA IN THE CROWD AS THEIR EYES MEET ROSA'S HEART SINKS FOR THE SECOND TIME IN A DAY ROSA HAS SUBMITTED A THICK APPLICATION PACKAGE OF PAY STUBS BANKACCOUNT STATEMENTS ROUNDTRIP AIR TICKETS AND IDENTITY PAPERS SHOWING THAT HER ELDERLY MOTHER IS A CITIZEN OF FRANCE FOR THE SECOND TIME IN A DAY THE CONSULATE HAS DENIED ROSA A VISA BECAUSE HER MOTHER'S INVITATION TO ROSA TO VISIT FRANCE WASN'T PROPERLY NOTARIZED IN FRANCE THE WHOLE PURPOSE OF MY JOURNEY IS TO ESCORT MY MOTHER HOME TO PARIS SHE FUMES HOW IS SHE SUPPOSED TO NOTARIZE THE LETTER IN FRANCE IF SHE'S IN ALGERIA THEY'RE TRYING TO KEEP ALGERIANS OUT A FRENCH BILL AIMED AT ACHIEVING ZERO IMMIGRATION AS FRENCH INTERIOR MINISTER CHARLES PASQUA PUTS IT IS STILL WORKING ITS WAY THROUGH FRANCE'S PARLIAMENT WITH CONSERVATIVE PARTIES HOLDING 80 OF THE SEATS AFTER PARLIAMENTARY ELECTIONS EARLIER THIS YEAR AND WITH FRENCH UNEMPLOYMENT TOPPING 10 AND CLIMBING TOUGH ANTIIMMIGRATION LEGISLATION SEEMS ASSURED ALREADY ALGERIANS ARE FEELING THE BRUNT THEY SAY FOR EVERYONE BUT THE RICH THEY SAY VISAS HAVE DRIED UP THE IMMIGRATION CONFLICT IS THE LATEST SPAT IN A LOVEHATE RELATIONSHIP BETWEEN FRANCE AND ALGERIA THAT DATES BACK MORE THAN A CENTURY BEFORE ALGERIA BROKE FROM FRANCE IN A REVOLUTION IN THE 1950S AND EARLY 1960S THE COLONY WAS A VIRTUAL PROVINCE OF FRANCE WITH A MILLION FRENCH IMMIGRANTS LIVING THERE THE WAR DROVE MOST FRENCH FAMILIES BACK TO FRANCE ALONG WITH MUCH OF THE FRENCHSPEAKING ALGERIAN ELITE THEY HAD FOSTERED NOW BETWEEN ONE MILLION AND TWO MILLION PEOPLE OF ALGERIAN DESCENT LIVE IN FRANCE AS MUCH AS 4 OF FRANCE'S POPULATION AS MANY AS HALF OF THEM RESIDE IN FRANCE AS ILLEGAL ALIENS THE NEW IMMIGRATION PROPOSALS ARE AIMED AT THEM THE PROPOSALS INCLUDE PLANS TO REDUCE FAMILY REUNIONS TO RESTRICT POLITICAL REFUGEES TO INCREASE EXPULSIONS AND TO EMPOWER THE POLICE TO MAKE RANDOM IDENTITY CHECKS TO SIEZE ILLEGAL RESIDENTS THE PROPOSALS ARE MOST MENACING TO THE MANY ALGERIANS WHO HAVE WORKED HARD IN FRANCE FOR YEARS TO ESCAPE DEPRIVATIONS AT HOME MOREOVER THE PROPOSALS WOULD MAKE IT MUCH MORE DIFFICULT FOR FOREIGNERS TO GAIN FRENCH CITIZENSHIP WITH RACIST UNDERTONES ALGERIANS SAY THE IMMIGRATION BILL SEEKS TO REQUIRE REAL ASSIMILATION OF FOREIGNERS INTO FRENCH SOCIETY EXCLUDING ANYONE DEEMED TO BE A THREAT TO THE PUBLIC ORDER AND CULTURE OF FRANCE EXACTLY WHAT THOSE TERMS MEAN ISN'T SPECIFIED OMAR BOUROUH AN INDUSTRIAL SOCIOLOGIST AT THE UNIVERSITY OF TIZI OUZOU WHICH IS EAST OF ALGIERS SAYS FRANCE USES IMMIGRATION FROM TIME TO TIME TO EXERT PRESSURE ON THE ALGERIAN GOVERNMENT WHEN ALGERIA NATIONALIZED FRENCHOWNED OIL COMPANIES OPERATING IN ALGERIA IN THE MID1970S THE FRENCH GOVERNMENT REDUCED ALGERIAN IMMIGRATION AND HARASSED ALGERIANS IN FRANCE MR BOUROUH SAYS FRANCE HAS ALSO PLAYED ITS IMMIGRATION CARD HE SAYS TO PROD ALGERIA INTO USING FRENCH CONTRACTORS IN MAJOR PUBLICWORKS PROJECTS NOW WITH ENGLISH BEING TAUGHT MUCH MORE WIDELY IN ALGERIA AND WITH AN INFLUX OF NONFRENCH COMPANIES DOING BUSINESS HERE THE FRENCH ARE GETTING EVEN THROUGH IMMIGRATION MR BOUROUH SAYS THEY'RE VERY JEALOUS OF ANYTHING NONFRENCH IN ALGERIA HE SAYS BACK AT THE FRENCH CONSULATE IN DOWNTOWN ALGIERS HAMED OUAREZKI DOESN'T CARE ABOUT SUBTLETIES SURROUNDING THE ISSUE HE JUST WANTS A VISA TO ANY WESTERN COUNTRY THAT WILL TAKE HIM THE 38YEAROLD SHEETMETAL WORKER LIVES WITH NINE FAMILY MEMBERS IN HIS PARENTS' THREEROOM FLAT DURING THE GULF WAR HE HEARD THE US WAS GRANTING 5000 PERMANENTRESIDENCY VISAS TO ALGERIANS BUT BY THE TIME HE MADE IT TO THE US EMBASSY TO INQUIRE OVER 5000 PEOPLE WERE ALREADY IN LINE THIS IS THE SECOND TIME IN TWO MONTHS HE HAS APPLIED FOR A VISA TO FRANCE LAST TIME EVEN WITH A BANK STATEMENT SHOWING HE HAD 5500 FRENCH FRANCS 9998 HE WAS DENIED ALTHOUGH HE DOESN'T EXPECT BETTER LUCK NOW HE WON'T GIVE UP I'VE BEEN WATCHING PEOPLE COMING OUT OF THAT DOOR WITH ALL THE RIGHT PAPERS WITH EVERYTHING AND THEY'RE STILL REFUSED HE SAYS I'M AFRAID IT'S HOPELESS 9306110162 930611 SKANDIA DEFEATS TAKEOVER EFFORT AFTER 2 YEARS LARGEST INSURER IN SWEDEN NOW MUST BOOST PROFITS TO PLEASE NEW INVESTORS BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AB SKANDIA MANAGEMENT IS RIDING HIGH AFTER REBUFFING A TWOYEAR HOSTILE TAKEOVER ATTEMPT THAT WOUND UP BANKRUPTING A PAIR OF BIG SCANDINAVIAN RIVALS BUT SWEDEN'S BIGGEST INSURER MUST BOOST ANEMIC RESULTS IN A HURRY TO PLEASE DOZENS OF INTERNATIONAL INSTITUTIONAL INVESTORS THAT SNAPPED UP 40 OF THE COMPANY TUESDAY THAT LONGAWAITED TRANSACTION VALUED AT 32 BILLION SWEDISH KRONOR 4413 MILLION FINALLY ENDED THE SIEGE OF SKANDIA NORWAY'S UNI STOREBRAND AS UNDER PUBLIC ADMINISTRATION BUT STRUGGLING TO COMPLETE A MASSIVE RECAPITALIZATION SOLD ITS 25 SKANDIA STAKE AND HAFNIA HOLDING AS OF DENMARK A BANKRUPT DANISH COMPANY NOW BEING LIQUIDATED UNLOADED A 15 SKANDIA HOLDING HUGE LOSSES ON THOSE SKANDIA STAKES HAD TRIGGERED THE FINANCIAL COLLAPSE OF BOTH WOULDBE PREDATORS LAST YEAR THE SKANDIA STOCK WAS PICKED UP BY NEARLY 100 INTERNATIONAL INSTITUTIONAL INVESTORS SCATTERED ACROSS THE US UNITED KINGDOM AND SCANDINAVIA TO BE SURE THEY WERE SWAYED BY VIRTUAL FIRESALE TERMS THE PRICE OF 105 KRONOR A SHARE REPRESENTED A HEFTY 11 DISCOUNT TO TUESDAY'S CLOSING PRICE FOR SKANDIA SHARES ON THE STOCKHOLM STOCK EXCHANGE YET MOST MARKET ANALYSTS CONSIDERED THAT OUTCOME MORE THAN PALATABLE FOR UNI STOREBRAND AND HAFNIA AFTER ALL FINANCIAL ADVISERS HAD PEDDLED THE GIANT STAKE FOR MONTHS AMONG POTENTIAL STRATEGIC PARTNERS WITHOUT SUCCESS IT HELPED THE DEAL THAT SKANDIA'S SHARE PRICE HAS REBOUNDED ALONG WITH THE SWEDISH MARKET IN RECENT MONTHS SKANDIA WAS UP 38 FOR THE YEAR TO DATE BY TUESDAY AND RECOVERY PROSPECTS COULD FUEL FURTHER GAINS MANY ANALYSTS SUGGESTED SKANDIA STOCK JUMPED FIVE KRONOR OR 42 TO 123 KRONOR IN HEAVY TRADING ON THE STOCKHOLM EXCHANGE WEDNESDAY SKANDIA CHIEF EXECUTIVE BJOERN WOLRATH NEEDS TO SQUEEZE COSTS TO SPEED RECOVERY FROM BIG LOSSES OF THE PAST TWO YEARS LAST YEAR THE COMPANY'S OPERATING LOSS WIDENED TO 255 BILLION KRONOR FROM 580 MILLION KRONOR THE PREVIOUS YEAR ANALYSTS CAUTION IT COULD BE SEVERAL YEARS BEFORE SKANDIA APPROACHES THE PEAK CYCLICAL EARNINGS IT ACHIEVED IN THE LATE 1980S MR WOLRATH PROBABLY HAS SOME BREATHING ROOM PARTLY BECAUSE SKANDIA'S AWESOME DEFENSES AGAINST TAKEOVERS REMAIN IN PLACE BUT ALSO REFLECTING THE BARGAIN PRICE AT WHICH THE COMPANY'S NEW INSTITUTIONAL SHAREHOLDERS PICKED UP THEIR STOCK NONETHELESS TIM DAWSON A LONDONBASED INSURANCE ANALYST FOR LEHMAN BROTHERS CONSIDERS SKANDIA STOCK FAIRLY VALUED AT THE CURRENT PRICE REPRESENTING ROUGHLY 80 OF NET ASSET VALUE EXCLUDING THE GOODWILL STEMMING FROM ACQUISITIONS STILL ON THE COMPANY'S BOOKS THE OPERATING PERFORMANCE OF THIS COMPANY HAS BEEN PRETTY UNDISTINGUISHED THE ANALYST SAID FOR THE STOCK TO BE SIGNIFICANTLY RERATED WE NEED TO SEE MAJOR IMPROVEMENT IN UNDERLYING PROFITABILITY WITH THE DISTRACTIONS OF THE OWNERSHIP UPHEVEAL BEHIND THEM THEY MIGHT WELL ACHIEVE THAT BUT IT PROBABLY WILL TAKE A COUPLE OF YEARS 9306110161 930611 WHO'S NEWS NOBLES CONSULTANT IS NAMED PRESIDENT AND CHIEF OF HAL HONOLULU BRUCE NOBLES FORMERLY HEAD OF TRUMP SHUTTLE INC WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TROUBLED HAL INC AND ITS AIRLINE UNIT HAWAIIAN AIRLINE MR NOBLES 46 YEARS OLD MOST RECENTLY WAS AN AIRLINEINDUSTRY CONSULTANT HE SUCCEEDS JOHN A UEBERROTH WHO REMAINS CHAIRMAN OF BOTH COMPANIES MR UEBERROTH AND HIS BROTHER PETER THE FORMER MAJOR LEAGUE BASEBALL COMMISSIONER HEADED AN INVESTOR GROUP THAT TOOK OVER HAL IN 1990 THEY'VE HAD A BUMPY RIDE AS HAL PLAGUED BY BLOATED COST STRUCTURE AND PERIODIC FARE WARS RACKED UP LARGE OPERATING LOSSES HAL COMPLETED A MAJOR RESTRUCTURING LAST YEAR IN THE YEAR ENDED DEC 31 IT HAD AN OPERATING LOSS OF 82 MILLION OR 16 A SHARE ON REVENUE OF 3951 MILLION GAINS OF 1109 MILLION FROM DEBT EXTINGUISHMENT AND AN ACCOUNTING CHANGE LIFTED NET INCOME TO 29 MILLION OR 565 A SHARE SOME HAL CREDITORS CHEERED THE MOVE WE ARE EXTREMELY PLEASED WITH THE APPOINTMENT OF BRUCE NOBLES AS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF HAWAIIAN AIRLINES EINAR OLAFSSON MANAGING DIRECTOR OF GPA LEASINGNORTH AMERICA SAID IN A WRITTEN STATEMENT HE COULDN'T BE REACHED TO ELABORATE IN ADDITION TO RUNNING THE TRUMP SHUTTLE MR NOBLES ALSO HAS BEEN PRESIDENT OF THE PAN AM SHUTTLE INC AND L'EXPRESS INC A REGIONAL AIRLINE THAT OPERATED OUT OF NEW ORLEANS IN LATE TRADING YESTERDAY ON THE AMERICAN STOCK EXCHANGE HAL WAS QUOTED AT 43125 UP 625 CENTS 9306110160 930611 WHO'S NEWS BOSTON EDISON CO BOSTON EDISON CO BOSTON MASS THOMAS J MAY WILL BECOME PRESIDENT AND CHIEF OPERATING OFFICER OF THE UTILITY EFFECTIVE JULY 1 THE 46YEAROLD MR MAY CURRENTLY EXECUTIVE VICE PRESIDENT WILL TAKE OVER THE PRESIDENT'S ROLE FROM BERNARD W REZNICEK 56 WHO WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER THE CHIEF OPERATING OFFICER'S POSITION HAS BEEN VACANT FOR SEVERAL YEARS 9306110159 930611 LETTERS TO THE EDITOR IN DEFENSE OF SHELDON HACKNEY I READ YOUR SHOCKING EDITORIAL ON JUNE 9 THE OTHER GUINIERS WHICH INCLUDED A PICTURE OF SHELDON HACKNEY FORMER PRESIDENT OF THE UNIVERSITY OF PENNSYLVANIA THE FIRST HALF OF THE EDITORIAL IS DEDICATED TO CRITICISM OF HIS NOMINATION BY PRESIDENT CLINTON TO BE THE HEAD OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES THIS IS THE SECOND INFAMOUS EDITORIAL AGAINST SHELDON HACKNEY YOU HAVE WRITTEN I HAVE BEEN A FRIEND OF MR HACKNEY EVER SINCE HE WAS ELECTED PRESIDENT OF THE UNIVERSITY 12 YEARS AGO I SHOULD ALSO POINT OUT THAT I HAVE BEEN A TRUSTEE OF THE UNIVERSITY SINCE 1967 IT IS MY OPINION AND THE OPINION I'M SURE OF ALL THE TRUSTEES THAT SHELDON HACKNEY HAS BEEN ONE OF THE MANY GREAT PRESIDENTS WE HAVE HAD IF NOT THE GREATEST THE UNIVERSITY OF PENNSYLVANIA INCLUDING MANY OF ITS SCHOOLS SUCH AS THE WHARTON SCHOOL OF BUSINESS THE MEDICAL SCHOOL THE SCHOOL OF ENGINEERING THE LAW SCHOOL THE SCHOOL OF VETERINARY MEDICINE AND THE SCHOOL OF NURSING ARE ALL AT OR NEARLY AT THE TOP OF COMPARABLE LEARNING INSTITUTIONS DUE TO MR HACKNEY'S DRIVE TOWARD EXCELLENCE THIS HAS BEEN RECOGNIZED BY INSTITUTIONS AND INDIVIDUALS ALL OVER THE WORLD WHO HAVE ANSWERED THE UNIVERSITY'S CALL FOR FUNDS BY MASSIVE GIFTS ONLY RECENTLY IT HAS COMPLETED A 1 BILLION FUNDRAISING CAMPAIGN MR HACKNEY HAS BEEN A GREAT LEADER AND IN MY OPINION HAS NEVER BEEN ONE WHO COULD BE CONSIDERED AN ULTRALIBERAL OR ULTRACONSERVATIVE TO CRITICIZE HIM BECAUSE OF A FEW MINOR CAMPUS INCIDENTS INVOLVING STUDENTS IS A VERY LOWBALL ACT ON YOUR PART TO THINK THAT SUCH A DISTINGUISHED MAN AS SHELDON HACKNEY SHOULD NOT OCCUPY THE APPOINTMENT OF THE NATIONAL ENDOWMENT FOR THE HUMANITIES BECAUSE OF THESE MINOR INCIDENTS IS HARD TO BELIEVE HIS APPOINTMENT IS PROBABLY ONE OF THE BEST THAT PRESIDENT CLINTON HAS MADE FINALLY I HAVE READ THE WALL STREET JOURNAL EVER SINCE 1931 WHEN I CAME TO WORK ON WALL STREET I HAVE NEVER SEEN IT LOWER ITSELF ON ITS EDITORIAL PAGES WITH SUCH A PERSONAL ATTACK AS THE ONE MADE AGAINST MY FRIEND SHELDON HACKNEY NAME 9306110158 930611 BANK LENDING IN JAPAN IMPROVED 12 IN MAY TOPPING APRIL'S MARK SPECIAL TO THE WALL STREET JOURNAL TOKYO LENDING BY JAPANESE BANKS IN MAY GREW 12 FROM A YEAR EARLIER THE BANK OF JAPAN SAID THE PACE IMPROVED ON APRIL'S 11 INCREASE WHICH MARKED THE FIRST RISE SINCE OCTOBER 1991 WHEN LENDING GREW 5 LOANS OUTSTANDING BY JAPANESE BANKS AS OF MAY WERE AN AVERAGE 51763 TRILLION YEN 486 TRILLION THE CENTRAL BANK ALSO ANNOUNCED THAT COMMERCIAL PAPER ISSUED IN JAPAN DURING MAY SHRANK 420 BILLION YEN 395 BILLION FROM APRIL'S ISSUES TO TOTAL 1018 TRILLION YEN IN MAY FUNDS IN BANK DEPOSITS AND CERTIFICATES OF DEPOSIT ROSE 09 FROM A YEAR EARLIER TO AN AVERAGE OF 40246 TRILLION YEN INCREASING FOR THE FIRST TIME IN 11 MONTHS IN APRIL BANK DEPOSITS SHRANK 01 AN INCREASE IN INDIVIDUAL DEPOSITS WAS A FACTOR IN THE RISE AS THE FLOW OF FUNDS FROM DEPOSITS INTO MONEYMARKET FUNDS SLOWED A BANK OF JAPAN OFFICIAL SAID 9306110157 930611 GM EXTENDS CLOSURE OF ITS CADILLAC PLANT IN HAMTRAMCK MICH DETROIT GENERAL MOTORS CORP SAID IT HAS EXTENDED FOR ANOTHER WEEK THE SHUTDOWN AT ITS HAMTRAMCK MICH CADILLAC ASSEMBLY PLANT BECAUSE OF SLOW SALES OF THE CADILLAC SEVILLE AND ELDORADO MODELS BUILT THERE SEPARATELY GM SAID IT PLANS OVERTIME AT 12 ASSEMBLY PLANTS IN THE US AND CANADA FORD MOTOR CO SAID ALL BUT TWO OF ITS US ASSEMBLY PLANTS WILL LOG OVERTIME THIS WEEK CHRYSLER CORP SAID IT HAS SCHEDULED OVERTIME AT FOUR US AND TWO CANADIAN ASSEMBLY PLANTS THIS WEEK AND NEXT WEEK ALTOGETHER THE 10 DOMESTIC AUTO MAKERS PLAN TO BUILD 221812 VEHICLES THIS WEEK UP 18 FROM 217941 A YEAR EARLIER 9306110156 930611 WHO'S NEWS SALANT CORP SALANT CORP NEW YORK TODD KAHN 29 YEARS OLD WAS NAMED VICE PRESIDENT AND GENERAL COUNSEL AT THIS APPAREL CONCERN MR KAHN WHO HAD BEEN AN ATTORNEY AT NEW YORK LAW FIRM FRIED FRANK HARRIS SHRIVER & JACOBSON SUCCEEDS JOHN S RODGERS 62 MR RODGERS WILL CONTINUE AS CHAIRMAN AND SECRETARY 9306110154 930611 WHO'S NEWS STEWART & STEVENSON SERVICES INC STEWART & STEVENSON SERVICES INC HOUSTON DONALD J ATWOOD WAS NAMED TO THE BOARD OF THIS MAKER OF DIESEL AND GASTURBINEPOWERED EQUIPMENT SUCCEEDING JAMES KNOTT WHO RETIRED AT AGE 76 MR ATWOOD 68 WAS MOST RECENTLY DEPUTY SECRETARY OF DEFENSE FROM APRIL 1989 UNTIL LAST JANUARY 9306110153 930611 THURSDAY'S MARKETS STOCKS DROP BONDS ARE UP DOLLAR DOWN BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL STOCKS FELL AS INVESTORS DUMPED SHARES OF ECONOMICALLY SENSITIVE COMPANIES BONDS CREPT HIGHER AND THE DOLLAR SLID TO ANOTHER POSTWORLD WAR II LOW AGAINST THE YEN DESPITE INTERVENTION BY JAPAN'S CENTRAL BANK THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 2021 POINTS TO 349172 AN 86 DROP IN MINNESOTA MINING & MANUFACTURING ACCOUNTED FOR THE LOSS STANDARD & POOR'S 500STOCK INDEX SLIPPED 040 POINT TO 44538 AND THE NASDAQ COMPOSITE INDEX FELL 119 POINTS TO 68805 THE DECLINE IN TRIPLEM MAKES THE DOW LOOK MUCH WORSE THAN IT IS SAID TIM LOVE SENIOR PORTFOLIO MANAGER AT MARINVEST SHARES OF 3M WHOSE SYMBOL IS MMM PLUNGED 10 POINTS TO 105 3/4 AFTER THE COMPANY TOLD INVESTORS SECONDQUARTER EARNINGS WILL FALL SHORT OF EXPECTATIONS THE REASON SLOWING US ECONOMIC GROWTH THE REPORT SPURRED INVESTORS TO SELL SHARES OF MANY OTHER COMPANIES WHOSE FORTUNES ARE TIED TO THE ECONOMIC CYCLE A MORGAN STANLEY INDEX OF CYCLICAL STOCKS SLUMPED 153 POINTS YESTERDAY TO 26872 BY CONTRAST THE FIRM'S INDEX OF CONSUMER STOCKS EDGED UP 054 TO 19096 I THINK PEOPLE ARE LOOKING AT THE WEAKNESS IN THE FIRSTQUARTER GROSS DOMESTIC PRODUCT AND WONDERING HOW MUCH IS SPILLING OVER INTO THE SECOND QUARTER SAID THOMAS MCMANUS A MORGAN STANLEY ANALYST DESPITE THE DROP IN BROAD MARKET AVERAGES ANALYSTS SAID HEALTHCARE STOCKS WERE THE ONE BRIGHT SPOT IN THE MARKET JOHNSON & JOHNSON JUMPED 1 1/8 TO 44 1/2 PFIZER ROSE 1 3/8 TO 70 3/4 MERCK ADDED 7/8 TO 37 5/8 AND SCHERINGPLOUGH BOUNCED UP 2 1/4 TO 66 1/4 REPORTS OF A FAR MORE MODEST CLINTON HEALTHCARE PACKAGE HELPED BUOY THE STOCKS WORLDWIDE STOCK PRICES ADVANCED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 012 TO 10761 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2306 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1044 ISSUES DECLINED AND 796 ADVANCED THE DOLLAR FELL IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 16303 MARKS AND 10610 YEN COMPARED WITH 16350 MARKS AND 10645 YEN WEDNESDAY 9306110152 930611 BOEING CO GETS 700 MILLION OF ORDERS FOR NINE AIRCRAFT FROM THREE CARRIERS BY WALL STREET JOURNAL REPORTERS BRIAN COLEMAN IN PARIS AND DAVID J JEFFERSON IN LOS ANGELES BOEING CO SAID IT RECEIVED 700 MILLION OF ORDERS FROM THREE AIRLINES FOR NINE OF ITS 767 TWINJETS IT ALSO DISCUSSED THE SUPERJUMBOJET PROJECT BOEING ANNOUNCED AT THE PARIS AIR SHOW THAT BAHRAINBASED GULF AIR ORDERED TWO EXTENDEDRANGE 767300S EVA AIRWAYS OF TAIWAN ORDERED FOUR 767200S AND JAPAN AIRLINES THREE 767300S THE TRANSACTIONS BRING TO 665 THE TOTAL ORDERS FOR THE 767 AIRCRAFT WHICH IS BUILT BY THE BOEING COMMERCIAL AIRPLANE GROUP OF SEATTLEBASED BOEING THE JETLINERS WILL ALL BE POWERED BY GENERAL ELECTRIC CO CF6 ENGINES SEPARATELY BOEING AND DEUTSCHE AEROSPACE AG OF GERMANY SAID THEY EXPECT THE SUPERJUMBO 600SEAT JETLINER THEY ARE STUDYING TO SELL FOR AT LEAST 100 MILLION TO 125 MILLION THAT WOULD BE BELOW THE LIST PRICE OF BOEING'S SMALLER 747 AIRCRAFT JOHN HAYHURST BOEING VICE PRESIDENT AND JOINT DIRECTOR OF THE STUDY SAID THE COMPANIES ESTIMATE THE MARKET DEMAND TO BE AT LEAST 50 BILLION FOR 400 TO 500 AIRCRAFT WE HAVE TO CONDUCT A LOT MORE ANALYSIS MR HAYHURST SAID BUT IT WOULD APPEAR THERE IS A VIABLE MARKET ANALYSTS HOWEVER SAID THE EVENTUAL PRICE AIRLINES PAY FOR THE SUPERJUMBO IS LIKELY TO BE MUCH HIGHER THAN 125 MILLION BECAUSE OF DEVELOPMENT COSTS EXPECTED TO EXCEED 10 BILLION WE WOULD EXPECT THE PRICE OF THE PLANE TO BE 150 MILLION AT LEAST SAID PETE DEIGHTON OF SMITH NEW COURT SECURITIES LTD A 747 COMES IN AT 140 MILLION DESPITE THE DEBATE OVER PRICING MR HAYHURST AND JUERGEN THOMAS DEUTSCHE AEROSPACE EXECUTIVE VICE PRESIDENT PAINTED A PICTURE OF A PROJECT MOVING AHEAD SMOOTHLY AT A JOINT NEWS CONFERENCE AT THE PARIS AIR SHOW THEY SAID THE TWO SIDES HAD YET TO ENCOUNTER ANY OF THE MAJOR TECHNICAL OBSTACLES EXPECTED BY INDUSTRY OFFICIALS AND EVEN HAD AGREED TO PROVISIONAL SPECIFICATIONS FOR THE AIRCRAFT IN ADDITION TO DEUTSCHE AEROSPACE THE THREE OTHER AIRBUS INDUSTRIE PARTNERS HAVE JOINED BOEING IN THE STUDY THEY ARE AEROSPATIALE SA OF FRANCE BRITISH AEROSPACE PLC AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN FOR PURPOSES OF THE STUDY MR THOMAS SAID THEY HAVE DECIDED TO LOOK AT A DOUBLEDECKER AIRCRAFT WITH A RANGE OF 7000 NAUTICAL MILES THE PLANE WOULD WEIGH 540 TONS TO 570 TONS AND HAVE A WINGSPAN OF 262 FEET EVENTUALLY THEY SAID THE INTENTION WOULD BE TO STRETCH THE PLANE SO THAT IT COULD ACCOMMODATE AS MANY AS 750 PASSENGERS AND FLY EVEN LONGER DISTANCES MR HAYHURST ACKNOWLEDGED THAT FEW AIRPORTS IN THE WORLD COULD HANDLE WHAT THE COMPANIES ARE CALLING THE VERY LARGE COMMERCIAL TRANSPORT BUT HE NOTED THAT THE INCREASE FROM THE 400SEAT 747 TO A 600SEAT PLANE WOULD BE A SMALLER INCREMENTAL CHANGE THAN THE TRANSITION MADE FROM 200SEAT 727S TO THE 747 BUT BOTH MEN WARNED THAT THE ONEYEAR STUDY AGREED TO IN JANUARY REMAINS EXTREMELY PRELIMINARY IN NATURE SUCH ISSUES AS THE FINANCING OF THE AIRCRAFT THE FINAL ASSEMBLY SITE AND THE DIVISION OF WORK HAVE YET TO BE ADDRESSED AND BOTH MEN ACKNOWLEDGED THE TWO COMPANIES ARE MOVING FORWARD WITH SEPARATE STUDIES OF THEIR OWN WE HAVEN'T RULED OUT ANYTHING MR THOMAS SAID 9306110151 930611 ENTERPRISE PRICOR TO SWITCH TO THE SCHOOLHOUSE FROM THE JAILHOUSE COMPANY CONCEDES HARDENED CRIMINALS WERE MORE THAN IT COULD HANDLE BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL EIGHT YEARS AGO PRICOR INC THOUGHT IT SAW A PERFECT OPENING IN THE PRIVATIZATION MOVEMENT IT WOULD RUN CORRECTIONAL FACILITIES FOR PROFIT BUT PRISON LIFE HASN'T BEEN KIND TO THE MURFREESBORO TENN COMPANY AS IT TRIED TO JUGGLE FACILITIES SERVING JUVENILES AND THOSE GEARED TOWARD ADULTS PRICOR BLED MONEY HOPING TO STAY AFLOAT PRICOR NOW IS SWITCHIG FROM THE JAILHOUSE TO THE SCHOOLHOUSE CONCEDING THAT IT TOOK ON MORE THAN IT COULD HANDLE WITH HARDENED CRIMINALS IT PLANS TO EXPAND INTO WHAT IT SAYS ARE MORE PROFITABLE LINES SPECIAL EDUCATION FOR RETARDED OR EMOTIONALLY DISTURBED CHILDREN AND TREATMENT PROGRAMS FOR JUVENILE SEXUAL OFFENDERS WE NEVER EXPERIENCED A TREMENDOUS AMOUNT OF SUCCESS IN ADULT INCARCERATION SAYS STEVE NORRIS A PRICOR VICE PRESIDENT IT'S A FAIRLY DIVERSE MARKET AND THE COMPANY TRIED TO SPREAD ITSELF TOO THIN MANY COMPANIES THAT FLOCKED TO THE GROWING PRIVATE CORRECTIONS INDUSTRY ENCOUNTERED PROBLEMS BUT FEW HAVE SUFFERED MORE THAN PRICOR ONCE ONE OF THE BIGGEST COMPANIES IN THE FIELD LIKE SOME OTHER PIONEERS IN THE FIELD IT FOUND THAT FIRST TO GET STARTED ISN'T ALWAYS FIRST TO THE BANK PRICOR STUMBLED BY TRYING TO DO TOO MUCH IT SOUGHT TO OPERATE FACILITIES HOUSING A BROAD SWATH OF THE JAIL AND PRISON POPULATION RATHER THAN MEET THE NEEDS OF JUST ONE GROUP THE COMPLEXITIES OF THE TASK AND LEGAL SNAFUS UNDERMINED ITS OPERATIONS LIKE MANY COMPANIES THAT HAVE SLIPPED IT NOW WONDERS IF SHIFTING TO A RELATED FIELD CAN SAVE THE DAY UNTIL NOW THE COMPANY HAS FAILED MISERABLY ON THE BOTTOM LINE IN THE NINE MONTHS ENDED DEC 31 THE MOST RECENT PERIOD FOR WHICH FINANCIAL DATA ARE AVAILABLE PRICOR HAD A NET LOSS OF 3 MILLION ON REVENUE OF 198 MILLION THE COMPANY SAYS IT WILL REPORT A NET LOSS FOR THE YEAR ENDED MARCH 31 BUT DOESN'T SPECIFY THE AMOUNT INCORPORATED IN 1985 THE COMPANY HAS LOST MONEY IN SEVEN OF ITS EIGHT FISCAL YEARS PRICOR'S BANKS HAVE EXTENDED PAYMENT DEADLINES ON LOANS TO THE COMPANY THE CONCERN IS TRYING TO SELL ASSETS TO CUT DOWN A PILE OF DEBT TOTALING 117 MILLION PRICOR'S STOCK WHICH ONCE TRADED AS HIGH AS 13 OVER THE COUNTER CLOSED YESTERDAY AT 4375 CENTS UNCHANGED THE COMPANY HAS BEEN LATE IN PAYING ITS VENDORS AND ITS AUDITORS HAVE VOICED SERIOUS DOUBTS ABOUT THE CONCERN'S ABILITY TO STAY IN BUSINESS THINGS WEREN'T ALWAYS THIS BLEAK AFTER PRIVATIZATION OF THE PRISON SYSTEM FIRST CAPTURED THE MARKET'S IMAGINATION ALMOST A DECADE AGO PRICOR QUICKLY BECAME ONE OF THE INDUSTRY'S KEY PLAYERS ALONGSIDE CORRECTIONS CORPORATION OF AMERICA AND WACKENHUT CORRECTIONS CORP IN 1989 PRICOR WON A POTENTIALLY LUCRATIVE CONTRACT TO MANAGE SIX PROPOSED PRISONS IN TEXAS BUT ONLY ONE OF THE FACILITIES EVER OPENED THINGS WENT DOWNHILL FROM THERE LAST YEAR INVESTORS IN A BOND OFFERING FLOATED TO FINANCE CONSTRUCTION OF THE PRISONS SUED PRICOR THE PROJECT DEVELOPER CALLED NGROUP SECURITIES INC AND OTHERS IN US DISTRICT COURT IN HOUSTON ALLEGING SECURITIES FRAUD AND SEEKING 70 MILLION IN DAMAGES AMONG OTHER CHARGES THE SUIT ALLEGED THAT BOND DOCUMENTS DIDN'T DISCLOSE THAT SOME OFFICIALS OF NGROUP WERE ALSO PRICOR SHAREHOLDERS BUT SAYS WILLIAM BALLARD PRICOR'S CHIEF EXECUTIVE NOTHING WE HAD INDICATED THAT NGROUP PEOPLE OWNED ANY OF OUR STOCK ALLEGING THAT THE FRAUD CHARGES WERE GROUNDLESS AND DENYING LIABILITY PRICOR AGREED LAST YEAR TO SETTLE ITS SHARE OF THE SUIT FOR 1 MILLION IT HAS PAID 300000 OF THE OBLIGATION BUT WAS UNABLE TO PAY A 200000 INSTALLMENT DUE IN DECEMBER THE SIX CORRECTIONAL FACILITIES THAT PRICOR DID MANAGE TO OPERATE NEVER BECAME VERY PROFITABLE BY LAST YEAR THE COMPANY WAS MANAGING ONLY THREE FACILITIES THEN TEXAS AND ALABAMA DECLINED TO RENEW CONTRACTS WITH PRICOR FOR TWO OF THEM THE THIRD FACILITY IN VIRGINIA WAS SOLD LAST YEAR IN CONNECTION WITH A PROPOSED MERGER BETWEEN PRICOR AND CUMBERLAND HEALTH SYSTEMS INC A NASHVILLE TENN OPERATOR OF MEDICAL FACILITIES PRICOR EXPECTED THE MERGER TO PUMP NEW LIFE AND NEW CAPITAL INTO ITS OPERATIONS BUT THE DEAL COLLAPSED IN FEBRUARY AS A RESULT THE COMPANY GOT OUT OF THE ADULTCORRECTIONS BUSINESS LAST YEAR TO FOCUS ON THE NETWORK OF 14 EDUCATIONAL CENTERS AND FIVE TREATMENT CENTERS THAT IT HAD BEEN BUILDING SINCE 1988 IN CALIFORNIA TENNESSEE AND LOUISIANA THE COMPANY ALSO STILL OPERATES THREE JUVENILEDETENTION FACILITIES IT THINKS IT WILL SUCCEED THIS TIME AROUND AT THE SAME TIME WE WERE INVOLVED IN JUVENILE CORRECTIONS WE BECAME INVOLVED IN JUVENILE EDUCATION SAYS PRICOR'S MR BALLARD THOSE HAVE ALWAYS BEEN PROFITABLE LINES AND WE'RE NOW FOCUSING ON SOMETHING WE'VE DONE WELL BUT SKEPTICS DOUBT PRICOR'S ABILITY TO REMAKE ITSELF AS AN EDUCATIONAL CONCERN IT WOULD BE LIKE PHOENIX RISING FROM THE ASHES IF THAT HAPPENS SAYS PROF CHARLES THOMAS A CRIMINOLOGIST AT THE UNIVERSITY OF FLORIDA AT GAINESVILLE AND AN EXPERT ON THE CORRECTIONS BUSINESS PRICOR SAYS IT HAS NO NEW EDUCATIONAL CONTRACTS IN HAND BUT COMPANY EXECUTIVES SAY THEY BELIEVE PRICOR HAS SURVIVED ITS MOST DIFFICULT TIMES AND THEY SPEAK ENTHUSIASTICALLY OF THE PUSH INTO EDUCATION WE'RE EAGER TO MOVE FORWARD IN THIS NEW LINE OF BUSINESS SAYS PRICOR'S CHIEF FINANCIAL OFFICER DONALD WHITFIELD THAT IS WHAT PRICOR IS ABOUT 9306110150 930611 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN PRESSURING THE EUROPEAN COMMUNITY COMMISSION TO TAKE A TOUGH STANCE AT COMING TRADE TALKS WITH THE US AND JAPAN FRENCH PRIME MINISTER EDOUARD BALLADUR URGED MINIMAL CONCESSIONS THE EC US JAPAN AND CANADA ARE PURSUING AN ACCORD TO OPEN MARKETS RANGING FROM SEMICONDUCTORS TO SERVICES TO ALLOW WRAPPING UP THIS YEAR THE WORLD TRADE NEGOTIATIONS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE FRANCE FAVORS A GATT AGREEMENT SOON MR BALLADUR SAID BUT NOT AT ANY PRICE TO EUROPEAN INTERESTS FRANCE OPPOSES AN ECUS AGRICULTURE ACCORD REACHED LAST YEAR THAT SETS LIMITS ON SUBSIDIZED FARM EXPORTS AND WOULD HURT FRENCH FARMERS BUT FRANCE TO AVOID ISOLATION ON TRADE ISSUES HAS BACKED DOWN ON THE IMPORTANT OILSEEDS ISSUE AND INDICATED FLEXIBILITY ON OTHERS YET IT STILL DEMANDED THE ECUS FARM PACT BE RENEGOTIATED AND THE US ABANDON UNILATERAL TRADE ACTION EC OFFICIALS SAID THE FRENCH RHETORIC MAY BE AIMED AT THE POWERFUL FRENCH FARM LOBBY AND WOULD GIVE WAY TO REALISM AS OTHER GATT PACTS ARE REACHED THE WORST IS OVER FOR JAPAN'S ECONOMY THOUGH IT HASN'T STARTED TO RECOVER FROM THE TWOYEAR RECESSION THE ECONOMIC PLANNING AGENCY SAID THE AGENCY SAID THE DOWNTURN LARGELY HAS HIT BOTTOM BUT OTHER MINISTRIES WEREN'T SO SURE SO THE EPA NOTED THAT DESPITE SLUGGISHNESS MOVEMENTS TOWARD ECONOMIC RECOVERY ARE APPEARING THE EPA ESTIMATED THE INDEX OF ECONOMIC ACTIVITY STAYED ABOVE 50 ON A SCALE OF 100 IN MAY FOR THE THIRD MONTH IN A ROW HERALDING THE TURNAROUND TAIWAN'S CABINET APPROVED AND SENT TO PARLIAMENT A PLAN TO PAY COMPENSATION OF AS MUCH AS 190000 EACH FOR VICTIMS OF A MASSACRE BY GOVERNMENT TROOPS 46 YEARS AGO A 1992 GOVERNMENT REPORT ESTIMATED AT LEAST 18000 PEOPLE WERE KILLED WHEN NATIONALIST SOLDIERS FROM CHINA CRUSHED RIOTING BY NATIVE TAIWANESE THAT BEGAN FEB 28 1947 THE CABINET PLAN WOULD CREATE A 77 MILLION FUND FOR THE PAYMENTS TO RELATIVES OF PEOPLE KILLED MISSING JAILED OR INJURED THE PRIVATE SECTOR WILL BE ASKED TO DONATE TO THE FUND WHICH ALSO WOULD BE USED FOR MONUMENTS ACADEMIC RESEARCH AND COMMEMORATIVE ACTIVITIES FOR THE FIRST TIME TAHITI HAS AN INCOME TAX DESPITE ITS TOURISM RENOWN THE PACIFIC ISLAND LACKS A SOCIAL WELFARE SYSTEM AND HAS FEW GOOD ROADS AND INSUFFICIENT HOUSING AND HEALTH CARE TO PAY FOR IMPROVEMENTS FRENCH POLYNESIA WHICH INCLUDES TAHITI SET UP A FUND TO BE SUPPORTED BY NEW TAXES ON WINE GASOLINE AND PHONE SERVICE A 10 LEVY ON UNEARNED INCOME AND THE INCOME TAX THOUGH THE TOP RATE IS JUST 3 AND WAGES OF LESS THAN 12000 A YEAR ARE EXEMPT THE TAXES COULD RAISE 30 MILLION THIS YEAR THE PHILIPPINES HAS ABOLISHED 4987 GOVERNMENT JOBS REDUCING ITS PERSONNEL COSTS BY 227 MILLION PESOS 85 MILLION THIS YEAR UNDER THE BUREAUCRATIC STREAMLINING ORDERED LAST AUGUST A NEW ROUND OF JOB CUTS WILL BEGIN THIS YEAR MEANWHILE AN ADDITIONAL 20 TAX ON CIGARETTES EXPECTED TO RAISE 48 BILLION PESOS WON FINAL CONGRESSIONAL PASSAGE BOTH MEASURES ARE PART OF EFFORTS TO SHORE UP GOVERNMENT REVENUE AND CONTROL EXPENSES TO CUT THE 26 BILLIONPESO DEFICIT AND CONCLUDE AID TALKS WITH THE INTERNATIONAL MONETARY FUND THAILAND UNVEILED PLANS TO BUILD A NEW SEAT OF GOVERNMENT SAYING BANGKOK MAY BECOME UNLIVABLE BECAUSE OF CROWDING TRAFFIC JAMS AND POLLUTION BANGKOK HAS BECOME THE ADMINISTRATIVE CULTURAL FINANCIAL COMMERCIAL SOCIAL INDUSTRIAL AND DIPLOMATIC CENTER ALL ROLLED INTO ONE RADIO THAILAND SAID BUT THE ECONOMIC BOOM HAS ATTRACTED THRONGS OF JOBSEEKING THAIS FROM RURAL AREAS AND RESULTED IN UNPLANNED GROWTH THE INTERIOR MINISTRY CHOSE A 79000ACRE SITE NEAR CHACHOENGSAO 75 MILES EAST OF BANGKOK TO CREATE A CITY ON DEFORESTED PUBLIC LAND TO ACCOMMODATE ONE MILLION PEOPLE WITH GOVERNMENT BUILDINGS HOUSING FOR CIVIL SERVANTS SCHOOLS AND BUSINESSES THE SITE HAS GOOD PROXIMITY TO SEA AND AIR TRANSPORTATION AND INDUSTRY THE MINISTRY'S MASTER PLAN FOR THE NEW CITY IS TO BE COMPLETED WITHIN 10 MONTHS CONSTRUCTION COULD TAKE 16 YEARS AND COST 240 BILLION BAHT 954 BILLION OF THE 700000 ANNUAL TRAFFIC FATALITIES WORLDWIDE 500000 OCCUR IN DEVELOPING COUNTRIES ROAD SAFETY INTERNATIONAL TOLD A HIGHWAY SAFETY CONFERENCE IN MOROCCO MALAYSIANS PHONING NUMBERS THEY BELIEVE CONNECT WITH THE SPIRIT WORLD OVERLOADED THE 999 EMERGENCY LINE THOUSANDS OF CALLS TO NUMBERS STARTING WITH THREE 9S WERE ROUTED TO THE POLICE FIRE AND AMBULANCE CENTER ONCE CONNECTED UNSUSPECTING CALLERS ASKED FOR WINNING LOTTERY NUMBERS POSED QUESTIONS ABOUT HEAVEN AND CHANTED PRAYERS 9306110149 930611 RUSSIANS TAKE THE SOBRIETY CURE HERE AND THEN CARRY THE MESSAGE HOME BY IAN OLGEIRSON STAFF REPORTER OF THE WALL STREET JOURNAL HAVRE DE GRACE MD VLADIMIR SHINKAREV CONCEDES THAT HE BUILT HIS REPUTATION AS AN ARTIST DURING WHAT HE CALLS THE EPOCH OF HEROIC DRINKING IN RUSSIA UNDER COMMUNISM I PROMOTED ALCOHOL BECAUSE IT SOUNDED SO FUNNY SO ROMANTIC HE SAYS BUT HERE AT FATHER MARTIN'S ASHLEY A POSH ALCOHOLTREATMENT CLINIC OVERLOOKING THE CHESAPEAKE BAY HE'S COMPLETING AN ALCOHOL REHABILITATION PROGRAM AND DISCUSSING SOBRIETY MR SHINKAREV AND FELLOW ARTIST DMITRI SHAGIN WERE RECRUITED BY THE INTERNATIONAL INSTITUTE FOR ALCOHOLISM EDUCATION AND TRAINING TO BATTLE ALCOHOLISM IN RUSSIA WHICH HAS ONE OF THE HIGHEST INCIDENCES IN THE WORLD THE NONPROFIT ORGANIZATION BASED IN GREENWICH CONN IS PICKING UP THE 450ADAY TAB FOR EACH ARTIST'S STAY IN RETURN THE PAIR WILL PROMOTE SOBRIETY BACK IN ST PETERSBURG OVER THE LAST YEAR THE INSTITUTE HAS PAID FOR ABOUT TWO DOZEN RUSSIANS TO SOBER UP IN THE US AND THEN SPREAD THE WORD BACK HOME TREATMENTS USUALLY TAKE SEVERAL WEEKS THE ARTISTS WILL PROMOTE TEMPERANCE PRIMARILY THROUGH MITKI A COUNTERCULTURE MOVEMENT THEY LAUNCHED DURING COMMUNISM THAT HAS CARRIED A PROALCOHOL MESSAGE THE GROUP PUBLISHES A MANUAL ON LIVING ALONG WITH A MONTHLY NEWSLETTER THAT THEY SAY HAS A CIRCULATION OF 100000 BOTH FEATURE CARTOONS OF BEARDED DRINKING RUSSIANS ALONG WITH JOKES AND ALLUSIONS TO DRUNKENESS ALCOHOL ALSO PERVADES THE ARTISTS' PAINTINGS A SHINKAREV CANVAS ENTITLED DANCING BY YOURSELF SHOWS A DRUNK LURCHING IN FRONT OF A DOORWAY MR SHAGIN HAS PRODUCED PAINTINGS CALLED HANGOVER IN WINTER AND A BEER IN WINTER FEATURING HULKING INTOXICATED PEOPLE BENEATH HOODED SKIES THE TWO ARTISTS DECIDED TO DEAL WITH THEIR ALCOHOLISM AFTER CONCLUDING THAT THEIR ADDICTIONS WOULD UNDERMINE THEIR ART AND SHORTEN THEIR LIVES FROM THE INSTITUTE'S STANDPOINT THEY SEEMED LIKE POWERFUL VEHICLES FOR THE SOBRIETY MESSAGE BECAUSE OF MITKI'S POPULARITY WITH THE INTELLECTUALS AS WELL AS THEIR COUNTERCULTURE FOLLOWERS THEIR SOBRIETY COULD BE INVALUABLE IN CURRENT RUSSIAN SOCIETY EXPLAINS AN INSTITUTE SPOKESMAN MESSRS SHINKAREV AND SHAGIN AREN'T EXACTLY SURE HOW THEY'LL RECAST THEIR GROUP'S PROALCOHOL MESSAGE HERE THEY'RE MAINLY IMPRESSED BY HOW MUCH MORE HUMANE ALCOHOL TREATMENTS ARE IN THE US WHERE SPECIALISTS RELY ON TALKING THERAPIES MUTUAL SUPPORT AND HEALTHY LIVING IN CONTRAST RUSSIAN CURES ARE GENERALLY PUNITIVE AND OFTEN INVOLVE CHEMICAL IMPLANTS THAT INDUCE VOMITING COMPARED TO RUSSIA THIS IS LIKE PARADISE SAYS MR SHINKAREV ALOSHYA IVLEV THE ARTISTS' TRANSLATOR WAS BROUGHT TO FATHER MARTIN'S ASHLEY WITH ANOTHER GROUP OF RUSSIANS FOR TRAINING AND TREATMENT AFTER 17 FAILED THERAPIES AT HOME I AM A RUSSIAN AND WHEN I SAY I AM THREE YEARS SOBER PEOPLE WILL LISTEN TO ME HE EXPLAINS WHILE THEY EXPECT THEIR MISSION TO BE A DIFFICULT ONE THE TWO ARTISTS HAVE BEEN EAGER TO RETURN TO ST PETERSBURG WE ARE WORRIED ABOUT WHAT HAS HAPPENED TO OUR FRIENDS WHILE WE'VE BEEN GONE SAYS THE SOFTSPOKEN MR SHAGIN I AM SO ANXIOUS TO GET BACK AND SPREAD THE WORD 9306110148 930611 ECONOMY JOBLESS BENEFIT CLAIMS FELL IN LATEST WEEK MEMORIAL DAY CITED WASHINGTON INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS DECLINED A SEASONALLY ADJUSTED 2000 IN THE WEEK ENDED JUNE 5 TO 345000 THE LABOR DEPARTMENT SAID THE LATEST WEEK INCLUDED THE MEMORIAL DAY HOLIDAY AND CLAIMS NORMALLY DECLINE IN HOLIDAY WEEKS AS THERE ARE FEWER DAYS IN WHICH TO FILE THEM THE FOURWEEK AVERAGE OF JOBLESS CLAIMS ROSE 2000 IN THE JUNE 5 WEEK TO 342750 IN THE WEEK ENDED MAY 29 2712000 PEOPLE WERE RECEIVING STATE UNEMPLOYMENT BENEFITS DOWN 108000 FROM THE PREVIOUS WEEK OF THE PEOPLE COVERED BY UNEMPLOYMENT INSURANCE 26 WERE RECEIVING BENEFITS IN THE WEEK ENDED MAY 29 DOWN FROM 27 THE WEEK BEFORE 9306110147 930611 MESA AIR'S TRAFFIC SOARED IN MAY FARMINGTON NM MESA AIRLINES SAID MAY TRAFFIC MORE THAN DOUBLED TO 79300 MILLION REVENUE PASSENGER MILES FROM 30169 MILLION A YEAR EARLIER A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLYING ONE MILE THE INCREASE PARTLY REFLECTS THE ACQUISITION LAST YEAR OF WESTAIR HOLDING INC MESA'S MAY LOAD FACTOR OR PERCENTAGE OF SEATS FILLED INCREASED TO 49 FROM 446 A YEAR EARLIER IN THE FIRST FIVE MONTHS LOAD FACTOR INCREASED TO 488 FROM 415 9306110146 930611 FOREIGNAID PLAN FOR EXSOVIET STATES TOTALING 25 BILLION CLEARS HOUSE UNIT BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE HOUSE APPROPRIATIONS COMMITTEE DRAWING FROM A MIX OF PENTAGON AND FOREIGNAID FUNDS APPROVED A 25 BILLION PACKAGE OF ASSISTANCE FOR RUSSIA AND OTHER INDEPENDENT STATES OF THE FORMER SOVIET UNION EFFORTS TO STRIP 16 BILLION FROM THE WHITE HOUSEBACKED INITIATIVE FAILED ON A SIMPLE VOICE VOTE AND THE BIPARTISAN LEADERSHIP IS INCREASINGLY CONFIDENT THAT THE AID PLAN WILL PREVAIL WHEN IT COMES TO AN EXPECTED FLOOR VOTE NEXT WEEK AS APPROVED THE RUSSIAN AID PACKAGE IS PART OF A LARGER 146 BILLION BILL INCORPORATING BOTH SUPPLEMENTAL FUNDS FOR THE CURRENT FISCAL YEAR AND A NEARLY 13 BILLION FOREIGN ASSISTANCE BUDGET FOR THE YEAR BEGINNING OCT 1 AN ESTIMATED 979 MILLION FROM PENTAGON APPROPRIATIONS IS PART OF THE SAME MIX TAKEN TOGETHER THE COMMITMENTS ADD TO THE STRAIN ON THE DEFENSE AND FOREIGNAID BUDGETS FOR NEXT YEAR FOR EXAMPLE THE RUSSIAN AID PLAN MAKES AVAILABLE 125 MILLION FOR EXPORTIMPORT BANK CREDITS FOR POTENTIAL US SALES TO THE FORMER SOVIET UNION BUT ELSEWHERE THE BUDGET CRUNCH FORCED THE COMMITTEE TO CUT BACK ON THE BANK LOAN PROGRAM EVEN AS THE TROUBLED US COMMERCIAL AIRCRAFT INDUSTRY IS PRESSING CONGRESS FOR MORE SUPPORT TO COMPETE WITH THE EUROPEANSUBSIDIZED AIRBUS INDUSTRIE THE SQUEEZE IS AGGRAVATED BY THE FACT THAT NEITHER THE WHITE HOUSE NOR CONGRESS IS PREPARED YET TO ALTER THE MIX OF AID ALREADY GOING TO ISRAEL AND EGYPT THE MIDEAST PROGRAM IS AMONG THE MOST EXPENSIVE AND FASTEST SPENDING IN THE FOREIGNAID BUDGET AND THE RESULT IS IT CONSUMES MORE OF THE AVAILABLE OUTLAYS UNDER STATUTORY SPENDING CAPS FORCING A SKEWED APPROPRIATIONS PROCESS AND DEEPER CUTS THAN OTHERWISE MIGHT BE REQUIRED THE PENTAGON FACES SIMILAR DIFFICULTIES AS IT RATCHETS DOWN SPENDING THE 979 MILLION GOING FOR THE RUSSIAN AID PROGRAM WILL BE COUNTED AGAINST THE MILITARY'S BUDGET AS IT BEGINS TO SPEND IN THE NEXT FISCAL YEAR FEARFUL OF THIS RESULT PRODEFENSE LAWMAKERS AGREED TO THE COMMITMENT ONLY AFTER APPEALS FROM THE WHITE HOUSE AND IT WAS WITH SOME DISMAY YESTERDAY THAT PENNSYLVANIA REPS JOHN MURTHA AND JOSEPH MCDADE THE CHAIRMAN AND RANKING REPUBLICAN ON THE HOUSE DEFENSE APPROPRIATIONS PANEL FOUND THAT THE PENTAGON WAS ATTRIBUTING THE DECISION TO A CONGRESSIONAL INITIATIVE DEFENSE SECRETARY LES ASPIN'S OPERATION ALSO IRRITATED HIS FORMER COLLEAGUE REP DAVID OBEY D WIS CHAIRMAN OF THE FOREIGN OPERATIONS SUBCOMMITTEE AND THE PERSON WHO WILL SHEPHERD THE RUSSIAN AID PACKAGE THROUGH THE HOUSE MR OBEY'S LARGER FOREIGNAID BUDGET PROPOSES A 50 CUT FROM FUNDING FOR THE INTERNATIONAL MILITARY EDUCATION AND TRAINING OR IMET PROGRAM BOTH HE AND A STATE DEPARTMENT LIAISON WERE ANGERED WHEN THE DEFENSE DEPARTMENT SENT A LETTER PROTESTING THE MOVE EVEN AFTER THE WHITE HOUSE HAD ENDORSED THE BILL I DON'T GIVE A DAMN WHEN THE DEFENSE DEPARTMENT PROTESTS DECLARED MR OBEY IT SHOULD CHECK WITH THE WHITE HOUSE THE IRASCIBLE CHAIRMAN SAID HE INTENDS TO SEEK FURTHER CUTS FROM THE PROGRAM WHICH WOULD FALL TO 212 MILLION NEXT YEAR FROM ITS CURRENT 425 MILLION LEVEL IN CONTRAST WITH THE EUPHORIA THAT SURROUNDED THE FIRST DAYS OF THE NEW ADMINISTRATION THE BUDGET CHOICES NOW POSE AN OFTEN PAINFUL EXERCISE FOR DEMOCRATS AS THE MAJORITY PARTY MEETING BEHIND CLOSED DOORS A HOUSE APPROPRIATIONS PANEL AGREED TO PRESERVE 620 MILLION FOR THE ENERGY DEPARTMENT'S COSTLY SUPERCONDUCTING SUPERCOLLIDER BUT IN A SEPARATE SESSION THIS WEEK PROPONENTS OF THE RYAN WHITE PROGRAM TO ASSIST STATE AND LOCAL GOVERNMENTS IN THE TREATMENT OF AIDS PATIENTS WERE FORCED TO TAKE 100 MILLION FROM WHAT HAD BEEN PROPOSED FOR THE POPULAR HEAD START PROGRAM BENEFITING PRESCHOOL LOWINCOME CHILDREN 9306110145 930611 BUSINESS BRIEFS UNITED TECHNOLOGIES CORP'S PRATT & WHITNEY JET ENGINE UNIT RECEIVED A 48 MILLION ORDER FROM USAIR GROUP INC FOR JT8D ENGINE KITS NABORS INDUSTRIES INC COMPLETED ITS ACQUISITION OF LAND RIGS AND OTHER ASSETS OF GRACE DRILLING CO A UNIT OF WR GRACE & CO FOR 32 MILLION CENTRAL BANCSHARES OF THE SOUTH INC PLANS TO ACQUIRE FIRST PERFORMANCE NATIONAL BANK A SUBSIDIARY OF CLOSELY HELD RESOURCE BANCSHARES CORP FOR A MAXIMUM OF 36 MILLION BOMBARDIER INC'S NORTH AMERICAN TRANSPORTATION EQUIPMENT DIVISION PLANS TO INVEST ABOUT 41 MILLION CANADIAN DOLLARS US32 MILLION TO EXPAND AND MODERNIZE ONE OF ITS MANUFACTURING PLANTS BAUSCH & LOMB INC WILL ADD 300 ENTRYLEVEL JOBS TO ITS ROCHESTER NY CONTACT LENS PLANT THIS YEAR CALLAWAY GOLF CO SIGNED AN EXCLUSIVE LICENSING AGREEMENT WITH SPECIALTY RETAILER NORDSTROM INC TO DEVELOP GOLF SPORTSWEAR TO BE SOLD NATIONWIDE 9306110144 930611 IT IS UNLIKELY FOLKS FROM VIDALIA WILL BE OUT IN THE NOONDAY SUN BY SHAKIRA HIGHTOWER STAFF REPORTER OF THE WALL STREET JOURNAL NOONDAY TEXAS IS ALL SET FOR AN ANNUAL FESTIVAL THAT WON'T TAKE YOUR BREATH AWAY BUT JUST MIGHT BRING TEARS TO YOUR EYES THE EAST TEXAS COMMUNITY OF ABOUT 500 RESIDENTS WILL PAY TRIBUTE TO THEIR ONION WHICH THEY SAY IS A VARIETY THAT ADDS SPICE TO LIFE WITHOUT BEING PUNGENT YOU CAN EAT A NOONDAY ONION JUST LIKE YOU EAT AN APPLE SAYS PROUD NOONDAYER ELLEN AHL THEY'RE JUST THAT SWEET SURE THERE ARE OTHER SWEET ONIONS AND OTHER SWEETONION FESTIVALS IN FACT NOONDAY'S GALA MAY EVEN BE THE SMALLEST LEAST FAMOUS OF THE LOT REGIONS IN TEXAS CALIFORNIA WASHINGTON AND GEORGIA HAVE LARGER MORE EXTENSIVE ONION FESTIVALS SAYS NANCY TEKSTEN PROMOTIONAL DIRECTOR FOR THE NATIONAL ONION ASSOCIATION NOONDAY DOESN'T DISPUTE THAT YEAH OUR ONION FESTIVAL IS SMALLER THAN MOST CONCEDES RICHARD ASSUNTO A FESTIVAL OFFICIAL BUT A LOT OF THOSE FESTIVALS ARE SPONSORED BY CORPORATIONS A CORPORATE SPONSOR WOULD RUIN OUR ATMOSPHERE SO THE NOONDAY FESTIVAL MAKES UP WITH RELISH FOR WHAT IT LACKS IN SIZE THIS WEEKEND ATTENDEES AT THE NINTHANNUAL NOONDAY FESTIVAL CAN ENJOY COUNTRYMUSIC BANDS GOSPEL SINGING AND AN ELVIS LOOKALIKE CONTEST THERE WILL BE HOMEMADE BIRDHOUSES AND DOLLS AT THE ARTSANDCRAFTS BOOTHS TSHIRTS WITH ONION LOGOS AND THE WHAT'S COOKING IN NOONDAY ONION COOKBOOK WILL ALSO BE ON SALE AND ONIONORIENTED CULINARY DELIGHTS WILL PROBABLY INCLUDE ONIONFLAVORED ICE CREAM SNOW CONES AND CHOCOLATE CAKE BUT THE HIGHLIGHT OF THE FESTIVAL IS THE TEARJERKER STORYTELLING COMPETITION SAYS ELSIE CLARK WHO HELPS WITH FOOD PREPARATIONS THE RULES ARE SIMPLE TELL A STORY WHILE PEELING AN ONION IT'S HARD TO GET THE TEARS OUT BECAUSE THE ONIONS ARE SO MILD MR ASSUNTO EXPLAINS WELL MAYBE YOU HAVE TO BE THERE AND IN FACT SEVERAL THOUSAND PEOPLE PROBABLY WILL BE IN PAST YEARS ATTENDANCE HAS AVERAGED BETWEEN 6000 AND 7000 AND IN ONE MEMORABLE YEAR 12000 ONION ADDICTS SHOWED UP MR ASSUNTO SAYS THE BIG DRAW IS THE ONION ITSELF AND OF COURSE THERE IS A COMPETITION TO PICK THE BEST THE WINNER OF SIX SUCH CHAMPIONSHIPS IS EB SHELTON WHO OBVIOUSLY KNOWS HIS ONIONS BUT ISN'T SHARING HIS KNOWHOW I DON'T HAVE A SECRET FOR GROWING THEM HE ASSERTS BUT IF I DID I WOULDN'T TELL ONE THING THEY DON'T DO AT THIS FESTIVAL IS ELECT AN ONION QUEEN AS MR ASSUNTO SAYS THE ONIONS ARE THE BEAUTIES 9306110143 930611 OLYMPIC TRIALS AN ATLANTA ATTORNEY SPRINTS TO PULL OFF 1996 SUMMER GAMES COLOSSAL DIMENSIONS OF TASK ARE TESTING BILLY PAYNE YEARS BEFORE THE EVENT IN PETER UEBERROTH'S SHADOW BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA FEW THINGS MARK TWAIN OBSERVED ARE HARDER TO PUT UP WITH THAN THE ANNOYANCE OF A GOOD EXAMPLE FOR THE NEXT 1135 DAYS UNTIL THE OPENING OF THE 1996 OLYMPIC GAMES HERE BILLY PAYNE WILL HAVE TO PUT UP WITH PETER UEBERROTH MR UEBERROTH OF COURSE WAS THE LITTLEKNOWN OWNER OF A TRAVEL COMPANY WHO WENT ON TO MANAGE THE WILDLY SUCCESSFUL SUMMER OLYMPICS IN LOS ANGELES IN 1984 MR PAYNE WAS THE LITTLEKNOWN REALESTATE ATTORNEY WHO SPARKED ATLANTA'S IMPROBABLE CAMPAIGN TO CAPTURE THE GAMES FOR 1996 TODAY HE RUNS THE PRIZE HE DELIVERED TO THE CITY'S DOOR IS BILLY PAYNE ANOTHER PETER UEBERROTH FOR ATLANTA'S SAKE HE WILL HAVE TO BE AND MORE IN 1984 MR UEBERROTH PROVED THE GAMES COULD BE FINANCED BY PRIVATE ENTERPRISE SINCE THEN THE EVENT HAS BECOME A COMMERCIAL COLOSSUS CITIES TODAY ONCE AWARDED THE GAMES ARE EXPECTED TO RAISE HUNDREDS OF MILLIONS OF DOLLARS FROM TELEVISION NETWORKS AND CORPORATE BACKERS STAGE A SPECTACLE OF BIBLICAL PROPORTIONS AND END UP HOWEVER LARGE THE BILLS WITH A TIDY PROFIT IN THE CASE OF ATLANTA MR PAYNE IN THE NEXT THREE YEARS MUST BUILD AN ORGANIZATION BIG ENOUGH TO RANK IN THE MIDDLE OF THE FORTUNE 500 PRODUCE WHAT AMOUNTS TO THREE SUPER BOWLS A DAY FOR 16 DAYS AND DISMANTLE THE ENTIRE STRUCTURE OVERNIGHT BY TURNS HE WILL HAVE TO CONFRONT AMONG OTHERS UNIONS NEIGHBORHOODS POLITICIANS CONTRACTORS AND SPORTS FEDERATIONS FROM AROUND THE WORLD NOT TO MENTION THE EARTH ISLAND INSTITUTE IN SAN FRANCISCO WHICH WANTS ATLANTA TO INSTALL A TORCH THAT BURNS CLEANER THAN THE ONE USED IN THE BARCELONA OLYMPICS LAST SUMMER ALL THIS FOR A MAN WHO BEFORE LEADING THE CHARGE TO WIN THE OLYMPICS NEVER DIRECTED SO MUCH AS A HIGHSCHOOL TRACK MEET EVERY EMERALD CITY IS BASED ON A DREAM AND BILLY IS THE GREATEST OF DREAMERS SAYS JOEY REIMAN WHO HEADS HIS OWN ADVERTISING AGENCY HERE THE QUESTION IS IS HE A GREAT BUILDER SITTING IN HIS OFFICE ON A RECENT MONDAY AT 430 AM THE BETTER TO MAKE HIS DAILY CALLS TO EUROPE MR PAYNE PROFESSES TO BE A RELIABLE ARCHITECT I KNOW PEOPLE SAY HE'S NEVER MANAGED ANYTHING' BUT WHERE'S THE BOOK ON HOW TO RUN AN OLYMPICS HE ASKS THIS WOULDN'T BE AMERICA IF FOLKS WEREN'T WORRIED MR PAYNE HAS ALREADY PERSUADED FIVE COMPANIES TO SPONSOR THE ATLANTA GAMES AT 40 MILLION APIECE ALMOST 10 TIMES WHAT MR UEBERROTH GOT ON AVERAGE IN LOS ANGELES WITH SOME LASTMINUTE LOBBYING HE HELPED SAVE ATLANTA'S PLANNED 207 MILLION OLYMPIC STADIUM FROM BECOMING THE VICTIM OF A POLITICAL SHOOTOUT AND HE IS HIRING PEOPLE SUCH AS WILLIAM MOSS BUILDER OF WALT DISNEY CO'S EPCOT CENTER IN FLORIDA WHO HAVE SHOULDERED OLYMPICSIZED JOBS IN THE PAST BUT MR PAYNE HAS ALSO BANGED INTO SEVERAL HURDLES THE SAME MAN WHO CHAMPIONED ATLANTA AS A CITY OF RACIAL HARMONY IN ORDER TO GET THE GAMES BROUGHT BLACK LEADERS TO A BOIL OVER THE DEARTH OF MINORITY VOICES IN HIS INNER CIRCLE CRITICS DESCRIBE HIM AS BRUSQUE OVERPAID 1992 SALARY 530000 AND THINSKINNED HE IS GENUINELY HORRIFIED SAYS ANITA BEATY DIRECTOR OF THE LOCAL TASK FORCE FOR THE HOMELESS AT ANY SUGGESTION THAT THE OLYMPICS ISN'T THE BEST THING THAT EVER HAPPENED TO ATLANTA TO COMPLICATE MATTERS MR PAYNE'S HEALTH AND THE STATE OF ATLANTA'S OWN LEADERSHIP HAVE BECOME CONCERNS LAST MONTH MR PAYNE AGE 45 HAD CORONARY BYPASS SURGERY HIS SECOND IN 11 YEARS DOCTORS SAY THE PROBLEM IS HEREDITARY AND NOT A REFLECTION OF WORKDAYS THAT BEGIN BEFORE DAWN BUT SOME FRIENDS ARE WORRIED HE DOESN'T KNOW THE MEANING OF THE WORD PACE' SAYS ONE ATLANTA MEANWHILE HAS JUST LEARNED THAT ITS POPULAR MAYOR MAYNARD JACKSON WON'T SEEK REELECTION DESPITE EARLY CLASHES THE EXPANSIVE MAYOR AND THE ALWAYSINTENSE MR PAYNE CAME TO COMPLEMENT EACH OTHER WHAT'S MORE MR JACKSON A VETERAN POLITICIAN WAS SEEN AS ONE OF THE FEW PEOPLE WHO COULD SPEARHEAD THE CITY'S OWN EXTENSIVE PREPARATIONS FOR THE GAMES NOW MR PAYNE IS LOSING AN INFLUENTIAL LINK TO ATLANTA'S NUMEROUS NEIGHBORHOODS AND CONSTITUENCIES AND THE HARD PART LIES AHEAD NEXT MONTH OLYMPIC NEGOTIATORS WILL TRY TO PERSUADE A US TV NETWORK TO WRITE A CHECK FOR AT LEAST 450 MILLION TWICE WHAT ABC PAID FOR BROADCAST RIGHTS IN LOS ANGELES AFTER THAT MR PAYNE WILL FACE HIS BIGGEST CHALLENGE KEEPING EXPENDITURES IN LINE WITH BUDGETS AND AVOIDING A MONTREAL THAT CITY HOST TO THE 1976 OLYMPICS ENDED UP 1 BILLION IN THE RED SAYS MR UEBERROTH TODAY THIS IS THE TIME WHEN THE ATLANTA COMMITTEE WILL BE JUDGED AND REJUDGED BILLY PAYNE'S CRUSADE TO WIN THE GAMES BEGAN IN 1987 AN ALLAMERICA DEFENSIVE END AT THE UNIVERSITY OF GEORGIA IN THE LATE 1960S MR PAYNE FORMALLY WILLIAM P HAD GROWN UP IN ATLANTA AND RETURNED HOME AFTER GRADUATING FROM THE UNIVERSITY'S LAW SCHOOL HIS PLAN WAS SIMPLE FIRST BEFRIEND AS MANY MEMBERS OF THE INTERNATIONAL OLYMPIC COMMITTEE WHICH AWARDS THE GAMES AS POSSIBLE BECAUSE FRIENDS WERE MORE LIKELY TO VOTE FOR FRIENDS SECOND SWEAT THE DETAILS DETAILS LIKE THE MUSIC TO BE PLAYED AT SOCIAL FUNCTIONS WITH OLYMPIC OFFICIALS GEORGIA ON MY MIND AMONG OTHERS OR THE FLOWER ARRANGEMENTS ON THEIR DINNER TABLES ALL WERE SCRUTINIZED BY MR PAYNE GEORGE HIRTHLER A PARTNER IN THE ATLANTA DESIGN FIRM THAT PREPARED THE CITY'S 630PAGE BID RECALLS WHEN MR PAYNE PORING OVER THE DOCUMENTS NOTED A DISCREPANCY THE DIMENSIONS OF A BASKETBALL COURT HAD BEEN GIVEN AS 15 METERS BY 28 METERS ON ONE PAGE AND AS 17 METERS BY 28 METERS ON ANOTHER THE WHOLE KEY TO WINNING WAS TO NOT MAKE ANY MISTAKES SAYS MR PAYNE MISTAKES THOUGH HAVE BEEN PART OF RUNNING THE GAMES HIS PLAN LAST FALL TO REINTRODUCE GOLF TO THE OLYMPICS AT FAMED AUGUSTA NATIONAL GOLF CLUB HOME OF THE MASTERS TOURNAMENT ANGERED OLYMPIC OFFICIALS OVERSEAS AS WELL AS BLACK LEADERS IN ATLANTA THE FORMER POINTED OUT THAT OTHER SPORTS WERE ALREADY WAITING IN LINE TO JOIN THE GAMES THE LATTER OBJECTED TO AUGUSTA'S REPUTATION AS A CITADEL OF WHITE SOUTHERN ARISTOCRACY THE CLUB HAS ONE BLACK MEMBER ADMITTED IN 1990 MR PAYNE THOUGHT HE COULD HELP CHANGE THAT HE HAD THIS EVANGELICAL ZEAL SAYS WILLIAM CAMPBELL A CITY COUNCIL MEMBER IN ATLANTA THAT BY WAVING THE MAGIC WAND OF THE OLYMPICS OVER AUGUSTA THEY WERE GOING TO LOOK LIKE ALL OF AMERICA THERE WAS ALSO THE HOPE THAT BROADCAST RIGHTS TO GOLF ALONE COULD FETCH AS MUCH AS 20 MILLION RESENTMENT FLARED AGAIN IN MARCH WHEN THE COUNTY COMMISSION MET TO APPROVE PLANS TO BUILD THE OLYMPIC STADIUM ONE PROMINENT MEMBER MARTIN L KING III SON OF THE SLAIN CIVILRIGHTS LEADER HELPED FORM A MAJORITY TO BLOCK CONSTRUCTION HE WAS ANGRY PRIMARILY WITH TURNER BROADCASTING SYSTEM INC OVER ITS PLAN TO FINANCE UPKEEP OF THE FACILITY WHICH WILL BE USED BY TURNER'S ATLANTA BRAVES AFTER 1996 BUT MR KING ALSO LASHED OUT AT OLYMPIC ORGANIZERS THE SYMBOLS OF LOVE AND SHARING THAT WERE USED TO WIN THE OLYMPICS HE DECLARED IN A SPEECH HAD BEEN PLACED BACK IN THE PROP ROOM COLLECTING DUST AFTER MR KING'S COMMENTS MR PAYNE ASKED TO MEET I TOLD HIM YOU'VE GOT TO FIND A WAY TO MAKE THE COMMUNITY FEEL INVOLVED MR KING RECALLS IN PARTICULAR WHILE MINORITIES MADE UP ABOUT 40 OF ALL EMPLOYEES WITHIN ATLANTA'S OLYMPIC COMMITTEE NONE WERE AMONG MR PAYNE'S CLOSEST AIDES SPECIFICALLY MR KING PRESSED MR PAYNE TO HEAR OUT OFFICIALS AT ATLANTA UNIVERSITY CENTER A GROUPING OF SIX HISTORICALLY BLACK SCHOOLS OFFICIALS THERE HAD BEEN PUSHING OLYMPIC ORGANIZERS TO INCREASE THEIR PLANNED INVESTMENT OF 40 MILLION TO BUILD FACILITIES THERE THIS TIME MR PAYNE COMPROMISED HE PLEDGED TO NAME A SENIOR BLACK ADMINISTRATOR TO ATLANTA'S OLYMPIC COMMITTEE REPORTING TO HIM AND TO APPOINT EIGHT OTHER BLACKS TO TOP POSTS HE ALSO INCREASED OLYMPIC SPENDING AT ATLANTA UNIVERSITY CENTER TO ABOUT 50 MILLION ONE WEEK AFTER THE INITIAL SHOWDOWN MR KING CHANGED HIS VOTE AS DID TWO OTHER COUNTY COMMISSIONERS MR PAYNE HAD HIS STADIUM IT IS THAT KIND OF BALANCING ACT ACCORDING TO OLYMPIC WATCHERS THAT MR PAYNE WILL HAVE TO PERFORM REGULARLY IF ATLANTA IS TO BE SUCCESSFUL SUCH SKILLS APPEARED TO BE LACKING IN SOME OF HIS EARLIEST FINANCIAL DEALINGS IN LOS ANGELES MR UEBERROTH PLEADED POVERTY BY DESIGN WITH CONTRACTORS AND OTHERS AND ENDED UP WITH A SURPLUS OF 215 MILLION BUT MR PAYNE STARTED OUT BY PREDICTING THAT ATLANTA COULD END THE GAMES WITH A SURPLUS OF ABOUT 150 MILLION THAT WAS A STRATEGIC ERROR SAYS ECONOMIST DONALD RATAJCZAK OF GEORGIA STATE UNIVERSITY BY TELLING EVERYONE HOW LARGE HIS PROFIT WAS GOING TO BE EVERYONE STARTED LOOKING FOR A PIECE OF IT INDEED MR PAYNE ACKNOWLEDGES THAT ONE OF HIS BIGGEST DISAPPOINTMENTS HAS BEEN THE EFFORTS OF VIRTUALLY EVERYONE TO SEE WHAT ELSE THEY CAN GET US TO PAY FOR HE DESCRIBES AS HIS BIGGEST MISTAKE HIS BOAST ONE YEAR AGO THAT 80 OF THE DOZEN OR SO CORPORATE SPONSORS NEEDED TO SUPPORT THE GAMES WOULD BE ON BOARD BY THIS SPRING TO DATE FIVE NATIONSBANK HOME DEPOT INC SARA LEE CORP INTERNATIONAL BUSINESS MACHINES CORP AND ANHEUSERBUSCH COS ARE SIGNED BUT SOME POTENTIAL BACKERS HAVE CLEARLY BALKED AT THE 40 MILLION PRICE TAG HERE TOO COMPROMISE IS EVIDENT ATLANTA'S EFFORTS TO SECURE ANHEUSERBUSCH AS AN OLYMPIC BACKER HAD LANGUISHED FOR MORE THAN A YEAR ONE PROBLEM SAYS TONY PONTURO A VICE PRESIDENT AT THE COMPANY WAS THAT USE OF THE OLYMPIC LOGO WAS TO BE LIMITED TO THE FIRM'S BEER BUSINESS THEME PARKS AND FOOD DIVISIONS WEREN'T INCLUDED IN JANUARY MR PAYNE MET PERSONALLY WITH ANHEUSERBUSCH EXECUTIVES OVER BREAKFAST THE COMPANY INDICATED THAT A MORE CREATIVE PACKAGE MIGHT HELP TRANSLATION INCLUDE THE REMAINING DIVISIONS IN APRIL MR PAYNE GOT HIS PLEDGE FOR 40 MILLION AND ANHEUSERBUSCH GOT THE SPONSORSHIP RIGHTS FOR ALL ITS PRODUCTS HE WAS VERY TENACIOUS AND FLEXIBLE AT THE SAME TIME MR PONTURO SAYS OF MR PAYNE TODAY DAVID F D'ALESSANDRO SENIOR EXECUTIVE VICE PRESIDENT AT JOHN HANCOCK FINANCIAL SERVICES WHO HAS HAD TALKS WITH ATLANTA ABOUT A POSSIBLE SPONSORSHIP THINKS MR PAYNE WILL GET THE BACKERS HE NEEDS IT'S PROBABLY THE LAST TIME THE SUMMER GAMES ARE GOING TO BE HERE FOR 20 YEARS HE SAYS HOW ARE YOU GOING TO EXPLAIN TO YOUR BOARD THAT YOUR COMPETITOR HAS THE OLYMPIC RINGS IN HIS ADVERTISING AND YOU DON'T THE MOST DIFFICULT AREA IN WHICH MR PAYNE WILL HAVE TO COMPROMISE MAY BE HIS OWN LIFESTYLE A NOTORIOUS WORKAHOLIC HE SAYS HE IS LEARNING TO SLEEP FAST THESE DAYS GETTING THE SAME AMOUNT OF REST IN FOUR HOURS THAT I USED TO GET IN SEVEN EVEN HIS GOLF GAME IS TYPE A HE ALLOWS HIMSELF PRECISELY TWO HOURS ON THE COURSE IF HE CAN COMPLETE 18 HOLES IN THAT TIME FINE IF NOT HE STOPS ANYWAY WILL MR PAYNE BE AS SUCCESSFUL AS MR UEBERROTH LOS ANGELES HAD A DISTINCT ADVANTAGE LOW EXPECTATIONS IT FOLLOWED THREE TROUBLED GAMES IN MUNICH MONTREAL AND MOSCOW BUT ATLANTA FOLLOWS LAST SUMMER'S BARCELONA GAMES WIDELY REGARDED AS THE MOST STUNNING OLYMPICS IN MEMORY RAISING THE STAKES EVEN FURTHER THE RELENTLESSLY ENTHUSIASTIC MR PAYNE FREQUENTLY REFERS TO THE 1996 OLYMPICS THE CENTENNIAL CELEBRATION OF THE MODERN GAMES AS THE MOST IMPORTANT PEACETIME EVENT OF THE 20TH CENTURY WE CAN DO A MODEL T OR A LINCOLN TOWN CAR DEPENDING ON HOW THE MONEY COMES IN SAYS WILLIAM IDE AN ATLANTA ATTORNEY AND MEMBER OF THE OLYMPIC COMMITTEE'S BOARD OF DIRECTORS RIGHT NOW HE SAYS SMILING WE'RE A LITTLE CLOSER TO A MODEL T 9306110142 930611 MARKETING & MEDIA ADVERTISING MAYBE NEXT YEAR' IS HEARD AGAIN FROM SEEKERS OF SPENDING GROWTH BY KEVIN GOLDMAN AND LAURA BIRD MADISON AVENUE'S HOPES FOR A LONGAWAITED REBOUND IN AD SPENDING HAVE ALL BUT FIZZLED IN THE FACE OF WANING CONSUMER CONFIDENCE A NEW ROUND OF BUDGET CUTS BY ADVERTISERS AND UNCERTAINTY OVER THE COURSE OF THE CLINTON ADMINISTRATION MANY AD EXECUTIVES EARLIER THIS YEAR HAD HOPED THAT 1993 WOULD MARK THE END OF A SLUMP THAT HAS HELD DOWN AD SPENDING THE PAST THREE OR FOUR YEARS CONSUMERS SEEMED TO BE FEELING BETTER ABOUT THE FUTURE AND A SENSE OF NEW HOPE ACCOMPANIED THE ELECTION OF A NEW PRESIDENT BUT NOW SOME FORECASTERS ARE CUTTING THEIR ALREADYCONSERVATIVE ESTIMATES FOR ADSPENDING GROWTH THIS YEAR AS SOME NEWSPAPERS AND TELEVISION NETWORKS ALIKE SEE A RETURN TO STINGINESS THE BLEAK TREND IS DIFFICULT TO QUANTIFY BECAUSE AD AGENCIES ARE LOATH TO DISCUSS SPECIFIC CLIENTS BUT ONE LEADING AD EXECUTIVE CONFIRMS THAT FOR SOME COMPANIES A RETRENCHMENT HAS BEGUN THERE HAVE BEEN SOME REDUCTIONS SAYS ROY BOSTOCK CHAIRMAN AND CHIEF EXECUTIVE OF D'ARCY MASIUS BENTON & BOWLES THE AGENCY FOR A NUMBER OF BLUECHIP CLIENTS INCLUDING GENERAL MOTORS PHILIP MORRIS'S KRAFT GENERAL FOODS AND ANHEUSERBUSCH THE REDUCTION HE SAYS IS CLEARLY TIED TO LESS DEMAND FOR THE PRODUCT THAN WAS ANTICIPATED MR BOSTOCK ADDS THAT AT HIS AGENCY THE DOWNTURN IS ACROSS CATEGORIES WITH THE EXCEPTION OF DURABLE GOODS CONSUMER CATEGORIES HE SAYS AREN'T AS STRONG AS THE AGENCY HAD EXPECTED IT'S A SOFTENING HE SAYS SOME SPENDING PLANS HAVE HELD ANDY BERLIN PRESIDENT IF DDB NEEDHAM'S NEW YORK OFFICES SAYS HE WOULDN'T CALL THE HOPED FOR REBOUND A BUST BUT ADDS THAT THE RECOVERY WE SAW IN RETAIL SALES AND IN AUTOMOBILE SALES HASN'T CARRIED ACROSS ALL SECTORS WHERE AD SPENDING IS AN IMPORTANT ELEMENT OF PROMOTION FURTHER TROUBLING HE SAYS IS THAT PROFITS ARE STILL BEING MADE BY THE CUTTING OF AD BUDGETS WE DON'T HAVE A RECOVERY THAT IS EXCITING THE BAD NEWS SPREADS TO THE BROADCAST NETWORKS WHICH HOPED FOR ROBUST SALES IN THE SOCALLED UPFRONT MARKET OR ADS SOLD AHEAD OF THE FALL TV SEASON ONE BIG SPENDER CHRYSLER CORP HAS REDUCED ITS AD SPENDING TO SET ASIDE MONEY FOR A MAJOR BUY IN THE 1994 WINTER OLYMPIC GAMES ON CBS RATHER THAN SIMPLY EXPANDING ITS BUDGET SAYS ONE NETWORK EXECUTIVE THE NETWORKS ARE LOCKED IN A GAME OF CHICKEN WITH LARGE NATIONAL ADVERTISERS INDUSTRY EXECUTIVES SAY AS THE TWO SIDES ENGAGE IN THE ANNUAL RITE OF SUMMER IN SETTING AD PRICES AND SPENDING PLANS IN ADVANCE OF THE FALL PRIMETIME SEASON BROADCASTERS ARE FINDING OUT THAT MADISON AVENUE IS IN NO HURRY TO COMMIT TO DEALS EVERYBODY IS HOLDING BACK SAYS MARVIN GOLDSMITH SENIOR VICE PRESIDENT OF SALES AT CAPITAL CITIES/ABC HE STILL HOPES FOR A 3 TO 6 INCREASE OVER LAST YEAR'S 36 BILLION UPFRONT MARKET BUT ONE NETWORK ADVERTISING EXECUTIVE SAYS THAT AD SPENDING IS EXPERIENCING A DISAPPOINTING SLIGHT BOUNCE RATHER THAN A MAJOR BOOST AS THE NETWORKS HAD HOPED PACKAGED GOODS IN PARTICULAR AREN'T EAGER TO COMMIT BECAUSE THESE COMPANIES REALIZE THEY COULD COME IN AND BUY TIME ON THE NETWORKS AT THE LAST MINUTE AND PAY COMPETITIVE PRICES NO ONE IS SOLD OUT ANOTHER LACKLUSTER CATEGORY IS THE RETAIL DEPARTMENT STORE SOME ANALYSTS SAID FORECASTER ROBERT J COEN OF MCCANNERICKSON IS BEING TOO OPTIMISTIC IN ESTIMATING THAT NEWSPAPER AD GROWTH WILL GROW 7 THIS YEAR TO 29 BILLION THAT'S STILL TOO HIGH SAYS JIM DOUGHERTY AN ANALYST WITH DEAN WITTER REYNOLDS I DON'T SEE THAT IN ANY NEWSPAPER COMPANY I FOLLOW RETAIL ADVERTISERS THAT SPENT BIG IN THE 1980S ARE NOW BEING REPLACED BY OTHERS THAT DON'T ADVERTISE AS MUCH COMPANIES SUCH AS WALMART VS MACY THE WALMARTS TEND TO SPEND LESS THAN THE GENERAL DEPARTMENT STORES YET NEWSPAPERS POSTED A ROSY PERFORMANCE IN THE FIRST QUARTER OF 1993 THE NEWSPAPER ASSOCIATION OF AMERICA SAYS AD REVENUE ROSE 5 TO 698 BILLION COMPARED WITH A YEAR EARLIER RETAIL ADVERTISING ROSE 58 TO 36 BILLION AND CLASSIFIED ADS ROSE 57 TO 24 BILLION BUT IT REMAINS UNCLEAR WHETHER THE UPTURN IN FIGURES WILL BE SUSTAINED FOR THE BALANCE OF THE YEAR THE NEW YORK TIMES SAYS AD LINAGE FELL 48 IN THE FIRST QUARTER THE WALL STREET JOURNAL REPORTS A SLOWING OF ADVERTISING IN APRIL WE'RE FINDING THAT MANY CORPORATE ADVERTISERS ARE HOLDING BACK ON CAMPAIGNS SAYS A SPOKESMAN FOR DOW JONES & CO WHICH PUBLISHES THE JOURNAL THE ADVERTISING SLOWDOWN THE SPOKESMAN SAYS RELATES TO HOW THE ECONOMY IS GOING EVENLY BUT SLOWLY EDWARD MEYER CHAIRMAN AND CHIEF EXECUTIVE AT GREY ADVERTISING MAKES A SIMILAR ANALOGY OUT THERE WE HAVE A VERY QUIET LAKE WITH NO CURRENT IN ANY DIRECTION THE PROBLEM IS PEOPLE ARE RESERVING JUDGMENT THE UNCERTAINTY AMONG THE PUBLIC IS CLEARLY REFLECTED IN THE RELIABLE BAROMETER THE CONSUMER CONFIDENCE INDEX FROM THE CONFERENCE BOARD THE INDEX DROPPED LAST MONTH TO 615 ITS LOWEST PERFORMANCE SINCE CLINTON WAS ELECTED IN NOVEMBER ONCE CLINTON GETS SOMETHING THROUGH CONSUMER CONFIDENCE WILL SETTLE DOWN SAYS MICHAEL DREXLER EXECUTIVE VICE PRESIDENT WORLDWIDE MEDIA DIRECTOR AT BOZELL THE ADMINISTRATION HASN'T HAD A POSITIVE COHESIVE EFFECT ON ANYTHING THAT'S WORRISOME THE LEVEL OF CONFIDENCE HAS TO COME BACK AND SO IT WILL SAYS THE NEVERSAYDIE MR COEN AT MCCANN HIS FIRST PROJECTION FOR 1994 AD SPENDING IS WHAT ELSE AN INCREASE OF 7 TO 149 BILLION WELL AS THE SAYING GOES JUST WAIT UNTIL NEXT YEAR THE GENEVABASED GROUP WHICH REPRESENTS THE WORLD'S MAJOR GOLDMINING COMPANIES IS LAUNCHING THE PRINT CAMPAIGN IN ENGLISHLANGUAGE AND GERMANLANGUAGE PUBLICATIONS IN NORTH AMERICA EUROPE AUSTRALIA AND SOUTH AFRICA THEIR AIM IS TO HELP MINTS MARKET GOLD COINS IN THOSE REGIONS AND TO PROMOTE PUBLIC AWARENESS OF GOLD AS AN INVESTMENT TOOL SAID ELLIOT M HOOD WORLD GOLD COUNCIL CHIEF EXECUTIVE IN AN INTERVIEW IN ISTANBUL TURKEY ON THE EVE OF THE COUNCIL'S ANNUAL MEETING THE CAMPAIGN FROM GREY ADVERTISING USES THE MOTTO LIQUID SOLID GOLD THE CAMPAIGN'S INITIAL PHASE IS EXPECTED TO LAST UP TO THREE MONTHS 9306110141 930611 CREDIT MARKETS WAVE OF CORPORATE ISSUANCES GOES ON AS FIRMS SEEK HEDGE AGAINST THREAT OF RISING RATES BY TOM HERMAN AND TERENCE DONNELLY STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK MOST INTEREST RATES HELD STEADY YESTERDAY EVEN AS ANOTHER AVALANCHE OF CORPORATE BORROWING HIT THE CREDIT MARKETS COMPANIES SOLD MORE THAN 2 BILLION OF NEW CORPORATE ISSUES MOSTLY INTERMEDIATETERM DEBT DUE IN THREE TO 10 YEARS BUT FORD MOTOR CO IN AN UNUSUAL MOVE OFFERED 200 MILLION OF 50YEAR DEBENTURES A RARE BREED IN THE CORPORATE BOND MARKET AND 20 YEARS LONGER THAN EVEN THE LONGESTTERM US TREASURY BOND FORD'S DEBENTURES WHICH CARRY A 775 INTEREST RATE WERE PRICED TO YIELD 7856 THAT WAS ONLY 098 PERCENTAGE POINT ABOVE THE YIELD ON 30YEAR TREASURY BONDS ALSO ON YESTERDAY'S SLATE WAS A THREEPART SALE TOTALING 850 MILLION BY ALLSTATE CORP THE PROPERTY AND CASUALTY INSURER THAT RECENTLY RAISED ABOUT 24 BILLION IN THE BIGGEST INITIAL PUBLIC STOCK OFFERING EVER BY A US COMPANY ALLSTATE WHICH NOW IS 801OWNED BY SEARS ROEBUCK & CO OFFERED 300 MILLION OF FIVEYEAR NOTES 300 MILLION OF 10YEAR NOTES AND 250 MILLION OF 20YEAR DEBENTURES ALL THIS BORROWING CAME ON TOP OF MORE THAN 35 BILLION OF NEW CORPORATE BOND ISSUES WEDNESDAY AS COMPANIES CONTINUE TO RUSH TO TAKE ADVANTAGE OF UNUSUALLY LOW BORROWING COSTS THIS BORROWING FLOOD REPRESENTS A HEDGE BY CORPORATIONS AGAINST THE THREAT OF RATES GOING UP SAID WALID CHAMMAH MANAGING DIRECTOR AND HEAD OF THE TAXABLE FIXEDINCOME CAPITAL MARKETS GROUP AT FIRST BOSTON CORP THERE IS A LOT OF CONCERN ABOUT INFLATION ESPECIALLY AHEAD OF TODAY'S GOVERNMENT REPORT ON PRODUCER PRICES AND TUESDAY'S REPORT ON CONSUMER PRICES BAD NEWS ON INFLATION COULD PERSUADE FEDERAL RESERVE OFFICIALS TO RAISE SHORTTERM INTEREST RATES SOON FED OFFICIALS ALREADY HAVE INDICATED THAT THE PRODUCER AND CONSUMER PRICE REPORTS MAY BE HIGHLY INFLUENTIAL IN DETERMINING WHETHER THE CENTRAL BANK FINALLY PULLS THE TRIGGER AND RAISES RATES SOME PRIVATE ECONOMISTS INSIST THE LATEST WAVE OF INFLATION FEARS EVENTUALLY WILL PROVE TO BE YET ANOTHER IN A LONG SERIES OF FALSE ALARMS THEY ARGUE THAT THE ECONOMY REMAINS FAR TOO FRAGILE TO JUSTIFY A MOVE BY THE FED TO RAISE RATES BUT A RECENT GOVERNMENT REPORT SHOWING UNEXPECTEDLY LARGE EMPLOYMENT GAINS IN MAY EASED FEARS AMONG SOME FED OFFICIALS ABOUT THE ECONOMY THUS IF INFLATION APPEARS TO BE RUNNING CLOSER TO 4 THAN 3 THE FED MAY REACT BY BOOSTING THE INTEREST RATE ON FEDERAL FUNDS OR OVERNIGHT LOANS THAT BANKS CHARGE EACH OTHER BY ONEQUARTER PERCENTAGE POINT TO 325 RAISING RATES NOW MIGHT REDUCE THE NEED FOR BIGGER BOLDER MOVES LATER A QUICK FED MOVE NOW COULD REMIND INVESTORS OF THE FED'S DETERMINATION TO COMBAT INFLATION AND THUS LEAD TO LOWER RATHER THAN HIGHER LONGTERM INTEREST RATES SOME ANALYSTS SAY LONGTERM BOND YIELDS INCHED LOWER YESTERDAY AND PRICES OF LONGTERM TREASURY BONDS POSTED VERY SLIGHT GAINS THE TREASURY'S 30YEAR BONDS ROSE 1/8 POINT OR 125 FOR EACH 1000 FACE AMOUNT TO 103 5/32 THEIR YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE DIPPED TO 687 FROM 688 INTERMEDIATETERM AND SHORTTERM RATES WERE LITTLE CHANGED THE FED'S DEDICATION TO FIGHTING INFLATION WAS UNDERSCORED YESTERDAY BY SUSAN M PHILLIPS A FED GOVERNOR SPEAKING AT A LUNCHEON HERE OF THE WOMEN'S ECONOMIC ROUND TABLE MS PHILLIPS SAID THE FED ALWAYS IS CONCERNED ABOUT INFLATION AND REMAINS JUST AS DEDICATED AS EVER TO KEEPING A LID ON INFLATION SHE DECLINED THOUGH TO GIVE ANY HINTS ABOUT FED POLICY SOME TRADERS ATTRIBUTED YESTERDAY'S SLIGHT BONDPRICE GAINS LARGELY TO SPECULATION THAT THE PRODUCER PRICE REPORT TO BE RELEASED THIS MORNING WILL SHOW LITTLE OR NO CHANGE ACCORDING TO A SURVEY OF 10 ECONOMISTS BY DOW JONES CAPITAL MARKETS REPORT TODAY'S REPORT WILL SHOW THE PPI INDEX FOR MAY WAS UNCHANGED ANALYSTS ALSO EXPECT THE SOCALLED CORE RATE EXCLUDING FOOD AND ENERGY TO SHOW A MODERATE INCREASE OF 02 BUT BETTING ON GOVERNMENT INFLATION REPORTS CAN BE HIGHLY TREACHEROUS AS TRADERS HAVE LEARNED IN RECENT MONTHS THUS MANY INVESTORS YESTERDAY RETREATED TO THE SIDELINES AWAITING TODAY'S NEWS YESTERDAY WAS A DAY FOR WAITING IN THE FOXHOLES SAID WARD MCCARTHY OF STONE & MCCARTHY RESEARCH ASSOCIATES IN PRINCETON NJ MR MCCARTHY EXPECTS THE PRODUCER PRICE REPORT TO SHOW NO CHANGE WITH THE CORE RATE UP 03 THE OVERALL NUMBER WILL BE GOOD BUT THE CORE RATE WILL STILL HAVE SOME ELEMENTS FOR CONCERN HE SAID ALL IN ALL THOUGH I DON'T THINK IT'S THE KIND OF NUMBER THE FED WILL TIGHTEN ON HE TOLD DOW JONES CAPITAL MARKETS REPORT DESPITE THE LARGE VOLUME OF NEW CORPORATE BOND ISSUES THIS WEEK MANY HAVE SOLD BRISKLY FOR EXAMPLE FORD'S UNUSUAL 50YEAR DEBENTURE ISSUE YESTERDAY BLEW OUT THE DOOR SAID CHARLES MORRISON A PORTFOLIO MANAGER AND CORPORATE BOND SPECIALIST AT FIDELITY INVESTMENTS IN BOSTON MR MORRISON ADDED THAT FIDELITY DIDN'T BUY ANY OF THE FORD ISSUE WE DON'T TYPICALLY BUY THAT LONG DURATION PAPER AND I DON'T SEE TREMENDOUS VALUE THERE AT A YIELD OF ONLY 098 PERCENTAGE POINT ABOVE 30YEAR TREASURY BONDS WE WOULD BUY THAT LONG PAPER IF WE DID SEE VALUE BUT WE JUST DIDN'T FEEL THIS DID HAVE VALUE HE SAID THE CORPORATE MARKET CONTINUES TO SHOW TREMENDOUS STRENGTH IN THE FACE OF HUGE NEW ISSUANCE THIS WEEK MR MORRISON SAID MUTUAL FUNDS AND INSURANCE COMPANIES HAVE BEEN BIG BUYERS OF CORPORATE ISSUES GOLDMAN SACHS & CO HEADED THE UNDERWRITING GROUP ON THE FORD DEBENTURE ISSUE THE DEBENTURES WHICH ARE NONCALLABLE ARE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE DEBENTURES DUE JUNE 15 2043 WERE PRICED AT 98678 WHICH PRODUCED THE 7856 YIELD A GOLDMAN SPOKESMAN SAID WHILE 50YEAR ISSUES ARE HIGHLY RARE THERE HAVE BEEN A FEW OTHERS LATELY A DEVELOPMENT THAT SOME FINANCIAL EXPERTS VIEW AS A SIGN OF THE STRENGTH OF THE US CAPITAL MARKETS AND A HIGHLY VALUABLE SOURCE OF LONGTERM MONEY EARLIER THIS YEAR FOR EXAMPLE BOEING CO AND CONSOLIDATED RAIL CORP EACH ISSUED 50YEAR BONDS ALSO NONCALLABLE AT THE TIME CONRAIL'S TREASURER DESCRIBED THE 50YEAR ISSUE AS A UNIQUE OPPORTUNITY ADDING I'VE NEVER SEEN SUCH A CHEAP SOURCE OF LONGTERM CAPITAL MR CHAMMAH OF FIRST BOSTON SAID THE LARGE AMOUNT OF BORROWING THIS WEEK PARTLY REFLECTED FEARS ABOUT TODAY'S INFLATION REPORT AND ITS POSSIBLE IMPACT ON BORROWING COSTS ALSO BOND YIELDS ARE VERY CLOSE TO THEIR LOWEST LEVELS OF EARLIER THIS YEAR THUS A LOT OF ISSUERS ARE SIMPLY TAKING ADVANTAGE OF GOOD MARKET CONDITIONS TO FLOAT NEW DEBT ISSUES MR CHAMMAH SAID FOR EXAMPLE THE TREASURY'S 30YEAR BONDS NOW HAVE A YIELD THAT IS LESS THAN 020 PERCENTAGE ABOVE THEIR LOWEST LEVELS OF THIS YEAR FOR THE THIRD DAY IN A ROW CORPORATIONS RUSHED TO ISSUE LARGE AMOUNTS OF NEW DEBT INVESTORS YESTERDAY WERE OFFERED ABOUT 23 BILLION OF NEW DEBT THAT BROUGHT THIS WEEK'S TOTAL TO 99 BILLION THE LARGEST IN ABOUT THREE MONTHS ACCORDING TO SECURITIES DATA CO SYNDICATE OFFICIALS SAID ONE REASON FOR THE BORROWING RUSH IS THAT COMPANIES WANTED TO LOCK IN CURRENT INTEREST RATES BEFORE THE REPORTS ON PRODUCER PRICES TODAY AND ON CONSUMER PRICES TUESDAY BECAUSE INVESTORS WERE FOCUSING ON THE NEWISSUE MARKET TRADING IN THE SECONDARY OR RESALE MARKETS WAS LACKLUSTER TRADERS SAID PRICES OF HIGHGRADE AND HIGHYIELD BONDS ENDED FLAT TO 1/8 POINT HIGHER BUT FEW ISSUES CHANGED HANDS SOME TRADERS MARVELED AT INVESTORS' WILLINGNESS TO SNAP UP FORD'S 50YEAR DEBENTURES AT A TIME WHEN LONGTERM BOND YIELDS ARE NEAR THEIR LOWEST LEVELS OF THE YEAR AND WHEN MANY ANALYSTS ARE EXPECTING HIGHER RATES BUT SOME ANALYSTS ARE BULLISH ON LONGTERM BONDS THEY THINK INTEREST RATES WILL DROP FURTHER WHETHER OR NOT THE FED TIGHTENS CREDIT BECAUSE THEY EXPECT LITTLE OR NO INCREASE IN INFLATION MEANWHILE INVESTORS CONTINUED TO SNAP UP NEW HIGHYIELD HIGHRISK JUNK BONDS NEARLY 400 MILLION OF NEW JUNK BONDS WERE OFFERED YESTERDAY INCLUDING DEALS FROM COMPUTER RETAILER COMPUSA INC AND MUSICLAND STORES CORP A MUSIC AND VIDEO RETAILER THAT ALSO OPERATES UNDER THE SAM GOODY NAME YET DESPITE THE LARGE NUMBER OF NEW HIGHYIELD OFFERINGS LATELY SECONDARY PRICES CONTINUE TO CLIMB ONE REASON IS SPECULATION THAT YIELDHUNGRY INVESTORS WILL CONTINUE TO POUR NEW MONEY INTO HIGHYIELD MUTUAL FUNDS WHILE LONGTERM TREASURY BOND PRICES ROSE SLIGHTLY MOST OTHER ISSUES WERE LITTLE CHANGED FOR EXAMPLE THE TREASURY'S 625 NOTES DUE IN 2003 ROSE 1/32 POINT TO 101 13/32 TO YIELD 605 THE 5375 FIVEYEAR NOTES WERE UNCHANGED AT 100 5/32 YIELDING 532 AND THE 4125 TWOYEAR NOTE ALSO WAS UNCHANGED AT 99 22/32 FOR A YIELD OF 428 SHORTTERM TREASURY BILLS ALSO WERE FLAT THE YIELD ON THE LATEST ONEYEAR BILLS WAS UNCHANGED AT 359 THE LATEST THREEMONTH BILLS WERE QUOTED AT A YIELD OF 317 UP FROM 316 WEDNESDAY WHILE SIXMONTH BILLS YIELDED 334 DOWN FROM 335 IF THE FEDERAL RESERVE RAISES THE FEDERAL FUNDS RATE LOOK FOR SIZABLE INCREASES IN INTERMEDIATETERM RATES ANALYSTS WARN IF THE FED ACTUALLY GOT INTO THE PROCESS OF TIGHTENING WE COULD SEE THE TWOYEAR GET BACK TO 150 PERCENTAGE POINTS ABOVE THE FEDERAL FUNDS RATE SAID DANA JOHNSON HEAD OF MARKET ANALYSIS AT FIRST CHICAGO CAPITAL MARKETS THE TWOYEAR NOTE YIELD NOW STANDS AT 128 PERCENTAGE POINTS ABOVE THE 3 FEDERAL FUNDS RATE AS FOR LONGTERM BOND YIELDS I'M PRETTY MUCH OF THE OPINION THAT THE LONG END WOULD GO DOWN A LITTLE BIT IN PRICE BUT NOT AS MUCH AS THE SHORT END MR JOHNSON SAID PRICES OF MORTGAGE SECURITIES ENDED MOSTLY UNCHANGED IN SECONDARY ACTIVITY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR JUNE DELIVERY ENDED 1/32 HIGHER AT 100 19/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 ISSUES ENDED UNCHANGED AT 100 25/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED UNCHANGED AT 100 22/32 MEANWHILE MORTGAGE REFINANCE ACTIVITY CONTINUES ITS DOWNWARD SLIDE THE MORTGAGE BANKERS ASSOCIATION'S WEEKLY REFINANCE INDEX DROPPED TO 7372 IN THE WEEK ENDED JUNE 4 FROM A REVISED 7707 THE PREVIOUS WEEK WHILE STILL HIGH THE SLIDE IN THE INDEX PROVES REFINANCE ACTIVITY IS EBBING A FACT MARKET PARTICIPANTS HAVE LARGELY PRICED INTO THE SECONDARY MARKET IN THE PRIMARY MARKET FOR REAL ESTATE MORTGAGE INVESTMENT CONDUITS PAINEWEBBER INC PRICED FANNIE MAE REMIC SERIES 1993117 A 400 MILLION ISSUE BACKED BY 15YEAR 65 SECURITES AND LEHMAN BROTHERS INC DOUBLED THE SIZE OF A FREDDIE MAC ISSUE SERIES 1547 TO 1 BILLION THE DEAL IS BACKED BY 30YEAR 7 SECURITIES IN THE ASSETBACKED MARKET PRUDENTIAL SECURITIES INC PRICED A FOURPART 214 MILLION ISSUE OF CERTIFICATES BACKED BY HOMEEQUITY LOANS FOR MONEY STORE INC THE 1015 MILLION TWOYEAR CLASS WAS PRICED TO YIELD 5378 PRICES OF MUNICIPAL BONDS ENDED GENERALLY UNCHANGED TO 1/8 POINT HIGHER AMONG SECONDARY ISSUES THE MASSACHUSETTS WATER RESOURCE AUTHORITY'S 500 SERIES B REFUNDING BONDS OF 2022 CLOSED 1/8 HIGHER AT 86 1/2 TO YIELD 597 THE KISSIMMEE UTILITY AUTHORITY OF FLORIDA'S 550 ELECTRIC SYSTEM BONDS OF 2015 ENDED UNCHANGED AT 97 3/4 TO YIELD 564 MUNI SPECIALISTS SAY THE MARKET STILL HAS A VERY SOLID UNDERPINNING THAT'S PARTLY DUE TO CONCERNS ABOUT A WAVE OF BOND CALLS ON JULY 1 INVESTORS TEND TO STOCK UP ON SECURITIES BEFORE BIG CALL DATES TO MAKE SURE THEY AREN'T LEFT SCRAMBLING FOR MUNIS BUT PRICE ACTION COULD BECOME VOLATILE IN THE NEXT FEW SESSIONS AS MARKET PARTICIPANTS MULL OVER THE COMING MAY INFLATION DATA 9306110140 930611 LAW LEGAL BEAT SEXUAL ABUSE LAWSUIT CHARGES RACKETEERING BY CHURCH BISHOPS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL A PRIEST AND FIVE OTHERS WHO CLAIM TO HAVE BEEN SEXUALLY ABUSED FILED A RACKETEERING SUIT AGAINST FOUR ROMAN CATHOLIC BISHOPS CHARGING THAT THEY COVERED UP A PATTERN OF SEXUAL ABUSE BY TWO PRIESTS THE SUIT FILED IN FEDERAL COURT IN CAMDEN NJ SEEKS TO BE MADE A CLASS ACTION ON BEHALF OF OTHERS ALLEGEDLY ABUSED BY THE TWO PRIESTS THE SUIT IS BELIEVED TO BE THE FIRST CLASSACTION COMPLAINT LODGED AGAINST CHURCH LEADERS IN A SEXUALABUSE CASE AND ALSO THE FIRST TO ALLEGE RACKETEERING IT IS PART OF A MOUNTING NUMBER OF LAWSUITS AGAINST CHURCHES NATIONWIDE THE FASTEST GROWING AND MOST SENSATIONAL OF WHICH INVOLVE ALLEGATIONS OF SEXUAL ABUSE BY MINISTERS AND PRIESTS ALL SIX PLAINTIFFS INCLUDING THE REV GARY R HAYES A PASTOR IN HENDERSON KY ALLEGE THAT THEY WERE REPEATEDLY MOLESTED AS YOUTHS BY CATHOLIC PRIESTS IN NEW JERSEY AND RHODE ISLAND BETWEEN 1965 AND 1972 THE SUIT NAMES THE REV JOSEPH F MCGARVEY A PRIEST IN CAMDEN NJ WHO IS ON LEAVE FROM HIS CHURCH ALSO NAMED IS THE REV WILLIAM C O'CONNELL WHO WAS REMOVED FROM HIS PROVIDENCE RI CHURCH IN 1985 AFTER HE WAS CONVICTED OF UNRELATED CRIMINAL SEXABUSE CHARGES INVOLVING CHILDREN NEITHER OF THE TWO PRIESTS COULD BE REACHED FOR COMMENT THE SUIT SEEKS DAMAGES FOR ALLEGED SEXUAL BATTERY AND FALSE IMPRISONMENT AGAINST THE TWO PRIESTS AND FOR ALLEGED NEGLIGENT HIRING AND SUPERVISION FRAUD AND CONSPIRACY AGAINST THE FOUR BISHOPS WHO SUPERVISED THE PRIESTS' CHURCHES ALSO NAMED IN THE COMPLAINT WAS THE NATIONAL CATHOLIC CONFERENCE OF BISHOPS LAWSUITS ALLEGING CHILDHOOD SEXUAL ABUSE BY PRIESTS HAVE BEEN GROWING IN RECENT YEARS BECAUSE MANY STATES NOW RECOGNIZE THAT YOUNG VICTIMS OF SEXUAL ABUSE OFTEN REPRESS THEIR MEMORIES COURTS IN AT LEAST 10 STATES ARE ALLOWING CLAIMS TO BE FILED YEARS AFTER THE ALLEGED EVENT USUALLY WITHIN A SET PERIOD AFTER THE VICTIMS BECOME AWARE OF THE ABUSE AT THE SAME TIME THERE HAS BEEN A JUMP IN THE SIZE OF JURY AWARDS BECAUSE OF THE GROWING AVAILABILITY OF PUNITIVE DAMAGES IN SUCH CASES THE SURGE IN LITIGATION HAS COST INSURERS FOR ROMAN CATHOLIC CHURCHES AND DIOCESES ALONE SOME 400 MILLION IN SETTLEMENTS AND VERDICTS ACCORDING TO ONE ESTIMATE BASED ON EXTRAPOLATIONS FROM PUBLICLY AVAILABLE FIGURES CHURCH OFFICIALS WHILE CONCEDING THAT SUITS ARE INCREASING SAY PAYOUTS HAVE TOTALED CLOSER TO 40 MILLION TO 60 MILLION INSURANCE COMPANIES MEANWHILE HAVE REACTED BY LOWERING POLICY LIMITS FOR CHURCHES OF ALL DENOMINATIONS AND EXCLUDING COVERAGE FOR SUCH INTENTIONAL ACTS AS SEXUAL ABUSE THE SUIT SEEKS TO BE MADE A CLASS ACTION ON BEHALF OF AN ESTIMATED 50 TO 100 POTENTIAL CLAIMANTS SAID STEPHEN C RUBINO A LAWYER IN VENTNOR NJ WHO FILED THE COMPLAINT FOR THE SUIT TO ACHIEVE CLASSACTION STATUS A JUDGE WILL HAVE TO DETERMINE WHETHER THE PLAINTIFFS ARE SIMILARLY SITUATED THAT IS WHETHER THERE ARE SUFFICIENT SIMILARITIES BETWEEN THE WRONGFUL ACTS THEY HAVE ALLEGED AND THE INJURIES THEY CLAIMED JEFFREY ANDERSON A MINNEAPOLIS ATTORNEY WHO SPECIALIZES IN SEX ABUSE CASES AGAINST CHURCHES SAID THAT CERTIFICATION AS A CLASS ACTION MAY BE DIFFICULT TO ACHIEVE BECAUSE THE NATURE OF SEX ABUSE INJURIES IS DEEPLY PERSONAL AND INDIVIDUAL THE RACKETEERING ALLEGATION ALSO COULD BE A PROBLEM SAID MR ANDERSON WHO REPRESENTS PLAINTIFFS IN MORE THAN 150 SEX ABUSE CASES PENDING AGAINST CATHOLIC CLERGY NATIONWIDE ALLEGATIONS OF RACKETEERING WHICH USUALLY REFER TO A PATTERN OF SERIOUS CRIMES COMMITTED THROUGH SOME ORGANIZATION USUALLY ARE RESERVED FOR CLAIMS INVOLVING BUSINESS OR PROPERTY LOSS NOT PERSONAL INJURY HE SAID BUT MR RUBINO MAINTAINED THE RACKETEERING CLAIM SHOULD APPLY IN THIS CASE BECAUSE THE PATTERN OF ALLEGED ABUSE OCCURRED ON CHURCHSPONSORED TRIPS FOR WHICH PLAINTIFFS' PARENTS PAID MONEY THE COMPLAINT ALLEGES THAT THE TWO PRIESTS NAMED IN THE SUIT PLIED THE BOYS WITH ALCOHOL AND TOOK ADVANTAGE OF THEIR INTOXICATED CONDITION THE REV HAYES 40 YEARS OLD CONTENDS THAT HE FILED A FORMAL COMPLAINT WITH THE CHURCH OF HIS CHILDHOOD IN CAMDEN IN DECEMBER BUT THAT NO ACTION WAS TAKEN A SPOKESMAN FOR THE DIOCESE IN CAMDEN ACKNOWLEDGED THAT AN INVESTIGATION WAS BEGUN BUT SAID IT WAS SUSPENDED AFTER THE REV HAYES CONTACTED HIS OWN ATTORNEY A SPOKESMAN FOR THE DIOCESE IN PROVIDENCE SAID THERE WAS NO CONNECTION BETWEEN THE FORMER REV O'CONNELL'S CRIMINAL CONVICTION FOR CHILD ABUSE IN 1985 AND THE CLAIMS LODGED AGAINST HIM IN THE CIVIL SUIT THE ROMAN CATHOLIC CHURCH HAS REVAMPED THE WAY IT HANDLES COMPLAINTS OF SEX ABUSE BY PRIESTS SAID WILLIAM HALPIN THE SPOKESMAN FOR THE DIOCESE IN PROVIDENCE DECADES AGO HE SAID REPORTED CASES OF SEXUAL ABUSE WERE CONSIDERED SEXUAL TRANSGRESSIONS OR SINS NOT A POTENTIALLY COMPULSIVE DISORDER REQUIRING THAT CLERGYMEN REFRAIN FROM CONTACT WITH CHILDREN ALL SIX PLAINTIFFS IN THE SUIT BELONG TO SURVIVORS NETWORK OF THOSE ABUSED BY PRIESTS OR SNAP A NATIONAL SELFHELP GROUP BASED IN CHICAGO MR RUBINO AND MEMBERS OF THE GROUP SAID THAT THE GROUP HAS NO AFFILIATION WITH THE LAWYERS WHO FILED THE SUIT LEONA HELMSLEY'S PRISON SENTENCE FOR TAX EVASION WAS REDUCED MAKING HER ELIGIBLE FOR RELEASE IN JANUARY US DISTRICT JUDGE THOMAS P GRIESA IN NEW YORK CUT THE FORMER HOTEL EXECUTIVE'S FOURYEAR SENTENCE TO 30 MONTHS WITH CREDIT FOR GOOD BEHAVIOR THE 72YEAROLD MRS HELMSLEY WILL BE RELEASED AFTER HAVING SPENT 21 MONTHS AS A GUEST OF THE US BUREAU OF PRISONS JUDGE GRIESA SAID HE ORDERED THE REDUCTION BECAUSE THE US PAROLE COMMISSION HAD REFUSED TO GRANT MRS HELMSLEY WHO WAS CONVICTED IN 1989 AN EARLY RELEASE UNDER HER FOURYEAR SENTENCE MRS HELMSLEY COULD HAVE BEEN ELIGIBLE FOR PAROLE AFTER SERVING AS LITTLE AS 16 MONTHS IN PRISON JUDGE GRIESA SAID IN HIS RULING THAT THE PAROLE BOARD HAD BEEN UNDULY HARSH IN LIGHT OF MRS HELMSLEY'S AGE AND THE POOR HEALTH OF HER HUSBAND REALESTATE DEVELOPER HARRY HELMSLEY IT ISN'T CLEAR WHETHER MRS HELMSLEY WHOSE FACE ONCE GRACED THE ADS FOR THE HELMSLEY HOTELS WILL RETURN TO WORK AT THE COMPANY AFTER HER RELEASE AN OFFICIAL AT THE HELMSLEY HOTEL IN NEW YORK DECLINED TO COMMENT MRS HELMSLEY'S SPOKESMAN HOWARD J RUBENSTEIN SAID MRS HELMSLEY LOOKS FORWARD TO HER EVENTUAL RELEASE AND HER ABILITY TO CARE FOR MR HELMSLEY VICTIMS IN TWO MAJOR MASSLIABILITY CASES AREN'T GETTING SETTLEMENT MONEY QUICKLY ENOUGH AND THE FEDERAL JUDGE OVERSEEING THE TWO CASES ORDERED THAT STEPS BE TAKEN TO SPEED THE PROCESS IN ONE CASE INVOLVING VIETNAM VETERANS INJURED BY AGENT ORANGE US DISTRICT JUDGE JACK B WEINSTEIN DIRECTED A COURTAPPOINTED SPECIAL MASTER TO SPEED UP PAYMENTS FROM THE 170 MILLION SETTLEMENT FUND SET UP IN 1984 THE SPECIAL MASTER SAID THAT 120 MILLION HAS BEEN PAID OUT ALREADY AND THAT AN ADDITIONAL 33 MILLION WILL BE PAID IN THE NEXT FEW MONTHS AS A RESULT OF THE JUDGE'S ORDER VETERAN GROUPS HAVE CRITICIZED THE SETTLEMENT AS NOT PROVIDING ENOUGH MONEY AND NOT GETTING IT TO VETERANS QUICKLY ENOUGH IN A SEPARATE ORDER CONCERNING THE INDEPENDENT TRUST FORMED BY MANVILLE CORP TO PAY ASBESTOS VICTIMS JUDGE WEINSTEIN WARNED LAWYERS TO STOP WRANGLING OVER THE WAY THE 500 MILLION FUND WILL PAY CLAIMANTS JUDGE WEINSTEIN IN FEDERAL COURT IN BROOKLYN SAID HE MIGHT CONSIDER ORDERING INTERIM PAYMENTS IF NEGOTIATIONS CONTINUE FOR TOO LONG THE CASE WAS SENT BACK TO JUDGE WEINSTEIN FOR RENEGOTIATION AFTER A FEDERAL APPEALS COURT FOUND THAT A PREVIOUS SETTLEMENT WAS APPROVED WITHOUT PROPERLY TAKING INTO ACCOUNT ITS IMPACT ON OTHER FORMER ASBESTOS MAKERS JONATHAN M MOSES IN NEW YORK CONTRIBUTED TO THIS COLUMN 9306110139 930611 ABREAST OF THE MARKET INDUSTRIALS FALL ON 3M'S 86 DROP TRANSPORT SECTOR SLIPS ON TAX TALK BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AN 86 PLUNGE IN MINNESOTA MINING & MANUFACTURING SENT THE DOW JONES INDUSTRIAL AVERAGE SKIDDING AND TRANSPORTATION STOCKS SLUMPED BUT ELSEWHERE PRICES WERE JUST MODERATELY LOWER THE INDUSTRIAL AVERAGE SHED 2021 OR 058 TO 349172 ITS FIRST CLOSE BELOW 3500 SINCE MAY 21 MINNESOTA MINING WHICH PLUMMETED 10 TO 105 3/4 AFTER A DISAPPOINTING EARNINGS PROJECTION SLICED 22 POINTS OFF THE DOW MEANWHILE THE DOW JONES TRANSPORTATION AVERAGE DROPPED 2017 OR 130 TO 152660 AS TRUCKING AND AIRLINE STOCKS WERE HIT HARD BY FEARS OF HIGHER FUEL PRICES TRADERS SAID THEY CITED NEWS THAT SENATE DEMOCRATIC LEADERS ARE PURSUING AN INCREASE IN TRANSPORTATION FUEL LEVIES AS AN ALTERNATIVE TO PRESIDENT CLINTON'S BROAD ENERGY TAX BUT ELSEWHERE IT WAS ANOTHER MILD SESSION WITH CONTINUED CAUTION AHEAD OF THE IMPORTANT INFLATION NUMBERS DUE TODAY AND TUESDAY TRIPLEM AND THE TRANSPORTS THAT WAS THE WHOLE STORY SAID DALE TILLS VICE PRESIDENT OF TRADING AT CHARLES SCHWAB & CO ON THE BIG BOARD DECLINING STOCKS LED ADVANCERS 1044 TO 796 AND VOLUME TOTALED 230590000 SHARES COMPARED WITH 242390000 SHARES WEDNESDAY THE STANDARD & POOR'S 500 STOCK INDEX EASED 040 OR 009 TO 44538 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLID 024 OR 010 TO 24553 AND THE DOW JONES EQUITY MARKET INDEX FELL 043 OR 010 TO 42181 THERE WAS A LACK OF CONVICTION IN ADVANCE OF TODAY'S PRODUCER PRICE READING NOTED ERIC T MILLER MARKET STRATEGIST AT DONALDSON LUFKIN & JENRETTE MOST PEOPLE ASSUME THE NUMBER ISN'T GOING TO BE A BAD ONE AND THE FED WON'T ACT ON IT BUT THEY STILL WANT TO SEE THE PROOF HE SAID ANALYSTS EXPECT THE LABOR DEPARTMENT TO REPORT LITTLE CHANGE IN ITS PRODUCER PRICE INDEX FOR LAST MONTH EXCLUDING FOOD AND ENERGY PRICES THEY FORECAST A 02 RISE THE PRIOR MONTH PPI SURGED 06 ON TUESDAY THE DEPARTMENT WILL REPORT ON PRICES AT THE CONSUMER LEVEL SHARES OF 3M THE ST PAUL MINN MAKER OF RECORDING TAPE OFFICE SUPPLIES AND SPECIALTY CHEMICALS FELL INTO RETREAT AFTER THE COMPANY SAID ITS SECONDQUARTER EARNINGS WOULD FALL SHORT OF EXPECTATIONS IT BLAMED A SLOWDOWN IN THE GROWTH OF THE US ECONOMY OTHER ECONOMICALLY SENSITIVE STOCKS WERE MIXED GOODYEAR TIRE LOST 7/8 TO 38 3/4 INTERNATIONAL PAPER DROPPED 1 1/4 TO 64 AND BETHLEHEM STEEL EASED 3/4 TO 18 3/8 BUT CATERPILLAR JUMPED 1 TO 75 1/8 ALLIEDSIGNAL ROSE 1 TO 67 1/8 AND MAYTAG ADDED 1/4 TO 15 3/8 IN THE TRANSPORTATION GROUP PRICES WERE ALMOST UNIVERSALLY LOWER UAL THE PARENT OF UNITED AIRLINES LOST 1 1/8 TO 129 3/4 SOUTHWEST AIRLINES DROPPED 7/8 TO 42 3/8 AND AMR THE PARENT OF AMERICAN AIRLINES FELL 1 TO 67 XTRA A LESSOR OF TRUCKING EQUIPMENT SHED 1 3/8 TO 37 WHILE NASDAQLISTED TRUCKER ROADWAY SERVICES DECLINED 1 3/4 TO 52 1/4 HELENE CURTIS PLUNGED 5 1/2 TO 28 AFTER THE CHICAGO HAIR AND SKINCARE PRODUCTS CONCERN ESTIMATED ITS EARNINGS FELL TO SIX CENTS TO 10 CENTS A SHARE IN THE FIRST QUARTER ENDED LAST MONTH A YEAR AGO IT EARNED 26 CENTS ANALYSTS SURVEYED BY ZACKS INVESTMENT RESEARCH HAD PREDICTED A PROFIT OF 31 CENTS IN THE LATEST PERIOD SHARES OF SEVERAL FOOD COMPANIES DECLINED AFTER RATINGS DOWNGRADES BY PAINEWEBBER GENERAL MILLS LOST 1 1/8 TO 63 HERSHEY FOODS DROPPED 3/4 TO 49 1/8 AND SARA LEE EASED 1/4 TO 24 3/4 ALL ARE NOW RATED NEUTRAL THEY HAD CARRIED ATTRACTIVE OR BUY OPINIONS ANDREA ELECTRONICS PLUMMETED 9 5/8 TO 31 7/8 AFTER THE COMPANY CONFIRMED REPORTS THAT THE SECURITIES AND EXCHANGE COMMISSION IS INVESTIGATING THE RECENT FRENZIED TRADING IN ITS SHARES THE STOCK HAS MOVED FROM A LOW OF 19 1/2 TO AS HIGH AS 53 3/4 THIS MONTH IN SPECULATIVE TRADING TIED TO THE LONG ISLAND CITY NY COMPANY'S EFFORTS TO MARKET NOISE CONTROL PRODUCTS THE STOCK WAS HALTED ON THE AMERICAN STOCK EXCHANGE WEDNESDAY AHEAD OF YESTERDAY'S DISCLOSURE PEPSICO GAINED 3/4 TO 35 5/8 OPPENHEIMER & CO UPGRADED THE STOCK TO BUY FROM MARKET PERFORMER MOST SEMICONDUCTOR STOCKS EASED AFTER THE SEMICONDUCTOR INDUSTRY ASSOCIATION REPORTED THAT ITS SOCALLED BOOKTOBILL RATIO SLIPPED TO 112 LAST MONTH ANALYSTS HAD PREDICTED A READING OF 114 ADVANCED MICRO DEVICES LOST 3/4 TO 22 1/4 TEXAS INSTRUMENTS FELL 1 1/2 TO 66 1/4 AND ON NASDAQ INTEL DECLINED 1 1/4 TO 54 5/8 MOTOROLA THOUGH CLIMBED 1 1/8 TO 83 1/8 9306110138 930611 NATIONAL PIZZA CO PURCHASE PITTSBURG KAN NATIONAL PIZZA CO SAID IT COMPLETED THE ACQUISITION OF NRH CORP FOR ABOUT 205 MILLION NRH IS THE OPERATOR AND FRANCHISER OF TONY ROMA'S A PLACE FOR RIBS RESTAURANTS NATIONAL PIZZA IS A FRANCHISEE OF PIZZA HUT OUTLETS 9306110137 930611 INTERNATIONAL WORLD ECONOMY US IS HEADED FOR LONGER TRADE TALKS AS JAPAN RESISTS AMERICAN SOLUTIONS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHEN FRUSTRATED AMERICAN TRADE NEGOTIATORS SIT DOWN TODAY WITH THEIR JAPANESE COUNTERPARTS THEY MAY BE IN FOR A SURPRISE THE TOKYO TEAM WILL READILY AGREE ABOUT SOME OF THE PROBLEMS THAT NEED TO BE SOLVED BUT NOT SO SURPRISINGLY THE JAPANESE AREN'T READY FOR THE AMERICAN SOLUTIONS WHICH THEY CONSIDER INTRUSIVE AND UNWISE INSTEAD THEY'VE GOT THEIR OWN FRUSTRATIONS TO VENT AND PERHAPS MORE THAN EVER BEFORE THEY ARE READY TO RESIST SO ONCE AGAIN THE OUTLOOK IS MORE FOR PROLONGED ARGUMENT THAN QUICK RESOLUTION OVER THE NEXT ONE OR TWO YEARS I DON'T EXPECT ANY REALLY SERIOUS RESULTS SAYS SEIZABURO SATO RESEARCH DIRECTOR OF THE INTERNATIONAL INSTITUTE FOR GLOBAL PEACE A WELLCONNECTED AND INFLUENTIAL THINK TANK THINGS LOOK VERY OMINOUS NOW AGREES YUKIO OKAMOTO A FORMER OFFICIAL WHO NOW HEADS HIS OWN CONSULTING FIRM THE REASONS EXTEND BEYOND SIMPLY PROTECTING HOME MARKETS AND MANUFACTURERS FOR THESE ARE COMPLEX AND CONTRADICTORY DAYS IN JAPAN FOR ONE THING THERE'S AN EFFORT UNDER WAY TO REFORM A WEAK AND DISCREDITED POLITICAL SYSTEM BUT THE OUTCOME IS UNCERTAIN THIS RAISES DOUBTS ABOUT HOW FIRMLY THE GOVERNMENT CAN MAKE ITS OWN MINISTRIES ENFORCE ANY NEW AGREEMENT ITS NEGOTIATORS MAY SIGN THEY ARE MORE LIKELY TO OBEY THEIR OWN CONSTITUENCIES THAN A PRIME MINISTER IF THAT OFFICE REMAINS WEAK AT THE SAME TIME MANY JAPANESE ARE GETTING TIRED OF GIVING IN TO PRESSURE FROM THE AMERICANS OR ANYONE ELSE AFTER 40 YEARS OF PROSPERITY AND SOCIAL CALM THERE'S A NEW ASSERTIVENESS BREWING EVEN THOUGH MANY PEOPLE CONCEDE THE US RELATIONSHIP REMAINS CENTRAL TO JAPAN'S WELL BEING MR OKAMOTO IS ONE WHO BELIEVES NATIONALISM IS ON THE RISE HE OFTEN LECTURES TO YOUNG RECRUITS AT GOVERNMENT MINISTRIES ABOUT JAPAN'S NEED TO OPEN ITS SOCIETY AND BECOME A BETTER GLOBAL CITIZEN FREQUENTLY THE REACTION IS SUSPICION AND RESENTMENT WHY DO WE HAVE TO DEFEND OUR CULTURE THEY ASK AGAINST AMERICANS WHO ARE SO INSENSITIVE AND SELFRIGHTEOUS AND WHO CAN'T MANAGE THEIR OWN AFFAIRS PARTICULARLY WELL OTHERS SAY SIMILAR OPINIONS ARE COMMON AMONG THE PUBLIC AT LARGE THIS POLITICAL UNDERTONE STRENGTHENS RESISTANCE TO US TRADE DEMANDS EVEN THOUGH MANY INFLUENTIAL JAPANESE INCLUDING SOME TRADE NEGOTIATORS AGREE THEIR COUNTRY'S 130 BILLION TRADE SURPLUS HARMS THE GLOBAL ECONOMY AND THEIR OWN THEY SAY THESE NUMBERS MUST COME DOWN ASKS YOSHIO NAKAMURA A SENIOR OFFICIAL AT KEIDANREN THE BUSINESS FEDERATION OUR SURPLUSES REPRESENT AN OUTFLOW OF RESOURCES OVERSEAS WHY NOT SPEND THEM IN JAPAN ON SUCH THINGS AS BETTER HOUSING AND HIGHWAYS YET EVEN THESE FOLKS WILL FIGHT THE CLINTON ADMINISTRATION'S PLAN TO PRY OPEN MARKETS AND CUT SURPLUSES WITH THE HELP OF NUMERICAL MEASURES THEY CALL IT MANAGED TRADE THAT COULD LEAD TO BLATANT PROTECTIONISM AS PURPORTED FREE TRADERS THEY OPPOSE IT ON PRINCIPLE THEY SAY THE STRONG YEN AN EXPECTED ECONOMIC RECOVERY PLUS SOME SERIOUS ATTACKS ON ADMITTED TRADE IMPEDIMENTS EVENTUALLY WILL CUT THE SURPLUSES WITHOUT RADICAL NEW POLICIES BUT THE TRUTH IS MORE COMPLEX FOR EXAMPLE SOME ECONOMIC SECTORS THE FINANCIAL AND LEGAL PROFESSIONS CERTAIN MANUFACTURING ARE SHAMELESSLY CLOSED AND DETERMINED TO STAY THAT WAY THEY HAVE ALLIES IN THE BUREAUCRACY WHO HELP THEM REMAIN WHAT ONE EUROPEAN DIPLOMAT CALLS ECONOMIC FORTRESSES TO THE DEGREE THEY CAN INFLUENCE THE TRADE TALKS IT WILL BE TO THWART THE US PLAN OTHER JAPANESE WILL RESIST FOR OPPOSITE REASONS THEY COMPLAIN THAT THE US DEMANDS FREER MARKETS THEN WANTS THE CENTRAL GOVERNMENT TO GUARANTEE FIXED SHARES FOR FOREIGNERS THESE TALKS SHOULD REDUCE SUCH INTERFERENCE MR SATO INSISTS NOT STRENGTHEN THE MINISTRY OF INTERNATIONAL TRADE AND INVESTMENT THAT'S WHY SOME IN MITI ARE HAPPY HE SAYS THERE ALSO ARE OTHER CROSSCURRENTS AT WORK BUT THEY NEARLY ALL FEED RESISTANCE TO US POLICY EVEN IF FOR SOMETIMES OPPOSITE REASONS WHILE THERE ISN'T ANY SINGLE JAPANESE VIEW THERE IS BROAD OPPOSITION TO THE KIND OF SETTLEMENT MR CLINTON SEEKS THUS WHAT SEEMS LIKELY ARE TALKS THAT ARE PROLONGED CONTENTIOUS AND PERHAPS UNSUCCESSFUL BUT IF THE JAPANESE ARE RIGHT ABOUT THE EFFECTS OF THEIR STRONGER YEN THEIR COMING RECOVERY AND SOME QUOTAFREE MARKET MEASURES THE TRADE GAP COULD CLOSE A BIT EVEN AS THE NEGOTIATORS ARGUE 9306110136 930611 SALOMON TO PAY 67 MILLION TO SETTLE SUIT BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SALOMON INC WILL PAY AS MUCH AS 67 MILLION TO DISPOSE OF A BIG BATCH OF LITIGATION ARISING OUT OF ITS 1991 TREASURYAUCTION BIDDING SCANDAL IN AN AGREEMENT IN PRINCIPLE WITH A FEDERAL COURT HERE SALOMON SAID IT WILL SETTLE A CLASSACTION SUIT FILED BY HOLDERS OF SALOMON STOCK AND BONDS FOLLOWING THE BIDDING SCANDAL SALOMON SAID IT WILL PAY A TOTAL OF 545 MILLION TO INVESTORS WHO FILED THE SUIT WHILE DENYING ANY VIOLATION OF LAW THE INVESTMENT BANK ALSO AGREED TO PAY AS MUCH AS 125 MILLION IN ATTORNEYS' FEES THE SETTLEMENT IS SUBJECT TO NEGOTIATION AND COURT APPROVAL WHICH IS EXPECTED BY OCTOBER SECURITIES LAWYERS SAY THE SETTLEMENT APPEARS TO BE A GOOD DEAL FOR SALOMON THAT'S BECAUSE THE 545 MILLION WILL COME OUT OF A 100 MILLION RESTITUTION FUND ALREADY ESTABLISHED BY SALOMON IN MAY 1992 AS PART OF A 290 MILLION SETTLEMENT OF FEDERAL CIVIL CHARGES BROUGHT BY THE SECURITIES AND EXCHANGE COMMISSION AT THE SAME TIME INVESTORS WHO OPT FOR THE SETTLEMENT WILL BE BARRED FROM BRINGING ANY ADDITIONAL SIMILAR CLAIMS AGAINST THE FIRM BUT ARTHUR ABBEY OF ABBEY & ELLIS THE NEW YORK LAW FIRM THAT REPRESENTED THE PLAINTIFFS CALLED IT A GOOD SETTLEMENT FOR HIS CLIENTS HE SAID THAT INVESTORS WHO WILL RECEIVE THE 545 MILLION BOUGHT SALOMON STOCK AND BONDS BETWEEN MARCH AND AUGUST 1991 WHILE THE SEC IN ITS CIVIL COMPLAINT SUED ON BEHALF OF BUYERS DURING JUST A FOURDAY PERIOD IN AUGUST 1991 WE HAVE AN EXPANDED CLASS OF INVESTORS MR ABBEY SAID AND 545 MILLION HE SAID IS A LOT OF MONEY SALOMON'S STOCK HAS REBOUNDED AFTER DROPPING TO A LOW OF 2175 IN SEPTEMBER 1991 YESTERDAY SALOMON'S TRADED AT 3625 A SHARE UP 125 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING MR ABBEY SAID THOSE PEOPLE WHO HAVE HELD THE STOCK ARE NOT OUT OF POCKET VERY MUCH THE TREASURYAUCTION SCANDAL DEVELOPED IN AUGUST 1991 AFTER SALOMON ADMITTED TO FALSIFYING CUSTOMER ORDERS AND BIDDING BEYOND GOVERNMENT LIMITS IN A SERIES OF SALES OF GOVERNMENT NOTES AND BONDS THE SCANDAL RESULTED IN THE FORCED DEPARTURES OF SALOMON'S SENIOR MANAGEMENT INCLUDING CHAIRMAN JOHN GUTFREUND AND PRESIDENT THOMAS STRAUSS THE SHAREHOLDER SUIT WHICH CONSOLIDATED MORE THAN 20 CLASSACTION CLAIMS BEFORE FEDERAL JUDGE ROBERT PATTERSON ALLEGED THAT SALOMON'S STOCK AND BOND PRICES WERE ARTIFICIALLY INFLATED BECAUSE INVESTORS WEREN'T TOLD OF THE FIRM'S IMPROPRIETIES IN THE TREASURYBOND MARKET THE SUITS SOUGHT UNSPECIFIED COMPENSATORY AND PUNITIVE DAMAGES PLUS INTEREST AMONG OTHER THINGS NEXT ON SALOMON'S DOCKET MORE THAN 10 CASES BROUGHT IN FEDERAL COURT HERE BY BUYERS OF TREASURY SECURITIES THESE SUITS WHICH ARE FAR MORE COMPLEX THAN THE SHAREHOLDER LITIGATION ALLEGE THAT TREASURYMARKET BUYERS WERE HARMED BY SALOMON'S ALLEGED MANIPULATION OF SEVERAL MULTIBILLION DOLLAR AUCTIONS THE TREASURYPARTICIPANT SUITS WHICH SEEK UNSPECIFIED DAMAGES HAVEN'T YET BEEN CERTIFIED AS A CLASS ACTION THE SUITS CURRENTLY ARE IN THE DISCOVERY OR FACTFINDING PHASE LAWYERS SAID SALOMON CHIEF EXECUTIVE OFFICER ROBERT DENHAM SAID IN A STATEMENT HE WAS PLEASED THAT SALOMON WAS NEARING AN END TO THE FIRM'S TREASURYRELATED LITIGATION WITH THE SETTLEMENT OF THE SHAREHOLDER SUITS HE SAID WE CAN CONCENTRATE ON FIGHTING THE LITIGATION BROUGHT ON BEHALF OF TREASURY MARKET PARTICIPANTS 9306110135 930611 WHO'S NEWS VALLEY SYSTEMS PRESIDENT RESIGNS CANAL FULTON OHIO RICHARD M CHAPIS RESIGNED AS PRESIDENT OF VALLEY SYSTEMS INC LESS THAN TWO MONTHS AFTER THE CHAIRMAN AND CHIEF EXECUTIVE RESIGNED THE INDUSTRIAL CLEANINGSERVICES CONCERN DIDN'T NAME A SUCCESSOR BUT SAID THE DUTIES OF MR CHAPIS 50 YEARS OLD WILL BE ASSUMED TEMPORARILY BY DENNIS SHEETS THE CHIEF FINANCIAL OFFICER THE COMPANY HASN'T NAMED A NEW CHIEF EXECUTIVE EITHER MR CHAPIS WAS NAMED PRESIDENT IN SEPTEMBER VALLEY SYSTEMS LAST YEAR SUFFERED A STEEP DECLINE IN ITS STOCK PRICE AND THE RESIGNATION OF ITS CHIEF FINANCIAL OFFICER AFTER AN AUDIT FOUND ACCOUNTING PROBLEMS SHAREHOLDER SUITS STEMMING FROM THE FINDINGS WERE SETTLED IN APRIL MR CHAPIS SAID IN A STATEMENT THAT HIS DEPARTURE WILL GIVE THE COMPANY FREEDOM TO MAKE THE CHANGES NECESSARY TO GROW VALLEY SYSTEMS IS 70 OWNED BY ATLANTA'S ROLLINS INVESTMENT FUND 9306110134 930611 INTERNATIONAL US TAKES STEPS TO WIDEN ROLE WITHIN NATO BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL ATHENS GREECE IN AN EFFORT TO REASSERT ITS LEADERSHIP OF THE WESTERN ALLIANCE THE CLINTON ADMINISTRATION TOOK SEVERAL LARGELY SYMBOLIC STEPS THAT WILL BROADEN ITS INVOLVEMENT IN THE BALKANS AT A MEETING HERE YESTERDAY SECRETARY OF STATE WARREN CHRISTOPHER TOLD EUROPEAN ALLIES THAT THE US WOULD PUT 300 US TROOPS INTO MACEDONIA AS PEACEKEEPERS WHO WOULD BE A DETERRENT AGAINST FUTURE SERBIAN AGGRESSION A US OFFICIAL SAID THE US TROOPS COULD ARRIVE WITHIN SEVERAL WEEKS THE US ALSO VOLUNTEERED TO PROVIDE AIR TRANSPORTATION IF NEEDED FOR OTHER NATION'S TROOPS THAT WOULD SERVE AS PEACEKEEPERS IN BOSNIA AND MR CHRISTOPHER REAFFIRMED THAT A USLED EFFORT WOULD PROVIDE PROTECTION FROM THE AIR FOR PEACEKEEPERS ANYWHERE IN BOSNIA IN A FURTHER EFFORT TO UNDERSCORE WASHINGTON'S PROMINENT ROLE AND CONTINUING ENGAGEMENT WITH EUROPE MR CHRISTOPHER ALSO PROPOSED A SUMMIT MEETING OF THE NORTH ATLANTIC TREATY ORGANIZATION BEFORE THE END OF THIS YEAR TO DISCUSS NATO'S TASK IN THE POSTCOLD WAR WORLD THE PROPOSAL WAS ACCEPTED AT THE MEETING OF NATO FOREIGN MINISTERS HERE THIS IS A SIGNIFICANT INDICATION OF PRESIDENT CLINTON'S DETERMINATION TO PROVIDE LEADERSHIP FOR NATO AND HIS COMMITMENT TO EUROPE HIS COMMITMENT TO NATO MR CHRISTOPHER SAID AT A NEWS CONFERENCE MR CHRISTOPHER ALSO SAID THAT MR CLINTON WILL PROBABLY HOLD ANOTHER SUMMIT MEETING WITH RUSSIAN PRESIDENT BORIS YELTSIN SOMETIME IN THE NEXT SEVERAL MONTHS BUT IN WASHINGTON ADMINISTRATION OFFICIALS SAID THAT NO SPECIFIC DATES ARE BEING DISCUSSED FOR THE NEXT CLINTONYELTSIN MEETING WHICH IS EXPECTED TO BE HELD IN MOSCOW DESPITE THESE US EFFORTS THOUGH CONCERNS REMAIN THAT NATO LACKS THE STRONG GUIDANCE THAT THE US PROVIDED DURING THE COLD WAR IN REMARKS EARLIER YESTERDAY NATO SECRETARY GENERAL MANFRED WOERNER WARNED THAT IN ORDER FOR NATO TO DEFINE AND PERFORM ITS MISSION THERE MUST BE A CLEAR SENSE OF PURPOSE AND THERE MUST BE LEADERSHIP THIS IS THE MOST IMPORTANT LESSON OF THE PAST MONTHS MR WOERNER INSISTED THAT HE WASN'T POINTING ANY FINGER AT THE US DURING THE PAST FEW MONTHS HOWEVER SOME EUROPEAN AND DOMESTIC CRITICS HAVE CHARGED THAT PRESIDENT CLINTON HASN'T PROVIDED DECISIVE LEADERSHIP HE BACKED AWAY FROM THREATS OF MILITARY ACTION AGAINST BOSNIAN SERBS IF THEIR ATTACKS ON MUSLIMS DIDN'T CEASE SENT MR CHRISTOPHER TO EUROPE TO CONSULT RATHER THAN PRESENT A PLAN FOR ACTION TO THE ALLIES AND CONTINUES TO REFUSE TO PROVIDE PEACEKEEPING TROOPS IN BOSNIA UNTIL A SETTLEMENT IS REACHED MR CHRISTOPHER INSISTED THAT THE 300 TROOPS THAT WILL BE DISPATCHED TO MACEDONIA WHERE THERE CURRENTLY IS NO FIGHTING WILL BE A DETERRENT BUT HE WAS VAGUE ABOUT WHETHER THE US WOULD SEND IN MORE TROOPS OR EVACUATE THE PEACEKEEPERS IF THEY WERE ATTACKED BY SERBIAN FORCES IF THEY'RE THREATENED IN SOME WAY I WOULD SAY THE US IS LIKELY TO HAVE A SUBSTANTIAL PERIOD OF TIME OF NOTICE OF THAT AND THE UNITED STATES IS NOT LIKELY TO LEAVE ITS TROOPS UNDEFENDED THERE IN MACEDONIA THE CAUTIOUS MR CHRISTOPHER SAID MR CHRISTOPHER CONCLUDED THAT THE UNITED STATES WILL NOT BE FAULTED AROUND THE WORLD FOR THE COURAGE IT'S SHOWN BUT HE THEN CITED TWO EXAMPLES OF US ACTIONS THAT HAD BEEN INITIATED BY THE BUSH ADMINISTRATION WHETHER YOU'RE TALKING ABOUT SOMALIA OR TALKING ABOUT DESERT STORM THE UNITED STATES DOES ITS PART AND WE'RE DOING IT HERE IN THE FORMER YUGOSLAVIA HE SAID 9306110133 930611 DIVIDEND NEWS CROP GENETICS INTERNATIONAL CORP CROP GENETICS INTERNATIONAL CORP COLUMBIA MD SAID IT DECIDED TO WITHHOLD DIVIDENDS ON ITS PREFERRED STOCK TO USE THE CASH TO EXPLOIT PRODUCT OPPORTUNITIES IN ITS THREE DIVISIONS THE COMPANY WHICH DEVELOPS BIOLOGICAL PRODUCTS TO CONTROL INSECTS WEEDS AND OTHER AGRICULTURAL PESTS HAD A NET LOSS OF ALMOST 7 MILLION LAST YEAR IT IS THE FIRST TIME SINCE CROP GENETICS WAS FOUNDED IN 1981 THAT THE COMPANY DECIDED TO LET THE DIVIDENDS ACCRUE THE MOVE WILL SAVE MORE THAN 640000 IN THE FIRST QUARTER IT SAID 9306110132 930611 HOME BUYERS CHALLENGE SHODDY BUILDERS COMPLAINTS ARE ON THE RISE AMID HOUSING SLUMP BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL NEWHOME BUYERS ARE RISING UP AGAINST THEIR BUILDERS IN GROWING NUMBERS COMPLAINING THAT SHODDY PRACTICES AND TROUBLED BUILDERS WHO ABANDON PROJECTS HAVE BECOME TOO COMMON IN THE INDUSTRY IN TEXAS 300 HOMEOWNERS RECENTLY FORMED A GROUP CALLED SICK OF BAD BUILDERS AND WILL TODAY MEET WITH FEDERAL PROSECUTORS IN FORT WORTH TO AIR THEIR COMPLAINTS OF FRAUD AND POOR WORKMANSHIP IN NORTH CAROLINA MORE THAN 1200 HOMEOWNERS HAVE FORMED THE NORTH CAROLINA HOMEOWNERS ASSOCIATION URGING THE STATE TO CRACK DOWN ON LOCAL INSPECTORS WHO THEY SAY LET SLIPSHOD CONSTRUCTION SLIP BY IN FLORIDA HUNDREDS OF PEOPLE HAVE SUED BUILDERS ALLEGING CONSTRUCTION DEFECTS THAT CONTRIBUTED TO DAMAGE OF THEIR HOMES DURING HURRICANE ANDREW AND IN WASHINGTON DC THE UNITED HOMEOWNERS ASSOCIATION WANTS STATES TO SET UP A RELIEF MECHANISM THAT AMONG OTHER THINGS COULD INCLUDE AN INSURANCE POOL FUNDED BY BUILDERS TO COMPENSATE HOMEOWNERS WHO HAVE BEEN DEFRAUDED HOME BUYERS NOW HAVE LITTLE RECOURSE AGAINST BUILDERS OTHER THAN THE COURTS YOU HAVE MORE PROTECTION AGAINST YOUR TOASTER THAN YOUR HOUSE SAYS JORDAN CLARK THE ASSOCIATION'S PRESIDENT THE GROUP GETS 50 TO 70 CONSUMER COMPLAINTS A MONTH ABOUT CONSTRUCTION DEFECTS UP FROM 30 TO 40 MONTHLY A YEAR AGO COMPLAINTS ARE ON THE RISE AS BUILDERS STRAPPED BY THE PROLONGED HOUSING SLUMP FILE FOR BANKRUPTCY MIDWAY THROUGH PROJECTS LEAVING THE HOMEOWNER TO FACE UNPAID CREDITORS AND WITH FAR FEWER HOMES BEING BUILT THESE DAYS THAN IN THE 1980S COMPETITION ALSO IS SO FIERCE THAT SOME BUILDERS ARE CUTTING CORNERS SOME BUILDERS ARE DIVERTING BANK LOANS INTENDED FOR ONE HOME INTO OTHER HOMES OR TO PAY BILLS IN VIOLATION OF FEDERAL LAW SAYS ALAN FIELDS A BOULDER COLO CONSUMER ADVOCATE THE TEXAS HOMEOWNERS' GROUP ALSO WILL MAKE THIS CHARGE IN ITS MEETING TODAY WITH REPRESENTATIVES OF THE US ATTORNEY'S OFFICE IN FORT WORTH AND OTHER FEDERAL OFFICIALS THE NATIONAL ASSOCIATION OF HOME BUILDERS THE INDUSTRY TRADE GROUP LAST YEAR BEGAN ORGANIZING LOCAL BUILDERS GROUPS TO MONITOR QUALITY IN CINCINNATI HOMEOWNERS CAN CALL THE LOCAL BUILDERS' ASSOCIATION AND HAVE IT TRY TO WORK WITH A PROBLEM BUILDER TO GET THINGS RIGHT CERTAINLY WHEN TIMES ARE TOUGH AND BUILDERS ARE HAVING CHALLENGES IN TERMS OF GETTING FINANCING SOMETHING OF THAT WILL PLAY OUT IN THE MARKETPLACE SAYS KENT W COLTON EXECUTIVE VICE PRESIDENT OF THE HOME BUILDERS' GROUP BUT WE STRONGLY FEEL THAT THIS WOULD BE THE EXCEPTION RATHER THAN THE RULE A LARGE PERCENTAGE OF BUILDERS ARE CLEARLY INTERESTED IN STAYING IN BUSINESS FOR A LONG TIME IT'S NOT ONLY THE RIGHT THING ETHICALLY BUT IT'S ALSO GOOD BUSINESS EVEN HOME BUYERS WITH BACKGROUNDS IN REAL ESTATE HOWEVER CAN RUN INTO PROBLEMS KATHY FRAGNOLI A CORPORATE REALESTATE LAWYER IN ARLINGTON TEXAS AND HER HUSBAND INTERVIEWED 10 BUILDERS BEFORE SELECTING ONE WHO RECEIVED GLOWING REFERENCES FROM CUSTOMERS AND HIS BANK THEIR 175000 HOUSE WAS NEARLY COMPLETE SHE SAYS WHEN THE BUILDER ADLAI PENNINGTON PHONED TO SAY HE HAD FILED FOR BANKRUPTCY SHE WENT RIGHT TO THE PROPERTY TO FIND UNPAID SUBCONTRACTORS RIPPING OUT WINDOWS DOORS AND OTHER FIXTURES I CALLED THE POLICE AND STARTED CRYING MS FRAGNOLI SAYS THE SUBCONTRACTORS EVENTUALLY FILED NEARLY 80000 IN LIENS ON THE HOUSE LEAVING THE FRAGNOLIS TO SETTLE THE DEBT THE COUPLE HIRED ANOTHER BUILDER TO FINISH THE HOUSE AND DEMANDED THAT MR PENNINGTON'S BANK COMPENSATE THEM FOR HAVING PROVIDED A HEALTHY FINANCIAL REPORT THAT SHE SAYS TURNED OUT TO BE ERRONEOUS THE BANK ENDED UP SETTLING FOR AN UNDISCLOSED SUM WHICH MS FRAGNOLI SAYS COVERED MOST OF HER FAMILY'S COSTS BUT NOT THE MISERY MR PENNINGTON DIDN'T RETURN CALLS SEEKING COMMENT HOOKING UP WITH BUILDERS WHO HAVE WON LOCAL ACCLAIM WON'T NECESSARILY PREVENT SERIOUS PROBLEMS IN WILMINGTON NC RETIREES FRED AND PAMELA SULLIVAN THOUGHT THEY HAD DONE WELL THREE YEARS AGO IN SELECTING AS THEIR BUILDER THE PRESIDENT OF THE LOCAL BUILDERS GROUP AND THE CITY'S BUILDER OF THE YEAR THE BUILDER LAWRENCE W NICOLAYSEN BUILT HOMES SIDE BY SIDE FOR THE SULLIVANS AND AN ELDERLY RELATIVE AND HAD A FINAL 11000 COMING FROM BOTH JOBS BUT THE SULLIVANS FOUND THAT AMONG OTHER PROBLEMS A COUNTY INSPECTOR SAID SOME FRONT STEPS HADN'T BEEN INSTALLED PROPERLY AND HAD TO BE REPLACED THEY SAY THE BUILDER REFUSED TO DO MORE WORK UNTIL HE HAD GOTTEN HIS MONEY THE COUPLE BALKED AND THE BUILDER FILED LIENS ON BOTH PROPERTIES THE SULLIVANS SAY THEY LATER FOUND OTHER DEFECTS INCLUDING AN UNSTABLE CHIMNEY A DRAINLESS CRAWL SPACE THAT ACCUMULATED WATER AND GAPS IN THE FRAME AROUND GLASS PATIO DOORS THAT THE COUPLE HAD TO PLUG WITH TOILET PAPER THEY SAY THE LOCAL BUILDING INSPECTORS DIDN'T UNCOVER THESE PROBLEMS THE COUPLE SUED THE BUILDER OVER THE ALLEGED DEFECTS IN STATE COURT IN WILMINGTON A DECISION IS PENDING MR NICOLAYSEN AND HIS LAWYER WOULDN'T COMMENT THE EPISODE HAS COST THE SULLIVANS 20000 IN LEGAL FEES SAYS MRS SULLIVAN IT HAS COMPLETELY RUINED OUR LIVES 9306110131 930611 CANADA'S CONSERVATIVE PARTY TO ELECT LEADER IT HOPES WILL REVIVE ITS FORTUNES BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S RULING PROGRESSIVE CONSERVATIVE PARTY WILL ELECT A NEW LEADER SUNDAY WHO IT HOPES CAN REVIVE THE PARTY'S POPULARITY THE WINNER WILL BECOME PRIME MINISTER SUCCEEDING BRIAN MULRONEY SUCH A SUCCESSION IS POSSIBLE WITHOUT A NATIONAL ELECTION PROVIDED THE NEW LEADER HAS A MAJORITY IN THE HOUSE OF COMMONS THE CHIEF CONTENDERS ARE DEFENSE MINISTER KIM CAMPBELL A FORTHRIGHT 46YEAROLD LAWYER FROM BRITISH COLUMBIA AND ENVIRONMENT MINISTER JEAN CHAREST AN AFFABLE 34YEAROLD ATTORNEY FROM QUEBEC IF MS CAMPBELL WINS SHE WOULD BE CANADA'S FIRST FEMALE PRIME MINISTER IF MR CHAREST WINS HE WOULD BE ITS YOUNGEST THE TWO STRONGLY SUPPORT THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH WOULD GRADUALLY DISMANTLE TRADE BARRIERS BETWEEN THE US CANADA AND MEXICO MR MULRONEY WHO HAS LED THE CONSERVATIVE GOVERNMENT SINCE 1984 HASN'T ENDORSED ANYONE HE ANNOUNCED IN FEBRUARY HIS INTENTION TO RESIGN RECOGNIZING THAT BECAUSE OF HIS UNPOPULARITY HE HAD LITTLE CHANCE OF LEADING THE CONSERVATIVES TO ANOTHER VICTORY THE NEW LEADER WHO WILL BE SWORN IN AS PRIME MINISTER LATER THIS MONTH WILL HAVE LITTLE TIME TO MAKE AN IMPRINT ON THE GOVERNMENT A NATIONAL ELECTION MUST BE CALLED BEFORE NOVEMBER MS CAMPBELL AND MR CHAREST ARE MULRONEY LOYALISTS THEY HAVEN'T CRITICIZED THE PRIME MINISTER OR HIS POLICIES DESPITE HIS UNPOPULARITY THE OPPOSITION PARTIES HAVE CALLED THEM MULRONEY CLONES MS CAMPBELL AND MR CHAREST HAVE SIMILAR ECONOMIC POLICY VIEWS MS CAMPBELL AIMS TO ELIMINATE THE GOVERNMENT'S OVER C326 BILLION US2545 BILLION DEFICIT IN FIVE YEARS WHILE MR CHAREST WOULD TRY TO DO IT IN FOUR MS CAMPBELL STRONGLY SUPPORTS THE BANK OF CANADA'S ANTIINFLATION GOALS AND FAVORS REWRITING THE CENTRAL BANK'S MANDATE TO FOCUS IT ON PRICE STABILITY MR CHAREST APPEARS TO BE LESS ENAMORED OF THE BANK'S AIM TO ACHIEVE ZERO INFLATION THE NEW PRIME MINISTER WILL HAVE LIMITED SCOPE FOR SPENDING INITIATIVES BECAUSE OF THE FEDERAL GOVERNMENT'S MOUNTING DEBT SERVICING THE C491 BILLION DEBT ACCOUNTS FOR 25 CENTS OF EVERY DOLLAR THE GOVERNMENT SPENDS THE LATEST POLLS OF THE APPROXIMATELY 3650 DELEGATES TO THE LEADERSHIP CONVENTION SHOW MS CAMPBELL WITH A MODEST LEAD OVER MR CHAREST BUT MR CHAREST WHO STARTED THE RACE AS A LONG SHOT HAS BEEN GAINING GROUND HELPED BY HIS FLUENCY IN ENGLISH AND FRENCH AND HIS NIMBLE PERFORMANCES IN TELEVISED DEBATES SEVERAL MAJOR NEWSPAPERS AND PROMINENT CONSERVATIVES INCLUDING FORMER PRIME MINISTER JOE CLARK ENDORSED MR CHAREST THIS WEEK THE GLOBE AND MAIL NEWSPAPER DESCRIBING MR CHAREST AS A POLITICIAN WITH A QUICK MIND A LIKABLE DEMEANOR AND A PLAIN WAY OF SPEAKING SAID HE HAS THE MAKINGS OF A PRIME MINISTER MR CHAREST'S CAMPAIGN ALSO HAS BEEN HELPED BY RECENT POLLS THAT INDICATED THE CONSERVATIVES WOULD DO BETTER IN A NATIONAL ELECTION UNDER HIM THAN UNDER MS CAMPBELL PARTICULARLY IN MR CHAREST'S HOME PROVINCE OF QUEBEC THE CONSERVATIVES UNDER MR MULRONEY HAVE TRAILED IN PUBLICOPINION POLLS MS CAMPBELL'S CAMPAIGN GOT OFF TO A STRONG START IN MARCH PROMPTING SEVERAL PROMINENT CONSERVATIVES TO ABANDON PLANS TO RUN BUT IN RECENT WEEKS SHE HAS COMMITTED SEVERAL GAFFES INCLUDING CALLING OPPONENTS OF THE GOVERNMENT'S DEFICITCUTTING MEASURES ENEMIES OF CANADA MS CAMPBELL'S CAMPAIGN ALSO HAS BEEN HURT BY REPEATED NEWSPAPER REFERENCES TO HER TWO DIVORCES IN ANNOUNCING HIS SUPPORT FOR MR CHAREST THIS WEEK TERRY CLIFFORD A CONSERVATIVE MEMBER OF PARLIAMENT SAID HE THOUGHT MANY CANADIANS COULD IDENTIFY WITH MR CHAREST BECAUSE HE HAS A WIFE AND THREE CHILDREN MS CAMPBELL IS SINGLE AND HAS NO CHILDREN THREE OTHER CANDIDATES ALSO ARE RUNNING JIM EDWARDS PATRICK BOYER AND GARTH TURNER ALL MEMBERS OF PARLIAMENT THEY ARE GIVEN LITTLE CHANCE OF WINNING BUT THE SUPPORT OF THEIR DELEGATES COULD BE DECISIVE IN A CLOSE CONTEST BETWEEN MS CAMPBELL AND MR CHAREST 9306110130 930611 SCIENTISTS STUDY MYSTERIOUS KIND OF CHOLESTEROL NEW RESEARCH MAY SHOW HOW LIPOPROTEIN A IS ABLE TO CLOG ARTERIES BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL SCIENTISTS MAY HAVE UNCOVERED THE SECRET OF HOW A MYSTERIOUS FORM OF CHOLESTEROL IN THE BLOOD CLOGS ARTERIES WITH HEART DISEASE THE CHOLESTEROL IS KNOWN AS LIPOPROTEIN A OR LPA WHICH IS USUALLY CALLED LP LITTLE A POPULATION STUDIES INDICATE THAT ABNORMAL LEVELS OF LPA IN THE BLOOD MAY BE THE UNDERLYING CAUSE OF A QUARTER OF THE HEART ATTACKS THAT HIT YOUNG AND MIDDLEAGED MEN THE SOCALLED PREMATURE HEART ATTACKS NEW LABORATORY EXPERIMENTS SHOW THAT LPA CHOLESTEROL CAN PERMIT THE CELLS THAT MAKE UP THE WALLS OF ARTERIES TO PROLIFERATE UNCHECKED ACCORDING TO A REPORT BY SCIENTISTS AT STANFORD UNIVERSITY IN PALO ALTO CALIF AND THE UNIVERSITY OF CAMBRIDGE IN ENGLAND PUBLISHED IN THIS WEEK'S ISSUE OF THE JOURNAL SCIENCE THE LABORATORY FINDINGS LED THE RESEARCHERS TO THEORIZE THAT THE UNBRIDLED PROLIFERATION OF GROWTHS ON ARTERY WALLS PERMITTED BY LPA LEADS TO THE CLOGGING OF THE HEART'S CORONARY ARTERIES THE PROCESS THAT LAYS THE GROUNDWORK FOR A HEART ATTACK THE FINDING UNDERSCORES NEW URGINGS BY HEART DISEASE RESEARCHERS THAT CHOLESTEROL TESTS SHOULD DISTINGUISH THE TYPES OF CHOLESTEROL IN A PERSON'S BLOODSTREAM TO DETERMINE THE PERSON'S RISK OF HEART DISEASE POPULATION STUDIES SHOW THAT HIGH LEVELS OF TOTAL CHOLESTEROL IN THE BLOODSTREAM THE CURRENT GOAL OF CHOLESTEROL TESTS CAN ACCOUNT FOR LESS THAN HALF THE HEART ATTACKS THIS SUGGESTS THAT A NORMAL OR LOW TOTAL CHOLESTEROL LEVEL COULD SOMETIMES INCLUDE A PECULIAR OR DEFECTIVE FORM OF CHOLESTEROL THAT CARRIES HIGH RISK THE FINDINGS ARE THRUSTING LPA CHOLESTEROL INTO THE LIMELIGHT ALONGSIDE LDL THE CHOLESTEROL THAT CLEARLY CAUSES MUCH HEART DISEASE AND HDL THE CHOLESTEROL THOUGHT TO PROTECT AGAINST HEART DISEASE AS LONG AS 30 YEARS AGO STUDIES OF SCANDINAVIAN MEN FOUND THOSE WITH HIGH LEVELS OF LPA WERE MORE SUSCEPTIBLE TO HEART ATTACKS THAN THOSE WITH LOW LPA LEVELS BUT THIS FINDING WAS IGNORED FOR TWO DECADES BECAUSE OF PROBLEMS WITH TESTING FOR LPA WHEN AMERICAN SCIENTISTS REVIVED INTEREST IN LPA EIGHT YEARS AGO THEY MADE A SURPRISING DISCOVERY LIKE ALL FORMS OF CHOLESTEROL LPA IS A GLOB OF CHOLESTEROL WRAPPED IN PROTEINS SCIENTISTS AT GENENTECH INC THE BIG BIOTECHNOLOGY FIRM IN SAN FRANCISCO DISCOVERED THE PROTEIN WRAPPED AROUND LPA IS A STRANGE VARIATION OF A NORMAL PROTEIN IN THE BODY THAT PLAYS A KEY ROLE IN DISSOLVING BLOOD CLOTS THE SIGNIFICANCE OF THIS DISCOVERY HAS BEEN A PUZZLE BUT THE NEW EXPERIMENTS MAY HAVE FOUND THE ANSWER THE EXPERIMENTS CENTERED AROUND THE FACT THAT THE CHEMICAL REACTIONS TRIGGERED TO DISSOLVE A BLOOD CLOT BEGIN WITH THE PROTEIN THAT IS SIMILAR TO THE ONE FOUND ON LPA ONE STEP IN THE CLOTDISSOLVING REACTION ACTIVATES A LATENT SUBSTANCE CALLED TGFBETA THE ACTIVE TGFBETA SLOWS DOWN THE PROLIFERATION OF THE CELLS THAT MAKE UP THE WALLS OF THE ARTERIES A SERIES OF TESTTUBE EXPERIMENTS SHOWED THAT LPA APPARENTLY BECAUSE OF ITS SIMILARITY TO THE CLOTDISSOLVING PROTEIN PREVENTS THE TGFBETA FROM BEING ACTIVATED WITHOUT THE BRAKES OF TGFBETA THE ARTERY WALL CELLS CAN MULTIPLY UNCHECKED AND OVER THE YEARS BUILD UP INTO AN ARTERYWALL DEPOSIT THAT IS THE HALLMARK OF HEART DISEASE THEY SUGGESTED THE STANFORD PART OF THE TEAM WAS HEADED BY RICHARD LAWN PROFESSOR OF CARDIOVASCULAR MEDICINE WHO HEADED THE GENENTECH GROUP THAT DISCOVERED THE PROTEIN SIMILARITIES IN 1987 9306110129 930611 INTERNATIONAL RUSSIA'S RUTSKOI IS READY TO GO TO THE MAT BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW AFTER BEING BUMPED TO THE POLITICAL SIDELINES BY PRESIDENT BORIS YELTSIN RUSSIAN VICE PRESIDENT ALEXANDER RUTSKOI SAYS HE IS READY TO FIGHT BACK DURING A 90MINUTE INTERVIEW IN HIS SPACIOUS OFFICE INSIDE THE KREMLIN MR RUTSKOI MAKES IT CLEAR THAT HE IS PREPARED TO CHALLENGE MR YELTSIN IN RUSSIA'S NEXT PRESIDENTIAL ELECTION WHICH COULD BE HELD AS SOON AS THIS FALL I HAVE NO INTENTION OF LEAVING THE BATTLEFIELD SAYS THE FEISTY AFGHANISTAN WAR HERO MR RUTSKOI GAMBLED HIS POLITICAL FUTURE IN MARCH PUBLICLY SPLITTING WITH MR YELTSIN AS THE PRESIDENT LOCKED HORNS WITH OPPONENTS IN PARLIAMENT SINCE THEN MR YELTSIN HAS TRIED TO HUMILIATE HIS VICE PRESIDENT CHIPPING AWAY AT HIS RESPONSIBILITIES TAKING AWAY MOST OF HIS SECURITY STAFF AND ORDERING THAT HIS MERCEDES BE REPLACED BY A RUSSIANMADE VOLGA MR RUTSKOI FACES AN UPHILL STRUGGLE SINCE MARCH WHEN HE APPEARED TO BE MR YELTSIN'S MOST POTENT CHALLENGER MR RUTSKOI HAS SEEN HIS PUBLIC RATING SLIP BADLY HIS UNDOING AT THE HANDS OF THE PRESIDENT HAS PROMPTED LITTLE PROTEST OR SYMPATHY INDEED MR RUTSKOI FACES THE DANGER OF BECOMING MARGINALIZED SO HE IS WORKING ON HIS IMAGE I'M WELL AWARE OF WHAT THE AMERICAN PRESS WRITES ABOUT ME SAYS MR RUTSKOI IN AN OFFICE ADORNED WITH MODEL PLANES AND A GLARING PORTRAIT OF PETER THE GREAT YOU PORTRAY ME AS AN ANTIREFORM DESPOT AN OPPONENT OF THE US A MILITARY GUY WITH NO BRAINS MR RUTSKOI CONTENDS THAT SUCH CHARACTERIZATIONS ARE LIES PLANTED IN THE MEDIA BY HIS FOES IN THE YELTSIN CAMP NAMELY FOREIGN MINISTER ANDREI KOZYREV AND ANOTHER YELTSIN CRONY MIKHAIL POLTORANIN I'M NO ADVERSARY OF THE US SAYS MR RUTSKOI WAVING A MARLBORO CIGARETTE IN THE AIR ON THE CONTRARY I STAND FOR ACTIVE PARTNERSHIP AND COOPERATION WE WERE NEVER AT WAR WITH THE US AND I DON'T THINK IT WILL EVER COME TO THAT HE EVEN SAYS HE ENVIES ASPECTS OF AMERICAN SOCIETY ESPECIALLY THE NATION'S RESPECT FOR INDIVIDUAL LIBERTIES SOME DAY SAYS MR RUTSKOI WITH A FEEBLE SMILE LIFE WILL BE NORMAL HERE AS WELL THE FOCUS OF RUSSIAN POLITICAL LIFE NOW IS THE MARBLE HALL OF THE KREMLIN WHERE HUNDREDS OF DELEGATES HAVE COME TO HAMMER OUT RUSSIA'S FIRST POSTSOVIET CONSTITUTION MR YELTSIN DIDN'T ASK MR RUTSKOI TO PARTICIPATE LEAVING HIS VICE PRESIDENT TO TEND TO HIS DWINDLING NUMBER OF DUTIES IN AN ADJACENT BUILDING BUT EVEN OUT OF THE LIMELIGHT MR RUTSKOI REMAINS A POTENTIAL SOURCE OF POWER HE HAS LAUNCHED A CAMPAIGN AGAINST CORRUPTION IN HIGH GOVERNMENT CIRCLES AND HE IS TRYING TO FORM A COALITION OF SUPPORTERS IN THE RUNUP TO ELECTIONS A RECENT POLL BY THE RUSSIAN PUBLIC OPINION FOUNDATION ASKED RESPONDENTS TO NAME THE COUNTRY'S MOST APPEALING PRESIDENTIAL CANDIDATE POLITICAL VIEWS ASIDE MR RUTSKOI A FORMER PILOT WHO SPORTS A THICK MUSTACHE AND WELLCUT ITALIAN SUITS FINISHED FIRST WELL AHEAD OF MR YELTSIN BUT HIS POLITICS MAY BE OUT OF STEP WITH THE TIMES WHILE NOMINALLY A SUPPORTER OF DEMOCRACY AND FREEMARKET REFORM HE HAS ALLIED HIMSELF WITH MR YELTSIN'S MOST CONSERVATIVE OPPONENTS INCLUDING THE REVIVED COMMUNIST PARTY A POLL TAKEN JUST BEFORE MR YELTSIN'S VICTORY IN AN APRIL 25 NATIONAL REFERENDUM SHOWED JUST 12 SUPPORT FOR MR RUTSKOI THROUGHOUT THE INTERVIEW MR RUTSKOI PROJECTED THE IMAGE OF A CONFIDENT AND THOUGHTFUL MAN HE ANSWERED QUESTIONS DIRECTLY AND WITHOUT EMOTION OR IRRITATION EVEN SENSITIVE PROBES INTO RUSSIA'S AFGHANISTAN DEBACLE HE BECAME ANIMATED WHEN TALKING ABOUT HIS STABLE OF PETS INCLUDING A TERRIER WITH A TWOCENTURY PEDIGREE AND A ROOSTER THAT PERCHES ON HIS SHOULDER AND PECKS AT HIS MUSTACHE TO AN OUTSIDER IT MAY SEEM PERPLEXING THAT THE NATION'S VICE PRESIDENT HAS BECOME ONE OF THE PRESIDENT'S MOST VOCAL OPPONENTS BUT MR RUTSKOI SAYS HE HAS NO INTENTION OF STEPPING DOWN MR YELTSIN HAS NO RIGHT TO FIRE MR RUTSKOI WHO WAS POPULARLY ELECTED ALONGSIDE THE PRESIDENT IN 1991 IF I WERE TO RESIGN IT WOULD BE DISLOYAL TO THAT PART OF THE POPULATION THAT SUPPORTS ME HE SAYS MR RUTSKOI IS BANKING HIS FUTURE LEGITIMACY ON HIS RELATIVELY UNCOMPLICATED PAST UNLIKE MR YELTSIN THE VICE PRESIDENT DIDN'T COME FROM THE COMMUNIST PARTY ELITE MR RUTSKOI A CAREER SOLDIER ENTERED POLITICS JUST THREE YEARS AGO YELTSIN USED TO GIVE SPEECHES CALLING MARXISMLENINISM ONE OF THE GREATEST ACHIEVEMENTS OF MANKIND MR RUTSKOI SAYS YOU CAN'T REALLY CHANGE YOUR CONVICTIONS AT HIS AGE MR RUTSKOI DISMISSES THE NOTION THAT MR YELTSIN WON A DECISIVE VICTORY IN THE APRIL 25 REFERENDUM A VOTE THE VICE PRESIDENT SAYS WAS MEANINGLESS HE ACCUSES MR YELTSIN OF MAKING SEVEN TRILLION RUBLES WORTH OF CYNICAL PROMISES TO WIN VOTES KNOWING THAT THE PROMISES CAN'T POSSIBLY BE FULFILLED THERE IS A PATTERN OF LIES AND DECEIT MR RUTSKOI SAYS A NEW ERA IS DAWNING MR RUTSKOI SAYS IN WHICH YOUNG LEADERS UNBURDENED BY IDEOLOGICAL STRUGGLE ARE TAKING POWER AROUND THE WORLD HE CITES BILL CLINTON AS ONE SUCH LEADER THE 45YEAROLD MR RUTSKOI IMPLIES THAT HE TOO IS PART OF THIS NEW WAVE IF MR RUTSKOI WERE RUSSIA'S PRESIDENT HIS FIRST PRIORITY WOULD BE TO RESTORE ORDER IN THE OUTLYING AREAS OF THE FORMER SOVIET UNION HE WOULD TRY TO STOP THE FIGHTING IN SEVERAL REGIONS AND DRAW THE REPUBLICS INTO A VOLUNTARY UNION TO REPLACE THE USSR THERE IS LITTLE SENTIMENT OUTSIDE OF RUSSIA FOR SUCH A UNION BUT MR RUTSKOI EXPECTS THAT IF MOSCOW WERE TO TAKE THE RIGHT APPROACH PEOPLE WOULD VOLUNTARILY RETURN MR RUTSKOI ALSO WOULD OVERHAUL MR YELTSIN'S ECONOMIC REFORMS WHAT HAS HAPPENED TO THE FINANCIAL SYSTEM OF RUSSIA IS ONE OF THE CRIMES OF THE CENTURY HE SAYS TO HALT THE RUBLE'S SLIDE HE WOULD IMPOSE A FIXED EXCHANGE RATE OF 100 RUBLES TO THE DOLLAR A RATE BASED HE SAYS ON AN EVALUATION OF RUSSIAN ASSETS TECHNOLOGY AND KNOWHOW CURRENT FLOATING RATES ON BOTH THE OFFICIAL MOSCOW EXCHANGE AND THE BLACK MARKET PEG THE DOLLAR'S VALUE AT MORE THAN 1100 RUBLES TROUBLED BY THE STEEP DECLINE IN RUSSIA'S INDUSTRIAL PRODUCTION MR RUTSKOI WOULD DRASTICALLY LOWER TAXES AND OFFER SOFT CREDITS TAXES ON PRODUCERS OF FOOD HOUSING CLOTHING AND MEDICINES WOULD BE TAXED MINIMALLY SAY AT 3 THEN IT WOULD BE PROFITABLE FOR FOREIGNERS TO COME TO RUSSIA HE SAYS MR RUTSKOI IS CRITICAL OF ECONOMIC SHOCK THERAPY AND SAYS HE INSTEAD WOULD LIKE TO SEE A GRADUAL REFORM PROCESS WITH AN INITIAL PHASE LASTING PERHAPS 10 YEARS TRANSFORMATION SHOULD BE EVOLUTIONARY NOT REVOLUTIONARY MR RUTSKOI SAYS WE ALL KNOW WHAT REVOLUTIONS BRING WHAT WE HAVE TODAY SAYS MR RUTSKOI IS NOT A MARKET BUT A LARGE BAZAAR WITH NO ENTREPRENEURSHIP IT'S LIKE MEDIEVAL TIMES BARTER BUY AND SELL RUSSIA'S NEWLY RICH RESIDENTS HE SAID IN A RECENT SPEECH TO PARLIAMENTARY DEPUTIES HAVE AMASSED WEALTH BY BRAZENLY ROBBING THE PEOPLE WHO ARE ON THE BRINK OF POVERTY IN THE INTERNATIONAL SPHERE MR RUTSKOI PROPOSES EMPOWERING THE UNITED NATIONS TO BRING TO TRIAL BEFORE A GLOBAL MILITARY COURT THOSE POLITICAL LEADERS WHO INITIATE WARS OR GENOCIDE UNDER QUESTIONING HE CONCEDES THAT THE FORMER SOVIET LEADERSHIP WOULD HAVE HAD TO FACE SUCH A TRIBUNAL FOR ITS ROLE IN AFGHANISTAN A WAR THAT MR RUTSKOI HAS REFERRED TO IN THE PAST AS JUST THE ONLY WAY OUT OF RUSSIA'S POLITICAL STALEMATE MR RUTSKOI SAYS IS EARLY ELECTIONS FOR BOTH PARLIAMENT AND THE PRESIDENT IF SOMEONE PROPOSES ME AS A CANDIDATE HE SAYS I'LL RUN 9306110128 930611 TECHNOLOGY & HEALTH US HEALTH AGENCY'S AIDS REPORT GIVES INSTRUCTIONS ON CONDOMS DRUG NEEDLES BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN THE US PUBLIC HEALTH SERVICE HAS TAKEN THE CONDOM OUT OF THE WRAPPER AT THE NINTH INTERNATIONAL CONFERENCE ON AIDS HERE SURGEON GENERAL ANTONIA NOVELLO ISSUED AN UPDATED REPORT ON ACQUIRED IMMUNE DEFICIENCY SYNDROME THAT GIVES EXPLICIT INSTRUCTIONS ON HOW TO USE A CONDOM AND HOW TO CLEAN INTRAVENOUS NEEDLES A REPUBLICAN APPOINTEE DR NOVELLO WAS STYMIED IN HER EFFORTS TO ISSUE THE REPORT IN 1991 BY CONSERVATIVE OBJECTIONS SHE SAID DONNA SHALALA PRESIDENT CLINTON'S SECRETARY OF HEALTH AND HUMAN SERVICES TOLD THE SURGEON GENERAL IN JANUARY 1993 TO PUBLISH THE UPDATED REPORT LIKE THE FIRST EDITION SEVEN YEARS AGO THE NEW REPORT NOTES THE SUREST WAY TO PROTECT YOURSELF AGAINST HIV INFECTION IS NOT TO HAVE SEX AT ALL OR TO HAVE SEX WITH ONLY ONE STEADY UNINFECTED PARTNER BUT WHEREAS THE PRIOR REPORT KEPT PROPHYLACTICS UNDER WRAPS THE NEW VOLUME CONTAINS PHOTOGRAPHS OF UNWRAPPED CONDOMS AND A FIVESTEP GUIDE FOR USERS THE NEW REPORT STILL COUNSELS PEOPLE AGAINST INTRAVENOUS DRUG USE AND STRONGLY URGES USERS TO STOP OR ELSE TO USE FRESH NEEDLES BUT IT BREAKS GROUND BY INCLUDING INSTRUCTIONS ON HOW TO CLEAN NEEDLES WITH HOUSEHOLD BLEACH TO KILL THE VIRUS AND REDUCE THE USERS' RISK OF CONTRACTING AIDS THIS IS THE MOST EXPLICIT WE HAVE BEEN SAID DR NOVELLO A PEDIATRICIAN AND CAREER PUBLIC HEALTH SERVICE OFFICER WHO BRANDISHED THE REPORT WITH ITS CONDOM PHOTOS WEARING HER BRASSBUTTONED HEALTHSERVICE UNIFORM THE REPORT STOPS SHORT OF CONDONING FREE NEEDLEEXCHANGE PROGRAMS NOW ACTIVE IN 33 CITIES ACROSS THE US DR NOVELLO SAID THE STRATEGY STILL ILLEGAL IN HALF OF THE CITIES NEEDS MORE DATA BEFORE BEING FEDERALLY SANCTIONED THE UPDATED SURGEON GENERAL'S REPORT ALSO STRESSES THE NEW WAVE OF THE EPIDEMIC IN WOMEN CHILDREN AND MINORITIES TO DATE AN ESTIMATED ONE MILLION AMERICANS ARE INFECTED WITH HIV AND MORE THAN 289000 HAVE DEVELOPED AIDS OF THESE MORE THAN 182000 HAVE DIED ONCE LARGELY CONFINED TO HOMOSEXUAL MEN THE PROFILE IS CHANGING 11 OF AIDS CASES WERE IN WOMEN AND 9 OF CASES BECAUSE OF HETEROSEXUAL CONTACT IN 1992 THE REPORT SAYS AFRICANAMERICANS AND HISPANICS ONEFIFTH OF THE US POPULATION ACCOUNT FOR NEARLY HALF OF AIDS CASES THE REPORT SERVES AS DR NOVELLO'S SWAN SONG BECAUSE SHE IS STEPPING DOWN AS SURGEON GENERAL AT THE END OF THE MONTH JOCELYN ELDERS IS PRESIDENT CLINTON'S CHOICE TO SUCCEED DR NOVELLO AS SURGEON GENERAL THE REPORT CAN BE OBTAINED BY CALLING 1800342AIDS SEPARATELY RESEARCHERS FROM FRANCE ENGLAND AND ITALY PRESENTED AT THE AIDS CONFERENCE THE FIRST VERY PRELIMINARY HUMANTEST RESULTS OF A NEW DRUG FROM HOFFMANLA ROCHE INC A UNIT OF ROCHE HOLDING LTD OF SWITZERLAND THE NEW DRUG THWARTS HIV BY BLOCKING A KEY ENZYME A PROTEASE WHICH THE VIRUS NEEDS TO CHURN OUT COPIES OF ITSELF JEAN DORMONT A FRENCH AIDS RESEARCHER FROM THE ASSISTANCE PUBLICHOPITAUX DE PARIS SAID THAT A 16WEEK TEST OF 60 PATIENTS SHOWED THE COMPOUND RO 318959 SO FAR LOOKS GENERALLY SAFE AND SEEMS TO SPARK A RISE IN IMMUNE CELLS ENGLISH AND ITALIAN STUDIES ECHOED HIS PRELIMINARY RESULTS AT LEAST A DOZEN GROUPS ARE TRYING TO DEVELOP SIMILAR DRUGS BUT MUCH MORE STUDY IS NEEDED TO PROVE THEY WORK 9306110126 930611 MERGER PLANNED BY COLUMBIA HOSPITAL CORP GALEN HEALTH CARE INC AGREES TO STOCK SWAP VALUED AT 32 BILLION BY ROBERT TOMSHO AND GABRIELLA STERN STAFF REPORTERS OF THE WALL STREET JOURNAL COLUMBIA HOSPITAL CORP AND GALEN HEALTH CARE INC SAID THEY WILL MERGE IN A 32 BILLION STOCK SWAP THAT WILL CREATE ONE OF THE NATION'S LARGEST HEALTHCARE PROVIDERS WITH POLITICAL PRESSURE MOUNTING ON HEALTHCARE COMPANIES TO CUT COSTS THE MERGER GIVES SMALL BUT FASTGROWING COLUMBIA AN OPPORTUNITY TO TEST ITS AGGRESSIVE COSTCUTTING STRATEGIES IN A HOST OF NEW URBAN MARKETS NOW SERVED BY THE MUCH LARGER GALEN GALEN WAS SPUN OFF FROM HUMANA INC IN FEBRUARY WHEN SHAREHOLDERS VOTED TO SPLIT HUMANA INTO A HEALTHPLAN CONCERN AND A HOSPITAL COMPANY WITH COMBINED ANNUAL REVENUES ESTIMATED TO EXCEED 5 BILLION THE NEW ENTITY TO BE NAMED COLUMBIA HEALTHCARE CORP WILL OWN AND OPERATE 99 HOSPITALS WITH MORE THAN 22000 LICENSED BEDS IN 19 STATES AND TWO FOREIGN COUNTRIES BY CONTRAST HOSPITAL CORP OF AMERICA OF NASHVILLE TENN WHICH WOULD BE ITS NEAREST COMPETITOR HAD REVENUE OF ABOUT 51 BILLION DURING FISCAL 1992 AND OWNS 73 HOSPITALS WITH 17000 BEDS UNDER THE MERGER'S TERMS GALEN SHAREHOLDERS WILL RECEIVE 0775 SHARES OF COLUMBIA STOCK FOR EACH GALEN SHARE HELD GALEN CURRENTLY HAS ABOUT 160 MILLION SHARES OUTSTANDING COLUMBIA WITH ABOUT 26 MILLION COMMON SHARES OUTSTANDING SAID IT WOULD ISSUE 123 MILLION NEW SHARES TO COMPLETE THE TRANSACTION WHICH REMAINS SUBJECT TO APPROVAL BY THE SHAREHOLDERS OF BOTH COMPANIES THE ANNOUNCEMENT WAS MADE AFTER THE CLOSE OF TRADING YESTERDAY IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE GALEN SHARES ROSE 1 CLOSING AT 15 A SHARE AND IN NATIONAL OVERTHECOUNTER TRADING COLUMBIA SHARES FELL 25 CENTS CLOSING AT 2550 THE MERGED ENTITY WILL BE BASED IN LOUISVILLE KY HOME TO GALEN THE TWO COMPANIES SAID THEY HOPED TO COMPLETE THE TRANSACTION BY THE END OF SEPTEMBER TALKS BETWEEN THE TWO COMPANIES BEGAN EARLIER THIS YEAR WHEN COLUMBIA APPROACHED GALEN ABOUT ACQUIRING TWO OF GALEN'S HOSPITALS LOCATED IN BEAUMONT TEXAS AND PEMBROKE PINES FLA FOR COLUMBIA BASED IN FORT WORTH TEXAS THE MERGER MARKS A BOLD DEPARTURE FROM ITS SOFAR SUCCESSFUL STRATEGY OF SLOWLY ACQUIRING MULTIPLE ACUTECARE HOSPITALS IN A FEW MARKETS CONSOLIDATING THEM TO CUT COSTS AND INCREASE OCCUPANCY RATES AND THEN RAPIDLY ACQUIRING FREESTANDING SURGERY CENTERS REHABILITATION FACILITIES AND OTHER OUTPATIENT FACILITIES THAT CAN MAKE IT ATTRACTIVE TO HEALTH MAINTENANCE ORGANIZATIONS STILL JOHN F HINDELONG AN ANALYST WITH DONALDSON LUFKIN & JENRETTE SECURITIES CORP DESCRIBED THE MARRIAGE AS AN OUTSTANDING MERGER STRATEGICALLY ADDING THAT THE ADDITION OF GALEN'S 73 HOSPITALS TO THE 26 IT ALREADY OWNS WOULD STRENGTHEN COLUMBIA'S NEGOTIATING POSTURE WITH MANAGEDCARE ENTITIES AND ITS OVERALL MARKET POSITION WILL IMPROVE SUBJECT TO A CLOSER REVIEW OF GALEN'S PROPERTIES AND OPERATIONS RICHARD SCOTT COLUMBIA'S CHAIRMAN AND CHIEF EXECUTIVE SAID HE DOES NOT PRESENTLY ANTICIPATE CLOSING ANY OF GALEN'S FACILITIES LAYING OFF ANY OF ITS 51800 EMPLOYEES OR MAKING DRASTIC CHANGES IN EXISTING MANAGEMENT AT GALEN'S FACILITIES HE ESTIMATED THAT THE MERGER WOULD RESULT IN 30 MILLION IN ANNUAL SAVINGS FOR THE NEW ENTITY FROM PURCHASING AND ADMINISTRATIVE COSTS A LOT OF THEIR ASSETS FIT OURS FROM A STRATEGIC STANDPOINT SAID MR SCOTT WHO WILL BECOME PRESIDENT AND CHIEF EXECUTIVE OF THE NEW ENTITY THE CHAIRMAN'S JOB WILL GO TO CARL F POLLARD CURRENTLY GALEN'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER CHIEF OPERATING OFFICERS FROM THE TWO MERGING COMPANIES WILL SHARE DUTIES AT NEW ENTITY MEANWHILE ITS BOARD WILL CONSIST OF SIX CURRENT GALEN DIRECTORS INCLUDING MR POLLARD AND FIVE CURRENT COLUMBIA DIRECTORS INCLUDING MR SCOTT COMING ONLY A FEW MONTHS AFTER GALEN'S FORMATION IT'S UNUSUAL THAT A SMALLER COMPANY WOULD BE THE SURVIVING ENTITY AND THAT THE CHIEF EXECUTIVE OFFICER OF THE LARGER ENTITY GIVES UP THAT POSITION TO THE SMALLER ENTITY SAID KENNETH ABRAMOWITZ AN ANALYST WITH SANFORD C BERNSTEIN & CO HE ADDED HOWEVER THAT IT DOES SEEM GALEN BECAME ENAMORED WITH COLUMBIA'S SUCCESS AT IMPLEMENTING PHYSICIANS' JOINT VENTURES AND THINKS THERE'S AN OPPORTUNITY TO IMPROVE THEIR GROWTH BY ADOPTING THOSE SIMILAR STRATEGIES DESPITE OWNING DOMINANT WELLRESPECTED FACILITIES IN MANY MARKETS GALEN PROPERTIES SUFFERED BECAUSE HUMANA THEIR FORMER PARENT COMPANY ALLOWED THEM TO COMPETE WITH EACH OTHER IN SOME CITIES AND BECAUSE COMPETING HEALTH MAINTENANCE CONCERNS AVOIDED SENDING PATIENTS THERE IN CONTRAST COLUMBIA HAS MARKET MANAGERS WHO OVERSEE ADMINISTRATION AND PURCHASING FOR ITS HOSPITALS IN A GIVEN MARKET IN MARKETS SUCH AS HOUSTON AND MIAMI COLUMBIA HAS ALSO BECOME A MAJOR PLAYER BY QUICKLY ACQUIRING OUTPATIENT SURGERY AND DIAGNOSTIC CENTERS TO COMPLEMENT ITS ACUTECARE FACILITIES AND MR SCOTT SAID THAT STRATEGY WOULD ACCELERATE AFTER THE MERGER FOUNDED IN 1987 WHEN MR SCOTT A DALLAS LAWYER JOINED FORCES WITH FORT WORTH FINANCIER RICHARD RAINWATER WHO STILL HOLDS A 12 STAKE IN THE COMPANY COLUMBIA BEGAN ACQUIRING HOSPITALS AT BARGAIN PRICES IN 1988 AS OTHER OLDER COMPETITORS WERE BEGINNING TO STUMBLE COLUMBIA GAVE ITS PHYSICIANS OWNERSHIP STAKES IN ITS PROPERTIES DESPITE CRITICISM FROM SOME HEALTHCARE EXPERTS WHO CONTEND THAT SUCH OWNERSHIP STAKES LEAD TO UNNECESSARY MEDICAL PROCEDURES AND OTHER COSTS THAT TACTIC WILL APPARENTLY CONTINUE AT THE NEW ENTITY IF THE MARKET SEEMS TO INDICATE A JOINTVENTURE STRATEGY WOULD BE HELPFUL IN A GIVEN MARKETPLACE THEN IT'S LIKELY WE'LL PURSUE THAT STRATEGY MR POLLARD SAID DESPITE SOME OVERLAP OF THE TWO SYSTEMS IN CITIES SUCH AS HOUSTON AND MIAMI EXECUTIVES AT THE TWO COMPANIES SAID THEY DON'T ANTICIPATE ANTITRUST PROBLEMS WE HAVE ALREADY HAD DISCUSSIONS WITH THE FEDERAL TRADE COMMISSION SAID MR SCOTT WHOSE COMPANY HAS HAD TO DELAY THE ACQUISITION OF A FLORIDA HOSPITAL EARLIER THIS YEAR UNTIL AN ANTITRUST CHALLENGE IS RESOLVED MEANWHILE THE MERGER PUTS COLUMBIA INTO 15 NEW MAJOR METROPOLITAN MARKETS INCLUDING DENVER CHICAGO AND KANSAS CITY MO THEY DIDN'T BUY 73 HOSPITALS THEY BOUGHT 15 MARKETS SAID DEAN WITTER REYOLDS INC ANALYST TODD RICHTER WHO CALLED THE TRANSACTION THE DEAL OF THE DECADE IN THE HOSPITAL BUSINESS HE SAID HE PLANS TO RAISE HIS ESTIMATE ON COLUMBIA'S ANNUAL EARNINGS TO 190 A SHARE FROM 145 AS A RESULT 9306110125 930611 MCDONNELL DOUGLAS GETS ORDER PARIS MCDONNELL DOUGLAS CORP SAID FAR EASTERN AIR TRANSPORT CORP OF TAIWAN ORDERED TWO MD82 JETLINERS FOR DELIVERY THIS MONTH TERMS WEREN'T DISCLOSED THE AIRCRAFT GENERALLY SELL FOR BETWEEN 25 MILLION AND 30 MILLION EACH FAR EASTERN CURRENTLY OPERATES THREE MD82S AND ONE MD83 ST LOUISBASED MCDONNELL DOUGLAS WHICH ANNOUNCED THE ORDER AT THE PARIS AIR SHOW HAS DELIVERED MORE THAN 1050 OF THE MD80SERIES AIRCRAFT TO DATE 9306110124 930611 IMPORTERS IN CANADA WARN US ENERGY TAX COULD SHACKLE TRADE OTTAWA THE CANADIAN MANUFACTURERS' ASSOCIATION WARNED THAT A PROPOSED US ENERGY TAX ON IMPORTED GOODS WOULD SERIOUSLY HAMPER TRADE BETWEEN CANADA AND THE US THE PROPOSED LEVY WHICH IS PART OF THE CLINTON ADMINISTRATION'S CURRENT BUDGET BILL WOULD APPLY TO IMPORTED GOODS IN WHICH THE COST OF ENERGY ACCOUNTS FOR 2 OR MORE OF THEIR VALUE THE PROPOSED MEASURE WOULD INCREASE US CONSUMERS' COSTS FOR A A VERY LARGE PORTION OF MANUFACTURED GOODS IMPORTED FROM CANADA THE ASSOCIATION SAID EVEN IN CAPITAL AND LABORINTENSIVE PRODUCTS SUCH AS AUTO PARTS ENERGY COSTS GENERALLY EXCEED 2 OF TOTAL COSTS THE ASSOCIATION'S PRESIDENT STEPHEN VAN HOUTEN SAID IN A LETTER TO PRESIDENT CLINTON HE ALSO SAID WE SERIOUSLY QUESTION WHETHER THE IMPOSITION OF SUCH A TAX IS LAWFUL UNDER THE TERMS OF THE CANADAUS FREE TRADE AGREEMENT OR THE GENERAL AGREEMENT ON TARIFFS AND TRADE 9306110123 930611 BIDS COULD SAVE MONEY FOR MUNI SELLERS BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WITH STATES AND TOWNS AROUND THE COUNTRY SCRUTINIZING HOW THEY SELL MUNICIPAL BONDS A NEW STUDY FINDS THAT THE PITTSBURGH AREA MIGHT HAVE SAVED MILLIONS BY STICKING TO COMPETITIVE BIDDING NOT ONLY MIGHT THE CITY HAVE SAVED 22 MILLION BY AVOIDING NEGOTIATED DEALS ON A HALFDOZEN FINANCINGS THE STUDY SAYS BUT SURROUNDING ALLEGHENY COUNTY MIGHT HAVE SAVED 51 MILLION OVER THE LIFE OF ONE PARTICULARLY EXPENSIVE BOND ISSUE THE FINDINGS ARE OF INTEREST NATIONWIDE BECAUSE 80 OF MUNICIPAL BOND OFFERINGS LAST YEAR WERE NEGOTIATED OR ARRANGED BY WALL STREET FIRMS WITHOUT SOLICITING RIVAL BIDS FROM OTHER FIRMS THE STUDY WILL PROVIDE AMMUNITION FOR CRITICS WHO SAY MUNICIPALITIES PAY TOO MUCH TO BORROW WHEN THEY RELY ON NEGOTIATED DEALS THE STUDY COMMISSIONED BY THE PITTSBURGH CITY COUNCIL AND CONDUCTED BY THE GOVERNMENT FINANCE OFFICERS ASSOCIATION A TRADE GROUP EXAMINED A SAMPLE OF 37 BOND SALES BY THE CITY AND NEARBY LOCAL AND COUNTY AUTHORITIES FROM 1986 THROUGH 1992 THE SAMPLING INCLUDED 31 NEGOTIATED AND SIX COMPETITIVE DEALS ACCORDING TO THE GOVERNMENT FINANCE GROUP BORROWERS WOUND UP HAVING TO PAY YIELDS EQUAL TO OR LESS THAN THE NATIONAL AVERAGE EVERY TIME THEY SOLD BONDS COMPETITIVELY BUT ONLY HALF THE TIMES THEY SOLD BONDS THROUGH NEGOTIATION THIS MEANS THAT FOR A HALFDOZEN PITTSBURGH DEALS TOTALING 464 MILLION THE EXTRA INTEREST TO BE PAID OVER THE LIFE OF THE BONDS AMOUNTED TO ABOUT 22 MILLION THE STUDY SAID THE DEBATE OVER THE TWO METHODS OF SELLING BONDS HAS GROWN LOUDER AND MORE CONTENTIOUS SINCE LOCAL STATE AND FEDERAL AUTHORITIES BEGAN INVESTIGATING ALLEGATIONS OF POLITICAL PATRONAGE IN THE AWARDING OF BOND UNDERWRITING WORK FOR THE NEW JERSEY TURNPIKE AUTHORITY MANY UNDERWRITERS AND ISSUERS CLAIM THAT THE GROWING NUMBER OF NEGOTIATED DEALS IS JUSTIFIED THEY CITE THE INCREASING COMPLEXITY OF REFINANCING OLDER BONDS AND THE GROWTH OF SPECIALLY TAILORED DERIVATIVE SECURITIES IN 1980 NEGOTIATED BOND SALES ACCOUNTED FOR ONLY 59 OF THE TOTAL VOLUME OF LONGTERM MUNI BONDS SOLD THE PUBLIC SECURITIES ASSOCIATION AN INDUSTRY GROUP HAS ARGUED THAT THE NEGOTIATED BIDDING PROCESS ENCOURAGES INNOVATIONS IN THE MARKET RESULTING IN EVEN GREATER SAVINGS TO ISSUERS BUT MICHELLE MADOFF A PITTSBURGH CITY COUNCIL MEMBER WHO PUSHED FOR THE STUDY DISAGREES JUST THINK OF THE MILLIONS OF DOLLARS THAT GO OUT IN NEGOTIATED BOND OFFERINGS TO FINANCIAL ADVISERS UNDEWRITERS AND BOND LAWYERS AND HOW THAT MONEY COULD BE USED ELSEWHERE SHE SAYS AND MULTIPLY THAT OVER AND OVER FOR ALL OVER THE US MS MADOFF SAYS SHE HAS TRIED FOR SEVERAL YEARS TO PERSUADE CITY OFFICIALS TO DO MORE COMPETITIVE BOND DEALS BUT HAS HAD TO BATTLE SKEPTICISM POLITICS AND THE SUPREME GREED OF ALL WHO BENEFIT FROM NEGOTIATED DEALS NOT ALL COMPETITIVE DEALS SAVE MONEY ACCORDING TO THE PITTSBURGH REPORT ONE COMPETITIVE DEAL FOR EXAMPLE CAME AT A YIELD THAT THE STUDY SAID WOULD COST THE ISSUER ABOUT 324000 MORE IN INTEREST PAYMENTS OVER THE LIFE OF THE BONDS COMPARED WITH THE AVERAGE YIELD FOR THAT DAY BUT THE FINANCE ASSOCIATION DIDN'T BELIEVE THAT THIS DEAL SHOWED A BIG ENOUGH DIFFERENCE IN INTEREST PAYMENTS TO COUNT IT AS BEING ABOVE THE MARKET FOR A 60 MILLION BOND OFFERING THAT STILL HAS 25 YEARS UNTIL IT MATURES SUCH A DIFFERENCE IS STATISTICALLY INSIGNIFICANT SAID JB KURISH DIRECTOR OF THE RESEARCH ARM OF THE CHICAGOBASED GOVERNMENT FINANCE OFFICERS ASSOCIATION THE ASSOCIATION PLANS TO CONDUCT SIMILAR STUDIES ON A NATIONAL SCALE DURING THE NEXT YEAR 9306110122 930611 WHO'S NEWS CAE INC CAE INC TORONTO JOHN E CALDWELL WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING DAVID H RACE 64 YEARS OLD WHO WAS APPOINTED CHAIRMAN MR CALDWELL 43 PREVIOUSLY SERVED AS EXECUTIVE VICE PRESIDENT A POSITION THAT WON'T BE FILLED THE PREVIOUS CHAIRMAN WAS R FRASER ELLIOTT 71 WHO WILL REMAIN A DIRECTOR CAE WHICH CHANGED ITS NAME FROM CAE INDUSTRIES LTD MAKES COMMERCIAL AND MILITARY AIRCRAFT SIMULATORS AND DEVELOPS RELATED TRAINING SYSTEMS 9306110121 930611 REVIEW & OUTLOOK EDITORIAL ABOLISH THE SPEECH CODES THE DAY AFTER PRESIDENT CLINTON WITHDREW LANI GUINIER'S NOMINATION FOR THE POST OF ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS SHE DECLARED BEFORE ALL THE WORLD THAT SHE HOPED WE ARE NOT NOW WITNESSING THE DAWNING OF A NEW INTELLECTUAL ORTHODOXY IN WHICH THOUGHTFUL PEOPLE CAN NO LONGER DEBATE PROVOCATIVE IDEAS WITHOUT DENYING THE COUNTRY THEIR TALENTS AS PUBLIC SERVANTS OR SHE MIGHT HAVE ADDED WITHOUT BEING PUNISHED FOR VIOLATING SOME SPEECH CODE DEVISED BY HARASSMENT MONITORS IT'S GOOD TO LEARN THAT MS GUINIER HAS JOINED THE GROWING NUMBER OF CITIZENS ALERT TO THE DANGERS OF ENFORCED ORTHODOXY HER WORDS ARE ESPECIALLY RELEVANT DURING THESE DAYS OF COMMENCEMENT SPEECHES WHEN PAEANS TO THE HIGH VALUE OF INTELLECTUAL INQUIRY RING ACROSS THE QUADRANGLES AND GREENS ONLY YESTERDAY 200 GRADUATING HARVARD STUDENTS TURNED THEIR BACKS AS GENERAL COLIN POWELL DELIVERED HIS COMMENCEMENT ADDRESS THE GOOD NEWS IS NOT ONLY THAT SENSIBLE PEOPLE AT HARVARD PREVAILED IN INVITING ONE OF THE COUNTRY'S MOST EMINENT BLACK AMERICANS BUT THAT THE SOME 1200 OTHER GRADUATES CONFERRED A STANDING OVATION ON HIM IF THE CAUSE OF FREE THOUGHT ON CAMPUS IS BEGINNING TO FIND NEW DEFENDERS IT IS NONE TOO SOON IN THE U OF PENN'S JUSTLY FAMED WATER BUFFALO EXTRAVAGANZA THE WORLD SAW THE EXTREMES OF ABSURDITY TO WHICH SUCH SPEECH CODES LEAD VAGUE THE CODES MAY BE BUT THE PUNISHMENT METED OUT TO THOSE WHO RUN AFOUL OF THEM ARE PAINFULLY CLEAR AND HARSH AS PENN'S EDEN JACOBOWITZ AND COUNTLESS OTHERS WORSE OFF CAN ATTEST INDEED THE PROLIFERATION OF SPEECH CODES AT AMERICA'S INSTITUTIONS OF HIGHER LEARNING STANDS AS ONE OF THE SADDEST CHAPTERS IN THIS COUNTRY'S INTELLECTUAL HISTORY PENN MAY HAVE BEEN A MOST SPECTACULAR EXAMPLE OF CENSORSHIP RUN AMOK ON A CAMPUS BUT IT WAS HARDLY THE ONLY ONE JUST A FEW YEARS BACK TUFTS UNIVERSITY'S DEAN OF STUDENTS OFFICE INITIATED A COMPLEX POLICY DIVIDING THE SCHOOL INTO ROUGHLY THREE SPEECH ZONES THIS DECREE WHICH COULD HAVE COME STRAIGHT FROM SOME FUTURISTIC POSTDEMOCRATIC SATIRE WAS TOO MUCH FOR SOME STUDENTS WHO CORDONED THE CAMPUS OFF INTO SECTORS WITH TAPE AND MARKERS THEY DUBBED THE SECTORS THE FREE SPEECH ZONE THE LIMITED SPEECH ZONE AND THE TWILIGHT ZONE SHORTLY AFTER THIS DISPLAY OF RESISTANCE AND RIDICULE A POTENT WEAPON AS THE PENN ADMINISTRATION DISCOVERED TUFTS REVERSED ITS SPEECH ZONE PLAN UNIVERSITY ADMINISTRATORS WHO HAVE ON THE WHOLE ACQUIESCED IN THE REPRESSION OF FREE SPEECH ON CAMPUSES MIGHT DO WELL TO SEE THE WATER BUFFALO CASE AND ITS CONSEQUENCES FOR PENN PRESIDENT SHELDON HACKNEY AS A HARD BUT CLEAR LESSON MR HACKNEY AND OTHER CAMPUS ADMINISTRATORS SOLEMNLY INSIST ON PRESENTING THEMSELVES AS MERE SERVANTS OF THE STUDENTS AND FACULTY WITH NO CHOICE BUT TO COMPLY WITH THE CODES THEY HAVE DEVISED THE FACT IS OF COURSE THAT UNIVERSITY HEADS DO INDEED HAVE CHOICES THEY MAY CHOOSE TO SEE THEMSELVES AS PENN'S PRESIDENT DID OR THEY MAY CHOOSE TO LEAD UNIVERSITY HEADS LIKE FORMER YALE PRESIDENT BENNO SCHMIDT AND SOME OTHERS CHOSE TO LEAD RESISTING EFFORTS TO REGULATE SPEECH AND FREEDOM OF INQUIRY IN A SPEECH TO YALE FRESHMEN CITED AT USEFUL LENGTH IN NAT HENTOFF'S FREE SPEECH FOR ME BUT NOT FOR THEE MR SCHMIDT SAID OFFENSIVE SPEECH CANNOT BE SUPPRESSED UNDER OPENENDED STANDARDS WITHOUT LETTING LOOSE AN ENGINE OF CENSORSHIP THAT CANNOT BE CONTROLLED VAGUE AND UNPREDICTABLE POSSIBILITIES OF PUNISHMENT FOR EXPRESSION ON CAMPUS ARE ANTITHETICAL TO THE IDEA OF THE UNIVERSITY WHAT MR SCHMIDT WARNED AGAINST LOOSING AN ENGINE OF CENSORSHIP IS PRECISELY WHAT HAS HAPPENED ON MANY CAMPUSES ACADEMIC TRADE PUBLICATIONS ROUTINELY CARRY ACCOUNTS OF PROFESSORS OR STUDENTS HAULED UP ON CHARGES OF HARASSMENT OR RACISM BY SOME AGGRIEVED PARTY WE WERE HAPPY TO HAVE PLAYED SOME PART IN BRINGING THE EDEN JACOBOWITZ CASE AT PENN TO WIDER PUBLIC ATTENTION BUT IT IS IMPORTANT TO UNDERSTAND HOW UNEXCEPTIONAL THAT CASE WAS THAT THIS AWFUL INTIMIDATION AND SELFCENSORSHIP FLOURISHES ELSEWHERE IS CAUSED BY THE FACT THAT SO MANY SCHOOLS ARE LED BY WHAT ARE SIMPLY WEAK MEN THE SUPPORTERS OF THESE GUIDELINES CONTINUE TO ARGUE THAT THE WATER BUFFALO CASE AND SIMILAR FOLLIES DERIVE FROM POORLY DEFINED OR OVERZEALOUSLY ENFORCED CODES THE ANSWER TO SUCH ARGUMENT SHOULD BE OBVIOUS BY NOW NAMELY THAT IT IS THE EXISTENCE OF THE CODES THEMSELVES AND THE CENTRAL ROLE THEY PLAY IN FOMENTING AN ATMOSPHERE OF REPRESSION THAT IS THE PROBLEM STILL ADMINISTRATORS REASSURE US THAT THE CODES ARE BEING REVISED THEY ARE MISSING THE POINT WHAT WE LEARNED AT PENN AND ELSEWHERE IS THAT IT IS TIME FOR THE SPEECH CODES TO GO ABOLISH THEM THEY ARE A BLOT ON THE IDEA OF A UNIVERSITY 9306110120 930611 WHITE HOUSE OFFICIAL GETS LESSON ON FED'S SENSITIVITY WASHINGTON PRESIDENT CLINTON'S PRESS SECRETARY GOT A LESSON ON HOW SENSITIVE A SUBJECT THE FEDERAL RESERVE CAN BE DISCLOSING THAT FED CHAIRMAN ALAN GREENSPAN MET WITH MR CLINTON WEDNESDAY NIGHT DEE DEE MYERS TOLD REPORTERS THAT THE FED CHIEF SAID PASSAGE OF THE PRESIDENT'S DEFICITREDUCTION PLAN WOULD HELP KEEP INTEREST RATES LOW BUT THAT APPARENTLY SOUNDED TOO MUCH LIKE MR GREENSPAN WAS ENDORSING THE SPECIFICS OF THE CLINTON PLAN WHICH HE HASN'T MS MYERS LATER ISSUED A WRITTEN CLARIFICATION SAYING SHE HADN'T MEANT TO IMPLY THAT MR GREENSPAN WAS ENDORSING THE PRESIDENT'S PLAN RATHER HE TOLD THE PRESIDENT THAT ANY CREDIBLE DEFICITREDUCTION PLAN WOULD HELP TO KEEP LONGTERM INTEREST RATES LOW A FED SPOKESMAN WOULDN'T SAY IF MR GREENSPAN HAD COMPLAINED I CAN TELL YOU THAT THE CLARIFICATION IS CORRECT HE SAID SEPARATELY TREASURY SECRETARY LLOYD BENTSEN DUCKED A REPORTER'S QUERY ABOUT THE POSSIBILITY THAT THE FED MAY RAISE SHORTTERM RATES IT'S THE FEDERAL RESERVE'S PROVINCE INSOFAR AS SHORTTERM INTEREST RATES ARE CONCERNED HE SAID WHAT I AM CONCERNED ABOUT IS LONGTERM INTEREST RATES HE SAID WARNING THAT THE BOND MARKET WOULD PUSH LONGTERM RATES UP IF CONGRESS FAILS TO APPROVE A DEFICITREDUCTION BILL 9306110119 930611 MORGAN STANLEY GROUP PLANS AN EXPANSION IN THE ASIAN MARKET SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE CHAIRMAN OF MORGAN STANLEY GROUP INC SAID THE SECURITIES COMPANY CONSIDERS ASIA EXCLUDING JAPAN ITS NEXT EMERGING MARKET AND PLANS TO BEEF UP ITS STAFF IN THE REGION MORGAN STANLEY PLANS TO BOOST ITS STAFF THERE BY 50 THIS YEAR TO 300 PEOPLE CHAIRMAN RICHARD FISHER SAID YESTERDAY AFTER THE COMPANY'S ANNUAL SHAREHOLDERS' MEETING AT THE START OF THE YEAR THE COMPANY HAD 150 EMPLOYEES IN HONG KONG AND IT EXPECTS TO EXPAND TO 200 THERE BY YEAR'S END IT ALSO PLANS TO DOUBLE TO 100 ITS ASIA STAFF STATIONED OUTSIDE HONG KONG MR FISHER ADDED THAT THE COMPANY HOPES TO OPEN AN OFFICE IN SHANGHAI CHINA THIS YEAR THE MOVE IS PART OF A TREND BY WALL STREET FIRMS INCLUDING MERRILL LYNCH & CO AND BEAR STEARNS COS OF ESTABLISHING BEACHHEADS IN CHINA FOR WHAT IS EXPECTED TO BE CONSIDERABLE FUTURE GROWTH MR FISHER ALSO SAID MORGAN STANLEY RECEIVED A POSITIVE RESPONSE TO ITS RECENT ENTRY INTO RETAILORIENTED MUTUALFUND MARKET HE SAID IT EXPECTS TO ROLL OUT MORE SUCH FUNDS ADDING THAT THEY WILL ALMOST CERTAINLY BE PEGGED AROUND NONUS SECURITIES AS FOR MERGERS AND ACQUISITIONS HE SAID THE COMPANY IS BUSIER THAN IT HAS BEEN IN THREE YEARS IT'S NOT THE FEVERISH PITCH OF THE 1980S BUT IT'S BEEN REALLY GOOD HE SAID THE COMPANY ALSO CONSIDERS REAL ESTATE ONE OF THE NEXT GROWTH MARKETS HE SAID IN OTHER MATTERS MORGAN STANLEY'S 318 MILLION STOCKREPURCHASE PROGRAM AUTHORIZED EARLIER THIS YEAR IS TWOTHIRDS COMPLETE THE COMPANY ALSO EXPECTS TO CLOSE ITS PREVIOUSLY ANNOUNCED SALE OF SWEETHEART HOLDINGS INC IN THE FIRST WEEK OF AUGUST LAST MONTH A DEFINITIVE AGREEMENT WAS SIGNED TO SELL SWEETHEART A PRODUCER OF DISPOSABLE FOODSERVICE PRODUCTS TO AN INVESTMENT GROUP LED BY AMERICAN INDUSTRIAL PARTNERS THE SALE WILL ELIMINATE MORGAN STANLEY'S 1990 BRIDGE LOAN TO SWEETHEART MORGAN STANLEY REPORTED A FIRSTQUARTER PRETAX CHARGE OF 29 MILLION IN CONNECTION WITH THE PENDING SALE 9306110118 930611 CANADA TO HOLD BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT SAID IT WILL AUCTION WEDNESDAY 170 BILLION CANADIAN DOLLARS US133 BILLION OF 75 BONDS DUE DEC 1 2003 THE PROCEEDS FROM THE AUCTION WILL BE USED TO REDEEM IN PART C207 BILLION OF GOVERNMENT BONDS MATURING JULY 1 9306110117 930611 LETTERS TO THE EDITOR DIRTY MOVIES AND ROCK DON'T CAUSE VIOLENCE I AM WRITING IN RESPONSE TO YOUR MAY 12 PAGEONE ARTICLE STREETS ARE MURDER BUT THE TUBE IS SAFE COLOMBIA TAMES TV CONCERNING THE ALLEGED LINKAGE BETWEEN IMAGES AND VIOLENCE IN PREPARING MY RECENT BOOK SENSE & CENSORSHIP THE VANITY OF BONFIRES I HAD THE PRIVILEGE OF RESEARCHING THE HISTORICAL SOCIOLOGICAL AND PSYCHOLOGICAL LITERATURE FBI AND POLICE DATA ON THE SOURCES OF VIOLENCE BOTH IN THIS COUNTRY AND OTHERS THOUGH IT IS SOOTHING TO BELIEVE WE WILL ELIMINATE VIOLENCE IF WE ELIMINATE BAD PICTURES OR ROCK LYRICS WE WILL NOT VIOLENCE SEXUAL AND OTHERWISE FLOURISHED FOR THOUSANDS OF YEARS BEFORE THE MASSMARKET PORNOGRAPHY AND ROCK INDUSTRIES MOST OF HISTORY'S RAPISTS AND CHILD ABUSERS SAW NO SUCH MATERIAL AND NEEDED NO COMMERCIALIZED IMAGES TO SHOW THEM HOW TO DO IT IF WE LOOK AT COUNTRIES TODAY WHERE NO SEXUAL MATERIAL OR ROCK IS PERMITTED SUCH AS SAUDI ARABIA OR IRAN WE DO NOT SEE SOCIETIES WITH STRONG PEACE OR WOMEN'S RIGHTS RECORDS THE SCIENTIFIC DATA INCLUDING THE MEESE COMMISSION AND SURGEON GENERAL'S REPORT FIND NO CONNECTION BETWEEN IMAGES OF SEX AND VIOLENCE THE SOCIAL PROBLEMS OF OUR DAY ARE CAUSED AND MAINTAINED BY DEEPLY ROOTED SOCIAL STRUCTURES INVOLVING POVERTY SEXISM AND RACISM AND IT IS THESE THAT NEED ADDRESSING BLAMING VIOLENCE ON PICTURES OR ROCK IS A QUICK FIX THAT FLATTERS US INTO THINKING WE ARE IMPROVING LIFE WHILE WE IGNORE REAL ISSUES IT IS THIS ATTITUDE THAT IS ESPECIALLY DANGEROUS TO WOMEN AND CHILDREN 9306110116 930611 REVIEW & OUTLOOK EDITORIAL COLLEGE BOYS SHAME ENGLAND MOST OF YOU MAY NOT HAVE NOTICED BUT THE AMERICAN SOCCER TEAM BEAT THE BRITISH TEAM 20 IN THE US CUP ON WEDNESDAY WE RAISE THIS MATTER FOR A NUMBER OF REASONS FOR STARTERS SECRETARY OF STATE CHRISTOPHER MIGHT LEAVE OFF BOSNIA TO ISSUE AN EMERGENCY TRAVELERS' ADVISORY TO ANY AMERICANS DEPARTING FOR ENGLAND IN THE NEXT 48 HOURS YOU MIGHT BE SAFER IN SARAJEVO THE TURMOIL THAT THIS LOSS TO THE US TEAM HAS CAUSED AMONG THE BRITISH CAN ONLY BE COMPARED TO WELL YOU PROBABLY CAN'T COMPARE IT TO ANYTHING REALLY THE ASSOCIATED PRESS YESTERDAY REPORTED THE LAMENTATIONS OUT OF LONDON UNDER THE HEADLINE ENGLAND IN SHOCK AFTER LOSS TO US PLEASE TAKE A SEAT AND READ FURTHER INTO THE AP'S DISPATCH LONDON AP IT WAS MORE THAN A LOSS IT WAS A NATIONAL SPORTING DISASTER ENGLAND'S 20 DEFEAT TO THE UNITED STATES IN THE US CUP WAS THE ULTIMATE HUMILIATION FOR THE COUNTRY THAT INVENTED THE GAME OR AS THE DAILY MIRROR PUT IT WE CAN'T GET ANY LOWER WEDNESDAY NIGHT'S LOSS TO THE UNITED STATES WAS AN ABJECT FAILURE AGAINST A THIRDRATE SOCCER NATION ACCORDING TO THE DAILY EXPRESS YANKS 2 PLANKS 0 HEADLINED THE SUN FLOPS REACH ALLTIME LOW SAID TODAY ENGLISH FOOTBALL DIED OF SHAME LAST NIGHT AND THE COFFIN COULD BE DRAPED WITH THE STARS AND STRIPES SAID THE EXPRESS LAMENTING THAT ENGLAND'S STARS WERE UNBELIEVABLY EASY PREY FOR A COLLECTION OF COLLEGE BOYS AND SECONDRATE PROFESSIONALS EVEN THE QUALITY PAPERS HELD NOTHING BACK THE REPUTATION OF ENGLISH FOOTBALL PLUMBED TO NEW DEPTHS SAID THE TIMES ENGLAND IS WITHOUT COHESION AND THE BASIC BELIEF IN THEMSELVES OR THEIR SKILLS IF IT WAS POSSIBLE TO WORSEN A LOSING PERFORMANCE AGAINST AN UNRATED OPPONENT ENGLAND DID IT FOR MILLIONS WATCHING THE MATCH LIVE ON TELEVISION THE ONLY RELIEF CAME WHEN THE SIGNAL FROM ACROSS THE ATLANTIC WAS TEMPORARILY LOST IN THE SECOND HALF DUE TO WEATHER CONDITIONS THE DEFEAT WAS ONE OF THE WORST IN THE COUNTRY'S 120YEAR INTERNATIONAL HISTORY IN THE SPORT POSSIBLY ONLY SURPASSED BY THE 10 LOSS TO THE UNITED STATES IN THE 1950 WORLD CUP FINALS WELL WHAT MORE CAN ONE SAY INSOFAR AS THE BRITISH LAY CLAIM TO HAVING INVENTED SOCCER WE CAN ONLY EMPATHIZE BY IMAGINING THE POSSIBILITY THAT A BRITISH BASKETBALL TEAM MIGHT HAVE DEFEATED THE AMERICAN DREAM TEAM NOT MUCH CHANCE OF THAT WE'D VENTURE WE'D CONSOLE OUR ENGLISH FRIENDS BY POINTING OUT THAT THE WIMBLEDON LAWN TENNIS CHAMPIONSHIPS ARE IMMINENT BUT INSOFAR AS THE ONLY BRITS PARTICIPATING ARE LIKELY TO BE BY SPECIAL INVITATION THERE'S NO SUCCOR THERE AS TO THE SOCCER ITSELF WE WHO ARE LIVING IN A THIRDRATE SOCCER NATION MAY HAVE TO START PAYING ATTENTION TO THE APPROACHING WORLD CUP HERE IN THE US IF LITTLE MORE THAN A COLLECTION OF AMERICAN COLLEGE BOYS CAN DEFEAT ONE OF THE WORLD'S GREAT POWERS WE'LL ALL HAVE TO LEND THE US LADS OUR ATTENTION AND SUPPORT CARRY ON KIDS 9306110115 930611 PEPSICO'S TACO BELL PULLS INTO MOSCOW ABOARD THE METRO FASTFOOD COMPANY EXPECTS TO TURN SUBWAY PLATFORMS INTO SHOWCASES FOR WARES BY ELISABETH RUBINFIEN STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW THIS RUSSIAN CITY IS GETTING ITS FIRST TASTE OF FASTFOOD BURRITOS AND UNDER THE CHANDELIERS AND MARBLE DOMES OF PARK KULTURY SUBWAY STATION NO LESS TACO BELL'S PARENT PEPSICO INC AND THE MOSCOW METROPOLITAN THE AGENCY IN CHARGE OF THE METRO SYSTEM THURSDAY LAUNCHED A JOINT VENTURE CALLED METRO EXPRESS TO SELL PEPSICO FOOD PRODUCTS IN MOSCOW'S SHOWCASE SUBWAY STATIONS AS TACO BELL MAY BE THE ULTIMATE IN AMERICAN CONSUMERISM THE MOSCOW SUBWAYS MAY BE THE PINNACLE OF SOCIALISM MARBLE PILLARS SCULPTURES AND MURALS ARE DE RIGEUR IN CENTRAL STATIONS STALIN BEGAN BUILDING HIS PET PROJECT IN 1932 BRINGING IN COAL MINERS ARTISTS AND TOP ARCHITECTS FROM AROUND THE SOVIET UNION THE FIRST LINE OPENED FROM PARK KULTURY STATION ON NEW YEAR'S DAY IN 1950 SINCE THEN A VISIT TO THE METRO HAS ALWAYS BEEN AN ESSENTIAL STOP ON A TOURIST'S SCHEDULE SOME 30 YEARS LATER AN OFFICIAL GUIDE BOOK STILL BRAGGED ABOUT THE BUILDING OF THE SYSTEM AS PROOF OF THE ADVANTAGES OF SOCIALISM OVER CAPITALISM RUSSIAN CZARS HAD REJECTED WESTERN OFFERS TO HELP BUILD A METRO SYSTEM SO IT REMAINED FOR THE YOUNG SOVIET REPUBLIC TO TACKLE A TASK THE BUILDING OF THE SUBWAY WHICH THE IMPERIAL ROMANOV DYNASTY FELT ITSELF UNABLE TO ACCOMPLISH DESPITE ITS 300YEAR REIGN LATELY AS WITH MUCH OF MOSCOW THE METRO STATIONS ARE LOOKING WORSE FOR THE WEAR A FILM OF GRIT HAS SETTLED ON THE MURALS AND THE CHANDELIERS HARDLY GLITTER HOMELESS PEOPLE AND BEGGARS SEEK SHELTER UNDERGROUND AND TEENAGERS HAWK MAPS AND PENCILS FROM EVERY CONVENIENT SPOT BUT THE SYSTEM IS STILL STRIKING FOR ITS EFFICIENCY WITH 140 STATIONS AND NINE MILLION PASSENGERS A DAY AT PEAK HOURS IT RUNS A TRAIN EVERY 85 SECONDS WITH A 9992 ONTIME RATE SAYS DMITRI GAYEV FIRST DEPUTY CHIEF OF THE METRO AND WHILE CROWDING IS WORSE THAN A YEAR AGO IT'S NOWHERE NEAR TOKYO AT RUSH HOUR THE METRO REMAINS THE ONLY SYSTEM THAT WORKS NOT WORSE THAN BEFORE PERESTROIKA DURING PERESTROIKA OR AFTER PERESTROIKA SAYS MR GAYEV PEPSICO AND METROPOLITAN WON'T DISCLOSE THE DETAILS OF THEIR FINANCIAL ARRANGEMENTS BUT METRO OFFICIALS SAY THAT PEPSICO WON THE DEAL BECAUSE IT CAME FORWARD FIRST WITH THE MOST SUITABLE PROPOSAL EXISTING TIES HELPED THE HUNGARIANDUTCH JOINT VENTURE BOMA A MINOR PARTNER IN METRO EXPRESS WAS ALREADY PROVIDING GAME MACHINES TO THE METRO WHEN IT CAME UP WITH THE FOOD CONCEPT MOSCOW ALSO WAS COMFORTABLE WITH PEPSICO THE CITY GOVERNMENT WAS EAGER TO EXPAND ITS SUCCESSFUL JOINT VENTURE WITH PIZZA HUT ANOTHER PEPSICO COMPANY AND PEPSICOLA WAS WELLKNOWN FROM ITS DECADES AS THE ONLY US SODA IN THE SOVIET UNION PEPSICO FOUND MOSCOW SUBWAY MANAGERS SYMPATHETIC TO FASTFOOD PROBLEMS THE METRO IS A HUGE SOPHISTICATED ORGANIZATION SO THEY UNDERSTAND LOGISTICAL CHALLENGES BETTER THAN OTHER PEOPLE SAYS RICHARD NORTON PEPSICOLA INTERNATIONAL'S SENIOR VICEPRESIDENT FOR BUSINESS DEVELOPMENT IN THE REGION NEGOTIATIONS BEGAN IN DECEMBER AND JUST SIX MONTHS LATER THE FIRST KIOSK OPENED MOSCOW CITY AND METRO AUTHORITIES SEE METRO EXPRESS AS A WAY TO SERVE PASSENGERS CREATE JOBS AND BRING IN REVENUE FOR PEPSICO THE DEAL PROVIDES THEM EXCLUSIVE ACCESS TO MILLIONS OF PASSENGERS FOR ALL THEIR CATEGORIES OF FOOD PRODUCTS ULTIMATELY THE KIOSKS WILL OFFER PIZZA HUT PIZZAS KENTUCKY FRIED CHICKEN AND FRITOLAY SNACKS ALONG WITH TACO BELL ITEMS MOREOVER THE METRO IS A MAGNIFICENT TEST MARKET FOR BIGGER PROJECTS THE MOBILE KIOSKS COST ONLY 10 TO 20 AS MUCH TO SET UP AS A FULL TACO BELL STORE AND PEPSICO HOLDS A SIGNIFICANT STAKE IN CARTS OF COLORADO INC WHICH DESIGNED AND BUILT THEM METRO EXPRESS OFFICIALS ESTIMATE THAT ABOUT 4 OF PASSERSBY WILL STOP TO SHOP WITH SOME 22000 PASSENGERS AN HOUR COURSING THROUGH THE PARK KULTURY STATION ALONE THAT WOULD YIELD ABOUT 1000 CUSTOMERS AN HOUR IN ONE STATION THE PROJECT WILL ULTIMATELY INCLUDE 17 KIOSKS IN EIGHT STATIONS OPEN 10 HOURS A DAY THE BURRITOS WERE ALREADY ADJUSTED TO RUSSIAN TASTES WHEN THE KIOSKS OPENED THE CHEESE ON THE BURRITOS IS A PREMELTED SAUCE INSTEAD OF THE SHREDDED BITS YOU GET IN LOS ANGELES IT BINDS BETTER SAYS MR NORTON THE BURRITOS ARE ALSO SMALLER AND TIDIER TRYING TO GET A PRODUCT THAT DIDN'T SQUIRT OUT WAS VERY IMPORTANT BY SETTING UP METRO EXPRESS TACO BELL ALSO GAINS TIME TO SET UP A NETWORK OF LOCAL SUPPLIERS WHICH IT HOPES TO DO IN THE NEXT SIX MONTHS AND THE METRO KIOSKS BRING MOSCOW A TASTE OF A WESTERNSTYLE FIGHT FOR BUSINESS WHILE PEPSI FOR YEARS ENJOYED A MONOPOLY HERE IN THE PAST YEAR COCACOLA CO HAS ENTERED WITH A HUGE SPLASH BRIGHT RED COKECAN SHAPED KIOSKS HAVE OPENED IN PRIME LOCATIONS AND OTHER SHOPS ARE FLOODED WITH COKE PRODUCTS THE FACT THAT WE'RE COMPETING VERY AGGRESSIVELY IS VERY GOOD FOR MOSCOW AND RUSSIA SAYS MR NORTON EARNESTLY BUT WE CAN IMAGINE HOW COKE FEELS HE ADDS WITH A BIG SMILE 9306110114 930611 REVIEW & OUTLOOK EDITORIAL ASIDES TAX SHIFT SHUFFLE MOST REPUBLICAN GOVERNORS HAVE LEARNED FROM GEORGE BUSH WHAT THE ECONOMIC AND POLITICAL COSTS OF RAISING TAXES ARE AND HAVE TAKEN THAT OPTION OFF THE TABLE BUT INSTEAD OF RETHINKING WHAT GOVERNMENT SHOULD REALLY PAY FOR MANY ARE PUSHING COMPLEX TAX SHIFTS TO IMPROVE THEIR BUSINESS CLIMATE BY LOWERING SOME TAXES WHILE RAISING OTHERS BUT VOTERS HAVE BEEN BURNED TOO MANY TIMES IN THE PAST TO BELIEVE SUCH SCHEMES ARE TRULY REVENUE NEUTRAL TWO GOP GOVERNORS HAVE SEEN TAX SHIFT PROPOSALS GO DOWN TO DEFEAT IN THE LAST WEEK MICHIGAN'S JOHN ENGLER SAW HIS PROPOSED SHIFT FROM PROPERTY TO SALES TAXES FAIL AFTER VOTERS REMEMBERED HOW THE LEGISLATURE HAD SUBVERTED PAST TAX REFORMS MONTANA'S JOHN RACICOT WANTED TO IMPOSE THE STATE'S FIRSTEVER SALES TAX WHILE HE CUT BUSINESS TAXES OVER 75 OF THE VOTERS JUST SAID NO VOTERS ARE TIRED OF GIMMICKS THEY WANT REAL ANSWERS TO WHY THEY ARE GETTING SO LITTLE VALUE FOR THEIR TAX DOLLARS UNTIL THEN THEY'LL VIEW TAX SHIFTS AS MERELY A REARRANGEMENT OF THE SHIP OF STATE'S DECK CHAIRS 9306110113 930611 LETTERS TO THE EDITOR WEAPON DESIGN LABS' HAZARDS EXAGGERATED I TAKE EXCEPTION TO THE BROAD BRUSH YOU USED IN COVERING THE SECRETARY OF ENERGY'S DECISION TO END THE EXEMPTION OF DEPARTMENT OF ENERGY FACILITIES FROM OSHA RULES DOE IS TAKING STEPS FOR OSHA TO COVER NUCLEAR LABS WORKERS MAY 6 ALTHOUGH THERE ARE NUCLEAR WEAPON MATERIALS AND COMPONENT MANUFACTURING FACILITIES THAT MAY QUALIFY TO BE AMONG THE MOST HAZARDOUS WORK SITES IN THE NATION BECAUSE OF THE PREVALENCE OF RADIOACTIVE AND OTHER WASTE TO SUGGEST THIS PROBLEM EXTENDS TO THE WEAPON DESIGN LABORATORIES DOES NOT PROPERLY DIFFERENTIATE BETWEEN THEIR RESPECTIVE ROLES IN NUCLEAR WEAPON DESIGN AND MANUFACTURE AND ASSOCIATED HAZARDS I SUSPECT YOU WOULD FIND THE CLOSEBY OIL REFINERY OPERATIONS OF THE BAY AREA TO PRESENT MORE OF A HAZARD TO THEIR WORK FORCE THAN ONE WOULD FIND AT LAWRENCE LIVERMORE NATIONAL LABORATORY 9306110112 930611 FINANCING BUSINESS COMPUSA INC COMPUSA INC DALLAS SAID IT PLANS A 110 MILLION OFFERING OF 9 1/2 SENIOR SUBORDINATED NOTES TO PAY DEBT AND FINANCE NEW STORES THE COMPUTER RETAILER SAID THE NOTES DUE IN THE YEAR 2000 ALSO WILL BE USED FOR WORKING CAPITAL AND GENERAL CORPORATE PURPOSES 9306110111 930611 LETTERS TO THE EDITOR HOTTEST LOBBY IN WASHINGTON THE STRONGEST LOBBY IN WASHINGTON IS THE WHITE HOUSE PRESS IN FIVE MONTHS ITS MEMBERS HAVE WON BACK WHITE HOUSE OFFICE ACCESS DENIED IN JANUARY CAUSED THE REINSTATEMENT OF FIVE FEDERAL EMPLOYEES WHOSE PRIMARY JOB IS TO CATER TO THE PRESS'S NEEDS EFFECTED THE REMOVAL OF THE SENIOR WHITE HOUSE OFFICIAL THEY MUST DEAL WITH RECEIVED INVITATIONS TO A BARBEQUE IN THEIR HONOR HOSTED BY THE PRESIDENT AND HIS WIFE IF THIS INDUSTRY VICTORY WERE AUTO MAKERS DOCTORS OR VIRTUALLY ANY OTHER INDUSTRY THIS SAME PRESS CORPS WOULD BE MORALLY OUTRAGED YET THE PRESS BELIEVES THESE ARE ENTITLEMENTS A LOBBYIST'S FUNCTION IS TO MAKE DENIAL OF HIS GROUP'S NEEDS SO POLITICALLY DANGEROUS THAT A PRESIDENT WILL NOT DARE DENY THEM THE WHITE HOUSE PRESS CORPS HAS RAISED SELFLOBBYING TO AN ART FORM 9306110110 930611 LETTERS TO THE EDITOR ESTATE TAXES THREATEN A LIFETIME OF WORK REGARDING YOUR MAY 21 ARTICLE INSURANCE AGENTS FIND PROFIT IN ESTATE TAX FEAR ESTATE TAXES ARE NOT A FEAR THEY ARE A FACT AND CURRENTLY RUN 55 PLUS PROBATE FEES PLUS STATE ESTATE TAXES ALL DUE NINE MONTHS AFTER DEATH INSURANCE AGENTS ARE THE MAIN CATALYSTS FOR USING INSURANCE PRODUCTS TO INDEMNIFY THIS LIABILITY FOR THIS SERVICE THY RECEIVE A LIFETIME COMMISSION OF ABOUT 1 OF THE FACE AMOUNT VS 47 PROBATE FEES ESTATE SETTLEMENT COSTS AFTER DEATH INSURANCE AGENTS PERFORM THE VALUABLE FUNCTION OF PROVIDING A GUARANTEED FUNDING MECHANISM TO PAY ESTATE TAXES NOT SUBJECT TO THE VAGARIES OF THE MARKET INSURANCE AGENTS ARE NOT COUNTING THE BODIES AFTER THE BATTLE AND CHARGING 47 PROBATE FEES BUT RATHER THEY ARE ENGAGED IN THE BATTLE TO PROTECT THE HARDWON ESTATES THAT WE SPEND A LIFETIME BUILDING UP 9306110109 930611 WHAT'S NEWS WORLDWIDE NATO OFFERED PLANES FOR BOSNIA BUT THE SCOPE OF THEIR MISSION WAS UNCLEAR FOREIGN MINISTERS OF THE WESTERN ALLIANCE AGREED IN ATHENS TO PROVIDE AIR SUPPORT FOR UN PEACEKEEPING TROOPS SECRETARY OF STATE CHRISTOPHER REAFFIRMED THAT A USLED EFFORT WOULD PROVIDE AIR PROTECTION FOR PEACEKEEPERS ANYWHERE IN BOSNIA BUT NATO SECRETARYGENERAL WOERNER SAID THE AIR COVER APPLIED ONLY TO SIX UNDESIGNATED SAFE HAVENS THE NATO MEMBERS ALSO LEFT UNRESOLVED WHETHER THE PLANES COULD BE USED TO DEFEND CIVILIANS CHRISTOPHER ANNOUNCED THAT THE US WOULD SEND 300 PEACEKEEPING TROOPS TO MACEDONIA CROAT SOLDIERS FIRED ON A PRIVATE AID CONVOY HEADED TO A MUSLIM ENCLAVE IN CENTRAL BOSNIA KILLING EIGHT CIVILIAN DRIVERS BRITISH UN PEACEKEEPERS SAID CLINTON PLANS TO WRAP UP HIS SEARCH FOR A SUPREME COURT JUSTICE BY MEETING IN WASHINGTON WITH JUDGE BREYER OF THE FEDERAL APPEALS COURT IN BOSTON ALSO IN THE RUNNING FOR THE NOMINATION IS INTERIOR SECRETARY BABBITT YELTSIN APPARENTLY ABANDONED ATTEMPTS TO RUSH THROUGH A NEW RUSSIAN CONSTITUTION ON HIS OWN TERMS BOWING TO DEMANDS FROM REGIONAL LEADERS AND CONSERVATIVES FOR A GREATER ROLE IN THE PROCESS THE PRESIDENT SUGGESTED THAT NEXT WEDNESDAY'S DEADLINE FOR A FULL ACCORD MAY NOW BE UNREALISTIC A RACKETEERING SUIT WAS FILED AGAINST FOUR ROMAN CATHOLIC BISHOPS CHARGING THEY COVERED UP A PATTERN OF ALLEGED SEXUAL ABUSE BY TWO PRIESTS THE SUIT FILED IN CAMDEN NJ BY A PRIEST AND FIVE OTHER ALLEGED VICTIMS SEEKS TO BE MADE A CLASS ACTION ON BEHALF OF OTHERS US SURGEON GENERAL NOVELLO RELEASED AN AIDS REPORT THAT INCLUDES EXPLICIT INSTRUCTIONS ON USING CONDOMS AND A NEW FOCUS ON THE DANGERS POSED FOR WOMEN THE REPORT ISSUED AT AN AIDS CONFERENCE IN BERLIN COUNSELS AGAINST INTRAVENOUS DRUG USE BUT DESCRIBES HOW TO CLEAN NEEDLES TO REDUCE THE RISK OF AIDS CLINTON SIGNED INTO LAW A MEASURE THAT PROMOTES FETAL TISSUE RESEARCH AND BANS IMMIGRANTS INFECTED WITH THE AIDS VIRUS DURING THE PRESIDENTIAL CAMPAIGN CLINTON HAD SAID HE OPPOSED THE BUSH ADMINISTRATION'S BAN ON HIVPOSITIVE IMMIGRANTS AMERICANS ARE SPLIT ON WHETHER THE NATION'S SOCIAL PROBLEMS ARE PRIMARILY THE RESULT OF DECLINING MORAL VALUES OR OF FINANCIAL PRESSURES AND STRAINS ON FAMILIES FINANCIAL PRESSURES ARE CITED BY 45 WHILE 43 BLAME A DECLINE IN MORAL VALUES ACCORDING TO A NEW WALL STREET JOURNAL/NBC NEWS POLL A HOUSE APPROPRIATIONS PANEL APPROVED A 25 BILLION PACKAGE OF ASSISTANCE FOR RUSSIA AND OTHER EXSOVIET REPUBLICS EFFORTS TO STRIP 16 BILLION FROM THE WHITE HOUSEBACKED INITIATIVE FAILED PRESIDENTIAL COUNSELOR GERGEN PLANS TO RESIGN FROM THE ALLMALE BOHEMIAN CLUB THE WHITE HOUSE SAID GERGEN'S MEMBERSHIP IN THE EXCLUSIVE CLUB HAD BEEN AN ISSUE SINCE HIS FIRST DAY ON THE JOB MONDAY WHEN HE INSISTED HE HAD NO INTENTION OF RESIGNING FORMER SEN GOLDWATER DECLARED THAT THE US MILITARY SHOULD ABOLISH ITS PROHIBITION ON HOMOSEXUALS THE 84YEAROLD CONSERVATIVE REPUBLICAN FROM ARIZONA SAID IN AN OPINION ARTICLE PUBLISHED IN THE WASHINGTON POST THAT YOU DON'T NEED TO BE STRAIGHT' TO FIGHT AND DIE FOR YOUR COUNTRY YOU JUST NEED TO SHOOT STRAIGHT A REPUTED DRUG TRAFFICKER WAS ARRESTED IN GUATEMALA IN CONNECTION WITH THE MAY 24 SLAYING OF A ROMAN CATHOLIC CARDINAL AND SIX OTHER PEOPLE IN GUADALAJARA MEXICO THE MEXICAN ATTORNEY GENERAL SAID THE SUSPECT JUAN GUZMAN HELD ON ARMS POSSESSION AND OTHER CHARGES IS BELIEVED TO HAVE BEEN THE INTENDED VICTIM IN THE SHOOTING NIGERIA'S HIGH COURT POSTPONED PRESIDENTIAL ELECTIONS THAT HAD BEEN SCHEDULED FOR TOMORROW THE ACTION CAME AFTER A GROUP OF WEALTHY MERCHANTS AND FORMER POLITICIANS APPLIED TO HAVE THE BALLOTING CANCELED CALLING FOR MILITARY PRESIDENT BABANGIDA TO STAY IN OFFICE FOUR MORE YEARS THE PRESIDENTIAL VOTE WOULD HAVE BEEN THE FIRST IN A DECADE IRAQ IS REFUSING TO ALLOW UN WEAPONS INSPECTORS TO INSTALL SURVEILLANCE CAMERAS AT MISSILE TEST SITES A SPOKESMAN FOR THE WORLD BODY SAID THE IRAQIS SAID THEY WILL PERMIT ONLY INSPECTIONS NOT MONITORING IN DEFIANCE OF SECURITY COUNCIL RESOLUTIONS 9306110108 930611 LETTERS TO THE EDITOR FEAR OF GENECLONING THE ARTICLES IN YOUR TECHNOLOGY REPORT MAY 24 LACKED INSIGHT INTO A BLOCKBUSTER AREA OF HIGHTECHNOLOGY NAMELY BIOTECHNOLOGY LITTLE MENTION WAS MADE OF RECOMBINANT DNA OR GENECLONING TECHNOLOGY OUR CURRENT ABILITIES TO DISSECT AND RECOMBINE OUR GENETIC HERITAGE COME FROM THE GENIUS AND INSIGHT OF A CADRE OF SCIENTISTS THEIR CONTRIBUTIONS ALBEIT LESS KNOWN THAN COMPUTER PRODUCTS AFFECT OUR LIVES WITH NEW PHARMACEUTICAL AND AGRICULTURAL PRODUCTS EDUCATING OUR PUBLIC IN THE BIOTECHNOLOGY AREA WILL HELP REMOVE THE FEAR OF THE MAD SCIENTIST AND RECOMBINANTDNAPRODUCED NEW PRODUCTS 9306110107 930611 LETTERS TO THE EDITOR INFANT FORMULA VS BREAST FEEDING YOU WERE RIGHT ON TARGET WITH SPILT MILK METHODS OF MARKETING INFANT FORMULA PAGE ONE MAY 25 FOR THE ENTIRE 15 YEARS I'VE BEEN WRITING ABOUT WOMEN'S HEALTH ISSUES THE REPUTATION OF THE ACADEMY OF PEDIATRICS HAS BEEN TAINTED BECAUSE OF THE FORMULA COMPANY REVENUE THEY RECEIVE ALL THE WHILE GIVING LIP SERVICE TO BREAST FEEDING IF DIRECT ADVERTISING TO CONSUMERS OF SYNTHETIC MILK PRODUCTS DIMINISHES BREAST FEEDING IT WOULD BE ONLY ONE OF MANY SUCH STUMBLING BLOCKS USED BY HOSPITALS AND DOCTORS FREE FORMULA SAMPLES TO NEW MOTHERS IN THE HOSPITAL AND LONGTERM LOUSY BREASTFEEDING ADVICE BY MANY PEDIATRICIANS ARE AT THE TOP OF THE LIST 9306110106 930611 PEPPERAND SALT IN MULTIPURPOSE TRANSITIONS TO SPIN OFF WHAT THEY HAVE ACQUIRED BUT WE CALLED IT MACARONI NEGATIVE CAMPAIGNERS BRUISEHOUNDS 9306110105 930611 LANG COMPLETES RECAPITALIZATION NEW YORK LANG COMMUNICATIONS INC COMPLETED ITS RECAPITALIZATION PLAN AND NATIONAL WESTMINSTER BANK USA SAID IT WILL GIVE THE COMPANY A NEW CREDIT LINE AND REFINANCE ITS LONGTERM DEBT AS PART OF THE RECAPITALIZATION SANDLER MEDIA GROUP INC OF NEW YORK PROVIDED THE PRIVATELY HELD COMPANY WITH A CAPITAL INFUSION WHICH IT DIDN'T SPECIFY IT WILL BE USED TO FINANCE LANG'S BUYOUT OF TIME WARNER INC'S 50 JOINTVENTURE INTEREST IN WORKING WOMAN AND WORKING MOTHER MAGAZINES AND TO SUPPORT TWO OTHER LANG MAGAZINES MS AND SASSY 9306110104 930611 DECISION NEARS ON A NOMINEE FOR HIGH COURT BABBITT IS STILL IN RUNNING BUT BREYER IS GETTING WHITE HOUSE ATTENTION BY JEFFREY H BIRNBAUM AND PAUL M BARRETT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON PLANS TO PUT THE FINISHING TOUCHES ON HIS TORTUOUS SEARCH FOR A SUPREME COURT JUSTICE BY MEETING WITH STEPHEN BREYER THE CHIEF JUDGE OF THE FEDERAL APPEALS COURT IN BOSTON JUDGE BREYER WHO HAS BEEN HOSPITALIZED AFTER A BICYCLE ACCIDENT IS EXPECTED TO TRAVEL TO WASHINGTON TODAY OR OVER THE WEEKEND FOR A MEETING AT THE WHITE HOUSE TO BE SURE INTERIOR SECRETARY BRUCE BABBITT IS STILL IN THE RUNNING AND WHITE HOUSE AIDES COULD ONLY GUESS WHOM MR CLINTON WOULD PICK THEY ASSERTED ONLY ONE THING FIRMLY A DECISION WHICH HAS BEEN NEARLY THREE MONTHS IN THE MAKING IS FINALLY IMMINENT BUT IF MR CLINTON DOES CHOOSE JUDGE BREYER THERE WILL BE SOME BRUISED FEELINGS SUPPORTERS OF MR BABBITT ARE ENRAGED OVER THE WAY MR CLINTON EXPOSED THE HIGHLY RESPECTED FORMER GOVERNOR OF ARIZONA TO UNFLATTERING COMMENTARY IN THE PRESS AND THEN DIDN'T PUBLICLY DEFEND HIM AND MAY EVEN PASS HIM OVER FOR THE NOMINATION CRITICS ON CAPITOL HILL HAVE COME TO SEE SUCH DISREGARD FOR THE EFFECT OF DELAY ON SENSITIVE APPOINTMENTS AS A DISTURBING TRAIT OF MR CLINTON THE PRESIDENT ALSO DAWDLED BEFORE WITHDRAWING THE NOMINATION OF LANI GUINIER TO BE ASSISTANT ATTORNEY GENERAL IN THE PAST FEW DAYS JUDGE BREYER HAS BEEN THE FOCUS OF THE WHITE HOUSE'S ATTENTION HE MET IN HIS CAMBRIDGE MASS HOSPITAL ROOM WITH WHITE HOUSE STAFFERS TO COMPLETE BACKGROUND CHECKS SENATORS ALSO WERE THOROUGHLY QUIZZED ABOUT HIM AND HIS PROSPECTS FOR CONFIRMATION BOTH DEMOCRATS AND REPUBLICANS TOLD THE PRESIDENT AND HIS STAFF THAT JUDGE BREYER A FORMER SENATE STAFFER WOULD BE CONFIRMED OVERWHELMINGLY AT THE SAME TIME WHITE HOUSE OFFICIALS HAVE DISCLOSED THAT THE PRESIDENT IS FEELING UNEASY ABOUT REMOVING MR BABBITT FROM THE CABINET THE INTERIOR SECRETARY IS CONSIDERED ONE OF THE CABINET'S STARS ABLE TO BALANCE THE COMPETING INTERESTS THAT SPAR OVER HIS AGENCY'S MANY LAND AND ENVIRONMENTAL ISSUES THESE WORRIES WERE AMPLIFIED BY PLEAS TO THE PRESIDENT HIMSELF BY WESTERN STATE LAWMAKERS WHO ATTENDED A WHITE HOUSE BARBECUE TUESDAY EVENING REPUBLICANS ALSO HAVE TRIED TO CLOUD MR BABBITT'S CHANCES BY SAYING THEY PREFER A JURIST OVER A POLITICIAN IN THE POST THE SEARCH FOR A JUSTICE STARTED IN MARCH WHEN JUSTICE BYRON WHITE ANNOUNCED THAT HE WOULD RETIRE AT THE END OF THE COURT'S TERM THIS SUMMER SINCE THEN MR CLINTON HAS GONE THROUGH A VARIETY OF PHASES HE WAS INITIALLY INTERESTED IN DEMOCRATIC GOV MARIO CUOMO BUT THE NEW YORKER SAID NO EDUCATION SECRETARY RICHARD RILEY A FORMER SOUTH CAROLINA GOVERNOR ALSO WAS APPROACHED BUT DECIDED TO REMAIN A POLITICIAN ALONG THE WAY A RANGE OF BOTH MALE AND FEMALE JUDGES ON STATE AND FEDERAL BENCHES WERE CONSIDERED LAST WEEKEND MR CLINTON TOLD HIS STAFF HE WAS INCLINED TO CHOOSE MR BABBITT THE 54YEAROLD MR BABBITT FIT THE PRESIDENT'S CRITERIA HE WAS A PERSON OF NATIONAL STATURE AND POLITICAL ACUMEN WHO MR CLINTON BELIEVED COULD BECOME A LEADER ON THE COURT IN THE TRADITION OF EARL WARREN A FORMER GOVERNOR OF CALIFORNIA WHEN WORD LEAKED OUT ENVIRONMENTAL GROUPS REBELLED ASSERTING THEY COULDN'T DO WITHOUT SO STRONG AN ADVOCATE IN THE AGENCY MR CLINTON MUSED ALOUD ABOUT THIS COMPLAINT SYMPATHETICALLY AND HIS STAFF RELAYED THE COMMENT TO REPORTERS FOR HIS PART MR BABBITT IS SAID TO WANT THE JOB AND SOME OF HIS BACKERS WERE EAGER TO FIND A WAY TO PROMOTE HIM STILL SIGNS ABOUNDED THAT HIS CHANCES WERE WANING LIBERAL GROUPS WERE SCRAMBLING TO ASSEMBLE AND ANALYZE JUDGE BREYER'S LAW REVIEW ARTICLES MANY OF WHICH EXPRESS SKEPTICISM OF GOVERNMENT REGULATION OF BUSINESS AS A STAFF MEMBER TO SEN EDWARD KENNEDY D MASS IN THE 1970S JUDGE BREYER WAS A MAJOR FORCE BEHIND DEREGULATION OF THE AIRLINE INDUSTRY HE IS ALSO WELL KNOWN FOR HIS CONSERVATIVE VIEWS ON ANTITRUST LAW ALTHOUGH LIBERALS ARE CONCERNED ABOUT JUDGE BREYER'S POSITIONS ON ECONOMIC ISSUES THEY DON'T PLAN TO OPPOSE HIS NOMINATION 9306110103 930611 WHO'S NEWS TIMES MIRROR CO TIMES MIRROR CO LOS ANGELES THIS PUBLISHING AND INFORMATION COMPANY PARENT OF THE LOS ANGELES TIMES SAID IT NAMED TIM HAILSTONE PRESIDENT OF A NEW INTERNATIONAL PUBLISHING ARM CALLED TIMES MIRROR INTERNATIONAL PUBLISHING MR HAILSTONE IS CURRENTLY EXECUTIVE VICE PRESIDENT INTERNATIONAL PUBLISHING FOR TIMES MIRROR'S MOSBYYEAR BOOK MOSBYYEAR BOOK AND CRC PRESS MEDICAL AND SCIENTIFIC PUBLISHERS AND RICHARD D IRWIN INC AND WM C BROWN COMMUNICATIONS INC COLLEGE PUBLISHERS WILL BE FOLDED INTO THE NEW INTERNATIONAL UNIT THE UNIT WILL ASSUME RESPONSIBILITY FOR TIMES MIRROR'S EXISTING BOOKPUBLISHING OPERATIONS IN TORONTO LONDON MADRID AND MEXICO CITY AS WELL AS ITS JOINT VENTURES IN BERLIN TOKYO AND SYDNEY AUSTRALIA 9306110102 930611 TARGETS WON'T OPEN JAPANESE MARKETS BY CARLA A HILLS A CURIOUS THING HAPPENED IN TOKYO LAST WEEK US SEMICONDUCTOR MAKERS ANNOUNCED THAT THEY DID NOT FAVOR SETTING NEW TARGETS FOR THE FOREIGN SHARE OF THE JAPANESE SEMICONDUCTOR MARKET THIS IS THE SAME INDUSTRY THAT INSISTED THAT A 20 TARGET BE WRITTEN INTO THE 1986 AND 1991 BILATERAL SEMICONDUCTOR AGREEMENTS COULD IT BE THAT THE MAKERS OF SEMICONDUCTORS RECOGNIZED THAT ATTEMPTS TO MANAGE TRADE WITH JAPAN BY SETTING NUMERICAL TARGETS MERELY CAP WHAT US COMPANIES CAN ACHIEVE CLEARLY US SEMICONDUCTOR MANUFACTURERS COULD WIN MORE THAN A 20 SHARE IF THE JAPANESE MARKET WERE TRULY OPEN IN HEADTOHEAD COMPETITION WITH JAPANESE SUPPLIERS US CHIP MAKERS HOLD MORE THAN 47 OF THE EUROPEAN MARKET AND 56 OF THE GLOBAL MARKET OUTSIDE JAPAN THE SEMICONDUCTOR EXAMPLE IS TIMELY BECAUSE THE 20 TARGET IN THE AGREEMENT HAS BEEN CITED BY MANY IN AND OUT OF THE CLINTON ADMINISTRATION AS A POSITIVE EXAMPLE OF RESULTSORIENTED TRADE POLICY THEY URGE THAT FUTURE AGREEMENTS WITH JAPAN COVERING SPECIFIC INDUSTRIAL SECTORS CONTAIN EXPLICIT NUMERICAL TARGETS I DISAGREE THE 1991 AGREEMENT WHICH I NEGOTIATED CONTAINED MUCH MORE THAN SIMPLY A NUMBER IT HAD A DOZEN INDICATORS TO DETERMINE WHETHER THE JAPANESE MARKET WAS OPENING A NEGOTIATED TARGET IS BY ITS VERY NATURE A COMPROMISE IT IS ALWAYS LOWER THAN WHAT US EXPORTERS COULD ACHIEVE WERE THE MARKET OPEN AND EVEN THOUGH THE 20 EXPECTATION IN THE 1991 AGREEMENT IS EXPLICITLY TERMED NOT A FLOOR NOR A CEILING NOR A GUARANTEED MARKET SHARE FEW JAPANESE COMPANIES ARE BUYING MORE THAN THE EXPECTED 20 NONE ARE BUYING IN THE COMPETITIVE 47 TO 56 RANGE US AND JAPANESE TRADE OFFICIALS ARE SCHEDULED TO MEET TODAY IN WASHINGTON WITH THE GOAL OF ARRIVING AT A NEW FRAMEWORK FOR THE BILATERAL TRADE RELATIONSHIP ON MONDAY AMERICAN OFFICIALS TOLD THE PRESS THAT THEY WOULD BE SEEKING NUMERICAL TARGETS TO REIN IN JAPAN'S RAPIDLY ESCALATING 132 BILLION TRADE SURPLUS AND TO OPEN THOSE SECTORS WHERE US ENTREPRENEURS DO NOT HAVE THE SAME ACCESS TO THE JAPANESE MARKET AS JAPANESE ENTREPRENEURS ENJOY HERE HOWEVER THEY SAID THAT THERE WOULD NOT BE AUTOMATIC RETALIATION IF JAPAN FAILED TO MEET THE TARGETS SET ON TUESDAY AT A PRESS CONFERENCE IN TOKYO FOREIGN MINISTER KABUN MUTO STATED UNEQUIVOCALLY THAT JAPAN COULD NOT AGREE TO NUMERICAL TARGETS TO SAY THAT JAPAN SHOULD CUT ITS GLOBAL SURPLUS IS LIKE TELLING AN OBESE HEART PATIENT HE SHOULD LOSE WEIGHT NONE WOULD DISAGREE THE US TOO IS LARDED WITH AN UNACCEPTABLE DEFICIT BOTH OF US MUST TRIM DOWN BUT LET'S NOT LOSE SIGHT OF THE FACT THAT IF JAPAN'S CURRENT ACCOUNT WERE IN BALANCE THE US WOULD STILL HAVE SERIOUS PROBLEMS WITH ITS DENIAL OF MARKET ACCESS THE US HAS A SURPLUS WITH EUROPE BUT WE ARE BARRED FROM THE EUROPEAN TELECOMMUNICATIONS MARKET WE WILL MAKE OUR NATION MORE PROSPEROUS AND CREATE MORE JOBS ONLY BY OPENING MORE OPPORTUNITIES FOR OUR ENTREPRENEURS TO COMPETE NOT BY AGREEING TO MARKET SHARES THE PROVEN FORMULA FOR UNLOCKING THE JAPANESE MARKET IS SOLID ANALYSIS AND FIRM FOCUSED AND UNFLAGGING ATTENTION BOTH BY OUR TRADE NEGOTIATORS AND BY OUR ENTREPRENEURS HISTORY SHOWS THAT THIS FORMULA ACHIEVES RESULTS BETWEEN 1989 AND 1992 THE US ENTERED INTO 13 SEPARATE AGREEMENTS WITH JAPAN INCLUDING THE SEMICONDUCTOR AGREEMENT CREATING MORE THAN 100 BILLION IN NEW OPPORTUNITIES FOR US EXPORTERS IN SECTORS AS DIVERSE AS COMPUTERS AND PAPER SATELLITES AND WOOD PRODUCTS DIGITAL EQUIPMENT AND AMORPHOUS METALS THE US ALSO LAUNCHED THE STRUCTURAL IMPEDIMENTS INITIATIVE AIMED AT REMOVING UNDERLYING BARRIERS TO FREE TRADE AND INVESTMENT THIS INITIATIVE HAS OPENED OPPORTUNITIES FOR US RETAILERS SHORTENED THE TIME US INVENTORS MUST WAIT BEFORE OBTAINING A JAPANESE PATENT SPED UP CUSTOMS PROCESSING AT JAPANESE PORTS AND STRENGTHENED JAPAN'S ANTITRUST ENFORCEMENT THE REMOVAL OF THESE RESTRICTIONS CUT ACROSS ALL INDUSTRIAL SECTORS IN 1988 IN THE GENERAL AGREEMENT ON TARIFFS AND TRADE THE US WON A CASE AGAINST JAPANESE AGRICULTURAL RESTRICTIONS THAT OPENED GOOD MARKETS FOR US PRODUCERS OF BEEF AND CITRUS IN COMBINATION THESE INITIATIVES RESULTED IN A 30 RISE IN US EXPORTS TO JAPAN SINCE 198945 IN THE CRITICAL MANUFACTURING SECTOR IN THE 13 AREAS COVERED BY SECTORAL AGREEMENTS US EXPORTS JUMPED 57 ABOUT TWICE AS FAST AS OUR EXPORTS TO JAPAN OVERALL AS THE ADMINISTRATION PURSUES A NEW FRAMEWORK HERE ARE SOME SUGGESTIONS COOL THE RHETORIC PUBLIC DIPLOMACY TO BE EFFECTIVE NEEDS TO BE DIPLOMATIC LECTURING THE JAPANESE PRIME MINISTER AS PRESIDENT CLINTON WAS SEEN DOING ON WORLDWIDE TELEVISION AT THE CLOSE OF THEIR FIRST WHITE HOUSE MEETING THIS SPRING WAS RESENTED IN JAPAN THERE IS NO GAIN IN ENCOURAGING JAPANESE OFFICIALS TO STIFFEN THEIR SPINES IN RESPONSE TO PERCEIVED SLIGHTS DIVERSIFY THE EFFORT OPENING MARKETS REQUIRES THE FULL RANGE OF NEGOTIATING TOOLS MULTILATERAL BILATERAL AND WHEN ALL ELSE FAILS UNILATERAL SCRUTINIZE PROGRESS BUT DON'T SET ARBITRARY TARGETS MONITOR ADHERENCE TO AGREEMENTS CLOSELY ASSESS PROGRESS IN OPENING THE JAPANESE MARKET AND ADJUST THE MECHANISM AS NECESSARY TO IMPROVE MARKET ACCESS NUMERICAL INDICATORS SUCH AS CHANGES IN MARKET SHARE RATES OF GROWTH IN JAPANESE IMPORTS CHANGES IN RELATIVE PRICE LEVELS ARE FINE BUT THEY ARE VERY DIFFERENT FROM FIXED TARGETS WHICH TEND TO RESTRICT OUR OPPORTUNITIES OUR RELATIONSHIP WITH JAPAN HAS SOURED IN RECENT MONTHS TO NEITHER SIDE'S BENEFIT PUBLIC POSTURING AGAINST JAPAN MUST NOT TAKE PRECEDENCE OVER THE DEVELOPMENT OF A FIRM AND CONSTRUCTIVE DIALOGUE WITH JAPANESE LEADERS JAPAN IS THE WORLD'S SECONDLARGEST ECONOMY TOGETHER WE SHARE MANY VITAL TRADE FINANCIAL AND GEOPOLITICAL INTERESTS THE US AND JAPAN ARE CRITICAL ALLIES ON A LONG LIST OF MATTERS SUCH AS CHINA CAMBODIA AND NORTH KOREA AND ON THE MATTER OF ASSISTANCE FOR THE FRAGILE NEWLY INDEPENDENT STATES OF THE FORMER SOVIET UNION PRESIDENT CLINTON WILL BE IN JAPAN NEXT MONTH FOR THE G7 SUMMIT HIS VISIT OFFERS HIM THE OPPORTUNITY TO FORGE A STRONGER ECONOMIC AND POLITICAL PARTNERSHIP WITH JAPAN THIS IS FAR MORE CONSTRUCTIVE THAN DEBATING THE VALUE OF NUMERICAL TARGETS MRS HILLS US TRADE REPRESENTATIVE FROM 1989 TO 1993 NOW HEADS AN INTERNATIONAL CONSULTING FIRM THAT ADVISES US CLIENTS ON TRADE AND INVESTMENT IN FOREIGN MARKETS 9306110101 930611 POTOMAC WATCH HIGH COURT RACE BREYER THE JUDGE OR BABBITT THE POL BY PAUL A GIGOT IN THE FAMOUS STORY A COLLEAGUE ONCE SAID GOODBYE TO JUSTICE OLIVER WENDELL HOLMES BY URGING DO JUSTICE SIR DO JUSTICE HOLMES REPLIED THAT IS NOT MY JOB IT IS MY JOB TO APPLY THE LAW PRESIDENT CLINTON'S TWO APPARENT FINALISTS FOR THE SUPREME COURT OFFER SOMETHING LIKE THAT CLASSIC CHOICE THE LEGAL RIGOR OF HOLMES OR THE OPENENDED JUSTICE OF A POLITICAL JURIST HIS CHOICE WILL SAY A LOT ABOUT HIS MOVE TO THE CENTER THE HOLMESIAN IS APPELLATE COURT JUDGE STEPHEN BREYER A DEMOCRAT ADMIRED BY MANY REPUBLICANS JUDGE BREYER SAYS UTAH REPUBLICAN ORRIN HATCH WOULD SAIL THROUGH THE SENATE 1000 I'D BET THE POLITICAL CHOICE IS BRUCE BABBITT THE INTERIOR SECRETARY AND FORMER ARIZONA GOVERNOR WHO WOULD BE A LUNGE IN THE DARK MR BABBITT MIGHT BE CONFIRMED BUT NOT WITHOUT ROUGH SENATE SCRUTINY IF THIS SEEMS AN EASY CALL REMEMBER THIS IS BILL CLINTON EASY IS NOT IN HIS DICTIONARY JUSTICE BYRON WHITE ANNOUNCED HIS RESIGNATION WAY BACK IN MARCH JUDGE BREYER HAS BEEN KNOWN TO THE WHITE HOUSE ALL ALONG YET MR CLINTON HAS HEMMED HAWED AND FRETTED OVER A HOST OF OTHER MORE POLITICAL AND LIBERAL NAMES FIRST WAS NEW YORK GOV MARIO CUOMO WHO TURNED HIM DOWN NEXT WAS JON NEWMAN A JUDGE WHO SHOWED HIS COLORS BY CAMPAIGNING AGAINST CLARENCE THOMAS THEN CAME GILBERT MERRITT ANOTHER JUDGE WHO RAISED DOUBTS ONCE WORD SPREAD ABOUT HIS POLITICS HIS REFLECTIONS FOR HIS 25TH YALE REUNION IN THE 1980S BEGAN I AM CONCERNED THAT THE REACTIONARY PERIOD WE ARE GOING THROUGH WILL BE HARMFUL TO COUNTRY NOW COMES MR BABBITT THE MOST STARTLING NAME OF ALL HE HAS NO EXPERIENCE AS A JUDGE AND LESS LEGAL EXPERIENCE THAN CLARENCE THOMAS WHO WAS CRITICIZED BY LIBERALS FOR LACK OF EXPERIENCE WHAT HE DOES HAVE IS POLITICAL SKILL AND A REPUTATION AS A MODERATE IN HIS 1988 PRESIDENTIAL BID HE RAN AS A DEMOCRAT AHEAD OF HIS TIME BY FORESHADOWING MR CLINTON'S 1992 THEMES ONE SUSPICION IS THAT MR CLINTON WANTS A POL IN HIS OWN IMAGE TO SCHMOOZE THE SUPREME COURT'S MALLEABLE MIDDLE OF JUSTICES SANDRA DAY O'CONNOR DAVID SOUTER AND ANTHONY KENNEDY INTO UNITING WITH THE LEFT JUSTICES JOHN PAUL STEVENS AND HARRY BLACKMUN HIS SPECIAL TARGET IS THOUGHT TO BE JUSTICE O'CONNOR WHO WAS APPOINTED TO THE ARIZONA BENCH BY THENGOV BABBITT THIS IS PROBABLY A FORLORN HOPE BUT IT'S STILL DISTURBING BECAUSE IT SUGGESTS THAT MR CLINTON SEES THE COURT LESS AS A JUDICIAL BODY THAN AS JUST ANOTHER POLITICAL INSTITUTION HE SEEMS TO THINK A POLITICAL MODERATE IS THE SAME AS A JUDICIAL MODERATE RECENT GOP PRESIDENTS HAVE CHOSEN SITTING JUDGES BECAUSE THEY HAVE SOME RECORDED PHILOSOPHY OF JUDGING BUT POLITICIANS ARE THE ULTIMATE WILD CARDS FDR CHOSE HUGO BLACK A SENATOR WHO BECAME THE ONLY JUSTICE IN HISTORY WITH AN ABSOLUTIST VIEW OF THE FIRST AMENDMENT AND EISENHOWER REGRETTED HIS CHOICE OF EARL WARREN A GOVERNOR WHO MADE THE COURT A DE FACTO LEGISLATURE MR BABBITT HAS GIVEN HINTS THAT HE'S OF THE WARREN SCHOOL ATTACKING ROBERT BORK IN A 1987 SPEECH ACCORDING TO THE WASHINGTON POST HE SAID THAT THE JOB OF A JUSTICE IS JUSTICE THAT MEANS SEARCHING DEEPLY INTO THE ASPIRATIONS OF OUR CONSTITUTION AS HOLMES KNEW THIS IS BOILERPLATE FOR READING WHATEVER ONE LIKES INTO THE CONSTITUTION MORE REVEALING YET MR BABBITT SEEMS TO HAVE CASHIERED A LEGAL OPINION HE DIDN'T LIKE AT INTERIOR LAST JULY THE WESTERN REGION OF THE NATIONAL PARK SERVICE MOVED TO INCLUDE SEXUAL ORIENTATION IN ITS AFFIRMATIVEACTION POLICY A MEMO WAS DRAFTED TO BAN BOY SCOUT VOLUNTEERS FROM THE PARKS BECAUSE THE SCOUTS BAR GAY SCOUTMASTERS ON JAN 19 OF THIS YEAR ASSISTANT SECRETARY JOHN SCHROTE A BUSH APPOINTEE REVOKED THAT POLICY CHANGE HE SAID THE INTERIOR DEPARTMENT'S SOLICITOR AND THE WEIGHT OF JUDICIAL DECISIONS SHOW THAT CONGRESS EXPRESSLY DID NOT INCLUDE GAYS UNDER THE CIVIL RIGHTS ACT OF 1964 THIS IS A MATTER THAT MUST BE LEFT TO CONGRESSIONAL ACTION RATHER THAN ADMINISTRATIVE FIAT MR SCHROTE WROTE BUT ON JAN 28 MR BABBITT WAS QUOTED IN THE SAN FRANCISCO EXAMINER AS SAYING HE WAS INCLINED TO THE VIEW THAT WE SHOULD CONSIDER RESCINDING THE SCHROTE DIRECTIVE AND RESTORING THE WESTERN POLICY ON FEB 16 MR BABBITT'S ACTING ASSISTANT SECRETARY BRAD LEONARD ISSUED A MEMO DOING EXACTLY THAT A SPOKESMAN SAYS MR BABBITT WOULD NEVER BAN THE BOY SCOUTS AND I AGREE HE WOULDN'T BE THAT STUPID BUT THE BIGGER ISSUE FOR SOMEONE ASPIRING TO THE SUPREME COURT IS HOW MR BABBITT COULD JUSTIFY OVERRULING A DECISION CLEARLY BASED ON LAW AND THE INTENT OF CONGRESS DID HE FIRST GET ANOTHER LEGAL OPINION AND IF GAYS ARE ALREADY COVERED UNDER THE CIVILRIGHTS LAWS WHY ARE THERE BILLS NOW IN CONGRESS TO INCLUDE SUCH COVERAGE THE EPISODE SUGGESTS A JUSTICE BABBITT WOULD LET HIS OWN PREFERENCES OVERRULE LEGISLATURES MR BREYER BY CONTRAST IS DESCRIBED BY ONE NOTED JUDGE AS A LIBERAL BUT A GOOD SOUND JUDGE IN THE OLD HARVARD TRADITION OF JUDICIAL RESTRAINT A LA FELIX FRANKFURTER MR BREYER WAS THE LAST CARTER APPOINTEE CONFIRMED BY THE SENATE CONFIRMED EVEN AFTER THE 1980 ELECTION BECAUSE OF HIS BIPARTISAN SUPPORT FOR A PRESIDENT WHO NEEDS A VICTORY THIS CHOICE REALLY IS EASY 9306110100 930611 LEISURE & ARTS THE GALLERY MANSION SITE ENLARGED RENOVATED BY DEBORAH SOLOMON THE JEWISH MUSEUM WILL REOPEN HERE THIS SUNDAY AFTER TWOANDAHALF YEARS NEWLY RENOVATED AND EXPANDED THE 36 MILLION REDESIGN IS THE WORK OF THE ARCHITECT KEVIN ROCHE WHO CONCEIVED THE CHILLY MASTER PLAN OF THE NEARBY METROPOLITAN MUSEUM BUT WHO HAS SETTLED FOR A MORE INTIMATE FEELING THIS TIME IN TRANSFORMING THE FORMER FIFTH AVENUE MANSION OF THE BANKER FELIX WARBURG THAT HAS HOUSED THE MUSEUM SINCE 1947 MR ROCHE OPTED TO DOUBLE ITS SIZE WHILE RETAINING ITS AMBIANCE OF OLDWORLD GENTILITY MR ROCHE'S EXPANSION IS RADICAL IN ITS CONSERVATISM INSIDE SOME OF THE NEW GALLERIES ACTUALLY CONTAIN FRENCH GOTHIC COLUMNS AND ORNATE WALL MOLDINGS THAT DUPLICATE THE DETAILS OF THE ORIGINAL BUILDING OUTSIDE THE LIMESTONE FACADE OF THE 1908 BUILDING HAS BEEN EXTENDED UPTOWN TO CREATE THE ILLUSION OF A BIG CHATEAU WITH NO MODERN TRIMMINGS IS THIS AN IMPROVEMENT PERSONALLY I MISS THE OLD FIFTH AVENUE ENTRANCE WITH ITS SLEEK '60SSTYLE STAIRWAY AND SCULPTURE COURT THAT ENCOURAGED LINGERING FOR MANY OF US THE WIDE STONE STEPS AND COZY PLAZA BECAME THE ONE IMAGE ASSOCIATED INDELIBLY WITH THE MUSEUM BUT THAT'S BEEN DEMOLISHED AND NOW WE ENTER THE MUSEUM AROUND THE CORNER ON 92ND STREET THROUGH THE WARBURGS'S DISCREET ARCHED DOORWAY IT'S ALL VERY TASTEFUL AND A BIT DULL SURELY THERE'S A MIDDLE GROUND BETWEEN SLAVISHLY IMITATING HISTORICAL STYLES AS THE JEWISH MUSEUM HAS NOW DONE AND IRONICALLY APPROPRIATING THEM FOR A POSTMODERN JOKE A CULTURE SUSTAINS ITSELF BY REINVIGORATING THE PAST THE NEW ADDITION TO THE JEWISH MUSEUM MERELY REHASHES IT STILL MR ROCHE'S ADDITION WELL SERVES THE INTERESTS OF THE MUSEUM BY ADDING SOME 40000 SQUARE FEET TO THE PREMISES MUCH OF THE NEW SPACE HAS BEEN TURNED OVER TO A PERMANENT COLLECTION THAT HAD PREVIOUSLY BEEN DISPLAYED ONLY IN BITS AND PIECES AND HAS NOW BEEN ARRANGED TO FORM A MORE COMPLETE CHRONICLE OF JEWISH CULTURE THIS NEW CORE DISPLAY WHICH OCCUPIES TWO UPPER FLOORS OF THE MUSEUM SEEMS GEARED MORE TOWARD EDUCATION THAN AESTHETICS THUS A WIDE RANGE OF INSPIRED OBJECTS FROM SEDER PLATES AND MENORAHS TO THE MOSAIC WALL OF A PERSIAN SYNAGOGUE ARE EXHIBITED AMONG SUCH DISTINCTLY '90S CREATIONS AS A VIDEO SCREEN THAT ALLOWS THE VISITOR TO DISCOURSE ON TALMUDIC QUESTIONS WITH ELECTRONIC RABBIS THE REINSTALLATION OF THE PERMANENT COLLECTION COMES AT AN OPPORTUNE TIME WITH THE RECENT OPENING OF THE UNITED STATES HOLOCAUST MEMORIAL MUSEUM IN WASHINGTON DC AND PLANS FOR SIMILAR MEMORIALS ELSEWHERE WE'RE WITNESSING THE DISTURBING RISE OF WHAT MIGHT BE CALLED HOLOCAUST CHIC IT'S FASHIONABLE NOW TO GAB ABOUT GENOCIDE AND THE PROBLEM IS THAT JEWS COULD BECOME KNOWN PRIMARILY AS VICTIMS OF AGGRESSION PEOPLE WHO KNOW NOTHING ABOUT PASSOVER WILL KNOW EVERYTHING ABOUT POGROMS PEOPLE WHO KNOW NOTHING ABOUT THE LIFE OF THE JEWS WILL KNOW EVERYTHING ABOUT THEIR DESTRUCTION YET THE JEWISH MUSEUM STANDS APART BECAUSE IT IS DEVOTED TO THE HISTORY OF LIFE NOT THE HISTORY OF DEATH IT REMINDS US THAT A CULTURE THAT WAS NEARLY WIPED OUT OVERNIGHT TOOK SOME 4000 YEARS TO CREATE WHILE THE MUSEUM SEEMS NEWLY COMMITTED TO ELUCIDATING JEWISH HISTORY ITS STANCE ON ART IS LESS CLEAR A MUSEUM THAT IS DEVOTED TO BOTH JUDAISM AND ART RUNS THE RISK OF BEING DEVOTED TO NEITHER AND FOR NOW THE ART HALF SUFFERS THE MUSEUM'S SECOND FLOOR IS CURRENTLY TURNED OVER TO RECENT ACQUISITIONS A HIGHLY UNEVEN LOT ON THE PLUS SIDE THERE'S CHAIM SOUTINE'S BELL BOY 1928 A MESMERIZING PORTRAIT OF A YOUNG MAN HIS FIERY RED UNIFORM FLARING AGAINST A DARK BACKGROUND AS IF IN DEFIANCE OF HIS LOWLY FATE AND LUCIAN FREUD'S SMALL ETCHING LORD GOODMAN IN HIS YELLOW PAJAMAS 1987 DEPICTS THE BRITISH FINANCIER LOOKING OMNIPOTENT EVEN AT BEDTIME WITH HEAVY JOWLS AND DEFIANT NOSTRILS SUCH FIRSTRATE WORKS ARE INTERMINGLED IN THE MUSEUM'S GALLERIES WITH INNUMERABLE LESSER EFFORTS THE GREEKSTYLE FIGURE STUDIES OF ABRAHAM WALKOWITZ AND THE SOFT BLOTCHY NUDES OF JULES PASCIN WERE FASHIONABLE BEFORE THE SECOND WORLD WAR BUT HAVE SINCE COME TO LOOK DATED THEIR INCLUSION HERE AS WELL AS THE SEEMINGLY ENDLESS STRING OF FOLKSY FLOATING FIGURES BY CHAGALL DILUTES THE EFFECT OF EVERYTHING ELSE THERE WAS A TIME WHEN THE MUSEUM WAS KNOWN FOR PROMOTING ADVANCED TASTE MANY PEOPLE STILL REMEMBER THE PIONEERING SHOWS ORGANIZED IN THE '60S BY FORMER DIRECTOR ALAN SOLOMON HIS 1963 RETROSPECTIVE OF THE WORK OF ROBERT RAUSCHENBERG AND HIS EQUALLY INFLUENTIAL SHOW ON JASPER JOHNS THE FOLLOWING YEAR WERE LANDMARK EXHIBITIONS GUARANTEEING THAT ONE COULD NO LONGER DISMISS THE MUSEUM AS A DUSTY REPOSITORY FOR RELIGIOUS OBJECTS THE NEW JEWISH MUSEUM HOPES TO REESTABLISH ITSELF AS A FORCE ON THE CURRENT ART SCENE OR SO ONE MIGHT CONCLUDE AFTER SEEING THE TRENDFEST NOW INSTALLED ON THE GROUND FLOOR ENTITLED FROM THE INSIDE OUT EIGHT CONTEMPORARY ARTISTS THE SHOW BRINGS TOGETHER A GROUP OF INTERNATIONAL ART STARS WHOSE WORK IS IN KEEPING WITH THE CURRENT VOGUE FOR SOCIALLY CONSCIOUS INSTALLATIONS THOSE OF US STILL RECOVERING FROM THIS YEAR'S WHITNEY BIENNIAL MAY RECOIL AT THE NOTION OF YET ANOTHER SHOW OF POLEMICAL ART BUT THE JEWISH MUSEUM'S BOW TO POLITICAL CORRECTNESS TURNS OUT TO BE SURPRISINGLY ENGAGING TRUE THERE ARE SOME DUDS THE OVERRATED AND OMNIPRESENT NANCY SPERO WEIGHS IN WITH YET ANOTHER OF HER NOISY FEMINIST WALL PIECES ITS LETTERING AND IMAGERY LOOKING STRANGELY COMMERCIAL LIKE A MURAL AT BLOOMINGDALE'S BUT OTHER ARTISTS FARE MUCH BETTER ELEANOR ANTIN CONTRIVES A LIVELY PIECE OF THEATER IN HER VILNA NIGHTS A LIFESIZE RECREATION OF A SHTETL COURTYARD WE GLIMPSE THE SCENE FROM BEHIND A CRUMBLING STONE WALL AND PEER INTO WINDOWS WHERE ANONYMOUS LIVES UNFOLD ON VIDEO ANOTHER EFFECTIVE INSTALLATION IS CHRISTIAN BOLTANSKI'S MUSEUM OF THE BAR MITZVAH IN WHICH A GALLERY LINED WITH DOZENS OF PHOTOGRAPHS OF AMERICAN BAR MITZVAHS STARRING BOYS IN YARMULKES AND THEIR PROUD PLUMP RELATIVES TURNS OUT TO BE REMARKABLY FREE OF CONDESCENSION OR CAMP THE RUSSIAN EMIGRE ILYA KABAKOV HAS CREATED AN ELEGIAC TOUR DE FORCE IN HIS MOTHER AND SON WHICH OCCUPIES A DARKENED ROOM STRUNG WALLTOWALL WITH MEMENTOS OF THE ARTIST'S CHILDHOOD WE'RE HANDED A FLASHLIGHT AS WE ENTER THE ROOM AND BECOME SPIES AS WE PROCEED THROUGH IT AIMING OUR LIGHTS AT THE TATTERED RELICS OF SOMEONE ELSE'S PAST CRUMPLED CANDY WRAPPERS LIDS FROM COFFEE CUPS A BOTTLE CAP A SPONGE A PLASTIC FORK EACH ITEM BEARS A TYPED QUOTATION FROM THE ARTIST'S MOTHER A TYPICAL MESSAGE READS IT'S RAINING OUTSIDE MAYBE YOU SHOULD WEAR A RAINCOAT WITH WORDS OF WISDOM SUCH AS THESE MR KABAKOV BECOMES AN ARTWORLD PROUST PIECING TOGETHER A DENSE LYRICAL EVOCATION OF HIS NAGGING MOTHER THIS IS POLITICS TEMPERED BY POETRY A COMBINATION ONE HOPES TO SEE MORE OF AT THE MUSEUM 9306110099 930611 CREDIT RATINGS HJ HEINZ CO PITTSBURGH STANDARD & POOR'S CORP SAID IT PLACED THIS FOOD COMPANY'S DOUBLEA SENIOR DEBT RATING ON CREDITWATCH WITH NEGATIVE IMPLICATIONS ABOUT 28 BILLION OF DEBT IS OUTSTANDING S&P SAID THE RATING AGENCY SAID THE MOVE FOLLOWED AN ANNOUNCEMENT BY HEINZ THAT ITS BOARD APPROVED THE REPURCHASE OF AS MANY AS 10 MILLION ADDITIONAL SHARES S&P SAID ABOUT 97 MILLION HEINZ SHARES HAVE BEEN REPURCHASED UNDER A PROGRAM THAT BEGAN IN DECEMBER 1991 THE COMPANY'S OVERALL FINANCIAL RISK PROFILE HAS RISEN IN RECENT YEARS AS HEINZ INCREASED ITS USE OF DEBT TO FUND STRATEGIC ACQUISITIONS AND SHARE REPURCHASES S&P SAID HEINZ SPENT MORE THAN 900 MILLION FOR ACQUISITIONS AND MORE THAN 500 MILLION ON SHARE REPURCHASES IN FISCAL 1992 AND THE NINE MONTHS ENDED JANUARY 1993 S&P SAID ITS DEBTTOCAPITAL RATIO WAS 55 IN JANUARY UP FROM 37 AT THE END OF FISCAL 1991 A HEINZ SPOKESWOMAN SAID S&P'S MOVE DOESN'T REFLECT AT ALL ON THE SOLID STATUS OF OUR BUSINESS S&P SAID IT WILL REVIEW THE RATINGS AFTER EVALUATING MANAGEMENT'S FUTURE FINANCIAL AND OPERATING STRATEGIES S&P AFFIRMED HEINZ'S A1PLUS COMMERCIAL PAPER RATING 9306110098 930611 HEALTH INITIATIVE MANY STATES EMBRACE MANAGED CARE SYSTEM FOR MEDICAID PATIENTS USING HMOS SAVES MONEY AND LETS PEOPLE STICK WITH A SINGLE PHYSICIAN A BOON FOR PREGNANT WOMEN BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL PHILADELPHIA FOR YEARS SELENA BUTLER WANTED HER OWN PRIVATE DOCTOR BUT SHE WAS ON MEDICAID THE GOVERNMENT HEALTHCARE PROGRAM FOR POOR PEOPLE SO IT WAS AN IDLE WISH WHEN SHE BECAME PREGNANT TWICE AS A TEENAGER SHE GOT ERRATIC PRENATAL CARE AT LOCAL CLINICS SEEING A DIFFERENT DOCTOR OR NURSE EACH TIME THE CONSEQUENCES WERE DIRE UNAWARE THAT SHE WAS PRONE TO PREMATURE LABOR MS BUTLER EACH TIME GAVE BIRTH AFTER JUST FIVE MONTHS OF PREGNANCY ONE BABY DIED IN THE DELIVERY ROOM ANOTHER WEIGHED A MERE 26 OUNCES AND REQUIRED OPENHEART SURGERY TO SURVIVE IT TOOK SIX MONTHS OF INTENSIVE CARE AND MORE THAN 200000 IN GOVERNMENTPAID HOSPITAL BILLS BEFORE THE TINY GIRL WAS READY TO GO HOME NOW THE 23YEAROLD MS BUTLER IS PREGNANT AGAIN THIS TIME HOWEVER SHE IS ENROLLED IN A PIONEERING NEW MEDICAID PROGRAM THAT MATCHES POOR PEOPLE WITH PRIVATE DOCTORS THE PROGRAM HAS HELPED HER CARRY HER LATEST BABY INTO THE EIGHTH MONTH OF PREGNANCY LONGER THAN EVER BEFORE AND IT IS PART OF A TREND IN PHILADELPHIA WHERE MORE THAN 100000 POOR PEOPLE NOW GET MEDICAL CARE THROUGH LOCAL HEALTH MAINTENANCE ORGANIZATIONS INSTEAD OF THE STATE BUREAUCRACY SUCH EXAMPLES ARE PART OF A PRIVATIZATION OF MEDICAID THAT IS SWEEPING THROUGH THE NATION STATES AND THE FEDERAL GOVERNMENT AREN'T LETTING GO ENTIRELY THEY STILL ARE JOINTLY FUNDING MEDICAID AND SETTING THE BASIC RULES OF COVERAGE BUT DAYTODAY CONTROL OF HEALTH PLANS FOR THE POOR IS RAPIDLY BEING MOVED INTO THE HANDS OF HMOS AND PRIVATE INSURERS THESE NEW MANAGED CARE PROGRAMS AMOUNT TO A DRASTIC SWITCH IN THE WAY THAT SOME OF THE NATION'S 30 MILLION MEDICAID RECIPIENTS GET MEDICAL CARE CASE MANAGERS USUALLY PRIMARYCARE DOCTORS ARE ASSIGNED TO WATCH EACH MEMBER'S HEALTH THIS HELPS PATIENTS GET CONSISTENT TREATMENT INCLUDING LOWCOST PREVENTIVE MEDICINE THE NEW SYSTEM ALSO SEEKS TO SAVE MONEY BY MAKING IT LESS LIKELY PATIENTS WILL OVERUSE HOSPITALS OR COSTLY SPECIALISTS SUCH TREATMENT ISN'T AVAILABLE WITHOUT THE CASE MANAGER'S PERMISSION BY CONTRAST MANY CURRENT MEDICAID RECIPIENTS GO TO THE EMERGENCY ROOM FOR MINOR ILLNESSES WHERE THEY NEVER SEE THE SAME DOCTOR SAYS MARY DEWANE DIRECTOR OF MEDICAID MANAGED CARE AT THE US HEALTH CARE FINANCING ADMINISTRATION THAT JACKS UP COSTS WHICH ULTIMATELY ARE BORNE BY TAXPAYERS IT ALSO LEADS TO SITUATIONS IN WHICH DOCTORS' ADVICE ISN'T FOLLOWED WELL IF AT ALL SHE ADDS BY TURNING MORE TO MANAGED CARE GOVERNMENT OFFICIALS HOPE TO RESTRAIN MEDICAID COSTS WHICH HAVE BEEN SOARING AS MUCH AS 29 A YEAR THIS YEAR STATE AND FEDERAL OUTLAYS FOR MEDICAID ARE EXPECTED TO EXCEED 130 BILLION FOUR TIMES WHAT THE PROGRAM COST 10 YEARS AGO THIS NEW APPROACH ISN'T ALWAYS A SUCCESS IN STATES THAT DON'T CLOSELY MONITOR HMO BEHAVIOR THERE IS A RISK THAT HEALTH PLANS MAY OFFER CATCHY MARKETING BUT SHODDY CARE EARNING THEM THE LABEL OF MEDICAID MILLS OTHER HMOS SOMETIMES SNAP UP THE HEALTHIEST PATIENTS WHILE LEAVING TRADITIONAL MEDICAID TO DEAL WITH SICKER PEOPLE AND PAPERWORK IS A CONSTANT PROBLEM CHIEFLY BECAUSE MANY MEDICAID RECIPIENTS GO ON AND OFF PROGRAM ROLLS AS THEIR INCOME AND FAMILY STATUS CHANGE STILL STUDIES SUGGEST THAT MEDICAID MANAGED CARE CAN PAY OFF ROBERT HURLEY AN ASSISTANT PROFESSOR AT VIRGINIA MEDICAL COLLEGE RECENTLY LED A TEAM THAT EXAMINED 25 SUCH PROGRAMS ACROSS THE US IT FOUND THAT PERMEMBER COSTS WERE 5 TO 15 LOWER THAN IN CONVENTIONAL MEDICAID THE BIG REASONS SHARPLY LOWER HOSPITALIZATION RATES AND EMERGENCYROOM USAGE IN A WORLD WITH MEDICAID COSTS EXPLODING MANAGED CARE SOMETIMES GETS SOLD BEYOND WHAT IT CAN DELIVER SAYS DREW ALTMAN PRESIDENT OF THE KAISER FOUNDATION WHICH STUDIES HEALTHCARE ISSUES BUT IF I WERE THE HUMANSERVICES COMMISSIONER OF A STATE I'D STILL GIVE IT A TRY ALL TOLD 39 STATES ARE EXPERIMENTING WITH MEDICAID MANAGED CARE ACCORDING TO THE HCFA AS OF LAST YEAR THESE PROGRAMS EMBRACED 36 MILLION PEOPLE OR 12 OF THE TOTAL MEDICAID POPULATION DOUBLE THE ENROLLMENT OF FIVE YEARS AGO AS DEMAND FOR MEDICAID HMOS GROWS NEARLY ALL OF THE MAJOR PLAYERS IN THE COMMERCIAL HMO MARKET ARE TRYING THEIR HAND AT THIS NEW MARKET BLUE CROSS/BLUE SHIELD COMPANIES IN MANY STATES ARE EXPANDING INTO MEDICAID IN NEW YORK SUCH MAJOR PLAYERS AS US HEALTHCARE CORP AND THE HMO UNITS OF AETNA LIFE & CASUALTY CO AND CIGNA CORP ARE DOING THE SAME WE FEEL THIS CAN BE AN ATTRACTIVE BUSINESS FOR US SAYS FRANK BROSGOL MEDICAL DIRECTOR FOR AETNA'S NEW YORK HMOS THE BOOM IN MEDICAID HMOS MAY TIE IN NEATLY WITH PRESIDENT CLINTON'S HOPES OF OVERHAULING THE NATION'S HEALTHCARE SYSTEM THIS SPRING MEMBERS OF HIS HEALTHCARE TASK FORCE INDICATED THAT IT WILL SEEK TO BLEND THE CURRENT MEDICAID SYSTEM INTO MAINSTREAM HEALTH COVERAGE WHAT IS MORE VARIOUS STATES ARE RAPIDLY MOVING THEIR MEDICAID PROGRAMS IN THAT DIRECTION EVEN AS THE WHITE HOUSE KEEPS POSTPONING THE LAUNCH OF ITS HEALTH PLAN THE WAY MEDICAID WAS ORIGINALLY SET UP IN THE 1960S MANAGED CARE WASN'T AN OPTION LEGISLATORS WANTED POOR PEOPLE TO HAVE MAXIMUM FREEDOM IN CHOOSING THEIR DOCTORS AS A RESULT EARLY REGULATIONS PREVENTED MEDICAID PROGRAMS FROM LIMITING RECIPIENTS' CHOICE OF DOCTORS A STEP AT THE HEART OF ANY MANAGEDCARE SYSTEM CALIFORNIA TRIED IN THE 1970S TO ALLOW SOME EXPERIMENTS WITH MEDICAID HMOS BUT IT DIDN'T SCREEN OUT UNSCRUPULOUS OPERATORS AND ITS PROGRAMS SOON COLLAPSED IT WASN'T UNTIL 1982 WHEN ARIZONA GOT FEDERAL PERMISSION TO TRY A MORE CAREFULLY SUPERVISED VERSION OF MEDICAID MANAGED CARE ON A STATEWIDE BASIS THAT THE CONCEPT BEGAN TAKING HOLD ARIZONA'S PROGRAM GOT HIGH MARKS IN A RAND CORP STUDY SPURRING OTHER STATES AND CITIES TO TRY THEIR OWN VERSIONS AMONG THE EARLY FOLLOWERS WERE MARYLAND KENTUCKY MILWAUKEE AND SAN MATEO COUNTY CALIF PRIVATE FOUNDATIONS GOT IN THE ACT TOO WITH THE ROBERT WOOD JOHNSON FOUNDATION IN 1984 PROVIDING SEED MONEY FOR ABOUT A DOZEN MEDICAID MANAGEDCARE PROGRAMS ACROSS THE US NOW THE TWO LARGEST MEDICAID STATES NEW YORK AND CALIFORNIA ARE TRYING TO EMBRACE MANAGED CARE IN A MAJOR WAY BOTH WANT 50 OF THEIR MEDICAID RECIPIENTS TO ENTER MANAGEDCARE PROGRAMS WITHIN THE NEXT TWO YEARS AS MUCH AS POSSIBLE BOTH STATES WANT PEOPLE TO SWITCH VOLUNTARILY THOUGH CONVERSION IS MANDATORY IN A FEW NEW YORK DISTRICTS IF PARTICIPANTS WANT TO CONTINUE GETTING PUBLIC AID IN BOTH NEW YORK AND CALIFORNIA ADMINISTRATIVE HEADACHES HAVE BEEN BIGGER THAN EXPECTED COST SAVINGS IN CALIFORNIA ALSO HAVE BEEN SMALLER THAN HOPED FOR STILL BOTH STATES ARE PRESSING AHEAD A LOT OF CLIENTS AREN'T USED TO AN APPOINTMENT SYSTEM WITH A DOCTOR SAYS ALAN MANDEL DIRECTOR OF NEW YORK CITY'S MANAGEDCARE MEDICAID PROGRAM THEY ARE USED TO GOING TO AN EMERGENCY ROOM ON A WHIM THEY HAVE TO BE REEDUCATED AT A DINGY WELFARE CENTER ON FLATBUSH AVENUE IN BROOKLYN BOTH THE APPEAL AND THE FRUSTRATIONS OF MEDICAID MANAGED CARE ARE APPARENT EACH DAY ABOUT 60 MEDICAID RECIPIENTS SIT DOWN FOR A HALFHOUR SESSION WITH A CASEWORKER TO LEARN ABOUT VARIOUS MANAGEDCARE PROGRAMS SOME LIKE THE IDEA THE MOMENT THEY HEAR IT OTHERS ARE WARY ONE MORNING CASEWORKER LUQMAN SALAAM IS DOING HIS BEST TO PLAY UP THE VIRTUES OF HAVING A REGULAR DOCTOR BUT THE MANAGEDCARE NETWORKS HE OFFERS AREN'T PERFECT AND HIS CLIENTS QUICKLY SPOT FLAWS A VIETNAMESE WOMAN DOESN'T THINK ANY OF THE HMO DOCTORS WILL SPEAK HER LANGUAGE ONE WOMAN LIKES THE CONCEPT BUT IS DISMAYED TO LEARN THERE AREN'T ANY DOCTORS AVAILABLE IN HER NEIGHBORHOOD STILL SOME ARE WILLING TO SWITCH PAMELA HIGHT A HEAVYSET YOUNG MOTHER IN JEANS AND A FLORAL BLOUSE GETS HER FIRST INTRODUCTION TO THE CASEMANAGER SYSTEM SAY MY KID NEEDS A DERMATOLOGIST SHE ASKS WHAT WOULD HAPPEN A CASEWORKER TELLS MS HIGHT THAT SHE WOULD TAKE HER CHILD TO THE PRIMARYCARE DOCTOR WHO WOULD DECIDE IF IT REALLY WAS NECESSARY TO SEE A SKIN SPECIALIST IF SO THE DOCTOR WOULD RECOMMEND A DERMATOLOGIST MS HIGHT MULLS THIS OVER AND DECIDES SHE LIKES IT THAT'S NEAT SHE DECLARES AS SHE SIGNS UP FOR AN HMO OF ALL THE PATIENTS WHOSE BEHAVIOR CAN BE CHANGED BY MANAGED CARE THE GROUP THAT MOST INTRIGUES HEALTH SPECIALISTS IS PREGNANT WOMEN EACH YEAR MEDICAID PAYS FOR ABOUT 15 MILLION BIRTHS THAT INCLUDES A DISPROPORTIONATE SHARE OF LOWBIRTHWEIGHT AND DRUGADDICTED BABIES MANY OF WHOM REQUIRE MORE THAN 100000 OF CARE APIECE BEFORE THEY CAN LEAVE THE HOSPITAL WITH PROPER PRENATAL CARE MOST OF THESE CHILDREN COULD ENTER THE WORLD IN HEALTHY LOWCOST DELIVERIES AMONG THE HMOS TRYING SOMETHING SPECIAL WITH PREGNANT WOMEN IS A BALTIMORE PLAN OWNED BY PRUDENTIAL INSURANCE CO OF AMERICA THAT COVERS 42000 MEDICAID RECIPIENTS IN 1991 THE HMO PUT IN A NEW INCENTIVE FOR EXPECTANT MOTHERS TO COME IN FOR PRENATAL COUNSELING PAYING THEM 10 PER VISIT SINCE THEN PROGRAM DIRECTOR BARBARA HILL REPORTS THE NUMBER OF PREMATURE BABIES REQUIRING A STAY IN THE NEONATAL INTENSIVECARE UNIT HAS DROPPED TO JUST 16 A YEAR FROM MORE THAN 40 IN PHILADELPHIA SEVERAL HMOS HAVE HIRED EITHER NURSES OR OTHER WORKERS TO MAKE REGULAR HOME VISITS TO HIGHRISK PREGNANT WOMEN THOSE VISITS ARE A WAY TO EDUCATE WOMEN ABOUT THE IMPORTANCE OF PRENATAL CARE SAYS JOANIE ALSTON HEAD OF THE HOMEVISIT PROGRAM AT ONE HMO HEALTH PARTNERS OF PHILADELPHIA BECAUSE OF THE WAY MANY HMOS ARE PAID THEY HAVE BIG FINANCIAL INCENTIVES TO PROMOTE HEALTHY PREGNANCIES STATES OFTEN PAY HMOS A SET RATE FOR EACH MEMBER THUS HMOS PROFIT IF MEMBERS DELIVER HEALTHY BABIES AND TAKE A FINANCIAL POUNDING IF TROUBLED PREGNANCIES ARE COMMON IN THE CASE OF MS BUTLER THE PHILADELPHIA WOMAN PRONE TO PREMATURE BIRTHS HEALTH PARTNERS IS PAYING FOR 8000 OF HOMEMONITORING EQUIPMENT AND PRESCRIPTION DRUGS MEANT TO WARD OFF PREMATURE LABOR THAT COSTS MORE THAN STANDARD PRENATAL CARE SAYS HER OBSTETRICIAN CAROL ALLEN BUT IT'S FAR LESS THAN THE CHARGES INVOLVED WITH A LOWBIRTHWEIGHT BABY IN THEORY CONVENTIONAL MEDICAID PLANS SHOULD RESPOND TO SOME OF THE SAME FINANCIAL FACTORS THAT ENCOURAGE HEALTHY DELIVERIES BUT OBSTETRICIANS SAY THAT BIG STATE BUREAUCRACIES AND PIECEWORK PAY SCALES NUMB EVERYONE TO AVOIDABLE COSTS MEDICAID INVITES A HERD MENTALITY SAYS HERMAN REID A PHILADELPHIA OBSTETRICIAN WHO GETS THE BULK OF HIS PRACTICE FROM THE NEW HMOS EVERYONE IS GIVEN A 9 AM APPOINTMENT AND LEFT WAITING FOR HOURS DOCTORS GET PAID AS LITTLE AS 17 PER PATIENT VISIT HE ADDS TOO LITTLE TO ENCOURAGE DETAILED PATIENT CONSULTATIONS WHILE MANAGED CARE IS RINGING UP SOME SUCCESSES IN PRENATAL CARE FOR THE POOR IT FACES TOUGHER CHALLENGES INVOLVING DISABLED AND ELDERLY PEOPLE THEY ACCOUNT FOR 30 OF OVERALL MEDICAID MEMBERS WELL BELOW THE NUMBERS FOR MOTHERS AND SMALL CHILDREN BUT THE ELDERLY AND DISABLED NEED FAR MORE CARE CONSUMING AS MUCH AS 70 OF MEDICAID BUDGETS IN SOME STATES STILL EVEN DISABLED MEDICAID MEMBERS CAN SOMETIMES GET CHEAPER MORE EFFICIENT CARE IF THEY ARE ASSIGNED TO PRIMARY DOCTORS RICHARD BARON A PHILADELPHIA INTERNIST CITES AN EPILEPTIC WHO IN A TWOYEAR SPAN HAD SHOWN UP AT FIVE DIFFERENT HOSPITALS' EMERGENCY ROOMS WITH SEIZURES NONE OF THE HOSPITALS HAD ANY PATIENT HISTORY ON THE MAN SO EACH RAN A 3000 BATTERY OF TESTS WHEN HE SHOWED UP TO MAKE SURE HE DIDN'T HAVE A BRAIN TUMOR OR MENINGITIS THE SIXTH TIME THAT THE MAN APPEARED AT AN EMERGENCY ROOM HE WAS IN A MEDICAID HMO UNDER DR BARON'S CARE HOSPITAL NURSES CALLED DR BARON TO ASK ABOUT THE PATIENT'S CONDITION DISCOVERED HE WAS EPILEPTIC AND TREATED HIM WITH A PRESCRIPTION OF AN ANTISEIZURE MEDICINE DILANTIN ITS COST 30 9306110097 930611 LEISURE & ARTS BOOKSHELF US FOREIGN POLICY YALTA AND AFTER BY CHRISTOPHER MANION THREE YEARS AGO ON THESE PAGES ARTHUR SCHLESINGER JR ARGUED THAT THE CHANGES IN EASTERN EUROPE HAD VINDICATED FDR IN THE SHORT RUN STALIN GAINED BUT STATESMANSHIP IS TESTED BY THE LONG RUN HE WROTE NOW 45 YEARS LATER THE SOVIET UNION IS AT LAST HONORING THE YALTA AGREEMENTS ROOSEVELT TO HIM WAS A VIRTUOSO POLITICIAN WHO DID WELL IN TRYING TO OUTWIT STALIN AND HE INVOKED WALTER LIPPMANN WHO ONCE WROTE ROOSEVELT WAS TOO CYNICAL A MAN TO THINK HE COULD CHARM STALIN IN A NEW HISTORY OF APPEASEMENT FROM MUNICH TO YALTA SPHERES OF INFLUENCE IVAN R DEE 318 PAGES 2850 LLOYD C GARDNER ATTEMPTS TO KEEP SUCH OLD MYTHS OF PRESCIENT LEADERSHIP ALIVE BUT ACTUALLY LAYS THEM TO REST MR GARDNER A HISTORIAN AT RUTGERS PRESENTS AN ACCOUNT OF DIPLOMATIC CONVERSATIONS SO SHORN OF HISTORICAL CONTEXT THAT ONE ALMOST FORGETS THAT A WAR IS GOING ON AS A COLLECTION OF CONVERSATIONS HOWEVER HIS BOOK IS METICULOUS LIFELESS EXHAUSTIVE AND ALSO STUNNINGLY REVEALING AS AN ACCOUNT OF CHAMBERLAIN'S RELATIONSHIP WITH HITLER AND ROOSEVELT'S WITH STALIN IN BOTH CASES VANITY ABOUNDS IN 1938 CHAMBERLAIN WRITES THAT HE HAS IMPRESSED HITLER HE LIKED THE RAPIDITY WITH WHICH I GRASPED THE ESSENTIALS I GOT THE IMPRESSION THAT HERE WAS A MAN THAT COULD BE RELIED UPON WHEN HE HAD GIVEN HIS WORD HITLER IN FACT HAD THIS TO SAY ABOUT THE SPRY PRIME MINISTER MR CHAMBERLAIN IS SUCH A NICE OLD MAN AND I HAVE SIGNED SO MANY PHOTOGRAPHS AND BOOKS THAT I THOUGHT I WOULD GIVE HIM MY SIGNATURE AS A PLEASANT SOUVENIR ROOSEVELT FOR HIS PART UPBRAIDS CHURCHILL IN 1942 I THINK I CAN PERSONALLY HANDLE STALIN BETTER THAN YOUR FOREIGN OFFICE OR MY STATE DEPARTMENT STALIN HATES THE GUTS OF ALL YOUR TOP PEOPLE HE THINKS HE LIKES ME BETTER AND I HOPE HE WILL CONTINUE TO DO SO BUT OF COURSE ROOSEVELT AT YALTA FARED NO BETTER THAN CHAMBERLAIN IN MUNICH THOUGH MR GARDNER SHRUGS OFF THE RESULTS SAYING IT COULD HAVE BEEN WORSE WITHOUT INTENDING TO MR GARDNER CONFIRMS PAUL JOHNSON'S CONCLUSION IN MODERN TIMES THAT THERE WAS AN INCORRIGIBLE ELEMENT OF FRIVOLITY IN ROOSEVELT'S HANDLING OF FOREIGN POLICY RIGHT UP TO HIS DEATH IN 1945 BY CONTRAST THERE WAS NOTHING CASUAL ABOUT WILL CLAYTON AN UNSUNG WARTIME HERO WITHOUT A NAIVE BONE IN HIS BODY CLAYTON CAN BE CONSIDERED AS NEWSWEEK ONCE DID THE PRINCIPAL ARCHITECT OF AMERICAN POSTWAR FOREIGN POLICY AND GREGORY FOSSEDAL A FORMER MEMBER OF THIS PAPER'S EDITORIAL STAFF AND NOW A RESEARCH FELLOW AT THE HOOVER INSTITUTION HAS PROVIDED A FINE ACCOUNT OF HIS LIFE IN OUR FINEST HOUR HOOVER INSTITUTION PRESS 349 PAGES 3495 AS A WASHINGTON INSIDER CLAYTON RAN AGAINST THE GRAIN HE WENT TO WORK AT THE AGE OF 15 TO SUPPORT HIS FAMILY MADE A FORTUNE IN COTTON BECAME HEAD OF THE WARTIME RECONSTRUCTION FINANCE CORPORATION RFC ACTUALLY TURNED DOWN PRESIDENT TRUMAN'S OFFER TO BE SECRETARY OF STATE AND LEFT WASHINGTON WHEN HE CONSIDERED HIS WORK TO BE FINISHED HE ASSIDUOUSLY AVOIDED PUBLICITY AND LEFT NO MEMOIR A MOST UNUSUAL MAN IN ANY AGE CLAYTON WAS A MAN OF ADAMANTINE CHARACTER AND PROFOUND COMMON SENSE WHEN HIS COTTON COMPETITORS COMPLAINED TO WASHINGTON ABOUT HIS ATTEMPT TO FREE UP THE MARKET HE DEMANDED CONGRESSIONAL HEARINGS WHICH WERE NOT PREORCHESTRATED DOGANDPONY SHOWS IN THOSE DAYS ULTIMATELY HE CONVINCED THE CONGRESS TO WRITE HIS INITIATIVES INTO LAW LATER IN ANOTHER TURF BATTLE AS RFC CHAIRMAN CLAYTON PREVAILED ON FDR TO DROP WALLACE FROM THE DEMOCRATIC TICKET IN FAVOR OF HARRY TRUMAN CLAYTON'S ORIGINS IN TUPELO MISS WERE EVERY BIT AS HUMBLE AS THOSE OF THE MAN FROM HOPE BUT PROVIDED CLAYTON WITH AN ENTIRELY DIFFERENT ROAD MAP A MAN WHO KNEW MARKETS INTIMATELY HE ENDORSED FREE TRADE AS THE ROAD TO PEACE WASHINGTON PLAYERS THOUGHT HIS GENIUS INDISPENSABLE BUT HE REMAINED FAITHFUL FIRST AND ALWAYS TO HIS WIFE WHOM FDR ONCE HAD TO WRITE FOR PERMISSION TO KEEP CLAYTON FROM LEAVING TOWN THE PRAISE THAT HIS ASSOCIATES BESTOWED UPON HIS CHARACTER AND ABILITIES RINGS OF ANOTHER LESS CYNICAL TIME CLAYTON SOARED AS AMERICA'S LEAD NEGOTIATOR ON THE FINANCIAL INSTITUTIONS GROWING OUT OF THE BRETTON WOODS CONFERENCE THE IMF TODAY'S WORLD BANK AND THE GATT THE EIGHTHGRADE DROPOUT BECAME CLOSE FRIENDS WITH THE HIGHBROW LORD KEYNES BRITAIN'S REPRESENTATIVE HIS MOST MEMORABLE CONTRIBUTION WAS DRAFTING THE FAMOUS HARVARD COMMENCEMENT SPEECH MARSHALL GAVE ON JUNE 5 1947 WHICH ANNOUNCED THE MARSHALL PLAN THAT LARGELY REBUILT EUROPE ONE FINISHES THIS READABLE HISTORY DEPRESSED EVEN MORE THAN EVER BY THE NAGGING QUESTION WHERE ARE THE SELFLESS OPTIMISTIC HONORABLE AND PATRIOTIC CLAYTONS OF TODAY MR MANION A SENIOR FELLOW AT THE AMERICAN FOREIGN POLICY COUNCIL IN MCLEAN VA WAS ON THE STAFF OF THE SENATE FOREIGN RELATIONS COMMITTEE FROM 19811989 9306110095 930611 BUSINESS BRIEF ADAMS EXPRESS CO RIGHTS OFFERING TO HOLDERS GETS APPROVAL OF DIRECTORS ADAMS EXPRESS CO BALTIMORE SAID ITS DIRECTORS APPROVED AN OFFERING TO SHAREHOLDERS OF NONTRANSFERABLE RIGHTS TO BUY ADDITIONAL SHARES OF THE COMPANY UNDER THE OFFER ONE RIGHT WOULD BE ISSUED FOR EACH COMMON SHARE OUTSTANDING FIVE RIGHTS WILL BE REQUIRED TO BUY ONE ADDITIONAL COMMON SHARE AT THE SUBSCRIPTION PRICE WHICH HASN'T YET BEEN DETERMINED HOLDERS WHO SUBSCRIBE FOR THE MAXIMUM NUMBER OF SHARES WILL BE ABLE TO SUBSCRIBE FOR ADDITIONAL SHARES NOT SUBSCRIBED FOR BY OTHERS THE COMPANY SAID THE COMPANY SAID THE OFFERING IS SUBJECT TO THE FILING OF A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION EXPECTED WITHIN THREE WEEKS ADAMS EXPRESS A CLOSEDEND INVESTMENT COMPANY CURRENTLY HAS MORE THAN 34 MILLION SHARES OUTSTANDING 9306110094 930611 TECHNOLOGY & HEALTH MERCK DEVELOPS TYPE OF HUMAN GROWTH DRUG BY MICHAEL WALDHOLZ STAFF REPORTER OF THE WALL STREET JOURNAL MERCK & CO SCIENTISTS HAVE DEVELOPED A NEW TYPE OF HUMAN GROWTH HORMONE DRUG THAT MIGHT SOMEDAY COMPETE AGAINST BIGSELLING INJECTABLE FORMS OF THE HORMONE SOLD BY GENENTECH INC AND ELI LILLY & CO THE MERCK RESEARCHERS REPORTED THAT THE EXPERIMENTAL DRUG STIMULATES THE BODY TO MANUFACTURE EXTRA LEVELS OF HUMAN GROWTH HORMONE MERCK SAID AN INJECTABLE FORM OF THE DRUG HAS PROVEN SAFE WHEN TRIED IN HEALTHY HUMAN SUBJECTS BUT THE COMPANY IS SEEKING AN ORAL VERSION THAT WOULD BE SIMPLER TO ADMINISTER IN A REPORT IN THIS WEEK'S ISSUE OF THE JOURNAL SCIENCE MERCK RESEARCHER ROY G SMITH AND COLLEAGUES SAID THEY BELIEVED THAT TRIGGERING THE BODY TO PRODUCE EXTRA HUMAN GROWTH HORMONE MIGHT BE USEFUL IN REVERSING SOME OF THE BODILY CHANGES ASSOCIATED WITH AGING IN TREATING DWARFISM OR OTHER STATURERELATED PROBLEMS IN ACCELERATING HEALING OF BURNS OR EVEN IN PREVENTING OSTEOPOROSIS THE BONETHINNING DISORDER COMMON IN ELDERLY WOMEN AT PRESENT MOST HUMAN GROWTH HORMONE IS PRODUCED THROUGH RECOMBINANT DNA TECHNOLOGY AND SOLD BY GENENTECH OF SOUTH SAN FRANCISCO UNDER THE NAME PROTROPIN AND BY LILLY OF INDIANAPOLIS AS HUMATROPE COMBINED ANNUAL SALES OF THE TWO DRUGS ARE ABOUT 360 MILLION MOSTLY FOR USE IN TREATING CHILDREN WITH GROWTH PROBLEMS BUT BOTH THOSE PRODUCTS ARE ADMINISTERED VIA INJECTION WHICH MAKES THEIR USE DIFFICULT FOR SOME PEOPLE BUT SCIENTISTS AT MERCK WHITEHOUSE STATION NJ SAID THEIR DRUG CALLED L692429 MIGHT BE MORE USEFUL BECAUSE IT WOULD INVOLVE THE SECRETION OF THE BODY'S OWN NATURAL HUMAN GROWTH HORMONE FROM PITUITARY GLAND CELLS BEN SHAPIRO EXECUTIVE VICE PRESIDENT FOR MERCK'S BASIC RESEARCH OPERATIONS SAID THE DRUG IS CALLED A SECRETATOGUE BECAUSE IT STIMULATES THE NATURAL SECRETION OF THE HORMONE THIS WAS A VERY CREATIVE PROJECT DR SHAPIRO SAID A REAL TRIUMPH BY OUR CHEMISTS AND BIOLOGISTS HE SAID THE DRUG WAS FOUND BY SEEKING A SMALLSIZED MOLECULE THAT ACTED LIKE A MUCH LARGER PROTEIN ALREADY KNOWN TO CAUSE THE PITUITARY GLAND TO SECRETE HORMONES THE SMALLER COMPOUND COULD BE TURNED INTO A PILL WHEREAS THE LARGESIZED PROTEIN CAN ONLY BE ADMINISTERED INTRAVENOUSLY DR SHAPIRO SAID THE RESEARCH LEAPED ITS FIRST HURDLE BY SHOWING THE DRUG CAN TRIGGER NATURAL HORMONE RELEASE NEW ORALLY ACTIVE COMPOUNDS MUST STILL BE DEVELOPED AND TESTED FOR SAFETY AND EFFICACY ONLY THEN WILL MERCK BEGIN TO TEST THE DRUG TO SEE IF IT HAS ANY OF A WIDE RANGE OF USES DR SHAPIRO SAID MERCK IS GIVING THE RESEARCH PROJECT A HIGH PRIORITY 9306110093 930611 SUNAMERICA TO BUY STAKE IN NEW OPERATOR OF EXECUTIVE LIFE LOS ANGELES SUNAMERICA INC AN INSURANCE AND FINANCIAL SERVICES CONCERN SAID IT AGREED TO PURCHASE FOR LESS THAN 50 MILLION A STAKE IN A COMPANY CREATED BY A FRENCH INVESTOR GROUP TO ASSUME THE OPERATIONS OF FAILED EXECUTIVE LIFE INSURANCE CO SUNAMERICA SAID IT PLANS TO BUY ONETHIRD OF THE PARENT OF AURORA NATIONAL LIFE ASSURANCE CO FORMED BY THE FRENCH GROUP LED BY MUTUELLE ASSURANCE ARTISANALE DE FRANCE SUNAMERICA'S ROLE WILL BE AS AN INVESTOR SAID ELI BROAD CHAIRMAN AND CHIEF EXECUTIVE OFFICER TERMS WEREN'T DISCLOSED BEYOND SUNAMERICA'S INDICATION THAT ITS INVESTMENT OF UNDER 50 MILLION WAS SMALL RELATIVE TO ITS 17 BILLION OF ASSETS OWNED OR UNDER MANAGEMENT THE ANNOUNCEMENT CAME THE DAY AFTER THE LONGPENDING SALE OF EXECUTIVE LIFE TO THE FRENCH GROUP APPEARED TO MOVE A STEP CLOSER TO COMPLETION A LARGE POLICYHOLDER GROUP WITHDREW ITS OBJECTION TO THE PLAN WHICH LEAVES HOLDERS OF 165 BILLION OF EXECUTIVE LIFEBACKED MUNICIPAL BONDS AS THE REMAINING OPPONENTS A LAWYER FOR THE SOCALLED MUNIGIC BONDHOLDERS SAID THE BEST INTERESTS OF THE POLICYHOLDERS WOULD STILL BE SERVED BY UNWINDING THE DEAL THE POLICYHOLDER GROUP THAT WITHDREW ITS OBJECTIONS DID SO AFTER THE FRENCH GROUP OFFERED A SETTLEMENT BONUS THAT SLIGHTLY INCREASES POLICYHOLDER PAYOUTS AND COULD ADD UP TO AS MUCH AS ABOUT 63 MILLION A SUNAMERICA SPOKESWOMAN SAID THE COMPANY'S INVESTMENT DOESN'T CHANGE THE FRENCH GROUP'S DEAL WHATSOEVER THE INVESTMENT SUBJECT TO VARIOUS APPROVALS WOULD BE COMPLETED ALONG WITH THE FRENCH GROUP'S PLAN 9306110092 930611 NOTABLE & QUOTABLE FROM A JUSTRELEASED JUNE 1990 MEMO FROM GEORGE BUSH TO JOHN FROHNMAYER THEN CHAIRMAN OF THE NATIONAL ENDOWMENT FOR THE ARTS AS REPORTED IN THE WASHINGTON POST I AM TROUBLED AS I KNOW YOU ARE BY ALL OF THIS FUROR I DO NOT WANT TO SEE CENSORSHIP YET I DON'T BELIEVE A DIME OF TAXPAYER'S MONEY SHOULD GO INTO ART' THAT IS CLEARLY AND VISIBLY FILTH 9306110091 930611 THE WALL STREET JOURNAL / NBC NEWS POLL WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RICH JAROSLOVSKY ECONOMIC CONFIDENCE WANES WHILE TAX CONCERNS START TO GROW A NEW WALL STREET JOURNAL/NBC NEWS POLL SHOWS FEWER THAN A QUARTER OF AMERICANS EXPECT THE ECONOMY TO GET BETTER OVER THE NEXT YEAR TWICE AS MANY WERE OPTIMISTIC JUST SIX MONTHS AGO ALTHOUGH UNEMPLOYMENT REMAINS BY FAR THE TOP CONCERN 11 NOW SAY FEDERAL TAXES ARE THE MOST IMPORTANT ECONOMIC ISSUE MORE THAN TWICE AS MANY AS SAID SO IN JANUARY BENTSEN BLAMES UNCERTAINTY ABOUT THE CLINTON BUDGET FOR CONSUMER AND BUSINESS WORRIES AND ARGUES THAT SPEEDY SENATE PASSAGE WOULD EASE PUBLIC DOUBTS THE FED NERVOUSLY AWAITING TODAY'S REPORT ON PRODUCER PRICES AND NEXT WEEK'S ON CONSUMER PRICES WORRIES THAT A FAILURE TO DEMONSTRATE ANTIINFLATION RESOLVE WOULD LEAD THE BOND MARKET TO PUSH UP LONGTERM RATES ASKED TO PICK AMONG A GAS TAX A BROADER ENERGY TAX OR A NATIONAL SALES TAX A SURPRISING 46 OF AMERICANS CHOOSE THE LATTER A PAYROLL TAX FOR HEALTH CARE COULD BE POLITICALLY COSTLY THE POLL FINDS THAT ONLY 32 OF AMERICANS BACK A HEALTH PAYROLL TAX WHILE 52 WOULD RATHER MAKE COMPANIES BUY COVERAGE FOR THEIR WORKERS AND RAISE TAXES TO PAY FOR THE UNEMPLOYED AND SMALLBUSINESS EMPLOYEES ONE OPTION UNDER CONSIDERATION LETTING BIG COMPANIES PROVIDE COVERAGE FOR THEIR WORKERS WHILE OTHERS WOULD FACE A PAYROLL TAX MORE THAN HALF OF AMERICANS THINK THEIR HEALTH BILLS WILL RISE UNDER CLINTON'S PLAN ONE IN THREE THINK THE TAB WILL STAY THE SAME AT THE SAME TIME 44 EXPECT THEIR CARE AND COVERAGE TO BE UNCHANGED UNDER A NEW SYSTEM WHILE 28 EXPECT THINGS TO BE WORSE AND 21 BETTER AMERICANS TELL CLINTON THAT IT'S TIME TO START DELIVERING THE POLL SHOWS AMERICANS HAVE A FAVORABLE VIEW OF HIM BY ONLY 44 TO 40 BY TWO TO ONE THEY FEEL HE HAS CHANGED HIS FOCUS FROM THE ISSUES HE CAMPAIGNED ON AND 52 GIVE HIM POOR MARKS ON ACHIEVING HIS GOALS DEMOCRAT PETER HART AND REPUBLICAN ROBERT TEETER WHO CONDUCTED THE POLL SAY SUCH FUNDAMENTAL CONCERNS MAGNIFY SLIPUPS LIKE THE 200 HAIRCUT IF HE GETS HIS PACKAGE THROUGH AND THE ECONOMY STARTS TO PERK UP IT BEGINS TO WIPE OUT THESE MINOR SINS SAYS TEETER BUT IF HE DOESN'T THEN THESE THOUSAND CUTS WILL CONTINUE TO DAMAGE HIM A 37 PLURALITY GIVES CLINTON POOR MARKS ON THE QUALITY OF HIS APPOINTMENTS ONLY 23 GIVE HIM GOOD MARKS AT DEALING WITH CONGRESS TO PACIFY DISGRUNTLED HOUSE LIBERALS HE WILL PUSH IN THE SENATE FOR SOME INNERCITY SPENDING INCREASES AND A BOOST IN THE EARNED INCOMETAX CREDIT CLINTON PLEASES CHINA ON TRADE AMERICANS AREN'T SO SURE CHINESE OFFICIALS ARE PRIVATELY RELIEVED HE DIDN'T IMPOSE TOUGHER CONDITIONS ON ITS MOSTFAVOREDNATION TRADING STATUS BUT THE JOURNAL/NBC POLL FINDS THAT 42 OPPOSE CLINTON'S ACTION WHILE 41 APPROVE OF IT FEELING BETTER THE POLL FINDS THAT 58 NOW DISAGREE THAT THE ECONOMIC AND POLITICAL SYSTEMS ARE STACKED AGAINST PEOPLE LIKE ME PREVIOUSLY THEY HAD AGREED WITH THE STATEMENT BY A NARROW MARGIN THE REASON FOR THE SWITCH A DRAMATIC UPSURGE IN THE NUMBER OF WHITE DEMOCRATS WHO FEEL LESS ALIENATED HEEERE'S JANET HAVING EMERGED AS THE CLINTON CABINET'S UNLIKELY SUPERSTAR ATTORNEY GENERAL RENO IS WOOED TO BE A GUEST ON JAY LENO'S TONIGHT SHOW A RENO AIDE SAYS SHE MAY DO IT THE NEXT TIME SHE IS IN LA IN THE POLL 38 HAVE FAVORABLE VIEWS OF HER WHILE ONLY 13 VIEW HER NEGATIVELY NEXT STEPS GEN POWELL'S PLANS AFTER HE LEAVES THE JOINT CHIEFS CHAIRMANSHIP PLUNGING INTO THE LECTURE CIRCUIT AND PERHAPS JOINING SOME CORPORATE BOARDS BY NO MEANS PRECLUDE A POLITICAL FUTURE THOUGH SOME HARVARD STUDENTS PROTESTED HIS SPEECH YESTERDAY BECAUSE OF HIS STANCE ON GAYS IN THE MILITARY AMERICANS HAVE AN OVERWHELMINGLY POSITIVE VIEW OF HIM 64 TO 6 PEROT ATTRACTS PUBLIC SKEPTICISM AS WELL AS SUPPORT BY 45 TO 42 AMERICANS THINK HE IS CRITICIZING CLINTON FOR POLITICAL REASONS RATHER THAN TO OFFER A REALISTIC ALTERNATIVE A MARKED CHANGE FROM AN APRIL POLL A 44 PLURALITY SEES HIM AS MOTIVATED BY PROSPECTS OF A '96 PRESIDENTIAL RUN TWO MONTHS AGO MORE SAW HIS MOTIVATION AS TRYING TO INFLUENCE POLICY BUT 39 THINK HE WOULD DO BETTER THAN EITHER CLINTON OR DOLE ON ECONOMIC ISSUES 30 SAY CLINTON WOULD DO BEST AND ONLY 22 SAY DOLE THE TEXAN DRAWS STRONGEST SUPPORT AMONG YOUNG ADULTS MEN AND NONVOTERS A HYPOTHETICAL 1996 MATCHUP GIVES CLINTON 35 PEROT 30 AND DOLE 27 DEMOCRATS AND REPUBLICANS STILL STRUGGLE TO FIND THE FORMULA FOR HANDLING HIM NEW CLINTON COUNSELOR GERGEN SEEKS HIM OUT FOR A CHAT BUT OTHER ADVISERS PARTICULARLY POLITICAL AIDE BEGALA DECIDE TO HIT BACK WHEN HE ATTACKS CLINTON MINOR MEMOS DESPITE ALL THE TALK ABOUT HIS HOBNOBBING WITH CELEBRITIES AMERICANS BY 66 TO 25 REJECT THE CHARGE THAT CLINTON HAS GONE HOLLYWOOD WHAT DO MICHAEL JORDAN AND BARRY BONDS HAVE OVER FOLEY AND DOLE THIRTYSEVEN PERCENT BELIEVE PRO ATHLETES ARE THE MOST OVERPAID ALMOST TWICE AS MANY AS PICK MEMBERS OF CONGRESS 9306110090 930611 RAYTHEON SAYS BAE WINS ORDER LEXINGTON MASS RAYTHEON CO SAID A COMPANY IT HAS AGREED TO BUY HAS RECEIVED A 250 MILLION ORDER TO BUILD BUSINESS JETS FOR EXECUTIVE JET AVIATION INC A BUSINESS JET OPERATOR RAYTHEON A DEFENSE AEROSPACE AND APPLIANCE CONCERN WITH 1992 SALES OF 91 BILLION AGREED TO BUY THE COMPANY BAE CORPORATE JETS INC LAST WEEK FROM BRITISH AEROSPACE PLC FOR 250 MILLION 3789 MILLION THE PURCHASE OF THE UNIT WHICH HAS HAD ANNUAL SALES OF ABOUT 400 MILLION IS SUBJECT TO GOVERNMENT REVIEW IN THE US AND BRITAIN AND IS EXPECTED TO BE COMPLETED IN THE NEXT THREE MONTHS THE CONTRACT WITH EXECUTIVE JET AVIATION COLUMBUS OHIO EXTENDS OVER THE NEXT THREE YEARS 9306110089 930611 IPALCO EXTENDS ITS OFFER FOR PSI INDIANAPOLIS IPALCO ENTERPRISES INC EXTENDED ITS 2650ASHARE OR 15 BILLION TENDER OFFER FOR PSI RESOURCES INC UNTIL JULY 30 PSI HAS URGED ITS HOLDERS NOT TO TENDER THEIR SHARES TO IPALCO THE PLAINFIELD IND UTILITY HOLDING CONCERN INSTEAD WANTS TO PURSUE PLANSANNOUNCED IN DECEMBER TO MERGE WITH CINCINNATI GAS & ELECTRIC CO 9306110088 930611 FIRST UNION PLANS MAJOR EXPANSION IN FINANCIAL LINES BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL FIRST UNION CORP PLANS TO TRAIN 2600 STAFFERS TO SELL MUTUAL FUNDS AND ANNUITIES IN ITS 1400 BRANCHES BY THE THIRD QUARTER OF 1994 IN ONE OF THE MOST AGGRESSIVE MOVES BY A BANKING COMPANY TO EXPAND INTO FINANCIAL SERVICES FIRST UNION CHARLOTTE NC ALSO PLANS TO DOUBLE ITS STAFF OF TRAINED STOCKBROKERS TO 225 BY YEAR END THE COMPANY SAID IT INTENDS TO BOOST ITS MUTUALFUND ASSETS AND IS CONSIDERING BUYING EXISTING FUNDS FIRST UNION SAID IT INTENDS TO INCREASE ITS GROUP OF MUTUAL FUNDS TO 25 BILLION IN THE NEXT FIVE YEARS FROM THE CURRENT 3 BILLION IN HOLDINGS PREVIOUSLY THE COMPANY HAD SET THAT TARGET AT 10 BILLION EDWARD E CRUTCHFIELD JR CHAIRMAN AND CHIEF EXECUTIVE SAID FIRST UNION NOW IS EXPLORING THE PURCHASE OF EXISTING MUTUAL FUNDS BUT THE OBSTACLE IT FACES IS THAT MUTUAL FUNDS ARE SELLING AT HIGHER MULTIPLES TO EARNINGS THAN BANKS ARE BY BROADENING ITS FINANCIAL SERVICES THE BANK HOPES IT WILL RETAIN CUSTOMERS WHO WOULD ORDINARILY TAKE THEIR FUNDS TO OUTSIDE BROKERAGE FIRMS ANALYSTS LAUD THE EFFORT AS AN AGGRESSIVE WAY TO GAIN BUSINESS AND EXPAND INTO THE SWIFTLY GROWING MUTUAL FUND BUSINESS THEY ADD THAT ANY CANNIBALIZATION OF CURRENT DEPOSITS IS LIKELY TO BE OUTWEIGHED BY ADDITIONAL INVESTMENT BUSINESS THEY ALSO EXPECT MOST BANKS TO BE INVOLVED IN THE MUTUALFUND BUSINESS IN THE FUTURE WE DON'T WANT TO LOSE CUSTOMERS WHEN THEY LOOK FOR ANOTHER TYPE OF INVESTMENT SAID BARBARA COLVIN VICE PRESIDENT OF RETAIL INVESTMENT PROFIT MARGINS FROM ONE PRODUCT TO ANOTHER IS IRRELEVANT KEEPING CUSTOMERS' BUSINESS IN THE FAMILY IS ABSOLUTELY PARAMOUNT FIRST UNION IS ONE OF A NUMBER OF BANKS THAT ARE TRYING TO EXPAND THEIR PRESENCE IN MUTUAL FUNDS AND OTHER INVESTMENT SERVICES AS A WAY TO RETAIN CUSTOMERS AND BOOST PROFITS BANC ONE CORP COLUMBUS OHIO IS OPENING 400 PERSONAL INVESTMENT CENTERS THIS YEAR AND 400 NEXT YEAR AT ITS 1500 BRANCHES A SPOKESMAN SAID AS PART OF A JOINT VENTURE BETWEEN NATIONSBANK CORP AND DEAN WITTER DISCOVER & CO NATIONSBANK BEGAN THIS MONTH TO ASSIGN STOCKBROKERS TO SOME OF ITS 1750 BRANCHES AND EXPECTS TO HAVE 600 BROKERS IN PLACE BY YEAR END NATIONSBANK CHARLOTTE NC ALSO IS PLANNING TO BUILD ITS 10 BILLION IN MUTUAL FUND ASSETS TO 100 BILLION BY THE END OF THE DECADE EXECUTIVES HAVE SAID 9306110087 930611 ECONOMY ONCE AGAIN US BUSINESS EXECUTIVES ARE TO TAKE PART IN JAPAN TRADE TALKS BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HOPING TO PRESENT A UNITED FRONT ON TRADE PLANS TO INCLUDE AT LEAST FIVE US BUSINESS EXECUTIVES IN THE OPENING ROUND OF TALKS ON OPENING JAPANESE MARKETS A SOMEWHAT SIMILAR EFFORT BY PRESIDENT BUSH ENDED IN A PUBLIC RELATIONS DISASTER EARLY LAST YEAR THEN MR BUSH INVITED BIG THREE AUTO EXECUTIVES AND OTHER INDUSTRY LEADERS TO ACCOMPANY HIM ON A TRIP TO JAPAN WHICH MADE THE PRESIDENT SEEM LIKE A CAR SALESMAN AND NOT A PARTICULARLY GOOD ONE AT THAT THIS TIME THE EFFORT IS CONSIDERABLY LESS CONSPICUOUS A SENIOR ADMINISTRATION OFFICIAL SAID THE EXECUTIVES WILL BE INVITED TO A DINNER WITH JAPANESE OFFICIALS TONIGHT DURING THE FIRST ROUND OF NEGOTIATIONS IN ORDER TO CONDUCT BROADER DISCUSSIONS ON ECONOMIC RELATIONS WITH JAPAN THE EXECUTIVES INVITED INCLUDE GEORGE FISHER CHAIRMAN OF MOTOROLA INC A MAKER OF SEMICONDUCTORS AND CELLULARTELEPHONE EQUIPMENT MAURICE GREENBERG CHAIRMAN OF AMERICAN INTERNATIONAL GROUP INC AN INSURANCE COMPANY HAROLD POLING CHAIRMAN OF FORD MOTOR CO JOHN SCULLEY CHAIRMAN OF APPLE COMPUTER INC AND JOHN REILLY PRESIDENT OF TENNECO INC'S AUTOMOTIVE PARTS DIVISION HAVING BUSINESS LEADERS REFLECTS SOLDIARITY WITH THE ADMINISTRATION SAID MR REILLY THERE IS A PROBLEM AND WE'RE ALL CONCERNED SENIOR ADMINISTRATION OFFICIALS STRESSED THE BUSINESS EXECUTIVES WOULDN'T BE NEGOTIATING FOR THE US OR FOR THEIR COMPANIES WHICH HAVE ALL HAD PROBLEMS CRACKING JAPAN'S MARKET BUT THE COMPANIES APPEAR TO HAVE BEEN SELECTED CAREFULLY TO ILLUSTRATE ADMINISTRATION DEMANDS DURING THE TWODAY TALKS THE CLINTON TEAM WILL PRESENT JAPAN WITH A PLAN TO CONDUCT FIVE PARALLEL NEGOTIATIONS OVER THE NEXT YEAR WITH THE GOAL OF LIBERALIZING THE JAPANESE MARKET THE AREAS WOULD INCLUDE COMPLIANCE WITH PRIOR TRADE AGREEMENTS GOVERNMENT PROCUREMENT REGULATED INDUSTRIES AUTOS AND AUTO PARTS AND TECHNOLOGY AND FOREIGN INVESTMENT EACH OF THE COMPANIES ILLUSTRATES MAJOR PROBLEMS ENCOUNTERED BY US COMPANIES IN THOSE NEGOTIATING CATEGORIES APPLE COMPUTER COMPLAINS THAT IT IS SHUT OUT OF THE JAPANESE PROCUREMENT MARKET AIG ARGUES THAT THE JAPANESE GOVERNMENT REGULATES THE INSURANCE INDUSTRY IN A WAY THAT DISCRIMINATES AGAINST FOREIGN COMPANIES MOTOROLA SPENT YEARS BATTLING JAPANESE REGULATORS TO OPEN THE JAPANESE CELLULARTELEPHONE MARKET AND PUSHED FOR AN ACCORD THAT SET ASIDE 20 OF THE SEMICONDUCTOR MARKET FOR FOREIGN CONCERNS FORD AND TENNECO COMPLAIN US COMPANIES CAN'T CRACK THE JAPANESE AUTO MARKET THE US AUTO PARTS INDUSTRY IS COMPETITIVE ON A GLOBAL BASIS AND HAS A CLEAR COST ADVANTAGE OVER THE JAPANESE INDUSTRY SAID MR REILLY THAT NEEDS TO BE VERBALIZED AT THE DINNER A SECOND ROUND IS SCHEDULED FOR TOKYO JUNE 27 AND 28 AT THAT TIME JAPANESE EXECUTIVES MAY ATTEND TO PRESS THEIR CASE SAID US OFFICIALS THE US WANTS JAPAN TO AGREE TO A NEGOTIATING AGENDA BY THE JULY 7 SUMMIT IN TOKYO OF HEADS OF STATE OF SEVEN BIG INDUSTRIALIZED COUNTRIES 9306110086 930611 THE AMERICAS BOLIVIA'S NEW GENERATION TAKES OVER THE HELM BY NICHOLAS ASHESHOV LA PAZ A CLEAR PRESIDENTIAL VICTORY IS NOW GUARANTEED FOR THE GRINGOACCENTED SELFMADE MINING MILLIONAIRE GONZALO SANCHEZ DE LOSADA FORMER DICTATOR GEN HUGO BANZER AND OTHER RIVALS HAVE CONCEDED DEFEAT TO THE MAN WHO PLANS TO PRIVATIZE BOLIVIA'S STATE COMPANIES BY ISSUING 51 OF THEIR NEW TRADABLE SHARES TO BOLIVIAN CITIZENS AND SELLING THE REMAINDER OF THE SHARES IN OPEN BIDDING HOWEVER WHILE MR SANCHEZ DE LOSADA MAY STEP UP THE PACE OF MODERNIZING A COUNTRY WITH AN AVERAGE ANNUAL PER CAPITA INCOME OF 850 HE OWES A DEBT OF GRATITUDE TO THE ECONOMIC TEAM OF HIS PREDECESSOR JAIME PAZ ZAMORA IN FACT NO PRESIDENTIAL TEAM BEFORE MR PAZ HAS DONE MORE TO SWEEP OUT THE OLD GUARD AND PAVE THE WAY FOR A MODERN COMPETITIVE ECONOMY OLD GUARD IS NOT JUST A FIGURE OF SPEECH PABLO ZEGARRA MR PAZ'S FINANCE MINISTER CELEBRATED HIS 29TH BIRTHDAY HERE A FEW MONTHS AGO AND THOUGH HE'S THE YOUNGEST MEMBER OF THE CABINET HALF A DOZEN OF HIS COLLEAGUES ARE IN THEIR LOW AND MID30S THIS CROWD OF YOUNG FREEMARKETORIENTED REFORMERS HAS MANAGED TO PUSH INFLATION NOW AT A 7 ANNUAL RATE TO LEVELS LOWER THAN IN CHILE OR MEXICO AND IT'S THE FIRST TIME SOUTH AMERICA HAS SEEN SINGLE DIGITS IN A GENERATION GROWTH CLOCKED IN AT A MIDDLING 38 FOR 1992 BUT SAMUEL DORIA MEDINA 34 THE LONDON SCHOOL OF ECONOMICSEDUCATED PLANNING MINISTER SAYS THAT GROSS DOMESTIC PRODUCT IS HEADED FOR A 5 INCREASE THIS YEAR THESE ARE THE LATEST ITEMS IN A SOLID EIGHTYEAR TREND AND IT'S NOT BEING DONE WITH BANKERS' MIRRORS IT'S BEING DONE BY THE KIND OF GIVEANDTAKE DEMOCRACY THAT HAS NEVER BEEN IN FASHION IN SOUTH AMERICA THIS MAY SOUND EMBARRASSINGLY STARRYEYED AND THE DESCRIPTION OF BOLIVIA AS A PARLIAMENTARY DEMOCRACY BY HARVARD ECONOMIST JEFFREY SACHS MAY SIMILARLY BE OVER THE TOP HOWEVER THERE'S NO QUESTION THAT THE KIND OF STABILITY THAT BOLIVIA HAS ACHIEVED OVER THE PAST SEVERAL YEARS IS TIED DIRECTLY TO CONSENSUS POLITICS THIS WEEK'S CONCESSIONS BY GEN BANZER AND THE OTHER CANDIDATES AFTER MR SANCHEZ DE LOSADA WON A PLURALITY OF 36 IN A CROWDED FIELD ARE THE CLEAREST PROOF YET OF SUCH POLITICAL MATURITY BEHIND BOLIVIA'S IMPRESSIVE ECONOMIC PERFORMANCE AND PLEASANT POLITICAL PROSPECTS THERE'S SOMETHING MORE INTERESTING AFOOT A TOUGH YOUNG CROWD OF BUSINESSMEN BANKERS AND POLITICOS MANY OF THEM SPORTING MBAS AND MAS FROM THE US AND EUROPE HAS TAKEN OVER FROM THE TECHNOCRATS AND THE OLDSTYLE POLITICOS WHO ONCE HIRED THEM DURING THE LOST DECADE OF THE 1980S YOUNG PEOPLE SUCH AS THESE RARELY RETURNED TO LATIN AMERICA AFTER THEIR FOREIGN TRAINING BUT THEY ARE NOW BEING DRAWN BACK BY THE CHALLENGE OF SUBSTANTIVE OFFERS IN THE GOVERNMENT AND PRIVATE SECTORS IT HAS BEEN A DELIBERATE EXPERIMENT AND A GOOD ONE SAYS MR DORIA MEDINA THE PLANNING MINISTER A LOT OF YOUNG PEOPLE HAVE RETURNED FROM ABROAD BECAUSE THEY SENSE THAT THERE'S A CHANGE OF ATMOSPHERE A CHANGE OF DIRECTION MR DORIA MEDINA RECALLS THAT WHEN HE TOOK OVER THE ECONOMIC CABINET A COUPLE OF YEARS AGO HIS YOUTH CAUSED A LOT OF COMMENT BUT IT SEEMS TO HAVE WORKED AND NOW EVERYONE'S USED TO THE IDEA THAT PEOPLE OF OUR GENERATION CAN BE IN CHARGE THE NEW CROWD TENDS NOT TO HAVE MUCH TIME FOR THE WORLD BANKERS IMFERS AND INTERAMERICAN DEVELOPMENT BANKERS SO CLEARLY ASSOCIATED WITH THE STATIST 1970S AND THE LOST 1980S SNORTS JORGE QUIROGA 32 THE FINANCE MINISTER UNTIL A FEW MONTHS AGO YOU SPEND MORE ON FAXES TO WASHINGTON THAN ON LOAN PAYMENTS THESE YOUNG MEN PREFER TO GET RIGHT DOWN TO BUSINESS RONALD MACLEAN 43 THE HARVARDEDUCATED FOREIGN MINISTER SAYS CABINET MEETINGS TEND TO BE LIKE MANAGEMENT MEETINGS IN THE STATES OUTSIDE OF GOVERNMENT THE DOZEN OR SO BUSINESS AND BANKING GROUPS THAT DOMINATE FINANCIAL LIFE IN LA PAZ OR IN SANTA CRUZ THE TOUGH RANCHING AND OIL TOWN THAT'S THE FINANCE CENTER FOR THE EASTERN LOWLANDS INVARIABLY BOAST A CLUTCH OF NEW MBAS AND MAS OFTEN THE CHILDREN OF THE FOUNDERS OF THE BUSINESSES CRISTOBAL RODA 35 MANAGES HIS FAMILY'S MANUFACTURING BANKING MEDIA AND AGRICULTURAL BUSINESS WITH 40 MILLION IN ASSETS AND 1800 PEOPLE ON THE PAYROLL THE MENTALITY HAS ENTIRELY CHANGED IN BOLIVIA HE SAYS WITH BROTHERS AND SISTERS TRAINED IN THE US AND BRAZIL MR RODA SHIPS PLYWOOD VENEERED WITH TROPICAL HARDWOODS TO GERMANY EXPORTS CERAMIC TILES MADE IN A COMPUTERCONTROLLED NATURALGASPOWERED PLANT TO BRAZIL AND GROWS SOYBEANS CORN AND COTTON FOR SUMMER CROPS AND WHEAT AND SUNFLOWERS IN WINTER CARLOS KEMPFF 28 WROTE HIS MBA THESIS AT MIT ON THE POTENTIAL FOR SOYBEANS IN BOLIVIA'S VAST EASTERN LOWLANDS TODAY HE'S RUNNING THE BIGGEST EDIBLE OIL FACTORY IN SANTA CRUZ AND EXPANDING IT FOURFOLD HERBERT MULLER 39 THE MINISTER OF ENERGY AND THE HOLDER OF AN MBA FROM THUNDERBIRD ARIZ TALKS OF BOLIVIA'S OIL AND GAS FIELDS AS PART OF A POWER NETWORK JOINING BOLIVIA BRAZIL ARGENTINA CHILE AND PERU BOLIVIA AND BRAZIL HAVE JUST SIGNED CONTRACTS FOR A 15 BILLION GAS PIPELINE TO FEED THE FACTORIES OF SAO PAULO THIS IS RESHAPING THE CONTINENT HE SAYS ROBERTO PENA WHO RUNS THE COUNTRY'S TOP FOOD PROCESSING COMPANIES AND IS MINISTER WITHOUT PORTFOLIO IN THE CABINET SAYS WE'VE ALWAYS HAD A FREE MARKET SYSTEM HERE REFERRING TO THE SMUGGLING THAT'S BEEN A FEATURE OF BOLIVIAN COMMERCIAL LIFE AS A RESULT OF OVERREGULATION TODAY MR PENA IS IN CHARGE OF REDUCING PAPERWORK WITHIN THE GOVERNMENT THE CONNECTION BETWEEN THE CABINET AND BUSINESS SECTOR IS STRIKING MOST OF THE YOUNG CABINET MINISTERS HAVE COME FROM THE PRIVATE SECTOR FERNANDO CAMPERO 37 MINISTER FOR EXPORTS CAUGHT PRESIDENT PAZ'S EYE WHEN HE SOLD THE CABINET A STACK OF THE CELLULAR PHONES HE HAD JUST INSTALLED IN LA PAZ MR DORIA MEDINA HIMSELF RETURNED FROM LONDON TO RESCUE THE FAMILY CEMENT BUSINESS WHICH HAD BEEN FINANCIALLY RUINED LIKE MOST OTHER COMPANIES DURING THE '80S SAYS MR DORIA MEDINA WE ARE PEOPLE WHO'VE STUDIED ABROAD AND SAW HOW THINGS WERE RUN UNDER THE MILITARY TWO OR THREE GENERATIONS OF PEOPLE LIKE US DIDN'T TAKE PART IN RUNNING OUR COUNTRIES AND THINGS GOT VERY BAD THINGS IN BOLIVIA ARE STILL NOT GREAT MOST OF BOLIVIA'S 63 MILLION PEOPLE ARE DREADFULLY POOR AND MANY ESPECIALLY WOMEN ARE ILLITERATE IT'S OBVIOUSLY NAIVE TO THINK THAT MBA TYPES WITH THEIR EYES ON THE BOTTOM LINE CAN CHANGE THINGS QUICKLY BUT THEIR FOCUS ON DEALS MANAGEMENT AND GROWTH SEEMS TO BE PROVIDING A STABLE CONTRAST TO THE ROCKTHEBOAT POPULISTS WHO HAVE DOMINATED THE CONTINENT FOR SO LONG MR ASHESHOV IS EDITOR OF THE ANDEAN REPORT IN LIMA PERU AND THE SOUTH PACIFIC MAIL IN SANTIAGO CHILE 9306110085 930611 DIVIDEND NEWS SIMMONS'S VALHI SUSPENDS 5 CENTS QUARTERLY PAYOUT BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS VALHI INC A HOLDING COMPANY CONTROLLED BY DALLAS FINANCIER HAROLD C SIMMONS SAID IT SUSPENDED PAYMENT OF ITS FIVECENTSASHARE QUARTERLY COMMON STOCK DIVIDEND LOSSES AT TWO AFFILIATES TRIGGERING DIVIDEND RESTRICTIONS IN A DEBT COVENANT WERE BLAMED THE AFFILIATES NL INDUSTRIES INC 49OWNED BY VALHI AND TREMONT CORP 48OWNED ACCUMULATED LOSSES TOTALING 1854 MILLION BETWEEN JAN 1 1991 AND MARCH 31 1993 VALHI SAID VALHI ITSELF REPORTED A FIRSTQUARTER NET LOSS OF 603 MILLION OR 53 CENTS A SHARE THE RESTRICTIONS IMPOSED BY VALHI'S 125 SENIOR SUBORDINATED NOTES DUES 1998 PREVENT A DIVIDEND PAYMENT IN THE EVENT OF A NET LOSS ANALYSTS SAID VALHI'S MOVE WAS EXPECTED INDEED THE STOCK PRICE CLOSED AT 4125 A SHARE UP 25 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY CRAIG GILMORE PRESIDENT OF GILMORE & CO A CARLSBAD CALIF INVESTMENT FIRM SAID THE PAYOUT SUSPENSION SHOULD NOT RAISE ANY RED FLAGS MR GILMORE CALLED IT A REFLECTION OF THE WEAKNESS IN NL INDUSTRIES AND TREMONT WHICH HE EXPECTS WILL TURN AROUND AS THE EUROPEAN ECONOMY BEGINS TO STRENGTHEN IF I WERE A STOCKHOLDER I WOULDN'T BE REAL WORRIED HE SAID WILLIAM C TIMM VALHI'S VICE PRESIDENT FINANCE AND ADMINISTRATION SAID THE COMPANY IS EXPLORING A VARIETY OF ALTERNATIVES THAT WILL RELIEVE THE DIVIDEND RESTRICTION THE MOST LIKELY ALTERNATIVE MR TIMM SAID IS TO REFINANCE THE 135 MILLION STILL OUTSTANDING ON THE 125 NOTES VALHI'S VALCOR INC SUBSIDIARY RECENTLY FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO SELL 125 MILLION IN NEW NOTES MR TIMM SAID THE COMPANY PROBABLY WOULD USE 100 MILLION OF THOSE PROCEEDS WITH 35 MILLION IN COMPANY CASH TO RETIRE THE OUTSTANDING NOTES THEREBY QUASHING THE DIVIDEND RESTRICTION IN A NEWS RELEASE LAST MONTH THE COMPANY BLAMED THE LOSSES AT NL INDUSTRIES AND TREMONT ON RECESSIONARY ECONOMIC CONDITIONS PARTICULARLY IN THE EUROPEAN MARKET WHERE PRICE WEAKNESS EXISTS FOR NL'S PRIMARY PRODUCT TITANIUM DIOXIDE PIGMENTS USED IN A VARIETY OF CONSUMER PRODUCTS AS A WHITENER/BRIGHTENER TREMONT MAKES TITANIUM METALS USED IN THE MUCHBATTERED AEROSPACE DEFENSE AND COMMERCIAL AVIATION INDUSTRIES VALHI A HOLDING COMPANY IS ABOUT 90CONTROLLED BY MR SIMMONS THE FINANCIER ONCE OWNED 198 OF LOCKHEED CORP BUT INCURRED A 42 MILLION LOSS IN THE ENSUING PROXY BATTLE FOR CONTROL OF THE NATION'S SIXTHLARGEST DEFENSE COMPANY TODAY VALHI IS ENGAGED IN REFINED SUGAR FOREST PRODUCTS FASTFOOD AND HARDWARE PRODUCTS 9306110084 930611 WHO'S NEWS CHRYSLER'S GALE ASSUMES RESPONSIBILITY FOR GLOBAL OPERATIONS IN RESHUFFLING BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL HIGHLAND PARK MICH CHRYSLER CORP'S VICE PRESIDENT FOR DESIGN THOMAS C GALE WAS GIVEN ADDITIONAL RESPONSIBILITY FOR THE AUTO MAKER'S GROWING INTERNATIONAL OPERATIONS APPARENTLY TO GROOM HIM FOR A BIGGER ROLE IN THE COMPANY THE HIGHLY REGARDED MR GALE WHO WILL TURN 50 NEXT WEEK COULD POTENTIALLY SUCCEED CHRYSLER'S 61YEAROLD PRESIDENT ROBERT A LUTZ BUT MR GALE WILL FACE STIFF COMPETITION FOR THAT POST FROM A GENERATION OF BABYBOOM VICE PRESIDENTS WHO RUN CHRYSLER'S DAYTODAY OPERATIONS THEY INCLUDE FRANCOIS J CASTAING HEAD OF ENGINEERING THOMAS T STALLKAMP HEAD OF PURCHASING AND THEODOR R CUNNINGHAM AN EXECUTIVE VICE PRESIDENT FOR SALES AND MARKETING WHO ALSO WAS GIVEN NEW RESPONSIBILITIES YESTERDAY IN A SHIFT OF RESPONSIBILITIES AMONG THREE VICE PRESIDENTS MR CUNNINGHAM 47 WAS NAMED TO THE ADDITIONAL POST OF GENERAL MANAGER FOR THE MINIVAN PLATFORM A POSITION PREVIOUSLY HELD BY MR GALE THE THIRD MAN INVOLVED IN THE SHUFFLE JOSEPH CAPPY MOVES FROM RUNNING INTERNATIONAL OPERATIONS TO TAKE CHARGE OF CHRYSLER TECHNOLOGIES AND CHRYSLER'S RENTAL CAR OPERATIONS CHRYSLER TECHNOLOGIES IS THE REMNANT OF THE COMPANY'S ILLFATED DIVERSIFICATION MOVE IN THE LATE 1980S THE CHANGES RESULT IN A LESSER ROLE FOR MR CAPPY CHRYSLER WATCHERS GIVE HIM HIGH MARKS FOR STEERING THE COMPANY'S FLEDGLING INTERNATIONAL BUSINESS THROUGH SEVERAL YEARS OF RAPID GROWTH BUT AT AGE 59 MR CAPPY WASN'T EXPECTED TO RISE HIGHER AT CHRYSLER AND HIS MOVE NOW GIVES MR GALE A CHANCE TO GREATLY BROADEN HIS EXPERIENCE WE'VE GOT SOME PRETTY YOUNG SENIOR GUYS AND THIS GIVES THEM DIFFERENT EXPERIENCE THEY DIDN'T HAVE BEFORE A CHRYSLER SPOKESMAN SAID MR GALE'S AWARDWINNING DESIGNS INCLUDE THE SLEEK CABFORWARD LOOK OF CHRYSLER'S LH SEDANS THE ROUNDED JEEP GRAND CHEROKEE AND THE MACHO DESIGN OF CHRYSLER'S NEW DODGE RAM PICKUP WHAT'S MORE UNDER MR GALE CHRYSLER'S INTERIORS HAVE BEEN TRANSFORMED THE AUTO MAKER HAS DEVELOPED A REPUTATION FOR SMOOTH CONTROLS AND FOR EQUIPPING ITS CARS WITH UTILITARIAN CUPHOLDERS AND THOUGHTFUL STORAGE UNITS DESIGNED TO HOLD SUNGLASSES OR CLIPBOARDS MR GALE IS LEAVING HIS ROLE AS HEAD OF THE MINIVAN TEAM AFTER MUCH OF THE DESIGN WORK ON THE PRODUCT HAS BEEN COMPLETED LATE LAST MONTH CHRYSLER SHOWED EMPLOYEES THE FIRST WORKING PROTOTYPE OF ITS NEW MINIVAN MR CUNNINGHAM WHO HAS WIDE MARKETING EXPERTISE WILL BE RESPONSIBLE FOR THE LAUNCH OF CHRYSLER'S NEXT MINIVAN THE COMPANY'S CORE PRODUCT IT IS SCHEDULED TO DEBUT IN THE SPRING OF 1995 AND WILL FEATURE DOORS THAT SLIDE OPEN ON BOTH SIDES 9306110083 930611 BUSINESS BRIEF EXABYTE CORP HOLDER SUIT FILED LAST YEAR AGAINST FIRM IS DISMISSED EXABYTE CORP BOULDER COLO SAID A FEDERAL COURT IN DENVER AGREED TO DISMISS A SHAREHOLDER SUIT FILED AGAINST THE COMPANY LAST YEAR THE MAKER OF DATASTORING TAPE CARTRIDGE SYSTEMS WAS SUED IN SEPTEMBER BY SHAREHOLDERS ACCUSING THE COMPANY OF FALSELY HYPING ITS FINANCIAL PROSPECTS THE SUIT CAME ON THE HEELS OF A SHARP DROP IN EXABYTE STOCK FOLLOWING NEWS THAT ITS 1992 THIRDQUARTER EARNINGS WOULD FALL FAR BELOW ANALYSTS' ESTIMATES STEVE SMITH THE COMPANY'S GENERAL COUNSEL SAID THE SUIT WAS DISMISSED BY JOHN L KANE JR A SENIOR DISTRICT COURT JUDGE IN DENVER AFTER THE HOLDERS FAILED TO ESTABLISH THEY HAD AN ACTIONABLE CLAIM ATTORNEYS FOR THE SHAREHOLDERS COULDN'T BE REACHED 9306110082 930611 PUBLISHING PROBLEM MORE BRITONS WRITE POETRY THAN READ IT PAUL HAM'S POEM ON THE CRASH OF 1987 BOMBED IN STORES BUT AUTHOR IS UNDETERRED BY RICHARD L HUDSON STAFF REPORTER OF THE WALL STREET JOURNAL THIS SIMPLE TALE OF MONEY LUST AND GREED LONDON MANY PEOPLE REMEMBER OCT 19 1987 AS THE DAY THE STOCK MARKET CRASHED THE DOW JONES INDUSTRIAL AVERAGE DIVED 508 POINTS AND GREAT FORTUNES CHANGED HANDS TO PAUL HAM IT WAS A DAY OF EPICPOETRY PROPORTIONS INSPIRED BY THE CRASH THE FINANCIAL JOURNALIST AND PARTTIME POET WHO IS NOW 32 SAT DOWN TO WRITE A MOCKHEROIC EPIC POEM ABOUT IT NOW NEARLY SIX YEARS LATER HE HAS PUBLISHED THE RESULT INSOLVENCY WEEK 192 HARDBOUND SOMETIMES HARDGOING PAGES OF VERSE ABOUT CORPORATE RAIDERS MERCHANT BANKERS AND HAPLESS INVESTORS WHAT'S MORE NEARLY ALL ITS 5000 LINES ARE COMPOSED IN HEROIC COUPLETS RHYMING PAIRS OF IAMBIC PENTAMETER LINES A POETIC STYLE POPULAR IN CHAUCER'S DAY MR HAM SAYS HE FINDS MODERN POETRY OFFENSIVE THIS EXTRAORDINARY LITERARY EVENT HASN'T GONE UNNOTICED ONE OF THOSE IMPRESSIVE BUT PECULIARLY POINTLESS ACHIEVEMENTS AKIN TO BUILDING A SCALE MODEL OF THE TAJ MAHAL OUT OF MATCHSTICKS WROTE AN UNCHARITABLE REVIEWER IN THE TIMES OF LONDON AT LEAST THE BOOK GOT REVIEWED THE PUBLIC VERDICT 336 COPIES SOLD OH WELL ANOTHER DAY ANOTHER POET IN BRITAIN IN SOME COUNTRIES PEOPLE PLAY GOLF GO TO KARAOKE BARS OR WATCH PAINT DRY IN THEIR SPARE TIME IN THIS OSTENTATIOUSLY LITERARY COUNTRY THOUSANDS OF WOULDBE DRYDENS AND POPES LIKE MR HAM COMMIT THEIR SPARE EVENINGS PENNIES AND HOPES TO WRITING VERSE AND GETTING IT SOMEHOW INTO PRINT THERE'S AN ENORMOUS AMOUNT OF POETRY WRITING GOING ON IN BRITAIN SAYS JANE FEAVER AN ASSISTANT TO THE POETRY EDITOR OF FABER & FABER LTD A BRITISH PUBLISHER OF WHICH TS ELIOT WAS A DIRECTOR THE FIRM GETS 30 TO 40 POETRY MANUSCRIPTS A WEEK FOR CONSIDERATION SOME VERY GOOD IN HER OPINION BUT MOST AWFUL A LOT OF PEOPLE TREAT POETRY AS A THERAPY FOR WORKING OUT THEIR PROBLEMS WHAT MUST THAT SAY ABOUT BRITAIN THE NUMBER OF NEW POETRY BOOKS PUBLISHED HERE ANNUALLY HAS NEARLY DOUBLED IN FIVE YEARS TO 1349 FAR OUTDISTANCING US OUTPUT ESTIMATED AT NO MORE THAN 830 BY PUBLISHERS' WEEKLY NOTABLE 1992 TITLES INCLUDE THE GAME TENNIS POEMS LOVE AT FIRST BYTE AND CELLOS IN HELL NO RELATION TO A COMPETING VOLUME GOD'S TROMBONES SOME BLAME THE RECESSION AND UNEMPLOYMENT FOR INSPIRING ALL THIS POETRY JOBLESSNESS AFFORDS TIME TO WRITE POEMS BUT THE SPURT NOTWITHSTANDING POETRY HAS LONG BEEN PART OF BEING BRITISH THE NEW YORK SUBWAY HAS LATELY TAKEN A CUE FROM THE LONDON UNDERGROUND WHICH FESTOONS ITS TRAINS WITH POSTERS OF POEMS RIGHT ALONGSIDE THE ANTACID AND DATINGSERVICE ADS IT SEEMS THERE IS THIS GROUNDSWELL NEED FOR EXPRESSION THAT'S BUILT INTO THE CULTURE SAYS DAVID REEVES MR REEVES A SELFSTYLED COMMUNITY ARTIST IN ENGLAND'S INDUSTRIAL HEARTLAND NEAR BIRMINGHAM HAS BEEN SPENDING HIS DAYS EXPRESSING HIMSELF IN CHALK ON SIDEWALKS AND CITY STREETS FOR A LOCAL ARTS FESTIVAL HIS MASTERPIECE THOUGH IS A COLLECTION OF POEMS ABOUT ILLNESS THAT HE INVITED PATIENTS IN A BIG CLINIC TO CONTRIBUTE TO THE ANTHOLOGY CALLED PRESCRIBED READING IS NOW KEPT IN THE DOCTORS' WAITING ROOM AND HAS SECTIONS ON PARTICULAR AILMENTS THE COMMONCOLD CHAPTER INCLUDES A PERFORMANCE PIECE WRITTEN ON A TISSUE HE SAYS ALSO IN THE WAITING ROOM MR REEVES DANGLED A CARDBOARD SIGN INSCRIBED WITH VERSE A SAMPLE BUT FOR ALL THE POETIC FERMENT IN BRITAIN JUST NOW THERE IS NO GUARANTEE THAT ANYBODY IS ACTUALLY READING IT EXCEPT POETSAND YOU CAN'T BE TOO SURE ABOUT THEM MORE AND MORE POETRY IS BEING PUBLISHED BUT SALES ARE FLAT TO UNINSPIRING POETRY REVIEW THE BIGGEST BRITISH JOURNAL GETS 30000 SUBMISSIONS A YEAR BUT HAS JUST 5000 SUBSCRIBERS SAYS ASSISTANT EDITOR KEVAN JOHNSON THE ECONOMICS OF THIS DON'T MAKE SENSE IF EVERYBODY WHO WROTE POETRY BOUGHT THE BOOKS THEN IT WOULD BE A THRIVING CULTURE HE LAMENTS A LOT OF PEOPLE WRITE POETRY BUT THEY DON'T READ MR HAM THE WOULDBE POET LAUREATE OF THE STOCK MARKET ISN'T THE SORT OF MAN TO BE DISCOURAGED BY SUCH TALK I NEVER BELIEVED I'D HAVE A WIDE READERSHIP HE SHRUGS HIS LITERARY TRAINING WAS ECLECTIC HE HAILS FROM AUSTRALIA WHERE HE REVIEWED NEW BULLDOZERS FOR EARTHMOVER MAGAZINE A CONSTRUCTIONINDUSTRY TRADE JOURNAL AFTER 14 YEARS IN BRITAIN HE NOW DIVIDES HIS TIME BETWEEN EDITING THE UK MEMBERS' MAGAZINE OF AMNESTY INTERNATIONAL AND SERVING AS CONSULTING EDITOR OF OFFSHORE FINANCIAL REVIEW MOUTHPIECE OF THE INTERNATIONAL TAXAVOIDANCE INDUSTRY HE JESTS MR HAM'S MUSE APPARENTLY USES A FILOFAX ORGANIZER TO SCHEDULE HER VISITATIONS FOUR HOURS A NIGHT DAY AFTER DAY MONTH AFTER MONTH MR HAM SCRIBBLED AT HOME CREATING HIS EPIC HIS ROUTINE HE SAYS WAS TO WRITE 30 LINES ONE NIGHT REWRITE THEM THE FOLLOWING NIGHT AND THEN MOVE ON TO THE NEXT 30 LINES THE NIGHT AFTER THAT THEN HE REWROTE THE WHOLE POEM TWICE MORE HOPING TO INTEREST A PUBLISHER FOURTEEN TURNED HIM DOWN FINALLY HE PAID NEARLY 7000 TO HAVE IT PUBLISHED PRIVATELY ONLY TO HAVE THE SMALL VANITY PRESS HE SELECTED GO OUT OF BUSINESS WITH HIS BOOKS PRINTED AND SITTING IN A WAREHOUSE THE BOOK DID COME OUT AND HE GOT HIS REVENGE ON THE PUBLISHING INDUSTRY THE ENCOMIUMS HE INCLUDED ON THE DUST JACKET ARE QUOTATIONS HE SELECTIVELY LIFTED FROM POLITE REJECTION LETTERS PUBLISHERS HAD SENT HIM TWO EXAMPLES HIS BOOK SET IN LONDON ON THE EVE OF THE WORLDWIDE '87 CRASH TELLS OF A FICTITIOUS HOSTILE TAKEOVER ATTEMPT BY A MARAUDING AUSTRALIAN PRESS BARON BRAZEN BLUE A CARICATURE OF RUPERT MURDOCH ALAN BOND AND OTHER HIGH ROLLERS OF THE 1980S ROLLED TOGETHER BLUE'S TAKEOVER TARGET IS DUNMERE HOLDINGS A BLUEBLOODED BRITISH CONGLOMERATE RESEMBLING PEARSON PLC OWNER OF MR HAM'S REALLIFE EMPLOYER OFFSHORE FINANCIAL REVIEW IN MR HAM'S TELLING NEWS IN A DUNMERE PUBLICATION INSOLVENCY WEEK THAT BLUE IS BROKE HELPS TRIGGER A GLOBAL SELLOFF IN STOCKTRADING ROOMS AROUND THE WORLD DOWN DOWN TO FIND A BUYER ALL WERE BLOWN MR HAM ADMITS HIS POEM ISN'T EVERYBODY'S IDEA OF A GOOD READ BUT HE ISN'T DISCOURAGED HE IS CURRENTLY WRITING A NOVEL BASED LOOSELY ON THE 1991 COLLAPSE OF BANK OF CREDIT & COMMERCE INTERNATIONAL HE HAS ALREADY TURNED OUT 10000 WORDS 9306110081 930611 ECONOMY BELLWETHER 3M EXPECTS NET TO FALL SHORT OF FORECASTS DUE TO A SLOWDOWN IN US BY CARL QUINTANILLA STAFF REPORTER OF THE WALL STREET JOURNAL MINNESOTA MINING & MANUFACTURING CO RAISING A WARNING FLAG ABOUT THE ECONOMY SAID SECONDQUARTER PROFIT WILL FALL SHORT OF EXPECTATIONS BECAUSE OF SLOWING US GROWTH THE NEWS SENT 3M'S STOCK PLUNGING 86 AND TRIGGERED TREMORS THROUGHOUT THE STOCK MARKET THE RESULTS OF 3M WITH ITS A VAST ARRAY OF PRODUCTS FROM ADHESIVES TO COMPUTER TAPES TO MEDICAL PRODUCTS ARE OFTEN VIEWED AS A BAROMETER OF THE ECONOMY BECAUSE 3M HAS BECOME AN ECONOMIC INDICATOR ITS DIFFICULTIES SUGGEST A REAL POSSIBILITY THE ECONOMY IS SLOWING SAID EUGENE GLAZER A DEAN WITTER REYNOLDS INC ANALYST IN ITS ANNOUNCEMENT THE ST PAUL MINN COMPANY SAID THAT EARNINGS IN THE QUARTER WOULD EXCEED THE YEAREARLIER 317 MILLION OR 145 A SHARE BUT THAT THE INCREASE WILL BE LESS THAN WE PREVIOUSLY EXPECTED IT SAID THE WEAKENING ECONOMY HAS HINDERED GROWTH IN MOST OF ITS BUSINESS LINES AFTER THE ANNOUNCEMENT 3M SHARES SLID 10 TO 10575 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING VOLUME WAS HEAVY WITH MORE THAN 23 MILLION SHARES CHANGING HANDS THE DECLINE WHOLLY ACCOUNTED FOR THE DROP OF 2021 IN THE DOW JONES INDUSTRIAL AVERAGE YESTERDAY OF WHICH 3M IS A COMPONENT DESPITE THE 3M STOCK SLIDE ANALYSTS TRIMMED SECONDQUARTER PROFIT PROJECTIONS BY ONLY 8 TO 10 CENTS A SHARE TO ABOUT 150 A SHARE AND CUT PERSHARE FORECASTS FOR THE FULL YEAR TO ABOUT 600 FROM THE EARLIER FORECASTS OF 615 THAT SUGGESTS THEY DON'T SEE THE SHORTFALL AS A SEVERE SETBACK FOR 3M BUT MR GLAZER ADDED WE MAY START TO SEE SIMILAR COMMENTS FROM OTHER COMPANIES BECAUSE OF ITS BIG OVERSEAS PRESENCE 3M'S EARNINGS PERFORMANCE HAS FOR SOME TIME BEEN HAMPERED BY THE WEAK ECONOMIES IN EUROPE AND JAPAN BUT THE REBOUNDING US MARKETPLACE HAS HELPED TO FIRM RESULTS GROWTH IN DOMESTIC VOLUME CLIMBED 7 IN THE FIRST QUARTER FOR INSTANCE HOWEVER THAT RATE SLOWED TO ABOUT 3 IN APRIL AND MAY THE COMPANY SAID MEANWHILE INTERNATIONAL SALES ARE INCREASING ABOUT 5 A BIT SLOWER THAN THE 6 GROWTH PACE OF THE FIRST QUARTER SOME ANALYSTS QUESTIONED 3M'S VIEW OF A WEAKENING ECONOMY IT ISN'T OBVIOUS TO ME WHAT SLOWDOWN 3M IS OBSERVING SAID MICHAEL W ELLMANN AN ANALYST AT WERTHEIM SCHRODER AUTO SALES DON'T LOOK SO BAD RETAIL SALES DON'T LOOK SO BAD PERHAPS HE ADDED IT'S LIKE RETAILERS BLAMING WEAK SALES ON THE WEATHER IT ALWAYS WORKS BUT THE COMPANY SAID THAT THE WEAKNESS ISN'T CONFINED TO ONE MAJOR SECTOR OF ITS BUSINESS BUT IS MORE OR LESS ACROSS THE BOARD 3M ALSO SAID THAT EFFECTS OF FOREIGN CURRENCY TRANSLATION WILL REDUCE NET INCOME BY ABOUT FIVE CENTS A SHARE IN THE SECOND QUARTER WHICH IS SIMILAR TO THE EFFECT ON FIRSTQUARTER RESULTS 9306110080 930611 TECHNOLOGY BRIEF NYNEX CORP UNIT GETS FEDERAL APPROVAL FOR TEST OF VIDEO SIGNALS FEDERAL REGULATORS APPROVED NEW YORK TELEPHONE'S PLANS TO BEGIN TESTING DELIVERY OF VIDEO SIGNALS OVER ITS MANHATTAN TELEPHONE NETWORK THE COMPANY PLANS TO TEST TRANSMISSION AND SWITCHING TECHNOLOGIES AND WAYS TO STORE VIDEO PROGRAMS THE UNIT OF NYNEX CORP WHITE PLAINS NY PLANS TO PROVIDE ENOUGH CAPACITY TO CARRY 160 CHANNELS OF VIDEO PROGRAMMING 70 OF WHICH WILL BE ASSIGNED TO LIBERTY CABLE TELEVISION OF MANHATTAN WHICH TRANSMITS TV PROGRAMMING OVER SATELLITE AND MICROWAVE TO SOME 10000 MANHATTAN CUSTOMERS THE OTHER CHANNELS WILL BE FILLED BY VIDEO PROGRAMMERS ON A FIRSTCOME FIRSTSERVED BASIS THE TEST ALSO WILL INCLUDE A VIDEO SERVER A VIDEO JUKEBOX THAT LETS SUBSCRIBERS VIEW MOVIES AND OTHER FARE THE TEST IS THE SECOND SOCALLED VIDEO DIALTONE TRIAL APPROVED BY THE FEDERAL COMMUNICATIONS COMMISSION WHICH RECENTLY ALLOWED BELL ATLANTIC CORP TO TEST VIDEO DELIVERY OVER ORDINARY TELEPHONE LINES IN NORTHERN VIRGINIA 9306110079 930611 ECONOMY OPEC MEMBERS AGREE TO FREEZE OUTPUT QUOTAS BUT KUWAIT PLANS TO DEFY PRODUCTION ALLOTMENT OIL PRICES FALL SHARPLY BY BHUSHAN BAHREE AND JAMES TANNER STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA OPEC OIL MINISTERS AGREED TO FREEZE THEIR PRODUCTION QUOTAS FOR THE THIRD QUARTER WHILE PROMISING KUWAIT A MODERATE INCREASE IN ITS ALLOTMENT BUT KUWAIT REJECTED THE QUOTA AND SAID IT WOULD BEGIN INCREASING ITS OUTPUT NEXT MONTH TO THE LEVEL IT HAD SOUGHT THE NEWS SENT OIL PRICES SHARPLY LOWER YESTERDAY OTHER MEMBERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES INCLUDING SOME THAT HAD BEEN OVERPRODUCING REAFFIRMED THEIR COMMITMENTS TO THE RESTRAINTS THIS MEANS TOTAL OPEC OUTPUT COULD DECLINE FROM THE CURRENT LEVEL OF 242 MILLION BARRELS A DAYOFFSETTING IN PART AT LEAST THE PLANNED RISE IN KUWAITI PRODUCTION OF AS MUCH AS 560000 BARRELS A DAY AS A RESULT THE OPEC OIL MINISTERS HOPE WORLD OIL PRICES WILL FIRM RATHER THAN WEAKEN FURTHER BUT THAT DEPENDS ON HOW WIDE KUWAIT OPENS ITS TAPS ON THE NEW YORK MERCANTILE EXCHANGE YESTERDAY LIGHT CRUDE FOR JULY DELIVERY FELL 36 CENTS A BARREL TO 1928 TO FULFILL A PROMISE MADE TO KUWAIT IN FEBRUARY AND TO HELP MAKE ROOM FOR ITS REBOUND FROM THE GULF WAR OPEC MEMBERS AT THE CONFERENCE OFFERED THE EMIRATE A 10 PRODUCTION INCREASE FOR THE THIRD QUARTER BUT KUWAIT INSISTED ON AN IMMEDIATE 25 RISE FROM ITS CURRENT 16 MILLION BARRELS A DAY PLUS AN ADDITIONAL 160000 BARREL A DAY INCREASE FROM SEPT 1 OR A TOTAL NEW QUOTA OF 216 MILLION BARRELS A DAY NONETHELESS ALI AHMAD ALBAGHLI THE KUWAITI OIL MINISTER SAID KUWAIT WOULD ACT IN A RESPONSIBLE MANNER AND ONLY GRADUALLY INCREASE PRODUCTION TO ABOUT 216 MILLION BARRELS A DAY BY THE END OF THE THIRD QUARTER I DON'T BELIEVE ANY MORE IN THEIR PROMISES SAID MR ALBAGHLI HE NOTED THAT KUWAIT HAD REDUCED ITS OUTPUT SHARPLY FOR THE SECOND QUARTER WHILE OTHERS EXCEEDED THEIR QUOTAS AND CAUSED PRICES TO WEAKEN HOLDING UP PRICES HE SAID IS A COMMON RESPONSIBILITY OF ALL 12 MEMBERS OF OPEC KUWAIT RELUCTANTLY AGREED IN FEBRUARY TO REDUCE ITS PRODUCTION SHARPLY ON CONDITION THAT EFFECTIVE JULY 1 IT WOULD BE ALLOWED TO PRODUCE AS MUCH AS THOSE COUNTRIES WITH COMPARABLE CAPACITY IN THAT REGARD KUWAIT PREVIOUSLY HAS CITED THE UNITED ARAB EMIRATES WHOSE QUOTA IS 216 MILLION BARRELS A DAY WITH KUWAIT AT 16 MILLION BARRELS A DAY FOR THE SECOND QUARTER THE TOTAL PRODUCTION CEILING FOR OPEC IS SOME 236 MILLION BARRELS A DAY HOWEVER ACTUAL PRODUCTION CURRENTLY IS ABOUT 242 MILLION BARRELS A DAY BY COINCIDENCE THIS IS THE ANTICIPATED DEMAND FOR OPEC OIL IN THE THIRD QUARTER PLUS WHATEVER ADDITIONS WILL BE MADE TO INVENTORIES BY THE OIL COMPANIES BUT IN THE FOURTH QUARTER DEMAND IS EXPECTED TO RISE FURTHER TO 26 MILLION BARRELS A DAY FOR OPEC OIL BEFORE INVENTORY ADJUSTMENTS AS A RESULT THE CONSENSUS AMONG THE OIL MINISTERS EXCEPT FOR MR ALBAGHLI WAS THAT ANY SIGNIFICANT QUOTA INCREASES SHOULD BE POSTPONED UNTIL THE FOURTH QUARTER WHEN OPEC WILL BE PRESSING CAPACITY LIMITS TO MEET ANTICIPATED DEMAND WITH IRAQ STILL BARRED FROM THE OIL MARKETS BY THE UNITED NATIONS OPEC'S CAPACITY IS VARIOUSLY ESTIMATED AT 26 MILLION TO 265 MILLION BARRELS A DAY SOME COUNTRIES MAY BE UNABLE TO FILL THEIR QUOTAS IN THE FOURTH QUARTER OPEC SECRETARYGENERAL SUBROTO SAID THE OIL MINISTERS WILL MEET AGAIN SEPT 25 TO CONSIDER PRODUCTION LEVELS FOR THE FOURTH QUARTER WE WILL HAVE ENOUGH ROOM TO SATISFY EVERYBODY THEN SAID JEAN PING GABON'S OIL MINISTER AND OPEC'S PRESIDENT BEFORE THEN HOWEVER PRICES WILL DEPEND ON OPEC'S PRODUCTION DISCIPLINE IF WE ADHERE TO THE QUOTAS PRICES WILL STRENGTHEN SAID ALIRIO PARRA VENEZUELA'S OIL MINISTER ONE COUNTRY WHOSE OUTPUT WILL BE WATCHED IS IRAN WHICH HAS BEEN CHARGED WITH PRODUCING MORE THAN ITS QUOTA IN RECENT MONTHS GHOLAMREZA AGHAZADEH IRAN'S OIL MINISTER PLEDGED THAT HE WILL ABIDE BY HIS QUOTA IN THE THIRD QUARTER BUT HE SAID THE PRICE OUTLOOK DEPENDS ON KUWAIT AND ITS RISING OUTPUT KUWAIT'S MR ALBAGHLI SAID HE WON'T DUMP OIL AT DISCOUNTED PRICES PRICES HE ADDED WOULD STABILIZE IF QUOTAS WERE OBSERVED THIS HE EXPLAINED WAS BECAUSE OUTPUT WOULD REMAIN WELL UNDER ANTICIPATED DEMAND OF 242 MILLION BARRELS A DAY EVEN WITH HIGHER OUTPUT FROM KUWAIT THE KUWAITI MINISTER SAID HE HAD PROPOSED A CEILING OF 23982 MILLION BARRELS A DAY FOR JULY AND AUGUST RISING TO 24143 MILLION BARRELS A DAY FOR SEPTEMBER THIS WOULD HAVE FORMALIZED THE HIGHER QUOTAS KUWAIT WAS SEEKING BUT STILL WOULD HAVE KEPT OUTPUT BELOW ANTICIPATED DEMAND 9306110078 930611 BUSINESS BRIEF FIRST SAVINGS BANK FSB SOUTH CAROLINA FIRM WEIGHS PURCHASE BY OTHER CONCERNS FIRST SAVINGS BANK FSB GREENVILLE SC SAID IT HAS ENTERED PRELIMINARY DISCUSSIONS WITH OTHER FINANCIAL CONCERNS REGARDING THE POSSIBLE ACQUISITION OF THE COMPANY FIRST SAVINGS WITH ASSETS OF ABOUT 2 BILLION IS THE LARGEST REMAINING INDEPENDENT BANK IN A STATE THAT HAS SEEN MANY OF ITS FINANCIAL CONCERNS GOBBLED UP IN RECENT YEARS BY OUTOFSTATE BANKS NEWS OF A POSSIBLE ACQUISITION HELPED PUSH THE COMPANY'S SHARE PRICE TO 13 UP 2 IN NATIONAL OVERTHECOUNTER TRADING FIRST SAVINGS WITH 57 OFFICES IN THE STATE AND FIVE OUTOFSTATE MORTGAGELENDING OPERATIONS SAID THERE WERE NO ASSURANCES THAT THE CURRENT DISCUSSIONS WOULD LEAD TO AN AGREEMENT THE COMPANY ADDED THAT IF AN AGREEMENT WERE REACHED THERE WERE NO ASSURANCES THAT A TRANSACTION WOULD BE COMPLETED 9306110077 930611 OTC FOCUS TAX FEARS TOPPLE TRANSPORTATION ISSUES DRIVING OVERALL MARKET TO A MILD LOSS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEAR THAT THE CLINTON ADMINISTRATION'S BUDGET PROPOSAL COULD INCLUDE SHARPLY HIGHER FUEL TAXES CRIPPLED TRANSPORTATION ISSUES DRIVING THE OVERALL NASDAQ MARKET INTO NEGATIVE TERRITORY THE NASDAQ COMPOSITE INDEX DIPPED 119 POINTS OR 017 TO FINISH AT 68805 AFTER POSTING A MILD GAIN YESTERDAY RETREATING ISSUES BEAT OUT ADVANCERS 1427 TO 1222 PRESIDENT CLINTON HAS REPORTEDLY DROPPED HIS PLANNED BRITISH THERMAL UNIT LEVY THAT WOULD HAVE HIT THE OIL INDUSTRY HARD AND COULD HAVE LED TO THE DEFEAT OF HIS DEFICITREDUCTION PROPOSAL IN THE SENATE DEMOCRATIC SENATE LEADERS HAVE TENTATIVELY AGREED TO A TAX INCREASE ON GASOLINE AND OTHER TRANSPORTATION FUELS OF ABOUT NINE CENTS A GALLON UP FROM 75 CENTS A GALLON UNDER THE ORIGINAL PLAN IN RESPONSE THE NASDAQ TRANSPORTATION INDEX TOPPLED 1176 POINTS OR 173 TO END AT 66658 AMONG ITS COMPONENTS ROADWAY SERVICES FELL 1 3/4 TO 52 1/4 YELLOW CORP DROPPED 1 1/4 TO 18 3/8 AND ATLANTIC SOUTHEAST AIRLINES TUMBLED 2 7/8 TO 34 MEANWHILE NEW YORK STOCK EXCHANGE SHARES EASED AS MINNESOTA MINING & MANUFACTURING PLUNGED 10 TO 105 3/4 ON A DISAPPOINTING EARNINGS OUTLOOK THE DOW JONES INDUSTRIAL AVERAGE FELL BELOW THE 3500 MARK TO 349172 DOWN 2021 POINTS OR 058 FROM WEDNESDAY'S CLOSE THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SANK 024 POINTS OR 010 TO 24553 TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME FELL TO 198419300 SHARES FROM 217449400 SHARES AS TRADING SLOWED AHEAD OF TWO KEY INFLATION REPORTS TO BE RELEASED TOMORROW AND TUESDAY ARNOLD OWEN MANAGING DIRECTOR OF TRADING AT SOUNDVIEW FINANCIAL CORP SAID TOMORROW'S RELEASE OF MAY'S PRODUCER PRICE INDEX SHOULD PROVIDE A CLUE AS TO HOW THE FEDERAL RESERVE WILL REACT INVESTORS HAVE BEEN JITTERY OVER CONCERNS THAT THE FED MAY MOVE TO TIGHTEN CREDIT BASED ON WHAT THE DATA SHOW CONTINUED CONFUSION OVER THE ECONOMIC AND POLITICAL CLIMATES CONTINUES TO BE A THORN IN THE SIDES OF MARKET PLAYERS THE HARDEST THING FOR THE STOCK MARKET TO DEAL WITH IS UNCERTAINTY AND THAT'S WHAT IT'S LOOKING AT RIGHT NOW MR OWEN SAID MARKET PEOPLE ARE TRYING TO PUT A LITTLE BIT OF A COLLAR ON THEIR PORTFOLIOS AND PROTECT THEMSELVES SAID JERRY NEWMAN AN INSTITUTIONAL TRADER AT COWEN & CO HE ADDED THAT THERE'S STILL ENOUGH CASH OUT THERE BUT THE CONSENSUS IS NOW MOVING TOWARD THE ASSESSMENT THAT WE'RE LOOKING AT SOME KIND OF CORRECTION THE US DOLLAR EXTENDED ITS LOSSES YESTERDAY AGAINST THE YEN WHICH TRADERS SAY ALSO WEIGHED UPON OVERTHECOUNTER STOCKS THE GREENBACK SLIPPED AGAINST THE GERMAN MARK AS WELL SEMICONDUCTOR STOCKS WERE HURT BY A DROP IN THE INDUSTRY'S BOOKTOBILL RATIO THE FIGURE SLIPPED TO 112 IN MAY BELOW THE 114 FORECAST OF ANALYSTS SURVEYED BY DOW JONES NEWS SERVICE INTEL FOR INSTANCE FELL 1 1/4 TO 54 5/8 ON HEAVY VOLUME ELSEWHERE IN THE TECHNOLOGY GROUP LOTUS DEVELOPMENT SAGGED 1 1/4 TO 33 1/2 SUN MICROSYSTEMS WAS OFF 3/4 AT 29 3/4 AND ADOBE SYSTEMS LOST 1 1/4 TO 67 1/2 SOFTWARE TOOLWORKS FELL 1 1/8 TO 9 AFTER REPORTING A FISCAL FOURTHQUARTER LOSS OF TWO CENTS A SHARE ANALYSTS HAD EXPECTED THE COMPANY IN NOVATO CALIF TO EARN SEVEN CENTS IN THE QUARTER APPLE COMPUTER WAS ONE OF THE DAY'S MOST ACTIVE ISSUES AND ROSE 1/4 TO 44 1/2 WEDNESDAY THE CUPERTINO CALIFBASED COMPUTER GIANT SAID IT EXPECTS WEAKER SECONDHALF EARNINGS THAN IT HAD ANTICIPATED 9306110076 930611 MONEYMARKET FUNDS INCREASED 34 BILLION IN THE LATEST WEEK WASHINGTON MONEYMARKET MUTUAL FUND ASSETS ROSE 34 BILLION OR 06 TO 58373 BILLION FROM 58033 BILLION FOR THE WEEK ENDED JUNE 9 THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 633 RETAIL MONEYMARKET MUTUAL FUNDS ROSE 184 BILLION OR 05 TO 39075 BILLION THE TRADE GROUP SAID ASSETS OF 397 TAXABLE MONEYMARKET FUNDS IN THE RETAIL CATEGORY ROSE 8956 MILLION OR 03 TO 30839 BILLION ASSETS OF 236 RETAIL TAXEXEMPT FUNDS ROSE BY 9419 MILLION OR 116 TO 8236 BILLION ASSETS OF THE 266 INSTITUTIONAL MONEYMARKET FUNDS ROSE BY 156 BILLION OR 08 TO 19298 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 214 TAXABLE MONEY MARKET FUNDS ROSE BY 105 BILLION OR 06 TO 17128 BILLION ASSETS OF 52 TAXEXEMPT FUNDS ROSE BY 5121 MILLION OR 24 TO 2170 BILLION 9306110075 930611 POTENTIAL INVESTMENT IN PAC RIM WOODLAND HILLS CALIF PAC RIM HOLDING CORP SAID IT HAS ENTERED DISCUSSIONS WITH A PRIVATE INVESTOR GROUP REGARDING A SUBSTANTIAL INVESTMENT IN THE UNDERWRITER OF WORKERS' COMPENSATION INSURANCE STANLEY BRAUN PRESIDENT AND CHIEF EXECUTIVE SAID THE POTENTIAL INVESTMENT WOULDN'T INVOLVE A SALE OF THE COMPANY BUT COULD RESULT IN ADDITIONAL BOARD MEMBERS BEING NAMED TO REPRESENT THE INVESTOR DETAILS WEREN'T DISCLOSED 9306110074 930611 TRADE SANCTIONS AGAINST TAIWAN CHINA WEIGHED US DEMANDS CRACKDOWN ON TRAFFICKING IN TIGER AND RHINOCEROS PARTS BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN THE US IS WARNING THAT IT COULD IMPOSE TRADE SANCTIONS ON TAIWAN AND CHINA UNLESS THEY CRACK DOWN ON TRAFFICKING IN RHINOCEROS HORNS AND TIGER PRODUCTS WHICH IS CONTRIBUTING TO THE RAPID DECLINE OF BOTH SPECIES BRUCE BABBITT US SECRETARY OF THE INTERIOR ON APRIL 30 APPROVED A PRELIMINARY FINDING BY HIS DEPARTMENT THAT BOTH COUNTRIES ARE ENGAGING IN TRADE THAT DIMINISHES THE EFFECTIVENESS OF A UNITED NATIONS TREATY AIMED AT PROTECTING ENDANGERED SPECIES ON JUNE 1 MR BABBIT SENT LETTERS TO TAIWAN AND CHINA SAYING THE AGENCY PLANS TO CITE THEM UNDER THE PELLY AMENDMENT THAT WOULD REQUIRE PRESIDENT CLINTON TO DECIDE WHETHER TO IMPOSE TRADE SANCTIONS THE LETTERS GIVE THE COUNTRIES 30 DAYS TO PROVIDE INFORMATION THAT WOULD MAKE THE DEPARTMENT CHANGE ITS MIND ANY US ACTION WOULD BE A SIGNIFICANT STEP IN THE INTERNATIONAL EFFORT TO COMBAT THE UNDERGROUND TRADE THAT IS THREATENING THE RHINOCEROS AND TIGER WITH EXTINCTION PRODUCTS DERIVED FROM THE ANIMALS ARE PRIZED IN TRADITIONAL CHINESE MEDICINE AND A STEEP DECLINE IN THEIR POPULATIONS IN THE PAST 20 YEARS HAS BEEN LINKED TO A SHARP RISE IN DEMAND FROM TAIWAN AND CHINA ACCORDING TO WILDLIFECONSERVATION ORGANIZATIONS IN AN APPARENT RESPONSE TO THE THREAT OF SANCTIONS CHINA LAST WEEK OUTLAWED TRADE IN RHINOCEROS HORNS AND TIGER BONES WILDLIFE GROUPS IN TAIPEI SAY THE BAN APPARENTLY WON'T TAKE EFFECT FOR SIX MONTHS TRADE IN ENDANGERED SPECIES IS WIDESPREAD IN CHINA WHICH HAS BEEN SINGLED OUT BY ENVIRONMENTAL ORGANIZATIONS FOR THE DECIMATION OF TIGER POPULATIONS WITHIN ITS BORDERS AND THE IMPORT OF TIGER BONES IN A STATEMENT WEDNESDAY MR BABBITT ACKNOWLEDGED CHINA'S BAN BUT SAID IT WASN'T SUFFICIENT TO HEAD OFF US ACTION WE'RE VERY ENCOURAGED BY THE APPARENT SHIFT BY THE CHINESE GOVERNMENT HE SAID BUT IT MUST COMMIT TO THE DESTRUCTION OF EXISTING STOCKPILES OF RHINO HORNS AND TO THE FULL IMPLEMENTATION OF RESOLUTIONS ADOPTED BY SIGNATORIES TO THE UN'S CONVENTION ON INTERNATIONAL TRADE IN ENDANGERED SPECIES OF WILD FAUNA AND FLORA TAIWAN OUTLAWS TRADE IN RHINOCEROS HORNS AND TIGER PRODUCTS LIMITS ON THEIR IMPORT AND SALE HAVE BEEN IMPOSED IN STAGES SINCE 1985 WITH PROHIBITION IMPOSED IN NOVEMBER BUT INTERNATIONAL WILDLIFE ORGANIZATIONS COMPLAIN THAT THE BAN HAS HAD LITTLE EFFECT THE TAIWAN GOVERNMENT DESERVES SOME RECOGNITION FOR THE STEPS IT HAS TAKEN SAYS JONATHAN LOH DIRECTOR OF THE TAIPEI OFFICE OF TRADE RECORDS ANALYSIS OF FLORA AND FAUNA IN COMMERCE OR TRAFFIC AN INTERNATIONAL CONSERVATION GROUP BASED IN BRITAIN HOWEVER THAT IS NOT TO DEFEND THE TAIWAN GOVERNMENT THE IMPLEMENTATION OF THE LAWS THAT HAVE BEEN PASSED HAS BEEN VERY WEAK THERE IS VERY LITTLE IN THE WAY OF ENFORCEMENT TAIWANESE OFFICIALS OBJECT TO THE US FINDINGS ASSERTING THAT THEIR GOVERNMENT IS FIRMLY COMMITTED TO ERADICATING ILLEGAL TRADE IN ENDANGERED SPECIES THE PROGRESS IN WILDLIFE CONSERVATION IN TAIWAN ACTUALLY IS TREMENDOUS SAYS LING SHIANGNUNG VICE CHAIRMAN OF TAIWAN'S COUNCIL OF AGRICULTURE THE AGENCY RESPONSIBLE FOR WILDLIFE CONSERVATION MR LING DENIES THAT TAIWAN HAS BEEN LAX IN ITS ENFORCEMENT EFFORTS HE ALSO CRITICIZES DATA RELEASED BY CONSERVATIONISTS THAT INDICATE LARGE STOCKPILES OF RHINOCEROS HORNS AND TIGER BONES AS WELL AS EXTENSIVE UNDERGROUND TRADING NEXT WEEK MR LING WILL LEAD A TAIWANESE DELEGATION TO WASHINGTON TO DISCUSS THE WILDLIFE ISSUE LAST WEEK TAIWAN ANNOUNCED NEW ENFORCEMENT MEASURES INCLUDING A NT20000 US765 REWARD FOR THE SEIZURE OF RHINOCEROS HORNS AND SENDING OFFICERS TO SOUTH AFRICA FOR TRAINING TO COMBAT SMUGGLERS TAIWAN ALSO IS MOVING TO INCREASE FINES FOR TRAFFICKING AND SET UP A POLICE TASK FORCE BUT CRITICS SAY THE STEPS WILL LIKELY BE INADEQUATE AND SAY THE GOVERNMENT HASN'T BEEN WILLING TO RECOGNIZE HOW WIDESPREAD TRADE IN RHINOCEROS HORNS HAS BECOME IN A STUDY LAST YEAR TRAFFIC ESTIMATED THAT BETWEEN FIVE AND 10 TONS OF HORNS ARE IN TAIWAN WHICH THE GOVERNMENT DISPUTES A RECENT TRAFFIC SURVEY SHOWED THAT 36 OF CHINESE APOTHECARIES POLLED HELD STOCKS OF THE HORNS OR POWDERED HORN AND THAT OTHERS SAID THEY COULD GET IT GOVERNMENT OFFICIALS CLAIM THAT MOST RHINOCEROS HORN SOLD IS FAKE CONSERVATIONISTS ASSERT THAT THE GOVERNMENT IS UNWILLING TO RECOGNIZE EVIDENCE THAT POINTS TO THE EXTENSIVE INVOLVEMENT OF TAIWANESE GROUPS IN SMUGGLING RINGS IN A FILM DOCUMENTARY BY THE AMERICAN ENVIRONMENTAL GROUP EARTHTRUST A HIGHLEVEL SOUTH AFRICAN POLICE OFFICIAL SAYS THAT THE CASES OF RHINOCEROSHORN SMUGGLING HE HAS INVESTIGATED INVOLVED TAIWANESE THE FOCUS ON ENFORCEMENT EFFORTS MIRRORS THE CRITICISM THAT TAIWAN HAS FACED IN RECENT YEARS ON OTHER ISSUES INVOLVING SMUGGLING EARLIER THIS YEAR TAIWAN HEIGHTENED MEASURES AGAINST PIRACY OF INTELLECTUAL PROPERTY RIGHTS OR IPR AFTER THE US THREATENED TO IMPOSE TRADE SANCTIONS THE US ALSO HAS COMPLAINED ABOUT LAX EFFORTS TO HALT THE MASSIVE SMUGGLING OF CIGARETTES INTO TAIWAN AS WELL AS HEROINTRAFFICKING RINGS THAT ALLEGEDLY USE THE ISLAND'S PORTS TO CHANNEL SHIPMENTS THEIR ENFORCEMENT IS NOT WHAT IT SHOULD BE THE AMERICAN TRADE SPECIALIST SAYS IT CUTS ACROSS IPR IT CUTS ACROSS RHINO HORN IT'S NARCOTICS IT'S CIGARETTES YOU'VE GOT SMUGGLING ALL OVER THE PLACE AND THERE'S NOT ENOUGH ENFORCEMENT 9306110073 930611 CORRECTIONS & AMPLIFICATIONS HOLLYWOOD PRODUCER DAVID WOLPER PAID 750000 FOR HIS BELAIR ESTATE 15 YEARS AGO AND SINCE THEN HAS INVESTED 54 MILLION IN EXPANSION AND IMPROVEMENTS BECAUSE OF INCORRECT INFORMATION SUPPLIED BY A BROKER A PAGEONE ARTICLE TUESDAY MISSTATED THE PRICE AS 15 MILLION SCANDINAVIAN AIRLINES SYSTEM HAS A MARKETING ALLIANCE WITH CONTINENTAL AIRLINES BUT ISN'T ANY LONGER AN EQUITY PARTNER IN THE AIRLINE A CORPORATE FOCUS ARTICLE YESTERDAY INCORRECTLY STATED THAT SAS AND CONTINENTAL ARE EQUITY PARTNERS CVD FINANCIAL CORP A SUBSIDIARY OF CONVERSION INDUSTRIES INC OFFERED 575 MILLION OF COMMON SHARES IN AN INITIAL OFFERING AN ITEM YESTERDAY INCORRECTLY SAID THE COMPANY OFFERED 575 MILLION UNITS 9306110072 930611 TECHNOLOGY & HEALTH HOECHST CELANESE SUSPENDS A PILOT RECYCLING PROJECT BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL HOECHST CELANESE CORP SUSPENDED A PILOT RECYCLING PROJECT THAT WAS EXPERIMENTING WITH A BETTER WAY OF SEPARATING TYPES OF PLASTIC USED IN SODA BOTTLES THE SOMERVILLE NJ UNIT OF GERMANY'S HOECHST AG SAID IT HAD TO REEVALUATE THE TECHNOLOGY WHICH IT BEGAN USING LATE LAST YEAR AT A SOUTH CAROLINA SITE THE RECYCLING LINE WAS PART OF A 6 MILLION RECYCLING PROJECT ANNOUNCED IN DECEMBER 1991 CURRENTLY PLASTIC BOTTLES TO BE RECYCLED ARE SEPARATED INDIVIDUALLY BEFORE THEY ARE GRANULATED IN ORDER TO AVOID CONTAMINATION OF THE RECYCLED PRODUCTS THE HOECHST CELANESE PROCESS SOUGHT TO SEPARATE THE PLASTICS AFTER GRANULATION INCREASING BOTH SPEED AND VOLUME BOTTLES MADE FROM POLYETHYLENE TEREPHTHALATE KNOWN AT PET AND POLYVINYL CHLORIDE OR PVC MAKE UP 31 AND 5 RESPECTIVELY OF PLASTICS USED IN PACKAGING MAINLY SODA BOTTLES HIGHDENSITY POLYETHYLENE OR HDPE OFTEN USED FOR PACKAGING DETERGENTS ACCOUNTS FOR ABOUT 58 OF PLASTICS USED IN PACKAGING CLEAR PVC AND PET BOTTLES LOOK QUITE SIMILAR AND MANUFACTURERS RELY ON CODING ON THE BOTTLES TO TELL THEM APART ACCORDING TO RECYCLING EXPERTS HOECHST CELANESE HAD BEEN ATTEMPTING INSTEAD TO SEPARATE PET FROM PVC AFTER THE BOTTLES ARE GROUND UP BY PUTTING THEM IN A TYPE OF LIQUID SOAP SOLUTION WHICH IN THEORY WOULD CAUSE PVC FLAKES TO FLOAT TO THE TOP OF THE MIXTURE WHILE PET WOULD SINK THE METHOD DIDN'T HANDLE HDPE HOECHST CELANESE'S WETSEPARATION METHOD HAS BEEN WIDELY WATCHED BECAUSE THE COMPANY HAS HAD SEVERAL PLASTICS RECYCLING BREAKTHROUGHS INCLUDING THE FIRST FOOD AND DRUG ADMINISTRATION APPROVAL FOR RECYCLED PET FOOD CONTAINERS IN 1991 WE STARTED RUNNING INTO SOME STUMBLING BLOCKS SO WE SUSPENDED THE OPERATION TO TAKE A LOOK AT WHAT WE'VE GOT SAID LEWIS MORRISON A HOECHST OFFICIAL HE SAID THE COMPANY MIGHT DECIDE TO RESUME THE OPERATION IF WE FOUND A TECHNOLOGY COMBINATION THAT WOULD WORK IT WOULD BE INTERESTING TO A LOT OF PEOPLE THEY ARE LITERALLY PLOWING NEW GROUND IF IT CAN WORK IT COULD GREATLY SPEED THE RECYCLING PROCESS SAID LEA ANNE CONNELLY DIRECTOR OF TECHNICAL SERVICES FOR THE NATIONAL ASSOCIATION FOR PLASTIC CONTAINER RECOVERY MS CONNELLY SAID THAT OTHER COMPANIES ARE ALSO WRESTLING WITH WAYS TO SEPARATE THE PET AND PVC FLAKES SHE NOTED THAT ONE IS WORKING WITH A DRY METHOD THAT WOULD SEPARATE THE PVC AND PET FLAKES IN MUCH THE SAME WAY FARMERS SEPARATE ROCKS FROM HARVESTED FOOD 9306110071 930611 COMMODITIES GOLD FUTURES PRICES CONTINUE SLIDE MIRRORING COMMODITIES INDEX AND FEWER FEARS OF INFLATION BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES CONTINUED TO RETREAT AHEAD OF TODAY'S RELEASE OF THE GOVERNMENT'S PRODUCER PRICE INDEX ON NEW YORK'S COMMODITY EXCHANGE GOLD FOR AUGUST DELIVERY SHED 2 AN OUNCE TO 371 FOLLOWING WEDNESDAY'S 260 SLIDE TRADERS SAID THAT GOLD A TRADITIONAL HEDGE AGAINST INFLATION APPEARS TO BE RETREATING AMID A GENERAL EASING OF COMMODITY PRICES GOLD NEEDS OTHER COMMODITIES TO KICK IN IF IT IS GOING TO SUSTAIN ITS RECENT GAINS SAID HUNT TAYLOR MANAGING DIRECTOR OF REYNWOOD TRADING CO SHORT HILLS NJ THE COMMODITY RESEARCH BUREAU'S INDEX OF 21 FUTURES CONTRACTS A WIDELY FOLLOWED BAROMETER OF FUTURE INFLATION HAS CONTINUED TO SLIDE FROM LEVELS ABOVE 210 IN MIDMAY TO 20518 YESTERDAY EXCEPT FOR A FEW MINOR UPTURNS THE CRB INDEX HAS BEEN ON A STEADY DECLINE SINCE MAY 21 WHEN IT CLOSED AT 21156 MUCH OF THE INDEX'S SOFTER TONE CAN BE ATTRIBUTED TO SOFTENING ENERGY LUMBER AND AGRICULTURAL PRICES ANALYSTS SAID NOW ATTENTION WILL BE FOCUSED ON THE PRODUCER PRICE REPORT FOR MAY TO GAUGE WHETHER UNEXPECTEDLY STRONG INCREASES IN RECENT PRODUCER AND CONSUMER PRICE INDEXES WERE WEATHERRELATED ABERRATIONS THERE ARE A LOT OF PEOPLE ON THE SIDELINES WAITING FOR THE PRODUCER PRICE FIGURE SAID FRED DEMLER SENIOR METALS ECONOMIST WITH PAINEWEBBER IN NEW YORK THE EXPECTATIONS ARE FOR ONLY A 01 INCREASE IF MAY COMES IN AT 01 INVESTORS WILL CONCLUDE THAT INFLATION IS NOT A MAJOR PROBLEM AND MAY EASE UP FURTHER ON THEIR GOLD HOLDINGS WITH CAPACITY UTILIZATION LOW AND UNEMPLOYMENT STILL HIGH IT'S HARD TO BUILD A CASE FOR SHARPLY HIGHER INFLATION MR DEMLER SAID BUT IT'S EASY TO BUILD A CASE THAT WE'VE PROBABLY SEEN THE LOWS OF INFLATION IN 1992 OTHER ANALYSTS NOTE THAT MUCH OF GOLD'S RECENT RALLY FROM LEVELS AROUND 328 AT THE BEGINNING OF THE YEAR STEMMED FROM INVESTORS' PERCEPTIONS OF AN IMPROVING SUPPLYANDDEMAND BALANCE FOR THE METAL AS A RAW COMMODITY INDEPENDENT OF AN INFLATIONARY ECONOMIC CONTEXT BUT WHETHER THAT PERCEPTION CAN PREVAIL INDEPENDENT OF THE INFLATIONARY OUTLOOK IS QUESTIONABLE THEY SAY THERE'S NO DOUBT THAT SUPPLYANDDEMAND FACTORS HAVE TURNED MORE BULLISH PRINCIPALLY BECAUSE OF INCREASED DEMAND IN ASIA SAID JAMES STEEL A COMMODITY ANALYST WITH REFCO INC NEW YORK THERE'S ALSO BEEN A NOTICEABLE INFLATION COMPONENT IN THE BUYING OF GOLD IN MAY HE SAID ADDING THAT SCARE IS DIMINISHING NOW AND GOLD WILL HAVE TO STAND ON STRICT SUPPLYANDDEMAND FACTORS RATHER THAN ON INFLATIONARY HYPE THE POTENTIAL FOR EASING INFLATIONARY PRESSURES ALSO HAS ERODED SENTIMENT FOR OTHER PRECIOUS METALS SILVER FOR JULY DELIVERY CLOSED 35 CENTS LOWER AT 4310 AN OUNCE ON THE COMEX PLATINUM FOR JULY DELIVERY SLIPPED 2 TO 38670 ON THE NEW YORK MERCANTILE EXCHANGE PALLADIUM WAS THE ONE GAINER AMONG THE PRECIOUS METALS CLOSING 120 HIGHER AT 12570 FOR SEPTEMBER DELIVERY SEPARATELY THE WORLD GOLD COUNCIL A GENEVABASED TRADE GROUP REPRESENTING INTERNATIONAL MINING AND REFINING COMPANIES ANNOUNCED THAT WORLDWIDE SALES OF THE FIVE LEADING INTERNATIONAL GOLD BULLION COINS INCREASED BY 56 TO 270892 OUNCES IN APRIL AND MAY AGAINST YEAREARLIER LEVELS SALES IN NORTH AMERICA AND EUROPE WERE BRISK CLIMBING 68 IN THE PERIOD THE COUNCIL SAID WHILE SALES IN THE REST OF THE WORLD WERE STATIC UP JUST 1 IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF WHEAT FUTURES CONTRACTS ARE EXPECTED TO RISE SLIGHTLY TODAY IN THE WAKE OF THE AGRICULTURE DEPARTMENT'S FORECAST FOR A SMALLERTHANEXPECTED WINTER WHEAT HARVEST BASED ON JUNE 1 CONDITIONS THE DEPARTMENT RAISED ITS MONTHOLD FORECAST BY 16 MILLION BUSHELS TO 1824 BILLION BUSHELS SEVERAL GRAIN TRADERS HAD EXPECTED THE OFFICIAL FORECAST TO CLIMB TO ABOUT 185 BILLION BUSHELS BASED ON PLENTIFUL RAINFALL ACROSS MUCH OF THE WINTERWHEATGROWING REGION OF THE SOUTHERN PLAINS THE DEPARTMENT IS FORECASTING A RELATIVELY HIGH YIELD OF 391 BUSHELS AN ACRE THE HARVEST IS UNDER WAY IN TEXAS AND OKLAHOMA LAST YEAR US FARMERS HARVESTED 161 BILLION BUSHELS OF WINTER WHEAT AS EXPECTED THE GOVERNMENT SLIGHTLY LOWERED ITS FORECAST OF THE RECENT ARGENTINE SOYBEAN HARVEST TO 114 MILLION METRIC TONS FROM ITS MAY ESTIMATE OF 117 MILLION METRIC TONS THE MOVE REFLECTS RAIN AND STORM DAMAGE THE OFFICIAL ESTIMATE OF BRAZIL'S SOYBEAN HARVEST CLIMBED TO 223 MILLION METRIC TONS FROM THE MAY ESTIMATE OF 218 MILLION METRIC TONS THE AGRICULTURE DEPARTMENT DIDN'T CHANGE ITS FORECAST FOR THE FORMER SOVIET REPUBLICS TO HARVEST 174 MILLION METRIC TONS OF GRAIN THE FORMER SOVIET UNION IS EXPECTED TO IMPORT 288 MILLION METRIC TONS OF GRAIN FROM ALL SOURCES TO SUPPLEMENT THE HARVEST LAST YEAR THE FORMER SOVIET REPUBLICS IMPORTED 40 MILLION METRIC TONS OF GRAIN THE OUTLOOK FOR IMPORTS BY THE FORMER SOVIET REPUBLICS HELPS EXPLAIN THE DEPRESSED STATE OF US CORN PRICES THE FORMER SOVIET UNION WAS ONE OF THE BIGGEST BUYERS OF US FARM COMMODITIES UNTIL ECONOMIC CHAOS MADE IT DEPENDENT ON WESTERN AID AND SWEETHEART CREDIT PACKAGES ENERGY KUWAIT'S INTENDED DEFIANCE OF THE OPEC ACCORD COVERING THIRDQUARTER OUTPUT SENT CRUDE OIL PRICES SHARPLY LOWER IN LONDON ON THE INTERNATIONAL PETROLEUM EXCHANGE WIDELY TRADED BRENT CRUDE FUTURES PRICES FELL ON THE NEW YORK MERCANTILE EXCHANGE CRUDE PRICES FOR JULY DELIVERY LOST 36 CENTS A BARREL SETTLING AT 1928 THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES ENDED ITS GENEVA MEETING WITH ALL MEMBERS EXCEPT KUWAIT AGREEING TO CONTINUE THEIR SECONDQUARTER PRODUCTION CEILINGS THROUGH THE THIRD QUARTER KUWAIT REJECTED EVEN THE 10 INCREASE TO 176 MILLION BARRELS A DAY THAT THE OTHER MEMBERS OFFERED FUTURES TRADERS AND ANALYSTS SAID THAT THE SELLOFF WOULD HAVE BEEN EVEN WORSE IF THE MARKET HADN'T ALREADY BEEN SLIDING THIS WEEK BECAUSE OF OPEC DISARRAY IT WAS SHORTSIGHTED OF KUWAIT NOT TO GO ALONG WITH EVERYONE ELSE SAYS PETER BEUTEL ENERGY ANALYST WITH BRODY WHITE & CO WHY DOES KUWAIT INSIST ON SHOOTING ITSELF IN THE FOOT TIME AND TIME AGAIN THE SHARP DECLINE IN CRUDE SPILLED OVER INTO PRODUCTS WITH JULY HEATING OIL LOSING 069 CENTS A GALLON TO FINISH AT 5317 CENTS AND WITH GASOLINE FOR JULY DELIVERY DOWN BY 082 CENTS TO 5484 CENTS A GALLON NATURAL GAS HAD ITS OWN SLIPPAGE ON TECHNICAL FACTORS JULY NATURAL GAS LOST 3 CENTS PER MILLION BRITISH THERMAL UNITS TO FINISH AT 2141 9306110070 930611 MARKETING BRIEF NOTED NAME CHANGE REUTERS HOLDINGS PLC'S INTERNATIONAL VIDEO COMMUNICATIONS UNIT VISNEWS CORPORATE TELEVISION WAS RENAMED REUTERS TELEVISION CORPORATE TELEVISION PRODUCTIONS THE COMPANY SAID THE CHANGE REFLECTS REUTERS'S WHOLE OWNERSHIP OF THE UNIT WHICH UNTIL RECENTLY WAS PARTLY OWNED BY BRITISH BROADCASTING CORP AND NATIONAL BROADCASTING CORP 9306110069 930611 S&P LOWERS RATINGS ON CONFEDERATION LIFE INSURANCE CO AND UNITS NEW YORK STANDARD & POOR'S CORP SAID IT DOWNGRADED THE CLAIMSPAYING ABILITY OF CONFEDERATION LIFE INSURANCE CO AND ITS US SUBSIDIARY CONFEDERATION LIFE INSURANCE & ANNUITY CO TO DOUBLEAMINUS FROM DOUBLEA REFLECTING EXPECTATIONS OF WEAK EARNINGS OVER THE NEXT TWO TO THREE YEARS S&P ALSO SAID IT LOWERED ITS RATINGS ON ABOUT US500 MILLION OF LONGTERM DEBT ISSUED BY THE PARENT COMPANY AND A CANADIAN SUBSIDIARY TO SINGLEAPLUS FROM DOUBLEAMINUS THE NEW YORK RATING AGENCY SAID IT ALSO DOWNGRADED THE COMMERCIAL PAPER OF BRITISH SUBSIDIARY CONFEDERATION TREASURY SERVICES UK PLC TO A1 FROM A1PLUS WHILE CONFEDERATION ENJOYS POTENTIALLY STRONG DIVERSIFIED EARNINGS CAPACITY FROM ITS SOLID BUSINESS PROFILE CONTINUED ASSETQUALITY PROBLEMS WILL DAMPEN EARNINGS AND CAPITAL FORMATION FOR THE NEXT TWO TO THREE YEARS S&P SAID PAUL CANTOR CONFEDERATION LIFE'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY IS ADDING TO ITS CAPITAL BASE AND FOCUSING ON ITS CORE BUSINESSES OUR STRATEGY WILL TAKE TIME BUT WILL LEAD US BACK TO IMPROVED RATINGS HE SAID CONFEDERATION LIFE IS A MUTUAL LIFE CONCERN IN TORONTO 9306110068 930611 BUSINESS BRIEF HELENE CURTIS INDUSTRIES INC QUARTERLY EARNINGS OUTLOOK SENDS SHARES PLUNGING 164 HELENE CURTIS INDUSTRIES INC'S SHARES TUMBLED 164 ON NEWS THAT ITS FISCAL FIRSTQUARTER EARNINGS WILL FALL TO BETWEEN SIX CENTS AND 10 CENTS A SHARE FROM 26 CENTS A SHARE IN THE YEAREARLIER QUARTER THE COMPANY ADDED THAT GIVEN THIS PERFORMANCE AND THE OUTLOOK FOR THE ECONOMIC AND MARKET CONDITIONS IT DOESN'T EXPECT EARNINGS FOR FISCAL 1994 ENDING FEB 28 TO REACH LAST YEAR'S RECORD OF 233 A SHARE THE CHICAGO MAKER OF BEAUTY AND HEALTHCARE PRODUCT'S STOCK FELL 550 TO 28 ON THE NEW YORK STOCK EXCHANGE YESTERDAY THE COMPANY ALSO SAID SALES FOR THE PERIOD ARE EXPECTED TO BE FLAT WITH THE YEARAGO SALES OF 2451 MILLION THE COMPANY SAID IT ACHIEVED ITS INTRODUCTORY GOALS FOR ITS NEWEST HAIRCARE BRAND VIBRANCE BUT BRAND'S RESULTS OVER THE PAST SEVERAL MONTHS HAVE BEEN DISAPPOINTING IT SAID ITS ANTIPERSPIRANT/DEODORANT AND SKIN CARE BUSINESSES IN THE US ARE CONTINUING TO GROW AND ITS INTERNATIONAL OPERATIONS REMAIN SOLID 9306110067 930611 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 HIGH 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 315 30 TO 59 DAYS 318 60 TO 89 DAYS 322 90 TO 119 DAYS 328 120 TO 149 DAYS 332 150 TO 179 DAYS 335 180 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 322 30 DAYS 325 60 DAYS 330 90 DAYS CERTIFICATES OF DEPOSIT 263 ONE MONTH 270 TWO MONTHS 276 THREE MONTHS 294 SIX MONTHS 318 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 311 ONE MONTH 323 THREE MONTHS 338 SIX MONTHS BANKERS ACCEPTANCES 310 30 DAYS 314 60 DAYS 318 90 DAYS 324 120 DAYS 328 150 DAYS 333 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 7/16 3 5/16 FOUR MONTHS 3 1/2 3 3/8 FIVE MONTHS 3 9/16 3 7/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 9/16 SIX MONTHS 3 15/16 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 7 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 314 13 WEEKS 330 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 727 60 DAYS 734 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 723 60 DAYS 733 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 525 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 9306110066 930611 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 AES CORP 75 MILLION OF SENIOR SUBORDINATED NOTES DUE JUNE 15 2000 PRICED AT PAR TO YIELD 975 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FOUR YEARS THE ISSUE IS RATED BA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY JP MORGAN SECURITIES INC THE PRICING WAS MADE IN CONJUNCTION WITH AN OFFERING OF 25 MILLION SHARES OF AES CORP COMMON STOCK PRICED AT 28875 APIECE THAT OFFERING WAS MANAGED BY A GROUP OF DEALERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP ALLSTATE CORP 850 MILLION THREEPART ISSUE OF NOTES AND DEBENTURES PRICED THROUGH DEALERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE OFFERING INCLUDES A 300 MILLION ISSUE OF NOTES DUE JUNE 15 1998 PRICED AS 5875S AT 99781 TO YIELD 5926 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 06 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE THE OFFERING ALSO INCLUDES A 300 MILLION ISSUE OF NOTES DUE JUNE 15 2003 PRICED AT PAR TO YIELD 675 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 07 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE ALLSTATE ALSO OFFERED 250 MILLION OF DEBENTURES DUE JUNE 15 2013 PRICED AS 75S AT 99763 TO YIELD 7523 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 065 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND ALL THREE TRANCHES ARE RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P SEARS ROEBUCK & CO OWNS 82 OF ALLSTATE AMERICAN GENERAL FINANCE CORP 150 MILLION OF NOTES DUE JUNE 15 1996 PRICED AS 5S AT 99884 TO YIELD 5042 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 04 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH GOLDMAN SACHS & CO AMERICAN GENERAL FINANCE IS A UNIT OF AMERICAN GENERAL CORP AON CORP 150 MILLION OF NOTES DUE JUNE 15 2003 PRICED AS 67S AT 99733 TO YIELD 6737 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 068 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA2 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO COMPUSA INC 110 MILLION OF SENIOR SUBORDINATED NOTES DUE JUNE 15 2000 PRICED AT PAR TO YIELD 95 ACCORDING TO MCM CORPORATEWATCH THE SIZE OF THE OFFERING WAS RAISED FROM A PLANNED 85 MILLION NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED SINGLEB2 BY MOODY'S AND SINGLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO EPIC HEALTHCARE GROUP INC 160 MILLION OF SENIOR SUBORDINATED NOTES DUE JUNE 1 2003 PRICED AT PAR TO YIELD 10875 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED SINGLEB3 BY MOODY'S AND TRIPLECPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO FORD MOTOR CO 200 MILLION OF DEBENTURES DUE JUNE 15 2043 PRICED AS 775S AT 98678 TO YIELD 7856 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 098 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA2 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO HUNTINGTON NATIONAL BANK 100 MILLION OF SUBORDINATED NOTES DUE JUNE 15 2003 PRICED AS 675S AT 99669 TO YIELD 6796 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 075 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS HUNTINGTON NATIONAL BANK IS A UNIT OF HUNTINGTON BANCSHARES INC MUSICLAND STORES CORP 110 MILLION OF SENIOR SUBORDINATED NOTES DUE JUNE 15 2003 PRICED AT PAR TO YIELD 9 ACCORDING TO MCM CORPORATEWATCH THE ISSUE NONCALLABLE FOR FIVE YEARS IS RATED SINGLEB1 BY MOODY'S AND SINGLEBPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY DONALDSON LUFKIN & JENRETTE SECURITIES CORP PRIMERICA CORP 200 MILLION OF NOTES DUE JUNE 15 2000 PRICED AS 6125S AT 9919 TO YIELD 627 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 058 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO CHASE MANHATTAN CORP 22 MILLION SHARES PRICED AT 2950 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO CREATIVE TECHNOLOGY LTD 35 MILLION COMMON SHARES PRICED AT 2850 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO DEPARTMENT 56 INC INITIAL OFFERING OF 46 MILLION COMMON SHARES PRICED AT 18 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO HOLLY RESIDENTIAL PROPERTIES INC INITIAL OFFERING OF 6640000 COMMON SHARES PRICED AT 23 APIECE THROUGH UNDERWRITERS LED BY OPPENHEIMER & CO NORTHWESTERN STEEL & WIRE CO INITIAL OFFERING OF SEVEN MILLION COMMON SHARES PRICED AT 8 APIECE THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS SASKATCHEWAN OIL & GAS CORP 10 MILLION COMMON SHARES SOLD TO CANADIAN UNDERWRITERS FOR 975 CANADIAN DOLLARS US761 APIECE VARIETY CORP FOUR MILLION COMMON SHARES PRICED AT 3275 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO BURLINGTON RESOURCES COAL SEAM GAS ROYALTY TRUST INITIAL OFFERING OF 77 MILLION TRUST UNITS PRICED AT 2050 APIECE THROUGH UNDERWRITERS LED BY SMITH BARNEY HARRIS UPHAM & CO CONTRA COSTA COUNTY CALIF 125 MILLION 199394 SERIES A TAX AND REVENUE ANTICIPATION NOTES APPARENTLY WON BY THREE FIRMS IN COMPETITIVE BIDDING THE NOTES ARE DUE JULY 29 1994 AND ARE RATED MIG1 BY MOODY'S AND SP1PLUS BY S&P PRUDENTIAL SECURITIES INC IS BELIEVED TO HAVE WON 75 MILLION OF THE NOTES WITH A BID SETTING THE NET INTEREST COST AT 2828 THE NOTES HAVE A 325 COUPON AND ARE PRICED TO YIELD 275 CITICORP SECURITIES MARKETS INC'S 25 MILLION OF NOTES WERE EVIDENTLY WON WITH AN NET INTEREST COST OF 2833 THE NOTES ARE ALSO 325S PRICED TO YIELD 275 PAINEWEBBER INC IS BELIEVED TO HAVE WON 25 MILLION OF THE SECURITIES WITH AN NET INTEREST COST OF 2814 THE NOTES HAVE A 325 COUPON BUT AREN'T FORMALLY REOFFERED AT THIS TIME FEDERAL NATIONAL MORTGAGE ASSOCIATION 400 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PAINEWEBBER INC THE OFFERING SERIES TRUST 1993117 IS BACKED BY THE AGENCY'S 15YEAR 65 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 71 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 148 YEARS MONEY STORE 214 MILLION OF HOMEEQUITYLOAN ASSETBACKED CERTIFICATES PRICED IN FOUR PARTS THROUGH SOLE UNDERWRITER PRUDENTIAL SECURITIES INC ACCORDING TO MCM CORPORATEWATCH THE CERTIFICATES IN THE DEAL THE MONEY STORE HOME EQUITY LOAN TRUST 1993B ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P BASED ON AN 100 INSURANCE GUARANTEE FROM THE MUNICIPAL BOND INVESTORS ASSURANCE CORP THE 1015 MILLION IN CLASS A1 CERTIFICATES ARE PRICED AS 54S AT 99 30/32 TO YIELD 5378 A 110BASISPOINT SPREAD ABOVE THE TREASURY'S TWOYEAR NOTE THE CERTIFICATES HAVE A 197YEAR AVERAGE LIFE AND A LEGAL FINAL MATURITY OF JULY 17 2005 THE 217 MILLION IN CLASS A2 CERTIFICATES ARE PRICED AS 6975S AT 99 28/32 TO YIELD 7049 A 135BASISPOINT SPREAD ABOVE THE TREASURY'S SEVENYEAR NOTE THE CERTIFICATES HAVE A 771YEAR AVERAGE LIFE AND A LEGAL FINAL MATURITY OF JUNE 15 2008 THE CLASS A1 AND CLASS A2 CERTIFICATES ARE BACKED BY 15YEAR SECONDMORTGAGE LOANS THE 846 MILLION IN CLASS A3 CERTIFICATES ARE PRICED AS 61S AT 99 31/32 TO YIELD 609 A 145BASISPOINT SPREAD ABOVE THE TREAURY'S THREEYEAR NOTE THE 63 MILLION IN CLASS A4 CERTIFICATES ARE PRICED AS 75S AT 99 26/32 TO YIELD 7603 A 155BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 1292 YEARS AND A LEGAL FINAL MATURITY OF JUNE 15 2023 THE CLASS A3 AND CLASS A4 CERTIFICATES ARE BACKED BY 25YEAR TO 30YEAR SECOND MORTGAGES ABBEY NATIONAL TREASURY SERVICES PLC UK PARENT 150 MILLION CANADIAN DOLLARS OF 75 EUROBONDS DUE JULY 16 1998 AT ISSUE PRICE 101369 VIA BARCLAYS DE ZOETE WEDD LTD AND WOOD GUNDY INC REOFFERED AT 99794 TO YIELD 755 MARGIN 57 BASIS POINTS ABOVE COMPARABLE CANADIAN GOVERNMENT BOND AT LAUNCH FEES 1875 POINTS CAISSE NATIONALE DES AUTOROUTE FRANCE 17 BILLION FRENCH FRANCS OF 675 EUROBONDS DUE JULY 8 1999 REOFFERED AT 99617 VIA CREDIT COMMERCIAL DE FRANCE AND UBS LTD THE BONDS YIELD 683 A 20BASISPOINT MARGIN ABOVE SEVENYEAR FRENCH GOVERNMENT NOTE AT LAUNCH FEES 03 POINT CREDIT LOCAL DE FRANCE FRANCE 10 BILLION SPANISH PESETAS OF 104 EUROBONDS DUE JULY 1 1998 AT ISSUE PRICE 10131 VIA BANCO ESPAGNOL DE CREDITO BANESTO AND BANQUE NATIONALE DE PARIS MADRID YIELD 1045 AT BREAKEVEN PRICE FOR COMANAGING BANKS FEES 1625 POINTS CREDIT LYONNAIS FRANCE ONE BILLION FRENCH FRANCS OF 7 EUROBONDS DUE FEB 2 1998 REOFFERED AT 9981 VIA CREDIT LYONNAIS YIELD 707 AT REOFFER PRICE MARGIN 515 BASIS POINTS ABOVE FRENCH TREASURY'S 95 NOTE DUE IN 1998 FEES 025 POINT ELI LILLY & CO US 150 MILLION OF 55 EURONOTES MATURING JULY 8 1998 AT ISSUE PRICE 101369 VIA MORGAN STANLEY INTERNATIONAL REOFFERED AT 99744 TO YIELD 556 A MARGIN OF 15 BASIS POINTS ABOVE THE FIVEYEAR TREASURY NOTE AT LAUNCH FEES 1875 POINTS EURODIF MULTINATIONAL ONE BILLION FRENCH FRANCS OF 7 EUROBONDS DUE JULY 12 2000 AT ISSUE PRICE 1003 VIA SOCIETE GENERAL AND JP MORGAN & CIE REOFFERED AT 98775 TO YIELD 723 MARGIN 45 BASIS POINTS ABOVE COMPARABLE TREASURY AT LAUNCH FEES 1875 POINTS REPUBLIC OF ICELAND SOVEREIGN 125 MILLION OF 6 EUROBONDS DUE JULY 16 1998 AT ISSUE PRICE 100805 VIA GOLDMAN SACHS INTERNATIONAL REOFFERED AT 9923 TO YIELD 618 A 75BASISPOINT MARGIN ABOVE FIVEYEAR US TREASURY NOTE AT LAUNCH AT SAME TIME ICELAND IS RECALLING FLOATINGRATE NOTE DUE JULY 2000 FEES 1875 POINTS STRUCTURED ASSET SECURITIES CORP TRUST III SPECIALPURPOSE DELAWARE TRUST 1213 MILLION OF EUROBONDS BACKED BY PORTFOLIO OF US COMMERCIAL MORTGAGES VIA LEHMAN BROTHERS INTERNATIONAL INTEREST PAID AT 90 BASIS POINTS ABOVE ONEMONTH LONDON INTERBANK OFFERED RATE SUBJECT TO MAXIMUM 10 ISSUE PRICE PAR FINAL MATURITY JUNE 20 2005 AVERAGE LIFE OF 45 YEARS EXPECTED BACKED BY 13 COMMERCIAL MORTGAGES FROM PROPERTY PORTFOLIO OF STATE OF CONNECTICUT FEES NOT DISCLOSED TREASURY CORP OF VICTORIA AUSTRALIA 150 MILLION OF 875 EUROBONDS DUE JULY 9 2003 REOFFERED AT 9991 VIA UBS LTD YIELD 875 AT REOFFER PRICE MARGIN 62 BASIS POINTS ABOVE 8 GILT DUE 2003 GUARANTOR AUSTRALIAN STATE OF VICTORIA FEES 0375 POINT 9306110065 930611 STOCK ACTIVITY OF ANDREA ELECTRONICS SPARKS SEC INQUIRY AS SHARES PLUNGE BY JYOTI THOTTAM STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK ANDREA ELECTRONICS CORP'S BIZARRE MARKET PERFORMANCE TOOK ANOTHER TURN AS THE COMPANY DISCLOSED THAT THE SECURITIES AND EXCHANGE COMMISSION IS CONDUCTING AN INFORMAL INQUIRY THE SMALL ELECTRONICS COMPANY SAID THE SEC'S INQUIRY WAS RELATED TO THE TRADING ACTIVITY OF ITS STOCK BUT ADDED THAT NO FORMAL INVESTIGATION HAS BEGUN YESTERDAY ANDREA STOCK CLOSED ON THE AMERICAN STOCK EXCHANGE AT 31875 DOWN 9625 ON VOLUME OF 564500 SHARES THE STOCK WHICH SPLIT 5FOR1 IN EARLY JUNE TRADED AS HIGH AS 5375 A SHARE FOLLOWING THE SPLIT LAST WEEK COMPARED WITH AN ADJUSTED YEARLY LOW OF UNDER 2 AN SEC SPOKESMAN DECLINED TO COMMENT ON ANDREA'S ANNOUNCEMENT THE AMEX RECENTLY IMPOSED A 100 MARGIN REQUIREMENT ON THE STOCK THE FIRST SUCH STEP IN SEVEN YEARS TO TEMPER SPECULATION THE RULE MEANS THAT PURCHASERS CAN'T BUY THE STOCK USING BORROWED MONEY THE EXCHANGE YESTERDAY DIDN'T RESPOND TO QUESTIONS ABOUT ANDREA'S RECENT TRADING THERE HAS BEEN LITTLE TO ACCOUNT FOR THE TRADING FRENZY WHICH HAS TAKEN ON THE ATTRIBUTES OF A SHORT SQUEEZE DUE TO A RELATIVELY SMALL AMOUNT OF STOCK AVAILABLE FOR TRADING PRIOR TO THE RECENT SPLIT ONLY ABOUT 50 OF THE LONG ISLAND CITY NY COMPANY'S 500000 SHARES WERE CONSIDERED TO BE IN PUBLIC HANDS INVESTORS WHO SELL STOCK SHORT EXPECTING IT TO FALL GET SQUEEZED WHEN THERE'S LITTLE STOCK AVAILABLE AND THEY ARE COMPELLED TO COVER THEIR POSITION AT A LOSS BY PAYING HIGHER PRICES ANDREA WHICH IN 1992 HAD SALES OF 34 MILLION AND A NET LOSS OF 690000 EARLIER THIS YEAR INDICATED THAT IT IS WORKING ON ACTIVE NOISECANCELLATION PRODUCTS TO DAMP BACKGROUND NOISE ON PUBLIC PAY TELEPHONES BUT IT HASN'T ANNOUNCED ANY SALES OF THE PRODUCT AND THERE HASN'T BEEN ANY INFORMATION TO SUGGEST WHY THE MARKET WOULD SUDDENLY BOOST THE COMPANY'S PAPER VALUE TO 135 MILLION SPOKESMEN FOR MAJOR TELEPHONE COMPANIES HAVE SAID THEY AREN'T FAMILIAR WITH THE PRODUCT ANDREA'S LATEST ANNOUNCEMENT SHED LITTLE NEW LIGHT ON THE SPECULATION EVERYONE IS ASKING WHO IS ANDREA ELECTRONICS CORP AND WHAT DO THEY DO THE COMPANY DECLARED ANDREA HAS BEEN DELUGED WITH CALLS FROM SHAREHOLDERS BROKERS AND JOURNALISTS TRYING TO OBTAIN CONFIDENTIAL NONPUBLIC INFORMATION ABOUT THE NEW ACTIVE NOISECANCELLATION PRODUCTS THE COMPANY SAID THAT CURRENTLY IT'S INVOLVED IN CONFIDENTIAL NEGOTIATIONS WITH CERTAIN COMPANIES IN THE PUBLIC TELEPHONE INDUSTRY FOR THE SALE OF ITS NOISECANCELLATION KITS THE NAMES OF THESE COMPANIES ARE NOT BEING DISCLOSED AT THIS TIME SINCE NO DEFINITIVE AGREEMENT HAS BEEN ENTERED INTO ANDREA SAID THE COMPANY SAID IT DEMONSTRATED THE EQUIPMENT AT A PAYPHONE INDUSTRY TRADE SHOW LAST NOVEMBER AT ANOTHER TRADE SHOW IN APRIL AND AT ITS MAY ANNUAL MEETING THE ANC PUBLIC PHONE KIT IS CURRENTLY BEING TESTED AT BELLCORE THE TESTING LABORATORY FOR THE REGIONAL BELL OPERATING COMPANIES ANDREA ADDED ASKED FOR COMMENT BELLCORE SAID IT IS PERFORMING A TECHNICAL AUDIT OF ANDREA'S PRODUCT BUT ADDED THAT BELLCORE DOES NOT ENDORSE OR CERTIFY ANY PRODUCT OR SERVICE OR GUARANTEE ITS PERFORMANCE A SPOKESWOMAN EMPHASIZED THAT BELLCORE'S ACTIVITIES SHOULDN'T BE DESCRIBED AS A TEST OFTEN SHE SAID TECHNICAL AUDITS ARE PERFORMED AT THE REQUEST OF A MANUFACTURER BUT SHE COULDN'T IMMEDIATELY DETERMINE WHETHER THAT WAS THE CASE WITH ANDREA 9306110064 930611 SPORTS BASEBALL HOPES TO BE A BIG HIT IN EUROPE BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL WITH EVERYONE ELSE GOING GLOBAL WHY NOT MAJOR LEAGUE BASEBALL THE SPORT HAS CAUGHT ON IN SOME OVERSEAS MARKETS MOST NOTABLY JAPAN AND LATIN AMERICA BUT ORGANIZED BASEBALL FROM THE US HAS YET TO SCORE BIG IN WHAT IT CONSIDERS ITS POTENTIALLY MOST LUCRATIVE FOREIGN REGION EUROPE NOW THE MAJOR LEAGUES PLAN TO SEND AT LEAST TWO TEAMS OVERSEAS FOR A GOODWILL TOUR TRYING TO CREATE ENOUGH OF A MARKET TO GENERATE BIG MERCHANDISING AND BROADCASTING REVENUES THE GREATEST POTENTIAL FOR THE GROWTH FINANCIALLY AND IN TERMS OF THE GAME IS IN EUROPE SAYS BOB SMITH PRESIDENT OF THE INTERNATIONAL BASEBALL ASSOCIATION THE GOVERNING BODY FOR AMATEUR BASEBALL EUROPEANS HAVE A HIGH LEVEL OF DISPOSABLE INCOME AND A TASTE FOR SPORTS INDEED EUROPEAN RETAIL SALES OF LEAGUELICENSED MERCHANDISE ARE EXPECTED TO CLIMB TO BETWEEN 85 MILLION 100 MILLION THIS YEAR COMPARED WITH A RELATIVELY MERE 300000 IN 1989 THE LATEST FIGURE STILL PALES COMPARED WITH THE GLOBAL 24 BILLION LAST YEAR BUT NO OTHER REGION HAS EXPERIENCED SUCH EXPONENTIAL GROWTH AND EUROPEAN SALES COULD CLIMB TO 500 MILLION OVER THE NEXT DECADE SAYS FRANK HEFFRON PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MAJOR LEAGUE BASEBALL INTERNATIONAL PARTNERS WHICH CONSISTS OF MLB ITSELF THE NBC UNIT OF GENERAL ELECTRIC CO AND A BRITISH MARKETING COMPANY PASCOE NALLY INC STILL IT'S A TOUGH SELL EUROPE REMAINS A BASTION OF HIGHINTENSITY LOWCOST SOCCER WHOSE DEVOTED FANS PACK STADIUMS SO TIGHTLY THAT MANY STAND FOR ENTIRE GAMES TO THEM BASEBALL MAY SEEM AS TAME AS SHUFFLEBOARD AND UNNECESSARILY COSTLY WITH ITS EXPENSIVE EQUIPMENT AND SPECIAL FIELDS AMATEUR LEAGUES EXIST THERE BUT THEY PLAY IN TINY STADIUMS AND LACK BASEBALLSAVVY COACHES AND GET ONLY PERFUNCTORY PRESS ATTENTION EUROPE SIMPLY LACKS THE BASEBALL HISTORY OF THE US YOU'VE GOT TO GO AGAINST TRADITION SAYS ALDO NOTARI PRESIDENT OF THE CONFEDERATION OF EUROPEAN BASEBALL AMATEURS HE SAYS A TOUR OF US MAJORLEAGUE TEAMS IN EUROPE WOULD DRAW ATTENTION TO BASEBALL JUST AS SOCCER TO PERHAPS A GREATER EXTENT WILL BENEFIT FROM THE WORLD CUP COMING TO THE US IN 1994 IT WOULD PROVIDE A MAJOR PIECE OF AMMUNITION IN WHAT HE TERMS A WAR AGAINST SOCCER TO WIN PLAYERS AND FANS ON THE OTHER HAND THE TWO SPORTS ARE MOSTLY PLAYED IN DIFFERENT SEASONS AND WITH THE POSSIBLE EXCEPTION OF CRICKET IN ENGLAND BASEBALL IN EUROPE MIGHT NOT FACE ALL THAT MUCH COMPETITION IN SUMMER THE TOUR IS HARDLY A NEW IDEA AS EARLY AS 1908 THE MAJOR LEAGUES WERE VISITING JAPAN TO HELP POPULARIZE THE SPORT AND THE NATIONAL FOOTBALL LEAGUE WENT TO EUROPE IN 1986 STAGING ITS FIRST AMERICAN BOWL IN LONDON BETWEEN THE CHICAGO BEARS AND THE DALLAS COWBOYS THEN SUPER BOWL CONTENDERS AND DRAWING 60000 SINCE THEN SUCH GAMES HAVE HELPED PROPEL RETAIL SALES OF FOOTBALL LEAGUELICENSED MERCHANDISE TO BETWEEN 175 MILLION AND 200 MILLION IN EUROPE FROM ABOUT 7 MILLION THE NATIONAL BASKETBALL ASSOCIATION TOO HAS BEEN SENDING PLAYERS OVERSEAS SINCE THE LATE 1980S PITTING ONE OF ITS TOP TEAMS AGAINST EUROPE'S BEST EACH YEAR AND PLAYING A SERIES OF GAMES TO SELLOUT CROWDS IN PARIS MADRID ROME AND BARCELONA SPAIN THE NBA DOESN'T BREAK OUT EUROPEAN MERCHANDISING SALES BUT OVERSEAS SALES CLIMBED 129 TO 128 MILLION IN THE 199192 SEASON DETAILS ARE STILL BEING PIECED TOGETHER FOR BASEBALL'S FIRST EUROPEAN TOUR OFFICIALS FROM MLB INTERNATIONAL PARTNERS AND THE MAJOR LEAGUE BASEBALL PLAYERS ASSOCIATION THE PLAYERS' UNION WILL TRAVEL TO EUROPE THIS MONTH TO CHECK OUT CITIES AND STADIUMS SAYS MR HEFFRON AN ANNOUNCEMENT IS POSSIBLE BY THE ALLSTAR GAME ON JULY 13 GAMES WHEN SCHEDULED WOULD PROBABLY BE PLAYED IN ENGLAND SPAIN FRANCE HOLLAND AND ITALY TO DATE MAJOR LEAGUE BASEBALL HAS BEEN RELYING ON ITS THREEYEAROLD MLB INTERNATIONAL PARTNERS TO PROMOTE AND MARKET THE SPORT OVERSEAS THE PARTNERSHIP BEGAN ITS EUROPEAN FORAY BY PUSHING TELEVISION EXPOSURE SELLING SPONSORSHIP OF BROADCAST GAMES INCLUDING THE ALLSTAR GAME AND THE WORLD SERIES AND OFFERING A WEEKLY SHOW DURING THE SEASON THAT INCLUDED A BASEBALL TUTORIAL AT AN ANNUAL CONFERENCE IT TEACHES BASEBALL LEAGUES FROM AROUND THE GLOBE ABOUT PLAYER DEVELOPMENT LICENSING PRODUCTS AND TV CONTRACTS AND FOR THE PAST TWO YEARS IT HAS BEEN SENDING COLLEGE COACHES AND BALLPLAYERS TO SUCH COUNTRIES AS AUSTRIA ITALY SLOVENIA UKRAINE FRANCE FINLAND AND ENGLAND THE IDEA IS TO BUILD A LOYAL AND KNOWLEDGEABLE FAN BASE THAT WILL BUY MLB CAPS AND TSHIRTS LESS AS A FASHION STATEMENT THAN FOR LOVE OF THE SPORT THE EFFORTS ARE PAYING OFF ITALY HAS 40 LIGHTED 10000SEAT FIELDS UP FROM 10 SUCH FIELDS A DECADE AGO THE SPORT IS ALSO CATCHING ON IN THE FORMER SOVIETBLOC MEANWHILE US SPORTSMERCHANDISE MANUFACTURERS ARE DOING THEIR SHARE INFILTRATING EUROPE ALBEIT SLOWLY MAKERS OF BASEBALL EQUIPMENT SAY IT'S TOUGH TO GET STORES TO CARRY THEIR GOODS AND WHEN THEY DO THE STORES RARELY UNDERSTAND WHAT PRODUCTS THEY NEED STILL SPORTSEQUIPMENT MAKERS ARE WILLING TO SHELL OUT MONEY NOW IN ANTICIPATION OF REAPING PROFITS IN THE FUTURE THE EASTON SPORTS INC UNIT OF JAS D EASTON CORP VAN NUYS CALIF WHICH OPENED A SALES OFFICE AND WAREHOUSE IN AMSTERDAM TWO YEARS AGO SPONSORS BASEBALL GROUPS IN MOST EUROPEAN COUNTRIES IN A BID TO ESTABLISH A BRAND NAME EUROPE IS WHERE THE NEXT GREAT CHASE WILL BE SAYS JIM DARBY EASTON SPORTS SENIOR VICE PRESIDENT PROMOTIONS 9306110063 930611 HEALTHCO UNIT SEEKS CHAPTER 11 STATUS TWO SUITS DROPPED WORCESTER MASS HEALTHCO INTERNATIONAL INC A TROUBLED DENTAL SUPPLY COMPANY TAKEN PRIVATE IN 1991 BY DALLASBASED INVESTMENT FIRM HICKS MUSE & CO FILED FOR FEDERAL CHAPTER 11 BANKRUPTCYCOURT PROTECTION THE ACTION TOOK PLACE WEEKS AFTER HICKS MUSE AND APOLLO ADVISORS LP CONTROLLED BY LEON BLACK THE FORMER DREXEL BURNHAM LAMBERT MERGERS AND ACQUISITIONS SPECIALIST DROPPED OPPOSING LAWSUITS OVER HOW TO KEEP THE COMPANY AFLOAT APOLLO AND THREE AFFILIATES CONTROL 44 OF HEALTHCO'S SUBORDINATED DEBT AND 11 OF THE COMMON STOCK OF HEALTHCO HOLDING CORP HEALTHCO INTERNATIONAL'S PARENT THE SUPPLIER OF EQUIPMENT AND SERVICES TO DENTISTS DENTAL SCHOOLS AND LABORATORIES LISTED LIABILITIES OF ABOUT 240 MILLION INCLUDING 100 MILLION IN BANK DEBT AND 60 MILLION OWED TO SUBORDINATED NOTE HOLDERS HICKS MUSE OWNS 20 OF THE NOTES THE UNIT LISTED ASSETS OF 270 MILLION A SPOKESMAN SAID HEALTHCO NEEDS ABOUT 15 MILLION TO MAKE ENDS MEET SPECIFICS OF THE BANKRUPTCY COURT PROVISIONS WERE NOT GIVEN GARY L COOPER HEALTHCO INTERNATIONAL'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THE COMPANY EXPECTS TO HAVE DEBTORINPOSSESSION FINANCING IN PLACE NEXT WEEK MEETING FINANCIAL OBLIGATIONS FOR ONGOING OPERATION AMONG OTHER HOLDINGS HICKS MUSE OWNS CONTROLLING INTEREST IN COMPANIES SUCH AS MORNINGSTAR GROUP INC A MAKER OF SPECIALTY DAIRY PRODUCTS AND LIFE PARTNERS GROUP INC A LIFE INSURANCE CONCERN 9306110062 930611 SENATE DEMOCRATS SCALE BACK PROPOSALS TO LIFT FUEL TAX CUT HEALTH PROGRAMS BY JACKIE CALMES AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATS ON THE SENATE FINANCE COMMITTEE WERE SCALING BACK BOTH A PROPOSED TAX INCREASE ON TRANSPORTATION FUELS AND CUTS IN FEDERAL HEALTH PROGRAMS AS THEY CONTINUED TO HAGGLE OVER A PACKAGE AIMED AT REDUCING THE BUDGET DEFICIT SEN MAX BAUCUS D MONT WHO HAD BEEN GONE ALL WEEK BECAUSE OF HIS FATHER'S DEATH EMERGED AS THE CHIEF FOE OF THE ADDITIONAL LEVY ON GASOLINE AND OTHER TRANSPORT FUELS THAT TAX INCREASE WHICH DEMOCRATIC LEADERS HAD SUGGESTED BE SET AS HIGH AS 93 CENTS A GALLON WAS RETURNED TO THE 73CENT LEVEL FIRST PROPOSED BY SEN JOHN BREAUX D LA AFTER SEVERAL SENATORS OBJECTED TO THE HIGHER NUMBER THE CURRENT FEDERAL GASOLINE TAX IS 141 CENTS A GALLON THE SENATORS WANT TO KEEP THE FUELTAX INCREASE BELOW THE 75 CENTS A GALLON THAT WOULD RESULT FROM THE BROADBASED ENERGY TAX PROPOSED BY PRESIDENT CLINTON THE TRANSPORTATIONFUEL TAX HAS SURFACED IN THE SENATE DELIBERATIONS AS AN ALTERNATIVE TO THE CLINTON TAX WHICH DREW SO MUCH OPPOSITION IN THE SENATE THAT IT THREATENED THE PRESIDENT'S WHOLE 496 BILLION DEFICITREDUCTION PROGRAM NO MATTER WHAT THE FINANCE COMMITTEE ENDS UP WITH THE TAX BILL STILL HAS TO GO TO THE SENATE FLOOR AND THEN TO A CONFERENCE WITH THE HOUSE WHERE MANY DEMOCRATS ARE UNHAPPY WITH THE CHANGES BEING CONSIDERED IN THE SENATE THE ADMINISTRATION IS WALKING A TIGHTROPE TRYING TO HELP FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN GET A BILL OUT OF HIS FRACTURED PANEL WITHOUT ALIENATING ADMINISTRATION SUPPORTERS IN THE HOUSE THE SENATE AND HOUSE WILL NATURALLY HAVE SOME DISAGREEMENTS BUT WHEN WE WIND UP IN CONFERENCE WE CAN PERHAPS GET THE BEST BILL OF ALL PRESIDENT CLINTON SAID UNTIL THE SENATE ACTS WE CAN'T GO TO CONFERENCE WHAT THE FINAL SHAPE OF THE ENERGY PORTION OF THIS WILL BE NO ONE CAN NOW SAY BECAUSE THAT WILL HAVE TO AWAIT THE CONFERENCE A TAX OF 73 CENTS A GALLON ON TRANSPORTATION FUELS WOULD RAISE ABOUT 40 BILLION OVER FIVE YEARS 30 BILLION LESS THAN MR CLINTON'S BROAD ENERGY TAX THE DIFFERENCE WOULD HAVE TO COME FROM NEW RESTRAINTS ON SPENDING OR FROM OTHER TAX INCREASES IF THE SENATE IS TO MEET ITS DEFICITREDUCTION GOAL SEN MOYNIHAN A NEW YORK DEMOCRAT CONSISTENTLY HAS SAID MEDICARE WOULD BEAR THE BRUNT BUT SEVERAL DEMOCRATS SAID PRESSURE IS INCREASING TO RAISE THE CORPORATE TAX RATE TO 36 FROM THE CURRENT 34 MR CLINTON INITIALLY PROPOSED A 36 RATE BUT AGREED TO 35 WHEN THE HOUSE PASSED HIS PLAN EACH PERCENTAGE POINT ON THE CORPORATE RATE YIELDS ABOUT 15 BILLION OVER FIVE YEARS SQUEEZING MEDICARE AND MEDICAID THE HEALTHCARE PROGRAMS FOR THE ELDERLY AND THE POOR IS NEARLY AS CONTROVERSIAL AS AN ENERGY TAX MR CLINTON'S PROPOSAL ALREADY GETS 56 BILLION OUT OF THE TWO PROGRAMS OVER THE NEXT FIVE YEARS SEN JAY ROCKEFELLER D WVA A KEY FINANCE COMMITTEE FOE OF HITTING THE HEALTH PROGRAMS HARDER THAN MR CLINTON HAS ALREADY INSISTED THAT THEY SHOULD BE PARED BY NO MORE THAN 15 BILLION AFTER YESTERDAY'S COMMITTEE CAUCUS SEN ROCKEFELLER SAID I THINK WE'RE MAKING REAL PROGRESS ON THAT ISSUE THE PROSPECT OF SQUEEZING MEDICARE HAS RILED THE INFLUENTIAL AMERICAN ASSOCIATION OF RETIRED PERSONS WHICH TO DATE HAS QUIETLY SUPPORTED THE PRESIDENT'S DEFICITREDUCTION EFFORT IN HIS SPIRIT OF SHARED SACRIFICE BUT AARP HEAD JOHN ROTHER SAID IT'S NOT SHARED SACRIFICE WHEN YOU'RE EXEMPTING THE BIG CONTRIBUTORS IN THE ENERGY SECTOR AND LOADING MORE BURDEN ONTO THE MORE VULNERABLE ELDERLY FINANCE COMMITTEE DEMOCRATS MEET AGAIN TODAY BEHIND CLOSED DOORS AIMING TO AGREE ON A BILL NEXT WEEK SO THAT THE FULL SENATE CAN ACT BY MONTH'S END CRITICS OF THE TAX BILL ARE CERTAIN TO OFFER AMENDMENTS ON THE FLOOR BUT UNDER SENATE RULES THEY CAN'T USE A FILIBUSTER TO STOP IT DEMOCRATS CAN'T AFFORD TO LOSE MANY OF THEIR 56 VOTES IN THE SENATE BECAUSE ALL THE REPUBLICANS ARE EXPECTED TO VOTE AGAINST THE TAX BILL THE GOP ISN'T PARTICIPATING IN THE CONTINUING TALKS ADMINISTRATION OFFICIALS AND CONGRESSIONAL LEADERS ARE STRESSING TO RESTLESS LAWMAKERS AND INTEREST GROUPS THAT THEY SHOULD HOLD THEIR FIRE UNTIL A HOUSESENATE CONFERENCE COMMITTEE AGREES TO A FINAL PRODUCT THAT WAS THE MESSAGE FROM REP DAN ROSTENKOWSKI D ILL CHAIRMAN OF THE HOUSE WAYS AND MEANS COMMITTEE AND WHITE HOUSE BUDGET DIRECTOR LEON PANETTA AT A HOUSE LEADERSHIP MEETING REP BARBARA KENNELLY D CONN A MEMBER OF THE LEADERSHIP CIRCLE COUNSELED AFTERWARD WHY DON'T WE SEE WHAT THE SENATORS PUT TOGETHER BEFORE WE CONDEMN AT A MEETING OF THE HOUSE DEMOCRAT WHIP ORGANIZATION YESTERDAY DEMOCRATIC NATIONAL CHAIRMAN DAVID WILHELM WAS LAMBASTED FOR THE PARTY'S FAILURE TO ORGANIZE GRASSROOTS SUPPORT FOR THE CLINTON DEFICITREDUCTION INITIATIVE IN RESPONSE THE DEMOCRATIC NATIONAL COMMITTEE PLANS TO SPONSOR RADIO ADVERTISEMENTS PROMOTING THE PLAN IN DISTRICTS OF HOUSE DEMOCRATS WHO WON BY NARROW MARGINS MR ROSTENKOWSKI DEFENDED THE PRESIDENT AGAINST ATTACKS STILL SIMMERING IN THE HOUSE YESTERDAY AFTER NEWS THAT THE PRESIDENT HAD RETREATED FROM HIS ORIGINAL ENERGY TAX THIS GUY HASN'T SOLD US OUT HE SAID HE FAVORS OUR HOUSEPASSED BILL TREASURY SECRETARY LLOYD BENTSEN WHO MADE HEADLINES EARLIER THIS WEEK WHEN HE SAID THE ORIGINAL ENERGYTAX PROPOSAL WAS DEAD SAID THAT THE ADMINISTRATION STILL PREFERS ITS VERSION BUT BOWED TO THE POLITICAL REALITY THAT THE SENATE WON'T APPROVE IT IF WE DO NOT GET OUR PREFERENCE HE SAID THEN YOU LOOK TO WHAT YOU CAN GET A MAJORITY FOR AND STILL MEET YOUR DEFICITREDUCTION OBJECTIVE NEITHER MR CLINTON NOR HIS TOP ADVISERS WILL SAY PUBLICLY IF THEY WILL ACCEPT A TRANSPORTATIONFUELS TAX AS A SUBSTITUTE FOR THE ADMINISTRATION'S ENERGY TAX WHICH WAS BASED ON THE HEAT CONTENT OF FUELS AS MEASURED IN BRITISH THERMAL UNITS OR BTUS I WANT THE ENERGY TAX TO BE PROCONSERVATION AND AS BROADBASED AS POSSIBLE MR CLINTON SAID ABOUT 80 OF THE REVENUE GENERATED BY A TRANSPORTATIONFUELS TAX WOULD COME FROM GASOLINE AND DIESEL USED BY CARS AND TRUCKS SEN BAUCUS'S OPPOSITION TO THE TRANSPORTATION TAX REFLECTS CONCERNS OF LAWMAKERS FROM LARGE MOSTLY RURAL WESTERN STATES WE DRIVE GREATER DISTANCES THE MONTANAN ARGUED BUT MORE IMPORTANT WE HAVE TO SHIP OUR PRODUCTS TO MARKET OVER GREATER DISTANCES HE SAID THE BREAUX PROPOSAL TO REPLACE A BTU ENERGY TAX WITH A TRANSPORTATION TAX AND MEDICARE CUTS IS DEFICITREDUCTION TAKEN OFF THE BACKS OF CORPORATE AMERICA AND ONTO THE BACKS OF SENIOR CITIZENS AND WORKING STIFFS AND SPARSELY POPULATED STATES TIMOTHY NOAH CONTRIBUTED TO THIS ARTICLE 9306110061 930611 PROGRAM TRADING NEW YORK PROGRAM TRADING IN THE WEEK ENDED JUNE 4 ACCOUNTED FOR 81 OR AN AVERAGE 209 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 84 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 20 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 371 THE PREVIOUS WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 323 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 482 INVOLVED TRADING FOR CUSTOMERS AN ADDITIONAL 195 WAS EXECUTED BY FIRMS' USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COOPER NEFF EXECUTED ALL OF ITS PROGRAM TRADING FOR ITS OWN ACCOUNT WHILE NOMURA SECURITIES FIRST BOSTON MORGAN STANLEY AND SALOMON BROTHERS DID MOST OF THEIR PROGRAM TRADING FOR THEIR CUSTOMERS 9306110060 930611 BUSINESS BRIEF TRACOR INC PENN CENTRAL SUBSIDIARY'S PURCHASE SET FOR 94 MILLION TRACOR INC SAID IT AGREED TO BUY VITRO CORP A SUBSIDIARY OF PENN CENTRAL CORP CINCINNATI FOR 94 MILLION TRACOR BASED IN AUSTIN TEXAS SAID VITRO SILVER SPRING MD WILL CONTINUE OPERATING UNDER ITS OWN NAME AS A SUBSIDIARY OF TRACOR VITRO PERFORMS SYSTEMS ENGINEERING SOFTWARE AND INFORMATION ENGINEERING AND RELATED TECHNICAL AND MANAGEMENT FUNCTIONS FOR THE DEFENSE DEPARTMENT THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION INDUSTRIAL AGENCIES INTERNATIONAL CUSTOMERS AND THE INTELLIGENCE COMMUNITY FOR 1992 VITRO POSTED SALES OF 414 MILLION TRACOR IS WIDELY DIVERSIFIED AND AMONG OTHER THINGS IS A MANAGEMENT AND TECHNICALSUPPORT CONTRACTOR IN COMMUNICATIONS AND SONAR FOR 1992 IT HAD SALES OF 2618 MILLION THE TRANSACTION IS SUBJECT TO CERTAIN CONDITIONS AND TO TRACOR'S ABILITY TO COMPLETE FINANCING ON ACCEPTABLE TERMS 9306110059 930611 FARM WORKERS UNION LOSES 29 MILLION JURY VERDICT YUMA ARIZ AP THE UNITED FARM WORKERS LOST A 29 MILLION JURY VERDICT TO A CALIFORNIA AGRIBUSINESS COMPANY THAT CONTENDED THE UNION HAD FALSELY ACCUSED IT OF MISTREATING ITS WORKERS AND MISUSING TOXIC CHEMICALS THE CASE CONSUMED THE FINAL DAYS OF UNION LEADER CESAR CHAVEZ WHO WAS IN SOUTHWESTERN ARIZONA TO TESTIFY IN THE CIVIL TRIAL WHEN HE DIED APRIL 22 A YUMA COUNTY SUPERIOR COURT JURY DELIBERATED FOR LESS THAN A DAY BEFORE AWARDING SALINAS CALIF GROWER BRUCE CHURCH INC 2898280 IN COMPENSATORY DAMAGES AND 1000 IN PUNITIVE DAMAGES CHURCH CONTENDED THAT THE UNION MADE THE ACCUSATIONS IN A FIVEYEAR BOYCOTT LAUNCHED TO WIN A FAVORABLE UNION CONTRACT SUPPORTERS OF THE UNION HAD HELD A ROUNDTHECLOCK VIGIL OUTSIDE THE COURTHOUSE SAYING A VERDICT FOR THE FARM COMPANY COULD DESTROY THE UNION OFFICIALS HAVE SAID THE CALIFORNIABASED UFW HAS JUST 2 MILLION IN ASSETS UFW SECRETARYTREASURER DAVID MARTINEZ VOWED TO APPEAL THE VERDICT BCI HAS NOT HEARD THE LAST OF US WE WILL BE STRONGER THAN EVER MARTINEZ SAID 9306110058 930611 DOW CORNING WINS SUIT BY WOMAN CLAIMING BREAST IMPLANT INJURY DENVER DOW CORNING CORP SAID IT WON A LAWSUIT BROUGHT AGAINST IT HERE BY A WOMAN WHO CONTENDED THAT HER SILICONE BREAST IMPLANTS CAUSED IMMUNESYSTEM ILLNESS DOW CORNING A MIDLAND MICH JOINT VENTURE OF DOW CHEMICAL CO AND CORNING CORP HAS PREVIOUSLY LOST MULTIMILLIONDOLLAR VERDICTS IN SUCH CASES ANOTHER COMPANY BRISTOLMYERS SQUIBB CO LOST A 25 MILLION DECISION RECENTLY ALSO FOR ILLNESSES ALLEGEDLY STEMMING FROM SILICONE DOW CORNING WAS THE FIRST AND THE LEADING MANUFACTURER OF THE SILICONE GEL USED IN IMPLANTS AND FOR DECADES MANUFACTURED THE DEVICES BUT IN RECENT MONTHS THE COMPANY DROPPED OUT OF THAT BUSINESS AFTER THE FEDERAL FOOD AND DRUG ADMINISTRATION RAISED QUESTIONS ABOUT THE SAFETY OF SILICONE IMPLANTS LAST YEAR THE US AGENCY SHARPLY LIMITED THEIR SALE RESTRICTING THEM TO WOMEN PARTICIPATING IN A RELATIVELY SMALL CLINICAL TRIAL 9306110057 930611 HEARD ON THE STREET FORD'S SHARE OF US AUTO MARKET LOOKS FINE BUT ANALYSTS WONDER WHERE THE PROFITS WENT BY JACQUELINE MITCHELL STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT ON THE SURFACE THINGS LOOK AWFULLY GOOD AT FORD MOTOR FIVE OF THE 10 BESTSELLING VEHICLES IN THE US WEAR THE FORD BADGE THE COMPANY'S SHARE OF THE US CAR AND LIGHTTRUCK MARKET ROSE TO 257 IN THE FIRST FIVE MONTHS OF THE YEAR UP 15 PERCENTAGE POINTS FROM A YEAR AGO AND ITS NORTH AMERICAN ASSEMBLY PLANTS ARE RUNNING AT A BRISK 111 OF STRAIGHTTIME CAPACITY MEANING THE FACTORIES ARE WORKING PLENTY OF OVERTIME MANY ANALYSTS ARE CALLING THE SHARES A BUY AND SOME EVEN BELIEVE FORD'S STOCK IS UNDERVALUED AT THE CURRENT PRICE OF 54 5/8 UP 1/8 YESTERDAY IT'S WORTH AT LEAST 60 SAYS JOHN CASESA WERTHEIM SCHRODER'S AUTO ANALYST TROUBLE IS WALL STREET CAN'T FIGURE OUT WHY FORD ISN'T MAKING A BIGGER PROFIT ON ITS CORE NORTH AMERICAN OPERATIONS THE NO 2 AUTO MAKER'S SALES GROWTH RATE CONTINUES TO OUTPACE THAT OF THE ENTIRE INDUSTRY YET FORD IS HAVING TROUBLE TURNING SALES GAINS INTO PROFITS FORD EARNED 572 MILLION OR 102 A SHARE IN THE FIRST QUARTER LITTLE MORE THAN CHRYSLER'S 530 MILLION EVEN THOUGH CHRYSLER HAD LESS THAN HALF AS MUCH REVENUE WE'RE EXPECTING TO SEE SOME IMPROVEMENTS IN NORTH AMERICA FINANCIAL RESULTS IN THE SECOND QUARTER SAYS MR CASESA WHO RATES FORD STOCK A BUY BUT IF WE DON'T HE WARNS IT COULD BE VERY DISTRESSING FORD NOW HAS TO EXPLAIN WHY IT IS MARGINALLY PROFITABLE WHEN CHRYSLER'S PROFITS ARE GREAT SAYS MARYANN N KELLER AUTO ANALYST AT FURMAN SELZ INC I HAVE A HOLD' ON FORD'S STOCK CHRYSLER IS THE ONE TO BUY CHRYSLER CLOSED YESTERDAY AT 45 5/8 OFF 3/8 PAINEWEBBER'S STEPHEN GIRSKY ECHOES MR CASESA'S BUY RATING ON FORD BUT ALSO HIS CONCERN ABOUT PROFITABILITY THE ABSENCE OF BETTER PROFITS IN NORTH AMERICA IS DEPRESSING FORD'S STOCK SAYS MR GIRSKY ONE OF FORD'S EARNINGS PROBLEMS IS THAT ITS TWO EUROPEAN BUSINESSES FORD OF EUROPE AND JAGUAR ARE INCURRING LOSSES CHRYSLER HAS A FAR SMALLER PRESENCE IN EUROPE BUT THE REAL ISSUE FOR MOST ANALYSTS IS WHY FORD'S NORTH AMERICAN EARNINGS AREN'T BIGGER THE EXPLANATIONS VARY BUT MANY SUSPECT FORD IS SACRIFICING PROFITS TO BOOST MARKET SHARE AT THIS LEVEL OF PRODUCTION THEY SHOULD BE REPORTING HIGHER PROFITS SAYS PRUDENTIAL SECURITIES' PHILIP FRICKE WHO HAS A HOLD ON FORD'S STOCK THEIR MARKETING COSTS ARE VERY HIGH TO A CERTAIN EXTENT THEY ARE BUYING MARKET SHARE CONSIDER FORD'S WILLINGNESS TO WAIVE THE ONEPRICE STRATEGY ON ITS ESCORTS FOR STARTERS FORD SET CASH REBATES OF AS MUCH AS 500 KNOCKING DOWN THE PRICE TO 10399 FROM THE ADVERTISED 10899 SOME CUSTOMERS PAY EVEN LESS ONE TOLEDO OHIO WOMAN RECENTLY BOUGHT A NEW AIRCONDITIONED ESCORT WAGON FOR 9200 FORD AND ITS DEALERS WILL BARGAIN ON THE ONEPRICE ESCORT BECAUSE OF STIFF COMPETITION FROM GENERAL MOTORS' CHEVROLET CAVALIER A DECADEOLD LESSSOPHISTICATED CAR GM MANAGED TO CUT THE PRICE THANKS TO AN INNOVATIVE PLANTSCHEDULE AGREEMENT WITH THE UNITED AUTO WORKERS AND ADDED ANTILOCK BRAKES TO THE STANDARD CAVALIER THE CAVALIER WAS THE BESTSELLING US CAR IN APRIL WHILE FORD RECENTLY CLOSED ONE ESCORT PLANT FOR A WEEK BECAUSE OF SLOW SALES ANALYSTS ALSO FRET ABOUT FORD'S WARRANTY COSTS FORD DEALERS SAY THE COMPANY IS MORE WILLING THAN IN PREVIOUS YEARS TO AUTHORIZE FACTORYPAID WORK ON CARS WITH EXPIRED WARRANTIES TO SOOTHE CUSTOMERS ALL THIS IS TRUE THE COMPANY CONCEDES BUT UNLIKE WALL STREET WHICH VIEWS THE MOVES AS ADDED COSTS FORD SEES THEM AS PRUDENT INVESTMENTS WE DON'T FEEL WE HAVE BEEN BUYING MARKET SHARE SAYS DAVID N MCCAMMON FORD'S VICE PRESIDENT FOR FINANCE EACH INCREMENTAL SALE IS WELL WORTH THE EXTRA COST MARKETING COSTS ARE RUNNING SLIGHTLY HIGHER THAN PLANNED FOR 1993 BUT WE'RE STILL DOWN FROM 1992 FORD SAYS WARRANTY REPAIRS ARE MORE GENEROUS THIS YEAR THAN LAST BUT MR MCCAMMON SAYS THE COSTS DROPPED IN THE FIRST QUARTER FROM THE FOURTH HE ATTRIBUTES HIGHER OUTOFWARRANTY REPAIRS TO PAINT PROBLEMS ON CERTAIN OLDERMODEL PICKUP TRUCKS AND EMISSIONS PROBLEMS ON OTHER OLDER VEHICLES WE'RE TAKING ACTION WITH DEALERS TO MAKE SURE CUSTOMERS ARE HAPPY INVESTORS SEEM VERY CONFIDENT IN FORD'S DEBTPAYING ABILITY YESTERDAY FORD SOLD 200 MILLION OF NONCALLABLE 50YEAR DEBENTURES PRICED TO YIELD 7856 ONLY 098 PERCENTAGE POINT MORE THAN THE YIELD ON 30YEAR TREASURY BONDS AND FORD'S MARKETING AND WARRANTY STRATEGY COULD HELP THE COMPANY IN THE LONG RUN ANALYSTS SAY BUT THEY CAUTION THAT FORD NEEDS TO SHOW A MARKED IMPROVEMENT IN NORTH AMERICAN PROFITS IN THE CURRENT QUARTER A REPEAT OF THE FIRST QUARTER'S PERFORMANCE COULD HURT THE STOCK THEIR SHARE IS UP BUT THEIR PROFITS AREN'T SAID PAINEWEBBER'S MR GIRSKY IT IS SOMETHING TO PAY ATTENTION TO 9306110056 930611 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY THREE STEPS TO BECOMING A SUCCESSFUL INVESTOR BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL INVESTING CAN BE AS SIMPLE AS 1 2 3 FIRST YOU DECIDE HOW YOU'RE GOING TO DIVVY UP YOUR PORTFOLIO AMONG BROAD CATEGORIES LIKE STOCKS BONDS AND MONEY MARKET INSTRUMENTS SECOND YOU DECIDE HOW YOU WANT TO DIVERSIFY WITHIN EACH OF THESE CATEGORIES WHEN IT COMES TO PICKING BOND MARKET INVESTMENTS FOR INSTANCE YOU MIGHT CHOOSE TO BUY A MIX OF CORPORATE BONDS GOVERNMENT BONDS AND FOREIGN BONDS FINALLY HAVING SETTLED ON TARGET PERCENTAGES FOR THESE VARIOUS INVESTMENTS YOU PICK THE BEST MUTUAL FUNDS OR THE BEST INDIVIDUAL SECURITIES TO BUILD YOUR DESIRED PORTFOLIO THE FIRST DECISION HOW TO DIVIDE YOUR PORTFOLIO AMONG STOCKS BONDS AND MONEY MARKET INSTRUMENTS IS THE MOST CRITICAL YOUR ASSET ALLOCATION IS THE FUEL IN THE RETURN ENGINE SAYS JOHN CAMMACK A VICE PRESIDENT WITH BALTIMORE'S T ROWE PRICE ASSOCIATES MUTUAL FUND COMPANY HOW SHOULD YOU DIVIDE YOUR MONEY AMONG THE THREE MAJOR ASSETS THE ACCOMPANYING STORIES IN THIS ISSUE HIGHLIGHT SOME OF THE SPECIAL CONSIDERATIONS FOR PEOPLE IN EACH OF THREE BROAD AGE GROUPS 20S AND 30S 40S AND 50S AND 60S PLUS SEE RELATED STORY SMART INVESTING THROUGH THE AGES WSJ JUNE 11 1993 BUT IN GENERAL HOW YOU SHOULD ALLOCATE YOUR INVESTMENT MONEY DEPENDS ON YOUR TIME HORIZON IF YOU ARE GOING TO NEED YOUR MONEY IN THE NEAR FUTURE THEN MONEY MARKET INSTRUMENTS LIKE CERTIFICATES OF DEPOSIT SAVINGS ACCOUNTS AND MONEY FUNDS MAKE A LOT OF SENSE THESE INVESTMENTS WILL NEVER MAKE YOU RICH BUT THERE'S ALSO LITTLE OR NO CHANCE YOU WILL LOSE MONEY BUT IF YOU PLAN TO INVEST FOR ANYTHING MORE THAN A COUPLE OF YEARS STICKING WITH CDS AND SAVINGS ACCOUNTS CAN BE A TERRIBLE MISTAKE WHILE THESE SUPERSAFE INVESTMENTS MAY ELIMINATE THE RISK THAT YOU'LL LOSE MONEY OVER THE SHORT TERM THEY LEAVE YOU WIDE OPEN TO A POTENTIALLY MORE DANGEROUS RISK THE RISK THAT THE REAL VALUE OF YOUR MONEY WILL BE GRADUALLY EATEN AWAY BY INFLATION BECAUSE OF THE THREAT FROM INFLATION INVESTMENT ADVISERS TYPICALLY FAVOR A HEFTY DOSE OF STOCKS OR STOCK MUTUAL FUNDS PROVIDING YOU PLAN TO INVEST FOR AT LEAST FIVE YEARS IF YOU THINK OF RISK AS THE CHANCE THAT YOU'LL LOSE MONEY IN THE SHORT TERM THEN STOCKS ARE INDEED EXTREMELY RISKY BUT IF YOU HAVE THE TENACITY TO STICK WITH YOUR STOCK INVESTMENTS OVER FIVE YEARS OR LONGER THEN THE CHANCE OF LOSING MONEY IS SLIM JUST CONSIDER THIS SID OF 1925 THERE HAVE BEEN 63 ROLLING FIVEYEAR PERIODS STARTING WITH THE FIVE YEARS ENDED DECEMBER 1930 CONTINUING ON TO THE FIVE YEARS THROUGH DECEMBER 1931 AND EVENTUALLY CONCLUDING WITH THE FIVE YEARS FINISHING IN DECEMBER 1992 OUT OF THOSE 63 FIVEYEAR PERIODS THERE HAVE BEEN ONLY SEVEN OCCASIONS WHEN STOCKS LOST MONEY ACCORDING TO DATA COMPILED BY IBBOTSON ASSOCIATES INC A CHICAGO CONSULTING FIRM FIVE OF THOSE SEVEN PERIODS OCCURRED BEFORE 1942 FOUR OF THEM DURING THE GREAT DEPRESSION SINCE THEN THERE HAVE BEEN ONLY TWO FIVEYEAR STRETCHES WHEN STOCKS HAVE LOST MONEY NOT ONLY ARE STOCKS UNLIKELY TO LOSE MONEY OVER LONG TIME PERIODS THEY ALSO DO A DANDY JOB OF OUTPACING INFLATION ACCORDING TO IBBOTSON ASSOCIATES STOCKS HAVE RETURNED 103 A YEAR SINCE THE END OF 1925 THAT COMPARES WITH 52 A YEAR FOR INTERMEDIATETERM GOVERNMENT BONDS AND 37 ANNUALLY FOR TREASURY BILLS INFLATION HAS RUN AT A 31 ANNUAL RATE OVER THE SAME PERIOD STOCKS HAVE THUS EARNED 72 PERCENTAGE POINTS A YEAR MORE THAN INFLATION SINCE 1925 COMPARED WITH AN ANNUAL 21 PERCENTAGE POINTS ABOVE INFLATION FOR INTERMEDIATETERM GOVERNMENT BONDS THE STELLAR RETURNS NOTCHED UP BY STOCKS CAN TRANSLATE INTO BIG SUMS OF MONEY BECAUSE OF THE WAY THAT MONEY COMPOUNDS OVER TIME IF YOU FIGURE IN INFLATION IT WOULD TAKE JUST 10 YEARS FOR YOUR STOCK MARKET MONEY TO DOUBLE IN VALUE BASED ON HISTORICAL RETURNS AND BONDS HISTORY SUGGESTS THAT YOU WOULD HAVE TO WAIT MORE THAN 33 YEARS TO SEE YOUR MONEY GROW 100 BECAUSE STOCKS PERFORM HANDSOMELY OVER LONG PERIODS FINANCIAL ADVISERS USUALLY SUGGEST PUTTING A LARGE CHUNK OF A RETIREMENT PORTFOLIO INTO THE STOCK MARKET THE MORE YEARS YOU HAVE TO GO UNTIL RETIREMENT THE BIGGER THAT CHUNK SHOULD BE BONDS AND MONEY MARKET INSTRUMENTS ADD SOME DOWNSIDE PROTECTION TO A PORTFOLIO AS A RESULT THEY CAN BE PARTICULARLY APPROPRIATE FOR OLDER INVESTORS WHO DON'T HAVE DECADES TO RECOUP THEIR LOSSES FROM ANY BIG STOCK MARKET DROP BUT THESE DAYS FINANCIAL ADVISERS SAY THAT EVEN RETIREES SHOULD KEEP A HEALTHY PORTION OF THEIR PORTFOLIOS IN STOCKS WITHIN THE BROAD STOCK AND BOND CATEGORIES INVESTORS SHOULD TRY TO OWN A WIDE ARRAY OF SECURITIES SAYS LEWIS J ALTFEST PRESIDENT OF LJ ALTFEST & CO A MANHATTAN INVESTMENT ADVISER AMONG STOCK MARKET INVESTMENTS FOR INSTANCE MR ALTFEST ADVISES OWNING RISKY FOREIGN STOCKS SMALLCOMPANY STOCKS AND FASTEXAPANDING GROWTH STOCKS BUT HE THINKS THESE RISKIER SECURITIES SHOULD BE COMBINED WITH MORE SEDATE STOCK MARKET INVESTMENTS LIKE VALUE STOCKS WHICH ARE CHEAP COMPARED WITH CURRENT EARNINGS OR CORPORATE ASSETS AND INCOME STOCKS WHICH PAY HEFTY DIVIDENDS BY INCLUDING A WIDE RANGE OF SECURITIES INVESTORS CAN MAKE THEIR PORTFOLIOS FAR MORE TRANQUIL THAN IF THEY OWNED JUST ONE OR TWO STOCKS AND BONDS INVESTMENT ADVISER JOHN BLANKINSHIP JR BELIEVES MUTUAL FUNDS ARE THE BEST WAY TO TAP INTO THE SECURITIES MARKETS BECAUSE THEY ALLOW SMALL INVESTORS TO BUY DIVERSIFIED PORTFOLIOS RUN BY PROFESSIONAL MONEY MANAGERS FUNDS ARE ESPECIALLY USEFUL FOR BUYING INTO EXOTIC AREAS LIKE FOREIGN STOCKS AND HIGHYIELD JUNK BONDS WHICH ARE DIFFICULT FOR INVESTORS TO TAP INTO DIRECTLY UNLESS YOUR PORTFOLIO IS WORTH 2 MILLION OR MORE IT'S DIFFICULT TO GET PROPER DIVERSIFICATION BY BUYING INDIVIDUAL SECURITIES ARGUES MR BLANKINSHIP OF BLANKINSHIP & FOSTER A DEL MAR CALIF INVESTMENT FIRM MR BLANKINSHIP DOESN'T ALWAYS USE MUTUAL FUNDS THOUGH I MAKE AN EXCEPTION FOR TREASURY SECURITIES WHICH INVESTORS CAN BUY DIRECTLY FROM THE FEDERAL RESERVE WITHOUT PAYING A COMMISSION INVESTORS MAY ALSO WANT TO SKIP MUTUAL FUNDS WHEN IT COMES TO BUYING US STOCKS SAYS JOHN MARKESE PRESIDENT OF CHICAGO'S AMERICAN ASSOCIATION OF INDIVIDUAL INVESTORS HE SAYS HE BELIEVES DILIGENT INVESTORS MAY BE ABLE TO ADD TO THEIR RETURNS BY PICKING INDIVIDUAL STOCKS ESPECIALLY IF THEY BARGAIN HUNT AMONG SMALLERCOMPANY STOCKS THAT ARE LESS CLOSELY FOLLOWED BY WALL STREET ANALYSTS AND THUS ARE MORE LIKELY TO BE UNDERVALUED PICKING GOOD INVESTMENTS IS JUST ONE PART OF SUCCESSFUL INVESTING THE OTHER PART IS HOLDING DOWN COSTS LIKE BROKERAGE COMMISSIONS MUTUAL FUND ANNUAL EXPENSES AND TAXES INVESTORS WILLING TO MAKE INVESTMENT DECISIONS ON THEIR OWN CAN SAVE MONEY AND THEREBY BOOST THEIR RETURNS BY USING A DISCOUNT BROKERAGE FIRM AND BY BUYING NOLOAD MUTUAL FUNDS WHICH DON'T CHARGE A SALES COMMISSION AND ALL INVESTORS CAN CUT DOWN ON TAXES BY MAKING FULL USE OF INDIVIDUAL RETIREMENT ACCOUNTS TAXDEFERRED VARIABLE ANNUITIES AND EMPLOYERSPONSORED 401K RETIREMENT PLANS MR MARKESE SAYS INVESTORS SHOULD STRIVE TO KEEP THEIR FINANCES SIMPLE MOST INVESTORS HE SAYS SHOULD PROBABLY OWN NO MORE THAN EIGHT MUTUAL FUNDS AND NO MORE THAN 15 INDIVIDUAL STOCKS OF COURSE THE WORLD OF INVESTMENT OPTIONS DOESN'T END WITH MUTUAL FUNDS AND INDIVIDUAL STOCKS WHAT ABOUT ALL THOSE OTHER INVESTMENTS LIKE LIMITED PARTNERSHIPS COMMODITY POOLS PENNY STOCKS OPTIONS AND FUTURES MOST OF THOSE THINGS ARE EITHER VERY DIFFICULT TO UNDERSTAND OR IMPOSSIBLE TO UNDERSTAND FOR INDIVIDUAL INVESTORS SAYS MR MARKESE DON'T INVEST IN ANYTHING THAT YOU DON'T FULLY UNDERSTAND THERE'S A WHOLE LAUNDRY LIST OF THINGS TO AVOID FROM PENNY STOCKS TO EXOTIC DERIVATIVES ASSET ALLOCATION IF YOU DECIDE TO PUT 30 OF YOUR PORTFOLIO IN BONDS 50 IN STOCKS AND 20 IN A MONEY MARKET FUND YOU'VE JUST MADE AN ASSETALLOCATION DECISION HOW YOU ALLOCATE YOUR ASSETS IS THE BIGGEST DETERMINANT OF YOUR INVESTMENT RETURNS FOR INSTANCE EVEN IF YOU OWN THE BESTPERFORMING MONEY FUND OVER TIME YOU WILL NEVER DO AS WELL AS SOMEBODY WHO OWNS A MEDIOCRE STOCK FUND COMPOUNDING WALL STREETERS LOVE TO TALK ABOUT THE MAGIC OF COMPOUNDING WHAT MAGIC IF YOU EARN 10 A YEAR FOR FOUR YEARS YOU DON'T EARN 40 BUT 464 THE REASON AS TIME GOES ON YOU MAKE MONEY NOT ONLY ON YOUR ORIGINAL INVESTMENT BUT ALSO ON YOUR EARLIER GAINS DIVERSIFICATION A FANCY WORD FOR DON'T PUT ALL YOUR EGGS IN ONE BASKET BY DIVERSIFYING AND THUS OWNING A BUNCH OF DIFFERENT SECURITIES YOU AVOID THE RISK THAT YOUR PORTFOLIO WILL GET SEVERELY HURT BECAUSE A SINGLE STOCK OR BOND TURNS SOUR GROWTH THIS LABEL IS APPLIED BOTH TO A STYLE OF INVESTING AND TO A TYPE OF MUTUAL FUND GROWTH MUTUAL FUNDS INVEST FOR CAPITAL GAINS THEY DON'T NECESSARILY USE THE GROWTHSTOCK INVESTMENT STYLE WHICH INVOLVES BUYING STOCKS THAT HAVE THE POTENTIAL FOR RAPID EARNINGS GROWTH RISK LIKE BEAUTY IT'S IN THE EYE OF THE BEHOLDER STOCKS ARE CONSIDERED RISKY BECAUSE THEY CAN SUFFER SHARP SHORTTERM LOSSES IN VALUE BUT IF YOU'RE A LONGTERM INVESTOR WHO'S CONCERNED ABOUT PRESERVING THE PURCHASING POWER OF YOUR MONEY THEN STOCKS AREN'T NEARLY AS RISKY AS BONDS OR MONEY FUNDS TOTAL RETURN THIS IS THE TRUE RETURN EARNED BY AN INVESTOR IT REFLECTS NOT ONLY THE YIELD THE DIVIDEND AND INTEREST PAYMENTS YOU GET BUT ANY CHANGE IN THE PRICE OF THE SECURITY AS MANY HIGHYIELD JUNKBOND INVESTORS FOUND OUT IN 1989 AND 1990 IT'S QUITE POSSIBLE TO HAVE AN INVESTMENT THAT HAS A GREAT YIELD AND AN ATROCIOUS TOTAL RETURN VALUE MONEY MANAGERS WHO USE THE VALUE INVESTING STYLE LOOK FOR STOCKS THAT ARE CHEAP BASED ON CORPORATE ASSETS OR CURRENT EARNINGS THESE INVESTORS ARE OFTEN CONTRASTED WITH GROWTHSTOCK INVESTORS WHO LEAN TOWARD PRICIER STOCKS 9306110055 930611 BUSINESS BRIEF AIR FRANCE ATTALI SAYS HE'S WEIGHING ASSET SALES TO REDUCE DEBT AIR FRANCE CHAIRMAN BERNARD ATTALI SAID HE WOULD CONSIDER ASSET SALES TO HELP REDUCE THE DEBT LOAD OF THE LOSSPLAGUED STATEOWNED AIRLINE IN AN INTERVIEW IN THE FRENCH DAILY LA TRIBUNE MR ATTALI SAID NO PLANS HAVE BEEN ANNOUNCED FOR THE SALE OF ITS MERIDIEN HOTEL CHAIN BUT HE NOTED THAT MOST AIRLINE COMPANIES ARE GETTING OUT OF THE HOTEL BUSINESS I'M LETTING THE PROPOSALS ROLL IN HE WAS QUOTED AS SAYING THERE'S NO SHORTAGE HE ALSO SAID THAT HE WASN'T OPPOSED TO OUTSIDE SHAREHOLDERS TAKING A MINORITY STAKE IN THE GROUP'S MAINLY DOMESTIC UNIT AIR INTER PRIVATIZATION OF AIR FRANCE ITSELF MUST WAIT UNTIL THE GROUP'S BUSINESS PROSPECTS IMPROVE HE SAID ATTALI SAID THAT THE GROUP'S PRODUCTIVITY IS EXPECTED TO IMPROVE BY 13 THIS YEAR AFTER A CONCERTED EFFORT TO CUT COSTS AND REDUCE STAFF HE SAID THAT THE AIRLINE'S DEBT LOAD OF 21 BILLION FRANCS 382 BILLION IS NORMAL IN THE INDUSTRY AND REPRESENTS A 33 DEBTTOEQUITY RATIO AIR FRANCE HAS HAD LOSSES TOTALING 47 BILLION FRANCS SINCE 1990 327 BILLION FRANCS IN 1992 ALONE 9306110054 930611 UMW EXPANDS STRIKE TO 16 MORE COAL MINES A WALL STREET JOURNAL NEWS ROUNDUP THE UNITED MINE WORKERS OF AMERICA EXPANDED ITS FIVEWEEKOLD STRIKE TO INCLUDE 16 ADDITIONAL MINES OWNED BY THE NATION'S TWO LARGEST COALPRODUCING COMPANIES PEABODY HOLDING CO AND CONSOL ENERGY INC SOME 3000 MINERS WILL JOIN THE STRIKE AGAINST HANSON PLC'S PEABODY AND CONSOL MEMBER COMPANIES OF THE BITUMINOUS COAL OPERATORS ASSOCIATION BRINGING THE NUMBER OF STRIKERS TO ALMOST 12000 THE NEWLY TARGETED MINES ARE IN WEST VIRGINIA ILLINOIS AND FOR THE FIRST TIME KENTUCKY THE EXTENSION COMES AMID INDICATIONS THAT THE MARKET HAS BEEN AFFECTED WE ARE STARTING TO HEAR THAT SPOT COAL PRICES IN THESE TARGETED STRIKE REGIONS ARE BEGINNING TO SHOW SIGNS OF APPRECIATION SAID RAFAEL A VILLAGRAN AN ANALYST WITH SHEARSON LEHMAN BROTHERS IN NEW YORK THIS IS CLEARLY DUE TO THE SUPPLY DISRUPTION CAUSED BY THE STRIKE PRIOR TO THE RECENT EXPANSION WORKERS WERE ON STRIKE IN PENNSYLVANIA ILLINOIS INDIANA AND OHIO THE UNION SAID IT IS STRIKING OVER THE LACK OF JOB SECURITY PROMISED TO UNION WORKERS BY BCOA MEMBERS IT ALSO CHARGED THE PRODUCERS WITH UNFAIR LABOR PRACTICES AND THE REFUSAL TO PROVIDE THE UNION WITH INFORMATION NEEDED FOR CONTRACT NEGOTIATIONS THE BCOA MAINTAINS ITS CONTRACT PROPOSAL IS FAIR AND SAYS IT IS OPEN TO DISCUSSION THIS WEEK PEABODY FILED A SERIES OF LAWSUITS AND CHARGES OF UNFAIR LABOR AGAINST THE UMW SEEKING DAMAGES FOR WORK SLOWDOWNS IN ITS MINES 9306110053 930611 BUSINESS BRIEF KANEBO LTD JAPANESE COMPANY POSTS PRETAX LOSS FOR FISCAL YEAR KANEBO LTD A JAPANESE TEXTILE AND FASHION GOODS MAKER REPORTED IT SUSTAINED A CONSOLIDATED PRETAX LOSS OF 277 BILLION YEN 26 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 SWINGING FROM PROFITABILITY IN THE PRIOR YEAR THE LOSS COMPARED WITH PROFIT OF 127 BILLION YEN FOR THE PREVIOUS YEAR THE COMPANY POSTED A NET LOSS OF 1030 BILLION YEN COMPARED WITH A NET LOSS OF 606 BILLION YEN A YEAR EARLIER SALES FELL 32 TO 65971 BILLION YEN FROM 68135 BILLION YEN THE COMPANY SAID IN A STATEMENT THAT IT EXPECTS TO TURN A SLIGHT CONSOLIDATED PROFIT IN THE CURRENT FISCAL YEAR WHICH RUNS THROUGH NEXT MARCH DESPITE THE JAPANESE ECONOMY'S CONTINUED SLUGGISHNESS KANEBO SUSTAINED ITS MAIN SETBACK IN TEXTILES AS SALES SLID 92 TO 26701 BILLION YEN DURING THE FISCAL YEAR ENDED MARCH 31 FROM 29417 BILLION YEN A YEAR EARLIER TEXTILES REPRESENTED 41 OF TOTAL SALESTHE LARGEST SINGLE CATEGORYCOMPARED WITH 43 IN THE PRIOR YEAR SALES OF ELECTRONICS ALSO TOOK A HIT TUMBLING 11 TO 3005 BILLION YEN FROM 3390 BILLION YEN 9306110052 930611 BUSINESS BRIEF SHIONOGI & CO PRETAX PROFIT CLIMBED 29 IN YEAR ON 98 SALES RISE SHIONOGI & CO A LEADING JAPANESE PHARMACEUTICAL MAKER SAID ITS CONSOLIDATED PRETAX PROFIT SWELLED 29 TO 24 BILLION YEN 225 MILLION IN THE FISCAL YEAR ENDED MARCH 31 FOR THE YEAREARLIER PERIOD SHIONOGI REPORTED PRETAX PROFIT OF 1859 BILLION YEN SALES ROSE 98 TO 34822 BILLION YEN FROM 31708 BILLION THE COMPANY SAID ITS BUSINESS ENVIRONMENT WAS SEVERE WITH THE JAPANESE GOVERNMENT MANDATING CUTS IN DRUG PRICES AVERAGING 81 AND TAKING OTHER INDUSTRYWIDE SHAKEUP MEASURES BUT PROFIT MARGINS ROSE IT SAID AS THE YEN'S STRENGTHENING AGAINST OTHER MAJOR CURRENCIES LOWERED THE COST OF RAW MATERIALS IMPORTED INTO JAPAN AND MANAGEMENT EMBRACED COSTCUTTING MEASURES SHIONOGI ALSO NOTED THAT THE INCLUSION OF JAPAN ELLANCO CO AS A CONSOLIDATED SUBSIDIARY BOOSTED SALES AND PROFIT 9306110051 930611 FINANCING BUSINESS VICTORIA FINANCIAL CORP VICTORIA FINANCIAL CORP SAID DIRECTORS APPROVED A PUBLIC OFFERING WHICH IT ANTICIPATES WILL CONSIST OF ABOUT THREE MILLION SHARES OF COMMON STOCK THE CLEVELANDBASED SPECIALTY INSURANCE COMPANY WOULD OFFER DURING THE THIRD QUARTER ABOUT 22 MILLION NEW COMMON SHARES AND ABOUT 800000 SHARES WOULD BE SOLD BY AN UNIDENTIFIED INSTITUTIONAL INVESTOR VICTORIA ALSO SAID THAT ITS BOARD APPROVED A REVERSE ONEFOR25 COMMONSTOCK SPLIT BUT SAID THE SPLIT WOULDN'T BECOME EFFECTIVE UNTIL CERTAIN REGULATORY REQUIREMENTS ARE SATISFIED THE PAY AND RECORD DATES HAVEN'T BEEN DETERMINED COMPANY OFFICIALS SAID CURRENTLY THE COMPANY HAS ABOUT 64 MILLION COMMON SHARES OUTSTANDING YESTERDAY IN OVERTHECOUNTER TRADING VICTORIA COMMON WAS QUOTED AT 525 A SHARE UP 25 CENTS 9306110050 930611 BUSINESS BRIEF GRASSO CORP SPINOFF OF LINE AND PURCHASE OF SEAHAWK SERVICES PLANNED GRASSO CORP SAID IT WILL SPIN OFF ITS MARINE SERVICES BUSINESSES AND ISSUE 205 MILLION NEW COMMON SHARES TO ACQUIRE SEAHAWK SERVICES LTD FOLLOWING THE SPINOFF AND THE ACQUISITION HOUSTONBASED GRASSO WILL HAVE TWO MAIN OIL AND GAS PRODUCTION MANAGEMENT DIVISIONS OPERATING IN THE GULF OF MEXICO ONE DIVISION WOULD BE THE ORIGINAL GRASSO PRODUCTION MANAGEMENT INC AND THE OTHER WILL BE SEAHAWK SERVICES THE TRANSACTIONS ARE SUBJECT TO SHAREHOLDER APPROVAL GRASSO SHARES ROSE 25 CENTS TO 450 IN NATIONAL OVERTHECOUNTER TRADING GIVING THE SEAHAWK TRANSACTION AN INDICATED VALUE OF 92 MILLION SEAHAWK AN OFFSHORE OIL AND GAS PRODUCTION MANAGEMENT COMPANY IS JOINTLY OWNED BY OFFSHORE LOGISTICS INC OF LAFAYETTE LA AND NOBLE DRILLING CORP OF HOUSTON THE MARINE SERVICES BUSINESS TO BE SPUN OFF CONSISTS OF DOCK FACILITIES THAT SELL CRANE SERVICES AND LUBRICANTS FOR COMPANIES DRILLING IN THE GULF AS THE RECOVERY OF GAS DRILLING ACTIVITY PROCEEDS THIS BUSINESS SHOULD IMPROVE SAID GRASSO REGARDING THE ACQUISITION GRASSO EXPECTS MAJOR GROWTH OF THE COMBINED BUSINESSES SINCE HELICOPTERS ARE USED TO SERVICE THE PLATFORMS IN THE GULF THE INCREMENTAL COSTS OF SERVICING ADDITIONAL NEIGHBORING PLATFORMS IS VERY SMALL SAID A GRASSO SPOKESMAN FOLLOWING THE TRANSACTIONS GRASSO COMMON SHAREHOLDERS WILL OWN 1680000 SHARES AND OFFSHORE LOGISTICS AND NOBLE WILL EACH HAVE ABOUT 1026500 SHARES 9306110049 930611 BUSINESS BRIEF ALLIANCE CAPITAL MANAGEMENT RIGHTS OFFERINGS PLANNED BY THREE INVESTMENT FUNDS ALLIANCE CAPITAL MANAGEMENT LP NEW YORK SAID THREE OF ITS CLOSEDEND INVESTMENT FUNDS ARE PLANNING RIGHTS OFFERINGS TO SHAREHOLDERS THAT COULD RAISE ABOUT 650 MILLION ACM GOVERNMENT INCOME FUND INC FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A RIGHTS OFFERING OF 165 MILLION COMMON SHARES IT HAS ABOUT 495 MILLION SHARES OUTSTANDING SHAREHOLDERS COULD PURCHASE ONE COMMON SHARE PER THREE SHARES HELD THE RIGHTS IF FULLY EXERCISED WOULD RAISE ABOUT 200 MILLION AT CURRENT TRADING PRICES AN OFFERING DATE IS EXPECTED NEXT MONTH ACM GOVERNMENT SECURITIES FUND INC AND ACM GOVERNMENT SPECTRUM FUND SAID THEIR BOARDS CLEARED RIGHTS OFFERINGS THAT ARE SUBSTANTIALLY IDENTICAL IF THOSE RIGHTS ARE FULLY EXERCISED THE FUNDS SHOULD RAISE ABOUT 450 MILLION 9306110048 930611 BUSINESS BRIEF WELLS FARGO & CO REVAMPING BRANCH SYSTEM WILL ELIMINATE 700 POSITIONS WELLS FARGO & CO WILL ELIMINATE 700 JOBS AS PART OF A REORGANIZATION OF ITS BRANCH SYSTEM BUT THE COMPANY SAID IT EXPECTS THAT MOST OF THE EMPLOYEES AFFECTED WILL BE STEERED INTO NEW JOBS AT THE SAN FRANCISCO BANKING CONCERN WELLS FARGO HAS 30000 EMPLOYEES IT SAID THE BRANCH REORGANIZATION SEEKS TO ENABLE BRANCH MANAGERS TO FOCUS ENTIRELY ON SERVICE AS OPPOSED TO BOTH HANDLING BOTH SERVICE AND SALES IT SAID EACH BRANCH WILL NOW HAVE SPECIALISTS WHO SELL INDIVIDUAL PRODUCTS AS OPPOSED TO SALES PEOPLE WHO PITCH ALL THE BANK'S PRODUCTS AS HAS BEEN THE CASE THE SPECIALISTS WILL REPORT DIRECTLY TO SENIOR MANAGERS AT VARIOUS REGIONAL HEADQUARTERS INSTEAD OF BRANCH MANAGERS THE REORGANIZATION IS MEANT TO STREAMLINE BRANCH OPERATIONS AND INTENSIFY THE BRANCH SYSTEM'S SALES EFFORTS A SPOKESWOMAN SAID IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY WELLS FARGO ROSE 25 CENTS TO 99 9306110047 930611 BUSINESS BRIEF JOHN LABATT LTD QUARTERLY CHARGE IS PLANNED FOR COSTS OF CLOSING BREWERY JOHN LABATT LTD SAID IT WILL TAKE A CHARGE AGAINST EARNINGS OF ABOUT 20 MILLION CANADIAN DOLLARS US156 MILLION FOR COSTS RELATED TO CLOSING ITS BREWERY IN SAINT JOHN NEW BRUNSWICK THE BREWERY WHICH WILL CLOSE BY DECEMBER IS THE THIRD TO BE CLOSED BY LABATT AS PART OF ITS COSTCUTTING PROGRAM A SPOKESMAN SAID THE CHARGE WILL BE TAKEN IN THE COMPANY'S FISCAL FOURTH QUARTER ENDED APRIL 30 TO REMAIN COMPETITIVE IN A MARKETPLACE ALTERED DRAMATICALLY BY DECLINING INDUSTRY VOLUMES AND FALLING TRADE BARRIERS WE FELT WE HAD TO IMPROVE OUR EFFICIENCY BY COMBINING PRODUCTION AT FEWER BREWERIES SAID RON STEEVES GENERAL MANAGER OF LABATT'S NEW BRUNSWICK OPERATIONS LABATT WILL CONTINUE TO OPERATE NINE BREWERIES ACROSS CANADA THE SAINT JOHN BREWERY HAS 105 EMPLOYEES OUT OF LABATT'S TOTAL WORK FORCE OF ABOUT 5000 EMPLOYEES LABATT BASED IN TORONTO ALSO HAS INTERESTS IN THE ENTERTAINMENT INDUSTRY 9306110046 930611 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY SMART INVESTING THROUGH THE AGES BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL YOU'VE GOT TO START SOMEWHERE INVESTING JUST 100 A MONTH MAY NOT SEEM LIKE A LOT BUT IF YOU START SOCKING AWAY THAT SORT OF MONEY WHEN YOU'RE IN YOUR 20S OR EARLY 30S IT CAN MAKE A HUGE DIFFERENCE TO YOUR LIFESTYLE WHEN YOU FINALLY QUIT THE WORK FORCE HOW COME YOUNGER INVESTORS MAY NOT HAVE MUCH MONEY BUT THEY DO HAVE ONE BIG ADVANTAGE TIME ACCORDING TO T ROWE PRICE ASSOCIATES IF YOU INVEST 100 A MONTH STARTING AT AGE 30 BY THE TIME YOU RETIRE AT AGE 65 YOU WOULD HAVE OVER 177000 IN TODAY'S DOLLARS THIS PRESUMES THAT YOU EARN 7 A YEAR WHICH IS THE HISTORICAL RATE OF RETURN ACHIEVED BY STOCKS AFTER ADJUSTING FOR INFLATION BUT IF YOU PUT OFF SAVING FOR RETIREMENT UNTIL YOU TURN 45 ACCUMULATING THAT SAME 177000 BECOMES A LOT TOUGHER T ROWE PRICE FIGURES THAT TO AMASS 177000 YOU WOULD HAVE TO STASH 335 EVERY MONTH FROM AGE 45 TO AGE 65 WHEN YOU'RE IN YOUR 20S AND 30S GET INTO THE HABIT OF SYSTEMATIC SAVING SAYS JOHN CAMMACK A VICE PRESIDENT WITH THE BALTIMORE MUTUAL FUND COMPANY IT'S A WONDERFUL DISCIPLINE YOU MAY SEE IT AS A SACRIFICE IN YOUR 20S AND 30S BUT YOU'LL SEE IT AS YOUR SAVIOR IN YOUR 50S AND 60S HOW MUCH SHOULD YOU BE SAVING MR CAMMACK THINKS INVESTORS SHOULD ENDEAVOR TO SQUIRREL AWAY 10 OF THEIR AFTERTAX INCOME FOR THOSE WHO DON'T HAVE A LOT OF MONEY TO INVEST MUTUAL FUNDS ARE OFTEN AN IDEAL INVESTMENT MANY FUNDS DEMAND INVESTMENT MINIMUMS OF 1000 AND BELOW SOME WILL WAIVE THEIR MINIMUMS ENTIRELY PROVIDING YOU AGREE TO SAVE 25 50 OR 100 EVERY MONTH THROUGH AN AUTOMATIC INVESTMENT PLAN AND MANY FUNDS DEMAND LOWER MINIMUMS FOR INDIVIDUAL RETIREMENT ACCOUNTS YOUNGER INVESTORS WHO ARE SAVING FOR RETIREMENT SHOULD STASH MOST OF THEIR MONEY IN STOCKS SAY INVESTMENT ADVISERS LEWIS J ALTFEST PRESIDENT OF LJ ALTFEST & CO SUGGESTS KEEPING 80 OF ONE'S PORTFOLIO IN STOCKS INCLUDING A HEFTY STAKE IN SMALLCOMPANY STOCKS AND FOREIGN STOCKS I WOULD EXPECT THE SMALLCAPS TO OUTPERFORM SAYS MR ALTFEST THAT'S TRUE FOR INTERNATIONAL AS WELL BOTH THOSE ARE HIGHERRISK SITUATIONS BUT THAT RISK IS MODERATED BY THE FACT THAT THERE'S A LONG TIME UNTIL THE MONEY IS NEEDED MR ALTFEST ALSO RECOMMENDS STOCKS WHEN SAVING FOR A CHILD'S COLLEGE EDUCATION BUT WHILE STOCKS MAY BE A FINE INVESTMENT WHEN SAVING FOR RETIREMENT OR A CHILD'S EDUCATION YOUNGER INVESTORS MAY WANT TO BE MORE CONSERVATIVE WHEN IT COMES TO INVESTING THEIR EMERGENCY MONEY OR SAVING FOR THE DOWN PAYMENT ON A HOUSE BEFORE YOU START INVESTING IN STOCK MUTUAL FUNDS YOU SHOULD GET A RESERVE BUILT UP SAYS ROBERT BINGHAM AN INVESTMENT ADVISER WITH SAN FRANCISCO'S BINGHAM OSBORN & SCARBOROUGH HE SAYS HE BELIEVES INVESTORS SHOULD HAVE AN EMERGENCY FUND EQUAL TO BETWEEN THREE AND SIX MONTHS' LIVING EXPENSES IN CASE YOU LOSE YOUR JOB YOU BREAK YOUR LEG YOU HAVE A BIG REPAIR ON YOUR AUTOMOBILE WHEN SAVING TO BUY A HOUSE INVESTORS SHOULD ALSO FAVOR CONSERVATIVE INVESTMENTS HE SAYS IF YOU THINK YOU'RE GOING TO SAVE THE MONEY OVER A TWO OR THREEYEAR PERIOD YOU SHOULD PROBABLY USE A SHORTTERM BOND FUND MR BINGHAM SAYS AND IF YOU THINK YOU'RE GOING TO BE SAVING FOR FIVE YEARS YOU COULD USE A BALANCED FUND WHICH INCLUDES A MIX OF STOCKS AND BONDS MIDDLEAGED INVESTORS OFTEN HAVE AWESOME RESPONSIBILITIES THESE ARE PEOPLE IN THE TRIPLE BIND SAYS JOHN CAMMACK A VICE PRESIDENT WITH T ROWE PRICE ASSOCIATES THEY HAVE TO PREPARE FOR THEIR OWN RETIREMENT THEY'RE PROBABLY KNOCKING OFF A COUPLE OF COLLEGE EDUCATIONS AND THEY'VE GOT AGING PARENTS TO LOOK AFTER MR CAMMACK SAYS THOSE IN THEIR 40S AND 50S SHOULD CAREFULLY CONSIDER HOW MUCH MONEY THEY CAN AFFORD TO SPEND ON EACH OF THESE ITEMS AND HE THINKS INVESTORS SHOULDN'T SHORTCHANGE THEMSELVES BY SKIMPING ON THEIR RETIREMENT SAVINGS YOU HAVE TO BE VERY PRACTICAL IN ASSESSING WHAT YOUR FINANCIAL CAPABILITIES ARE MR CAMMACK SAYS DON'T PUT YOURSELF LAST BECAUSE YOU MAY NOT HAVE TIME TO CATCH UP INVESTMENT ADVISERS NOTE THAT INVESTORS SOMETIMES UNDERESTIMATE HOW MUCH MONEY THEY REALLY NEED TO RETIRE THERE'S A TENDENCY TO THINK THAT IF YOU'RE MAXING OUT YOUR 401K PLAN YOU'RE DOING OK SAYS ROBERT BINGHAM AN INVESTMENT ADVISER WITH BINGHAM OSBORN & SCARBOROUGH IN SAN FRANCISCO THESE DAYS IT'S REALLY NECESSARY TO ACCUMULATE SIZABLE ASSETS OUTSIDE OF YOUR COMPANY RETIREMENT PLAN MR BINGHAM NOTES THAT RETIREES WHO INVEST WISELY CAN GENERATE ROUGHLY 5000 IN ANNUAL PRETAX INCOME FOR EVERY 100000 THEY HAVE INVESTED AS A RESULT ONCE SOCIAL SECURITY IS TAKEN INTO ACCOUNT MANY RETIREES WILL FIND THEY NEED TO HAVE AT LEAST 500000 SAVED UP BEFORE THEY CAN QUIT THE WORK FORCE THE AMOUNT OF ASSETS NEEDED IS DIRECTLY RELATED TO THE LIFESTYLE OF THE RETIREE SAYS MR BINGHAM TO ACCUMULATE RETIREMENT SAVINGS INVESTMENT ADVISERS OFTEN SUGGEST THAT INVESTORS FIRST TRY TO MAKE THE MAXIMUM POSSIBLE CONTRIBUTION TO THEIR 401K PLAN AND THEIR INDIVIDUAL RETIREMENT ACCOUNT AFTER THAT THEY SHOULD CONSIDER PUTTING MONEY IN A NOLOAD LOWCOST TAXDEFERRED VARIABLE ANNUITY SUCH AS THOSE OFFERED BY SCUDDER STEVENS & CLARK AND VANGUARD GROUP THE PROBLEM WITH A VARIABLE ANNUITY IS THAT THE FEES ARE TOUGH UNLESS YOU STICK WITH IT FOR 10 YEARS OR SO SAYS KENNETH KLEGON A FEEONLY FINANCIAL PLANNER IN LANSING MICH FOR THOSE WHO ARE STRUGGLING TO SAVE ENOUGH MONEY FOR RETIREMENT CONSIDER STAYING IN THE WORK FORCE LONGER SAYS T ROWE PRICE'S MR CAMMACK THERE'S TREMENDOUS LEVERAGE FROM DELAYING YOUR RETIREMENT HE SAYS IF YOU DELAY YOUR RETIREMENT FROM 62 TO 65 IT CAN CHANGE THE AMOUNT OF CAPITAL YOU NEED DRAMATICALLY INVESTORS IN THEIR 40S AND 50S SHOULD CONSIDER PUTTING 65 OF THEIR PORTFOLIO IN STOCKS AND 35 IN BONDS SAYS LEWIS J ALTFEST PRESIDENT OF LJ ALTFEST & CO THE 65 IS FOR GROWTH AND THE 35 IS FOR INCOME AND SAFETY HE SAYS IF YOU ARE IN ONE OF THE TOP INCOME TAX BRACKETS YOU MAY WANT TO USE MUNICIPAL BONDS FOR THE FIXEDINCOME PART OF YOUR PORTFOLIO MUNICIPAL BONDS KICK OFF INCOME THAT IS EXEMPT FROM FEDERAL TAXES AND IN SOME CASES FROM STATE AND LOCAL TAXES AS WELL SMALLER INVESTORS OR THOSE PLANNING TO INVEST FOR A RELATIVELY SHORT TIME SHOULD PROBABLY STICK WITH MUNICIPAL BOND FUNDS BECAUSE OF THE HIGH COST OF TRADING IN THE MUNI MARKET BUT IF YOU'RE MAKING A LONGTERM INVESTMENT YOU MAY WANT TO BUY AN INDIVIDUAL BOND AND HOLD IT TO MATURITY THEREBY SAVING ON MUTUAL FUND EXPENSES INCOMEHUNGRY RETIREES FACE SOME GRIM CHOICES THESE DAYS SLUMPING INTEREST RATES HAVE SHOVED MONEY MARKET FUND YIELDS BELOW 3 AND PUSHED 30YEAR TREASURY BONDS CLOSE TO 7 YIELDSTARVED INVESTORS CAN'T EVEN FIND COMFORT IN HIGHYIELD JUNKBOND FUNDS WHICH THESE DAYS PAY LESS THAN 9 PEOPLE WHO ARE IN THEIR 70S AND 80S REMEMBER SO MANY YEARS OF HIGH INTEREST RATES SAYS JOHN BLANKINSHIP JR OF BLANKINSHIP & FOSTER A DEL MAR CALIF INVESTMENT ADVISER WHERE BEFORE THEY COULD LIVE OFF THEIR PORTFOLIO'S CURRENT YIELD NOW THEY CAN'T THE SOLUTION SAYS MR BLANKINSHIP IS TO MANAGE YOUR PORTFOLIO FOR TOTAL RETURN A PORTFOLIO'S TOTAL RETURN IS CALCULATED BY CONSIDERING NOT ONLY THE INCOME KICKED OFF BY THE PORTFOLIO BUT ALSO ANY CHANGE IN THE VALUE OF THE PORTFOLIO'S INVESTMENTS FINANCIAL ADVISERS SAY THE TRICK IS TO SPUR THE GROWTH IN YOUR PORTFOLIO'S VALUE BY KEEPING A HEALTHY CHUNK OF YOUR ASSETS IN STOCKS YOU'VE GOT TO KEEP STOCKS IN YOUR PORTFOLIO SAYS ROBERT BINGHAM AN INVESTMENT ADVISER WITH BINGHAM OSBORN & SCARBOROUGH SAN FRANCISCO NOW IT'S NOT UNUSUAL TO LIVE UNTIL YOU'RE 80 OR 85 IF YOU RETIRE AT AGE 60 AND YOU LIVE UNTIL YOU'RE 85 YOU HAVE A 25YEAR HOLDING PERIOD THAT'S PLENTY OF TIME TO EARN HANDSOME GAINS IN THE STOCK MARKET MR BINGHAM SAYS LEWIS J ALTFEST PRESIDENT OF LJ ALTFEST & CO SUGGESTS RETIREES KEEP 40 OF THEIR PORTFOLIO IN STOCKS AND 60 IN BONDS AND MONEY MARKET INSTRUMENTS IF YOU DO THAT HE SAYS YOU CAN SPEND ALL THE INCOME KICKED OFF BY YOUR BONDS AND MONEY MARKET INSTRUMENTS WITHOUT WORRYING THAT INFLATION WILL EAT AWAY AT YOUR STANDARD OF LIVING HOW COME WHILE THE BONDS ARE UNLIKELY TO GENERATE ANY CAPITAL GAINS THE 40 STOCK POSITION SHOULD PROVIDE ENOUGH GROWTH FOR THE PORTFOLIO'S VALUE TO STAY EVEN WITH INFLATION SAYS MR ALTFEST THIS PRESUMES YOU REINVEST THE INCOME AND CAPITAL GAINS YOU EARN ON YOUR STOCK INVESTMENTS EVERY YEAR OR EVERY TWO YEARS YOU SHOULD LOOK AT YOUR STOCKBOND MIX AND PARE BACK THE STOCK POSITION TO 40 SAYS MR ALTFEST THAT CAN BE DONE BY SELLING THE STOCK SIDE AND USING IT FOR INCOME OR USING THAT MONEY TO BUY BONDS BECAUSE RETIREES WILL HAVE TO PERIODICALLY SELL PORTIONS OF THEIR STOCK PORTFOLIO THEY NEED TO ENSURE THAT THEIR STOCK INVESTMENTS DON'T BOUNCE AROUND IN VALUE TOO MUCH AS A RESULT OWNING A BROAD MIX OF STOCKS IS CRUCIAL SAY INVESTMENT ADVISERS IT'S IMPORTANT TO MAINTAIN DIVERSIFICATION SO THAT SOMETHING'S GOING UP WHEN OTHER THINGS ARE GOING DOWN SAYS MR BINGHAM FOR RETIREES HOLDING DOWN INVESTMENT COSTS IS ALSO CRITICAL ESPECIALLY WHEN IT COMES TO PICKING BOND INVESTMENTS WITH BOND MUTUAL FUNDS FOR INSTANCE HIGH ANNUAL EXPENSES EAT DIRECTLY INTO A FUND'S YIELD THEREBY REDUCING THE AMOUNT OF MONEY AVAILABLE FOR A RETIREE TO SPEND THE HIGHER THE FIXEDINCOME POSITION IN YOUR PORTFOLIO THE GREATER THE FOCUS YOU SHOULD HAVE ON COSTS OF ALL KIND SAYS MR BINGHAM AVOID BUYING BONDS OR BOND FUNDS SIMPLY BECAUSE THEY BOAST A HIGH YIELD THERE ARE CERTAIN BOND FUNDS THAT ARE MANAGED FOR YIELD WHERE YOU GET HIGH DIVIDENDS BUT A DECLINING PRINCIPAL SAYS MR BINGHAM IN THE CURRENT ENVIRONMENT SHOPPING FOR HIGH YIELDS IS ESPECIALLY DANGEROUS BECAUSE YOU'RE GOING TO END UP IN LONGTERM BONDS OR IN POOR INVESTMENT CREDITS SEE RELATED STORY THREE STEPS TO BECOMING A SUCCESSFUL INVESTOR WSJ JUNE 11 1993 9306110045 930611 BUSINESS BRIEF HEXCEL CORP COMPANY REDUCES PAYROLL BY 135 5 OF WORK FORCE HEXCEL CORP SAID IT CUT ITS PAYROLL BY 135 PEOPLE ABOUT 5 OF ITS TOTAL WORK FORCE TO REDUCE COSTS HEXCEL A PLEASANTON CALIF MAKER OF ADVANCED COMPOSITES AND OTHER SPECIALIZED MATERIALS HAS BEEN HURT BY THE PROBLEMS IN THE AEROSPACE INDUSTRY IN THE FIRST QUARTER ENDED MARCH 31 IT HAD AN OPERATING LOSS OF 33 MILLION OR 45 CENTS A SHARE A 45 MILLION GAIN FROM AN ACCOUNTING CHANGE BOOSTED NET INCOME TO 12 MILLION OR 16 CENTS A SHARE ON SALES OF 898 MILLION HEXCEL ALSO SAID IT IS PURSUING NEW POTENTIAL MARKETS OUTSIDE THE AEROSPACE BUSINESS AND IS PARTICULARLY INTERESTED IN THE RECREATIONAL MARKET IN THE UNITED STATES AND THE RAIL MARKET IN EUROPE IT DIDN'T ELABORATE IN COMPOSITE NEW YORK STOCK EXCHANGE TRADING YESTERDAY HEXCEL CLOSED AT 9625 UP 125 CENTS 9306110044 930611 CHASE SELLS NEARLY 650 MILLION OF STOCK BUT 100 MILLION LESS THAN EXPECTED BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AMID A SKITTISH ENVIRONMENT FOR BANK STOCKS CHASE MANHATTAN CORP SOLD NEARLY 650 MILLION IN COMMON STOCK 100 MILLION LESS THAN THE COMPANY INITIALLY EXPECTED THE EQUITY WILL RAISE THE COMPANY'S CREDIT RATING AND STRENGTHEN ITS CAPITAL POSITION PROVIDING A WAR CHEST FOR ACQUISITIONS THROUGH GOLDMAN SACHS & CO CHASE SOLD 22 MILLION SHARES AT 2950 EACH YESTERDAY'S CLOSING PRICE ON THE NEW YORK STOCK EXCHANGE THE STOCK GAINED 25 CENTS YESTERDAY THE 649 MILLION RAISED MAKES IT THE FOURTHLARGEST COMMON STOCK OFFERING EVER BY A COMMERCIAL BANK ACCORDING TO SECURITIES DATA CO SINCE THE ANNOUNCEMENT OF THE PLANNED OFFERING IN APRIL SHARES OF THE US'S SIXTHLARGEST BANK HAVE TUMBLED NEARLY 20 HELPING TO SEND BANK SHARES CAREENING IN THE PAST SIX WEEKS WALL STREET WAS DISAPPOINTED BY CHASE'S MOVE BECAUSE SOME ANALYSTS BELIEVED THE COMPANY DID NOT NEED THE CAPITAL AND THE EXTRA SHARES WOULD DILUTE PERSHARE EARNINGS FOR EXISTING HOLDERS THE NEW EQUITY IS NICE TO HAVE BUT IT'S NOT AN ABSOLUTE NECESSITY SAID RAPHAEL SOIFER BANKING ANALYST AT BROWN BROTHERS HARRIMAN & CO STILL AS BANK OF BOSTON CORP FOUND OUT RECENTLY REGULATORS DEMAND A STRONG CAPITAL BASE TO ENGAGE IN ACQUISITIONS AND CHASE CLEARLY WANTS TO PLAY IN THE ACQUISITION GAME BANK OF BOSTON SQUEAKED BY REGULATORS THIS WEEK IN WINNING APPROVAL FOR TWO BANK PURCHASES ONLY AFTER AGREEING TO RAISE 170 MILLION IN NEW CAPITAL CHASE WILL USE THE FUNDS TO PROVIDE FUNDING TO SUPPORT ITS GROWTH AND ACQUISITION STRATEGIES FOR ITS CORE BUSINESSES THE COMPANY SAID IN ITS STOCK PROSPECTUS CHASE IS INTERESTED IN THE NEW JERSEY AND CONNECTICUT MARKETS AND OFFICIALS HAVE SAID IT WOULD GROW ITS MORTGAGE AND CREDIT CARD PORTFOLIOS THE EQUITY WILL ALSO HELP PAY FOR THE WRITEDOWN AND SALE OF 2 BILLION IN PROBLEM COMMERCIAL REAL ESTATE ASSETS LAST NIGHT CHASE DECLINED TO COMMENT CITING SECURITIES AND EXCHANGE COMMISSION RESTRICTIONS INITIALLY THE COMPANY FILED TO SELL 22 MILLION SHARES VALUED AT 750 MILLION BUT THE COMPANY IS NOW WILLING TO ACCEPT THE 649 MILLION RATHER THAN SELL ADDITIONAL SHARES UNDERWRITERS HAVE AN OPTION TO SELL AN ADDITIONAL THREE MILLION SHARES WHICH WOULD RAISE AN ADDITIONAL 885 MILLION INVESTORS WERE ATTRACTED TO ITS SHARES IN PART BECAUSE THEY WERE DOWNRIGHT CHEAP ANALYSTS SAY THE STOCK'S DIVIDEND YIELD IS A LOFTY 41 AND IT TRADES AT 84 TIMES 1994 EARNINGS ESTIMATES OF MR SOIFER THAT COMPARES WITH A BIT OVER 17 TIMES EARNINGS FOR THE STANDARD & POOR'S 500STOCK INDEX BECAUSE THE OFFERING WILL RAISE CHASE'S EQUITY CAPITAL RATIO STANDARD & POOR'S CORP IS EXPECTED TO UPGRADE THE COMPANY'S CREDIT RATING WHEN CHASE FILED FOR THE STOCK OFFERING THE RATINGS CONCERN SAID IT WOULD RAISE THE COMPANY'S DEBT RATING TO SINGLEA FROM TRIPLEB S&P WHICH DIDN'T RETURN A PHONE CALL IS STILL EXPECTED TO RAISE THE RATING DESPITE THE LESSTHANEXPECTED OFFERING RATHER THAN RAISE ITS TIER ONE CAPITAL RATIO TO 79 PERCENTAGE POINTS FROM 71 PERCENTAGE POINTS THE SALE WILL BOOST THE RATIO TO 78 ANALYSTS SAY AN UPGRADE SHOULD HELP THE COMPANY'S GROWING FINANCIAL DERIVATIVES UNIT INVESTORS AND CORPORATIONS TEND TO TRANSACT THESE SOPHISTICATED FINANCIAL INSTRUMENTS SUCH AS INTEREST RATE AND CURRENCY SWAPS WITH FINANCIAL INSTITUTIONS THAT HAVE TOP CREDIT RATINGS 9306110043 930611 TECHNOLOGY BRIEF ECHELON CORP FIRM'S TECHNOLOGY IS CHOSEN FOR USE BY AT&T SUBSIDIARY ECHELON CORP SAID AT&T NETWORK SYSTEMS WILL USE ECHELON'S TECHNOLOGY TO ESTABLISH AN ADVANCED SYSTEM FOR MONITORING TELECOMMUNICATIONS LINES FOR POTENTIAL SERVICE PROBLEMS ECHELON IS A PRIVATELY HELD PALO ALTO CALIF CONCERN RUN BY TWO HIGHTECH LUMINARIES MIKE MARKKULA A COFOUNDER OF APPLE COMPUTER INC AND KEN OSHMAN FOUNDER OF ROLM CORP ECHELON IS CLOSELY WATCHED IN COMPUTER CIRCLES BECAUSE OF THE TWO MEN'S STATURE IN THE INDUSTRY AND BECAUSE OF ECHELON'S SOMEWHAT SECRETIVE EFFORTS TO DEVELOP AVANTGARDE TECHNOLOGIES FOR CONTROLLING COMPUTER NETWORKS THE COMPANIES PLAN TO ANNOUNCE THE TRANSACTION MONDAY NEITHER COMPANY INDICATED HOW MUCH IT WOULD BE WORTH AT&T NETWORK A UNIT OF AMERICAN TELEPHONE & TELEGRAPH CO WILL USE THE ECHELON TECHNOLOGY IN WHAT AMOUNTS TO A COMPLEX ALARM SYSTEM THAT CONSTANTLY MONITORS TELECOMMUNICATIONS LINES AUTOMATICALLY CORRECTS MANY PROBLEMS AND INSTANTLY SIGNALS WHEN SOMETHING GOES WRONG AT&T NETWORK SAID THE NEW SYSTEM IS A SIGNIFICANT ADVANCE OVER CURRENT TECHNOLOGY FOR MONITORING TELECOMMUNICATIONS SYSTEMS 9306110042 930611 TECHNOLOGY BRIEF STORAGE TECHNOLOGY CORP PATENT INFRINGEMENT SUIT IS FILED AGAINST EMC CORP STORAGE TECHNOLOGY CORP LOUISVILLE COLO SAID IT FILED A PATENT INFRINGEMENT LAWSUIT AGAINST EMC CORP A HOPKINTON MASS DATASTORAGE COMPETITOR THE SUIT FILED IN US DISTRICT COURT IN DENVER ACCUSES EMC OF VIOLATING THREE 1985 STORAGETEK PATENTS THAT GOVERN THE WAY INFORMATION FLOWS FROM A COMPUTER'S STORAGE DISK TO ITS CACHE MEMORY SYSTEM BOTH COMPANIES MAKE STORAGE AND INFORMATION SYSTEMS FOR ADVANCED COMPUTERS A SPOKESWOMAN FOR EMC SAID THE COMPANY HADN'T SEEN THE LAWSUIT AND DECLINED FURTHER COMMENT STORAGETEK SAID THE SUIT COMES AMID AN INTENSIFIED PATENT PROTECTION PROGRAM AT THE COMPANY WHICH FILED 62 PATENT APPLICATIONS LAST YEAR AND SPENT 148 MILLION OR 97 OF ITS 1992 REVENUE ON RESEARCH AND DEVELOPMENT 9306110041 930611 BUSINESS BRIEF SEQUA CORP JETENGINE REPAIRS RESUME AFTER 2MONTH SUSPENSION SEQUA CORP NEW YORK SAID THE FEDERAL AVIATION ADMINISTRATION AUTHORIZED ITS JETENGINE COMPONENT REPAIR UNIT TO RESUME OPERATIONS AFTER A TWOMONTH SUSPENSION SEQUA'S CHROMALLOY RESEARCH & TECHNOLOGY UNIT SURRENDERED ITS FAA REPAIR CERTIFICATE ON APRIL 8 AS PART OF AN FAA INQUIRY INTO ITS BUSINESS PRACTICES CHROMALLOY RESEARCH & TECHNOLOGY SAID IT REVISED ITS REPAIR PROCESSES AND PROCEDURES IN COOPERATION WITH THE FAA INQUIRY A SPOKESWOMAN FOR THE COMPANY SAID THE RESTORATION OF THE REPAIR CERTIFICATE WAS A FIRST STEP IN BRINGING THE ORANGEBURG NY FACILITY UP TO ITS PREVIOUS LEVEL OF BUSINESS WE'RE NOW IN A POSITION TO REBUILD OUR CUSTOMER BASE THE SPOKESWOMAN SAID THOUGH WE DON'T BELIEVE WE'VE LOST THAT MUCH BUSINESS AS PART OF THE FAA PROBE CHROMALLOY RESEARCH MADE A 5 MILLION REMEDIAL PAYMENT TO THE ADMINISTRATION IN APRIL INVESTIGATIONS BY THE DEPARTMENT OF TRANSPORTATION AND FEDERAL BUREAU OF INVESTIGATION IN RELATION TO THE UNIT'S BUSINESS OPERATIONS ARE PENDING 9306110040 930611 CANANDAIGUA TO CLOSE TWO PLANTS CANANDAIGUA NY CANANDAIGUA WINE CO SAID IT WILL CLOSE ITS TENNER BROTHERS INC FACILITY IN PATRICK SC AND ITS CALIFORNIA PRODUCTS CO FACILITY IN FRESNO CALIF THE WINE PRODUCER SAID PRODUCTION WOULD BE INTEGRATED INTO ITS OTHER FACILITIES 9306110038 930611 FINANCING BUSINESS ADVANCE CIRCUITS INC ADVANCE CIRCUITS INC MINNETONKA MINN SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION COVERING A PROPOSED 1380000SHARE PUBLIC OFFERING OF COMMON STOCK THE MAKER OF PRINTED CIRCUIT BOARDS SAID IT WILL USE PROCEEDS FROM THE OFFERING TO PURCHASE EQUIPMENT AND EXPAND EXISTING FACILITIES TO PROVIDE WORKING CAPITAL AND TO FUND POSSIBLE FUTURE ACQUISITIONS IN RELATED BUSINESS AREAS 9306110037 930611 MNC HOLDERS APPROVE PURCHASE BALTIMORE MNC FINANCIAL INC'S SHAREHOLDERS APPROVED THE BANK COMPANY'S ACQUISITION BY NATIONSBANK CORP IN A STOCK SWAP VALUED AT 136 BILLION THE TRANSACTION CURRENTLY UNDER REVIEW BY REGULATORY AUTHORITIES IS EXPECTED TO BE COMPLETED LATER THIS YEAR NATIONSBANK BASED IN CHARLOTTE NC IS THE NATION'S FIFTHLARGEST BANK COMPANY WITH ABOUT 120 BILLION OF ASSETS AND MORE THAN 1800 BANKING OFFICES IN NINE STATES MNC HAS 16 BILLION IN ASSETS AND OPERATES NEARLY 250 OFFICES IN MARYLAND VIRGINIA AND THE DISTRICT OF COLUMBIA 9306110035 930611 BUSINESS BRIEF AMERICAN TELEPHONE & TELEGRAPH HOSPITALITY FRANCHISE GRANTS CONTRACT FOR 400 MILLION AMERICAN TELEPHONE & TELEGRAPH CO NEW YORK SAID IT RECEIVED A 400 MILLION CONTRACT FROM HOSPITALITY FRANCHISE SYSTEMS INC FOR TOLLFREE RESERVATION SERVICES INCLUDING SERVICES OFFERED BY RIVALS AT&T IN ADDITION TO CONTINUING THE 800 RESERVATION SERVICE FOR HOWARD JOHNSON AND RAMADA HOTELS UNDER FRANCHISE FROM HOSPITALITY FRANCHISE WILL NOW SERVICE THE 18008008000 NUMBER FOR FRANCHISED SUPER 8 MOTELS PREVIOUSLY SERVICED BY SPRINT CORP AND THE 1800DAYSINN NUMBER FOR DAYS INNS PREVIOUSLY SERVICED BY LDDS COMMUNICATIONS INC A SPOKESWOMAN FOR HFS IN PARSIPPANY NJ DIDN'T KNOW HOW MUCH OF THE 400 MILLION CONTRACT WAS ATTRIBUTABLE TO THE BUSINESS PICKED UP FROM RIVALS AT&T ALSO PROVIDES ITS SOFTWARE DEFINED NETWORK TO HFS CORPORATE OFFICES AND PARTICIPATING FRANCHISED HOTELS AND MOTELS UNDER THE CONTRACT THE COMPANIES SAID 9306110034 930611 BUSINESS BRIEF TYSON FOODS INC COMPANY IS FOUND GUILTY OF ILLEGAL LABOR PRACTICES TYSON FOODS INC SAID THE NATIONAL LABOR RELATIONS BOARD FOUND THE COMPANY GUILTY OF ILLEGAL LABOR PRACTICES INCLUDING TRYING TO OUST THE WORKERS' UNION AT AN ARKANSAS POULTRY PLANT THE RULING ANNOUNCED BY THE UNITED FOOD AND COMMERCIAL WORKERS UNION SAID TYSON ILLEGALLY DIRECTED AND CONTROLLED A DECERTIFICATION PETITION TO OUST THE UNION AT A DARDANELLE ARK PLANT THE UNION SAID THE BOARD RULED THAT THE COMPANY THREATENED EMPLOYEES INTERROGATED WORKERS AND PUT LEGAL UNION ACTIVITIES UNDER SURVEILLANCE AMONG OTHER THINGS THE SPRINGDALE ARK FOOD COMPANY DENIED THE ALLEGATIONS AND SAID IT HASN'T DECIDED WHETHER TO APPEAL THE MAY 28 RULING TO A FEDERAL DISTRICT COURT BILL JAYCOX GROUP VICE PRESIDENT FOR HUMAN RESOURCES DENIED THAT THE COMPANY INITIATED THE DECERTIFICATION PETITION WHICH HE SAID WAS SIGNED BY 90 OF THE 1100 BARGAINING EMPLOYEES AT THE PLANT 9306110033 930611 BUSINESS BRIEF SPROUSEREITZ STORES INC FISCAL FIRSTQUARTER NET LOSS OF 38 MILLION IS REPORTED SPROUSEREITZ STORES INC REPORTED A NET LOSS OF 38 MILLION OR 264 A SHARE FOR ITS FISCAL FIRST QUARTER ENDED APRIL 27 THE PORTLAND ORE RETAILER HAD PROJECTED IN MAY THAT FIRSTQUARTER EARNINGS WOULD BE HURT BY DISCOUNTING TO SPUR SALES IN A SOFT MARKET IN THE YEAREARLIER QUARTER SPROUSEREITZ HAD A NET LOSS OF 15 MILLION OR 106 A SHARE SALES FOR THE LATEST QUARTER ROSE ALMOST 6 TO 363 MILLION FROM 343 MILLION SPROUSEREITZ ALSO SAID IT IS NEGOTIATING WITH AN UNSPECIFIED PROSPECTIVE LENDER FOR FRESH CREDIT FACILITIES TO BOLSTER WORKING CAPITAL IN NATIONAL OVERTHECOUNTER TRADING SPROUSEREITZ CLOSED UNCHANGED AT 3 9306110032 930611 BUSINESS BRIEF CONTINUUM CO OFFER IS MADE TO BUY PAXUS IN 80 MILLION STOCK SWAP CONTINUUM CO SAID IT OFFERED TO ACQUIRE PAXUS CORP OF SYDNEY AUSTRALIA IN AN EXCHANGE OF STOCK THE CONSULTING AND COMPUTER SERVICES COMPANY IN AUSTIN TEXAS SAID IT OFFERED TO EXCHANGE 00559 OF A SHARE OF ITS COMMON STOCK FOR EACH OF PAXUS'S APPROXIMATELY 69 MILLION SHARES OUTSTANDING GIVING THE TRANSACTION AN ESTIMATED VALUE OF 80 MILLION THE COMPANY SAID THE ACQUISITION IS CONDITIONED UPON A MINIMUM OF 90 OF PAXUS SHARES BEING TENDERED AND APPROVAL BY CONTINUUM STOCKHOLDERS AT A JULY 13 SPECIAL MEETING PAXUS ALSO A CONSULTING AND COMPUTER SERVICES FIRM SUPPLIES COMPUTER SOFTWARE AND SERVICES TO INSURANCE AND FINANCIAL SERVICES FIRMS THROUGHOUT EUROPE AND THE PACIFIC RIM THE COMPANY REPORTED REVENUE OF ABOUT 88 MILLION FOR THE NINE MONTHS ENDED DEC 31 AND HAS ABOUT 1000 FULLTIME EMPLOYEES 9306110031 930611 DUPONT QUESTIONED ON DATA SHOWING FUNGICIDE'S EFFECT BY THOMAS M BURTON STAFF REPORTER OF THE WALL STREET JOURNAL THE FLORIDA AGRICULTURE COMMISSIONER SAID HE HAS CONCLUDED FROM DUPONT CO DOCUMENTS THAT THE COMPANY KNEW ITS BENLATE DF FUNGICIDE DAMAGED CROPS BUT FAILED TO TAKE ACTION I AM DEEPLY DISTURBED THAT YOUR COMPANY DID NOT MAKE THIS INFORMATION AVAILABLE TO STATE AND FEDERAL REGULATORS AS SOON AS YOU LEARNED OF IT WROTE COMMISSIONER BOB CRAWFORD IN A LETTER TO DUPONT OFFICIALS HIS LETTER WAS BASED ON A REVIEW OF DOCUMENTS RELATED TO THE FUNGICIDE WHICH IS ALLEGED IN NUMEROUS LAWSUITS AROUND THE US TO HAVE KILLED VALUABLE CROPS AND NURSERYGROWN FLOWERS MR CRAWFORD CONTENDED IN HIS LETTER MADE PUBLIC YESTERDAY BY DUPONT THAT DUPONT CONTINUES TO WITHHOLD RELEVANT DATA AND THAT IT FAILED TO LIVE UP TO ITS FINANCIAL RESPONSIBILITIES TO FLORIDA GROWERS IN A LETTER ALSO RELEASED YESTERDAY DUPONT'S VICE PRESIDENT AND GENERAL MANAGER OF AGRICULTURAL PRODUCTS WILLIAM F KIRK DISPUTED MR CRAWFORD'S CONCLUSIONS HE WROTE THAT BENLATE WHEN APPLIED AT RATES SUGGESTED BY THE COMPANY'S LABELS DOES NOT DAMAGE CROPS HE DESCRIBED THE FLORIDA AGRICULTURE DEPARTMENT FINDINGS AS ILLUSORY AT BEST AND CONTRIVED AT WORST FLORIDA OFFICIALS YESTERDAY SUBPOENAED TOP OFFICERS OF DUPONT INCLUDING CHAIRMAN EDGAR S WOOLARD JR TO GIVE DEPOSITION TESTIMONY IN ITS LAWSUIT SEEKING THE UNSEALING OF COURT DOCUMENTS THE FLORIDA AGRICULTURE DEPARTMENT HAS SUED DUPONT TO OBTAIN THE RELEASE OF THOUSANDS OF OTHER DOCUMENTS THAT THE STATE CONTENDS WOULD FURTHER BUTTRESS ITS CONTENTION THAT BENLATE DF DAMAGED CROPS THOUSANDS OF DUPONT INTERNAL DOCUMENTS WERE PRODUCED DURING FACTFINDING IN OTHER CASES THEN SEALED BY COURT ORDER ACCORDING TO A SPOKESWOMAN FOR MR CRAWFORD HIS LETTER CLAIMED EXISTING DUPONT RECORDS SHOW BENLATE DF'S PHYTOTOXICITY OR TOXICITY TO PLANTS MY SCIENTIFIC STAFF HAVE REACHED THE CONCLUSION THAT THE DUPONT CORP HAS KNOWN FOR YEARS ABOUT CERTAIN PHYTOTOXIC EFFECTS OF BENLATE BENLATE DF IS A GRANULAR FORMULATION OF THE PRODUCT THAT IS NO LONGER SOLD BENLATE WP A POWDER STILL IS MARKETED 9306110030 930611 SOUTH AFRICA HOPES TO RESCHEDULE DEBT AS TOTAL DECLINES BY NEIL BEHRMANN SPECIAL TO THE WALL STREET JOURNAL SOUTH AFRICA'S FOREIGN DEBT IS DOWN TO 17 BILLION THIS YEAR FROM 238 BILLION IN 1985 SAID CHRISTIAN STALS GOVERNOR OF THE RESERVE BANK FURTHER REPAYMENTS SHOULD REDUCE THIS DEBT TO 165 BILLION BY THE END OF THE YEAR MR STALS SAID IN AN INTERVIEW BY THAT TIME SOUTH AFRICA AIMS TO RENEGOTIATE A REPAYMENT AGREEMENT WITH INTERNATIONAL BANK CREDITORS HE SAID SOUTH AFRICA BEGAN A SERIES OF STRINGENT AGREEMENTS TO REPAY ITS DEBT FOLLOWING A DEBT MORATORIUM IN MID1985 THAT YEAR SOUTH AFRICA FROZE REPAYMENTS ON FOREIGN DEBTS WHEN BANKS IN THE US AND SEVERAL OTHER COUNTRIES DEMANDED EARLY REPAYMENT ON THEIR LOANS THEY FEARED THE POLITICAL AND ECONOMIC CONSEQUENCES OF APARTHEID BANKERS SAID THEN SOME 300 INTERNATIONAL BANKS WERE OWED MONEY MR STALS SAID THAT NUMBER SHRANK TO 200 BUT SWISS GERMAN UK AND US BANKS ARE THE MAJOR CREDITORS HE SAID WE ARE IN A MUCH HEALTHIER FINANCIAL STATE NOW MR STALS SAID SOUTH AFRICAN FOREIGN DEBT ACCOUNTS FOR ONLY 155 OF GROSS DOMESTIC PRODUCT COMPARED WITH 43 IN 1985 HE SAID TOTAL FOREIGN BORROWINGS ARE EQUIVALENT TO 60 OF ANNUAL EXPORTS HE SAID WHILE INTEREST PAYMENTS ON THIS DEBT ARE ONLY 4 OF EXPORTS MR STALS SAID IN COMPARISON AVERAGE DEVELOPING NATION DEBT ACCOUNTS FOR 270 OF EXPORT EARNINGS AND INTEREST PAYMENTS 28 MR STALS WOULDN'T COMMENT ON NEGOTIATIONS WITH THE CREDITOR COMMITTEE OF 15 FOREIGN BANKS BUT RESERVE BANK OFFICIALS AIM AT RESCHEDULING DEBT REPAYMENTS ON A LESS ONEROUS BASIS SOME BANK CREDITORS SAY THEY INTEND TO CONSULT THE AFRICAN NATIONAL CONGRESS BEFORE A FINAL AGREEMENT IS REACHED YET THE ECONOMY IS JUST EMERGING FROM A DEEP RECESSION AND THE PROVISIONAL DATE FOR DEMOCRATIC ELECTIONS IS SET FOR APRIL NEXT YEAR SO A FLEDGING BLACK GOVERNMENT IN THE VOLATILE POSTAPARTHEID SOCIETY DOESN'T WANT TO BE SADDLED WITH TOUGH FOREIGN STRICTURES ANALYSTS SAY ANC PRESIDENT NELSON MANDELA FOR EXAMPLE RECENTLY VISITED THE UK AND GERMANY AND APPEALED FOR INVESTMENT BITTER POLITICAL VIOLENCE UNDERMINED LOCAL AND INTERNATIONAL CONFIDENCE TO SUCH AN EXTENT THAT SOUTH AFRICAN CAPITAL OUTFLOWS INCLUDING FOREIGN DEBT REPAYMENTS AMOUNTED TO 489 BILLION FROM THE BEGINNING OF 1991 TO THE END OF THE FIRST QUARTER OF THIS YEAR MR STALS SAID THE COMMERCIAL RAND THE NATION'S TRADING CURRENCY SLUMPED BY 20 TO 3135 US CENTS SINCE THE BEGINNING OF 1991 THE RESERVE BANK SAYS WHILE THE FINANCIAL RAND THE NATION'S INVESTMENT CURRENCY AND BAROMETER OF INTERNATIONAL CONFIDENCE SLUMPED 27 CAPITAL OUTFLOWS A SEVERE DROUGHT AND COMMODITY SLUMP CONTRIBUTED TOWARDS A 2 CONTRACTION IN THE ECONOMY LAST YEAR MR STALS SAID BUT SOUTH AFRICA IS THE WORLD'S LARGEST GOLD PRODUCER AND THE DROUGHT HAS ENDED HE SAID MOREOVER UNDERLYING INFLATION FELL TO 9 THIS YEAR COMPARED WITH 21 IN 1987 MR STALS SAID PROVIDED POLITICAL VIOLENCE SUBSIDES AND THE GOLD PRICE REMAINS FIRM FOREIGN EXCHANGE RESERVES SHOULD INCREASE AND HELP UNDERPIN THE RAND HE SAID 9306110029 930611 PRIVATE DONATIONS TO HIGHER EDUCATION FALL SHORT OF COSTS NEW YORK GROWTH IN PRIVATE GIFTS TO US COLLEGES AND UNIVERSITIES BEAT INFLATION LAST YEAR BUT FAILED TO MATCH THE SCHOOLS' OWN RISING COSTS GIFTS ROSE 49 TO 107 BILLION IN THE 1992 ACADEMIC YEAR FROM 102 BILLION A YEAR EARLIER SAYS THE COUNCIL FOR AID TO EDUCATION A NEW YORKBASED NONPROFIT GROUP BUT AFTER ADJUSTING FOR INFLATION GIVING ROSE ONLY 16 WHILE EDUCATIONAL SPENDING ROSE 3 NEARLY ALL THE GAIN WAS LOGGED BY PUBLIC INSTITUTIONS THAT HAVE BEEN INCREASING THEIR FUND RAISING IN THE WAKE OF FEDERAL AND STATE BUDGET CUTS SAID DAVID MORGAN DIRECTOR OF RESEARCH WE SUSPECT IT'S THE FIRST TIME PUBLIC SCHOOLS SO CLEARLY OUTPACED PRIVATE ONES HE ADDED SUPPORT FOR SURVEYED PUBLIC COMPREHENSIVE UNIVERSITIES ROSE 77 WHILE GIFTS TO COMPARABLE PRIVATE SCHOOLS ROSE ONLY 23 SIMILARLY CONTRIBUTIONS TO SURVEYED PUBLIC RESEARCH AND DOCTORAL UNIVERSITIES CLIMBED 103 WHILE SUPPORT FOR COMPARABLE PRIVATE SCHOOLS ROSE JUST 21 CORPORATE GIVING ROSE JUST 13 TO 226 BILLION DUE TO THE CONTINUED IMPACT OF LACKLUSTER PROFITS AND RESTRUCTURINGS IN INFLATIONADJUSTED TERMS CORPORATE GIFTS DECLINED 18 THE COUNCIL NOTED THAT CORPORATE GIVING OVER THE PAST 20 YEARS HAS GROWN AT NEARLY THREE TIMES THE RATE OF GROWTH OF THE ECONOMY BUT GIFTS PLATEAUED IN 1988 AND HAVE BEEN FLAT SINCE MR MORGAN SAID HE WAS SURPRISED THAT FOUNDATION GIVING WASN'T UP MORE THAN IT WAS HE NOTED THAT FOUNDATIONS HAVE BEEN SHOWING A GREATER COMMITMENT TO PUBLIC KINDERGARTENTHROUGH12THGRADE SCHOOLS IN RECENT YEARS AND SUGGESTED THAT TREND MAY BE STARTING TO SHOW UP IN SURVEY NUMBERS 9306110028 930611 ECONOMY US GERMANY RESOLVE TELECOMMUNICATIONS ISSUE WASHINGTON US TRADE REPRESENTATIVE MICKEY KANTOR SAID THE US AND GERMANY HAD RESOLVED A DISPUTE OVER TELECOMMUNICATIONS PROCUREMENT ENDING THREATS OF TRADE SANCTIONS MR KANTOR SAID GERMANY HAD AGREED NOT TO APPLY CERTAIN BUYEUROPE PROCUREMENT RULES THAT HAD BEEN ADOPTED BY THE EUROPEAN COMMUNITY EARLIER THIS YEAR UNDER THOSE RULES EC UTILITIES COULD APPLY A 3 PRICE PREFERENCE TO EUROPEAN BIDS AND THE UTILITIES COULD ALSO REJECT NONEUROPEAN BIDS AFTER MONTHS OF NEGOTIATIONS THE US COULDN'T PERSUADE THE EC TO REMOVE THOSE RULES AS THEY PERTAINED TO TELECOMMUNICATIONS EQUIPMENT AS A RESULT THE US RECENTLY MOVED TO BLOCK EC COMPANIES FROM BIDDING ON A SMALL NUMBER OF US GOVERNMENT PROJECTS THE EC THEN IMPOSED ITS OWN NOMINAL SANCTIONS AGAINST US COMPANIES BOTH SIDES PLAYED DOWN THE SIGNIFICANCE OF THE SANCTIONS WHICH HAD A VALUE OF LESS THAN 20 MILLION SO THAT THE SANCTIONS WOULDN'T INTERFERE WITH EFFORTS TO CONCLUDE A WORLDTRADE DEAL MR KANTOR SAID THE US WOULDN'T IMPOSE SANCTIONS AGAINST GERMANY AND GERMANY WON'T RETALIATE AGAINST THE US 9306110027 930611 BUSINESS BRIEF REGULATORS SEEK TO RESCIND 1988 SALE OF BLUEBONNET SAVINGS ALLEGING FRAUD DALLAS FEDERAL REGULATORS ARE SEEKING TO RESCIND THE SALE OF BLUEBONNET SAVINGS BANK TO ARIZONA INSURANCE EXECUTIVE JAMES M FAIL 4 1/2 YEARS AFTER HE PURCHASED IT AS PART OF THE CONTROVERSIAL SOUTHWEST PLAN TO REHABILITATE FAILED THRIFTS IN A DALLAS FEDERAL COURT FILING THE FEDERAL DEPOSIT INSURANCE CORP CHARGED MR FAIL WITH FRAUD CLAIMING HE FAILED TO DISCLOSE THE 1976 FELONY CONVICTION OF HIS COMPANY UNITED SECURITY HOLDING CO IN CONNECTION WITH AN ALABAMA INSURANCE SCAM REGULATORS ALSO WANT MR FAIL TO RESIGN FROM BLUEBONNET'S BOARD SAYING HE WOULD HAVE BEEN DISQUALIFIED FROM THE DEAL HAD THEY KNOWN ABOUT THE CONVICTION THE SUIT CALLS FOR BOTH PARTIES TO BE RETURNED TO THE POSITION THEY WERE IN PRIOR TO THE 1988 TRANSACTION AND FEDERAL REGULATORS SAY THE GOVERNMENT WILL REFUND MR FAIL'S MONEY BUT BLUEBONNET SAVINGS WITH 33 BILLION IN ASSETS IS NOW ONE OF THE LARGEST AND HEALTHIEST THRIFTS IN TEXAS COMPANY OFFICIALS SAY THE BANK HAS LIQUIDATED 16 BILLION IN ASSETS AND EXPECTS TO REPORT FISCAL 1993 EARNINGS OF ABOUT 60 MILLION THE COMPANY SAID IN 1992 FEDERAL REGULATORS ALLOWED BLUEBONNET TO ACQUIRE 426 MILLION IN ASSETS FROM ANOTHER FAILED TEXAS THRIFT THEY WANT TO GIVE JIM FAIL HIS MONEY BACK AND TAKE AN INSTITUTION WHICH IS NOW SOLVENT AND ALREADY COMPLETED ITS SIDE OF THE BARGAIN SAID BRAD OATES BLUEBONNET'S PRESIDENT AND CHIEF OPERATING OFFICER WE COULD NOT GO BACK TO THE WAY IT WAS IN 1988 IT'S PHYSICALLY IMPOSSIBLE ATTORNEYS FOR THE FDIC DIDN'T RETURN PHONE CALLS SEEKING COMMENT IN 1991 BLUEBONNET SUED FEDERAL REGULATORS CLAIMING THEY BROKE A FORBEARANCE AGREEMENT ALLOWING IT TO OPERATE WITH LOWER CAPITAL REQUIREMENTS AND STRIPPED AWAY TAX ADVANTAGES IT HAD NEGOTIATED IN 1988 THE THRIFT ALSO ACCUSES THE GOVERNMENT OF REGULATORY HARASSMENT DESIGNED TO REMOVE MR FAIL FROM CONTROL A HEARING ON THE CASE IS EXPECTED IN SEPTEMBER MR OATES SAID A DALLAS FEDERAL JUDGE IN DECEMBER ISSUED A SUMMARY JUDGMENT REQUIRING THE FDIC TO MEET A MULTIMILLIONDOLLAR PAYMENT OBLIGATION THAT WAS PART OF THE 1988 ASSISTANCE AGREEMENT THAT FORMED BLUEBONNET 9306110026 930611 CMS UNIT FORMS TRUST DEARBORN MICH CMS ENERGY CORP'S PLANT DEVELOPMENT UNIT CMS GENERATION CO FORMED A 75 MILLION TRUST WITH TWO PARTNERS FOR INVESTING IN UTILITY PROJECTS IN LATIN AMERICA AND THE CARIBBEAN THE PARTNERS ARE INTERNATIONAL FINANCE CORP AN AFFILIATE OF THE WORLD BANK AND NRG ENERGY INC A SUBSIDIARY OF NORTHERN STATES POWER CO BASED IN MINNEAPOLIS CMS SAID EACH PARTNER IS INVESTING 25 MILLION INTO THE TRUST EXPECTING THE TRUST WILL GROW TO 500 MILLION THE TRUST WILL BE MANAGED BY SCUDDER STEVENS & CLARK INC OF NEW YORK 9306110025 930611 DASSAULT PLANS TO BUILD ITS PLANES IN TAIWAN UNDER JOINT VENTURE SPECIAL TO THE WALL STREET JOURNAL TAIPEI FRENCH AIRCRAFT MAKER DASSAULT AVIATION SA HAS AGREED TO MANUFACTURE ITS FALCON 900D COMMERCIAL PLANES IN TAIWAN UNDER A JOINT VENTURE A GOVERNMENT AGENCY SAID THE TAIWAN INDUSTRIAL DEVELOPMENT BUREAU SAID ITS DIRECTOR PHILIP WANG REPORTED FROM PARIS THAT SERGE DASSAULT CHAIRMAN OF THE FRENCH COMPANY ALSO WAS CONSIDERING THE TRANSFER OF TECHNOLOGY TO MAKE JET PLANE COMPONENTS UNDER THE JOINT VENTURE MR WANG PROVIDED NO ADDITIONAL DETAILS HIS TAIPEI OFFICE SAID THE TAIWAN PARTNER IS EXPECTED TO BE THE TAIWAN AEROSPACE CORP WHICH IS OWNED 29 BY THE NATIONALIST GOVERNMENT TAIWAN AGREED LAST YEAR TO PURCHASE 60 MIRAGE 20005 JET FIGHTERS FOR 6 BILLION FROM DASSAULT TO BE DELIVERED IN 1995 THE RIVAL CHINESE COMMUNIST GOVERNMENT IN BEIJING CONDEMNED THE SALE DESCRIBING IT AS INTERFERENCE IN CHINA'S INTERNAL AFFAIRS BEIJING WHICH CONSIDERS TAIWAN A RENEGADE PROVINCE RETALIATED BY REDUCING ITS TRADE WITH FRANCE AND ORDERING FRANCE TO CLOSE ITS CONSULATE IN GUANGZHOU IN SOUTHERN CHINA LAST YEAR TAIWAN SIGNED A 500 MILLION JOINT VENTURE AGREEMENT WITH BRITISH AEROSPACE PLC TO BUILD PASSENGER JETS IN TAIWAN OFFICIALS SAID TAIWAN ALSO IS NEGOTIATING SIMILAR JOINT VENTURES WITH AIRCRAFT MANUFACTURERS IN ITALY AND SWEDEN TO BOOST ITS BUDDING AEROSPACE INDUSTRY 9306110024 930611 BUSINESS BRIEF COLGATEPALMOLIVE CO BOARD APPROVES REPURCHASE OF UP TO FIVE MILLION SHARES COLGATEPALMOLIVE CO NEW YORK SAID ITS BOARD AUTHORIZED THE REPURCHASE OF UP TO FIVE MILLION COMMON SHARES FROM TIME TO TIME IN EITHER PRIVATE OR OPENMARKET TRANSACTIONS COLGATEPALMOLIVE HAS ABOUT 159 MILLION SHARES OUTSTANDING THE SHARES CLOSED YESTERDAY AT 53625 UP 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING REUBEN MARK CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE CONSUMER PRODUCTS CONCERN SAID THE PROGRAM WILL MAINTAIN THE COMPANY'S LOW COST OF CAPITAL WITH AN APPROPRIATE LEVEL OF LEVERAGE DEBT REPRESENTED 33 OF TOTAL CAPITAL AS OF MARCH 31 THE COMPANY SAID THIS PROGRAM IS IN ADDITION TO A REPURCHASE PROGRAM FOR 25 MILLION SHARES APPROVED EARLIER THIS YEAR TO BE USED FOR EMPLOYEE BENEFIT PLANS 9306110023 930611 PUBLISHING NEW YORK TIMES TO BUY PARENT OF BOSTON GLOBE BY JOHN R WILKE AND RANDALL SMITH STAFF REPORTERS OF THE WALL STREET JOURNAL EXPANDING ITS DOMINANCE IN THE NORTHEASTERN NEWSPAPER MARKET NEW YORK TIMES CO AGREED TO BUY THE PARENT OF THE BOSTON GLOBE FOR 107 BILLION IN CASH AND STOCK THE BOARD OF AFFILIATED PUBLICATIONS INC ACCEPTED THE 15ASHARE OFFER AT A MEETING YESTERDAY ACCORDING TO PEOPLE FAMILIAR WITH THE NEGOTIATIONS THE MERGER ACCORD WAS BEING COMPLETED LAST NIGHT WITH AN ANNOUNCEMENT EXPECTED TODAY THE AGREEMENT CONTAINS PROVISIONS MEANT TO ENSURE A CONTINUED LOCAL VOICE FOR THE CURRENT MANAGEMENT OF THE GLOBE NEW ENGLAND'S LARGEST NEWSPAPER THE TRANSACTION IS BELIEVED TO BE THE BIGGEST US NEWSPAPER ACQUISITION REPRESENTATIVES OF BOTH NEWSPAPERS DECLINED TO COMMENT YESTERDAY THIS AMOUNTS TO A ROYAL MARRIAGE BETWEEN TWO OF THE NATION'S GREAT PUBLISHING DYNASTIES SAID JOHN REIDY AN ANALYST AT SMITH BARNEY HARRIS UPHAM & CO IT JOINS THE SULZBERGERS OF THE TIMES WITH THE TAYLOR FAMILY WHICH HAS RUN THE GLOBE FOR MORE THAN A CENTURY AFFILIATED PUBLICATIONS FACED A 1996 EXPIRATION OF FAMILY TRUSTS THAT CONTROLLED A MAJORITY OF SHARES IT HAS HAD MERGER DISCUSSIONS IN RECENT YEARS WITH OTHER MAJOR PUBLISHERS INCLUDING TIMES MIRROR CO KNIGHTRIDDER INC AND MOST RECENTLY WASHINGTON POST CO WHICH WAS INVITED OUT OF THE LATEST TALKS A GLOBE INSIDER SAID THE AGREEMENT HAD BEEN WIDELY EXPECTED IN BOSTON ALAN EISNER MANAGING EDITOR OF THE BOSTON HERALD A SCRAPPY TABLOID COMPETITOR OWNED BY RUPERT MURDOCH'S NEWS CORP SAID HE EXPECTED FEW CHANGES TO RESULT WE WELCOME THE NEW YORK TIMES TO BOSTON THE BIGGER THEY ARE THE HARDER THEY FALL HE SAID THE AGREEMENT GIVES THE TIMES 60 OF THE SEATS ON A NEW SUBSIDIARY BOARD TO BE FORMED TO GOVERN THE GLOBE IT ALSO GIVES GLOBE PUBLISHER WILLIAM O TAYLOR THE RIGHT TO REMAIN FOR A NUMBER OF YEARS AND THE RIGHT TO CHOOSE HIS OWN SUCCESSOR WHO IS WIDELY EXPECTED TO BE BENJAMIN TAYLOR NAMED GLOBE PRESIDENT LAST MONTH THE TIMES OFFER GIVES HOLDERS OF AFFILIATED'S 512 MILLION CLASS A SHARES THE RIGHT TO RECEIVE UP TO 15 OF THE PRICE IN CASH WHILE HOLDERS OF 198 MILLION SUPERVOTING CLASS B SHARES MUST ACCEPT ALL STOCK AN EARLIER OFFER AT THE 15ASHARE PRICE REJECTED BY AFFILIATED IN LATE JANUARY DIDN'T GIVE CLASS A SHARES THE ALLSTOCK OPTION THAT WOULD HAVE SUBJECTED SOME LONGTIME HOLDERS TO A BIG CAPITALGAINS TAX THE PRICE TAG AMOUNTS TO ABOUT 26 TIMES REVENUE FOR AFFILIATED WHICH REPORTED 1992 SALES OF 414 MILLION THE TIMES'S 1992 REVENUE WAS 177 BILLION THE DEAL IS SUBJECT TO APPROVAL BY HOLDERS OF BOTH COMPANIES EXPECTED BY LATE SEPTEMBER WITH A CLOSING SHORTLY AFTERWARD MR REIDY THE SMITH BARNEY ANALYST SAID THE ONLY DRAWBACK OF THE COMBINATION IS THAT THE TIMES HAS REALLY PUT ALL ITS APPLES IN THE NORTHEAST CORRIDOR BASKET BUT HE ADDED IF YOU BELIEVE AS THEY DO THAT THE NORTHEAST'S ECONOMY IS GOING TO COME AROUND THIS DEAL IS THE PERFECT FIT HE SAID THAT WITH MOST MAJOR CAPITAL PROJECTS FINISHED AT THE GLOBE AND NEARLY COMPLETED AT THE TIMES THE COMBINED COMPANIES COULD BECOME A REAL CASHGENERATING MACHINE AS FOR THE RICH PRICE OFFERED BY THE TIMES MR REIDY CALLED THE DEAL A GREAT PAPER AT A GOOD PRICE HE NOTED THAT AFFILIATED OWNERS HAD ALREADY BEEN ENRICHED BY MR TAYLOR'S EARLIER INVESTMENT IN MCCAW CELLULAR COMMUNICATIONS INC WHICH YIELDED HUGE RETURNS FOR HOLDERS THE AGREEMENT ALSO GIVES THE TIMES AN OPTION KNOWN AS A LOCKUP AGREEMENT TO ACQUIRE 19 OF AFFILIATED'S STOCK AT 15 A SHARE THAT PROVISION IS MEANT TO REDUCE THE LIKELIHOOD THAT A HIGHER BIDDER COULD GAIN CONTROL THE AGREEMENT DOESN'T GIVE ANY PREMIUM TO HOLDERS OF THE SUPERVOTING B SHARES LARGELY HELD BY THE FAMILY MEMBERS A PERSON CLOSE TO THE NEGOTIATIONS SAID JAMES D SQUIRES A FORMER EDITOR OF THE CHICAGO TRIBUNE APPLAUDED THE MERGER DESPITE HIS OUTSPOKEN CRITICISM OF THE EFFECT OF CORPORATE CHAINOWNERSHIP IN THE NEWSPAPER INDUSTRY IF THE GLOBE HAD TO BE BOUGHT IT IS GOING TO THE COMPANY THAT IS MOST LIKE ITSELF HE SAID IT MAY EVEN BECOME A BETTER PAPER FOR IT REACTION AT THE GLOBE WAS MOSTLY POSITIVE DESPITE SOME SORROW FOR THE END OF AN ERA DAVID NYHAN A VETERAN COLUMNIST SAID THAT WHILE WE LAMENT THE PASSING OF THE TAYLORS' PRINCIPLED YANKEE PATERNALISM WHICH HAS MEANT SO MUCH TO THE REGION THE TIMES IS THE GOLD STANDARD IN JOURNALISM HE ADDED I HOPE THEY DON'T SCREW UP THE FRANCHISE THE GLOBE IS AFFILIATED'S MAJOR HOLDING TIMES CO ALREADY OWNS 31 SMALLER NEWSPAPERS MOSTLY IN THE SOUTH AND IN CALIFORNIA AND FIVE TELEVISION STATIONS TIMES CO HAS 785 MILLION COMMON SHARES OUTSTANDING WITH A CURRENT MARKET VALUE OF ABOUT 21 BILLION REFLECTING EXPECTED DILUTION FROM ISSUANCE OF NEW SHARES FOR THE PURCHASE TIMES STOCK FELL 625 CENTS YESTERDAY TO 26875 IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE SHARES OF AFFILIATED FELL 25 CENTS TO 1325 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9306110022 930611 WHO'S NEWS BELL ATLANTIC CORP BELL ATLANTIC CORP PHILADELPHIA RALPH J SZYGENDA 44 YEARS OLD WAS NAMED VICE PRESIDENT OF INFORMATION SYSTEMS AND CHIEF INFORMATION OFFICER EFFECTIVE JUNE 28 AT THIS REGIONAL BELL TELECOMMUNICATIONS COMPANY MR SZYGENDA WHO IS CURRENTLY VICE PRESIDENT OF INFORMATION SYSTEMS AND SERVICES AND CHIEF INFORMATION OFFICER AT TEXAS INSTRUMENTS INC DALLAS SUCCEEDS JOSEPH T AMBROZY 54 WHO BECAME VICE PRESIDENT OF STRATEGIC PLANNING FOR BELL ATLANTIC IN DECEMBER 9306110020 930611 BUSINESS BRIEF AGRIEMPIRE INC FIRM PRESIDENT ARE CHARGED ON WATER USED IN IRRIGATION AGRIEMPIRE INC AND ITS PRESIDENT 53YEAROLD JAMES LARRY MINOR WERE INDICTED ON 33 COUNTS BY A FEDERAL GRAND JURY IN LOS ANGELES FOR ALLEGEDLY IRRIGATING POTATO CROPS WITH NONDISINFECTED WASTE WATER THE INDICTMENT CLAIMS THAT AGRIEMPIRE SAN JACINTO CALIF OBTAINED THE WASTE WATER FROM THE EASTERN MUNICIPAL WATER DISTRICT IN CALIFORNIA CLAIMING THAT IT WOULD USE THE WATER ONLY FOR GROWING CROPS FOR SEED OR ANIMAL CONSUMPTION BUT TO INCREASE PROFITS THE INDICTMENT ALLEGES THE CLOSELY HELD COMPANY USED THE CHEAPER WASTE WATER TO IRRIGATE POTATO CROPS WHICH ULTIMATELY WOUND UP IN SUPERMARKETS AND FASTFOOD RESTAURANTS AROUND THE COUNTRY XAVIER HERMOSILLO A SPOKESMAN FOR AGRIEMPIRE SAID THE COMPANY NEVER HAS AND NEVER WILL USE RECLAIMED WATER ON ITS POTATO CROP THE INDICTMENT ALSO ALLEGES THAT THE COMPANY ILLEGALLY STORED TRANSPORTED AND DISPOSED OF HAZARDOUS WASTE IN ONE CASE SECRETLY BURYING USED PESTICIDE CONTAINERS ON ITS PROPERTY IF CONVICTED MR MINOR FACES FINES OF 250000 PER COUNT AND AS MUCH AS 159 YEARS IN PRISON THE COMPANY FACES FINES OF 500000 PER COUNT 9306110019 930611 PORT AUTHORITY ACTS TO SET ASIDE WORK FOR MINORITY BIDDING NEW YORK THE PORT AUTHORITY OF NEW YORK & NEW JERSEY ANNOUNCED THAT IT WOULD REESTABLISH SETASIDE PROGRAMS THAT WILL ENHANCE CONTRACTING OPPORTUNITIES FOR MINORITY AND WOMANOWNED FIRMS THE PORT AUTHORITY ALSO SAID IT WOULD GIVE THE REGIONAL ALLIANCE FOR SMALL CONTRACTORS INC UP TO 350000 TOWARD THE ALLIANCE'S CONTINUED ASSISTANCE TO SMALL MINORITY AND WOMANOWNED CONTRACTING FIRMS INVOLVED IN PORT AUTHORITY CAPITAL PROJECTS THE PORT AUTHORITY WHICH OWNS AND OPERATES THE WORLD TRADE CENTER HUDSON RIVER BRIDGE AND TUNNEL CROSSINGS THREE MAJOR AIRPORTS AND PORT FACILITIES IN NEW YORK AND NEW JERSEY SAID UNDER ITS REESTABLISHED PREFERENCE PROGRAM CERTAIN CONTRACTS WILL BE SET ASIDE FOR BIDDING BY MINORITYOWNED AND FEMALEOWNED FIRMS THE AGENCY HAD SUSPENDED ITS SETASIDE PROGRAMS IN 1989 WHEN THE SUPREME COURT RULED THAT A RICHMOND VA SETASIDE PROGRAM WAS UNCONSTITUTIONAL BECAUSE IT WAS NOT BASED ON DOCUMENTED DISCRIMINATION AGAINST MINORITIES IN THE LOCAL AREA THE PORT AUTHORITY SAID IT USED ITS OWN DATA AS WELL AS DATA FROM STUDIES BY NEW YORK AND NEW JERSEY TO DOCUMENT THAT WOMENOWNED AND MINORITYOWNED FIRMS WERE NOT RECEIVING CONTRACTS IN THE EXPECTED PROPORTION THE PORT AUTHORITY EXPECTS TO CONTRACT FOR ABOUT 4 BILLION OVER THE NEXT FOUR YEARS ON VARIOUS CAPITAL PROJECTS 9306110018 930611 CBOT EXPANDS ITS GARBAGE IN CASH OUT PLAN BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE CHICAGO BOARD OF TRADE IN A CONTINUING CAMPAIGN TO TURN POLLUTION INTO A COMMODITY SAID IT WOULD DEVELOP A MARKET IN RECYCLABLE MATERIALS SUCH AS PLASTIC PAPER AND GLASS THE CBOT ALREADY RUNS A QUARTERLY AUCTION IN RIGHTS TO POLLUTE THE ENVIRONMENT AS PART OF A SULFUR DIOXIDEREDUCTION PROGRAM ADMINISTERED BY THE US ENVIRONMENTAL PROTECTION AGENCY I FULLY EXPECT TO ADD RECYCLABLE MATERIALS TO THE ENVIRONMENTAL COMPLEX WE LAUNCHED AT THE CBOT IN MARCH WITH THE FIRST AUCTION OF EPA SULFURDIOXIDE EMISSION ALLOWANCES SAID PATRICK ARBOR CBOT CHAIRMAN THE CHICAGO EXCHANGE THE WORLD'S BIGGEST COMMODITY MARKET IS COOPERATING IN THE VENTURE WITH A GOVERNMENTANDINDUSTRY GROUP CALLED THE RECYCLING ADVISORY COUNCIL BASICALLY WE'RE TRYING TO MAKE A COMMERCIAL FEEDSTOCK OUT OF PRODUCTS THAT PREVIOUSLY HAVE BEEN GARBAGE SAID DAVID DOUGHERTY CHAIRMAN OF THE COUNCIL'S MARKET DEVELOPMENT COMMITTEE WE DECIDED THESE WASTES NEEDED A MORE FORMAL MARKETPLACE WHERE BUYERS AND SELLERS CAN AGREE ON PRICES FOR RECYCLABLE MATERIALS MR DOUGHERTY SAID THE CBOT WILL DEVELOP AN ELECTRONIC BULLETIN BOARD ON WHICH BUYERS AND SELLERS OF REUSABLE WASTES CAN DISPLAY THEIR BIDS AND OFFERS THE EXCHANGE WILL FOCUS FIRST ON GLASS AND CERTAIN KINDS OF PLASTIC ALTHOUGH THE SYSTEM ALSO COULD BE USED FOR SCRAP PAPER AND OTHER KINDS OF REUSABLE WASTE MR DOUGHERTY SAID POTENTIAL USERS OF THE RECYCLABLE MARKET WOULD INCLUDE PLASTICS AND GLASS MANUFACTURERS AND PULP AND PAPER COMPANIES MEMBERS OF THE RECYCLING ADVISORY COUNCIL BEGAN MEETING YESTERDAY WITH CBOT STAFF TO HAMMER OUT DETAILS OF THE PROGRAM AMONG OTHER THINGS THE EXCHANGE NEEDS TO DECIDE WHETHER TO REQUIRE MARKET PARTICIPANTS TO POST PERFORMANCE BONDS BEFORE ALLOWING ANY PARTICULAR COMPANY TO BID IN ITS RECYCLABLE MARKET SUCH A REQUIREMENT COULD MEAN THAT SMALLER COMPANIES THAT WANTED TO USE THE MARKET PROBABLY WOULD HAVE TO DO SO THROUGH BROKERAGE FIRMS MR DOUGHERTY SAID THE CBOT HOPES TO OPEN THE RECYCLABLE MARKET BY YEAR END IF THE CONCEPT WORKS THE EXCHANGE ALSO MIGHT CONSIDER TRADING FUTURES CONTRACTS ON RECYCLABLE MATERIALS WHICH WOULD BE COMMITMENTS TO BUY WASTE MATERIALS IN THE FUTURE FOR A PREDETERMINED PRICE 9306110017 930611 WHO'S NEWS XEROX CORP NAMES EXOFFICER OF NEXT TO OPERATIONS POST STAMFORD CONN XEROX CORP NAMED PETER VAN CUYLENBURG FORMER PRESIDENT AND CHIEF OPERATING OFFICER OF NEXT COMPUTER INC AN EXECUTIVE VICE PRESIDENT OPERATIONS EFFECTIVE JULY 1 MR VAN CUYLENBURG 45 YEARS OLD WHO HELD HIS POST AT NEXT REDWOOD CITY CALIF FROM MARCH 1992 UNTIL THIS APRIL RESIGNED FOLLOWING THE COMPANY'S DECISION TO LEAVE THE COMPUTER SYSTEMS BUSINESS MR VAN CUYLENBERG SAID HE AND STEVEN P JOBS FOUNDER OF NEXT AND COFOUNDER OF APPLE COMPUTER INC HAD AN AMIABLE PARTING OF THE WAYS AFTER MR JOBS DECIDED TO FOCUS NEXT ON THE SOFTWARE BUSINESS THEREBY ELIMINATING THE NEED FOR MR VAN CUYLENBERG TO BUILD UP THE HARDWARE SIDE THE JOB HE HAD COME TO PERFORM THE POSITION MR VAN CUYLENBURG ASSUMES AT XEROX HAS BEEN VACANT SINCE THE DEATH A YEAR AGO OF VITTORIO CASSONI FOUR DOCUMENTPROCESSING BUSINESS DIVISIONS WILL REPORT TO MR VAN CUYLENBERG HE SAID HE PLANS TO USE HIS COMPUTER BACKGROUND TO HELP XEROX DEVELOP ALLIANCES THAT AREN'T NECESSARILY RELATED TO ITS CORE BUSINESSES AND ALSO TO HELP INTEGRATE COPIERS WITH COMPUTERS XEROX'S ADVANCED OFFICE DOCUMENT SERVICE DIVISION FOR EXAMPLE RECENTLY ANNOUNCED A PARTNERSHIP WITH MICROSOFT INC TO DEVELOP LINKS BETWEEN PERSONAL COMPUTERS AND COPIERS THAT WILL ENABLE THEM TO INTERACT MORE FREELY XEROX IS ONE OF THOSE BUSINESSES THAT IS SO LARGE AND REACHES SO FAR INTO CORPORATE AMERICA AND THE WORLD THAT IT WILL WANT MANY ALLIANCES MR VAN CUYLENBERG SAID MR VAN CUYLENBURG BECOMES ONE OF THE EIGHT MEMBERS OF THE XEROX CORPORATE OFFICE WHICH IS RESPONSIBLE FOR THE LEADERSHIP OF XEROX AND IS HEADED BY THE CHAIRMAN AND CHIEF EXECUTIVE PAUL A ALLAIRE BEFORE JOINING NEXT MR VAN CUYLENBURG WHO IS BRITISH SPENT THREE YEARS WITH CABLE & WIRELESS PLC IN LONDON AS A GROUP DIRECTOR AND AS CHIEF EXECUTIVE OF MERCURY COMMUNICATIONS LTD A SUBSIDIARY BEFORE THAT HE WAS WITH TEXAS INSTRUMENTS INC DALLAS FOR 16 YEARS 9306110016 930611 INTERNATIONAL BRIEF LVMH MOET HENNESSY LOUIS VUITTON FIRM EXPECTS PROFIT FOR YEAR TO ABOUT MATCH 1992 LEVEL LVMH MOET HENNESSY LOUIS VUITTON SA SAID 1993 PROFIT SHOULD HOLD FIRM AROUND THE 1992 LEVEL OF 301 BILLION FRENCH FRANCS 5472 MILLION BUT OFFICIALS OF THE FRENCH LUXURY GOODS MAKER EXPECT TO SEE FIRSTHALF NET INCOME DECLINE FROM THE YEAREARLIER PERIOD OFFICIALS SPEAKING AT THE COMPANY'S SHAREHOLDER MEETING GAVE NO SPECIFIC ESTIMATES FOR THE FIRSTHALF PERFORMANCE THE COMPANY SAID FACTORS HURTING LVMH RESULTS THIS YEAR INCLUDE THE DEVALUATION OF THE POUND AND THE WEAK CHAMPAGNE BUSINESS ONE BRIGHT SPOT HOWEVER IS LVMH'S PERFUME BUSINESS PARTICULARLY PERFUMES BY CHRISTIAN DIOR AND GIVENCHY LAUNCHED LAST YEAR THE COMPANY SAID MEANWHILE SHAREHOLDERS APPROVED A 5FOR1 SHARE SPLIT PROPOSED BY THE COMPANY 9306110015 930611 FOREIGN EXCHANGE DOLLAR SOFTENS ACROSS BOARD AS IMPACT OF MAY'S PRODUCER PRICE DATA IS DOUBTED BY XANDER MELLISH STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR WAS SOFTER ACROSS THE BOARD THURSDAY AS PLAYERS' ANTICIPATION FADED THAT US PRODUCER PRICE DATA FOR MAY DUE FRIDAY WOULD PROMPT THE FEDERAL RESERVE TO RAISE INTEREST RATES DESPITE REPORTED INTERVENTION BY THE BANK OF JAPAN THE DOLLAR FELL TO A NEW POSTWORLD WAR II LOW AGAINST THE YEN EARLY IN THE ASIAN DAY SHORTLY AFTER AN OPTIMISTIC REPORT ON THE JAPANESE ECONOMY WAS RELEASED BY JAPAN'S ECONOMIC PLANNING AGENCY TRADERS SAID ABOUT NOON FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10606 YEN AND AT 16287 MARKS THE US PRODUCER PRICE INDEX OR PPI IS A CLOSELY WATCHED GAUGE OF INFLATION MARKET EXPECTATIONS ARE FOR IT TO HAVE BEEN UNCHANGED IN MAY FROM APRIL THE MAY CORE PPI WHICH EXCLUDES THE FOOD AND ENERGY COMPONENTS IS EXPECTED TO HAVE RISEN 02 FROM APRIL THE EXPECTED PPI NUMBERS SHOW MODERATE TO LOW INFLATION ACCORDING TO RICK SNYDER A CORPORATE TRADER AT NATIONAL WESTMINSTER USA I DON'T THINK THE FED IS GOING TO DO ANYTHING BASED ON THAT HIGHER INTEREST RATES GENERALLY MAKE A CURRENCY MORE ATTRACTIVE BY INCREASING THE RATE OF RETURN ON INVESTMENT THE DOLLAR'S FAILURE TO SUSTAIN ITSELF ABOVE 16400 MARKS A KEY TECHNICAL LEVEL ALSO SPURRED SALES OF THE CURRENCY TRADERS SAID THURSDAY'S REPORT THAT SHOWED NEW US STATE JOBLESS CLAIMS FALLING 2000 IN THE JUNE 5 WEEK HAD LITTLE IMPACT ON THE DOLLAR'S LEVELS AS THE DATA DIDN'T DIFFER MUCH FROM EXPECTATIONS TRADERS SAID THE DOLLAR HIT A NEW LOW OF 10585 YEN DURING ASIAN TRADING AT THE BOTTOM OF A SLIDE SET OFF BY A REPORT FROM JAPAN'S ECONOMIC PLANNING AGENCY DEALERS SAID THE REPORT SUGGESTED NOT ONLY THAT JAPAN'S RECESSION MAY HAVE HIT BOTTOM BUT THAT THE YEN'S STRENGTH MIGHT NOT DELAY AN ECONOMIC TURNAROUND THE REPORT IS THE FIRST TIME ANY JAPANESE OFFICIALS HAVE SAID A STRONGER YEN WOULDN'T DERAIL AN ECONOMIC RECOVERY SAID JOHN LYMAN A SENIOR CUSTOMER DEALER AT BANK OF TOKYO IN NEW YORK THE DOLLAR'S DECLINE GAINED EXTRA FORCE WHEN REMARKS BY YASUSHI MIENO BANK OF JAPAN GOVERNOR THAT YEN BUYING PRESSURE REMAINS STRONG WERE INTERPRETED AS AN ENDORSEMENT OF THE YEN'S MOVES TRADERS SAID BUT THE YEN TURNED LOWER AFTER THE BANK OF JAPAN REPORTEDLY BOUGHT DOLLARS AT ABOUT 106 YEN AND AFTER PROFITTAKING BY US INVESTMENT TRUSTS THEY SAID ALSO DUE FOR RELEASE FRIDAY IS JAPAN'S QUARTERLY TANKAN SURVEY OF BUSINESS ACTIVITY WHICH IS EXPECTED TO POINT TO MORE ECONOMIC GLOOM IN JAPAN BUT THE BANK OF TOKYO'S MR LYMAN SAID A BEARISH REPORT WOULDN'T NECESSARILY BE BEARISH FOR THE YEN EVEN THOUGH IT MIGHT PUT PRESSURE ON THE BANK OF JAPAN TO CUT INTEREST RATES MEANWHILE STERLING POSTED A LATEDAY RALLY AFTER PUNCTURING SEVERAL IMPORTANT TECHNICAL RESISTANCE LEVELS WHICH TRIGGERED FRESH BUYING PLAYERS SAID NEVERTHELESS THEY SAID THERE IS SOME RISK OF STERLING BEARISHNESS ON THE RELEASE FRIDAY OF FIRSTQUARTER 1993 UK TRADE STATISTICS THE FIGURES ARE EXPECTED TO SHOW BRITAIN'S TRADE GAP WITH THE EUROPEAN COMMUNITY WIDENING AS THE BRITISH ECONOMY BEGINS TO RECOVER AND CONSUMES MORE IMPORTS CONTINENTAL EUROPEAN ECONOMIES CONTINUE TO SLUMP THOUGH AND HAVE BOUGHT FEWER BRITISH PRODUCTS A DROP IN EXPORTS COULD POINT TO WEAKNESS IN BRITAIN'S NASCENT RECOVERY THAT RECOVERY HAS UNDERPINNED STERLING IN RECENT WEEKS PARTICIPANTS SAID THERE WAS LITTLE ACTION IN THE MARK THURSDAY WITH GERMAN MARKETS CLOSED FOR A HOLIDAY TRADERS SAID THERE WAS SOME BUYING OF THE MARK FOR YEN IN PROFITTAKING ON THE MARK'S RECENT WEAKNESS AGAINST THE JAPANESE CURRENCY LATE THURSDAY IN NEW YORK THE MARK TRADED AT 6514 YEN UP FROM 6507 YEN LATE WEDNESDAY DURING THE DAY THE MARK TOUCHED A LOW OF 6464 YEN A NEW RECORD TRADERS SAID LOOKING AHEAD THE MARKET ALSO IS CLOSELY WATCHING USJAPAN TRADE TALKS SCHEDULED TO OPEN FRIDAY DEALERS SAID 9306110014 930611 ENVIRONMENT WALMART STORE COMES IN COLORS BUT IS ALL GREEN BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL LAWRENCE KAN IT ISN'T EASY BEING GREEN ACCORDING TO KERMIT THE FROG WALMART STORES INC IS FINDING THAT IT ISN'T CHEAP EITHER THE NATION'S LARGEST RETAILER UNVEILED ITS ENVIRONMENTAL DEMONSTRATION STORE HERE YESTERDAY A 121264SQUAREFOOT PROTOTYPE FOR THE ECOLOGICALLY SENSITIVE STORES OF THE FUTURE BUT FOR A COMPANY FAMOUS FOR BLEEDING EVERY LAST PENNY OUT OF ITS COST STRUCTURE THE QUESTION REMAINS WILL IT BE COSTEFFICIENT IN THE SHORT RUN PROBABLY NOT WHILE WALMART ISN'T REVEALING THE COST OF THIS PROTOTYPE DAVID GLASS PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS ALL THE BILLS AREN'T IN YET CONSULTANTS SAY IT PROBABLY WILL RUN 10 TO 20 ABOVE THE COMPANY'S USUAL CONSTRUCTION COSTS WALMART STORES OF THIS SIZE TYPICALLY COST ABOUT 20 A SQUARE FOOT OR ABOUT 24 MILLION IN THE LONG RUN HOWEVER THE RETAILER HOPES ENERGY SAVINGS WILL MAKE UP AT LEAST PART OF THE COST SAYS TOM SEAY WALMART'S EXECUTIVE VICE PRESIDENT FOR REAL ESTATE AND CONSTRUCTION THE ROOF ON THE PROTOTYPE IS SUPPORTED BY ARCHING WOODEN BEAMS MADE FROM SECONDGROWTH TIMBER SELECTIVELY HARVESTED RATHER THAN CLEARCUT THE COMPANY SAYS THE CEILING IS MUCH HIGHER THAN IN OTHER WALMARTS AND THE CEMENT BLOCKS ON THE SIDES OF THE BUILDING WERE LAID OUT SO THAT WINDOWS CAN EASILY BE POPPED IN THAT WAY SHOULD WALMART EVER VACATE A SECOND FLOOR CAN BE BUILT IN AND THE ENTIRE BUILDING TURNED INTO APARTMENTS WORKING WITH ANDERSEN WINDOWS INC OF BAY PORT MINN WALMART'S CONSULTANTS DESIGNED A LOWENERGY SYSTEM THAT RELIES ON SKYLIGHTS WITH ELECTRONIC DAYLIGHT SENSORS ON THE ROOF THAT CAN DIM OR BRIGHTEN FLUORESCENT LIGHTS ACCORDING TO HOW MUCH LIGHT IS COMING IN FROM OUTSIDE IF THE SUN IS SHINING WE USE IT SAYS WILLIAM MCDONOUGH THE ARCHITECT BY USING FEWER LIGHTS AND WELLINSULATED WINDOWS THE STORE MINIMIZES COOLING AND HEATING DEMANDS MR MCDONOUGH SAYS THE COOLING SYSTEM DOESN'T USE OZONEDEPLETING CHLOROFLUOROCARBONS OR CFCS AND IT TAKES ADVANTAGE OF CHEAPER OFFPEAK ELECTRIC POWER TO MAKE ICE AT NIGHT THAT IS USED TO COOL OFF AIR DURING THE DAY THE LIGHTED SIGN IN FRONT OF THE STORE IS SOLARPOWERED RECYCLED ASPHALT COVERS THE PARKING LOT WASTE WATER AND RUNOFF FROM THE STORE AND LOT COLLECT IN A HOLDING POND TO BE USED TO IRRIGATE THE EXCLUSIVELY NATIVE PLANTS AND SHRUBBERY THAT MAKE UP THE LANDSCAPING AND THE ONSITE RECYCLING CENTER THE FIRST IN THIS CITY CAN COMPACT WRAP AND OTHERWISE PROCESS EVERYTHING WHETHER WALMART AN INDUSTRY TRENDSETTER IN MANY AREAS CAN RECOUP ITS COSTS ON THE BUILDING OR ENOUGH OF THEM TO STAY COMPETITIVE MAY DETERMINE WHETHER GREEN RETAILING SPREADS THE BOTTOM LINE ON PROJECTS LIKE THESE IS OF COURSE THE BOTTOM LINE SAYS ARCHITECT KIRSTEN CHILDS WHO HAS WORKED ON OTHER ENVIRONMENTALLY SENSITIVE PROJECTS BY USING LESS ENERGY THROUGH RESOURCE CONSERVATION BY IMPROVING AIR QUALITY YOU CAN SAVE MONEY YOU CAN RAISE PRODUCTIVITY AND YOU CAN REDUCE ABSENTEEISM SHE SAYS IF WALMART'S EXPERIENCE CONFIRMS THESE BENEFITS I THINK THAT'LL DRIVE THE MARKET IN THIS DIRECTION PRETTY QUICKLY SAYS WILLIAM BROWNING DIRECTOR OF WHAT'S CALLED GREEN DEVELOPMENT AT THE ROCKY MOUNTAIN INSTITUTE A COLORADO THINK TANK THAT ADVISED WALMART ON THE PROJECT MEANWHILE COMPANY EXECUTIVES WERE BASKING IN THE PRAISE OF GREEN ARCHITECTS DESIGNERS AND EVEN THE DIRECTOR OF THE UNITED NATIONS' ENVIRONMENT PROGRAM WALMART HAS OFFERED TO SHARE WITH ANY OTHER INTERESTED COMPANY THE TECHNOLOGIES AND METHODS DEVELOPED FOR THIS PROJECT AND HOW THEY'VE WORKED THIS IS A COMPANY AFTER ALL THAT HAS AGGRESSIVELY PROMOTED ITS ENVIRONMENTAL CONSCIOUSNESS FOR SEVERAL YEARS NOW FOR EXAMPLE IT HAS PRODDED SUPPLIERS TO PROVIDE MORE ENVIRONMENTALLY FRIENDLY WARES AND PACKAGING USING SIGNS TO NOTIFY CONSUMERS OF THOSE WHO DO AND USING THE PROGRAM IN ITS ADVERTISING ENVIRONMENTALISTS SAY THAT OTHER COMPANIES HAVE BEEN MORE AGGRESSIVELY GREEN BUT QUIETER ABOUT IT ACCORDING TO A SPOKESWOMAN FOR THE NONPROFIT NATIONAL RECYCLING COALITION INC SEARS ROEBUCK & CO HAS TAKEN THE LEAD IN GETTING ITS VENDORS TO REDUCE PACKAGING MCDONALD'S CORP SAYS IT HAS SPENT MORE THAN 500 MILLION SINCE 1990 ON RECYCLED PRODUCTS RANGING FROM PAPER FOR NAPKINS TO BUILDING INSULATION AND ROOFING MATERIAL KMART CORP OFFERS RECYCLING COLLECTION ONSITE AND OTHER RETAILERS HAVE TURNED TO NONTOXIC PAINTS IN THEIR STORES STILL THIS APPEARS TO BE THE FIRST MAJOR RETAIL OUTLET IN THIS COUNTRY TO COMBINE THESE ELEMENTS AND A FEW OTHERS PLANNING FOR THE NEW STORE BEGAN THREE YEARS AGO UNDER AN ADVISORY COMMITTEE LED BY HILLARY RODHAM CLINTON A MEMBER OF WALMART'S BOARD UNTIL LAST YEAR AT YESTERDAY'S OPENING THE BUILDING'S DESIGNERS TALKED ABOUT ITS POTENTIAL GLOBAL SIGNIFICANCE THE MARVELOUS THING ABOUT WALMART IS THAT THEY'RE SO BIG SAYS MR MCDONOUGH WE CAN GO TO MANUFACTURERS OF BUILDING SUPPLIES AND WE CAN SAY IF THIS WORKS THIS IS THE MARKET OF THE FUTURE BECAUSE IT'S HUGE THIS FISCAL YEAR ALONE WALMART PLANS TO BUILD 150 NEW STORES AND TO REMODEL AND EXPAND ANOTHER 150 ALONG WITH PUTTING UP OR EXPANDING ANOTHER 130 SAM'S CLUBS AND WALMART SUPERCENTERS MR SEAY SAID MANY OF THE PRACTICES USED HERE ARE ALREADY IN USE AT ALL NEW WALMARTS NEW STORES ARE USING RECYCLED ASPHALT STEEL AND PLASTIC HE SAYS AND NEW STORES IN CALIFORNIA ALSO WILL HAVE SPECIALLY DESIGNED JOISTS THAT USE HALF THE WOOD OF STANDARD LAMINATED JOISTS WHICH MEANS 87 FEWER TREES OR ABOUT 6500 FEWER CUBICFEET OF WOOD WILL BE NEEDED FOR A PROJECT THIS SIZE FOR BUDGET REASONS WALMART SCALED BACK SOME OF ITS PLANS FOR THE STORE SO PAINT FREE OF TOXIC FUMES WAS USED ONLY IN AN ENVIRONMENTAL CLASSROOM AREA NEAR THE ENTRANCE RATHER THAN THROUGHOUT THE STORE AND ONLY HALF THE CEILING HAS SKYLIGHTS ANDERSEN WINDOWS SAYS THIS WILL LET THE COMPANY COMPARE THE LIGHTING AND ENERGY USE ON EACH SIDE MR BROWNING OF THE ROCKY MOUNTAIN INSTITUTE SAID THE ICECOOLING SYSTEM TURNED OUT TO BE MORE COMPLICATED MORE EXPENSIVE AND LESS EFFICIENT THAN HOPED MR SEAY SAYS THAT AND OTHER EXPENSIVE INNOVATIONS WILL GET CHEAPER AS THEY START BEING MASSPRODUCED AND HE SEEMS CONFIDENT THEY WILL FIND THEIR WAY INTO OTHER WALMARTS THAT THOUGHT IS ECHOED BY MR GLASS WHO PROMISES THAT THIS IS ONLY THE BEGINNING 9306110013 930611 CANADIAN STEEL OUTPUT OTTAWA CANADIAN STEEL PRODUCTION TOTALED 252961 METRIC TONS IN THE WEEK ENDED SATURDAY DOWN 06 FROM 254589 TONS IN THE PRECEDING WEEK AND DOWN 55 FROM 267587 TONS A YEAR EARLIER STATISTICS CANADA A GOVERNMENT AGENCY SAID A METRIC TON IS EQUAL TO 22046 POUNDS THE CUMULATIVE TOTAL FOR 1993 WAS 6151920 TONS UP 42 FROM 5904386 TONS A YEAR EARLIER 9306110012 930611 WHO'S NEWS CYGNUS THERAPEUTIC SYSTEMS INC CYGNUS THERAPEUTIC SYSTEMS INC REDWOOD CITY CALIF ANTHONY SS CHAN CONTROLLER OF THIS MAKER OF DRUGDELIVERY TECHNOLOGY AND PRODUCTS WAS NAMED CHIEF FINANCIAL OFFICER HE SUCCEEDS SHIRLEY LIU CLAYTON WHO IS LEAVING CYGNUS TO PURSUE OTHER OPPORTUNITIES 9306110011 930611 BRITISH AIRPORT TRAFFIC LONDON THE BRITISH AIRPORT MANAGEMENT GROUP BAA PLC SAID THAT PASSENGER TRAFFIC AT ITS SEVEN UK AIRPORTS ROSE TO 6850000 PASSENGERS IN MAY UP 29 FROM A YEAR EARLIER BAA'S SCOTTISH AIRPORTS IN GLASGOW ABERDEEN AND EDINBURGH LED THE GAIN HANDLING A TOTAL OF 879500 PASSENGERS UP 84 FROM A YEAR BEFORE 9306110010 930611 NEW CHIEF CONFRONTS A CHANGING GATT BY BHUSHAN BAHREE STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA LATE IN APRIL PETER SUTHERLAND CHAIRMAN OF ALLIED IRISH BANKS PLC AND FORMER EUROPEAN COMMUNITY COMPETITION COMMISSIONER MADE A BIG DECISION HE DECIDED TO GO FOR THE TOP JOB AT GATT IN THE FIVE WEEKS SINCE HE AND SOME OF THE KEENEST NEGOTIATORS AROUND HAVE TURNED TOPSYTURVY THE FORMERLY LANGUID WORLD OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE MR SUTHERLAND AT FIRST WASN'T SURE HE WANTED THE JOB THEN FACED STIFF OPPOSITION FROM TWO LATIN AMERICAN CANDIDATES WHEN HE DECIDED THAT HE DID NOW OFFICIALLY APPOINTED TO THE JOB WEDNESDAY HE SEEMS IMPATIENT TO SEIZE THE MOMENT TO REORDER TRADE RELATIONSHIPS AND RESHAPE WORLD AFFAIRS IN A TELEPHONE INTERVIEW IMMEDIATELY FOLLOWING THE ANNOUNCEMENT OF HIS APPOINTMENT HE SPOKE IN A RUSH OF WORDS AND A WHIRL OF IDEAS HE WANTS TO OPEN ECONOMIES TO MORE TRADE AND COMPETITON YET HE IS MINDFUL OF STAGNATING ECONOMIES AND LOST JOBS AN EC OFFICIAL RECENTLY DESCRIBED THE NEW GATT CHIEF AS AN INDEPENDENT SKILLFUL POLITICAL ANIMAL MR SUTHERLAND THE OFFICIAL MUSED COULD KNOCK THE HEADS OF THE EC AND US TOGETHER TO BREAK THEIR DEADLOCKS ON TRADE MATTERS HE MAY HAVE TO NEVER BEFORE HAS THERE BEEN A FIGHT FOR THIS JOB IN THE PAST EUROPE AND NORTH AMERICA DECIDED AND THE REST OF GATT ENDORSED THIS TIME TWO LATIN AMERICAN CONTENDERS JULIO LACARTEMURO OF URUGUAY AND LUIS FERNANDO JARAMILLO OF COLOMBIA ENTERED THE FRAY MR SUTHERLAND AND HIS SUPPORTERS PREVAILED ONLY AFTER A DRAWNOUT BATTLE THAT BROUGHT INTO SHARP FOCUS THE CHANGED STRUCTURE OF GATT FROM ITS ORIGINS IN 1948 AS A CONTRACT BETWEEN 23 MAINLY EUROPEAN AND NORTH AMERICAN COUNTRIES TO ITS CURRENT 111 MEMBERS MORE THAN 82 OF THEM DEVELOPING OR INDUSTRIALIZING THE STRUGGLE EXPOSED THE SENSITIVITY OF DEVELOPING COUNTRIES TO BEING SHUNTED ASIDE DICTATED TO OR PRESENTED WITH A FAIT ACCOMPLI THE BATTLE DIDN'T END WITH MR SUTHERLAND'S APPOINTMENT THE FIGHT JUST ENDED WAS ONLY A WHIFF OF WHAT PROMISES TO BE A TIME OF ACRIMONY AND OVERWHELMING CHANGE FOR AN ORGANIZATION STEEPED IN THE ETHOS OF WORLD WAR II FOR MOST OF THE WORLD'S PRODUCERS AND CONSUMERS OF GOODS RANGING FROM BANANAS TO JACQUARDS AND FOR THE JOBS THAT GO WITH THEM EVEN WHEN GIVING IN TO MR SUTHERLAND THE LATIN AMERICAN GROUP DELIVERED SOME PARTING SHOTS LEONORA DE SOLA DE SAUREL EL SALVADOR'S AMBASSADOR TO GATT AND HEAD OF THE GROUP TOLD THE HEADS OF DELEGATIONS WEDNESDAY THAT IF GATT IS TO HAVE ANY MEANINGFUL ROLE IT HAS TO EVOLVE IN A WAY THAT REFLECTS THE CHANGES WHICH ARE TAKING PLACE IN THE PATTERNS OF INTERNATIONAL TRADE SHE WARNED THAT FACED WITH A FAIT ACCOMPLI OUR COUNTRIES WILL HAVE TO REACT TO MATTERS WHICH ARE VITAL TO THE FUTURE A CLEAR WARNING THAT URUGUAY ROUND AGREEMENTS REACHED ELSEWHERE AND BROUGHT TO GENEVA TO BE MADE MULTILATERAL WILL FACE RESISTANCE THE WARNING COMES AT A DRAMATIC MOMENT FOR GATT FOR THE WORLD'S TRADING NATIONS INTEND TO WIDEN ITS SCOPE IN THE URUGUAY ROUND OF TALKS THE NEXT GATT WOULD COVER SERVICES THE MAIN AREA OF JOB CREATION IN INDUSTRIAL COUNTRIES AT GATT OFFICIALS ARE GLAD THAT THE CONTEST IS OVER AND THAT CALM AND ORDER WILL RETURN SOON SEVERAL OFFICIALS SAID THEY QUITE LIKE THE NOTION OF MR SUTHERLAND TAKING OVER THE HELM MR SUTHERLAND IT IS CLEAR WANTS TO DO THINGS EVEN IF HE WON'T SAY EXACTLY WHAT RIGHT NOW RHETORIC WILL NO LONGER SUFFICE HE SAYS OF POLITICAL STATEMENTS RELATING TO THE URUGUAY ROUND HE HOPES THE G7 SUMMIT IN JAPAN NEXT MONTH WILL PRODUCE A MARKETACCESS PACKAGE WITH SPECIFICS TO PUT ON THE TABLE IN GENEVA FOR MULTILATERAL AGREEMENT MAKING THE RIGHT GENERAL NOISES ISN'T ENOUGH HE SAYS TRADE DEFINES RELATIONSHIPS BETWEEN PEOPLES MR SUTHERLAND SAYS AND THE DEVELOPMENT OF THE URUGUAY ROUND IS THE DEFINING MOMENT FOR THE LATTER PART OF THE CENTURY THE WORLD HE SAYS IS ON A KNIFE EDGE DEVELOPING COUNTRIES HAVE BEEN OPENING THEIR ECONOMIES THE EASTWEST DIVIDE WHICH PROVIDED A SORT OF STABILITY IS GONE NOW INDUSTRIAL COUNTRIES NEED TO OPEN THEIR ECONOMIES I'M VERY CONCERNED ABOUT PROTECTIONISM HE SAYS BUT HE IS ALSO AWARE OF CONCERNS ABOUT NEGOTIATING AWAY JOBS TO DISTANT LANDS AND THE STRUCTURAL CHANGES IN INDUSTRIALIZED COUNTRIES THAT ARE CUTTING JOBS THAT MAY NEVER BE REPLACED THE URUGUAY ROUND WITH YET ANOTHER YEAREND DEADLINE THREE HAVE BEEN MISSED ALREADY IS AS MUCH ABOUT A DIVISION OF JOBS AS IT IS ABOUT CREATING THEM THUS THE WORLD'S POLITICAL LEADERS ARE DRAWN INTO THE ARENA PRESIDENT CLINTON ARGENTINA'S PRESIDENT CARLOS MENEM AND FRENCH PRESIDENT FRANCOIS MITTERAND HAVE ALL HAD SOMETHING TO DO WITH THE URUGUAY ROUND THIS POLITICIZATION OF LEADERSHIP AT THE HIGHEST LEVELS HAS MADE CONCLUDING THE ROUND MORE DIFFICULT TRADE NEGOTIATORS SAY THE NEGOTIATORS ONCE CUT DEALS IN GENEVA SECURING THE ADVANTAGES THEY NEEDED FOR THEIR COUNTRY BY GIVING AWAY SOMETHING IN RETURN THE DEALS WERE SENT TO THEIR CAPITALS FOR APPROVAL NOW NEGOTIATORS NEED TO EXERCISE THEIR SKILLS WITH THEIR POLITICAL MASTERS AS MUCH AS THEY DO WITH THEIR COMPETITORS ONE REASON IS THE VAST SCOPE OF THE URUGUAY ROUND WHICH SEEKS TO REORDER THE WHOLE TRADING LANDSCAPE WITH CONSIDERABLE IMPACT ON ECONOMIES THERE IS A FLOOD OF INFORMATION WHERE NEGOTIATORS ONCE COULD CARRY MUCH OF THE INFORMATION THEY NEEDED IN THEIR HEADS OR IN A SLIM BRIEFCASE THERE NOW ARE REAMS OF COMPUTERGENERATED LISTS LOBBY GROUPS ROAM WITH LISTS OF THEIR OWN DETAILING INDUSTRY PROBLEMS THE NEED FOR PROTECTION FROM FOREIGN COMPETITION ACCUSATIONS OF UNFAIR PRACTICES AND SUBSIDIES IT IS THIS JUNGLE THAT MR SUTHERLAND WILL ENTER IN A FEW WEEKS MR LACARTEMURO WHO FOUGHT UNTIL THE LAST FOR THE JOB BUT LOST NEVERTHELESS SAYS NO DOUBT MR SUTHERLAND'S LEADERSHIP AND MANAGEMENT EXPERIENCE WILL COME TO THE FORE HE WISHES MR SUTHERLAND WELL STILL THE SCARS OF THE LEADERSHIP CLASH ARE VISIBLE NORTH AMERICA EUROPE AND THE REST OF THE INDUSTRIALIZED COUNTRIES WITH ONE NOTABLE EXCEPTION JAPAN WERE CHALLENGED AS THEY NEVER WERE BEFORE TO RECOGNIZE THAT ABOUT 35 OF GATTREGULATED TRADE IN THE WORLD COMES FROM DEVELOPING COUNTRIES WHETHER ASIA OR EASTERN EUROPE LATIN AMERICA OR AFRICA THE POORER NATIONS IN TURN WERE REMINDED PAINFULLY THAT THEY NEED THE RICH MARKETS OF THE INDUSTRIAL WORLD BOTH NOW HAVE AN IDEA OF WHAT IS TO COME WHEN URUGUAY ROUND DEALS ARE DUMPED ON THE TABLE FOR CONSIDERATION AND APPROVAL BY ALL RULES OF THE TALKS REQUIRE A CONSENSUS AS MR SUTHERLAND HAS LEARNED CONSENSUS DOESN'T COME EASILY I NEVER THOUGHT THE MATTER WOULD BE AN EASY ONE SAYS MR SUTHERLAND JAPAN ONLY INDICATED AS LATE AS MONDAY AND EVEN THEN SEEMINGLY RELUCTANTLY THAT IT WOULD APPROVE MR SUTHERLAND AND LATIN AMERICAN NATIONS GAVE IN ONLY AT THE VERY END TRADE NEGOTIATORS SAID THAT ONE PRICE FOR MR LACARTEMURO'S LASTMINUTE WITHDRAWAL FROM CONSIDERATION WAS A GENTLEMEN'S PROMISE THAT A LATIN AMERICAN WOULD BE NAMED DEPUTY DIRECTORGENERAL 9306110009 930611 WHO'S NEWS QUAKER STATE TAPS CAMPBELL SOUP'S BAUM AS CHAIRMAN AND CHIEF OIL CITY PA QUAKER STATE CORP TAPPED HERBERT M BAUM AS CHAIRMAN AND CHIEF EXECUTIVE HOPING THE 15YEAR CAMPBELL SOUP CO VETERAN CAN REVERSE THE MOTOROIL MAKER'S DECLINE MR BAUM 56 YEARS OLD WAS HIGHLY REGARDED AT CAMPBELL FOR HIS MARKETING SAVVY HE RAN THE COMPANY'S SOUP BUSINESS BETWEEN 1981 AND 1985 THE LAST TIME PERCAPITA SOUP CONSUMPTION GREW AND WAS RESPONSIBLE FOR THE POPULAR SOUP IS GOOD FOOD CAMPAIGN MR BAUM WAS PASSED OVER FOR THE TOP JOB AT CAMPBELL IN 1990 IN FAVOR OF DAVID W JOHNSON I WAS THE NO 2 GUY AT CAMPBELL SOUP HERE'S AN OPPORTUNITY TO RUN MY OWN SHOW MR BAUM SAID IN AN INTERVIEW AT QUAKER STATE MR BAUM MUST RESCUE A BRAND NAME THAT HAS BEEN BATTERED IN RECENT YEARS QUAKER STATE'S MARKET SHARE OVER 22 EARLY IN THE 1980S FELL TO UNDER 14 IN 1990 AMID PRICE WARS AND A BREAKDOWN IN THE COMPANY'S DISTRIBUTION SYSTEM CHAIRMAN JACK W CORN TRIED TO STOP THE SKID BY ELIMINATING PRICE DISCOUNTS AND TAKING A HIGHEND STRATEGY THIS AGGRAVATED THE DECLINE BUT THE COMPANY SAID ITS MARKET SHARE HAS SINCE STABILIZED HERE'S A BRAND IN THE MOTOR OIL BUSINESS THAT WAS ONCE AT THE TOP OF THE HEAP AND SLIPPED OVER THE YEARS MR BAUM SAID AND I'M GOING TO BRING IT BACK THE EXECUTIVE SAID HE HASN'T CHOSEN A STRATEGY BUT WILL CONCENTRATE ON BRAND BUILDING MR CORN 63 SAID LAST YEAR THAT HE WOULD RETIRE BY THIS OCTOBER BEGINNING A SEARCH FOR A SUCCESSOR HE WILL STAY ON THE COMPANY'S BOARD THROUGH OCTOBER CAMPBELL'S MR JOHNSON SAID THAT WHILE THE COMPANY IS SORRY ABOUT MR BAUM'S DEPARTURE IT PROVIDES US WITH THE OPPORTUNITY TO REFINE AND EXPAND RESPONSIBILITIES FOR THE COMPANY'S MANAGEMENT 9306110008 930611 BUSINESS BRIEF CORNING TO SUPPLY RUSSIAN CABLE MAKERS WITH OPTICAL FIBER CORNING NY CORNING INC SAID IT SIGNED A LONGTERM AGREEMENT TO BECOME ONE OF RUSSIA'S FIRST MAJOR SUPPLIERS OF OPTICAL FIBER THE SPECIALTY MATERIALS HOUSEWARES LAB SCIENCES AND TELECOMMUNICATIONS CONCERN WOULDN'T DISCLOSE TERMS THE DEAL IS SUBJECT TO APPROVAL OF EXPORT LICENSES BY THE US DEPARTMENT OF COMMERCE CORNING SAID IT EXPECTS TO SUPPLY HUNDREDS OF THOUSANDS OF KILOMETERS OF OPTICAL FIBER TO FOUR RUSSIAN CABLE MAKERS WHO WILL PAY IN US DOLLARS SEVKABEL CABLE PLANT ST PETERSBURG ELEKTROPROVOD CABLE PLANT MOSCOW AND PODOLSK AND MYTISHI CABLE PLANTS BOTH IN MOSCOW SUBURBS THE FIBER WOULD BE USED TO MAKE A CIVILIAN TELECOMMUNICATIONS SYSTEM COMPATIBLE WITH EUROPEAN NETWORKS RUSSIA ACCOUNTS FOR LESS THAN ONETENTH OF 1 OF THE 14 BILLION WORLDWIDE MARKET FOR THE HAIRTHIN FIBER WHICH CAN TRANSMIT VOICE COMPUTER AND VIDEO DATA BUT THAT DEMAND IS EXPECTED TO RISE IN COMING YEARS AS RUSSIA REVAMPS ITS TELEPHONE SYSTEM WHICH IS COMPARABLE TO THE US PHONE SYSTEM OF THE 1930S SAID ELI NOAM A DIRECTOR OF COLUMBIA UNIVERSITY'S BUSINESS SCHOOL'S INSTITUTE FOR TELEINFORMATION THE POTENTIAL MARKET IS HUGE SAID JOHN N KESSLER PRESIDENT OF OPTICALFIBER CONSULTANCY KMI CORP NEWPORT RI MR KESSLER NOTES RUSSIA HAS MORE TELEPHONES THAN ANY OTHER COUNTRY IN EUROPE THE FIBER WOULD BE SUPPLIED FROM CORNING'S WILMINGTON DEL PLANT THE ALL RUSSIAN SCIENTIFIC INSTITUTE A GOVERNMENT AND INDUSTRY ASSOCIATION THAT REPRESENTS THE CABLE MAKERS WILL LATER CONSIDER MAKING THE FIBER IN RUSSIA USING CORNING'S PROPRIETARY TECHNOLOGY CORNING SAID 9306110007 930611 AIRBUS STRIKES AT MCDONNELL OVER SUBSIDIES CONSORTIUM SAYS THE FIRM IS BREAKING TRADE PACT US ASKS WIDER PLAN BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL PARIS AIRBUS INDUSTRIE MANAGING DIRECTOR JEAN PIERSON LASHED OUT AT MCDONNELL DOUGLAS CORP IN A THINLY VEILED ACCUSATION THAT THE US COMPANY IS VIOLATING A TRADE PACT ON AIRCRAFT SUBSIDIES MEANWHILE US COMMERCE SECRETARY RONALD H BROWN SAID THE US WANTS THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO ADOPT THE USEUROPEAN COMMUNITY ACCORD ON A GLOBAL BASIS AND IS HOPING IN THOSE TALKS TO REDUCE FURTHER THE AMOUNT OF DIRECT SUBSIDIES GOVERNMENTS MAY GIVE MANUFACTURERS BUT THERE APPEARED TO BE NO IMMEDIATE LIKELIHOOD THAT THE US WOULD SEEK TO REOPEN TALKS WITH THE EC ON THE AIRCRAFT SUBSIDY ISSUE MR PIERSON SAID AT A NEWS CONFERENCE AT THE OPENING OF THE PARIS AIR SHOW THAT IT IS BECOMING CLEARER AND CLEARER THAT THE US DOES NOT ACCEPT THIS AGREEMENT AND ADDED THAT A SINGLE COMPANY WAS AT THE ROOT OF HIS CONCERN BECAUSE OF STATE AID ON MILITARY PROJECTS ALTHOUGH MR PIERSON DIDN'T NAME MCDONNELL DOUGLAS DIRECTLY HE IDENTIFIED THE COMPANY IN QUESTION AS BEING LOCATED IN THE SOUTHWEST OF THE US CLOSE TO THE PACIFIC OCEAN MCDONNELL DOUGLAS'S DOUGLAS AIRCRAFT CO UNIT IS LOCATED IN LONG BEACH CALIF SEPARATELY MR PIERSON ANNOUNCED THE FORMAL LAUNCH OF THE 130SEAT A319 JETLINER THE LONGANTICIPATED DECISION COMES DESPITE THE CONSORTIUM'S HAVING ORDERS FOR ONLY SIX A319S WHICH WILL COMPETE WITH SMALLER VERSIONS OF BOEING CO'S 737 AND THE MCDONNELL DOUGLAS MD80 BUT THE A319'S LAUNCH WAS OVERSHADOWED BY MR PIERSON'S ATTACK ON MCDONNELL DOUGLAS HE SAID HE SUSPECTED THE COMPANY OF RECEIVING SOCALLED INDIRECT SUBSIDIES GOVERNMENT AID FOR MILITARY WORK APPLICABLE IN CIVIL AEROSPACE THAT ARE IN EXCESS OF LIMITS IMPOSED BY A TRADE AGREEMENT BETWEEN THE US AND THE EUROPEAN COMMUNITY LAST JULY THE TWO SIDES SIGNED A DEAL THAT LIMITS INDIRECT SUBSIDIES TO 4 OF A COMPANY'S TURNOVER AND DIRECT AID TO 30 OF THE COST OF THE PROJECT IN QUESTION WE HAVE TO BE SURE THEY ARE FULFILLING THE AGREEMENT MR PIERSON SAID IN AN INTERVIEW FOLLOWING THE NEWS CONFERENCE WE HAVE DOUBTS SOME FEARS SO WE HAVE RAISED THE QUESTION AND WE LOOK FOR AN ANSWER HE DECLINED TO ELABORATE ON WHAT PROMPTED THESE FEARS NOTING ONLY THAT THE CONSORTIUM HAD GAINED SOME INFORMATION HOWEVER HIS CLAIM APPEARED TO BE BASED ON THE ASSUMPTION THAT SINCE MCDONNELL DOUGLAS' COMMERICAL AIRCRAFT ACTIVITY HAS SUFFERED DURING THE RECESSION THE AMOUNT OF INDIRECT AID THE COMPANY RECEIVES MUST ALSO FALL TO MATCH THE PROPORTIONS IN THE PACT IF THE MARKET IS DOWN THE INDIRECT SUPPORT HAS TO FALL MR PIERSON SAID MCDONNELL DOUGLAS FLATLY REBUFFED MR PIERSON'S STATEMENT COMPANY OFFICIALS SAID THEY SUPPORT THE AGREEMENT AND COMPLY FULLY WITH OF ITS TERMS WALTER J ORLOWSKI DOUGLAS AIRCRAFT VICE PRESIDENT FOR MARKETING AND BUSINESS DEVELOPMENT SAID THE GOALS OF THE TRADE PACT ARE NOBLE AND CORRECT AND STRESSED THAT HIS COMPANY RECEIVES NO SUBSIDIES BECAUSE THE AGREEMENT AFFECTS ONLY NEW AIRCRAFT DEVELOPMENT THE SOLE MCDONNELL DOUGLAS PLANE THAT COULD FALL UNDER ITS TERMS IS THE 150SEAT MD90 ON DISPLAY AT THE AIR SHOW HERE BUT NOT DUE TO GO INTO SERVICE UNTIL LATE NEXT YEAR BUT MR ORLOWSKI SAID ANY ACCUSATION THAT THE MD90 PROGRAM FAILS TO MEET THE PACT'S TERMS IS OFF THE MARK I HAVE NO KNOWLEDGE OF ANY SUBSIDIES EITHER DIRECT OR INDIRECT THAT GO INTO THAT AIRPLANE HE SAID THE COMPANIES WILL PROBABLY HAVE A CHANCE TO DISCUSS THE ISSUE AT A PLANNED MEETING BETWEEN PRESS OFFICIALS OF AIRBUS MCDONNELL DOUGLAS AND BOEING THE THREE MAJOR AIRCRAFT ENGINE COMPANIES ROLLSROYCE PLC GENERAL ELECTRIC CO AND UNITED TECHNOLOGIES CORP'S'S PRATT & WHITNEY UNIT ARE ALSO EXPECTED TO TAKE PART IN THE MEETING SINCE THE MID1980S THE ISSUE OF GOVERNMENT AID FOR THE COMMERCIAL AIRCRAFT SECTOR HAS BEEN STRONGLY CONTESTED BETWEEN THE US AND THE EC OFTEN THREATENING TO ERUPT IN A TRADE WAR THE US SAYS AIRBUS BENEFITED FROM GOVERNMENT AID TOTALING ABOUT 26 BILLION IN DIRECT SUBSIDIES WHILE THE EC COUNTERED BY ACCUSING US MANUFACTURERS OF RECEIVING 41 BILLION IN INDIRECT AID AIRBUS' FOUR PARTNERS ARE BRITISH AEROSPACE PLC AEROSPATIALE SA OF FRANCE DAIMLERBENZ AG'S DEUTSCHE AEROSPACE UNIT AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN LAST YEAR'S AGREEMENT APPEARED TO SETTLE THE ISSUE BUT IT HAS COME UNDER REPEATED ATTACK PRESIDENT CLINTON RAISED THE ISSUE OF AIRCRAFT SUBSIDIES IN A TELEVISED TOWN MEETING AT A BOEING PLANT IN SEATTLE AS HAVE SEVERAL US CONGRESSIONAL LEADERS AND FEDERAL AGENCIES 9306110004 930611 ECONOMY LATEST SURVEY MIXED ON FIRMS' SPENDING PLANS BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE BULK OF AMERICAN BUSINESS IS MAINTAINING CAPITALSPENDING PLANS FOR THIS YEAR BUT MANUFACTURERS ARE TRIMMING THEIR PLANS ACCORDING TO A NEW COMMERCE DEPARTMENT SURVEY BUT MANUFACTURERS WHICH HAD BEEN PLANNING A 54 INCREASE NOW SAY THEY EXPECT TO SPEND ONLY 25 MORE THAN THEY DID LAST YEAR THE TEXTILE INDUSTRY FOR INSTANCE SAID IT NOW PLANS TO SPEND 1 LESS THAN IT DID LAST YEAR THREE MONTHS EARLIER IT WAS PROJECTING AN 8 INCREASE STEEL AND AUTO COMPANIES ALSO HAVE TRIMMED SPENDING PLANS STILL THE PROJECTED INCREASE IS FAR BETTER THAN THE 49 DECLINE REPORTED FOR 1992 MANUFACTURERS ACCOUNT FOR ABOUT A THIRD OF ALL PLANT AND EQUIPMENT EXPENDITURES NORMALLY RISING CAPACITY UTILIZATION RATES COMBINED WITH LOWER LONGTERM CAPITAL COSTS AND VISIONS OF THREE OR FOUR YEARS OF SOLID GROWTH WOULD CALL FORTH NEW EQUIPMENT AND CONSTRUCTION ORDERS SAID DRI/MCGRAW HILL A FORECASTING FIRM IN LEXINGTON MASS BUT GROWTH IN ORDERS FOR CAPITAL GOODS HAS BEEN WEAKER THAN NORMAL AND MAY WITHER FURTHER DEPENDING ON WASHINGTON'S POLICY GYRATIONS JUST WHEN IT IS NEEDED MORE COMMERCE SECRETARY RONALD BROWN BLAMED THE SOUR ATTITUDE OF MANUFACTURERS ON UNCERTAINTY OVER THE FATE OF PRESIDENT CLINTON'S ECONOMIC PLAN THIS IS INDICATIVE OF A WAITANDSEE SENTIMENT AS CONGRESS CONSIDERS THE CLINTON BUDGET HE SAID WHEN THE EARLIER SURVEY WAS CONDUCTED MR CLINTON'S INVESTMENT TAX CREDIT WAS STILL ON THE TABLE IT ISN'T ANY LONGER AFTER ADJUSTING FOR ANTICIPATED CHANGES IN PRICES AND QUALITY IMPROVEMENTS THE DEPARTMENT SAID COMPANIES EXPECT TO INCREASE CAPITAL SPENDING 91 THIS YEAR SUBSTANTIALLY MORE THAN THE PREVIOUSLY REPORTED 82 EXPECTATIONS FOR PRICE CHANGES HAVE BEEN ALTERED IN PART BECAUSE COMPUTERS OFFER MORE POWER FOR LESS MONEY THE GOVERNMENT SAYS THE INFLATIONADJUSTED PRICE OF CAPITAL GOODS IS ACTUALLY FALLING IN ALL US COMPANIES EXPECTED TO SPEND 58112 BILLION ON PLANT AND EQUIPMENT THIS YEAR OVERALL CAPITAL SPENDING IN THE FIRST QUARTER TURNED OUT TO BE 12 LOWER THAN ANTICIPATED IN THE SURVEY PUBLISHED IN MARCH THE DEPARTMENT NOTED 9306110003 930611 VANCE SEES PROGRESS IN DISCUSSIONS ON UNIT OF OLYMPIA & YORK NEW YORK FORMER SECRETARY OF STATE CYRUS VANCE WHO WAS APPOINTED EXAMINER TO OLYMPIA & YORK DEVELOPMENTS LTD'S US UNIT REPORTED HE WAS MAKING PROGRESS IN NEGOTIATIONS TO RESOLVE A DISPUTE THAT IS THREATENING TO SCUTTLE THE SUBSIDIARY'S DEBT RESTRUCTURING WE HAVE MADE GOOD PROGRESS SAID LILLIAN E KRAEMER SPEAKING ON BEHALF OF MR VANCE I HAVE NO REASON TO BELIEVE THAT WE WILL NOT HAVE A COMPLETE RESOLUTION OF THE ISSUE THE US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK ASSIGNED MR VANCE THE TASK OF BROKERING A PEACE BETWEEN THE CREDITORS AND EQUITY HOLDERS OF THE SUBSIDIARY OLYMPIA & YORK COS USA IN THE DISPUTE OVER THE COMPOSITION OF A NEW BOARD O&Y USA HAS BEEN WITHOUT A BOARD SINCE MARCH WHEN ITS TORONTO PARENT OLYMPIA & YORK DEVELOPMENTS EMERGED FROM CANADIAN BANKRUPTCYCOURT PROTECTION MR VANCE WAS ASKED TO MAKE A FURTHER PROGRESS REPORT TO THE COURT NEXT FRIDAY HE ISSUED A STATEMENT ASKING THE NEGOTIATING PARTIES TO REFRAIN FROM COMMENTING PUBLICLY ON THE PROGRESS OF DELIBERATIONS WE ARE CLOSE TO A CONSENSUAL AGREEMENT ON THE RELATIONSHIP BETWEEN THE NEW O&Y USA BOARD AND THE CANADIAN ADMINISTRATOR TO OLYMPIA & YORK DEVELOPMENTS WHICH HOLDS THE EQUITY OF THE US UNIT SAID SUSAN POWER JOHNSTON ATTORNEY FOR THE CANADIAN ADMINISTRATOR THE ADMINISTRATOR IS PREPARED TO MAKE CHANGES THAT WE THINK WILL BE SATISFACTORY TO ALL PARTIES LAWYERS FOR O&Y USA CREDITORS AGREED THAT THE PARTIES HAVE MOVED CLOSER TO A CONSENSUS AGREEMENT A RESOLUTION OF THE CORPORATE GOVERNANCE ISSUE WOULD ALLOW O&Y USA NEW YORK'S BIGGEST COMMERCIAL LANDLORD TO RESUME NEGOTIATIONS WITH ITS CREDITORS TO RESTRUCTURE 53 BILLION IN DEBT 9306110002 930611 WHAT'S NEWS BUSINESS AND FINANCE COLUMBIA HOSPITAL AND GALEN HEALTH CARE PLAN TO MERGE IN A 32 BILLION STOCK SWAP THAT WOULD CREATE ONE OF THE NATION'S LARGEST HEALTHCARE PROVIDERS THE NEW COMPANY WILL OWN 99 HOSPITALS IN 19 STATES AND TWO FOREIGN COUNTRIES THE DEAL COMES AMID POLITICAL PRESSURE MOUNTING ON HEALTHCARE COMPANIES TO CUT COSTS NEW YORK TIMES CO AGREED TO BUY AFFILIATED PUBLICATIONS THE PARENT OF THE BOSTON GLOBE FOR 107 BILLION IN CASH AND STOCK EXPANDING ITS DOMINANCE IN NORTHEASTERN NEWSPAPERS THE TRANSACTION IS BELIEVED TO BE THE BIGGEST US NEWSPAPER ACQUISITION OPEC AGREED TO FREEZE OIL PRODUCTION QUOTAS FOR THE THIRD QUARTER WHILE PROMISING KUWAIT A MODERATE RISE IN ITS ALLOTMENT BUT KUWAIT REJECTED THE QUOTA AND SAID IT WOULD BEGIN INCREASING ITS OUTPUT NEXT MONTH TO THE LEVEL IT HAD SOUGHT CRUDE FUTURES FELL 36 CENTS A BARREL TO 1928 ON THE NEWS DEMOCRATS ON THE SENATE FINANCE COMMITTEE SCALED BACK BOTH A PROPOSED TAX INCREASE ON TRANSPORTATION FUELS AND CUTS IN FEDERAL HEALTH PROGRAMS AS THEY CONTINUED TO HAGGLE OVER A DEFICITCUTTING PLAN THE SENATORS WANT A FUELTAX RISE BELOW THE 75 CENTS A GALLON CLINTON PROPOSED MINNESOTA MINING'S STOCK PLUNGED 10 OR 86 TO 10575 AFTER THE COMPANY SAID SECONDQUARTER PROFIT WILL FALL SHORT OF EXPECTATIONS DUE TO SLOWING US GROWTH THE NEWS RAISES A WARNING FLAG BECAUSE 3M IS OFTEN VIEWED AS AN ECONOMIC BAROMETER STOCKS FELL AS THE 3M REPORT PROMPTED INVESTORS TO DUMP SHARES OF ECONOMICALLY SENSITIVE COMPANIES BONDS CREPT HIGHER AND THE DOLLAR SLID TO ANOTHER RECORD LOW AGAINST THE YEN THE DOW JONES INDUSTRIAL AVERAGE TUMBLED 2021 POINTS TO 349172 THE ADMINISTRATION PLANS TO INCLUDE AT LEAST FIVE US BUSINESS EXECUTIVES IN THE OPENING ROUND OF TALKS AIMED AT OPENING JAPAN'S MARKETS IN EFFORTS TO PRESENT A UNITED FRONT CHASE MANHATTAN SOLD NEARLY 650 MILLION IN COMMON STOCK 100 MILLION LESS THAN THE BANKING COMPANY INITIALLY EXPECTED AMID AN UNCERTAIN ENVIRONMENT FOR BANK STOCKS CHASE'S SHARES ROSE 25 CENTS TO 2950 SALOMON AGREED TO PAY AS MUCH AS 67 MILLION TO DISPOSE OF A CLASSACTION LAWSUIT ARISING OUT OF ITS TREASURYAUCTION BIDDING SCANDAL IN 1991 COMPANIES EXPECT TO INCREASE THEIR PLANT AND EQUIPMENT SPENDING 64 THIS YEAR THE LATEST SURVEY SHOWS SLIGHTLY LESS THAN THE 66 INCREASE THEY PROJECTED THREE MONTHS EARLIER BUT MANUFACTURERS WHICH HAD BEEN PLANNING A 54 INCREASE NOW SAY THEY EXPECT TO SPEND ONLY 25 MORE CHRYSLER'S VICE PRESIDENT FOR DESIGN THOMAS GALE WAS GIVEN ADDITIONAL RESPONSIBILITY FOR GROWING INTERNATIONAL OPERATIONS APPARENTLY TO GROOM HIM FOR A BIGGER ROLE AN OMBUDSMAN FOR BANKS WILL BE APPOINTED TO PROVIDE A NEW CHANNEL FOR CHALLENGING REGULATORY JUDGMENTS THAT BANKS CONSIDER TOO HARSH THE COMPTROLLER OF THE CURRENCY SAID EXECUTIVES OF FRANCE'S MACHINES BULL AND DUTCH PHILIPS ELECTRONICS WERE ARRESTED ON CORRUPTION CHARGES LINKED TO ITALY'S BRIBERY SCANDALS MERCK DEVELOPED A HUMAN GROWTH HORMONE DRUG THAT MAY SOMEDAY COMPETE AGAINST BIGSELLING INJECTABLE FORMS BY GENENTECH AND LILLY MERCK IS ALSO SEEKING AN ORAL VERSION THAT WOULD BE SIMPLER TO ADMINISTER TOKYO STOCK PRICES FELL FOR A FOURTH CONSECUTIVE SESSION THURSDAY IN EXTREMELY THIN TRADING THE NIKKEI INDEX LOST 8192 POINTS TO 2049332 SHARE PRICES IN LONDON ALSO DROPPED BONDS LEHMAN BROTHERS TREASURY INDEX 513893 UP 1072 COMMODITIES OIL 1928 A BARREL OFF 36 CENTS DOW JONES FUTURES INDEX 12056 OFF 047 SPOT INDEX 11993 OFF 001 DOLLAR 10610 YEN OFF 035 16303 MARKS OFF 00047 9306110001 930611 MARKETING & MEDIA HOME SHOPPING POSTS 36 DROP IN EARNINGS FOR ITS THIRD QUARTER ST PETERSBURG FLA HOME SHOPPING NETWORK INC REPORTED A 36 DROP IN EARNINGS ON LOWER SALES FOR ITS FISCAL THIRD QUARTER CITING EARLY RETIREMENT OF DEBT AND THE ABSENCE OF INCOME FROM TWO SPUNOFF SUBSIDIARIES HOME SHOPPING WHICH HAS BEEN OVERSHADOWED BY ALLEGATIONS OF FINANCIAL IMPROPRIETIES RECENTLY POSTED NET INCOME OF 58 MILLION OR SEVEN CENTS A SHARE FOR THE QUARTER ENDED MAY 31 DOWN FROM 9 MILLION OR 10 CENTS A SHARE A YEAR EARLIER REVENUE FELL 35 TO 2602 MILLION FROM 2693 MILLION IN THE PAST FOUR MONTHS NEWLY NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER GERRY HOGAN HAS BEEN BEEN LEADING A NEW STAFF TO BOOST SLUGGISH PERFORMANCE AT THE COMPANY WHICH HAS BEEN ROCKED BY ALLEGATIONS OF FINANCIAL SCANDAL REVOLVING AROUND CHAIRMAN ROY SPEER AND SOME FORMER EXECUTIVES MR HOGAN SAID THE NEXT SEVERAL QUARTERS WILL REFLECT HIS COMMITMENT TO REBUILDING THE COMPANY WITH A NEW MERCHANDISING STRATEGY AND RENEWING HOME SHOPPING'S VITALITY THE QUARTER INCLUDED AN EXTRAORDINARY LOSS OF 400000 FROM THE EARLY RETIREMENT OF 169 MILLION OF THE COMPANY'S 55 CONVERTIBLE SUBORDINATED DEBENTURES THE TELEVISIONSHOPPING CONCERN ALSO SAID THAT REVENUE FOR THE PERIOD LAST YEAR INCLUDED 62 MILLION FROM THE PRECISION SYSTEMS INC AND SILVER KING COMMUNICATIONS INC UNITS WHICH WERE SPUN OFF RECENTLY HOME SHOPPING ALSO SAID THAT OPTIONS ON ABOUT TWO MILLION SHARES HELD BY CABLE SYSTEM OPERATORS WERE EXERCISED DURING AND AFTER THE THIRD QUARTER HOME SHOPPING RAISED 13 MILLION FROM THE OPTION EXERCISES HOME SHOPPING HAD AN AVERAGE 921 MILLION SHARES OUTSTANDING DURING THE THIRD QUARTER 9306110177 930512 STREETS ARE MURDER BUT THE TUBE IS SAFE COLOMBIA TAMES TV OUT RAMBO AND THE ATEAM IN PLACIDO DOMINGO HITS IN A COMA LOTS OF VIEWERS BY JOSE DE CORDOBA STAFF REPORTER OF THE WALL STREET JOURNAL BOGOTA COLOMBIA TIRED OF BEING BOMBED ON THE STREETS BLOWN OUT OF THE SKY TORTURED KIDNAPPED AND ASSASSINATED IN WARZONE NUMBERS EVERY YEAR COLOMBIANS ARE CAMPAIGNING TO ELIMINATE VIOLENCE FROM TELEVISION BLAMING THE LIKES OF RAMBO FOR CONTRIBUTING TO THE COUNTRY'S HIGH LEVEL OF MAYHEM MAJOR BUSINESS AND POLITICAL FIGURES HAVE ORGANIZED WHAT HAS TURNED OUT TO BE A POPULAR CRUSADE TO PURGE TV OF EXCESSIVE VIOLENCE AND SEX IN ORDER TO THROW A LITTLE COLD WATER ON THE COUNTRY'S VIOLENT PASSIONS VIOLENCE ON TELEVISION IS LIKE GASOLINE SAYS SEN GABRIEL MELO WHO RECENTLY CONDUCTED A STUDY CONCLUDING THAT WEEKEND TV VIEWERS WATCH AN AVERAGE OF ONE ACT OF VIOLENCE EVERY TWO MINUTES WE SHOULD BE TRYING TO PUT OUT THE FIRE INSTEAD OF THROWING GASOLINE ON IT IN REAL LIFE COLOMBIANS MURDER ONE ANOTHER AT A BLOODCURDLING RATE OF 78 PER 100000 PEOPLE PER YEAR ABOUT EIGHT TIMES AS HIGH AS IN THE US LAST YEAR 28179 COLOMBIANS DIED VIOLENTLY JUST A FEW LESS THAN IN 1991 A RECORD YEAR EIGHTYSIX PERCENT OF THE MURDERS WERE UNSOLVED ACCORDING TO ONE ACADEMIC STUDY ASIDE FROM CRIMES OF PASSION KNOWN HERE POETICALLY AS AFFAIRS OF SKIRT COLOMBIANS KILL EACH OTHER FOR A WIDE ARRAY OF REASONS GUERRILLAS AMBUSH SOLDIERS AND VICEVERSA RIGHTWING DEATH SQUADS KILL LEFTWING GUERRILLA SYMPATHIZERS GUERRILLAS KILL EXGUERRILLAS DRUG DEALERS KILL EACH OTHER AND ASSASSINATE JUDGES AND POLICEMEN OCCASIONALLY THEY CARRY OUT A MAGNICIDE AS THE KILLING OF VIPS IS KNOWN HERE AND SET OFF BOMBS TARGETING THE GENERAL CITIZENRY ENOUGH IS ENOUGH REASONS CARLOS DELGADO THE STOCKY PRESIDENT OF ANDA AN ORGANIZATION OF ALMOST ALL OF COLOMBIA'S ADVERTISERS AFTER BEING VICTIMIZED BY GUERRILLAS NARCOTRAFFICKERS AND OTHER ASSORTED CRIMINALS SAYS MR DELGADO COLOMBIANS SHOULDN'T HAVE TO PUT UP WITH THE VIOLENCE OF THE RAMBO MOVIES OR THE SEX OF FILMS LIKE 9 1/2 WEEKS IN NOVEMBER MR DELGADO PERSUADED HIS MEMBERSHIP NOT TO ADVERTISE IN PROGRAMS DEEMED EXCEEDINGLY VIOLENT OR SEXUAL SINCE HE BEGAN HIS CAMPAIGN MR DELGADO HAS GOTTEN A FLOOD OF LETTERS EXPRESSING SUPPORT ONE POLL IN EL ESPECTADOR A LEADING DAILY SAID 80 OF THE PUBLIC DOESN'T WANT PROGRAMS WITH EXCESSIVE VIOLENCE AND SEX AS THE HEAD OF A FAMILY DROWNING IN THIS SEA OF SOCIAL DECOMPOSITION I APPLAUD YOUR CAMPAIGN WROTE FRANCISCO PEREZ IN A TYPICAL LETTER IT'S A CATHARSIS SAYS ALVARO CAMACHO A SOCIOLOGIST AT THE NATIONAL UNIVERSITY PEOPLE ARE SO FRUSTRATED WITH THEIR INABILITY TO DO ANYTHING ABOUT COLOMBIA'S VIOLENCE HE SAYS THAT CLEANING UP TV SERVES AS AN EMOTIONAL SUBSTITUTE INDEED VIOLENCE IS SO ENDEMIC HERE THAT COLOMBIAN UNIVERSITIES HAVE MADE IT AN ACADEMIC SPECIALTY VIOLENCE PROFESSIONALS SUCH AS MR CAMACHO ARE KNOWN AS VIOLENTOLOGOS RATHER THAN SNEERING AT THE ANTITV VIOLENCE CAMPAIGN SOME VIOLENTOLOGOS FIND MERIT IN IT THERE ARE A LOT OF TELEVISION SHOWS AND FILMS SUCH AS THE TERMINATOR' WHOSE THEME IS THAT OF PRIVATE JUSTICE SAYS EDUARDO PIZARRO ANOTHER VIOLENTOLOGO AT THE NATIONAL UNIVERSITY PRIVATE JUSTICE IS A PROBLEM IN COLOMBIA FIVE YEARS AGO SAYS MR PIZARRO THE GOVERNMENT SAID THERE WERE 125 PARAMILITARY GROUPS OR DEATH SQUADS ACTIVE IN COLOMBIA MOST OF THE GROUPS WERE ALLIANCES OF MILITARY MEN LANDOWNERS AND DRUG TRAFFICKERS WHO JOINED FORCES TO KILL GUERRILLA SYMPATHIZERS ALMOST ALL THESE GROUPS HAD NAMES DERIVED FROM US FILMS AND TV SHOWS SUCH AS RAMBO THE TERMINATORS OR THE ATEAM IN SWITZERLAND SUCH A SHOW WOULDN'T DO ANY DAMAGE SAYS MR PIZARRO WHOSE BROTHER CARLOS A FORMER GUERRILLA WAS ONE OF FOUR PRESIDENTIAL CANDIDATES ASSASSINATED DURING THE COURSE OF THE 1990 ELECTION IN COLOMBIA UNFORTUNATELY IT COULD HAVE A LOT OF DAMAGE FOR COLOMBIAN TV EXECUTIVES THE CONTROVERSY HAS BECOME A BIG HEADACHE HAVING AGREED TO MORE STRINGENT SELFPOLICING THEY WERE JUST COMING TO GRIPS WITH MR DELGADO'S CAMPAIGN THEN IN LATE MARCH AFFAIRS TOOK AN UNEXPECTED TURN A BARRANQUILLA WIDOW CONVINCED A JUDGE THAT HER THREE ADOLESCENT CHILDREN WERE BEING PERVERTED BY TELEVISION THE JUDGE GAVE THE GOVERNMENT AGENCY THAT REGULATES TV AIR TIME 48 HOURS TO CLEAN IT UP THE WIDOW DEISY PORTO DE VARGAS TOLD REPORTERS THAT HER SON IMITATING A TV CHARACTER WHO OFTEN DEFUSES BOMBS IN THE USPRODUCED SHOW MACGYVER WAS STARTING TO TAKE APART HER APPLIANCES SHE WORRIED THAT THINGS COULD ONLY GET WORSE WHEN SHE SAW A VENEZUELAN SOAP OPERA IN WHICH A MOTHER THREW HER DAUGHTER DOWN THE STAIRS AFTER THE DAUGHTER REFUSED TO GET AN ABORTION THE JUDGE'S DECISION SENT FRENZIED TV EXECUTIVES IN SEARCH OF INNOCUOUS PROGRAMMING WE ARE READY WITH A LOT OF PRETTY BLAND STUFF SAYS MAURICIO CALLE IN CHARGE OF PRODUCTION AT RCI ONE OF THE COUNTRY'S PRINCIPAL TV PROGRAMMING COMPANIES MR CALLE IS STANDING BY WITH A SHOW CALLED FLYING DOCTORS ABOUT CANADIAN MEDICS WHO TRAVEL AROUND THE FROZEN NORTH HELPING PEOPLE AND HE'S READYING A LOT OF CONCERTS CONCERTS OF ALL TYPES PLACIDO DOMINGO OPERAS THAT KIND OF STUFF IN THE MEANTIME THE GOVERNMENT AGREED TO KEEP SHOWS THAT HAVE SCENES OF SEX AND VIOLENCE NOT FIT FOR MINORS OFF THE AIR DURING FAMILY VIEWING HOURS WHICH STRETCH UNTIL 10 PM ON MONDAY AN APPEALS COURT UPHELD THE JUDGE'S DECISION WHICH MOST LIKELY WILL NOW BE REVIEWED BY COLOMBIA'S CONSTITUTIONAL COURT UNTIL THEN TV EXECUTIVES WILL BE REQUIRED TO SUBMIT THEIR DAILY PROGRAMMING TO GOVERNMENT OFFICIALS 72 HOURS IN ADVANCE PROGRAMMERS ARE TO PUT IT MILDLY UPSET THEY SAY MAKING TELEVISION A SCAPEGOAT FOR THE COUNTRY'S DEEPLY ENTRENCHED VIOLENCE DOESN'T MAKE SENSE IT'S LIKE SELLING YOUR SOFA SO THAT YOUR WIFE WON'T COMMIT ADULTERY SAYS SAULO ARBOLEDA THE PRESIDENT OF THE TV PROGRAMMERS' ASSOCIATION MR CALLE THE TV PRODUCTION CHIEF THINKS IT'S ALL PRETTY SILLY AFTER ALL HE SAYS COLOMBIA WAS VIOLENT BEFORE TELEVISION ARRIVED HERE IN 1954 INDEED VIOLENCE IS AS MUCH A PART OF COLOMBIAN HISTORY AS AJIACO THE NATIONAL CHICKENANDPOTATO STEW SPANISH CONQUISTADORS TAMED THE LAND WITH SWORD AND FIRE SLAUGHTERING MOST OF THE CHIBCHA INDIANS IN THE PROCESS IN THE FIRST 100 YEARS OF INDEPENDENCE AFTER 1810 THE COUNTRY FOUGHT THREE FOREIGN AND 20 CIVIL WARS AND PUT DOWN 89 DOMESTIC INSURRECTIONS SAYS SEN JUAN GUILLERMO ANGEL IN 1946 COLOMBIA ENTERED A PROLONGED PERIOD OF UNDECLARED CIVIL WAR KNOWN AS LA VIOLENCIA IN WHICH MEMBERS OF THE TWO MAIN PARTIES THE CONSERVATIVES AND THE LIBERALS KILLED EACH OTHER WITH GUSTO FOR MOST COUNTRIES ONE CIVIL WAR IS SUFFICIENT SAYS SEN ANGEL BUT NOT COLOMBIA WE ARE IN A PERMANENT STATE OF WAR WITH INTERMITTENT TRUCES COULD IT BE THAT COLOMBIA JUST LOVES VIOLENCE FERNANDO GOMEZ AGUDELO THE VENERABLE FOUNDER OF COLOMBIAN TELEVISION PONDERS THIS AT A COCKTAIL PARTY A CULTURED MAN MR GOMEZ HATES THE KUNG FU MOVIES HE PROGRAMMED FOR THE SUNDAY AFTERNOON SLOT SO WHEN THE ADVERTISERS' GROUP STARTED PRESSURING HE SAYS HE CHANGED THE LINEUP TO QUALITY MOVIES SUCH AS KRAMER VS KRAMER AND ORDINARY PEOPLE RATINGS PROMPTLY FELL 50 IT'S A COUNTRY THAT LIVES VIOLENCE EVERY DAY IN THE NEWS SAYS MR GOMEZ AND WHAT IT WANTS TO SEE IS MORE VIOLENCE IT DOESN'T GET TIRED OF VIOLENCE SEE RELATED LETTER LETTERS TO THE EDITOR DIRTY MOVIES AND ROCK DON'T CAUSE VIOLENCE WSJ JUNE 11 1993 9305120028 YY93 MM06 9306110155 930521 YOUR MONEY MATTERS WEEKEND REPORT INSURANCE AGENTS FIND PROFIT IN ESTATETAX FEAR BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL PALM BEACH FLA HIS VOICE BOOMING WITH PASSION HIS FISTS RAISED IN ANGER AT DISBELIEVERS BARRY KAYE EXHORTS HIS AFFLUENT AUDIENCE WITH THE FERVOR OF A REVIVALIST YOU'RE WORTH A FORTUNE YOU MADE A FORTUNE LET ME SAVE THAT FORTUNE HE IMPLORES THE CROWD GATHERED IN A BALLROOM AT THE OPULENT RESORT THE BREAKERS WEALTHY FAMILIES HE WARNS TOO OFTEN FIND THEIR WORTH SHARPLY ERODED BY THE FEDERAL ESTATE TAX DUE AT DEATH UNLESS THAT IS THEY SEE THE LIGHT THE RICH MR KAYE TELLS HIS RAPT LISTENERS CAN TRIUMPH CAN KEEP THEIR DYNASTY GOING THROUGH THE WONDERS OF LIFE INSURANCE THE 65YEAROLD INSURANCESELLING POWERHOUSE FROM LOS ANGELES WILL DELIVER ESSENTIALLY THE SAME PITCH TO AT LEAST 60 SEMINARS THIS YEAR SUPPLY A LITTLE INFORMATION ABOUT YOURSELF YOUR FAMILY AND YOUR NET WORTH AND A PROPOSAL FOR WHAT MAY BE MILLIONS OF DOLLARS OF LIFE INSURANCE TO PAY ESTATE TAXES WILL ARRIVE AT YOUR DOOR FEDERAL ESTATE TAX CAN INDEED BE A HEAVY BURDEN ON A SMALL BUT GROWING MINORITY OF US FAMILIES THE LEVY WITH RATES THAT CLIMB STEEPLY FROM 37 TO 50 APPLIES TO ALL SUMS ABOVE 600000 THAT ARE LEFT TO PEOPLE OTHER THAN A SPOUSE THE ESTATE TAX CAN BE THE FINAL STRAW THAT FORCES THE SALE OF A FAMILY BUSINESS OR FARM BUT THE TAX IS ALSO THE ENGINE DRIVING A LUCRATIVE ESTATE PLANNING INDUSTRY OF INSURANCE AGENTS ATTORNEYS ACCOUNTANTS AND OTHERS WHO OFFER TO EASE THE BITE INSURANCE SELLERS SUCH AS MR KAYE CAN COLLECT MORE THAN 100000 IN COMMISSIONS ON A SINGLE BIG SALE IT'S LIKE WINNING THE LOTTERY SAYS GLENN S DAILY A NEW YORK INSURANCE CONSULTANT EVEN SOME PEOPLE WHO SELL POLICIES ADMIT THAT CONSUMERS CAN GET TRAMPLED IN THE INSURANCESELLING STAMPEDE USING INSURANCE TO PAY THE TAX DUE AT DEATH IS EXTREMELY APPROPRIATE EXTREMELY LEGITIMATE BUT OFTEN MISREPRESENTED SAYS MIAMI FINANCIAL PLANNER HAROLD R EVENSKY ADDS CHICAGO AGENT TED S BERNSTEIN IT'S BEING USED AS A PANACEA FOR ALL ESTATEPLANNING PROBLEMS AND IT'S NOT THESE DAYS THOUGH CONCERN THAT PRESIDENT CLINTON AND CONGRESS WILL RAISE THE ESTATE TAX TO NARROW THE DEFICIT OR PAY FOR HEALTHCARE PROGRAMS HAS ONLY ADDED TO THE INSURANCEMARKETING FRENZY MANY INSURANCE SELLERS POINT TO A 1992 CONGRESSIONAL PROPOSAL THAT WOULD HAVE LEVIED TAX ON ESTATES AS SMALL AS 200000 THE COMING ESTATETAX STORM WILL RAVAGE PEOPLE'S ESTATES UNLESS THEY PREPARE NOW DECLARES DAVID T PHILLIPS A CHANDLER ARIZ AGENT IN A 10PAGE SPECIAL REPORT TO CLIENTS AND PROSPECTS A KEY SUGGESTION GIVE 600000 TO A SPECIAL KIND OF TRUST THAT THEN BUYS A MULTIMILLIONDOLLAR INSURANCE POLICY TO PAY ESTATE TAXES LATER ON IN TWO PALM BEACH SEMINARS SPEAKING FOR 2 1/2 HOURS AT A TIME WITHOUT NOTES MR KAYE HOLDS LISTENERS LARGELY WITH HIS SHEER INTENSITY HE PRESENTS HIMSELF AS ONE OF THEM I'M A MILLIONAIRE AND YOU ARE TOO HE HOLDS UP BUNDLES OF DOLLAR BILLS AS PROPS AND OFFERS A STREAM OF EXAMPLES HIS BASIC MESSAGE IS SIMPLE PEOPLE CAN PAY A POTENTIALLY DEVASTATING ESTATETAX BILL FOR JUST PENNIES ON THE DOLLAR BY MAKING A ONETIME PAYMENT OF SAY 500000 FOR AN INSURANCE POLICY THAT WILL PAY 5 MILLION AT DEATH IN MR KAYE'S WORDS THAT'S A 90 DISCOUNT OR A 10TO1 RETURN HOW MUCH COULD YOU DISLIKE YOUR KIDS AND GRANDKIDS HE ASKS WHY WOULD YOU LEAVE YOUR KIDS 500000 WHEN YOU COULD LEAVE THEM 5 MILLION BUT THOSE SEEMING BARGAINS HAVE MORE MARKETING SIZZLE THAN SUBSTANCE INSURERS SET THEIR CHARGES FIGURING THEY WILL HAVE THOSE PREMIUM DOLLARS TO INVEST OVER POLICYHOLDERS' LIFE EXPECTANCIES AND THE BUYERS FORFEIT THE OPPORTUNITY TO INVEST THAT MONEY OVER THE SAME PERIOD OF YEARS WHICH THEY COULD HAVE USED TO BUILD THEIR ESTATES EVEN FURTHER MOREOVER MANY OF MR KAYE'S EXAMPLES USE SECONDTODIE POLICIES THAT PAY A DEATH BENEFIT ONLY WHEN THE SECOND OF TWO PEOPLE DIES THAT DESIGN IS USEFUL FOR ESTATETAX USE BUT THOSE POLICIES ARE ALSO AVAILABLE AT THE MOST EYECATCHING DISCOUNTS BECAUSE INSURERS KNOW THAT STATISTICALLY TWO PEOPLE HAVE A LONGER LIFE EXPECTANCY TOGETHER THAN EITHER HAS ALONE THE IDEA THAT YOU ARE BUYING SOME SORT OF A SUPER ASSET BY BUYING LIFE INSURANCE JUST ISN'T CORRECT SAYS PETER C KATT A WEST BLOOMFIELD MICH INSURANCE CONSULTANT ON AVERAGE THE INSURANCE COMPANIES CANNOT GIVE YOU BACK MORE THAN THEY CAN EARN ON WHAT YOU GIVE THEM MR KAYE SAYS HIS TALK OF HUGE DISCOUNTS IS NOT BOGUS BECAUSE THE BENEFICIARIES GET THE FULL DEATH BENEFIT EVEN IF THE INSURED PERSON DIES IMMEDIATELY YOU DON'T HAVE ANY IDEA IF YOU WILL STILL BE ALIVE TOMORROW MR KAYE GRIMLY DECLARES NO ONE ATTENDING A BARRY KAYE SEMINAR COULD MISTAKE THE FACT HE'S IN THE BUSINESS OF SELLING INSURANCE BUT MANY OTHER AGENTS WORKING THE ESTATETAX MARKET APPEAR LOATH TO ADMIT THAT'S WHAT THEY DO CONSIDER FOR INSTANCE MR PHILLIPS THE CHANDLER ARIZ AGENT AND A SELFDESCRIBED ESTATEPLANNING EXPERT MR PHILLIPS' SPECIAL REPORT THE COMING ESTATETAX STORM DOESN'T INDICATE THAT HE SELLS INSURANCE THE REPORT SAYS MR PHILLIPS IS PRESIDENT OF ESTATE PLANNING SPECIALISTS INC A NATIONAL INDEPENDENT FIRM ESTABLISHED TO PROTECT THE WEALTH OF AMERICANS FROM UNNECESSARY PROBATE ESTATE TAXATION AND LEGAL FEES READERS ALSO ARE TOLD THAT THE FIRM OFFERS AN IMPARTIAL ESTATE ANALYSIS SERVICE BASED ON FINANCIAL INFORMATION SUBMITTED BY EACH BUYER AND FOR THE SEEMINGLY MODEST PRICE OF 69 OTHER COMPANY MATERIALS SAY BUYERS CAN HAVE THAT ANALYSIS DELIVERED AND EXPLAINED BY A QUALIFIED ESTATE PLANNING SPECIALIST IN THEIR LOCAL AREA THAT 69 BUYS A REPORT IN A FANCY PADDED LOOSELEAF BINDER THAT RAVES AT LENGTH ABOUT THE DISCOUNTED DOLLARPLAN TO PAY ESTATE TAXESAND THAT RECOMMENDS RECIPIENTS EMPLOY ESTATE PLANNING SPECIALISTS TO PROVIDE THE INSURANCE COVERAGE THE SECTION DUBBED ESTATE LIQUIDITY FORMS HOLDS APPLICATIONS FOR COVERAGE FROM SUGGESTED INSURERS AND WHO ARE THOSE ESTATE PLANNING SPECIALISTS WHO CAN DELIVER AND EXPLAIN THE REPORT MR PHILLIPS SAYS THEY ARE A NETWORK OF 90 AGENTS WHO HAVE PAID 1000 EACH TO PARTICIPATE AND WHO GET 60 OF ANY RESULTING COMMISSIONS ESTATE PLANNING SPECIALISTS HAS A BRILLIANT MARKETING CONCEPT SAYS TEANECK NJ TAX ATTORNEY MARTIN M SHENKMAN THESE PEOPLE ARE HAVING YOU PAY MONEY FOR THEM TO GET YOU AS A PROSPECT MR PHILLIPS 44 SAYS HE IS NOT TRYING TO CONCEAL THE FACT THAT HE'S AN AGENT YOU MAY INTERPRET THAT WE ARE TRYING TO HIDE THAT HONESTLY WE ARE NOT HE SAYS WHILE THE ESTATE ANALYSIS SERVICE IS DEFINITELY A MEANS TO AN END SELLING INSURANCE MR PHILLIPS SAYS HE IS ALSO ON A PERSONAL CRUSADE TO EDUCATE AFFLUENT PEOPLE WHO HAVE NEGLECTED TO PLAN FOR THEIR ESTATES BUT MR SHENKMAN AND SOME OTHER ADVISERS SAY THERE IS A FUNDAMENTAL PROBLEM WITH INSURANCE SELLERS WHO PRESENT THEMSELVES AS ESTATE PLANNERS THEY SAY COMMISSIONPAID SELLERS TEND TO GIVE SHORT SHRIFT TO A HOST OF TECHNIQUES THAT CAN REDUCE PEOPLE'S TAXABLE ESTATES AND THUS THEIR ESTATE TAX BILLS TECHNIQUES THAT GENERALLY SHOULD BE CONSIDERED BEFORE BUYING INSURANCE TO PAY THE REMAINING TAX BILL AN AFFLUENT COUPLE FOR INSTANCE MAY BE ABLE TO REDUCE THEIR TAXABLE ESTATE BY 1 MILLION OVER A PERIOD OF FIVE YEARS SIMPLY BY MAKING ANNUAL GIFTS TO CHILDREN AND GRANDCHILDREN A HUSBAND AND WIFE CAN ANNUALLY GIVE 20000 TO EACH OF AN UNLIMITED NUMBER OF PEOPLE WITHOUT ANY TAX GIVING AWAY MINORITY INTERESTS IN A FAMILY BUSINESS OR FARM CAN ENCOURAGE PARTICIPATION BY THE NEXT GENERATION AND REMOVE ASSETS FROM THE PARENTS' ESTATE BEFORE THOSE HOLDINGS APPRECIATE FURTHER YOUR TAXES CAN BE REDUCED AT LEAST 50 IF PROPER PLANNING IS DONE SAYS AVERY E NEUMARK A PARTNER AND SMALLBUSINESS SPECIALIST AT THE WEBER LIPSHIE & CO ACCOUNTING FIRM IN NEW YORK SOME PEOPLE SAY BUYING INSURANCE TO PAY ESTATE TAXES HAS GIVEN THEM CONSIDERABLE PEACE OF MIND PARTICULARLY WHEN MUCH OF THE FAMILY'S WEALTH IS TIED UP IN ILLIQUID ASSETS SUCH AS A BUSINESS OR LAND IT'S A SIMPLE WAY TO TAKE CARE OF A FUTURE PROBLEM SAYS HENRY WERTHEIMER A 65YEAROLD NEW JERSEY RESIDENT WITH REALESTATE OPERATIONS BUT SOME OTHERS ARE FAR FROM HAPPY I THINK THE INSURANCE FIELD IS A MINEFIELD GRIPES WILLIAM M CUSTER A MONEY MANAGER IN COLUMBUS OHIO MR CUSTER SAYS A POLICY SOLD TO HIS 72YEAROLD MOTHER THREE YEARS AGO WAS SPECIFICALLY SAID TO BE COMPETITIVE WITH TAXFREE MUNICIPAL BONDS BUT A RECENT ANALYSIS FOR MR CUSTER BY MR KATT THE MICHIGAN CONSULTANT PUT THE RETURN AT ONLY 4 A YEAR ASSUMING THE WOMAN LIVES TO A REASONABLE LIFE EXPECTANCY A WELLCHOSEN POLICY SHOULD PROVIDE MORE DOLLARS AT DEATH THAN MONEY INVESTED IN MUNICIPAL BONDS MR KATT SAYS OTHER POLICYHOLDERS HAVE FOUND THEY WILL HAVE TO PAY PREMIUMS FOR MORE YEARS THAN EXPECTED BECAUSE DECLINING INTEREST RATES HAVE REDUCED INSURERS' INVESTMENT EARNINGS A VIRGINIA COUPLE IN THEIR 50S HAVE SEEN THE PROJECTED COST OF THEIR 10 MILLION JOINT POLICY CLIMB TO 16 MILLION FROM 700000 A MILLION DOLLARS MORE THAN WE STARTED WITH IT JUST ISN'T RIGHT THE IRATE HUSBAND FUMES MEANWHILE INSURANCE SELLERS SEE CONTINUING OPPORTUNITY IN THE PROMOTION OF LIFE INSURANCE TO PAY ESTATE TAXES IT'S NO SECRET THAT THERE'S MONEY BIG MONEY IN LIFE INSURANCE FOR ESTATE CONSERVATION TRUMPETS AN AD FOR AN 895 SALES SYSTEM THAT INSTRUCTS AGENTS ON HOW TO MARKET INSURANCE BY HOSTING ESTATEPLANNING SEMINARS SEE RELATED LETTER LETTER TO THE EDITOR ESTATE TAXES THREATEN A LIFETIME OF WORK WSJ JUNE 11 1993 9305210166 YY93 MM06 9306110006 930506 DOE IS TAKING STEPS FOR OSHA TO COVER NUCLEAR LABS WORKERS WASHINGTON THE ENERGY DEPARTMENT IS TAKING STEPS TO END THE FACT THAT WORKERS AT NUCLEAR WEAPONS LABORATORIES ARE EXEMPT FROM LABOR DEPARTMENT RULES AT A NEWS CONFERENCE ENERGY SECRETARY HAZEL O'LEARY SAID THE DEPARTMENT WOULD SOON BEGIN NEGOTIATIONS WITH THE LABOR DEPARTMENT'S OCCUPATIONAL SAFETY AND HEALTH ADMINISTRATION THE TALKS WILL AIM AT BRINGING UNDER OSHA'S AUTHORITY THE EMPLOYEES OF PRIVATESECTOR CONTRACTORS THAT OPERATE NUCLEAR WEAPONS LABS FOR THE ENERGY DEPARTMENT ALTHOUGH NUCLEAR WEAPONS LABS ARE KNOWN TO BE AMONG THE MOST HAZARDOUS WORK SITES IN THE NATION BECAUSE OF THE PREVALENCE OF RADIOACTIVE AND OTHER WASTE WORKERS AT THOSE PLANTS HAVE BEEN EXEMPT FROM OSHA SINCE ITS CREATION IN 1970 THE EMPLOYEES ARE EXEMPTED ON THE GROUNDS THAT THEIR SAFETY AND HEALTH IS ALREADY REGULATED BY ANOTHER FEDERAL AGENCY IN THIS CASE THE ENERGY DEPARTMENT SIMILAR EXEMPTIONS EXIST FOR CERTAIN WORKERS UNDER CERTAIN CONDITIONS IN THE MINING AND RAILROAD INDUSTRIES AMONG OTHERS NOLAN HANCOCK LEGISLATIVE DIRECTOR OF THE OIL CHEMICAL AND ATOMIC WORKERS UNION WHICH REPRESENTS EMPLOYEES AT NUCLEAR WEAPONS LABS SAID HE WAS VERY PLEASED WITH THE MOVE HE SAID THE UNION HAS LONG TAKEN THE POSITION THAT ALLOWING THE ENERGY DEPARTMENT TO POLICE HEALTH AND SAFETY FOR WORKERS AT ITS OWN FACILITIES IS A CONFLICT OF INTEREST AT THE NEWS CONFERENCE MS O'LEARY SAID NEITHER THE LABOR DEPARTMENT NOR THE ENERGY DEPARTMENT WAS READY TO PLACE THE WORKERS UNDER OSHA OVERSIGHT IMMEDIATELY BUT IN THE LONG TERM WE ACCEPT IT AND WE DESIRE IT SEE RELATED LETTER LETTERS TO THE EDITOR WEAPON DESIGN LABS' HAZARDS EXAGGERATED WSJ JUNE 11 1993 9305060065 YY93 MM06 9306110039 930419 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST DUALPURPOSE FUNDS WEDNESDAY'S CLOSE N/ANOT AVAILABLE OR NOT APPLICABLE VCONVERTED AT COMMERCIAL RAND RATE ZNOT TRADING ON ANY EXCHANGE 9306110036 930122 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9306110021 930128 QUARTERLY EARNINGS SURPRISES COMPANIES LISTED BELOW REPORTED QUARTERLY PROFIT SUBSTANTIALLY DIFFERENT FROM THE AVERAGE OF ANALYSTS' ESTIMATES THE COMPANIES ARE FOLLOWED BY AT LEAST THREE ANALYSTS RESULTS IN PARENTHESES ARE LOSSES THE PERCENT DIFFERENCE COMPARES ACTUAL PROFIT WITH THE 30DAY ESTIMATE WHERE AT LEAST THREE ANALYSTS HAVE ISSUES FORECASTS IN THE PAST 30 DAYS OTHERWISE ACTUAL PROFIT IS COMPARED WITH THE 120DAY ESTIMATE 9306100162 930610 ENTERPRISE PRIVATE PRISON MARKET ATTRACTS MORE AND MORE FIRMS BUT PROBLEMS ARE INCREASING AND PROFITS REMAIN ELUSIVE FOR MANY BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL IT SOUNDS IMPROBABLE ALMOST NOBODY MAKES MUCH MONEY BUT EVERYBODY CLAMORS FOR A PIECE OF THE ACTION THIS SITUATION OCCURS OFTEN IN SMALL BUSINESS AS THE PROSPECT OF A GROWING REVENUE STREAM LURES ENTREPRENEURS TO A NEW FIELD IT IS CERTAINLY TRUE IN THE SPREADING PRIVATIZATION OF THE NATION'S CORRECTIONAL SYSTEM CASHSTRAPPED GOVERNMENTS ARE DOLING OUT A STEADY FLOW OF CONTRACTS IN HOPES THAT THE PRIVATE SECTOR WILL RUN OVERCROWDED CORRECTIONS FACILITIES FOR LESS MONEY BUT REPORTS OF PROBLEMS IN THE FIELD ARE GROWING AND MANY SMALL COMPANIES FIND IT TOUGH TO MAKE A SUBSTANTIAL PROFIT SO WHAT HAPPENS MORE COMPANIES THAN EVER ARE TRYING TO BREAK INTO THE FIELD PROBLEMS FACING THE INDUSTRY INCLUDE UNANTICIPATED DIFFICULTIES IN HANDLING A DIVERSE INMATE POPULATION AND IN KEEPING COSTS LOW THEIR EXPERIENCE SUGGESTS THAT ENTREPRENEURS ENTERING A GROWING INDUSTRY MUST LOOK BEYOND THE GLOW OF FAST REVENUES AND STUDY THE POTENTIAL BOTTOM LINE MANY OF THE COMPANIES THAT GET INVOLVED IN THIS BUSINESS LOOK AT THE REVENUE STREAM WITHOUT THINKING ABOUT WHAT PART OF THAT THEY GET TO KEEP SAYS CHARLES THOMAS A CRIMINOLOGIST AT THE UNIVERSITY OF FLORIDA IN GAINESVILLE NOBODY TO DATE HAS GONE BELLY UP BUT THE ABILITY TO FINANCE DEVELOPMENT SIMPLY HASN'T BEEN THERE FOR MANY SMALL COMPANIES NONETHELESS PROF THOMAS SAYS THAT 18 COMPANIES NOW OPERATE CORRECTIONAL FACILITIES OR HAVE RECEIVED CONTRACTS TO DO SO SIX MORE ARE NEGOTIATING CONTRACTS AND SHOULD LAND THEM BY YEAR END HE ADDS THE 24 CONCERNS REPRESENT AN EIGHTFOLD INCREASE FROM THE NUMBER ONLY SEVEN YEARS AGO FINANCIAL RESULTS HAVEN'T BEEN ROSY FOR THE BIGGEST PLAYERS PRICOR INC A MURFREESBORO TENN CONCERN THAT WAS AN EARLY LEADER EXITED THE ADULT CORRECTIONS BUSINESS LAST YEAR AFTER SUCCESSIVE LOSSES CORRECTIONS CORP OF AMERICA IN NASHVILLE TENN HAS HAD LOSSES IN SEVEN OF THE PAST 10 YEARS YET IT IS THE INDUSTRY'S BIGGEST COMPANY AND NOW ONE OF THE MOST PROFITABLE SAYS PROF THOMAS CCA FOUNDED IN 1983 OWNS OR OPERATES 21 FACILITIES IN SIX STATES AND HAD REVENUE OF 902 MILLION IN 1992 UP FROM 678 MILLION IN 1991 INDIVIDUALS THAT INDEPENDENTLY MONITOR CCA'S PRISON CONTRACTS PRAISE THE COMPANY'S OPERATIONS BUT CCA DIDN'T BECOME PROFITABLE UNTIL 1989 AND HAD A LOSS AGAIN IN 1991 IN YEARS WHEN IT HAS BEEN PROFITABLE CCA HAS HAD PAINFULLY THIN MARGINS LAST YEAR IT HAD NET INCOME OF 25 MILLION A PROFIT MARGIN THAT BARELY CLIMBED ABOVE 25 ALONG WITH CCA WACKENHUT CORRECTIONS CORP ACCOUNTS FOR ABOUT HALF OF THE PRIVATE CORRECTIONS INDUSTRY WCC A DIVISION OF WACKENHUT CORP IN CORAL GABLES FLA SAYS ITS 12 CORRECTIONAL FACILITIES HAD REVENUE OF 62 MILLION FOR THE YEAR ENDED JAN 3 GEORGE ZOLEY WCC'S PRESIDENT SAYS THE DIVISION IS PROFITABLE BUT HE DECLINES TO DISCLOSE ITS PROFIT MARGINS INCREASED COMPETITION FROM NEWER ENTRANTS IS ONE FACTOR DEPRESSING PROFITS FOR SOME PRIVATE CORRECTION CONCERNS TO BE MORE COMPETITIVE WE'VE HAD TO REDUCE OUR PROFIT MARGIN SAYS RON RUSSELL A VICE PRESIDENT OF MANAGEMENT & TRAINING CORP A CORRECTIONS CONCERN IN OGDEN UTAH HE DECLINES TO DISCLOSE THE COMPANY'S MARGINS PROFITABILITY OR REVENUE THERE ARE DEEPER REASONS TOO INCLUDING THE COMPLEXITIES OF MANAGING A DIVERSE PRISON POPULATION AND THE STIFFNESS OF GOVERNMENT CONTRACT REQUIREMENTS PUBLIC AGENCIES USUALLY REQUIRE PRIVATE BIDS TO BE ABOUT 10 LESS THAN THE COSTS THEY INCURRED IN PREVIOUSLY OPERATING THE FACILITIES CORRECTIONS COMPANIES SAY THAT THESE AGENCIES DON'T ANALYZE THEIR OWN COSTS ADEQUATELY THE FIRMS SAY THIS CREATES AN INACCURATE ASSESSMENT OF THE TRUE EXPENSE OF RUNNING A PRISON FACILITY THE INDUSTRY'S ROUGH RIDE HAS LOWERED SOME OF THE GRAND EXPECTATIONS THAT FIRST GREETED THE PRIVATIZATION MOVEMENT I THINK PRIVATIZATION IS DOING WELL SAYS WILLIAM SANDBACH CHIEF EXECUTIVE OFFICER OF CONCEPTS INC A LOUISVILLE KY CORRECTIONS CONCERN BUT HE ADDS THAT HE SEES PRIVATE EFFORTS ONLY AS SUPPLEMENTS TO PUBLICLY RUN PRISONS INDEED THE PRIVATE CONCERNS' PROBLEMS EARNING GOOD RETURNS WHEN THEY MUST KEEP COSTS BELOW THOSE OF GOVERNMENT AGENCIES RAISES QUESTIONS ABOUT THEIR ABILITY TO BE A CHEAPER ALTERNATIVE NEVERTHELESS SOME PRIVATE OPERATORS BELIEVE THEY CAN INCREASE THEIR CURRENT 1 SHARE OF THE NATION'S 30 BILLION CORRECTIONAL INDUSTRY THEY EXPECT THAT PROPORTION TO GROW AS GOVERNMENTS SEARCH HARDER FOR WAYS TO PARE THEIR BUDGETS AND MANAGE A RECORD NUMBER OF PRISONERS AT THE END OF LAST YEAR FEDERAL AND STATE FACILITIES HOUSED 884000 INMATES UP FROM 330000 IN 1980 ACCORDING TO THE JUSTICE DEPARTMENT'S BUREAU OF JUSTICE STATISTICS THE INDUSTRY AS A WHOLE HAS BEEN DOING BETTER IN THE LAST COUPLE OF YEARS THAN EVER BEFORE SAYS DOCTOR CRANTS PRESIDENT OF CCA THE CONCERN REPORTED RECORD EARNINGS OF 933000 FOR THE FIRST QUARTER OF 1993 A BAROMETER OF WHERE MR CRANTS SAYS HIS COMPANY AND THE INDUSTRY ARE HEADED HE ADDS THAT CCA NOW IS FOCUSING ON NEW NICHES SUCH AS FOREIGN MARKETS CCA AND OTHER COMPANIES ALSO ARE TRYING TO IMPROVE THEIR PROFIT MARGINS BY SPECIALIZING IN INCARCERATING JUST ONE TYPE OF PRISONER MANY HAVE FOUND IT HARD TO SERVE A PRISON POPULATION MADE UP OF FOR EXAMPLE BOTH MEN WITH LOWSECURITY REQUIREMENTS AND WOMEN WITH HIGHSECURITY REQUIREMENTS NOTES MR RUSSELL IT'S A TOUGH BUSINESS TO BE IN 9306100161 930610 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION ARCADIAN PARTNERS LP AND ITS UNIT ARCADIAN PARTNERS FINANCE CORP AN EXCHANGE OFFER AND A SHELF REGISTRATION WITH RESPECT TO THE OUTSTANDING 340 MILLION AGGREGATE PRINCIPAL AMOUNT OF THEIR 10 3/4 SERIES A SENIOR NOTES DUE 2005 VIA 2005 CASCADE NATURAL GAS CORP AN OFFERING OF 500000 COMMON SHARES VIA EDWARD D JONES & CO AND RAGEN MCKENZIE INC CVD FINANCIAL CORP A SUBSIDIARY OF CONVERSION INDUSTRIES INC AN INITIAL OFFERING OF 575 MILLION UNITS GENERAL NUTRITION COS AN OFFERING OF 1350000 COMMON SHARES VIA MORGAN STANLEY & CO MAGMA COPPER CO AN OFFERING OF UP TO 200 MILLION OF DEBT SECURITIES PREFERRED STOCK COMMON STOCK AND WARRANTS STANDARD PRODUCTS CO AN OFFERING OF 1 MILLION COMMON SHARES VIA DONALDSON LUFKIN & JENRETTE SUMMIT TECHNOLOGY INC AN OFFERING OF ONE MILLION COMMON SHARES VIA BEAR STEARNS & CO AND PIPER JAFFRAY INC CVD FINANCIAL CORP A SUBSIDIARY OF CONVERSION INDUSTRIES INC OFFERED 575 MILLION OF COMMON SHARES IN AN INITIAL OFFERING AN ITEM YESTERDAY INCORRECTLY SAID THE COMPANY OFFERED 575 MILLION UNITS 9306100160 930610 WHO'S NEWS NOMURA SECURITIES CO NOMURA SECURITIES CO TOKYO TAKASHI TSUTSUI 43 YEARS OLD WAS NAMED PRESIDENT OF NOMURA INTERNATIONAL PLC LONDON THE LONDONBASED SUBSIDIARY OF JAPAN'S LARGEST SECURITIES COMPANY MR TSUTSUI WAS PREVIOUSLY DEPUTY PRESIDENT 9306100159 930610 AEL UNIT WINS SUBCONTRACT LANSDALE PA AEL INDUSTRIES INC A MAKER OF DEFENSE SYSTEMS SAID ITS AEL SYSTEMS INTERNATIONAL CORP UNIT WON A 142 MILLION SUBCONTRACT FROM LOCKHEED CANADA INC FOR ELECTRONIC SUPPORT AND TRAINING SYSTEMS THE PRIMARY CONTRACT WAS AWARDED TO THE UNIT OF LOCKHEED CORP BY THE CANADIAN DEPARTMENT OF NATIONAL DEFENCE THE SYSTEMS WILL PROVIDE TRAINING IN AIR MARITIME AND LAND SCENARIOS 9306100158 930610 INTERNATIONAL SWISS PRICES ROSE 01 IN MAY BERN SWITZERLAND SWITZERLAND'S NATIONAL CONSUMER PRICE INDEX ROSE 01 MONTH TO MONTH IN MAY AND 36 YEAR TO YEAR THE GOVERNMENT ANNOUNCED IN APRIL THE INDEX ROSE 03 MONTH TO MONTH AND 38 YEAR TO YEAR AND IN MAY 1992 THE INDEX INCREASED 03 AND 42 9306100157 930610 INTERNATIONAL IBERIA'S LOSSES NARROWED IN 1992 MADRID SPAIN'S STATEOWNED AIR CARRIER IBERIA SA SAID NET LOSSES AT THE PARENT COMPANY SHRANK MARGINALLY TO 3482 BILLION PESETAS 280 MILLION IN 1992 FROM 3589 BILLION PESETAS IN 1991 IBERIA SAID PARENT COMPANY OPERATING LOSSES NARROWED TO 1235 BILLION PESETAS IN 1992 FROM 1926 BILLION PESETAS IN 1991 TWO DEVALUATIONS OF THE PESETA IN 1992 CAUSED THE COMPANY EXCHANGERATE LOSSES OF 10 BILLION PESETAS IBERIA SAID 9306100156 930610 WHO'S NEWS LTV CORP LTV CORP CLEVELAND WILLIAM C ARMBRUSTER A MANAGING PARTNER WITH ERNST & YOUNG WAS APPOINTED VICE PRESIDENT AND CONTROLLER OF THIS STEELMAKER MR ARMBRUSTER 47 SUCCEEDS WILLIAM TWOMEY WHO RESIGNED LAST YEAR 9306100155 930610 WHO'S NEWS FUTURE NOW INC FUTURE NOW INC CINCINNATI DENNIS J SULLIVAN AN EXECUTIVE COUNSELOR WITH DAN PINGER PUBLIC RELATIONS AND A FORMER CHIEF FINANCIAL OFFICER OF CINCINNATI BELL INC WAS NAMED A DIRECTOR OF THIS COMPUTER CONCERN THE ELECTION OF MR SULLIVAN 61 YEARS OLD INCREASES THE BOARD'S SIZE TO EIGHT 9306100154 930610 WHO'S NEWS GIDDINGS & LEWIS INC GIDDINGS & LEWIS INC FOND DU LAC WIS PETER P DONIS RETIRED PRESIDENT AND CHIEF OPERATING OFFICER OF CATERPILLAR INC AND JAMES R UNDERKOFLER RETIRED CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF WPL HOLDINGS INC WERE NAMED DIRECTORS OF THIS SUPPLIER OF AUTOMATED MACHINING AND ASSEMBLY SYSTEMS EXPANDING THE SIZE OF THE BOARD TO 10 BOTH MEN HAD BEEN BOARD MEMBERS SINCE THE COMPANY WENT PUBLIC IN 1989 BUT RETIRED IN APRIL THEY AGREED TO RETURN FOLLOWING THE RECENT RESIGNATION OF CHAIRMAN AND CHIEF EXECUTIVE WILLIAM J FIFE 9306100153 930610 INTERNATIONAL BRAZILIAN PRICES ROSE 32 IN MAY RIO DE JANEIRO PRICES IN BRAZIL ROSE 32 IN MAY THE BIGGEST JUMP IN THREE YEARS THE PRIVATE GETULIO VARGAS FOUNDATION SAID WEDNESDAY THE FOUNDATION'S GENERAL PRICE INDEX SHOWED INFLATION WAS HIGHER LAST MONTH THAN IN APRIL WHEN PRICES ROSE 28 THE GENERAL PRICE INDEX MEASURES WHOLESALE PRICES CONSUMER PRICES AND CONSTRUCTION COSTS 9306100152 930610 POLITICS & POLICY PEOPLE TURN MORE SOUR ABOUT CLINTON IN POLL BUT THEY'RE WILLING TO FORGIVE BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON AMERICANS ARE TURNING MORE SOUR TOWARD PRESIDENT CLINTON THOUGH THEY ALSO SEEM PREPARED TO UPGRADE THEIR OPINION IF HE LEARNS FROM HIS EARLY MISTAKES A NEW WALL STREET JOURNAL/NBC NEWS POLL SHOWS DESPITE DOUBTS ABOUT HIS ECONOMIC PROGRAM AMERICANS APPEAR TO OFFER SIGNIFICANTLY MORE SUPPORT FOR MR CLINTON'S EMBATTLED ENERGY TAX THAN THE ALTERNATIVE PROPOSED BY FOES OF THE TAX AND OVERALL THEY STILL TEND TO THINK THEY DID THE RIGHT THING BY CHANGING TO MR CLINTON IN LAST YEAR'S ELECTION STILL THE PRESIDENT'S APPROVAL RATING HAS DROPPED SIGNIFICANTLY IN THE PAST TWO MONTHS JUST 41 OF THE 1502 ADULTS SURVEYED SAY THEY APPROVE OF THE JOB HE'S DOING DOWN FROM 52 IN AN APRIL JOURNAL/NBC POLL THE PERCENTAGE EXPRESSING DISAPPROVAL HAS CLIMBED TO 50 FROM 34 THE NEW SURVEY SUGGESTS THAT THE DROP IN MR CLINTON'S APPROVAL RATING STEMS LARGELY FROM GROWING DOUBTS ABOUT HIS ECONOMIC PLAN SOWN BY STEADY ASSERTIONS BY REPUBLICANS AND CONSERVATIVE DEMOCRATS THAT IT RELIES TOO MUCH ON TAXES AND TOO LITTLE ON SPENDING CUTS THE PERCENTAGE OF AMERICANS WHO SAY THEY FAVOR THE PRESIDENT'S ECONOMIC PLAN HAS DROPPED TO 39 FROM 50 IN APRIL JUST OVER HALF SAY THEY WANT CONGRESS TO CHANGE THE PLAN TO INCLUDE FEWER TAX INCREASES AND MORE SPENDING CUTS TO MEET MR CLINTON'S DEFICITREDUCTION TARGETS AND IN THE SUREST SIGN THAT CRITICS OF THE CLINTON ECONOMIC PLAN ARE GETTING THEIR MESSAGE ACROSS THE SHARE OF AMERICANS WHO SAY MR CLINTON IS A TAXANDSPEND BIGGOVERNMENT DEMOCRAT HAS GROWN TO 42 FROM 29 THREE MONTHS AGO THESE DOUBTS ABOUT CLINTONOMICS COME AT A TIME OF GROWING UNEASINESS ABOUT THE OVERALL DIRECTION OF THE COUNTRY IN THE NEW JOURNAL/NBC POLL WHICH WAS CONDUCTED FRIDAY THROUGH TUESDAY 27 SAY THE COUNTRY IS HEADED IN THE RIGHT DIRECTION THAT'S DOWN FROM 37 TWO MONTHS AGO YET THOSE PIECES OF BAD NEWS ARE PARTLY OFFSET BY TWO IMPORTANT POSITIVE SIGNS FOR THE PRESIDENT ONE SIGN IS THAT DESPITE AMERICANS' GENERAL COOLNESS TOWARD HIS OVERALL ECONOMIC PLAN BY A 68 TO 21 MARGIN THEY APPROVE A BROADBASED ENERGY TAX OVER THE ALTERNATIVE OF CUTTING MEDICARE AND MEDICAID AS WELL AS LIMITING SOCIAL SECURITY COSTOFLIVING INCREASES A PLAN THAT HAS BEEN PROPOSED BY SENATE FOES OF THE TAX THAT FINDING IS SIGNIFICANT FOR THE WHITE HOUSE AS IT TRIES TO RECAST THE ENERGY TAX PROPOSAL WITH THE PRESIDENT AGREEING THIS WEEK TO LOOK FOR AN ALTERNATIVE ENERGY TAX TO REPLACE HIS INITIAL PLAN TO TAX ENERGY SOURCES ON THEIR HEAT CONTENT AS MEASURED IN BRITISH THERMAL UNITS THE OTHER POSITIVE SIGN IS THAT AMERICANS STILL TEND TO THINK THAT SWITCHING TO MR CLINTON LAST FALL WAS THE RIGHT THING TO DO INDEED MANY AMERICANS STILL SEEM TO HOLD GOOD WILL FOR THE PRESIDENT WHEN ASKED WHETHER HIS PROBLEMS SO FAR ARE MAINLY PART OF THE LEARNING PROCESS ANY NEW PRESIDENT GOES THROUGH OR AN INDICATION THAT HE MAY NOT BE UP TO THE JOB 54 ATTRIBUTED THE MISSTEPS TO THE LEARNING PROCESS COMPARED WITH 39 WHO SAID THE EARLY MISCUES MAY INDICATE HE ISN'T UP TO THE JOB WHEN ASKED WHETHER MR CLINTON REPRESENTS A CHANGE FOR THE BETTER OR THE WORSE WHEN COMPARED WITH GEORGE BUSH'S HANDLING OF THE PRESIDENCY MORE THAN HALF 53 SAID A CHANGE FOR THE BETTER WHILE JUST 38 SAID FOR THE WORSE AND WHATEVER MR CLINTON'S TROUBLES WITH HIS ECONOMIC PLAN REPUBLICANS DON'T APPEAR TO BE GAINING MUCH OF AN ADVANTAGE FROM THEM ASKED WHO'S MORE SERIOUS ABOUT REDUCING THE DEFICIT MR CLINTON OR THE REPUBLICANS 47 CHOOSE MR CLINTON WHILE 33 CITE CONGRESSIONAL REPUBLICANS AND 60 SAY THEY THINK REPUBLICANS ARE OPPOSING MR CLINTON'S ECONOMIC PLAN FOR POLITICAL REASONS RATHER THAN TO OFFER A REALISTIC ALTERNATIVE THE SURVEY PROVIDES ONE OTHER ENCOURAGING SIGN FOR THE WHITE HOUSE HILLARY CLINTON'S APPROVAL RATINGS SEEM TO BE HOLDING UP SLIGHTLY BETTER THAN HER HUSBAND'S AMONG THOSE SURVEYED 47 EXPRESSED POSITIVE FEELINGS ABOUT MRS CLINTON COMPARED WITH 53 TWO MONTHS AGO 9306100151 930610 WHO'S NEWS ARTISOFT INC ARTISOFT INC TUCSON ARIZ WILLIAM C KEIPER PRESIDENT AND CHIEF EXECUTIVE WAS APPOINTED TO THE ADDITIONAL POST OF INTERIM CHAIRMAN MR KEIPER 42 YEARS OLD FILLS THE POST FOLLOWING THE FIRING OF C JOHN SCHOOF II LAST WEEK ARTISOFT DEVELOPS AND MAKES COMPUTER HARDWARE AND SOFTWARE FOR LOCAL AREA NETWORKS 9306100150 930610 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK MICHAEL JACOBS 41 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT OF THE SIMON & SCHUSTER TRADE DIVISION OF PARAMOUNT PUBLISHING A UNIT OF THIS MAJOR PUBLISHING AND ENTERTAINMENT CONCERN MR JACOBS WHOSE NEWLY CREATED POSITION IS EFFECTIVE JULY 6 HAD BEEN PRESIDENT OF THE NEW YORKBASED VIKING PENGUIN DIVISION OF BRITISH PUBLISHING CONCERN PEARSON PLC 9306100148 930610 WHO'S NEWS PACIFICORP PACIFICORP PORTLAND ORE WILLIAM J GLASGOW 46 YEARS OLD WAS NAMED CHIEF FINANCIAL OFFICER FILLING A LONGSTANDING VACANCY AT THIS ELECTRIC UTILITY HE CONTINUES AS SENIOR VICE PRESIDENT OF THE COMPANY AND AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF ITS WHOLLY OWNED SUBSIDIARY PACIFICORP FINANCIAL SERVICES 9306100147 930610 AGOURON STAKE OF 2 IS SOLD TO SYNTEX CORP SAN DIEGO AGOURON PHARMACEUTICALS INC SAID IT SOLD A 2 EQUITY STAKE TO SYNTEX CORP FOR ABOUT 3 MILLION AS PART OF AN AGREEMENT TO JOINTLY DEVELOP DRUGS FOR TREATMENT OF CANCER ARTHRITIS AND OTHER DISEASES THE SAN FRANCISCOBASED PHARMACEUTICAL GIANT PURCHASED 155844 NEWLY ISSUED AGOURON SHARES FOR 1925 EACH MORE THAN DOUBLE AGOURON'S MARKET PRICE AGOURON SHARES JUMPED 1 OR 12 YESTERDAY TO CLOSE AT 950 A SHARE IN NATIONAL OVERTHECOUNTER TRADING THE 1925ASHARE PRICE WAS THE SAME AMOUNT PAID BY OTHER SHAREHOLDERS IN THE COMPANY'S LAST STOCK SALE IN OCTOBER 1991 A SPOKESWOMAN SAID WE THINK IT REFLECTS AN APPROPRIATE VALUATION AND WE'RE GRATIFIED THAT SYNTEX APPARENTLY SHARES OUR VIEW SYNTEX ALSO AGREED TO PAY AGOURON A TOTAL OF 85 MILLION IN RESEARCH FUNDING OVER THREE YEARS WITH AN OPTION TO PAY AN ADDITIONAL 35 MILLION IN THE FOURTH YEAR MARKETING RIGHTS TO ANY DRUGS EVENTUALLY BROUGHT TO MARKET WILL BE DIVIDED BETWEEN THE COMPANIES BASED ON THE PRODUCTS' THERAPEUTIC APPLICATIONS AGOURON WILL HAVE THE RIGHTS TO ANY CANCER DRUGS AND SYNTEX WILL HAVE THE RIGHTS TO ANY ARTHRITIS DRUGS EACH COMPANY WILL PAY ROYALTIES TO THE OTHER FOR SALES IN THE OTHER'S THERAPEUTIC MARKET AGOURON IS DEVELOPING A VARIETY OF DRUGS TO TREAT CANCER AIDS AND OTHER DISEASES 9306100146 930610 WHO'S NEWS RAG SHOPS INC RAG SHOPS INC HAWTHORNE NJ DONALD G HUNT 49 YEARS OLD WAS ELECTED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS CRAFT AND FABRIC STORE CHAIN HE SUCCEEDS WARREN G MCCLURE 47 WHO RESIGNED TO PURSUE PERSONAL INTERESTS MR HUNT HAS BEEN VICE PRESIDENT OF OPERATIONS AND MERCHANDISING SINCE OCTOBER 1992 9306100145 930610 CENTRAL P&L TENDER OFFER DALLAS CENTRAL & SOUTH WEST CORP SAID ITS CENTRAL POWER & LIGHT CO UNIT IS INVITING HOLDERS OF TWO SERIES OF POLLUTION CONTROL REVENUE BONDS TO SUBMIT THEM TO THE COMPANY FOR PURCHASE AT PRICES DESIGNATED BY THE BONDHOLDERS THE TENDER OFFER IS BEING MADE TO HOLDERS OF 1392 MILLION OF 10 1/8 BONDS SERIES 1984 DUE OCT 15 2014 AND HOLDERS OF 817 MILLION OF 9 3/4 BONDS SERIES 1985A DUE JULY 1 2015 CENTRAL POWER & LIGHT HAS ESTABLISHED A MINIMUM OFFER OF 116494 PER 100 PRINCIPAL AMOUNT FOR THE SERIES 1984 BONDS AND 114103 PER 100 PRINCIPAL AMOUNT FOR THE SERIES 1985A BONDS THE MANAGER FOR THE TRANSACTION IS GOLDMAN SACHS & CO 9306100144 930610 DELTA TO MATCH FARE CUT ON BUSY CALIFORNIA ROUTE ATLANTA DELTA AIR LINES SAID IT WILL MATCH A 36 FARE CUT INITIATED TUESDAY BY USAIR GROUP INC'S USAIR UNIT ON THE BUSY LOS ANGELESSAN FRANCISCO ROUTE USAIR AND UAL CORP'S UNITED AIRLINES HAVE CUT THE ONEWAY UNRESTRICTED FARE TO 89 FROM 139 THE TWO ALSO ANNOUNCED A 49 ONEWAY WEEKEND FARE WHICH PRICE LEADER SOUTHWEST AIRLINES SAID IT WOULD MATCH BY CUTTING ITS WEEKEND PRICES BY 20 ON COMPETING ROUTES TO OAKLAND CALIF FROM LOS ANGELES BURBANK AND ONTARIO DELTA SAID IT WOULD MATCH THE WEEKEND FARE AS WELL ON ITS FIVE DAILY SERVICES BETWEEN LOS ANGELES AND SAN FRANCISCO BUT A SPOKESWOMAN SAID SHE WASN'T AWARE THAT DELTA WOULD MEET THE MILEAGE BONUSES AND ONTHEGROUND PERKS OFFERED BY USAIR AND UNITED IN CONNECTION WITH THE PROMOTION 9306100143 930610 ROAD TO PAY 10 MILLION IN 1981 CLASSACTION SUIT CHICAGO ILLINOIS CENTRAL RAILROAD SAID IT WILL PAY 10 MILLION TO SETTLE A 1981 CLASSACTION LAWSUIT ALLEGING THAT THE RAILROAD USED RACIALLY DISCRIMINATORY HIRING PRACTICES IN THE LATE 1970S DURING ITS TRACKREHABILITATION PROGRAM IN 1981 A CLASS OF BLACK PLAINTIFFS SOUGHT 18 MILLION ALLEGING THEY WERE DENIED EMPLOYMENT ON THE BASIS OF RACE IN ILLINOIS MISSOURI AND KENTUCKY THE US DISTRICT COURT FOR THE SOUTHERN DISTRICT OF ILLINOIS DECIDED IN FAVOR OF THE RAILROAD BUT THE DECISION WAS REVERSED ON THE PLANTIFFS' APPEAL THE CASE THE COMPANY SAID WAS REMANDED TO DETERMINE DAMAGES THE PLAINTIFFS AMENDED THE SUIT TO SEEK DAMAGES OF 450 MILLION IN 1992 THE DISTRICT COURT RULED THAT THE PLAINTIFFS WERE ENTITLED TO BACK PAY AND COMPENSATION FOR EMOTIONAL DISTRESS RULING OUT PUNITIVE DAMAGES AND OTHER COMPENSATORY DAMAGES IN AGREEING TO PAY THE 10 MILLION WHICH COVERS CLAIMS FOR BACK PAY DAMAGES INTEREST AND ATTORNEYS' FEES THE RAILROAD SAID IT IS CONFIDENT IT DIDN'T DISCRIMINATE ILLINOIS CENTRAL RAILROAD A UNIT OF ILLINOIS CENTRAL CORP OPERATES A 2700MILE FREIGHT RAILROAD BETWEEN CHICAGO AND THE GULF OF MEXICO 9306100142 930610 COMAIR HOLDINGS TRAFFIC IN MAY CINCINNATI COMAIR HOLDINGS INC SAID 211846 PASSENGERS BOARDED THE REGIONAL AIRLINE IN MAY UP 11 FROM A YEAR AGO COMAIR'S LOAD FACTOR LAST MONTH WAS 490 AN INCREASE OF 104 FROM 444 A YEAR AGO REVENUE PASSENGER MILES A MEASURE OF ONE PAYING PASSENGER FLOWN ONE MILE INCREASED 194 9306100141 930610 BUSINESS BRIEFS AMERICAN TELEPHONE & TELEGRAPH CO WILL NOW OFFER ITS INTERNAL BUSINESS TRANSLATION EXPERTISE TO OUTSIDE CUSTOMERS THROUGH ITS NEW OPERATING GROUP AT&T BUSINESS TRANSLATIONS ECC INTERNATIONAL CORP WON A 37 MILLION CONTRACT FROM THE ARMY TO PROVIDE M1A2 ABRAMS TANK VIDEODISC GUNNERY TRAINERS CULBRO CORP'S ELI WITT WHOLESALE DISTRIBUTION UNIT ACQUIRED TRINITY DISTRIBUTORS TERMS WEREN'T DISCLOSED ASHLAND OIL INC AGREED IN PRINCIPLE TO SELL ITS APACARIZONA INC HIGHWAY CONSTRUCTION BUSINESS TO PETER KIEWIT SONS' INC TERMS WEREN'T DISCLOSED CADE INDUSTRIES INC'S AUTOAIR UNIT WAS AWARDED TWO CONTRACTS VALUED AT 14 MILLION FOR ENGINE TEST CELL EQUIPMENT FROM RYDER AIRLINE SYSTEM AND AIR NEW ZEALAND 9306100140 930610 US SEEKS ALLIES' SUPPORT FOR ISOLATION OF TEHRAN LUXEMBOURG THE US URGED ITS EUROPEAN ALLIES TO JOIN AN EFFORT TO ECONOMICALLY ISOLATE IRAN TO PRESSURE IT INTO ENDING ITS ARMS BUILDUP AND SUPPORT OF TERRORISM AT A NEWS CONFERENCE FOLLOWING A MEETING HERE OF ALLIED FOREIGN MINISTERS SECRETARY OF STATE WARREN CHRISTOPHER SAID HE HAD PRESSED FOR A COLLECTIVE POLICY OF CONTAINMENT AGAINST TEHRAN A SENIOR US OFFICIAL ADDED LATER THAT SEVERAL FOREIGN MINISTERS PRIVATELY EXPRESSED INTEREST IN EXAMINING SUCH AN APPROACH THE OFFICIAL SAID ONE FOREIGN MINISTER CONCEDED THAT THE EUROPEAN POLICY OF TRYING TO USE COMMERCIAL LINKS TO MODERATE IRAN'S BEHAVIOR MIGHT NOT BE USEFUL ANYMORE BRINGING ALONG THE ALLIES WON'T BE EASY FORMER PRESIDENT BUSH TRIED UNSUCCESSFULLY LAST YEAR TO PERSUADE EUROPEAN NATIONS AND JAPAN TO HALT SALES OF ALL MILITARILY USEFUL EQUIPMENT AND TECHNOLOGY TO IRAN THE ALLIES WOULDN'T GO ALONG CLAIMING THAT THE BEST WAY TO CONTROL IRAN'S BEHAVIOR WOULD BE BY REDUCING ITS ISOLATION MR CHRISTOPHER IS COUNTING ON IRAN'S SHARPLY DETERIORATING ECONOMY TO HELP ACHIEVE A DIFFERENT OUTCOME THIS TIME AT YESTERDAY'S SESSION THE US AND ITS ALLIES AGREED TO SET UP A GROUP TO EXAMINE NEW INTELLIGENCE DATA ABOUT IRAN US OFFICIALS SAID THEY HOPE THE REVIEW WILL BE COMPLETED BY SEPTEMBER 9306100139 930610 ECONOMY FASTER HANDLING OF HIGHTECH AID BILLS URGED BY BOB DAVIS AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE US SHOULD ADOPT RULES TO EXPEDITE LEGISLATION AIDING HIGHTECHNOLOGY INDUSTRIES INVOLVED IN TRADE BATTLES THE BUSINESSBACKED COUNCIL ON COMPETITIVENESS RECOMMENDED A COUNCIL REPORT SAID THE US OFTEN ACTS TOO SLOWLY IN TRADE AND TECHNOLOGY TO BE DECISIVE THE PANEL CRITICIZED THE US FOR TAKING TOO LONG TO DECIDE WHETHER TO FIGHT EUROPE OVER AIRCRAFT SUBSIDIES AND JAPAN OVER SEMICONDUCTORS RAPID POLICY RESPONSE IS CRUCIAL PARTICULARLY FOR TECHNOLOGYINTENSIVE INDUSTRIES THE PANEL SAID PRIOR COUNCIL RECOMMENDATIONS HAVE INFLUENCED THE THINKING OF THE CLINTON ADMINISTRATION WHICH SHARES THE GROUP'S CONCERNS ABOUT US COMPETITIVENESS MUCH OF PRESIDENT CLINTON'S PLANS FOR NURTURING ADVANCED TECHNOLOGY ECHOES COUNCIL REPORTS UNDER THE NEW PLAN ENVISIONED BY THE COUNCIL ONCE THE PRESIDENT DETERMINED THAT AN INDUSTRIAL SECTOR WAS CRITICAL TO THE ECONOMY LEGISLATION TO AID THE INDUSTRY WOULD MOVE THROUGH CONGRESS ON A SOCALLED FASTTRACK BASIS UNDER FASTTRACK RULES CONGRESS AGREES TO CONSIDER LEGISLATION QUICKLY AND BINDS ITSELF TO VOTING YES OR NO ON LEGISLATION BUT NOT AMENDING IT FASTTRACK RULES ARE CRUCIAL FOR PASSING TRADE ACCORDS LAWMAKERS RELY ON THE RULES TO FEND OFF SPECIAL INTERESTS LOOKING TO MAKE CHANGES IN THE DEALS BUT CONGRESS HAS BEEN LOATH TO GRANT SUCH AUTHORITY IN OTHER SITUATIONS BECAUSE MANY LAWMAKERS VIEW THE PROCEDURE AS ANTIDEMOCRATIC AND AS AN INFRINGEMENT ON LEGISLATIVE PREROGATIVES SEPARATELY ANNE BINGAMAN THE ASSISTANT ATTORNEY GENERALDESIGNATE FOR ANTITRUST SAID THAT ANTITRUST LAWS SHOULD BE USED TO PROTECT THE AMERICAN PUBLIC FROM UNFAIR TRADING PRACTICES BY FOREIGN CONCERNS AMERICAN CONSUMERS NEED TO BE FREE FROM THE IMPACT OF FOREIGN CARTELS WORKING IN THIS MARKET SHE TOLD THE SENATE JUDICIARY COMMITTEE DURING HER CONFIRMATION HEARING MRS BINGAMAN INDICATED SHE GENERALLY OPPOSES GRANTING ANTITRUST EXEMPTIONS TO ALLOW COMPANIES TO BETTER COMPETE IN FOREIGN TRADE OR FOR ANY OTHER REASON PROPONENTS OF MAINTAINING AN EXEMPTION OR CREATING A NEW ONE BEAR A HEAVY BURDEN TO JUSTIFY IT SHE SAID THE COMPETITIVENESS COUNCIL AND HIGHTECH GROUPS HAVE OFTEN URGED SUCH EXEMPTIONS THE COUNCIL YESTERDAY ALSO SAID THAT THE US RELIES FAR TOO MUCH ON TRADE MEASURES TO ATTACK PROBLEMS OF DECLINING US COMPETITIVENESS THE GROUP ALSO URGED THE CLINTON ADMINISTRATION TO EXPAND ITS CONSULTATIONS WITH INDUSTRY AND LABOR ERIC GARFINKEL THE GROUP'S TRADE SPECIALIST SUGGESTED THAT THE WHITE HOUSES'S NATIONAL ECONOMIC COUNCIL ORGANIZE ADVISORY GROUPS TO HELP SET TRADE AND COMPETITIVENESS PRIORITIES THERE ARE NO PRIORITIES NOW HE SAID THE ADMINISTRATION NEGOTIATES WHERE THE POLITICAL PRESSURE IS GREATEST 9306100138 930610 WHO'S NEWS FOREST CITY ENTERPRISES INC FOREST CITY ENTERPRISES INC CLEVELAND SAMUEL H MILLER WAS NAMED CHAIRMAN OF THIS REAL ESTATE CONCERN SUCCEEDING MAX RATNER 85 YEARS OLD WHO BECOMES THE FOUNDER CHAIRMAN MR RATNER'S SON CHARLES A RATNER 51 WHO HAD BEEN AN EXECUTIVE VICE PRESIDENT WILL BECOME PRESIDENT SUCCEEDING ALBERT B RATNER AND CHIEF OPERATING OFFICER SUCCEEDING MR MILLER ALBERT RATNER 65 REMAINS CHIEF EXECUTIVE OFFICER AND WILL ASSUME THE ADDITIONAL POST OF VICE CHAIRMAN MR MILLER 71 WILL REMAIN TREASURER ALBERT RATNER IS A NEPHEW OF MAX RATNER 9306100137 930610 INTERNATIONAL OIL CONCERNS KAZAKHSTAN SIGN PACT ON EXPLORATION SPECIAL TO THE WALL STREET JOURNAL ATA KAZAKHSTAN A GROUP OF MULTINATIONAL OIL COMPANIES SIGNED AN AGREEMENT WITH KAZAKHSTAN TO BEGIN EXPLORATION OF A POTENTIALLY HUGE OIL FIELD IN THE CASPIAN SEA NORTH OF IRAN THE INTERNATIONAL CONSORTIUM IS MADE UP OF MOBIL CORP OF THE US ITALY'S AGIP SPA FRANCE'S TOTAL SA SHELL EXPLORATION BV OF THE NETHERLANDS A UNIT OF ROYAL DUTCH/SHELL GROUP BRITISH GAS PLC AN ALLIANCE BETWEEN BRITISH PETROLEUM PLC AND STATOIL AS OF NORWAY AND KAZAKHSTAN'S NEWLY FORMED OIL COMPANY KAZAKHSTANCASPISHELF OIL EXECUTIVES STRESSED THAT IT IS PREMATURE TO ESTIMATE THE FIELD'S POTENTIAL THIS IS JUST EXPLORATION SAID HK ACORD EXECUTIVE VICE PRESIDENT OF MOBIL'S EXPLORATION AND PRODUCING DIVISION IT'S VERY MUCH A LOOKSEE DEAL KADYR K BAIKENOV MINISTER OF ENERGY AND FUEL RESOURCES SAID THE INITIAL PERIOD FOR GEOLOGICAL SURVEYS AND ENVIRONMENTAL STUDIES WILL LAST ABOUT THREE YEARS AT AN EXPECTED COST OF 130 MILLION TO 150 MILLION PRODUCTION OF OIL IF FOUND IN COMMERCIAL QUANTITIES ISN'T EXPECTED UNTIL THE YEAR 2000 9306100136 930610 FINANCING BUSINESS KSWISS INC KSWISS INC CHATSWORTH CALIF OFFERED 13 MILLION CLASS A COMMON SHARES AT 2450 APIECE VIA GOLDMAN SACHS & CO AND MERRILL LYNCH PIERCE FENNER & SMITH INC OF THE SHARES 100000 ARE BEING SOLD BY THE ATHLETICSHOE COMPANY AND 12 MILLION BY A GROUP OF STOCKHOLDERS PROCEEDS FROM THE SALE OF THE COMPANY'S PORTION WILL BE USED TO PAY DOWN A REVOLVING CREDIT LINE AND FOR GENERAL CORPORATE PURPOSES 9306100135 930610 REVIEW & OUTLOOK EDITORIAL AN INDEPENDENT FED EVEN THE CLINTON ADMINISTRATION'S CRITICS HAVE TO HOPE THAT IT PULLS ITSELF TOGETHER TO PROVIDE THE SEMBLANCE OF A GOVERNMENT FOR THE NEXT THREE AND A HALF YEARS BUT IT IS NONE TOO EARLY FOR OTHER VITAL INSTITUTIONS TO DEMONSTRATE THAT THEY CAN CONTINUE TO FUNCTION WHATEVER THE CONFUSION IN THE WHITE HOUSE ABOVE ALL IT'S TIME FOR THE FEDERAL RESERVE TO AFFIRM ITS VAUNTED INDEPENDENCE THE EARLYWARNING BOARD ON INFLATION HAS BEEN LIGHTING UP AFTER ALL THE DOLLAR HAS BEEN SINKING TO NEW LOWS AGAINST THE YEN DESPITE INTERVENTION TO SUPPORT IT THE PRICE OF GOLD ASCENDED A STEEP SLOPE STARTING IN APRIL AND STILL HOVERS NOT FAR BELOW ITS HIGHS APRIL PRODUCER PRICES SOARED 06 FROM THE EARLIER MONTH A DISCONCERTING DEVELOPMENT EVEN IF TOMORROW'S MAY RELEASE IS MORE TEPID TWO FED GOVERNORS CAST DISSENTS IN FAVOR OF TIGHTENING AS EARLY AS MARCH AND IN MAY THE OPEN MARKET COMMITTEE REPORTEDLY PROVIDED CHAIRMAN GREENSPAN DISCRETION TO TIGHTEN THE TARGET FED FUNDS RATE WAS BRIEFLY PINCHED TO 35 WHICH STANCHED THE GOLD RISE BUT NOT THE FOREIGN EXCHANGE EROSION THE INFLATION SIGNALS MAY BE AN ABERRATION AS WHITE HOUSE ECONOMIC CHIEF ROBERT RUBIN SUGGESTED YESTERDAY BUT THAT IS WHAT WE ALWAYS HEAR MR RUBIN ALSO RUMINATED OVER WHY INFLATION SIGNS SHOULD APPEAR ON THE FINANCIAL SIDE OF THE ECONOMY WHILE THE REAL ECONOMY IS MAKING ONLY GRUDGING PROGRESS THE ANSWER SURELY IS THAT THE CLINTON ADMINISTRATION HAS WEIGHED DOWN THE REAL SIDE OF THE ECONOMY NEARLY AS MUCH AS IT'S HANDICAPPED DEMOCRATIC CANDIDATES IN TEXAS AND LOS ANGELES HOW CAN YOU GROW A BUSINESS LET ALONE AN ECONOMY IF YOU DON'T KNOW WHAT TAXES YOU'LL END UP PAYING EVEN ON INCOME YOU'RE EARNING RIGHT NOW NO GREAT VIGOR CAN BE EXPECTED UNLESS OR UNTIL THIS UNCERTAINTY IS RESOLVED IN FAVOR OF A TAX PROGRAM FAR MORE MODERATE THAN ANYTHING CURRENTLY ON THE TABLE IN THE NEGOTIATIONS BETWEEN THE ADMINISTRATION AND ITS SENATE ALLIES THE SHAKINESS IN GROWTH NEED NOT NECESSARILY REFLECT ITSELF IN INFLATION DEPENDING ON THE POLICIES OF THE FED IN THE 1970S WE SAW STAGFLATION SIMULTANEOUS INFLATION AND RECESSION AND IN THE 1980S WE SAW THE OPPOSITE FALLING INFLATION AS THE REAL ECONOMY PROSPERED EVEN AS CLINTON AND CO HASH FISCAL POLICY THE FED CAN CONTINUE TO DO ITS JOB ON MONETARY POLICY PROVIDED OF COURSE IT IS NOT CONSCRIPTED INTO TRYING TO COVER THE ADMINISTRATION'S FISCAL ERRORS ALL OF THE FED'S GOVERNORS WERE OF COURSE APPOINTED BY REPUBLICAN ADMINISTRATIONS BUT THERE IS NONETHELESS A PERCEPTION THAT IT HAS BEEN CHUMMY WITH CLINTON OFFICIALDOM WHILE IT'S HARD TO FAULT FED CHAIRMAN ALAN GREENSPAN FOR ACCEPTING HILLARY CLINTON'S INVITATION TO SIT WITH HER DURING THE PRESIDENT'S STATE OF THE UNION SPEECH THE SYMBOLISM STUCK THEN THERE WAS THE MATTER OF KIDGLOVES REGULATORY TREATMENT FOR PROBLEMS OF THE STEPHENS FINANCIAL EMPIRE IN ARKANSAS AN IMPORTANT SOURCE OF CLINTON CAMPAIGN FUNDING THE FED AND ITS CHAIRMAN DO NEED TO GET ALONG REASONABLY WELL WITH ANY INCUMBENT ADMINISTRATION AND WOULD NOT BE WISE TO GO OUT OF THEIR WAY TO MAKE TROUBLE EARLY IF ONLY IN RECOGNITION THAT THE TIME WOULD COME TO TIGHTEN MONEY OVER THE ADMINISTRATION'S OPPOSITION THE CURRENT MANIFEST WEAKNESS OF THE ADMINISTRATION THOUGH MAKES IT ALL THE MORE IMPORTANT FOR THE FED TO STEER ITS OWN COURSE AND TO MAKE THIS UNMISTAKABLY CLEAR TO THE MARKETS AND THE PUBLIC THE SYSTEM'S HAWK IN THE STEPHENS AFFAIR ST LOUIS FED PRESIDENT THOMAS MELZER HAS BEEN INTERVIEWED FOR THE OPENING ATOP THE NEW YORK FED WITHOUT DENIGRATING OTHER CANDIDATES MR MELZER'S ELEVATION WOULD BE THE CLEAREST POSSIBLE SIGNAL OF RECTITUDE ON THE REGULATORY FRONT NOT A BAD IDEA IN LIGHT OF LINGERING QUESTIONS OVER THE BCCI PURCHASE OF FIRST AMERICAN BANK IN WASHINGTON IN THE END THOUGH MORE THAN SYMBOLISM WILL BE NEEDED THE FED NEEDS TO GIVE THE MARKETS A SHOT ACROSS THE BOW SLOWING THE GROWTH OF MONEY ENOUGH TO EASE GOLD BACK TOWARD 350 AND FIRM THE DOLLAR AGAINST THE YEN SHORTTERM INTEREST RATES WOULD BLIP AND THE ADMINISTRATION MIGHT GO BALLISTIC BUT MUCH OF THE POINT IS TO SHOW THAT THE FED WILL STEER ITS OWN COURSE EVEN IF THE WHITE HOUSE IMPLODES RATHER THAN RECOVERS THE INFLATION JITTERS ARE STILL AT AN EARLY STAGE BUT AS GOVERNORS WAYNE ANGELL AND LAWRENCE LINDSEY WARNED IN MARCH A LITTLE SNUGGING EARLY CAN AVOID MUCH HARSHER ACTION LATER 9306100134 930610 BUSINESS BRIEF ALLIANCE CAPITAL MANAGEMENT TO BUY FINANCIAL LINE FROM XEROX CORP UNIT NEW YORK ALLIANCE CAPITAL MANAGEMENT LP SAID IT AGREED TO BUY SHIELDS ASSET MANAGEMENT INC FROM A UNIT OF XEROX CORP WHICH HAS BEEN SHEDDING FINANCIAL LINES TO FOCUS ON COPIERS ALLIANCE VALUED THE AGREEMENT IN PRINCIPLE AT 85 MILLION CHIEFLY IN CASH BUT POSSIBLY INCLUDING SOME NEWLY ISSUED PARTNERSHIP UNITS WITH A HIGHER VALUE SHIELDS AND ITS REGENT INVESTORS SERVICES INC SUBSIDIARY MANAGE 78 BILLION IN ASSETS SHIELDS PRIMARILY MANAGES SOCALLED TAFTHARTLEY PENSION ASSETS FOR UNIONS AND GUILDS WHILE REGENT MANAGES ASSETS FOR BROKERAGE FIRM WRAP FEE PLANS ALLIANCE DOESN'T HAVE A PRESENCE IN EITHER BUSINESS FURMAN SELZ INC OWNS SHIELDS FURMAN SELZ IS OWNED BY XEROX FINANCIAL SERVICES INC THE ACCORD PROBABLY WILL DELAY UNTIL JULY THE COMPLETION OF ALLIANCE'S ACQUISITION OF EQUITABLE CAPITAL MANAGEMENT FROM EQUITABLE COS A SPOKESWOMAN FOR ALLIANCE SAID THE TRANSACTION HAD BEEN SCHEDULED TO BE COMPLETED NEXT WEEK THE DELAY IS LIKELY BECAUSE DETAILS OF THE SHIELDS ACQUISITION WEREN'T DISCLOSED IN SECURITIES & EXCHANGE COMMISSION FILINGS FOR THE EQUITABLE PURCHASE XEROX STOCK ROSE 75 CENTS TO 7425 IN THE NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY ALLIANCE EDGED UP 375 CENTS TO 19375 AFTER IT ACQUIRES SHIELDS AND EQUITABLE CAPITAL ALLIANCE'S ASSETS UNDER MANAGEMENT WILL INCREASE TO ABOUT 110 BILLION UP FROM ABOUT 66 BILLION ALLIANCE MANAGES MONEY FOR PENSION FUNDS WEALTHY INDIVIDUALS AND MUTUAL FUNDS EQUITABLE LIFE OWNS 55 OF ALLIANCE AND WILL OWN 63 AFTER IT SELLS EQUITABLE CAPITAL MANAGEMENT TO ALLIANCE SHIELDS CHAIRMAN HARRY L CARR JR SAID MANAGEMENT ENDORSES WHOLEHEARTEDLY THE TRANSACTION THE SHIELDS ACQUISITION IS PENDING DEFINITIVE AGREEMENTS AND APPROVAL BY BOARDS REGULATORS AND CLIENTS OF SHIELDS AND REGENT THE SALE IS THE LATEST OF SEVERAL STEPS BY XEROX TO SELL OFF FINANCIAL SUBSIDIARIES AND STICK TO COPIERS LAST YEAR XEROX SOLD ITS VAN KAMPEN MERRITT COS MONEY MANAGEMENT UNIT TO CLAYTON DUBILIER & RICE INC 9306100133 930610 FINANCING BUSINESS US HOME CORP US HOME CORP HOUSTON SAID IT INCREASED A PROPOSED PUBLIC OFFERING OF SENIOR NOTES TO 200 MILLION FROM THE PREVIOUSLY ANNOUNCED 175 MILLION THE HOME BUILDER WHICH FILED A BANKRUPTCYCOURT REORGANIZATION PLAN IN MARCH SAID 175 MILLION OF THE PROCEEDS FROM THE NOTES DUE 2003 WILL BE USED TO PAY CREDITORS THE REMAINING 25 MILLION WILL BE USED TO PAY DOWN A 95 MILLION WORKING CAPITAL DEBT THE COMPANY SAID ITS PLAN OF REORGANIZATION CONFIRMED BY A NEW YORK BANKRUPTCY COURT LAST MONTH IS NOW FINAL THE COMPANY SAID IT EXPECTS TO EMERGE FROM CHAPTER 11 THIS MONTH WITH THE CLOSING OF THE PROPOSED PUBLIC OFFERING THE UNDERWRITER IS DILLON READ & CO 9306100132 930610 FINANCING BUSINESS DRESSER INDUSTRIES INC DRESSER INDUSTRIES INC DALLAS SAID IT IS OFFERING 300 MILLION OF 625 NOTES DUE JUNE 1 2000 THE NOTES CAN'T BE REDEEMED UNTIL THEIR STATED MATURITY THE ENGINEERING AND PETROLEUM SERVICES CONCERN SAID PROCEEDS WILL BE USED TO FINANCE RECENT ACQUISITIONS THE OFFERING IS MANAGED BY MERRILL LYNCH & CO AND OTHERS 9306100131 930610 WHO'S NEWS KUHLMAN CORP KUHLMAN CORP LEXINGTON KY ROBERT S JEPSON JR CHIEF EXECUTIVE OFFICER OF THE MAKER OF ELECTRICAL EQUIPMENT WAS NAMED TO THE ADDITIONAL POST OF CHAIRMAN MR JEPSON 50 YEARS OLD SUCCEEDS DONALD O DULUDE 64 WHO BECOMES CHAIRMAN EMERITUS THE COMPANY ALSO REORGANIZED ITSELF AS A HOLDING COMPANY INCORPORATED IN DELAWARE AND NAMED VERNON J NAGEL A FORMER EXECUTIVE WITH STERICYCLE INC AS CHIEF FINANCIAL OFFICER OF THE NEW PARENT COMPANY KUHLMAN ALSO NAMED THREE NEW DIRECTORS WILLIAM E BURCH 68 A LAWYER WITH LUKINS & ANNIS IN SPOKANE WASH WILLIAM M KEARNS JR 57 AN INVESTMENT BANKER WITH LEHMAN BROTHERS AND ROBERT D KILPATRICK 69 A FORMER CHAIRMAN OF CIGNA CORP THE MOVE INCREASED THE BOARD'S SIZE TO NINE FROM SIX 9306100130 930610 WHO'S NEWS CCP INSURANCE INC CCP INSURANCE INC CARMEL IND LYNN C TYSON 50 YEARS OLD FORMERLY SENIOR VICE PRESIDENT AND CHIEF MARKETING OFFICER WAS NAMED PRESIDENT OF THE INSURANCE HOLDING COMPANY AND ITS LIFE INSURANCE SUBSIDIARIES SUCCEEDING STEPHEN C HILBERT 47 WHO REMAINS CHAIRMAN MR TYSON REMAINS CHIEF MARKETING OFFICER 9306100129 930610 INTERNATIONAL MEXICO'S ONCE ISOLATED FARMING SECTOR IS MOVING TOWARD GLOBAL AGRIBUSINESS BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL GOMEZ PALACIO MEXICO THE HIGHTECH CHICKEN COOP OF EDUARDO REYES HARDLY SEEMS THE INCUBATOR FOR A COUNTERREVOLUTION BUT IN THIS TOWN 500 MILES NORTHWEST OF MEXICO CITY MR REYES'S ENTERPRISE HAS STIRRED HIS NEIGHBORS' INTEREST FARMERS LIKE THE BURLY MR REYES ARE HELPING TO DISMANTLE WHAT WAS ONCE THE DEFINING ACHIEVEMENT OF MEXICO'S 1910 REVOLUTION THE COMMUNAL FARM AND THE RIGID PROTECTIONISM IT REPRESENTED MR REYES IS PART OF MEXICO'S GROWING MOVE TOWARD GLOBAL AGRIBUSINESS VENTURES ONCE ALL BUT OUTLAWED BY THE COUNTRY'S NATIONALISTIC CONSTITUTION MANY PEOPLE WANT TO DO THIS NOW WHEN THEY HEAR ABOUT OUR PROFITS SAYS MR REYES AS HE CHECKS TEMPERATURES IN HIS CHICKEN COOPS ON A BLISTERING DAY AND OUR MARKET PRICES ARE ALWAYS STABLE THAT WASN'T THE CASE WHEN MR REYES GREW COTTON MADE A PALTRY 2000 A YEAR AND BARELY KEPT HIS FAMILY FED HIS INCOME HAS TRIPLED SINCE HE SWITCHED TO CHICKENS WITH A CONTRACT FROM TRASGO SA A LARGE MEXICAN CHICKEN PRODUCER TRASGO SENDS ABOUT 10 OF ITS POULTRY TO ITOCHU CORP THE JAPANESE TRADING COMPANY TYSON FOODS INC OF SPRINGDALE ARK NO 1 IN THE GLOBAL POULTRY BUSINESS HAS AN 18 STAKE IN TRASGO AS COMMUNAL FARMS DISBAND AROUND THE WORLD IN THE INTERESTS OF EFFICIENCY MEXICO'S PRESIDENT CARLOS SALINAS DE GORTARI TOO IS TURNING HIS ATTENTION TO THE BACKWARD COUNTRYSIDE A YEAR AND HALF AGO IN HIS BOLDEST SOCIAL REFORM TO DATE HE GAVE PROPERTY RIGHTS BACK TO THE COMMUNALIZED FARMERS COMMUNAL FARMERS CAN NOW HOLD TITLE TO THEIR LAND SELL IT RENT IT OR FORM JOINT VENTURES WITH AGRIBUSINESSES FOREIGN AND DOMESTIC SUCH JOINT VENTURES ARE AT THE CENTER OF GOVERNMENT PLANS TO MAKE MEXICAN AGRICULTURE MORE EFFICIENT EVEN WITHOUT SUCH EFFICIENCY MEXICO NOW SUPPLIES A SIXTH OF THE FRUITS AND VEGETABLES IMPORTED BY THE US AND A TENTH OF THE 242 BILLION IN TOTAL US FOOD IMPORTS LAST YEAR THE ONSLAUGHT HAS SPURRED US COMPANIES TO SCOUT FOR MEXICAN PARTNERS MORE THAN A THIRD OF THE 40 BOARD MEMBERS OF THE POWERFUL WESTERN GROWERS ASSOCIATION OF THE US NOW HARVEST IN MEXICO EVEN CALIFORNIA'S FORMER TOP AGRICULTURAL OFFICIAL CLARE BERRYHILL HAS SHIFTED SOME OPERATIONS SOUTH FROM THE SAN JOAQUIN VALLEY BUT TWO VASTLY DIFFERENT WORLDS ARE COLLIDING US AGRICULTURE IS BY AND LARGE HIGHTECH MICROMANAGED AND MAINTAINED BY 3 OF THE POPULATION THE COMMUNAL FARMS OF MEXICO KNOWN AS EJIDOS ARE WATERED MORE OFTEN BY RAIN THAN IRRIGATION TILLED BY ANIMALDRAWN PLOWS RATHER THAN TRACTORS AND SUSTAIN NEARLY A THIRD OF MEXICO'S 85 MILLION PEOPLE THE EJIDOS ARE TROPHIES OF A BLOODY REVOLUTION THAT BROKE UP THE HACIENDAS OF MEXICO'S WHITE ELITE UNDER THE LAND AND LIBERTY BATTLE CRY OF A GUERRILLA LEADER EMILIANO ZAPATA SO VENERATED IS THIS REVOLUTIONARY THAT PRESIDENT SALINAS CHRISTENED HIS FIRST SON CARLOS EMILIANO BUT ZAPATA'S AGRARIAN ADVANCES HAVE ATROPHIED FAMILIES SLICED EJIDO SHARES INTO SMALLER AND SMALLER SLIVERS FOR SOME THE PARCELS BECAME SO SMALL DECADES AGO AS TO BE WORTHLESS TRASGO THE BIG MEXICAN CHICKEN PRODUCER BEGAN WORKING WITH COMMUNAL FARMERS WELL BEFORE PRESIDENT SALINAS'S REFORMS GOVERNMENT OFFICIALS SAY TRASGO AND DOZENS OF OTHER MEXICAN COMPANIES ONCE OPERATED IN A MURKY LEGAL AREA THAT HAS NOW BEEN CLARIFIED THE ENTERPRISE STARTED BECAUSE TRASGO COULDN'T GET THE LOWINTEREST LOANS THAT COMMUNAL FARMERS COULD IN THOSE DAYS THE DEVELOPMENT BANK WAS MORE WILLING TO GIVE MORE TO COMMUNAL FARMERS THAN THE PRIVATE SECTOR SAYS TRASGO'S CHIEF EXECUTIVE RAFAEL VILLEGAS ATTOLINI AS HE SITS INSIDE A MARBLED OFFICE THAT CONTRASTS SHARPLY WITH HIS PARTNERS' DIRTFLOORED HOVELS WE NEEDED TO EXPAND AND WE DIDN'T HAVE THE MONEY TRASGO NOW WORKS WITH ABOUT 900 COMMUNAL FARMERS FINANCING CHICKEN COOPS AT 100000 APIECE AND TRANSFERRING US TECHNOLOGY FROM TYSON AND THE COMMUNAL FARMERS ARE 7 MORE EFFICIENT THAN TRASGO'S OWN WORKERS THE IDEA IS QUITE SIMPLE THE HARDER YOU WORK THE MORE YOU MAKE SAYS MR VILLEGAS MOREOVER THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH WOULD LINK THE ECONOMIES OF MEXICO THE US AND CANADA COULD PUSH CROSSBORDER COOPERATION EVEN HARDER UNDER THE PACT WHICH FACES A TOUGH US PASSAGE US IMPORT BARRIERS WILL FALL OVER A 15YEAR PERIOD 9306100128 930610 TECHNOLOGY CHIP INDUSTRY INDEX SLIPPED DURING MAY BUT REMAINED STRONG SAN JOSE CALIF THE SEMICONDUCTOR INDUSTRY'S KEY INDICATOR FOR MAY DECLINED A LITTLE BUT REMAINED STRONG THE SOCALLED BOOKTOBILL RATIO FOR MAY WAS 112 THE SEMICONDUCTOR INDUSTRY ASSOCIATION SAID THAT'S DOWN FROM APRIL'S ROBUST 116 BUT UP FROM 111 A YEAR EARLIER IT MEANS THAT IN MAY FOR EVERY 100 OF CHIPS SHIPPED CHIP MAKERS RECEIVED 112 WORTH OF ORDERS A BOOKTOBILL RATIO OF MORE THAN 100 IS CONSIDERED HEALTHY CHIP SALES AND ORDERS HAVE BEEN STRONG IN RECENT MONTHS BECAUSE OF BOOMING DEMAND FOR PERSONAL COMPUTERS FUELED BY PC PRICE WARS MAY CHIP SHIPMENTS BASED ON A THREEMONTH MOVING AVERAGE ROSE 35 TO 197 BILLION FROM 146 BILLION A YEAR EARLIER SHIPMENTS FOR MAY WERE 2 ABOVE APRIL SHIPMENTS OF 193 BILLION ORDERS ALSO BASED ON A THREEMONTH AVERAGE ROSE 37 TO 222 BILLION FROM 161 BILLION LAST YEAR MAY ORDERS WERE 14 BELOW APRIL ORDERS OF 225 BILLION 9306100127 930610 CORPORATE FOCUS NORTHWEST AIR NEEDS MORE THAN JUST BREATHING ROOM BEYOND THE WRANGLING WITH UNIONS AND LENDERS LIE WEIGHTIER CHALLENGES BY SUSAN CAREY AND ROBERT L ROSE STAFF REPORTERS OF THE WALL STREET JOURNAL NORTHWEST AIRLINES IS PLAYING A HIGHSTAKES POKER GAME AND ITS CARDS ARE NONE TOO GOOD THE AIRLINE'S CURRENT HAND TO WIN HUGE CONCESSIONS FROM ITS UNIONS APPEARS TO BE UNRAVELING IN THE FACE OF LABOR'S OPPOSITION WITHOUT THE UNIONS' ASSENT IT IS CERTAIN THE CARRIERS' BANKS WILL REFUSE TO DELIVER THE DEBT RESCHEDULING THAT NORTHWEST BADLY NEEDS BUT EVEN IF NORTHWEST SUCCEEDS WITH BOTH ITS UNIONS AND ITS LENDERS IT WILL STILL FACE BIG OBSTACLES THE AIRLINE'S INTRINSIC PROBLEMS ARE MANIFOLD ITS ROOM TO MANEUVER IS LIMITED AND THE INDUSTRY WORLDWIDE IS CHANGING IN WAYS THAT DON'T HELP NORTHWEST'S CHANCES NORTHWEST EXECUTIVES INSIST THE AIRLINE FACES A BRIGHT FUTURE IF THE UNIONS GO ALONG WITH THE CONCESSIONSFORSTOCK PLAN AND ITS LENDERS THEN AGREE TO DEFER DEBT PAYMENTS THE PLAN HERALDS A NEW ERA OF LABORMANAGEMENT RELATIONS THE COMPANY SAYS AND GUARANTEES THAT FOR THREE YEARS NWA WILL BE THE LOWCOST PRODUCER AMONG THE COUNTRY'S FIVE LARGEST AIRLINES BUT MANY AIRLINE EXPERTS THINK NORTHWEST WILL FACE TOUGH GOING EVEN IF IT GETS BOTH LABOR AND LENDERS INTO LINE IT'S NOT A PERMANENT FIX SAYS RAYMOND NEIDL A JUNK BOND ANALYST AT FURMAN SELZ INC IT GIVES THE CARRIER BREATHING SPACE AND TIME TO WORK ON A PERMANENT FIX THAT WILL BE DIFFICULT THE AIRLINE'S DOMESTIC ROUTE NETWORKBUILT AROUND HUBS IN MINNEAPOLIS ST PAUL AND DETROIT IS RELATIVELY SMALL AND LOPSIDED ITS PACIFIC DIVISION IS NO LONGER THE MONEYSPINNER IT ONCE WAS AND ITS NORTH ATLANTIC STRATEGY BASICALLY AN ALLIANCE WITH 20 SHAREHOLDER KLM ROYAL DUTCH AIRLINES COULD BE DISMANTLED IF KLM MERGES WITH THREE OTHER EUROPEAN CARRIERS THE ST PAUL MINN UNIT OF CLOSELY HELD WINGS HOLDINGS INC HAS TOLD WORKERS THAT IT MAY HAVE TO SEEK PROTECTION UNDER BANKRUPTCY LAW IF THEY DON'T COOPERATE NORTHWEST SAYS THE LABOR CONCESSIONS WILL ENABLE IT TO SLICE 115 OF ITS TOTAL COSTS OVER THREE YEARS AND UNDER THE RELATED PROPOSAL WITH ITS BANKS IT SAYS ITS LOAD OF DEBT AND LEASE PAYMENTS WOULD BE FAR LIGHTER THAN THOSE OF THE THREE BIGGEST US CARRIERS AT LEAST UNTIL 1997 NORTHWEST HAS YET TO REACH AN AGREEMENT WITH ITS POWERFUL PILOTS UNION WHICH IS BEING ASKED TO CONTRIBUTE 365 MILLION OF THE TOTAL 886 MILLION IN LABORCOST SAVINGS OVER THREE YEARS PILOTS' LEADERS HAVE HARSHLY CRITICIZED THE PACTS PARTLY FOR NOT GETTING A BETTER DEAL FROM LENDERS BUT PAT FLANAGAN AN ADVISER TO THE TEAMSTERS NOTED THAT UNLIKE THE UNIONS THE BANKS ARE NEGOTIATING FROM A STRONG POSITION BECAUSE THEIR LOANS ARE BACKED BY COLLATERAL AT NORTHWEST IT IS NOT A COMPLETE FIX HE SAID OF LABOR'S DEAL WITH THE AIRLINE BUT IT'S A FIRST STEP IN MAKING CREDITORS COMFORTABLE SO IT WILL GIVE THE COMPANY NEARTERM ROOM AND ALLOW NEW ACCESS TO CAPITAL MARKETS RICHARD HIRST NORTHWEST'S GENERAL COUNSEL SAID IN A LETTER TO THE PILOTS' UNION THAT GIVEN FOUR YEARS AND A DECENT ENVIRONMENT FINANCING THE COMPANY'S 1997 PAYMENT AND EXTENDING ITS REVOLVING CREDIT SHOULD BE A STRAIGHTFORWARD TASK FOR EXPERIENCED FINANCIAL MANAGEMENT HE'S NOT THE ONLY ONE TRYING TO SOUND OPTIMISTIC AT NORTHWEST THESE DAYS JOHN DASBURG PRESIDENT AND CHIEF EXECUTIVE OFFICER SAYS THAT ON A SCALE OF 10 MARVELOUS TO ONE PERILOUS WE'RE A SEVEN NOW HE SAYS SIX MONTHS AGO WE WERE ABOUT A THREE WE NEVER GOT TO A ONE AMONG THE TURNAROUND MEASURES ALREADY IN PLACE SCALING BACK HUBS IN MILWAUKEE WASHINGTON AND SEOUL SOUTH KOREA LAYING OFF 3200 EMPLOYEES SINCE LAST JUNE AND REVAMPING OPERATIONS AT THE HUB AT TOKYO'S NARITA AIRPORT WE HAVE ARRIVED AT WHAT WE SEE AS THE BASIC CORE AIRLINE SAYS MR DASBURG HE ACKNOWLEDGES THAT THE CARRIER NEEDS TO GET BIGGER IN NORTH AMERICA BUT SAYS THE HISTORY OF ACQUIRING OR MERGING AIRLINES ISN'T GOOD HE SAYS NORTHWEST WILL HAVE TO SEARCH FOR MARKETING RELATIONSHIPS WITH OTHER MIDSIZE US CARRIERS BUT ADMITS THAT AT THIS TIME WE RECOGNIZE THE PROBLEM BUT WE DON'T HAVE ANY ANSWERS NORTHWEST'S EXTENSIVE PACIFIC DIVISION ONCE THE MACHINE THAT PRODUCED 75 TO 80 OF THE AIRLINE'S PROFIT ON ONLY A THIRD OF THE COMPANY'S GLOBAL REVENUE HASN'T MADE MONEY SINCE 1989 AND WON'T PRODUCE OPERATING PROFIT THIS YEAR IT WOULD BE THE ALLTIME TURNAROUND IF IT DID SAYS WILLIAM SLATTERY NORTHWEST'S EXECUTIVE VICE PRESIDENT IN CHARGE OF INTERNATIONAL OPERATIONS BUT WE WILL MAKE SUBSTANTIAL PROGRESS TOWARD BREAKING EVEN DURING THE YEAR HE SAYS OVERCAPACITY ACROSS THE PACIFIC MORE AIRLINE COMPETITORS LOWER YIELDS AND RECESSION IN JAPAN HAVE CONSPIRED TO KEEP THE DIVISION IN THE RED AIRLINE OFFICIALS SAY IN RESPONSE NORTHWEST CUT UNPROFITABLE ROUTES IN THE REGION AND REDUCED CAPACITY MORE THAN 8 IN THE FIRST QUARTER BUT NORTHWEST HAS NO INTENTION OF SELLING ITS PACIFIC ROUTES SAYS MR DASBURG NOT ONLY DO THEY SECURE SOME OF THE DEBT OF THE AIRLINE AND ITS PARENT COMPANY HE SAYS BUT A SALE WOULD BE A HUGE STRATEGIC MISTAKE I DON'T THINK TIMES EVER GET SO ROCKY THAT YOU SELL A STRATEGIC ASSET MR DASBURG SAYS HE HAS NO REASON TO BELIEVE KLM'S CURRENT TALKS WITH THREE OTHER EUROPEAN CARRIERS WILL JEOPARDIZE THE KLMNORTHWEST PARTNERSHIP KLM AUSTRIAN AIRLINES SWISSAIR AND SCANDINAVIAN AIRLINES SYSTEM ARE EXPLORING AN ALLIANCE TO SHORE UP THEIR SAGGING INDIVIDUAL POSITIONS IN EUROPE KLM WHILE NOTING THAT THE NUMBER OF JOINT FLIGHTS AND OTHER COOPERATIVE PROJECTS WITH NORTHWEST ARE ON THE RISE WON'T PREDICT WHAT EFFECT ITS EUROPEAN TALKS MIGHT HAVE ON NORTHWEST OR ON SWISSAIR'S EQUITY PARTNER DELTA AIR LINES OR ON SAS'S EQUITY PARTNER CONTINENTAL AIRLINES THE PARTNERS MUST FIRST DECIDE THE SITUATION IN EUROPE SAYS A KLM SPOKESMAN THEN WE WILL LOOK AS A GROUP AT THE AMERICAN SITUATION WE DIDN'T TAKE ANY FIRM POINT OF VIEW BEFOREHAND KLM LAST WEEK WROTE OFF THE LAST OF ITS 400 MILLION INVESTMENT IN NORTHWEST AN INVESTMENT THAT HAS DRAGGED DOWN ITS EARNINGS FOR SEVERAL YEARS KEVIN MURPHY AN AIRLINE ANALYST AT MORGAN STANLEY CO SAYS NORTHWEST COULD BUY SOME TIME WITH THE UNIONS AND BANKS ON BOARD BUT HE SAYS THE FUTURE LOOKS LESS CERTAIN THEY CAN'T ALL MAKE IT MR MURPHY SAYS OF THE EXISTING AIRLINES NORTHWEST IN THE LONGER TERM MAY HAVE TO CONSOLIDATE OR DO SOMETHING ELSE FOR NOW THOUGH NORTHWEST IS PREOCCUPIED WITH ITS POKER GAME WITH LABOR IF EITHER THE TEAMSTERS OR THE MACHINISTS REJECT THE CONCESSIONARY PACT THE AIRLINE WOULD HAVE TO CHOOSE BETWEEN THE BARGAINING TABLE AND BANKRUPTCY PROCEEDINGS THE MACHINISTS SAY THEY WON'T RELEASE FINAL RESULTS UNTIL JULY 2 AND A SPOKESWOMAN FOR THE TEAMSTERS SAYS THE FLIGHT ATTENDANTS MIGHT WAIT UNTIL THE SAME DAY TO RELEASE THEIR TALLY SO FAR THE CARDS AREN'T ENCOURAGING WITH SOME OF THE BIGGEST MACHINISTS' LOCALS VOTING NO THAT UNION'S PROPOSED PACT FOR ITS 26000 NORTHWEST WORKERS APPEARS HEADED FOR DEFEAT THE TEAMSTERS WHICH REPRESENT 9000 FLIGHT ATTENDANTS TOLD MEMBERS THIS WEEK THAT THE UNION BELIEVES THE COMPANY WILL FILE CHAPTER 11 BANKRUPTCY ALMOST IMMEDIATELY UPON REJECTION NORTHWEST COULD CHOOSE TO WAIT OF COURSE IT AND OTHER AIRLINES ARE FLYING INTO THE SEASON WHEN PASSENGERS ARE PLENTIFUL AND CASH FLOW IMPROVES AND ITS NEXT BIG BANK PAYMENT ISN'T DUE UNTIL JANUARY THE PILOTS MEANWHILE ARE FAR FROM SIGNING ON THEY WANT LENDERS TO SPREAD DEBT REPAYMENTS OVER A LONGER PERIOD AND REDUCE INTEREST RATES THEY ALSO OBJECT TO THE PLAN'S CALL FOR HIGHERPAID WORKERS TO GIVE UP A GREATER PERCENTAGE OF THEIR EARNINGS THE PROVISION APPEALED TO THE MACHINISTS AND TEAMSTERS WHOSE MEMBERS AREN'T PAID NEARLY AS MUCH INDIVIDUAL NORTHWEST EMPLOYEES ARE LOOKING AT THEIR OWN OPTIONS FOR FLIGHT ATTENDANT ERIC BRECKENRIDGE CONCESSIONS WOULD MEAN MOVING TO A SMALLER APARTMENT AS HIS MONTHLY TAKEHOME PAY WOULD DROP TO 1100 FROM ABOUT 1200 STILL HE SAYS HE INTENDS TO VOTE FOR THE PACT IT'S EITHER THAT OR BANKRUPTCY SAYS MR BRECKENRIDGE WHO JOINED NORTHWEST ABOUT 18 MONTHS AGO HE LOST HIS LAST JOB AT MIDWAY AIRLINES WHEN THE CHICAGOBASED CARRIER FAILED TO EMERGE FROM BANKRUPTCY AND WENT OUT OF BUSINESS SCANDINAVIAN AIRLINES SYSTEM HAS A MARKETING ALLIANCE WITH CONTINENTAL AIRLINES BUT ISN'T ANY LONGER AN EQUITY PARTNER IN THE AIRLINE A CORPORATE FOCUS ARTICLE YESTERDAY INCORRECTLY STATED THAT SAS AND CONTINENTAL ARE EQUITY PARTNERS 9306100126 930610 DATA BROADCASTING CORP NEW YORK DATA BROADCASTING CORP SIGNED A MEMORANDUM OF UNDERSTANDING WITH CHINA'S STATE INFORMATION CENTER TO CREATE A NATIONWIDE DATATRANSMISSION NETWORK IN THAT COUNTRY THIS IS THE FIRST DEAL IN CHINA FOR DATA BROADCASTING WHICH ONLY MONTHS AGO ENTERED THE INTERNATIONAL ARENA WITH A VENTURE IN GERMANY THE COMPANY PROVIDES 20000 CLIENTS WORLDWIDE WITH STOCK MARKET QUOTES AND OTHER SPECIALIZED MARKET DATA 9306100125 930610 YIELDS ON TAXABLE MONEYMARKET FUNDS SHOW LITTLE CHANGE NEW YORK YIELDS ON TAXABLE MONEYMARKET FUNDS SHOWED LITTLE CHANGE IN THE LATEST WEEK WHILE TAXFREE YIELDS DROPPED IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD FELL TO 265 FROM 266 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS THE AVERAGE TAXFREE SEVENDAY COMPOUND YIELD FELL TO 206 FROM 223 THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 286 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 299 FOR SOMEONE PAYING 31 IN TAXES THE AVERAGE MATURITY OF TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS SHORTENED BY TWO DAYS TO 62 DAYS ASSETS OF 598 TAXABLE FUNDS INCREASED BY 567 BILLION TO 48027 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ACCOUNTED FOR MOST OF THE INFLOW THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS REMAINED AT 262 IN THE LATEST WEEK THE AVERAGE 30DAY SIMPLE YIELD INCHED TO 261 FROM 260 WHILE THE AVERAGE 30DAY COMPOUND YIELD REMAINED AT 264 ASSETS OF 323 TAXEXEMPT FUNDS INCREASED BY 296 BILLION TO 10237 BILLION ACCORDING TO MONEY FUND REPORT THE AVERAGE PORTFOLIO MATURITY SHORTENED BY ONE DAY TO 47 DAYS 9306100124 930610 TECHNOLOGY & HEALTH IN THE LAB HDTV IS ALL DONE WITH MIRRORS BY KYLE POPE STAFF REPORTER OF THE WALL STREET JOURNAL THE PRICE WAS CHEAP CONSIDERING THAT IN THAT LAB ACTUALLY A BATTERED CHEVROLET PICKUP WITH 350000 MILES ON IT THE PREVIOUS OWNER DREAMED UP AN IDEA THAT COULD LEAD TO A 1 BILLION BUSINESS AND CHANGE THE WAY PEOPLE WATCH TELEVISION ALMOST EVERYTHING I EVER THOUGHT ABOUT HAS COME UP IN THOSE TWO HOURS OF COMMUTING IN THAT TRUCK SAYS LARRY J HORNBECK A BEARDED 49YEAROLD TI ENGINEER WHO FAVORS COWBOY BOOTS AND BIG BELT BUCKLES AND SPENDS HIS FREE TIME WRITING COUNTRY AND WESTERN SONGS MR HORNBECK'S IDEA SPAWNED TWO DECADES AGO DURING ONE OF HIS 50MILE DAILY COMMUTES TO WORK IS AN INTRICATE VIDEO PROJECTION SYSTEM THAT APPEARS FINALLY TO BE WINDING ITS WAY OUT OF THE TI SKUNK WORKS AFTER YEARS OF FRUSTRATION NOT ONLY MIGHT THE SYSTEM MEAN BIG MONEY FOR TI BUT IT COULD HELP MAKE THE COMPANY A LEADER IN THE RACE TOWARD HIGHDEFINITION TELEVISION THE VIDEO INDUSTRY'S HOT NEW HIGHTECH HOPE HDTV JUST FELL INTO OUR LAPS MR HORNBECK SAYS INSIDE A DARKENED LOCKED DEMO ROOM ON THE SECOND FLOOR OF TI'S NORTH DALLAS HEADQUARTERS MR HORNBECK'S SYSTEM LOOKS LIKE AN OVERGROWN VERSION OF AN OLD SUPER EIGHT MOVIE PROJECTOR A BEAM OF LIGHT SHOOTS 30 FEET ACROSS THE ROOM FROM A BOXY BLACK MACHINE TO A VIDEO SCREEN AS BIG AS THREE OR FOUR REFRIGERATORS STACKED SIDE BY SIDE WHILE THERE'S NO SOUND THE PICTURE IS A STUNNER PARROTS IN A TROPICAL JUNGLE ARE SHARPLY IN FOCUS LIKE THE IMAGE YOU GET FROM 35MM PHOTOGRAPHS IN A GLOSSY TRAVEL MAGAZINE THE FEATHERS ARE RICH AND BRIGHT NOTHING LIKE THE WASHEDOUT PASTELS ON MANY OF TODAY'S BIG TVS LARRY HORNBECK'S MAGIC THOUGH IS INSIDE THE CONTRAPTION WHERE A SLIVER OF SILICON THE SIZE OF A MATCHBOOK HAS BEEN JAMMED WITH 440000 MICROSCOPIC MIRRORS TO MAKE THE PARROTS COME TO LIFE INDEED IF YOU TAKE OFF THE COVER OF THE MACHINE AND LOOK INTO THE EYE OF THE COMPUTER CHIP AT ITS CORE YOU CAN SEE THE IMAGE OF THE PARROTS ON THE SURFACE OF THE SILICON DANCING ABOUT IN SPLITSECOND ELECTRONIC CURRENTS ON ITS MOST FUNDAMENTAL LEVEL MR HORNBECK'S MACHINE IS LIKE THE HIKER ON A DESERT PLATEAU FLASHING OFF BEAMS OF LIGHT FROM A HANDHELD MIRROR TILTED TO CATCH THE RIGHT ANGLE OF THE SUN THE DIFFERENCE HERE IS THAT MR HORNBECK IS WORKING WITH HUNDREDS OF THOUSANDS OF MIRRORS EACH OF THEM ABOUT ONEFOURTH THE WIDTH OF A HUMAN HAIR BY DIGITALLY COORDINATING THE MOVEMENT OF ALL OF THE MIRRORS EACH OF WHICH ULTIMATELY REPRESENTS A PIXEL OF LIGHT ON THE VIDEO SCREEN MR HORNBECK CAN PRODUCE EVERY POSSIBLE SHADE OF GRAY FORMING A PICTURE RECOGNIZED BY THE EYE AS A MOVING IMAGE EACH MIRROR IS TOLD WHETHER TO TILT 10 DEGREES OR STAY PUT BY A DIGITAL COMMAND A 1 OR A 0 THE LONGER THE MIRROR REFLECTS THE LIGHT THE BRIGHTER THE IMAGE BECAUSE THE MIRRORS ARE SO SMALL THEY CAN MOVE AT ABOUT 20 MILLIONTHS OF A SECOND FAST ENOUGH TO FOOL THE EYE THAT THESE TINY BURSTS OF LIGHT ARE ACTUALLY MOVING PICTURES THE DIGITAL MICROMIRROR DEVICE OR DMD AS TI CALLS IT SITS ATOP A CONVENTIONAL SEMICONDUCTOR CHIP MEANING THAT THE COMPANY CAN PRODUCE THE DEVICES IN ITS EXISTING CHIPMAKING PLANTS TI IS HOPING TO PUMP OUT HUNDREDS OF THE CHIPS THEN SELL THEM TO TV MAKERS WHO WILL USE THE DMDS AS THE CENTERPIECE OF NEW GENERATIONS OF PROJECTION SYSTEMS THE COMPANY SO FAR IS MUM ON WHICH FIRMS MIGHT BE INTERESTED THOUGH TALKS ARE SAID TO BE UNDER WAY THOUGH TI CAN'T BACK UP ITS 1 BILLION ESTIMATE FOR THE NASCENT INDUSTRY WITH SOLID EVIDENCE UNUSUAL FOR A COMPANY THAT TENDS TOWARD THE CONSERVATIVE SIDE OFFICIALS ARE BASING THE NUMBER ON ZOOMING PROJECTIONS FOR HDTV WHICH PROMISES TO DELIVER PHOTOQUALITY PICTURES AS WELL AS EVERYTHING FROM ELECTRONIC MOVIES TO STOCK QUOTES STRAIGHT TO HOME TV SETS TI THINKS THE DIGITAL SYSTEM IS PERFECT FOR HDTV BECAUSE IT DOESN'T PRODUCE THE STATIC OF MOST OTHER BIGSCREEN SYSTEMS JUST AS DIGITAL COMPACT DISKS HAVE CLEANER SOUND THAN ANALOG VINYL RECORDS AND TI IS BETTING THAT THE SYSTEM WILL BE PERFECTLY SUITED FOR THE ALLDIGITAL DATA HIGHWAY PROMOTED BY THE CLINTON ADMINISTRATION IF MR HORNBECK CAN WORK OUT THE FINAL KINKS TI LATER THIS YEAR PLANS TO BEGIN MARKETING HIS SYSTEM TO THE WORLD'S TELEVISION MANUFACTURERS AND HOPES TO DELIVER THE SETUPS BY THE LATE 1990S TI OFFICIALS ACKNOWLEDGE THAT THE SYSTEMS INITIALLY WILL CARRY A HIGH PRICE TAG AND EARLY VERSIONS OF THE DMD PRODUCTS WILL BE LIMITED TO UPSCALE HIGHTECH AFICIONDOS IF TI CAN BRING THE SYSTEM TO MARKET IT WILL END A LONG AND OFTEN PAINFUL RESEARCH EFFORT THE BASIC TECHNOLOGY FOR THE DEVICE WAS PATENTED IN 1939 AND COMMERCIALIZED IN A VASTLY DIFFERENT FORM IN THE 1950S FOR MOST OF THE PAST 20 YEARS TI HAS BEEN TINKERING WITH DMD USES FOR THE MILITARY INCLUDING DEVELOPING A HOLOGRAM DEVICE USED IN SMARTBOMB WEAPONS WHILE MR HORNBECK AND OTHER ENGINEERS HAVE ALWAYS SENSED THAT THE DMD WOULD BEST BE SUITED FOR COMMERCIAL DISPLAY TECHNOLOGIES IT TOOK THEM TWO DECADES TO CRACK THE CODE CONSTANT PRODDING FROM GEORGE H HEILMEIER THEN TI'S CHIEF TECHNICAL OFFICER KEPT MR HORNBECK GOING THERE IS IRONY IN THAT RELATIONSHIP SINCE MR HORNBECK'S DEVICE COULD MAKE MR HEILMEIER'S INVENTION THE LIQUIDCRYSTAL DISPLAY OBSOLETE DURING THE PROCESS AN OFFTHECUFF STATEMENT BY MR HEILMEIER MANY GOOD MEN HAVE BEEN CRUSHED BY THIS EFFORT WAS BANNERED ACROSS A CHALK BOARD IN MR HORNBECK'S OFFICE AND KEPT THERE UNTIL THE CHIP PROVED SUCCESSFUL THE BREAKTHROUGH CAME IN 1988 WHEN MR HORNBECK DECIDED TO SUSPEND THE MIRROR ABOVE THE CHIP WITH TWO TINY METAL BEAMS SOLVING A NAGGING PROBLEM STILL THE EXISTING PROJECTION SYSTEM HAS ITS SHORTFALLS BECAUSE OF A SOFTWARE GLITCH A PROTOTYPE PRODUCED NOTHING BUT VERTICAL LINES ON THE SCREEN DURING A DEMONSTRATION LAST MONTH THAT WAS QUICKLY FIXED BUT THE PICTURE WAS STILL POCKMARKED WITH RANDOM BITS OF LIGHT A RESULT OF MOISTURESENSITIVE MIRRORS REFUSING TO MOVE TI NEVERTHELESS IS CONVINCED IT IS ON TO SOMETHING AT A MEETING OF WALL STREET ANALYSTS EARLIER THIS YEAR CHAIRMAN JERRY JUNKINS SHOWED OFF A DMD MACHINE THE ONLY NEW PIECE OF TECHNOLOGY HIGHLIGHTED DURING THE BRIEFING ANALYSTS VIEWED THE DEVICE AS SOMETHING OF A NOVELTY INTRIGUING BUT NOTHING THEY EXPECT TO SHOW UP ON TI'S BOTTOM LINE ANYTIME SOON MEANWHILE LARRY HORNBECK WHO NOW DRIVES A TOYOTA COMPACT IS ALREADY ON TO OTHER APPLICATIONS FOR THE DMD SO FAR HE'S KEEPING THE NEW TWISTS TO HIMSELF I HAVEN'T HAD MY LAST IDEA HE SAYS