STAMFORD CONN PETROLEUM HEAT & POWER CO THE NATION'S LARGEST RETAIL DISTRIBUTOR OF HOME HEATING OIL HOPES TO ACCELERATE ITS ACQUISITIONS OF HOME HEATINGOIL DISTRIBUTORS AS POTENTIAL SELLERS SHOW MORE INTEREST IN STOCK RATHER THAN CASH TRANSACTIONS IN APRIL THE COMPANY ISSUED 50 MILLION OF SUBORDINATED NOTES WITH HALF EARMARKED FOR FUTURE ACQUISITIONS AND GENERAL CORPORATE PURPOSES AND THE OTHER HALF TO BE USED TO RETIRE DEBT THE COMPANY'S INITIAL PUBLIC OFFERING LAST YEAR NOT ONLY RAISED 427 MILLION FOR ACQUISITIONS BUT ALSO GAVE IT THE FLEXIBILITY TO OFFER STOCK RATHER THAN CASH TO POTENTIAL SELLERS PETRO CHAIRMAN AND CHIEF EXECUTIVE IRIK P SEVIN SAID IN AN INTERVIEW THAT THE COMPANY IS TALKING WITH SIX TO EIGHT LARGER HEATINGOIL DISTRIBUTORS INTERESTED IN SELLING THEIR CUSTOMER ACCOUNTS TO PETRO IN TAXFREE STOCK TRANSACTIONS RATHER THAN TAXABLE CASH DEALS TRADITIONALLY OFFERED BY THE COMPANY THE COMPANY'S INITIAL PUBLIC OFFERING LAST JULY OF CLASS A SHARES HE ADDED GIVES IT THE FLEXIBILITY TO OFFER STOCK FOR ACQUISITIONS WE'VE BEEN DISCUSSING GIVING SELLERS A VOTING PREFERRED STOCK A CUSTOMMADE SECURITY FOR THE SELLER MR SEVIN SAID HE DECLINED TO NAME THE POSSIBLE SELLERS BUT SAID THEY EACH GENERALLY SELL MORE THAN 10 MILLION GALLONS OF HOME HEATING OIL A YEAR AND WOULD FETCH A PURCHASE PRICE OF 5 MILLION OR MORE PETRO HAS PAID ABOUT 16 MILLION TO BUY THE CUSTOMER ACCOUNTS OF SMALL MOMANDPOP HEATINGOIL DISTRIBUTORS THROUGHOUT THE NORTHEAST WITH ANNUAL SALES OF ABOUT THREE MILLION GALLONS AND 2000 TO 3000 CUSTOMERS APIECE SINCE 1979 THE COMPANY HAS ACQUIRED 138 COMPANIES IN METROPOLITAN AREAS RANGING FROM WASHINGTON TO BOSTON INCLUDING NINE SINCE ITS IPO LAST YEAR STILL PETRO ESTIMATES IT CONTROLS ONLY 5 OF THE NATION'S HOME HEATINGOIL MARKET WITH ANNUAL SALES IN 1992 OF 4231 MILLION GALLONS OUR GOAL IS TO BECOME THREE TO FOUR TIMES OUR CURRENT SIZE IN THE NEXT FIVE TO SEVEN YEARS MR SEVIN SAID BY ADDING ABOUT 100 MILLION GALLONS AND 100000 CUSTOMERS A YEAR THROUGH ACQUISITIONS 9306100122 930610 DEAD ON ARRIVAL CLINTON HEALTH PLAN BY JOSEPH BAST HILLARY RODHAM CLINTON'S HEALTH CARE COMMISSION IS NOW DISBANDED IN ITS SHORT LIFE IT WENT FROM BEING A FEARED POLITICAL FORCE CAPABLE OF QUICK ACTION TO A SYMBOL OF THE ADMINISTRATION'S LOSS OF DIRECTION AND PUBLIC SUPPORT FOR TAXPAYERS AND CONSUMERS THIS IS GOOD NEWS AND A REASON FOR OPTIMISM ABOUT THE FUTURE OF HEALTH CARE REFORM MRS CLINTON SET OUT TO REFORM THE NATION'S HEALTH CARE SYSTEM RADICALLY BY EXCLUDING FROM THE COMMISSION PEOPLE WITH HANDSON EXPERIENCE IN FINANCING AND DELIVERING HEALTH CARE AND BY HOLDING ITS MEETINGS IN SECRET MRS CLINTON SOUGHT A QUICK VICTORY OVER POLITICAL OPPONENTS AND SPECIAL INTEREST GROUPS SEEKING LESS DRAMATIC OR MORE PROMARKET REFORMS WITH PUBLIC OPINION ON HER SIDE THE FIRST LADY SEEMED POSITIONED TO SCORE A MAJOR COUP FOR THE NEW ADMINISTRATION AT FIRST THE STRATEGY WORKED SEVERAL MAJOR BUSINESS GROUPS SEEKING A PLACE AT THE TABLE GAVE TENTATIVE ENDORSEMENTS TO MANAGED COMPETITION AND OTHER IDEAS DISCUSSED BY THE COMMISSION BUT SOON MRS CLINTON'S STRATEGY SLAMMED INTO WASHINGTON'S POLITICAL REALITIES THE CONGRESSIONAL BUDGET OFFICE ANNOUNCED THAT MANAGED COMPETITION THE CENTERPIECE OF THE CLINTON PLAN WOULD COST AT LEAST 270 BILLION OVER FIVE YEARS THE LIBERAL MYTH THAT COVERAGE FOR THE UNINSURED COULD BE BOUGHT OUT OF SAVINGS GENERATED BY NEW REGULATIONS ON INSURERS WAS DEMOLISHED THE ISSUE OF HOW TO FINANCE HEALTH CARE REFORM CAME OUT OF THE SHADOWS NEXT THE PUBLIC LEARNED THAT AN ESSENTIAL FEATURE OF MANAGED COMPETITION WOULD BE NEW RESTRICTIONS ON THE ABILITY OF PATIENTS TO CHOOSE DOCTORS ONCE MANAGED COMPETITION BECAME TAINTED WITH THIS SHORTCOMING THE ADMINISTRATION ABANDONED THE LABEL BUT APPARENTLY NOT THE CONCEPT THE CLINTON JUGGERNAUT BEGAN TO SLOW THEN CAME DEFEAT OF THE STIMULUS PACKAGE PRESIDENT CLINTON SEEMED TOO QUICK TO BACK DOWN AND COMPROMISE THE BUSINESS COMMUNITY SENSED THAT THE CLINTON ADMINISTRATION WAS LOSING MOMENTUM AND WOULDN'T STAND FIRMLY BEHIND MRS CLINTON'S RECOMMENDATIONS LAST MONTH THE ADMINISTRATION'S TAX AND SPENDING PLAN BARELY PASSED THE HOUSE AND NOW FACES STRONG OPPOSITION IN THE SENATE EVEN AS IT STRUGGLES TO GET ITS MUCH SMALLER TAX INCREASES ENACTED THE WHITE HOUSE HAS FLOATED THE IDEA OF PAYROLL TAXES OF 10 TO FINANCE ITS HEALTH CARE PLAN ALARMING MANY BUSINESS LEADERS AND TAXPAYER GROUPS BUSINESS SUPPORT BASED ON PROMISES THAT HEALTH CARE REFORM WOULD PRODUCE RELIEF FROM HIGH INSURANCE PREMIUMS HAS VIRTUALLY DISAPPEARED THE COMMISSION AS SUCH NO LONGER MEETS BUT THE ADMINISTRATION THESE DAYS IS ENGAGED IN A DESPERATE CAMPAIGN TO WIN BACK SPECIFIC GROUPS WITH A BLIZZARD OF NEW PROPOSALS BENEFITS OR EXCLUSIONS EACH MORE FANTASTIC THAN THE NEXT DRUG MANUFACTURERS ARE PROMISED THAT DRUGS WILL BE PART OF THE BASIC BENEFITS PACKAGE DOCTORS ARE PROMISED PROTECTION FROM MALPRACTICE LIABILITY LABOR LEADERS ARE PROMISED BENEFITS EVERY BIT AS GOOD AS THOSE NEGOTIATED WITH THE BIG THREE AUTO MAKERS BUSINESS LEADERS ARE PROMISED TEMPORARY PRICE CONTROLS AND GLOBAL BUDGETS AND FEDERAL ASSUMPTION OF WORKERS' COMPENSATION COSTS STATES ARE PROMISED A MAJOR ROLE IN TAILORING THE PLAN TO EACH STATE'S NEEDS THE LIST GROWS LONGER BY THE DAY INSTEAD OF MAKING ITS PLAN MORE ATTRACTIVE THOUGH RECENT REVISIONS AND EXPANSIONS OF THE CLINTON HEALTH CARE PLAN HAVE RAISED DIFFICULT WORKABILITY PROBLEMS AND ALMOST CERTAINLY HAVE BOOSTED THE PRICE TAG FAR ABOVE THE LEVEL THE CONGRESS WILL APPROVE THE SHEER NUMBER OF TRIAL BALLOONS TELLS CONGRESS AND SPECIAL INTEREST GROUPS THAT EVERY ELEMENT OF THE PLAN IS NEGOTIABLE MRS CLINTON AND HER COMMISSION ARE NO LONGER RESPECTED OR FEARED HAVING LOST A CREDIBLE CLAIM TO OVERWHELMING SUPPORT FROM THE PUBLIC MRS CLINTON NEEDS A NEW STRATEGY TO WIN APPROVAL OF HER IDEAS BUT IF HER COMMENTS A FEW WEEKS AGO AT A CONVENTION OF THE SERVICE EMPLOYEES INTERNATIONAL UNION ARE ANY INDICATION SHE HAS YET TO FIND ONE INSTEAD OF ACKNOWLEDGING THE NEED TO BRING PROVIDERS OF HEALTH CARE INTO THE PLANNING PROCESS SHE REPEATED EARLIER STRIDENT RHETORIC ALLEGING THAT GREEDY AND OVERPAID INTEREST GROUPS OPPOSE ALL HEALTH CARE REFORM THIS MESSAGE MAY HAVE WORKED IN FEBRUARY BEFORE THE PUBLIC UNDERSTOOD THE CHOICES THEY FACED BUT IT IS NOW UNPERSUASIVE AND COUNTERPRODUCTIVE TO HER CAUSE TIME IS THE ENEMY OF THE CLINTON PLAN IT NOW APPEARS THAT CONGRESS WON'T ACT ON A HEALTH CARE BILL IN 1993 WITH HOUSE AND SENATE ELECTIONS TAKING PLACE IN 1994 AND WITH 1993'S TAX INCREASES FRESH ON VOTERS' MINDS IT IS HARD TO IMAGINE HOW THE CLINTON ADMINISTRATION WOULD FIND MAJORITIES IN EITHER HOUSE WILLING TO VOTE FOR ANOTHER ROUND OF MAJOR TAX INCREASES IF AS MANY ECONOMISTS NOW PREDICT THE ECONOMY IN 1994 WILL BE GROWING ONLY SLOWLY OR NOT AT ALL PASSAGE OF AN EXPENSIVE NEW SOCIAL PROGRAM IS EVEN LESS LIKELY IF A HEALTH CARE PLAN IS NOT PASSED IN 1994 ALL BETS ARE OFF FOR 1995 WILL PLAY OR PAY MANAGED COMPETITION OR GLOBAL BUDGETS STILL BE IN THE PACKAGE OR WILL IT CONSIST OF FEDERAL PREEMPTION OF STATE MANDATES MEANINGFUL TORTLAW AND TAX REFORM AND MEDICAL SAVINGS ACCOUNTS THE LATTER CHANGES ARE ALL LIKELY COMPONENTS OF A GOP COUNTERPROPOSAL EXPECTED TO BE UNVEILED SOON DESPERATE TO TAKE CREDIT FOR DOING SOMETHING ABOUT HEALTH CARE A CLINTON ADMINISTRATION IN 1995 WOULD BE SORELY TEMPTED TO ADOPT MAJOR PARTS OF THE REPUBLICAN PLAN PRESIDENT CLINTON ALREADY HAS ADOPTED THE RHETORIC OF A CONSENSUSBUILDING MODERATE IF THE RHETORIC BECOMES REALITY THE RESULT COULD BE HEALTH CARE REFORMS THAT GENUINELY BENEFIT CONSUMERS ABUSINESS AND HEALTH CARE PROVIDERS MR BAST IS PRESIDENT OF THE CHICAGOBASED HEARTLAND INSTITUTE AND COAUTHOR OF WHY WE SPEND TOO MUCH ON HEALTH CARE THE HEARTLAND INSTITUTE 1993 9306100121 930610 FED DATA SHOW AGENCY ACCEPTED SCARCE SECURITIES BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON A FEDERAL RESERVE REPORT SHOWED THAT THE CENTRAL BANK'S OPENMARKET OPERATIONS IN 1991 AND 1992 OCCASIONALLY ACCEPTED SCARCE TREASURY SECURITIES FROM DEALERS RAISING QUESTIONS OF WHETHER THE FED MAY HAVE CONTRIBUTED TO MARKET SQUEEZES FED VICE CHAIRMAN DAVID MULLINS SAID IN A REPORT TO CONGRESS THAT ONE CANNOT NECESSARILY CONCLUDE THAT THE FED'S USE OF THESE SCARCE SECURITIES IN ITS MONETARYPOLICY OPERATIONS CONTRIBUTED TO SHORTAGES BUT REP EDWARD MARKEY D MASS SAID FED DATA SUGGEST THE FED MAY HAVE INADVERTENTLY HELPED EXACERBATE SHORTAGES IN THE SUPPLY OF SOME TREASURY SECURITIES THE FIGURES SHOWED THE CENTRAL ACCEPTED SECURITIES THAT WERE ON SPECIAL BY MORE THAN ONE PERCENTAGE POINTS ON 33 OCCASIONS IN 1991 AND 1992 AND BY LESSER BUT STILL APPRECIABLE AMOUNTS MANY OTHER TIMES I FIND IT RATHER IRONIC THAT THE FED WHICH CONTINUES TO OPPOSE NEEDED REFORM IN THE REGULATION OF THIS MARKET MAY ACTUALLY HAVE CONTRIBUTED TO MARKET INEFFICIENCY AND SHORT SQUEEZES WITH ITS OWN MARKET OPERATIONS SAID REP MARKEY CHAIRMAN OF THE HOUSE TELECOMMUNICATIONS AND FINANCE SUBCOMMITTEE OPENMARKET OPERATIONS ENTAILING THE FREQUENT BUYING AND SELLING OF TREASURY SECURITIES ARE THE CHIEF TOOL USED BY THE FED TO CARRY OUT MONETARY POLICY IN PROVIDING OR WITHDRAWING RESERVES FROM THE BANKING SYSTEM ON A TEMPORARY BASIS THE FED ENGAGES IN REPURCHASE AGREEMENTS AND REVERSEREPURCHASE AGREEMENTS WITH DEALERS WHO USE THE SOCALLED REPO MARKET TO FINANCE POSITIONS IN TREASURY SECURITIES REPOS ARE SECURED LOANS COLLATERALIZED BY TREASURY SECURITIES WHICH ARE REFERRED TO AS COLLATERAL IN TRADE JARGON COLLATERAL THAT'S ON SPECIAL IS SCARCE AND COMMANDS A PREMIUM THE PROFILE OF THESE ARCANE MATTERS WAS ELEVATED WHEN THE JUSTICE DEPARTMENT LAST YEAR CHARGED SALOMON BROTHERS INC WITH COLLABORATING WITH UNNAMED COCONSPIRATORS TO SQUEEZE TREASURY NOTES SOLD IN MAY 1991 SALOMON PAID MORE THAN 27 MILLION IN SETTLING THE ANTITRUST CHARGES WITHOUT ADMITTING OR DENYING GUILT A FEDERAL GRAND JURY CONTINUES TO INVESTIGATE SUSPECTED COCONSPIRATORS FED VICE CHAIRMAN MULLINS IN HIS REPORT TO THE HOUSE FINANCE SUBCOMMITTEE SAID THE FED HAS A POLICY OF NOT TAKING SECURITIES THAT ARE DEEPLY ON SPECIAL HE SAID THIS POLICY SHOULD BE FAMILIAR TO ALL PRIMARY DEALERS BUT ADDED THAT THE FED WOULD REMIND PRIMARY DEALERS OF THE POLICY DATA PROVIDED BY THE FED TO THE HOUSE SUBCOMMITTEE INDICATED THE CENTRAL BANK DID TAKE SECURITIES THAT WERE SIGNIFICANTLY ON SPECIAL ON SEVERAL OCCASIONS IN 1991 AND 1992 THE FED'S REPORT SHOWED IT TOOK SECURITIES THAT WERE ON SPECIAL BY MORE THAN ONE PERCENTAGE POINT AN ESTIMATED 21 TIMES IN 1991 AND 12 TIMES IN 1992 BY 076 POINT TO ONE POINT 15 TIMES IN 1991 AND FIVE TIMES IN 1992 BY 051 POINT TO 075 POINT 27 TIMES IN 1991 AND 10 TIMES IN 1992 AND BY 025 POINT TO 050 POINT 85 TIMES IN 1991 AND 14 TIMES IN 1992 9306100120 930610 YOUR MONEY MATTERS INVESTMENT DARTBOARD MONEY MANAGER WINS HER THIRD IN A ROW BY JOHN R DORFMAN STAFF REPORTER OF THE WALL STREET JOURNAL MAKE IT THREE STRAIGHT FOR ELIZABETH BRAMWELL THE NEW YORK MONEY MANAGER WHO RUNS THE 672 MILLION GABELLI GROWTH FUND HAS WON THIS COLUMN'S STOCKPICKING CONTEST THREE TIMES IN A ROW THAT PUTS MS BRAMWELL IN ELITE COMPANY ONLY ONE OTHER PERSON HAS STRUNG TOGETHER MORE THAN TWO CONSECUTIVE VICTORIES JAMES H MORGAN NOW PRESIDENT OF INTERSTATE/JOHNSON LANE NOTCHED FIVE WINS IN A ROW IN 1988 AND 1989 INCLUDING MR MORGAN AND MS BRAMWELL FOUR OF THE 112 PROFESSIONAL INVESTORS WHO HAVE PARTICIPATED IN THE CONTEST HAVE ACHIEVED AS MANY AS THREE WINS CONSECUTIVE OR NOT THE OTHER TWO ARE FINANCIAL PUBLISHER JONATHAN STEINBERG AND MONEY MANAGER REMY FISHER LED BY MS BRAMWELL A CORPS OF PROFESSIONAL STOCKPICKERS HANDILY OUTPERFORMED A RANDOMLY CHOSEN DARTBOARD PORTFOLIO IN THE LATEST CONTEST WHICH RAN FROM DEC 7 THROUGH THE END OF MAY THE PROS WERE UP 28 COLLECTIVELY STOCKS CHOSEN BY A VOLLEY OF DARTS FLUNG AT THE STOCK LISTINGS ROSE 66 THE DOW JONES INDUSTRIAL AVERAGE ROSE 67 THIS TILTS THE CONTESTS A BIT FURTHER IN THE PROS' DIRECTION BUT THE SCORE REMAINS CLOSE IN A SERIES OF 36 OVERLAPPING SIXMONTH SESSIONS THE PROS HAVE WON 20 TIMES THE DARTS 16 TIMES THE AVERAGE SIXMONTH GAIN IS 87 FOR THE PROS 54 FOR THE DARTS MS BRAMWELL'S MOST RECENT PICK CARPET MAKER MOHAWK INDUSTRIES INC ADVANCED 65 FROM 1650 ON DEC 7 TO 2725 AT THE END OF MAY WHEN THE LATEST CONTEST ENDED SINCE THEN IT HAS RISEN TO 3250 OVER THE COUNTER AS INVESTORS CHEERED MOHAWK'S ACQUISITION OF FIELDCREST CANNON INC'S CARPET AND RUG BUSINESS ATTEMPTING TO RUN HER STREAK TO FOUR STRAIGHT MS BRAMWELL CHOOSES INACOM CORP A MARKETER OF COMPUTER EQUIPMENT INACOM HAS SOME 1200 COMPUTER CENTERS AROUND THE COUNTRY BUT IT ISN'T SEEKING WALKIN CONSUMER TRAFFIC RATHER IT SERVES LARGE CORPORATIONS WHICH TYPICALLY ORDER DOZENS OF COMPUTERS AT A GULP ALONG WITH SOFTWARE AND SERVICE THIS YEAR INACOM OF OMAHA NEB ACQUIRED SEARS ROEBUCK & CO'S COMPUTER CENTERS BOOSTING ITS ESTIMATED 1993 REVENUE ABOUT 50 TO APPROXIMATELY 15 BILLION ACCORDING TO MS BRAMWELL INTEGRATION OF THE FORMER SEARS CENTERS INTO INACOM'S SYSTEM IS GOING WELL SO FAR PROSPECTS FOR INACOM LOOK BRIGHT TO MS BRAMWELL SHE SAYS THE NAMEBRAND EQUIPMENT IT SELLS IBM COMPAQ HEWLETTPACKARD AND APPLE FOR EXAMPLE IS REGAINING MARKET SHARE FROM CLONE COMPANIES THAT COMPETED ON PRICE SHE THINKS INACOM WILL GAIN SOME MARKET SHARE IN THE NEXT YEAR OR TWO AT THE EXPENSE OF JWP INC AND VARIOUS REGIONAL COMPETITORS ALL IN ALL SHE SPECULATES THAT INACOM WILL BE ABLE TO SHOW 15 TO 20 GROWTH IN SALES AND EARNINGS SHE PEGS THE EARNINGS AT A PROBABLE 180 PER SHARE THIS YEAR AND 220 NEXT YEAR AND CONSIDERS THE STOCK A BARGAIN AT ITS CURRENT LEVEL INACOM TRADED OVER THE COUNTER YESTERDAY AT 1850 A SHARE AND MS BRAMWELL WOULD BUY IT AT PRICES UP TO 22 HOPING FOR A 25 TO 50 GAIN IN THE NEXT SIX MONTHS TO A YEAR SECOND PLACE IN THE LATEST CONTEST WENT TO MICHAEL J PAHK A MONEY MANAGER AT BERG CAPITAL CORP IN NEW YORK HE RIGHTLY PREDICTED THAT ADOLPH COORS CO'S PLAN TO SPIN OFF MOST OF ITS NONBEER OPERATIONS SINCE ACCOMPLISHED WOULD BENEFIT COORS'S SHAREHOLDERS MR PAHK'S NEW PICK IS PHOENIX TECHNOLOGIES LTD A TINY 75 MILLION OR SO IN SALES SOFTWARE COMPANY IN NORWOOD MASS PHOENIX'S SPECIALTY IS ITS BASIC INPUT/OUTPUT SYSTEM OR BIOS MR PAHK DESCRIBES IT AS SORT OF A TRAFFIC COP THAT CONTROLS THE MOVEMENT OF INFORMATION AMONG DIFFERENT PARTS OF A PERSONAL COMPUTER SUCH AS THE KEYBOARD DISK DRIVE AND MODEM PHOENIX'S CUSTOMERS INCLUDE COMPAQ AND PACKARD BELL BUT MR PAHK IS MORE EXCITED BY A PACT IT SIGNED A FEW MONTHS AGO TO DISTRIBUTE IBM'S BIOS SOFTWARE HE BELIEVES THAT WILL SIGNIFICANTLY EXPAND PHOENIX'S SALES HE GUESSES THAT PHOENIX WILL EARN 40 CENTS A SHARE IN THE FISCAL YEAR ENDING IN SEPTEMBER AND 50 CENTS A SHARE NEXT FISCAL YEAR SO HE FINDS THE STOCK ATTRACTIVE AT ITS RECENT OVERTHECOUNTER PRICE OF 5 NEW TO THE CONTEST IS GEORGE PUTNAM III PRESIDENT OF NEW GENERATION RESEARCH IN BOSTON AND EDITOR OF TURNAROUND LETTER MR PUTNAM IS AN EXPERT ON COMPANIES THAT ARE IN BANKRUPTCY PROCEEDINGS OR THAT HAVE RECENTLY EMERGED FROM THEM THE STOCK HE RECOMMENDS IS LOMAS FINANCIAL CORP A MORTGAGE SERVICING COMPANY IN DALLAS LITTLE FOLLOWED BY WALL STREET SINCE IT EMERGED FROM BANKRUPTCY LAST YEAR LOMAS FINANCIAL WAS AT 750 A SHARE YESTERDAY ON THE NEW YORK STOCK EXCHANGE MR PUTNAM EXPECTS IT TO EARN 70 CENTS A SHARE IN THE FISCAL YEAR THAT ENDS THIS MONTH SO THE STOCK IS SELLING FOR ONLY ABOUT 10 TIMES EARNINGS IN THIS MARKET THAT'S PRETTY CHEAP HE OBSERVES LOMAS ORIGINATES FEW MORTGAGES ITSELF SO IT WON'T BE HURT AS OTHER MORTGAGE BANKERS MAY BE IF INTEREST RATES SOON BEGIN TO RISE MR PUTNAM SAYS IN FACT HE SAYS RISING RATES COULD ACTUALLY BE AN ADVANTAGE FOR LOMAS FEWER PEOPLE WOULD REFINANCE THEIR MORTGAGES MAKING LOMAS'S SERVICING PORTFOLIO MORE STABLE LOMAS ALSO HAS A SIDELINE IN SELLING TO OTHER MORTGAGE BANKERS THE SOFTWARE IT USES TO KEEP TRACK OF MORTGAGE PAYMENTS ESCROWS AND OTHER PAPERWORK LOMAS INFORMATION SYSTEMS IS CURRENTLY LOSING ABOUT 70 CENTS A SHARE MR PUTNAM SAYS BUT SHOULD BREAK EVEN WITHIN A YEAR OR TWO HELPING EARNINGS CONSIDERABLY THE OTHER NEW CONTESTANT IS LARRY RICE CHIEF MARKET STRATEGIST FOR JOSEPHTHAL LYON & ROSS IN NEW YORK HE CHOOSES MERCK & CO THE HIGHLY REGARDED BUT BATTERED PHARMACEUTICAL STOCK MERCK OF RAHWAY NJ HAS A REPUTATION FOR TOPNOTCH RESEARCH AND DEVELOPMENT MR RICE SAYS IT IS THE CREME DE LA CREME WITH A TERRIFIC PIPELINE OF NEW DRUGS LAST YEAR MERCK SHARES FETCHED AS MUCH AS 56 A SHARE MR RICE NOTES YESTERDAY THEY WERE TRADING AT 3675 ON THE BIG BOARD AT 15 TO 16 TIMES THIS YEAR'S ESTIMATED EARNINGS 235 TO 240 MR RICE FINDS MERCK TOO TEMPTING TO RESIST AND ITS DIVIDEND OF 1 A SHARE HE NOTES PROVIDES A YIELD CLOSE TO THAT OF BANK MONEYMARKET ACCOUNTS AS FOR UNCERTAINTY ABOUT THE CLINTON ADMINISTRATION'S HEALTHCARE PLANS MR RICE SAYS MOST OF THE BAD NEWS WILL HAVE BEEN DISCOUNTED BY THE TIME THE PROGRAM IS ANNOUNCED FOR THE COMING SIX MONTHS THE PROS' PICKS WILL COMPETE AGAINST A DARTBOARD PORTFOLIO CONSISTING OF FOODMAKER INC GENESCO INC SANDERSON FARMS INC AND SWING N SLIDE CORP 9306100119 930610 MARKETING & MEDIA P&G'S PEPTO SHOWN EFFECTIVE TO TREAT DIARRHEA IN YOUNG BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL A NEW STUDY SHOWING PEPTOBISMOL EFFECTIVELY TREATS SEVERE DIARRHEA IN CHILDREN COULD OPEN NEW MARKETS FOR PROCTER & GAMBLE CO'S MATURE STOMACH MEDICINE AND HELP MILLIONS OF YOUNGSTERS IN THE US AND ABROAD THE STUDY REPORTED IN TODAY'S NEW ENGLAND JOURNAL OF MEDICINE FOUND THAT PEPTOBISMOL TAKEN IN COMBINATION WITH AN ORAL REHYDRATION SOLUTION OF SALTS AND GLUCOSE REDUCES FLUID LOSS IN PATIENTS AS WELL AS THE DURATION AND SEVERITY OF DIARRHEA PREVIOUS STUDIES HAVE SUGGESTED THAT PEPTOBISMOL KILLS GERMS AND REDUCES INFLAMMATION GETTING AT THE ROOT CAUSES OF DIARRHEA THE FINDINGS COULD WIDEN THE MARKET FOR P&G'S PEPTOBISMOL A 92YEAROLD PRODUCT SOLD IN THE US CANADA MEXICO PUERTO RICO PANAMA AND THE UNITED KINGDOM PEPTOBISMOL HAS GENERALLY BEEN USED BY ADULTS FOR DIARRHEA NAUSEA AND INDIGESTION THOUGH IT IS ALSO SUGGESTED FOR CHILDREN OVER AGE THREE P&G SAID THE STUDY ADDS TO THE EXISTING BODY OF SCIENTIFIC DATA PHYSICIANS RELY ON IN TREATING CHILDHOOD DIARRHEA THE CINCINNATI COMPANY ALSO SAID IT IS WORKING WITH FOREIGN GOVERNMENTS TO MAKE PEPTOBISMOL MORE BROADLY AVAILABLE AROUND THE WORLD THERE DEFINITELY WILL BE A WIDER USE FOR PEPTOBISMOL SAID WILLIAM GREENOUGH III A PROFESSOR OF MEDICINE AND INTERNATIONAL HEALTH AT JOHNS HOPKINS UNIVERSITY AND PRESIDENT OF THE INTERNATIONAL CHILD HEALTH FOUNDATION WHICH FUNDED THE STUDY DR GREENOUGH SAID THE RESULTS OF THE STUDY COULD HAVE IMPLICATIONS FOR THE TREATMENT OF DIARRHEA WHICH DEBILITATES MORE THAN 15 BILLION CHILDREN WORLDWIDE EACH YEAR IN THE US 20 MILLION CHILDREN ARE STRICKEN WITH DIARRHEA ANNUALLY RESULTING IN 209000 HOSPITALIZATIONS THE WORLD HEALTH ORGANIZATION ESTIMATES FOUR MILLION CHILDREN DIE EACH YEAR FROM THE CONDITION WHICH IS CAUSED BY BACTERIA VIRUS OR PARASITES PHYSICIANS AT THE UNIVERSIDAD PERUANA CAYETANO HEREDIA LIMA PERU CONDUCTED A 14MONTH RANDOMIZED STUDY OF 275 PERUVIAN BABY BOYS AGES THREE MONTHS TO ONE MONTH SHY OF FIVE YEARS WHO WERE SUFFERING FROM ACUTE DIARRHEA THE STUDY FOUND THAT DIARRHEA STOPPED WITHIN FIVE DAYS FOR 89 OF PATIENTS WHO RECEIVED 100 MILLIGRAMS OF BISMUTH SUBSALICYLATE THE ACTIVE INGREDIENT IN PEPTOBISMOL COMPARED WITH 74 OF THOSE ON A PLACEBO MORE IMPORTANT PEPTOBISMOL STOPPED THE DEBILITATING LOSS OF FLUIDS IF FLUID LOSS IS TREATED EARLY THE PATIENT DOESN'T END UP IN THE HOSPITAL SERIOUSLY ILL DR GREENOUGH SAID DR GREENOUGH SAID PREVIOUS STUDIES HAVE FOUND OTHER NONPRESCRIPTION ANTIDIARRHEALS SOLD IN THE US TO BE EFFECTIVE AT STOPPING DIARRHEA BUT NONE IS AS EFFECTIVE AS PEPTOBISMOL IN REDUCING THE QUANTITY OF FLUIDS LOST DURING DIARRHEA BOUTS PARENTS IN THE US ARE LESS VIGILANT THAN PARENTS IN OTHER COUNTRIES ABOUT REPLACING FLUIDS IN CHILDREN WITH DIARRHEA DR GREENOUGH SAID DIARRHEA HAS BEEN TRIVIALIZED IN THE US BUT IT'S A SERIOUS PROBLEM 9306100118 930610 BUSINESS BRIEF MARION MERRELL DOW AGREES TO ALTER ADS FOR NICOTINE PATCH KANSAS CITY MO MARION MERRELL DOW INC REACHED A CONSENT AGREEMENT WITH 12 STATE ATTORNEYS GENERAL TO ALTER THE COMPANY'S ADVERTISEMENTS FOR A NICOTINE PATCH AND THE ANTIHISTAMINE SELDANE MARION ALSO AGREED TO PAY 600000 TO PAY FOR THE COST OF THE STATE INVESTIGATIONS AND BRING THE GOVERNMENT INQUIRIES TO A CLOSE IN DOING SO THE PHARMACEUTICAL CONCERN DENIED ANY WRONGDOING BUT SAID IT WOULD MAKE WARNINGS AND OTHER DISCLOSURES TO CONSUMERS CLEARER AND MORE PROMINENT IN ADVERTISING THE POPULAR PRODUCTS THE ATTORNEYS GENERAL SAID MARION'S ADVERTISING FOR ITS NICODERM NICOTINE SMOKINGCESSATION PATCH FAILED TO EXPLAIN FULLY THAT THE PATCHES' LONGTERM EFFECTIVENESS HAS NOT BEEN ESTABLISHED ILLINOIS ATTORNEY GENERAL ROLAND W BURRIS SAID THE NICOTINE PATCH ADS DIDN'T ADEQUATELY WARN PEOPLE THAT THE PATCHES SHOULDN'T BE USED LONGER THAN THREE MONTHS OR THAT PEOPLE SHOULD STOP USING THE PATCHES IF THEY CONTINUE TO SMOKE NICOTINE FROM PATCHES OR CIGARETTES IS TOXIC AND ADDICTIVE AND CAN BE ASSOCIATED WITH HEART MALADIES SUCH AS ARRHYTHMIAS MARION CONTENDED ITS WARNINGS WERE ADEQUATE BUT AGREED TO THE CHANGES IN ADDITION THE LAWENFORCEMENT OFFICIALS SAID NICODERM IS ONLY AN AID FOR QUITTING SMOKING AND THAT ITS USEFULNESS HAS BEEN SHOWN ONLY WHEN USED ALONG WITH A COUNSELING PROGRAM TO STOP SMOKING THE POPULAR ANTIHISTAMINE SELDANE AND A RELATED PRODUCT SELDANED ARE KNOWN TO POSE HEALTH RISKS WHEN TAKEN IN COMBINATION WITH CERTAIN OTHER DRUGS THE ATTORNEYS GENERAL CONTENDED MARION HADN'T FULLY WARNED PEOPLE NOT TO TAKE SELDANE OR SELDANED IN GREATERTHANPRESCRIBED DOSAGES OR WITH THE ANTIFUNGAL DRUGS KETOCONAZOLE AND ITRACONAZOLE WITH ANTIBIOTICS ERYTHROMYCIN CLARITHROMYCIN OR TROLCANDOMYCIN OR IF THE PERSON HAS LIVER DISEASE IN MARCH 11 ATTORNEY GENERAL OFFICES REACHED A SIMILAR AGREEMENT WITH CIBAGEIGY CORP OVER ADVERTISING FOR ITS NICOTINE PATCH HABITROL 9306100117 930610 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG COMPUTER MAKERS HAVE LONG STRUGGLED TO DESIGN A PORTABLE IBMCOMPATIBLE PC WHOSE WEIGHT AND SIZE WERE TRULY NEGLIGIBLE AND WHOSE BATTERY WAS REALLY LONG LASTING AND EASY TO REPLENISH WITHOUT A FATAL COMPROMISE THAT CRIPPLED THE KEYBOARD OR SCREEN OR MADE USING THE LATEST WINDOWS SOFTWARE IMPOSSIBLE ALL SUCH ATTEMPTS HAVE FALLEN SHORT IN MY VIEW UNTIL NOW FOR I AM WRITING THIS COLUMN ON A 2200 PC THAT WEIGHS UNDER THREE POUNDS AND IS SMALLER THAN A SHEET OF TYPING PAPER YET RUNS THE LATEST VERSION OF THE MOST POPULAR WINDOWS WORD PROCESSOR AND HAS A DECENT NINEINCH SCREEN A KEYBOARD WITH STANDARDSIZED KEYS AND A MOUSE THAT POPS OUT FROM THE SIDE OF THE COMPUTER WHAT'S MOST STARTLING IS THAT I AM RUNNING THIS MACHINE ON FOUR ORDINARY AA ALKALINE BATTERIES I BOUGHT AT A DRUGSTORE AND IT HAS BEEN GOING STRONG FOR THREE HOURS WITH PLENTY OF JUICE LEFT TO FINISH THIS ARTICLE THIS UNUSUAL COMPUTER IS THE NEW OMNIBOOK 300 AND IT'S MADE BY HEWLETTPACKARD BETTER KNOWN FOR PRINTERS THAN COMPUTERS HP HAD A LOT OF HELP FROM MICROSOFT THE SOFTWARE GIANT IN CREATING THE MACHINE LIKE ALL NEW DESIGNS IT HAS A FEW FLAWS STILL I REGARD THE OMNIBOOK AS A BREAKTHROUGH THE FIRST PC SMALL ENOUGH AND WITH GOOD ENOUGH BATTERY LIFE TO LET YOU WORK WITH WINDOWS SOFTWARE ALL THE WAY THROUGH A CROSSCOUNTRY PLANE FLIGHT WITHOUT HASSLES THE KEY TO THE OMNIBOOK IS NEW TECHNOLOGY HP HAS MADE EXTENSIVE USE OF A DEVICE THAT LOOKS LIKE A THICK CREDIT CARD WITH COMPUTER CHIPS SEALED INSIDE UNLIKE DISKS THESE MODULES CALLED PCMCIA CARDS IN INDUSTRY JARGON DON'T REQUIRE POWERDRAINING MOTORS OR OTHER MOVING PARTS YET RETAIN THEIR DATA EVEN WHEN THE POWER IS OFF THE OMNIBOOK USES TWO TYPES OF THESE FLASH DISKS ONE WITH FACTORYINSTALLED UNALTERABLE DATA IN ROM OR READONLY MEMORY AND ANOTHER THAT USERS CAN STORE DATA ON ERASE AND REWRITE THE OMNIBOOK HAS FOUR SLOTS FOR SUCH CARDS OR FOR MINIATURE HARD DISK DRIVES MODEMS AND OTHER DEVICES ONE OF THE SLOTS CONTAINS A CARD WITH PERMANENT MEMORY CHIPS THAT HOLD MICROSOFT'S WINDOWS AND DOS OPERATING SYSTEMS ALONG WITH SLIMMEDDOWN VERSIONS OF THAT COMPANY'S POPULAR WORDPROCESSING PROGRAM MICROSOFT WORD AND ITS EXCEL SPREADSHEET HP ALSO BUILDS IN A CALENDAR PACKAGE ELECTRONIC PHONE BOOK AND FINANCIAL CALCULATOR BECAUSE ALL THAT SOFTWARE IS ON A PERMANENT MEMORY CARD THE OMNIBOOK CAN GET BY WITH RELATIVELY LITTLE DATASTORAGE CAPACITY A SECOND CARD SLOT IS USED FOR THIS PURPOSE IT CONTAINS EITHER A FLASH DISK WITH REWRITABLE MEMORY CHIPS THAT CAN HOLD 20 MEGABYTES OF DATA OR A TINY 40MEGABYTE HARD DISK DRIVE THESE DEVICES CAN HOLD THE USER'S DOCUMENTS OR ADDITIONAL SOFTWARE PROGRAMS SINCE THE FLASH DISKS HAVE NO MOVING PARTS BATTERY LIFE ON THE OMNIBOOK IS GREAT HP SAYS THE STANDARD RECHARGEABLE BATTERY PACK CAN GET UP TO NINE HOURS OF NORMAL USE AND IT SAYS THE MODEL THAT USES THE FLASH DISK IN THE SECOND SLOT INSTEAD OF THE TINY DISK DRIVE CAN RUN FOR UP TO SIX HOURS IN NORMAL USE ON FOUR ORDINARY AA ALKALINE BATTERIES THE HARDDISK MODEL NEEDS TOO MUCH POWER FOR STANDARD ALKALINE CELLS BUT CAN RUN ON LESSCOMMON AA LITHIUM BATTERIES I'VE USED ALKALINES IN TESTING THE FLASHDISK MODEL AND HAVE GOTTEN UP TO FIVE HOURS OF CONTINUOUS USE FROM A SET OF BATTERIES THE FLASHDISK TECHNOLOGY ALSO LETS THE OMNIBOOK START UP AND LAUNCH PROGRAMS ALMOST INSTANTLY WHEN THE MACHINE IS RESTARTED IT TAKES THE USER RIGHT BACK TO THE WORK THAT WAS ON THE SCREEN WHEN IT WAS TURNED OFF AND YOU CAN SWITCH BETWEEN APPLICATIONS JUST BY HITTING A COUPLE OF KEYS THERE ARE OTHER NICE INNOVATIONS THE POPOUT MOUSE IS CONNECTED TO THE COMPUTER BY A FLEXIBLE PLASTIC ARM AND THE OMNIBOOK HAS AN INFRARED TRANSMITTER TO TRANSFER DATA TO OTHER SIMILARLY EQUIPPED PCS SO FAR ALAS ONLY HP BUILDS SUCH AN INFRARED DEVICE INTO DESKTOP MACHINES UNTIL DESKTOP PCS ROUTINELY COME WITH INFRARED CAPABILITY OR SLOTS FOR FLASHDISK CARDS THE OMNIBOOK MUST RELY ON CABLES TO TRANSFER DATA FILES BECAUSE HP DOESN'T OFFER A FLOPPY DISK DRIVE USERS MUST FIRST INSTALL SPECIAL FILETRANSFER SOFTWARE ON THEIR DESKTOP PCS OVER CABLE FROM THE OMNIBOOK THIS INSTALLATION WAS HARD IT TOOK LOTS OF ARCANE KNOWLEDGE TO GET THE TWO COMPUTERS PROPERLY HOOKED UP AND RECOGNIZING EACH OTHER HP SHOULD JUST SUPPLY THE SPECIAL SOFTWARE ON A DISK THE OMNIBOOK IS ALSO MORE EXPENSIVE THAN IT SEEMS TO BE ABLE TO USE COMMON BATTERIES YOU HAVE TO START WITH THE MORE COSTLY 2200 MODEL INSTEAD OF THE 1800 HARDDISK MODEL AN AC ADAPTER NORMALLY INCLUDED FREE WITH SUCH MACHINES COSTS 99 AN EXTRA TWO MEGABYTES OF MEMORY NEEDED FOR REALLY CRISP OPERATING SPEED COSTS 179 AND A MODEM A NECESSITY ON THE ROAD COSTS 379 THAT RAISES THE COMPUTER'S COST TO NEARLY 3000 SOME BUYERS MAY BALK AT THE SCREEN WHICH IN ANOTHER BATTERYSAVING MEASURE WAS DESIGNED WITHOUT BACKLIGHTING BUT UNLIKE OTHER UNLIGHTED SCREENS I'VE SEEN THIS ONE IS ACCEPTABLE IF NOT GREAT UNDER MOST CONDITIONS MY ONLY OTHER COMPLAINT IS THAT HP FAILED TO BUILD IN ONE CRUCIAL WINDOWS PROGRAM SOLITAIRE DO THEY THINK EXECUTIVES USE ONLY SPREADSHEETS ON THOSE LONG FLIGHTS STILL THE OMNIBOOK SHOULD BE A WINNER IT'S THE MODERNDAY EQUIVALENT OF THE OLD TANDY MODEL 100 A LIGHTWEIGHT PORTABLE FROM THE EARLY 1980S THAT ALSO RAN ON REGULAR BATTERIES AND WAS WILDLY POPULAR WITH TRAVELING JOURNALISTS THE NEW HP MACHINE HAS A GOOD CHANCE TO ATTRACT ITS OWN CULT 9306100116 930610 HJ HEINZ AUTHORIZES BUYBACK PITTSBURGH HJ HEINZ CO SAID ITS BOARD AUTHORIZED THE BUYBACK OF AS MANY AS 10 MILLION COMMON SHARES THE FOOD PRODUCTS CONCERN SAID THE PURCHASE OF THE SHARES WILL TAKE PLACE OVER AN EXTENDED PERIOD OF TIME ON THE OPEN MARKET HEINZ SAID THE BUYBACK WILL BEGIN ONCE THE CURRENT AUTHORIZATION IS COMPLETED THE COMPANY SAID THE MOST RECENT BUYBACK AUTHORIZATION WAS BEGUN IN DECEMBER 1991 WITH 300000 SHARES REMAINING TO BE BOUGHT BACK UNDER IT HEINZ SAID DILLON READ & CO NEW YORK WILL BE THE BROKER FOR THE BUYBACK PROGRAM THE COMPANY CURRENTLY HAS ABOUT 254 MILLION COMMON SHARES OUTSTANDING 9306100115 930610 SLAYING A PAIR OF CAPGAINS VILLAINS BY BRUCE BARTLETT SUPPORTERS OF A REDUCTION IN THE CAPITALGAINS TAX HAVE LONG VIEWED SEN GEORGE MITCHELL D MAINE AS THEIR PRINCIPAL ENEMY AFTER ALL IT WAS SEN MITCHELL WHO ALMOST SINGLEHANDEDLY DEFEATED PRESIDENT BUSH'S CAPITALGAINS PROPOSAL IN 1989 DESPITE MAJORITY SUPPORT FOR IT IN BOTH THE HOUSE AND SENATE BUT SEN MITCHELL IS NOT THE MAJOR OBSTACLE TO CUTTING THE CAPITALGAINS TAX THAT HONOR BELONGS TO TWO LONGDEAD TAX THEORISTS NAMED ROBERT M HAIG AND HC SIMONS UNTIL THEIR LEGACY IS OVERCOME IT WILL BE DIFFICULT IF NOT IMPOSSIBLE TO ACHIEVE LONGTERM CAPITALGAINS REFORM HAIG WAS A PROFESSOR OF LAW AT COLUMBIA SIMONS A PROFESSOR OF ECONOMICS AT THE UNIVERSITY OF CHICAGO WORKING INDEPENDENTLY IN THE 1920S AND 1930S THEY DEVELOPED WHAT HAS BECOME THE STANDARD DEFINITION OF INCOME FOR TAX PURPOSES WEALTH AT THE BEGINNING OF THE YEAR PLUS CONSUMPTION DURING THE YEAR MINUS WEALTH AT THE END OF THE YEAR IT IS IN SHORT A VERY BROAD DEFINITION OF INCOME THAT INCLUDES INCREASES IN WEALTH AS WELL AS INCOME THE HAIGSIMONS DEFINITION OF INCOME WOULD THEORETICALLY REQUIRE THE FULL TAXATION OF UNREALIZED CAPITAL GAINS ANNUALLY THE IMPUTED RENT ON OWNEROCCUPIED HOUSING AND EVEN INCREASES IN HUMAN CAPITAL RESULTING FROM EDUCATION OR ACQUIRED SKILLS IN OTHER WORDS YOU OUGHT TO BE REQUIRED TO PAY TAXES ON INCREASES IN THE VALUE OF STOCK BONDS AND EVEN PERSONAL RESIDENCES EVERY YEAR EVEN IF THERE HAS BEEN NO SALE OF SUCH ASSETS PEOPLE SHOULD ALSO PAY TAXES ON THE RENT THEY IMPLICITLY PAY TO THEMSELVES FOR THE PRIVILEGE OF LIVING IN THEIR OWN HOUSES TO THE AVERAGE PERSON SUCH NOTIONS SEEM RIDICULOUS EVEN BIZARRE YET THEY ARE ACCEPTED AS GOSPEL AMONG TAX THEORISTS AND USED AS THE BASIS FOR MUCH OF OUR TAX POLICY THE US HAD A CAPITALGAINS TAX BEFORE THE ACADEMICIANS DID THEIR WORK BUT THEIR WORK HELPED LEGITIMIZE AND INSTITUTIONALIZE THE TAX TODAY THE HAIGSIMONS DEFINITION OF INCOME IS VIEWED BY AMERICAN POLICYMAKERS AS THE IDEAL TO WHICH TAX POLICY SHOULD ASPIRE HENCE ANY DEDUCTION CREDIT EXEMPTION OR EXCLUSION THAT CAUSES TAXABLE INCOME TO DEVIATE FROM HAIGSIMONS IS VIEWED AS INHERENTLY UNJUSTIFIABLE INDEED THE GOVERNMENT ANNUALLY PUBLISHES A LIST OF THESE DEVIATIONS AND LABELS THEM AS TAX EXPENDITURES THE PURPOSE IS TO UNDERMINE THE LEGITIMACY OF EVERY ITEM IN THE TAX CODE THAT IS CONTRARY TO HAIGSIMONS AND MAKE IT APPEAR THAT PEOPLE WHO UTILIZE SUCH PROVISIONS TO REDUCE THEIR TAX LIABILITY ARE IN EFFECT RECEIVING A GOVERNMENT CHECK THE BEST EXAMPLE OF THIS WAS THE TAX REFORM ACT OF 1986 WHERE MANY DEDUCTIONS AND LOOPHOLES WERE ELIMINATED IN THE NAME OF PURIFYING THE TAX CODE THIS HAS VERY IMPORTANT POLICY IMPLICATIONS ESPECIALLY WITH REGARD TO CAPITAL GAINS THE HAIGSIMONS DEFINITION OF INCOME IS USED NOT ONLY TO CALCULATE TAX EXPENDITURES BUT ALSO TO ALLOCATE THE BURDEN OR BENEFITS OF ANY PROPOSED TAX CHANGES AMONG INCOME CLASSES SINCE THE BULK OF CAPITAL GAINS IN DOLLAR TERMS TEND TO ACCRUE TO THE WEALTHY THEN BY DEFINITION THE BENEFITS OF ANY CUT IN THE CAPITALGAINS TAX MUST ALSO ACCRUE TO THE WEALTHY THUS UNDER HAIGSIMONS A CUT IN THE CAPITALGAINS TAX ALWAYS APPEARS TO BE A GIVEAWAY TO THE RICH IN FACT A CUT IN THE CAPITALGAINS TAX DOES ABSOLUTELY NOTHING TO INCREASE THE WEALTH OF THOSE WITH ASSETS THAT HAVE INCREASED IN VALUE IE CAPITAL GAINS THEY ALREADY HAVE THE GAINS AND THE WEALTH THE ONLY QUESTION IS WHETHER THEY WILL PAY TAX ON SUCH GAINS BY REALIZING THEM THROUGH SALE OR CONTINUE TO HOLD ON TO THEM INDEFINITELY HAIGSIMONS IS IN MANY SENSES RESPONSIBLE FOR STALLING GROWTH IN OUR ECONOMY THE COMBINATION OF HIGH TAX RATES ON REALIZED CAPITAL GAINS AND THE PROSPECT OF A ZERO RATE ON UNSOLD ASSETS CREATES A POWERFUL LOCKIN EFFECT WHICH STRONGLY ENCOURAGES PEOPLE TO HOLD ONTO ASSETS THAT HAVE INCREASED IN VALUE EVEN IF THEY NO LONGER PERFORM WELL THIS NOT ONLY HURTS INDIVIDUALS WHO COULD EARN HIGHER RETURNS BY REALLOCATING THEIR INVESTMENTS BUT ALSO DEPRIVES POTENTIALLY HIGHERPERFORMING INVESTMENTS OF CAPITAL SUPPORTERS OF THE HAIGSIMONS VIEW WOULD RETORT THAT TAXING CAPITAL GAINS AS ACCRUED WOULD EASILY SOLVE THE LOCKIN PROBLEM BY ELIMINATING ANY TAX ADVANTAGE TO HOLDING AN ASSET YOU WOULD PAY A TAX ON THE INCREASE IN VALUE OF YOUR STOCK WHETHER YOU SOLD IT OR NOT TAXING UNREALIZED GAINS HOWEVER WOULD BE AN ADMINISTRATIVE NIGHTMARE ALSO THERE IS NOT THE SLIGHTEST POSSIBILITY THAT SUCH A TAX POLICY WOULD EVER BE ENACTED BY CONGRESS HOW CAN WE ELIMINATE THE LOCKIN EFFECT CUTTING THE RATE AS THE BUSH ADMINISTRATION PROPOSED WOULD CERTAINLY HELP HOWEVER AS LONG AS TAX THEORISTS CONTINUE TO VIEW LOWER RATES ON CAPITAL GAINS AS A TAX EXPENDITURE THIS WILL BE PROHIBITIVELY DIFFICULT TO DO IN THE CURRENT BUDGETARY CLIMATE IN FACT CONGRESS'S JOINT COMMITTEE ON TAXATION ALREADY COUNTS THE PRESENT 28 MAXIMUM TAX RATE ON CAPITAL GAINS AS A TAX EXPENDITURE COSTING THE FEDERAL GOVERNMENT SOME 4 BILLION A YEAR IN LOST REVENUE THIS FIGURE WILL AUTOMATICALLY RISE NEXT YEAR IF PRESIDENT CLINTON'S INCOMETAX RATE INCREASES ARE IMPLEMENTED SINCE INVESTORS WILL THEN BE SAVING EVEN MORE TAXES BY CONTINUING TO HAVE A 28 TOP RATE ON CAPITAL GAINS WHEN THE TOP RATE ON ORDINARY INCOME RISES FROM 33 TO 40 THE HAIGSIMONS VIEW NOTWITHSTANDING A LOWER CAPITALGAINS RATE IS NOT REALLY A TAX EXPENDITURE AT ALL THE CURRENT TREASURY LOGIC HOLDS THAT A TAX EXPENDITURE IS THE EQUIVALENT FOR THE TAXPAYER OF RECEIVING A GOVERNMENT CHECK BUT SINCE THE LOWER RATE ON CAPITALGAINS CANNOT BE CONSIDERED ANALOGOUS TO RECEIVING SUCH A CHECK IT REALLY CAN'T BE CLASSIFIED AS AN EXPENDITURE THE CAPITALGAINS RATE OUGHT TO BE VIEWED AS PART OF THE TAX STRUCTURE JUST LIKE THE INCOMETAX RATE THE SECOND AND MORE FUNDAMENTAL OBJECTION TO TREATING CAPITAL GAINS AS A TAX EXPENDITURE IS THAT CAPITAL GAINS REALLY ARE NOT INCOME CAPITAL IS LIKE A TREE BEARING FRUIT AND INCOME IS THE FRUIT THAT THE TREE PRODUCES THUS A CAPITAL GAIN IS ANALOGOUS TO GROWTH OF THE TREE WE OUGHT TO TAX ONLY THE FRUIT AND NOT THE TREE THAT PRODUCES IT THESE DAYS WE'RE CUTTING OFF BRANCHES THAT COULD HAVE PRODUCED A LOT OF TAXABLE FRUIT TAXING BOTH DIVIDENDS AND ANY CAPITAL GAIN CONSTITUTES A DOUBLE TAX AT LEAST WHEN APPLIED TO ASSETS THAT PRODUCE FLOWS OF TAXABLE INCOME SUCH AS STOCKS AND BONDS IN FACT SINCE CORPORATE PROFITS ARE ALREADY TAXED TWICE AT THE CORPORATE LEVEL AND AT THE INDIVIDUAL LEVEL ONE COULD SAY THAT A CAPITALGAINS TAX ON CORPORATE STOCK ACTUALLY CONSTITUTES A TRIPLE TAX ALTHOUGH THIS VIEW IS CONSIDERED HERETICAL IN THE WORLD OF HAIGSIMONS AND AT THE TREASURY DEPARTMENT IT HAS IN FACT BEEN THE PREVAILING VIEW THROUGHOUT MOST OF HISTORY IN 1872 THE SUPREME COURT EVEN RULED THAT CAPITAL GAINS ARE NOT INCOME THE CASE WAS GRAY V DARLINGTON AND THE COURT SAID THE MERE FACT THAT PROPERTY HAS ADVANCED IN VALUE BETWEEN THE DATE OF ITS ACQUISITION AND SALE DOES NOT AUTHORIZE THE IMPOSITION OF THE TAX ON THE AMOUNT OF THE ADVANCE MERE ADVANCE IN VALUE IN NO SENSE CONSTITUTES THE GAINS PROFITS OR INCOME SPECIFIED BY THE STATUTE IT CONSTITUTES AND CAN BE TREATED MERELY AS INCREASE OF CAPITAL ALTHOUGH THE 1913 PASSAGE OF THE 16TH AMENDMENT CAUSED THE COURT TO CHANGE ITS VIEW ON THIS MATTER THE PRINCIPLE STILL SURVIVES AS PART OF OFFICIAL GOVERNMENT POLICY IN ITS CALCULATION OF GROSS DOMESTIC PRODUCT THE COMMERCE DEPARTMENT HAS NEVER INCLUDED CAPITAL GAINS AS PART OF PERSONAL INCOME OTHER COUNTRIES REJECT THE TAX MORE WHOLEHEARTEDLY BRITAIN WAS FREE OF A CAPITALGAINS TAX UNTIL THE 1960S WHEN A LABOR PARTY GOVERNMENT INSTALLED ONE AND A SURPRISING NUMBER OF COUNTRIES MANY OF THEM FORMER BRITISH COLONIES CONTINUE TO EXEMPT LONGTERM CAPITAL GAINS ON CORPORATE STOCK FROM THE INCOME TAX A RECENT REVIEW OF 107 COUNTRIES SHOWS THAT 55 IMPOSE NO INCOME TAX AT ALL ON CAPITAL GAINS ON CORPORATE STOCK 31 PROVIDE SOME FORM OF SPECIAL TREATMENT AND ONLY 21 FULLY TAX ALL REALIZED CAPITAL GAINS AS ORDINARY INCOME SEVENTY YEARS AGO TREASURY SECRETARY ANDREW MELLON SAID HE BELIEVED IT WOULD BE SOUNDER TAXATION POLICY GENERALLY NOT TO RECOGNIZE EITHER CAPITAL GAIN OR CAPITAL LOSS FOR PURPOSES OF INCOME TAX IT IS TIME TO TAKE UP THE MELLON PROPOSAL AND ABOLISH THE CAPITALGAINS TAX ONCE AND FOR ALL MR BARTLETT A VISITING FELLOW AT THE CATO INSTITUTE WAS DEPUTY ASSISTANT SECRETARY OF THE TREASURY FOR ECONOMIC POLICY 198893 9306100114 930610 NEW NAME FOR PHILIPS UNIT NEW YORK NORTH AMERICAN PHILIPS CORP CHANGED ITS NAME TO PHILIPS ELECTRONICS NORTH AMERICA CORP THE COMPANY A UNIT OF PHILIPS ELECTRONICS NV OF THE NETHERLANDS SAID THE NAME CHANGE MORE ACCURATELY DEFINES ITS PRODUCTS AND EMPHASIZES ITS ELECTRONICS MANUFACTURING IN NORTH AMERICA THE CHANGE ALSO MORE CLOSELY IDENTIFIES THE CONCERN WITH ITS PARENT COMPANY PHILIPS ELECTRONICS HAS ANNUAL SALES OF MORE THAN 6 BILLION 9306100113 930610 MARKETING & MEDIA MARKETSCAN OVERTHECOUNTER FEMALE CONTRACEPTIVES LOSE SALES AS PRESCRIPTION PRODUCTS GAIN BY KATHLEEN DEVENY WOMEN ARE CHANGING THE TYPE OF CONTRACEPTIVES THEY USE AS THEIR BIRTHCONTROL OPTIONS WIDEN SALES OF OVERTHECOUNTER CONTRACEPTIVES AIMED AT WOMEN INCLUDING CONTRACEPTIVE SPONGES AND SPERMICIDES ARE DECLINING PRECIPITOUSLY AS GROWING NUMBERS OF WOMEN SWITCH TO BIRTHCONTROL PILLS OR OPT FOR SURGICAL STERILIZATION NEW PRESCRIPTION CONTRACEPTIVES SUCH AS NORPLANT AN IMPLANTED DEVICE DESIGNED TO WORK FOR UP TO FIVE YEARS AND DEPOPROVERA AN INJECTABLE CONTRACEPTIVE THAT LASTS FOR THREE MONTHS ARE ALSO BEGINNING TO DRAW CONSUMERS I THINK THE GROWTH OF LONGACTING CONTRACEPTIVES IS THE BEST EXPLANATION FOR THE DECLINE OF THE OVERTHECOUNTER PRODUCTS SAYS HEMANT K SHAH OF HKS & CO A RESEARCH FIRM IN WARREN NJ THE COMPANIES ARE AGGRESSIVELY PROMOTING THEM AND WE HAVEN'T HEARD ANYTHING ABOUT ADVERSE REACTIONS DATA GATHERED FROM DRUGSTORES AND SUPERMARKETS BY TOWNEOLLER & ASSOCIATES A UNIT OF CHICAGOBASED INFORMATION RESOURCES INC UNDERSCORE WOMEN'S SHIFTING HABITS SALES OF NONPRESCRIPTION FEMALE CONTRACEPTIVES DECLINED 10 TO 145 MILLION DURING THE THREE MONTHS ENDED APRIL 30 UNIT SALES FELL 13 NEARLY EVERY BRAND IN THE CATEGORY SUFFERED SALES OF TODAY SPONGES MADE BY THE WHITEHALL LABORATORIES UNIT OF AMERICAN HOME PRODUCTS CORP DECLINED 13 TO 42 MILLION DURING THE THREEMONTH PERIOD SALES OF GYNOL II CONTRACEPTIVE JELLY MADE BY JOHNSON & JOHNSON'S ORTHO PHARMACEUTICAL UNIT DROPPED 10 TO 24 MILLION SALES OF JOHNSON & JOHNSON'S CONCEPTROL INSERTS WERE FLAT THERE HAS BEEN A LOT OF NEWPRODUCT DEVELOPMENT ON THE PRESCRIPTION SIDE SAYS KATHRYN GRIFFIE OF KLINE & CO A MARKETRESEARCH FIRM IN FAIRFIELD NJ MS GRIFFIE ALSO OFFERS ANOTHER POSSIBLE EXPLANATION FOR THE DECLINING SALES GIVEN MOUNTING CONCERNS OVER SEXUAL TRANSMISSION OF THE VIRUS THAT CAUSES AIDS ABSTINENCE MAY ALSO BE INCREASING SHE SAYS WOMEN AREN'T USING BIRTH CONTROL LESS OFTEN INDEED PUBLICHEALTH OFFICIALS SAY CONTRACEPTIVE USE HAS BEEN INCREASING FOR DECADES THREE OUT OF FOUR WOMEN WHO ARE SEXUALLY ACTIVE REPORT USING SOME FORM OF BIRTH CONTROL ACCORDING TO A RECENT SURVEY OF 4000 WOMEN AGED 18 TO 50 SPONSORED BY UPJOHN CO THE MOST WIDELY USED METHOD MALE OR FEMALE STERILIZATION WHICH WAS CITED BY NEARLY ONETHIRD OF THE SEXUALLY ACTIVE WOMEN BIRTHCONTROL PILLS WERE THE SECOND MOST COMMON METHOD USED BY 24 OF THE WOMEN ANOTHER 20 SAID THEY USED BARRIER METHODS SUCH AS A DIAPHRAGM AMERICANS AREN'T PRACTICING SAFER SEX IN GROWING NUMBERS EITHER UNIT SALES OF CONDOMS THE BEST METHOD APART FROM ABSTINENCE FOR PREVENTING TRANSMISSION OF THE AIDS VIRUS ARE LACKLUSTER UNIT SALES OF CONDOMS IN DRUGSTORES AND SUPERMARKETS WERE FLAT DURING THE THREEMONTH PERIOD ACCORDING TO TOWNEOLLER BUT THE POPULARITY OF HIGHERPRICED CONDOMS WITH SPERMICIDES HELPED INCREASE DOLLAR SALES BY 8 TO 591 MILLION AND MAY HURT SALES OF SOME SPERMICIDES WHICH ARE SOMETIMES USED IN CONJUNCTION WITH BARRIER METHODS THOUGH THE FOOD AND DRUG ADMINISTRATION RECENTLY APPROVED A FEMALE CONDOM FOR SALE DIRECTLY TO CONSUMERS THAT PRODUCT WON'T BE WIDELY AVAILABLE UNTIL LATER THIS YEAR INDUSTRY ANALYSTS SAY THE FEMALE CONDOM WHICH WILL BE MARKETED IN THE US UNDER THE REALITY BRAND BY WISCONSIN PHARMACAL CO IS UNLIKELY TO HAVE A DRAMATIC EFFECT ON THE TOTAL CONTRACEPTIVES MARKET THAT'S BECAUSE THE PRODUCT ESSENTIALLY A POUCH MADE OF POLYURETHANE WITH FLEXIBLE RINGS AT EACH END IS DIFFICULT TO USE AND WILL BE MORE EXPENSIVE THAN MALE CONDOMS IN DRUGSTORES THE REALITY PRODUCTS WILL COST ABOUT 250 EACH MARKETERS OF THE NONPRESCRIPTION CONTRACEPTIVES BLAME DECLINING SALES PRIMARILY ON INCREASED USE OF ORAL CONTRACEPTIVES WHICH ARE MORE EFFECTIVE IN PREVENTING PREGNANCY THAN THE SPONGES OR SPERMICIDES LAST YEAR SALES OF PRESCRIPTION BIRTHCONTROL PILLS IN DRUGSTORES INCREASED 6 TO 11 BILLION ACCORDING TO IMS AMERICA LTD A UNIT OF DUN & BRADSTREET CORP SINCE 1988 WHEN MARKETERS SAY DEMAND REALLY BEGAN INCREASING BIRTHCONTROL PILL SALES HAVE SOARED 26 ACCORDING TO IMS THAT HEALTHY GROWTH HAS BEEN FUELED BY THE FDA'S ACKNOWLEDGEMENT THAT THE PILL CAN BE PRESCRIBED FOR HEALTHY NONSMOKING WOMEN OVER THE AGE OF 35 PREVIOUSLY THAT GROUP WAS CONSIDERED AT INCREASED RISK OF ADVERSE EFFECTS FROM THE PILLS AND PUBLIC CONCERN OVER HEALTH PROBLEMS LINKED TO EARLY VERSIONS OF THE PILL HAVE WANED AS PILL MAKERS HAVE DECREASED THE LEVELS OF HORMONES THAT CONTROL OVULATION IN THEIR PRODUCTS REDUCING THE RISKS OF SOME SERIOUS SIDE EFFECTS MARKETERS HAVEN'T OVERLOOKED THE OPPORTUNITY SINCE LAST FALL JOHNSON & JOHNSON HAS LAUNCHED THREE NEW LOWDOSE BIRTHCONTROL PILLS CALLED ORTHOCYCLEN ORTHO TRICYCLEN AND ORTHOCEPT AND BACKED THEM WITH AN AGGRESSIVE MARKETING CAMPAIGN AIMED AT DOCTORS THE GROWING NUMBERS OF WOMEN WHO ARE OPTING FOR SURGICAL STERILIZATION ARE REFLECTED IN FIGURES FROM THE NATIONAL CENTER FOR HEALTH STATISTICS IN 1982 THE CENTER REPORTS 233 OF WOMEN BETWEEN THE AGES OF 15 AND 44 WHO PRACTICE CONTRACEPTION WERE STERILIZED BY 1988 THE MOST RECENT YEAR FOR WHICH GOVERNMENT DATA ARE AVAILABLE THE LEVEL HAD REACHED 28 PUBLICHEALTH OFFICIALS SAY THE TREND IS PARTLY DUE TO THE FACT THAT WOMEN ARE HAVING FEWER CHILDREN AND COMPRESSING THEIR CHILDBEARING YEARS IN ADDITION TUBAL LIGATION IS NOW FREQUENTLY PERFORMED AS AN OUTPATIENT PROCEDURE AND IS OFTEN COVERED BY MEDICAL INSURANCE TWO NEW LONGERACTING PRESCRIPTION CONTRACEPTIVES NORPLANT AND DEPOPROVERA MAY ALSO BE HURTING SALES OF THE NONPRESCRIPTION CONTRACEPTIVE PRODUCTS NORPLANT HAILED AS THE FIRST TRULY NEW BIRTHCONTROL OPTION FOR WOMEN SINCE THE PILL CAME ON THE MARKET 30 YEARS AGO HAS BEEN MARKETED FOR PRESCRIPTION SALES IN THE US SINCE 1991 THE DEVICE SOLD IN THE US BY THE WYETHAYERST LABORATORIES UNIT OF AMERICAN HOME PRODUCTS CONTAINS THE HORMONE PROGESTIN THE HORMONES ARE RELEASED INTO THE BLOODSTREAM FROM SIX THIN RUBBER RODS THAT ARE INSERTED INTO A SMALL INCISION IN THE UPPER ARM EFFECTIVE WITHIN 24 HOURS AFTER THE RODS ARE INSERTED BY A PHYSICIAN THE COMPANY SAYS THE DEVICE PREVENTS PREGNANCY FOR UP TO FIVE YEARS ONCE THE RODS ARE REMOVED THE COMPANY SAYS FERTILITY QUICKLY RETURNS WYETHAYERST SAYS THAT 600000 AMERICAN WOMEN HAVE ALREADY HAD NORPLANT INSERTS WHICH COST 365 NOT INCLUDING DOCTORS' FEES AND THAT THE NUMBER IS INCREASING RAPIDLY TO BUILD SALES THE COMPANY HAS PROVIDED ONEDAY TRAINING SESSIONS TO SOME 26000 HEALTHCARE PROVIDERS ITS SALES FORCE ALSO HAS BLANKETED DOCTORS' OFFICES NATIONWIDE WITH BOOKLETS AND PAMPHLETS IN ADDITION THE COMPANY IS TAKING ITS MESSAGE DIRECTLY TO CONSUMERS THREEPAGE ADS FOR THE PRODUCT THAT TOUT ITS EFFECTIVENESS AND CONVENIENCE ARE RUNNING IN SUCH CONSUMER MAGAZINES AS MADEMOISELLE VOGUE AND WORKING MOTHER EARLIER THIS YEAR UPJOHN BEGAN MARKETING THE FIRST INJECTABLE FORM OF BIRTH CONTROL UNDER THE BRAND NAME DEPOPROVERA THE COMPANY SAYS THE DRUG PROVIDES CONTRACEPTIVE PROTECTION FOR UP TO THREE MONTHS AND IS 99 EFFECTIVE IN PREVENTING PREGNANCY ALTHOUGH IT IS TOO SOON TO JUDGE CONSUMER ACCEPTANCE OF THE PRODUCT INDUSTRY ANALYSTS SAY IT IS LIKELY TO FURTHER CUT INTO SALES OF THE NONPRESCRIPTION CONTRACEPTIVES EVEN MARKETERS OF THE NONPRESCRIPTION PRODUCTS CONCEDE THAT SALES ARE LIKELY TO CONTINUE TO DECLINE WE STILL FEEL VERY CONFIDENT ABOUT THE TODAY SPONGE SAYS A SPOKESWOMAN FOR AMERICAN HOME PRODUCTS BUT WE THINK THE DECLINING SALES TREND IS LIKELY TO CONTINUE 9306100112 930610 MARKETING & MEDIA ADVERTISING LINTAS INVITED TO DEFEND ITS HOLD AS IBM PUTS PC ADS UP FOR GRABS BY KEVIN GOLDMAN IBM UNEXPECTEDLY PUT ITS ESTIMATED 20 MILLION ACCOUNT FOR PERSONAL COMPUTER ADVERTISING UP FOR REVIEW RAISING THE CHANCES THAT OTHER IBM ACCOUNTS COULD GO INTO PLAY AND PROVIDING A NEW HEADACHE FOR INTERPUBLIC GROUP'S LINTAS NEW YORK THE MOVE COMES AFTER IBM PERSONAL COMPUTER CO RECENTLY WAS GRANTED AUTONOMY OVER ITS OWN ADVERTISING AWAY FROM THE OVERSIGHT OF PARENT INTERNATIONAL BUSINESS MACHINES CORP THE PC UNIT INFORMED LINTAS EXECUTIVES OF THE REVIEW IN A LETTER TUESDAY BEFORE DISCUSSING THE MATTER WITH THEM IN PERSON SAID ONE EXECUTIVE WITH KNOWLEDGE OF THE MATTER THE REVIEW ISN'T CONFINED TO THE US IBM SAYS IT IS ALSO PLACING ITS OVERSEAS PERSONAL COMPUTER ACCOUNT IN REVIEW LINTAS SPLITS THE EUROPEAN ACCOUNT WITH SWITZERLAND'S GGK AN IBM SPOKESWOMAN SAYS THE REVIEW IS UNDER WAY BECAUSE WE'RE LOOKING FOR AN ADVERTISING CAMPAIGN TO COINCIDE WITH THE VIGOR OF OUR BRAND STRATEGY WE'RE LOOKING FOR AN AGENCY TO PROVIDE US WITH A FRESH LOOK NO OTHER AGENCIES HAVE BEEN CONTACTED AND THE SPOKESWOMAN SAYS IBM HAS NO AGENCIES IN MIND YET SHE CHARACTERIZES THE REVIEW AS AN OPEN ONE EACH AGENCY WILL BE ASKED TO PRODUCE CREATIVE WORK BOTH FOR PRINT AND TELEVISION IBM IS EXPECTED TO COMPLETE THE REVIEW BY SEPT 1 THE COMPUTER FIRM EMPHASIZES THAT THE REVIEW IS CONFINED TO PERSONAL COMPUTERS LINTAS HANDLES NOT ONLY PERSONAL COMPUTERS BUT ALSO OTHER ASPECTS OF IBM PRODUCTS INCLUDING LARGER MACHINES LINTAS WHICH HAS BEEN INVITED TO DEFEND ITS HOLD ON THE BUSINESS IS ONE OF THREE AGENCIES SERVING IBM'S MASSIVE ADVERTISING EFFORT DOMESTICALLY WELLS RICH GREENE BDDP HANDLES THE COMPANY'S CORPORATE ADVERTISING AND GREY ADVERTISING'S GREY DIRECT WAS HIRED IN JANUARY TO HANDLE SOME OF IBM'S NEW DOMESTIC MAILORDER BUSINESS LINTAS WAS AWARDED IBM'S PC BUSINESS ABOUT FIVE YEARS AGO IN SHOPPING FOR NEW ADVERTISING IDEAS THE IBM DIVISION TOLD LINTAS IT WANTS TO SEPARATE ITSELF FROM OTHER IBM BUSINESSES AND THEREFORE WANTS ITS OWN AGENCY ONE INSIDER SAID AN IBM EXECUTIVE C RAY FREEMAN WAS HANDED RESPONSIBILITY FOR WORLDWIDE PC ADVERTISING IN APRIL WHEN HE WAS PROMOTED TO BE THE UNIT'S COMMUNICATIONS VICE PRESIDENT HE WAS ASSOCIATED WITH ONE OF THE MOST IDENTIFIABLE IBM CAMPAIGNS WHEN HE WAS GENERAL MANAGER AT LORD GELLER FEDERICO EINSTEIN WHICH CREATED THE LITTLE TRAMP CHARLIE CHAPLINESQUE SERIES IN THE MID1980S EVEN THOUGH SUBSEQUENT AD CAMPAIGNS WEREN'T AS MEMORABLE THE REVIEW DOESN'T APPEAR TO BE PROMPTED BY SAGGING SALES DANIEL MANDRESH AN ANALYST WITH MERRILL LYNCH SAYS IBM'S PERSONAL COMPUTER SHIPMENTS WERE UP 40 IN THE FIRST QUARTER BOB DJURDJEVIC PRESIDENT OF ANNEX RESEARCH A PHOENIX CONSULTING FIRM SAYS IBM HAS DONE A GOOD JOB OF LATE IN MARKETING ITS PS/2 LINE RESORTING TO UNPRECEDENTED PRICE SLASHING BUT THE COMPANY NEVERTHELESS HAS A LOT OF GROUND TO MAKE UP HE NOTES THE BIG BLUE REVIEW COMES ONE WEEK AFTER LINTAS RECEIVED IBM'S PERSONAL COMPUTER ADVERTISING IN MEXICO AND THE AGENCY STILL HANDLES SOME IBM BUSINESS IN ABOUT 10 OTHER COUNTRIES INCLUDING ITALY FRANCE AND GERMANY THE REVIEW MEANS AN INTENSE SUMMER FOR LINTAS'S NEW YORK OFFICE IN ADDITION TO SCRAMBLING TO HOLD ON TO IBM LINTAS MUST RESCUE DIET COKE THERE AREN'T ANY DIET COKE ADS CURRENTLY ON THE AIR AS THE SIXMONTHOLD TASTE IT ALL CAMPAIGN FIZZLED AND IS BEING REVISED IN APRIL WHEN MR FREEMAN WAS PROMOTED TO OVERSEEING THE PC BUSINESS'S WORLDWIDE ADVERTISING HE TOLD ADVERTISING AGE THAT HE WAS CONSIDERING AN AD AGENCY CONSOLIDATION OF IBM'S 100 MILLION GLOBAL ACCOUNT BUT HE SAID THAT HE WASN'T LISTENING TO OTHER AGENCY PITCHES AND THAT HE WANTED LINTAS TO KEEP THEIR HANDS ON THE KEYBOARD THE REVERSAL YESTERDAY ADDED TO AN AIR OF UNCERTAINTY OVER IBM'S AD ACCOUNTS LAST MONTH THE ARMONK NY COMPANY NAMED OUTSIDER ABBY KOHNSTAMM TO THE NEWLY CREATED POSITION OF VICE PRESIDENT FOR CORPORATE MARKETING SHE JOINED IBM FROM AMERICAN EXPRESS WHERE SHE WAS SENIOR VICE PRESIDENT FOR CARDMEMBER MARKETING SHE BEGAN HER JOB ON MONDAY ONE DAY BEFORE THE LETTER WAS GIVEN TO LINTAS INFORMING IT OF THE REVIEW IBM PERSONAL COMPUTER ADS HAVE BEEN MISSING RECENTLY FROM TELEVISION WHILE THE CAMPAIGN HAS CONFINED ITSELF TO PRINT THE PRINT ADS HAVE BEEN PUSHING THE PS/2 AS WELL AS THE WELLRECEIVED NOTEBOOK MODEL KNOWN AS THE THINKPAD TAGLINE ITS MOTHER WAS A MAINFRAME ITS FATHER WAS A MASERATI LINTAS COULD TAKE COMFORT IN IBM'S PUBLIC POSITION THAT THE REVIEW IS STRICTLY CONFINED TO THE PC COMPANY BUSINESS SAYS THE IBM SPOKESWOMAN INDEED A LINTAS EXECUTIVE PRIVATELY PREDICTS VICTORY ALTHOUGH CONCEDES IT WILL BE AN UPHILL BATTLE BECAUSE INCUMBENTS RARELY WIN ONCE AN ACCOUNT IS THROWN INTO REVIEW ONE NOTABLE EXCEPTION IS LEO BURNETT'S RETAINING OLDSMOBILE EARLIER THIS YEAR LINTAS PRIVATELY DOESN'T FORESEE ANY LAYOFFS EVEN IF IT ULTIMATELY LOSES THE BIG BLUE ACCOUNT EVEN THOUGH THE IBM PERSONAL COMPUTER ACCOUNT IS RESPONSIBLE FOR A LITTLE MORE THAN 20 OF LINTAS'S NEW YORK BILLINGS SAYS ONE PERSON WITH KNOWLEDGE OF THE SITUATION AND LINTAS SAYS IT IS ONLY ONE FACET OF THE IBM BUSINESS THAT IS IN REVIEW WHILE THE AGENCY MAINTAINS OTHER PARTS OF THE MULTIMILLION DOLLAR ACCOUNT THE INEVITABLE HAPPENED ON MADISON AVENUE YESTERDAY THE AD INDUSTRY'S MOST PROMINENT FORECASTER DOWNGRADED HIS 1993 OUTLOOK AFTER TWO ROSY PREDICTIONS THAT ANALYSTS SAID WERE OUT OF LINE EVEN WITH THE REVISED FIGURES ANALYSTS STILL SAY THE PREDICTIONS BY ROBERT J COEN DIRECTOR OF FORECASTING AT INTERPUBLIC GROUP'S MCCANNERICKSON ARE TOO OPTIMISTIC MR COEN CUT HIS 1993 ESTIMATE FOR AD SPENDING IN THE US TO 61 GROWTH FROM THE 69 HE FORECAST IN DECEMBER AND THAT WAS A DOWNWARD REVISION FROM THE 75 HE DECLARED LAST JUNE THE NEW ESTIMATE HAS DOMESTIC AD SPENDING PEGGED AT 1393 BILLION THE REASONS FOR MR COEN'S TRIMMING OF HIS ESTIMATE INCLUDES A DELAY IN THE ECONOMIC RECOVERY NEVERTHELESS JIM DOUGHERTY AN ANALYST WITH DEAN WITTER REYNOLDS SAYS MR COEN'S NUMBERS REMAINS TOO HIGH MR DOUGHERTY SAYS HE WILL STICK WITH HIS ESTIMATE OF A 5 INCREASE IN DOMESTIC AD SPENDING MR COEN FORECASTS A 4 INCREASE FOR THE FOUR TELEVISION NETWORKS TO 107 BILLION AN INCREASE OF 10 FOR THE CABLE NETWORKS TO 19 BILLION A 32 INCREASE FOR NEWSPAPERS TO 37 BILLION AND A 72 INCREASE IN MAGAZINES TO 75 BILLION 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 9306100111 930610 FIRST FIDELITY UNIT HEADS NAMED LAWRENCEVILLE NJ FIRST FIDELITY BANCORP SAID TWO SENIOR EXECUTIVES EACH WERE NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF ITS NEW CONNECTICUT AND NEW YORK SUBSIDIARIES THOMAS H O'BRIEN JR 50 YEARS OLD AND KENNETH H THORN 44 WERE NAMED TO THE POSITIONS AT UNION TRUST CO STAMFORD CONN AND FIRST FIDELITY BANK NA NEW YORK RESPECTIVELY BOTH WERE EXECUTIVE VICE PRESIDENTS AT FIRST FIDELITY THE NEW YORK UNIT POSITIONS ARE NEW THE UNION TRUST POSTS HAD BEEN VACANT TONY TERRACIANO FIRST FIDELITY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER WILL BE CHIEF EXECUTIVE OF BOTH UNITS 9306100110 930610 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE 111NATION GENERAL AGREEMENT ON TARIFFS AND TRADE CHOSE PETER SUTHERLAND OF IRELAND TO BE DIRECTORGENERAL JULY 1 SUCCEEDING ARTHUR DUNKEL OF SWITZERLAND WHO HAS HELD THE POST SINCE 1980 A 47YEAROLD LAWYER AND CHAIRMAN OF ALLIED IRISH BANKS MR SUTHERLAND FROM 198589 WAS EUROPEAN COMMUNITY COMPETITION COMMISSIONER AND PLAYED A BIG ROLE IN CREATING THE EC SINGLE MARKET HE PREVIOUSLY WAS IRELAND'S ATTORNEY GENERAL THE LATIN AMERICAN DELEGATION WITHDREW ITS CANDIDATE JULIO LACARTEMURO OF URUGUAY BUT FAULTED THE SELECTION PROCESS SINCE GATT WAS CREATED AFTER WORLD WAR II ALL THREE OF ITS CHIEFS HAVE BEEN EUROPEANS LATIN COUNTRIES NOTED THEY HAVE SLASHED IMPORT BARRIERS AND OPENED THEIR ECONOMIES WHILE THE INDUSTRIAL POWERS DITHERED ON WORLD TRADE NEGOTIATIONS MR SUTHERLAND'S FIRST TASK WILL BE TO PROD TRADELIBERALIZATION TALKS STALLED SINCE 1990 BY A TRANSATLANTIC DISPUTE OVER PROTECTED INDUSTRIES A PACT COULD PUMP UP THE FLAGGING WORLD ECONOMY CREATE MILLIONS OF JOBS AND AID MARKET REFORMS IN EASTERN EUROPE AND DEVELOPING COUNTRIES COMPUTER SOFTWARE PIRACY COST EUROPEAN INDUSTRY AND GOVERNMENT AT LEAST 29 BILLION LAST YEAR THE SOFTWARE PUBLISHERS ASSOCIATION ESTIMATED EUROPEAN REVENUE OF THE GROUP'S MEMBERS HAS BEEN HALVED BECAUSE COMPUTER PROGRAMS WERE COPIED WITHOUT PAYING THE PUBLISHERS' LICENSE FEES WHILE PUBLISHERS' 1992 SOFTWARE SALES TOTALED 169 BILLION REVENUE LOST TO PIRACY EXCEEDED 159 BILLION AND SALES LOST BY SOFTWARE DISTRIBUTORS AND RETAILERS TOTALED 922 MILLION ALL OF WHICH WOULD HAVE PRODUCED 431 MILLION IN TAX RECEIPTS BAHRAIN GOT ITS FIRST COPYRIGHT LAW RESPONDING TO GLOBAL DEMANDS PARTICULARLY FROM THE US TO CURB PIRATED FILMS COMPUTER SOFTWARE TAPED MUSIC AND BOOKS PIRACY OF INTELLECTUAL PROPERTY IS A BIG BUSINESS IN THE PERSIAN GULF THE LAW ISSUED BY BAHRAIN'S EMIR PROHIBITS UNLICENSED COMMERCIAL USE AND REPRODUCTION AND IMPORTS AND SALES OF LITERARY ARTISTIC AND SCIENTIFIC WORKS VIOLATORS MAY BE FINED JAILED AND ORDERED TO COMPENSATE COPYRIGHT OWNERS COPYRIGHT PROTECTION IS GRANTED FOR AS LONG AS 50 YEARS AFTER THE DEATH OF AN AUTHOR IN COMPLIANCE WITH A GLOBAL PROTOCOL ON INTELLECTUAL PROPERTY ABOUT 400000 STRIKING COAL MINERS IN UKRAINE REJECTED A PAYINCREASE OFFER HOLDING OUT FOR POLITICAL CHANGES AND ECONOMIC REFORM THAT POSE A SERIOUS CHALLENGE TO PRESIDENT LEONID KRAVCHUK LEADERS OF THE STRIKE WHICH BEGAN MONDAY SAID 90 OF 120 MINES IN THE EASTERN COAL REGION WERE SHUT WHILE THE GOVERNMENT SAID 113 WERE IDLE AND 71 FACTORIES IN THE AREA INCLUDING A MILITARY PLANT HAD JOINED THE STRIKE OR PLANNED TO DO SO THE RAPIDLY SPREADING WALKOUT DRIVEN BY ECONOMIC COLLAPSE INTENSIFIED PRESSURE ON THE GOVERNMENT AS IT STRUGGLES TO HOLD PAY AND PRICES IN LINE THE FINANCE PANEL OF GERMANY'S BUNDESRAT THE UPPER HOUSE OF PARLIAMENT RECOMMENDED REJECTING BUSINESS TAX REVISIONS CLEARED LAST MONTH BY THE BUNDESTAG THE LOWER HOUSE REJECTION BY THE FULL BUNDESRAT WOULD SEND THE MEASURE TO MEDIATION THE BILL WOULD CUT TO 44 BOTH THE 50 CORPORATE TAX ON RETAINED PROFITS AND THE 53 TOP BUSINESSINCOME TAX AND THE LEVY ON DISTRIBUTED PROFITS TO 30 FROM 36 LOST REVENUE WOULD BE OFFSET BY LOWER DEPRECIATION RATES THE FINANCE COMMITTEE SAID THE MEASURE VIOLATES THE CONSTITUTIONAL PRINCIPLE OF EQUAL TREATMENT IN TAXATION AS OTHER RATES WOULD REMAIN HIGHER SINGLE OLDER BRITISH WOMEN HAVE HAD A BABY BOOM A GOVERNMENT SURVEY FOUND AMONG WOMEN OVER 40 WHO GAVE BIRTH IN 1991 THOSE WHO WEREN'T MARRIED ACCOUNTED FOR 25 UP FROM 11 A DECADE EARLIER WOMEN ARE NOW MORE IN CONTROL OF THEIR LIVES AND THEY TEND TO DELAY HAVING CHILDREN A GOVERNMENT SPOKESMAN SAID THERE IS ALSO A HIGHER INCIDENCE OF MARRIAGE BREAKUP IN THAT AGE GROUP ALMOST 30 OF CHILDREN IN BRITAIN ARE BORN TO UNMARRIED WOMEN OF ALL AGE GROUPS CHINESE INDUSTRIAL PRODUCTION LAST MONTH SOARED 27 FROM A YEAR EARLIER THE BIGGEST JUMP SINCE 1978 THE DATA PROMPTED BEIJING TO WARN IT MUST CONTROL THE BOOMING SECTOR AND PREVENT ECONOMIC OVERHEATING THE GOVERNMENT ALSO REPORTED RAPID GROWTH IN PROBLEMS FROM UNCHECKED DEVELOPMENT IT CITED A WIDENING GAP BETWEEN COASTAL AND LESSDEVELOPED INLAND AREAS WHERE INDUSTRIAL OUTPUT ROSE BETWEEN JUST 2 AND 8 AND IT SAID DEMAND FOR ENERGY TRANSPORTATION AND RAW AND PROCESSED MATERIALS IS FAR OUTSTRIPPING SUPPLY AND CAUSING HEFTY PRICE INCREASES MEANWHILE CHINA REESTABLISHED THE ELECTRONICS INDUSTRY MINISTRY UNDOING ITS 1988 MERGER WITH THE MACHINERY MINISTRY TO PROMOTE HIGHTECH INDUSTRIES ESPECIALLY COMPUTERS AND TELECOMMUNICATIONS JORDAN INCREASED PRICES OF SOME OIL PRODUCTS INCLUDING KEROSENE BY ABOUT 20 CONTINUING AN ECONOMIC AUSTERITY PROGRAM BEGUN IN 1989 THE COST OF LIVING HAS SINCE TRIPLED A HEAT WAVE IN BRITAIN EXPANDED THE TOWER BRIDGE DRAWBRIDGE OVER THE RIVER THAMES BRIEFLY JAMMING THE SPAN WHICH COULDN'T BE CLOSED THE UNSEASONABLY HIGH TEMPERATURES ALSO MELTED ASPHALT ON PART OF THE MAIN ROAD TO LONDON'S HEATHROW AIRPORT DELAYING TRAFFIC AS LONG AS TWO HOURS 9306100109 930610 FOREIGN EXCHANGE DOLLAR FINISHES FIRMER AS COMMENTS FROM SOROS TAKE THEIR TOLL ON MARK BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR GAINED ON THE MARK AFTER NOTED INTERNATIONAL INVESTOR GEORGE SOROS SAID HE EXPECTS THE MARK TO DROP AS GERMAN INTEREST RATES HEAD LOWER THE DOLLAR FINISHED MOSTLY FIRMER AGAINST OTHER MAJOR CURRENCIES AS WELL ABOUT MIDDAY THURSDAY IN TOKYO THE DOLLAR WAS TRADING AT 106 YEN AND AT 16385 MARKS IN AN OPEN LETTER TO THE TIMES NEWSPAPER OF LONDON MR SOROS WROTE THAT HE EXPECTS THE MARK TO FALL AGAINST ALL MAJOR CURRENCIES HE ADDED EVENTUALLY SHORTTERM INTEREST RATES WILL HAVE TO BE LOWERED WHETHER THE BUNDESBANK LIKES IT OR NOT TRADERS SAID THAT ALTHOUGH THE COMMENTS WEREN'T SURPRISING MANY MARKET PARTICIPANTS HAVE HELD THE SAME OUTLOOK FOR A NUMBER OF MONTHS THE FACT THAT THEY CAME FROM MR SOROS AND CAME AMID A PAUCITY OF OTHER NEWS GAVE THEM THEIR IMPACT IT'S VERY CONVENTIONAL WISDOM BUT HE ALSO HAS 1 BILLION TO PLAY AROUND WITH SAID LYNN TIERNEY VICE PRESIDENT AT SHAWMUT BANK OF BOSTON NA MR SOROS BY SOME ACCOUNTS MADE MORE THAN 1 BILLION IN SUCCESSFULLY BETTING AGAINST THE POUND IN LAST SEPTEMBER'S EUROPEAN CURRENCY CRISIS THE SOROS LETTER LIFTED THE DOLLAR THROUGH SEVERAL KEY TECHNICAL RESISTANCE LEVELS AGAINST THE MARK WHICH TRIGGERED MORE DOLLAR BUYING SAID KEVIN WEIR A TRADER AT CANADIAN IMPERIAL BANK OF COMMERCE IN TORONTO BUT THE US CURRENCY PROVED UNABLE TO HOLD ALL ITS GAINS LIGHT PROFITTAKING AND COMMENTS FROM SENIOR BUNDESBANK OFFICIALS SUGGESTING THAT GERMAN RATES WON'T FALL IN THE NEAR FUTURE PROMPTED SOME DOLLARSELLING DEALERS SAID IT WOULD BE COUNTERPRODUCTIVE IF LONGTERM GERMAN INTEREST RATES ROSE BECAUSE OF CUTS IN SHORTTERM RATES BUNDESBANK VICE PRESIDENT HANS TIETMEYER SAID AT AN ECONOMICS CONFERENCE IN FRANKFURT WHAT WE DON'T WANT IS FOR SHORTTERM RATES TO GO DOWN AND LONGTERM RATES TO GO UP HE SAID THIS MIGHT OCCUR IF FALLING SHORTTERM RATES SPARKED EXPECTATIONS OF RISING INFLATION IN GERMANY DRIVING UP LONGTERM BOND RATES THE COMMENTS STABILIZED THE MARK SAID SIMON FISCHER VICE PRESIDENT AT SWISS BANK CORP BUT MR WEIR NOTED THAT THE LATEST COMMENTS DON'T REPRESENT A SIGNIFICANT DEPARTURE FROM RECENT REMARKS BY TOP BUNDESBANK OFFICERS AS GERMAN RATES HAVE DROPPED IN THE PAST MONTHS THE WHOLE WAY DOWN THEY'VE BEEN SAYING THAT INFLATION IS JOB ONE NONETHELESS THEY'VE BEEN CUTTING HE SAID THE DOLLAR'S ADVANCE AGAINST THE MARK ALSO HELPED PULL THE US CURRENCY UP AGAINST THE YEN MS TIERNEY SAID BECAUSE OF A HOLIDAY IN JAPAN WEDNESDAY THE YEN WASN'T A MAJOR FOCUS OF MARKET ACTIVITY DURING THE DAY DEALERS SAID IN CROSS OR NONDOLLAR TRADING THE POUND ROSE AGAINST THE MARK THE SOROS LETTER WAS THE PRIMARY FACTOR FOR THE GAIN PLAYERS SAID 9306100108 930610 WHAT'S NEWS WORLDWIDE THE US IS POISED TO SEND HUNDREDS OF ARMED PEACEKEEPERS TO MACEDONIA THE CLINTON ADMINISTRATION IS EXPECTED TO OFFER AS EARLY AS TODAY TO SEND THE FIRST US GROUND TROOPS TO THE FORMER YUGOSLAVIA OFFICIALS SAID THE FULLY ARMED PEACEKEEPERS WOULD SERVE AS PART OF A UN FORCE CURRENTLY NUMBERING ABOUT 800 IN MACEDONIA THEIR MISSION WOULD BE TO MONITOR ETHNIC UNREST INSIDE MACEDONIA AND ANY INCURSIONS SOUTHWARD BY SERBS ALTHOUGH THE CLINTON ADMINISTRATION IS RELUCTANT TO SAY SO THE US CONTINGENT WILL SERVE AS A TRIPWIRE A WARNING TO THE SERBS THAT THEIR AGGRESSION WOULD TRIGGER A US MILITARY RESPONSE PREVIOUSLY THE ADMINISTRATION SAID ONLY THAT IT WAS CONSIDERING A VARIETY OF MEASURES TO STOP THE BOSNIAN FIGHTING FROM SPREADING TO MACEDONIA INCLUDING THE POSSIBILITY OF SENDING TROOPS CLINTON'S APPROVAL RATING HAS DROPPED SHARPLY IN THE PAST TWO MONTHS BUT AMERICANS SEEM PREPARED TO UPGRADE THEIR OPINION IF THE PRESIDENT LEARNS FROM HIS MISTAKES A WALL STREET JOURNAL/NBC NEWS POLL SHOWS JUST 41 OF THOSE SURVEYED SAY THEY APPROVE OF THE JOB CLINTON IS DOING DOWN FROM 52 IN APRIL THE PENTAGON DISPATCHED SEVERAL HEAVILY ARMED AC130 SPECTRE GUNSHIP AIRCRAFT TO SOMALIA IN RESPONSE TO A WEEKEND AMBUSH THAT KILLED 23 UN SOLDIERS THE SOMALI CAPITAL WAS BRACING FOR AN ATTACK BY UN TROOPS ON THE FORCES OF CLAN LEADER AIDID THE WHITE HOUSE SAID IT WON'T IMMEDIATELY CHALLENGE TUESDAY'S FEDERAL COURT RULING ORDERING THE RELEASE OF HAITIAN REFUGEES INFECTED WITH THE AIDS VIRUS THE 158 REFUGEES STOPPED AT SEA AS THEY FLED HAITI ARE TO BE BROUGHT INTO THIS COUNTRY FROM A US NAVAL BASE IN GUANTANAMO BAY CUBA WHERE THEY HAVE BEEN HELD THE US AND THREE OTHER NATIONS AGREED TO PUSH FOR AN OIL EMBARGO AND AIRLINE SANCTIONS AGAINST HAITI FRENCH DIPLOMATS SAID A UN RESOLUTION PROBABLY WOULD CIRCULATE IN THE SECURITY COUNCIL TOMORROW MEANWHILE A UN ENVOY LAUNCHED A NEW EFFORT TO RESTORE OUSTED PRESIDENT ARISTIDE LOS ANGELES MAYORELECT RIORDAN VOWED TO TAKE STEPS IMMEDIATELY TO UNITE THIS CITY AT A NEWS CONFERENCE THE DAY AFTER HE BECAME THE CITY'S FIRST REPUBLICAN MAYOR IN MORE THAN 30 YEARS THE BUSINESSMAN SAID HIS APPOINTMENTS WOULD REFLECT THE CITY'S DIVERSITY RIORDAN DEFEATED DEMOCRAT WOO A SENATE COMMITTEE PROPOSED A COMPROMISE FOR RESTRUCTURING THE GUARANTEED STUDENT LOAN PROGRAM THAT DOESN'T MOVE COMPLETELY TO THE DIRECT GOVERNMENT LENDING PLAN CLINTON SOUGHT A HOUSE APPROPRIATIONS PANEL VOTED TO REMOVE ALL LEGISLATIVE RESTRICTIONS ON FEDERAL FUNDING FOR MEDICAIDFINANCED ABORTIONS FOR POOR WOMEN THE PANEL'S ACTION REVERSES A PRACTICE THAT DATES BACK TO THE MID1970S SOME GULF WAR VETERANS MAY SUFFER FROM A MYSTERY ILLNESS US OFFICIALS SAID THEY TOLD A CONGRESSIONAL PANEL THAT THE GOVERNMENT IS STUDYING POSSIBLE LINKS BETWEEN VETERANS' FLULIKE SYMPTOMS AND THE MILITARY'S USE OF DEPLETED URANIUM IN ARTILLERY SHELLS AND TANKS AS WELL AS THE EFFECTS OF THE OIL WELL FIRES IN KUWAIT RUSSIA'S PARLIAMENT VOTED TO SEND ITS CONSERVATIVE CHIEF KHASBULATOV BACK TO PRESIDENT YELTSIN'S CONSTITUTIONAL CONFERENCE BUT SET TOUGH CONDITIONS THE RESOLUTION SAID KHASBULATOV WHO STORMED OUT OF THE MEETING SATURDAY SHOULD RETURN ONLY IF THE LAWMAKERS ARE GIVEN A DECISIVE ROLE IN PASSING THE CONSTITUTION THE US URGED ITS EUROPEAN ALLIES TO JOIN AN EFFORT TO ECONOMICALLY ISOLATE IRAN SO THAT IT WILL END ITS ARMS BUILDUP SECRETARY OF STATE CHRISTOPHER SAID HE PRESSED FOR A COLLECTIVE POLICY OF CONTAINMENT AGAINST TEHRAN SEPARATELY IRANIAN TROOPS CLASHED WITH A RIVAL MILITARY UNIT NEAR THE IRAQI BORDER IRANIAN REBELS CLAIMED ITALIAN PROSECUTORS ASKED THE SENATE FOR AUTHORITY TO INVESTIGATE FORMER PREMIER ANDREOTTI IN CONNECTION WITH THE 1979 SLAYING OF A JOURNALIST ANDREOTTI ALREADY IS UNDER INVESTIGATION FOR ALLEGED CORRUPTION AND MAFIA LINKS HE DENIES ANY WRONGDOING THE MONTREAL CANADIENS CAPTURED HOCKEY'S STANLEY CUP FOUR GAMES TO ONE DEFEATING THE LOS ANGELES KINGS 41 IN THE FINAL GAME 9306100107 930610 WHO'S NEWS ROYAL BANK OF SCOTLAND PLC ROYAL BANK OF SCOTLAND PLC EDINBURGH SCOTLAND ROBERT C SANDERSON JR 53 YEARS OLD WAS NAMED PRESIDENT OF THE CONNECTICUT BANKING OPERATIONS OF CITIZENS FINANCIAL GROUP INC THE US HOLDING UNIT OF THIS INTERNATIONAL BANK HOLDING COMPANY MR SANDERSON HAD BEEN COMPTROLLER AND SENIOR VICE PRESIDENT OF CITIZENS FINANCIAL THE CONNECTICUT BANKING OPERATIONS WHICH INCLUDE THE FORMER NEW ENGLAND SAVINGS BANK HAVE ABOUT 800 MILLION IN ASSETS 9306100106 930610 INTERNATIONAL FRANKFURT STARTS PROBE OF TRADES ON AN EXCHANGE BY GLENN WHITNEY STAFF REPORTER OF THE WALL STREET JOURNAL FRANKFURT'S PUBLIC PROSECUTION OFFICE HAS LAUNCHED AN INVESTIGATION INTO ALLEGATIONS OF IRREGULAR TRADING ON THE DEUTSCHE TERMINBOERSE GERMANY'S FUTURES AND OPTIONS EXCHANGE THAT COULD LEAD TO SEVERAL ARRESTS FOR FRAUD THREE TRADERS SO FAR HAVE BEEN SUSPENDED FROM OPERATING ON THE DTB EXCHANGE SPOKESMAN WILHELM BRANDT SAID ONE OF THE THREE HAS ADMITTED TO ENGAGING IN TRADING IRREGULARITIES MR BRANDT ADDED A SPOKESMAN FOR THE FRANKFURT PUBLIC PROSECUTION OFFICE SAID INVESTIGATORS VISITED THE OFFICES OF THE DTB EARLIER THIS WEEK TO GATHER DETAILED DATA FROM THE EXCHANGE ON QUESTIONABLE TRADES UNLIKE MOST OTHER MAJOR FUTURES AND OPTIONS EXCHANGES THE DTB IS FULLY COMPUTERIZED WHICH SHOULD FACILITATE GATHERING EVIDENCE OF ALLEGED IMPROPRIETIES IT'S NO PROBLEM FOR US TO FIND OUT EXACTLY WHAT HAS HAPPENED MR BRANDT SAID WE CAN RUN PROGRAMS TO SORT THROUGH DATA IF SOMEBODY WANTS TO TRY AND DEFRAUD THE SYSTEM THAT'S OK BECAUSE WE'LL GET THEM THE DTB WHICH SPECIALIZES IN FUTURES CONTRACTS ON GERMAN GOVERNMENT BONDS AND OPTIONS ON THE SHARES OF MAJOR COMPANIES SUCCESSFULLY PROSECUTED A SIMILAR CASE OF ILLEGAL TRADING ABOUT FOUR YEARS AGO AT LEAST TWO OF THE PEOPLE IMPLICATED IN THE CURRENT TRANSGRESSIONS ARE FUTURES AND OPTIONS TRADERS WORKING IN FRANKFURT FOR BAYERISCHE HYPOTHEKEN & WECHSELBANK AG KNOWN AS HYPOBANK AND BASED IN MUNICH JOSEF WERTSCHULTE A MANAGING DIRECTOR OF THE BANK IN CHARGE OF DERIVATIVES TRADING SAID THE TWO EMPLOYEES HAVE BEEN SUSPENDED AND WOULD EVENTUALLY BE FIRED PENDING LEGAL APPEALS MR WERTSCHULTE ESTIMATED THE ALLEGED IMPROPRIETIES COULD RESULT IN LOSSES OF 500000 MARKS 307650 TO ONE MILLION MARKS FOR THE BANK BUT HE EXPECTED THE MONEY TO BE EVENTUALLY RECOVERED FROM THE INDIVIDUALS INVOLVED LEGALLY WE HAVE THE IDEAL SITUATION MR WERTSCHULTE SAID WE CAN RECONSTRUCT EVERYTHING FROM THE RECORDS THE HYPOBANK DIRECTOR SAID HE SUSPECTS SEVERAL OTHER BANKS WERE USED TO CARRY OUT ALLEGEDLY FRAUDULENT TRANSACTIONS WHICH WILL COME TO LIGHT IN THE COMING WEEKS NOW THAT PROSECUTORS CAN BEGIN LIFTING BANKING SECRECY RESTRICTIONS THE DTB DECLINED TO DISCLOSE THE NATURE OF THE ALLEGED ILLEGALITIES TO AVOID INADVERTENTLY AIDING OTHER WOULDBE PERPETRATORS OF FRAUD A SOURCE OPERATING ON THE EXCHANGE SAID THE ALLEGEDLY ILLEGAL TRANSACTIONS PROBABLY INVOLVED A BROKER FROM ONE BANK MAKING A TRADE WITH A BROKER AT ANOTHER BANK VIA A THIRD BANK IN SUCH A SCENARIO IF THE TRADE TURNS OUT TO EARN MONEY THE THIRD BROKER BOOKS THE TRADE INTO HIS OWN ACCOUNT IF THE TRADE LOSES MONEY THE LOSS IS BOOKED TO THE BANK WHERE THE FIRST TRADER WORKS 9306100105 930610 FINANCING BUSINESS LYNCH CORP LYNCH CORP GREENWICH CONN SAID ITS MORGAN GROUP INC CONTRACTTRANSPORTATION UNIT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF 11 MILLION CLASS A COMMON SHARES LYNCH A COMMUNICATIONS AND MANUFACTURING CONCERN WILL RETAIN A 43 INTEREST IN MORGAN GROUP AFTER THE OFFERING THE FILING ESTIMATES AN INITIAL OFFERING PRICE OF 850 TO 1050 A SHARE MORGAN GROUP ELKHART IND REPORTED NET INCOME OF 645000 ON REVENUE OF 611 MILLION IN 1992 THE COMPANY IS A COMMON AND CONTRACT CARRIER FOR THE MANUFACTURED HOUSING AND RECREATIONAL VEHICLE INDUSTRIES 9306100104 930610 MORRISON KNUDSEN ACQUISITION BOISE IDAHO MORRISON KNUDSEN CORP SAID IT ACQUIRED A CONTROLLING INTEREST IN SAN MARTIN A MANUFACTURING COMPLEX IN BUENOS AIRES FORMERLY OWNED BY THE ARGENTINE GOVERNMENT TERMS WEREN'T DISCLOSED THE ENGINEERING AND TRANSPORTATION CONCERN SAID THE FACILITY WOULD BE USED FOR MAINTAINING AND REPAIRING TRAINS AND TRANSIT CARS 9306100103 930610 WHO'S NEWS BERTELSMANN AG BERTELSMANN AG GUTERSLOH GERMANY MARKUS WILHELM 36 YEARS OLD WAS NAMED PRESIDENT OF DOUBLEDAY BOOK & MUSIC CLUBS INC A GARDEN CITY NY UNIT OF THIS INTERNATIONAL MEDIA CONCERN MR WILHELM WHO FILLS A POSITION VACANT FOR THREE YEARS HAD BEEN SENIOR VICE PRESIDENT OF MARKETING FOR THE UNIT ALSO CHRISTIAN JORG 29 YEARS OLD WAS NAMED VICE PRESIDENT AND HEAD OF BMG NEW TECHNOLOGIES A NEWLY CREATED BERTELSMANN MUSIC GROUP UNIT MR JORG HAD BEEN DIRECTOR OF NEW TECHNOLOGIES FOR THE BMG INTERNATIONAL UNIT 9306100102 930610 ABREAST OF THE MARKET STOCKS RISE AS PRICES LURE BUYERS BUT INFLATION FEARS LIMIT THE GAIN BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS SNAPPED BACK FROM FOUR STRAIGHT DAYS OF WEAKNESS BUT A HIGH LEVEL OF CAUTION AMONG INVESTORS RESTRAINED THE GAINS THE LACKLUSTER ACTION OF LATE HAD DEPRESSED STOCK PRICES SUFFICIENTLY TO LURE SOME BUYERS EARLY IN THE SESSION BUT BY THE CLOSE FEARS ABOUT HIGHER INTEREST RATES AND THE ECONOMY HAD REEMERGED THE DOW JONES INDUSTRIAL AVERAGE FINISHED WITH A GAIN OF JUST 139 OR 004 TO 351193 EARLIER IN THE SESSION THE AVERAGE HAD JUMPED TO A GAIN OF MORE THAN 20 POINTS AIDED IN PART BY PROGRAM BUYING ON THE NEW YORK STOCK EXCHANGE ADVANCERS LED DECLINERS 1038 TO 887 AND VOLUME TOTALED 242390000 SHARES COMPARED WITH 238090000 SHARES TUESDAY BROADER MARKET INDEXES ENDED SOMEWHAT STRONGER THE STANDARD & POOR'S 500 STOCK INDEX ROSE 107 OR 024 TO 44578 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX ADDED 062 OR 025 TO 24577 AND THE DOW JONES EQUITY MARKET INDEX GAINED 108 OR 026 TO 42224 PETER CANELO MARKET STRATEGIST AT NATWEST SECURITIES SAID MANY PEOPLE REMAIN TOO CONCERNED ABOUT INFLATION REPORTS DUE TOMORROW ON PRODUCER PRICES AND NEXT TUESDAY ON CONSUMER PRICES TO MAKE ANY BIG MOVES INTO THE MARKET THESE INFLATION NUMBERS ARE VERY KEY MY GUESS IS YOU WILL SEE MORE OF THIS SUBDUED TRADING TOMORROW HE SAID ASIDE FROM THE INFLATION DATA WHICH MANY FEAR COULD SPUR A FED MOVE TO TIGHTEN CREDIT ANALYSTS SAID THERE ARE ALSO JITTERS ABOUT THE CLINTON ADMINISTRATION'S ECONOMIC INITIATIVES THOSE PLANS CONTINUE TO EVOLVE AND ANALYSTS SAID INVESTORS FIND THAT UNCERTAINTY TROUBLESOME ALTHOUGH THE OVERALL MARKET COULDN'T HOLD ONTO ITS GAINS THE STOCK GROUPS THAT HAD BEEN BATTERED MOST RECENTLY BOUNCED BACK AND HELD ONTO MUCH OF THEIR GAINS THROUGH THE CLOSE CASINO STOCKS WERE STRONGEST PROMUS JUMPED 2 TO 41 CIRCUS CIRCUS ADDED 5/8 TO 56 1/2 MIRAGE RESORTS CLIMBED 1 7/8 TO 43 1/2 AND CAESARS WORLD JUMPED 1 1/8 TO 46 5/8 BANK ISSUES IMPROVED PAINEWEBBER ANALYST LAWRENCE COHN ADVISED CLIENTS TO BUY BANK SHARES SAYING THE GROUP'S PULLBACK IS OVER AND DOWNPLAYING RECENT WORRIES OF SOME ABOUT A CONTRACTION IN THE COMPANIES' NET INTEREST MARGINS STUDENT LOAN MARKETING ASSOCIATION CLIMBED 1 TO 47 1/4 FOLLOWING NEWS THAT A COMPROMISE BILL NEARING A VOTE IN A SENATE COMMITTEE WOULD SHIFT 50 OF STUDENT LOANS TO A SYSTEM OF DIRECT FEDERAL LENDING SALLIE MAE HAD OPPOSED AN EARLIER HOUSE COMMITTEE BILL THAT WOULD HAVE MOVED ALL STUDENT LENDING TO THE GOVERNMENT COMPAQ COMPUTER PLUNGED 4 3/8 TO 53 3/4 THIS NEWSPAPER REPORTED THAT SEVEN EXECUTIVES OF THE HOUSTON PERSONAL COMPUTER MAKER INCLUDING CHAIRMAN BENJAMIN M ROSEN HAVE SOLD NEARLY 26 MILLION COMPAQ SHARES RECENTLY ROSEN SAID HE SOLD STOCK IN AN EFFORT TO DIVERSIFY HIS PERSONAL INVESTMENT HOLDINGS OTHER TECHNOLOGY STOCKS WERE MIXED MOTOROLA SLID 2 3/8 TO 82 AND ON NASDAQ APPLE FELL 5 1/4 TO 44 1/4 AFTER IT PROJECTED LOWERTHANEXPECTED SECONDHALF EARNINGS BUT HEWLETTPACKARD JUMPED 1 3/8 TO 86 1/4 AND DIGITAL EQUIPMENT ROSE 1/2 TO 43 1/8 GEORGIAPACIFIC FELL 2 1/4 TO 59 1/4 A MOVE OBSERVERS TIED IN PART TO WEAKNESS IN PLYWOOD PRICES AMONG OTHER FOREST PRODUCTS COMPANIES WEYERHAEUSER LOST 1 1/4 TO 41 7/8 LOUISIANAPACIFIC EASED 3/4 TO 32 3/8 AND POTLATCH DECLINED 3/8 TO 44 ALLWASTE SLIPPED 5/8 TO 5 1/8 AFTER THE HOUSTON ENVIRONMENTAL SERVICES COMPANY ESTIMATED THAT ITS EARNINGS FOR THE THIRD QUARTER ENDED LAST MONTH FELL TO ABOUT SIX CENTS OR SEVEN CENTS A SHARE FROM 10 CENTS IN THE YEARAGO PERIOD 9306100101 930610 PUBLISHING BOSTON GLOBE PARENT GETS NEW TIMES BID BY JOHN R WILKE AND GARY PUTKA STAFF REPORTERS OF THE WALL STREET JOURNAL BOSTON DIRECTORS OF AFFILIATED PUBLICATIONS INC PARENT OF THE BOSTON GLOBE ARE EXPECTED TO CONSIDER TODAY A NEW BUYOUT OFFER OF ABOUT 1 BILLION IN CASH AND STOCK FROM NEW YORK TIMES CO THAT CONTAINS PROVISIONS FOR LOCAL EDITORIAL CONTROL INSIDERS SAID THE LOCALCONTROL ASSURANCES ARE AIMED AT SOME MEMBERS OF AFFILIATED'S CONTROLLING TAYLOR FAMILY WHO APPARENTLY OBJECTED TO AN EARLIER OFFER BY THE TIMES AND ARGUED FOR THE CONTINUED INDEPENDENCE AGAINST HEIRS WHO WANTED TO CASH OUT THIS IS STILL AN ISSUE AND A SALE REMAINS UNCERTAIN SOME GLOBE INSIDERS SAID IF ACCEPTED THE OFFER WOULD CREATE A NEWSPAPER COMPANY WITH HUGE CIRCULATION AND ADVERTISING CLOUT IN THE NORTHEAST IT WOULD ALSO ENABLE THE TIMES TO FURTHER DIVERSIFY OUT OF NEW YORK'S SLUGGISH ECONOMY AND PREVENT ANOTHER MAJOR MEDIA COMPANY WITH GREATER RESOURCES FROM GAINING A STRONGHOLD NEARBY BUT THE COMBINATION WOULD ALSO FURTHER CONCENTRATE THE TIMES IN PRINT JOURNALISM A MATURE BUSINESS AND ALTHOUGH THE NEW ENGLAND ECONOMY WHICH SUSTAINS THE GLOBE IS DOING BETTER THAN METROPOLITAN NEW YORK IT IS GROWING ANEMICALLY IN AN ENVIRONMENT UNKIND TO NEWSPAPERS A COMBINATION WOULD ALSO BRING DOWN THE CURTAIN ON MORE THAN A CENTURY OF GLOBE CONTROL BY THE TAYLORS ONE OF THE NATION'S FEW FAMILIES WITH A BIGCITYNEWSPAPER LEGACY THAT HAS REMAINED INTACT SPOKESMEN FOR BOTH COMPANIES DECLINED TO COMMENT BUT A SENIOR MEMBER OF THE TAYLOR FAMILY AND ANOTHER PERSON FAMILIAR WITH THE TALKS CONFIRMED THAT A SPECIAL BOARD MEETING IS SCHEDULED FOR TODAY ASKED WHETHER A CHANGE OF CONTROL WAS IMMINENT THIS SENIOR FAMILY MEMBER SAID YOU'LL JUST HAVE TO WAIT A COUPLE OF DAYS AFFILIATED IS UNDER PRESSURE BECAUSE OF THE LOOMING 1996 EXPIRATION OF TWO TRUSTS THAT HOLD CONTROLLING SHARES IN THE COMPANY FOR THE TAYLOR FAMILY AND THE DESCENDANTS OF EBEN JORDAN ONE OF THE ORIGINAL INVESTORS IN THE GLOBE IN THE 19TH CENTURY ACCORDING TO INSIDERS WILLIAM O TAYLOR AFFILIATED'S CHAIRMAN BELIEVES THAT THE DISTRIBUTION OF THE SHARES TO MORE THAN 120 HEIRS AT THAT TIME WOULD EXPOSE THE COMPANY TO A HOSTILE TAKEOVER OFFER BUT A YOUNGER GENERATION INCLUDING RECENTLY NAMED GLOBE PRESIDENT BENJAMIN B TAYLOR A SECOND COUSIN TO WILLIAM O TAYLOR HAS ARGUED FOR ATTEMPTING TO MAINTAIN INDEPENDENCE POSSIBLY BY RECONSTITUTING THE TRUSTS OR THROUGH THE SALE OF A MINORITY STAKE BENJAMIN TAYLOR AND THIS FACTION APPARENTLY PERSUADED AFFILIATED DIRECTORS NOT TO ACCEPT AN EARLIER TIMES OFFER I HAVE HEARD FROM SOME PEOPLE ON THE AFFILIATED BOARD THAT THIS HAS BEEN A SPLIT SITUATION FOR SOME TIME SAID MICHAEL JANEWAY A FORMER EDITOR OF THE GLOBE NOW AT THE MEDILL SCHOOL OF JOURNALISM AT NORTHWESTERN UNIVERSITY BEN IS ARGUING FOR TIME TO PROVE THERE'S ENOUGH FAMILY SUPPORT OUT THERE TO REMAIN INDEPENDENT ADDED BILL KOVACH CURATOR OF THE NIEMAN FOUNDATION AT HARVARD UNIVERSITY TODAY'S BOARD MEETING WILL BE AT LEAST THE SECOND TIME AFFILIATED DIRECTORS HAVE WEIGHED A TIMES BID EARLIER THIS YEAR GLOBE INSIDERS SAID THE BOARD REJECTED AN OFFER THAT ONE INDUSTRY EXECUTIVE VALUED AT 1550 A SHARE OR ABOUT 109 BILLION IT COULDN'T BE DETERMINED HOW MUCH THE TERMS HAVE CHANGED SINCE THEN BUT ONE PERSON FAMILIAR WITH THE LATEST OFFER SAID 1550 A SHARE WAS A TOUCH HIGH HE SAID THAT THE OFFER MAINLY INVOLVES TIMES STOCK AND THAT THE VALUATION WOULD DEPEND ON THE TIMES SHARE PRICE AT THE TIME OF CLOSING ONLY ABOUT 15 OF THE PROPOSED PURCHASE PRICE IS BELIEVED TO BE IN CASH ALTHOUGH THE LATEST OFFER CONTAINS NEW ASSURANCES OF LOCAL CONTROL SOME INSIDERS QUESTIONED THEIR VALUE OVER TIME AND SAID THAT IF THE DEAL IS DONE TIMES CONTROL WOULD BE VIRTUALLY COMPLETE AFFILIATED'S SHARES ROSE 50 CENTS TO 1350 IN HEAVY COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE TIMES CLASS A SHARES CLOSED AT 2750 DOWN 25 CENTS ALTHOUGH SOME TAYLOR HEIRS MAY PREFER TO REMAIN INDEPENDENT SELLING NOW TO THE TIMES IS REGARDED BY MANY AT AFFILIATED AS PREFERABLE TO BEING BOUGHT OUT LATER BY A COMPANY WHOSE CULTURE WOULD CLASH WITH THE GLOBE OR ITS LIBERAL EDITORIAL VIEWS IN THE NEWSROOM YOU MAY GET MORE VOTES FOR THE NEW YORK TIMES THAN JUST ABOUT ANYONE ELSE SAID SCOTT LOW PUBLISHER OF THE PATRIOT LEDGER IN QUINCY OUTSIDE BOSTON BUT MIKE BARNICLE A GLOBE COLUMNIST BETRAYED LITTLE ADMIRATION FOR THE TIMES IN A RECENT TONGUEINCHEEK COLUMN ANTICIPATING THE TAKEOVER IN WHICH HE COMPLAINED OF BEING DENIED ENTRY TO THE TIMES NEWSROOM BEFORE DONNING AN ASCOT AND A HAT WORN AT A JAUNTY ANGLE ANALYSTS AND MEDIA OFFICIALS WERE DIVIDED ON THE BUSINESS LOGIC OF A TIMESAFFILIATED COMBINATION THIS DEAL MAKES GOOD BUSINESS SENSE FOR THE TIMES THE GLOBE IS A GREAT FIT AND CREATES NEW OPPORTUNITIES SAID KEN BERENTS NEWSPAPER ANALYST WITH WHEAT FIRST SECURITIES IN RICHMOND VA BUT WHETHER IT'S A GOOD DEAL FOR SHAREHOLDERS REMAINS TO BE SEEN MR KOVACH FORMERLY THE TIMES'S WASHINGTON BUREAU CHIEF SAYS PART OF ITS MOTIVATION MAY BE DEFENSIVE IF THE GLOBE WERE TO FALL INTO SOMEONE ELSE'S HANDS IT PINS THEM DOWN FURTHER TO NEW YORK CITY HE SAYS IF THEY GET THE GLOBE THEY HAVE THE EAST COAST FROM NOVA SCOTIA DOWN TO SOMEWHERE JUST NORTH OF WASHINGTON OTHERS WEREN'T CONVINCED MY BELIEF IS THERE ARE NO SIGNIFICANT OPERATING OR ADVERTISING SYNERGIES BY COMBINING TWO SEPARATE URBAN PAPERS IN TWO SEPARATE MARKETS SAYS PETER P APPERT AN ANALYST WITH CJ LAWRENCE HE ALSO DOUBTS A BUYER COULD SQUEEZE COSTS AT THE TIGHTLY RUN GLOBE ALTHOUGH BOTH COMPANIES HAVE MADE DIVERSIFICATION EFFORTS A COMBINATION WOULD CREATE A MEDIA COMPANY HEAVILY CONCENTRATED IN PRINT NEWSPAPERS AND MAGAZINES ACCOUNTED FOR ABOUT 95 OF THE TIMES'S 177 BILLION IN REVENUE LAST YEAR AND THE BULK OF ITS OPERATING PROFIT OF 884 MILLION AFFILIATED EARNED 141 MILLION LAST YEAR ON REVENUE OF 414 MILLION AFTER RIDING THE NEW ENGLAND BOOM IN THE LATE 1980S GLOBE REVENUE FELL 51 IN 1990 AND 56 IN 1991 BUT REBOUNDED 54 LAST YEAR OPERATING PROFIT IN 1992 JUMPED 69 TO 30 MILLION REFLECTING ECONOMIC IMPROVEMENT IN NEW ENGLAND BUT ADVERTISING IN THE REGION IS DOWN BY MORE THAN HALF FROM ITS PEAK IN 1987 AND ANALYSTS SAY IT IS UNLIKELY TO REACH THAT LEVEL FOR YEARS IF EVER PATRICK M REILLY IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9306100100 930610 MARKETING BRIEF NOTED TALK CHANNEL MULTIMEDIA INC'S ENTERTAINMENT UNIT ANNOUNCED PLANS FOR THE TALK CHANNEL A CABLE CHANNEL FOCUSED ON BREAKING NEWS STORIES OF THE DAY AND USING ALL NEW MATERIAL AND TALENT THE COMPANY HOPES TO LAUNCH THE CHANNEL THE SECOND ALLTALK CABLE SERVICE TO BE ANNOUNCED IN FALL 1994 THE PROJECT WILL BE HEADED BY PAUL A FITZPATRICK FORMER PRESIDENT OF THE WEATHER CHANNEL 9306100098 930610 COUNTERPOINT DON'T PUSH THE TWO KOREAS INTO WAR BY DOUG BANDOW AFTER REJECTING DEMANDS FROM THE INTERNATIONAL ATOMIC ENERGY AGENCY TO ALLOW INSPECTION OF TWO SUSPECTED NUCLEAR FACILITIES NORTH KOREA IS PREPARING TO WITHDRAW FROM THE NUCLEAR NONPROLIFERATION TREATY NPT AS EARLY AS SATURDAY AS A RESULT FEARS OF A NORTH KOREAN NUCLEAR BOMB WHICH HAD RECEDED AS PYONGYANG ALLOWED A HALFDOZEN IAEA INSPECTIONS OVER THE PAST YEAR HAVE RISEN TO A FEVER PITCH IN THE US YET SOUTH KOREAN OFFICIALS ARE LESS CONCERNED ABOUT PYONGYANG'S INTENTIONS AND ARE MORE INCLINED TO SUPPORT A MIXED STRATEGY OF CARROTS AND STICKS TO SOLVE THE PROBLEM PEACEFULLY THE CLINTON ADMINISTRATION TOO HAS REACTED CIRCUMSPECTLY OPENING DIRECT TALKS WITH THE NORTH LAST WEEK THAT RESUME TODAY THIS MODERATION IS ALL TO THE GOOD FOR PRECIPITOUS ACTION COULD SPARK A NEW WAR ENDANGERING NOT ONLY THE 36000 AMERICAN SERVICE PERSONNEL NOW STATIONED IN THE KOREAN PENINSULA BUT ALSO MILLIONS OF SOUTH KOREANS NORTH KOREA BEGAN ITS NUCLEAR EFFORTS WHILE THE US MAINTAINED TACTICAL NUCLEAR WEAPONS IN THE SOUTH WITHDRAWN IN LATE 1991 PYONGYANG PROBABLY SAW THE BOMB AS THE LAST MEANS TO PROTECT THE SYSTEM IN THE WORDS OF DEFECTOR KO YOUNG HWAN HOWEVER SINCE THEN PYONGYANG BOTH COMPLETED AN INSPECTION AGREEMENT UNDER NPT AND AGREED WITH THE SOUTH TO MORE EXTENSIVE BILATERAL EXAMINATIONS ALTHOUGH THE TWO KOREAS SUBSEQUENTLY DEADLOCKED OVER INSPECTION PROCEDURES THE IAEA CONDUCTED SIX EXAMINATIONS OF NORTH KOREAN NUCLEAR FACILITIES CONCLUDING THAT WHILE NORTH KOREA HAD PRODUCED SOME PLUTONIUM IT DIDN'T SEEM TO HAVE AN EFFECTIVE NUCLEAR PROGRAM UNDER WAY ON THE IAEA'S VISIT TO NORTH KOREA IN JANUARY HOWEVER THE GOVERNMENT BARRED ACCESS TO TWO POSSIBLE NUCLEAR WASTE DEPOSITORIES AND IN MARCH ANNOUNCED THAT IT WAS WITHDRAWING FROM THE NPT AND ABROGATING THE INSPECTION ACCORD IN RESPONSE ARGUED DAVID KAY IN A MARCH 18 ARTICLE ON THE JOURNAL'S EDITORIAL PAGE THE UN SHOULD APPLY ECONOMIC SANCTIONS THE JOURNAL ITSELF CALLED ON MARCH 17 FOR UNSPECIFIED STRATEGIES TO SLOW PROLIFERATION MORE OMINOUS ARE PROPOSALS FOR MILITARY REMEDIES SUCH AS THAT FROM WASHINGTON POST COLUMNIST LALLY WEYMOUTH ON MONDAY ALTHOUGH WE SHOULD BE SUSPICIOUS OF NORTH KOREA'S INTENTIONS WE REALLY KNOW NEITHER THE NORTH'S CAPABILITIES NOR MOTIVES FOR INSTANCE NORTH KOREA MAY HAVE HAD A NUCLEAR PROGRAM UNDER WAY BUT DECIDED IN 1991 TO DROP IT IN EXCHANGE FOR THE EXPECTED BENEFITS DIPLOMATIC RECOGNITION AND FOREIGN TRADE AND INVESTMENT NONE OF THOSE BENEFITS HAVE BEEN FORTHCOMING HOWEVER SO MORE HARDLINE ELEMENTS MAY HAVE FORCED A REVERSAL OR AS MANY SOUTH KOREANS SPECULATED DURING MY RECENT VISIT TO SEOUL THE NORTH MAY BE PLAYING ITS NUCLEAR CARD IRRESPECTIVE OF THE ACTUAL STATE OF ITS PROGRAM IN AN ATTEMPT TO WRING MORE CONCESSIONS FROM THE US SOUTH KOREA AND JAPAN IN THESE CASES THE PROBLEM MAY STILL BE SOLUBLE BY NEGOTIATION INDEED THERE ARE FEW OTHER OPTIONS UN SANCTIONS WHICH THE CLINTON ADMINISTRATION THREATENS TO REQUEST IF NEGOTIATIONS FAIL WOULD LIKELY BE INEFFECTIVE AGAINST THE NORTH'S ALREADY ISOLATED ECONOMY EVEN IF CHINA ALLOWED THE SECURITY COUNCIL TO ACT PROPOSALS TO STRIKE MILITARILY ARE FOOLHARDY IF WEAPONS PRODUCTION FACILITIES EXIST THEY ARE PROBABLY BURIED DEEP UNDERGROUND AND AN INEFFECTIVE STRIKE WOULD ENCOURAGE THE REGIME TO PERSEVERE SINCE IT WOULD DEMONSTRATE THAT ONLY WITH AN ATOMIC BOMB CAN THE NORTH DEFEND ITSELF THAT IS NOT ALL HOWEVER AT A MINIMUM THE NORTH WOULD LIKELY RESTART ITS POTENT TERRORIST CAMPAIGN FAR WORSE IS THE POSSIBLE IGNITION OF THE WORLD'S MOST DANGEROUS FLASHPOINT AIR STRIKES WOULD BE AN ACT OF WAR THAT NORTH KOREA COULDN'T EASILY IGNORE AND SEOUL THE SOUTH'S CAPITAL CITY WITH A POPULATION OF 12 MILLION LIES ONLY 30 MILES FROM THE BORDER THUS THE CLINTON ADMINISTRATION SHOULD OFFER NORTH KOREA A NUMBER OF REWARDS FOR REMAINING WITHIN THE NPT FIRST IT SHOULD PROMISE TO ESTABLISH DIPLOMATIC TIES WITH AND END THE ECONOMIC EMBARGO AGAINST PYONGYANG IF NORTH KOREA REMAINS WITHIN THE NPT AND FULFILLS ITS OBLIGATIONS TO THE IAEA WASHINGTON ALSO SHOULD COMMIT TO THREEWAY TALKS TO IMPLEMENT THE TWO KOREAS' INDEPENDENT INSPECTION PROCESS WHICH WOULD BE MORE RIGOROUS THAN THE IAEA THE ULTIMATE OBJECTIVE OF SUCH TALKS SHOULD BE A WILLINGNESS BY ALL SIDES TO ALLOW INVESTIGATION OF ANY SUSPECTED FACILITY BUT THE INITIAL INSPECTIONS COULD BE MORE MODEST THE US ADMINISTRATION IS APPARENTLY PREPARED TO OFFER TO OPEN FOR INSPECTION SEVERAL AMERICAN BASES IN SOUTH KOREA WHERE NUCLEAR WEAPONS WERE ONCE DEPLOYED IN RETURN NORTH KOREA SHOULD ALLOW THE IAEA AND SOUTH KOREA FULL ACCESS TO ITS FACILITY AT YONGBYON ADDITIONAL BASES AND SITES IN BOTH THE NORTH AND SOUTH COULD BE OPENED FOR VIEW OVER TIME THE U S SHOULD ALSO TRY TO JUMPSTART OTHER NORTHSOUTH ARMSCONTROL TALKS BY ANNOUNCING A CANCELLATION OF FUTURE JOINT EXERCISES WITH THE SOUTH A STEP ALREADY CONTEMPLATED BY THE ADMINISTRATION AND A PHASED WITHDRAWAL OF ITS SOLDIERS IF IT IS SERIOUS ABOUT PEACE THE NORTH COULD RECIPROCATE BY DEMOBILIZING SOME OF ITS FORCES AND PULLING THEM BACK FROM THEIR THREATENING POSITIONS ON THE BORDER A REFUSAL TO RESPOND POSITIVELY WOULD PROVIDE CLEAR EVIDENCE OF THE NORTH'S AGGRESSIVE INTENTIONS AND SHOULD CAUSE THE SOUTH WITH 12 TIMES THE GROSS NATIONAL PRODUCT AND TWICE THE POPULATION OF NORTH KOREA TO ENGAGE IN A SERIOUS MILITARY BUILDUP WHAT OF THE US PRESENCE IF THE NORTH REFUSES TO CHOOSE PEACE TO LEAVE 36000 AMERICANS IN SOUTH KOREA AS NUCLEAR HOSTAGES IN THE EVENT THAT THE NORTH ACQUIRES AN ATOMIC BOMB OR WORSE TO BOOST THE US MILITARY PRESENCE WOULD BE UNFORGIVABLE NOWHERE ELSE ON EARTH WOULD SO MANY AMERICANS BE SO CLEARLY AT RISK NOR SHOULD THE US RETAIN ITS NUCLEAR GUARANTEE TO KOREA RATHER THE US SHOULD TELL PYONGYANG THAT IF IT SEEKS TO GAIN AN ATOMIC ADVANTAGE WASHINGTON WILL NOT BLOCK SEOUL FROM DEVELOPING NUCLEAR WEAPONS OR FROM OBTAINING A SMALL NUCLEAR INVENTORY FROM THE US SUFFICIENT TO CANCEL THE NORTH'S ADVANTAGE AS A RESULT THE NORTH WOULD FIND ITSELF EVEN FURTHER BEHIND ITS SOUTHERN RIVAL THE THOUGHT OF EXPANDING THE WORLD'S NUCLEAR CLUB MIGHT SEEM UNSETTLING BUT A GROWING NUMBER OF NATIONS ARE LIKELY TO ACQUIRE ATOMIC WEAPONS IN THE YEARS AHEAD DESPITE THE NPT GIVEN THE RISKS OF COERCIVE NONPROLIFERATION THE US NEEDS TO FIND WAYS TO ADJUST TO A WORLD IN WHICH NUCLEAR ARMS PROLIFERATE IN THE CASE OF NORTH KOREA THERE ARE NO SIMPLE SOLUTIONS BUT SOME OPTIONS ARE WORSE THAN OTHERS AND THE US SHOULD BE CAREFUL TO CHOOSE A COURSE THAT DOESN'T RISK DRIVING THE TWO KOREAS INTO WAR MR BANDOW IS A FELLOW AT THE CATO INSTITUTE A FORMER SPECIAL ASSISTANT TO PRESIDENT REAGAN HE IS THE COEDITOR OF THE USSOUTH KOREAN ALLIANCE TIME FOR A CHANGE TRANSACTION 9306100097 930610 LETTERS TO THE EDITOR LANDMARK DECISIONS JAMES BOVARD'S DIATRIBE THIS IS NO WAY TO PRESERVE HISTORY EDITORIAL PAGE MAY 13 CONSTITUTES A DISTORTION AND A DISSERVICE TO THE THOUSANDS OF COMMUNITIES WORKING REASONABLY AND SUCCESSFULLY TO PROTECT THEIR HERITAGE CONTRARY TO HIS OUTRAGEOUS ASSERTION THAT PRESERVATIONISTS SEEK TO SEIZE CONTROL OF MILLIONS OF AMERICAN BUILDINGS MOST PRESERVATIONISTS DO NOT BELIEVE THAT ALL OLD BUILDINGS SHOULD BE SAVED SIMPLY BECAUSE THEY ARE OLD RATHER PRESERVING AND USING OLD BUILDINGS IS AN ESSENTIAL PART OF CREATING STABLE LIVABLE COMMUNITIES FOR ALL AMERICANS WHILE PRESERVATION ORDINANCES DO REQUIRE PROPERTY OWNERS TO COMPLY WITH CLEAR PROCEDURES BEFORE UNNECESSARILY OR UNWITTINGLY DESTROYING UNIQUE HISTORIC CULTURAL AND ARCHITECTURAL RESOURCES THEY ALSO INCLUDE ECONOMIC HARDSHIP PROVISIONS TO ENSURE THAT OWNERS' PROPERTY RIGHTS ARE NOT UNDULY BURDENED EVEN SUCH ZEALOUS GUARDIANS OF PRIVATE PROPERTY RIGHTS AS JUSTICES REHNQUIST AND SCALIA AGREE THAT LANDMARK LAWS ARE A VALID EXERCISE OF THE STATE'S POLICE POWER AND ARE FULLY CONSTITUTIONAL IT IS A PRINCIPLE OF JURISPRUDENCE EVEN OLDER THAN THE CONSTITUTION THAT AN OWNER MUST NOT USE HIS PROPERTY TO DAMAGE THE PROPERTY OF ANOTHER THIS REASONING IS THE BASIS FOR ZONING LAWS THAT PROHIBIT A NEIGHBOR FROM CONVERTING HIS RESIDENTIALLY ZONED PROPERTY TO INDUSTRIAL USES EVEN IF THE CONVERSION WOULD BRING A HIGHER ECONOMIC RETURN FOR MORE THAN 100 YEARS UP TO AND INCLUDING LAST YEAR'S LUCAS DECISION THE SUPREME COURT HAS CONSISTENTLY HELD THAT GOVERNMENT REGULATION THAT MERELY DIMINISHES THE VALUE OF PRIVATE PROPERTY IS NOT A VIOLATION OF THE FIFTH AMENDMENT'S TAKING CLAUSE OR ANY OTHER PROVISION OF THE BILL OF RIGHTS MR BOVARD CLAIMS THAT PRESERVATION LAWS VIOLATE THE PRINCIPLE OF CHURCHSTATE SEPARATION BUT THE COURTS HAVE MADE IT CLEAR THAT CHURCHES ARE NOT EXEMPT FROM THE LAW BY VIRTUE OF THEIR RELIGIOUS ACTIVITIES THEY MUST COMPLY WITH FIRE CODES FOR INSTANCE AS WELL AS LANDMARK PROTECTION LAWS THIS IS NOT TRAMPLING THE BILL OF RIGHTS AS LONG AS CHURCHES ARE NOT SINGLED OUT FOR ANY SPECIAL TREATMENT BECAUSE OF THEIR RELIGIOUS PRACTICES PRESERVATION OF HISTORIC COMMUNITIES HELPS TO STABILIZE NEIGHBORHOODS REVERSE URBAN BLIGHT AND ENGENDER CITIZEN PRIDE IN HOME AND COMMUNITY IN PURSUIT OF THESE GOALS PRESERVATIONISTS SOMETIMES MAKE MISTAKES BUT GENERALIZING FROM ISOLATED INSTANCES OF ERROR OR MISJUDGMENT TO INDICT THE ENTIRE PRESERVATION MOVEMENT IS PURE DEMAGOGUERY I TAKE EXCEPTION TO MR BOVARD'S QUOTING ME TO HELP SUPPORT HIS VIEWS THAT PRESERVATION IS EQUIVALENT TO CONFISCATION MY STATEMENT WAS TAKEN OUT OF CONTEXT FROM AN ARTICLE DESCRIBING ACTION TAKEN BY THE CITY OF SAN ANTONIO TO DEAL WITH FLAGRANT ABUSES BY THOSE WHO WOULD FLOUT EXISTING LAWS IN THIS PARTICULAR CASE A DEVELOPER HAD CYNICALLY WILLFULLY DEMOLISHED AN OUTSTANDING LOCAL LANDMARK UNDER COVER OF DARKNESS KNOWING FULL WELL THAT HIS ONLY PUNISHMENT WOULD BE A RELATIVELY MODEST TO HIM 25000 FINE THE STATE LEGISLATION ENACTED REFLECTED THE STATEWIDE OUTRAGE THAT RESULTED MY THANKS TO MR BOVARD FOR LIFTING THE VELVET CURTAIN OFF THE HISTORIC PRESERVATIONISTS AND REVEALING THEIR MALEVOLENT ATTITUDES AND CONFISCATORY ACTIONS SCORNING CONSTITUTIONAL GUARANTEES OF PROPERTY RIGHTS THIS ARBITRARY AMALGAM OF OBSTRUCTIONISTS HAS TWISTED A REASONABLE SYMPATHY FOR TRULY HISTORIC BUILDINGS AND PLACES INTO A FASCIST ATTACK ON VIRTUALLY ALL DEVELOPMENT AND CHANGE LOOKING BACK ON A QUARTER CENTURY OF ARCHITECTURAL PRACTICE I HAVE SEEN FEW RIVALS TO THE PRESERVATIONISTS FOR INSIDIOUS ACTS OF DE FACTO APPROPRIATION AND SEIZURE WITH THE POSSIBLE EXCEPTION OF THEIR EQUALLY TWISTED SISTERS THE ZONING BOARDS PERHAPS WE COULD SET THESE GROUPS AT ODDS WITH EACH OTHER BY PARKING 50YEAROLD CAMPERTRAILERS IN OUR DRIVEWAYS FOR 10 YEARS I HAVE BEEN A PRESERVATION ADVOCATE IN CHICAGO WORKING PRINCIPALLY WITH MINORITY COMMUNITIES AND CHURCH CONGREGATIONS SEEKING TO PRESERVE THEIR BUILDINGS I HAVE WORKED IN THESE AREAS NOT BECAUSE THEY WERE TARGETED BUT BECAUSE OUR JOB IS TO RESPOND TO COMMUNITIES THAT ASK FOR OUR ASSISTANCE IF YOU ARE WORSHIPING IN A LANDMARK CHURCH IN CHICAGO YOU ARE MOST LIKELY AFRICANAMERICAN MANY SUCH CHURCHES WERE DESIGNATED TO PREVENT THEIR DEMOLITION BY THE LARGESCALE URBAN RENEWAL PLANS OF THE WHITE ESTABLISHMENT HOLY FAMILY CHURCH IN CHICAGO WAS TO BE DEMOLISHED BECAUSE ITS SMALL POOR MINORITY CONGREGATION NEEDED SOCIAL SERVICES RATHER THAN A GOTHIC CATHEDRAL THE ONLY HITCH WAS THAT THE SMALL POOR MINORITY PARISHIONERS DID NOT AGREE THEY FOUGHT THE DECISION FORMED A COALITION THAT INCLUDED THE MAYOR AND RESTORED THE CHURCH CHICAGO'S LANDMARKS ORDINANCE EXCLUDES CHURCHES SIMPLY BECAUSE ONCE A VERY WEALTHY PRESBYTERIAN CHURCH WAS CONCERNED THAT LANDMARK STATUS WOULD IMPINGE ON ITS ABILITY TO SELL ITS VALUABLE SITE FOR MILLIONS OF DOLLARS THIS IS NOT AN INFERENCE BUT THE JUSTIFICATION STATED WHEN THE PRESBYTERY VOTED AGAINST DESIGNATION CHURCHES IN CHICAGO CAN NOW JOIN OTHER PROPERTY OWNERS IN ASSEMBLING LAND FOR SPECULATION AND THEIR PROPERTYTAX EXEMPTION GIVES THEM A COMPETITIVE ADVANTAGE NOT ENJOYED BY HOMEOWNERS GENERALLY HISTORIC AREAS SEE AN INCREASE IN VALUE AFTER DESIGNATION BECAUSE BUYERS KNOW THAT THE AREA'S CHARACTER AND HENCE ITS VALUE IS PROTECTED DEVELOPERS SCREAMED IN CHICAGO IN 1872 WHEN THE CITY BANNED WOODEN BUILDINGS AFTER THE DEVASTATING FIRE OF 1871 BUT THE CITY WAS SAFER AND SO WERE REAL ESTATE VALUES THIS IS WHY PEOPLE IN SOME OF CHICAGO'S POOREST NEIGHBORHOODS SEEK LANDMARK DESIGNATION THEY HAVE SEEN THE VAGRANTS AND DRUG USERS AND PROSTITUTES IN THE ABANDONED BUILDINGS AND THEY HAVE SEEN THOSE BUILDINGS DEMOLISHED HALF THE BUILDINGS IN THEIR HISTORIC NEIGHBORHOODS HAVE BEEN LOST SCHOOLTEACHER FLOYD BUTLER HAS FORMED YOUNG URBAN PRESERVATIONISTS FOR ATRISK INNERCITY YOUTH CHILDREN WITHOUT HOPE ARE SHOWN THE VALUE INHERENT IN NEIGHBORHOODS THAT ONLY LOOKED NEGATIVE BEFORE WHEN THEY SEE THE POTENTIAL FOR VALUE IN THEIR COMMUNITY THEY SEE POTENTIAL IN THEMSELVES HISTORIC PRESERVATION HAS PROGRESSED FROM A HOBBY OF AESTHETES TO A MODEL FOR COMMUNITY EMPOWERMENT IT HAS PROGRESSED FROM A CIRCLE OF ARCHITECTS AND SOCIALITES TO A CROSSSECTION OF DEMOCRACY RANGING FROM THE INNER CITY TO THE FARM IT WILL CONTINUE TO PROGRESS NO MATTER HOW OFTEN MR BOVARD WRITES ABOUT PUBLIC POLICY ISSUES HE DOES NOT UNDERSTAND IN HIS REFERENCES TO THE THIRD CHURCH OF CHRIST SCIENTIST IN WASHINGTON DC MR BOVARD SUGGESTS THAT ONLY THE MOST TRADITIONAL OF BUILDINGS CAN BE LANDMARKS SUCH IS NOT THE CASE THIS PROVOCATIVE AWARDWINNING COMPLEX WAS DESIGNED BY IM PEI & PARTNERS ONE OF THE MOST CELEBRATED US ARCHITECTURAL FIRMS OF THE POSTWORLD WAR II ERA THE COMMISSION OF FINE ARTS NOTED THAT IT WAS THE ONLY MODERN STRUCTURE INCLUDED IN THE COMMISSION'S SERIES OF BOOKS DOCUMENTING THE ARCHITECTURE OF MASSACHUSETTS AVENUE AND 16TH STREET MR BOVARD IS ALSO INCORRECT WHEN HE STATES THAT A PRELIMINARY INJUNCTION WAS IMPOSED AGAINST THE CHURCH TO PREVENT IT FROM MAKING MODIFICATIONS DC LAW REQUIRES THE HISTORIC PRESERVATION REVIEW BOARD TO ACT WITHIN 90 DAYS UPON A LANDMARK APPLICATION WHEN AN OWNER FILES AN APPLICATION FOR ALTERATIONS OR DEMOLITION NO SUCH APPLICATION HAS BEEN FILED AND IN FACT THE OWNER OF THE COMPLEX REQUESTED A POSTPONEMENT OF A HEARING WHILE THE OWNER AND THE APPLICANTS FOR LANDMARK DESIGNATION HAVE BEEN WORKING TOWARD AN AGREED UPON SOLUTION FOR THE SITE MR BOVARD ATTEMPTS TO PAINT HISTORIC PRESERVATIONISTS AS POWERCRAZED IRRATIONAL ZEALOTS I SIT ON THE BOARD OF THE DC PRESERVATION LEAGUE WITH REAL ESTATE DEVELOPERS BANKERS CORPORATE LAWYERS ARCHITECTS AND ACCOUNTANTS DECISIONS TO FILE LANDMARK APPLICATIONS ARE MADE AFTER CAREFUL DELIBERATIONS USUALLY FOLLOWING A COMPREHENSIVE CITYWIDE SURVEY OF A PARTICULAR BUILDING TYPE OVER THE YEARS SUCCESSFUL SOLUTIONS FOR THE REDEVELOPMENT OF NUMEROUS LANDMARK BUILDINGS HAVE RESULTED FROM NEGOTIATIONS BETWEEN THE LEAGUE AND BUILDING OWNERS CONTRARY TO MR BOVARD'S STATEMENT THIS IS THE WAY TO PRESERVE HISTORY 9306100096 930610 INTERNATIONAL US SENDS SEVERAL AIRCRAFT TO AID UN IN SOMALIA WASHINGTON THE US IS SENDING SEVERAL AC130 SPECTRE GUNSHIP AIRCRAFT TO THE HORN OF AFRICA IN RESPONSE TO THE ATTACK LAST WEEKEND ON UNITED NATIONS PEACEKEEPING FORCES IN SOMALIA THE HEAVILY ARMED AIRCRAFT WHICH CAN HAVE A DEVASTATING EFFECT ON GROUND TROOPS APPARENTLY ARE BEING SENT BECAUSE UN FORCES IN SOMALIA FEEL OUTGUNNED BY LOCAL WARLORDS IN ADDITION THERE IS A FEAR THAT THE MORALE OF THE PEACEKEEPING FORCES IS SINKING THE US FIRST SENT TROOPS INTO SOMALIA IN DECEMBER TO STABILIZE THE SITUATION AND ALLOW THE DELIVERY OF FOOD AID US TROOP LEVELS PEAKED IN MIDJANUARY AT ABOUT 26000 AND HAVE DECLINED SINCE THEN TO ABOUT 4000 9306100095 930610 BUSINESS BRIEF GENERAL ELECTRIC CO GE PLASTICS BUYS OPERATIONS OF MEXICAN RESIN SUPPLIER GE PLASTICS A UNIT OF GENERAL ELECTRIC CO BOUGHT THE COMMERCIAL ABS RESIN OPERATIONS OF INDUSTRIAS RESISTOL A MAJOR MEXICAN ABS SUPPLIER FOR AN UNDISCLOSED AMOUNT ABS IS A THERMAL PLASTIC USED IN COMPUTERS AND OTHER MACHINERY THE PURCHASE INCLUDES INDUSTRIAS RESISTOL'S CUSTOMER BASE AND THE TRADEMARK TO EPOLAN RESIN GE PLASTICS SAID IT WILL SERVICE THE BUSINESS FROM ITS OPERATIONS IN MEXICO CITY AND FROM ITS POLIMAR SA MANUFACTURING PLANT IN TAMPICO MEXICO AND OTHER CITIES GE PLASTICS SAID IT HAS NO IMMEDIATE PLANS TO EXPAND ITS ABS MANUFACTURING CAPACITY IN MEXICO GENERAL ELECTRIC IS AN INDUSTRIAL FINANCIAL SERVICES AND BROADCASTING CONCERN 9306100094 930610 POLITICS & POLICY AS ADMINISTRATION SEEKS ITS BEARINGS GEPHARDT REMAINS A BUOY MARKING THE DEMOCRATIC CHANNEL BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL SEATTLE WASH BILL CLINTON PROMISED TO FOCUS LIKE A LASER ON THE NATION'S ECONOMIC TROUBLES HOUSE MAJORITY LEADER RICHARD GEPHARDT HIS BRIEFCASE HEAVY WITH TOMES ON MANUFACTURING AND LABOR RELATIONS IS ACTUALLY DOING IT AS A FLOUNDERING WHITE HOUSE TRIES TO RIGHT ITSELF THE FORMER ST LOUIS ALDERMAN REMAINS THE GUARDIAN OF THE MIDDLE CLASS ECONOMIC THEMES THAT HELPED MAKE MR CLINTON PRESIDENT IF WE AREN'T THE PARTY OF WORKERS AND THE MIDDLE CLASS THEN WE AREN'T A PARTY HE SAYS TO THE EXTENT WE GET DEBILITATED BY GOING OFF IN 50 DIFFERENT DIRECTIONS WE'RE NOT GOING TO DO ANYTHING HERE IN THE PACIFIC NORTHWEST THE MISSOURI CONGRESSMAN JUMPS BETWEEN VANS PLANES AND EVEN A BOAT IN A WHIRLWIND OF MEETINGS WITH HIGHTECH AND AEROSPACE EXECUTIVES WHERE ARE THE JOBS IS HIS CONSTANT REFRAIN WILLIAM GATES THE SELFMADE COMPUTER BILLIONAIRE WELCOMES MR GEPHARDT TO MICROSOFT'S CAMPUS OUTSIDE SEATTLE MCCAW CELLULAR COMMUNICATIONS SENDS A SEAPLANE TO FETCH HIM AS THE 52YEAROLD TRADE WARRIOR PULLS UP TO BOEING'S CAVERNOUS PLANT A JAPANESE DELEGATION DEPARTS QUICKLY IN A BLACK LIMOUSINE FIVE YEARS AFTER HIS FAILED PRESIDENTIAL CAMPAIGN MR GEPHARDT HAS REESTABLISHED HIMSELF AS ONE OF THE MOST DURABLE FIGURES IN GOVERNMENT FROM RUSSIAN AID TO HEALTHCARE REFORM TO THE DEFICIT NO ONE IN CONGRESS IS MORE CENTRAL TO THE ADMINISTRATION'S AGENDA AND FEW IN CONGRESS BRING THE SAME MIX OF RELATIVE YOUTH POWER AND POLITICAL SECURITY AT HOME HIS RELENTLESS APPETITE FOR NEGOTIATIONS HAS MADE HIS OFFICE A NEXUS FOR DIVERGENT FORCES IN AND OUT OF THE PARTY IT WAS MR GEPHARDT WHO TRACKED DOWN A DEJECTED CHARLES STENHOLM ON THE HOUSE FLOOR LAST MONTH AND CONVINCED THE CONSERVATIVE TEXAS DEMOCRAT TO TRY AGAIN TO FORGE AN ALLIANCE WITH LIBERALS THE ALLIANCE THAT ULTIMATELY GOT THE PRESIDENT'S ECONOMIC PLAN THROUGH THE HOUSE ROSS PEROT CALLS TO PRAISE A RECENT GEPHARDT SPEECH ON TRADE REPUBLICAN FIREBRAND REP NEWT GINGRICH NOW CULTIVATES THE DEMOCRATIC LEADER WHO SO GOT UNDER THE SKIN OF GEORGE BUSH A NUMBER OF GEPHARDT ALLIES AND FORMER AIDES HAVE PROMINENT ROLES IN THE CLINTON WHITE HOUSE AMONG THEM PRESIDENTIAL ADVISER GEORGE STEPHANOPOULOS AND POLITICAL STRATEGIST PAUL BEGALA A LIKELY SPEAKER MR GEPHARDT'S POLITICAL FUTURE LIES IN THE HOUSE WHERE HE IS THE TOP CONGRESSIONAL LEADER WHO MOST IDENTIFIES WITH THE CLINTON GENERATION HE MIGHT BE THE PRESIDENT'S OLDER LESS PROMINENT BROTHER WHO NEVER WON THE BRASS RING BUT KEEPS HIS FEET SOLIDLY ON THE GROUND THE 1988 GEPHARDT PRESIDENTIAL CAMPAIGN FAILED IN PART BECAUSE HE NEVER WON OVER THE DEMOCRATIC ELITES THAT MR CLINTON WAS SO SUCCESSFUL IN WOOING IN 1992 WITH THE NEW ADMINISTRATION NOW UNDER FIRE AS ELITIST AND DISCONNECTED FROM THE PUBLIC THE CONGRESSMAN'S MIDDLE CLASS IDENTITY IS A POLITICAL BEACON OF SORTS GEPHARDT'S INSTINCTS WERE TRAINED IN A PLACE WHERE I DON'T THINK CLINTON EVER REALLY VISITED PSYCHOLOGICALLY SAYS POLITICAL ANALYST KEVIN PHILLIPS IF CLINTON IS GENUINELY GOING TO GO THE MIDDLE CLASS ROUTE GEPHARDT IS INVALUABLE BUT IF THIS IS ANOTHER FEINT THEN HE RISKS DAMAGING NOT ONLY HIS CREDIBILITY BUT GEPHARDT'S LOOMING AHEAD IS THE NORTH AMERICAN FREE TRADE AGREEMENT WHICH COULD RISE OR FALL ON MR GEPHARDT'S POSITION WASHINGTON WISDOM ARGUES THAT THE MAJORITY LEADER WILL EVENTUALLY CLIMB ON BOARD BUT AFTER SEVEN TRIPS TO MEXICO AND THE TEXAS BORDER IN RECENT YEARS HE INSISTS HIS DEMANDS BE MET FIRST ON LABOR AND ENVIRONMENTAL PROVISIONS NOW BEING NEGOTIATED THE FACTS WILL DECIDE IT HE SAYS HIS TRADE STANCE HAS WON GREATER ACCEPTANCE AS PROVISIONS HE AUTHORED HAVE HELPED OPEN MARKETS IN JAPAN AND IN MICROSOFT'S CASE BRAZIL BUT IN MR GEPHARDT'S VIEW WASHINGTON STILL FAILS TO RECOGNIZE THE VISE CLOSING ON THE US MANUFACTURING WORKER CAUGHT BETWEEN THE HIGHLY INTEGRATED ECONOMIES OF A JAPAN AND GERMANY AND THE LOWERWAGE COMMAND ECONOMIES OF MEXICO AND CHINA BOB REICH WILL ARGUE THAT ALL YOU NEED TO WORRY ABOUT IS WHERE THE SMART PEOPLE ARE SAYS MR GEPHARDT OF THE LABOR SECRETARY'S HIGHPROFILE BUDGET FOR TRAINING PROGRAMS IF THIS WERE MEDICINE YOU CAN SAY I'M FOR MORE AGGRESSIVE TREATMENT MR GEPHARDT'S ATTITUDES ARE DEEPLY ROOTED IN HIS BACKGROUND FROM HIS MOTHER HE INHERITED AN ALMOST RELIGIOUS OPTIMISM HIS LATE FATHER A MILK TRUCK DRIVER BETWEEN STINTS IN INSURANCE AND REAL ESTATE TAUGHT A HARDEREDGED RESENTMENT OF THE BIG SHOTS WHO CONTROLLED HIS FATE AN ANGER THAT STILL SURFACES IN THE CONGRESSMAN'S VOICE A LOT OF PEOPLE DON'T APPRECIATE WHAT ORDINARY PEOPLE GO THROUGH HE SAYS HIS FATHER ALWAYS FELT HE FAILED US HE COULDN'T MAKE IT HAPPEN MAKING IT HAPPEN IS VERY MUCH WHAT THE SON IS ABOUT IN DARK MOMENTS HE STILL FEELS EMPTY HOLLOW AND DISAPPOINTED EVEN AMID GREAT LEGISLATIVE TRIUMPH BUT BEHIND THE DISCIPLINED SOMETIMES OFFPUTTING GEPHARDT MANNER IS A SURPRISING GIFT FOR SARCASM THAT ALLOWS HIM TO STEP OUTSIDE AND LAUGH AT PUSHING WATER UP THE ROAD IN A DEMOCRATIC GOVERNMENT TRAVEL ABROAD HAS BROUGHT RENEWED CONFIDENCE IN THE US THE CANDIDATE WHO WHO ONCE PROCLAIMED MIDNIGHT IN AMERICA NOW SAYS HE WENT TOO FAR WE'RE MUCH TOO NEGATIVE HE SAYS MUCH TOO DEPRESSED ABOUT WHERE WE'RE HEADED HE REMAINS CONVINCED OF GOVERNMENT'S ROLE IN THE ECONOMY BUT ALSO THAT RELATIONS WITH BUSINESS MUST IMPROVE A LOT OF IT HAS TO BE FIGURING OUT HOW WE EITHER GET GOVERNMENT OUT OF THE WAY HE SAYS OR TO CREATE A PLAYING FIELD ON WHICH GREATER COMPETITION AND INNOVATION CAN OCCUR HE APPEARS BENT ON BREAKING THE STALEMATE OVER CONTENTIOUS LEGISLATION SPELLING OUT WHAT SERVICES AND PROPERTY RIGHTS WILL BE AWARDED TO COMMUNICATIONS INTERESTS WITH A STAKE IN THE INFORMATION HIGHWAYS OF THE FUTURE IN THE CASE OF THE AIRLINE INDUSTRY MR GEPHARDT WANTS EXPANDED CREDIT FOR US MANUFACTURERS COMPETING OVERSEAS WITH THE EUROPEANSUBSIDIZED AIRBUS INDUSTRIE HE ALSO TOYS WITH GOVERNMENT REREGULATION OF AIRPORT GATES TO ENSURE GREATER COMPETITION AT DOMESTIC HUBS NOW DOMINATED BY SINGLE CARRIERS MR GEPHARDT'S FASCINATION WITH HIGH TECHNOLOGY GOES BACK AT LEAST TO HIS DAYS WITH THE EARLY 1980S ATARI DEMOCRATS BUT FOR A SON OF THE INDUSTRIAL MIDWEST THE VISION OF A NEW INFORMATION AGE CAN STILL SEEM EPHEMERAL NEXT TO THE STEEL AND FOREBODING QUIET OF AN IDLE DOUGLAS AIRCRAFT PLANT HE VISITS IN CALIFORNIA WITH AUTOMOBILES AND AIRPLANES TOGETHER AND ALL THE JOBS IN THE FOOD CHAIN BEHIND THEM YOU'VE GOT ONE SIGNIFICANT PART OF OUR ECONOMY AND ITS STANDARD OF LIVING HE SAYS I CAN'T IMAGINE AS A MATTER OF NATIONAL INTEREST WE'RE GOING TO LET ALL THAT MELT AWAY AND REPLACE IT WITH CELLULAR PHONES AND COMPUTERS 9306100093 930610 BUSINESS BRIEF TASTY BAKING CO FILING IS MADE FOR SPINOFF OF PHILLIPS & JACOBS UNIT TASTY BAKING CO HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE PLANNED TAXFREE SPINOFF OF ITS PHILLIPS & JACOBS INC UNIT WHICH DISTRIBUTES SUPPLIES AND EQUIPMENT FOR THE PRINTING INDUSTRY IN A LETTER TO SHAREHOLDERS PHILADELPHIABASED TASTY BAKING SAID IT FILED A REGISTRATION STATEMENT AND OTHER DOCUMENTS THAT SHOULD BE EFFECTIVE BY EARLY JULY THE MAKER OF BAKED PRODUCTS PLANS TO DISTRIBUTE ALL OF THE STOCK OF ITS UNIT TO SHAREHOLDERS TASTY BAKING SAID IT EXPECTS THE DATE OF DISTRIBUTION FOR THE SPINOFF TO BE AUG 1 WITH THE DISTRIBUTION RECORD DATE EXPECTED TO BE MIDJULY TASTY BAKING SHAREHOLDERS OF RECORD WOULD BE ENTITLED TO RECEIVE TWO SHARES OF PHILLIPS & JACOBS FOR EVERY THREE SHARES HELD IN THE PARENT 9306100092 930610 INVESTORS ARE HIGH ON LOWRATED LATIN AMERICAN DEBT BY CRAIG TORRES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FOR THE FIRST TIME SINCE JUNK BONDS CAPTIVATED INVESTORS IN THE 1970S WALL STREET BELIEVES THE STAGE HAS BEEN SET FOR A NEW WAY TO MAKE MONEY FROM HIGHRISK BONDS THIS TIME BIG US INVESTORS ARE SCOOPING UP LATIN AMERICAN CORPORATE BONDS BECAUSE THEY'RE CONVINCED THE TWO MAIN CREDITRATING SERVICES ARE RATING THE BONDS TOO LOW MOODY'S INVESTORS SERVICE AND STANDARD & POOR'S CORP AS A MATTER OF POLICY WON'T RATE A COMPANY HIGHER THAN ITS HOME COUNTRY NEITHER MOODY'S NOR S&P GIVES AN INVESTMENTGRADE RATING TO THE DOLLAR DEBT OF ANY LATIN AMERICAN COUNTRY EXCEPT CHILE IN EFFECT BILLIONS OF DOLLARS IN LATIN AMERICAN CORPORATE DEBT CARRY A JUNK RATING BUT WALL STREET AND ITS BIG BOND CLIENTS SUCH AS FIDELITY INVESTMENTS' FIDELITY MANAGEMENT & RESEARCH AND ALLIANCE CAPITAL MANAGEMENT SEE PLENTY OF POSITIVE SIGNS IN LATIN AMERICA THEY THINK COUNTRIES SUCH AS MEXICO WILL SOON BE UPGRADED AND THEY BELIEVE MANY CORPORATIONS DESERVE A HIGHER RATING THAN THEIR HOME COUNTRIES SO THEY'RE MAKING THE RISKY BET THAT THE MARKET REWARDS GOOD BALANCE SHEETS AND STRONG EARNINGS OF SOME LATIN COMPANIES AND PLAYS DOWN THEIR HOME ADDRESSES LATIN AMERICAN COMPANIES STARVED FOR CAPITAL HAVE SOLD 102 BILLION IN BONDS OUTSIDE THEIR HOME MARKETS DURING THE PAST 17 MONTHS ACCORDING TO THE MAGAZINE LATINFINANCE EMERGING MARKETS ARE LIKE THE JUNKBOND MARKETS OF THE LATE 1970S SAYS CURTISS BARROWS MANAGER OF THE PHOENIX HIGHYIELD FUND THERE IS A LOT OF OPPORTUNITY IF YOU ARE WILLING TO SPEND TIME ANALYZING THE RISK PHOENIX HIGHYIELD RANKS 11TH AMONG JUNKBOND FUNDS TRACKED BY LIPPER ANALYTICAL SERVICES WITH A 177 RETURN FOR THE YEAR THROUGH APRIL PART OF THAT GAIN CAME FROM HIGHYIELD LATIN BONDS SUCH AS FIVEYEAR 9 1/2 NOTES OF FOMENTO ECONOMICA MEXICANO SA A CONGLOMERATE IF I COULD HAVE 100 OF MY PORTFOLIO IN LATIN AMERICA I COULD SLEEP BETTER AT NIGHT MR BARROWS SAYS THERE IS MORE CREDIT RISK THESE DAYS IN THE DOMESTIC JUNKBOND MARKET MILKEN IS INTRIGUED EVEN MICHAEL MILKEN THE ONETIME CHAMPION OF JUNK BONDS IS INTRIGUED BY THE PARALLELS BETWEEN LATIN BOND INVESTING AND JUNKBOND INVESTING ASIDE FROM COUNTRY RISK THE SAME ISSUES ARISE HE SAID IN A TELEPHONE INTERVIEW MANY TIMES LEADING COMPANIES ARE NOT INVESTMENTGRADE MR MILKEN SAYS HE'S A LARGE INVESTOR IN EMERGING MARKET BONDS THROUGH A FUND MANAGED BY TRUST CO OF THE WEST IN LOS ANGELES THE FUND HAS AVERAGED RETURNS OF 25 A YEAR SINCE THE LATE 1980S MR MILKEN WHO HEADED THE LATE DREXEL BURNHAM LAMBERT'S JUNKBOND DEPARTMENT PLEADED GUILTY TO SIX SECURITIESRELATED FELONY CHARGES THE EBULLIENCE OVER LATIN AMERICAN CREDITS WAS UNDERSCORED RECENTLY WHEN CEMENTOS MEXICANOS SA THE MEXICAN CEMENT COMPANY SOLD 1 BILLION IN FIVEYEAR EURONOTES THE LARGEST LATIN AMERICAN CORPORATEBOND OFFERING EVER THE ISSUE WAS PRICED TO YIELD 899 OR 37 PERCENTAGE POINTS MORE THAN THE COMPARABLE US TREASURY NOTE ONLY 10 YEARS AGO LATIN AMERICAN COMPANIES WERE NEARLY LOCKED OUT OF THE CAPITAL MARKETS AS THEIR GOVERNMENTS DEFAULTED ON TENS OF BILLIONS OF DOLLARS IN COMMERCIAL BANK DEBT BUT IN 1990 MEXICO BECAME A PILOT PROJECT FOR THE BRADY PLAN NAMED AFTER THENTREASURY SECRETARY NICHOLAS BRADY THIS PLAN TURNED BILLIONS OF DOLLARS OF BAD BANK DEBT INTO TRADABLE BONDS SECURED IN MOST CASES BY US TREASURY NOTES IN TURN DEVELOPING NATIONS AGREED TO MAKE SPECIFIC ECONOMIC REFORMS NOW ONLY THREE YEARS LATER AN 83 BILLION BOND MARKET FOR BRADY BONDS HAS SPROUTED UP INCLUDING THOSE FROM COUNTRIES SUCH AS ARGENTINA AND VENEZUELA IN EFFECT THE US GOVERNMENT FACILITATED A MULTIBILLION DOLLAR TRANSFER OF COUNTRIES' DEBTS FROM BANKS TO INSTITUTIONAL INVESTORS AND MUTUAL FUNDS TODAY THE SECOND EFFECT OF THE BRADY PLAN IS ROLLING THROUGH THE MARKETS AS ECONOMIC REFORMS TAKE HOLD IN MEXICO INVESTORS ARE BETTING THAT NOT ONLY THE CREDIT QUALITY OF THE WHOLE COUNTRY BUT ALSO ITS CORPORATIONS WILL IMPROVE OF ALL COUNTRIES MEXICAN BONDS HAVE BECOME A SOURCE OF SOME OF THE MOST WILD CREDIT SPECULATION WHERE INVESTORS BET THAT THE HIGH YIELDS ARE ABOVE WHAT IS WARRANTED BY THE CREDIT RISKS BIG BOND BUYERS SIT THERE AND SAY MEXICO IS GOING TO BE RATED INVESTMENTGRADE THEREFORE LET'S FRONTRUN' THE RATING AND BUY THE BONDS NOW SAYS RICHARD WATKINS CHIEF EXECUTIVE OF LATINVEST SECURITIES LTD A LONDON INVESTMENT FIRM WAYNE LYSKI SENIOR VICE PRESIDENT IN CHARGE OF ALLIANCE CAPITAL'S 10 BILLION BOND PORTFOLIO SAYS WE DO OUR OWN CREDIT RATING HE ADDS I THINK THE WHOLE MEXICAN CORPORATE MARKET IS MISPRICED BECAUSE OF THE COUNTRY CAP' IMPOSED BY S&P AND MOODY'S NOW THAT INSTITUTIONS ARE STEPPING AROUND THE CREDITRATING SERVICES PRICING HAS BECOME CONTROVERSIAL BEAR STEARNS RECENTLY SOLD 200 MILLION IN 10YEAR NOTES FOR TRANSPORTACION MARITIMA MEXICANA THE MEXICAN SHIPPING COMPANY AT A YIELD OF 3375 PERCENTAGE POINTS ABOVE THE 10YEAR US TREASURY NOTE SOME INVESTORS THOUGHT THE ISSUE'S YIELD WAS TOO LOW FOR THE RISK THIS IS A PERFECT EXAMPLE OF A MARKET THAT'S GONE CRAZY SAYS ASHWIN VASAN INTERNATIONAL FIXEDINCOME ANALYST AT OPPENHEIMER MANAGEMENT CORP FOR TAKING A 10YEAR RISK IN MEXICO IN AN INDUSTRY WHICH WILL BE SUBJECT TO COMPETITION THIS BOND WAS GROSSLY OVERPRICED HE SAYS HE THINKS THE BOND COULD FALL IN PRICE BEAR STEARNS OFFICIALS SAY THE DEAL WAS ATTRACTIVELY PRICED FOR BOTH THE ISSUER AND THE BUYERS THEY NOTE THAT THE BOND TODAY HAS RISEN IN PRICE RELATIVE TO 10YEAR TREASURYS AND YIELDS HAVE DRAWN EVEN CLOSER TO THE US BENCHMARK DARIO PEDRAJO PORTFOLIO MANAGER AT VESTCOR PARTNERS IN MIAMI SAYS I AM MORE SURPRISED THAT OF THE LAST 50 ISSUES 99 OF THEM HAVE TRADED UP IN PRICE INSTITUTIONAL INVESTORS ARE BUYING WITH MUCH GREATER AGGRESSIVENESS THAN I HAVE EVER SEEN NEW BUYERS APPEAR EVERY DAY ON MAY 4 FIDELITY LAUNCHED THE NEW MARKETS INCOME FUND MANAGER ROBERT CITRONE IS LOOKING TO REAP A RETURN OF 12 TO 15 A YEAR BUYING BONDS WITH YIELDS THAT DON'T TRULY REFLECT THE CREDIT RISK HE SAYS WE VIEW MEXICO AS INVESTMENTGRADE ALREADY RARELY HAVE THE SENTINELS OF CREDIT RISK MOODY'S AND S&PFACED SUCH DEFIANCE FROM THEIR CLIENTS TO BE SURE THE COSTS OF SUCH DEFIANCE ARE STILL UNCOUNTED MR VASAN OF OPPENHEIMER NOTES THERE ARE NO TRADITIONAL BUSINESS CYCLES IN EMERGING LATIN COUNTRIES AND FOR ALL THE EXCITEMENT THE NORTH AMERICAN FREE TRADE AGREEMENT WILL CERTAINLY DEMOLISH SOME MEXICAN INDUSTRIES THAT MEANS SOME BONDHOLDERS WILL BE PLUNGED INTO BANKRUPTCY PROCEEDINGS IN A LEGAL SYSTEM THEY SCARCELY UNDERSTAND HE WARNS FOR THEIR PART BOTH S&P AND MOODY'S BELIEVE THEY HAVE SOUND REASONS FOR NOT GRANTING MEXICO OR OTHER DEVELOPING COUNTRIES AND THEIR COMPANIES AN INVESTMENTGRADE RATING ON BONDS DENOMINATED IN CURRENCIES OTHER THAN THEIR HOME MARKET'S SOME LATIN COUNTRIES HAVE INVESTMENTGRADE RATINGS IN LOCALCURRENCY DEBT BUT DOLLARDENOMINATED DEBT PRESENTS SEVERAL PROBLEMS IN TIMES OF ECONOMIC STRAIN CENTRAL BANKS CAN IMPOSE RIGID CURRENCY CONTROLS THEY SAY A VENEZUELAN COMPANY THAT ISSUED DEBT IN DOLLARS MAY SUDDENLY NOT BE ALLOWED TO TRANSFER DOLLARS OUT OF THE COUNTRY TO PAY INTEREST FOR EXAMPLE OR BONDHOLDERS RECEIVING INTEREST IN LOCAL CURRENCY SUCH AS MEXICAN PESOS MIGHT FIND THAT THEY AREN'T ABLE TO CONVERT THE CURRENCY BACK INTO DOLLARS AT THE EXPECTED EXCHANGE RATE IN RARE INSTANCES SOME SPECIALIZED FINANCINGS OR BUSINESS UNITS HAVE RECEIVED INVESTMENTGRADE RATINGS MOODY'S RECENTLY RATED A 100 MILLION BOND ISSUE OF ANDEAN DEVELOPMENT CORP A MULTILATERAL DEVELOPMENT BANK INVESTMENT GRADE BUT IN A RECENT RATING OF MEXICAN GOVERNMENT DEBT MOODY'S REMINDED INVESTORS THAT MEXICO IS A NATION OF LOW PERCAPITA INCOME WITH A DEGREE OF UNCERTAINTY OVER ITS POLITICAL FUTURE AND A STILLFRESH HISTORY OF FINANCIAL INSTABILITY MR WATKINS OF LATINVEST CALLS THE CREDIT GUESSINGGAME IN LATIN BONDS ONE OF THE WORLD'S GREATEST ARBITRAGE OPERATIONS BECAUSE INVESTORS THINK THEY'RE BUYING A GOOD VALUE THAT THE MARKET AND CREDITRATING SERVICES DON'T RECOGNIZE BUT HE MARVELS AT HOW QUICKLY THE INVESTORS FORGET LATIN AMERICA'S HISTORY WITH DEBT THE FIRST DEFAULTS WERE IN THE 1820S HE LAUGHS INVESTORS HAVE TRADITIONALLY GOTTEN OVEREXCITED ABOUT LATIN AMERICA 9306100091 930610 GENERAL RE CREATES FIRM TO REINSURE AGAINST DISASTERS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL RE CORP THE NATION'S LARGEST REINSURANCE COMPANY IS CREATING A NEW COMPANY TO REINSURE AGAINST PROPERTY CATASTROPHES HELPING TO FILL THE VOID CREATED BY FINANCIAL DISTRESS AT LLOYDS OF LONDON GENERAL RE HAS INVESTED 100 MILLION IN CASH INTO TEMPEST REINSURANCE CO A NEW COMPANY BASED IN BERMUDA AND IS LOOKING FOR OTHER INVESTORS TO PUT UP AN ADDITIONAL 400 MILLION CATASTROPHE REINSURANCE HAS BEEN IN SHORT SUPPLY SINCE THE LATE 1980S WHEN LLOYDS OF LONDON BEGAN TO ENCOUNTER FINANCIAL DIFFICULTIES SHORTAGES BECAME EVEN MORE ACUTE FOLLOWING HURRICANE ANDREW IN AUGUST FIVE YEARS AGO AN INSURANCE COMPANY WOULD PAY ABOUT 20 MILLION FOR 100 MILLION OF REINSURANCE PROTECTION NOW THE PRICE IS TWICE THAT SAID KIRK ROESER A REINSURANCE CONSULTANT WITH GILL & ROESER IN NEW YORK THERE'S BEEN A VERY DRAMATIC DECLINE IN CAPACITY HE SAID GENERAL RE HOPES TO CAPITALIZE ON THE RISING PRICES FOR CATASTROPHE REINSURANCE WE THINK AT THE RIGHT PRICE THIS CAN BE A PROFITABLE BUSINESS SAID A SPOKESMAN FOR GENERAL RE BASED IN STAMFORD CONN IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY GENERAL RE SHARES JUMPED 2625 OR 24 TO 11175 GENERAL RE SAID TEMPEST WILL OPERATE UNDER ITS OWN MANAGEMENT AND MAKE CONTRACTS WITH GENERAL RE FOR CERTAIN UNDERWRITING AND INVESTMENT MANAGEMENT SERVICES TEMPEST WILL OPERATE IN BERMUDA BECAUSE OF LOWER TAXES AND LOOSER REGULATIONS PEOPLE FAMILIAR WITH TEMPEST SAY NEW YORKBASED AMERICAN INTERNATIONAL GROUP INC IS EXPECTED TO PUT UP 25 MILLION IN THE NEW COMPANY A SPOKESMAN FOR AIG SAID OFFICIALS WEREN'T AVAILABLE TO COMMENT MR ROESER ESTIMATES THAT ABOUT 15 BILLION OF NEW CAPITAL IS COMING INTO THE PROPERTY CATASTROPHE REINSURANCE BUSINESS HE SAID THE CAPITAL WILL STILL BE INSUFFICIENT TO MEET ALL THE DEMAND FOR REINSURANCE AND HE SAID REINSURANCE PRICES WILL REMAIN HIGH FOR SOME TIME IT WILL BE A LONG TIME BEFORE YOU SEE OVERSUPPLY HE SAID REINSURANCE BROKER WILLCOX INC A REINSURANCE UNIT OF JOHNSON & HIGGINS IS AMONG THOSE WORKING TO LAUNCH A SIMILAR VENTURE IN ADDITION AIG IS CREATING A COMPANY INDEPENDENT OF A POSSIBLE INVESTMENT IN TEMPEST AT THE COMPANY'S ANNUAL MEETING IN MAY CHAIRMAN MAURICE GREENBERG SAID THE NEW COMPANY OF WHICH IT WOULD OWN 25 WOULD BE ESTABLISHED BY THE END OF JULY USF&G CORP IS ALSO IN THE PROCESS OF SETTING UP A NEW OFFSHORE COMPANY AND AN ANNOUNCEMENT COULD COME WITHIN DAYS 9306100090 930610 BUSINESS BRIEF EAST ASIATIC CO DANISH CONCERN TO ACQUIRE PLUMROSE MEATPACKING UNITS DENMARK'S EAST ASIATIC CO SAID IT AGREED TO SELL ITS PLUMROSE PROCESSED MEATPACKING UNITS IN THE US AND THE UNITED KINGDOM TO THE WEST JUTLAND SLAUGHTERHOUSE GROUP OF DENMARK IN ADDITION THE TWO COMPANIES PLAN A PRODUCTION AND SALES AGREEMENT FOR GERMAN PLANTS THAT COULD LEAD TO A PARTIAL OR TOTAL TAKEOVER IN THE FUTURE THE US PROPERTIES INCLUDE TWO PROCESSING PLANTS IN MISSISSIPPI AND INDIANA AS WELL AS OFFICE AND STORAGE FACILITIES IN NEW JERSEY PLUMROSE USA WILL CONTINUE TO OPERATE CALIFORNIA STORAGE AND DISTRIBUTION FACILITIES ON A LEASED BASIS THE US UNIT'S SALES IN 1993 ARE EXPECTED TO BE ABOUT 160 MILLION INCLUDING IMPORTED AND DOMESTIC HAM BACON TURKEY CHICKEN AND BEEF PRODUCTS 9306100089 930610 TECHNOLOGY FTC TO RECONSIDER CHARGES THAT MICROSOFT ENGAGES IN UNFAIR TRADE WASHINGTON THE FEDERAL TRADE COMMISSION AT A JULY 21 MEETING IS SCHEDULED TO AGAIN CONSIDER ALLEGATIONS THAT MICROSOFT CORP ENGAGES IN UNFAIR TRADING PRACTICES IN FEBRUARY THE COMMISSIONERS ON A 22 VOTE DECLINED TO FOLLOW A STAFF RECOMMENDATION TO SEEK A PRELIMINARY INJUNCTION AGAINST THE REDMOND WASH COMPUTER SOFTWARE COMPANY THE FIRM HAS BEEN ACCUSED OF USING THE MARKET POWER OF ITS MSDOS COMPUTER DISK OPERATING SYSTEM TO COMPETE UNFAIRLY IN THE SOFTWARE MARKET IN JULY THE FTC MAY DECIDE TO TAKE ADMINISTRATIVE ACTION RATHER THAN COURT ACTION AGAINST MICROSOFT OR DROP THE CASE A COURTIMPOSED PRELIMINARY INJUNCTION WOULD HAVE STOPPED ANY ALLEGED ANTICOMPETITIVE BEHAVIOR IMMEDIATELY THE ADMINISTRATIVE PROCESS IS LONGER WITH THE COMMISSION ISSUING A COMPLAINT THAT WOULD BE HEARD BY AN ADMINISTRATIVE LAW JUDGE WHOSE DECISION COULD BE APPEALED BACK TO THE FTC AND THEN TO THE US COURT OF APPEALS SINCE FEBRUARY THE COMMISSIONERS HAVE RECEIVED ADDITIONAL INFORMATION FROM THE FTC STAFF WHICH HAS BEEN WORKING ON THE MICROSOFT CASE FOR NEARLY THREE YEARS 9306100088 930610 BUSINESS BRIEF VANGUARD GROUP FEUD OVER TITLE IS SETTLED NEWSLETTER HAS NEW NAME VANGUARD GROUP SAID IT SETTLED ITS FEUD WITH A NEWSLETTER DEVOTED TO THE 113 BILLIONASSETS VALLEY FORGE PA FUND GROUP IN FEBRUARY VANGUARD FILED A LAWSUIT AGAINST THE VANGUARD ADVISER TO STOP THE INDEPENDENT BOSTON NEWSLETTER FROM USING VANGUARD IN ITS NAME THE GROUP ANNOUNCED YESTERDAY THAT IT WAS WITHDRAWING ITS SUIT AFTER THE NEWSLETTER AGREED TO CHANGE ITS NAME TO THE INDEPENDENT ADVISER FOR VANGUARD INVESTORS WE'VE AGREED TO MODIFY THE NAME OF THE NEWSLETTER AND THEY'VE AGREED TO ALLOW US ACCESS TO THEIR EXECUTIVES PORTFOLIO MANAGERS AND TO PROVIDE DATA SAYS DANIEL WIENER THE NEWSLETTER'S EDITOR I DON'T FEEL WE GAVE UP MUCH OF ANYTHING 9306100087 930610 DOING WELL A LAW FIRM SHOWS CIVIL RIGHTS CAN BE A LUCRATIVE BUSINESS SAPERSTEIN CAREFULLY SELECTS AND TENACIOUSLY PURSUES DEEPPOCKETED TARGETS INSPIRED BY THE GLOBETROTTERS BY BENJAMIN A HOLDEN STAFF REPORTER OF THE WALL STREET JOURNAL OAKLAND CALIF GUY T SAPERSTEIN IS REVOLUTIONIZING CIVILRIGHTS LAW BY MAKING IT PROFITABLE EMBARRASSINGLY SO IN THE EYES OF SOME OF HIS COLLEAGUES IN THE PAST 14 MONTHS HE HAS NEGOTIATED THE BIGGEST SEXDISCRIMINATION AWARD EVER 239 MILLION AGAINST STATE FARM INSURANCE COS SHONEY'S INC HAS AGREED TO PAY HIS CLIENTS 1325 MILLION IN A RACEBIAS SUIT AND HE HAS WON A COURT VICTORY AGAINST LUCKY STORES INC THAT IS LIKELY TO YIELD DAMAGES OF MORE THAN 90 MILLION NOW A SUIT CLAIMING THAT DENNY'S INC DISCRIMINATES AGAINST BLACK CUSTOMERS IS ON THE FRONT BURNER THE BIGGEST WINNER IN SUCH CLASSACTION CASES TYPICALLY THE 24LAWYER FIRM OF SAPERSTEIN MAYEDA LARKIN & GOLDSTEIN IN WHICH MR SAPERSTEIN HOLDS MORE THAN A 75 INTEREST THE FIRM NETTED AN ASTONISHING 65 MILLION IN FEES IN THE STATE FARM CASE ALONE WE'RE ALL GREEN WITH ENVY SAYS THOMAS R MEITES A SUCCESSFUL CHICAGOBASED CIVILRIGHTS LITIGATOR HE CONCLUDES THAT MR SAPERSTEIN IS EITHER THREE OR FOUR TIMES MORE TENACIOUS AND MORE INVENTIVE THAN THE REST OF US OR HE'S FOUND A FEW GOOD CASES IT'S PROBABLY A LITTLE OF BOTH ACTUALLY MR SAPERSTEIN SEEMS TO OWE HIS SUCCESS LARGELY TO HIS INSISTENCE ON TREATING CIVILRIGHTS LAW AS A BUSINESS WHILE MANY OF HIS COMPETITORS VIEW IT MORE AS A MISSION PUBLICINTERESTORIENTED LAWYERS DON'T MAKE AS MUCH MONEY AS THEY MIGHT HE SAYS BECAUSE THEY DISDAIN THE KIND OF ANALYSIS COMMERCIAL LAWYERS DO EVERY DAY OF THE WEEK THE STATE FARM CASE ILLUSTRATES HOW MR SAPERSTEIN WORKS THOUGH HARDLY A COUCH POTATO HE HAPPENED TO NOTICE DURING A RUN OF TV COMMERCIALS IN THE 1970S THAT ALL OF THE COMPANY'S GOOD NEIGHBOR AGENTS WERE MEN FOLLOWING A HUNCH HE HAD PARALEGALS SCOUR TELEPHONE BOOKS LOOKING FOR STATE FARM LISTINGS WITH FEMALE AGENTS THEY FOUND NONE AND MR SAPERSTEIN SENSED A LAWSUIT IN THE MAKING TO STEER CLEAR OF ETHICS RULES AGAINST SOLICITING CLIENTS DIRECTLY HE GOT HIMSELF QUOTED IN LOCAL NEWSPAPERS CLAIMING THAT SEX DISCRIMINATION WAS RAMPANT AT SOME BIG INSURERS ONE READER WAS A FORMER STATE FARM SECRETARY NAMED MURIEL E KRYSZEWSKI WHO ALSO READ BETWEEN THE LINES AND CALLED MR SAPERSTEIN THE LAWSUIT THEY LAUNCHED IN 1979 TOOK ADVANTAGE OF CLASSACTION RULES THAT ALLOW AN INDIVIDUAL PLAINTIFF TO STAND IN FOR ANYONE WHO IS SIMILARLY SITUATED THE LAW FIRM LITIGATED AND NEGOTIATED FOR 13 CONTENTIOUS YEARS WEARING DOWN ITS OPPONENT AND THOROUGHLY EXASPERATING OPPOSING COUNSEL AT THE VENERABLE 600LAWYER MORRISON & FOERSTER ACROSS THE BAY IN SAN FRANCISCO MORRISON LAWYERS TOOK TO CALLING SAPERSTEIN LAWYERS THE SAPS EACH FIRM NOW CLAIMS THE OTHER CHURNED THE CASE DODGED THE MERITS AND CHARGED EXCESSIVE FEES FINALLY IN APRIL 1992 STATE FARM SETTLED LARGELY INSISTS MORRISON'S LEAD LITIGATOR ON THE CASE KIRBY WILCOX BECAUSE STATE FARM WANTED TO PUT AN END TO MOUNTING LEGAL COSTS ABOUT 1000 WOMEN ARE SHARING IN THE AWARD WHICH INCLUDES 420000 FOR MRS KRYSZEWSKI THE COMMON DENOMINATOR IN MR SAPERSTEIN'S VICTORIES IS HIS ABILITY TO IDENTIFY AND THEN GENEROUSLY FINANCE BIG CASES WITH MULTIPLE PLAINTIFFS THIS GIVES HIM A HUGE EDGE OVER LAWYERS WHO DON'T HAVE THE RESOURCES TO DO SUCH SOPHISTICATED RESEARCH OR WHO CHOOSE CASES BASED SOLELY ON THEIR LIKELY SOCIAL RATHER THAN FINANCIAL IMPACT WHILE MOST CIVILRIGHTS LAWYERS WORK FOR MEAGER PAY HANDLING POLICEBEATING CASES OR WRONGFUL FIRINGS OF INDIVIDUALS MR SAPERSTEIN SAYS PROUDLY THAT HE SWINGS FOR THE FENCES MR SAPERSTEIN WHO IS 49 SAYS HIS DUAL COMMITMENT TO PROFIT AND PRINCIPLE RELATES TO HIS CHILDHOOD EXPERIENCE AS A BALL BOY FOR THE HARLEM GLOBETROTTERS HE WATCHED HIS UNCLE AND TEAM FOUNDER ABE SAPERSTEIN PROVIDE BLACK BASKETBALL PLAYERS WITH THE SHOWCASE THEY WERE BEING DENIED IN THE NATIONAL BASKETBALL ASSOCIATION WHILE MAKING A GOOD LIVING FOR HIMSELF LIKE UNCLE ABE THE YOUNGER MR SAPERSTEIN SAYS I DON'T LIKE TO SEE PEOPLE GETTING PUSHED AROUND IT'S THE UNFAIRNESS THAT TURNS ME ON EARLY IN HIS CAREER HE SEEMED TO FOCUS MORE ON THE SOCIALJUSTICE LESSONS HE HAD LEARNED THAN ON THE FINANCIAL ONES HE WORKED AS AN ANTIPOVERTY LAWYER IN COLORADO THEN MOVED INTO PRIVATE PRACTICE IN CALIFORNIA IN 1972 EARNING A CERTIFICATE THAT YEAR FROM HUEY P NEWTON AND BOBBY SEALE FOR HANDLING A MURDER CASE WITHOUT PAY FOR THE BLACK PANTHERS BUT AS TIME PASSED AND HIS LEGAL BUSINESS GREW MORE SUCCESSFUL HE DISCOVERED THAT MONEY TURNED HIM ON AS WELL HE AND HIS WIFE JEAN NOW LIVE IN A SPACIOUS MEDITERRANEANSTYLE HOME IN THE BERKELEY HILLS MRS SAPERSTEIN HAS A PERSONAL TRAINER AND A SECRETARY TO HELP COORDINATE HER INVOLVEMENT IN LOCAL POLITICS AND PHILANTHROPY AND THE SAPERSTEINS HAVE SHELLED OUT THOUSANDS OF DOLLARS TO PSYCHICS WHO HAVE INFORMED THE COUPLE OF THEIR 11 PASTLIFE MARRIAGES TO EACH OTHER USUALLY MR SAPERSTEIN HAS BEEN THE WIFE THEIR THREEBMW LIFESTYLE HAS BECOME CAUSE FOR DERISION AMONG SOME IN THE CIVILRIGHTS COMMUNITY BUT MR SAPERSTEIN INSISTS THAT HIS COMMITMENT TO SOCIAL CHANGE IS PERFECTLY CONSISTENT WITH HIS VIEW THAT CIVILRIGHTS LAW CAN BE A LUCRATIVE CALLING GUY HAS ALWAYS BEEN OUT AHEAD OF THE CROWD SAYS MRS SAPERSTEIN WHO MET HIM AT A WELFARERIGHTS RALLY IN JUNE 1967 AND MARRIED HIM SIX MONTHS LATER SHE SAYS HER HUSBAND IS AGAIN PIONEERING THIS TIME IN MAKING IT ACCEPTABLE TO MAKE MONEY AS A CIVILRIGHTS LAWYER HE DOESN'T FEEL HE HAS TO BE AS POOR AS HIS CLIENTS TO BE POLITICALLY CORRECT SHE ADDS MR SAPERSTEIN'S BUSINESSLIKE APPROACH TO CIVILRIGHTS WORK HAS INCLUDED BUILDING AND MAINTAINING A THICK FILE CATALOGING THE POTENTIALLY DISCRIMINATORY PRACTICES OF VARIOUS LARGE NORTHERN CALIFORNIA EMPLOYERS IN THIS SENSE MR SAPERSTEIN'S TECHNIQUE MOST RESEMBLES THAT OF SUCCESSFUL SHAREHOLDERS' LAWYERS WHO ALSO TYPICALLY SEEK OUT LIKELY TARGETS INSTEAD OF WAITING FOR CLIENTS TO COME FORWARD WITH COMPLAINTS ON THEIR OWN AS MR SAPERSTEIN SHOWED IN THE KRYSZEWSKI CASE WHEN THE TIME TO FILE A LAWSUIT ARRIVES THE RIGHT CLIENT CAN USUALLY BE FOUND IN THE 1970S MR SAPERSTEIN FOCUSED ON INSURANCE COMPANIES SUCH AS STATE FARM THAT HE SAYS HAD REFUSED TO HIRE WOMEN TO WORK AS AGENTS NOW THE LAW FIRM IS GATHERING DATA TO DOCUMENT WHAT HE CLAIMS IS RAMPANT AGE DISCRIMINATION IN THE INSURANCE SECURITIES AND BANKING INDUSTRIES BUT MR SAPERSTEIN SAYS HE USUALLY WON'T SUE COMPANIES WITH ISOLATED PROBLEMS ONLY THOSE WITH A PATTERN OF DISCRIMINATION THAT IS WHY HE SAYS STATE FARM AND THE LUCKY STORES UNIT OF AMERICAN STORES CO HAVE BECOME REPEAT TARGETS HIS FIRM HAS SUED STATE FARM IN FEDERAL COURT FOUR TIMES FOR SEX RACE OR AGE DISCRIMINATION AND HAS WON OR SETTLED THREE WITH THE FOURTH CASE PENDING SAPERSTEIN MAYEDA HAS WON OR SETTLED TWO OF THE THREE FEDERAL CLASS ACTIONS BROUGHT AGAINST LUCKY STORES AND IS PURSUING ANOTHER SUIT IN CALIFORNIA CRANFORD A INGHAM VICE PRESIDENT AND GENERAL COUNSEL FOR STATE FARM ACKNOWLEDGES PAST POCKETS OF DISCRIMINATION BUT SAYS THAT THE LARGE SIZE OF THE COMPANY NOT ITS CORPORATE CULTURE EXPLAINS THE MULTIPLE LAWSUITS WE THINK OUR HOUSE IS IN EXCELLENT ORDER ON THE DISCRIMINATION ISSUE HE ADDS LUCKY STORES HAS NO COMMENT MR SAPERSTEIN ONLY HALFJOKINGLY SAYS HE INTENDS TO PUT MORRISON & FOERSTER'S LABOR DEPARTMENT WHICH DEFENDS BOTH STATE FARM AND LUCKY STORES OUT OF BUSINESS AND HE MAKES NO APOLOGIES FOR HIS AGGRESSIVE TACTICS OR HIS FEES WHICH PROVIDE THE LAW FIRM BETWEEN 20 AND 35 OF ANY RECOVERY THANKS IN LARGE MEASURE TO THE KRYSZEWSKI PAYOUT HIS FIRM HAS EARNED A TOTAL OF BETWEEN 25 MILLION AND 30 MILLION ON REVENUE OF ABOUT 80 MILLION OVER THE PAST FIVE YEARS AND THIS DOESN'T INCLUDE ROUGHLY 10 MILLION IN FEES THE FIRM HASN'T YET RECEIVED FROM THE LUCKY STORES CASE AS WELL AS ABOUT 10 MILLION FROM OTHER SETTLEMENTS SUCH SUCCESS HAS GIVEN SAPERSTEIN MAYEDA A WAR CHEST TO FINANCE NEW CASES SOME WITH FAROFF PAYDAYS HAVING MONEY FOR RESEARCH ALSO ENABLES THE FIRM TO MAKE SMARTER DECISIONS ABOUT WHICH LAWSUITS TO FORGO FOR EXAMPLE IT RECENTLY SPENT 50000 CHECKING OUT A RACEDISCRIMINATION ALLEGATION AGAINST A NATIONAL FRANCHISER THEN CONCLUDED THAT THE FACTS WEREN'T SUFFICIENTLY CLEARCUT TO JUSTIFY A SUIT THE CASE WASN'T ECONOMICALLY VIABLE MR SAPERSTEIN EXPLAINS YET HIS POLICY OF BASING CASE SELECTION AS MUCH ON ECONOMICS AS ON CONSCIENCE TROUBLES SOME OF HIS OWN LAWYERS PARTICULARLY ASSOCIATES WHO CAME TO THE FIRM HOPING TO EFFECT SOCIAL CHANGE I THOUGHT THERE WOULD BE MUCH MORE COMMITMENT TO THE CLIENTS AND THE NEED TO MAKE CHANGE LASTING CHANGE SAYS ONE ASSOCIATE SOME LAWYERS AT THE FIRM COMPLAIN THAT IT IS CURRENTLY HANDLING ONLY TWO CASES BROUGHT BY INDIVIDUALS EVEN THOUGH SUCH CASES SOMETIMES CAN SET IMPORTANT LEGAL PRECEDENTS THE REST ARE CLASS ACTIONS TYPICALLY BROUGHT ON BEHALF OF HUNDREDS OR THOUSANDS OF PEOPLE AND LIKELY TO GENERATE BIG FEES OUTSIDE THE FIRM THIS DOESN'T SIT WELL WITH THE LIKES OF SOUTHERN CIVILRIGHTS VETERAN BILL CALDWELL WHO ARGUES THAT THERE IS IMPORTANT WORK TO BE DONE FOR MINORITIES IN LAWSUITS THAT AREN'T NECESSARILY MULTIMILLIONDOLLAR CASES MR SAPERSTEIN RESPONDS THAT IT IS HIS FIRM'S BUSINESS STRATEGY TO PRACTICE WITHIN SETTLED LEGAL CONCEPTS RATHER THAN TRY TO PLOW NEW GROUND WE'RE NOT A LAWREFORM OUTFIT HE SAYS WHILE NOTING THAT HE STILL PICKS HIS CASES FROM A UNIVERSE LIMITED TO POLITICALLY CORRECT ISSUES YET MR SAPERSTEIN'S CASESELECTION METHODS DOVETAIL WITH HIS HARDHEADED AND CONTROVERSIAL APPROACH TO LAWOFFICE MANAGEMENT THE FIRM SIGNS UP LARGE NUMBERS OF TEMPORARY CONTRACT LAWYERS TO KEEP LONGTERM OVERHEAD LOW WHEN A CASE IS COMPLETED MANY ARE LAID OFF AS HAPPENED LAST YEAR WHEN THE FIRM HAD BOTH RECORD PROFITS AND LAYOFFS THE REPEATED HIRINGS AND FIRINGS HAVE CREATED A GREAT DEAL OF RESENTMENT ALONG WITH SOME STRANGE CAREER PATHS I'VE ONLY BEEN HERE A YEAR AND A HALF AND I'VE BEEN HIRED THREE TIMES SAYS ASSOCIATE LINDA DARDARIAN EMPLOYEES' OTHER COMPLAINTS INCLUDE THE CRAMPED QUARTERS THAT RESULT FROM MR SAPERSTEIN'S CREATIVE LEASE ARRANGEMENT WHICH ENABLED HIM TO GIVE BACK SPACE AFTER THE KRYSZEWSKI CASE SETTLED AND REALIZE A 19000AMONTH SAVINGS THROUGH MAY 1995 IN ADDITION SOME ASSOCIATES OBJECT TO BEING PAID AS MUCH AS 25000 LESS THAN LAWYERS AT CORPORATEDEFENSE FIRMS THAT ARE NO MORE PROFITABLE THAN SAPERSTEIN MAYEDA MR SAPERSTEIN WHO SAYS THE CIVILRIGHTS BAR TENDS TO ATTRACT STARRYEYED IDEOLOGUES TELLS THE ASSOCIATES TO COMPARE THEIR PAY WITH THAT OF OTHER CIVILRIGHTS LAWYERS WHO MAKE CONSIDERABLY LESS THAN THE ROUGHLY 68000 THAT A MIDLEVEL ASSOCIATE EARNS AT SAPERSTEIN MAYEDA TO THIS ASSOCIATE JEREMY L FRIEDMAN RESPONDS I CAN'T TAKE PSYCHIC BENEFITS TO PAY OFF MY STUDENT LOANS WITH A LITTLE DISTANCE THOUGH SOME OF THE TOP CIVILRIGHTS LAWYERS OUTSIDE THE FIRM SHOW A GREAT DEAL OF RESPECT FOR THEIR MOST FINANCIALLY SUCCESSFUL COUNTERPART JUDITH VLADECK OF NEW YORK'S VLADECK WALDMAN ELIAS & ENGELHARD PC THE SELFDESCRIBED GRANDMOTHER OF PLAINTIFFS' CIVILRIGHTS LAWYERS SAYS MR SAPERSTEIN IS A GREAT HERO TO US ALL HE'S REALLY A SUPERSTAR OF LATE THIS REPUTATION HAS HELPED SAPERSTEIN MAYEDA ACQUIRE NEW LAWYERS AND BIG NEW CASES IN JULY 1989 MR SAPERSTEIN WOOED TO THE FIRM ONE OF THE BRIGHT LIGHTS OF THE CIVILRIGHTS BAR BARRY GOLDSTEIN THEN OF THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND INC MR GOLDSTEIN BROUGHT WITH HIM THE CASE CHARGING SHONEY'S WITH RACE DISCRIMINATION IN HIRING PROMOTION AND EMPLOYMENT THAT SUIT RESULTED IN THE NOVEMBER 1992 SETTLEMENT OF 1325 MILLION A STATEWIDE CUSTOMERDISCRIMINATION SUIT FILED AGAINST DENNY'S IN LATE MARCH LIKE MOST OF THE FIRM'S CURRENT CASELOAD WAS LANDED BECAUSE PLAINTIFFS OR THEIR ADVISERS KNEW SAPERSTEIN MAYEDA'S REPUTATION AND WANTED ITS FINANCIAL RESOURCES BEHIND THEM DENNY'S WHICH HAS SIGNED A SETTLEMENT OF A RELATED GOVERNMENT CIVILRIGHTS SUIT HAS SAID THE ALLEGED DISCRIMINATION IN SERVING BLACK CUSTOMERS WAS REALLY A PRODUCT OF LATENIGHT PROCEDURES IMPLEMENTED TO ADDRESS SECURITY CONCERNS AFTER NEARLY SETTLING WITH THE PRIVATE PLAINTIFFS REPRESENTED BY SAPERSTEIN MAYEDA PARENT COMPANY TW HOLDINGS INC HAS DECIDED TO FIGHT ON HAVING SUCCEEDED SO REMARKABLY MR SAPERSTEIN NOW SOMETIMES THREATENS TO CHUCK IT ALL ACCORDING TO ONE OF THE PSYCHICS HE HAS CONSULTED HE WILL LEAVE THE PRACTICE OF LAW SOON AND TAKE UP SOMETHING MYSTICAL OR SPIRITUAL BUT IF MR SAPERSTEIN STAYS AS HE PLEDGES IN HIS MORE PENSIVE MOMENTS TO DO THERE ARE MANY NEW OPPORTUNITIES THE AMERICANS WITH DISABILITIES ACT AND THE 1991 CIVIL RIGHTS ACT WILL CREATE NEW BASES FOR PLAINTIFFS' SUITS AND ADD NEW REMEDIES HE SAYS AND PRESIDENT CLINTON CAN BE EXPECTED TO APPOINT MANY FEDERAL JUDGES WITH MORE PROPLAINTIFF LEANINGS IN SUCH CASES THAN MANY OF THE REPUBLICAN APPOINTEES ELEVATED TO THE BENCH OVER THE PAST 12 YEARS ALSO ON THE HORIZON IS AN ANTICIPATED TRIAL UNDER THE FALSE CLAIMS ACT WHICH ALLOWS CORPORATE WHISTLEBLOWERS TO EARN A BOUNTY FOR EXPOSING WASTE AND FRAUD IN GOVERNMENT CONTRACTS MR SAPERSTEIN IS CLAIMING ON BEHALF OF US TAXPAYERS THAT LOCKHEED CORP CHARGED TAXPAYERS FOR TIME WORKERS SPENT SLEEPING IN CONFERENCE ROOMS AND PLAYING COMPUTER GAMES LOCKHEED DENIES THE CHARGES MR SAPERSTEIN WHO HAS NEVER TRIED A FALSE CLAIMS ACT CASE SAYS WE'RE REALLY ROLLING THE DICE WITH THIS ONE THE POTENTIAL PAYOFF HE BOASTS COULD EXCEED 1 BILLION SUCH FINANCIAL AMBITION MR SAPERSTEIN ACKNOWLEDGES ANGERS SOME WHO CLAIM HE MAKES TOO MUCH MONEY HIS CLIENTS SEEM PLEASED THOUGH I THINK HE DESERVES IT MRS KRYSZEWSKI SAYS HE WAITS A LONG TIME FOR PAYDAY AND I DON'T CARE HOW MANY MILLIONS IT IS 9306100085 930610 ECONOMY PANEL REJECTS CLINTON PLAN ON BANK FEES COMMITTEE VOTES TO ALTER THE WAY FDIC PAYS ON FAILED INSTITUTIONS BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE BANKING COMMITTEE REJECTED A CLINTON ADMINISTRATION PROPOSAL TO REQUIRE THE FEDERAL DEPOSIT INSURANCE CORP TO IMPOSE AN EXAMINATION FEE ON ABOUT 7000 SMALL BANKS BANKS HAD WORKED HARD TO DEFEAT THE FEE A DEFICITSHRINKING MEASURE THAT WOULD HAVE COST THEM 13 BILLION OVER FIVE YEARS SEN ALFONSE D'AMATO R NY LED THE FIGHT IN THE SENATE CALLING IT COUNTERPRODUCTIVE TO THE ADMINISTRATION'S EFFORTS TO EASE THE CREDIT CRUNCH BY INCREASING BANK LOANS TO SMALL BUSINESS INSTEAD THE COMMITTEE VOTED TO CHANGE THE WAY THE FDIC PAYS THE DEPOSITORS OF BANKS THAT FAIL AND TO REQUIRE THE FEDERAL RESERVE TO TRANSFER 213 MILLION FROM ITS SURPLUS TO THE TREASURY LIKE THE HOUSE WHICH HAD ADOPTED THE SAME PLAN EARLIER THE SENATE COMMITTEE APPROVED A NATIONWIDE DEPOSITOR PREFERENCE LAW THAT WOULD MANDATE THAT ALL DEPOSITORS BOTH INSURED AND UNINSURED IN A FAILED BANK GET PAID BEFORE OTHER CREDITORS CURRENTLY WHEN A BANK FAILS THE FDIC PROTECTS ALL DEPOSITS UP TO 100000 THE AGENCY THEN TRIES TO RECOVER THE COST OF PROTECTING THOSE DEPOSITS AS IT LIQUIDATES THE FAILED BANK BUT THE FDIC AS RECEIVER STANDS ON EQUAL FOOTING WITH UNINSURED DEPOSITORS TRYING TO RECOVER THE PORTION OF THEIR DEPOSITS ABOVE THE 100000 INSURANCE LIMIT AND OTHER CREDITORS DEPOSITOR PREFERENCE WHICH ALREADY APPLIES TO STATE BANKS IN NEARLY 30 STATES MEANS THAT THE FDIC AS A RECEIVER TRYING TO RECOUP THE COST OF PROTECTING INSURED DEPOSITORS AND UNINSURED DEPOSITORS WOULD GET PAID AHEAD OF OTHER CREDITORS THIS WOULD REDUCE GOVERNMENT LOSSES FROM BANK FAILURES BY ABOUT 900 MILLION DURING THE NEXT FIVE YEARS IT ALSO WOULD INCREASE RECOVERIES BY LARGE DEPOSITORS ON UNINSURED AMOUNTS OVER 100000 THE CLINTON ADMINISTRATION LAUNCHED AN 11TH HOUR EFFORT TO LIMIT THE SCOPE OF NATIONAL DEPOSITOR PREFERENCE ONLY TO INSURED DEPOSITS THIS WOULD HAVE DOUBLED OR TRIPLED RECOVERIES BY THE FDIC WHILE REDUCING THE AMOUNT DEPOSITORS WOULD RECOVER ON UNINSURED BALANCES SMALL BANKS OPPOSED THE CHANGE ARGUING THAT IT WOULD MAKE IT MORE DIFFICULT FOR THEM TO HOLD ON TO LARGE DEPOSITS THE BUDGET PACKAGE THE SENATE PANEL ADOPTED ALSO WOULD ALLOW THE GOVERNMENT NATIONAL MORTGAGE ASSOCIATION A FEDERAL AGENCY THAT ISSUES SECURITIES BACKED BY FEDERAL HOUSING ADMINISTRATION AND VETERANS AFFAIRS MORTGAGES TO ISSUE A TYPE OF SECURITY CALLED REMICS OR REAL ESTATE MORTGAGE AND INVESTMENT CONDUIT SECURITIES THE COMMITTEE SAID THE CHANGE SHOULD REDUCE THE COST OF FHA AND VA MORTGAGES BY INCREASING INVESTOR DEMAND FOR THEM IN THE SECONDARY MARKET IN ADDITION THE CHANGE ALREADY EMBRACED BY THE HOUSE WOULD CREATE BUSINESS FOR WALL STREET FIRMS WHICH WOULD PAY A FEE TO ISSUE THE SECURITIES THE CONGRESSIONAL BUDGET OFFICE ESTIMATES THAT FEES FROM UNDERWRITERS OF THE NEW GINNIE MAE REMICS WOULD TOTAL 740 MILLION OVER FIVE YEARS IT WOULD ALSO GENERATE COMPETITION FOR THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND THE FEDERAL HOME LOAN MORTGAGE CORP THE PRIVATELY OWNED GOVERNMENT CHARTERED CORPORATIONS THAT ALREADY SELL REMICS UNLIKE THE FANNIE AND FREDDIE REMICS THE GINNIE MAE REMICS WOULD CARRY A US GOVERNMENT GUARANTEE 9306100084 930610 MARKETING & MEDIA CITICORP OFFERS CARD HOLDERS WARRANTY FOR IT SAYS THE LIFE' OF GOODS PURCHASED BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IN A MOVE TO HOLD ONTO CREDIT CARD CUSTOMERS CITICORP IS OFFERING WHAT IT SAYS IS LIFETIME WARRANTIES ON CONSUMER PRODUCTS PURCHASED WITH ITS CREDIT CARDS BY REGISTERING PURCHASES WITH A PHONE CALL CITIBANK CUSTOMERS CAN EXTEND MANUFACTURERS' WARRANTIES FREE OF CHARGE FOR THE PURCHASES OF SCORES OF CONSUMER GOODS THE NEW PROGRAM REPLACES CITIBANK'S EXISTING EXTENDED WARRANTY PROGRAM WHICH DOUBLED THE LIFE OF A MANUFACTURERS' WARRANTY NEARLY 80 OF THE BANK'S 30 MILLION CARDHOLDERS WOULD BE ELIGIBLE TO RECEIVE THE NEW LONGERTERM WARRANTY BASED ON THEIR CREDITWORTHINESS THE MAXIMUM CLAIM IS 1000 AND TOTAL CLAIMS CANNOT EXCEED 2500 ANNUALLY THAT'S OF REAL VALUE FOR OUR CARDMEMBERS SAID RUVAN COHEN DIRECTOR OF MARKETING FOR CREDIT CARDS CONSUMERS OFTEN PAY EXTRA FOR EXTENDED WARRANTIES SO MANY CUSTOMERS COULD FIND THIS ATTRACTIVE BUT EXPERTS SAY IT IS A COSTLY MOVE CITIBANK MUST BUY INSURANCE TO COVER THE WARRANTIES AT A TIME WHEN THE CREDIT MARKET HAS BECOME EXTREMELY COMPETITIVE CITIBANK IS ROLLING OUT NUMEROUS ENHANCEMENTS TO HOLD ONTO ITS DOMINANT SHARE OF THE CREDIT CARD MARKET IT SOUNDS EXPENSIVE SAID MICHAEL J AURIEMMA MANAGING DIRECTOR AT AURIEMMA CONSULTING GROUP CREDIT CARD CONSULTANTS MR COHEN SAID WE HOPE IT WILL REDUCE OUR ATTRITION OVER TIME WITH THIS ENHANCEMENT AS WELL AS THE BANK'S RECENT MOVE TO LOWER INTEREST RATES ON ITS CARDS CITIBANK WOULD NOT SPECIFICALLY DISCLOSE ITS ATTRITION RATE BUT A SPOKESWOMAN SAID IT WAS LESS THAN 5 IN 1992 WHILE CHASE MANHATTAN CORP RECENTLY WITHDREW FREE COLLISION INSURANCE ON CAR RENTALS PAID WITH ITS CREDIT CARDS OTHER BANKS ARE OFFERING NEW ENHANCEMENTS TO COMPETE AND A CHASE SPOKESMAN SAID IT WOULD SOON OFFER ANOTHER CARD PRODUCT WITH INNOVATIVE FEATURES THERE'S A FIGHT AMONG ISSUERS TO ADD VALUE TO THEIR CARDS SAID MR AURIEMMA CITIBANK IS TRYING TO SET THEMSELVES APART THOUGH CITIBANK IS CALLING THE PRODUCT CITIBANK LIFETIME WARRANTY AND IS PLANNING A SPLASHY AD CAMPAIGN THE WARRANTY IS ACTUALLY NOT FOR THE LIFE OF THE PRODUCT IT IS FOR WHAT CITIBANK SAYS IS THE EXPECTED SERVICE LIFE OF A GIVEN PRODUCT CITIBANK SAYS THE ESTIMATED LIFE IS MEASURED BY APPLIANCE A MONTHLY MAGAZINE THAT SERVES APPLIANCE PRODUCERS HOWEVER CITIBANK IS NOT ACTUALLY USING THE AVERAGE TABULATED BY THE MAGAZINE BUT THE LOWEST LIFE RECEIVED FOR EACH PRODUCT CATEGORY AMONG THOSE COMPANIES THAT RESPONDED TO THE MAGAZINE'S SURVEY FOR INSTANCE CITIBANK SAYS IT WILL GUARANTEE A STANDARD REFRIGERATOR FOR 10 YEARS BUT THE MAGAZINE'S SURVEY SAYS THE AVERAGE LIFE IS 16 YEARS MR COHEN INITIALLY SAID CITIBANK WAS USING THE AVERAGE EXPECTED LIFE BUT ADMITTED IT WAS NOT USING THE AVERAGE WE HAVE TENDED TO USE THE LOW END MR COHEN SAID WE COULD HAVE BEEN MORE UPFRONT HE SAID CONSUMERS VIEWED THE LONGER WARRANTIES AS LIFETIME IN FOCUS GROUPS AND CONTENDED THE BANK WAS NOT BEING MISLEADING 9306100083 930610 BUSINESS BRIEF WARNERLAMBERT CO PHARMACEUTICAL PLANS TO BUY 94 STAKE IN NEUREX CORP WARNERLAMBERT CO SAID IT WILL INVEST 7 MILLION IN THE PENDING INITIAL PUBLIC OFFERING OF NEUREX CORP MENLO PARK CALIF A DEVELOPER OF TREATMENTS FOR NEUROLOGICAL DISEASES NEUREX IS SEEKING TO RAISE 30 MILLION BY SELLING THREE MILLION SHARES WARNERLAMBERT'S INVESTMENT WOULD GIVE IT A 94 STAKE IN NEUREX THE PHARMACEUTICAL COMPANY BASED IN MORRIS PLAINS NJ AGREED TO PURCHASE 3 MILLION OF SHARES IN NEUREX'S NEXT PUBLIC OFFERING THE TWO COMPANIES ALSO AGREED TO SHARE COSTS AND COLLABORATE IN DEVELOPING NEUROLOGICAL DISEASE TREATMENTS 9306100082 930610 BUSINESS BRIEF ALLWASTE INC ENVIRONMENTAL FIRM EXPECTS PROFIT TO FALL FOR 3RD QUARTER ALLWASTE INC SAID IT EXPECTS TO REPORT EARNINGS FOR THE THIRD QUARTER ENDED MAY 31 OF 21 MILLION TO 26 MILLION OR SIX CENTS TO SEVEN CENTS A SHARE THE HOUSTON ENVIRONMENTAL COMPANY WHICH EARNED 35 MILLION OR 10 CENTS A SHARE FOR THE YEAREARLIER QUARTER ATTRIBUTED THE DECLINE IN PROFIT TO A SLUMP IN THE MARKET FOR INDUSTRIAL CLEANING SERVICES ROUTINE MAINTENANCE WORK AND SEASONAL TURNAROUND PROJECTS CONTINUE TO BE DEFERRED SAID ALLWASTE IN ADDITION COSTS ARE ESCALATING WHILE PROFIT MARGINS CONTINUE TO BE PRESSURED FROM AN EXTREMELY COMPETITIVE MARKET UNCERTAINTY ABOUT THE CURRENT ADMINISTRATION'S ECONOMIC POLICY AND REGULATORY PHILOSOPHY ALSO CONTRIBUTED TO THE DIFFICULT BUSINESS ENVIRONMENT SAID ALLWASTE 9306100081 930610 BUSINESS BRIEF DEAN FOODS CO NEGOTIATIONS ARE UNDER WAY FOR PURCHASE OF FLAVORICH DEAN FOODS CO SAID IT IS IN TALKS TO ACQUIRE FLAVORICH INC A MILK AND ICECREAM BUSINESS FROM DAIRYMEN INC LOUISVILLE KY THE DAIRY CONCERN SAID FLAVORICH OPERATES NINE MILK PLANTS AND TWO ICECREAM PLANTS IN THE SOUTHEASTERN US AND HAD SALES FOR 1992 OF 400 MILLION DEAN FRANKLIN PARK ILL SAID THAT THROUGH THE ACQUISITION IT HOPES TO INCREASE ITS PARTICIPATION IN THE GROWING SOUTHEAST MARKET THE COMPANY NOW HAS ONLY A SMALL PRESENCE IN THE REGION 9306100080 930610 BUSINESS BRIEF HERBALIFE INTERNATIONAL INC MAJOR SHAREHOLDER AGREES TO LIMIT HIS STOCK SALES HERBALIFE INTERNATIONAL INC INGLEWOOD CALIF SAID IT SIGNED AN AGREEMENT WITH LAWRENCE THOMPSON A MAJOR SHAREHOLDER AND RECENTLY RETIRED HERBALIFE EXECUTIVE LIMITING THE SALE OF HIS SHARES HERBALIFE SAID MR THOMPSON AGREED TO LIMIT THE SALE OF HIS STOCK THROUGH THE 1994 FOURTH QUARTER HE IS ENTITLED TO PARTICIPATE IN ANY COMPANYINITIATED PUBLIC OFFERINGS MR THOMPSON 48 YEARS OLD RETIRED AS EXECUTIVE VICE PRESIDENT SALES AND A DIRECTOR THIS YEAR AND HOLDS 25 MILLION HERBALIFE SHARES OR A 9 STAKE HE COULDN'T BE REACHED FOR COMMENT HERBALIFE MARKETS HEALTH AND NUTRITION PRODUCTS ITS STOCK WAS QUOTED AT 1275 DOWN 125 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9306100079 930610 BUSINESS BRIEF CONVERSION INDUSTRIES INC STOCK OPTION PLANS HALTED ON REGULATORY TECHNICALITY CONVERSION INDUSTRIES INC SAID ITS BOARD TERMINATED ITS STOCK OPTION PLANS BECAUSE OF A REGULATORY TECHNICALITY AND ACCELERATED THE VESTING OF ALL OPTIONS PREVIOUSLY GRANTED UNDER THE PLANS MOST OF THE PASEDENA CALIF COMPANY'S ROUGHLY A DOZEN EMPLOYEES PLUS ITS OFFICERS AND DIRECTORS EXERCISED THEIR OPTIONS AT AN AVERAGE PRICE OF ABOUT 815 EACH A SENIOR EXECUTIVE SAID THE EXERCISE RESULTED IN PAPER PROFITS FOR THE GROUP TOTALLING ABOUT 7 MILLION IN AMERICAN STOCK EXCHANGE TRADING YESTERDAY CONVERSION'S SHARES ROSE 3 TO 30 MOST OF THE NEW STOCK REMAINS IN THE HANDS OF THE FORMER OPTION HOLDERS WHO SOLD ONLY ABOUT 52000 OF THEIR NEW SHARES THE COMPANY SAID JOHN P MCGRAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER AND DONALD B CLARK PRESIDENT AND CHIEF OPERATING OFFICER TOGETHER RECEIVED ABOUT 80000 SHARES WHICH THEY STILL HOLD THE EXECUTIVE SPOKESMAN SAID CONVERSION IS AN INVESTMENT CONCERN WITH INTERESTS IN ENERGY AND ENVIRONMENTAL MANAGEMENT CONCERNS 9306100078 930610 BUSINESS BRIEF GTE CORP AT SUBSIDIARY 6200 WORKERS ACCEPT VOLUNTARY SEPARATION GTE CORP STAMFORD CONN SAID ABOUT 6200 EMPLOYEES OF ITS TELEPHONEOPERATIONS SUBSIDIARY OR 77 OF THE UNIT'S US WORK FORCE HAVE ACCEPTED VOLUNTARY SEPARATION OFFERS THE VOLUNTARY SEPARATION PROGRAMS ARE PART OF THE TELECOMMUNICATIONS COMPANY'S CONTINUING EFFORTS TO REDUCE COSTS AND STAY COMPETITIVE A SPOKESMAN FOR GTE TELEPHONE OPERATIONS IN IRVING TEXAS SAID THE PROGRAM'S COST SAVINGS ARE STILL BEING TABULATED AND ADDED THAT GTE HAD NO SET GOAL FOR THE WORKFORCE REDUCTION HE SAID THAT AT THE END OF LAST YEAR GTE HAD 208 ACCESS LINES PER EMPLOYEE COMPARED WITH AN AVERAGE OF 251 ACCESS LINES PER EMPLOYEE FOR THE REGIONAL BELL COMPANIES AT THAT TIME THE NUMBER OF ACCESS LINES PER EMPLOYEE IS CONSIDERED A MEASURE OF EFFICIENCY HE SAID DICK SCHAULIN VICE PRESIDENTHUMAN RESOURCES FOR THE UNIT ALSO WARNED THAT INVOLUNTARY STAFF REDUCTIONS MAY BE REQUIRED AS WE FINALIZE OPERATING AND STRATEGIC PLANS FOR 1994 AND BEYOND 9306100077 930610 S&P LOWERS RATINGS ON BETHLEHEM DEBT TOTALING 750 MILLION BETHLEHEM STEEL CORP'S DEBT WAS DOWNGRADED BY STANDARD & POOR'S CORP A FURTHER INDICATION THAT TRADITIONAL US STEELMAKERS FACE LONGTERM PROBLEMS DESPITE THE INDUSTRY'S NASCENT RECOVERY THE RATING SERVICE LOWERED ITS RATING ON 750 MILLION OF BETHLEHEM DEBT WHICH HAD ALREADY BEEN ASSIGNED A SPECULATIVE GRADE THE STEELMAKER'S SENIOR DEBT WAS REDUCED TO SINGLEBPLUS FROM DOUBLEBMINUS AND ITS PREFERRED STOCK WAS LOWERED TO SINGLEBMINUS FROM SINGLEB WHILE S&P SAID BETHLEHEM'S PERFORMANCE SHOULD IMPROVE OVER THE NEXT FEW YEARS WHILE ITS FINANCES REMAIN ADEQUATE BETHLEHEM FACES AN ACCELERATING ENCROACHMENT BY EFFICIENT STEEL MINIMILLS INTO ITS CORE FLATROLLED STEEL BUSINESS BETHLEHEM SAID IN A STATEMENT THAT IT IS DISAPPOINTED BY THE DOWNGRADE BUT SAID IT AGREED WITH S&P'S BELIEF THAT ITS NEARTERM PERFORMANCE SHOULD IMPROVE BECAUSE OF LOWER COSTS AND A BUSINESS UPTURN BETHLEHEM ISN'T THE ONLY OLDLINE STEELMAKER FACING THE THREAT FROM SMALLER MILLS IN SEVERAL PRODUCTS IN THE LATEST MINIMILL ENCROACHMENT NORTH STAR STEEL SAID ITS PARENT CARGILL INC APPROVED A 100 MILLION MINIMILL IN THE SOUTHWEST THAT WILL MAKE STEEL REINFORCEMENT BARS RODS AND ANGLES THE MILL WILL MAKE HALF A MILLION TONS OF STEEL ANNUALLY AS A RESULT OF SUCH MINIMILL ADVANCES S&P RATING ANALYST SCOTT SPRINZEN SAID THE AGENCY WILL ALSO BE TAKING A CLOSE LOOK AT OTHER STEELMAKERS THE SERVICE LOWERED ITS RATINGS ON ARMCO INC EARLIER THIS YEAR AND HAS ASSIGNED USX CORP'S US STEEL THE ONLY TRADITIONAL STEELMAKER WITH AN INVESTMENTGRADE RATING A NEGATIVE OUTLOOK S&P ALSO HAS WEIRTON STEEL CORP'S RATINGS UNDER REVIEW WE CONTINUE TO HAVE A CONCERN ABOUT LONGTERM PROSPECTS NOTWITHSTANDING EXPECTATIONS FOR BETTER TIMES OVER THE NEXT COUPLE OF YEARS S&P SAID 9306100076 930610 BUSINESS BRIEF COMSAT CORP UNIT ACQUIRES STAKE IN FIRM COVERING EXSOVIET STATES COMSAT CORP WASHINGTON DC SAID ITS INTERNATIONAL SUBSIDIARY ACQUIRED A STAKE IN BELCOM INC A TELECOMMUNICATIONS COMPANY THAT PROVIDES TURNKEY SERVICES TO WESTERN COMPANIES OPERATING IN RUSSIA AND OTHER FORMER SOVIET STATES TERMS WEREN'T DISCLOSED BUT COMSAT INTERNATIONAL VENTURES THE UNIT SAID IT ACQUIRED A NONCONTROLLING POSITION IN BELCOM WITH AN OPTION TO INCREASE ITS STAKE BELCOM WHICH IS CLOSELY HELD HAS INSTALLED AND OPERATED SATELLITEBASED TELECOMMUNICATIONS SYSTEMS IN THE FORMER SOVIET UNION FOR MORE THAN 50 WESTERN COMPANIES DURING THE PAST THREE YEARS CURRENTLY ITS PRIVATE SATELLITEBASED TELECOMMUNICATIONS SERVICE PETRONET PROVIDES MULTIPLE CHANNELS FOR VOICE FAX AND DATA COMMUNICATIONS VIA SATELLITE FOR WESTERN OIL COMPANIES OPERATING IN RUSSIA AND KAZAKHSTAN COMSAT'S INVESTMENT WILL ENABLE BELCOM TO EXPAND THE AVAILABILITY OF TELECOMMUNICATIONS IN THE FORMER SOVIET STATES WHERE LITTLE OR NO USEFUL CAPACITY EXISTS SAID KEN SCHAFFER BELCOM'S PRESIDENT 9306100075 930610 BUSINESS BRIEF PHELPS DODGE CORP FIRM LINES UP 290 MILLIO IN FINANCING FOR CHILE MINE PHELPS DODGE CORP SAID IT HAS COMPLETED A 290 MILLION FINANCING FOR ITS LA CANDELARIA COPPER AND GOLD MINE IN NORTHERN CHILE EXPORTIMPORT BANK OF JAPAN IS PROVIDING 200 MILLION THE OVERSEAS PRIVATE INVESTMENT CORP 50 MILLION BANCO DE CHILE 30 MILLION AND KREDITANSTALT FUR WIEDERAUFBAU 10 MILLION THE REMAINING 270 MILLION OF THE 560 MILLION IN CAPITAL NEEDED FOR THE PROJECT WILL COME FROM THE JOINT VENTURE PARTNERS IN PROPORTION TO THEIR INTERESTS PHELPS DODGE BASED IN PHOENIX ARIZ HOLDS 80 OF THE PROJECT AND SUMITOMO CORP AND SUMITOMO METAL MINING CO HOLD THE OTHER 20 THE PROJECT LOCATED NEAR COPIAPO IS EXPECTED TO PRODUCE ABOUT 80000 OUNCES OF GOLD AND 200 MILLION POUNDS OF COPPER A YEAR THE PARTNERS EXPECT TO BEGIN PRODUCTION THERE IN 1995 9306100074 930610 INTERNATIONAL BRIEF KLOECKNERWERKE AG CREDITORS OF STEELMAKER UNIT BACK DEBTREDUCTION PLANS CREDITORS OF SPECIALTY STEELMAKER KLOECKNER EDELSTAHL GMBH WEDNESDAY GAVE FINAL APPROVAL TO THE DEBTREDUCTION PLANS OF GERMANY'S INSOLVENT KLOECKNERWERKE AG OF WHICH KES IS A UNIT YESTERDAY'S CREDITORS' MEETING WAS THE THIRD IN AS MANY DAYS TO OVERWHELMINGLY PASS THE PROPOSED ERASURE OF SOME 14 BILLION MARKS 8614 MILLION OF THE 27BILLIONMARK DEBT OWED BY THE KLOECKNERWERKE PARENT COMPANY AND ITS KLOECKNER STAHL GMBH AND KES SUBSIDIARIES KLOECKNERWERKE SAID VOTES REPRESENTING 991 OF CLAIMS OUTSTANDING ON KES WERE CAST IN FAVOR OF THE DEBT REDUCTION WELL IN EXCESS OF THE 80 REQUIRED TO SAVE THE GROUP FROM OUTRIGHT BANKRUPTCY FOLLOWING THIS WEEK'S APPROVAL BY THE THREE SETS OF CREDITORS A COUNTY COURT IS EXPECTED TO FORMALLY CONFIRM KLOECKNER'S DEBT RELIEF ON JUNE 15 9306100073 930610 BUSINESS BRIEF NEW ENGLAND ELECTRIC SYSTEM CHARGE OF 14 MILLION IS SET IN 2ND QUARTER FOR CLEANUPS NEW ENGLAND ELECTRIC SYSTEM WESTBOROUGH MASS SAID IT WILL TAKE A CHARGE OF 14 MILLION OR 21 CENTS A SHARE IN ITS SECOND QUARTER RELATED TO POTENTIAL COSTS FOR CLEANUP OR REMEDIATION OF MANUFACTUREDGAS WASTE SITES A YEAR EARLIER NET INCOME WAS 302 MILLION OR 47 CENTS A SHARE ON REVENUE OF 4993 MILLION THE COMPANY SAID THE SECONDQUARTER CHARGE OF 22 MILLION PRETAX ALONG WITH PREVIOUS PRETAX RESERVES OF 18 MILLION ESTABLISHED IN PRIOR PERIODS REFLECT PRELIMINARY ESTIMATES OF REMEDIATION COSTS AT A LYNN MASS SITE AND TWO OTHER SITES AND OF COSTS FOR INVESTIGATION AND MONITORING OF THE OTHER 34 LOCATIONS NEW ENGLAND ELECTRIC SAID THE RESERVE FOR THE 34 LOCATIONS DOESN'T INCLUDE ANY COSTS RELATED TO GROUNDWATER OR SOIL REMEDIATION THAT MAY BE REQUIRED THE ACTUAL LIABILITY THEREFORE COULD BE SUBSTANTIALLY HIGHER THAN THE RESERVE ESTABLISHED 9306100072 930610 INTERNATIONAL BRIEF RACAL ELECTRONICS PLC PRETAX PROFIT ROSE THREEFOLD IN THE YEAR ENDED MARCH 31 RACAL ELECTRONICS PLC SAID PRETAX PROFIT IN THE YEAR ENDED MARCH 31 JUMPED THREEFOLD TO 515 MILLION 783 MILLION FROM 161 MILLION RACAL SAID THE ACCOUNTS EXCLUDE RESULTS FROM CHUBB SECURITY PLC AND VODAFONE GROUP PLC WHICH WERE APPROVED FOR DEMERGER FROM RACAL LAST YEAR RACAL SAID IT EXPECTS A FURTHER IMPROVEMENT IN OPERATING PROFIT IN ITS CURRENT YEAR WITH LOWER EXCEPTIONAL CHARGES OFFSETTING THE LOSS OF INTEREST INCOME SALES EDGED UP TO 9462 MILLION FROM 940 MILLION MORE THAN 70 OF RACAL'S SALES CAME FROM OUTSIDE THE UK THE COMPANY SAID TOTAL EQUIPMENT SALES ON CURRENT ORDER ARE EXPECTED TO EXCEED 215 MILLION THE COMPANY SAID RACAL ADDED THAT IT HAS RECEIVED ORDERS VALUED AT MORE THAN 65 MILLION FOR ITS SCOPE SHIELD II TACTICAL COMMUNICATIONS SYSTEM INCLUDING CONTRACTS THROUGH THE US AIR FORCE 9306100071 930610 INTERNATIONAL BRIEF HAMBROS PLC PERSHARE EARNINGS FELL 18 IN ITS YEAR ENDED MARCH 31 HAMBROS PLC A UK MERCHANT BANKING INSURANCE AND PROPERTY CONCERN REPORTED AN 18 DROP IN ITS PERSHARE EARNINGS FOR THE 199293 FINANCIAL YEAR PERSHARE EARNINGS FELL TO 208 3161 FROM 254 THE COMPANY SAID IT HAS BEGUN TO SEE SIGNS OF ECONOMIC RECOVERY BUT THEY CAME TOO LATE TO BOOST LAST YEAR'S EARNINGS AT TWO OF ITS THREE DIVISIONS PRETAX PROFIT FELL 13 TO 65 MILLION FROM 743 MILLION BANKING MARKETS HAVE BEEN RECOVERING SINCE FALL 1992 AND THE COMPANY SAID IT HAS SEEN MARKED IMPROVEMENT IN THE HOUSING MARKET SINCE JANUARY PRETAX PROFIT IN THE BANKING DIVISION GREW SLIGHTLY IN THE FINANCIAL YEAR ENDED MARCH 31 TO 738 MILLION FROM 734 MILLION LOSSES IN THE RETAIL FINANCE DIVISION WHICH INCLUDES HOUSING FINANCING WIDENED TO 122 MILLION FROM 82 MILLION 9306100070 930610 INTERNATIONAL BRIEF BRITISH PETROLEUM PLC COMPANY SEEKS TO ACQUIRE REST OF FRENCH UNIT'S SHARES BRITISH PETROLEUM PLC SAID IT PLANS TO LAUNCH A BID FOR THE 14 OF ITS MAIN FRENCH UNIT THAT IT DOESN'T ALREADY OWN THE BRITISH OIL GROUP STRESSED THAT FRENCH RULES GOVERNING THE UNIT SOCIETE FRANCAISE DES PETROLES BP PREVENT IT FROM DISCLOSING TERMS FINANCIAL DETAILS OR THE STRATEGIC GOAL OF THE OPERATION THE FRENCH UNIT'S BOARD WILL MEET TOMORROW TO EXAMINE THE PROPOSED OFFER AND A FILING WILL BE MADE FOR THE APPROVAL OF FRENCH STOCK MARKET AUTHORITIES IMMEDIATELY AFTERWARD BP SAID BP FRANCE SHARES WERE SUSPENDED ON THE PARIS BOURSE AT 88 FRANCS 1610 EACH IN CONJUNCTION WITH THE ANNOUNCEMENT DOWN TWO FRANCS THE PRICE SUGGESTS THAT 14 OF BP FRANCE WOULD BE VALUED AT NEARLY 520 MILLION FRANCS 95 MILLION BP FRANCE IS A REFINING PRODUCTION MARKETING AND CHEMICALS CONCERN THAT HAD 1992 PROFIT OF 99 MILLION FRANCS 9306100069 930610 BUSINESS BRIEF MARK IV INDUSTRIES INC MANUFACTURER COMPLETES SALE OF 4 UNITS TO DANAHER CORP MARK IV INDUSTRIES INC SAID IT COMPLETED THE PREVIOUSLY ANNOUNCED SALE OF FOUR OF ITS NONCORE BUSINESSES TO WASHINGTON DCBASED DANAHER CORP FOR 35 MILLION MARK IV SAID THE BUSINESSES SOLD WERE ITS LFE INSTRUMENTS GRAPHIC INSTRUMENTS AND EAGLE INDUSTRIAL PRODUCTS DIVISIONS AS WELL AS MARK IV INSTRUMENTS LTD A BRITISH UNIT THE FOUR UNITS WHICH MAKE MICROPROCESSOR AND COMPUTERBASED INSTRUMENTS AND CONTROLS HAD SALES OF ABOUT 54 MILLION IN THE YEAR ENDED FEB 28 1993 THE COMPANY SAID IT SAID IT EXPECTS TO REPORT NEITHER A GAIN NOR A LOSS ON THE TRANSACTION MARK IV BASED IN AMHERST NY SAID PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES INCLUDING REPAYMENT OF A PORTION OF THE DEBT INCURRED TO FINANCE THE RECENTLY COMPLETED ACQUISITION OF PIRELLI TRASMISSIONI INDUSTRIALI SPA DANAHER CORP MAKES TOOLS PROCESS CONTROLS AND TRANSPORTATION PRODUCTS MARK IV MAKES POWER TRANSFER MASS TRANSIT AND AUDIO EQUIPMENT AND SYSTEMS 9306100068 930610 WORLD MARKETS LONDON STOCK PRICES LIFTED BY TECHNICAL BUYING FRANKFURT SHARES GAIN FOR SIXTH SESSION IN A ROW A WALL STREET JOURNAL NEWS ROUNDUP LONDON STOCKS CLIMBED WEDNESDAY PROPELLED BY TECHNICAL BUYING AND A STRONG OPENING ON WALL STREET FRANKFURT SHARES ROSE FOR THE SIXTH CONSECUTIVE SESSION AS FOREIGN INVESTORS CAUTIOUSLY TURNED THEIR ATTENTION BACK TO GERMAN EQUITIES THE TOKYO MARKET WAS CLOSED WEDNESDAY FOR A HOLIDAY IN OBSERVANCE OF JAPAN'S ROYAL WEDDING ON THURSDAY THE NIKKEI 225STOCK INDEX FELL 16655 POINTS TO CLOSE THE MORNING SESSION AT 2040869 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10749 UP 021 REFLECTING INCREASES IN ASIA/PACIFIC EUROPEAN AND AMERICAN MARKETS CASINO STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 15740 UP 250 OR 16 WITH PROMUS OF THE US POSTING A 7 GAIN IN ITS LOCAL CURRENCY FOREST PRODUCTS STOCKS TRAILED AT 13639 DOWN 298 OR 21 WITH GEORGIAPACIFIC OF THE US SLIDING 35 IN LOCAL CURRENCY IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ADVANCED 225 POINTS TO 28669 NEAR THE SESSION PEAK OF 28682 THE FT 30STOCK INDEX GAINED 160 POINTS TO 22405 VOLUME WAS 6912 MILLION SHARES COMPARED WITH 5514 MILLION SHARES A DAY EARLIER THE RISE RESULTED IN PART FROM PROGRAM TRADING AND BUYING TO COVER SHORT POSITIONS REPLACING SHARES BORROWED IN HOPES OF PROFITING BY BUYING AN EQUAL NUMBER LATER AT A LOWER PRICE TO REPLACE THE BORROWED STOCK BULLISH SENTIMENT ALSO WAS FUELED BY WIDENING EXPECTATIONS OF FURTHER REDUCTIONS OF INTEREST RATES IN BRITAIN AND GERMANY INVESTORS INTERPRETED COMMENTS BY KENNETH CLARKE BRITAIN'S CHANCELLOR OF THE EXCHEQUER AS AN INDICATION THAT HE PREFERS CUTTING GOVERNMENT SPENDING TO RAISING TAXES TO CURB THE BUDGET DEFICIT WHICH WOULD BE POSITIVE FOR THE STOCK MARKET NONETHELESS MR CLARKE DIDN'T MAKE A COMMITMENT TO CUTTING TAXES BUYING OCCURRED ACROSS THE BOARD IN LONDON THE PHARMACEUTICAL SECTOR WAS ONE OF THE FEW TO FALL OUT OF FAVOR BREWERS WERE BOOSTED BY HOT WEATHER IN BRITAIN IN FRANKFURT THE DAX 30STOCK INDEX ROSE 1146 POINTS TO 167307 PUSHING THIS WEEK'S GAIN TO 3522 POINTS THE MARKET GOT A PSYCHOLOGICAL BOOST TUESDAY WHEN THE DAX BROKE THROUGH 166000 AND SOME PARTICIPANTS BELIEVE THE INDEX COULD RIDE UP TO 1700 NEXT WEEK SHARES YESTERDAY WERE LIFTED PARTLY BY A FIRMER DOLLAR IN CURRENCYEXCHANGE MARKETS THE MACHINERY SECTOR ADVANCED ON NEWS THAT RUSSIA WAS SEEKING FINANCING POSSIBILITIES FOR A SECOND NATURALGAS PIPELINE TO GERMANY FOLLOWING A GERMAN HOLIDAY TODAY LIGHT TRADING IS ANTICIPATED TOMORROW AS MANY TRADERS PLANNED TO TAKE AN EXTENDED WEEKEND IN PARIS STOCKS JUMPED SPURRED BY A RALLY IN THE FRENCH BOND MARKET AND BY SOME OPTIMISTIC PROJECTIONS BY FRENCH COMPANIES FOR THIS YEAR'S FINANCIAL RESULTS IN AMSTERDAM SHARES ROSE BROADLY ON A STRONG DOLLAR GAINS ON MOST EUROPEAN BOURSES AND WALL STREET'S BRIGHT OPENING THOUGH MUCH OF THE MODERATE DEMAND WAS GENERATED BY THE OPTIONS MARKET MILAN EQUITIES STAGED A TECHNICAL RECOVERY FOLLOWING RECENT DECLINES AND GAINS WERE RACKED UP STEADILY TO REACH HIGHS TOWARD THE END OF THE SESSION IN MADRID SHARE PRICES REBOUNDED REGAINING SOME OF THE LOSSES IN THE PAST TWO SESSIONS THAT OCCURRED IN REACTION TO SPAIN'S GENERAL ELECTION OUTCOME LAST SUNDAY THOUGH THE DROPS EARLIER THIS WEEK WERE INCREASINGLY PERCEIVED AS AN OVERREACTION TO THE SOCIALISTS' REELECTION THE PARTY DIDN'T WIN A MAJORITY AND INVESTORS WERE SOMEWHAT CAUTIOUS AS THE SOCIALISTS HAVE UNTIL THE END OF THE MONTH TO OUTLINE THE NEW ADMINISTRATION BEFORE PARLIAMENT VOTES ON THE NEW GOVERNMENT STOCKHOLM EQUITIES RECOVERED FROM A MORNING SLUMP TO FINISH LITTLE CHANGED TO HIGHER IN EXTREMELY HEAVY TRADING IN ZURICH STOCKS ROSE ON POSITIVE SWISS INFLATION DATA THAT LIFTED BANKING ISSUES AND ON TECHNICAL FACTORS SUCH AS THE DOLLAR'S CONTINUING FIRMNESS IN SYDNEY SHARE PRICES FELL FOR A THIRD CONSECUTIVE DAY DRAGGED DOWN AGAIN BY GOLD MINING ISSUES HONG KONG STOCKS ROSE ON FOLLOWTHROUGH BUYING AFTER THE PREVIOUS SESSION'S 19 SURGE AND UTILITIES POSTED THE LARGEST ADVANCES SINGAPORE PRICES RETREATED IN A BROAD CONSOLIDATION TAIPEI STOCKS FELL SLIGHTLY FOR THE FOURTH DECLINE IN A ROW ON NEWS THAT TAIWAN'S PARLIAMENT PASSED A BILL REQUIRING GOVERNMENT OFFICIALS AND LEGISLATORS TO DISCLOSE THEIR ASSETS MANILA EQUITIES SLUMPED AS PROFITTAKING CONTINUED SEOUL STOCKS ROSE ON POSITIVE CORPORATE NEWS AMONG CORPORATE DEVELOPMENTS IN LONDON RACAL ELECTRONICS JUMPED 10 PENCE OR 46 TO 227 PENCE 345 IN LINE WITH MARKET EXPECTATIONS PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 MORE THAN TRIPLED TO 515 MILLION 783 MILLION FROM 161 MILLION A YEAR EARLIER THE RESULTS EXCLUDE CHUBB SECURITY AND VODAFONE GROUP WHICH WERE APPROVED FOR SPLITTING OFF FROM RACAL LAST YEAR RACAL SAID IT EXPECTS OPERATING PROFIT FOR THE CURRENT FISCAL YEAR TO IMPROVE WITH LOWER SPECIAL CHARGES OFFSETTING THE LOSS OF INTEREST INCOME BRITISH PETROLEUM ROSE 2 TO 310 THE OIL COMPANY PLANS TO LAUNCH A BID FOR THE 14 OF ITS MAIN FRENCH UNIT SOCIETE FRANCAISE DES PETROLES BP THAT IT DOESN'T ALREADY OWN FRENCH RULES BAR DISCLOSURE OF TERMS AND OTHER DETAILS BUT IN PARIS BP FRANCE SHARES WERE SUSPENDED AT 88 FRENCH FRANCS 1607 GIVING THE 14 STAKE AN INDICATED MARKET VALUE OF ABOUT 520 MILLION FRANCS 95 MILLION IN FRANKFURT DAIMLERBENZ ROSE 1 MARK TO 57950 MARKS 35657 THE INDUSTRIAL COMPANY SAID IT IS INCREASINGLY OPTIMISTIC THAT 1994 SALES WILL RISE BUT IT DIDN'T GIVE A SPECIFIC FORECAST DAIMLER EXPECTS TO POST 1993 SALES OF 96 BILLION MARKS 5907 BILLION DOWN 26 FROM 1992 IN AMSTERDAM AHOLD FINISHED AT 9270 GUILDERS 5085 UP 060 GUILDER THE FOOD RETAILER IN A FINANCIAL REPORT TODAY IS EXPECTED TO POST AN INCREASE OF AS MUCH AS 82 IN FIRSTQUARTER EARNINGS TO BETWEEN 180 AND 185 GUILDERS 99 US CENTS AND 101 A SHARE COMPARED WITH 171 GUILDERS A YEAR EARLIER PARTLY ON FIRMER OPERATING MARGINS BUT THE ESTIMATES DON'T ALLOW FOR THE EFFECT OF AN APRIL RIGHTS ISSUE OF MORE THAN 5 MILLION COMMON SHARES LAST YEAR THE COMPANY EARNED 305 MILLION GUILDERS 1673 MILLION 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 9306100067 930610 AT&T SEEKS TO LIFT CURBS ON TECHNOLOGY EXPORTS WASHINGTON AMERICAN TELEPHONE & TELEGRAPH CO ASKED THE CLINTON ADMINISTRATION TO REMOVE MOST REMAINING COLD WARERA RESTRICTIONS ON EXPORTS OF TELECOMMUNICATIONS GEAR TO CHINA AND THE FORMER SOVIET UNION AT&T SAID IT WOULD LOSE 110 MILLION IN SALES BY THE END OF THE YEAR DUE TO THE EXPORT CONTROLS AND AN ADDITIONAL 50 MILLION TO 100 MILLION IN ANNUAL SALES FOR THE REST OF THE DECADE IF THE RESTRICTIONS AREN'T LIFTED GREG HUGHES PRESIDENT OF AT&T'S TRANSMISSION SYSTEMS UNIT TOLD A HOUSE FOREIGN AFFAIRS SUBCOMMITTEE THAT AT&T FILED A PETITION TUESDAY WITH THE COMMERCE DEPARTMENT ARGUING THAT THESE CONTROLS ARE OUTDATED AND INEFFECTIVE HE SAID THE RESTRICTIONS ALSO PREVENTED AT&T'S COMPETITORS FROM SELLING ADVANCED FIBEROPTICS TRANSMISSION TECHNOLOGY AROUND THE WORLD AT THE SAME TIME AT&T SAID ITS FOREIGN COMPETITORS ARE NOT SUBJECT TO THE EXPORT CONTROLS AND ARE GAINING A HUGE ADVANTAGE IN SALES OF SUCH EQUIPMENT IN A MARKET EXPECTED TO GROW TO MORE THAN 300 MILLION IN CHINA ALONE BY 1996 WORLDWIDE THE MARKET IS PROJECTED TO REACH 5 BILLION BY THE END OF THE DECADE THE COMPANY NOTED 9306100066 930610 LEISURE & ARTS BOOKSHELF A QUIET GENIUS REDISCOVERED BY RICHARD LOCKE ELIZABETH BISHOP IS QUICKLY BECOMING A CLASSIC IN A MOST UNCLASSICAL AGE FOURTEEN YEARS AFTER HER DEATH AT 68 FRACTIOUS POETS CRITICS STUDENTS AND SCHOLARS OF DIVERSE RACES CLASSES GENDERS AGES METHODS TASTES AND TALENTS CONCUR THAT HER DECEPTIVELY MODEST OEUVRE 115 POEMS 8 STORIES 9 ESSAYS SEEMS EVERMORE IMPORTANT PROVOCATIVE ENLIVENING IN JUST FOUR YEARS THERE HAVE BEEN IMPRESSIVE BOOKS ON HER BY DAVID KALSTONE BONNIE COSTELLO AND LORRIE GOLDENSOHN AND NOW BRETT C MILLIER HAS PUBLISHED A MOST WELCOME FULLSCALE LIFE AND WORKS ELIZABETH BISHOP LIFE AND THE MEMORY OF IT THE UNIVERSITY OF CALIFORNIA PRESS 602 PAGES 28 HER EARLY LIFE WAS RIGHT OUT OF DICKENS IN 1916 WHEN SHE WAS FIVE FATHERLESS AND LIVING IN A TINY NOVA SCOTIA VILLAGE MOTHER BECAME PERMANENTLY INSANE AFTER SEVERAL BREAKDOWNS SHE LIVED UNTIL 1934 I'VE NEVER CONCEALED THIS ALTHOUGH I DON'T LIKE TO MAKE TOO MUCH OF IT BUT OF COURSE IT IS AN IMPORTANT FACT TO ME I DIDN'T SEE HER AGAIN ALTHOUGH I THINK I HAVE A PRIZE 'UNHAPPY CHILDHOOD' ALMOST GOOD ENOUGH FOR THE TEXTBOOKSPLEASE DON'T THINK I DOTE ON IT THE TONE OF THIS EVEN THE PUNCTUATION AN IMPORTANT FACT TO ME CONVEYS HOW COMPLEX BISHOP'S RETICENCE CAN BE IT'S PART OF HER INSTINCTIVE MODEST LIFELONG IMPERSONATIONS OF AN ORDINARY WOMAN AS JAMES MERRILL ONCE PUT IT SHE WAS A GENIUS OFTEN IN DISGUISE IN HER POEMS HER SELFREVELATIONS PROCEED AS IF THEY WERE DIGRESSIVE BUT ASTONISHINGLY PRECISE AND POISED DESCRIPTIONS OF LANDSCAPES SEASCAPES ANIMALS ODD CHARACTERS DOMESTIC DETAILS LIKE CHEKHOV OR HEMINGWAY OR A SYMBOLIST OR SURREALIST SHE QUIETLY COMPELS US TO LOOK AT AN APPARENTLY MINOR EVENT OR OBJECT THAT SUDDENLY ACQUIRES INTENSE EMOTIONAL AND INTELLECTUAL POWER LIKE THEIRS HER DESCRIPTIONS IMPLY NARRATIVES WHAT WE ASK WOULD MAKE SOMEONE OBSERVE THINGS WITH SUCH URGENT INTENSITY WHAT PERSONAL LOSS ABANDONMENT OR BONERATTLING SHOCK MUST HAVE HAPPENED TO MAKE THIS BIT OF LANDSCAPE OR THIS PARTICULAR FISH SO VERY IMPORTANT THOUGH HER MOST ANTHOLOGIZED POEM THE FISH ENDS WITH HER TRIUMPHANTLY LETTING THE BIG ONE GO HER KEY WEST NEIGHBOR HEMINGWAY ADMIRED IT HER FRIEND ROBERT LOWELL WAS SO IMPRESSED BY HER POEM THE ARMADILLO THAT HE CARRIED IT IN HIS BILLFOLD FOR SEVERAL MONTHS IT ENABLED HIM TO BREAK A TWOYEAR BLOCK AND EMBARK UPON THE FIRST OF HIS FAMOUS CONFESSIONAL POEMS SKUNK HOUR BISHOP THE NOTORIOUSLY RETICENT WRITER HAD DISCOVERED AN AUTOBIOGRAPHICAL METHOD SUCH CREATIVE INTERACTIONS RECALL THE FRIENDSHIPS OF WORDSWORTH AND COLERIDGE OR ELIOT AND POUND NOT THAT THE LITERARY LIFE WAS EVER COMFORTABLE FOR BISHOP LIKE VIRGINIA WOOLF AND MARIANNE MOORE SHE WAS PRAISED AS AN IMPORTANT WOMAN WRITER SO SHE REFUSED TO BE INCLUDED AS THE ONLY WOMAN IN ANTHOLOGIES FOR SEX APPEAL SHE JOKED OR IN ANTHOLOGIES OF WOMEN POETS BUT THIS WAS ALSO A SIGN OF HER AMBITION SHE WOULD BE JUDGED AS MORE THAN A DOG WALKING ON ITS HIND LEGS HER STRUGGLE TO BECOME A GREAT POET WAS UNCOMMONLY COSTLY IN WAYS MS MILLIER'S BIOGRAPHY NOW MAKES CLEAR SHE WAS RAISED BY RELATIVES IN NOVA SCOTIA AND MASSACHUSETTS AT THE AGE OF SIX IN THE WORCESTER HOUSE OF HER WEALTHY PATERNAL GRANDPARENTS SHE COLLAPSED BRONCHITIS ASTHMA ECZEMA ALLERGIES SYMPTOMS OF ST VITUS'S DANCE SHE COULDN'T WALK WHEN SHE WAS RESCUED AFTER ONE WINTER BY A MATERNAL AUNT AND TAKEN TO LIVE IN A TENEMENT IN IRISHITALIAN REVERE NORTH OF BOSTON SHE SPENT MOST OF HER TIME LYING IN BED WHEEZING AND READING BUT BY 16 WAS ENROLLED IN A BOARDING SCHOOL THEN WENT TO VASSAR WHERE THIS ENORMOUSLY CAGEY GIRL READ GEORGE HERBERT GERARD MANLEY HOPKINS AND MARIANNE MOORE MOORE MET HER IN 1934 AND SOON BECAME A MATERNAL FIGURE JUST AS LOWELL BECAME A FRATERNAL ONE WHEN THEY MET IN 1947 AFTER BISHOP FINALLY PUBLISHED HER FIRST COLLECTION NORTH & SOUTH FOUR MORE BOOKS WERE TO FOLLOW BUT A POEM MIGHT TAKE YEARS TO WRITE HER LATE MASTERPIECE THE MOOSE TOOK MORE THAN 25 GEOGRAPHIC EXTREMES AND TENSIONS MARK HER LIFE AND WORK NOVA SCOTIA VS MASSACHUSETTS NEW YORK VS KEY WEST AND THEN BRAZIL HIPPIE SAN FRANCISCO VS HARVARD WHERE SHE TAUGHT FOR NINE YEARS UNTIL SHE DIED IN 1979 THIS ALL SOUNDS COLORFUL ENOUGH BUT IT LEAVES OUT THE TROUBLE BISHOP'S LIFE WAS DOMINATED BY ASTHMA ALCOHOLISM AND DISCREET LESBIANISM IN BRAZIL SHE HAD 15 YEARS OF HAPPINESS WITH A LOVER AND THE LAST NINE YEARS OF HER LIFE WERE ALSO MARKED BY A STRONG SUSTAINING LOVE AFFAIR BUT HER BIOGRAPHER TELLS US OF OVERDOSES OF DRUGS AND ALCOHOL WAVES OF DEPRESSION WRITER'S BLOCK INJURIES DISEASES BLACKOUTS DESPERATE LATENIGHT PHONE CALLS AND INSANITY AND SUICIDE AMONG LOVERS AND FRIENDS THERE WAS WRECKAGE AND LONELINESS EVERYWHERE WHICH MAKES THE HEROIC OBSERVATION OF HER POEMS AND STORIES OR THE BLITHE SPIRITS OF THE FOLLOWING REMARK ALL THE MORE EXTRAORDINARY I DON'T LIKE HEAVINESS IT SEEMS OFTEN TO AMOUNT TO COMPLETE SELFABSORPTION LIKE MANN & WAGNER I THINK ONE CAN BE CHEERFUL AND PROFOUND OR TO QUOTE THE END OF A POEM ON HER 37TH BIRTHDAY THE BIGHT A DESCRIPTION OF A DREDGE AT WORK IN A SCRUFFY KEY WEST HARBOR CLICK CLICK GOES THE DREDGE/ AND BRINGS UP A DRIPPING JAWFUL OF MARL/ ALL THE UNTIDY ACTIVITY CONTINUES/AWFUL BUT CHEERFUL 9306100065 930610 NEW INDEX FUND SAILS FOR EMERGING MARKETS BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON INVESTING IN DEVELOPINGCOUNTRY STOCK MARKETS IS ABOUT TO GET A BIG BOOST THE INTERNATIONAL FINANCE CORP A WORLD BANK UNIT PLANS TO ANNOUNCE TODAY A NEW INDEX FUND AIMED AT INSTITUTIONS TO INVEST IN 18 EMERGING STOCK MARKETS THE FUNDS COSPONSORS ARE THE IFC AND STATE STREET GLOBAL ADVISORS THE INSTITUTIONAL MONEY MANAGEMENT ARM OF STATE STREET BANK & TRUST CO OF BOSTON IT WILL BE MANAGED BY STATE STREET A UNIT OF STATE STREET BOSTON CORP AND ONE OF THE LARGEST PASSIVE MONEY MANAGERS AND IS OPEN TO INVESTORS WORLDWIDE INVESTORS IN INDEXES SEEK TO MATCH BUT NOT BEAT THE PERFORMANCE OF AN INDIVIDUAL INDEX OR COMPOSITE OF INDEXES IN THIS CASE IT'S THE IFC'S INVESTABLE EMERGING MARKETS INDEX WHICH WAS INTRODUCED IN MARCH IT INCLUDES 650 STOCKS FOREIGNERS CAN BUY IN 18 COUNTRIES ARGENTINA BRAZIL CHILE COLOMBIA MEXICO VENEZUELA SOUTH KOREA PHILIPPINES TAIWAN INDIA INDONESIA MALAYSIA PAKISTAN THAILAND GREECE JORDAN PORTUGAL AND TURKEY NO DOUBT THERE IS STRONG DEMAND FOR THESE KINDS OF PRODUCTS SAID RICHARD WATKINS CHIEF EXECUTIVE OFFICER OF LATINVEST SECURITIES LTD A LONDON FIRM SPECIALIZING IN LATIN AMERICAN FINANCE MOST PEOPLE WANT EXPOSURE TO EMERGING MARKETS AND THEY ARE FINDING IT DIFFICULT TO FIND REAL MANAGEMENT EXPERTISE HE NOTED THAT ROUGHLY 40 OF US INVESTORS' INTERNATIONAL INVESTMENTS ARE PASSIVELY MANAGED THE NEW FUND REQUIRES A 10 MILLION MINIMUM INVESTMENT IT IS A SEMIOPEN FUND NEW INVESTORS CAN ENTER THE FUND AND EXISTING INVESTORS LEAVE AT THE END OF EACH MONTH AT WHICH TIME THE FUND'S NET ASSET VALUE IS DETERMINED IT IS THE FIRST OPENENDED STRATEGY OF ITS KIND SAID K STUART PESKIN THE FUND'S MANAGER AT STATE STREET JEFFREY DAVIS A VICE PRESIDENT AT STATE STREET SAID HE WOULDN'T BE SURPRISED TO SEE A SIMILAR OPENENDED FUND FOR US INDIVIDUAL INVESTORS ESTABLISHED WITHIN SIX MONTHS PENDING FORMAL APPROVAL OF ITS BOARD EXPECTED IN JULY THE IFC PLANS TO INVEST 10 MILLION TO 15 MILLION IN THE FUND MR DAVIS EXPECTS THE FUND TO RAISE ABOUT 100 MILLION WITHIN FIVE MONTHS STEVEN A SCHOENFELD AN INVESTMENT OFFICER AT THE IFC IN WASHINGTON SAID IT WILL GROW AS INSTITUTIONAL INVESTORS ALLOCATE MORE FUNDS TO EMERGING MARKETS THE FUND MARKS THE START OF A NEW PHASE OF IFC EFFORTS TO MOBILIZE FOREIGN PORTFOLIO INVESTMENT TO THE DEVELOPING WORLD SAID MR SCHOENFELD IT IS AN IDEAL INITIALACCESS VEHICLE FOR NEW INVESTORS IN EMERGING MARKETS FOR MOREEXPERIENCED INVESTORS IT CAN SERVE AS AN EFFICIENT CORE' COMPONENT OF A BROADER PORTFOLIO HE PREDICTS THAT MORE THAN 15 BILLION OF EMERGINGMARKET EQUITY INVESTMENT WILL BE PASSIVELY MANAGED BY THE END OF THE DECADE FOREIGN INVESTMENT IN EMERGING STOCK MARKETS HAS SURGED FROM JUST A FEW MILLION DOLLARS A DECADE AGO TO AN ESTIMATED 50 BILLION ACCORDING TO THE IFC LAST YEAR ALONE US INVESTORS PURCHASED A NET 508 BILLION OF EMERGINGMARKET STOCKS UP FROM 22 BILLION IN 1991 ACCORDING TO THE SECURITIES INDUSTRY ASSOCIATION SOME STOCK MARKETS IN DEVELOPING COUNTRIES HAVE SIGNIFICANTLY OUTPERFORMED THEIR BIGGER INDUSTRIALWORLD COUNTERPARTS DURING THE PAST EIGHT YEARS AND INSTITUTIONAL INVESTORS INCREASINGLY RECOGNIZE THEM AS AN INDEPENDENT ASSET CLASS THE NEW FUND WILL BE RELATIVELY INEXPENSIVE THE IFC'S MR SCHOENFELD SAID THAT ESTIMATED ANNUAL EXPENSES WILL BE 05 OF THE FUND'S NET ASSET VALUE HE SAID THAT COMPARES WITH 11 TO 16 FOR ACTIVE MANAGERS WHO ANALYZE AND INVEST IN INDIVIDUAL COMPANIES IN EMERGING MARKETS AND ABOUT 03 FOR MONEY THAT IS PASSIVELY MANAGED IN MAJOR STOCK MARKETS LAST MONTH BARING SECURITIES LTD RAISED 50 MILLION IN THREE WEEKS FOR A CLOSEDEND FUND THAT TRACKS ITS OWN INDEX OF 214 COMPANIES IN 12 EMERGING STOCK MARKETS LIKE THE IFC INVESTABLE INDEX BARING'S INDEX INCLUDES ONLY COMPANIES THAT FOREIGNERS CAN INVEST IN AND THAT TRADE IN SUFFICIENT VOLUME TO ALLOW INVESTORS TO BUY AND SELL SHARES WITH EASE MANY STOCKS IN EMERGING MARKETS AREN'T OPEN TO FOREIGN INVESTORS OR TRADE SO THINLY THAT INVESTING IN THEM IS QUITE RISKY THE FUND THE BARING SECURITIES EMERGING MARKETS INDEX TRACKER FUND LTD IS LISTED ON THE LONDON STOCK EXCHANGE AND BEGINS TRADING TODAY PETER O'NEIL DONNELLON MANAGER OF NEW ISSUES AT BARING IN LONDON SAID THAT MOST OF THE INITIAL INVESTORS WERE SMALLER BRITISH AND EUROPEAN INSTITUTIONS BUT HE POINTED OUT THAT ONCE THE FUND'S SHARES BEGAN TRADING INDIVIDUAL INVESTORS INCLUDING AMERICANS COULD BUY THEM STATE STREET ALSO MANAGES THE BARING FUND AND ADDED THAT IT CURRENTLY MANAGES ABOUT 100 MILLION IN EMERGING MARKETS FOR CLIENTS USING MORGAN STANLEY CAPITAL INTERNATIONAL'S INDEXES AS A BENCHMARK WHILE INDEX INVESTING MIGHT BE A GOOD ENTREE TO EMERGING STOCK MARKETS SOME MONEY MANAGERS WARN AGAINST LONGTERM USE OF THE TECHNIQUE EARLY ON IN THE EMERGENCE OF A STOCK MARKET THERE IS QUITE AN IMPRESSION THAT ALL STOCKS MOVE TOGETHER THE MOST IMPORTANT DECISION IS MAKING THE CORRECT BET ON THE MARKET ON A TOPDOWN BASIS SAID ALEX DUNDAS A DIRECTOR AT GT MANAGEMENT PLC IN LONDON BUT LATER ON IN THE EVOLUTION OF A STOCK MARKET STOCKSPECIFIC BETS ARE A BETTER AND BETTER IDEA 9306100064 930610 BUSINESS BRIEF FREEPORTMCMORAN INC A CHARGE FOR RESTRUCTURING EXPECTED FOR SECOND QUARTER FREEPORTMCMORAN INC SAID IT EXPECTS TO REPORT A SECONDQUARTER CHARGE OF 70 MILLION TO 80 MILLION PRIMARILY RELATED TO RESTRUCTURING COSTS IN THE YEARAGO QUARTER FREEPORTMCMORAN EARNED 287 MILLION OR 16 CENTS A SHARE ON 5115 MILLION IN REVENUE THE RESTRUCTURING CHARGE STEMS FROM THE NEW ORLEANS NATURAL GAS CONCERN'S MOVE TO FORM A PHOSPHATE FERTILIZER JOINT VENTURE BETWEEN THE COMPANY'S 51OWNED FREEPORTMCMORAN RESOURCE PARTNERS LP AND IMC FERTILIZER INC THE RESTRUCTURING WILL LEAD FREEPORTMCMORAN RESOURCE PARTNERS TO REPORT A SECONDQUARTER CHARGE OF 40 MILLION TO 50 MILLION IN THE YEARAGO PERIOD THE COMPANY EARNED 177 MILLION OR 17 CENTS A SHARE ON 2445 MILLION IN REVENUE THE RESTRUCTURING WILL ALSO LEAD FREEPORTMCMORAN'S AFFILIATE FREEPORTMCMORAN COPPER & GOLD INC TO REPORT A SECONDQUARTER CHARGE OF 25 MILLION IN THE YEARAGO QUARTER FREEPORTMCMORAN COPPER EARNED 497 MILLION OR 27 CENTS A SHARE ON 2417 MILLION IN REVENUE 9306100062 930610 INTERNATIONAL BRIEF FERRUZZI FINANZIARIA SPA ITALIAN COMPANY DISCLOSES NET DEBT OF 1024 BILLION FERRUZZI FINANZIARIA SPA AN ITALIAN AGROINDUSTRIAL CONGLOMERATE DISCLOSED DETAILS ABOUT ITS DEBT AFTER BEING ORDERED BY MILAN STOCK EXCHANGE AUTHORITIES TO PROVIDE MORE INFORMATION ABOUT ITS FINANCIAL STANDING FERRUZZI SAID NET FINANCIAL DEBT STOOD AT 15123 TRILLION LIRE 1024 BILLION AT YEAR END A FIGURE CALCULATED FROM GROSS CONSOLIDATED FINANCIAL DEBTS OF ABOUT 25246 TRILLION LIRE AND GROSS CONSOLIDATED ASSETS OF ABOUT 10223 TRILLION LIRE OF THE DEBT 10411 TRILLION LIRE IS OWED TO BANKS WHILE THE COMPANY HAS 9805 TRILLION LIRE IN LONGTERM DEBT TO CREDIT INSTITUTIONS FERRUZZI SAID FERRUZZI AND SUBSIDIARIES INCLUDING AGROINDUSTRIAL AND CHEMICAL MAKER MONTEDISON SPA HAVE SEEN THEIR SHARES BATTERED ON THE MILAN EXCHANGE IN RECENT SESSIONS ON NEWS OF THE HUGE DEBTS YESTERDAY FERRUZZI SHARES FELL 47 LIRE TO 829 LIRE WHILE MONTEDISON FELL 77 LIRE TO 1027 LIRE A GROUP OF CREDITOR BANKS IS TRYING TO PUT TOGETHER A RESCUE PACKAGE INVOLVING A RESTRUCTURING 9306100061 930610 INTERNATIONAL SAMSUNG TO MERGE OR SELL 14 SUBSIDIARIES IN STREAMLINING PLAN SEOUL SOUTH KOREA'S SECONDLARGEST BUSINESS GROUP SAMSUNG GROUP ANNOUNCED A PACKAGE OF MERGERS SEPARATION AND STOCK SALE FOR ITS SUBSIDIARIES IN WHAT IT CLAIMS WILL BUILD A NEW CORPORATE CULTURE UNDER THE PLAN SAMSUNG WILL SELL 10 SUBSIDIARIES AND MERGE FOUR OTHERS INTO THE GROUP'S OTHER COMPANIES REDUCING THE NUMBER OF THE GROUP'S SUBSIDIARIES TO 34 FROM 48 IT WILL SEVER ITS SUBSIDIARY RELATIONS WITH 10 COMPANIES INCLUDING CHEIL FOODS & CHEMICALS CO SAMSUNG WATCH CO CHEIL REFRIGERATING CO AND SAMSUNG UNITED AEROSPACE CO THE COMBINED 1992 SALES OF THE COMPANIES TO BE SOLD OFF ARE ESTIMATED AT 217 TRILLION WON 27 BILLION OR 13 OF THE GROUP'S TOTAL MANUFACTURING SALES WITH THE SELLOFF THE EMPLOYMENT PAYROLLS WILL BE CUT BY 12900 FROM 180000 FOUR OF THE GROUP'S COMPANIES WILL MERGE INTO OTHER SUBSIDIARIES CHEIL INDUSTRIES CO INTO SAMSUNG CO SAMSUNG CLARK CO INTO SAMSUNG HEAVY INDUSTRIES CO KWANGJU ELECTRONICS INTO SAMSUNG ELECTRONICS AND DONGBANG BUILDING MAINTENANCE CO INTO SAMSUNG LIFE INSURANCE CO THE GROUP EXPECTS THE STREAMLINING PROCESS TO TAKE 1 1/2 YEARS TO COMPLETE ANNOUNCING THE GROUP'S RESTRUCTURING PLAN A SAMSUNG SPOKESMAN SAID THE ACTION WAS MADE IN LINE WITH THE GROUP'S LONGTERM POLICY OF FOCUSING ON ITS THREE CORE BUSINESSES ELECTRONICS HEAVY INDUSTRIES AND PETROCHEMICALS HE SAID THE GROUP WILL CONSIDER ADDITIONAL MERGERS AMONG ITS SUBSIDIARIES 9306100060 930610 COMMODITIES ANALYSTS' ESTIMATES FOR CORN HARVEST TUMBLE AS PLANTING EFFORTS ARE MIRED BY WET WEATHER BY SCOTT KILMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO GRAIN ANALYSTS ARE SHRINKING THEIR FORECASTS OF THE US CORN HARVEST BECAUSE UNUSUALLY RAINY WEATHER PREVENTED MIDWEST FARMERS FROM PLANTING MILLIONS OF ACRES JOE VICTOR DIRECTOR OF MARKETING AT ALLENDALE INC CRYSTAL LAKE ILL SAID HIS FIRM IS FORECASTING AN 83 BILLION BUSHEL CORN HARVEST COMPARED WITH THE 85 BILLION BUSHEL CROP SIGNALED BY THE US AGRICULTURE DEPARTMENT LAST MONTH FARMERS IN THE 17 MAJOR CORNPRODUCING STATES HAD MANAGED TO PLANT 93 OF THE CROP BY SUNDAY BUT SEVERE RAINSTORMS ACROSS MUCH OF THE MIDWEST SO FAR THIS WEEK ARE KEEPING MANY FIELDS TOO MUDDY TO SUPPORT PLANTING EQUIPMENT AFTER THIS WEEK MOST FARMERS WILL RUN OUT OF TIME TO PLANT CORN THAT CAN MATURE BEFORE THE FIRST KILLING FROST OF AUTUMN THE AGRICULTURE DEPARTMENT WON'T REPORT PLANTED CORN ACREAGE UNTIL JUNE 30 BUT SEVERAL ANALYSTS SAY IT IS LIKELY THAT CORN FARMERS WEREN'T ABLE TO PLANT BETWEEN TWO MILLION ACRES AND THREE MILLION ACRES STEVEN BRUCE A FLOOR MANAGER AT THE CHICAGO BOARD OF TRADE FOR GELDERMANN INC SAID SOME TRADERS HAVE DROPPED THEIR CORN HARVEST FORECASTS TO AS LOW AS 81 BILLION BUSHELS THAT WOULD REPRESENT A 15 DROP FROM LAST YEAR'S RECORD CORN HARVEST OF 948 BILLION BUSHELS PRICES OF CORN FUTURES CONTRACTS HAVE SO FAR SHRUGGED OFF THE SHRINKING ESTIMATES IN PART BECAUSE FOREIGN DEMAND IS RELATIVELY WEAK US GRAIN PRICES ALSO HAVE BEEN DEPRESSED BY UNCERTAINTY OVER WHETHER THE CLINTON ADMINISTRATION WILL EXPAND A GRAIN EXPORT SUBSIDY PROGRAM IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR JULY DELIVERY SLIPPED ONE CENT A BUSHEL TO SETTLE AT 21925 A BUSHEL WHEAT HARVEST IS UNDER WAY PRICES OF WHEAT FUTURES CONTRACTS SETTLED MIXED AS TRADERS MOVED TO THE SIDELINES IN ANTICIPATION OF A GOVERNMENT CROP PRODUCTION REPORT WHICH IS TO BE RELEASED AFTER THE CLOSE OF TRADING TODAY TRADERS GENERALLY EXPECT THE AGRICULTURE DEPARTMENT TO RAISE SLIGHTLY ITS MONTHOLD ESTIMATE OF THE US WINTER WHEAT CROP TO REFLECT RELATIVELY GOOD GROWING CONDITIONS IN TEXAS AND OKLAHOMA WHERE THE HARVEST IS UNDER WAY THE CONSENSUS AMONG TRADERS IS THE DEPARTMENT PROBABLY WILL INCREASE ITS WINTER WHEAT ESTIMATE TO ABOUT 1845 BILLION BUSHELS FROM ITS MAY ESTIMATE OF 1808 BILLION BUSHELS WINTER WHEAT IS PLANTED IN THE FALL AND HARVESTED IN THE EARLY SUMMER THE AGRICULTURE DEPARTMENT ALSO IS SCHEDULED TO UPDATE SOME OF ITS SUPPLY AND DEMAND ESTIMATES FOR MAJOR CROPS ALTHOUGH IT ISN'T EXPECTED TO ADDRESS THE US CORN HARVEST OUTLOOK SOME TRADERS EXPECT THE DEPARTMENT TO SLIGHTLY LOWER ITS ESTIMATE OF THE RECENTLY COMPLETED SOYBEAN HARVEST IN SOUTH AMERICA WHICH IS A MAJOR COMPETITOR OF US EXPORTERS AT THE SAME TIME US SOYBEAN EXPORTS TO MEXICO ARE EXPECTED TO BE REVISED UPWARD IN OTHER COMMODITY MARKETS YESTERDAY PRECIOUS METALS FUTURES PRICES CLOSED MIXED IN LIGHT TRADING DEALERS SAID THE MARKET APPEARED TO BE TREADING WATER WAITING FOR TOMORROW'S RELEASE BY THE GOVERNMENT OF THE PRODUCER PRICE INDEX GOLD FOR AUGUST DELIVERY CONTINUED TO DRIFT LOWER IT SETTLED AT 373 AN OUNCE OFF 260 ON NEW YORK'S COMMODITY EXCHANGE SILVER FOR JULY DELIVERY ALSO RETREATED DROPPING 53 CENTS TO CLOSE AT 4345 AN OUNCE ON THE COMEX AT THE NEW YORK MERCANTILE EXCHANGE PLATINUM FOR JULY DELIVERY CLIMBED 2 TO SETTLE AT 38870 WHILE PALLADIUM FOR SEPTEMBER DELIVERY EDGED UP 50 CENTS TO 12450 SUGAR FUTURES PRICES DROPPED THE ACTIVE JULY CONTRACT FELL 022 CENT TO 1091 CENTS A POUND REVERSING TUESDAY'S 018 CENT GAIN AT THE COFFEE SUGAR & COCOA EXCHANGE IN NEW YORK UNCERTAINTY ABOUT WHETHER THE EXCHANGE WILL ALLOW DELIVERY OF LOWERGRADE CRYSTALLINE SUGAR FROM BRAZIL AGAINST FUTURES CONTRACTS IS CAUSING CHOPPY TRADING CONDITIONS SAID JUDY GANES A SENIOR ANALYST WITH MERRILL LYNCH & CO IN NEW YORK AN EXCHANGE SPOKESWOMAN DECLINED TO COMMENT ON WHETHER THE BRAZILIAN SUGAR WOULD BE PERMITTED TO BE DELIVERED SAYING ONLY IF IT MEETS THE STANDARD OF THE CONTRACT THEN IT IS DELIVERABLE THE SPOKESWOMAN ALSO DECLINED TO COMMENT ABOUT THE OUTCOME OF A SPECIAL MEETING TUESDAY OF THE EXCHANGE'S SUGAR COMMITTEE WHICH DISCUSSED THE BRAZILIAN SUGAR CONTROVERSY 9306100059 930610 TECHNOLOGY INVESTORS HAMMER IMMUNE RESPONSE AFTER UPDATE ON TESTING OF AIDS DRUG BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN IMMUNE RESPONSE CORP AND ITS FOUNDER POLIO PIONEER JONAS SALK PRESENTED A HOPEFUL UPDATE ON A DRUG THAT IS SUPPOSED TO BOOST THE IMMUNE SYSTEMS OF AIDS PATIENTS BUT INVESTORS REACTED SKEPTICALLY HAMMERING THE COMPANY'S STOCK THE REPORT AT THE NINTH INTERNATIONAL CONFERENCE ON AIDS HERE LEFT SCIENTISTS AND STOCK ANALYSTS UNSURE IF THE TEST RESULTS HAVE SCIENTIFIC OR COMMERCIAL IMPORTANCE IMMUNE RESPONSE'S STOCK PLUNGED 5625 OR 26 IN NATIONAL OVERTHECOUNTER TRADING TO CLOSE AT 16 YESTERDAY THE RIDE FOLLOWED A GIDDY WEEK OF ACTIVE TRADING IN ANTICIPATION OF MARKETMAKING NEWS HERE THE STOCK CLIMBED 50 FROM MAY 21 TO 2725 ON JUNE 1 AND HAS SWOONED SINCE THEN IMMUNE RESPONSE TESTED THE DRUG IN PEOPLE INFECTED WITH THE AIDS VIRUS TO SEE IF THE DRUG CAN SLOW OR HALT THE PROGRESS OF AIDS AFTER TREATMENT THE PATIENTS WHO HAD EARLY SYMPTOMS RANGING FROM SWOLLEN GLANDS TO EARLY AIDSRELATED COMPLEX SHOWED A RISE IN CERTAIN IMMUNE CELLS ANTIBODIES AGAINST HIV ROSE AND LEVELS OF VIRUS IN THE BLOOD STABILIZED UNLIKE IN THE UNTREATED CONTROL GROUP BUT THERE WAS NEITHER CURE NOR ANY OUTWARD IMPROVEMENT IN THEIR HEALTH PATIENTS WERE OBSERVED FOR ONE TO FIVE YEARS IT IS SAFE IT ENHANCES IMMUNE RESPONSE BUT IT IS FAR TOO SHORT A TIME TO SAY WHETHER THESE INDIVIDUALS WILL BE WELL CONCLUDED DR ALEXANDRA LEVINE A PROFESSOR AT THE UNIVERSITY OF SOUTHERN CALIFORNIA MEDICAL SCHOOL WHO CONDUCTED THE RESEARCH IN COLLABORATION WITH THE COMPANY LET'S NOT EXPLODE THIS INTO WE HAVE THE ANSWER' SAID THE TOP FEDERAL AIDS OFFICIAL ANTHONY S FAUCI DIRECTOR OF THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES WHILE HE SAID THE DRUG'S EARLY TREND WAS PROMISING HE CALLED THE IMMUNE ENHANCEMENTS SO FAR NOT OVERLY IMPRESSIVE AND QUITE SMALL YOU CANNOT MAKE ANY CONCLUSION THAT THIS IS CLINICALLY USEFUL DR FAUCI ADDED BUT THE WHITEMANED DR SALK SAID WE NOW KNOW THE IMMUNE SYSTEM CAN BE MANIPULATED THE NOBEL PRIZE WINNER WHO CREATED THE FIRST POLIO VACCINE AND IS CREDITED WITH HALTING THAT EPIDEMIC TURNED TO AIDS IN 1986 AND HAS FOUGHT A LONELY BATTLE FOR SEVEN YEARS TO VINDICATE HIS UNUSUAL APPROACH IMMUNE RESPONSE'S PRODUCT SOMETIMES CALLED A THERAPEUTIC VACCINE TAKES THE WHOLE AIDS VIRUS KILLS IT WITH A CHEMICAL AND RADIATION AND PEELS OFF ITS OUTER PROTEIN COAT MOST OTHER VACCINE MODELS USE ONLY A FRAGMENT OR GENESPLICED COPY OF THAT VIRUS COAT BUT SAFETY CONCERNS ABOUT INJECTING WHOLE AIDS VIRUS INTO UNINFECTED PEOPLE HAVE BARRED THIS PRODUCT FROM BEING TESTED AS A PREVENTATIVE VACCINE EXCEPT FOR A SORE ARM OR A BRIEF FEVER THE PATIENTS DIDN'T SUFFER ANY UNEXPECTED SIDE EFFECTS OR A WORSENING OF THEIR ILLNESS DR LEVINE SAID IMMUNE RESPONSE CARLSBAD CALIF HAS TEAMED UP WITH RHONEPOULENC RORER INC COLLEGEVILLE PA TO FORM A JOINT VENTURE IMMUNIZATION PRODUCTS LTD WHICH PLANS TO SEEK FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET THE PRODUCT RHONEPOULENC RORER IS A UNIT OF RHONEPOULENC SA EVEN THOUGH THE COMPANY ACKNOWLEDGED ITS PRODUCT ISN'T READY FOR MARKET IMMUNE RESPONSE OFFICIALS YESTERDAY ADJOURNED THEIR SCIENTIFIC SESSION AND DASHED TO A NEARBY HOTEL FOR A CONFERENCE CALL WITH SECURITIES ANALYSTS SOME ANALYSTS THEMSELVES ARMED WITH CELLULAR PHONES CAME TO BERLIN THERE IS A LOGIC TO THE MAGIC SAID DR SALK WHO IS A SPELLBINDING SPEAKER IN A REFERENCE TO THE COMPLEX WORKINGS OF THE IMMUNEDEFENSE SYSTEM DRS LEVINE AND SALK CONTENDED THE TRENDS SHOWN BY THEIR TESTS ARE MOVING IN THE RIGHT DIRECTION AND VOWED TO CONTINUE THEIR RESEARCH STILL DR SALK CONCEDED THE TESTS DON'T YET TRANSLATE INTO PRACTICAL ADVICE FOR DOCTORS OR PATIENTS THERE ISN'T ANYTHING TO BE DONE RIGHT NOW HE SAID THIS IS MORE A FIRST WHIFF OF SPRING 9306100058 930610 TECHNOLOGY BRIEF BRITAIN UPHOLDS ITS BAN ON UPJOHN'S HALCION DRUG KALAMAZOO MICH UPJOHN CO SAID THE BRITISH GOVERNMENT UPHELD A 1991 BAN ON THE SALE OF THE COMPANY'S HALCION SLEEPING PILLS AND REVOKED THE DRUG'S LICENSE UPJOHN SAID IT WAS OUTRAGED AT THE DECISION AND IS CONSIDERING ITS OPTIONS WHICH MAY INCLUDE APPEALING TO THE BRITISH COURTS HALCION HASN'T BEEN SOLD IN BRITAIN SINCE OCTOBER 1991 WHEN THE LICENSING AUTHORITY BANNED SALES OF HALCION BECAUSE OF REPORTS THAT USERS OF THE SLEEP MEDICATION EXPERIENCE A HIGH INCIDENCE OF NEGATIVE SIDE EFFECTS UPJOHN MAINTAINS THAT HALCION IS SAFE AND EFFECTIVE WHEN USED AS RECOMMENDED AND THAT FEARS OF THE DRUG ARE UNFOUNDED 9306100057 930610 TECHNOLOGY BRIEF COMPAQ COMPUTER CORP MOBILE PC PLANNED FOR 1994 USES MICROSOFT'S SOFTWARE COMPAQ COMPUTER CORP SAID IT PLANS NEXT YEAR TO INTRODUCE A PENBASED MOBILE COMPUTER THAT WILL ENABLE USERS TO MAKE A REMOTE HOOKUP INTO THEIR OFFICE PERSONAL COMPUTER THE HOUSTON PC MAKER SAID THE MACHINE TO BE RELEASED IN THE FIRST HALF OF 1994 WILL WEIGH BETWEEN ONE AND TWO POUNDS AND WILL COST BETWEEN 1000 AND 2000 THE PRODUCT WHICH WILL COMPETE AGAINST SIMILAR MOBILE MACHINES FROM APPLE COMPUTER INC AND TANDY CORP IS THE RESULT OF A WIDERANGING TECHNOLOGY ALLIANCE BETWEEN COMPAQ AND SOFTWARE GIANT MICROSOFT CORP THE TWO COMPANIES IN APRIL PLEDGED TO WORK TOGETHER ON DEVELOPING NEW MOBILE AND PENBASED PERSONAL COMPUTERS THE PC WILL INCORPORATE THE MICROSOFT AT WORK SOFTWARE INTRODUCED YESTERDAY ON THE BIG BOARD COMPAQ SHARES FELL 4375 TO 5375 THE WALL STREET JOURNAL REPORTED YESTERDAY THAT SEVEN COMPAQ EXECUTIVES HAVE SOLD NEARLY 26 MILLION IN COMPAQ SHARES RECENTLY 9306100056 930610 INTERNATIONAL HONG KONG FIRM GETS TAKEOVER BID OF 114 BILLION BY CRAIG S SMITH AND ERIK GUYOT STAFF REPORTERS OF THE WALL STREET JOURNAL HONG KONG CITIC PACIFIC LTD AND CHEUNG KONG HOLDINGS LTD JOINTLY OFFERED 8789 BILLION HONG KONG DOLLARS US114 BILLION FOR MIRAMAR HOTEL & INVESTMENT CO THE BIGGEST TAKEOVER BID IN HONG KONG IN TWO YEARS THE BID REPRESENTS A FURTHER VOTE OF CONFIDENCE BY CHINA IN THE COLONY'S PROPERTY MARKET CITIC PACIFIC IS CONTROLLED BY BEIJING'S CHINA INTERNATIONAL TRUST & INVESTMENT CORP CITIC WHICH ONCE AVOIDED PROPERTY INVESTMENTS RECENTLY JOINED WITH SWIRE PACIFIC TO BUY A COMMERCIAL SITE FOR HK285 BILLION AND LAST MONTH CHINA RESOURCES ENTERPRISES A PUBLICLY TRADED COMPANY CONTROLLED BY THE MAINLAND GIANT CHINA RESOURCES JOINED WITH CHEUNG KONG AND SUN HUNG KAI PROPERTIES LTD IN A HK35 BILLION PROPERTY DEAL THE DEAL ALSO UNDERSCORES THE POSITION OF LI KASHING CHAIRMAN OF CHEUNG KONG AS A LEADING DEALMAKER IN THE TERRITORY FOLLOWING TALK THAT HE HAD LOST HIS TOUCH RECENTLY MR LI HAS TAKEN SMALLER STAKES IN LESS SIGNIFICANT PROJECTS CITIC AND CHEUNG KONG SAID THEY WOULD PAY HK1550 A SHARE FOR ALL OF MIRAMAR'S 5543 MILLION SHARES OUTSTANDING AND HK850 FOR EACH OF THE COMPANY'S 231 MILLION OUTSTANDING WARRANTS THE PRICE OFFERED REPRESENTS A 47 PREMIUM OVER THE HK1480 A SHARE CLOSING PRICE TUESDAY TRADING IN MIRAMAR'S STOCK WAS SUSPENDED ON WEDNESDAY PENDING THE ANNOUNCEMENT OF THE TAKEOVER BID THE PRICE OFFERED FOR THE WARRANTS IS A 12 DISCOUNT TO THEIR CLOSING PRICE ON TUESDAY MIRAMAR SHARES HAVE RALLIED IN RECENT WEEKS ON TAKEOVER RUMORS THE STOCK WAS TRADING AT AROUND HK650 LAST DECEMBER AND AT ABOUT HK10 IN EARLY APRIL THE PRICE HIT HK1530 JUNE 4 MIRAMAR'S ASSETS INCLUDE THE COMPANY'S FLAGSHIP 500ROOM MIRAMAR HOTEL AND THE ADJACENT PARK LANE SQUARE PARK LANE CONSISTS OF TWO TOWERS ONE OF WHICH IS STILL UNDER CONSTRUCTION THE COMPANY ALSO OWNS INTERESTS IN NINE RESTAURANTS IN HONG KONG AND A 25 STAKE IN THE 500ROOM NAN HAI HOTEL IN CHINA'S SHEKOU SPECIAL ECONOMIC ZONE THE TAKEOVER OFFER IS THE BIGGEST DEAL HONG KONG HAS SEEN SINCE CITIC CHEUNG KONG AND OTHERS JOINED FORCES TWO YEARS AGO TO BUY CLOSELY HELD HANG CHONG INVESTMENT LTD FOR ABOUT HK7 BILLION 9306100055 930610 BUSINESS BRIEF COMMONWEALTH EDISON CO RADIOACTIVE STEAM BURNS 5 IN NUCLEAR PLANT PIPE BREAK FIVE COMMONWEALTH EDISON CO EMPLOYEES WERE BURNED BY RADIOACTIVE STEAM WHEN A STEAM PIPE RUPTURED AT THE QUADCITIES NUCLEAR PLANT NEAR CORDOVA ILL THE UTILITY SAID THE WORKERS WERE HIT WITH THE RADIOACTIVE STEAM WHEN A VALVE USED TO CONTROL STEAM PRESSURE IN A PIPE OPENED DURING A ROUTINE TEST THIS RUPTURE DISK IS DESIGNED TO GIVE WAY UNDER HIGH PRESSURE TO PREVENT A PIPE BREAK THE INCIDENT OCCURRED IN THE UNIT ONE REACTOR BUILDING BUT WAS WELL AWAY FROM THE REACTOR AND HAD NO EFFECT ON THE FACILITY'S OPERATION THE COMPANY SAID COMMONWEALTH SAID THE WORKERS WERE SLIGHTLY CONTAMINATED FOUR WERE TREATED AND RELEASED THE FIFTH WAS HOSPITALIZED WITH FIRSTDEGREE AND SECONDDEGREE BURNS THE COMPANY SAID THERE WILL BE AN INVESTIGATION OF THE DISK FAILURE A SPOKESMAN FOR THE UTILITY SAID THE WORKERS WERE EXPOSED TO LESS THAN ONE MILLIREM OF RADIOACTIVITY FEDERAL EXPOSURE LIMITS ARE 7500 MILLIREMS EVERY THREE MONTHS 9306100054 930610 INTERNATIONAL BRIEF QANTAS AIRWAYS LTD CARRIER PLANS TO ADD FLIGHTS TO CIRCUMVENT US ORDER AUSTRALIA'S QANTAS AIRWAYS LTD PLANS TO ADD THREE FLIGHTS A WEEK TO ITS SYDNEYSAN FRANCISCO ROUTE TO CIRCUMVENT AN ORDER BY THE US TO CEASE THREE OF ITS 10 NONSTOP FLIGHTS TO LOS ANGELES QANTAS SAID IT WILL ARRANGE FOR FREE CONNECTING FLIGHTS FROM SAN FRANCISCO FOR THOSE PASSENGERS BOOKED TO LOS ANGELES THE AUSTRALIAN AIRLINE CURRENTLY OFFERS THREE FLIGHTS A WEEK TO SAN FRANCISCO VIA EITHER TAHITI HAWAII OR FIJI THE THREE NEW FLIGHTS WILL BE NONSTOP SERVICES FROM SYDNEY AND WILL MAINTAIN THE CARRIER'S NUMBER OF NONSTOP SERVICES BETWEEN AUSTRALIA AND THE US AT 10 THE US DEPARTMENT OF TRANSPORTATION EARLIER THIS MONTH CANCELED THREE OF QANTAS'S SYDNEYLOS ANGELES SERVICES FROM JULY 1 IN RETALIATION FOR AN AUSTRALIA GOVERNMENT DECISION TO CUT ONE NORTHWEST AIRLINES FLIGHT FROM NEW YORK TO SYDNEY VIA OSAKA JAPAN AUSTRALIA SAID THE US CARRIER WAS PICKING UP TOO MANY PASSENGERS IN JAPAN 9306100053 930610 FORSAKING BOSNIA CLINTON SIGNALS US RETREAT BY JOSHUA MURAVCHIK THE FLAP OVER THE MAY 25 PRESS BRIEFING BY UNDERSECRETARY OF STATE PETER TARNOFF FADED QUICKLY DROWNED OUT BY THE CONTROVERSY OVER ANOTHER CLINTON APPOINTEE LANI GUINIER THE WHITE HOUSE HASTENED TO DISAVOW MR TARNOFF'S ISOLATIONIST VIEWS THIS OFFICIAL CLEARLY DOES NOT SPEAK FOR THE ADMINISTRATION SAID SPOKESWOMAN DEE DEE MYERS AND CONSERVATIVE CRITICS OF MR CLINTON MADE LITTLE EFFORT TO KEEP THE TARNOFF POT BOILING APPARENTLY BECAUSE MANY FIND HIS BRAND OF ISOLATIONISM NOT THAT DIFFERENT FROM WHAT THEY REGARD AS REALISM IN TRUTH THERE IS REASON TO BELIEVE THAT MR TARNOFF CAPTURED WITH UNUSUAL BLUNTNESS THE ESSENCE OF THE ADMINISTRATION'S FOREIGN POLICY AND REASON TO BELIEVE AS WELL THAT HE GRASPS BETTER THAN HIS CONSERVATIVE SYMPATHIZERS WHERE THIS WILL LEAD MR TARNOFF EXPLAINED THAT US INACTION ON BOSNIA EXEMPLIFIED NOT A POLICY FAILURE BUT RATHER A CALCULATED RETREAT FROM GLOBAL RESPONSIBILITIES WE SIMPLY DON'T HAVE THE LEVERAGE HE SAID WE DON'T HAVE THE INFLUENCE WE DON'T HAVE THE INCLINATION TO USE MILITARY FORCES WE CERTAINLY DON'T HAVE THE MONEY TO RESPOND TO THE KINDS OF CRISES THAT WILL CHARACTERIZE THE POSTCOLD WAR ERA DISAVOWALS ASIDE MR TARNOFF IS THE STATE DEPARTMENT'S THIRD HIGHEST OFFICIAL BROUGHT THERE BY SECRETARY OF STATE WARREN CHRISTOPHER PRECISELY TO BE HIS POLICY BRAINS THE BOSNIA POLICY THAT MR TARNOFF DEFENDED WAS BY ALL EVIDENCE THE ONE MR CHRISTOPHER FAVORED ALL ALONG WHETHER OR NOT MR CLINTON PERSONALLY PREFERRED STRONGER ACTION ON BOSNIA THE STEPS HE HAS TAKEN TO WEAKEN THE AMERICAN MILITARY CORRELATE NATURALLY WITH MR TARNOFF'S GOAL OF RETRENCHMENT MR CLINTON HAS TREATED THE MILITARY NOT AS A PRECIOUS ASSET BUT AS A SOURCE TO BE TAPPED FOR SOCIAL AND ECONOMIC GOALS HE HAS USED THE ARMED SERVICES TO ADVANCE WOMEN'S AND GAY LIBERATION BY HIS EFFORTS TO PUT WOMEN IN COMBAT AND OVERT HOMOSEXUALS IN UNIFORM HE HAS PROPOSED CHOPPING 120 BILLION FROM DEFENSE TO FUND A LAUNDRY LIST OF DOMESTIC PROGRAMS DESPITE THIS MANY CONSERVATIVES APPARENTLY SYMPATHIZE WITH MR TARNOFF'S APPROACH OUT OF A SHARED WARINESS OF INVOLVEMENT IN BOSNIA THEY DRAW A DISTINCTION BETWEEN THE PERSIAN GULF WHERE AMERICA'S STAKES SEEMED CLEAR AND BOSNIA WHERE THEY DOUBT US INTERESTS ARE ENGAGED BUT THE DANGER IS THAT ACQUIESCING IN SERBIAN AGGRESSION WILL MAKE IT HARDER TO OPPOSE THE LIKES OF IRAQI AGGRESSION THE NEXT TIME AROUND THIS IS NO PROBLEM FOR MR TARNOFF WHO OPPOSED US ACTION IN THE GULF AS IN ALL LIKELIHOOD DID MR CHRISTOPHER WHOSE ONE PUBLISHED WORK ON FOREIGN POLICY DIPLOMACY THE NEGLECTED IMPERATIVE EXTOLS PATIENT NEGOTIATIONS WITH ADVERSARIES AS AGAINST THE USE OF FORCE FOR BOTH MEN INACTION IN BOSNIA FITS COMFORTABLY INTO A PHILOSOPHY OF PASSIVITY THE SAME DAY AS MR TARNOFF'S BRIEFING MR CHRISTOPHER APPEARED ON ABC'S NIGHTLINE IF WE INSISTED ON DOING EVERYTHING OURSELVES WE WOULD NOT BE A SUPERPOWER HE SAID WE MUST SAVE OUR POWER FOR THOSE SITUATIONS WHICH THREATEN OUR DEEPEST NATIONAL INTEREST SUCH AS IF WE WERE REALLY THREATENED BY SOMETHING IF OUR NATIONAL INTEREST WERE AT STAKE FOR EXAMPLE IF SOMEBODY WAS INVADING US OF COURSE WE'D ACT ALONE MR CHRISTOPHER SEEMS TO HAVE TROUBLE THINKING OF A PROPER USE OF MILITARY POWER OTHER THAN TO DEFEND OUR OWN SHORES AND HE SEEMS TO BELIEVE THAT POWER IS A COMMODITY THAT GETS USED UP IF IT IS NOT HUSBANDED MOST STATESMEN UNDERSTAND THAT THE OPPOSITE IS TRUE THE SUCCESSFUL EXERCISE OF POWER GENERATES MORE POWER SADDAM WAS STRONGER NOT WEAKER FOR HAVING USED HIS POWER TO CONQUER KUWAIT AND AMERICA WAS STRONGER NOT WEAKER FOR HAVING USED OURS TO UNDO HIS WORK CONVERSELY THE ABDICATION OF POWER AS IN BOSNIA WILL LEAVE AMERICA WEAKER AN OUTCOME THAT MIGHT ALARM CONSERVATIVES MORE THAN IT WOULD MR TARNOFF DESERT STORM SEEMS EASY IN HINDSIGHT BUT PRESIDENT BUSH HAD TO WORK HARD TO RALLY THE PUBLIC NO BLOOD FOR OIL SCREAMED HIS OPPONENTS BUT MR BUSH REPLIED THAT WE WERE FIGHTING TO UPHOLD INTERNATIONAL LAW AND A NEW WORLD ORDER HAVING ABANDONED THOSE PRINCIPLES IN BOSNIA WE WILL NOT SOON BE ABLE TO INVOKE THEM AGAIN NOR WILL CONSERVATIVES HAVE MUCH PURCHASE IN RESISTING MR CLINTON'S DEEP DEFENSE CUTS IF THEY REFRAIN FROM CHALLENGING THE ADMINISTRATION'S CONSTRAINED DEFINITION OF THE PROPER USE OF AMERICAN FORCE OUR KEY ALLIES IN DESERT STORM TURKEY EGYPT AND SAUDI ARABIA ARE SMARTING UNDER THE CRITICISM OF MUSLIM FUNDAMENTALISTS WHO SAY THAT BOSNIA PROVES THAT THE WEST IS HOSTILE TO ISLAM WERE SADDAM TO INVADE KUWAIT AGAIN THEY WOULD BE RELUCTANT TO COOPERATE WITH US THEIR RELUCTANCE WOULD BE REINFORCED BY DOUBTS ABOUT OUR CONSTANCY MOREOVER BY YIELDING TO THE CLAIMS THAT AMERICA CANNOT RELIEVE BOSNIA'S AGONY WITHOUT THE COOPERATION OF THE UNITED NATIONS OR ENGLAND AND FRANCE OR RUSSIA WE ARE BINDING OURSELVES WITH MYRIAD LILLIPUTIAN STRANDS THAT MAY HOLD US BACK IN FUTURE CRISES WHAT IS POLITICALLY POSSIBLE OR LEGAL UNDER INTERNATIONAL LAW RESTS HEAVILY ON PRACTICE AND PRECEDENT FAILURE TO ACT IN BOSNIA WILL MAKE IT THAT MUCH HARDER TO ACT ELSEWHERE IN THE FUTURE THIS IS APPARENTLY EXACTLY WHAT THE CLINTON STATE DEPARTMENT HAS IN MIND BUT CONSERVATIVES WHO ARE ABETTING THIS POLICY FOR REASONS OF REALISM MAY COME TO RUE THE OUTCOME AN AMERICA WHOSE POWER TO ACT ON THE WORLD STAGE WILL BE APPRECIABLY DIMINISHED MR MURAVCHIK IS A RESIDENT SCHOLAR AT THE AMERICAN ENTERPRISE INSTITUTE 9306100052 930610 REVIEW & OUTLOOK EDITORIAL POLITICAL TIDES SOMETHING'S HAPPENING IN AMERICAN POLITICS ON TUESDAY IN THE LOS ANGELES MAYOR'S RACE GOP BUSINESSMAN RICHARD RIORDAN WON 54 OF THE VOTE TO DEFEAT A STANDARD LIBERAL CANDIDATE OVER THE WEEKEND TEXAS REPUBLICAN KAY BAILEY HUTCHISON WALLOPED INCUMBENT BOB KRUEGER BY 2 TO 1 IN A US SENATE RACE AND LAST MONTH WALL STREETER BRET SCHUNDLER WON ELECTION AS A REPUBLICAN IN JERSEY CITY NJ WHERE THE GOP HAS ONLY 6 OF THE REGISTERED VOTERS THESE EVENTS MAY INDEED BODE WELL FOR REPUBLICANS AND POORLY FOR DEMOCRATS IN GENERAL AND BILL CLINTON'S PRESIDENCY IN PARTICULAR MR CLINTON HAD ENDORSED THE LOSERS IN BOTH LA AND TEXAS IT IS HARD IN ANY CASE NOT TO BE STRUCK BY THE NONTRADITIONAL CAST TO THESE RECENT ELECTION OUTCOMES THEY SUGGEST THAT AMERICAN VOTERS ARE RETHINKING WHAT KIND OF GOVERNMENT THEY WANT FOR THE FUTURE WHETHER THE POLITICAL CLASS ITSELF WILL NOTICE THE CHANGE IS ANOTHER QUESTION CERTAINLY LOS ANGELES VOTERS MADE A POWERFUL SYMBOL OF TUESDAY'S ELECTION ON THE FACE OF IT MR RIORDAN'S TRIUMPH IS REMARKABLE FOR A REPUBLICAN BUSINESSMAN IN AN OVERWHELMINGLY DEMOCRATIC CITY BUT GIVEN WHAT HE REPRESENTED TO A BRUISED AND BATTERED BUT STILL SUNNY SPOT IT IS LESS SURPRISING HERE IS A MAN WHO SAID OVER AND OVER THAT WHAT LA NEEDED FIRST AND FOREMOST WERE MORE POLICE FOR SAFER STREETS AN END TO HOSTILE REGULATION OF BUSINESS AND NO NEW TAXES THAT COULD SCARE AWAY MORE JOBS MR RIORDAN ALSO CHAMPIONED A TERMLIMIT MEASURE AND SAW THE DEFEAT OF TWO VETERANS OF THE 15MEMBER COUNCIL THAT MUST ENACT MUCH OF HIS REFORM PLAN INTO LAW CLEARLY SOMETHING IS AFOOT HERE MR RIORDAN WON 54 OF THE VOTE IN A CITY WHERE GEORGE BUSH RECEIVED LESS THAN 22 HE WON THE ENDORSEMENT OF THE TOPFINISHING BLACK CANDIDATE IN THE APRIL PRIMARY AND THE MOST PROMINENT HISPANIC CITY COUNCILMAN THE RIORDAN WIN IS ALSO SIGNIFICANT AS A REJECTION OF THE CAMPAIGN OF HIS OPPONENT COUNCILMAN MICHAEL WOO THE WOO PITCH IN THIS ELECTION WAS AN AWFUL COLLECTION OF CLASSBAITING RACIAL MAUMAUING AND ECONOMIC NONSENSE ABOUT THE GREED OF THE 1980S TO HAVE THIS SCAPEGOATING OF THE 1980S AS THE CAUSE OF OUR CURRENT ILLS REJECTED SO SOUNDLY IN SUCH A PRESUMABLY HOSPITABLE ENVIRONMENT SHOULD SET OFF A LOUD NOISE INSIDE THE OVAL OFFICE WHICH PUSHES THE SAME LINE THE EVIDENCE SO FAR HOWEVER SUGGESTS THAT MR CLINTON'S ADVISERS STILL BELIEVE IN THE POLITICS OF THE CLASS WARFARE ECONOMY HOW MANY REALITY CHECKS IS A POLITICIAN ALLOWED THOUGH MR WOO HIMSELF WAS ALSO A POTENT SYMBOL AS THE GRANDSON OF ASIAN IMMIGRANTS IN A PLACE NOW SO FULL OF THE ASPIRING FOREIGNBORN HE ALSO EXEMPLIFIES THE PERPETUAL POLITICIAN THAT ALAN EHRENHALT DESCRIBED AS A CORRUPTIVE FORCE IN AMERICAN POLITICS IN HIS RECENT UNITED STATES OF AMBITION VOTERS HAVE BECOME SKEPTICAL ABOUT THE VALUES AND INTENTIONS OF THESE PROFESSIONAL POLITICIANS IT LOOKS TO US AS IF VOTERS IN MANY PLACES ARE CONCLUDING THAT WHAT MIGHT BE CALLED THE STANDARD MODEL OF US GOVERNMENT WHICH WE'VE HAD IN THIS COUNTRY FOR ABOUT 60 YEARS SIMPLY DOESN'T WORK VERY WELL ANYMORE THAT IS YOU PAY TAXES TO SUPPORT A VARIETY OF PUBLIC AGENCIES THAT PROVIDE A MENU OF PUBLIC SERVICES THIS MODEL HAS BEEN OVERTAKEN AND NEARLY CONSUMED BY THE ADDITION OF A VAST SOCIALWELFARE STRUCTURE WHICH LIBERALS EMBRACED AS BENEFICENT BUT SUSTAINED MAINLY FOR CONSTITUENCY PURPOSES IT'S A SYSTEM OF POLITICS THAT HAS HAD A GOOD 30YEAR RUN ESPECIALLY IN CITIES BUT IS NOW COMING APART AT THE SEAMS IT'S NOT AT ALL CLEAR TO US THAT THE NEW DEMOCRATS HAVE PICKED UP ON THIS WHAT SEEMS CLEAR IS THAT POLITICIANS WHO DON'T NOTICE THE SHIFT ARE OFTEN GETTING RUN OVER 9306100051 930610 HOUSE PANEL VOTES TO LIFT RESTRICTIONS ON ABORTION FUNDS BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A HOUSE APPROPRIATIONS PANEL REVERSING A PRACTICE THAT DATES TO THE MID1970S VOTED TO REMOVE ALL LEGISLATIVE RESTRICTIONS ON FEDERAL FUNDING FOR MEDICAIDFINANCED ABORTIONS FOR POOR WOMEN PROPONENTS OF THE CURRENT LAW WHICH PERMITS FEDERAL FUNDING FOR ABORTIONS ONLY WHEN A MOTHER'S LIFE IS IN DANGER ARE SURE TO RESIST THE PROPOSED CHANGE BUT THE CLOSEDDOOR VOTES IN A LEADING SUBCOMMITTEE RAISE THE PROSPECT THAT FOR THE FIRST TIME IN MANY YEARS THE HOUSE WILL CONSIDER THE BUDGET OF THE HEALTH AND HUMAN SERVICES DEPARTMENT WITHOUT ANTIABORTION RIDERS THE ACTION COMES AT THE REQUEST OF THE CLINTON ADMINISTRATION AND REFLECTS BOTH THE PRESIDENT'S ABORTIONRIGHTS PLATFORM AND THE CHANGED MAKEUP OF THE LONGENTRENCHED APPROPRIATIONS COMMITTEE AFTER LAST YEAR'S ELECTION SUCH STATES AS CALIFORNIA NEW YORK AND MARYLAND WHICH FUND MEDICAID ABORTIONS FROM THEIR OWN TAX DOLLARS ARE A SIGNIFICANT VOTING BLOC IN THE APPROPRIATIONS SUBCOMMITTEE THAT COVERS HEALTH AND REMOVAL OF THE RESTRICTIONS NOW WOULD PERMIT WASHINGTON TO SHARE MORE OF THE COST BEYOND THESE LOCAL BUDGET IMPLICATIONS THE FIGHT HAS BROAD RAMIFICATIONS FOR THE ADMINISTRATION'S HEALTHCARE REFORM PLAN IN A LETTER TO THE SUBCOMMITTEE SECRETARY DONNA SHALALA OF THE DEPARTMENT OF HEALTH AND HUMAN SERVICES RESTATED HER DESIRE TO SEEK SOME COMPROMISE SENSITIVE TO THOSE STATES NOW RESTRICTING ABORTIONS BUT ANY SUCH AGREEMENT ON MEDICAID COULD COME BACK TO HAUNT THE WHITE HOUSE IN SHAPING HEALTHCARE PROPOSALS THAT ARE EXPECTED TO AFFECT ALL AMERICANS THE ABORTION DEBATE THIS WEEK CAME AS THE PANEL APPROVED BUDGETS FOR NOT ONLY HHS BUT ALSO THE LABOR AND EDUCATION DEPARTMENTS FOR THE FISCAL YEAR BEGINNING OCT 1 ALL THE DEPARTMENTS SUFFERED CUTS FROM THE CLINTON ADMINISTRATION'S AMBITIOUS SPENDING REQUESTS BUT LABOR SECRETARY ROBERT REICH CLEARLY BENEFITED FROM HIS WILLINGNESS TO HELP LAWMAKERS DEFINE HIS DEPARTMENT'S PRIORITIES WITHIN THE LIMITED RESOURCES AVAILABLE A GRATEFUL REP WILLIAM NATCHER D KY WHO IS CHARIMAN OF BOTH THE SUBCOMMITTEE AND FULL APPROPRIATIONS PANEL SOUGHT TO ACCOMMODATE MR REICH'S REVISED BUDGET RELATIONS WITH MS SHALALA WERE FAR MORE STRAINED BY COMPARISON WITH EDUCATION SECRETARY RICHARD RILEY APPEARED RELEGATED TO EVEN LESS INFLUENCE THESE DIFFERENCES ARE TELLING GIVEN THE FACT THAT THE BUDGET RESOLUTION THIS SPRING HAS PUT VIRTUALLY ALL OF MR CLINTON'S SECRETARIES AT A DISADVANTAGE IN PROTECTING THEIR INITIATIVES EVEN IN THE CASE OF LABOR EDUCATION AND HEALTH TRADITIONAL DEMOCRATIC PRIORITIES THE CUTS AMOUNT TO WELL OVER 56 BILLION AND IN THE SEARCH FOR FUNDS DIFFERENT DEPARTMENTS COMPETE WITH EACH OTHER THUS THE ENERGY DEPARTMENT'S SUPERCONDUCTING SUPERCOLLIDER PROJECT IN TEXAS IS VIEWED AS INCREASINGLY VULNERABLE AND AFTER CUTTING 181 MILLION IN HOUSEBACKED FUNDS FOR SMALL BUSINESS ADMINISTRATION LOAN GUARANTEES THERE IS A MOVE AFOOT IN THE SENATE TO RESTORE THE MONEY BY TAKING UNOBLIGATED DOLLARS FROM THE ALREADY TROUBLED SPACE PROGRAM 9306100050 930610 LAW LEGAL BEAT BOESKY GETS 20 MILLION IN DIVORCE PACT BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK IVAN F BOESKY IS BACK IN THE MONEY THE FORMER ARBITRAGER AND CONVICTED INSIDER TRADER WILL GET 20 MILLION IN A DIVORCE SETTLEMENT WITH HIS EXWIFE SEEMA APPROVED BY A MANHATTAN JUDGE MR BOESKY ALSO WILL RECEIVE 15000 A MONTH IN LIVING EXPENSES AND GET TO KEEP THE EXPENSIVE MALIBU CALIF HOUSE THAT MRS BOESKY PURCHASED FOR HIM AFTER HE COMPLETED HIS 22MONTH PRISON TERM IN 1990 THE ONCEHIGHFLYING SECURITIES TRADER WHO HAD BOASTED OF HIS MONEYMAKING SKILLS IN HIS BOOK MERGER MANIA PROCLAIMED DURING HIS MANHATTAN DIVORCECOURT TRIAL THAT HE WAS BROKE AS A RESULT OF 100 MILLION IN FINES AND OTHER LEGAL COSTS HE HAD INCURRED SINCE HIS 1986 GUILTY PLEA TO ONE COUNT OF ILLEGAL TRADING MR BOESKY WON'T BE KEEPING ALL OF HIS NEW WEALTH HOWEVER UNDER AN EARLIER ARRANGEMENT BETWEEN MR BOESKY AND MAXUS ENERGY CORP HE WILL HAVE TO TURN OVER 35 OF THE DIVORCE SETTLEMENT TO THE DALLAS CONCERN WHICH HAD SUED HIM OVER HIS ALLEGED INSIDER TRADING JAMES TRUITT OF DALLAS ONE OF MR BOESKY'S LAWYERS ALSO HINTED THAT HIS CLIENT MAY HAVE A GOOD DEAL LEFT TO PAY IN LEGAL BILLS HE WAS ON THE CUFF FOR A LOT OF PEOPLE INCLUDING COUNSEL MR TRUITT SAID BUT MR BOESKY HAS SETTLED MOST OF THE LAWSUITS THAT WERE BROUGHT AGAINST HIM AND STATUTES OF LIMITATIONS MAY MAKE IT DIFFICULT FOR NEW PLAINTIFFS TO SEEK A SHARE OF HIS NEWFOUND FORTUNE MR TRUITT SAID THAT SETTLEMENT NEGOTIATIONS IN THE DIVORCE CASE HEATED UP LAST WEEK AND THAT BY FRIDAY IT APPEARED THAT A DEAL WOULD BE MADE THE SETTLEMENT APPROVED BY JUDGE PHYLLIS GANGELJACOB CAME AS THE SIXWEEK TRIAL WAS ABOUT TO END IN THE COURTHOUSE ADJACENT TO THE ONE WHERE WOODY ALLEN AND MIA FARROW RECENTLY COMPLETED THEIR OWN HIGHPROFILE DISPUTE IN THE TRIAL MR BOESKY HAD SOUGHT HALF HIS WIFE'S FORTUNE WHICH WAS PUT AT ABOUT 100 MILLION THE FORMER TRADER DESERVED THIS EQUITABLE DISTRIBUTION LAWYER RENEE SCHWARTZ ARGUED AT THE TRIAL BECAUSE MR BOESKY HAD MADE HIS WIFE RICH BEYOND HER IMAGINATION THROUGH HIS LEGAL AND ILLEGAL BUSINESS ACTIVITIES MRS BOESKY'S TRIAL LAWYER EDWARD BRODSKY COUNTERED THAT MR BOESKY WOULD NEVER HAVE AMOUNTED TO ANYTHING WITHOUT THE HELP OF HIS WIFE'S WEALTHY FAMILY WHICH WAS INVOLVED IN REALESTATE DEVELOPMENT AND HE SAID THAT MR BOESKY HAD COST THE MARITAL ESTATE MUCH MORE THAN HE HAD ADDED TO IT CONSIDERING THE 100 MILLION HE ENDED UP PAYING IN FINES AS A RESULT OF HIS INSIDER TRADING AND THE DAMAGE HE HAD DONE TO THE FAMILY'S REPUTATION MRS BOESKY AND THE COUPLE'S FOUR CHILDREN HAVE TO BEAR THE NAME BOESKY THAT IS NOW SYNONYMOUS WITH CORRUPTION MR BRODSKY SAID DURING THE TRIAL CLAIMING THAT MRS BOESKY HAD BEEN REJECTED FOR MEMBERSHIP IN A MANHATTAN COOPERATIVE APARTMENT FOR THIS REASON MUCH OF MRS BOESKY'S WEALTH CAME FROM THE 1986 SALE OF THE BEVERLY HILLS HOTEL FOR 135 MILLION TO MARVIN DAVIS WHO EVENTUALLY SOLD IT TO THE SULTAN OF BRUNEI LAWYERS FOR MR BOESKY ATTEMPTED TO SHOW THAT THEIR CLIENT HAD BEEN DEEPLY INVOLVED IN RUNNING THE HOTEL DOWN TO THE SELECTION OF THE CABANA STAFF THEY ALSO ARGUED THAT IF IT WEREN'T FOR MR BOESKY'S ADVICE TO HIS WIFE SHE WOULD HAVE SOLD HER SHARE OF THE HOTEL SEVERAL YEARS EARLIER FOR A GREAT DEAL LESS MONEY BUT UNDER THE AGREEMENT MRS BOESKY WILL KEEP THE BULK OF HER FORTUNE AS WELL AS THE HUGE ESTATE THE COUPLE BOUGHT TOGETHER IN A NEW YORK CITY SUBURB AND A SUBSTANTIAL ART COLLECTION A HIGHLIGHT OF THE TRIAL WAS THE TESTIMONY OF MR BOESKY WHO TOOK THE STAND DRESSED IN ONE OF THE DARK SUITS THAT WERE HIS TRADEMARK IN HIS WALL STREET GLORY DAYS UNDER INTENSE CROSSEXAMINATION MR BOESKY WHOSE WHITE HAIR WAS SLICKED BACK AND AT NEAR SHOULDER LENGTH CHARACTERIZED HIS INSIDER TRADING AS IMPROPER AND ILLEGAL BUT NOT IMMORAL I THINK I'M A VERY MORAL PERSON MR BOESKY SAID THOUGH MRS BOESKY GETS TO KEEP THE BULK OF HER ASSETS SOME TRIAL OBSERVERS SAID THEY WERE SURPRISED THAT MRS BOESKY HAD AGREED TO GIVE UP AS MUCH AS SHE DID OTHERS SUGGESTED THAT MR BOESKY HAD SUCCEEDED IN EFFECT IN DECEIVING THE GOVERNMENT BY CLAIMING THAT 100 MILLION WAS ALL HE COULD AFFORD TO PAY IN FINES AND RESTITUTION AND THEN LATER COLLECTING 20 MILLION FROM HIS WIFE ON THE THEORY THAT IT REALLY BELONGED TO HIM ALL ALONG RAOUL FELDER A PROMINENT NEW YORK DIVORCE LAWYER SAID THAT IT APPEARED THAT MR BOESKY HAD SCAMMED THE GOVERNMENT MELVYN WEISS A PLAINTIFFS ATTORNEY AT NEW YORK LAW FIRM MILBERG WEISS BERSHAD HYNES & LERACH ECHOED THIS THEME CLAIMING THAT MR BOESKY WAS ALWAYS A MASTER OF PARKING' THE PRACTICE OF HIDING ONE'S OWNERSHIP OF SECURITIES THIS TIME HE PARKED CASH WITH SEEMA AND HE IS GETTING IT BACK MR BOESKY COULDN'T BE REACHED TO COMMENT HIS LAWYER MS SCHWARTZ DIDN'T RETURN PHONE CALLS THOMAS NEWKIRK ASSOCIATE DIRECTOR OF THE SECURITIES AND EXCHANGE COMMISSION'S ENFORCEMENT DIVISION SAID THAT WHEN THE SEC REACHED ITS 100 MILLION SETTLEMENT WITH MR BOESKY IT REVIEWED WHETHER ANY OF MRS BOESKY'S ASSETS ACTUALLY BELONGED TO HER HUSBAND HE SAID THE SEC WAS SATISFIED THAT THE ASSETS BELONGED TO MRS BOESKY ADDING SHE CAME FROM A VERY WEALTHY FAMILY MR NEWKIRK SAID THE AGENCY WON'T BE SEEKING ANY ADDITIONAL MONEY FROM MR BOESKY MR WEISS SAID IT IS UNLIKELY THAT ANY INVESTORS HURT BY MR BOESKY'S WRONGDOING IN THE 1980S WOULD BE ABLE TO GET THEIR HANDS ON HIS NEW ASSETS NOT ONLY HAVE TIME LIMITS RUN OUT ON ANY NEW CLAIMS BUT IT WILL BE HARD TO PROVE THAT THIS WAS HIS MONEY AT THE TIME MR WEISS SAID THE SETTLEMENTS PREVIOUSLY REACHED WOULDN'T BE AFFECTED HE ADDED MR BOESKY WAS AT THE CENTER OF THE INSIDER TRADING SCANDALS OF THE 1980S BOTH AS A PARTICIPANT AND EVENTUALLY AS THE GOVERNMENT INFORMANT WHO LED PROSECUTORS TO OTHER KEY WALL STREET FIGURES INCLUDING MICHAEL MILKEN INITIALLY HAILED FOR HIS GENIUS AT INVESTING IN COMPANIES THAT WERE ABOUT TO BECOME ACQUISITION TARGETS MR BOESKY CAME TO BE BEST KNOWN AS THE MAN WHO GAVE SUITCASES FILLED WITH CASH TO MARTIN SIEGEL A KIDDER PEABODY & CO INVESTMENT BANKER IN RETURN FOR INSIDE INFORMATION MR BOESKY WHO SAID AT HIS DIVORCE TRIAL THAT HE ISN'T WORKING HAS AT LEAST ONE MORE TASK LEFT IN RELATION TO HIS PAST ILLEGAL ACTIVITIES HE'S EXPECTED TO BE CALLED AS THE SECURITIES AND EXCHANGE COMMISSION'S STAR WITNESS NEXT WEEK IN A FEDERAL CIVIL TRIAL ALLEGING THAT CORPORATE RAIDER VICTOR POSNER ENGAGED IN SECURITIES LAW VIOLATIONS THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION SUED AN EMPLOYEEBENEFIT FUND ALLEGING THAT IT DISCRIMINATED AGAINST DISABLED WORKERS BY CUTTING THEIR INSURANCE BENEFITS THE EEOC ALLEGES THAT THE MASON TENDERS DISTRICT COUNCIL WELFARE FUND WHICH PROVIDES HEALTH BENEFITS TO NEW YORK CONSTRUCTION AND ASBESTOS WORKERS DISCRIMINATED AGAINST PEOPLE WITH AIDS ROGER M LEVIN AN ATTORNEY FOR THE MASON TENDERS SAID THAT UNDER FEDERAL EMPLOYEEBENEFITS LAW THE FUND CAN CUT INSURANCE BENEFITS THE FUND ACKNOWLEDGES THAT IT CUT OFF INSURANCE COVERAGE FOR PEOPLE WITH AIDS BUT PLEADS POVERTY IN A SUIT FILED AGAINST THE EEOC IN MARCH SHORTLY AFTER THE AGENCY BEGAN INVESTIGATING THE MASON TENDERS THE FUND SAID IT HAD A LOSS OF 197 MILLION IN 1990 BECAUSE OF HUGE HEALTHCARE BILLS AND A DEARTH OF CONSTRUCTION WORK BUT JAMES LEE THE EEOC'S REGIONAL ATTORNEY IN NEW YORK SAID THAT MASON TENDERS OFFERED ABSOLUTELY NOTHING IN SUPPORT OF THAT ARGUMENT PROBABLE INSOLVENCY IS ONE OF SEVERAL PERMISSIBLE DEFENSES OUTLINED IN THE EEOC POLICY COMPANIES ALSO CAN ARGUE THAT THEY SIMPLY DIDN'T DISCRIMINATE THAT THEY HAD ACTUARIAL REASONS FOR TREATING EMPLOYEES DIFFERENTLY OR THAT THEY WOULD HAVE TO DRASTICALLY RAISE PREMIUM COSTS OR CUT COVERAGE IN ORDER TO COMPLY WITH THE LAW ALTHOUGH THE GUIDELINES DON'T HAVE THE FORCE OF LAW COMPANIES THAT VIOLATE THEM RISK BEING TAKEN TO COURT BY THE EEOC LAWYERS FOR MANAGEMENT DISPUTED THE EEOC'S CONTENTION THAT EVEN EXISTING INSURANCE POLICIES ARE AFFECTED BY THE GUIDELINES THAT AND OTHER QUESTIONS SUCH AS WHETHER THE POLICY IS EVEN JUSTIFIABLE UNDER THE DISABILITIES ACT WILL HAVE TO BE ANSWERED BY COURTS I'M NOT SURE THE EEOC HAS THE AUTHORITY UNDER THE ADA TO DO WHAT IT IS PROPOSING TO DO SAID CHRIS BELL OF LAW FIRM JACKSON LEWIS SCHNITZLER & KRUPMAN IN WASHINGTON LOTS OF JUDGES WILL SAY THIS IS MORE SPECIFIC THAN THE ADA MR BELL SAID EMPLOYERS WANTING TO CUT BENEFITS WILL HAVE TO PROVIDE STRONG PROOF THAT A CERTAIN CATEGORY OF DISABILITY SHOULD BE EXCLUDED WHAT THIS SAYS TO EMPLOYERS IS YOU BETTER HAVE A VERY GOOD STATISTICAL CASE IN SINGLING OUT AN EMPLOYEE WITH A PARTICULAR DISABILITY HE SAID JUNDA WOO AND KEVIN G SALWEN CONTRIBUTED TO THIS COLUMN 9306100049 930610 REVIEW & OUTLOOK EDITORIAL ASIDES THE SCIENTIFIC METHOD TODAY AND TOMORROW THE WHITE HOUSE WILL BE HOSTING ITS CONFERENCE ON GLOBAL CLIMATE CHANGE WE'RE NOT SURE WHAT FOLKS THERE WILL DISCUSS BUT APPARENTLY IT WON'T INCLUDE THE GROWING EVIDENCE THAT GLOBAL WARMING JUST ISN'T HAPPENING OR THAT THE PRESIDENT'S PLAN TO CUT GREENHOUSE GASES MAY BE A COSTLY IRRELEVANCE AS ALDEN MEYER OF THE UNION OF CONCERNED SCIENTISTS NOTED APPROVINGLY IN A PRESS BRIEFING ON TUESDAY THEY MADE IT CLEAR THEY DON'T WANT TO GET INTO THE SCIENCE THEY DON'T WANT TO GET INTO WHETHER THE PRESIDENT'S GOAL IS A GOOD GOAL 9306100048 930610 FIBEROPTIC OUTAGES ARE LINKED TO DIGGING TELEPHONE STUDY FINDS WASHINGTON AFTER A YEARLONG STUDY OF TELEPHONENETWORK FAILURES AN INDUSTRY GROUP SAID MOST FIBEROPTIC CABLE OUTAGES ARE CAUSED BY HOLES DUG IN THE GROUND AND RECOMMENDED STRICTER CONTROLS ON EXCAVATIONS THE NETWORK RELIABILITY COUNCIL SET UP TO ADVISE THE FEDERAL COMMUNICATIONS COMMISSION AFTER MAJOR NETWORK DISRUPTIONS IN 1990 AND 1991 CONCLUDED THAT THE NATION'S PHONE NETWORKS ARE 9999 RELIABLE NONETHELESS THE STUDY FOUND THAT CABLE CUTS FROM CONSTRUCTION AND OTHER DIGGING ARE THE DOMINANT CAUSE OF FIBEROPTIC CABLE OUTAGES AND SUGGESTED THAT STATE AND FEDERAL GOVERNMENTS ENACT LAWS OR ENFORCE EXISTING ONES THAT REQUIRE CONTRACTORS AND OTHERS TO CALL UTILITIES BEFORE THEY BEGIN EXCAVATIONS THE COUNCIL EXAMINED ALL TYPES OF TELEPHONE NETWORK OUTAGES INCLUDING FAILURES OF NETWORK SIGNALING SYSTEMS LIKE THE ONES THAT CAUSED WIDESPREAD OUTAGES AT BELL ATLANTIC CORP AND PACIFIC TELESIS GROUP TWO YEARS AGO MOST SIGNALING SYSTEM PROBLEMS WERE CAUSED BY SOFTWARE GLITCHES AND ERRORS MADE DURING SCHEDULED MAINTENANCE THE STUDY CONCLUDED IT RECOMMENDED INCREASED EMPHASIS ON SYSTEM DESIGNS AND TESTING AS WELL AS MORE TRAINING IN ADVANCED SIGNALING TECHNOLOGIES TO PREVENT OUTAGES AND CAUSED BY POWER FAILURES AND FIRES THE REPORT RECOMMENDED BACKUP ROUTES TO ELIMINATE ANY SINGLE POINTS WHERE A PROBLEM WOULD HALT SERVICE IT SAID BACKUP SYSTEMS WERE PARTICULARLY IMPORTANT TO AVOID DISRUPTION OF EMERGENCY SERVICE 9306100047 930610 BANKS HAD EARNINGS TOTALING 109 BILLION IN THE FIRST QUARTER WASHINGTON COMMERCIAL BANKS EARNED RECORD PROFITS OF 109 BILLION IN THE FIRST QUARTER BUT LOANS CONTINUED TO FALL THE FEDERAL DEPOSIT INSURANCE CORP REPORTED THE STRONG RESULTS REFLECT A CONTINUATION OF TWO TRENDS THAT HAVE HELPED RESCUE THE BANKING INDUSTRY FROM TROUBLES TWO YEARS AGO LOW INTEREST RATES AND IMPROVING LOAN QUALITY IN ADDITION BANKS BENEFITED FROM AN ACCOUNTING CHANGE THAT ENABLED MANY OF THE LARGEST BANKS TO REALIZE A ONETIME GAIN STEMMING FROM DEFERRED TAX ASSETS THE FIRSTQUARTER PROFITS GREW BY 33 BILLION FROM A YEAR EARLIER AND BY 27 BILLION FROM THE FOURTH QUARTER NET LOANS AND LEASES OUTSTANDING DECLINED 06 FROM THE FOURTH QUARTER TO 197 TRILLION RETURN ON ASSETS A WIDELY ACCEPTED MEASURE OF BANK HEALTH ROSE TO 124 FOR THE NATION'S 11328 BANKS THIS IS THE FIRST THAT THE INDUSTRY AVERAGE HAS EVER RISEN ABOVE 1 A GENERAL STANDARD OF STRENGTH HOWEVER ACTING FDIC CHAIRMAN ANDREW HOVE SAID THE RATIO WOULD HAVE BEEN 096 WITHOUT THE ONETIME ACCOUNTING CHANGES AND OTHER NONRECURRING TRANSACTIONS HE ESTIMATED THAT THE INDUSTRY'S RETURN ON ASSETS WILL BE CLOSE TO 096 FOR THE YEAR AS A WHOLE EARNINGS OF THE NATION'S 410 SAVINGS BANKS ALSO SOARED TO 517 MILLION THEIR RETURN ON ASSETS WAS 101 9306100046 930610 HEARD ON THE STREET ELAN SHORTSELLERS QUESTION ITS RECORD PROFITS DESPITE STRONG BUY' STANCE BY MOST ANALYSTS BY WILLIAM POWER STAFF REPORTER OF THE WALL STREET JOURNAL LAST MONTH DRUG COMPANY ELAN FOR THE FIRST TIME FLEW A DOZEN WALL STREET ANALYSTS TO ITS IRELAND HEADQUARTERS FOR A TWODAY CHAT THE FASTGROWING COMPANY NEEDN'T HAVE BOTHERED WITH THE JUNKET WALL STREET IS ALREADY IN LOVE WITH IT MOST ANALYSTS HAVE STRONG BUY RECOMMENDATIONS ON ELAN STOCK EARLIER THIS YEAR STURZA'S MEDICAL INVESTMENT LETTER PRAISED ELAN AS ONE OF THE RARE HEALTHCARE STOCKS THAT EVEN HILLARY LIKES ELAN IS IN THE BUSINESS OF BREATHING NEW LIFE INTO OLD DRUGS BY DELIVERING THEM MORE EFFICIENTLY SUCH AS THROUGH A ONCEADAY PILL TO REPLACE FOUR DAILY DOSE ELAN'S PROFIT ROSE 63 IN THE YEAR THROUGH MARCH AFTER DOUBLING IN EACH OF THE PREVIOUS THREE YEARS BUT OTHERS SAY THERE'S A CLOUD OVER THIS MUCHLOVED COMPANY WITNESS THE BIG SHORT POSITION IN ELAN'S AMERICAN DEPOSITARY RECEIPTS TRADED ON THE AMERICAN STOCK EXCHANGE AS OF MIDMAY ELAN RANKED AS THE AMEX'S SECONDBIGGEST SHORT POSITION WITH 54 MILLION ADRS SOLD SHORT THAT IS 31 TIMES THE STOCK'S AVERAGE DAILY TRADING VOLUME IN A SHORT SALE STOCK IS BORROWED AND SOLD BY AN INVESTOR EXPECTING THE PRICE TO DROP THE SHORT POSITION IS THE AMOUNT OF STOCK THAT HASN'T YET BEEN REPURCHASED FOR RETURN TO LENDERS WHY THE BEARISH EXPECTATIONS SOME PROFESSIONAL BEARS SAY ELAN'S RECORD PROFITS LOOK BETTER THAN THEY ARE THESE SHORTSELLERS SAY MUCH OF ELAN'S PROFIT HAS COME NOT FROM OPERATING RESULTS BUT FROM A PUBLICLY TRADED RESEARCHANDDEVELOPMENT AFFILIATE DRUG RESEARCH CORP WHICH REIMBURSES ELAN FOR RESEARCH EXPENSES ALTHOUGH THE BULL CAMP SEEMS TO BE BRUSHING ASIDE SUCH CONCERNS NOW THEY MAY BECOME AN ISSUE IF THE COMPANY'S HEADY PROFIT GROWTH SLOWS ONE SHORTSELLER CALCULATES THAT 39 OF ELAN'S FISCAL 1993 PERSHARE EARNINGS CAME FROM THIS MISUNDERSTOOD MECHANISM OF DRUG RESEARCH THERE'S NOTHING WRONG WITH RELYING ON SUCH AN R&D FINANCING VEHICLE TO HELP PAY FOR RESEARCH COSTS BUT SHORTSELLERS SAY THE REIMBURSEMENTS ELAN GETS ARE MUCH HIGHER THAN THOSE AT OTHER COMPANIES WITH SIMILAR ARRANGEMENTS THIS THE SHORTS' ARGUMENT GOES HAS ALLOWED ELAN TO HIDE SOME OF ITS WEAKNESSES SUCH AS SLOWING US SALES FOR THE PROSTEP NICOTINE PATCHES IT MAKES FOR AMERICAN CYANAMID'S LEDERLE LABORATORIES THOUGH ELAN IS REPURCHASING DRUG RESEARCH FROM THE PUBLIC IT IS CREATING A NEARLY IDENTICAL ENTITY CALLED ADVANCED THERAPEUTIC SYSTEMS IT PLANS TO SELL UNITS IN THIS NEW COMPANY THROUGH A RIGHTS OFFERING TO ELAN SHAREHOLDERS AND SO AGAIN A GOOD CHUNK OF ELAN'S NET INCOME WILL COME NOT FROM OPERATING PROFIT BUT FROM REIMBURSEMENTS FOR RESEARCH ELAN OFFICIALS SAY THE SHORTSELLERS ARE JUST LOOKING FOR SOMETHING NEGATIVE BECAUSE OF THE COMPANY'S PHENOMENAL RECORD ELAN CHAIRMAN DONALD PANOZ COMPLAINS OF THE RUMOR MACHINE OF THE SHORTSELLERS YESTERDAY ELAN SPOKESMAN BRIAN CROTTY SAID HIS COMPANY IS ON TARGET TO AGAIN MEET WALL STREET EXPECTATIONS FOR EARNINGS OF 140 A SHARE FOR FISCAL 1994 BUT MR CROTTY COULDN'T OR WOULDN'T DISPROVE THE SHORTSELLER'S CALCULATIONS ON DRUG RESEARCH HE'S OBVIOUSLY ENTITLED TO MAKE HIS OWN ASSUMPTIONS AND CALCULATIONS WE DON'T DISCLOSE THE COSTS ASSOCIATED WITH THE DEVELOPMENT WORK OF DRC OR ANYTHING ELSE HE SAID MR CROTTY LATER CALLED BACK TO ADD THAT THE CALCULATION OF 39 PROFIT FROM DRUG RESEARCH IS DEFINITELY EXCESSIVE BUT HE WOULDN'T DISCLOSE A DIFFERENT NUMBER SAYING YES WE MAKE A PROFIT ON IT WE DON'T MAKE EXORBITANT PROFITS QUESTIONS ABOUT ELAN'S R&D CALCULATIONS HAVE BEEN BANDIED ABOUT BEFORE BUT THE BULLS SAY SO WHAT RICHARD SILVER A LEHMAN BROTHERS DRUG ANALYST WHOSE FAVORITE STOCKS ARE ELAN AND FOREST LABORATORIES SAYS HE ISN'T WORRIED ABOUT THE R&D ISSUE AS LONG AS ELAN'S MANUFACTURING REVENUE AND ROYALTIES KEEP GROWING FAST TOO AND HE LOVES ELAN'S MANAGEMENT THEY DELIVER EVAN STURZA EDITOR OF THE NEW YORKBASED STURZA'S NEWSLETTER SAYS HE STILL LIKES ELAN AS A LONGTERM INVESTMENT ALTHOUGH IT'S FAIRLY PRICED NOW AT 34 TIMES REPORTED EARNINGS A BETTER BUY FOR NOW MIGHT BE OUTOFFAVOR MYLAN LABORATORIES HE SAYS MEANWHILE ELAN BEST KNOWN FOR ITS PRODUCTION OF REFORMULATED VERSIONS OF EXISTING DRUGS SUCH AS ITS CARDIZEM CD MADE FOR MARION MERRELL DOW IS BUSY CONCOCTING NEW PRODUCTS ONE IS A POTENTIAL PARKINSON'S DISEASE THERAPY TO BE DELIVERED THROUGH MILKSHAKES AND PERHAPS CHICKEN BUT EVEN BULLISH ANALYSTS WONDER WHETHER THE FOOD AND DRUG ADMINISTRATION WILL RULE IT'S A DRUG NOT FOOD SAYS LEHMAN'S MR SILVERTHE PRODUCT APPEARS TO BE WALKING A FINE LINE YEAR ENDED MARCH 31 1993 FOURTH QUARTER MARCH 31 1993 9306100045 930610 SMALL BUSINESSES ARE OPTIMISTIC IN THE FACE OF DEMAND SLOWDOWN NEW YORK SEVERAL UNUSUAL FACTORS CRIMPED DEMAND FOR SMALL BUSINESSES' GOODS AND SERVICES IN THE FIRST QUARTER BUT SMALLBUSINESS OPTIMISM INCREASED ACCORDING TO AMERICAN EXPRESS CO THE FINANCIAL AND TRAVELSERVICES COMPANY IN ITS QUARTERLY SMALL BUSINESS PERFORMANCE OUTLOOK SURVEY SAID THE RISING OPTIMISM INDICATED MORE FAITH IN THE ECONOMIC RECOVERY THIS YEAR THE SURVEY ALSO SHOWS THAT THE RECOVERY IS EXPECTED TO CONTINUE MODERATELY FOR THE NEXT TWO YEARS WHEN THE ECONOMY IS LIKELY TO ACHIEVE FULL EMPLOYMENT WHICH IS GENERALLY DEFINED AS THE POINT WHEN UNEMPLOYMENT IS 55 TO 6 OF THE WORK FORCE A HARSH WINTER THAT DEPRESSED NEW HOUSING STARTS WEAK CONSUMER SPENDING AND POOR RETAILSALES GROWTH AND THE EFFECTS OF LOWERED WITHHOLDINGTAX RATES FOR 1992 SLOWED DEMAND SHARPLY IN THE FIRST QUARTER THE SURVEY INDICATED BUT THE REPORT EXPECTS DEMAND FOR SMALL BUSINESSES' GOODS AND SERVICES TO INCREASE FOR THE REST OF THIS YEAR AMERICAN EXPRESS'S OUTLOOK REPORT WHICH HAS BEEN TRACKING SMALLBUSINESS ACTIVITY SINCE 1987 EVALUATES KEY ECONOMIC DATA CONCERNING SMALL BUSINESSES FROM THE FEDERAL RESERVE BOARD THE SMALL BUSINESS ADMINISTRATION AND THE DEPARTMENT OF COMMERCE IT DEFINES SMALL BUSINESSES AS COMPANIES WITH FEWER THAN 100 EMPLOYEES AND/OR LESS THAN 5 MILLION IN ANNUAL REVENUE AMERICAN EXPRESS SAID SMALLBUSINESS OPTIMISM AS MEASURED BY THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS INDEX JUMPED NEARLY FOUR POINTS FROM THE FOURTH QUARTER TO A READING OF 1021 THE INDEX USES 1978 AS A BASE YEAR OF 100 9306100044 930610 INTERNATIONAL BRIEF DAIMLERBENZ AG GERMAN FIRM IS OPTIMISTIC THAT SALES WILL GROW IN 1994 GERMANY'S DAIMLERBENZ AG IS INCREASINGLY OPTIMISTIC IT WILL BE ABLE TO BOOST 1994 SALES AFTER AN EXPECTED DECLINE IN SALES IN 1993 ACCORDING TO GERHARD LIENER CHIEF FINANCIAL OFFICER MR LIENER SAID THE INDUSTRIAL CONCERN EXPECTS TO POST SALES OF 96 BILLION MARKS 59 BILLION IN 1993 DOWN FROM 985 BILLION MARKS IN 1992 DAIMLER IS BASING ITS GROWING OPTIMISM FOR 1994 ON HOPES THAT IT WILL DOUBLE ITS EXPECTED 1993 SALES OF ITS CCLASS MERCEDESBENZ CARS THE GERMAN AUTO MAKER MERCEDESBENZ IS OWNED BY DAIMLER IN 1993 DAIMLER EXPECTS TO SELL ABOUT 120000 CCLASS CARS AND HOPES TO SELL 240000 OF THE CARS IN 1994 THE CCLASS CAR IS A NEW COMPACT CAR THAT MERCEDES BEGAN SELLING AT THE BEGINNING OF THE MONTH IN ADDITION MERCEDES WILL BEGIN TARGETING THE SOCALLED NICHE MARKETS FOR VEHICLES BY OFFERING A FOURWHEELDRIVE CAR AND A LARGE LIMOUSINE 9306100043 930610 RESTAURANTS FACE RULE REQUIRING DISCLOSURE ON NUTRITION CLAIMS WASHINGTON REVERSING A BUSH ADMINISTRATION RULING THE FOOD AND DRUG ADMINISTRATION IS PROPOSING TO REQUIRE RESTAURANTS TO COMPLY WITH NEW NUTRITIONLABELING RULES THE PROPOSAL WHICH WAS EXPECTED MEANS THAT RESTAURANTS MAKING NUTRIENTCONTENT CLAIMS ON MENUS SUCH AS LIGHT OR LOW CHOLESTEROL WOULD HAVE TO DISCLOSE THE SCIENTIFIC BASIS OF THOSE CLAIMS OR REMOVE THE ITEMS THE RESTAURANT INDUSTRY HAS COMPLAINED THAT THE COST OF REPRINTING THE MENUS WOULD BE MILLIONS OF DOLLARS THE ACTION WHICH IS SET TO BE ANNOUNCED TODAY COMES IN RESPONSE TO A LAWSUIT BROUGHT BY TWO CONSUMERWATCHDOG GROUPS PUBLIC CITIZEN AND THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST THE GROUPS SUED AFTER THE BUSH ADMINISTRATION EXEMPTED RESTAURANTS FROM THE 1990 NUTRITIONLABELING LAW THAT APPLIES TO FOOD PRODUCTS AT GROCERY STORES MICHAEL JACOBSON EXECUTIVE DIRECTOR OF THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST SAID A RESTAURANT MENU SHOULD BE A GUIDE FOR CONSUMERS AND NOT A WORK OF FICTION THE EXEMPTION FOR RESTAURANTS DIDN'T MAKE SENSE AND IT COULDN'T BE JUSTIFIED LEGALLY THE NATIONAL RESTAURANT ASSOCIATION DECLINED TO COMMENT UNTIL IT HAD REVIEWED THE FDA'S PROPOSAL THE FDA PLANS TO SEEK PUBLIC COMMENT FOR 60 DAYS PROVISIONS GOVERNING NUTRIENTCONTENT CLAIMS WOULD TAKE EFFECT LATE NEXT YEAR PROVISIONS ON HEALTH CLAIMS WOULD TAKE EFFECT EARLY NEXT YEAR 9306100042 930610 AMOCO CANADA PLANS SALE OF LAND TOTALING 8 OF ITS PRODUCTION CALGARY ALBERTA AMOCO CANADA PETROLEUM CO SAID IT TENTATIVELY AGREED TO SELL CANADIAN OIL AND GAS PROPERTIES AMOUNTING TO 8 OF ITS PRODUCTION A SPOKESWOMAN SAID THE WHOLLY OWNED SUBSIDIARY OF AMOCO CORP SIGNED LETTERS OF INTENT WITH AT LEAST TWO BUYERS TO SELL 175 MILLION NET ACRES OF OILPRODUCING AND GASPRODUCING PROPERTIES THE PROPERTIES PRODUCE AN AVERAGE 10500 BARRELS OF CRUDE OIL AND GAS LIQUIDS AND 626 MILLION CUBIC FEET OF NATURAL GAS DAILY THE SPOKESWOMAN SAID THE SALE IS PART OF A COMPANYWIDE RESTRUCTURING AND RATIONALIZATION PROCESS THE SUBSIDIARY INCLUDED A PROVISION OF 469 MILLION CANADIAN DOLLARS IN ITS 1992 RESULTS FOR ANTICIPATED LOSSES FROM ASSET DISPOSITIONS AMOCO CANADA HAS BEEN LOSING MONEY SINCE 1988 WHEN IT ACQUIRED INSOLVENT DOME PETROLEUM CANADA LTD FOR US39 BILLION THE SPOKESWOMAN DECLINED TO IDENTIFY BUYERS BUT THE AMOCO ANNOUNCEMENT COINCIDED WITH CANADIAN NATURAL RESOURCES LTD'S REPORT OF AN AGREEMENT TO BUY OIL AND GAS ASSETS IN THE GENERAL LOCATIONS OF THE AMOCO PROPERTIES CALGARYBASED CANADIAN NATURAL ONE OF CANADA'S FASTESTGROWING JUNIOR OIL AND GAS COMPANIES DECLINED TO DISCLOSE THE SELLER OR TERMS CANADIAN NATURAL SAID THE TRANSACTION INVOLVES 5100 BARRELS A DAY OF CRUDEOIL AND LIQUIDS PRODUCTION 50 MILLION CUBIC FEET A DAY OF NATURALGAS PRODUCTION AND 600000 NET ACRES OF UNDEVELOPED LAND BILL MAGEE AN ANALYST WITH RESEARCH CAPITAL CORP ESTIMATED THE VALUE OF SUCH A TRANSACTION AT ABOUT C180 MILLION US1403 MILLION 9306100041 930610 CREDIT MARKETS CORPORATE SALE OF FLOOD OF INTERMEDIATE DEBT VIEWED AS EXPECTATION THAT RATES WILL RISE BY TERENCE DONNELLY AND THOMAS T VOGEL JR STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK STRONG INVESTOR DEMAND GREETED A FLOOD OF OVER 35 BILLION OF NEW CORPORATE BOND OFFERINGS YESTERDAY MANY OF THE NEW BONDS WHICH INCLUDED A 1 BILLION ASSETBACKED ISSUE HAD MATURITIES OF THREE TO 10 YEARS A SIGN SAY SOME ANALYSTS THAT CORPORATIONS EXPECT INTERMEDIATE RATES TO RISE AND WISH TO LOCK IN LOW RATES NOW INDEED A NUMBER OF CORPORATIONS OWNING INVESTMENT BANKS WHICH MAKE MUCH OF THEIR MONEY BY BETTING ON THE DIRECTION OF INTEREST RATES HAVE SOLD BONDS WITH INTERMEDIATE MATURITIES IN THE LAST TWO DAYS YESTERDAY FOR EXAMPLE BEAR STEARNS COS SOLD 200 MILLION OF SEVENYEAR NOTES THE ISSUER IS THE PARENT OF INVESTMENT BANK BEAR STEARNS & CO ON TUESDAY SALOMON INC PARENT OF SALOMON BROTHERS INC SOLD 150 MILLION OF 10YEAR NOTES INVESTORS AND CORPORATE TREASURERS WORRY THAT COMING INFLATION REPORTS COULD PUSH YIELDS HIGHER ESPECIALLY FOR SECURITIES WITH INTERMEDIATE AND SHORTTERM MATURITIES FEDERAL RESERVE OFFICIALS HAVE INDICATED THAT TOMORROW'S PRODUCER PRICE REPORT AND NEXT WEEK'S CONSUMER PRICE REPORT MAY BE CRITICAL IN DETERMINING WHETHER THE CENTRAL BANK WILL BEGIN TO NUDGE UP INTEREST RATES RECENT SIGNS THAT EMPLOYMENT GROWTH IS PICKING UP HAVE EASED THE FED'S ANXIETY ABOUT THE ECONOMY IF ANNUAL INFLATION LOOKS CLOSER TO 4 THAN 3 FED CHAIRMAN ALAN GREENSPAN MAY MOVE SOON TO BOOST BY A QUARTER POINT THE FEDERAL FUNDS RATE WHICH IS CHARGED FOR OVERNIGHT LOANS BETWEEN BANKS TO MEET RESERVE REQUIREMENTS YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND ROSE MORE THAN 3/8 POINT OR MORE THAN 375 FOR A BOND WITH A 1000 FACE VALUE TO 103 1/32 TO YIELD 688 DOWN FROM 691 ON TUESDAY MOST OTHER TREASURY SECURITIES ROSE ONLY SLIGHTLY OVER THE PAST THREE WEEKS SHORTTERM INTEREST RATES HAVE RISEN SHARPLY IN ANTICIPATION OF A FED MOVE TO RAISE SHORTTERM RATES IN ORDER TO COMBAT INFLATIONARY PRESSURES SINCE MAY 10 FOR EXAMPLE THE YIELD OF THE TWOYEAR NOTE HAS RISEN MORE THAN HALF A PERCENTAGE POINT TO 428 AS OF LATE YESTERDAY BECAUSE OF THESE WORRIES INVESTORS ARE BEING MORE CAUTIOUS BEFORE THE INFLATION REPORTS A LOT OF PEOPLE HAVE BEEN WAITING FOR TOMORROW'S PRODUCER PRICE INDEX NUMBER TO EITHER CONFIRM THE HIGHER LEVELS OF INFLATION THAT WERE INDICATED BY LAST MONTH'S PPI OR TO CONFIRM THEIR FEELING THAT IT WAS WEATHERRELATED AND THAT INFLATION ISN'T AT THE 4 OR 45 LEVEL SAID ZANE BROWN DIRECTOR OF FIXED INCOME AT LORD ABBETT & CO FORECASTS FOR TOMORROW'S PPI REPORT CENTER ON A 02 INCREASE BOTH WITH AND WITHOUT THE VOLATILE FOOD AND ENERGY COMPONENT THE BULK OF THE BUYING IN THE TREASURY MARKET YESTERDAY WAS ATTRIBUTED TO DEALERS COVERING SHORTSPOSITIONS WHERE THEY HAD SOLD SECURITIES IN ANTICIPATION OF BUYING THEM BACK AT LOWER LEVELS DEALERS SAID SOME OF THE SHORTS HAD BEEN SET TUESDAY AS HEDGES AGAINST POSSIBLE LOSSES ON THE FLOOD OF CORPORATE DEBT THAT WALL STREET HAD TO UNDERWRITE THIS WEEK BUT WITH MOST OF THE CORPORATE DEBT MEETING WITH GOOD DEMAND TRADERS WERE FREE TO REVERSE THOSE POSITIONS AND THE MARKET MOVED HIGHER IN RESPONSE THOSE DEALS DID WELL SO THERE WAS NO NEED TO MAINTAIN THE HEDGES SAID WILLIAM V SULLIVAN JR SENIOR VICE PRESIDENT AT DEAN WITTER REYNOLDS INC SO SOME OF THE IMPROVEMENT REPRESENTS SHORT COVERING HE SAID THERE ALSO WAS SOME OPTIMISM AMONG DEALERS ABOUT THE PROSPECTS FOR DEFICIT REDUCTION AS PRESIDENT CLINTON APPEARED WILLING TO COMPROMISE ON THE CONTROVERSIAL ENERGY TAX IN ORDER TO ENSURE PASSAGE OF HIS BROADER ECONOMIC PACKAGE MEANWHILE CORPORATIONS HAD LITTLE PROBLEM SELLING A LARGE LOAD OF NEW NOTES AND BONDS YESTERDAY YESTERDAY'S NEW CORPORATE ISSUES FOLLOWED A 3 BILLION WAVE OF OFFERINGS ON TUESDAY SUGGESTING THAT CORPORATE FINANCE OFFICIALS BELIEVE INTEREST RATES ARE AT ATTRACTIVE LEVELS NOW MOST INVESTMENTGRADE BONDS GAINED 1/8 POINT TO 3/8 POINT WHILE JUNK BONDS ROSE 1/8 POINT BUT TRADERS SAID SECONDARY VOLUME WAS LARGELY MUTED BECAUSE INVESTORS APPEAR FOCUSED ON NEW DEALS IN THE PIPELINE AND THE COMING INFLATION DATA INTERNATIONAL BUSINESS MACHINES CORP'S NEW SEVENYEAR NOTES AND 20YEAR BONDS SOLD TUESDAY ROSE ABOUT 1/8 POINT TO 1/4 POINT YESTERDAY IN SECONDARY TRADING THE SPREAD OR DIFFERENCE BETWEEN THE YIELDS ON THOSE ISSUES AND COMPARABLE TREASURYS HAD TIGHTENED ABOUT 001 PERCENTAGE POINT TRADERS SAID A SIGN OF STRONG DEMAND AMONG THE COMPANIES OFFERING NEW DEBT YESTERDAY WAS DRESSER INDUSTRIES INC A DIVERSIFIED DALLASBASED ENERGY CONCERN WITH INTERESTS IN ENERGY EXPLORATION DRILLING PRODUCTION AND TRANSMISSION THE COMPANY SOLD 300 MILLION OF SEVENYEAR NOTES THROUGH DEALERS LED BY MERRILL LYNCH & CO THE NOTES WERE PRICED AT PAR OR 100 TO YIELD 625 OR 055 PERCENTAGE POINT ABOVE THE TREASURY'S SEVENYEAR NOTE DRESSER'S DEBT IS RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAMINUS BY STANDARD & POOR'S CORP A COMPANY OFFICIAL SAID THAT IT HAS BEEN SOME 25 YEARS SINCE BORROWING RATES HAVE BEEN THIS LOW FOR THE COMPANY MUNICIPAL BOND ISSUANCE WAS BRISK ALTHOUGH SECONDARY MARKET ACTIVITY WAS SUBDUED AHEAD OF TOMORROW'S REPORT ON PRODUCER PRICES PRICES WERE 1/8 LOWER TO 1/4 HIGHER AT THE CLOSE THE WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S 570 REVENUE REFUNDING BONDS OF 2017 FOR NUCLEAR PROJECT NO 1 CLOSED STEADY AT 97 TO YIELD 591 PRIMARY MARKET DEALINGS WERE DOMINATED BY RAPIDFIRE COMPETITIVE PRICINGS AMONG THE ISSUERS WERE WISCONSIN NEW YORK STATE SANTA CLARA COUNTY CALIF THE DADE COUNTY SCHOOL DISTRICT OF FLORIDA AND THE WASHINGTON SUBURBAN SANITARY DISTRICT OF MARYLAND NEW YORK STATE'S 1539 MILLION OF VARIOUSPURPOSE GENERAL OBLIGATION BONDS WERE WON BY FIRST BOSTON CORP WITH A BID SETTING THE TRUE INTEREST COST AT 5183 PROCEEDS FROM THE SALE OF THE BONDS WILL BE USED FOR A NUMBER OF CAPITAL CONSTRUCTION PURPOSES YIELDS RANGE FROM 260 IN 1994 TO 570 IN 201423 MOODY'S HAS RATED THE ISSUE SINGLEA AND S&P HAS ASSIGNED A SINGLEAMINUS RATING PRICES OF MORTGAGEBACKED ISSUES FINISHED WITH SLIGHT GAINS IN LIGHT TRADING THE ASSETBACKED MARKET HOWEVER ABSORBED 145 BILLION IN NEW PAPER FIRSTTIME ISSUER FIRST DEPOSIT NATIONAL BANK OFFERED TWO CREDITCARD TRANSACTIONS VIA CHASE SECURITIES INC TOTALING 1 BILLION AND GREEN TREE FINANCIAL CORP OFFERED 4506 MILLION IN MANUFACTURED HOUSING CERTIFICATES VIA LEHMAN BROTHERS INC SALES OF BOTH ISSUES WERE SAID TO HAVE GONE QUICKLY BY DEALERS ON THE TRANSACTIONS WITH ISSUERS EXTRACTING TOP DOLLAR FOR THE DEALS IN SECONDARY MORTGAGE TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ENDED UNCHANGED AT 100 15/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 ISSUES FINISHED 2/32 HIGHER AT 100 23/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 SECURITIES ENDED 2/32 HIGHER AT 100 21/32 IN THE PRIMARY MARKET ONE NEW REAL ESTATE MORTGAGE INVESTMENT CONDUIT WAS ANNOUNCED A 535 MILLION ISSUE FOR FANNIE MAE SERIES 1993116 THAT WAS UNDERWRITTEN BY BEAR STEARNS THE ISSUE WAS BACKED BY 30YEAR 7 SECURITIES MEANWHILE DEMAND FOR FIXEDRATE CREDIT CARD PAPER PROVED SO STRONG THAT FIRST DEPOSIT BASED IN TILTON NH HAD LITTLE TROUBLE DESPITE ITS STATUS AS A FIRSTTIME ISSUER FIRSTTIME ISSUERS USUALLY HAVE TO OFFER INVESTORS SOME PRICE CONCESSIONS FOR THE UNFAMILIARITY OF THEIR NAMES BUT FIRST DEPOSIT WAS ABLE TO AVOID THIS TRAP BY ISSUING INTO A MARKET BEREFT OF FIXEDRATE SUPPLY SINCE A DISCOVER CREDITCARD ISSUE IN LATE JANUARY ALAN MURRAY CONTRIBUTED TO THIS ARTICLE 9306100040 930610 LEISURE & ARTS DAZZLING PREAZTEC TREASURES FROM TEOTIHUACAN BY DAVID LITTLEJOHN SAN FRANCISCO IN THE SUMMER OF 1976 THOMAS SELIGMAN THEN CURATOR FOR THE ART OF AFRICA OCEANIA AND THE AMERICAS AT THE FINE ARTS MUSEUMS OF SAN FRANCISCO RECEIVED A TELEPHONE CALL FROM A PROBATE OFFICER AT A LOCAL BANK AN ARCHITECT AND ART COLLECTOR NAMED HARALD WAGNER WHO DIED A BACHELOR AT 73 HAD WRITTEN A WILL IN WHICH HE SPECIFIED THAT THE M H DE YOUNG MEMORIAL MUSEUM ONE OF SAN FRANCISCO'S TWO CITYOWNED MUSEUMS WAS TO HAVE HIS COLLECTION OF PRECOLUMBIAN ART OF COURSE ART COLLECTORS DO THAT SORT OF THING ALL THE TIME BUT WHEN MR SELIGMAN GOT HIS FIRST LOOK AT THE ARTIFACTS SCATTERED AROUND MR WAGNER'S WAREHOUSETYPE HOME ON LOWER PACIFIC STREET HE DID A DOUBLE TAKE ON THE WALLS FLOOR TABLES AND IN VARIOUS BOXES WERE SOME 70 FRAGMENTS OF MURALS LOOTED FROM TEOTIHUACAN THE FABULOUS METROPOLIS THAT RULED CENTRAL AMERICA FROM ABOUT 150 TO 750 AD LOCATED LESS THAN AN HOUR'S DRIVE FROM WHAT IS NOW MEXICO CITY IT IS THE LARGEST SET OF RUINS IN THE HEMISPHERE MR WAGNER HAD BEEN ABLE TO BUY UP THE FRAGMENTS OPENLY AND RELATIVELY CHEAPLY IN THE EARLY 1960S WHEN THERE WERE NO LAWS AGAINST IT WHEN VERY FEW PEOPLE THOUGHT IT WRONG AND WHEN MOST COLLECTORS WERE UNINTERESTED IN THESE DIRTY HEAVY LUMPS BY 1976 HOWEVER THE ETHICAL CLIMATE HAD CHANGED AND THE SAN FRANCISCO MUSEUMS HAD TO ESTABLISH THEIR LEGAL OWNERSHIP AND DEMONSTRATE THEIR STAND AGAINST LOOTING BY OFFERING TO SHARE THEIR NEW TREASURE WITH MEXICO IT WAS AGREED THAT 36 OF THE FRAGMENTS ONCE RESTORED AND RECORDED WOULD RETURN TO THEIR COUNTRY OF ORIGIN WHILE GENEROUS THIS TURNED OUT TO BE A RELATIVELY PAINLESS ACT BECAUSE THE COLLECTION HAD MANY DUPLICATES OF INFERIOR QUALITY PART OF THE DIPLOMATIC DEAL HAMMERED OUT BETWEEN THE TWO PARTIES CALLED FOR THE MOUNTING IN SAN FRANCISCO OF THE FIRSTEVER EXHIBITION OF THE ART OF TEOTIHUACAN TO WHICH MEXICO WOULD CONTRIBUTE EXPERT ADVICE AND MAJOR LOANS BECAUSE OF THE METICULOUS CONSERVATION AND DOCUMENTATION WORK REQUIRED THE CONSTANTLY CHANGING ADMINISTRATIONS AND ATTITUDES SOUTH OF THE BORDER AND THE STATELY PACE OF NEGOTIATIONS REQUIRED WITH A SENSITIVE NEIGHBOR IT TOOK ANOTHER 12 YEARS TO PULL TOGETHER THIS SHOW WHICH OPENED MAY 26 FIFTYFIVE ITEMS IN THE EXHIBITION THE QUID PRO QUO IN EFFECT ARE OFFICIAL LOANS FROM MEXICO CITY AND TEOTIHUACAN MOST OF WHICH HAD NEVER LEFT HOME BEFORE TRANSPORTING THEM INTACT WAS LITERALLY A MONUMENTAL LABOR MR WAGNER'S PRECIOUS MURAL FRAGMENTS ARE MOUNTED IN THE SMALLEST OF SEVEN GALLERIES IN THE DE YOUNG MUSEUM SHOW WHICH RUNS UNTIL OCTOBER 31 THE REASON FOR THE LENGTH OF THE STAY IS THAT THE EXHIBITION WILL BE SHOWN EXCLUSIVELY IN SAN FRANCISCO THE MEXICANS WOULDN'T AGREE TO ANOTHER VENUE AS FAR AS I CAN TELL ONE NEEDS TO LOOK AT KATHLEEN BERRIN'S FEATHERED SERPENTS AND FLOWERING TREES 1988 TO SEE COPIES OF ALL THE WAGNER FRAGMENTS AND TRACE THIS STORY IN DETAIL SAN FRANCISCO MANAGED TO HOLD ONTO THE CREAM OF ITS BEQUEST THE WAY WE DIVIDED UP THE COLLECTION WAS SO THAT THE BEST PIECES STAYED HERE SAYS MS BERRIN WHO HAS BEEN WORKING ON THE PROJECT SINCE 1976 AND WHO SUCCEEDED MR SELIGMAN AS CURATOR IN CHARGE YOU COULD HAVE PUT MY BODY ON A TRAIN TRACK I WOULDN'T HAVE LET THOSE PIECES GO THE SAN FRANCISCO SHARE ALL OF WHICH IS ON DISPLAY INCLUDES ONE NEARLY COMPLETE 2BY15 FOOT MURAL MADE UP OF 15 PIECES OF THE UBIQUITOUS FEATHERED SERPENT OUT OF WHOSE JAWS POURS WATER THAT IRRIGATES A ROW OF 13 FLOWERING TREES UNDERNEATH HIM IN 1984 RENE MILLON OF THE UNIVERSITY OF ROCHESTER IDENTIFIED THE LONGBURIED APARTMENT COMPLEX ONE OF AN ESTIMATED 2000 FROM WHICH THE WAGNER MURALS WERE PRIED LOOSE HE AND ESTHER PASZTORY OF COLUMBIA UNIVERSITY COCURATOR OF THE EXHIBITION SPECULATE THAT FOUR SUCH SERPENTANDTREE MOTIFS WERE PAINTED ON THE WALLS OF ITS CENTRAL COURT ALL THE PIECES OF SERPENTS 2 3 AND 4 IN THE WAGNER BEQUEST WERE SENT BACK TO MEXICO MEXICO ALSO RECEIVED PAINTINGS OF TWO LARGE BIRDS VOMITING OUT SOUNDSCROLLS THREE CARTOONLIKE SMALLER BIRDS HOLDING WEAPONS SAN FRANCISCO KEPT TWO A FEW MINOR ARCHITECTURAL DECORATIONS A GRISLY REDONRED COYOTE CARRYING A GREAT SACRIFICIAL KNIFE AND A NUMBER OF MISCELLANEOUS CHUNKS BUT THE FRAGMENTS RETAINED BY THE DE YOUNG A TOTAL OF 10 LARGE IMAGES SOME OF THEM COMPOSITE ARE VIVID EVEN BRILLIANT AND THEY SEIZE THE CURIOUS MIND WITH THE DRAMA OF THEIR SURVIVAL THE CALIFORNIA CREW DECIDED TO KEEP THE PAINTINGS ATTACHED TO THE HUNKS OF WALL THE LOOTERS HAD REMOVED WHICH LOOK LIKE DUGUP PIECES OF SIDEWALK MEXICAN CONSERVATORS PREFER TO PEEL OFF THE PAINTED LAYER ATTACH IT TO A NEW BACKING AND FRAME IT LIKE AN EASEL PAINTING THIS MAKES THE MURALS EASIER TO HANDLE BUT ALSO STRIPS THEM OF ANY SENSE OF THEIR ORIGINAL NATURE I WANTED TO KEEP THEM HUGE DRAMATIC GOUGED WALLS SAYS MS BERRIN THAT'S WHAT THEY ARE THAT'S PART OF THEIR HISTORY A FEATHERED FELINE CREATURE WITH CLAWS SPITTING FIRE A STUNTED COSTUMED WARRIOR BURIED UNDER HIS BEACH BLANKET BABYLONSIZED HEADDRESS FACING A ROW OF SPIKY MAGUEY PLANTS TWO WILD COYOTES TEARING OUT THE HEART OF A DEER A ROW OF WARRIORS ON PARADE IN MORE OF THOSE FEATHERED TASSELLED TOPHEAVY HEADDRESSES LIKE INVERTED WEDDINGCAKES IN THE EXCELLENT CATALOG EDITED BY MS BERRIN AND MS PASZTORY THE EXPERTS OFFER INGENIOUS GUESSES AS TO WHAT ALL OF THESE BIZARRE IMAGES MEAN AT ONCE TOMBSILENT AND VIOLENTLY EXPRESSIVE THEY SEEM TO WANT TO CRY OUT ALL THEY KNOW ABOUT TEOTIHUACAN AND THE SECRETS OF ITS 600 YEARS OF PROSPERITY COHERENCE AND DOMINION UNDER A MYSTERIOUS PEOPLE WHO LONG PRECEDED THE AZTECS FOUND IN POWER BY CORTEZ IN 1519 THE DAZZLERS OF THE SHOW ARE TWO VOLCANIC STONE CARVINGS OF SERPENT HEADS EACH WEIGHS A TON THAT WERE THROWN OFF THE TEMPLE OF THE FEATHERED SERPENT WHEN IT WAS SUDDENLY AND VIOLENTLY DEMOLISHED ALONG WITH THE REST OF OFFICIAL TEOTIHUACAN AROUND 750 AD THESE AND OTHER COLOSSAL STONE CARVINGS ARE POISED AGAINST BIG BLOWNUP COLOR PHOTOS OF THE SITE WHICH ALONG WITH A 15MINUTE HELICOPTERSHOT FILM HELP VIEWERS UNFAMILIAR WITH TEOTIHUACAN NOW MEXICO'S MOST POPULAR TOURIST ATTRACTION TO GET SOME SENSE OF THE BREATHTAKING PLACE FROM WHICH ALL THESE THINGS CAME THE GREAT EARLY CARVINGS ARE FOLLOWED BY DISPLAYS OF SQUAT FIGURES CARVED IN STONE EVOCATIVE GREENSTONE MASKS INTRICATE INCENSE BURNERS ORANGE POTTERY VESSELS AND DOZENS OF TINY CLAY FIGURINES ALL EXCAVATED LEGALLY OR ILLEGALLY FROM THE PYRAMIDS TEMPLES AND APARTMENT COMPLEXES OF TEOTIHUACAN SINCE THE LATE 19TH CENTURY OF THE 185 EXHIBITS ITEMIZED IN THE CATALOG 105 ARE LISTED AS PROVENANCE UNKNOWN INCLUDING ALL BUT ONE OF THE MASKS AND MOST OF THE CERAMIC OBJECTS THIS USUALLY MEANS THEY WERE UNEARTHED BY GREEDY LOOTERS FOR SALE TO UNSCRUPULOUS DEALERS AFTER THE COLOSSAL STONE CARVINGS AND THE WAGNER MURALS THE MOST IMPRESSIVE OBJECTS ON LOAN ARE THE POLISHED JADEAND ALABASTERLIKE MASKS AND FIGURES FOUND IN THE TEMPLE PRECINCTS AND THE CERAMIC INCENSEBURNERS UNEARTHED FROM PUBLIC HOUSING COMPOUNDS EACH FACED WITH AN ELABORATE FRAME COMPOSED OF REMOVABLE MOLDED PLAQUES SURROUNDING THE MASK OF A HOUSEHOLD DEITY A SUPERBLY INSTALLED AND LIGHTED ARRAY OF A DOZEN OF THESE MASKS CURVING ALONG ONE END WALL CONJURES UP A DOZEN DIFFERENT MOODS AND IDEAL VISIONS OF MAN MR LITTLEJOHN IS A NOVELIST CRITIC AND PROFESSOR OF JOURNALISM AT THE UNIVERSITY OF CALIFORNIA BERKELEY 9306100039 930610 SARA LEE TO BUY TOILETRY LINES OF SMITHKLINE AGREEMENT FOR 320 MILLION IS PART OF MOVE ABROAD SALE TO WELLA IS ALSO SET BY JAMISON S PRIME STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO SARA LEE CORP CONTINUED ITS RAPID OVERSEAS EXPANSION BY AGREEING TO ACQUIRE SMITHKLINE BEECHAM PLC'S MAINLY EUROPEAN BATH AND BODYCARE LINES FOR 320 MILLION SMITHKLINE IS SELLING THE OPERATIONS AS PART OF AN EFFORT TO FOCUS ON ITS CORE PHARMACEUTICAL AND HEALTHCARE BUSINESSES IN A RELATED MOVE THE ANGLOAMERICAN CONCERN ALSO AGREED TO SELL ITS SMALLER EUROPEAN HAIRCARE LINES TO GERMANY'S WELLA AG FOR AN UNDISCLOSED PRICE AS A RESULT OF THE TWO SALES SMITHKLINE SAID IT EXPECTS TO RECORD A 100 MILLION 152 MILLION CHARGE LATER THIS YEAR SARA LEE ONCE BEST KNOWN FOR ITS FOOD PRODUCTS HAS BEEN ON A BUYING BINGE ABROAD IN RECENT YEARS DRASTICALLY EXPANDING ITS HOSIERY OTHER APPAREL AND PERSONAL CARE LINES AS WELL AS COFFEE AND GROCERY GOODS SMITHKLINE'S BATH SHOWER BABYCARE AND TOILETRIES OPERATIONS HAD SALES OF ABOUT 248 MILLION LAST YEAR AND OPERATING PROFIT OF ABOUT 40 MILLION ACCORDING TO SARA LEE SARA LEE'S PURCHASE LOOKS LIKE A GOOD FIT WITH WHAT THEY DO ALREADY SAYS WILLIAM LEACH AN ANALYST WITH DONALDSON LUFKIN & JENRETTE MORGAN STANLEY ANALYST ERIC LARSON SIMILARLY SAID THE PRODUCT MIX AND BUSINESS LINES MAKE PERFECT SENSE AND SHOULD BE EASILY INTEGRATED INTO SARA LEE'S EXISTING EUROPEAN LINES THEY ARE MARKET LEADERS IN THEIR RESPECTIVE CATEGORIES SAID A SARA LEE SPOKESWOMAN WHAT'S WORKING FOR THE BRANDS NOW WILL PROBABLY CONTINUE TO WORK FOR SARA LEE CORP THE PRODUCTS INCLUDE FISSAN THE LEADING BABYCARE LINE IN ITALY AND BRYLCREEM WHICH IS THE TOP BRAND OF MEN'S TOILETRIES IN THE UNITED KINGDOM SHE SAID SARA LEE'S PERSONALCARE DIVISION BASED IN THE NETHERLANDS SELLS PRIMARILY IN THE EUROPEAN AND ASIAN MARKETS A FEW BRANDS SUCH AS KIWI SHOE POLISH ALSO SELL IN THE US DESPITE THE CURRENT SOFT ECONOMY IN EUROPE SARA LEE EXPECTS THE SMITHKLINE BRANDS TO REMAIN STRONG THESE ARE ALL LEAD BRANDS IN THEIR CATEGORIES WE EXPECT THEM TO ENDURE A DOWN ECONOMY IN EUROPE THE SPOKESWOMAN SAID THE BUSINESSES HAVE ABOUT 1100 EMPLOYEES AT FIVE EUROPEAN PRODUCTION FACILITIES THE SALE HAD BEEN IN THE PLANNING STAGE FOR SOME TIME SAID A SMITHKLINE OFFICIAL IN AN INTERVIEW NOTING THAT ALL THE COMPANY'S NONHEALTHCARE BRANDS IN THE US WERE DISPOSED OF BY THE END OF LAST YEAR TOILETRIES AND HAIR CARE IS A COMPLEX BUSINESS WHERE WE WEREN'T REALLY COMPETITIVE BUT IT REQUIRED A LOT OF MANAGEMENT TIME AND WAS A DIVERSION FROM OUR STRATEGIC FOCUS ON CONSUMER HEALTH CARE THE BEST THING WAS TO DISPOSE OF IT WELLA IS A HAIRCARE AND PERSONAL PRODUCTS CONCERN BASED IN DARMSTADT GERMANY SMITHKLINE'S HAIRCARE OPERATIONS WHICH IT AGREED TO ACQUIRE HAD SALES LAST YEAR OF 46 MILLION STEPHEN D MOORE IN STOCKHOLM CONTRIBUTED TO THIS ARTICLE 9306100038 930610 PREMIUM SALES PLACED IN RECEIVERSHIP AS SEC CLAIMS IT DEFRAUDED INVESTORS BY NIKHIL DEOGUN STAFF REPORTER OF THE WALL STREET JOURNAL PREMIUM SALES CORP A HIGHFLYING FOODTRADING CONCERN WAS PLACED IN TEMPORARY RECEIVERSHIP AFTER FEDERAL REGULATORS ACCUSED THE COMPANY OF DEFRAUDING INVESTORS OF PERHAPS AS MUCH AS 400 MILLION IN FILINGS YESTERDAY IN US DISTRICT COURT IN MIAMI THE SECURITIES AND EXCHANGE COMMISSION STATED THAT A MATERIAL NUMBER OF THE COMPANY'S REPORTED DEALINGS WERE SHAM OR OVERSTATED TRANSACTIONS OF THE 515 MILLION THAT THE COMPANY RAISED FROM INVESTORS THE SEC ADDED ONLY APPROXIMATELY 89 MILLION IS PRESENTLY ACCOUNTED FOR NEITHER KENNETH THENNEN THE COMPANY'S PRESIDENT NOR HIS ATTORNEYS RETURNED PHONE CALLS SEEKING COMMENT THE ALLEGED FRAUD IS THE LATEST IN A SERIES OF QUESTIONABLE FINANCIAL DEALINGS THAT HAVE PLAGUED SOUTHERN FLORIDA IN RECENT YEARS IN LATE 1991 THE RETAILING OPERATIONS OF CASCADE INTERNATIONAL INC WERE FOUND TO BE LARGELY IMAGINARY AND MILLIONS OF SHARES OF STOCK TURNED OUT TO BE BOGUS EARLY LAST YEAR INVESTIGATORS CHARGED THAT FIVE OUT OF EVERY SIX DOLLARS ALLEGEDLY TAKEN IN BY COLLEGE BOUND INC FOR COACHING STUDENTS FOR COLLEGEENTRANCE EXAMS WERE FICTITIOUS BOTH COMPANIES WERE BASED IN BOCA RATON THE CASE OF PREMIUM SALES A CLOSELY HELD CONCERN BASED IN NORTH MIAMI BEACH COULD REPRESENT THE LARGEST POTENTIAL INVESTOR LOSS IN SOUTH FLORIDA HISTORY SAID THOMAS TEW A MIAMI LAWYER WHO WAS APPOINTED AS RECEIVER FOR THE COMPANY YESTERDAY MR TEW ALSO WAS THE COURTAPPOINTED RECEIVER FOR ESM GOVERNMENT SECURITIES INC THE FORT LAUDERDALE FIRM OWED CUSTOMERS MORE THAN 300 MILLION WHEN IT WAS DECLARED INSOLVENT IN 1985 PREMIUM SALES WHICH WAS FOUNDED IN 1989 ENGAGES IN THE BUSINESS OF DIVERTING GROCERYSTORE PRODUCTS COMPANIES IN THAT BUSINESS BUY HUGE QUANTITIES OF FOOD AND OTHER ITEMS AT A DISCOUNT IN VARIOUS PARTS OF THE COUNTRY AND SELL THEM AT A HIGHER PRICE IN OTHER REGIONS PREMIUM SALES HAD CLAIMED 2 BILLION IN ANNUAL SALES AND OFFICES IN CALIFORNIA KENTUCKY NEVADA AND PUERTO RICO ACCORDING TO MR TEW THE 1000 OR MORE INVESTORS IN THE COMPANY MOSTLY WEALTHY PROFESSIONALS FROM CANADA AND SOUTHERN FLORIDA WERE ATTRACTED TO ITS CLAIMS OF RETURNS OF 30 TO 40 HE ADDED BUT IN A COURT FILING YESTERDAY DAVID NELSON THE SEC'S MIAMI BRANCH CHIEF SAID HE INVESTIGATED A SAMPLING OF THE COMPANY'S INVOICES AND FOUND MOST TO BE FICTITIOUS HE SAID HIS STAFF EXAMINED TRANSACTIONS VALUED AT 6 MILLION AND FOUND ONLY ONE 17489 TRANSACTION THAT ACTUALLY TOOK PLACE A 75525 PURCHASE OF PEANUT BUTTER FOR INSTANCE WAS SUPPOSEDLY MADE FROM WETTERAU INC IN ST LOUIS WETTERAU HOWEVER HAD NO RECORD OF THE TRANSACTION AN SEC ATTORNEY CHARLES C HARPER SAID IN AN INTERVIEW THAT HE REQUESTED AN EMERGENCY HEARING IN COURT YESTERDAY AFTER OBTAINING AFFIDAVITS ON THE COMPANY'S FINANCIAL CONDITION AND REPORTS THAT RECORDS WERE BEING DESTROYED APART FROM PLACING THE COMPANY IN RECEIVERSHIP JUDGE FEDERICO A MORENO ORDERED ASSETS TO BE TEMPORARILY FROZEN MR THENNEN AND HIS ATTORNEYS HAVE UNTIL FRIDAY TO RESPOND ON TUESDAY SEVERAL OF PREMIUM SALES' CREDITORS HAD SOUGHT TO HAVE THE COMPANY DECLARED INVOLUNTARILY BANKRUPT SO THEY COULD FILE CLAIMS AGAINST ASSETS 9306100037 930610 EXCHIEF OF CARTER CENTER PLEADS GUILTY TO FRAUD GEORGE G SCHIRA PLEADED GUILTY TO NINE COUNTS OF FRAUD AND FACES A MAXIMUM SENTENCE OF 45 YEARS IN PRISON AND A FINE OF 22 MILLION SENTENCING IS SET FOR SEPT 7 MR SCHIRA WAS INDICTED IN AUGUST IN HIS TRIAL WHICH BEGAN MONDAY PROSECUTORS SAID THE DEFENDANT HAD IMPERSONATED MR CARTER AND THE SAUDI PRINCE IN A SERIES OF TELEPHONE CALLS IN 1988 THE CALLS WERE PLACED TO HARRY SOPHOCLIDES A LONDONBASED EXECUTIVE FOR GEORGE PARASKEVAIDES A GREEK SHIPPING TYCOON IN THE TELEPHONE CONVERSATIONS THE CALLERS REQUESTED DONATIONS TO HELP SUPPORT PROJECTS LINKED TO THE CENTER AS WELL AS THE CENTER ITSELF AS A RESULT ACCORDING TO PROSECUTORS MR PARASKEVAIDES TRANSFERRED A TOTAL OF 650000 INTO WHAT WAS ACTUALLY MR SCHIRA'S PERSONAL BANK ACCOUNT IN LONDON ABOUT 500000 OF THAT AMOUNT HAS BEEN RECOVERED THE REMAINING 150000 HASN'T BEEN FOUND THE CARTER CENTER WHICH DISMISSED MR SCHIRA IN 1987 CONTACTED FEDERAL INVESTIGATORS IN 1988 AFTER RECEIVING A LETTER FROM A DONOR THAT MR SCHIRA WAS MISREPRESENTING THE CENTER AFTER HE HAD BEEN DISMISSED 9306100036 930610 CREDIT RATINGS CREDIT LYONNAIS DEBT AND UNITS' SECURITIES RECEIVE DOWNGRADES NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED THE LONGTERM RATINGS OF CREDIT LYONNAIS SA AND ITS SUBSIDIARIES' SENIOR DEBT ABOUT 91 BILLION IN LONGTERM DEBT WAS AFFECTED THE RATING AGENCY SAID IT DOWNGRADED THE PARISBASED BANKING COMPANY BECAUSE CREDIT LYONNAIS'S PROFITABILITY AND ECONOMIC CAPITALIZATION WILL CONTINUE TO BE HURT BY CONTINUING ASSET QUALITY PROBLEMS MOREOVER MOODY'S SAID THAT IN LIGHT OF THE BANK'S COMING PRIVATIZATION ITS CONTINUING EARNINGS POWER WILL REPRESENT A LARGER TEST OF STRENGTH THAN IN THE PAST CREDIT LYONNAIS OBJECTED TO THE DOWNGRADE SAYING MOODY'S HAD FAILED TO MEASURE THE BANK'S STRENGTH ACCURATELY WE BELIEVE THAT MOODY'S UNDERESTIMATES THE POTENTIAL OF OUR INVESTMENTS MAINLY IN FRANCE AND EUROPE WHILE AT THE SAME TIME TAKING INTO ACCOUNT THE COSTS OF THESE INVESTMENTS THE BANK SAID ALSO HAVING PERFORMED AN EXHAUSTIVE EXAMINATION AND CONCLUDED THAT PRIVATIZATION PRESENTS NO RISK WE BELIEVE THAT MOODY'S ASSESSMENT OF THE EFFECT OF PRIVATIZATION IS INCORRECT WE WOULD ALSO LIKE TO EMPHASIZE THAT OUR SHORTTERM RATING REMAINS UNCHANGED AT THE HIGHEST LEVEL RENDERED BY MOODY'S THE SHORTTERM RATING IS PRIME1 MOODY'S ALSO SAID THE RECESSIONARY ENVIRONMENT IN FRANCE AND THROUGHOUT EUROPE WILL HAMPER THE BANK'S EFFORTS TO CONSOLIDATE RECENT EXPANSIONS AND ACQUISITIONS THE RATINGS AGENCY LOWERED CREDIT LYONNAIS'S SENIOR DEBT RATING TO SINGLEA1 FROM DOUBLEA3 SENIOR DATED SUBORDINATED DEBT TO SINGLEA2 FROM SINGLEA AND JUNIOR UNDATED SUBORDINATED DEBT TO SINGLEA3 FROM SINGLEA2 THE SUBSIDIARIES' SENIOR DEBT WAS DOWNGRADED TO SINGLEA1 FROM DOUBLEA3 AS OF DEC 31 1992 CREDIT LYONNAIS HAD MORE THAN 360 BILLION IN ASSETS 9306100035 930610 POLITICS & POLICY BANK OF BOSTON GETS FED'S NOD TO BUY FIRMS BY RON SUSKIND AND KENNETH H BACON STAFF REPORTERS OF THE WALL STREET JOURNAL DESPITE A HIGHLY UNUSUAL PUBLIC DISPLAY OF DISCORD THE FEDERAL RESERVE BOARD AGREED TO ALLOW BANK OF BOSTON CORP TO BUY TWO MIDSIZE NEW ENGLAND BANKS AFTER IT PLEDGED TO RAISE ADDITIONAL CAPITAL THE BOARD'S APPROVAL OF THE ACQUISITIONS AFTER IT INITIALLY REJECTED AT LEAST ONE LAST WEEK PROMPTED THREE OF THE FED'S SEVEN GOVERNORS TO ABSTAIN AND EXPRESS STRONG DISSATISFACTION WITH THE WAY THE DECISION WAS REACHED REGARDING ONE OF THE ACQUISITIONS WE BELIEVE THAT IT IMPAIRS THE INTEGRITY OF THE BOARD'S DECISIONMAKING PROCESS TO PERMIT AN APPLICANT TO SUBMIT NEW INFORMATION AFTER THE BOARD HAS CONSIDERED THE ORIGINAL PROPOSAL FED VICE CHAIRMAN DAVID MULLINS LAWRENCE LINDSEY AND EDWARD KELLEY SAID IN A STATEMENT JOSEPH COYNE THE FED'S SPOKESMAN SAID THE ABSTENTION BY THREE MEMBERS WAS UNPRECEDENTED NONETHELESS THE FAVORABLE VOTE BY THE FOUR OTHER FED MEMBERS WILL PERMIT BANK OF BOSTON TO PROCEED WITH PLANS TO BUY MULTIBANK FINANCIAL CORP OF DEDHAM MASS ALL SEVEN MEMBERS VOTED IN FAVOR OF THE OTHER ACQUISITION THE PLANNED PURCHASE OF SOCIETY FOR SAVINGS BANCORP OF HARTFORD CONN BANK OF BOSTON EXPECT TO BUY BOTH FOR A TOTAL OF ABOUT 443 MILLION IN STOCK BASED ON CURRENT MARKET PRICES THE FED SAID BANK OF BOSTON CAN BUY SOCIETY FOR SAVINGS WITHOUT STIPULATIONS HOWEVER THE FED WILL ALLOW THE PURCHASE OF MULTIBANK WHICH IS BURDENED WITH A FAIRLY HIGH LEVEL OF SOURED ASSETS ONLY IF BANK OF BOSTON RAISES ADDITIONAL CAPITAL OF 170 MILLION THE THREE ABSTAINERS TO MULTIBANK MADE IT CLEAR THAT THEY OBJECTED TO THE MAJORITY'S DECISION TO REOPEN NEGOTIATIONS AFTER AN INITIAL REJECTION RATHER THAN TO THE DECISION ITSELF IT'S GENERAL BOARD POLICY NOT TO BARGAIN WITH APPLICANTS SAID MICHAEL BRADFIELD A FORMER FED GENERAL COUNSEL CURRENTLY IN THE LAW FIRM OF JONES DAY REAVIS & POGUE THE BOARD WANTS THE APPLICANT TO PRESENT ITS BEST PROPOSAL AT THE BEGINNING AND TO AVOID BARGAINING WITH THE BOARD INDEED THE ABSTAINERS EXPRESSED CONCERN THAT THE PROCEDURE FOLLOWED IN THE CASE COULD ENCOURAGE APPLICANTS TO SUBMIT MARGINAL PROPOSALS AND THEN ATTEMPT TO NEGOTIATE AN ACCEPTABLE PROPOSAL DIRECTLY WITH THE BOARD THE UNORTHODOX APPROVAL RAISES THE POSSIBILITY THAT THE FED ABANDONED ITS USUAL OPERATING RULES OUT OF CONCERN FOR THE CONTINUING FRAGILITY OF THE NEW ENGLAND ECONOMY AND THE HEALTH OF THE REGION'S BANKS IF THE FED HAD TURNED DOWN THE MULTIBANK ACQUISITION ANALYSTS SAY THE DECISION COULD HAVE RAISED DOUBTS ABOUT BANK OF BOSTON'S PROMISING RECOVERY AND MIGHT HAVE DISCOURAGED OTHER REGIONAL BANKS FROM ACQUIRING SMALLER INSTITUTIONS THAT COULD BENEFIT FROM A TAKEOVER BANK OF BOSTON HAS 315 BILLION IN ASSETS AND 23 BILLION IN CAPITAL THE ACQUISITIONS OF SOCIETY FOR SAVINGS AND MULTIBANK WHICH EACH HAVE ASSETS OF ABOUT 24 BILLION WOULD FILL IN GAPS IN THE BANK'S REGIONAL FRANCHISE THE APPROVAL OF MERGER APPLICATIONS IS A HIGHLY SCRIPTED PROCESS THAT BEGINS WITH NEGOTIATIONS BETWEEN THE BANK AND THE FED STAFF DURING THESE DISCUSSIONS THE STAFF SUGGESTS BUT DOESN'T DEMAND CHANGES THAT WOULD CURE POSSIBLE BOARD OBJECTIONS TO THE PROPOSAL ONE PERSON WHO CLOSELY FOLLOWED THE BANK'S DEALINGS WITH THE FED SAID THAT THE BANK OF BOSTON EITHER DIDN'T RESPOND TO THE HINTS OR REFUSED TO PROVIDE AS MUCH CAPITAL AS THE FED STAFF SUGGESTED THE BANK OF BOSTON HAS A MAJOR ATTITUDE PROBLEM HE SAID AFTER THE FED FIRST REJECTED THE PROPOSAL LAST WEEK THE BANK OF BOSTON RETURNED QUICKLY WITH AN OFFER TO RAISE ADDITIONAL CAPITAL AND ASKED FOR A QUICK REHEARING FROM OUR POINT OF VIEW THE END RESULT WAS VERY POSITIVE SAID CHARLES K GIFFORD BANK OF BOSTON'S PRESIDENT THE PURCHASES BROADEN US IN NEW ENGLAND AND THE CAPITAL RAISING FURTHER STRENGTHENS US THE FED WAS CONCERNED WHETHER BANK OF BOSTON'S CAPITAL WAS ADEQUATE TO HANDLE THE ALMOSTSIMULTANEOUS ACQUISITIONS RAISING ADDITIONAL CAPITAL THE FED'S ORDER STATED WOULD GIVE THE BANK THE ABILITY TO HANDLE ANY UNEXPECTED PROBLEMS WITH TROUBLED ASSETS AT THE NEW SUBSIDIARIES THE CAPITAL RAISING SHOULDN'T BE A PROBLEM FOR BANK OF BOSTON ANALYSTS SAY THE BANK HAS BEEN RECOVERING STEADILY SINCE EARLY 1992 POSTING CONSISTENT INCREASES IN QUARTERLY EARNINGS AND REDUCTIONS IN SOURED ASSETS LAST YEAR THE BANK RAISED 566 MILLION IN CAPITAL THROUGH COMMON AND PREFERRED STOCK OFFERINGS AND AN ISSUANCE OF SUBORDINATED DEBENTURES TO COMPLY WITH THE FED'S ORDER BANK OF BOSTON SAID IT PLANS TO RAISE 100 MILLION THROUGH ANOTHER SUBORDINATED DEBT ISSUE AND 70 MILLION THROUGH THE SALE OF PREFERRED STOCK THE STOCKS OF THE THREE NEW ENGLAND BANKS ALL ROSE YESTERDAY AFTER BEING DEPRESSED OVER THE PAST WEEK BY REPORTS OF THE FED'S HESITANCY TO APPROVE THE DEAL MULTIBANK'S STOCK HARDEST HIT OF THE THREE REBOUNDED WITH YESTERDAY'S ANNOUNCEMENT CLOSING AT 2425 UP 4 OR 20 IN OVERTHECOUNTER TRADING SHARES OF SOCIETY FOR SAVINGS CLOSED AT 17375 UP 125 OR 78 IN OVERTHECOUNTER TRADING BANK OF BOSTON'S STOCK CLOSED AT 22375 UP 375 CENTS OR 17 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE 9306100034 930610 MARKETING & MEDIA EACH SIDE CLAIMS WIN IN CABLETV FIGHT BUT CONGRESS REALLY DECIDED THE BATTLE BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER REACHING A SETTLEMENT IN A PROLONGED ANTITRUST PROBE OF THE CABLETELEVISION INDUSTRY BY 40 STATES EACH SIDE IS CLAIMING VICTORY IN THE SQUABBLE BUT THE FIGHT WAS ACTUALLY DECIDED LAST YEAR WHEN CONGRESS IMPOSED NEW RESTRAINTS ON CABLE OPERATORS THE NATION'S SEVEN BIGGEST CABLE OPERATORS INCLUDING NO 1 TELECOMMUNICATIONS INC AND NO 2 TIME WARNER INC DENIED ALL ALLEGATIONS OF ANTICOMPETITIVE PRACTICES IN SIGNING A CONSENT DECREE TO DISPOSE OF THE ANTITRUST LAWSUIT THAT THE STATES JOINTLY FILED IN FEDERAL COURT IN THE SUIT FILED ON THE SAME DAY IT WAS SETTLED IN FEDERAL COURT IN NEW YORK THE STATES CHARGED THE COMPANIES WITH DENYING POPULAR PROGRAMMING TO RIVALS AND CHARGING HIGHER PRICES FOR IT AS A RESULT OF THE SETTLEMENT STRONG COMPETITIVE FORCES WILL BE INJECTED IN THIS MARKET NEW YORK ATTORNEY GENERAL ROBERT ABRAMS CONTENDED YOU WILL HAVE A PRICE IMPACT THAT IS BETTER FOR CONSUMERS THE CABLETELEVISION INDUSTRY'S COMPETITORS APPLAUDED THE SETTLEMENT THIS IS THE FIRST TIME I'VE SEEN SOME GENERAL RECOGNITION FROM THE CABLE INDUSTRY THAT FAIR ACCESS TO PROGRAMMING IS THE LAW OF THE LAND SAID NICHOLAS W ALLARD COUNSEL TO THE WIRELESS CABLE ASSOCIATION THE SETTLEMENT IS SIGNIFICANT BECAUSE IT SHOWS CABLE GUYS ARE RAISING THE WHITE FLAG BUT SPOKESMEN FOR CABLE COMPANIES COUNTERED THAT THE SETTLEMENT WAS GENERALLY CONSISTENT WITH THEIR EXISTING BUSINESS METHODS AND WON'T REQUIRE MUCH IN THE WAY OF NEW PRACTICES INDEED THE MAIN THRUST OF THE SETTLEMENT TO REQUIRE THE BIG CABLE OPERATORS TO MAKE THE CHANNELS THEY OWN AVAILABLE AT FAIR PRICES TO UPSTART COMPETITORS SUCH AS SATELLITE SERVICES IS ALREADY EMBODIED IN NEW REGULATIONS IN LAST YEAR'S CABLE ACT THE SETTLEMENT IS NO BIG EMANCIPATION PROCLAMATION FOR COMPETITORS TO CABLE TELEVISION SAID MICHAEL FUCHS CHAIRMAN OF HOME BOX OFFICE A UNIT OF TIME WARNER WE WERE ALREADY SELLING TO WHOMEVER THIS IS OLD NEWS TO US THE CONFRONTATION BETWEEN THE STATES AND THE CABLE INDUSTRY BEGAN IN 1988 WHEN SOCALLED WIRELESS CABLE OPERATORS DISTRIBUTORS OF PROGRAMMING VIA MICROWAVE ANTENNA AND OTHER OVERTHEAIR SIGNALS COMPLAINED ABOUT THE LACK OF ACCESS TO PROGRAMMING SOME OF THE MOST POPULAR CABLE CHANNELS SUCH AS TIME WARNER'S HBO AND VIACOM INC'S SHOWTIME ARE OWNED BY COMPANIES THAT ALSO HAVE BIG CABLETELEVISION HOLDINGS NICHOLAS W ALLARD A LAWYER FOR THE WIRE CABLE ASSOCIATION SAID SOME PROGRAMMERS WERE CHARGING CABLE RIVALS AS MUCH AS FOUR TIMES THE WHOLESALE PRICES THAT THEY ASKED OF CABLETV OPERATORS THE TENSION BETWEEN THE STATES AND THE CABLE INDUSTRY HEATED UP IN 1990 WHEN THE SEVEN BIG CABLE OPERATORS FORMED A JOINT VENTURE PRIMESTAR PARTNERS TO DISTRIBUTE TELEVISION PROGRAMS DIRECTLY TO THE HOME BY SATELLITE UNDER TERMS OF YESTERDAY'S SETTLEMENT PRIMESTAR WILL BE PERMITTED TO CONTINUE IN BUSINESS AND THE COMPANY SAID IT PLANS TO BEGIN IMMEDIATELY A FULLSCALE ROLLOUT OF ITS BUSINESS STRATEGY THE CABLETV OPERATORS ALSO SETTLED A SEPARATE LAWSUIT BROUGHT BY THE US JUSTICE DEPARTMENT 9306100033 930610 TRADING WITH JAPAN FENCED OUT US CONTRACTORS FIND THEY RARELY GET WORK ON PROJECTS IN JAPAN EVEN A SETASIDE PROGRAM THEY GRIPE HELPS LITTLE IN TIGHT CLUBBY SYSTEM NOW MANY NO LONGER TRY BY JACOB M SCHLESINGER STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE CLINTON ADMINISTRATION IS MAKING JAPAN'S CONSTRUCTION INDUSTRY A TOP PRIORITY IN ITS INTENSIFYING TRADE BATTLE WITH TOKYO IT WANTS TO DEMOLISH THE CLUBBY WAY THE JAPANESE DEAL OUT MORE THAN 250 BILLION IN PUBLICWORKS PROJECTS EACH YEAR AND IS DEMANDING THAT JAPAN START REFORMING THE SYSTEM BY THE END OF THIS MONTH OR FACE RETALIATION GOOD LUCK CONSTRUCTION IS AN EXTREME EXAMPLE OF JAPAN'S SPECIAL STRAIN OF CAPITALISM TIGHT TIES BETWEEN REGULATORS AND INDUSTRY TEND TO EXCLUDE OUTSIDERS AND DAMP COMPETITION AND BRIBES APPEAR COMMONPLACE TOKYO PROSECUTORS RECENTLY CARTED STACKS OF CASH AND GOLD BARS OUT OF A TOP POLITICIAN'S HOME ALLEGEDLY ILLEGAL PAYOFFS BY THE CONSTRUCTION INDUSTRY SOMETIMES THE RELATIONSHIPS ARE ESPECIALLY CLOSE TWO OF JAPAN'S RECENT PRIME MINISTERS MARRIED OFF RELATIVES TO FAMILIES RULING BIG CONSTRUCTION COMPANIES ONE CONSTRUCTION MOGUL IS MARRIED TO THE DAUGHTER OF A LEADING BUILDING SUPPLIER WHO HAPPENS TO HAVE A LOCK ON JOBS HANDLED BY THAT CONTRACTOR WHAT DOES ALL THIS MEAN FOR AMERICAN COMPANIES IN 1989 AFTER JAPAN PROMISED TO OPEN ITS CONSTRUCTION MARKET TO FOREIGNERS MORRISON KNUDSEN CORP DECIDED TO BREAK IN FOR NEARLY THREE YEARS THE BOISE IDAHO BUILDER TRIED TO GET CONTRACTS IT FOUND A JOINTVENTURE PARTNER IN TOKYO IT SENT OVER EMPLOYEES TO STUDY THE MARKET IT MADE THE ROUNDS OF BUREAUCRATS TO PITCH ITS SERVICES WE THOUGHT US CONTRACTORS WOULD BE GIVEN A FAIR SHOT SAYS JIM ELLIS HEAD OF MORRISON KNUDSEN'S INTERNATIONAL OPERATIONS BUT IT JUST NEVER SORT OF MATERIALIZED WE FELT IT WAS A WASTED EFFORT FEELING STYMIED THE COMPANY KISSED IT OFF HE SAYS AND WENT HOME FOR THE JAPANESE TO MAINTAIN THEIR COZY NETWORK CONTENDS THOMAS P LOGAN HEAD OF THE JAPAN OFFICE OF AUSTIN CO A CLEVELAND BUILDER THEY CAN'T HAVE OUTSIDE ELEMENTS COMING IN ON A LARGE SCALE AND THEY DON'T FOREIGN COMPANIES GET ONLY A FRACTION OF 1 OF JAPAN'S PUBLICWORKS CONSTRUCTION MARKET IN CONTRAST FOREIGN COMPANIES SOMETIMES GRAB UP TO 6 OF US FEDERAL PUBLICWORKS JOBS EVEN MANY JAPANESE SUPPORT THE CLINTON ADMINISTRATION'S DEMANDS WHICH WILL BE FORMALLY PRESENTED IN TALKS IN WASHINGTON EARLY NEXT WEEK JAPANESE CONSTRUCTION COSTS 35 TIMES MORE THAN US CONSTRUCTION SAYS MASAYOSHI YENDO A FORMER CHAIRMAN OF THE JAPAN ARCHITECTS ASSOCIATION THE CLIENT IS ALWAYS VERY MUCH CHEATED JAPAN'S TOP CONSTRUCTION COMPANIES DECLINE TO DISCUSS THEIR BIDDING PRACTICES OR OTHER ISSUES THE TIMING IS DELICATE NOTES A TAISEI CORP SPOKESMAN ALLUDING TO THE US ASSAULT ON THE INDUSTRY BUT THE JAPANESE GOVERNMENT SAYS AMERICANS SIMPLY DON'T TRY HARD ENOUGH TO LEARN THE MARKET THE LANGUAGE OR THE WAY BUSINESS IS CONDUCTED HERE IF THEY REALLY WANT TO DO MORE THEY HAVE TO MAKE MORE EFFORT SAYS NORIYUKI KAZAOKA A CONSTRUCTION MINISTRY OFFICIAL SOME US COMPANIES READILY ADMIT TO HAVING LITTLE INTEREST IN EVEN TRYING THEY WOULD RATHER SEEK EASIER RETURNS IN OTHER FOREIGN MARKETS THAN STRUGGLE IN JAPAN IT'S EXPENSIVE TO KEEP AN OFFICE IN JAPAN YOU JUST HAVE TO BE REALISTIC ABOUT IT SAYS JOHN H WILLIAMS VICE PRESIDENT OF JA JONES INC A CONTRACTOR IN CHARLOTTE NC THE SENSE OF FUTILITY RUNS ESPECIALLY DEEP BECAUSE MANY US COMPANIES THOUGHT THEY HAD CRACKED THE JAPANESE CONSTRUCTION MARKET FIVE YEARS AGO WHEN THE JAPANESE GOVERNMENT UNDER US PRESSURE CREATED AN AFFIRMATIVEACTIONTYPE SETASIDE PROGRAM THE PROGRAM INVOLVED 17 MAJOR CONSTRUCTION PROJECTS RANGING FROM A NEW AIRPORT IN WESTERN JAPAN TO A PORT HOTEL AND RESTAURANT COMPLEX IN YOKOHAMA THE JAPANESE MADE IT EASIER FOR NONJAPANESE TO JOIN THESE PROJECTS BY AMONG OTHER THINGS DROPPING A REQUIREMENT THAT A BIDDER HAVE WORKED IN JAPAN BEFORE APPLYING FOR GOVERNMENT PROJECTS THE GOVERNMENT ALSO ARMTWISTED JAPANESE COMPANIES TELLING THEM TO INCLUDE MORE AMERICANS THE IDEA WAS TO GIVE AMERICANS SOME EXPERIENCE IN THE MARKET HELP THEM FORM RELATIONSHIPS AND THEN LET THEM FLY ON THEIR OWN JAPANESE COMPANIES BY CONTRAST DON'T NEED THAT KIND OF CRUTCH THEY ESTABLISHED A US TOEHOLD BY AMONG OTHER THINGS BUILDING FACTORIES FOR JAPANESE MANUFACTURERS OR BUYING STAKES IN US CONSTRUCTION COMPANIES THEN THEY BID ON OTHER BUSINESS OBAYASHI CORP FOR EXAMPLE IS BUILDING A 140 MILLION TUNNEL IN BOSTON AND HAS JUST COMPLETED A 90 MILLION TUNNEL IN SAN ANTONIO SINCE THE SETASIDE PROGRAM BEGAN ABOUT 30 US COMPANIES HAVE GAINED LICENSES TO PARTICIPATE IN JAPANESE PUBLICWORKS PROJECTS UP FROM THREE BEFORE THAT BECHTEL GROUP INC AMERICA'S LARGEST CONTRACTOR HAS WON WORK ON SIX PROJECTS INCLUDING TWO AIRPORT PASSENGER TERMINALS AND A MANMADE ISLAND IN THE CITY OF KAWASAKI MANCINIDUFFY A NEW YORK ARCHITECTURAL FIRM IS HELPING DESIGN A CONFERENCE HALL IN YOKOHAMA ACCORDING TO A JAPANESE GOVERNMENT TALLY LAST OCTOBER AMERICANS HAD WON CONTRACTS TOTALING 954 BILLION YEN ABOUT 900 MILLION ON AN EXPANDED LIST OF SETASIDES THE PROGRAM HAS WORKED VERY WELL AS A DOOROPENING MEASURE SAYS JOHN DICKISON TOKYO MANAGER FOR CHICAGOBASED SCHAL BOVIS INC A CONSTRUCTION AND CONSULTING COMPANY IN FACT HE OPPOSES THE US THREAT OF IMPOSING SANCTIONS WHICH COULD INCLUDE BARRING JAPANESE COMPANIES FROM US GOVERNMENT CONTRACTS HE FEARS THAT THE JAPANESE MIGHT THEN CANCEL THE SETASIDE PROGRAM AND WIPE OUT THE AMERICANS' GAINS BUT OTHER AMERICANS AREN'T IMPRESSED BY THOSE GAINS THE VALUE OF PUBLICWORKS PROJECTS WON BY US COMPANIES IN JAPAN FELL 36 LAST YEAR TO 175 MILLION ACCORDING TO US GOVERNMENT FIGURES DESPITE A 5 RISE IN JAPAN'S PUBLICWORKS SPENDING THE SETASIDE AGREEMENT HASN'T ACHIEVED WHAT WE HOPED SAYS A SPOKESWOMAN FOR THE WASHINGTONBASED NATIONAL CONSTRUCTOR'S ASSOCIATION THE AGREEMENT HAS BECOME AS MUCH A FENCE AS AN OPEN DOOR SOME AMERICANS COMPLAIN GETTING WORK ON THE SPECIAL PROJECTS WAS SUPPOSED TO FACILITATE LANDING OTHER GOVERNMENT JOBS IT DIDN'T FREDERIC S BERGER VICE PRESIDENT OF LOUIS BERGER INTERNATIONAL INC A DESIGN AND ENGINEERING COMPANY BASED IN EAST ORANGE NJ SAYS THAT WHEN HE ASKS ABOUT PROJECTS NOT ON THE SETASIDE LIST WE'RE TOLD THAT AMERICANS DON'T NEED TO BE CONSIDERED LAST YEAR US COMPANIES GOT ONLY 1 MILLION IN GOVERNMENT WORK OUTSIDE THE SPECIAL POOL ACCORDING TO US OFFICIALS EVEN SOME PROJECTS COVERED BY THE AGREEMENT SEEM TO SLIP THROUGH THE AMERICANS' FINGERS THE AGREEMENT PROMISES FOREIGNERS A CHANCE TO BID ON CONTRACTS WORTH MORE THAN 25 MILLION YEN 235000 BUT WHEN JAPAN ALLOCATED 160 MILLION YEN FOR LANDSCAPING ISLANDS SUPPORTING A BRIDGE ACROSS TOKYO BAY THE BUREAUCRATS DIVIDED THE JOB INTO SEVERAL CONTRACTS MOSTLY UNDER 25 MILLION YEN AND AWARDED THE SEPARATE PIECES WITHOUT OPEN BIDDING TO THE SAME JAPANESE COMPANY THE US GOVERNMENT SAYS JAPANESE OFFICIALS SAY THEY DIDN'T INTENTIONALLY KEEP US COMPANIES OUT THEY SAY THE JOB STARTED OUT AS A SMALL CONTRACT THAT GOT BIGGER AS WORK PROGRESSED ON THE MOST VISIBLE SETASIDE JOBS JAPANESE COMPANIES PROMPTED BY THE GOVERNMENT ACTIVELY SEEK US CONCERNS TO JOIN THEIR BIDS BUT AMERICANS SAY THAT IS CHIEFLY FOR SHOW US BIDS THAT WIN ARE RARELY FOR MORE THAN 10 OF A PROJECT AND AMERICANS NEVER GET THE LEAD ROLE BECHTEL GENERALLY LEADS JOINT VENTURES IN OTHER COUNTRIES SAYS JOHN L MOORE WHO HEADS ITS TOKYO OFFICE BUT IN JAPAN THERE'S NOT MUCH WE CAN DO EXCEPT HAVE A MINOR POSITION YOU'RE JUST SORT OF IN THE WAY TAISEI A BECHTEL PARTNER IN JAPAN SAYS THE CONTRACTS ARE DESIGNED TO HELP AMERICANS LEARN ABOUT THE JAPANESE MARKET FOREIGN COMPANIES ARE NOT MEANT TO BECOME LEADERS OF PROJECTS IN THE FIRST PLACE A TAISEI SPOKESMAN SAYS AS FOR OPENING UP THE MARKET KENICHIRO SASAE A JAPANESE FOREIGN MINISTRY NEGOTIATOR SEES SOME ROOM FOR FURTHER IMPROVEMENT BUT HE ALSO SEES ROOM FOR IMPROVEMENT ON THE PART OF AMERICAN COMPANIES IN ADJUSTING TO THE MARKET HE SAYS THEY HAVE BID ON ONLY 87 OF THE 342 CONTRACTS COVERED BY THE SETASIDE PROGRAM ON ONE TOKYO HIGHWAY PROJECT THE CONSTRUCTION MINISTRY'S MR KAZAOKA SAYS WE HAD A DOZEN BIDS AND NO AMERICAN COMPANIES PARTICIPATED IN ANY AMERICANS CONTEND THERE OFTEN IS LITTLE POINT A FOREIGN COMPANY HAS TROUBLE EVEN HIRING SUBCONTRACTORS AND SUPPLIERS IN JAPAN THEY ARE LOYAL TO ESTABLISHED COMPANIES JAPANESE BUILDERS IN TURN TEND TO STICK TO LONGTERM DOMESTIC SUPPLIERS RATHER THAN HUNT AROUND FOR CHEAPER MATERIALS GUARDIAN INDUSTRIES CORP A MICHIGAN GLASSMAKER SAYS IT CAN'T PERSUADE JAPANESE GLAZERS TO INSTALL ITS WINDOWS IN BUILDINGS EVEN WITH LOWER PRICES ANOTHER PROBLEM GREASED PALMS IN JAPAN IT IS SOMETIMES DIFFICULT TO DISTINGUISH AMONG THE COMPANIES THE REGULATORS AND THE POLITICIANS SO TIGHT ARE THE RELATIONSHIPS THE GOVERNMENT PUBLICIZES LITTLE INFORMATION ABOUT WHICH PROJECTS IT WILL PUT UP FOR BID HOW IT PICKS THE WINNERS EVEN WHOM IT ALLOWS TO BID COMPANIES RELY ON THE POLITICIANS AND BUREAUCRATS TO PROVIDE THE NECESSARY INSIDE INFORMATION THE BUREAUCRATS IN TURN RELY ON THE CONTRACTORS TO HELP SHAPE THE PROJECTS SAYS MR YENDO THE ARCHITECT THEY OFTEN TURN UP ON A CONSTRUCTION COMPANY'S PAYROLL AFTER RETIRING FROM THE GOVERNMENT WHAT DO THE POLITICIANS GET LOTS OF CASH THE CONSTRUCTION INDUSTRY IS BELIEVED TO BE THE BIGGEST CONTRIBUTOR TO THE RULING LIBERAL DEMOCRATIC PARTY AND AS SUCH IS THE FOUNDATION OF JAPANESE CONSERVATIVE POLITICS WRITES JOURNALIST SHUNJI TAOKA THE CONTRIBUTIONS SOMETIMES GET A LITTLE FUZZY PROSECUTORS ARE EXAMINING MAJOR CONTRACTORS' RECORDS TO SEE WHETHER THEY MAY HAVE PAID OFF SHIN KANEMARU UNTIL LAST YEAR THE COUNTRY'S MOST POWERFUL POLITICIAN THE JAPANESE PRESS HAS SAID PAYOFFS WERE SO COMMONPLACE THAT CONTRACTORS DEVISED A SYSTEM OF CODE WORDS A CUP OF COFFEE A BEANPASTE CAKE TO DESCRIBE THE SIZE OF VARIOUS DONATIONS ONE REPORT SAID OFFICEHOLDERS WERE LETTERGRADED ACCORDING TO THEIR USEFULNESS IN SECURING WORK MOST CONSTRUCTION EXECUTIVES HAVE NEITHER CONFIRMED NOR DENIED THE ALLEGATIONS BUT THE INDUSTRY GROUP HAS MADE THE CURIOUS VOW NEVER TO MAKE SECRET PAYMENTS TO POLITICIANS IN THE FUTURE THOUGH THE POLICE HAVE TAKEN CASH AND GOLD BARS FROM MR KANEMARU'S HOME HE HAS AT THIS POINT BEEN CHARGED ONLY WITH TAX EVASION HE IS EXPECTED TO MAKE HIS FIRST FORMAL RESPONSE TO THE CHARGES WHEN HE GOES ON TRIAL NEXT MONTH IN ANY EVENT FEW OUTSIDERS BELIEVE THEY ARE GETTING A FAIR SHAKE THERE'S SOME SENSE THAT THE WINNERS ARE ALREADY SELECTED BEFORE THE BID IS ANNOUNCED SAYS MICHITAKA YAMAGUCHI WHO RUNS THE TOKYO OFFICE FOR RTKL INTERNATIONAL LTD A BALTIMORE ARCHITECTURAL FIRM THAT HAS YET TO WIN ANY WORK ON SETASIDE PROJECTS ONE TELLING SIGN MR YAMAGUCHI SAYS HE IS ALREADY READING NEWSPAPER ARTICLES NAMING THE JAPANESE COMPANIES THAT WILL HELP BUILD PARTS OF THE 1998 WINTER OLYMPICS COMPLEX IN NAGANO JAPAN ONLY THING IS OFFICIAL BIDDING ON THE PROJECT HAS NOT YET BEGUN 9306100032 930610 WHAT'S NEWS BUSINESS AND FINANCE DEMOCRATIC SENATE LEADERS TENTATIVELY AGREED TO RAISE THE TAX ON GASOLINE AND OTHER TRANSPORTATION FUELS BY ABOUT NINE CENTS A GALLON TO REPLACE CLINTON'S BROAD ENERGY TAX A COMPROMISE EVOLVING IN THE SENATE WOULD ALSO SQUEEZE MORE SAVINGS OUT OF THE MEDICARE PROGRAM WIPE OUT THE PROPOSAL TO OFFER TAX BREAKS FOR INVESTMENTS IN URBAN ENTERPRISE ZONES AND TRIM A PLAN ALLOWING SMALL BUSINESSES TO WRITE OFF EQUIPMENT PURCHASES APPLE COMPUTER'S STOCK DROPPED 525 OR 11 TO 4425 AFTER THE COMPANY SAID THAT EARNINGS IN THE CURRENT HALF WILL BE BELOW YEAREARLIER LEVELS THE DISCLOSURE RENEWED FEARS THAT THE PC PRICE WARS ARE FAR FROM OVER AND IN FACT MAY BE GAINING MOMENTUM SARA LEE AGREED TO BUY SMITHKLINE BEECHAM'S BATH AND BODYCARE LINES WHICH ARE MAINLY IN EUROPE FOR 320 MILLION IN A SEPARATE DEAL SMITHKLINE PLANS TO SELL ITS SMALLER EUROPEAN HAIRCARE LINES TO WELLA OF GERMANY A SENATE BANKING PANEL REJECTED AN ADMINISTRATION PROPOSAL TO REQUIRE THE FDIC TO IMPOSE AN EXAMINATION FEE ON SOME 7000 SMALL BANKS IT ALSO VOTED TO MAKE THE FDIC PAY ALL DEPOSITORS OF FAILED BANKS EVEN THOSE WHO ARE UNINSURED BEFORE CREDITORS AFFILIATED PUBLICATIONS IS EXPECTED TODAY TO CONSIDER A BUYOUT OFFER OF ABOUT 1 BILLION FROM THE NEW YORK TIMES FOR THE BOSTON GLOBE THE OFFER WOULD GUARANTEE THE CONTROLLING TAYLOR FAMILY EDITORIAL INDEPENDENCE PEOPLE CLOSE TO THE COMPANIES SAID IMMUNE RESPONSE SHARES PLUNGED 5625 OR 26 TO 16 AFTER INVESTORS REACTED SKEPTICALLY TO ITS UPDATE ON A DRUG THAT IS SUPPOSED TO BOOST THE IMMUNE SYSTEMS OF AIDS PATIENTS THE US SHOULD ADOPT RULES TO EXPEDITE LEGISLATION AIDING HIGHTECHNOLOGY INDUSTRIES INVOLVED IN TRADE BATTLES THE BUSINESSBACKED COUNCIL ON COMPETITIVENESS RECOMMENDED THE FED AGREED TO LET BANK OF BOSTON BUY TWO NEW ENGLAND BANKS AFTER IT PLEDGED TO RAISE MORE CAPITAL THE WORLD BANK'S INTERNATIONAL FINANCE UNIT PLANS TO ANNOUNCE TODAY AN INDEX FUND AIMED AT INSTITUTIONS TO INVEST IN 18 EMERGING STOCK MARKETS CITICORP IS CHANGING ITS WARRANTIES ON CONSUMER PRODUCTS PURCHASED WITH ITS CREDIT CARDS MAKING THE COVERAGE FOR EACH PRODUCT LAST AS LONG AS A MINIMUM ESTIMATE OF ITS EXPECTED LIFE PREMIUM SALES WAS PLACED IN TEMPORARY RECEIVERSHIP AFTER REGULATORS SAID THE FOODTRADING FIRM DEFRAUDED INVESTORS OF AS MUCH AS 400 MILLION LIBBEYOWENSFORD SUED THREE OHIO FIRMS AND A BUSINESS PROFESSOR ALLEGING THEY CONSPIRED WITH COMPANY OFFICIALS TO DEFRAUD THE GLASS MAKER MIRAMAR HOTEL & INVESTMENT GOT A 114 BILLION JOINT BID FROM CITIC PACIFIC AND CHEUNG KONG IN THE BIGGEST TAKEOVER BID IN HONG KONG IN TWO YEARS THE TWO COMPANIES' OFFER REPRESENTS A FURTHER VOTE OF CONFIDENCE BY CHINA IN THE COLONY'S PROPERTY MARKET BONDS LEHMAN BROTHERS TREASURY INDEX 512821 UP 1826 COMMODITIES OIL 1964 A BARREL OFF ONE CENT DOW JONES FUTURES INDEX 12103 UP 058 SPOT INDEX 11994 OFF 045 DOLLAR 10645 YEN UP 005 16350 MARKS UP 00105 9306100031 930610 ECONOMY OPEC TRYING TO STEADY PRICES MOLLIFY KUWAIT BECAUSE EMIRATE IS SEEKING PRODUCTION RISE GOALS ARE HARD TO RECONCILE BY JAMES TANNER STAFF REPORTER OF THE WALL STREET JOURNAL GENEVA OPEC OIL MINISTERS LAST NIGHT WERE SEARCHING FOR A FORMULA THAT WILL ALLOW KUWAIT AND SOME OTHER MEMBERS TO PRODUCE MORE PETROLEUM WITHOUT WRECKING THE WORLD OIL MARKET AFTER THREE DAYS OF TALKS MOST OF THE MINISTERS OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES SEEMED WILLING TO ACCOMMODATE KUWAIT'S PUSH FOR A HIGHER PRODUCTION QUOTA BUT WERE DIVIDED ON HOW TO DO IT WE HAVE NARROWED THE GAP JEAN PING GABON'S OIL MINISTER AND OPEC'S PRESIDENT SAID STILL NEITHER HE NOR ANY OTHER MINISTER HAD COME UP WITH A SATISFACTORY THIRDQUARTER PRODUCTION FIGURE THAT WOULD PUSH UP PRODUCTION AS WELL AS OIL PRICES OR AT LEAST KEEP THEM FROM FALLING BUT SEVERAL MINISTERS WERE KNOWN TO BE WORKING ON PROPOSALS WITH FIGURES FOR THIRDQUARTER PRODUCTION THAT SHOULD BE READY BY THE TIME THEY MEET AGAIN TODAY ACCORDING TO VARIOUS MINISTERS RECOMMENDATIONS WILL RANGE FROM A CALL FOR LESS THAN CURRENT OUTPUT OF 242 MILLION BARRELS A DAY TO AS MUCH AS 245 MILLION A DAY TO ACCOMMODATE BOTH KUWAIT AND SOME OTHERS SUCH AS NIGERIA WHICH ALSO ARE SEEKING HIGHER PRODUCTION LEVELS DEMAND FOR OPEC OIL IN THE THIRD QUARTER HAS BEEN ESTIMATED AT AROUND 242 MILLION BARRELS A DAY PLUS INVENTORY ADDITIONS BY THE OIL COMPANIES WHICH USUALLY ARE AS HIGH AS 700000 BARRELS A DAY IN THE QUARTER AMONG THOSE CONTINUING TO URGE LITTLE CHANGE IN OUTPUT TO PROP UP PETROLEUM PRICES ARE THE OIL MINISTERS OF OPEC'S TWO LARGEST PRODUCERS SAUDI ARABIA AND IRAN ALSO ACCORDING TO PEOPLE FAMILIAR WITH THE DELIBERATIONS BOTH INSIST THEY WON'T GIVE UP A SINGLE BARREL OF THEIR OWN PRODUCTION TO ALLOW KUWAIT OR ANY OTHER COUNTRY A HIGHER QUOTA AT THIS TIME NEVERTHELESS ALI AHMAD ALBAGHLI KUWAIT'S OIL MINISTER WAS UNBENDING IN HIS DEMAND THAT OPEC FULFILL A FEBRUARY PROMISE TO RESTORE THE EMIRATE'S PRODUCTION QUOTA TO THE LEVEL OF COUNTRIES WITH COMPARABLE OUTPUT CAPACITIES ALTHOUGH HE DECLINED TO NAME THE COUNTRIES WITH WHOM KUWAIT SEEKS PRODUCTION PARITY BOTH NIGERIA AND THE UNITED ARAB EMIRATES WOULD QUALIFY THAT WOULD IMPLY A 25 INCREASE IN KUWAIT'S CURRENT QUOTA OF 16 MILLION BARRELS A DAY ALTHOUGH MR ALBAGHLI WOULDN'T SPECIFY THE NUMBER OF BARRELS THAT WOULD SATISFY KUWAIT HE INSISTED IN AN INTERVIEW THAT THE INCREASE MUST COME IN THE THIRD QUARTER RATHER THAN BE DELAYED TO THE FOURTH AS SOME MINISTERS HAVE SUGGESTED THE MAJORITY RECOGNIZES THAT WE HAVE A RIGHT TO ASK FOR THIS INCREASE HE SAID STILL THE KUWAITI MINISTER SAID WE ARE READY TO SHOW SOME FLEXIBILITY AT THE PREVIOUS MEETING IN FEBRUARY HE NOTED THAT DISCUSSIONS WERE CONFRONTATIONAL WE WANT THIS CONFERENCE TO SUCCEED HE SAID THE LAST ONE WAS A NIGHTMARE THE KUWAITI MINISTER SAID HE HADN'T RECEIVED ANY SPECIFIC OFFERS LAST NIGHT BUT THAT HE EXPECTED TO RECEIVE ONE OR MORE SHORTLY THE MOST IMPORTANT FIGURE HE IS LOOKING FOR IS THE PRODUCTION CEILING FOR THE THIRD QUARTER THAT CEILING CURRENTLY IS 236 MILLION BARRELS A DAY BUT SEVERAL COUNTRIES ARE EXCEEDING THEIR QUOTAS PUSHING TOTAL OUTPUT TO 242 MILLION BARRELS A DAY LET'S ALL AGREE ON THE CEILING AND THEN DETERMINE WHO WILL GET THE INCREASES MR ALBAGHLI SAID WE HAVE AN IDEA OF THE SHARE THAT KUWAIT MUST GET BUT WE NEED TO KNOW HOW BIG IS THE CAKE ADDED A SENIOR KUWAITI OFFICIAL BHUSHAN BAHREE CONTRIBUTED TO THIS ARTICLE 9306100030 930610 INTERNATIONAL BOEING DEUTSCHE AEROSPACE SET FORECAST FOR GIANT JET A WALL STREET JOURNAL NEWS ROUNDUP BOEING CO AND DEUTSCHE AEROSPACE OF GERMANY ARE FORECASTING GLOBAL DEMAND OF 500 FOR AN ALLNEW MODEL OF SUPERJUMBO JET BY THE YEAR 2010 ACCORDING TO PEOPLE FAMILIAR WITH THE FINDINGS THE VALUE OF THE MARKET FOR THE PLANES LIKELY WOULD EXCEED 100 BILLION BOEING AND DEUTSCHE AEROSPACE LEADING MEMBERS OF A NEW PARTNERSHIP THAT AIMS TO SEIZE CONTROL OF THE EMERGING MARKET FOR SUCH JETS ARE EXPECTED TO ANNOUNCE THEIR PRELIMINARY ESTIMATE TODAY AT THE PARIS AIR SHOW DISCLOSURE OF THE ASSESSMENT SIGNALS MANUFACTURER CONFIDENCE THAT THE JETS WOULD ENJOY HEALTHY DEMAND AND THAT THE COMPANIES WANT THEIR WORK TO BE PERCEIVED AS PROCEEDING SWIFTLY THE BOEINGLED TEAM HAS IGNITED CONTROVERSY IN EUROPE BECAUSE IT INCLUDES COMPANIES THAT ALSO ARE PARTNERS IN THE AIRBUS INDUSTRIE CONSORTIUM WHILE EXCLUDING PARTICIPATION BY THE CONSORTIUM ITSELF A SEPARATE BUSINESS ENTITY BESIDES DEUTSCHE AEROSPACE KNOWN AS DASA A UNIT OF GERMAN INDUSTRIAL GIANT DAIMLER BENZ AG OTHER AIRBUS PARTNERS IN THE PROJECT INCLUDE BRITISH AEROSPACE PLC AEROSPATIALE OF FRANCE AND CONSTRUCIONNES AERONAUTICAS SA OF SPAIN AIRBUS HASN'T BACKED OFF ITS OWN PLANS FOR SUPERJUMBO JET ANNOUNCING THIS WEEK THAT IT IS PROCEEDING WITH STUDIES OF A 700 TO 800SEAT JET CALLED THE A3XX 9306100029 930610 WHO'S NEWS ELECTION AS LOS ANGELES MAYOR TO TEST RICHARD RIORDAN'S TURNAROUND CLAIMS BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES THE ELECTION OF RICHARD RIORDAN AS MAYOR OF LOS ANGELES WILL TEST WHETHER HE CAN TURN AROUND THE NATION'S SECONDLARGEST CITY JUST AS HE SAYS HE SAVED MATTEL INC AND OTHER COMPANIES IN WHICH HE ONCE INVESTED THE PEOPLE ARE SAYING WE DON'T WANT BUSINESS AS USUSAL' THE 63YEAROLD MAYORELECT SAID AT A NEWS CONFERENCE FOLLOWING HIS VICTORY OVER CITY COUNCILMAN MICHAEL WOO MR RIORDAN WHO CARRIED 54 OF THE VOTE IN TUESDAY'S ELECTION SAID HIS FIRST PRIORITY IS TO MAKE LA SAFE BECAUSE BUSINESSES AREN'T GOING TO WANT TO COME INTO A WAR ZONE CENTRAL TO HIS EFFORT WILL BE THE HIRING OF 3000 MORE POLICE OFFICERS TO PAY FOR THEM MR RIORDAN WANTS TO LEASE LOS ANGELES INTERNATIONAL AIRPORT TO A PRIVATE OPERATOR GENERATING 250 MILLION UP FRONT AND YEARLY RENTALS GROWING FROM 130 MILLION IN THE FIRST YEAR TO 700 MILLION IN THE TENTH HE ALSO WANTS TO INCREASE NEIGHBORHOODWATCH PROGRAMS PROVIDING BLOCK CAPTAINS WITH CELLULAR PHONES AND CAMCORDERS A BIG PROMOTER OF PRIVATIZATION MR RIORDAN SAYS THE CITY CAN SAVE 40 MILLION A YEAR BY CONTRACTING OUT ITS GARBAGE COLLECTION AND HE IS CONSIDERING JOBBING OUT OTHER SERVICES SUCH AS STREET MAINTENANCE AND REPAIR IT IS ALL PART OF THE MANAGEMENT REVOLUTION AT CITY HALL THAT MR RIORDAN HAS PLEDGED USING THE LATEST BUSINESSCONSULTANT LINGO HE TALKS OF IMPLEMENTING MANAGEMENTBYOBJECTIVE PROGRAMS TO MEASURE THE PERFORMANCE OF CITY DEPARTMENTS AND SETTING PERFORMANCE STANDARDS TO INCREASE WORKER PRODUCTIVITY THIS GROWS OUT OF HIS BUSINESS BACKGROUND SAID KEN DICKERSON A SENIOR VICE PRESIDENT OF ATLANTIC RICHFIELD CO THE BIGGEST COMPANY IN LOS ANGELES BUSINESSES HAVE TO RESTRUCTURE HOMEOWNERS HAVE TO RESTRUCTURE AND GOVERNMENT HAS TO RESTRUCTURE AMONG THE PLEDGES MR RIORDAN REITERATED YESTERDAY WAS TO MAKE LOS ANGELES BUSINESSFRIENDLY TO ENTREPRENEURS AND TO MAKE VENTURECAPITAL BANK LOANS AVAILABLE TO MINORITIES IN THIS CITY THE EIGHTH AND YOUNGEST CHILD OF AN IRISHCATHOLIC FAMILY IN FLUSHING NY MR RIORDAN GOT HIS START AS A LAWYER IN LOS ANGELES IN THE LATE 1950S BUT IT WAS AS A VENTURE CAPITALIST AND STRATEGIST OF MERGERS AND ACQUISITIONS OF MIDDLEMARKET COMPANIES THAT MR RIORDAN MADE MUCH OF HIS FORTUNE WHICH ACCORDING TO REPORTS IN LOS ANGELES NEWSPAPERS TOTALS MORE THAN 100 MILLION TODAY STILL MR RIORDAN'S RECORD AS A TURNAROUND ARTIST IS FAR FROM CLEAR THOUGH HIS CAMPAIGN ADS WOULD HAVE VOTERS BELIEVE HE SINGLEHANDEDLY RESCUED MATTEL IN THE 1980S IT WAS THE MANAGEMENT TEAM SELECTED BY HIM AND OTHER LARGER INVESTORS THAT IS GENERALLY CREDITED WITH SAVING THE TOY MAKER AND WHILE MR RIORDAN'S CAMPAIGN LITERATURE TOUTED HIS ECONOMIC VISION HAS HELPED CREATE TENS OF THOUSANDS OF JOBS A LOS ANGELES TIMES STUDY DURING THE CAMPAIGN REVEALED THAT HIS EIGHT LARGEST BUYOUTS RESULTED IN A NET GAIN OF JUST 14 JOBS AMONG THOSE DEALS WAS THE 1984 PURCHASE OF AJ BAYLESS MARKETS AND THE 1986 PURCHASES OF BOYS MARKETS AND SUN CARRIERS STILL MR RIORDAN AFTER SPENDING 6 MILLION OF HIS OWN MONEY ON HIS CAMPAIGN WAS ABLE TO CONVINCE VOTERS THAT HE IS THE MAN TO SUCCEED 20YEAR INCUMBENT TOM BRADLEY AND IMPROVE THIS CITY'S FORTUNES HIS FIRST ATTEMPT TO DO JUST THAT WILL BE TO LOBBY GOV PETE WILSON TODAY TO PREVENT A PROPOSED SHIFT OF UP TO 300 MILLION IN TAX REVENUE AWAY FROM THE CITY TO THE STATE'S EDUCATION BUDGET 9306100028 930610 MARKETING BRIEF WHITTLE COMMUNICATIONS LP CALIFORNIA BILL BLOCKS SCHOOLS FROM CONTRACTS TO SHOW ADS IN A POTENTIAL SETBACK TO WHITTLE COMMUNICATIONS LP THE CALIFORNIA SENATE VOTED TO PROHIBIT SCHOOLS FROM ENTERING CONTRACTS THAT REQUIRE THE SHOWING OF COMMERCIALS IN THE CLASSROOM THE SENATE'S BILL IF APPROVED BY THE STATE ASSEMBLY AND SIGNED BY GOV PETE WILSON LATER THIS SUMMER WOULD BLOCK THE BROADCASTING IN CALIFORNIA OF WHITTLE'S COMMERCIAL NEWS PROGRAM CHANNEL ONE CHANNEL ONE HAS BEEN CONTROVERSIAL SINCE ITS INCEPTION BECAUSE THE 12MINUTE PROGRAM INCLUDES TWO MINUTES OF ADS JIM RITTS PRESIDENT OF NETWORK AFFAIRS FOR WHITTLE'S EDUCATIONAL NETWORK PLAYED DOWN THE SIGNIFICANCE OF THE SENATE'S VOTE BECAUSE AN IDENTICAL BILL WAS PASSED BY THE SENATE TWO YEARS AGO ONLY TO BE VOTED DOWN IN THE ASSEMBLY BUT CRITICS SAID THE CLIMATE IN THE ASSEMBLY IS DIFFERENT THIS YEAR BECAUSE OF WHITTLE'S PLANS TO CREATE THE EDISON PROJECT A CHAIN OF FORPROFIT SCHOOLS PEOPLE ARE ASKING HOW MUCH MONEY FROM CHANNEL ONE'S ADVERTISERS IS GOING TO BUILD THE EDISON PROJECT SCHOOLS WHICH COULD EVENTUALLY LEAD TO THE DISMANTLING OF OUR PUBLIC SCHOOLS SAID WILLIAM RUKEYSER A SPOKESMAN FOR THE STATE DEPARTMENT OF EDUCATION 9306100027 930610 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY LOURDES LEE VALERIANO SHIPS YES CARS NO AMERICANS IN EUROPE TURN PICKY TO STRETCH THE DOLLAR MORE US TOURISTS WITH A TIGHT GRIP ON THEIR WALLETS OPT FOR EUROPEAN CRUISE PACKAGES ALLINCLUSIVE PRICES THAT DON'T FLUCTUATE WITH THE DIFFERENT CURRENCIES SHIELD PASSENGERS FROM STICKER SHOCK SAYS TOM CRABB A DALLAS TRAVEL AGENT NEW DESTINATIONS LIKE TURKEY AND RUSSIA'S ST PETERSBURG ALSO ARE LURES CRUISES ACCOUNT FOR 35 OF EUROPEAN BOOKINGS FOR ZENITH TRAVEL IN NEW YORK UP FROM 20 LAST YEAR BUT FLYANDDRIVES WHICH INCLUDE AIR FARE AND CAR RENTAL ARE DOING POORLY BECAUSE OF CONCERN OVER GAS COSTS SAYS MICHELLE KAFNER OF LIBERTY TRAVEL NEW YORK CELESTE POLAK A MANHATTAN TRAVEL AGENT AGREES FRANCE THE GAS WILL KILL YOU WITH HOTELS PITCHING DISCOUNTS SOME TRAVELERS ESCHEW PACKAGES AND PUT TOGETHER THEIR OWN DEALS SHE ADDS THEY WANT TO KNOW DOWN TO THE NITTY GRITTY HOW MUCH A TRIP WILL COST ENGLAND AND SPAIN ARE POPULAR PARTLY BECAUSE THEIR CURRENCIES HAVE WEAKENED TRAVEL AGENTS SAY BABY BOTTLES THAT SPORT SODA LOGOS MAY BE CUTE BUT DENTISTS AREN'T SMILING THE SODA SERIES FROM MUNCHKIN BOTTLING INC OF VAN NUYS CALIF ARE 299 CLEAR TAPERED BABY BOTTLES WITH SODA LOGOS LIKE PEPSI DR PEPPER AND SEVENUP AS OF MAY MUNCHKIN SHIPPED ABOUT 75000 A DAY THE COMPANY IS PEPSICO'S TOP LICENSEE IN THE US SAYS NANCY HUTCHINSON OF PEPSI LICENSOR BRADFORD LICENSING ASSOCIATES BUT THE BOTTLES TROUBLE DENTISTS WORRIED ABOUT TOOTH DECAY WHICH CAN RESULT WHEN SUGARY DRINKS INCLUDING JUICE LINGER IN THE MOUTH WHILE THE BOTTLES DON'T CONTAIN SODA THEY IMPLY THAT IT'S OK TO GIVE A CHILD A SODA SAYS DR JEFFERY SMITH OF THE CALIFORNIA DENTAL ASSOCIATION THE GROUP AS WELL AS THE AMERICAN DENTAL ASSOCIATION AND THE ACADEMY OF PEDIATRIC DENTISTRY HAVE WRITTEN MUNCHKIN TO ASK IT TO PULL ITS PRODUCT BUT STEVEN DUNN MUNCHKIN'S FOUNDER RETORTS THAT THE BOTTLES CARRY AN EXPLICIT WARNING ABOUT PROPER BABY DRINKS AND ADDS THAT I THINK THE AVERAGE AMERICAN PARENT IS MORE INTELLIGENT THAN THAT MUNCHKIN NOW CONSIDERS PUTTING FOOD LOGOS ON ITS BOTTLES EFFECTIVE JUNE 21 BANKS AND THRIFTS MUST MAKE CLEAR AND UNIFORM DISCLOSURES OF RATES AND FEES ON DEPOSIT ACCOUNTS IT BARS TOUTING CHECKING ACCOUNTS AS FREE OR NO COST IF THEY HAVE PROVISOS LIKE MINIMUM BALANCE REQUIREMENTS BANKS ARE JUST AVOIDING THE WORD SAYS ROBERT FARMER A LOUISVILLE KY AD EXECUTIVE FIRST VIRGINIA BANKS IN FALLS CHURCH FOR INSTANCE DROPS THE PHRASE CHECK US OUT FOR FREE FROM ITS ADS SAFETY FUND NATIONAL BANK OF FITCHBURG MASS OPTS INSTEAD FOR THE TAG SMART CHECKING ALTHOUGH ITS ACCOUNT QUALIFIES AS FREE UNDER THE RULES SOME BANKS HOWEVER ARE CAPITALIZING ON THE NEW SCARCITY OF FREE CHECKING OFFERS TO BUILD ITS DEPOSIT BASE RUTLAND BANK IN FLORIDA NOW PUSHES A FREE ACCOUNT WITH NO MINIMUM BALANCES AND NO CHECK LIMITS BUT USERS CAN'T USE ATMS AND CHECKS AREN'T MAILED BACK NEW CHECKING PACKAGES MAY ARISE AS THE LAW PRODS BANKS TO REVIEW THEIR LINES SAYS THE BANK RATE MONITOR NEWSLETTER SILK SCREENING WHICH CAN MAKE RAISED DESIGNS ON TSHIRTS CROSSES OVER TO MATERIALS FOR THE BLIND AMERICAN PRINTING HOUSE FOR THE BLIND LOUISVILLE KY USES RAISED INK PRINTING FOR MAPS FLOOR PLANS AND SUCH UNIVERSAL BRAILLE TORONTO IS TALKING WITH FOOD COMPANIES ABOUT CREATING PRINTED RATHER THAN EMBOSSED BRAILLE LABELS A FAVORITE CHARITY MC SNACK INC SAN DIEGO JOINS A SMALL BUT GROWING GROUP OF COMPANIES DONATING A CUT OF THEIR SALES TO PAY DOWN THE NATIONAL DEBT AND GARNER SOME PUBLICITY IT STARTS A NONPROFIT ORGANIZATION CHALLENGE AMERICA NOW TO RECRUIT OTHER FIRMS TO PLEDGE A PART OF THEIR SALES FROM SEPTEMBER TO DECEMBER A TOLLFREE OFFER IS PUSHED BY FIVE MERCHANTS FROM MERCER COUNTY PA TO PROMOTE THE USE OF A NEW HIGHWAY TO THEIR COUNTY THEY PLEDGE TO REIMBURSE THROUGH LABOR DAY THE ROUNDTRIP COST OF THE TOLL ON ROUTE 60 3 FROM PITTSBURGH FOR OUTOFTOWN CUSTOMERS TRAILS TO RAILS ABANDONED CORRIDORS MAY BE RECLAIMED FOR COMMUTER LINES ACTIVISTS IN ASPEN COLO LOBBY TO RESTORE THE RAIL ON SEVEN MILES OF TRAIL CREATED WHEN TRACKS WERE REMOVED YEARS AGO NEW JERSEY PLANS TO BUY A 28MILE CORRIDOR FROM A DEVELOPER TO PRESERVE IT FOR FUTURE USE THE TRACKS WERE TORN OUT IN THE MID'80S COUNTY OFFICIALS ARE PUSHING FOR PLANS TO SPEND UP TO 28 MILLION LAYING NEW TRACKS FOR A TRAIN LINE TO EASE TRAFFIC ON A NEARBY HIGHWAY MASSACHUSETTS MEANWHILE WANTS TO RETRACK AN 87MILE STRIP NORTH OF BOSTON IT'S CHEAPER EASIER AND LESS DISRUPTIVE TO USE OLD RIGHTSOFWAY THE STRIPS OCCUPIED BY TRACKS THAN TO CREATE NEW ONES SAYS A MASSACHUSETTS BAY TRANSPORTATION AUTHORITY OFFICIAL BUT SUCH PLANS ARE MEETING PROTESTS FROM HOMEOWNERS AS WELL AS JOGGERS WHO WANT TO KEEP TRAILS CREATED FROM OLD RAIL CORRIDORS THE TRAIL IS TOO IMPORTANT AN AMENITY SAYS MARC FRIEDBERG WHO LEADS A GROUP OPPOSING THE ASPEN RAIL RESTORATION RAIL LINES RUN BY MAJOR RAILROADS FELL 27 FROM '82 TO 116000 MILES IN '91 SAYS THE ASSOCIATION OF AMERICAN RAILROADS BRIEFS ADVICE PROLIFERATES ON CATCHING RAYS PRACTICE SAFE SUN ADMONISHES THE DISPLAY WINDOW OF GRANITE SUPER DRUG IN BROOKLINE MASS THE UV BWARE SOFTWARE FROM SAVE THE PLANET SOFTWARE IN PITKIN COLO CALCULATES SAFE SUN EXPOSURE FOR UNTANNED FAIR SKIN FOR A PARTICULAR PLACE AND DAY 9306100026 930610 BUSINESS BRIEF FORD MOTOR CO TWELVE BLACK WORKERS SUE CHARGING FIRM DISCRIMINATES TWELVE AFRICANAMERICAN MANAGERS FILED A LAWSUIT AGAINST FORD MOTOR CO CHARGING THAT THE AUTO MAKER'S HIRING AND PROMOTION POLICIES DISCRIMINATE AGAINST BLACK EMPLOYEES ALL 12 MANAGERS ARE MEN EMPLOYED AT VARIOUS FORD FACILITIES IN THE US THE PLAINTIFFS WHO ARE SEEKING CLASSACTION STATUS FOR THE LAWSUIT CHARGE THAT FORD HAS ENGAGED IN A GENERAL PRACTICE OF DISCRIMINATING AGAINST BLACK PERSONS AND DENYING THEM EQUAL OPPORTUNITIES IN EMPLOYMENT BECAUSE OF THEIR RACE AND COLOR THE LAWSUIT WAS FILED IN US DISTRICT COURT IN MINNEAPOLIS FORD SAID IT HASN'T SEEN THE LAWSUIT BUT SAID IT HAS A WELLDEVELOPED AND DISCIPLINED PROCESS FOR CONSIDERING PROMOTION OPPORTUNITIES FOR ALL EMPLOYEES IN ADDITION WE HAVE A VERY AGGRESSIVE POLICY DESIGNED TO INSURE OUR EMPLOYEES ARE FREE FROM DISCRIMINATION OF ANY KIND THE SUIT ALSO CLAIMS THAT FORD HAS FAILED AND REFUSED TO RECRUIT AND HIRE BLACK PERSONS AT ALL LEVELS OF EMPLOYMENT ON AN EQUAL BASIS WITH WHITE PERSONS THE SUIT ALSO CHARGES THAT WHITE SUPERVISORS USE HIGHLY SUBJECTIVE SELECTION CRITERIA OR NONE AT ALL 9306100025 930610 BIG BOARD MEMBER FIRMS POST RECORDS FOR THE FIRST QUARTER NEW YORK NEW YORK STOCK EXCHANGE MEMBER FIRMS THAT DO BUSINESS WITH THE PUBLIC REPORTED RECORD RESULTS FOR THE FIRST QUARTER BOLSTERED BY THE FLOURISHING STOCK MARKET AND INCREASED STOCK AND BOND OFFERINGS THE BIG BOARD SAID MEMBER FIRMS REPORTED NET INCOME OF 151 BILLION UP 11 FROM A RECORD 136 BILLION A YEAR EARLIER AND FROM 773 MILLION IN THE FOURTH QUARTER OF 1992 FIRMS POSTED REVENUES OF 1775 BILLION FOR THE QUARTER UP 77 FROM THE RECORD 1648 BILLION REPORTED A YEAR EARLIER THE FIRST QUARTER'S NET GENERATED A 134 ANNUAL RETURN ON MEMBER FIRMS' AVERAGE NET WORTH OF 4508 BILLION COMPARED WITH 137 ON NET WORTH OF 3964 BILLION A YEAR EARLIER EXPENSES FOR THE FIRST QUARTER ROSE TO 1545 BILLION FROM 1442 BILLION A YEAR EARLIER OF THE 310 FIRMS REPORTING 264 WERE PROFITABLE AND REPORTED AGGREGATE PRETAX EARNINGS OF 267 BILLION THE 46 UNPROFITABLE FIRMS REPORTED AN AGGREGATE PRETAX LOSS OF 380 MILLION PRETAX PROFIT WAS 230 BILLION IN THE QUARTER UP FROM 206 BILLION A YEAR EARLIER CAPITAL ROSE TO 4663 BILLION UP FROM THE RECORD 4352 BILLION POSTED IN THE FOURTH QUARTER 1992 AND FROM 4016 BILLION A YEAR EARLIER 9306100024 930610 OTC FOCUS INDEX ADVANCES 150 POINTS TO 68924 AS MIDDAY RALLY MELTS INTO MODEST GAIN BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A MIDAFTERNOON RALLY MELTED INTO A MODEST GAIN AS THE NASDAQ MARKET GOT A MUCHNEEDED SHOT IN THE ARM FROM LOWER BOND YIELDS OVERTHECOUNTER STOCKS GAINED MOMENTUM AS MOST SECTORS MADE A MILD COMEBACK FOLLOWING THREE STRAIGHT SESSIONS OF FLACCIDITY THE NASDAQ COMPOSITE INDEX RECENTLY DREW CLOSE TO TOPPING ITS RECORD OF 70885 SET FEB 4 BEFORE FALLING BELOW THE 700 LEVEL MONDAY YESTERDAY THE BELLWETHER INDEX ADVANCED 150 POINTS OR 022 TO END AT 68924 MEANWHILE THE MARKET'S BREADTH ALSO IMPROVED WITH ADVANCING STOCKS OUTPACING DECLINERS 1421 TO 1274 THE TREASURY'S LONG BOND MOVED UP MORE THAN 3/8 POINT DEPRESSING ITS YIELD TO 688 TRADERS SAY STRONGER BONDS INSPIRED INVESTORS TO BUY STOCKS MARKET PLAYERS ARE SAID TO BE MAKING CAUTIOUS MOVES AHEAD OF TWO KEY INFLATION REPORTS DUE TOMORROW AND TUESDAY NELSON GOLD SENIOR VICE PRESIDENT OF OTC TRADING AT INTERSTATE JOHNSON/LANE CORP SAID THE ONES THAT HAD GOTTEN BOPPED LIKE THE FINANCIALS AND GAMING STOCKS FIRMED UP HE ALSO SAID FADING STRENGTH ON THE BIG BOARD IN LATE TRADING TOOK THE STEAM OUT OF THE NASDAQ MARKET ON THE NEW YORK STOCK EXCHANGE THE DOW JONES INDUSTRIAL AVERAGE EDGED UP 139 POINTS TO 351193 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX GAINED 062 POINT TO 24577 OTHER PSYCHOLOGICAL POSITIVES FOR STOCKS YESTERDAY INCLUDED A STRONGER US DOLLAR AND A LOWER GOLD PRICE RISING GOLD PRICES ARE VIEWED BY MANY AS A PRECURSOR TO INFLATION INVESTORS ALSO TOOK SOLACE FROM NEWS THAT PRESIDENT CLINTON AND TOP SENATE DEMOCRATS HAVE TENTATIVELY DECIDED TO REPLACE THE CONTROVERSIAL ENERGY TAX IN THE BUDGET DEFICITREDUCTION BILL WITH A SMALLER TAX ON TRANSPORTATION FUELS AND ELECTRICAL POWER PETER CANELO A MARKET STRATEGIST AT NATWEST SECURITIES SAID THE FAILURE TO HIT HIGHS IN MAJOR NASDAQ INDEXES THIS PAST WEEK TOOK THE ENTHUSIASM OUT OF BUYING THE STRATEGIST ADDED EITHER WE'RE SEEING PROBLEMS OR THERE'S NOT MUCH HAPPENING THE RESULT IS VERY INDIFFERENT TRADING MR CANELO THINKS THE NASDAQ COMPOSITE AND THE NASDAQ 100 INDEXES MIGHT TRY TO MEET THEIR HIGHS ONE MORE TIME IF INTEREST RATES STAY LOW BUT HE NOTED THAT MARKET PLAYERS ARE AWARE AND CONCERNED THAT THE FEDERAL RESERVE MIGHT MOVE TO TIGHTEN CREDIT AS EARLY AS THIS WEEK TOTAL NASDAQ NATIONAL MARKET SYSTEM VOLUME WAS 217450600 SHARES YESTERDAY COMPARED WITH 216569100 SHARES TUESDAY MOST OF THE TECHNOLOGY SECTOR BOUNCED BACK FROM ITS DISMAL PERFORMANCE OVER THE PREVIOUS FEW SESSIONS BUT APPLE COMPUTER WAS HIT HARD BY A DISAPPOINTING EARNINGS OUTLOOK AND SLID 5 1/4 TO 44 1/4 LEADING THE MOST ACTIVE LIST THE CUPERTINO CALIF COMPUTER COMPANY SAID IT EXPECTS EARNINGS FOR THE SECOND HALF OF THE CURRENT YEAR TO BE BELOW THE 188 A SHARE REPORTED FOR THE YEARAGO PERIOD AND LOWER THAN ITS PREVIOUS EXPECTATIONS WESSELS ARNOLD & HENDERSON UPGRADED SAUSALITO CALIFBASED AUTODESK TO BUY FROM HOLD THE SHARES ROSE 2 1/4 TO 52 1/4 ADOBE SYSTEMS GAINED 4 1/8 TO 68 3/4 HAMBRECHT & QUIST ANALYST BRUCE LUPATKIN REITERATED A BUY RECOMMENDATION ON THE MOUNTAIN VIEW CALIF SOFTWARE MAKER LATE TUESDAY MR LUPATKIN ALSO ATTEMPTED TO QUASH RUMORS THAT THE COMPANY'S FISCAL SECONDQUARTER RESULTS WOULD FALL SHORT OF EXPECTIONS OTHER GAINERS INCLUDED SYNOPSYS WHICH JUMPED 1 1/4 TO 39 1/4 BMC SOFTWARE WHICH ADVANCED 2 TO 50 3/4 AND NOVELL WHICH GAINED 3/4 TO 27 3/4 AMONG INTERESTRATE SENSITIVE ISSUES MULTIBANK FINANCIAL OF DEDHAM MASS SWELLED 4 TO 24 1/4 FOLLOWING NEWS THAT THE FEDERAL RESERVE BOARD HAS CONDITIONALLY APPROVED THE APPLICATION OF BANK OF BOSTON TO ACQUIRE MULTIBANK AND ITS SUBSIDIARIES ON THE BIG BOARD BANK OF BOSTON CLIMBED 3/8 TO 22 3/8 THE BOARD ALSO CONDITIONALLY APPROVED BANK OF BOSTON'S APPLICATION TO ACQUIRE HARTFORD CONNBASED SOCIETY FOR SAVINGS BANCORP AND ITS BANK SUBSIDIARY SOCIETY FOR SAVINGS CLIMBED 1 1/4 TO 17 3/8 OTHER BANK FINANCIAL AND INSURANCE STOCKS WERE MIXED BANK OF NEW HAMPSHIRE ROSE 1 TO 16 AND CORESTATES FINANCIAL GAINED 1 TO 52 1/8 BUT INTERCONTINENTAL BANK DROPPED 1 1/2 TO 15 AGOURON PHARMACEUTICALS OF SAN DIEGO GOT A ONEPOINT BOOST TO 9 1/2 AFTER SAYING IT HAS FORMED AN ALLIANCE WITH SYNTEX CORP FOCUSING ON DISCOVERING DRUGS TO TREAT ARTHRITIC DISEASES AND INVASIVE MALIGNANT TUMORS AMONG OTHER AILMENTS SYNTEX ADDED 1/8 TO 18 7/8 ON THE BIG BOARD AT THE OTHER EXTREME IMMUNE RESPONSE OF CARLSBAD CALIF SHED 5 5/8 TO 16 IN ACTIVE TRADING SOME INVESTORS APPARENTLY VIEWED AS DISAPPOINTING THE RESULTS BY THE COMPANY'S JOINT VENTURE WITH RHONEPOULENC RORER INC OF A PHASE II/III CLINICAL TRIAL OF AN HIV1 IMMUNOTHERAPEUTIC VACCINE RHONEPOULENC RORER EASED 1/4 TO 51 ON THE BIG BOARD NEW ISSUE SUNGLASS HUT CLOSED AT 24 1/4 ON HEAVY VOLUME WELL ABOVE ITS 20 OFFERING PRICE THE MIAMI SUNGLASSES COMPANY EXPECTS TO USE PROCEEDS TO PAY DEBT AND REDEEM PREFERRED STOCK IN THE VOLATILE GAMING GROUP CASINO MAGIC REBOUNDED 3 5/8 TO 67 1/2 AFTER BEING CAUGHT IN THE CASINO SELLOFF TUESDAY THE BAY ST LOUIS MISSBASED COMPANY SAID IT WAS HOPING THE NEW YORK LEGISLATURE WOULD LEGALIZE GAMBLING IN THE STATE TO ENABLE IT TO PROCEED WITH PLANS FOR A RIVERBOAT CASINO ON THE BUFFALO NY WATERFRONT 9306100023 930610 BUSINESS BRIEF LIFETIME PRODUCTS INC MARKETER SELLS TWO UNITS IN MOVE THAT REDUCES DEBT LIFETIME PRODUCTS INC ONCE A HIGHFLYING MARKETER OF TRIPLEEDGED WINDSHIELD WIPERS SAID IT SOLD TWO SUBSIDIARIES LEAVING THE DALLAS COMPANY ONLY WITH A UNIT THAT MARKETS PRODUCTS SUCH AS CAMCORDERS AND SEWING MACHINES THROUGH CREDITCARD INSERTS COMPANY OFFICIALS WOULDN'T DISCLOSE THE BUYER OR THE PRICE FOR LIFETIME AUTOMOTIVE INC AND LIFETIME COSMETICS INC HOWEVER DON RUTLEDGE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER SAID THE TRANSACTION WILL RESULT IN A 13 MILLION ONETIME NONCASH GAIN AND WILL REDUCE THE COMPANY'S DEBT BY ABOUT 17 MILLION UNDER TERMS OF THE TRANSACTION LIFETIME PRODUCTS EXCHANGED THE STOCK OF THE TWO SUBSIDIARIES FOR RELEASE FROM GUARANTEES OF THE SUBSIDIARIES' SECURED DEBT AND VARIOUS OTHER GUARANTEED OBLIGATIONS IN ADDITION LIFETIME RECEIVED AN UNDISCLOSED AMOUNT OF CASH AND PROMISES OF FUTURE CONTINGENT ROYALITES LIFETIME SAID THE DISPOSED SUBSIDIARIES ACCOUNTED FOR ABOUT 19 MILLION OF LIFETIME PRODUCTS' 1992 LOSS OF 222 MILLION OR 541 A SHARE EARLIER THIS YEAR LIFETIME WHICH ONCE TRADED AS HIGH AS 14 A SHARE SOLD THE MANUFACTURING AND NORTH AMERICAN RETAIL RIGHTS FOR ITS WINDSHIELD WIPERS TO DIRECT TO RETAIL LP IN COMPOSITE TRADING ON THE AMERICAN STOCK EXCHANGE YESTERDAY LIFETIME CLOSED AT 625 CENTS DOWN 625 CENTS 9306100022 930610 WHO'S NEWS PFIZER RESEARCH HEAD BLOOM WILL RETIRE CAUSING SOME SHIFTS NEW YORK PFIZER INC ANNOUNCED THE RETIREMENT OF BARRY M BLOOM 64 YEARS OLD THE EXECUTIVE VICE PRESIDENT WHO IN THE EARLY 1980S HELPED TURN THE COMPANY'S STRUGGLING RESEARCH OPERATION INTO ONE OF THE MOST PRODUCTIVE IN THE INDUSTRY DR BLOOM'S RETIREMENT FROM THE COMPANY AND ITS BOARD SEPT 1 WILL TRIGGER A STRING OF EXECUTIVE SHIFTS IN THE RESEARCH OPERATION BASED IN GROTON CONN JOHN F NIBLACK 54 CURRENTLY PRESIDENT OF PFIZER CENTRAL RESEARCH WILL SUCCEED DR BLOOM AS EXECUTIVE VICE PRESIDENT GEORGE M MILNE JR 49 WILL BECOME PRESIDENT OF CENTRAL RESEARCH AND CRAIG SAXTON 50 HAS BEEN PROMOTED TO EXECUTIVE VICE PRESIDENT OF CENTRAL RESEARCH DR BLOOM WHO JOINED PFIZER IN 1952 AS A RESEARCH CHEMIST HAS RUN THE RESEARCH OPERATION SINCE 1971 THE COMPANY WENT THROUGH A DRY PERIOD IN RESEARCH DURING THE EARLY 1980S BUT HAS SINCE DEVELOPED A PRODUCT PIPELINE VIEWED AS ONE OF THE RICHEST IN THE INDUSTRY LAST YEAR THE COMPANY INTRODUCED THREE NEW DRUGS ANTIDEPRESSANT ZOLOFT ANTIBIOTIC ZITHROMAX AND HEART DRUG NORVASC THE COMPANY IS EXPECTED TO FILE AN APPLICATION THIS YEAR FOR GOVERNMENT APPROVAL OF TENIDAP A PROMISING ARTHRITIS TREATMENT DRS NIBLACK AND MILNE BOTH TRAINED IN CHEMISTRY HAVE BEEN RUNNING THE DAYTODAY OPERATIONS OF THE RESEARCH AND DEVELOPMENT ORGANIZATION SINCE ABOUT 1990 A SPOKESMAN SAID WITH A BUDGET OF 1 BILLION THIS YEAR THE PFIZER RESEARCH OPERATION EMPLOYS ABOUT 4000 SCIENTISTS AND MEDICAL PERSONNEL 9306100021 930610 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 LOW 2 1/2 NEAR CLOSING BID 2 1/2 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 239 DAYS 340 240 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 321 30 DAYS 325 60 DAYS 329 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 315 ONE MONTH 327 THREE MONTHS 344 SIX MONTHS BANKERS ACCEPTANCES 311 30 DAYS 316 60 DAYS 320 90 DAYS 326 120 DAYS 330 150 DAYS 335 180 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 737 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 725 60 DAYS 735 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 9306100020 930610 INTERNATIONAL PARIS AIR SHOW REFLECTING DOWNTURN IN AEROSPACE INDUSTRY WILL BE LEANER BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL PARIS HOTEL MANAGERS IN PARIS HAVE LEARNED ALL TOO PAINFULLY WHAT PARTICIPANTS GATHERING FOR THE PARIS AIR SHOW HAVE KNOWN FOR A LONG TIME AN INTERNATIONAL DOWNTURN HAS CLIPPED THE AEROSPACE INDUSTRY'S WINGS AND THAT MEANS AMONG OTHER THINGS A LEANER AIR SHOW ORGANIZERS OF THE BIENNIAL EVENT WHICH GETS UNDER WAY TODAY SAY THERE WILL BE 10 FEWER EXHIBITORS HAN AT THE LAST SHOW IN 1991 AND COMPANIES THAT ARE ATTENDING SAY THEY WILL BRING FAR FEWER STAFF FOR THEIR STANDS REPORTS THAT THE FRENCH PLANNED TO STEAL INDUSTRIAL SECRETS FROM FOREIGN MANUFACTURERS HAVE DOGGED THE SHOW'S ORGANIZERS AND LED IN PART TO THE DISMISSAL OF THE NATION'S INTELLIGENCE CHIEF THE CONTROVERSY CONTRIBUTED TO THE DECISION BY HUGHES AIRCRAFT CO A UNIT OF GENERAL MOTORS CORP TO STAY AWAY FROM WHAT IS CONSIDERED THE WORLD'S PREMIER AEROSPACE EVENT THE SPY STORIES HOWEVER ARE A SIDESHOW TO THE MAIN EVENT THE INDUSTRY'S WORST PERFORMANCE IN MORE THAN A DECADE GOVERNMENTS ARE SLASHING MILITARY BUDGETS AND TOUGH TIMES IN THE AIRLINE INDUSTRY ARE FORCING CARRIERS TO REDUCE THEIR ORDER BOOKS JUST YESTERDAY THAI AIRWAYS CO SAID IT WAS CANCELING ORDERS FOR SEVEN PLANES VALUED AT 600 MILLION AS THEY CRAM LE BOURGET AIRFIELD OUTSIDE OF PARIS INDUSTRY OFFICIALS WILL BE LOOKING FOR SIGNS OF LIFE FEW EXPECT TO FIND ANY IS THERE A PULSE AT ALL ASKED RICHARD TURNER GROUP MARKETING DIRECTOR FOR UK ENGINE MAKER ROLLSROYCE PLC SOME REASONS FOR ENCOURAGEMENT EXIST SINCE THE BEGINNING OF THE YEAR CHINA HAS GONE ON AN AIRCRAFT BUYING SPREE NOW ACCOUNTING FOR ONE IN SEVEN BOEING CO PLANES PRODUCED AND HALF OF THE AIRBUS INDUSTRIE ORDERS ANNOUNCED THIS YEAR AIRCRAFT LEASING GIANT GPA GROUP PLC APPEARS CLOSE TO A DEAL THAT WILL KEEP IT OUT OF THE BANKRUPTCY COURTS AND BOEING AND THE FOUR AIRBUS PARTNERS ARE BUSY EXAMINING JOINTLY AND ON THEIR OWN THE POTENTIAL FOR A SUPERJUMBO AIRCRAFT CAPABLE OF CARRYING AS MANY AS 800 PASSENGERS INDEED BOEING AND AIRBUS'S GERMAN PARTNER ARE EXPECTED TO ANNOUNCE TODAY AT THE AIR SHOW THAT THEY ANTICIPATE DEMAND FOR 500 OF THE NEXTGENERATION SUPERJUMBOS BY THE YEAR 2010 EVEN THE PESSIMISTS STILL BELIEVE THAT BY EARLY IN THE NEXT CENTURY THE INDUSTRY WILL EXPERIENCE BOOMING DEMAND BUT MOST INDUSTRY ANALYSTS AND OFFICIALS TALK ABOUT RECOVERY BEING A LONG WAY OFF FOR CIVIL AEROSPACE THE RECOVERY WILL NOT BE BEFORE 1995 SAID AEROSPATIALE CHAIRMAN LOUIS GALLOIS FOR MILITARY THE EUROPEAN MARKET WILL BE BAD IF NOT WORSE IN THE NEAR FUTURE THE OVERRIDING GLOOM MARKS A SHARP CONTRAST TO THE 1991 AIR SHOW HELD IN THE WAKE OF THE PERSIAN GULF WAR THE SHOW GAVE THE US AND ITS MILITARY CONTRACTORS A CHANCE TO DISPLAY THEIR WINNING MERCHANDISE CIVILIAN MANUFACTURERS EAGERLY PREPARED FOR WHAT THEY WERE CONVINCED WOULD BE A RECOVERY ONCE TRAVELERS SCARED BY THE WAR RETURNED TO THE SKIES THAT DIDN'T HAPPEN IN FACT MANY ANALYSTS TRACE THE INDUSTRY'S PROBLEMS TO THAT YEAR WHEN AIRLINES TOOK DELIVERY OF MORE THAN 800 NEW PLANES BUT PASSENGER TRAFFIC FELL MORE THAN 4 THE FIRST DROP SINCE WORLD WAR II THE RESULTING OVERCAPACITY SENT AIRLINE PROFITABILITY PLUMMETING LEADING TO CANCELLATIONS AND DELAYS OF AIRCRAFT ORDERS EVEN SOME BANKRUPTCIES WITH MOST COMPANIES LAYING OFF WORKERS AND TRIMMING FAT ATTENTION TO COSTS IS A BIG FACTOR AT LE BOURGET WHERE COMPANIES TYPICALLY SPEND MORE THAN 750000 FOR THE 10DAY EVENT BOEING WHICH IS SHEDDING 20 OF ITS WORK FORCE SAID IT IS BRINGING 40 FEWER PEOPLE AND WILL SKIP THE FIRST THREE DAYS OF THE SHOW AIRBUS MEANWHILE NO LONGER PLANS TO HOST A GALA RECEPTION AT A PARIS MUSEUM EVEN HUGHES WHICH CAUSED A STIR BY PULLING OUT OF THE SHOW AMID ACCUSATIONS OF FRENCH ESPIONAGE SAYS COSTS WEIGHED FAR HEAVIER ON ITS MIND IN MAKING THE DECISION NOT TO PARTICIPATE THE MARKET WAS JUST NOT THERE TO JUSTIFY THE EXPENSE A HUGHES SPOKESMAN SAID HE POINTED OUT THAT THE COST ALSO KEPT HUGHES AWAY FROM THE 1991 SHOW GENERALLY COMPANIES ARE LOOKING FOR WAYS TO REALIGN THEMSELVES YESTERDAY FOR INSTANCE DICK EVANS CHAIRMAN OF BRITISH AEROSPACE PLC ONE OF THE FOUR COMPANIES IN THE AIRBUS CONSORTIUM SAID THAT POOLING THE AIRBUSRELATED ASSETS OF THE CONSORTIUM'S PARTNERS IS NECESSARY IF EUROPE IS TO FACE UP TO COMPETITION FROM BOEING AND OTHER MANUFACTURERS IN COMING YEARS THE IDEA WAS DISMISSED BY MR GALLOIS OF AEROSPATIALE WHICH ALONG WITH DAIMLERBENZ AG'S DEUTSCHE AEROSPACE AG UNIT AND CONSTRUCCIONES AERONAUTICAS SA OF SPAIN IS ANOTHER AIRBUS MEMBER EXHIBITORS ALSO ARE PUTTING FAITH IN THE BRIGHT SPOTS PARTICULARLY CHINA WHICH IS RUSHING TO MEET PENTUP TRAVEL DEMAND FROM ITS CITIZENS CHINA SAID PETE DEIGHTON AN AEROSPACE ANALYST AT SMITH NEW COURT SECURITIES LTD IS GOING TO BE COURTED BY EVERYONE THERE 9306100019 930610 SOME PEOPLE THINK GOOD FENCES MIGHT NOT MAKE GOOD NEIGHBORS BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL EVANSTON ILL ROBERT FROST HAD IT RIGHT SOMETHING THERE IS THAT DOESN'T LOVE A WALL THAT'S TRUE ENOUGH HERE A LOT OF PEOPLE DON'T LOVE THE NEW WALL THAT NOW SEPARATES THEIR SUBURB FROM CHICAGO THE BARRIER A THREEBLOCKLONG GUARDRAIL HASTILY ERECTED LATE LAST MONTH IS A BIZARRE THRUST IN A FENCING MATCH BETWEEN THE BIG CITY AND ITS SUBURB OVER ECONOMIC DEVELOPMENT EVANSTON THIS SPRING EMBRACED PLANS TO RAZE AN OLD INDUSTRIAL BUILDING NEAR ITS CHICAGO BORDER TO BUILD A SHOPPING MALL IT EXPECTS 600 NEW JOBS AND MILLIONS IN SALESTAX REVENUE BUT WHAT WOULD CHICAGO GET NOTHING BUT NUISANCE TRAFFIC POURING FROM THE MALL INTO NEIGHBORING STREETS PREDICTS ALDERMAN BERNARD STONE SO HE PERSUADED CHICAGO TO INSTALL WHAT LOCALS CALL BERNIE'S WALL ON THE MEDIAN OF HOWARD STREET ALONG THE CITIES' BORDER AT 2 1/2 FEET HIGH AND RUNNING EAST FROM THE MALL SITE'S ENTRANCE FOR THREE BLOCKS IT PREVENTS LEFT TURNS INTO LOCAL STREETS EVANSTON MAYOR LORRAINE MORTON ARGUING THAT THE BARRIER REPRESENTS HUMANITY AT ITS WORST SAYS WE ARE IN THIS WORLD TOGETHER AND WE SHOULD NOT BE DEVISING STRUCTURES TO SEPARATE US WE SHOULD BE DEVISING MEANS TO BRING US TOGETHER BUT THE TRAFFIC MAYOR MORTON HOPES THERE WILL BE A LOT EVANSTON LOST A LAWSUIT TO BLOCK THE WALL'S ERECTION AND IS NOW SUING AGAIN TO HAVE IT REMOVED ALDERMAN STONE CONTENDS THAT THE WALL WILL PROTECT PROPERTY VALUES IF I POUR TRAFFIC FROM THE MALL'S 1400CAR PARKING LOT INTO CHICAGO IS THERE ANY DOUBT IN ANYBODY'S MIND THAT HOMES WILL BE DEPRECIATED HE ESTIMATES THAT TRAFFIC WOULD COST 900 NEARBY HOMEOWNERS 1000 EACH IN LOST VALUE IF I CAN SPEND 150000 TO SAVE 900000 THAT ISN'T BAD HE ADDS THAT HE'S WILLING TO NEGOTIATE BUT ONLY IF EVANSTON AGREES TO REIMBURSE CHICAGO FOR THE 150000 THE WALL COST TO ERECT PLUS PAY FOR ITS REMOVAL MAYOR MORTON'S REPLY PREPOSTEROUS MEANWHILE RESIDENTS HAVE BEEN POSTING ARTISTIC SENTIMENTS ABOUT THE BARRIER RANGING FROM STONE COUNTRY IMPEACH STONE AND WE'VE BEEN STONEWALLED TO A WALL LOVER'S BUILD IT HIGHER CRITICS ON BOTH SIDES OF THE FENCE DECRY ITS COST TO CASHSTRAPPED CHICAGO THEY ALSO NOTE THAT IT LACKS OPENINGS FOR EMERGENCY VEHICLES OR PEDESTRIANS BUT IT'S ALL SOMEWHAT PREMATURE THE MALL ISN'T SCHEDULED TO OPEN FOR TWO YEARS 9306100018 930610 INTERNATIONAL EUROPE'S TELECOM MONOPOLIES TRANSFORM NEW RIVALS AND TECHNOLOGY SPUR FIGHT FOR CUSTOMERS BY BOB HAGERTY STAFF REPORTER OF THE WALL STREET JOURNAL LONDON SURROUNDED BY COMPUTERS AND COILS OF FIBEROPTIC CABLE IN THE NETWORK CONTROL CENTER OF LEHMAN BROTHERS INTERNATIONAL SHAUN O'BYRNE RESEMBLES A KID IN A CANDY STORE INTERNATIONAL TELEPHONE COMPANIES ARE LINING UP TO HELP MR O'BYRNE SHUTTLE STOCKPRICE DATA AND BROKERS' MESSAGES OVER PRIVATE CIRCUITS LINKING LEHMAN'S 10 EUROPEAN OFFICES WE'RE LOOKING AT ALL SORTS OF WONDERFUL OFFERINGS SAYS THE 50YEAROLD LONDONER WHO HEADS TECHNICAL SERVICES IN EUROPE FOR THE USBASED INVESTMENT BANK A UNIT OF AMERICAN EXPRESS CO IT'S NEVER BEEN SUCH A GOOD TIME TO BE A TELECOMMUNICATIONS USER MR O'BYRNE IS SO BUSY PLAYING ONE SUPPLIER AGAINST ANOTHER THAT HE BARELY SPARES A THOUGHT FOR THE EUROPEAN COMMUNITY'S PROPOSAL TO INJECT MORE COMPETITION INTO THE MARKET WHEN TELECOMMUNICATIONS MINISTERS FROM THE 12 EC MEMBER NATIONS MEET WEDNESDAY TO SEEK A GENERAL ACCORD ON THE PROPOSAL MR O'BYRNE FIGURES THEIR DELIBERATIONS WILL BE LARGELY IRRELEVANT OF COURSE EC OFFICIALS DON'T SEE IT THAT WAY THEY WANT TO CHOREOGRAPH AN ORDERLY FIVEYEAR TRANSITION TO OPEN MARKETS FOR PHONE SERVICES FROM THE SYSTEM OF ALLOWING NATIONAL COMMUNICATIONS MONOPOLIES TO DOMINATE AND SUPPRESS COMPETITION BUT MARKET FORCES AND NEW TECHNOLOGY FAR MORE THAN EUROPE'S BUREAUCRATS ARE SETTING THE PACE AS THE TELECOM INDUSTRY TRANSFORMS ITSELF EUROPE'S ONCEARROGANT PHONE MONOPOLIES STILL QUAINTLY KNOWN AS PTTS TO REFLECT THEIR HERITAGE IN POSTAL TELEPHONE AND TELEGRAPH SERVICES ARE RUNNING SCARED THEIR FORTRESS OF PROTECTIVE REGULATION IS CRUMBLING AS A SURPRISING ARRAY OF NEW RIVALS INFILTRATE THE MARKET WITH SNAZZIER SERVICES AND LOWER PRICES THE WORLD'S MORE AGGRESSIVE PHONE COMPANIES ARE CHARGING INTO INTERNATIONAL ALLIANCES AND SHOUTING ABOUT TAILORMADE SERVICES FOR MULTINATIONAL CLIENTS BRITISH TELECOMMUNICATIONS PLC THIS MONTH ANNOUNCED PLANS TO SPEND 43 BILLION TO FORM AN ALLIANCE WITH MCI COMMUNICATIONS INC OF THE US A WEEK EARLIER AMERICAN TELEPHONE & TELEGRAPH CO TRUMPETED A BROAD ASIAN ALLIANCE AND SAID IT WAS SEARCHING FOR PARTNERS IN EUROPE THESE MANEUVERS HAVE JOLTED EUROPE'S PTTS THEY'RE WAKING UP TO THE FACT THAT THEY BETTER START BEING COMPETITIVE WITH THEIR BEST CUSTOMERS SAYS DICK SMITH SENIOR VICE PRESIDENT INFORMATION TECHNOLOGY AT HOLIDAY INN WORLDWIDE THE HOTEL DIVISION OF BRITAIN'S BASS PLC LEHMAN'S MR O'BYRNE IS PARTICULARLY STRUCK BY A MORE FLEXIBLE ATTITUDE AT FRANCE TELECOM SA THE FRENCH WERE VERY KEEN TO DO ANYTHING HE SAYS OF HIS LAST MEETING WITH THE STATEOWNED PHONE COMPANY WE LIKE WORKING WITH PEOPLE LIKE THAT AT LEAST FOR THE NEXT FEW YEARS THE PTTS CAN RELY ON THEIR DOMESTIC MONOPOLIES FOR BASIC PHONE SERVICES WHICH ACCOUNT FOR AROUND THREEQUARTERS OF REVENUE IN THE MARKET BUT IN THE PAST FEW YEARS EC COUNTRIES HAVE ALLOWED OUTSIDERS TO COMPETE IN SOME OF THE MOST LUCRATIVE SECTORS INCLUDING DATA TRANSMISSION LEASED PHONE LINES AND SUCH SERVICES AS VIDEO CONFERENCES AND INFORMATION LINES THAT HAS GIVEN OUTSIDERS A CHANCE TO POACH HIGHVOLUME BUSINESS CUSTOMERS FROM THE PTTS IT ALSO IS INDUCING THE PTTS TO COMPETE AGAINST ONE ANOTHER DESTROYING WHAT WAS ONCE A COMMON FRONT IN RESISTING REGULATORY CHANGE ONE RESULT IS THAT THE COST OF LEASED LINES IN EUROPE HAS FALLEN AN AVERAGE OF 15 OVER THE PAST TWO YEARS ESTIMATES ANNE CAMERON AN ANALYST AT LONDONBASED TARIFICA/INTELIDATA AMONG THE MOST AGGRESSIVE CROSSBORDER COMPETITORS IN EUROPE ARE BRITISH TELECOM AND CABLE & WIRELESS PLC BOTH BASED IN LONDON THEY ARE PRIMED FOR COMPETITION PARTLY BECAUSE BRITAIN FOLLOWED THE US EXAMPLE AND OPENED ITS PHONE MARKET TO COMPETITION IN THE MID1980S FAR AHEAD OF OTHER EC COUNTRIES AT&T MCI AND OTHER US COMPANIES ALSO ARE IMPLANTING IN EUROPE HOLIDAY INN CHOSE MCI TO SET UP A SATELLITE NETWORK TO MOVE DATA AROUND EUROPE NEW EUROPEAN COMPETITORS ARE ENTERING THE FRAY TOO AMONG THEM ARE TC WORLDCOM AG BASED IN SWITZERLAND AND UNISOURCE A JOINT VENTURE BY TELEVERKET OF SWEDEN AND PTT TELECOM NETHERLANDS THEN THERE ARE A DOZEN OR SO SMALL US COMMUNICATIONS CONCERNS OFFERING A NOVEL WAY TO BYPASS THE PTTS THE EUROPEAN CUSTOMER DIALS A CODE GETS A US DIAL TONE AND THEN MAKES AN INTERNATIONAL CALL AT AMERICAN RATES A TRICK THAT ALLOWS BIG SAVINGS IN SOME CASES EVEN FOR DOMESTIC CALLS SOPHISTICATED USERS CAN SOMETIMES SEND PHONE TRAFFIC ON LONG DETOURS THAT EVADE THE PTTS BECAUSE DEUTSCHE TELEKOM KEEPS LEASED PHONELINE COSTS RELATIVELY HIGH LEHMAN BROTHERS CAN SAVE MONEY BY ROUTING CALLS BETWEEN ITS HAMBURG AND FRANKFURT OFFICES VIA LONDON THE HUB OF ITS EUROPEAN COMMUNICATIONS NETWORK THERE ALSO IS SUBTLER PRESSURE ON THE PTTS TECHNOLOGY IS MAKING IT EASIER FOR CUSTOMERS TO CHEAT ON THEM ONE TRICK IS TO EXTEND THE REACH OF A PRIVATE NETWORK A COMPANY THAT LEASES PHONE LINES CONNECTING SAY OFFICES IN PHILADELPHIA AND ANTWERP MIGHT WANT TO LET AMERICAN EXECUTIVES CALL BELGIAN COLLEAGUES AT HOME TO DO THAT CHEAPLY THE COMPANY'S TECHNICIANS COULD SURREPTITIOUSLY HOOK THEIR END OF THE LEASED LINE TO THE PUBLIC PHONE SYSTEM IN ANTWERP THAT WAY A TRANSATLANTIC CALL REACHING OUTSIDE THE COMPANY'S PRIVATE NETWORK COULD BE MADE FOR THE PRICE OF A LOCAL CALL SUCH A CONNECTION IS FORBIDDEN BY BELGIAN PHONE AUTHORITIES BUT DETECTION CAN BE DIFFICULT HE DOESN'T RECOMMEND BREAKING THE RULES BUT GEORGE MCKENDRICK EXECUTIVE DIRECTOR OF A LONDONBASED TELECOM USERS GROUP SAYS CHEATING WILL PROLIFERATE AS LONG AS REGULATORS TRY TO STIFLE COMPETITION THERE WILL BE NO WAY FOR THEM TO PREVENT COMPANIES FROM DOING WHAT TECHNOLOGY ALLOWS THEM TO DO HE SAYS 9306100017 930610 WHO'S NEWS AETNA LIFE & CASUALTY CO AETNA LIFE & CASUALTY CO HARTFORD CONN THOMAS M O'NEILL 41 YEARS OLD WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS INSURER'S NEWLY CREATED INVESTMENT MANAGEMENT GROUP EFFECTIVE JULY 1 MR O'NEILL HAD BEEN A GENERAL PARTNER OF HELLMAN JORDAN MANAGEMENT CO A BOSTON INVESTMENT ADVISER WITH 28 BILLION IN ASSETS UNDER MANAGEMENT 9306100016 930610 PEPPERAND SALT ARE IN MOST CASES REMARKABLY ASTUTE MORE JURIES AREN'T HUNG WHY AIR POLLUTION SOARS NOW SNEAK THEIR PUFFS OUTDOORS I SOW IT I GROW IT I MOW IT I THROW IT 9306100015 930610 WEDNESDAY'S MARKETS REMARKS ON INFLATION RALLY BONDS RUBIN REASSURANCES HELP TO BUOY MARKET STOCKS DOLLAR GAIN BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL BONDS RALLIED ON SOOTHING WORDS ABOUT INFLATION AND GROWING SIGNS OF BUDGET RECONCILIATION IN WASHINGTON STOCKS AND THE DOLLAR EDGED UP THE DOW JONES INDUSTRIAL AVERAGE ADDED 139 POINTS TO 351193 STANDARD & POOR'S 500STOCK INDEX GAINED 107 POINTS TO 44578 AND THE NASDAQ COMPOSITE INDEX ROSE 150 POINTS TO 68924 ALL THREE BENCHMARKS WERE HIGHER AT MIDDAY BUT RETREATED TOWARD THE CLOSE THE TREASURY'S BENCHMARK 30YEAR BOND ADVANCED MORE THAN THREEEIGHTHS OF A POINT OR OVER 375 FOR EACH 1000 FACE AMOUNT RECOUPING PART OF TUESDAY'S LOSS ANALYSTS SAID BOND PRICES WERE HELPED BY COMMENTS FROM WHITE HOUSE NATIONAL ECONOMIC COUNCIL CHAIRMAN ROBERT RUBIN THE FORMER GOLDMAN SACHS COCHAIRMAN SAID THE SOMEWHAT TROUBLING INFLATION DATA OF LATE MAY BE AN ABERRATION NOBODY I HAVE SPOKEN TO IN THE PRIVATE OR PUBLIC SECTOR HAS A GOOD EXPLANATION FOR WHY THESE INFLATION NUMBERS HAVE BEEN RISING MR RUBIN TOLD AN AMERICAN STOCK EXCHANGE GROUP IN WASHINGTON IT CERTAINLY IS NOT EXCESS DEMAND HE ADDED BECAUSE ALL OVER THE DEVELOPED WORLD THERE IS EXCESS CAPACITY BONDS WERE ALSO BUOYED BY REPORTS THAT PRESIDENT CLINTON AND SENATE DEMOCRATS ARE WORKING ON REPLACING SOME PROPOSED TAX INCREASES INCLUDING LEVIES ON ENERGY WITH SPENDING CUTS DONALD FINE CHIEF MARKET ANALYST AT CHASE MANHATTAN BANK CAUTIONED AGAINST READING TOO MUCH INTO YESTERDAY'S BOND TRADING HE NOTED THAT VOLUME WAS VERY THIN AND MOST INVESTORS ARE STILL MARKING TIME UNTIL TOMORROW'S INFLATION REPORT WHICH HE EXPECTS WILL SHOW A 01 GAIN IN PRODUCER PRICES LAST MONTH WHILE MOST PEOPLE I KNOW ARE LOOKING FOR AN ABATEMENT IN INFLATION THERE'S ENOUGH UNCERTAINTY ABOUT THESE NUMBERS TO KEEP A LOT OF PEOPLE CLOSE TO HOME HE SAID WORLDWIDE STOCK PRICES ADVANCED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 021 TO 10749 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2424 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1038 ISSUES ADVANCED AND 887 DECLINED BOND PRICES ADVANCED THE YIELD ON THE TREASURY'S 30YEAR BENCHMARK ISSUE FELL TO 688 FROM 691 TUESDAY THE DOLLAR WAS HIGHER IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 16350 MARKS AND 10645 YEN COMPARED WITH 16245 MARKS AND 10640 YEN TUESDAY 9306100014 930610 SCECORP'S MISSION SUBSIDIARIES ROSEMEAD CALIF SCECORP'S MISSION POWER ENGINEERING CO AND MISSION POWER GROUP SUBSIDIARIES SAID THEY HAVE AGREED WITH CALIFORNIA ENERGY CO OMAHA NEB AND ITS PARTNERS TO SETTLE LAWSUITS STEMMING FROM THE COSO GEOTHERMAL PROJECT IN CALIFORNIA THE AGREEMENT CALLS FOR CALIFORNIA ENERGY AND THE COSO PARTNERSHIPS TO PAY 20 MILLION TO THE MISSION PARTIES BUT OTHER TERMS WEREN'T DISCLOSED SCECORP SAID THE DISPUTE OVER CONSTRUCTION COSTS GOES BACK TO 1990 9306100013 930610 DEMOCRATS LEAN TOWARD RAISING GASOLINE TAX SENATORS AIMING TO REPLACE ENERGY TAX PLAN LOOK TO TRANSPORTATION FUELS BY JACKIE CALMES AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON DEMOCRATIC SENATE LEADERS SCURRYING TO REPLACE PRESIDENT CLINTON'S PROPOSED ENERGY TAX TENTATIVELY AGREED TO RAISE THE TAX ON GASOLINE AND OTHER TRANSPORTATION FUELS BY ABOUT NINE CENTS A GALLON THE WHITE HOUSE IS DOING WHAT IT DEEMS NECESSARY TO PICK UP VOTES FROM MODERATE AND CONSERVATIVE DEMOCRATS IN THE SENATE BUT IT IS ALSO STRUGGLING TO AVOID ALIENATING LIBERALS AND ENERGYSTATE LAWMAKERS WHO SUPPORTED THE PRESIDENT'S DEFICITREDUCTION PLAN WHEN IT PASSED 219213 IN THE HOUSE SO WHILE ADMINISTRATION OFFICIALS ARE WORKING BEHIND CLOSED DOORS WITH SENATE LEADERS AND FINANCE COMMITTEE DEMOCRATS TO GET A BILL THROUGH THE SENATE WHITE HOUSE BUDGET DIRECTOR LEON PANETTA TOLD REPORTERS LAST NIGHT THAT NOT EVERY MOVE THEY THE SENATE DEMOCRATS MAKE IS ENDORSED NECESSARILY BY THE ADMINISTRATION THE PRESIDENT SAID HE HADN'T SIGNED OFF ON ANY CHANGES AND AIDES SAID HE WON'T MAKE A DECISION UNTIL IT'S CLEARER WHAT THE SENATE BILL LOOKS LIKE WE HAVE NOT AGREED TO ANYTHING OR DISAGREED WITH ANYTHING WE HAVE BEEN IN CONSULTATION WITH THE SENATE BUT THEY'RE GOING TO HAVE TO COME UP WITH THEIR OWN PROGRAM AND THEY KNOW WHAT THE PRINCIPLES I HAVE OUTLINED ARE MR CLINTON YESTERDAY TOLD THE BUSINESS ROUNDTABLE A GROUP OF EXECUTIVES FROM MAJOR CORPORATIONS I'M STILL NOT SURE HOW IT'S ALL GOING TO COME OUT THE TRANSPORTATION FUELS TAXWHICH ALREADY IS STIRRING OPPOSITION FROM THE TRUCKING AND AIRLINE INDUSTRIES WOULD RAISE ABOUT 50 BILLION OVER THE NEXT FIVE YEARS 20 BILLION LESS THAN THE PRESIDENT'S BROAD ENERGY TAX WOULD HAVE TO MAKE UP THE DIFFERENCE AND PAY FOR SEVERAL OTHER CHANGES IN THE WORKS THE COMPROMISE EVOLVING IN THE FINANCE COMMITTEE WOULD SQUEEZE MORE SAVINGS OUT OF THE MEDICARE HEALTHCARE PROGRAM FOR THE ELDERLY WIPE OUT THE HOUSEPASSED PROPOSAL TO OFFER TAX BREAKS FOR INVESTMENTS IN URBAN ENTERPRISE ZONES AND TRIM A HOUSEBACKED PLAN TO ALLOW SMALL BUSINESSES TO WRITE OFF AS MUCH AS 25000 A YEAR IN EQUIPMENT PURCHASES NO DECISIONS HAVE BEEN MADE BUT OTHER CHANGES UNDER DISCUSSION INCLUDE LIMITING THE PRESIDENT'S PROPOSAL TO INCREASE TAXES ON SOCIAL SECURITY BENEFITS TO COUPLES WITH INCOMES OF AT LEAST 42000 AND INDIVIDUALS OF INCOMES OF AT LEAST 35000 INSTEAD OF THE ORIGINAL 32000 AND 25000 THRESHOLDS TRIMMING PROPOSED INCREASES IN FOOD STAMPS AND THE EARNEDINCOME TAX CREDIT FOR THE WORKING POOR SOFTENING HOUSEPASSED TAX INCREASES ON MANUFACTURERS WITH PLANTS IN PUERTO RICO AND ON MULTINATIONAL COMPANIES WITH PROFITS IN OVERSEAS SUBSIDIARIES AND PUTTING OFF PROPOSED INCREASES IN INDIVIDUAL INCOME TAX RATES UNTIL JULY 1 1993 THE PROPOSAL TO INCREASE THE CORPORATE TAX RATE BY ONE PERCENTAGE POINT TO 35 WOULD HOWEVER TAKE EFFECT JAN 1 1993 AS THE HOUSE VOTED SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY MET WITH COMMITTEE DEMOCRATS LAST NIGHT AND IS TO MEET WITH THEM AGAIN TODAY DEMOCRATS OUTNUMBER REPUBLICANS ON THE FINANCE COMMITTEE ONLY 119 OPPOSITION TO THE PRESIDENT'S ENERGY TAX FROM DEMOCRAT DAVID BOREN OF OKLAHOMA HAS LEFT DEMOCRATS SHORT OF THE NEEDED VOTES TOP SENATE DEMOCRATS TOLD THE PRESIDENT THIS WEEK THAT HIS PLAN TO TAX ALL FUELS BASED ON THEIR HEAT CONTENT AS MEASURED IN BRITISH THERMAL UNITS WOULDN'T SURVIVE THE SENATE IN CLOSEDDOOR MEETINGS YESTERDAY THE DEMOCRATS DISCUSSED COUPLING THE PROPOSED TRANSPORTATIONFUELS TAX WITH A NEW LEVY ON ELECTRICITY NATURAL GAS AND HOME HEATING OIL BUT THEN BACKED AWAY FROM THAT OPTION THE WHITE HOUSE SAID THE PRESIDENT WILL INSIST ON A BROADBASED ENERGY TAX WHICH PRESS SECRETARY DEE DEE MYERS YESTERDAY DEFINED AS A TAX THAT DOESN'T HIT ONE INDUSTRY OR ONE REGION OF THE COUNTRY DISPROPORTIONATELY SHE RULED OUT A TAX LEVIED ONLY ON GASOLINE DESPITE THE PACKAGING THE TRANSPORTATIONFUELS TAX THAT WAS INITIALLY PROPOSED BY SEN JOHN BREAUX D LA IS VERY SIMILAR TO A STRAIGHTFORWARD INCREASE IN THE GASOLINE TAX CONGRESSIONAL ANALYSTS SAID ROUGHLY 80 OF THE REVENUES WOULD COME FROM PURCHASERS OF CAR AND TRUCK FUELS IT'S A CAMOUFLAGED GASOLINE TAX COMPLAINED THOMAS DONOHUE HEAD OF THE AMERICAN TRUCKING ASSOCIATION WHO VOWED TO FIGHT IT THE FEDERAL GASOLINE TAX CURRENTLY IS 141 CENTS A GALLON MR CLINTON HIMSELF SAID SEN BREAUX'S TAX HAS SOME ECONOMIC DIFFICULTIES BUT DIDN'T ELABORATE THE SEARCH FOR A COMPROMISE IN THE SENATE UNDERSCORED THE FRAGILITY OF THE DEMOCRATIC COALITION ON CAPITOL HILL HOUSE LIBERALS YESTERDAY LASHED OUT AT THE PROSPECT OF DEEP NEW CUTS IN MEDICARE NEW MEXICO REP BILL RICHARDSON A MEMBER OF THE DEMOCRATIC LEADERSHIP PREDICTED SUCH CUTS COULD COST THE ADMINISTRATION 40 TO 50 VOTES IN THE HOUSE BEFORE THE HOUSE VOTE LAST MONTH SEVERAL DEMOCRATS CONCERNED ABOUT VOTING FOR A MEASURE THAT MIGHT BE DROPPED LATER EXACTED THE PRESIDENT'S PROMISE TO STAND BY THE BTU TAX IN THE SENATE THEY'RE SORT OF LEFT FEELING THAT THEY'RE BEING LEFT HIGH AND DRY SAID REP JOHN BRYANT D TEXAS REP RON COLEMAN ANOTHER TEXAS DEMOCRAT SAID MR CLINTON WAS FORCED TO RETREAT BY THE PINHEADS IN THE SENATE AND THE BIG LOBBIES THAT THE PINHEADS IN THE SENATE KOWTOW TO TREASURY SECRETARY LLOYD BENTSEN SOUNDED A SIMILAR NOTE YESTERDAY BLASTING BIG OIL IN A TELEVISION INTERVIEW THE SPECIAL INTERESTS DID QUITE A JOB HE SAID THE MAJOR OIL COMPANIES CONCENTRATED ON THE OIL STATES THEY HAD SOME HIRED GUNS THAT FRANKLY PRESENTED SOME QUITE DISTORTED FIGURES THE CONGRESSIONAL BLACK CAUCUS ALREADY ANGERED BY THE PRESIDENT'S WITHDRAWAL LAST WEEK OF HIS NOMINATION OF LANI GUINIER TO BE ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS CITED CONCESSIONS TO SENATE MODERATES IN SNUBBING MR CLINTON'S INVITATION TO MEET TODAY REP KWEISI MFUME D MD THE CAUCUS CHAIRMAN WARNED THAT THE CAUCUS IS NOT PREPARED TO ACCEPT MAJOR NEW CUTS IN BENEFIT SPENDING OR A FURTHER SCALING BACK OF SUMMER JOBS FUNDING ALL OF WHICH THE SENATE IS NOW CONSIDERING ALL OF THE CAUCUS'S 38 DEMOCRATIC MEMBERS IN THE HOUSE BACKED THE ADMINISTRATION'S ECONOMIC PACKAGE LAST MONTH REP MFUME SAID THEY ARE NOW REASSESSING THEIR RELATIONSHIP WITH THE WHITE HOUSE SEN BREAUX YESTERDAY OUTLINED HIS ALTERNATIVE TO MR CLINTON'S 70 BILLION ENERGY TAX A 40 BILLION OR 73CENTAGALLON TRANSPORTATION FUELS TAX AND 30 BILLION OF MONEYSAVING CHANGES TO MEDICARE THE MEDICARE CHANGES PROPOSED BY SEN BREAUX INCLUDE INCREASING PREMIUMS FOR INDIVIDUALS WITH INCOMES ABOVE 75000 AND COUPLES WITH INCOMES ABOVE 100000 REQUIRING THAT THE ELDERLY PAY 10 OF THE COST OF HOMEHEALTH SERVICES AND SQUEEZING HOSPITALS MORE THAN THE PRESIDENT ORIGINALLY PROPOSED JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9306100012 930610 BUSINESS BRIEF NATIONAL MEDIA CORP SHAREHOLDER LAWSUIT IS FILED AGAINST FIRM SOME OFFICERS NATIONAL MEDIA CORP PHILADELPHIA SAID A SHAREHOLDER HAS FILED A LAWSUIT AGAINST THE INFOMERCIAL PRODUCTION COMPANY AND CERTAIN OF ITS OFFICERS THE SUIT SEEKS CLASSACTION STATUS THE SUIT FILED IN FEDERAL COURT IN PHILADELPHIA ALLEGES THAT THE COMPANY VIOLATED FEDERAL SECURITIES LAWS BY NOT DISCLOSING THAT A LAWSUIT HAD BEEN FILED AGAINST IT BY ONE OF ITS BUSINESS PARTNERS AFTER THE COMPANY'S FAILURE TO DISCLOSE THE LAWSUIT WAS REPORTED IN THE WALL STREET JOURNAL LAST MONTH NATIONAL MEDIA'S STOCK PRICE FELL SHARPLY YESTERDAY'S NEWS SENT NATIONAL MEDIA'S SHARES DOWN FURTHER THEY CLOSED AT 5 DOWN 13 OR 75 CENTS IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9306100011 930610 LEISURE & ARTS WATCH OUT THERE'S TROUBLE IN DINOSAURLAND BY JULIE SALAMON STEVEN SPIELBERG DIDN'T WANT JOURNALISTS ON THE SET OF JURASSIC PARK BECAUSE HE REMEMBERED WHAT HAPPENED WITH JAWS SOMEONE WROTE A STORY BEFORE THE MOVIE WAS RELEASED THAT THE MECHANIZED SHARK LOOKED SILLY THIS WASN'T GOOD ADVANCE PUBLICITY FOR A MOVIE DESIGNED TO SCARE THE PANTS OFF OF YOU DESPITE ALL ITS MUCHPUBLICIZED USERFRIENDLY TIEINS TO BURGERS AND DOLLS JURASSIC PARK IS ALSO DESIGNED FOR MAXIMUM PANTS SCARINGOFF EFFECT SO ITS DIRECTOR DIDN'T WANT TO GIVE ANYONE THE CHANCE TO OBSERVE THAT TO THE NAKED EYE JURASSIC'S MAKEBELIEVE DINOSAURS COULD BE SEEN AS PRETTY SILLY TOO NOT TO WORRY MR SPIELBERG HOWEVER THEY LOOK IN LIFE ON FILM THESE CINEMATIC GRANDCHILDREN OF THE MONSTER LIZARD GODZILLA ARE STUPENDOUS SOME OF THEM ARE TERRIFYING OTHERS ARE QUITE BEAUTIFUL ANYONE WHOSE IMAGINATION HAS BEEN TOUCHED BY DINOSAURS WILL BE ENTRANCED BY JURASSIC PARK ESPECIALLY THOSE OF US WHOSE MAIN EXPOSURE TO PREHISTORIC LIFE HAS BEEN BARNEY UNFORTUNATELY THE YOUNG CHILDREN WHO ARE BARNEY'S REAL FANS WON'T OR SHOULDN'T BE ABLE TO SEE HOW THRILLING A DINOSAUR CAN BE LIKE THE MICHAEL CRICHTON THRILLER THE MOVIE IS BASED ON JURASSIC PARK IS VIOLENTLY SCARY MR SPIELBERG HAS SO SKILLFULLY MINED THE STORY'S HORROR PICTURE POSSIBILITIES THAT PARENTS SHOULD TAKE SERIOUSLY THE PICTURE'S PG13 RATING THINK TWICE BEFORE YOU TAKE CHILDREN 12 OR UNDER MR CRICHTON'S STORY HE ALSO COAUTHORED THE SCREENPLAY WITH DAVID KOEPP HAS A WONDERFUL PREMISE HOW FAR DO WE HAVE TO GO IN A TECHNOLOGICALLY ADVANCED SOCIETY TO SEEK NEW THRILLS WHAT HAPPENS WHEN MAN TRIES TO PLAY GOD TO RESURRECT THE DEAD MR CRICHTON RAISED THESE QUESTIONS IN THE CONTEXT OF THE THEME PARK OF ALL THEME PARKS JURASSIC PARK THE DREAM CHILD OF A DEVELOPER WHO HAS ORCHESTRATED A NEW AGE OF DINOSAURS THROUGH GENETIC ENGINEERING IN THIS PLACE ONE CAN HOP ON A MOTORIZED CAR AND TAKE A RIDE THROUGH DINOSAURLAND ONLY HERE BOTH THE ANIMALS AND THE PLANT LIFE ON VIEW ARE REINCARNATED SPECIMENS FROM THE JURASSIC AGE NOT MOTORIZED FACSIMILES WITH THIS ONE I WANTED TO SHOW THEM SOMETHING THAT WASN'T AN ILLUSION EXPLAINS THE DEVELOPER THAT THEY COULD SEE AND TOUCH UNFORTUNATELY LIKE CENTURIES OF FICTIONAL DREAMERS BEFORE HIM THIS DEVELOPER DISCOVERS THAT TOYING WITH THE NATURAL ORDER IS DANGEROUS BUSINESS WHAT TAKES JURASSIC PARK OUT OF THE REALM OF AN ORDINARY THRILLER IS ITS EXPLORATION OF THIS IDEA OF SCIENTIFIC OVERREACHING HOW WE TEND TO LEAP AT TECHNOLOGICAL ADVANCES WITHOUT CONSIDERING AHEAD OF TIME WHETHER WE ARE MORALLY OR SCIENTIFICALLY ABLE TO CONTROL THEM THAT'S WHERE THE MOVIE STARTS WHEN ONE OF THE FEATURED ATTRACTIONS AT THE ABOUTTOOPEN AMUSEMENT PARK DOESN'T BEHAVE ACCORDING TO PLAN THE SCIENTISTS DISCOVER WITH PAINFUL VICIOUS CLARITY THAT YOU CAN TAKE A DINOSAUR OUT OF PREHISTORY BUT YOU CAN'T TAKE PREHISTORY OUT OF A DINOSAUR FEARFUL THAT THEIR EXCITING NEW ADVENTURE PARK MAY BE A LITTLE TOO EXCITING THE PARK'S INVESTORS DEMAND AN ENDORSEMENT FROM A CREW OF RESPECTED SCIENTISTS OR THEY'LL PULL THE PLUG BEFORE JURASSIC PARK GOES PUBLIC THE MOVIE IS WONDERFULLY ALMOST BIZARRELY ASTUTE ABOUT THE INSANE ESCALATION OF THEME PARK THRILLS AND MARKETING TIEINS BIZARRE OF COURSE BECAUSE FEW MOVIES IN HISTORY HAVE FROM CONCEPTION BEEN AS COMPLETELY LADEN WITH SPINOFF POTENTIAL AS JURASSIC PARK THEY RANGE FROM HIGH MUSEUM EXHIBITS TO REALLY LOW DINOCUPS AND THERE ARE WHOLE CATALOGS OF POSSIBLE SAURIAN JUNK IN BETWEEN THE MOVIE IS ALSO VERY GOOD ON MAKING COMPLICATED SCIENTIFIC IDEAS FATHOMABLE AND FUN AN INGENIOUS EDUCATIONAL FILMWITHINTHEFILM USES A KIND OF LOONEY TOON ZANINESS TO EXPLAIN HOW DNA SPLITTING HELPED REVIVE THE DINOSAURS AT JURASSIC PARK YET ALL IS NOT PERFECT IN WONDERLAND JURASSIC PARK PACKS THE THRILLS OF A GREAT ENTERTAINMENT BUT IT DOESN'T RESONATE LIKE A GREAT MOVIE MR SPIELBERG NEVER QUITE CONNECTS WITH THE STORY'S PHILOSOPHICAL AND EMOTIONAL LEVELS THE WAY HE DOES WITH THE SCIENTIFIC AND HORRIFIC DESPITE ONE DEWYEYED DINOSAUR THERE'S NONE OF THE HUMANCREATURE BONDING THAT MADE ET THE EXTRATERRESTRIAL SO MOVING INDEED THE PICTURE'S MOST BLATANT BID FOR EMOTIONALITY IS SO FORCED IT BECOMES ANNOYING THE STORY LINE THAT INSISTS ON USING THE BATTLE OF DINOSAURS VS HUMANS AS A WAY FOR A CHILDRESISTANT SCIENTIST TO LEARN TO LOVE KIDS THE PROBLEM MAY BE THAT WHILE THE DINOSAURS FEEL REAL THE HUMANS SEEM FAKE WITH THE EXCEPTION OF SIR RICHARD ATTENBOROUGH WHO GIVES A SLY GLINTING PERFORMANCE AS THE THEME PARK'S JAUNTY FOUNDER THE ACTING IS BROAD HEAVY ON BMOVIE WISECRACKING AND GAPING ON THE OTHER HAND MR SPIELBERG AND HIS TECHNICIANS GIVE THE ACTORS AND USREASON FOR PLENTY OF GAPES NOT JUST THE DINOSAURS THE VERY CONCEPTION OF THE MOVIE'S JURASSIC PARK STARTING WITH THE PRODUCTION DESIGN BY RICK CARTERCRACKLES WITH WIT AND IMAGINATION THIS IS FAR MORE THAN ANYTHING THE HUMAN PLAYERS SAY OR DO IT'S JUST DAZZLING VIDEO TIP GODZILLA WASN'T A DINOSAUR EXACTLY BUT HE WAS BIG AND SLITHERY AND SCARY AT LEAST THE ORIGINAL WAS INOSHIRO HONDA'S GODZILLA KING OF THE MONSTERS 9306100010 930610 US IS EXPECTED TO OFFER PEACEKEEPERS FOR MACEDONIA TO CHECK ETHNIC UNREST BY ROBERT S GREENBERGER AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION IS EXPECTED TO OFFER AS EARLY AS TODAY TO SEND SEVERAL HUNDRED PEACEKEEPERS TO MACEDONIA IN THE FIRST COMMITMENT OF US GROUND TROOPS TO THE FORMER YUGOSLAVIA OFFICIALS SAID THE US TROOPS WOULD SERVE AS PART OF A UNITED NATIONS BLUE HELMET FORCE CURRENTLY NUMBERING ABOUT 800 IN MACEDONIA THE US PEACEKEEPERS WILL BE FULLY ARMED OFFICIALS SAID AND THEIR MISSION WILL BE TO MONITOR ANY ETHNIC UNREST IN MACEDONIA AND ANY INCURSIONS SOUTHWARD BY SERBIAN FORCES ALTHOUGH THE CLINTON ADMINISTRATION IS RELUCTANT TO SAY SO THE US MILITARY CONTINGENT ALSO WILL SERVE AS A TRIPWIRE A WARNING TO THE SERBS THAT THEIR AGGRESSION WOULD TRIGGER A US MILITARY RESPONSE IN THE PAST THE ADMINISTRATION HAD SAID ONLY THAT IT WAS CONSIDERING A VARIETY OF MEASURES TO STOP THE VIOLENCE FROM SPREADING TO MACEDONIA INCLUDING THE POSSIBILITY OF SENDING TROOPS THE US OFFICIAL SAID THAT WHILE THE ADMINISTRATION WAS FIRMLY COMMITTED TO THE PLAN FINAL ARRANGEMENTS STILL HAD TO BE MADE WITH MACEDONIA A GOVERNMENT THAT THE US HAS YET TO RECOGNIZE FORMALLY THE OFFICIAL SAID AN ANNOUNCEMENT IS LIKELY TO BE MADE BOTH AT THE WHITE HOUSE AND BY SECRETARY OF STATE WARREN CHRISTOPHER WHO ARRIVED IN ATHENS LAST NIGHT TO ATTEND A MEETING WITH NORTH ATLANTIC TREATY ORGANIZATION FOREIGN MINISTERS THERE IS CURRENTLY NO FIGHTING IN MACEDONIA BUT WASHINGTON AND ITS EUROPEAN ALLIES HAVE LONG BEEN HAUNTED BY A NIGHTMARE SCENARIO IN WHICH THE BLOODY ETHNIC CONFLICT MOVES SOUTHWARD TO MACEDONIA DRAWING IN GREECE ALBANIA BULGARIA AND TURKEY AFTER MEETING IN LUXEMBOURG THIS WEEK WITH EUROPEAN FOREIGN MINISTERS MR CHRISTOPHER SAID HE HAD STRESSED THE DETERMINATION OF THE US TO TAKE STEPS IN KOSOVO AND MACEDONIA THAT WILL PREVENT THE SPILLOVER OF THIS CONFLICT ELSEWHERE THE DISPATCH OF US TROOPS TO MACEDONIA COULD BLUNT AT LEAST SOME OF THE CRITICISM FROM FRANCE AND OTHER ALLIES THAT COMPLAIN THAT THEIR PEACEKEEPERS IN BOSNIA ARE BEARING THE BRUNT OF THE DANGER WHILE US PILOTS FLY RELIEF MISSIONS AND MONITOR A NOFLY ZONE FROM THE RELATIVE SAFETY OF THE SKY MR CHRISTOPHER IS IN EUROPE THIS WEEK TO DISCUSS PLANS FOR PROTECTING SIX MUSLIM SAFE HAVENS BUT IN WASHINGTON A SENIOR US INTELLIGENCE ANALYST CALLED THE HAVENS UNTENABLE DESCRIBING THEM AS SIX WEST BANKS IN EASTERN EUROPE AND PREDICTED THAT CIRCUMSTANCES WOULD COMPEL THE US TO ACCEPT A PARTITIONING OF BOSNIA AN IDEA THAT HAS BEEN PUBLICLY REJECTED BY THE CLINTON ADMINISTRATION A STATE DEPARTMENT OFFICIAL INSISTED HOWEVER THAT THE ADMINISTRATION WASN'T BACKING ANY PLAN FOR PARTITION THE SENIOR ANALYST SAID HIS OPINIONS HAD BEEN COMMUNICATED TO KEY POLICY MAKERS INCLUDING OFFICIALS IN THE WHITE HOUSE IN A SUBSEQUENT PHONE CALL TO THE WALL STREET JOURNAL THE INTELLIGENCE OFFICIAL EMPHASIZED THAT HE WASN'T CRITICIZING MR CHRISTOPHER'S MISSION OR THE ADMINISTRATION'S CHOSEN POLICY HE SAID HOWEVER THAT HE BELIEVED THE SAFE HAVENS APPROACH HAD ONLY ABOUT A 20 CHANCE OF SUCCESS MR CHRISTOPHER'S ANNOUNCEMENT ABOUT MACEDONIA COULD RAISE THE HACKLES OF HIS GREEK HOSTS GREECE DOESN'T ACCEPT AN INDEPENDENT MACEDONIA WHICH HAS THE SAME NAME AS A GREEK PROVINCE CLAIMING THAT SUCH A STATE WOULD HAVE IRREDENTIST DESIGNS ON GREEK TERRITORY BECAUSE OF THE DISPUTE THE US HAS YET TO EXTEND DIPLOMATIC RECOGNITION TO MACEDONIA THE UN SECURITY COUNCIL IS EXPECTED TO ADOPT A RESOLUTION SHORTLY ORDERING GREECE AND MACEDONIA TO RETURN TO THE BARGAINING TABLE TO SETTLE THEIR DISPUTE 9306100009 930610 ECONOMY SENATE COMMITTEE PROPOSES COMPROMISE ON RESTRUCTURING STUDENT LOAN PROGRAM BY KENNETH H BACON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE LABOR COMMITTEE PROPOSED A COMPROMISE FOR RESTRUCTURING THE GUARANTEED STUDENT LOAN PROGRAM THAT WOULDN'T MOVE COMPLETELY TO THE DIRECT GOVERNMENT LENDING PLAN PRESIDENT CLINTON PROPOSED THE COMPROMISE WHICH THE PANEL IS EXPECTED TO EMBRACE FORMALLY TODAY WOULD HAVE A HUGE IMPACT ON THE ORGANIZATION AND PROFITS OF A PUBLICPRIVATE SYSTEM THAT MAKES 15 BILLION OF GUARANTEED LOANS TO 34 MILLION COLLEGE AND TRADE SCHOOL STUDENTS ANNUALLY CURRENTLY ALL THE LOANS ARE MADE THROUGH ABOUT 3500 BANKS UNDER THE COMPROMISE WHICH HAS THE SUPPORT OF THE ADMINISTRATION AT LEAST 50 OF THE LOANS WOULD BE MADE DIRECTLY BY THE GOVERNMENT THROUGH EDUCATIONAL INSTITUTIONS BY 1997 BANKS WOULD CONTINUE TO MAKE THE REST OF THE LOANS WHILE A COMMISSION WOULD DETERMINE WHETHER THE SYSTEM SHOULD MOVE COMPLETELY TO DIRECT LENDING IN ADDITION THE HEADS OF THE TREASURY AND EDUCATION DEPARTMENTS WOULD CONSIDER THE FUTURE OF THE STUDENT LOAN MARKETING ASSOCIATION THE HIGHLY PROFITABLE CORPORATION THAT PURCHASES STUDENT LOANS FROM BANKS AND PACKAGES THEM INTO SECURITIES SOLD TO THE PUBLIC THE COMPROMISE WOULD SHRINK THE LOANS AVAILABLE FOR SALLIE MAE TO PURCHASE AS WELL AS IMPOSE NEW COSTS ON THE PRIVATELY OWNED FEDERALLY CHARTERED CORPORATION AS A RESULT SALLIE MAE WOULD LIKE TO ESCAPE THE LIMITATIONS OF ITS CHARTER SO IT COULD EXPAND ITS FINANCING ACTIVITIES BEYOND STUDENT LOANS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY SALLIE MAE SHARES ROSE 1 OR 22 TO 4725 SALLIE MAE AND THE BANKING INDUSTRY HAVE LOBBIED HARD TO BLOCK THE ADMINISTRATION'S PLAN TO HAVE THE GOVERNMENT TAKE OVER THE STUDENT LOAN PROGRAM PRESIDENT CLINTON WHO HAS PERSONALLY CRITICIZED THE HIGH PROFITS SALLIE MAE AND BANKS MAKE FROM THE PROGRAM SAID HIS PROPOSAL WOULD SAVE 43 BILLION OVER FIVE YEARS THE COMPROMISE IS AN AMPUTATION RATHER THAN AN EXECUTION SAID PHILIP CORWIN A LAWYER FOR THE AMERICAN BANKERS ASSOCIATION THE ADMINISTRATION HAS BUILT SUPPORT FOR ITS DIRECT LENDING PROPOSAL WHICH THE HOUSE HAS ALREADY APPROVED BY CLAIMING THAT IT WOULD SAVE BILLIONS OF DOLLARS LOWER COSTS TO STUDENTS AND MAKE IT LESS CUMBERSOME TO GET LOANS BECAUSE THE SENATE COMPROMISE DOESN'T GO AS FAR AS THE HOUSE MEASURE DOES THE DIFFERENCES WOULD HAVE TO BE WORKED OUT UNDER EITHER PLAN ONE OF THE MAIN BENEFITS TO STUDENTS WOULD BE A BROADER RANGE OF REPAYMENT OPTIONS CURRENTLY STUDENTS MUST REPAY LOANS IN EQUAL MONTHLY PAYMENTS OVER 10 YEARS AFTER COMPLETING SCHOOL THE HOUSE BILL AND THE SENATE COMPROMISE WOULD ALLOW MORE OPTIONS INCLUDING A GRADUATED REPAYMENT PLAN WITH LOW INITIAL PAYMENTS RISING WITH THE GRADUATE'S INCOME IF CONGRESS ENACTS MR CLINTON'S PROPOSED NATIONAL SERVICE PROGRAM GRADUATES WOULD BE ABLE TO SUBSTITUTE WORK FOR PAYMENT UP TO A CERTAIN LEVEL IN ADDITION THE COMPROMISE REDUCES THE ORIGINATION FEE THE STUDENT MUST PAY TO 3 FROM 5 OF THE LOAN UNDER THE COMPROMISE DIRECT LENDING WOULD BE PHASED IN 5 IN THE FIRST YEAR 30 IN THE SECOND 40 IN THE THIRD AND AT LEAST 50 IN THE LAST YEAR DURING THE PHASEIN PERIOD THE EDUCATION DEPARTMENT WOULD SELECT SCHOOLS TO MAKE LOANS DIRECTLY THESE SCHOOLS WOULD BE REIMBURSED BY THE GOVERNMENT RATHER THAN SENDING THE STUDENT TO A BANK FOR A LOAN THE ADMINISTRATION HAS PUSHED HARD FOR THE CHANGE EVENTUALLY IT WANTS TO PUT THE INTERNAL REVENUE SERVICE IN CHARGE OF COLLECTING DEFAULTED LOANS A MOVE THAT WOULD SHARPLY REDUCE DEFAULTS WHICH COST THE GOVERNMENT 27 BILLION LAST YEAR 9306100008 930610 BELLSOUTH COX JOINT AD VENTURE ATLANTA BELLSOUTH CORP AND COX ENTERPRISES INC SAID THEY PLAN TO FORM A JOINT VENTURE TO DEVELOP AND SELL SERVICES BASED ON NEWSPAPER CLASSIFIED ADS AND TELEPHONE COMPANY YELLOW PAGES ADS THE JOINT VENTURE TO BE OWNED EQUALLY BY BELLSOUTH AND COX IS EXPECTED TO INTRODUCE SERVICES IN THE ATLANTA AREA THIS YEAR AND THEN LATER IN WESTALM BEACH FLA IN ADDITION IT PLANS TO OFFER SIMILAR SERVICES TO OTHER NEWSPAPERS THROUGHOUT BELLSOUTH'S NINESTATE SOUTHEASTERN US TERRITORY THE TRANSACTION IS SUBJECT TO A DEFINITIVE AGREEMENT THE VENTURE REPRESENTS THE FIRST MAJOR ALLIANCE BETWEEN A REGIONAL BELL TELEPHONE COMPANY AND A NEWSPAPER PUBLISHER TO JOINTLY OFFER ADVERTISING SERVICES MANY PUBLISHERS WORRIED THAT THEY WILL LOSE CLASSIFIED AD REVENUES HAVE BEEN FIGHTING TELEPHONE COMPANY ENTRY INTO THE INFORMATION SERVICES BUSINESS 9306100007 930610 LIBBEYOWENSFORD SUES OHIO PROFESSOR THREE FIRMS ALLEGING PLOT TO DEFRAUD BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL LIBBEYOWENSFORD SUED THREE OHIO COMPANIES AND A BUSINESS PROFESSOR FOR CONSPIRING WITH UNIDENTIFIED COMPANY OFFICIALS TO DEFRAUD THE GLASS MAKER THE LAWSUIT WAS FILED IN COMMON PLEAS COURT IN COLUMBUS OHIO IN LATE MAY TWO WEEKS AFTER LOF DISMISSED WITHOUT ANY EXPLANATION ITS CHIEF EXECUTIVE OFFICER RONALD W SKEDDLE AND TWO EXECUTIVE VICE PRESIDENTS EDWARD BRYANT AND DARYL COSTIN THE THREE EXECUTIVES AREN'T NAMED IN THE COMPLAINT WHICH CHARGES CLARENCE H MARTIN A BUSINESS PROFESSOR AT OHIO UNIVERSITY IN ATHENS WITH CONSPIRING WITH UNIDENTIFIED OFFICERS AND DIRECTORS OF LOF TO DEFRAUD THE TOLEDO OHIO GLASS MAKER THE LAWSUIT ALLEGES THAT DR MARTIN AND ENERGY SYSTEMS MANAGEMENT OF OHIO INC CONSPIRED WITH THE UNNAMED OFFICERS TO ACQUIRE VALUABLE GAS WELLS OWNED BY LOF AT AN ARTIFICALLY LOW PRICE LOF IS A SUBSIDIARY OF LONDONBASED PILKINGTON PLC THE SUIT ALSO ALLEGES THAT DR MARTIN AND A SEPARATE FIRM FLEXIBLE AUTOMATION SYSTEMS INC CONSPIRED TO BUY ROBOTS TO BE LEASED TO LOF AT AN EXORBITANT LEASE RATE GROSSLY IN EXCESS OF FAIR MARKET VALUE RICHARD PANZA AN ATTORNEY WHO REPRESENTS DR MARTIN AND THE TWO CONCERNS DENIED THE ALLEGATIONS AND DENIED THAT DR MARTIN WAS IN ANY WAY CONNECTED WITH FLEXIBLE AUTOMATION SYSTEMS INC THERE IS NO FRAUD INVOLVED PERIOD MR PANZA SAID LOF SOUGHT DR MARTIN'S ASSISTANCE MR PANZA ADDED CALLING THE COMPLAINTS BOLD UNSUBSTANTIATED ALLEGATIONS THE SUIT DOESN'T IDENTIFY THE DIRECTORS AND OFFICERS OF LOF WITH WHOM DR MARTIN ALLEGEDLY CONSPIRED MR PANZA SAYS THAT LOF NAMED DR SKEDDLE AND MESSRS BRYANT AND COSTIN IN DISCOVERY MOTIONS FILED WITH THE COMPLAINT ALL THREE OF THE FORMER LOF EXECUTIVES WERE ABRUPTLY ESCORTED FROM THEIR OFFICES MAY 10 AND WERE SUSPENDED FROM THEIR JOBS PENDING A COMPANY INVESTIGATION IN LATE MAY ACCORDING TO THE TOLEDO BLADE NEWSPAPER LOF MADE THE SUSPENSIONS PERMANENT THE THREE EXECUTIVES HAVE DECLINED TO DISCUSS THE CONTROVERSY AND THEIR ATTORNEY WASN'T AVAILABLE FOR COMMENT YESTERDAY LOF AND ITS PARENT PILKINGTON ALSO HAVE SAID LITTLE ABOUT THE ABRUPT MANAGEMENT CHANGES PILKINGTON SAID THE COMPANY IS PERFORMING AN INTERNAL INVESTIGATION INTO A FAILURE TO FOLLOW CORPORATE PROCEDURES AND THAT NO MAJOR FINANCIAL LOSS WAS INVOLVED ACCORDING TO THE LAWSUIT THE UNIDENTIFIED LOF OFFICERS FAILED TO DISCLOSE THEIR INTEREST IN ENERGY SYSTEMS MANAGEMENT WHICH THROUGH AN INTERMEDIARY CORPORATION PURCHASED GAS WELLS AT A DEFLATED PRICE MR PANZA WHO REPRESENTS THE ENERGY CONCERN DECLINED TO IDENTIFY ITS OWNERS OR OFFICERS BUT HE DID SAY HE BELIEVED THAT ABOUT 100 GAS AND OIL WELLS NEAR CAMBRIDGE OHIO WERE SOLD BY LOF FOR THEIR APPRAISED VALUE ACCORDING TO THE LAWSUIT AND CORPORATE RECORDS ON FILE WITH THE OHIO SECRETARY OF STATE'S OFFICE DR MARTIN'S HOME ADDRESS IN GAHANNA OHIO IS ALSO THE ADDRESS OF ENERGY SYSTEMS MANAGEMENT OF OHIO AND FLEXIBLE AUTOMATION SYSTEMS INC NO OFFICERS FOR EITHER CORPORATION ARE LISTED BLACK RIVER CORPORATE SERVICE INC OF LORAIN OHIO WAS LISTED BY THE SECRETARY OF STATE AS THE INCORPORATING AGENT OF BOTH COMPANIES IT ALSO IS A DEFENDANT IN THE LAWSUIT IT'S ADDRESS IS THE SAME AS MR PANZA'S LAW FIRM WICKENS HERZER & PANZA MR PANZA SAID THE FIRM IS A STATUTORY AGENT THAT ACCEPTS LEGAL NOTICE FOR THE OTHER FIRMS DR SKEDDLE WHO EARNED A PHD IN MANAGEMENT AND ECONOMICS FROM CASE WESTERN RESERVE UNIVERSITY IS A PILLAR OF TOLEDO'S BUSINESS AND CIVIC ESTABLISHMENT TOLEDO BUSINESS AND CIVIC LEADERS WERE SHOCKED BY HIS SUDDEN DEPARTURE FROM LOF HE BEGAN HIS CAREER IN THE GLASS BUSINESS IN 1965 WITH PPG INDUSTRIES AND WAS NAMED PRESIDENT OF WHAT WAS THEN LOF GLASS IN 1982 HE IS A MEMBER OF THE BOARDS OF FEDERALMOGUL CORP COLUMBIA GAS OF OHIO INC AND COOPER TIRE & RUBBER HE ALSO HAS SERVED ON HOSPITAL AND CHARITY BOARDS IN TOLEDO AND HAS HELPED RAISE FUNDS FOR REPUBLICAN CANDIDATES AND FOR THE UNITED WAY 9306100006 930610 SAFETY STANDARD IS RAISED FOR DISPOSABLE LIGHTERS WASHINGTON THE CONSUMER PRODUCT SAFETY COMMISSION RULED THAT MANUFACTURERS OF DISPOSABLE CIGARETTE LIGHTERS MUST MAKE THEIR PRODUCTS TOO DIFFICULT FOR CHILDREN UNDER THE AGE OF FIVE TO USE THE MANDATORY SAFETY STANDARD WAS APPROVED UNANIMOUSLY BY THE COMMISSION AND APPLIES TO ALL DISPOSABLE BUTANE LIGHTERS AND NOVELTY LIGHTERS SUCH AS THOSE RESEMBLING CARTOON CHARACTERS THE STANDARD COVERS MORE THAN 95 OF THE HALFBILLION LIGHTERS PURCHASED ANNUALLY IN THE US INCLUDING IMPORTED PRODUCTS THE RULE IS EXPECTED TO PREVENT ABOUT 100 FIRERELATED DEATHS ANNUALLY CPSC OFFICIALS SAID ABOUT 5000 RESIDENTIAL FIRES A YEAR ARE CAUSED BY CHILDREN UNDER FIVE PLAYING WITH LIGHTERS THOSE FIRES RESULT IN 150 DEATHS AND OVER 1000 INJURIES ACCORDING TO THE AGENCY THE NEW STANDARD TAKES EFFECT IN THE SUMMER OF 1994 9306100005 930610 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 BEAR STEARNS COS 200 MILLION OF NOTES DUE JUNE 15 2000 PRICED AS 65S AT 99928 TO YIELD 6513 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 08 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEA BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY THE BORROWER'S INVESTMENTBANKING UNIT BEAR STEARNS & CO DRESSER INDUSTRIES INC 300 MILLION OF NOTES DUE JUNE 1 2000 PRICED AT PAR TO YIELD 625 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 055 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED SINGLEA1 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO MORGAN STANLEY GROUP INC 150 MILLION OF NOTES DUE JUNE 15 1997 PRICED AS 565S AT 99965 TO YIELD 566 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 06 PERCENTAGE POINT ABOVE THE COMPARABLE TREASURY NOTE MATURING IN 1997 RATED SINGLEA1 BY MOODY'S AND SINGLEAPLUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY THE BORROWER'S INVESTMENTBANKING UNIT MORGAN STANLEY & CO SOCIETY NATIONAL BANK 200 MILLION OF SUBORDINATED NOTES DUE JUNE 15 2003 PRICED AS 675S AT 99378 TO YIELD 6837 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 077 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 JP MORGAN SECURITIES INC SOCIETY NATIONAL BANK IS A UNIT OF SOCIETY CORP SOUTHERN CALIFORNIA GAS CO 125 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 15 2023 WON BY A GROUP OF DEALERS LED BY MORGAN STANLEY & CO THE BONDS WILL BE REOFFERED AS 75S AT 988 TO YIELD 7602 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 07 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND MORGAN STANLEY'S BID RESULTED IN 7637 NET INTEREST COST TO THE COMPANY THE ISSUE IS RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P SOUTHERN CALIFORNIA GAS IS A UNIT OF PACIFIC ENTERPRISES STUDENT LOAN MARKETING ASSOCIATION 1 BILLION OF ANNUAL RESET FLOATINGRATE NOTES DUE JULY 1 1996 PRICED THROUGH DEALERS LED BY MERRILL LYNCH & CO THE NONCALLABLE ISSUE WAS PRICED TO FLOAT INITIALLY AT A SPREAD OF 02 PERCENTAGE POINT ABOVE THE TREASURY ONEYEAR BILL TO YIELD 383 THE ISSUE WILL BE RESET ANNUALLY ON JUNE 30 BASED ON THE YIELD OF THE TREASURY ONEYEAR BILL AUCTIONED THE PREVIOUS MAY HOWEVER IF ON THE RESET DAY THE ONEYEAR TREASURY BILL RATE IS GREATER THAN 875 THE ISSUE WILL BE RESET WEEKLY AT A RATE OF 02 PERCENTAGE POINT ABOVE THE TREASURY THREEMONTHBILL RATE WMX TECHNOLOGIES INC 300 MILLION ISSUE OF NOTES DUE JUNE 15 1996 PRICED AS 4975S AT 99628 TO YIELD 501 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 035 PERCENTAGE POINT ABOVE THE TREASURY THREEYEAR NOTE RATED SINGLEA1 BY MOODY'S AND DOUBLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY KIDDER PEABODY & CO ELLETT BROTHERS INC INITIAL PUBLIC OFFERING OF 1225000 COMMON SHARES AT 9 APIECE THROUGH MANAGING UNDERWRITER SOUTHCOAST CAPITAL CORP FOREST OIL CORP 10 MILLION COMMON SHARES PRICED AT 5 APIECE THROUGH UNDERWRITERS LED BY SALOMON BROTHERS ROBERT MONDAVI WINERY INITIAL OFFERING OF 37 MILLION CLASS A SHARES PRICED AT 1350 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO HEALTHCARE REALTY TRUST INC SIX MILLION SHARES OF COMMON STOCK SOLD AT 1950 APIECE IN AN ITITIAL PUBLIC OFFERING LED BY UNDERWRITER DONALDSON LUFKIN & JENRETTE SECURITIES CORP DADE COUNTY FLA SCHOOL DISTRICT 160 MILLION SERIES 1993 UNLIMITEDTAX REFUNDING BONDS APPARENTLY WON BY A MORGAN STANLEY & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 53492 YIELDS RANGE FROM 25 IN 1994 TO 553 IN 2008 THE BONDS ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P HOUSTON 2705 MILLION SERIES 1993 AJ CERTIFICATES OF PARTICIPATION PRICED BY A PAINEWEBBER INC GROUP THIS SERIES ALSO INCLUDES ZEROCOUPON BONDS WHICH ARE PRICED TO YIELD TO MATURITY FROM 28 IN DECEMBER TO 555 IN 2003 ALL ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P MICHIGAN HOUSING DEVELOPMENT AUTHORITY 2125 MILLION 1993 SERIES A RENTAL HOUSING REVENUE BONDS PRICED BY A GOLDMAN SACHS & CO GROUP THE ISSUE INCLUDES 1614 MILLION CURRENTCOUPON BONDS WHICH ARE PRICED TO YIELD FROM 345 IN 1995 TO 59 IN 2023 ALL ARE INSURED BY AMBAC INDEMNITY CORP AND CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P NOT FORMALLY REOFFERED TO INVESTORS ARE CURRENTCOUPON BONDS DUE IN 1994 256 MILLION PERIODIC AUCTION RESET SECURITIES AND 256 MILLION INVERSE FLOATING RATE SECURITIES NEW YORK STATE 1539 MILLION VARIOUSPURPOSE GENERAL OBLIGATION BONDS APPARENTLY WON BY FIRST BOSTON CORP WITH A BID SETTING THE TRUE INTEREST COST AT 5183 PROCEEDS FROM THE SALE OF THE BONDS WILL BE USED FOR A NUMBER OF CAPITALCONSTRUCTION PURPOSES YIELDS RANGE FROM 26 IN 1994 TO 57 IN 20142023 MOODY'S HAS RATED THE ISSUE SINGLEA AND S&P HAS ASSIGNED A SINGLEAMINUS RATING SANTA CLARA COUNTY CALIF 173 MILLION IN 19931994 TAX AND REVENUE ANTICIPATION NOTES APPARENTLY WON BY MORGAN STANLEY & CO AND BT SECURITIES CORP MORGAN STANLEY IS BELIEVED TO HAVE WON 100 MILLION OF THE NOTES WITH A BID SETTING THE NET INTEREST COST AT 2814 AND 13 MILLION WITH AN NET INTEREST COST OF 2837 THE NOTES DUE JULY 29 1994 HAVE A 325 COUPON AND ARE PRICED TO YIELD 275 BT'S 60 MILLION OF NOTES WERE APPARENTLY WON WITH AN NET INTEREST COST OF 2823 THE SECURITIES ARE ALSO 325S PRICED TO YIELD 275 MOODY'S HAS RATED THE ISSUE MIG1 AND S&P HAS ASSIGNED AND SP1PLUS RATING WASHINGTON SUBURBAN SANITARY DISTRICT MD 120 MILLION VARIOUS 1994 UNLIMITEDTAX BONDS APPARENTLY WON BY A BEAR STEARNS & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 5186 YIELDS RANGE FROM 25 IN 1994 TO 555 IN 2016 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA WISCONSIN 350 MILLION 1993 CASHFLOW OPERATING NOTES APPARENTLY WON BY A GOLDMAN SACHS & CO GROUP THERE WAS A BID SETTING THE NET INTEREST COST AT 2634 FOR 250 MILLION OF THE NOTES AND A BID SETTING NET INTEREST COST AT 2623 FOR THE REMAINING 100 MILLION THE NOTES DUE JUNE 15 1994 HAVE A 325 COUPON AND ARE PRICED TO YIELD 255 MOODY'S HAS RATED THE ISSUE MIG1 AND S&P HAS ASSIGNED AN SP1PLUS RATING FEDERAL HOME LOAN MORTGAGE CORP 300 MILLION OF REALESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY KIDDER PEABODY & CO THE OFFERING SERIES 1549 IS BACKED BY THE AGENCY'S 15YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 76 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 147 YEARS FIRST DEPOSIT NATIONAL BANK 1 BILLION IN CREDITCARD ASSETBACKED SECURITIES VIA TWO SERIES PRICED THROUGH UNDERWRITERS LED BY CHASE SECURITIES INC ACCORDING TO MCM CORPORATEWATCH FIRST DEPOSIT MASTER TRUST 19931 A 500 MILLION ISSUE WITH A 25YEAR AVERAGE LIFE WAS PRICED AS 49S AT 99 31/32 TO YIELD 4964 A 50BASISPOINT SPREAD ABOVE THE BLENDED TWOYEAR TO THREEYEAR TREASURY NOTES THE SECURITIES WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P BASED ON A 19 CASH COLLATERAL ACCOUNT THE SECURITIES WERE OFFERED IN A 12MONTH CONTROLLEDAMORTIZATION STRUCTURE THE EXPECTED FINAL MATURITY IS JUNE 15 1996 MONTHLY PAYMENTS BEGIN JULY 15 FIRST DEPOSIT MASTER TRUST 19932 A 500 MILLION ISSUE WAS PRICED AS 575S AT 99 26/32 TO YIELD 586 A 53BASISPOINT SPREAD ABOVE THE TREASURY'S FIVEYEAR NOTE THE TRANSACTION WAS STRUCTURED AS A FIVEYEAR SOFT BULLET THE EXPECTED FINAL MATURITY IS JUNE 15 1998 THE SECURITIES WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P ON A 20 CASH COLLATERAL ACCOUNT FIRST DEPOSIT IS BASED IN TILTON NH GREEN TREE FINANCIAL CORP 4506 MILLION OF MANUFACTUREDHOUSING ASSETBACKED SECURITIES PRICED IN FIVE PARTS THROUGH UNDERWRITERS LED BY LEHMAN BROTHERS INC THE 1461 MILLION IN CLASS A1 CERTIFICATES WERE PRICED AT PAR WITH AN INITIAL COUPON OF 375 THE CERTIFICATES WITH A 22YEAR AVERAGE LIFE WILL FLOAT 50 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE TO A 9 CAP THE 1088 MILLION IN CLASS A2 CERTIFICATES WERE PRICED AS 61 AT 99 25/32 TO YIELD 6229 A SPREAD OF 90 BASIS POINTS ABOVE THE TREASURY FIVEYEAR NOTE THE CERTIFICATES HAVE A 515YEAR AVERAGE LIFE THE 509 MILLION IN CLASS A3 CERTIFICATES WERE PRICED AS 655 AT 99 25/32 TO YIELD 6674 A 98BASISPOINT SPREAD ABOVE THE TREASURY SEVENYEAR NOTE THE CERTIFICATES HAVE AN AVERAGE LIFE OF 75 YEARS THE 795 MILLION IN CLASS A4 CERTIFICATES WERE PRICED AS 69 AT 99625 TO YIELD 7053 A 100BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE 6734 MILLION IN CLASS B CERTIFICATES WERE PRICED AS 8 AT 99 21/32 TO YIELD 8176 A 2125BASISPOINT SPREAD ABOVE THE TREASURY'S 10YEAR NOTE THE CERTIFICATES HAVE A 1318YEAR AVERAGE LIFE TO A 10 CLEANUP CALL OR A FINAL MATURITY OF 1429 YEARS IF THE CALL ISN'T EXERCISED ALL THE A CLASSES WERE RATED DOUBLEA2 BY MOODY'S AND DOUBLEAPLUS BY DUFF & PHELPS CREDIT RATING CO THE CLASS B SECURITIES WERE RATED BAA3 BY MOODY'S AND TRIPLEBMINUS BY D&P BANKAMERICA CORP US 150 MILLION OF SUBORDINATED COLLARED FLOATINGRATE EURONOTES DUE JUNE 25 2003 AT ISSUE PRICE PAR VIA KIDDER PEABODY INTERNATIONAL NOTES PAY INTEREST SEMIANNUALLY AT 0125 POINT BELOW LONDON INTERBANK OFFERED RATE FOR DOLLARS SUBJECT TO MINIMUM COUPON 55 AND MAXIMUM 10 FEES 05 POINT BANK OF GREECE GREECE 100 MILLION OF 975 EUROBONDS DUE JUNE 30 2003 AT ISSUE AND FIXED REOFFER PRICE 9886 VIA SG WARBURG SECURITIES LTD BONDS YIELD 994 ANNUAL A SPREAD OF 175 BASIS POINTS ABOVE 8 GILT DUE JUNE 2003 FEES 0625 POINT DAINICHISEIKA COLOUR & CHEMICALS MANUFACTURING CO JAPAN 100 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE JUNE 24 1997 WITH EQUITYPURCHASE WARRANTS CARRYING 0875 COUPON AT PAR VIA CREDIT SUISSE EACH 50000FRANC NOTE EXERCISABLE FROM JULY 1 1993 TO JUNE 13 1997 TO PURCHASE COMPANY SHARES FINAL TERMS FIXED JUNE 14 FEES 1625 POINT EUROPEAN INVESTMENT BANK SUPRANATIONAL 700 BILLION ITALIAN LIRE OF 1015 EUROBONDS DUE JULY 6 1998 AT ISSUE PRICE 10158 VIA BANCA COMMERCIALE ITALIANA BANCA NAZIONALE DEL LAVORO AND CREDITO ITALIANO BONDS YIELD 102 AT COMANAGING BANKS' BREAKEVEN PRICE OF 9983 FEES 175 POINTS GUARANTEED EXPORT FINANCE CORP PLC UK AGENCY 500 MILLION OF 725 EUROBONDS DUE DEC 15 1998 AT ISSUE AND FIXED REOFFER PRICE 99515 VIA SAMUEL MONTAGU & CO LTD BONDS YIELD 7375 ANNUAL A SPREAD OF 20 BASIS POINTS ABOVE 725 GILT DUE 1998 GUARANTOR UK GOVERNMENT'S SECRETARY OF STATE FOR TRADE AND INDUSTRY ACTING THROUGH THE EXPORT CREDIT GUARANTY DEPARTMENT FEES 025 POINT PRIME PROPERTY FUNDING INC SPECIAL PURPOSE 172 MILLION OF ASSETBACKED EUROBONDS DUE JUNE 23 1998 AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD BONDS SECURED ON PROPERTIES AT FOUR MIDWESTERN US SHOPPING MALLS OPERATED BY PARENT EQUITABLE LIFE ASSURANCE SOCIETY OF THE US AN EQUITABLE COS UNIT NOTES PAY INTEREST AT 110 BASIS POINTS ABOVE THREEMONTH LIBOR FOR DOLLARS CALLABLE ON ANY INTEREST PAYMENT DATE AT PAR FEES UNDISCLOSED UNILEVER PLC UK 100 MILLION OF 7375 EUROBONDS DUE DEC 22 1998 AT ISSUE PRICE 101575 VIA SG WARBURG SECURITIES LTD AND IBJ INTERNATIONAL LTD REOFFERED AT 9995 TO YIELD 737 ANNUAL A SPREAD OF 23 BASIS POINTS ABOVE 725 GILT DUE 1998 FEES 1875 POINTS WOOLWICH BUILDING SOCIETY UK 125 MILLION OF FLOATINGRATE EURONOTES DUE JUNE 1997 AT ISSUE AND FIXED REOFFER PRICE 9973 VIA UBS LTD INTEREST FLOATS AT THREEMONTH LIBOR FOR POUNDS PLUS 01875 POINT FEES 0125 POINT 9306100004 930610 BUSINESS BRIEF FEDERAL INDUSTRIES LTD COMPANY INTENDS TO SELL OFF REGAL GREETINGS TO PUBLIC FEDERAL INDUSTRIES LTD SAID IT PLANS TO SELL ITS REGAL GREETINGS & GIFTS CORP UNIT TO THE PUBLIC FOR 492 MILLION CANADIAN DOLLARS US383 MILLION FEDERAL SAID A GROUP OF UNDERWRITERS LED BY RBC DOMINION SECURITIES INC OF TORONTO AGREED TO PURCHASE THE TORONTO CATALOG RETAILER FOR RESALE TO THE PUBLIC A TOTAL OF 48 MILLION COMMON SHARES WILL BE SOLD THROUGH AN INITIAL PUBLIC OFFERING AT C1025 A SHARE FEDERAL A TRANSPORTATION AND STEELMANUFACTURING CONCERN SAID IT WILL RECEIVE AN ADDITIONAL C10 MILLION FROM REGAL TO REPAY INTERCOMPANY DEBT THE COMPANY SAID IT PLANS TO USE THE ESTIMATED C554 MILLION NET PROCEEDS TO REDUCE ITS DEBT LEVELS FEDERAL BASED IN WINNIPEG MANITOBA SAID IT EXPECTS THE OFFERING TO CLOSE JUNE 21 9306100003 930610 BUSINESS BRIEF BIG O TIRES INC CONSOLIDATION IS PLANNED FOR DISTRIBUTION CENTERS BIG O TIRES INC ENGLEWOOD COLO SAID IT PLANS TO CONSOLIDATE ITS DISTRIBUTION CENTERS A MOVE THE COMPANY SAID MAY RESULT IN A ONETIME CHARGE AGAINST SECONDQUARTER EARNINGS THE TIRE RETAILER SAID ITS CORPORATE OFFICES WILL REMAIN NEAR DENVER BUT TWO DISTRIBUTION CENTERS IN CALIFORNIA AND ONE IN DENVER WILL BE CONSOLIDATED INTO A LARGER FACILITY THE COMPANY SAID IT HASN'T SELECTED A LOCATION FOR THE NEW FACILITY THE COMPANY SAID THE CONSOLIDATION WILL RESULT IN SIGNIFICANT SAVINGS AND THE FACILITY IS EXPECTED TO BE OPERATIONAL BY THE END OF 1995 THE COMPANY DIDN'T DISCLOSE THE SIZE OF ANY POSSIBLE CHARGE DURING THE SECOND QUARTER OF 1992 BIG O REPORTED NET INCOME OF 939600 OR 27 CENTS A SHARE 9306100002 930610 COMPUTERS APPLE'S WOES RENEW WORRIES ABOUT PRICE WAR'S BITE BY CHARLES MCCOY AND KEN YAMADA STAFF REPORTERS OF THE WALL STREET JOURNAL THE PC PRICE WARS CONTINUE TO BLAZE AND APPLE COMPUTER INC IS PROVING TO BE ONE OF THE MOST NOTABLE CASUALTIES APPLE DISCLOSED YESTERDAY THAT EARNINGS FOR THE SECOND HALF OF ITS FISCAL YEAR ENDING SEPT 25 WILL BE BELOW YEAREARLIER LEVELS IT SAID THE PROFIT DECLINE WILL COME DESPITE STRONG SALES BECAUSE PRICE PRESSURES ARE PUMMELING APPLE'S MARGINS APPLE ALSO INDICATED THAT FURTHER PRICE CUTS FOR ITS FLAGSHIP MACINTOSH COMPUTERS SOME MODELS OF WHICH HAVE BEEN DISCOUNTED BY MORE THAN ONETHIRD SINCE THE BEGINNING OF THE YEAR WILL BE INSTITUTED SOON THE DISCLOSURE RENEWED FEARS THAT THE PRICE WARS WHICH HAVE DRIVEN SEVERAL PC MAKERS UNDER AND GENERALLY WREAKED HAVOC WITH INDUSTRY PROFITS ARE FAR FROM OVER AND IN FACT MAY BE GAINING MOMENTUM SINCE JANUARY THE PRICES OF SOME COMPUTER SYSTEMS HAVE FALLEN AS MUCH AS 40 PRICES HAD BEEN DROPPING STEADILY FOR SEVERAL YEARS BUT THEY BEGAN A STEEP DIVE LAST JUNE WHEN COMPAQ COMPUTER CORP BEGAN SLASHING ITS PRICES WE'RE IN A CUTTHROAT INDUSTRY WHERE THE MARGINS HAVE BEEN IN FREE FALL FOR YEARS WITH NO INDICATIONS THAT IT'S GOING TO SLOW DOWN SAID JOHN SCULLEY APPLE'S CHAIRMAN AND CHIEF EXECUTIVE ADDED ED ANDERSON PRESIDENT OF COMPUTERLAND CORP A BIG PC RETAILER BASED IN PLEASANTON CALIF THERE'S A WHOLE LOT OF BAD CRAZINESS AROUND PRICING RIGHT NOW APPLE DIDN'T GIVE SPECIFIC ESTIMATES BUT SEVERAL ANALYSTS DROPPED THEIR NETINCOME PROJECTIONS FOR THE SECOND HALF TO AROUND 170 A SHARE FROM ABOUT 205 A SHARE IN LAST YEAR'S SECOND HALF APPLE EARNED 188 A SHARE WALL STREET NOW FORECASTS THAT APPLE'S FULLYEAR EARNINGS WILL RANGE FROM ROUGHLY 390 TO 4 DOWN FROM EARLIER PROJECTIONS THAT APPLE WOULD EARN ABOUT 430 A SHARE IN ITS LAST FISCAL YEAR APPLE EARNED 5304 MILLION OR 433 A SHARE ON SALES OF 71 BILLION RENEWED PRICEWAR WORRIES BATTERED APPLE'S STOCK AND RATTLED SHARES OF ITS COMPETITORS AS WELL IN OVERTHECOUNTER TRADING APPLE TUMBLED 525 A SHARE OR 11 TO CLOSE AT 4425 IT WAS THE OTC VOLUME LEADER WITH 105 MILLION SHARES TRADED SINCE LAST FRIDAY APPLE SHARES HAVE SLID ABOUT 20 FROM 5675 A SHARE COMPAQ YESTERDAY SLIPPED TO 5375 DOWN 4375 A SHARE OR 75 IN NEW YORK STOCK EXCHANGE TRADING DELL COMPUTER CORP ANOTHER CHAMPION OF PRICE CUTTING THAT HAS BEEN BATTERED LATELY ALSO EDGED DOWN 75 CENTS TO CLOSE AT 20 A SHARE IN OVERTHECOUNTER TRADING PC PRICES AREN'T FALLING NOW AS FAST AS THEY WERE EARLIER IN THE YEAR BUT THEIR CONTINUED SLIDE CONFOUNDS MANY INDUSTRY EXPERTS WHO HAD FELT THEY HAD TO BE CLOSE TO BOTTOMING OUT SEVERAL FUNDAMENTAL FACTORS ARE STILL PUSHING PRICES DOWN AND MAY CONTINUE TO DO SO FOR SOME TIME INDUSTRY CAPACITY REMAINS HIGH EVEN AS SOME SMALLER PC MAKERS DIE OFF ONE REASON IS THAT BIG COMPANIES THAT IN THE PAST RELIED HEAVILY ON MAINFRAMES AND MINICOMPUTERS INTERNATIONAL BUSINESS MACHINES CORP AND DIGITAL EQUIPMENT CORP AMONG OTHERS ARE REFOCUSING ON PCS THEY REALIZE PCS ARE A BIG PART OF THEIR FUTURE AND IT'S DO OR DIE FOR THEM SAID JOHN ROSSI AN ANALYST WITH ROBERTSON STEPHENS & CO SO THE PC CAST IS CHANGING BUT CAPACITY STAYS HIGH THE FRANTIC PACE OF TECHNOLOGICAL CHANGE PUTS PRESSURE ON PRICING AS WELL AS PC MAKERS CHURN OUT FASTER FANCIER MACHINES AND CONSUMERS DEMAND CHEAPER MORE POWERFUL COMPUTERS AS THE NEW PRODUCTS COME OUT COMPANIES SLASH PRICES ON OLDER ONES TO CLEAR THEM OUT EVENTUALLY THE PRICE CUTTING BLEEDS INTO HIGHEREND MODELS IT'S HARD TO CONFINE PRICE CUTTING TO THE LOW END ONCE IT REALLY GETS ROLLING SAID LAURA CURRAN AN ANALYST WITH MERRIN INFORMATION SERVICES THE RESULT SINCE JAN 1 PRICES FOR SOME PC AND APPLE MACINTOSH MODELS HAVE FALLEN 35 OR MORE FOR EXAMPLE APPLE'S MACINTOSH IIVX WHICH SOLD FOR ROUGHLY 2800 IN JANUARY NOW SELLS FOR ABOUT 1800 A COMPARABLE IBM 386 CLONE THAT SOLD FOR ABOUT 1400 IN JANUARY IS DOWN TO ABOUT 1000 MACINTOSH'S CENTRIS 610 SOLD FOR ABOUT 2200 WHEN IT WAS INTRODUCED IN FEBRUARY BUT IT'S PRICED AT ABOUT 2000 NOW A COMPARABLE IBM 486 CLONE WHICH WENT FOR 1700 IN JANUARY SELLS FOR ABOUT 1500 NOW IN THE PAST APPLE PRODUCTS WERE ALWAYS ABLE TO MAINTAIN A HEALTHY PREMIUM OVER COMPARABLE IBM CLONES MAINLY BECAUSE MANY CONSUMERS CONSIDER APPLE MACHINES EASIER TO USE BUT ANALYSTS SAY THE INCREASINGLY ADVANCED VERSIONS OF MICROSOFT INC'S POPULAR WINDOWS SOFTWARE WHICH ALLOWS IBMTYPE PCS TO MIMIC MANY OF APPLE'S OPERATING FEATURES ARE CUTTING INTO APPLE'S ABILITY TO CHARGE PREMIUMS APPLE'S BUSINESS PROPOSITION HAS CHANGED IN THAT CUSTOMERS DON'T SEEM WILLING TO PAY THE KIND OF PREMIUM OVER WHAT THEY EXPECT TO PAY FOR COMPETITIVE OFFERINGS SAID BRUCE LUPATKIN AN ANALYST WITH HAMBRECHT & QUIST APPLE HAS RESPONDED WITH A STRATEGY OF BUILDING MARKET SHARE BY SLASHING PRICES ON EXISTING MODELS AND INTRODUCING A FLURRY OF PRODUCTS BUT THE RESULTS HAVE BEEN MIXED SOME NEW MACHINES LIKE APPLE'S NOTEBOOK COMPUTER POWERBOOK HAVE BEEN BIG HITS BUT APPLE DEALERS SAY THAT THERE ARE NOW SO MANY PRODUCTS IN THE LINE THAT SOME CUSTOMERS HAVE BECOME CONFUSED BY THE LACK OF CLEAR CHOICES WHILE UNIT SALES HAVE BEEN STRONG AND MARKET SHARE HAS INCREASED MARGINS HAVE SHRIVELED FROM MORE THAN 40 EARLIER IN THE YEAR TO ABOUT 36 NOW ANALYSTS SAID MEANWHILE APPLE'S COSTS REMAIN RELATIVELY HIGH WITH SELLING AND GENERAL ADMINISTRATIVE EXPENSES AT ABOUT 22 OF SALES AT COMPAQ THE RATIO IS 11 SAID MR LUPATKIN THAT PORTENDS COST CUTTING AT APPLE IN COMING QUARTERS HE AND OTHER ANALYSTS SAID ONE POSSIBLE TARGET FOR TRIMMING APPLE'S BELOVED RESEARCH AND DEVELOPMENT BUDGET CRUCIAL TO PRODUCT INNOVATION BUT EXPENSIVE AT MORE THAN 602 MILLION IN 1992 APPLE'S STUMBLE RAISES THE STAKES FOR THE INTRODUCTION OF SUCH PRODUCTS AS COMPUTERS BASED ON THE POWER PC A HIGHPOWERED MICROPROCESSOR APPLE IS DEVELOPING WITH MOTOROLA INC AND IBM THAT CHIP IS DESIGNED TO ENABLE APPLE TO TAKE ON WINDOWS NT A NEW HIGHPOWERED OPERATING SYSTEM FROM MICROSOFT THAT RUNS ON INTEL CORP'S RECENTLY INTRODUCED PENTIUM CHIP POWER PC IS SCHEDULED TO BEGIN SHIPPING EARLY NEXT YEAR POWER PC IS ABSOLUTELY CRUCIAL FOR APPLE NOW SAID KEN KIRCH PRESIDENT OF COMPUTERWARE A COMPUTER RETAILER BASED IN PALO ALTO CALIF THAT SELLS APPLE PRODUCTS EXCLUSIVELY ADDED MR LUPATKIN IT'S CRITICAL THAT APPLE START GETTING SOME RETURN ON ALL THE MONEY IT'S INVESTED IN R&D LATELY SEPARATELY MOODY'S INVESTORS SERVICE INC CITING APPLE'S EARNINGS AND PROFIT MARGIN PROBLEMS SAID IT WILL REVIEW ITS RATINGS ON 500 MILLION OF APPLE DEBT FOR A POSSIBLE DOWNGRADE G PASCAL ZACHARY CONTRIBUTED TO THIS ARTICLE 9306100001 930610 DR BROWN TREATS WHAT AILS THE RIDES AT AMUSEMENT PARKS HE HELPED UNIVERSAL STUDIOS TAKE THAT QUEASY FEELING OUT OF BACK TO THE FUTURE' BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD WHEN UNIVERSAL STUDIOS BEGAN DESIGNING ITS BACK TO THE FUTURE FLIGHTSIMULATOR RIDE FOR ITS THEME PARK HERE IT HOPED TO GIVE TOURISTS THE SENSATION OF SOARING THROUGH SPACE AND TIME IN A SOUPEDUP DELOREAN JUST LIKE IN THE MOVIES BUT TIME TRAVEL UNIVERSAL EXECUTIVES DISCOVERED AFTER TRYING OUT A PROTOTYPE IS BEST DONE ON AN EMPTY STOMACH SO THE BIG SHOTS SUMMONED DOC BROWN NOT THE MAD SCIENTIST PLAYED BY CHRISTOPHER LLOYD IN THE THREE BACK TO THE FUTURE FILMS BUT RICHARD H BROWN PHD A 51YEAROLD ORTHOPEDIC RESEARCHER IN CLEVELAND WHO IS AN EXPERT IN MAKING SURE THAT AMUSEMENT PARK RIDES DON'T MAKE PEOPLE THROW UP WHEN HE ISN'T IN HIS SURGICAL GOWN MONITORING THE MACHINES THAT TRACK THE CENTRAL NERVOUS SYSTEMS OF PATIENTS UNDERGOING SPINAL OR PELVIC RECONSTRUCTIONS DR BROWN IS IN HIS BLUE SPORT JACKET GRAY SLACKS AND BLACK COWBOY BOOTS TAMING WILD RIDES THERE'S A LITTLE BOY IN ME SAYS DR BROWN WHO CUT HIS TEETH AS A TEENAGER IN NEW YORK ON THE CONEY ISLAND CYCLONE ROLLER COASTER A RIDE THAT SOME BRAVE SOULS LIVE TO REGRET THE NEW RIDE AT UNIVERSAL IS PRETTY SCARY TOO LIKE AN AIRPLANE IN BAD TURBULENCE BUT IT DOESN'T ACTUALLY GO ANYWHERE I LIKE SEEING THESE RIDES COME TO LIFE HE SAYS ARMED WITH AN ALUMINUM HALIBURTON ATTACHE CASE FULL OF EQUIPMENT TO OPERATE ACCELEROMETERS DR BROWN MAKES HOUSE CALLS OF A SORT ONE TRIP ON THE BACK TO THE FUTURE RIDE PROTOTYPE AND DR BROWN KNEW INSTANTLY WHY UNIVERSAL EXECUTIVES WERE LOSING THEIR COOKIES HIS DIAGNOSIS CONFLICT THEORY NAUSEOGENIC MOTIONS REFLECTING A LACK OF SYNCHRONIZATION BETWEEN THE VISUAL AND THE VESTIBULAR SYSTEMS IN OTHER WORDS MOTION SICKNESS IT SEEMS THE TEST FILM ON THE SCREEN THE EXECUTIVES WERE WATCHING DIDN'T PRECISELY MATCH THE MOVEMENTS OF THE SIMULATOR CARS THUS THROWING THE SENSES OF SIGHT AND MOTION INTO CONFLICT THE BRAIN READS THIS DISORIENTATION AS A SIDEEFFECT OF POISON AND TELLS THE STOMACH TO GET RID OF IT FLIGHT SIMULATORS CAN BE ESPECIALLY GUTWRENCHING AS WALT DISNEY CO'S IMAGINEERS FOUND OUT WHILE PROGRAMMING THEIR STAR TOURS ATTRACTION AT DISNEYLAND IN 1986 THE RIDE WAS REPROGRAMMED TO GET RID OF ALL THE REALLY QUEASY MOMENTS THEN AS A JOKE DISNEY GAVE EMPLOYEES STAR TOURS AIRSICKNESS BAGS WHEN THEY TRIED OUT THE RIDE WITH THEIR FAMILIES UNIVERSAL'S SOLUTION BASED PARTLY ON DR BROWN'S ADVICE WAS TO SHOOT ITS FILM AND PROGRAM THE MOVEMENTS OF THE DELOREANS SIMULTANEOUSLY RATHER THAN PROGRAM THE CARS AFTER THE FILMING DR BROWN ALSO SUGGESTED TO THE MOVIE MAKERS THAT THEY MAKE SURE THE SCREEN ALWAYS HAS IN VIEW SOME OBJECT THAT RIDERS CAN FOCUS ON TO KEEP FROM GETTING DIZZY A BUILDING A CLOCK A TYRANNOSAUR ANYTHING SO YOUR MEMORY CAN PROCESS IT AND SAY AH HAH THIS WAY IS UP' HE SAYS THE FIRST VERSION OF BACK TO THE FUTURETHE RIDE WAS BORN AT UNIVERSAL STUDIOS FLORIDA IN ORLANDO TWO YEARS AGO WITH DR BROWN ATTENDING THE DELIVERY THE NEW INCARNATION WHOSE MOTION IS MORE POWERFUL OPENS SATURDAY AT UNIVERSAL STUDIOS HOLLYWOOD A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO DR BROWN AND OTHERS SUCCEEDED IN SMOOTHING OUT THE STOMACHCHURNING BUMPS IN THE NEW MODEL AND TO JUDGE FROM THE GIDDY EXPRESSIONS OF EXECUTIVES CURRENTLY TESTFLYING THE DELOREANS DRAMAMINE WON'T BE REQUIRED BUT OXYGEN MAY HAVE BEEN IN ORDER WHEN THEY SAW THE BILL FOR THE NEW ATTRACTION 70 MILLION DR BROWN WON'T SAY HOW MUCH HIS CONSULTING SERVICES ADDED TO THE TAB AS AMUSEMENT PARK RIDES HAVE BECOME MORE LIKE SUPERSONIC AIRCRAFT PARKS HAVE HAD TO RELY INCREASINGLY ON DR BROWN AND A HANDFUL OF OTHER TROUBLESHOOTERS THERE'S ONLY SO MUCH THE HUMAN BODY CAN TAKE SAYS RICHARD COULTER A FORMER THEME PARK EXECUTIVE WHO HAS A CONSULTING FIRM IN DELAWARE OHIO THE QUESTION IS HOW MUCH DO WE WANT TO TAME A RIDE BEFORE DR BROWN ENTERED THE FIELD IN 1972 BIOMECHANICAL TESTING OF RIDES SIMPLY WASN'T DONE BACK THEN HE WAS AT CASE WESTERN RESERVE UNIVERSITY IN CLEVELAND WRITING HIS MASTER'S THESIS AN INSTRUMENTATION SYSTEM FOR TWOPLANE RADIOGRAPHIC ANALYSIS MR COULTER WHO WAS SAFETY DIRECTOR FOR CEDAR POINT AMUSEMENT PARK IN NEARBY SANDUSKY CONTACTED THE UNIVERSITY TO HELP SOLVE A PROBLEM WITH A NEW ROLLER COASTER THE RIDE WAS WELL IT WAS ROUGH SAYS MR COULTER RIDERS WERE LEAVING NOT REALLY PLEASED IN FACT SEVERAL TEENAGE GIRLS LEFT WITH BROKEN COLLARBONES DR BROWN RECALLS FIGURING THAT THE FORCES ON A ROLLER COASTER COULD BE MEASURED LIKE THOSE ON AN AIRCRAFT DR BROWN HIT UPON THE IDEA OF RIGGING THE CARS WITH ACCELEROMETERS WORKING OUT OF HIS BASEMENT HE JERRYBUILT A TEST SYSTEM HIS CONSEQUENT READINGS INDICATED THAT AT ONE POINT ON THE TRACK THE TRAIN WAS ROLLING TOO FAST WITH A TILT THAT CAUSED THRILL SEEKERS OF A CERTAIN HEIGHT TO WHACK THEIR SHOULDERS AGAINST THE SIDES OF THE CARS ADJUSTING THE INCLINE OF THE TRACK AND PUTTING BETTER PADDING IN THE CARS SOLVED THE WHIPLASH PROBLEM SINCE THEN DR BROWN HAS WORKED OUT THE BUGS IN ABOUT 100 RIDES AT PARKS AROUND THE COUNTRY WHILE WORKING FOR A LIVING AS CHIEF OF ORTHOPEDIC RESEARCH AT SAINT LUKE'S MEDICAL CENTER IN CLEVELAND IT TAKES A CASTIRON STOMACH FOR HIS UNUSUAL AVOCATION ESPECIALLY SINCE HE RIDES A ROLLER COASTER 70 TIMES OR MORE DURING TESTING I'VE NEVER BEEN AIRSICK OR SEASICK SAYS THE FORMER NAVY MAN WHO IS ALSO A DIVER AND A PILOT HE DOESN'T DO MUCH FLYING ANYMORE BUT HE USED TO DO AERIAL ACROBATICS A MEMBER OF THE AMERICAN SOCIETY OF TESTING MATERIALS IN PHILADELPHIA DR BROWN ALSO HELPED FORM A SPECIAL COMMITTEE FOR AMUSEMENT RIDES AND DEVICES TO PONDER SUCH MATTERS AS RIDEVEHICLE PADDING AND PINCH POINTS THE ODDS OF LEAVING A THEME PARK IN ONE PIECE ARE FAR BETTER THAN THEY ARE WHEN YOU GO OUT FOR A DRIVE IN YOUR CAR THE US CONSUMER PRODUCT SAFETY COMMISSION ESTIMATES THAT OF 250 MILLION AMUSEMENT PARK VISITORS 7700 PEOPLE WERE HOSPITALIZED WITH INJURIES SUFFERED ON RIDES IN 1991 MOSTLY FROM HORSING AROUND BUT JUST ONE GRUESOME PUBLICIZED ACCIDENT CAN MEAN A LEGAL AND PUBLICRELATIONS MELTDOWN SO THEME PARKS GLADLY SHELL OUT THOUSANDS OF DOLLARS TO SAFETYTEST THEIR RIDES BEFORE A SINGLE PAYING VISITOR CLIMBS ABOARD A NEW ROLLER COASTER ANY NUMBER OF INANIMATE OBJECTS MAY HAVE TAKEN THE RIDE TO TEST THE SHOCKWAVE COASTER AT SIX FLAGS OVER TEXAS ONE ENGINEER BOUGHT A COUPLE OF HAMS AT THE LOCAL GROCERY STORE AND OBSERVED THEM AS THEY RODE AROUND TO SEE HOW FAR OFF THE SEAT THE MEAT WILL FLY SAYS HAROLD HUDSON SIX FLAGS' SENIOR VICE PRESIDENT FOR ENGINEERING AND DESIGN SOME TESTERS USE MANNEQUINS WIRED WITH SENSORS BUT DR BROWN THINKS THEY AREN'T ACCURATE AND INSISTS ULTIMATELY ON TAKING HIS OWN TEST FLIGHTS I'M THE ONLY DUMMY THAT RIDES HE SAYS 9306100063 930513 THIS IS NO WAY TO PRESERVE HISTORY BY JAMES BOVARD THIS IS NATIONAL PRESERVATION WEEK WHILE AMERICANS HAVE COMMENDABLY BECOME MORE INTERESTED IN THEIR PAST HISTORIC PRESERVATION ITSELF HAS UNFORTUNATELY BECOME A PRETEXT FOR MASS CONFISCATION IN HUNDREDS OF LOCALES THE OLDER A HOUSE BECOMES THE LESS RIGHT HOMEOWNERS HAVE TO CONTROL THEIR OWN PROPERTY UNLESS CURRENT TRENDS ARE REVERSED THE HISTORIC PRESERVATION MOVEMENT COULD SEIZE CONTROL OF MILLIONS OF AMERICAN BUILDINGS PRESERVATIONISTS HAVE PROGRESSED FROM TARGETING SPECIFIC BUILDINGS TO TARGETING NEIGHBORHOODS TO TARGETING ENTIRE CITIES FOR STRICT GOVERNMENTENFORCED CONTROLS ESCONDIDO CALIF DESIGNATED ALL BUILDINGS MORE THAN 50 YEARS OLD HISTORIC STRUCTURES AND PROHIBITED OWNERS FROM DEMOLISHING THEM WITHOUT PAYING A LARGE DEMOLITION FEE TO THE CITY GOVERNMENT THE OWNER OF ONE RICKETY BOARDEDUP OLD SHACK WAS STOPPED FROM SELLING IT EVEN THOUGH THE OWNER THREE TIMES OFFERED TO DONATE THE SHACK TO THE CITY AS LONG AS THE CITY WOULD PAY TO MOVE THE SHACK AWAY THE CITY GOVERNMENT REJECTED HIS OFFER IN THE 1950S INTELLECTUALS DENOUNCED PREVAILING SUBURBAN ARCHITECTURAL STYLES AS PROOF OF THE SOULLESSNESS OF AMERICAN CULTURE IN THE 1990S ACTIVISTS ON HISTORIC PRESERVATION BOARDS ARE DECREEING THAT 1950S NEIGHBORHOODS ARE SO SPECIAL THAT LOCAL POLICE MUST PROHIBIT ANY HOMEOWNERS FROM IMPROVING THEIR HOMES' EXTERIORS IN HANOVER VA THE LOCAL GOVERNMENT IMPOSED STRICT PRESERVATION CONTROLS OVER A 43ACRE TRACT SURROUNDING AN OLD COURTHOUSE ONE OUTRAGED WOMAN RETALIATED BY PLACING TACKY PINK FLAMINGOES ON HER FRONT LAWN ELMYRA TAYLOR COMPLAINED I CANNOT PAINT MY HOUSE I CANNOT PAINT THE FENCE I CANNOT REMOVE TREES OR TREE LIMBS WITHOUT PERMISSION FROM AN ARCHITECTURAL REVIEW BOARD AND COUNTY SUPERVISORS WHO HAVE BEEN MOST UNREASONABLE HISTORIC PRESERVATION HAS ALSO BECOME A TOOL TO DRIVE OUT POOR MINORITIES A HUD INVESTIGATION CONCLUDED IN 1988 THAT A DECISION BY ALEXANDRIA VA TO DESIGNATE A 50BLOCK BLACK NEIGHBORHOOD AS A HISTORIC DISTRICT WAS SPECIFICALLY INTENDED TO DISPLACE LOW AND MODERATE INCOME BLACKS FROM THEIR HOMES IN ORDER TO UPGRADE PROPERTIES AND TO PROMOTE THE RISE OF PROPERTY VALUES AND ATTRACTION OF NEW RESIDENTS IN ARLINGTON COUNTY VA BLACKS IN THE HISTORIC MAYWOOD NEIGHBORHOOD BITTERLY PROTESTED IN 1991 ABOUT BEING REQUIRED TO SUBMIT 10 COPIES OF FORMS TO GET PERMISSION TO INSTALL AIR CONDITIONING IN THEIR HOMES IN JANUARY 1991 THE WASHINGTON DC HISTORIC PRESERVATION REVIEW BOARD IMPOSED HISTORIC LANDMARK STATUS ON A BOARDEDUP DETERIORATING FOURSTORY APARTMENT BUILDING ON A STRETCH OF MASSACHUSETTS AVE LONG SINCE GONE TO URBAN HELL THE BOARD HAILED THE APARTMENT BUILDING AS AN EXCELLENT EXAMPLE OF THE POPULAR TRANSFERENCE OF MANY OF THE FORMS OF THE TRADITIONAL WASHINGTON ROWHOUSE TO EARLY APARTMENT HOUSE DESIGN BUT THE BUILDING IS NOW A CRUMBLING FLOPHOUSE THAT HAS LONG BEEN USED BY VAGRANTS DRUG USERS AND PROSTITUTES NINE FIRES OCCURRED THERE OVER A TWOYEAR PERIOD IRONICALLY THE BUILDING SITS ACROSS FROM A BOARDEDUP FIRE STATION THE BUILDING'S OWNER SEEKS TO TEAR IT DOWN AND REPLACE IT WITH COMMERCIAL OFFICE SPACE BUT IS TIED UP IN COURT BATTLES STEMMING FROM THE BUILDING'S HISTORIC STATUS HISTORIC PRESERVATION JUDGMENTS INCREASINGLY THREATEN FREEDOM OF RELIGION IN 1991 WASHINGTON DC EFFECTIVELY IMPOSED A PRELIMINARY INJUNCTION AGAINST A CHRISTIAN SCIENCE CHURCH TO PREVENT IT FROM MODIFYING A BUNKERLIKE CHURCH AND OFFICE BUILDING BUILT IN 1971 WHILE THE STRUCTURES WERE BEING CONSIDERED FOR HISTORIC DESIGNATION THE CHURCH EXEMPLIFIES THE DEPRAVITY OF THE BRUTAL SCHOOL OF ARCHITECTURE THE CHRISTIAN SCIENTISTS HAVE ALREADY SPENT TENS OF THOUSANDS OF DOLLARS IN LEGAL FEES FIGHTING THIS CASE CHICAGO PASSED A LANDMARKS ORDINANCE THAT ALLOWED RELIGIOUS PROPERTIES TO EXEMPT THEMSELVES FROM HISTORIC DESIGNATION THE NATIONAL TRUST FOR HISTORIC PRESERVATION WAS OUTRAGED AND WARNED THAT SUCH AN ORDINANCE WAS UNCONSTITUTIONAL BECAUSE IT HAS THE PURPOSE AND EFFECT OF ENDORSING RELIGION IN VIOLATION OF THE FIRST AMENDMENT ESTABLISHMENT CLAUSE IN OTHER WORDS IF THE GOVERNMENT IS EFFECTIVELY PERSECUTING PROPERTY OWNERS IN GENERAL IT IS UNCONSTITUTIONAL IF IT DOES NOT ALSO PERSECUTE CHURCHES IN 1991 TEXAS PASSED A STATUTE REQUIRING ANY OWNER WHO INTENDED TO DAMAGE A DESIGNATED HISTORIC LANDMARK IN ANY WAY TO GET PERMISSION FROM THE LOCAL GOVERNMENT OR FROM THE TEXAS HISTORICAL COMMISSION BEFORE ACTING AS ANICE READ OF THE COMMISSION WROTE THOSE NOT SECURING THE REQUIRED PERMITS WOULD BE REQUIRED TO RECONSTRUCT THE STRUCTURE OR TO MAKE JUST COMPENSATION TO THE CITY OR TO THE TEXAS HISTORICAL COMMISSION OF AN AMOUNT EQUAL TO THE VALUE OF THE STRUCTURE THE TEXAS STATUTE VIVIFIES THE REAL MEANING OF HISTORIC PRESERVATION ONCE CONTROLS ARE IMPOSED GOVERNMENT BECOMES THE DE FACTO OWNER AND THE PROPERTY OWNER MUST COMPENSATE THE GOVERNMENT FOR ANY DAMAGE HE DOES TO THE PROPERTY POWER LUST SOMETIMES APPEARS TO BE AT THE BOTTOM OF THE PRESERVATION MOVEMENT LAURIE BECKELMAN CHAIRWOMAN OF NEW YORK CITY'S LANDMARKS PRESERVATION COMMISSION HAILED A COURT DECISION AS AFFIRMING THE COMMISSION'S ABSOLUTE POWER TO DESIGNATE AND REGULATE RELIGIOUS PROPERTIES AS LANDMARKS CHUCK GEITNER CHAIRMAN OF THE NAPERVILLE ILL HISTORIC DISTRICT COMMISSION WITH JURISDICTION OVER A 60BLOCK AREA ANNOUNCED IN 1991 WE LISTEN TO PEOPLE AND WHEN WE THINK IT'S APPROPRIATE WE GRANT THEM THE POWER TO DO WHAT THEY WISH PRESERVATION ADVOCATES SOMETIMES SOUND AS IF THEY SIMPLY WISH TO SUMMON THE LOCAL POLICE TO ENFORCE THEIR OWN SENTIMENTALITY WASHINGTON POST ARCHITECTURAL CRITIC BENJAMIN FORGEY WROTE LAST YEAR THERE'S A SIMPLE TEST ONE CAN APPLY TO DETERMINE WHETHER GOVERNMENT SHOULD IMPOSE PRESERVATION CONTROLS STAND IN FRONT OF SUCH A BUILDING CLOSE YOUR EYES AND PICTURE IT GONE IF THE RESULT IS THAT YOU WOULD REALLY REALLY MISS IT THEN IT MAY NEED HELP MANY HISTORIC PRESERVATION COMMISSIONS APPEAR SO EAGER TO SWEEP MORE HOUSES UNDER THEIR JURISDICTION THAT THEY HAVE LITTLE OR NO IDEA HOW MANY HOMES' EXTERIORS THEY ALREADY CONTROL MARY ANN ROLLAND A HISTORIC PRESERVATION PLANNER FOR MONTGOMERY COUNTY MD COULD NOT PROVIDE EVEN A ROUGH ESTIMATE OF HOW MANY HOMES ARE COVERED BY HISTORIC PRESERVATION RESTRICTIONS IN THE COUNTY THOUGH SHE WAS ENTHUSIASTIC THAT THE COUNTY HAD JUST IMPOSED HISTORIC CONTROLS ON 900 HOMES IN TAKOMA PARK MD SOME PRESERVATIONISTS HAVE ADVOCATED THAT BUILDINGS ROUTINELY BE DEEMED HISTORIC WHEN THEY BECOME 50 YEARS OLD YET ACCORDING TO THE US CENSUS BUREAU THERE ARE MORE THAN 18 MILLION HOUSING UNITS IN THE US BUILT BEFORE 1940 ALMOST 20 OF THE NATION'S HOUSING STOCK DOES AN INDIVIDUAL'S RIGHT TO CONTROL HIS OWN PROPERTY AUTOMATICALLY DECLINE BY TWO PERCENTAGE POINTS A YEAR AMERICA'S CHURCHES AND HOMEOWNERS HAVE ENOUGH PROBLEMS WITHOUT BEING SUBJECTED TO A DICTATORSHIP OF GADFLIES TRAMPLING THE BILL OF RIGHTS PERHAPS AMERICA'S MOST IMPORTANT HISTORIC ACHIEVEMENT IS NO WAY TO PRESERVE HISTORY MR BOVARD WRITES OFTEN ON PUBLIC POLICY SEE RELATED LETTERS LETTERS TO THE EDITOR LANDMARK DECISIONS WSJ JUNE 10 1993 9305130063 YY93 MM06 9306090150 930609 BSN GROUPE TO ACQUIRE STAKE WELLINGTON NEW ZEALAND BSN GROUPE A FRENCHBASED FOOD AND BEVERAGE CONCERN ANNOUNCED IT IS ACQUIRING A 20 STAKE IN LOCAL FOOD COMPANY BEST CORP FOR 221 MILLION NEW ZEALAND DOLLARS US118 MILLION PAUL HULJICH BEST CORP'S CHAIRMAN SAID BSN GROUPE WILL BUY 68 MILLION NEW SHARES AND AN ADDITIONAL 17 MILLION SHARES THROUGH ACQUISITION OF THE RIGHTS FOR A CASH ISSUE FROM BEST CORP'S MAJOR SHAREHOLDER NEW ZEALAND'S HULJICH FAMILY BSN GROUPE WILL PAY NZ325 A SHARE HE SAID BEST CORP REPORTED A NZ34 MILLION OPERATING PROFIT AFTER TAX FOR ITS 12 MONTHS ENDED MARCH 31 1992 9306090149 930609 WHO'S NEWS TRIMBLE NAVIGATION LTD TRIMBLE NAVIGATION LTD SUNNYVALE CALIF JOHN H BARNET 58 YEARS OLD FORMERLY CHIEF FINANCIAL OFFICER OF CENTEX TELEMANAGEMENT INC WAS NAMED CHIEF FINANCIAL OFFICER OF THIS MAKER OF SATELLITE NAVIGATION AND COMMUNICATIONS SYSTEMS HE SUCCEEDS WILLIAM STIRLEN WHO RESIGNED IN FEBRUARY TO PURSUE OTHER INTERESTS 9306090148 930609 WHO'S NEWS PARAMOUNT COMMUNICATIONS INC PARAMOUNT COMMUNICATIONS INC NEW YORK JOHN A WENTWORTH 33 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT OF MEDIA RELATIONS FOR THE PARAMOUNT TELEVISION GROUP A DIVISION OF THIS PUBLISHING AND ENTERTAINMENT CONCERN MR WENTWORTH HAD BEEN VICE PRESIDENT OF ADVERTISING PUBLICITY AND PROMOTION FOR THE PARAMOUNT NETWORK TELEVISION DIVISION 9306090147 930609 ON THE OTHER HAND MANY PEOPLE THINK PRESIDENTS MAKE TOO MUCH BY CHRISTI HARLAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HOW MANY CHIEF EXECUTIVES CAN CLAIM THEY HAVE A TOUGHER JOB THAN BILL CLINTON NOT MANY SAYS MURRAY KATZ A RETIRED GOVERNMENT WORKER WHO BELIEVES NO CORPORATE CEO DESERVES TO BE PAID MUCH MORE THAN THE NATION'S CHIEF EXECUTIVE MR KATZ THINKS 150 OF THE PRESIDENT'S SALARY OR 300000 OUGHT TO BE PLENTY THAT'S THE GIST OF A SHAREHOLDER RESOLUTION THAT LANDED IN THE PROXY STATEMENTS OF 13 COMPANIES INCLUDING MESA INC OCCIDENTAL PETROLEUM CORP AND UNISYS CORP IN RESPONSE TO MR KATZ'S RESOLUTION ALL OF THE COMPANIES HAVE ARGUED THAT PRESIDENT CLINTON'S PERQUISITES SUCH AS THE WHITE HOUSE AIR FORCE ONE AND AN INHOUSE BOWLING ALLEY BOOST HIS COMPENSATION WAY OVER 300000 BUT MR KATZ'S PAYCAP RESOLUTION HAS HIT A SENSITIVE CHORD WINNING AN AVERAGE 145 OF THE SHARES VOTED AT THE NINE COMPANIES THAT HAVE COUNTED BALLOTS TO DATE ORDINARILY THAT TYPE OF COMPENSATION PROPOSAL DOESN'T DO VERY WELL SAYS RALPH WHITWORTH EXECUTIVE DIRECTOR OF THE UNITED SHAREHOLDERS ASSOCIATION A WASHINGTONBASED COALITION OF SMALL HOLDERS THE TALLY IS MORE SURPRISING BECAUSE MR KATZ LACKS THE RESOURCES AND MUSCLE OF BIG INSTITUTIONAL INVESTORS I'M JUST A SMALL STOCKHOLDER THE SILVER SPRING MD RESIDENT SHRUGS I'M NOT GOING TO MAKE A DENT BECAUSE I DON'T HAVE ANY POWER NO DENTS BUT MAYBE A DING HERE AND THERE AT CIPSCO INC SPRINGFIELD ILL 247 OF THE SHAREHOLDERS WEIGHED IN FOR MR KATZ'S RESOLUTION THE VOTE WAS PARTICULARLY JARRING FOR THE UTILITY BECAUSE OF THE DEARTH OF PERKS FOR EXECUTIVES HOWEVER CIPSCO CEO AND PRESIDENT CL GREENWALT TOOK HOME 317375 LAST YEAR MR KATZ AND HIS PROPOSAL SPARKED A SMALL UPROAR LAST MONTH AT THE ANNUAL MEETING OF FEDERAL REALTY TRUST A MCLEAN VA REAL ESTATE INVESTMENT TRUST WHEN THE GENERAL COUNSEL TRIED TO CUT SHORT MR KATZ'S REMARKS CATCALLERS YELLED DOWN WITH THE ATTORNEY MR KATZ'S PROPOSAL FAILED BUT IT PULLED IN VOTES REPRESENTING MORE THAN THREE MILLION SHARES OR 144 OF THE TOTAL CAST HE ALSO PICKED UP SOME FANS I THINK THE SALARIES AND COMPENSATION OF THE OFFICERS OF THIS COMPANY ARE OBSCENE SAID SHAREHOLDER MAXWELL HARWAY HOLDER CHESTER MYSLICKI SUGGESTED THAT CEO STEVEN GUTTMAN'S 1 MILLIONPLUS COMPENSATION BE CUT TO SOMETHING MAYBE JUST A LITTLE PORNOGRAPHIC OR RACY 9306090146 930609 FIRST COMMERCIAL TO BUY 2 BANKS LITTLE ROCK ARK FIRST COMMERCIAL CORP SAID IT AGREED TO BUY TWO TEXAS COMMERCE BANCSHARES INC BANKS IN EAST TEXAS FOR 28 MILLION MARKING THE COMPANY'S SECOND VENTURE INTO THE TEXAS BANKING MARKET THIS YEAR THE BANK HOLDING COMPANY SAID IT WILL PAY A PREMIUM OF 775 MILLION FOR THE BANKS IN LONGVIEW AND NACOGDOCHES TEXAS WHICH HAVE A COMBINED BOOK VALUE OF ABOUT 20 MILLION TEXAS COMMERCE IS A UNIT OF CHEMICAL BANKING CORP IN FEBRUARY FIRST COMMERCIAL COMPLETED ITS ACQUISITION OF BANKS IN TYLER AND LUFKIN TEXAS WHEN THE PROPOSED ACQUISITION IS COMPLETED FIRST COMMERCIAL'S TEXAS ASSETS WILL TOTAL 700 MILLION THE COMPANY SAID 9306090145 930609 WHO'S NEWS ULTIMAP CORP ULTIMAP CORP ST PAUL MINN BRUCE R GILMORE 47YEAROLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER SUCCEEDING DENNIS MATHISEN 53 PRESIDENT OF MARSHALL FINANCIAL GROUP INC WHO CONTINUES AS A DIRECTOR OF THIS PROVIDER OF GEOGRAPHIC INFORMATION SOFTWARE SOLUTIONS JOHN S DONNELLY 58 A MANAGING DIRECTOR OF MARSHALL FINANCIAL WAS NAMED CHAIRMAN OF ULTIMAP ALSO SUCCEEDING MR MATHISEN MR MATHISEN CITED THE CONTINUING TIME DEMANDS OF MARSHALL'S ACTIVITIES AS THE REASON FOR STEPPING DOWN MARSHALL FINANCIAL IS A MAJOR SHAREHOLDER IN ULTIMAP 9306090144 930609 CONTINENTAL AIRLINES TRAFFIC RISES HOUSTON CONTINENTAL AIRLINES SAID ITS MAY PASSENGER TRAFFIC INCREASED 36 THE CARRIER REPORTED REVENUE PASSENGER MILES OF 37 BILLION FOR THE MONTH UP FROM 35 BILLION FOR MAY 1992 A REVENUE PASSENGER MILE IS ONE PAYING PASSENGER FLOWN ONE MILE LOAD FACTOR OR THE PERCENTAGE OF AVAILABLE SEATS FILLED FOR THE MONTH FELL TO 641 FROM 656 FOR THE FIVE MONTHS CONTINENTAL SAID IT FLEW 1696 BILLION REVENUE PASSENGER MILES A SLIGHT DECREASE FROM THE 1707 BILLION MILES FOR THE YEAREARLIER PERIOD LOAD FACTOR FOR THE PERIOD FELL TO 606 FROM 626 9306090143 930609 AMERICA WEST TRAFFIC OFF PHOENIX AMERICA WEST AIRLINES SAID ITS MAY TRAFFIC FELL ALMOST 13 TO 8901 MILLION REVENUE PASSENGER MILES FROM ONE BILLION A YEAR AGO A REVENUE PASSENGER MILE IS ONE PAID PASSENGER FLOWN ONE MILE THE AIRLINE REPORTED AN INCREASE IN LOAD FACTOR OR PERCENTAGE OF AVAILABLE SEATS FILLED TO 623 FROM 615 FOR THE FIRST FIVE MONTHS OF THE YEAR AMERICA WEST FLEW 44 BILLION REVENUE PASSENGER MILES DOWN FROM 49 BILLION A YEAR AGO LOAD FACTOR INCREASED TO 615 FROM 597 THE AIRLINE SAID IT EXPECTS ITS SECOND QUARTER WILL BE AN IMPROVEMENT FROM THE FIRST AMERICA WEST EARNED 21 MILLION OR NINE CENTS A SHARE ON 3166 MILLION IN REVENUE FOR THIS YEAR'S FIRST QUARTER 9306090142 930609 INTERNATIONAL AKZO TO CUT 500 JOBS AMSTERDAM DUTCH CHEMICALS MAKER AKZO NV PLANS TO CUT MORE THAN 500 JOBS AT ITS FIBERS OPERATIONS IN THE NETHERLANDS OVER THE NEXT 12 MONTHS AKZO SAID LAYOFFS CAN'T BE AVOIDED AND BLAMED THE JOB CUTS ON THE RECESSION IN THE TEXTILES AND AUTOMOBILE INDUSTRIES MAJOR MARKETS FOR ITS FIBERS OPERATIONS AKZO'S FIBERS DIVISION HAS BEEN STRUGGLING OVER THE PAST YEARS WITH OVERCAPACITY LOW SELLING PRICES AND STAGNATION OR RECESSION IN EUROPEAN MARKETS 9306090141 930609 CANADIAN HOUSING STARTS OTTAWA CANADIAN HOUSING STARTS FELL 14 IN MAY FROM APRIL TO A SEASONALLY ADJUSTED ANNUAL RATE OF 147600 UNITS CANADA MORTGAGE AND HOUSING CORP A GOVERNMENT AGENCY SAID BUILDERS' REPORTS SHOW THAT CONSTRUCTION OF SINGLEFAMILY DWELLINGS PROBABLY WILL REMAIN SLUGGISH SAID GILLES PROULX THE CORPORATION'S CHIEF ECONOMIST AS A RESULT HOUSING ACTIVITY WILL REMAIN SUBDUED OVER THE SHORT TERM HE SAID 9306090140 930609 WHO'S NEWS JOHNSON CONTROLS INC JOHNSON CONTROLS INC MILWAUKEE CHARLES G CHIP MCCLURE 39YEAROLD VICE PRESIDENT AND GENERAL MANAGER OF THE COMPANY'S AUTOMOTIVE SEATING OPERATIONS IN EUROPE WAS NAMED A CORPORATE VICE PRESIDENT OF THIS MAKER OF BUILDING CONTROLS BATTERIES AUTO SEATS AND PLASTIC CONTAINERS 9306090139 930609 MARGARETTEN FINANCIAL CORP PERTH AMBOY NJ MORTGAGE BANKER MARGARETTEN FINANCIAL CORP SAID ITS TOTAL LOAN PRODUCTION WAS 904 MILLION IN MAY UP 92 FROM MAY 1992 LOAN APPLICATIONS ROSE 44 TO 881 MILLION MARGARETTEN'S LOAN SERVICING PORTFOLIO WAS 149 BILLION AT MAY 31 COMPARED WITH 51 BILLION A YEAR EARLIER 9306090138 930609 DRUGWAR DEATH CARDINAL'S BLOOD TO PURIFY MEXICO BY ROBERT L BARTLEY MEXICO CITY SWITCHING FROM SPANISH TO ENGLISH JUGGLING AN INTERVIEW AND REPEATED PHONE CALLS FINGERING INCOMING MESSAGES DOUBLING UP ON HIS DESK EXCUSING HIMSELF TO THE NEXT ROOM FOR SENSITIVE CONVERSATIONS JORGE CARPIZO MCGREGOR IS OBVIOUSLY A MAN RIDING A WHIRLWIND TOLD HE'S NOW THE MOST IMPORTANT OFFICIAL OF THE MEXICAN GOVERNMENT HE CHUCKLES AND REPLIES I HAVE THE BIGGEST PROBLEM MR CARPIZO IS MEXICO'S ATTORNEY GENERAL AND HIS PROBLEM IS THE FIGHT AGAINST DRUG GANGS WHICH BLAZED INTO HOT WAR WITH THE MAY 24 KILLING OF ONE OF MEXICO'S TWO ROMAN CATHOLIC CARDINALS THE KILLING OF CARDINAL JUAN JESUS POSADAS OCAMPO OF GUADALAJARA NOW PREOCCUPIES ALL MEXICO SUBSEQUENT EVENTS HAVE INCLUDED A CONTROVERSY OVER MR CARPIZO'S EXPLANATION OF THE KILLING AT LEAST 13 ARRESTS THE DISCOVERY OF SOME 20 NARCOTICS SAFE HOUSES AND A NEARLY COMPLETED QUARTERMILE TUNNEL BETWEEN TIJUANA AND SAN DIEGO THE GOVERNMENT HAS OFFERED 5 MILLION IN REWARDS AND PRESIDENT CARLOS SALINAS DE GORTARI HAS PROPOSED CHANGING THE MEXICAN CONSTITUTION TO ALLOW EASIER SEIZURE OF PROPERTY HELD BY DRUG LORDS THE STREETS OF GUADALAJARA HAVE SEEN BOTH BATTLES BETWEEN THE ARMY AND DRUG GUNMEN AND ANTIVIOLENCE MARCHES BY TENS OF THOUSANDS OF CITIZENS WHAT DOES THIS MEXICAN DRAMA MEAN NORTH OF THE RIO GRANDE IN WASHINGTON SOME IN CONGRESS LEAP TO ARGUE THAT BECAUSE OF VIOLENCE THE US SHOULD HOLD BACK ON CLOSER RELATIONS AND THE NORTH AMERICAN FREE TRADE AGREEMENT YET SOUTH OF THE BORDER THE MEXICANS SEE THEMSELVES AS DESERVING PARTNERS SPENDING BLOOD AND MONEY TO HOLD THE FRONT LINE IN A DRUG WAR WAGED PRIMARILY FOR THE BENEFIT OF THE GRINGOS IN THE WAKE OF THE CARDINAL'S KILLING THE NOTORIOUSLY PRESSSHY ATTORNEY GENERAL DEFENDED HIS CONCLUSIONS ON NATIONAL TELEVISION AND IN A JOINT INTERVIEW WITH TOP EDITORS OF THE JOURNAL AND EL NORTE THE PRESTIGIOUS MONTERREY DAILY MR CARPIZO HOLDS THAT CARDINAL POSADAS HAPPENED TO TURN INTO THE GUADALAJARA AIRPORT JUST BEHIND MEXICO'S TOP DRUG LORD JOAQUIN EL CHAPO GUZMAN LOERA AND HAPPENED TO HAVE A CAR OF THE SAME COLOR AND MAKE AS ONE SOMETIMES USED BY GUZMAN AND THAT WHILE GUZMAN ESCAPED A RIVAL DRUG GANG LYING IN AMBUSH MISTAKENLY RIDDLED THE CARDINAL WITH 14 BULLETS AT CLOSE RANGE THE STRING OF COINCIDENCES IS CLEARLY RICH AND MANY MEXICANS IMMEDIATELY SAW THE HIGHLY PUBLIC ASSASSINATION INSTEAD AS A WARNING TO THE GOVERNMENT ON STEPPEDUP ANTIDRUG EFFORTS BUT THE ROMAN CATHOLIC HIERARCHY HAS AT LEAST TENTATIVELY ACCEPTED THE CARPIZO VERSION AS BASED ON INTERROGATIONS WHILE OTHER INTERPRETATIONS ARE SHEER SPECULATION IF THE CARDINAL'S KILLING WERE INTENDED AS A WARNING IT WAS DIRECTED SQUARELY AT MR CARPIZO WHO TOOK OFFICE IN JANUARY HE'D PREVIOUSLY BEEN A LAWENFORCEMENT CRITIC AS HEAD OF THE NATIONAL HUMAN RIGHTS COMMISSION AND HAD EARLIER SERVED ON THE SUPREME COURT SINCE TAKING OFFICE HE HAS EXPLICITLY DENOUNCED HIS OWN DEPARTMENT'S FEDERAL JUDICIAL POLICE AND INDICTED AMONG OTHER COMMANDERS THE FORMER HEAD OF ITS ANTIDRUG EFFORTS GUILLERMO GONZALEZ CALDERONI ANY INTENDED WARNING MOREOVER SEEMS LIKELY TO BACKFIRE THE APPREHENSION OF ONE DRUGGED GUNMAN WHO PROVED TALKATIVE LED TO MOUNTAINS OF LEADS AND EVIDENCE INVESTIGATIONS CONTINUE INTO FOR EXAMPLE HOW THE GUNMEN HAD ENOUGH INFLUENCE AT AIRPORTS TO ESCAPE BY PLANE AND THE GOVERNMENT HAS EFFECTIVELY USED THE INCIDENT TO BUILD PUBLIC SUPPORT FOR ANTIDRUG EFFORTS THE PAPAL NUNCIO GERONIMO PRIGIONE SAYS THAT WHEN MEXICAN BISHOPS GATHERED TO WEIGH THE EVENT ONE EXPRESSED THE HOPE THAT THE BLOOD OF THIS POOR CARDINAL COULD HELP MEXICO PURIFY ITSELF THE US HAS ALSO PROVIDED APPARENT REFUGE FOR THE INDICTED GONZALEZ CALDERONI MR CARPIZO SAYS HE'S HELD HELPFUL DISCUSSIONS OF THE CASE WITH ATTORNEY GENERAL JANET RENO BUT THE JUDICIAL PROBLEM IS THAT THE EXTRADITION TREATY DOES NOT COVER THE MEXICAN CRIME UNDER WHICH THE POLICE COMMANDER WAS CHARGED ILLICIT ENRICHMENT OR OWING PROPERTY FAR IN EXCESS OF WHAT A KNOWN SALARY COULD EXPLAIN EXTRADITION PROBLEMS IN THE OPPOSITE DIRECTION LED TO AN INTERNATIONAL INCIDENT THAT STILL SOURS RELATIONS TO APPREHEND HUMBERTO ALVAREZ MACHAIN A MEXICAN PHYSICIAN SUSPECTED OF HELPING IN THE 1985 TORTUREMURDER OF US DRUG AGENT ENRIQUE CAMARENA SALAZAR AMERICAN DRUG ENFORCEMENT AGENTS POSTED A BOUNTY LEADING TO HIS KIDNAPPING THE US SUPREME COURT ALLOWED THE TRIAL TO PROCEED ONLY TO RESULT IN WACOSTYLE EMBARRASSMENT WHEN A US JUDGE DISMISSED THE CASE AS THE WILDEST SPECULATION MR CAMARENA'S FATE ITSELF PRESENTS A GREAT DIVIDE AMERICAN OFFICIALS REVERE HIM AS A MARTYR WHILE EVEN DISINTERESTED MEXICANS VIEW HIM AS A DOUBLE AGENT THE MEXICAN JAILING OF QUINTERO THOUGHT TO HAVE ORDERED THE KILLING IS SOMETIMES DEPICTED AS AN EFFORT TO PROTECT HIM FROM US JUSTICE NO NOTION COULD BE MORE MINDLESS A VISITING GRINGO CONCLUDES THAN THAT THE WAY TO FIGHT DRUGS IS TO KEEP MEXICO AT ARM'S LENGTH IF THE WAR CAN BE WON IT WILL HAVE TO BE NOT BY LESS COOPERATION AND INTEGRATION BUT BY MORE MR BARTLEY IS EDITOR OF THE JOURNAL 9306090137 930609 DIVIDEND NEWS BILLY BLUES FOOD CORP BILLY BLUES FOOD CORP SAN ANTONIO DECLARED A CASHEQUIVALENT COMMON STOCK DIVIDEND ON ITS 9 CUMULATIVE CONVERTIBLE PREFERRED STOCK PAYABLE JUNE 30 TO STOCK OF RECORD JUNE 18 HOLDERS WILL RECEIVE A DIVIDEND AT AN ANNUAL RATE OF 90 CENTS A SHARE TO BE PAID IN COMMON SHARES OF THE MAKER OF BARBECUE SAUCE'S STOCK HOLDERS ENTITLED TO A DIVIDEND THAT IS LESS THAN THE VALUE OF 50 COMMON SHARES WILL BE PAID IN CASH DIVIDENDS REPRESENTED BY FRACTIONAL SHARES ALSO WILL BE PAID IN CASH IN LATE OVERTHECOUNTER TRADING YESTERDAY BILLY BLUES COMMON SHARES FELL 625 CENTS TO 10875 9306090136 930609 INTERNATIONAL WINTERTHUR EXPECTS PROFIT RISE WINTERTHUR SWITZERLAND WINTERTHUR INSURANCE CO SAID IT EXPECTS HIGHER 1993 GROUP PROFIT AS A RESULT OF RESTRUCTURING MEASURES CHAIRMAN PETER SPAELTI SAID HE ALSO SAID WINTERTHUR EXPECTS GROUP EARNINGS TO BE HELPED BY A SUBSTANTIAL EXTRAORDINARY GAIN FROM THE SALE OF ITS STAKE IN ALLIED FINANCE A CONSUMER CREDIT COMPANY IN THE US THAT DIDN'T FIT WITH WINTERTHUR'S CORE ACTIVITIES 9306090135 930609 WHO'S NEWS CHEMTRAK INC CHEMTRAK INC SUNNYVALE CALIF RICHARD J WIESNER 48 FORMERLY PRESIDENT OF LIFESCAN INC A UNIT OF JOHNSON & JOHNSON WAS NAMED PRESIDENT OF THIS MEDICAL DIAGNOSTIC EQUIPMENT MAKER HE SUCCEEDS PRITHIPAL SINGH WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR WIESNER WAS ALSO NAMED TO THE NEWLY CREATED POST OF CHIEF OPERATING OFFICER 9306090134 930609 WHO'S NEWS BLOUNT INC BLOUNT INC MONTGOMERY ALA THIS MANUFACTURING AND CONSTRUCTION COMPANY NAMED JOHN M PANETTIERE CHIEF EXECUTIVE OFFICER EFFECTIVE JUNE 21 MR PANETTIERE 55 YEARS OLD SUCCEEDS WINTON M RED BLOUNT 72 WHO WILL REMAIN CHAIRMAN MR PANETTIERE JOINED BLOUNT IN 1992 AS PRESIDENT AND CHIEF OPERATING OFFICER AND HAS BEEN CULTIVATED TO TAKE OVER AS CHIEF EXECUTIVE A SPOKESMAN SAID HE RETAINS HIS TITLE AS PRESIDENT THE POSITION OF CHIEF OPERATING OFFICER WILL BE LEFT VACANT BEFORE JOINING BLOUNT MR PANETTIERE WAS CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OF GROVE WORLDWIDE CO A UNIT OF HANSON PLC 9306090133 930609 WHO'S NEWS MORTON INTERNATIONAL NAMES LOCKE STEWART TO OFFICE OF CHAIRMAN CHICAGO MORTON INTERNATIONAL INC SAID IT IS CREATING AN OFFICE OF THE CHAIRMAN CONSISTING OF ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER CHARLES S LOCKE AND PRESIDENT AND CHIEF OPERATING OFFICER S JAY STEWART MR LOCKE 64 YEARS OLD SAID THE MOVE WAS MADE IN PREPARATION FOR HIS RETIREMENT IN MARCH 1994 AT THAT TIME IT IS EXPECTED THAT THE BOARD WILL NAME MR STEWART 54 CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER THE MAKER OF SPECIALTY CHEMICALS SALT AND AIRBAGS ALSO NAMED WILLIAM E JOHNSTON JR 53 FORMERLY PRESIDENT OF THE COMPANY'S SALT GROUP TO THE NEW POST OF EXECUTIVE VICE PRESIDENT FOR ADMINISTRATION EFFECTIVE JULY 1 9306090132 930609 IEC ELECTRONICS' FORECAST NEWARK NY IEC ELECTRONICS CORP SAID IT EXPECTS TO REPORT EARNINGS FOR THE THIRD QUARTER ENDING JULY 2 OF 35 CENTS TO 40 CENTS A SHARE ABOVE ANALYSTS' FORECASTS OF 25 CENTS TO 32 CENTS A SHARE THE MANUFACTURING AND MANAGEMENT SERVICES CONCERN ALSO PROJECTED REVENUE OF 33 MILLION TO 36 MILLION IT ATTRIBUTED THE IMPROVEMENT TO A HIGHER SHIPMENT RATE A YEAR EARLIER IEC HAD A NET LOSS OF 281000 OR SIX CENTS A SHARE ON REVENUE OF 95 MILLION 9306090131 930609 WHO'S NEWS DUFF & PHELPS NAMES ITS PRESIDENT JEFFRIES TO BE CHAIRMAN CEO CHICAGO FRANCIS E JEFFRIES 62 YEARS OLD CURRENTLY PRESIDENT OF DUFF & PHELPS CORP WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER A NEW POSITION AT THE INVESTMENT AND RESEARCH CONCERN EFFECTIVE JUNE 30 CALVIN J PEDERSEN 51 CURRENTLY EXECUTIVE VICE PRESIDENT SUCCEEDS MR JEFFRIES WAYNE C STEVENS 46 CURRENTLY PRESIDENT OF DUFF & PHELPS/MCM INVESTMENT RESEARCH CO UNIT WAS NAMED PRESIDENT AND CHIEF EXECUTIVE AND CHIEF INVESTMENT OFFICER OF DUFF & PHELPS INVESTMENT MANAGEMENT CO UNIT MR STEVENS SUCCEEDS ROBERT D MILNE 62 WHO WAS NAMED CHAIRMAN OF THE INVESTMENT MANAGEMENT UNIT AND VICE CHAIRMAN OF THE PARENT COMPANY PAUL J MCCARTHY 54 SUCCEEDS MR STEVENS AND WILL RETAIN HIS CURRENT POSITION AS PRESIDENT AND CHIEF EXECUTIVE OF THE DUFF & PHELPS CREDIT RATING CO UNIT 9306090129 930609 REVIEW & OUTLOOK EDITORIAL QUALITY CIRCLE BUSTERS WHILE THE CLINTONITES WANDER AROUND LOOKING FOR THE CENTER OTHER AMERICANS CONTINUE TO PARTICIPATE IN SOMETHING CALLED AN ECONOMY TOO BAD THEY KEEP GETTING SANDBAGGED BY AN ANTIQUE NEW DEAL AGENCY THAT CAN'T SEEM TO GET ITS MIND AROUND THE MODERN ECONOMY THE NATIONAL LABOR RELATIONS BOARD SPENDS ITS TIME PATROLLING THE INDUSTRIAL LANDSCAPE IN SEARCH OF ANYTHING THAT LOOKS EVEN VAGUELY LIKE A COMPANY UNION COMPANY UNIONS ARE ILLEGAL UNDER THE WAGNER ACT OF 1935 IN THE WORDS OF ONE UNION OFFICIAL WHO MUST THINK HE INHABITS A STEINBECK NOVEL THEY'RE A TIMELESS EVIL BUT MOST FOLKS HAVE NOTICED THAT THE ECONOMY HAS MOVED ON SINCE THE 1930S AND THE PREFERRED TERM TODAY IS QUALITY CIRCLE QUALITY CIRCLES ARE A JAPANESE INNOVATION AND AIM TO INVOLVE WORKERS IN MANAGEMENT DECISIONS WORLD CLASS COMPETITORS LIKE MOTOROLA HEWLETTPACKARD FORD AND AT&T SWEAR BY THEM AS A WAY TO HIKE PRODUCTIVITY AND KEEP FOLKS WORKING HAPPILY IN ITS LATEST MASTERSTROKE THE NLRB HAS RULED THAT A HANDFUL OF SAFETY AND FITNESS COMMITTEES SET UP AT A DUPONT PLANT ARE SHAM UNIONS UNDER THE WAGNER ACT BEFORE THE REIGN OF TERROR WAS CUT SHORT THESE OUTLAW COMMITTEES ARRANGED BETTER VENTILATION IN THE PLANT'S WELDING SHOP AND SET UP A PICNIC AREA IN DOING SO THEY STEPPED ON THE TOES OF THE CHEMICAL WORKERS ASSOCIATION THE UNION HAD PROMISED PICNIC TABLES TOO BUT NEVER DELIVERED THE DUPONT DECISION WAS AN EXCLAMATION MARK ON LAST DECEMBER'S ELECTROMATION RULING IN THAT CASE A SMALL INDIANABASED MAKER OF ELECTRICAL GADGETRY WAS PILLORIED FOR SETTING UP ACTION COMMITTEES TO DEAL WITH SMOKING POLICY BONUSES AND THE LIKE IT SEEMS THESE COMMITTEES ANNOYED THE TEAMSTERS WHO WERE TRYING TO ORGANIZE THE FACTORY'S WORKERS THE LABOR DEPARTMENT HAS A LIST OF COMPANIES WHO'VE JOINED THE QUALITY REVOLUTION IT'S AN INCH THICK AND SINGLESPACED IN EFFECT THE NLRB RULINGS SET UP A LEGAL SQUEEZE IN WHICH EVEN NONUNION COMPANIES CAN'T CONSULT THEIR WORKERS WITHOUT A BYYOURLEAVE FROM A UNION BOSS THE BOARD ROYALLY FLUBBED A CHANCE IN ELECTROMATION TO EXPLAIN WHEN QUALITY CIRCLES WOULDN'T BE ILLEGAL NOW IT COMES BACK IN DUPONT WITH THE HELPFUL ADVICE THAT A SUGGESTION BOX OR AT MOST A BRAINSTORMING SESSION AS LONG AS IT MAKES NO PROPOSALS WOULD PASS LEGAL MUSTER AS COMMUNICATION BETWEEN WORKERS AND MANAGERS OBVIOUSLY THIS IS IDIOTIC BUT THE UNIONS LOVE IT SOME OLDTIMERS HAVE ALWAYS OPPOSED QUALITY CIRCLES BECAUSE THEY EMPLOY PEER PRESSURE HORRORS TO MOTIVATE WORKERS MORE IMPORTANTLY BIG LABOR'S HOLD ON THE PRIVATESECTOR WORK FORCE HAS SLIPPED TO BARELY 10 NOW THEY DREAM OF ELBOWING THEIR WAY BACK WITH AN NLRBENFORCED MONOPOLY ON CONVERSATION BETWEEN THE FACTORY FLOOR AND THE FRONT OFFICE FOR THOUSANDS OF COMPANIES A LITIGATION NIGHTMARE AWAITS THE FEDERAL COURT OF APPEALS THROWS OUT THE NLRB'S RULINGS AS A MATTER OF COURSE BUT IT TAKES A FORTUNE IN LEGAL FEES TO GET THAT FAR MOST COMPANIES WOULD RATHER SPEND THEIR TIME AND MONEY MAKING AND SELLING PRODUCTS IN THEORY LABOR SECRETARY ROBERT REICH IS A FAN OF WORKPLACE COOPERATION BUT THAT DOESN'T SQUARE TOO EASILY WITH HIS OTHER ACTIVITIES WHICH SO FAR HAVE CONSISTED MAINLY OF DOLING OUT POLITICAL REWARDS TO THE CLINTON CAMPAIGN'S SUPPORTERS AMONG ORGANIZED LABOR UNION HOUSEHOLDS VOTED 60 FOR THE DEMOCRATS AND BIG LABOR POURED MILLIONS OF SOFT DOLLARS INTO GETTING THE TICKET ELECTED IN APRIL MR REICH APPOINTED A COMMISSION TO MULL CHANGES IN THE LABOR LAWS AND NATURALLY ITS MEMBERS ARE SYMPATHETIC TO THE SHRINKING PRECINCTS OF ORGANIZED LABOR THEY MAY BE INCLINED TO DO SOMETHING ON QUALITY CIRCLES BUT THEY'LL ALSO LARD THEIR REPORT WITH PROPOSALS FOR EXPANDING UNION LEVERAGE OVER THE ECONOMY JIMMY CARTER COULDN'T GET THIS AGENDA THROUGH CONGRESS AND NEITHER WILL BILL CLINTON WE HAVE A SUGGESTION FOR A PRESIDENT SEARCHING FOR THE CENTER NANCY KASSEBAUM AND STEVE GUNDERSON BOTH FROM THE PARTY ACROSS THE AISLE HAVE BILLS THAT WOULD AMEND THE WAGNER ACT AND MAKE IT CLEAR THAT WORKERS AND MANAGEMENT MAY TALK AMONG THEMSELVES ABOUT QUALITY PRODUCTIVITY AND EFFICIENCY MR CLINTON OUGHT TO PICK UP THE PHONE AND TELL THESE TWO REPUBLICANS HE WANTS TO WORK WITH THEM TO GET THEIR LEGISLATION PASSED 9306090128 930609 BUSINESS BRIEF PARAMOUNT POSTS 101 MILLION LOSS FOR ITS 2ND QUARTER ON ONETIME CHARGE NEW YORK PUBLISHING AND ENTERTAINMENT COMPANY PARAMOUNT COMMUNICATIONS INC POSTED A NET LOSS FOR ITS FISCAL SECOND QUARTER OF 101 MILLION REFLECTING A ONETIME CHARGE WEAKER MOTION PICTURE RESULTS AND LARGER SEASONAL LOSSES IN ITS EDUCATIONAL PUBLISHING BUSINESS BUT WITHOUT THE 26 MILLION CHARGE TO CONSOLIDATE PUBLISHING AND OTHER FUNCTIONS IN NEW OFFICES PLANNED IN NEW JERSEY PARAMOUNT SAID NET INCOME WOULD HAVE FALLEN 44 TO 159 MILLION OR 14 CENTS A SHARE PARAMOUNT CALLED THAT FIGURE MODESTLY AHEAD OF EXPECTATIONS A YEAR EARLIER NET INCOME WAS 283 MILLION OR 23 CENTS A SHARE WHEN THE COMPANY SAID IT HAD EXCEPTIONAL FISCAL FIRSTHALF RESULTS FROM ITS MOTION PICTURE BUSINESS THE LOSS IN THE QUARTER ENDED APRIL 30 AMOUNTED TO EIGHT CENTS A SHARE REVENUE ROSE 29 TO 9544 MILLION FROM 9279 MILLION THE COMPANY SAID IT EXPECTS A RESURGENCE OF EARNINGS MOMENTUM IN THE SECOND HALF OF CALENDAR 1993 DUE TO ITS NEWLY ACQUIRED THEME PARKS AS WELL AS AN EXTRAORDINARILY PROMISING FILM LINEUP IT ALSO SAID IT SEES SIGNIFICANT GROWTH IN COMPUTERBASED LEARNING AND OTHER PARTS OF ITS PUBLISHING BUSINESS PARAMOUNT SAID IT HAS CHANGED ITS FISCAL YEAR TO END ON APRIL 30 INSTEAD OF OCT 31 WHICH WILL PUSH SUMMER MOVIE BUSINESS THE SEASONAL SURGE IN EDUCATIONAL PUBLISHING AND RESULTS FROM THEME PARK OPERATIONS INTO THE FISCAL FIRST HALF THUS ITS NEXT FINANCIAL REPORT WILL BE FOR THE FIRST QUARTER OF THE NEW FISCAL YEAR PARAMOUNT STOCK FELL 50 CENTS OR 09 TO CLOSE AT 53875 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING THE COMPANY ALSO RESTATED FISCAL FIRSTQUARTER RESULTS TO REFLECT ADOPTION OF AN ACCOUNTING STANDARD FOR POSTRETIREMENT BENEFITS OTHER THAN PENSIONS TURNING EARNINGS OF 900000 OR ONE CENT A SHARE INTO A NET LOSS OF 677 MILLION OR 58 CENTS A SHARE THE COMPANY HAD A NET LOSS OF 778 MILLION OR NINE CENTS A SHARE FOR THE FISCAL FIRST HALF COMPARED WITH YEAREARLIER NET INCOME OF 467 MILLION OR 39 CENTS A SHARE REVENUES FELL 5 TO 19 BILLION FROM ALMOST 2 BILLION 9306090127 930609 BUSINESS BRIEF PHYSICIANS INSURANCE CO OF OHIO QUAKER HOLDINGS TO PROVIDE CASH INFUSION GET 30 STAKE PHYSICIANS INSURANCE CO OF OHIO SAID IT AGREED TO GIVE QUAKER HOLDINGS LTD A SAN DIEGO INVESTMENT CONCERN A 30 STAKE IN RETURN FOR A 5 MILLION CASH INFUSION UNDER A LETTER OF INTENT QUAKER WOULD ACQUIRE 1428571 NEWLY ISSUED PHYSICIANS INSURANCE SHARES AT 350 A SHARE QUAKER ALSO WOULD BE ALLOWED TO MAKE AN ADDITIONAL 5 MILLION INVESTMENT OVER THREE YEARS PHYSICIANS INSURANCE WOULD SEEK TO GIVE QUAKER FOUR OF ITS 12 BOARD SEATS THE PICKERINGTON OHIO MEDICAL MALPRACTICE INSURER WHICH WILL HOLD THE INVESTMENT AS SURPLUS CASH SAID THE INVESTMENT FURTHER STRENGTHENS ITS FINANCES AND WILL HELP MAINTAIN THE COMPANY'S PRESENCE IN THE MARKETPLACE IN 1992 THE COMPANY HAD A NET LOSS OF 69 MILLION OR 223 A SHARE IN 1991 ITS NET LOSS WAS 869000 OR 28 CENTS A SHARE FIRSTQUARTER 1993 RESULTS WILL BE REPORTED THIS WEEK PHYSICIANS INSURANCE ALSO RECENTLY AGREED TO RETIRE 36000 CLASS B SHARES HELD BY THE OHIO STATE MEDICAL ASSOCIATION THE SHARES WITH 100 VOTES EACH GAVE THE ASSOCIATION CONTROL OF THE COMPANY 9306090126 930609 TREASURY PLANS SALE OF 24 BILLION IN BILLS WASHINGTON THE TREASURY PLANS TO PAY DOWN 698 BILLION ON THE PUBLIC DEBT WITH THE SALE MONDAY OF ABOUT 24 BILLION IN SHORTTERM BILLS MATURING BILLS OUTSTANDING TOTAL 3098 BILLION INCLUDING 701 BILLION IN 13DAY CASH MANAGEMENT BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING SEPT 16 1993 AND DEC 16 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794F74 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794E67 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9306090125 930609 BUSINESS BRIEF OWENS & MINOR INC HOSPITAL COOPERATIVE GRANTS FIVEYEAR SUPPLY CONTRACT OWENS & MINOR INC SAID IT WAS CHOSEN BY A NATIONAL HOSPITAL SYSTEM AS A SUPPLIER UNDER A FIVEYEAR AGREEMENT THE GLEN ALLEN VA HOSPITALSUPPLY DISTRIBUTOR SAID IT WAS CHOSEN BY PREMIER HOSPITALS ALLIANCE INC WESTCHESTER ILL A COOPERATIVE OWNED BY 50 TEACHING AND RESEARCH HOSPITALS IN 42 CITIES A SPOKESMAN FOR OWENS SAID THE VALUE OF THE CONTRACT CAN'T BE ESTIMATED UNTIL PREMIER COMPLETES NEGOTIATIONS WITH BAXTER INTERNATIONAL INC WHICH WILL BE PREMIER'S OTHER MAJOR SUPPLIER OVERALL PREMIER EXPECTS TO SPEND 200 MILLION TO 300 MILLION ANNUALLY FOR HOSPITAL SUPPLIES OWENS & MINOR'S AGREEMENT WITH PREMIER IS FOR FIVE YEARS AND BEGINS AUG 1 PREMIER ALSO REPRESENTS ABOUT 100 AFFILIATED COMMUNITY AND SPECIALITY HOSPITALS WITH MORE THAN 50000 BEDS NATIONWIDE 9306090124 930609 MANATRON TO BUY ATEK KALAMAZOO MICH MANATRON INC A MAKER OF DATAPROCESSING SYSTEMS SAID IT AGREED TO ACQUIRE ATEK INFORMATION SERVICES INC A MAKER OF COMPUTER SOFTWARE AND HARDWARE WITH OFFICES IN CANTON OHIO AND INDIANAPOLIS TERMS OF THE AGREEMENT WEREN'T DISCLOSED 9306090123 930609 BUSINESS BRIEF SOUTHWEST AIRLINES DALLAS AIRLINE TO ADD FLIGHTS TO SAN JOSE CALIF SCHEDULE SOUTHWEST AIRLINES PICKING UP SOME ROUTES PREVIOUSLY FLOWN BY AMERICAN AIRLINES SAID IT WILL ADD 18 FLIGHTS TO ITS SCHEDULE AT SAN JOSE INTERNATIONAL AIRPORT IN SAN JOSE CALIF THE NEW FLIGHTS TO BE IN PLACE BY AUG 18 WILL BRING THE TOTAL DAILY FLIGHTS TO 29 IN SAN JOSE NEW SERVICE WILL BE TO RENO NEV LOS ANGELES AND ONTARIO CALIF SERVICE WILL BE ADDED TO SOUTHWEST'S EXISTING DAILY FLIGHTS TO BURBANK CALIF AND LAS VEGAS THE ADDITIONAL FLIGHTS ARE POSSIBLE BECAUSE TWO NEW AIRCRAFT ARE SCHEDULED TO BE DELIVERED THIS SUMMER SAID SOUTHWEST THE DALLASBASED AIRLINE BEGAN SERVICE AT SAN JOSE ON JUNE 1 9306090122 930609 FINANCING BUSINESS MAGMA COPPER CO MAGMA COPPER CO TUCSON ARIZ SAID IT FILED A SHELF REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION TO ISSUE AS MUCH AS 200 MILLION IN PUBLICLY TRADED SECURITIES THE COPPER PRODUCER SAID THE NEW FILING REPLACES THE EXISTING REGISTRATION 9306090121 930609 WHO'S NEWS TRANSMEDIA NETWORK INC TRANSMEDIA NETWORK INC NORTH MIAMI FLA MICHAEL L DIAMOND WAS NAMED TO THE NEW POSITION OF EXECUTIVE VICE PRESIDENT ADMINISTRATION OF THIS MARKETER OF RESTAURANT CHARGE CARDS MR DIAMOND 47 YEARS OLD WAS FORMERLY SENIOR VICE PRESIDENT FOR AMERICAN EXPRESS CO'S SOUTHERN REGIONAL OPERATIONS CENTER 9306090120 930609 LEISURE & ARTS THE CABARET SINGER AS ENTREPRENEUR BY ROXANE ORGILL NEW YORK AS I LISTENED ENTRANCED TO WESLIA WHITFIELD SINGING ABOUT LOVE I NOTICED TWO TEDDY BEARS SITTING BEHIND HER ON A BANQUETTE IN THE OAK ROOM WERE THEY LUCKY CHARMS BROUGHT ALONG TO SEE HER THROUGH HER FIRST MAJOR NEW YORK ENGAGEMENT AT THIS CABARET IN THE ALGONQUIN HOTEL NO SHE MAKES THE WIDEEYED WOOLLY BEARS AND SELLS THEM HERSELF TO MAKE ENDS MEET SHE ALSO WORKS AS A PARALEGAL TRANSCRIBES INTERVIEWS FOR THE SMITHSONIAN INSTITUTION'S JAZZ ARCHIVE AND DOES A HOST OF OTHER JOBS SHE DISTRIBUTES HER OWN RECORDS AND BOOKS HER ENGAGEMENTS HERSELF SHE'S AN ENTREPRENEUR SHE HAS TO BE EVEN AT THE TOP CABARET DOES NOT PAY THE RENT MS WHITFIELD WENT HOME TO SAN FRANCISCO AFTER A RECENT MONTHLONG RUN IN THE OAK ROOM WITH RAVE REVIEWS MANY HAPPY MEMORIES OF SINGING AMERICAN POPULAR SONGS TO A FULL HOUSE AND A LARGE DEBT ALTHOUGH HER MONTH'S SALARY FROM THE ALGONQUIN COVERED HER MORTGAGE ON A TOWN HOUSE IN A BAD NEIGHBORHOOD NEAR CANDLESTICK PARK SHE SAYS SHE ALSO HAD TO HIRE A NEW YORK PUBLICIST TO FILL THE ROOM HIS FEE WAS FIVE TIMES THE MORTGAGE I WAS IN THE HOLE BEFORE I EVEN GOT HERE SHE SAYS CHEERFULLY SHE AND HER HUSBAND MIKE GREENSILL WHO IS ALSO HER PIANIST DID GET FREE ROOM ACTUALLY A TWOROOM SUITE AND PARTIAL BOARD THE FAMILY MEAL OFF THE MENU THAT IS SERVED TO THE STAFF IN THE HOTEL RESTAURANT TO PAY FOR BREAKFASTBAGELS AND FRUIT FROM THE DELI NEXT DOOR AND OTHER NEW YORK EXPENSES THEY PLAYED A WEEKEND AT ODETTE'S IN NEW HOPE PA WHICH NETTED 1300 THAT ALSO PAID FOR TIPS FOR THE HOTEL STAFF A PRACTICE THAT IS DE RIGUEUR FOR OAK ROOM PERFORMERS AT THE END OF THEIR STAY AFRAID THAT HER TIPS WERE TOO SMALL SHE MADE GIFTS OF PAPER DOLLS RESEMBLING THE 25 WAITERS AND BELLMEN AND THE MAITRE D' WHO AFTER ALL HAD SLIPPED ICE CREAM TO HER AFTER SUPPER NEXT TIME MS WHITFIELD MAY NOT HAVE TO SUPPLEMENT TIPS WITH ARTWORK THE ALGONQUIN HAS ASKED HER BACK FOR FIVE OR SIX WEEKS IN DECEMBER AT DOUBLE HER PREVIOUS SALARY BUT SHE STILL HAS TO PAY THE PUBLICIST WHOSE PRICE THIS TIME IS SIX TIMES THE MORTGAGE IT'S INSANE BUT IF YOU'VE GOT IT IN YOU YOU JUST HAVE TO DO IT OR YOU'RE JUST MISERABLE SAYS WESLIA PRONOUNCED WESSLA WHITFIELD YOU HAVE TO BE DRIVEN YOU HAVE TO BE WILLING TO GIVE UP EVERY OTHER THING IN YOUR LIFE ESPECIALLY MONEY AND SOME SENSE OF CONTINUITY FORTUNATELY MR GREENSILL HAS A REGULAR JOB PLAYING PIANO AT STARS A WELLKNOWN CELEBRITY HANGOUT AND RESTAURANT IN SAN FRANCISCO AND THEY HAVE A NEW RECORDING BEAUTIFUL LOVE THEIR FIRST WITH CABARET RECORDS TO ORDER CALL MS WHITFIELD AT 4156486289 OR ROSE RECORDS 1800955ROSE WHICH WILL NOT MAKE THEM A PILE OF MONEY BUT AT LEAST DID NOT COST THEM ANYTHING AS DID THREE RECORDINGS THEY MADE UNDER THEIR OWN LABEL MYOHO RECORDS CABARET RECORDS GAVE HER 7000 AND AFTER EXPENSES STUDIO TECHNICIANS DRUMMER BASS PLAYER AND THE PRODUCTION OF A DIGITAL AUDIO TAPE DAT MASTER SHE HAD 200 LEFT SINCE CLASSICAL TRAINING WAS ALL THAT WAS AVAILABLE IN SANTA MARIA CALIF SHE BECAME A CLASSICAL SINGER AND LANDED A JOB IN THE CHORUS OF THE SAN FRANCISCO OPERA STILL THE DREAM OF BECOMING A POPULAR SINGER DOGGED HER AND AFTER FOUR YEARS SHE QUIT TO BECOME A SINGING WAITRESS IN SLEAZY NIGHT CLUBS SHE SAYS SHE HAD WORKED HER WAY UP TO A SOLO ACT WHEN SHE WAS SHOT IN A RANDOM VIOLENT INCIDENT IN 1977 THAT LEFT HER PARALYZED AND UNABLE TO WALK WHEN SHE GOT OUT OF THE HOSPITAL SHE PICKED UP WHERE SHE LEFT OFF TALK ABOUT DRIVEN SHE SAYS MS WHITFIELD NEVER PERFORMED IN A WHEELCHAIR TOO DISTRACTING FOR THE AUDIENCE SHE SAYS BUT SITS IN A TALL SWIVEL CHAIR AT THE BEGINNING OF HER ACT IN A GESTURE BOTH TOUCHING AND PRACTICAL MR GREENSILL PICKS HER UP OUT OF HER WHEELCHAIR IN THE BACK OF THE ROOM KISSES HER AND CARRIES HER HIGH ABOVE THE CHAMPAGNE FLUTES AND FLICKERING CANDLES TO THE STAGE THEY MET IN 1981 WHEN HE FILLED IN FOR HER REGULAR PIANIST WHILE HE WAS ON A BREAK MR GREENSILL ACCOMPANIED HER SO WELL THAT SHE ASKED HIM BACK AGAIN AND AGAIN FOUR YEARS LATER HE LEFT HIS WIFE AND A BEAUTIFUL NEW HOME TO LIVE IN A COLD DAMP BASEMENT APARTMENT WITH THE NEWLY DIVORCED MS WHITFIELD THEY WERE MARRIED FIVE MONTHS LATER THEY MAKE A DYNAMIC DUO HE'S A JAZZ PIANIST AND DOES THE ARRANGEMENTS SO A RHYTHMIC JAZZ FEEL PULSES THROUGH THEIR REPERTOIRE OF SONGS MOSTLY FROM THE '30S AND '40S THANKS NO DOUBT TO HER CLASSICAL TRAINING SHE SINGS ON PITCH AND CAN HOLD A NOTE FOR A BREATHLESSLY LONG TIME BUT SHE DOES THINGS A CLASSICAL SINGER WOULD NEVER DO SUCH AS USING VIBRATO SPARINGLY AND PLAYING AROUND WITH RHYTHM PULLING NOTES LIKE TAFFY ACROSS BAR LINES THE PAIR IS A FIXTURE OF THE SAN FRANCISCO CABARET SCENE WHICH HAS GONE FROM LIVELY TO LANGUID SINCE CLUBS LIKE THE PLUSH ROOM WENT FOUR WALL IN A FOUR WALL OPERATION THE SINGER PRODUCES HERSELF RENTS THE ROOM HIRES LIGHTS AND SOUND TECHNICIANS AND MUSICIANS BUYS ADVERTISING AND MAILS HER OWN INVITATIONS IN RETURN SHE COLLECTS THE COVER CHARGES MS WHITFIELD GAVE FOUR WALL A TRY FOR FIVE MONTHS IN 1989 SHE DREW A GOOD CROWD OF 60 PEOPLE A NIGHT TO THE PLUSH ROOM COLLECTED 53428 AT THE DOOR AND TOOK HOME 2081 FOR 19 WEEKS' WORK AN OLDER WISER MS WHITFIELD NOW HAS JUST ONE REGULAR GIG IN THE MANDARIN/ORIENTAL HOTEL LOUNGE THE HOTEL PAYS FOR ALL THE ADVERTISING SHE AND MR GREENSILL BRING A PORTABLE SOUND SYSTEM THE MANAGER FLICKS THE SWITCH ON A SINGLE SPOTLIGHT GRATIS AFTER SHE HAS PAID THE BASS PLAYER SHE TAKES HOME 630 NOT BAD FOR A NIGHT'S WORK SHE'S THERE FRIDAYS AND SATURDAYS THIS MONTH THEN IT'S BACK TO TEDDY BEARS DEPOSITIONS AND OTHER ENTERPRISES AS YET UNKNOWN MS ORGILL IS A WRITER IN HOBOKEN NJ 9306090119 930609 HP GETS WEYERHAEUSER ORDER PALO ALTO CALIF HEWLETTPACKARD CO SAID IT WAS SELECTED BY WEYERHAEUSER CO TO PROVIDE AS MUCH AS 25 MILLION OF HP COMPUTER PRODUCTS WEYERHAEUSER A FOREST PRODUCTS CONCERN IS IN THE MIDST OF AN AMBITIOUS OVERHAUL OF ITS COMPUTING SYSTEMS 9306090118 930609 LETTERS TO THE EDITOR WEAK DOLLAR BAD ECONOMIC THEOLOGY IN HIS MAY 20 COUNTERPOINT COLUMN YEN APPRECIATION DOES REDUCE JAPAN'S SURPLUS WILLIAM CLINE ATTRIBUTES CHANGES IN THE TRADE BALANCE TO CHANGES IN THE EXCHANGE RATE TWO YEARS EARLIER THE LONG LAG IS SUSPICIOUS AS IS THE CURIOUS MEASURE OF JAPAN'S SURPLUS AS PERCENTAGE OF TWOWAY TRADE AND MR CLINE'S ATTEMPT TO LINK THE RECENT STAGNATION OF JAPAN'S IMPORTS TO A NEARLY INVISIBLE UPTICK IN THE DOLLAR IN 198990 SEEMS ALMOST AS FANCIFUL AS HIS SUGGESTION THAT THE DOLLAR'S DROP SINCE 1985 MUST BE DUE TO SMALLER BUDGET DEFICITS IN 198082 THE US TRADE DEFICIT WITH JAPAN WAS SMALL BECAUSE THE US ECONOMY WAS IN RECESSION WHILE JAPAN'S WAS NOT THAT SLUMP REDUCED US DEMAND FOR IMPORTS AND FREED UP DOMESTIC OUTPUT FOR EXPORTS THE RECESSION OF 198082 MAY INDEED HAVE BEEN CAUSED BY SINKING THE DOLLAR TWO YEARS EARLIER WHICH GAVE US STAGFLATION BUT THIS DOES NOT APPEAR TO BE THE MESSAGE MR CLINE INTENDS TO CONVEY IN 199293 BY CONTRAST IT IS JAPAN'S INDUSTRIAL PRODUCTION THAT HAS BEEN SHRINKING AS THE US'S EXPANDS THE US TRADE DEFICIT WITH JAPAN BECAME LARGER BECAUSE JAPAN'S ECONOMY IS TOO WEAK TO IMPORT MUCH WHILE US INDUSTRY IS NOW SELLING AT HOME MANY OF THE GOODS IT WOULD OTHERWISE BE EXPORTING MR CLINE CORRECTLY OBSERVES THAT THE STATE OF JAPAN'S DOMESTIC DEMAND DOES MATTER FOR US EXPORTS TWO OBVIOUS WAYS BY WHICH JAPANESE CONSUMERS AND US EXPORTERS COULD THUS BE HELPED ARE THROUGH LOWER INTEREST RATES OR LOWER TAX RATES IN JAPAN UNFORTUNATELY THE US TREASURY SHARES MR CLINE'S THEOLOGY THAT WEAK MONEY IS THE WAY TO MAKE THIS COUNTRY STRONG THIS MAKES IT UNDIPLOMATIC FOR THE BANK OF JAPAN TO EASE SINCE DOING SO MIGHT WELL PUSH THE YEN DOWN ACCORDING TO MR CLINE'S LOGIC LOWER JAPANESE INTEREST RATES WOULD THUS BE BAD FOR US EXPORTS SIMPLY BECAUSE THE DOLLAR MIGHT RISE IN REALITY THE RESULTING BOOST TO JAPANESE DEMAND WOULD HELP THE WHOLE WORLD ONE ALTERNATIVE TO MONETARY EASE WOULD BE TO SUSPEND JAPAN'S VAT AND AUTO EXCISE FOR A FEW YEARS BUT UNLESS JAPAN'S ECONOMY GETS MOVING AGAIN DEBAUCHING THE DOLLAR WON'T STIMULATE ANYTHING BUT THE GOLD MINES 9306090117 930609 FREQUENT OPEC RIVALS JOIN TO SEEK RISE IN OIL PRICES BY HOLDING LINE ON OUTPUT BY JAMES TANNER AND BHUSHAN BAHREE STAFF REPORTERS OF THE WALL STREET JOURNAL GENEVA SAUDI ARABIA AND IRAN OPEC'S LARGEST PRODUCERS AND USUALLY OPPONENTS ON PRICING BOTH ARE SEEKING HIGHER OIL PRICES AT THE MEETING OF OIL MINISTERS HERE NEITHER HAS OFFICIALLY PROPOSED IT YET BUT THE IDEA IS TO POSTPONE ANY SIGNIFICANT INCREASES IN OUTPUT QUOTAS EVEN THOUGH DEMAND FOR OPEC OIL IS EXPECTED TO RISE IN THE THIRD QUARTER IF WE WANT TO IMPROVE THE PRICE WE MUST NOT PUT ADDITIONAL BARRELS UNNECESSARILY ON THE MARKET HISHAM NAZER THE SAUDI OIL MINISTER SAID AT THE CONFERENCE OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES AND PRICES SHOULD BE BETTER MR NAZER SAID ALTHOUGH IRAN TRADITIONALLY HAS BEEN REGARDED AS OPEC'S PRICING HAWK SAUDI ARABIA HAS HELD THE REPUTATION OF BEING A MODERATE ON THE ISSUE IN RECENT MONTHS HOWEVER THERE HAS BEEN INCREASING EVIDENCE THAT THE SAUDIS PRESUMABLY PRESSED BY ECONOMIC NEEDS WANTED TO SEE PRICES AS MUCH AS 2 A BARREL HIGHER NOW A LEADING OIL MINISTER SAID YESTERDAY THEY APPEAR TO BE MOVING TO ACHIEVE THAT OBJECTIVE THERE IS A CHANGE OF ATTITUDE BY THE SAUDIS THEY ARE PREOCCUPIED WITH PRICE HE SAID THIS DEVELOPMENT DOES NOT GUARANTEE HIGHER PRICES EVEN THOUGH SAUDI ARABIA AND IRAN TOGETHER ACCOUNT FOR NEARLY HALF OF OPEC'S PRODUCTION CURRENTLY 242 MILLION BARRELS A DAY THE REASONS INCLUDE SATED MARKETS ANEMIC WORLD ECONOMIES AND INSISTENCE BY SOME OPEC COUNTRIES THAT THEY BE ALLOWED TO PRODUCE MORE NOW NEVERTHELESS THERE IS A TURN IN EMPHASIS IN OPEC THAT IS SHIFTING ALLIANCES AND SPARKING NEW CONFLICTS IN THE PAST OPEC'S MAIN PROBLEM WAS THE DIVISION BETWEEN THOSE WHO WANTED HIGHER PRICES AND THOSE WHO DIDN'T SAID ONE OIL MINISTER BUT NOW HE ADDED THE DIVISION IS BETWEEN THOSE WHO WANT HIGHER PRICES AND THOSE WHO WANT BOTH HIGHER PRICES AND HIGHER PRODUCTION QUOTAS KUWAIT NIGERIA AND IRAN FALL IN THE LATTER CATEGORY HE ADDED OIL DEMAND USUALLY RISES SEASONALLY IN THE THIRD QUARTER AND IT IS GENERALLY ANTICIPATED THAT THE WORLD'S NEED FOR OPEC OIL WILL BE 242 MILLION BARRELS A DAY THE CARTEL'S TOTAL CURRENT PRODUCTION VOLUME PLUS WHATEVER AMOUNTS ARE ADDED TO INVENTORIES BY OIL COMPANIES ALTHOUGH IT IS UNCERTAIN HOW MUCH OIL IF ANY WILL BE ADDED TO INVENTORIES IN THE QUARTER THE RESTOCKING HAS AVERAGED SOME 700000 BARRELS A DAY IN RECENT YEARS SOME OPEC COUNTRIES WANT TO INCREASE THEIR OUTPUT TO TAKE ADVANTAGE OF THIS ADDITIONAL VOLUME KUWAIT IS SEEKING HERE TO RESTORE THE 400000 BARRELS A DAY IT WAS COERCED INTO CUTTING FROM ITS PRODUCTION FOR THE FOUR MONTHS BEGINNING MARCH 1 BUT IF KUWAIT GETS ANY ADDITIONAL VOLUME OTHERS INCLUDING NIGERIA AND IRAN WILL ALSO PRESS FOR HIGHER QUOTAS STILL IRAN'S OIL MINISTER GHOLAMREZA AGAZADEH SAID YESTERDAY OPEC SHOULD RESTRAIN RATHER THAN RAISE PRODUCTION WE NEED TO BE CAREFUL ABOUT THE MARKET HE SAID MOST OF THE OTHER OIL MINISTERS HOLD SIMILAR VIEWS LAST NIGHT THE MINISTERS WERE HOLDING INFORMAL TALKS ON PRODUCTION LEVELS AND WILL TAKE UP FORMALLY TODAY THE SENSITIVE ISSUES OF PRODUCTION CEILINGS AND INDIVIDUAL COUNTRY QUOTAS WE ARE TRYING TO ESTABLISH THE VARIOUS POSITIONS SAID JEAN PING GABON'S OIL MINISTER WHO WAS ELECTED OPEC PRESIDENT YESTERDAY 9306090116 930609 OTC FOCUS MARKET SLUMPS AGAIN AMID SELLOFF BUT 2 OFFERINGS HAVE SUCCESSFUL DEBUTS BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE OVERTHECOUNTER MARKET SLUMPED AMID SELLING IN TECHNOLOGY AND CASINO STOCKS BUT A PIZZA DELIVERER AND A GOLF SHAFT MANUFACTURER HAD SUCCESSFUL DEBUTS THE NASDAQ COMPOSITE INDEX TUMBLED 687 OR 099 TO 68774 DECLINING ISSUES OUTNUMBERED ADVANCERS 1630 TO 1090 ON TOTAL VOLUME OF 2623 MILLION SHARES UP FROM MONDAY'S 2479 MILLION ALDILA SURGED 52 TO 21 1/4 FROM AN OFFERING PRICE OF 14 ENDING THE DAY TWO POINTS ABOVE ITS FIRST TRADE THE SAN DIEGO COMPANY WHICH DESIGNS GRAPHITE GOLF SHAFTS OFFERED SHARES THROUGH LEAD UNDERWRITER ALEX BROWN & SONS PAPA JOHN'S INTERNATIONAL LEAPED OUT OF THE GATE TO FINISH AT 17 1/2 OFF 1/2 IN FIRSTDAY TRADING BUT STILL WELL ABOVE ITS INITIAL OFFERING PRICE OF 13 THE SIZE OF THE OFFERING WAS INCREASED TO 1450000 SHARES FROM AN ORIGINALLY ENVISIONED 13 MILLION THROUGH UNDERWRITERS LED BY MONTGOMERY SECURITIES THE LOUISVILLE KY COMPANY OPERATES AND FRANCHISES PIZZA DELIVERY AND CARRYOUT RESTAURANTS UNDER THE NAME PAPA JOHN'S BUT MUCH OF THE MARKET WAS DRAGGED DOWN BY SELLING IN CASINO AND TECHNOLOGY STOCKS GAMBLING STOCKS HAVE BEEN THE LEADERS OF THE RECENT RUNUP SAID ROBERT ANTOLINI HEAD OF OTC TRADING AT DONALDSON LUFKIN & JENRETTE WHEN THEY STARTED TO FALL BACK INVESTORS BECAME NERVOUS AND STARTED SELLING IN MANY SECTORS JOSEPH LOFTUS A SENIOR OTC TRADER AT SHEARSON LEHMAN BROTHERS SAID THE MARKET WILL CONTINUE TO DRIFT WHILE THE FEDERAL BUDGET IS UNDER DEBATE IN WASHINGTON RIGHT NOW STOCKS ARE VERY FRAGILE AS FAR AS PRICE IS CONCERNED HE SAID A LOT OF THESE STOCKS LIKE THE CASINOS ARE OVERPRICED AND CAN EASILY COME DOWN CASINO AND RIVERBOAT GAMBLING STOCKS CONTINUED TO FALL AS INVESTORS WORRIED ABOUT POSSIBLE SATURATION IN THE MARKET PARTICULARLY IN THE MISSISSIPPI AREA ANALYSTS SAID GRAND CASINOS PLUNGED 6 TO 37 3/4 CASINO MAGIC TOPPLED 6 5/8 TO 63 7/8 PRESIDENT RIVERBOAT CASINOS SANK 3 1/8 TO 39 3/4 ARGOSY GAMING FELL 1 1/2 TO 30 3/4 AND CASINO DATA SYSTEMS DROPPED 1 1/2 TO 12 3/4 BALLY GAMING TUMBLED 1 1/2 TO 12 1/8 LATE YESTERDAY THE DESIGNER OF GAMING MACHINES SAID IT TERMINATED THE DISTRIBUTOR OF ITS VIDEO LOTTERY TERMINALS IN LOUISIANA THE DISTRIBUTOR FILED FOR VOLUNTARY BANKRUPTCY PROCEEDINGS AND OWES LAS VEGASBASED BALLY ABOUT 81 MILLION INVESTORS TOOK PROFITS IN SEVERAL LARGE TECHNOLOGY STOCKS MICROSOFT SLIPPED 1 TO 92 1/4 INTEL FELL 1 1/2 TO 56 5/8 AND CISCO SYSTEMS EASED 1/2 TO 50 1/2 ONE OF THE DAY'S MOST ACTIVE STOCKS APPLE COMPUTER SLID 1 1/4 TO 49 1/2 ON 55 MILLION SHARES MABON SECURITIES ANALYST KEVIN MCCARTHY LOWERED HIS EARNINGS ESTIMATE TO 410 A SHARE FROM 430 FOR FISCAL 1993 APPLE EARNED 433 A SHARE FOR THE FISCAL YEAR ENDED SEPT 25 1992 MR MCCARTHY SAID HIS CONVERSATIONS WITH APPLE DEALERS INDICATE THAT MAY SALES WERE SOMEWHAT SOFT OUTBACK STEAKHOUSE DROPPED 2 TO 32 MORGAN STANLEY ANALYST KURT FEUERMAN DOWNGRADED HIS RATING TO STRONG HOLD FROM BUY OTHER STEAKHOUSE STOCKS ALSO FELL LONE STAR STEAKHOUSE & SALOON SLUMPED 1 1/2 TO 26 AND LONGHORN STEAKS SLID 1 TO 19 3/4 SEVERAL STEAKHOUSE AND CASINO ISSUES WERE INCLUDED IN A LIST OF STOCKS DEEMED OVERPRICED BY MONEY MANAGERS AND ANALYSTS IN YESTERDAY'S HEARD ON THE STREET COLUMN THE SAME COLUMN CITED SNAPPLE AS A COMPANY THAT COULD BE SQUEEZED BY COMPETITORS THE STOCK TOPPLED 3 1/4 TO 59 COSTCO WHOLESALE JUMPED 1 1/4 TO 17 THE KIRKLAND WASH COMPANY SAID COMPARABLE WAREHOUSE SALES OR SALES IN WAREHOUSES OPEN AT LEAST ONE YEAR ROSE 3 IN THE FOUR WEEKS ENDED JUNE 6 THE OPERATOR OF WHOLESALE CASHANDCARRY MEMBERSHIP WAREHOUSES SAID SALES TOTALED 591 MILLION FOR THE FOURWEEK PERIOD AN INCREASE OF 14 FROM 518 MILLION A YEAR AGO RYAN'S FAMILY STEAK HOUSES FELL 5/8 TO 7 1/2 BEAR STEARNS ANALYST JOSEPH BUCKLEY DOWNGRADED THE STOCK TO HOLD FROM BUY MR BUCKLEY CITED A DROP OF ABOUT 31 IN SAMESTORE SALES IN MAY FOR THE GREER SCBASED COMPANY HE CUT HIS SECONDQUARTER EARNINGS ESTIMATE TO 17 CENTS A SHARE FROM 18 CENTS THE COMPANY EARNED 16 CENTS A SHARE A YEAR EARLIER CEPHALON JUMPED 1 TO 12 1/2 CEPHALON AND SMITHKLINE BEECHAM PLC HAVE ENTERED INTO A COLLABORATION TO DEVELOP DRUGS TO TREAT STROKE AND OTHER NEUROLOGICAL DISORDERS BASED ON CEPHALON'S CALPAIN INHIBITOR TECHNOLOGY DR FRANK BALDINO JR PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CEPHALON IN WEST CHESTER PA SAID THE AGREEMENT CALLS FOR SMITHKLINE TO PROVIDE THE COMPANY WITH AS MUCH AS 25 MILLION IN RESEARCH PAYMENTS OVER FIVE YEARS 9306090115 930609 CPA GROUP OUTLINES SELFPOLICING PLAN TO BOOST PENALTIES FOR FLAWED AUDITS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON A LEADING ACCOUNTANTS' ORGANIZATION MOVED TO BOLSTER THE INDUSTRY'S BATTERED IMAGE BY ANNOUNCING A MAJOR SELFPOLICING PROGRAM THAT WOULD STEP UP DISCIPLINARY MEASURES FOR FAULTY OR FRAUDULENT AUDITS AT A NEWS CONFERENCE THE 310000MEMBER AMERICAN INSTITUTE OF CERTIFIED PUBLIC ACCOUNTANTS SAID THE PROGRAM WAS INTENDED TO REPAIR THE DAMAGE TO PUBLIC CONFIDENCE CAUSED BY A NUMBER OF HIGHLY PUBLICIZED BUSINESS FAILURES SINCE 1978 THE INSTITUTE HAS BEEN DISCIPLINING MEMBERS FOR SHODDY AUDITS BY REQUIRING ADDITIONAL REVIEWS OF THEIR WORK BUT SOME REGULATORS AND LEGISLATORS HAVE CALLED SUCH STEPS WEAK AND INEFFECTIVE IN PART BECAUSE THE NAMES OF THOSE DISCIPLINED WEREN'T DISCLOSED THE NEW EFFORT WHICH HAS BEEN APPROVED BY THE GROUP'S BOARD WOULD IMPOSE HARSHER PUNISHMENTS AND MAKE PUBLIC THE NAMES OF ACCOUNTANTS OR FIRMS DISCIPLINED BUT THE INSTITUTE SAID IT WON'T IMPOSE THE PENALTIES UNLESS CONGRESS AND REGULATORS AGREE TO BAR THE USE OF SUCH INFORMATION IN LAWSUITS AGAINST THE ACCOUNTANTS OTHER PARTS OF THE INSTITUTE'S PROPOSAL WOULD ALSO REQUIRE ACTION BY STATE AND FEDERAL LEGISLATORS AND REGULATORS IN AN INTERVIEW DOMINIC TARANTINO THE INSTITUTE'S CHAIRMANELECT SAID THAT THE PROPOSED PENALTIES WOULD BE FAIR SWIFT AND EFFECTIVE AND COULD HIT THE BIGGEST FIRMS WHICH SOME SMALL FIRM OFFICIALS SAY HAVE BEEN SOMEWHAT INSULATED FROM DISCIPLINARY ACTION AS WELL AS SMALL ONES THEY COULD INCLUDE FINES AND SUSPENSION OF THE RIGHT TO PRACTICE AS AN ACCOUNTANT HE SAID PHILIP CHENOK INSTITUTE PRESIDENT SAID REGULATORS' REACTIONS TO THE PROGRAM HAVE BEEN MOSTLY POSITIVE WALTER SCHUETZE CHIEF ACCOUNTANT OF THE SECURITIES AND EXCHANGE COMMISSION SAID HE IS ENCOURAGED BY THE PROGRAM BECAUSE FOR THE FIRST TIME THE INSTITUTE HAS SAID IN PLAIN ENGLISH THAT IT'S THE INDEPENDENT AUDITOR'S JOB TO DETECT FRAUD RATHER THAN MANAGEMENT'S RESPONSIBILITY CHARLES BOWSHER WHO HEADS THE GENERAL ACCOUNTING OFFICE SAID THE PROGRAM IS A STEP IN THE RIGHT DIRECTION AND INCLUDES STEPS I'VE BEEN RECOMMENDING FOR YEARS DECISIVE ACTION IS NEEDED TO BOLSTER THE PUBLIC TRUST BY STRENGTHENING THE FINANCIAL REPORTING SYSTEM SAID JAKE NETTERVILLE INSTITUTE CHAIRMAN AND MANAGING PARTNER OF ACCOUNTANTS POSTLETHWAITE & NETTERVILLE BATON ROUGE LA SOME FINANCIAL EXECUTIVES IMMEDIATELY OPPOSED PARTS OF THE PROGRAM SAYING SOME STEPS COULD SHARPLY BOOST AUDIT COSTS AND FORCE GREATER DISCLOSURE OF SUBJECTIVE DATA ABOUT BUSINESS RISKS THAT COULD BE CHALLENGED IN LITIGATION THE INSTITUTE RECOMMENDED THAT A NEW SEPARATE AUDITOR'S REPORT ATTEST WHETHER A COMPANY'S INTERNAL CONTROLS ARE EFFECTIVE IN PREVENTING FRAUD AND LEAKAGE OF ASSETS ACCOUNTANTS ESTIMATE SUCH A REPORT COULD BOOST AUDIT COSTS BETWEEN 5 AND 30 AND THE INSTITUTE ALSO CALLED FOR INCREASED CORPORATE DISCLOSURE OF BUSINESS RISKS INVOLVING CONCENTRATIONS OF CUSTOMERS REVENUE SOURCES SUPPLIERS AND UNCERTAINTIES ABOUT INVESTMENTS INTEREST RATES AND FOREIGNEXCHANGE EXPOSURE WE'RE ABSOLUTELY OPPOSED TO A SEPARATE AUDITOR'S OPINION ON INTERNAL CONTROLS BECAUSE IT DOESN'T ADD ANY VALUE AND COULD COST INDUSTRY A BUNDLE SAID P NORMAN ROY PRESIDENT OF THE 14000MEMBER FINANCIAL EXECUTIVES INSTITUTE MR ROY SAID HIS GROUP ALSO OPPOSES THE INCREASED DISCLOSURES BECAUSE THEY WOULD BE TOO SUBJECTIVE EASILY CHALLENGED AND BASED ON HINDSIGHT A UNIT OF THE ACCOUNTANTS' INSTITUTE THE AUDITING STANDARDS EXECUTIVE COMMITTEE HAS PROPOSED SUCH DISCLOSURES FOR ANNUAL FINANCIAL STATEMENTS ERIC L SCHINDLER A MEMBER OF THE INSTITUTE'S BOARD AND A VICE PRESIDENT FINANCE OF COLUMBIA PAINT & COATINGS CO SPOKANE WASH SAID HE SUPPORTS BOTH THE SEPARATE AUDITOR'REPORT AND THE INCREASED DISCLOSURES I HOPE MY COLLEAGUES IN THE BUSINESS WORLD WILL RECOGNIZE THAT WE ALL HAVE A STAKE IN A STRONG FINANCIAL REPORTING SYSTEM OTHER MEASURES IN THE INSTITUTE'S PROPOSAL WERE A YEARLONG BAN ON PARTNERS JOINING A COMPANY THEY ARE AUDITING AND REQUIRING AUDIT COMMITTEES TO BE COMPOSED SOLELY OF OUTSIDE DIRECTORS NOW ONLY REQUIRED OF COMPANIES CURRENTLY TRADED ON THE NEW YORK STOCK EXCHANGE THE INSTITUTE ALSO REITERATED A PLEA BY ACCOUNTANTS FOR TORT REFORM IT ASKED FEDERAL AND STATE LEGISLATORS TO LIMIT LIABILITY TO ACCOUNTANTS RESPONSIBLE FOR THE FAULTY AUDITS AND PERMIT CONSOLIDATION OF MULTIPLE FRAUD SUITS INTO A SINGLE FEDERAL CASE AND IT REQUESTED THAT ACCOUNTINGFIRM PARTNERSHIPS WITH JOINT AND SEVERAL LIABILITY BE ALLOWED TO INCORPORATE SHARPLY LIMITING DAMAGE EXPOSURE 9306090114 930609 TECHNOLOGY LOTUS AGREES TO BUY APPROACH SOFTWARE FOR ABOUT 20 MILLION CAMBRIDGE MASS LOTUS DEVELOPMENT CORP AS EXPECTED AGREED TO ACQUIRE CLOSELY HELD APPROACH SOFTWARE CORP REDWOOD CITY CALIF FOR ABOUT 20 MILLION IN CASH NOW AND UNDISCLOSED PAYMENTS TIED TO PERFORMANCE IN THE NEXT TWO YEARS APPROACH MAKES A 399 DATABASE PROGRAM FOR AVERAGE USERS THAT FILLS A GAP IN LOTUS'S PRODUCT LINE LOTUS SAID THAT AFTER APPROACH IS ALTERED TO BE MORE LIKE LOTUS'S OTHER PRODUCTS IT WILL BE SOLD AS PART OF THE LOTUS SMARTSUITE OF SOFTWARE PROGRAMS THAT ALSO INCLUDES THE 123 SPREADSHEET AND AMI PRO WORDPROCESSOR APPROACH WILL ALSO CONTINUE TO BE SOLD AS A STANDALONE PRODUCT LOTUS PRESIDENT JIM P MANZI SAID THAT 20 OF LOTUS'S REVENUE FROM SOFTWARE PROGRAMS FOR THE WINDOWS OPERATING SYSTEM COME FROM SELLING THE SUITE OF PRODUCTS WE WANT THAT TO BE HIGHER HE SAID HE ESTIMATED THAT MORE THAN 40 OF MICROSOFT CORP'S WINDOWS APPLICATION REVENUES COME FROM SELLING A SUITE OF PRODUCTS MICROSOFT PLANS TO INCLUDE A DATABASE IN ITS SUITE BORLAND INTERNATIONAL INC AND WORDPERFECT CORP RECENTLY STARTED JOINTLY SELLING A SUITE WITH A DATABASE LOTUS NEEDED A DATABASE TO COMPETE SAID DONALD DEPALMA AN ANALYST WITH MARKET RESEARCHER FORRESTER RESEARCH IN CAMBRIDGE MASS LOTUS SAID THAT IT WILL TAKE A PRETAX CHARGE OF UP TO 20 MILLION WHEN IT COMPLETES THE ACQUISITION IT SAID IT EXPECTS TO COMPLETE IT BY THE END OF THE CURRENT QUARTER JUNE 30 OR EARLY IN JULY IN THE 1992 SECOND QUARTER LOTUS REPORTED NET INCOME OF 149 MILLION OR 34 CENTS A SHARE ON SALES OF 2203 MILLION LOTUS SAID THAT IN THE SECOND HALF OF THE YEAR IT EXPECTS APPROACH TO CONTRIBUTE SALES OF LESS THAN 10 MILLION AND HAVE EXPENSES AT THE SAME LEVEL MEANING IT WON'T CONTRIBUTE ANY PROFITS APPROACH WHICH HAS 40 EMPLOYEES DECLINED TO DISCUSS ITS RESULTS 9306090113 930609 YIELDS ON CDS ROSE IN THE LATEST WEEK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS ROSE FRACTIONALLY IN THE LATEST WEEK WHILE YIELDS ON BROKERSOLD CDS WERE MIXED THE AVERAGE YIELD ON POPULAR SIXMONTH SMALLDENOMINATION OR SAVINGS CDS FOR INSTANCE ROSE TO 270 FROM 267 IN THE WEEK ENDED YESTERDAY ACCORDING TO A SURVEY BY BANXQUOTE MONEY MARKETS THE WILMINGTON DEL INFORMATION SERVICE REPORTED THAT THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS ROSE TO 480 FROM 479 ON LARGEDENOMINATION OR JUMBO CDS WHICH GENERALLY REQUIRE DEPOSITS OF AT LEAST 95000 THE AVERAGE YIELD ON SIXMONTH DEPOSITS ROSE TO 282 FROM 278 AND THE AVERAGE ON FIVEYEAR CERTIFICATES ROSE TO 502 FROM 498 ACCORDING TO THE BANXQUOTE SURVEY BANXQUOTE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS SLIPPED TO 315 FROM 318 WHILE THE AVERAGE ON FIVEYEAR BROKERSOLD CDS ROSE TO 530 FROM 525 THE BIGGEST CHANGE WAS IN TWOYEAR CDS SOLD BY MAJOR BROKERAGE FIRMS WHICH ROSE TO AN AVERAGE 419 FROM 404 ACCORDING TO BANXQUOTE A TABLE THAT BREAKS DOWN THE BANK AVERAGES BY STATE AND LISTS SOME OF THE HIGHESTYIELDING CDS AT BANKS AND THRIFTS APPEARS TODAY THE TABLE WHICH PREVIOUSLY APPEARED ON FRIDAYS REPLACES AN ABBREVIATED VERSION THAT FORMERLY APPEARED ON WEDNESDAYS 9306090112 930609 TRAVEL USAIR DECLARES WAR OVER FARES IN CALIFORNIA BY SUSAN CAREY STAFF REPORTER OF THE WALL STREET JOURNAL ANOTHER SHUTTLE FARE WAR HAS BROKEN OUT BUT THIS TIME OVER THE SKIES OF CALIFORNIA THE PRICING INITIATIVE SPARKED YESTERDAY BY USAIR AND PROMPTLY MATCHED BY MARKET LEADER UNITED AIRLINES SLASHES THE ONEWAY UNRESTRICTED FARE BETWEEN LOS ANGELES AND SAN FRANCISCO BY 36 TO 89 USAIR WHICH REGARDS AS A SHUTTLE SERVICE THE 10 HOURLY ROUND TRIPS IT OPERATES DAILY BETWEEN THE TWO CITIES COMMANDS 25 OF THE MARKET ON THE ROUTE COMPARED WITH UNITED'S 52 DELTA AIR LINES THE OTHER BIG PLAYER WITH A 17 MARKET SHARE SAID IT WAS STUDYING THE MATTER BUT HADN'T DECIDED IF IT WOULD MATCH THE OTHERS USAIR AND UNITED ALSO INTRODUCED A ONEWAY 49 WEEKEND TARIFF THAT PRICE WAS LOW ENOUGH TO PROMPT PRICELEADER SOUTHWEST AIRLINES TO DECLARE IT WOULD CUT ITS REGULAR ONEWAY 69 TARIFF BY 20 ON WEEKENDS ON ITS COMPETING ROUTES TO OAKLAND CALIF FROM BURBANK ONTARIO AND LOS ANGELES USAIR IS TRYING TO GO AFTER THE SOUTHWEST FOLKS SAID THOM NULTY PRESIDENT OF ASSOCIATED TRAVEL A CORPORATE AGENCY IN SANTA ANA CALIF THE PRICE WENT DOWN RATHER DRAMATICALLY IT'S EXCELLENT FOR OUR MARKET THE USAIR GROUP INC UNIT ALSO INSTIGATED SHUTTLE WARS ON THE EAST COAST AND IN FLORIDA IN RECENT MONTHS AND CUT PRICES ON ALL ITS NORTHEAST NONSTOP ROUTES UNDER 750 MILES BUT THE CALIFORNIA SKIRMISH FEATURES SOME ADDED PERKS USAIR SAID IT IS OFFERING FREE ONEDAY AIRPORT PARKING AT EITHER TERMINAL AN UPGRADE OF CAR MODEL IF THE FLIER RENTS A CAR FROM ALAMO RENT A CAR AND HEFTY FREQUENTFLIER MILEAGE BONUSES UNITED WHICH OPERATES 28 ROUND TRIPS A DAY SAID IT WILL ADD SIMILAR FEATURES WE'RE HOPING TO GET MANY OF THOSE WHO WERE DRIVING OR FLYING WITH THE OTHER AIRLINES SAID A USAIR SPOKESMAN IT'S A RESTRUCTURING OF FARES IN THIS MARKET TO APPEAL TO BUSINESS TRAVELERS THE NEW FARES HAVE NO EXPIRATION THE NEW TARIFFS MAY INSPIRE THE SLACK CALIFORNIA CORRIDOR MARKET SAID JOAN STRAHLER DIRECTOR OF AVIATION CONSULTING FOR AVITAS INC OF RESTON VA IN 1991 A YEAR OF BIG PRICE WARS SOME 69 MILLION FLIERS TRAVELED BETWEEN ALL THE BAY AREA AIRPORTS AND THE VARIOUS AIRPORTS IN THE LOS ANGELES BASIN SHE SAID LAST YEAR WITHOUT SUCH INITIATIVES ONLY 59 MILLION FLIERS DID SEPARATELY SOUTHWEST SAID IT WILL ADD 18 FLIGHTS A DAY TO ITS SCHEDULE AT THE SAN JOSE CALIF AIRPORT THE NEW FLIGHTS SOME OF WHICH WERE PREVIOUSLY FLOWN BY AMR CORP'S AMERICAN AIRLINES WILL BE IN PLACE BY AUG 18 AND WILL BRING TO 29 SOUTHWEST'S DAILY SCHEDULE OUT OF SAN JOSE NEW ROUTES WILL LINK THAT CITY WITH LOS ANGELES ONTARIO AND RENO NEV THE COMPANY SAID AS WITH ITS OTHER INTRACALIFORNIA FLIGHTS SOUTHWEST CHARGES 69 FOR AN UNRESTRICTED ONEWAY TICKET 9306090111 930609 ALLSTATE UNIT GETS UPGRADE IN RATING ON CLAIMS PAYING NEW YORK STANDARD & POOR'S CORP UPGRADED THE CLAIMSPAYING ABILITY RATING OF ALLSTATE CORP'S INSURANCE UNIT ONE WEEK AFTER THE COMPANY INCREASED ITS CAPITAL WITH A FIRSTTIME OFFERING OF STOCK THE CLAIMS RATING WAS UPGRADED TO DOUBLEA FROM DOUBLEAMINUS THE RATING AGENCY ALSO ASSIGNED A SINGLEA RATING TO ALLSTATE'S 1 BILLION SHELF REGISTRATION OF SENIOR DEBT ALLSTATE'S RATINGS WERE LOWERED LAST FALL FOLLOWING ITS ANNOUNCEMENT THAT IT WOULD SUFFER UNPRECEDENTED LOSSES DUE TO LAST AUGUST'S HURRICANE ANDREW THE COMPANY'S LATEST ESTIMATE IS THAT IT WILL SUFFER A LOSS OF 165 BILLION DUE TO THE STORM THE COMPANY WOULD HAVE BEEN DOWNGRADED AGAIN HAD IT NOT RAISED MORE CAPITAL SAID S&P ANALYST ALAN LEVIN THE PUBLIC OFFERING ALONG WITH OTHER FINANCIAL MOVES BOOSTED ALLSTATE'S CAPITAL BY 125 BILLION TO 624 BILLION A SPOKESMAN FOR ALLSTATE BASED IN NORTHBROOK ILL SAID THE COMPANY WAS PLEASED BY THE UPGRADE BUT HAD NO ADDITIONAL COMMENT A CLAIMSPAYING ABILITY RATING MEASURES AN INSURANCE COMPANY'S ABILITY TO MEET OBLIGATIONS TO POLICYHOLDERS THE UPGRADE ENHANCES ALLSTATE'S COMPETITIVE POSITION CONSUMERS PREFER TO BUY INSURANCE FROM COMPANIES WITH SOLID FINANCIAL RATINGS DEBT RATINGS MEASURE HOW EASILY A COMPANY CAN PAY INVESTORS THE STRONG INITIAL RATING ON THE SENIOR DEBT ALLOWS ALLSTATE TO ISSUE OBLIGATIONS AT A LOWER INTEREST RATE THAN ITS PARENT SEARS ROEBUCK & CO SEARS IS RATED TRIPLEBPLUS BY S&P ALLSTATE WENT PUBLIC LAST WEEK IN THE BIGGEST INITIAL PUBLIC OFFERING EVER BY A US COMPANY RAISING 24 BILLION IN COMPOSITE TRADING YESTERDAY ON THE NEW YORK STOCK EXCHANGE ALLSTATE CLOSED AT 2775 DOWN 375 CENTS PER SHARE THE COMPANY WENT PUBLIC AT 27 A SHARE 9306090110 930609 CORPORATE FOCUS COURT BATTLE OVER THE FATE OF EXECUTIVE LIFE HEATS UP POLICYHOLDERS HAVE NEW OBJECTIONS TO PLANS FOR SALE TO FRENCH GROUP BY FREDERICK ROSE STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES AS A CALIFORNIA COURT OPENS HEARINGS TODAY ON THE FINAL DISPOSITION OF FAILED EXECUTIVE LIFE INSURANCE CO THE FUTURE OF THE COMPANY IS STILL FACING MAJOR OBSTACLES DESPITE PRESSURE FROM REGULATORS AND THE INSURANCE INDUSTRY PLANS TO RESOLVE THE NATION'S SECONDLARGEST INSURANCE FAILURE AND ITS 340000 POLICIES ARE RUNNING INTO NEW OBJECTIONS FROM ITS LARGEST GROUP OF POLICYHOLDERS MORE THAN TWO YEARS AFTER JUNK BONDLADEN EXECUTIVE LIFE WAS SEIZED BY CALIFORNIA REGULATORS AND AFTER MORE THAN 70 MILLION IN LAWYERS' AND CONSULTANTS' FEES DEBATE OVER HOW TO DEAL WITH THE COMPANY'S 10 BILLION IN POLICIES REMAINS RANCOROUS STARTING TODAY THE CALIFORNIA STATE COURT WILL CONSIDER WHETHER TO APPROVE ONCE AND FOR ALL THE LONGPENDING SALE OF EXECUTIVE LIFE TO A FRENCH INVESTOR GROUP LED BY MUTUELLE ASSURANCE ARTISANALE DE FRANCE PROPOSED TERMS INCLUDE A DETAILED ROAD MAP OF HOW EXECUTIVE LIFE'S MORE THAN 7 BILLION IN ASSETS WILL BE DIVIDED AND WHO WILL GET WHAT AS THE COMPANY IS TAKEN THROUGH A LIQUIDATION PROCEEDING AND THEN SOLD TO THE RECENTLY CREATED AURORA NATIONAL LIFE ASSURANCE CO OWNED BY FRENCH INVESTORS WHETHER THAT SALE SHOULD PROCEED OR NOT AND UNDER WHAT TERMS WILL BE TESTILY DEBATED OUR OBJECTIVE IS TO GET THIS PLAN SETTLED AS SOON AS POSSIBLE SAYS RICHARD BAUM CALIFORNIA'S CHIEF DEPUTY COMMISSIONER OF INSURANCE WE COULDN'T AGREE MORE THAT SPEED IS VITAL BUT REGULAR POLICYHOLDERS ARE BEING HURT BY THIS PLAN RETORTS MAUREEN MARR WHO HEADS A POLICYHOLDER GROUP THAT HAS UNTIL RECENTLY SUPPORTED REGULATORS' PLANS FOR EXECUTIVE LIFE THE PROCEEDINGS IN A LOS ANGELES COURTROOM ARE EXPECTED TO LAST SEVERAL WEEKS THEY WILL CONFRONT NOT ONLY NEW OBJECTIONS FROM CONVENTIONAL LIFEINSURANCE POLICYHOLDERS BUT ALSO CALLS BY TRUSTEES FOR 165 BILLION OF EXECUTIVE LIFEBACKED MUNICIPAL BONDS WHO ARE LONGTIME OPPONENTS OF THE SALES PLAN TO RESCIND A YEAROLD 325 BILLION SALE OF EXECUTIVE LIFE'S HIGHYIELD BOND PORTFOLIO TO ALTUS FINANCE A UNIT OF CREDIT LYONNAIS THE FRENCH BANK THAT SALE EXECUTED NEAR THE BOTTOM OF THE JUNK BOND MARKET HAS BEEN AT THE CORE OF THE REHABILITATION PLAN A STRONG POSSIBILITY EMERGED RECENTLY THAT THE FRENCH INVESTOR GROUP MAY BE JOINED IN ITS BID FOR EXECUTIVE LIFE BY SUNAMERICA INC A LOS ANGELESBASED FINANCIAL SERVICES COMPANY ALTHOUGH DETAILS OF THE POSSIBLE INVESTMENT WEREN'T DISCLOSED AND THE COMPANIES DECLINED TO COMMENT SUNAMERICA WHICH EARLIER BID FOR ALL OF EXECUTIVE LIFE RESERVED ITS RIGHT TO JOIN THE REHABILITATION HEARINGS IN A COURT FILING SUBSEQUENTLY ITS LAWYERS CONFIRMED SUNAMERICA'S INTEREST THE ADDITION OF SUNAMERICA TO THE AURORA INVESTOR GROUP WOULD ADD AN AMERICAN FLAVOR TO THE NEW COMPANY AND SHARPLY REDUCE ONGOING COSTS IF SUNAMERICA WERE TO TAKE OVER SERVICING POLICIES CENTRAL TO MOST OF THE LATEST ARGUMENTS WAS A MARCH DECISION BY THE CALIFORNIA STATE COURT OF APPEALS THAT RECAST MAJOR FEATURES OF THE PLAN THE DECISION REQUIRED CALIFORNIA REGULATORS TO SET THE ALLIMPORTANT LIQUIDATION DATE FOR THE COMPANY NOT AT APRIL 11 1991 WHEN THE COMPANY WAS SEIZED BUT AT A DATE CLOSE TO COMPLETION OF THE SALE THAT MEANS MORE ASSETS BUT DIFFERENT LIABILITIES AS WELL THE APPELLATE COURT DECISION BARRED PLANS TO VALUE THE EXECUTIVE LIFEBASED MUNICIPAL BONDS DEPENDING ON WHEN HOLDERS BOUGHT THEM THE STARTING POINT FOR ALL MUNIGICS MUST BE THEIR FACE VALUE THE COURT HELD AS WELL PLANS BETWEEN THE REGULATOR AND THE FRENCH INVESTOR GROUP TO ACCORD DIFFERENT TYPES OF ACCOUNTING VALUES TO DIFFERENT TYPES OF INSURANCE POLICIES AND ANNUITIES ALSO WERE SCOTCHED BY THE COURT WHILE REGULATORS UNDER CALIFORNIA INSURANCE COMMISSIONER JOHN GARAMENDI AND THE FRENCH INVESTORS THROUGH AURORA NATIONAL LIFE SWIFTLY REWROTE THE SALES AGREEMENT THE NEW TERMS ARE STEPPING ON NEW TOES ORDINARY POLICYHOLDERS HAVE SUDDENLY FELT HARD DONE BY THE ACTION NETWORK FOR VICTIMS OF EXECUTIVE LIFE KNOWN AS ANVEL WHICH DIRECTLY REPRESENTS ABOUT 2500 POLICYHOLDERS HAS BEGUN TO COMPLAIN ANVEL HAS BEEN CAST THROUGHOUT THE COURT PROCEEDINGS BY CALIFORNIA'S INSURANCE COMMISSIONER JOHN GARAMENDI AND OTHERS AS THE PRINCIPAL REPRESENTATIVE FOR THE APPROXIMATELY 160000 ORDINARY POLICIES BUT RECENTLY THE GROUP STOPPED COUNTING ON THE INSURANCE COMMISSIONER TO REPRESENT ITS INTERESTS AND HIRED A LAWYER WE REALIZED WE HAD TO GO OUR SEPARATE PATHS SAYS MS MARR WHO IS ANVEL'S COORDINATOR AS ANVEL SEES IT RECASTING DETAILS OF THE PLAN PRINCIPALLY CHANGES IN VALUATION OF POLICIES WILL COST ORDINARY POLICYHOLDERS AND ANNUITANTS MORE THAN 200 MILLION MORE THAN THE EARLIER PLAN ACCORDING TO MS MARR WHILE THE APPELLATE COURT DECISION IS DESIGNED TO EVEN OUT ACCOUNT VALUATIONS ON ALL SIDES COMMISSIONER GARAMENDI AND THE FRENCH BUYERS INTRODUCED APPLESANDORANGES DIFFERENCES AS THEY REWORKED THE PLAN MOREOVER COMPLAINS ANVEL THE REWORKED SALES PLAN SUDDENLY SLIDES IN NEARLY 7 MILLION IN NEW ANNUAL FEES THAT WEREN'T IN ORIGINAL POLICIES NOR THE EARLIER PLAN IN AN 11THHOUR EFFORT TO WRENCH ANVEL INTO ITS CAMP MR GARAMENDI AND AURORA NATIONAL PROPOSED A NEW POT OF MONEY ESTIMATED BY ANVEL AT A BIT OVER 20 MILLION THAT WOULD BE AVAILABLE TO ANVEL MEMBERS ONLY IF THE ORGANIZATION WITHDREW ALL OF ITS OBJECTIONS TO THE SALES PLAN NO LATER THAN FRIDAY FAILING THAT SAYS THE PROPOSAL ANVEL AND EACH OF ITS MEMBERS WOULD BE FOREVER BARRED FROM PARTICIPATING IN THE ADDED FUNDS CALIFORNIA REGULATORS NOTE THAT MOST LEGAL CHALLENGES IN THE EXECUTIVE LIFE CASE HAVE ARISEN BECAUSE MR GARAMENDI TRIED TO MAXIMIZE RETURNS FOR CONVENTIONAL POLICYHOLDERS ONE BY ONE THOSE EFFORTS HAVE BEEN REVERSED BY THE COURTS DIMINISHING THE LIKELY RETURN BEFORE STATE INSURANCE GUARANTYFUND REIMBURSEMENTS TO ABOUT 77 CENTS ON THE DOLLAR TODAY FROM 90 CENTS WHEN EXECUTIVE LIFE WAS SEIZED IN THE PROCESS MR GARAMENDI HAS ALSO BEEN COMPELLED TO MAKE IT MORE ATTRACTIVE FOR POLICYHOLDERS TO OPT OUT WITHDRAWING FUNDS RATHER THAN KEEP A POLICY WITH AURORA NATIONAL IN MANY WAYS ANVEL'S OBJECTIONS HAVE COME AS A SURPRISE FOR PROPONENTS OF THE PLAN WHO HAVE HAD NEARCONSTANT SUPPORT FROM THE GROUP MOREOVER IT'S A POINT OF POLITICAL SENSITIVITY FOR THE AMBITIOUS MR GARAMENDI WHO IS CALIFORNIA'S FIRST ELECTED INSURANCE COMMISSIONER SEEKING TO SOLVE THE EXECUTIVE LIFE SITUATION QUICKLY MR GARAMENDI AND HIS OFFICIALS HAVE SETTLED WITH ALMOST ALL PROSPECTIVE OPPONENTS AGREEING TO EVERYTHING FROM CHANGES IN THE TREATMENT OF GUARANTEED INVESTMENT CONTRACTS HELD BY PENSION FUNDS TO PAYING AS MUCH AS 625 MILLION IN LEGAL FEES FOR TEXAS COMMERCE BANKEL PASO PAYMENT OF THE LEGAL FEES WAS SET IN A SURPRISE PACT MONDAY WITH THE BANK AS THE TRUSTEE FOR ONE OF THE EIGHT MUNICIPAL BOND ISSUES THE TRUSTEES OF THE MUNICIPAL BONDS HAVE FOUGHT MR GARAMENDI'S PLAN SINCE THE DAY EXECUTIVE LIFE WAS TAKEN OVER THE SETTLEMENT WITH TEXAS COMMERCE BANKEL PASO WHILE APPEARING TO DRIVE A WEDGE IN THE MUNIGIC INTERESTS WON'T AFFECT THE CLAIMS OF THE REMAINING MUNIGIC'S SAYS PHILIP WARDEN THE SAN FRANCISCO LAWYER WHO REPRESENTS ALL OTHER MUNIGIC TRUSTEES MR WARDEN IS ASKING THE COURT TO UNWIND THE EARLIER JUNK BOND SALE TO ALTUS FINANCE ARGUING THAT THE APPELLATE COURT DECISION THIS MARCH FORMALLY BROKE THE ALTUS AND AURORA BIDS FOR THE BOND PORTFOLIO AND THE INSURANCE COMPANY MR WARDEN BELIEVES THE JUNK BOND PORTFOLIO TODAY HAS A VALUE AS MUCH AS 2 BILLION MORE THAN THE 325 BILLION THAT ALTUS FINANCE PAID FOR IT MR GARAMENDI AND HIS LAWYERS ASSERT THAT THE JUNKBOND SALE WAS SEVERED AND FORMALLY COMPLETED LAST YEAR 9306090109 930609 GELMAN SCIENCES PLANS VENTURE ANN ARBOR MICH GELMAN SCIENCES INC SAID IT SIGNED A LETTER OF INTENT TO CREATE A JOINT VENTURE IN SHANGHAI CHINA TO MARKET MICROFILTRATION PRODUCTS IN A DEAL VALUED AT 14 MILLION SHANGHAIGELMAN FILTER CO WILL BE JOINTLY OWNED BY JI CHENG FILTER FACTORY SHANGHAI AND GELMAN SCIENCES THE COMPANY WILL MANUFACTURE MEMBRANE FILTERS AND CARTRIDGES PRIMARILY FOR SALE TO THE PHARMACEUTICAL INDUSTRY THE SHANGHAI COMPANY WILL CONTRIBUTE PLANT PROPERTY EQUIPMENT AND CASH TO THE VALUE OF 7 MILLION GELMAN SCIENCES WILL CONTRIBUTE TECHNOLOGY EQUIPMENT MARKETING EXPERTISE AND WILL OWN 45 OF THE COMPANY 9306090108 930609 FOREIGN EXCHANGE DOLLAR HITS ANOTHER LOW AGAINST YEN FIRMS IN RELATION TO OTHER CURRENCIES BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE DOLLAR FELL TO YET ANOTHER RECORD LOW AGAINST THE YEN ON TECHNICALLY PROPELLED SELLING AND PAID LITTLE HEED TO SEVERAL ROUNDS OF CENTRAL BANK INTERVENTION DURING NORTH AMERICAN TRADING TUESDAY AGAINST OTHER MAJOR CURRENCIES THE DOLLAR ENDED MOSTLY FIRMER ON AN ABSENCE OF FRESH NEWS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 16245 MARKS UP FROM 16205 MARKS LATE MONDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10640 YEN DOWN FROM 10720 YEN STERLING WAS TRADING AT 15202 DOWN FROM 15220 THE AUSTRALIAN DOLLAR ALSO WEAKENED AGAINST BOTH THE US DOLLAR AND THE YEN TUESDAY DESPITE THE RESERVE BANK OF AUSTRALIA'S INTERVENTION TO SUPPORT THE AUSTRALIAN CURRENCY TRADERS SAID THE MOVE REFLECTED THE US DOLLAR'S SLIDE AGAINST THE YEN DEALERS SAID THERE WAS LITTLE NEWS BEHIND THE DOLLAR'S TUMBLE VERSUS THE YEN THE US CURRENCY'S DESCENT BEGAN IN ASIAN TRADING FOR THREE CONSECUTIVE SESSIONS THE DOLLAR HAD FAILED TO BREAK THROUGH TECHNICAL RESISTANCE AT 108 YEN AND A NUMBER OF PLAYERS DECIDED TO SELL DOLLAR POSITIONS TUESDAY AS A RESULT OF THIS SAID DENNIS PETTIT FOREIGNEXCHANGE MANAGER AT LONGTERM CREDIT BANK OF JAPAN CONCERNS ABOUT SCHEDULED USJAPAN TRADE TALKS ALSO CONTRIBUTED TO THE DOLLAR'S DROP SAID WIN THIN AN INTERNATIONAL ECONOMIST AT MCM CURRENCYWATCH THIS WEEK A NEW ROUND OF USJAPAN TRADE DISCUSSIONS WILL BEGIN LATER THIS WEEK AND THE US SEEMS INTENT ON GAINING BROAD NEW ACCESS TO JAPANESE MARKETS FOR US BUSINESSES AND A REDUCTION IN JAPAN'S HUGE TRADE SURPLUS MR THIN SAID THE DISCUSSIONS MIGHT CAUSE TENSIONS BETWEEN THE TWO NATIONS TO FLARE AND IN THE MARKET'S CURRENT CLIMATE THIS SUPPORTS THE YEN MR THIN SAID THERE'S A FEAR THE US MIGHT JUST LET THE DOLLAR GO LOWER HE SAID SENIOR JAPANESE FINANCE OFFICIALS HAVE CALLED REPEATEDLY FOR A HALT TO THE YEN'S RECENT SURGE CENTRAL BANK INTERVENTION ALSO HAS BEEN AIMED AT ACHIEVING THIS GOAL ANOTHER FACTOR EARLY TUESDAY WAS POSITION SQUARING BY ASIAN PLAYERS AHEAD OF A JAPANESE HOLIDAY WEDNESDAY MR THIN SAID JAPANESE MARKETS WILL BE CLOSED WEDNESDAY FOR THE MARRIAGE OF CROWN PRINCE NARUHITO THESE ASIAN DOLLAR SALES PUSHED THE CURRENCY THROUGH TECHNICAL SUPPORT AT 107 YEN WHICH TRIGGERED NEW SELLING THAT ACCELERATED ITS DROP DEALERS SAID AS IN THE RECENT PAST THE BANK OF JAPAN WAS SEEN INTERVENING AT SEVERAL LEVELS TO SUPPORT THE DOLLAR AND AS BEFORE THE INTERVENTION HAD LITTLE IMPACT THEY SAID THE DOLLAR FELL TO AN INTRADAY LOW OF 106 YEN A NEW POSTWORLD WAR II RECORD AT MIDDAY IN NORTH AMERICA THE PREVIOUS RECORD 10650 YEN WAS SET JUNE 1 TRADERS SAID THE FEDERAL RESERVE BANK OF NEW YORK INTERVENED AFTER THAT RECORD WAS SET THE FED BOUGHT DOLLARS AT SEVERAL LEVELS BETWEEN 1061010635 YEN THEY ADDED THE FED SPENT ABOUT 150 MILLION TO 200 MILLION IN ITS ACTIVITIES TUESDAY PLAYERS ESTIMATED BUT WHILE THE INTERVENTION STABILIZED THE DOLLAR IT FAILED TO MAKE IT REBOUND WHEN THE MARKET SEES CENTRAL BANK INTERVENTION THAT'S ALMOST AN INCENTIVE TO SELL SAID MICHEAL SCHAEFER FOREIGNEXCHANGE MANAGER AT NORWEST BANK CORP IN MINNEAPOLIS AT THIS POINT THOUGH THE CENTRAL BANKS AREN'T THERE TO TURN THE DOLLAR'S TIDE THEY'RE JUST THERE TO SLOW IT DOWN MR SCHAEFER ADDED THE YEN'S STRENGTH AGAINST THE DOLLAR SPILLED OVER INTO STRENGTH VERSUS OTHER CURRENCIES AS WELL PLAYERS SAID LATE TUESDAY IN NEW YORK THE MARK TRADED AT 6548 YEN DOWN FROM 6618 YEN LATE MONDAY THE MARK'S INTRADAY LOW OF 6539 YEN WAS A POSTWORLD WAR II RECORD THE AUSTRALIAN DOLLAR DROPPED AGAINST BOTH THE YEN AND THE US DOLLAR IN SYMPATHY WITH THE US DOLLAR'S PLUNGE DEALERS SAID THE RESERVE BANK OF AUSTRALIA WAS SEEN BUYING AUSTRALIAN DOLLARS AROUND 67 US CENTS BUT WITHOUT SUCCESSFULLY STOPPING THE AUSTRALIAN DOLLAR'S SLIDE THE AUSTRALIAN CURRENCY FINALLY FOUND SUPPORT AROUND 6685 CENTS AND THEN BOUNCED UP A BIT THERE WERE RUMORS MORE AGGRESSIVE CENTRAL BANK INTERVENTION WAS POSSIBLE IF THE UNIT DROPPED FURTHER PLAYERS SAID LATE TUESDAY IN NEW YORK THE AUSTRALIAN DOLLAR TRADED AT 6693 US CENTS DOWN FROM 6719 CENTS LATE MONDAY 9306090107 930609 US LAUNCH OF POLAROID CAPTIVA CAMBRIDGE MASS POLAROID CORP FORMALLY LAUNCHED ITS NEW CAPTIVA CAMERA IN THE US AT A RETAIL PRICE OF 119 TO 139 CAPTIVA IS SMALLER AND LIGHTER THAN THE COMPANY'S STANDARD INSTANT CAMERA AND CAN HOLD PHOTOS INTERNALLY RATHER THAN SPITTING THEM OUT AS ITS OTHER MODELS DO HOWEVER THE PHOTOS ARE 2 7/8 INCHES BY 2 1/8 INCHESSMALLER THAN THE PRINTS PRODUCED BY POLAROID'S OTHER CAMERAS CAPTIVA WHICH WAS CODENAMED JOSHUA WHILE UNDER DEVELOPMENT WAS INTRODUCED IN EUROPE LAST FALL UNDER THE NAME POLAROID VISION THE COMPANY HAS DECLINED TO DISCLOSE SALES LEVELS THE CAMERA WILL BE AVAILABLE IN THE US THIS SUMMER 9306090106 930609 MARKETING & MEDIA BARRY DILLER PLANS OVERSEAS VENTURE WITH FORMER BOSS MURDOCH'S BRITISH SKY TO WORK WITH QVC ON DEVELOPING HOMESHOPPING SERVICE BY JACK REJTMAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK BARRY DILLER AND RUPERT MURDOCH ARE BACK TOGETHER AGAIN OR AT LEAST THEY SHARE A COMMON INTEREST MR DILLER STUNNED THE TELEVISION INDUSTRY WHEN HE ABRUPTLY RESIGNED AS CHIEF EXECUTIVE OF THE FOX INC UNIT OF MR MURDOCH'S NEWS CORP EARLY LAST YEAR ONLY TO TURN UP AS THE CHAIRMAN AND PARTOWNER OF HOMESHOPPING EMPIRE QVC NETWORK INC BUT YESTERDAY MR DILLER AND MR MURDOCH UNVEILED PLANS FOR AN OVERSEAS VERSION OF QVC WHICH WILL BEAM 24HOURADAY SALES PITCHES FOR FASHION AND TRINKETS TO VIEWERS IN THE UK IRELAND AND MOST OF EUROPE THAT MARKS A SOMEWHAT SURPRISING REUNION OF MR DILLER AND HIS FORMER BOSS QVC THE BIGGEST HOMESHOPPING NETWORK COMPANY WITH MORE THAN 1 BILLION IN ANNUAL SALES AND BRITISH SKY BROADCASTING WHICH IS HALFOWNED BY NEWS CORP SAID THE NEW SERVICE WILL BE TRANSMITTED LIVE FROM LONDON AND WILL BE SIMILAR TO WHAT QVC OFFERS TO 44 MILLION CABLE HOMES IN THE US THE AGREEMENT FOLLOWS QVC'S APRIL ANNOUNCEMENT THAT IT AND GRUPO TELEVISA SA DE CV WOULD JOIN FORCES TO PROVIDE MORE OF THE SAME TO TELEVISION SHOPPERS IN MEXICO SPAIN AND LATIN AMERICA IN SPANISH AS WELL AS SERVING BRAZIL AND PORTUGAL IN PORTUGUESE QVC AND BSKYB WILL SPLIT ANY PROFITS 5050 THE PARTNERS SAID THEY PLAN TO START THE NEW SERVICE OCT 1 QVC MAY BENEFIT FROM BSKYB'S ABILITY TO BEAM THE NEW HOMESHOPPING FARE TO THE HOMES ITS SATELLITE SERVICE ALREADY REACHES IN THE UK BUT IT COULD BE A SLOW START BSKYB REACHES ONLY FOUR MILLION HOMES WITH ITS SIXCHANNEL SERVICE TINY COMPARED WITH QVC'S US AUDIENCE THE NEW SERVICE ALSO WILL BE IN ENGLISH RATHER THAN IN EACH COUNTRY'S LANGUAGE ANOTHER POTENTIAL OBSTACLE DESPITE PERSISTENT RUMORS THAT MR DILLER LEFT FOX IN PART BECAUSE HE WAS FRUSTRATED BY MR MURDOCH'S INCREASED INVOLVEMENT AT THE NETWORK BOTH MEN ISSUED STATEMENTS THAT WENT TO GREAT LENGTHS TO EXPRESS HOW HAPPY THEY WERE ABOUT REUNITING WE ARE AMAZED AT THE GROWTH OF DIRECT SELLING BY TELEVISION AND THINK THIS WILL ADD A NEW DIMENSION TO BSKYB MR MURDOCH SAID WE ARE DELIGHTED THAT BARRY DILLER WILL BE LEADING THIS EXCITING VENTURE MR DILLER IN HIS STATEMENT SAID BSKYB WAS A TERRIFICALLY CONCEIVED COMPANY AND THAT FOR ME PERSONALLY I'M GENUINELY HAPPY TO BE ABLE TO REUNITE IN AN ASSOCIATION WITH RUPERT MURDOCH AND HIS NEWS CORP 9306090105 930609 BUSINESS BRIEF GENERAL DYNAMICS CORP LAUNCH'S FAILURE IS TRACED TO AN OUTOFPOSITION SCREW GENERAL DYNAMICS CORP SAID THE MARCH MALFUNCTION OF AN ATLASCENTAUR ROCKET WAS CAUSED BY AN ADJUSTING SCREW IN A FUEL REGULATOR THAT ROTATED OUT OF ITS PROPER POSITION THE PROBLEM THE THIRD IN EIGHT LAUNCHES FOR THE COMPANY CAUSED A NAVY SATELLITE BUILT BY GENERAL MOTORS CORP UNIT HUGHES AIRCRAFT CO TO BE PLACED IN A LOW USELESS ORBIT A GENERAL DYNAMICS TEAM OF INVESTIGATORS REACHED THE CONCLUSION THE TEAM INCLUDED REPRESENTATIVES OF THE ROCKWELL INTERNATIONAL INC UNIT THAT PROVIDED THE BOOSTER ENGINE INCLUDING THE REGULATOR INVOLVED AN INDEPENDENT REVIEW BOARD LED BY RETIRED AIR FORCE LT GEN FORREST MCCARTNEY CONCURRED WITH THE FINDING THE NAVY SAID THE FAILED MISSION COST 138 MILLION GENERAL DYNAMICS TOOK A 25 MILLION PRETAX CHARGE IN THE FIRST QUARTER TO REFLECT ITS LOSS ON THE MISSION BEYOND INSURANCE REIMBURSEMENT A GENERAL DYNAMICS UNIT PRODUCES AND OPERATES THE ATLASCENTAUR LAUNCH SYSTEMS 9306090104 930609 ALLEN & CO CONNECTS HOLLYWOOD WITH WALL STREET BY RANDALL SMITH STAFF REPORTER OF THE WALL STREET JOURNAL BEFORE SEAGRAM CO ACQUIRED 57 OF TIME WARNER INC LAST MONTH PRESIDENT EDGAR BRONFMAN JR TURNED TO ALLEN & CO FOR ADVICE FOR ALLEN & CO'S PRESIDENT HERBERT ALLEN JR SEAGRAM'S 700 MILLION STAKE IN TIME WARNER IS ONLY THE LATEST IN A SERIES OF KEY ROLES IN GLITZY DEALS BRIDGING HOLLYWOOD AND WALL STREET HE'S THE PREEMINENT INVESTMENT BANKING NAME IN THE ENTERTAINMENT BUSINESS SAYS EMANUEL GERARD CHAIRMAN OF GERARD KLAUER MATTISON & CO WHO FOLLOWS MEDIA COMPANIES THE INVOLVEMENT OF MR ALLEN WHO PLAYED ROLES IN JAPANESE ACQUISITIONS OF TWO MAJOR HOLLYWOOD STUDIOS COLUMBIA PICTURES AND UNIVERSAL STUDIOS ADDS FUEL TO SPECULATION THAT SEAGRAM'S STAKE IN TIME WARNER COULD LEAD TO ASSET SALES OR OTHER STRATEGIC CHANGES AT THE MEDIA GIANT WHICH HAS INTERESTS IN A MOVIE STUDIO RECORDS CABLE TV AND PUBLISHING MR ALLEN 53 YEARS OLD HAS CLOSE LONGTIME RELATIONSHIPS WITH SUCH HOLLYWOOD MOGULS AS PRODUCER RAY STARK AND SUPERAGENT MICHAEL OVITZ MR OVITZ FOR EXAMPLE REFERRED MR BRONFMAN TO ALLEN & CO TO THE CONSTERNATION OF OTHER WALL STREET FIRMS MR ALLEN AND MR OVITZ ARE CLOSE FRIENDS WHO CHAT DAILY AND SPEND TIME TOGETHER AT PLACES LIKE MR ALLEN'S RANCH IN WYOMING THE RELATIONSHIPS WORK BOTH WAYS MR OVITZ BROUGHT MR ALLEN IN AS A FINANCIAL ADVISER TO MATSUSHITA ELECTRIC INDUSTRIAL CO ON ITS 74 BILLION ACQUISITION OF MCA INC WHICH OWNS UNIVERSAL AND MR ALLEN A DIRECTOR OF COCACOLA CO HELPED TO INTRODUCE MR OVITZ TO COKE MANAGEMENT AND SUPPORTED COKE'S DECISION TO HIRE MR OVITZ' CREATIVE ARTISTS AGENCY TO CRAFT A SERIES OF COKE ADVERTISEMENTS MR ALLEN AND MR OVITZ DECLINED TO COMMENT FOR THIS ARTICLE COCACOLA BLOSSOMED INTO ONE OF MR ALLEN'S MOST REWARDING RELATIONSHIPS AFTER IT ACQUIRED COLUMBIA PICTURES INDUSTRIES INC IN 1982 ALLEN & CO WHICH PAID 24 MILLION FOR A 67 STAKE IN COLUMBIA WITH THE STUDIO NEAR BANKRUPTCY IN 1973 REAPED A 40 MILLION PROFIT WHEN COKE BOUGHT THE STUDIO FOR CASH AND STOCK ALLEN & CO KEPT A BIG STAKE IN THE SOFTDRINK COMPANY NOW VALUED AT ABOUT 195 MILLION AND MR ALLEN JOINED THE BOARD AND BECAME A CLOSE ALLY OF COKE CHAIRMAN ROBERTO GOIZUETA FROM 1982 TO 1989 ACCORDING TO SECURITIES DATA CO ALLEN & CO MANAGED OR COMANAGED SIX STOCK AND BOND OFFERINGS OF COKE UNITS OR AFFILIATES TOTALING 249 BILLION AND ADVISED ON NINE COKERELATED SALES OR ACQUISITIONS CULMINATING IN COKE'S 479 BILLION SALE OF COLUMBIA TO SONY CORP MANY OF THOSE DEALS INVOLVED COLUMBIA BUT ONE OF THE STOCK SALES A 118 BILLION INITIAL PUBLIC OFFERING IN 1986 OF COCACOLA ENTERPRISES INC A BOTTLING COMPANY WAS 18 TIMES THE SIZE OF THE BIGGEST STOCK OFFERING ALLEN HAD MANAGED UNTIL THEN THE FIRM WITH 150 EMPLOYEES HAS A STOCK SALES FORCE OF ONLY THREE PEOPLE THE RELATIONSHIP BETWEEN MR ALLEN AND MR GOIZUETA HAS WORKED BOTH WAYS TOO IN 1989 WITH MR ALLEN SERVING AS CHAIRMAN OF COKE'S COMPENSATION COMMITTEE COKE ADOPTED A CONTROVERSIAL PLAN UNDER WHICH MR GOIZUETA WAS GRANTED ONE MILLION COKE SHARES IN 1991 ON CONDITION THAT HE NOT RETIRE BEFORE 1996 THE STOCK WAS VALUED AT 81 MILLION WHEN THE AWARD WAS DISCLOSED LAST YEAR EMANUEL GOLDMAN WHO FOLLOWS COKE AT PAINEWEBBER INC CALLED IT BACKSCRATCHING AN INDIVIDUAL CLOSE TO ALLEN & CO RESPONDS THAT IT IS NONSENSE TO PERSONALIZE THE STOCK GRANT BY TYING IT TO THE ALLENGOIZUETA RELATIONSHIP THE GOAL OF COKE'S BOARD THE SAME PERSON SAID WAS TO RETAIN TOP MEMBERS OF A MANAGEMENT TEAM THAT HAS PRODUCED A TENFOLD GAIN IN THE PRICE OF COKE STOCK SINCE 1982 COKE SAYS SHAREHOLDERS OVERWHELMINGLY APPROVED THE PAY PLAN AND THAT ALLEN IS ONE OF 15 UNDERWRITERS COKE USES TO SELL STOCKS AND BONDS THE ALLEN FIRM'S BUSINESS IS AN INCONGRUOUS MIX OF FLASHY HOLLYWOOD MEGADEALS AND OWNERSHIP STAKES IN OVER 150 COMPANIES MANY OF THEM TINY STARTUPS IN SUCH FIELDS AS HIGHTECH BIOTECHNOLOGY AND WASTE MANAGEMENT AS WELL AS ENTERTAINMENT ALLEN & CO HAS WORKED WITH COMPANIES LED BY DIRECTORS RON HOWARD AND ROB REINER AND IN 1987 MANAGED THE INITIAL PUBLIC OFFERING OF DICK CLARK PRODUCTIONS INC ALLEN & CO ALSO HAS AN ARBITRAGE FUND THAT INVESTS IN CORPORATE TAKEOVERS AND ANOTHER INVESTING POOL MR ALLEN IS QUICK TO INVITE HIS GLAMOROUS FRIENDS TO INVEST IN HIS VENTURECAPITAL DEALS FOR EXAMPLE EXCALIBUR TECHNOLOGIES CORP WHICH ALLEN CONTROLS WITH A 40 STAKE BOASTS SUCH SHAREHOLDERS AS MR OVITZ TV NEWS ANCHOR TOM BROKAW AND WASHINGTON POWER BROKER ROBERT STRAUSS DONALD KEOGH BOUGHT STOCK IN EXCALIBUR WHILE SERVING AS COCACOLA'S PRESIDENT IN 1991 A YEAR LATER COKE SIGNED A CONTRACT TO USE EXCALIBER'S DOCUMENT IMAGING AND RETRIEVAL TECHNOLOGY IN COKE'S INFORMATIONMANAGEMENT SYSTEM MR KEOGH RECENTLY JOINED ALLEN & CO AS CHAIRMAN COKE SAYS ITS INFORMATION SYSTEMS MANAGERS DIDN'T KNOW OF THE ALLEN OR KEOGH CONNECTIONS WHEN THEY CHOSE EXCALIBUR MR KEOGH SAYS HE DIDN'T PARTICIPATE IN OR EVEN KNOW OF THE DECISION BECAUSE THESE MANAGERS DIDN'T REPORT TO HIM MR ALLEN'S UNCLE CHARLES AND FATHER HERBERT WHO BUILT THE FAMILY INVESTING BUSINESS BEFORE HERBERT JR BECAME PRESIDENT OF ALLEN & CO IN 1966 WON A REPUTATION FOR SMARTS BY BACKING SYNTEX CORP IN THE 1950S THE FAMILY SHARES A NET WORTH OF MORE THAN 1 BILLION ACCORDING TO FORBES MAGAZINE ALLEN & CO WAS AN EARLY BACKER OF MCI COMMUNICATIONS CORP AND TOYS R US INC ONE SENIOR PARTNER STAN SHUMAN IS A DIRECTOR OF RUPERT MURDOCH'S NEWS CORP WHICH ACCOUNTS FOR MANY OF ALLEN'S BIGGEST UNDERWRITINGS NOT EVERYTHING ALLEN & CO TOUCHES TURNS TO GOLD THE OFFERING OF COCACOLA ENTERPRISES WAS AN OVERPRICED FLOP THE PRICE HAD TO BE LOWERED TWICE BEFORE THE OFFERING AND THE STOCK STILL TRADES BELOW THE OFFERING PRICE SIX YEARS LATER FOUR OF 13 ALLENMANAGED IPOS SOLD SINCE 1986 WERE TRADING ABOVE THEIR OFFERING PRICE THIS PAST WEEK ACCORDING TO SECURITIES DATA IMAGINE FILMS ENTERTAINMENT INC MR HOWARD'S FORMER COMPANY DISAPPOINTED INVESTORS AFTER AN ALLENLED OFFERING WHEN A STRING OF HIT MOVIES FAILED TO PRODUCE BIG PROFITS FOR THE COMPANY AN INDIVIDUAL CLOSE TO ALLEN & CO POINTS OUT THAT COCACOLA ENTERPRISES STOCK TRADED AS HIGH AS 29 ABOVE THE OFFERING PRICE IN 1987 BEFORE THE INDUSTRY WAS HIT BY PRICE WARS THE SAME PERSON ADDS THAT MOST ALLEN CLIENTS SOLD THEIR IMAGINE STOCK AT A PROFIT SINCE THE SALE OF COLUMBIA ALLEN & CO HAS GONE BACK INTO THE MOVIE BUSINESS BY RELAUNCHING TWO FORMER COLUMBIA EXECUTIVES VICTOR KAUFMAN AND LEWIS KORMAN IN A STARTUP MOVIE STUDIO CALLED SAVOY PICTURES ENTERTAINMENT INC SAVOY SHOWS MR ALLEN'S ABILITY TO RAISE A PILE OF MONEY FROM BIG HITTERS STARTING WITH 50 MILLION IN EQUITY FROM THE PRITZKER FAMILY REALESTATE MOGUL MELVYN KLEIN AND LONGTIME ALLEN ASSOCIATE DANIEL LUFKIN SAVOY HAS ALREADY RAISED 225 MILLION AND PLANS TO SPEND ABOUT 300 MILLION ON 12 TO 15 MOVIES ANNUALLY BUT MR ALLEN ALSO GAVE THE PRITZKER GROUP AN ABOVEMARKET INTEREST RATE OF 15 ON AN ADDITIONAL 25 MILLION NOTE MATURING IN 1997 ALTHOUGH MR ALLEN SHUNS MOST NEW YORK SOCIAL EVENTS HE LIVES A RAREFIED LIFESTYLE JETTING OFF TO ONCEAYEAR SAFARIS IN AFRICA OR VISITING VARIOUS HOMES FROM SOUTHHAMPTON ON NEW YORK'S LONG ISLAND TO SUN VALLEY IDAHO EVERY YEAR HE HOSTS AN INVESTMENT CONFERENCE IN SUN VALLEY WHERE HOLLYWOOD MOGULS MINGLE WITH A FEW DOZEN MONEY MANAGERS THERE EXECUTIVES FROM CORPORATIONS LIKE COLGATEPALMOLIVE CO AND HJ HEINZ CO ALTERNATE WITH TINY ALLENBACKED COMPANIES IN TELLING THEIR STORIES THEIR CONFERENCE IS THE BEST ONE I GO TO ALL YEAR SAYS GORDON CRAWFORD A MONEY MANAGER WHO SPECIALIZES IN MEDIA STOCKS AT CAPITAL GROUP INC IN LOS ANGELES REELING OFF A LIST OF STUDIO BOSSES AND POWER BROKERS WHO ATTEND HE SAY IT'S A PRETTY AMAZING GROUP OF CHARACTERS 9306090103 930609 BUSINESS BRIEF RR DONNELLEY & SONS CO FIRM BUYS PRINTING PLANTS OF SPECIALTY MAGAZINE GROUP RR DONNELLEY & SONS CO ANNOUNCED THE PURCHASE OF ASSETS OF RINGIER AMERICA INC'S SPECIAL INTEREST MAGAZINE GROUP THE GROUP WITH 900 EMPLOYEES AND ANNUAL SALES OF ABOUT 95 MILLION PRINTS MEDICAL AND TRADE ASSOCIATION PUBLICATIONS CITY AND REGIONAL MAGAZINES AND OTHER ITEMS IN THE TRANSACTION DONNELLEY ACQUIRES RINGIER PRINTING PLANTS IN PONTIAC ILL AND SENATOBIA MISS CHICAGOBASED DONNELLEY ACQUIRED PRINTING AND OTHER FACILITIES THROUGHOUT EUROPE AND ELSEWHERE IN THE PAST YEAR AND THIS WEEK ANNOUNCED THE PURCHASE OF EUROPEAN LANGUAGE TRANSLATIONS LTD DUBLIN RINGIER A UNIT OF CLOSELY HELD SWISS PUBLISHER RINGIER AG WILL RETAIN ABOUT 80 OF ITS US OPERATIONS BASED IN ITASCA ILL THE US BRANCH WILL CONTINUE PRINTING NATIONAL GEOGRAPHIC ELLE EBONY AND OTHER MAGAZINES AND CATALOGS FOR SPIEGEL INC MONTGOMERY WARD & CO INC AND OTHER COMPANIES DONNELLEY WITH ABOUT 32000 EMPLOYEES HAS MORE THAN 140 FACILITY SITES INCLUDING A NEWLY OPENED OPERATION IN CUMBERNAULD SCOTLAND 9306090102 930609 EII HOLDINGS REORGANIZATION NEW YORK EII HOLDINGS INC SAID A FEDERAL COURT TURNED DOWN FINANCIER CARL ICAHN'S APPEAL TO STAY EII'S REORGANIZATION PLAN AND THE COMPANY HAS RENAMED ITSELF ASTRUM INTERNATIONAL CORP THE COURT'S DECISION FOLLOWS A RECENT BANKRUPTCY COURT RULING IN FAVOR OF THE REORGANIZATION PLAN THAT WILL GIVE SENIOR CREDITORS 100 CENTS ON THE DOLLAR AND JUNIOR CREDITORS A COMBINATION OF DEBT AND STOCK VALUED AT ABOUT 74 CENTS ON THE DOLLAR 9306090101 930609 JM SMUCKER PLANS ACQUISITION ORRVILLE OHIO JM SMUCKER CO SAID IT SIGNED AN AGREEMENT TO ACQUIRE THE JAM PRESERVE AND PIEFILLING BUSINESSES OF CULINAR INC A CLOSELY HELD FOOD CONCERN BASED IN MONTREAL TERMS OF THE AGREEMENT WEREN'T DISCLOSED SMUCKER SAID THE BUSINESSES TO BE ACQUIRED HAD SALES LAST YEAR OF ABOUT 27 MILLION THE COMPANY SAID COMPLETION OF THE TRANSACTION IS SUBJECT TO DUEDILIGENCE REVIEWS AND THE RECEIPT OF ANY NECESSARY REGULATORY CLEARANCES IT SAID IT EXPECTS THE CLOSING TO OCCUR BY ABOUT MIDJULY 9306090100 930609 WHO'S NEWS SPRINT CORP'S FRAZEE RESIGNS PRESIDENT'S POST BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL ONLY THREE MONTHS AFTER COMPLETING A CONTENTIOUS MERGER BETWEEN CENTEL CORP AND SPRINT CORP JOHN P FRAZEE JR RESIGNED AS SPRINT'S PRESIDENT MR FRAZEE'S RESIGNATION TOOK SOME SPRINT INSIDERS AND INDUSTRY WATCHERS BY SURPRISE THE FORMER CENTEL CHAIRMAN AND CHIEF EXECUTIVE OFFICER WAS THE MERGER'S RAMROD WAGING AN ARDUOUS OFTEN BITTER FIGHT WITH LARGE CENTEL SHAREHOLDERS OPPOSED TO THE MERGER WITH SPRINT THE 285 BILLION DEAL FINALLY CLOSED IN MARCH BUT WILLIAM T ESREY SPRINT'S CHAIRMAN AND CHIEF EXECUTIVE BECAME CEO OF THE COMBINED COMPANY I'D NEVER DENY HAVING BEEN A CEO THAT IT'S HARD NOT TO BE MR FRAZEE SAID YESTERDAY IT'S UNFORTUNATE SAID SALVATORE MUOIO AN ANALYST AT GABELLI & CO A NEW YORK INVESTMENT FIRM THAT ONCE HELD MORE THAN 5 OF CENTEL AND OPPOSED THE MERGER HE CALLED MR FRAZEE A REAL POSITIVE ELEMENT AT SPRINT MR FRAZEE 49 YEARS OLD SAID HE AND HIS WIFE CASSIE TALKED AND WALKED AROUND THEIR TALLAHASSEE FLA CATTLE RANCH ON SUNDAY AND DECIDED IT WAS TIME FOR HIM TO MOVE ON I FULLY PLANNED ON HELPING PUT THE TWO COMPANIES TOGETHER AND I DID THAT HE SAID ADDING I WANT TO SPEND MORE TIME WITH MY FAMILY I'M GOING TO BE A GRANDFATHER IN JULY ASKED WHETHER THERE WASN'T A PLAN TO LEAVE ONCE THE MERGER WAS COMPLETED MR FRAZEE SAID THAT HAD THERE BEEN I NEVER WOULD HAVE GIVEN UP MY PARACHUTE AND I NEVER WOULD HAVE MOVED MY FAMILY TO LIVE NEAR SPRINT'S HEADQUARTERS IN THE KANSAS CITY MO AREA UNDER THE MERGER MR FRAZEE RECEIVED 3 MILLION IN CASH AND BECAME PRESIDENT AND CHIEF OPERATING OFFICER OF SPRINT AT A SALARY OF 415000 PLUS 375000 ANNUAL BONUS HE AGREED TO CANCEL HIS EMPLOYMENT CONTRACT AT CENTEL WHICH WOULD HAVE PAID HIM A 1 MILLION ANNUAL SALARY HE ALSO GAVE UP A TERMINATION AGREEMENT OR GOLDEN PARACHUTE THAT WOULD HAVE PAID HIM 53 MILLION IF HE LEFT CENTEL IN THE EVENT OF A MERGER MORE LIKELY MR FRAZEE DECIDED TO LEAVE WHEN HE FOUND THAT THE DEAL HE FOUGHT SO HARD TO COMPLETE ULTIMATELY LEFT HIM LITTLE ROOM FOR ADVANCEMENT AND WHILE MR ESREY RESTRUCTURED THE COMPANY SO THAT ALL LOCAL PHONE OPERATIONS INCLUDING CELLULAR SERVICE REPORTED TO MR FRAZEE HE POINTEDLY KEPT SUPERVISION OF SPRINT'S LONGDISTANCE BUSINESS FOR HIMSELF AND THE UNIT'S PRESIDENT RONALD T LEMAY MR ESREY ISSUED A STATEMENT SAYING HE'D MISS MR FRAZEE'S COUNSEL AND FRIENDSHIP GOING FORWARD MR FRAZEE SAID HE HAS NO IMMEDIATE PLANS I DEFINITELY WANT TO WORK AGAIN HE SAID WE'LL SEE WHAT OPPORTUNITIES DEVELOP ROBERT B MORRIS III TELECOMMUNICATIONS ANALYST AT GOLDMAN SACHS & CO SAID MR FRAZEE'S FUTURE MAY INVOLVE A HIGHLEVEL MANAGEMENT ROLE IN THE CONVERGING PHONE AND CABLE TELEVISION INDUSTRIES MR FRAZEE SPEARHEADED CENTEL'S MOVEMENT INTO CABLE TV YEARS AGO BEFORE SELLING THOSE OPERATIONS AT A BIG PROFIT 9306090099 930609 INTERNATIONAL ISRAEL MOVES TO AUTOMATE ITS AGRICULTURE USE OF ROBOTS GROWS AS PALESTINIAN PROBLEM WORSENS BY AMY DOCKSER MARCUS STAFF REPORTER OF THE WALL STREET JOURNAL BEIT DAGAN ISRAEL SEARCHING FOR WAYS TO REPLACE PALESTINIAN FARM WORKERS ISRAELI FARMERS HAVE TURNED TO DEMOBILIZED SOLDIERS NEW IMMIGRANTS AND THE UNEMPLOYED NOW THEY ARE ABOUT TO TRY SOMETHING NEW ROBOTS AND OTHER MECHANICAL LABORSAVING DEVICES UNLIKE MANY JEWISH FARMERS YITZHAK LICHTER WASN'T CAUGHT SHORTHANDED WHEN THE GOVERNMENT DECIDED RECENTLY TO BAR WEST BANK AND THE GAZA STRIP PALESTINIANS FROM ENTERING ISRAEL TO WORK HIS KIBBUTZ DECIDED YEARS AGO NOT TO HIRE PALESTINIAN WORKERS AND INSTEAD TO USE MACHINES DEVELOPED AT THE INSTITUTE OF AGRICULTURAL ENGINEERING PART OF THE GOVERNMENTSPONSORED VOLCANI RESEARCH CENTER IN BEIT DAGAN AT THE KIBBUTZ PESTICIDE SPRAYING IS DONE BY A MACHINE THAT GUIDES ITSELF ON TRACKS LAID OUT BETWEEN THE ROWS OF PLANTS WE TURN THE MACHINE ON AND THEN GO TO EAT LUNCH SAYS MR LICHTER IN ADDITION TOMATO PICKERS NO LONGER CLIMB LADDERS TO REACH THE TALLGROWING TOMATOES THEY DO THE PICKING FROM ELECTRIC CARTS THAT RAISE AND LOWER THE FARM WORKERS AT THE PRESS OF A BUTTON IT'S POSSIBLE TO GET BY WITHOUT THE ARABS SAYS MR LICHTER BUT ONLY IF YOU USE TECHNOLOGY THE ISRAELI GOVERNMENT CLEARLY INTERESTED IN DOING AWAY WITH THE NEED FOR CHEAP FARM LABOR HAS APPOINTED A COMMITTEE TO STUDY THE AUTOMATION OF AGRICULTURE AND COME UP WITH FINANCIAL INDUCEMENTS TO ENCOURAGE FARMERS TO MECHANIZE MINISTER OF AGRICULTURE YAAKOV TZUR SAYS HE WON'T PERMIT MORE THAN 12000 PALESTINIAN FARM LABORERS TO RETURN AFTER THE CLOSURE OF THE WEST BANK AND GAZA IS LIFTED AND HE REJECTED REQUESTS BY FARMERS TO INCREASE THE NUMBER OF THAI LABORERS PERMITTED TO WORK IN ISRAEL FARMERS ARE STARTING TO RECONSIDER HOW THEY OPERATE WE HAVE TO THINK BEYOND THIS CLOSURE AND DOWN THE ROAD TO PALESTINIAN AUTONOMY WHEN WE'LL BE COMPETING WITH PALESTINIAN FARMERS SAYS YESHAY FOLMAN CHIEF SCIENTIST AT THE MINISTRY OF AGRICULTURE AND HEAD OF THE NEW COMMITTEE ADVANCED TECHNOLOGY THAT ENABLES US TO DEVELOP SOPHISTICATED HIGHQUALITY CROPS MAY BE THE ONLY WAY FOR US TO COMPETE WITH THE PALESTINIANS WHO WILL STILL HAVE EASY ACCESS TO CHEAP LABOR ISHAIA SEGAL DIRECTOR OF THE INSTITUTE OF AGRICULTURAL ENGINEERING ESTIMATES THAT ENDING ISRAEL'S DEPENDENCE ON CHEAP LABOR THROUGH THE WIDESPREAD INTRODUCTION OF MECHANICAL AIDS AND MACHINES WILL TAKE ABOUT 5 MILLION OVER FIVE YEARS AT THE EN HABESOR FARM MENACHEM COHEN IS CONVINCED THAT AUTOMATION CAN HELP ATTRACT JEWISH WORKERS WHO HAVE TRADITIONALLY SHUNNED THE DIFFICULT WORK AND MENIAL TASKS ASSOCIATED WITH THE INDUSTRY HIS TOMATO GREENHOUSE FILLED WITH LABORSAVING DEVICES AND MACHINES REQUIRES FAR FEWER WORKERS STANDING ON AN ELECTRIC CART DEVELOPED BY THE INSTITUTE HE DEMONSTRATES HOW THE MACHINE WITH THE AID OF TWO SENSORS AUTOMATICALLY STEERS ITSELF BETWEEN THE PLANTS SAVING 30 IN LABOR COSTS THE GREENHOUSE DOORS OPEN ELECTRONICALLY AND A SUNSHADE AUTOMATICALLY SLIDES OVER THE ROOF OF THE GREENHOUSE WHENEVER OUTSIDE TEMPERATURES GET TOO HOT FARMS ARE ALWAYS GOING TO NEED WORKERS BUT THE IDEA IS TO REDUCE THE NUMBER MY WORKERS TAKE EIGHT DAYS TO PICK A TON OF TOMATOES WHILE WORKERS IN OTHER GREENHOUSES NEED 12 TO 15 DAYS SAYS MR COHEN FOR THE PALESTINIANS ISRAEL'S ATTEMPT TO END ITS RELIANCE ON MANUAL LABOR COULD BE ECONOMICALLY DEVASTATING APPROXIMATELY 4000 ISRAELI FAMILIES DEPEND ON FARMING FOR THEIR LIVELIHOOD AND MAYBE 1000 OF THEM HAVE BEEN SERIOUSLY AFFECTED ECONOMICALLY BY THE CLOSURE ON THE PALESTINIAN SIDE HOWEVER WE'RE TALKING ABOUT AT LEAST 20000 FAMILIES WHO ARE DIRECTLY AFFECTED AND THOUSANDS MORE INDIRECTLY SAYS EZRA SADAN AN EXPERT ON THE PALESTINIAN ECONOMY AND THE HEAD OF THE VOLCANI CENTER IF WE MECHANIZE WE NEED TO ACCEPT THE FACT THAT MANY PALESTINIANS WILL GO HUNGRY AGRICULTURE ACCOUNTED FOR ONLY 27 OF THE ISRAELI GROSS NATIONAL PRODUCT IN 1991 AND OCCUPIED ABOUT 4 OF THE ISRAELI LABOR FORCE BUT DURING PEAK SEASONS 30000 OUT OF ABOUT 110000 PALESTINIANS WHO HOLD JOBS IN ISRAEL WORK IN AGRICULTURE ACCORDING TO THE GOVERNMENT THE CLOSURE OF THE OCCUPIED TERRITORIES IS COSTING PALESTINIAN AGRICULTURAL WORKERS 25000 IN LOST WAGES EVERY DAY ESTIMATES THE PALESTINIAN AGRICULTURE RELIEF COMMITTEES OR PARC WHICH WORKS WITH FARMERS IN THE WEST BANK AND THE GAZA STRIP THE PALESTINIANS HAVE 26 YEARS OF EXPERIENCE AND TRAINING AND EVEN THE ISRAELIS CANNOT DENY THAT SAYS MOHAMMED BADER AL DEEN PARC DIRECTOR WE BELIEVE THAT REPLACING US WITH MACHINES WON'T BE POSSIBLE BUT OUT IN THE FIELD ONE RECENT AFTERNOON INSTITUTE DIRECTOR MR SEGAL IS CONVINCED HE HAS SEEN ISRAELI AGRICULTURE'S FUTURE AND IT IS ROBOTS STANDING IN A FIELD OF MELONS MR SEGAL WATCHES AS ENGINEERS FROM THE INSTITUTE TINKER WITH THE VIP ROMPER THE INSTITUTE'S ROBOTIC MELON PICKER DEVELOPED IN CONJUNCTION WITH PURDUE UNIVERSITY UNDER A 500000 RESEARCH GRANT AS THE ROBOT MAKES ITS WAY UP THE MELON PATCH TWO BLOWERS PUSH ASIDE THE LEAVES ENABLING A VIDEO CAMERA TO SPOT EACH FRUIT A COMPUTER INSTANTLY DIRECTS THE ROBOTIC ARM TO GENTLY GRASP EACH MELON AS AN AUTOMATIC SLICER CUTS THE STEM AND THEN TRANSFERS THE FRUIT TO A CONVEYER BELT ROBOTS HAVE BEEN IMPLEMENTED IN INDUSTRY MUCH MORE EASILY THAN IN AGRICULTURE OUT IN THE FIELD CONDITIONS ARE MORE DIFFICULT THAN THEY ARE IN A FACTORY WHERE EVERYTHING IS UNIFORM AND KNOWN IN ADVANCE SAYS YAEL EDAN WHO DIRECTS THE ROBOTIC PROJECT AT THE INSTITUTE SHE SAYS FEW FARM ROBOTS HAVE BEEN DEVELOPED IN THE WORLD AND NONE HAVE YET BEEN SOLD COMMERCIALLY TO AVOID PICKING UNRIPE FRUIT THE INSTITUTE'S ROBOT HAS BEEN PROGRAMMED TO ONLY PICK MELONS OF A CERTAIN SIZE A SMELL SENSOR WILL BE ATTACHED THIS SUMMER ALLOWING THE ROBOT TO DETERMINE RIPENESS BY DETECTING GAS EMITTED BY THE FRUIT WITHIN FIVE YEARS MS EDAN ANTICIPATES THAT THE ROMPER WHICH COST 70000 TO BUILD CAN BE SOLD COMMERCIALLY AND USED TO HARVEST LETTUCE CABBAGE AND OTHER CROPS IN ADDITION TO MELONS AFTER THE 1967 WAR THERE WAS EASY ACCESS TO CHEAP LABOR SO ISRAELI FARMERS RESISTED THE IDEA OF USING ROBOTS AND MACHINES SAYS MR SEGAL THEY THOUGHT THE SITUATION WOULD LAST FOREVER IT'S ONLY NOW THAT THEY ARE BEGINNING TO REALIZE THAT THE DAYS OF CHEAP LABOR ARE OVER 9306090098 930609 CABLE TV GIANTS TO SETTLE CHARGES OF MONOPOLY ACTS BY JOHNNIE L ROBERTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE GIANTS OF THE CABLE TELEVISION INDUSTRY WILL SIGN A CONSENT DECREE TODAY TO SETTLE A FEDERAL LAWSUIT BROUGHT BY 40 STATES ALLEGING MONOPOLISTIC PRACTICES THAT MADE THE PUBLIC CAPTIVE TO CABLE THROUGH CONTROL OF PROGRAMMING AND DISCRIMINATORY PRICING THE DEFENDANTS ALSO ARE SCHEDULED TO SETTLE A SEPARATE SUIT BROUGHT BY THE U S JUSTICE DEPARTMENT NEW YORK ATTORNEY GENERAL ROBERT ABRAMS HAS SCHEDULED A NEWS CONFERENCE FOR THIS MORNING TO ANNOUNCE THE SETTLEMENT BY SEVEN OF THE NATION'S LARGEST CABLE OPERATORS INCLUDING NO 1 TELECOMMUNICATIONS INC AND NO 2 TIME WARNER INC AMONG OTHER THINGS THE STATES ALLEGE THAT THE CABLE COMPANIES DENIED PROGRAMMING TO SUCH POTENTIAL RIVALS AS DIRECT BROADCAST SATELLITE COMPANIES OR ATTEMPTED TO SELL THEM PROGRAMS AT DISCRIMINATORY PRICES THEY ALSO ALLEGE THAT THE COMPANIES COULD EXERT CONTROL OVER PROGRAMS BECAUSE OF THEIR SIZE AND BECAUSE OF THEIR OWNERSHIP OF PROGRAMMING UNDER THE TERMS OF THE SETTLEMENT THE CABLE COMPANIES ARE EXPECTED TO AGREE TO MAKE PROGRAMMING AVAILABLE TO ALL DISTRIBUTORS AT COMPETITIVE PRICES AND THEY WILL BE PROHIBITED FROM RETALIATING AGAINST PROGRAMMERS WHO SELL TO CABLE RIVALS IN ADDITION CABLE COMPANIES WILL BE PROHIBITED FROM ENTERING INTO EXCLUSIVE CONTRACTS WITH PROGRAMMERS IN A PREPARED STATEMENT SCHEDULED FOR RELEASE TODAY MR ABRAMS SAID THE SETTLEMENT PULLS THE PLUG ON CABLE'S UNFAIR MONOPOLY AND ENDS ITS STRANGLEHOLD ON TELEVISION VIEWERS HE SAID THAT THE SETTLEMENT SHOULD LOWER COSTS TO CONSUMERS THE 40 STATES BEGAN BANDING TOGETHER IN THE LATE 1980S TO INVESTIGATE COMPLAINTS BY POTENTIAL RIVALS TO CABLE TV COMPANIES OF ANTICOMPETITIVE PRACTICES BY GIANT CABLE CONCERNS THAT OWN SYSTEMS NATIONWIDE AND THAT OFTEN OWNED ALL OR PART OF POPULAR CABLE TV CHANNELS INCLUDING HOME BOX OFFICE AND CINEMAX BOTH UNITS OF TIME WARNER AND SHOWTIME AND MTV OWNED BY VIACOM INC WHICH WAS ALSO PART OF THE SETTLEMENT THE STATES ARE TO FILE THE SUIT AGAINST THE SEVEN CABLE COMPANIES TODAY IN US DISTRICT COURT HERE ALONG WITH TCI TIME WARNER AND VIACOM THE SUIT NAMES COMCAST CORP COX COMMUNICATIONS INC CONTINENTAL CABLEVISION INC AND NEWHOUSE BROADCASTING CORP THE CABLE COMPANIES COULDN'T BE REACHED TO COMMENT LATE LAST NIGHT TYPICALLY WHEN DEFENDANTS SIGN CONSENT AGREEMENTS THEY NEITHER ADMIT NOR DENY THE ALLEGATIONS IN THE PAST THE CABLE INDUSTRY HAS VEHEMENTLY DENIED ENGAGING IN ANTICOMPETITIVE PRACTICES 9306090097 930609 TECHNOLOGY & MEDICINE GENENTECH CHIRON REPORT ADVANCES IN RESEARCH TOWARD AN AIDS VACCINE BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN VACCINE RESEARCHERS LABORING FOR A DECADE TO FIND A WAY TO IMMUNIZE PEOPLE AGAINST THE AIDS VIRUS PRESENTED NEW STEPS TOWARD THEIR GOAL AT THE NINTH INTERNATIONAL CONFERENCE ON AIDS AMONG THE MILESTONES TWO BIOTECHNOLOGY COMPANIES DEMONSTRATED THAT IMMUNIZING HEALTHY VOLUNTEERS AGAINST ONE STRAIN OF THE HUMAN IMMUNODEFICIENCY VIRUS CREATED ANTIBODIES IN THE BLOOD THAT REACT AGAINST DIFFERENT STRAINS TOO THIS FEAT WAS SHOWN BY BOTH GENENTECH INC OF SOUTH SAN FRANCISCO CALIF AND CHIRON CORP OF EMERYVILLE CALIF USING GENESPLICED COPIES OF THE VIRUS GENENTECH'S VACCINE AGAINST AN AIDS VIRUS STRAIN CALLED MN TESTED IN 57 VOLUNTEERS SPARKED ANTIBODIES THAT NEUTRALIZED THE VIRUS INTRODUCED INTO BLOOD SAMPLES TAKEN FROM PEOPLE WHO HAD BEEN INJECTED WITH THE VACCINE THE ANTIBODIES NEUTRALIZED NOT JUST MN BUT ALSO A SECOND STRAIN KNOWN AS SF2 ALSO THE VACCINE HAD NO ADVERSE EFFECTS SAID ROBERT BELSHE A RESEARCHER AT ST LOUIS UNIVERSITY SIMILARLY CHIRON'S VACCINE WHICH WAS MADE FROM A PIECE OF THE SF2 VIRUS STRAIN ELICITED ANTIBODIES THAT NEUTRALIZED NOT ONLY SF2 BUT ALSO A FRENCH STRAIN KNOWN AS LAI SAID JAMES KAHN A RESEARCHER AT THE UNIVERSITY OF CALIFORNIA AND SAN FRANCISCO GENERAL HOSPITAL FURTHER DR KAHN SAID THE ANTIBODIES FROM VOLUNTEERS MIGHT LATER BE INFUSED INTO INFECTED PEOPLE AS AN EXPERIMENT IN PASSIVE IMMUNIZATION A SORT OF IMMUNEBOOSTER FOR PEOPLE WHO ALREADY HAVE THE VIRUS BOTH THE GENENTECH AND CHIRON TEAMS CONCEDED THE TESTS FELL WELL SHORT OF THEIR HOPES GENENTECH'S VACCINE DIDN'T PRODUCE AS HIGH A LEVEL OF ANTIBODIES AS HOPED CHIRON'S VACCINE FOR ITS PART PROVOKED SEVERE REDNESS AND SWELLING AT THE INJECTION SITE IN SOME VOLUNTEERS' ARMS THE VACCINE REPORTS WHILE FAR FROM PERFECT ARE EXTREMELY IMPORTANT IN VIEW OF THE RESOLVE BY FEDERAL OFFICIALS TO START PLANNING NOW FOR TESTS IN THE US OF HOW WELL THE VACCINE ACTUALLY PREVENTS PEOPLE FROM GETTING INFECTED WORLD HEALTH OFFICIALS ALSO ARE TAKING INITIAL STEPS TOWARD SUCH MOVES IN AFRICA ASIA AND SOUTH AMERICA THE GENENTECH AND CHIRON VACCINES WHILE STILL IN DEVELOPMENT ARE EXPECTED TO BE PART OF SUCH A TRIAL BUT RESEARCHERS CAUTION THAT ANY VACCINE WON'T BE COMMERCIALLY AVAILABLE FOR YEARS AND EVEN THEN WILL BE FAR FROM PERFECT 9306090096 930609 SCIENCE WIND TOWER MAY YIELD CHEAP POWER BY JERRY E BISHOP STAFF REPORTER OF THE WALL STREET JOURNAL A WIND DISSIPATED THE FLOOD IN NOAH'S DAY ANOTHER WIND PARTED THE RED SEA FOR THE FLEEING ISRAELITES AND NOW A WIND MAY ONCE AGAIN PLAY A ROLE IN THE HISTORY OF ISRAEL ONLY THIS TIME IT WOULD BE A MANMADE WIND BLOWING VERTICALLY INSIDE A TOWER MORE THAN A HALFMILE HIGH THE WIND TOWER IS THE SERIOUS PROPOSAL OF A TEAM OF ISRAELI SCIENTISTS ENGINEERS AND ARCHITECTS WHO BELIEVE THEY HAVE FOUND A CHEAP METHOD OF GENERATING ELECTRICITY SITUATED IN THE DESERT NEAR THE SEA THE GENERATING STATION WOULD CONSIST OF A HOLLOW CYLINDER 3300 FEET HIGH TWICE THE HEIGHT OF NEW YORK'S WORLD TRADE CENTER AND 1500 FEET IN DIAMETER THE IDEA WORKS LIKE THIS SEA WATER IS PUMPED TO THE TOP OF THE TOWER AND SPRAYED INTO THE CENTER WHERE IT RAPIDLY EVAPORATES IN THE DRY DESERT HEAT AS THE AIR IS COOLED BY THE EVAPORATION IT GROWS DENSER AND HEAVIER AND BEGINS FALLING PLUNGING EVER FASTER DOWN THE TOWER INTERIOR BY THE TIME THE COLD AIR HITS THE TOWER BOTTOM IT'S TRAVELING AT 50 MILES AN HOUR IF THE WATER IS SPRAYED CONTINUOUSLY THE RESULT IS A POWERFUL DOWNDRAFT THAT CAN BE PIPED INTO TUNNELS TO DRIVE WIND TURBINE ELECTRIC GENERATORS BY ONE CALCULATION SUCH A WIND TOWER BUILT IN THE NEGEV DESERT AND DRAWING WATER FROM THE RED SEA COULD PRODUCE 40 BILLION TO 80 BILLION KILOWATTHOURS OF ELECTRIC ENERGY A YEAR THE ENERGY'S COST WOULD BE A MERE TWO CENTS A KILOWATTHOUR LESS THAN ONE FIFTH THE COST OF GENERATING A KILOWATTHOUR IN SAY CALIFORNIA AND IN SOME VERSIONS THE TOWER COULD ALSO DESALT SEA WATER PROVIDING CHEAP WATER FOR DESERT FARMING EVEN THE WIND TOWER'S PROGENITORS CONCEDE THAT THE IDEA MAY AT FIRST STRIKE PEOPLE AS SO MUCH HOT AIR I HAD GOOD FRIENDS WHO SAID DAN WHY DON'T YOU WRITE A BOOK TO GET IT OUT OF YOUR SYSTEM AND THEN GO DO SOMETHING SERIOUS' SAYS DAN ZASLAVSKY THE 62YEAROLD ISRAELI AGRICULTURAL ENGINEER WHO BEGAN WORKING ON THE WIND TOWER CONCEPT A DOZEN YEARS AGO BUT MOST WHO LISTEN TO DR ZASLAVSKY COME AWAY IMPRESSED WITH WHAT THE INVENTOR HAS DUBBED SNEH AEROELECTRIC POWER OR SNAP SNEH BEING THE HEBREW WORD FOR THE BIBLICAL BUSH THAT BURNED WITHOUT CONSUMING ITSELF THOSE IMPRESSED INCLUDE SCIENTISTS AND ENGINEERS AT THE TECHNIONISRAEL INSTITUTE OF TECHNOLOGY IN HAIFA OFTEN CRIBED AS THE ISRAELI EQUIVALENT OF THE MASSACHUSETTS INSTITUTE OF TECHNOLOGY DR ZASLAVSKY HEADS THE AGRICULTURAL ENGINEERING FACULTY THERE THE GREAT THING IS THAT NEITHER THE STRUCTURE NOR THE CONCEPT REQUIRES ANY NEW TECHNOLOGY SAYS THE PRESIDENT OF THE TECHNION ZEHEV TAZMOR BUILDING THE TOWER WOULD BE A PIECE OF CAKE AGREES WENDEL R WENDEL PRESIDENT OF STARNET INTERNATIONAL CORP AN ENGINEERINGCONSTRUCTION CONCERN IN LONGWOOD FLA SINCE THE TOWER UNLIKE A SKYSCRAPER IS A CYLINDRICAL SHELL WITHOUT ANY INFRASTRUCTURE IT COULD BE BUILT IN TWO YEARS OR LESS DAT A COST IN THE 300 MILLION RANGE HE SAYS IN THE NEXT FEW DAYS A PLAN LEADING TO A SNAP PLANT WILL BE SUBMITDTED TO THE ISRAELI MINISTRY OF COMMERCE AND INDUSTRY BDDDDY TECHNION RESEARCHERS THE PLAN CALLS FOR A 5 MILLION RESEARDCH AND DEVELOPMENT EFFORT CULMINATING IN A 25 MILLION PILOT VERSION OF THE TOWER DAN'S PROJECT IS HIGH ON THE BURNER FOR US SAYS LEWIS WESTON PRESIDENT OF THE AMERICAN TECHNION SOCIETY THE INSTITUTE'S FUNDRAISING ARM THIS IS THE KIND OF PROJECT WE LIKE BECAUSE IF IT WORKS IT'S NOT JUST AN ISRAELI PROJECT IT WOULD HELP THE SAUDIS THE KUWAITIS AND ANYONE ELSE WHO NEEDS ENERGY THE TECHNION IS SETTING UP A PROFITORIENTED SUBSIDIARY TO DEVELOP THE SNAP CONCEPT COMMERCIALLY ONE ISRAELORIENTED VENTURE CAPITAL FUND IN LOS ANGELES SECOND EQUITY CONCEPTS LTD IS ALREADY ASSEMBLING A GROUP OF US COMPANIES TO RAISE 275 MILLION A SNAP PLANT COULD ALSO BE PART OF THE MIDEAST PEACE TALKS DR ZASLAVSKY A FORMER WATER COMMISSIONER HEADED ISRAEL'S NEGOTIATING TEAM DEALING WITH WATER PROBLEMS AT THE VIENNA PEACE TALKS LAST YEAR AT THE TALKS HE SAYS JORDAN PROPOSED JOINING WITH ISRAEL TO DIG A CANAL FROM THE RED SEA TO THE DEAD SEA THE REDDEAD CANAL BY ITSELF ISN'T ALL THAT ATTRACTIVE ECONOMICALLY DR ZASLAVSKY SAYS BUT HE SAYS THE CANAL COULD BE DUG IN SECTIONS WITH A SNAP GENERATOR AT THE END OF EACH ONE THAT WOULD ALLOW THE CANAL TO MEET ALL THE ELECTRIC NEEDS OF BOTH COUNTRIES AN AMERICAN PHYSICIST PHILIP R CARLSON IS CREDITED WITH FIRST CONCEIVING THE DOWNDRAFT WIND GENERATOR ABOUT 1965 WHEN HE WAS AT LOCKHEED AIRCRAFT CORP HE STARTED WORKING ON THE IDEA OF GETTING ENERGY FROM THUNDERSTORMS THUNDERSTORMS CREATE UPDRAFTS THAT WOULD BE HARD TO HARNESS RECALLS DR CARLSON NOW 81 SO I STARTED THINKING ABOUT DOWNDRAFTS IN A CHIMNEY CREATED BY EVAPORATING WATER AT THE TOP OF THE CHIMNEY LOCKHEED PATENTED THE CONCEPT DURING THE ENERGY CRISIS IN THE MID1970S AND THE PATENT WAS TRANSFERRED TO AGBABIAN ASSOCIATES A PASADENA CALIF ENGINEERING FIRM IN 1977 ALTHOUGH THE PATENT EXPIRED LAST YEAR DR CARLSON AND AGBABIAN NOW OWNED BY THE JAPANESE RETAIN AN INTEREST IN ANY SNAP PROJECT DR ZASLAVSKY SAYS THE HEIGHT OF THE TOWER WHICH CONFOUNDS MOST PEOPLE IS THE LEAST OF THE PROBLEMS FACING THE SNAP PROJECT MICHAEL BORT THE TECHNION'S DEAN OF ARCHITECTURE DEVISED A TOWER MADE OF LATTICELIKE WALLS CROCHETED OF MASSPRODUCED ALUMINUM OR STEEL STRUTS 12 TO 15 FEET LONG AND COVERED WITH AN ALUMINUM FACADE ON A SCALE OF DIFFICULTY OF ONE TO 10 BUILDING THE TOWER WOULD BE ABOUT A FIVE SAYS MR WENDEL THE US ENGINEERBUILDER THE STRUTS AND FACADE PANELS COULD BE EXTRUDED ON SITE HE SAYS AND BUILDERS COULD USE THE ASIAN TECHNIQUE OF A SCAFFOLDING THAT RISES AS THE TOWER RISES AVOIDING MOVING GIANT CRANES INTO THE DESERT THERE IS THOUGH ONE PROBLEM STILL TO BE SOLVED THE EVAPORATION OF SEA WATER AT THE TOP OF THE TOWER AND A STEADY RAIN OF SALTY BRINE INSIDE THE TOWER WOULD LEAVE A LOT OF SALT TO DISPOSE OF 9306090095 930609 INTERNATIONAL TALK THAT VW'S LOPEZ MAY ANNOUNCE DREAM FACTORY RAISES RED FLAG AT GM BY WALL STREET JOURNAL REPORTERS TIMOTHY AEPPEL IN BONN AND JOSEPH B WHITE IN DETROIT VOLKSWAGEN AG'S EMBATTLED PURCHASING AND PRODUCTION CHIEF J IGNACIO LOPEZ DE ARRIORTUA CALLED A NEWS CONFERENCE FOR MONDAY AMID INTENSE SPECULATION THAT HE WILL UNVEIL HIS PET PROJECT AN INNOVATIVE CAR PLANT TO BE BUILT IN THE BASQUE REGION OF SPAIN MR LOPEZ'S NEWS BRIEFING IS SCHEDULED TO BE HELD IN HANNOVER GERMANY IN THE MORNING THEN AGAIN IN MADRID IN THE AFTERNOON A SPOKESMAN AT THE GERMAN CAR MAKER SAID RUMORS THAT MR LOPEZ WOULD USE THE OCCASION TO ANNOUNCE THE SITE OF A NEW FACTORY WERE PURE SPECULATION BUT THE SPOKESMAN DID CONFIRM THAT SEAT VW'S SPANISH SUBSIDIARY WAS LOOKING AT VARIOUS SITES IN SPAIN FOR A NEW FACTORY VW IS PLANNING TO BUILD THE BASQUE REGION IS ONE OF THE THINGS THAT IS POSSIBLE HE SAID AT LAST WEEK'S ANNUAL MEETING VW SAID IT PLANS TO BUILD A NEW ASSEMBLY PLANT THAT SOUNDS A LOT LIKE MR LOPEZ'S DREAM FACTORY VW CHAIRMAN FERDINAND PIECH TOLD SHAREHOLDERS HE WANTS TO USE THE PLANT TO PRODUCE A LOWPRICED VOLKSAUTO THAT COULD BE SOLD IN MARKETS ACROSS EUROPE AND THAT THIS CAN BE DONE ONLY IN AN ALLNEW FACTORY THAT USES THE LATEST PRODUCTION METHODS MR PIECH DIDN'T SAY WHERE THE FACTORY WOULD BE BUILT MR LOPEZ HAS SPARKED A NASTY FIGHT BETWEEN VW AND GENERAL MOTORS CORP WHICH ACCUSES MR LOPEZ OF CARTING OFF HORDES OF CONFIDENTIAL DOCUMENTS WHEN HE JUMPED FROM GM TO VW IN MARCH MR LOPEZ DENIES THE CHARGES WHICH ARE BEING INVESTIGATED BY A GERMAN PROSECUTOR VW SAYS MR LOPEZ WILL USE THE NEWS CONFERENCE TO ADDRESS THE ALLEGATIONS IF MR LOPEZ DOES ANNOUNCE THE NEW SUPEREFFICIENT FACTORY WHICH HE HAS DUBBED PLATEAU VI IT COULD OPEN UP YET ANOTHER BATTLEFRONT WITH HIS OLD EMPLOYER GM COULD ARGUE UNDER BOTH US AND GERMAN LAW THAT MR LOPEZ CAN'T USE THE PLATEAU VI FOR VW BECAUSE HE DEVELOPED IT WHILE ON GM'S PAYROLL GM IN FACT SUGGESTED YESTERDAY THAT IT WILL DO JUST THAT PLATEAU VI WAS FORMULATED WHILE MR LOPEZ WAS A GM EMPLOYEE THE COMPANY SAID IN RESPONSE TO QUERIES WE CERTAINLY WILL BE PAYING ATTENTION IF THE CONCEPT IS IMPLEMENTED ELSEWHERE WHEN MR LOPEZ WAS WITH GM HE WANTED TO BUILD THE PLATEAU VI PLANT IN THE BASQUE REGION FROM WHICH HE HAILS TO REALIZE HIS VISION FOR ULTRALEAN PRODUCTION INDEED HE HAS SAID THAT HIS FAILURE TO PUSH THROUGH SUCH A PROJECT AT GM IS A MAJOR REASON WHY HE TURNED SOUR ON HIS FORMER EMPLOYER GM EUROPE OFFICIALS REJECTED THE CONCEPT BECAUSE CAR SALES HAVE SLUMPED SHARPLY IN EUROPE THIS YEAR NEGATING THE NEED FOR EXTRA ASSEMBLY CAPACITY WHAT'S MORE GM EUROPE IS PUTTING ITS EXPANSION EMPHASIS ON EASTERN EUROPE WHERE IT SO FAR HAS MANAGED TO OUTFLANK VOLKSWAGEN IN THE RACE FOR MARKET LEADERSHIP GM IT'S UNDERSTOOD HAS PLANS FOR A LOWCOST FAMILYSIZE CAR FOR EASTERN EUROPE WHERE AFFORDABILITY IS THE MAJOR ISSUE IN THE EMERGING MARKET 9306090094 930609 MARKETING & MEDIA JUDGE ORDERS QUAKER OATS TO PAY 265 MILLION FINE CHICAGO A FEDERAL JUDGE HERE MARKED DOWN TO 265 MILLION THE DAMAGES QUAKER OATS CO MUST PAY TO A TINY VERMONT COMPANY FOR INFRINGING ON ITS TRADEMARKED THIRST AID SLOGAN BUT THE PENALTY THE CEREAL MAKER FACES APPEARS TO REMAIN THE LARGEST TRADEMARKINFRINGEMENT AWARD EVER GRANTED IN THE US ACCORDING TO LEAD PLAINTIFF ATTORNEY JAMES KLENK IN THE LATEST CHAPTER IN THE LONGRUNNING LITIGATION US DISTRICT JUDGE PRENTICE H MARSHALL ORDERED QUAKER TO PAY SANDS TAYLOR & WOOD ROYALTY PAYMENTS OF JUST OVER 103 MILLION DOUBLED TO 207 MILLION TO ENHANCE THE RULING'S VALUE AS A DETERRANT AS WELL AS INTEREST AND ATTORNEY'S FEES IN DECEMBER 1990 JUDGE MARSHALL HAD ORDERED QUAKER TO PAY 247 MILLION IN SUCH DAMAGES REPRESENTING 10 OF THE CALCULATED PROFIT THE COMPANY'S GATORADE DIVISION RANG UP OVER THE SIX YEARS DURING WHICH ITS CAMPAIGN RAN A QUAKER SPOKESMAN SAID THAT WHILE THE COMPANY IS STUDYING THE OPINION IT IS INCLINED AT THIS POINT TO APPEAL THE DECISION 9306090093 930609 WHO'S NEWS FIBREBOARD CORP FIBREBOARD CORP CONCORD CALIF GEORGE B JAMES 56 YEARS OLD CHIEF FINANCIAL OFFICER FOR LEVI STRAUSS & CO WAS NAMED A DIRECTOR INCREASING BOARD MEMBERSHIP TO SEVEN FIBREBOARD IS A WOOD AND INSULATION PRODUCTS CONCERN 9306090092 930609 INTERNATIONAL ITALY BANKS MAY GET STAKE IN FERRUZZI FINANZIARIA MILAN STATEOWNED ITALIAN BANKS MAY BE ABOUT TO TAKE EQUITY STAKES IN THE COUNTRY'S SECOND LARGEST PRIVATESECTOR GROUP FERRUZZI FINANZIARIA SPAHINTING AT STATE OWNERSHIP AS ITALY IS PLANNING TO SELL SOME OF ITS MASSIVE HOLDINGS THE STATE'S PRESENCE IN THE WINGS OF A FERRUZZI REORGANIZATION IS MORE BY DEFAULT THAN DESIGN I DON'T THINK THE STATE WANTS TO BECOME A FERRUZZI SHAREHOLDER SAID A MILANBASED ITALIAN ANALYST I DON'T THINK THE BANKS HAVE MUCH CHOICE SAID LORENZO COLUCCI ITALY ANALYST WITH SMITH NEWCOURT SECURITIES IN LONDON DEBTS AT FERRUZZI A SPRAWLING AGROINDUSTRIAL CONGLOMERATE MAY TOTAL NEARLY 20 TRILLION LIRE 135 BILLION ANALYSTS SAID AND FIVE CREDITOR BANKS MEDIOBANCA CREDITO ITALIANO SPA BANCA COMMERCIALE ITALIANA SPA BANCA DI ROMA SPA AND ISTITUTO BANCARIO SAN PAOLO DI TORINO SPA HAVE STEPPED IN TO RESTRUCTURE THE COMPANY IF THE BANKS DECIDED ON A DEBTFOREQUITY SWAP IT WOULD BE A FIRST IN ITALY 9306090091 930609 ENTERPRISE SBA COMMERCE SQUARE OFF ON HIGH TECH FINANCING CONTROL OF VENTURE CAPITAL PROGRAM COULD ALSO AFFECT WHO GETS FUNDING BY JEANNE SADDLER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SMALL BUSINESS ADMINISTRATION AND THE COMMERCE DEPARTMENT ARE HEADING FOR A SHOWDOWN OVER WHICH AGENCY WILL TAKE THE LEAD IN DEVELOPING NEW HIGH TECHNOLOGY COMPANIES OFFICIALS AT BOTH AGENCIES WANT TO HEAD UP A NEW GOVERNMENT VENTURECAPITAL PROGRAM FOR SMALL AND MIDSIZE HIGH TECHNOLOGY COMPANIES THAT CONGRESS MAY CREATE AS EARLY AS THIS MONTH THE OUTCOME OF THE FIGHT COULD HEAVILY DETERMINE WHAT SIZE AND TYPE OF COMPANIES GET FUNDING THROUGH THE NEW PROGRAM AND AT WHAT STAGE OF THEIR DEVELOPMENT THE FIGHT COULD ALSO SHED LIGHT ON HOW MUCH POWER THE SBA WILL HAVE IN THE CLINTON ERA THE SENATE SMALL BUSINESS COMMITTEE IS SCHEDULED TO HOLD HEARINGS ON THE ISSUE THIS MORNING THE COMMERCE DEPARTMENT WOULD BE THE WINNER UNDER THE PROPOSED LEGISLATION WHICH THE FULL SENATE IS SCHEDULED TO TAKE UP THIS MONTH AND WHICH THE HOUSE ALREADY HAS PASSED BUT THE SBA AND ITS BACKERS IN THE SENATE ARGUE THAT THE NEW EFFORT WOULD BE ALMOST AN EXACT DUPLICATION OF THE SBA'S SMALLBUSINESS INVESTMENT COMPANY PROGRAM AND ARE PRESSING TO WRAP IT INTO THE AGENCY'S EXISTING EFFORT LIKE THE SBA PROGRAM THE NEW PLAN CALLS FOR VENTURE CAPITAL FIRMS TO OBTAIN A GOVERNMENT LICENSE AND THEN ADD FEDERAL FUNDS TO THEIR OWN TO BOOST INVESTMENTS IN EMERGING COMPANIES THE ADMINISTRATION STILL HASN'T DECIDED WHICH AGENCY IT WANTS TO RUN THE NEW FINANCING PROGRAM A WHITE HOUSE OFFICIAL SAID THE ADMINISTRATION CLEARLY WANTS TO EXPAND THE COMMERCE DEPARTMENT'S ROLE IN ADVANCING HIGH TECHNOLOGY BUT SAID IT IS UNCERTAIN WHETHER THE DEPARTMENT WILL HAVE A ROLE IN FINANCING IT THE SBA KNOWS EXACTLY HOW IT STANDS ON THE ISSUE I FEEL VERY STRONGLY THE PROGRAM SHOULD BE HERE SAYS ERSKINE BOWLES THE NEW SBA ADMINISTRATOR WHO PREVIOUSLY HEADED HIS OWN INVESTMENT BANKING FIRM IN NORTH CAROLINA YOU DON'T HAVE TO BE A HIGH TECH GURU TO DECIDE WHICH VENTURE CAPITALISTS YOU SHOULD DEAL WITH I HAVE MORE EXPERIENCE DEALING WITH VENTURE CAPITAL THAN ANYONE IN THIS GOVERNMENT MR BOWLES IS PITTED AGAINST COMMERCE SECRETARY RONALD BROWN WHO HAS EMBRACED THE ADMINISTRATION'S EFFORT TO ADVANCE CRITICAL TECHNOLOGIES COMMERCE OFFICIALS SAY THE AGENCY IS STUDYING HOW THE PROGRAM WOULD FIT IN WITH ITS LEADERSHIP ROLE ON CIVILIAN TECHNOLOGY PROGRAMS MR BOWLES SAID HE HOPES TO MEET WITH MR BROWN ON THE ISSUE THE SBA'S INVESTMENTCOMPANY PROGRAM WAS STARTED 35 YEARS AGO AFTER THE RUSSIAN SPUTNIK ROCKET WAS LAUNCHED TO FUND HIGH TECHNOLOGY STARTUP BUSINESSES BUT BEGINNING IN 1986 MANY OF THE INVESTMENT COMPANIES THAT THE PROGRAM SPONSORED RAN INTO SERIOUS FINANCIAL TROUBLE THE SBA HAD TO LIQUIDATE THE ASSETS OF 191 OF THESE CONCERNS INVESTIGATORS BLAMED THE PROBLEMS ON THE RECESSION AND POOR SBA OVERSIGHT CURRENTLY ABOUT 300 OF THE INVESTMENT COMPANIES ARE OPERATING THE PROGRAM WAS OVERHAULED LAST YEAR TO MAKE IT FOCUS MORE ON EQUITY INVESTMENTS RATHER THAN LOANS BUT BARBARA PLANTHOLT PRESIDENT AND CHIEF EXECUTIVE OFFICER OF TRIAD INVESTORS CORP OF BALTIMORE MD SAYS SHE GAVE UP ON THE SBA PROGRAM LAST FALL SHE SAID HER VENTURECAPITAL FIRM HAD CONSIDERED JOINING THE SBA PROGRAM BUT DECIDED AGAINST IT BECAUSE UNDER THE RULES THE FEDERAL GOVERNMENT MUST BE THE FIRST INVESTOR TO GET ITS SHARE OF THE PROFIT FROM AN INVESTMENT SHE SAYS THAT RULE WOULD FORCE THE PRIVATE PARTNERS TO WAIT EVEN LONGER FOR A RETURN A PROSPECT THEY DIDN'T LIKE BUT MS PLANTHOLT SAID VERSIONS OF THE COMMERCE PROGRAM SHE'S SEEN ARE TOO COMPLICATED SEN JAY ROCKEFELLER ONE OF THE MAIN PROPONENTS OF PUTTING THE NEW INVESTMENT PROGRAM IN THE COMMERCE DEPARTMENT SAYS THE SBA'S PROGRAM DOESN'T ADDRESS THE DECLINE IN VENTURE CAPITAL FOR EARLYSTAGE INVESTMENTS IN CRITICAL TECHNOLOGIES ONLY 19 OF SBIC FUNDS GO TO ANYTHING WITHIN THE BROADEST DEFINITION OF TECHNOLOGY THE WEST VIRGINIA DEMOCRAT SAYS FURTHER THE SBA FOCUSES ONLY ON SMALL BUSINESSES BUT CRITICAL TECHNOLOGY ISN'T FOUND SOLELY IN SMALL COMPANIES MOST DISCUSSIONS OF THE COMMERCE PROGRAM HAVE FOCUSED ON SMALL AND MIDSIZE COMPANIES HOWEVER THE NEW PROGRAM WOULD PROVIDE EARLYSTAGE INVESTMENT MONEY OR SEED CAPITAL FOR COMPANIES IN INDUSTRIES SUCH AS ADVANCED ELECTRONICS NEW INDUSTRIAL MATERIALS AND BIOTECHNOLOGY SAYS AN AIDE TO THE SENATOR THE SENATE BILL PROVIDES 100 MILLION OVER A TWOYEAR PERIOD FOR THE EFFORT BEGINNING IN FISCAL YEAR 1995 THE SBIC PROGRAM PROVIDED ABOUT 396 MILLION IN FINANCING LAST YEAR INCLUDING ABOUT 70 MILLION FOR TECHNOLOGY COMPANIES VENTURE CAPITALISTS HAVE LINED UP ON BOTH SIDES OF THE EMOTIONAL DISPUTE PATRICIA CLOHERTY PRESIDENT OF PATRICOF & CO A NEW YORK VENTURECAPITAL FUND WHO WROTE THE REFORMS FOR THE SBA PROGRAM THAT CONGRESS LATER ADOPTED IS PARTICULARLY INCENSED SHE SAYS THE PROPOSED COMMERCE DEPARTMENT PROGRAM WOULD FAVOR LARGE BUSINESSES AND WOULD OFFER THEM FUNDING MORE CHEAPLY WITHOUT SAFEGUARDING THE GOVERNMENT'S MONEY IT GIVES MONEY AWAY WITH NO STRINGS ATTACHED THIS IS DESTRUCTIVE AND A SURE MONEYLOSER SAYS MS CLOHERTY WHO IS ALSO VICE PRESIDENTELECT OF THE NATIONAL VENTURE CAPITAL ASSOCIATION SHE BELIEVES TWO SEPARATE GOVERNMENTSPONSORED VENTURE PROGRAMS WOULD INVITE ABUSE WITH THE SENATE SCHEDULED TO VOTE SOON SEVERAL MEMBERS OF THE SMALL BUSINESS COMMITTEE ARE LOBBYING THEIR COLLEAGUES TO SIMPLY BROADEN THE MANDATE OF THE SBA'S EXISTING PROGRAM INSTEAD OF CREATING A NEW ONE COMMITTEE CHAIRMAN DALE BUMPERS D ARK AND SEN LARRY PRESSLER R SD SAY THE COMMERCE DEPARTMENT PROGRAM WOULD SERVE ONLY BIG COMPANIES THAT COULD GET BANK FINANCING I'M REALLY UPSET ABOUT THIS TO BUILD A WHOLE NEW PROGRAM IS SILLY IT'S AN EXAMPLE OF WHAT'S WRONG WITH GOVERNMENT SEN BUMPERS SAYS 9306090090 930609 MARKETING & MEDIA ADVERTISING NUVEEN HOPES TO WIN YOUR HEART WITH GENTLE ADS FROM REAL FOLKS BY KEVIN GOLDMAN IN ADVERTISING VERITE LOTS OF COMPANIES USE REAL CUSTOMERS AND EMPLOYEES TO PITCH THEIR PRODUCTS NOW A NEW CAMPAIGN GOES A STEP FURTHER USING REAL PEOPLE AS METAPHORS TO GENTLY SUGGEST THE ADVERTISER'S MESSAGE INDIRECTLY THE NEW AD CAMPAIGN FOR CHICAGOBASED INVESTMENT BANKING FIRM JOHN NUVEEN & CO WILL PREMIERE LATER THIS MONTH DURING TELEVISED COVERAGE OF THE WIMBLEDON TENNIS TOURNAMENT IT USES REAL PEOPLE SUCH AS THE FLYING CAVALLINIS A FIVEGENERATION CIRCUS HIGHWIRE ACT TO LINK NUVEEN'S FINANCIAL SERVICES WITH THE STRENGTH OF THE HUMAN BOND THE REAL PEOPLE FEATURED IN THE TELEVISION AND PRINT ADS AREN'T ENDORSING NUVEEN PER SE NOR ARE THEY EVEN CUSTOMERS ALTHOUGH THE COMPANY SAYS SOME HAVE SIGNED ON SINCE THE ADS WERE SHOT THE 185 MILLION AD CAMPAIGN FROM HAL RINEY & CO'S CHICAGO OFFICE TOOK THREE YEARS TO REFINE SAYS TIMOTHY R SCHWERTFEGER NUVEEN'S EXECUTIVE VICE PRESIDENT AND IT IS THE FIRST AGGRESSIVE EFFORT BY NUVEEN TO BRAND ITS NAME IN ADVERTISING THIS IS DOUBLY TRICKY ALL BRANDS ARE GENERALLY UNDER ATTACK FROM LESS WELLKNOWN COMPETITION FURTHERMORE THERE'S A DIZZYING ARRAY OF FINANCIAL SERVICES AVAILABLE TO INVESTORS IN ITS PITCH NUVEEN TUGS AT CONSUMERS' HEARTSTRINGS AS SUCH ITS ADS ARE FAR MORE INDIRECT THAN THOSE OF SAY PAINEWEBBER IN PAINEWEBBER'S ADS PRODUCED BY SAATCHI & SAATCHI AND SHOT BY TRENDY PHOTOGRAPHER ANNIE LEIBOVITZ YOUNG PROFESSIONALS ARE SEEN DISCUSSING THEIR FINANCES WITH AN UNSEEN LISTENER IN EACH CASE THEIR NEEDS ARE MET THE YUPPIES DECLARE BECAUSE THEIR PAINEWEBBER AGENT ASKED NUVEEN SOUGHT TO BE MORE PHILOSOPHICAL SAYS JONATHAN HARRIES SENIOR VICE PRESIDENT AT RINEY WE WOULD PRODUCE EXECUTIONS THAT SOLD THE PUBLIC ON THE BENEFIT OF TAXFREE NUVEEN BONDS BUT THAT ISN'T WHAT THE COMPANY WANTED ULTIMATELY RINEY WOUND UP PRODUCING A SLIGHTLY SURREAL ALTERNATIVE NOT UNLIKE A FEDERICO FELLINI FILM THE AD FEATURING THE FLYING CAVALLINIS THE OKLAHOMA CIRCUS FAMILY PLAYS OUT AGAINST A BACKGROUND OF STRING INSTRUMENTS THE EARNEST SCRIPTED VOICEOVER FROM GRANDFATHER CAVALLINI TALKS ABOUT TEACHING HIS GRANDDAUGHTER THE HIGHWIRE ACT IT TAKES MORE THAN A QUICK EYE AND STRONG ARMS TO BE A CAVALLINI THE REAL STRENGTH COMES FROM INSIDE THE HEART SOMEDAY SHE'LL TEACH THESE THINGS TO HER CHILDREN AND NO MATTER WHAT THEY CHOOSE IN LIFE IN THEIR HEARTS THEY TOO WILL FLY THE FILM SHOWS THE GRANDFATHER WALKING ABOUT THE CIRCUS GROUNDS WITH HIS GRANDDAUGHTER UNDER UMBRELLAS IN A MISTY RAIN THE VOICEOVER ACTOR EFREM ZIMBALIST JR SAYS THAT AT NUVEEN WE BELIEVE OUR STRONGEST BOND IS HUMAN METAPHORS ABOUND THE TRANSFER OF WISDOM THAT COMES WITH MATURITY OFFERS NUVEEN'S MR SCHWERTFEGER WE HOPE PEOPLE UNDERSTAND THAT THE DEDICATION THAT A GRANDFATHER SHOWS TO SEVERAL GENERATIONS OF CHILDREN AND GRANDCHILDREN IS THE LEVEL OF DEDICATION WE ASPIRE TO WHEN BRINGING SECURITY AND VALUE TO INVESTORS THE COMMERCIAL STARRING THE CAVALLINIS IS THE ONLY ONE OF THE THREE TELEVISION ADS TO FEATURE REAL PEOPLE THE OTHER TWO USE ACTORS IN ONE A GRANDSON TRAVELS A GREAT DISTANCE TO VISIT HIS GRANDMOTHER ON HER BIRTHDAY IN THE OTHER A GRANDFATHER PLAYS BASEBALL WITH HIS GRANDDAUGHTER ONE EXECUTIVE INVOLVED IN THE CAMPAIGN CONCEDES THAT RINEY AND NUVEEN WERE LOOKING FOR ACTUAL PEOPLE TO FIT INTO EACH EXECUTION BUT THERE WERE PRACTICAL LIMITATIONS TO THE TIME WE FELT WE COULD SPEND LOOKING THAT WASN'T THE CASE IN THE PRINT ADS WHICH ARE DUE TO BREAK LATER THIS MONTH IN THE NEW YORK TIMES MAGAZINE THE ATLANTIC HARPER'S THE NEW YORKER AND SCIENTIFIC AMERICAN PHOTOGRAPHER DENNIS MANARCHY TRAVELED TO SAVANNAH GA TO FIND NONACTORS FOR THE PRINT ADS WHICH LIKE THE TELEVISION SPOTS ARE FILMED IN A BROWNISH HUE THE TELEVISION COMMERCIALS WON'T APPEAR IN THE TRADITIONAL SHOWCASE FOR FINANCIAL INSTITUTIONS SUNDAY MORNING NEWS BROADCASTS LIKE FACE THE NATION ON CBS OR MEET THE PRESS ON GENERAL ELECTRIC'S NBC NETWORK INSTEAD THE SPOTS WILL BE SHOWN ON UPSCALE SPORTS EVENTS SUCH AS THE US OPEN TENNIS TOURNAMENT NATIONAL FOOTBALL LEAGUE GAMES AND THE BREEDER'S CUP OUR STRATEGY SAYS MR SCHWERTZFEGER IS TO TALK TO PEOPLE IN THE ENVIRONMENT WHERE THEY ARE FOCUSED ON ASPECTS OF THEIR LIVES THAT ARE MOST IMPORTANT TO THEM THAT IS WHY HE SAYS NUVEEN ADS WILL BE SHOWN ON THE ARTS & ENTERTAINMENT NETWORK AND NOT ANY OF THE CNN FINANCIALORIENTED PROGRAMS DOES NUVEEN RUN THE RISK OF BEING TOO SUBTLE THE COMPANY AND ITS AD AGENCY SAY NOT THIS IS A CAMPAIGN THAT WE AND NUVEEN ARE GOING TO INVEST IN OVER A LONG PERIOD OF TIME SAYS MR HARRIES OF RINEY THE ADS ARE INVITING TO WATCH MORE THAN ONCE THAT'S THE SECRET IT'S OFFICIAL MILLER BREWING CO AND AGENCY LEO BURNETT CO ARE BRINGING BACK THE TASTES GREATLESS FILLING THEME IN NATIONAL ADS FOR MILLER LITE THE MOVE DEEPSIXES THE DOOMED C'MON LET ME SHOW YOU WHERE IT'S AT EFFORT THAT HAD BEEN EVOLVING FOR TWO YEARS IN ONE SPOT PEOPLE WATCHING THE TUBE IN A BAR DISAGREE OVER WHETHER TO WATCH SUMO WRESTLING OR A HIGHDIVE COMPETITION THE BARTENDER BANGS THE SET WITH A BOTTLE OF MILLER LITE JARRING IT INTO BROADCASTING SUMO HIGH DIVE IN WHICH A HEFTY WRESTLER SCORES A 95 WITH A BELLY FLOP ANOTHER SPOT TAKES A SWIPE AT THE LEGAL PROFESSION WHEN HOT SHOT LAWYERS MEET CALFROPING IN BIG LAWYER ROUNDUP AS COWBOYS CHASE DOWN AND TIE UP ATTORNEYS EACH SPOT ENDS THE SAME WAY IF YOU CAN COMBINE GREAT TASTE WITH LESS FILLING YOU CAN COMBINE ANYTHING GREAT TASTE LESS FILLING CAN YOUR BEER DO THIS FOUR SPOTS IN THE NEW CAMPAIGN BREAK TONIGHT DURING THE NATIONAL BASKETBALL ASSOCIATION CHAMPIONSHIPS THE CAMPAIGN HAS BEEN IN TEST FOR A MONTH IN MILWAUKEE DENVER AND CORPUS CHRISTI TEXAS WE THINK IT'S SUPERIOR ADVERTISING AND WILL HAVE A LONG LIFE SAID PAUL BASQUIN A DIRECTOR AT MILLER WHICH SPENT AN ESTIMATED 90 MILLION ON MILLER LITE ADVERTISING WITH LEO BURNETT IN 1992 LEO BURNETT HAS HAD SEVERAL TEAMS WORKING ON NEW CREATIVE WORK FOR MILLER LITE SINCE THE FALL THE ONE THAT PRODUCED THIS CAMPAIGN CAME OFF THE PILLSBURY ACCOUNT DMB&B D'ARCY MASIUS BENTON & BOWLES NAMED CARL NICHOLS MANAGING DIRECTOR OF ITS CENTRAL AND EASTERN EUROPEAN OPERATIONS MR NICHOLS 37 YEARS OLD HAD BEEN DMB&B'S EUROPEAN ACCOUNT DIRECTOR ON THE PROCTER & GAMBLE BUSINESS THE AGENCY ALSO SAID IT FORMED AN AGREEMENT IN PRINCIPLE TO ACQUIRE AN EQUITY STAKE IN OFC INTERNATIONAL SRL AN AGENCY IN BUCHAREST ROMANIA FINALISTS COMEDY CENTRAL THE JOINT VENTURE CABLE NETWORK OF TIME WARNER AND VIACOM INC NARROWED ITS SEARCH FOR AN AD AGENCY TO FOUR FINALISTS THEY ARE KOREY KAY & PARTNERS NEW YORK KIRSHENBAUM & BOND NEW YORK INTERPUBLIC GROUP'S LOWE & PARTNERS NEW YORK AND THE GREY ENTERTAINMENT UNIT OF GREY ADVERTISING NEW YORK A DECISION IS EXPECTED BY THE END OF JULY BILLINGS ARE ESTIMATED AT 3 MILLION 9306090089 930609 DELICATE SITUATION MUTUAL FUND BOSS HAS BROKERAGEFIRM LINK THAT INTERESTS THE SEC MICHAEL PRICE BUYS BIG STAKES BUT SAYS HE'S CAREFUL NOT TO MISUSE INFORMATION INVESTING IN SUNBEAMOSTER BY RON SUSKIND STAFF REPORTER OF THE WALL STREET JOURNAL SHORT HILLS NJ SITTING IN THE MIDDLE OF A SECURITIES TRADING ROOM MICHAEL PRICE IS SURROUNDED BY DESKS RINGING PHONES BLINKING SCREENS AND TWO DOZEN ANALYSTS RESEARCHERS DEPUTIES AND ASSORTED ACOLYTES IT IS WHERE MR PRICE HAS MADE A BUNDLE FOR INVESTORS IN HIS MUTUAL SERIES MUTUAL FUNDS AMONG HIS BIGGEST WINNERS ARE DOWNANDOUT COMPANIES THAT HE TAKES A BIG STAKE IN AND HELPS RESCUE THAT APPROACH GIVES HIM UNUSUAL ACCESS TO CORPORATE EXECUTIVES INCLUDING THOSE AT SUNBEAMOSTER CO ZENITH LABORATORIES INC AND CONSTELLATION BANCORP IT IS ALSO WHERE HERZOG HEINE GEDULD INC CONDUCTS BROKERAGE BUSINESS IN FACT SOME MUTUAL SERIES ANALYSTS IN THE BUSTLING ROOM DOUBLE AS HERZOG HEINE BROKERS MR PRICE HIMSELF IS A HERZOG HEINE BROKER AND UNTIL MAY 31 ALSO WAS AN INVESTMENT ADVISER TO THE FIRM AMONG HERZOG HEINE'S RECENT BIG WINNERS SUNBEAMOSTER ZENITH LABORATORIES AND CONSTELLATION BANCORP IT'S A COZY RELATIONSHIP AND HIGHLY UNUSUAL FOR A MONEY MANAGER WITH MR PRICE'S CLOUT ON WALL STREET WHERE INFORMATION BREEDS SHREWD INVESTMENTS ELABORATE RULES OF PUBLIC DISCLOSURE ATTEMPT TO KEEP ALL INVESTORS BIG AND SMALL ON AN EQUAL FOOTING BUT MR PRICE WHO AT 41 IS CONSIDERED ONE OF THE COUNTRY'S SAVVIEST STOCK PLAYERS SHOWS THE DIFFICULTIES OF SUCH A CAMPAIGN HIS COMPLEX RELATIONSHIPS WITH CORPORATE CHIEFS WHOSE COMPANIES' STOCKS HE OFTEN BUYS WHILE OTHERS ARE YELLING SELL AND HIS CONTINUING LINKS TO HERZOG HEINE RAISE QUESTIONS OF CONFLICTS OF INTEREST MR PRICE CONCEDES HE IS SOMETIMES PRIVY TO INSIDE INFORMATION ON STOCKS HELD BY MUTUAL SERIES BUT HE SAYS HE AND HERZOG HEINE NEVER ACT ON IT THE TIES BETWEEN THE MUTUAL SERIES FUNDS AND HERZOG HEINE ARE NOT A PROBLEM HE INSISTS WE HAVE RELATIONSHIPS WITH COMPANIES AND WE HAVE TO MAKE SURE THEY DON'T TELL US ANY INSIDER STUFF OR AT LEAST THAT WE DON'T ACT ON IT MR PRICE SAYS WE'RE VERY VERY CAREFUL WE DON'T STEP OVER THE LINE BUT TO TAMAR FRANKEL A BOSTON UNIVERSITY EXPERT ON SECURITIES LAW THIS IS AN EXPLOSIVE SETUP WHAT YOU HAVE IS THE KIND OF INSIDER INFORMATION USUALLY RECEIVED ONLY BY INVESTMENT BANKS COMBINED WITH AN EASY OUTLET FOR TRADING ON IT MR FRANKEL ADDS AS ANY DIETER KNOWS YOU SHOULD STAY AWAY FROM SINFUL DESSERTS HERE'S A CASE WHERE THEY'VE PULLED A CHAIR RIGHT UP TO THE DESSERT CART MR PRICE'S UNUSUAL WEB OF RELATIONSHIPS STEMS PARTLY FROM HIS INVESTMENT STYLE SEARCHING FOR OUTOFFAVOR OR AILING COMPANIES WITH HIDDEN POTENTIAL HE HAS OFTEN INVESTED MUTUAL SERIES CAPITAL IN THE SECURITIES OF COMPANIES JUST BEFORE OR AFTER BANKRUPTCY FILINGS OR TO HELP AVERT SUCH A FILING THUS HE CAN INFLUENCE REORGANIZATIONS HELP SELECT NEW MANAGEMENTS AND CLOSELY ADVISE THESE TURNAROUND COMPANIES OCCASIONALLY A PRICE ASSOCIATE SITS ON THE BOARD OF COMPANIES IN WHICH THE FUNDS HOLD A MAJOR POSITION AS A RESULT MR PRICE SOMETIMES GETS INSIDE INFORMATION ON WHICH HE CAN'T LEGALLY TRADE YET HIS WHOLLY OWNED INVESTMENTADVISORY FIRM HEINE SECURITIES INC WHICH RUNS THE MUTUAL SERIES FUNDS AND HERZOG HEINE ITS OFFICEMATE ADMITTEDLY LACK THE ORGANIZATIONAL BARRIERS COMMONLY ERECTED AGAINST INSIDER TRADING YOU JUST DON'T SEE MAJOR INVESTMENT ADVISERS WHOSE EMPLOYEES DOUBLE UP AS BROKERS SAYS THOMAS HARMAN CHIEF COUNSEL OF THE SECURITIES AND EXCHANGE COMMISSION'S INVESTMENT ADVISORY DIVISION WHO EMPHASIZES THAT HE IS TALKING ABOUT THE INDUSTRY IN GENERAL AND NOT ABOUT THE SPECIFICS OF MR PRICE'S CASE IT OPENS YOU UP TO ALL SORTS OF CONFLICTS OF INTEREST AND POSSIBLE INSIDERTRADING PROBLEMS THAT ARE JUST UNMANAGEABLE THE RELATIONSHIP BETWEEN MR PRICE AND HERZOG HEINE AND IN PARTICULAR WHETHER HERZOG HEINE OR ITS CLIENTS HAVE BENEFITED FROM INSIDER INFORMATION AVAILABLE TO MR PRICE IS THE SUBJECT OF AN SEC INQUIRY PEOPLE AT THE COMMISSION SAY THE SEC WHICH DECLINES ADDITIONAL COMMENT BEGAN THE INQUIRY AFTER RECEIVING QUESTIONS FROM THE WALL STREET JOURNAL ABOUT HERZOG HEINE'S HEAVY TRADING IN 1991 IN SUNBEAMOSTER STOCK WARRANTS WHOSE VALUE HAS SOARED 7900 IN THE PAST TWO YEARS IN JUNE 1991 WHEN HERZOG HEINE BEGAN TRADING VIGOROUSLY AS THE OVERTHECOUNTER MARKET MAKER FOR THE WARRANTS ONLY A FEW PEOPLE INCLUDING MR PRICE WERE IN A POSITION TO KNOW THAT SUNBEAM HAD ALREADY DECIDED NOT TO GO PRIVATE THAT DECISION EFFECTIVELY REMOVED THE BIGGEST RISK IN OWNING THE WARRANTS WHICH ALLOW THE HOLDER TO BUY STOCK AT A CERTAIN PRICE THE ASSERTION THAT NONPUBLIC INFORMATION WAS PASSED ABOUT SUNBEAM IS RIDICULOUS SAYS MR PRICE WHO CONFIRMS THAT LAST MONTH HE RECEIVED AN SEC LETTER OF INQUIRY ABOUT TRADING IN THE WARRANTS WE THE MUTUAL SERIES FUNDS NEVER TRADED OUR SUNBEAM SECURITIES AND WE'VE TOLD THE SEC THAT AND WE'VE NEVER TALKED TO ANYONE ABOUT INSIDE INFORMATION FROM THE COMPANY JOHN HERZOG CHAIRMAN OF HERZOG HEINE SAYS ITS TRADING AS AN EARLY MARKET MAKER STANDING READY TO BUY AND SELL SECURITIES TO EVEN OUT PRICE FLUCTUATIONS IN SOME OF MR PRICE'S MOST SENSITIVE ISSUES IS A COINCIDENCE HE SAYS HIS FIRM IS COMPLETELY INDEPENDENT OF MUTUAL SERIES HERZOG HEINE DERIVES ABOUT 80 OF ITS REVENUE FROM TRADING STOCKS AND MAKES MARKETS IN MORE THAN 100 NEW SECURITIES A YEAR A HANDFUL OF WINNING STOCKS IS NOT GOING TO HAVE MUCH OVERALL EFFECT MR HERZOG SAYS THE TWO FIRMS SHARE A LONG SOMETIMES TROUBLED HISTORY MAX HEINE WHO DIED IN 1988 WAS A PARTOWNER OF HERZOG HEINE IN 1976 HE ALSO FOUNDED HEINE SECURITIES THE SUCCESSOR TO A SIMILAR MUTUALFUND FIRM WHERE HE HAD BEEN DEALING IN DISTRESSEDCOMPANY SECURITIES SINCE 1949 THROUGH THE MID1980S HERZOG HEINE EXECUTED NEARLY HALF THE TRADES FOR MR HEINE'S FUNDS ALL THIS BECAME OF INTEREST TO THE SEC WHICH CENSURED HEINE SECURITIES IN 1988 FOR NOT PROPERLY DISCLOSING THAT BETWEEN 1985 AND 1987 TRADES ROUTED THROUGH HERZOG HEINE GENERATED A TOTAL OF 24 MILLION IN COMMISSIONS PAID TO MR PRICE WHO HAD JOINED HEINE SECURITIES IN THE 1970S AND TO MR HEINE WHO WAS ALSO A HERZOG HEINE BROKER AFTER MR HEINE DIED MR PRICE TOOK OVER HEINE SECURITIES AND UNDER SEC PRESSURE INSTITUTED FINANCIAL CONTROLS AND COMPLIANCE COMMITTEES HE ALSO DOUBLED HIS STAFF TO 50 EMPLOYEES TO RUN THE MUTUAL FUNDS WHICH NOW HAVE 55 BILLION IN ASSETS MORE THAN TWICE THEIR 1987 TOTAL HOWEVER MR PRICE HASN'T ANY OWNERSHIP STAKE IN HERZOG HEINE MR PRICE'S FOUR FUNDS WHICH MIX TRADITIONAL SECURITIES WITH HIGHERRISK TURNAROUND STOCKS HAVE BEEN ROARING WINNERS MUTUAL SHARES AT 32 BILLION HIS LARGEST FUND RANKS FIRST IN PERFORMANCE AMONG ALL GROWTHANDINCOME FUNDS OVER THE PAST 20 YEARS AND FIFTH OVER THE PAST 10 ACCORDING TO LIPPER ANALYTICAL SECURITIES CORP THE NO 2 FUND IN THAT CATEGORY OVER THE PAST 10 YEARS MR PRICE'S MUTUAL QUALIFIED FUND WITH 138 BILLION IN ASSETS YET THE FIRM'S BASIC STRUCTURE CONTINUES TO LAG BEHIND WALL STREET'S REGULATORYCOMPLIANCE STANDARDS POTENTIAL CONFLICTS AT MOST INVESTMENT FIRMS ESPECIALLY THOSE THAT MIX INVESTMENT ADVISERS ANALYSTS AND BROKERS UNDER ONE ROOF ARE HANDLED BY PUTTING UP A SOCALLED CHINESE WALL WHICH IS A FUNCTIONAL AND OFTEN PHYSICAL SEPARATION BETWEEN ADVISERS TO COMPANIES AND TRADERS IN THOSE COMPANIES' STOCKS MR PRICE ACKNOWLEDGES THAT HIS FIRM HAS NO CHINESE WALLS EVERYONE'S IN ONE ROOM AND EVERYONE KNOWS WHAT THEY CAN AND CAN'T DO ACCORDING TO BRADLEY TAKAHASHI A FORMER SEC OFFICIAL WHOM MR PRICE HIRED AS COMPLIANCE OFFICER IN 1989 MAYBE THREE TIMES A DAY AN ANALYST WILL HAVE TO SAY TO ONE OF HIS COMPANIES ON THE OTHER END OF THE LINE THIS BIT OF INFO YOU'RE TELLING ME WHO ELSE KNOWS IT IS IT INSIDER INFORMATION' THE ANSWER IS SOMETIMES YES MR TAKAHASHI SAYS MEANING THAT WE'LL HAVE TO FREEZE TRADING IN THAT STOCK UNTIL THE INFORMATION IS MADE PUBLIC HE SAYS MAJOR STOCK FREEZES MAY OCCUR SIX OR EIGHT TIMES A YEAR AN ADDED COMPLIANCE PROBLEM MR TAKAHASHI ACKNOWLEDGES IS THAT A DOZEN OF MUTUAL SERIES' ANALYSTS ARE ALSO HERZOG HEINE BROKERS EACH WITH HIS OR HER OWN CLIENTS MR TAKAHASHI LIKE MR HERZOG CALLS THE ARRANGEMENT A RESIDUAL OF THE OLD DAYS WHEN THE FIRMS WERE MORE VISIBLY LINKED NOW MR TAKAHASHI SAYS IT'S CONSIDERED AN ADDED BENNIE BENEFIT SO THE ANALYSTS CAN MAKE A LITTLE EXTRA MONEY TRADING FOR FAMILY OR FRIENDS HOWEVER HERZOG HEINE HAS DONE WELL IN A NUMBER OF SECURITIES WHILE MR PRICE AND THE MUTUAL SERIES FUNDS WERE DEEPLY INVOLVED IN THE TURNAROUNDS RAISING QUESTIONS OF HOW MUCH HERZOG HEINE KNOWS ABOUT MR PRICE'S FAVORITE PLAYS NOTABLE AMONG THESE COMPANIES IS SUNBEAM MR PRICE'S INVESTMENT OF 60 MILLION IN OCTOBER 1990 WAS CRITICAL IN HELPING THE HOUSEHOLDAPPLIANCE AND OUTDOORPRODUCTS MAKER FORMERLY KNOWN AS ALLEGHENY INTERNATIONAL EMERGE FROM BANKRUPTCY PROCEEDINGS IT ALSO GAVE THE MUTUAL SERIES FUNDS ABOUT 30 OF SUNBEAM THROUGH A PARTNERSHIP WITH OTHER INVESTORS PLUS A SUNBEAM BOARD SEAT HELD BY PETER LANGERMAN MR PRICE'S DESIGNATE AND A TOP OFFICER AT MUTUAL SERIES THE INVESTMENT HAS PAID OFF HANDSOMELY 80 MILLION IN CASH RETURNED SO FAR AND STOCK AND OTHER SECURITIES CURRENTLY VALUED AT AN ADDITIONAL 447 MILLION STOCK WARRANTS THAT SUNBEAM DISTRIBUTED TO SOME INVESTORS AND CREDITORS OF ITS PREDECESSOR COMPANY HAD NO ACTIVE PUBLIC MARKET WHEN ISSUED IN DECEMBER 1990 MOST OF THE INVESTORS WHO HAD A CHOICE OPTED INSTEAD FOR CASH BELIEVING THE WARRANTS WOULD EXPIRE WORTHLESS AN OPTION HELD BY SUNBEAM TO GO PRIVATE AND BUY BACK THE WARRANTS AT 153 APIECE SEEMED TO LIMIT THEIR POTENTIAL APPRECIATION BUT HERZOG HEINE BECAME THE FIRST MARKET MAKER AND AN ACTIVE BUYER OF THE WARRANTS IN JUNE 1991 IT BOUGHT THEM FOR AS LITTLE AS 50 CENTS APIECE AND AS SUNBEAM RETURNED TO HEALTH RODE THEM UP TO ABOUT 20 BY MAY 1992 WHEN SUNBEAM DISCLOSED TO THE SURPRISE OF MANY OBSERVERS THAT IT WOULD MAKE A PUBLIC STOCK OFFERING IN AUGUST THAT MADE THE BUYBACK OPTION MOOT HERZOG HEINE DOMINATED THE MARKET IN THE WARRANTS HAVING BOUGHT 48000 MORE OF THEM THAN IT SOLD ACCORDING TO TRADING RECORDS MADE AVAILABLE TO THIS NEWSPAPER THE FIRM STILL OWNS THE WARRANTS NOW VALUED AT ABOUT 40 EACH HERZOG HEINE MADE A FORTUNE ON THOSE WARRANTS SAYS PETER FAULKNER A FORMER HERZOG HEINE BROKER WHO SAYS HE MOVED CLIENTS INTO THEM BECAUSE OF HIS INVESTMENT SKILL AND KNOWLEDGE OF THE SUNBEAM REORGANIZATION HE DENIES RECEIVING ANY NONPUBLIC INFORMATION FROM MR PRICE DID HERZOG HEINE KNOW THAT SUNBEAM WOULDN'T EXERCISE ITS OPTION BEFORE THE BROKERAGE FIRM BECAME SO DEEPLY INVOLVED FORMER OFFICIALS OF SUNBEAM SAY THE COMPANY DECIDED NOT TO BUY THE WARRANTS IN FEBRUARY 1991 BECAUSE IT SEEMED TO BE RECOVERING FASTER THAN EXPECTED REDUCING THE NEED TO TAKE IT OUT OF PUBLIC SCRUTINY AS A PRIVATE COMPANY THEY ADD THAT SOON THEREAFTER THEY BEGAN GETTING CALLS FROM HERZOG HEINE BROKERS AND TRADERS SEEKING INFORMATION ON THE COMPANY WHAT IS MORE SAYS PAUL KAZARIAN SUNBEAM'S FORMER CHIEF EXECUTIVE MESSRS PRICE AND LANGERMAN BOTH KNEW OF THE DECISION NOT TO BUY THE WARRANTS IN FEBRUARY 1991 IN FACT MR KAZARIAN SAYS THEY HELPED MAKE IT AT THAT POINT TWO THINGS BECAME CLEAR WE HAD FOUND A GOLD MINE OF ASSETS THAT WOULD MAKE THIS AN INCREDIBLE TURNAROUND AND THAT WE WOULDN'T BE BUYING BACK THE WARRANTS IN ANY GOINGPRIVATE TRANSACTION HE SAYS ONLY BY KNOWING BOTH THINGS COULD YOU KNOW JUST HOW VALUABLE THOSE WARRANTS WOULD BE MESSRS PRICE AND LANGERMAN SAY THEY DON'T RECALL WHEN THEY KNEW THAT SUNBEAM HAD DECIDED AGAINST THE BUYBACK THEY SAY THEY DIDN'T INFORM HERZOG HEINE OF THE DECISION PRIOR TO PUBLIC DISCLOSURE MR KAZARIAN SAYS HE KNEW OF THE HERZOG HEINE TRADING AT THE TIME AND WAS SUSPICIOUS BUT HE DECLINES TO SAY WHY HE DIDN'T INFORM REGULATORS HE SAYS HE NOW IS WILLING TO SPEAK ABOUT SUNBEAM'S INNER WORKINGS BECAUSE HE IS IN A BITTER LEGAL DISPUTE WITH MR PRICE WHO ENCOURAGED SUNBEAM'S BOARD TO OUST MR KAZARIAN IN JANUARY 1993 DIRECTORS SAY MR KAZARIAN WAS FIRED FOR ERRATIC BEHAVIOR AND HASTY DECISIONS THAT WOULD HURT THE COMPANY MR KAZARIAN CONTENDS THAT MAJOR INVESTORS SUCH AS MR PRICE PUSHED THE BOARD TO FIRE HIM IN ORDER TO REALIZE GAINS ON THEIR SUNBEAM INVESTMENTS HERZOG HEINE'S MARKUPS IN THE WARRANTS WERE LUCRATIVE IT SOMETIMES SOLD THE SECURITIES AT PRICES 50 ABOVE ITS PURCHASE PRICES ON THE SAME DAY ACCORDING TO RECORDS AS OF APRIL THE FIRM HAS BOUGHT 160000 MORE WARRANTS THAN IT SOLD TRADING IN SEVERAL OTHER COMPANIES FOLLOWS A SIMILAR PATTERN MR PRICE TAKES A LARGE STAKE AND BY VIRTUE OF THIS OR HIS CLOSE TIES TO THE COMPANY MAY BE RESTRICTED FROM TRADING HERZOG HEINE UNDER THIS PATTERN BEGINS HEAVY TRADING SOON THEREAFTER HITCHING ITS WAGON TO A WINNER IN 1989 MR PRICE BOUGHT 50 OF ZENITH LABORATORIES FOR 9 MILLION EQUAL TO 290 A SHARE AS PART OF ITS RESTRUCTURING WHEN THE NEW JERSEY PHARMACEUTICAL COMPANY EMERGED FROM BANKRUPTCY PROCEEDINGS IN DECEMBER 1989 AND ITS STOCK WAS OFFERED TO THE PUBLIC AT ABOUT 750 A SHARE HERZOG HEINE WAS AMONG THE FIRST MARKET MAKERS WITHIN A MONTH THE SHARES HIT 1150 THE FIRM STUCK BY THE WILDLY FLUCTUATING STOCK THROUGH 1990 AND 1991 WHILE A FEW OTHER MARKET MAKERS DISCOURAGED CAME AND WENT THEN IN JANUARY 1992 THE STOCK BEGAN RISING AGAIN FROM 14 A SHARE TO 43 CURRENTLY OVER THE PAST YEAR HERZOG HEINE HAS BEEN AMONG THE FIRST TO BEGIN TRADING VIGOROUSLY AFTER MR PRICE HAS TAKEN LARGE POSITIONS IN OTHER COMPANIES' STOCKS INCLUDING THOSE OF KENDALL INTERNATIONAL INC A MANSFIELD MASS MEDICALPRODUCTS COMPANY AND UNITED POSTAL BANCORP A THRIFT BASED IN ST LOUIS IN THE PAST YEAR KENDALL'S STOCK HAS MORE THAN DOUBLED AND UNITED POSTAL'S HAS SURGED THREEFOLD IN THE WAKE OF INQUIRIES INTO THEIR INTERLOCKING RELATIONSHIPS HERZOG HEINE AND MUTUAL SERIES MAY BE TRYING TO DISENGAGE FOR YEARS MR PRICE WAS AN INVESTMENT ADVISER TO HERZOG HEINE A ROLE FOR WHICH HE WAS PAID 80000 IN 1992 AFTER INQUIRIES FROM THIS NEWSPAPER AND THE SEC BEGAN THE ARRANGEMENT WAS SEVERED EFFECTIVE MAY 31 HE SAYS HIS INVESTMENTADVISORY ROLE WAS NOT ENDED IN RESPONSE TO OUTSIDE INQUIRIES BUT BECAUSE OF AN ONGOING REVIEW OF OUR RELATIONSHIPS MR HERZOG SAYS THAT THE NAMES OF THE SECURITIES THAT MR PRICE RECOMMENDED IN THE PAST AND THE REVENUE GENERATED FROM THESE RECOMMENDATIONS ARE PROPRIETARY INFORMATION HE ALSO DECLINES TO DISCLOSE HOW MUCH MR PRICE EARNS AS A HERZOG HEINE BROKER YET HERZOG HEINE RECEIVED 24 OF ALL BROKERAGE COMMISSIONS PAID BY MUTUAL SERIES LAST YEAR FOR TRADES IN ITS PORTFOLIO MR HERZOG ADDS THAT BUSINESS FROM MUTUAL SERIES ACCOUNTS FOR ABOUT 15 OF HERZOG HEINE'S COMMISSIONS AND IS IN PART COMPENSATION FOR STOCK RESEARCH FOR MUTUAL SERIES INCLUDING RECOMMENDATIONS TO BUY VARIOUS HOT ISSUES OF COMPANIES COMING OUT OF RESTRUCTURING MR PRICE SAYS HE HAS DONE THE SAME FOR HERZOG HEINE AND SOMETIMES SUGGESTS THAT IT BECOME A MARKET MAKER IN A PARTICULAR STOCK IF WE'RE NOT PLEASED WITH THE CURRENT MARKET MAKERS OUT THERE DESPITE ALL THIS GIVE AND TAKE MR HERZOG SAY EMPLOYEES AT HIS BROKERAGE DON'T EVER REALLY KNOW WHAT MIKE PRICE IS UP TO ALTHOUGH SOME HERZOG HEINE BROKERS ARE MUTUAL SERIES ANALYSTS SOME OF THESE PEOPLE WITH DUAL ROLES SIT AT THE SAME TRADING DESK WHERE MR PRICE BUYS AND SELLS MUTUAL SERIES STOCKS AT HIS OFFICE IN SHORT HILLS ABOUT 30 MINUTES WEST OF NEW YORK CITY MR PRICE TALKS FERVENTLY ABOUT THE SUBTLETY NEEDED TO HANDLE VULTURE INVESTING HIS STYLE OF FINDING TURNAROUNDS THROUGH A PUBLIC MUTUAL FUND THE DILEMMA IS THAT WE NEED TO KNOW AS MUCH ABOUT COMPANIES AS WE CAN BUT AVOID WHERE POSSIBLE GETTING INTO NONPUBLIC INFORMATION OR RESTRICTED ARRANGEMENTS THAT KEEPS US FROM TRADING THEIR SECURITIES HE SAYS IN THE FAUXVENETIAN BOARDROOM ALL RED WALLS AND CHANDELIERS IN HIS OTHERWISESPARE OFFICES LISTEN AS A MUTUAL FUND TRADING LIQUID SECURITIES IS WHAT WE'RE ALL ABOUT MR PRICE'S LATEST TACK IS TO SUPPORT STOCK OFFERINGS ACTING AS AN INVESTMENT BANK MIGHT BUT AVOIDING THE TRADING RESTRICTIONS THAT UNDERWRITERS USUALLY FACE HE MIGHT SUGGEST THAT A COMPANY OFFER CURRENT SHAREHOLDERS THE RIGHT TO BUY NEW SHARES AT A DISCOUNT PART OF WHAT THEY DON'T BUY MR PRICE AGREES TO PURCHASE EVENTUALLY TAKING A LARGE STAKE AT A BARGAIN PRICE HE SAYS HIS ROLE IS MORE THAT OF AN INVESTOR RATHER THAN AN ADVISER DIFFERENTIATING HIM FROM AN UNDERWRITER YET THE TECHNIQUE WHICH MR PRICE TRIED WITH SIX TROUBLED BANKS SINCE EARLY 1992 PLACES HIM IN AN ESPECIALLY SNUG RELATIONSHIP WITH CORPORATE MANAGERS OFTEN HARDPRESSED AND ANXIOUS TO ELICIT HIS COMMITMENT CONSTELLATION BANCORP A 24BILLIONASSET BANK IN NEW BRUNSWICK NJ NEEDED A CAPITAL INFUSION WHEN MR PRICE ARRIVED LAST FALL SAYS MICHAEL MARINELLI THE BANK'S CHIEF FINANCIAL OFFICER WE WERE GRATEFUL MR MARINELLI SAYS MIKE PRICE CAME REALLY EXAMINED OUR BANK GAVE US A VOTE OF CONFIDENCE AND OTHER INVESTORS FOLLOWED THE OFFERING WENT VERY WELL MR PRICE ENDED UP BUYING 99 OF THE BANK AT 375 A SHARE IN A RIGHTS OFFERING COMPLETED IN DECEMBER WHEN THE BANK'S STOCK WAS TRADING AT 5 IT NOW TRADES AT 8 A SHARE BUT MR MARINELLI'S CONTINUING CONVERSATIONS WITH MR PRICE'S ANALYSTS CAUSE THE BANKER SOME DISCOMFORT IT DRIVES ME BONKERS TRYING TO FIGURE OUT WHAT I'M ALLOWED TO TELL THEM AND WHAT'S INSIDER INFORMATION HE SAYS THEY KNOW SO MUCH ABOUT US NOW IT GETS CONFUSING AS WITH SIMILAR RIGHTS OFFERINGS THAT MR PRICE ENGINEERED RECENTLY HERZOG HEINE ARRIVED IN THE FIRST GROUP OF MARKET MAKERS IN CONSTELLATION'S RIGHTS AND ALSO MAKES A MARKET IN ITS COMMON STOCK WITH A STEADY FLOW OF INSIDER INFORMATION BROKERS IN HIS TRADING ROOM AND CONFUSED CHIEF FINANCIAL OFFICERS ON THE PHONE MR PRICE ACKNOWLEDGES THAT THERE ARE DELICATE ISSUES ABOUT NONPUBLIC INFORMATION THAT WE HAVE TO CONSTANTLY DEAL WITH AND WE CAN'T AFFORD TO MESS UP CONSIDERING WE'RE UNDER A MICROSCOPE FROM THE SEC HE ADDS QUIETLY YOU KNOW YOU DON'T HAVE TO CHEAT IVAN BOESKY DIDN'T HAVE TO CHEAT HE COULD HAVE MADE MONEY JUST CAREFULLY FOLLOWING THE RULES 9306090088 930609 INTERNATIONAL US TO SEEK ALLIES' AID IN AIR COVER FOR THE UN PEACEKEEPERS IN BOSNIA BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL LUXEMBOURG THE CLINTON ADMINISTRATION AT MEETINGS IN EUROPE THIS WEEK WILL ASK ITS ALLIES TO PLAY A MAJOR ROLE WITH THE US IN PROVIDING AIR POWER TO PROTECT UNITED NATIONS PEACEKEEPERS IN BOSNIA AN OFFICIAL TRAVELING WITH SECRETARY OF STATE WARREN CHRISTOPHER TO EUROPE SAID YESTERDAY THAT THE US COMMITMENT TO PROTECT FROM THE AIR WOULD BECOME A COMMITMENT BY THE NORTH ATLANTIC TREATY ORGANIZATION THE OFFICIAL DECLINED TO SPECIFY WHAT ROLE NATO MEMBERS MIGHT TAKE IN PROTECTING PEACEKEEPERS AT SIX MUSLIM ENCLAVES ANOTHER US OFFICIAL ON MR CHRISTOPHER'S AIRPLANE SAID THIS WAS THE ADMINISTRATION'S FIRST PUBLIC REFERENCE TO THE FACT THAT THE AIRPROTECTION OPERATION WOULD INVOLVE NATO IN A MAJOR WAY MR CHRISTOPHER NOTIFIED NATO FOREIGN MINISTERS IN LETTERS LAST WEEK THAT THE US WANTED TO DISCUSS THESE OPERATIONS WHICH HAVE BEEN AUTHORIZED BY THE UN SECURITY COUNCIL BUT THE US PROPOSAL IS LIKELY TO STIR DEBATE DURING TWO DAYS OF MEETINGS IN ATHENS THIS WEEK AS WASHINGTON AND SOME OF ITS EUROPEAN ALLIES HAVE A DIFFERENT VIEW OF THE AIRPROTECTION OPERATION AND THE ALLIES' INTERPRETATION COULD DRAW THE US FURTHER INTO THE CONFLICT IN BOSNIA THE US INSISTS THAT IT WANTS TO CONFINE THE USE OF AIR STRIKES TO PROTECTING AND RESCUING THE PEACEKEEPERS WHEN THEY REQUEST ASSISTANCE BUT NOT TO EXTEND THAT PROTECTION TO THE SAFE HAVEN ENCLAVES FOR MUSLIMS THAT ARE BEING GUARDED BY THE PEACEKEEPERS THE EUROPEANS INTERPRET THE UN RESOLUTION TO SAY THAT AIR POWER SHOULD BE USED AGAINST THE BOSNIAN SERBS IF THEY ASSAULT THE MUSLIM ENCLAVES OR IF AID SUPPLIES BEING SENT TO THE MUSLIMS ARE DISRUPTED MR CHRISTOPHER'S PROPOSAL ALSO IS LIKELY TO TRIGGER COMPLAINTS FROM ALLIES AS IT HAD BEEN WIDELY ASSUMED THAT THE US WOULD PLAY THE PREDOMINANT ROLE IN PROVIDING AIR STRIKES TO PROTECT THE PEACEKEEPERS FRANCE WHICH HAS DEPLOYED ABOUT 5000 TROOPS TO THE FORMER YUGOSLAVIA AS PEACEKEEPERS HAS CRITICIZED THE US FOR THE CURRENT DIVISION OF LABOR UNDER WHICH EUROPEAN ALLIES PROVIDE GROUND TROOPS WHILE THE US FLIES RELIEF MISSIONS FROM THE RELATIVE SAFETY OF THE AIR TO ASSUAGE SOME OF THESE FEELINGS MR CHRISTOPHER ALSO PLANS TO REITERATE TO THE ALLIES THAT THE US IS CONSIDERING PROVIDING SOME GROUND FORCES IF THE CONFLICT SPILLS OVER INTO MACEDONIA THE REPUBLIC IN THE SOUTHERN PART OF FORMER YUGOSLAVIA 9306090087 930609 WHITE HOUSE THINKING TWICE ABOUT BABBITT OPPOSITION TO CANDIDACY FOR HIGH COURT POST BRINGS ON HESITATION BY JEFFREY H BIRNBAUM AND ROSE GUTFELD STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS HESITATING ABOUT NAMING INTERIOR SECRETARY BRUCE BABBITT TO THE SUPREME COURT AS FORCES ON BOTH THE POLITICAL RIGHT AND THE LEFT VOICE OBJECTIONS THE CONCERNS EXPRESSED BY ENVIRONMENTAL GROUPS ON THE LEFT ARE HAVING THE BIGGEST EFFECT AIDES SAID IN PARTICULAR THE PRESIDENT WHOSE ADMINISTRATION HAS BEEN PUNCTUATED BY INDECISION IS SAID TO BE AGONIZING OVER WHETHER HE SHOULD REMOVE MR BABBITT FROM SO IMPORTANT A CABINET POST IN WHICH HE IS SO WELLRESPECTED AIDES SAID MR BABBITT IS STILL A STRONG CONTENDER BUT THE PROSPECTS FOR OTHER CANDIDATES ALSO HAVE RISEN PARTICULARLY STEPHEN BREYER THE CHIEF FEDERAL APPEALS COURT JUDGE IN BOSTON ENVIRONMENTAL GROUPS SUCH AS THE AUDUBON SOCIETY AND THE ENVIRONMENTAL DEFENSE FUND ARE URGING THE WHITE HOUSE TO KEEP MR BABBITT WHERE HE IS ASSERTING THEY NEED HIM AS AN ADVOCATE AT THE INTERIOR DEPARTMENT SHORT OF THAT THEY ARE INSISTING THAT PRESIDENT CLINTON PLEDGE TO NAME A STRONG ENVIRONMENTALIST TO SUCCEED MR BABBITT AT THE AGENCY A LEADING CANDIDATE FOR THE JOB IS BOB ARMSTRONG ASSISTANT INTERIOR SECRETARY FOR LAND AND MINERALS MANAGEMENT OTHERS INCLUDE REP BILL RICHARDSON OF NEW MEXICO FORMER SEN TIM WIRTH OF COLORADO REP GEORGE MILLER OF CALIFORNIA AND FORMER GOV GEORGE SINNER OF NORTH DAKOTA ALL ARE DEMOCRATS ON THE POLITICAL RIGHT REPUBLICAN STAFF MEMBERS IN THE SENATE MET PRIVATELY TO DISCUSS WHAT PROBLEMS IN MR BABBITT'S PAST THEY MIGHT RESURRECT AS A CHALLENGE TO HIS CONFIRMATION AND SEN ORRIN HATCH OF UTAH THE RANKING REPUBLICAN ON THE SENATE JUDICIARY COMMITTEE SIGNALED HE PREFERRED A FEDERAL JUDGE WHO WOULD BE LESS LIKELY TO IMPOSE HIS OR HER OWN PHILOSOPHY ONTO THE LAW IN ADDITION SEN HATCH AND SENATE MINORITY LEADER ROBERT DOLE SPOKE HIGHLY OF JUDGE BREYER SEN HATCH ASSERTED THAT THE JUDGE WOULD HAVE AN EASIER TIME BEING CONFIRMED THAN MR BABBITT A FACT THAT SURELY WOULD BE ATTRACTIVE TO PRESIDENT CLINTON WHO IS HUNGRY FOR A VICTORY OF SOME SORT ON CAPITOL HILL ON FRIDAY JUDGE BREYER WAS HIT BY A SLOWMOVING CAR WHILE RIDING HIS BICYCLE IN HIS HOMETOWN OF CAMBRIDGE MASS HE BROKE TWO RIBS AND PUNCTURED A LUNG BUT A MEMBER OF THE COURT STAFF SAID HE IS RECOVERING QUICKLY AND IS EXPECTED TO BE OUT OF THE HOSPITAL SOON ANOTHER CANDIDATE APPEALS COURT JUDGE GILBERT MERRITT OF NASHVILLE TENN APPEARED TO BE FADING AS A CONTENDER MR BABBITT DECLINED TO COMMENT ABOUT HIS PROSPECTS TO SUCCEED RETIRING JUSTICE BYRON WHITE BUT AT A CONGRESSIONAL HEARING SEN PATRICK LEAHY D VT WHO SERVES ON THE JUDICIARY COMMITTEE TOLD MR BABBITT I MIGHT BE SEEING YOU IN THE COMING WEEKS I HOPE I MIGHT WHITE HOUSE HOPES FOR A SMOOTH CONFIRMATION COULD BE CLOUDED BY ALLEGATIONS THAT HAVE DOGGED MR BABBITT SINCE THE 1970S OVER HIS AID TO A COMPANY WITH LINKS TO ORGANIZED CRIME THE ALLEGATIONS WHICH MR BABBIT HAS CONSISTENTLY DENIED HAVE ARISEN ANEW IN A WASHINGTON TIMES ARTICLE IN RESPONSE TO MR BABBITT'S BEING CONSIDERED FOR THE SUPREME COURT SINCE THE MID1970S STATE AND FEDERAL AUTHORITIES HAVE INVESTIGATED ALLEGATIONS FROM PEOPLE WITH QUESTIONABLE BACKGROUNDS THAT MR BABBITT ACCEPTED A 45000 PAYOFF TO HELP EMPRISE CORP RETAIN DOGRACING LICENSES IN ARIZONA THE PROBES HAVEN'T SUBSTANTIATED THE CHARGES BUT HAVEN'T PUT THEM COMPLETELY TO REST MR BABBITT HAS CONSISTENTLY DENIED TAKING ANY PAYOFF EMPRISE'S LICENSES WERE IMPERILED BY THE BUFFALO NY COMPANY'S 1972 CONVICTION IN LOS ANGELES FEDERAL COURT OF HELPING HIDE THE OWNERSHIP INTEREST OF ORGANIZEDCRIME FIGURES IN A LAS VEGAS CASINO AS ARIZONA ATTORNEY GENERAL AND LATER AS GOVERNOR MR BABBITT SUPPORTED A CONTROVERSIAL DECISION THAT ALLOWED EMPRISE WHICH IS NOW CALLED DELAWARE NORTH COS TO REMAIN IN THE STATE ALSO HE ACCEPTED 6500 FROM A POLITICAL ACTION COMMITTEE CONNECTED TO DELAWARE NORTH MR BABBITT HAS CONSISTENTLY SAID THAT HE SAW NOTHING WRONG WITH TAKING THE MONEY AND THAT IT DIDN'T AFFECT ANY DECISIONS HE MADE AS GOVERNOR DELAWARE NORTH SIMILARLY DENIES ANY IMPROPER ACTION IN CONNECTION WITH MR BABBITT COINCIDENTALLY MR BABBITT IS EXPECTED TO ANNOUNCE SHORTLY THAT THE INTERIOR DEPARTMENT IS STICKING WITH THE BUSH ADMINISTRATION'S SELECTION OF DELAWARE NORTH TO BE NEW CONCESSIONAIRE AT YOSEMITE NATIONAL PARK IN CALIFORNIA A CONTRACT VALUED AT 15 BILLION JOHN R EMSHWILLER IN LOS ANGELES CONTRIBUTED TO THIS ARTICLE 9306090086 930609 LETTERS TO THE EDITOR SOUTHERN HERITAGE UNFAIRLY VILIFIED AS A SOUTHERNER I AM CONCERNED THAT THE SPIRIT OF ETHNIC CLEANSING MAY HAVE INFECTED PEOPLE WHO CLAIM TO BE ADVOCATES OF TOLERANCE AS ONE WHO HAS STUDIED SOUTHERN HISTORY WITH SPECIAL ATTENTION TO THE WAR FOR SOUTHERN INDEPENDENCE I FIND IT OFFENSIVE THAT TOLERANT AMERICANS INSIST ON PORTRAYING SOUTHERN HERITAGE AS EVIL THE ATTITUDE OF SEN CAROL MOSELEYBRAUN AS EXPLAINED IN YOUR MAY 6 ISSUE IS A CASE IN POINT SEN MOSELEYBRAUN WOULD DENY THE UNITED DAUGHTERS OF THE CONFEDERACY THE RIGHT TO RENEW THEIR DESIGN PATENT FOR THEIR INSIGNIA WHY BECAUSE THE UDC HONORS A FLAG THAT HELD BLACKS IN SLAVERY I WONDER WHY SHE FINDS THE CONFEDERATE FLAG SO OFFENSIVE IT NEVER FLEW OVER SLAVE SHIPS WHILE THE YANKEE US FLAG DID FOR ALMOST A CENTURY I MIGHT ADD THAT THESE VESSELS WERE PRIMARILY OWNED AND MANNED FROM NEW ENGLAND COLONIES AND LATER STATES WEB DUBOIS DECLARED THAT THE USE OF THE UNITED STATES FLAG ON SLAVE SHIPS WAS THE PRIMARY MEANS OF DEFENDING THE SLAVE TRAFFIC AFTER THE EUROPEAN NATIONS DECLARED SLAVE TRADE ILLEGAL SEN MOSELEYBRAUN IS CERTAINLY AWARE OF THE FACT THAT THE US CONSTITUTION PROTECTED SLAVE TRADE AT THE INSISTENCE OF THE NEW ENGLAND STATES WHICH AT THE TIME WERE ACTIVELY ENGAGED IN IT THE CONFEDERATE CONSTITUTION DECLARED SLAVE TRADING ILLEGAL AND PRESIDENT JEFFERSON DAVIS'S FIRST VETO WAS USED AGAINST A BILL THAT MIGHT HAVE VIOLATED THE SPIRIT OF THIS SOUTHERN CONSTITUTIONAL PROVISION BECAUSE THE SOUTH LOST THE WAR FOR SOUTHERN INDEPENDENCE OUR ADVERSARY WROTE OUR HISTORY IN SO DOING IT USED THE MORAL SUASION OF BLOODY BAYONETS TO BRAND EVERYTHING SOUTHERN AS EVIL THE VICTOR NOT SATISFIED WITH DENYING THE RIGHT OF SELFDETERMINATION STILL ATTEMPTS TO USE ITS POLITICAL POWER TO DESTROY THE HERITAGE OF THE SOUTHERN PEOPLE YOUR ARTICLE ABOUT THE EMBLEM OF THE UNITED DAUGHTERS OF THE CONFEDERACY REPORTS AN ACT OF BLATANT BIGOTRY ON THE PART OF SEN MOSELEYBRAUN AS WELL AS A LACK OF KNOWLEDGE OF THE UNDERLYING CAUSES OF THE WAR BETWEEN THE STATES SLAVERY WAS ONLY ONE ISSUE AND PROBABLY NOT THE MOST IMPORTANT THAT CAUSED THE SECESSION OF THE SOUTHERN STATES MANY HISTORIANS AGREE THAT ECONOMIC PROBLEMS WERE FAR MORE IMPORTANT IN LEADING THEM TO SEEK THEIR INDEPENDENCE IN 1860 AND 1861 JUST AS THE AMERICAN COLONIES DID IN 1776 IT'S A SHAME THE SENATOR HAD TO TAKE OUT HER PERSONAL ANIMUS ON THE UDC 9306090085 930609 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 BELLSOUTH TELECOMMUNICATIONS INC 500 MILLION TWOPART ISSUE OF NOTES AND DEBENTURES PRICED THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ACCORDING TO MCM CORPORATEWATCH THE OFFERING INCLUDES A 200 MILLION ISSUE OF NOTES DUE JUNE 15 2004 PRICED AS 6375S AT 99189 TO YIELD 6479 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 042 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE OFFERING ALSO INCLUDES A 300 MILLION ISSUE OF DEBENTURES DUE JUNE 15 2033 PRICED AS 75S AT 99623 TO YIELD 753 NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 065 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND THE ISSUES ARE RATED TRIPLEA BY BOTH MOODY'S INVESTORS SERVICE AND STANDARD & POOR'S CORP BELLSOUTH TELECOM IS A UNIT OF BELLSOUTH CORP DAYTON HUDSON CORP 200 MILLION OF DEBENTURES DUE JUNE 15 2023 PRICED AS 7875S AT 99226 TO YIELD 7943 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 105 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA3 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO FIRST CHICAGO CORP 200 MILLION OF SUBORDINATED NOTES DUE JUNE 15 2003 PRICED AS 6875S AT 9975 TO YIELD 691 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 084 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE RATED BAA2 BY MOODY'S AND SINGLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC INTERNATIONAL BUSINESS MACHINES CORP 18 BILLION TWOPART ISSUE OF NOTES AND DEBENTURES PRICED THROUGH UNDERWRITERS LED BY MORGAN STANLEY & CO THE TOTAL AMOUNT OF SECURITIES OFFERED WAS RAISED FROM A PREVIOUSLY PLANNED 15 BILLION THE OFFERING INCLUDES A 125 BILLION OFFERING OF NOTES DUE JUNE 15 2000 PRICED AS 6375S AT 99693 TO YIELD 643 THE ISSUE WAS INCREASED IN SIZE FROM A PLANNED 1 BILLION THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 07 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE IBM ALSO OFFERED 550 MILLION OF DEBENTURES DUE JUNE 15 2013 PRICED AS 75S AT 99284 TO YIELD 757 THE TRANCHE WAS INCREASED IN SIZE FROM A PLANNED 500 MILLION THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 065 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND BOTH ISSUES ARE RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P NEWS AMERICA HOLDINGS INC 100 MILLION OF NOTES DUE JUNE 1 2000 PRICED AT PAR TO YIELD 745 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 176 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE RATED BA2 BY MOODY'S AND TRIPLEBMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH CITICORP SECURITIES MARKETS INC NEWS AMERICA HOLDINGS IS A UNIT OF NEWS CORP SALOMON INC 150 MILLION OF NOTES DUE JUNE 15 2003 PRICED AS 7S AT 99568 TO YIELD 7061 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF ONE 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 SALOMON BROTHERS INC THE INVESTMENTBANKING ARM OF SALOMON INC VIRGINIA ELECTRIC & POWER CO 200 MILLION OF FIRST AND REFUNDING MORTGAGE BONDS DUE JUNE 1 2023 PRICED AS 75S AT 9882 TO YIELD 76 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 071 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 VIRGINIA ELECTRIC & POWER IS A UNIT OF DOMINION RESOURCES INC KSWISS INC 13 MILLION CLASS A SHARES PRICED AT 2458 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PAPA JOHN'S INTERNATIONAL INC INITIAL OFFERING OF 15 MILLION SHARES OF COMMON STOCK PRICED AT 13 APIECE THROUGH LEAD UNDERWRITER MONTGOMERY SECURITIES SUNGLASS HUT INTERNATIONAL INC INITIAL OFFERING OF 4042421 COMMON SHARES PRICED AT 20 APIECE THROUGH LEAD UNDERWRITER MONTGOMERY SECURITIES HARRISBURG AUTHORITY OF PENNSYLVANIA 390 MILLION SERIES 1993 REVENUE REFUNDING BONDS OFFERED THROUGH A COMMONWEALTH SECURITIES & INVESTMENTS INC GROUP THE BONDS ARE 635S PRICED AT PAR TO YIELD 635 ON AUG 15 2015 S&P HAS RATED THE OFFERING DOUBLEA OHIO 100 MILLION SERIES S HIGHWAYOBLIGATION BONDS APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE NET INTEREST COST AT 453 THE BONDS RATED DOUBLEA BY BOTH MOODY'S AND S&P ARE WERE PRICED TO YIELD FROM 25 IN 1994 TO 49 IN 2003 OHIO 15 MILLION OF SERIES C COAL DEVELOPMENT BONDS APPARENTLY WON BY A FIRST BOSTON CORP GROUP WITH A BID SETTING THE NET INTEREST COST AT 4635 THE BONDS RATED DOUBLEA BY BOTH MOODY'S AND S&P WERE PRICED TO YIELD FROM 25 IN 1994 TO 49 IN 2003 OMAHA NEB PUBLIC POWER DISTRICT 1731 MILLION ELECTRICSYSTEM REVENUE BONDS 1993 SERIES C TENTATIVELY PRICED BY A LEHMAN BROTHERS GROUP TO YIELD FROM 545 IN 2008 TO 573 IN 2017 BONDS DUE 2008 YIELD 545 BONDS DUE 2009 YIELD 55 BONDS DUE 2010 YIELD 555 THE 498 MILLION TERM BONDS DUE 2013 WERE PRICED AS 55S AT 98814 TO YIELD 56 AND THE 815 MILLION TERM BONDS DUE 2017 WERE PRICED AS 55S AT 97039 TO YIELD 573 THE BONDS ARE RATED DOUBLEA BY BOTH MOODY'S AND S&P ORLANDOORANGE COUNTY FLA EXPRESSWAY AUTHORITY 5636 MILLION OF BONDS TENTATIVELY PRICED BY A PAINEWEBBER INC GROUP TO YIELD FROM 435 IN 1998 TO 6 IN 2023 THE OFFERING CONSISTS OF 4275 MILLION SENIOR LIEN REVENUE REFUNDING BONDS SERIES 1993 YIELDING FROM 435 IN 1998 TO 572 IN 2018 AND 2023 THE BONDS ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P BONDS DUE 19982007 2010 AND 2013 ARE AMBACINSURED WHILE BONDS DUE 2018 AND 2023 ARE FGICINSURED THERE ARE 145 MILLION EMBEDDED CAP BONDS AMBACINSURED AND TRIPLEARATED DUE 2005 AND PRICED AT PAR TO YIELD 525 THERE ARE 516 MILLION ARCS/LEVRRS FGICINSURED AND RATED TRIPLEA DUE 2004 AND 2009 SECURITIES DUE 2004 ARE NOT BEING PUBLICLY REOFFERED WHILE THE 2009 MATURITY IS PRICED AT PAR TO YIELD 5439 ALAO THERE ARE 70 MILLION JUNIOR LIEN REVENUE REFUNDING BONDS SERIES 1993 PRICED AS 595S TO YIELD 6 IN 2023 THE BONDS ARE RATED SINGLEAMINUS BY S&P RICHMOND VA 2722 MILLION 1993 SECURITIES PRICED BY A GOLDMAN SACHS & CO GROUP INCLUDED IN THE OFFERING ARE THE FOLLOWING 1745 MILLION SERIES 1993A GENERALOBLIGATION PUBLICIMPROVEMENT REFUNDING BONDS PRICED TO YIELD FROM 27 IN 1994 TO 57 IN 2022 917 MILLION SERIES 1993B GENERAL OBLIGATION PUBLICIMPROVEMENT BONDS WITH YIELDS RANGING FROM 27 IN 1994 TO 57 IN 2023 AND 59 MILLION SERIES 1993 GENERAL OBLIGATION SERIALEQUIPMENT NOTES PRICED TO YIELD FROM 27 IN 1994 TO 435 IN 1998 BOTH MOODY'S AND S&P HAVE RATED THE SECURITIES DOUBLEA UNIVERSITY OF CALIFORNIA REGENTS 2576 MILLION SERIES A HOUSINGSYSTEM REVENUE BOND OFFERING APPARENTLY WON BY A BANK OF AMERICA GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 55765 THE BONDS ARE MBIAINSURED AND ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P YIELDS RANGE FROM 29 IN 1994 TO 565 IN 20112014 THE 376 MILLION TERM BONDS DUE 2018 WHICH HAVE A 55 COUPON ARE NOT BEING PUBLICLY REOFFERED MBNA NATIONAL BANK NA 1 BILLION OF CREDITCARD ASSETBACKED CERTIFICATES PRICED TO FLOAT 15 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE TO A 12 CAP ACCORDING TO MCM CORPORATEWATCH THE ISSUE MBNA MASTER CREDIT CARD TRUST 19932 WAS PRICED WITH AN INITIAL COUPON OF 34 AT 99 30/32 TO YIELD 342 BY UNDERWRITERS LED BY FIRST BOSTON CORP THE CERTIFICATES HAVE A 31YEAR AVERAGE LIFE THE CERTIFICATES RATED TRIPLEA BY BOTH MOODY'S AND S&P WERE BACKED BY A 12 CASH COLLATERAL ACCOUNT MBNA AMERICA BANK NA IS THE SELLER AND SERVICER OF THE LOANS THE DEAL IS STRUCTURED WITH A 30MONTH REVOLVING PERIOD AND 12MONTH CONTROLLED AMORTIZATION THE EXPECTED FINAL MATURITY IS JAN 15 1997 THE LEGAL MATURITY IS JULY 15 1994 MBNA NATIONAL IS A UNIT OF MBNA CORP BANK OF CHINA CHINA 200 MILLION OF FLOATINGRATE EURONOTES DUE JULY 2 1998 AT ISSUE PRICE PAR VIA CREDIT SUISSE FIRST BOSTON LTD NOTES PAY INTEREST AT 50 BASIS POINTS ABOVE QUARTERLY LONDON INTERBANK OFFERED RATE FOR US DOLLARS FEES 03 POINT BANCO NACIONAL DE DESENVOLVIMENTO ECONOMICO E SOCIAL BRAZILIAN AGENCY 80 MILLION OF 9375 EUROBONDS DUE JUNE 23 1998 AT ISSUE AND FIXED REOFFER PRICE 9959 VIA ING BANK NV BONDS YIELD 415 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES ONE POINT PAYABLE SEMIANNUALLY BRITISH GAS PLC UK 250 MILLION OF 8875 EUROBONDS DUE JULY 8 2008 AT ISSUE PRICE 101918 VIA SAMUEL MONTAGU & CO AND SALOMON BROTHERS INTERNATIONAL LTD REOFFERED AT 99918 TO YIELD 889 ANNUAL A SPREAD OF 30 BASIS POINTS ABOVE 9 GILT DUE 2008 FEES 25 POINTS CITY OF KOBE JAPAN 240 MILLION OF 6375 EUROBONDS DUE JULY 14 2003 VIA BANK OF TOKYO CAPITAL MARKETS LTD REOFFERED AT 9962 TO YIELD 643 A MARGIN OF 27 BASIS POINTS ABOVE COMPARABLE TREASURY GUARANTOR GOVERNMENT OF JAPAN FEES 0325 POINT DAIWA RAKUDA INDUSTRY CO JAPANESE PARENT 85 MILLION OF 1 EUROBONDS WITH EQUITYWARRANTS ATTACHED DUE JUNE 24 1997 AT ISSUE PRICE PAR VIA DAIWA EUROPE LTD GUARANTOR FUJI BANK FEES 225 POINTS LESS 015 POINT FOR COMANAGERS EACH 5000 BOND HAS ONE WARRANT ATTACHED TO PURCHASE SHARES IN COMPANY AT TERMS TO BE FIXED ON JUNE 15 1993 EXERCISE PERIOD OF WARRANTS WILL RUN FROM JULY 8 1993 TO JUNE 10 1997 FINANCE FOR DANISH INDUSTRY DENMARK AGENCY 300 MILLION DANISH KRONER OF 7125 EUROBONDS DUE JULY 15 1998 AT ISSUE PRICE 10175 VIA UNIBANK AS BONDS YIELD 716 ANNUAL AFTER DEDUCTING FULL FEES OF 1875 POINTS JAPAN FINANCE FOR MUNICIPAL ENTERPRISES JAPAN 150 MILLION SWISS FRANCS OF 475 PUBLIC BONDS DUE JULY 7 2003 PRICED AT 101 VIA SWISS BANK CORP FEES 2375 POINTS KFW INTERNATIONAL FINANCE INC GERMAN PARENT 500 MILLION OF 5875 EUROBONDS DUE JUNE 28 2000 AT ISSUE AND FIXED REOFFER PRICE 99208 VIA DEUTSCHE BANK AG LONDON BONDS YIELD 602 ANNUAL A SPREAD OF 23 BASIS POINTS ABOVE 55 US TREASURY DUE 2000 GUARANTOR KREDITANSTALT FUER WEIDERAUFBAU FEES 03 POINT MARKS & SPENCER FINANCE PLC UK PARENT 150 MILLION OF 7375 EUROBONDS DUE DEC 22 1998 VIA SG WARBURG SECURITIES LTD REOFFERED AT 9969 TO YIELD 743 A MARGIN OF 25 BASIS POINTS ABOVE 725 GILT DUE 1998 GUARANTOR MARKS & SPENCER PLC FEES 025 POINT MITSUBISHI INTERNATIONAL FINANCE NETHERLANDS BV JAPANESE PARENT 50 MILLION OF 6 EUROBONDS DUE JUNE 22 1998 AT ISSUE AND FIXED REOFFER PRICE 10025 VIA MITSUBISHI FINANCE INTERNATIONAL PLC BONDS YIELD 594 ANNUAL A SPREAD OF 58 BASIS POINTS ABOVE 5375 US TREASURY NOTE DUE 1998 THERE IS A KEEPWELL AGREEMENT WITH MITSUBISHI MOTORS CORP FEES 025 POINT RURAL AND INDUSTRIES BANK OF WESTERN AUSTRALIA AUSTRALIAN AGENCY 100 MILLION AUSTRALIAN DOLLARS OF 775 EUROBONDS DUE JULY 20 2000 AT ISSUE PRICE 10095 VIA HAMBROS BANK LTD BONDS YIELD 793 ANNUAL AT BREAKEVEN PRICE FOR COMANAGERS GUARANTOR TREASURER OF WESTERN AUSTRALIA FEES TWO POINTS LESS 0125 POINT FOR COMANAGERS SHINKO ELECTRIC INDUSTRIES JAPAN 160 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE JUNE 24 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 0875 COUPON AT PAR VIA CREDIT SUISSE EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM JULY 5 1993 TO JUNE 13 1997 TO PURCHASE COMPANY SHARES FINAL TERMS WILL BE FIXED JUNE 15 FEES 1625 POINTS SOCIETE NATIONALE DES CHEMINS DE FER FRANCE THREE BILLION FRENCH FRANCS OF 775 EUROBONDS DUE MARCH 1 2002 AT ISSUE AND FIXED REOFFER PRICE 10237 VIA BANQUE PARIBAS BONDS YIELD 737 ANNUAL A SPREAD OF 23 BASIS POINTS ABOVE 85 FRENCH TREASURY NOTE DUE 2002 NOTES WILL TRADE INTERCHANGEABLY WITH THREE BILLION FRANCS OF IDENTICAL OUTSTANDING NOTES ALL OTHER TERMS UNCHANGED FEES 0325 POINT UNION INDUSTRIELLE CREDIT FRANCE 100 MILLION SWISS FRANCS OF 5125 PUBLIC BONDS DUE JULY 2 1999 PRICED AT 10175 VIA COUTTS & CO FEES 1875 POINTS 9306090084 930609 PENNSYLVANIA INTENDS TO LIQUIDATE UNIT OF AMERICAN INTEGRITY PHILADELPHIA THE PENNSYLVANIA DEPARTMENT OF INSURANCE SAID IT PLANS TO TAKE STEPS IN THE NEAR FUTURE TO LIQUIDATE THE INSURANCE ARM OF AMERICAN INTEGRITY CORP IN LIGHT OF THE COMPANY'S FAILURE TO REFINANCE THE UNIT AMERICAN INTEGRITY SAID EFFORTS TO REFINANCE AMERICAN INTEGRITY INSURANCE CO THROUGH AN ACQUISITION BY PIONEER FINANCIAL SERVICES INC HAVE BEEN TERMINATED THE COMPANY SAID A LETTER OF INTENT TO ACQUIRE THE PROPERTY AND CASUALTY UNIT WAS WITHDRAWN FOLLOWING PRELIMINARY REVIEW BY THE INSURANCE DEPARTMENT THE DEPARTMENT SAID THE INSURANCE COMPANY'S FINANCIAL CONDITION HAS BEEN STEADILY DETERIORATING AND WITHOUT THE INFUSION OF FUNDS FROM AN ACQUISITION THE COMPANY WON'T REMAIN SOLVENT MUCH LONGER THE INSURANCE DEPARTMENT SAID THE COMPANY HAD 377 MILLION IN ASSETS AS OF MARCH 31 AND 71000 POLICIES IN FORCE AS OF LATE 1992 9306090083 930609 MARKETING & MEDIA VISA AND SPRINT PLAN 25 DISCOUNT TO AT&T'S LONGDISTANCE PHONE RATES BY STEVEN LIPIN STAFF REPORTER OF THE WALL STREET JOURNAL VISA USA AND SPRINT CORP PLAN TO OFFER A 25 DISCOUNT TO LONGDISTANCE TELEPHONE RATES CHARGED BY AMERICAN TELEPHONE & TELEGRAPH CO A SIGN THAT THE PHONE CREDIT CARD WARS ARE ESCALATING THOUGH GOOD NEWS FOR CONSUMERS THE MOVE PUTS PRESSURE ON THE ESTIMATED 8 BILLION CALLING CARD MARKET A JOINT ANNOUNCEMENT FROM VISA AND SPRINT IS EXPECTED TODAY THE PROGRAM WILL ALLOW VISA CARDHOLDERS OF PARTICIPATING BANKS TO ACCESS THE SPRINT SYSTEM FOR THEIR PERSONAL AND BUSINESS LONGDISTANCE PHONE CALLS CUSTOMERS WOULD RECEIVE 25 OFF STANDARD AT&T RATES FOR CALLING CALLS IF THEY ARE BILLED THROUGH VISA OFFICIALS FAMILIAR WITH THE NEW PRODUCT SAID IF THEY USE THE VISA PRODUCT BUT NEVERTHELESS WANT IT BILLED DIRECTLY TO SPRINT TO KEEP THEIR EXPENSES ON ONE BILL CUSTOMERS WOULD RECEIVE A 15 DISCOUNT SPRINT EXPECTS THE NEW SERVICE TO ATTRACT NEW CUSTOMERS BECAUSE OF SHARP DISCOUNTS EXISTING CUSTOMERS ARE ELIGIBLE BUT WOULD FIND IT MORE CUMBERSOME AS THEY WOULD RECEIVE SEPARATE BILLING STATEMENTS FOR THE NEW SERVICE FOR CUSTOMERS OVERSEAS THE CARD COULD BE USED FOR ANY COUNTRY IN WHICH VISA HAS ARRANGED AN AGREEMENT WITH OVERSEAS CARRIERS TO CARRY CALLS BETWEEN COUNTRIES OTHER THAN THE US VISA BASED IN SAN FRANCISCO AND SPRINT BASED IN WESTWOOD MO DECLINED TO COMMENT WITH INTEREST RATES ON CREDIT CARDS SETTLING DOWN AT LOWER RATES SOME CREDIT CARD ISSUERS ARE COMPETING WITH NEW PRODUCTS AND SERVICES TO ADD TO THE BASIC CARD GENERAL MOTORS CORP FOR INSTANCE HAS ADDED A TRAVEL SERVICES PROGRAM TO ITS FASTGROWING CREDIT CARD YOU HAVE TO COME UP WITH SOMETHING NEW AND IMPROVED OR SOMEONE ELSE WILL SAID SPENCER NILSON PUBLISHER OF THE NILSON REPORT A CREDIT CARD NEWSLETTER BUT SOME BANKS ARE CUTTING BACK ON LESS POPULAR PRODUCTS CHASE MANHATTAN CORP WILL NO LONGER PAY TO PROVIDE CUSTOMERS WITH COLLISION COVERAGE ON CAR RENTALS THE NEW SERVICE WILL COMPETE HEADON WITH AT&T'S UNIVERSAL CARD AND GENERAL CALLING CARD AS WELL AS MCI COMMUNICA TIONS CORP'S LINK WITH BOTH VISA AND MASTERCARD INTERNATIONAL LTD THE TIEIN WOULD APPARENTLY ALSO COMPETE WITH SPRINT'S EXISTING CALLING CARD WHILE MOST CREDIT AND CHARGE CARD COMPANIES HAVE PRODUCTS THAT ARE TIED INTO THE PHONE INDUSTRY THIS IS BELIEVED TO BE THE CHEAPEST FOR CONSUMERS CREDIT CARD ANALYSTS SAID VISA AND MASTERCARD HAVE AN EXISTING PRODUCT WITH MCI THAT DOES NOT OFFER THE SAME DISCOUNT ON LONGDISTANCE CALLS MCI'S RATES ARE 9 TO 19 OFF COMPARABLE AT&T CARD RATES ALTHOUGH A SPOKESMAN FOR MASTERCARD SAID THAT IT HAS JUST ROLLED OUT DISCOUNTS OF AS MUCH AS 26 OFF COMPARABLE AT&T RATES DEPENDING ON THE TIME AND DAY A CONSUMER IS CALLING AT&T'S UNIVERSAL CARD HAS 10 DISCOUNTS FOR LONGDISTANCE CALLS FOR MORE THAN HALF OF ITS CARDHOLDERS 9306090082 930609 HOLLYWOOD EXECUTIVES PLAN TO CURB VIOLENCE ON TV WASHINGTON HOLLYWOOD EXECUTIVES SAID THAT THEY WOULD TAKE ACTION AGAINST GRATUITOUS VIOLENCE ON TELEVISION BUT THAT TV CAN'T BE BLAMED EXCLUSIVELY FOR SOCIETY'S PROBLEMS TESTIFYING BEFORE THE SENATE JUDICIARY SUBCOMMITTEES ON THE CONSTITUTION AND JUVENILE JUSTICE EXECUTIVES ARGUED THAT PRIMETIME TV SHOWS ARE MUCH LESS VIOLENT THAN THEIR CRITICS CLAIM NONETHELESS THEY SAID THE FILM AND TV INDUSTRY HAS REACTED TO OTHER SOCIETAL CONCERNS INCLUDING REDUCING THE INSTANCES OF GRATUITOUS SMOKING DRUG USE AND ALCOHOL ABUSE AND PROMOTING USE OF AUTOMOBILE SEAT BELTS JACK VALENTI PRESIDENT OF THE MOTION PICTURE ASSOCIATION OF AMERICA TOLD THE SENATORS THAT HE WOULD HOLD A SERIES OF MEETINGS OVER THE NEXT SEVERAL MONTHS WITH REPRESENTATIVES OF THE DIRECTORS GUILD OF AMERICA THE WRITERS GUILD PROGRAM PRODUCERS AGENTS AND OTHERS TO DISCUSS TV VIOLENCE MR VALENTI SAID THAT THE INDUSTRY WOULD ADDRESS AMONG OTHER THINGS HOW IT CAN WITHOUT DISFIGURING FIRST AMENDMENT RIGHTS BE SO CREATIVELY RESOURCEFUL THAT WE ARE ABLE TO ATTRACT AND EXCITE AUDIENCES AND AT THE SAME TIME TRY TO PACIFY THOSE SCENES WHICH LAY CLAIM TO GRATUITOUS VIOLENCE 9306090081 930609 BUSINESS BRIEF UNITED WISCONSIN SERVICES INC MARKET CONDITIONS POSTPONE PLANNED OFFERING OF SHARES UNITED WISCONSIN SERVICES INC MILWAUKEE SAID IT WILL POSTPONE PLANS FOR AN OFFERING OF ADDITIONAL SHARES BECAUSE UNCERTAINTY SURROUNDING THE GOVERNMENT'S PLANS TO REFORM HEALTH CARE HAS WEAKENED MARKET CONDITIONS THE PROVIDER OF MANAGED HEALTHCARE SERVICES HAD SAID IN MARCH THAT IT WOULD OFFER ONE MILLION NEW SHARES AND THAT CERTAIN OTHER HOLDERS WOULD SELL A TOTAL OF 13 MILLION EXISTING SHARES UNITED WISCONSIN HAS ABOUT 111 MILLION COMMON SHARES OUTSTANDING YESTERDAY THE COMPANY ALSO SAID IT PLANS TO FILE WITH THE SECURITIES AND EXCHANGE COMMISSION A REGISTRATION STATEMENT COVERING ABOUT 40 MILLION OF SUBORDINATED DEBT SECURITIES WHICH IT PLANS TO OFFER EARLY NEXT MONTH 9306090080 930609 INTERNATIONAL BRIEF HONDA MOTOR CO CAR MAKER TO SELL VEHICLES MADE BY ROVER IN JAPAN HONDA MOTOR CO AGREED TO IMPORT FOURWHEELDRIVE VEHICLES MADE BY ROVER GROUP LTD OF BRITAIN FOR SALE IN JAPAN UNDER THE HONDA BRAND NAME HONDA SAID IT EXPECTS TO SELL ABOUT 1000 VEHICLES DURING 1994 THE FIRST YEAR OF THE PACT HONDA'S BRAND NAME FOR THE VEHICLE WILL BE CROSSROAD A SPOKESMAN SAID HONDA HASN'T SET A SALES PRICE THIS IS THE FIRST TIME THE TOKYOBASED COMPANY WILL SELL ROVERMADE VEHICLES IN THE JAPANESE MARKET HONDA SAID ITS RELATIONSHIP WITH ROVER DATES TO 1979 SINCE 1990 THE COMPANIES HAVE HAD AN EQUITY RELATIONSHIP WITH HONDA OWNING 20 OF ROVER GROUP AND ROVER OWNING 20 OF HONDA OF THE UK MFG LTD 9306090079 930609 BUSINESS BRIEF AMERICAN TRAVELLERS CORP INSURER REACHES SETTLEMENT CONCERNING CLASSACTION SUIT AMERICAN TRAVELLERS CORP BENSALEM PA SAID IT REACHED A SETTLEMENT CONCERNING A CLASSACTION SHAREHOLDER SUIT FILED AGAINST THE COMPANY IN MARCH 1992 UNDER THE SETTLEMENT THE PROVIDER OF LONGTERM HEALTHCARE INSURANCE WILL PAY MEMBERS OF THE CLASS 15 MILLION OF WHICH 1 MILLION WILL BE PAID BY INSURANCE THE COMPANY SAID THE SETTLEMENT WOULD HAVE NO MATERIAL EFFECT ON ITS OPERATIONS THE AGREEMENT REQUIRES COURT APPROVAL THE SUIT FILED IN FEDERAL COURT IN PHILADELPHIA APPARENTLY STEMMED FROM THE COMPANY'S RESTATEMENT OF EARNINGS IN 1991'S SECOND AND THIRD QUARTERS TO REFLECT CERTAIN COSTS RELATED TO ACQUISITIONS THE COMPANY MAINTAINED THE SUIT WAS WITHOUT MERIT BUT IT DECIDED TO SETTLE IN ORDER TO AVOID INTERNAL DISTRACTIONS AND COSTS ASSOCIATED WITH LITIGATION 9306090078 930609 BUSINESS BRIEF PHILIP MORRIS COS KRAFT GENERAL FOODS UNIT PLANS JOINT VENTURE IN CHINA KRAFT GENERAL FOODS INTERNATIONAL A UNIT OF PHILIP MORRIS COS SIGNED A JOINT VENTURE AGREEMENT WITH BEIJING AGRICULTURE INDUSTRY & COMMERCE GENERAL CORP TO MAKE DAIRY PRODUCTS PHILIP MORRIS SAID THE JOINT VENTURE BEIJING KRAFT FOOD CORP WILL MANUFACTURE AND MARKET A WIDE RANGE OF VALUEADDED DAIRY PRODUCTS SUCH AS ICE CREAM AND YOGURT KRAFT ALREADY HAS TWO JOINT VENTURES IN CHINA ONE WITH GUANGTONG FOOD CO MAKING MAXWELL HOUSE COFFEE IN GUANGZHOU AND ONE WITH TIANMEI FOOD CO PRODUCING TANG POWDERED BEVERAGES IN TIANJIN BEIJING AGRICULTURE INDUSTRY & COMMERCE GENERAL IS A MULTIPRODUCTION DAIRY OPERATION PHILIP MORRIS SAID 9306090077 930609 SHAKY STATISTIC NUMBER OF UNINSURED STIRS MUCH CONFUSION IN HEALTHCARE DEBATE IT IGNORES THE UNDERCOVERED AND EXAGGERATES WOES OF SOME LACKING A POLICY WHY A MOTHER IS SO WORRIED BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL THE QUALITY OF A COUNTRY'S HEALTHCARE SYSTEM IS USUALLY JUDGED BY SUCH STATISTICS AS LIFE EXPECTANCY AND INFANTMORTALITY RATES BUT THE DEBATE OVER HEALTHCARE REFORM HAS BEEN DOMINATED BY ANOTHER STATISTIC THE NUMBER OF PEOPLE UNINSURED THAT FIGURE 37 MILLION COMES UP IN EDITORIALS TELEVISION INTERVIEWS AND PRESIDENTIAL SPEECHES PUSHING REFORM BEFORE A LABOR GROUP IN APRIL PRESIDENT CLINTON CITED THE HUGE SUMS SPENT ON HEALTH CARE VS THE NUMBER LEFT UNINSURED WE'RE SPENDING 15 OF OUR NATIONAL INCOME ON HEALTH CARE WITH 37 MILLION PEOPLE UNINSURED HE SAID BUT WHAT DOES THE 37 MILLION FIGURE WHICH COMES FROM THE CENSUS BUREAU REALLY MEASURE DOES THE NEED TO REDUCE IT JUSTIFY A COMPLETE OVERHAUL OF HEALTH CARE WOULD A TARGETED APPROACH BE BETTER A LOOK BEHIND THE STATISTIC SHOWS THAT THE CRISIS OF THE UNINSURED IS BOTH BIGGER AND SMALLER THAN THE FIGURE INDICATES BIGGER BECAUSE IT FAILS TO COUNT PEOPLE WHO HAVE INSURANCE BUT NOT ENOUGH OF IT AND BECAUSE IT IGNORES JOB LOCK THE PARALYSIS OF PEOPLE AFRAID TO LEAVE A JOB FOR FEAR OF LOSING THEIR INSURANCE SMALLER BECAUSE MOST OF THE UNINSURED ARE YOUNG WITHOUT COVERAGE ONLY BRIEFLY AND USUALLY ABLE TO GET CARE IF NEEDED THOUGH OFTEN LATER THAN THEY SHOULD THE NUMBER GIVES THE IMPRESSION THAT WE HAE A BIGGER PROBLEM THAN WE DO SAYS MERRILL MATTHEWS OF THE NATIONAL CENTER FOR POLICY ANALYSIS A DALLAS THINK TANK WORKING WITH REPUBLICAN LAWMAKERS ON ALTERNATIVES TO THE CLINTON PLAN IT MAKES IT SOUND LIKE THERE ARE 37 MILLION WITHOUT HEALTH CARE OTHERS CONTEND THAT THE FIGURE GLOSSES OVER THE FAILURES OF THE HEALTHCARE SYSTEM THAT NUMBER HAS REALLY DISTORTED THE DEBATE SAYS RON POLLACK EXECUTIVE DIRECTOR OF FAMILIES USA A CONSUMERADVOCACY GROUP IT'S AN INADEQUATE FIGURE AND THERE'S A TREMENDOUS DANGER IN USING IT HE SAYS A BETTER NUMBER IS 57 MILLION THE TOTAL WITHOUT HEALTH INSURANCE AT SOME POINT DURING THE YEAR THE UNDERINSURED HE ADDS RUN INTO THE TENS OF MILLIONS LIVING WITHOUT INSURANCE ISN'T A MINOR MATTER ALTHOUGH AN UNINSURED PERSON WHO BREAKS AN ARM CAN GET HELP IN A HOSPITAL EMERGENCY ROOM SOMEONE NEEDING LONGTERM PERIODIC TREATMENT MIGHT NOT BE SO LUCKY STUDIES SHOW THAT PEOPLE WITH HYPERTENSION AND DIABETES FARE WORSE IF THEY LACK INSURANCE AND PARENTS WITHOUT INSURANCE ARE LESS LIKELY TO GET THEIR CHILDREN IMMUNIZED OR TREATED FOR STREP THROAT IN ADDITION COSTLIER HELP SUCH AS A HIP REPLACEMENT IS OFTEN DENIED THE UNINSURED MOREOVER LIVING WITHOUT HEALTH INSURANCE CAN BE A SOURCE OF HIGH ANXIETY PAUL SANTANIELLO LEFT HIS JOB AS A STOCKBROKER 15 MONTHS AGO UNABLE TO QUALIFY FOR LOWCOST GROUP HEALTH INSURANCE HE DROPPED HIS FAMILY'S HEALTH INSURANCE AFTER MONTHLY PREMIUMS JUMPED FROM 138 TO 675 IN JANUARY HIS WIFE DOROTHY WORRIES MOST FOR HER TWO DAUGHTERS AGE TWO AND FIVE I'M A WRECK OVER IT SHE SAYS I DON'T WANT TO GO OUT BECAUSE I'M AFRAID SOMETHING WILL HAPPEN ACCORDING TO HENRY AARON OF THE LIBERALLEANING BROOKINGS INSTITUTION THE FEAR OF FALLING INTO A SIMILAR SITUATION EXPLAINS WHY MOST PEOPLE SUPPORT A HEALTHCARE OVERHAUL THEY HEAR ABOUT THESE STORIES IN THE PAPER AND ON TELEVISION AND THEY TALK TO THEIR FRIENDS HE SAYS IF PEOPLE WEREN'T CONCERNED ABOUT IT HAPPENING TO THEM THERE WOULD BE LESS INTEREST IN REFORM ALTHOUGH THE CENSUS BUREAU IS SUPPOSED TO TALLY THE NUMBER UNINSURED FOR A FULL YEAR IT ACKNOWLEDGES THAT SOME RESPONDENTS MIGHT LACK INSURANCE FOR A SHORTER TIME RESEARCHERS SAY THE NUMBER REPRESENTS THE TOTAL WITHOUT COVERAGE AT THE TIME THEY ARE ASKED ONE THING ABOUT THE 37 MILLION UNINSURED IS CLEAR THEY REPRESENT GAPS IN THE INSURANCE SYSTEM THAT CAN SEEM ARBITRARY FOR EXAMPLE MOST EMPLOYEES OF LARGE COMPANIES GET EMPLOYERPROVIDED INSURANCE BUT MANY AT SMALL COMPANIES DON'T ALL 352 MILLION PEOPLE 65 OR OVER EVEN IF WEALTHY ARE COVERED BY MEDICARE AND THE VERY POOR ARE COVERED THROUGH MEDICAID WHICH INSURES 232 MILLION PEOPLE MOSTLY WOMEN AND CHILDREN ALONG WITH INCOME ANOTHER MAJOR DETERMINANT IN BEING UNINSURED IS AGE SOME 111 MILLION OF THE UNINSURED ARE AGE 18 TO 29 AND GENERALLY NEED LESS HEALTH CARE WHILE ONLY 26 MILLION ARE 55 OR OLDER YET ABOUT 95 MILLION ARE CHILDREN WHO ARE PERHAPS MOST IN NEED OF PREVENTIVE CARE ANOTHER ISSUE CONCERNS HOW LONG THE UNINSURED GO UNCOVERED NEARLY TWOTHIRDS OF THEM LACK INSURANCE LESS THAN A YEAR ONLY 15 TO 18 ARE OUT MORE THAN TWO YEARS ACCORDING TO KATHERINE SWARTZ AN ECONOMIST AT THE HARVARD SCHOOL OF PUBLIC HEALTH SO THE UNINSURED ARE AN EVERCHANGING RATHER THAN A CHRONICALLY NEGLECTED GROUP A LOT OF THESE PEOPLE ARE BETWEEN JOBS SAID WILLIAM NISKANEN OF THE CONSERVATIVE CATO INSTITUTE A WASHINGTON THINK TANK OR THEY HAVE JUST BEGUN ONE IN FACT 73 OF EMPLOYEES COVERED BY HEALTH INSURANCE WORK FOR COMPANIES THAT REQUIRE A WAITING PERIOD AN AVERAGE OF THREE MONTHS BEFORE EXTENDING SUCH BENEFITS TO A NEW HIRE ACCORDING TO THE HEALTH INSURANCE ASSOCIATION OF AMERICA THE DESIRE TO CIRCUMVENT COVERAGE GAPS MAKES FOR RIDICULOUS PROBLEMS LAST YEAR DOCTORS TOLD MARY BINGAMON A 38YEAROLD LIVING IN CUSHING OKLA THAT HER LUNG CAPACITY WAS SHRINKING CALLING HER SITUATION LIFETHREATENING THEY TOLD THE MOTHER OF FOUR TO BEGIN TAKING MEDICATION THAT COSTS NEARLY 500 A MONTH SHE HAD NO HEALTH INSURANCE BECAUSE GIVEN HER MEDICAL HISTORY SHE COULDN'T AFFORD IT MEDICAID SEEMED THE ONLY SOLUTION BUT BECAUSE HER HUSBAND PAUL MADE 2000 A MONTH AS A TRUCK DRIVER SHE COULD QUALIFY ONLY BY LEGALLY SEPARATING FROM HER HUSBAND SO HE IS LIVING WITH HIS SISTER IN ANOTHER PART OF TOWN AND MEDICAID PAYS FOR HIS WIFE'S PRESCRIPTIONS WELFARE FOOD STAMPS AND HIS CHILDSUPPORT CHECKS PAY HOUSEHOLD BILLS WE'VE BEEN HAPPILY MARRIED FOR 23 YEARS MRS BINGAMON SAYS IT WASN'T US WHO WANTED TO SEPARATE SUCH STORIES FILL THE RHETORIC OF HILLARY RODHAM CLINTON AND STIMULATE INTEREST IN HEALTHCARE REFORM SO DID THE RECENT RECESSION IN 1988 BEFORE IT BEGAN ABOUT 32 MILLION LACKED INSURANCE 159 OF AMERICANS UNDER AGE 65 THEN THE RECESSION COUPLED WITH SURGING HEALTHCARE COSTS SPARKED LAYOFFS AND CUTBACKS IN EMPLOYEE BENEFITS THE CURRENT FIGURE OF 37 MILLION NOW GROWING ABOUT 100000 A MONTH IS 167 OF THE NONELDERLY POPULATION ALTHOUGH MANY UNINSURED ARE PEOPLE SUCH AS MARY BINGAMON MANY OTHERS ARE YOUNG SINGLE PEOPLE WHO LACK INSURANCE OUT OF CHOICE THEIR STATUS HAS NOTHING TO DO WITH BEING DENIED COVERAGE AND EVERYTHING TO DO WITH PRIORITIES INSURANCE COSTS TOO MUCH AND THE RISKS SEEM TOLERABLE NOT THAT THE RISK ALWAYS PAYS OFF TIMOTHY MCCOY WHO MANAGES A CAFE IN MANHATTAN DECIDED TO DROP HIS 300AMONTH HEALTH INSURANCE WHEN HE WAS 29 AND GO WITHOUT IT IT WAS ALMOST EQUAL TO MY RENT AND IT SEEMED ABSURD HE SAYS FOR YEARS HE ALSO SKIPPED GOING TO THE DENTIST ONLY TO BE TOLD WHEN HE FINALLY DID GO THAT HE NEEDED ROOTCANAL WORK AND A FEW FILLINGS HE PAID THE 3000 BILL HIMSELF THEN HIS BACK BEGAN TO HURT SO MUCH THAT HE QUIT HIS JOB A DOCTOR TOLD HIM HE NEEDED SURGERY BUT BECAUSE HE HAD NO WAY OF PAYING HE TRIED A CHIROPRACTOR TO NO AVAIL FINALLY OUT OF DESPERATION HE CHECKED INTO A HOSPITAL EMERGENCY ROOM HE ULTIMATELY HAD AN OPERATION FOR A HERNIATED DISK AND WAS SURPRISED THAT THE HOSPITAL ABSORBED THE 20000 COST MR MCCOY NOW 34 AND EARNING 30000 A YEAR IS STILL WITHOUT INSURANCE HE FINDS IT TOO EXPENSIVE IF I GOT A RAISE THEN IT WOULD BE A PRIORITY HE SAYS BY LAW HOSPITALS MUST AT LEAST STABILIZE ANYONE CHECKING INTO AN EMERGENCY ROOM ACCORDING TO THE AMERICAN HOSPITAL ASSOCIATION HOSPITALS ABSORB 10 BILLION A YEAR IN CARE FOR THE UNINSURED EVEN PEOPLE ONLY TEMPORARILY UNINSURED ARE AT RISK SAYS MS SWARTZ AT HARVARD SHE SAYS A BRIEF LOSS OF INSURANCE CAN CAUSE A PROBLEM BECAUSE IT CAN MEAN HAVING TO REAPPLY THE APPLICANT MIGHT REGAIN COVERAGE BUT NOT FOR A PREEXISTING CONDITION THE VERY AILMENT FOR WHICH THE APPLICANT MOST NEEDS COVERAGE PEOPLE CAN TECHNICALLY HAVE HEALTH INSURANCE BUT NOT FOR WHAT THEY NEED IT FOR SHE SAYS ALSO AT RISK ARE THE UNDERINSURED LLOYD ANSTEY 64 RETIRED THREE YEARS AGO ON 27000 A YEAR FROM INVESTMENTS HIS HEALTHINSURANCE COSTS 5400 A YEAR WITH A 5000 DEDUCTIBLE A HEARTATTACK SURVIVOR AND A DIABETIC HE SKIPS REGULAR CHECKUPS BECAUSE HE CAN'T AFFORD THEM IN A YEAR HE WILL BE OLD ENOUGH FOR MEDICARE SO I'LL SWEAT IT OUT HE SAYS MINNESOTA IS ONE OF THE FEW STATES TRYING TO COVER THE UNINSURED RATHER THAN TRYING TO PROVIDE FOR EVERYBODY IT TAKES THE DIVERSE COMPOSITION OF THE GROUP INTO ACCOUNT AND COVERS ONLY WHAT IT CONSIDERS THE NEEDIEST SEGMENTS WHEN THE PLAN CALLED MINNESOTACARE IS FULLY PHASED IN NEXT YEAR IT WILL INSURE ONLY PEOPLE EARNING LESS THAN 275 OF FEDERALLY DEFINED POVERTY 39360 FOR A FAMILY OF FOUR IN MINNESOTA BUT EXCLUDE THOSE WHO HAD HEALTH INSURANCE IN THE PRECEDING FOUR MONTHS AND BECAUSE PEOPLE MIGHT BE TEMPTED TO GIVE UP COMPANYSPONSORED INSURANCE TO GET POTENTIALLY MORE GENEROUS CARE FROM THE STATE THE PLAN EXCLUDES PEOPLE WHO HAD COMPANY COVERAGE IN THE PAST 18 MONTHS THE PLAN FUNDED BY A TAX ON HOSPITALS DOCTORS AND OTHER HEALTHCARE PROVIDERS IS EXPECTED TO COVER 180000 PEOPLE BY 1997 AT AN ANNUAL COST OF 337 MILLION BECAUSE MINNESOTA HAS ALREADY ADDRESSED THE CHOICES FACED BY THE ADMINISTRATION THE PLAN HAS CAUGHT THE EYE OF THE WHITE HOUSE HOWEVER THE ADMINISTRATION WOULD PREFER A MORE SWEEPING PROGRAM INSTEAD OF A TARGETED APPROACH OFFICIALS ARE DISCUSSING EXTENDING COVERAGE TO ALL 37 MILLION UNINSURED AS EARLY AS 1996 THE MONEY WOULD COME FROM TAX INCREASES AND SAVINGS DUE TO REINING IN MEDICAL SPENDING THE ADMINISTRATION WOULD CURB COSTS BY STEPPING UP COMPETITION AMONG INSURERS DOCTORS HOSPITALS AND DRUG COMPANIES THROUGH MANAGED COMPETITION SIDNEY WOLFE OF PUBLIC CITIZEN A CONSUMERADVOCACY GROUP ARGUES THAT THE UNINSURED MIGHT NEVER GET COVERED UNDER THE CLINTON PLAN BECAUSE THE SAVINGS UNDER MANAGED COMPETITION WOULD BE TOO SMALL DR WOLFE SAYS THE GOVERNMENT COULD GET THE SAVINGS IT SEEKS BY INTRODUCING A CANADIANSTYLE SYSTEM IN CANADA THE GOVERNMENT IS THE SOLE PAYER FOR HEALTH CARE ELIMINATING INSURANCE COMPANIES AND THE HIGH ADMINISTRATIVE COSTS AND USES ITS LEVERAGE TO EXTRACT BETTER DEALS FROM DOCTORS AND HOSPITALS CONSERVATIVES OBJECT TO BOTH THE CLINTON AND CANADIAN PLANS AS UNWORKABLE THE CATO INSTITUTE'S MR NISKANEN BELIEVES ALL BUT A SMALL SEGMENT OF THE 37 MILLION COULD BE COVERED BY MAKING INSURANCE CHEAPER HE SAYS A SIMPLE METHOD WOULD BE TO GIVE CONSUMERS RATHER THAN CORPORATIONS TAX BREAKS ON MEDICAL CARE THE VEHICLE WOULD BE MEDICAL IRAS CONTRIBUTIONS WOULD BE TAXDEDUCTIBLE AND COULD BE WITHDRAWN TO PAY FOR ROUTINE CARE COMPANIES COULD CONTINUE TO BUY THEIR WORKERS COVERAGE FOR CATASTROPHIC EVENTS THOSE WHO STILL CAN'T AFFORD INSURANCE COULD BE GIVEN VOUCHERS ENABLING THEM TO BUY COVERAGE JUST AS FOOD STAMPS ENABLE THE POOR TO BUY GROCERIES 9306090076 930609 CREDIT MARKETS IBM GETS WARM RECEPTION FOR 18 BILLION ISSUE BUT LOSS OF TOP RATING FORCES HIGHER YIELDS BY THOMAS T VOGEL JR AND LESLIE SCISM STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK INVESTORS SWEPT ASIDE CONCERNS ABOUT THE FUTURE OF INTERNATIONAL BUSINESS MACHINES YESTERDAY AS THEY SNAPPED UP 18 BILLION OF NONCALLABLE NEW NOTES AND BONDS SOLD BY THE COMPANY SCREAMINGLY CHEAP PRICED TO MOVE IS HOW ONE TRADER DESCRIBED THE DEAL THE IBM ISSUE WAS THE LARGEST INVESTMENTGRADE DOMESTIC CORPORATE BOND ISSUE EVER SAID MARK SIEGEL A MANAGING DIRECTOR AT MORGAN STANLEY BIG BLUE OFFERED 125 BILLION OF NONCALLABLE SEVENYEAR NOTES WITH A COUPON OF 6375 AT A PRICE OF 99693 TO YIELD 643 070 PERCENTAGE POINT ABOVE THE TREASURY SEVENYEAR NOTE THE COMPANY ALSO SOLD 550 MILLION OF NONCALLABLE 20YEAR DEBENTURES WITH A COUPON OF 750 AT 99284 TO YIELD 757 065 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND TOWARD THE LOWER END OF EXPECTATIONS LIKE OTHER CORPORATIONS YESTERDAY IBM WAS RUSHING TO TAKE ADVANTAGE OF LOW INTEREST RATES IN ADVANCE OF THE RELEASE OF GOVERNMENT INFLATION REPORTS WHICH SOME INVESTORS FEAR COULD RESULT IN A JUMP IN INTEREST RATES YESTERDAY CORPORATIONS SOLD ABOUT 3 BILLION OF NEW BONDS AS TREASURY YIELDS MOVED HIGHER THE YIELD OF THE BENCHMARK 30YEAR TREASURY BOND FOR EXAMPLE ROSE TO 691 FROM 687 ON MONDAY YIELDS FOR SHORTERTERM TREASURYS ROSE LESS WITH THE 10YEAR NOTE HITTING 608 BY DAY'S END UP FROM 606 ONE SYNDICATE OFFICIAL CALLED THE DEMAND FOR THE ISSUE A VERY POWERFUL STATEMENT BY THE MARKETPLACE REGARDING ITS CONFIDENCE IN THE IBM CORPORATION IN FACT UNDERWRITERS LED BY MORGAN STANLEY & CO INCREASED THE SIZE OF THE OFFERING LATE YESTERDAY FROM A PLANNED 15 BILLION BUT THAT DEMAND CAME AT A PRICE THE COMPANY HAD TO OFFER MUCH HIGHER YIELDS THAN IN THE PAST TO HELP BOND INVESTORS OVERCOME WORRIES ABOUT IBM'S SHRINKING STATURE IN THE COMPUTER INDUSTRY SEVERE FINANCIAL PROBLEMS IN THE PAST YEAR HAVE LED TO DOWNGRADES FROM CREDIT AGENCIES IN JANUARY STANDARD & POOR'S CORP PUSHED IBM FROM ITS COVETED PERCH OF A TRIPLEA CREDIT RATING TO DOUBLEAMINUS IN MARCH MOODY'S INVESTORS SERVICE INC KNOCKED IBM DOWN TO SINGLEA1 FROM DOUBLEA2 JUST EIGHT MONTHS AGO WHEN IBM VISITED THE CAPITAL MARKETS WITH A 165 BILLION ISSUE ITS TOPNOTCH CREDIT RATINGS ENSURED IT A WARM WELCOME AND A DECENT INTEREST RATE YESTERDAY IBM HAD TO OFFER YIELDS SIMILAR TO THOSE OF LOWERRATED COMPANIES IN ORDER TO ATTRACT SUCH STRONG INVESTOR DEMAND SOME INVESTORS WERE WORRIED THAT RATING AGENCIES COULD DOWNGRADE IBM AGAIN AND DEMANDED YIELDS TO REFLECT THAT POSSIBILITY TRADERS SAID IN OCTOBER BEFORE THE DOWNGRADES IBM SOLD 165 BILLION OF FIVEYEAR NOTES AND 10YEAR NOTES AT YIELD SPREADS OF 050 AND 055 PERCENTAGE POINT RESPECTIVELY OVER COMPARABLE TREASURYS AS OF YESTERDAY THE SAME NOTES WERE TRADING AT 0625 AND 067 PERCENTAGE POINT OVER COMPARABLE TREASURYS WHICH IS ABOUT 005 TO 010 PERCENTAGE POINT MORE THAN COMPARABLY RATED CORPORATE BONDS SAID TRADERS BY COMPARISON TEXACO INC RATED SINGLEAPLUS BY S&P AND SINGLEA1 BY MOODY'S HAS SEVERAL ISSUES TRADING AT 050 TO 055 PERCENTAGE POINT ABOVE COMPARABLE TREASURYS JESSE GREENE ASSISTANT TREASURER FOR IBM DISPUTED THAT THE COMPANY MADE CONCESSIONS TO GET THE DEAL DONE IT'S A FAIR REPRESENTATION OF THE PRICE HE SAID ESPECIALLY GIVEN THE SIZE OF THE DEAL AND THE SPEED WITH WHICH IT WAS DONE THE COMPUTER MAKER HAS A NEGATIVE RATING OUTLOOK ACCORDING TO NICHOLAS RICCIO A MANAGING DIRECTOR AT S&P I CAN UNDERSTAND WHY PEOPLE WOULD BE CAUTIOUS ON THE PRICING HE SAID IBM HAS MAINTAINED ITS DOUBLEA RATING LARGELY BECAUSE IT HAS AGGRESSIVELY CUT COSTS HE SAYS BUT THE COMPANY HAS HAD SUBPAR OPERATING PERFORMANCE OVER THE LAST COUPLE OF YEARS HE ADDS AND NEEDS TO GENERATE PROFITABILITY TO MAINTAIN ITS RATING BUT MOODY'S IS NOT NEARLY AS PESSIMISTIC AS S&P ABSENT A MAJOR EVENT THE OUTLOOK IS STABLE FOR IBM FOR THE NEXT FEW QUARTERS SAYS CRAIG FITT AN ASSISTANT VICE PRESIDENT AT MOODY'S PEOPLE ARE STILL TRYING TO FIGURE OUT HOW IBM IS GOING TO COMPETE IN THE COMPUTER INDUSTRY WITH THE MOVE TOWARD SMALL PCS GIVEN IBM'S HISTORICAL RELIANCE ON THE MAINFRAME BUSINESS SAID ROBERT AUWAERTER A VANGUARD GROUP VICE PRESIDENT WHO MANAGES A 3 BILLION CORPORATE BOND PORTFOLIO IT'S A QUESTION OF WHAT RATING THE COMPANY WILL HAVE TWO TO THREE YEARS DOWN THE LINE HE SAID DEMAND FOR THE SEVENYEAR NOTE WAS SO STRONG THAT THE COMPANY WAS ABLE TO INCREASE ITS SIZE BY 250 MILLION FROM A PLANNED 1 BILLION BUT EVEN WITH THE HIGHERTHANNORMAL YIELDS AND THE CORRESPONDING LOWER PRICES FOR IBM SOME INVESTORS FOUND THE ISSUE A BIT PRICEY BARBARA KENWORTHY A PORTFOLIO MANAGER AT DREYFUS CORP FOUND YESTERDAY'S OFFERING WAS NO BARGAIN COMPARED WITH IBM ISSUES OUTSTANDING OR EVEN SIMILARLY RATED ISSUES FROM OTHER CORPORATIONS SOME BIG INVESTORS PASSED ON THE ISSUE BECAUSE THEY CONSIDERED IT TOO PRICEY MICHAEL GRAY PORTFOLIO MANAGER AT FIDELITY INVESTMENTS NOTED IBM'S SPLIT CREDIT RATING FROM MOODY'S AND S&P HE SAID THAT YESTERDAY'S OFFERINGS WERE CHEAP FOR A COMPANY RATED DOUBLEAMINUS BY S&P BUT SINCE HE BELIEVES THE SINGLEA1 RATING FROM MOODY'S IS MORE APPROPRIATE FOR THE COMPANY THE OFFERING WAS NOT PARTICULARLY CHEAP A BURST OF LATE SELLING IN AN EXTREMELY THIN MARKET LEFT TREASURYS WITH MODERATE LOSSES YESTERDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED 1/2 POINT OR 5 FOR A BOND WITH 1000 FACE VALUE TO 102 19/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION OF THE PRICE ROSE TO 691 FROM 687 ON MONDAY OTHER TREASURY SECURITIES ENDED WITH SMALLER LOSSES THE 10YEAR NOTE FOR EXAMPLE DROPPED NEARLY 1/4 POINT TO 101 4/32 TO YIELD 608 COMPARED WITH 606 ON MONDAY THERE WAS NO SPECIFIC NEWS BEHIND THE AFTERNOON SELLOFF TRADERS SAID THEY NOTED THAT DECLINES AMOUNTED TO A REVERSAL OF THE SMALL GAINS POSTED MONDAY AND LEFT TREASURYS AT LEVELS SEEN IN THE WAKE OF FRIDAY'S SELLOFF THE MARKET STARTED OFF ON A FIRMER NOTE AND PROCEEDED TO WEAKEN UP A LOT DURING THE DAY NOTED JOEL KAZIS A MANAGING DIRECTOR AT UBS SECURITIES INC THE SELLING WAS BROAD BASED BUT NOT HEAVY MR KAZIS ADDED WITH MANY PLAYERS CONTENT TO REMAIN OUT OF THE MARKET AHEAD OF FRIDAY'S CRITICAL MAY PRODUCER PRICE INDEX REPORT AND TUESDAY'S EQUALLY IMPORTANT CONSUMER PRICE FIGURES TRADERS SAID THE LOSSES WERE PROBABLY SOMEWHAT EXAGGERATED BY THE THIN VOLUME THE INFLATION REPORTS ARE ESPECIALLY CRUCIAL FOR THE MARKETS ANALYSTS BELIEVE THAT IF THE DATA SHOW LARGERTHANEXPECTED INCREASES ESPECIALLY IN THE SOCALLED CORE RATE WHICH EXCLUDES THE VOLATILE FOOD AND ENERGY COMPONENTS THE FEDERAL RESERVE WILL HAVE TO RESPOND BY RAISING SHORTTERM INTEREST RATES FORECASTS CALL FOR BOTH INDEXES TO RISE 02 MUNICIPAL BONDS FINISHED UNCHANGED TO 1/4 POINT LOWER AFTER FOLLOWING TREASURYS IN CALM TRADING DECLINING ISSUES INCLUDED WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S SERIES A REVENUE REFUNDING BONDS FOR NUCLEAR PROJECT NO 2 THEY DROPPED 1/4 TO 96 5/8 YIELDING 601 LOS ANGELES COUNTY METROPOLITAN TRANSPORTATION AUTHORITY'S 5625 OF 2018 SERIES A REVENUE REFUNDING BONDS WERE DOWN 1/4 AT 97 3/4 YIELDING 576 ALTHOUGH MUNIS WEAKENED A BIT SELLING IS EXPECTED TO BE LIMITED FOR THE TIME BEING THAT'S LARGELY BECAUSE MASSIVE BOND CALLS ARE ANTICIPATED ON JULY 1 MAKING THIS A TIME FOR STOCKING UP ON MUNIS NOT UNLOADING SECURITIES MARKET PARTICIPANTS SAID IN THE PRIMARY MARKET THIS SESSION A BANK OF AMERICA GROUP WON THE UNIVERSITY OF CALIFORNIA REGENTS' 2549 MILLION HOUSING SYSTEM REVENUE BONDS WITH A BID SETTING THE TRUE INTEREST COST AT 55765 THE BONDS WHICH ARE INSURED BY THE MUNICIPAL BOND INVESTORS ASSURANCE CORP WERE GIVEN YIELDS THAT RANGE FROM 290 IN 1994 TO 565 IN 20112014 MORTGAGEBACKED ISSUES ENDED SLIGHTLY LOWER MIRRORING LOSSES POSTED BY TREASURYS IN THE ASSETBACKED MARKET MBNA NATIONAL BANK PRICED A 1 BILLION FLOATINGRATE CREDITCARD TRANSACTION THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP ALSO PARTICIPANTS AWAITED A 1 BILLION CREDITCARD ISSUE FROM FIRST DEPOSIT NATIONAL BANK NOW EXPECTED TO BE PRICED TODAY CURRENT COUPON SECURITIES FELL ABOUT 1/8 FOR JUNE DELIVERY GINNIE MAE 7 SECURITIES FINISHED DOWN 4/32 AT 100 14/32 FREDDIE MAC GOLD 7 SECURITIES WERE DOWN 3/32 AT 100 21/32 AND FANNIE MAE 7 SECURITIES WERE DOWN 3/32 AT 100 19/32 SELLING BY MORTGAGE BANKERS REMAINED LIGHT PARTICIPANTS SAY PASSTHROUGH TRADING WAS LIMITED WITH MOST ACTION COMING FROM TRADERS JOCKEYING POSITIONS TO ACCOMMODATE JUNE SETTLEMENT TRADING HOWEVER WAS HEAVY IN GINNIE MAE 9 SECURITIES WHICH ANALYSTS THINK HAVE STARTED TO PEAK IN PREPAYMENTS FEDERAL NATIONAL MORTGAGE ASSOCIATION ANNOUNCED A STRIPPED MORTGAGEBACKED ISSUE AN 800 MILLION OFFERING BACKED BY 7 1/2 SECURITIES AND UNDERWRITTEN BY KIDDER PEABODY & CO AND DONALDSON LUFKIN & JENRETTE SECURITIES CORP MBNA NATIONAL BANK'S ISSUE WAS PRICED AT PAR TO FLOAT 015 POINT ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE WITH A 12 CAP DEALERS WERE MARKETING THE SECURITIES TO FLOAT 015 TO 018 POINT ABOVE THE LIBOR MONEY STORE INC IS EXPECTED TO BE IN THE MARKET THIS WEEK WITH A FOURPART OFFERING OF HOME EQUITY LOANBACKED CERTIFICATES LED BY PRUDENTIAL SECURITIES INC ALSO EXPECTED IS AN OFFERING OF MANUFACTURING HOUSING CERTIFICATES FOR GREENTREE FINANCIAL CORP AND AN ISSUE OF HOME EQUITY CERTIFICATES FOR ALLIANCE FUNDING CO TERENCE DONNELLY CONTRIBUTED TO THIS COLUMN 9306090075 930609 MARKETING BRIEF BELLSOUTH CORP UNIT STARTS A SECOND TEST OF SERVICE WITH DOW JONES BELLSOUTH CORP'S CELLULAR TELEPHONE UNIT SAID IT BEGAN A SECOND TEST OF ITS PERSONAL INFO CLIPS NEWS AND INFORMATION SERVICE IN THREE FLORIDA MARKETS THE SERVICE USES INFORMATION SUPPLIED BY DOW JONES & CO PUBLISHER OF THE WALL STREET JOURNAL BARRON'S ELECTRONIC BUSINESS INFORMATION SERVICES AND COMMUNITY NEWSPAPERS CELLULAR PHONE SUBSCRIBERS GET A CUSTOMTAILORED PACKAGE OF NEWS STOCK QUOTES WEATHER AND TRAFFIC REPORTS DELIVERED TO A VOICEMAIL BOX BELLSOUTH BASED IN ATLANTA AND DOW JONES NEW YORK HAVE TESTED THE SYSTEM IN LOS ANGELES AND THE NEW SIXMONTH TEST WILL BE IN ORLANDO DAYTONA AND MELBOURNE FLA 9306090074 930609 US SETS TOUGH AGENDA FOR TRADE TALKS WITH JAPAN MONDALE CHOSEN FOR ENVOY BY BOB DAVIS AND CARLA ANNE ROBBINS STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION UNVEILED A BROAD GETTOUGH AGENDA FOR TRADE TALKS WITH JAPAN BUT DECIDED TO NAME FORMER VICE PRESIDENT WALTER MONDALE THE NEW AMBASSADOR TO JAPAN AS A WAY OF KEEPING TENSION BETWEEN THE TWO COUNTRIES FROM GETTING OUT OF HAND THE TWO MOVES ILLUSTRATE THE ATTENTION THE ADMINISTRATION IS GIVING TO SORT OUT ITS ECONOMIC RELATIONS WITH THE WORLD'S SECOND LARGEST ECONOMY THE US WANTS JAPAN TO AGREE TO A SERIES OF FIVE PARALLEL TALKS OVER EVERYTHING FROM COMPUTERS TO WOOD PRODUCTS BUT IT DOESN'T WANT TO PRESS JAPAN SO HARD THAT TOKYO REJECTS US DEMANDS THE APPOINTMENT OF A FORMER US VICE PRESIDENT AS AMBASSADOR UNDOUBTEDLY WILL APPEAL TO THE JAPANESE FINELYTUNED SENSE OF PRESTIGE ONE OF THE MOST SUCCESSFUL PREVIOUS AMERICAN ENVOYS TO JAPAN WAS MIKE MANSFIELD A FORMER SENATE MAJORITY LEADER THE CHOICE OF MR MONDALE HAD BEEN DELAYED FOR WEEKS AS THE PRESIDENT'S POLITICAL ADVISERS BATTLED WITH SOME KEY MEMBERS OF THE FOREIGN POLICY ESTABLISHMENT OVER WHO WOULD GET THE SENSITIVE POST MR MONDALE OR RICHARD C HOLBROOKE A FORMER ASSISTANT SECRETARY OF STATE FOR ASIA UNDER JIMMY CARTER AND NOW MANAGING DIRECTOR AT LEHMAN BROTHERS THE JAPANESE CLEARLY PREFERRED TO HAVE SOMEONE OF MR MONDALE'S STATURE RATHER THAN A HIGHRANKING BUREAUCRAT EVEN ONE WITH DIPLOMATIC EXPERIENCE IN ASIA INSTEAD MR HOLBROOKE NOW WILL BE NAMED TO ANOTHER IMPORTANT DIPLOMATIC POST AMBASSADOR TO GERMANY PEOPLE CLOSE TO THE DEBATE SAID SEPARATELY REGINALD BARTHOLOMEW SPECIAL ENVOY TO BOSNIA WILL BE NAMED AMBASSADOR TO ITALY WHILE MOST OF MR MONDALE'S SUPPORTERS WERE DRAWN FROM THE POLITICAL CAMP INCLUDING INFORMAL CLINTON ADVISER VERNON JORDAN AND PROMINENT DEMOCRATS ON CAPITOL HILL SECRETARY OF STATE WARREN CHRISTOPHER AND US TRADE REPRESENTATIVE MICKEY KANTOR ALSO BACKED HIS NOMINATION MR HOLBROOKE'S SUPPORTERS SOURCES SAY INCLUDED NATIONAL SECURITY ADVISER ANTHONY LAKE AND HIS ASSISTANT SAMUEL BERGER AND DEFENSE SECRETARY LES ASPIN AMONG OTHERS THE TUG OF WAR BETWEEN THE MONDALE AND HOLBROOKE CAMPS AS WELL AS THE PRESIDENT'S DELAY AND INDECISION HAS BEEN A SOURCE OF DISMAY AND EMBARRASSMENT IN WASHINGTON IT'S INCREDIBLE THAT THEY WOULD SUBJECT A FORMER VICE PRESIDENT TO THIS SORT OF THING SAID A LONGTIME DIPLOMAT WHO IS A MEMBER OF THE HOLBROOKE CAMP ON THE TRADE FRONT US NEGOTIATORS SAID THEY WANT TO PERSUADE JAPAN TO NEGOTIATE OVER THE FOLLOWING ISSUES GOVERNMENT PROCUREMENT COMPLIANCE WITH PRIOR AGREEMENTS REGULATION AND REGULATED INDUSTRIES TECHNOLOGY AND FOREIGN INVESTMENT AND AUTOMOTIVE AND AUTO PARTS INDUSTRIES THE US WOULD JUDGE JAPANESE PROGRESS TOWARD OPENING THOSE AREAS BY A VARIETY OF QUANTITATIVE MEASURES IN THE AREA OF COMPLIANCE THE US HAS PUT TOGETHER A LIST OF 27 PRIOR AGREEMENTS AND NEGOTIATIONS THAT DATE BACK TO 1980 AND COVER SUCH INDUSTRIES AS WOOD PRODUCTS SEMICONDUCTORS CONSTRUCTION PROJECTS TELECOMMUNICATIONS AND SATELLITES THE US WANTS TO REVIEW JAPAN'S PROGRESS TOWARD REACHING THE GOALS SET OUT IN THOSE AGREEMENTS ALTHOUGH THE US HAS CONCLUDED A NUMBER OF DEALS WITH JAPAN OVER HIGHTECH TRADE A US NEGOTIATOR NOTED REGRETFULLY THAT THE MOST SUCCESSFUL AGREEMENT TO DATE IS ONE IN WHICH JAPAN OPENED ITS CIGARETTE MARKET TO FOREIGNERS US EXPORTS ROSE FROM LESS THAN 100 MILLION IN 1985 TO ABOUT 13 BILLION IN 1990 ACCORDING TO AN ANALYSIS BY THE INSTITUTE FOR INTERNATIONAL ECONOMICS A WASHINGTON THINKTANK THAT GENERALLY SUPPORTS FREE TRADE ACCORDING TO US TRADE REPRESENTATIVE KANTOR THE US IS INVOLVED IN A FOURFRONT SQUEEZE ON JAPAN IN ADDITION TO THE COMING BILATERAL TALKS THE US SEPARATELY IS PRESSING JAPAN TO OPEN ITS CONSTRUCTION AND SUPERCOMPUTER INDUSTRIES REDUCE TARIFFS AND OPEN MARKETS IN SEPARATE WORLD TRADE NEGOTIATIONS AND AGREE TO STRENGTHEN A FLEDGLING ORGANIZATION CALLED THE ASIA PACIFIC ECONOMIC COOPERATION FORUM SOME OF THIS IS COOPERATIVE SOME OF IT COMPETITIVE MR KANTOR SAID THE PRESSURE ON JAPAN WILL PEAK IN JULY AT A TOKYO SUMMIT MEETING OF THE HEADS OF STATE OF SEVEN LARGE INDUSTRIAL COUNTRIES AT THAT MEETING THE US WANTS TO ANNOUNCE THAT IT AND JAPAN HAVE AGREED TO AN AGENDA FOR THE TRADE TALKS WHICH WOULD BEGIN SHORTLY THEREAFTER THE US ALSO HOPES FOR A BREAKTHROUGH ON THE WORLD TRADE NEGOTIATIONS AT THE SUMMIT MR MONDALE ISN'T EXPECTED TO ATTEND THE SUMMIT BECAUSE HE IS UNLIKELY TO BE CONFIRMED IN TIME 9306090073 930609 WORLD MARKETS TOKYO STOCK PRICES SKID ON RESURGENCE OF YEN AHEAD OF JAPANESE HOLIDAY LONDON SHARES SLIP A WALL STREET JOURNAL NEWS ROUNDUP A RESURGENT JAPANESE YEN PUSHED TOKYO STOCK PRICES DOWN SHARPLY AND BROADLY TUESDAY WHEN MANY INVESTORS CLOSED OUT POSITIONS AHEAD OF A HOLIDAY WEDNESDAY CLOSING THE MARKET FOR THE IMPERIAL WEDDING LONDON SHARES WERE MIXED TO LOWER IN DIRECTIONLESS TRADING WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10728 DOWN 035 REFLECTING DECREASES IN THE AMERICAS AND EUROPE AND IN ASIA/PACIFIC MARKETS SHIPBUILDING STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11072 UP 161 OR 148 WITH KEPPEL OF SINGAPORE POSTING A 31 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 12794 DOWN 366 OR 28 WITH NEWCREST MINING OF AUSTRALIA SLIDING 72 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH RETREATED 3805 POINTS MONDAY SKIDDED 26895 OR 13 TO 2057524 WHICH ALSO WAS THE INTRADAY LOW FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES LITTLE CHANGED FROM 3497 MILLION SHARES A DAY EARLIER LOSING ISSUES TROUNCED GAINING ISSUES 821238 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EDGED UP 015 POINT MONDAY GAVE UP 1682 OR 1 TO 165503 IN THE CURRENCY MARKETS THE YEN FIRMED SHARPLY AGAINST THE US DOLLAR REACHING A RECORD HIGH AND ON THE BOURSE SHARES RETREATED ACROSS THE BOARD MANY INVESTORS STAYED SIDELINED AND OTHERS DECIDED AGAINST LEAVING POSITIONS OPEN AHEAD OF THE WEDDING OF JAPANESE CROWN PRINCE NARUHITO AND A FORMER DIPLOMAT MASAKO OWADA AND THE FRIDAY SETTLEMENT OF CONTRACTS FOR JUNE FUTURES AND OPTIONS AND THE BANK OF JAPAN'S RELEASE OF ITS QUARTERLY SURVEY ON BUSINESS SENTIMENT PARTICIPANTS ALSO WERE NERVOUS BECAUSE OF CONTINUING RUMORS ABOUT CORPORATE FAILURES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX SLIPPED 04 POINT TO 28444 THE FT 30STOCK INDEX EDGED UP 03 POINT TO 22245 VOLUME WAS 5514 MILLION SHARES COMPARED WITH 4567 MILLION SHARES A DAY EARLIER WITHOUT ANY GUIDE FOR SENTIMENT MANY INVESTORS STAYED SIDELINED AWAITING LOWER GERMAN INTEREST RATES WHICH WOULD ALLOW BRITAIN TO REDUCE ITS BASE LENDING RATES THUS CUTTING BRITISH BUSINESSES' FINANCING COSTS AND MAKING STOCKS MORE ATTRACTIVE THAN FIXEDINCOME INVESTMENTS THE FT 100 INDEX IN THREE MONTHS HAS FALLEN 46 FROM ITS RECORD HIGH OF 29809 IN GENERAL BRITISH ECONOMIC DATA ALSO ARE CONFUSING INVESTORS WHO ARE WAITING FOR SUMMER DATA TO GET AN IDEA OF THE STRENGTH OF THE RECOVERY IN FRANKFURT STOCK PRICES CONTINUED TO EDGE HIGHER IN TRADING THAT BEGAN WELL BUT ENDED QUIETLY THE DAX 30STOCK ADDED 6 POINTS TO 166161 BRINGING THE TWODAY GAIN TO 2376 POINTS EARLY TRADING WAS MOVED BY ARBITRAGE BETWEEN THE DAX FUTURES CONTRACT AND THE UNDERLYING SHARES IN THE STOCK MARKET INSTITUTIONAL INVESTORS WERE MOVING SLOWLY BACK INTO THE BOURSE IN PARIS STOCKS RETREATED FROM A PERCEIVED TECHNICAL RESISTANCE LEVEL BUT STILL ENDED SLIGHTLY HIGHER ON SOLID VOLUME BOOSTED BY US INVESTORS THE CONFEDERATION NATIONALE DU PATRONAT FRANCAIS THE FRENCH BUSINESS LEADERS ASSOCIATION PAINTED A GRIM ECONOMIC PICTURE IN ITS ANNUAL ECONOMIC OVERVIEW SAYING BUSINESS ALREADY HARD HIT BY RECESSION IS GETTING ADDED BLOWS FROM HIGH INTEREST RATES AND EXCESSIVE RESTRAINTS ON HIRING AMONG OTHER FACTORS BUT THIS WEEK'S STOCK GAINS IN PARIS REFLECTED A RESURGENCE OF HOPE FOR ANOTHER FRENCH INTERESTRATE CUT AMSTERDAM'S STRONG OPENING ERODED AND STOCKS WERE DRAGGED DOWN BY WALL STREET'S INITIAL SOFTNESS TO END LITTLE CHANGED IN MADRID THE MARKET COULDN'T SHRUG OFF DISAPPOINTMENT ABOUT THE SOCIALISTS' REELECTION VICTORY IN SPANISH GENERAL ELECTIONS LAST WEEKEND AND STOCKS CONTINUED TO FALL PARTLY ON A PERCEPTION THAT THE GOVERNMENT WILL BE SLOW TO CUT INTEREST RATES IN STOCKHOLM EQUITIES FELL SHARPLY PARTLY BECAUSE OF THE STRONGER SWEDISH KRONA CURRENCY IN ZURICH AFTER THE PREVIOUS SESSION'S ADVANCE PRICES CONSOLIDATED FINISHING MIXED TO LOWER AMID BARGAINHUNTING BY SWISS INSTITUTIONS AND LIGHT PROFITTAKING BY SOME FOREIGN INVESTORS IN SYDNEY STOCKS FELL PULLED DOWN BY WEAKNESS IN GOLD SHARES HONG KONG EQUITIES ROSE SHARPLY IN A TECHNICAL REBOUND AFTER SLIPPAGE IN THREE OF THE FOUR PREVIOUS SESSIONS SINGAPORE PRICES RECOVERED FROM EARLY WEAKNESS TO FINISH HIGHER THOUGH THE MARKET REMAINED IN A BROAD CONSOLIDATION TAIPEI STOCKS FELL BROADLY IN MODERATE TRADING WITH NO LETUP IN SELLING PRESSURE PARTLY REFLECTING INVESTORS' DISAPPOINTMENT ABOUT AN ECONOMYBOOSTING PROPOSAL MONDAY BY THE TAIWAN GOVERNMENT SEOUL PRICES CLIMBED AS SOME LARGE MANUFACTURING ISSUES GAINED ON A LATE WAVE OF BARGAINHUNTING THAT MOVED AWAY FROM BANKING AND SECURITIES STOCKS AMONG CORPORATE DEVELOPMENTS IN LONDON SIMS FOOD GROUP PLUNGED 53 PENCE OR 29 TO 129 PENCE 196 AFTER IT WARNED SHAREHOLDERS THAT IT EXPECTED TO POST PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 OF 6 MILLION 91 MILLION DOWN 35 FROM A YEAR EARLIER AND 20 FROM ANALYSTS' FORECASTS IT CITED IN PART RECORDHIGH PRICES FOR RAW MATERIALS SIMS WILL RECOMMEND A FULLYEAR DIVIDEND OF 75 PENCE A SHARE DOWN 33 MARKET EXPECTATIONS WERE FOR PRETAX PROFIT OF 75 MILLION AND A DIVIDEND OF 113 PENCE A SHARE IN PARIS RHONEPOULENC RORER SLUMPED 6 FRENCH FRANCS OR 11 TO 547 FRANCS 10016 THE PHARMACEUTICAL COMPANY UNVEILED RESTRUCTURING PLANS AND LITIGATION PROVISIONS WHICH WILL RESULT IN A ONETIME PRETAX CHARGE OF 77 MILLION IN THE SECOND QUARTER THE REVAMP OF MANUFACTURING AND MARKETING OPERATIONS MAINLY IN EUROPE REFLECTS GOVERNMENT LIMITS ON DRUGS THE LITIGATION RELATES TO A PATENT DISPUTE 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 9306090072 930609 BUSINESS BRIEF IMC FERTILIZER GROUP INC AUDITOR'S REPORT QUESTIONS OUTLOOK AS GOING CONCERN IMC FERTILIZER GROUP INC NORTHBROOK ILL SAID ITS INDEPENDENT AUDITOR REVISED ITS EARLIER REPORT ON THE COMPANY'S 1992 FINANCIAL STATEMENTS TO SAY THAT IMC'S CONTINUING FINANCING PROBLEMS RAISE SUBSTANTIAL DOUBT ABOUT THE COMPANY'S ABILITY TO CONTINUE AS A GOING CONCERN TO REFLECT AUDITOR ERNST & YOUNG'S UPDATED OPINION IMC SAID IT AMENDED ITS 1992 10K REPORT TO THE SECURITIES AND EXCHANGE COMMISSION IT SIMILARLY CHANGED ITS 1992 FINANCIAL STATEMENTS ISSUED IN CONNECTION WITH ITS PLAN TO FORM A PHOSPHATE FERTILIZER JOINT VENTURE WITH FREEPORTMCMORAN RESOURCE PARTNERS LP OF NEW ORLEANS THE COMPANY SAID IT IS WORKING DILIGENTLY TO RESOLVE ITS FINANCING DIFFICULTIES PRIOR TO JUNE 30 INCLUDING AN EFFORT TO OBTAIN ABOUT 225 MILLION OF ADDITIONAL FINANCING IF IT SUCCEEDS IN THAT FINANCING EFFORT AND IN SOME RELATED DEBT MOVES IMC SAID ERNST & YOUNG'S RECENT REVISION TO ITS ORIGINAL OPINION WOULD REVERT TO THE CONVENTIONAL TREATMENT IT INITIALLY GAVE 9306090070 930609 INTERNATIONAL BRIEF CITIZEN WATCH CO PRETAX PROFIT DECLINED 10 FOR YEAR ENDED MARCH 31 CITING SLUGGISH WORLD ECONOMIES JAPAN'S CITIZEN WATCH CO REPORTED A 10 DROP IN CONSOLIDATED PRETAX PROFIT FOR THE FISCAL YEAR ENDED MARCH 31 TO 2601 BILLION YEN 2425 MILLION FROM 29 BILLION YEN IN THE YEAREARLIER PERIOD NET INCOME FELL 13 TO 1213 BILLION YEN FROM 1397 BILLION YEN ON A 1 DECLINE IN SALES TO 40828 BILLION YEN FROM 41236 BILLION YEN THE COMPANY SAID IN A STATEMENT THAT REVENUE AND PROFIT DROPPED ON THE BACK OF WEAKERTHANANTICIPATED SALES OF WRISTWATCHES AND JEWELRY IT CITED WEAK ECONOMIES IN JAPAN AND EUROPE BUT NOTED A SLIGHT IMPROVEMENT IN THE US FOR THE CURRENT FISCAL YEAR ENDING MARCH 31 1994 THE COMPANY FORECASTS A 39 DECLINE IN PRETAX PROFIT TO 25 BILLION YEN ON A 2 DECLINE IN SALES 9306090069 930609 RULE OF LAW PRAY IN PEACE BY JAY ALAN SEKULOW IT WAS 1969 THE NATION HAD ALREADY BEEN BLOODIED BY THE ANTIWAR PROTESTS MOST NOTABLY THE RIOTS AT THE 1968 DEMOCRATIC NATIONAL CONVENTION THE CONTROVERSY OVER THE VIETNAM WAR WAS STILL RAGING IN THE STREETS AND ON THE CAMPUSES OF AMERICA AND HAD REACHED INTO OUR PUBLIC HIGH SCHOOLS YET THE SUPREME COURT RULED IN TINKER V DES MOINES THAT STUDENT EXPRESSION AGAINST THE VIETNAM WAR COULD NOT BE QUASHED IN PUBLIC HIGH SCHOOLS THE COURT RULED THAT NEITHER STUDENTS NOR TEACHERS SHED THEIR CONSTITUTIONAL RIGHTS OF FREEDOM OF SPEECH OR EXPRESSION AT THE SCHOOLHOUSE GATE IN 1969 IT WAS THE VIETNAM WAR NOW 24 YEARS LATER THERE'S A NEW STUDENT PROTEST MOVEMENT ABLAZE IN OUR PUBLIC SCHOOLS THIS TIME THE PROTEST IS NOT OVER THE CENSORSHIP OF A POLITICAL MESSAGE RATHER IT IS OVER THE CENSORSHIP OF A SPIRITUAL MESSAGE PRAYER THERE IS TREMENDOUS SUPPORT FOR GRADUATION PRAYER IN THIS COUNTRY IN RECENT WEEKS STUDENTS HAVE WALKED OUT OF SCHOOL IN VIRGINIA PROTESTING A SCHOOL BOARD'S DECISION NOT TO ALLOW STUDENTINITIATED PRAYER ONE YOUNG WOMAN IN GEORGIA INVOKED GOD IN HER SPEECH LAST WEEKEND AT A GRADUATION CEREMONY AGAINST THE ADVICE OF A SCHOOL BOARD ATTORNEY ON MONDAY THE SUPREME COURT AGAIN DECIDED IN FAVOR OF FREE SPEECH IN TWO IMPORTANT CASES BY DECIDING NOT TO HEAR JONES V CLEAR CREEK IN WHICH AN APPEALS COURT PERMITTED A STUDENTLED PRAYER IN A HOUSTONAREA SCHOOL THE COURT CLEARED THE WAY FOR STUDENTLED AND STUDENTINITIATED PRAYER AT GRADUATIONS NATIONWIDE THE COURT ALLOWED THE RELIGIOUS SPEAKER EQUAL STATUS WITH THE POLITICAL SPEAKER THIS EQUAL ACCESS TO THE MARKETPLACE OF IDEAS FOR THE RELIGIOUS SPEAKER IS CERTAINLY CONSTITUTIONAL AND IS LIKELY TO TROUBLE ORGANIZATIONS SUCH AS THE AMERICAN CIVIL LIBERTIES UNION THE ACLU HAS ACCUSED THE AMERICAN CENTER FOR LAW AND JUSTICE FOR WHICH I WORK OF LAUNCHING A CAMPAIGN OF MISINFORMATION AND DELIBERATELY MISCHARACTERIZING THE ISSUE AS A FREESPEECH ISSUE BUT IT IS A FREESPEECH ISSUE STUDENTLED AND STUDENTINITIATED PRAYER IS PROTECTED FREE SPEECH PURE AND SIMPLE MY ORGANIZATION HAS SENT NEARLY 15000 SCHOOL BULLETINS TO PUBLIC SCHOOL ADMINISTRATORS NATIONWIDE TO EDUCATE THEM ABOUT THE CONSTITUTIONAL RIGHTS OF STUDENTS THE BULLETIN OUTLINED OUR LEGAL POSITION WHICH INCLUDES THE JONES CASE IN AN EFFORT TO REMOVE RELIGIOUS SPEECH FROM THE PUBLIC ARENA THE ACLU HAS GONE TO COURT IN SEVERAL STATES TO TRY TO STOP STUDENTINITIATED AND STUDENTLED PRAYER AT GRADUATION THOSE EFFORTS HAVE NOT WORKED IN IDAHO A FEDERAL JUDGE HELD THAT THE PRACTICE OF ALLOWING STUDENTS TO DETERMINE WHETHER OR NOT TO INCLUDE PRAYER IN THEIR GRADUATION CEREMONIES DOES NOT VIOLATE THE ESTABLISHMENT CLAUSE OF THE UNITED STATES CONSTITUTION IN IOWA THE EIGHTH CIRCUIT COURT OF APPEALS REVERSED A LOWER COURT ORDER WHICH HAD PROHIBITED STUDENTLED PRAYER AT GRADUATION AND IN FLORIDA A JUDGE REFUSED TO ISSUE A RESTRAINING ORDER AGAINST STUDENTINITIATED PRAYER AT GRADUATION CEREMONIES IN JACKSONVILLE BY PERMITTING THE JONES DECISION TO STAND THE SUPREME COURT SEES THE DISTINCTION BETWEEN PRAYER BY STATE ACTORS WHICH IS PROHIBITED AS A RESULT OF LAST YEAR'S LEE V WEISMAN DECISION AND STUDENTLED STUDENTINITIATED PRAYER WHILE THE JONES DECISION IS TECHNICALLY VALID ONLY IN THE FIFTH CIRCUIT TEXAS LOUISIANA AND MISSISSIPPI IT IS A FREESPEECH ISSUE THAT CLEARLY APPLIES NATIONWIDE ADVOCATES OF FREE SPEECH RECEIVED AN ADDITIONAL BOOST FROM THE SUPREME COURT IN ITS UNANIMOUS DECISION MONDAY IN LAMB'S CHAPEL V CENTER MORICHES THE CASE CONCERNED A LONG ISLAND NY CHURCH THAT WANTED TO USE THE SCHOOL AFTER HOURS TO SHOW FILMS ON FAMILY VALUES THE COURT'S DECISION WAS STRAIGHTFORWARD UNDER THE FIRST AMENDMENT A SCHOOL DISTRICT CANNOT DISCRIMINATE AGAINST A RELIGIOUS INSTITUTION IF IT PERMITS SECULAR GROUPS TO USE SCHOOL FACILITIES IT MUST TREAT RELIGIOUS GROUPS EQUALLY THE ACLU SUPPORTED THIS POSITION THE SCHOOL DISTRICT ARGUED THAT ITS POLICY OF REFUSING TO ALLOW RELIGIOUS GROUPS ACCESS TO SCHOOL FACILITIES WAS VIEWPOINT NEUTRAL THE COURT DISMISSED THIS PROPOSITION NOTING THAT THE FACT THAT ALL RELIGIOUS GROUPS HAVE BEEN DENIED ACCESS TO SCHOOL PROPERTY DOES NOT JUSTIFY RELIGIOUS DISCRIMINATION SPECIFICALLY THE COURT STATED THE PRINCIPLE THAT HAD EMERGED FROM OUR CASE IS THAT THE FIRST AMENDMENT FORBIDS THE GOVERNMENT TO REGULATE SPEECH IN WAYS THAT FAVOR SOME VIEWPOINTS OR IDEAS AT THE EXPENSE OF OTHERS IN OTHER WORDS IF THE LOYAL ORDER OF ATHEISTS CAN RENT A SCHOOL AUDITORIUM A CHRISTIAN CHURCH SHOULD BE ABLE TO AS WELL BOTH SUPREME COURT DECISIONS REPRESENT MAJOR VICTORIES FOR RELIGIOUS FREEDOM THEY SHOULD SEND A LOUD MESSAGE TO THE NATION THAT RELIGIOUS SPEAKERS HAVE THE SAME ACCESS TO THE MARKETPLACE OF IDEAS IN AMERICA AS DO OTHER SPEAKERS RELIGIOUS SPEECH CANNOT AND SHOULD NOT BE EXCLUDED FROM THAT MARKETPLACE MR SEKULOW IS CHIEF COUNSEL OF THE AMERICAN CENTER FOR LAW AND JUSTICE A PUBLIC INTEREST LAW FIRM IN VIRGINIA BEACH VA HE PRESENTED ORAL ARGUMENTS BEFORE THE SUPREME COURT IN LAMB'S CHAPEL 9306090068 930609 BIG 3 TO STUDY MATERIALS FOR ENERGYEFFICIENT CARS DETROIT THE BIG THREE AUTO MAKER'S CONSORTIA FOR JOINT RESEARCH HAS FORMED A PARTNERSHIP TO RESEARCH MATERIAL THAT COULD BE USED TO PRODUCE LIGHTERWEIGHT AND MORE ENERGYEFFICIENT VEHICLES THIS MARKS THE 11TH PARTNERSHIP BETWEEN GENERAL MOTORS CORP FORD MOTOR CO AND CHRYSLER CORP OPERATING UNDER THE AUSPICES OF THE UNITED STATES COUNCIL FOR AUTOMOTIVE RESEARCH THE PARTNERSHIP WILL CONDUCT RESEARCH INTO MATERIALS SUCH AS POLYMER COMPOSITES ALUMINUM PLASTICS IRON STEEL CERAMICS AND ADVANCED METALS THE US AUTOMOTIVE MATERIALS PARTNERSHIP INCORPORATES WORK ALREADY IN PROGRESS UNDER USCAR'S AUTOMOTIVE COMPOSITES CONSORTIA WHICH IN APRIL DEVELOPED THE ORGANIZATION'S FIRST PATENT A MANUFACTURING PROCESS FOR COMPOSITES DEVELOPED JOINTLY BY THE BIG THREE AUTO MAKERS 9306090067 930609 BUSINESS BRIEF BAXTER INTERNATIONAL INC CHINESE VENTURE IS CREATED TO MAKE DIALYSIS SUPPLIES BAXTER INTERNATIONAL INC SAID IT SIGNED A 10 MILLION JOINT VENTURE WITH CHINESE PARTNERS THAT WILL SET UP A MANUFACTURING FACILITY IN CHINA THE COMPANY'S FIRST MAJOR ENTRY INTO THE CHINESE MARKET THE DEERFIELD ILL HOSPITALSUPPLY AND MEDICAL CONCERN SAID IT WILL OPEN A 35000SQUAREFOOT PLANT NEAR GUANGZHOU IN SOUTHERN CHINA THAT WILL EMPLOY 100 ITS PRODUCTS ARE EXPECTED TO BE SOLD IN BOTH CHINA AND HONG KONG THE FACILITY WILL PRODUCE FLUIDS AND DISPOSABLE SUPPLIES FOR A PORTABLE FORM OF KIDNEY TREATMENT KNOWN AS AMBULATORY PERITONEAL DIALYSIS IN WHICH A PATIENT RECEIVES FLUIDS THROUGH A CATHETER IMPLANTED IN THE ABDOMEN THE JOINT VENTURE WILL BE 75 OWNED BY BAXTER AND 25 OWNED BY GUANGZHOU PHARMACEUTICAL CONSTRUCTION DEVELOPMENT CORP AND GUANGZHOU ECONOMIC & TECHNOLOGICAL DEVELOPMENT ZONE INDUSTRIAL DEVELOPMENT CORP CONSTRUCTION IS TO BEGIN THIS MONTH 9306090066 930609 EXSALESMAN IS SENTENCED FOR LIFE FOR SUDAFED CRIME SEATTLE AP A FORMER INSURANCE SALESMAN WAS SENTENCED TODAY TO LIFE IN PRISON WITHOUT PAROLE FOR THE SUDAFEDTAMPERING DEATHS OF TWO PEOPLE AND FOR TRYING TO POISON HIS WIFE FOR 700000 IN INSURANCE MONEY JOSEPH MELING 31 YEARS OLD ALSO WAS ORDERED BY US DISTRICT JUDGE BARBARA ROTHSTEIN TO PAY 35 MILLION RESTITUTION TO SUDAFED'S MANUFACTURER WELLCOME PLC'S BURROUGHS WELLCOME CO RESEARCH TRIANGLE PARK NC AND TO OTHER CLAIMANTS IF HE GETS PAID FOR TELLING HIS STORY A JURY IN APRIL CONVICTED MR MELING OF FATAL PRODUCTTAMPERING WHICH CARRIES A MAXIMUM LIFE IN PRISON AS WELL AS PERJURY AND INSURANCE FRAUD MR MELING TOLD THE COURT I'M INNOCENT OF THE CRIMES OF WHICH I'VE BEEN CONVICTED MR MELING'S ATTORNEY CYRUS VANCE JR SAID HE WOULD APPEAL THE CONVICTION PROSECUTORS SAID MR MELING TRIED TO KILL HIS WIFE WITH A CYANIDEFILLED CAPSULE HE PLACED IN A PACKAGE OF THE DECONGESTANT SUDAFED HE PUT SIMILAR CAPSULES IN FIVE OTHER SUDAFED PACKAGES ON STORE SHELVES TO DIVERT SUSPICION FROM HIMSELF THE COURT WAS TOLD MRS MELING SURVIVED THE POISONING BUT BOTH KATHLEEN DANEKER 40 OF TACOMA WASH AND STAN MCWHORTER 40 OF LACEY WASH DIED 9306090065 930609 BUSINESS BRIEF TELEMUNDO GROUP INC GROUP SEEKS TO FORCE FIRM INTO CHAPTER 11 PROCEEDINGS A BONDHOLDER GROUP FOR THE SPANISHLANGUAGE NETWORK TELEMUNDO GROUP INC SAID IT FILED A PETITION IN US BANKRUPTCY COURT TO FORCE THE COMPANY INTO CHAPTER 11 PROCEEDINGS ROTHSCHILD INC A FINANCIAL ADVISER FOR THE BONDHOLDER GROUP SAID FILING OF THE PETITION STOPS ACCRUAL OF INTEREST ON 283 MILLION IN PRINCIPAL OF TELEMUNDO'S UNSECURED DEBT THE NEW YORK COMPANY HAS MORE THAN 300 MILLION IN DEBT OUTSTANDING SAID WILBUR L ROSS JR OF ROTHSCHILD MR ROSS SAID JUNIOR BONDHOLDERS DECIDED TO FILE THE PETITION TO STOP THE INTEREST CLOCK FROM RUNNING IF THE COMPANY'S REORGANIZATION STRETCHES OVER A LONG PERIOD SENIOR BONDHOLDERS STAND TO REAP THE LARGEST SHARE OF INTEREST PAYMENTS WHILE JUNIOR HOLDERS WOULD SEE THEIR PAYMENTS GREATLY DIMINISHED HE EXPLAINED RELIANCE GROUP HOLDINGS INC AN INSURANCE HOLDING COMPANY OWNS ABOUT A THIRD OF TELEMUNDO OFFICIALS OF RELIANCE OR TELEMUNDO COULDN'T BE REACHED FOR A COMMENT 9306090064 930609 INSIDER TRADING SPOTLIGHT BASED ON ACTUAL TRANSACTION DATES IN REPORTS RECEIVED THROUGH FRIDAY WHICH MUST BE REP ORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER RANKED BY THE NET CHANGE IN SHARES HELD BY THOSE INSIDERS WHO BOUGHT OR SOLD DURING THE LAST 12 WEEKS EXPRESSED AS A PERCENTAGE CHANGE OF ONLY THEIR HOLDINGS AT THE START OF THE PERIOD REFLECTS COMPANIES FOR WHICH FILINGS MADE LAST WEEK SHOWED SOME INSIDER ACTIVITY DURING THE LATEST 12 WEEKS EXCLUDED COMPANIES WITH TOTAL TRADES VALUED UNDER 75000 OPTIONRELATED SALES COMPANIES WITH FEWER THAN THREE BUYERS OR SELLERS OR FEWER BUYERS OR SELLERS THAN THE HISTORICAL AVERAGE FOR THE PERIOD 9306090063 930609 MARKETING & MEDIA GRENADIER PLANS TO LAUNCH A NATIONAL GOLF MAGAZINE NEW YORK AN INDEPENDENT PUBLISHER WILL LAUNCH THIS FALL A NATIONAL GOLF MAGAZINE CALLED LINKS TO FOCUS ON WHERE GOLFERS CAN PLAY THE GAME INSTEAD OF TIPS ON LOWERING THEIR SCORES BILLED AS THE BEST OF GOLF LINKS WILL PREMIERE WITH A SEPTEMBER/OCTOBER ISSUE IN AUGUST THE MAGAZINE IS BEING FORMED BY COMBINING TWO EXISTING GOLF TITLES SOUTHERN LINKS AND WESTERN LINKS PUBLISHED BY GRENADIER ASSOCIATES LTD WHOSE CHAIRMAN IS JOHN R PURCELL SR HIS SON JOHN R PURCELL JR IS LINKS PUBLISHER GRENADIER DOESN'T PUBLISH ANY OTHER MAGAZINES BUT IT AND OTHER PRINCIPALS LED A 210 MILLION LEVERAGED BUYOUT OF DONNELLEY MARKETING INC A DIRECT MARKETING COMPANY IN 1991 BASED IN HILTON HEAD ISLAND SC LINKS MAGAZINE WILL BE UP AGAINST SEVERAL LARGECIRCULATION ESTABLISHED GOLF MAGAZINES SUCH AS NEW YORK TIMES CO'S GOLF DIGEST AND TIMES MIRROR CO'S GOLF THE PURCELLS LAUNCHED SOUTHERN LINKS IN 1988 AND WESTERN LINKS IN 1991 LINKS WILL CONTINUE TO PUBLISH REGIONAL AND EVEN SPECIAL DEMOGRAPHIC EDITIONS FOR ADVERTISERS AND READERS LINKS WILL BE FOR THE AVID GOLFER WHO WANTS TO KNOW WHERE TO PLAY NEXT FEATURING PHOTOGRAPHY AND COMMENTARY ON GOLF COURSES AND THEIR DESIGNS LINKS IS AIMING FOR AN AUDIENCE THAT IS MORE AFFLUENT THAN THOSE OF OTHER NATIONAL GOLF TITLES THE COMPANY SAID THAT BY EARLY NEXT YEAR LINKS WILL HAVE A TOTAL CIRCULATION OF ABOUT 250000 AND IT WILL PUBLISH EVERY OTHER MONTH 9306090062 930609 ROCKEFELLER REIT SAYS IT EXPECTS TO MAINTAIN 201 DIVIDEND FOR 1993 NEW YORK ROCKEFELLER CENTER PROPERTIES INC EXPECTS TO MAINTAIN ITS 1 ANNUAL DIVIDEND THIS YEAR BUT PROBABLY WILL CUT IT TO BETWEEN 70 CENTS AND 80 CENTS IN 1994 SAID EDWARD FONTAINE THE COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AT ITS ANNUAL MEETING YESTERDAY THE REAL ESTATE INVESTMENT TRUST OR REIT WHOSE PRINCIPAL ASSET IS A 13 BILLION MORTGAGE ON MANHATTAN'S ROCKEFELLER CENTER SLASHED ITS ANNUAL DIVIDEND BY 48 IN DECEMBER AND SAID IN APRIL THAT IT MAY NEED TO CUT IT ANOTHER 20 TO 30 THE COMPANY'S SHARES FELL 125 CENTS TO 725 IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY MR FONTAINE TOLD SEVERAL HUNDRED SHAREHOLDERS SOME EXPRESSING DISPLEASURE IN THE COMPANY'S PERFORMANCE THAT THE MANHATTAN REAL ESTATE MARKET CONTINUES TO DETERIORATE AND THAT LEASES ON 24 MILLION SQUARE FEET OF THE CENTER OR 38 OF ITS SPACE EXPIRE NEXT YEAR FIVE OF THE 14 LARGEST TENANTS WITH LEASES DUE TO EXPIRE INCLUDING SIMON & SCHUSTER CHADBOURNE & PARKE AND THE ASSOCIATED PRESS RENEWED THEIR LEASES THREE OTHERS ARE CLOSE TO COMPLETING RENEWAL NEGOTIATIONS HE SAID ROCKEFELLER CENTER IS OWNED BY THE ROCKEFELLER GROUP WHICH IS 80 OWNED BY THE JAPANESE REALESTATE CONGLOMERATE MITSUBISHI ESTATES IN AN APPRAISAL THIS YEAR THE COMPLEX WAS VALUED AT 12 BILLION 100 MILLION LESS THAN THE EXISTING MORTGAGE 9306090061 930609 BUSINESS BRIEF RHONEPOULENC RORER INC PRETAX CHARGE OF 77 MILLION TO BE TAKEN IN 2ND QUARTER RHONEPOULENC RORER INC ANNOUNCED RESTRUCTURING PLANS AND LITIGATION PROVISIONS THAT WILL RESULT IN A PRETAX CHARGE OF 77 MILLION IN THE SECOND QUARTER THE DRUG COMPANY IS A PUBLICLY TRADED VENTURE BETWEEN RHONEPOULENC SA OF FRANCE AND RORER INC OF THE US RHONEPOULENC RORER ALSO SAID IT COMPLETED PLANS FOR RESTRUCTURING OF SEVERAL OPERATIONS INCLUDING ITS MARKETING AND MANUFACTURING OPERATIONS IN ITS GERMAN AND ITALIAN PHARMACEUTICAL BUSINESSES THE CHANGES FOLLOW GOVERNMENT ACTIONS TO LIMIT PRESCRIPTION PHARMACEUTICAL VOLUME AND PRICES IN THESE MARKETS THE COMPANY SAID THE PROGRAMS ALSO INCLUDE A PLAN TO SHED A PORTION OF A MANUFACTURING FACILITY IN MONTS FRANCE BY THE END OF 1995 9306090060 930609 LEISURE & ARTS THEATER REVIVALS MUSICAL FARCE BY ED WILSON HARTFORD CONN GEORGE HERRINGBONE IS NOT YOUR ORDINARY SONG AND DANCE MAN FOR ONE THING HE IS ONLY 10 YEARS OLD FOR ANOTHER HIS BODY IS INHABITED NOT JUST BY HIMSELF BUT ALSO BY LOU A DECEASED 37YEAROLD EXVAUDEVILLE PERFORMER AS YOU MIGHT SURMISE HERRINGBONE THE SHOW IN WHICH GEORGE IS THE TITLE CHARACTER IS OFFBEAT IT IS IN FACT ONE OF THE MOST UNUSUAL MUSICALS OF MODERN TIMES FIRST WRITTEN AS A PLAY BY TOM CONE THE MUSIC AND LYRICS WERE ADDED BY WALTER EDGAR KENNON AND ELLEN FITZHUGH AFTER BRIEF RUNS IN THE EARLY 1980S AT A THEATER IN CHICAGO AND AT PLAYWRIGHTS HORIZONS IN NEW YORK IT VIRTUALLY DROPPED OUT OF SIGHT IN THIS COUNTRY ONE REASON IS THE DIFFICULTY IN CASTING THE PLAY ALL 10 PARTS ARE PLAYED BY ONE PERSON FORTUNATELY IN JOEL GREY THE HARTFORD STAGE COMPANY HAS FOUND THE RIGHT ACTOR AND IN GRACIELA DANIELE THE RIGHT DIRECTOR TO GIVE AUDIENCES A GOOD LOOK AT THIS ARRESTING PROVOCATIVE BUT QUITE ENTERTAINING PIECE THE TIME IS 1929 AND THE PLACE DEMOPOLIS ALA GEORGE'S FATHER ARTHUR IS A REDNECK AND HIS MOTHER A WOULDBE SOUTHERN BELLE THE TWO DECIDE THAT GEORGE WILL BE THEIR MEAL TICKET AND SO WHEN GEORGE IS ONLY EIGHT OR NINE YEARS OLD THEY ENROLL HIM IN THE DANCING CLASSES OF NATHAN MOSELY A FORMER VAUDEVILLIAN WHO PLAYED THE CHICKEN IN A CHICKENANDFROG ACT IN WHICH LOU PLAYED THE FROG WHEN GEORGE BEGINS DANCING ASTONISHINGLY HIS FEET TAKE ON A LIFE OF THEIR OWN AND IN THE SAME WAY THAT HIS FEET BECOME POSSESSED HIS BODY BECOMES POSSESSED BY THE SPIRIT OF THE DEAD LOU WITH LOU'S GHOST INSIDE HIM GEORGE BECOMES A PERFORMER AS WELL AS A DANCER SOON GEORGE'S FAMILY SETS OFF ACROSS THE COUNTRY SHOWCASING HIM ON THEIR WAY TOWARD HOLLYWOOD IT IS A STRANGE COMPLICATED STORY AND ONE OF THE DIFFICULTIES WITH HERRINGBONE IS THAT IT IS NOT ALWAYS EASY TO FOLLOW THIS COULD BE REMEDIED HOWEVER WITH A FEW ADDITIONAL TRANSITIONS AND EXPLANATIONS WHICH I THINK THE AUTHORS WOULD BE WELLADVISED TO MAKE THERE IS HOWEVER A GREAT DEAL THAT YIELDS PLEASURE IN ITS PRESENT FORM THE SONGS IN HERRINGBONE ARE NOT INTENDED TO BE BIG BRASSY NUMBERS INSTEAD THEY SPEAK TO THE SITUATION HOW GEORGE FOR INSTANCE IS FITTED WITH A SUIT THAT WILL HELP HIM BECOME A MAN AND HOW WHEN HE CHOOSES A SUIT MADE OF HERRINGBONE HE THEN DECIDES TO MAKE THAT HIS STAGE NAME THERE ARE ALSO A COUPLE OF SHOWSTOPPERS INCLUDING ONE IN WHICH GEORGE DESCRIBES THE DIFFERENCE BETWEEN A MAMA AND A MOTHER THE FORMER BEING DECIDEDLY MORE SEXY THAN THE LATTER GEORGE IS A VICTIM OF HIS OVERBEARING SELFCENTERED PARENTS AND OF THE DEMONIC LOU AND NOWHERE DOES THIS BECOME MORE APPARENT THAN IN A FRIGHTENING NUMBER IN WHICH LOU NO LONGER HAVING A BODY OF HIS OWN TRIES TO GET GEORGE TO GO TO BED WITH DOT A WOMAN OF THE EVENING DOT IS INTRIGUED WITH THIS DIMINUTIVE CREATURE AND HIS COMBINATION OF VOICES LOU'S TOUGHGUY TALK AND GEORGE'S LITTLE BOY INNOCENCE AS DOT AND LOU TRY TO GET TOGETHER THE TERRIFIED GEORGE IS LITERALLY CAUGHT IN BETWEEN MR GREY IS A NATURAL AS A HOOFER AND NOT SURPRISINGLY HE HANDLES THAT PART OF THE ASSIGNMENT WITH GREAT FLAIR BUT IN HERRINGBONE HE MUST ALSO PLAY 10 ROLES AND SERVE AS NARRATOR WITH THE HELP OF MS DANIELE'S DIRECTION HE MEETS THE CHALLENGE HEADON CHANGING VOICES AND POSTURE SWIFTLY AND WITH APLOMB AT THE END OF THE PLAY GEORGE BECOMES HIS OWN PERSON HE KNOWS HE CAN NEVER FULLY ESCAPE THE INFLUENCE OF HIS FAMILY AND GEORGE BUT HE THROWS OFF THE YOKE OF THEIR DOMINATION AND ASSERTS HIMSELF THIS TRANSITION LIKE EARLIER PLOT DEVELOPMENTS COULD ALSO BE MADE MUCH CLEARER BY THE AUTHORS EVEN SO HERRINGBONE REMAINS A DISTURBING INVENTIVE AND ULTIMATELY REWARDING PIECE DOWN THE ROAD FROM THE HARTFORD STAGE IN NEW HAVEN THE LONG WHARF THEATER IS MOUNTING A VINTAGE ALAN AYCKBOURN PLAY ABSURD PERSON SINGULAR WITH THE BENEFIT OF HINDSIGHT WE CAN DETECT IN THIS 20YEAROLD COMEDY THE SEEDS OF THE INCREASING DARKNESS AND COMPLEXITY OF MR AYCKBOURN'S LATER WORK ABSURD PERSON SINGULAR TAKES PLACE IN THE KITCHENS OF THREE DIFFERENT COUPLES ON THREE SUCCESSIVE CHRISTMAS EVES AT FIRST I WONDERED WHY DIRECTOR ARVIN BROWN CHOSE JUNE AS THE TIME TO SCHEDULE PLAYS SET AT CHRISTMAS THEN I SAW THAT THE INESCAPABLE MELANCHOLY OF THE PLAY IS BETTER OBSERVED FROM THE SAFE DISTANCE OF SUMMER ACT ONE TAKES PLACE IN THE KITCHEN OF JANE ANN MCDONOUGH AND SIDNEY JOHN ROTHMAN HE IS AN UPANDCOMING BUILDER AND SHE IS AN OVERLY FASTIDIOUS HOUSEWIFE WHOSE KITCHEN FLOOR IS CLEANER THAN THE OPERATING TABLE OF MOST HOSPITALS SIDNEY HAS INVITED GUESTS WHOM HE THINKS CAN GIVE HIM A BOOST UP THE LADDER OF SUCCESS RONALD PATRICK HORGAN A POSH BANKER AND HIS ALCOHOLIC WIFE MARION JOYCE EBERT AND GEOFFREY DOUG STENDER ANOTHER BUILDER AND HIS NEUROTIC WIFE EVA JULIE WHITE EACH ACT IS FURIOUSLY FARCICAL AND MR BROWN HAS ORCHESTRATED HIS DEFT CAST EXPERTLY TO GET THE MOST OUT OF THE COMEDY BUT THERE IS ALSO AN EVERPRESENT SERIOUS UNDERTONE ACT TWO FOR INSTANCE TAKES PLACE IN THE KITCHEN OF EVA AND GEOFFREY WHERE A DESPERATELY UNHAPPY EVA IS TRYING FRANTICALLY TO COMMIT SUICIDE SHE TRIES EVERYTHING IMPALING HERSELF ON A KNIFE SWALLOWING PILLS PUTTING HER HEAD IN THE OVEN AND HANGING HERSELF BUT EACH TIME SHE IS THWARTED THE LAUGHTER IS CONTINUOUS BUT IT IS LAUGHTER WITH AN EDGE EVA AFTER ALL IS MISERABLE AND WANTING TO END HER LIFE IS NO JOKE AT LEAST NOT TO HER ULTIMATELY THERE IS SOMETHING MECHANICAL ABOUT MOST FARCE AND ABSURD PERSON SINGULAR IS NO EXCEPTION BUT THAT IS A SMALL PRICE TO PAY FOR AN EVENING OF SHARP ENTERTAINMENT 9306090057 930609 SOUTH CHINA BOOM SHOWS SIGNS OF STRAIN BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THE TANDEM ECONOMIC BOOMS IN THIS COLONY AND NEARBY SOUTH CHINA HAVE SPAWNED WHAT A GROWING NUMBER OF ANALYSTS BELIEVE IS AN UNSUSTAINABLE FINANCIAL BUBBLE WEALTH ABOUNDS MUCH OF IT MADE ON PAPER IN SOARING STOCK AND PROPERTY MARKETS SOME IS SPENT MAKING MORE MONEY INVESTORS HAVE COME UP WITH NEARLY 10 BILLION THIS WEEK TO BID FOR SHARES IN A NEW STOCK OFFERING THAT IS LIKELY TO BE 100 TIMES OVERSUBSCRIBED OTHER WEALTH IS FRITTERED AWAY AT AFRIKAN A COFFEE SHOP IN CENTRAL HONG KONG DESSERTS ARE GARNISHED WITH GOLD LEAF MANY PEOPLE DRAW PARALLELS TO JAPAN'S NOWDEFLATED BUBBLE OF THE LATE 1980S THE COMPARISON A BANKER HERE SAYS SEEMED PARTICULARLY APT WHEN JAPAN'S AOKI CORP SHOWED UP THIS MONTH TRYING TO SELL ALL OR PART OF THE WESTIN HOTELS & RESORTS TO CASHRICH HONG KONG INVESTORS THE COMPANY BOUGHT THE UPSCALE CHAIN FOR 154 BILLION FIVE YEARS AGO DURING JAPAN'S FINANCIAL BOOM I THINK WE'VE MOVED INTO BUBBLE TERRITORY AND I THINK THERE'S A GROWING DANGER IT WILL BURST SAYS CHRIS SHERWELL REGIONAL STRATEGIST FOR SMITH NEW COURT FAR EAST LTD A SECURITIES FIRM THE ASSETPRICE BOOM IN HONG KONG AND NEIGHBORING SOUTH CHINA ALREADY IS BEGINNING TO SHOW SIGNS OF STRAIN STOCK PRICES IN THE BRITISH COLONY HAVE SOARED 317 THIS YEAR AS MEASURED BY THE HANG SENG STOCK INDEX WHICH NOW STANDS AT 725974 THOUGH THE INDICATOR TOUCHED A RECORD HIGH OF 744724 ON MAY 28 UP 351 FROM THE END OF LAST YEAR IT HAS SLID SINCE CHINA LAST WEEK ALLOWED ITS CURRENCY THE YUAN TO DEPRECIATE THAT MOVE SPARKED FEARS OF A DESTABILIZING ECONOMIC UPHEAVAL PROPERTY PRICES THOUGH REMAIN ASTRONOMICAL A SQUARE FOOT OF OFFICE SPACE IN CENTRAL HONG KONG NOW GOES FOR AT LEAST 1000 A THIRD MORE THAN LAST YEAR ACCORDING TO JONES LANG WOOTTON A PROPERTYCONSULTING FIRM IN NOMINALLY COMMUNIST SOUTH CHINA A 1000 SQUAREFOOT APARTMENT JUST ACROSS THE BORDER FROM HONG KONG SELLS FOR 130000 SUCH WORLDLY PROPERTY PRICES IN A COUNTRY WHERE NOMINAL PERCAPITA INCOME IS STILL AROUND 400 HAS CAUSED SOCIAL PROBLEMS IN LATE MARCH TWO VILLAGERS IN GUANGDONG PROVINCE NEAR HONG KONG WERE KILLED IN A LAND DISPUTE BETWEEN TWO VILLAGES TO BE SURE MANY ANALYSTS STILL THINK THE SOUTH CHINA REGION'S ASSET VALUES ARE SUSTAINABLE THEY SAY HONG KONG STOCK PRICES FOR INSTANCE ARE INTERNATIONALLY COMPETITIVE AT AROUND 13 TIMES PERSHARE EARNINGS BUT MORE THAN A THIRD OF CORPORATE EARNINGS BY MOST ESTIMATES COMES FROM PROPERTY TRANSACTIONS IF PROPERTY VALUES WERE TO SINK AND SUCH TRANSACTIONS DRY UP STOCK PRICES AT TODAY'S LEVELS SUDDENLY COULD EQUAL 20 TIMES EARNINGS OR MORE THIS MARKET IS OBVIOUSLY GETTING MORE SPECULATIVE SAYS WILLIAM R EBSWORTH MANAGING DIRECTOR OF FIDELITY INVESTMENTS IN HONG KONG ON THE SURFACE ANALYSTS SAY ECONOMIC GROWTH HAS PRODUCED AND MAY EVEN JUSTIFY HIGH ASSET PRICES LAST YEAR HONG KONG'S ECONOMY EXPANDED 52 CHINA'S GREW A WORLDLEADING 122 BOTH ECONOMIES ARE EXPORTLED WEALTH GENERATED BY THAT GROWTH HAS BEEN PUMPED INTO STOCKS AND PROPERTY PARTICULARLY IN HONG KONG WHERE CHINESE COMPANIES AND MUNICIPALITIES CAN STASH THEIR HARD CURRENCY OUT OF THE REACH OF BEIJING ECONOMIC PLANNERS ONE WORRY IN HONG KONG THESE DAYS IS THAT CHINESE COMPANIES SOON MIGHT BE FORCED TO LIQUIDATE THEIR HOLDINGS CHINA'S GOVERNMENT NOW IS ATTEMPTING TO CURTAIL CREDIT TO CURB CORROSIVE INFLATION WHICH IN APRIL REACHED 17 FROM A YEAR EARLIER IN URBAN AREAS AT THE SAME TIME IF DEPRECIATION OF THE YUAN PUTS ITS VALUE WHERE CHINESE INVESTORS THINK IT BELONGS COMPANIES MIGHT FEEL CONFIDENT ENOUGH TO REPATRIATE FUNDS NOW LODGED IN HONG KONG BESIDES HONG KONG ASSET PRICES HAVE BEEN PROPPED UP BY A FINANCIAL PHENOMENON THAT MAY BE COMING TO AN END NEGATIVE REAL INTEREST RATES ALSO SEEN IN JAPAN FOR MUCH OF THE LATE 1980S MONEYMARKET RATES IN THE BRITISH COLONY NOW HOVER JUST ABOVE 3 WAY BELOW THE INFLATION RATE OF NEARLY 10 THAT IS A HUGE INDUCEMENT FOR INVESTORS TO BORROW AT LOW COSTS TO BUY RAPIDLY APPRECIATING STOCKS AND PROPERTY UNTIL RECENTLY THE TREND HAD BEEN UNCHECKED SINCE 1983 HONG KONG'S CURRENCY HAS BEEN LINKED TO THE US DOLLAR THUS TYING INTEREST RATES IN THE TWO COUNTRIES US RATES WERE LOW BECAUSE OF LETHARGIC ECONOMIC GROWTH AND AN ABSENCE OF INFLATION THERE HONG KONG RATES HAVE BEEN EQUALLY LOW DESPITE HEALTHY GROWTH AND FAIRLY HIGH INFLATION THE DEGREE OF COMPLACENCY HERE ABOUT THINGS LIKE INFLATION IS ABSOLUTELY BEWILDERING SAYS JIM WALKER HEAD OF RESEARCH AT CREDIT LYONNAIS SECURITIES ASIA WHO THUS THINKS THERE IS QUITE A LARGE ELEMENT OF BUBBLE IN THE MARKETS HERE WITH ANALYSTS NOW PREDICTING AN UPTURN IN US INTEREST RATES SOME MARKET FOLLOWERS RECALL THAT IT WAS A GRADUAL TIGHTENING OF HISTORICALLY LOW INTEREST RATES THAT BROUGHT ON A COLLAPSE IN STOCK AND PROPERTY PRICES IN JAPAN STARTING IN 1990 MANY ANALYSTS DON'T FORESEE AN UNRAVELING OF ASSET PRICES IN HONG KONG AND SOUTH CHINA THE LONGTERM GROWTH POTENTIAL OF CHINA LOOKS GOOD SAYS DAVID LAWRENCE OF KERRY SECURITIES LTD AND HONG KONG IS THE MOST CONVENIENT ENTRYWAY BUT EVEN AN OPTIMIST LIKE MR LAWRENCE HARBORS DOUBTS ABOUT THE SHORT TERM IF CHINA REALLY SLAMS ON THE BRAKES HE SAYS IT'S GOING TO HURT EVERYONE HERE 9306090056 930609 WORKPLACE THREE DECADES AFTER THE EQUAL PAY ACT WOMEN'S WAGES REMAIN FAR FROM PARITY BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL WOMEN HAVE LITTLE TO CELEBRATE TOMORROW ON THE 30TH ANNIVERSARY OF THE EQUAL PAY ACT WOMEN STILL EARN ONLY 70 CENTS FOR EVERY DOLLAR EARNED BY MEN ACCORDING TO 1991 MEDIAN ANNUAL WAGE DATA FROM THE CENSUS BUREAU ESTIMATES FOR 1992 AREN'T YET AVAILABLE THAT IS UP A DIME FROM 1963 WHICH MEANS WOMEN'S EARNINGS HAVE GAINED ON MEN'S BY A RATIO OF ONETHIRD OF ONE PERCENT A YEAR OVER THE PAST THREE DECADES MINORITY WOMEN FARE WORSE IN 1991 BLACK AND HISPANIC WOMEN EARNED 62 CENTS AND 54 CENTS RESPECTIVELY FOR EVERY DOLLAR EARNED BY WHITE MEN ACCORDING TO MEDIAN ANNUAL WAGE DATA FROM THE CENSUS BUREAU THOSE FIGURES ARE JUST AVERAGES AMALGAMS OF JOBS RANGING FROM DOORTODOOR SALES TO DEAL MAKING NUMBERS FOR INDIVIDUAL PROFESSIONS SHOW THAT IT IS OFTEN THE HOURLY WORKERS WHO COME CLOSEST TO PARITY WHILE THE WHITECOLLAR CROWD EARNS AS LITTLE AS HALF FEMALE CASHIERS FOR INSTANCE MADE 95 CENTS ON THE MALE DOLLAR LAST YEAR WHILE FEMALE SECURITIES BROKERS EARNED ONLY 52 CENTS ACCORDING TO WEEKLY WAGE FIGURES FROM THE BUREAU OF LABOR STATISTICS FEMALE FINANCIAL MANAGERS INCLUDING THOSE WHO CLOSE MULTIMILLIONDOLLAR DEALS EARNED ONLY 62 CENTS ON THE MALE DOLLAR THE EQUAL PAY ACT WAS SUPPOSED TO CLOSE THAT GAP BUT IN FACT STATISTICS SHOW IT HAS BARELY MADE AN IMPACT NINE TIMES SINCE IT BECAME LAW THE PAY GAP HAS ACTUALLY WIDENED FROM ONE YEAR TO THE NEXT ACCORDING TO STATISTICSBUREAU FIGURES AND WHILE THE PAY GAP HAS NARROWED OVERALL THAT IS MOSTLY BECAUSE MEN'S WAGES FELL MEASURED IN DOLLARS WOMEN'S MEDIAN HOURLY WAGES WERE 842 LAST YEAR UP ONLY 31 CENTS FROM 1979 BOTH FIGURES ARE IN 1992 DOLLARS ACCORDING TO THE ECONOMIC POLICY INSTITUTE A THINK TANK BASED IN WASHINGTON DC DURING THE SAME PERIOD MEN'S MEDIAN HOURLY WAGES FELL 184 AN HOUR TO 1103 LAST YEAR IS THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION DOING MUCH TO HELP CRITICS THINK NOT IN THE GOVERNMENT'S LAST FISCAL YEAR WHICH ENDED OCT 1 1992 THE EEOC FILED ONLY TWO LAWSUITS UNDER THE ACT DOWN FROM SIX THE YEAR BEFORE AND FROM A HIGH OF 79 IN FISCAL 1980 THAT SENDS A MESSAGE TO EMPLOYERS SAYS HELEN NORTON DEPUTY DIRECTOR FOR WORK AND FAMILY PROGRAMS AT THE NONPROFIT WOMEN'S LEGAL DEFENSE FUND IN WASHINGTON DON LIVINGSTON GENERAL COUNSEL FOR THE EEOC SAYS THE COMMISSION FILES MOST SEXDISCRIMINATION CASES UNDER THE CIVIL RIGHTS ACT OF 1964 BECAUSE THAT ACT HAS NO STATUTE OF LIMITATIONS WHILE THE EQUAL PAY ACT HAS A TWOYEAR LIMIT IN FISCAL 1991 THE EEOC FILED 24 SEXDISCRIMINATION PAYGAP CASES UNDER BOTH ACTS HE SAYS COMPANIES HAVE LONG ARGUED THAT WOMEN GET PAID LESS BECAUSE THEIR CREDENTIALS DON'T STACK UP TO MEN'S BUT RESEARCH FROM PETER HAMMERSCHMIDT POKES HOLES IN THAT THEORY AN ECONOMICS PROFESSOR AT ECKERD COLLEGE IN ST PETERSBURG FLA HE ANALYZED THE PAY AND CREDENTIALS OF 194 CORPORATE MANAGERS RANDOMLY CHOSEN FROM 800 WHO TOOK A LEADERSHIP COURSE AT ECKERD IN RECENT YEARS HIS FINDINGS IF WOMEN WERE MEN WITH THE SAME CREDENTIALS THEY WOULD EARN ABOUT 18 MORE MOST WOMEN CAN'T ADDRESS THE PAY GAP BECAUSE THEY DON'T KNOW WHAT THEIR COLLEAGUES EARN AND FINDING OUT IS DIFFICULT PAY IS A TOPIC MORE TABOO THAN SEX WHEN THEY DO FIND OUT IT IS OFTEN BECAUSE THEY HAVE A FRIEND IN PAYROLL OR THEY HAVE PIECED TOGETHER YEARS OF CLUES ABOUT COLLEAGUES' SPENDING HABITS THAT'S HOW MARCIA RAFTER SAYS SHE FOUND OUT DURING HER EIGHT YEARS AT CITIBANK MS RAFTER WATCHED AS MANY OF HER MALE COLLEAGUES WHO BROUGHT IN FEWER PROFITS PURCHASED BOATS AND EXPENSIVE HOMES THINGS SHE SAYS SHE COULDN'T AFFORD WHEN SHE ASKED FOR RAISES SHE SAYS SHE WAS TOLD THAT AS A SINGLE WOMAN SHE DIDN'T NEED AS MUCH MONEY AS A MAN I WAS NO 1 OR NO 2 IN TERMS OF PROFITS BUT MY COMPENSATION NEVER REFLECTED THAT MS RAFTER ALLEGES SHE SAYS SHE WAS FIRED IN 1988 AS A VICE PRESIDENT OF POSITIONING AND ARBITRAGE CITIBANK A UNIT OF CITICORP DECLINES TO COMMENT NOTING THAT MS RAFTER HAS FILED A SUIT AGAINST IT ONE GEOLOGIST WHO DECLINES TO BE NAMED SAYS SHE GOT A HINT THAT SHE WAS BEING PAID LESS THAN LESSEXPERIENCED MALE COWORKERS BY CHATTING WITH DRILLERS ON HER FIELD SITE THEN A FRIEND TOLD HER THAT ONE OF HER MALE COWORKERS WHO HAD ONLY ONE YEAR ON THE JOB WAS GETTING PAID ABOUT THE SAME AS SHE WAS EVEN THOUGH SHE HAD FIVE YEARS' EXPERIENCE TO SEE IF THE GOSSIP WAS TRUE SHE CALLED A FORMER BOSS WHO FILLED HER IN ON AVERAGE SALARIES FOR WORKERS WITH HER CREDENTIALS AND EXPERIENCE ABOUT 40000 COMPARED WITH THE 26000 SHE WAS EARNING AT THE TIME IT REALLY STEAMED ME SHE SAYS SHE QUIT THIS YEAR AND IS NOW LOOKING FOR A NEW JOB IN RUNNING AND NOT FIGHTING THE GEOLOGIST WASN'T ALONE EXPERTS SAY WOMEN ARE LESS SAVVY AT NEGOTIATING PAY THAN MEN AND SEVERAL WOMEN WHO HAVE BARGAINED FOR RAISES AGREE AMONG THEM IS DEBORAH TANNEN THE GEORGETOWN UNIVERSITY LINGUISTICS PROFESSOR WHO HAS COACHED MEMBERS OF CONGRESS ON THE DIFFERENT COMMUNICATION PATTERNS OF MEN AND WOMEN MS TANNEN AUTHOR OF YOU JUST DON'T UNDERSTAND SAYS THAT GIRLS ARE TAUGHT FROM AN EARLY AGE NOT TO STAND OUT AND THAT AS WOMEN THEY MAKE SELFDEPRECATING REMARKS WAITING FOR FRIENDS TO BUILD THEM UP FOR INSTANCE A WOMAN MIGHT REMARK THAT SHE IS FAT EXPECTING A REPLY THAT SHE ISN'T ASKING FOR A RAISE REQUIRES A KIND OF SELFPROMOTION THAT NEGATES THIS TRAINING MS TANNEN SAYS THAT DISTASTE FOR CONFRONTATION APPLIES EVEN TO WALL STREET WOMEN WHO MAY THRIVE ON CONFRONTATION ON THE JOB CONSIDER LIZ SOBOL WHO RESIGNED AS KIDDER PEABODY & CO'S DIRECTOR OF CORPORATE FINANCE IN 1991 SHORTLY THEREAFTER SHE SUED THE COMPANY IN US DISTRICT COURT IN NEW YORK SHE ALLEGES THAT IN 1988 KIDDER PAID HER 655000 FOR BRINGING IN ABOUT 9 MILLION IN FEES BUT THAT THE YEAR BEFORE THE FIRM HAD PAID MORE TO A MALE COWORKER WHO BROUGHT IN NO REVENUE KIDDER A UNIT OF GENERAL ELECTRIC CO SAYS THAT MS SOBOL WAS PAID IN THE TOP ONETHIRD OF HER PEER GROUP AND THAT SEVERAL PEOPLE HELPED BRING IN THE FEES SHE SAYS SHE GENERATED A SPOKESWOMAN SAYS COMPENSATION AT KIDDER IS BASED ONLY PARTLY ON FEES BUT DECLINES TO ELABORATE MS SOBOL'S FIRST REACTION TO THE PAY FLAP I JUST WANTED TO HIDE UNDER THE COVERS AND HOPE THE WORLD WOULD GO AWAY IT WAS HER HUSBAND WHO ENCOURAGED HER TO SUE AND THE COST MAY BE GREAT SINCE I'VE FILED MY LAWSUIT SHE SAYS ONE HEADHUNTER HAS TOLD ME PROBABLY NO MAJOR FIRM ON WALL STREET WOULD TOUCH ME 9306090055 930609 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 LOW 2 NEAR CLOSING BID 2 1/4 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 315 30 TO 59 DAYS 317 60 TO 89 DAYS 320 90 TO 119 DAYS 326 120 TO 149 DAYS 330 150 TO 179 DAYS 333 180 TO 229 DAYS 340 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 320 30 DAYS 324 60 DAYS 328 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 268 TWO MONTHS 273 THREE MONTHS 291 SIX MONTHS 316 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 315 ONE MONTH 327 THREE MONTHS 344 SIX MONTHS BANKERS ACCEPTANCES 311 30 DAYS 316 60 DAYS 320 90 DAYS 326 120 DAYS 330 150 DAYS 334 180 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 735 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 724 60 DAYS 734 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 9306090054 930609 TECHNOLOGY BRIEF BELL ATLANTIC CORP SOPHISTICATED SYSTEM BASED ON DIGITAL DATA IS PLANNED BELL ATLANTIC CORP'S MOBILE TELEPHONE UNIT SAID IT PLANS TO INSTALL A SOPHISTICATED CELLULAR DATA SYSTEM THAT WILL OPEN THE WAY FOR A RANGE OF NEW COMMUNICATIONS SERVICES BEGINNING WITH A SYSTEM IN WASHINGTON DC LATER THIS YEAR THE SERVICE IS BASEDON CELLULAR DIGITAL PACKET DATA TECHNOLOGY WHICH IS BEING DEVELOPED BY A GROUP OF THE NATION'S LARGEST CELLULAR CARRIERS AND INTERNATIONAL BUSINESS MACHINES CORP BELL ATLANTIC MOBILE SYSTEMS THE CELLULAR UNIT SAID IT PLANS TO ROLL OUT THE SERVICE IN ITS SIX REGIONS NATIONWIDE BY THE END OF 1994 SIMILAR ANNOUNCEMENTS WERE MADE THIS SPRING BY MCCAW CELLULAR COMMUNICATIONS INC AND AMERITECH CORP BELL ATLANTIC MOBILE SAID AMERICAN TELEPHONE & TELEGRAPH CO'S AT&T NETWORK SYSTEMS A LEADING SUPPLIER OF WIRELESS NETWORK EQUIPMENT WILL PROVIDE THE CDPD SYSTEM DENNIS F STRIGL PRESIDENT AND CHIEF EXECUTIVE OFFICER OF BELL ATLANTIC MOBILE SAID POSSIBLE APPLICATIONS INCLUDE NOTIFYING DELIVERY PEOPLE OF ROUTE CHANGES AND PROVIDING SALESMEN WITH CURRENT PRICES AND INVENTORY INFORMATION THE SYSTEM CAN ALSO BE USED FOR REMOTE MONITORING AND ELECTRONIC MAIL 9306090053 930609 HEALTH CARE BY GLENN RUFFENACH SURE RETIRING EARLY WOULD BE NICE BUT THERE'S THAT LITTLE PROBLEM OF MEDICAL INSURANCE NOWADAYS PEOPLE APPEAR TO REGARD RETIREMENT THE SAME WAY THEY DO FRIDAY AT THE OFFICE GETTING A JUMP ON THE WEEKEND OR ON ONE'S PENSION ALWAYS SEEMS LIKE A GOOD IDEA INDEED THE AVERAGE WORKER TODAY RETIRES AT AGE 62 AFTER 21 YEARS OF SERVICE WITH HIS OR HER EMPLOYER ACCORDING TO A SURVEY OF MORE THAN 300 MIDSIZED AND LARGE COMPANIES BY WILLIAM M MERCER INC A BENEFITS CONSULTING FIRM IN NEW YORK THE SAME STUDY HOWEVER INDICATES THAT AN EARLY START ON THE GOLDEN YEARS IS ONLY GOING TO GET TOUGHER AND HEALTH BENEFITS ARE A BIG REASON ALMOST HALF OF THE HUMANRESOURCES EXECUTIVES SURVEYED PREDICTED THAT THE AVERAGE 65YEAROLD SALARIED EMPLOYEE WON'T BE ABLE TO AFFORD TO RETIRE IN THE YEAR 2000 BY CONTRAST ABOUT TWOTHIRDS OF THOSE EXECUTIVES SAID SUCH A WORKER PROBABLY COULD AFFORD TO RETIRE TODAY WHEN ASKED TO DISCUSS SOME OF THE REASONS FOR THE CHANGE 60 OF RESPONDENTS SAID THEY EXPECT RETIREES WILL HAVE TO MAKE A LARGER CONTRIBUTION TO THEIR HEALTH BENEFITS BY THE YEAR 2000 EMPLOYERS NOW PICK UP ABOUT 62 OF THE TAB FOR HEALTHCARE PREMIUMS ACCORDING TO MERCER WHILE RETIREES PAY THE REST ABOUT 60 OF SURVEYED EXECUTIVES SAID THEY EXPECT THE ELIGIBILITY AGE FOR MEDICARE CURRENTLY 65 TO INCREASE AND ALMOST ALL OF THE RESPONDENTS SAID THE GERIATRIC SET WILL PROBABLY FACE SOME RATIONING OF MEDICAL SERVICES IN THE FUTURE DESPITE CALLS FOR REFORM TWOTHIRDS OF THOSE SURVEYED SAID MAJOR CHANGES IN THE US HEALTHCARE SYSTEM ARE UNLIKELY THE FITNESS BOOM CONTINUES TO SLACKEN THE NUMBER OF AMERICANS GRUNTING PANTING AND SWEATING FELL AGAIN IN 1992 AFTER A DECLINE IN 1991 ACCORDING TO A NATIONWIDE SURVEY IN JANUARY BY AMERICAN SPORTS DATA A RESEARCH FIRM IN HARTSDALE NY THE STUDY FOUND THAT THE NUMBER OF PEOPLE WHO PARTICIPATED 100 TIMES OR MORE IN AT LEAST ONE FITNESS ACTIVITY IN THE PREVIOUS 12 MONTHS FELL 27 IN 1992 TO 422 MILLION FROM 434 MILLION THAT FOLLOWED A DECLINE OF 48 IN 1991 BY CONTRAST PARTICIPATION IN THE LATE 1980S INCREASED ABOUT 6 ANNUALLY MOST PROMINENT AMONG THOSE ABANDONING CALISTHENICS FOR THE COUCH WERE THE PIONEERS OF THE FITNESS REVOLUTION RUNNERS THE COUNTRY'S TOTAL RUNNING POPULATION FELL 8 TO 304 MILLION IN 1992 ACCORDING TO AMERICAN SPORTS DATA THE FALLOFF AMONG HARDCORE RUNNERS THOSE TAKING TO THE STREETS OR TRACK AT LEAST 100 TIMES IN 1992 WAS SMALLER THEIR NUMBERS SHRANK 3 TO 83 MILLION EVEN USE OF HOMEEXERCISE EQUIPMENT SUCH AS TREADMILLS AND NORDIC SKI MACHINES WHICH BOOMED IN RECENT YEARS COOLED SUBSTANTIALLY SOME 18 MILLION PEOPLE FOR INSTANCE USED A STAIRCLIMBING MACHINE AT LEAST ONCE IN 1992 AN INCREASE OF 7 FROM 1991 VS A 40 GAIN IN 1991 ONE BRIGHT SPOT ACCORDING TO AMERICAN SPORTS DATA IS INLINE ROLLERSKATING WITH 94 MILLION PARTICIPANTS IN 1992 A 51 JUMP FROM A YEAR EARLIER IN ADDITION MOUNTAIN BIKING CLIMBED 16 TO 59 MILLION PARTICIPANTS HARVEY LAUER PRESIDENT OF AMERICAN SPORTS DATA SAYS THE OVERALL DROP IN THE NUMBER OF ATHLETIC BUFFS REFLECTS THE NATURAL EBB AND FLOW OF A LONGTERM TREND THE FITNESS BOOM ISN'T OVER HE SAYS RATHER SOME PARTS OF IT ARE SIMPLY PAUSING TO CATCH THEIR BREATH IN THE FUTURE KNEE INJURIES MIGHT BE TREATED BY MEANS OF CARTILAGE TRANSPLANTS EACH YEAR ABOUT ONE MILLION PATIENTS WITH INJURED KNEES HAVE PART OR ALL OF THE CARTILAGE IN THE KNEE REMOVED INVARIABLY MOST OF THOSE PEOPLE DEVELOP ARTHRITIS IN THE WORST CASES THE KNEE ITSELF IS REPLACED WITH AN ARTIFICIAL JOINT ABOUT 187000 SUCH OPERATIONS WERE PERFORMED IN THE US LAST YEAR AT AN AVERAGE COST OF 40000 BEFORE THE 1980S ANY DAMAGE TO CARTILAGE NORMALLY RESULTED IN REMOVAL OF ALL THE TISSUE IN THE PAST DECADE PARTIAL REMOVAL OF CARTILAGE BECAME POSSIBLE TODAY A HANDFUL OF PHYSICIANS ARE EXPERIMENTING WITH CARTILAGE REPLACEMENT REMOVING THE TISSUE FROM DECEASED DONORS AND TRANSPLANTING IT TO DAMAGED KNEES THE PROCEDURE PIONEERED IN GERMANY IN THE MID1980S HAS BEEN PERFORMED ONLY ABOUT 200 TIMES IN THE US ACCORDING TO EUGENE M WOLF AN ORTHOPEDIC SURGEON AT CALIFORNIA PACIFIC MEDICAL CENTER IN SAN FRANCISCO TO DATE HE SAYS THE RESULTS HAVE BEEN ENCOURAGING REJECTION OF THE CARTILAGE SHAPED LIKE THE LETTER C AND ABOUT TWO INCHES IN DIAMETER IS VIRTUALLY NONEXISTENT BECAUSE LITTLE BLOOD IS PRESENT IN THE TISSUE BUT THE PITFALLS ARE NUMEROUS BECAUSE THE SURGERY IS DESIGNED TO PREVENT OR SLOW THE ONSET OF ARTHRITIS PEOPLE ALREADY INCAPACITATED CAN'T BENEFIT FROM THE PROCEDURE FITTING CARTILAGE TO THE RECIPIENT'S KNEE CAN ALSO BE DIFFICULT A DONOR'S TISSUE MIGHT BE TOO LARGE OR TOO SMALL IT'S LIKE WALKING THROUGH A MINEFIELD SAYS DR WOLF BUT SOMEDAY IT COULD HELP THOUSANDS OF PEOPLE EVERY YEAR DOCTORS SEEM TO HAVE A TOUGH TIME FOLLOWING THE ADVICE THEY GIVE OTHERS A SURVEY BY SUDLER & HENNESSEY A HEALTHCARE COMMUNICATIONS FIRM IN NEW YORK FOUND THAT ALMOST ONEQUARTER OF PHYSICIANS PREFER BEEF FOR DINNER DESPITE DIETARY CONCERNS ABOUT RED MEAT ABOUT 55 OF THE PHYSICIANS SURVEYED CONSIDERED THEMSELVES TO BE OVERWEIGHT AND 71 OF THAT GROUP SAID THEY WERE TOO HEAVY BY MORE THAN 10 POUNDS ONLY ONE IN FIVE DOCTORS SAID THEY EAT THE RECOMMENDED SERVINGS OF FRUITS AND VEGETABLES DAILY SO YOU SAY YOU WANT TO BE A REPRODUCTIVE ENDOCRINOLOGIST PHYSICIANS WHO SPECIALIZE IN INVITRO FERTILIZATION AND SIMILAR TECHNIQUES EARN ALMOST 260000 A YEAR ON AVERAGE THE HIGHEST REIMBURSEMENT IN A SURVEY OF STAFF PHYSICIANS BY WILLIAM M MERCER AT THE LOW END OF THE SCALE PEDIATRICIANS AT 98000 9306090052 930609 BUSINESS BRIEF TEXAS UTILITIES CO REGULATORY STAFF QUESTIONS COSTS OF COMANCHE PEAK TEXAS UTILITIES CO DALLAS SAID THAT THE STAFF OF THE TEXAS UTILITY COMMISSION IS QUESTIONING 462 MILLION OF COSTS ON THE COMANCHE PEAK NUCLEAR PLANT THE OPINIONS WERE PART OF THE TESTIMONY FILED BY THE STAFF OF THE PUBLIC UTILITY COMMISSION OF TEXAS IN THE UTILITY'S PENDING RATE CASE FOR ITS TU ELECTRIC SUBSIDIARY IN APRIL THE COMMISSION STAFF RECOMMENDED A 582 MILLION OR 117 INCREASE SUBJECT TO ADJUSTMENT BASED ON THE PRUDENCE FUEL AND RATE CASE EXPENSE SECTIONS OF THE PROCEEDINGS TEXAS UTILITIES IN JANUARY HAD ASKED FOR A 153 OR ROUGHLY 760 MILLION RATE INCREASE TO COVER COSTS OF COMANCHE PEAK PREVIOUSLY THE COMMISSION DISALLOWED ABOUT 138 BILLION IN COSTS ALTHOUGH ABOUT 59 BILLION HAS BEEN INCLUDED IN THE RATE BASE THIS TIME THE COMMISSION STAFF CITED OPINIONS THAT AN ADDITIONAL 462 MILLION IN COSTS SHOULD BE DISALLOWED BECAUSE IT WAS IMPRUDENTLY INCURRED THE COMPANY SAID IT DISAGREED WITH THE ALLEGED IMPRUDENCE AND PROPOSED CEILING ON COSTS AND WILL VIGOROUSLY OPPOSE THESE RECOMMENDATIONS 9306090051 930609 BUSINESS BRIEF ITT CORP AUTOMOTIVE DIVISION UNVEILS 27 BILLION SPENDING PLAN ITT CORP'S AUTOMOTIVE PARTS DIVISION UNVEILED A FIVEYEAR 27 BILLION CAPITAL SPENDING PLAN AIMED AT PROTECTING ITS MARKET POSITION IN BRAKING AND WIPER EQUIPMENT MUCH OF THE NEW SPENDING WHICH WILL COME OUT OF CASH FLOW AND EXISTING RESERVES IS AIMED AT DEVELOPING NEW CAPACITY AND TECHNOLOGY FOR THE COMPANY'S SUCCESSFUL ANTILOCK BRAKING SYSTEM AND FOR ITS GROWING WIPER AND ELECTRICAL SYSTEMS BUSINESS ABOUT TWOTHIRDS OF THE DIVISION'S BUSINESS IS IN EUROPE AUTOMOTIVE PARTS SUPPLIERS HAVE BEEN HURT BY LOWER RATES OF RETURN IN RECENT YEARS AS STRUGGLING AUTO MAKERS HAVE SQUEEZED PRICES BUT TIMOTHY D LEULIETTE PRESIDENT AND CHIEF EXECUTIVE OFFICER OF ITT AUTOMOTIVE SAID HIS DIVISION'S OPERATING PROFIT HAS IMPROVED STEADILY THIS YEAR IN THE FACE OF A RECESSION IN EUROPE ITT CORP ALSO HAS INTERESTS IN FINANCIAL SERVICES INSURANCE HOTELS AND ELECTRONICS 9306090050 930609 INTERNATIONAL BRIEF SMITHKLINE BEECHAM PLC CEPHALON REACHES ACCORD TO DEVELOP STROKE DRUGS DRUG MAKER SMITHKLINE BEECHAM PLC AND BIOTECHNOLOGY FIRM CEPHALON INC UNVEILED A FIVEYEAR 25 MILLION RESEARCH PACT TARGETING DEVELOPMENT OF NEW MEDICINES AGAINST STROKES AND OTHER NEUROLOGICAL DISORDERS CEPHALON WEST CHESTER PA IS A PIONEER IN RESEARCH INTO AN ARCANE ENZYME CALLED CALPAIN THAT'S BELIEVED TO PLAY A KEY ROLE IN THE DEATH OF NERVE CELLS AFTER A STROKE WHILE STRESSING THAT THE RESEARCH REMAINS AT A VERY EARLY STAGE FRANK BALDINO CEPHALON'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID THAT DEVELOPMENT OF A DRUG CAPABLE OF BLOCKING ACTIVATION OF CALPAIN MIGHT PREVENT OR LIMIT DAMAGE FROM A STROKE THE RESEARCH PACT WITH SMITHKLINE ALSO COVERS POSSIBLE USE OF ANTICALPAIN DRUGS AGAINST OTHER DISEASES THE CEPHALON LINK IS THE SECOND TRANSATLANTIC BIOTECH PARTNERSHIP FORGED BY SMITHKLINE IN LESS THAN A MONTH IN MIDMAY THE ANGLOAMERICAN DRUG MAKER UNVEILED AN ALLIANCE FOR LARGESCALE HUMAN GENE SEQUENCING WITH HUMAN GENOME SCIENCES INC ROCKVILLE MD IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY CEPHALON JUMPED 1 TO 1250 9306090049 930609 LETTERS TO THE EDITOR UNDERSTANDING THE GOAL IN JAPANESE TECHNIQUE IN REGARD TO YOUR MAY 7 PAGEONE ARTICLE ABOUT JAPANESE MANUFACTURING TECHNIQUES IF ONE BELIEVES THAT THE GOAL OF AUTOMATION IS TO ELIMINATE LABOR RATHER THAN DOING SOMETHING THAT WILL FREE A HUMAN FOR MORE PRODUCTIVE ENDEAVORS ONE CAN WELL UNDERSTAND WHY SO MUCH CAPITAL SPENDING IS WASTED IN THE US THERE IS A NEED TO UNDERSTAND THE DESIRED RESULT SO THAT PROPER FOCUS AND INVESTMENT CAN BE MAINTAINED THE FEDERALMOGUL EXAMPLE DEMONSTRATES THIS PERFECTLY BY FOCUSING ON THE JAPANESE TECHNIQUES OF REDUCING SETUP TIMES AND REDUCING LOT SIZES IMPROVEMENTS WERE REALIZED IN PRODUCTIVITY QUALITY AND CUSTOMER RESPONSE I THINK SOMEONE THERE UNDERSTANDS THE GAME PLAN THE BREAKDOWN OF QUALITY CIRCLES SOUNDS MORE LIKE A BREAKDOWN IN MANAGEMENT TO ME WHATEVER YOU CALL IT EMPOWERMENT WORKER PARTICIPATION WORKOUT OR ANY OTHER NAME IT STILL REPRESENTS RECOGNIZING THE ABILITY OF AN INDIVIDUAL HUMAN BEING TO ADD VALUE TO AN ORGANIZATION NO MATTER THE LEVEL OF PARTICIPATION I AGREE WITH JOHN CASSIDY OF UNITED TECHNOLOGIES CORP WHEN HE ATTRIBUTES THE FAILURE OF JUST IN TIME TO MISPLACED GOALS JIT IS NOT AN INVENTORY REDUCTION TECHNIQUE ALTHOUGH REDUCED INVENTORIES ARE A COMMON RESULT THE REASON TO ADOPT JIT IS TO BETTER SERVE CUSTOMER NEEDS BY REDUCING LEAD TIMES AND COST OF PRODUCTION WHILE IMPROVING QUALITY THERE IS NOTHING WRONG WITH JAPANESE REALLY AMERICAN TECHNIQUES BUT TRYING TO IMPLEMENT THEM TOO RAPIDLY BECAUSE WE ARE SO FAR BEHIND OR SINGLY BECAUSE WE THINK THEY ARE STANDALONE PRINCIPLES MAKES SUCCESS DIFFICULT 9306090048 930609 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN COMMUNITY FOREIGN MINISTERS AGREED ON THE MAIN POINTS OF A PLAN TO INCREASE ACCESS FOR EASTERN EUROPEAN COUNTRIES TO THE 12NATION TRADE BLOC'S MARKETS THE PACKAGE IS EXPECTED TO BE APPROVED AT AN EC SUMMIT JUNE 2122 THE EC COMMISSION WON BACKING FOR THE MEASURES WHICH INCLUDE LOWER TARIFFS BY MAKING CONCESSIONS TO OVERCOME OBJECTIONS BY PORTUGAL AND FRANCE FOR EXAMPLE THE COMMISSION ABANDONED ITS IDEA FOR FLEXIBLE CEILINGS ON EASTERN IMPORTS TO REPLACE QUOTAS IN SENSITIVE TRADE AREAS STILL TO BE RESOLVED ARE A TIMETABLE FUNDS FOR TECHNICAL ASSISTANCE AND THE EXTENT OF DEALINGS SUCH AS SETTING OUT THE EC'S COMMITMENT TO MEET TRADE ASPIRATIONS OF POLAND HUNGARY THE CZECH REPUBLIC SLOVAKIA BULGARIA AND ROMANIA MEANWHILE A PARTNERSHIP ACCORD ON TRADE BETWEEN THE EC AND RUSSIA WON'T BE READY IN TIME FOR THE SUMMIT IN DENMARK ROMANIA OPENED BIDDING TO DOMESTIC AND FOREIGN CONSTRUCTION COMPANIES FOR A SWEEPING MODERNIZATION OF THE COUNTRY'S DECREPIT NARROW AND UNSAFE HIGHWAYS THE GOVERNMENT WILL PAY FOR A THIRD OF THE ESTIMATED 381 MILLION PROJECT WITH THE REST TO COME FROM FOREIGN CREDITORS THE PROGRAM AIMS TO BRING 3100 MILES OF ROADS IN THE EAST EUROPEAN COUNTRY UP TO WESTERN STANDARDS AND TO UPGRADE ITS SIX MAIN BORDER CROSSINGS TO SPEED PASSAGE ROMANIA IS A MAJOR TRANSIT POINT FOR LAND TRANSPORT FROM EAST AND SOUTHEAST EUROPE AND ITS BLACK SEA PORT OF CONSTANTA IS ONE OF THE LARGEST IN THE REGION KUWAIT LIFTED ITS BAN ON FOREIGN CORPORATIONS THAT ALSO DEAL WITH ISRAEL CITING CONSIDERATIONS OF NATIONAL INTEREST THOUGH THE MOVE WAS VIEWED AS A POLITICAL RESPONSE TO US PRESSURE THE EMIRATE HAS PARTICIPATED IN THE ARAB BOYCOTT THAT BLACKLISTS FOREIGN COMPANIES THAT INVEST IN OR TRADE WITH ISRAEL BUT KUWAIT REMAINS COMMITTED TO THE 1951 ECONOMIC EMBARGO THAT BARS ARAB STATES EXCEPT EGYPT FROM DIRECT FINANCIAL OR COMMERCIAL LINKS WITH ISRAEL THE DECISION IS EXPECTED TO HAVE LITTLE EFFECT ON KUWAITI TRADE AND INVESTMENT PATTERNS JAPAN'S SUPPLEMENTARY BUDGET OF 2189 TRILLION YEN 2041 BILLION TO STIMULATE THE SAGGING ECONOMY BECAME LAW THE OPPOSITIONCONTROLLED UPPER HOUSE OF JAPAN'S DIET OR PARLIAMENT REJECTED THE PACKAGE BUT UNDER THE CONSTITUTION APPROVAL BY THE LOWER HOUSE WHICH IS DOMINATED BY THE RULING LIBERAL DEMOCRATIC PARTY TAKES PRECEDENCE IN DIVIDED BUDGETARY VOTES THE MEASURE EARMARKS 12 TRILLION YEN FOR ADDED PUBLICWORKS SPENDING 40175 BILLION YEN FOR DISASTER RELIEF AND 62002 BILLION YEN FOR EQUIPMENT AND BUILDING PURCHASES ABOUT 5000 STRIKING COAL MINERS IN UKRAINE'S INDUSTRIALIZED DONETSK REGION RALLIED TO PROTEST HIGH PRICES AND DEMAND THE RESIGNATION OF PRESIDENT LEONID KRAVCHUK WORKERS IN THE DONETSK COAL BASIN KNOWN AS THE DONBASS SHUT AT LEAST 24 PITS STARTING MONDAY TWO DAYS AFTER THE GOVERNMENT RAISED PRICES FOR PRODUCTS RANGING FROM CONSUMER GOODS TO GASOLINE UKRAINE HAS PERIODICALLY RAISED PRICES TO KEEP PACE WITH THE FALLING VALUE OF ITS CURRENCY AND HIGHER PRICES IN NEARBY COUNTRIES ESPECIALLY RUSSIA THE MINERS WANT HIGHER PAY AND PENSIONS AND LOWER COAL TAXES GERMAN BUSINESSES THAT DECLARED BANKRUPTCY IN THE FIRST QUARTER TOTALED 2960 SOARING 27 FROM A YEAR EARLIER THE INCREASE WAS QUICKENED BY A MARCH JUMP IN WESTERN GERMAN INSOLVENCIES OF 31 TO 1064 AS THE DEEP RECESSION CONTINUED THE BIGGEST INCREASE IN FIRSTQUARTER FAILURES WAS IN THE MANUFACTURING SECTOR WHICH RECORDED A 61 SURGE WHILE THOSE IN THE CONSTRUCTION AND TRADING SECTORS EACH ROSE 19 AND IN THE SERVICE INDUSTRY 16 TO FIGHT GOVERNMENT CORRUPTION TAIWAN'S PARLIAMENT PASSED A BILL FORCING OFFICIALS TO DISCLOSE THEIR ASSETS EFFECTIVE IN SEPTEMBER OVERRIDING A LOOSER PROPOSAL BY THE GOVERNING NATIONALIST PARTY THE MEASURE REQUIRES 27000 LEGISLATORS GOVERNMENT OFFICIALS AND OFFICERS OF STATERUN COMPANIES TO REPORT THEIR ASSETS FOR PUBLICATION THE RULING PARTY OPPOSED THIS SAYING IT COULD EXPOSE WEALTHY INDIVIDUALS TO EXTORTION OR MUDSLINGING THE LEGISLATION ALSO REQUIRES ABOUT 400 TOP OFFICIALS AND LEGISLATORS TO HAVE INVESTMENT FIRMS MANAGE THEIR STOCKS AND PROPERTY TO DETER PROFITING THROUGH ABUSES OF POWER THE NATIONALISTS SAID THIS VIOLATES THE RIGHT TO MANAGE ONE'S OWN ASSETS THE OPPOSITION HAS ACCUSED LAWMAKERS OF TAKING BRIBES FOR PUBLIC CONTRACTS AND OF HIDING ILLEGAL OR UNLICENSED BUSINESS SEPARATELY THE AMERICAN CHAMBER OF COMMERCE IN TAIWAN SAID IT WOULD WITHDRAW FROM ITS PARENT GROUP WHICH HAS URGED US TRADE SANCTIONS AGAINST TAIWAN UNLESS IT STAMPS OUT COPYRIGHT PIRACY THE GROUP'S PROTEST CITED TAIWAN'S PROGRESS IN PROTECTING FOREIGN FIRMS' INTELLECTUAL PROPERTY RIGHTS THE PHILIPPINES ORDERED TAX AND CUSTOMS OFFICERS TO INTENSIFY COLLECTION EFFORTS AFTER REVENUES FOR THIS YEAR'S FIRST FOUR MONTHS TOTALED 846 BILLION PESOS 317 BILLION 14 SHORT OF THE TARGET WITH BEACH VOLLEYBALL COMPETITION CATCHING ON WORLDWIDE ORGANIZERS IN VIETNAM HOPING TO CAPITALIZE ON ITS 2026 MILES OF COASTLINE CHOSE THE SAND AT SAM SON 105 MILES SOUTH OF HANOI FOR AN AUGUST TOURNAMENT 9306090047 930609 LETTERS TO THE EDITOR POPPING A BREWSKI IS HARDLY A SIN CAPS OFF TO YOU FOR YOUR MAY 12 EDITORIAL BILL BEER AND SIN YOU CORRECTLY ASK A QUESTION THE BREWING INDUSTRY HAS BEEN ASKING FOR YEARS ABOUT A REFRESHING BEVERAGE THAT DATES BACK MORE THAN 6000 YEARS AND THAT THE BIBLE REFERS TO AS THE WINE OF THE GRAIN SINCE WHEN IS DRINKING BEER A SIN WE MAY HAVE A PARTIAL ANSWER SOME WELLINTENTIONED BUT MISGUIDED SOCIAL ACTIVISTS HAVE MADE CAREERS OUT OF TRYING TO CONVINCE PUBLICPOLICY MAKERS AND THE MEDIA THAT BEER DRINKERS SHOULD BE CLASSIFIED AS SINNERS OR WORSE AND SHOULD BE TAXED TO DEATH FOR ENJOYING THE PLEASURES OF A COLD ONE THESE ACTIVISTS CAN TRACE EVERY ILL IN SOCIETY BACK TO DRINKING AND WILL NOT STOP UNTIL MODERATE DRINKERS ARE HOUNDED OUT OF EXISTENCE USING BEER TAXES TO FUND HEALTHCARE REFORM NOT ONLY WOULD ELIMINATE JOBS IT WOULD NOT RAISE THE DOLLARS NEEDED BY THE FEDERAL GOVERNMENT AND BEER TAXES ARE REGRESSIVE PRIMARILY AFFECTING MIDDLECLASS AMERICAN WORKERS EARNING LESS THAN 30000 WHO ALREADY PAY THEIR FAIR SHARE TAXING BEHAVIOR IS DANGEROUS PUBLIC POLICY THE NEXT THING YOU KNOW SOMEONE COULD SUGGEST WE TAX THE SEVEN MOST DEADLY SINS OF PRIDE AVARICE LUST ENVY GLUTTONY ANGER AND SLOTH THE CLINTON ADMINISTRATION'S SUGGESTION THAT BEER BUT NOT WINE IS THE BEVERAGE OF THE WORKING CLASS IS AN INSULT TO FAMILIES THAT OPERATE SMALL WINERIES IN 42 STATES TO TRULY UNDERSTAND THE MEANING OF WORK I SUGGEST PRESIDENT CLINTON JOIN ME FOR A 70HOUR WORK WEEK STRUGGLING TO MAKE A SUCCESS OF MY SMALL ENTERPRISE WHILE SIMULTANEOUSLY ENDURING SENSELESS GOVERNMENT REGULATION AND EXCESSIVE TAXATION IN READING YOUR EDITORIAL I WAS REMINDED OF THE LITHUANIAN TEMPERANCE MOVEMENT OF THE 1860S ESPECIALLY YOUR COMMENT THAT SIN TAXES ARE THE LAST REFUGE OF IRREDEEMABLE POLITICIANS ON WHAT WAS TO BE THE EVE OF POLITICAL DEMONSTRATIONS AGRARIAN REFORMS AND THE GREAT POPULAR UPHEAVAL OF 18621864 BY LITHUANIAN PEASANTS AGAINST THE OCCUPYING RUSSIANS CATHOLIC BISHOP VALANCIUS INITIATED AN AMBITIOUS TEMPERANCE MOVEMENT TO ELEVATE THE RELIGIOUS AND MORAL STANDARDS OF THE MASSES EASE THE HARD LOT OF SERFS AND END THEIR EXPLOITATION THE RUSSIAN RULERS AT FIRST AMUSED WITH THE BISHOP'S PERSONAL EFFORTS TO ADMINISTER VOWS OF TEMPERANCE AND ENROLL THE NAMES OF ABSTAINERS BECAME OUTRAGED FROM THE LOSS OF TAX REVENUE ON VODKA AS THE TEMPERANCE MOVEMENT SPREAD THROUGHOUT LITHUANIA REACHING ST PETERSBURG AND THE RUSSIAN INTERIOR WITHIN TWO YEARS 82 OF LITHUANIA WAS BY CHOICE DRY IN ONE COUNTY 35000 RUBLES WERE COLLECTED IN EXCISE TAXES FOR VODKA IN 1858 FIVE MONTHS LATER REVENUES HAD SHRUNK TO JUST 500 RUBLES BY THAT TIME THE RUSSIAN GOVERNOR HAD BANNED ALL TEMPERANCE FRATERNITIES AND WENT OUT OF HIS WAY TO PROMOTE DRUNKENNESS HE WENT SO FAR AS TO PLACE BARRELS OF VODKA ACROSS THE STREET FROM CATHOLIC CHURCHES OFFERING FREE DRINKS HE ALSO TOLD THE PEASANTS THAT BECAUSE OF THE LITHUANIAN CLIMATE DRINKING VODKA WAS ESSENTIAL TO THEIR HEALTH AND THAT CHRIST HIMSELF DRANK SO INFURIATED WERE THE RULERS BY THE LOSS OF TAX REVENUES THAT WITHIN FOUR YEARS THE PREACHING OF TEMPERANCE FROM PULPITS WAS FORBIDDEN AND VIOLATORS WERE PUNISHED WITH HEAVY FINES BISHOP VALANCIUS'S TEMPERANCE DRIVE NOT ONLY DRIED UP RUSSIAN TAX REVENUES BUT ALSO STRONGLY ELEVATED THE CHURCH'S INFLUENCE IN LITHUANIA DURING THE YEARS OF ECONOMIC AND SOCIAL UPHEAVAL THAT FOLLOWED 9306090046 930609 BUSINESS BRIEF FLUOR CORP NET INCOME INCREASED 30 IN QUARTER ENDED APRIL 30 FLUOR CORP IRVINE CALIF POSTED A 30 INCREASE IN NET INCOME FOR THE SECOND QUARTER ENDED APRIL 30 CITING A RISE IN OPERATING PROFIT AT ITS CORE ENGINEERING AND CONSTRUCTION BUSINESS FLUOR DANIEL QUARTERLY NET WAS 42 MILLION OR 51 CENTS A SHARE AFTER A NONRECURRING NET GAIN OF 34 MILLION IN THE YEAREARLIER QUARTER NET WAS 324 MILLION OR 40 CENTS A SHARE AFTER A LOSS FROM ITS DISCONTINUED LEAD OPERATIONS OF 32 MILLION OR FOUR CENTS A SHARE REVENUE ROSE 30 TO 201 BILLION FROM 154 BILLION THE NET GAIN IN THE LATEST SECOND QUARTER REFLECTED A 126 MILLION GAIN FROM A FAVORABLE TAX AUDIT FOR THE TAX YEARS ENDED OCT 31 1984 THROUGH 1986 THAT WAS OFFSET BY A 92 MILLION RESERVE FOR AN ANTICIPATED LEGAL SETTLEMENT BETWEEN THE COMPANY'S AT MASSEY COAL COMPANY AND THE PENSION FUNDS OF THE UNITED MINE WORKERS OF AMERICA/BITUMINOUS COAL OPERATORS OF AMERICA FOLLOWING A RECENT FEDERAL COURT RULING AGAINST THE COMPANY FOR THE SIX MONTHS NET INCOME ROSE TO 776 MILLION OR 94 CENTS A SHARE FROM 283 MILLION OR 35 CENTS A SHARE A YEAR EARLIER WHEN FLUOR TOOK A 329 MILLION AFTERTAX CHARGE FOR AN ACCOUNTING CHANGE REVENUE ROSE 23 TO 381 BILLION FROM 311 BILLION 9306090045 930609 EEOC RULES TARGET BIAS IN INSURING THE DISABLED WASHINGTON AP THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION ADOPTED INTERIM RULES TO ENSURE THAT EMPLOYERS DON'T DISCRIMINATE AGAINST WORKERS WITH AIDS AND OTHER DISABILITIES IN PROVIDING HEALTH INSURANCE THE PANEL DREW UP THE RULES FOR ITS INVESTIGATORS TO ENFORCE PORTIONS OF THE AMERICANS WITH DISABILITIES ACT OF 1990 THE RULES PUT THE ONUS ON EMPLOYERS AND INSURERS TO JUSTIFY ANY PROVISIONS OF THEIR HEALTH PLANS THAT DISCRIMINATE AGAINST EMPLOYEES WITH DISABILITIES THE EEOC SAID THE RULES ARE BASED ON REQUIREMENTS OF THE 1990 LAW THAT DISABILITYBASED INSURANCE DISTINCTIONS ARE PERMITTED ONLY IF THE EMPLOYERPROVIDED HEALTH INSURANCE PLAN IS BONA FIDE AND THE DISTINCTIONS AREN'T USED TO EVADE THE LAW EMPLOYEES WITH DISABILITIES MUST BE GIVEN EQUAL ACCESS TO WHATEVER HEALTH INSURANCE THE EMPLOYER PROVIDES TO NONDISABLED WORKERS EMPLOYERS MAY NOT MAKE EMPLOYMENT DECISIONS ABOUT ANY PERSON BASED ON CONCERNS ABOUT THE IMPACT ON THE HEALTH PLAN OF THE DISABILITY OF THAT PERSON OR OF SOMEONE ELSE WITH WHOM THAT PERSON HAS A RELATIONSHIP THE RULES WILL REMAIN IN EFFECT UNTIL MORE COMPREHENSIVE RULES SUBJECT TO PUBLIC COMMENT CAN BE DEVELOPED 9306090044 930609 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY SCOTT R SCHMEDEL CUSTOMIZED CUSTOMS DATA WILL BE PROVIDED TO THE STATES' TAX ENFORCERS THE CUSTOMS SERVICE HAS LET MANY STATES COMB ITS RECORDS FOR LEADS TO TRAVELERS AND TRADERS WHO DON'T PAY SALES OR EXCISE TAXES ON IMPORTED GOODS NOW CUSTOMS AND THE FEDERATION OF TAX ADMINISTRATORS HAVE WORKED OUT PLANS TO AUTOMATE AND EXPAND THE PROCESS BY HAVING CUSTOMS SUPPLY STANDARDIZED QUARTERLY EXTRACTS FROM ITS DATABASE ON COMPUTER TAPES THE DATA WILL INCLUDE NAMES ID NUMBERS AND DETAILS ON IMPORTS FROM DECLARATIONS BY BUSINESSES AND INDIVIDUALS ON FORM 7501 THE STATES HOPE DISTRIBUTION CAN BEGIN NEXT YEAR WITH TAPES COVERING 1994'S FIRST QUARTER BESIDES UNTAXED SHIPMENTS REVENUERS WILL LOOK FOR BUSINESSES THAT SHOULD APPEAR ON STATE TAX ROLLS BUT DON'T AND FOR CLUES THAT A BUSINESS SHOULD BE AUDITED THE DATA WILL RELATE ONLY TO THE STATE THAT GETS THEM A TAX AGENCY MUST KEEP THE DATA TO ITSELF AS CONFIDENTIAL TAX INFORMATION EACH STATE THAT GETS COMPUTER TAPES IS TO PAY CUSTOMS ABOUT 1250 A QUARTER A TRUST'S PAYMENTS FOR INVESTMENT ADVICE ARE FULLY DEDUCTIBLE A COURT HOLDS THE SIXTHCIRCUIT APPEALS COURT'S RULING IS A SIGNAL VICTORY FOR TRUSTS AND ESTATES SAYS BERNARD BARNETT OF BDO SEIDMAN CPAS THESE ENTITIES LIKE INDIVIDUALS GENERALLY MAY DEDUCT MISCELLANEOUS ITEMS ONLY TO THE EXTENT THAT THE COSTS EXCEED 2 OF ADJUSTED GROSS INCOME EXCEPT THAT COSTS UNIQUE TO THE ADMINISTRATION OF A TRUST OR ESTATE ARE FULLY DEDUCTIBLE FOR INDIVIDUALS THE 2 FLOOR APPLIES TO INVESTMENT ADVICE BUT INEXPERIENCED TRUSTEES OF THE WILLIAM J O'NEILL JR TRUST BELIEVED THEY NEEDED SUCH ADVICE AND DEDUCTED THE FULL 1987 COST OF 15374 THE IRS SAID THE 2 FLOOR APPLIED AND THE TAX COURT AGREED BUT APPEALS JUDGES HAVE REVERSED THAT RULING THE FEE IS FULLY DEDUCTIBLE BECAUSE IT STEMMED FROM A FIDUCIARY OBLIGATION AND WOULDN'T HAVE BEEN INCURRED IF THE ASSETS HADN'T BEEN HELD IN A TRUST EMPLOYERS MAY TAILOR GROUP TERM LIFE INSURANCE TO TRIM TAXES ON EMPLOYEES BUSINESSES MAY PROVIDE UP TO 50000 OF LIFE INSURANCE AS A TAXFREE FRINGE BENEFIT BUT AN EMPLOYEE IS TAXED ON IMPUTED INCOME FROM THE COST OF COVERAGE EXCEEDING THAT MANY WORKERS WOULD GLADLY FORGO THE HIGHER COVERAGE TO ESCAPE ALL TAX YET GROUP PLANS MUST MEET STRICT TERMS TO KEEP THE BASIC COVERAGE TAXFREE ONE RULE PRECLUDES INDIVIDUAL SELECTION OF COVERAGE WHICH COULD FAVOR SOME GROUP MEMBERS NOW THOUGH IRS PRIVATE RULING 9319026 SAYS A COMPANY MAY LET EMPLOYEES LIMIT COVERAGE THE UNIDENTIFIED COMPANY PAYS FOR COVERAGE THAT IS BASED ON A UNIFORM PERCENTAGE OF ANNUAL PAY UP TO 2 MILLION IT WANTS TO AMEND ITS PLAN TO LET EMPLOYEES LIMIT COVERAGE VOLUNTARILY TO 50000 TO AVOID TAXES THAT'S ALL RIGHT THE IRS SAYS BECAUSE THE COVERAGE AVAILABLE TO EACH EMPLOYEE STILL WILL BE DETERMINED BY THE UNIFORM FORMULA THAT SATISFIES IRS REQUIREMENTS AND BECAUSE THE EMPLOYER WON'T MAKE THE ELECTIONS THE RULING SAYS AN EMPLOYEE MAY NOT RECEIVE CASH OR ANY OTHER BENEFIT IN RETURN FOR LIMITING INSURANCE COVERAGE ALL THE KING'S HORSES IS THE NAME THAT CHIROPRACTOR WILLIAM R KING JR OF CORBETT ORE REGISTERED FOR HIS HORSEBREEDING SIDELINE IT HAD A GREAT FALL HE COULDN'T PUT TOGETHER ENOUGH EVIDENCE TO PROVE HE HAD A PROFIT MOTIVE SO THE TAX COURT SAYS HE CAN'T DEDUCT HIS HORSE HOBBY'S LOSSES TO OFFSET HIS CLINIC'S PROFITS THE PARENTS OF A RETARDED DAUGHTER WHO LIVED AT HOME AND ATTENDED A PUBLIC SCHOOL CAN'T CLAIM HER AS A DEPENDENT THE TAX COURT SAYS THE 16470 THAT THEIR COUNTY PAID THE PARENTS IN 1988 FOR HER CARE EXCEEDED THEIR SHARE OF HER SUPPORT ALSO THE PAYMENT WASN'T A SCHOLARSHIP THAT THEY COULD IGNORE IN FIGURING THEIR SUPPORT SHARE THE OILSPILL FUND HAS BEEN PUMPED ABOVE A 1 BILLION BALANCE BY A TAX ON 300 REFINERS AND IMPORTERS SO THE TAX IMPOSED IN 1990 WILL BE SUSPENDED FROM JULY 1 UNTIL SPENDING TO CLEAN UP OIL SPILLS TRIGGERS RESUMPTION THROUGH MARCH TAX RECEIPTS AND TRANSFERS FROM OTHER FUNDS TOTALED 12 BILLION OUTLAYS TOTALED 2362 MILLION NONFILERS OVERSEAS BAFFLE MOST IRS EFFORTS TO IDENTIFY AND LOCATE THEM AMERICANS LIVING ABROAD WITH INCOME OVER A MINIMUM LEVEL MUST FILE US RETURNS EVEN IF THEY DON'T OWE ANY TAX MOST DON'T SEEM TO KNOW AND DON'T FILE AND AFTER YEARS OF EFFORT THE IRS HAS MADE SMALL PROGRESS IN IDENTIFYING THESE NONFILERS THE GENERAL ACCOUNTING OFFICE SAYS IN 1985 THE GAO ESTIMATED THAT 61 OF AMERICANS LIVING IN SEVEN FOREIGN CITIES WEREN'T FILING SO CONGRESS REQUIRED PASSPORT APPLICANTS TO GIVE SOCIAL SECURITY NUMBERS BUT ACCESS TO THAT DATA OFFERS LITTLE HELP IN TRACING NONFILERS THE IRS DOESN'T EVEN KNOW HOW MANY AMERICANS LIVE ABROAD ATTEMPTS TO ENCOURAGE FILING BY EDUCATION SIMPLIFIED FORMS AND ENFORCEMENT DON'T REACH MOST OF THEM MANY MISTAKENLY THINK THEY NEEDN'T FILE BECAUSE THEY OWE NO US TAX AFTER TAKING FOREIGNINCOME EXEMPTIONS AND FOREIGNTAX CREDITS IN ONE STUDY OF 437 AMERICANS THOUGHT TO BE NONFILERS THE IRS COULDN'T FIND 261 IT COLLECTED ONLY 14 RETURNS AND 9595 BUT THE IRS IS EXPANDING ITS EFFORTS IT IS SEEKING THE COOPERATION OF US COMPANIES EMPLOYING AMERICANS OVERSEAS BRIEFS THE INTEREST RATE CHARGED ON OVERDUE TAXES WILL REMAIN 7 IN THE THIRD QUARTER IRS REVENUE RULING 9340 SAYS THE RATE PAID ON OVERDUE REFUNDS WILL REMAIN AT 6 MICHIGAN VOTERS HAVE REJECTED A SCHOOLFINANCING PLAN THAT WOULD HAVE CUT PROPERTY TAXES AND RAISED THE STATE'S SALES TAX TO 6 FROM 4 9306090043 930609 BUSINESS BRIEF TELEPORT GROUP PLANS FIBEROPTIC NETWORKS WITH CABLE TV FIRMS STATEN ISLAND NY TELEPORT COMMUNICATIONS GROUP SAID IT PLANS TO TEAM UP WITH 11 CABLE TELEVISION OPERATORS TO PROVIDE VOICE AND DATA TRANSMISSION SERVICES OVER FIBEROPTIC NETWORKS TELEPORT SAID THE PARTNERSHIPS WILL GIVE IT ACCESS TO FIBEROPTIC NETWORKS OWNED BY ITS CABLE PARTNERS IN SOME CITIES IN OTHER LOCATIONS TELEPORT WILL RELY ON THE CABLE COMPANIES' EXPERTISE TO BUILD NEW NETWORKS TELEPORT WON'T USE ITS PORTION OF THE FIBEROPTIC NETWORK TO TRANSMIT CABLE TELEVISION SERVICES TELEPORT WILL MANAGE THE CONSTRUCTION OPERATION SALES AND OVERALL ADMINISTRATION OF THE NETWORK IT SAID THE FIBEROPTIC NETWORKS ARE TO CONNECT LONGDISTANCE CARRIERS SUCH AS AMERICAN TELEPHONE & TELEGRAPH CO MCI CORP AND SPRINT CORP TO THEIR CUSTOMERS INFORMATION PROVIDERS SUCH AS ELECTRONIC WIRE SERVICES ALSO COULD USE THE NETWORKS TELEPORT SAID IT SIGNED LETTERS OF INTENT WITH A NUMBER OF NEW PARTNERS INCLUDING HYPERION TELECOMMUNCIATIONS INC A UNIT OF ADELPHIA COMMUNICATIONS CORP MACLEAN HUNTER CABLE TV A UNIT OF MACLEAN HUNTER LTD TIMES MIRROR CABLE TELEVISION A UNIT OF TIMES MIRROR CO VIACOM CABLE A UNIT OF VIACOM INC CLOSELY HELD CABLEVISION INDUSTRIES INC CROWN MEDIA INC OWNED BY CLOSELY HELD HALLMARK CARDS INC AND CLOSELY HELD INTERMEDIA PARTNERS OTHER JOINT VENTURE PARTNERS INCLUDE COX ENTERPRISES INC AND TELECOMMUNICATIONS INC WHICH EACH OWN ABOUT A 30 STAKE IN TELEPORT AND CONTINENTAL CABLEVISION INC AND COMCAST CORP WHICH EACH OWN ABOUT 20 THE NEW NETWORKS WILL BE DEVELOPED IN DETROIT MIAMI PHOENIX ST LOUIS AND PROVIDENCE RI IN ADDITION TELEPORT'S EXISTING NETWORKS IN BOSTON CHICAGO DALLAS HOUSTON SEATTLE SAN FRANCISCO SAN DIEGO AND LOS ANGELES WILL BE EXPANDED 9306090042 930609 ABREAST OF THE MARKET STOCKS RETREAT ON DROP IN DOLLAR UNEASE BEFORE FRIDAY'S PRICE DATA BY DAVE PETTIT AND THOMAS E WEBER STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WORRIES ABOUT INFLATION AND THE CONTINUED SLIDE IN THE VALUE OF THE DOLLAR SENT STOCKS INTO A RETREAT THE SCHEDULED RELEASE OF GOVERNMENT DATA ON PRODUCER PRICES FRIDAY AND ON CONSUMER PRICES NEXT TUESDAY HAS LEFT INVESTORS ON EDGE THE PAST TWO SESSIONS THOSE FEARS WERE HEIGHTENED YESTERDAY BY ANOTHER MOVE IN THE DOLLAR THIS MORNING TO POSTWORLD WAR II LOWS THE SLIDE PROMPTED INTERVENTION BY THE FEDERAL RESERVE IN THE FOREIGN EXCHANGE MARKETS BOTH OF THE ISSUES COULD SPUR THE FED TO PUSH UP SHORTTERM INTEREST RATES LOW RATES HAVE BEEN ONE OF THE MOST IMPORTANT PROPS FOR THE STOCK MARKET FOR MONTHS THE DOW JONES INDUSTRIAL AVERAGE WHICH LOST 1301 MONDAY SKIDDED 2159 OR 061 TO 351054 ENDING THE DAY NEAR ITS SESSION LOW DECLINING ISSUES SWAMPED ADVANCERS 1334 TO 621 ON THE BIG BOARD AND VOLUME TOTALED 238090000 SHARES COMPARED WITH 235580000 SHARES MONDAY THE STANDARD & POOR'S 500 STOCK INDEX LOST 298 OR 067 TO 44471 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX FELL 165 OR 067 TO 24515 AND THE DOW JONES EQUITY MARKET INDEX DECLINED 290 OR 068 TO 42116 INFLATIONARY PRESSURES ARE INCREASED BY A SLIDE IN THE DOLLAR BECAUSE A WEAK US CURRENCY INCREASES THE PRICES OF IMPORTED GOODS THOSE PRICE INCREASES MIGHT THEN BE MATCHED BY US PRODUCERS BUT JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO ALSO NOTED THAT EVEN WITHOUT THE INFLATIONARY IMPLICATIONS A WEAK DOLLAR COULD MEAN A FED TIGHTENING LIFTING RATES IS THE CENTRAL BANK'S MOST EFFECTIVE WAY TO SUPPORT THE DOLLAR HE SAID HUGH JOHNSON MARKET STRATEGIST AT FIRST ALBANY SAID AN UPTICK IN RATES WOULD BE PARTICULARLY TROUBLESOME NOW SOME INVESTORS ARE CONCERNED THAT THE FED WILL BE FORCED TO RAISE RATES EVEN THOUGH HE SAID THE ECONOMY IS STILL WEAK ALL OF THIS HAS SET OFF PROFITTAKING IN STOCKS THE MOST HIGHFLYING GROUPS LIKE THE CASINO OPERATORS HAVE BEEN HARDEST HIT CAESARS WORLD SLUMPED 1 1/2 TO 45 1/2 MIRAGE RESORTS INC DROPPED 2 7/8 TO 41 5/8 AND PROMUS COS SLUMPED 3 3/4 TO 39 1/4 SOME MAJOR BANK STOCKS STABILIZED AFTER TUMBLING FOR TWO STRAIGHT DAYS CHASE MANHATTAN CORP SWELLED 5/8 TO 29 1/4 CHEMICAL BANKING CORP CLIMBED 3/4 TO 36 1/4 AND CITICORP FINISHED AT 26 5/8 UP 1/4 BUT BANKAMERICA CORP LOST 3/4 TO 41 1/4 SPRINT CORP FELL 1 1/8 TO 29 7/8 THE KANSAS CITY MO TELECOMMUNICATIONS COMPANY SAID ITS PRESIDENT AND CHIEF OPERATING OFFICER JOHN P FRAZEE JR WILL RETIRE MR FRAZEE HAD SERVED AS CHAIRMAN AND CHIEF EXECUTIVE OF CENTEL CORP BEFORE ITS MERGER WITH SPRINT IN MARCH AMERICAN DEPOSITARY RECEIPTS OF BRITAIN'S VODAFONE GROUP PLC SLIPPED 2 1/8 TO 69 1/4 VODAFONE A CELLULAR TELEPHONE SERVICE PROVIDER SAID PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 WAS 4904 MILLION UP 19 FROM THE PREVIOUS YEAR WHILE REVENUE JUMPED 13 TRADERS SAID THE RESULTS WERE IN LINE WITH EXPECTATIONS BUT INVESTOR PROFITTAKING HURT THE STOCK TELEFONOS DE MEXICO ANOTHER ADR ISSUE GAINED 1 5/8 TO 46 5/8 THE MEXICAN STOCK EXCHANGE SAID TELMEX PURCHASED 15 MILLION OF ITS SERIES L SHARES AS PART OF AN EXTENDED BUYBACK PLAN ANNOUNCED EARLIER THIS WEEK ALSO YESTERDAY NATWEST SECURITIES RAISED ITS INVESTMENT RATING OF THE COMPANY TO BUY FROM ACCUMULATE DELUXE CORP SKIDDED 6 TO 39 5/8 FOLLOWING ITS ANNOUNCEMENT LATE MONDAY OF A RESTRUCTURING PLAN THE ST PAUL MINN COMPANY SAID IT WILL CLOSE 16 OF ITS 60 CHECKPRINTING PLANTS AND TAKE A 65 MILLION PRETAX CHARGE THIS QUARTER YESTERDAY PIPER JAFFRAY DOWNGRADED THE STOCK TO REASONABLY PRICED FROM ACCUMULATE RHONEPOULENC RORER SLID 1 1/8 TO 51 1/4 AFTER THE COLLEGEVILLE PA DRUG COMPANY SAID IT WILL RECORD A 77 MILLION CHARGE IN THE SECOND QUARTER TO COVER COSTS TIED TO LITIGATION AND A RESTRUCTURING BUT IT SAID A GAIN TO BE TAKEN IN THE PERIOD WILL MORE THAN OFFSET THE CHARGE CONCERNS THAT NEWSPRINT PRICES WILL SOON BEGIN TO FALL PROMPTED SHARES OF BOWATER INC TO TUMBLE 1 1/4 TO 19 7/8 BOWATER OF DARIEN CONN IS WIDELY CONSIDERED TO HAVE THE LARGEST EXPOSURE TO NEWSPRINT PRICING MOVES OF ANY US PAPERPRODUCTS COMPANY SHARES OF ANDREA ELECTRONICS CORP MADE ANOTHER DRASTIC SWING PLUNGING 12 1/4 TO 41 1/2 AFTER A GAIN MONDAY OF 16 1/4 ON THE AMERICAN EXCHANGE RECENT TRADING OF ANDREA BASED IN LONG ISLAND CITY NY HAS BEEN EXCEPTIONALLY VOLATILE ANDREA IS DEVELOPING NOISECONTROL TECHNOLOGY 9306090040 930609 ECONOMY CLINTON'S PLANS FOR SUMMER JOBS CRUMBLE CAPITOL HILL ACTION CUTS YOUTHS' FUNDS URBAN HOPES BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE WHITE HOUSE'S PLAN TO EXPAND AND ENRICH THE SUMMERJOBS PROGRAM FOR YOUTHS IS CRUMBLING THE PROGRAM WAS TO BE A CORNERSTONE OF THE CLINTON ADMINISTRATION'S INVESTMENT PACKAGE A ONESEASON JOBCREATION PLAN THAT THE PRESIDENT PERSONALLY INSISTED ON ENLARGING ADMINISTRATION OFFICIALS SAID THE PROGRAM WHICH FOR THE FIRST TIME WOULD HAVE SUPPLEMENTED WORK WITH TWO WEEKS OF EDUCATIONAL ENRICHMENT WAS MEANT IN SOME WAYS AS A SIGNAL TO THE AMERICAN PUBLIC THAT THINGS WOULD BE DIFFERENT UNDER THE CLINTON ADMINISTRATION BUT WHEN SENATE REPUBLICANS BLOCKED THE WHITE HOUSE STIMULUS PACKAGE THIS YEAR 1 BILLION OF ADDITIONAL SUMMER JOBS FUNDING SLIPPED AWAY YESTERDAY AS THE SENATE BEGAN MOVING TO ADOPT SUPPLEMENTAL SPENDING TO SUBSTITUTE FOR THE STIMULUS PACKAGE ONLY 200 MILLION OF SUMMERJOBS SPENDING WAS INCLUDED DOWN FROM 320 MILLION APPROVED BY THE HOUSE THE BOTTOM LINE THIS YEAR'S SUMMERJOBS PROGRAM WILL BE ONLY SLIGHTLY LARGER THAN THE BUSH ADMINISTRATION'S 102 BILLION EFFORT LAST YEAR AND THE EDUCATIONALENRICHMENT PIECE PROBABLY IS GONE ADMINISTRATION OFFICIALS SOUNDING MORE LIKE REPUBLICANS HAVE TAKEN TO URGING INDUSTRY TO INCREASE PRIVATESECTOR JOBS TO MAKE UP THE GAP AT A NEWS BRIEFING THIS MORNING LABOR SECRETARY ROBERT REICH AGAIN WILL ASK BUSINESS TO ESTABLISH MORE THAN THE ONE MILLION SUMMER POSITIONS THEY PROVIDED LAST YEAR HE WILL UNVEIL PUBLICSERVICE ADVERTISEMENTS TO PROD INDUSTRY GREAT EXPECTATIONS BUT THE PROGRAM IS NOW A FAR CRY FROM THE INITIATIVE THAT STARTED WITH SO MUCH FANFARE ACROSS THE COUNTRY CITIES THAT WERE EXPECTING HUGE FLOWS OF MONEY TO GENERATE PUBLICSERVICE JOBS ARE SCALING BACK THEIR PLANS IN NEW YORK CITY 100000 EAGER TEENAGERS SIGNED UP BEFORE CITY OFFICIALS STOPPED TAKING NAMES DUE TO DEMAND AT THE END OF APRIL SOME 65000 OF THE KIDS WERE TO HAVE GOTTEN PUBLICLY FINANCED JOBS NOW ONLY 39000 WILL SAYS NELSON SMITH VICE PRESIDENT OF THE NEW YORK CITY PARTNERSHIP OTHER CITIES ARE FACING THE SAME FATE IN LOS ANGELES OFFICIALS HAD EXPECTED TO RECEIVE 50 MILLION IN FEDERAL FUNDS TO PAY FOR 35000 TO 40000 JOBS SAYS EARL JONES DIRECTOR OF THE SUMMER YOUTH EMPLOYMENT TRAINING PROGRAM BUT NOW THE CITY PROBABLY WILL HAVE TO SETTLE FOR 184 MILLION THAT WILL PROVIDE FOR JUST 11000 TO 12000 SLOTS DOWN FROM THE 20000 THAT WERE FINANCED LAST YEAR AFTER RIOTS RIPPED THE CITY BECAUSE THEY ANTICIPATED BIG FUNDING INCREASES THIS YEAR UNDER PRESIDENT CLINTON MR JONES AND HIS STAFF HAD ARRANGED FOR AN EXTENSIVE ADVERTISING CAMPAIGN WITH BILLBOARDS AND PUBLIC SERVICE ANNOUNCEMENTS THEY ATTRACTED MORE THAN 25000 APPLICANTS BUT WITHOUT THE MONEY WE SAID WE HAD TO CUT BACK WE DIDN'T WANT TO CREATE ANY FALSE HOPES SAYS MR JONES IN CLEVELAND THERE WILL BE FUNDS FOR 4600 PUBLICLY FUNDED SUMMER JOBS THIS YEAR COMPARED WITH ABOUT 6000 LAST YEAR HOUSTON PLANS TO KEEP YOUTHS EMPLOYED FOR SIX WEEKS INSTEAD OF THE EIGHT WEEKS OF PRIOR YEARS THE BIG CITIES HAVE REALLY BEEN HIT HARD SAID PATRICIA IRVING PRESIDENT OF THE PHILADELPHIA PRIVATE INDUSTRIAL COUNCIL THAT CITY WAS EXPECTING 193 MILLION FROM THE FEDERAL GOVERNMENT BUT NOW THINKS IT WILL RECEIVE ABOUT A THIRD OF THAT IF THEY DON'T HAVE JOBS THEY'RE OUT THERE ON THE STREETS SAID JOSEPHINE NIEVES OF THE NEW YORK CITY DEPARTMENT OF EMPLOYMENT IT DEPRIVES YOUNG PEOPLE OF AN OPPORTUNITY THAT THEY VERY BADLY NEED IN MANY AREAS BUSINESSES HAVE BEEN SLOW TO PICK UP THE SLACK JOBS ARE COMING IN VERY SLOWLY SAYS EUNICE ELTON SAN FRANCISCO INDUSTRY COUNCIL STAFF DIRECTOR SEVERAL CITY OFFICIALS SAID IT'S A MORALE PROBLEM FOR BUSINESSES TO HIRE YOUTH FOR THE SUMMER WHEN THEY ARE LAYING OFF WORKERS IN ATLANTA MAYOR MAYNARD JACKSON HAS DECLARED AN EMERGENCY IN HIS CHALLENGE TO LOCAL BUSINESSES TO CREATE JOBS LAST YEAR CONGRESS PUSHED THROUGH AN EMERGENCY URBAN AID PACKAGE THAT WAS SIGNED BY PRESIDENT BUSH ON JUNE 22 SO CITY JOBS PLANNERS ARE ACCUSTOMED TO HAVING TO SCRAMBLE AT THE LAST MINUTE THIS YEAR THE ADMINISTRATION'S ATTEMPTS TO EXPAND THE SUMMERJOBS PROGRAM HAS BEEN A SERIES OF STUMBLES FIRST THE ADMINISTRATION ANNOUNCED THAT IT WAS CHALLENGING CORPORATE AMERICA TO CREATE 13 MILLION NEW SUMMER JOBS SHOCKED BUSINESS LEADERS QUICKLY SCRAMBLED TO CLARIFY THAT THEY WOULD AGREE TO CREATE 13 MILLION TOTAL JOBS AN ADDITION OF 300000 OVER LAST SUMMER THEN THE WHITE HOUSE HELD A MARCH RALLY AT WHICH PRESIDENT CLINTON WAS TO INSPIRE BUSINESS LEADERS TO DRASTICALLY EXPAND THEIR SUMMERJOBS HIRING BUT THE PRESIDENT'S FATHERINLAW GOT SICK FORCING VICE PRESIDENT GORE TO FILL IN THEN THE WHITE HOUSE PRESS OFFICE CLOSED THE EVENT TO THE MEDIA DIMINISHING ITS PUBLICRELATIONS IMPACT INSTEAD EXECUTIVES WERE ASKED TO MEET REPORTERS IN THE RAIN ON THE WHITE HOUSE LAWN TWO WEEKS LATER THE ADMINISTRATION TRIED AGAIN THIS TIME AT A SUBURBAN VIRGINIA HYATT HOTEL THINGS WENT MORE SMOOTHLY THE PRESIDENT WAS THERE UNTIL THE NEWS MEDIA SOUGHT TO ASK FOR DETAILS OF THE PROGRAM FROM LABOR SECRETARY ROBERT REICH AND EDUCATION SECRETARY RICHARD RILEY THE MICROPHONES WERE DEAD AND NONE OF THE ANSWERS COULD BE HEARD OUTSIDE THE IMMEDIATE CRUSH OF REPORTERS SQUEEZED AROUND THE TWO MEN AND WHILE THE NATIONAL ALLIANCE OF BUSINESS HAS SET UP AN 800NUMBER FOR COMPANIES TO VOLUNTEER JOBS THE LABOR DEPARTMENT TODAY WILL DIRECT CORPORATE CALLERS ELSEWHERE 9306090039 930609 SEC IS SEEKING DATA ON POLITICAL PAYMENTS IN BOND UNDERWRITING WASHINGTON THE SECURITIES AND EXCHANGE COMMISSION'S ENFORCEMENT DIVISION IS ASKING BOND UNDERWRITING HOUSES FOR DETAILED INFORMATION ON POLITICAL CONTRIBUTIONS OR OTHER PAYMENTS MADE TO STATE AND LOCAL OFFICIALS IN CONNECTION WITH MUNICIPAL BOND OFFERINGS WILLIAM MCLUCAS THE SEC'S TOP ENFORCEMENT OFFICER ASKED FIRMS TO PROVIDE DETAILS VOLUNTARILY ON POLITICAL CONTRIBUTIONS AND MUNICIPAL UNDERWRITINGS FROM JAN 1 1990 TO THE PRESENT THE REQUEST CAME IN A JUNE 4 LETTER SENT TO A NUMBER OF BOND UNDERWRITERS THE SEC OFFICIAL ASKED FOR RESPONSES BY JULY 12 MR MCLUCAS'S LETTER UNDERSCORES THE BROADENING OF AN OFFICIAL FOCUS ON THE ROLE OF POLITICAL MONEY IN THE MUNICIPAL BOND MARKET THAT STARTED WITH A FEDERAL INVESTIGATION INTO A 29 BILLION NEW JERSEY TURNPIKE BOND ISSUE AS REPORTED THE SEC AND THE JUSTICE DEPARTMENT HAD BEGUN LOOKING INTO THE NEW JERSEY MATTER AND THAT CASE HAS SPAWNED WIDERANGING QUESTIONS FROM KEY LAWMAKERS AS TO THE ADEQUACY OF REGULATION OF THE MUNI MARKET THE STAFF IS REQUESTING YOUR VOLUNTARY COOPERATION IN PART BECAUSE THE INFORMATION WHICH YOU PROVIDE WILL ASSIST IN ASSESSING THE EXTENT TO WHICH POLITICAL CONTRIBUTIONS MAY AFFECT THE OFFER SALE AND UNDERWRITING OF MUNICIPAL SECURITIES MR MCLUCAS SAID FIRMS WERE ASKED TO IDENTIFY BOND ISSUES WHERE THEY WERE LEAD OR COLEAD UNDERWRITERS OR FINANCIAL ADVISERS AND WHERE THE FIRM OR ANY OF ITS AFFILIATED PERSONS CONTRIBUTED DIRECTLY OR INDIRECTLY TO ELECTED OR APPOINTED OFFICIALS OF THE BOND ISSUING JURISDICTION THE PRECISE NUMBER OF FIRMS QUERIED BY THE SEC'S ENFORCEMENT UNIT COULDN'T BE ASCERTAINED MARKET SOURCES PUT THE NUMBER OF FIRMS RECEIVING MR MCLUCAS'S LETTER AT ABOUT 30 THE AGENCY ALSO REQUESTED UNDERWRITERS TO IDENTIFY ANY INVESTMENTS MADE DIRECTLY OR INDIRECTLY IN ANY ENTERPRISE LINKED TO POLITICIANS AND APPOINTED OFFICIALS CAPABLE OF INFLUENCING THE MUNICIPAL UNDERWRITING BUSINESS 9306090038 930609 ECONOMY CLINTON AGREES TO LOOK FOR ALTERNATIVES TO PROPOSED BTUBASED ENERGY TAX BY JACKIE CALMES AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON THE CLINTON ADMINISTRATION HAS AGREED TO LOOK FOR ALTERNATIVES TO THE PRESIDENT'S PROPOSED BTUBASED ENERGY TAX BUT IT WAS FAR FROM CLEAR WHAT THAT CHANGE WILL MEAN IN PRACTICE THAT RETREAT SIGNALED LAST NIGHT BY TREASURY SECRETARY LLOYD BENTSEN COMES A DAY AFTER A WARNING TO THE PRESIDENT FROM SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE AND SENATE FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY THE TWO MEN TOLD PRESIDENT CLINTON DURING A WHITE HOUSE MEETING THAT HIS DEFICITREDUCTION PROGRAM WAS IN DANGER OF BEING KILLED IN THE SENATE DUE TO OPPOSITION TO HIS PROPOSED ENERGY TAX ON THE HEAT CONTENT OF FUEL AS MEASURED IN BRITISH THERMAL UNITS NEVERTHELESS SENATE LEADERS WERE TAKEN BY SURPRISE WHEN MR BENTSEN MADE HIS REMARKS AFTER A DAY RIFE WITH SPECULATION AT THE CAPITOL SECRETARY BENTSEN DECLARED ON PBS'S MACNEIL/LEHRER NEWSHOUR LAST EVENING THAT HE WAS CONFIDENT THAT THE ENERGY TAX THAT EMERGES FROM THE SENATE WON'T BE BASED ON BTUS I DON'T THINK YOU'RE GOING TO SEE THAT HE SAID THE ADMINISTRATION STILL IS COMMITTED TO ADOPTING SOME FORM OF A BROADBASED LEVY ON ENERGY AND CLINTON OFFICIALS SIGNALED DAYS AGO THAT THEY WERE WILLING TO CUT THE ENERGY TAX WHICH WOULD RAISE ABOUT 70 BILLION OVER FIVE YEARS BY AS MUCH AS A THIRD THEY'VE ALSO AGREED TO EXEMPTIONS THAT WOULD LESSEN THE IMPACT ON A HOST OF DIFFERENT INDUSTRIES AT THIS POINT THEN A CHANGE IN NOMENCLATURE COULD PROVE TO BE MORE STYLE THAN SUBSTANCE NONETHELESS THE MOVE COULD PROVIDE AN ESCAPE HATCH FOR SEN DAVID BOREN D OKLA A PIVOTAL VOTE ON THE SENATE FINANCE COMMITTEE WHO HAS SAID HE WON'T VOTE FOR ANYTHING CALLED A BTU TAX LIKEWISE IT COULD SECURE SUPPORT FROM SEN JOHN BREAUX D LA ANOTHER OILSTATE MEMBER ON THE COMMITTEE WHAT MIGHT REPLACE THE BTU TAX AND THE ALREADY AGREEDUPON EXEMPTIONS WASN'T MADE CLEAR HOWEVER MR BENTSEN SAID THE ADMINISTRATION STILL WANTS TO SEE A LEVY THAT WOULD PROMOTE CONSERVATION LESSEN US DEPENDENCE ON FOREIGN OIL AND HELP PARE THE BUDGET DEFICIT HE ALSO SAID ANY NEW FORM OF THE ENERGY TAX SHOULD FOCUS MORE ON CONSUMPTION AND LESS ON PRODUCTION THE EXACT MEANS OF GETTING THERE HE SUGGESTED WOULD BE LEFT UP TO THE FINANCE COMMITTEE ONE CLINTON OFFICIAL SAID LAST NIGHT THAT THE ADMINISTRATION WOULDN'T PUT FORTH A FORMAL ALTERNATIVE BUT MERELY WANTED TO GIVE THE COMMITTEE THE FLEXIBILITY IT NEEDS TO PASS THE TAX THE COMMITTEE STAFF HAS BEEN LOOKING FOR AN ALTERNATIVE THAT WOULD BE A SIMPLER MORE DIRECT WAY OF TAXING CONSUMERS' ENERGY USE WHETHER AT THE GASOLINE PUMP ON UTILITY BILLS OR OTHER SOURCES ONE ALTERNATIVE TO A BTU TAX MIGHT BE A SALES TAX ON ENERGY BASED ON ITS PRICE BUT BECAUSE SUCH AN APPRCH WOULD TREAT SOCALLED CLEAN AND DIRTY FUELS EVENLY SWITCHING TO THIS TYPE OF TAX WOULD ANGER ENVIRONMENTALISTS ANOTHER OPTION IS A TAX BASED ON THE VOLUME OF ENERGY SOLD YET ANOTHER IDEA RAISED BY SEN BREAUX ON THE MACNEIL/LEHRER PROGRAM LAST NIGHT WOULD BE TO LIMIT THE TAX TO FUELS USED IN TRANSPORTATION OTHERS HAVE CALLED FOR A GASOLINE TAX THE ADMINISTRATION HAS SAID IT WOULDN'T SUPPORT THAT THOUGH CONSUMERS ULTIMATELY MIGHT NOT RECOGNIZE THE DIFFERENCE BETWEEN A GASOLINE TAX AND SOME OTHER ENERGY LEVY AS MR BENTSEN REITERATED ANY REDUCTIONS IN THE SIZE OF THE ENERGY TAX WILL BE MADE UP WITH SPENDING CUTS ONE TARGET HE SAID ON THE PBS PROGRAM WILL BE MEDICARE THE FEDERAL HEALTH PROGRAM FOR THE ELDERLY AND DISABLED BUT HE CAUTIONED AGAINST CUTTING TOO MUCH FROM MEDICARE NOW GIVEN THAT THE ADMINISTRATION HOPES TO USE ADDITIONAL MEDICARE SAVINGS TO HELP FUND ITS OVERHAUL OF THE NATION'S HEALTHCARE SYSTEM LAST WEEKEND MR MOYNIHAN SUGGESTED THAT PROJECTED SPENDING FOR MEDICARE MIGHT BE CUT AS MUCH AS 35 BILLION ON TOP OF THE 50 BILLION ALREADY PROPOSED IN MR CLINTON'S BUDGET PACKAGE THAT OVERTURE TO CONSERVATIVES HOWEVER HAS PROVOKED OPPOSITION FROM MORELIBERAL SENATORS SEN JAY ROCKEFELLER D WVA A FINANCE PANEL MEMBER SAID YESTERDAY THAT HE WOULD OPPOSE ANY PACKAGE THAT CUTS MEDICARE THAT MUCH AND HE BRISTLED AT THE THOUGHT THAT SUCH CUTS WOULD BE NEEDED TO APPEASE SEN BOREN REFLECTING THE ANIMOSITY THAT MANY SENATE DEMOCRATS HARBOR FOR THE OKLAHOMA RENEGADE KERRMCGEE CAN'T RUN THE UNITED STATES GOVERNMENT ANYMORE SEN ROCKEFELLER SNAPPED REFERRING TO THE OKLAHOMA CITYBASED ENERGY COMPANY THAT SEN BOREN SUPPORTS ANOTHER FINANCE COMMITTEE MEMBER SEN BILL BRADLEY D NJ SAID HE WOULD SEEK TO KILL VARIOUS TAX INCENTIVES IN THE BILL RATHER THAN CUT MEDICARE HE TARGETED THE PRESIDENT'S PROPOSALS GIVING TAX RELIEF TO CORPORATIONS THAT PAY THE ALTERNATIVE MINIMUM TAX RESTORING A LUCRATIVE DEDUCTION FOR THE REAL ESTATE INDUSTRY AND EXPANDING A WRITEOFF FOR SMALL BUSINESSES' EQUIPMENT PURCHASES MEANWHILE SENATE GOP LEADER BOB DOLE OF KANSAS AND OTHER REPUBLICAN SENATORS INDICATED THE PRESIDENT COULDN'T MODIFY HIS PACKAGE ENOUGH TO WIN ANY REPUBLICAN SUPPORT I THINK WE NEED TO START OVER MR DOLE SAID WHO PROMISED A GOP ALTERNATIVE THAT WOULD HAVE NO NEW TAXES SEN PHIL GRAMM R TEXAS SAID HE ALSO WOULD OFFER AMENDMENTS TO THE BILL THAT WOULD AMONG OTHER THINGS COMPLETELY SCRAP THE ENERGY TAX AS WELL AS A PROVISION SUBJECTING A LARGER PORTION OF SOCIAL SECURITY BENEFITS TO TAXATION SEN DOLE SAID HE DIDN'T BELIEVE SEN MITCHELL'S ASSERTIONS THAT HE HAD THE 51 VOTES NEEDED TO PASS THE BILL OUT OF THE SENATE THAT'S WHAT I'D SAY TOO IF I WAS MAJORITY LEADER SEN DOLE SAID 9306090037 930609 TECHNOLOGY MICROSOFT OFFERS SOFTWARE TO LINK OFFICE MACHINES BY SHARON MASSEY STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP SEEKING DOMINION OVER A VAST NEW ELECTRONIC TERRITORY WILL INTRODUCE SOFTWARE TODAY TO IMPOSE A COMMON LANGUAGE ON OFFICE EQUIPMENT AND MAKE IT EASIER FOR PHOTOCOPIERS FAXES TELEPHONES AND OTHER MACHINES TO TALK TO EACH OTHER THE NEW SOFTWARE CALLED MICROSOFT AT WORK IS EXPECTED TO TURN UP IN NEW OFFICE EQUIPMENT STARTING LATE THIS YEAR XEROX CORP NORTHERN TELECOM LTD MCCAW CELLULAR COMMUNICATIONS INC RICOH CORP MURATA MACHINERY LTD HEWLETTPACKARD CO AND DOZENS OF OTHER OFFICEEQUIPMENT MAKERS HAVE PLEDGED TO USE MICROSOFT'S SOFTWARE THIS IS A TREMENDOUS BUSINESS OPPORTUNITY BECAUSE IT WILL BE FAR EASIER TO MOVE INFORMATION IN AN OFFICE SAID WILLIAM GATES MICROSOFT'S CHAIRMAN MR GATES SAID MICROSOFT'S FORAY INTO OFFICE EQUIPMENT REPRESENTS A MILESTONE FOR THE COMPANY WHICH HAS BECOME THE WORLD'S LARGEST SOFTWARE SUPPLIER THROUGH SALES FOR PERSONAL COMPUTERS BUT HE CAUTIONED THAT THE SIZE OF THE MARKET FOR AT WORK AND SUCH SOFTWARE IS NOTHING LIKE THE MAGNITUDE OF THE PC SOFTWARE MARKET ANALYSTS DON'T KNOW ENOUGH ABOUT THE PLANS OF OFFICEEQUIPMENT MAKERS TO GIVE A SOUND ESTIMATE OF THE NEW MARKET'S SIZE BUT AN EXECUTIVE FAMILIAR WITH MICROSOFT'S INTERNAL FORECASTS SAID IT WON'T EXCEED 500 MILLION ANNUALLY IN THE NEXT FIVE YEARS THAT'S SMALL BY COMPARISON WITH THE ESTIMATED 4 BILLION MARKET FOR PC SOFTWARE BUT IT IS BIG ENOUGH FOR COMPANIES SUCH AS WORDPERFECT CORP CALERA RECOGNITION SYSTEMS INC AND DOZENS OF OTHER PC SOFTWARE COMPANIES TO HAVE STARTED WORK ON ADDON APPLICATIONS PROGRAMS TO PROVIDE ENHANCED CONTROLS OVER OFFICE EQUIPMENT A BIG DRAW FOR THESE SOFTWARE MAKERS IS THAT AT WORK IS COMPATIBLE WITH MICROSOFT'S WINDOWS PROGRAM WHICH RUNS IBMCOMPATIBLE PCS EARLIER FAILURES EVEN WITH THE TIEIN TO WINDOWS SOME PEOPLE QUESTION WHETHER CUSTOMERS WILL FLOCK TO SUPERNETWORKED OFFICE EQUIPMENT I'M SKEPTICAL THAT THIS IS NECESSARILY THE WAY USERS WANT TO INTERACT WITH OFFICE MACHINES SAID CASEY DWORKIN ANALYST WITH PERSONAL TECHNOLOGY RESEARCH INC WALTHAM MASS IT MAY OR MAY NOT PLAY WELL IN THE MARKET INDEED SEVERAL HIGHPROFILE EFFORTS AT OFFICE AUTOMATION HAVE FAILED IN THE PAST INCLUDING A DISASTROUS BID AT CREATING THE PAPERLESS OFFICE BY WANG LABORATORIES INC BUT MAKERS OF OFFICE EQUIPMENT SAY THINGS WILL BE DIFFERENT THIS TIME PARTLY BECAUSE MICROSOFT'S APPROACH ISN'T AN ATTEMPT TO IMPOSE THE PAPERLESS OFFICE BUT TO MORE EFFECTIVELY LINK THE WORLD OF PAPER DOCUMENTS WITH THE DIGITAL WORLD OF ELECTRONIC FILES MOREOVER THE APPROACH PUTS A PREMIUM ON COMMON STANDARDS UNLIKE OTHER EFFORTS THE COMPANIES ARE DEFINING A NEW CLASS OF SYSTEMS THAT CAN DO THINGS YOU JUST CAN'T DO TODAY SAYS PAUL RICCI PRESIDENT OF XEROX'S ADVANCED OFFICE DOCUMENT SERVICES DIVISION FOR INSTANCE IF ALL GOES ACCORDING TO PLAN A SIMPLE PUSH OF A BUTTON WILL TURN WHAT'S ON THE COMPUTER SCREEN INTO HUNDREDS OF COPIES OR A FAX MACHINE MIGHT SHIP ITS INFORMATION TO THE PCS OF DOZENS OF PEOPLE WHO NEED IT ALL AT ONCE AND PERHAPS UPDATE A SPECIFIC COMPUTER PROGRAM SMOOTHER COMMUNICATIONS BETWEEN OFFICE EQUIPMENT IS NOT ONLY THE RESULT OF SOFTWARE MOST FAX MACHINES COPIERS AND OTHER EQUIPMENT TODAY CONTAIN MICROPROCESSORS ELECTRONIC TRAFFIC COPS AT WORK TAKES ADVANTAGE OF THEIR POWER THOUGH INITIALLY IT WILL RUN ONLY ON INTEL CORP'S MICROPROCESSORS OR COMPATIBLE CHIPS USERS OF FAX MACHINES AND OTHER EQUIPMENT ARE HUNGERING FOR THE KIND OF COMMUNICATIONS CAPABILITY OFFERED BY SOPHISTICATED COMPUTER NETWORKS WHEN SHE RECEIVES CONFIDENTIAL FAXES I HAVE TO STAND BY THE MACHINE SAID SHARON BIRKS AN ADMINISTRATIVE AIDE AT NATIONAL SEMICONDUCTOR CORP IF I CAN GET MY FAX ALONE THAT WOULD MAKE ANYONE'S LIFE EASIER A NEW GENERATION OF OFFICE EQUIPMENT DESIGNED TO BE CONTROLLED BY PCS IS IN THE WORKS BUT ISN'T NECESSARILY MADE FOR NETWORKING BESIDES A COMMON SET OF SOFTWARE CONTROLS OR OPERATING SYSTEM NEW MODELS WILL REQUIRE A TOUCH SCREEN OR PANEL THAT WILL DISPLAY SOFTWARE COMMANDS AGREEING ON COMMON CONTROL STANDARDS SUCH AS MICROSOFT AT WORK SHOULD MAKE IT EASIER TO CUSTOMIZE OFFICE NETWORKS MR GATES ENVISIONS THAT SOFTWARE SUPPLIERS WILL BE ABLE TO SELL PACKAGES AIMED AT HOSPITALS LAW FIRMS ACCOUNTANTS AND OTHER VERTICAL MARKETS ANYTHING OF BROAD USE HOWEVER WE WILL BUILD INTO THE BASIC SOFTWARE MR GATES SAID AS PART OF MICROSOFT'S SUPPLY ARANGEMENT OFFICEEQUIPMENT MAKERS WILL AGREE TO DISPLAY THE MICROSOFT AT WORK LOGO ON THEIR DEVICES THE COMPANY WILL RECEIVE A ROYALTY FOR USE OF THE SOFTWARE WHICH MR GATES DESCRIBED AS A SMALL PERCENTAGE OF THE EQUIPMENT'S PRICE THAT SMALL PERCENTAGE ANALYSTS SAY WILL HELP MICROSOFT SUSTAIN ITS PHENOMENAL GROWTH OF THE PAST DECADE WHEN IT ROUGHLY DOUBLED IN SIZE EVERY YEAR THE BIG ISSUE ON THE STREET IS HOW DOES MICROSOFT SUSTAIN ITS GROWTH RATE SAID DAVID READERMAN AN ANALYST AT LEHMAN BROTHERS HOW WELL MICROSOFT CAPTURES NEW ELECTRONIC PLATFORMS LIKE OFFICE EQUIPMENT AND CABLE BOX CONTROLLERS WILL PROVIDE THE ANSWER SEPARATELY XEROX AND MICROSOFT YESTERDAY ANNOUNCED A PARTNERSHIP TO DEVELOP TECHNOLOGY THAT WILL ENABLE COMPUTERS AND COPYING MACHINES TO INTERACT WITH EACH OTHER AND EASILY CHANGE DOCUMENTS BACK AND FORTH BETWEEN PAPER AND ELECTRONIC VERSIONS LAURIE HAYS AND G PASCAL ZACHARY CONTRIBUTED TO THIS ARTICLE 9306090035 930609 INTERNATIONAL BRIEF BRITISH TELECOMMUNICATIONS PLC FIRM SHOULDN'T BE BROKEN INTO UNITS REGULATORS SAY BRITISH REGULATORS RECOMMENDED THAT BRITISH TELECOMMUNICATIONS PLC NOT BE BROKEN UP INTO SEPARATE UNITS BUT SHOULD HAVE SEPARATE ACCOUNTING FOR ITS NETWORK AND RETAIL OPERATIONS THE RECOMMENDATIONS BY THE OFFICE OF TELECOMMUNICATIONS ARE IN A REPORT ON HOW BT SHOULD ALLOW INTERCONNECTION OF OTHER TELEPHONE COMPANIES TO ITS NETWORK OFTEL AS THE AGENCY IS KNOWN SAID BT SHOULD SEPARATE ITS ACCOUNTING FOR RETAIL USERS AND FOR NETWORK USERS AND SHOULDN'T CHARGE NETWORK USERS SIGNIFICANTLY MORE THAN IT CHARGES RETAIL USERS ALSO OFTEL SAID BT SHOULD PUBLISH ITS COSTS AND CHARGES AND SHOULD PROVIDE SUFFICIENT INFORMATION FOR NETWORK USERS TO HAVE CONFIDENCE IN THE ARRANGEMENTS THE UK GOVERNMENT WHICH IS PREPARING TO SELL OFF BT HAS FREED COMPETITION AND IS LICENSING OTHER CARRIERS TO PROVIDE LOCAL NATIONAL AND INTERNATIONAL TELEPHONE NETWORKS IN RESPONSE TO THE RECOMMENDATIONS BT SAID THAT WE ACCEPT THE NEED FOR A CLEARLY ESTABLISHED SET OF INTERCONNECT PRICES WHICH ARE PUBLISHED SO THAT OPERATORS CAN RELIABLY PLAN THEIR BUSINESSES WITH THIS IN MIND WE HAVE MADE OUR OWN PROPOSALS TO OFTEL 9306090034 930609 PAINEWEBBER UNIT WITHDRAWS LAWSUIT AGAINST 2 EXAIDES BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK A PAINEWEBBER GROUP INC UNIT SUDDENLY WITHDREW A HIGHPROFILE LAWSUIT FILED IN APRIL AGAINST TWO FORMER SENIOR OFFICIALS WHOM THE FIRM HAD ACCUSED OF LURING AWAY CLIENTS AND EMPLOYEES PAINEWEBBER'S MITCHELL HUTCHINS INSTITUTIONAL INVESTORS INC HAD ALLEGED THE FORMER OFFICIALS STEPHEN E CANTER AND EMAD A ZIKRY CONSPIRED TO MISAPPROPRIATE PROPRIETARY AND CONFIDENTIAL CLIENT INFORMATION AND PASSED IT TO THEIR NEW EMPLOYER THE US UNIT OF KLEINWORT BENSON GROUP PLC THE LONDONBASED INVESTMENT BANK BUT IN A SETTLEMENT AGREEMENT WITH MESSRS CANTER AND ZIKRY MITCHELL HUTCHINS ACKNOWLEDGED THAT AFTER COMPLETING EXPEDITED PRETRIAL DISCOVERY PROCEEDINGS IT HAS DISCOVERED NO EVIDENCE THAT EITHER MR CANTER OR MR ZIKRY WHILE IN THE EMPLOY OF MITCHELL HUTCHINS SOLICITED ANY CLIENT OR ANY EMPLOYEE OF MITCHELL HUTCHINS TO LEAVE MITCHELL HUTCHINS OR TOOK ANY PROPERTY BELONGING TO THE PAINEWEBBER UNIT THE OUTCOME IS AN EMBARRASSMENT TO PAINEWEBBER THE NATION'S FIFTHLARGEST BROKERAGE FIRM WITH MUCH FANFARE THE PAINEWEBBER UNIT FILED THE SUIT IN LATE APRIL IN A NEW YORK STATE COURT FOLLOWING A DEFECTION OF PORTFOLIO MANAGERS AND EXECUTIVES AT MITCHELL HUTCHINS'S BOND OPERATIONS AT LEAST SEVEN EXECUTIVES AND PORTFOLIO MANAGERS INCLUDING MESSRS CANTER AND ZIKRY AS WELL AS SEVEN PORTFOLIO ASSISTANTS AND OTHER PERSONNEL QUIT THE MONEYMANAGEMENT UNIT IN APRIL A PAINEWEBBER SPOKESMAN SAID WE ARE VERY SATISFIED WITH THE SETTLEMENT THE TERMS OF WHICH ARE CONFIDENTIAL THIS MEANS THAT KLEINWORT BENSON CAN GET ABOUT ITS BUSINESS IN THE US WHICH IS WHAT IT INTENDED TO DO IN THE FIRST INSTANCE AND HOPES TO CONTINUE TO DO SAID DANIEL A POLLACK OF POLLACK & KAMINSKY A NEW YORK LAW FIRM THAT REPRESENTED THE DEFENDANTS KLEINWORT BENSON WAS ALSO NAMED IN THE SUIT MESSRS CANTER AND ZIKRY WERE HIRED TO JOINTLY HEAD THE NORTH AMERICAN INVESTMENTMANAGEMENT BUSINESS OF KLEINWORT BENSON INTERNATIONAL INVESTMENT LTD WHICH MANAGES ABOUT 600 MILLION FOR US INSTITUTIONAL CLIENTS BEFORE JOINING KLEINWORT MR CANTER WAS PRESIDENT OF THE PAINEWEBBER UNIT AND MR ZIKRY WAS CHIEF INVESTMENT OFFICER THE EXECUTIVES WERE PAID 1 MILLION AND 900000 IN 1992 SALARY AND BONUS RESPECTIVELY ACCORDING TO PAPERS FILED IN THE CASE TO STEM FURTHER FALLOUT IN ITS MONEYMANAGEMENT BUSINESS MITCHELL HUTCHINS HAS ASKED ITS FOUR PORTFOLIOMANAGEMENT HEADS TO SIGN AGREEMENTS TYING THEM TO THE FIRM FOR 18 MONTHS IN EXCHANGE FOR AN UNDISCLOSED AMOUNT OF MONEY PEOPLE FAMILIAR WITH THE FIRM SAID 9306090033 930609 ECONOMY FOREIGN INVESTMENT IN US DECLINED BY 47 IN 1992 BY ALAN YONAN SPECIAL TO THE WALL STREET JOURNAL WASHINGTON FOREIGN INVESTORS' SPENDING TO ACQUIRE OR ESTABLISH BUSINESSES IN THE US IN 1992 FELL FOR THE FOURTH STRAIGHT YEAR REFLECTING WEAK ECONOMIC CONDITIONS IN THE US AND ABROAD THE COMMERCE DEPARTMENT REPORTED FOREIGN DIRECT INVESTMENT IN THE US FELL 47 IN 1992 TO 135 BILLION THE LOWEST LEVEL SINCE 809 BILLION IN 1983 THE REPORT SAID AFTER PEAKING AT 7269 BILLION IN 1988 FOREIGN INVESTMENT FELL BY 2 IN 1989 7 IN 1990 AND 61 IN 1991 THE SHARPEST DECLINES OCCURRED DURING THE PAST TWO YEARS AMID POOR BUSINESS CONDITIONS IN THE US THE DEPARTMENT SAID IN AN ANNUAL REPORT THE OTHER MAJOR FACTOR TEMPERING FOREIGN INVESTMENT WAS ECONOMIC MALAISE IN COUNTRIES THAT HAVE THE LARGEST INVESTMENT PRESENCE IN THE US JAPAN AND MEMBERS OF THE EUROPEAN COMMUNITY THE RECESSIONARY CONDITIONS WHICH HAVE CONSTRAINED POTENTIAL INVESTORS' ABILITY TO FINANCE INVESTMENTS AND THE NEED BY INVESTORS TO REBUILD BALANCE SHEETS AND IMPROVE CAPITALIZATION RATIONS MAY HAVE CONTRIBUTED TO REDUCE OUTLAYS FOR NEW OVERSEAS VENTURES THE REPORT SAID IN ADDITION INVESTMENT FUNDS MAY HAVE BEEN DIVERTED FROM THE US BY INCREASED ECONOMIC INTEGRATION WITHIN THE EC MARKETORIENTED CHANGES IN EASTERN EUROPE RAPID ECONOMIC GROWTH IN PARTS OF EAST ASIA AND AN IMPROVED INVESTMENT CLIMATE IN PARTS OF LATIN AMERICA THE REPORT SAID THAT TOTAL ASSETS OF US BUSINESSES ACQUIRED OR ESTABLISHED BY FOREIGN DIRECT INVESTORS TOTALED 309 BILLION IN 1992 DOWN FROM 1521 BILLION IN 1991 BUSINESSES ACQUIRED OR ESTABLISHED BY FOREIGNERS EMPLOYED 120000 WORKERS LAST YEAR AND OWNED 121000 ACRES OF LAND BY COUNTRY DECLINES IN OUTLAYS WERE THE LARGEST FOR FRANCE AND JAPAN THE LARGEST SINGLE INVESTOR IN US BUSINESSES THE ONLY COUNTRIES WITH SIGNIFICANT INCREASES IN INVESTMENT WERE MEXICO AND VENEZUELA THE DEPARTMENT SAID BY INDUSTRY THE LARGEST DECLINES WERE IN BANKING DOWN 89 TO 55 MILLION INSURANCE DOWN 88 TO 251 MILLION MACHINERY MANUFACTURING DOWN 86 TO 678 MILLION AND RETAIL TRADE DOWN 79 TO 224 MILLION FOREIGN INVESTMENT IN MANUFACTURING OF ALL TYPES FELL 54 TO 527 BILLION 9306090032 930609 CORRECTIONS & AMPLIFICATIONS KLH ENGINEERING GROUP INC OF DENVER TENDERED A CHECK FOR 1150000 TO ITS PRIMARY LENDER IN AN ARTICLE YESTERDAY THE AMOUNT WAS MISSTATED AS 15 MILLION 9306090031 930609 WHAT'S NEWS WORLDWIDE CLINTON'S PLANS ARE CRUMBLING FOR AN EXPANDED SUMMERJOBS PROGRAM DESPITE THE PRESIDENT'S ORIGINAL GOAL OF MAKING THE JOBCREATION PROGRAM FOR YOUTHS A CORNERSTONE OF HIS INVESTMENT STRATEGY THE PROPOSAL HAS BEEN DRASTICALLY ALTERED AS THE RESULT OF SPENDING CUTS APPROVED BY CONGRESS CITIES THAT EXPECTED HUGE AMOUNTS OF MONEY FOR PUBLICSERVICE JOBS THIS SUMMER ARE REVAMPING THEIR PLANS THE BOTTOM LINE THIS YEAR'S SUMMERJOBS PROGRAM WILL BE ONLY SLIGHTLY LARGER THAN LAST YEAR'S 102 BILLION EFFORT THE ADMINISTRATION WANTS INDUSTRY TO HELP MAKE UP THE SHORTFALL AT A BRIEFING TODAY LABOR SECRETARY REICH AGAIN WILL ASK COMPANIES TO ESTABLISH MORE THAN THE ONE MILLION JOBS THEY PROVIDED LAST YEAR CLINTON IS HESITATING ABOUT NAMING INTERIOR SECRETARY BABBITT TO THE SUPREME COURT AS FORCES ON BOTH THE POLITICAL RIGHT AND THE LEFT VOICE THEIR OBJECTIONS ENVIRONMENTAL GROUPS WANT BABBITT TO REMAIN AT THE INTERIOR DEPARTMENT HAITI'S PRIME MINISTER BAZIN RESIGNED AND EXILED PRESIDENT ARISTIDE SAID HE HOPED THE NEWS COULD MEAN HIS RETURN TO HAITI WITHIN THE NEXT FEW WEEKS OR EVEN DAYS THE MILITARY WHICH APPOINTED BAZIN A YEAR AGO REMAINED FIRMLY IN CONTROL BUT DIDN'T ANNOUNCE A NEW GOVERNMENT MILITARY LEADERS HAVE REFUSED TO RESTORE DEMOCRACY THE US GOVERNMENT WAS ORDERED TO IMMEDIATELY RELEASE MORE THAN 150 HAITIANS HELD AT A US NAVAL BASE IN CUBA A FEDERAL JUDGE IN NEW YORK SAID THE US GOVERNMENT'S POLICY OF INDEFINITELY HOLDING THE HAITIANS NEARLY ALL OF WHOM HAVE TESTED POSITIVE FOR THE AIDS VIRUS IS UNCONSTITUTIONAL AND VIOLATES THEIR DUE PROCESS RIGHTS PEACE MEDIATOR LORD OWEN SAID THAT EUROPE SHOULD STOP COUNTING ON US GROUND TROOPS TO PROTECT BOSNIA'S MUSLIMS AND HELP IMPLEMENT A PEACE PLAN HIS COMMENTS UNDERSCORED CONTINUED DIFFERENCES OVER BOSNIA ON THE EVE OF TALKS BETWEEN SECRETARY OF STATE CHRISTOPHER AND EUROPEAN COMMUNITY FOREIGN MINISTERS IN LUXEMBOURG BRITISH TROOPS WITNESSED MUSLIM FORCES FIRING MACHINE GUNS AT FLEEING CROAT CIVILIANS IN CENTRAL BOSNIA UN MILITARY SOURCES SAID THEY SAID THE UN SOLDIERS HAD ORDERED THE MUSLIM TROOPS TO LAY DOWN THEIR WEAPONS TO AVERT A MASSACRE THE INCIDENT OCCURRED NOT FAR FROM TRAVNIK CAPTURED BY MUSLIM FORCES YESTERDAY THE VICHY REGIME'S POLICE CHIEF WAS SHOT TO DEATH IN HIS PARIS APARTMENT AND POLICE ARRESTED A MAN WHO SAID HE ACTED AS AN AGENT OF GOD THE SLAYING OF 84YEAROLD RENE BOUSQUET OCCURRED ON THE VERGE OF AN EXPECTED TRIAL FOR THE FORMER NAZI COLLABORATOR ACCUSED OF SENDING THOUSANDS OF FRENCH JEWS TO THEIR DEATHS IN WORLD WAR II THE AIR FORCE CONSIDERS ALLEGATIONS THAT ONE OF ITS GENERALS RIDICULED CLINTON AT AN OFFICIAL FUNCTION A SERIOUS MATTER THAT MUST BE INVESTIGATED A PENTAGON SPOKESMAN SAID MAJ GEN HAROLD CAMPBELL REPORTEDLY MADE THE COMMENTS IN A MAY 24 SPEECH GERMAN ARSONISTS ATTACKED HOUSES OCCUPIED BY FOREIGNERS IN FOUR DIFFERENT PARTS OF THE COUNTRY AND 14 TURKS WERE HOSPITALIZED AUTHORITIES SAID MEANWHILE A REGIONAL CHIEF OF AN ANTIEXTREMIST WATCHDOG AGENCY ACKNOWLEDGED THAT HIS OFFICIALS WERE LARGELY HELPLESS IN TRYING TO STOP RACIST ATTACKS A BOMB EXPLODED ON A ROAD TO EGYPT'S GIZA PYRAMIDS KILLING AN EGYPTIAN AND INJURING 14 OTHER PEOPLE INCLUDING FIVE BRITISH TOURISTS THE BLAST APPEARED TO BE THE WORK OF MUSLIM EXTREMISTS OFFICIALS SAID YELTSIN'S ALLIES SUGGESTED THE RUSSIAN LEADER MIGHT AGREE TO DELAY THE ADOPTION OF A CONSTITUTION AND INSTEAD HELP DRAFT A TEMPORARY MEASURE DEFINING LEGISLATIVE AND EXECUTIVE POWERS THE KHMER ROUGE VOWED THAT IT WOULD RENEW FIGHTING IF THE PHNOM PENH GOVERNMENT DOESN'T YIELD POWER TO THE WINNER OF CAMBODIA'S ELECTIONS THE REBELS HINTED THEY WOULD BACK PRINCE RANARIDDH'S PARTY WHICH WON LAST MONTH'S VOTE ARAB STATES AND ISRAEL ACCEPTED A US INVITATION TO RESUME MIDDLE EAST PEACE NEGOTIATIONS IN WASHINGTON ON TUESDAY THE STATE DEPARTMENT SAID THE SESSION WILL BE THE 10TH ROUND OF MIDEAST TALKS SINCE THEY WERE LAUNCHED IN OCTOBER 1991 CROWN PRINCE NARUHITO MARRIED A JAPANESE COMMONER AND FORMER DIPLOMAT MASAKO OWADA IN A CEREMONY AT THE IMPERIAL PALACE THE PRINCE IS THE HEIR TO JAPAN'S 1500YEAROLD CHRYSANTHEMUM THRONE 9306090030 930609 BUSINESS BRIEF US BANKNOTE CORP SECURITY DOCUMENT PRINTER TO ACQUIRE DE LA RUE UNIT US BANKNOTE CORP SAID IT SIGNED A DEFINITIVE AGREEMENT TO ACQUIRE THOMAS DE LA RUE GRAFICA E SERVICOS LTDA OF BRAZIL A UNIT OF DE LA RUE PLC FOR 45 MILLION UNDER TERMS OF THE PROPOSED ACQUISITION US BANKNOTE A NEW YORK PRINTER OF SECURITY DOCUMETS WOULD BUY DE LA RUEBRAZIL A CHECK PRINTER FOR CASH AND ABOUT 940000 COMMON SHARES FOR ITS FISCAL YEAR ENDED MARCH 31 DE LA RUEBRAZIL'S UNAUDITED RESULTS INCLUDED SALES OF ABOUT 52 MILLION US BANKNOTE'S 1992 SALES WERE 172 MILLION US BANKNOTE SHARES CLOSED AT 7375 DOWN 25 CENTS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE SEPARATELY US BANKNOTE AGREED TO REACQUIRE FROM DE LA RUE PLC A 20 INTEREST IN ITS AMERICAN BANK NOTE HOLOGRAPHICS UNIT SOLD IN 1989 IN TURN US BANKNOTE WILL SELL BACK TO DE LA RUE ITS 20 INTEREST IN DE LA RUE HOLOGRAPHICS THE COMPANIES HAVE AGREED TO CROSSLICENSE SOME OF THEIR TECHNOLOGIES 9306090029 930609 INTERNATIONAL VIRGIN'S LAWSUIT AGAINST BRITISH AIR IS BACK IN PLAY BY BRIAN COLEMAN STAFF REPORTER OF THE WALL STREET JOURNAL IT'S BACK TO THE COURTS FOR VIRGIN ATLANTIC AIRWAYS AND BRITISH AIRWAYS PLC FOLLOWING A FAILED ATTEMPT BY BRITAIN'S CIVIL AVIATION AUTHORITY TO ARBITRATE A DISPUTE BETWEEN THE AIRLINES THE TWO AIRLINES ANNOUNCED MONDAY NIGHT THAT THE THREEWEEKOLD ATTEMPT BY THE AVIATION AUTHORITY HADN'T RESOLVED THE DISPUTE IN WHICH VIRGIN ACCUSES BRITISH AIRWAYS OF COMMITTING DIRTY TRICKS TO POACH PASSENGERS A SPOKESMAN FOR VIRGIN AIRWAYS WHICH IS OWNED BY VIRGIN GROUP LTD SAID HIS COMPANY WOULD PROCEED WITH A COURT CASE IT FILED IN THE UNITED KINGDOM LAST MONTH THE SPOKESMAN NOTED THAT VIRGIN ALSO WILL CONTINUE MAKING PREPARATIONS TO FILE A SUIT AGAINST BRITISH AIRWAYS IN THE US FOLLOWING VIRGIN'S COURT FILING LAST MONTH CAA CHAIRMAN CHRISTOPHER CHATAWAY HAD SOUGHT TO ARBITRATE BECAUSE HE TOLD THE AIRLINES HE BELIEVED THE YEARANDAHALFOLD DISPUTE DAMAGED THE BRITISH POSITION IN AVIATION TALKS WITH THE US ACCORDING TO VIRGIN THE CAA USED AS THE BASIS FOR ITS EFFORTS A DRAFT AGREEMENT FROM EARLY THIS YEAR IN WHICH BRITISH AIRWAYS AGREED TO PAY 9 MILLION 137 MILLION IN DAMAGES THAT DEAL COLLAPSED ON OTHER ISSUES IN PARTICULAR A BRITISH AIRWAYS DEMAND THAT VIRGIN CHAIRMAN RICHARD BRANSON BE BARRED FROM SPEAKING ABOUT THE ISSUE THE AIRLINES AND THE CAA SAID PROGRESS WAS MADE IN THE ARBITRATION ATTEMPT ON ISSUES SUCH AS THE GAG ORDER BUT THE TALKS APPARENTLY COLLAPSED ON THE ISSUE OF COMPENSATION FOR LOST BUSINESS BRITISH AIRWAYS COULD NOT AGREE TO PAY THE 9 MILLION A CAA SPOKESMAN SAID AS A RESULT WE BELIEVE THERE'S NO FURTHER ROLE THE CAA CAN PLAY IN TRYING TO RESOLVE THIS CONFLICT BRITISH AIRWAYS SAID IT HAD NEVER RENEWED AN OFFER OF A 9 MILLION PAYMENT MADE IN TALKS WITH VIRGIN EARLIER THIS YEAR AND HAD SOUGHT TO REFER THE ISSUE TO AN ARIBITRATOR VIRGIN REJECTED THE PROPOSAL CONTENDING THAT A 1988 MAINTENANCE DISPUTE BETWEEN THE TWO AIRLINES REMAINS IN ARBITRATION AND THAT BRITISH AIRWAYS USES ARBITRATION AS A DELAYING TACTIC VIRGIN ALLEGES THAT BRITISH AIRWAYS HAS RAIDED ITS COMPUTER TO GAIN INFORMATION ON ITS CUSTOMERS AND HAS USED A VARIETY OF TRICKS TO PERSUADE PASSENGERS TO SWITCH FROM VIRGIN IN JANUARY VIRGIN AND BRITISH AIRWAYS SETTLED A SEPARATE LIBEL SUIT STEMMING FROM THE DIRTY TRICKS CAMPAIGN WITH BRITISH AIRWAYS PAYING 610000 PLUS LEGAL EXPENSES 9306090028 930609 SENATE PANEL CLEARS SPENDING MEASURE THAT EMPHASIZES OUTLAYS FOR PENTAGON BY DAVID ROGERS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SENATE APPROPRIATIONS COMMITTEE APPROVED A NEARLY 19 BILLION MEASURE THAT SALVAGES ONLY REMNANTS OF PRESIDENT CLINTON'S STIMULUS PLAN AND IRONICALLY BENEFITS THE PENTAGON WHILE CUTTING OUTLAYS FOR DOMESTIC DISCRETIONARY PROGRAMS THIS YEAR THE ADDED MILITARY EXPENDITURES ARE LARGELY TO COVER THE COST OF US PEACEKEEPING OPERATIONS IN SOMALIA AND THE MIDEAST BUT AFTER MR CLINTON CAMPAIGNED ON A PLATFORM OF CHANGE THE ADMINISTRATION IS FACED WITH LEGISLATION IN WHICH THE PRIORITIES ARE AT ODDS WITH THE HEAVY DOMESTIC EMPHASIS OF THE PRESIDENT'S ECONOMIC STIMULUS PLAN FOR EXAMPLE THE NET IMPACT OF YESTERDAY'S SUPPLEMENTAL MEASURE IS TO ADD 128 BILLION FOR PENTAGON APPROPRIATIONS AGAINST JUST 82 MILLION FOR DOMESTIC ACCOUNTS WHERE DIRECT SPENDING OR OUTLAYS WOULD BE CUT BY 57 MILLION FOR THE CURRENT FISCAL YEAR ENDING SEPT ADDITIONAL FUNDING FOR THE PRESIDENT'S ONCEAMBITIOUS SUMMER JOBS PROGRAM WOULD BE HELD TO 200 MILLION OR 120 MILLION BELOW THE HOUSEPASSED LEVEL AND WHILE THE SENATE BILL INCLUDES ANOTHER 200 MILLION FOR A COMMUNITY POLICE PROGRAM BACKED BY THE WHITE HOUSE THE PANEL DIDN'T APPROVE ANY OF THE 400 MILLION SOUGHT BY THE ENVIRONMENTAL PROTECTION AGENCY FOR WATER AND SEWER PROJECTS THE MOST SENSITIVE REDUCTION MAY PROVE TO BE IN THE SMALL BUSINESS ADMINISTRATION WHERE THE PANEL INCLUDES NONE OF THE 181 MILLION APPROVED BY THE HOUSE TO FINANCE BILLIONS IN LOAN GUARANTEES THIS IS SURE TO FORCE A FIGHT WITHIN DOMESTIC ACCOUNTS AND WHILE THE NEW POLICE PROGRAM IS A POTENTIAL TARGET SMALL BUSINESS COMMITTEE CHAIRMAN DALE BUMPERS D ARK WHO SITS ON THE APPROPRIATIONS PANEL SERVED NOTICE THAT HE WOULD TRY TO FIND THE MONEY BY CUTTING FROM UNOBLIGATED FUNDS FOR THE SPACE PROGRAM THE SENATE ACTION CAME AS THE HOUSE APPROPRIATIONS COMMITTEE SEPARATELY APPROVED A 178 BILLION BILL GOVERNING CONGRESS'S OWN BUDGET AND THE OPERATIONS OF THE CAPITOL FOR THE FISCAL YEAR BEGINNING OCT 1 9306090027 930609 TECHNOLOGY & MEDICINE PROGRESS IS SHOWN IN RACE FOR HIV DRUG BY WALL STREET JOURNAL REPORTERS MARILYN CHASE IN BERLIN AND MICHAEL WALDHOLZ IN NEW YORK SEVERAL PHARMACEUTICAL COMPANIES RACING TO DEVELOP A NEW TYPE OF DRUG AGAINST THE AIDS VIRUS ARE REPORTING SIGNIFICANT ALBEIT PRELIMINARY ADVANCES THIS WEEK AT THE NINTH INTERNATIONAL CONFERENCE ON AIDS IN BERLIN THE RESEARCH REPORTS ARE GENERATING SOME OF THE BRIGHTEST HOPES IN A FIELD THAT HAS BECOME INCREASINGLY GLOOMY IN RECENT YEARS THE RESEARCH INVOLVES MEDICINES THAT BLOCK THE ACTION OF AN ENZYME CALLED PROTEASE THAT IS CRITICAL TO HIV REPLICATION TO DATE THE RACE TO DEVELOP A PROTEASE INHIBITOR INVOLVES ABOUT 12 COMPANIES INCLUDING ROCHE HOLDING LTD MERCK & CO DUPONT MERCK PHARMACEUTICAL CO ABBOTT LABORATORIES AND SEARLE A UNIT OF MONSANTO CO AS WELL AS SMALL COMPANIES SUCH AS VERTEX PHARMACEUTICALS AND VICAL PHARMACEUTICALS INC DRUG MAKERS HAVE BEEN TRYING FOR YEARS TO DEVELOP USEFUL DRUGS AGAINST THE PROTEASE ENZYME A KIND OF CHEMICAL SCISSORS THAT PERFORMS A KEY STEP IN THE AIDS VIRUS'S MANUFACTURE OF NEW INFECTIOUS PARTICLES BUT UNTIL RECENTLY RESEARCHERS WERE THWARTED THE COMPANIES WEREN'T ABLE TO DESIGN MOLECULES SMALL ENOUGH TO REACH CELLS INFECTED BY THE HUMAN IMMUNODEFICIENCY VIRUS BUT DOCTORS AND ACTIVISTS AT THE MEETING WERE INTRIGUED BY NEW DATA ABOUT A HANDFUL OF PROTEASE BLOCKERS ESPECIALLY IN LIGHT OF NEW SOBERING REPORTS DETAILING THE LIMITED BENEFITS OF WELLCOME PLC'S ANTIVIRAL DRUG AZT THOSE ATTENDING THE GATHERING WERE ESPECIALLY SURPRISED TO HEAR THAT RESEARCHERS AT VERTEX PHARMACEUTICALS A YOUNG DRUG RESEARCH COMPANY IN CAMBRIDGE MASS RECENTLY DISCOVERED AN ENTIRE CLASS OF COMPOUNDS THAT APPEARS COMPACT ENOUGH TO REACH INFECTED CELLS IN AMOUNTS LARGE ENOUGH TO BLOCK VIRAL REPRODUCTION THE COMPANY SAID ITS DRUG IS ONE OF THE FIRST PRODUCED THROUGH A SOCALLED RATIONAL DESIGN PROCESS IN WHICH COMPUTER IMAGES OF THE ENZYME'S ATOMIC STRUCTURE ARE USED TO DEVELOP NEW COMPOUNDS WHILE VERTEX IS BELIEVED TO HAVE THE SMALLEST AND SIMPLEST MOLECULE AN ADVANTAGE IN MANUFACTURING AND CLINICAL TREATMENT IT IS ROCHE WHICH HAS THE LONGEST TRACK RECORD IN HUMAN CLINICAL TESTS SO FAR INDEED ROCHE IS BELIEVED TO BE PREPARING A PROGRESS REPORT OF ITS HUMAN TESTS WHICH WILL SHOW ITS DRUG ELICITED POSITIVE IF EARLY TRENDS IN IMMUNE CELLS STEFANO VELLA A RESEARCHER FROM THE ISTITUTO SUPERIORE DI SANITA IN ROME TOLD CONFEREES HERE HE HAS WORKED WITH THE ROCHE PROTEASE DRUG AND IT SEEMS EXTREMELY PROMISING HOWEVER ROCHE'S DRUG IS A LARGE MOLECULE UNLIKE VERTEX'S AND DIFFICULT TO MAKE INVOLVING 21 STEPS SOME SCIENTISTS SAID DUPONT MERCK A JOINT VENTURE OF MERCK AND DUPONT CO PRESENTED A SMALLSIZE PROTEASE DRUG CANDIDATE THAT SO FAR IS WELL TOLERATED BY HUMANS AND HAS PROVOKED LITTLE IF ANY DRUG RESISTANCE BY MUTANT VIRUSES ACCORDING TO SCIENTIST MJ OTTO THE RACE TO CREATE A PROTEASE INHIBITOR WAS TRIGGERED IN 1988 WHEN RESEARCHERS AT MERCK PRODUCED A PRELIMINARY IMAGE OF THE ENZYME'S CHEMICAL AND ATOMIC STRUCTURE THE IMAGE GAVE SCIENTISTS AN UNDERSTANDING OF THE ENZYME'S RECEPTOR SITE WHICH THE ENZYME USES TO CARRY OUT NECESSARY REACTIONS IN THE VIRUS IN THE VERTEX PHARMACEUTICAL PRESENTATION SCIENTIST ROGER TUNG SAID HIS COMPANY'S DRUG WORKED AGAINST HIV IN CULTURED CELLS BUT ALSO AGAINST FRESH VIRUS SAMPLES TAKEN FROM PATIENTS A TEST THAT IS CONSIDERED INCREASINGLY RELEVANT FOR A DRUG TO SUCCEED IN THE REAL WORLD THERE IS AN EXTREMELY HIGH LEVEL OF VIRUS INHIBITION SAID DR TUNG ADDING THAT THE DRUG INFLICTED NEGLIGIBLE TOXIC DAMAGE TO HEALTHY AND UNINFECTED HUMAN CELLS BUT THE VERTEX REPORT LEFT SOME AUDIENCE MEMBERS FRUSTRATED BY ITS FAILURE TO DISCLOSE A CHEMICAL STRUCTURE FOR THE COMPOUND CLYDE CRUMPACKER AN AIDS RESEARCHER AT THE BETH ISRAEL HOSPITAL IN BOSTON CHIDED VERTEX TELLING DR TUNG THAT AT A MEETING LIKE THE AIDS CONFERENCE IT IS USELESS AND A WASTE OF TIME WITHOUT A CHEMICAL STRUCTURE HOWEVER DR TUNG ARGUED WE HAVEN'T CARRIED OUT HUMAN TOXICITY EVALUATIONS AND WERE VERY CONCERNED ABOUT HAVING A SAFE COMPOUND BEFORE WE PUT OUT THE STRUCTURE THAT'S A COMMON CONCERN OF DRUG DESIGNERS IN MEETINGS PACKED WITH PATIENTS AND ACTIVISTS EAGER FOR UNDERGROUND KNOCKOFFS OF ANY DRUG DR TUNG LATER ACKNOWLEDGED THAT VERTEX HAS APPLIED FOR A PATENT BUT IS STILL AWAITING FEDERAL PROTECTION OF THE COMPOUND DESPITE HIGH HOPES THE FATE OF PROTEASE INHIBITORS WILL BE DECIDED IN THE CLINIC SCIENTISTS SAID THEY'RE AWAITING EARLY VALIDATION OF THE CONCEPT HERE TOMORROW WHEN ENGLISH ITALIAN AND FRENCH RESEARCHERS REPORT THEIR CLINICAL TESTS OF THE ROCHE DRUG 9306090026 930609 BUSINESS BRIEF MBIA INC FRENCH MUNICIPAL BOND ISSUE IS INSURED BY A SUBSIDIARY MBIA INC THE LEADING US INSURER OF MUNICIPAL BONDS SAID IT HAS INSURED ITS FIRST MUNICIPAL ISSUE IN FRANCE THE INSURED BOND ISSUE ALSO IS THE FIRST BY A US MUNICIPAL BOND INSURER IN FRANCE MBIA SAID THE ARMONK NY COMPANY SAID ITS FRENCH SUBSIDIARY MBIA ASSURANCE SA GUARANTEED PRINCIPAL AND INTEREST PAYMENTS ON 100 MILLION FRENCH FRANCS 183 MILLION OF VARIABLERATE BONDS ISSUED BY THE DEPARTEMENT DU NORD TO FINANCE GENERAL INFRASTRUCTURE IMPROVEMENTS THE BONDS BY VIRTUE OF THEIR INSURED STATUS WILL BE RATED TRIPLEA BY BOTH MOODY'S INVESTORS SERVICE INC AND STANDARD & POOR'S CORP MBIA SAID THE DEPARTEMENT DU NORD ONE OF THE LARGEST DEPARTEMENTS IN FRANCE PROVIDES INFRASTRUCTURE SOCIAL AND EDUCATIONAL SERVICES TO MORE THAN 25 MILLION PEOPLE IN THE NORTH OF FRANCE IT IS ONE OF 95 DEPARTEMENTS IN FRANCE GENERALLY COMPARABLE TO STATES IN THE US 9306090025 930609 PEPPERAND SALT BACK TO THE FUTURE AS COUNTRIES RISE AND FALL IS NO EARTHLY USE AT ALL WHEN I THINK OF MARILYN MONROE ON THE DOLLAR BILL 9306090024 930609 LAW LEGAL BEAT SULLIVAN & CROMWELL'S SEYMOUR REFUSED TO DEFEND BOMB SUSPECT BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL AN ATTORNEY AT THE WALL STREET LAW FIRM SULLIVAN & CROMWELL TURNED DOWN THE CHANCE LAST MONTH TO REPRESENT A DEFENDANT IN THE WORLD TRADE CENTER BOMBING BUT NOT BEFORE THE PARTNERSHIP CONSULTED A MAJOR CORPORATE CLIENT AND ENGAGED IN A VIGOROUS DEBATE THE REQUEST MADE LAST MONTH BY US DISTRICT JUDGE KEVIN T DUFFY THREW THE TRADITIONAL LAW FIRM INTO TURMOIL PARTNERS THERE TYPICALLY REPRESENT CORPORATE CLIENTS SUCH AS GOLDMAN SACHS & CO AND FIRST BOSTON CORP NOT ALLEGED TERRORISTS OR REPUTEDLY VIOLENT CRIMINALS OF ANY SORT JUDGE DUFFY HAD WANTED SULLIVAN & CROMWELL ASSOCIATE SAMUEL W SEYMOUR A FORMER FEDERAL PROSECUTOR TO REPRESENT MAHMOUD ABOUHALIMA ONE OF SIX MEN CHARGED IN CONNECTION WITH THE FEB 26 BOMBING JUDGE DUFFY PICKED MR SEYMOUR OFF THE SOCALLED CIVIL JUSTICE ACT LIST OF LAWYERS AVAILABLE FOR APPOINTMENT IN CASES IN WHICH A DEFENDANT CANNOT AFFORD TO PAY A LAWYER AFTER MR SEYMOUR TURNED DOWN THE REQUEST MR ABOUHALIMA'S FAMILY FOUND A LAWYER TO REPRESENT HIM FOR A SMALL FEE ALTHOUGH MR SEYMOUR WAS APPROACHED INDIVIDUALLY HE FELT HE HAD TO DISCUSS THE CASE WITH THE FIRM'S PARTNERS IT WASN'T MY DECISION TO MAKE WITHOUT CONSULTING THE FIRM WHICH I DID HE SAID THE ISSUE CREATED A CRISIS OF CONSCIENCE FOR THE LAW FIRM ALTHOUGH MOST LAWYERS AGREE THAT ALL DEFENDANTS ARE ENTITLED TO A RIGOROUS DEFENSE SOME PARTNERS AT THE FIRM FELT STRONGLY THAT SULLIVAN & CROMWELL SHOULDN'T LINK ITSELF TO A NOTORIOUS AND POLITICALLY SENSITIVE CRIME PHILIP L GRAHAM JR A PARTNER ON AN ADMINISTRATIVE COMMITTEE THAT CONSIDERS NEW CASES SAID THERE WERE A NUMBER OF PEOPLE WHO JUST FOUND THE DEFENDANT SO PERSONALLY OBJECTIONABLE THAT THEY DIDN'T THINK THE PARTNERSHIP SHOULD HAVE THEIR RESOURCES BEHIND HIS DEFENSE IT WAS SUCH A HEINOUS CRIME HE SAID THAT THEY DIDN'T WANT TO BE ASSOCIATED WITH DEFENDING IT SOME OF THE ONES WHO REALLY HAD DEEPLY HELD VIEWS THOUGHT THESE PEOPLE THE DEFENDANTS WERE ANTISEMITIC IN THE MOST DANGEROUS WAY ADDED MR GRAHAM WHO SAID THAT HE PERSONALLY HAD NO PROBLEM WITH MR SEYMOUR TAKING ON THE ABOUHALIMA DEFENSE SOME IN THE PARTNERSHIP ALSO WERE WORRIED ABOUT HOW THE FIRM WOULD BE VIEWED BY THE BUSINESS COMMUNITY WILLIAM E WILLIS A SENIOR PARTNER SAID THE FIRM CONTACTED GOLDMAN SACHS A LONGTIME CLIENT TO SOLICIT ITS VIEWS ON JUDGE DUFFY'S REQUEST A SPRINKLING OF GOLDMAN SACHS EXECUTIVES WERE QUERIED ABOUT HOW THE BUSINESS COMMUNITY WOULD REACT GOLDMAN SACHS RAISED NO OBJECTIONS HE SAID NEVERTHELESS SOME PARTNERS REMAINED STUBBORNLY AGAINST SULLIVAN & CROMWELL'S BECOMING INVOLVED MR WILLIS SAID THAT THE PARTNERS' VIEWS VARIED WIDELY AND THAT SOME AT THE 370LAWYER FIRM EVEN THOUGHT THE REPRESENTATION WOULD BE INAPPROPRIATE BECAUSE THE LAW FIRM'S OFFICE IS ONLY A FEW BLOCKS AWAY FROM THE WORLD TRADE CENTER AND THE BLAST AFFECTED THE FIRM'S CORPORATE NEIGHBORS FINALLY SAID MR WILLIS MR SEYMOUR WAS ADVISED BY THE PARTNERS THAT THIS WAS SOMETHING THAT HE OUGHT NOT GET INVOLVED IN MR SEYMOUR SAID HE AGREED WITH THE DECISION AND TOLD JUDGE DUFFY WE DIDN'T WANT TO TAKE THE ASSIGNMENT OTHER LAW FIRMS APPARENTLY HAVE VIEWED THE ISSUE MUCH THE SAME WAY ACCORDING TO MR SEYMOUR JUDGE DUFFY HAS SAID THAT 18 TO 20 LAWYERS TURNED DOWN THE CHANCE TO REPRESENT MR ABOUHALIMA WHO ALLEGEDLY FLED TO EGYPT TO AVOID ARREST AND WAS RETURNED TO THE US IN MARCH A LAW CLERK FOR JUDGE DUFFY SAID THE JUDGE WOULD NOT COMMENT ON ANYTHING RELATED TO THE CASE BUT A LAWYER FROM AT LEAST ONE OTHER MAJOR CORPORATE LAW FIRM SAID HE WAS AMONG THOSE APPROACHED BY THE JUDGE THAT LAWYER KENNETH A CARUSO IS A PARTNER AT SHEARMAN & STERLING WHICH IS KNOWN FOR ITS REPRESENTATION OF CITICORP MR CARUSO WHO LIKE MR SEYMOUR IS ON THE CIVIL JUSTICE ACT LIST SAID THAT HE MADE INQUIRIES AT HIS FIRM AND LEARNED THAT IT HAD A CONFLICT OF INTEREST SHEARMAN & STERLING DOESN'T REPRESENT ANY OF THE OTHER DEFENDANTS BUT IS INVOLVED IN CIVIL MATTERS RELATED TO THE EXPLOSION SAID MR CARUSO WHO DECLINED TO COMMENT FURTHER ON THE CONFLICT THE SEARCH FOR A LAWYER FOR MR ABOUHALIMA BEGAN WHEN HIS FIRST ATTORNEY JESSE BERMAN WITHDREW FROM THE CASE LAST MONTH MR BERMAN SAID YESTERDAY THAT MR ABOUHALIMA'S FAMILY COULDN'T AFFORD TO PAY HIM AND THAT THE JUDGE DECLINED TO APPOINT HIM AS CIVIL JUSTICE ACT COUNSEL SUCH LAWYERS ARE PAID BY THE GOVERNMENT TO REPRESENT INDIGENT DEFENDANTS MR BERMAN ARGUED THAT JUDGE DUFFY WASN'T TRYING TO GET SOMEBODY WHO KNEW HOW TO TRY THIS KIND OF SERIOUS CRIMINAL CASE AFTER ALL HE POINTED OUT REPRESENTING BOMBERS IS NOT EXACTLY WALL STREET'S DAILY FARE OTHER LAWYERS ON THE DEFENSE SIDE OF THE CASE ARE NOW SHARPLY CRITICIZING JUDGE DUFFY YESTERDAY WILLIAM M KUNSTLER AND RONALD L KUBY WHO REPRESENT A MAN ACCUSED OF OBSTRUCTING THE BOMBING INVESTIGATION FILED A PETITION REQUESTING THAT CONGRESS CONSIDER IMPEACHING JUDGE DUFFY THEY ARGUED AMONG OTHER THINGS THAT MR ABOUHALIMA WAS LEFT WITHOUT COUNSEL FOR SEVERAL WEEKS AND WAS AT THE MERCY OF THE GOVERNMENT WHICH TRIED TO PERSUADE HIM TO COOPERATE IN THE CASE LATE LAST MONTH JUDGE DUFFY FINALLY APPOINTED LAWRENCE A VOGELMAN A LAW PROFESSOR AT BENJAMIN N CARDOZO LAW SCHOOL TO REPRESENT MR ABOUHALIMA BUT BY THEN MR ABOUHALIMA'S FAMILY HAD RECRUITED HASSEN IBN ABDELLAH OF ELIZABETH NJ AND TWO OTHER LAWYERS TO REPRESENT HIM MR ABDELLAH SAID HE IS RECEIVING VERY MINIMAL PAYMENT WHO'S NEWS JOANNE T MEDERO RESIGNED AS GENERAL COUNSEL OF THE COMMODITY FUTURES TRADING COMMISSION TO BECOME A PARTNER AT LAW FIRM ORRICK HERRINGTON & SUTCLIFFE IN NEW YORK SHE HAD BEEN GENERAL COUNSEL SINCE 1989 HEALTH LAW MICHAEL J ASTRUE A PARTNER AT BOSTON LAW FIRM MINTZ LEVIN COHN FERRIS GLOVSKY & POPEO WILL LEAVE TO BECOME GENERAL COUNSEL AT BIOGEN INC A BIOTECHNOLOGY COMPANY IN CAMBRIDGE MASS MR ASTRUE WAS GENERAL COUNSEL OF THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES BEFORE JOINING THE LAW FIRM IN NOVEMBER 9306090023 930609 REVIEW & OUTLOOK EDITORIAL THE OTHER GUINIERS THOUGH PRESIDENT CLINTON HAS CUT HIS LOSSES WITH LANI GUINIER THE LINGERING QUESTION IS WHY SHE WAS EVER APPOINTED WHAT DOES IT SAY ABOUT A WHITE HOUSE APPOINTMENT PROCESS WHEN A PRESIDENT HIMSELF HAS TO READ LAW REVIEW ARTICLES BEFORE ANYONE NOTICES A PROBLEM THAT QUESTION SEEMS ESPECIALLY APT BECAUSE OF TWO OTHER WIDELY RUMORED CLINTON NOMINEES WHO COULD BE THIS PRESIDENT'S NEXT CONFIRMATION HEADACHES WORD IS THAT SHELDON HACKNEY WILL GET THE NOD AT THE NATIONAL ENDOWMENT FOR THE HUMANITIES NEH WHILE STANLEY KATZ WILL RUN THE NATIONAL ARCHIVES THEIR APPOINTMENT WOULD IDENTIFY MR CLINTON WITH THE ACADEMIC ELITES WHO HAVE MADE POLITICAL CORRECTNESS THE DOMINANT ETHIC ON AMERICAN CAMPUSES MR HACKNEY IS BY NOW WELL KNOWN AS THE PRESIDENT OF PENN WHO TRIED TO PROSECUTE A FRESHMAN FOR SHOUTING WATER BUFFALO AT SOME RAUCOUS BLACK WOMEN THIS WAS DEEMED A CRIME AGAINST DIVERSITY ONLY AFTER NEARUNIVERSAL UPROAR AND RIDICULE IN THE PRESS HERE AND ABROAD DID MR HACKNEY DROP THE PROSECUTION BUT IN FACT MR HACKNEY'S CORRECTNESS CAMPAIGN IS LONGRUNNING IN 1991 HE SPOKE OUT IN FAVOR OF KICKING ROTC FROM PENN UNLESS THE MILITARY BEGAN TO ADMIT OPENLY GAY MEN AND LESBIANS AND MR HACKNEY SAW ONLY A CONFLICT BETWEEN DIVERSITY AND OPEN EXPRESSION WHEN SOME PENN STUDENTS STOLE 13000 COPIES OF A STUDENT NEWSPAPER THEY FOUND OFFENSIVE NAT HENTOFF THE LIBERAL COLUMNIST HAS WRITTEN ABOUT A PENN LECTURER MURRAY DOLFMAN WHO WAS FORCED TO APOLOGIZE AND UNDERGO A SENSITIVITY AND RACIAL AWARENESS SESSION A FEW YEARS BACK MR DOLFMAN'S SIN HE HAD TRIED TO MAKE HIS POPULAR LECTURES ON THE 13TH AMENDMENT MORE POINTED BY REFERRING TO BLACKS AND JEWS REFERRING TO ANCIENT EGYPT AS EXSLAVES ON THE OTHER HAND MR HACKNEY WAS QUICK TO DENOUNCE JESSE HELMS FOR HIS ATTACKS ON FEDERAL SUBSIDIES FOR PISSCHRIST AND OTHER ART THE BEST PROTECTION WE HAVE FOUND FOR A DEMOCRACY IS AN UNREGULATED MARKET IN EXPRESSION HE WROTE AT THE TIME APPARENTLY WITHOUT IRONY MR HACKNEY'S DOUBLE STANDARD SUGGESTS A MAN WHO'D DISPENSE FEDERAL ARTS MONEY ACCORDING TO A SIMILAR BIAS AS FOR MR KATZ HE WAS A LEAD PROSECUTOR IN THE CELEBRATED 1991 CAMPAIGN AGAINST CAROL IANNONE'S NOMINATION TO THE ADVISORY BOARD OF THE NEH AS PRESIDENT OF SOMETHING CALLED THE AMERICAN COUNCIL OF LEARNED SOCIETIES ACLS MR KATZ GINNED UP A LETTER CAMPAIGN TO DEMOCRATIC SENATORS WHO DEFEATED HER AS SOMEHOW UNQUALIFIED BUT HER REAL SIN AS DEMOCRATIC SENATOR DANIEL PATRICK MOYNIHAN POINTED OUT IN DEFENDING MS IANNONE WAS THAT SHE HAD ATTACKED POLITICAL CORRECTNESS IN ARTICLES IN COMMENTARY MAGAZINE THE LEARNED MR KATZ THEN FIRED OFF A LETTER SO AMAZING THAT MR MOYNIHAN HAD IT PLACED IN THE CONGRESSIONAL RECORD ACLS IS THE LARGEST HUMANITIES ORGANIZATION IN THE WORLD MR KATZ WROTE TO HIS HOME STATE SENATOR MIGHT IT NOT HAVE BEEN A GOOD IDEA FOR SOMEONE ON YOUR STAFF TO INQUIRE INTO OUR REASONS FOR OPPOSING IANNONE OR DON'T YOU CARE WHAT WE THINK OR WHY WE THINK IT I AM SIMPLY APPALLED THAT A FELLOW DEMOCRAT INTELLECTUAL AND ACADEMIC SHOULD RESORT TO SUCH SCANDALOUS AND IRRESPONSIBLE IMPUTATION OF BAD MOTIVES WHAT SHOULD I MAKE OF YOUR OWN MR MOYNIHAN MUST NOW BE WONDERING WHAT HE SHOULD MAKE OF A WHITE HOUSE THAT WOULD NOMINATE SOMEONE WHO HAD SO INSULTED THE CHAIRMAN OF THE SENATE FINANCE COMMITTEE WERE MR CLINTON'S PERSONNEL AIDES ALL ASLEEP DURING THE IANNONE FIGHT DID THEY BOTHER EVEN TO CLEAR THEIR CHOICE WITH THE SENATOR THEY NEED MORE THAN ANY OTHER TO PASS THE WOBBLY CLINTON TAX PROGRAM THE KATZ CHOICE WOULD SUGGEST A WHITE HOUSE ARROGANCE THAT BORDERS ON THE DELUSIONAL AT LEAST THE HACKNEY NOMINATION IS ATTRIBUTABLE TO PERSONAL TIES SINCE MR HACKNEY'S WIFE SERVED ON THE BOARD OF THE CHILDREN'S DEFENSE FUND WITH HILLARY CLINTON BUT THIS IS THE SAME HILLARY CLINTON WHO RECENTLY GAVE A FINE SPEECH AT PENN DEPLORING POLITICAL CORRECTNESS SHE COULD PROVE THIS WAS MORE THAN RHETORIC BY ASKING HER HUSBAND TO DROP THE HACKNEY NOMINATION THE BIGGER POINT HERE IS THAT MR CLINTON NEEDS A PERSONNEL PROCESS THAT CAN SOMEHOW AVOID SUCH POTENTIAL DISASTERS INSTEAD HE HAS AIDES WHO THINK LANI GUINIER AND SHELDON HACKNEY ARE IN THE MAINSTREAM IT'S A MYSTERY TO US THAT AL FROM OF THE CENTRIST DEMOCRATIC LEADERSHIP COUNCIL IS WRITING OPEDS IN THE NEW YORK TIMES INSTEAD OF FLAGGING THESE POTENTIAL DISASTERS FROM INSIDE THE WHITE HOUSE WITHOUT SUCH ADVICE THE PRESIDENT WILL ONLY SUFFER MORE LANI GUINIERS SEE RELATED LETTER LETTERS TO THE EDITOR IN DEFENSE OF SHELDON HACKNEY WSJ JUNE 11 1993 9306090022 930609 THE US WAR ON MACEDONIA BY JAMES BOVARD PRESIDENT CLINTON HAS SUGGESTED THAT THE US MAY SEND GROUND TROOPS TO MACEDONIA TO AID AND PROTECT THE MACEDONIANS AGAINST FOREIGN ATTACKS BUT WHILE THE REPUBLIC OF MACEDONIA IS STRUGGLING WITH A FLOOD OF REFUGEES FROM BOSNIA AND THREATS OF INVASION THE US COMMERCE DEPARTMENT HAS LAUNCHED A PREEMPTIVE ATTACK ON A TRICKLE OF MACEDONIAN CLOTHES EXPORTS AT A TIME WHEN MR CLINTON IS MAKING NEW DEMANDS ON JAPAN TO OPEN ITS MARKETS THE US GOVERNMENT IS WORKING OVERTIME TO CLOSE ITS OWN MARKETS US TEXTILE TRADE POLICY IS ESTABLISHED PRIMARILY BY THE COMMITTEE FOR THE IMPLEMENTATION OF TEXTILE AGREEMENTS A GROUP OF REPRESENTATIVES FROM VARIOUS FEDERAL AGENCIES IN PRACTICE CITA IS DOMINATED BY THE COMMERCE DEPARTMENT AND THE COMMERCE DEPARTMENT IS DOMINATED BY THE DOMESTIC TEXTILE INDUSTRY LAST THURSDAY CITA SLASHED THE NUMBER OF WOOL SUITS THAT MACEDONIA IS ALLOWED TO EXPORT TO THE US EARLIER THIS YEAR MACEDONIA WAS EXPORTING MEN'S AND BOYS' WOOL SUITS TO THE US AT A RATE EQUIVALENT TO 279000 SUITS A YEAR NOW MACEDONIA IS PROHIBITED FROM EXPORTING MORE THAN 80000 WOOL SUITS A YEAR TO THE US A DE FACTO 71 CUT IN EXPORT LEVELS CLINT STACK PRESIDENT OF INTERNATIONAL DEVELOPMENT SYSTEMS AND A FORMER US GOVERNMENT TEXTILE OFFICIAL SAID I HAVE NEVER SEEN SUCH A DRASTIC CUTBACK IMPOSED ON ANY COUNTRY'S TEXTILE EXPORTS AS THE US GOVERNMENT HAS IMPOSED ON MACEDONIA A COMMERCE DEPARTMENT SPOKESMAN REVEALED YESTERDAY THAT THE ACTION WAS TAKEN IN RESPONSE TO RAMPANTLY RISING IMPORTS BUT MACEDONIAN EXPORTS AMOUNT TO BARELY 3 OF THE TOTAL NUMBER OF MEN'S AND BOYS' WOOL SUITS BOUGHT IN THE US THE COMMERCE DEPARTMENT EVER VIGILANT AGAINST SUBVERSIVE IMPORTS RALLIED THE FEDERAL COMMITTEE TO TORPEDO PERHAPS MACEDONIA'S MOST IMPORTANT EXPORT TO THE US AT THE SAME TIME THAT MR CLINTON MAY BE PREPARING TO RISK AMERICAN SOLDIERS' LIVES IN DEFENSE OF MACEDONIA THE US GOVERNMENT TREATED THE OFFICIAL US REPRESENTATIVE OF THE REPUBLIC OF MACEDONIA WITH DISRESPECT THE US DOES NOT YET HAVE FORMAL DIPLOMATIC RELATIONS WITH MACEDONIA BECAUSE OF US CONCERNS OVER A DISPUTE BETWEEN GREECE AND THE NEW REPUBLIC US GOVERNMENT OFFICIALS SUMMONED LJUBICA ACEVSKA MACEDONIA'S WASHINGTON REPRESENTATIVE AND INFORMED HER THAT THE US INTENDED TO SLASH IMPORTS FROM HER COUNTRY NAOMI FREEMAN A COMMERCE DEPARTMENT OFFICIAL INVOLVED IN ESTABLISHING THE MACEDONIAN QUOTA OBSERVED IN A PHONE INTERVIEW MONDAY THE PROBLEM IS THAT AT THIS TIME WE ARE NOT NEGOTIATING WITH THEM IT IS A LITTLE AWKWARD WE HAD THESE MEETINGS WITH HER BUT THEY WERE NOT CLASSIFIED AS NEGOTIATIONS AND THAT IS PART OF THE WEIRDNESS THOUGH US GOVERNMENT OFFICIALS FELT PROHIBITED FROM NEGOTIATING WITH MACEDONIAN REPRESENTATIVES THEY APPARENTLY FELT EMINENTLY ENTITLED TO DICTATE TO THE COUNTRY IT IS BIZARRE THAT THE COMMERCE DEPARTMENT WOULD PUNISH MACEDONIA OVER THE ISSUE OF WOOL CLOTHING THE US GOVERNMENT HAS CODDLED DOMESTIC WOOL CLOTHING MAKERS CEASELESSLY FOR ALMOST 200 YEARS THE TARIFF ON WOOL SUITS IS 21 APPARENTLY IT IS NOT ENOUGH FOR THE US GOVERNMENT TO SEVERELY TILT THE PLAYING FIELD IN AMERICAN INDUSTRY'S FAVOR THE US GOVERNMENT IS ALSO OBLIGED TO LOCK ALL FOREIGN TEAMS OUT OF THE STADIUM AT A RECENT CITA MEETING A REPRESENTATIVE OF THE DOMESTIC TEXTILE INDUSTRY REPORTEDLY SOUGHT TO INTIMIDATE FEDERAL OFFICIALS UNLESS THEY ACTED TO FURTHER RESTRICT CLOTHING IMPORTS THE RESTRICTION ON MACEDONIAN EXPORTS WILL REDUCE MACEDONIANS' ABILITY TO RAISE SUFFICIENT FUNDS BOTH TO FEED AND DEFEND THEMSELVES THE CLINTON ADMINISTRATION HAS SLAPPED A PARTIAL ECONOMIC EMBARGO ON MACEDONIA WHICH HAS DONE NOTHING TO DESERVE HARSH TREATMENT MS ACEVSKA OBSERVES WHAT IMPACT WOULD A COUPLE OF WOOL SUITS HAVE ON THE US BUT IT WOULD HAVE A TREMENDOUS IMPACT FOR THE PEOPLE IN MACEDONIA IT WOULD PROVIDE FOOD FOR THE TABLE YOU ARE JUST STRANGLING THE COUNTRY THE US ACTION IS ESPECIALLY ILLTIMED SINCE MACEDONIA IS STRUGGLING TO SHED ITS SOCIALIST LEGACY AND ENTER THE CAPITALIST WORLD UNFORTUNATELY THE US POLICY TOWARD MACEDONIA FITS A PATTERN OF PROLIFERATING TEXTILE PROTECTIONISM SINCE MR CLINTON TOOK OFFICE ON JAN 22 THE US DICTATED THAT THE DOMINICAN REPUBLIC COULD NOT EXPORT MORE THAN 126797 MEN'S WOOL SUITS TO THE US IN THE COMING YEAR FIVE DAYS LATER THE US ANNOUNCED ITS INTENTION TO RESTRICT IMPORTS OF COTTON BROADCLOTH FROM SRI LANKA ON FEB 11 THE US IMPOSED RESTRICTIONS ON SHIRT IMPORTS FROM LAOS ON FEB 24 THE US SLAPPED RESTRICTIONS ON COTTON WOOL AND SILK BLEND TEXTILE PRODUCTS FROM BAHRAIN ON MARCH 9 THE US ANNOUNCED ITS INTENTIONS TO IMPOSE RESTRICTIONS ON WOOL TROUSER IMPORTS FROM COSTA RICA AND ON MEN'S WOOL SUITS FROM COLOMBIA ON MARCH 15 THE US IMPOSED IMPORT QUOTAS ON TROUSERS BREECHES AND SHORTS FROM MYANMAR BURMA ON MARCH 18 THE US ANNOUNCED IMPORT QUOTAS ON WOMEN'S AND GIRLS' SUITS FROM CHINA ON MARCH 22 THE US IMPOSED AN IMPORT QUOTA ON TWILLS AND SATEENS FROM THAILAND ON MARCH 23 THE US IMPOSED IMPORT QUOTAS ON WOMEN'S WOOL COATS FROM BULGARIA ON APRIL 15 THE US ANNOUNCED ITS INTENTION TO RESTRICT IMPORTS OF COTTON BROADCLOTH FROM PAKISTAN ON MAY 17 THE US IMPOSED A QUOTA ON IMPORTS OF DUCK FABRIC FROM THE UNITED ARAB EMIRATES ON MAY 26 THE US IMPOSED IMPORT QUOTAS ON COTTON COATS FROM PAKISTAN ON MAY 28 THE US IMPOSED RESTRICTIONS ON PAJAMA IMPORTS FROM GUATEMALA PERHAPS THE CLINTON ADMINISTRATION IS PLANNING TO POST US ARMY TROOPS IN MACEDONIA TO SERVE AS ADVANCE INSPECTORS FOR THE US CUSTOMS SERVICE TO KEEP A CLOSER WATCH ON MACEDONIAN EXPORTS LAURA JONES EXECUTIVE DIRECTOR OF THE US ASSOCIATION OF IMPORTERS OF TEXTILES AND APPAREL WONDERS WHO IS MAKING POLICY IN THIS ADMINISTRATION ISN'T ANYBODY HOME DOESN'T ANYBODY NOTICE MR BOVARD WRITES OFTEN ON TRADE 9306090021 930609 REGULATORY CHOKEHOLD HOW TO SMOTHER INNOVATION BY MATT RIDLEY VICE PRESIDENT AL GORE IS A GREAT BELIEVER IN TURNING ENVIRONMENTAL PROTECTION INTO A BUSINESS OPPORTUNITY ONE IN WHICH THE US CAN BECOME A WORLD LEADER IN THEORY ECONOMISTS AGREE THAT STRICT ENVIRONMENTAL STANDARDS CAN STIMULATE INVENTORS WHICH CAN PUT US MANUFACTURERS OF POLLUTION CONTROL EQUIPMENT IN A GOOD POSITION TO GAIN MARKET SHARE ABROAD AS OTHER COUNTRIES PASS SIMILAR REGULATIONS IN PRACTICE HOWEVER THEY CAN CITE FEW EXAMPLES OF THIS ACTUALLY OCCURRING INDEED THERE IS NOW A GROWING CONSENSUS THAT US ENVIRONMENTAL REGULATIONS FAR FROM ENCOURAGING INNOVATION ARE ADMINISTERED IN SUCH A WAY THAT THEY ACTIVELY DISCOURAGE IT AN ENVIRONMENTAL PROTECTION AGENCY ADVISORY COMMITTEE CONCLUDED IN 1991 THAT THE COMMON PATTERN OF RULE MAKING RESULTED IN A PERSISTENT NET DISINCENTIVE FOR TECHNOLOGY INNOVATION FOR ENVIRONMENTAL PURPOSES SINCE THEN THE IMPLEMENTATION OF THE 1990 CLEAN AIR ACT HAS MADE THE PROBLEM OF TECHNICAL DISCOURAGEMENT WORSE NOT BETTER TAKE THE CASE OF LIMITS ON EMISSIONS OF NITROGEN OXIDES NITROGEN OXIDES ARE AN IMPORTANT CONTRIBUTOR TO ACID RAIN AND URBAN SMOG ROUGHLY 25 OF THESE EMISSIONS COME FROM POWER PLANTS AT THE TIME THAT THE 1990 ACT PASSED CONGRESS THERE WERE ESSENTIALLY TWO PROVEN TECHNOLOGIES FOR CLEANING UP NITROGEN OXIDE EMISSIONS IN POWER PLANTS LOWNITROGENOXIDE BURNERS AND SELECTIVE CATALYTIC REDUCTION LOWNITROGENOXIDE BURNERS ARE CHEAP BUT NOT VERY EFFECTIVE THEY REMOVE ONLY UP TO 30 OF THE NITROGEN OXIDES IN A POWER PLANT'S EXHAUST STREAM AT A COST OF LESS THAN 200 A TON SELECTIVE CATALYTIC REDUCTION IS EXPENSIVE BUT EFFECTIVE IT CAN REDUCE NITROGEN OXIDE LEVELS BY AS MUCH AS 90 BUT ITS COST IS AT LEAST 2500 A TON ENVIRONMENTALISTS WANTED THE EPA TO DESIGNATE SELECTIVE CATALYTIC REDUCTION AS THE STANDARD TECHNOLOGY AND SET THE TARGET EMISSIONS REDUCTIONS ACCORDINGLY THEY ARGUED THAT JAPAN AND GERMANY HAD ALREADY WRITTEN THEIR LEGISLATION TO SUIT SELECTIVE CATALYTIC REDUCTION AND THAT REDUCTIONS OF LESS THAN 40 WOULD NOT BE SUFFICIENT TO MEET THE OZONENONATTAINMENT AND ACIDRAIN AIR QUALITY STANDARDS IN THE BILL BUT THE UTILITIES LOBBY PLAYED ITS CARDS WELL TOGETHER WITH COMBUSTION ENGINEERING INC A BIG MANUFACTURER OF NEW BOILERS IT BEGAN TO NUDGE EPA IN THEIR DIRECTION SELECTIVE CATALYTIC REDUCTION IT NOTED WAS EXTREMELY EXPENSIVE IT COULD ADD MORE THAN 5 TO THE COST OF GENERATING EACH KILOWATTHOUR OF ELECTRICITY AND IT WAS OVERKILL TAKING OUT 90 OF THE NITROGEN OXIDES IN THE EXHAUST STREAM FAR MORE THAN WAS NECESSARY TO GET NITROGEN OXIDE EMISSIONS DOWN TO ACCEPTABLE LEVELS THE BATTLE BETWEEN THESE TWO LOBBIES FOR EPA'S EAR IS STILL NOT OVER EVEN THOUGH THE BILL WAS PASSED IN 1990 THE RULES FOR HOW POLLUTERS WERE TO BE COMPELLED TO MEET THOSE GOALS WERE PUBLISHED ONLY IN NOVEMBER CONSULTATION ON THOSE RULES CONTINUES TO THIS DAY WHY WAS IT NECESSARY TO SPECIFY A TECHNOLOGY RATHER THAN AN EMISSION LIMIT IT IS ONE OF THE DIRTY SECRETS OF WASHINGTON THAT THE INGRAINED BUREAUCRATIC TRADITION OF COMMAND AND CONTROL ACTUALLY SUITS THE CORPORATE POLLUTERS THE REGULATORS AND THE MANUFACTURERS OF POLLUTIONCONTROL EQUIPMENT THE ONLY PEOPLE IT DOES NOT SUIT ARE THE TAXPAYERS AND CONSUMERS BLESSING TECHNOLOGIES IN THIS WAY HANDS THE VICTORS OF THE LOBBYING BATTLE A CAPTIVE MARKET WITH FORMIDABLE BARRIERS TO ENTRY AND MILITATES AGAINST INNOVATION IMAGINE WHAT WOULD HAVE HAPPENED IF DURING THE THREE YEARS IT HAS TAKEN TO IMPLEMENT THE AMENDMENTS A THIRD TECHNOLOGY HAD EMERGED CAPABLE OF CUTTING NITROGEN OXIDE EMISSIONS BY 60 FOR A SIMILAR COST TO LOWNITROGENOXIDE BURNERS THE RULES WOULD NOT MENTION IT SO A UTILITY THAT INSTALLED IT WOULD NOT SATISFY THE LAW THE UTILITIES WOULD NOT EVEN TEST IT LEST IT PROVED ITSELF IN WHICH CASE IT WOULD SPOIL THEIR CASE THAT 60 REDUCTIONS COULD BE ACHIEVED ONLY AT HIGH COST WITHOUT A FULLSCALE TEST THE TECHNOLOGY WOULD NEVER BE PROVED TO THE SATISFACTION OF THE RULE MAKERS AND THE MANUFACTURERS OF RIVAL TECHNOLOGIES THE MAKERS OF LOWNITROGENOXIDE BURNERS AND THE MERCHANTS OF SELECTIVE CATALYTIC REDUCTION WOULD DO EVERYTHING IN THEIR POWER TO CONCEAL ITS EXISTENCE HARDLY ENCOURAGEMENT TO INNOVATORS AS IT HAPPENS THIS TALE IS NOT IMAGINARY AT ALL A NEW TECHNOLOGY DID EMERGE WITH ALMOST THE CAPACITY OF SELECTIVE CATALYTIC REDUCTION AT ALMOST THE PRICE OF LOWNITROGENOXIDE BURNERS IT IS CALLED SELECTIVE NONCATALYTIC REDUCTION AND IT PROVIDES AN OBJECT LESSON IN THE DIFFICULTIES OF INTRODUCING ENVIRONMENTAL INNOVATIONS THE COMPANY THAT IS AT THE FOREFRONT OF DEVELOPING SELECTIVE NONCATALYTIC REDUCTION IS NALCO FUEL TECH A JOINT VENTURE BETWEEN NALCO A CHEMICAL COMPANY KEEN TO GET INTO ENVIRONMENTAL TECHNOLOGIES AND FUEL TECH A RESEARCH COMPANY WITH SOME VALUABLE EXPERIENCE AND PATENTS NALCO FUEL TECH KEPT INSISTING IT COULD REDUCE NITROGEN OXIDES FOR A FRACTION OF THE COST OF SELECTIVE CATALYTIC REDUCTION SIMPLY BY SQUIRTING UREA AND OTHER CHEMICALS WHICH IT CALLS NOXOUT INTO THE FURNACE AT THE RIGHT SPOT THE UREA WOULD REACT WITH THE NITROGEN OXIDES TO FORM NITROGEN AND CARBON DIOXIDE NALCO FUEL TECH HAD BEEN DEVELOPING THE TECHNOLOGY FOR YEARS THE COMPANY HAD DEMONSTRATED THE PROCESS ON INDUSTRIAL BOILERS USING A RANGE OF FUELSCOAL OIL WOOD WASTE CAR TIRES GARBAGEBUT NO UTILITIES HAD ORDERED IT THERE'S A MYTH OUT THERE SAYS NALCO FUEL TECH'S PRESIDENT PER CHRISTIANSEN THAT YOU BUILD A BETTER MOUSETRAP AND THE WORLD'LL BEAT A PATH TO YOUR DOOR IT'S JUST NOT TRUE YOU CAN'T JUST SIT BACK AND LET THE TECHNOLOGY SPEAK FOR ITSELF IN 1992 NALCO FUEL TECH AT LAST GOT THE CHANCE TO DEMONSTRATE ITS TECHNOLOGY AT WISCONSIN ELECTRIC POWER'S COALFIRED PLANT IN MILWAUKEE THE RESULTS WERE STUNNING NOXOUT REDUCED THE NITROGEN OXIDE EMISSIONS BY 60 FOR A COST OF 414 A TON ALTHOUGH THIS WAS TWICE THE CHEAPEST COST OF A NEW LOWNITROGENOXIDE BURNER IT WAS TWICE AS EFFECTIVE AND IN PRACTICE EVEN THE PRICE IS COMPETITIVE WITH THAT OF LOWNITROGENOXIDE BURNERS THIS IS BECAUSE LOWNITROGENOXIDE BURNERS REQUIRE THE REPLACEMENT OF THE WHOLE BURNER THE ANNUALIZED COST OF DOING THAT ON A PLANT WITH LESS THAN 20 YEARS OF LIFE LEFT WOULD BE WELL OVER 1000 A TON IN CONTRAST 85 OF NOXOUT'S COST IS RUNNING COST RATHER THAN CAPITAL COST SO NALCO FUEL TECH HAD ITS BETTER MOUSETRAP BUT BY THE MIDDLE OF 1992 ITS TRICKLE OF ORDERS HAD DRIED UP AND IT WAS LOSING MONEY ONLY ITS FOREIGN SALES IN TAIWAN GERMANY AND CZECHOSLOVAKIA HELD UP THE PROBLEM IN THE US WAS THAT THE REGULATIONS WERE STUCK IN THE EPA SUBJECT TO DELAYING TACTICS FROM THE OFFICE OF MANAGEMENT AND BUDGET AND ENDLESS WRANGLING OVER HOW THE RULES SHOULD BE WRITTEN THE STORY OF NALCO FUEL TECH MAY YET HAVE A HAPPY ENDING IT SIGNED ITS FIRST COMMERCIAL ORDER FROM A UTILITY THIS SPRING BUT ITS STORY ILLUSTRATES HOW MUCH HARDER IT IS TO INTRODUCE COSTSAVING NEW TECHNOLOGY INTO THE ENVIRONMENTAL PROTECTION BUSINESS THAN INTO ANY OTHER THE POLLUTERS WISH TO EXAGGERATE THE COSTS OF CLEANING UP AND CHEAP NEW TECHNOLOGIES BLOW THEIR COVER SO THEY LOBBY TO KEEP TECHNOLOGIES OFF THE LIST THE REGULATORS CARE ONLY ABOUT WHETHER A RULE IS ENFORCEABLE AND EFFECTIVE NOT WHETHER IT ENCOURAGES COSTEFFICIENCY THE ENVIRONMENTALISTS DISTRUST ANYTHING EXCEPT THE MOST COSTLY OPTION AND THE POOR OLD CONSUMER TO WHOM IS PASSED THE COST HAS NOBODY TO REPRESENT HIS INTEREST IN HAVING THE TECHNOLOGY THAT DOES THE JOB MOST CHEAPLY MR RIDLEY IS A FORMER SCIENCE EDITOR AND AMERICAN EDITOR OF THE ECONOMIST HE IS NOW A FREELANCE JOURNALIST CURRENTLY WRITING A BOOK ON EVOLUTION 9306090020 930609 NORTHWEST AIR'S GIVEBACK' PACT FACES REJECTION MACHINISTS AT KEY LOCALS SAID TO VOTE HEAVILY AGAINST THE CONCESSIONS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL NORTHWEST AIRLINES' CONCESSIONARY PACT WITH THE MACHINISTS' UNION APPEARS HEADED FOR DEFEAT THROWING INTO QUESTION THE STRUGGLING AIRLINE'S PLAN TO CUT LABOR COSTS AND DEFER DEBT PAYMENTS ALTHOUGH THE TALLY ISN'T COMPLETE MEMBERS OF THE INTERNATIONAL ASSOCIATION OF MACHINISTS AT SEVERAL KEY LOCALS ARE SAID TO BE VOTING OVERWHELMINGLY AGAINST THE PACKAGE THE PACT REACHED LAST MONTH CALLS FOR MACHINISTS TO CONTRIBUTE 346 MILLION OF THE 886 MILLION THE AIRLINE SEEKS TO SLICE FROM ITS LABOR COSTS OVER THREE YEARS AN INDIVIDUAL FAMILIAR WITH THE VOTING SAID ANGRY MEMBERS ALREADY HAVE REJECTED THE PACT IN THE MINNEAPOLIS ST PAUL DETROIT ATLANTA AND MEMPHIS AREAS BECAUSE MEMBERS AT THOSE LOCATIONS MAKE UP 15000 OF THE 26000 MACHINISTS AT NORTHWEST IT WOULD TAKE A HUGE SWING IN THE OTHER DIRECTION AT OTHER LOCATIONS FOR THE PACT TO BE APPROVED IT'S VERY BLEAK THE PERSON FAMILIAR WITH THE VOTE COUNT SAID IF THE MACHINISTS REJECT THE PACT THE COMPANY'S TWOPART RESTRUCTURING PLAN COULD QUICKLY UNRAVEL NORTHWEST SAYS THAT WITHOUT THE LABOR CONCESSIONS ITS LENDERS WON'T GO ALONG WITH A PLAN TO REDUCE DEBT PAYMENTS DUE FROM 1994 THROUGH 1996 TO 500 MILLION FROM THE CURRENT 204 BILLION THAT WOULD LEAVE NORTHWEST WITH TWO DIFFICULT CHOICES RETURN TO THE BARGAINING TABLE OR CONSIDER FILING FOR PROTECTION AGAINST ITS CREDITORS UNDER BANKRUPTCY LAWS OFFICIALS AT NORTHWEST THE ST PAUL MINN UNIT OF CLOSELY HELD WINGS HOLDINGS INC SAID THEY'VE HEARD RUMORS OF NEGATIVE VOTES BUT RICHARD HIRST THE AIRLINE'S GENERAL COUNSEL SAID THAT BECAUSE MANY LOCATIONS HAVEN'T VOTED WE'RE NOT DRAWING ANY CONCLUSIONS FIRMLY YET BUT HE ADDED THAT IF THERE IS A NEGATIVE VOTE ON UNION CONCESSIONS NORTHWEST PROBABLY WILL MEET WITH UNION LEADERS TO DECIDE WHAT IF ANYTHING CAN BE DONE TO CURE THE CAUSES EARLIER THIS WEEK THE AIRLINE WARNED OF MORE DRASTIC CUTS IN THE EVENT OF A BANKRUPTCYLAW FILING IN NOTICES POSTED AT AIRPORTS THIS WEEK NORTHWEST TOLD EMPLOYEES THAT IN A JUDICIAL REORGANIZATION A CONDITION OF NECESSARY FINANCING WILL BE IMMEDIATE WAGE REDUCTIONS OF ABOUT TWICE THE AMOUNT SOUGHT THROUGH VOLUNTARY CONCESSIONS JOHN MASSETTI SECRETARYTREASURER OF THE MACHINISTS' DISTRICT THAT REPRESENTS THE NORTHWEST WORKERS SAID THE UNION WON'T RELEASE RESULTS UNTIL THE SECRETBALLOT WALKIN VOTING IS COMPLETED IN ALL 104 OF THE UNIONS LOCATIONS ACROSS THE COUNTRY BY FAR THE BIGGEST UNION AT NORTHWEST THE MACHINISTS' MEMBERS INCLUDE GROUND CREWS RESERVATION AGENTS TICKET AGENTS AND CLERICAL EMPLOYEES MR MASSETTI THE MACHINISTS' OFFICIAL ACKNOWLEDGED THAT MEMBERS VOTING ON THE PACKAGE WERE NOT HAPPY ANOTHER SIGN OF THE NEGATIVE VOTE WAS THAT MANY WERE CASTING BALLOTS WITHOUT EVEN LISTENING TO DETAILED PRESENTATIONS BY THEIR LEADERS UNDER THE PACKAGE THE AVERAGE MACHINIST WOULD HAVE WAGES AND BENEFITS CUT BY 108 OVER THE THREE YEARS IN RETURN FOR STOCK AND A PROMISE TO REDEEM THE STOCK PLUS DIVIDENDS WITHIN 10 YEARS THE WORKERS ALSO WOULD GET JOB GUARANTEES AND A PROMISE THAT WAGES WOULD SNAP BACK AFTER THREE YEARS TO THE HIGHER OF PRECONCESSION LEVELS AT NORTHWEST OR TO INDUSTRY LEVELS AFTER THREE YEARS BUT MEMBERS APPEAR TO BE IGNORING THEIR LEADERS' ARGUMENTS THAT THE HISTORIC EMPLOYEE INVESTMENT AND JOB SECURITY AGREEMENT WAS THE BEST THAT COULD BE ACHIEVED PEOPLE ARE UPSET SAID ONE MACHINISTS' OFFICIAL THEY DIDN'T PUT NORTHWEST INTO DEBT AND ALL OF A SUDDEN THEY'RE ASKED TO DIG DEEP SOME 9000 FLIGHT ATTENDANTS REPRESENTED BY THE TEAMSTERS UNION ARE ALSO VOTING THIS MONTH ON A PACKAGE THAT CALLS FOR THEM TO GIVE UP 82 MILLION IN WAGES AND BENEFITS THE NORTHWEST UNIT OF THE AIR LINE PILOTS ASSOCIATION WHICH DOESN'T HAVE AN AGREEMENT WITH THE COMPANY HAS CRITICIZED THE DEALS MADE BY THE OTHER TWO UNIONS ITS EXECUTIVE COUNCIL IS MEETING THIS WEEK TO MAP STRATEGY 9306090019 930609 WHO'S NEWS HILGER TO RETIRE AS HOECHST CHAIRMAN NEXT YEAR DORMANN NAMED SUCCESSOR A WALL STREET JOURNAL ROUNDUP FRANKFURT HOECHST AG ANNOUNCED THE RETIREMENT OF ITS CHAIRMAN WOLFGANG HILGER WHO WAS HEAVILY CRITICIZED FOLLOWING A CHAIN OF ENVIRONMENTAL ACCIDENTS AT THE GERMAN CHEMICAL COMPANY THIS YEAR MR HILGER WILL STAY IN HIS POST UNTIL NEXT APRIL 26 AND WILL BE SUCCEEDED BY JUERGEN DORMANN WHO HAS BEEN RESPONSIBLE FOR HOECHST'S FINANCIAL AND COMMUNICATIONS SECTORS SINCE 1987 A HOECHST SPOKESMAN SAID MR HILGER'S DEPARTURE IS A LONGPLANNED STEP WITH HIS CONTRACT EXPIRING NEXT YEAR THE EXECUTIVE IS NEAR RETIREMENT AGE AS WELL THE SPOKESMAN SAID ADDING IT IS AN UNWRITTEN LAW AT HOECHST TO STEP DOWN AT THE LATEST AT AGE 65 MR HILGER WILL TURN 64 IN NOVEMBER MR HILGER RESISTED INTENSE PUBLIC PRESSURE TO RESIGN THIS SPRING FOLLOWING AN EMBARRASSING SERIES OF ACCIDENTS AT HOECHST PLANTS IN FEBRUARY AND MARCH CRITICIZED BY POLITICIANS AND ENVIRONMENTALISTS FOR NOT TAKING POLLUTION AND SAFETY CONCERNS SERIOUSLY ENOUGH MR HILGER STOOD STIFFLY BY HIS DEFENSE THAT THE ACCIDENTS WERE UNFORTUNATE COINCIDENCES THAT COULD HAVE HAPPENED AT ANY COMPANY AND WEREN'T THE RESULT OF A SYSTEMIC FAILURE NEVERTHELESS THE GLOBAL IMAGE OF HOECHST WAS DENTED BY THE NEGATIVE PUBLICITY AND THE COMPANY'S PERCEIVED LACK OF FRANKNESS ABOUT THE ACCIDENTS AS THE FIRST NONSCIENTIST TO BE NAMED TO THE TOP POST AT HOECHST THE 53YEAROLD MR DORMANN REPRESENTS A BREAK WITH TRADITION OBSERVERS SAID SPECULATING THAT THE ADVISORY BOARD'S EARLY ANNOUNCEMENT OF THE NEW APPOINTMENT WAS AIMED AT DISPERSING AS SOON AS POSSIBLE THE NEGATIVE PUBLICITY ASSOCIATED WITH MR HILGER'S CHAIRMANSHIP AS FINANCE CHIEF MR DORMANN IS ONE OF THE FEW MEMBERS ON THE CURRENT MANAGING BOARD WHO IS VIEWED AS FREE OF RESPONSIBILITY FOR ANY SAFETY OR ENVIRONMENTAL LAPSES THE COMPANY MAY HAVE COMMITTED MR DORMANN ALSO HAS BEEN A MEMBER OF HOECHST'S BOARD SINCE 1984 HOECHST COMPANY OFFICIALS INSISTED THAT MR HILGER'S DEPARTURE HAS NOTHING TO DO WITH RU486 THE ABORTION PILL MADE BY HOECHST'S FRENCH SUBSIDIARY HOECHST HAS BEEN RELUCTANT TO WIDEN DISTRIBUTION OF THE CONTROVERSIAL PRODUCT IT'S BEEN CLEAR TO US FOR SOME TIME THAT HILGER WAS THE MAJOR OPPOSITION TO THE NORMAL DISTRIBUTION OF RU486 IN THE US AND THE REST OF THE WORLD SAID ELEANOR SMEAL PRESIDENT OF THE FEMINIST MAJORITY FOUNDATION THE EXECUTIVE CHANGE AT HOECHST SHOULD EXPEDITE THE PROCESS OF BRINGING THE DRUG TO THE US SHE SAID BUT A COMPANY SPOKESMAN EMPHASIZING THAT THE CURRENT POLICY TOWARD WIDER MARKETING OF THE ABORTION PILL ISN'T THE DECISION OF ONE MAN ALONE BUT OF THE WHOLE BOARD SAID A RADICAL POLICY REVERSAL WHEN MR DORMANN TAKES OVER ISN'T LIKELY IT HASN'T YET BEEN DECIDED IF MR HILGER WILL SERVE HOECHST IN ANY CAPACITY AFTER HE STEPS DOWN AS CHAIRMAN THE COMPANY SAID 9306090018 930609 LEISURE & ARTS BOOKSHELF SOME NEW SMUDGES ON THE POLICE BLOTTER BY TOM NOLAN SCOTT TUROW'S LATEST LEGAL THRILLER PLEADING GUILTY FARRAR STRAUS & GIROUX 386 PAGES 24 IS ALREADY MOVING QUICKLY OUT OF THE STORES PRESIDENT CLINTON WAS SEEN BUYING A COPY WHEN HE SHOULD HAVE BEEN READING THE LESSSPRY WORKS OF ANOTHER LAWYER BUT NEVER MIND PLEADING GUILTY DISPLAYS THE SAME IMPRESSIVE NARRATIVE ABILITIES AND WHIPLASH PLOTTING THAT MARKED MR TUROW'S FIRST BESTSELLER PRESUMED INNOCENT AND NOT HIS SECOND THE BURDEN OF PROOF THE FIRSTPERSON VOICE IN THIS ACCOUNT BELONGS TO MACK MALLOY FORMER POLICE OFFICER AND NOW LACKLUSTER PARTNER IN THE MIDWESTERN LAW FIRM OF GAGE & GRISWELL WHEN BERT KAMIN G&G'S MOST ECCENTRIC LAWYER TAKES AN UNANNOUNCED LEAVE OF ABSENCE AT THE SAME TIME THAT 55 MILLION GOES MISSING FROM AN ESCROW FUND EXCOP MALLOY IS TAPPED TO FIND THE ROGUE ATTORNEY AND SET MATTERS RIGHT WITHOUT A SCANDAL MALLOY'S QUEST LASTS 11 DAYS AND UNCOVERS HIGHSTAKES GAMBLING OFFSHORE BANK ACCOUNTS AND A CORPSE IN THE LATE EVENINGS THE SECRETIVE TROUBLESHOOTER DICTATES HIS FINDINGS ONTO TAPES WHICH MAKE UP THE TEXT OF THIS BOOK SURELY NO DIVORCED REFORMEDDRUNK DOWNWARDLYDRIFTING MEDIOCRE MOUTHPIECE THRUST WITHOUT WARNING INTO DANGEROUS INTRIGUE EVER WAS BLESSED WITH A GREATER GIFT OF GAB THAN MACK MALLOY THE DICTATION DEVICE ALLOWS MALLOY AS WELL AS THE READER TO BE UNSURE OF THE STORY'S OUTCOME UNTIL ITS FINAL PAGE IT'S NOT ONLY THE FATE OF BERT KAMIN AND THE MISSING MILLIONS THAT ARE AT STAKE MALLOY HIMSELF GRAPPLES WITH PERSONAL DEMONS THAT CAST HIS OWN ULTIMATE LOYALTIES AND BEHAVIOR INTO DOUBT THE STORY'S DEEDS AND ETHICAL STRUGGLES TAKE PLACE IN A VARIETY OF URBAN SETTINGS THE ENCLAVES OF RICH MEN NEIGHBORHOOD HANGOUTS A SPORTS STADIUM A STEAM BATH A COURTROOM AND THE POLICE HOUSE A QUICK TRIP TO CENTRAL AMERICA ADDS A SPLASH OF INTERNATIONAL COLOR THE BOOK'S HOST OF MAJOR AND MINOR CHARACTERS ARE DEFTLY DRAWN FROM MARTIN GOLD THE SUAVE G&G MANAGING PARTNER WHOM EVEN MALLOY RESPECTS TO NORA THE NARRATOR'S EXWIFE WHO CAN STILL WOUND MALLOY WITH A SINGLE SENTENCE MR TUROW'S PLOT TWISTS ARE NUMEROUS AND EFFECTIVE RIGHT UP TO THE LAST DISCOURAGING TURN OF THE SCREW AFTER SEVERAL PLAYS AND NOVELS JIM LEHRER COHOST OF PBS' THE MACNEIL/LEHRER NEWSHOUR HAS TURNED OUT BLUE HEARTS RANDOM HOUSE 214 PAGES 20 HIS FIRST SPY THRILLER SET MOSTLY IN 1990 THIS SLIM AND WELLCRAFTED ADVENTURE SHOWS THE SAME EASYGOING THOROUGH PROFESSIONALISM THAT SEEMS TO CHARACTERIZE ALL MR LEHRER'S ENDEAVORS CHARLES AVENUE HENDERSON THE CENTRAL CHARACTER IS A RETIRED CIA MAN NOW RUNNING A WEST VIRGINIA BEDANDBREAKFAST WITH HIS WIFE A CASUAL REMARK BY HENDERSON AFTER THE FUNERAL OF AN OLD ASSOCIATE IS MISCONSTRUED AS A BLACKMAIL THREAT BY ANOTHER FORMER OPERATIVE AND HENDERSON'S TRANQUIL EXISTENCE IS DISRUPTED BY A SERIES OF NEARFATAL ACCIDENTS WHO IS STALKING HIM AND WHY THE MOST LIKELY CANDIDATE IS BRUCE CONN CLARK ANOTHER AGENCY VETERAN AND A FORMER SECRETARY OF STATE HENDERSON AND CLARK CONNECTED ONLY ONCE DURING THEIR CIA TENURE TO CONDUCT AN URGENT INHOUSE INVESTIGATION IN THE WAKE OF THE ASSASSINATION OF JOHN F KENNEDY WHAT INFORMATION FOUND OR HIDDEN IN 1963 IS JEOPARDIZING HENDERSON'S LIFE 27 YEARS LATER THE ANSWER IS SOUGHT AMONG RUSSIAN DEFECTORS POSSIBLE DOUBLE OR TRIPLE AGENTS WITH REALLIFE CIA LEGEND JAMES ANGLETON PUTTING IN A CAMEO APPEARANCE SPOUTING HIS WILDERNESSOFMIRRORS THEORIES OTHER REAL PEOPLE INCLUDING HYPER MACNEIL/LEHRER REGULAR MARK SHIELDS LEND VERISIMILITUDE OR INSIDE HUMOR BLUE HEARTS FINALLY IS NEITHER ANOTHER WHOKILLEDJFK SPECULATION NOR A COZY LIONINWINTER FABLE BUT A CONVINCING EXPLORATION OF A POSTCOLD WAR MORAL DILEMMA PATRICIA D CORNWELL IS ANOTHER MYSTERY WRITER WHOSE FICTION BENEFITS FROM EXPERTISE GATHERED IN ANOTHER LIFE A FORMER REPORTER WHO WORKED FOR SIX YEARS IN THE CHIEF MEDICAL EXAMINER'S OFFICE IN VIRGINIA MS CORNWELL NOW WRITES A POPULAR CRIME SERIES CENTERED ON DR KAY SCARPETTA CHIEF VIRGINIA MEDICAL EXAMINER CRUEL & UNUSUAL SCRIBNERS 356 PAGES 21 STARTS WITH DR SCARPETTA PERFORMING A POSTEXECUTION AUTOPSY ON RONNIE JOE WADDELL CONVICTED OF THE BRUTAL MURDER OF A TV ANCHORWOMAN BUT SUBSEQUENT ASSAULTS OCCUR THAT ARE FRIGHTENINGLY SIMILAR TO THAT KILLING COPYCAT CRIMES OR INDICATIONS THAT WADDELL WAS NOT GUILTY THERE IS ALSO THE POSSIBILITY THAT THE EXECUTED MAN IS NOT EVEN WADDELL DR SCARPETTA WORKING WITH GRUFFBUTTRUEBLUE POLICE LIEUTENANT PETE MARINO ENLISTS THE AID OF HER COMPUTERLITERATE TEENAGE NIECE LUCY IN SORTING OUT THE ELUSIVE TRUTH HIGHTECH HIJINKS GHOULISH FORENSIC DETAIL AND TREACHEROUS OFFICE POLITICS ALL FIGURE IN THE MYSTERY'S UNRAVELING WHILE DR SCARPETTA'S COMPLEX RELATIONSHIPS WITH HER TEMPERAMENTAL NIECE AND WITH AN ADVERSARIAL CIVILLIBERTIES CHAMPION GIVE THE NOVEL WELCOME DIMENSION BUT WHILE MS CORNWELL SUCCEEDS IN CREATING AND SUSTAINING A MOOD OF CREEPY TENSION THE EVENTUAL EXPLANATION OF ALL THESE GROTESQUE EVENTS INVOLVES A CONSPIRACY OF OFFICIAL MALFEASANCE THAT BOGGLES THE MIND EVEN IN THESE JADED TIMES 9306090017 930609 TUESDAY'S MARKETS DOLLAR WOES TRIM STOCKS AND BONDS US CURRENCY HITS LOW AGAINST YEN INDUSTRIALS OFF 2159 BY ANITA RAGHAVAN AND MICHAEL R SESIT STAFF REPORTERS OF THE WALL STREET JOURNAL STOCKS AND BONDS CRUMBLED AFTER THE DOLLAR SLID TO A NEW POSTWORLD WAR II LOW AGAINST THE YEN THE DOW JONES INDUSTRIAL AVERAGE FELL 2159 POINTS TO 351054 STANDARD & POOR'S 500STOCK INDEX TUMBLED 298 POINTS TO 44471 AND THE NASDAQ COMPOSITE INDEX LOST 687 POINTS TO 68774 THE DOLLAR HITTING NEW LOWS AGAINST THE YEN RAISES SOME CONCERNS THAT THE FEDERAL RESERVE MAY HAVE TO BOOST INTEREST RATES TO DEFEND THE DOLLAR SAID ARTHUR MICHELETTI INVESTMENT STRATEGIST AT BAILARD BIEHL & KAISER IN SAN MATEO CALIF SUCH A MOVE WOULD HURT STOCKS WHICH HAVE BEEN BUOYED BY LOW INTEREST RATES MR MICHELETTI SAID THE DOLLAR'S DECLINE AGAINST THE YEN ALSO IS FUELING FEARS OF INFLATION'S HEATING UP WHEN THE DOLLAR WEAKENS AGAINST THE YEN IT MAKES JAPANESE GOODS SUCH AS CARS MORE EXPENSIVE FOR US CONSUMERS IT ALSO GIVES US COMPANIES THAT COMPETE WITH JAPANESE FIRMS THE LEEWAY TO RAISE THEIR PRICES IN FOREIGN EXCHANGE MARKETS YESTERDAY THE DOLLAR TUMBLED TO 106 YEN A NEW POSTWORLD WAR II LOW BEFORE REBOUNDING SOMEWHAT ON DOLLAR PURCHASES BY THE FEDERAL RESERVE BANK OF NEW YORK EARLIER IN ASIAN TRADING JAPAN'S CENTRAL BANK HAD INTERVENED WITHOUT MUCH SUCCESS TRADERS AND ANALYSTS ARE SKEPTICAL THAT THE DOLLAR'S SAGGING FORTUNES WILL REVERSE BEFORE JULY 7 WHEN SENIOR FINANCE AND MONETARY OFFICIALS FROM THE GROUP OF SEVEN MAJOR INDUSTRIAL COUNTRIES MEET AT AN ECONOMIC SUMMIT IN TOKYO UNTIL THE ECONOMIC SUMMIT I EXPECT THE CLINTON ADMINISTRATION TO USE THE THREAT OF DOLLAR DEPRECIATION AS A CROWBAR TO GAIN CONCESSIONS FROM JAPAN ON TRADE ISSUES SAID CARL WEINBERG CHIEF ECONOMIST AT HIGH FREQUENCY ECONOMICS AN ECONOMIC CONSULTING FIRM SO I'M EXPECTING THE DOLLAR TO CONTINUE TO BE VULNERABLE AND SO DOES EVERYONE ELSE WORLDWIDE STOCK PRICES DECLINED IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX LOST 035 TO 10728 IN MAJOR MARKET ACTION STOCK PRICES FELL VOLUME TOTALED 2381 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1334 ISSUES DECLINED AND 621 ADVANCED BOND PRICES DROPPED LOSING ALL OF MONDAY'S ADVANCE THE TREASURY'S 30YEAR BENCHMARK ISSUE LOST HALF A POINT OR 5 FOR EACH 1000 FACE AMOUNT THE YIELD ROSE TO 691 FROM 687 MONDAY THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE DOLLAR WAS QUOTED AT 16245 MARKS AND 10640 YEN COMPARED WITH 16205 MARKS AND 10720 YEN MONDAY 9306090016 930609 HEARD ON THE STREET AS CONGLOMERATE IMAGE HURTS SEAGRAM STOCK BULLS SENSE A CHEAP BET ON GLOBAL RECOVERY BY JONATHAN CLEMENTS STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK AFTER THE STOCK MARKET BATTERING OF THE PAST TWO WEEKS SEAGRAM SHAREHOLDERS MAY FEEL LIKE A STIFF DRINK BUT A TONIC COULD LIE JUST AROUND THE CORNER THE LIQUOR AND JUICE MAKER WHICH IS 37OWNED BY MONTREAL'S BRONFMAN FAMILY ANNOUNCED ON MAY 26 THAT IT HAD ACCUMULATED A 57 POSITION IN TIME WARNER AND SAID IT PLANS TO BOOST THAT STAKE TO AS MUCH AS 15 JUST BEFORE THE ANNOUNCEMENT SEAGRAM'S STOCK CLOSED AT 30 1/8 A HAIR BELOW ITS 52WEEK HIGH OF 30 3/8 SINCE THEN THE STOCK HAS TUMBLED 12 TRADING LATE YESTERDAY AT 26 1/2 OFF 3/8 WHAT'S THE BIG WORRY NO SANE INVESTOR IS GOING TO LOOK AT SEAGRAM NOW AND THINK THAT IT WANTS TO BECOME A GLOBAL BEVERAGE BUSINESS IN TERMS OF ITS STOCKMARKET IMAGE SAYS LEHMAN BROTHERS ANALYST JOHN WAKELY WHO LAST WEEK DOWNGRADED HIS OPINION OF THE STOCK WHAT'S HAPPENED NOW IS THAT I'M BEING ASKED TO INVEST IN EDGAR BRONFMAN FUND MANAGEMENT LIMITED MR WAKELY RECKONS THAT IF SEAGRAM IS PERCEIVED AS A CONGLOMERATE RATHER THAN A TOPNOTCH BEVERAGE COMPANY ITS STOCK WILL TRADE AT A LOWER MULTIPLE OF EARNINGS IT'S NOW TRADING AT MORE THAN 17 TIMES EARNINGS FOR THE PAST FOUR QUARTERS YET BULLISH MONEY MANAGERS ARE UNDAUNTED BY THE INVESTMENT IN TIME WARNER THEY CONCEDE THAT THE MOVE WILL KNOCK A FEW CENTS A SHARE OFF SEAGRAM'S REPORTED EARNINGS BECAUSE THE COMPANY IS BORROWING MONEY TO BUY TIME WARNER STOCK THE INTEREST SEAGRAM WILL PAY ON THAT DEBT IS GREATER THAN THE DIVIDENDS IT WILL RECEIVE FROM TIME WARNER BUT THE BULLS ARGUE THAT THIS MODEST DENT TO EARNINGS WILL BE TINY COMPARED WITH THE PROFIT SURGE THAT THEY EXPECT IN SEAGRAM'S OTHER BUSINESSES THEY LOOK AT SEAGRAM AS A CHEAP WAY TO PLAY THE GLOBAL ECONOMIC RECOVERY SEAGRAM AFTER ALL ISN'T JUST CHIVAS REGAL AND TROPICANA FRUIT JUICE THE MONTREAL COMPANY ALSO HAS A 243 STAKE IN DUPONT THE WILMINGTON DEL CHEMICAL COMPANY SEAGRAM'S STAKE IN DUPONT IS VALUED AT WELL OVER 8 BILLION THAT MEANS THAT ALONG WITH EVERY 2650 SEAGRAM SHARE PURCHASED YOU EFFECTIVELY GET A DUPONT HOLDING VALUED AT 23 WE'RE BUYING THE STOCK HERE SAYS CHARLES MAYER COMANAGER OF THE 34 BILLION FINANCIAL INDUSTRIAL INCOME FUND WITH SEAGRAM'S STOCK PRICE AT 26 27 YOU'RE GETTING THE BEVERAGE BUSINESS ALMOST FOR NOTHING SEAGRAM MAY BE CHEAP BASED ON BREAKUP VALUE BUT THAT'S NOT THE WAY THE MARKET VALUES SEAGRAM ARGUES WOLODYMYR WRONSKYJ MANAGER OF THE 3 BILLION DREYFUS FUND INSTEAD HE BELIEVES THE FOCUS IS ON EARNINGS YET THERE TOO HE SEES THE OUTLOOK AS ROSY RIGHT NOW IT IS NOT A TIME TO SELL SEAGRAM MR WRONSKYJ ARGUES AS THE ECONOMIES OF THE WORLD RECOVER CYCLICALLY DUPONT WILL DO WELL PROBABLY DUPONT IS GOING TO BE A MUCH BIGGER CONTRIBUTOR TO EARNINGS THAN IT IS TODAY ANALYSTS LOOK FOR DUPONT'S EARNINGS TO SOAR TO 365 A SHARE IN 1994 FROM A LITTLE OVER 3 A SHARE THIS YEAR THAT IN TURN SHOULD BUOY SEAGRAM'S PROFIT FIRST BOSTON ANALYST MARTIN ROMM IS LOOKING FOR SEAGRAM TO EARN 2 A SHARE IN THE YEAR ENDING IN JANUARY 1994 AND 235 IN THE YEAR AFTER THAT HE SAYS SEAGRAM'S PROFIT WILL BE DRIVEN BY AN ECONOMIC REBOUND THAT WILL HELP DUPONT BUT HE ALSO ENVISIONS BETTER DAYS FOR BEVERAGES THE LIQUOR BUSINESS WILL TURN UP IF YOU SEE AN IMPROVEMENT IN THE EUROPEAN ECONOMIC SITUATION OR AN IMPROVEMENT IN THE FAR EASTERN MARKETPLACE IF THE OUTLOOK FOR SEAGRAM IS SO BRIGHT WHY IS THE STOCK OVERLOOKED GEORGE DOMOLKY MANAGER OF FIDELITY CANADA FUND NOTES THAT ONLY A HANDFUL OF US ANALYSTS FOLLOW THE STOCK SOME PEOPLE SAY THAT IT'S AN INDUSTRIAL COMPANY BECAUSE OF DUPONT AND SOME SAY IT'S A CONSUMER COMPANY BECAUSE OF THE DISTILLER HE SAYS ANALYSTS LIKE TO FOLLOW COMPANIES THAT ARE MORE SIMPLE SEAGRAM ALSO SUFFERS BECAUSE OF CONCERN THAT THE BRONFMAN FAMILY WON'T NECESSARILY ACT IN THE BEST INTERESTS OF OTHER SHAREHOLDERS AND SOME ANALYSTS FEAR THE FAMILY MAY GET DISTRACTED FROM SEAGRAM'S OTHER BUSINESSES BY THE TIME WARNER STAKE BUT FINANCIAL INDUSTRIAL'S MR MAYER HASN'T ANY SUCH WORRIES HE SAYS THE BRONFMANS' BIG SEAGRAM STAKE IS A PLUS I KIND OF LIKE IT WHEN MANAGEMENT HAS A GOOD CHUNK OF THE STOCK BECAUSE THEN THEY OUGHT TO WORK IN THE INTEREST OF SHAREHOLDERS HE SAYS THE WORRY IS THAT THEY MAKE A RUN FOR THE WHOLE OF TIME WARNER I CAN'T SEE THEM DOING THAT MR MAYER SAYS IT MAKES SENSE FOR SEAGRAM TO TAKE A PARTIAL STAKE IN TIME WARNER BECAUSE THE ENTERTAINMENT GIANT IS LIKELY TO GROW FASTER THAN SEAGRAM'S LIQUOR OPERATIONS THE LIQUOR BUSINESS THROWS OFF A LOT OF CASH HE NOTES DO YOU WANT TO INVEST IN A MATURE BUSINESS OR DO YOU WANT TO INVEST THE MONEY ELSEWHERE YOU MIGHT AS WELL PUT THAT CASH IN SOME GROWTH AREAS YEAR ENDED JAN 31 1993 FIRST QUARTER APRIL 30 1993 AVERAGE DAILY TRADING VOLUME COMMON SHARES OUTSTANDING 9306090015 930609 YOUNG FAMILIES FIND BUYING A HOME IS STILL AN ELUSIVE GOAL DESPITE DROP IN INTEREST RATES INSUFFICIENT SAVINGS CREATE BARRIER TO ENTERING MARKET BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL MANY YOUNG FAMILIES REMAIN LOCKED OUT OF THE HOUSING MARKET DESPITE THE PLUNGE IN INTEREST RATES BECAUSE THEY LACK THE SAVINGS TO BUY A FIRST HOME CONCLUDES A NEW REPORT CONSTRAINING THEIR ABILITY TO SAVE IS THE FACT THAT INCOME AMONG YOUNG RENTERS HAS DECLINED OVER THE PAST FOUR YEARS WHILE AT THE SAME TIME RENTS HAVE REMAINED HIGH ACCORDING TO THE STATE OF THE NATION'S HOUSING 1993 REPORT BY HARVARD UNIVERSITY'S JOINT CENTER FOR HOUSING STUDIES THAT RENTS WOULD REMAIN HIGH COMES AS SOMETHING OF A SURPRISE GIVEN BLOATED VACANCY RATES IN MANY MARKETS WHERE TOO MANY APARTMENTS WERE BUILT DURING THE 1980S H JAMES BROWN DIRECTOR OF THE CENTER SAID THIS OVERSUPPLY APPEARS MOST CONCENTRATED AT THE UPPER END OF THE APARTMENT MARKET BUT THAT RENTS HAVE GONE UP AT THE LOW END BECAUSE THE SUPPLY KEEPS DIMINISHING FROM DEMOLITION AND LACK OF NEW CONSTRUCTION MEASURED IN 1989 DOLLARS THE MEDIAN MONTHLY GROSS RENTS PAID BY POOR HOUSEHOLDS LIVING IN UNSUBSIDIZED HOUSING JUMPED 39 TO 359 IN 1991 FROM 258 IN 1974 ACCORDING TO THE REPORT MEANWHILE THE MEDIAN INCOME OF THE POTENTIAL FIRSTTIME BUYING RENTER DEFINED AS A MARRIED COUPLE FROM 25 TO 29 YEARS OLD DROPPED TO 24305 LAST YEAR FROM 26600 IN 1989 WITH RENTAL COSTS AS A SHARE OF INCOME NOW AT A 25YEAR HIGH AMONG THESE YOUNG HOUSEHOLDS THE REPORT FOUND THAT LESS THAN A THIRD HAVE THE MINIMUM 26720 IN ANNUAL INCOME PLUS 7978 IN CASH TO MEET TYPICAL DOWNPAYMENT AND CLOSING COSTS TO QUALIFY FOR A MORTGAGE THEY FAIL TO QUALIFY EVEN THOUGH CURRENT INTEREST RATES OF BELOW 8 COULD MAKE MORTGAGE PAYMENTS EVEN LOWER THAN RENT WITH TAX SAVINGS INCLUDED IT'S REALLY THE DOWNPAYMENT THAT IS CONSTRAINING A LOT OF PEOPLE RATHER THAN THE MONTHLY PAYMENT MR BROWN SAID THERE ARE A LOT OF PEOPLE WHO COULD LOWER THEIR MONTHLY PAYMENT BY COMING INTO OWNERSHIP BUT DON'T HAVE THE DOWNPAYMENT TO DO IT DESPITE HAVING THESE POTENTIAL BUYERS BLOCKED FROM THE MARKET THE REPORT FINDS THAT THE NATION'S OVERALL SINGLEFAMILY MARKET IS POISED FOR SOLID GROWTH FOR THE REST OF THIS DECADE THAT WILL COME AS AGING BABY BOOMERS BUY UP INTO BIGGER HOMES AND OTHER FIRSTTIME BUYERS PRICED OUT OF THE MARKET DURING THE LAST DECADE ARE NOW ABLE TO GET IN THOUGH HOUSEHOLD FORMATIONS HAVE SLOWED MARKEDLY MR BROWN SAID THIS WILL MOST HINDER THE MULTIFAMILY MARKET THAT FOCUSES HEAVILY ON YOUNG FAMILIES WITH THE AVERAGE AGE OF THE TRADEUP BUYER NOW AT 39 HE SAID THE 1990S MARKET WILL BE MOST DRIVEN BY THOSE BABY BOOMERS FOLLOWED BY THE FIRSTTIME BUYER THE ANNUAL HOUSING REPORT SPONSORED BY THE FORD FOUNDATION IS TO BE PRESENTED TOMORROW IN WILLIAMSBURG VA AT A HOUSING LEADERSHIP CONFERENCE TO BE ATTENDED BY VARIOUS CLINTON ADMINISTRATION OFFICIALS INCLUDING HENRY CISNEROS SECRETARY OF HOUSING AND URBAN DEVELOPMENT AND ROBERT RUBIN THE PRESIDENT'S ASSISTANT FOR ECONOMIC POLICY THE AUTHORS OF THE REPORT SAY NOW IS AN IDEAL TIME FOR THE ADMINISTRATION TO EXPAND PROGRAMS THAT ASSIST YOUNG HOUSEHOLDS IN PURCHASING A NEW HOME 9306090014 930609 WHO'S NEWS ROCKWELL REALIGNS TOP POSTS BLACK GETS ADDED DUTIES BY SARAH LUBMAN STAFF REPORTER OF THE WALL STREET JOURNAL SEAL BEACH CALIF ROCKWELL INTERNATIONAL CORP ANNOUNCED A MANAGEMENT RESHUFFLING THAT APPEARS TO MOVE EXECUTIVE VICE PRESIDENT KENT M BLACK INTO LINE AS EVENTUAL SUCCESSOR TO DONALD R BEALL AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER ROCKWELL SAID THE 53YEAROLD MR BLACK WHO NOW BECOMES THE COMPANY'S SOLE CHIEF OPERATING OFFICER WAS GIVEN ADDED RESPONSIBILITIES OVER THE COMPANY'S SPACE AIRCRAFT AND PROPULSION AND POWER BUSINESSES HE RETAINS OVERSIGHT OVER AUTOMOTIVE TELECOMMUNICATIONS DEFENSE ELECTRONICS AND COMMERCIAL AVIONICS OPERATIONS MR BLACK'S NEW DUTIES WERE PREVIOUSLY PERFORMED BY SAM F IACOBELLIS 63 WHO HAD SHARED THE TITLE OF CHIEF OPERATING OFFICER WITH MR BLACK MR IACOBELLIS WHO REMAINS AN EXECUTIVE VICE PRESIDENT WAS NAMED DEPUTY CHAIRMAN FOR MAJOR PROGRAMS INCLUDING THE SPACE SHUTTLE AND SPACE STATION ASKED WHETHER MR IACOBELLIS WOULD REPORT TO MR BLACK IN THE SPACE AREA A SPOKESMAN SAID HE WOULD WORK WITH MR BLACK MR IACOBELLIS WILL ALSO MANAGE ROCKWELL'S WASHINGTON DC OFFICE WHICH HANDLES INTERNATIONAL BUSINESS AND GOVERNMENT RELATIONS AND WHICH PREVIOUSLY REPORTED DIRECTLY TO MR BEALL 54 THE SPOKESMAN SAID MR IACOBELLIS WOULD SERVE AS A HIGHLEVEL REPRESENTATIVE TO GOVERNMENT CUSTOMERS WITH MR BLACK HAVING OPERATIONAL RESPONSIBILITY FOR THE BUSINESS UNITS ROCKWELL SHARES CLOSED AT 3250 DOWN 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ROCKWELL WITH INTERESTS IN THE ELECTRONICS INDUSTRIAL AUTOMATION AEROSPACE AUTOMOTIVE AND GRAPHICS BUSINESSES ALSO NAMED TWO NEW SENIOR VICE PRESIDENTS DON H DAVIS 53 SENIOR VICE PRESIDENT AND PRESIDENTAUTOMATION WILL CONTINUE AS PRESIDENT OF ROCKWELL'S ALLENBRADLEY INDUSTRIAL AUTOMATION DIVISION THE OTHER NEW SENIOR VICE PRESIDENT JOHN A MCLUCKEY 53 WILL CONTINUE AS PRESIDENT OF ROCKWELL'S DEFENSE ELECTRONICS DIVISION IN ADDITION ROCKWELL SAID IT FORMED A CORPORATE STRATEGY COMMITTEE TO ADVISE MR BEALL CONSISTING OF MESSRS BLACK IACOBELLIS DAVIS AND MCLUCKEY W MICHAEL BARNES CHIEF FINANCIAL OFFICER AND CHARLES H HARFF GENERAL COUNSEL THE SUM EFFECT OF THE CHANGES REDUCING MR IACOBELLIS'S DUTIES WHILE AUGMENTING THOSE OF MESSRS BLACK DAVIS AND MCLUCKEY WIDENS THE INNER CIRCLE OF SENIOR MANAGEMENT ABLE TO SOMEDAY COMPETE FOR MR BEALL'S JOB THE MESSAGE IS PRETTY CLEAR THAT SOME OTHER PEOPLE ARE IN THE RUNNING SAID JACK MODZELEWSKI AN ANALYST AT PAINEWEBBER BLACK IS THE INTERNAL HEIR APPARENT BUT THIS ESTABLISHES DAVIS AND MCLUCKEY AS TWO PLAYERS 9306090013 930609 FRUIT OF THE LOOM LONGTERM DEBT UPGRADED BY MOODY'S NEW YORK MOODY'S INVESTORS SERVICE INC RAISED ITS RATING ON FRUIT OF THE LOOM INC'S ABOUT 416 MILLION IN LONGTERM DEBT CITING THE STRENGTHENING OF THE APPAREL COMPANY'S BOARD ITS CONTINUED STRONG PERFORMANCE AND THE COMPANY'S COMMITMENT TO IMPROVING ITS FINANCIAL POSTURE THE RATING CONCERN RAISED FRUIT OF THE LOOM INC'S 7 DEBENTURES DUE 2011 ORIGINALLY ISSUED BY NORTHWEST INDUSTRIES INC TO BA1 FROM BA3 IT ALSO UPGRADED THE COMPANY'S 7875 SENIOR NOTES DUE 1999 TO BA2 FROM B1 AND RAISED THE 12375 SINKING FUND SUBORDINATED DEBENTURES ORIGINALLY ISSUED BY NORTHWEST INDUSTRIES AND DUE 2003 TO BA3 FROM B1 MOODY'S SAID THE KEY FACTORS BEHIND THE UPGRADE WAS FRUIT OF THE LOOM'S COMMITMENT TO LOWER LEVERAGE AND THE ADDITION OF NONMANAGEMENT DIRECTORS TO THE COMPANY BOARD THE ADDITIONAL OUTSIDE DIRECTORS WILL HELP BROADEN THE BOARD'S PERSPECTIVE AND EXPERIENCE AND WILL HELP POSITIVELY POSITION THE COMPANY FOR FUTURE GROWTH IN ADDITION IT SAID FRUIT OF THE LOOM'S DIVERSIFICATION MOVES IN RECENT YEARS ITS STRATEGY OF BEING A VERTICALLY INTEGRATED LOWCOST PRODUCER ITS LICENSING EFFORTS AND ITS INTERNATIONAL GROWTH OFFER ADVANTAGES THAT SHOULD HELP MITIGATE THE RISK OF A DOWNTURN IN A PARTICULAR MARKET SEGMENT OR DISTRIBUTION CHANNEL 9306090012 930609 FOUNDERS PLEAD GUILTY TO FRAUD IN COLLAPSE OF COLONIAL REALTY CO NEW HAVEN CONN THE TWO FOUNDERS OF COLONIAL REALTY CO PLEADED GUILTY TO FRAUD IN CONNECTION WITH THE COLLAPSE OF THEIR COMPANY WHICH FIRST ENTRANCED AND THEN DISMAYED 1980S INVESTORS WHO SAW THEIR LIMITED PARTNERSHIPS WIPED OUT ONE COFOUNDER JONATHAN GOOGEL PLEADED GUILTY IN FEDERAL COURT IN BRIDGEPORT CONN TO BANK FRAUD WIRE FRAUD AND TRYING TO DECEIVE THE INTERNAL REVENUE SERVICE THE COUNTS CARRY A MAXIMUM PENALTY OF 18 YEARS IN PRISON THE OTHER FOUNDER BENJAMIN J SISTI PLEADED GUILTY IN FEDERAL COURT IN NEW HAVEN TO BANKRUPTCY FRAUD AND WIRE FRAUD COUNTS CARRYING A MAXIMUM PENALTY OF 20 YEARS IN PRISON IN ADDITION MR SISTI'S SON KEVIN A ONETIME COLONIAL SALESMAN PLEADED GUILTY TO CONSPIRACY AND FACES A MAXIMUM OF FIVE YEARS IN PRISON COLONIAL'S THIRD PRINCIPAL FRANK M SHUCH CHIEF FINANCIAL OFFICER COMMITTED SUICIDE IN 1992 A FEW MONTHS AFTER BEING INDICTED ON 40 COUNTS OF EMBEZZLEMENT AND FRAUD RELATED TO COLONIAL'S OPERATIONS LAST MONTH ACCOUNTING FIRM ARTHUR ANDERSEN & CO AGREED TO PAY CONNECTICUT 35 MILLION TO SETTLE CHARGES THAT IT HAD MISLED INVESTORS IN COLONIAL PARTNERSHIPS COLONIAL ENTERED BANKRUPTCYLAW REORGANIZATION IN SEPTEMBER 1990 AFTER A FLAMBOYANT HISTORY THAT STARTED IN 1967 WITH THE TWO PARTNERS WORKING OUT OF A PHONE BOOTH AT THEIR PEAK IN 1988 THE TWO MEN VALUED THEIR COMBINED FORTUNE AT 75 MILLION IN TOTAL COLONIAL HAD INVESTOR SALES OF ABOUT 370 MILLION IN 85 PARTNERSHIPS ITS INVESTORS AND INVESTMENTS WERE CONCENTRATED IN THE HARTFORD AREA 9306090011 930609 INSIDER TRACK HEAVY INSIDER SALES ARE MADE AT COMPAQ BY WARREN GETLER AND KYLE POPE STAFF REPORTERS OF THE WALL STREET JOURNAL THERE'S BEEN HEAVY INSIDER SELLING AT COMPAQ COMPUTER CORP THIS SPRING SEVEN EXECUTIVES OF THE HOUSTON COMPUTER MAKER INCLUDING CHAIRMAN BENJAMIN M ROSEN HAVE SOLD NEARLY 26 MILLION OF SHARES SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW MR ROSEN A VENTURE CAPITALIST WHO HELPED LAUNCH COMPAQ MORE THAN A DECADE AGO SOLD ABOUT ONESIXTH OF HIS DIRECT HOLDINGS IN THE COMPANY DISPOSING OF 100000 SHARES AT JUST OVER 54 A SHARE ON MAY 18 THE FILINGS SHOW THE 54 MILLION TRANSACTION WAS HIS FIRST OPENMARKET SALE OF COMPAQ STOCK ACCORDING TO SEC DATA SEC FILINGS ALSO SHOW SIX OTHER INSIDERS SOLD A COMBINED 20 MILLION OF COMPAQ STOCK LAST MONTH IMMEDIATELY AFTER EXERCISING OPTIONS THE SALES TOTALING 375943 SHARES OCCURRED BETWEEN MAY 4 AND MAY 27 AT AN AVERAGE OF 53 A SHARE FOR MOST OF THESE INSIDERS THE SALES ARE EITHER THEIR FIRST EVER OR THE BIGGEST EVER DISPOSALS SAID BOB GABELE PRESIDENT OF CDA/INVESTNET A FORT LAUDERDALE FLA COMPANY THAT TRACKS AND ANALYZES INSIDER FILING WITH THE SEC THERE'S BEEN CLUSTERS OF SELLING AT COMPAQ BEFORE BUT THE PACE HAS BEEN PICKING UP DARYL WHITE CHIEF FINANCIAL OFFICER AND ONE OF THE INSIDERS WHO SOLD IMMEDIATELY AFTER EXERCISING OPTIONS ALSO SOLD 8450 SHARES IN A TRANSACTION NOT RELATED TO OPTIONS ACCORDING TO SEC FILINGS THE SHARES FETCHED 5950 EACH ON MAY 26 THE FILINGS SHOW THE SALE REDUCED MR WHITE'S DIRECT HOLDINGS OF COMPAQ STOCK TO ZERO ACCORDING TO SEC DATA BUT HE CONTINUES TO HOLD NEARLY 3000 SHARES INDIRECTLY AND HAS OPTIONS THAT ARE CURRENTLY EXERCISABLE TO ACQUIRE 145700 SHARES COMPAQ STOCK CLOSED YESTERDAY AT 58125 A SHARE UP 2125 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING ON MONDAY THE STOCK FELL 375 A SHARE MR ROSEN SAID HIS SALES WERE DESIGNED TO DIVERSIFY HIS HOLDINGS AND TO RAISE CAPITAL FOR A NEW PERSONAL INVESTMENT UNRELATED TO THE COMPUTER INDUSTRY I TURNED 60 THIS YEAR AND THIS IS THE FIRST STEP IN THE DIVERSIFICATION OF MY HOLDINGS MR ROSEN SAID MOST OF MY NET WORTH IS IN COMPAQ STOCK THE COMPAQ CHAIRMAN STILL OWNS 515488 COMPANY SHARES DIRECTLY AND HAS OPTIONS THAT ARE CURRENTLY EXERCISABLE TO ACQUIRE 65428 SHARES NONE OF THE OTHER INSIDER SELLERS RETURNED PHONE CALLS TRADING WINDOW THE SALES CAME DURING THE COMPANY'S STRICT TRADING WINDOW FOR INSIDERS USUALLY TWO DAYS AFTER THE REPORTING OF QUARTERLY EARNINGS UNTIL THE END OF THE SECOND MONTH THEREAFTER JOSEPH C NAHIL COMPAQ'S DIRECTOR OF CORPORATE COMMUNICATIONS SAID OPTIONRELATED DISPOSALS DURING THE COMPANY'S TRADING WINDOWS AREN'T UNUSUAL I THINK IT'S IMPORTANT TO UNDERSTAND THAT STOCK IS AN INTEGRAL PART OF THE COMPENSATION SCHEME FOR OFFICERS WHO RECEIVE A THREETIERED PACKAGE INVOLVING SALARY BONUSES AND STOCK OPTIONS HE SAID COMPAQ REPORTED FIRSTQUARTER EARNINGS ON APRIL 21 OF 123 A SHARE THE RESULTS WERE MORE THAN DOUBLE THE PREVIOUS YEAR'S EARNINGS AND IN LINE WITH ESTIMATES FROM ANALYSTS WHO RECENTLY HAVE ADOPTED COMPAQ AS A FAVORITE OF THE PERSONALCOMPUTER MANUFACTURING GROUP THE COMPANY HAS WON WIDE PRAISE AMONG ANALYSTS FOR ITS PERFORMANCE DURING THE RECENT WAVE OF INDUSTRY PRICECUTTING A SPATE OF NEW PRODUCTS ALONG WITH A REVAMPING OF THE COMPANY'S DISTRIBUTION STRATEGY HAS ENABLED COMPAQ TO GOBBLE UP MARKET SHARE FROM WEAKER SECONDTIER PC MAKERS SENDING FIRSTQUARTER REVENUE SOARING 106 TO 16 BILLION BUT INVESTORS IN RECENT WEEKS HAVE GROWN WARY ABOUT HOW MUCH ROOM COMPAQ HAS LEFT TO GROW MANY ANALYSTS FEAR THAT A DROP IN PERSONALCOMPUTER DEMAND COULD TANK THE COMPANY'S GROSS MARGINS WHICH ALREADY HAVE FALLEN NEARLY A THIRD SINCE THE FIRST QUARTER OF 1992 INDEED THOSE JITTERS WERE EVIDENT MONDAY WHEN COMPAQ'S STOCK FELL ABOUT 6 TO 56 A SHARE FOLLOWING BEARISH ANALYST COMMENTS ABOUT COMPAQ COMPETITOR APPLE COMPUTER INC THERE'S A PERCEPTION THAT THE CURRENT LEVEL OF DEMAND IS UNSUSTAINABLE SAID WILLIAM C CONROY A PERSONALCOMPUTER ANALYST AT WILLIAMS MACKAY JORDAN & CO IN HOUSTON PEOPLE THINK THAT THERE'S SORT OF THIS BRICK WALL THEY'RE GOING TO RUN INTO AND THAT THE WALL IS GOING TO FALL ON THE COMPANY THOUGH MR CONROY SAYS HE REMAINS BULLISH ABOUT COMPAQ'S PROSPECTS HE BELIEVES THE COMPANY'S STOCK WILL PLATEAU AT ABOUT 60 A SHARE YESTERDAY MR CONROY CHANGED HIS RATING ON COMPAQ'S SHARES TO HOLD FROM BUY MR ROSEN DISMISSED CONCERNS ABOUT COMPETITION FROM PRICECUTTING RIVALS WE HAVE THE CAPACITY TO MANUFACTURE VERY LARGE QUANTITIES AT LOW COSTS HE SAID WE THINK WE'VE BECOME ONE OF THE LOWESTCOST PRODUCERS IN THE INDUSTRY COMPAQ NOTES THAT IN THE 1993 FIRST QUARTER OPERATING EXPENSES AS A PERCENTAGE OF REVENUE WERE A RECORD LOW 134 BELOW EVEN THE COMPANY'S SMALLER AUSTIN TEXAS COMPETITOR DELL COMPUTER CORP NOW THAT OUR VOLUME HAS TRIPLED IT ALLOWS US TO SPREAD OVERHEAD OVER THREE TIMES AS MANY COMPUTERS AS THE COMPANY PRODUCED A YEAR AGO MR ROSEN SAID THE CHAIRMAN TOOK PAINS TO EMPHASIZE THAT HIS STOCK SALE WASN'T A REFLECTION ON COMPAQ'S PERFORMANCE THIS SALE HAS ABSOLUTELY NOTHING TO DO WITH OUR PROSPECTS HE SAID MR ROSEN SAID HE WAS GOING TO INVEST SOME OF THE PROCEEDS FROM THE STOCK SALE IN A JOINT VENTURE WITH HIS BROTHER HAROLD ROSEN AN ELECTRICAL ENGINEER AND INVENTOR MR ROSEN'S PREVIOUS OPENMARKET TRADE IN COMPAQ STOCK WAS A PURCHASE OF 50000 SHARES ON SEPT 7 1990 AT 4475 ACCORDING TO SEC FILINGS THE OTHER FIVE COMPAQ INSIDERS WHO SOLD STOCK LAST MONTH WERE WILSON D FARGO GENERAL COUNSEL JERRY G WELCH HUMAN RESOURCES DIRECTOR DAVID J SCHEMPF CONTROLLER GARY STIMAC SENIOR VICE PRESIDENT FOR SYSTEMS AND STEVEN H HAMBLIN VICE PRESIDENT FOR LOGISTICS 9306090010 930609 BUSINESS BRIEFS TOSCO CORP ENTERED INTO A LETTER OF INTENT FOR A LONGTERM LEASE OF NORTHVILLE INDUSTRIES CORP'S LONG ISLAND WHOLESALE PETROLEUM DISTRIBUTION TERMINAL AND SYSTEM TENNECO GAS A UNIT OF TENNECO INC SIGNED A LETTER OF INTENT WITH LEVIATHAN GAS PIPELINE PARTNERS LP TO CREATE A JOINT VENTURE TO BUILD NATURALGAS GATHERING FACILITIES OFFSHORE LOUISIANA ALBANK FINANCIAL CORP COMPLETED THE PURCHASE OF 5 OF ITS SHARES AND PLANS ANOTHER 5 PURCHASE SUBJECT TO REGULATORY APPROVAL RPM INC COMPLETED THE ACQUISITION OF CLOSELY HELD DYNATRON/BONDO CORP TERMS WEREN'T DISCLOSED 9306090009 930609 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB IF YOU'RE WONDERING ABOUT THE REAL NIGHTMARE SCENARIO FOR DEMOCRATS THINK NOT OF THE COMING CONGRESSIONAL VOTES ON PRESIDENT CLINTON'S ECONOMIC PACKAGE OR THE FATE OF HIS HEALTHCARE OVERHAUL INSTEAD FASTFORWARD TO THE 1994 ELECTION AN UNUSUALLY LARGE NUMBER OF DEMOCRATIC SENATORS INCLUDING SOME WHO AREN'T EXACTLY ON THE PARTY ALLSTAR TEAM WILL BE UP FOR REELECTION IF MR CLINTON HASN'T CONVINCED THE COUNTRY BY NEXT YEAR THAT HE HAS A WINNING ECONOMIC PROGRAM AND THAT DEMOCRATS HAVE BROKEN GRIDLOCK DISASTER IS A PROBABLE OUTCOME CONTROL OF THE SENATE AS WELL AS THE POWER TO SHAPE THE REMAINDER OF THE CLINTON TERM WOULD SLIP AWAY YET REPUBLICANS SHOULDN'T FEEL TOO SMUG EVEN IF THE DEMOCRATS' NIGHTMARE SCENARIO UNFOLDS AND IT IS STILL A LONGSHOT BY HISTORICAL STANDARDS THE REAL BENEFICIARIES COULD WELL BE ROSS PEROT AND HIS IRASCIBLE FOLLOWERS NOT THE GOP IF THE NATION REMAINS AS CRANKY ABOUT THE ESTABLISHMENT AS IT SEEMS TODAY THE POWER TO SWING ELECTIONS WILL FALL TO THE PEROTISTAS WHO STAND ABOVE BOTH CAMPS AND ARE GETTING INCREASINGLY ORGANIZED AND EVEN IF ALL THE BREAKS HAPPEN TO FALL THE REPUBLICANS' WAY THAT SILVER CLOUD ALSO HAS A DARK LINING IF REPUBLICANS WON CONTROL OF THE SENATE WHICH TODAY HAS A 56TO44 DEMOCRATIC MAJORITY THEY WOULD INSTANTLY START SHARING RESPONSIBILITY FOR ALL THAT HAPPENS IN THE SECOND HALF OF THE CLINTON TERM AND INSTANTLY LOSE THE LUXURY OF SIMPLY TAKING POTSHOTS FROM THE OUTSIDE IF REPUBLICANS ARE VERY LOGICAL WHAT THEY SHOULD WANT IN 1994 SENATE ELECTIONS IS TO WIND UP WITH 48 OR 49 SEATS SAYS MAVERICK GOP THEORIST KEVIN PHILLIPS THESE THOUGHTS ARISE NOW BECAUSE OF THE SHELLACKING DELIVERED TO THE DEMOCRATS OVER THE WEEKEND IN TEXAS WHERE REPUBLICAN KAY BAILEY HUTCHISON OVERWHELMED INTERIM SEN BOB KRUEGER IN A RACE TO FILL THE SENATE SEAT VACATED BY TREASURY SECRETARY LLOYD BENTSEN THE FULL MAGNITUDE OF THE DEMOCRATS' LOSS IS ONLY NOW BECOMING CLEAR IT ISN'T JUST THAT MS HUTCHISON WON 67 OF THE VOTE SHE RAN THE TABLE SHE WON ALL SIX OF THE BIGGEST TEXAS COUNTIES SHE WON THE RURAL COUNTIES SHE WON THE URBAN COUNTIES SHE WON IN EACH OF TEXAS' EIGHT GEOGRAPHIC REGIONS TAKING 80 OF THE VOTE IN THE PANHANDLE IT WAS A WIPEOUT OF WHICH BABE RUTH'S YANKEES WOULD HAVE BEEN PROUD FOR DEMOCRATS WHO OCCUPY 21 OF THE 34 SENATE SEATS UP FOR ELECTION NEXT YEAR THERE COULDN'T HAVE BEEN A LESS AUSPICIOUS PRELUDE TO 1994 THE LIST OF DEMOCRATIC INCUMBENTS INCLUDES DONALD RIEGLE OF MICHIGAN AND DENNIS DECONCINI OF ARIZONA TWO SENATORS TINGED BY THEIR TIES TO CHARLES KEATING THE SAVINGS AND LOAN OPERATOR CONVICTED OF SECURITIES FRAUD ALSO UP IS CHARLES ROBB OF VIRGINIA WHO RECENTLY HAD TO FIGHT OFF A GRAND JURY INDICTMENT GROWING OUT OF AN INCREDIBLY BITTER FEUD WITHIN HIS OWN STATE'S DEMOCRATIC PARTY AS THEY EYE THIS SITUATION DEMOCRATS CAN DRAW SOME SOLACE FROM HISTORY SINCE WORLD WAR II THE PARTY OF A PRESIDENT IN THE MIDST OF HIS FIRST TERM TENDS TO SUFFER ONLY SMALL LOSSES IN SENATE RACES IN 1978 HALFWAY THROUGH JIMMY CARTER'S TERM OPPOSITION REPUBLICANS PICKED UP THREE SEATS IN 1954 HALFWAY THROUGH DWIGHT EISENHOWER'S FIRST TERM OPPOSITION DEMOCRATS PICKED UP TWO SENATE SEATS IN 1962 WITH JOHN KENNEDY IN THE WHITE HOUSE OPPOSITION REPUBLICANS ACTUALLY LOST THREE SENATE SEATS DISASTERS FOR THE RULING PARTY TEND TO COME IN THE MIDDLE OF A PRESIDENT'S SECOND TERM WHEN THE COUNTRY YEARNS FOR CHANGE IN OTHER WORDS IT WILL TAKE AN UNUSUALLY BAD PERFORMANCE BY DEMOCRATS TO LOSE THE SEVEN SEATS BY WHICH THEY CONTROL THE SENATE IF MR CLINTON IS IN FACT THE COMEBACK KID HE DOESN'T NEED A MIRACLE COMEBACK TO FORESTALL THE NIGHTMARE SCENARIO ESTABLISHING A SOLID LEVEL OF COMPETENCE SHOULD DO BUT TODAY'S TROUBLES ARE GENERATING PROBLEMS THAT INCREASE THE ODDS OF A NIGHTMARE SCENARIO A SHAKY WHITE HOUSE PERFORMANCE IMPROVES THE REPUBLICANS' CHANCES OF PERSUADING TOPNOTCH CANDIDATES TO RUN NEXT YEAR IN NEW JERSEY FOR INSTANCE REPUBLICAN STRATEGISTS DREAM OF GETTING POPULAR FORMER GOV TOM KEAN TO RUN AGAINST SEN FRANK LAUTENBERG AND IN ARIZONA REPUBLICAN OPERATIVES ARE CONFIDENT THAT POPULAR REP JON KYL WILL OPPOSE SEN DECONCINI WORSE YET TREMULOUS SENATE DEMOCRATS COULD START CASTING VOTES TO OPPOSE MR CLINTON SIMPLY TO DISTANCE THEMSELVES FROM THE WHITE HOUSE BUT THAT WOULD ONLY CAUSE THE DEMOCRATIC SHIP TO LIST FURTHER ULTIMATELY BOTH NOW AND IN 1994 DEMOCRATS EITHER HANG WITH MR CLINTON OR THEY HANG SEPARATELY 9306090008 930609 BUSINESS BRIEF UNISYS CORP COMPANY WINS CONTRACT FOR PHONE SERVICES IN CHINA UNISYS CORP SIGNED A THREEYEAR 85 MILLION AGREEMENT TO PROVIDE SYSTEMS INTEGRATION SERVICES AND VOICE MESSAGING TECHNOLOGY IN SEVERAL CHINESE CITIES UNISYS WILL PROVIDE THE CITIES OF DONGGUAN HUIZHOU ZHONGSHAN AND ZHUHAI OF GUANGDONG PROVINCE WITH TELEPHONE SERVICES SUCH AS VOICE MAIL AND CALLING CARDS BY FEBRUARY 1994 OF THE 65 MILLION PEOPLE WHO LIVE IN GUANGDONG ONLY ONE IN 167 HAS A TELEPHONE THE VOICE MAIL SERVICE WHICH INITIALLY WILL BE OFFERED TO 70000 GUANGDONG CONSUMERS ALLOWS PEOPLE WITHOUT TELEPHONES TO RECEIVE MESSAGES FROM A PRIVATE TELEPHONE MAILBOX BLUE BELL PABASED UNISYS MAKES BUSINESS INFORMATION SYSTEMS IT WAS AWARDED A SIMILAR CONTRACT FOR NEIGHBORING SHENZHEN PROVINCE LAST YEAR 9306090007 930609 PEABODY COAL CHARGES UMW WITH VIOLATING CONTRACT EXTENSION SPRINGFIELD ILL PEABODY COAL CO THE NATION'S NO 1 COAL PRODUCER FILED A LAWSUIT AGAINST THE UNITED MINE WORKERS FOR STRIKES AND WORK SLOWDOWNS THAT THE COMPANY SAYS VIOLATED A 60DAY LABOR CONTRACT EXTENSION HANSON PLC'S PEABODY IS SEEKING AN UNSPECIFIED AMOUNT OF DAMAGES IN A LAWSUIT FILED IN US DISTRICT COURT HERE ON FEB 1 THE UMW'S LABOR CONTRACT EXPIRED WITH THE BITUMINOUS COAL OPERATORS' ASSOCIATION OF WHICH PEABODY IS A MEMBER THE UNION AND THE BCOA AGREED TO A 60DAY CONTRACT EXTENSION WHICH EXPIRED MAY 3 NO CONTRACT HAS BEEN NEGOTIATED SINCE THERE WAS A SPECIFIC PROVISION IN THE CONTRACT EXTENSION THAT PROHIBITED STRIKES OR WORK SLOWDOWNS SAYS PEABODY SPOKESMAN JOE KLINGL PEABODY IS CHARGING THAT THE UNION VIOLATED THIS CLAUSE BY IMPOSING STRIKES AND/OR WORK SLOWDOWNS AT FOUR ILLINOIS MINES OR PLANTS UMW SPOKESMAN JIM GROSSFELD SAID HE WASN'T CERTAIN THE NOTED VIOLATIONS OCCURRED AND SAID PEABODY WAS ENGAGED IN A PUBLIC RELATIONS STUNT THE UNION HAS ENGAGED IN FURTHER SELECTIVE STRIKES AT SEVEN COMPANIES INCLUDING PEABODY IN THE PAST WEEK PEABODY HAS SUSPENDED UNION EMPLOYEES FOR INSUBORDINATION AT ONE OF ITS MINES 9306090006 930609 INTERNATIONAL FORMER YELTSIN AIDE BELIEVES RUSSIA MAY BE HEADING TOWARD DISINTEGRATION BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW DELEGATES IN THE KREMLIN ARE DEBATING THE SHAPE OF RUSSIA'S FIRST POSTSOVIET CONSTITUTION BUT ACROSS TOWN YURI SKOKOV FORMER NATIONAL SECURITY ADVISER TO PRESIDENT BORIS YELTSIN WONDERS HOW RUSSIA CAN POSSIBLY PRODUCE A DOCUMENT THAT WILL SATISFY EACH OF THE COUNTRY'S 88 REPUBLICS AND REGIONS UNTIL LAST MONTH MR SKOKOV WAS ONE OF RUSSIA'S MOST POWERFUL MEN AS HEAD OF RUSSIA'S SECURITY COUNCIL HE REPORTED DIRECTLY TO MR YELTSIN ON KEY MILITARY AND INTELLIGENCE MATTERS BUT WHEN MR YELTSIN WON A VOTE OF CONFIDENCE APRIL 25 FROM THE RUSSIAN PEOPLE THE PRESIDENT DUMPED THE 55YEAROLD FORMER PHYSICIST FROM HIS INNER CIRCLE WEEKS EARLIER MR SKOKOV HAD CRITICIZED HIS BOSS'S POLITICAL TACTICS AND THE PRESIDENT WAS CLEANING HOUSE TODAY MR SKOKOV HEADS A NEW MOSCOW RESEARCH CENTER ON INTERREGIONAL ISSUES RUN FROM HIS SPACIOUS OFFICE IN THE WHITE HOUSE HOME OF RUSSIA'S PARLIAMENT HE FINDS HIMSELF WITH PLENTY OF TIME TO PONDER THE WEIGHTY ISSUES CONFRONTING RUSSIA WHAT MOST WORRIES HIM IS THE DANGER OF RUSSIAN DISINTEGRATION A THREAT THAT HE CONSIDERS VERY REAL HE FEARS THAT MR YELTSIN'S EFFORT TO PUSH THROUGH A NEW CONSTITUTION JUST ADDS TO THE DANGER TO ILLUSTRATE THE RISK MR SKOKOV WALKS UP TO A HUGE WALL MAP OF RUSSIA HE POINTS TO A VAST YELLOWSHADED REGION THE REPUBLIC OF YAKUTIA WHICH NOW REFERS TO ITSELF AS SAKHA WITH A HUGE CACHE OF DIAMONDS AND A STRONG DESIRE TO CONTROL ITS OWN WEALTH YAKUTIA COULD TRY TO CARRY OUT ITS THREATS TO BECOME INDEPENDENT MR SKOKOV SAYS HE CAN IMAGINE A LOOSE FAR EASTERN BLOC OF NATIONS THAT COULD INCLUDE YAKUTIA OTHER RUSSIAN FAR EAST REPUBLICS MONGOLIA CHINA AND JAPAN YAKUTIA'S LEADERS HE NOTES HAVE ALREADY SAID THEY WILL IGNORE WHATEVER EMERGES FROM THE CONSTITUTIONAL CONFERENCE WHAT'S MORE 15 OTHER OF RUSSIA'S 21 REPUBLICS SIMILARLY HAVE BARRED DELEGATES TO THE CONFERENCE FROM SIGNING ANY DRAFT THERE IS A REAL POTENTIAL FOR A RUSSIAN BREAKUP MR SKOKOV SAYS TO A GREAT EXTENT EVERYTHING DEPENDS ON HOW WISE THE STATE LEADERSHIP PROVES ITSELF TO BE TO BE SURE THERE ARE STRONG FACTORS WORKING AGAINST INDEPENDENCE AND MR SKOKOV DOESN'T EXPECT SUCH DRAMATIC DEVELOPMENTS ANY TIME SOON RUSSIA'S REPUBLICS AND REGIONS ARE HEAVILY INTERDEPENDENT FOR MATERIALS AND SUPPLIES AND MOST REPUBLICS WITHIN RUSSIA LACK A TRADITION OF INDEPENDENCE BUT MR SKOKOV NOTES EXPERTS CITED SOME OF THE SAME CONSTRAINTS WHEN THEY PREDICTED THE SOVIET UNION WOULD NEVER BREAK UP THE POSSIBILITY OF DISINTEGRATION IN RUSSIA IS VERY IMPORTANT NOT JUST FOR RUSSIA BUT FOR THE WHOLE WORLD MR SKOKOV SAYS NOTING THAT IT COULD BE ESPECIALLY DIFFICULT TO CONTROL NUCLEAR WEAPONS SPREAD ACROSS THE VAST NATION THE WORLD HAS NO IDEA HOW TO SOLVE THE PROBLEM IN YUGOSLAVIA HE SAYS IMAGINE THAT ON THE SCALE OF RUSSIA MR SKOKOV BLAMES MR YELTSIN FOR LETTING EVENTS REACH THIS STAGE BUT NOT LONG AGO HE WAS CLOSE TO THE RUSSIAN PRESIDENT IN 1990 MR SKOKOV WAS IN CHARGE OF ECONOMIC POLICY FOR MR YELTSIN'S PRESIDENTIAL CAMPAIGN AND DURING THE FAILED COUP OF AUGUST 1991 HE STAYED WITH THE PRESIDENT IN THE WHITE HOUSE MANNING THE TELEPHONE TO STAY IN TOUCH WITH TOP MILITARY AND KGB OFFICERS INDEED MR SKOKOV ONCE WAS CONSIDERED A LIBERAL IN THE RUSSIAN POLITICAL SPECTRUM BUT THE IDEOLOGICAL GROUND HAS SHIFTED RAPIDLY AND MR SKOKOV NOW FINDS HIMSELF BRANDED CONSERVATIVE AND LUMPED ALONGSIDE THOSE HOSTILE TO MR YELTSIN'S REFORMS MR SKOKOV SPLIT WITH MR YELTSIN IN MARCH WHEN HE OPPOSED THE PRESIDENT'S ATTEMPT TO TEMPORARILY USURP EXTRAORDINARY POWERS TO BREAK THROUGH THE POLITICAL GRIDLOCK IN MOSCOW MR YELTSIN MR SKOKOV SAYS IS RESPONSIBLE FOR THE DIVISION IN SOCIETY THAT AT THE HIGHEST LEVEL PITS THE PRESIDENT AGAINST MAJOR RIVALS RUSLAN KHASBULATOV CHAIRMAN OF PARLIAMENT AND ALEXANDER RUTSKOI RUSSIA'S VICE PRESIDENT YELTSIN MADE A GRAVE POLITICAL MISTAKE BY TAKING SIDES IN THE POLITICAL STRUGGLE MR SKOKOV SAYS INSTEAD HE ARGUES MR YELTSIN SHOULD STAY ABOVE THE FRAY ADOPTING THE ROLE OF FATHER OF THE NATION 9306090005 930609 COMMODITIES SUGAR FUTURES PRICES SURGE AS TRADERS WORRY THAT DELIVERIES FROM BRAZIL MAY BE RESTRICTED BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL SUGAR FUTURES PRICES SURGED AMID CONCERNS ABOUT POSSIBLE DELIVERY OF LOWGRADE BRAZILIAN SUGAR AGAINST FUTURES CONTRACTS AND LINGERING WORRIES ABOUT CUBA'S INABILITY TO MEET ITS CONTRACTUAL OBLIGATIONS FOR SUGAR EXPORTS AT NEW YORK'S COFFEE SUGAR & COCOA EXCHANGE THE PRICE OF SUGAR FOR JULY DELIVERY WAS UP 018 CENT TO 1113 CENTS A POUND DOMINATING TRADERS' ATTENTION YESTERDAY WAS CONTROVERSY OVER WHETHER SOCALLED CRYSTALLINE SUGAR FROM BRAZIL CAN BE DELIVERED AGAINST FUTURES CONTRACTS AT THE COFFEE SUGAR & COCOA EXCHANGE FUTURES CONTRACTS ARE COMMITMENTS TO BUY SUGAR FOR A PREDETERMINED PRICE ON A GIVEN DATE IN THE FUTURE RECENTLY THE EXCHANGE RELEASED A STATEMENT WIDELY INTERPRETED TO MEAN THAT CRYSTALLINE SUGAR WHICH IS A HYBRID FALLING BETWEEN FULLY PROCESSED SUGAR AND RAW SUGAR CAN BE DELIVERED AGAINST THESE CONTRACTS THE STATEMENT ANGERED SOME SUGAR PROCESSING AND TRADING FIRMS WHICH USE THE COFFEE SUGAR & COCOA EXCHANGE'S CONTRACTS TO LOCK IN SUPPLIES OR SALES OF PROCESSED SUGAR YESTERDAY TATE & LYLE PLC A BRITISH SUGARTRADING CONCERN DELIVERED A STERNLY WORDED LETTER TO THE EXCHANGE THREATENING LEGAL ACTION IF THE EXCHANGE ALLOWS THE CRYSTALLINE SUGAR TO BE DELIVERED AGAINST ITS CONTRACTS SAID BERNARD SAVAIKO SUGAR ANALYST FOR PAINEWEBBER INC THE EXCHANGE'S SUGAR COMMITTEE CONVENED IN A SPECIAL MEETING YESTERDAY TO DISCUSS THE MATTER MR SAVAIKO SAID LATE YESTERDAY A COFFEE SUGAR & COCOA SPOKESWOMAN SAID THE EXCHANGE WOULD NOT COMMENT ON THE MEETING THE DIFFERENCE IN GRADES OF SUGAR CAN BE CRUCIAL MR SAVAIKO SAID IT'S LIKE BUYING PORK BELLIES AND GETTING HAMS INSTEAD RAW SUGARS HAVE STORAGE PROBLEMS THEY CAN BE VOLATILE RAISING THE POSSIBILITY OF EXPLODING LIKE GRAINS IF THEY'RE NOT PROPERLY STORED ON MAY 17 SUGAR FOR JULY DELIVERY REACHED A NEW CONTRACT HIGHONLY TO PLUNGE THREE CENTS A POUND IN SUBSEQUENT WEEKS IN PART BECAUSE OF CONCERNS ABOUT THE BRAZILIAN CRYSTALLINE SUGAR SOME ANALYSTS THINK PRICES COULD ENCOUNTER SUSTAINED UPWARD PRESSURE IF THE EXCHANGE REFUSES TO ALLOW THE CRYSTALLINE SUGAR TO BE DELIVERED OTHERS HOWEVER THINK THE CURRENTLY LOW PRICE OF SUGAR DIMINISHES THE IMPORTANCE OF THE BRAZILIAN SUGAR CONTROVERSY IT MIGHT BE A MOOT POINT SAID JUDITH GANES SUGAR ANALYST FOR MERRILL LYNCH THE SUGAR FROM BRAZIL MAY NOT BE DELIVERED AT 1113 CENTS A POUND BECAUSE THAT'S NOT A HIGH ENOUGH PRICE IF IT DOES PROVE TO BE DELIVERABLE I THINK LESS THAN THE 200000 TO 300000 TONS THEY WERE EXPECTING FROM BRAZIL WOULD ACTUALLY BE DELIVERED ALSO APPLYING UPWARD PRESSURE TO THE MARKET YESTERDAY WERE CONTINUING CONCERNS ABOUT THE LIKELIHOOD THAT CUBA THE WORLD'S LARGEST EXPORTER OF RAW SUGAR WON'T MEET ITS DELIVERY OBLIGATIONS ON SUGAR EXPORTS THIS YEAR ON FRIDAY CUBA DECLARED FORCE MAJEURE THE INABILITY TO MEET CONTRACTS WITH RUSSIA AND OTHER COUNTRIES BECAUSE OF FORCES BEYOND ITS CONTROL STORMRELATED DAMAGE TO CUBA'S SUGAR CROP IS LIKELY TO SUBSTANTIALLY DECREASE THE COUNTRY'S PRODUCTION THIS YEAR ANALYSTS SAY IN OTHER COMMODITY MARKETS YESTERDAY GRAINS & SOYBEANS PRICES OF CORN WHEAT AND SOYBEAN FUTURES CONTRACTS SLIPPED AMID A WAVE OF PROFITTAKING AND FORECASTS FOR DRIER WEATHER ACROSS THE MIDWEST THIS WEEKEND A BREAK IN THE RAIN WOULD ALLOW FARMERS TO FINISH PLANTING THEIR CORN ACREAGE IN TRADING AT THE CHICAGO BOARD OF TRADE THE CORN CONTRACT FOR JULY DELIVERY FELL 175 CENTS A BUSHEL TO SETTLE AT 220 A BUSHEL SOME GRAIN TRADERS FIGURE THAT RAIN DELAYS MIGHT HAVE PREVENTED FARMERS FROM SOWING ABOUT TWO MILLION ACRES TO CORN AS A RESULT SOME ANALYSTS ARE LOWERING THEIR INITIAL FORECASTS FOR A HARVEST OF ROUGHLY 85 BILLION BUSHELS OF CORN THIS AUTUMN DANIEL W BASSE DIRECTOR OF RESEARCH AT AGRESOURCE CO CHICAGO SAID HE NOW EXPECTS US CORN FARMERS TO HARVEST CLOSER TO EIGHT BILLION BUSHELS IN ADDITION TO DELAYING THE PLANTING SEASON THE UNUSUALLY RAINY WEATHER ACROSS THE MIDWEST PROBABLY ALSO WILL LOWER POTENTIAL CORN YIELDS PER ACRE MR BASSE SAID ENERGY PETROLEUM FUTURES PRICES SETTLED HIGHER IN ACTIVE TRADING ON THE NEW YORK MERCANTILE EXCHANGE WHERE TRADERS SPENT THE DAY TRYING TO DIVINE KUWAIT'S INTENTIONS CONCERNING ITS OUTPUT EARLY INDICATIONS THAT THE PERSIAN GULF EMIRATE WOULD BE FLEXIBLE ABOUT INCREASING ITS PRODUCTION CEILING SENT PRICES HIGHER BUT WHEN THE DAY'S OPEC SESSION BROKE UP WITH NO AGREEMENT MARKET PARTICIPANTS DECIDED THAT KUWAIT WASN'T BEING FLEXIBLE AFTER ALL INDEED THE KUWAITI DELEGATION ANNOUNCED AFTER THE DAY'S MEETING THAT IT WOULD REJECT A THIRDQUARTER CEILING OF 18 MILLION BARRELS UP FROM ITS CURRENT 16 MILLION OTHER OPEC MEMBERS HAVE TALKED ABOUT SIMPLY CONTINUING WITH THE SECONDQUARTER CEILING THROUGH THE THIRD QUARTER NONETHELESS OIL MARKETS ENDED HIGHER WITH SHARP GAINS TURNING INTO MODEST GAINS JULY CRUDE ROSE 11 CENTS HIGHER TO 1965 A BARREL PRODUCTS FOLLOWED CRUDE WITH JULY HEATING OIL GAINING 013 CENTS TO FINISH AT 5371 CENTS A GALLON AND JULY GASOLINE UP SLIGHTLY003 CENTTO 5615 CENT A GALLON 9306090004 930609 WHAT'S NEWS BUSINESS AND FINANCE THE ADMINISTRATION UNVEILED A BROAD TOUGH AGENDA FOR TRADE TALKS WITH JAPAN BUT DECIDED TO NAME WALTER MONDALE THE AMBASSADOR TO JAPAN AS A WAY OF LESSENING TENSION BETWEEN THE TWO COUNTRIES JAPAN HAD HOPED FOR A HIGHPROFILE APPOINTEE SUCH AS THE FORMER VICE PRESIDENT RATHER THAN A SENIOR BUREAUCRAT FRANCE DROPPED ITS OPPOSITION TO AN OILSEEDS ACCORD BETWEEN THE EC AND THE US ENDING A BITTER TRANSATLANTIC DISPUTE AND BOOSTING THE PROSPECTS FOR A WORLD TRADE AGREEMENT THIS YEAR CLINTON AGREED TO LOOK FOR ALTERNATIVES TO HIS PROPOSED BTUBASED ENERGY TAX TREASURY SECRETARY BENTSEN INDICATED AFTER DEMOCRATS WARNED THE DEFICITREDUCTION PROGRAM WAS IN DANGER OF BEING KILLED IN THE SENATE NORTHWEST AIRLINES FACES A LIKELY REJECTION FROM THE MACHINISTS' UNION OVER A CONCESSIONARY PACT THAT THROWS INTO QUESTION THE AIRLINE'S PLAN TO CUT LABOR COSTS AND DEFER DEBT PAYMENTS SPENDING BY FOREIGN INVESTORS TO ACQUIRE OR ESTABLISH BUSINESSES IN THE US IN 1992 FELL FOR THE FOURTH STRAIGHT YEAR REFLECTING WEAK ECONOMIC CONDITIONS IN THE US AND ABROAD FOREIGN DIRECT INVESTMENT IN THE US FELL 47 LAST YEAR TO 135 BILLION THE LOWEST LEVEL SINCE 1983'S 809 BILLION THE BIGGEST CABLE TV COMPANIES ARE EXPECTED TO SIGN A CONSENT DECREE TODAY TO SETTLE A FEDERAL SUIT ALLEGING MONOPOLISTIC PRACTICES THAT MADE THE PUBLIC CAPTIVE THROUGH PROGRAMMING CONTROLS AND DISCRIMINATORY PRICING USAIR SLASHED ITS FARE BETWEEN LOS ANGELES AND SAN FRANCISCO 36 AND UNITED PROMPTLY MATCHED THE ACTION SIGNALING ANOTHER SHUTTLE FARE WAR MICROSOFT PLANS TO INTRODUCE TODAY SOFTWARE THAT PROVIDES A COMMON LANGUAGE FOR OFFICE EQUIPMENT DOZENS OF OFFICEEQUIPMENT COMPANIES HAVE PLEDGED TO USE THE SOFTWARE WHICH ALLOWS PHOTOCOPIERS FAXES PHONES AND OTHER MACHINES TO TALK TO EACH OTHER VISA USA AND SPRINT ARE PLANNING TO OFFER A 25 DISCOUNT TO THE RATES AT&T CHARGES ON LONGDISTANCE PHONE CALLS MADE WITH CALLING CARDS STOCKS AND BONDS DROPPED AFTER THE DOLLAR SLID TO A POSTWAR LOW AGAINST THE YEN THE DOW JONES INDUSTRIALS FELL 2159 TO 351054 THE PRICE OF THE TREASURY'S 30YEAR BENCHMARK ISSUE LOST HALF A POINT ITS YIELD ROSE TO 691 IBM EASILY SOLD 18 BILLION IN NOTES AND BONDS AS INVESTORS APPARENTLY SWEPT ASIDE THEIR CONCERNS ABOUT THE GIANT COMPUTER COMPANY'S FUTURE A PAINEWEBBER UNIT SUDDENLY WITHDREW A SUIT FILED AGAINST TWO EXSENIOR OFFICIALS WHOM THE FIRM HAD ACCUSED OF LURING AWAY CLIENTS AND EMPLOYEES ROCKWELL INTERNATIONAL ANNOUNCED A RESHUFFLING THAT APPEARS TO MOVE KENT BLACK IN LINE TO EVENTUALLY SUCCEED DONALD BEALL AS CHAIRMAN VOLKSWAGEN'S J IGNACIO LOPEZ DE ARRIORTUA CALLED A NEWS CONFERENCE AMID SPECULATION THAT HE WILL UNVEIL AN INNOVATIVE CAR PLANT TO BE BUILT IN HIS NATIVE BASQUE REGION OF SPAIN TOKYO STOCK PRICES FELL SHARPLY TUESDAY PUSHED BY A RESURGENT YEN THE NIKKEI INDEX SKIDDED 26895 POINTS OR 13 TO 2057524 JAPANESE MARKETS ARE CLOSED WEDNESDAY FOR THE IMPERIAL WEDDING HOLIDAY LONDON SHARES ENDED MIXED TO LOWER BONDS LEHMAN BROTHERS TREASURY INDEX 510995 OFF 1917 COMMODITIES OIL 1965 A BARREL UP 11 CENTS DOW JONES FUTURES INDEX 12045 OFF 066 SPOT INDEX 12039 OFF 018 DOLLAR 10640 YEN OFF 080 16245 MARKS UP 00040 9306090003 930609 BUSINESS BRIEF HYUNDAI MOTOR CO PLANT IN QUEBEC IS TO RECEIVE CONVERSION FOR ELANTRA MODEL HYUNDAI MOTOR CO SAID IT WILL SPEND 661 MILLION CANADIAN DOLLARS US516 MILLION TO CONVERT ITS BROMONT QUEBEC ASSEMBLY PLANT TO PRODUCE A NEW VERSION OF THE COMPANY'S ELANTRA MODEL HYUNDAI WILL CLOSE THE FACILITY FROM OCTOBER UNTIL SPRING 1995 TO CONVERT THE ASSEMBLY OPERATIONS IT WILL LAY OFF MOST OF THE PLANT'S 850 WORKERS FOR THAT PERIOD ALL OF THE EMPLOYEES WILL BE RECALLED GRADUALLY STARTING IN MID1994 THE COMPANY SAID HYUNDAI SAID IT EXPECTS TO PRODUCE 40000 OF THE NEW CARS BY THE END OF 1995 AND REACH FULL ANNUAL PRODUCTION OF 100000 CARS BY 1997 THE CARS WILL BE SOLD IN CANADA AND EXPORTED TO THE US AND EUROPE THE BROMONT FACILITY IS THE ONLY HYUNDAI ASSEMBLY OPERATION OUTSIDE OF KOREA IT PRODUCED ABOUT 15000 SONATA SEDANS LAST YEAR 9306090002 930609 BUSINESS BRIEF MAXXAM INC UNIT FILES FOR ISSUE OF NOTES ADJUSTS ITS BUSINESS FOCUS MAXXAM INC SAID ITS WHOLLY OWNED SUBSIDIARY MAXXAM GROUP INC HAS FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR THE SALE OF A COMBINED 200 MILLION OF SENIOR SECURED NOTES DUE 2003 AND SENIOR SECURED DISCOUNT NOTES DUE 2003 IN CONNECTION WITH THE OFFERING MAXXAM GROUP PLANS TO ADJUST ITS OPERATIONS TO FOCUS ON ITS FORESTPRODUCTS BUSINESS MAXXAM GROUP WILL TRANSFER TO ITS PARENT 50 MILLION SHARES OF KAISER ALUMINUM CORP AS WELL AS ALL OTHER ASSETS AND LIABILITIES UNRELATED TO THE FORESTPRODUCTS BUSINESS MAXXAM HOUSTON SAID PROCEEDS FROM THE OFFERING WILL BE USED TO RETIRE MAXXAM GROUP'S 1275 NOTES DUE 1995 AND MAXXAM INC'S 14 SENIOR SUBORDINATED RESET NOTES DUE 2000 COMPANY OFFICIALS COULDN'T BE REACHED FOR COMMENT 9306090001 930609 INTERNATIONAL FRANCE GIVES LIFT TO WORLD TRADE TALKS BY ENDING OPPOSITION TO OILSEEDS PACT BY JULIE WOLF SPECIAL TO THE THE WALL STREET JOURNAL LUXEMBOURG THE DRIVE TO COMPLETE A WORLD TRADE AGREEMENT THIS YEAR RECEIVED A BOOST WHEN FRANCE DROPPED ITS LONGSTANDING OPPOSITION TO AN ACCORD ON OILSEEDS BETWEEN THE EUROPEAN COMMUNITY AND THE US ALLOWING EC FOREIGN MINISTERS TO ADOPT THE DEAL THE DECISION ENDS A BITTER TRANSATLANTIC DISPUTE OVER EC SUBSIDIES TO OILSEED FARMERS IN WHICH WASHINGTON HAD THREATENED TO SLAP EXTRA DUTIES ON 1 BILLION OF EC EXPORTS TO THE US IT ALSO REMOVES AN IRRITANT THAT COULD HAVE UNDERMINED EFFORTS TO WRAP UP THE SIXYEAROLD URUGUAY ROUND OF TALKS UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE TO BE SURE THE GATT TALKS AREN'T OUT OF THE WOODS YET FRANCE'S EUROPEAN AFFAIRS MINISTER ALAIN LAMASSOURE SAID PARIS HAD ACCEPTED THE OILSEED ACCORD AFTER RECEIVING CLARIFICATIONS FROM OTHER EC COUNTRIES THESE POINTS APPEARED AIMED AT PRESENTING THE PACT IN A MORE FAVORABLE LIGHT TO THE POWERFUL FRENCH FARM LOBBY WHICH HAS CONDEMNED THE DEAL PEOPLE FAMILIAR WITH THE EC NEGOTIATIONS SAID STATEMENTS WERE READ INTO THE MINUTES OF THE MINISTERS MEETING CONCERNING SEVERAL OF THE POINTS RAISED BY FRANCE THESE INCLUDED A DECLARATION THAT THE OILSEEDS ACCORD WAS SEPARATE FROM THE URUGUAY ROUND'S OTHER FARMTRADE NEGOTIATIONS AND A PLEDGE BY THE EC COMMISSION TO STUDY USING LAND TAKEN OUT OF OILSEED PRODUCTION TO GROW NONFOOD PRODUCTS SUCH AS BIOFUELS BUT THE SAME EC SOURCES DENIED THAT THE MINISTERS HAD MADE SOME OF THE PROMISES THAT FRANCE SAID IT OBTAINED THESE MAINLY CONCERN HOW EC COUNTRIES DIVIDE AMONG THEMSELVES ANY REDUCTION IN OILSEED PRODUCTION CAUSED BY THE ECUS ACCORD THE ECUS AGREEMENT APPROVED YESTERDAY LIMITS THE AMOUNT OF LAND THE EC CAN USE TO PLANT OILSEEDS SUCH AS RAPE SOYBEANS AND SUNFLOWER IT IS AIMED AT ENSURING CONTINUED ACCESS TO THE EC MARKETS FOR US SOYBEANS FRANCE'S ACCEPTANCE OF THE OILSEED ACCORD HAD BEEN EXPECTED SINCE EC FARM MINISTERS AGREED TO INCREASE COMPENSATION TO FARMERS TAKING LAND OUT OF PRODUCTION BUT THE FRENCH GOVERNMENT REITERATED ITS OPPOSITION TO OTHER ASPECTS OF THE WIDER ECUS ACCORD ON FARM TRADE CONCLUDED LAST YEAR AT BLAIR HOUSE IN WASHINGTON ALAIN JUPPE FRENCH FOREIGN MINISTER INSISTED THAT THE REST OF THE BLAIR HOUSE AGREEMENT IS UNACCEPTABLE FRANCE IS PARTICULARLY ANGERED BY CURBS ON SUBSIDIZED EC CEREAL EXPORTS AND CONCESSIONS TO THE US ON ITS EXPORTS OF CORN GLUTEN A CEREAL SUBSTITUTE DESPITE MR JUPPE'S HARDLINE COMMENTS ON BLAIR HOUSE EC OFFICIALS SAID THEY WERE ENCOURAGED THAT THE NEW CENTERRIGHT FRENCH GOVERNMENT APPEARS TO BE TAKING A MORE POSITIVE VIEW TOWARD REACHING A URUGUAY ROUND AGREEMENT SEPARATELY THE EC MINISTERS APPROVED WITHOUT DISCUSSION 15 MILLION IN TRADE SANCTIONS AGAINST THE US IN RESPONSE TO US RETALIATION OVER A DISPUTE ON PUBLIC PROCUREMENT THE SANCTIONS BAR US COMPANIES FROM BIDDING FOR CERTAIN GOVERNMENT CONTRACTS IN THE EC BOTH THE EC AND THE US HAVE PLAYED DOWN THE SANCTIONS HOPING NOT TO UNDERMINE THE URUGUAY ROUND TALKS 9306090059 930512 REVIEW & OUTLOOK EDITORIAL BILL BEER AND SIN WHHOOOOOAAAAA VERY GOOD NEWS INDEED AMID THE FLOW OF LEAKS AND WHAT NOT FROM 1600 PENNSYLVANIA AVENUE ABOUT HEALTHCARE REFORM COMES AN INKLING OF INFORMATION THAT BEER PROBABLY WON'T BE SINTAXED TO HELP PAY FOR IT ALL THE WORD IS THAT BEER WILL GET BY BECAUSE THE CLINTON TEAM'S STRATEGIC PLANNERS HAVE DECIDED THAT IT'S A DRINK OF THE WORKING CLASS TO BE SURE EXEMPTING THE CONSUMPTION OF BEER FROM HIS LIST OF SINFUL BEHAVIOR WOULD MAKE THE GEORGETOWNTRAINED PRESIDENT A WORKING CLASS HERO WHO'S TO COMPLAIN BUTUUUUURRRPPPPHHHHAAH EXCUSE US WHAT'S THIS ABOUT A DRINK OF THE WORKING CLASS LIKE ALL BELIEVING AMERICANS WE HAVE SPENT ENDLESS HOURS BEFORE THE REVEALING LIGHT OF TELEVISED PROFESSIONAL SPORTS THE NBA THE NFL HOCKEY BASEBALL BOXING STOCKCAR RACES AUSTRALIAN RULES FOOTBALL AND IN ALL OUR YEARS OF CONSUMING BEER COMMERCIALS WE CAN'T RECALL EVER SEEING A RECOGNIZABLE MEMBER OF THE WORKING CLASS OR ANYONE DOING ANY SORT OF WORK EXCEPT MAYBE THE BARTENDER AND A FEW DELIRIOUS COWBOYS FROM THE LOOKS OF THINGS IN THE BEER COMMERCIALS TODAY WE'D SAY THAT THE PRESIDENT WOULD ESSENTIALLY BE MAKING THE WORLD SAFE FOR BEACH PARTIES AND THE SILVER BULLET GIRL NO PROBLEMO WITH THAT EITHER FROM WHERE WE'RE SITTING BUT LET'S BE HONEST THIS IS TAX RELIEF FOR THE PLAYING CLASS WE ALSO SEE WHERE ANHEUSERBUSCH NOTHING BEATS A COLD BUDWEISER NOTHING BEATS A BUD IN ITS OWN DEFENSE AGAINST THE TAX ISSUED A BRIEFING PAPER TITLED TAXING JOE AND JANE SIXPACK NOW MORE THAN EVER AN UNFAIR APPROACH TRULY GOOD NEWS THIS IS AS WELL FOR JOE AND JANE PARTYKEG LAST SEEN WAITING FOR THE BUD TRUCK TO MAKE IT UP THE SIDE OF THE BUILDING TO THEIR PENTHOUSE BY THE WAY LET'S LOFT ONE FOR CONGRESSMAN DICK GEPHARDT LIKE BUDWEISER FROM ST LOUIS MISSOURI AND A VOCAL OPPONENT OF WHACKING BEER WITH ANOTHER IMPOST WHICH NO DOUBT WOULD BE A DISINCENTIVE TO INVEST SOME OF THE OLD AFTER PAYROLLTAX INCOME IN MORE BUD SURELY THOUGH NOT ALL MEMBERS OF THE BEERING CLASSES WOULD PASS ON THE CHANCE TO SEND THE PRESIDENT MORE MONEY TO REDISTRIBUTE THE NATION'S HEALTH HOW ABOUT THOSE PEOPLE IN THE HEINEKEN COMMERCIALS WHEREIN A GROUP OF THIRTYSOMETHING GUYS ARE SITTING AROUND TALKING AND BONDING ATTENDED TO BY GIRLS FROM THE J CREW CATALOG AND ONE OF THE GUYS SAYS OHBYTHEWAY HE'S QUITTING HIS JOB TO OPEN A RESTAURANT EVEN THOUGH WHAT HE REALLY WANTS TO BE IS A RELIEF PITCHER WE'D LIKE TO PROPOSE A CONFISCATORY TAX ON UNEARNED SMUGNESS BUT SIN TAXES SINCE WHEN WAS BEER A SIN OR WINE WHISKEY AND A BOMBAY MARTINI YOU DON'T HAVE TO BE A MEMBER OF THE WORKING CLASS TO SENSE THAT SIN TAXES ARE THE LAST REFUGE OF IRREDEEMABLE POLITICIANS THESE FALLEN POLS IF THEY COULD WOULD LAY A TAX ON BEHAVIOR THAT IS MOSTLY PERSONAL INVARIABLY VENIAL AND ALWAYS CORRECTABLE BY SINCERE CONFESSION THEIR OWN SINS HOWEVER ARE THE SINS OF THE SPENDERS THEIR ACTS ARE COMMITTED IN PRIVATE ARE MORTAL IN NATURE AND BEYOND HUMAN FORGIVENESS SEE RELATED LETTERS LETTERS TO THE EDITOR POPPING A BREWSKI IS HARDLY A SIN WSJ JUNE 9 1993 9305120077 YY93 MM06 9306090058 930506 POLITICS & POLICY DAUGHTERS OF CONFEDERACY'S INSIGNIA DIVIDES SENATE JUDICIARY COMMITTEE BY JOE DAVIDSON STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE CIVIL WAR'S LEGACY HAS SPARKED A SQUABBLE IN THE SENATE JUDICIARY COMMITTEE SEN STROM THURMOND REPUBLICAN OF SOUTH CAROLINA HAS PROPOSED TO RENEW A DESIGN PATENT FOR THE UNITED DAUGHTERS OF THE CONFEDERACY INSIGNIA AN EXTENSION THAT HAS ROUTINELY PASSED THE SENATE ROUGHLY EVERY 14 YEARS SINCE THE PATENT WAS FIRST GRANTED 99 YEARS AGO BUT CONGRESS NEVER HAD SEN CAROL MOSELEYBRAUN BEFORE THE SENATE'S ONLY BLACK MEMBER SEN MOSELEYBRAUN AN ILLINOIS DEMOCRAT ARGUES THE CONGRESS SHOULD NOT GIVE ITS IMPRIMATUR TO AN INSIGNIA THAT INCLUDES THE FIRST FLAG OF THE CONFEDERACY WHICH FOUGHT TO KEEP BLACKS UNDER SLAVERY THE ALREADY EMOTIONAL ISSUE GETS MORE COMPLICATED WITH THE UNLIKELY ENTRANCE OF CONSUMER PRODUCTS MAKER PROCTER & GAMBLE CO P&G FINDS ITSELF ON THE SAME SIDE OF THE BILL AS THE DAUGHTERS BECAUSE THE BILL INCLUDES A PATENT EXTENSION FOR OLESTRA A P&G PRODUCT DEVELOPED FOR USE IN LOWCALORIE SNACKS STUART EIZENSTAT A P&G LOBBYIST SAYS THE COMPANY IS TRYING TO STAY OUT OF THE FIGHT BUT ADDS THAT IT WOULD BE DEVASTATING TO US AND TO US R&D POLICY IF THE OLESTRA PATENT IS NOT EXTENDED MR EIZENSTAT SAYS THE THREEYEAR RENEWAL SOUGHT FOR OLESTRA IS NECESSARY BECAUSE LENGTHY FOOD AND DRUG ADMINISTRATION PROCEDUAVE PREVENTED AN EARLIER ENTRY TO THE MARKET THE JUDICIARY COMMITTEE IS SCHEDULED TO CONSIDER THE PATENT RENEWAL TODAY IN THE MEANTIME THE DAUGHTERS HAVE STARTED FIGHTING TO PROTECT THEIR REPUTATION WE DO NOT CELEBRATE THE CONFEDERACY SAYS TOMMIE LACAVERA THE PRESIDENT OF THE DAUGHTERS WHOSE GREATGREATGRANDFATHER WAS A CONFEDERATE PRIVATE FROM GEORGIA WE MERELY HONOR AND REMEMBER OUR ANCESTORS WHO FOUGHT FOR THE CONFEDERACY ACCORDING TO MS LACAVERA THE GROUP HAS 24000 MEMBERS AND CHAPTERS IN 31 STATES SHE SAYS SHE CAN'T SAY FOR SURE IF THERE ARE ANY BLACK MEMBERS BUT MEMBERSHIP IN THE GROUP IS RESTRICTED TO DIRECT DESCENDANTS OF CONFEDERATE VETERANS A REQUIREMENT THAT EXCLUDES MOST BLACKS NONETHELESS THE ORGANIZATION DOES NOT DISCRIMINATE IN ITS SOCIAL ACTIVITIES MS LACAVERA SAYS THE GROUP'S PROJECTS INCLUDE SENDING PACKAGES TO SOLDIERS OVERSEAS SPONSORING SCHOOL ESSAY CONTESTS ON CONFEDERATE HISTORICAL FIGURES AND PRESENTING ANNUAL AWARDS TO GRADUATES OF THE MILITARY ACADEMIES I NEVER THINK ABOUT SLAVERY SHE ADDS THAT NEVER ENTERS INTO THE WORK THAT I'M DOING WE DON'T CELEBRATE THE WAR THERE ARE NO WINNERS IN ANY WARS BUT WE DO HONOR THE MEN AND WOMEN OF THAT PERIOD WHO STOOD UP FOR WHAT THEY BELIEVED WAS RIGHT SEN THURMOND WHO WAS ONCE KNOWN FOR HIS SEGREGATIONIST VIEWS CALLS THE DAUGHTERS AN OUTSTANDING PHILANTHROPIC ORGANIZATION HE SAID IN A STATEMENT THAT THE PATENT OF THE UDC INSIGNIA WAS GRANTED IN 1898 AND HAS BEEN RENEWED A NUMBER OF TIMES SINCE THEN I SEE NO REASON WHY IT SHOULD NOT BE RENEWED AGAIN BUT IN A LETTER TO COMMITTEE MEMBERS SEN MOSELEYBRAUN SAID THOSE OF US WHOSE ANCESTORS WERE HELD AS HUMAN CHATTEL UNDER THE FLAG OF THE CONFEDERACY HAVE NO CHOICE BUT TO HONOR OUR ANCESTORS BY ASKING WHETHER SUCH CONGRESSIONAL ACTION IS APPROPRIATE SEN MOSELEYBRAUN ALSO SENT HER COLLEAGUES A LETTER FROM THE PATENT AND TRADEMARK OFFICE OF THE COMMERCE DEPARTMENT THAT INDICATES THE DAUGHTERS DON'T NEED A PATENT EXTENSION TO PROTECT THEIR INSIGNIA IF A NONPROFIT ORGANIZATION HAS USED ITS INSIGNIA TO DISTINGUISH ITS SERVICES FROM THOSE PROVIDED BY OTHERS THESE MARKS ARE PROTECTED UNDER COMMON LAW IN THE GEOGRAPHICAL AREA IN WHICH THEY HAVE ACTUALLY BEEN USED WROTE MICHAEL KIRK ACTING ASSISTANT COMMERCE SECRETARY IN A LETTER TO SEN MOSELEYBRAUN AN ORGANIZATION ALSO MAY APPLY FOR FEDERAL TRADEMARK REGISTRATION HE WROTE HOWEVER A REPUBLICAN COUNSEL TO THE COMMITTEE SAYS A PATENT IS STRONGER PROTECTION THAN COMMON LAW PROTECTION TRADEMARKS HE ADDS GENERALLY ARE USED FOR PRODUCTS THAT ARE SOLD NOT ORGANIZATIONAL INSIGNIA SEE RELATED LETTERS LETTERS TO THE EDITOR SOUTHERN HERITAGE UNFAIRLY VILIFIED WSJ JUNE 9 1993 9305060138 YY93 MM06 9306090041 930507 SHIFTING GEARS SOME MANUFACTURERS DROP EFFORTS TO ADOPT JAPANESE TECHNIQUES THEY HIT SNAGS WITH IDEAS SUCH AS QUALITY CIRCLES JUSTINTIME DELIVERIES MELDING PEOPLE AND MACHINES BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL SOME AMERICAN MANUFACTURERS ARE DISCARDING BILLIONS OF DOLLARS OF INVESTMENT THEY MADE IN THE 1980S TO ADOPT JAPANESE MANUFACTURING IDEAS THEY HAVEN'T DECIDED THAT THE JAPANESE SYSTEMS DON'T WORK RATHER THEY REALIZE THAT SOME OF THOSE SYSTEMS HOWEVER USEFUL IN LIFTING PRODUCTIVITY IN JAPAN HAVEN'T ACHIEVED MUCH IN THEIR OWN PLANTS FEDERALMOGUL CORP DECIDING THAT ITS AUTOMATION HAD GONE TOO FAR HAS REMOVED MUCH OF THE FANCY EQUIPMENT AT AN AUTOPARTS PLANT AND GENERAL MOTORS CORP IS NOW RELYING MORE HEAVILY ON PEOPLE POWER WHIRLPOOL CORP HAS SOURED ON JAPANESESTYLE QUALITY CIRCLES AS A MEANS OF TAPPING EMPLOYEE IDEAS AND GENERAL ELECTRIC CO AND CORNING INC HAVE TURNED TO OTHER WAYS OF TAPPING EMPLOYEE IDEAS LOSING FAVOR AT SOME COMPANIES IS THE JAPANESE JUSTINTIME SYSTEM OF MINIMIZING INVENTORY BY HAVING SUPPLIERS DELIVER PARTS ONLY AS NEEDED WE'RE RELEARNING MANUFACTURING SAYS JOHN F WELCH JR GE'S CHAIRMAN NOT ALL US COMPANIES HAVE FLOUNDERED IN IMITATING THE JAPANESE METHODS OF COURSE CHRYSLER CORP FOR INSTANCE ATTRIBUTES ITS RECENT SUCCESS PARTLY TO COPYING HONDA MOTOR CO'S APPROACH TO PRODUCT DEVELOPMENT BUT THESE COMPANIES ARE IN THE MINORITY THE CURRENT EFFORT TO REDESIGN SIGNIFICANT AREAS OF THE MANUFACTURING LANDSCAPE REFLECTS A STUNNING ADMISSION OF FAILURE NEARLY 10 YEARS AFTER RUSHING TO COPY THE JAPANESE MANY AMERICAN COMPANIES HAVE FAILED TO DUPLICATE LET ALONE SURPASS THEIR EFFICIENCY THE AMERICANS WERE HAMPERED BY CULTURAL DIFFERENCES AND THEY ACKNOWLEDGE BY MISAPPLICATION OF WHAT THEY SAW IN JAPANESE PLANTS ALTHOUGH WHAT THEY LEARNED FROM JAPAN IMPROVED QUALITY AND PRODUCTIVITY IN SOME AREAS IT HASN'T MADE THEM REALLY COMPETITIVE SAYS RANGANATH NAYAK WHO HEADS THE WORLDWIDE OPERATIONSMANAGEMENT PRACTICE AT ARTHUR D LITTLE INC A CONSULTING FIRM COMPANIES HAVE BEEN OBSESSED WITH ONE FAD IDEA OR ANOTHER AT THE COST OF THEIR OVERALL FOCUS HE ADDS THE UPSHOT PALTRY GAINS IN RELATION TO THE 800 BILLION IN CAPITAL INVESTMENT AND 150 BILLION IN WORKER TRAINING THAT HE ESTIMATES AMERICAN MANUFACTURERS SPENT IN THE PAST DECADE TO IMPLEMENT JAPANESE IDEAS SURVEYING 500 MANUFACTURERS LAST YEAR LITTLE FOUND THAT MOST OF THEM SIMPLY AREN'T IMPROVING FAST ENOUGH IN RELATION TO THE COMPETITION ADDS MICHAEL DERTOUZOS A MANUFACTURING EXPERT AT MASSACHUSETTS INSTITUTE OF TECHNOLOGY I HAVE TALKED TO SOME 100 FIRMS EXCEPT FOR A HANDFUL THEY'RE FLAILING AWAY ONE REASON IS THAT AMERICAN COMPANIES WENT OVERBOARD IN COPYING JAPANESE AUTOMATION FEDERALMOGUL FOR INSTANCE MISTAKENLY SURMISED THAT THE JAPANESE GOT A MAJOR COST ADVANTAGE FROM COMPUTERS ROBOTS AND OTHER AUTOMATED EQUIPMENT BURDENED WITH LABOR COSTS SIGNIFICANTLY HIGHER THAN THOSE IN JAPAN AND FACING MOUNTING PRESSURE FROM AUTO MAKERS TO CUT PARTS PRICES THE COMPANY REVAMPED ITS LANCASTER PA AUTOPARTS PLANT IN 1987 WITH STATEOFTHEART AUTOMATION AND WITH IDEAS IMPORTED FROM JAPAN BUT BEFORE LONG FEDERALMOGUL FOUND THAT ALTHOUGH THE PLANT TURNED OUT PARTS MUCH FASTER THAN BEFORE IT COULDN'T SHIFT GEARS QUICKLY TO SWITCH FROM MAKING A SMALL CLUTCH BEARING TO A LARGER ONE FOR INSTANCE REQUIRED A SLEW OF CHANGES RANGING FROM READJUSTING PARTS FEEDING SYSTEMS TO REALIGNING THE MECHANISMS THAT HOLD PARTS IN PLACE WHILE THEY'RE BEING MACHINED MOREOVER THE COMPLEX MACHINERY REQUIRED EXTENSIVE MAINTENANCE AS A RESULT THE AUTOMATION NOT ONLY FAILED TO LOWER COSTS BUT ALSO CREATED A SERIOUS PROBLEM IN AN AUTOMOTIVE MARKET MARKED BY INCREASING PROLIFERATION OF NEW MODELS THE PLANT COULDN'T RESPOND QUICKLY TO CUSTOMER NEEDS WE LACKED FLEXIBILITY SAYS FRED MUSONE THE PRESIDENT OF THE CHASSIS GROUP ABOUT A YEAR AGO FEDERALMOGUL REVAMPED THE PLANT AGAIN OUT WENT THE ROBOTS MOST PRODUCTIONLINE COMPUTERS THE OVERHEAD CONVEYER BELTS THAT CARRIED SEMIFINISHED PARTS ALONG THE PRODUCTION LINE AND AUTOMATED GUIDED VEHICLES THESE WERE TROLLEYS THAT GUIDED BY SIGNALS FROM UNDERGROUND WIRES HAULED PARTS FROM ONE WORKSTATION TO ANOTHER NOW WHEN A PRODUCTION LINE IS SWITCHED FROM ASSEMBLING SAY A WASHER RING FOR A STEERING COLUMN OF A CAR TO THAT OF A PICKUP WORKERS SIMPLY WHEEL AWAY SECTIONS OF THE ASSEMBLY LINE AND REPLACE THEM WITH THOSE GEARED FOR THE NEXT PRODUCT THE PARTS THE WORKERS NEED ARE KEPT IN BINS WITHIN EASY REACH THE PLANT WHICH ASSEMBLES 1800 DIFFERENT PARTS NOW PRODUCES THREE TIMES AS MANY DIFFERENT VARIETIES AS BEFORE IN THE SAME AMOUNT OF TIME AND BECAUSE IT CAN SWITCH FROM ONE PART TO ANOTHER QUICKLY IT PRODUCES ONLY WHAT ITS CUSTOMERS NEED RIGHT THEN IT MAKES BATCHES OF ONLY 250 TO 500 PARTS AT A TIME PREVIOUSLY IT MADE BATCHES OF 5000 TO 10000 AND STOCKED PARTS IN ANTICIPATION OF ORDERS VERY CLEARLY WE MADE SOME POOR DECISIONS ONE OF THEM WAS THAT HIGHTECH WAS THE ANSWER MR MUSONE SAYS FEDERALMOGUL HAS HAD TO WRITE OFF THE COST OF SUCH MISTAKES WHOSE MAGNITUDE HE INDICATES ONLY BY SHAKING HIS HEAD NOW THE VERY SIGHT OF A COMPUTER ON THE FACTORY FLOOR AGITATES MR MUSONE AS HE WALKS THROUGH THE PLANT TO SHOW OFF ITS SIMPLICITY HE PAUSES AT A MONITOR DISPLAYING DATA ABOUT THE PARTS BEING PRODUCED AND THEIR DELIVERY SCHEDULES I DON'T LIKE THIS A BIT HE SAYS POINTING AT THE COMPUTER BUT ON THIS ONE I HAVE HAD TO SUCCUMB TO THE PLANT MANAGER ALSO GOING OUT OF STYLE IN THE US ARE QUALITY CIRCLES IN WHICH WORKERS DRUM UP IDEAS TO TWEAK THE PRODUCTION PROCESS TO IMPROVE QUALITY KEVIN COONEY A WHIRLPOOL DIVISION VICE PRESIDENT RECALLS HOW A DECADE OR SO AGO HE WAS ENAMORED OF THE IDEA THAT THE SUGGESTIONS FROM WORKERS WERE DRIVING QUALITY IN JAPAN SO THE COMPANY LIKE MANY IN THE US FORMED SMALL GROUPS OF EMPLOYEES IN VARIOUS AREAS OF MANUFACTURING AND SOLICITED THEIR IDEAS IT ALSO TRAINED THEM TO APPLY QUALITYCONTROL TECHNIQUES IT TAUGHT THEM HOW TO CONDUCT MEETINGS AND SOLVE PROBLEMS IT EMPHASIZED THE IMPORTANCE OF WORKING AS A TEAM IN MANY CASES IT WAS THE FIRST TIME WE SAT DOWN WITH EMPLOYEES MR COONEY SAYS NOW THE COMPANY HAS ABANDONED QUALITY CIRCLES MR COONEY SAYS THE MEETINGS WEREN'T SUFFICIENTLY FOCUSED AND THE WORKERS DIDN'T UNDERSTAND THE OBJECTIVE THEY ENDED UP DISCUSSING A LOT OF TANGENTIAL ISSUES INCLUDING THE COLOR OF PAINT IN THE RESTROOM MR COONEY SAYS QUALITY CIRCLES DIDN'T DRIVE QUALITY INSTEAD WHIRLPOOL INSTITUTED GAINSHARING PLANS UNDER WHICH EMPLOYEES PARTICIPATE IN SAVINGS RESULTING FROM QUALITY IMPROVEMENTS WE FOUND EMPLOYEES WERE HAPPIER WHEN THEY WERE MAKING REAL CONTRIBUTION MR COONEY SAYS IN CONTRAST TO WHIRLPOOL GE FOUND THE JAPANESE SYSTEM TOO RIGID AND NARROW FOR FREEWHEELING AMERICAN WORKERS IN QUALITY CIRCLES WORKERS DISCUSS DEFINED TOPICS IN DOZENS OF DIFFERENT AREAS OFTEN ISOLATED FROM EACH OTHER AND THEY GET SO MUCH DIRECTION FROM THE TOP THAT THEIR CONTRIBUTIONS ARE SELDOM SUBSTANTIAL JAPANESE COMPANIES ARE VERY HIERARCHICAL WE AREN'T AMERICAN WORKERS DON'T STAND UP AND SALUTE SAYS GARY ROGERS WHO HEADED GE'S HOMEAPPLIANCE DIVISION IN LOUISVILLE KY WHEN IN 1990 IT BECAME ONE OF THE FIRST GE BUSINESSES TO REPLACE QUALITY CIRCLES WITH WORKOUT UNDER WORKOUT WORKERS AND MANAGERS PERIODICALLY MEET IN A TOWN HALLTYPE ATMOSPHERE DESIGNED TO ENCOURAGE WORKERS TO OFFER RADICALLY NEW IDEAS INSTEAD OF A DOZEN WORKERS IN A SPECIFIC GROUP SUGGESTING A DOZEN WAYS TO TWEAK THE SAME PROCESS WHICH OFTEN GENERATE ONLY MARGINAL IMPROVEMENTS WORKERS PROPOSE IDEAS THAT MAY REQUIRE SIGNIFICANT CHANGES AND INVESTMENT MANAGERS RESPOND TO WORKERS' SUGGESTIONS ON THE SPOT WE HAVE BEEN ENDING UP SAYING YES' TO 90 OF THEIR IDEAS SAYS MR ROGERS WHO NOW HEADS GE'S PLASTICS UNIT SOME COSTCUTTING SUGGESTIONS GE APPLIANCES ACCEPTED IT DECIDED TO BUILD WIRE RACKS FOR REFRIGERATORS INHOUSE RATHER THAN BUYING THEM AND IT REDESIGNED A WORK AREA FOR FASTER ASSEMBLY OF DISHWASHER DOORS WORKOUT ALSO DIFFERS FROM QUALITY CIRCLES BY OFFERING INDIVIDUAL RECOGNITION THE NAMES OF WORKERS WHO CONTRIBUTE USEFUL IDEAS ARE DISPLAYED ON NOTICE BOARDS IN SOME CASES WORKERS ARE REWARDED WITH STOCK OPTIONS DINNER FOR TWO OR A CASH GIFT OF 150 SO WHAT'S THE RIGHT BLEND OF TECHNOLOGY AND PEOPLE POWER IN AMERICA CORNING THINKS IT HAS FOUND ONE IN A 1989 REFURBISHING OF A BLACKSBURG VA PLANT THAT MAKES CERAMICS FOR CATALYTIC CONVERTERS IT INSTITUTED A PEOPLE SYSTEM FOCUSING ON JOB SATISFACTION EARLIER THE COMPANY HAD IGNORED THAT IT COPIED JAPAN'S EXTENSIVE AUTOMATION AS THE WAY TO GO BECAUSE THE JAPANESE WERE BETTER THAN US IN MANUFACTURING SAYS NORMAN GARRITY AN EXECUTIVE VICE PRESIDENT BUT HE SAYS IT FOUND THAT HEAVY AUTOMATION SAPPED EMPLOYEE MOTIVATION STUDYING HOW TO AVOID THAT PROBLEM ROBERT HOOVER CORNING'S PLANT MANAGER IN BLACKSBURG SAYS THAT IN 1987 HE CAME UPON A PROCTER & GAMBLE CO LIQUIDDETERGENT PLANT IN LIMA OHIO HE WAS IMPRESSED THE P&G PLANT IS VIRTUALLY RUN BY WORKERS HE SAYS CORNING ADOPTED SIMILAR PROCEDURES IT LET ANY OF THE 200 WORKERS SIGN A PURCHASE ORDER UP TO 500 WITHOUT AUTHORIZATION ELIMINATED TIME CLOCKS CREATED ONLY ONE JOB CLASSIFICATION WITH ONE MANAGER FOR 60 EMPLOYEES AND TRAINED EACH EMPLOYEE TO HANDLE AS MANY AS 15 DIFFERENT JOBS THE COMPANY DECIDED TO MAINTAIN SIMILAR LEVELS OF EMPLOYEE INVOLVEMENT WHEN SELECTING MANUFACTURING TECHNOLOGY THERE WERE PLACES WE COULD HAVE ROBOTIZED BUT WE DECIDED AGAINST IT MR HOOVER SAYS BECAUSE WE WANTED HUMANS TO GIVE US THE CRITICAL FEEDBACKS THE EXTRUSION PROCESS FOR CERAMICS FOR INSTANCE EMPLOYS JUST ENOUGH COMPUTERS AND SENSORS TO DISPLAY CRUCIAL INFORMATION THEN THE WORKERS RATHER THAN ANOTHER SET OF COMPUTERS AND SENSORS DECIDE WHETHER TO INTERVENE AND CHANGE THE KILN TEMPERATURE OR SPEED OF FLOW THE HUMAN MIND IS SUCH A WONDROUS THING THAT WE WANT TO TAP THAT MR HOOVER SAYS EVEN IN BORING AND REPETITIVE JOBS WE HAVE MOVED AWAY FROM AUTOMATION BECAUSE HUMANS ADAPT AND ROBOTS DON'T THE PLANT HAS INCREASED ITS PRODUCTIVITY ABOUT 25 ANNUALLY SINCE ITS REFURBISHING AND IT WAS PROFITABLE IN THE FIRST YEAR MR GARRITY SAYS ITS INTEGRATION OF PEOPLE AND TECHNOLOGY HAS MADE IT SOMETHING OF A SHOWCASE SO MANY AMERICAN JAPANESE AND EUROPEAN COMPANIES WANT TO LOOK IT OVER THAT IT CONDUCTS A REGULAR ONCEAMONTH TOUR AND EVEN CHARGES A FEE GM TOO IS TURNING ON THE PEOPLE POWER IN THE EARLY 1980S THE NO 1 AUTO MAKER BECAME THE MOST STRIKING EXAMPLE OF AMERICAN MANUFACTURERS' PURSUIT OF TECHNOLOGY GM LIKED TO SHOW OFF ITS EFFORTS AT A CADILLAC PLANT BUILT IN HAMTRAMCK MICH IN 1985 BUT NOW A LOT OF THE PLANT'S AUTOMATION IS GONE PEOPLE HAVEN'T SIMPLY REPLACED MACHINES WORKERS CALL SUPPLIERS IF A PART IS DEFECTIVE AND EVEN SUGGEST IMPROVEMENTS IN ADDITION DESIGNATED EMPLOYEES SEEK FEEDBACK FROM CUSTOMERS WHO HAVE BOUGHT THE CARS WHEN WILLIAM HOWEY AN ASSEMBLYLINE WORKER WHO ALSO COORDINATES QUALITYIMPROVEMENT EFFORTS CALLED SOME CADILLAC BUYERS HE LEARNED THAT THE CAR'S DOORS DIDN'T SWING OPEN EFFORTLESSLY THEN THE WORKERS DECIDED RIGHT ON THE FACTORY FLOOR TO CHANGE THE ANGLE OF THE LATCH SYSTEM IF A MAJOR DESIGN CHANGE IS REQUIRED THE ENGINEERS ARE CALLED IN OUR HOURLY EMPLOYEES ARE NOW EMPOWERED TO USE THEIR MINDS A GM SPOKESWOMAN SAYS THE URGENCY OF RESPONDING TO CUSTOMER NEEDS IS RAISING DOUBTS ABOUT RIGID PURSUIT OF ANOTHER JAPANESE CONCEPT JUSTINTIME DELIVERY OF PARTS THIS SYSTEM KNOWN AS KANBAN IN JAPANESE WORKS WELL IN JAPAN WHERE SUPPLIERS TEND TO BE CLUSTERED AROUND THEIR MAJOR CUSTOMERS IN THE US DESPITE THE GREATER DISTANCES MANY COMPANIES HAVE BEEN RELYING ON FREQUENT PROMPT DELIVERIES FROM SUPPLIERS BUT GE APPLIANCES FOUND THAT LOW INVENTORIES OF SOME PARTS IT GETS 475 PARTS FROM 75 SUPPLIERS PREVENTED IT FROM RESPONDING TO CUSTOMER DEMANDS QUICKLY SO IT RECENTLY INCREASED BY 24 ITS INVENTORY OF PARTS WITH LONG DELIVERY TIMES THE CHANGE HELPS IT RESPOND NOW TO CUSTOMER ORDERS IN 36 WEEKS DOWN FROM 18 WEEKS IN 1990 WE ARE GETTING THE FACTORY CLOSER TO THE CUSTOMER SAYS RICHARD BURKE THE UNIT'S VICE PRESIDENT OF MANUFACTURING THE BENEFITS OF A FASTER ORDERTODELIVERY CYCLE MORE THAN OFFSET THE COST OF STOCKING PARTS JOHN CASSIDY DIRECTOR OF RESEARCH AT UNITED TECHNOLOGIES CORP SAYS MANY COMPANIES ARE LEARNING THAT THE PRIMARY MOTIVE IN JUSTINTIME ISN'T REDUCING INVENTORY THE JAPANESE DEVISED IT HE SAYS TO EXPOSE THE WEAK POINTS ON THE MANUFACTURING LINE WITHOUT THE BUFFER HE EXPLAINS WORKERS HAVE TO KEEP PRODUCTION DEFECTFREE WE MISPLACED THE GOAL SAYS MR CASSIDY WHO SPENT A YEAR STUDYING MANUFACTURING IN JAPAN IN ORDER TO ELIMINATE INVENTORY WE FOCUSED OUR EFFORTS ON MATERIALSHANDLING WE FORCED THE SUPPLIER TO TAKE EXTRAORDINARY MEASURES TO SOLVE OUR INVENTORY PROBLEM RATHER THAN LOOKING AT OUR MANUFACTURING PROCESS JAMES HARBOUR A MANUFACTURING SPECIALIST AT A CONSULTING FIRM BEARING HIS NAME SAYS AMERICAN COMPANIES HAVE TO THINK OF MANUFACTURING IN BROADER TERMS THEY MUST FOR INSTANCE DESIGN AND ENGINEER PRODUCTS AND MANUFACTURING PROCESSES WITH QUALITY IN MIND THE AMERICANS ADOPTED QUALITY CIRCLES WITHOUT UPFRONT ENGINEERING AND THOUGHT IT WOULD GENERATE MASSIVE IMPROVEMENT IN QUALITY AND PRODUCTIVITY THEY WERE LIVING IN A DREAM LAND HE SAYS THE IRONY IS THAT MANY OF THE JAPANESE CONCEPTS SUCH AS KANBAN ORIGINATED DECADES AGO IN THE US RISING FROM THE ASHES OF WORLD WAR II THE JAPANESE THEN COPIED THEM EXTENSIVELY THE JAPANESE WERE VERY CREATIVE IN THE APPLICATION OF THE THINGS THEY LEARNED HERE SAYS LARRY SPIEGEL DIRECTOR OF LEAN MANUFACTURING AT GM'S CADILLAC DIVISION WE BROUGHT BACK WHAT WE SAW IN JAPAN AND TRIED TO EXECUTE THEM MECHANICALLY SEE RELATED LETTER LETTERS TO THE EDITOR UNDERSTANDING THE GOAL IN JAPANESE TECHNIQUE WSJ JUNE 9 1993 9305070036 YY93 MM06 9306090036 930520 COUNTERPOINT YEN APPRECIATION DOES REDUCE JAPAN'S SURPLUS BY WILLIAM R CLINE RECENTLY WALL STREET JOURNAL COLUMNISTS PAUL A GIGOT APRIL 16 AND ROBERT L BARTLEY APRIL 29 DENIGRATED APPRECIATION OF THE YEN AGAINST THE DOLLAR AS A POLICY THAT HAS BEEN TRIED REPEATEDLY IN THE PAST AND EACH TIME FAILED TO REDUCE JAPAN'S TRADE SURPLUS INCLUDING THE BILATERAL SURPLUS WITH THE US THE RECORD IS OTHERWISE AS SHOWN IN THE CHART SEE ACCOMPANYING ILLUSTRATION WSJ MAY 20 1993 THE UPPER PANEL SHOWS THE REAL VALUE OF THE DOLLAR AGAINST THE YEN ADJUSTED FOR WHOLESALE PRICE INFLATION THE LOWER PANEL SHOWS JAPAN'S BILATERAL SURPLUS WITH THE US TWO YEARS LATER EXPRESSED AS A PERCENTAGE OF BILATERAL EXPORTS PLUS IMPORTS THE TWOYEAR LAG REFLECTS THE TIME IT TAKES FOR THE EXCHANGERATE PRICE SIGNAL TO PRODUCE ACTUAL EXPORT AND IMPORT CHANGES IT IS EVIDENT THAT THERE HAS BEEN A CLOSE RELATIONSHIP BETWEEN THE REAL EXCHANGE RATE AND THE USJAPAN TRADE BALANCE THE DOLLAR REACHED ITS REAL PEAK AGAINST THE YEN IN 198485 AT ABOUT 25 ABOVE THE LEVEL IN 197880 TWO YEARS LATER IN 198687 JAPAN'S BILATERAL SURPLUS WITH THE US WAS AT A HIGH OF ABOUT 50 OF THE BILATERAL TRADE BASE SIMILARLY TWO YEARS AFTER THE DOLLAR FELL TO ITS LOW IN 1988 THE BILATERAL IMBALANCE FELL TO A LOW IN 1990 AT ABOUT 30 OF THE BILATERAL TRADE BASE UNFORTUNATELY THE DOLLAR TOOK AN INAPPROPRIATE UPWARD EXCURSION IN 198990 BY 1992 THE US PAID THE PRICE IN THE FORM OF A RENEWED RISE IN THE BILATERAL IMBALANCE ON THE BASIS OF PAST EXPERIENCE HOWEVER THE RECENT STRENGTHENING OF THE YEN SHOULD BRING A RENEWED REDUCTION IN THE RELATIVE SIZE OF THE TRADE IMBALANCE WITH JAPAN ALTHOUGH WEAK DOMESTIC DEMAND IN JAPAN'S POSTBUBBLE ECONOMY IS LIKELY TO KEEP THE BILATERAL IMBALANCE FROM FALLING MUCH IN 1993 BEGINNING IN 1994 THE PREDICTED IMBALANCE SHOULD BE BACK DOWN TO THE RANGE EXPERIENCED IN 198183 AS SHOWN IN THE CHART THE BILATERAL DEFICIT IS LIKELY TO STAY IN THE 45 BILLION TO 50 BILLION RANGE IN NOMINAL TERMS BUT IT SHOULD FALL IN REAL TERMS AND ESPECIALLY AS A FRACTION OF THE RISING BILATERAL TRADE BASE VERIFICATION OF THE IMPACT OF THE EXCHANGE RATE HELPS RESOLVE AN INTERNAL TENSION BETWEEN TWO POSITIONS FREQUENTLY ESPOUSED BY THE WALL STREET JOURNAL SKEPTICISM THAT EXCHANGE RATES MATTER BUT ENTHUSIASM FOR FREE TRADE WITHOUT THE HELP OF EXCHANGERATE ADJUSTMENTS IN 198588 TRADE IMBALANCES AND PROTECTIONIST PRESSURES WOULD HAVE BEEN EVEN MORE SEVERE IMPROVED G7 COORDINATION INCLUDING EXCHANGE MARKET INTERVENTION CAN HELP AVOID DISEQUILIBRIUM EXCHANGE RATES LIKE THE OVERLY STRONG DOLLAR IN 198384 AND THOUGH LESS SEVERELY 198990 THAT OFFICIAL VIEWS CAN INFLUENCE THE EXCHANGE RATE SOMETIMES EVEN WITHOUT INTERVENTION WAS VIVIDLY ILLUSTRATED BY THE RISE OF THE YEN AGAINST THE DOLLAR BY NEARLY 14 IN THE PAST FOUR MONTHS AFTER TREASURY SECRETARY LLOYD BENTSEN AND THEN PRESIDENT CLINTON HIMSELF REMARKED PUBLICLY ON THE MERITS OF A STRONGER YEN HOWEVER FISCAL ADJUSTMENT IS THE MORE FUNDAMENTAL WAY TO ENSURE AGAINST AN OVERVALUED DOLLAR OVER THE MEDIUM TERM LARGE FISCAL DEFICITS CAUSE HIGH INTEREST RATES THAT INDUCE INFLOWS OF FOREIGN CAPITAL AND THEREBY BID UP THE DOLLAR THE ADMINISTRATION'S PROGRAM TO REDUCE THE BUDGET DEFICIT THUS PLAYS AN INTEGRAL ROLE IN HELPING KEEP US GOODS AND SERVICES COMPETITIVE ABROAD THE TWOYEAR LAG FROM EXCHANGERATE ADJUSTMENT TO TRADE ADJUSTMENT DOES MEAN THAT DURING THE INTERIM IT IS IMPORTANT FOR POLICY MAKERS NOT TO TURN IN FRUSTRATION TO PROTECTIONIST MEASURES ON EITHER THE IMPORT OR EXPORT SIDE THE RECENT FLIRTATION WITH MANDATORY MARKETSHARE TARGETS FOR US EXPORTS IS REMINISCENT OF A PHRASE THAT CAME OUT OF THE VIETNAM WAR IN ORDER TO SAVE THE MARKET IT WAS NECESSARY TO DESTROY IT THE DISMANTLING OF CONCRETE MONOPOLY PRACTICES AND DISCRIMINATION IN GOVERNMENT PROCUREMENT SHOULD BE PURSUED AGGRESSIVELY BUT ARBITRARY MARKET SHARES SHOULD NOT THE INTELLECTUAL BASIS FOR MANAGED TRADE SEEMS TO BE STRATEGIC TRADE THEORY HOWEVER AS PRINCETON'S GENE GROSSMAN HAS SHOWN THIS THEORY REVERSES IF A SINGLE ASSUMPTION IS CHANGED OLIGOPOLY FIRMS COMPETE BY SETTING A PRICE RATHER THAN A QUANTITY MOREOVER IT IGNORES RETALIATION THE CONSIDERATION THAT DISCREDITED OPTIMAL TARIFF THEORY DECADES AGO AS A BASIS FOR EXTRACTING RENTS FROM OTHER COUNTRIES BY IMPOSING A STIFF IMPORT TARIFF THE EMPIRICAL BASIS IS ALSO WEAK IT IS BY NO MEANS CLEAR WHETHER US SEMICONDUCTOR SALES TO JAPAN ROSE MORE BECAUSE OF INTEL'S 486 CHIP AND OTHER US TECHNOLOGICAL INNOVATIONS OR BECAUSE JAPANESE FIRMS OBEYED THE DIRECTIVES OF BUREAUCRATS UNDER THE USJAPAN SEMICONDUCTOR AGREEMENT AND ITS TARGET OF A 20 SHARE FOR FOREIGN COMPANIES IN THE JAPANESE MARKET THE BOTTOM LINE FOR POLICY IS THAT THE EXCHANGE RATE DOES MATTER AS PRESIDENT CLINTON RIGHTLY TOLD PRIME MINISTER KIICHI MIYAZAWA SIMILARLY THE STATE OF JAPAN'S DOMESTIC DEMAND DOES MATTER FOR US EXPORTS BEYOND GETTING THE MACRO FUNDAMENTALS IN PLACE INCLUDING US FISCAL REFORM THERE IS A CONTINUING NEED FOR US TRADE NEGOTIATORS TO SEEK OUT AND APPREHEND THE SMOKING GUNS OF CONCRETE PROTECTIVE PRACTICES IN JAPAN HOWEVER IF INSTEAD THEY SEEK TO IMPOSE UNILATERAL MARKET SHARE TARGETS WHERE THEY CANNOT IDENTIFY SPECIFIC BARRIERS THEY RISK DISCARDING THE MARKET PROCESS EVEN AS US OFFICIALS PROCLAIM ITS MERITS TO THE RUSSIANS MR CLINE IS A FELLOW AT THE INSTITUTE FOR INTERNATIONAL ECONOMICS IN WASHINGTON SEE RELATED LETTER LETTERS TO THE EDITOR WEAK DOLLAR BAD ECONOMIC THEOLOGY WSJ JUNE 9 1993 9305200077 YY93 MM06 9306080158 930608 DART GROUP'S HAFT REMOVES KIN FROM BOARD FOUR DIRECTORS ARE OUSTED INCLUDING WIFE SON BY 72YEAROLD CHIEF BY TERI AGINS STAFF REPORTER OF THE WALL STREET JOURNAL HERBERT HAFT OUSTED HIS WIFE AND SON AS DIRECTORS OF DART GROUP CORP IN AN APPARENT ATTEMPT TO DEMONSTRATE THAT HE'S STILL THE BOSS DART'S 72YEAROLD CHAIRMAN AND CHIEF EXECUTIVE OFFICER STILL STEAMING OVER SPECULATION THAT HE HASN'T BEEN RUNNING HIS RETAIL AND REALESTATE EMPIRE OUSTED FOUR INCUMBENT DIRECTORS AT DART GROUP HE SAID HE ALSO PLANS TO NOMINATE NEW BOARD SLATES AT TWO OTHER COMPANIES THAT DART CONTROLS CROWN BOOKS CORP AND TRAK AUTO CORP MR HAFT'S WIFE GLORIA WHO COFOUNDED DART WITH HIM AND HIS SON ROBERT 40 WHO UNTIL RECENTLY WAS HEIR APPARENT COULDN'T BE REACHED FOR COMMENT ROBERT HAFT A HARVARD MBA WHO LAUNCHED SEVERAL UNSUCCESSFUL TAKEOVER BIDS WITH HIS FATHER DURING THE 1980S REMAINS PRESIDENT OF DART BASED IN LANDOVER MD HE ALSO REMAINS CHAIRMAN OF CROWN A CHAIN HE FOUNDED AND PROMOTES IN NEWSPAPER ADS IN A TERSE ANNOUNCEMENT DART SAID THE SENIOR MR HAFT ACTED UNILATERALLY USING HIS AUTHORITY AS CHAIRMAN UNDER DELAWARE CORPORATION LAW HE OWNS 57 OF THE VOTING SHARES OF DART GROUP HE REPLACED A FIVEMEMBER BOARD WITH THREE MEMBERS HIMSELF WASHINGTON DC ATTORNEY DOUGLAS BREGMAN 44 WHO HAS HANDLED REALESTATE WORK FOR MR HAFT AND BONITA A WILSON 51 A DIVISIONAL SALES MANAGER AT THE HECHT UNIT OF MAY DEPARTMENT STORES AND WIDOW OF JOHN WILSON WASHINGTON DC CITY COUNCIL CHAIRMAN WHO DIED RECENTLY HERBERT HAFT WHO RARELY SPEAKS PUBLICLY DECLINED TO COMMENT DART'S STATEMENT SAID THE DIRECTORS WEREN'T REELECTED BECAUSE OF A LACK OF AGREEMENT BETWEEN THEM AND THE MAJORITY STOCKHOLDER OVER THE FUTURE DIRECTION AND MANAGEMENT OF DART AND CROWN BOOKS IT ADDED THAT THE NEW DIRECTORS WHO ARE TO TAKE OFFICE JUNE 25 BRING YEARS OF EXPERIENCE RELEVANT TO RETAILING AND REALESTATE TO AID IN THE GOVERNANCE OF THESE CORPORATIONS AND BRING FRESH PERSPECTIVES DART HOLDS 51 OF CROWN BOOKS THE NATION'S THIRDLARGEST BOOKSELLER AND 66 OF TRAK AUTO DART GROUP WHICH HAD SALES OF 13 BILLION IN THE FISCAL YEAR ENDED LAST JAN 31 ALSO HAS INTERESTS IN A 35STORE SUPERMARKET WAREHOUSE OPERATION AND REALESTATE HOLDINGS ROBERT HAFT'S STATUS HAS BEEN IN TURMOIL IN RECENT WEEKS FOLLOWING AN APRIL 23 WALL STREET JOURNAL ARTICLE ABOUT DART GROUP THAT SUGGESTED THE YOUNGER MR HAFT COULD SOON BECOME DART'S CHIEF EXECUTIVE AND NOTED THAT HIS FATHER WAS SPENDING LESS AND LESS TIME AT THE COMPANY PEOPLE FAMILIAR WITH THE SITUATION SAY THAT HERBERT HAFT BECAME INCENSED AFTER THE WALL STREET JOURNAL ARTICLE APPEARED AND HE CHANGED HIS MIND ABOUT RETIRING BREAKING AN EARLIER AGREEMENT WITH HIS SON ACCORDING TO PEOPLE FAMILIAR WITH THE SITUATION MRS HAFT AND THE OTHER DIRECTORS WERE KNOWN TO BE SIDING WITH ROBERT OBSERVERS SEE THE DISPUTE AS A CLASSIC CASE OF AN ELDER EXECUTIVE UNABLE OR UNWILLING TO TURN OVER THE REINS OF HIS COMPANY TO YOUNGER LEADERSHIP RETAILING ANALYSTS GIVE ROBERT HAFT CREDIT FOR DEVELOPING DART'S SUPERSTORE STRATEGY BRINGING IN NEWER EXECUTIVES AT TRAK AND CROWN AND WORKING TO RESTORE DART GROUP'S IMAGE WITH THE INVESTMENT COMMUNITY IN OVERTHECOUNTER TRADING DART GROUP SHARES ROSE 3 TO CLOSE AT 84 BOARD CHANGES ARE SCHEDULED FOR TRAK AND CROWN TOO THE ANNOUNCEMENT SAID SHAREHOLDER MEETINGS WILL BE HELD JUNE 25 AT BOTH COMPANIES WITH MRS WILSON AND MR BREGMAN TO BE ADDED TO THE BOARDS OTHER DIRECTORS AT CROWN WILL BE THE ELDER MR HAFT AND GLENN E HEMMERLE 47 CROWN'S PRESIDENT AND CHIEF EXECUTIVE OFFICER WHO ROBERT HAFT HIRED LAST FALL AT TRAK THE TWO WILL JOIN HERBERT HAFT AND R KEITH GREEN CHIEF OPERATING OFFICER AND PRESIDENT THE CHANGES AT TRAK AND CROWN WILL REMOVE AS DIRECTORS OF BOTH COMPANIES ROBERT HAFT CLAUDINE B MALONE AND JAMES LEONARD THE DART ANNOUNCEMENT SAID THE LATTER TWO DECIDED NOT TO STAND FOR REELECTION BECAUSE OF A LACK OF AGREEMENT BETWEEN THEM AND THE MAJORITY STOCKHOLDER OVER THE DIRECTION AND MANAGEMENT OF THE COMPANIES THE RETIRING DIRECTORS INCLUDING CHARLES FARKAS WHO HAD BEEN ON THE DART BOARD WILL RECEIVE DEFERRED COMPENSATION HEALTH BENEFITS STOCK OPTIONS AND OTHER BENEFITS BUT WON'T BE ALLOWED TO DISCUSS THE DISPUTE IT WAS UNDERSTOOD 9306080157 930608 GETTING TOUGH OFFICIALS WHO'VE DONE BUSINESS WITH JAPAN FRAME TRADE POLICY REFLECTING THEIR FRUSTRATION US WILL INSIST TOKYO CUT SURPLUS IMPORT MORE WHAT GOV CLINTON LEARNED BY BOB DAVIS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CALL IT THE REVENGE OF AMERICAN BUSINESS THE MAIN ARCHITECTS OF PRESIDENT CLINTON'S POLICY TOWARD JAPAN ARE FORMER BUSINESS EXECUTIVES WHO HAVE SPENT 10 YEARS NEGOTIATING DEALS WITH JAPAN AND ARE FED UP WITH THE MEAGER RESULTS IN THEIR VARIOUS CAREERS THE PEOPLE ON THE ADMINISTRATION'S JAPAN TASK FORCE RAN UP AGAINST CLOSED JAPANESE MARKETS AND INVISIBLE BARRIERS AND GOT BOGGED DOWN IN SEEMINGLY INTERMINABLE DISCUSSIONS NOW THEY ARE IN POSITION TO TRY TO DO SOMETHING ABOUT IT YESTERDAY THE GROUP GAVE THE JAPANESE AMBASSADOR THE OUTLINE OF A PLAN IT WILL PRESENT THIS FRIDAY TO A DELEGATION FROM JAPAN IT IS THE TOUGHEST PACKAGE OF TRADE DEMANDS WASHINGTON HAS COME UP WITH IN FOUR DECADES THE US WOULD USE BROAD ECONOMIC LEVERS PLUS SEPARATE NEGOTIATIONS OVER INDIVIDUAL INDUSTRIES TO ATTACK JAPANESE BARRIERS THAT HAVE BEDEVILED US BUSINESSES ONE FACTOR STRENGTHENING US BUSINESS'S HAND WITH THE US NO LONGER WORRIED ABOUT DISRUPTING THE COLD WAR ALLIANCE SECURITY AND DIPLOMATIC CONCERNS ARE TAKING A BACK SEAT THE TEAM IS LED BY NATIONAL ECONOMIC COUNCIL DEPUTY DIRECTOR BOWMAN CUTTER WHO HEADED COOPERS & LYBRAND'S BUSINESSSTRATEGY GROUP AND ADVISED BIG HIGHTECH COMPANIES ON JAPAN OFTEN HIS CLIENTS COULDN'T BREAK IN HE SAYS BECAUSE JAPANESE DEALERS AND SUPPLIERS WOULDN'T BUY FROM FOREIGNERS IT'S FRUSTRATING AS HELL HE SAYS IT DRIVES YOU CRAZY OTHER SENIOR MEMBERS OF THE GROUP UNDERSECRETARY OF STATE JOAN SPERO WHO MADE DOZENS OF TRIPS TO JAPAN TO PRY OPEN THE MARKET FOR AMERICAN EXPRESS CO AND WHITE HOUSE CHIEF ECONOMIST LAURA TYSON WHO BUILT AN ACADEMIC CAREER CHRONICLING US HIGHTECH FIRMS' STRUGGLES TO SELL IN JAPAN JOHN ROLLWAGEN A FORMER SUPERCOMPUTER EXECUTIVE WHO BELIEVES THE US IS AT ECONOMIC WAR WITH JAPAN HELPED SET THE TONE WHEN HE WAS EXPECTED TO BECOME DEPUTY COMMERCE SECRETARY THE CLINTON TRADE PROPOSAL HAS TWO PARTS ON THE BROAD FRONT THE US WANTS JAPAN TO SLASH ITS GLOBAL TRADE SURPLUS BY HALF AND RAISE ITS IMPORTS OF MANUFACTURED GOODS BY ONETHIRD BY 1996 AT THE SAME TIME THE US EXPECTS JAPAN TO ELIMINATE TRADE BARRIERS AND INCREASE IMPORTS IN MORE THAN A DOZEN MARKETS ARRANGED IN FIVE CATEGORIES AND TO AGREE ON WAYS TO MEASURE PROGRESS THE TWO SIDES ARE TRYING TO WORK OUT AN AGENDA IN TIME FOR THE TOKYO SUMMIT IN EARLY JULY OF THE SEVEN BIG INDUSTRIAL POWERS THE US PLAN WON'T SPECIFY IN WRITING THE GOAL OF A 50 CUT IN JAPAN'S TRADE SURPLUS BUT WILL SET OUT A RANGE OF CUTS IT CONSIDERS SATISFACTORY DEPUTY TREASURY SECRETARY ROGER ALTMAN TOSSES OUT PHRASES THAT MIGHT BE USED IN THE TEXT OF THE TRADE PLAN TO DESCRIBE THE US GOALS IMPROVEMENT TRAJECTORY IMPROVED TRAJECTORY BUT IF JAPAN BALKS US OFFICIALS SAY THEY WILL UNILATERALLY SET GOALS ULTIMATELY THE US COULD IMPOSE SANCTIONS IF THE GOALS AREN'T MET THERE'S NO WAY TO GET AROUND THE NEED FOR RESULTS SAYS MR ALTMAN JAPANESE OFFICIALS FROM PRIME MINISTER KIICHI MIYAZAWA ON DOWN ARE DISMAYED BY THE GETTOUGH APPROACH AND SAY THEY WILL RESIST IT IN A RECENT TELEVISION INTERVIEW MR MIYAZAWA ATTRIBUTED THE NEW CLIMATE TO INEXPERIENCE THEY'VE JUST COME TO THE GOVERNMENT SO THEY PROBABLY DON'T UNDERSTAND THINGS WELL HE SAID BUT IT IS EXPERIENCE RATHER THAN NAIVETE THAT'S BEHIND THE NEW STRATEGY FAMILIARITY WITH JAPAN CLINTON OFFICIALS SAY BREEDS FRUSTRATION PLUS A CONVICTION THAT RESULTS COME ONLY AFTER RELENTLESS PRESSURE FOR EXAMPLE WHILE MRS SPERO WAS AT AMERICAN EXPRESS THE COMPANY FOUGHT A PROTRACTED BATTLE TO GAIN A SEAT ON THE TOKYO STOCK EXCHANGE FOR ITS SHEARSON LEHMAN BROTHERS UNIT AND GOT JAPAN TO GO ALONG ONLY AFTER CONGRESS THREATENED TO CURB JAPANESE SECURITIES OPERATIONS HERE THE NEW TRADE POLICY REFLECTS THE DISILLUSIONMENT OF MANY US BUSINESSES OVER HOW FREETRADE PRINCIPLES HAVE PLAYED OUT IN JAPAN VARIOUS BARRIERS THERE COST THE US AS MUCH AS 18 BILLION IN ANNUAL EXPORTS ACCORDING TO THE INSTITUTE FOR INTERNATIONAL ECONOMICS DETERMINED TO CHANGE THAT CLINTON OFFICIALS WANT TO COME ON AS TRUSTBUSTERS IN JAPAN'S ECONOMY FRUSTRATION WITH JAPAN BOILED OVER IN FEBRUARY WHEN A BIGBUSINESS TRADE COMMITTEE RECOMMENDED THAT JAPAN RESERVE PORTIONS OF ITS HIGHTECH MARKETS FOR FOREIGNERS MR CLINTON ENDORSED THE NOTION AND MET WITH THE PANEL FOR ABOUT AN HOUR PRESIDENT BUSH DIDN'T MEET AT LENGTH WITH THE GROUP UNTIL AFTER THE ELECTION THEY THREW HIM A GOINGAWAY PARTY THE BUSINESS GROUP'S IDEAS WERE BOLSTERED THE FOLLOWING MONTH WHEN JAPAN MANAGED TO MEET A TARGET FOR PURCHASES OF FOREIGN SEMICONDUCTORS THE EPISODE MAY HAVE ENSHRINED THE APPROACH IN THE ADMINISTRATION'S EYES AS THE BEST WAY TO DEAL WITH JAPAN SAYS MS TYSON THE WHITE HOUSE ECONOMIST JAPAN'S CAPITALISM DIFFERS FROM AMERICA'S SO THAT SOMETIMES QUOTAS ARE THE ONLY POSSIBLE SOLUTION US CHIP MAKERS THEMSELVES CONFIDENT THEY WERE NOW ENSCONCED IN THE JAPANESE MARKET TOLD A TOKYO NEWS CONFERENCE ON FRIDAY THAT SEMICONDUCTOR QUOTAS WEREN'T NEEDED ANYMORE BUT THEN YESTERDAY WORRIED ABOUT UNDERCUTTING THE CLINTON PLAN BEFORE IT WAS EVEN DELIVERED THE SEMICONDUCTOR TRADE GROUP ISSUED A STATEMENT OF SUPPORT FOR THE CLINTON POLICIES MR CLINTON FORMED HIS OWN IDEAS ABOUT JAPAN DURING FOUR TRIPS HE MADE THERE AS ARKANSAS GOVERNOR IN 1988 HE SPENT A LONG EVENING AT A TOKYO IZAKAYA A KIND OF PUBTALKING AND DRINKING WITH A DOZEN YOUNG JAPANESE BUSINESSMEN ONE STRONG IMPRESSION WAS THAT JAPANESE BUSINESSES ARE MUCH MORE FLEXIBLE THAN THEIR GOVERNMENT WOULD HAVE THE US BELIEVE SAYS CHARLES SLOAN AN ARKANSAS AIDE AS PRESIDENT MR CLINTON HAS BEEN TESTING THAT FLEXIBILITY AT A PRESS CONFERENCE HE BLASTED JAPAN FOR KEEPING MARKETS CLOSED AND KNOCKED THE BUSH ADMINISTRATION BECAUSE IT GOT NOTHING AND I EMPHASIZE NOTHING IN RETURN FOR HOLDING DOWN MINIVAN TARIFFS HE HAS PRODDED TRADE NEGOTIATOR MICKEY KANTOR TO PRESS JAPAN FOR CONCESSIONS BUT MIKE MANSFIELD FORMER AMBASSADOR TO JAPAN SAYS THE US PUTS TOO MUCH BLAME ON TOKYO FOR TRADE PROBLEMS IF THE US PUSHES TOO HARD HE WARNS THE JAPANESE MAY SEEK CLOSER TIES WITH CHINA EAST ASIA AND RUSSIA WE SHOULDN'T BE ARROGANT OR CONDESCENDING OR DOMINEERING SAYS THE FORMER SENATE MAJORITY LEADER WHO NOW ADVISES GOLDMAN SACHS & CO FRED BERGSTEN DIRECTOR OF THE INSTITUTE FOR INTERNATIONAL ECONOMICS ALSO FEARS THE JAPANESE COULD FEEL PUSHED TO THE WALL THERE IS THE DANGER OF A CONFRONTATION ARISING IN WHICH CAPITULATION WOULD BE TOO DISHONORABLE FOR JAPAN TO CONTEMPLATE THE CLINTON ADVISERS CONCEDE THAT THEY AREN'T EXPERTS IN THE NUANCES OF JAPAN'S PSYCHOLOGY NONE HAVE LIVED THERE OR SPEAK THE LANGUAGE THOUGH THEY CONSIDER THEMSELVES STUDENTS OF JAPANESE BUSINESS DEALINGS AND THEY BELIEVE THAT PRESSURE PAYS OFF THEY FREQUENTLY CITE TOYS R US INC'S FOURYEAR PUSH TO CRACK THE JAPANESE RETAIL MARKET LONG DOMINATED BY SMALL INEFFICIENT STORES THE US PRESSED JAPAN TO REPEAL DISCRIMINATORY LAWS AND TOYS R US QUICKLY SET UP SIX BIG DISCOUNT TOY STORES THAT UNDERCUT LOCAL PRICES BY 20 NOW BLOCKBUSTER ENTERTAINMENT CORP AND MTS INC'S TOWER RECORDS PLAN TO EXPAND IN JAPAN WHILE OTHER BIG US RETAILERS ARE CONSIDERING SIMILAR MOVES THE US TEAM IS WORKING ON IDEAS JAPAN MIGHT ADOPT TO INCREASE FOREIGN INVESTMENT SUCH AS CHANGING ITS PATENT LAWS TO ENCOURAGE US COMPANIES TO SWAP TECHNOLOGY WITH JAPANESE FIRMS OR PROVIDING CUTRATE LEASES FOR US FIRMS EXPLORING INVESTMENTS THERE POINTING TO THE TOYS R US SUCCESS MR CUTTER SAYS IF YOU GET GREAT AMERICAN BUSINESSES INTO JAPAN IN AREAS WHERE THE JAPANESE ECONOMY DOESN'T FUNCTION AS WELL AS OURS THEY'LL CHANGE THE ECONOMY MR CUTTER A TALL QUIET 50YEAROLD FORMER RHODES SCHOLAR COUNTS HIMSELF AS A FAN OF JAPANESE MANAGEMENT AT COOPERS & LYBRAND HE MADE SEVEN TRIPS TO JAPAN BROUGHT JAPANESE EXPERTS TO THE US AND PUSHED CLIENTS TO ADOPT JAPANESE LEAN MANUFACTURING HE EVEN RUNS THE TASK FORCE IN A JAPANESE STYLE WITH ENDLESS MEETINGS IN SEARCH OF CONSENSUS HE INSISTED THAT ONE 10HOUR MEETING BE HELD AT A PENTAGON CONFERENCE ROOM SO PARTICIPANTS COULDN'T EASILY ESCAPE TO THEIR OFFICES ONCE WE REACHED A CONSENSUS WE ALL AGREED TO DEFEND IT SAYS ONE PARTICIPANT THAT WOULD BE A BIG CHANGE FROM THE PAST WHEN JAPANESE NEGOTIATORS ROUTINELY EXPLOITED DIFFERENCES AMONG US AGENCIES DURING TOKYO TALKS ON CONSTRUCTION CONTRACTS THE COMMERCE DEPARTMENT'S NEGOTIATOR MICHAEL FARREN PLOTTED SEPARATE STRATEGIES FOR DEALING WITH JAPAN AND THE STATE DEPARTMENT ONCE HE QUICKLY CALLED A PRESS CONFERENCE TO REJECT A JAPANESE OFFER JUST HOURS BEFORE STATE INSTRUCTED HIM TO ACCEPT IT SORRY HE TOLD WASHINGTON HE HAD ALREADY SAID NO THAT AIN'T GOING TO HAPPEN THIS TIME VOWS ROBERT RUBIN WHO HEADS THE NATIONAL ECONOMIC COUNCIL DIFFERENCES DO REMAIN MRS SPERO FAVORS BUILDING ALLIANCES WITH JAPANESE CONSUMERS AND BUSINESS GROUPS THAT WOULD BENEFIT FROM MORE FOREIGN COMPETITION TASK FORCE MEMBERS SAY HER FORMER BOSS AT AMERICAN EXPRESS JAMES ROBINSON ONCE SENT A NEW YORK SUPERMARKET AD TO THE HEAD OF JAPAN'S BUSINESS LOBBY THE KEIDANREN TO SHOW HIM HOW MUCH TRADE BARRIERS WERE COSTING JAPANESE CONSUMERS BUT MR KANTOR SAYS THAT TACTIC ALSO PURSUED BY THE BUSH TEAM IS A LOSER WE MADE NO PROGRESSZERO PROGRESS NONE HE SAYS BUSINESS EXPERIENCES CLEARLY COLOR THE VIEWS OF THE JAPAN ADVISERS THE TREASURY'S MR ALTMAN HELPED BROKER SOME OF JAPAN'S LARGEST ACQUISITIONS OF US COMPANIES MR RUBIN WHOSE FORMER FIRM GOLDMAN SACHS SOLD A 125 STAKE TO SUMITOMO BANK LTD OF JAPAN SAYS THE MORE SOPHISTICATED YOU ARE ABOUT JAPAN THE MORE YOU'RE LIKELY TO APPRECIATE THE ENORMOUS DIFFICULTY OF GETTING REAL MARKET ACCESS THERE MRS SPERO REMEMBERS AMERICAN EXPRESS'S TORTUOUS EXPANSION INTO JAPAN EARLY ON JAPAN'S CREDITCARD ASSOCIATION WHICH WIELDED KEY POWER IN THE INDUSTRY WOULDN'T LET AMERICAN EXPRESS JOIN WHEN THE COMPANY FINALLY WAS ADMITTED POWER SHIFTED TO AN EXECUTIVE COMMITTEE WHEN AMERICAN EXPRESS WON A SEAT ON THAT PANEL POWER SHIFTED AGAIN TO INFORMAL GROUPS THAT WOULD MEET ON THE GOLF COURSE SAYS A FORMER COMPANY OFFICIAL THEY WERE ALWAYS ONE STEP AHEAD OF YOU GIVEN THAT BACKGROUND MRS SPERO HAS PUSHED TO INCLUDE FINANCIAL SERVICES IN THE TALKS THE US PLANS TO PRESS JAPAN TO OPEN ITS MUTUALFUND AND UNDERWRITING BUSINESSES BY MEASURING HOW MUCH OF THOSE MARKETS ARE OPEN TO FOREIGNERS FINDING DEALERS FOR MR CUTTER A BIG ISSUE IS DISTRIBUTION HE SAYS SOME OF HIS BIGGEST CLIENTS INCLUDING AUTOMOTIVE AND TELECOMMUNICATIONS COMPANIES GAVE UP ON JAPAN BECAUSE THEY COULDN'T FIND JAPANESE DEALERS WHO WOULD CARRY US PRODUCTS DEALERS THAT DARED WOULD GET RETALIATED AGAINSTTHEY WOULDN'T GET THE LATEST MODELS FROM THEIR JAPANESE SUPPLIERS HE SAYS HIS SOLUTION GET JAPAN TO TRACK THE NUMBER OF DEALERS CARRYING FOREIGN PRODUCTS AND REQUIRE IMPROVEMENT RIGHT NOW MR CUTTER FIGURES 100 TIMES AS MANY US OUTLETS CARRY JAPANESE GOODS AS JAPANESE OUTLETS CARRY US GOODS PROBABLY THE BIGGEST SURPRISE IN THE GROUP WAS THE ROLE OF MS TYSON THE CHIEF WHITE HOUSE ECONOMIST IN HER WRITING SHE PROVIDED THE RATIONALE BEHIND THE SEMICONDUCTOR AGREEMENT WITH ITS 20 QUOTA FOR FOREIGN COMPANIES BUT IN MEETINGS SHE HAS WARNED THAT QUOTAS CAN ALSO BE USED TO LIMIT FUTURE GROWTH OF US PRODUCTS STRENGTHEN THE JAPANESE BUREAUCRACY RESPONSIBLE FOR THEM AND LEAD TO PRICE INCREASES AT HER URGING THE TASK FORCE AGREED TO USE A VARIETY OF MEASUREMENTS TO SEE WHETHER JAPANESE MARKETS ARE GETTING MORE OPEN STILL MS TYSON IS HARDLY READY TO GIVE UP ON ANOTHER SEMICONDUCTORSTYLE ARRANGEMENT THE FACT THAT JAPAN IS SO OUTSPOKEN IN ITS UNWILLINGNESS TO GO ALONG DEMONSTRATES THAT JAPAN VIEWS THE CHIP ACCORD AS A SUCCESS TO THE US AND COSTLY TO THEM SHE ARGUES THAT'S A PRETTY STRONG ARGUMENT IN ITS FAVOR 9306080156 930608 TECHNOLOGY & HEALTH STUDY SAYS EMPLOYERS CAN SLASH COSTS ON JOBRELATED INJURIES THROUGH HMOS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL EMPLOYERS CAN REDUCE TREATMENT COSTS FOR JOBRELATED INJURIES BY NEARLY 40 IF THEY SEND WORKERS TO HEALTH MAINTENANCE ORGANIZATIONS RATHER THAN LET WORKERS CHOOSE THEIR OWN DOCTORS A NEW STUDY SHOWS THE FINDINGS COULD EASE PRESSURE TO INCLUDE OCCUPATIONAL INJURIES AS PART OF NATIONAL HEALTHCARE REFORM BUT CRITICS DENOUNCED THE RESULTS AS TOO DRAMATIC TO BE BELIEVED WORKERS COMPENSATION PAYS FOR MEDICAL CARE OF EMPLOYEES INJURED ON THE JOB AND REIMBURSES THEM FOR LOST WAGES FOR THE PAST DECADE THE MEDICAL COSTS OF WORKERS COMPENSATION NOW ABOUT 20 BILLION A YEAR HAVE BEEN SOARING FASTER THAN HEALTHCARE COSTS IN GENERAL CORPORATIONS HAVE BEEN LOOKING FOR WAYS TO REDUCE THEIR WORKERS COMPENSATION EXPENSES AND INSURANCE COMPANIES HAVE IN RECENT YEARS BEEN PUSHING MANAGED CARE NETWORKS SUCH AS HEALTH MAINTENANCE AND PREFERRED PROVIDER ORGANIZATIONS AS THE SOLUTION ABOUT HALF OF THE STATES IN THE US ALLOW WORKERS TO GO TO A DOCTOR OF THEIR OWN CHOOSING BUT THE REST GIVE EMPLOYERS AT LEAST PARTIAL RIGHTS TO DIRECT A WORKER TO AN HMO OR SOME OTHER TREATMENT METHOD OF THEIR CHOOSING THE REPORT BY THE SEATTLE ACTUARIAL CONSULTING FIRM MILLIMAN & ROBERTSON WAS BASED ON A 13MONTH ANALYSIS OF AN HMO THAT HANDLED OCCUPATIONAL INJURIES FOR 17000 FLORIDA STATE EMPLOYEES IT IS BELIEVED TO BE THE FIRST STUDY OF ITS KIND AFTER ACCOUNTING FOR DIFFERENCES IN ADMINISTRATIVE COSTS MILLIMAN FOUND THAT THE HMO CHARGED 385 LESS FOR TREATING OCCUPATIONAL INJURIES THAN TRADITIONAL METHODS OF CARE IN AN HMO PATIENTS CHOOSE FROM DOCTORS WHO BELONG TO THE ORGANIZATION THE HMO CAN SAVE EMPLOYERS MONEY OVER TRADITIONAL CARE BECAUSE DOCTORS ARE GIVEN INCENTIVES TO HOLD DOWN COSTS AND COSTLY PROCEDURES ARE REVIEWED TO MAKE SURE THEY ARE NECESSARY HMOS ALSO SAVE MONEY BY WINNING VOLUME DISCOUNTS FROM DOCTORS AND HOSPITALS IN RETURN FOR THE HMO DELIVERING A LARGE NUMBER OF PATIENTS THE HMO STUDIED CAC RAMSEY WHICH IS OWNED BY RAMSAYHMO INC OF CORAL GABLES FLA IS PARTLY A STAFF MODEL OPERATION MEANING DOCTORS ARE EMPLOYEES OF THE HMO AND WORK IN THE SAME BUILDING BECAUSE THE ENTIRE OPERATION IS UNDER THE SAME ROOF STAFF MODEL HMOS CAN KEEP A TIGHTER REIN OVER MEDICAL PROCEDURES THAN HMOS THAT ALLOW DOCTORS TO KEEP THEIR OWN OFFICES THE SAVINGS WERE LARGER THAN I EXPECTED SAID DAVID APPEL AN AUTHOR OF THE REPORT THE FINDINGS PROVOKED AN OUTCRY FROM ORGANIZED LABOR WHICH IS FIGHTING TO PRESERVE THE RIGHT OF INJURED WORKERS TO CHOOSE THEIR OWN DOCTORS THIS IS DIFFICULT TO BELIEVE SAID JAMES ELLENBERGER ASSISTANT DIRECTOR OF THE AFLCIO IN WASHINGTON HE CITED OTHER STUDIES THAT SHOW COSTS ARE CHEAPER IN STATES WHERE WORKERS GET TO CHOOSE THEIR OWN PHYSICIANS HE SAID MILLIMAN & ROBERTSON WAS PLAYING INTO THE HANDS OF THE INSURANCE INDUSTRY A CLAIM MR APPEL DENIED THIS STUDY COULD EASILY BE USED BY STATES TO FORCE INSURERS TO CUT THEIR RATES MR APPEL SAID THE CLINTON ADMINISTRATION'S HEALTHCARE PLAN IS EXPECTED TO STRIP THE TREATMENT OF OCCUPATIONAL INJURIES OUT OF THE WORKERS COMPENSATION ENVIRONMENT AND FOLD IT INTO A GENERAL HEALTHCARE SETTING THAT WOULD MEAN HEALTH INSURANCE RATHER THAN WORKERS COMPENSATION INSURANCE WOULD PAY FOR TREATING INJURED WORKERS ONE MOTIVATION WOULD BE TO REIN IN THE HIGH WORKERS COMPENSATION COSTS WHICH ARE A BURDEN FOR BUSINESS THE MILLIMAN FINDINGS SHOW THAT THERE MAY BE A WAY THE WORKERS COMPENSATION SYSTEM CAN ADAPT WITHOUT HAVING TO STRIP OUT MEDICAL COSTS MR APPEL SAID MANAGED CARE IS ALREADY A MAJOR PRESENCE IN WORKERS COMPENSATION ABOUT HALF THE MONEY TRAVELERS CORP PAYS FOR WORKERS COMPENSATION MEDICAL CLAIMS PASSES THROUGH ITS MANAGED CARE NETWORKS AND THE PERCENTAGE IS GROWING SAID RICHARD PALCZYNSKI A TRAVELERS SENIOR VICE PRESIDENT MANAGED CARE WOULD BE EVEN MORE WIDESPREAD IF NOT FOR PROHIBITIONS IN SOME STATES STATE LAWS ARE THE OBSTACLES BUT THEY ARE GETTING BETTER SAID TOM CHAPMAN OF KEMPER NATIONAL INSURANCE COS OF LONG GROVE ILL 9306080155 930608 CORPORATE FOCUS SAFETYKLEEN HOPING TO CLEAN UP ON SPENDING SPREE REGULATORY THICKET DELAYS BIG PAYOFF FOR ENVIRONMENTAL SERVICES FIRM BY JEFF BAILEY STAFF REPORTER OF THE WALL STREET JOURNAL ELGIN ILL SAFETYKLEEN CORP ARMED WITH A VISION OF ITS FUTURE HAS BEEN ON A MISSION FOR THE PAST FIVE YEARS IT HAS SPENT ABOUT 700 MILLION TO BUILD A NETWORK OF SITES TO HANDLE HAZARDOUS WASTES FROM SMALL TO MEDIUMSIZED BUSINESSES BUT THERE'S BEEN A HITCH THE FUTURE HAS BEEN LATE IN ARRIVING AND THAT'S DELAYED ANY BIG PAYOFF FROM SAFETYKLEEN'S CAPITAL SPENDING SPREE WHICH HAS KNOCKED THE COMPANY'S STOCK DOWN TO 17625 FROM ITS 1991 RECORD HIGH OF 37875 AND SLASHED MORE THAN 1 BILLION FROM ITS STOCK MARKET VALUE SAFETYKLEEN'S TROUBLES ILLUSTRATE SOME OF THE VAGARIES FACING THE ENTIRE ENVIRONMENTAL SERVICES INDUSTRY GOVERNMENT REGULATION CREATES MOST OF THE OPPORTUNITIES BUT GETTING OUT TOO FAR AHEAD OF REGULATION CAN SADDLE A COMPANY WITH HIGHER COSTS THAN THE COMPETITION SAFETYKLEEN BUILT A BIG REFINERY IN INDIANA TO RECYCLE USED MOTOR OIL BUT USED OIL HASN'T BEEN REGULATED AS TIGHTLY AS SAFETYKLEEN HAD HOPED WITH OPPORTUNITY FROM REGULATION COMES MORE GOVERNMENT SCRUTINY SAFETYKLEEN'S PUERTO RICAN BUSINESS WHICH TURNED A PROFIT OF 57 MILLION IN 1991 HAD A 9 MILLION LOSS LAST YEAR AFTER THE COMPANY WAS CAUGHT STORING HUGE AMOUNTS OF HAZARDOUS WASTES IN VIOLATION OF ITS PERMITS IN ADDITION DONALD W BRINCKMAN THE COMPANY'S 62YEAROLD CHAIRMAN AND CHIEF EXECUTIVE HAS HAD TO DEAL WITH MANAGEMENT SUCCESSION THIS PAST YEAR HIS CHOSEN SUCCESSOR JOSEPH F KNOTT DIED OF A HEART ATTACK IN DECEMBER 1991 AT AGE 55 AFTER A LONG SEARCH THE COMPANY LAST MONTH NAMED 52YEAROLD JOHN G JOHNSON JR A FORMER SENIOR VICE PRESIDENT AT ARCO CHEMICAL CO AS PRESIDENT AND CHIEF OPERATING OFFICER ALSO RECRUITED TO HANDLE INCREASINGLY DIFFICULT REGULATORY MATTERS WAS F HENRY HABICHT II FORMER DEPUTY ADMINISTRATOR OF THE ENVIRONMENTAL PROTECTION AGENCY HE WAS NAMED SENIOR VICE PRESIDENT IN CHARGE OF STRATEGIC AND ENVIRONMENTAL PLANNING WITH THE NEW TEAM IN PLACE AND SAFETYKLEEN'S CAPITAL INVESTMENT NEEDS EBBING MR BRINCKMAN SAYS THE COMPANY IS POSITIONED TO RESUME ITS RECORD UNBROKEN BETWEEN 1972 AND 1988 OF 20AYEAR EARNINGS GROWTH WE THINK WE CAN GO BACK TO THAT SAYS MR BRINCKMAN WHO HAS RUN THE COMPANY SINCE 1968 WHEN REVENUE WAS A PALTRY 100000 HIGHER PROFITS AND SCALEDBACK CAPITAL SPENDNG WOULD HELP THE COMPANY PARE ITS DEBT WHICH HAS INCREASED FIVEFOLD SINCE 1988 TO 300 MILLION BUT SOME BIG OBSTACLES REMAIN PRESIDENT CLINTON'S EPA CHIEF CAROL M BROWNER INDICATED IN MAY THAT SHE WOULD BE A TOUGHER REGULATOR OF HAZARDOUSWASTE INCINERATORS AND THE INDUSTRIAL BOILERS AND CEMENT KILNS THAT ALSO BURN SUCH WASTES AFTER RECYCLING SOLVENTS SAFETYKLEEN SENDS LARGE VOLUMES OF WASTES TO SUCH SITES ALREADY ITS DISPOSAL COSTS HAVE RISEN AS SOME BOILERS AND KILNS HAVE FAILED TO MEET STRICTER STANDARDS THE PUERTO RICO LOSSES OCCURRED AFTER A CEMENT KILN THERE COULDN'T HANDLE SAFETYKLEEN'S WASTES WHICH THEN PILED UP IN THE MEANTIME SHIPPING WASTES TO THE MAINLAND HAS BEEN EXPENSIVE THE COMPANY HOPES THE KILN WILL BE OPERATING AT FULL TILT BY THIS FALL ACCORDING TO SAFETYKLEEN'S 1993 PROXY STATEMENT ITS BOARD FELT THAT THE PUERTO RICO PROBLEM WAS ISOLATED THE FINANCIAL CONSEQUENCES WERE THROWN OUT IN COMPUTING 1992 EXECUTIVES BONUSES ALLOWING MR BRINCKMAN TO POCKET A BONUS OF 190021 ON TOP OF HIS 404109 SALARY BUT ENVIRONMENTAL VIOLATIONS REMAIN COSTLY ALREADY THIS YEAR SAFETYKLEEN AGREED TO PAY 2 MILLION IN PENALTIES IN A KENTUCKY CASE AND 227925 IN AN OHIO CASE WE FEEL WE'RE THE SOLUTION MR BRINCKMAN SAYS BUT WE'RE LOOKED AT AS THE PROBLEM AS OF THE FIRST OF THE YEAR THE COMPANY SAYS IT FACED 10 GOVERNMENT ENFORCEMENT ACTIONS THAT COULD LEAD TO PENALTIES OF MORE THAN 100000 EACH IT WON'T ELABORATE ON THE ALLEGED VIOLATIONS BUT TREASURER LAURENCE M RUDNICK SAYS THAT FROM A FINANCIAL POINT OF VIEW THERE ARE NO PUERTO RICOS OR KENTUCKYS GOING ON RIGHT NOW MEANWHILE GROWTH HAS STALLED IN THE COMPANY'S CORE PARTSCLEANER BUSINESS SAFETYKLEEN DISTRIBUTES TO GAS STATIONS AND OTHER AUTOMOTIVE OUTLETS A SINKONTOPOFADRUM THAT RECIRCULATES SOLVENT TO CLEAN GREASY PARTS AND TOOLS WHEN THE SOLVENT BECOMES TOO DIRTY ONE OF THE COMPANY'S 2600 YELLOW VANS BRINGS CLEAN SOLVENT THE NUMBER OF MACHINES IN SERVICE HAS REMAINED FLAT IN RECENT MONTHS WHILE CUSTOMERS ARE CALLING LESS FREQUENTLY FOR CLEAN SOLVENT THAT CONTRIBUTED TO AN UGLY FIRST QUARTER WHEN PROFIT SLID 44 SAYS DOUGLAS R AUGENTHALER AN ANALYST AT OPPENHEIMER & CO IN NEW YORK AN IMPROVED LONGTERM PERFORMANCE WILL REQUIRE THE REVERSAL OF SOME BASIC TRENDS IN THE PARTSWASHER OPERATIONS HE SAYS THE SLOW ECONOMY IS PARTLY TO BLAME SAFETYKLEEN SAYS WITH BUSINESS DOWN AT MANY SERVICE STATIONS A RECENT PRICE INCREASE ALSO HURT AND BECAUSE THE DIRTY SOLVENT IS CLASSIFIED AS A HAZARDOUS WASTE SOME CUSTOMERS ARE CUTTING BACK BECAUSE OF POTENTIAL REGULATORY AND LEGAL LIABILITY TO DEAL WITH THAT LAST CONCERN SAFETYKLEEN IS INTRODUCING ITS FIRST PARTSCLEANER INNOVATION IN 24 YEARS A DRUM THAT FILTERS THE SOLVENT SO THAT NEW SOLVENT IS REQUIRED LESS OFTEN ALSO A NEW TYPE OF SOLVENT THAT ISN'T CLASSIFIED AS A HAZARDOUS WASTE IS BEING OFFERED THAT COULD HELP THE COMPANY HANG ONTO SOME CUSTOMERS BUT KENNETH CH'UANK'AI LEUNG AN ANALYST AT SMITH BARNEY HARRIS UPHAM & CO WORRIES THAT PROFITS WILL DECLINE THEY MAKE THEIR MONEY ON SOLVENT HE SAYS NOTING THAT SAFETYKLEEN PAYS 1 TO 110 A GALLON FOR NEW SOLVENT AND CHARGES ROUGHLY 5 A GALLON THE COMPANY CONFIRMS ITS COST FIGURES BUT SAYS ITS PRICES TO CUSTOMERS INCLUDE SERVICE FEATURES BEYOND CHANGING THE SOLVENT IT EXPECTS PROFIT MARGINS FROM THE NEW MACHINES TO BE ABOUT THE SAME AS EXISTING ONES SAFETYKLEEN IS ALSO EXPLORING HANDLING WASTES FROM PHOTOGRAPHIC AND XRAY LABS WHICH IT ESTIMATES COULD BE A 200 MILLIONTO400 MILLION A YEAR BUSINESS MUCH OF SUCH FLUID NOW GOES DOWN THE DRAIN BUT REGULATIONS CONCERNING DISPOSAL OF THE FLUIDS WHICH CONTAIN SILVER VARY WIDELY THE SUCCESS OF THAT BUSINESS WILL DEPEND ON ENFORCEMENT OF THE REGULATIONS SAYS MR RUDNICK THE TREASURER THIS AND OTHER POTENTIAL NEW MARKETS WOULD ALLOW SAFETYKLEEN TO RUN MORE BUSINESS THROUGH ITS NETWORK OF ABOUT 280 BRANCHES WHICH SEND OUT TRUCKS TO COLLECT WASTES WE HAVE THE ASSETS IN PLACE TO SPUR A LOT OF GROWTH MR BRINCKMAN SAYS 9306080153 930608 INTERNATIONAL ZURICH AREA CONSUMER PRICES ZURICH THE ZURICH AREA CONSUMER PRICE INDEX ROSE 02 IN MAY FROM APRIL AND INCREASED 41 YEAR TO YEAR THE LOCAL STATISTICS OFFICE ANNOUNCED IN APRIL THE MONTHTOMONTH RISE WAS 02 AND THE YEARTOYEAR INCREASE 43 IN MAY 1992 THE INCREASES WERE 04 MONTH TO MONTH AND 44 YEAR TO YEAR 9306080152 930608 TECHNOLOGY & HEALTH AIDS RESEARCHER OUTLINES NEW CONCEPT OF SELECTIVELY BOOSTING IMMUNE SYSTEM BY MARILYN CHASE STAFF REPORTER OF THE WALL STREET JOURNAL BERLIN ADDRESSING A CENTRAL PARADOX OF THE AIDS EPIDEMIC US RESEARCHER ANTHONY S FAUCI OUTLINED A NEW FRAMEWORK FOR ATTACKING THE DISEASE AIDS IS CAUSED BY THE HUMAN IMMUNODEFICIENCY VIRUS WHICH TRIGGERS THE COLLAPSE OF THE IMMUNE DEFENSE SYSTEM AND DEATH DUE TO RELENTLESS INFECTIONS OR CANCER BUT IN A SEEMING CONTRADICTION HIV MAY ALSO TRIGGER HYPERACTIVE OR SOCALLED AUTOIMMUNE REACTIONS IN WHICH THE BODY'S DEFENSE SYSTEM ATTACKS ITSELF THUS INSTEAD OF SIMPLY REBUILDING THE BODY'S IMMUNE SYSTEM DR FAUCI PROPOSED THAT DOCTORS SEEK NEW DRUGS THAT WOULD SELECTIVELY STRENGTHEN GOOD SOLDIERS WITHIN THE IMMUNESYSTEM ARMY WHILE QUIETING DOWN ROGUE ELEMENTS THAT STAGE A KIND OF BIOLOGICAL MUTINY IMMUNE RESPONSES ARE PART OF A VIGOROUS DEFENSE AGAINST AIDS BUT THEY CAN ALSO ENHANCE AIDS HE SAID DR FAUCI DIRECTOR OF THE NATIONAL INSTITUTE OF ALLERGY AND INFECTIOUS DISEASES A UNIT OF THE NATIONAL INSTITUTES OF HEALTH MADE HIS COMMENTS IN AN ADDRESS HERE AT THE NINTH INTERNATIONAL CONFERENCE ON AIDS DR FAUCI'S NEW CONCEPTS PLAY AGAINST A BACKDROP OF DISILLUSIONMENT WITH THE REIGNING ANTIVIRAL DRUG WELLCOME PLC'S AZT WHOSE BENEFITS DWINDLE AFTER TWO YEARS MOREOVER AN ANGLOFRENCH RESEARCH TEAM HAS ATTACKED AZT'S WIDESPREAD USE IN EARLY TREATMENT OF INFECTED PEOPLE BEFORE FULLBLOWN AIDS DEVELOPS BUT DR FAUCI STRESSED HIS FOCUS ON CALIBRATING THE IMMUNE SYSTEM DOESN'T LEND SUPPORT TO BERKELEY CALIF SCIENTIST PETER DUESBERG DR DUESBERG HAS SPARKED CONTROVERSY WITH A PROVOCATIVE THEORY THAT HIV ISN'T THE MAIN CULPRIT IN AIDS AT ALL BUT RATHER THAT DRUGS LIFESTYLES OR OTHER MICROBES ARE TO BLAME WE STILL DON'T UNDERSTAND HOW THE VIRUS DESTROYS THE IMMUNE SYSTEM BUT YOU'VE GOT TO HAVE THE VIRUS DR FAUCI MAINTAINED LAY ASIDE ANY THOUGHT THAT HIV ISN'T NECESSARY IN CAUSING AIDS HE ADDED YOU CAN'T JUST GIVE SOMEONE AN IMMUNE ENHANCER YOU'VE GOT TO SUPPRESS THE VIRUS AS WELL HAND IN HAND WITH IMPROVED ANTIVIRAL DRUGS DR FAUCI URGED RESEARCHERS TO INVESTIGATE NEW IMMUNE SYSTEMMODULATORS THAT EXPLOIT RECENT DISCOVERIES ABOUT THE MYSTERIOUS PHASES OF AIDS'S DESTRUCTION OF THE BODY IN THE EARLY STAGE OF AIDS WHILE PATIENTS FEEL HEALTHY DR FAUCI FOUND THE VIRUS REPRODUCES FURIOUSLY BUT STAYS DEEP INSIDE THE LYMPH NODES WITHOUT SPILLING OVER INTO THE BLOOD IN THE MIDDLE PHASE AIDS STARTS DESTROYING ITS HIDEAWAY IN THE LYMPH NODES AND PATIENTS BEGIN TO DECLINE IN THE FINAL STAGE LYMPH NODES DETERIORATE COMPLETELY AND THE VIRUS OVERFLOWS INTO THE BLOOD WHILE IMMUNE CELLS PLUNGE AT THE SAME TIME DR FAUCI NOTED THAT HIV OR OTHER INVADERS CAN MORE EASILY INFECT IMMUNE CELLS THAT ARE ACTIVATED THUS SUBVERTING IMMUNE REACTIONS TO FAVOR THE VIRUS'S SPREAD RELEASE OF CERTAIN NORMALLY HELPFUL PROTEINS AND ANTIBODIES MAY BE USED BY THE VIRUS TO WREAK ITS HAVOC ENDING IN MASS CELL DEATH TO BOOST THE GOOD DEFENSES OF THE IMMUNE SYSTEM DR FAUCI SAID HE IS TESTING THE IMMUNE BOOSTING PROTEIN IL2 CURRENTLY SOLD BY CETUS CORP FOR KIDNEY CANCER IN A PILOT STUDY OF EIGHT PATIENTS HE SAID IL2 TAKEN IN CONJUNCTION WITH AN ANTIVIRAL DRUG BOOSTED LEVELS OF IMMUNE CELLS KNOWN AS TCELLS TO DAMP POTENTIALLY SELFDESTRUCTIVE POWERS OF THE IMMUNE SYSTEM DR FAUCI SAID HE IS EAGER TO SEEK DRUGS THAT BLOCK CERTAIN NATURAL PROTEINS BELIEVED TO HAVE A ROLE IN ACCELERATING VIRUS REPLICATION TRYING TO TWEAK THE IMMUNE SYSTEM TO KEEP HIV INFECTION DAMPED DOWN IS A PERFECTLY REASONABLE IDEA BRITISH CANCER RESEARCHER ROBIN WEISS SAID YESTERDAY BUT I DON'T THINK WE'VE GOT GOOD SCIENTIFIC IDEAS HOW TO DO THAT YET IT IS MAINLY A CONCEPT DR FAUCI ACKNOWLEDGED I'M MAKING A PLEA TO KEEP AN OPEN MIND 9306080151 930608 INTERNATIONAL DUTCH INDUSTRIAL SALES AMSTERDAM INDUSTRIAL SALES IN THE NETHERLANDS SHOWED AN ACCELERATED DECLINE IN THE FIRST QUARTER SLIPPING 25 FROM A YEAR EARLIER THAT DECLINE REFLECTS THE DOWNWARD TREND IN THE DUTCH ECONOMY IN GENERAL OVER THE SAME PERIOD AND SUPPORTS INDICATIONS THAT THE NETHERLANDS IS SLIPPING INTO A RECESSION THE DATA FROM THE HAGUEBASED CENTRAL BUREAU FOR STATISTICS INDICATE THE THIRD CONSECUTIVE QUARTER OF DECLINING SALES ON A YEARTOYEAR BASIS LAST YEAR DECLINES OF 1 WERE POSTED FOR THE THIRD AND FOURTH QUARTERS COMPARED WITH SIMILAR REPORTING PERIODS A YEAR EARLIER 9306080150 930608 PARKER & PARSLEY WINS OIL PARTNERSHIPS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS IN PRUDENTIAL SECURITIES INC'S 35 SOURED ENERGY PARTNERSHIPS EFFECTIVELY WILL RECEIVE 79 CENTS ON THE DOLLAR UNDER A SALE AGREEMENT REACHED WITH PARKER & PARSLEY PETROLEUM CO PARKER & PARSLEY AN INDEPENDENT OIL AND GAS COMPANY YESTERDAY WON A FOURWEEK BIDDING WAR TO BUY PRUDENTIAL'S ENERGYINCOME PARTNERSHIPS THE MIDLAND TEXAS OIL COMPANY BOOSTED ITS OFFER TO LIMITED PARTNERSHIP INVESTORS BY 42 MILLION TO 491 MILLION BEATING OUT A RIVAL OFFER BY LOUIS DREYFUS NATURAL GAS CORP PARKER & PARSLEY ALSO SETTLED A SUIT FILED AGAINST DREYFUS A UNIT OF FRANCE'S LOUIS DREYFUS GROUP BY AGREEING TO SELL DREYFUS CERTAIN OIL AND GAS PROPERTIES FOR 157 MILLION IN RETURN FOR DREYFUS'S DROPPING ITS BID FOR THE PARTNERSHIPS THE NET WINNERS ARE PROBABLY THE INVESTORS SAID HERBERT C WILLIAMSON III PARKER & PARSLEY'S VICE CHAIRMAN THEY HAVE GOTTEN ALL THERE IS TO GET THAT'S NOT TO SAY THAT PRUDENTIAL'S 130000 ENERGY PARTNERSHIP INVESTORS ARE JOYOUS THE INVESTORS HAVE A PENDING CLASSACTION SUIT AGAINST THE UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA IN A NEW ORLEANS FEDERAL COURT ALLEGING THAT PRUDENTIAL MISLED THEM ON THE PARTNERSHIPS' RISK AND RETURNS THE INVESTORS LOST ABOUT HALF THE 145 BILLION THEY PUT INTO THE PARTNERSHIPS BETWEEN 1983 AND 1990 STILL APPROVAL OF THE PARKER & PARSLEY OFFER MEANS INVESTORS WILL RECEIVE ABOUT 115 BILLION OF THEIR ORIGINAL INVESTMENT THIS INCLUDES ABOUT 655 MILLION THAT PRUDENTIAL ALREADY HAS PAID OUT IN DISTRIBUTIONS TO PARTNERSHIP INVESTORS PRUDENTIALBACHE ENERGY PRODUCTION INC A PRUDENTIAL SECURITIES UNIT AND GENERAL PARTNER RECOMMENDED THAT PARTNERSHIP INVESTORS APPROVE THE REVISED PARKER & PARSLEY OFFER WHICH WILL EXPIRE ON JUNE 21 AS OF FRIDAY PARKER & PARSLEY HAD RECEIVED ABOUT 21 OF THE TENDERS NECESSARY TO APPROVE ITS BID INVESTORS WHO ALREADY HAVE TENDERED THEIR PARTNERSHIP UNITS WILL RECEIVE THE HIGHER PRICE WALL STREET CHEERED THE TRANSACTION SHARES OF PARKER & PARSLEY SOARED 275 A SHARE OR 10 TO 30125 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING AN APPARENT BIDDING WAR ERUPTED FOR THE PARTNERSHIPS IN MAY WHEN IT WAS DISCLOSED THAT DREYFUS MADE A 510 MILLION BID THREE DAYS BEFORE PRUDENTIAL AGREED TO SELL THEM TO PARKER & PARSLEY FOR 4483 MILLION PARKER & PARSLEY ALLEGED IN ITS SUIT THAT DREYFUS MALICIOUSLY INTERFERED WITH ITS BID TO BUY THE PARTNERSHIPS AND SOUGHT 500 MILLION IN DAMAGES DREYFUS WHICH ISN'T RELATED TO DREYFUS CORP THE BIG MONEYMANAGEMENT FIRM HAD HIT SNAGS IN LINING UP FINANCING FOR ITS 510 MILLION BID PEOPLE FAMILIAR WITH THE MATTER SAID BUT LOUIS DREYFUS PRESIDENT SAID IN AN INTERVIEW THAT THE COMPANY HAD THE NORMAL DIFFICULTY OF GETTING FINANCING OF ORGANIZING IT BUT IT WAS MOSTLY A QUESTION OF TIME BECAUSE THE BANKS HAD TO REVIEW THE MATTER FROM SCRATCH THE REVISED PARKER & PARSLEY OFFER IS NOW THE EQUIVALENT OF THE PROPOSED PRICE INDICATED BY DREYFUS OVER THE PAST FEW WEEKS JAMES M KELSO PRUBACHE ENERGY PRESIDENT SAID THE SALE HE ADDED ELIMINATES UNCERTAINTIES ASSOCIATED WITH COMPETING BIDS BECAUSE OF THE RELATED LITIGATION WITH LOUIS DREYFUS THE SALE AGREEMENT DOESN'T AFFECT THE CLASSACTION SUIT AGAINST PRUDENTIAL BUT IT DOES PAVE THE WAY FOR PRUDENTIAL TO SUBMIT A REVISED SETTLEMENT OFFER TO INVESTORS PRUDENTIAL HAS WITHDRAWN ITS ORIGINAL SETTLEMENT WHICH INCLUDED 37 MILLION IN CASH AND PARTNERSHIP INTERESTS IN A REVISED FORM AMID PROTESTS FROM PLAINTIFF ATTORNEYS THESE ATTORNEYS ARE DEMANDING THAT THEIR CLIENTS RECEIVE FAR MORE THAN THE 145 BILLION BECAUSE THEY SAY INVESTORS STILL LOST THE INTEREST THEY WOULD HAVE EARNED DURING THE TIME THEY OWNED THE PARTNERSHIPS PARKER & PARSLEY'S BID ACTUALLY TOTALS 508 MILLION THE AMOUNT OVER 491 MILLION WILL GO TO THE GENERAL PARTNERS 9306080149 930608 COASTAL CORP UNIT'S CREDIT HOUSTON COASTAL CORP SAID ITS UNIT COASTAL NATURAL GAS CO RECEIVED A 750 MILLION CREDIT PACT FROM A GROUP OF BANKS LED BY CITIBANK AND BANKERS TRUST CO THE CREDIT AGREEMENT REPLACES A SIMILAR BANK FACILITY OF 500 MILLION THAT WOULD HAVE EXPIRED EARLY NEXT YEAR BORROWINGS FROM THE NEW FACILITY WILL REFINANCE AND EXTEND THE MATURITY OF EXISTING INDEBTEDNESS COASTAL IS A DIVERSIFIED NATURAL GAS COMPANY 9306080148 930608 CONTROL DATA ACQUIRES EVERNET ARDEN HILLS MINN CONTROL DATA SYSTEMS INC SAID IT COMPLETED ITS 22 MILLION ACQUISITION OF LOS ANGELESBASED EVERNET SYSTEMS INC A PRIVATELY HELD INSTALLER OF HIGHTECH NETWORKS CONTROL DATA SYSTEMS SAID THE HALFCASH AND HALFSTOCK DEAL IS PART OF AN EFFORT TO BEEF UP ITS COMPUTER INTEGRATION BUSINESS 9306080147 930608 INTERNATIONAL SERVICE CORP SETS PURCHASE SYDNEY AUSTRALIA ADELAIDE STEAMSHIP CO AN AUSTRALIAN INVESTMENT GROUP AGREED TO SELL ITS FUNERAL BUSINESS TO HOUSTONBASED SERVICE CORP INTERNATIONAL FOR 102 MILLION AUSTRALIAN DOLLARS US689 MILLION THE FUNERAL BUSINESS IS OWNED BY INDUSTRIAL EQUITY LTD A COMPANY EQUALLY HELD BY ADSTEAM AND ITS AFFILIATES DAVID JONES LTD AND TOOTH & CO INDUSTRIAL EQUITY AGREED TO SELL PINE GROVE FUNERAL GROUP TO SERVICE CORP FOR AN EXPECTED PROFIT OF A25 MILLION THE AUSTRALIAN COMPANY SAID THE SALE WON'T BE COMPLETED UNTIL AUGUST WITH THE PROCEEDS TO BE DISTRIBUTED TO INDUSTRIAL EQUITY'S OWNERS 9306080146 930608 KLH ENGINEERING PAYS ON CLAIM DENVER KLH ENGINEERING GROUP INC SAID IT TENDERED A CHECK FOR 15 MILLION TO ITS PRIMARY LENDER TIBOR NEMETH KLH A CONSULTING ENGINEERING FIRM SAID THIS REPRESENTED THE PRINCIPAL BALANCE THAT THE COMPANY OWED MR NEMETH UNDER ITS REVOLVING CREDIT NOTE ISSUES STILL OUTSTANDING BETWEEN THE COMPANY AND MR NEMETH INCLUDE INTEREST AND PENALTIES IF ANY IN ADDITION THE COMPANY HAS FILED LENDER LIABILITY CLAIMS AGAINST MR NEMETH WHICH REMAIN UNRESOLVED KLH ENGINEERING GROUP INC OF DENVER TENDERED A CHECK FOR 1150000 TO ITS PRIMARY LENDER IN AN ARTICLE YESTERDAY THE AMOUNT WAS MISSTATED AS 15 MILLION 9306080145 930608 TECHNOLOGY PRICE CAPS AT BAYER'S MILES UNIT PITTSBURGH MILES INC SAID THAT FOR 1993 IT WILL INCREASE OVERALL PRICES OF ITS PRESCRIPTION DRUGS AT THE RATE OF INFLATION THE COMPANY THE US UNIT OF GERMANY'S BAYER AG SAID IT APPLIED THE SAME VOLUNTARY PRICE RESTRAINTS IN 1992 MILES SAID IT IS CONCERNED ABOUT HOW THE CLINTON HEALTHCARE REFORM PROGRAM WILL VIEW THE ROLE OF PHARMACEUTICALS IN PARTICULAR ITS POSSIBLE INTRODUCTION OF GOVERNMENTIMPOSED PRICE CONTROLS 9306080144 930608 GM'S EDS UNIT GETS CONTRACT DALLAS ELECTRONIC DATA SYSTEMS CORP SAID IT SIGNED A 10YEAR AGREEMENT TO PROVIDE INFORMATION TECHNOLOGY SERVICES FOR THE PUERTO RICAN SUBSIDIARIES OF GRUPO SANTANDER A BANK HOLDING COMPANY BASED IN MADRID TERMS WEREN'T DISCLOSED BUT DALLASBASED EDS THE COMPUTER SERVICES UNIT OF GENERAL MOTORS CORP SAID THE AGREEMENT REPRESENTS A MEGACONTRACT UNDER THE AGREEMENT EDS WILL TAKE OVER MANAGEMENT OF ALL INFORMATION SYSTEMS INCLUDING TELECOMMUNICATIONS AND DATA PROCESSING FOR THE COMPANY'S PUERTO RICAN SUBSIDIARIES WHICH HAVE COMBINED ASSETS OF 55 BILLION 9306080143 930608 CANADIAN OIL PROJECT IN INDONESIA CALGARY ALBERTA CANADIAN OCCIDENTAL PETROLEUM LTD AND PANCANADIAN PETROLEUM LTD SAID THEY SIGNED A SIXYEAR CONTRACT WITH INDONESIA'S NATIONAL OIL COMPANY PERTAMINA FOR EXPLORATION ON THE INDONESIAN ISLAND OF KALIMANTAN THE CALGARY COMPANIES ARE REQUIRED TO SPEND 16 MILLION DURING THE TERM OF THE CONTRACT AND DRILL ONE WELL CANADIAN OCCIDENTAL AN ENERGY AND CHEMICALS COMPANY 268OWNED BY OCCIDENTAL PETROLEUM CORP WILL BE THE PROJECT'S OPERATOR WITH A 60 INTEREST OIL AND GAS PRODUCER PANCANADIAN'S 40 STAKE WILL BE HELD BY A WHOLLY OWNED INDONESIAN SUBSIDIARY THE COMPANIES SAID 9306080142 930608 TWO SUNBEAM EXECUTIVES TAKE PAID LEAVES FIRM SAYS SOME EMPLOYEES DISCARDED DATA SOUGHT AS EVIDENCE BY EXCEO BY GARY PUTKA AND RON SUSKIND STAFF REPORTERS OF THE WALL STREET JOURNAL TWO TOP EXECUTIVES OF SUNBEAMOSTER CO HAVE TAKEN LEAVES OF ABSENCE AMID DISCLOSURES THAT CERTAIN SUNBEAM EMPLOYEES DISCARDED DOCUMENTS SOUGHT AS LEGAL EVIDENCE IN A BITTER FIGHT FOR MANAGEMENT CONTROL THE LEAVETAKING AND MISSING DOCUMENTS ADD FURTHER TWISTS TO THE EXTRAORDINARY FALLOUT OF LITIGATION AND ACCUSATION THAT HAS FOLLOWED THE OUSTER OF PAUL KAZARIAN WHO WAS THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER UNTIL HIS REMOVAL BY THE BOARD LAST JANUARY AFTER A SPECIAL MEETING OF SUNBEAM'S BOARD CALLED ON SUNDAY THE COMPANY SAID IT GRANTED MICHAEL J LEDERMAN ITS CHIEF COUNSEL AND ROBERT SETRAKIAN CHIEF FINANCIAL OFFICER INDEFINITE PAID LEAVES MR LEDERMAN ALSO RESIGNED AS A SUNBEAM BOARD MEMBER THE LEAVES SUNBEAM SAID WERE TO GIVE THE TWO TIME TO DEAL WITH LEGAL DISPUTES BETWEEN THEM AND MR KAZARIAN ARISING FROM HIS OUSTER AT THE SAME TIME THE MAKER OF HOUSEHOLD PRODUCTS SAID IT WAS DISMAYED THAT THE CARELESSNESS OF CERTAIN EMPLOYEES HAS CAUSED DOCUMENTS AND COMPUTER FILES SOUGHT BY MR KAZARIAN TO BE DISCARDED THE DOCUMENTS AND FILES ARE PERSONAL RECORDS OF MR KAZARIAN LAST SEEN AT THE COMPANY'S HEADQUARTERS IN PROVIDENCE RI IN JANUARY THAT MR KAZARIAN HAS DEMANDED IN LEGAL PROCEEDINGS IN WHICH HE CONTENDS THAT HE WAS WRONGFULLY DISMISSED MESSRS LEDERMAN AND SETRAKIAN INVESTMENT PARTNERS AND FORMERLY CLOSE FRIENDS OF MR KAZARIAN HELPED ORCHESTRATE THE INTERNAL REVOLT THAT LED TO HIS OUSTER THE COMPANY DECLINED TO IDENTIFY THE EMPLOYEES INVOLVED IN THE DISCARDING BUT SAID THAT IT HAD NO REASON TO BELIEVE THAT THIS WAS ANYTHING OTHER THAN A MISUNDERSTANDING NEITHER MR SETRAKIAN NOR MR LEDERMAN COULD BE REACHED FOR COMMENT AS CORPORATE COUNSEL PEOPLE CLOSE TO THE COMPANY SAY MR LEDERMAN HAD RESPONSIBILITY FOR DOCUMENTS INVOLVED IN LEGAL DISPUTES MR KAZARIAN IS INVOLVED IN SEVERAL LAWSUITS AGAINST MESSRS LEDERMAN AND SETRAKIAN AND INVESTORS WHO HAVE A COMMANDING STOCK INVESTMENT IN THE COMPANY SEEKING REINSTATEMENT AND 32 BILLION IN DAMAGES FOR ALLEGED SLANDER AND LOSSES IN HIS FUTURE PROFITS IN SUNBEAM INVESTMENTS MR KAZARIAN CONTENDS THAT THE INVESTORS MONEY MANAGERS MICHAEL PRICE AND MICHAEL STEINHARDT WRONGFULLY CAUSED HIS DISMISSAL TO MAXIMIZE THEIR PROFITS SUNBEAM DIRECTORS HAVE SAID MR KAZARIAN WAS FIRED FOR ERRATIC MANAGEMENT BEHAVIOR INCLUDING USING ABUSIVE LANGUAGE AND RENEGING ON BUSINESS AGREEMENTS MESSRS PRICE AND STEINHARDT DIDN'T RETURN PHONE CALLS SEEKING COMMENT MR KAZARIAN HAS DENIED THE ALLEGATIONS AGAINST HIM AND MESSRS PRICE AND STEINHARDT HAVE DENIED MR KAZARIAN'S CHARGES FUNDS MANAGED BY MESSRS PRICE AND STEINHARDT ARE PRINCIPAL INVESTORS IN A PARTNERSHIP THAT HOLDS 77 OF SUNBEAM'S STOCK MR KAZARIAN SAYS THE TWO WOULD LIKE TO DISSOLVE THE PARTNERSHIP IN WHICH HE IS ALSO AN INVESTOR TO CUT HIM OUT AND REALIZE THEIR GAINS SOONER THAN THE TERMS OF THEIR AGREEMENT CURRENTLY ALLOW IN A STATEMENT YESTERDAY MR KAZARIAN SAID HE WAS EXTREMELY DISAPPOINTED THAT THE DOCUMENTS WERE DISCARDED AND DISMAYED THAT THE EMPLOYEES RESPONSIBLE WEREN'T IDENTIFIED MR KAZARIAN ADDED IT'S DIFFICULT TO BELIEVE THAT THE DESTRUCTION OF MASSIVE AMOUNTS OF DOCUMENTS WAS THE RESULT OF A MISUNDERSTANDING DAVID EISEMAN AN ATTORNEY FOR MR KAZARIAN SAID THE MISSING RECORDS INCLUDED MORE THAN 100 INDIVIDUAL FILES OF PAPERS AND NOTES AND THE ENTIRE CONTENTS OF MR KAZARIAN'S PERSONAL COMPUTER'S MEMORY AMONG THE DOCUMENTS SOUGHT BY MR KAZARIAN ARE FILES THAT HE HAS SAID THAT HE MAINTAINED ON VARIOUS MATTERS AND PEOPLE WHILE AT SUNBEAM INCLUDING AT LEAST ONE FILE ON MR PRICE STUART SHAPIRO AN ATTORNEY FOR MR PRICE HAS CONFIRMED EXISTENCE OF WHAT HE HAS CALLED MR KAZARIAN'S J EDGAR HOOVER FILES AND SAID THAT THEY MADE MR PRICE AND OTHERS UNEASY ALTHOUGH HE SAID HIS CLIENT HAS DONE NOTHING WRONG MR KAZARIAN SAYS ONE OF THE FILES CONCERNED RH MACY & CO AS REPORTED MR KAZARIAN HAS CHARGED MR PRICE WITH PRESSING SUNBEAM TO GRANT FAVORABLE CREDIT TERMS TO MACY AT A TIME WHEN MR PRICE'S MUTUAL SERIES MUTUAL FUNDS HELD INVESTMENTS IN MACY MR PRICE HAS ACKNOWLEDGED SPEAKING TO MR KAZARIAN ON MACY'S BEHALF BUT HAS DENIED EXERTING PRESSURE 9306080141 930608 SCECORP UNIT'S INDIA VENTURE ROSEMEAD CALIF SCECORP'S MISSION ENERGY CO UNIT AND ASHOK LEYLAND LTD OF MADRAS INDIA SAID MISSION WON'T BE INVOLVED IN DEVELOPING A PROPOSED 1000MEGAWATT COALFIRED GENERATING STATION IN ANDHRA PRADESH INDIA THE COMPANIES SAID THE JOINT VENTURE WAS DISCONTINUED BECAUSE THEY COULDN'T COME TO TERMS ON MANAGEMENT CONTROL AND OTHER ISSUES ASHOK LEYLAND SAID IT IS IN DISCUSSIONS WITH OTHER POTENTIAL PARTNERS FOR THE PLANT MISSION ENERGY SAID IT STILL IS INTERESTED IN PRIVATE POWER DEVELOPMENT IN INDIA WHERE GENERATING CAPACITY IS BEING OUTSTRIPPED BY DEMAND 9306080140 930608 WHO'S NEWS MHI GROUP INC MHI GROUP INC TALLAHASSEE FLA CLIFFORD R HINKLE WAS ELECTED TO THE BOARD OF THIS FUNERAL SERVICES COMPANY MR HINKLE 44 YEARS OLD IS PRESIDENT OF FLAGLER CAPITAL CORP IN TALLAHASSEE HE FILLS A VACANCY ON THE BOARD 9306080139 930608 WHO'S NEWS LONG ISLAND LIGHTING CO LONG ISLAND LIGHTING CO HICKSVILLE NY ARTHUR C MARQUARDT 47 YEARS OLD WAS NAMED SENIOR VICE PRESIDENT A NEWLY CREATED POSITION OF THIS UTILITY'S GAS BUSINESS UNIT MR MARQUARDT PREVIOUSLY WAS VICE PRESIDENT OF STRATEGIC BUSINESS PLANNING 9306080138 930608 WHO'S NEWS MARKETING EXECUTIVE AT COORS BREWING RECHHOLTZ RESIGNS DENVER ROBERT A RECHHOLTZ EXECUTIVE VICE PRESIDENT OF MARKETING FOR COORS BREWING CO QUIT THE NATION'S THIRD LARGEST BREWER TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY SAID MR RECHHOLTZ WHO HAS BEEN WITH COORS FOR 11 YEARS WAS IN CHARGE OF COORS'S MARKETING EFFORTS AS THE COMPANY EXPANDED FROM 11 TO 50 STATES INTRODUCED SEVERAL NEW BRANDS AND SLUGGED IT OUT IN THE NATION'S BEER WARS HE HELPED CONVINCE THE COORS FAMILY THAT IT NEEDED TO PUT MORE MONEY AND PIZAZZ INTO COORS'S MARKETING EFFORTS SAYS BENJ STEINMAN EXECUTIVE EDITOR OF BEER MARKETER'S INSIGHTS A TRADE NEWSLETTER MR RECHHOLTZ 56 YEARS OLD WAS PASSED OVER THIS YEAR WHEN THE ADOLPH COORS CO UNIT NAMED W LEO KIELY PRESIDENT OF THE BREWERY SUCCEEDING PETER COORS WHO REMAINS CHIEF EXECUTIVE OFFICER OF THE BREWER ANALYSTS CONSIDERED MR RECHHOLTZ THE TOP INSIDE PICK FOR THE JOB AND SOME PREDICTED FRICTION BETWEEN HIM AND MR KIELY WHEN THE DECISION WAS MADE TO HIRE AN OUTSIDER IN FEBRUARY MR KIELY 46 WAS A FORMER DIVISION PRESIDENT FOR FRITOLAY INC WITH A STRONG MARKETING BACKGROUND THIS COULD BE A CLASSIC SITUATION WHERE CHANGES AT THE TOP DON'T ALWAYS MAKE EVERYONE HAPPY SAID EMANUEL GOLDMAN ANALYST AT PAINEWEBBER INC SAN FRANCISCO BUT MR RECHHOLTZ PROBABLY WASN'T FORCED OUT HE SAID COORS IS HOLDING UP VERY WELL IN A VERY DIFFICULT INDUSTRY ENVIRONMENT AND BOB CAN'T BE FAULTED IN AN INTERVIEW MR RECHHOLTZ SAID HE HAD NO PROBLEMS WORKING WITH MR KIELY CALLING THEIR FIVEMONTH WORKING RELATIONSHIP FUN THE NEW GUY ON BOARD DIDN'T INFLUENCE MY DECISION AT ALL MR RECHHOLTZ SAID HE SAID HE WILL SPEND THE SUMMER AT HIS HOME IN VAIL AND THEN WILL PURSUE SOME BUSINESS INTERESTS THAT HE HAS HAD ON THE BACKBURNER FOR SOME TIME COORS SAID IT HASN'T MADE A DECISION ABOUT WHO IF ANYONE WILL SUCCEED MR RECHHOLTZ IN A STATEMENT MR COORS PRAISED MR RECHHOLTZ AND SAID HIS ENERGY CREATIVITY AND PASSION WILL BE MISSED AT THE COMPANY 9306080137 930608 WHO'S NEWS BURNHAM PACIFIC PROPERTIES INC BURNHAM PACIFIC PROPERTIES INC SAN DIEGO MICHAEL L RUBIN 47 YEARS OLD WAS NAMED TO THE NEWLY CREATED POST OF CHIEF OPERATING OFFICER HE CONTINUES AS EXECUTIVE VICE PRESIDENT OF THIS REAL ESTATE INVESTMENT TRUST 9306080136 930608 BUSINESS BRIEFS NCR CORP A SUBSIDIARY OF AMERICAN TELEPHONE & TELEGRAPH CO WAS AWARDED A 285 MILLION CONTRACT TO INSTALL AUTOMATED TELLER MACHINES ABOARD 200 US NAVY SHIPS FERRO CORP COMPLETED ITS ACQUISITION OF THE CERAMIC BUSINESS OF BAYER SPA A UNIT OF GERMANY'S BAYER AG TERMS WEREN'T DISCLOSED HUNTINGTON BANCSHARES INC REACHED A DEFINITIVE AGREEMENT TO BUY FIRST BANCORP INDIANA INC LAFAYETTE IND IN A CASH AND STOCK TRANSACTION VALUED AT 475 MILLION EASTMAN KODAK CO AGREED IN PRINCIPLE TO SELL ITS DAYTON OPERATIONS TO ISRAEL'S SCITEX CORP SCITEX WILL PAY 35 MILLION IN CASH AND MAKE FUTURE CONTINGENT PAYMENTS OF AS MUCH AS 35 MILLION TRANSTECHNOLOGY CORP AGREED TO ACQUIRE TRW INC'S PALNUT METAL FASTENER UNIT FOR ABOUT 20 MILLION PLUS ASSUMPTION OF CERTAIN LIABILITIES HARTMARX CORP SOLD ITS FASHIONAIRE APPAREL INC UNIFORM BUSINESS TO A NEWLY FORMED CORPORATION CONTROLLED BY KMR GROUP TERMS WEREN'T DISCLOSED VISHAY INTERTECHNOLOGY INC REACHED AN AGREEMENT IN PRINCIPLE TO BUY ASSETS OF THE TANTALUM CAPACITOR BUSINESS OF NORTH AMERICAN PHILIPS CORP A UNIT OF PHILIPS ELECTRONICS NV FOR 11 MILLION 9306080135 930608 LEISURE & ARTS TIME OFF DIVERSIONS AND EXCURSIONS JUNE 821 THE BARNUM MUSEUM MARKS ITS CENTENNIAL WITH THIS SHOW WHICH HIGHLIGHTS THE FAMOUS SHOWMAN'S INNOVATIVE PROMOTIONAL TECHNIQUES AND TRACKS HIS INFLUENCE ON ADVERTISING OVER THE YEARS AMONG THE 300 OBJECTS ON DISPLAY ARE PRINT AND TELEVISION ADVERTISEMENTS AND PROMOTIONAL PRODUCTS SUCH AS TOYS AND INTERACTIVE GAMES THEY INCLUDE A VARIETY OF SHIRLEY TEMPLE AND JENNY LIND DOLLS CIRCUS POSTERS DOZENS OF BATMAN ARTIFACTS AND BEATLES MEMORABILIA IN THE EUROPEAN CACHET SECTION OF THE SHOW BARNUM IS CREDITED WITH DEVISING THE PROMOTIONAL TECHNIQUES THAT LATER HELPED THE BEATLES SUCCEED IN THE US MORE THAN 75 COLORFUL PRINTS AND RELATED DRAWINGS BY AMERICAN ABSTRACTIONIST HELEN FRANKENTHALER FROM HER FIRST PRINT FIRST STONE 1961 TO HER MOST RECENT FREEFALL 19921993 NATIONAL GALLERY OF ART FOURTH STREET AT CONSTITUTION AVENUE NW THROUGH SEPT 6 202 7374215 THE EXHIBIT THEN TRAVELS TO THE SAN DIEGO MUSEUM OF ART SEPT 25NOV 28 THE MUSEUM OF FINE ARTS BOSTON JAN 5MARCH 13 1994 AND THE CONTEMPORARY ARTS CENTER CINCINNATI APRIL 8JUNE 17 1994 A TWOFLOOR DISPLAY THAT EXPLORES 4000 YEARS OF THE JEWISH EXPERIENCE IS THE CENTERPIECE OF THE NEWLY EXPANDED AND RENOVATED JEWISH MUSEUM OPENING ON SUNDAY THE 2 1/2YEAR 36 MILLION PROJECT DESIGNED BY KEVIN ROCHE OF KEVIN ROCHE JOHN DINKELOO & ASSOCIATES DOUBLES THE GALLERY SPACE AND CREATES NEW SPACE FOR EDUCATIONAL PROGRAMS JEWISH MUSEUM 1109 FIFTH AVE AT 92ND STREET 212 4233271 MANY OF THE BIG NAMES IN MODERN DANCE ARE HERE FOR THIS ANNUAL SUMMERLONG FESTIVAL THEY INCLUDE JAZZ TAP ENSEMBLE JUNE 29JULY 3 MERCE CUNNINGHAM DANCE COMPANY JULY 610 PAUL TAYLOR DANCE COMPANY JULY 1317 MARK MORRIS DANCE GROUP JULY 2024 GARTH FAGAN DANCE JULY 2731 AND BILL T JONES/ARNIE ZANE & CO AUG JAMES LEVINE BOWS OUT AS FESTIVAL MUSIC DIRECTOR WITH A FAREWELL CONCERT JUNE 27 FEATURING THE CHICAGO SYMPHONY ORCHESTRA ON THE PROGRAM STRAVINSKY'S SYMPHONY OF PSALMS FOR CHORUS AND ORCHESTRA STRAUSS'S DEATH AND TRANSFIGURATION AND BEETHOVEN'S SYMPHONY NO 7 IN A MAJOR OP 92 OTHER EVENTS THROUGHOUT THE SUMMER INCLUDE CLASSICAL PERFORMANCES BY THE RAVINIA FESTIVAL ORCHESTRA THE ISRAEL PHILHARMONIC ORCHESTRA CHAMBERMUSIC CONCERTS AND RECITALS JAZZ IN JUNE WITH THE WYNTON MARSALIS SEPTET SONNY ROLLINS AND THE ARTURO SANDOVAL QUINTET AMONG OTHERS BLUES GOSPEL COUNTRY AND FOLK MUSIC THE NEVILLE BROTHERS DOLLY PARTON NATALIE COLE LOS LOBOS AND FATS DOMINO AND EIGHT SHOWS FOR CHILDREN WITH VARIOUS ARTISTS RAVINIA 25 MILES NORTH OF THE LOOP ON THE NORTH SHORE JUNE 11SEPT 6 312 RAVINIA 9306080134 930608 INTERNATIONAL ITALY'S ENI DISCLOSES EXTENT OF KICKBACKS NAMES NEW MANAGERS MILAN ITALIAN ENERGY COMPANY ENTE NAZIONALE IDROCARBURI SPA NAMED FOUR TOP MANAGERS TO SUCCEED THOSE ARRESTED IN EVERWIDENING CORRUPTION SCANDALS AND DISCLOSED IN ITS 1992 BALANCE SHEETS THE SCALE OF KICKBACKS PAID TO POLITICAL PARTIES AT THE ANNUAL MEETINGS OF TWO ENI SUBSIDIARIES YESTERDAY EXECUTIVES REVEALED THAT ENI UNITS PAID 245 BILLION LIRE 1657 MILLION IN BRIBES POLITICIANS THROUGH SAIPEM SPA ITS PIPELINE CONSTRUCTION GROUP AND NUOVO PIGNONE ITS ENGINEERING UNIT BETWEEN 1987 AND 1992 TO OBTAIN PUBLIC WORKS CONTRACTS WHILE TESTIMONY FROM FORMER ENI MANAGERS HAD INDICATED ENI SUBSIDIARIES HAD PAID BRIBES IN THE PAST YESTERDAY'S ANNOUNCEMENT WAS THE FIRST TIME A COMPANY INCLUDED THE KICKBACKS IN PUBLISHED BALANCE SHEETS IT ALSO CLARIFIED JUST HOW MUCH WAS INVOLVED IN THE ILLEGAL PAYMENTS SAIPEM CHAIRMAN GIOVANNI DELL'ORTO ARRESTED LAST MARCH FOR ALLEGED INVOLVEMENT IN THE SCANDAL WAS SUCCEEDED YESTERDAY BY LUCIANO SGUBINI ENI ALSO NAMED A NEW BOARD FRANCO CIATTI CHAIRMAN OF NUOVO PIGNONE ARRESTED IN MARCH ON CORRUPTION CHARGES WILL BE SUCCEEDED BY LUCIO LUSSU ENI SAID A NEW BOARD FOR NUOVO PIGNONE WAS ALSO APPROVED ALSO GUGLIELMO MOSCATO WILL SUCCEED RAFFAELE SANTORO AS CHAIRMAN OF OIL EXPLORATION AND PRODUCTION GROUP AGIP FOLLOWING MR SANTORO'S ARREST IN MARCH ON CORRUPTION CHARGES VITTORIO MEAZZINI WILL BECOME THE NEW CHAIRMAN OF GAS SUBSIDIARY SNAM SPA SUCCEEDING PIO PIGORINI WHO WAS ALSO ARRESTED IN MARCH ENI CHAIRMAN GABRIELE CAGLIERI WAS ALSO ARRESTED IN MARCH ON CORRUPTION CHARGES BUT A SUCCESSOR HAS NOT YET BEEN NAMED MANAGING DIRECTOR FRANCO BERNABE HAS ASSUMED HIS DUTIES TEMPORARILY IN FINANCIAL RESULTS DISCLOSED YESTERDAY SAIPEM SAID IT SWUNG TO A NET PROFIT OF 48 BILLION LIRE IN THE FIRST FOUR MONTHS OF THIS YEAR FROM A LOSS OF ONE BILLION LIRE DURING THE SAME PERIOD IN 1992 REVENUE ROSE 20 TO 633 BILLION LIRE 9306080133 930608 WHO'S NEWS UNISYS CORP UNISYS CORP BLUE BELL PA G JASON ABBOUD 38 YEARS OLD WAS NAMED VICE PRESIDENT TELECOMMUNICATIONS A NEW POSITION AT THIS INFORMATION SYSTEMS COMPANY MR ABBOUD HAD BEEN DIRECTOR OF GLOBAL STRATEGY AT NYNEX CORP IN HIS NEW POSITION MR ABBOUD WILL PLAN AND IMPLEMENT A STRATEGY TO EXPAND UNISYS'S PRESENCE IN THE TELECOMMUNICATIONS INDUSTRY 9306080132 930608 WHO'S NEWS US SHOE CORP US SHOE CORP CINCINNATI NOEL DAVIDSON RESIGNED AS CHAIRMAN OF THIS RETAILER'S WOMEN'S APPAREL UNIT THREE MONTHS AFTER HE WAS REPLACED AS PRESIDENT AND CHIEF EXECUTIVE OF THE BUSINESS US SHOE SAID IT WOULDN'T NAME A SUCCESSOR MICHAEL M SEARLES WHO IN MARCH SUCCEEDED MR DAVIDSON AS THE UNIT'S PRESIDENT AND CHIEF EXECUTIVE REMAINS IN THOSE POSTS MR DAVIDSON 61 YEARS OLD IS THE SECOND EXECUTIVE TO ANNOUNCE HIS DEPARTURE IN A WEEK MICKEY SCHULMAN FRIDAY RESIGNED AS PRESIDENT OF US SHOE'S FOOTWEAR WHOLESALING THE COMPANY CALLED THE DEPARTURES UNRELATED AND SAID MR DAVIDSON'S RESIGNATION WAS ENTIRELY HIS DECISION 9306080131 930608 WHO'S NEWS GOODYEAR TIRE & RUBBER CO GOODYEAR TIRE & RUBBER CO AKRON OHIO ALVIN R EASTWOOD 54 YEARS OLD WAS NAMED VICE PRESIDENT OF REPLACEMENT TIRE SALES FOR THIS TIRE MAKER MR EASTWOOD WHO WAS A GENERAL MANAGER OF PASSENGER TIRES SUCCEEDS EDWARD F GALLAGHER WHO BECOMES VICE PRESIDENT OF RETAIL STORES MR GALLAGHER 51 SUCCEEDS ROBERT HUNNELL JR 47 WHO RESIGNED TO PURSUE OTHER BUSINESS INTERESTS THE COMPANY SAID 9306080130 930608 WHO'S NEWS DAKA INTERNATIONAL INC DAKA INTERNATIONAL INC DANVERS MASS MICHAEL WOODHOUSE WAS NAMED CHIEF FINANCIAL OFFICER OF THIS HOLDING COMPANY FOR THE FUDDRUCKERS RESTAURANT CHAIN EFFECTIVE LATER THIS MONTH MR WOODHOUSE CURRENTLY CHIEF FINANCIAL OFFICER OF TIA'S INC A MEXICAN RESTAURANT CHAIN SUCCEEDS DAVID TERHUNE WHO RESIGNED LAST YEAR 9306080129 930608 NATIONAL MEDIA DROPS PLAN TO OFFER SHARES PHILADELPHIA NATIONAL MEDIA CORP SAID THAT IN VIEW OF CURRENT MARKET CONDITIONS IT WON'T PROCEED WITH PLANS TO SELL ABOUT TWO MILLION COMMON SHARES NATIONAL MEDIA A MARKETER OF CONSUMER PRODUCTS THROUGH DIRECTRESPONSE TELEVISION SAID IT AND ITS FINANCIAL ADVISERS WILL CONSIDER FINANCING ALTERNATIVES MORE APPROPRIATE TO THE CURRENT ENVIRONMENT THE COMPANY SAID PROCEEDS FROM FINANCING WOULD BE USED FOR THE ADVANCE PURCHASE OF TV AIR TIME DEVELOPMENT OF PRODUCTS FOR CAPITAL EXPENDITURES AND REPAYMENT OF DEBT 9306080128 930608 WHO'S NEWS FEDERAL HOME LOAN MORTGAGE CORP FEDERAL HOME LOAN MORTGAGE CORP MCLEAN VA ANN B SCHNARE 45 YEARS OLD WAS NAMED VICE PRESIDENT OF HOUSING ECONOMICS AT THIS FEDERALLY CHARTERED BUYER OF HOME MORTGAGES MS SCHNARE WHOSE POSITION IS NEW WAS SENIOR VICE PRESIDENT AT ICF INC A UNIT OF ENVIRONMENTAL ENGINEERING AND CONSULTING FIRM ICF INTERNATIONAL INC IN FAIRFAX VA 9306080127 930608 WHO'S NEWS CONVEX COMPUTER CORP CONVEX COMPUTER CORP RICHARDSON TEXAS TERRENCE L ROCK 46 YEARS OLD WAS NAMED PRESIDENT OF THIS SUPERCOMPUTER MANUFACTURER SUCCEEDING ROBERT J PALUCK 45 WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR ROCK'S FORMER POSITION OF CHIEF OPERATING OFFICER WON'T BE FILLED THE COMPANY SAID 9306080126 930608 WHO'S NEWS ENHANCE FINANCIAL SERVICES GROUP INC ENHANCE FINANCIAL SERVICES GROUP INC NEW YORK RICHARD J SHIMA 53 YEARS OLD WAS ELECTED TO THE 14MEMBER BOARD OF THIS REINSURER OF MUNICIPAL BONDS AND OTHER CREDIT INSTRUMENTS MR SHIMA IS MANAGING DIRECTOR OF RUSSELL MILLER INC AN INVESTMENT BANKING CONCERN SPECIALIZING IN THE INSURANCE INDUSTRY UNTIL 1991 HE WAS VICE CHAIRMAN AND CHIEF INVESTMENT OFFICER OF TRAVELERS CORP MR SHIMA SUCCEEDS DANIEL MUSHEGIAN 50 WHO RETIRED FROM THE BOARD 9306080125 930608 MARKETING & MEDIA RR DONNELLEY BUYS IRISH LANGUAGE CONCERN CHICAGO RR DONNELLEY & SONS CO THE WORLD'S LARGEST COMMERCIAL PRINTER CONTINUED A STRING OF OVERSEAS ACQUISITIONS BY PURCHASING EUROPEAN LANGUAGE TRANSLATIONS LTD OF DUBLIN IRELAND THE AMOUNT OF THE TRANSACTION WAS NOT DISCLOSED THE IRISH COMPANY EMPLOYS 40 PEOPLE FULL TIME IN DUBLIN AND WORKS WITH A PANEL OF MORE THAN 150 LANGUAGE PROFESSIONALS THROUGHOUT EUROPE EUROPEAN LANGUAGE'S SERVICES INCLUDE TRANSLATION SOFTWARE DEVELOPMENT TECHNICAL WRITING AND ELECTRONIC PUBLISHING DONNELLEY NOW HAS A PRESENCE THROUGHOUT MUCH OF EUROPE AS WELL AS IN HONG KONG AND TOKYO THE COMPANY WHICH PRODUCES CATALOGS NEWSPAPER ADVERTISING INSERTS BOOKS AND DIRECTORIES ALSO IN 1992 PURCHASED A MEXICAN PRINTER AND SEALED A JOINT VENTURE WITH A LONDON FINANCIAL PRINTING CONCERN 9306080124 930608 RAWSTEEL PRODUCTION DECLINED 2 IN WEEK WASHINGTON RAWSTEEL PRODUCTION BY US MILLS DECREASED 2 LAST WEEK TO 1864000 TONS FROM 1902000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 47 FROM THE 1781000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 881 OF ITS CAPABILITY LAST WEEK COMPARED WITH 899 THE PREVIOUS WEEK AND 827 A YEAR AGO THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9306080123 930608 USW REACHES PACTS WITH HUFFY STEEL FIRM PITTSBURGH THE UNITED STEELWORKERS UNION REACHED NEW LABOR AGREEMENTS COVERING MORE THAN 2200 WORKERS AT HUFFY CORP THE BICYCLE MAKER AND STEEL OF WEST VIRGINIA INC A SMALL MAKER OF STEEL PRODUCTS HUFFY SAID ITS NEW CONTRACT COVERING ABOUT 1800 WORKERS AT ITS CELINA OHIO PLANT REDUCES HEALTHCARE COSTS PROVIDES A MODEST WAGE INCREASE AND AN AGREEMENT TO IMPROVE PRODUCTIVITY THE COMPANY DECLINED TO ELABORATE BUT SAID COSTS TO THE COMPANY WILL BE ESSENTIALLY FLAT THE THREEYEAR CONTRACT REPLACES ONE THAT EXPIRED FRIDAY STEEL OF WEST VIRGINIA SAID ITS NEW CONTRACT REPLACES ONE THAT ALSO EXPIRED FRIDAY IT COVERS 446 WORKERS AT THE COMPANY'S MAIN PLANT IN HUNTINGTON WVA THE STEELMAKER DECLINED TO DISCLOSE ANY DETAILS 9306080122 930608 NO MORE SOMETHING FOR NOTHING BY BEN WATTENBERG PRESIDENT CLINTON HAS TAKEN TWO NICE SMALL STEPS TOWARD GETTING BACK IN THE GOOD GRACES OF THE VOTERS GERGEN AND GUINIER HIRING ONE UNHIRING THE OTHER IT IS A BEGINNING WHAT SHOULD HE DO NEXT WHY I SUGGEST TWO SIGNS FOR MR CLINTON'S DESK TO HELP HIM FIND THE FOCUS THAT WASHINGTON WANTS THE FIRST SIGN SHOULD READ NO MORE SOMETHING FOR NOTHING THE SECOND NIXON TO CHINA MR CLINTON PROCLAIMED NO MORE SOMETHING FOR NOTHING REGULARLY DURING THE CAMPAIGN IT IS A GREAT SLOGAN IT WENT TO THE HEART OF WHAT AILS AMERICA MOST TODAY IT COULD RENEW MR CLINTON POLITICALLY NMSFN WOULD NOT HAVE WORKED FOR GEORGE BUSH IT WOULD HAVE BEEN ATTACKED AS A HEARTLESS RIGHTWING ASSAULT ON NEEDY PEOPLE BUT WHEN EXPOUNDED BY MR CLINTON THE REACTION WAS HOW WONDERFUL DEMOCRATS HAVE FINALLY FIGURED OUT WHAT LIBERALS ARE DOING WRONG AND NOMINATED A MODERATE TO FIX IT MR CLINTON PREACHED NO MORE SOMETHING FOR NOTHING AND BACKED IT UP HE SAID THAT AMERICA NEEDED SCHOOL SYSTEMS THAT HAD STANDARDS TESTS AND CONSEQUENCES THAT MEANS GETTING AWAY FROM SOMETHINGFORNOTHING IDEAS LIKE AUTOMATIC PROMOTION GRADE INFLATION STUDENT WAREHOUSING AND BOOSTING ESTEEM INSTEAD OF DEMANDING ACCOMPLISHMENT IN ARKANSAS MR CLINTON WAS IN THE VANGUARD OF THE STANDARDS MOVEMENT WORKING WITH HIS WIFE HE MADE PROGRESS HE SAID WE HAD TO GET TOUGHER ON CRIME LEST CRIMINALS GET SOMETHING FOR NOTHING HIS BASIC PROPOSAL WAS 100000 MORE COPS WHICH COSTS 10 BILLION A YEAR HE SAID THAT WE HAD TO END THE SOMETHINGFORNOTHING WELFARE SYSTEM TO MAKE IT A HELPING HAND NOT A WAY OF LIFE HE HAD AN APPARENTLY TOUGH PLAN TWO YEARS AND OUT AFTER TWO YEARS ABLEBODIED WELFARE RECIPIENTS GO OFF THE DOLE AND HE WAS FORTHRIGHT ABOUT THE ULTIMATE SOMETHINGFORNOTHING PROGRAM QUOTAS CONSIDER THIS WE BELIEVE IN GUARANTEEING EQUAL OPPORTUNITY AND IN AFFIRMATIVE ACTION AND DEVELOPMENTAL PROGRAMS TO ASSURE THAT OPPORTUNITIES ARE IN FACT EQUAL BUT GOVERNMENT SHOULD NOT MANDATE EQUAL OUTCOMES THEREFORE WE OPPOSE QUOTAS THAT CREATE RACIAL GENDER OR ETHNIC PREFERENCE THAT LANGUAGE COMES FROM A RESOLUTION PASSED IN 1991 BY THE DEMOCRATIC LEADERSHIP COUNCIL WHOSE CHAIRMAN WAS BILL CLINTON QUOTAFIGHTER NMSFN POSITIONS GOT MR CLINTON ELECTED WHEN THE POLLS NARROWED THE CLINTON CAMPAIGN AIRED TWO COMMERCIALS IN KEY STATES THE COMMERCIALS WEREN'T ABOUT GROWING THE ECONOMY ONE WAS ABOUT CRIME THE OTHER ABOUT WELFARE THE SUBTEXT WAS CLEAR MR CLINTON WAS A DIFFERENT DEMOCRAT WHO AS PRESIDENT COULD EXPLAIN TO LIBERAL DEMOCRATS THAT THE SOMETHINGFORNOTHING IDEA WAS A BUMMER AND CREATED A DEPENDENCY ADDICTION AMONG THOSE IT WAS DESIGNED TO HELP AND THAT HE COULD CHANGE IT BECAUSE HE HAD CREDIBILITY WITH LIBERALS SO MR CLINTON NEEDS A NMSFN SIGN ON HIS DESK AND HE SHOULD FOCUS ON IT LIKE A LASER BEAM EVEN WHILE THE BROKERAGE ON THE BUDGET GOES ON THIS WOULD BE GOOD FOR AMERICA BECAUSE THESE CORROSIVE SOCIAL ISSUES ARE OUR CENTRAL PROBLEMS THE ECONOMY IS IMPORTANT BUT THE ARGUMENT IS ABOUT WHETHER THE RICHEST NATION IN HISTORY WILL GROW BY 15 A YEAR OR 25 IT WOULD ALSO BE GOOD POLITICS FOR MR CLINTON AND THE DEMOCRATS AS THE TIDAL DEFEAT OF SOONTOBEFORMER SEN BOB KRUEGER SHOWS MR CLINTON IS A POLITICAL LOSER ON TAXES AND SPENDING IT IS NMSFN THAT SHOULD BE MR CLINTON'S SIGNATURE PROGRAM IF HE CAN MAKE IT HAPPEN WHAT ABOUT NIXON TO CHINA THAT'S BELTWAY CODE FOR A NOBLE ASPECT OF OUR POLITICS A PRESIDENT TRUSTED BY HIS PARTY TRANSFORMS HIS PARTY WHEN THE PARTY IS MISGUIDED ANTICOMMUNIST REPUBLICAN RICHARD NIXON WENT TO CHINA TO BREAK A GEOPOLITICAL LOGJAM AND ANTICOMMUNIST REPUBLICANS SAID IF NIXON DID IT MAYBE IT'S ALL RIGHT AND SO IT WAS MR CLINTON CAN BE AN IMPORTANT PRESIDENT IF HE TAKES THE DEMOCRATIC LIBERALS TO CHINA ON THE ISSUE OF NO MORE SOMETHING FOR NOTHING ALAS SO FAR HE HASN'T DONE MUCH ALTHOUGH HE HAS A MILD EXCUSE BY LAW A BUDGET PROPOSAL COMES EARLY PROGRAM CHANGES USUALLY COME LATER SO WE HAVE A CLINTON BUDGET REQUEST FOR MORE BILLIONS IN FOOD STAMPS AND HEAD START BUT WITHOUT A CLUE AS TO WHETHER THOSE ADDED BILLIONS WILL PLAY A ROLE IN ENDING WELFARE AS WE KNOW IT AN UNANNOUNCED CLINTON WELFARE TASK FORCE IS AT WORK SOONER OR LATER SOONER IF MR CLINTON IS SMART THERE WILL BE A NEW WELFARE BILL BUT WHEN IT ARRIVES WHO'S GOING TO TAKE WHOM TO CHINA THE SLENDER RECORD SO FAR IS MIXED AND INSTRUCTIVE MR CLINTON'S EDUCATION BILL GOALS 2000 AS DRAFTED BY THE EDUCATION DEPARTMENT AND THE WHITE HOUSE STARTED OUT WITH A DIFFERENT DEMOCRAT DESIGN IT ADVANCED THE STANDARDSTESTSCONSEQUENCES IDEA BUT WHEN IT WAS SENT TO LIBERAL CONGRESSIONAL DEMOCRATIC BARONS THE CLINTONITES WERE INFORMED IT WAS DEAD ON ARRIVAL AND SO THE PROPOSAL WAS AMENDED DILUTED AND TRANSFORMED PERHAPS IRREDEEMABLY PERHAPS NOT WE WILL SEE HOW IT PLAYS OUT WHY WAS IT CHANGED THE CHAIRMAN OF THE HOUSE EDUCATION AND LABOR COMMITTEE REP WILLIAM FORD D MICH HAS A WORLD VIEW ABOUT THESE MATTERS AS SOMEONE CLOSE TO THE ACTION DESCRIBED IT MR FORD IS UNALTERABLY OPPOSED TO ASSESSMENTS WITH CONSEQUENCES GULP THAT'S A BRICK WALL IF YOU DO NOT BELIEVE IN ASSESSMENTS AND TESTING WITH CONSEQUENCES YOU DO NOT BELIEVE IN STANDARDS AND YOUR GAME WILL BE TO SUBVERT CLINTONISM NOT SUPPORT IT THE LIBERALS THINK TESTING WITH CONSEQUENCES HARMS MINORITY STUDENTS NEW DEMOCRATS THINK IT SAVES THEM ALAS THERE IS A LIBERAL BRICK WALL BEHIND EACH OF THE NMSFN PROGRAMS LIBERALS MAY FAVOR 100000 MORE POLICEMEN BUT NOT IF THE MONEY COMES FROM SOCIAL WELFARE PROGRAMS THEY MAY FAVOR WELFARE REFORM BUT THEY WILL DEMAND EXEMPTIONS BY THE BUSHEL AND NEVER TOUCH GREATER WELFARE INCLUDING FOOD STAMPS AND PUBLIC HOUSING WHICH INVOLVES MORE THAN 90 OF THE VALUE OF WELFARE THEY WILL TELL YOU THAT THEY ARE AGAINST QUOTAS AND THEN FAVOR THE APPOINTMENT OF LANI GUINIER THE APPEALING AND ARTICULATE DIVA OF DIVERSITY WHO GOES BEYOND QUOTAS TOWARD SEPARATISM SO IF MR CLINTON IS TO PREVAIL AND CHANGE THE DEMOCRATIC ETHOS AND TAKE THE LIBERALS TO CHINA AND CHANGE THEIR STUBBORN MINDS IT WILL MEAN TRENCH WARFARE BOTH IDEOLOGICAL AND PROGRAMMATIC FOR THAT DAVID GERGEN ISN'T ENOUGH MR CLINTON NEEDS HIS OWN ARMY OF IDEOLOGICAL SHOCK TROOPS TO FORM A SECOND CULTURE IN HIS WHITE HOUSE AND IN HIS ADMINISTRATION THERE ARE SOME SOLDIERS AVAILABLE FROM THE SMALL LEGIONS OF THE DEMOCRATIC LEADERSHIP COUNCIL STARTING WITH AL FROM THE DLC PRESIDENT AND WILL MARSHALL THE PRESIDENT OF THE PROGRESSIVE POLICY INSTITUTE BECAUSE THAT KIND OF SECOND CULTURE HAS BEEN BARELY PRESENT AT THE WHITE HOUSE NO ONE CAUGHT THE FIRESTORM POTENTIAL IN MS GUINIER'S WRITINGS TO LIBERALS THEY DIDN'T SEEM EXTREME TO NEW DEMOCRATS THE FIRST PARAGRAPH WOULD HAVE SET OFF ALARM BELLS A PRESIDENT NEEDS A SPECTRUM OF ADVISERS AND IMPLEMENTERS MR CLINTON HAS LIBERALS HE NOW NEEDS NEW DEMOCRATS FOR ADVICE AND TO BIRDDOG AND BULLDOZE HIS SIGNATURE NMSFN PROGRAMS THROUGH THE CONGRESS AND THROUGH HIS OWN ADMINISTRATION ONLY THEN CAN HE HOPE TO TRANSFORM HIS PARTY EXPLAINING TO LIBERALS THAT THEY MAY STILL FLOURISH BUT ONLY IF THEY FIRST REFORM WE ALREADY KNOW WHAT THE NEXT ELECTIONS ARE GOING TO BE ABOUT IN 1994 AND 1996 REPUBLICANS WILL SAY THEY TRICKED AMERICA THEY'RE NOT REALLY DIFFERENT DEMOCRATS WHAT WE DON'T KNOW IS WHETHER THAT WILL BE TRUE IF MR CLINTON SUCCESSFULLY NOW TEACHES THAT IN A GREAT THROBBING MERITOCRATIC PLURALIST DEMOCRACY ONLY SOMETHING FOR SOMETHING WORKS HE MAY STILL THRIVE AMERICANS WILL SAY HE REALLY IS A DIFFERENT DEMOCRAT THAT'S SOMETHING NOT NOTHING MR WATTENBERG IS A SENIOR FELLOW AT THE AMERICAN ENTERPRISE INSTITUTE 9306080121 930608 MOYNIHAN'S PROPOSED MEDICARE CUTS COULD BACKFIRE BY FORCING NEW TAXES BY HILARY STOUT AND RICK WARTZMAN STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON SEN DANIEL MOYNIHAN'S PROPOSAL TO CUT THE MEDICARE PROGRAM BY AN ADDITIONAL 35 BILLION OVER FIVE YEARS COULD FORCE PRESIDENT CLINTON TO SEEK THAT MUCH IN NEW TAXES TO PAY FOR HIS HEALTHCARE PLAN CONSEQUENTLY SEN MOYNIHAN'S EFFORT ULTIMATELY MAY NOT ACHIEVE ITS INTENDED RESULT TO REDUCE MR CLINTON'S PROPOSED TAXES AND RELY MORE ON SPENDING CUTS MR CLINTON'S ADVISERS HAVE BEEN COUNTING ON SIGNIFICANT SAVINGS IN MEDICARE THE FEDERAL HEALTH PROGRAM FOR THE ELDERLY AND DISABLED TO HELP FINANCE THEIR PLAN TO EXTEND HEALTH COVERAGE TO ALL AMERICANS BUT MR MOYNIHAN WANTS TO USE SUCH SAVINGS FOR A DIFFERENT PURPOSE TO HELP SAVE THE PRESIDENT'S DEFICITREDUCTION BILL THE NEW YORK DEMOCRAT WHO IS CHAIRMAN OF THE SENATE FINANCE COMMITTEE SAID OVER THE WEEKEND THAT HE IS LOOKING TO CUT PROJECTED SPENDING ON MEDICARE FAR BEYOND THE MORE THAN 50 BILLION THE PRESIDENT HAS ALREADY PROPOSED IN HIS BUDGET PACKAGE IN DOING SO MR MOYNIHAN HOPES TO SCALE BACK THE ADMINISTRATION'S PROPOSED LEVY ON ENERGY CONSUMPTION AND WIN THE VOTES OF CRITICS WHO SAY THE PRESIDENT'S BUDGET RELIES TOO MUCH ON NEW TAXES YESTERDAY SOME ADMINISTRATION HEALTH OFFICIALS PRIVATELY EXPRESSED ALARM THAT THE MOYNIHAN MOVE COULD JEOPARDIZE THE PRESIDENT'S PLANS TO OVERHAUL THE HEALTH SYSTEM IF THE 35 BILLION IN MEDICARE SAVINGS GOES TOWARD DEFICIT REDUCTION CLINTON AIDES SAID THE ONLY ALTERNATIVES WOULD BE TO MAKE THAT UP IN NEW TAXES OR TO SCALE BACK THE SCOPE OF THE HEALTH PLAN BUT OTHERS SAID THAT IF CONGRESS CAN'T BE PERSUADED TO PASS THE CLINTON DEFICITREDUCTION BILL THERE IS NO HOPE OF EVEN GETTING HEALTHCARE REFORM OFF THE GROUND A PRESIDENCY IS A HURDLE RACE AND YOU HAVE TO JUMP OVER THE FIRST HURDLE ON THE TRACK BEFORE YOU CAN EVEN THINK ABOUT GETTING UP ENOUGH SPEED TO GET OVER THE NEXT HURDLE SAID ROBERT REISCHAUER DIRECTOR OF THE CONGRESSIONAL BUDGET OFFICE JUST HOW MR MOYNIHAN HOPES TO SCALE BACK THE MEDICARE PROGRAM ISN'T ENTIRELY CLEAR EMERGING FROM A MEETING WITH THE PRESIDENT AT THE WHITE HOUSE LAST NIGHT THE SENATOR DECLINED TO BE SPECIFIC WHY DON'T YOU GIVE US A CHANCE TO WORK OUT THESE DETAILS HE TOLD REPORTERS SENATE MAJORITY LEADER GEORGE MITCHELL OF MAINE WHO ALSO WAS IN THE SESSION ALONG WITH VICE PRESIDENT AL GORE TREASURY SECRETARY LLOYD BENTSEN BUDGET DIRECTOR LEON PANETTA AND CHIEF OF STAFF THOMAS MCLARTY DECLINED TO EMBRACE THE MOYNIHAN PLAN INSTEAD SEN MITCHELL SAID HE PLANNED TO TALK TO ALL THE FINANCE COMMITTEE MEMBERS AND FASHION A COMPROMISE DURING A TELEVISION APPEARANCE SUNDAY MR MOYNIHAN INDICATED THAT HE HAD RULED OUT MAKING THE UPPERINCOME ELDERLY PAY HIGHER PREMIUMS FOR THE PORTION OF MEDICARE THAT COVERS DOCTOR BILLS BUT THAT LEFT SOME ADMINISTRATION OFFICIALS WONDERING JUST WHAT THE SENATOR HAD IN MIND ONE NOTION WAS THAT EVERYONE MIGHT BE REQUIRED TO PAY MORE FOR THEIR MEDICARE COVERAGE REGARDLESS OF THEIR INCOME IN A HURRIED HALLWAY INTERVIEW ON CAPITOL HILL YESTERDAY MR MOYNIHAN SUGGESTED THAT HE INTENDED TO GET THE SAVINGS FROM PROVIDERS PRESUMABLY THROUGH LOWER REIMBURSEMENTS TO DOCTORS AND HOSPITALS BUT GIVEN THAT PRESIDENT CLINTON'S PROPOSED MEDICARE SAVINGS OF MORE THAN 50 BILLION RELY MOSTLY ON HITTING PROVIDERS SEVERAL PEOPLE INSIDE AND OUTSIDE THE GOVERNMENT QUESTIONED HOW MUCH MORE WAS POSSIBLE THIS IS GOING TO BE A PUBLIC HANGING FOR PROVIDERS SAID FREDRICK GRAEFE A LOBBYIST FOR HOSPITALS JOHN ROTHER WHO REPRESENTS THE AMERICAN ASSOCIATION OF RETIRED PERSONS SAID HE WORRIES THAT IF THE GOVERNMENT TRIES TO WRING TOO MUCH IN SAVINGS FROM DOCTORS THEY'RE GOING TO HAVE AN OVERWHELMING TEMPTATION NOT TO SEE NEW MEDICARE PATIENTS IN THE END HE ADDED I DON'T THINK YOU CAN GET TO 35 BILLION WITHOUT HAVING DIRECT NEW COSTS ON BENEFICIARIES MOREOVER SOME ARGUE THAT ANY ADDITIONAL MEDICARE CUTS MADE OUTSIDE THE REALM OF THE HEALTHCARE OVERHAUL PLAN WILL ONLY HEIGHTEN THE PROBLEM OF COST SHIFTING WHERE DOCTORS BOOST PRIVATESECTOR FEES TO MAKE UP FOR LOW GOVERNMENT REIMBURSEMENT RATES SO REALLY THIS DOES VERY LITTLE IN CONTAINING OVERALL COSTS SAID RON POLLACK EXECUTIVE DIRECTOR OF FAMILIES USA A CONSUMER GROUP PUSHING FOR HEALTHCARE REVISION FOR THEIR PART CLINTON HEALTH ADVISERS SAID THEY HAVEN'T PINNED DOWN EXACTLY HOW MUCH MEDICARE SAVINGS THEY HAVE BEEN COUNTING ON FOR THE HEALTH PLAN THOUGH SEVERAL INDICATED THE FIGURE IS SIZABLE THE FINAL NUMBER WILL DEPEND ON A SERIES OF OTHER INTERRELATED FINANCING DECISIONS THAT THE PRESIDENT HASN'T YET MADE IN ANOTHER DEVELOPMENT THE AMERICAN MEDICAL ASSOCIATION ALONG WITH MORE THAN 100 OTHER MEDICAL ORGANIZATIONS SENT A LETTER TO HILLARY RODHAM CLINTON DEMANDING THAT THE ADMINISTRATION'S HEALTH PLAN INCLUDE MEDICAL LIABILITY CHANGES SIMILAR TO THOSE ENACTED IN CALIFORNIA IN THE 1970S AMONG OTHER THINGS THE CALIFORNIA PROGRAM LIMITS THE AMOUNT OF DAMAGES A PLAINTIFF CAN COLLECT IN A MALPRACTICE CASE JOHN HARWOOD CONTRIBUTED TO THIS ARTICLE 9306080120 930608 CHINA'S TIDE OF EMIGRANTS BY ANDREW B BRICK SHEKOU CHINA WITH A BEDROLL UNDER ONE ARM AND A PEOPLE'S LIBERATION ARMY RUCKSACK STUFFED WITH FOOD IN THE OTHER 25YEAROLD ZHANG ENLIN AND 44 CABINMATES WAIT PATIENTLY TO BOARD THE SHIP THEY CALL XIWANG THE HOPE A 122FOOT CARGO BOAT BOUND FOR AMERICA OUR NAME FOR THE SHIP IS RIGHT MR ZHANG NERVOUSLY OBSERVES I HOPE WE MAKE IT I WANT TO SEE MTV IN AMERICA THAT THE LETTERS MTV ARE THE ONLY ENGLISH THIS PEASANT FROM THE WESTERN CHINESE PROVINCE OF SICHUAN KNOWS HAS NOT DETERRED HIM FROM HANDING MORE THAN 25000 OF HIS VILLAGE'S MONEY TO A SHETOU OR SNAKEHEAD TO GET SMUGGLED OUT OF CHINA I AM AN INVESTMENT IN THE FUTURE HE SAYS TWO FROM THE VILLAGE HAVE BEEN SENT THE LOCAL COMMUNIST PARTY CHIEF'S SON LEFT LAST JUNE AND NOW THAT I'M DONE WITH MILITARY SERVICE I'M GOING THE MONEY WE MAKE IN THE US WILL HELP SUPPORT FAMILIES BACK HOME IN THE PAST SIX MONTHS MORE THAN A DOZEN VESSELS LIKE THE XIWANG CARRYING AN AVERAGE OF 150 PEOPLE EACH HAVE BEEN SEIZED BY US AUTHORITIES ON SUNDAY MORE THAN 280 ILLEGAL CHINESE IMMIGRANTS WERE ONBOARD A FREIGHTER WHEN IT FOUNDERED OFF ROCKAWAY BEACH ON NEW YORK CITY'S ATLANTIC SHORE AT LEAST EIGHT PEOPLE DIED IN THEIR SWIM FOR FREEDOM AND OTHERS WERE SERIOUSLY INJURED LAST WEDNESDAY 270 ILLEGAL CHINESE IMMIGRANTS WERE SEIZED TRYING TO SNEAK INTO CALIFORNIA BY TRAWLER TO A PERSON THE XIWANG PASSENGERS ALMOST ALL OF WHOM ARE SICHUANESE INSIST THAT THEIR SNAKEHEAD A BOISTEROUS AND BLOATED MAN EVERYONE CALLS PANG HUA FAT FLOWER IS REASONABLE PANG HUA HIMSELF HAS COME WITH THEM TO AN ISOLATED POLLUTED BEACH OUTSIDE SHEKOU A BOOMTOWN IN SOUTHEAST CHINA'S GUANGDONG PROVINCE 34 MILES NORTHWEST OF HONG KONG TO OVERSEE THEIR DEPARTURE HE COACHES HIS HUMAN CARGO TO CLAIM POLITICAL ASYLUM IF CAUGHT ENTERING THE US INSTRUCTING SAY YOU'VE COME AT THE INVITATION OF THE AMERICAN CONGRESS IT WILL WORK TRUST ME TRUST DOES NOT ENTER INTO THIS A 22YEAROLD WOMAN MISS XUE SAYS WHEN ASKED IF SHE THINKS MR PANG CAN DELIVER ON HIS PROMISE THIS STAGE IS JUST MONEY HER BROTHER PAID ALMOST 40000 FOR HIS PASSAGE TO AMERICA HE WAS DESPERATE TO GO SHE SAYS THERE'S NO OPPORTUNITY FOR SO MANY OF US IN THE COUNTRYSIDE AND THE MARKET FOR WORK HERE IN GUANGDONG PROVINCE IS FULL LIKE HIM I AM GETTING SUCKED OUT OF CHINA WHILE THERE IS NO SIGN THAT FLOODS OF REFUGEES ARE CURRENTLY LEAVING CHINA THERE IS A STREAM STEADY ENOUGH TO KEEP IMMIGRATION OFFICIALS BUSY IN THE FAVORITE PORTS OF CALL THE US AUSTRALIA AND JAPAN JAPANESE OFFICIALS SAY THAT MORE THAN 3000 ILLEGAL CHINESE IMMIGRANTS TRIED TO ENTER THEIR COUNTRY LAST YEAR IMMIGRATION OFFICERS BELIEVE 3500 SNUCK INTO AUSTRALIA THE US IMMIGRATION AND NATURALIZATION SERVICE SAYS IT HAS INTERCEPTED BOATS CARRYING 2500 CHINESE IN THE PAST 18 MONTHS AND 1800 ALREADY THIS YEAR STILL SAYS 65YEAROLD LI ZHANG AMERICA IS BEST MR LI HAS NO TEETH AND WEARS A WORN SWEATSTAINED TSHIRT HE IS ENTHUSIASTIC ABOUT HIS JOURNEY I'M GOING TO THE HOME OF RONALD REAGAN KOJAK AND LI SHENHUI LI SHENHUI THAT'S MY SON HE'S PAYING MY WAY BECAUSE AMERICA WON'T GIVE ME A VISA HE HAS A ROOM READY FOR ME IN CALIFORNIA THIS IS THE CALIFORNIA GOLD RUSH OF 1993 A SON LEAVES IN SEARCH OF A BETTER LIFE SO HIS FATHER FOLLOWS FOUR MEMBERS OF A FACTORY CREW HEAD TO AMERICA SO OTHER MEMBERS FACING LONGER HOURS AND WORSE CONDITIONS IN THE LOCAL STATERUN INDUSTRY FOLLOW THEM AND PERHAPS MOST FRIGHTENING FOR BEIJING RURAL COMMUNIST PARTY CADRES START SENDING THEIR CHILDREN ABROAD ILLEGALLY TO EARN HARD CURRENCY SO THE FAMILY BACK HOME CAN SURVIVE MAO'S LONG MARCH WENT IN THE WRONG DIRECTION MR LI OFFERS REFERRING TO MAO TSETUNG'S FAMOUS RETREAT BY FOOT DURING THE CHINESE CIVIL WAR ALMOST SIX DECADES AGO DENG XIAOPING'S LONG MARCH FLOATS ACROSS THE PACIFIC I CAME TO SOUTHERN CHINA AND WAS NEVER ASKED FOR MY PAPERS SAYS MISS XUE THAT WOULD NOT HAVE HAPPENED 10 YEARS AGO MY DANWEI OR WORK UNIT THE PRINCIPAL MEANS OF STATE CONTROL ENCOURAGED ME TO GO MAKE A LIFE FOR YOURSELF THEY TOLD US GO TO SOUTHERN CHINA WELL EVERYONE GOES TO SOUTHERN CHINA SO I'M GOING TO TRY AMERICA SHE SAYS THE CHINESE WORD FOR AMERICA MEIGUO WITH RELISH MISS XUE ADDS NO ONE IS IN CONTROL IN CHINA COMMUNISM IS DEAD NO ONE CARES ABOUT THE PARTY PEOPLE WANT TO NONG QIAN PEOPLE WANT TO EARN MONEY THESE PASSENGERS ARE MR DENG'S LEGACY PROOF THAT ONCE COMMUNIST REGIMES ENTER INTO MEANINGFUL ECONOMIC REFORM THEY ENTER INTO THEIR LAST STAGE THIS IS BECAUSE REFORM REPLETE WITH DECENTRALIZED ECONOMIC DECISION MAKING MAKES THE REGIME POROUS AT THE VERY LEAST CHINA NO LONGER POSSESSES THE REQUISITES FOR A TOTALITARIAN IMPULSE A STATIC SOCIAL ECONOMIC AND POLITICAL ENVIRONMENT AS IF TO PROVE THE POINT ZHANG ENLIN PULLS OUT OF HIS PLA RUCKSACK A SONY DISCMAN HE WILL LIVE IN SQUALID CONDITIONS IN A BOAT'S HULL FOR AT LEAST THREE WEEKS WITH LITTLE WATER AND ONLY THE FOOD HE BRINGS ABOARD YET HE INTENDS TO PASS THE TIME LISTENING TO THE IRISH BAND U2 ON A COMPACTDISK PLAYER IT WAS A GIFT FROM MY AUNT AND UNCLE HE SAYS IN TODAY'S CHINA MODERNITY IS ACCELERATING THE SPREAD OF INFORMATION AS WELL AS THE CIRCULATION OF PEOPLE AND THERE IS LITTLE BEIJING CAN DO TO STOP IT CHINESE FOREIGN MINISTRY SPOKESMAN WU JIANMIN SEEMED TO ACKNOWLEDGE THIS ON JUNE 3 SAYING THAT CHINA NEEDED INTERNATIONAL COOPERATION TO STEM THE HUMAN TIDE GLOATS THE SNAKEHEAD PANG HUA BEIJING CAN'T TOUCH ME AND PROVINCIAL AUTHORITIES WANT TO HUG ME I PERFORM A SERVICE I HELP THE LOCAL ECONOMY BY REDUCING THE AREA'S POPULATION PROBLEM THERE ARE SAID TO BE SOME THREE MILLION PEOPLE FROM SICHUAN LIVING IN GUANGDONG PROVINCE TODAY AND IF STATISTICS OFFERED BY SMUGGLERS LIKE PANG HUA ARE ACCURATE TRANSPORTING SOME TO THE LANDS OF THEIR DREAMS IS A 3 BILLION A YEAR BUSINESS THANKFULLY SUPPLY AND DEMAND ARE ENDLESS LAUGHS PANG HUA AS HE PROUDLY EXHIBITS CRATES OF HENNESSY XO BRANDY HE'LL USE TO BRIBE SHEKOU IMMIGRATION OFFICIALS TO ENSURE PASSAGE THROUGH CHINESE WATERS BUT SNAKEHEADS WILL KEEP THE SHIPMENTS OF BOAT PEOPLE TO A MINIMUM HE SAYS FOR FEAR OF NEGATIVE INTERNATIONAL REACTION KEEP POLITICS OUT OF BUSINESS DECLARES MR PANG THERE'S NO MONEY IN IT OTHERWISE UNDOUBTEDLY THAT IS ONE BUSINESS CALCULATION FOR WHICH IMMIGRATION OFFICIALS IN NEW YORK AND CALIFORNIA CAN BE THANKFUL AS WELL MR BRICK IS DEPUTY EDITORIAL PAGE EDITOR OF THE ASIAN WALL STREET JOURNAL 9306080119 930608 WHO'S NEWS BMW OF NORTH AMERICA INC BMW OF NORTH AMERICA INC WOODCLIFF LAKE NJ JAMES L MCDOWELL 40 YEARS OLD WAS NAMED VICE PRESIDENT MARKETING FOR BAYERISCHE MOTOREN WERKE AG'S US SALES ARM HE SUCCEEDS VICTOR H DOOLAN 52 WHO WAS NAMED PRESIDENT OF BMW'S US SALES AND MARKETING GROUP LAST WEEK MR MCDOWELL JOINED BMW IN ITS PLANNING GROUP EARLIER THIS YEAR PREVIOUSLY HE WAS PORSCHE AG'S MARKETING DIRECTOR IN STUTTGART GERMANY 9306080118 930608 WHO'S NEWS TRAVELERS CORP NAMES TWO OFFICIALS TO LEAD REALESTATE INVESTMENT HARTFORD CONN TRAVELERS CORP NAMED TWO EXECUTIVES TO HEAD ITS 12 BILLION REALESTATE INVESTMENT ARM ROBERT W CRISPIN 46 YEARS OLD WAS NAMED CHAIRMAN OF TRAVELERS REALTY INVESTMENT CO AND DAVID C GRAVES 42 WAS NAMED PRESIDENT THE UNIT MANAGES A PORTFOLIO OF URBAN AND AGRICULTURAL MORTGAGES AS THE UNIT'S TOP EXECUTIVES THEY SUCCEED ALLAN D SCHUSTER 51 SENIOR VICE PRESIDENT OF TRAVELERS AND CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF THE REALESTATE COMPANY WHO HAS SAID HE INTENDS TO LEAVE THE COMPANY AND PURSUE OTHER OPTIONS MR CRISPIN WHO WILL CONTINUE AS VICE CHAIRMAN AND CHIEF INVESTMENT OFFICER OF THE PARENT WILL HAVE OVERALL RESPONSIBILITY FOR THE REALESTATE COMPANY IN HIS NEW ROLE AS CHAIRMAN MR GRAVES WHO HAD BEEN BUSINESS HEAD FOR INVESTMENT MANAGEMENT AND RECOVERY WILL BE RESPONSIBLE FOR DAYTODAY MANAGEMENT OF TRAVELERS REALESTATE LOAN AND EQUITY INVESTMENTS THROUGHOUT THE US THE COMPANY WHICH SOLD MORE THAN 64 MILLION IN FORECLOSED REAL ESTATE IN THE FIRST FIVE MONTHS THIS YEAR SAID IT EXPECTS TO SEE SIGNIFICANT SALES IN THE THIRD AND FOURTH QUARTERS IT SOLD 285 MILLION IN FORECLOSED REAL ESTATE IN 1992 CURRENTLY IT HAS MORE THAN 2 BILLION OF FORECLOSED REAL ESTATE ON ITS BOOKS 9306080117 930608 WHO'S NEWS TYCO LABORATORIES INC TYCO LABORATORIES INC EXETER NH DAVID P BROWNELL 49 WAS NAMED A VICE PRESIDENT OF THIS MAKER OF FIRE PROTECTION SYSTEMS AND FLOW CONTROL PRODUCTS MR BROWNELL WILL BE RESPONSIBLE FOR COORDINATION OF WORLDWIDE MARKETING ACTIVITIES ADVERTISING/PUBLIC RELATIONS GOVERNMENT AFFAIRS AND HUMAN RESOURCES HE MOST RECENTLY WAS EXECUTIVE VICE PRESIDENT OF TYCO'S FLOW CONTROL DIVISION 9306080116 930608 PEPPERAND SALT IS POLITICALLY SUSPECT IT IS UP FROM DOWN TEN 9306080115 930608 WHO'S NEWS LIFE PARTNERS GROUP INC LIFE PARTNERS GROUP INC DALLAS GREGORY J PALMQUIST CHIEF FINANCIAL OFFICER WAS NAMED TO THE ADDITIONAL POSITIONS OF PRESIDENT AND CHIEF OPERATING OFFICER OF THE COMPANY'S THREE WHOLLY OWNED LIFE INSURANCE SUBSIDIARIES MASSACHUSETTS GENERAL LIFE PHILADELPHIA LIFE AND WABASH LIFE MR PALMQUIST 37 YEARS OLD SUCCEEDS LEE BAKER 58 WHO RETIRED MR PALMQUIST WILL BE RESPONSIBLE FOR MARKETING INSURANCE OPERATIONS AND FINANCIAL OPERATIONS 9306080114 930608 EXSTRIKERS REJOIN MINE AS IT AGREES TO QUIT BCOA THE FIRST STRIKING MEMBERS OF THE UNITED MINE WORKERS RETURNED TO WORK YESTERDAY AT THE NATION'S THIRD LARGEST COAL PRODUCING COMPANY AS IT ANNOUNCED PLANS TO LEAVE THE BITUMINIOUS COAL OPERATORS' ASSOCIATION MORE THAN 400 STRIKERS REJOINED AMAX INC AT ITS ILLINOIS WABASH COAL MINE AFTER THE COMPANY AGREED TO LEAVE THE BCOA WHICH NOW REPRESENTS 11 MEMBER COAL COMPANIES AMAX DROPPED ITS MEMBERSHIP IN EXPECTATION OF ITS PLANNED ACQUISITION BY CYPRUS MINERALS CO BECAUSE CYPRUS IS NOT A BCOA MEMBER SAID JERRY COOPER AMAX SPOKESMAN AMAX AGREED THAT ITS 1700 UNION EMPLOYEES WILL BE PROTECTED AFTER THE ACQUISITION IS COMPLETED NOW 8800 UMW MINERS ENTER THEIR FIFTH WEEK ON STRIKE AS THE UNION BATTLES WITH THE BCOA MEMBERS OVER CONTRACT SECURITY FOR UNION WORKERS 9306080113 930608 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN COMMUNITY FINANCE MINISTERS FAILED TO COME UP WITH NEW IDEAS FOR STIMULATING THE REGION OUT OF RECESSION THE 12 MEMBERS' ECONOMIES WHICH THE EC COMMISSION HAD ESTIMATED WOULD GROW 08 THIS YEAR COULD FALL 03 THE EC UNEMPLOYMENT RATE WHICH ROSE TO 104 IN APRIL FROM 103 IN MARCH AND 94 A YEAR EARLIER MIGHT EXCEED 11 NEXT YEAR OR A TOTAL OF 20 MILLION PEOPLE THOUGH GDP COULD BEGIN EXPANDING MODESTLY NEXT YEAR A RECOVERY IS UNLIKELY TO EMERGE UNTIL THE 1994 SECOND HALF NONETHELESS OFFICIALS DIDN'T INDICATE ANY PLANS TO BOLSTER THE EC ECONOMIC STIMULUS PACKAGE AT A COPENHAGEN SUMMIT IN TWO WEEKS THE EC HOPES THE PACKAGE WILL ADD 35 BILLION EUROPEAN CURRENCY UNITS 42 BILLION IN INVESTMENT THROUGH EC AND NATIONAL PROGRAMS BUDGETARY RESTRAINTS ALLOW LITTLE ROOM FOR FURTHER GOVERNMENT SPENDING THOUGH OUTLAYS COULD BE SHIFTED TOWARD CAPITAL INVESTMENT MEANWHILE THE FINANCE MINISTERS DIDN'T NARROW DIFFERENCES OVER A PROPOSED ENERGY TAX AND FAILED TO AGREE ON VALUEADDED TAX RATES FOR USED GOODS BRITISH CONSUMER BORROWING IN APRIL ROSE STRONGLY FROM A YEAR EARLIER FOR THE SECOND MONTH IN A ROW BOOSTING CONFIDENCE THAT THE ECONOMY IS CLIMBING SWIFTLY OUT OF RECESSION NET LENDING TOTALED 194 MILLION 2926 MILLION FOLLOWING MARCH'S REVISED 196 MILLION AT THE HIGH END OF EXPECTATIONS DURING THE RECESSION LENDING HAD DROPPED BY AS MUCH AS 100 MILLION A MONTH BUT CONSUMERS CHIPPED AWAY AT BANK CREDITCARD DEBT REPAYING 35 MILLION AND REDUCING NEW CHARGES TO 276 BILLION IN APRIL FROM 297 BILLION IN MARCH WITH LOWER MORTGAGE RATES HIGHER DISPOSABLE INCOMES ALLOW FASTER DEBT REPAYMENT TAIWAN WILL OFFER INCENTIVES TO BOOST ECONOMIC DEVELOPMENT AND STEM THE FLIGHT OF BUSINESSES ABROAD TO SEEK LOWER LABOR AND PROPERTY COSTS THE PACKAGE TO BE COMPLETED THIS MONTH MAY INCLUDE TAX ADVANTAGES FOR HIGHTECHNOLOGY FIRMS LOWPRICED SALES OF GOVERNMENT LAND AND AN EXPANDED MONEY SUPPLY TO MAKE MORE CREDIT AVAILABLE THE MOVES ARE AIMED AT HELPING TO ACHIEVE ANNUAL GROWTH TARGETS OF UP TO 7 FOR THE ECONOMY AND 12 FOR PRIVATE INVESTMENT OVER THREE YEARS ZAMBIA COMPLETED THE FIRST TWO SALES UNDER ITS PRIVATIZATION PROGRAM ZAMBIAN BUSINESSES BOUGHT A MOTORVEHICLE REPAIR AND PARTS FIRM AND A TRAVEL AGENCY SEVENTEEN MORE ENTERPRISES ARE TO BE SOLD BY YEAR END IN THE NEXT FIVE YEARS ZAMBIA PLANS TO SELL MORE THAN 150 STATE ENTERPRISES REPRESENTING 80 OF THE ECONOMY LATER SELLOFFS ARE TO INCLUDE BIG COMPANIES INCLUDING MANUFACTURERS FARMS NEWSPAPERS AN AIRLINE AND COPPER MINER THE GOVERNMENT SAID IG METALL GERMANY'S BIGGEST TRADE UNION WITH 35 MILLION MEMBERS NOMINATED ITS VICE PRESIDENT KLAUS ZWICKEL THE CHIEF WAGE NEGOTIATOR AND A PROMINENT LABOR ORGANIZER TO BE PRESIDENT HE WOULD SUCCEED FRANZ STEINKUEHLER WHO RESIGNED TWO WEEKS AGO AFTER HE ACKNOWLEDGED PROFITING FROM SPECULATION IN SHARES OF COMPANIES LINKED TO DAIMLERBENZ AG WHEN HE HAD A DAIMLER BOARD SEAT WHICH HE ALSO GAVE UP THE NOMINATION OF MR ZWICKEL 54 YEARS OLD REQUIRES APPROVAL BY UNION MEMBERS AT AN OCTOBER CONGRESS THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT'S PRESIDENT CALLED ON US BANKS TO COFINANCE THE LENDER'S INVESTMENT PROJECTS JACQUES ATTALI TOLD THE US CHAMBER OF COMMERCE IN LONDON THAT US BANKS FEAR POLITICAL RISK IN BACKING DEVELOPMENT IN CENTRAL AND EASTERN EUROPE HE EXPRESSED HOPE THAT AMERICAN BANKS WILL SOON SEE THE POTENTIAL AND BEGIN TO INVEST THEY MUST BEGIN TO SHARE THE BURDEN WITH THEIR EUROPEAN COUNTERPARTS MR ATTALI LAMBASTED RECENTLY FOR LAVISH SPENDING IS SAID TO BE PREPARING A PLAN TO CUT ADMINISTRATIVE COSTS GERMANY'S POSITION AS A TOP GLOBAL PRODUCER OF CAPITAL GOODS PARTICULARLY IN HIGH TECHNOLOGY IS IN PERIL ECONOMICS MINISTER GUENTER REXRODT SAID AS HIS MINISTRY PREPARES A PROGRAM TO SECURE THE COUNTRY'S FUTURE AS A BUSINESS HUB HE SAID GERMANY SHOULD SHORE UP ITS SLIPPING STATUS AS A CENTER FOR INDUSTRIAL TECHNOLOGY SUCH AS THE MICROELECTRONICS AND GENETIC AND NUCLEAR ARENAS HE BLAMED POLITICAL AND BUREAUCRATIC PITFALLS AND HIGH WAGES AND TAXES FOR A DROP IN GERMANY'S SHARE OF THE WORLD HIGHTECH MARKET TO 146 IN 1990 FROM 161 IN 1970 WHILE JAPAN'S CLIMBED TO 191 FROM 12 GERMANY HE SAID SHOULD PROMOTE PUBLIC USE OF TECHNOLOGY ENCOURAGE DIALOGUE ON TECHNOLOGY ISSUES AMONG GOVERNMENT INDUSTRY AND SCIENCE CUT COST BARRIERS FOR INVESTORS ALLOW MORE FLEXIBLE WORKING HOURS AND IMPROVE INFRASTRUCTURE PARTICULARLY TELECOMMUNICATIONS HUNGARY DEVALUED ITS FORINT CURRENCY 19 AGAINST A BASKET OF THE US DOLLAR AND THE EUROPEAN CURRENCY UNIT NEW OFFICIAL RATES WEREN'T SPECIFIED THE FORINT WHICH HAD TRADED AT 8759 TO THE DOLLAR WAS LAST DEVALUED BY 29 ON MARCH 26 A TRIBAL CHIEF IN SWAZILAND A SMALL MOUNTAIN KINGDOM IN SOUTHERN AFRICA RULED BY CHIEFS BANNED WOMEN FROM WEARING PANTS IN HIS DISTRICT NEAR MBABANE THE CAPITAL SAYING TRADITION DICTATES WEARING DRESSES 9306080112 930608 JOHN H HARLAND SETS BUYBACK ATLANTA JOHN H HARLAND CO SAID IT PLANS TO REPURCHASE AS MANY AS 34 MILLION OF ITS COMMON SHARES THE COMPANY WHICH PRINTS CHECKS AND PROVIDES DATA SERVICES SAID THE PERIODIC PURCHASES WILL BE MADE IN CASH ON THE OPEN MARKET OR IN PRIVATE TRANSACTIONS THE NUMBER REPRESENTS APPROXIMATELY 10 OF THE SHARES OUTSTANDING HARLAND SAID ANY SHARES REPURCHASED MAY BE HELD IN THE TREASURY OR USED FOR ACQUISITIONS OR FOR OTHER CORPORATE PURPOSES 9306080111 930608 EVEN STARS' HOMES ARE HIT BY SLUMP IN HOUSING PRICES BEVERLY HILLS MANSION MARKET HAS THE RICH AND FAMOUS CRYING IN THEIR PELLIGRINO BY JIM CARLTON STAFF REPORTER OF THE WALL STREET JOURNAL BEVERLY HILLS CALIF WHAT DO MICHAEL J FOX CHER AND PIA ZADORA ALL HAVE IN COMMON THEY ALL HAVE LOST OR SOON WILL HAVE AT LEAST A MILLION BUCKS EACH IN SELLING THEIR HOMES IN BEVERLY HILLS AND ENVIRONS A WHILE AGO ZSA ZSA GABOR GOT A 9 MILLION OFFER FOR HER SPRAWLING BELAIR MANSION EASILY INSULTED SHE WAS INSULTED THAT IS 6 MILLION LESS THAN SHE IS ASKING AT LEAST SHE ISN'T FACING A LOSS AND SHE IS IN NO PARTICULAR HURRY TO BE RID OF THE PLACE STILL MISS GABOR IS RELUCTANT TO FACE REALITY SHE HAS BEEN TRYING TO SELL HER BELAIR ESTATE ON AND OFF FOR THE PAST FOUR YEARS SHE WANTS 15 MILLION WHICH REALESTATE AGENTS THINK IS AT LEAST 6 MILLION MORE THAN IT WILL FETCH WHEN YOU VANT TO SELL YOU CAN NEVER SELL MISS GABOR COMPLAINS IN HER EXAGGERATED HUNGARIAN ACCENT SHE BOUGHT THE PLACE 15 YEARS AGO FOR A MERE 500000 SO SHE COULD AT LEAST THEORETICALLY AFFORD TO TAKE OR LEAVE A 9 MILLION OFFER BUT SHE DOES WANT TO MOVE TO HER 30ACRE RANCH WHERE SHE HAS HER 58 HORSES AND TWO GERMAN SHEPHERDS I'M VERY EMOTIONAL ABOUT HOUSES SHE SAYS HOUSING PRICES HERE ARE IN THE TANK AND NOBODY SCRIPTED THIS REALESTATE VALUES IN BEVERLY HILLS' STORIED 90210 ZIP CODE HAVE PLUNGED AS MUCH AS 40 IN THE PAST THREE YEARS AND THEY ARE OFF AS MUCH FOR FABULOUS HOMES IN BRENTWOOD AND MALIBU SOME OF THE BIGGEST NAMES IN SHOW BUSINESS ARE CRYING IN THEIR SAN PELLIGRINO WATER YES THEY CARE IF FOR NO OTHER REASON THAN EGO SAYS MIKE SILVERMAN WHO CALLS HIMSELF THE BROKER TO THE STARS HIS CLIENTELE OVER THE YEARS HAS RANGED FROM KIRK DOUGLAS TO THE LATE CARY GRANT SELLERS HE SAYS DON'T WANT TO ADMIT THEY MADE A WRONG MOVE MOST LOCAL CELEBRITIES USE REALESTATE INVESTMENTS AS A MAJOR PART OF THEIR PORTFOLIOS SO THE POTENTIAL LOSS IS NO JOKE EVEN FOR PEOPLE WHO SEEM TO HAVE MONEY TO BURN MANY CELEBRITY SELLERS AREN'T IN THE MOOD TO WAIT FOR PRICES TO REBOUND DAVID WOLPER THE PRODUCER OF ROOTS AND THE 1984 LOS ANGELES SUMMER OLYMPICS OPENING AND CLOSING CEREMONIES HAS SLASHED TO 49 MILLION FROM 79 MILLION THE ASKING PRICE ON HIS FRENCH COUNTRY ESTATE OVERLOOKING THE GOLF COURSE AT THE BELAIR COUNTRY CLUB THE GATED MANSION INCLUDES HIS AND HERS CLOSETS 700SQUAREFEET FOR HIS 1000SQUAREFEET FOR HERS A TWOSTORY PROJECTION ROOM AND A GEORGES BRAQUE MOSAIC SET INTO A WALL MR WOLPER PAID 15 MILLION FOR THE ESTATE 15 YEARS AGO AND SINCE THEN HE HAS PUT IN AT LEAST 2 MILLION IN IMPROVEMENTS SAYS MR SILVERMAN HIS BROKER WHAT WITH ANTICIPATED CLOSING COSTS AND COMMISSIONS HE STANDS TO BREAK EVEN AT BEST A DEPRESSION BABY MR WOLPER 65 SAYS HE ISN'T SHOCKED BY DECLINING VALUES I KNOW THINGS GO UP AND DOWN HE SAYS NEVERTHELESS HE SAYS I'D LIKE TO SELL MY HOUSE FOR WHAT I PUT INTO IT EAGER TO FLEE CALIFORNIA CHER THE SINGERACTRESS HAS CHOPPED THE ASKING PRICE ON HER FIVEBEDROOM OCEANVIEW MALIBU HOUSE TO 495 MILLION FROM THE 65 MILLION SHE SOUGHT A YEAR AGO ACCORDING TO BROKERS CHER INVESTED 62 MILLION IN THE PROPERTY SHE BOUGHT ABOUT THREE YEARS AGO AND IS LIKELY TO END UP LOSING AT LEAST 125 MILLION UNFORTUNATELY FOR ACTORCOMEDIAN EDDIE MURPHY HE BOUGHT THE BEVERLY HILLS HOME CHER VACATED THREE YEARS AGO FOR MORE THAN 6 MILLION NOW HE WANTS TO GET OUT TOO IN FACT HE HAS BEEN TRYING TO SELL THE SPREAD FOR TWO YEARS REDUCING THE PRICE TO 59 MILLION FROM THE 8 MILLION HE WAS ASKING FOR THREE ACRES A MOAT AND A MOROCCAN VILLA WITH A ROOF THAT OPENS TO THE HEAVENS THIS WAS JUST A SECOND HOME SAYS BARBARA ROBINSON A REALTOR HANDLING THE LISTING FOR HIM ACTOR MICHAEL J FOX WHO WANTS TO SPEND MORE OF HIS TIME ON THE EAST COAST RECENTLY DUMPED HIS 5000SQUAREFOOT TWOSTORY FAMILY TRADITIONAL HOME IN BELAIR FOR ABOUT 26 MILLION LOSING 14 MILLION ON A THREEYEAR INVESTMENT AND PITY POOR PIA ZADORA THE ACTRESS MARRIED TO FINANCIER MESHULAM RIKLIS THE COUPLE ARE OFFERING THEIR HILLTOP ESTATE IN THE GATED SUBDIVISION OF BEVERLY PARK FOR 51 MILLION A STEEP REDUCTION FROM THE 65 MILLION THEY WERE ASKING JUST NINE MONTHS AGO PHENOMENAL VALUE THE ESSENCE OF STYLE AND PRESTIGE SAYS AN AD FOR THE 9000SQUAREFOOT MANSE AND ITS TENNIS COURT MR RIKLIS AND HIS WIFE BOUGHT IT FOR MORE THAN 6 MILLION AND ARE MOVING INTO A BIGGER PLACE DOWN THE ROAD CRUISING THE PALMLINED BOULEVARDS OF BEVERLY HILLS MR SILVERMAN POINTS OUT THE TWOSTORY MANSION OF THE LATE LUCILLE BALL WHICH HE SAYS IS BEING SOLD FOR MORE THAN 3 MILLION LESS THAN HALF THE ORIGINAL ASKING PRICE TO BE SURE BEVERLY HILLS AND ITS ENVIRONS ARE IN NO DANGER OF BECOMING A SLUM THE PRICE OF A STARTER HOME STILL BEGINS AT ABOUT 500000 AND HUGE ESTATES EVEN TODAY CAN SELL FOR 30 MILLION THIS IS STILL THE KIND OF MARKET WHERE BROKERS TOOLING AROUND IN THEIR BMWS OCCASIONALLY MAKE ALLCASH DEALS THAT CLOSE IN FIVE DAYS BUT WHAT HAS HAPPENED TO PROPERTIES HERE REFLECTS TO A GROTESQUELY EXAGGERATED DEGREE THE COLLAPSE OF THE CALIFORNIA HOUSING MARKET GENERALLY HOUSING PRICES IN MUCH OF THE GOLDEN STATE HAD GONE UP AND UP FOR NEARLY 20 YEARS WITH OCCASIONALLY HUGE SPECULATIVE BURSTS THE HIGHESTPRICED HOMES IN AND AROUND BEVERLY HILLS SHOT UP THE MOST THAT ALAS SET THEM UP FOR THE BIGGEST FALL WHEN THE STATE'S ECONOMY IMPLODED IN 1990 STARS SEEM NOT TO HAVE FORESEEN THE CRASH MANY THOUGHT THE SKY WAS THE LIMIT AND DIDN'T REALIZE THAT VALUES WERE BECOMING ARTIFICIALLY BLOATED SAYS LINDA MAY VICE CHAIRMAN OF FRED SANDS ESTATES WHICH HANDLES MANY CELEBRITY TRANSACTIONS THOUGH PRICES MAY WELL DIP FURTHER SOME BOTTOM FISHERS CURRENTLY ARE JUMPING INTO THE MARKET THEY INCLUDE FOREIGN INVESTORS WEALTHY INDUSTRIALISTS AND CELEBRITIES LIKE ACTOR RICHARD GERE AND HIS WIFE MODEL CINDY CRAWFORD WHO A FEW WEEKS AGO MADE OFF WITH A BELAIR ESTATE AT THE BARGAIN PRICE OF ABOUT 45 MILLION I HAVE SOLD SEVEN HOUSES IN THE LAST FIVE WEEKS WHICH IS ABOUT WHAT I SOLD IN SIX MONTHS LAST YEAR SAYS CELEBRITY REALESTATE AGENT ELAINE YOUNG INDEED MR SILVERMAN AND OTHERS CALL THIS THE BEST BUYER'S MARKET IN 30 YEARS AND THEY BELIEVE HOLLYWOOD'S ETERNAL APPEAL THROUGHOUT THE WORLD WILL CAUSE PRICES TO REBOUND SAYS JOYCE REY COFOUNDER OF RODEO REALTY ESTATES DIVISION OF PRUDENTIAL CALIFORNIA REALTY THE GOOD NEWS IS THAT THIS IS THE CENTER OF SHOW BUSINESS AND NOW IT HAS BECOME MORE AFFORDABLE 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 9306080110 930608 FORMER STOCK TRADER FOR FIDELITY RECEIVES PRISON SENTENCE FINES BOSTON A FORMER STOCK TRADER FOR FIDELITY INVESTMENTS WAS SENTENCED TO FIVE MONTHS IN PRISON AND ORDERED TO PAY RESTITUTION AND FINES TOTALING 115185 FOR DEFRAUDING MARKET MAKERS KEN L ANDERSON BROOKLINE MASS EARLIER PLEADED GUILTY TO 56 COUNTS OF SECURITIES FRAUD ACCORDING TO THE US ATTORNEY'S OFFICE IN BOSTON MR ANDERSON 32 YEARS OLD ASKED MARKET MAKERS TO ACCEPT FICTITIOUS TRADES HE CLAIMED TO HAVE MADE IN A FRIEND'S ACCOUNT AT PRICES THAT WERE MORE FAVORABLE THAN MARKET PRICES WHEN MARKET MAKERS RECEIVED REPORTS SHOWING TRADES FOR WHICH THEY HAD NO RECORD MR ANDERSON PERSUADED THEM THAT THEY HAD MADE AN ERROR AND SHOULD ACCEPT THE TRADES HE WAS FIRED AFTER FIDELITY DISCOVERED THE SCHEME IN OCTOBER 1991 IN ADDITION TO FIVE MONTHS IN PRISON MR ANDERSON WAS SENTENCED TO TWO YEARS OF SUPERVISED RELEASE DURING WHICH HE MUST SERVE FIVE MONTHS OF HOME CONFINEMENT AND MUST COMPLETE 200 HOURS OF COMMUNITY SERVICE HE WAS ORDERED TO PAY FULL RESTITUTION OF 83385 TO THE MARKET MAKERS HE DEFRAUDED RESTITUTION OF 15000 TO FIDELITY A FINE OF 14000 AND A SPECIAL ASSESSMENT OF 2800 MR ANDERSON SAID AT THE SENTENCING THAT HE ALREADY HAS PAID RESTITUTION TO THE MARKET MAKERS AND TO FIDELITY MR ANDERSON DIDN'T RETURN A TELEPHONE CALL SEEKING COMMENT 9306080109 930608 SCHOOL POLICY ON RELIGION IS STRUCK DOWN HIGH COURT SAYS EXCLUDING CHURCH GROUP ACTIVITIES VIOLATES SPEECH RIGHTS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID RELIGIOUS GROUPS MAY SOMETIMES MEET AFTER HOURS ON PUBLIC SCHOOL PROPERTY A UNANIMOUS HIGH COURT STRUCK DOWN A NEW YORK SCHOOL DISTRICT POLICY OF EXCLUDING RELIGIOUS ACTIVITIES WHILE ALLOWING A WIDE RANGE OF OTHER CIVIC AND RECREATIONAL MEETINGS THIS TYPE OF EXCLUSION VIOLATES THE FIRST AMENDMENT FREESPEECH RIGHTS OF RELIGIOUS GROUPS THE JUSTICES SAID YESTERDAY'S DECISION ADDRESSED ONLY ONE OF A NUMBER OF DISPUTES OVER RELIGION AND SCHOOLS THAT CONTINUE TO PERCOLATE AROUND THE COUNTRY IN A SEPARATE ACTION THE JUSTICES LET STAND A FEDERAL APPEALS COURT RULING THAT ALLOWED STUDENTLED PRAYER AT PUBLIC SCHOOL GRADUATION CEREMONIES THE LOWER COURT RULING APPLIES ONLY IN LOUISIANA TEXAS AND MISSISSIPPI AND IT IS LIKELY THAT SUCH A CASE WILL BE BACK BEFORE THE SUPREME COURT IN THE NEAR FUTURE LAST YEAR A SHARPLY DIVIDED HIGH COURT SAID PRAYER ORGANIZED BY SCHOOL OFFICIALS AND DELIVERED BY OUTSIDE CLERGY AT GRADUATION IS UNCONSTITUTIONAL IN YET ANOTHER VARIATION OF THE CHURCHSTATE FIGHT THE HIGH COURT IS EXPECTED TO RULE WITHIN THE NEXT FEW WEEKS ON THE QUESTION OF WHETHER PUBLIC SCHOOL SYSTEMS MAY PROVIDE SIGNLANGUAGE INTERPRETERS FOR DEAF STUDENTS WHO ATTEND PAROCHIAL SCHOOLS IN THE NEW YORK CASE THE JUSTICES SAID AUTHORITIES MAY EXCLUDE ALL PRIVATE GROUPS FROM USING SCHOOL FACILITIES BUT IF A STATE OR LOCALITY ALLOWS SECULAR GROUPS TO HOLD MEETINGS AFTER SCHOOL HOURS IT MUST TREAT RELIGIOUS GROUPS EQUALLY THE HIGH COURT SAID THE JUSTICES SAID THE TOWN OF CENTER MORICHES ON LONG ISLAND ACTED IMPROPERLY WHEN IT APPLIED A STATE RULE PROHIBITING RELIGIOUS USES OF PUBLIC SCHOOLS TO BAR AN EVANGELICAL CHURCH FROM SHOWING CHRISTIANORIENTED FILMS ON FAMILY VALUES THE HIGH COURT STOPPED SHORT OF INVALIDATING THE RULE AS UNCONSTITUTIONAL IN ALL CIRCUMSTANCES BY DOING SO THE JUSTICES LEFT OPEN THE POSSIBILITY THAT SCHOOL SYSTEMS COULD BAN ACTIVITIES SUCH AS WORSHIP SERVICES THAT ARE PERCEIVED AS ENDORSING A PARTICULAR RELIGION WRITING THE HIGH COURT'S MAIN OPINION JUSTICE BYRON WHITE SAID THAT IN CENTER MORICHES THERE WOULD HAVE BEEN NO REALISTIC DANGER THAT THE COMMUNITY WOULD THINK THAT THE SCHOOL DISTRICT WAS ENDORSING RELIGION OR ANY PARTICULAR CREED IN A PROVISION SEPARATE FROM THE FREESPEECH CLAUSE THE FIRST AMENDMENT BANS OFFICIAL ESTABLISHMENT OF RELIGION CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES HARRY BLACKMUN JOHN PAUL STEVENS SANDRA DAY O'CONNOR AND DAVID SOUTER JOINED THE OPINION IN A SEPARATE CASE THE SUPREME COURT MADE IT SOMEWHAT EASIER FOR THE GOVERNMENT TO USE AS EVIDENCE ILLEGAL DRUGS THAT POLICE FIND WHEN STOPPING AND SEARCHING DEFENDANTS WITHOUT WARRANTS GENERALLY POLICE MUST HAVE JUDICIALLY APPROVED WARRANTS TO CONDUCT SEARCHES YESTERDAY'S RULING ADDRESSED THE BREADTH OF AN EXCEPTION THAT ALLOWS POLICE TO CONFRONT AND SEARCH SUSPECTS THEY BELIEVE MIGHT BE ARMED RULING IN A CASE FROM MINNESOTA A UNANIMOUS HIGH COURT EXPANDED THE SOCALLED STOPANDFRISK EXCEPTION TO ALLOW POLICE TO SEIZE DRUGS OR OTHER CONTRABAND DETECTED DURING A PATDOWN FOR WEAPONS THE JUSTICES EXPLAINED THE NEW PLAINFEEL EXCEPTION AS ANALOGOUS TO THE PLAINVIEW DOCTRINE UNDER WHICH AUTHORITIES MAY SEIZE AN OBJECT WITHOUT A WARRANT IF THEY CAN READILY SEE IT AND DETERMINE ITS INCRIMINATING CHARACTER BUT THE HIGH COURT LIMITED THE PLAINFEEL EXCEPTION TO CIRCUMSTANCES WHEN AN OFFICER GENUINELY IS FRISKING A SUSPECT FOR A WEAPON AND IMMEDIATELY DISCOVERS DRUGS A SIXJUSTICE MAJORITY AFFIRMED A DECISION BY MINNESOTA STATE COURTS THAT COCAINE CONFISCATED DURING A WARRANTLESS PATDOWN SEARCH COULDN'T BE USED AS EVIDENCE THE OFFICER IN THE CASE DIDN'T THINK THE OBJECT IN THE SUSPECT'S POCKET WAS A GUN AND HAD TO GROPE IN THE POCKET TO DETERMINE THAT IT CONTAINED A BAG OF COCAINE THE HIGH COURT MAJORITY SAID MINNESOTA VS DICKERSON 9306080108 930608 CREDIT CARDS CHASE CUTS OFF ITS CARRENTAL INSURANCE PERK BY JAMES S HIRSCH STAFF REPORTER OF THE WALL STREET JOURNAL CHASE MANHATTAN WILL NO LONGER PAY TO PROVIDE CUSTOMERS WITH COLLISION COVERAGE ON CAR RENTALS THE PULLBACK MEANS THAT TRAVELERS WHO ARE IN CAR ACCIDENTS COULD BE INCREASINGLY EXPOSED TO HUGE FINANCIAL LOSSES CHASE IS WITHDRAWING ITS COLLISIONINSURANCE COVERAGE ON RENTAL CARS PAID FOR WITH THE BANK'S STANDARD VISA CARD OR MASTERCARD THE CHANGE WHICH TAKES EFFECT JUNE 30 WILL AFFECT 12 MILLION CARD HOLDERS CHASE THE SECONDLARGEST ISSUER OF VISA CARDS AND MASTERCARDS AFTER CITICORP WAS AMONG THE FEW BANKS IN THE NATION TO PROVIDE RENTALCAR COVERAGE ON STANDARD CARDS CITICORP HAS NEVER PROVIDED THE COVERAGE FOR ITS 30 MILLION STANDARD CARDS MEANTIME AMERICAN EXPRESS CO HAS RECENTLY INFORMED CARRENTAL COMPANIES THAT ITS PERSONAL CARDS WILL PROVIDE COLLISION COVERAGE AT ONLY 15 MAJOR CARRENTAL COMPANIES INCLUDING SUCH MARKET LEADERS AS HERTZ AND AVIS THE MOVE TAKES EFFECT AUG 1 WHILE THOSE RENTAL COMPANIES DOMINATE THE INDUSTRY THEY REPRESENT ONLY 33 OF THE COUNTRY'S 26000 RENTALCAR LOCATIONS ACCORDING TO GARY RUBIN EXECUTIVE EDITOR OF AUTO RENTAL NEWS PARING BACK CREDITCARD AMENITIES UNDERSCORES THE INCREASINGLY SLIM PROFIT MARGINS ON NONPREMIUM CARDS DURING THE 1980S CREDITCARD ISSUERS WERE ABLE TO CHARGE INTEREST RATES APPROACHING 20 THEN USE THE PROCEEDS TO FINANCE CARD PERKS SUCH AS CARRENTAL INSURANCE BUT THE WINDFALL HAS ENDED AS INTEREST RATES HAVE FALLEN INDEED CHASE IS ALSO DISCONTINUING EFFECTIVE JUNE 30 ITS 50000 ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE WHICH APPLIES TO CARD HOLDERS TRAVELING ON A SCHEDULED AIRLINE OR BY RAIL BOAT OR BUS WHEN THE ISSUERS HAD TO CONCENTRATE ON REAL PROFIT CENTERS IN THE CARD SOME OF THESE ENHANCEMENTS HAD TO GO SAID ROBERT B MCKINLEY PRESIDENT OF RAM RESEARCH CORP FREDERICK MD WHICH TRACKS THE BANKCARD INDUSTRY HE ESTIMATES THAT THE RENTALCAR COVERAGE HAS COST BANKS LIKE CHASE 1 PER CARD AND ADMINISTRATIVE EXPENSES ACCOUNT FOR MUCH OF THAT FOR TRAVELERS CREDIT CARDS HAVE PROVIDED CRITICAL COVERAGE AT A TIME WHEN RENTAL INSURANCE HAS BECOME BOTH MORE EXPENSIVE AND MORE RESTRICTIVE CAR COMPANIES SELL COLLISIONDAMAGE WAIVERS WHICH RELIEVE CUSTOMERS OF FINANCIAL RESPONSIBILITY FOR COLLISION DAMAGE AND SOMETIMES FOR PERSONAL LIABILITY DEPENDING UPON THE STATE AND RENTAL COMPANY BUT THE WAIVERS LONG RIDICULED BY CONSUMER ADVOCATES AS SHAMELESS PROFITEERING HAVE INCREASED STEADILY IN RECENT YEARS AND NOW COST AS MUCH AS 15 A DAY IN SOME LOCATIONS INSURANCE COMPANIES HAVE ALSO TRIED TO MIMIMIZE THEIR EXPOSURE TO CARRENTAL COLLISION COSTS LAST YEAR STATE FARM MUTUAL AUTOMOBILE INSURANCE CO PULLED ITS AUTOMATIC COLLISION AND LIABILITY COVERAGE FOR POLICYHOLDERS WHO RENT CARS FOR BUSINESS PURPOSES INSTEAD THE BLOOMINGTON ILL COMPANY IS SELLING THAT AS OPTIONAL COVERAGE FOR 40 A YEAR MOST STANDARD PERSONAL CREDIT CARDS INCLUDING THOSE ISSUED BY CHASE AND AMERICAN EXPRESS HAVE PROVIDED ONLY SECONDARY COVERAGE WHICH PICKS UP EXCESS COSTS NOT COVERED BY PRIMARY POLICIES THOSE EXTRA COSTS HOWEVER CAN STILL BE CONSIDERABLE IN THE CASE OF A CRASH CARRENTAL CUSTOMERS WHO HAVE A PRIMARY POLICY TYPICALLY USE THESE CREDIT CARDS TO PAY FOR THEIR DEDUCTIBLE MANY PERSONAL POLICIES ALSO COVER ONLY LIABILITY LOSSES AND NOT COLLISION DAMAGE CONSUMER ADVOCATES DENOUNCED THE CREDITCARD ISSUERS' CUTBACKS SAYING THEY DENY CUSTOMERS A VITAL SERVICE IF I HAD A CHASE CARD I WOULD CUT IT IN HALF AND SEND IT BACK SAID DONALD L PEVSNER A MIAMI LAWYER WHO SPECIALIZES IN CONSUMERTRAVEL ISSUES HE RECOMMENDS USING A UNIVERSAL CARD ISSUED BY AMERICAN TELEPHONE & TELEGRAPH CO WHICH PROVIDES RENTALCAR COVERAGE A CHASE SPOKESMAN SAID ITS DECISION TO DISCONTINUE ITS RENTAL INSURANCE WAS BASED NOT NECESSARILY ON COSTS BUT UPON OUR EVALUATION OF THE SERVICE AND HOW WE CAN BEST USE OUR RESOURCES CHASE WAS ONE OF THE FIRST BANKS TO OFFER THE COVERAGE IN THE MID1980S USING A THIRDPARTY INSURER TO COVER LOSSES CHASE'S PREMIUMLEVEL VISA GOLD CARD AND GOLD MASTERCARD WILL CONTINUE TO OFFER SECONDARY RENTALCAR INSURANCE AMERICAN EXPRESS SAID THE VAST MAJORITY OF ITS CARD HOLDERS WON'T BE AFFECTED BY ITS DECISION TO DENY COLLISION COVERAGE ON ALL BUT THE TOP 15 CARRENTAL FIRMS THE COMPANY HOWEVER WILL BE ABLE TO REALIZE SIGNIFICANT COST SAVINGS FROM THE MOVE THIS IS VERY EXPENSIVE COVERAGE TO PROVIDE AND ADMINISTER A SPOKESMAN SAID FOR CARS RENTED AT THE TOP 15 COMPANIES AMERICAN EXPRESS WILL RESTORE COLLISION COVERAGE TO 31 CONSECUTIVE DAYS FROM 15 THE COMPANY HAD LIMITED ITS COVERAGE TO 15 CONSECUTIVE DAYS A COUPLE OF YEARS AGO MORE RESTRICTIVE CREDITCARD INSURANCE COVERAGE WILL PARTICULARLY AFFECT NEW YORKERS MANY DON'T HAVE PERSONAL POLICIES BECAUSE THEY DON'T OWN CARS AND STATE LAW PROHIBITS RENTAL AGENCIES FROM SELLING COLLISIONDAMAGE WAIVERS ILLINOIS IS THE ONLY OTHER STATE TO HAVE SUCH A LAW NEW YORKERS AND FREQUENT TRAVELERS GENERALLY MAY NOW CONSIDER BUYING PREMIUMLEVEL CARDS THAT OFTEN COME WITH A HEFTY ANNUAL FEE BUT PROVIDE COVERAGE ON CAR RENTALS CITICORP'S PERSONAL DINERS CLUB FOR EXAMPLE COSTS 80 A YEAR BUT PROVIDE PRIMARY COLLISION COVERAGE