CHICAGO AN ABBOTT LABORATORIES SHAREHOLDER SUED THE COMPANY AND ITS DIRECTORS ALLEGING BREACH OF FIDUCIARY DUTY IN CONNECTION WITH THE COMPANY'S HANDLING OF ITS BABYFORMULA PRODUCTS THE HEALTHCARE AND MEDICAL PRODUCTS CONCERN MAKER OF THE POPULAR FORMULA KNOWN AS SIMILAC RECENTLY SETTLED FOR MORE THAN 140 MILLION LITIGATION BROUGHT BY 27 DRUGSTORE AND SUPERMARKET CHAINS AND BY THE FLORIDA ATTORNEY GENERAL THOSE SUITS ESSENTIALLY ALLEGED THAT ABBOTT HAD ENGAGED IN PRICEFIXING THROUGH ITS PARTICIPATION IN AN INDUSTRY SALES CODE THAT BARRED DIRECT ADVERTISING OF BABYFORMULA PRODUCTS ABBOTT SAID AT THE TIME OF THE SETTLEMENT THAT IT DID NOTHING WRONG AND THAT IT COMPETES RESPONSIBLY AGGRESSIVELY AND COMPLETELY WITHIN THE LAW ABBOTT'S TWO TOP COMPETITORS BRISTOLMYERS SQUIBB CO AND AMERICAN HOME PRODUCTS CORP LAST YEAR SETTLED SIMILAR LAWSUITS ALSO ASSERTING THAT THEY HADN'T VIOLATED ANY LAWS THE INDUSTRY CODE WAS TOUTED AS HELPING TO PROMOTE BABY HEALTH BY ENSURING THAT MEDICAL PROFESSIONALS ADVISED NEW MOTHERS ON THEIR INFANTS' DIETARY NEEDS BUT IT ALSO ALLEGEDLY HAD THE EFFECT OF MAKING ENTRY BY NEW COMPETITORS MORE DIFFICULT WHICH SERVED TO PROTECT FORMULA PRICES FROM COMPETITIVE PRESSURE THE LAWSUIT FILED BY ABBOTT HOLDER STEVEN ROBINSON IN THE CHANCERY DIVISION OF COOK COUNTY CIRCUIT COURT SAID THAT ABBOTT STILL FACES ANTITRUST ALLEGATIONS BROUGHT LAST YEAR BY THE FEDERAL TRADE COMMISSION IN ADDITION TO STATE COURT LAWSUITS RELATING TO BABY FORMULA PRICEFIXING AND OTHER ANTITRUST ALLEGATIONS THE SUIT IS A DERIVATIVE ACTION IN WHICH A SHAREHOLDER SUES THE COMPANY AND DIRECTORS ON BEHALF OF THE COMPANY THE ROBINSON LAWSUIT WHICH SEEKS UNSPECIFIED DAMAGES ALLEGES THAT THE COMPANY'S DIRECTORS BREACHED THEIR FIDUCIARY DUTY BY ALLOWING THEMSELVES TO GET INVOLVED IN PRICEFIXING AND BIDRIGGING IN NORTH CHICAGO ILL AN ABBOTT SPOKESMAN SAID THE COMPANY HAD NO COMMENT 9306040142 930604 HILO AUTOMOTIVE SALES HOUSTON HILO AUTOMOTIVE INC SAID CONTINUED ADVERSE WEATHER AND GENERAL SOFTNESS IN RETAIL SALES RESULTED IN A DECREASE IN MAY'S SAMESTORE SALES OF 42 THE AUTO PARTS RETAILER SAID TOTAL SALES FOR THE MONTH ROSE 43 TO 173 MILLION FROM 166 MILLION A YEAR EARLIER 9306040141 930604 WHO'S NEWS INSTITUTE OF FINANCE PICKS CHARLES DALLARA AS MANAGING DIRECTOR WASHINGTON THE INSTITUTE OF FINANCE INC SAID CHARLES A DALLARA A FORMER TREASURY DEPARTMENT OFFICIAL WILL BECOME THE INSTITUTE'S MANAGING DIRECTOR IN JULY MR DALLARA 44 YEARS OLD WHO IS A MANAGING DIRECTOR AT JP MORGAN & CO WILL BE THE INSTITUTE'S FIRST AMERICAN MANAGING DIRECTOR ESSENTIALLY THE CHIEF EXECUTIVE OFFICER A FORMER ASSISTANT SECRETARY OF THE TREASURY FOR INTERNATIONAL AFFAIRS HE LEFT THE BUSH ADMINISTRATION IN 1989 THE INSTITUTE MADE UP OF 175 MEMBER BANKING INSTITUTIONS ANALYZES FINANCIAL AND ECONOMIC ISSUES AND SERVES AS A BANKING SPOKESMAN TO THE GROUP OF SEVEN INDUSTRIAL NATIONS MR DALLARA SUCCEEDS HORST SCHULMANN WHO RESIGNED IN OCTOBER 1992 TO BECOME A REGIONAL PRESIDENT IN GERMANY'S BUNDESBANK SYSTEM 9306040140 930604 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION CAREMARK INTERNATIONAL INC AN OFFERING OF 100 MILLION OF SENIOR NOTES VIA LAZARD FRERES & CO AND J P MORGAN SECURITIES INC MISSISSIPPI POWER CO A UNIT OF SOUTHERN CO A SHELF OFFERING OF 105 MILLION IN DEPOSITARY PREFERRED SHARES PDV AMERICA INC A UNIT OF PETROLEOS DE VENEZUELA SA AN OFFERING OF 1 BILLION OF SENIOR DEBT SECURITIES VIA SALOMON BROTHERS INC 9306040138 930604 WHAT'S NEWS WORLDWIDE CLINTON WITHDREW HIS NOMINATION OF GUINIER FOR A TOP CIVILRIGHTS POST THE PRESIDENT AFTER MEETING WITH GUINIER AT THE WHITE HOUSE ANNOUNCED LAST NIGHT THAT HE WAS ABANDONING HIS NOMINATION OF HER TO HEAD THE JUSTICE DEPARTMENT'S CIVIL RIGHTS DIVISION CITING THE INTENSE CONTROVERSY GENERATED BY THE NOMINATION CLINTON SAID HE WOULDN'T HAVE CHOSEN GUINIER IF HE HAD READ HER ACADEMIC WRITINGS IN DETAIL BEFOREHAND HE SAID THAT WITH REGARD TO MINORITY RIGHTS ISSUES HER ARTICLES LEND THEMSELVES TO INTERPRETATIONS THAT ARE AT ODDS WITH VIEWS HE EXPRESSED DURING THE CAMPAIGN THE PRESIDENT'S HANDLING OF THE CONTROVERSY HAS ALIENATED THE MODERATES HE IS TRYING TO WOO AS WELL AS THE LIBERALS WHO FORM PART OF HIS CORE CONSTITUENCY BLACK AND WHITE POLITICIANS REACHED A TENTATIVE AGREEMENT TO HOLD SOUTH AFRICA'S FIRST ALLRACE ELECTION ON APRIL 27 1994 THE ELECTION TO INCLUDE THE COUNTRY'S 30 MILLION BLACKS WOULD CLEAR THE WAY FOR A BLACK GOVERNMENT THE ACCORD WAS APPROVED BY MOST OF THE 26 POLITICAL GROUPS PARTICIPATING IN DEMOCRACY TALKS IN JOHANNESBURG THE UN SECURITY COUNCIL SCHEDULED A VOTE TODAY ON A PLAN TO SEND THOUSANDS OF FOREIGN TROOPS TO PROTECT MUSLIMS IN SIX BOSNIAN CITIES DESPITE US RELUCTANCE AND OBJECTIONS FROM THE MUSLIMS THEMSELVES MEANWHILE MEDIATORS OWEN AND STOLTENBERG ARRIVED UNANNOUNCED IN SARAJEVO IN A SURPRISE EFFORT TO RESTART THE PEACE PROCESS PRINCE SIHANOUK CLAIMED POWER IN CAMBODIA BUT THEN REVERSED HIMSELF LEAVING THE LEADERSHIP OF THE COUNTRY IN DOUBT THE FORMER MONARCH HAD DECLARED HIMSELF THE LEADER OF A TRANSITIONAL GOVERNMENT INCLUDING INCUMBENT PRIME MINISTER HUN SEN AND FUNCINPEC THE OPPOSITION PARTY THAT WON A PLURALITY IN CAMBODIA'S JUSTCOMPLETED NATIONAL ELECTION ANGRY GUATEMALANS DEMONSTRATED AGAINST VICE PRESIDENT ESPINA WHO PROCLAIMED HIMSELF PRESIDENT BUT WAS BLOCKED FROM TAKING THE OATH BY A REBELLIOUS CONGRESS ESPINA MET WITH OPPOSITION LEADERS AND SOUGHT SUPPORT IN HIS BID TO SUCCEED SERRANO WHO WAS OUSTED BY THE ARMY THIS WEEK AFTER HE SEIZED NEARABSOLUTE POWERS GERMAN PROTESTERS SCUFFLED WITH POLICE AND WENT ON A WINDOWBREAKING RAMPAGE IN COLOGNE AS A MEMORIAL SERVICE FOR FIVE SLAIN TURKS TURNED INTO A DISPLAY OF OUTRAGE GERMAN PRESIDENT WEIZSAECKER APPEALING FOR CALM SAID DURING THE SERVICE THAT SATURDAY'S FIREBOMBING AND OTHER HATE CRIMES ARE A DANGER TO OUR CIVILIZATION A FEDERAL JURY IN SAN FRANCISCO AGREED THAT NEW YORKER WRITER JANET MALCOLM HAD DEFAMED PSYCHOANALYST JEFFREY MASSON BUT SAID IT WAS DEADLOCKED ON DAMAGES THE JUDGE IN THE LIBEL CASE DISMISSED THE JURORS AND SAID HE WOULD DECIDE WHETHER TO DECLARE A MISTRIAL OR ATTEMPT TO TRY THE ISSUE OF DAMAGES SEPARATELY A BRITISH OIL TANKER COLLIDED IN THICK FOG WITH A CARGO SHIP AND BURST INTO FLAMES OFF THE COAST OF BELGIUM KILLING AT LEAST SEVEN PEOPLE AND SPEWING BURNING GASOLINE INTO THE NORTH SEA FIREFIGHTERS FINALLY EXTINGUISHED THE FLAMES MORE THAN 10 HOURS AFTER THE TANKER BRITISH TRENT COLLIDED WITH THE PANAMANIANREGISTERED CARGO VESSEL YELTSIN ACKNOWLEDGED HE FACES A DIFFICULT FIGHT PERSUADING RUSSIA'S REGIONAL LEADERS TO APPROVE A PROPOSED CONSTITUTION TO REPLACE A SOVIETERA CHARTER DURING THE CONSTITUTIONAL CONFERENCE THAT OPENS TOMORROW THE PRESIDENT IS EXPECTED TO TRADE AWAY SOME OF HIS DESIRED POWERS TO GAIN SUPPORT OF THE REGIONAL OFFICIALS SPAIN'S PRIME MINISTER GONZALEZ BRACED FOR SUNDAY'S ELECTIONS AS POLLS INDICATED A CLOSE RACE BETWEEN HIS SOCIALISTS AND THE CONSERVATIVE PARTIDO POPULAR UNDER JOSE MARIA AZNAR LOWINCOME WOMEN SHOULDN'T STAY HOME AT TAXPAYER EXPENSE WHILE WORKINGCLASS MOTHERS MUST HELP SUPPORT THEIR FAMILIES HEALTH AND HUMAN SERVICES SECRETARY SHALALA DECLARED HER TOUGH COMMENTS CAME AS THE CLINTON ADMINISTRATION BEGINS WORK TO OVERHAUL THE WELFARE SYSTEM UKRAINIAN LAWMAKERS SQUABBLED OVER NUCLEAR ARMS AND THE NATION'S FUTURE AS DEBATE OPENED IN KIEV ON THE START 1 TREATY WHICH WOULD REQUIRE UKRAINE TO SURRENDER MUCH OF ITS STOCKPILE DIED NORTON SIMON 86 INDUSTRIALIST AND NOTED ART COLLECTOR WEDNESDAY IN BELAIR CALIF OF PNEUMONIA 9306040137 930604 MINERS IN AUSTRALIA WALK OUT TO SUPPORT UMW STRIKERS IN US THE UNITED MINE WORKERS' FOURWEEKOLD SELECTIVE COAL STRIKE ENTERED THE INTERNATIONAL ARENA AS NEARLY 1000 AUSTRALIAN MINERS WALKED OFF THEIR JOBS FOR 24 HOURS IN SUPPORT OF THE US STRIKERS THE AUSTRALIAN STRIKERS WORK AT TWO MINES OWNED BY HANSON PLC THEIR WALKOFF THURSDAY CAME AS THE UMW EXTENDED THE STRIKE AGAINST MEMBER COMPANIES OF THE BITUMINIOUS COAL OPERATORS ASSOCIATION TO INCLUDE FOR THE FIRST TIME MINES OWNED BY HANSON'S PEABODY HOLDING CO THE NO 1 US COAL PRODUCER IT'S A SYMPATHY STRIKE BUT I CAN'T SEE WHAT EFFECT IT WILL HAVE ON THE WORLD MARKET SAID EMILY MEDINE A PITTSBURGHBASED ANALYST WITH ENERGY VENTURES ANALYSIS INC PEABODY'S PRESENCE THERE IS NOT THAT GREAT AND IT'S HARD TO IMAGINE THAT ALL THE AUSTRALIANS WILL GO ON STRIKE FOR US COAL MINERS THE AUSTRALIAN STRIKE AFFECTS THE RAVENSWORTH AND WARKWORTH MINES RAVENSWORTH IS PRIMARILY A DOMESTIC MINE WARKWORTH MAINLY EXPORTS TO JAPAN AND SOUTH KOREA THE STRIKE HAS ALREADY HIT US MINES OWNED BY ASHLAND COAL INC ZIEGLER COAL HOLDING CO AMAX INC ARCH MINERAL CORP ROCHESTER & PITTSBURGH COAL CO CLI CORP AND CONSOL ENERGY INC WHICH IS OWNED BY GERMANY'S RHEINBRAUN AG AND DUPONT CO 9306040136 930604 SEEKING MS RIGHT SHE MAY BE WAITING IN ROMANTIC MOSCOW JUST ASK MR SCHONENBERGER WHO FOUND A BRIDE THERE AFTER A QUICKIE COURTSHIP BY ADI IGNATIUS STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW AS THE SWISSAIR FLIGHT FROM ZURICH DESCENDS INTO MOSCOW THOMAS SCHONENBERGER IS THINKING ABOUT LOVE SWISS WOMEN HE TELLS A FELLOW PASSENGER ARE TOO ASSERTIVE RUSSIANS MAKE MUCH BETTER WIVES SUCCESSFUL IN BUSINESS A FAILURE IN LOVE THE 38YEAROLD COMPUTER WHIZ HAS COME TO MOSCOW TO FIND A BRIDE BUT FINDING TRUE LOVE DOESN'T HAPPEN OVERNIGHT SO HE HAS GIVEN HIMSELF A WEEK I'M ALMOST 40 AND IT'S TIME TO BE MARRIED SAYS MR SCHONENBERGER I WANT TO BE VERY EFFICIENT ABOUT THIS MR SCHONENBERGER'S ODYSSEY ATTESTS TO THE VITALITY OF ONE OF RUSSIA'S FEW GROWTH INDUSTRIES THE EXPORT OF BRIDES AS MOSCOW RELAXES LAWS ON TRAVEL AND MARRIAGES TO OUTSIDERS THOUSANDS OF FOREIGN MEN ARE FLOCKING HERE TO FIND WILLING WIVES THROUGH DOZENS OF MOSCOW AGENCIES THERE IS A GENERAL SENSE IN THE WEST EXPLAINS THE DAILY NEWSPAPER KOMSOMOLSKAYA PRAVDA THAT RUSSIAN WOMEN LIKE TO COOK SEW CLEAN HOUSE AND HAVE LOTS OF BABIES THOUGH MR SCHONENBERGER HAS MOIST TRUSTING EYES AND A LIKABLE HONEST MANNER HE WILL NEVER BE MISTAKEN FOR CARY GRANT HE IS BELOWAVERAGE IN HEIGHT HAS UNEVEN TEETH AND SPORTS A MUSTACHE THAT REFUSES TO SPROUT BEYOND WISPINESS BUT HE IS A FOREIGNER WITH HARD CURRENCY AND REPRESENTS A TICKET OUT FOR THE MANY WOMEN LONGING TO LEAVE TROUBLED RUSSIA ONCE INSIDE MOSCOW'S SHEREMETYEVO AIRPORT MR SCHONENBERGER WHO DOESN'T SPEAK RUSSIAN FINDS HIMSELF IN AN ENDLESS LINE AT CUSTOMS HE HAS NOTHING TO DECLARE HE HAS A SINGLE BAG WITH TOILETRIES UNDERWEAR SOCKSAND A FEW BOXES OF CHOCOLATES FOR THE WOMEN HE WILL COURT FOR THE ENTIRE WEEK HE WILL WEAR A GARISHLY COLORED SHIRT BLUE JEANS AND SUEDE COWBOY BOOTS THE NEXT DAY MR SCHONENBERGER HEADS TO RIGEL LTD A NEWLY OPENED MATCHMAKING AGENCY RIGEL'S OWNER IS SERGEI ARISTOPH A FORMER WELDER WHO TRIED AND FAILED AT A NUMBER OF GETRICHQUICK SCHEMES BEFORE SETTING UP THE MARRIAGE SERVICE WITH A STEADY STREAM OF FOREIGN CLIENTS AND A DATABANK OF 5000 RUSSIAN WOMEN MR ARISTOPH MAKES A PROFIT OF 1000 A MONTH A TIDY SUM HERE AND THIS BUSINESS WON'T DIE HE SAYS IT WILL GO ON FOREVER LIKE HAIRCUTTING AFTER RECEIVING 60 FROM MR SCHONENBERGER MR ARISTOPH HANDS HIS NEW CLIENT A STACK OF INDEX CARDS ON THE FRONT OF EACH IS A WOMAN'S PHOTOGRAPH THE BACK HAS INFORMATION FOR WOULDBE SUITORS HEIGHT WEIGHT EDUCATION LANGUAGES AND HELPFULLY MARITAL STATUS FOR THE NEXT TWO HOURS MR SCHONENBERGER FLIPS THROUGH SOME 1000 CARDS FOR EACH KEPT HE TOSSES ASIDE ABOUT 30 THIS ISN'T FUN HE SAYS AS HE STUDIES EACH AND EVERY ENTRY THIS IS WORK MR ARISTOPH THEN PUTS ON A VIDEOTAPE SHOWING SEVERAL DOZEN MORE WOMEN IN TWOMINUTE SEGMENTS THEY EACH WALK TWIRL SIT AND SPEAK ON THE SCREEN 21YEAROLD LYUDMILLA SAYS IN FRENCH THAT SHE LIKES ANIMALS AND THE BEACH SHE IS DRESSED IN A BLACK MINISKIRT NOW THAT'S MY TYPE MR SCHONENBERGER SAYS AFTER THE VIDEOTAPE MR SCHONENBERGER PORES OVER A GLOSSY COLOR CATALOG PICTURING SEVERAL HUNDRED OTHER MARRIAGEABLE WOMEN THE MAGAZINE IS PRINTED BY A US COMPANY RUSSIAN CONNECTION THAT COOPERATES WITH MR ARISTOPH THE CATALOG'S MESSAGE IS CLEAR NO MATTER HOW MUCH OF A LOSER YOU MAY BE IN YOUR OWN COUNTRY YOU CAN ALWAYS FIND A WIFE IN RUSSIA AN ORDINARY AMERICAN ACCOUNTANT MARRIED A FAMOUS RUSSIAN ACTRESS IT PROCLAIMS IN THE END MR SCHONENBERGER SELECTS 35 WOMEN HE WISHES TO MEET THEY RANGE IN AGE FROM 20 TO 34 AND INCLUDE ECONOMISTS ENGINEERS SECRETARIES AND A COOK THIS IS A DECISION FOR THE REST OF MY LIFE HE SAYS IT'S WORTH SOME EFFORT TO DO IT RIGHT MR ARISTOPH SAYS HE CAN SQUEEZE ALL THE MEETINGS INTO THE NEXT FEW DAYS I ONCE HAD A JAPANESE CLIENT WHO MET EIGHT GIRLS IN ONE HOUR THE MATCHMAKER BOASTS MR SCHONENBERGER SAYS LET'S LIMIT IT TO THREE PER DAY ANY MORE AND I'D GET A HEADACHE BUT THERE WILL BE HEADACHES APLENTY AN INITIAL MEETING WITH WOMAN NO 1286 PROVES DISASTROUS HER TEETH WERE COMPLETELY DAMAGED MR SCHONENBERGER SAYS AND SHE WAS SAD ABOUT EVERYTHING RUSSIA LIFE THE WEATHER THE NEXT ENCOUNTER FARES NO BETTER THIS GIRL GAVE ME A WETFISH HANDSHAKE HE SAYS SEVERAL MORE MEETINGS FALL FLAT TWICE THE WOMEN WHO TURN UP AREN'T THE ONES PICTURED ON THE CARDS DESPAIRING AND WITH JUST TWO DAYS REMAINING ON HIS VISA MR SCHONENBERGER TRIES A NEW TACK HE APPROACHES A WELLDRESSED BLONDE ON THE STREET AND SAYS I'M FROM SWITZERLAND AND I'M LOOKING FOR A RUSSIAN GIRL WOULD YOU LIKE TO GO THE WOMAN WHO SPEAKS ENGLISH IMMEDIATELY ANSWERS YES BUT MR SCHONENBERGER IS OVERCOME BY SHYNESS AND TELLS HER HE HAS TO DASH OFF HE RETURNS TO RIGEL TO LOOK ONCE MORE THROUGH THE STACK OF PHOTOS HE DISCARDS THEM FRANTICALLY UNTIL HE COMES TO A BLACKANDWHITE PICTURE OF A BLOND WOMAN IN A BLACK LEATHER JACKET THAT'S HER HE EXCLAIMS AS IF FINDING THE WOMAN OF HIS DREAMS A MEETING IS ARRANGED FOR THE FOLLOWING DAY THEY RENDEZVOUS AT THE BAR IN THE SAVOY ONE OF MOSCOW'S FEW NICE HOTELS KATYA DROZHINA TURNS OUT TO BE A SLENDER 23YEAROLD NURSE WITH PINK EARRINGS TO MATCH HER NAILS HER MOTHER TATIANA HAS COME ALONG THEY ORDER CHAMPAGNE AT THE MOTHER'S URGING FOR TWO HOURS THE THREE MAKE SMALL TALK MR SCHONENBERGER IS SMITTEN I LIKE THAT KATYA IS SHY HE SAYS SHE HASN'T YET DEVELOPED I CAN MAKE A REAL PRINCESS OUT OF HER THE SHYNESS RESULTS PARTLY FROM THE FACT THAT MS DROZHINA KNOWS NONE OF THE FOUR LANGUAGES THAT HER SWISS SUITOR SPEAKS BUT HER MOTHER WHO SPEAKS FLUENT ENGLISH CONDUCTS THE COURTSHIP OFTEN ANSWERING MR SCHONENBERGER'S QUESTIONS WITHOUT CONSULTING HER DAUGHTER I FEEL LIKE A DEAF MAN AT A WEDDING THE YOUNGER MS DROZHINA COMPLAINS IN RUSSIAN DUE BACK IN SWITZERLAND THE NEXT DAY MR SCHONENBERGER SCREWS UP HIS COURAGE AND SAYS HE WANTS TO MARRY KATYA AND OFFERS TO FLY HER AND EVEN HER MOTHER TO SWITZERLAND FOR A THREEMONTH TRIAL PERIOD THE WOMEN SAY THEY WILL DISCUSS THE PROPOSAL OVERNIGHT JUST HOURS BEFORE MR SCHONENBERGER IS TO FLY OFF THEY MEET AGAIN MR SCHONENBERGER FEARING REJECTION ASKS WHAT THEY HAVE DECIDED THE ELDER MS DROZHINA PRETENDS NOT TO HEAR PRESSED SHE SAYS KATYA CONSENTS WHEN MR SCHONENBERGER LEAVES FOR THE AIRPORT HE TRIES TO KISS KATYA ON THE CHEEK SHE OFFERS HER LIPS I SUCCEEDED MR SCHONENBERGER SAYS SHE'S YOUNG NOT DIVORCED NO BABY AND I GET ALONG WITH HER MOTHER WHAT MORE COULD YOU ASK BACK IN SWITZERLAND MR SCHONENBERGER STARTS THE PROCESS OF ARRANGING VISAS AND OTHER DOCUMENTS FOR THE WOMEN HE RECEIVES A LETTER FROM KATYA IN ENGLISH I CANNOT IMAGINE MY LIFE WITHOUT YOU IT SAYS FINALLY EIGHT WEEKS AFTER MEETING THE PROSPECTIVE BRIDE AND HER MOTHER LEAVE MOSCOW FROM SWITZERLAND MR SCHONENBERGER PHONES A FRIEND IN MOSCOW I'LL BE SENDING YOU AN INVITATION TO THE WEDDING 9306040135 930604 BUSINESS BRIEF GLENFED INC CERTAIN SECURITIES HOLDERS TO PERMIT A RESTRUCTURING GLENFED INC GLENDALE CALIF SAID IT REACHED AN AGREEMENT IN PRINCIPLE WITH CERTAIN SECURITIES HOLDERS THAT IT BELIEVES WILL ALLOW THE BANKHOLDING COMPANY TO SUCCESSFULLY COMPLETE THE RECAPITALIZATION OF ITS GLENDALE FEDERAL BANK UNIT GLENFED SAID THE AGREEMENT WITH TWO STEERING COMMITTEES REPRESENTING HOLDERS OF ITS DEBENTURES AND GLENDALE FEDERAL PREFERRED SHARES WILL PERMIT A PROPOSED RESTRUCTURING OF THE SECURITIES THAT COULD LEAD TO AN EXTENSION OF THE JUNE 30 TARGET DATE SET BY THE OFFICE OF THRIFT SUPERVISION FOR THE BANK TO INCREASE ITS REGULATORY CAPITAL GLENFED SAID THE COMPANY SAID THE COMMITTEES REPRESENT CERTAIN HOLDERS OF GLENFED'S 7 3/4 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2001 AND OF THE UNIT'S 12 NONCUMULATIVE PERPETUAL PREFERRED STOCK FURTHER DETAILS WON'T BE RELEASED UNTIL REGULATORY FILINGS ARE MADE ON THE ENTIRE RECAPITALIZATION GLENFED HAS SAID IT EXPECTS THE RESTRUCTURING AND RECAPITALIZATION TO SUBSTANTIALLY DILUTE SHAREHOLDERS' INTERESTS 9306040134 930604 UNITED RETAIL GROUP SALES RISE ROCHELLE PARK NJ UNITED RETAIL GROUP INC SAID SALES FOR MAY ROSE 16 TO 332 MILLION FROM 286 MILLION A YEAR EARLIER THE RETAILER OF LARGESIZE WOMEN'S APPAREL SAID MAY SALES AT STORES OPEN AT LEAST A YEAR FELL 4 FROM MAY 1992 9306040133 930604 INTERNATIONAL SWEDEN VOLVO SAY PROCORDIA TO BE SPLIT UP CONGLOMERATE TO EMERGE AS HEALTHCARE FIRM FOODS TO BE SPUN OFF BY STEPHEN D MOORE SPECIAL TO THE THE WALL STREET JOURNAL STOCKHOLM RESOLVING MONTHS OF BICKERING AB VOLVO AND THE SWEDISH GOVERNMENT UNVEILED A SURPRISE SPINOFF PLAN PAVING THE WAY TO BELATED PRIVATIZATION OF PROCORDIA AB THEIR JOINTLY CONTROLLED FOOD AND DRUG CONGLOMERATE VOLVO CHAIRMAN PEHR GYLLENHAMMAR AND SWEDEN'S PREMIER CARL BILDT OUTLINED PLANS TO DISMEMBER PROCORDIA IN ONE OF THE BIGGEST CORPORATE TRANSACTIONS IN SWEDISH HISTORY THE PLAN VALUES PROCORDIA AT AROUND 64 BILLION UNDER THE PLAN PROCORDIA'S CONSUMER PRODUCTS OPERATIONS WHICH INCLUDE BEER TOBACCO AND FOOD ARE TO BE SPUN OFF LATER THIS YEAR AS A SEPARATE COMPANY THE REMAINING PROCORDIA WOULD EMERGE AS A STREAMLINED PHARMACEUTICALS AND BIOTECHNOLGY SUPPLY GROUP VOLVO AND THE GOVERNMENT WHICH HOLD NEARLY IDENTICAL 43 VOTING STAKES IN PROCORDIA AGREED TO DIVIDE CONTROL OF THE SPLITUP PARTS THROUGH A COMPLEX SHARE SWAP VOLVO WOULD TRADE PART OF ITS CURRENT PROCORDIA INTEREST FOR THE GOVERNMENT'S ENTIRE STAKE IN THE NEW CONSUMER PRODUCTS COMPANY THAT WOULD LEAVE VOLVO WITH A 74 VOTING STAKE IN THE CONSUMER PRODUCTS CONCERN AND THE AUTOMAKER INTENDS TO BID FOR THE REMAINING SHARES IN A TENDER OFFER THAT COULD BE VALUED AT MORE THAN 555 MILLION SWEDEN INTENDS TO SELL ITS REMAINING PROCORDIA VOTING STAKE OF AS MUCH AS 60 IN A PUBLIC OFFERING NO LATER THAN DEC 31 1995 OFFICIALS SUGGESTED THAT THE PRIVATIZATION IS LIKELY TO TAKE PLACE NEXT YEAR IN CONNECTION WITH SALE OF THE STATE'S INTEREST VOLVO WOULD HAVE THE RIGHT TO RAISE ITS VOTING STAKE IN PROCORDIA'S PHARMACEUTICAL AND BIOTECH OPERATIONS TO 35 FROM 25 BUT PENDING THE PRIVATIZATION A STANDSTILL PACT BARS FURTHER PROCORDIA PURCHASES BY VOLVO IN THE OPEN MARKET PRELIMINARY ASSESSMENTS BY INDEPENDENT FINANCIAL ADVISERS VALUED THE CONSUMER PRODUCTS COMPANY AT 2 BILLION AND THE REMAINING PROCORDIA HEALTHCARE OPERATIONS AT 437 BILLION THE COMBINED TALLY OF 637 BILLION REFLECTED APPLICATION OF RELEVANT INTERNATIONAL PRICE/EARNINGS MULTIPLES TO PROCORDIA'S RESPECTIVE PARTS THE VALUATION WOUND UP ROUGHLY 555 MILLION ABOVE PROCORDIA'S MARKET VALUE BEFORE THE PROPOSAL WAS ANNOUNCED INVESTORS WELCOMED THE PLAN SENDING THE PRICE OF BOTH VOLVO AND PROCORDIA STOCK UP SHARPLY ON THE STOCKHOLM STOCK EXCHANGE VOLVO'S CLASS B STOCK CLIMBED 16 KRONOR OR 4 TO 406 KRONOR 5635 WHILE PROCORDIA'S BENCHMARK CLASS B SHARES ROCKETED 29 KRONOR OR 17 TO 193 KRONOR THIS DISPELS DOUBTS ABOUT THE FUTURE AND IS GOOD FOR ALL PARTIES INCLUDING THE GOVERNMENT FOR PROCORDIA IT'S BETTER TO HAVE ONE OWNER THAN TWO WHO AREN'T ON SPEAKING TERMS SAID TORBJOERN GUNNARSSON AN ANALYST AT STOCKHOLM SECURITIES FIRM ABB AROS FONDKOMMISSION MR GUNNARSSON'S COMMENT REFERRED TO A PUBLIC CLASH THAT ERUPTED BETWEEN MR GYLLENHAMMAR AND PRIME MINISTER BILDT LAST YEAR WHEN THE GOVERNMENT THWARTED A PROPOSED REVERSE TAKEOVER OF VOLVO BY PROCORDIA THE FLAP SOURED VOLVO'S TRADITIONALLY CLOSE TIES WITH SWEDEN'S POLITICAL ESTABLISHMENT AND RAISED EYEBROWS AS FAR AFIELD AS VOLVO'S STATECONTROLLED FRENCH ALLY RENAULT SA RELATIONS BETWEEN MR BILDT AND MR GYLLENHAMMAR REMAINED STRAINED AT LEAST IN PUBLIC BUT BEHIND THE SCENES ADVISERS HAMMERED OUT A SUCCESSION OF PROPOSALS TO PERMIT THE SALE OF THE STATE'S PROCORDIA STAKE WITHOUT JEOPARDIZING THE STRATEGIC INTERESTS OF EITHER PROCORDIA OR VOLVO STRATEGIC DEVELOPMENTS IN RECENT MONTHS PARTICULARLY PROCORDIA'S 12 BILLION PURCHASE OF MONTEDISON SPA'S ERBAMONT DRUG DIVISION HELPED EASE THE OWNERSHIP IMPASSE THOUGH ANALYSTS VIEWED PROCORDIA'S ATTEMPT TO THE TOBACCO AND PHARMACEUTICALS BUSINESSES AS INCREASINGLY OUTLANDISH THE COMPANY'S OWNERS WORRIED THAT THE PHARMACEUTICAL OPERATIONS WOULD HAVE PROBLEMS FUNDING EXPENSIVE SCIENTIFIC RESEARCH WITHOUT THE CASH PILED UP BY BRANDNAME CONSUMER GOODS PROCORDIA CHIEF EXECUTIVE JAN EKBERG CLAIMED THE ADDITION OF ERBAMONT NOT ONLY TIPPED THE BALANCE OF BUSINESSES STRONGLY IN FAVOR OF HEALTH CARE BUT CONVINCED EVERYONE THAT THE DRUG SIDE WAS FINALLY BIG ENOUGH TO SURVIVE ON ITS OWN IN ANNOUNCING THE PLAN MR GYLLENHAMMAR THE VOLVO CHIEF WAS PLEASED BY THE PROSPECT OF GAINING UNRESTRAINED ACCESS TO CASH FLOW FROM CONSUMER BRAND OPERATIONS WITH ANNUAL SALES OF NEARLY 35 BILLION A STEADY SOURCE OF CASH IS CRUCIAL TO HIS VISION OF VOLVO'S EVOLUTION FROM PRIMARILY AN AUTO GROUP TO MORE OF A HOLDING COMPANY WITH MYRIAD INTERESTS 9306040132 930604 HECHINGER SALES ROSE 18 IN MAY LANDOVER MD HECHINGER CO SAID ITS SALES FOR MAY ROSE 18 TO 2142 MILLION FROM 1817 MILLION A YEAR EARLIER THE 122STORE RETAILER OF HOME IMPROVEMENT GOODS SAID ITS MAY SALES AT STORES OPEN AT LEAST A YEAR ROSE 7 FROM MAY 1992 9306040131 930604 SAO PAULO BRAZIL COST OF LIVING SAO PAULO BRAZIL THE MONTHLY COST OF LIVING IN THE METROPOLITAN AREA OF SAO PAULO ROSE TO A 2914 RATE DURING MAY THE UNIVERSITY OF SAO PAULO'S ECONOMIC RESEARCH INSTITUTE SAID ACCORDING TO THE FIPE INDEX AS THE COSTOFLIVING INDEX IS CALLED THE INFLATION RATE WAS UP FROM 2874 IN APRIL 9306040130 930604 NYSE SEAT IS SOLD FOR 650000 NEW YORK THE NEW YORK STOCK EXCHANGE SAID A SEAT SOLD FOR 650000 UP 75000 FROM THE LAST SEAT SALE FEB 2 9306040129 930604 BONTON SALES DECLINE 26 YORK PA BONTON STORES INC SAID ITS SALES FOR THE FOUR WEEKS ENDED MAY 29 FELL 26 TO 246 MILLION FROM 253 MILLION SALES AT STORES OPEN AT LEAST A YEAR FELL 47 FOR THE FIRST 17 WEEKS OF THE FISCAL YEAR SALES ROSE 1 TO 903 MILLION FROM 895 MILLION SAMESTORE SALES FELL 4 9306040128 930604 FINANCING BUSINESS HOLLYWOOD PARK INC HOLLYWOOD PARK INC INGLEWOOD CALIF FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN OFFERING OF FOUR MILLION SHARES OF COMMON STOCK WHICH AT CURRENT MARKET PRICES WOULD HAVE A VALUE OF 100 MILLION THE THOROUGHBRED RACETRACK OPERATOR HAS 116 MILLION COMMON SHARES OUTSTANDING THE COMPANY SAID THE PROCEEDS WILL BE USED TO RETIRE THE BULK OF ITS DEBT AND TO FUND THE STARTUP COSTS OF A NEW GAMBLING CARD CLUB AS WELL AS OTHER FUTURE EXPANSION OPPORTUNITIES THE COMPANY DECLINED TO DESCRIBE 9306040127 930604 JAPAN'S APRIL CURRENT ACCOUNT SURPLUS ROSE 15 FROM YEAR EARLIER TOKYO JAPAN'S CURRENT ACCOUNT SURPLUS FOR APRIL BEFORE ADJUSTMENT FOR SEASONAL FACTORS GREW 15 FROM THE YEAREARLIER MONTH TO 1127 BILLION THE FINANCE MINISTRY ANNOUNCED YESTERDAY APRIL'S CURRENT ACCOUNT SURPLUS WAS SMALLER THAN THE 1270 BILLION SURPLUS THAT SOME ANALYSTS ON AVERAGE EXPECTED IN MARCH THE UNADJUSTED CURRENT ACCOUNT SURPLUS SWELLED 38 TO 1909 BILLION FROM 1380 BILLION A YEAR EARLIER THE MARCH TRADE SURPLUS OF 1559 BILLION GREW 20 FROM 1297 BILLION THE BALANCE OF PAYMENTS AT 2585 BILLION WAS ABOVE THE SURPLUS OF 2134 BILLION WHILE FUELED BY SLUGGISHNESS IN JAPAN'S ECONOMY THAT DAMPS DEMAND FOR IMPORTS HUGE EXTERNAL SURPLUSES ARE DRAWING FIRE FROM TRADING PARTNERS WORRIED THAT THE IMBALANCES MAY BE TO A DEGREE STRUCTURAL IN NATURE THE US AND EUROPEAN NATIONS ARE PRESSING JAPAN FOR ACTION TO FURTHER OPEN ITS MARKETS TO IMPORTS IN ALL OF 1992 THE CURRENT ACCOUNT WHICH REPRESENTS TRANSACTIONS FOR GOODS AND SERVICES BUT DOESN'T INCLUDE NEW INVESTMENT BALLOONED 61 FROM THE PRECEDING YEAR TO 11762 BILLION THE TRADE SURPLUS A COMPONENT OF CURRENT ACCOUNT THAT DOESN'T INCLUDE SERVICES AND OVERSEAS TRAVEL GREW 29 IN THE YEAR TO A RECORD 13260 BILLION FROM 10304 BILLION NEW INVESTMENT AS WELL AS THE CURRENT ACCOUNT ARE REFLECTED IN THE OVERALL BALANCE OF PAYMENTS WHICH LAST YEAR STAYED IN SURPLUS BUT SHRANK MODESTLY TO 7160 BILLION FROM 7637 BILLION THE TRADE SURPLUS AS MEASURED ON THE BASIS OF SETTLED CONTRACTS WAS THE LARGEST FOR ANY APRIL A MINISTRY OFFICIAL SAID THE EXPORT TOTAL WAS THE FIFTH LARGEST FOR ANY MONTH AND IMPORTS WERE THE NINTH LARGEST 9306040126 930604 KELLWOOD AGREES TO BUY FIRM ST LOUIS KELLWOOD CO SAID IT SIGNED A DEFINITIVE PACT TO ACQUIRE GOODMAN KNITTING CO A BROCKTON MASS SPORTSWEAR CONCERN TERMS WEREN'T DISCLOSED THE MAKER OF APPAREL HOME FASHIONS AND RECREATIONALCAMPING SOFT GOODS SAID GOODMAN KNITTING'S MODERATETOBETTERPRICED SPORTSWEAR IS AVAILABLE UNDER THE NORTHERN ISLES SIGNATURES BY NORTHERN ISLES SPECIAL TREASURES BY NORTHERN ISLES AND ASHLEY BRAND NAMES GOODMAN KNITTING HAS ANNUAL SALES OF MORE THAN 50 MILLION AND IS MANAGED BY PETER GOODMAN AND BARRY SYLVETSKY THE TRANSACTION IS EXPECTED TO BE COMPLETED BY NEXT MONTH 9306040125 930604 TECHNOLOGY MICROSOFT SAYS ITC SHOULD STAY OUT OF PC CHIP CASE BY STEPHEN KREIDER YODER STAFF REPORTER OF THE WALL STREET JOURNAL MICROSOFT CORP THROWING ITSELF INTO A DISPUTE BETWEEN INTEL CORP AND TWO OF INTEL'S RIVALS IS URGING THE INTERNATIONAL TRADE COMMISSION NOT TO GRANT INTEL'S REQUEST THAT THE ITC INVESTIGATE AN IMPORTER OF PERSONAL COMPUTERS THAT USE CLONES OF INTEL'S CHIPS INTEL LAST MONTH ASKED THE ITC TO INVESTIGATE TAIWAN'S TWINHEAD INTERNATIONAL CORP WHICH EXPORTS TO THE US LAPTOP PCS USING CHIPS DEVELOPED BY ADVANCED MICRO DEVICES INC AND CYRIX CORP INTEL ALLEGES THAT THE MACHINES TIE THE CLONES TOGETHER WITH OTHER ELECTRONIC COMPONENTS IN A WAY THAT VIOLATES INTEL PATENTS IN A JUNE 2 LETTER TO THE ITC MICROSOFT BACKED ADVANCED MICRO'S FORMAL ARGUMENT TO THE ITC THAT THE BODY ISN'T THE RIGHT FORUM FOR WHAT IS ESSENTIALLY A DOMESTIC PATENT DISPUTE BETWEEN INTEL AND ITS CLONERS THE LETTER SIGNED BY MICROSOFT LAWYER JOHN MASON ARGUES THAT INTEL'S COMPLAINT DOES NOT ALLEGE FACTS SUFFICIENT TO SUPPORT THE COMMISSION'S JURISDICTION AND IS IN ACTUALITY AN ATTEMPT BY INTEL TO TURN AN ALREADY PENDING DOMESTIC PATENT DISPUTE INTO AN INTERNATIONAL TRADE CONTROVERSY INTEL'S COMPLAINT MR MASON WRITES DIRECTLY IMPLICATES WINDOWS A BIGSELLING MICROSOFT OPERATING SYSTEM THAT MANY PC MAKERS IN THE US AND ABROAD LOAD INTO THEIR MACHINES WINDOWS SOFTWARE USES A PC'S MEMORY IN A WAY THAT USES THE PATENT CLAIMED BY INTEL AN INVESTIGATION OF TWINHEAD HE WRITES MAY HAVE A CHILLING EFFECT UPON THE BUSINESSES OF US PC COMPANIES THAT ASSEMBLE MACHINES OR PROCURE PARTS ABROAD THE DISPUTE BETWEEN INTEL AND ITS CLONERS SURFACED IN MID1992 WHEN INTEL BEGAN ASKING FOR PATENT ROYALTY PAYMENTS FROM PC MAKERS THAT USE CYRIX AND ADVANCED MICRO'S CLONES NO PC MAKER HAS AGREED TO PAY SUCH ROYALTIES YET INTEL SAYS INTEL'S ITC COMPLAINT LAST MONTH HAS CAUSED CONSTERNATION AMONG TAIWANESE PC MAKERS WHICH ARE BIG CUSTOMERS OF ADVANCED MICRO'S AND CYRIX'S MICROSOFT AND INTEL SAID THE SOFTWARE COMPANY'S LETTER DOESN'T INDICATE A RIFT BETWEEN THEM A MICROSOFT SPOKESWOMAN SAID THE COMPANY ISN'T TAKING A POSITION ON THE PATENT DISPUTE ONLY ON THE ITC COMPLAINT AN INTEL SPOKESWOMAN WHO SAID THE CHIP MAKER DOESN'T PLAN TO WITHDRAW ITS ITC COMPLAINT SAID THAT INTEL AND MICROSOFT AGREE ON A LOT OF THINGS THIS IS SOMETHING THAT WE DON'T HAPPEN TO AGREE ON 9306040124 930604 WHO'S NEWS MIDWEST GRAIN PRODUCTS INC MIDWEST GRAIN PRODUCTS INC ATCHISON KAN ELEANOR SCHWARTZ WAS ELECTED TO THE BOARD OF THIS PRODUCER OF WHEAT AND GRAIN PRODUCTS MS SCHWARTZ CHANCELLOR OF THE UNIVERSITY OF MISSOURIKANSAS CITY SUCCEEDS JIM HOSIER FORMER PRESIDENT OF MCCORMICK DISTILLING CO WHO RESIGNED 9306040123 930604 KADER HOLDINGS PROFIT DECLINES HONG KONG KADER HOLDINGS CO POSTED A DECREASE OF 12 IN NET INCOME FOR 1992 NET TOTALED 342 MILLION HONG KONG DOLLARS US44 MILLION OR 75 CENTS A SHARE DOWN FROM HK391 MILLION OR 95 CENTS A SHARE REVENUE ROSE 64 TO HK5618 MILLION FROM HK5279 MILLION KADER HOLDINGS OWNS 40 OF THE RAZED BANGKOK TOY FACTORY IN WHICH ABOUT 200 PEOPLE WERE KILLED IN A RECENT FIRE 9306040122 930604 THAI SEC'S INTENTIONS WIN RESPECT BUT EXECUTION OF POLICIES IS CRITICIZED BY CYNTHIA OWENS STAFF REPORTER OF THE WALL STREET JOURNAL BANGKOK THAILAND SINCE IT WAS SET UP A YEAR AGO THAILAND'S SECURITIES AND EXCHANGE COMMISSION HAS EARNED WIDESPREAD PUBLIC RESPECT BUT TO MANY STOCK INVESTORS THE AGENCY HAS DELIVERED MORE THAN THEY BARGAINED FOR THE SEC'S HIGHLY PUBLICIZED CASES AGAINST ALLEGED STOCKPRICE MANIPULATORS WHICH ENDED YEARS OF SHADY TRADING PRACTICES ON THE STOCK EXCHANGE OF THAILAND OR SET AND ITS UNCOMPROMISING PURSUIT OF WRONGDOERS EVEN THOSE WITH IMPORTANT POLITICAL CONNECTIONS HAVE WON IT HIGH PRAISE AT THE SAME TIME THE AGENCY HAS COMMITTED BLUNDERS IN EXECUTING NEW POLICIES BLUNDERS THAT MORE THAN ONCE HAVE PROMPTED PANIC SELLING ON THE SET THEIR INTENTION IS GOOD THE IMPLEMENTATION IS SOMETIMES NOT SO GOOD SAYS A DIRECTOR OF AT BANGKOK SECURITIES FIRM COMMISSION OFFICIALS HAVE REGULARLY ISSUED DIRECTIVES OR TAKEN SPECIFIC ACTION ONLY TO SPEND SUBSEQUENT WEEKS TRYING TO CLARIFY THE ISSUES AND CALM INVESTORS ANALYSTS DON'T BLAME THE SEC FOR THE GENERAL MALAISE THAT HAS AFFLICTED THE THAI MARKET OF LATE BUT THEY DO FAULT IT FOR CONFUSING INVESTORS AND MANY SAY THEY HOPE THE SEC WILL SOON START TO SHOW THAT IT HAS LEARNED FROM ITS MISTAKES MEANWHILE SMALL INVESTORS WHO ACCOUNT FOR MORE THAN 50 OF AVERAGE DAILY TRADING VOLUME ON THE SET WILL LIKELY CONTINUE TO COMPLAIN EVERY TIME THEY SAY SOMETHING I LOSE MONEY SAYS HOUSEWIFE PANTANAPARA PUNLERT WHO SAYS SHE TRADES SHARES ALMOST EVERY DAY HOW CAN THEY SAY THEY ARE PROTECTING INVESTORS AND IMPROVING THE MARKET THEY DON'T HELP ME SEC OFFICIALS MAKE NO EXCUSES THEY SAY THAT THEY ARE DETERMINED TO DO WHATEVER IS NECESSARY IN THE NEXT FEW YEARS TO CREATE A MORETRANSPARENT STOCK MARKET AND THAT BRIEF HICCUPS WILL BE PART OF THE PROCESS AS INVESTORS ADJUST TO THE NEW ENVIRONMENT I THINK WE WERE THE ONES WHO TOOK AWAY THE PUNCH BOWL WHEN THE PARTY WAS NOT QUITE OVER BUT I THINK THE BUBBLE WOULD HAVE BURST ANYWAY SAYS RAPEE SUCHARITAKUL DIRECTOR OF THE SEC'S OFFICE OF THE SECRETARYGENERAL WHAT ELSE COULD WE DO WHEN WE SEE SUCH MANIPULATION GOING ON INDEED THE GOAL OF THEN PRIME MINISTER ANAND PANYARACHUN'S GOVERNMENT WHEN IT APPROVED LEGISLATION IN MARCH 1992 ESTABLISHING THE SEC WAS TO ELIMINATE WIDESPREAD MANIPULATION IN THE MARKET AS PART OF A BROADER EFFORT TO BRING THAI REGULATION UP TO INTERNATIONAL STANDARDS THE COMMISSION PATTERNED CLOSELY AFTER THE US SEC TOOK OVER FUNCTIONS THAT HAD BEEN HANDLED BY A HODGEPODGE OF REGULATORS INCLUDING THE CENTRAL BANK THE MINISTRY OF FINANCE AND THE SET ITSELF INITIAL EXPECTATIONS WERE LOW MANY ANALYSTS AND INVESTORS REGARDED THE FLEDGLING REGULATOR AS A PAPER TIGER FOR ONE THING MUCH OF ITS STAFF CULLED FROM THE BANK OF THAILAND WERE CONSIDERED BRIGHT AND DEDICATED BUT NOT ALL THAT KNOWLEDGEABLE OF THE SECURITIES INDUSTRY SO IT CAME AS A SHOCK SIX MONTHS LATER WHEN THE SEC WENT AFTER THE BIG HANDS THE BIGTIME PLAYERS SOME OF THEM WITH HIGH GOVERNMENT CONNECTIONS WHO FOR YEARS DOMINATED TRADING ON THE SET AND COULD MOVE STOCK PRICES AT WILL IN THE PAST SUCH INDIVIDUALS ACTED WITH IMPUNITY BUT UNDER THE CLEANGOVERNMENT ADMINISTRATION OF PRIME MINISTER CHUAN LEEKPAI AND SEC SECRETARYGENERAL EKAMOL KIRIWAT THAT'S NO LONGER THE CASE OVERNIGHT THE SEC BECAME THE SUBJECT OF DEBATE IN PARLIAMENT AND PREVIOUSLY OBSCURE COMMISSION OFFICIALS MADE FRONTPAGE NEWS STOCKBROKERS SAY THE SEC'S CHARGES AGAINST 30 INDIVIDUALS INVOLVING THE SHARES OF FIVE COMPANIES HAVE PUT FEAR IN THE HEARTS OF WOULDBE MARKET MANIPULATORS AND ELIMINATED SOME OF THE MOREBLATANT ILLEGAL PRACTICES ON THE EXCHANGE PEOPLE ARE POSITIVELY SURPRISED AT THE CLAMPDOWN ON SPECULATION SAYS DAVID GAMBRILL RESEARCH MANAGER AT PEREGRINE BROKERAGE LTD IN BANGKOK THE SEC HAS PROVEN THEY ARE WILLING TO GO AFTER WRONGDOERS DESPITE THEIR POLITICAL CONNECTIONS STILL ANNOUNCEMENTS OF THE CHARGES IN NOVEMBER AND THEN IN APRIL SENT THE STOCK MARKET REELING ANALYSTS SAY THE SEC CASES ALONE DIDN'T DEPRESS PRICES BUT THAT THE ANNOUNCEMENTS COMBINED WITH POOR CORPORATE EARNINGS AND QUESTIONS ABOUT THAILAND'S ECONOMIC PROSPECTS WERE LARGELY RESPONSIBLE FOR LOSSES ON THE SET AFTER NOVEMBER AND AGAIN AFTER A MINIRALLY IN APRIL ON THURSDAY THE SET INDEX CLOSED AT 83208 DOWN 1118 POINTS ON THE DAY AND OFF 17 FROM ITS HIGH THIS YEAR OF 99844 SET JAN 25 HOWEVER ANALYSTS DO FAULT THE COMMISSION FOR FAILING TO ANTICIPATE INVESTORS' SKITTISH REACTION TO ITS MOVES FOR INSTANCE THE DAY AFTER ITS APRIL 22 ANNOUNCEMENT OF STOCKMANIPULATION CHARGES THE MARKET ROSE 225 POINTS BUT OVER THE FOLLOWING THREE DAYS THE SET INDEX DROPPED 5 AS CONFUSION ABOUT THE EXTENT OF THE SEC'S INVESTIGATIONS SPREAD ALL OF THE CASES ARE NOW UNDER INVESTIGATION BY THE PUBLIC PROSECUTOR WHILE MANY COMPLAIN THAT THE SEC HAS BEEN RASH IN ITS ACTIONS MARK GREENWOOD GENERAL MANAGER OF FIRST ASIA SECURITIES LTD SAYS THE COMMISSION HAS GENERALLY PERFORMED WELL BUT ISN'T KEEPING PACE WITH DEVELOPMENTS IN THE SECURITIES INDUSTRY THAT CERTAINLY HAS BEEN THE CASE WITH THE SEC'S ATTEMPT TO MAKE IT EASIER FOR FOREIGNERS TO BUY THAI SHARES UNDER A LONGSTANDING SYSTEM A CERTAIN PERCENTAGE OF A LISTED COMPANY'S SHARES ARE DESIGNATED OPEN TO FOREIGN INVESTORS BECAUSE OF LIMITED SUPPLY THESE SHARES TYPICALLY TRADE AT A PREMIUM TO THEIR COUNTERPARTS FOR DOMESTIC INVESTORS PROMPTING MANY FOREIGNERS TO INVEST DIRECTLY ON THE SET THROUGH NOMINEES IN JANUARY THE SEC SET OUT TO REMEDY THE PROBLEM RELEASING SKETCHY PLANS FOR EASING FOREIGN ACCESS TO THE MARKET SOME FOREIGNERS IMMEDIATELY BEGAN SELLING THEIR SPECIALLY DESIGNATED SHARES IN ANTICIPATION OF RULE CHANGES CAUSING THE PREMIUMS ON SOME TO DROP SHARPLY FIVE MONTHS LATER THE COMMISSION IS STILL WORKING ON DETAILS OF ITS PLAN IN THE MEANTIME FOREIGNERS CAN ONLY GUESS AT WHAT THE NEW RULES WILL BE THE SECURITIES INDUSTRY IS MUCH FASTER MOVING THAN THE REGULATORS MR GREENWOOD SAYS IN OTHER AREAS SEVERAL COMPANIES ARE AWAITING PROMISED IMPROVEMENTS IN THE BOND MARKET AND THE DEVELOPMENT OF NEW PRODUCTS IN ORDER TO RAISE MONEY MR RAPEE SAYS THAT BECAUSE THE COMMISSION HAS LARGELY COMPLETED ITS TASK OF CLEANING UP THE SET IT WILL HAVE MORE TIME TO DEVOTE TO THESE ISSUES THE SEC WILL NOW HAVE TO FULFILL ITS OTHER ROLES HE SAYS ANALYSTS ALSO HOPE THAT SOME OF THE MISSTEPS OF ITS INFANCY HAVE TAUGHT THE SEC TO OPERATE MORE SMOOTHLY SAYS THE MANAGER OF FOREIGN SALES FOR A LOCAL BROKERAGE COMPANY THEY WILL IMPROVE THEMSELVES WE HOPE IT IS SOON 9306040121 930604 PHILADELPHIA SUBURBAN WATER BRYN MAWR PA PHILADELPHIA SUBURBAN WATER CO RECEIVED PERMISSION FOR A 74 ANNUAL RATE INCREASE FROM THE PENNSYLVANIA PUBLIC UTILITY COMMISSION THAT WILL INCREASE ANNUAL REVENUE BY 68 MILLION PHILADELPHIA SUBURBAN INITIALLY FILED FOR A 176 OR 161 MILLION ANNUAL RATE INCREASE IN NOVEMBER 1992 THE RATE INCREASE IS EFFECTIVE JUNE 1 THE UTILITY IS A UNIT OF PHILADELPHIA SUBURBAN CORP 9306040120 930604 LABOR DEPARTMENT ISSUES REGULATIONS GOVERNING FAMILY LEAVE LEGISLATION BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE LABOR DEPARTMENT ISSUED RULES DESIGNED TO CARRY OUT LEGISLATION THAT GIVES WORKERS AS MANY AS 12 WEEKS OF UNPAID LEAVE TO CARE FOR A NEW CHILD OR ILL RELATIVE THE RULES WHICH GO INTO EFFECT AUG 5 WILL APPLY TO ALL COMPANIES WITH MORE THAN 50 EMPLOYEES AND TO GOVERNMENT AGENCIES THE LABOR DEPARTMENT ESTIMATES THAT THE RULES WILL COVER 40 OF THE WORK FORCE IT SAID 5 OF US COMPANIES MEET THE MINIMUM SIZE REQUIREMENTS COMPANIES WITH MORE THAN 50 EMPLOYEES WILL BE REQUIRED TO COMPLY AT ALL LOCATIONS WHERE THERE ARE AT LEAST THAT MANY EMPLOYEES WITHIN A 75MILE RADIUS TO QUALIFY EMPLOYEES MUST HAVE WORKED FOR THE COMPANY FOR A YEAR AND MUST WORK AT LEAST 1250 HOURS A YEAR OR ABOUT 24 HOURS A WEEK BUT COMPANIES MAY EXEMPT CERTAIN KEY EMPLOYEES DEFINED AS THE HIGHEST PAID 10 OF EMPLOYEES EMPLOYEES WHO TAKE LEAVE ARE GUARANTEED HEALTH BENEFITS AND UPON THEIR RETURN THEY MUST BE GIVEN BACK THEIR ORIGINAL JOBS OR EQUIVALENT POSITIONS THEY ARE REQUIRED TO PROVIDE 30DAYS ADVANCE NOTICE WHEN THE LEAVE IS FORESEEABLE EMPLOYERS MAY REQUEST MEDICAL CERTIFICATION TO SUPPORT A REQUEST FOR A LEAVE MOREOVER COMPANIES MAY REQUIRE WORKERS TO OBTAIN ADDITIONAL MEDICAL PROOF FROM A HEALTHCARE PROVIDER OF THE COMPANY'S CHOICE AT THE EMPLOYER'S EXPENSE BECAUSE OF LOBBYING BY A VARIETY OF ORGANIZATIONS INCLUDING THE CHRISTIAN SCIENCE CHURCH THE DEFINITION OF HEALTHCARE PROVIDER IS BROAD INCLUDING CHRISTIAN SCIENCE PRACTITIONERS MIDWIVES AND CHIROPRACTORS SPOUSES EMPLOYED AT THE SAME COMPANY ARE ENTITLED TO A COMBINED 12 WEEKS OF LEAVE FOR A BIRTH OR ADOPTION OR FOR CARE OF AN ILL RELATIVE UNDER MANY CIRCUMSTANCES EMPLOYEES CAN TAKE THEIR LEAVE INTERMITTENTLY WHERE THEY CAN REDUCE THEIR NORMAL WEEKLY OR DAILY WORK SCHEDULE HOWEVER IN CASES OF BIRTH OR ADOPTION SUCH INTERMITTENT LEAVE IS SUBJECT TO EMPLOYER APPROVAL THE LABOR DEPARTMENT HOPES THE RULES WILL PROVIDE A BETTER BALANCE BETWEEN THE DEMANDS OF WORK AND FAMILY LIFE SAID JOHN FRASER THE AGENCY'S ACTING ASSISTANT SECRETARY FOR EMPLOYMENT STANDARDS AT THE SAME TIME HE SAID THE REGULATIONS DO NOT AND I THINK COULD NOT DEAL WITH EVERY PARTICULAR CIRCUMSTANCE BUT THE RULES WON'T BRING A BIG CHANGE IN POLICIES FOR MANY LARGE COMPANIES THAT HAVE HAD FAMILY AND MEDICAL LEAVE RULES THAT MATCH OR EXCEED THE NEW FEDERAL REQUIREMENTS MOREOVER 34 STATES AND THE DISTRICT OF COLUMBIA HAVE SOME FAMILY AND MEDICAL LEAVE REGULATIONS FOR CORPORATIONS 12 OF THOSE JURISDICTIONS HAVE RULES AS STRONG AS THE FEDERAL GUIDELINES 9306040119 930604 FIRST CITIZENS FINANCIAL UNIT SILVER SPRING MD FIRST CITIZENS FINANCIAL CORP SAID THE OFFICE OF THRIFT SUPERVISION RELEASED ITS CITIZENS SAVINGS BANK UNIT FROM A CAPITAL DIRECTIVE IMPOSED ON THE BANK IN DECEMBER 1991 THE DIRECTIVE CALLED FOR CITIZENS SAVINGS TO MEET ALL APPLICABLE REGULATORY CAPITAL REQUIREMENTS BY JUNE 30 1993 AND ALSO LIMITED THE BANK'S ASSET SIZE FIRST CITIZENS SAID IT MET THE APPROPRIATE REGULATORY CAPITAL REQUIREMENTS ON DEC 31 1992 AND MARCH 31 1993 FIRST CITIZENS SAID IT REMAINS SUBJECT TO A SUPERVISORY AGREEMENT WITH THE OTS 9306040118 930604 ECONOMY FOREIGN FIRMS' INCOME IN US IS UNDERSTATED IRS BRIEFING PAPERS SHOW JAPAN UK AND CANADA TOP LIST OF 10 NATIONS BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE INTERNAL REVENUE SERVICE CALCULATED THAT COMPANIES FROM JAPAN THE UNITED KINGDOM AND CANADA UNDERSTATED THEIR USDERIVED INCOME BY MORE THAN 1 BILLION ON SOME 650 TAX RETURNS THAT WERE EXAMINED LAST YEAR ACCORDING TO INTERNAL AGENCY BRIEFING PAPERS THE DOCUMENTS WHICH THE ACCOUNTING FIRM ERNST & YOUNG OBTAINED UNDER THE FREEDOM OF INFORMATION ACT SHOW THAT OVERALL IN FISCAL 1992 THE IRS COMPLETED EXAMINING 3357 TAX RETURNS FOR FOREIGNCONTROLLED CORPORATIONS OF THOSE THE IRS FOUND THE COMPANIES HAD UNDERSTATED THE INCOME THEY EARNED ON US SOIL ON 1837 RETURNS OR ABOUT 55 OF THE TIME THE IRS BROKE OUT COUNTRYBYCOUNTRY DATA FROM 1248 OF THE RETURNS FILED BY COMPANIES FROM 10 LEADING NATIONS THE BULK OF THE ALLEGED UNDERSTATEMENT OF INCOME STEMMED FROM IMPROPERLY ACCOUNTING FOR THE PRICES OF ASSETS THAT WERE TRANSFERRED BETWEEN PARENT COMPANIES BASED OVERSEAS AND THEIR US OPERATIONS THE CLINTON ADMINISTRATION HAS PLEDGED TO CRACK DOWN ON SUCH TRANSFER PRICING ABUSE JAPAN TOPPED THE LIST OF 10 COUNTRIES IN TERMS OF THE AMOUNT OF INCOME THE IRS SAID WAS UNDERSTATED 507 MILLION BASED ON THE EXAMINATION OF 314 RETURNS BUT THE UNITED KINGDOM WASN'T FAR BEHIND IN STUDYING 229 RETURNS FROM UK COMPANIES THE IRS CONCLUDED THAT A TOTAL OF ABOUT 463 MILLION WAS UNDERSTATED WHENEVER I TALK TO UK COMPANIES THEY THINK THIS IS A JAPANESE ISSUE SAID MICHAEL PATTON A PARTNER WITH ERNST & YOUNG BUT JAPAN IS BY NO MEANS THE ONLY OFFENDER MR PATTON ALSO POINTED OUT THAT GOVERNMENT DATA INDICATE JAPAN SHIPS FAR MORE MERCHANDISE TO ITS US AFFILIATES THAN ANY OTHER COUNTRY TAKING THAT INTO ACCOUNT HE SAID THE UK CANADA AND GERMANY WOULD EACH APPEAR TO BE A BIGGER PROBLEM THAN JAPAN MORE BROADLY MR PATTON SAID HE WAS STRUCK THAT THE COMPANIES OF THE 10 NATIONS HAD ALLEGEDLY UNDERSTATED THEIR INCOME BY A TOTAL OF ONLY 13 BILLION THIS SUM IMPLIES AN ADDITIONAL US TAX OF ABOUT 462 MILLION THAT'S MUCH SMALLER THAN WHAT'S BEEN THROWN AROUND MR PATTON SAID INDEED DURING THE PRESIDENTIAL CAMPAIGN BILL CLINTON SAID HE COULD BRING INTO THE TREASURY AS MUCH AS 135 BILLION A YEAR THROUGH BEEFEDUP ENFORCEMENT IN THE TRANSFERPRICING AREA OTHER POLITICIANS HAVE USED EVEN HIGHER FIGURES MORE RECENTLY THOUGH THE ADMINISTRATION HAS RETREATED FROM ITS POSITION IN AN INTERVIEW EARLIER THIS WEEK FOR INSTANCE IRS COMMISSIONER MARGARET RICHARDSON POINTED TO PRESIDENT CLINTON'S BUDGET WHICH ESTIMATES THAT INCREASED ENFORCEMENT ON TRANSFER PRICING CASES SHOULD EVENTUALLY RAISE 1 BILLION ANNUALLY THAT PRESUMES IMPROVING THE COMPLIANCE OF NOT ONLY FOREIGN COMPANIES BUT USBASED MULTINATIONALS AS WELL IN ITS ANALYSIS OF THE IRS DOCUMENTS ERNST & YOUNG SAID THERE IS A LAG TIME BETWEEN THE YEARS FOR WHICH RETURNS ARE FILED AND WHEN THE IRS CLOSES AN EXAMINATION THOUGH THE IRS WRAPPED UP THIS SET OF EXAMINATIONS IN FISCAL 1992 WHICH ENDED LAST SEPT 30 THE RETURNS ARE LIKELY TO HAVE BEEN FROM 1988 OR EARLIER THE IRS ROUTINELY AUDITS THE TAX RETURNS OF ALL LARGE COMPANIES MOREOVER THE AMOUNT OF THE UNDERSTATED INCOME IS JUST THE WORD OF THE IRS'S INTERNATIONAL EXAMINERS IN THE PAST FOREIGNOWNED COMPANIES HAVE BEEN SUCCESSFUL IN DISPUTING THE AGENCY'S FINDINGS THE IRS HAS A LARGE STAKE IN INFLATING THESE ADJUSTMENTS ASSERTED NANCY MCLERNON OF THE ORGANIZATION FOR INTERNATIONAL INVESTMENT WHICH REPRESENTS THE US SUBSIDIARIES OF FOREIGNOWNED COMPANIES VERY OFTEN THEY ARE WAY OFF SHE ALSO CAUTIONED AGAINST USING A ONEYEAR SNAPSHOT TO JUDGE ANYTHING BESIDES THE INCOME THE FOREIGNCONTROLLED COMPANIES FROM THE 10 NATIONS WERE SAID TO HAVE UNDERSTATED THE IRS SAID IN ITS PAPERS THAT IT WAS SEEKING ADDITIONAL LEVIES AND PENALTIES TOTALING 1529 MILLION THE UK COMPANIES WERE DETERMINED TO OWE THE MOST IN ADDITIONAL TAXES AT 75 MILLION WITH THE JAPANESE COMPANIES NEXT AT 458 MILLION MOST OF THESE AMOUNTS REPRESENT WITHHOLDING TAXES CORPORATIONS FROM THE NETHERLANDS OWED BY FAR THE MOST IN PENALTIES ACCORDING TO THE IRS PAPERS AT 29 MILLION ASKED WHY AN IRS SPOKESWOMAN SAID SHE COULDN'T COMMENT ON ANY SPECIFIC COUNTRY 9306040117 930604 ECONOMY US AND JAPANESE TRADE NEGOTIATORS ANGLE FOR ADVANTAGE AHEAD OF TALKS BY DAVID WESSEL AND TERENCE ROTH STAFF REPORTERS OF THE WALL STREET JOURNAL PARIS US AND JAPANESE NEGOTIATORS WILL MEET IN WASHINGTON NEXT FRIDAY TO DISCUSS A FRAMEWORK ACCORD AIMED AT OPENING JAPANESE MARKETS AND US OFFICIALS ANGLED FOR CONCESSIONS BY ATTACKING TOKYO'S TRADE POLICIES AT INTERNATIONAL FORUMS HERE US TRADE REPRESENTATIVE MICKEY KANTOR TOLD REPORTERS AT THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT MEETING HERE THAT THE US PROPOSAL WOULD FOCUS ON SPECIFIC SECTORS AND WOULD INCLUDE WAYS TO MEASURE WHETHER PROGRESS IS MADE IN REDUCING JAPAN'S TRADE IMBALANCES WITH THE REST OF THE WORLD HE BACKED OFF FROM CALLS FOR FIXED TARGETS WHICH THE JAPANESE HAVE CRITICIZED AS A FORM OF MANAGED TRADE BUT MR KANTOR SAID THE US WOULD INSIST ON SOME FORM OF YARDSTICK FOR GAUGING PROGRESS MEASURABLE SUCCESS IS A PRINCIPLE WE WOULD LIKE TO ADHERE TO HE SAID TOKYO LAST WEEK PRESENTED WASHINGTON WITH A LIST OF PRINCIPLES FOR ITS NEGOTIATIONS WITH THE US INCLUDING THE DEMAND THAT US AIMS FOR MANAGED TRADE WITH JAPAN BE EXCLUDED FROM THE TALKS NO DISCUSSIONS WILL BE MADE FOR THE PURPOSE OF SETTING NUMERICAL TARGETS KOICHIRO MATSUURA JAPAN'S DEPUTY FOREIGN MINISTER SAID HERE YESTERDAY HE ADDED JAPAN HASN'T YET RECEIVED A DETAILED US PROPOSAL FOR NEXT WEEK'S TALKS AS THE TALKS WERE BEING PUT TOGETHER TREASURY SECRETARY LLOYD BENTSEN WAS LASHING OUT AT JAPANESE PRACTICES FOR FOUR DECADES WE ACCEPTED PROTECTIONISM ELSEWHERE AS THE PRICE OF STABILITY AND WINNING THE COLD WAR BUT THAT DAY IS OVER HE SAID YESTERDAY AT THE ANGLOAMERICAN PRESS CLUB IN PARIS WE FACE A FURTHER EROSION OF THE BASE OF SUPPORT FOR MAINTAINING FREE TRADE AND A STRONG OPEN MULTILATERAL TRADING SYSTEM UNLESS THERE IS FUNDAMENTAL CHANGE BY JAPAN IN ITS DEALINGS WITH ITS TRADING PARTNERS HE ADDED MR BENTSEN AND OTHER US OFFICIALS INCREASINGLY BLAME JAPAN FOR MUCH OF WHAT AILS THE WORLD ECONOMY MR BENTSEN SAID JAPAN'S HUGE TRADE SURPLUS HURTS WORLD GROWTH AND HE CONTINUED HIS CALL ON JAPAN TO STEP UP GOVERNMENT SPENDING OR CUT TAXES TO STRENGTHEN ITS ECONOMY THE WHITE HOUSE AWARE THAT THE JAPANESE ARE EAGER FOR A SUCCESSFUL GROUP OF SEVEN SUMMIT IN EARLY JULY IN TOKYO IS PRESSING FOR CONCESSIONS IN BOTH GLOBAL AND BILATERAL TRADE TALKS BEFORE THE SUMMIT COMMERCE SECRETARY RON BROWN SAID THAT DESPITE JAPANESE RESISTANCE THE ADMINISTRATION IS PRESSING AHEAD WITH ITS EFFORT TO SET NUMERICAL GOALS FOR JUDGING JAPAN'S EFFORTS TO SHRINK ITS TRADE SURPLUS JAPAN DOESN'T WANT TO REPLICATE ITS PLEDGE TO GIVE FOREIGNERS 20 OF ITS SEMICONDUCTOR MARKET WE LIKE THAT MODEL BECAUSE IT WORKED MR BROWN SAID IN AN INTERVIEW WE ASSUME THE JAPANESE DON'T LIKE IT BECAUSE IT WORKED WE ARE ANXIOUS TO FIND THINGS THAT WORK BEFORE LEAVING ON A TRIP TO MOSCOW YESTERDAY MR BENTSEN WAS ASKED BY REPORTERS HERE WHETHER JACQUES ATTALI THE PRESIDENT OF THE EUROPEAN BANK FOR RECONSTRUCTION AND DEVELOPMENT SHOULD BE REPLACED I LEAVE THAT TO THE EUROPEANS MR BENTSEN SAID WHEN A BRITISH JOURNALIST PROTESTED THAT EUROPEANS SAY THE MATTER IS UP TO THE US MR BENTSEN REPLIED CUT IT OUT THE EUROPEANS WANT US TO COME IN AND RESOLVE THEIR PROBLEMS THE US IS A MAJOR SHAREHOLDER IN THE BANK WHICH HAS BEEN CRITICIZED FOR SPENDING MORE ON ITS OFFICES THAN IN LOANS TO NEW PRIVATE ENTERPRISES IN EASTERN EUROPE AND THE FORMER SOVIET UNION 9306040116 930604 DIEBOLD AGREES TO BUY BUSINESS CANTON OHIO DIEBOLD INC SAID IT AGREED TO ACQUIRE 80 OF HIDROMEX SA DE CV'S AUTOMATED TELLER MACHINE DISTRIBUTION UNIT AND SOME RELATED BUSINESSES TERMS WEREN'T DISCLOSED HIDROMEX BASED IN MEXICO CITY HAS BEEN DIEBOLD'S AUTOMATED TELLER DISTRIBUTOR IN MEXICO SINCE 1987 HIDROMEX HAS ABOUT 25 MILLION IN ANNUAL REVENUE FROM ATM SALES AND SERVICING DIEBOLD MAKES ATMS ELECTRONIC AND PHYSICAL SECURITY SYSTEMS AND SOFTWARE AND SYSTEMS FOR GLOBAL FINANCIAL AND COMMERCIAL MARKETS 9306040115 930604 MONEY FUND ASSETS DECLINE 206 BILLION WASHINGTON MONEY MARKET MUTUAL FUND ASSETS SLIPPED BY 206 BILLION TO 58039 BILLION FROM 58245 BILLION IN THE WEEK ENDED WEDNESDAY THE INVESTMENT COMPANY INSTITUTE SAID THE PREVIOUS WEEK'S FIGURE WAS REVISED ASSETS OF 632 RETAIL MONEY MARKET MUTUAL FUNDS FELL BY 8342 MILLION TO 38894 BILLION THE TRADE GROUP SAID ASSETS OF 396 TAXABLE MONEY MARKET FNDS IN THE RETAIL CATEGORY FELL BY 117 BILLION TO 30752 BILLION ASSETS OF 236 RETAIL TAXEXEMPT FUNDS ROSE BY 3312 MILLION TO 8142 BILLION ASSETS OF THE 266 INSTITUTIONAL MONEY MARKET FUNDS FELL BY 123 BILLION TO 19145 BILLION AMONG INSTITUTIONAL FUNDS THE ASSETS OF 215 TAXABLE MONEY MARKET FUNDS FELL BY 218 BILLION TO 17026 BILLION ASSETS OF 51 TAXEXEMPT FUNDS ROSE BY 9464 MILLION TO 2119 BILLION 9306040114 930604 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY FINANCIAL PLANNING THROUGH THE AGES BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL GET IN THE HABIT OF SAVING MONEY INVEST IN STOCKS FOR THE LONG HAUL AND PARTICULARLY IF YOU HAVE CHILDREN BE SURE TO HAVE A RUDIMENTARY WILL AND ADEQUATE LIFE INSURANCE THOSE ARE SOME OF THE MOST IMPORTANT FINANCIALPLANNING MOVES FOR PEOPLE IN THEIR 20S AND 30S PUTTING MONEY ASIDE FOR RETIREMENT CHILDREN'S EDUCATION OR A DOWN PAYMENT ON A HOUSE IS LESS FUN OF COURSE THAN SPENDING IT BUT STARTING A PROGRAM OF REGULAR SAVING IS THE VERY BEST THING THAT PEOPLE CAN DO FOR THEIR FINANCIAL FUTURE SAYS CLEVELAND FINANCIAL PLANNER KAREN W SPERO AIM TO SAVE 10 OF YOUR GROSS INCOME START WITH MUCH LESS IF YOU HAVEN'T BEEN SAVING AT ALL TO MAKE IT EASIER HAVE MONEY AUTOMATICALLY DEDUCTED FROM YOUR PAYCHECK OR BANK ACCOUNT AND IF YOU CAN'T SQUEEZE MORE DOLLARS OUT OF YOUR CURRENT BUDGET PLAN TO SAVE MOST OF YOUR NEXT RAISE LET UNCLE SAM OR YOUR EMPLOYER LEND A HAND WITH SOME OF YOUR SAVING FOR INSTANCE PEOPLE WHO AREN'T COVERED BY A RETIREMENT PLAN AT WORK CAN OFTEN MAKE TAXDEDUCTIBLE CONTRIBUTIONS TO INDIVIDUAL RETIREMENT ACCOUNTS EVEN BETTER THE 401K RETIREMENT SAVINGS PLANS OF MANY LARGE CORPORATIONS OFFER NOT JUST TAX ADVANTAGES BUT OFTEN A PROVISION UNDER WHICH THE EMPLOYER MATCHES HALF OF EACH EMPLOYEE'S CONTRIBUTION THAT'S FOUND MONEY THAT'S MONEY PEOPLE CAN'T AFFORD TO LEAVE ON THE TABLE SAYS DANIEL J CAHILL OF FINANCIAL PLANNER AYCO CORP IN ALBANY NY HOW TO INVEST THE MONEY PUT EMERGENCY FUNDS AND SUMS YOU EXPECT TO SPEND OVER THE NEXT FIVE YEARS IN CASH EQUIVALENTS SUCH AS BANK ACCOUNTS AND MONEY MARKET FUNDS BUT INVEST AT LEAST 60 OF THE MONEY IN A 401K PLAN OR OTHER RETIREMENT ACCOUNT IN A DIVERSIFIED PORTFOLIO OF COMMON STOCKS DURING THE PAST SEVERAL DECADES STOCKS HAVE RETURNED ABOUT 10 A YEAR FAR OUTPACING BOTH BONDS AND CASH ONE RULE OF THUMB RECOMMENDED BY AYCO TAKE YOUR AGE AND ADD A PERCENT SIGN YOU SHOULD HAVE NO MORE THAN THAT PERCENTAGE OF YOUR MONEY INVESTED IN FIXEDINCOME ASSETS SUCH AS BONDS INVEST THE REST IN STOCKS WHILE TRYING TO ACCUMULATE MONEY FOR THE FUTURE MAKE SURE YOUR BASIC SAFETY NET IS IN PLACE NOW REVIEW YOUR HEALTH BENEFITS AT WORK TO MAKE SURE YOU HAVE THE COVERAGE YOU NEED EVEN IF YOU ARE JUST RENTING AN APARTMENT BE SURE TO HAVE INSURANCE ON THE CONTENTS YOU DON'T NEED LIFE INSURANCE IF YOU DON'T HAVE DEPENDENTS ONCE YOU HAVE CHILDREN THOUGH YOU WILL PROBABLY NEED MORE THAN AT ANY LATER TIME IN LIFE WHILE EARLY DEATH IS VERY UNLIKELY THE POTENTIAL HARDSHIP IS HUGE NOTES MARTIN M SHENKMAN A TEANECK NJ ATTORNEY TERM INSURANCE IS USUALLY THE SIMPLEST AND LOWEST COST OPTION IF YOU HAVE KIDS ALSO COMMIT TO THE RATHER UNPLEASANT BUT ALSO RELATIVELY SIMPLE TASK OF GETTING A WILL WITHOUT A WILL STATE LAWS COULD DIVVY UP YOUR MONEY VERY DIFFERENTLY THAN YOU WOULD WISH AND MORE IMPORTANT IN THE EVENT BOTH YOU AND YOUR SPOUSE DIED A COURT WOULD PICK A GUARDIAN FOR THE CHILDREN WITHOUT YOUR HAVING A SAY A BIG GOAL FOR MANY PEOPLE IN THEIR 20S AND 30S IS TO BUY A HOUSE ALTHOUGH IT'S BY NO MEANS CERTAIN THAT BUYING WILL BE A BETTER DEAL ECONOMICALLY THAN RENTING FOR THOSE WHO REALLY DO WANT TO BUY MS SPERO ADVISES SPENDING NO MORE THAN 25 OF GROSS INCOME ON MORTGAGE PAYMENTS TAXES UTILITIES AND OTHER HOUSING EXPENSES TYING UP A LARGER PERCENTAGE OF CASH FLOW SHE SAYS CAN LEAVE COUPLES FEELING SO FINANCIALLY PRESSURED THAT THEY ARE AT EACH OTHER'S THROATS THESE YEARS CAN BE A REAL JUGGLING ACT PARTICULARLY FOR PEOPLE WHO HAD THEIR CHILDREN IN THEIR 30S SAYS KAREN SCHAEFFER A SILVER SPRING MD FINANCIAL PLANNER IDEALLY THESE ARE HIGHEARNING YEARS IN WHICH PEOPLE SHOULD BE ABLE TO SOCK AWAY LARGE SUMS TOWARD RETIREMENT BUT AT ABOUT THE TIME RETIREMENT BEGINS TO LOOM ON THE HORIZON MS SCHAEFFER SAYS YOUR KIDS ARE AT THEIR MOST EXPENSIVE TAKE A LOOK EITHER ON YOUR OWN OR WITH A PROFESSIONAL AT HOW FAR YOUR RESOURCES AND CURRENT SAVINGS WILL GO TO FINANCE THE TWIN GOALS OF RETIREMENT AND CHILDREN'S COLLEGE EDUCATION NOTE THAT PARENTS' ATTITUDES TOWARD COLLEGE COSTS VARY WIDELY SOME PEOPLE FEEL THEY OUGHT TO GIVE THE KIDS EVERYTHING SAYS CHRISTOPHER D CROFT AN INVESTMENT COUNSELOR IN PALO ALTO CALIF WHILE OTHERS ARE OF THE VIEW THAT THE KIDS CAN PAY A PORTION OF THEIR OWN WAY MONEY YOU WILL SPEND ON COLLEGE BILLS WITHIN THE NEXT FIVE YEARS SHOULD BE SHIFTED TO LOWRISK VEHICLES SUCH AS BANK ACCOUNTS MEANWHILE TRY TO MAXIMIZE CONTRIBUTIONS TO TAXADVANTAGED RETIREMENT PLANS SUCH AS 401K SAVINGS PLANS AT WORK OR KEOGH PLANS FOR THE SELFEMPLOYED PUTTING HEFTY SUMS AWAY SHOULD GET A LOT EASIER ONCE THE COLLEGE BILLS ARE OUT OF THE WAY AVOID TAPPING THOSE LONGTERM SAVINGS FOR SHORTTERM NEEDS SUCH AS BY TAKING A 401K PLAN LOAN TO BUY A NEW CAR HOW MUCH YOU NEED TO SAVE FOR RETIREMENT DEPENDS IN PART ON WHAT YOU'VE DONE TO DATE NEW YORK FINANCIAL PLANNER LEWIS J ALTFEST SAYS PEOPLE SHOULD GENERALLY PUT ASIDE 7 OF THEIR GROSS INCOME IF THEY START SAVING AT AGE 25 AND 10 AT AGE 35 BUT IF YOU DON'T START UNTIL AGE 45 HE SAYS AIM FOR A STIFF 18 OF INCOME HIS TARGET FOR THOSE STARTING AT AGE 55 35 ONE PIECE OF SORT OF GOOD NEWS OVER THE YEARS AS YOUR INCOME HAS GROWN YOU MAY HAVE SEEN YOUR SPENDING CLIMB APACE BUT AT THIS STAGE OF LIFE YOU PROBABLY HAVE MORE FLEXIBILITY TO TRIM SOME DISCRETIONARY SPENDING AND SET MORE MONEY ASIDE THAN DO PEOPLE IN THEIR EARLY 20S WHO ARE STRUGGLING TO PAY THE RENT AS YOUR INVESTMENT PORTFOLIO GROWS WORK AT KEEPING IT SIMPLE MUTUAL FUNDS WHICH POOL THE INVESTMENT DOLLARS OF MANY PEOPLE ARE THE EASIEST VEHICLE TO USE LEARNING TO JUST SAY NO TO COMPLICATED FINANCIAL PRODUCTS IS A VERY BIG STEP SAYS JAMES E WILSON A COLUMBIA SC FINANCIAL PLANNER THE LARGEST SHARE OF YOUR LONGTERM HOLDINGS SHOULD BE IN STOCKS AND STOCK FUNDS WHICH HISTORICALLY HAVE FAR OUTPERFORMED BONDS AND CASH EQUIVALENTS SUCH AS TREASURY BILLS ADD UP ALL YOUR INVESTMENT HOLDINGS TO SEE HOW THE MONEY IS SPREAD AMONG THESE AND OTHER CATEGORIES DECIDE ON AN APPROPRIATE ASSET ALLOCATION BEFORE YOU MAKE ANY MORE DECISIONS ABOUT INDIVIDUAL SECURITIES OR FUNDS TO BUY OR SELL REVIEW YOUR BASIC SAFETY NET INCLUDING LIFE INSURANCE HEALTH INSURANCE AND HOMEOWNERS COVERAGE AN UMBRELLA LIABILITY POLICY WHICH INCREASES THE AMOUNT YOUR INSURER WILL PAY IF YOU ARE SUED IS AN INEXPENSIVE AND WISE ADDITION TO HOMEOWNERS COVERAGE AND CONSIDER BUYING DISABILITY INSURANCE PARTICULARLY IF YOU DON'T HAVE ANY SUCH COVERAGE AT WORK FINALLY RESOLVE TO DEVOTE SOME TIME TO THE TASK OF GETTING YOUR WILL IN SHAPE WILLIAM G BRENNAN A WASHINGTON FINANCIAL PLANNING SPECIALIST WITH ACCOUNTANTS ERNST & YOUNG SAYS MOST OF HIS NEW CLIENTS HAVE WILLS THAT ARE OUTDATED IF THEY HAVE WILLS AT ALL THE PRIMARY GOAL FOR MANY PEOPLE IN THEIR EARLY 60S IS TO RETIRE AS SOON AS POSSIBLE BUT DON'T ACT UNLESS YOU ARE SURE YOU HAVE ENOUGH FUNDS TO AFFORD THE LIFESTYLE YOU WANT FOR WHAT MAY BE 30 MORE YEARS THE BIG MISTAKE I SEE IS PEOPLE RETIRING TOO YOUNG SAYS KAREN SCHAEFFER A SILVER SPRING MD FINANCIAL PLANNER HER ADVICE TO CLIENTS INCLINED TO RETIRE BEFORE AGE 65 GET YOURSELF A JOB YOU LIKE MAYBE A JOB THAT IS PARTTIME BUT DON'T CUT YOURSELF OFF FROM EARNINGS POTENTIAL MANY RETIREES MUST DECIDE WHETHER TO TAKE A LUMPSUM PAYMENT FROM A COMPANY SAVINGS PLAN AND IF SO HOW TO INVEST THAT MONEY FOR MOST PEOPLE THIS IS PROBABLY THE BIGGEST CHUNK OF MONEY THEY ARE EVER GOING TO GET AT ONE POINT IN LIFE NOTES CHRISTOPHER D CROFT AN INVESTMENT COUNSELOR IN PALO ALTO CALIF ONE THING YOU SHOULDN'T DO IS PUT ALL THOSE DOLLARS INTO FIXEDINCOME SECURITIES SUCH AS BANK ACCOUNTS AND BONDS KEEP SOME MONEY IN STOCKS BECAUSE THEY ARE LIKELY TO PROVIDE HIGHER RETURNS AND HELP YOU STAY AHEAD OF INFLATION OVER WHAT COULD BE MANY MORE YEARS OF LIFE AT AGE 70 PEOPLE SHOULD GENERALLY HAVE 20 TO 40 OF THEIR PORTFOLIOS IN STOCKS SAYS MALCOLM H GISSEN A SAN FRANCISCO FINANCIAL PLANNER WHILE INVESTING FOR A LONG LIFE MAKE SURE YOU HAVE PLANNED APPROPRIATELY FOR THE POSSIBILITY OF BECOMING INCAPACITATED OR DYING TOMORROW MANY PEOPLE ARE JUSTIFIABLY AFRAID OF THE COST OF AN EXTENDED NURSING HOME STAY WHICH IS GENERALLY NOT COVERED BY EITHER MEDICARE OR PRIVATE MEDICARE SUPPLEMENT INSURANCE ONE OPTION TO CONSIDER IS THE LONGTERM CARE POLICIES OFFERED BY MANY INSURERS MEANWHILE THERE ARE FOUR CRITICAL DOCUMENTS THAT EVERYONE SHOULD HAVE ACCORDING TO TEANECK NJ ATTORNEY MARTIN M SHENKMAN A POWER OF ATTORNEY AUTHORIZING SOMEONE TO MANAGE YOUR FINANCES IF YOU BECOME SICK OR DISABLED A LIVING WILL OR HEALTHCARE PROXY AUTHORIZING SOMEONE TO MAKE MEDICAL DECISIONS ON YOUR BEHALF IF YOU ARE UNABLE A WILL TO PROVIDE FOR THE DISTRIBUTION OF ASSETS AND A LIST OF BASIC INFORMATION FOR SURVIVORS INCLUDING THE LOCATION OF BANK ACCOUNTS AND THE NAMES OF PROFESSIONAL ADVISERS IF YOU HAVE MORE MONEY THAN YOU WILL EVER NEED AND YOU ARE ABSOLUTELY POSITIVE ABOUT THAT CONSIDER MAKING SUBSTANTIAL GIFTS TO FAMILY MEMBERS AND CHARITIES BESIDES THE EMOTIONAL SATISFACTION OF MAKING GIFTS WHILE YOU ARE ALIVE SUCH MOVES TRIM THE ESTATE TAX THAT MUST BE PAID WHENEVER SOMEONE DIES LEAVING MORE THAN 600000 TO PEOPLE OTHER THAN A SURVIVING SPOUSE OTHER MOVES SHOULD ALSO BE CONSIDERED TO TRIM THE POTENTIAL ESTATETAX BILL OR MAKE THE PAYMENT MORE MANAGEABLE FOR INSTANCE PEOPLE CAN REMOVE LIFEINSURANCE DEATH BENEFITS FROM THEIR ESTATES BY TRANSFERRING THEIR LIFEINSURANCE POLICIES TO A SPECIAL KIND OF TRUST AND PEOPLE WHOSE WEALTH IS TIED UP IN REAL ESTATE OR OTHER ILLIQUID ASSETS SHOULD CONSIDER SETTING UP A TRUST TO PURCHASE NEW LIFE POLICIES TO PROVIDE ADDED CASH FOR THE ESTATETAX PAYMENTS BUT DON'T FEEL YOU HAVE TO PRESERVE ALL YOUR WEALTH FOR OTHERS INDEED MR CROFT SAYS HE FINDS HIMSELF NUDGING SOME CLIENTS TO LIVE IT UP IF THEY HAVE ENOUGH RESOURCES I TRY AND ENCOURAGE THEM TO GET OUT AND SPEND AND ENJOY AND TRAVEL WHILE THEY ARE HEALTHY HE EXPLAINS AFTER A LIFETIME OF WORKING AND SAVING HE SAYS THE MONEY IS FOR THEM AND THEY OUGHT TO ENJOY IT SEE RELATED STORIES HOW TO START TAKING CONTROL OF YOUR FINANCES AND TO GET AHEAD YOU'VE REALLY GOT TO KNOW WHERE YOU'RE STARTING FROM WSJ JUNE 4 1993 9306040113 930604 CYPRUS MINERALS CO DENVER CYPRUS MINERALS CO SAID IT COMPLETED ITS ACQUISITION OF MCILWRAITH MCEACHARN LTD A SYDNEYBASED COAL COMPANY THAT HOLDS 40 OF OAKBRIDGE LTD OF AUSTRALIA OAKBRIDGE PRODUCES ABOUT 11 MILLION TONS OF COAL A YEAR CYPRUS SAID IT OBTAINED OVER 99 OF MCILWRAITH COMMON STOCK IN ITS TENDER OFFER CYPRUS HAS ALSO RECEIVED TENDERS FOR 64 OF THE COMPANY'S PREFERENCE SHARES THE ACQUISITION HAS MET GOVERNMENT APPROVAL THE MINING COMPANY SAID 9306040112 930604 INTERNATIONAL WORLD ECONOMY TRADE RIGHTS AS WELL AS CIVIL RIGHTS WILL FACTOR INTO CHINA'S MFN STATUS BY ROBERT KEATLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON CHINA AGAIN HAS WON A YEAR OF FAVORABLE TARIFF TREATMENT FROM THE US BUT WILL IT WIN ANOTHER UNDER THE CLINTON ADMINISTRATION'S POLICY THAT DEPENDS LARGELY UPON HOW CHINA TREATS POLITICAL DISSENTERS PLUS HOW FREELY IT SELLS ADVANCED WEAPONS TO NASTY REGIMES AROUND THE WORLD BEIJING CALLS SUCH CONDITIONS SERIOUS INTERFERENCE IN ITS INTERNAL AFFAIRS AND ITS INTENTIONS AREN'T CLEAR BUT CONTINUED FAVORABLE TRADE TREATMENT ALSO DEPENDS IN PRACTICE MORE THAN LAW ON JUST WHAT KIND OF TRADING PARTNER CHINA PROVES TO BE AND HERE TOO THE PROSPECTS ARE MURKY DESPITE SEVERAL MAJOR ECONOMIC AGREEMENTS WITH THE US AN IMPORTANT PROBLEM LINGERS CHINA DOESN'T ALWAYS ENFORCE THE RULES WHAT'S AT STAKE IS SOCALLED MOSTFAVOREDNATION TARIFF TREATMENT IN FACT NORMAL RATES WHICH GIVES CHINESE GOODS EASY ACCESS TO THE RICH US MARKET THE ALTERNATIVES ARE PUNITIVE DUTIES THAT WOULD SHARPLY CUT CHINA'S TRADE SURPLUS WITH THE US 18 BILLION IN 1992 DOLLARS CRUCIAL TO ITS ECONOMIC DEVELOPMENT OFFICIALLY TRADE DISPUTES AREN'T LINKED TO MFN TERMS BUT POLITICS SAY OTHERWISE TRADE QUARRELS COULD SOUR THE MFN DEBATE AND MAKE ANOTHER EXTENSION DIFFICULT FOR PRESIDENT CLINTON ESPECIALLY IF HUMAN RIGHTS AND WEAPONS PROBLEMS PERSIST HERE ARE SOME OF THE THORNIER TRADE PROBLEMS MARKET ACCESS UNDER AN AGREEMENT SIGNED IN OCTOBER CHINA PROMISED TO OVERHAUL MUCH OF ITS TRADE REGIME BUT US OFFICIALS WHO HAVE VISITED BEIJING TWICE SINCE THEN TO DISCUSS ENFORCEMENT AREN'T SATISFIED FOR EXAMPLE CHINA VOWED TO ELIMINATE MOST INFORMAL TRADE BARRIERS AGAINST FOREIGN GOODS WITHIN FIVE YEARS ONE KEY PROMISE IS TO PUBLISH IMPORT REGULATIONS AND APPLY THEM FAIRLY MANY ARE SECRET AND ARBITRARY BUT PROGRESS IS SLOW THUS A FOREIGN BUSINESS CAN BE TOLD ITS PRODUCTS CAN'T ENTER CHINA BECAUSE UNPUBLISHED QUOTAS ARE FILLED THIS MIGHT BE AN INVITATION FOR A BRIBE BUT ALSO CAN BE A BUREAUCRATIC DECISION AGAINST CERTAIN IMPORTS FOR UNSTATED REASONS THE SECRET QUOTA PROBLEM TROUBLES US FILM DISTRIBUTORS AMONG OTHERS STANDARDS ARBITRARY AND CONTRADICTORY RULES CAN INHIBIT MANY IMPORTS THE CHINESE WHO USE MANY ITEMS FOR MEDICAL PURPOSES THAT WOULD BE CONSIDERED BIZARRE IN THE WEST OFTEN RESTRICT US OR OTHER GOODS FOR BOGUS HEALTH AND SAFETY REASONS THE REAL REASONS INCLUDE RATIONING SCARCE FOREIGN EXCHANGE OR PROTECTING A DOMESTIC INDUSTRY THIS IS DEFINITELY A PROTECTION MEASURE SAYS ONE US EXPERT BY OCTOBER CHINA HAS PROMISED TO REMOVE SCIENTIFICALLY UNJUSTIFIED RULES AFFECTING SUCH THINGS AS CITRUS FRUIT APPLES AND WHEAT PLUS OTHERS ON WOOD PRODUCTS AND LIVESTOCK PRISON LABOR THIS ITEM IS SPECIFICALLY LINKED TO MFN RENEWAL AS A HUMAN RIGHTS CONCERN LAST YEAR CHINA PROMISED TO STOP EXPORTING GOODS MADE BY FORCED LABOR BUT DOUBTS PERSIST ONE MONITORING GROUP CLAIMS CHINA STILL SHIPS 1 BILLION WORTH YEARLY BY SUCH SUBTERFUGES AS MIXING PRODUCTS WRENCHES FROM A PRISON WITH THOSE FROM A REGULAR FACTORY FOR EXAMPLE OR BY SIMPLY RELABELING THEM TRANSSHIPPING TEXTILES IT'S CLAIMED CHINA EVADES TRADE AGREEMENTS BY MISLABELING TEXTILES AND IGNORING COMPLEX INTERNATIONAL RULES IT PROMISED TO HONOR US CUSTOMS OFFICIALS SAY THIS INVOLVES AS MUCH AS 4 BILLION WORTH YEARLY AND HASN'T STOPPED INTELLECTUAL PROPERTY CHINA HAS PASSED ADMIRABLE LAWS PROTECTING PATENTS AND COPYRIGHTS AMONG OTHER THINGS IT ALSO PROMISES TO ENFORCE THEM YET PIRACY OF AUDIO AND VIDEO TAPES PERSISTS IN CHINA AS IN OTHER ASIAN COUNTRIES THE US RECORDING INDUSTRY WILL ESTABLISH MONITORS TO HELP KEEP OFFICIAL US PRESSURE ON CHINA TO APPLY THE LAWS MORE RIGOROUSLY THE REASONS FOR THIS MIXED ENFORCEMENT RECORD VARY THE CENTRAL GOVERNMENT CAN'T ALWAYS CONTROL OTHER AGENCIES EVEN THOSE RUN BY RELATIVES OF TOP BEIJING LEADERS THUS VIOLATIONS MAY OCCUR EVEN WHEN NEGOTIATORS ACT IN GOOD FAITH WE HAVE A BETTER SYSTEM OF CENTRALIZED CONTROL THAN BEIJING DOES SAYS A FORMER US GOVERNMENT CHINA SPECIALIST OTHERS DISAGREE THEY SAY CHINA CURBED IMPORTS EFFECTIVELY IN THE 1980S WHEN IT WANTED TO SO THERE'S NO REASON IT CAN'T EXPAND THEM NOW THE REAL EXPLANATION THEY INSIST IS THAT BEIJING STILL LIMITS IMPORTS CONSIDERED IRRELEVANT TO ECONOMIC GROWTH AND PROTECTS TRADE SURPLUSES THUS IT DOES ONLY THE MINIMUM NEEDED TO MUTE AMERICAN COMPLAINTS 9306040111 930604 INTERNATIONAL WITH CONSTITUTIONAL CONVENTION TO OPEN YELTSIN MANEUVERS AGAINST HIS ENEMIES BY CLAUDIA ROSETT STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW WITH THE OPENING TOMORROW OF AN HISTORIC ASSEMBLY TO WRITE A NEW CONSTITUTION PRESIDENT BORIS YELTSIN HOPES TO GET ON WITH THE JOB OF TRANSFORMING RUSSIA'S POSTCOMMUNIST FREEFORALL INTO A COHERENT DEMOCRATIC SYSTEM BUT EVEN THOUGH CHANGE THESE PAST FEW YEARS HAS COME AT A RECORD CLIP MR YELTSIN WILL HAVE TO DO SOME SERIOUS MANEUVERING TO GET PAST PARLIAMENT AND AROUND ENEMIES INCLUDING PARLIAMENTARY CHAIRMAN RUSLAN KHASBULATOV USING THE STRENGTH OF POPULAR SUPPORT SHOWN FOR HIM IN THE APRIL 25 REFERENDUM MR YELTSIN HAS ALREADY BEGUN YELTSIN UNDERSTANDS HE HAS MOMENTUM AFTER THE REFERENDUM AND HE WANTS TO USE IT SAYS A WESTERN DIPLOMAT REPLACING THE TATTERED 1978 BREZHNEV CONSTITUTION WITH SOMETHING MORE FITTING FOR A MARKET DEMOCRACY HAS BEEN AN URGENT TASK SINCE THE 1991 COLLAPSE OF THE SOVIET UNION THE BIG OBSTACLE HAS BEEN A PARLIAMENT STILL PACKED WITH SOVIETPICKED DEPUTIES WHO UNDER THE LINGERING SOVIETERA CONSTITUTION SERVE AS THE MOST POWERFUL BRANCH OF GOVERNMENT AND DON'T FACE NEW ELECTIONS UNTIL 1995 THE DEPUTIES HAVE A BIG SAY IN THE MAKING OF ANY NEW RULES AND THEY TEND TO BALK AT ANYTHING THAT REDUCES THEIR CLOUT IT IS THESE SAME PEOPLE'S DEPUTIES WHOSE EFFORTS TO STOP MR YELTSIN'S REFORMS HAVE SINCE LATE 1992 LOCKED THE GOVERNMENT IN NEARGRIDLOCK SO AFTER WINNING A PUBLIC VOTE OF CONFIDENCE IN THE APRIL 25 REFERENDUM MR YELTSIN LAST MONTH DECREED THAT SOME 760 DELEGATES FROM ALL OVER RUSSIA SHOULD GATHER AT THE KREMLIN IN MOSCOW BETWEEN TOMORROW AND JUNE 16 TO HAMMER OUT A CONSTITUTION THEIR MISSION IS TO CONSIDER AND REVISE A DRAFT CONSTITUTION INTO A FINAL DOCUMENT IN JUST 11 DAYS TO PRESENT TO THE RUSSIAN PEOPLE FOR AMERICANS NEWS OF RUSSIAN DELEGATES GATHERING FROM THE FAR CORNERS OF THEIR NATION TO WRITE A NEW CONSTITUTION MAY EVOKE IMAGES OF AMERICA'S OWN FOUNDING FATHERS MEETING IN PHILADELPHIA WITH THEIR QUILL PENS AND DREAMS OF A MORE PERFECT UNION THAT ISN'T QUITE WHAT'S IN THE CARDS HERE IN 1787 SEPARATE AMERICAN COLONIES CAME TO UNIFY IN RUSSIA 1993 PEOPLE SHACKLED TOGETHER MOST OF THEIR LIVES BY MOSCOWDIRECTED CENTRAL PLANNING COULD USE A LITTLE LESS TOGETHERNESS A WESTERN DIPLOMAT HERE POINTS OUT THAT THEY MUST DECENTRALIZE THE DRAFT CONSTITUTION MR YELTSIN PLANS TO SUBMIT TO THE DELEGATES WOULD CREATE A FAR MORE POWERFUL PRESIDENCY AND A SHARPER DIVISION OF POWERS THAN RUSSIA'S INSTITUTIONS PROVIDE TODAY IT WOULD ALSO IN WORDY FASHION ENSHRINE PRIVATE PROPERTY RIGHTS ALONGSIDE AN ARRAY OF SOCIAL SAFETY NETS THAT THE COUNTRY PROBABLY CAN'T AFFORD ANYTIME SOON BUT ANALYSTS EXPECT THE BASIC HORSETRADING AT MR YELTSIN'S CONSTITUTIONAL ASSEMBLY TO CENTER ON THE PRESIDENT GIVING UP SOME DEGREE OF CENTRAL CONTROL IN EXCHANGE FOR WIDESPREAD REGIONAL SUPPORT OF HIS NEW CONSTITUTION SUCH A TRADEOFF IS HOW MR YELTSIN JUST MIGHT MANAGE TO GET A NEW CONSTITUTION ADOPTED DESPITE THE CONSERVATIVES IN PARLIAMENT WHERE SOME DEPUTIES IN LIGHT OF THE APRIL REFERENDUM'S SUPPORT FOR MR YELTSIN SEEM TO BE RETHINKING WHERE TO PLACE THEIR BETS MR KHASBULATOV'S DEPUTY NIKOLAI RYABOV FOR EXAMPLE HAS IN RECENT WEEKS SWITCHED FROM BITTERLY ATTACKING MR YELTSIN TO ENDORSING A CONCILIATORY DEBATE ON A NEW BASIC LAW WITH ENOUGH BROAD SUPPORT MR YELTSIN COULD TRY TO CALL EARLY ELECTIONS FOR A NEW PARLIAMENT THAT MIGHT APPROVE HIS CHARTER OR HE COULD AIM FOR A REFERENDUM AND HOPE THAT A PUBLIC MAJORITY WOULD ADOPT THE PROPOSED CONSTITUTION ABOUT THE ONLY CLEAR AREA OF AGREEMENT SO FAR SEEMS TO BE THAT RUSSIA DOES NEED A NEW CONSTITUTION BUT MR YELTSIN'S BASIC LAW IS JUST ONE OF AT LEAST THREE DRAFT CONSTITUTIONS NOW MAKING THE ROUNDS THE LEAST LIKELY CONTENDER AN OPPOSITION COALITION INCLUDING THE REINSTATED COMMUNIST PARTY HAS ALSO PRODUCED A DRAFT BASIC LAW AND THIS WEEK OPENED A RIVAL CONSTITUTIONAL CONVENTION IN MOSCOW THE SUPREME SOVIET CONSTITUTIONAL COMISSION HAS ALSO PRODUCED ITS OWN DRAFT BASIC LAW DRAWN UP BY A JOINT PARLIAMENTARYPRESIDENTIAL COMMITTEE ON WHICH MR YELTSIN HIMSELF SERVED AS CHAIRMAN BEFORE SPINNING OFF HIS CURRENT DRAFT THIS VERSION CALLING FOR A LESS POWERFUL PRESIDENCY THAN MR YELTSIN'S DRAFT IS FAVORED BY MANY IN PARLIAMENT BUT IT ALSO SEEMS UP FOR NEGOTIATION THE COMMISSION'S EXECUTIVE SECRETARY OLEG RUMYANTSEV TOLD REPORTERS YESTERDAY THAT HE FAVORS HARMONIZING THE VARIOUS CONSTITUTIONAL PROPOSALS WE HAVE MANY CONSTITUTIONAL CONFERENCES AND NONE OF THEM SHOULD HAVE A MONOPOLY HE NOTED MEANTIME THE PARLIAMENTARY SPEAKER MR KHASBULATOV HAS BEEN DENOUNCING MR YELTSIN AS USUAL AND CALLING FOR A REFERENDUM ON ALL THREE DRAFT CONSTITUTIONS BUT AS ONE ANALYST PUT IT MR KHASBULATOV SEEMS TO HAVE REALIZED THAT THE TRAIN WAS LEAVING THE STATION WITHOUT HIM MR KHASBULATOV FOR ALL HIS PROTESTS AGAINST MR YELTSIN'S QUEST FOR A NEW CONSTITUTION HAS NOW AGREED TO SERVE AS THE PARLIAMENT'S OFFICIAL DELEGATE TO MR YELTSIN'S CONSTITUTIONAL ASSEMBLY 9306040110 930604 SHARES OF SEARS'S ALLSTATE IPO CLIMB BY 88 ENTHUSIASM OF INSTITUTIONS SHARED BY SMALL BUYERS STOCK CLOSES UP 2375 BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL ALLSTATE CORP SHARES ROSE 88 ON ITS FIRST DAY OF TRADING AS INSTITUTIONAL ENTHUSIASM FOR THE STOCK SPILLED OVER TO RETAIL INVESTORS THE MOVE CAME AS UNDERWRITERS FOR THE STOCK OFFERING LED BY GOLDMAN SACHS & CO EXERCISED THEIR OPTION TO ACQUIRE ANOTHER 11 MILLION ALLSTATE SHARES AT THE ORIGINAL OFFERING PRICE OF 27 A SHARE THEIR DECISION BOOSTED THE SIZE OF THE ALLSTATE OFFERING TO 24 BILLION AND MADE THE BIGGEST EVER INITIAL PUBLIC OFFERING EVEN BIGGER ALLSTATE A UNIT OF SEARS ROEBUCK & CO WAS THE SECOND MOST ACTIVE STOCK ON THE NEW YORK STOCK EXCHANGE YESTERDAY WITH 28 MILLION OF ITS SHARES TRADED ALLSTATE ACCOUNTED FOR ABOUT 9 OF TOTAL VOLUME THE STOCK CLOSED AT 29375 UP 2375 FROM ITS OFFERING PRICE IN COMPOSITE TRADING ON THE BIG BOARD ON THE MIDWEST STOCK EXCHANGE WHERE ALLSTATE ALSO IS TRADED ANOTHER 14 MILLION SHARES CHANGED HANDS I WAS VERY BUSY TODAY SAID LAWRENCE AUGUSTYN A SPECIALIST ON THE FLOOR OF THE MIDWEST EXCHANGE FOR CHICAGOBASED BILLINGS & CO WE HAD AN AWFUL LOT OF RETAIL INTEREST THERE WERE A LOT OF PEOPLE WHO BOUGHT 100 SHARES 200 SHARES THINGS LIKE THAT INSTITUTIONAL INVESTORS ARE BELIEVED TO HAVE SNAPPED UP MOST OF THE SHARES INITIALLY OFFERED TO THE PUBLIC THE BURST OF INTEREST INDICATES ALLSTATE MIGHT HAVE BEEN ABLE TO SELL THE STOCK AT A HIGHER PRICE BUT AS IS OFTEN TYPICAL IN NEW OFFERINGS THE COMPANY LIKES TO SEE THE STOCK RISE IN THE EARLY DAYS OF TRADING SO INVESTORS WILL BE EAGER THE NEXT TIME NEW SHARES ARE ISSUED THE LOW PRICE WILL HELP ALLSTATE AND ITS PARENT SEARS IN THE LONG RUN STOCK ANALYSTS SAY SEARS STILL OWNS MORE THAN 80 OF ALLSTATE AND COULD SELL ADDITIONAL STAKES IN THE FUTURE THE SUCCESS OF THE ALLSTATE OFFERING SHOWS THAT INTEREST IN INITIAL PUBLIC OFFERINGS STILL RAGES IT'S IMPRESSIVE THERE IS SO MUCH MONEY FLOWING INTO THE SPECULATIVE MARKETS INSTEAD OF MONEY MARKETS SAID JOHN KEEFE PRESIDENT OF KEEFE WORLDWIDE A FINANCIAL SERVICES CONSULTING FIRM IN NEW YORK LAST TIME THERE WAS AN IPO CRAZE THE DEALS WERE FAIRLY SHABBY AT THIS POINT THE MOST RECENT IPO BOOM LASTED FROM 1983 TO OCTOBER 1987 WHEN THE STOCK MARKET CRASHED IF THE TRADITIONAL CYCLE ENDS WHEN THE MERCHANDISE GETS CRUMMY THEN WE HAVE SOME WAYS TO GO MR KEEFE SAID ALLSTATE IS THE 84TH INITIAL PUBLIC OFFERING TO BE LISTED ON THE NEW YORK STOCK EXCHANGE THIS YEAR A RECORD FOR THIS TIME OF YEAR SEARS DECIDED TO TAKE ALLSTATE PUBLIC TO HELP REDUCE THE PARENT'S DEBT AND RAISE MONEY SO IT CAN FOCUS ON RETAILING BY GOING PUBLIC ALLSTATE BECAME THE SECOND BIGGEST INVESTOROWNED INSURANCE COMPANY IN THE COUNTRY BEHIND AMERICAN INTERNATIONAL GROUP INC BASED ON MARKET CAPITALIZATION THIS IS AN IMPORTANT MILESTONE FOR ALLSTATE SAID WAYNE HEDIEN ALLSTATE'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9306040109 930604 TECHNOLOGY RHONEPOULENC RORER TO ACQUIRE 37 STAKE IN AIS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK RHONEPOULENC RORER INC SAID IT AGREED TO PAY 113 MILLION TO ACQUIRE A 37 STAKE IN BIOTECHNOLOGY COMPANY APPLIED IMMUNE SCIENCES INC ALONG WITH A FOOTHOLD IN THERAPIES IT SAYS WILL MAKE OBSOLETE SOME OF THE PHARMACEUTICALS USED TODAY RHONEPOULENC RORER SAID IT WILL ALSO GET THE RIGHT TO RAISE ITS OWNERSHIP IN THE SANTA CLARA CALIF CONCERN TO 60 BY 1997 YESTERDAY AIS SHARES ROSE 3875 OR 20 TO 22875 IN NATIONAL OVERTHECOUNTER TRADING WHILE RHONEPOULENC RORER SHARES FELL 50 CENTS TO 52875 IN NEW YORK STOCK EXCHANGE TRADING RHONEPOULENC RORER SAID ITS INVESTMENT IN AIS REFLECTS ITS BELIEF THAT MEDICINE WILL MOVE AWAY FROM TRADITIONAL APPROACHES OF TREATING SYMPTOMS WITH DRUGS FUTURE THERAPIES WON'T BE CHEMICALS IN THE FORM OF A PILL SAID MANFRED KAROBATH RHONEPOULENC HEAD OF RESEARCH AND DEVELOPMENT INSTEAD HE SAID THEY WILL BE TECHNIQUES THAT ENABLE THE BODY TO MAKE ITS OWN MEDICINE AIS DEVELOPED AND PATENTED TECHNOLOGY THAT ALLOWS PATIENTS' CELLS TO BE SEPARATED AND TREATED OUTSIDE OF THE BODY THEN RETURNED THE TECHNOLOGY AND RELATED PRODUCTS ARE BEING TESTED AS BONEMARROW TRANSPLANTS AND AIDS AND CANCER TREATMENTS THE DEAL IS THE LATEST IN A STRING OF INVESTMENTS BY LARGE PHARMACEUTICAL COMPANIES IN BIOTECHNOLOGY CONCERNS TO GAIN ACCESS TO CUTTINGEDGE RESEARCH IN MOLECULAR BIOLOGY AND GENETICS PAST TRANSACTIONS INCLUDE SANDOZ LTD'S STAKE IN SYSTEMIX INC AMERICAN CYANAMID CO'S INVESTMENT IN IMMUNEX CORP AMERICAN HOME PRODUCTS CORP'S STAKE IN GENETICS INSTITUTE AND ROCHE HOLDING LTD'S INTEREST IN GENENTECH INC THE INVESTMENTS REFLECT DECISIONS BY THE COMPANIES TO BUY RESEARCH RATHER THAN DEVELOP IT THEMSELVES A RISKY AND TIMECONSUMING PROCESS RHONEPOULENC RORER CHAIRMAN ROBERT E CAWTHORN SAID BUYING AIS ALLOWS IT TO AVOID PATENT PROBLEMS AND YEARS OF GOING UP THE LEARNING CURVE INHOUSE THE COMPANY CONTINUES TO HAVE ITS EYES AND EARS OPEN FOR OTHER OPPORTUNITIES HE SAID ACCORDING TO THEIR AGREEMENT RHONEPOULENC RORER WILL PURCHASE 43 MILLION NEWLY ISSUED SHARES OF AIS AND THE BIOTECHNOLOGY CONCERN WILL TENDER ABOUT 31 MILLION OR 30 OF ITS SHARES OUTSTANDING AT 30 A SHARE AFTER THE TRANSACTION AIS WILL HAVE 115 MILLION SHARES OUTSTANDING THE SHARE PRICE OF AIS HAS RISEN NEARLY 33 IN HEAVIER THAN USUAL TRADING IN RECENT DAYS A RHONEPOULENC RORER SPOKESMAN SAID THAT IT HAD CONFIDENTIALLY BRIEFED TOP SCIENTISTS ABOUT THE DEAL ABOUT A MONTH AGO BUT SAID THE COMPANY WASN'T AWARE OF ANY LEAKS AIS SAID A PRESENTATION WAS MADE AT THE AMERICAN SOCIETY OF CLINICAL ONCOLOGY'S ANNUAL MEETING ON MAY 18 OF A CLINICAL TRIAL USING THE COMPANY'S TECHNOLOGY IN KIDNEY CANCER PATIENTS BUT IT SAID IT COULDN'T EXPLAIN THE STOCK ACTIVITY OF THE PAST WEEK 9306040108 930604 MARKETING & MEDIA ADVERTISING ATLANTA TAVERN SAYS BUDWEISER WAS RACIALLY INSENSITIVE ON AD BY KEVIN GOLDMAN ONE OF THE MOST SUCCESSFUL LOCAL ADVERTISING CAMPAIGNS LAST YEAR WAS THE SERIES OF BUD LIGHT SPOTLIGHT COMMERCIALS THAT SHOWED ACTUAL BUD LIGHT DRINKERS FROM A DOZEN CITIES YUCKING IT UP AND HOLDING BOTTLES OF THE BREW ANHEUSERBUSCH WAS SO PLEASED WITH THE CAMPAIGN IN FACT THAT IT BROADENED THE EFFORT TO 20 MARKETS THIS YEAR ALL WAS GOING WELL AS NEW SPOTS WERE FILMED IN WASHINGTON NEW ORLEANS AND DENVER BUT BUD LIGHT RAN INTO TROUBLE WHEN IT PAID A VISIT TO DUGAN'S IN ATLANTA LAST MONTH THE FLAP THAT FOLLOWED WOULD ULTIMATELY ENTANGLE THE BREWER IN CHARGES OF RACIAL INSENSITIVITY THAT ANHEUSERBUSCH WANTED THE COMMERCIAL TO PICTURE WHITES IN THE LOCAL TAVERN EVEN THOUGH ITS CLIENTELE CONSISTS OVERWHELMINGLY OF BLACKS THE RESULTING FALLOUT UNDERSCORES THE SENSITIVE ISSUE OF RACE IN ADVERTISING AMONG MANY BLACKS THERE IS THE SUSPICION THAT MAINSTREAM MARKETERS EXCLUDE THEM FROM THEIR CAMPAIGNS PRACTICING A LATTERDAY KIND OF SEGREGATION BY TAILORING THEIR ADS TO WHITES OR BLACKS AND RARELY CROSSING THOSE LINES ANHEUSERBUSCH SAYS IT IS INVESTIGATING THE INCIDENT BUT SAYS THE DISPUTE AT DUGAN'S IS THE ONLY PROBLEM IN THE THREE YEARS OF THE CAMPAIGN IT'S A MISUNDERSTANDING SAYS BOB LACHKY BRAND DIRECTOR FOR BUD LIGHT THE ONE THING WE PRIDED OURSELVES ON IN THIS PROGRAM IS QUALITY PRODUCTS SERVICE AND MAKING FRIENDS WE WILL TAKE SERIOUS STEPS TO RECTIFY THIS A BUD LIGHT FILM CREW MOVED IN TO START SHOOTING AT DUGAN'S ON THE EVENING OF MAY 22 SAYS LOU CHAMBERS THE OWNER OF THE ATLANTA BAR BUD LIGHT'S SPOTLIGHT CAMPAIGN FROM OMNICOM GROUP'S DDB NEEDHAM'S CHICAGO OFFICE HAD HOPED TO FOCUS ON DUGAN'S AND ITS 350 PATRONS MR CHAMBERS WAS ONLY TOO DELIGHTED TO HAVE HIS EIGHTYEAROLD BAR AND RESTAURANT INCLUDED EVEN THOUGH THE AD WOULD SHOW THE INTERIORS WITHOUT FLASHING THE BAR'S NAME MR CHAMBERS SAYS REPRESENTATIVES FROM ANHEUSERBUSCH DISCUSSED INCLUDING SOME OF DUGAN'S EMPLOYEES AND CLIENTELE IN THE SPOT BUT WHEN THE CAMERA CREW SHOWED UP THAT SATURDAY NIGHT IT BROUGHT ABOUT 25 SOCALLED REAL BUD LIGHT CONSUMERS ONLY TWO OF WHOM WERE BLACK SAYS MR CHAMBERS AND DAVID ROHRING DUGAN'S GENERAL MANAGER BOTH OF WHOM WERE PRESENT THAT EVENING ACCORDING TO MR CHAMBERS A BUZZ STARTED IN THE CROWD THAT TURNED INTO A ROAR OF RESENTMENT TOWARD THE BUD LIGHT CREW YOU HAVE TO REMEMBER THAT BUDWEISER DIDN'T DO ANYTHING REALLY WRONG SAYS MR CHAMBERS WHO IS WHITE THEY WERE DOING WHAT THEY FELT WAS BEST FOR THEM BUT THIS KIND OF THING CREATES A TREMENDOUS PROBLEM FOR US WITH OUR REGULAR CLIENTS SO MR CHAMBERS TOLD THE FILM CREW WHICH HAD SPENT MORE THAN 2 1/2 HOURS SETTING UP TO GET OUT THE CREW LEFT WITHOUT INCIDENT THE SNAFU AT DUGAN'S POINTS UP A COMMON CONCERN AMONG AFRICANAMERICANS APPROXIMATELY 60 OF THE NATION'S 31 MILLION BLACK CONSUMERS BELIEVE THAT ADVERTISING IS DESIGNED ONLY FOR WHITE PEOPLE ACCORDING TO A RECENT SURVEY BY YANKELOVICH PARTNERS INC AND BURRELL COMMUNICATIONS GROUP YET 35 OF BLACK PEOPLE REPORT PAYING ATTENTION TO ADVERTISING COMPARED WITH A MUCH LOWER PERCENTAGE AMONG NONBLACKS THOMAS J BURRELL CHAIRMAN OF BURRELL WHICH SPECIALIZES IN BLACKORIENTED ADVERTISING SAYS ANHEUSERBUSCH HAS BEEN SENSITIVE TO AFRICANAMERICAN CONCERNS IN THE PAST BUT THAT THE SPAT IN ATLANTA SHOWS SOME INSENSITIVITY I'M SURPRISED DUGAN'S NO LONGER SERVES BUD LIGHT OR ANY OTHER ANHEUSERBUSCH PRODUCT AND MR CHAMBERS IS CONSIDERING YANKING THE BRANDS OUT OF 22 OTHER ESTABLISHMENTS IN WHICH HE HAS AN OWNERSHIP INTEREST THE OWNER SAYS EVERYONE IN THE INCIDENT INCLUDING ANHEUSERBUSCH IS A VICTIM BUT WHOEVER HAD THE RESPONSIBILITY OF SETTING THIS UP SHOULD HAVE BEEN MORE SENSITIVE TO THE BAR'S REGULAR PATRONS THE MINIBOYCOTT PROBABLY WON'T AFFECT THE STRONG SALES OF BUD LIGHT ACCORDING TO BEER MARKETER'S INSIGHTS BUD LIGHT SALES GREW 10 LAST YEAR TO 137 MILLION BARRELS FROM 124 MILLION A YEAR EARLIER IT HAS A 7 SHARE OF THE BEER MARKET SAYS BENJAMIN STEINMAN EXECUTIVE EDITOR OF BEER MARKETER'S RANKING IT NO 3 BEHIND TOPRATED BUDWEISER 232 AND MILLER LITE 92 AND AHEAD OF COORS LIGHT 64 MR LACHKY AT ANHEUSERBUSCH SAYS THAT IF THE INCIDENT HAPPENS AS THE PEOPLE THERE SAY IT DID IT'S UNFORTUNATE THE BUD LIGHT CONSUMERS IN THE ADS ARE CULLED FROM EARLIER CASTING CALLS AT AREA TAVERNS SOME OF THOSE FILMED ARE INVITED BACK ALTHOUGH NOT ALWAYS TO THEIR USUAL WATERING HOLE WE OFTEN HAVE CONSUMERS COME BACK TO ANOTHER LOCATION THEY DON'T NECESSARILY FREQUENT SAYS MR LACHKY MR LACHKY SAYS THE CAMERA CREWS HAVE ONGOING DIRECTIONS TO MIX LOCAL PATRONS WITH THOSE PREVIOUSLY SELECTED HE DIDN'T KNOW WHETHER THAT PROCEDURE WAS FOLLOWED AT DUGAN'S MR CHAMBERS COUNTERS THAT ANHEUSERBUSCH COULD REMEDY THE SITUATION BY SIMPLY FILMING A NEW COMMERCIAL AT DUGAN'S THAT ACCURATELY REFLECTS THE BAR'S BLACK CLIENTELE ANHEUSERBUSCH WON'T SAY WHETHER IT WOULD BE WILLING TO DO THAT THE BAR OWNER'S BAN ON BUD AND BUD LIGHT AMONG OTHER BRANDS HAS PERSONALLY AFFECTED HIS OWN DRINKING HABITS I'M A BUD DRINKER MR CHAMBERS SAYS AND I DON'T DRINK IT ANYMORE NOW I DRINK MILLER LITE ROBERT W KROYER PRESIDENT OF KETCHUM COMMUNICATIONS' US ADVERTISING OPERATIONS RESIGNED FROM THE AGENCY UNEXPECTEDLY AFTER AN APPARENT FALLING OUT WITH PAUL H ALVAREZ CHAIRMAN AND CHIEF EXECUTIVE OF THE PARENT COMPANY THE SURPRISE MOVE COMES AS KETCHUM IS TRYING HARD TO ESTABLISH A BIGGER BEACHHEAD IN NEW YORK FOR ITS ADVERTISING OPERATIONS THE COMPANY CLAIMS ABOUT 700 MILLION IN ADVERTISING BILLINGS INCLUDING FROM AMERICAN HONDA'S ACURA DIVISION THE AGENCY SAID MR KROYER 53 YEARS OLD RESIGNED BECAUSE HIS VISION DIFFERED FROM THAT OF MR ALVAREZ'S WE'RE LOOKING AT WHETHER WE HAVE TOO MANY OFFICES AND DO WE HAVE THEM IN THE RIGHT PLACES SAID MR ALVAREZ WHO IS A PROPONENT OF THE IDEA OF CONVERGENT COMMUNICATIONS IN WHICH TRADITIONAL MEDIA ADVERTISING CAN PLAY AS BIG A ROLE AS SALES PROMOTION OR PUBLIC RELATIONS WE WEREN'T SEEING EYE TO EYE ON THESE THINGS MR ALVAREZ SAID HE AND I THOUGHT IT BEST THAT HE MOVE ON IT WAS AN AMICABLE PARTING MR KROYER JOINED KETCHUM ADVERTISING'S SAN FRANCISCO OFFICE IN 1977 ON THE ACCOUNT MANAGEMENT SIDE OF THE BUSINESS AND WAS NAMED PRESIDENT OF THE US OPERATIONS IN 1988 MR ALVAREZ SAID THE AGENCY WOULD LOOK INTERNALLY AND ON THE OUTSIDE FOR A SUCCESSOR LAST YEAR KETCHUM HAD BEEN IN MERGER TALKS WITH AYER A SIMILARSIZE INDEPENDENT AGENCY BUT THE TALKS ENDED EARLIER THIS YEAR WHEN AYER GOT FINANCING FROM OUTSIDE INVESTORS KETCHUM HAS SAID IT ALSO COULD BE INTERESTED IN BUYING A NEW YORK AGENCY REGAL COMMUNICATIONS CORP'S REGAL GROUP THE LARGE INFOMERCIAL PRODUCER FORMERLY KNOWN AS SYNCHRONAL CORP AGREED TO PAY 35 MILLION TO SETTLE FEDERAL TRADE COMMISSION CHARGES THAT TWO OF ITS PROGRAMLENGTH COMMERCIALS WERE FALSE AND MISLEADING INFOMERCIALS FOR ANUSHKA CELLULITE TREATMENT AND OMEXIN BALDNESS TREATMENT MADE UNSUBSTANTIATED CLAIMS THE FTC CHARGED IN 1991 THE FTC ALSO ALLEGED THAT CUSTOMERS WHO ORDERED THE TREATMENTS WERE THEN AUTOMATICALLY SHIPPED ADDITIONAL PRODUCTS AND BILLED ON THEIR CREDIT CARDS WITHOUT THEIR CONSENT TWO FORMER OWNERS OF SYNCHRONAL CORP RICHARD E KAYLOR AND IRA SMOLEV AGREED TO SETTLE WITH THE FTC UNDER VARIOUS PROVISIONS AMONG THEM MR SMOLEV AGREED TO MAINTAIN A 500000 ESCROW ACCOUNT TO COVER FUTURE REFUNDS IF HE ADVERTISES HAIRCARE COSMETIC OR RELATED PRODUCTS IN THE FUTURE MR KAYLOR AND MR SMOLEV AND SYNCHRONAL AGREED THAT ANY FUTURE COMMERCIALS THEY PRODUCE THAT ARE LONGER THAN 15 MINUTES WILL INCLUDE A VISUAL DISCLOSURE IN THE FIRST 30 SECONDS THAT IT IS A PAID AD MESSRS KAYLOR AND SMOLEV COULDN'T BE REACHED TO COMMENT A THIRD FORMER SYNCHRONAL OWNER THOMAS L FENTON HAD BEEN CHARGED BUT DIDN'T AGREE TO SETTLE HIS CASE REMAINS IN LITIGATION THE FTC SAID MR FENTON SAID HE REFUSED TO SETTLE BECAUSE I DON'T BELIEVE I HAVE VIOLATED THE LAW HE ADDED AS A SHAREHOLDER OF SYNCHRONAL I CONTRIBUTED AT LEAST MY FULL SHARE TO THE FINANCIAL SETTLEMENT BUT I WILL CONTINUE TO DEFEND MYSELF PERSONALLY IF NECESSARY WE'VE SETTLED AND WE'RE MOVING ON SAID BRUCE EDMONDSON CHIEF FINANCIAL OFFICER OF REGAL COMMUNICATIONS THE FORT WASHINGTON PA COMPANY THAT ACQUIRED SYNCHRONAL IN 1991 SHORTLY AFTER THE ACQUISITION REGAL AND SAATCHI & SAATCHI ADVERTISING FORMED AN INFOMERCIAL VENTURE HUDSON STREET PARTNERS ACCOUNT SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES WAS NAMED AS THE AGENCY FOR FOAMEX LP'S GENERAL FELT INDUSTRIES UNIT WHICH PRODUCES CARPET CUSHION GFI PLANS A CONSUMER AND TRADE AD CAMPAIGN THE AGENCY SAID BILLINGS COULDN'T BE DETERMINED 9306040107 930604 FINANCING BUSINESS ECHO BAY MINES LTD ECHO BAY MINES LTD SAID IT PLANS TO MAKE A PUBLIC OFFERING OF SIX MILLION COMMON SHARES TO RAISE AN INDICATED 698 MILLION BASED ON THE CURRENT MARKET PRICE CURRENTLY THE EDMONTON ALBERTA GOLDMINING COMPANY HAS ABOUT 1052 MILLION SHARES OUTSTANDING YESTERDAY IN TRADING ON THE AMERICAN STOCK EXCHANGE ITS SHARES CLOSED AT 11625 UP 25 CENTS ON VOLUME OF MORE THAN 15 MILLION SHARES ECHO BAY SAID FOUR MILLION SHARES WILL BE OFFERED IN THE US AND COUNTRIES OTHER THAN CANADA BY GOLDMAN SACHS & CO AND FIRST BOSTON CORP TWO MILLION SHARES WILL BE OFFERED IN CANADA AND COUNTRIES OTHER THAN THE US BY BURNS FRY LTD AND WOOD GUNDY INC THE COMPANY ADDED THAT PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES 9306040106 930604 HARCOURT GENERAL INC POSTS QUARTERLY PROFIT AFTER YEARAGO LOSS NEWTON MASS HARCOURT GENERAL INC CITING HIGHER EARNINGS IN ITS INSURANCE AND SPECIALTY RETAILING BUSINESSES SAID IT SWUNG TO A PROFIT FOR THE FISCAL SECOND QUARTER FOLLOWING A YEAREARLIER LOSS FOR THE QUARTER ENDED APRIL 30 HARCOURT GENERAL HAD NET INCOME OF 58 MILLION OR SEVEN CENTS A SHARE A YEAR EARLIER IT HAD A LOSS OF 33 MILLION OR FOUR CENTS A SHARE REVENUE FOR THE LATEST QUARTER ROSE 11 TO 103 BILLION FROM 9307 MILLION HARCOURT GENERAL SAID OPERATING PROFIT FROM ITS SPECIALTY RETAILING SEGMENT ROSE 27 IN THE QUARTER ON STRONG SALES OPERATING PROFIT AT ITS INSURANCE BUSINESS INCREASED 89 TO 157 MILLION FROM 83 MILLION PARTLY BECAUSE OF 42 MILLION IN CAPITAL GAINS AND GREATER PROFITABILITY ON ANNUITY PRODUCTS HOWEVER THE PROFIT GAIN WAS OFFSET IN PART BY AN EARNINGS DECLINE IN THE THEATER DIVISION AND CONTINUED OPERATING LOSSES IN THE PUBLISHING BUSINESS THE COMPANY SAID ROBERT J TARR PRESIDENT AND CHIEF EXECUTIVE OFFICER ATTRIBUTED A DECREASED NUMBER OF MOVIEGOERS TO A LACK OF COMMERCIALLY APPEALING FILMS HE SAID HE REMAINS OPTIMISTIC ABOUT THIRDQUARTER RESULTS GIVEN THE MOVIES SCHEDULED FOR RELEASE THIS SUMMER MR TARR SAID THE PUBLISHING BUSINESS HAD AN OPERATING LOSS OF 20 MILLION BECAUSE OF LOW TEXTBOOK SALES AND HIGH MARKETING EXPENSES HE ADDED THAT BECAUSE OF THE SEASONAL NATURE OF EDUCATION PUBLISHING MOST OF THE BUSINESS' REVENUE AND OPERATING EARNINGS OCCUR IN THE THIRD QUARTER IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY HARCOURT SHARES ROSE 375 CENTS TO 34875 9306040105 930604 ALLIEDSIGNAL WINS US CONTRACT MORRISTOWN NJ ALLIEDSIGNAL INC SAID IT RECEIVED A CONTRACT WITH A POTENTIAL VALUE OF 180 MILLION TO DEVELOP AN ADVANCED SATELLITE RECEIVER FOR THE US SPECIAL OPERATIONS COMMAND AT MACDILL AIR FORCE BASE FLA THE MAKER OF AEROSPACE AND AUTOMOTIVE COMPONENTS ADVANCED MATERIALS AND CHEMICALS SAID THE POTENTIAL VALUE OF THE AGREEMENT INCLUDES A STARTUP PHASE AND FIVE ANNUAL PRODUCTION OPTIONS THE COMPANY IS DEVELOPING A MULTIMISSION ADVANCED TACTICAL TERMINAL A SATELLITE COMMUNICATIONS RECEIVER DESIGNED TO PROVIDE REALTIME COMMUNICATIONS BETWEEN DEPLOYED US SPECIAL FORCES AND THEIR COMMANDERS FROM MULTIPLE LOCATIONS 9306040104 930604 LEISURE & ARTS ON SPORTS CLOTHING TENNIS STYLES AT ROLAND GARROS BY FREDERICK C KLEIN PARIS HAVING BEEN IN PARIS FOR NOW FULLY 11 DAYS I FEEL QUALIFIED TO DELIVER A FASHION REPORT FOR WOMEN THE STORES ARE SHOWING PLATFORM SHOES AND COTTON PULLOVERS WITH CUTOUTS IN ODD PLACES MEN'S SUITS ON DISPLAY HAVE BROAD SHOULDERS AND LAPELS AND COME IN SHADES OF RED GREEN AND YELLOW THAT WOULD DO CREDIT TO TRAFFIC SIGNALS I HAVE SEEN ACTUAL WOMEN WEARING SOME OF THOSE NEW STYLES BUT NO ACTUAL MEN THE ONLY MAN I'VE EVER SEEN WHO LOOKS AT HOME IN A BRIGHTRED SUIT IS SANTA CLAUS AT ROLAND GARROS STADIUM THE TENNIS STYLES HAVE BEEN MORE TRADITIONAL BUT THEN YEAR IN AND YEAR OUT THERE BASICALLY ARE ONLY TWO ONE OF TODAY'S SCHEDULED MEN'S FRENCH OPEN SEMIFINALS WILL MATCH THE AMERICAN JIM COURIER WHO IS OF THE BASELINE PERSUASION WITH RICHARD KRAJICEK A LONGNECKED DUTCH SERVEANDVOLLEYER THE OTHER WILL PIT THE UKRAINIAN TEENAGER ANDREI MEDVEDEV WHO LIKES TO STAY BACK AGAINST THE SPANIARD SERGI BRUGUERA WHO LIKES TO STAY WAY BACK THAT THE SCORE BETWEEN THE TWO SECTS IS 13 IN FAVOR OF THE BASELINERS SHOULD BE NO SURPRISE BECAUSE THE CLAY OF ROLAND GARROS WHICH IS THE NAME EVERYBODY HEREABOUTS USES FOR THE TOURNAMENT BY THE WAY IS SUPPOSED TO FAVOR PLAYERS WILLING TO TRADE SHOTS WITH THEIR OPPONENTS UNTIL THE COWS COME HOME OR AT LEAST START TO FRET ABOUT THEIR DINNER RESERVATIONS NOT ONLY DOES THE GRITTY STUFF SLOW SHOTS THAT BOUNCE BUT ITS ACCUMULATION ON THE BALLS HAMPERS BIG SERVES AND THE CRUMBLY FOOTING AT THE NET MAKES VOLLEYING CHANCY IN FACT THOUGH HITTING THE BALL AGGRESSIVELY AS THE S&VERS ARE WONT TO DO IS RARELY A LIABILITY JUST BECAUSE I COME TO THE NET DOESN'T MEAN I CAN'T PLAY ON CLAY SAID THE 21YEAROLD KRAJICEK AFTER HIS WEDNESDAY QUARTERFINAL WIN OVER THE VETERAN KAREL NOVACEK OF THE CZECH REPUBLIC SO FAR IT'S BEEN OK HUH AND IF YOU REALLY WANT TO BE STRICT ABOUT CATEGORIZING THE ROLAND GARROS SEMIFINALISTS ON THEIR PLAYING STYLES THE BREAKDOWN WOULD BE ONE S&VER TWO TRADITIONAL CLAYCOURT SPECIALISTS BRUGUERA AND MEDVEDEV AND COURIER THE TWOTIME DEFENDING CHAMPION IN THESE PRECINCTS MOSTLY STAYS BACK ALL RIGHT BUT HIS SLASHING HITTHEBALLONTHERISE TACTICS ARE ANYTHING BUT PATIENT HIS RETURN OF SERVICE IS ESPECIALLY STRONG NO MATTER HOW HARD A SERVE COMES AT HIM IT'S LIKELY TO COME BACK HARDER IT'S NO WONDER THEN THAT COURIER'S FOES OFTEN COME OFF THE COURT ACTING AS IF THEY'VE JUST GONE A FEW ROUNDS WITH MIKE TYSON GORAN IVANISEVIC THE CROATIAN BLASTER SOUNDED LIKE POOR MICHAEL SPINKS AFTER COURIER BLASTED HIM 61 62 62 IN THE FINALS OF THE ITALIAN OPEN IN ROME LAST MONTH IT WAS ALL OVER SO FAST IVANISEVIC MARVELED THUS TODAY'S COURIERKRAJICEK DUEL SHAPES UP AS PUNCHER VS PUNCHER WITH THE EDGE FOR HIS BETTER RECORD ON THE SURFACE GOING TO THE FLORIDIAN KRAJICEK WHO RECOMMENDED HIMSELF TO ME BY CALLING SOCCER SOCCER INSTEAD OF FOOTBALL AS OTHER EUROPEANS DO AND SAYING HE DOESN'T LIKE THE SPORT ADMITTED AS MUCH AFTER HIS MATCH WITH NOVACEK REMINDED THAT HE'D BEATEN COURIER JUST ONCE IN FOUR PREVIOUS MEETINGS ON AN INDOOR CARPET IN ANTWERP HE WAS ASKED WHAT MADE THE DIFFERENCE THERE THE FAST COURT HE SAID WITHOUT BLINKING THE DARKEYED 22YEAROLD BRUGUERA HAS WON SEVEN PROFESSIONAL TOURNAMENTS ALL ON CLAY HIS HAPPINESS WITH THE SURFACE WAS DEMONSTRATED ANEW ON WEDNESDAY WHEN HE OUSTED THE TOURNEY'S NO 1 SEED THE AMERICAN PETE SAMPRAS IN A QUARTERFINAL WHOSE 63 46 61 64 SCORE DIDN'T REFLECT THE MATCH'S ONESIDEDNESS EXCEPT FOR A FIVEGAME WINNING STREAK IN THE SECOND SET S&VER SAMPRAS NEVER GOT CLOSE TO THE BARCELONA TOPSPINNER WHEN SAMPRAS CAME TO THE NET HE WAS PASSED SO OFTEN AND SKILLFULLY THAT THE CRIES OF OLE FROM BRUGUERA'S COUNTRYMEN IN THE CROWD SEEMED APT AND WHEN SAMPRAS STAYED BACK HE WAS SIMPLY OUTHIT THE LONGER A POINT WENT THE LESS CHANCE I HAD TO WIN IT HE CONFIRMED THE REAL POINT WAS THAT SAMPRAS'S TOP SEEDING MIRRORING HIS CURRENT NO 1 WORLD RANKING WAS UNJUSTIFIED BASED WHOLLY ON HIS PERFORMANCES ON SLICKER SURFACES THE MEN'S QUARTERFINALS HIGHLIGHT WAS MEDVEDEV'S VICTORY OVER STEPHAN EDBERG THE MATCH BEGAN WEDNESDAY AFTERNOON WAS DELAYED BY RAIN AND CONCLUDED YESTERDAY IT'S SAID OF THE ATHLETIC 18YEAROLD MEDVEDEV ALREADY A WINNER OF FIVE PROTOUR TOURNEYS THAT HE DOESN'T YET KNOW WHAT HE DOESN'T KNOW HE DIDN'T FIND OUT AGAINST THE THIRDSEEDED SWEDE A HIGH PRIEST OF S&V WHO HAS WON EACH OF THE OTHER THREE TENNIS GRAND SLAM EVENTS THE AUSTRALIAN AND US OPENS AND WIMBLEDON TWICE BUT HAS NEVER PREVAILED HERE EDBERG PREFERS RUNNING UP AND BACK TO SIDE TO SIDE AND MEDVEDEV MADE HIM DO A LOT OF THE LATTER IN THE FIRST SET WHICH HE WON 60 IN 16 MINUTES HE LATER CALLED THE SET HIS BEST EVER EDBERG HAD RALLIED TO 55 IN THE SECOND SET WHEN WEDNESDAY'S RAINS CAME AND WON THE SET IN A TIEBREAKER UNDER GRAY SKIES YESTERDAY BUT MEDVEDEV NOT ONLY PROCEEDED TO RETURN THE VETERAN'S VAUNTED SERVES WITH A COURIERLIKE ELAN BUT OUTSERVED HIM AS WELL EDBERG WAS FORCED TO HIT VERY GOOD SHOTS JUST TO STAY IN POINTS AND WAS PASSED OR LOBBED OVER JUST ABOUT EVERY TIME HE HIT WEAKLY HOW DO YOU SAY OLE IN UKRAINIAN ALTHOUGH MOST HERE THINK THAT COURIER WILL PUNCH OUT KRAJICEK AND WHOEVER SHOWS UP ACROSS THE NET IN SUNDAY'S FINAL IT'S MEDVEDEV WHO'S MADE THE BIGGEST SPLASH HERE SO FAR HE'S DONE IT ON COURT WITH HIS BRISK STYLE AND IN INTERVIEWS THAT PROVE HIM TO BE AN EXPANSIVE SORT ALONG WITH TENNIS THE KIEV NATIVE HAS HELD FORTH ON POLITICS HE CONSIDERS HIMSELF 100 RUSSIAN WHATEVER THE NEW MAP OF THE EXUSSR SAYS AND GIRLS NOTING THAT HE'S RARELY TOO BUSY TO NOTICE THE PRETTIER ONES WHO ATTEND HIS MATCHES BUT HE SAYS HIS BIGGEST FAN IS SACHA THE FOURYEAROLD SON OF HIS COACH ALEXANDER DOLGOPOLOV AND MAYBE HE'S THE MOST PERCEPTIVE TOO SACHA TOLD ME THIS MORNING THAT 'WE' WOULD BEAT EDBERG MEDVEDEV SMILED AFTER QUALIFYING FOR A SLAM FINAL FOR THE FIRST BUT UNDOUBTEDLY NOT LAST TIME IN HIS LIFE AND HE SAID THAT IN THE FINAL COURIER WOULD BE TOUGH BUT POSSIBLE LATE BULLETIN MARY JOE FERNANDEZ QUALIFIED FOR THE FINALS BY SMOKING ARANTXA SANCHEZ VICARIO 62 62 SHE WILL FACE STEFFI GRAF WHO DELETED ANKE HUBER 61 61 9306040103 930604 ITALTEL'S CHIEF IS UNDER ARREST IN BRIBERY CASE TELECOMMUNICATIONS SECTOR IN ITALY REMAINS FOCUS OF CORRUPTION INQUIRY BY LISA BANNON STAFF REPORTER OF THE WALL STREET JOURNAL MILAN INVESTIGATORS DELVED FURTHER INTO CORRUPTION IN ITALY'S TELECOMMUNICATIONS SECTOR WITH THE ARREST OF SALVATORE RANDI CHIEF EXECUTIVE OFFICER OF ITALTEL SPA ITALY'S STATE TELECOMMUNICATIONS EQUIPMENT MAKER AND THE ITALIAN PARTNER OF AMERICAN TELEPHONE & TELEGRAPH CO MR RANDI WAS SENT TO MILAN'S SAN VITTORE PRISON WEDNESDAY AFTER TURNING HIMSELF IN TO POLICE WHEN HE LEARNED A WARRANT HAD BEEN ISSUED FOR HIS ARREST OFFICIALS CLOSE TO THE INVESTIGATION SAID MR RANDI A LONGTIME EXECUTIVE IN THE ITALIAN TELECOMMUNICATIONS SECTOR WAS CHARGED WITH PAYING A BRIBE OF 38 BILLION LIRE 26 MILLION IN 1991 TO OBTAIN A CONTRACT TO SUPPLY EQUIPMENT TO ASST ITALY'S STATE LONGDISTANCE TELEPHONE SERVICES COMPANY THE TWOYEAR CONTRACT FOR THE SUPPLY OF NETWORK MANAGEMENT SYSTEMS WAS VALUED AT 300 BILLION LIRE OFFICIALS SAID OVER THE PAST THREE WEEKS MAGISTRATES HAVE UNCOVERED EVIDENCE OF SYSTEMATIC KICKBACKS PAID BY MULTINATIONAL ELECTRONICS AND TELECOMMUNICATIONS GIANTS TO ITALIAN STATE OFFICIALS TO OBTAIN PUBLIC CONTRACTS IN THE 1980S AMONG THE COMPANIES INVOLVED ARE ITALY'S ING C OLIVETTI & CO GERMANY'S SIEMENS AG THE UK'S GENERAL ELECTRIC CO AND SWEDEN'S TELEFON AB LM ERICSSON THE ARREST COMES AS A SURPRISE TO AT&T SAID KAREN CLARK A SPOKESWOMAN FOR AT&T NETWORK SYSTEMS INTERNATIONAL IN BRUSSELS WHICH OWNS 20 OF ITALTEL WE CONDUCT ALL OF OUR BUSINESS ALL AROUND THE WORLD IN AN ETHICAL MANNER AND WE CERTAINLY WOULDN'T ENDORSE BEHAVIOR THAT IS INCONSISTENT WITH THAT SHE SAID THE INVOLVEMENT OF ITALTEL IN ITALY'S CONTINUING CORRUPTION SCANDAL COULD JEOPARDIZE AT&T'S CURRENT NEGOTIATIONS WITH THE ITALIAN STATE COMPANY TO EXPAND THE TWO COMPANIES' PARTNERSHIP WE'LL WAIT FOR THE RESULTS OF THIS INVESTIGATION TO SEE HOW IT WILL AFFECT OUR FURTHER BUSINESS DEVELOPMENT IN ITALY SAID MS CLARK AT&T HAS BEEN PITTED AGAINST ITS MAIN INTERNATIONAL COMPETITORS INCLUDING SIEMENS AND FRANCE'S ALCATELALSTHOM SA IN A BID TO FORM A BROAD GLOBAL ALLIANCE WITH ITALTEL TO BOOST ITS FOREIGN SALES THROUGH ITALTEL'S 50 SHARE OF THE ITALIAN MARKET THE NEW PARTNER WOULD GAIN ACCESS TO ONE OF EUROPE'S FASTEST GROWING AND LARGEST MARKETS FOR TELECOMMUNICATIONS THIS COULD DAMAGE THE REPUTATION OF AT&T BUT WHAT CAN THEY DO SAID FAUSTO GALEOTTI SENIOR ANALYST WITH PASFIN BROKERAGE HOUSE IN MILAN IF THEY PULL OUT BECAUSE OF THIS THEN THE PRIZE WILL GO TO SIEMENS OR ALCATEL AND IT'S ULTIMATELY A LOSS FOR AT&T ACCORDING TO OFFICIALS MR RANDI ALLEGEDLY PAID THE BRIBE TO GIUSEPPE PARRELLA THE FORMER MANAGING DIRECTOR OF ASST WHO WAS ARRESTED IN MAY AND HAS BEEN A CENTRAL FIGURE IN THE MAGISTRATES' RECENT PROBE OF THE STATE TELECOMMUNICATIONS SECTOR ASST HAD BEEN CONTROLLED BY THE ITALIAN POST AND TELECOMMUNICATIONS MINISTRY UNTIL 1992 WHEN IT PASSED TO CONTROL OF STATE HOLDING COMPANY IRI 9306040102 930604 US PLANNING TO TAX HEALTH BENEFITS ABOVE FEDERAL PACKAGE UNIONS TOLD BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HILLARY RODHAM CLINTON TOLD LABOR UNION OFFICIALS THAT THE ADMINISTRATION PLANS TO PROPOSE TAXING EMPLOYERPROVIDED HEALTH BENEFITS THAT ARE MORE GENEROUS THAN A NEW FEDERALLY GUARANTEED BENEFITS PACKAGE BUT SHE SAID EMPLOYEES WOULDN'T HAVE TO PAY TAXES ON THE BASIC BENEFITS PACKAGE EVEN IF THE EMPLOYER PICKED UP ALL OF THEIR OUTOFPOCKET EXPENSES THE TAXING OF EMPLOYERPROVIDED HEALTH BENEFITS HAS BEEN ONE OF THE MOST POLITICALLY CONTENTIOUS ISSUES SURROUNDING PRESIDENT CLINTON'S EFFORTS TO OVERHAUL THE NATION'S HEALTH SYSTEM UNIONS HAVE FOUGHT IT VIGOROUSLY ARGUING THAT A TAX ON HEALTH BENEFITS AMOUNTS TO A TAX ON THE MIDDLE CLASS AND PENALIZATION OF PEOPLE WITH GOOD HEALTH CARE ECONOMISTS HOWEVER SAY TAXING HEALTH BENEFITS BEYOND A CERTAIN LEVEL IS CRITICAL TO BRINGING MORE PRICE SENSITIVITY INTO THE HEALTHCARE MARKET CURRENTLY ALL EMPLOYERPROVIDED HEALTH BENEFITS ARE EXCLUDED FROM AN EMPLOYEE'S INCOME AND THEREFORE AREN'T TAXED THE HEALTH PLAN MR CLINTON IS SCRAMBLING TO COMPLETE IS EXPECTED TO DEFINE A PACKAGE OF HEALTH BENEFITS THAT EVERY AMERICAN WILL BE GUARANTEED BY LAW IT IS ALSO EXPECTED TO SET THE OUTOFPOCKET PAYMENTS BENEFICIARIES WILL HAVE TO CONTRIBUTE INCLUDING PATIENT COPAYMENTS FOR DOCTORS' VISITS AND THE DEDUCTIBLE OR AMOUNT OF MONEY THAT A PATIENT HAS TO SPEND ON MEDICAL CARE EACH YEAR BEFORE THE INSURANCE POLICY KICKS IN MRS CLINTON TOLD A MEETING OF ABOUT 200 UNION MEMBERS YESTERDAY THAT A EMPLOYER COULD CHOOSE TO PAY ALL OR PART OF THE COPAYMENTS AND DEDUCTIBLES FOR THEIR WORKERS UNDER THE FEDERALLY GUARANTEED BENEFITS PACKAGE AND SUCH PAYMENTS WOULDN'T BE CONSIDERED TAXABLE INCOME TO THE EMPLOYEES THIS TREATMENT WOULD PRESERVE A BENEFIT THAT MANY UNIONS HAVE STRUGGLED TO MAINTAIN SHE SAID HOWEVER THAT IF AN EMPLOYER PROVIDED WORKERS WITH A SUPPLEMENTAL INSURANCE PACKAGE COVERING MEDICAL SERVICES BEYOND THOSE IN THE FEDERALLY GUARANTEED HEALTH PLAN THOSE BENEFITS WOULD BE SUBJECT TO TAXATION PARTICIPANTS AT THE MEETING SAID UNION LEADERS DIDN'T TAKE ISSUE WITH THE ADMINISTRATION'S APPROACH ACCORDING TO A PARTICIPANT MRS CLINTON SAID THE DECISION TO TAX BENEFITS BEYOND THE FEDERAL PLAN MEANS THAT THE PLAN WILL HAVE TO COVER A BROAD RANGE OF ITEMS ACCORDING TO ADMINISTRATION OFFICIALS PRESIDENT AND MRS CLINTON AND THEIR TOP HEALTH AND ECONOMIC ADVISERS HAVE TENTATIVELY AGREED ON A FEDERALLY GUARANTEED BENEFITS PACKAGE THAT WOULD RESEMBLE A STANDARD BLUE CROSSBLUE SHIELD PLAN NOW OFFERED TO FEDERAL EMPLOYEES THE PACKAGE WOULD COVER AN ARRAY OF MEDICAL SERVICES INCLUDING PRESCRIPTION DRUGS SOME MENTAL HEALTH SERVICES HOSPITALIZATION AND AN ARRAY OF PREVENTIVE SERVICES SUCH AS CHILDHOOD IMMUNIZATIONS THE 1993 STANDARD OPTION BLUE CROSSBLUE SHIELD PLAN FOR FEDERAL WORKERS OFFERS 100 HOSPITALIZATION AND 75 COVERAGE FOR MOST DOCTOR VISITS AND OUTPATIENT PROCEDURES IT ALSO HAS A 200 ANNUAL DEDUCTIBLE FOR EACH FAMILY A 250 ANNUAL DEDUCTIBLE FOR INPATIENT HOSPITAL COSTS AND A 3000 LIMIT ON ANNUAL OUTOFPOCKET COSTS ACCORDING TO PARTICIPANTS MRS CLINTON MENTIONED COSMETIC SURGERY AS A BENEFIT THAT WOULDN'T BE IN THE FEDERAL HEALTH PLAN AND THEREFORE WOULD BE SUBJECT TO TAXATION IF AN EMPLOYER PROVIDED IT SEPARATELY MRS CLINTON ALSO TOLD THE UNION MEMBERS THAT THE ADMINISTRATION WANTS TO MOUNT A PUBLICEDUCATION CAMPAIGN WITH CONSUMER ORGANIZATIONS UNIONS AND OTHER GROUPS THIS SUMMER TO HELP SELL THE ADMINISTRATION'S HEALTH PLAN AS MRS CLINTON WAS DISCUSSING THE CAMPAIGN THE DEMOCRATIC PARTY SAID IT IS DROPPING ITS PLAN TO SPIN OFF A NONPARTISAN ORGANIZATION TO PROMOTE THE CLINTON HEALTHCARE PROPOSAL INSTEAD THE DEMOCRATS INTEND TO RUN THE PROMOTIONAL CAMPAIGN AS A PARTY OPERATION THE DEMOCRATIC NATIONAL COMMITTEE RECENTLY PROVIDED A 100000 LOAN TO LAUNCH THE ORGANIZATION KNOWN AS THE NATIONAL HEALTH CARE CAMPAIGN AS A NONPROFIT TAXEXEMPT CORPORATION DEMOCRATS HOPED THE ORGANIZATION WOULD THEN BE ABLE TO GENERATE GRASSROOTS SUPPORT AND DONATIONS FROM UNIONS CONSUMER GROUPS SMALL BUSINESSES AND HEALTH CONCERNS AMONG OTHERS TO LAUNCH A SALES CAMPAIGN FOR THE CLINTON PLAN BUT DEMOCRATIC OFFICIALS SAID THEY CONCLUDED IN RECENT DAYS THAT BECAUSE OF THE ORGANIZATION'S DEMOCRATIC ROOTS SOME WOULD INEVITABLY DISPUTE THE NOTION THAT IT WAS NONPARTISAN THERE WERE SOME PEOPLE WHO DIDN'T PORTRAY IT THAT WAY AND SEE IT THAT WAY SO WE JUST MOVED IT BACK HERE SAID DNC SPOKESWOMAN KIKI MOORE THE CAMPAIGN WILL MAINTAIN OFFICES IT HAD ESTABLISHED IN WASHINGTON BUT WILL BE FUNDED WITH DNC MONEY MS MOORE SAID CELIA FISCHER A CLINTON CAMPAIGN VETERAN WILL CONTINUE TO RUN THE ORGANIZATION GERALD F SEIB CONTRIBUTED TO THIS ARTICLE 9306040101 930604 MARKETING PIZZA IN JAPAN IS ADAPTED TO LOCAL TASTES BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO WHEN DOMINO'S PIZZA INC OPENED JAPAN'S FIRST PIZZADELIVERY OUTLET SEVEN YEARS AGO IT HAD TO EDUCATE CONSUMERS ABOUT TRUE AMERICAN PIZZA WE HAD TO EXPLAIN THAT THE MOST POPULAR TOPPING IN AMERICA WAS PEPPERONI WHICH IS A KIND OF SAUSAGE AND DIFFERENT FROM BELL PEPPER SAYS ERNEST HIGA PRESIDENT OF Y HIGA CORP WHICH OPERATES THE DOMINO'S CHAIN HERE UNDER A LICENSE NOW 16YEAROLD YUKO MASAKI A TOKYO PIZZA FAN SAYS SHE KNOWS VERY WELL WHAT PEPPERONI AND JALAPENO ARE BUT THE HIGH SCHOOL STUDENT SAYS HER FAVORITE PIZZA IS CURRY TOPPED WITH BITS OF SQUID SO SHE CALLS AND ORDERS FROM PIZZA STATION A CHAIN MANAGED BY TOKYOBASED UNIVERSAL GOURMET SYSTEM CORP WHAT DON'T THEY HAVE CURRY PIZZA IN AMERICA ASKS MS MASAKI NOTING THAT THE NEARBY DOMINO'S DOESN'T OFFER THE EXOTIC ITEM HOW ABOUT SQUID IT'S SO GOOD I WOULD URGE FOREIGNERS TO TRY IT THESE DAYS THE STREETS OF TOKYO ARE ABUZZ WITH THE SOUND OF PIZZADELIVERY SCOOTERS AND THE CHAINS FACED WITH GROWING DEMAND AND COMPETITION ARE BECOMING CREATIVE AS MANY AS 1000 LOCAL PIZZA STORES OFFER SUCH ODDLY JAPANIZED MENUS AS APPLE OR RICE ON PIZZA OR GERMAN SAUSAGE AND POTATO PIZZA WITH MAYONNAISE SAUCE THERE ARE NO CONSOLIDATED SALES FIGURES FOR THE PIZZA STORES BUT INDUSTRY OBSERVERS ESTIMATE THAT PIZZA SALES IN JAPAN BY DELIVERY CHAINS RESTAURANTS AND SUPERMARKETS WILL DOUBLE IN THE NEXT FEW YEARS TO ABOUT 300 BILLION YEN 280 BILLION NOT TO BE LEFT BEHIND DOMINO'S IS PROMOTING JAPANESE PIZZAS OF ITS OWN ALTHOUGH IT ADVERTISES THAT IT'S FROM THE USA THE CHAIN WHICH HAS 100 STORES IN JAPAN NOW OFFERS A 10INCH CHICKEN TERIYAKI GOURMET PIZZA FOR 15 INCLUDING JAPANESESTYLE GRILLED CHICKEN SPINACH ONION AND CORN THE MOST COMMON PIZZA TOPPING HERE DOMINO'S ALSO OFFERS SQUID AND TUNA TOPPING AS WELL AS CORN SALAD THE JAPANESE NEED A LOT OF STIMULATION SAYS MR HIGA THE COMPANY RECENTLY OFFERED A POPULAR FERMENTED MILK DRINK TO GO WITH ITS PIZZA AS WELL AS SUCH ORIENTAL TOPPINGS AS BARBECUED BEEF AND SAUTEED BURDOCK ROOT DOMINO'S CREATIVE ATTEMPTS ARE RECENT MARKETING MOVES BY THE PIZZA HUT UNIT OF PEPSICO INC PIZZA HUT PITCHES ITSELF AS THE BIGGEST PIZZA CHAIN IN THE WORLD BUT IT HAS A SMALLER PRESENCE IN JAPAN THAN DOMINO'S IN PART BECAUSE OF EARLIER MANAGEMENT PROBLEMS AND DISAGREEMENTS WITH JAPANESE PARTNERS BUT LAST YEAR PIZZA HUT JOINED FORCES WITH ANOTHER PEPSICO UNIT KENTUCKY FRIED CHICKEN JAPAN LTD AND VOWS TO OPEN 150 DELIVERY OUTLETS IN THE NEXT FIVE YEARS UP FROM ITS PRESENT 43 THE ONLY COMPANY WE SEE AS COMPETITION IS DOMINO'S SAYS ICHIRO TAKATSUKI A MANAGER FOR KFC IN JAPAN THE COMPANY RECENTLY INTRODUCED BARBECUE CHICKEN PIZZA JUST AS DOMINO'S HAS AS WELL AS BURDOCK ROOT POTATO AND MACARONI SALAD NOW THE ORIENTAL PIZZAS ARE SPREADING OVERSEAS LAST YEAR Y HIGA ACQUIRED DOMINO'S HAWAIIAN OPERATION IT HOPES TO WOW HAWAIIAN PIZZA FANS WITH A CHICKEN TERIYAKI PIE JAPANESE CHAINS ALSO PLAN STORES IN HONG KONG AND CHINA DOMINO'S ATTEMPTS TO GO JAPANESE ARE A BIG SWITCH FROM ITS ALLAMERICAN EARLY DAYS HERE WHEN IT STRUGGLED TO CONVINCE CONSUMERS THAT A 20 PIZZA DELIVERED IN A CARDBOARD BOX WAS TRES AMERICAN AND THUS FASHIONABLE BACK THEN ONLY NOODLE SHOPS AND SUSHI RESTAURANTS DELIVERED BUT TRENDCONSCIOUS YOUNG JAPANESE QUICKLY GOT HOOKED ON THE WESTERN DISH AND THE SUCCESS OF DOMINO'S SOON ATTRACTED JAPANESE IMITATORS THE LOCAL OUTLETS PROMPTLY INTRODUCED MORE EXOTIC RECIPES AND CHEAPER PRICES STRAWBERRY CONES CO BASED IN THE NORTHERN CITY OF SENDAI SAYS OLDER CONSUMERS IN THE COUNTRYSIDE LIKE THE TASTE OF SHRIMP IN CHILI SAUCE ON A SWEETENED PIZZA CRUST SHAKEY'S JAPAN LTD A JAPANESE CHAIN THAT OWNS THE RIGHTS TO USE THE LOGO OF THE SHAKEY'S UNIT OF SINGAPOREBASED INNOPACIFIC HOLDINGS LTD SAYS IT DELIVERS THE ULTIMATE JAPANESESTYLE PIE A CHICKEN SEAWEED AND SHREDDED BONITO TOPPING WITH SAUCE MADE FROM FISH STOCK PIZZA CALIFORNIA CO CLAIMS THAT ITS 300 FRANCHISE OUTLETS MAKE IT THE BIGGEST PIZZA CHAIN IN JAPAN THE COMPANY EXPECTS TO POST SALES OF 24 BILLION YEN 2237 MILLION THIS YEAR A COMPANY SPOKESMAN SAYS DOMINO'S INSISTS THAT ITS MARKET SHARE IS THE LARGEST BUT DECLINES TO PROVIDE DATA FOR CONSUMERS TRYING TO FIND THEIR WAY THROUGH THE PIZZA UNIVERSE IN JAPAN THOUGH THE CHAIN'S SIZE IS IRRELEVANT MASAYOSHI YAMAZAKI A 16YEAROLD STUDENT SAYS HE'S JUST LOOKING FOR AUTHENTICITY I WANT THE REAL THING THE PIZZA THAT'S REALLY FROM AMERICA HE SAYS EMIKO KITAMURA A 22YEAROLD NURSE WHO ORDERS OUT WHEN SHE HAS FRIENDS OVER USES OTHER CRITERIA WHICH CHAIN OFFERS THE BEST PRICES WHICH HAS MORE ORIGINAL TOPPINGS AND WHICH IS FAR AWAY DISTANCE IS IMPORTANT ON A BUSY DAY WHEN ROADS ARE CLOGGED CHANCES ARE THAT THE DELIVERY SCOOTER WON'T MAKE THE 30MINUTE DELIVERY THAT MOST CHAINS GUARANTEE THEN SHE SAYS SMILING I GET A DISCOUNT 9306040100 930604 LAW LEGAL BEAT MILKEN TO WORK IN DRUG PROGRAM TO FULFILL COMMUNITY OBLIGATION BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL MICHAEL MILKEN WILL WORK IN A DRUGPREVENTION PROGRAM FOR LOS ANGELES INNERCITY SCHOOLS TO FULFILL THE COMMUNITYSERVICE OBLIGATION OF HIS PRISON SENTENCE THE ASSIGNMENT TO WORK WITH DARE AMERICA WHICH STANDS FOR DRUG ABUSE RESISTANCE EDUCATION WAS APPROVED BY THE US PROBATION OFFICE AND US JUDGE KIMBA WOOD JUDGE WOOD SENTENCED MR MILKEN IN 1990 MR MILKEN WHO PLEADED GUILTY TO SIX SECURITIESRELATED FELONIES IS OBLIGATED TO DO 1800 HOURS OF COMMUNITY WORK ANNUALLY FOR THREE YEARS UNDER THE SENTENCE MR MILKEN FORMERLY HEAD OF THE JUNKBOND DEPARTMENT AT THE DEFUNCT DREXEL BURNHAM LAMBERT INC RECENTLY RETURNED TO HIS HOME IN ENCINO CALIF AFTER SERVING TWO YEARS IN PRISON JUDGE WOOD SENTENCED MR MILKEN TO 10 YEARS IN PRISON WITH THE EXPECTATION THAT HE WOULD BE RELEASED IN ABOUT THREE YEARS SHE LATER REDUCED MR MILKEN'S PRISON TERM BECAUSE OF HIS COOPERATION WITH THE GOVERNMENT THE COMMUNITYSERVICE ASSIGNMENT WILL MAINLY REQUIRE MR MILKEN TO WORK IN THE ORGANIZATION'S CULVER CITY CALIF HEADQUARTERS ALTHOUGH HE ALSO WILL DO SOME TEACHING HE DID VOLUNTEER WORK IN PUBLIC SCHOOLS BEFORE GOING TO PRISON AND TUTORED PRISONERS WHILE SERVING HIS SENTENCE MR MILKEN WHO CITED HIS TEACHING ACTIVITIES AS A REASON FOR JUDGE WOOD TO REDUCE HIS SENTENCE HAS SAID THAT HIS NEXT BUSINESS VENTURES WILL BE IN THE AREA OF EDUCATION IN AN INTERVIEW MR MILKEN SAID WORKING FOR DARE WILL BE A LEARNING EXPERIENCE FOR HIM AS WELL LOS ANGELES IS THE MOST DIVERSE CULTURAL CITY MAYBE IN THE WORLD TODAY THERE'S A LOT TO LEARN FROM THE INTERACTION OF KIDS GROWING UP MR MILKEN SAID HE SAID HE WANTED TO UNDERSTAND WHY YOU HAVE A LARGE PART OF SOCIETY THAT WANTS TO BURN A BUILDING DOWN RATHER THAN PUT ONE UP MR MILKEN WHO IS SAID TO CONTROL A FAMILY FORTUNE OF CLOSE TO 500 MILLION EVEN AFTER PAYING MORE THAN 1 BILLION IN FINES PENALTIES AND CIVIL SETTLEMENTS HAS BEEN A HOT COMMODITY AMONG COMMUNITYSERVICE GROUPS MORE THAN TWO DOZEN ORGANIZATIONS WROTE TO JUDGE WOOD ASKING THAT SHE ASSIGN MR MILKEN TO THEIR PARTICULAR PROGRAMS MR MILKEN'S LAWYERS ALSO RECEIVED A SUBSTANTIAL NUMBER OF REQUESTS THE DARE PROGRAM THAT WON OUT WAS ONE OF FOUR PROPOSED BY MR MILKEN'S LAWYERS BUT APPROVAL WAS DELAYED AS THE TWO SIDES NEGOTIATED MR MILKEN'S SPECIFIC TASKS JUDGE WOOD AND PROBATION OFFICERS WERE SAID TO BE CONCERNED THAT ANY PROGRAM THEY APPROVED WOULDN'T SIMPLY RELY ON MR MILKEN'S BUSINESS SKILLS THEY WANTED TO ENSURE THAT HE ALSO WOULD BE REQUIRED TO WORK DIRECTLY WITH PEOPLE SERVED BY THE COMMUNITY PROGRAMS AT DARE MR MILKEN WILL BE TEACHING STUDENTS AT AN UNIDENTIFIED MIDDLE SCHOOL AS WELL AS DEVELOPING PROGRAMS MR MILKEN WILL WORK UNDER GLENN A LEVANT A FORMER LOS ANGELES POLICE DEPARTMENT OFFICER WHO IS EXECUTIVE DIRECTOR OF WORLDWIDE DARE AMERICA AND IS KNOWN AS THE CITY'S DRUG CZAR DARE IS A WIDELY RESPECTED PROGRAM THAT GOT ITS START SENDING POLICE OFFICERS INTO SCHOOLS TO WARN KIDS TO STAY AWAY FROM DRUGS MR MILKEN KNEW MR LEVANT BEFORE HE WENT TO PRISON AND A FOUNDATION SET UP BY MR MILKEN HAS BEEN A SUBSTANTIAL CONTRIBUTOR TO THE ORGANIZATION DARE SAID MR MILKEN WON'T BE INVOLVED IN FUND RAISING FOR THE ORGANIZATION MR MILKEN WILL HELP DEVELOP AN AFTERSCHOOL EDUCATION AND RECREATION PROGRAM WHICH WILL BE THE FIRST OF ITS KIND IN LOS ANGELES THE PROGRAM TO BE CALLED DAREPLUS FOR PLAY AND LEARN UNDER SUPERVISION WILL START AS A PILOT PROJECT AT AN UNIDENTIFIED MIDDLE SCHOOL LOCATED IN WHAT A PROBATION DEPARTMENT NEWS RELEASE DESCRIBES AS A HIGH CRIME AREA MR MILKEN WILL MEET WITH BUSINESS PEOPLE TEACHERS PARENTS AND OTHER COMMUNITY MEMBERS TO ENCOURAGE PARTICIPATION HE ALSO WILL TEACH STUDENTS AND HELP DEVELOP SIMILAR PROGRAMS MR LEVANT SAID HE WAS EXCITED TO GET MR MILKEN TO WORK FOR DARE THERE WAS A TREMENDOUS AMOUNT OF COMPETITION AS YOU CAN IMAGINE MR LEVANT SAID ADDING THAT WHAT IMPRESSED HIM MOST IS MR MILKEN'S TREMENDOUS ENERGY HE'S GOT A TREMENDOUS CAPACITY TO WORK MR LEVANT ALSO SAID THAT MR MILKEN'S PREVIOUS CONNECTIONS WITH DARE HAD NOTHING TO DO WITH HIS ASSIGNMENT TO WORK FOR THE ORGANIZATION DID HE BUY HIMSELF A COMMUNITYSERVICE PROGRAM THE ANSWER IS NO MR LEVANT SAID TO MEET HIS COMMUNITYSERVICE RESPONSIBILITIES MR MILKEN WILL HAVE TO WORK AT LEAST 40 HOURS A WEEK FOR 45 WEEKS EACH YEAR BUT A SPOKESWOMAN FOR MR MILKEN WHO IS KNOWN FOR STARTING WORKDAYS BEFORE SUNRISE SAID HE WILL CONTINUE TO WORK ON OTHER PROJECTS AMONG THOSE PROJECTS IS A VENTURE WITH ENTERTAINER MICHAEL JACKSON TO START THE EDUCATION ENTERTAINMENT NETWORK ON CABLE TELEVISION MR MILKEN WHO WAS RECENTLY DIAGNOSED WITH PROSTATE CANCER SAID HE ALSO PLANS TO FOCUS ON AN ASSOCIATION HE HAS FORMED TO SEARCH FOR A CURE FOR THAT ILLNESS MR MILKEN ALSO CONTINUES TO ATTEMPT TO REHABILITATE HIS NAME YESTERDAY HE DECLINED TO DISCUSS HIS PROSECUTION AND PRISON TIME BUT IN AN INTERVIEW TO BE AIRED TONIGHT ON ABC NEWS'S 20/20 PROGRAM HE SAID HISTORY WILL JUDGE HIM BETTER THAN PROSECUTORS HAVE MOST OF THE THINGS I STOOD UP FOR AND BELIEVED IN HAVE COME TO BE TRUE IN THE LAST FEW YEARS I BELIEVE THIS PERIOD OF TIME I WENT THROUGH WILL BE LOOKED AT MUCH THE SAME WAY AS THE MCCARTHY PERIOD IS LOOKED AT TODAY MR MILKEN TOLD BARBARA WALTERS ACCORDING TO A TRANSCRIPT OF THE INTERVIEW MR MILKEN IS ALSO UNREPENTANT IN THE INTERVIEW SAYING THAT HIS CRIMES WERE TECHNICAL AND THAT HE HAS NEVER MADE A PENNY DISHONESTLY THE FEDERAL DEPOSIT INSURANCE CORP CAN FREELY IGNORE HISTORICALPRESERVATION LAWS A FEDERAL APPEALS COURT SAID THE RULING BY THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA CIRCUIT PAVES THE WAY FOR THE SALE OF A DALLAS LANDMARK THE OLD DR PEPPER HEADQUARTERS TO A COMPANY THAT HAD THREATENED TO TEAR IT DOWN THE OPINION OVERTURNS A GROUNDBREAKING RULING BY A LOWER COURT THAT ORDERED THE FDIC TO SAFEGUARD HISTORICAL SITES IN ITS POSSESSION A THREEJUDGE PANEL OF THE APPEALS COURT DISMISSED THE CASE SAYING FEDERAL BANKING LAW GIVES THE FDIC BROAD POWERS TO SELL OFF BUILDINGS WITHOUT COURT INTERVENTION A SPOKESMAN FOR THE FDIC SAID THE AGENCY POSSESSES EITHER DIRECTLY OR AS COLLATERAL ON LOANS 17 HISTORICAL SITES IN A DISSENT JUDGE PATRICIA WALD QUESTIONED WHETHER THE FDIC'S POWERS ARE SO SWEEPING BY THIS DECISION THE MAJORITY DOES EFFECTIVELY INSULATE THE FDIC FROM JUDICIAL INTERVENTION EVEN IN THE FACE OF ALLEGATIONS OF EGREGIOUS VIOLATIONS OF FEDERAL LAW THREATENING GRAVE AND IRREPARABLE HARM SHE WROTE THE NATIONAL TRUST FOR HISTORIC PRESERVATION A FEDERAL AGENCY THAT SUED THE FDIC TO SAVE THE DR PEPPER BUILDING IS ASKING THE COURT TO RECONSIDER ITS RULING DALMAC INVESTMENTS CORP THE RICHARDSON TEXAS DEVELOPER THAT EARLIER THREATENED TO TEAR DOWN THE BUILDING SAID IT IS NEGOTIATING WITH HISTORICAL SOCIETIES TO FIND AN APPROPRIATE USE FOR THE STRUCTURE THAT DALLASBASED DR PEPPER/SEVENUP COS SOLD IN 1983 JUNDA WOO CONTRIBUTED TO THIS ARTICLE 9306040099 930604 WHO'S NEWS KODAK LOSES PHOTO CD AIDES TO ZUCKERMAN BY JOAN E RIGDON STAFF REPORTER OF THE WALL STREET JOURNAL THREE TOP EXECUTIVES AND 10 SOFTWARE DEVELOPERS RESIGNED FROM EASTMAN KODAK CO'S PHOTO CD BUSINESS TO FORM A DIGITAL IMAGING UNIT FOR MEDIA MOGUL MORTIMER ZUCKERMAN'S APPLIED GRAPHICS TECHNOLOGIES COMPANY AGT BASED IN NEW YORK SAID IT WILL USE THE KODAK TALENT TO DEVELOP PHOTO CD APPLICATIONS FOR ITS MEDIA AND ADVERTISING CUSTOMERS PHOTO CD IS A WAY OF STORING PHOTOGRAPHS ON COMPACT DISKS SO THEY CAN BE VIEWED ON TELEVISION SETS OR EDITED ON COMPUTERS THE SYSTEM MAKES PUBLISHING AND CATALOGING PHOTOS FASTER AND CHEAPER THE MASS RESIGNATION WAS LED BY SCOTT BROWNSTEIN PHOTO CD'S CHIEF ARCHITECT WHOSE RELATIONSHIPS IN THE COMPUTER INDUSTRY HAVE ENABLED KODAK TO FORM KEY PHOTO CD MARKETING ALLIANCES WITH OTHER COMPANIES INCLUDING APPLE COMPUTER INC MR BROWNSTEIN TOOK WITH HIM GEORGIA MCCABE WHO LAUNCHED KODAK'S BUSINESS OF DEVELOPING AND SELLING PHOTO CD SOFTWARE AND SURINDER DAHIYA WHO INVENTED THE PHOTOFINISHING MACHINES THAT TRANSFER PHOTOS ONTO COMPACT DISKS THE DEPARTURES COME AS KODAK BASED IN ROCHESTER NY IS PUSHING ITS STAFF TO DEVELOP NEW CUSTOMERS AND APPLICATIONS FOR THE FLEDGLING TECHNOLOGY WHICH HAS BEEN SLOW TO CATCH ON DESPITE ITS TECHNOLOGICAL PROMISE A KODAK SPOKESMAN SAID THAT ALTHOUGH THE DEPARTED EXECUTIVES WILL BE MISSED THE COMPANY STILL HAS ABOUT 300 MEMBERS ON ITS PHOTO CD RESEARCH AND DEVELOPMENT TEAM ALSO KODAK STANDS TO BENEFIT FROM ANY EFFORTS INCLUDING AGT'S TO SELL THE PHOTO CD SYSTEM THE KEYPERSONNEL DRAIN COULD SET KODAK BACK HOWEVER EARLIER THIS YEAR KODAK LOST THE HEAD OF ITS PHOTO CD BUSINESS STEPHEN STEPNESS WHEN HE RETIRED TO START HIS OWN COMPANY MR BROWNSTEIN A 22YEAR KODAK VETERAN WAS IN LINE FOR THAT JOB BUT WAS PASSED OVER IN FAVOR OF A KODAK EXECUTIVE FROM ANOTHER IMAGING DIVISION FREDERICK F GEYER MR GEYER HAS BEEN ON THE JOB FOR ONLY FOUR MONTHS AND IS NOW WITHOUT THE KEY EXECUTIVES WHO WERE GETTING HIM UP TO SPEED ON THE BUSINESS A KODAK SPOKESMAN SAID MR GEYER WILL NOW LEARN FROM THE REMAINING STAFF MR BROWNSTEIN WAS WIDELY VIEWED AS FRUSTRATED WITH THE BUREAUCRACY AT KODAK WHICH HAS BEEN WRESTLING WITH HOW MUCH OF ITS FUTURE LIES IN ELECTRONIC IMAGING TECHNOLOGIES SUCH AS PHOTO CD HE HAND PICKED THE TEAM OF EXECUTIVES WHO ARE JOINING HIM AT AGT 9306040097 930604 REVIEW & OUTLOOK EDITORIAL THE CLASSWARFARE ECONOMY PAYBACK TIME WAIT UNTIL THE WORD GETS AROUND THAT THE CLINTON TAX BILL IF ENACTED IS GOING TO BE RETROACTIVE TO JANUARY 1993 AMID THE GENERAL MAYHEM IN WASHINGTON THESE DAYS IT HASN'T BEEN EASY TO GET A FOCUS ON THE DETAILS BUT AS CURRENTLY WRITTEN THE TAX BILL WHICH MAY NOT BE COMPLETED UNTIL LATE THIS YEAR PROVIDES THAT THE HIGHER PERSONAL TAX BRACKETS WOULD EXTEND BACKWARD TO COVER INCOME EARNED OVER THE ENTIRE YEAR THAT MEANS MANY PEOPLE WILL HAVE TO SCRAMBLE NEXT YEAR TO PAY A BIG TAX BILL THEY WON'T HAVE COVERED WITH WITHHOLDING THE RETROACTIVE ASPECT OF THE CLINTON TAX BILL HASN'T FIGURED MUCH IN THE POLITICKING AROUND IT MOST OF THE FIRE HAS BEEN AIMED AT THE BTU TAX BUT AS WE NOTED ON TUESDAY THE PUNITIVE INCREASES IN PERSONAL TAX RATES MEAN THAT THE 80 OF ALL BUSINESSES THAT REPORT THEIR EARNINGS ON INDIVIDUAL TAX FORMS WILL BE SOCKED BY THE HIGHER RATES TOO MAKING SMALL FIRMS AND STRONG INDIVIDUAL EARNERS PAY HIGHER TAX RATES ON MONEY THEY'VE ALREADY EARNED THIS YEAR WILL ONLY DEPRESS THE ECONOMY FURTHER BUT SOMEHOW IT'S ALL SUPPOSED TO BE JUSTIFIABLE IN THE NAME OF FAIRNESS IT IS IN FACT HIGHLY UNUSUAL FOR INCREASES IN PERSONAL TAX RATES TO BE MADE RETROACTIVE IT WAS LAST DONE DURING THE VIETNAM WAR WHEN THE JOHNSON ADMINISTRATION IMPOSED A SPECIAL SURTAX THE LATE WALTER HELLER TOLD US THAT THE HIGHER RATES WERE PURPOSELY MADE RETROACTIVE TO SLOW DOWN A BOOMING ECONOMY THAT WAS SHOWING SIGNS OF WARRELATED INFLATION ANYONE WHO THINKS TODAY'S SLUGGISH ECONOMY NEEDS THE SAME MEDICINE IS PROBABLY A GRADUATE OF THE KEVORKIAN SCHOOL OF ECONOMICS THE REASON THE CLINTON ADMINISTRATION INSISTS ON RETROACTIVE TAX RATES IS SIMPLE IT NEEDS THE MONEY TO FINANCE THE CLASSWARFARE ECONOMY FORCING TAXPAYERS TO EARN NOW AND PAY MORE THAN EXPECTED LATER WILL BRING IN SOME 23 BILLION THAT WILL HELP PAY FOR SOME OF THE 153 BILLION IN NEW SPENDING THE CLINTON PLAN ENVISIONS REP BOB MATSUI A CALIFORNIA DEMOCRAT WHO SITS ON HOUSE WAYS AND MEANS ADMITS IT WOULD BE PREFERABLE TO MAKE ANY TAX CHANGE PROSPECTIVE BUT HE SAYS HIS COMMITTEE HAD NO CHOICE IF IT WAS GOING TO RAISE 246 BILLION IN NEW REVENUE HE SAYS TAXPAYERS EVENTUALLY WILL BE INFORMED THEY OWE MORE MONEY FOR 1993 THAN THEY ARE PAYING NOW AND HE HOPES THE DISRUPTION WILL BE MINIMAL THE WHITE HOUSE IS POOHPOOHING THE NOTION THAT RETROACTIVE TAX RATES WILL BE DISRUPTIVE IT NOTES THAT LAST YEAR THE BUSH ADMINISTRATION ADJUSTED WITHHOLDING TABLES WITH LITTLE TROUBLE BUT THAT CHANGE SIMPLY LEFT PEOPLE WITH MORE MONEY IN THEIR PAYCHECKS AND LESS OF A REFUND COME APRIL 15 NO ONE PAID MORE TAXES THE IRS WAS SIMPLY DENIED AN INTERESTFREE LOAN ON OVERPAYMENTS THE CLINTON TAX CHANGES ARE EXPLICITLY DESIGNED TO TAX PEOPLE MORE IN THE FUTURE ON MONEY THEY HAVE ALREADY EARNED BUT THE CLINTON TREASURY HAS ALSO AGREED NOT TO IMPOSE PENALTIES OR INTEREST CHARGES ON THOSE WHO UNDERWITHOLD THEIR TAXES A SURE SIGN IT EXPECTS MANY TAXPAYERS TO BE CAUGHT UNPREPARED NEXT YEAR REP FRED GRANDY AN IOWA REPUBLICAN SAYS MAKING HIGHER RATES RETROACTIVE WILL BE A NIGHTMARE FOR SMALL BUSINESSES BUT HE WASN'T GIVEN THE TIME OF DAY WHEN HE BROUGHT UP THE ISSUE IN WAYS AND MEANS WHEN HE ASKED THE RULES COMMITTEE TO ALLOW AN AMENDMENT TO KILL RETROACTIVITY ON THE HOUSE FLOOR THE COMMITTEE ON A PARTYLINE VOTE ADOPTED A CLOSED RULE THAT BLOCKED AMENDMENTS FROM BEING DEBATED ON THE HOUSE FLOOR CHAIRMAN JOSEPH MOAKLEY JUSTIFIED THIS GAG ORDER BY SAYING THAT WHEN YOU HAVE THE PRESIDENT'S BILL YOU DO EVERYTHING TO EXPEDITE THE PROCEDURE APPARENTLY THAT INCLUDES NOT ALLOWING CONSIDERATION OF HOW THE BILL MIGHT WORK IN REAL LIFE NO MATTER FOR THE CLINTON FOLKS GETTING ELECTED MEANS PAYBACK TIME BUT THEIR EMOTIONAL ANTIPATHY FOR THE 1980S SEEMS TO HAVE BLINDED THEM TO PRESENT FACTS THE PRESIDENT KEEPS SAYING HE'S CORRALLING THE PEOPLE WHO BENEFITED MOST FROM THE '80S BUT INCOME EARNED THEN ISN'T GOING TO BE CAPTURED THIS YEAR HE'S WHACKING PEOPLE WHO WERE JUST WORKING THEIR WAY UP THE LADDER IN THOSE YEARS WHAT'S THEIR CRIME PERHAPS EVENTUALLY SOMEONE IN THE WHITE HOUSE WILL EXPLAIN THIS 9306040096 930604 BUSINESS BRIEF SEPRACOR INC MARION MERRELL DOW BUYS 6 OF FIRM SETS LICENSE PACT SEPRACOR INC SAID MARION MERRELL DOW INC PURCHASED A 6 STAKE IN SEPRACOR FOR 10 MILLION AND AGREED TO PAY IT ANOTHER 75 MILLION IN A LICENSING AGREEMENT UNDER THE AGREEMENT SEPRACOR SAID IT WILL LICENSE TO MARION MERRELL EXCLUSIVE RIGHTS TO ITS PATENT APPLICATION COVERING THE USE OF TERFENADINE CARBOXYLATE A NEW FORM OF ANTIHISTAMINE THAT IS SIMILAR TO MARION MERRELL'S ANTIHISTAMINE SELDANE SEPRACOR BASED IN MARLBOROUGH MASS SAID ITS ANTIHISTAMINE DOESN'T HAVE THE SIDE EFFECT OF POTENTIAL CARDIAC ARRHYTHMIA OR FLUTTERING OF THE HEART THAT OCCURS IN SOME PATIENTS WHO TAKE SELDANE SEPRACOR SAID IT EXPECTS THE PATENT FOR THE COMPOUND TO BE APPROVED WITHIN TWO YEARS UNDER THE AGREEMENT SEPRACOR WILL RECEIVE ROYALTIES ON THE SALE OF THE PRODUCT AS WELL AS 75 MILLION IN LICENSE FEES OVER FOUR YEARS MARION MERRELL IS A KANSAS CITY MO PHARMACEUTICAL CONCERN 9306040095 930604 BUSINESS BRIEF PPG INDUSTRIES INC PENNSYLVANIA PLANT WORKERS TENATIVELY ACCEPT NEW PACT PPG INDUSTRIES INC SAID THE ALUMINUM BRICK AND GLASS WORKERS INTERNATIONAL UNION REPRESENTING HOURLY WORKERS AT PPG'S GREENSBURG PA AUTOMOTIVE REPLACEMENT WINDSHIELD PLANT ACCEPTED A CONTRACT PENDING A RATIFICATION VOTE PPG CALLED THE TENTATIVE ACCEPTANCE ENCOURAGING BUT WARNED THAT DIFFICULT CONDITIONS IN THE REPLACEMENT WINDSHIELD BUSINESS PLACE THE GREENSBURG PLANT AT RISK CHANCES OF PLANT EMPLOYMENT BEING RESTORED TO LEVELS COMMON SEVERAL YEARS AGO ARE REMOTE PPG SAID WORKERS CONTINUE TO STRIKE AT PLANTS IN CREIGHTON AND FORD CITY PA AND FRESNO CALIF 9306040094 930604 INTERNATIONAL BRITISH AIR FACES STRIKE DESPITE TALKS WITH UNION LONDON BRITISH AIRWAYS PLC'S MAIN UNION SAID IT WAS STILL SET TO STRIKE ON FRIDAY DESPITE RESOLVING SEVERAL ISSUES WITH THE AIRLINE OVER PAY AND WORKING CONDITIONS THERE HAS BEEN A PACKAGE PROPOSED BY THE COMPANY THAT OUR OFFICIALS ARE PREPARED TO RECOMMEND TO ALL OUR SHOP STEWARDS A SPOKESMAN FOR THE TRANSPORT AND GENERAL WORKERS UNION SAID HOWEVER BECAUSE OF THE LATE HOUR AT WHICH THE ARRANGEMENT WAS REACHED IT IS NOT POSSIBLE TO CALL OFF THE STRIKE SOME UNION MEMBERS INDICATED THE WALKOUT MIGHT NOT LAST THE FULL 24 HOURS THREATENED EARLIER THE STRIKE IS EXPECTED TO SERIOUSLY CURTAIL THE ACTIVITIES OF THE WORLD'S NO 1 INTERNATIONAL AIRLINE UNION MEMBERS WILL MEET AT 10 AM FRIDAY LONDON TIME TO DISCUSS THE PACKAGE THE UNION SPOKESMAN SAID THAT WHILE THE AIRLINE'S OFFER DIDN'T SPECIFICALLY MEET THE UNION'S PAY DEMANDS THE AIRLINE DID RECOGNIZE THE UNION'S RIGHT TO NEGOTIATE ON BEHALF OF WORKERS AT SUBSIDIARY COMPANIES THE UNION WANTS THE AIRLINE TO HALT PLANS TO MOVE MANY OF ITS FLIGHTS INTO A SUBSIDIARY BASED AT GATWICK AIRPORT TO SAVE MONEY THE TRANSPORT AND GENERAL WORKERS UNION REPRESENTS 17000 OF BRITISH AIRWAYS' 47000 WORKERS ITS MEMBERS INCLUDE GROUND CREW CHECKIN PERSONNEL AND CABIN ATTENDANTS 9306040093 930604 TECHNOLOGY BRIEF APPLE COMPUTER INC COMPANY FORMS ALLIANCES WITH BELLSOUTH AMERITECH BELLSOUTH CORP ATLANTA AND APPLE COMPUTER INC CUPERTINO CALIF SAID THEY WILL JOINTLY TEST A TELEPHONE WITH A DISPLAY SCREEN THAT LETS CONSUMERS DO BANKING SEND AND RECEIVE FACSIMILES AND GET INFORMATION SERVICES SEPARATELY APPLE AND AMERITECH CORP CHICAGO SAID THEY FORMED AN ALLIANCE TO PROVIDE ADVANCED MESSAGING SERVICES AMERITECH'S VOICE MESSAGING CUSTOMERS FOR EXAMPLE WILL BE ABLE TO GET NOTICES THAT MESSAGES ARE WAITING AND THEN READ THE MESSAGES USING APPLE'S NEWTON A COMPUTER DEVICE THAT IS EXPECTED TO BE AVAILABLE THIS SUMMER BELLSOUTH'S THREEMONTH TEST IS EXPECTED TO BEGIN LATER THIS MONTH IN THE ORLANDO FLA AREA USING A PROTOTYPE DISPLAY DEVICE DEVELOPED BY THE PERSONAL INTERACTIVE ELECTRONICS DIVISION OF APPLE ABOUT 50 HOMES AND SMALL BUSINESSES WILL TEST THE SYSTEM AND BARNETT BANKS WILL PROVIDE THE FIRST SERVICES INCLUDING ACCESSING BANK ACCOUNTS TO CHECK BALANCES AND REVIEW TRANSACTIONS 9306040092 930604 POLITICS & POLICY SQUEEZE ON FOREIGN AID SHOWS TRUTH OF TALK ABOUT SHRINKING US INFLUENCE BY CARLA ANNE ROBBINS STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PETER TARNOFF TOLD THE TRUTH MR TARNOFF IS THE UNDERSECRETARY OF STATE FOR POLITICAL AFFAIRS AND THE BRIEFLY ANONYMOUS SENIOR STATE DEPARTMENT OFFICIAL WHO EMBARRASSED HIS SUPERIORS BY TELLING REPORTERS THAT SHRINKING RESOURCES MEAN THE US CAN NO LONGER SOLVE ALL THE WORLD'S PROBLEMS BY ITSELF BUT DESPITE THE CHORUS OF DISAVOWALS THE FACTS TO A CONSIDERABLE EXTENT BEAR MR TARNOFF OUT AMERICA'S PRESENCE OVERSEAS IF NOT IN FULL RETREAT IS CERTAINLY BEING SQUEEZED AND HAS BEEN SINCE BEFORE PRESIDENT CLINTON TOOK OFFICE THE NUMBER OF US TROOPS IN EUROPE IS RAPIDLY DECLINING FOREIGN AID SPENDING MEANWHILE IS HOLDING FLAT DESPITE INFLATION AND NEW MULTIBILLION DOLLAR DEMANDS FROM THE FORMER SOVIET UNION AND EASTERN EUROPE THE KEY QUESTION NOW IS WHETHER THOSE SHRINKING RESOURCES INEVITABLY MEAN A LOSS OF AMERICAN LEADERSHIP THE ADMINISTRATION OFFICIALS WHO DISAVOWED MR TARNOFF'S COMMENTS INSIST THE ANSWER IS NO THAT THE US CAN STILL LEVERAGE ITS LIMITED RESOURCES TO ASSERT LEADERSHIP IN THE WORLD ADMINISTRATION CRITICS MEANWHILE POINT TO THE US'S HASTY RETREAT ON BOSNIA AND MR TARNOFF'S COMMENTS AS SIGNS OF ABDICATION AND CREEPING JIMMY CARTERISM AND WHILE ECONOMICS AREN'T NECESSARILY DESTINY THERE IS SURELY A CONNECTION MANY PEOPLE IN THE COUNTRY MAY CONTINUE TO HAVE GLOBAL PRETENSES BUT THEY ARE UNWILLING TO FINANCE THEM WITH GLOBAL RESOURCES SAYS CHARLES WILLIAM MAYNES EDITOR OF FOREIGN POLICY MAGAZINE WHAT WE ARE LIVING IN IS AN ERA OF HARD CHOICES BUT NO ONE WANTS TO ADMIT IT EVEN AS OFFICIAL WASHINGTON WAS STILL WRINGING ITS HANDS OVER MR TARNOFF'S COMMENTS CONGRESS WAS SQUEEZING STILL FURTHER THE US'S ALREADY SQUEEZED FOREIGN AID BUDGET WHILE FOREIGN AID IS FAR FROM THE ONLY INDICATOR OF INTERNATIONAL LEADERSHIP MILITARY STRENGTH DIPLOMATIC ACTIVITY AND MORAL SUASION ARE ALL VITAL COMPONENTS THE ACTIVITY ON CAPITOL HILL APTLY ILLUSTRATES MR TARNOFF'S ARGUMENT FIRST A KEY CONGRESSIONAL SUBCOMMITTEE SQUEEZED ANOTHER 14 BILLION OUT OF AN ALREADY TRIMMEDDOWN 143 BILLION FOREIGN AID REQUEST AT THE SAME TIME PRESIDENT CLINTON DECIDED THAT HE WOULDN'T ASK CONGRESS FOR ANY NEW CASH TO FUND HIS PLEDGE OF 18 BILLION IN NEW AID FOR RUSSIA AND THE FORMER SOVIET REPUBLICS INSTEAD THE ADMINISTRATION DECIDED TO RAID EXISTING FOREIGN AID AND DEFENSE COMMITMENTS FOR THE RUSSIA MONEY DEMOCRATIC REP DAVID OBEY OF WISCONSIN WHO CHAIRS THE HOUSE APPROPRIATIONS SUBCOMMITTEE THAT DID THE SQUEEZING SAYS HE ISN'T HAPPY ABOUT IT IN LIFE YOU DO WHAT YOU HAVE TO DO AND AS FAR AS I'M CONCERNED THE BIGGEST FOREIGN POLICY CHALLENGE WE HAVE IS RUSSIA HE SAYS WE HAVE TO RESPOND TO THAT NO MATTER WHAT OTHER PRIORITIES TAKE IT IN THE CHOPS DEVELOPMENT ASSISTANCE TO SOME OF THE WORLD'S POOREST COUNTRIES FINANCING FOR THE MULTILATERAL DEVELOPMENT BANKS AND MILITARY ASSISTANCE WILL ALL BE CUT FURTHER AND SOME OF THE MOST PAINFUL REDUCTIONS OFFICIALS SAY WILL COME FROM ECONOMIC SUPPORT FUNDS THE AID TO COUNTRIES DEEMED TO HAVE POLITICAL OR STRATEGIC VALUE TO THE US WHICH HAS BEEN SHRINKING SINCE THE END OF THE COLD WAR AT FIRST GLANCE THE NEW ROUND OF REDUCTIONS IN ECONOMIC SUPPORT FUNDS APPEAR RELATIVELY SMALL IF THE ADMINISTRATION'S RECOMMENDATIONS ARE ACCEPTED BY THE HOUSE AND SENATE AS IS LIKELY ABOUT 200 MILLION WILL HAVE TO BE CUT FROM A TOTAL 26 BILLION BUDGET BUT SINCE A LITTLE OVER 2 BILLION OF THAT BUDGET IS COMMITTED TO ISRAEL AND EGYPT AND SINCE NEITHER CONGRESS NOR THE PRESIDENT IS WILLING TO TAKE THE POLITICAL HEAT FOR TRYING TO CHANGE THAT THE WORLD'S ONLY SUPERPOWER WOULD WIND UP WITH JUST 370 MILLION IN SUPPORT FUNDS FOR THE REST OF ITS LONGTIME ALLIES AND DEPENDENCIES WITHOUT PUBLIC DEBATE OR FANFARE OFFICIALS ARE GOING THROUGH THE EXCRUCIATING PROCESS OF DETERMINING WHICH COUNTRIES WILL BEAR THE PAIN WITH NO MORE SOVIET UNION TURKEY 143 MILLION REQUESTED FOR FISCAL 1994 CAN NO LONGER BOAST OF ITS PROXIMITY TO RUSSIA AS A KEY STRATEGIC ASSET BUT THE CLINTON ADMINISTRATION WILL STILL HAVE TO THINK TWICE ABOUT SLASHING AID TO A NORTH ATLANTIC TREATY ORGANIZATION MEMBER A GULF WAR ALLY AND ONE OF THE ONLY DEMOCRACIES IN THE ISLAMIC WORLD ONE THAT IS STRUGGLING TO FEND OFF A RISING TIDE OF FUNDAMENTALISM EVEN MORE THAN TURKEY THE OTHER TWO BIGTICKET RECIPIENTS EL SALVADOR 90 MILLION FOR 1994 AND NICARAGUA 29 MILLION FOR 1994 ARE HOLDOVERS FROM THE COLD WAR BUT BOTH DEMOCRACIES ARE SHAKY AT BEST THE INK ON EL SALVADOR'S PEACE AGREEMENT IS BARELY DRY AND AFTER A DECADE OF USFINANCED PROXY WAR THERE'S A STRONG MORAL ARGUMENT FOR CONTINUED US HELP ANOTHER 100 MILLION WAS ORIGINALLY SLATED FOR HELPING THE COCAINEPRODUCING COUNTRIES OF BOLIVIA PERU AND COLOMBIA IN THE WAR ON DRUGS THE REMAINING 200 MILLION IS SCATTERED IN DRIBS AND DRABS OF 20 MILLION 10 MILLION 5 MILLION AND EVEN 2 MILLION TO OTHER PLACES IN THE WORLD THE WEST BANK AND GAZA STRIP THE PHILIPPINES CAMBODIA AFGHANISTAN JORDAN MOROCCO OMAN I CAN'T SAY THAT THE WORLD IS GOING TO COME TO AN END IF YOU CUT ANY OF THESE PROGRAMS SAYS MORTON ABRAMOWITZ PRESIDENT OF THE CARNEGIE ENDOWMENT FOR INTERNATIONAL PEACE AND A FORMER US AMBASSADOR TO TURKEY BUT WHAT SORT OF A WORLD ARE WE BUILDING UP IF FRIENDS SUDDENLY SAY SORRY YOU'RE NO LONGER IMPORTANT TO US' AT SOME POINT THESE THINGS HAVE AN EFFECT ON HOW COUNTRIES SEE THE US AND WHETHER WE CAN BE TRUSTED THE CLINTON ADMINISTRATION'S RECORD SO FAR IN NAVIGATING THESE TRICKY CURRENTS IS DECIDEDLY MIXED IT SUCCESSFULLY RALLIED THE ALLIES IN DEFENSE OF RUSSIA'S BORIS YELTSIN BUT FAILED TO DO SO IN BOSNIA ON BOTH ISSUES THOUGH THE LAST ACT HAS YET TO BE PLAYED ON BOSNIA THE U S COULD SOON BE PROVIDING AIR COVER FOR SAFE HAVENS AND IF A PEACE AGREEMENT IS EVER SIGNED THE ADMINISTRATION HAS PROMISED ITS ALLIES THAT IT WILL PROVIDE AT LEAST HALF OF WHAT COULD BE A 70000MEMBER PEACEKEEPING FORCE ON RUSSIA THE US IS STILL WAITING TO SEE HOW MUCH ITS ALLIES ARE WILLING TO ANTE UP TO MATCH AMERICA'S GENEROUS AID PLEDGES AND OTHER CHALLENGES AWAIT THE US HAS PLEDGED TO PROVIDE A MAJORITY OF PEACEKEEPERS FOR HAITI IF A POLITICAL SETTLEMENT IS REACHED AS WELL AS 100 MILLION A YEAR IN ECONOMIC AID FOR AT LEAST FIVE YEARS THE PRICE TAG FOR A MIDDLE EAST PEACE SETTLEMENT MEANWHILE WOULD ALMOST CERTAINLY BE FAR LARGER COUNTING MILITARY AS WELL AS ECONOMIC AID THE US ANNUALLY SPENDS 5 BILLION ON ISRAEL AND EGYPT TO GUARANTEE THE CAMP DAVID ACCORDS BUT THE PROSPECT OF A BROADER SETTLEMENT IS STILL SO FAR OFF THAT ADMINISTRATION OFFICIALS SAY PAYING FOR IT IS A PROBLEM THEY WISH THEY HAD TO FACE IN THE MEANTIME THEY SAY THEY'RE KEEPING THEIR FINGERS CROSSED THAT THE US ECONOMY WILL TURN AROUND ENOUGH TO MAKE A NEW PITCH FOR FOREIGN AID THAT IF NOT POPULAR IS AT LEAST TOLERABLE TO THE AMERICAN PUBLIC VERMONT DEMOCRATIC SEN PATRICK LEAHY WHO HEADS THE SENATE COUNTERPART OF REP OBEY'S PANEL SAYS THAT BEFORE THE AMERICAN PUBLIC CAN BE ASKED TO SPEND MORE THE ENTIRE AID PROGRAM NEEDS AN OVERHAUL TO REFLECT NEW AMERICAN PRIORITIES THE BOTTOM LINE IS THAT WE HAVEN'T DONE THAT HE SAYS AND UNTIL WE DO WE'RE JUST GOING TO BE COBBLING TOGETHER AND TAKING LEAST BAD ALTERNATIVES 9306040091 930604 LETTERS TO THE EDITOR BEWARE ALL WRITERS YOU MAY BE NEXT I REGRET THAT ROBERT BRAY THINKS OF PROF BERNARD DAVIS AS IGNORANT AND IS SO CRASS AS TO SAY SO IN PRINT LETTERS MAY 25 MR BRAY THINKS THE SAME THING ABOUT THE LINCOLN AND CIVIL WAR SCHOLARS WHO PUBLICLY EXONERATED ME IN 1991 YET THEY WERE FULLY REPRESENTATIVE OF THE SCHOLARLY COMMUNITY AND THEY REACHED THEIR JUDGMENTS IN SPITE OF RELENTLESS PRESSURE ON THEM TO RENDER A GUILTY VERDICT THEY DID NOT HAVE TO SIT IN SOLEMN PROFESSIONAL CONCLAVE THEY WERE NOT ELECTING A POPE THEY COMPARED MY TEXT TO THAT OF BENJAMIN THOMAS USED TRADITIONAL AUTHORITATIVE DEFINITIONS OF PLAGIARISM AS THEIR GUIDES AND CONCLUDED THAT COMMON PHRASEOLOGY AND COMMON FACTUAL MATTER FROM COMMON HISTORICAL SOURCES ARE NOT PROTECTED BY THE SANCTIONS OF PLAGIARISM AS FOR THOSE FEW TWO I BELIEVE WHO SUBSEQUENTLY RECONSIDERED THEIR INITIAL JUDGMENTS IT IS A MOOT QUESTION WHETHER SUCH RECONSIDERATION WAS PROMPTED BY FEELINGS OF HASTE OR BY FRIENDSHIP WITH ONE OF THE ACCUSERS OR BY HOT PRESSURES TO JOIN THE PACK OF PLAGIARISM ZEALOTS BUT I NOTICED THAT THOSE WHO HAD RECONSIDERED DID NOT OFFER UP THEIR BOOKS TO BE TESTED ON MESSRS STEWART AND FEDER'S SOCALLED PLAGIARISM MACHINE WHAT IS TO BE MADE OF MESSRS STEWART AND FEDER'S HUNDREDS OF PSEUDOSCIENTIFIC CONFIRMATIONS OF ALLEGED PHRASED PLAGIARISM IN MY WORK THE CONCEPT OF PHRASAL PLAGIARISM WHICH INCLUDES THE REPETITION OF THE SIMPLEST LANGUAGE AND ROUTINE FACTUAL MATTER IS A FRIGHTENING NOTION IF THIS BECOMES THE STANDARD FOR PLAGIARISM NO WRITING COULD EVER BE DONE INDEED THE STEWART/FEDER DEFINITION OF PLAGIARISM IS SO HOPELESSLY RESTRICTIVE THAT THEY HAVE REPEATEDLY VIOLATED THAT DEFINITION IN THEIR OWN PUBLISHED WORK MODEST THOUGH THAT IS IN AN ARTICLE IN NATURE FOR EXAMPLE THEY COPIED EIGHT CONSECUTIVE WORDS FROM A SOURCE WITHOUT ENCLOSING THOSE WORDS IN QUOTATION MARKS IN OTHER INSTANCES IN THE SAME ARTICLE THEY COPIED FIVE CONSECUTIVE WORDS FROM THE WORK OF OTHERS WITHOUT SURROUNDING THOSE WORDS WITH QUOTATION MARKS FOR HIS PART MR BRAY WOULD PREFER THAT THE 23 LINCOLN AND CIVIL WAR SCHOLARS BE CONSIDERED IGNORANT BIASED INCOMPETENT AND GUILTY OF RENDERING AN INTELLECTUALLY DISHONEST JUDGMENT THAT IS ONE THAT DISAGREES WITH MR BRAY'S AT THE SAME TIME HE LAMENTS THE JUDGMENTS OF THREE ANONYMOUS OUTSIDE REVIEWERS HANDPICKED BY THE AMERICAN HISTORICAL ASSOCIATION TO REACH A DECISION ABOUT MY LINCOLN BIOGRAPHY WHO COULD HAVE RENDERED ANY VERDICT THEY WISHED WITH TOTAL IMPUNITY BUT WHO STILL COULD NOT AND DID NOT USE THE P WORD IN MY CASE BECAUSE IT DID NOT APPLY IN MR BRAY'S MIND THOSE THREE ARE COWARDS HE DIDN'T USE THE DREADFUL C WORD BUT HE CERTAINLY IMPLIED IT THERE HAS BEEN NO VALID REFERENDUM THAT THE AHA FINDINGS THUS FAR ARE UNSATISFACTORY TO A SCHOLARLY COMMUNITY BUT IT IS OBVIOUS THAT THEY ARE UNSATISFACTORY TO MR BRAY SINCE HIS REPUTATION AND THAT OF MY OTHER ACCUSERS ARE ON THE LINE A CLEAR SCHOLARLY DEFINITION OF PLAGIARISM HAS BEEN IN THE PUBLIC DOMAIN FOR DECADES IT IS THE DEFINITION PUT FORTH BY ALEXANDER LINDEY IN HIS STUDY PLAGIARISM AND ORIGINALITY HARPER & BROTHERS 1952 BECAUSE IT IS THE LAST TRULY AUTHORITATIVE DEFINITION CRAFTED BY A REAL EXPERT THE ENTIRE COMMUNITY OF SCHOLARS AUTHORS PUBLISHERS AND JOURNALISTS SHOULD READ IT CAREFULLY BEFORE CONDEMNING ANYONE OF PLAGIARISM MR LINDEY STATES PLAGIARISM IS LITERARY OR ARTISTIC OR MUSICAL THEFT IT IS THE FALSE ASSUMPTION OF AUTHORSHIP THE WRONGFUL ACT OF TAKING THE PRODUCT OF ANOTHER PERSON'S MIND AND PRESENTING IT AS ONE'S OWN COPYING SOMEONE ELSE'S STORY OR PLAY OR SONG INTACT OR WITH INCONSEQUENTIAL CHANGES AND ADDING ONE'S NAME TO THE RESULT CONSTITUTE A SIMPLE ILLUSTRATION OF PLAGIARISM I DID NOT COPY SOMEONE ELSE'S STORY AND SIGN MY NAME TO IT I DID NOT EXPROPRIATE ANYONE ELSE'S SENTENCES PARAGRAPHS AND PAGES VERBATIM OR WITH ONLY INCONSEQUENTIAL CHANGES NOR DID I DO ANYTHING THAT CONSTITUTES VERBAL FRAUD AS DEFINED BY MR LINDEY OR BY COMMON SENSE AS IS POINTED OUT BY PROF KR ST ONGE AUTHOR OF THE MELANCHOLY ANATOMY OF PLAGIARISM UNIVERSITY PRESS OF AMERICA 1988 MR LINDEY'S DEFINITION HAS NEVER BEEN CHALLENGED ON LEGAL MORAL OR INTELLECTUAL GROUNDS IT IS THE SOURCE FROM WHICH PRACTICALLY ALL CURRENT DEFINITIONS OF PLAGIARISM ARE DERIVED ALL THAT IS EXCEPT THE NOVEL STEWART/FEDER DEFINITION THAT APPARENTLY WAS DESIGNED JUST FOR ME THESE TWO DIAL TWIDDLERS PROGRAMMED THEIR PLAGIARISM MACHINE TO LOOK FOR EXAMPLES OF THEIR DEFINITION IN MY BOOKS AND HAVE USED THE RESULTS IN A RELENTLESS PUBLIC CRUSADE TO DESTROY MY REPUTATION AND MY WORK WHERE I ASKED THEIR EMPLOYER THE NATIONAL INSTITUTES OF HEALTH DID TWO GOVERNMENT SCIENTISTS GET THE AUTHORITY TO INVESTIGATE A PRIVATE CITIZEN IN THE HUMANITIES DOING SO WITH TAXPAYERS' MONEY I HAVE NO FEDERAL GRANT MONEY AND NO TIES WHATEVER WITH THE SCIENTIFIC COMMUNITY ASSERTING THAT MESSRS STEWART AND FEDER HAD STRAYED FAR BEHIND THE NIH'S MISSION THEIR SUPERVISORS HAD THE GOOD SENSE TO UNPLUG THE STEWART/FEDER MACHINE CONFISCATE THEIR BOX OF ALLEGATIONS AGAINST ME AND HAVE THE TWO REASSIGNED BUT I DON'T FOR A MOMENT BELIEVE THEY WILL CEASE THEIR COMPUTERASSISTED HUNT FOR THEIR IDEA OF PLAGIARISTS THEY WILL SIMPLY HAVE TO DO IT ON THEIR OWN TIME AS FOR ROBERT BRAY HIS GAME IS TO HUSTLE THE ACADEMIC COMMUNITY INTO CHANGING THE RULES ON AN AD HOC BASIS AND ACCUSING PEOPLE OF PLAGIARISM AS IT GOES ALONG MESSRS STEWART AND FEDER WITH THEIR NEW COMPUTER TOY FOR PLAGIARISM ZEALOTS WILL TIRELESSLY AND MINDLESSLY FIND EVERY PHRASE ANYONE HAS EVER USED ANYWHERE AND COMPARE IT WITH THE WORDS WE WRITE ON SUCH A BASIS THE ZEALOTS CAN RUN TO THE PRESS CRYING PLAGIARIST AND THE PRESS WHICH THRIVES ON ACCUSATION WILL PRINT WHAT THEY SAY THOSE MOST PROLIFIC WILL BE AT PROPORTIONALLY GREATER RISK AND WILL BE THE MOST INVITING TARGETS I AM THAT TARGET NOW THE FIRST OF MESSRS STEWART AND FEDER'S VICTIMS OUTSIDE THE FIELD OF SCIENCE AND MEDICINE BUT OTHERS WILL FOLLOW ONLY THOSE WHO'VE SUFFERED THE SCOURGE OF PLAGIARISM CHARGES KNOW THAT THE INQUISITION IS AT WORK IN MY CASE THE INQUISITION IS WELL INTO ITS THIRD YEAR WITH NO END IN SIGHT WHICH AMOUNTS TO PERSECUTION HOWEVER THE TERM IS DEFINED MR BRAY SUGGESTS THAT THE 23 HISTORIANS WHO INITIATED A JOINT DEFENSE OF PROF OATES DID SO AT THE BEHEST OF A PUBLIC RELATIONS FIRM RETAINED BY MR OATES AND RATHER THAN DELIBERATE THE CHARGES AGAINST HIM DID NOT SERIOUSLY EXAMINE THE COMPLAINT THIS IS NOT TRUE THE IMPETUS TO DRAFT AND COSIGN A DEFENSE CAME FROM THREE HISTORIANS WHO DISCUSSED THE MATTER JOINTLY AND CAREFULLY AND THEN CIRCULATED THE STATEMENT AMONG THEIR COLLEAGUES WE WERE NOT RECRUITED BY A PUBLIC RELATIONS FIRM OR FOR THAT MATTER BY PROF OATES WHO DID NOT EVEN KNOW WE WERE ANNOUNCING OUR SUPPORT NEEDLESS TO SAY WE CAREFULLY EXAMINED THE MATERIAL PREPARED BY HIS ACCUSERS WE WERE SIMPLY UNCONVINCED BY THE CHARGES AND THE SOCALLED EVIDENCE TOO OFTEN DURING THE LONG CONTROVERSY OVER THE OATES BIOGRAPHY OF LINCOLN AND ITS SUPPOSED DEBT TO PREVIOUS BIOGRAPHICAL WORKS THOSE WHO ARE CONVINCED OF PROF OATES'S GUILT HAVE CLAIMED THAT THOSE WHO DISAGREE ARE UNINFORMED OR GUILTY THEMSELVES OF SOME HUGE PUBLICITY CAMPAIGN OPERATING IN DEFIANCE OF IRREFUTABLE EVIDENCE SUCH CHARGES ARE FRANKLY AN INSULT TO THE EMINENT PEOPLE WHO HAVE REACHED THEIR CONCLUSIONS ON THE MATTER CAREFULLY THE TRUTH IS THERE ARE THOSE OF US WHO SIMPLY DO NOT BELIEVE THAT PROF OATES PLAGIARIZED FROM BENJAMIN THOMAS WHOSE OWN WORK IN FACT OWED A HEAVY DEBT TO PREVIOUSLY PUBLISHED HISTORIES 9306040090 930604 BUSINESS BRIEF APACHE CORP COMPANY TO BUY PROPERTIES FROM HALLHOUSTON OIL CO APACHE CORP IN HOUSTON SAID IT AGREED TO BUY OIL AND GAS PROPERTIES LOCATED IN THE GULF OF MEXICO FOR A TOTAL OF 1255 MILLION CASH THE TRANSACTIONS WITH HALLHOUSTON OIL CO A CLOSELY HELD OIL AND GAS CONCERN INCLUDE AN AGREEMENT TO BUY HALL'S INTERESTS IN MUSTANG ISLAND BLOCKS 787 AND 805 FOR 293 MILLION AND A LETTER OF INTENT TO PURCHASE SUBSTANTIALLY ALL OF ITS REMAINING GULF PROPERTIES FOR 962 MILLION AFTER COMPLETING THE ACQUISITION OF THE PROPERTIES WHICH HAVE ESTIMATED NET PROVED RESERVES OF 112 BILLION CUBIC FEET OF NATURAL GAS EQUIVALENT APACHE'S NATURAL GAS RESERVES WILL INCREASE BY ABOUT 20 AS OF 1992 YEAR END SAID AN APACHE SPOKESWOMAN NET DAILY PRODUCTION FROM THE PROPERTIES IS EXPECTED TO AVERAGE 5055 MILLION CUBIC FEET OF NATURAL GAS AND 13001500 BARRELS OF CONDENSATE FOR THE SECOND HALF OF THE YEAR SAID APACHE THE ACQUISITIONS SUBJECT TO VARIOUS CONDITIONS ARE EXPECTED TO BE COMPLETED IN ABOUT 30 DAYS 9306040089 930604 ARTISOFT OUSTS SCHOOF FROM TOP TWO POSTS NAMES KEIPER CHIEF TUCSON ARIZ ARTISOFT INC SAID IT FIRED ITS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 34YEAROLD C JOHN SCHOOF II THE COMPUTERPRODUCTS MAKER NAMED WILLIAM C KEIPER 42 HIRED JUST SIX MONTHS AGO AS PRESIDENT AND CHIEF OPERATING OFFICER TO THE CHIEF EXECUTIVE POST A CHAIRMAN IS TO BE NAMED NEXT WEEK ARTISOFT SAID MR SCHOOF WHO FOUNDED THE COMPANY IN 1982 AND DEVELOPED MOST OF ITS PRODUCTS SAID HE WAS SHOCKED AND SURPRISED BY THE ACTION THAT WAS TAKEN BY A SPECIAL MEETING OF THE BOARD THERE WAS NO WAY I WAS THINKING THE COMPANY WAS GOING TO TERMINATE ME HE SAID MR SCHOOF WHO OWNS 20 OF THE COMPANY'S SHARES SAID HE CAST HIS VOTE AGAINST THE OUSTER HE SAID HE WOULD ATTEND THE MEETING TO CHOOSE A NEW CHAIRMAN BUT ODDS ARE I'LL JUST ABSTAIN FROM THE VOTE MR SCHOOF KNOWN AS SOMETHING OF A BOY WONDER IN COMPUTER CIRCLES HAS BEEN A PROFESSIONAL PROGRAMMER SINCE HE WAS 14 THE COMPANY SAID A CONFIDENTIALITY AGREEMENT WITH MR SCHOOF PREVENTED IT FROM DISCUSSING THE REASONS FOR THE OUSTER AS PREVIOUSLY REPORTED ARTISOFT REPORTED A SHARP DECLINE IN NET INCOME TO 333000 OR TWO CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31 FROM THE YEAREARLIER 36 MILLION OR 21 CENTS A SHARE ARTISOFT NOTED THE RESULTS FELL SHORT OF ANALYSTS' EXPECTATIONS 9306040088 930604 RIVEN MEMORIES PATHS OF RFK AIDES REFLECT THE DIVISIONS AMONG THE DEMOCRATS ANNIVERSARY OF ASSASSINATION FINDS WIDE DIVERGENCE ON HIS LEGACY'S MESSAGE NOW THE ENEMY IS CYNICISM BY JILL ABRAMSON AND GERALD F SEIB STAFF REPORTERS OF THE WALL STREET JOURNAL LOS ANGELES A FEW MILES FROM THE HOTEL WHERE AN ASSASSIN'S BULLET FELLED ROBERT F KENNEDY 25 YEARS AGO HIS DEMOCRATIC HEIRS ARE STILL GROPING IN THE DARK GATHERED HERE RECENTLY FOR A SYMPOSIUM ABOUT A MAN WHO WAS AN ELECTRIFYING FIGURE IN HIS PARTY DEMOCRATS SHOWED THAT NEITHER THE YEARS SINCE BOBBY KENNEDY WAS KILLED NOR TWO PRESIDENTIAL VICTORIES HAVE HEALED THE WOUNDS THAT HAVE DIVIDED THEM SINCE 1968 INSTEAD HIS HEIRS IN THE CLINTON ADMINISTRATION FIND THEMSELVES STRUGGLING TO FIND COMMON DEMOCRATIC GROUND ON SUCH FUNDAMENTAL QUESTIONS AS HOW MUCH TO SPEND ON DOMESTIC PROGRAMS WHETHER THERE IS A MORAL IMPERATIVE TO INTERVENE IN BOSNIA AND WHAT PHILOSOPHY SHOULD GUIDE THE GOVERNMENT'S CIVILRIGHTS EFFORTS THE IRONY IS PALPABLE FOR A GENERATION OF DEMOCRATS THAT TOOK BOBBY KENNEDY AS ITS HERO AND WAS INSPIRED BY HIS ABILITY TO PROJECT A UNIQUE COMBINATION OF TOUGHNESS AND COMPASSION IN THE FACE OF RACE RIOTS AND THE VIETNAM WAR HE FORGED A COALITION OF INNERCITY MINORITIES AND WORKINGCLASS WHITES DURING THE 1968 PRESIDENTIAL CAMPAIGN MOMENTS AFTER CLAIMING VICTORY IN THE JUNE 4 CALIFORNIA PRIMARY HE WAS FATALLY WOUNDED AT THE AMBASSADOR HOTEL HERE LAST YEAR MR CLINTON PARTIALLY REBUILT THAT COALITION IN HIS CAMPAIGN FOR THE WHITE HOUSE YET THE UPHEAVAL OF 1968 PROVIDED IN SOME RESPECTS MORE TANGIBLE TARGETS FOR THE DEMOCRATS THAN THE FOE THEY FACE TODAY DEEPROOTED PUBLIC CYNICISM TOWARD GOVERNMENT OVER THE PAST TWO DECADES THE NUMBER OF PEOPLE WHO HAVE EXPRESSED CONFIDENCE IN THE FEDERAL GOVERNMENT'S ABILITY TO DO ITS JOB HAS DROPPED FROM 74 TO ONLY 42 THERE WAS A SENSE OF POSSIBILITY THAT EXISTED IN 1968 OBSERVES POLITICAL COMMENTATOR MARK SHIELDS WHO RAN SEVERAL STATES FOR ROBERT KENNEDY IN THE 1968 CAMPAIGN WHAT BILL CLINTON IS FIGHTING IS A CLIMATE OF ABJECT PESSIMISM ABOUT THE EFFECTIVENESS AND VITALITY OF THE PUBLIC SECTOR AND ITS ABILITY TO ACHIEVE A STATED END MR CLINTON APTLY ILLUSTRATES THE DEMOCRATS' JOURNEY DURING HIS CAMPAIGN HE WRAPPED HIMSELF WITH THE MANTLE OF JOHN KENNEDY BUT IT WAS IN 1968 THAT MR CLINTON THEN A GEORGETOWN UNIVERSITY SENIOR AND RFK SUPPORTER REACHED POLITICAL MATURITY A COUPLE OF DAYS BEFORE OUR GRADUATION FROM COLLEGE MY ROOMMATES AND I WENT TO SLEEP FULL OF HOPE THEN WOKE TO DESPAIR MR CLINTON WRITES IN A FOREWORD TO A NEW BOOK ROBERT KENNEDY THE LAST CAMPAIGN MR CLINTON'S GEORGETOWN CLASS IS ONLY THIS YEAR AT ITS 25TH REUNION HOLDING THE CELEBRATORY HAWAIIAN LUAU IT CANCELED IN 1968 WHILE THE PRESIDENT SAYS HE IS A NEW DEMOCRAT A LABEL RFK ALSO APPLIED TO HIMSELF HIS ADMINISTRATION HAS NOT BEEN ABLE TO DEFINE THE TERM WITH ANY PRECISION DEMOCRATS ARE SPLIT ALONG NUMEROUS FAULT LINES LIBERALS VS CONSERVATIVES AND INSIDERS VS REFORMERS BEING ONLY THE MOST VISIBLE DIVISIONS WHAT IS MORE DEMOCRATS HAVE GROWN INCREASINGLY COMFORTABLE AS THE PARTY OF PERMANENTLY ELECTED CONGRESSIONAL INCUMBENTS AND OF SPECIAL INTERESTS AS A RESULT MANY ARE NOW RELUCTANT TO SHAKE UP WASHINGTON'S MONEY CULTURE BY SUPPORTING THE PROPOSED CLINTON CAMPAIGN FINANCE AND LOBBYING REFORMS THESE CONFLICTS PLAY THEMSELVES OUT EVEN IN THE DEBATES BOBBY KENNEDY'S CLOSEST ASSOCIATES HAVE OVER HIS LEGACY THAT'S CLEAR FROM THE LIVES AND VIEWS OF FOUR OF THEM PETER EDELMAN NOW A CLINTON ADMINISTRATION OFFICIAL ADAM WALINSKY NOW A CONSERVATIVE LAWYER JOHN LEWIS A CIVILRIGHTS LEADER NOW SERVING IN THE HOUSE OF REPRESENTATIVES AND FRANK MANKIEWICZ A PUBLICRELATIONS EXECUTIVE AT A BIG LOBBYING FIRM THEIR PERSONAL HISTORIES SINCE 1968 REFLECT THE PROBLEMS THAT PLAGUE DEMOCRATS DESPITE THE PARTY'S CONTROL OF BOTH THE WHITE HOUSE AND CONGRESS PETER EDELMAN IS STILL THE IDEALIST MR EDELMAN ONE OF THE YOUNG TURKS WHO WROTE ROBERT KENNEDY'S MOST MEMORABLE SPEECHES IN 1968 WAS THE MAN WHO BROUGHT RFK TO THE POOREST HAMLETS OF MISSISSIPPI AND SAYS KATHLEEN KENNEDY TOWNSEND OPENED MY FATHER TO EXPERIENCES HE HADN'T HAD TO THE PROBLEMS OF THE POOR AND DISADVANTAGED MR EDELMAN WHOSE WIFE MARIAN WRIGHT EDELMAN IS A MENTOR OF HILLARY RODHAM CLINTON AND FOUNDED THE CHILDREN'S DEFENSE FUND IS NOW A TOP OFFICIAL AT THE DEPARTMENT OF HEALTH AND HUMAN SERVICES AND HELPED CRAFT PRESIDENT CLINTON'S NATIONAL SERVICE PROGRAM MR EDELMAN RETAINS HIS CONVICTION THAT GOVERNMENT CAN DO GOOD HE LEFT A COMFORTABLE POST TEACHING LAW AT GEORGETOWN TO JOIN THE ADMINISTRATION TODAY HE SITS IN AN OFFICE ATOP THE GIANT HHS OFFICE BUILDING NAMED FOR MR KENNEDY'S 1968 RIVAL HUBERT HUMPHREY PONDERING THE SAME SOCIAL AND URBAN ISSUES THAT FIRED THE SOULS OF BOBBY KENNEDY'S FOLLOWERS AND STILL DIVIDE DEMOCRATS WE'VE ALWAYS HAD TWO COMPETING VISIONS IN THE PROGRESSIVE WING OF THE PARTY HE SAYS ONE HE CALLS THE SUBURBAN VISION WHICH STRESSES SOCIAL ISSUES AND MIDDLECLASS CAUSES SUCH AS THE ENVIRONMENT THE OTHER IS THE PEOPLE OF COLOR AND BLUECOLLAR VISION WHICH FOCUSES MORE ON ISSUES OF ECONOMIC JUSTICE AFTER BOBBY KENNEDY DIED THE SUBURBAN WING OF THE PARTY DOMINATED IN CANDIDATES AND THE WAY THE PHILOSOPHIES WERE DEVELOPED ALONG THE WAY MR EDELMAN WORRIES THE COUNTRY HAS FAILED TO SOLVE SOME OF THE BASIC PROBLEMS OF RACISM POVERTY AND URBAN VIOLENCE THAT TORE AT THE SEAMS OF AMERICA IN 1968 A CENTRAL FAILING WAS THAT WE DREW A LINE AROUND THE INNER CITY AND SAID STAY IN THERE' HE ARGUES FOR POOR AFRICANAMERICANS WE'VE SAID STAY IN THERE THE ONLY THING WE'LL OFFER YOU IS WELFARE THERE ARE NO JOBS' THE RESULTS ARE NOT SHOCKING WHEN YOU LOOK AT THE INPUTS MR EDELMAN THINKS DEMOCRATS HAVE LEARNED IMPORTANT THINGS IN 25 YEARS WE TENDED TO BELIEVE THERE WERE UNLIMITED FUNDS AVAILABLE IN THE 1960S WE THOUGHT IF YOU WORKED POLITICS RIGHT SHOOK THE MONEY TREE HARD ENOUGH YOU COULD GET FUNDS THAT IDEA IS GONE IN ADDITION HE SAYS I THINK WE REALLY DO UNDERSTAND THAT WHILE GOVERNMENT HAS A REAL ROLE EVERYBODY HAS TO HAVE A ROLE IN SOLVING THESE PROBLEMS IT MEANS PEOPLE NEED TO SERVE MR EDELMAN HAS SEEN AND DONE MUCH THAT IN THE QUARTER CENTURY SINCE MR KENNEDY DIED MIGHT HAVE JADED HIM HE HELPED FORMER SUPREME COURT JUSTICE ARTHUR GOLDBERG RUN AN UNSUCCESSFUL CAMPAIGN FOR GOVERNOR OF NEW YORK HE HAS FOUGHT FOR CONGRESSIONAL REFORM AND BEEN YOUTH COMMISSIONER OF NEW YORK STATE HE HELPED RUN EDWARD KENNEDY'S 1980 PRESIDENTIAL CAMPAIGN BUT HE DOESN'T SEEM JADED I BELIEVE WE HAVE TO KEEP AT IT HE SAYS NOT SURPRISINGLY HE FINDS MUCH HOPE FOR DEMOCRATS AND THE COUNTRY IN MR CLINTON BILL CLINTON IS VERY MUCH THE INHERITOR INTENTIONALLY OF BOBBY KENNEDY WE HAVEN'T HAD ANOTHER POLITICIAN WHO BROUGHT TOGETHER THAT BOBBY KENNEDY COALITION IN TWO DECADES ROBERT KENNEDY WAS THIS FASCINATING MIX OF OLD AND NEW POLITICS HE WAS AN IDEALIST WHO KNEW HOW TO COUNT ADAM WALINSKY HAS GROWN MORE CONSERVATIVE AND MORE CYNICAL AT LEAST ABOUT HIS PARTY AND THE ROLE OF GOVERNMENT HE WORKED SIDEBYSIDE WITH MR EDELMAN IN 1968 BUT THE TWO MEN ARE NO LONGER ON SPEAKING TERMS MR WALINSKY NOW A LAWYER IN PRIVATE PRACTICE AT A MANHATTAN FIRM DECRIES HOW THE BLEEDERS HIS TERM FOR SOCALLED BLEEDINGHEART LIBERALS HAVE IN HIS VIEW TWISTED THE MEMORY OF RFK INTO AN ULTRALIBERAL CARICATURE THEY OVERLOOK HE SAYS THE QUALITIES THAT FIRST ATTRACTED HIM TO MR KENNEDY NAMELY RFK'S EXPRESSION OF THE COURAGE AND NATIVE STRENGTH OF THE COUNTRY ALTHOUGH HE REMAINS A DEMOCRAT HE STILL SPORTS THE SIGNATURE PT109 TIE CLIP THAT MARKS A KENNEDY MAN FOREVER MR WALINSKY HAS ADVISED CONSERVATIVE REPUBLICANS INCLUDING FAILED NEW YORK GUBERNATORIAL CANDIDATE LEWIS LEHRMAN FOR YEARS HE HAS BEEN AT WAR WITH THE LIBERAL WING OF HIS PARTY HE HAS WARNED DEMOCRATIC CANDIDATES GOING BACK TO GEORGE MCGOVERN THAT TURNING LEFT MEANT LOSING KEY DEMOCRATIC CONSTITUENCY GROUPS THAT FUELED RFK'S SUCCESS PARTICULARLY CATHOLICS HE RAILS AGAINST THE MONDALE SCHOOL OF FOREIGN POLICY AND ON RACIAL ISSUES ASKS TO BE A GOOD DEMOCRAT DO I HAVE TO BUY THESE HORRIBLE QUOTAS MR WALINSKY SHARED ROBERT KENNEDY'S ANTIPATHY TO THE VIETNAM WAR AND AFTER THE ASSASSINATION WENT ON TO LEAD THE VIETNAM MORATORIUM MOVEMENT DESPITE HAVING A BROKEN HEART FOLLOWING RFK'S DEATH HE IS EASILY OVERCOME WITH EMOTION WHEN HE TALKS ABOUT HIS FORMER MENTOR HE SOUGHT TO ENTER POLITICS HIMSELF RUNNING UNSUCCESSFULLY FOR THE DEMOCRATIC NOMINATION FOR ATTORNEY GENERAL OF NEW YORK IN 1970 EVENTUALLY HE SWORE OFF ELECTIVE POLITICS AS HE BECAME DISGUSTED WITH THE GAPS BETWEEN CANDIDATES' PROMISES AND ACTION AND WITH THE LIBERAL DRIFT OF THE DEMOCRATS SINCE 1982 MR WALINSKY'S MAIN POLITICAL ACTIVITY HAS BEEN HIS ONEMAN CRUSADE TO ESTABLISH A NATIONAL POLICE CORPS IN WHICH STUDENTS COULD PAY FOR COLLEGE BY SERVING AS POLICE OFFICERS FOR FOUR YEARS AFTER GRADUATION THIS EFFORT HE SAYS WAS INSPIRED BY RFK WHO INSTILLED IN HIM THE BELIEF THAT YOU CAN BE A CITIZEN AND MAKE SOMETHING HAPPEN MR CLINTON EMBRACED THE PROPOSAL WHEN HE WAS GOVERNOR OF ARKANSAS AND THE IDEA WAS PART OF THE CLINTON CAMPAIGN PROGRAM NOW MR WALINSKY RETURNS TO WASHINGTON TO LOBBY FOR INCLUSION OF THE POLICE CORPS PROPOSAL IN THE CRIME PACKAGE THE ADMINISTRATION IS EXPECTED TO INTRODUCE SOON SO CLOSE TO SEEING HIS CHERISHED NOTION BECOME A REALITY MR WALINSKY DECLINES UNLIKE OTHER CONSERVATIVE DEMOCRATS TO CRITICIZE THE CLINTON TEAM'S EARLY MOVES YET IT IS CLEAR THAT HE STILL FEELS VERY MUCH OF AN OUTSIDER WITHIN HIS OWN PARTY COPIES OF THE AMERICAN SPECTATOR THE CONSERVATIVE MAGAZINE ARE DISPLAYED AROUND HIS OFFICE A JARRING JUXTAPOSITION WITH THE PHOTOGRAPHS AND DRAWINGS OF ROBERT KENNEDY THAT OTHERWISE DOMINATE THE DECOR THERE IS NO DISSONANCE ACCORDING TO MR WALINSKY I WAS VERY CONSERVATIVE THEN HE ASSERTS AND SO WAS ROBERT KENNEDY JOHN LEWIS THINKS DEMOCRATS HAVE LOST THE VISION OF AMERICA THAT DROVE RFK IF ROBERT KENNEDY COULD SPEAK TO THE DEMOCRATIC PARTY TODAY HE'D TALK ABOUT BUILDING A TRULY INTERRACIAL DEMOCRACY WE DON'T TALK ABOUT THAT ANYMORE LAMENTS MR LEWIS A VETERAN OF THE CIVILRIGHTS MOVEMENT WHO NOW IS A CONGRESSMAN FROM GEORGIA AND A MEMBER OF THE DEMOCRATIC LEADERSHIP TEAM IN THE HOUSE DURING HIS DAYS AS A CIVILRIGHTS ACTIVIST HE WAS JAILED 40 TIMES AND BEATEN SO OFTEN THAT HE STILL BEARS SCARS AND TALKS WITH A SLIGHT SPEECH IMPEDIMENT ON MARCH 7 1965 IN SELMA ALA MR LEWIS LED 600 DEMONSTRATORS ACROSS THE EDMUND PETTUS BRIDGE THEN WAS BEATEN BY SHERIFF'S OFFICERS AND STATE TROOPERS AND LEFT UNCONSCIOUS THREE YEARS LATER MR LEWIS SPOKE TO ROBERT KENNEDY FIVE MINUTES BEFORE HE WAS SHOT HE WAS WATCHING RFK'S VICTORY STATEMENT ON TELEVISION IN THE CANDIDATE'S HOTEL SUITE WHEN A SCENE OF JUBILATION SUDDENLY TURNED INTO ONE OF TRAGEDY AFTERWARD MR LEWIS TOOK THE FIRST PLANE HE COULD FIND HEADING BACK TO ATLANTA AND WEPT THROUGH THE ENTIRE TRIP RFK'S DEATH HIT MR LEWIS PARTICULARLY HARD BECAUSE IT CAME ON THE HEELS OF THE ASSASSINATION OF HIS OTHER HERO AND MENTOR MARTIN LUTHER KING JR ALTHOUGH REP LEWIS SAYS HE BELIEVES MR CLINTON HAS COME AS CLOSE TO ANY RECENT DEMOCRATIC PRESIDENTIAL CANDIDATE TO EMBODYING THE IDEALS OF RFK HE IS DISAPPOINTED WITH BOTH THE NEW ADMINISTRATION AND CONGRESS FOR FAILING TO PUT THE ISSUE OF RACE AT THE CENTER OF THE COUNTRY'S POLITICAL DIALOGUE WE DON'T TALK ABOUT HUMAN MISERY AND HUNGER AND POVERTY ANY MORE WE CAN SEE IT IN SOMALIA AND THE SUDAN BUT WE STILL HAVE HUNGER AND MALNUTRITION IN OUR OWN BACKYARD HE COMPLAINS REP LEWIS MAKES A POINT OF SLEEPING IN PUBLICHOUSING PROJECTS WHEN HE RETURNS HOME TO HIS DISTRICT YET HE RETAINS A MEASURE OF HOPE HE RECENTLY APPROACHED THE WHITE HOUSE AND FOUND SOME INTEREST THERE IN STAGING A CONFERENCE ON RACE TO MARK THE 30TH ANNIVERSARY OF DR KING'S I HAVE A DREAM SPEECH BUT REP LEWIS STRESSES IT WILL TAKE POLITICAL LEADERSHIP ON PRESIDENT CLINTON'S PART TO CREATE SUBSTANCE BEYOND SUCH SYMBOLISM I'M NOT SO SURE TODAY IN SPITE OF RHETORIC WE HEAR WHETHER WE HAVE BEEN ABLE TO CAPTURE A VISION OF AN INTERRACIAL SOCIETY AND GET PEOPLE TO SHARE AND PARTICIPATE IN THAT VISION THAT'S WHAT THE DEMOCRATIC PARTY NEEDS FRANK MANKIEWICZ IS THE CONSUMMATE DEMOCRATIC INSIDER ONE OF THE MORE SEARING IMAGES OF BOBBY KENNEDY'S ASSASSINATION WAS MR MANKIEWICZ'S EMOTIONAL ANNOUNCEMENT OF THE CANDIDATE'S DEATH A MOMENT HE SAYS HE STILL REMEMBERS IN MINUTE DETAIL THESE DAYS AS HE HAS FOR THE PAST DECADE THE FORMER RFK PRESS SECRETARY HAS PLAYED THE ROLE OF MR DEMOCRAT AT HILL & KNOWLTON PUBLIC AFFAIRS WORLDWIDE A LOBBYING AND PUBLICRELATIONS FIRM THAT DURING THE REAGAN YEARS WAS DUBBED THE POWER HOUSE BECAUSE OF ITS CLOUT IN WASHINGTON MR MANKIEWICZ REJECTS THE TITLE OF LOBBYIST AND SAYS THAT HE OCCASIONALLY DECLINES ON PRINCIPLE TO WORK WITH SOME OF HIS FIRM'S CLIENTS BUT HE HAS DRAWN CRITICISM FOR HIS WORK FOR THE KUWAITI GOVERNMENT IN EXILE DURING THE GULF WAR AND FOR HIS WORK UNTIL MID1991 FOR FIRST AMERICAN BANKSHARES INC THE WASHINGTON COMPANY ENMESHED IN THE BANK OF CREDIT & COMMERCE INTERNATIONAL SCANDAL I HAVE PEDDLED SOME INFLUENCE IN MY TIME MR MANKIEWICZ CONCEDES BUT NOT FOR BCCI ALTHOUGH HILL & KNOWLTON OPERATES ITS OWN POLITICAL ACTION COMMITTEE AND SOME OF HIS PARTNERS ARE LEADING FUNDRAISERS MR MANKIEWICZ DECRIES THE WAY MONEY HAS TAKEN OVER POLITICS HE HAS STAYED ACTIVE IN POLITICS HIMSELF HELPING TO RUN THE 1972 MCGOVERN PRESIDENTIAL CAMPAIGN AND WORKING IN EDWARD KENNEDY'S 1980 CAMPAIGN HIS WIFE WAS ONE OF MICHAEL DUKAKIS'S PRESS ADVISERS AND MR MANKIEWICZ SAYS HE KIBITZED WITH FRIENDS INSIDE THE CLINTON CAMPAIGN MR MANKIEWICZ SAYS HE IS SADDENED BY THE ADVERSARIAL RELATIONSHIP THAT HAS DEVELOPED BETWEEN THE PRESS AND POLITICAL CANDIDATES REMEMBERING THAT IN 1968 YOU DIDN'T HAVE THE SAVAGERY YOU SEE NOW HE HAS KEPT UP WITH SOME OF HIS COMPATRIOTS IN THE RFK CAMPAIGN PLAYING WITH MR EDELMAN IN A WEEKLY FATHERSON SOFTBALL GAME HE ALSO VOLUNTEERS FOR SEVERAL HUMANRIGHTS CAUSES AMID HILL & KNOWLTON'S LUXURY HE STILL CLEARLY MISSES THE SENSE OF MISSION AND IDEALISM THAT PROPELLED RFK'S QUEST FOR THE PRESIDENCY BUT YOU CAN'T SPEND 25 YEARS IN A POLITICAL CAMPAIGN HE SAYS RUEFULLY 9306040087 930604 GERMANY'S GDP SHRANK 15 IN FIRST QUARTER ANALYSTS SEE THE BOTTOM OF SLUMP BUT LOWER 1993 GROWTH FORECASTS BY CONNER MIDDELMANN SPECIAL TO THE WALL STREET JOURNAL FRANKFURT DESPITE WEAKERTHANEXPECTED ECONOMIC GROWTH DATA FOR THE FIRST QUARTER GERMANY'S SLUMP APPEARS TO BE SLOWING AND THE TROUGH IS IN SIGHT ANALYSTS SAY HOWEVER THE LATEST WESTERN GERMAN ECONOMIC DATA HAVE LED MOST ECONOMISTS TO REVISE THEIR 1993 GROWTH FORECASTS DOWNWARD AND ARE SEEN SUSTAINING THE ECONOMIC URGENCY FOR A CUT IN INTEREST RATES THE DATA CERTAINLY SUPPLY JUSTIFICATION FOR FURTHER EASING SAYS KLAUS BAADER ECONOMIST WITH UBS LTD IN LONDON THEY WILL BRING HOME TO THE BUNDESBANK HOW WEAK THE ECONOMY IS AND THAT CYCLICAL INFLATION PRESSURES AREN'T HIGH WESTERN GERMANY'S GROSS DOMESTIC PRODUCT CONTRACTED 15 DURING THE FIRST QUARTER OF 1993 COMPARED WITH THE FINAL QUARTER OF 1992 AND DECLINED 32 FROM THE YEAREARLIER QUARTER IT WAS THE SHARPEST YEARONYEAR CONTRACTION IN 18 YEARS WHILE ALL SECTORS OF THE ECONOMY SHOWED A YEARONYEAR DROP IN THE FIRST QUARTER THE DEEPEST SLUMP 148 WAS IN REAL SPENDING ON NEW PLANTS EQUIPMENT AND CAPITAL INVESTMENT GOODS THE DECLINES EXCEEDED THE WIDELY FORECAST DROPS OF 1 ON THE QUARTER AND 3 YEARONYEAR THIS HAS CAUSED MANY ECONOMISTS TO REVISE DOWNWARD THEIR FULLYEAR GDP FORECASTS UBS'S MR BAADER FOR ONE EXPECTS GDP TO FALL 225 TO 25 THIS YEAR INSTEAD OF 19 DB RESEARCH THE ANALYTICAL ARM OF DEUTSCHE BANK NOW IS CALLING FOR A 2 GDP CONTRACTION THIS YEAR INSTEAD OF A 15 TO 2 DROP GDP MEASURES THE TOTAL VALUE OF THE WESTERN REGION'S GOODS AND SERVICES BUT EXCLUDES EASTERN GERMANY AND INCOME GENERATED ABROAD THE MAIN REASON WHY THE DROP WAS LARGER THAN EXPECTED WAS LARGESCALE REDUCTIONS IN STOCKPILES WITHOUT WHICH THE QUARTERLY GDP DROP WOULD HAVE BEEN NEAR 04 MR BAADER SAID ANECDOTAL EVIDENCE FROM THE AUTOMOBILE AND CHEMICAL INDUSTRIES INDICATES THAT THE REDUCTION IN STOCKPILES APPEARS TO BE ALMOST OVER HE SAID THAT ALSO MAY EXPLAIN APRIL'S STRONGERTHANEXPECTED INDUSTRIAL PRODUCTION DATA RELEASED WEDNESDAY IT SHOWED WESTERN GERMANY'S OUTPUT RISING 04 IN APRIL FROM AN UPWARDLY REVISED MARCH FIGURE IF THE MARCH FIGURE HADN'T BEEN REVISED OUTPUT GROWTH IN APRIL FROM MARCH WOULD HAVE BEEN A PRELIMINARY 27 ANOTHER REASON FOR THE FIRSTQUARTER GDP SLUMP WAS THE EXTREME WEAKNESS OF THE WHOLESALE AND RETAIL SECTORS SAYS THOMAS MAYER SENIOR ECONOMIST WITH GOLDMAN SACHS OHG IN FRANKFURT THAT WAS REFLECTED BY THE 1 DROP IN CONSUMER SPENDING ALTHOUGH PART OF THE DECLINE MIGHT HAVE BEEN BECAUSE THE JAN 1 INCREASE IN VALUEADDED TAXES PROMPTED CONSUMERS TO MOVE FORWARD PURCHASES FORECASTING BOTTOM WHILE THE REBOUND STILL APPEARS TO BE SOME WAYS OFF THE DOWNTURN AT LEAST SEEMS TO BE STABILIZING ECONOMISTS SAY THE FLOOR WILL BE REACHED IN THE THIRD QUARTER OF THIS YEAR WITH SMALL GROWTH BEGINNING IN THE FOURTH QUARTER PREDICTS RAINER VEIT SENIOR ECONOMIST WITH DB RESEARCH HE EXPECTS THE CONTRACTION IN THE SECOND QUARTER TO BE SMALLER THAN IN THE FIRST QUARTER THE MAIN IMPULSE FOR THE EVENTUAL PICKUP IS LIKELY TO COME FROM INCREASED INVESTMENT SPENDING WHICH HAS DECLINED ABOUT 15 SINCE MID1991 SAYS MR VEIT ALSO HELPING ALBEIT TO A LESSER EXTENT WILL BE THE EXPORT SECTOR WHERE HE EXPECTS A MODEST RECOVERY TOWARD YEAR'S END INVENTORY BUILDUP AHEAD OF THE EXPECTED RECOVERY IN 1994 MAY GIVE THE ECONOMY A FURTHER LIFT IN THE SECOND HALF OF THIS YEAR GOLDMAN'S MR MAYER SPECULATES THE DESTOCKING OF THE LAST FEW MONTHS IS LIKELY TO END SOON AND BE REVERSED HE SAYS MEANWHILE PRIVATE SPENDING OFFERS LITTLE HOPE FOR THE GERMAN ECONOMY THE 1 RISE IN PENSION CONTRIBUTIONS FOR EMPLOYEES NEXT YEAR WILL CUT DISPOSABLE INCOME BY ABOUT 075 ESTIMATES UBS'S MR BAADER MOREOVER THE CONTINUING DECLINE IN REAL WAGES AND STILLRISING UNEMPLOYMENT WILL CURB INCREASED PRIVATE SPENDING AS A RESULT CONSUMER SPENDING SHOULD BE DEAD ON ITS FEET FOR THE NEXT FEW YEARS HE SAYS UNEMPLOYMENT IN WESTERN GERMANY IS PREDICTED TO HAVE INCREASED BY A SEASONALLY ADJUSTED AVERAGE OF 40250 IN MAY FROM APRIL A SURVEY OF ECONOMISTS FINDS IN APRIL A SEASONALLY ADJUSTED TOTAL OF 221 MILLION UNEMPLOYED WAS REPORTED THE DATA ARE TO BE RELEASED TODAY A FEW WEEKS AGO IT SEEMED SAFE TO ASSUME THAT THE BUNDESBANK WOULD REACT TO MOUNTING ECONOMIC GLOOM BY CUTTING RATES AGGRESSIVELY BUT AFTER M3 MONEY SUPPLY JUMPED BY 73 THROUGH APRIL NEARTERM INTEREST RATE CUTS HAVE BEEN PUT ON HOLD AND THE BUNDESBANK IS BELIEVED TO HAVE REVERTED TO A WAITANDSEE POLICY MAY M3 IS EXPECTED TO BE RELEASED AROUND THE THIRD WEEK OF JUNE 9306040086 930604 SUNBEAM'S EXHEAD SUES TWO INVESTORS COHORTS FOR DAMAGES PROVIDENCE RI PAUL B KAZARIAN FORMER CHAIRMAN AND CHIEF EXECUTIVE OF SUNBEAMOSTER CO FILED A LAWSUIT IN STATE SUPERIOR COURT HERE ACCUSING FORMER SUNBEAM COLLEAGUES AND INVESTORS OF SLANDER AND CONSPIRACY TO REMOVE HIM FROM HIS SUNBEAM POST MR KAZARIAN IS REQUESTING 32 BILLION IN DAMAGES BASED LARGELY ON A CALCULATION OF HOW HIS STAKE IN SUNBEAM WOULD HAVE APPRECIATED OVER THE NEXT DECADE HAD HE NOT BEEN FIRED MR KAZARIAN IS IN A BITTER DISPUTE WITH SUNBEAM OVER HIS OUSTER AS THE COMPANY'S CHIEF EXECUTIVE IN JANUARY HE HAS ALLEGED THAT SUNBEAM INVESTORS MICHAEL PRICE MANAGER OF MUTUAL SERIES FUND INC AND MICHAEL STEINHARDT WHO MANAGES A LARGE NEW YORK HEDGE FUND PERSUADED SUNBEAM'S BOARD TO FIRE HIM AND TOP MANAGERS TO MUTINY AGAINST HIM THE TWO INVESTORS HE ASSERTS FORCED HIM OUT SO THEY COULD REALIZE THEIR INVESTMENT GAINS IN THE COMPANY SUNBEAM DIRECTORS HAVE STATED THAT MR KAZARIAN WAS FIRED FOR BEHAVING ERRATICALLY ABUSING EMPLOYEES AND MAKING DECISIONS THAT COULD HURT THE COMPANY OF SEVERAL SUITS THAT HAVE BEEN FILED IN THE DISPUTE MR KAZARIAN'S FILING YESTERDAY IS THE FIRST TO DETAIL HIS CLAIMS ABOUT WHY THE INVESTORS WOULD WANT HIM FIRED INCLUDING THE NEED FOR BOTH INVESTORS TO LIFT RESTRICTIONS ON TRADING THEIR SUNBEAM STAKES A PARTNERSHIP FORMED BY TWO INVESTORS AND MR KAZARIAN WHICH CONTROLS ABOUT 77 OF SUNBEAM'S STOCK RESTRICTS MOST TRADING OF SUNBEAM SECURITIES UNTIL 1995 THE COMPLAINT ALLEGES THAT THE TWO INVESTORS THEIR RESPECTIVE DESIGNEES ON SUNBEAM'S BOARD AND MICHAEL LEDERMAN SUNBEAM'S GENERAL COUNSEL AND A DIRECTOR ENGAGED IN AN ABUSIVE PATTERN OF ACTIVITIES AGAINST MR KAZARIAN INCLUDING A SMEAR CAMPAIGN IN THE PRESS MR LEDERMAN WHO HAS DENIED MR KAZARIAN'S ALLEGATIONS IN THE PAST DECLINED TO COMMENT MESSRS PRICE AND STEINHARDT COULDN'T BE REACHED FOR COMMENT LATE YESTERDAY 9306040085 930604 LEISURE & ARTS BOOKSHELF A HUMANIST'S APOLOGIA PRO VITA SUA BY DONALD LYONS WHAT WAS ANCIENT GREECE THAT ALL THE SWAINS ADORE HER ASKED REBECCA WEST WHY SHE MEANT DOES CULTURE AFTER CULTURE SHOW SUCH EAGERNESS TO INSINUATE ITSELF INTO THE ACHIEVEMENTS OF THAT TINY BRIEF OLD CIVILIZATION IN FIFTHCENTURY ATTICA THAT INVENTED DEMOCRACY AND PHILOSOPHY AND THEATER IN THE 19TH CENTURY FOR INSTANCE BOTH VICTORIAN ENGLAND AND GERMANY CONCOCTED A FANTASY OF GREECE AS A SUNNY TEMPLE OF REASON AND PROGRESS THE NEXT CENTURY TRAUMATIZED BY HISTORICAL HORRORS SAW THE APPEARANCE OF BOOKS EXPLORING THE IRRATIONAL UNDERCURRENTS IN GREEK CULTURE TODAY NEW VOICES CLAIM A SHARE IN GREECE WITH SOME EAGER AFROCENTRISTS ATTEMPTING TO REVEAL HELLENISM AS AN OUTGROWTH OF AFRICAN CIVILIZATION YET ANOTHER STRAIN OF RECENT COMMENTARY FEMINISM SETS OUT NOT TO APPROPRIATE BUT TO INDICT ANCIENT GREECE FOR DOMESTICATING AND SILENCING WOMEN AN ATTITUDE BEST SEEN PERHAPS IN PERICLES' FUNERAL ORATION THE ATHENIAN GETTYSBURG ADDRESS WHEREIN WOMEN ARE TOLD THEIR GREATEST GLORY IS NOT TO EXCITE ATTENTION THIS SIDE OF HELLENISM HAS RECENTLY PROVOKED BOOKS WITH ACCUSATORY TITLES LIKE THE REIGN OF THE PHALLUS THESE ARE RAINY DAYS THEN FOR CLASSICS AND BERNARD KNOX FORMER DIRECTOR OF THE CENTER FOR HELLENIC STUDIES OFFERS AN UMBRELLA IN THE OLDEST DEAD WHITE EUROPEAN MALES AND OTHER REFLECTIONS ON THE CLASSICS NORTON 144 PAGES 1595 A COLLECTION OF THREE LECTURES THE FIRST OF WHICH GRAPPLES WITH SLAVERY AND SEXISM IN GREECE ON THE FORMER MR KNOX DOES LITTLE MORE THAN SAY WE ARE LITTLE BETTER OURSELVES AS TO SEXISM HE TRIES TO PARRY THE FEMINIST ASSAULT BY POINTING TO THE IMPRESSIVE ARRAY OF STRONG IF LETHAL WOMEN IN GREEK TRAGEDY FROM CLYTEMNESTRA TO MEDEA MEDEA IN PARTICULAR STRIKES A SUBVERSIVE NOTE AS SHE STANDS UP FOR THE COURAGE A KEY GREEK VALUE OF WOMEN SAYS SHE THEY SAY WE LIVE A LIFE FREE FROM DANGER IN THE HOUSE WHILE THEY FIGHT WHAT FOOLS I'D BE READY TO TAKE MY STAND IN BATTLE THREE TIMES RATHER THAN GIVE BIRTH JUST ONCE AT THE SAME TIME QUITE A NUMBER OF SUPPOSEDLY STALWART PATRIARCHAL FIGURES AMONG THEM AGAMEMNON AND JASON MEDEA'S HUSBAND COME OFF IN THE PLAYS AS CADS COWARDS AND LIARS IN THE NEXT PART MR KNOX FACES UP TO THAT GREAT SOURCE OF EMBARRASSMENT TO THE PROGRESSIVE WING OF HELLENISM THE UNDENIABLE FACT THAT TWO OF ATHENS'S GREATEST MINDS THE HISTORIAN THUCYDIDES AND THE PHILOSOPHER PLATO WERE NO FANS OF DEMOCRACY THUCYDIDES WAS A MODERATE CRITIC FOR PLATO DEMOCRACY DESTROYED ALL MORAL VALUES AND HELPED KILL HIS TEACHER SOCRATES MR KNOX FINDS AN ALTERNATIVE PRODEMOCRATIC SELFCRITICALLY LIBERAL TRADITION IN THOSE ITINERANT TUTORS OF PUBLIC SPEAKING THE SOPHISTS WHO ARE NOW LARGELY KNOWN TO US AS FRAUDS AND OBJECTS OF RIDICULE IN THE CLOUDS A COMIC PLAY BY ARISTOPHANES AND IN VARIOUS DIALOGUES BY PLATO UNFAIR SAYS MR KNOX THEY SHOULD BE SEEN RATHER AS THE FIRST PROFESSORS OF THE HUMANITIES SOMETHING MR KNOX CLEARLY IF NAIVELY REGARDS AS ANTITHETICAL TO A FRAUD WHO BROUGHT THEORY DOWN FROM THE SKIES TO THE HUMAN WORLD TO THE MORAL AND POLITICAL PROBLEMS OF MANKIND IN CONTRAST TO THE RIGIDLY CONTROLLED NIGHTMARE PROJECTED IN PLATO'S SUPPOSEDLY TOTALITARIAN REPUBLIC THE SOPHISTS ENCOURAGED THEIR STUDENTS TO QUESTION EVERY RECEIVED IDEA FROM SEXISM TO SLAVERY TO THE INGRAINED BELIEF THAT GREEKS WERE IPSO FACTO SUPERIOR TO BARBARIANS MR KNOX BELIEVES THAT IT WAS THANKS TO THESE SOPHISTS THAT ATHENIAN DEMOCRACY BECAME THE FIRST SOCIETY WE KNOW OF THAT WAS OPEN TO THE FREE PLAY OF IDEAS THIS VISION OF THE GLIB AND GREEDY SOPHISTS AS EARNEST MULTICULTURALISTS AVANT LA LETTRE MAY NOT BE ENTIRELY CONVINCING IN PART AT LEAST BECAUSE OF THE SLENDER FRAGMENTARY SOURCES UPON WHICH ANY COHERENT ACCOUNT OF THE SOPHISTIC MOVEMENT MUST REST BUT IT DOES TESTIFY TO THE ENDURING IMPULSE TO REINVENT THE ANCIENT GREEKS IN THE SELFIMAGE OF THE MOMENT MR KNOX DOES A BETTER JOB OF DEFENDING THE CLASSICS BY LETTING THEM SPEAK FOR THEMSELVES IN THE NEW NORTON BOOK OF CLASSICAL LITERATURE NORTON 866 PAGES 2995 HIS SELECTIONS COVERING GREEK AND LATIN LITERATURE RANGE FROM HOMER IN THE EIGHTH CENTURY BC TO SAINT AUGUSTINE WHO DIED IN 430 AD THE ANTHOLOGY HAS TWO VIRTUES ABOVE ALL LONG SUBSTANTIAL EXCERPTS FROM THE GREAT POETIC WORKS AND RECENT AND OFTEN MAGNIFICENT TRANSLATIONS WRITTEN FOR THE MODERN EAR BY RICHMOND LATTIMORE ROBERT FAGLES AND ROBERT FITZGERALD THE WHOLE ESSENTIAL ODYSSEY AT LEAST AS IT TELLS OF ODYSSEUS AND HIS WOMEN MORTAL AND IMMORTAL IS HERE RICH SLICES OF TRAGEDY ARE CAPPED BY THE INCLUSION OF THE WHOLE OF SOPHOCLES' ANTIGONE THAT EVERTIMELY WRESTLING MATCH BETWEEN CONSCIENCE AND LAW IN A TRANSLATION BY MR FAGLES THIS IS THE GREECE THAT WILL BE STANDING AFTER ALL THESE SQUALLS OF POLITICAL CORRECTNESS PASS THE LATIN PART INCLUDES MODERN VERSIONS OF PROPERTIUS BY EZRA POUND AND ROBERT LOWELL AND LOTS OF OVID WHOSE PERSONAL AND WITTY AND EROTIC TONES MR KNOX SEEMS TO PREFER TO THOSE OF THE OFFICIAL VIRGIL ONE SMALL QUIBBLE THERE'S TOO LITTLE HISTORY AND TOO LITTLE PHILOSOPHY IN BOTH PARTS EVEN SO THE BOOK IS A NOURISHING BUY 9306040084 930604 INTERNATIONAL BRIEF ENTE NAZIONALE IDROCARBURI ITALIAN STATE ENERGY GROUP SWUNG TO A LOSS LAST YEAR ITALIAN STATE ENERGY HOLDING ENTE NAZIONALE IDROCARBURI SAID IT SWUNG TO A CONSOLIDATED LOSS OF 815 BILLION LIRE 5576 MILLION IN 1992 FROM A PROFIT OF 1081 TRILLION LIRE IN 1991 ENI MANAGING DIRECTOR FRANCO BERNABE HAD FORECAST IN JANUARY THAT THE GROUP WOULD SHOW A PROFIT FOR 1992 THE ENICHEM SUBSIDIARY TURNED IN A LOSS OF 156 TRILLION LIRE IN 1992 SWOLLEN FROM 742 BILLION LIRE IN 1991 ENI HAS BEEN HEAVILY IMPLICATED IN ITALY'S CORRUPTION SCANDAL IN RECENT MONTHS WITH MANY CURRENT AND FORMER OFFICIALS UNDER ARREST OR INVESTIGATION FOR ALLEGED KICKBACKS IN RETURN FOR PUBLICWORKS CONTRACTS ENI'S RESTRUCTURING COMES AS IT TAKES STEPS TOWARD PRIVATIZATION WITH A RECOMMENDATION THAT ITS OIL AND GAS EXPLORATION AND PRODUCTION SUBSIDIARY AGIP SPA BE LISTED ON THE MILAN BOURSE 9306040083 930604 POTOMAC WATCH GUINIER IS GOING NO SHE'S STAYING NO GOING BY PAUL A GIGOT WHATEVER ELSE DAVID GERGEN WAS DOING IN BERMUDA THIS WEEK LET'S HOPE HE READ MACBETH'S ADVICE TO WOULDBE KINGS IF IT WERE DONE WHEN 'TIS DONE THEN 'TWERE WELL IT WERE DONE QUICKLY THE KING MR GERGEN IS NOW SERVING SEEMS TO PREFER SLOW PUBLIC TORTURE EVEN WHEN IT TURNS OUT TO BE HIS OWN A DECISIVE PRESIDENT OR AT LEAST ONE DECISIVELY INTENT ON MOVING FROM THE POLITICAL LEFT WOULD HAVE QUICKLY PULLED THE TRIGGER ON LANI GUINIER A DAY LATER HE WOULD HAVE NAMED A MODERATE TO THE SUPREME COURT AND EVERYONE WOULD HAVE FORGOTTEN HIS FIRST CHOICE OF A RADICAL CIVILRIGHTS NOMINEE BUT LEAVE IT TO THIS WHITE HOUSE TO TURN AN OBSCURE LAW PROFESSOR WITH EXOTIC VIEWS INTO A TREMOR AT THE FAULT LINES OF AMERICA'S RACIAL POLITICS PRESIDENT CLINTON FINALLY CUT MS GUINIER LOOSE FROM THEIR MUTUAL AGONY LAST NIGHT BUT NOT BEFORE DAWDLING SO LONG THAT HE HUMILIATED HER AND DAMAGED HIMSELF HE MADE MARIO CUOMO LOOK DECISIVE BY COMPARISON ONLY LAST MONTH MR CLINTON TOLD A CIVILRIGHTS DINNER THAT MS GUINIER WAS A FINE NOMINEE AND THE SENATE SHOULD GET ON WITH IT BUT THIS WEEK AFTER SENATE DEMOCRATS EXPRESSED OPPOSITION THE PRESIDENT SAID HER CRITICS WERE NOT ACCURATE EVEN AS HE ALSO SAID HE DIDN'T AGREE WITH ALL OF HER VIEWS WELL WHICH WAS IT WAS MR CLINTON WORRIED ABOUT MS GUINIER'S VIEWS OR THAT HER VIEWS HAD BEEN DISTORTED AS IS HIS HABIT HE WANTED TO AGREE WITH BOTH SIDES SUPPORTERS AND CRITICS THEN BLAME THE WHOLE MESS ON SOMEONE ELSE THE SENATE MEANWHILE WHITE HOUSE AIDES WERE PRIVATELY WHISPERING THAT HER NOMINATION WAS DOOMED EVEN AS THEY PUBLICLY PROMISED TO FIGHT FOR IT SUCH EPIC INEPTITUDE HAS NEEDLESSLY THREATENED THE FRAGILE BIRACIAL COALITION THAT MR CLINTON SO SKILLFULLY BUILT IN HIS 1992 CAMPAIGN FOR UNLIKE SISTER SOULJAH LANI GUINIER COULDN'T BE DISPATCHED WITH A SYMBOLIC LINE IN A SPEECH THE CIVILRIGHTS POST HAS ENORMOUS POWER TO MEDDLE IN LEGISLATURES AND AFFECT ELECTORAL OUTCOMES HER NOMINATION ALARMED SOUTHERN AND JEWISH MODERATES WHO KNOW SHE FAVORS RACIAL PREFERENCES AND MINORITY VETOES YET MR CLINTON'S WORLDCLASS WAFFLE THIS WEEK INVITED A COUNTERASSAULT FROM THE CIVILRIGHTS LEFT THE BLACK CAUCUS THREATENED TO MUTINY ON MANY ISSUES WHILE BENJAMIN CHAVIS OF THE NAACP BEGAN TO WAVE THE BLOODY SHIRT OF RACISM AT MS GUINIER'S OPPONENTS HIS INDECISION ONLY INCREASED THEIR SENSE OF BETRAYAL HER SUPPORTERS WILL ALSO SAY THAT CRITICS INCLUDING ME BORKED MS GUINIER BUT MS GUINIER UNLIKE JUDGE ROBERT BORK WASN'T ATTACKED FOR 20YEAROLD OPINIONS OR ACCUSED OF WANTING TO STERILIZE THE DISABLED SHE MERELY HAD THE BAD FORTUNE TO BE QUOTED ON WHAT SHE WROTE LAST YEAR HER SUPPORTERS SAY THESE QUOTATIONS WERE TAKEN OUT OF CONTEXT BY RIGHTWING CRITICS AMONG THESE NOTED RIGHTWINGERS APPARENTLY ARE THE NEW REPUBLIC MAGAZINE WILL MARSHALL OF THE PROGRESSIVE POLICY INSTITUTE CONNECTICUT DEMOCRATIC SEN JOSEPH LIEBERMAN AND THE AMERICAN JEWISH CONGRESS MY OWN SIN WAS TO EQUATE HER VIEWS WITH THOSE OF JOHN C CALHOUN SLAVERY'S INTELLECTUAL DEFENDER WHEN MS GUINIER HERSELF CITES CALHOUN AS A PRECEDENT IN ONE OF HER LAWREVIEW ARTICLES MS GUINIER WENT A LONG WAY TOWARD BORKING HERSELF ON ABC'S NIGHTLINE ON WEDNESDAY SHE SAID WHAT I AM TALKING ABOUT IS REALLY NO DIFFERENT THAN WHAT THE WHITE MINORITY IS TALKING ABOUT IN SOUTH AFRICA AND THAT IS THAT THE BLACK MAJORITY IN SOUTH AFRICA SHOULD RULE BUT IT SHOULD RULE IN A WAY THAT IS RESPECTFUL AND RECOGNIZES THE INTERESTS OF THE WHITE MINORITY THIS WAS HER DEFENSE MS GUINIER IS RIGHT ABOUT SOUTH AFRICA IN THAT NATION OF TRIBES OR IN BOSNIA OR LEBANON ETHNIC AND RACIAL TENSIONS ARE EXTREME ENOUGH TO REQUIRE EXTREME MINORITY PROTECTIONS BUT AMERICA WAS FOUNDED BY PEOPLE FLEEING SUCH TRIBALISM THE MAIN FLAW OF OUR FOUNDING SLAVERY WAS EXPUNGED IN A WAR FOUGHT ON BEHALF OF THE RIGHTS OF INDIVIDUALS REGARDLESS OF RACE LINCOLN DEFEATED CALHOUN SO AMERICA WOULD NOT BECOME SOUTH AFRICA THE ROOT OF MS GUINIER'S EXTREMISM IS THAT SHE BELIEVES AMERICA IS IRREDEEMABLY RACIST RACISM EXCLUDES MINORITIES FROM EVER BECOMING PART OF THE GOVERNING COALITION SHE WROTE IN 1991 IN THE VIRGINIA LAW REVIEW SO MS GUINIER FAVORS RACEDRENCHED POLITICAL REMEDIES THAT WOULD INEVITABLY LEAD TO RACIAL BALKANIZATION MS GUINIER MAY REALLY BELIEVE HER VIEWS AREN'T EXTREME BECAUSE IN HER POLITICAL WORLD THEY AREN'T SHE HAS BEEN A CENTRAL PART OF THE RALPH NEAS CIVILRIGHTS LOBBY THAT SMEARED AND DEFEATED ITS EVERY TARGET IN THE 1980S LIKE THE GUN LOBBY IT BEGAN TO THINK IT COULD NEVER LOSE SHE REAPED IN A SENSE WHAT SHE HAD SOWN AS FOR MR CLINTON THIS WILL HELP HIM IN THE LONG RUN IF IT REALLY IS PART OF BROAD MOVE TO THE CENTER BUT THE SUSPICION REMAINS BUTTRESSED BY THE GUINIER WAFFLING THAT THIS IS MORE TACTIC THAN STRATEGY THAT MR CLINTON'S ONLY CORE PRINCIPLE IS TO BEND TO THE STRONGEST POLITICAL FORCE DAVID GERGEN'S TASK NOW IS TO PREVENT THIS PRESIDENT FROM BECOMING THE DEMOCRATIC GEORGE BUSH A MAN WHO BELIEVES IN LITTLE AND IS RELUCTANT TO FIGHT EVEN FOR THAT 9306040082 930604 BUSINESS BRIEF RUBBERMAID INC HOME PRODUCTS DIVISION OVERSEES SPECIALTY PRODUCTS RUBBERMAID INC WOOSTER OHIO SAID IT IS REORGANIZING TWO UNITS GIVING ITS HOME PRODUCTS DIVISION RESPONSIBILITY FOR SPECIALTY PRODUCTS A RUBBERMAID SPOKESWOMAN SAID THE TWO UNITS SHARE MANY CUSTOMERS AMONG MASS MERCHANDISE AND DISCOUNT RETAILERS AND ADDED THAT HOME PRODUCTS WHICH IS THE LARGER OF THE TWO WILL BE ABLE TO SUPPORT THE GROWTH OF THE SPECIALTY PRODUCTS UNIT AS A RESULT OF THE CHANGE CHARLES A CARROLL 43 YEARS OLD PRESIDENT AND GENERAL MANAGER OF HOME PRODUCTS WILL ALSO HAVE RESPONSIBILITY FOR SPECIALTY PRODUCTS HE HAS BEEN GIVEN THE ADDED POST OF EXECUTIVE VICE PRESIDENT GARY F MATTISON 52 WILL BECOME PRESIDENT AND GENERAL MANAGER OF SPECIALTY PRODUCTS SUCCEEDING WILLIAM G SMITH 50 WHO WILL BECOME A CORPORATE VICE PRESIDENT IN CHARGE OF VENTURE DEVELOPMENT A NEWLY CREATED POST MR MATTISON HAS BEEN VICE PRESIDENT OF MANUFACTURING FOR THE HOME PRODUCTS UNIT 9306040081 930604 BUSINESS BRIEF US SHOE CORP SAMESTORE SALES ROSE 59 IN MAY TOTAL SALES UP 57 US SHOE CORP SAID SAMESTORE SALES INCREASED 59 IN MAY AND TOTAL RETAIL SALES ROSE 57 FOR THE FOUR WEEKS ENDED MAY 29 SALES OF US SHOE'S RETAILING OPERATIONS WERE 1753 MILLION COMPARED WITH YEARAGO SALES OF 1659 MILLION SALES OF WOMEN'S APPAREL DECLINED 04 IN MAY TO 963 MILLION WHILE SAMESTORE SALES DECLINED 06 IN THAT CATEGORY CINCINNATIBASED US SHOE OPERATES 1517 WOMEN'S APPAREL RETAIL STORES COMPARED WITH 1546 AT THE SAME TIME LAST YEAR MAY SALES IN THE EYEGLASS UNIT HELPED BY A PROMOTIONAL CAMPAIGN THAT BEGAN IN MIDAPRIL INCREASED 21 TO 529 MILLION SAMESTORE SALES ROSE 231 THE COMPANY HAS 449 DOMESTIC OPTICAL STORES AND 68 IN CANADA AND THE UK COMPARED WITH 438 DOMESTIC STORES AND 40 STORES IN THE UK AND CANADA A YEAR AGO MAY FOOTWEAR SALES FELL 87 TO 198 MILLION SAMESTORE SALES FELL 15 US SHOE HAS 403 FOOTWEAR STORES AND LEASED DEPARTMENTS DOWN FROM 453 A YEAR AGO 9306040080 930604 ABREAST OF THE MARKET INDUSTRIALS DECLINE 858 TO 354487 ON JITTERS ABOUT JOBLESS REPORT BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK JITTERS ABOUT TODAY'S EMPLOYMENT REPORT PROMPTED INVESTORS TO SELL STOCKS THE DOW JONES INDUSTRIAL AVERAGE FELL 858 POINTS TO 354487 IN HEAVY TRADING STANDARD & POOR'S 500STOCK INDEX SLID 136 POINTS TO 45249 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX EDGED 068 POINT LOWER TO 24959 THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 094 TO A RECORD 44091 ANALYSTS EXPECT THE LABOR DEPARTMENT REPORT ON LAST MONTH'S EMPLOYMENT TO BE UNCHANGED AT 7 AND NONFARM PAYROLLS TO HAVE RISEN BY 155000 IT WAS MORE OF A WAITANDSEE MARKET YESTERDAY SAID MARY FARRELL STOCK ANALYST AT PAINEWEBBER MS FARRELL SAID THAT IN PREVIOUS SESSIONS LEADERSHIP IN ONE GROUP OF STOCKS HELPED TO PUSH THE BROADER MARKET INDEXES HIGHER BUT YESTERDAY NO SINGLE GROUP OF STOCKS OFFERED INVESTORS A CONVINCING REASON TO CHASE PRICES HIGHER INDEED IF ANYTHING A SHARP DECLINE IN TRANSPORTATION ISSUES SPURRED INVESTORS TO SELL STOCKS INSTEAD OF BUY THEM ANALYSTS SAID LED BY DECLINES IN FEDERAL EXPRESS AND BURLINGTON NORTHERN THE DOW JONES TRANSPORTATION AVERAGE TUMBLED 2689 POINTS TO 157744 GAIL DUDACK STOCK MARKET STRATEGIST AT SG WARBURG IS BULLISH ON STOCKS BUT ONE PATTERN IN THE MARKET CONCERNS HER WHILE THE DOW JONES INDUSTRIALS CAREENED TO A RECORD RECENTLY AND THE S&P 500 IS CLOSE TO SETTING A RECORD THE TRANSPORTATION AND UTILITY AVERAGES ARE STILL A FAIR DISTANCE FROM THEIR HIGHS THE DOW JONES UTILITY AVERAGE FELL 006 YESTERDAY TO 24168 THE UTILITY INDEX IS PARTICULARLY WORRYING TO MS DUDACK WHO USES IT AS A LEADING INDICATOR FOR STOCK PRICES SHE SAYS THE UTILITY AVERAGE TENDS TO HIT A HIGH ABOUT FIVE MONTHS BEFORE THE BROADER MARKET I WOULD BE CONCERNED IF THE UTILITY AVERAGE WENT FOR SEVERAL MONTHS WITHOUT HITTING A NEW HIGH SAID MS DUDACK THE LONGER THE NONCONFIRMATION BY THE UTILITY AVERAGE THE WORSE THE CORRECTION ON THE OTHER END TRADING ON THE BIG BOARD WAS BRISK WITH 279899940 SHARES CHANGING HANDS A SLIGHT DROP FROM WEDNESDAY WHEN 287037510 SHARES CHANGED HANDS DECLINERS OUTNUMBERED ADVANCERS 1000 TO 881 ALLSTATE WAS THE SECONDMOST ACTIVE STOCK ON THE BIG BOARD JUMPING 2 3/8 TO 29 3/8 ABOUT 283 MILLION SHARES CHANGED HANDS REPRESENTING ALMOST 10 OF THE TOTAL VOLUME ON THE NEW YORK STOCK EXCHANGE LATE WEDNESDAY THE INSURANCE CONCERN SOLD 785 MILLION SHARES AT 27 APIECE IN THE LARGEST INITIAL PUBLIC OFFERING BY A US COMPANY FEDERAL EXPRESS TUMBLED 4 3/8 TO 45 1/2 DONALDSON LUFKIN & JENRETTE SECURITIES LOWERED ITS INVESTMENT RATING ON THE STOCK TO MODERATELY ATTRACTIVE FROM BUY BURLINGTON NORTHERN SKIDDED 2 3/4 TO 51 FIRST BOSTON ANALYST GRAEME ANNE LIDGERWOOD REDUCED HER 1994 EARNINGS ESTIMATE TO 425 A SHARE FROM 460 A SHARE MS LIDGERWOOD ALSO CUT HER FORECAST FOR THIS YEAR'S EARNINGS TO 385 FROM 4 A SHARE HER FORECASTS WERE BASED ON THE AGRICULTURE DEPARTMENT'S PROJECTION FOR LOWER GRAIN EXPORTS TRANSPORTING GRAIN CONSTITUTES 16 OF BURLINGTON NORTHERN'S REVENUE RESPONDING TO MS LIDGERWOOD'S ACTION BURLINGTON NORTHERN INVESTOR RELATIONS DIRECTOR JEFF MICHELL SAID IT IS TOO EARLY TO MAKE FORECASTS ABOUT GRAIN EXPORTS RETAIL STOCKS FELL AMID REPORTS OF LACKLUSTER SALES LAST MONTH MAY DEPARTMENT STORES LOST 1 TO 73 AFTER REPORTING A 46 INCREASE IN SAMESTORE SALES JC PENNEY DROPPED 1 1/8 TO 47 3/4 THE RETAILER'S SAMESTORE SALES ROSE 19 IN MAY AND DAYTON HUDSON SANK 3 1/4 TO 66 1/8 THE COMPANY SAID IT EXPECTS SECONDQUARTER EARNINGS TO BE SIGNIFICANTLY LOWER THAN LAST YEAR BECAUSE OF GENERAL WEAKNESS IN SALES LAST MONTH DAYTON HUDSON'S SAMESTORE SALES ROSE 11 BUT AUTO STOCKS SURGED ON REPORTS OF HEALTHY GAINS IN LATEMAY CAR SALES FORD MOTOR SOARED 2 3/8 TO 55 3/8 CHRYSLER ADDED 1 TO 46 3/8 AND GENERAL MOTORS EDGED UP 5/8 TO 41 SPRINT LOST 1 TO 31 1/4 AND AMERICAN TELEPHONE & TELEGRAPH SHED 1/2 TO 61 1/2 ANALYSTS SAID STOCKS OF BOTH COMPANIES WERE PRESSURED BY NEWS THAT BRITISH TELECOMMUNICATIONS WILL BUY A 20 STAKE IN MCI COMMUNICATIONS THE DEAL IS SEEN AS A DIRECT CHALLENGE TO AT&T AND TO A LESSER EXTENT SPRINT FIELDCREST CANNON CLIMBED 1 1/8 TO 28 5/8 THE HOUSEHOLD TEXTILE PRODUCTS CONCERN SAID IT AGREED TO SELL THE MAJORITY OF ITS CARPET AND RUG DIVISION TO MOHAWK INDUSTRIES FOR ABOUT 140 MILLION MAGNETEK SLUMPED 2 5/8 TO 19 1/2 THE ELECTRICAL PRODUCTS MAKER SAID WEDNESDAY THAT FOURTHQUARTER EARNINGS ARE LIKELY TO FALL WELL BELOW THE 35 CENT TO 40 CENT RANGE PROJECTED BY ANALYSTS APACHE GAINED 2 3/8 TO 28 1/4 THE COMPANY SAID IT HAS AGREED TO BUY OIL AND GAS PROPERTIES LOCATED IN THE GULF OF MEXICO FROM HALLHOUSTON OIL CO FOR A TOTAL OF 1255 MILLION MERRYGOROUND ENTERPRISES SLID 1 TO 11 3/4 THE COMPANY WHICH RUNS SPECIALTY FASHION STORES SAID FIRSTQUARTER PROFIT FELL TO FOUR CENTS A SHARE FROM 13 CENTS A YEAR AGO IN ADDITION THE COMPANY SAID SAMESTORE SALES FELL 4 IN MAY COUNTRYWIDE CREDIT SLIPPED 2 TO 28 SANFORD C BERNSTEIN & CO ANALYST JONATHAN GRAY CUT HIS INVESTMENT RATING ON THE MORTGAGE LOAN SERVICING CONCERN TO MARKET PERFORMER FROM BUY 9306040079 930604 WHAT'S NEWS BUSINESS AND FINANCE CLINTON'S ENERGY TAX IS LIKELY TO BE CUT BY ONEQUARTER TO ONETHIRD TREASURY SECRETARY BENTSEN BELIEVES BUT HE INDICATED THAT THE OUTCOME OF NEGOTIATIONS WITH BALKING SENATE DEMOCRATS IS STILL UNCERTAIN BENTSEN SAID HE IS REASONABLY OPTIMISTIC THAT HE AND THE FINANCE COMMITTEE CAN PARE THE ENERGY TAX PLAN AND CUT MEDICARE SPENDING ENOUGH TO GET A DEFICITREDUCTION BILL THROUGH THE SENATE PERHAPS BEFORE THIS MONTH ENDS THE ADMINISTRATION PLANS TO PROPOSE TAXING EMPLOYERPROVIDED HEALTH BENEFITS THAT ARE MORE GENEROUS THAN A NEW FEDERALLY GUARANTEED BENEFITS PACKAGE BUT EMPLOYEES WOULDN'T BE TAXED ON THE BASIC BENEFITS PACKAGE RETAIL SALES AT MAJOR CHAINS IMPROVED A BIT IN MAY THOUGH GAINS FOR SOME BIG RETAILERS WERE SMALLER THAN EXPECTED REFLECTING CONSUMERS' CONTINUED WORRIES OVER THE ECONOMY OVERALL SALES CLIMBED 37 AFTER RISING 26 IN APRIL FROM A YEAR BEFORE SALES OF NORTH AMERICANMADE VEHICLES ROSE SHARPLY IN LATE MAY REFLECTING A STEADY RECOVERY TO RESPECTABLE ALBEIT NOT BOOMYEAR LEVELS TIME WARNER AND TELECOMMUNICATIONS JOINED FORCES TO ESTABLISH A CABLE INDUSTRY STANDARD FOR THE ELECTRONIC SUPERHIGHWAY OF THE FUTURE COMPANIES FROM JAPAN THE UK AND CANADA UNDERSTATED USDERIVED INCOME BY MORE THAN 1 BILLION ON SOME 650 TAX RETURNS EXAMINED LAST YEAR INTERNAL IRS PAPERS SHOW US AND JAPANESE NEGOTIATORS PLAN TO MEET IN WASHINGTON NEXT FRIDAY TO DISCUSS A FRAMEWORK ACCORD AIMED AT OPENING JAPANESE MARKETS ALLSTATE SHARES JUMPED 88 ON ITS FIRST DAY OF TRADING AS INSTITUTIONAL ENTHUSIASM FOR THE STOCK SPILLED OVER TO RETAIL INVESTORS THE OFFERING'S RECORD SIZE WAS BOOSTED TO 24 BILLION THREE EASTMAN KODAK EXECUTIVES AND 10 SOFTWARE DEVELOPERS RESIGNED FROM KODAK'S PHOTO CD BUSINESS TO FORM A DIGITAL IMAGING UNIT FOR MORTIMER ZUCKERMAN'S APPLIED GRAPHICS METROPOLITAN LIFE INSURANCE PLANS TO TARGET UPPERINCOME PEOPLE AS A NEW MARKET THE MOVE BY THE LARGEST MIDDLECLASS LIFE INSURER TAKES AIM AT CIGNA AND EQUITABLE'S MARKET SHARE FINANCIER MARVIN DAVIS FORMED A COMPANY TO INVEST IN COMMUNICATIONS AND FINANCIAL SERVICES FIRMS VALUED AT UP TO 150 MILLION AND HIRED AWAY R RUDOLPH REINFRANK FROM ROY E DISNEY'S SHAMROCK HOLDINGS TO RUN IT VOLVO AND THE SWEDISH GOVERNMENT PLAN TO SPIN OFF THE FOOD UNIT OF PROCORDIA WHICH THEY JOINTLY CONTROL MOHAWK INDUSTRIES' STOCK SHOT UP 675 OR 25 TO 3425 AFTER IT AGREED TO BUY FIELDCREST CANNON'S CARPET AND RUG DIVISION FOR ABOUT 140 MILLION VOLKSWAGEN EXECUTIVES CRITICIZED GM FOR TRYING TO DISCREDIT J IGNACIO LOPEZ DE ARRIORTUA AND VOWED TO STAND BEHIND THEIR EMBATTLED EMPLOYEE IN HIS FIGHT WITH THE US CAR MAKER VW SAID LOPEZ HAS JOINED IT IN A SUIT AGAINST GM IN A GERMAN LABOR COURT INVESTORS IN PRUDENTIAL'S 35 ENERGY PARTNERSHIPS ARE QUIETLY BEING DOCKED FOR A PART OF SEVERANCE PLANS FOR PEOPLE IN THE FIRM THAT HELPED THE PARTNERSHIPS LOSE UP TO HALF THEIR VALUE BONDS LEHMAN BROTHERS TREASURY INDEX 513950 UP 1074 COMMODITIES OIL 1974 A BARREL OFF 29 CENTS DOW JONES FUTURES INDEX 12167 UP 093 SPOT INDEX 12003 UP 032 DOLLAR 10726 YEN UP 006 15995 MARKS UP 00017 9306040078 930604 LEGISLATORS SEEK TO OVERHAUL PHILIPPINE BANK HOUSE SENATE BILLS DIFFER ON WHO MUST ASSUME INSTITUTION'S BIG DEBTS BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL THE PHILIPPINE CONGRESS AFTER YEARS OF DRAGGING ITS FEET ON THE ISSUE APPEARS TO BE TAKING CONCRETE ACTION TO RESTORE THE FINANCIAL HEALTH AND INDEPENDENCE OF THE COUNTRY'S CENTRAL BANK BUT DEALING WITH THE BANK'S HUGE AND TO SOME EXTENT POLITICALLY SENSITIVE DEBTS COULD PROVOKE HEATED LEGISLATIVE DEBATE AND FURTHER DELAY THE RELEASE OF MILLIONS OF DOLLARS IN FOREIGN AID TIED TO THE OUTCOME OF THE LEGISLATIVE PROCESS IN THE PAST DECADE THE CENTRAL BANK OF THE PHILIPPINES HAS ACCUMULATED ABOUT 308 BILLION PESOS US1156 BILLION IN FOREIGN AND DOMESTIC DEBTS AS THE OBLIGATIONS SWELLED PUBLICSECTOR DEFICITS IN RECENT YEARS THE BANK WAS FORCED TO SURRENDER PART OF ITS CENTRALBANKING FUNCTIONS TO THE DEPARTMENT OF FINANCE IN ADDITION THE BANK'S POLICYMAKING MONETARY BOARD IS DOMINATED BY GOVERNMENT OFFICIALS FURTHER ERODING ITS INDEPENDENCE MONETARY POLICIES SHOULD BE THE SOLE DOMAIN OF THE CENTRAL BANK BUT IT IS TOO BANKRUPT TO BE EFFECTIVE SAYS TERESA PANINGCO AN ECONOMIST WITH THE CENTER FOR RESEARCH AND COMMUNICATIONS A MANILABASED THINK TANK TWO BILLS IN THE PHILIPPINE LEGISLATURE REFLECT A GROWING RECOGNITION AMONG ASIAN COUNTRIES WHOSE CENTRAL BANKS AREN'T KNOWN FOR THEIR INDEPENDENCE THAT THESE INSTITUTIONS SHOULD BE LESS FETTERED BY THE GOVERNMENT THAT'S BECAUSE POLITICIANS HAVE A PENCHANT FOR SPENDING AND INFLATIONARY GROWTH THAT IS CHECKED ONLY BY A MORE INDEPENDENT CENTRAL BANK WITH SOME CONTROL OVER MONEY SUPPLY THE HOUSE OF REPRESENTATIVES PASSED THE CENTRAL MONETARY AUTHORITY BILL EARLIER THIS WEEK AND THE SENATE IS EXPECTED TO VOTE ON ITS VERSION SOON BOTH VERSIONS PROPOSE THAT A NEW CENTRAL BANK BE ESTABLISHED WITH A MONETARY BOARD COMPRISING MOSTLY PRIVATESECTOR REPRESENTATIVES BUT THEY DIFFER ON THE DEGREE TO WHICH THE CENTRAL BANK CAN ELIMINATE ITS DEBTS WHEN THE SENATE VOTE IS COMPLETED LEGISLATORS WILL TRY TO REACH A COMPROMISE THE DEBATE IS EXPECTED TO BOG DOWN ON THE POLITICALLY CHARGED ISSUE OF WHO MUST SHOULDER THE BANK'S MOUNTAIN OF DEBT HOW IN HEAVENS CAN A CONGRESSMAN TELL HIS CONSTITUENCY THAT THE PUBLIC SHOULD BE RESPONSIBLE FOR 308 BILLION PESOS IN DEBTS IN THE NEXT 20 YEARS HE'LL GET STONED SAYS RAUL ROCO CHAIRMAN OF THE SENATE'S COMMITTEE ON BANKS CURRENCIES AND FINANCIAL INSTITUTIONS UNLESS THE NEW MONETARY AUTHORITY STARTS WITH A CLEAN SLATE RESTORING ITS INDEPENDENCE IS MOSTLY EMPTY TALK ECONOMISTS SAY SUCH AN OVERHAUL WOULD NARROW THE PUBLICSECTOR DEFICIT AND HELP EASE INTEREST RATES THE CENTRAL BANK'S WOES STEM MAINLY FROM THE HUGE FOREIGN DEBTS IT ASSUMED FROM MAJOR PHILIPPINE COMPANIES AND BANKS WHEN THE COUNTRY'S FOREIGNDEBT CRISIS ERUPTED IN 1983 OTHER LOSSES CAN BE TRACED TO THE LATE 1970S WHEN THENPRESIDENT FERDINAND MARCOS USED THE BANK TO AWARD FAVORS TO HIS CRONIES TO SERVICE ITS FOREIGN DEBT THE BANK HAS ISSUED NOTES TO RAISE DOMESTIC FUNDS AT THE SAME TIME IT HAS STEPPED UP SALES OF SHORTTERM BILLS DESIGNED TO REDUCE LIQUIDITY AND CURB INFLATION AT THE END OF 1992 TOTAL OUTSTANDING CENTRALBANK NOTES AND BILLS STOOD AT 675 BILLION PESOS UP FROM 407 BILLION PESOS A YEAR EARLIER ACCORDING TO OFFICIAL STATISTICS SERVICING ITS OVERALL DEBT HAS KEPT THE BANK IN THE RED SINCE THE MID'80S ACCORDING TO THE DEPARTMENT OF BUDGET AND MANAGEMENT THE CENTRAL BANK RECORDED A LOSS LAST YEAR OF 216 BILLION PESOS ABOUT THE SAME LEVEL AS 1991 BUT UP SHARPLY FROM 107 BILLION PESOS IN 1987 THE LOSSES HAVE MADE UP NEARLY HALF OF TOTAL PUBLICSECTOR DEFICITS IN RECENT YEARS AND HEAVY BORROWING BY THE CENTRAL BANK AND THE GOVERNMENT TO FINANCE THE DEFICITS HAS KEPT DOMESTIC INTEREST RATES HIGH BANKS CURRENTLY CHARGE THEIR MOST CREDITWORTHY CUSTOMERS 11 TO 12 AS THE CENTRAL BANK'S BALANCE SHEET HAS DETERIORATED THE BURDEN OF MONETARY POLICIES HAS SHIFTED TO THE FINANCE DEPARTMENT LAST YEAR ABOUT 448 BILLION PESOS IN TREASURY BILLS OR 13 OF THE TOTAL WAS ISSUED TO ABSORB EXCESS LIQUIDITY IN ANOTHER EXAMPLE OF ITS DEPENDENCE ON THE GOVERNMENT THE CENTRAL BANK ACCEPTS SUBSIDIES IN THE FORM OF INTERESTFREE DEPOSITS FROM THE FINANCE DEPARTMENT TO RESTORE THE BANK'S MONETARY CONTROL AND ELIMINATE THE 308 BILLION PESOS IN LIABILITIES THE HOUSE BILL PROPOSES THAT 300 BILLION PESOS IN GOVERNMENT BONDS WITH A TENURE OF 25 TO 30 YEARS BE ISSUED TO THE NEW MONETARY AUTHORITY ANNUAL INTEREST INCOME OF ABOUT 23 BILLION PESOS FROM THOSE BONDS WILL BE SUFFICIENT TO COVER THE SERVICING OF THE BANK'S HUGE DEBTS ACCORDING TO THE PLAN IN EFFECT THE GOVERNMENT WOULD ASSUME RESPONSIBILITY FOR THE DEBT HOUSE MEMBER GARY TEVES WHO SUPPORTS THE BILL SAYS THE PROPOSED REFORM ISN'T MERELY SWITCHING THE DEBT BURDEN FROM ONE SHOULDER TO ANOTHER THE RESTRUCTURING WILL HELP ESTABLISH PROFITABILITY FOR THE NEW CENTRAL BANK AND IN THE LONGER TERM REDUCE THE OVERALL PUBLICSECTOR DEFICITS HE SAYS A COMPANION BILL IN THE SENATE DOESN'T PROMISE TO RID THE NEW CENTRAL BANK OF ALL ITS LIABILITIES SOME SENATORS FEEL THAT THE BANK SHOULD BE HELD RESPONSIBLE FOR PART OF THE DEBTS A SENATE PROPOSAL ALSO WOULD REQUIRE THE NEW BANK TO SEEK BUDGET APPROVAL FROM THE CONGRESS ANNUALLY THAT WAY THE BANK WILL BE KEPT ON ITS TOES SEN ROCO SAYS RESPONDS MR TEVES HOW INDEPENDENT WILL THE NEW CENTRAL BANK BE IF IT IS SUBJECT TO CONSTANT SCRUTINY FROM CONGRESS 9306040077 930604 HARMON BUYS TWO COMPANIES NEW YORK HARMON INTERNATIONAL INDUSTRIES INC SAID IT REACHED AN AGREEMENT TO ACQUIRE AUDIOACCESS AND PHOENIX SYSTEMS TWO HIGHEND VIDEO AND AUDIO EQUIPMENT INSTALLATION CONCERNS TERMS WEREN'T DISCLOSED THE COMPANY ALSO SAID THAT CHRISTOPHER STEVENS GENERAL PARTNER OF AUDIOACCESS AND OWNER OF PHOENIX SYSTEMS WAS NAMED PRESIDENT OF HARMAN KARDON INC THE HARMON UNIT THAT MANUFACTURES HIGHFIDELITY AUDIO EQUIPMENT HARMON ALSO MAKES HIGHEND VIDEO EQUIPMENT MR STEVENS SUCCEEDS GRAHAM HALLETT WHO IS NOW A MEMBER OF THE PARENT'S CORPORATE MARKETING TEAM 9306040076 930604 WHO'S NEWS GLAXO NAMES INGRAM PRESIDENT OF US UNIT LONDON GLAXO HOLDINGS PLC A MAJOR PHARMACEUTICAL COMPANY NAMED ROBERT A INGRAM TO THE NEW POSITION OF PRESIDENT AND CHIEF OPERATING OFFICER OF ITS US UNIT GLAXO INC GLAXO INC WHOSE 1992 REVENUE OF 278 BILLION REPRESENTED ABOUT 39 OF THE PARENT'S 72 BILLION WORLDWIDE REVENUE SAID MR INGRAM WILL HAVE RESPONSIBILITY FOR THE MOREFUNCTIONAL UNITS OF THE COMPANY INCLUDING THE SALES AND MARKETING ORGANIZATION THE GLAXO RESEARCH INSTITUTE TECHNICAL OPERATIONS AND THE LEGAL FINANCE AND HUMANRESOURCES DEPARTMENTS MR INGRAM 50YEARSOLD WAS PREVIOUSLY GLAXO INC'S EXECUTIVE VICE PRESIDENT AND IS HIGHLY REGARDED WITHIN GLAXO AND THE DRUG INDUSTRY FOR TWO YEARS BEFORE JOINING GLAXO HE WAS PRESIDENT OF MERCK FROSST CANADA INC THE CANADIAN UNIT OF GLAXO'S RIVAL DRUG MANUFACTURER MERCK & CO GLAXO INC HAS NEVER BEEN HEALTHIER MR INGRAM SAID ADDING THAT HE WOULD CONTINUE TO EMPHASIZE THE COMPANY'S EFFORTS TO GROW BY DEVELOPING NEW PRESCRIPTION DRUGS A SPOKESMAN SAID CHARLES A SANDERS 61 CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF GLAXO INC HADN'T ANNOUNCED ANY PLANS TO RETIRE ALTHOUGH MR INGRAM WOULD NOT NECESSARILY SUCCEED DR SANDERS HE WOULD BE CONSIDERED A LEADING CANDIDATE FOR THE JOB THE SPOKESMAN ADDED GLAXO INC BASED IN RESEARCH TRIANGLE PARK NC ALSO NAMED GEORGE J MORROW 41 TO THE NEW POSITION OF GROUP VICE PRESIDENT IN CHARGE OF THE GLAXO PHARMACEUTICALS STRATEGIC BUSINESS UNIT HE WAS PREVIOUSLY VICE PRESIDENT AND GENERAL MANAGER OF CERENEX PHARMACEUTICALS THE SALES AND MARKETING DIVISION RESPONSIBLE FOR IMITREX GLAXO'S NEW MIGRAINE MEDICINE AND ZOFRAN WHICH FIGHTS NAUSEA AND VOMITING ASSOCIATED WITH CANCER CHEMOTHERAPY SEPARATELY THOMAS W D'ALONZO 49 GROUP VICE PRESIDENT IN CHARGE OF GLAXO INC'S ALLEN & HANBURYS STRATEGIC BUSINESS UNIT RESIGNED TO PURSUE OTHER INTERESTS THE US UNIT SAID 9306040075 930604 NATIONAL TECHTEAM CREDIT PACT DEARBORN MICH NATIONAL TECHTEAM INC A PROVIDER OF CORPORATE MANAGEMENT SERVICES SAID IT RENEWED ITS LINEOFCREDIT AGREEMENT WITH NBD BANK DETROIT THE NEW AGREEMENT INCREASED THE MAXIMUM ALLOWABLE BORROWING TO 25 MILLION FROM 2 MILLION 9306040074 930604 GANTOS MAY SALES OFF 14 GRAND RAPIDS MICH GANTOS INC SAID MAY SALES AT STORES OPEN ONE YEAR OR LONGER DECLINED 14 TO 196 MILLION DOWN FROM 228 MILLION A YEAR EARLIER SALES AT STORES OPEN LESS THAN A YEAR ALSO DROPPED 14 SAMESTORE SALES FOR THE FIRST 17 WEEKS OF THE YEAR SLIPPED 8 TO 783 MILLION FROM 848 MILLION A YEAR AGO SALES FOR STORES OPEN LESS THAN ONE YEAR ALSO FELL 8 FROM A YEAR AGO 9306040073 930604 GENERICDRUG MAKERS CIRCA AND BARR AGREE TO DROP LAWSUITS COPIAGUE NY GENERICDRUG MAKERS CIRCA PHARMACEUTICALS INC FORMERLY BOLAR PHARMACEUTICAL CO AND BARR LABORATORIES INC SAID THEY AGREED TO SETTLE LAWSUITS STEMMING FROM AN INDUSTRY SCANDAL THAT SURFACED IN THE LATE 1980S BARR POMONA NY ORIGINALLY SUED BOLAR IN 1991 IN FEDERAL COURT IN NEW JERSEY BARR ALLEGED THAT THE COMPANY VIOLATED RACKEETEERING AND CONSUMERPROTECTION LAWS BY WRONGFULLY OBTAINING APPROVAL TO MARKET GENERIC VERSIONS OF CERTAIN DRUGS BOLAR COUNTERSUED NEARLY A YEAR LATER SIMILARLY ALLEGING THAT BARR VIOLATED RACKETEERING LAWS TO DATE SEVERAL GENERICDRUG COMPANIES AND DOZENS OF INDIVIDUALS HAVE PLEADED GUILTY TO OR HAVE BEEN CONVICTED ON FRAUD AND CORRUPTION CHARGES IN CONNECTION WITH VIOLATIONS OF THE FOOD AND DRUG ADMINISTRATION'S MARKETINGAPPROVAL PROCESS FOR GENERIC DRUGS THE INVESTIGATION OF THE INDUSTRY IS CONTINUING BOTH COMPANIES SAID YESTERDAY THEY AGREED TO WITHDRAW THEIR CLAIMS SAYING THE POTENTIAL BENEFITS OF THE LITIGATION DIDN'T OUTWEIGH THE COST OF PROCEEDING CIRCA SAID IT AGREED TO PAY BARR 690000 TO COVER BARR'S LEGAL FEES AND OTHER EXPENSES SEVERAL FORMER BOLAR OFFICIALS HAVE PLEADED GUILTY TO CHARGES STEMMING FROM THEIR ROLES IN THE INDUSTRY INVESTIGATION BOLAR WHICH RECENTLY RENAMED ITSELF CIRCA HAS ALSO PAID FEDERAL FINES AND SETTLED CIVIL CASES AGAINST IT 9306040072 930604 LAW PROPOSED LOS ANGELES BAN ON SMOKING MAY SPREAD LOS ANGELES THE LOS ANGELES CITY COUNCIL'S PRELIMINARY APPROVAL OF A BAN ON SMOKING IN RESTAURANTS THIS WEEK IS ALREADY HAVING A DOMINO EFFECT THROUGHOUT SOUTHERN CALIFORNIA AND MAY WELL SPREAD TO OTHER CITIES ACROSS THE COUNTRY IF AS EXPECTED THE BAN GETS FINAL CITY COUNCIL APPROVAL NEXT WEEK AS WELL AS A SIGNATURE FROM THE MAYOR LOS ANGELES WOULD BECOME THE LARGEST CITY IN THE NATION TO PROHIBIT SMOKING IN RESTAURANTS HOWEVER THE PROPOSED BAN COULD BE DERAILED IF MAYOR TOM BRADLEY DOESN'T SIGN IT INTO LAW BEFORE HE LEAVES OFFICE AT THE END OF THE MONTH SINCE BOTH CANDIDATES APPEAR OPPOSED TO THE MEASURE THE NEIGHBORING CITIES OF BEVERLY HILLS SANTA MONICA WEST HOLLYWOOD AND PASADENA ARE READYING SIMILAR ORDINANCES WHICH THEY'LL ADOPT IF THE LOS ANGELES MEASURE IS APPROVED WITHOUT THE COORDINATED EFFORT A SMOKING BAN COULD BE ECONOMICALLY DEVASTATING BEVERLY HILLS BANNED SMOKING FOR A BRIEF TIME SEVERAL YEARS AGO BUT RESCINDED THE MEASURE AFTER RESTAURATEURS COMPLAINED OF LOSING BUSINESS TO ESTABLISHMENTS JUST OUTSIDE THE CITY LIMITS STILL ALL THOSE MEASURES COULD BE DERAILED BY THE STATE OF CALIFORNIA THE STATE ASSEMBLY VOTED 4333 YESTERDAY IN FAVOR OF A BILL PREVENTING CITIES AND COUNTIES FROM ADOPTING STRICT ANTISMOKING LAWS INCLUDING BANS ON SMOKING IN RESTAURANTS IF THE LAW IS PASSED BY THE STATE SENATE THAT WOULD MAKE OUR EFFORTS MOOT SAID A SPOKESMAN FOR COUNCILMAN MARVIN BRAUDE SPONSOR OF THE CITY'S PROPOSAL 9306040071 930604 WASHINGTON WIRE A SPECIAL WEEKLY REPORT FROM THE WALL STREET JOURNAL'S CAPITAL BUREAU BY RONALD G SHAFER CLINTON'S TAX BILL SPAWNS A FEEDING FRENZY OF LOBBYISTS FOR THE SENATE DEBATE A COALITION LED BY THE AMERICAN PETROLEUM INSTITUTE THE CHAMBER OF COMMERCE AND THE NATIONAL ASSOCIATION OF MANUFACTURERS PLEDGES TO SPEND 11 MILLION OR MORE TO DEFEAT THE ENERGY TAX OIL COMPANIES HOPE AT LEAST TO REPLACE THE BTU TAX WITH A GASOLINE TAX IT WOULD TAKE 25 CENTS A GALLON OR MORE TO RAISE AS MUCH REVENUE AS THE BTU TAX BUT THE INDUSTRY HOPES TO GET AWAY WITH 10 CENTS OR LESS OTHER SPECIAL INTERESTS PRESS TO BE EXEMPTED FROM THE BTU TAX THE ALUMINUM INDUSTRY ALREADY GRANTED SPECIAL TREATMENT IN THE BILL SEEKS MORE THE GLASS INDUSTRY DEMANDS THE SAME TREATMENT GIVEN ALUMINUM COMPANIES BOASTING A LETTER BY TREASURY SECRETARY BENTSEN PROMISING TO WORK TOWARD A LEVEL PLAYING FIELD SPECULATION PERSISTS THAT A CORPORATE RATE OF 36 MIGHT BE USED TO FILL THE REVENUE GAP BUT SENATE FINANCE CHAIRMAN MOYNIHAN STILL FAVORS A 35 RATE CHAOS REIGNS AT THE WHITE HOUSE AMID RESENTMENT OVER DAVID GERGEN HIRING ALMOST EVERY DEPARTMENT IS UNDER SIEGE HOUSE LEADERS LAMBASTE THE WHITE HOUSE'S OUTREACH ARM FOR FAILING TO GIN UP EITHER GRASSROOTS OR CORPORATE SUPPORT FOR THE NARROWLY PASSED DEFICITREDUCTION BILL CABINET OFFICERS COMPLAIN THEY CAN'T GET THROUGH TO THE PRESIDENT CLINTON BADMOUTHS HIS OWN POLITICAL OPERATION THE ARRIVAL OF FORMER REAGAN AIDE GERGEN AS WHITE HOUSE COUNSELOR STIRS TALK OF ANGRY DEPARTURES AIDES GROUSE THAT THEY ARE TOLD NOTHING ABOUT AN IMPENDING SHAKEUP EVEN AS RUMORS FLY THAT WELLLIKED PRESS SECRETARY DEE DEE MYERS WILL BE UPSTAGED BY A NEW COMMUNICATIONS CHIEF FOR SEVERAL DAYS AFTER THE GERGEN ANNOUNCEMENT THE WHITE HOUSE COMMUNICATIONS OFFICE REFUSED TO TAKE HIS CALLS PEROT FACES PRESSURE FROM FOLLOWERS TO BACK UP HIS TALK WITH MORE ACTION PEROT BACKERS IN PENNSYLVANIA FORM THEIR OWN PATRIOT PARTY AND ARE FIELDING CANDIDATES FOR A STATE SENATE SEAT AND THE STATE SUPREME COURT OTHER PATRIOT ORGANIZATIONS SPRING UP IN MARYLAND MICHIGAN VIRGINIA AND CALIFORNIA THE PEOPLE WHO WANT TO GET ACTIVE I CALL THEM ANTSY WANT TO GET OUT AND GET STARTED SAYS NICHOLAS SABATINE OF THE PENNSYLVANIA PARTY BUT PEROT'S UNITED WE STAND COULD LOSE ITS LEGAL AND TAX STATUS AS NONPARTISAN BY BACKING CANDIDATES THE GROUP'S RELEASE OF A POLL OF ITS TEXAS MEMBERS IN WHICH 84 SUPPORT GOP SENATE CANDIDATE KAY BAILEY HUTCHINSON COMES CLOSE TO THE LINE MEANTIME PEROT'S MAY 30 TV TALK DREW JUST 65 MILLION VIEWERS DOWN FROM THE 111 MILLION WHO WATCHED IN MARCH THE LATEST ONE TRAILED AMERICA'S FUNNIEST HOME VIDEOS BUT THAT DOESN'T STOP PEROT FROM PROMOTING HIMSELF AND HIS PROGRAMS HE HAS SIX RALLIES IN FOUR STATES PLANNED FOR THIS WEEKEND ALONE HEALTH CARE 101 CLINTON OFFICIALS AND LAWMAKERS ENVISION A UNIVERSITY ON HEALTH CARE ON CAPITOL HILL THIS SUMMER WHERE THEY STUDY AND DEBATE A DRAFT OF THE PRESIDENT'S HEALTH PLAN BEFORE HE MAKES A FINAL PROPOSAL HOUSE MAJORITY LEADER GEPHARDT HOPES TO START WORK ON A BILL BY YEAR'S END REPUBLICANS TARGET HOUSE DEMOCRATS WHO VOTED FOR CLINTON'S ECONOMIC PLAN AS TAX INCREASERS THE GOP CONGRESSIONAL CAMPAIGN COMMITTEE PLANS RADIO ADS NEXT WEEK IN THE DISTRICTS OF UP TO 20 DEMOCRATS DEMOCRATS CLAIM TO BE UNFAZED OHIO REP STRICKLAND SAYS HE GETS MORE CALLS ABOUT ABORTION LEGISLATION THAN HIS BUDGET VOTE CLINTON MULLS NAMING DIPLOMAT REGINALD BARTHOLOMEW AMBASSADOR TO ISRAEL THE PRESIDENT UNCEREMONIOUSLY YANKED WILLIAM HARROP BUSH'S ENVOY WHO ANGERED ISRAELIS BY SAYING THAT US AID MIGHT BE CUT THE WHITE HOUSE DISAGREED EXTENDING THE REACH OF US ENVIRONMENTAL LAWS OVERSEAS IS CONSIDERED BY THE NATIONAL SECURITY COUNCIL THE CHANGE COULD MEAN NEW RESTRICTIONS ON OCEAN DUMPING BY NAVY SHIPS AND A SHUTDOWN OF A USIAFINANCED RADIO ANTENNA IN ISRAEL SAID TO INTERFERE WITH BIRD MIGRATION ASPIN CARRIES PROSPECTS OF CLOSER TIES IN TALKS WITH UKRAINE AND RUSSIA THE DEFENSE CHIEF WILL SEEK TO END UKRAINE'S FOOTDRAGGING ON NUCLEAR DISARMAMENT AND ECONOMIC REFORM IN HIS VISIT THERE NEXT WEEK INCENTIVES MAY INCLUDE PROMISES OF UP TO 100 MILLION IN FEEDGRAIN CREDITS AND THE LION'S SHARE OF 300 MILLION IN AID FOR OTHER REPUBLICS IN CLINTON'S 18 BILLION RUSSIAN AID PACKAGE CLINTON ALSO MAY OFFER TO RALLY MORE INTERNATIONAL AID ASPIN WILL SEEK CLOSER MILITARY CONTACTS IN MEETINGS WITH THE RUSSIANS IN GERMANY OVER THIS WEEKEND ONE POSSIBLE IDEA A JOINT USRUSSIAN PEACEKEEPING EXERCISE ASPIN SAYS BOTH THE US DEFENSE BUDGET AND THE FUTURE OF YELTSIN ARE HEAVILY DEPENDENT ON THE RUSSIAN MILITARY SPLITS WITHIN THE RUSSIAN ARMY PROMPT SOME WESTERN EXPERTS TO WARN THAT IF THE MILITARY COMES APART RUSSIA ITSELF MIGHT DISINTEGRATE MINOR MEMOS AFTER GOP REP ARMEY CHARGED THAT HILLARY RODHAM CLINTON SOUNDS A LOT LIKE KARL MARX ALL HER FRIENDS ARE MARXISTS HIS PRESS AIDE TOLD REPORTERS I HOPE THIS DOESN'T TURN OUT TO BE AN ARMEY CALLS PRESIDENT'S WIFE A MARXIST' STORY WHAT A RELIEF A CATO INSTITUTE PRESS RELEASE HAS THE HEADLINE THE EARTH IS ALIVE AND WELL NEW BOOK ARGUES ARTHUR LEVITT CLINTON'S NOMINEE FOR SEC CHAIRMAN PUTS ROLL CALL THE GOSSIPY WEEKLY NEWSPAPER OF CONGRESS THAT HE BOUGHT IN 1986 UP FOR SALE 9306040070 930604 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN GERMANY ENDORSED A PROPOSAL TO GIVE EAST EUROPEAN COUNTRIES GREATER ACCESS TO THE EUROPEAN COMMUNITY MARKET SMOOTHING THE WAY FOR AGREEMENT AT A JUNE 2122 EC SUMMIT IN COPENHAGEN THE PLAN WOULD ACCELERATE THE DISMANTLING OF EC TARIFFS AND OTHERWISE BOOST ACCESS FOR GOODS FROM POLAND HUNGARY AND SEVERAL OTHER EASTERN COUNTRIES GERMAN ASSENT IS CRUCIAL AS THAT COUNTRY IS THE FUNNEL FOR MOST OF EASTERN EUROPE'S EXPORTS TO THE EC THE PROPOSAL WAS OPPOSED BY GERMAN INTEREST GROUPS SUCH AS FARMERS WORRIED ABOUT COMPETITION BUT POLAND SAID THAT A DECEMBER 1991 ACCORD HAD INCREASED THE EC'S TRADE SURPLUS WITH IT AND THAT IMPROVING MARKET ACCESS FURTHER WOULD SERVE LONGTERM POLISH AND EC INTERESTS MOST EC MEMBER COUNTRIES HAVE EXPRESSED RESERVATIONS ABOUT ASPECTS OF THE PACKAGE BUT IT IS EXPECTED TO BE APPROVED WITH FEW CHANGES JAPANESE DIRECT INVESTMENT ABROAD FELL FOR THE THIRD STRAIGHT YEAR CURBED BY AILING CORPORATE EARNINGS IN THE FISCAL YEAR ENDED MARCH 31 NEW INVESTMENT SUCH AS PURCHASES OF EQUITY STAKES IN FOREIGN FIRMS AND FACTORIES DROPPED 18 TO 3414 BILLION FROM A YEAR EARLIER THE DATA EXCLUDED REAL ESTATE AND DEALS USING FUNDS RAISED ABROAD DIRECT INVESTMENT IN THE US FELL 23 TO 1382 BILLION OR 41 OF THE TOTAL OFF FROM 43 A YEAR EARLIER EUROPE ATTRACTED 701 BILLION DOWN 25 AND THAT REGION'S SHARE FELL TO 21 FROM 23 BUT INVESTMENT IN ASIA SURGED 82 TO 643 BILLION BOOSTING ITS SHARE TO 19 FROM 14 UNEMPLOYMENT IN THE COMMONWEALTH OF INDEPENDENT STATES WILL SOON DWARF OTHER SERIOUS PROBLEMS IN THE FORMER EAST BLOC COMPOUNDING THE REGION'S INSTABILITY AN INTERNATIONAL LABOR ORGANIZATION OFFICIAL SAID IN FINLAND THE BIGGEST SINGLE CHALLENGE TO THE INTERNATIONAL COMMUNITY IN THE NEXT TWO YEARS WILL BE THE GROWTH OF MASS UNEMPLOYMENT IN THE FORMER SOVIET STATES GUY STANDING TOLD A COUNCIL OF EUROPE CONFERENCE ON ECONOMIC REFORM IN CENTRAL AND EASTERN EUROPE AN ILO SURVEY FOUND THAT RUSSIAN UNEMPLOYMENT DATA WERE CHRONICALLY UNDERSTATED AND THAT ONLY A FRACTION OF THOSE OUT OF WORK GOT JOBLESS BENEFITS WHICH ARE INSUFFICIENT CHINA HAS LAUNCHED A DRIVE TO MOVE AS MANY AS 13 MILLION PEOPLE FROM LAND TO BE INUNDATED BY THE WORLD'S LARGEST HYDROELECTRIC PROJECT THE THREE GORGES DAM ON THE YANGTZE RIVER AT SANDOUPING THE RELOCATIONS ARE EXPECTED TO COST 185 BILLION YUAN 323 BILLION FOR PAYMENTS TO DISPLACED FARMERS AND RESIDENTS OF ENTIRE VILLAGES AND CITIES SOME WITH POPULATIONS OF 100000 THE RESETTLEMENT EXPENSES ACCOUNT FOR A THIRD OF THE DAM PROJECT'S TOTAL ESTIMATED COST OF 57 BILLION YUAN EUROPE'S BIGGEST AIRLINES MADE A LASTMINUTE BID TO CHANGE A PROPOSED EUROPEAN COMMISSION CODE OF CONDUCT FOR COMPUTER RESERVATION SYSTEMS THEY SAID THE REVISED CODE IS A SELLOUT BECAUSE IT FAILS TO PREVENT US AIRLINES FROM SEEING THEIR EUROPEAN RIVALS' DATA SUCH AS SEAT AVAILABILITY AND FARES IN THEIR RESERVATION SYSTEMS EC TRANSPORT MINISTERS MAY CONSIDER ADOPTING THE CODE MONDAY THE ASSOCIATION OF EUROPEAN AIRLINES URGED SEPARATING RESERVATION AND OPERATIONAL INFORMATION SUDAN'S MILITARY GOVERNMENT CLAIMED SUCCESS IN A FOURYEAR ECONOMIC SALVATION PROGRAM THAT ENDS NEXT MONTH SAYING IT INCREASED FARM YIELDS AND ACREAGE UNDER CULTIVATION IRRIGATED AND RAINFED CULTIVATED AREAS TOTALED 315 MILLION ACRES UP 66 FROM 1989 WHEN THE MILITARY TOOK POWER IN A COUP THE TOTAL INCLUDED A 33 INCREASE IN IRRIGATED LAND TO 31 MILLION ACRES IMPROVED HARVESTS INCLUDED SORGHUM SUDAN'S STAPLE GRAIN WHICH SOARED 248 TO 55 MILLION TONS SESAME UP 136 AT 330000 TONS AND PEANUTS UP 142 AT 530000 TONS FOLLOWING TALKS WITH OFFICIALS AT JAPAN'S FOREIGN AND AGRICULTURE MINISTRIES MR HALE THREATENED TO REFER THE ISSUE TO THE CLINTON ADMINISTRATION FOR A DECISION ON IMPOSITION OF TRADE SANCTIONS UNLESS JAPAN SHOWS WILLINGNESS TO COMPROMISE IN TALKS NEXT WEEK AND AGREES TO SEND INSPECTORS TO WASHINGTON STATE ORCHARDS THIS MONTH MR HALE SAID HE WOULD FILE A COMPLAINT WITH THE US TRADE REPRESENTATIVE WHICH COULD LEAD TO RETALIATORY SANCTIONS IF JAPAN'S REGULATIONS WERE FOUND TO CONSTITUTE UNFAIR BARRIERS JAPAN BANS IMPORTS OF US APPLES ON GROUNDS THAT AGRICULTURAL PESTS COULD ENTER THE COUNTRY IN THE FRUIT HARMING DOMESTIC PRODUCERS US FARM AND TRADE OFFICIALS DENY A PEST PROBLEM AND HAVE URGED JAPAN FOR A DECADE TO LIFT THE RESTRICTION RUSSIA AND CHILE ENDED TWO DECADES OF HOSTILITY SIGNING A DECLARATION PROVIDING THE BASIS FOR IMPROVED RELATIONS AND COOPERATION IN TRADE ECONOMIC AND CULTURAL MATTERS INVESTORS FROM CHINA MOST OF THEM STATEOWNED ENTITIES BOUGHT 34 BILLION OF US BONDS LAST YEAR UP FROM 350 MILLION IN 1991 THE TOTAL INCLUDED 490 MILLION OF PUBLIC UTILITY BONDS A TENFOLD INCREASE AND 700 MILLION OF CORPORATE BONDS UP FROM 10 MILLION A YEAR EARLIER 9306040069 930604 TECHNOLOGY PDA DEVICES STAGE DEBUT AT TRADE SHOW BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL CHICAGO THE WAR OF THE PERSONAL DIGITAL ASSISTANTS BEGAN AS RIVAL MAKERS TOOK THE WRAPS OFF FINAL VERSIONS OF THEIR MUCHHYPED WIRELESS COMMUNICATOR/ORGANIZER DEVICES AT THE CONSUMER ELECTRONICS SHOW BUT AS RETAILERS GATHERED HERE FOR THE BIG TRADE SHOW THE MOST ANTICIPATED ENTRY THE NEWTON WHICH APPLE COMPUTER INC FIRST ANNOUNCED 18 MONTHS AGO KEPT A SURPRISINGLY LOW PROFILE APPLE DIDN'T HAVE A BOOTH ON THE SHOWROOM FLOOR FURTHERMORE THE COMPANY HAD ONLY NEARFINAL MODELS AND IT DIDN'T ANNOUNCE A SPECIFIC SHIP DATE INSTEAD COMMITTING TO DELIVER THE PRODUCT LATER THIS SUMMER SUCH VAGUE PLANS RAISED QUESTIONS AS TO WHETHER APPLE CAN DELIVER ON TIME AND WHETHER NEWTON WILL INCLUDE ALL THE ADVANCED TELECOMMUNICATIONS FEATURES INCLUDING FAXING AND WIRELESS MESSAGE DELIVERY THAT THE COMPANY HAS PROMISED MICHAEL D LIDDLE PRESIDENT OF DYNAMIC BYTES INC A PDA SOFTWARE DEVELOPER NOTES THAT WORKING MODELS OF NEWTON ARE SAID TO DELIVER ON ITS CAPABILITIES BUT HE ADDS NEWTON IS JUST A NAME IT'S BECOME A MARKET PRESENCE WITHOUT ANY SUBSTANCE INDUSTRY OBSERVERS MOREOVER SAY THAT NO MATTER WHEN THE VARIOUS PDAS ARRIVE IN STORES THEY COULD BE PRICED OUT OF REACH THE PRICES ARE TOO HIGH FOR THE CONSUMER MARKET MR LIDDLE SAYS SHARP CORP AND SEVERAL OTHER COMPANIES ALSO PLAN TO MAKE PDAS WHICH GENERALLY WILL USE ELECTRONIC PENS TO INPUT DATA BUT APPLE'S STRONGEST CHALLENGE COULD COME FROM TANDY CORP AND CASIO COMPUTER LTD WHICH YESTERDAY JOINTLY UNVEILED THEIR READYTODELIVER ZOOMERS TWO VERSIONS OF ONE DEVICE THE ZOOMER COULD BE THE FIRST TO LAND ON STORE SHELVES AND THE LEAST EXPENSIVE OF SUCH PRODUCTS IT MAY ALSO BOAST SOPHISTICATED CAPABILITIES THAT INDUSTRY ANALYSTS HADN'T ORIGINALLY EXPECTED THE MACHINES WILL BE AVAILABLE IN OCTOBER TANDY'S ZOOMER WILL SELL FOR 699 THROUGH TANDY RETAIL OUTLETS THE CASIO MODEL WILL HAVE A SUGGESTED RETAIL PRICE OF 899 THOUGH ITS ACTUAL SELLING PRICE WILL BE LOWER ONE ADVANCED APPLICATION ANNOUNCED YESTERDAY IS WIRELESS PAGING FOR THE ZOOMER ALLOWING USERS TO CALL UP ELECTRONIC MAIL THAT FEATURE IS BEING DEVELOPED BY MOTOROLA INC THE ZOOMER CAN ALSO SAVE HANDWRITTEN NOTES RECOGNIZE PRINTING TRANSLATE LANGUAGES AND RETRIEVE REFERENCE DATA AMONG OTHER CAPABILITIES IT WEIGHS LESS THAN A POUND AND RUNS ON REGULAR BATTERIES MEANWHILE OTHER COMPANIES ARE ENTERING THE FRAY SHARP SAYS ITS NEW PRODUCT BASED ON NEWTON TECHNOLOGY WILL BE SHIPPED TO RETAILERS IN THE THIRD QUARTER MICROSOFT CORP TOO IS DABBLING IN THE AREA AND A NEW ENTRY FROM EO INC THE STARTUP CONTROLLED BY AMERICAN TELEPHONE & TELEGRAPH CO WILL BE AVAILABLE AT SELECTED RETAILERS LATER THIS MONTH WHEN IT FINALLY IS DELIVERED APPLE'S NEWTON WILL SELL FOR WELL UNDER 1000 A SPOKESWOMAN SAYS APPLE'S PERSONAL INTERACTIVE ELECTRONICS DIVISION IS WORKING IN EXPLORATORY EFFORTS WITH THREE REGIONAL BELL COMPANIES AMERITECH CORP BELLSOUTH CORP AND U S WEST INC TO LINK NEWTON TO THEIR VARIOUS SERVICES SUCH AS FAX MESSAGING AND ELECTRONIC ONLINE SERVICES THE COMPANIES ALSO ARE LOOKING AT NEW DEVICES THAT MAY INCORPORATE NEWTON TECHNOLOGY APPLE SAYS AND APPLE NOTES THAT IT TOO HAS A DEAL WITH MOTOROLA FOR ELECTRONIC PAGING CAPABILITIES 9306040068 930604 REVIEW & OUTLOOK EDITORIAL ASIDES ASK MILWAUKEE PRESIDENT CLINTON CHOSE MILWAUKEE THIS WEEK FOR HIS TURNAROUND SPEECH AIDES SAID BECAUSE THE HEART OF THE HEARTLAND WAS THE BEST PLACE TO REPOSITION HIMSELF AS A NEW DEMOCRAT ONCE MORE THE CITY WASN'T A BAD PICK HAD HE VISITED THE MILWAUKEE SCHOOL OF ENGINEERING HE WOULD HAVE SEEN A WORKING PRIVATELY FUNDED VERSION OF THE KIND OF TECHNOLOGY TRAINING PROGRAMS BY WHICH HE BELIEVES GOVERNMENT CAN CREATE GOOD JOBS AT GOOD WAGES THE SCHOOL IS 90 YEARS OLD BUT AS NEW AS TOMORROW IN THE USE OF COMPUTERASSISTED DESIGN AND MANUFACTURING TECHNIQUES IT STRESSES HANDSON LEARNING AT THE DIRECTION OF NONTENURED FACULTY WHO USUALLY KEEP TIES TO INDUSTRY MSOE EMPHASIZES THE SPEEDY APPLICATION OF TECHNOLOGY TO COMMERCIAL PRODUCTS AND PROCESSES ADDRESSING EXACTLY THE WEAKNESS THAT MANY CRITICS OF US BUSINESS CITED IN RECENT YEARS MSOE IS DOING WHAT MR CLINTON AND THOSE WHO COTTONED TO HIS PROACTIVE AGENDA FOR BUSINESS IN 1992 SAY IS NECESSARY EXCEPT THAT IN MILWAUKEE IT'S BEING DONE THROUGH PARTNERSHIPS WITH COMPANIES THAT BENEFIT DIRECTLY FROM THE MSOE PROGRAMS NO DOUBT THE LABHEAVY SCHOOL'S ACHIEVEMENTS HAVE PLAYED A ROLE IN THE RELATIVE PROSPERITY OF SOUTHERN WISCONSIN DURING THE RECENT ROUGH PATCH IN THE NATIONAL ECONOMY THE REGION TYPIFIES THE GENERAL ATTITUDE OF COOPERATION THAT HAS LIFTED MANY A BASE OF AMERICAN INDUSTRY AT THE MILWAUKEE SCHOOL OF ENGINEERING AS AT SUCCESSFUL BUSINESSES THE SECRET HAS BEEN TO STAY CLOSE TO YOUR MARKET TECHNOLOGY SUPPORT AND TRAINING ARE NO DIFFERENT FROM MOST OTHER ENDEAVORS THEY'RE BEST ACCOMPLISHED WHEN GOVERNMENT STAYS OUT OF THE WAY 9306040067 930604 HEARD ON THE STREET ZALE'S GLITTER ATTRACTS ENTHUSIASTIC INVESTORS ON EVE OF FIRM'S EXIT FROM BANKRUPTCY COURT BY LAURA JERESKI STAFF REPORTER OF THE WALL STREET JOURNAL IS ZALE A DIAMOND IN THE ROUGH OR MERE CUBIC ZIRCONIA IT DOESN'T SEEM TO MATTER THIS STOCK ABOUT TO EMERGE FROM BANKRUPTCY COURT MAY BE AN INVESTOR'S BEST FRIEND ALREADY ENTHUSIASTS HAVE BID UP THE JEWELER'S NEW STOCK TO 12 1/4 IN WHENISSUED TRADING SHARPLY ABOVE THE PRICE OF 8 3/4 INDICATED IN THE COMPANY'S DISCLOSURE STATEMENT A GRUELING 16MONTH BANKRUPTCY OVERHAUL DIMMED THE LUSTER OF THE NATION'S LARGEST JEWELRYSTORE CHAIN AS THE COMPANY SHUTTERED NEARLY 700 UNPROFITABLE STORES OVER THE PAST TWO YEARS SALES SKIDDED TO 980 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 FROM 13 BILLION IN 1990 NOW ZALE IS EMERGING FROM A CHAPTER 11 PROCEEDING WITH A NEW STRATEGY FOR ITS REMAINING 1272 STORES NOT ALL OF THE COMPANY'S LUSTER COMES FROM ITS TURNAROUND SOME OF ZALE'S GLITTER IS DUE TO ACCOUNTING FOR THE REORGANIZATION THAT HELPS PUT A SHINE ON THE COMPANY'S PROJECTIONS OF FUTURE PROFIT SEVERAL BANKRUPTCY SPECIALISTS INCLUDING MAX HOLMES OF SALOMON BROTHERS JIM CURRY OF BDS SECURITIES CORP AND RAZ KAFRI OF GRANTCHESTER SECURITIES THINK THE STOCK STILL HAS ROOM TO RISE PART OF THE ATTRACTION IS THE TRACK RECORD OF OTHER NEW ISSUES DISTRIBUTED BY COMPANIES EMERGING FROM BANKRUPTCY PROCEEDINGS RECENTLY KINDERCARE LEARNING CENTERS WHICH WAS VALUED AT 10 IN ITS PLAN OF REORGANIZATION TRADED AS HIGH AS 17 1/4 BEFORE SETTLING DOWN TO 13 1/2 THE STOCK OF FEDERATED DEPARTMENT STORES ONE OF THE MOST BROADLY HELD SURVIVORS OF BANKRUPTCY COURT HAS MORE THAN DOUBLED INVESTORS ARE KEENLY AWARE THAT THERE AREN'T MANY MORE SUCH PLAYS LEFT INDEED A PRESENTATION BY ZALE'S NEW MANAGEMENT IN NEW YORK TUESDAY DREW A STANDINGROOM ONLY CROWD OF RETAILING ANALYSTS AND INSTITUTIONAL INVESTORS THE REORGANIZED COMPANY WILL LOOK CONSIDERABLY DIFFERENT FROM THE DEBTBURDENED BEHEMOTH THAT CAREENED INTO CHAPTER 11 PROCEEDINGS IN JANUARY 1992 GONE IS THE 16 BILLION OF JUNK DEBT AMASSED IN 1986 WHEN ZALE WAS BOUGHT BY CANADIAN JEWELER PEOPLES AND THE AUSTRIAN SWAROVSKI FAMILY THE DEBT WAS FURTHER DISTENDED BY THE 1989 ACQUISITION OF GORDON AT THE TIME THE SECONDLARGEST JEWELRY STORE CHAIN ZALE NEVER MADE THE GORDON ACQUISITION FIT THE PARENT COMPANY WAS BROUGHT DOWN ALMOST IMMEDIATELY BY EXCESSIVE DEBT AND BLOATED INVENTORY IN 1985 ZALE'S LARGEST COMPETITOR WAS GORDON SAID DEAN G GROUSSMAN WHO REJOINED THE COMPANY EIGHT MONTHS AGO AS CHIEF EXECUTIVE OFFICER AFTER AN EIGHTYEAR STINT AS CHIEF EXECUTIVE OF CANADIAN TIRE CORP WHEN I REJOINED ZALE'S LARGEST COMPETITOR WAS GORDON IT HADN'T CHANGED THE TWO DIVISIONS HAVE HAD AS MUCH AS 55 OF MERCHANDISE IN COMMON MR GROUSSMAN WANTS TO REDUCE THAT TO 20 BY COORDINATING PRODUCTBUYING BETTER AND SELLING DIFFERENT ITEMS IN EACH DIVISION ZALE STORES WILL SELL MOSTLY DIAMOND ENGAGEMENT RINGS AND OTHER BRIDAL JEWELRY WHICH HAS BEEN HALF THE COMPANY'S BUSINESS GORDON STORES WILL FOCUS ON A LOWERINCOME BUYER MORE APT TO BUY ON CREDIT MR GROUSSMAN HAS ALSO TACKLED ZALE'S SLOWTURNING INVENTORY THE SOURCE OF MORE THAN 100 MILLION IN PAST WRITEDOWNS IN APRIL THE COMPANY ROLLED OUT A 20 MILLION INVENTORYMANAGEMENT SYSTEM THAT FOR THE FIRST TIME WILL LET BUYERS AT HEADQUARTERS SEE WHERE DIFFERENT PRODUCTS ARE STORE BY STORE ALREADY RESULTS ARE IMPROVING COMPARABLESTORE SALES INCREASED A RELATIVELY STRONG 3 LAST YEAR IN THE MIDST OF THE BANKRUPTCYLAW PROCEEDING THE COMPANY HAS TAKEN ADVANTAGE OF THE BANKRUPTCY PROCESS TO SET UP RESERVES THAT WILL REDUCE COSTS GOING FORWARD THE BANKRUPTCYLAW PROCEEDINGS ALSO LET THE COMPANY ENJOY SOCALLED FRESH START ACCOUNTING BY WHICH IT REVALUES ITS ASSETS AT FAIR MARKET VALUE WHEN IT EXITS FROM CHAPTER 11 IN JULY ORDINARILY COMPANIES ARE LEFT WITH A REORGANIZATION ASSET NOT UNLIKE GOODWILL WHICH IS WRITTEN OFF OVER TIME BUT IN ZALE'S CASE THE COMPANY WILL HAVE NEGATIVE GOODWILL A CREDIT NOT A CHARGE THAT WILL BOOST PRETAX EARNINGS AT LEAST 30 MILLION A YEAR THAT CREDIT ARISES FROM ZALE'S DECISION TO TAKE A 180 MILLION WRITEOFF FOR ITS STORES RESULT THE COMPANY'S BOOK VALUE IS UNDERSTATED MAKING THE STOCK CHEAPER AT THE OUTSET BUT BEWARE THE ACCOUNTING ALSO MEANS THAT THE COMPANY'S MUCHTOUTED FIVEYEAR PROJECTIONS AREN'T SOLELY A REFLECTION OF AN IMPROVING BUSINESS OUTLOOK IN ITS DISCLOSURE STATEMENT THE COMPANY PROJECTS OPERATING PROFIT THIS FISCAL YEAR OF 926 MILLION OR 99 OF ANTICIPATED SALES BUT ONLY TWOTHIRDS OF THAT CAN BE ATTRIBUTED TO PROGRESS IN THE BUSINESS THE COMPANY INTENDS TO DISTRIBUTE ITS 41 MILLION SHARES OF NEW STOCK ON A FULLY DILUTED BASIS TO CREDITORS BY MIDSUMMER BUYERS OF THE STOCK ON A WHENISSUED BASIS WON'T RECEIVE ANY OF AN 85 MILLION LITIGATION SETTLEMENT WHICH IS TO BE DISTRIBUTED TO HOLDERS OF THE OLD BONDS WHEN THE COMPANY FINALLY LEAVES BANKRUPTCY COURT AS IS OFTEN THE CASE WITH COMPANIES EMERGING FROM BANKRUPTCY TRAVAILS NEWCOMERS WON'T GET ANYTHING LIKE THE DEAL ENJOYED BY PARTICIPANTS IN THE REORGANIZATION PLAN INDEED PROFITTAKING BY SOME OF THE PEOPLE MOST INVOLVED IN THE BANKRUPTCYLAW PROCEEDING MAY INDICATE SOME SKEPTICISM ABOUT ZALE'S LONGTERM FUTURE MARK DICKSTEIN OF DICKSTEIN & CO WHO HEADED ONE OF THE CREDITOR COMMITTEES HAS TOLD THE COMPANY HE'LL REDUCE HIS ONE MILLIONSHARE STAKE TO ONEFOURTH OF THAT 9306040066 930604 CORRECTIONS & AMPLIFICATIONS UNDER A PROPOSED PLAN TO PAY CREDITORS OF THE DEFUNCT LAW FIRM GASTON & SNOW FORMER PARTNERS WOULD CONTRIBUTE BASED ON A FORMULA TAKING INTO ACCOUNT PAST EARNINGS PROJECTED EARNINGS AND ESTIMATED NET WORTH AMONG OTHER THINGS LAST FRIDAY'S LEGAL BEAT COLUMN INCORRECTLY SAID CONTRIBUTIONS WOULD BE BASED SOLELY ON THE PARTNERS' EARNINGS AT THE LAW FIRM THE COLUMN ALSO INCORRECTLY SAID THE LAW FIRM ANDERSON KILL OLICK & OSHINSKY REPRESENTS 87 FORMER PARTNERS THE CORRECT NUMBER IS 12 EASTMAN KODAK CO'S STERLING WINTHROP UNIT AND ELF SANOFI A UNIT OF SOCIETE NATIONALE ELF AQUITAINE WILL TAKE THE LEAD ON DEVELOPING CLOPIDOGREL A COMPOUND TO TREAT CARDIOVASCULAR DISORDERS AN ARTICLE WEDNESDAY INACCURATELY SAID THE SANOFI GROUP IS TAKING THE LEAD ON THE PRODUCT AMERICAN INTERNATIONAL GROUP INC NAMED BRIAN DUPERREAULT EXECUTIVE VICE PRESIDENT FOREIGN GENERAL INSURANCE FILLING A VACANCY AN ITEM YESTERDAY INCORRECTLY SAID THE POSITION WAS NEWLY CREATED FEDERAL HOME LOAN MORTGAGE CORP NAMED JOHN GIBBONS ASSISTANT TO THE CHAIRMAN AND ACTING CHIEF FINANCIAL OFFICER AT ITEM YESTERDAY INCORRECTLY SAID HE WAS NAMED ASSISTANT TO THE POST OF ACTING CHIEF FINANCIAL OFFICER 9306040065 930604 ECONOMY SALES OF NORTH AMERICANMADE VEHICLES SHOWED STRENGTH IN LAST 10 DAYS OF MAY BY DOUGLAS LAVIN STAFF REPORTER OF THE WALL STREET JOURNAL DETROIT LED BY IMPRESSIVE BIG THREE GAINS SALES OF NORTH AMERICANMADE VEHICLES ROSE SHARPLY IN LATE MAY REFLECTING A STEADY RECOVERY TO RESPECTABLE ALBEIT NOT BOOMYEAR LEVELS DOMESTIC CARS AND TRUCKS SOLD IN THE FINAL 10 DAYS OF MAY AT A SEASONALLY ADJUSTED ANNUAL PACE OF 123 MILLION VEHICLES UP 25 FROM THE 12 MILLION RATE OF THE PREVIOUS 30 DAYS AND WELL AHEAD OF THE DEPRESSED YEARAGO RATE OF 108 MILLION VEHICLES THE INCREASE IN SALES OF DOMESTICALLY PRODUCED VEHICLES OVERSTATES THE LEVEL OF CONSUMER BUYING ACROSS THE COUNTRY ECONOMISTS BELIEVE CONSUMERS ARE BUYING MORE CARS THEY NOTE BUT THE INCREASE IN SALES OF NORTH AMERICAN VEHICLES ALSO REFLECTS A SHIFT IN PRODUCTION FROM JAPAN TO THE US FOR THE ENTIRE MONTH OF MAY SALES OF ALL CARS AND TRUCKS INCLUDING IMPORTS ROSE 137 FROM A YEAR AGO TO 13 MILLION VEHICLES THE GAIN IN SALES OF TRUCKS INCLUDING JEEPS MINIVANS AND PICKUPS CONTINUED TO OUTPACE THAT OF CARS TRUCK SALES ROSE 21 FOR THE MONTH WHILE CAR SALES CLIMBED 95 FROM A YEAR EARLIER MODERATE INCOME GROWTH LOW INTEREST RATES AND PENTUP DEMAND ARE PUSHING VEHICLE SALES UP DEALERS AND ANALYSTS SAY BUT BERNARD CAMPBELL AN ECONOMIST AT DRI/MCGRAW HILL SAID THE INCREASE ISN'T AN INDICATOR OF A VIBRANT ECONOMY THE SALES RATES ARE CONSISTENT WITH MEDIOCRE CONDITIONS NOT STRONG ONES MR CAMPBELL SAID BUT THE SALES GAINS WERE ENOUGH TO PUSH UP THE STOCKS OF DETROIT'S BIG THREE AUTO MAKERS WHO ARE GAINING MARKET SHARE AS WELL AS PARTICIPATING IN THE OVERALL RECOVERY DETROIT'S SHARE OF CAR AND TRUCK SALES ROSE TO 76 IN MAY FROM 74 A YEAR AGO DESPITE THE STOCK MARKET'S OVERALL DECLINE GENERAL MOTORS CORP SHARES ROSE 625 CENTS TO 41 IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING FORD MOTOR CO ROSE 2375 TO 55375 AND CHRYLSER CORP WAS UP 1 TO 46375 MORE PEOPLE WANT TO BUY AMERICAN THAN THEY DID BEFORE SAID MIKE KEHOE WHO SELLS FORDS LINCOLNS MERCURYS JEEPS AND EAGLES AT THREE JEFFERSON CITY MO DEALERSHIPS THE QUALITY IS MUCH BETTER THAN IT WAS 10 YEARS AGO AND PEOPLE ARE RECOGNIZING THAT WHILE GM'S SALES ROSE 10 IN MAY ITS GAINS CONTINUED TO LAG BEHIND THOSE OF ITS US RIVALS ITS SHARE OF THE CAR AND TRUCK MARKET DROPPED TO 347 LAST MONTH DOWN FROM 358 A YEAR AGO FOR THE FIRST FIVE MONTHS OF 1993 GM'S CAR SALES HAVE DIPPED SLIGHTLY FROM A YEAR EARLIER REFLECTING BOTH THE LACK OF NEW PRODUCTS AND THE EFFORT TO CUT MONEYLOSING SALES TO RENTAL FLEETS BUT GM'S STRONG TRUCK SALES HAVE PRODUCED AN OVERALL SALES GAIN OF 57 SO FAR THIS YEAR IN AN EFFORT TO ADD SOME SIZZLE TO ITS SALES GM SAID YESTERDAY IT WON'T JOIN IN THE LATEST ROUND OF PRICE INCREASES ANNOUNCED BY ITS DOMESTIC AND JAPANESE RIVALS GM SAID IT WON'T RAISE PRICES UNTIL THE NEW MODEL YEAR BEGINS THIS FALL PRICING RESTRAINT COMPARED WITH ITS COMPETITORS HAS HELPED GM COMPENSATE FOR THE AGE OF SOME PRODUCT LINES IN APRIL THE 12YEAROLD CHEVROLET CAVALIER WAS THE BESTSELLING CAR IN THE US BECAUSE OF GM'S VALUE PRICING STRATEGY BUT FORD'S TAURUS REGAINED THE NO 1 SPOT LAST MONTH FORD INCREASED ITS CAR AND TRUCK MARKET SHARE TO 253 IN MAY UP FROM 242 A YEAR EARLIER FORD SOLD 331795 VEHICLES LAST MONTH UP 192 FROM MAY 1992 ABOUT DOUBLE THE PERCENTAGE INCREASE AT GM CHRYSLER REPORTED STILLGREATER GAINS IN MAY WITH TOTAL SALES OF 204473 VEHICLES UP 295 FROM LAST YEAR THANKS TO ITS POPULAR JEEP GRAND CHEROKEE AND ITS MINIVANS CHRYSLER TRUCK SALES HIT 120848 VEHICLES IN MAY A SINGLEMONTH RECORD FOR THE AUTO MAKER THE INCREASE BOOSTED CHRYSLER'S MARKET SHARE TO 156 UP FROM 137 LAST MAY TOYOTA MOTOR CORP SOLD 99421 VEHICLES LAST MONTH UP 126 FROM MAY 1992 BUT ITS MARKET SHARE DROPPED TO 76 FROM 77 HONDA MOTOR CO SAW SALES OF ITS ACCORD THE BESTSELLING CAR IN THE US FOR THREE STRAIGHT YEARS UNTIL LAST YEAR CONTINUE TO LAG IN MAY HONDA SOLD 28182 ACCORDS DURING THE MONTH DOWN FROM 32759 A YEAR EARLIER HONDA'S OVERALL SALES WERE ALMOST FLAT AT 65510 CARS DOWN FROM 65628 LAST MAY THE COMPANY'S US MARKET SHARE FOR CARS AND TRUCKS COMBINED DROPPED TO 5 FROM 57 FOR THE MONTH HONDA IS AT A DISADVANTAGE BECAUSE IT DOESN'T MAKE TRUCKS ALTHOUGH IT HAS THEM ON THE DRAWING BOARDS NISSAN MOTOR CO WHICH IS ENJOYING A SALES BOOST FROM ITS NEW ALTIMA SEDAN POSTED A 295 INCREASE IN SALES TO 61406 VEHICLES AND A MARKET SHARE INCREASE TO 47 FROM 41 LAST YEAR SALES AT MAZDA MOTOR CO JUMPED 205 TO 30138 VEHICLES FOR THE MONTH MOST OF THE INCREASE CAME FROM MAZDA'S PROTEGE SEDAN WHICH THE AUTO MAKER IS PUSHING WITH 1000 REBATES AND FREE AIR CONDITIONING AS WELL AS INCREASED SALES OF THE MAZDA 626 WHICH WAS JUST BEING ROLLED OUT LAST MAY ALL OF THE JAPANESE CAR COMPANIES HAVE BEEN HURT BY THE RISING VALUE OF THE YEN WHICH HAS PROMPTED THEM TO SHARPLY BOOST PRICES TO MAKE UP FOR DECLINING PROFITS IN THE US THE EUROPEAN AUTO MAKERS WHICH TOGETHER ACCOUNT FOR ONLY 2 OF THE MARKET HAD A MIXED MONTH SALES AT VOLKSWAGEN AG DROPPED 55 TO 3207 VEHICLES DAIMLERBENZ AG'S MERCEDESBENZ UNIT SAW ITS SALES SLIDE 25 FROM LAST YEAR TO 4939 CARS BUT BAYERISCHE MOTOREN WERKE AG SOLD 6473 CARS IN THE US AN INCREASE OF 95 FROM A YEAR AGO HYUNDAI MOTOR CO'S MAY SALES WEREN'T IMMEDIATELY AVAILABLE YESTERDAY 9306040064 930604 COMMODITIES GOLD PRICES RESUME CLIMB GAIN 540 AS FUNDS RENEW BUYING IN AFTERMATH OF PROFITTAKING BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK GOLD FUTURES PRICES RESUMED CLIMBING THE ACTIVE AUGUST CONTRACT GAINED 540 TO 37620 AN OUNCE IN HEAVY TRADING ON NEW YORK'S COMMODITY EXCHANGE TRADERS SAID RENEWED BUYING BY COMMODITY FUNDS OR MANAGED POOLS OF INVESTOR MONEY PROPELLED THE RISE FOLLOWING TWO DAYS OF PROFITTAKING AUGUST GOLD DROPPED 9 ON TUESDAY AND 50 CENTS ON WEDNESDAY AFTER FAILING TO BREAK THROUGH A KEY INTRADAY RESISTANCE LEVEL OF 386 IN EARLY TRADING TUESDAY TRADERS AND DEALERS HAD DESCRIBED TUESDAY'S SHARP FALL AS A TECHNICAL CORRECTION TO OVERBOUGHT MARKET CONDITIONS THURSDAY'S REBOUND WAS IMPRESSIVE BECAUSE IT SHOWED THE MARKET DIDN'T COLLAPSE OVER TUESDAY'S DROP SAID SCOTT MEYERS SENIOR COMMODITY ANALYST WITH REDEL TRADING IN NEW YORK THE DIP DIDN'T VIOLATE ANY KEY SUPPORT LEVELS FROM A TECHNICAL STANDPOINT AND NOW THE MARKET SEEMS POISED TO GO BACK UP AND TEST THE RECENT HIGHS OF 385386 SAID MR MEYERS A TECHNICAL ANALYST TRADERS AND DEALERS IN NEW YORK SAID THE LOCAL MARKET WAS ENCOURAGED BY A FIRMER TONE FOR GOLD IN EARLIER LONDON TRADING AND BY REPORTS THAT ASIAN DEALERS AND MIDDLE EASTERN SYNDICATES APPEAR TO HAVE BEEN ACTIVE PURCHASERS OF GOLD FUTURES ON THE RECENT PRICE DROP THEY ALSO NOTED THAT AN ANNOUNCEMENT BY CANADA'S FINANCE DEPARTMENT THAT THE OTTAWA GOVERNMENT HAD SOLD 348000 OUNCES OF GOLD LAST MONTH FROM OFFICIAL RESERVES FAILED TO FAZE THE MARKET CANADA HAS BEEN A REGULAR SELLER OF GOLD FROM ITS RESERVES THE MORE PRESSING ISSUE FOR THE MARKET TRADERS SAY IS WHETHER ASIAN DEMANDPARTICULARLY FROM CHINA WILL BE SPOOKED BY ANY FURTHER SURGE IN GOLD FUTURES ABOVE 380 AN OUNCE AT THESE PRICE LEVELS BETWEEN 370 AND 380 WE'RE SEEING ORDERS FROM THE FAR EAST DRY UP SAID PHILIP KLAPWIJK A DIRECTOR OF GOLD FIELDS MINERAL SERVICES LTD A LEADING GOLD INDUSTRY RESEARCH GROUP WHOSE MARKET SURVEYS ARE CONSIDERED AUTHORITATIVE CHINA SURPASSED THE US TO BECOME THE WORLD'S LARGEST GOLD CONSUMER LAST YEAR BUYING AT LEAST 350 METRIC TONS ACCORDING TO GOLD FIELDS MINERAL SERVICES IN AN INTERVIEW AT A GOLD MINING CONFERENCE IN NEW YORK MR KLAPWIJK ADDED THE PRICE HAD GOTTEN TOO FAR AWAY FROM FUNDAMENTAL DEMAND FOR PHYSICAL GOLD AND IT'S GOING TO TAKE TIME TO DIGEST NEW PRICE LEVELS AROUND 380 BEFORE A MOVE TOWARD 400 WILL BE SUSTAINABLE AN ACCURATE PICTURE OF TRENDS IN CHINESE DEMAND COULD BE FURTHER COMPLICATED ANALYSTS SAY BY BEIJING'S 22 DEVALUATION OF THE YUAN WEDNESDAY ACCORDING TO RAYMOND CHENG GENERAL MANAGER OF METAL RESOURCES GROUP HONG KONG A LARGE COMMODITY TRADING HOUSE CHINESE IMPORTS OF METALS INCLUDING GOLD WILL DECLINE IN COMING MONTHS MR CHENG SAID THAT BOTH THE IMPOSITION OF TIGHTER CREDIT CONTROLS AND THE YUAN'S DEPRECIATION WHICH MAKES ALL COMMODITY IMPORTS MORE EXPENSIVE IN THE LOCAL CURRENCY WILL DENT DEMAND FOR METALS LONGERTERM HOWEVER CHINESE IMPORTS SHOULD CLIMB STEADILY AS THE HUGE DOMESTIC ECONOMY PICKS UP STEAM HE SAID THE YUAN ALSO KNOWN AS THE RENMIMBI IN CHINA PLUNGED TO THE BLACK MARKET RATE OF 1023 TO THE DOLLAR YESTERDAY FROM EIGHT ON TUESDAY IT HAD BEEN TRADING AROUND SIX YUAN TO THE DOLLAR AT THE BEGINNING OF LAST YEAR HENCE OVER THE PAST 17 MONTHS THE CURRENCY HAS DEPRECIATED AROUND 42 AND HAS HELPED FUEL INFLATION IN CHINA THROUGH HIGHERPRICED IMPORTS OF RAW MATERIALS AND OTHER GOODS THE SURGE IN CHINESE DEMAND FOR GOLD A TRADITIONAL HEDGE AGAINST INFLATION CAN BE PARTIALLY EXPLAINED BY THE PROTRACTED WEAKNESS IN THE YUAN MARKET EXPERTS SAY IMPORTS OF GOLD SURGED IN THE SECOND HALF OF 1992 AND IN THE FIRST QUARTER OF THIS YEAR PARTLY BECAUSE CHINESE COMPANIES WERE BUYING TO HEDGE AGAINST DEVALUATION SAYS TONY WARWICKCHING A CONSULTANT AT COMMODITIES RESEARCH UNIT A LONDON METALS CONSULTING FIRM IN OTHER PRECIOUS METAL ACTIVITY YESTERDAY SILVER FOR JULY DELIVERY JUMPED NINE CENTS TO 4458 AN OUNCE PLATINUM FOR JULY DELIVERY RECOUPED MUCH OF ITS LOSSES EARLIER THIS WEEK BY SURGING 890 TO 39260 WHILE PALLADIUM FOR SEPTEMBER DELIVERY FIRMED 280 TO 12310 IN OTHER COMMODITY MARKETS YESTERDAY ENERGY PETROLEUM FUTURES TUMBLED ACROSS THE BOARD TRADERS CITED TECHNICAL FACTORS FOR A DROP IN CRUDE PRICES ON THE NEW YORK MERCANTILE EXCHANGE JULY CRUDE BROKE THROUGH THE PSYCHOLOGICALLY IMPORTANT LEVEL OF 20 A BARREL TO SETTLE AT 1974 DOWN 29 CENTS FOR THE DAY UNLEADED GASOLINE ALSO PLUNGED IN ACTIVE TRADING PETER BEUTEL ENERGY ANALYST AT BRODY WHITE & CO CITED RECENT HIGH REFINERY OPERATIONS WE HAVE PLENTY OF GASOLINE AROUND HE SAID AFTER REACHING LIFEOFCONTRACT LOWS JULY GASOLINE SETTLED AT 5707 CENTS A GALLON DOWN 126 CENTS COPPER FUTURES PRICES CONTINUED RISING PARTLY ON CONCERN ABOUT POTENTIAL LABOR UNREST AT A MAJOR MINE IN CHILE TRADERS SAID COPPER FOR JULY DELIVERY JUMPED 29 CENTS TO 8430 CENTS A POUND IN ACTIVE TRADING ON NEW YORK'S COMMODITY EXCHANGE OTHER TRADERS SAID COPPER'S FIRMER TONE THIS WEEK REFLECTS A TECHNICALLY DRIVEN INTERMEDIATETERM RALLY THAT HAS NO BASIS IN SUPPLYANDDEMAND FUNDAMENTALS WHICH REMAIN BEARISH THIS IS THE FIRST REAL BOUNCE THAT WE'VE HAD FOR A WHILE THAT LOOKS LIKE IT MAY HOLD SAID RICHARD HIRSCH VICE PRESIDENT AT SHARP'S PIXLEY INC LONDON A COMMODITY BROKERAGE THIS IS A BOTTOMING ACTION ON THE CHARTTHE FIRST ONE WE'VE SEEN SINCE THE LARGE SELLOFF STARTED IN MARCH HE ADDED 9306040063 930604 INTERNATIONAL SIHANOUK UNABLE TO FORM COALITION TO RULE CAMBODIA BY RAPHAEL PURA STAFF REPORTER OF THE WALL STREET JOURNAL PHNOM PENH CAMBODIA ONLY A DAY AFTER ANNOUNCING THAT HE WOULD LEAD A TRANSITIONAL GOVERNMENT PRINCE NORODOM SIHANOUK REVERSED HIMSELF SAYING ON FRIDAY THAT HE WAS UNABLE TO FORM A COALITION THE 72YEAROLD FORMER MONARCH DECLARED THURSDAY THAT HE WOULD LEAD A TRANSITIONAL GOVERNMENT RUN BY CAMBODIA'S TWO BIGGEST POLITICAL FACTIONS THE CAMBODIAN PEOPLE'S PARTY OF INCUMBENT PRIME MINISTER HUN SEN AND FUNCINPEC THE OPPOSITION PARTY THAT WON A PLURALITY IN CAMBODIA'S JUSTCOMPLETED NATIONAL ELECTION IT WASN'T CLEAR WHO WOULD LEAD THE COUNTRY FOLLOWING PRINCE SIHANOUK'S REVERSAL PRINCE SIHANOUK HAD NAMED HIMSELF PRIME MINISTER AND COMMANDERINCHIEF OF THE ARMED FORCES IN THE NEW REGIME THE PRINCE SAID HUN SEN'S STATE OF CAMBODIA REGIME WHICH RULED THE COUNTRY FOR 14 YEARS AFTER BEING PUT IN POWER BY INVADING VIETNAMESE TROOPS HAD BEEN DISSOLVED AND THAT HUN SEN AND FUNCINPEC PRESIDENT PRINCE NORODOM RANARIDDH PRINCE SIHANOUK'S ELDEST SON WOULD BECOME DEPUTY PREMIERS IN THE NEW GOVERNMENT BUT FRIDAY HE BACKED DOWN GIVEN THAT CERTAIN KHMER AND UN FOREIGNERS ARE SAYING THAT THE NEW GOVERNMENT AMOUNTS TO A CONSTITUTIONAL COUP I RENOUNCE FROM FORMING AND PRESIDING OVER THE NATIONAL GOVERNMENT OF CAMBODIA HE SAID PRINCE SIHANOUK LED CAMBODIA FROM ITS INDEPENDENCE IN 1953 UNTIL MARCH 1970 WHEN HE WAS DEPOSED SINCE THEN HE HAS THREADED A TWISTING COURSE THROUGH CAMBODIAN POLITICS INCLUDING TRANSITORY ALIGNMENTS WITH THE COMMUNIST KHMER ROUGE SINCE 1991 THE PRINCE HAD BEEN SERVING AS INTERIM HEAD OF STATE OFFICIALS OF FUNCINPEC SAID THAT PRINCE SIHANOUK REVERSED HIMSELF AFTER PRINCE RANARIDDH REFUSED TO ACCEPT THE NEW REGIME ERIC FALT SPOKESMAN FOR THE UNITED NATIONS TRANSITIONAL AUTHORITY IN CAMBODIA OR UNTAC CAUTIONED WE HAVE NOT YET SEEN A WRITTEN ENDORSEMENT OF THIS INITIATIVE FROM FUNCINPEC SOME UNTAC OFFICIALS WERE DISMAYED BY WHAT THEY SAY WAS A HIJACKING OF THE ELECTION'S POPULAR MANDATE BY PRINCE SIHANOUK AND BY CPP LEADERS BENT ON RETAINING POWER AFTER THEIR ELECTION SETBACK IT'S A POLITICAL PUTSCH AGAINST UNTAC AND THE ELECTORAL PROCESS SAID ONE ANGRY UN OFFICER 9306040062 930604 TECHNOLOGY BRIEF CRAY RESEARCH INC FRENCH RESEARCHERS ORDER A SUPERCOMPUTER SYSTEM CRAY RESEARCH INC EAGAN MINN SAID IT RECEIVED AN ORDER FOR A CRAY C98 SUPERCOMPUTER SYSTEM FROM THE NATIONAL CENTER FOR SCIENTIFIC RESEARCH IN PARIS TERMS WEREN'T DISCLOSED THE NEW EIGHTPROCESSOR SYSTEM UNVEILED EARLIER THIS YEAR HAS A LIST PRICE IN THE US BEGINNING AT 12 MILLION THE SYSTEM WHICH CRAY SAID WILL BE THE MOST POWERFUL SUPERCOMPUTER IN FRANCE IS SCHEDULED TO BE DELIVERED IN THE THIRD QUARTER OF THIS YEAR THE SCIENTIFIC RESEARCH CENTER IS THE FRENCH EQUIVALENT OF THE US NATIONAL SCIENCE FOUNDATION 9306040061 930604 LAW EMPLOYERS FUME OVER NEW LEGISLATION BARRING DISCRIMINATION AGAINST SMOKERS BY JUNDA WOO STAFF REPORTER OF THE WALL STREET JOURNAL LAWS FORBIDDING DISCRIMINATION AGAINST SMOKERS ARE ON THE RISE AND SOME COMPANIES THAT PREFER NONSMOKING EMPLOYEES ARE DOING A SLOW BURN FACED WITH AN ANTISMOKING FERVOR THAT STRETCHES FROM THE CORPORATE OFFICE TO THE OVAL OFFICE THE TOBACCO INDUSTRY HAS TURNED TO STATE LEGISLATURES TO PROTECT THE RIGHT TO SMOKE LARGELY IN THE PAST TWO YEARS 28 STATES AND THE DISTRICT OF COLUMBIA HAVE MADE JOB DISCRIMINATION AGAINST SMOKERS ILLEGAL AND AT LEAST TWO STATES HAVE MADE IT A CIVIL RIGHT FOR WORKERS TO SMOKE OUTSIDE THE WORKPLACE THE INDUSTRY'S PUSH IS CONTINUING LEGISLATION TO PROTECT SMOKERS FROM DISCRIMINATION IS PENDING IN CALIFORNIA DELAWARE MASSACHUSETTS NEBRASKA AND PENNSYLVANIA ACCORDING TO THE TOBACCO INSTITUTE A WASHINGTON TRADE ASSOCIATION THE LAWS DON'T AFFECT OFFICE SMOKING BANS OR SMOKEFREE ZONES IN THE WORKPLACE BUT THEY BAR COMPANIES FROM REFUSING TO HIRE SMOKERS AND FROM FIRING EMPLOYEES WHO FAIL TO KICK THE HABIT THE LEGISLATION COMES IN RESPONSE TO POLICIES MANY COMPANIES HAVE ADOPTED IN RECENT YEARS AGAINST HIRING SMOKERS BECAUSE OF HEALTH AND SAFETY CONCERNS IN WASHINGTON STATE FOR INSTANCE ABOUT 10 OF ALL EMPLOYERS REFUSE TO HIRE SMOKERS ACCORDING TO SMOKENDERS INTERNATIONAL A PHOENIXBASED CONSULTING CONCERN THAT HELPS PEOPLE STOP SMOKING A PROPOSED SMOKERS' RIGHTS LAW IN WASHINGTON WAS DEFEATED EARLIER THIS YEAR SOME OF THE LAWS ALSO PROHIBIT DISCRIMINATION IN COMPENSATION AND BENEFITS ALTHOUGH HIGHER INSURANCE RATES FOR SMOKERS GENERALLY ARE ALLOWED IN MOST OF THE STATES COMPANIES THAT VIOLATE THE LAWS FACE FINES AND CAN BE SUED FOR COMPENSATORY DAMAGES APPARENTLY NONE OF THE LAWS HAS BEEN TESTED IN COURT BY SMOKERS SEEKING PROTECTION A 1991 SMOKERS' RIGHTS LAW IN NEW JERSEY FORCED FORTUNOFF A RETAIL CHAIN BASED IN WESTBURY NY TO DUMP A POLICY PROHIBITING ALL EMPLOYEES FROM SMOKING ON OR OFF THE JOB THE 10YEAROLD POLICY WAS ADOPTED AFTER A WORKER CAUSED A FIRE BY SMOKING IN A STOREROOM FORTUNOFF STOPPED HIRING SMOKERS AND ANYONE CAUGHT SNEAKING A CIGARETTE WAS SENT TO SMOKINGCESSATION PROGRAMS AT COMPANY EXPENSE THERE WERE NO REAL VICTIMS OF THE NONSMOKING POLICY SAYS VICE PRESIDENT LOUIS W FORTUNOFF PEOPLE WHO COULDN'T GET A JOB WITH US THEY GOT A JOB AT MACY'S THEY DIDN'T CARE THE REAL PURPOSE OF THIS LEGISLATION IS TO LEGITIMIZE TOBACCO USE IT WAS PURELY A PLOY BY THE TOBACCO INDUSTRY THE COMPANY NOW PROHIBITS SMOKING INDOORS NO FIRES HAVE BEEN STARTED YET MR FORTUNOFF SAYS BUT HE STILL RESENTS HAVING TO CHANGE THE POLICY SMOKERS ARE LIKELY TO NEED A CIGARETTE DURING THE WORKDAY HE SAYS ADDING WHY TAKE CHANCES IN NEW HAMPSHIRE AND WYOMING LAWMAKERS CHOSE A DIFFERENT TACK THEY DECLARED SMOKING OUTSIDE THE WORKPLACE WHERE LEGAL A CIVIL RIGHT ALTHOUGH SUCH MEASURES MAY SOUND SWEEPING THEY AREN'T LIKELY TO ACTUALLY GIVE SMOKERS ANY BROADER PROTECTIONS THAN THE OTHER ANTIDISCRIMINATION LAWS COVERING SMOKERS SAYS JOHN F BANZHAF III A GEORGE WASHINGTON UNIVERSITY LAW PROFESSOR AND TOBACCOINDUSTRY OPPONENT BUT IT HELPS THE TOBACCO INDUSTRY TO TRY TO EQUATE DISCRIMINATION AGAINST SMOKERS WITH DISCRIMINATION AGAINST BLACKS OR ASIANS OR WOMEN WHICH IS RIDICULOUS MR BANZHAF SAYS THE TOBACCO INSTITUTE SAYS IT DOESN'T SUPPORT MAKING SMOKING A CIVIL RIGHT IT'S DEMEANING TO EXISTING CIVILRIGHTS LEGISLATION TO PUT IT ON A PAR WITH THAT SAYS SPOKESMAN BILL WORDHAM THE INDUSTRY IS A MAJOR CONTRIBUTOR TO STATE AND NATIONAL POLITICAL CAMPAIGNS BECAUSE DISCLOSURE RULES VARY FROM STATE TO STATE AND BECAUSE THE INDUSTRY SIMULTANEOUSLY LOBBIES FOR OTHER LEGISLATION BESIDES THE SMOKERS' RIGHTS LAWS IT IS IMPOSSIBLE TO TELL HOW MUCH WAS SPENT LOBBYING FOR THE LAWS OBVIOUSLY WE WILL WORK TO HELP CONSUMERS OF OUR PRODUCT MR WORDHAM SAYS WE'D BE A PRETTY STRANGE INDUSTRY IF WE DIDN'T IN SOME STATES THE TOBACCO LOBBY IS GETTING A BOOST FROM THE AMERICAN CIVIL LIBERTIES UNION WHICH SAYS OFFTHEJOB ANTISMOKING POLICIES ARE A CORPORATE INTRUSION INTO PRIVATE LIVES THE CIVILLIBERTIES GROUP HELPED WIN LAWS IN EIGHT STATES INCLUDING NEW YORK THAT BROADLY BAR DISCRIMINATION AGAINST EMPLOYEES WHO USE ANY LAWFUL PRODUCT OR WHO ENGAGE IN LAWFUL ACTIVITIES IN THEIR OFF HOURS SUCH LAWS PROTECT NOT ONLY SMOKERS BUT ALCOHOL DRINKERS AND DEVOTEES OF RISKY RECREATIONAL SPORTS SUCH AS MOTORCYCLE RIDING AS LONG AS THE BEHAVIOR DOESN'T AFFECT JOB PERFORMANCE PEOPLE SHOULD BE ALLOWED TO DO IT ON THEIR OWN TIME SAYS LEWIS MALTBY DIRECTOR OF THE ACLU'S WORKPLACERIGHTS OFFICE IN NEW YORK EVEN IN STATES WITHOUT ANTIDISCRIMINATION LAWS THAT ADDRESS SMOKING SMOKERS HAVE GAINED SOME WORKPLACE PROTECTION UNDER THE AMERICANS WITH DISABILITIES ACT OF 1990 THE EXTENT OF A SMOKER'S CLAIMED DISABILITY WOULD DEPEND ON THE STRENGTH OF HIS OR HER ADDICTION SAYS MICHAEL LOTITO MANAGING PARTNER OF THE SAN FRANCISCO OFFICE OF JACKSON LEWIS SCHNITZLER & KRUPMAN A LABOR LAW FIRM REPRESENTING MANAGEMENT THE MOVE TO PROTECT SMOKERS' RIGHTS HOWEVER HAS HAD ITS SETBACKS ACCORDING TO THE TOBACCO INSTITUTE LEGISLATION IN 11 STATES WAS DEFEATED THIS YEAR INCLUDING A BILL VETOED IN MARCH BY VIRGINIA GOV DOUGLAS WILDER GOV WILDER WHOSE STATE IS ONE OF THE NATION'S BIGGEST TOBACCO PRODUCERS SAID HE OPPOSED THE MEASURE BECAUSE IT SUGGESTED THAT SMOKERS DESERVE SAFEGUARDS IDENTICAL TO THOSE USED TO FIGHT RACE AND SEX DISCRIMINATION VIRGINIA ALREADY HAS A NARROWER ANTIDISCRIMINATION LAW THAT PROTECTS PUBLIC EMPLOYEES WHO SMOKE OUTSIDE THE WORKPLACE MANY COMPANIES THAT HAVE ADJUSTED THEIR NOSMOKER POLICIES HAVE DONE SO ONLY GRUDGINGLY CHUCK CRAWFORD PRESIDENT OF KIMBALL PHYSICS INC A WILTON NH ELECTRONICOPTICS COMPANY DEFIANTLY TIGHTENED HIS COMPANY'S ANTISMOKING RULES WHEN THE STATE MADE SMOKING A CIVIL RIGHT IN 1991 HE BELIEVES THE STATE'S LAW CONTRADICTS FEDERAL HEALTH REGULATIONS AND SHOULD BE THROWN OUT MR CRAWFORD SAYS HE OPPOSES CORPORATE INTRUSION INTO EMPLOYEES' LIVES BUT HE WORRIES THAT RESIDUE FROM SMOKERS' CLOTHES AND FROM THEIR BREATH COULD CONTAMINATE ROOMS AT THE COMPANY THAT MUST BE KEPT CLEAN FOR THE MANUFACTURING OF ELECTRONIC OPTICS IN ADDITION SOME EMPLOYEES ARE ALLERGIC TO SMOKE WE CAN SMELL A SMOKER TYPICALLY AT A DISTANCE OF A COUPLE OF FEET MR CRAWFORD SAYS IN POINT OF FACT THEY STINK KIMBALL PHYSICS NO LONGER ASKS POTENTIAL EMPLOYEES WHETHER THEY SMOKE BUT IT HAS STARTED TELLING THEM THAT THEY CAN'T SMOKE ON COMPANY GROUNDS EVEN IN THE PARKING LOT INSIDE THEIR OWN CAR THE SMELL OF SMOKE WOULD LINGER ON THE WORKERS' CLOTHES MR CRAWFORD EXPLAINS EMPLOYEES WHO ARE EXPOSED TO SMOKE AT HOME MUST WASH UP IN COMPANY SHOWERS AND PUT ON CLEAN CLOTHES WHEN THEY ARRIVE AT WORK MR CRAWFORD WHO ONCE PAID AN EMPLOYEE 3000 TO STOP SMOKING SAYS HE DOESN'T KNOW OF ANY CURRENT WORKERS WHO SMOKE I WOULD SPEND EVERY CENT THIS COMPANY HAS TO ATTACK THAT INDUSTRY IF I THOUGHT IT WOULD DO ANY GOOD HE SAYS WE WILL FIGHT TO THE DEATH ON THIS 9306040060 930604 PROGRAM TRADING NEW YORK PROGRAM TRADING FOR THE WEEK ENDED MAY 28 ACCOUNTED FOR 102 OR AN AVERAGE 246 MILLION DAILY SHARES OF NEW YORK STOCK EXCHANGE VOLUME BROKERAGE FIRMS EXECUTED AN ADDITIONAL 55 MILLION DAILY SHARES OF PROGRAM TRADING AWAY FROM THE BIG BOARD MOSTLY ON FOREIGN MARKETS PROGRAM TRADING IS THE SIMULTANEOUS PURCHASE OR SALE OF AT LEAST 15 DIFFERENT STOCKS WITH A TOTAL VALUE OF 1 MILLION OR MORE OF THE PROGRAM TOTAL ON THE BIG BOARD 371 INVOLVED STOCKINDEX ARBITRAGE DOWN FROM 515 THE PRIOR WEEK IN THIS STRATEGY TRADERS DART BETWEEN STOCKS AND STOCKINDEX OPTIONS AND FUTURES TO CAPTURE FLEETING PRICE DIFFERENCES SOME 45 OF PROGRAM TRADING REFLECTED FIRMS' TRADING FOR THEIR OWN ACCOUNTS OR PRINCIPAL TRADING WHILE 478 INVOLVED TRADING FOR CUSTOMERS AN ADDITIONAL 72 WAS EXECUTED BY FIRMS USING PRINCIPAL POSITIONS TO FACILITATE CUSTOMER TRADES OF THE FIVE MOSTACTIVE FIRMS COPPER NEFF AND NOMURA SECURITIES DID ALL OR MOST OF THEIR PROGRAM TRADING FOR THEIR OWN ACCOUNTS WHILE MORGAN STANLEY PAINEWEBBER AND SALOMON BROTHERS DID MOST OF THEIR PROGRAM TRADING FOR CUSTOMERS 9306040059 930604 INTERNATIONAL DANISH JOBLESS RATE CLIMBS COPENHAGEN DENMARK'S UNEMPLOYMENT RATE FOR APRIL ROSE TO 123 OF THE LABOR FORCE OR 343700 PEOPLE THE STATE STATISTICS AGENCY SAID IN MARCH THE FIGURE WAS 12 OR 335800 PEOPLE THE AGENCY SAID THE SEASONALLY CORRECTED FIGURE WAS COMPARED WITH AN 11 UNEMPLOYMENT RATE OR 307800 PEOPLE IN APRIL 1992 9306040058 930604 DENTAL INFORMATION CENTER AGREES TO CORRECT CLAIMS NEW YORK THE NEW YORK STATE ATTORNEY GENERAL'S OFFICE SAID IT REACHED A 25000 SETTLEMENT WITH A DENTAL INFORMATION CENTER THAT HAD CLAIMED EATING CHOCOLATE COULD INHIBIT TOOTH DECAY AS PART OF THE SETTLEMENT THE PRINCETON DENTAL RESOURCE CENTER WHICH WAS FUNDED BY CANDY MAKER MARS INC WILL CORRECT THE CLAIMS IT MADE ABOUT CHOCOLATE AND TOOTH DECAY IN THE NEXT ISSUE OF ITS NEWSLETTER AND CONSPICOUSLY DISCLOSE ITS ASSOCIATION WITH MARS IN FUTURE ISSUES ACCORDING TO THE ATTORNEY GENERAL'S OFFICE MARS GIVES THE CENTER ABOUT 15 MILLION A YEAR 9306040057 930604 LEISURE & ARTS AMERICANS TASTE SUCCESS BY ELLEN CROSBY MOSCOW ALTHOUGH THE SIGN ON THE DOOR SAYS CHEMISTRY LAB INSIDE THE AIR IS FILLED WITH THE SMELL OF HALF A DOZEN ROASTING TURKEYS THAT WILL BE CARVED AND PACKAGED WITH RICE CARROTS CRANBERRY SAUCE AND STUFFING FOR THE DAY'S LUNCH LATER A TRIO OF DRIVERS EACH NAMED IGOR WILL DELIVER 100 MEALS THROUGHOUT MOSCOW TO SUCH CLIENTS AS THE STAFF OF CBS NEWS AND THE AMERICAN WORKERS BUILDING WESTERN HOUSING NEAR MOSCOW UNIVERSITY WELCOME TO MOSCOW CATERING CO ON THE CUTTING EDGE OF THE GRASSROOTS CAPITALISM SWEEPING RUSSIA MCC AS THE STAFF CALLS IT WAS FOUNDED BY LISA DOBBS AND VINCENT SCHODOLSKI TWO ENTERPRISING AMERICANS WHO CAME HERE WITH THEIR JOURNALIST SPOUSES MS DOBBS'S HUSBAND MICHAEL IS MOSCOW BUREAU CHIEF FOR THE WASHINGTON POST AND MR SCHODOLSKI A FORMER MOSCOW SENIOR CORRESPONDENT FOR THE CHICAGO TRIBUNE IS MARRIED TO ELAINE CAREY UNTIL RECENTLY COX NEWSPAPERS MOSCOW BUREAU CHIEF THE COMPANY BEGAN IN MS DOBBS'S KITCHEN FROM WHICH SHE CATERED SMALL RECEPTIONS AND MEALS FOR MOSCOWBASED BUSINESSES THEN A YEAR AGO A FINNISH COMPANY ASKED HER TO CATER A THREEDAY RECEPTION FOR 1000 GUESTS IT WAS AT THIS POINT THAT SHE JOINED FORCES WITH MR SCHODOLSKI A FELLOW COOKING BUFF THE COMPANY FLEW IN THE MAKINGS FOR THE MEAL FROM FINLAND AND MS DOBBS AND MR SCHODOLSKI HIRED 60 RUSSIANS TO FIX CANAPES AND SANDWICHES THERE WERE 10LITER JARS OF CAVIAR EVERYWHERE AND PEOPLE IN EVERY CORNER OF OUR APARTMENTS MR SCHODOLSKI RECALLS WE CAREFULLY CALCULATED THE NUMBER OF CANAPES PER GUEST AND FIGURED OUT HOW MUCH FOOD WE NEEDED HE CONTINUES UNFORTUNATELY WE HADN'T COUNTED ON JUST HOW HUNGRY THE RUSSIAN GUESTS WOULD BE WITHIN MINUTES AFTER THE RECEPTION BEGAN THE FOOD DISAPPEARED NEVERTHELESS THE RECEPTION WAS A SUCCESS AND MS DOBBS AND MR SCHODOLSKI USED THEIR PROFIT TO RENT A MORE SUITABLE LOCATION FOR THEIR BUSINESS THEY WERE ALLOWED TO CONVERT TWO ROOMS AT TECHNICAL SCHOOL NO 41 A VOCATIONAL SCHOOL IN A RAMSHACKLE REDBRICK BUILDING NOT FAR FROM CENTRAL MOSCOW THEY ALSO WORKED OUT A DEAL TO EMPLOY STUDENTS FROM THE SCHOOL AS COOKS EVERYTHING IS RUSSIAN EXCEPT THE FREEZER AND OUR VACUUMPACKING MACHINE MR SCHODOLSKI SAYS THEY WERE TOLD ALL THE EQUIPMENT THEY BOUGHT WAS NEW BUT HAD THEIR DOUBTS AFTER DISCOVERING A STICKER DATED 1968 ON THE BACK OF THE REFRIGERATOR THERE HAVE BEEN MANY INCONVENIENCES ALONG THE WAY THE FIRST TIME MS DOBBS AND MR SCHODOLSKI TURNED ON THE OVEN IT GAVE OFF NOXIOUS FUMES AND PARTIALLY MELTED THE FLUORESCENT LIGHT ON THE CEILING ABOVE IT OCCASIONALLY THE MOVABLE DRAIN UNDER THE SINK FALLS OVER AND FLOODS THE KITCHEN JUST AFTER MS DOBBS SHOWS A REPORTER AROUND THE OVERHEATED SMOKY ROOM WHERE HALF A DOZEN YOUNG RUSSIANS IN WHITE JACKETS ARE FINISHING UP THE TURKEY LUNCHES AN UPROAR ENSUES THE BUILDING'S WATER HAS BEEN TURNED OFF AND THE STAFF IS STUCK WITH A SINKFUL OF DIRTY DISHES BOWLS AND UTENSILS EVERYONE IS WORRIED ABOUT HOW PREPARATIONS FOR THE EVENING'S RECEPTION CAN BEGIN MS DOBBS TAKES THIS CALMLY DISPATCHING SEVERAL STUDENTS WITH LARGE PAILS TO COLLECT WATER FROM ANOTHER BUILDING SUCH INGENUITY IS A REQUIREMENT FOR BUSINESS SUCCESS IN MOSCOW WHERE FINDING FOOD IS A TIMECONSUMING DAILY CHALLENGE EVEN FOR EXPATRIATES ONE OF THE BEST IDEAS MS DOBBS AND MR SCHODOLSKI HAD WAS BORROWED FROM THE MOSCOW MCDONALD'S THEY DECIDED TO GROW SOME OF THEIR OWN FOOD LOCALLY RATHER THAN CONTINUE TO RELY ON EVER MORE EXPENSIVE IMPORTS FROM FINLAND AND DENMARK IN LONDON MS DOBBS BOUGHT SEEDS FOR BROCCOLI FENNEL FRENCH BEANS AND SAVOY CABBAGE THEY FOUND TWO FARMERS ABOUT 75 MILES OUTSIDE OF MOSCOW WHO AGREED TO GROW THE VEGETABLES IN RETURN FOR A CUT OF ANY PROFIT THE AMERICANS WOULD MAKE IN RESELLING A PORTION OF THE PRODUCE THEY NEVER HEARD FROM THE FARMER WHO TOOK THE BEANS AND CABBAGE SEEDS THE OTHER FARMER PLANTED MORE THAN TWO ACRES OF BROCCOLI AND FENNEL THE FENNEL FIZZLED BUT THERE WAS A BUMPER CROP OF BROCCOLI LOCATED IT TURNED OUT IN AN AREA OFFLIMITS TO FOREIGNERS WE HAD TO HIRE A CAR WITH RUSSIAN LICENSE PLATES SO WE COULD SNEAK OUT AND SEE HOW OUR CROP WAS DOING A COUPLE OF TIMES WE GOT STOPPED BY THE MILITIA AND SENT BACK MS DOBBS SAYS FORTUNATELY IT WASN'T LONG BEFORE YELTSIN LIFTED THE TRAVEL RESTRICTIONS THEY SPENT THE SUMMER TRAVELING OUT TO THE FARM FILLING THE TRUNKS OF THEIR CARS WITH BROCCOLI BROCCOLI BECAME A REGULAR ON MCC MENUS AND MS DOBBS AND MR SCHODOLSKI SOLD THE SURPLUS TO THE US EMBASSY CAFETERIA AND SEVERAL LOCAL HARDCURRENCY STORES A YEAR AFTER THEIR FIRST BROCCOLIGROWING FORAY MS DOBBS AND MR SCHODOLSKI EMPLOY ABOUT A DOZEN RUSSIANS INCLUDING THE THREE IGORS WHO MAY HAVE THE TOUGHEST JOB OF ALL IN ADDITION TO DELIVERING THE PREPARED LUNCHES AND RECEPTION FOOD AROUND TOWN THEY MUST SCROUNGE UP ANY NEEDED SUPPLIES WE HAVE ONE IGOR ALWAYS SCOUTING THE CITY TO BUY FOOD OR WHATEVER HE CAN FIND MR SCHODOLSKI SAYS THE OTHER DAY WE SENT HIM TO FIND DISHWASHING POWDER HE CAME BACK WITH DISH TOWELS AND BOOKSHELVES MS CROSBY FORMERLY A MOSCOW CORRESPONDENT FOR ABC RADIO IS A WRITER IN HERNDON VA 9306040056 930604 MARKETING BRIEF PROCTER & GAMBLE CO SCOPE MOUTHWASH PACKAGING TO BE MADE CHILDRESISTANT PROCTER & GAMBLE CO SAID IT WILL MAKE CHILDRESISTANT PACKAGING FOR ITS SCOPE MOUTHWASH AND TAKE OTHER MEASURES TO MAKE THE PRODUCT SAFE FOR CHILDREN P&G CITING CONCERNS ABOUT ACCIDENTAL INGESTION BY CHILDREN SAID IT WILL OFFER CONSUMERS REPLACEMENT BOTTLES WITH A CHILDRESISTANT CLOSURE WHILE THE NEW PACKAGING IS DEVELOPED THE CINCINNATIBASED CONSUMER PRODUCTS COMPANY SAID IT WILL EXPAND CURRENT LABELING INFORMATION TO ENCOURAGE PROPER STORAGE OF THE PRODUCT SCOPE'S EXISTING LABEL CAUTIONS AGAINST USE OF SCOPE BY CHILDREN UNDER AGE SIX THE NEW LABEL WILL ALSO ADVISE ADULTS TO KEEP THE PRODUCT OUT OF THE REACH OF CHILDREN P&G SAID IT WILL DEVELOP A FREE INFORMATIONAL BOOKLET ON THE SAFE USE OF VARIOUS HOUSEHOLD PRODUCTS P&G SAID IT REMAINS COMMITTED TO REDUCING THE ALCOHOL CONTENT OF SCOPE OVER TIME BUT ADDED THAT THE ALCOHOL LEVEL IS ALREADY WELL BELOW THE LEVEL OF OTHER LEADING BRANDS OF MOUTHWASH 9306040055 930604 VANISHING OFFICES TO TRIM THEIR COSTS SOME COMPANIES CUT SPACE FOR EMPLOYEES WORKERS USE CELLULAR PHONES AND LAPTOPS SPENDING MORE TIME WITH CLIENTS LIFE WITHOUT A WATER COOLER BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL LAST YEAR CONNIE PLOURDE AND THE OTHER SALES REPRESENTATIVES AT AMERICAN TELEPHONE & TELEGRAPH CO'S SACRAMENTO CALIF OFFICE LOST THEIR DESKS THEY WERE GIVEN LAPTOP COMPUTERS CELLULAR TELEPHONES AND PORTABLE PRINTERS AND TOLD TO CREATE VIRTUAL OFFICES AT HOME OR AT THEIR CUSTOMERS' OFFICES IT WASN'T AN EASY CHANGE FOR THE EXTROVERTED 19YEAR AT&T VETERAN WHO DELIGHTED IN THE CAMARADERIE OF THE WORKPLACE UNTIL THE REALESTATE PEOPLE CAME IN AND STARTED MOVING OUR CUBICLES OUT WE JUST CONTINUED TO COME IN SHE RECALLS IT WAS A COMFORT ZONE I GUESS SINCE THEN SALESPEOPLE AUDITORS CONSULTANTS AND OTHER SERVICE PROFESSIONALS AT SOME COMPANIES HAVE SEEN THEIR DESKS VANISH AS REENGINEERING SPREADS FROM THE FACTORY FLOOR TO THE OFFICE MUCH LIKE MANUFACTURERS REORGANIZING ASSEMBLY LINES TO MAKE OUTPUT MORE EFFICIENT COMPANIES LIKE INTERNATIONAL BUSINESS MACHINES CORP ERNST & YOUNG ARTHUR ANDERSEN & CO AND DUN & BRADSTREET CORP HAVE BEGUN TAKING AWAY DESKS AND OFFICES TO WRING MORE VALUE OUT OF RENTED SPACE AND TO COMPEL EMPLOYEES TO SPEND MORE TIME WITH CUSTOMERS THE OFFICE ISN'T A PLACE TO COME SIT DOWN AND STARE AT A COMPUTER SCREEN OR TALK ON THE PHONE ALL DAY SAYS DUN & BRADSTREET'S MICHAEL BELL ONE OF A NEW SORT OF CORPORATE REALESTATE MANAGER PUSHING SUCH CHANGES IF YOU WANT TO DO THAT YOU CAN DO IT AT HOME IT IS FAR FROM CLEAR HOWEVER WHETHER CORPORATE DECISION MAKERS WHO CLIMBED THE LADDER AT A TIME WHEN CLOUT WAS MEASURED BY OFFICE SIZE AND LOCATION ARE READY TO EMBRACE WHAT MR BELL HAS DUBBED THE UNREAL ESTATING OF CORPORATE AMERICA THE REALESTATE INDUSTRY HAS A GREAT DEAL RIDING ON WHETHER THEY DO MICHAEL BRILL A BUFFALO NY CONSULTANT WHO WORKED WITH ERNST & YOUNG ON ITS SPACEREDUCTION PROGRAM ESTIMATES THAT AS MANY AS 20 OF THE NATION'S NONCLERICAL OFFICE WORKERS COULD FIND THEMSELVES WITHOUT A PERMANENTLY ASSIGNED DESK THIS INCLUDES SOME EMPLOYEES INVOLVED IN THE RELATED PRACTICE OF TELECOMMUTING WHO WORK PRIMARILY FROM HOME BUT OCCASIONALLY COME INTO THE OFFICE REDUCTIONS OF THAT MAGNITUDE WOULD SIGNIFICANTLY BLUNT THE POTENTIAL FOR THE ECONOMIC RECOVERY TO ABSORB THE NATIONWIDE STOCK OF VACANT OFFICE BUILDINGS A PROCESS THAT IS ALREADY EXPECTED TO LAST SOME 10 YEARS MANY REALESTATE DEVELOPERS AND INSTITUTIONAL LENDERS ARE COUNTING ON SUCH A RECOVERY SKEPTICS ARGUE THAT TAKING AWAY DESKS TO GET EMPLOYEES OUT OF THE OFFICE MORE IS SUITABLE FOR ONLY A LIMITED SLICE OF THE WORK FORCE SUCH AS SALESPEOPLE AND ACCOUNTANTS WHO ARE AWAY FROM THEIR OFFICES FOR DAYS AT A TIME THEY ALSO SAY MIDLEVEL MANAGERS WILL RESIST SUPERVISING SUBORDINATES WHO ARE SELDOM IN SIGHT AND MANY DOUBT THAT THE DESIRE FOR AN OFFICE CAN EVER BE OVERCOME HALL WILLKIE HEAD OF SALES AT BROWN HARRIS STEVENS INC SAYS THE MANHATTAN RESIDENTIAL REALESTATE BROKERAGE FIRM CONSIDERED ADOPTING SUCH A SYSTEM BUT DROPPED THE IDEA OUR BROKERS NEED THAT KIND OF PERSONAL SPACE HE SAYS THEY EXPECT IT THEY DEMAND IT IT'S LIKE THE STAR SYSTEM LIKE MARILYN MONROE THEY NEED THEIR OWN DRESSING ROOMS AS COMPANIES BEGAN CUTTING COSTS IN THE LATE 1980S SOME STARTED SQUEEZING EMPLOYEES INTO SMALLER OFFICES SAYS FRANKLIN BECKER DIRECTOR OF THE INTERNATIONAL FACILITY MANAGEMENT PROGRAM AT CORNELL UNIVERSITY IN ITHACA NY THEN THE TECHNOLOGY ARRIVED TO TAKE IT ANOTHER STEP WORKERS EQUIPPED WITH LAPTOP COMPUTERS AND PORTABLE PHONES COULD QUICKLY SET UP AT ANY EMPTY DESK AT A CLIENT'S OFFICE IN THE CAR OR AT HOME MR BECKER WHO SAYS 30 TO 40 OF DESKS ARE VACANT AT ANY TIME CLAIMS SUCH NONTERRITORIAL USE OF SPACE CAN REDUCE A COMPANY'S REALESTATE REQUIREMENTS BY 25 TO 50 JUNIOR AUDITORS AND MANAGEMENT CONSULTANTS WHO SPENT LITTLE TIME IN THEIR OFFICES HAD BEEN DOUBLING UP AT DESKS FOR YEARS BUT THEIR MANAGERS FELT NEW TECHNOLOGY MADE IT POSSIBLE TO INCREASE THE EMPLOYEETODESK RATIO TO FIVE TO ONE LAST YEAR THE FIRM CONSOLIDATED ITS CHICAGO OPERATIONS FROM 377000 SQUARE FEET IN THREE DIFFERENT BUILDINGS TO 300000 IN THE SEAR'S TOWER TO HOUSE 1400 EMPLOYEES AND INSTITUTED A PROGRAM THEY CALL HOTELING NONE OF THE 500 ACCOUNTING AND MANAGEMENT CONSULTANTS BELOW THE SENIORMANAGER LEVEL WERE GIVEN DESKS INSTEAD THEY WERE TOLD TO TRANSFER THEIR FILES SWEATERS FAMILY PHOTOS AND ANYTHING ELSE SQUIRRELED AWAY IN THEIR DESKS TO OVERSIZED LOCKERS NOW WHEN THEY WANT TO SPEND MORE THAN A HALFDAY AT THE HOME OFFICE BETWEEN AUDITING OR CONSULTING STINTS AT CLIENT FIRMS THEY MUST PHONE THE FIRM'S CONCIERGE WHO WILL RESERVE ONE OF 125 WELLEQUIPPED OFFICES CARRY IN THE APPROPRIATE FILES PROGRAM THEIR PHONE TO RING THROUGH AND HANG THEIR NAMEPLATE ON THE DOOR THE CHICAGO DESIGN WHICH CAN HANDLE MORE EMPLOYEES THAN ARE CURRENTLY IN PLACE IS AIMED AT MEETING A NEW COMPANY TARGET OF 150 SQUARE FEET FOR EACH WORKER DOWN FROM 250 NOW SAYS MR EBERT WHAT IS MORE SEARS TOWER'S 80ASQUAREFOOT ALLOWANCE TO MAKE IMPROVEMENTS COVERED THE COSTS OF THE FIBEROPTICS NETWORK AND THE RECONFIGURATION OF THE LAYOUT ALLOWING THE FIRM TO MORE THAN COVER THE HOTELING'S STARTUP COSTS WITH THE FIRST YEAR'S RENTAL SAVINGS ERNST & YOUNG HAS TARGETED FOR ELIMINATION ONE MILLION OF THE SEVEN MILLION SQUARE FEET IT RENTS NATIONWIDE SAYS MR EBERT AND EXPECTS EVENTUALLY TO TRIM ANOTHER MILLION AT ITS CURRENT AVERAGE ANNUAL RENTAL RATE OF ABOUT 20 A SQUARE FOOT NATIONWIDE THAT COULD CUT EXPENSES BY 40 MILLION A YEAR OTHER COMPANIES SAY THEY ARE MAKING SUCH CHANGES IN THE NAME OF PRODUCTIVITY SALESPEOPLE AUDITORS CONSULTANTS AND OTHER SERVICE PROFESSIONALS EARN MORE FOR THEIR EMPLOYERS BY SPENDING ADDITIONAL TIME WITH CUSTOMERS THAT IS WHY MS PLOURDE OF AT&T WAS SENT INTO THE FIELD SAYS GARY DECKER THE COMPANY'S REALESTATE DIRECTOR HE SAYS 90 OF THE SEVERAL THOUSAND EMPLOYEES USING VIRTUAL OFFICES REPORTED IN INHOUSE SURVEYS THAT THEY HAD INCREASED THEIR SALES TIME IN ADDITION THEIR SPACE NEEDS WERE CUT BY 50 OR MORE SOME COMPANIES NOW ARE TREATING PRIVATE OFFICES AS A CORPORATE PERK THAT MAY HAMPER PRODUCTIVITY IN YEARS PAST EMPLOYEES WHO SPENT MOST OF THEIR TIME AT CLIENTS' OFFICES WOULD DEMAND OR EXPECT FOR STATUS PURPOSES IF NOTHING ELSE A PRIVATE OFFICE SAYS RAYMOND CELLI WHO MANAGES CORPORATE REAL ESTATE FOR ALEXANDER & ALEXANDER SERVICES INC A NEW YORK INSURANCE BROKERAGE FIRM A LOT OF PEOPLE IF THEY GOT MORE COMPLACENT WOULD SPEND A LOT MORE TIME IN THEIR OFFICES RATHER THAN WITH THE CUSTOMERS OR DEVELOPING NEW BUSINESS WITH THE COMPANY CURRENTLY PHASING OUT THE PRIVATE OFFICES OF ABOUT 1000 CLAIMS ADJUSTERS AND LOSSCONTROL SPECIALISTS IT IS BECOMING MORE DIFFICULT FOR SUCH OFFENDERS TO GOOF OFF AT IBM THERE HAS ALSO BEEN A PUSH TO GET PEOPLE OUT OF THE OFFICE THE COMPANY HAS PASSED OUT LAPTOPS AND PORTABLE PHONES TAKEN AWAY DESKS AND GIVEN ORDERS TO ABOUT 5000 EMPLOYEES TO BEGIN WORKING OUTSIDE THE OFFICE IT EXPECTS SPACE NEEDS TO FALL BY 15 TO 20 IN THE PARTICIPATING UNITS IT WOULD HAVE BEEN VERY DIFFICULT TO DO IN THE 1980S SAYS MICHAEL EVANS HEAD OF REAL ESTATE AT ERNST & YOUNG BECAUSE MANY BUSINESSES WERE EXPANDING WE HAD A LABOR SHORTAGE IN ORDER TO ATTRACT PEOPLE WE WENT THE OTHER WAY WE WENT TO LARGER AND PLUSHER OFFICES IT WASN'T EASY TO SELL ERNST & YOUNG EMPLOYEES ON THE CONCEPT IN 1992 EITHER WHEN TOLD THEY WOULD HAVE TO GIVE UP THEIR DESKS PEOPLE WERE JUST UP IN ARMS SAYS AUDITOR PAUL CUITINO WHO HAD TO RELINQUISH A LARGE OFFICE HE SHARED WITH A COLLEAGUE PEOPLE LIKE TO HAVE OWNERSHIP OF A TERRITORY WHERE IF THEY PUT SOMETHING DOWN THEY KNOW WHERE TO PICK IT UP THE NEXT DAY SAYS ROBERT BARRON A PSYCHOLOGIST WHO HEADS THE DEPARTMENT OF MANAGEMENT AT RENSSELAER POLYTECHNIC INSTITUTE IN TROY NY MR BARRON WHO HAS STUDIED WORKPLACE ISSUES FOR 25 YEARS SAYS WORKERS CONSISTENTLY RANK PHYSICAL OFFICE ENVIRONMENT AS AN IMPORTANT COMPONENT OF JOB SATISFACTION THERE'S A LOT OF CULTURAL RESISTANCE TO TAKING OFFICE SPACE AWAY ADMITS MR EBERT WE'RE TRYING TO CHANGE THE THINKING THAT SPACE DOESN'T CORRELATE WITH SUCCESS MR CUITINO SAYS THE GRUMBLING DIED DOWN AFTER PEOPLE GOT USED TO THE SYSTEM WHICH HE SAYS WORKS FOR THE MOST PART WHILE HE MISSES THE CONVENIENCE OF HIS PRIVATE OFFICE HE SAYS THE SYSTEM HAS FORCED HIM TO BE MORE ORGANIZED SPACE HOGS NEVERTHELESS A SMALL GROUP OF ERNST & YOUNG EMPLOYEES HAVE BEEN INGENIOUS IN BEATING THE SYSTEM SAYS MR EBERT INSTEAD OF KEEPING OFFICE RESERVATIONS TO A MINIMUM THEY HAVE BEEN BOOKING FAR MORE TIME THAN NEEDED SO THAT THEY CAN SET UP IN A SINGLE OFFICE AND STAY THERE WE HAVE OUR LIST OF THE 10 BIGGEST HOGS WARNS MR BRILL A CONSULTANT ON THE PROJECT WHO ATTRIBUTES THE PROBLEM TO A HOMING AND NESTING INSTINCT WHEN IBM CONSOLIDATED EMPLOYEES FROM TWO OFFICE TOWERS INTO ONE IN DALLAS IT BEGAN ASSIGNING FOUR MARKETING REPS TO EACH DESK FOR SOME IT WAS A DIFFICULT TRANSITION WITH SALES AGENTS FEELING THAT THEY DIDN'T HAVE A PERMANENT HOME IBM MANAGEMENT ATTEMPTED TO MUTE CRITICISM BY PROMOTING THE PLAN AS A CHOICE BETWEEN GIVING UP SPACE OR JOBS AT AN EAST COAST OFFICE THAT WAS ELIMINATING DESKS THE COMPANY WENT SO FAR AS TO PROVIDE EQUIPMENT FOR EMPLOYEES TO SCAN FAMILY SNAPSHOTS INTO THEIR LAPTOPS PERHAPS THE TRICKIEST PROBLEM FOR COMPANIES TO OVERCOME IS THE DISRUPTION OF FRIENDLY SMALL TALK IN THE OFFICE IF YOU WANT TO MAKE PEOPLE TOTALLY MISERABLE YOU SET UP AN OFFICE WHERE PEOPLE CAN'T FIND FIVE MINUTES TO CHAT WITH THEIR FRIENDS AROUND THE WATER COOLER SAYS MR BARRON THE PSYCHOLOGIST A GROUP OF AT&T ACCOUNT EXECUTIVES IN OHIO SET ABOUT RECTIFYING THIS PROBLEM ON THEIR OWN GETTING TOGETHER EACH WEEK AT SOMEONE'S HOME FOR WHAT THEY CALL VIRTUAL WATER COOLER LIKEWISE SOME IBM EMPLOYEES HAVE TAKEN TO HOLDING POTLUCK DINNERS AND BOWLING NIGHTS AT&T'S MR DECKER AND OTHER REALESTATE MANAGERS SAY MANY PEOPLE QUICKLY TAKE TO THE LESS STRUCTURED ENVIRONMENT OF THE NEW WORKPLACE THEY DON'T HAVE A BOSS WALKING AROUND LOOKING OVER THEIR SHOULDER IN THE OFFICE HE SAYS IF THEY WANT TO GET OUT OF BED AT 10 AM I SUPPOSE THAT'S OK NOT SURPRISINGLY THAT HAS MADE SOME SENIOR EXECUTIVES SKEPTICAL ABOUT LIBERATING THEIR SUBORDINATES FROM THE OFFICE MR CELLI OF ALEXANDER & ALEXANDER SAYS A COMMON COMPLAINT FROM MANAGERS HAS BEEN HOW DO YOU MEASURE PRODUCTION WHAT IF THESE PEOPLE WERE JUST TAKING THE DAY OFF FISHING HEWLETTPACKARD CO THE PALO ALTO CALIF COMPUTER COMPANY FAILED IN ITS ATTEMPT TO TAKE AWAY THE DESKS OF SALES REPRESENTATIVES IN TWO OFFICES IT CITES A LACK OF MANAGEMENT SUPPORT ONCE THE SALES REPRESENTATIVES STARTED SHOWING FRUSTRATION THE MANAGERS SAID LET'S KEEP THE SALES REPS HAPPY WE DON'T WANT THIS TO AFFECT CUSTOMERS' RECALLS DENNIS RAINEY DIRECTOR OF REAL ESTATE KENNETH ROSEN CHAIRMAN OF THE CENTER FOR REAL ESTATE AND URBAN ECONOMICS AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY SAYS THAT AS MORE COMPANIES BEGIN FACING JOBS VS SPACE CHOICES SPACEREDUCTION PROGRAMS WILL SPREAD TO THE POINT OF DEPRESSING THE OFFICE MARKET THE SPACE CONSUMPTION IN THE '90S IS GOING TO BE A LOT SLOWER THAN PEOPLE THINK SO THE RECOVERY IS GOING TO TAKE A LOT LONGER THAN PEOPLE THINK SAYS MR ROSEN WHO PROJECTS SPACE REQUIREMENTS WILL GROW AT 2 A YEAR THIS DECADE COMPARED WITH 45 IN THE 1980S BUT WILLIAM WHEATON DIRECTOR OF MASSACHUSETTS INSTITUTE OF TECHNOLOGY'S CENTER FOR REAL ESTATE DISCOUNTS THE LIKELIHOOD OF LONGTERM STRUCTURAL CHANGE IN OFFICE USE AS COMMERCIAL RENTS CONTINUE TO DECLINE HE PREDICTS THE AMOUNT OF SPACE FOR EACH WHITECOLLAR WORKER WILL RISE NOT FALL WILLIAM AGNELLO EXECUTIVE DIRECTOR OF A REALESTATE ADVISORY ARM OF CB COMMERCIAL REAL ESTATE GROUP INC A LOS ANGELESBASED BROKERAGE FIRM EXPECTS DEBATE OVER THE CONCEPT TO CONTINUE BUT REDUCING OCCUPANCY COSTS HE SAYS IS WHAT EVERYONE AGREES MUST HAPPEN 9306040054 930604 BOOTS' PRETAX PROFIT GREW 19 SALES ROSE 82 IN ITS FISCAL YEAR SPECIAL TO THE WALL STREET JOURNAL LONDON BOOTS CO A BRITISH RETAILER AND DRUG COMPANY SAID PRETAX PROFIT ROSE 19 IN THE FISCAL YEAR ENDED MARCH 31 SIR JAMES BLYTH CHAIRMAN SAID HE HAS NO DOUBT ABOUT THE STRENGTH OF COMPANY PERFORMANCE IN THE CURRENT FINANCIAL YEAR SOME OF OUR BUSINESSES IN DIFFICULT MARKETS HAVE ALREADY TURNED THE CORNER AND SUSTAINED ECONOMIC RECOVERY PRETAX PROFIT ROSE TO 4052 MILLION 624 MILLION FROM 3407 MILLION SALES WERE UP 82 TO 396 BILLION FROM 366 BILLION BOOTS ALSO RAISED ITS DIVIDEND 81 TO 134 PENCE FROM 124 PENCE ITS PRETAX PROFIT WAS IN LINE WITH THE 405 MILLION THAT ANALYSTS HAD BEEN EXPECTING SIMILARLY THE DIVIDEND PAYOUT MATCHED MARKET FORECASTS BOOTS SAID ITS LATEST YEAR AND YEAREARLIER RESULTS HAVE BEEN RESTATED TO COMPLY WITH NEW ACCOUNTING RULES REGARDING GAINS AND LOSSES ON THE SALE OF ASSETS BOOTS SAID IT RECOMMENDED A SECOND INTERIM DIVIDEND OF 88 PENCE A SHARE FOR THE LATEST FINANCIAL YEAR AND SO IS NOT PROPOSING TO PAY A FINAL DIVIDEND BOOTS SAID THAT PROFIT FROM PHARMACEUTICALS FELL TO 1085 MILLION FROM 1208 MILLION A YEAR EARLIER DESPITE A RISE IN SALES TO 7622 MILLION FROM 6992 MILLION THE GROUP SAID THE RESULTS REFLECT THE INVESTMENT IN LAUNCHING MANOPLAX ITS CONGESTIVE HEART FAILURE TREATMENT BOOTS SAID THAT IT PLANS TO CONTINUE ACTIVE DISCUSSIONS WITH THE REGULATORY AUTHORITIES OVER THE NEXT FEW MONTHS AFTER DOCTORS WERE ADVISED TO PRESCRIBE A REDUCED DOSAGE OF MANOPLAX WHICH WAS LAUNCHED IN THE UK IN SEPTEMBER AND IN THE US IN MARCH THE RECOMMENDATION FOLLOWS PRELIMINARY RESULTS OF A LONGTERM STUDY OF THE DRUG INDICATING A DECREASE IN THE SURVIVAL RATE OF PATIENTS PRESCRIBED A DAILY DOSE OF 100MG OF MANOPLAX 9306040053 930604 THOMSON HOLDER SELLS SOME US PROPERTIES TO THOMSON CORP TORONTO IN AN UNUSUAL MOVE PUBLISHING GIANT THOMSON CORP PAID 30 MILLION TO ACQUIRE A PACKAGE OF REAL ESTATE ASSETS FROM A HOLDING COMPANY CONTROLLED BY ITS MAJOR SHAREHOLDER THOMSON SAID IT PURCHASED A PACKAGE OF RESIDENTIAL MASTER PLAN COMMUNITIES IN THE SOUTH AND SOUTHWEST REGIONS OF THE US FROM AN AFFILIATE OF WOODBRIDGE CO A HOLDING COMPANY CONTROLLED BY THE THOMSON FAMILY THE THOMSON FAMILY OWNS 71 OF THOMSON CORP THROUGH WOODBRIDGE WODBRIDGE HAD PURCHASED THE ASSETS JUST YESTERDAY FROM MARKBOROUGH PROPERTIES INC A TORONTO REAL ESTATE FIRM IN WHICH WOODBRIDGE HOLDS AN 83 STAKE NIGEL HARRISON CHIEF FINANCIAL OFFICER OF THOMSON DESCRIBED THE MOVE AS A RELATIVELY MODEST INVESTMENT IN REAL ESTATE UNDER TERMS OF THE TRANSACTION THOMSON HAS FIRST CALL ON CASH FLOWS FROM THE PROPERTIES UNTIL IT HAS RECOVERED ITS INVESTMENT AFTER WHICH IT WILL RECEIVE 25 OF CASH FLOW OVER THE NEXT FIVE YEARS WOODBRIDGE WILL RECEIVE 75 OF THE CASH FLOW TO A MAXIMUM OF 105 MILLION AFTER WHICH THOMSON WILL RETAIN ALL CASH FLOW THOMSON ALSO COULD SEE TAX BENEFITS AS A RESULT OF ANY LOSSES AT THE REAL ESTATE OPERATIONS MR HARRISON SAID THAT THOMSON VIEWS THIS AS A ONEOFF TRANSACTION WE PROBABLY WOULDN'T HAVE SEARCHED OUT THIS KIND OF ACQUISITION HE SAID ADDING THAT THE RELATIONSHIP BETWEEN THOMSON AND MARKBOROUGH MADE THOMSON MORE COMFORTABLE WITH THE TRANSACTION THAN IF IT HAD BEEN BROUGHT TO THE PUBLISHING COMPANY'S ATTENTION BY AN UNRELATED PARTY IN ADDITION TO THE COMMON OWNERSHIP BY WOODBRIDGE AND THE THOMSON FAMILY SOME OF THOMSON'S DIRECTORS ALSO SIT ON MARKBOROUGH'S BOARD THOMSON SAID THE TRANSACTION WAS REVIEWED AND APPROVED BY A COMMITTEE OF INDEPENDENT DIRECTORS 9306040052 930604 THE AMERICAS CENTRAL BANK AUTONOMY MAY GET MEXICO BY SERGIO SARMIENTO MEXICO CITY CENTRAL BANKERS AREN'T KNOWN FOR BEING PARTICULARLY COURAGEOUS BUT ON SEPT 1 1982 MIGUEL MANCERA AGUAYO WHO HAD BEEN APPOINTED HEAD OF THE BANK OF MEXICO JUST THE PREVIOUS MARCH WAS CORNERED AND COMPELLED TO TAKE A STAND IN THE MIDDLE OF THE WORST ECONOMIC CRISIS IN MEXICAN HISTORY PRESIDENT JOSE LOPEZ PORTILLO CONVENED AN EMERGENCY CABINET MEETING AT WHICH HE ANNOUNCED HIS INTENTION TO INTRODUCE TWO DRAMATIC PIECES OF LEGISLATION ONE BILL INITIATING SWEEPING FOREIGN EXCHANGE CONTROLS AND ANOTHER NATIONALIZING THE COUNTRY'S BANKS MR MANCERA REFUSED TO SIGN EITHER MEASURE AND A FURIOUS PRESIDENT LOPEZ PORTILLO FIRED HIM ON THE SPOT THE PATIENT MR MANCERA HAS BEEN METHODICALLY TAKING REVENGE FOR HIS PUBLIC HUMILIATION EVER SINCE HE WAS REAPPOINTED HEAD OF THE BANK OF MEXICO JUST THREE MONTHS AFTER HE WAS DISCHARGED ON THE VERY DAY MR LOPEZ PORTILLO LEFT THE PRESIDENCY FROM THAT POSITION HE HAS SINCE PRESIDED OVER A GRADUAL DISMANTLING OF THE LOPEZ PORTILLO FINANCIAL SYSTEM THE EXCHANGE CONTROLS WERE LIFTED THE BANK OF MEXICO CEASED TO BE AN OPEN CASH REGISTER FOR THE FINANCE MINISTRY AND BANKS WERE REPRIVATIZED BUT MR MANCERA'S MOST IMPRESSIVE VINDICATION CAME JUST THREE WEEKS AGO WHEN PRESIDENT CARLOS SALINAS DE GORTARI SENT A BILL TO CONGRESS THAT IF APPROVED AS EXPECTED WILL FORMALLY GIVE THE BANK OF MEXICO AUTONOMY VISAVIS THE CENTRAL GOVERNMENT POLITICAL ANALYSTS WHO HAVE TRAINED THEIR SIGHTS ON THE 1994 PRESIDENTIAL RACE SAY THIS LAST MOVE IS AN ATTEMPT BY MR SALINAS TO KEEP PRESENT ECONOMIC POLICIES ON A STEADY COURSE AFTER HE TURNS POWER OVER TO HIS SUCCESSOR HOWEVER THE COUNTRY'S SMALL AND MEDIUMSIZED BUSINESS MEN STRUGGLING TO SURVIVE KILLER INTEREST RATES AND SLUGGISH DEMAND HOPE THIS INITIATIVE REPRESENTS MUCH MORE THAN A CONTINUATION OF THE STATUS QUO THEY PRAY THAT GUARANTEEING THE CENTRAL BANK'S INDEPENDENCE IS AN INDICATION THAT THE COUNTRY IS ONCE AGAIN GETTING POISED FOR GROWTH TOGETHER WITH CHILE MEXICO HAS BEEN HELD UP AS AN EXAMPLE OF ECONOMIC REFORM IN LATIN AMERICA BOTH COUNTRIES HAVE ELIMINATED HUGE SPENDING DEFICITS PROMOTED PRIVATE INVESTMENT AND LIBERALIZED THEIR FINANCIAL MARKETS STILL CHILE GREW 10 LAST YEAR WHILE MEXICO'S GROWTH WAS A PALTRY 26 IN 1992 AND CONTINUES TO SLOW WHY IS THAT LARGELY BECAUSE SINCE 1992 MEXICO HAS IMPLEMENTED A SERIES OF RESTRICTIVE FINANCIAL POLICIES THESE STRATEGIES INCLUDE THE TRANSFORMATION OF THE GOVERNMENT'S SPENDING DEFICIT INTO A SURPLUS OF 05 OF THE GROSS DOMESTIC PRODUCT LAST YEAR NOT INCLUDING ONETIME REVENUE FROM THE PRIVATIZATION OF GOVERNMENT ASSETS THIS MEANS THAT THE ADMINISTRATION IS TAKING RESOURCES OUT OF THE ECONOMY INSTEAD OF PLOWING THEM BACK INTO IT INTEREST RATES ALSO HAVE BEEN ALLOWED TO RISE TO ONE OF THE HIGHEST REAL LEVELS IN THE WORLD BUSINESSES ARE PRESENTLY PAYING UP TO 32 A YEAR FOR PESODENOMINATED LOANS MORE THAN 20 PERCENTAGE POINTS ABOVE INFLATION MEXICAN OFFICIALS HAVE OFFERED A WIDE ARRAY OF EXPLANATIONS FOR THESE POLICIES AT A TIME WHEN THE COUNTRY'S MAIN TRADE PARTNERS ARE EITHER IN RECESSION OR GROWING VERY SLOWLY THEY CLAIM AN EXCESSIVE ECONOMIC EXPANSION WOULD INCREASE MEXICO'S ALREADY LARGE CURRENT ACCOUNT DEFICIT IT ROSE 100 TO 228 BILLION IN 1992 BRINGING MEXICO'S 10 ANNUAL INFLATION DOWN TO US AND CANADIAN STANDARDS BY THE TIME THE NORTH AMERICAN FREE TRADE AGREEMENT NAFTA IS IMPLEMENTED ALSO HAS BEEN ADVANCED AS AN ARGUMENT FOR SLOW GROWTH MOREOVER THE GOVERNMENT IS CONCERNED ABOUT A POSSIBLE REJECTION OF NAFTA BY THE US CONGRESS AND SO IT KEEPS A HIGH LEVEL OF FOREIGN RESERVES ABOUT 22 BILLION AND THE BUDGET IN SURPLUS IN ORDER TO PROVIDE ROOM FOR MANEUVER IF A CRISIS OF CONFIDENCE EMERGES AS SOME HAVE PREDICTED STILL THE SOCIAL AND ECONOMIC COST OF THESE POLICIES IS TREMENDOUS LARGE CORPORATIONS HAVE SOUGHT COSTLY FINANCING FROM ABROAD IN ORDER TO BYPASS MEXICO'S EXPENSIVE LOAN MARKET AND MAKE ENDS MEET BUT SMALL AND MEDIUMSIZED COMPANIES WHICH ACCOUNT FOR THE LARGEST SHARE OF THE NATION'S JOBS ARE SUFFERING A DEVASTATING CRISIS AFTER BEING HIT BY THE TRIPLE WHAMMY OF A DECLINE IN SALES HIGH INTEREST RATES AND INCREASED COMPETITION STEMMING FROM THE COUNTRY'S NEW OPENNESS TO TRADE ENTIRE INDUSTRIES ARE BEING WIPED OUT SAYS AN OFFICIAL OF COPARMEX AN INDEPENDENT BUSINESS ORGANIZATION WHAT'S WORSE IS THAT THIS PAIN MIGHT BE UNNECESSARY MEXICO'S REMAINING INFLATION IS NOT A CONSEQUENCE OF A BUDGET DEFICIT IT IS CAUSED BY HIGH INTEREST RATES AN INADEQUATE INFRASTRUCTURE WHICH RAISES THE COST OF BRINGING GOODS TO MARKET AN INSUFFICIENT SUPPLY OF GOODS AND SERVICES AND A TAX POLICY THAT MAKES A FEW COMPANIES AND INDIVIDUALS BEAR THE BRUNT OF THE NATION'S TAX BURDEN WHILE DRIVING OTHERS OUT OF THE FORMAL SECTOR TURNING THE GOVERNMENT SURPLUS INTO A BALANCED BUDGET OR EVEN A SMALL DEFICIT THROUGH INFRASTRUCTURE BUILDING AND TRUE FISCAL REFORM WILL NOT PUSH INFLATION UPWARD RATHER IT WILL TEND TO LOWER INFLATION BY EASING THE PRESSURE FROM THE REAL FACTORS BEHIND TODAY'S RISING PRICES WHILE THE LOWERING OF DOMESTIC INTEREST RATES MAY RESULT IN A DECLINE IN FOREIGN HOLDINGS OF FIXEDINCOME BONDS THESE FUNDS ARE LIKELY TO BE CHANNELED DIRECTLY INTO THE MEXICAN STOCK MARKET OR INTO DIRECT INVESTMENTS IN NEW PLANTS AND SERVICE OUTLETS PRODUCTIVE INVESTMENT ONLY AWAITS AN IMPROVEMENT IN THE MARKET'S FUTURE OUTLOOK DELAYING GROWTH ACTION UNTIL NAFTA IS APPROVED IF EVER MIGHT WORK OUT TO BE A HUGE MISTAKE BOTH DOMESTIC AND FOREIGN INVESTORS ALREADY HAVE SHOWN THAT THEY ARE WILLING TO RISK THEIR MONEY IN MEXICO AS LONG AS THERE ARE GOOD PROSPECTS FOR A SIGNIFICANT RETURN ON THEIR CAPITAL IF THESE PROSPECTS ARE PROVIDED BY SOUND FINANCIAL AND ECONOMIC GROWTH POLICIES NAFTA WILL BECOME A MINOR CONCERN FOR INVESTORS WISHING TO TAKE ADVANTAGE OF A RAPIDLY EXPANDING MARKET GRANTING AUTONOMY TO THE BANK OF MEXICO WAS ONE VERY LARGE STEP ON THE ROAD BACK TO REAL GROWTH BY REDUCING EXECUTIVE BRANCH CONTROL OVER THE CENTRAL BANK THE MEXICAN GOVERNMENT HAS MADE IT MORE DIFFICULT FOR ANY FUTURE ADMINISTRATION TO USE THE BANK AS A MONEY PRINTING DEVICE THE EASIEST WAY TO ARTIFICIAL GROWTH BUT THE MOVE WILL ONLY BE FULLY SENSIBLE IF IT IS MADE TO WORK WITHIN AN OVERALL ECONOMIC POLICY DESIGNED FOR GROWTH THIS WOULD BE MR MANCERA'S FINAL VINDICATION AS HE WOULD AT LAST BE CHARGED WITH THE OVERSIGHT OF A SOUND FINANCIAL SYSTEM PROVIDING THE BASE FOR SUSTAINED ECONOMIC GROWTH MR SARMIENTO EDITORINCHIEF OF ENCYCLOPAEDIA BRITANNICA PUBLISHERS INC LATIN AMERICA IS ALSO A FINANCIAL AND POLITICAL NEWSPAPER COLUMNIST AND RADIO COMMENTATOR IN MEXICO 9306040051 930604 BUSINESS BRIEF SAHARA RESORTS SAHARA CASINO PARTNERS PLANS MERGER INTO NEW COMPANY THE BOARD OF SAHARA RESORTS AND THE GENERAL PARTNERS OF SAHARA CASINO PARTNERS LP SAID THEY APPROVED A MERGER OF THE TWO LAS VEGAS COMPANIES INTO A NEW CASINO COMPANY UNDER THE AGREEMENT EACH SHARE OUTSTANDING OF SAHARA RESORTS WILL BE CONVERTED INTO ONE SHARE OF THE NEW COMPANY EACH OF THE 183 MILLION OUTSTANDING LIMITED PARTNERSHIP INTERESTS AND UNITS OF SAHARA CASINO WILL BE CONVERTED INTO 02174 SHARE OF COMMON STOCK OF THE NEW COMPANY AFTER THE MERGER SAHARA RESORTS STOCKHOLDERS WILL HOLD 692 OF THE EQUITY OF THE NEW COMPANY WITH SAHARA CASINO UNITHOLDERS OWNING 308 PAUL W LOWDEN CHAIRMAN OF SAHARA RESORTS HOLDS ABOUT 74 OF SAHARA RESORTS' OUTSTANDING SHARES SAHARA RESORTS OWNS CASINO FACILITIES WHICH ARE OPERATED BY SAHARA CASINO PARTNERS SEPARATELY SAHARA CASINO SAID IT ENTERED INTO A LEASE WITH THE CITY OF PARKVILLE MO FOR PROPERTY TO RUN A RIVERBOAT CASINO ON THE MISSOURI RIVER SAHARA CASINO PLANS TO APPLY FOR A MISSOURI GAMBLING LICENSE ALTHOUGH THE NEWLY FORMED MISSOURI GAMING COMMISSION HAS NOT YET ESTABLISHED A LICENSING PROCESS 9306040050 930604 MEDIA TIME WARNER TCI JOIN TO SET CABLE STANDARD BY MARK ROBICHAUX AND LAURA LANDRO STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK TELECOMMUNICATIONS INC AND TIME WARNER INC THE CABLE TELEVISION INDUSTRY'S BIGGEST PLAYERS JOINED FORCES TO ESTABLISH A CABLE INDUSTRY STANDARD FOR THE ELECTRONIC SUPERHIGHWAY OF THE FUTURE THE TWO COMPANIES WHICH TOGETHER CONTROL MORE THAN 17 MILLION OF THE NATION'S 60 MILLION CABLE SUBSCRIBERS SAID IN A STATEMENT THAT THAT THEY WILL JOINTLY PURSUE DEVELOPMENT OF COMPATIBLE ELECTRONIC HARDWARE AND SOFTWARE FOR HIGHCAPACITY TWOWAY CABLE SYSTEMS THE ANNOUNCEMENT COMES AS CABLE TELECOMMUNICATIONS AND ELECTRONIC COMPANIES ARE MAKING ALLIANCES TO POSITION THEMSELVES IN THE MULTIMEDIA WORLD OF THE NEXT DECADE AND BEYOND AT PRESENT MOST CABLE COMPANIES ARE EMBARKING ON THEIR PLANS THE 500CHANNEL INTERACTIVE CABLE SYSTEM WITHOUT ANY STANDARDIZED EQUIPMENT OR THE ABILITY FOR DIFFERENT CABLE OPERATORS TO INTERCONNECT THEIR SYSTEMS IF TIME WARNER AND TCI CAN ARRIVE AT AN EQUIPMENT AND SOFTWARE STANDARD IT COULD BE AS SIGNIFICANT FOR THE CABLE INDUSTRY AS THE PERSONAL COMPUTER STANDARD AGREED TO IN THE 1980S BY INTERNATIONAL BUSINESS MACHINES CORP INTEL CORP AND MICROSOFT CORP WAS FOR THAT INDUSTRY IN HIGHTECH JARGON TCI AND TIME WARNER WANT TO ESTABLISH AN INDUSTRYWIDE OPEN ARCHITECTURE THAT ALLOWS VARIOUS PIECES OF EQUIPMENT AND SOFTWARE TO TALK THE SAME LANGUAGE THE ANNOUNCEMENT OF THE JOINT VENTURE CAME LATE YESTERDAY AFTER THE CLOSE OF THE STOCK MARKET AND EXECUTIVES OF TIME AND TCI WEREN'T AVAILABLE TO ELABORATE ON IT TIME WARNER AND TCI HAVE A SHARED VISION OF THE FULL SERVICE NETWORK TECHNOLOGY AS THE FOUNDATION FOR THE FUTURE OF INFORMATION ENTERTAINMENT AND TELECOMMUNICATIONS SERVICES SAID JOSEPH J COLLINS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TIME WARNER'S CABLE UNIT IN A JOINT STATEMENT JOHN C MALONE TCI'S CHIEF EXECUTIVE ADDED IN THE STATEMENT BOTH OUR COMPANIES ARE COMMITTED TO TRANSFORMING OUR CABLE SYSTEMS INTO POWERFUL NETWORKS THAT WILL DELIVER A BROAD ARRAY OF SERVICES TO HOMES AND BUSINESSES A TIME WARNER SPOKESWOMAN SAID THE VENTURE WOULD SEEK TO EXPLOIT THE BENEFITS OF INTERACTIVITY SUCH AS LETTING SCHOOLS IN DIFFERENT CABLE FRANCHISES TALK TO EACH OTHER OR SUBSCRIBERS IN DIFFERENT SYSTEMS PLAY GAMES AGAINST EACH OTHER BUT WHILE DETAILS OF THE JOINT VENTURE WERE SCANT SOME INDUSTRY EXECUTIVES SAID SUCH A VENTURE COULD IN THEORY RESULT IN SIGNIFICANT ADVANTAGES FOR THE CABLE INDUSTRY WHICH HISTORICALLY HAS BEEN CHARACTERIZED BY MULTIPLE EQUIPMENT SUPPLIERS WITH INCOMPATIBLE HARDWARE IN THE PAST NO ONE CABLE COMPANY EVEN INDUSTRY LEADER TCI HAS BEEN BIG ENOUGH TO ORDER EQUIPMENT IN ENOUGH VOLUME TO SET AN INDUSTRY STANDARD FRANK BIONDI CHIEF EXECUTIVE OF CABLE CONCERN VIACOM INC SAID THAT THOUGH HE HADN'T SEEN THE ANNOUNCEMENT IF THIS RESULTS IN A COMMON STANDARD FOR EQUIPMENT AND AN OPEN ARCHITECTURE THAT MAKES THE ENTIRE CABLE SYSTEM NETWORKS OF THE FUTURE COMPATIBLE IT'S A SMART THING TIME AND TCI SAID THEY WILL CONSULT WITH SUPPLIERS OF HARDWARE SOFTWARE AND SERVICES ABOUT HOW THE NETWORKS SHOULD BE DESIGNED AND WILL ENCOURAGE ALL VENDORS TO DEVELOP COMPATIBLE PRODUCTS MOREOVER THE TIME WARNERTCI JOINT VENTURE WILL SELECTIVELY INVEST IN SUCH EQUIPMENT ANNOUNCEMENTS OF SUCH INVESTMENTS ARE EXPECTED NEXT WEEK AT THE NATIONAL CABLE TELEVISION ASSOCIATION TRADE SHOW IN SAN FRANCISCO AMONG THE EQUIPMENT THAT THE TWO COMPANIES HAVE TARGETED FOR THE STANDARDSETTING DRIVE ARE TV SETTOP CONVERTERS AND THE COMPUTERIZED SWITCHES THAT DIRECT MOVIES DATA AND CONVERSATIONS THROUGHOUT THE NETWORKS IT ISN'T CLEAR HOW COMPANIES WITH WHICH TCI AND TIME WARNER HAVE ALREADY BEEN DEALING WOULD BE AFFECTED BOTH COMPANIES HAVE ALREADY STRUCK DEALS WITH VARIOUS SUPPLIERS AND HAVE BEEN QUIETLY INVESTING IN COMPANIES THAT MIGHT PROVIDE SOME OF THE FUTURISTIC HARDWARE AND SOFTWARE INDUSTRY EXECUTIVES SAY TCI HAS INVESTED FOR EXAMPLE IN MICROUNITY SYSTEMS ENGINEERING INC SUNNYVALE CALIF A SECRETIVE SILICON VALLEY STARTUP COMPANY THAT IS SAID TO BE WORKING ON WHAT ONE EXECUTIVE DESCRIBES AS A MINIATURIZED CRAY ON A TRAY A REFERENCE TO THE POWERFUL CRAY COMPUTER CORP SUPERCOMPUTER THAT WOULD CONTROL ALL THE INPUT AND OUTPUT FROM A TVTOP CONVERTER MICROUNITY FOUNDER JOHN MOUSSOURIS DECLINED TO COMMENT YESTERDAY SAYING HIS AGREEMENTS WITH INVESTORS PROHIBIT HIM FROM DISCLOSING THEIR IDENTITY AND FROM DISCUSSING HIS COMPANY'S WORK TIME WARNER SAID ANY STANDARDS DEVELOPED BY THE JOINT VENTURE WOULD BE MADE PUBLIC FOR ALL CABLE OPERATORS AND EQUIPMENT SUPPLIERS WITH THE BUYING POWER OF THE NATION'S LARGEST AND MOST AGGRESSIVE CABLE COMPANIES IN THE EFFORT TO SET STANDARDS EQUIPMENT SUPPLIERS ARE LIKELY TO FALL IN LINE BEHIND THE MOVE TIME WARNER AND TCI ALREADY ARE PUSHING AGGRESSIVELY TOWARD THE FUTURE OF INTERACTIVE TELEVISION AND MOVIES ON DEMAND HAVING ANNOUNCED BOLD PLANS TO TEST THE TECHNOLOGY IN THEIR SYSTEMS AND THEY ARE FLUSH WITH CASH TO INVEST IN THE PLANS TIME WARNER FOR EXAMPLE RECENTLY AGREED TO SELL A 25 PARTNERSHIP STAKE IN ITS ENTERTAINMENT AND CABLE OPERATIONS TO U S WEST INC FOR 25 BILLION 1 BILLION OF WHICH IS EARMARKED FOR INVESTMENT IN THE ENTERTAINMENT GIANT'S ELECTRONIC SUPERHIGHWAYS TCI HAS SAID IT IS INVESTING 2 BILLION TO UPGRADE ITS CABLE SYSTEMS INTO SUPERHIGHWAYS THERE HAS BEEN SOME EFFORT UP TO NOW TO ARRIVE AT INDUSTRY STANDARDS VIA CABLELABS A DENVERBASED INDUSTRY CONSORTIUM THAT IS RESEARCHING INDUSTRY STANDARDS WHEN WE MOVE TO THE DIGITAL WORLD WE NO LONGER HAVE THE SAME ANALOG STANDARD BRINGINGING US TOGETHER SAYS RICHARD GREEN PRESIDENT OF CABLELABS WE'RE PLANNING SO WE DON'T HAVE A SITUATION WHERE THINGS CAN'T TALK TO EACH OTHER A WORLD IN WHICH THERE ARE MULTIPLE DE FACTO STANDARDS 9306040049 930604 ECONOMY RETAIL SALES ROSE IN MAY BUT FELL BELOW FORECASTS FEDERATED MAY AND SEARS REPORT STRONG GAINS DISCOUNTERS TAKE HIT BY GREGORY A PATTERSON STAFF REPORTER OF THE WALL STREET JOURNAL RETAIL SALES AT MAJOR STORE CHAINS IMPROVED A BIT IN MAY ALTHOUGH GAINS FOR SEVERAL BIG RETAILERS WERE SMALLER THAN EXPECTED AS CONSUMERS CONTINUE TO WORRY ABOUT THE ECONOMY SLIM INCOME GROWTH COOLER WEATHER AND CONSUMER CONCERNS OVER JOBS AND TAXES HAMPERED RETAIL SALES LAST MONTH ANALYSTS SAID SALES COMPARISONS WITH LAST YEAR ALSO SUFFERED BECAUSE MEMORIAL DAY FELL LATER THIS YEAR PUSHING TWO OF THE BUSIEST SHOPPING DAYS INTO JUNE HOWEVER MERCHANTS BENEFITED FROM PENTUP DEMAND IN THE WAKE OF SLOWER MARCH AND APRIL SALES AND FROM SHOPPERS' TAKING ADVANTAGE OF LOWER INTEREST RATES TO BUY BIGTICKET ITEMS OVERALL SALES IN STORES OPEN FOR AT LEAST A YEAR CLIMBED 37 IN MAY FROM A YEAR EARLIER ACCORDING TO THE SALOMON BROTHERS INC INDEX THAT TRACKS 22 BIG RETAILERS THE MAY RESULTS SLIGHTLY OUTPACED A 26 GAIN IN APRIL BUT ANALYSTS EXPECTED EVEN STRONGER GAINS AND SEVERAL RETAIL STOCKS DROPPED ON THE LATEST RETAIL SALES FIGURES DEPARTMENT STORE CHAINS RECORDED SOME OF THE MOST IMPRESSIVE GAINS WHILE SPECIALTY APPAREL STORES POSTED MODERATE IMPROVEMENT DISCOUNTERS SEEMED TO TAKE THE BIGGEST HIT DURING THE MONTH WITH SEVERAL REPORTING WEAKERTHANEXPECTED RESULTS RETAILERS HAVE KEPT INVENTORIES LEAN AND THEREFORE SHOULDN'T NEED TO RESORT TO DEEP DISCOUNTING ON THEIR SPRING MERCHANDISE ANALYSTS SAID THAT BODES WELL FOR THEIR PROFITS THE CONSUMER IS GOING TO CONTINUE TO BE A DRAG ON THE ECONOMY SAID JEFFREY EDELMAN AN ANALYST WITH CJ LAWRENCE INC HE SAID THE MAY SALES RESULTS WERE A SHADE BELOW HIS EXPECTATIONS FEDERATED DEPARTMENT STORES INC MAY DEPARTMENT STORES CO AND SEARS ROEBUCK & CO ALL POSTED STRONG GAINS FOR THE MONTH FEDERATED WHICH LOGGED A 44 INCREASE IN SAMESTORE SALES SAID SALES BEAT EXPECTATIONS IN VIRTUALLY ALL THE MARKETS IN WHICH IT OPERATES MAY THE NATION'S LARGEST DEPARTMENT STORE OPERATOR REPORTED A 46 INCREASE IN SAMESTORE SALES AND SEARS RECORDED A 59 GAIN SEARS IS BENEFITING FROM ITS STRATEGY OF SELLING MORE CLOTHING AND FROM STRONGER HOME SALES WHICH BOLSTER HARDWARE AND APPLIANCE RECEIPTS JC PENNEY CO REGISTERED A 19 RISE IN COMPARABLESTORE SALES WHICH IT MAINTAINED MET EXPECTATIONS BUT DAYTON HUDSON CORP SAID ITS 11 GAIN IN SAMESTORE SALES WAS LOWER THAN EXPECTED DAYTON HUDSON BASED IN MINNEAPOLIS SAID IT CONTINUES TO SUFFER FROM TOUGH ECONOMIC CONDITIONS IN CALIFORNIA WHERE IT DERIVES ABOUT 40 OF ITS SALES AS A RESULT DAYTON HUDSON OFFICIALS SAID THE COMPANY NOW EXPECTS TO POST A DROP IN EARNINGS FOR ITS SECOND QUARTER ENDING IN JULY DISCOUNTER WALMART STORES INC POSTED A 6 GAIN IN SAMESTORE SALES THAT WOULD BE IMPRESSIVE FOR ANY OTHER RETAILER BUT NOT FOR WALMART THE NATION'S LARGEST RETAILER WHICH TRADITIONALLY RECORDS DOUBLEDIGIT SALES GAINS KMART CORP REPORTED A 11 SALES GAIN RESULTING FROM THE MIX OF A SMALL DROP AT ITS SPECIALTY STORES AND A BIGGER INCREASE AT ITS KMART STORES WHERE THE COMPANY'S EFFORT TO SELL MORE CLOTHING IS MEETING MODERATE SUCCESS GAP INC SAID PRICE DISCOUNTING FUELED ITS 33 GAIN IN SAMESTORE SALES FOR MAY LIMITED INC MEANWHILE POSTED A 2 SALES GAIN ANALYSTS SAID STORES LIKE GAP AND LIMITED SHOULD BENEFIT LATER THIS YEAR FROM CHANGING FASHIONS THAT FEATURE SLIT SKIRTS AND LONGER FULLER SKIRTS ANALYSTS EXPECT THAT RESULTS FOR JUNE WILL BE ONLY MODERATELY BETTER THAN IN MAY CONSUMER CONFIDENCE ISN'T THERE IN GENERAL SAID THOMAS TASHJIAN AN ANALYST WITH FIRST MANHATTAN CO THERE'S NO CATALYST FOR IT 9306040048 930604 PRICE WATERHOUSE FACES RTC INQUIRY OVER S&L BILLING BY ALBERT R KARR STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE RESOLUTION TRUST CORP ASKED ITS INSPECTOR GENERAL TO INVESTIGATE POSSIBLE IRREGULARITIES IN THE BILLING PROCEDURES OF PRICE WATERHOUSE'S 1992 CONTRACT TO MANAGE SOME OF THE ACTIVITIES OF THE FAILED HOMEFED BANK IF ANY IRREGULARITIES ARE UNCOVERED THE RTC COULD TAKE ENFORCEMENT ACTION AGAINST THE ACCOUNTING FIRM SUCH AS BARRING FURTHER CONTRACTS WITH THE SAVINGSANDLOAN CLEANUP AGENCY THE BILLING PROBLEMS HAVE ONLY RECENTLY COME TO LIGHT ROGER ALTMAN DEPUTY TREASURY SECRETARY AND TEMPORARY RTC CHIEF EXECUTIVE OFFICER SAID IN A STATEMENT BUT MR ALTMAN NOTED THAT THE CLINTON ADMINISTRATION CHANGED THE RTC'S CONTRACTING PROGRAM IN APRIL INCLUDING SLOWING ITS PACE BECAUSE OF HOMEFED'S CONTRACTING PROBLEMS AS A RESULT OF BEING PLACED IN AN ACCELERATED ASSETSALES PROGRAM THE SAN DIEGO THRIFT WAS VULNERABLE TO MAJOR WEAKNESSES IN CONTRACTS HE SAID THE REVIEW OF PRICE WATERHOUSE CONTRACTS AT HOMEFED HAS RAISED QUESTIONS OF POSSIBLE OVERCHARGING AND BILLING FOR WORK THAT WASN'T PERFORMED MR ALTMAN SAID LATER IN AN INTERVIEW RTC SPOKESMAN STEPHEN KATSANOS SAID THAT THE INVESTIGATION WILL GO BEYOND ISSUES THAT BECAME PUBLIC EARLIER THIS YEAR WHEN THE INSPECTOR GENERAL REPORTED THAT PRICE WATERHOUSE CHARGED THE THRIFT REGULATOR 67 CENTS A PAGE FOR COPYING MORE THAN 10 MILLION DOCUMENTS IN REVIEWING HOMEFED ASSETS IT WAS ALSO DISCLOSED EARLIER THIS YEAR THAT JOHN ADAIR THE RTC'S INSPECTOR GENERAL LAST FALL WARNED THE AGENCY AS WELL AS THE TREASURY DEPARTMENT AND OTHERS THAT PRICE WATERHOUSE'S BILLING RATES WERE EXCESSIVE AND INCLUDED SIZABLE MARKUPS FOR WORK DONE BY TEMPORARY EMPLOYEES THE RTC SAID THAT QUESTIONS CONCERNING CONTRACTOR FEES FOR HOMEFED WORK PROMPTED IT TO BEGIN A REVIEW IN APRIL OF ALL CONTRACTS INVOLVING THE THRIFT ALONG WITH OTHER BIG RTC CONTRACTS THE REVIEW BEGAN AFTER PRICE WATERHOUSE THE LEAD CONTRACTOR IN MANAGING THE PROCESS FOR SELLING HOMEFED ASSETS CHANGED ITS FEE SYSTEM THE RTC SAID IN FEBRUARY THE RTC SAID THAT IT HAD NEGOTIATED REDUCED FEES WITH PRICE WATERHOUSE FOR HOMEFED SERVICES THAT WOULD SAVE THE RTC 4 MILLION AT THE TIME THE RTC SAID THAT NEW DOCUMENTHANDLING AND OTHER PROCEDURES MANDATED BY THE JUSTICE DEPARTMENT LED TO MAJOR COST INCREASES FOR EXPANDED PRICE WATERHOUSE WORK PRICE WATERHOUSE SAID HOWEVER THAT IT VOLUNTARILY RENEGOTIATED THE RTC CONTRACT AND AGREED TO GIVE A 20 DISCOUNT ON SERVICES BEYOND THOSE ORIGINALLY ENVISIONED FOR THE REVIEW THE COMPANY ALSO INSISTED THAT ITS CHARGES TO COPY HOMEFED DOCUMENTS AVERAGED ONLY BETWEEN FIVE AND EIGHT CENTS A COPY ALSO AT THAT TIME TREASURY SECRETARY LLOYD BENTSEN SENT A LETTER TO ALBERT CASEY WHO WAS THEN CHIEF EXECUTIVE OF THE RTC SAYING THAT MUCH OF THE 100 MILLION IN FEES PAID TO PRICE WATERHOUSE AND OTHER CONTRACTORS ON HOMEFED WORK APPEARED TO BE EXCESSIVE 9306040047 930604 POLITICS & POLICY CLINTON PULLS PLUG ON CHOICE FOR RIGHTS POST GUINIER'S WRITINGS CITED SLOW DECISION ALIENATES MODERATES AND LIBERALS BY JEFFREY H BIRNBAUM AND JOE DAVIDSON STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON FINALLY PULLED THE PLUG ON THE NOMINATION OF LANI GUINIER TO BE HIS TOP CIVILRIGHTS OFFICIAL BUT HIS HANDLING OF THE CONTROVERSY MANAGED TO ALIENATE ALMOST EVERYONE FROM THE MODERATES HE WANTS TO WOO TO THE LIBERALS WHO FORM PART OF HIS CORE CONSTITUENCY FOLLOWING WHAT HE CALLED A PAINFUL MEETING FOR MORE THAN AN HOUR IN THE OVAL OFFICE YESTERDAY EVENING MR CLINTON ANNOUNCED THAT HE WAS WITHDRAWING HER NOMINATION HE SAID THAT AFTER READING MS GUINIER'S WRITINGS ADMITTEDLY FOR THE FIRST TIME JUST YESTERDAY HE COULDN'T SUPPORT SOME OF THEM AND DECIDED TO AVOID WHAT HE EXPECTED TO BE A BLOODY AND DIVISIVE FIGHT IN THE SENATE MS GUINIER HAS BEEN SUBJECT TO A VICIOUS SERIES OF WILLFUL DISTORTIONS OF HER VIEWS ON CIVIL RIGHTS A SOMBER MR CLINTON SAID BUT HE ADDED HAD I READ THEM BEFORE I NOMINATED HER I WOULD NOT HAVE DONE SO IT IS NOT THE FEAR OF DEFEAT THAT HAS PROMPTED THIS DECISION HE ASSERTED IT IS THE CERTAINTY THAT THE BATTLE WOULD BE CARRIED ON A GROUND THAT I COULD NOT DEFEND THE PRESIDENT SPEAKING WITH RISING EMOTION AND IN THE END WITH TEARS IN HIS EYES CONCEDED THAT THE SLOW PACE OF HIS DECISION WAS CAUSED PARTLY BY HIS PERSONAL FRIENDSHIP WITH MS GUINIER AND BY POOR STAFF WORK THAT DEPRIVED HIM OF A FULL UNDERSTANDING OF HER VIEWS INDEED HIS DAMAGING HESITANCE IN DECIDING WHETHER TO BACK HER FULLY OR RETREAT AS HE DID LAST EVENING SHOWED ONCE AGAIN THAT MANAGEMENT IS AT LEAST AS BIG A PROBLEM AT THE WHITE HOUSE AS IDEOLOGY WHITE HOUSE OFFICIALS HAVE BEEN PAINFULLY AWARE FOR WEEKS THAT THE 43YEAROLD LAW PROFESSOR'S APPOINTMENT AS ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS WAS DOOMED FIRST CONSERVATIVE SENATORS WHOM MR CLINTON NEEDS TO PASS HIS TROUBLED DEFICITREDUCTION BILL SAID THEY COULDN'T SUPPORT HER ULTIMATELY MODERATES AND MANY LIBERALS BAILED OUT IN THE MEANTIME MS GUINIER'S SUPPORTERS BEGAN NOT ONLY TO RISE UP BUT TO ORGANIZE BY YESTERDAY WOMEN'S ACTIVISTS CIVIL RIGHTS LEADERS INCLUDING JESSE JACKSON AND THE CONGRESSIONAL BLACK CAUCUS WERE IN FULL REVOLT PRESSING THE PRESIDENT TO PUSH AHEAD WITH THE NOMINATION OR FACE A SERIOUS BACKLASH THE ROAD TO THIS MESS WAS PAVED WITH INDECISION A TRAIT THAT HAS BECOME A TRADEMARK OF THE CLINTON WHITE HOUSE OVER THE LAST THREE DAYS ALONE AIDES ESTIMATE THEY HAVE SPENT MORE THAN 14 HOURS IN MEETINGS ABOUT THE GUINIER SITUATION UNTIL MR CLINTON EMERGED FROM HIS MEETING WITH MS GUINIER LAST EVENING AIDES SAID THEY WEREN'T SURE HOW IT WOULD TURN OUT EARLIER THIS WEEK IT SEEMED THE PRESIDENT HAD BOWED TO LEGISLATIVE REALITY AND DECIDED TO ABANDON MS GUINIER HE SAID AS MUCH DURING AN OVAL OFFICE MEETING WITH TOP ADVISERS WEDNESDAY PRESS ACCOUNTS THAT SHE FAVORED TILTING THE ELECTORAL PROCESS TOWARD BLACKS IN CERTAIN SITUATIONS SURELY WOULD END HER CHANCES OF CONFIRMATION HE CONCLUDED THE WHITE HOUSE'S TOP LOBBYIST HOWARD PASTER WAS EVEN DISPATCHED THAT EVENING TO TELL MS GUINIER THE BAD NEWS MEETING AT THE JUSTICE DEPARTMENT HE TOLD HER THAT THE STATE OF HER NOMINATION WAS PRECARIOUS HE SAID MANY SENATORS WERE TELLING THE WHITE HOUSE SOMETHING THEY WEREN'T ALWAYS WILLING TO TELL THE NOMINEE TO HER FACE THAT THEY COULDN'T VOTE TO CONFIRM HER IN WASHINGTON PARLANCE MR PASTER WAS SAYING THAT THE NOMINATION WAS DEAD AND THAT THE ONLY THING FOR MS GUINIER TO DO WAS WITHDRAW BUT SHE DIDN'T GET THE HINT SHE SAID SHE DIDN'T BELIEVE WHAT MR PASTER A VETERAN LOBBYIST WAS TELLING HER SHE ASSERTED THAT SHE COULD MAKE A CASE FOR HERSELF GIVEN A FULL HEARING SHE ASKED THAT SHE BE ALLOWED TO APPEAR ON ABC'S NIGHTLINE PROGRAM AND THE WHITE HOUSE AFTER FIRST ADVISING AGAINST IT AGREED BY REFUSING TO PULL THE TRIGGER FOR SO LONG MR CLINTON INFLICTED GREAT DAMAGE ON HIMSELF ESPECIALLY AMONG LIBERALS AND CIVIL RIGHTS GROUPS WHO WERE ANGERED AT MR CLINTON'S HALTING SUPPORT OF HIS NOMINEE AFTER MR CLINTON'S ANNOUNCEMENT MR JACKSON SAID HE WAS DEEPLY DISAPPOINTED AND ADDED IF PRESIDENT CLINTON AND SENATE DEMOCRATS HAD STOOD BY LANI AS PRESIDENT BUSH AND THE REPUBLICANS STOOD BY CLARENCE THOMAS SHE WOULD BE CONFIRMED BENJAMIN CHAVIS EXECUTIVE DIRECTOR OF THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE STATED THE PROBLEM IS RACE IT IS A LITMUS TEST FOR AMERICA EARLIER IN THE DAY BLACK CAUCUS CHAIRMAN KWEISI MFUME D MD SAID HE HAD CONTACTED THE WHITE HOUSE TWICE TO URGE IN THE STRONGEST POSSIBLE TERMS THAT MR CLINTON STAND BY HIS NOMINATION HE THREATENED THAT MR CLINTON WOULD LOSE THE SUPPORT OF THE 40MEMBER CAUCUS ON IMPORTANT ISSUES IF HE DROPPED MS GUINIER THE PRESIDENT SAID MS GUINIER WAS SURPRISED BY HIS DECISION AND FRIENDS OF MS GUINIER SAID SHE HAD DECLINED TO APPEAR WITH MR CLINTON AT THE WHITE HOUSE BRIEFING ROOM TO ANNOUNCE THE WITHDRAWAL MR CLINTON'S DECISION TO NOMINATE MS GUINIER IN THE FIRST PLACE HAD LEFT MORECONSERVATIVE DEMOCRATS EQUALLY DISAFFECTED SEN JOHN BREAUX D LA A PIVOTAL MODERATE VOTE SAID MS GUINIER DOES NOT FIT WITH WHAT I WOULD TERM A MAINSTREAM TYPE OF DEMOCRAT THE RIGHT WING ATTACKS BEGAN ON THE VERY DAY THAT MS GUINIER WAS NOMINATED CLINT BOLICK A CONSERVATIVE ACTIVIST SET IN MOTION A SHRILL BUT LOWBUDGET CAMPAIGN THAT HELPED MOLD SENATE OPINION WORKING FROM A WELLAPPOINTED SUITE OF OFFICES ACROSS THE STREET FROM THE JUSTICE DEPARTMENT MR BOLICK WROTE AN OPINION PIECE IN THE WALL STREET JOURNAL THAT GAVE MS GUINIER THE LABEL THAT STUCK QUOTA QUEEN THE CIVIL RIGHTS ESTABLISHMENT ONLY BELATEDLY STEPPED IN TO TRY TO CONVEY A DIFFERENT IMPRESSION THEY HAD BEEN PREOCCUPIED WITH PUSHING THE MOTOR VOTER REGISTRATION BILL THROUGH CONGRESS IN RECENT DAYS HOWEVER LIBERAL ACTIVISTS HAD TIME TO CHANGE GEARS AND GET FULLY ENGAGED IN THE GUINIER FIGHT SETTING UP TELEPHONE BANKS FOR CONTACTING MEMBERS OF CONGRESS AND PUTTING PUBLIC PRESSURE ON THE PRESIDENT THROUGH NEWS CONFERENCES THE CONTROVERSY COMES AT A CRITICAL JUNCTURE FOR MR CLINTON HE IS TRYING TO MOVE TO THE POLITICAL CENTER TO HELP HIS DEFICITREDUCTION PLAN PASS IN THE SENATE DROPPING MS GUINIER WILL CLEARLY PLEASE MODERATES AND CONSERVATIVES SO IMPORTANT TO THAT EFFORT THERE IN HIS OWN DEFENSE MR CLINTON DENIED THAT HIS DECISION TO DROP MS GUINIER WAS POLITICALLY MOTIVATED THIS IS ABOUT MY CENTER NOT THE POLITICAL CENTER HE SAID AT THE SAME TIME THE PRESIDENT WHO IS FALLING IN PUBLIC OPINION POLLS DOES NEED TO KEEP THE SUPPORT OF THAT PORTION OF HIS BASE THAT HAS REMAINED SOLIDLY BEHIND HIM MINORITIES LIBERALS AND WOMEN WITH THAT IN MIND HE CONSULTED WIDELY WITH MINORITY GROUP LEADERS YESTERDAY HE SPOKE TO REP MFUME WASHINGTON LAWYER VERNON JORDAN AND TOP OFFICIALS OF THE NAACP LEGAL DEFENSE FUND HE ADMITTED LAST NIGHT THAT THE PRESSURE TO PRESS AHEAD WITH HER NOMINATION WAS GREATER THAN FROM THOSE WHO OPPOSED HER ONE MAIN REASON FOR MR CLINTON'S ANGUISH WAS HIS FRIENDSHIP WITH MS GUINIER HE AND HILLARY RODHAM CLINTON ATTENDED YALE LAW SCHOOL WITH HER AND MRS CLINTON WAS AT HER 1986 WEDDING SPEAKING OF THE OVAL OFFICE MEETING WITH MS GUINIER THE PRESIDENT SAID IT WAS A VERY PAINFUL THING BETWEEN TWO PEOPLE WHO HAVE LIKED AND ADMIRED EACH OTHER FOR A LONG TIME THEN WITH TEARS WELLING IN HIS EYES HE ADDED THIS WAS ONE OF THE MOST DIFFICULT MEETINGS I'VE HAD IN MY LIFE BUT THE MOST LASTING PAIN FROM THE EPISODE MIGHT REST WITH THE CLINTON ADMINISTRATION ITSELF PUBLIC RELATIONS EXPERTS COUNSEL THAT THE BEST WAY TO MAKE ANY DIFFICULT DECISION AND AVOID A MESSY CRISIS IS TO DECIDE QUICKLY AND WITH FINALITY MR CLINTON DID NEITHER AND IS LIKELY TO FACE THE CONSEQUENCES FROM BOTH ENDS OF THE POLITICAL SPECTRUM HE IS SEEKING TO BRIDGE MICHAEL K FRISBY CONTRIBUTED TO THIS ARTICLE 9306040046 930604 FINANCING BUSINESS AGNICOEAGLE MINES LTD AGNICOEAGLE MINES LTD TORONTO SAID IT PLANS TO MAKE A PUBLIC OFFERING IN THE US AND CANADA OF ABOUT 425 MILLION COMMON SHARES WHICH WOULD RAISE ABOUT US393 MILLION AT THE CURRENT MARKET PRICE THE GOLD MINING COMPANY HAD ABOUT 317 MILLION SHARES OUTSTANDING AS OF MARCH 31 THEY CLOSED YESTERDAY AT 925 UNCHANGED IN NATIONAL OVERTHECOUNTER TRADING AGNICOEAGLE SAID PROCEEDS WILL BE USED FOR GENERAL CORPORATE PURPOSES 9306040045 930604 SIN TAX CREATES JOBS FOR BOOTLEGGERS BY JON NEWTON HIGH TOBACCO TAXES IN CANADA HAVE MADE THE PRICE OF A SMOKE SO EXPENSIVE THAT LAST YEAR ABOUT ONE IN FIVE CIGARETTES WAS SMUGGLED IN LARGELY FROM THE US THEY ALSO COST THE LIFE OF ROSS DIEGO A TORONTO MILKSTORE CLERK HE WAS SHOT IN THE HEAD BY A SAWEDOFF SHOTGUN BEFORE HIS KILLERS RAN INTO THE NIGHT WITH THEIR HAUL 10 CARTONS OF CIGARETTES PRESIDENT CLINTON AND HIS TAX ADVISERS COULD DO WORSE THAN TO PONDER THE CANADIAN EXPERIENCE AS THEY DRAW UP PLANS TO LEVY A SIN TAX ON TOBACCO PRODUCTS THE CONGRESSIONAL BUDGET OFFICE SAYS THAT HIKES IN THE US CIGARETTE TAX FROM 24 CENTS A PACK TO 48 CENTS WILL BRING IN 18 BILLION OVER FIVE YEARS BUT THEY WILL ALSO CREATE A WHOLE NEW TERRITORY FOR THE MULTINATIONAL CRIMINAL ENTREPRENEURS WHO HAVE HONED THEIR SKILLS ON CANADA'S BOOMING TOBACCO BLACK MARKET THE CANADIAN TOBACCO TAX AROSE IN CIRCUMSTANCES SIMILAR TO THOSE NOW FACING THE CLINTON ADMINISTRATION THE FEDERAL AND PROVINCIAL GOVERNMENTS WERE UNDER RELENTLESS PRESSURE FROM HEALTH LOBBYISTS TO MAKE SMOKING UNATTRACTIVE BUT THEY ALSO BADLY NEEDED TOBACCO TAX REVENUES SO THEY LAUNCHED ANTITOBACCO MEASURES AND DRAMATICALLY INCREASED TOBACCO TAXES IN 1989 TOBACCO ADVERTISING WAS BANNED AND IN 1991 MANUFACTURERS WERE COMPELLED TO ADD WARNING MESSAGES TO CIGARETTES MEANWHILE FEDERAL EXCISE RATES SOARED FROM JUST OVER 17 IN US DOLLARS PER 1000 CIGARETTES TO ALMOST 41 ONE EFFECT OF THIS POLICY WAS TO CREATE BIG PRICE DIFFERENCES BETWEEN US AND CANADIAN TOBACCO PRODUCTS TODAY 200 CANADIANMADE EXPORT CIGARETTES COST AS LITTLE AS 14 IN THE US WHILE IN CANADA THE SAME CARTON COSTS ABOUT 40 TWOTHIRDS OF IT IN TAXES THIS IN TURN HAS SPAWNED A VAST UNDERGROUND TOBACCO INDUSTRY FUNDING A WHOLE RAFT OF CRIMINAL OPERATIONS SUCH AS NARCOTICS AND GUNRUNNING MUCH OF CANADA'S ILLEGAL TOBACCO ENTERS THROUGH A VAST MOHAWK INDIAN RESERVATION THAT STRADDLES QUEBEC ONTARIO AND NEW YORK STATE IT IS HOME TO ABOUT 8000 INDIANS WHO MOVE FREELY BETWEEN THE US AND CANADA ONCE THE CONTRABAND TOBACCO HAS ARRIVED IT IS PEDDLED IN STORES RESTAURANTS AND BARS ACROSS THE COUNTRY BUT SMUGGLING OPERATIONS ARE HARDLY CONFINED TO THIS AREA ALONG CANADA'S EAST COAST FISHERMEN SUPPLEMENT THEIR INCOMES BY OFFLOADING CANADIAN CIGARETTES TO VESSELS WAITING OUTSIDE TERRITORIAL WATERS THESE CIGARETTES EVENTUALLY MAKE THEIR WAY BACK INTO CANADA VIA THE BLACK MARKET ON THE WEST COAST CIGARETTES TURN UP BY SEA AND LAND FROM WASHINGTON AND OREGON IN CENTRAL CANADA PEOPLE NEAR THE MONTANA BORDER BUY TAX AND DUTYFREE CIGARETTES ON US INDIAN RESERVATIONS AND IN CITIES LIKE GREAT FALLS EXPORT SHIPMENTS ARE ESPECIALLY SUSCEPTIBLE MANY CANADIAN CIGARETTES ARE PUT ON BOATS THAT NEVER REACH THEIR SUPPOSED DESTINATIONS FOR EXAMPLE CIGARETTES LEGITIMATELY SHIPPED UP THE ST LAWRENCE RIVER BOUND FOR BOSTON ARE OFTEN UNLOADED ELSEWHERE ON THE US COAST AND TRANSPORTED BY ROAD BACK TO CANADA THE DOCUMENTATION FOR OTHER SHIPMENTS GOES TO ALLEGED BUYERS IN WEST OR WESTCENTRAL AFRICA WHO PROCESS THE DOCUMENTS AS IF THEY'D ACTUALLY RECEIVED THE SHIPMENTS WHEN THE PAPERWORK IS RETURNED EXECUTED THE CIGARETTES ARE SOLD TO CROOKS WHO OFFLOAD THEM IN INTERNATIONAL WATERS AND SELL THEIR SHIPMENTS TO US BUYERS OR BACK TO CANADIANS AND HIJACKINGS GO ON ALL THE TIME IN CORNWALL ONTARIO RECENTLY AN ARMED BANDIT WAYLAID A TRUCK CARRYING CIGARETTES VALUED AT 17 MILLION MANUFACTURERS ARE OF COURSE LOATH TO GO INTO DETAILS ABOUT EXACTLY HOW MANY TOBACCOLADEN TRUCKS LEAVE EACH DAY FROM WHERE AND WITH WHAT FREQUENCY BUT GO THEY DO UNMARKED TRACTORTRAILERS CROSS QUEBEC AND ONTARIO DESTINED MAINLY FOR BUFFALO NY WHERE WHOLESALERS RESELL TO CANADIAN RETAILERS OR TO OTHER WHOLESALERS OVER THE PAST TWO OR THREE YEARS CANADIAN TOBACCO COMPANIES HAVE STEPPED UP THEIR OUTPUTS ALTHOUGH THEY STRENUOUSLY DENY THIS HAS ANYTHING TO DO WITH MEETING THE DEMAND CAUSED BY ILLICIT SALES A RECENT REPORT BY THE CANADIAN TOBACCO MANUFACTURERS' COUNCIL CTMC SAYS THAT IN 1992 ALMOST 10 BILLION CANADIANMADE CIGARETTES WERE EXPORTED A SIGNIFICANT PERCENTAGE OF THEM MADE THEIR WAY BACK TO CANADA IN ILLEGAL SHIPMENTS CANADIAN CIGARETTES AREN'T THE ONLY PROBLEM US BRANDS AND EUROPEAN IMPORTS ARE ALSO SHOWING UP CTMC PRESIDENT ROBERT PARKER SAYS THIS JANUARY ONE OF OUR MEMBERS ARRANGED TO HAVE THE DISCARDED CIGARETTE PACKS PICKED UP AT THE MONTREAL FORUM FOR THREE SUCCESSIVE HOCKEY GAMES WHEN THEY COUNTED THEM 37 WERE SMUGGLED AND 22 OF THOSE WERE NONCANADIAN MANUFACTURED BRANDS WHICH WORKS OUT TO BETWEEN 7 AND 8 OF THE TOTAL THAT COMPARES WITH THE TRADITIONAL 1 PENETRATION OF FOREIGN CIGARETTES INTO CANADIAN MARKETS SO IT'S SOARING MARLBOROS NOT LEGALLY AVAILABLE IN CANADA ARE HOT BLACKMARKET ITEMS ESPECIALLY WITH ASIANS IRONICALLY MARLBOROS PLEASE IS THE TRIGGERPHRASE TO LET CONVENIENCE STORE EMPLOYEES KNOW THAT CUSTOMERS ARE AFTER BLACKMARKET CIGARETTES THE NEAREST CANADA HAS COME TO CURBING THE PROBLEM WAS IN FEBRUARY 1992 WHEN THE FEDERAL GOVERNMENT IMPOSED AN 8 TOBACCO EXPORT TAX HOWEVER IT WAS HASTILY SUSPENDED TWO MONTHS LATER FOLLOWING LOUD AND ANGRY PROTESTS MAINLY FROM TOBACCO PRODUCERS AND MANUFACTURERS ALL IT REALLY DID WAS GIVE SMUGGLERS AN EXCUSE TO JACK UP THEIR PRICES ACCORDING TO THE CTMC THE STREET VALUE OF THE CONTRABAND MARKET WAS ABOUT 103 BILLION IN 1992 WITH CANADIAN TAILORMADE CIGARETTES REPRESENTING 754 AND US BRANDS ACCOUNTING FOR 45 THE BALANCE IS MADE UP OF FINECUT ROLLYOUROWN TOBACCO CANADA ALSO LOST SOME 13 BILLION IN TAX DOLLARS SAYS THE CTMC BUT THE FISCAL COST IS MUCH GREATER THAN THAT IF YOU FIGURE IN THE COSTS OF PAYING POLICE OFFICERS CUSTOMS OFFICIALS PROSECUTORS PUBLICRELATIONS EXPERTS AND OTHER GOVERNMENT PERSONNEL ASSOCIATED WITH MONITORING OR CURBING THE ILLEGAL CIGARETTE TRADE GIVEN CANADA'S TROUBLES ONE WONDERS WHETHER MR CLINTON MIGHT WANT TO RETHINK HIS SIN TAX AND RAISE HIS MONEY SOME OTHER WAY MR NEWTON IS A FREELANCE WRITER LIVING IN TORONTO 9306040044 930604 BUSINESS BRIEF ROCKWELL INTERNATIONAL CORP LACK OF INSTRUCTIONS FOR PART DELAYS LAUNCH OF ENDEAVOR ROCKWELL INTERNATIONAL CORP CONFIRMED THAT THE LAUNCH OF THE SPACE SHUTTLE ENDEAVOR ORIGINALLY PLANNED FOR YESTERDAY WAS SCRAPPED BECAUSE ITS ROCKETDYNE UNIT FAILED TO DOCUMENT OR PROVIDE TECHNICAL INSTRUCTIONS FOR A LIQUID OXYGEN TURBOPUMP THE DECISION TO REMOVE AND REPLACE THE PUMP WAS MADE JOINTLY BY ROCKETDYNE AND THE NATIONAL AERONAUTICS AND SPACE ADMINISTRATION ROCKWELL SAID THE COMPANY SAID THE LAUNCH WILL TAKE PLACE BETWEEN JUNE 17 AND JUNE 20 ROCKETDYNE SEAL BEACH CALIF ALSO SAID NASA JOINED IT IN A THREEWEEK QUALITY REVIEW IN MAY THAT RESULTED IN A NUMBER OF FACTORY OPERATIONS IMPROVEMENTS ROCKETDYNE OFFICIALS CONFIRMED THAT NASA HAD EXPRESSED CONCERNS ABOUT ROCKETDYNE PARTS INCLUDING ENGINE SEALS ON THE SHUTTLE COLUMBIA BEFORE THE REVIEW NASA'S UNCERTAINTY OVER THE SEALS CAUSED A MONTH'S DELAY IN COLUMBIA'S LAUNCH 9306040043 930604 CORPORATE FOCUS SPRINT HANGS BACK AS ITS RIVALS FORGE GLOBAL ALLIANCES LONGDISTANCE CARRIER RISKS LOSING OUT ON HUGE MARKET FOR MULTINATIONALS BY JOHN J KELLER STAFF REPORTER OF THE WALL STREET JOURNAL AS BIG TELECOMMUNICATIONS COMPANIES FORGE GLOBAL ALLIANCES SPRINT CORP CONSPICUOUSLY LACKS A MAJOR PARTNER AND COULD FIND ITSELF LOCKED OUT OF A HUGE NEW MARKET SERVING MULTINATIONAL CORPORATIONS FOR THE LAST COUPLE OF YEARS BIG COMPANIES HAVE BEEN PRESSURING COMMUNICATIONS CARRIERS TO OFFER GLOBAL NETWORK SERVICES THESE CLIENTS WANT TO DEAL WITH ONE CARRIER INSTEAD OF MANY OPERATORS THEY WANT THEIR MONTHLY BILLS IN A SINGLE CURRENCY AND THEY WANT THE ADVANCED VOICE AND DATA TRANSMISSION SERVICES THAT THEY ENJOY IN THE US EXTENDED TO THEIR FOREIGN OFFICES ANALYSTS SAY THIS MULTINATIONAL MARKET FOR VOICE AND DATATRANSMISSION SERVICES TOTALS 10 BILLION A YEAR AND IS GROWING MORE THAN 15 ANNUALLY ALREADY AMERICAN TELEPHONE & TELEGRAPH CO AND MCI COMMUNICATIONS CORP HAVE JOINED WITH INTERNATIONAL PARTNERS TO TAP INTO THE EXPLOSIVE BUSINESS GENERATED FROM THESE CORPORATE DEMANDS BY CONTRAST SPRINT IS NOWHERE SAYS JACK B GRUBMAN TELECOMMUNICATIONS ANALYST AT PAINEWEBBER INC IN THE GLOBAL ARENA AT&T IS ONE BIG GORILLA AND BT BRITISH TELECOMMUNICATIONS PLC IS ANOTHER AND IT WAS CRUCIAL FOR MCI OR SPRINT TO HOOK UP WITH BT NOW THAT MCI'S WITH BT IT ESTABLISHES ONCE AND FOR ALL THAT MCI AND SPRINT ARE IN DIFFERENT LEAGUES BUT SPRINT SAYS THERE'S STILL TIME TO GET INTO THE GAME OUR DEALS HAVEN'T BEEN AS BIG AS AT&T'S AND MCI'S BUT THERE'S STILL A LOT OF FISH IN THE POND SAYS WILLIAM T ESREY SPRINT'S CHAIRMAN THERE'S STILL THE FRENCH AND THE GERMANS AND ITALIANS AVAILABLE TO FORM ALLIANCES HE SAYS BUT IT'S HARD TO SEE HOW SPRINT CAN MATCH AT&T'S AND MCI'S LATEST MOVES AT&T RECENTLY NAMED NUMEROUS PARTNERS IN FOREIGN COUNTRIES INCLUDING JAPAN AND SINGAPORE AND SAID IT WOULD BUILD ITS OWN EUROPEAN NETWORK TO CARRY CORPORATE TRAFFIC WORLDWIDE MCI ANNOUNCED WEDNESDAY A MORE THAN 5 BILLION PLAN TO JOIN FORCES WITH BT UNDER THEIR PACT BT WILL PAY MCI 43 BILLION IN CASH FOR A 20 STAKE IN THE NO2 US CARRIER SPRINT HOWEVER HAS SIGNED ONLY LOWPROFILE AGREEMENTS WITH CABLE & WIRELESS PLC'S MERCURY COMMUNICATIONS IN THE UK AND C&W'S HONG KONG TELECOMMUNICATIONS TO OFFER PRIVATE VOICE AND DATA NETWORKS TO CORPORATIONS OTHER THAN THIS SPRINT HAS LITTLE TO SHOW FOR ITS FORAYS OVERSEAS BEYOND THE USUAL RECIPROCAL AGREEMENTS WITH FOREIGN CARRIERS TO CARRY LONGDISTANCE TRAFFIC BETWEEN COUNTRIES WORSE THE THIRDTIER LONGDISTANCE PLAYERS SUCH AS LDDS COMMUNICATIONS INC ARE BEGINNING TO GNAW AT SPRINT AT THE BOTTOM OF THE MARKET PARTICULARLY AMONG SMALL BUSINESSES WHERE SPRINT HAS BEEN WORKING FEVERISHLY TO FIND NEW BUSINESS AS AT&T AND MCI SKIM OFF THE CREAM CORPORATE ACCOUNTS LDDS WHICH HAS BEEN BUYING UP SMALLER LONGDISTANCE PLAYERS RECENTLY ANNOUNCED A MERGER WITH METROMEDIA COMMUNICATIONS CORP EAST RUTHERFORD NJ AND ATLANTABASED RESURGENS COMMUNICATIONS GROUP INC THE COMBINATION OF THE THREE WILL BE THE NATION'S FOURTHLARGEST CARRIER WITH 15 BILLION IN REVENUE MOREOVER LDDS AND THE OTHER THIRDTIER PLAYERS NOTES MR GRUBMAN HAVE COMBINED REVENUES OF MORE THAN 6 BILLION AND OPERATING PROFIT OF 900 MILLION ALMOST TRIPLE SPRINT'S LONGDISTANCE OPERATING PROFIT THEY'RE GROWING 15 OR THREE TIMES THE INDUSTRY RATE MR GRUBMAN SAYS ESREY HAS A REAL STRATEGIC ISSUE ON HIS HANDS BUT MR ESREY DOESN'T SEE THESE THIRDTIER PLAYERS AS SPRINT'S COMPETITION OUR COMPETITORS ARE AT&T AND MCI HE SAYS EVERYBODY ELSE IS IN A NICHE AND A WHOLE LOT OF THEIR GROWTH COMES FROM COMBINING WITH OTHER PLAYERS NOT BY GROWING THEIR MARKET SHARE MR ESREY SAYS HE WOULD PREFER THAT PEOPLE LOOK AT SPRINT'S STOCK PRICE WHICH HAS GROWN 50 IN THE LAST YEAR THAT'S BECAUSE WE GREW FASTER IN THE LAST HALF OF 1992 THAN AT&T AND MCI HE SAYS BUT YESTERDAY SPRINT INVESTORS WEREN'T HAPPY ABOUT THE ANNOUNCEMENT OF THE MCIBT COMBINATION SPRINT'S STOCK FELL 1 TO CLOSE AT 3125 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING NONETHELESS SPRINT HAS WORKED HARD IN THE LAST TWO YEARS TO REVERSE MOUNTAINOUS LOSSES AND AN UNFOCUSED MARKETING STRATEGY IN THE LAST FEW QUARTERS ITS PROFITS HAVE SOARED THANKS TO COSTCUTTING MOVES AND NEW BUSINESS FROM CONSUMERS AND SMALL BUSINESS AS A RESULT SPRINT'S TRAFFIC GROWTH HAS BEGUN TO CLIMB AGAIN AFTER MORE THAN A YEAR OF ALMOST NO GROWTH IN THE FIRST QUARTER EVIDENCE OF THIS REBOUND WAS REFLECTED IN LONGDISTANCE OPERATING INCOME WHICH INCREASED 81 TO 1207 MILLION FROM 668 MILLION ON A 99 INCREASE IN REVENUE TO 149 BILLION OVERALL SPRINT POSTED A 413 MILLION LOSS MAINLY FROM CHARGES FOR RETIREE HEALTH BENEFITS AND EXPENSES RELATED TO ITS MERGER WITH CENTEL CORP WHICH ADDED LOCAL AND CELLULAR PHONE OPERATIONS TO SPRINT'S OWN LOCAL BUSINESS MR ESREY SAYS SPRINT'S EFFORTS TO EXPAND ITS SERVICES TO SUBSCRIBERS HAVEN'T ENDED WITH THE CENTEL ACQUISITION ANOTHER POSSIBLE COMBINATION MAY BE WITH A CABLETELEVISION COMPANY MR ESREY SAYS SPRINT COULD BENEFIT FROM CABLE AS AN ALTERNATIVE TO LOCAL PHONE COMPANIES CARRYING ITS LONGDISTANCE TRAFFIC TO LOCAL SUBSCRIBERS BETWEEN 40 AND 45 CENTS OF EVERY DOLLAR SPRINT TAKES IN FROM TRANSMITTING LONGDISTANCE PHONE AND DATA TRAFFIC GOES TO LOCAL PHONE COMPANIES FOR CARRYING THOSE SIGNALS THE LAST MILE TO LOCAL SUBSCRIBERS THAT'S WAY TOO HIGH MR ESREY SAYS ADDING THAT CABLE IS DEFINITELY ONE OF THE MEANS WE'RE LOOKING AT OF REACHING THOSE CUSTOMERS THIS WORLD'S CHANGING AND YOU'LL SEE LOTS OF COMBINATIONS MR ESREY SAYS NOBODY DOMINATES THE WORLD NOT EVEN AT&T 9306040042 930604 BUSINESS BRIEF CPC INTERNATIONAL INC JOINT VENTURE ON BOUILLON SET WITH CHINESE INVESTORS CPC INTERNATIONAL INC ENGLEWOOD CLIFFS NJ SAID IT ENTERED INTO A JOINT VENTURE WITH A CHINESE INVESTMENT GROUP TO MANUFACTURE KNORR BRAND CUBE AND GRANULATED BOUILLON IN GUANGZHOU IN SOUTHERN CHINA CPC WILL OWN 80 OF THE NEW BUSINESS CPC GUANGZHOU FOOD PRODUCTS LTD WITH THE REMAINDER OWNED BY YUEXING ENTERPRISE GROUP CO AN INVESTMENT UNIT OF GUANGZHOU BUREAU OF LIGHT INDUSTRY A CITYOWNED CONCERN CPC'S INITIAL INVESTMENT IS 10 MILLION CR SHOEMATE CHAIRMAN AND CHIEF EXECUTIVE SAID OUR EXPECTATION IS THAT CPC WILL EXPAND ITS INTERESTS IN CHINA TO OTHER LOCATIONS AND INTO OTHER CPC PRODUCTS SUCH AS SOUPS SAUCES SALAD AIDS BREAD SPREADS AND DESSERTS BOUILLON IS WIDELY USED IN CHINA FOR SOUPS AND IN PREPARATION FOR NOODLE DISHES AMONG OTHER FOODS 9306040041 930604 MARKETING & MEDIA CANADA TO LET CABLETV CONCERNS RAISE THEIR FEES BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADIAN REGULATORS HAVE AGREED TO LET CABLETELEVISION COMPANIES BOOST THEIR CABLE FEES TO FINANCE PART OF THE NEW DIGITAL TECHNOLOGY THEY WILL NEED TO COMPETE WITH US DIRECT BROADCAST SATELLITE SERVICES THE NEW SYSTEM WILL INVOLVE INSTALLATION IN CABLE SUBSCRIBERS' HOMES OF DIGITAL DECODERS TO ALLOW RECEPTION OF HUNDREDS OF CHANNELS THE SYSTEM WILL ALLOW NEW INTERACTIVE SERVICES SUCH AS BANKING TO BE OFFERED TO CABLE SUBSCRIBERS THE CANADIAN CABLE TELEVISION ASSOCIATION WHICH REPRESENTS 669 CABLETV LICENSEES SAID THE RULING BY THE CANADIAN RADIOTELEVISION AND TELECOMMUNICATIONS COMMISSION CLEARS THE WAY FOR THE INDUSTRY TO LAUNCH A PROGRAM OF INVESTMENTS IN ADVANCED CABLE DISTRIBUTION TECHNOLOGIES CRTC CHAIRMAN KEITH SPICER SAID THAT TO HELP FINANCE THE NEW TECHNOLOGY THE AVERAGE CABLE SUBSCRIBER'S MONTHLY BILL WILL RISE GRADUALLY STARTING WITH AN INCREASE OF ABOUT 30 CANADIAN CENTS 24 US CENTS IN 1996 BY 2001 HE ESTIMATED THE MONTHLY INCREASE AT ABOUT C125 MR SPICER SAID THE NEW REGULATIONS WILL STRENGTHEN THE ABILITY OF CABLE COMPANIES TO COMPETE WITH PLANNED SATELLITETV SERVICES DIRECTV A UNIT OF GENERAL MOTORS CORP'S HUGHES COMMUNICATIONS INC OF EL SEGUNDO CALIF PLANS TO START TRANSMITTING TELEVISION SIGNALS NEXT YEAR TO HOMES EQUIPPED WITH AN 18INCH SATELLITE DISH 9306040040 930604 BUSINESS BRIEF DEBT RATING AGENCIES PLANNING TO CONSIDER UPGRADING MCI DEBT BRITISH TELECOMMUNICATIONS PLC'S PLANNED 43 BILLION INVESTMENT IN MCI COMMUNICATIONS CORP AND ITS POSSIBLE EFFECT ON AMERICAN TELEPHONE & TELEGRAPH CO EVOKED DIFFERENT RESPONSES FROM THE TWO LEADING DEBTRATINGS AGENCIES BOTH HOWEVER SAID THEY WOULD CONSIDER UPGRADING MCI MOODY'S INVESTORS SERVICE INC SAID IT PLACED THE RATINGS OF ABOUT 87 BILLION IN LONGTERM DEBT OF BRITISH TELECOM AND ITS SUPPORTED UNITS UNDER REVIEW FOR POSSIBLE DOWNGRADE IT ALSO EXPANDED ITS CURRENT REVIEW OF 133 BILLION OF AT&T LONGTERM DEBT FOR POSSIBLE DOWNGRADE TO REFLECT THE BRITISH TELECOMMCI DEAL AND ITS POSSIBLE COMPETITIVE EFFECT ON AT&T STANDARD & POOR'S CORP ON THE OTHER HAND AFFIRMED ITS TRIPLEA RATING ON BRITISH TELECOM AND ITS UNITS AND SAID THE COMPANY'S RATINGS OUTLOOK WAS STABLE IT ALSO DIDN'T CHANGE ITS CURRENT REVIEW OF AT&T DEBT FOR POSSIBLE DOWNGRADE MOODY'S SAID THE INCREASED COMPETITION BETWEEN BRITISH TELECOM AND AT&T EXPECTED TO RESULT FROM THE MCI ALLIANCE COULD LEAD TO REDUCED MARGINS AND PRESSURE TO ACCELERATE CAPITAL EXPENDITURES AT BT AND THE PROSPECT OF AT&T FACING INCREASED INTERNATIONAL CALLING COMPETITION ALSO PROMPTED IT TO EXPAND THE AT&T REVIEW MOODY'S SAID S&P SAID ITS AFFIRMATION OF BT'S RATINGS PARTLY REFLECTED EXCESS CASH GENERATED BY ITS DOMESTIC UK TELEPHONE BUSINESS TO PERMIT A NEARTERM RETURN TO A STRONG FINANCIAL PROFILE S&P SAID BRITISH TELECOM HELD ABOUT 2 BILLION IN CASH AND CASH EQUIVALENTS AT THE END OF MARCH BOTH RATINGS AGENCIES PLACED MCI'S DEBT RATINGS UNDER REVIEW FOR POSSIBLE UPGRADE S&P SAID MCI HAS ALREADY INDICATED IT WILL USE THE FIRST 830 MILLION IN PROCEEDS FROM BT TO REDUCE DEBT 9306040039 930604 REVIEW & OUTLOOK EDITORIAL WHO WAS LANI GUINIER AT THIS JUNCTURE ONE MIGHT ALMOST SAY IT IS UNFORTUNATE THAT LANI GUINIER'S NOMINATION WILL NOT BE GOING FORWARD FOR COMFIRMATION BEFORE THE SENATE JUDICIARY COMMITTEE INTENTIONALLY OR NOT THE WHITE HOUSE OPENED THIS PANDORA'S BOX AND THE RESULTING MESS MERITS SOME ATTENTION THERE IS SOMETHING ABOUT THIS MERCURIAL GENERATION WHICH CLAIMS BOTH LANI GUINIER AND BILL CLINTON AS ITS OWN THAT IS FOREVER TELLING US THAT SOMEHOW ITS VIEW AND IDEAS ARE BEING TAKEN OUT OF CONTEXT NO ONE UNDERSTANDS THEM PUBLIC HEARINGS WOULD HAVE HELPED MS GUINIER'S NOMINATION WOULD OF COURSE HAVE BEEN ON CSPAN AND CNN WHICH WOULD HAVE LET THE WHOLE COUNTRY ATTEND WHAT CLEARLY WOULD HAVE BEEN A MUCH NEEDED TUTORIAL ON JUDICIAL AND POLITICAL PHILOSOPHY ASKED WEDNESDAY ABOUT WHAT THE PRESIDENT KNEW ABOUT MS GUINIER'S VIEWS AND WHEN MR STEPHANOPOULOS SAID I THINK HE'S READ SOME SUMMARIES OF HER WRITINGS RECENTLY SINCE THE NOMINATION PERHAPS THE WHITE HOUSE WOULD RELEASE TO THE PUBLIC AND TO THE COMMITTEE COPIES OF THOSE SUMMARIES SO THAT WE ALL CAN NOW KNOW WHAT MR CLINTON HAD BEEN GIVEN TO BELIEVE ABOUT MS GUINIER'S VIEWS THE CONSPIRACY VIEW IS THAT THE WHITE HOUSE OR PART OF IT KNOWS WELL ENOUGH WHAT THE LANI GUINIERS OF THE WORLD STAND FOR AND INTENDS TO PUSH THAT AGENDA AS FAR FORWARD AS IT CAN BEFORE THE WHOLE GAME COLLAPSES THE BENIGN VIEW WE GUESS WOULD BE THAT NO ONE HAD A CLUE BEYOND THE FACT THAT SHE'S A FAMILY FRIEND WHAT ARE WE DEALING WITH HERE FAILED STRATEGIES OR JUST FAILURE WITH A WEEK OR MORE OF GUINIER CONFIRMATION HEARINGS THE COUNTRY WOULD HAVE LEARNED MUCH MORE ABOUT THIS INTRIGUING SCHOOL OF LEGAL THOUGHT CALLED CRITICAL RACE THEORY WHICH SEEMS TO HOLD TO A VERY GRIM VIEW OF THE POSSIBILITY OF SOCIAL PROGRESS IN AMERICA IN THE LATE 20TH CENTURY IT'S SEEMS EVIDENT THAT WITH THE WITHDRAWAL OF MS GUINIER'S NOMINATION THAT MR CLINTON IS INDEED TRYING TO REGAIN THE CENTER THAT HE ESPOUSED DURING THE CAMPAIGN BUT YESTERDAY'S EVENTS MAKE IT CLEAR THAT THE DIVISIONS WITHIN THE DEMOCRATIC PARTY ARE FAR FROM SETTLED THE DEMOCRATIC LEFT HAS A LONG HISTORY OF WHINING THAT ITS IDEAS ARE UNFAIRLY SUPPRESSED AND MAY NOW SEEK RETRIBUTION A FULLER AIRING MIGHT HAVE SETTLED SOME OF THIS IN A MORE CONCLUSIVE WAY FOR NOW MR CLINTON HAS PASSED THROUGH YET ANOTHER MEDIEVAL ORDEAL WE FERVENTLY HOPE THAT IT HAS HELPED HIM SEE MORE CLEARLY WHERE AND WITH WHOM HIS OWN FUTURE LIES 9306040037 930604 BUSINESS BRIEF MERRYGOROUND ENTERPRISES INC FISCAL FIRST QUARTER NET PLUNGED TO 19 MILLION SPECIALTY APPAREL RETAILER MERRYGOROUND ENTERPRISES INC SAID ITS NET INCOME PLUNGED IN THE FISCAL FIRST QUARTER HURT BY A SLUGGISH ECONOMY AND POOR WEATHER AMONG OTHER FACTORS IN THE QUARTER ENDED MAY 1 NET INCOME FELL TO 19 MILLION OR FOUR CENTS A SHARE FROM 71 MILLION OR 13 CENTS A SHARE A YEAR EARLIER IN THE LATEST QUARTER THE COMPANY HAD ONETIME AFTERTAX CHARGES OF 15 MILLION RELATING PRIMARILY TO ACCOUNTING CHANGES SALES IN THE QUARTER ROSE 85 TO 1859 MILLION FROM 1714 MILLION A YEAR AGO SALES AT STORES OPENED AT LEAST A YEAR FELL 5 FROM A YEAR EARLIER ANALYSTS POINTED OUT THAT MERRYGOROUND IS AMONG THE TRENDY FASHION MERCHANTS THAT HAVE BEEN STRUGGLING IN RECENT MONTHS IN PART BECAUSE MANY OF THEIR YOUNG CUSTOMERS NOW PREFER MORE BASIC FASHION APPAREL MERRYGOROUND IS BASED IN JOPPA MD 9306040036 930604 PRUDENTIAL TO PASS SOME SEVERANCE COSTS TO INVESTORS IN ENERGY PARTNERSHIPS BY MICHAEL SICONOLFI STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK INVESTORS IN PRUDENTIAL SECURITIES INC'S 35 ENERGY PARTNERSHIPS WILL BE ASKED TO HELP PAY OFF THE FOLK WHO HELPED THEM LOSE AS MUCH AS 50 CENTS ON THE DOLLAR THE 130000 INVESTORS ARE QUIETLY BEING DOCKED FOR A PORTION OF SEVERANCE PACKAGES FOR EMPLOYEES OF GRAHAM ROYALTY LTD A COVINGTON LA FIRM THAT RUNS THE OIL AND GAS PROPERTIES FOR PRUDENTIAL GRAHAM EMPLOYEES WILL BE GIVEN SEVERANCE PAYMENTS TOTALING 92 MILLION A PORTION OF WHICH WILL BE ALLOCATED TO THE PARTNERSHIPS AS A GENERAL AND ADMINISTRATION EXPENSE ACCORDING TO A FILING GRAHAM MADE WITH THE SECURITIES AND EXCHANGE COMMISSION GRAHAM DECLINED TO COMMENT PRUDENTIAL SECURITIES A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA SAYS IT PLANS TO PAY ABOUT HALF THE SEVERANCE COSTS LEAVING ROUGHLY 45 MILLION TO BE CHARGED AGAINST INVESTORS PRUDENTIAL SAID THE PAYMENTS WON'T GO TO GRAHAM'S SENIOR EXECUTIVES BUT TO THOSE WORKERS WHO AMONG OTHER THINGS TURNED THE SPIGOTS ON THE OIL WELLS STILL THE DISCLOSURE APPEARS TO ADD INSULT TO INJURY FOR PRUDENTIAL'S BELEAGUERED PARTNERSHIP INVESTORS THE INVESTORS HAVE SUED PRUDENTIAL IN A CLASSACTION CASE FILED IN A NEW ORLEANS FEDERAL COURT SAYING THEY LOST ABOUT HALF THE 14 BILLION THEY PUT INTO ENERGY PARTNERSHIPS MARKETED IN THE 1980S BY PRUDENTIAL THE NATION'S FOURTHLARGEST BROKERAGE FIRM THE SEVERANCE PAYMENT IS ONE OF THE MORE OUTRAGEOUS EXAMPLES OF EXCESS SAYS CLINTON KRISLOV OF KRISLOV & ASSOCIATES A CHICAGO LAW FIRM REPRESENTING CLIENTS WITH CLAIMS AGAINST PRUDENTIAL PRUDENTIAL HAD OFFERED TO SETTLE THE CLASSACTION CASE LATE LAST YEAR FOR 37 MILLION IN CASH AND INTERESTS IN THE PARTNERSHIPS IN A REORGANIZED FORM AMID OBJECTIONS FROM PLAINTIFF LAWYERS HOWEVER PRUDENTIAL NOW HAS WITHDRAWN THE SETTLEMENT OFFER IN THE CASE WHILE IT TRIES TO SELL THE ENERGY PARTNERSHIPS IN WHAT APPEARS TO HAVE DEVELOPED INTO A BIDDING WAR LAST MONTH PRUDENTIAL AGREED TO SELL THE 35 PARTNERSHIPS TO PARKER & PARSLEY PETROLEUM CO A MIDLAND TEXAS OIL AND GAS COMPANY FOR 4665 MILLION IN CASH BUT LOUIS DREYFUS NATURAL GAS CORP AN OKLAHOMA CITY TRADING FIRM HAS OFFERED TO BUY THE PARTNERSHIPS FOR ABOUT 510 MILLION AND IS NOW TRYING TO LINE UP FINANCING FOR THE BID LOUIS DREYFUS HAD PLANNED TO COME UP WITH THE FINANCING BY LATE LAST MONTH BUT APPEARS TO BE HAVING TROUBLE RAISING THE CASH THROUGH SEVERAL BANKS PEOPLE FAMILIAR WITH THE MATTER SAID LOUIS DREYFUS DECLINED TO COMMENT IN AN SEC FILING PRUDENTIAL SAID THAT IF IT SELLS TO SOMEONE ELSE IT HAS AGREED TO PAY PARKER & PARSLEY A TOPPING FEE OF 10 MILLION AND AS MUCH AS 5 MILLION MORE IN EXPENSE REIMBURSEMENT PRUDENTIAL HAS AGREED TO BUY GRAHAM ROYALTY FOR ABOUT 8 MILLION AND HAND OVER THE OPERATING RIGHTS TO THE OIL WELLS TO PARKER & PARSLEY PEOPLE FAMILIAR WITH THE MATTER SAID PRUDENTIAL HAS RECOMMENDED THAT INVESTORS ACCEPT THE PARKER & PARSLEY OFFER IF ACCEPTED PARKER & PARSLEY'S CASH TENDER WOULD MEAN THAT INVESTORS IN PRUDENTIAL'S ENERGYINCOME PARTNERSHIPS WOULD EFFECTIVELY RECEIVE 76 CENTS ON THE DOLLAR FOR THEIR ORIGINAL 145 BILLION INVESTMENT THAT INCLUDES ABOUT 655 MILLION THAT PRUDENTIAL SECURITIES ALREADY HAS PAID OUT IN DISTRIBUTIONS TO INVESTORS THE EMPLOYEES AT GRAHAM THE GENERAL PARTNER ALONG WITH PRUDENTIAL SECURITIES ARE EXPECTED TO BE TERMINATED FOLLOWING THE SALE OF THE PARTNERSHIPS IN ADDITION TO A LUMPSUM SEVERANCE PAYMENT CERTAIN ESSENTIAL EMPLOYEES ALSO WILL RECEIVE A RETENTION BONUS WHEN THEY ARE DISMISSED GRAHAM'S FILING SAID BESIDES THE SEVERANCE PAYMENTS INVESTORS ALSO WILL END UP PAYING MORE THAN 1 MILLION TO MERRILL LYNCH & CO PRUDENTIAL'S FINANCIAL ADVISER FOR ARRANGING THE SALE OF THE ENERGY PARTNERSHIPS IN AN SEC FILING PRUDENTIAL SAID ALL OF THE FEES AND EXPENSES OF MERRILL LYNCH WILL BE PAID BY THE PARTNERSHIPS IN A FIVEWEEK AUCTION PROCESS MERRILL HAD CONTACT WITH 49 PROSPECTIVE BUYERS PRUDENTIAL'S SEC FILING SAID SEVEN FIRMS INCLUDING PARKER & PARSLEY AND LOUIS DREYFUS SUBMITTED PROPOSALS TO BUY THE PARTNERSHIP UNITS PRUDENTIAL SAID 9306040035 930604 EXAMES OFFICIALS FIRMS PAY 41 MILLION TO SETTLE HOLDERS' SUIT NEW YORK FORMER EXECUTIVES OF AMES DEPARTMENT STORES INC AND SEVERAL INVESTMENT FIRMS AGREED TO PAY 41 MILLION TO SETTLE A CLASSACTION SUIT IN A FEDERAL COURT HERE CHARGING THE DEFENDANTS WITH VIOLATING SECURITIES LAWS AMES INVESTORS ALLEGED IN THE SUIT THAT THE INVESTMENT BANKING FIRM WERTHEIM SCHRODER & CO WITH AMES EXECUTIVES AND DIRECTORS AND OTHER INVESTMENT FIRMS HAD MADE FALSE AND MISLEADING STATEMENTS THAT ARTIFICIALLY INFLATED THE PRICE OF AMES'S STOCK DEBENTURES AND SENIOR SUBORDINATED NOTES AMES ISSUED THE NOTES AND DEBENTURES IN MAY 1989 TO PAY DEBT FROM ITS PURCHASE OF ZAYRE CORP THE ZAYRE STORES POSTED LOSSES FORCING AMES TO SEEK PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE IN APRIL 1990 AMES EMERGED FROM BANKRUPTCY PROTECTION LAST DECEMBER THE PLAINTIFFS INCLUDED INVESTORS WHO BOUGHT THE DEBENTURES NOTES AND STOCK BETWEEN MAY 1989 AND APRIL 1990 WHEN AMES DISCLOSED THAT IT EXPECTED A 228 MILLION LOSS FOR THE YEAR ENDED JAN 27 1990 UNDER THE AGREEMENT SUBJECT TO APPROVAL BY THE COURT IN JULY AMES INVESTORS WOULD RECEIVE 41 MILLION AND 200000 AMES SERIES B WARRANTS THE DEFENDANTS WOULD ADMIT NO WRONGDOING AMES A ROCKY HILL CONN DEPARTMENT STORE CHAIN WASN'T NAMED AS A DEFENDANT IN 1991 BECAUSE OF ITS BANKRUPTCY STATUS MELVYN I WEISS AN ATTORNEY FOR THE PLAINTIFFS SAID OF THE SETTLEMENT I THINK IT'S A TERRIFIC RECOVERY A SPOKESMAN FOR WERTHEIM SCHRODER DECLINED TO COMMENT ON THE SETTLEMENT AND ATTORNEYS FOR THE AMES EXOFFICIALS COULDN'T BE REACHED AMES FILED A SEPARATE SUIT IN OCTOBER AGAINST WERTHEIM NOW PENDING CHARGING IT PUSHED THE ZAYRE PURCHASE WITH TOO LITTLE SCRUTINY TO GAIN FEES 9306040034 930604 EPIC HEALTHCARE EXTENDS OFFER DALLAS EPIC HEALTHCARE GROUP INC SAID IT EXTENDED UNTIL JUNE 11 ITS OFFER TO BUY ALL ITS 115 MILLION PRINCIPAL AMOUNT OUTSTANDING 15 SENIOR SUBORDINATED NOTES DUE 2001 THE OFFER PART OF EPIC'S DEBT REFINANCING IS PRICED AT 108625 PER 1000 PRINCIPAL AMOUNT THE EMPLOYEEOWNED HOSPITAL COMPANY SAID 747 MILLION PRINCIPAL AMOUNT OF THE NOTES HAVE BEEN TENDERED SO FAR THE INITIAL EXPIRATION DATE WAS MAY 14 9306040033 930604 MARKETING & MEDIA LIBEL JURORS RULE AGAINST MALCOLM DIFFER ON DAMAGES BY KEN YAMADA AND EDWARD FELSENTHAL STAFF REPORTERS OF THE WALL STREET JOURNAL SAN FRANCISCO THE LONGRUNNING LIBEL CASE BROUGHT BY PSYCHOANALYST JEFFREY MASSON AGAINST NEW YORKER MAGAZINE WRITER JANET MALCOLM CAME TO A MUDDLED TEMPORARY HALT YESTERDAY WITH A FEDERAL JURY AGREEING THAT THE AUTHOR HAD DEFAMED MR MASSON BUT SAYING IT WAS UNABLE TO AGREE ON DAMAGES JUDGE EUGENE LYNCH DISMISSED THE EIGHT JURORS AFTER THEY SAID THEY WERE HOPELESSLY DEADLOCKED ON THE ISSUE OF DAMAGES ATTORNEYS IN THE CASE SAID THEY EXPECTED THE JUDGE TO DECIDE LATER WHETHER TO DECLARE A MISTRIAL OR ATTEMPT TO TRY THE ISSUE OF DAMAGES SEPARATELY LEGAL EXPERTS SAID A MISTRIAL WAS THE MORE PROBABLE OUTCOME MR MASSON A THERAPIST WHO WAS FIRED FROM HIS JOB AS PROJECTS DIRECTOR AT THE FREUD ARCHIVES IN LONDON FILED SUIT AGAINST MS MALCOLM AND THE NEW YORKER IN 1984 ALLEGING THAT CERTAIN QUOTATIONS IN TWO 1983 ARTICLES WERE FABRICATED OR DOCTORED THE CASE HAS BEEN WENDING ITS WAY THROUGH THE COURTS EVER SINCE TWO LOWER COURTS THREW OUT THE CASE ONLY TO HAVE THE US SUPREME COURT REINSTATE IT IN 1991 RULING THAT CHANGING QUOTATIONS COULD BE LIBELOUS IF THE CHANGES DISTORTED THE SPEAKER'S MEANING THE HEART OF MR MASSON'S COMPLAINT AS IT WENT TO TRIAL HERE IS THAT IN TWO 1983 NEW YORKER ARTICLES MS MALCOLM DOCTORED FIVE QUOTES HE ORIGINALLY COMPLAINED THAT SHE HAD ALTERED NINE OTHER QUOTES BUT AMENDED HIS SUIT TO DROP SUCH COMPLAINTS WHEN HE FOUND THAT THOSE QUOTATIONS WERE ON TAPE AS PUBLISHED IN ITS DECISION THE JURY IN SAN FRANCISCO FOUND THAT MS MALCOLM PUBLISHED TWO QUOTATIONS THAT SHE KNEW DEFAMED MR MASSON AND WERE USED WITH RECKLESS DISREGARD FOR THE TRUTH ONE QUOTATION SAID MR MASSON INTENDED TO TURN ANNA FREUD'S HOUSE THE HOME OF THE FREUD ARCHIVES INTO A PLACE OF SEX WOMEN FUN THE OTHER QUOTATION HAD MR MASSON SAYING I'M THE WRONG MAN IF THE INSTITUTE'S DIRECTOR THOUGHT MR MASSON WOULD ACCEPT HIS DISMISSAL IN SILENCE THE SECOND QUOTATION APPEARED ON TAPE BUT AS PART OF A LONGER QUOTATION THAT WASN'T PUBLISHED THE JURY ALSO FOUND THAT THE OTHER THREE QUOTATIONS IN DISPUTE WERE FALSE BUT NOT DEFAMATORY AND THAT THE NEW YORKER WASN'T LIABLE FOR ANY OF THEM BECAUSE THE MAGAZINE DIDN'T KNOW THE QUOTATIONS WERE FALSE AND HADN'T ACTED WITH RECKLESS DISREGARD FOR THE TRUTH HOWEVER ATTORNEYS FOR BOTH SIDES EXPECT A MISTRIAL BECAUSE OF THE JURY'S INABILITY TO DECIDE ON DAMAGES AND THEREFORE EXPECT THE CASE TO START ALL OVER AGAIN MR MASSON'S LAWYER CHARLES O MORGAN JR SAID HIS CLIENT WILL SEEK A NEW TRIAL AGAIN ASKING FOR DAMAGES OF 75 MILLION FROM MS MALCOLM AND THE NEW YORKER IT IS UNFORTUNATE THAT THIS LONG SAGA HASN'T ENDED AND HAS TO KEEP GOING MR MORGAN SAID ADDED GARY BOSTWICK MS MALCOLM'S ATTORNEY WE'RE ALL DISAPPOINTED THIS ISN'T OVER ALTHOUGH JUDGE LYNCH ISN'T EXPECTED TO DECIDE THE MISTRIAL ISSUE IMMEDIATELY THE ALTERNATIVE OF A SEPARATE TRIAL ON DAMAGES IS CONSIDERED UNLIKELY BY OTHER LIBEL LAWYERS THEY SAID JUDGES ARE USUALLY RELUCTANT TO ORDER A SEPARATE TRIAL ON DAMAGES WHEN JURIES ARE HUNG BECAUSE IT IS UNFAIR TO DEFENDANTS IN SUCH A CASE A DEFENDANT WHO LOST ON THE MERITS OFTEN HAS NONETHELESS MADE A STONG ENOUGH CASE TO PERSUADE SOME JURORS TO AWARD RELATIVELY LOW DAMAGES A NEW TRIAL ON DAMAGES FORCES THE DEFENDANT TO RETRY THE ONLY ISSUE ON WHICH SHE HAS HAD SOME SUCCESS WHILE PRESERVING THE PLAINTIFF'S VICTORY ENTIRELY JUDGE LYNCH IS ATTEMPTING IN ESSENCE TO SALVAGE HIS TRIAL TO PREVENT A HUNG JURY SAID DAVID OGDEN A FIRST AMENDMENT SPECIALIST AT THE LAW FIRM OF JENNER & BLOCK IN WASHINGTON THE ULTIMATE LEGAL OUTCOME IS THUS UNCLEAR BUT THE CASE HAS ALREADY GENERATED AS MUCH CONTROVERSY ABOUT THE PRACTICE OF JOURNALISM AND THE CHARACTER OF JOURNALISTS AS IT HAS ABOUT THE LEGAL ISSUES MS MALCOLM HAS STAUNCHLY DENIED DOCTORING QUOTES BUT HAS ADMITTED COMPRESSING QUOTES FROM DIFFERENT PLACES AND TIMES INTO A SORT OF SINGLE COMPOSITE INTERVIEW AFTER THE MASSON PIECES MS MALCOLM WROTE A CONTROVERSIAL ANALYSIS OF JOE MCGINNIS'S BOOK ABOUT CONVICTED MURDERER JEFFREY MACDONALD IN WHICH SHE MUSED THAT A JOURNALIST BY TRADE MAY BE A KIND OF BETRAYER OR CON ARTIST MS MALCOLM'S CRITICS ATTACK HER FOR COMPRESSING QUOTES AND FOR HER PORTRAYAL OF JOURNALISTIC CHARACTER TO PARAPHRASE THE LATE JOHN HERSEY THE NOVELIST AND NEW YORKER WRITER THE LEGEND ON THE LICENSE OF JOURNALISTS IS THAT NONE OF THIS IS MADE UP SAID TOM GOLDSTEIN DEAN OF THE GRADUATE SCHOOL OF JOURNALISM AT THE UNIVERSITY OF CALIFORNIA AT BERKELEY THIS IS A VERY IDIOSYNCRATIC CASE THE NEW YORKER IS A VERY IDIOSYNCRATIC MAGAZINE AND SHE IS A VERY IDIOSYNCRATIC WRITER JOAN KONNER DEAN OF THE GRADUATE SCHOOL OF JOURNALISM AT COLUMBIA UNIVERSITY SAID SHE COULDN'T COMMENT ON THE LEGAL ISSUES OF THE CASE BUT SAID THAT BASED ON REPORTING ABOUT THE TRIAL SHE FELT THAT MS MALCOLM HAD TAKEN LIBERTIES THAT I THINK AREN'T GOOD JOURNALISTIC PRACTICES THERE IS AN OBLIGATION BOTH FROM THE POINT OF VIEW OF PERSONAL INTEGRITY AND JOURNALISTIC PRACTICE THAT THOU SHALT NOT BEAR FALSE WITNESS 9306040031 930604 YOUR MONEY MATTERS WEEKEND REPORT YOUR LIFETIME GUIDE TO MONEY HOW TO START TAKING CONTROL OF YOUR FINANCES BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL FEEL LIKE YOUR PERSONAL FINANCES ARE A MESS BANISH THAT THOUGHT AND TAKE CONTROL ALMOST ALL OF US HAVE A DEEPSEATED UNEASE ABOUT OUR FINANCES THERE'S THIS NAGGING CONCERN I'M NOT DOING AS WELL AS I THINK I SHOULD' SAYS J MICHAEL MARTIN AN ELLICOTT CITY MD FINANCIAL PLANNER NO WONDER IT'S SO MUCH EASIER TO SPEND DOLLARS THAN TO SAVE THEM THE CHOICES IN INVESTING INSURANCE AND THE LIKE ARE MINDNUMBINGLY COMPLEX AND WE OFTEN FEEL INADEQUATE WHEN WE READ A MAGAZINE ARTICLE ABOUT THE RARE COUPLE WHO IS ABLE TO RETIRE AT AGE 50 OR AN INVESTOR WHO DOUBLED HIS MONEY IN JUST TWO YEARS BUT SOME OF THE WORRYING IS UNNECESSARY FINANCIAL ADVISERS SAY IN GENERAL PEOPLE ARE NOT IN AS BAD A SHAPE AS THEY ENVISION SAYS DANIEL J CAHILL A SENIOR VICE PRESIDENT OF FINANCIAL PLANNER AYCO CORP AN AMERICAN EXPRESS UNIT IN ALBANY NY EQUALLY IMPORTANT THERE'S A LOT THAT PEOPLE CAN DO ON THEIR OWN TO DIAGNOSE THEIR FINANCIAL HEALTH MAKE SPECIFIC PLANS TO IMPROVE IT AND THEN FEEL THE RELIEF THAT COMES WITH BEING MORE IN CONTROL YOU DON'T HAVE TO BE A FINANCIAL WIZARD YOU DON'T HAVE TO HAVE A FINANCIAL PLANNER YOU CAN DO THIS WORK YOURSELF SAYS NEW YORK PLANNER LEWIS J ALTFEST INDEED PEOPLE SHOULD DO SOME RUDIMENTARY FINANCIAL PLANNING THEMSELVES EVEN IF LIKE MOST FOLKS THEY ARE GOING TO HIRE SPECIALISTS SUCH AS FINANCIAL PLANNERS STOCKBROKERS INSURANCE AGENTS AND ACCOUNTANTS TO ASSIST ON THE SPECIFICS THEY NEED TO HAVE THOUGHT CLEARLY ABOUT WHAT IT IS THEY WANT TO AVOID BEING LED ASTRAY BY INCOMPETENT OR UNSCRUPULOUS ADVISERS SAYS BARBARA ROPER DIRECTOR OF INVESTOR PROTECTION FOR THE CONSUMER FEDERATION OF AMERICA THIS ARTICLE ON FINANCIAL PLANNING IS THE FIRST IN A SERIES THAT IS INTENDED TO DEMYSTIFY AND SIMPLIFY THE PROCESS OF GETTING ONE'S FINANCES IN SHAPE THE AIM IS TO HELP READERS FOCUS ON THE MOST IMPORTANT FINANCIAL MOVES FOR DIFFERENT STAGES OF THEIR LIVES AND TO TUNE OUT THE MINOR DISTRACTIONS AND THE DRIVEL THE ACCOMPANYING STORIES IN THIS ISSUE HIGHLIGHT THE MAJOR ISSUES INVOLVED IN SETTING FINANCIAL GOALS AND PRIORITIES FOR PEOPLE IN EACH OF THREE BROAD AGE GROUPS 20S AND 30S 40S AND 50S AND 60S PLUS SEE RELATED STORIES FINANCIAL PLANNING THROUGH THE AGES AND TO GET AHEAD YOU'VE REALLY GOT TO KNOW WHERE YOU'RE STARTING FROM WSJ JUNE 4 1993 TO BE SURE SOME PEOPLE DO THINGS EARLIER OR LATER IN THEIR LIVES THAN OTHERS FOR INSTANCE IT'S NOT UNCOMMON THESE DAYS FOR PEOPLE IN THEIR 40S OR 50S TO BE STARTING SECOND FAMILIES AND FACING MANY OF THE SAME PROBLEMS AS 20 AND 30YEAROLDS WHO ARE JUST STARTING OUT SIMILARLY A 50SOMETHING EXECUTIVE WHO DEALS WITH CORPORATE DOWNSIZING BY TAKING EARLY RETIREMENT IS LIKELY TO FACE MANY OF THE SAME CONCERNS AS A MUCH OLDER RETIREE STILL BREAKING OUT THE ISSUES BY AGE CATEGORY PROVIDES A HANDY WAY OF THINKING ABOUT THE FINANCIAL AND INVESTMENT DECISIONS THAT WE FACE OVER THE COURSE OF OUR LIFETIMES KEEP IN MIND THAT FINANCIAL PLANNING IS FUNDAMENTALLY ABOUT LOOKING AT ONE'S RESOURCES AND FIGURING OUT HOW TO USE THEM TO MEET ONE'S BASIC LIFE GOALS IN OUR WORKING YEARS A KEY CHALLENGE IS TO CATCH A FEW MORE OF THE DOLLARS THAT FLOW THROUGH OUR HANDS AND THEN INVEST THOSE DOLLARS APPROPRIATELY TO PAY FOR RETIREMENT OR CHILDREN'S COLLEGE EXPENSES LATER ON JUST AS IMPORTANT IS HAVING A STRONG SAFETY NET TO HELP OURSELVES AND OUR FAMILIES IF SOMETHING UNTOWARD HAPPENS TOMORROW THAT MEANS ASKING THE UNPLEASANT WHAT IF QUESTIONS WHAT IF I'M HIT BY A BUS WHAT IF MY HOME IS DAMAGED BY FIRE AND COMMITTING TO SAY BEEF UP LIFE INSURANCE OR DRAFT A WILL FINALLY PEOPLE CAN FEEL A LOT MORE IN CONTROL OF THEIR FINANCES IF THEY JUST STRIVE TO KEEP THINGS SIMPLE FOR INSTANCE MANY CORPORATE EMPLOYEES CAN GET MOST OF THE INSURANCE THEY NEED AND DO MOST OF THEIR RETIREMENT SAVING WITHOUT LOOKING ANY FURTHER THAN THEIR COMPANY BENEFITS PLANS THERE'S NO REASON TO BUY A COMPLEX INVESTMENT OR INSURANCE PRODUCT IF A SIMPLE ONE WILL DO THE VAST MAJORITY OF PEOPLE SHOULD IGNORE 90 OF THE FINANCIAL PRODUCTS THAT ARE OUT THERE SAYS MS ROPER OF THE CONSUMER FEDERATION TAKE THE TIME TO ORGANIZE YOUR PERSONAL FILES SO THAT YOU CAN PUT YOUR HANDS ON BROKERAGE STATEMENTS OR INSURANCE RECORDS WHEN YOU NEED THEM AS YOU REVIEW DIFFERENT ASPECTS OF YOUR FINANCES LOOK FOR OPPORTUNITIES TO TRIM THE NUMBER OF FINANCIAL PRODUCTS AND PROVIDERS IT'S JUST TOO MUCH TO HAVE FIVE INDIVIDUAL RETIREMENT ACCOUNTS FOUR BROKERAGE ACCOUNTS AT THREE FIRMS 10 DIFFERENT INSURANCE POLICIES WITH SIX COMPANIES SAYS JAMES E WILSON A COLUMBIA SC PLANNER TRACKING ALL THAT HE SAYS IS A SECOND FULLTIME JOB 9306040030 930604 BUSINESS BRIEF STET SPA CHAIRMAN DENIES GROUP PAID KICKBACKS TO POLITICAL PARTIES STET SPA AN ITALIAN STATE TELECOMMUNICATIONS GROUP NEVER HAS PAID KICKBACKS TO POLITICAL PARTIES CHAIRMAN BIAGIO AGNES SAID ADDRESSING AN ANNUAL SHAREHOLDERS' MEETING IN TURIN ITALY MR AGNES SAID STET HAS NEVER GIVEN CONTRIBUTIONS TO PARTIES OR TO THEIR CONNECTIONS MR AGNES ADDED THAT AS FAR AS THE GROUP'S SUBSIDIARIES WERE CONCERNED WE WERE NOT AWARE OF ANY IRREGULAR SITUATIONS WE DIDN'T SEE ANY INDICATIONS EVEN IN THESE LAST VERY TURBULENT MONTHS STET WHOSE FORMAL NAME IS SOCIETA FINANZIARIA TELEFONICA PER AZIONI IS CONTROLLED BY ITALIAN INDUSTRIAL HOLDING COMPANY ISTITUTO PER LA RICOSTRUZIONE INDUSTRIALE 9306040029 930604 MARVIN DAVIS CREATES CONCERN TO INVEST IN COMMUNICATIONS FINANCIAL FIRMS BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES FINANCIER MARVIN DAVIS HAS FORMED A NEW COMPANY TO INVEST IN COMMUNICATIONS AND FINANCIAL SERVICES CONCERNS VALUED AT AS MUCH AS 150 MILLION HIRING AWAY R RUDOLPH REINFRANK FROM ROY E DISNEY'S SHAMROCK HOLDINGS INC TO RUN IT THE NEW COMPANY DAVIS REINFRANK CO WILL HAVE A SPECIAL FOCUS ON ENTERTAINMENT SOFTWARE AND COMMUNICATIONS TECHNOLOGY COMPANIES TECHNOLOGY IS THE GAME TODAY MR DAVIS SAID IN AN INTERVIEW THE ONLY PROBLEM IS IT CHANGES SO FAST WITH EVERYBODY BUILDING A NEW MOUSETRAP EVERY FIVE MINUTES YOU NEED A RESEARCH COMPANY THAT CAN BRING THE NEW TECHNOLOGIES TO YOU MR DAVIS'S LUCK IN PICKING THE NEXT HOT ENTERTAINMENT TECHNOLOGY HAS BEEN MIXED SPI HOLDING INC A PROVIDER OF INHOUSE MOVIES TO HOTELS THAT HE ACQUIRED IN 1989 MADE A BANKRUPTCYLAW FILING LAST YEAR AND HAS SINCE EMERGED FROM BANKRUPTCY COURT THE COMPANY HAD BEEN BURDENED BY HEAVY DEBT INCURRED DURING THE 1989 SALE AND HAS SUSTAINED INCREASED COMPETITION FROM ON COMMAND A PAYPERVIEW SYSTEM BACKED BY COMSAT CORP THE BIG WASHINGTON SATELLITE COMPANY IN THE ENTERTAINMENTSOFTWARE AREA DAVIS REINFRANK WILL MINE CONTACTS THAT MR DAVIS'S SON PRODUCER JOHN A DAVIS HAS IN THE ENTERTAINMENT INDUSTRY WITH HIS WINDOW INTO THE ENTERTAINMENT AREA WE'LL SEE A LOT OF OPPORTUNITY TO DEPLOY PRIVATE CAPITAL SAID MR REINFRANK WHO HAS KNOWN JOHN DAVIS FOR SEVERAL YEARS THE YOUNGER MR DAVIS IS ONE OF THREE PRODUCERS OF THE COMING PARAMOUNT PICTURES FILM THE FIRM MR REINFRANK WHO DIRECTED SEVERAL ACQUISITIONS AND SALES DURING HIS NINE YEARS AT SHAMROCK AND TREFOIL CAPITAL INVESTORS LP THE PRIVATE INVESTMENT COMPANIES OF WALT DISNEY CO VICE CHAIRMAN ROY DISNEY SAID THE NEW DAVIS INVESTMENT COMPANY WILL FOCUS ON COMPANIES IN THE 30 MILLION TO 150 MILLION RANGE BECAUSE THAT IS WHERE NEW TECHNOLOGIES ARE TO BE FOUND THEY'RE SMALL ENOUGH TO BE UNDER THE RADAR SCREEN FOR WALL STREET SAID MR REINFRANK WHO SERVES AS PRINCIPAL AND MANAGING GENERAL PARTNER OF DAVIS REINFRANK ALONG WITH MR DAVIS AND HIS SON COMPANIES IN THE SMALL AND MIDMARKET RANGE CAN BENEFIT FROM PRIVATE AS OPPOSED TO PUBLIC CAPITAL DAVIS REINFRANK WON'T BE SEEKING INVESTORS FOR A FUND MR REINFRANK SAID ESPECIALLY SINCE MUCH OF MR DAVIS' NET WORTH OR ASSETS MINUS LIABILITIES IS IN CASH HIS NET WORTH IS ESTIMATED BY BUSINESS PUBLICATIONS AT BETWEEN 14 BILLION AND 23 BILLION VIEWED AS A SHREWD INVESTOR THE 67YEAROLD MR DAVIS AMASSED MUCH OF HIS FORTUNE SELLING OIL PROPERTIES JUST BEFORE ENERGY PRICES PLUNGED LATER HE REALIZED A GAIN OF 325 MILLION ON THE SALE OF TWENTIETH CENTURY FOX FILM CORP TO NEWS CORP IN THE MID1980S AND HE SOLD THE BEVERLY HILLS HOTEL TO THE SULTAN OF BRUNEI IN 1987 FOR 200 MILLION JUST ONE YEAR AFTER BUYING IT FOR 135 MILLION BUT MR DAVIS IS ALSO SOMETHING OF A TIREKICKER OVER THE PAST SEVERAL YEARS HE HAS MADE PASSES AT CONTINENTAL AIRLINES NORTHWEST AIRLINES UNITED AIRLINES CBS INC AND THE OLD MGM/UA COMMUNICATIONS CO AND IN ALL CASES EITHER DROPPED OUT OF THE BIDDING OR WAS REBUFFED ALTHOUGH DAVIS REINFRANK WILL FOCUS ON SMALLER INVESTMENTS MR DAVIS SAID HE IS CONTINUING TO LOOK AT BILLIONDOLLAR TRANSACTIONS WITH THE HELP OF MR REINFRANK WHO WAS ALSO NAMED MANAGING DIRECTOR OF MR DAVIS' HOLDING COMPANY WE HAVE A FEW UNDER CONSIDERATION RIGHT NOW MR DAVIS SAID SOME IN COMMUNICATIONS SOME IN ENTERTAINMENT THOUGH MR REINFRANK SAYS HE LEAVES THE ROY DISNEY INVESTMENT FOLD ON A GOOD NOTE HIS MOVE COMES AFTER A DRAINING YEARANDAHALF IN WHICH THAT GROUP'S ENERGIES HAVE BEEN FOCUSED ON TURNING AROUND THE MONEYLOSING SNEAKER MAKER LA GEAR INC STANLEY GOLD THE KEY INVESTMENT STRATEGIST FOR MR DISNEY ALSO SERVES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF LA GEAR OBVIOUSLY I'VE ENJOYED WORKING WITH THE DISNEY FAMILY AND STANLEY SAYS MR REINFRANK WHO CONTINUES AS A PARTNER IN TREFOIL BUT YOU GET TO THE POINT WHERE IT'S TIME FOR A CHANGE 9306040028 930604 TO GET AHEAD YOU'VE REALLY GOT TO KNOW WHERE YOU'RE STARTING FROM WHERE DOES THE MONEY GO THAT'S THE QUESTION MANY PEOPLE ASK AT THE END OF EACH MONTH AND IT'S A CRITICAL QUESTION FOR ANYONE WHO IS TRYING TO GET A BETTER HANDLE ON HIS OR HER PERSONAL FINANCES A CENTRAL PART OF MANAGING ONE'S MONEY IS FIGURING OUT WHETHER CURRENT RESOURCES AND ADDITIONAL DOLLARS BEING SET ASIDE WILL BE ENOUGH TO PAY FOR IMPORTANT LIFE GOALS YOU OBVIOUSLY CAN'T ANSWER THAT QUESTION IF YOU DON'T KNOW WHERE YOU STAND TODAY FIRST A SIMPLE EXERCISE ADD UP ALL YOUR ASSETS INCLUDING INVESTMENTS THE VALUE OF YOUR HOME AND THE CASH VALUE OF LIFE INSURANCE POLICIES ADD UP LOAN BALANCES AND OTHER LIABILITIES SUBTRACT LIABILITIES FROM ASSETS TO GET YOUR NET WORTH THE NUMBER MAY BE MUCH HIGHER OR LOWER THAN YOU WOULD THINK NEXT A MORE DIFFICULT AND OFTEN MORE IMPORTANT TASK FIGURE OUT HOW YOU ARE SPENDING THE DOLLARS YOU TAKE IN FROM A JOB FROM INVESTMENTS FROM SOCIAL SECURITY OR OTHER SOURCES A LOT OF PEOPLE FEEL FINANCIALLY OUT OF CONTROL BECAUSE THEY ARE FINANCIALLY OUT OF CONTROL THEY DON'T KNOW WHERE THE MONEY IS GOING SAYS DANIEL J CAHILL OF FINANCIAL PLANNER AYCO CORP IN ALBANY NY REVIEW LAST YEAR'S CANCELED CHECKS AND CREDITCARD STATEMENTS TO ESTIMATE HOW MUCH MONEY YOU SPEND IN CATEGORIES SUCH AS HOUSING TAXES CLOTHING ENTERTAINMENT AND INSURANCE BE SURE TO LOOK AT HOW MUCH YOU ARE MANAGING TO PUT AWAY IN SAVINGS AND INVESTMENTS FOR LONGTERM GOALS LIKE RETIREMENT OR CHILDREN'S EDUCATION IF YOU'RE LIKE MANY PEOPLE A SURPRISINGLY LARGE SUM OF MONEY DISAPPEARS IN MISCELLANEOUS SPENDING CONSIDER CARRYING AROUND A SMALL NOTEBOOK FOR ONE MONTH AND JOTTING DOWN EACH AND EVERY EXPENDITURE ALARM BELLS SHOULD GO OFF OF COURSE IF YOU'RE SPENDING MORE MONEY THAN YOU TAKE IN ONE OF THE BIGGEST PROBLEMS I SEE SAYS KAREN SCHAEFFER A SILVER SPRING MD FINANCIAL PLANNER IS PEOPLE REFUSING TO LIVE WITHIN THEIR MEANS SOME PEOPLE DIG THEMSELEVES INTO A HOLE BY RUNNING UP BIG CREDITCARD DEBT TO PAY FOR A LIFESTYLE THEY REALLY CAN'T AFFORD FOR PEOPLE WHO ARE SAVING THE BIG QUESTION IS HOW MUCH IS ENOUGH IF YOU ARE WITHIN SEVERAL YEARS OF RETIREMENT FOR INSTANCE IT'S TIME FOR A CAREFUL ANALYSIS OF WHETHER YOUR NET WORTH AND CURRENT SAVINGS WILL SUFFICE TO FINANCE THE LIFESTYLE YOU ENVISION YOU MAY WANT TO HIRE A FINANCIAL PLANNER FOR A FEW HOURS' CONSULTATION OR USE A COMPUTER PROGRAM TO ASSIST WITH SOME OF THE MATH MANY OTHER PEOPLE SHOULD SIMPLY FOCUS ON SAVING SOMETHING ON A REGULAR BASIS THE HARDEST THING FOR PEOPLE IS TO COMMIT THEMSELVES TO FIND SOME DOLLARS TO SAVE SAYS KAREN W SPERO A CLEVELAND FINANCIAL PLANNER I AM TALKING ABOUT WEALTHY PEOPLE AS WELL AS NOT WEALTHY PEOPLE IT'S DIFFICULT FOR EVERYONE A RULE OF THUMB IS TO SAVE 10 OF GROSS INCOME BUT DON'T THROW UP YOUR HANDS IN DISGUST IF YOU ARE SAVING NEXT TO NOTHING TRY TO CUT OUT SOME SPENDING SO YOU CAN SAVE NEXT TO NOTHING PLUS 50 OR 100 A MONTH PLAN TO INCREASE THE AMOUNT LATER ON AND TO MAKE IT EASIER ARRANGE TO HAVE THAT MONEY AUTOMATICALLY DEDUCTED FROM YOUR PAYCHECK OR BANK ACCOUNT NOTE THAT WEIGHING ONE'S RESOURCES AGAINST ONE'S GOALS DOESN'T ALWAYS BRING BAD NEWS INDEED WILLIAM G BRENNAN A WASHINGTON FINANCIAL PLANNING SPECIALIST WITH ACCOUNTANTS ERNST & YOUNG SAYS HIS NEW CLIENTS ARE OFTENTIMES MUCH BETTER OFF THAN THEY THINK THEY ARE REVIEWING ONE'S FINANCIAL PICTURE CAN ALSO BE A VALUABLE OPPORTUNITY TO RETHINK BROADER GOALS AND VALUES FOR INSTANCE TOO MANY PEOPLE GET CAUGHT UP IN THE IDEA OF MAKING MORE AND SAVING MORE FOR MORE'S SAKE SAYS JAMES D SCHWARTZ AN ENGLEWOOD COLO PLANNER MR SCHWARTZ URGES HIS MOSTLY AFFLUENT CLIENTS TO DEFINE WHAT IS ENOUGH MONEY FOR THEM AND TO FOCUS MORE ON THEIR NONFINANCIAL GOALS FOR A BUSINESS OWNER WHO IS A SEVENDAYAWEEK SLAVE TO THE ENTERPRISE HE SAYS THAT MIGHT MEAN CUTTING BACK TO SPEND MORE TIME WITH FAMILY OR OTHER INTERESTS SEE RELATED STORIES HOW TO START TAKING CONTROL OF YOUR FINANCES AND FINANCIAL PLANNING THROUGH THE AGES WSJ JUNE 4 1993 9306040027 930604 PEPPERAND SALT THE PHASE CALLED THE BEGINNER THAN READ ABOUT OUR ECONOMICS RAILROAD BRIDGE TRACKS SHELTER 9306040025 930604 SOLO SERVE MONTHLY SALES SAN ANTONIO SOLO SERVE CORP SAID SALES IN THE FOURWEEK PERIOD ENDED SATURDAY ROSE 93 TO 123 MILLION FROM 113 MILLION IN THE YEAREARLIER PERIOD COMPARABLESTORE SALES HOWEVER DECREASED 58 THE OFFPRICE RETAILER SAID 9306040024 930604 CREDIT MARKETS PRICES OF TREASURY NOTES BONDS EDGE HIGHER AS INVESTORS AWAIT REPORT ON MAY EMPLOYMENT BY THOMAS D LAURICELLA AND TERENCE DONNELLY SPECIAL TO THE WALL STREET JOURNAL NEW YORK TREASURY NOTES AND BONDS EDGED HIGHER YESTERDAY WITH MOST OF THE MARKET'S ATTENTION FIXED ON THE KEY EMPLOYMENT FIGURES TO BE RELEASED TODAY THE BENCHMARK 30YEAR TREASURY BOND ROSE NEARLY 1/4 POINT OR NEARLY 250 FOR A BOND WITH A 1000 FACE VALUE TO 103 9/32 ITS YIELD WHICH MOVES IN THE OPPOSITE DIRECTION FROM THE PRICE FELL TO 686 DOWN FROM 687 ON WEDNESDAY THE 10YEAR NOTE ROSE NEARLY 1/4 POINT TO 101 23/32 TO YIELD 6 DOWN FROM 603 MOST OF THE PRICE ACTION YESTERDAY WAS THE RESULT OF LASTMINUTE ADJUSTMENTS AHEAD OF THE IMPORTANT MAY EMPLOYMENT REPORT PLAYERS SAID ASIDE FROM POSITION SQUARING THE BULK OF YESTERDAY'S ACTION WAS IN INTERMEDIATE TREASURYS THOSE SECURITIES ROSE ON MUNICIPAL DEFEASANCE PROGRAMS WHERE STATE OR LOCAL GOVERNMENTS REFINANCE OLDER HIGHER INTEREST DEBT BY ISSUING NEW SECURITIES AT LOWER INTEREST RATES UNTIL OUTSTANDING SECURITIES CAN BE CALLED PROCEEDS FROM THE NEW ISSUES ARE INVESTED IN TREASURYS WHICH ARE HELD IN ESCROW TRADERS SAID MUNICIPALITIES WERE BUYING TREASURYS MAINLY IN THE FIVEYEAR TO 10YEAR SECTOR AND WITH PARTICIPATION LIMITED AHEAD OF THE EMPLOYMENT REPORT THAT PROVED TO BE ENOUGH TO PULL THE REST OF THE MARKET HIGHER DATA RELEASED EARLY IN THE SESSION SHOWING A RISE OF 5000 IN WEEKLY STATE UNEMPLOYMENT CLAIMS HAD LITTLE IMPACT ON TRADING THE MARKET ALSO BRUSHED ASIDE ANOTHER SOLID PERIOD FOR AUTO SALES EVEN THOUGH A RECENT PICKUP COULD MEAN A FASTER PACE OF AUTO PRODUCTION IN COMING MONTHS CAR SALES CLOCKED IN AT AN ANNUAL RATE OF SEVEN MILLION UNITS FOR LATE MAY UP FROM 64 MILLION IN THE PREVIOUS 10DAY PERIOD OF MAY LIGHTTRUCK SALES POSTED A 54MILLION PACE IN THE LATE MAY PERIOD CAR SALES CONTINUED TO BE QUITE STRONG AND THE MARKET SEEMED TO SHAKE THAT OFF PRETTY WELL SAID CARY LEAHEY AN ECONOMIST AT LEHMAN GOVERNMENT SECURITIES OVERALL TRADING WAS LIGHT YESTERDAY THERE WERE LONG PAUSES WITH ONLY POCKETS OF ACTIVITY SAID JAMES KENNEY HEAD TRADER AT PRUDENTIAL SECURITIES INC KEEPING MANY PLAYERS ON THE SIDELINES WAS A RELUCTANCE TO ESTABLISH NEW POSITIONS THE DAY BEFORE THE JOBS REPORT THE AVERAGE FORECAST AMONG ECONOMISTS POLLED BY DOW JONES CAPITAL MARKETS REPORT WAS AN INCREASE IN NONFARM PAYROLL EMPLOYMENT OF 155000 FOR MAY WHILE THAT WOULD REPRESENT AN IMPROVEMENT FROM THE 119000 RISE POSTED IN PAYROLLS DURING APRIL SUCH AN INCREASE IN THE MAY REPORT WOULD INDICATE THE ECONOMY CONTINUES TO GROW AT A MODERATE PACE IT LOOKS LIKE PEOPLE FEEL IT IS GOING TO BE A VERY HOHUM NUMBER SAID LAWRENCE WALDORF A PORTFOLIO MANAGER AT FIRST INVESTORS ASSET MANAGEMENT ALONG WITH THE USUAL MONTHLY DATA TRADERS AND ANALYSTS WILL HAVE TO WADE THROUGH BENCHMARK REVISIONS SOME OF WHICH WILL ALTER THE EMPLOYMENT PICTURE GOING BACK 10 YEARS THE NET RESULT OF THE BENCHMARK REVISION SAY ANALYSTS WILL BE A MOREPOSITIVE PORTRAIT OF LABOR MARKET CONDITIONS OVER THE PAST YEAR THAN HAD BEEN PREVIOUSLY PAINTED THIS COULD HAVE A NEGATIVE EFFECT ON BOND PRICES BECAUSE IT MIGHT CONVINCE INVESTORS THAT THE ECONOMY HAS GAINED MORE STRENGTH THAN PREVIOUSLY BELIEVED INVESTORS FEAR RAPID ECONOMIC GROWTH BECAUSE IT COULD LEAD TO HIGHER INFLATION WHICH EATS AWAY AT RETURNS ON INVESTMENTS WITH A FIXED RATE OF RETURN ONE POTENTIAL WILD CARD FOR THE INFLATIONSENSITIVE FINANCIAL MARKETS WILL BE THE LABOR DEPARTMENT'S FIGURES ON AVERAGE HOURLY EARNINGS INCLUDED IN THE EMPLOYMENT REPORT WHILE MOST ECONOMISTS ARE PREDICTING A TAME 03 RISE IN EARNINGS A LARGERTHANPROJECTED GAIN COULD RATTLE BOND TRADERS COMING AMID NERVOUSNESS ABOUT OTHER SOURCES OF INFLATION THE MARKET WOULD BE DISHEARTENED IF IT GOT A SENSE THAT WAGES WERE PICKING UP SAID MR LEAHEY OF LEHMAN WHILE THERE WILL UNDOUBTEDLY BE A GREAT DEAL OF ATTENTION GIVEN TO THE EMPLOYMENT REPORT MANY SAID INVESTORS COULD PAY MORE ATTENTION TO COMING INFLATION FIGURES WITH THE FEDERAL RESERVE APPARENTLY HAVING SHIFTED TOWARD A BIAS FOR RAISING RATES IN RESPONSE TO INFLATION WORRIES EARLIER IN THE YEAR IT IS THE PRODUCER AND CONSUMER PRICE REPORTS THAT ARE SEEN AS MAKEORBREAK EVENTS FOR THE MARKET PEOPLE REALLY SEEM TO BE CONCENTRATING MORE ON THE INFLATION NEWS SAID MR KENNEY OF PRUDENTIAL THE NEXT READINGS ON INFLATION ARE STILL A WEEK AWAY THE PRODUCER PRICE INDEX IS DUE TO BE RELEASED NEXT FRIDAY AND CONSUMER PRICE FIGURES ARE SLATED FOR RELEASE ON JUNE 15 MANY IN THE MARKET ARE BETTING THAT THE PRICE INCREASES THAT BOOSTED THE INFLATION RATE OVER THE FIRST FOUR MONTHS OF THE YEAR WILL DISSIPATE THE BIAS IS TO BUY TREASURYS ANTICIPATING GOOD INFLATION FIGURES MR KENNEY SAID IF IN FACT THE EMPLOYMENT REPORT IS NEAR EXPECTATIONS AND THE CPI AND PPI SHOW A RETREAT FROM THE OUTSIZED GAINS OF THE PAST FEW MONTHS THE MARKET COULD BE SET TO RALLY BACK TO ITS RECENT HIGHS MOVING BACK DOWN TO A A 665 YIELD ON THE LONG BOND SHOULD BE ATTAINABLE BUT NOT ON THE EMPLOYMENT NUMBERS SAID MR WALDORF OF FIRST INVESTORS IT WOULD MORE LIKELY BE ON THE INFLATION NUMBERS HE SAID MR WALDORF SAID HE IS ESPECIALLY HEARTENED BY RECENT DEVELOPMENTS SUCH AS AN APPARENT WILLINGNESS BY PRESIDENT CLINTON TO COMPROMISE ON SOME ELEMENTS OF HIS BUDGET PACKAGE MAKING PASSAGE APPEAR MORE LIKELY AS A RESULT HE IS SHIFTING HIS STANCE FROM BEARISH ON TREASURYS TO NEUTRAL THE ONLY WAY THE 30YEAR BOND YIELD CAN REALLY GO OVER 7 IS IF THERE IS A BREAKDOWN IN CLINTON'S PLAN GETTING THROUGH THE SENATE AND IF WE START SEEING A STRONGER RECOVERY HE SAID TELEPHONE COMPANY U S WEST COMMUNICATIONS INC A UNIT OF U S WEST INC SUCCESSFULLY SOLD NEW BONDS YESTERDAY OVERCOMING CONCERNS CAUSED BY THE PARENT'S RECENTLY ANNOUNCED PLANS TO PURCHASE A 25 STAKE IN TIME WARNER INC'S CABLE DIVISION THE 484 MILLION 30YEAR DEBENTURE OFFERING RAISED IN SIZE FROM AN INITIALLY PLANNED 400 MILLION WAS PRICED AS 75 SECURITIES TO YIELD 7566 OR 070 PERCENTAGE POINT ABOVE THE 30YEAR TREASURY BOND ONE SYNDICATE OFFICIAL NOT INVOLVED IN THE OFFERING SAID INVESTOR DEMAND FOR THE ISSUE WAS EXTREMELY STRONG ANOTHER PORTFOLIO MANAGER SAID HE WAS ABLE TO FILL ONLY A SMALL PORTION OF HIS REQUEST FOR 10 MILLION OF THE DEBENTURES THE OFFERING WAS HANDLED BY A GROUP OF DEALERS LED BY SALOMON BROTHERS INC PROCEEDS FROM THE SALE WILL BE USED MAINLY TO PAY DOWN OUTSTANDING DEBT THE SECONDARY MARKET MEANWHILE WAS MUCH LESS EXCITING MOST HIGHGRADE AND JUNK BONDS ENDED FLAT TO 1/8 POINT HIGHER THE U S WEST DEAL WAS ALSO APPARENTLY HELPED BY THE COMPANY'S DECISION RECENTLY TO SELL ITS FINANCIAL SERVICES UNIT U S WEST FINANCIAL SERVICES INC THIS WILL ALLOW THE COMPANY TO PURSUE NEW TELECOMMUNICATIONS TECHNOLOGIES MORE AGGRESSIVELY SUCH AS WIRELESS AND BROADBAND COMMUNICATION DEVICES A PORTFOLIO MANAGER SAID IN MAY STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC SAID THEY WERE REVIEWING THE RATINGS OF U S WEST AND ITS SUBSIDIARIES FOR A POSSIBLE DOWNGRADE BECAUSE THE TIME WARNER DEAL COULD LEAD TO AN EROSION IN THE COMPANY'S CREDIT QUALITY BUT INVESTORS APPEARED TO BE SWAYED MORE BY RECENT NEWS STORIES PROCLAIMING A NEW AGE OF FULL SERVICE COMMUNICATION HIGHWAYS DELIVERING COMMUNICATIONS ENTERTAINMENT AND DATA ALONG CABLE TELEVISION LINES IN FACT SEVERAL INVESTORS SAID THEY BOUGHT THE BONDS WITH THE INTENTION OF SELLING THEM WITHIN A MONTH IF THEY RISE IN PRICE A PROCESS KNOWN AS FLIPPING THE LATEST SUPPLY WAVE IN THE MUNICIPAL BOND MARKET BROUGHT IN NEARLY 2 BILLION OF SECURITIES INCLUDING AN UNUSUAL OHIO POWER ISSUE AND A LARGE OFFERING FROM THE NEW YORK STATE DORMITORY AUTHORITY AS FOR THE NEW OFFERINGS THE OHIO MUNICIPAL ELECTRIC GENERATION AGENCY JOINT VENTURE 5'S 1587 MILLION OF BENEFICIALINTEREST CERTIFICATES WERE BROUGHT TO THE MARKET BY A MORGAN STANLEY & CO GROUP THE JOINT VENTURE OF 42 PARTICIPANTS WAS ESTABLISHED TO FINANCE CONSTRUCT AND OPERATE A HYDROELECTRIC FACILITY ON THE OHIO RIVER THE PARTICIPANTS ARE PRIMARILY SMALL MUNICIPALITIES IN NORTHERN OHIO YIELDS FOR THE 1993 CERTIFICATES RANGE FROM 430 IN 1998 TO 568 IN 2016 AND 2024 DEMAND FOR THE SECURITIES WAS SO STRONG THAT MORGAN STANLEY WAS ABLE TO REPRICE THE OFFERING AND LOWER YIELDS BY 004 TO 007 PERCENTAGE POINT SEPARATELY THE DAY'S LARGEST NEW ISSUE WAS THE NEW YORK STATE DORMITORY AUTHORITY'S 7895 MILLION OF CITY UNIVERSITY REVENUE AND REFUNDING BONDS CHRYSLER CORP LIVENED UP THE STRUCTURED FINANCE MARKETS WITH A 12 BILLION ISSUE OF AUTOLOAN SECURITIES THE SECOND ASSETBACKED ISSUE BY A BIG THREE AUTO MAKER IN TWO WEEKS MEANWHILE ACTION IN THE MORTGAGEBACKED SECURITIES MARKET WAS QUIET WITH PRICES ENDING THE SESSION IN RELATIVE SYNC WITH INTERMEDIATE TREASURYS IN FRONT OF TODAY'S EMPLOYMENT REPORT THE CHRYSLER ISSUE LAUNCHED BY FIRST BOSTON CORP WAS SLICED INTO FOUR PARTS INCLUDING ONE FLOATINGRATE CLASS TWO FIXEDRATE CLASSES AND A SHORTDATED CLASS TARGETED TO MONEY MARKET ACCOUNTS SEVERAL RECENT ISSUES BY THE AUTO MAKERS HAVE BEEN CUT INTO SIMILAR CHUNKS IN AN ATTEMPT TO REACH A BROADER INVESTOR BASE THE LARGEST CLASS 497 MILLION OF TRIPLEA RATED CERTIFICATES WAS PRICED WITH A 490 COUPON AT 99 30/32 TO YIELD 4973 A 047 PERCENTAGE POINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE THE CERTIFICATES HAVE A 309YEAR AVERAGE LIFE IN THE SECONDARY MORTGAGE MARKET GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES FOR JUNE DELIVERY ENDED 7/32 HIGHER AT 100 23/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 ISSUES ADVANCED 7/32 TO 100 30/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES GAINED 8/32 TO 100 25/27 9306040023 930604 BUSINESS BRIEF JOY TECHNOLOGIES INC UNION APPROVES CONTRACT AT FRANKLIN PA FACILITIES JOY TECHNOLOGIES INC PITTSBURGH SAID THE INTERNATIONAL ASSOCIATION OF MACHINISTS' UNION LOCAL 1842 VOTED TO ACCEPT A THREEYEAR CONTRACT AT JOY'S MANUFACTURING FACILITIES IN FRANKLIN PA THE UNION REPRESENTS ABOUT 620 HOURLY PRODUCTION AND MAINTENANCE WORKERS OUT OF A TOTAL WORK FORCE OF ABOUT 1000 AT THE LOCATION JOY SAID THE UNION MEMBERS WENT ON STRIKE NOV 20 AND RETURNED TO WORK JAN 4 WITHOUT A CONTRACT HOWEVER A UNION SPOKESMAN SAID THEY CALLED IT A STRIKE BUT WE CALLED IT A LOCKOUT NEITHER JOY NOR THE UNION WOULD DISCUSS THE CONTRACT'S TERMS JOY MAKES AND SERVICES MINING EQUIPMENT FOR COAL AND OTHER BEDDED MATERIAL EXTRACTION IT ALSO SUPPLIES AIR POLLUTION AND ASH HANDLING EQUIPMENT TO UTILITIES AND OTHER INDUSTRIAL CONCERNS 9306040022 930604 CREDIT RATINGS BANK OF NEW YORK CO NEW YORK STANDARD & POOR'S CORP UPGRADED ITS SENIOR AND SUBORDINATED DEBT RATINGS FOR THIS BANK COMPANY CITING THE REDUCTION IN THE RISK PROFILE OF THE COMPANY'S LOAN PORTFOLIO ABOUT 15 BILLION IN LONGTERM DEBT WAS AFFECTED THE RATINGS AGENCY SAID IT ALSO TOOK INTO CONSIDERATION A PENDING MERGER WITH NATIONAL COMMUNITY BANKS INC THIS TRANSACTION TO BE FINANCED THROUGH AN EXCHANGE OF COMMON STOCK EXTENDS BANK OF NEW YORK'S FRANCHISE INTO THE ADJACENT COUNTIES OF NORTHEASTERN NEW JERSEY AND PROVIDES SOME OPPORTUNITIES FOR OPERATING SYNERGIES S&P RAISED BANK OF NEW YORK'S SENIOR DEBT RATING TO SINGLEA FROM SINGLEAMINUS AND ITS SUBORDINATED DEBT RATING TO SINGLEAMINUS FROM TRIPLEBPLUS CBS INC NEW YORK STANDARD & POOR'S CORP SAID IT UPGRADED ITS RATING ON CBS'S 400 MILLION SENIOR DEBT TO SINGLEA FROM SINGLE AMINUS REFLECTING CONVERSION OF DEBT AND STRONG CASH FLOW THE UPGRADE REFLECTED BALANCE SHEET IMPROVEMENT BECAUSE OF THE RECENT CONVERSION OF 390 MILLION OF SUBORDINATED DEBT INTO EQUITY COUPLED WITH PROSPECTS FOR STRONGER EARNINGS AND CASH FLOW AT THE CBS TELEVISION NETWORK S&P SAID STRONG CASH FLOW OF THE OWNED AND OPERATED TV STATIONS AND GOOD BALANCE SHEET LIQUIDITY INCLUDING ABOUT 11 BILLION IN LIQUID BALANCES WERE IMPORTANT FACTORS AS WELL S&P SAID COMPUSA INC DALLAS HAD 85 MILLION SENIOR SUBORDINATED NOTES DUE 2000 RATED SINGLEBMINUS BY STANDARD & POOR'S CORP S&P SAID THE RATING WAS BASED ON THE VOLATILE PERSONAL COMPUTER RETAIL INDUSTRY COMPOUNDED BY AN AGGRESSIVE GROWTH STRATEGY AND THIN MEASURES OF CASH FLOW PROTECTION COMPUSA DECLINED TO COMMENT ON THE RATING HYDROQUEBEC QUEBEC MOODY'S INVESTORS SERVICE INC SAID IT LOWERED ITS LONGTERM DEBT RATINGS FOR THE PROVINCE OF QUEBEC AND FOR HYDROQUEBEC THE GOVERNMENTOWNED ELECTRIC UTILITY TO SINGLEA1 FROM DOUBLEA3 THE NEW YORK RATING AGENCY SAID THE CANADIAN PROVINCE'S TAXSUPPORTED DEBT HAS RISEN TO A LEVEL THAT IS NO LONGER CONSISTENT WITH HIGHGRADE CREDIT QUALITY BUT IT NOTED THAT THE FISCAL STRATEGY OUTLINED IN THE PROVINCE'S RECENT BUDGET REPRESENTS A RENEWED COMMITMENT TO ARREST FINANCIAL DETERIORATION AND PREVENT FURTHER EROSION IN CREDIT QUALITY OVER THE MEDIUM TERM RATINGS ON THE US COMMERCIAL PAPER PROGRAMS OF QUEBEC AND HYDROQUEBEC REMAIN UNCHANGED AT SINGLEP1 QUEBEC'S GROSS DIRECT AND GUARANTEED DEBT AMOUNTS TO ABOUT 98 BILLION CANADIAN DOLLARS US771 BILLION OF WHICH C33 BILLION WAS ISSUED BY HYDROQUEBEC AND IS SERVICED BY THE UTILITY'S NET REVENUE QUEBEC MINISTER OF FINANCE GERARD D LEVESQUE SAID THE GOVERNMENT'S FINANCIAL SITUATION DOESN'T JUSTIFY THIS REVISION 9306040021 930604 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 MARGARETTEN FINANCIAL CORP 150 MILLION OF NOTES DUE JUNE 15 2000 PRICED AS 675S AT 99899 TO YIELD 6768 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 1125 PERCENTAGE POINTS ABOVE THE TREASURY SEVENYEAR NOTE RATED BAA3 BY MOODY'S INVESTORS SERVICE INC AND TRIPLEBPLUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO PILGRIM'S PRIDE CORP 100 MILLION OF SENIOR SUBORDINATED 10875 NOTES DUE 2003 SOLD AS PART OF A PLAN TO CONSOLIDATE AND EXTEND THE COMPANY'S OUTSTANDING DEBT ACCORDING TO A SPOKESMAN PROCEEDS WILL BE APPLIED TO THE REDEMPTION OR PURCHASE OF ALL THE COMPANY'S OUTSTANDING 1425 SENIOR NOTES DUE 1995 AND TO THE REPAYMENT OF DEBT U S WEST COMMUNICATIONS INC 484 MILLION OF DEBENTURES DUE JUNE 15 2023 PRICED AS 75S AT 99221 TO YIELD 7566 ACCORDING TO MCM CORPORATEWATCH THE SIZE OF THE OFFERING WAS RAISED FROM A PLANNED 400 MILLION NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 07 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED DOUBLEA3 BY MOODY'S AND DOUBLEAMINUS BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY SALOMON BROTHERS INC U S WEST COMMUNICATIONS IS A UNIT OF U S WEST INC DISCOVERY ZONE INC INITIAL OFFERING OF 25 MILLION COMMON SHARES PRICED AT 22 APIECE THROUGH UNDERWRITERS LED BY MERRILL LYNCH & CO DISTRICT OF COLUMBIA 3464 MILLION GENERALOBLIGATION REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP INCLUDED IN THE ISSUE ARE 2016 MILLION SERIES 1993C BONDS FOR WASHINGTON DC WHICH ARE TO YIELD FROM 37 IN 1994 TO 59 IN 2005 THERE ARE ALSO 1448 MILLION SERIES 1993D BONDS PRICED TO YIELD FROM 37 IN 1994 TO 535 IN 2003 UNINSURED BONDS HAVE A SINGLEBAA RATING FROM MOODY'S AND A SINGLEAMINUS RATING FROM S&P THE FOLLOWING BONDS ARE INSURED BY THE FINANCIAL GUARANTY INSURANCE CO AND CARRY TRIPLEA RATINGS FROM MOODY'S AND S&P SERIES 1993C BONDS DUE IN 1995 2001 2003 AND 2004 AND SERIES 1993D BONDS DUE IN 1995 1999 AND 20002003 NEW YORK STATE DORMITORY AUTHORITY 7895 MILLION CITY UNIVERSITY REVENUE AND REFUNDING BONDS PRICED BY A GOLDMAN SACHS & CO GROUP INCLUDED IN THE OFFERING ARE THE FOLLOWING 3112 MILLION SERIES 1993A CONSOLIDATED REVENUE BONDS PRICED TO YIELD FROM 53 IN 2000 TO 605 IN 2018 3164 MILLION SERIES 1993A CONSOLIDATED SECOND GENERAL RESOLUTION REVENUE BONDS PRICED TO YIELD FROM 53 IN 2000 TO 605 IN 2018 AND 2020 675 MILLION 1993B REFUNDING BONDS PRICED TO YIELD FROM 55 IN 2002 TO 602 IN 2014 181 MILLION 1993C REFUNDING BONDS PRICED TO YIELD FROM 54 IN 2001 TO 6 IN 2012 227 MILLION 1993D REFUNDING BONDS PRICED TO YIELD FROM 54 IN 2001 TO 6 IN 2012 AND 537 MILLION 1993E REFUNDING BONDS PRICED TO YIELD FROM 515 IN 1999 TO 598 IN 2011 ALL OF THE BONDS ARE NONCALLABLE MOODY'S IS EXPECTED TO RATE THE ISSUE BAA1 AND S&P IS EXPECTED TO ASSIGN A TRIPLEB RATING OHIO MUNICIPAL ELECTRIC GENERATION AGENCY JOINT VENTURE 5 1587 MILLION BENEFICIALINTEREST CERTIFICATES PRICED BY A MORGAN STANLEY & CO GROUP YIELDS FOR THE 1993 SECURITIESWHICH ARE FOR THE BELLEVILLE HYDROELECTRIC PROJECTRANGE FROM 43 IN 1998 TO 568 IN 2016 AND 2024 THE JOINT VENTURE OF 42 PARTICIPANTS WAS ESTABLISHED TO FINANCE CONSTRUCT AND OPERATE A HYDROELECTRIC FACILITY AT EXISTING LOCKS AND A DAM ON THE OHIO RIVER PROCEEDS FROM THE SALE OF THE CERTIFICATES WILL ALSO BE USED FOR THE ACQUISITION OF RELATED PURCHASEDPOWER AND FOSSILFUEL BACKUPGENERATION FACILITIES THE PARTICIPANTS ARE PRIMARILY SMALL MUNICIPALITIES IN NORTHERN OHIO AMBAC INDEMNITY CORP IS INSURING THE CERTIFICATES THEY CARRY TRIPLEA RATINGS FROM BOTH MOODY'S AND S&P SEATTLE WASH 2564 MILLION WATERSYSTEM AND REFUNDINGREVENUE BONDS PRICED BY A MERRILL LYNCH & CO GROUP YIELDS RANGE FROM 25 IN DECEMBER 1993 TO 5825 IN 2023 BOTH MOODY'S AND S&P HAVE RATED THE BONDS DOUBLEA FEDERAL HOME LOAN MORTGAGE CORP 500 MILLION OF REAL ESTATE MORTGAGE INVESTMENT CONDUIT SECURITIES OFFERED BY UBS SECURITIES THE OFFERING SERIES 1548 IS BACKED BY THE AGENCY'S 30YEAR 7 MORTGAGE SECURITIES THE COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 77 AND WEIGHTED AVERAGE REMAINING TERM TO MATURITY OF 298 YEARS CHRYSLER CORP 12 BILLION OF AUTOLOAN ASSETBACKED CERTIFICATES PRICED IN FOUR PARTS THROUGH UNDERWRITERS LED BY FIRST BOSTON CORP ACCORDING TO MCM CORPORATEWATCH THE SELLER OF THE AUTOMOBILE AND LIGHTDUTYTRUCK RECEIVABLES IS CHRYSLER FINANCIAL CORP A CHRYSLER UNIT THE LOAN SERVICER IS CHRYSLER CREDIT CORP THE 252 MILLION IN CLASS A1 FIXEDRATE CERTIFICATES WAS PRICED AS 3375S AT PAR THE CERTIFICATES WITH A 044YEAR AVERAGE LIFE AND A LEGAL MATURITY OF JUNE 15 1994 WERE RATED PRIME1 BY MOODY'S AND SINGLEA1PLUS BY S&P THE 403 MILLION IN CLASS A2 FLOATINGRATE CERTIFICATES WERE PRICED AT PAR TO FLOAT 15 BASIS POINTS ABOVE THE ONEMONTH LONDON INTERBANK OFFERED RATE THE CERTIFICATES WITH A 134YEAR AVERAGE LIFE WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE CERTIFICATES DO NOT PAY PRINCIPAL FOR EIGHT MONTHS THE 497 MILLION IN CLASS A3 FIXEDRATE CERTIFICATES WERE PRICED AS 49S AT 99 30/32 TO YIELD 4973 A 47BASISPOINT SPREAD ABOVE THE TREASURY'S THREEYEAR NOTE THE CERTIFICATES WITH A 309YEAR AVERAGE LIFE AND A LEGAL MATURITY OF DEC 15 1998 WERE RATED TRIPLEA BY BOTH MOODY'S AND S&P THE CERTIFICATES DO NOT PAY PRINCIPAL FOR 23 MONTHS THE 48 MILLION IN CLASS B FIXEDRATE CERTIFICATES WERE PRICED AS 515S AT 99 31/32 TO YIELD 522 A 95BASISPOINT SPREAD ABOVE COMPARABLE TREASURYS THE CERTIFICATES HAVE A 237YEAR AVERAGE LIFE AND WERE RATED SINGLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P THEY DO NOT PAY PRINCIPAL FOR NINE MONTHS SAPPORO BREWERIES LTD JAPAN 40 BILLION YEN OF 1375 CONVERTIBLE EUROBONDS DUE JUNE 30 2000 AT ISSUE PRICE PAR VIA YAMAICHI INTERNATIONAL EUROPE LTD CONVERTIBLE INTO ORDINARY SAPPORO SHARES FROM JULY 8 1993 TO JUNE 20 2000 AT INDICATED CONVERSION PREMIUM OF 25 PUT OPTION EXERCISABLE ON JUNE 30 1998 AT PAR CALL OPTION IS EXERCISABLE FROM JULY 1 1994 AT 103 DECLINING BY 05 ANNUALLY TO 1005 IN 1999 BUT NOT UNLESS SHARE PRICE TRADING AT LEAST 130 ABOVE CONVERSION PRICE FINAL TERMS SET JUNE 8 1993 SAPPORO SHARES CLOSED YESTERDAY IN TOKYO AT 1080 YEN FEES 25 POINTS NACIONAL FINANCIERA SNC GRAND CAYMAN BRANCH MEXICO 100 MILLION OF COLLARED FLOATINGRATE EURONOTES DUE JULY 1998 REOFFERED AT PAR VIA SAMUEL MONTAGU & CO INTEREST FLOATS AT 025 POINT ABOVE SIXMONTH LONDON INTERBANK OFFERED RATE FOR US DOLLARS SUBJECT TO MINIMUM 6625 MAXIMUM 10 GUARANTOR UNITED MEXICAN STATES FEES 075 POINT PEOPLE'S CONSTRUCTION BANK OF CHINA CHINA 120 MILLION OF FLOATINGRATE EURONOTES VIA JP MORGAN SECURITIES LTD ISSUE DIVIDED INTO TWO TRANCHES 50 MILLION OF NOTES DUE JULY 1998 PAYING INTEREST SEMIANNUALLY AT 50 BASIS POINTS ABOVE LIBOR FOR US DOLLARS AT ISSUE PRICE PAR FEES 0265 POINT ALSO 70 MILLION OF NOTES DUE JULY 2000 PAYING INTEREST SEMIANNUALLY AT 60 BASIS POINTS ABOVE LIBOR AT PRICE OF PAR FEES 0325 POINT REPUBLIC OF PORTUGAL SOVEREIGN 15 BILLION MARKS OF 7125 EUROBONDS DUE JULY 2 2003 AT ISSUE PRICE 101975 VIA JOINT LEAD UNDERWRITERS DRESDNER BANK AG AND COMMERZBANK AG REOFFERED AT 998 TO YIELD 715 SPREAD 28 BASIS POINTS ABOVE GERMAN GOVERNMENT'S 675 BUND DUE 2003 FEES 25 POINTS SCHIPHOL AIRPORT NV NETHERLANDS 400 MILLION DUTCH GUILDERS OF 675 EUROBONDS DUE JULY 5 2000 AT ISSUE PRICE 1006 VIA ING BANK NV REOFFERED AT 998 TO YIELD 6787 ANNUAL SPREAD 15 BASIS POINTS ABOVE 9 DUTCH STATE LOAN DUE MAY 2000 FEES 1 POINT SOCIETE GENERALE AUSTRALIA LTD FRENCH PARENT 100 MILLION AUSTRALIAN DOLLARS OF 7 EUROBONDS DUE JULY 22 1998 AT ISSUE PRICE 10095 VIA HAMBROS BANK LTD YIELD 723 AT BREAKEVEN PRICE FOR COMANAGING BANKS GUARANTOR SOCIETE GENERALE FEES TWO POINTS TOYOTA MOTOR CREDIT CORP JAPANESE PARENT 100 MILLION SWISS FRANCS OF 475 PRIVATELY PLACED NOTES DUE JULY 2 1998 PRICED AT 102 VIA BANQUE PARIBAS SUISSE FEES 15 POINTS WORLD BANK SUPRANATIONAL 150 MILLION OF 725 EUROBONDS DUE DEC 15 1998 REOFFERED AT 99582 VIA BARCLAYS DE ZOETE WEDD SECURITIES LTD BONDS WILL TRADE INTERCHANGEABLY WITH 200 MILLION OF IDENTICAL OUTSTANDING NOTES LAUNCHED IN NOVEMBER 1992 NEW BONDS YIELD 7331 ANNUAL SPREAD 14 BASIS POINTS ABOVE 725 GILT DUE 1998 FEES 025 POINT 9306040020 930604 BUSINESS BRIEF READER'S DIGEST ASSOCIATION INC US WORK FORCE TO BE CUT BY 250 JOBS OR 10 OF TOTAL READER'S DIGEST ASSOCIATION INC PLEASANTVILLE NY SAID IT WILL CUT 250 JOBS OR 10 OF ITS US WORK FORCE OVER THE NEXT 15 MONTHS IN AN EFFORT TO STREAMLINE AND STAY COMPETITIVE THE PUBLISHER AND DIRECT MARKETER DIDN'T SPECIFY HOW MUCH IT WOULD COST TO MAKE THE CUTS OR HOW MUCH THE CUTS WILL SAVE ANNUALLY A SPOKESMAN SAID ABOUT 100 OF THE 250 JOBS ARE BEING ELIMINATED AS OF JUNE 30 HE ESTIMATED THAT 200 OF THE 250 AFFECTED JOBS ARE IN CUSTOMER SERVICE AND FULFILLMENT DEPARTMENTS AND THE OTHERS INVOLVE WORK IN UPDATING COMPUTER FILES THE COMPANY WILL USE OUTSIDE CONTRACTORS TO DO THOSE JOBS THE SPOKESMAN SAID SALARIED EMPLOYEES LOSING THEIR JOBS WILL GET SEVERANCE OF AS MUCH AS FOUR WEEKS OF PAY FOR EACH YEAR OF SERVICE UP TO A MAXIMUM OF TWO YEARS' SALARY HOURLY WORKERS WILL RECEIVE TWO WEEKS OF PAY FOR EVERY YEAR OF SERVICE UP TO A YEAR'S SALARY THE SPOKESMAN COULDN'T GIVE AN ESTIMATE AS TO HOW MUCH THE COMPANY WOULD PAY IN TOTAL SEVERANCE 9306040019 930604 LETTERS TO THE EDITOR BUM ADVICE THEN BUM ADVICE NOW YOUR MAY 12 CAPITOL JOURNAL REPORTS THAT SEN BILL BRADLEY OF NEW JERSEY IS URGING PRESIDENT CLINTON TO PUT ALL HIS ENERGIES INTO RAISING TAXES TO CUT THE FEDERAL DEFICIT VIA A NEW BRADLEY IDEA A DEDICATED TRUST FUND THE WHITE HOUSE REPORTS THE PRESIDENT LIKES THE IDEA I DON'T ONE OF THE REASONS I AM RUNNING FOR THE REPUBLICAN NOMINATION FOR GOVERNOR IN NEW JERSEY CAN BE TRACED BACK TO BILL BRADLEY'S BUM ADVICE IT WAS IN 1989 THAT MR BRADLEY URGED HIS FELLOW DEMOCRATS IN THE SENATE TO BLOCK A VOTE ON PRESIDENT BUSH'S PROPOSAL TO CUT THE CAPITAL GAINS TAX TO 15 AND TO INDEX CAPITAL GAINS AGAINST INFLATION MR BRADLEY'S ADVICE WAS TAKEN THE VOTE WAS BLOCKED AND THE DOW AVERAGE DROPPED ALMOST 100 POINTS ON THE DAY THE WHITE HOUSE THREW IN THE TOWEL OCT 13 1989 AT THAT TIME THE UNEMPLOYMENT RATE IN NEW JERSEY WAS BELOW 4 WHICH COULD BE ATTRIBUTED TO THE GROWTH POLICIES OF PRESIDENT REAGAN AND NEW JERSEY GOV TOM KEAN WHEN THE NATION SLID INTO RECESSION AFTER GETTING THE BENEFIT OF BILL BRADLEY'S ADVICE TAX REVENUES DECLINED IN TRENTON AS THEY DID EVERYWHERE ELSE THE SENATOR'S GOOD FRIEND GOV JIM FLORIO THEN PUT ALL OF HIS ENERGIES INTO RAISING TAXES BY 28 BILLION GOV FLORIO DID THIS AFTER PROMISING THE VOTERS IN HIS '89 CAMPAIGN HE WOULD NOT RAISE TAXES THE UNEMPLOYMENT RATE IN NEW JERSEY IS NOW 91 AMONG THE HIGHEST OF ALL THE INDUSTRIAL STATES THANKS TO THE ONETWO PUNCH OF MESSRS BRADLEY AND FLORIO IF PRESIDENT CLINTON CONTINUES TO TAKE THIS KIND OF ADVICE ABOUT CLOSING THE FEDERAL DEFICIT THE UNEMPLOYMENT RATE IN NEW JERSEY WILL GO TO THE MOON 9306040018 930604 MARKETING & MEDIA WALL STREET JOURNAL WRITER LIPMAN WINS JOHN HANCOCK AWARD BOSTON WALL STREET JOURNAL WRITER JOANNE LIPMAN WAS HONORED FOR HER ADVERTISING COLUMN IN THE ANNUAL COMPETITION SPONSORED BY JOHN HANCOCK FINANCIAL SERVICES MS LIPMAN WAS HONORED FOR EXCELLENCE IN BUSINESS AND FINANCIAL JOURNALISM IN THE FINANCIALBUSINESS COLUMNIST CATEGORY THE JUDGES NOTED HER COLUMNS EXAMINED THE FACT THAT SUBARU'S HIGHLY TOUTED AD CAMPAIGN WASN'T SELLING CARS THAT BOOK PUBLISHERS FALSELY CLAIM BOOKS ARE BESTSELLERS AND THAT THE ADVERTISING INDUSTRY FAILED IN ITS EFFORT TO SQUELCH NEGATIVE POLITICAL ADVERTISING IN THE 1992 PRESIDENTIAL CAMPAIGN THIS IS THE NINTH TIME THE WALL STREET JOURNAL HAS RECEIVED A HANCOCK AWARD MS LIPMAN WHO INITIATED THE ADVERTISING COLUMN IN FEBRUARY 1989 JOINED THE JOURNAL IN 1983 AS A REPORTER SHE COVERED INSURANCE AND REAL ESTATE BEFORE MOVING TO THE ADVERTISING BEAT IN MAY 1986 LAST MARCH SHE WAS NAMED A SPECIAL WRITER ON THE JOURNAL'S PAGE ONE STAFF THE WALL STREET JOURNAL IS PUBLISHED BY DOW JONES & CO DOW JONES ALSO PUBLISHES BARRON'S MAGAZINES COMMUNITY NEWSPAPERS AND OTHER PUBLICATIONS NEWSWIRES AND ELECTRONICINFORMATION SERVICES THE SEVEN AWARDS WHICH EACH INCLUDE A 5000 PRIZE WILL BE PRESENTED IN THE FALL IN NEW YORK AT A PROGRAM COSPONSORED BY JOHN HANCOCK AND FORDHAM UNIVERSITY'S GRADUATE SCHOOL OF BUSINESS OTHER WINNERS MAGAZINES OF GENERAL INTEREST WILLIAM STERNBERG WRITING FOR THE ATLANTIC MAGAZINE ITS THIRD AWARD FOR AN INDEPTH EXAMINATION OF WHY THE AUDITING SYSTEM IN THE US HAS FAILED TO PROTECT INVESTORS AND TAXPAYERS WRITERS FOR FINANCIALBUSINESS NEWSPAPERS AND MAGAZINES G DAVID WALLACE AND A TEAM FROM BUSINESS WEEK MAGAZINE FOR A SPECIAL ISSUE TITLED REINVENTING AMERICA THE NINTH HANCOCK AWARD FOR THE MAGAZINE NEWSPAPERS WITH CIRCULATION ABOVE 300000 SCOT PALTROW OF THE LOS ANGELES TIMES FOR HIS INVESTIGATIVE SERIES INVESTORS AT RISK DOCUMENTING WIDESPREAD FRAUD AGAINST SMALL INVESTORS BY BROKERAGE FIRMS THE NEWSPAPER'S EIGHTH AWARD NEWSPAPERS WITH CIRCULATION BETWEEN 100000 AND 300000 FRED SCHULTE OF THE FORT LAUDERDALE FLA SUNSENTINEL FOR A SERIES DOCUMENTING TELEMARKETING SCHEMES THAT HAVE VICTIMIZED MORE THAN TWO MILLION PEOPLE FOR MORE THAN 800 MILLION NEWSPAPERS WITH CIRCULATION UNDER 100000 WILLIAM LEVESQUE OF THE LEDGER LAKELAND FLA FOR A SERIES ARGUING THAT A MANUFACTURER KNEW ITS FUNGICIDE MIGHT KILL PLANTS BUT CONTINUED TO SELL IT EVENTUALLY HELPING TO DESTROY FLORIDA CROPS DEADLINE NEWS A TEAM FROM THE HARTFORD COURANT FOR COVERAGE OF UNITED TECHNOLOGIES CORP'S ANNOUNCEMENT THAT IT WAS ELIMINATING 13900 JOBS CLOSING OR CONSOLIDATING 100 FACILITIES AND CUTTING COSTS BY MORE THAN 1 BILLION 9306040017 930604 MET LIFE IN SWITCH OF STRATEGY PLANS TO PRESS FOR SALES TO AFFLUENT CUSTOMERS BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK METROPOLITAN LIFE INSURANCE CO THE LARGEST PROVIDER OF LIFE INSURANCE TO THE MIDDLE CLASS IS TARGETING UPPERINCOME INDIVIDUALS AS A NEW MARKET THE MOVE THAT BEGINS THIS MONTH COULD CHANGE THE COMPETITIVE LANDSCAPE OF THE LIFE INSURANCE BUSINESS EXPERTS SAY METROPOLITAN'S NEW MARKETING CAMPAIGN THEY NOTE TAKES AIM AT WINNING MARKET SHARE FROM CIGNA CORP EQUITABLE COS AND OTHER BIG INSURERS THAT CATER TO WELLTODO POLICYHOLDERS MET CAN MAKE THE COMPETITIVE PROFILE OF THAT MARKET MUCH MORE INTENSE SAID LARRY MAYEWSKI A SENIOR VICE PRESIDENT OF AM BEST CO AN INSURANCE INDUSTRY RATING CONCERN HE ESTIMATED THE AFFLUENT MARKET ACCOUNTS FOR ABOUT 10 OF PREMIUM VOLUME IN THE 275 BILLIONAYEAR US LIFE INSURANCE INDUSTRY HE ADDED THAT THE MARKET FOR WEALTHY POLICYHOLDERS WILL CONTINUE TO GROW AS THE POPULATION AGES AND PLANS FOR RETIREMENT MET IS GOING AFTER CUSTOMERS WITH ANNUAL INCOME OF BETWEEN 150000 AND 200000 AND NET WORTH OF 3 MILLION OR HIGHER THE AVERAGE FACE AMOUNT OF POLICIES SOLD UNDER THE PROGRAM WILL EXCEED 1 MILLION MORE THAN 10 TIMES MET'S AVERAGE POLICY SIZE ACCORDING TO AM BEST MET IS THE NATION'S SECOND LARGEST LIFE INSURANCE COMPANY BEHIND PRUDENTIAL INSURANCE CO OF AMERICA IN ASSETS BUT HAS MORE INSURANCE IN FORCE THAN THE PRU MET'S TIES TO THE MIDDLE CLASS CAN BE SEEN BY LOOKING AT THE AVERAGE SIZE OF THE POLICY IT ISSUES MET'S AVERAGE POLICY SIZE OF 91690 LAST YEAR COMPARED WITH 206485 AT EQUITABLE COS AND 246185 AT CONNECTICUT GENERAL LIFE INSURANCE CO A UNIT OF CIGNA MET ALREADY HAS AN ARSENAL OF PRODUCTS RANGING FROM MUTUAL FUNDS TO ANNUITIES CREATED OVER RECENT YEARS FOR UPSCALE CUSTOMERS BUT IT HAS NEVER MARKETED THEM AGGRESSIVELY IN FACT ITS AGENTS WERE EVEN ORDERED TO STAY AWAY FROM PROMOTING PERSONAL POLICIES TO EXECUTIVES WHO WORKED FOR COMPANIES THAT BOUGHT MET PRODUCTS SUCH AS GROUP LIFE AND HEALTH INSURANCE IN EFFECT THE UPSCALE POLICIES WERE THERE IF ANYONE ASKED BUT WERE NOT SOLD ACTIVELY NOW MET THROUGH A PROGRAM CALLED VIP SERVICES HAS LIFTED THE RESTRICTIONS AND WILL TARGET EXECUTIVES AND OTHERS WITH SOPHISTICATED TAX INVESTMENT AND ESTATE PLANNING NEEDS WE WILL BE AGGRESSIVELY PURSUING A MARKET WE HAVEN'T FOCUSED ON IN THE PAST SAID ARTHUR SPECTOR VICE PRESIDENT OF PERSONAL INSURANCE FOR MET WE HAD BEEN LETTING THE CUSTOMERS GO TO OTHER COMPANIES SOME 500 OF MET'S 13000 AGENTS HAVE BEEN PICKED TO JOIN THE PROGRAM AND THEY ARE GETTING ADDITIONAL TRAINING IN FINANCIAL AND ESTATE PLANNING THEY WILL ALSO GET SUPPORT FROM TAX ATTORNEYS ACTUARIES AND FINANCIAL CONSULTANTS MET HOPES TO REPEAT THE SUCCESS OF OTHER INSURERS IN THE AFFLUENT MARKET TWO YEARS AGO HARTFORD CONNBASED AETNA LIFE & CASUALTY CO BEGAN TO OFFER NEW PRODUCTS AND RECRUIT AGENTS TO PURSUE WEALTHIER CUSTOMERS BEFORE THEN AETNA REGARDED LIFE INSURANCE AS MERELY AN EXTRA PRODUCT IT COULD SELL CAR INSURANCE CUSTOMERS AND HADN'T GIVEN MUCH THOUGHT TO HOW TO INCREASE THE SEGMENT SAID STEVEN PUTTERMAN AETNA ASSISTANT VICE PRESIDENT MR PUTTERMAN SAID AETNA'S UPSCALE OPERATION EXPECTS TO REPORT 55 MILLION IN NEW PREMIUMS THIS YEAR COMPARED WITH TOTAL INDIVIDUAL LIFE INSURANCE PREMIUMS OF 300 MILLION COMPANYWIDE AETNA EXPECTS TO POST 100 MILLION IN NEW PREMIUMS WITHIN FIVE YEARS FROM THIS NEW PROGRAM WE ARE LOOKING FOR SUBSTANTIAL GROWTH MR PUTTERMAN SAID NEWARK NJBASED PRUDENTIAL ANOTHER COMPANY SPECIALIZING IN THE MIDDLECLASS CUSTOMER ROLLED OUT A SECONDTODIE LIFE INSURANCE POLICY A POLICY FOR ESTATE PLANNING TWO YEARS AGO AND NOW IS ONE OF THE LARGEST SELLERS IN THAT MARKET OFFICIALS AT OTHER COMPANIES BELIEVE MET WILL FIND A LOT OF COMPETITION THEIR DISTRIBUTION FORCE HAS NEVER BEEN UPSCALE SAID CAESER RABOY VICE PRESIDENT FOR SUN LIFE ASSURANCE CO OF CANADA IN WELLESLEY HILLS MASS YOU DON'T JUST WAVE A MAGIC WAND AND GET THEM TO FOCUS ON THAT MARKET MET IS A FORMIDABLE COMPETITOR BUT THIS DOESN'T AFFECT US GREATLY 9306040016 930604 THE COMMISSION GAP WIDENS BY GEORGETTE JASEN INVESTORS WHO USE DISCOUNT BROKERAGE FIRMS ARE SAVING MORE THAN EVER BEFORE THE LATEST SURVEY BY MERCER INC A NEW YORK FIRM THAT MONITORS DISCOUNT BROKERS SHOWS THAT THE LEAST EXPENSIVE DEEPDISCOUNT BROKERS LOWERED PRICES SINCE DECEMBER 1991 WHILE FULLSERVICE BROKERS RAISED COMMISSIONS BETWEEN 7 AND 10 THE BIG THREE DISCOUNTERS CHARLES SCHWAB & CO FIDELITY BROKERAGE SERVICES AND QUICK & REILLY GROUP INC FALL SOMEWHERE IN BETWEEN THEY RAISED PRICES ABOUT 2 IN THE PAST YEAR ACCORDING TO MERCER'S DATA THE PRICE DIFFERENCE ON SPECIFIC TRANSACTIONS CAN BE ENORMOUS BUYING OR SELLING 500 SHARES OF A 40 STOCK FOR INSTANCE WOULD COST 385 AT A FULLSERVICE BROKER BETWEEN 109 AND 144 AT THE BIG THREE DISCOUNTERS AND AS LITTLE AS 29 AT THE LOWEST PRICE DISCOUNT BROKER THE GAP IS CONSIDERABLY NARROWER ON OTHER TRADES 100 SHARES OF A 40 STOCK FOR INSTANCE WOULD COST JUST 98 AT A FULL SERVICE BROKER BETWEEN 49 AND 55 AT THE BIG THREE AND 28 AT THE LOWEST PRICE DEEP DISCOUNTER 9306040015 930604 BUSINESS BRIEF PSI RESOURCES INC TECHNICAL EXCHANGE ACCORD SET WITH CHINA'S HUANENG PSI RESOURCES INC PLAINFIELD IND SAID ITS PSI ENERGY UNIT SIGNED A THREEYEAR EXCHANGE AGREEMENT WITH HUANENG INTERNATIONAL POWER DEVELOPMENT CORP UNDER THE PACT THE UTILITY AND THE CHINESE POWERDEVELOPMENT ORGANIZATION WILL SHARE TECHNICAL INFORMATION AND EXCHANGE PERSONNEL TO STUDY EACH OTHERS' OPERATIONS PSI RESOURCES IS ONE OF A NUMBER OF US ELECTRIC UTILITIES THAT ARE INCREASINGLY LOOKING FOR GROWTH OPPORTUNITIES ABROAD IT'S A MEMBER OF A CONSORTIUM OF US ELECTRIC CONCERNS THAT LAST YEAR ACQUIRED A STAKE IN TWO ARGENTINE UTILITIES AND IT ALSO CURRENTLY HAS IN PLACE A SIMILAR EXCHANGE AGREEMENT WITH TOKYO ELECTRIC POWER CO 9306040014 930604 WORLD MARKETS HONG KONG'S HANG SENG INDEX TUMBLES 16694 AS COLONY'S LINKS TO CHINA LOOK THREATENING BY ROBERT STEINER STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG LAST JUNE WHEN FOREIGN INVESTORS POURED INTO THE HONG KONG STOCK MARKET THE BRITISH COLONY WORE ITS LINKS WITH CHINA LIKE GOLD MEDALS THIS JUNE THOSE TIES THREATEN TO BECOME AN ALBATROSS AROUND ITS NECK WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS YESTERDAY THE DOW JONES WORLD STOCK INDEX WAS AT 10861 UP 041 REFLECTING INCREASES IN MARKETS IN ASIA/PACIFIC AND AN EASING IN EUROPE SHARES OF AUTO MANUFACTURERS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 12716 UP 299 OR 241 WITH JAPAN'S MITSUBISHI MOTORS POSTING AN 608 GAIN IN ITS LOCAL CURRENCY AIR FREIGHT STOCKS TRAILED AT 10199 DOWN 431 OR 406 WITH FEDERAL EXPRESS OF THE US SLIDING 877 IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ADVANCED 10029 POINTS WEDNESDAY SOARED 38430 TO 21076 ON FRIDAY THE NIKKEI ADDED 803 POINTS TO CLOSE THE MORNING SESSION AT 2108403 THURSDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 600 MILLION SHARES UP FROM 4331 MILLION SHARES ON WEDNESDAY THE ADVANCE WAS BROADLY BASED WITH GAINERS OVERWHELMING LOSERS 856215 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH ROSE 821 POINTS WEDNESDAY SURGED 3067 ALSO 19 TO 167613 IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX DROPPED 102 POINTS TO 28528 WITH 62 SHARES FALLING AND 32 RISING THE FT 30STOCK INDEX FELL 48 POINTS TO 22254 VOLUME WAS A LIGHT 5679 MILLION SHARES COMPARED WITH 6019 MILLION SHARES A DAY EARLIER MOST BRITISH PROPERTY ISSUES DECLINED AS INVESTORS REASSESSED THE PREVIOUS DAY'S SURGE IN THE SECTOR SPURRED BY NEWS THAT THE INVESTOR GEORGE SOROS WAS SETTING UP A PROPERTY INVESTMENT VEHICLE BUT SUGGESTIONS EMERGED THAT MR SOROS MAY HAVE A LONGERTERM INTEREST RATHER THAN A GOAL OF QUICK PROFITS LONDON STOCKS ALSO WERE DRAGGED DOWN BY WALL STREET'S WEAK PERFORMANCE EARLY YESTERDAY AND BY NEWS OF WEAK GERMAN ECONOMIC GROWTH FIGURES WESTERN GERMAN GROSS DOMESTIC PRODUCT IN THE FIRST QUARTER CONTRACTED 32 FROM A YEAR EARLIER DETERIORIATING EUROPEAN ECONOMIES COULD HURT BRITISH COMPANIES WITH BIG OPERATIONS IN GERMANY AND FRANCE IN FRANKFURT PRICES FINISHED MIXED IN ANOTHER SESSION SHORT ON MARKETMOVING NEWS THE DAX 30STOCK ROSE 437 POINTS TO CLOSE AT 162958 THE MARKET FOCUSED PRIMARILY ON THE WESTERN GERMAN GDP REPORT THOUGH REACTION WAS SOMEWHAT MUTED AND ON THE DECISION BY THE BUNDESBANK TO LEAVE INTEREST RATES UNCHANGED THE GERMAN GDP DATA AND STEADY MONETARY POLICY ALSO DISCOURAGED INVESTORS IN PARIS WHERE STOCKS FELL IN MILAN PRICES DECLINED ON WEAKNESS IN THE AUTO SECTOR BUT TRADING WAS THIN AHEAD OF SUNDAY MAYORAL ELECTIONS IN SEVERAL ITALIAN CITIES 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 9306040013 930604 POLITICS & POLICY CLINTON HAS YET TO REACH DECISION ON MINIMUM WAGE WASHINGTON DESPITE PRESSURE FROM SOME CONGRESSIONAL DEMOCRATS AND LABOR UNIONS THE CLINTON ADMINISTRATION STILL HASN'T DECIDED WHEN TO PRESS FOR AN INCREASE IN THE MINIMUM WAGE PRESIDENT CLINTON AND LABOR SECRETARY ROBERT REICH HAVE REPEATEDLY SAID THEY FAVOR A BASE WAGE HIGHER THAN THE CURRENT 425 AN HOUR BUT NEITHER HAS ADOPTED A PLAN FOR WHEN TO GENERATE LEGISLATION TO LIFT THE RATE THERE HAS NOT AS YET BEEN A SCHEDULE SET OR AN AMOUNT BY WHICH THE MINIMUM WAGE WOULD BE RAISED SAID MARY MEAGHER A SPOKESWOMAN FOR THE LABOR DEPARTMENT INDEED MR REICH HAS SAID IN PUBLIC FOR SEVERAL MONTHS THAT A WAGE INCREASE WOULD BE DELAYED UNTIL THE ECONOMY STRENGTHENED SEVERAL MEMBERS OF CONGRESS NOTABLY MINNESOTA DEMOCRAT PAUL WELLSTONE IN THE SENATE AND INDEPENDENT BERNARD SANDERS OF VERMONT IN THE HOUSE HAVE OFFERED BILLS THAT WOULD RAISE THE MINIMUM WAGE BUT CONGRESSIONAL LEADERS CONSUMED WITH THE CLINTON BUDGET AND HEALTHCARE OVERHAUL PLANS HAVE LONG SAID THAT NOTHING WILL MOVE BEFORE NEXT YEAR ANY ATTEMPT TO RAISE THE WAGE WOULD GENERATE OPPOSITION FROM THE BUSINESS COMMUNITY PARTICULARLY RETAILERS HOTELS AND RESTAURANTS WHO HAVE MANY REPUBLICAN CONGRESSIONAL LEADERS ON THEIR SIDE 9306040012 930604 TRACKING TRAVEL BY JONATHAN DAHL THE SLUMP IN BUSINESS TRAVEL PROVING SURPRISINGLY STUBBORN CONTINUED THROUGH ALL OF LAST YEAR AND MAY BE DRAGGING INTO 1993 AFTER THE GULF WAR AND A STEEP SLIDE IN BUSINESS TRAVEL IN 1991 MANY AIRLINE AND TRAVEL ANALYSTS THOUGHT BUSINESS TRAVEL HAD REBOUNDED AT LEAST SLIGHTLY LAST YEAR BUT MORE THAN 25 OF THE COUNTRY'S TOP 100 MANUFACTURING COMPANIES CUT THEIR TRAVEL SPENDING IN 1992 ACCORDING TO A SURVEY BY CORPORATE TRAVEL A TRADE PUBLICATION SPENDING WAS FLAT AT 70 AND ONLY 5 RAISED OUTLAYS IT JUST SHOWS HOW HARD BUSINESSES ARE TRYING TO HOLD COSTS WHEREVER THEY CAN SAYS RUDY MONTELEONE CHAIRMAN OF THE ASSOCIATION OF CORPORATE TRAVEL EXECUTIVES WHICH REPRESENTS CORPORATE TRAVEL MANAGERS SO FAR THIS YEAR HE SAYS WE'RE LOOKING AT THE SAME THING IT'S A TOUGH TIME FOR TRAVEL BUDGETS THE SURVEY CONTRASTS WITH WHAT SEEMED LIKE PROMISING FIGURES FROM THE AIRLINE INDUSTRY AIRLINE TRAFFIC ROSE 67 IN 1992 FROM THE PREVIOUS YEAR AND INCREASED 53 IN THE FIRST FOUR MONTHS OF 1993 FROM THE YEAREARLIER PERIOD SIMILARLY OCCUPANCY RATES AT THE NATION'S HOTELS ROSE 27 IN 1992 THE INDUSTRY'S BIGGEST INCREASE IN MORE THAN A DECADE BUT THOSE INCREASES APPARENTLY CAME MORE FROM LEISURE TRAVELERS AND SOME CAME DURING THE HALFPRICE FARE WARS OF LAST SUMMER THAT'S PARTICULARLY BAD NEWS FOR AIRLINES SINCE BUSINESS TRAVELERS USUALLY PAY MUCH HIGHER FARES AIRLINES STILL SAY THEY'RE SEEING A REBOUND IN BUSINESS TRAVEL THIS YEAR YOU CAN'T HAVE THE KIND OF INCREASES IN TRAVEL WE'RE GETTING IN A MONTH LIKE APRIL WITHOUT SOME OF IT COMING FROM BUSINESS TRAVELERS A SPOKESMAN FOR DELTA AIR LINES SAYS BUT MR MONTELEONE SAYS COMPANIES ARE SCRUTINIZING THE NEED TO SEND MORE THAN ONE EMPLOYEE TO MANY SALES AND BUSINESS MEETINGS AND ARE OPTING FOR MORE VIDEO CONFERENCES A FEW YEARS AGO AS COMPANIES EXPANDED GLOBAL OPERATIONS INTERNATIONAL BUSINESS TRAVEL BOOMED OVERSEAS TRIPS ARE WAY DOWN TOO MR MONTELEONE SAYS DOLLAR RENT A CAR SYSTEMS HAS COME UP WITH A CATCHY PHRASE FOR ITS ADS RIGHT ON THE AIRPORT RIGHT ON THE MONEY BUT THE AD ISN'T RIGHT ON TARGET THE POINT OF THE AD A COMPANY OFFICIAL SAYS IS TO EMPHASIZE THAT DOLLAR OFFERS THE CONVENIENCE OF BEING LOCATED IN AIRPORT TERMINALS WITHOUT CHARGING AS MUCH AS ITS COMPETITORS BUT DOLLAR ISN'T ON AIRPORT IN 15 OF THE TOP 100 AIRPORT MARKETS INSTEAD IT OPERATES OFF AIRPORT OR NOT AT ALL IN THOSE OTHER LOCATIONS AND IT IS OFF AIRPORT IN A FEW OF THE LARGEST AIRPORT MARKETS DALLAS WASHINGTON AND MINNEAPOLIS IT IMPLIES THEY'RE IN EVERY AIRPORT TERMINAL AND THEY SHOULD JUST BE HONEST AND ADMIT THEY'RE NOT SAYS MICHAEL ASHINGTONPICKETT EDITOR OF A CONSUMER NEWSLETTER IN ORLANDO FLA BEARING HIS NAME HE SAYS MANY TRAVELERS IN A HURRY CARE A GREAT DEAL WHETHER A COMPANY IS OPERATING INSIDE AN AIRPORT TERMINAL SOME OFFAIRPORT AGENCIES ARE MILES AWAY FOR SOME PEOPLE BEING OFF AIRPORT IS A BIG MINUS HE SAYS A SPOKESWOMAN FOR DOLLAR A CHRYSLER UNIT SAYS THE COMPANY CONSIDERS ITSELF TO BE AN ONAIRPORT OPERATOR BECAUSE THE VAST MAJORITY OF ITS AGENCIES ARE IN AIRPORT TERMINALS NOBODY HAS EVER QUESTIONED US ABOUT THE AD OR COMPLAINED THE SPOKESWOMAN SAYS WE DON'T SEE ANY PROBLEM WITH IT ALL JUST WHEN IT LOOKED AS IF THE CARRENTAL INDUSTRY MIGHT IN ESSENCE DROP DROPOFF CHARGES THE FEES HAVE QUIETLY RESURFACED BUT TRAVELERS HAVE BEGUN TO NOTICE THAT ONEWAY RATES AREN'T ALWAYS A BARGAIN SOMETIMES THEY CAN COST MORE THAN PAYING DROPOFF FEES IT WOULD COST 623 TO RENT A MIDSIZE CAR IN RALEIGH NC FOR A WEEK AND DROP IT IN GREENSBORO USING HERTZ'S DAILY ONEWAY RATE OF 89 THERE BY COMPARISON THE COMPANY HAS A 199 WEEKLY RATE FOR A MIDSIZE CAR IN RALEIGH WITH A DROPOFF FEE OF 150 IN GREENSBORO HERTZ SAYS ONEWAY RATES ARE CHEAPER THAN DROPOFF CHARGES IN SOME OTHER LOCATIONS AND ARE DESIGNED MAINLY FOR SHORTTERM RENTALS AND IT SAYS IT ALWAYS OFFERS CONSUMERS THE BETTER DEAL DROPOFF FEES VARY BY COMPANY AND ARE A BIG SOURCE OF CONFUSION FOR TRAVELERS ALAMO RENT A CAR CHARGES NO DROPOFF FEE BETWEEN MANY CITIES IN FLORIDA BUT CHARGES AS MUCH AS 1500 TO DROP OFF A CAR FROM ONE END OF THE COUNTRY AT THE OTHER END BUDGET RENT A CAR CHARGES A FLAT RATE OF 399 A WEEK FOR DROPOFFS IN 90 CITIES BUT HAS A FEW LOCATIONS THAT REFUSE TO ACCEPT DROPOFF CARS CONSUMER SPECIALISTS SAY PERSISTENT PEOPLE SOMETIMES GET AROUND BOTH DROPOFF FEES AND ONEWAY RATES OCCASIONALLY A CARRENTAL LOCATION WILL BE STUCK WITH A CAR FROM A PREVIOUS DROPOFF AND WILL BE TRYING TO RETURN THE CAR TO THE ORIGINAL CITY THEY THEN JUST RENT THE CAR FOR THE NORMAL FEE I'VE GOTTEN TO DO IT MYSELF SAYS ED PERKINS EDITOR OF CONSUMER REPORTS TRAVEL LETTER BUT HE WARNS THAT THIS HAPPENS RARELY YOU JUST HAVE TO KEEP CALLING UP INDIVIDUAL LOCATIONS AND ASKING THE CHILLICOTHE OHIO COMFORT INN WHERE PRESIDENT CLINTON STAYED IN FEBRUARY HAS A PROBLEM WHAT TO DO WITH THE SHEETS HE SLEPT ON THINKING IT MIGHT SOMEDAY WANT TO SELL THE SHEETS TO RAISE MONEY FOR A LOCAL CHARITY THE HOTEL HAS KEPT THEM UNWASHED HOTEL OFFICIALS ARE TRYING TO DETERMINE IF WASHING THEM WOULD REDUCE THEIR VALUE HERTZ SAYS COLORADO AND NEW YORK HAVE SCRAPPED POLICIES REQUIRING VEHICLES TO DISPLAY LICENSE PLATES IDENTIFYING THEM AS RENTAL CARS EIGHT OTHER STATES STILL HAVE THIS REQUIREMENT WHICH BECAME AN ISSUE AFTER THE MURDER OF A FLORIDA TOURIST WHO WAS DRIVING A CAR EASILY IDENTIFIABLE AS A RENTAL 9306040011 930604 DIVIDEND NEWS CENTER BANCORP CENTER BANCORP OF UNION NJ A BANK HOLDING COMPANY ANNOUNCED A 2FOR1 STOCK SPLIT AND DECLARED A QUARTERLY DIVIDEND OF 40 CENTS A SHARE ON ITS PRESPLIT SHARES BOTH PAYABLE JULY 1 TO SHARES OF RECORD JUNE 18 CENTER BANCORP CURRENTLY HAS ABOUT 700000 SHARES OUTSTANDING 9306040010 930604 VOLKSWAGEN VOWING TO BACK LOPEZ ATTACKS GENERAL MOTORS' ALLEGATIONS BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL HAMBURG TOP MANAGERS OF VOLKSWAGEN AG SHARPLY CRITICIZED GENERAL MOTORS CORP FOR TRYING TO DISCREDIT J IGNACIO LOPEZ DE ARRIORTUA AND VOWED TO STAND BEHIND THEIR EMBATTLED EMPLOYEE IN HIS FIGHT WITH THE US AUTO MAKER MR LOPEZ WHO JUMPED TO THE GERMAN COMPANY IN MARCH IS THE FOCUS OF AN INTENSIFYING SHOVING MATCH BETWEEN THE TWO CAR GIANTS GM CONTENDS THAT MR LOPEZ AIDED BY SEVEN FORMER GM AND ADAM OPEL AG COWORKERS WHO FOLLOWED HIM TO VW MAY HAVE CARTED OFF HORDES OF SENSITIVE GM DOCUMENTS ADAM OPEL IS GM'S GERMAN SUBSIDIARY IT'S INCOMPREHENSIBLE TO ME THE WAYS AND MEANS THAT ARE BEING USED NOT ONLY TO DISCREDIT THE FLAWLESS REPUTATION OF MR LOPEZ AND HIS COWORKERS BUT ALSO THE IMAGE OF THE WHOLE VOLKSWAGEN CONCERN FERDINAND PIECH VW'S CHAIRMAN SAID AT THE ANNUAL MEETING I EMPHATICALLY REJECT THIS KLAUS LIESEN CHAIRMAN OF VW'S SUPERVISORY BOARD SAID THE SUPERVISORY BOARD WHICH OVERSEES VW'S MANAGEMENT BOARD HAD INVESTIGATED THE CHARGES AND CONCLUDED THAT THE FORMER GM MANAGER DESERVES UNLIMITED CONFIDENCE THE COMMENTS APPEARED AIMED AT PUTTING GM ON THE DEFENSIVE VW IS ALSO PLANNING A NEWS CONFERENCE FOR MR LOPEZ NEXT FRIDAY HE'LL SPEAK TO ALL THE CHARGES HIMSELF IN DETAIL SAID A VW SPOKESMAN SO EVERYONE WILL HEAR WHAT HE HAS TO SAY FOR HIMSELF VW IS ALSO STEPPING UP ITS LEGAL COUNTERATTACK MR PIECH SAID MR LOPEZ HAS NOW JOINED A LAWSUIT AGAINST GM BROUGHT BY VW AND THE SEVEN OTHER FORMER GM AND OPEL EMPLOYEES IN A GERMAN LABOR COURT IN BRAUNSCHWEIG VW AND THE SEVEN EMPLOYEES HAD PREVIOUSLY SOUGHT TO STOP GM FROM INTERFERING WITH THE GROUP'S ABILITY TO WORK FOR VW WHILE ADDING MR LOPEZ TO THE SUIT THE GERMAN CAR MAKER ALSO EXPANDED THE SUIT TO INCLUDE THE DEMAND THAT GM RETRACT ALLEGATIONS THAT THEY HAD REMOVED SECRET DOCUMENTS AND DATA AND BETRAYED OPERATIONAL SECRETS BUT GM YESTERDAY REITERATED ITS ALLEGATIONS WHAT WE ARE SAYING IS THAT THE DOCUMENTS ARE MISSING AND HE MR LOPEZ HAD THEM AND WE DIDN'T GET A SATISFACTORY EXPLANATION DAVID J HERMAN CHAIRMAN AND MANAGING DIRECTOR OF OPEL TOLD REPORTERS AFTER A CEREMONY AT THE COMPANY'S NEW EASTERN GERMAN ASSEMBLY PLANT GERMAN PROSECUTORS ARE NOW INVESTIGATING WHAT HAPPENED TO THE DOCUMENTS BUT IT COULD TAKE MORE THAN SIX MONTHS BEFORE THEY DECIDE WHETHER TO PRESS CHARGES SEPARATELY MR PIECH TOLD SHAREHOLDERS HE HOPED VW WOULD SHIFT BACK INTO THE BLACK BY THE THIRD QUARTER AS PREVIOUSLY REPORTED VW SAW AFTERTAX PROFIT COLLAPSE IN 1992 AND RACKED UP A 125 BILLION MARK LOSS IN THIS YEAR'S FIRST QUARTER ROBERT L SIMISON CONTRIBUTED TO THIS ARTICLE 9306040009 930604 COMMUNIST YOUNGER GENERATION BUYING HONG KONG COMPANIES FOR CHINESE FIRMS BY CRAIG S SMITH STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG THE SONS AND DAUGHTERS OF CHINA'S POWERFUL COMMUNIST PARTY CADRES HAVE BEEN KICKING UP THEIR HEELS IN HONG KONG FOR A WHILE NOW BUT FEW HAVE RAISED AS MUCH DUST AS ZHOU BEIFANG CHAIRMAN OF SHOUGANG HOLDING HK LTD MR ZHOU 39 YEARS OLD ARRIVED IN THE BRITISH COLONY LAST YEAR WITH A MANDATE FROM HIS FATHER SHOUGANG CORP CHAIRMAN ZHOU GUANWU TO BUY LISTED COMPANIES ON BEHALF OF THE STATEOWNED STEEL COMPANY ONE OF CHINA'S BIGGEST CONGLOMERATES SHOUGANG HOLDING IS A WHOLLY OWNED SUBSIDIARY OF SHOUGANG CORP SINCE THEN THE YOUNGER MR ZHOU HAS BOUGHT STAKES IN FOUR HONG KONG LISTED CONCERNS AT A TOTAL COST OF ABOUT HK936 MILLION US1212 MILLION ALLYING HIMSELF WITH THE CREAM OF THE COLONY'S INVESTMENT COMMUNITY MOST RECENTLY HE BROUGHT TOGETHER HONG KONG BILLIONAIRE LI KASHING AND DENG ZHIFANG SON OF DENG XIAOPING CHINA'S PARAMOUNT LEADER MR ZHOU HAS ALSO JOINED MR LI AND OTHER MEMBERS OF HONG KONG'S POWER ELITE AS A PARTICIPANT IN NEW HONGKONG CHINA GROUP AN EXCLUSIVE INVESTMENT CLUB ORGANIZED BY ENTREPRENEUR TT TSUI MR ZHOU'S COLONIAL ADVENTURE IS THE LATEST EXAMPLE OF THE WAY CHINA'S YOUNGER GENERATION IS STEERING STATE CAPITAL OFFSHORE LIKE MANY OF HIS PEERS MR ZHOU CAME OF AGE IN THE SHADOW OF A POWERFUL FATHER HE STARTED WORK AT SHOUGANG WHEN HE WAS 16 NOW HE AND PEOPLE LIKE HIM ARE TESTING THE LIMITS OF CHINA'S REFORMS WITH EFFORTS TO GUIDE STATE ENTERPRISES INTO INTERNATIONAL WATERS CHINA WATCHERS SAY THE TREND IS PARTLY AN EFFORT BY THOSE WHO CONTROL STATE ASSETS TO ESCAPE RIGID GOVERNMENT RULES ABOUT HOW THEY ARE EXPLOITED MR ZHOU'S MOVES AREN'T WITHOUT RISKS THEY WARN TRANSFERRING STATE ASSETS INTO OFFSHORE LISTED COMPANIES HAS RAISED QUESTIONS ABOUT WHO SHOULD CONTROL THOSE ASSETS TRIGGERING A DEBATE IN CHINA THAT SOME OBSERVERS SAY COULD RESULT IN A BACKLASH AGAINST SHOUGANG IN HONG KONG AUTHORITIES ARE CONCERNED ABOUT THE ASSET TRANSFERS IN PART BECAUSE THE DIFFICULTY OF VALUING ASSETS IN CHINA RAISES THE POSSIBILITY THAT SUCH BUSINESSES WOULD COME INTO HONG KONG AT INFLATED PRICES IN ADDITION SUCH ASSET TRANFERS AVOID MOST REGULATORY CONTROLS FOLLOWING THE ANNOUNCEMENT OF SHOUGANG'S PLANS TO TRANSFER ASSETS TO TUNG WING STEEL HOLDINGS LTD THE HONG KONG SECURITIES AND FUTURES COMMISSION AND THE STOCK EXCHANGE SAID THEY WOULD INCREASE SCRUTINY OF SOCALLED BACKDOOR LISTINGS THESE OCCUR WHEN AN UNLISTED COMPANY BUYS CONTROL OF A LISTED ONE THEN TRANSFERS ASSETS TO THE LISTED VEHICLE THE ACTION SIDESTEPS THE NORMAL LISTING PROCESS WHICH REQUIRES GREATER FINANCIAL DISCLOSURE AND CAREFUL REGULATORY REVIEW ASSUMING THE REGULATORY ISSUES REMAIN SURMOUNTABLE LOCAL PLAYERS INVOLVED WITH MR ZHOU SAY HE HAS A BUSY SCHEDULE AHEAD OF HIM PARENT SHOUGANG CORP ALSO KNOWN AS CAPITAL IRON & STEEL CORP HAS ARMS REACHING INTO MORE THAN A DOZEN INDUSTRIES IN CHINA MANY OF WHICH COULD USE A LISTED VEHICLE IN HONG KONG MR ZHOU IS ALSO EXPECTED TO FILL THE SHELL COMPANIES SHOUGANG HOLDING ALREADY OWNS WITH ASSETS FROM CHINA PRESENCE OFFSHORE IS POWER OFFSHORE SAYS MIRON MUSHKAT CHIEF REGIONAL ECONOMIST AT BARING SECURITIES HONG KONG LTD HE ADDS THAT THE ALLIANCE BETWEEN CHINESE AND HONG KONG CAPITAL COULD LEAD TO THE EMERGENCE OF A NEW CLASS OF CHINESE MULTINATIONAL CORPORATION THIS IS THE MARRIAGE OF CAPITAL NOT JUST THE INJECTION OF CAPITAL HE SAYS CERTAINLY THE FINANCIAL MIGHT MR ZHOU CONTROLS IS PUSHING A BIGGER BOW WAVE THAN OTHER CHINESE ENTERPRISES ENTERING HONG KONG WHEN SHOUGANG BOUGHT A CONTROLLING STAKE IN TUNG WING STEEL IN NOVEMBER THE DEAL VALUED THE STEEL CONCERN AT ABOUT HK311 MILLION TUNG WING STEEL'S MARKET CAPITALIZATION HAS SINCE CLIMBED BEYOND HK25 BILLION BOOSTING THE VALUE OF SHOUGANG'S STAKE BY HK11 BILLION IN JUST SIX MONTHS AS INVESTORS BID UP THE TARGET COMPANY'S SHARES IN ANTICIPATION OF A HUGE INFUSION OF ASSETS THAT'S QUITE AN INTOXICATING BREW SAYS STEPHEN CLARK DIRECTOR OF ANGLO CHINESE INVESTMENT CO AN INVESTMENT FIRM WITH CLIENTS FROM THE MAINLAND SHOUGANG IS DISCOVERING THE JOYS OF DOING THIS FOR THE FIRST TIME HE ADDS SO FAR SHOUGANG HAS BEGUN TRANSFERRING ASSETS INTO JUST ONE OF THE FOUR COMPANIES IT NOW CONTROLS TUNG WING STEEL WHICH IT BOUGHT WITH MR LI'S CHEUNG KONG HOLDINGS LTD IN NOVEMBER TUNG WING STEEL IS RAISING CAPITAL THROUGH A HK188 BILLION RIGHTS OFFERING TO FUND ITS PURCHASE OF THE ASSETS WITH SHOUGANG PUTTING UP HK9482 MILLION OF THE TOTAL IN ORDER TO MAINTAIN ITS CONTROLLING STAKE IN THE COMPANY IN TURN TUNG WING STEEL WILL PAY THE BEIJING PARENT HK961 MILLION FOR A 65 STAKE IN THREE FACTORIES AND A FURTHER HK2423 MILLION FOR A CONTROLLING STAKE IN SANTAI MANUFACTURING LTD ONE OF THE OTHER HONG KONGLISTED COMPANIES SHOUGANG NOW CONTROLS AFTER PAYING OFF DEBT AND COVERING THE WORKINGCAPITAL NEEDS OF THE BEIJING FACTORIES TUNG WING STEEL WILL BE LEFT WITH ABOUT HK2227 MILLION IN EXCESS CASH FROM THE RIGHTS ISSUE PRESUMABLY TO BE USED IN THE PURCHASE OF OTHER ASSETS FROM SHOUGANG EVENTUALLY ASSET TRANSFERS ARE EXPECTED AT THE OTHER THREE COMPANIES SHOUGANG CONTROLS AS WELL SANTAI MANUFACTURING AN ELECTRONICCOMPONENT MANUFACTURER EASTERN CENTURY HOLDINGS LTD A MINERAL AND METALS TRADING CONCERN AND SHOUGANG'S MOST RECENT PURCHASE KADER INVESTMENTS LTD A REAL ESTATE FIRM IT BOUGHT WITH MR LI THE YOUNGER MR DENG AND OTHER INVESTORS SHOUGANG CORP HAS PLENTY OF SUBSIDIARIES IT COULD SELL TO ITS LISTED COMPANIES IN HONG KONG BESIDES STEEL THE PARENT COMPANY'S BUSINESSES INCLUDE ELECTRONICS MINING MACHINERY CONSTRUCTION CHEMICALS SHIPPING SHIPBUILDING TOURISM GARMENTS AUTO PARTS AND FARM MACHINES OBSERVERS SAY MR ZHOU HAS NO TIME TO LOSE HIS MANDATE ULTIMATELY COMES FROM THE ELDER MR DENG HIMSELF WHO VISITED MR ZHOU'S FATHER AT SHOUGANG'S BEIJING HEADQUARTERS IN MAY 1992 THE VISIT WAS SEEN AS MR DENG'S NORTHERN BEACHHEAD IN HIS CAMPAIGN FOR ECONOMIC REFORM FOLLOWING HIS MUCHPUBLICIZED TOUR OF SHENZHEN EARLY LAST YEAR SUCH VISITS BY MR DENG ARE RARE BUT WHILE THE POLITICAL CURRENCY THEY PROVIDE GOES A LONG WAY IT DOESN'T LAST FOREVER ANY NUMBER OF THINGS COULD HAPPEN TO STOP MR ZHOU'S PROGRESS NOT THE LEAST OF WHICH WOULD BE MR DENG'S DEMISE 9306040008 930604 AT&T SEGA TO PROVIDE A LINK FOR VIDEO GAMES NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO SAID IT AGREED WITH SEGA OF AMERICA A UNIT OF JAPAN'S SEGA ENTERPRISES LTD TO CREATE A LOWCOST HARDWARE PRODUCT DESIGNED TO MAKE MULTIPERSON VIDEOGAME PLAY POSSIBLE OVER NORMAL PHONE LINES AT&T SAID THE PLANNED PRODUCT DUBBED THE EDGE 16 WILL BE ONE OF ITS FIRST HARDWARE ENTRIES IN THE HOME ENTERTAINMENT INDUSTRY AND WILL BE DEVELOPED IN A COLLABORATIVE EFFORT WITH PF MAGIC INC A SAN FRANSISCOBASED INTERACTIVE ENTERTAINMENT COMPANY THE PRODUCT WILL PLUG INTO SEGA'S GENESIS SYSTEM FOR VIDEO GAMES AND WILL ENABLE SEVERAL PEOPLE TO PLAY IT WILL TRIPLE THE GENESIS SYSTEM'S POWER BY EXPANDING THE MAIN MEMORY ALSO EDGE 16 WILL PROVIDE SPECIAL PORTS FOR THE ADDITION OF A KEYBOARD AND FOR OTHER EXPANSION UPGRADES AT&T SAID THE EDGE 16 IS SLATED FOR RELEASE BY THE SUMMER OF 1994 IT IS EXPECTED TO SELL FOR ABOUT 100 TO 150 AT&T SAID IN APRIL SEGA SAID IT WILL TEAM WITH TIME WARNER INC AND TELECOMMUNICATIONS INC TO OFFER VIDEO GAMES THROUGH US CABLE SYSTEMS 9306040007 930604 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/16 HIGH 2 15/16 LOW 2 15/16 NEAR CLOSING BID 3 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 309 30 TO 59 DAYS 312 60 TO 89 DAYS 315 90 TO 119 DAYS 320 120 TO 149 DAYS 324 150 TO 229 DAYS 332 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 318 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 265 TWO MONTHS 269 THREE MONTHS 285 SIX MONTHS 310 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 308 ONE MONTH 316 THREE MONTHS 331 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 308 60 DAYS 312 90 DAYS 315 120 DAYS 319 150 DAYS 322 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 3/16 3 1/16 ONE MONTH 3 1/4 3 1/8 TWO MONTHS 3 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JUNE 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 308 13 WEEKS 322 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 722 60 DAYS 731 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 719 60 DAYS 729 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306040006 930604 THURSDAY'S MARKETS BLUE CHIPS FALL BOND PRICES UP DOLLAR GAINS BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL PROFITTAKERS KNOCKED THE DOW JONES INDUSTRIAL AVERAGE LOWER IN NERVOUS TRADING AHEAD OF TODAY'S EMPLOYMENT REPORT BOND PRICES ROSE AND THE DOLLAR STRENGTHENED THE INDUSTRIAL AVERAGE SLID 858 POINTS TO 354487 STANDARD & POOR'S 500STOCK INDEX FELL 136 TO 45249 BUT THE NASDAQ COMPOSITE INDEX EDGED UP 036 TO 70622 ANALYSTS SAID STOCK MARKET INVESTORS TOOK THE OPPORTUNITY TO SELL SOME SHARES AT A PROFIT AFTER THE SURGE IN PRICES EARLIER THIS WEEK THE ANALYSTS ADDED THAT INVESTORS ARE STRIKINGLY FICKLE LATELY AS THEY AWAIT CLEARER SIGNS ON THE ECONOMY AND INFLATION AS A RESULT INDIVIDUAL STOCKS AND EVEN ENTIRE GROUPS QUICKLY FALL IN AND OUT OF FAVOR PEOPLE ARE CHASING BUTTERFLIES SAID MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER & CO WHEN LIGHTNING STRIKES EVERYONE JUMPS TO WHERE IT IS AND WHEN IT CALMS DOWN THEY GO SOMEWHERE ELSE INVESTORS WILL SCRUTINIZE TODAY'S EMPLOYMENT REPORT FOR A HINT OF THE ECONOMY'S HEALTH BUT MR METZ ARGUED THAT SIGNS OF AN IMPROVING LABOR PICTURE MAY NOT LIFT STOCK PRICES SIGNIFICANTLY THE STOCK MARKET HAS ALREADY PRICED IN A STRONG EARNINGS OUTLOOK FOR THE BALANCE OF THE YEAR HE SAID THE MARKET SCARCELY REACTED TO A LABOR DEPARTMENT REPORT THAT INITIAL CLAIMS FOR STATE UNEMPLOYMENT BENEFITS ROSE 5000 LAST WEEK ECONOMISTS HAD PREDICTED A DECLINE OF 2000 REPORTS OF IMPROVED AUTO SALES IN LATE MAY FAILED TO RESUSCITATE THE BROAD MARKET BUT GAVE A BOOST TO THE BIG THREE AUTO MAKERS FORD JUMPED 2 3/8 TO 55 3/8 CHRYSLER ROSE 1 TO 46 AND GENERAL MOTORS GAINED 3/4 TO 41 WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 041 TO 10861 IN MAJOR MARKET ACTION STOCK PRICES WERE MIXED VOLUME TOTALED 2799 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1000 ISSUES FELL AND 881 ROSE THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING THE CURRENCY WAS AT 15995 MARKS AND 10726 YEN COMPARED WITH 15978 MARKS AND 10720 YEN WEDNESDAY 9306040005 930604 BENTSEN EXPECTS 25 TO 33 CUT IN ENERGY TAX SIMILAR SLICE FROM SPENDING IS NEEDED AND MEDICARE MAY BE FIRST IN LINE BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL MOSCOW TREASURY SECRETARY LLOYD BENTSEN SAID HE EXPECTS THE SENATE TO CUT PRESIDENT CLINTON'S ENERGY TAX BY ONEQUARTER TO ONETHIRD BUT IN AN INTERVIEW HERE MR BENTSEN INDICATED THAT THE OUTCOME OF NEGOTIATIONS WITH BALKING SENATE DEMOCRATS IS STILL FAR FROM CERTAIN WHY I HEDGE IS BECAUSE WE'LL ALSO HAVE TO CUT SPENDING TO MAKE UP FOR THE LOST REVENUE HE SAID AND MANY DEMOCRATIC SENATORS MAY FIND THE ADDITIONAL SPENDING CUTS AS DIFFICULT TO SWALLOW AS THE ENERGY TAX MR BENTSEN SAID HE SPOKE WEDNESDAY BY TELEPHONE WITH SENATE FINANCE COMMITTEE CHAIRMAN DANIEL PATRICK MOYNIHAN WHO IS AT HIS HOME IN NEW YORK STATE BUT ADMINISTRATION OFFICIALS SAY TALKS ON THE ENERGY TAX AREN'T LIKELY TO BEGIN IN EARNEST UNTIL BOTH MEN RETURN TO WASHINGTON THIS WEEKEND MR BENTSEN SAID HE IS REASONABLY OPTIMISTIC THAT HE AND THE FINANCE COMMITTEE CAN PARE THE PROPOSED ENERGY TAX AND CUT MEDICARE SPENDING ENOUGH TO GET A DEFICITREDUCTION BILL THROUGH THE SENATE PERHAPS BEFORE THE END OF JUNE AS PASSED BY THE HOUSE LAST WEEK THE PRESIDENT'S ENERGY TAX WOULD RAISE ABOUT 70 BILLION OVER THE NEXT FIVE YEARS BUT THE FINANCE COMMITTEE IS EXPECTED TO ADOPT MEASURES THAT WILL SOFTEN THE BLOW OF THE TAX ON BUSINESS LARGELY TO SATISFY OILSTATE AND FARMSTATE SENATORS MR BENTSEN'S COMMENT SUGGESTS THOSE MEASURES WILL REDUCE THE REVENUE RAISED FROM THE TAX BY 17 BILLION TO 23 BILLION THE TREASURY SECRETARY SAID HE EXPECTS MOST OF THE NEW SPENDING CUTS TO COME FROM THE MEDICARE HEALTHINSURANCE PROGRAM FOR THE ELDERLY THAT WOULD BE ON TOP OF THE 50 BILLION IN CUTS FROM MEDICARE AND THE MEDICAID PROGRAM FOR THE POOR THAT ALREADY ARE INCLUDED IN THE HOUSE BILL MR BENTSEN WOULDN'T BE SPECIFIC ABOUT EXACTLY HOW THE ADDITIONAL CUTS WOULD BE MADE SAYING THE TREASURY STILL IS WEIGHING WAYS TO ALTER THE ENERGY TAX IN CONSULTATION WITH THE SENATE ONE OPTION BEING CONSIDERED BY THE ADMINISTRATION WOULD REQUIRE UPPERINCOME ELDERLY TO PAY MORE FOR MEDICARE MR BENTSEN HINTED THAT THE ADMINISTRATION HAD COME UP WITH A NEW WAY OF DEALING WITH WHAT THE ELDERLY PAY FOR MEDICARE COVERAGE HE DECLINED TO ELABORATE MR BENTSEN SAID THE CHANGES IN THE PACKAGE SHOULD SUFFICIENTLY ALTER THE MIX OF SPENDING CUTS AND TAX INCREASES TO BLUNT ARGUMENTS AGAINST THE PRESIDENT'S PROPOSAL HE SAID THE ADMINISTRATION HADN'T PROPOSED SUCH A SHIFT UNTIL JUST BEFORE THE VERY CLOSE VOTE IN THE HOUSE LAST WEEK BECAUSE WE DIDN'T EXPECT AS TOUGH A FIGHT AS WE HAD THE TREASURY SECRETARY A 22YEAR VETERAN OF THE SENATE ATTRIBUTED SOME OF THE PROBLEMS THAT THE CLINTON ADMINISTRATION IS HAVING TO THE FOCUS EARLIER THIS YEAR ON MR CLINTON'S UNSUCCESSFUL PLAN TO SPEND MORE THAN 16 BILLION TO STIMULATE THE ECONOMY THAT WAS ALL ABOUT SPENDING THE PUBLIC LOST SIGHT OF WHAT THE AMOUNT OF SAVINGS WAS IN THE PRESIDENT'S BUDGET A REFERENCE TO MR CLINTON'S PROPOSAL TO SQUEEZE MEDICARE FARM SUBSIDIES THE DEFENSE BUDGET AND OTHER PROGRAMS MR BENTSEN ADDED THAT HE EXPECTS MR CLINTON'S DOMESTICINVESTMENT SPENDING PROPOSALS TO BE TRIMMED SOMEWHAT BEFORE CONGRESS FINISHES WORK HE SAID HE HOPES THE DEFICITREDUCTION BILL WILL COME TO THE SENATE FLOOR DURING THE THIRD WEEK OF THIS MONTH FAILURE TO ADVANCE THE MODIFIED DEFICITREDUCTION PACKAGE HE WARNED WOULD SEND LONGTERM INTEREST RATES UP BUT SUCCESS IN THE SENATE WOULD RESOLVE THE UNCERTAINTY THAT IN HIS VIEW IS DISCOURAGING EMPLOYERS FROM HIRING NEW WORKERS THUS CONTRIBUTING TO THE WEAKNESS OF THE ECONOMY MR BENTSEN IS TO MEET WITH RUSSIAN PRESIDENT BORIS YELTSIN TODAY TO EMPHASIZE THE US SUPPORT FOR ECONOMIC REFORM EFFORTS PARTICULARLY THE PRIVATIZATION OF STATEOWNED ENTERPRISES AND THE URGENCY OF FURTHER RESTRAINTS ON THE GROWTH OF CREDIT THE TREASURY SECRETARY IS CARRYING A PERSONAL LETTER FROM PRESIDENT CLINTON TO MR YELTSIN THAT UNDERSCORES THESE AND OTHER POINTS 9306040004 930604 BUSINESS BRIEF COMMERCE CLEARING HOUSE INC COMPANY TO ELIMINATE JOBS SHIFT TO ELECTRONIC MEDIA COMMERCE CLEARING HOUSE INC SAID IT PLANS TO ELIMINATE 390 JOBS AND CONSOLIDATE CERTAIN FACILITIES BY THE END OF 1994 IN RESPONSE TO WHAT IT CHARACTERIZED AS CHANGING BUSINESS CONDITIONS THE RIVERWOODS ILL TAX AND BUSINESS LAW PUBLISHER SAID THOSE CONDITIONS INCLUDE A SHIFT TOWARD PERSONAL COMPUTER SOFTWARE AND ELECTRONIC MEDIA AND SERVICES AND AWAY FROM PRINTED TAX AND LAW CODE REPORTS THAT HAVE BEEN ITS MAINSTAY THERE IS A CLEAR MIGRATION BY OUR CUSTOMERS TOWARD ELECTRONIC MEDIA AND SERVICES THE COMPANY SAID IN DISCLOSING PLANS TO SHUT DOWN ITS CURRENT PRINTING OPERATIONS IN CHICAGO AND IN CLARK NJ REMAINING PRINTING OPERATIONS WILL BE CONSOLIDATED TO A PLANT IN ST PETERSBURG FLA AND SOME PRINTING WORK WILL BY OUTSIDE CONTRACTORS ABOUT 245 JOBS WILL BE CUT IN THE PRINTING OPERATIONS THE COMPANY SAID AND ANOTHER 145 JOBS WILL BE ELIMINATED IN THE COMPANY'S LEGAL INFORMATION SYSTEMS UNIT WHICH OFFERS A VARIETY OF LEGAL SERVICES SUCH AS TRADEMARK SEARCHES COMMERCE CLEARING CURRENTLY HAS ABOUT 6400 EMPLOYEES 9306040003 930604 OTC FOCUS STOCKS EDGE HIGHER AFTER A LATE RISE IN BOND MARKET TRADING IS LACKLUSTER BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK OVERTHECOUNTER STOCKS WERE LIFTED BY A LATE RISE IN THE BOND MARKET IN A DAY OF LACKLUSTER TRADING THE NASDAQ COMPOSITE INDEX SPENT MUCH OF THE DAY MARGINALLY LOWER BUT FOLLOWED BONDS HIGHER IN THE LATE AFTERNOON THE INDEX EDGED UP 036 POINT OR 005 TO 70622 ADVANCERS EDGED OUT RETREATING ISSUES 1336 TO 1311 TOTAL VOLUME WAS 2601 MILLION SHARES DOWN FROM 2743 MILLION SHARES WEDNESDAY TRADERS SAID A LACK OF LEADERSHIP IN THE OVERTHECOUNTER MARKET CAPPED FURTHER GAINS THERE WAS SOME SOFT PROFITTAKING SAID HEDI REYNOLDS MANAGING DIRECTOR OF NASDAQ TRADING AT MORGAN KEEGAN & CO WE DIDN'T SEE A LOT OF FOLLOW THROUGH FROM GROUPSSUCH AS COMMUNICATIONS ISSUESTHAT LED THE MARKET WEDNESDAY MS REYNOLDS ADDED THAT SHE SAW SOME SHORT COVERING YESTERDAY SHORT COVERING OCCURS WHEN TRADERS WHO HAD BET ON DECLINING STOCK PRICES ARE FORCED TO PURCHASE SHARES TO COVER THEIR BETS THE LACK OF COMMITMENT IN YESTERDAY'S TRADING WAS ATTRIBUTABLE IN LARGE PART TO HESITATION AHEAD OF TODAY'S MAY EMPLOYMENT DATA MARKET WATCHERS SAID SHOULD THE REPORT INDICATE FURTHER SOFTNESS IN THE ECONOMY THE OTC MARKET COULD FARE POORLY THEY ADDED UNCERTAINTY ABOUT THE ECONOMIC AND POLITICAL CLIMATE HAS TAKEN ON A LIFE OF ITS OWN RECENTLY ANALYSTS SAY THIS UNCERTAINTY HAS RISEN TO THE FOREFRONT OF INVESTOR PSYCHOLOGY ALONG WITH CONCERN OVER INFLATION IN DETERMINING THE MARKET'S DIRECTION SCOTT BLEIER A MARKET TECHNICIAN AT JOSEPHTHAL LYON & ROSS SAID SOME MARKET PLAYERS ARE LOOKING EVEN FURTHER AHEAD TO NEXT WEEK AND THE FOLLOWING WEEK WHEN THE MAY PRODUCER PRICE AND CONSUMER PRICE INDEXES TWO INFLATION INDICATORS ARE RELEASED THE NASDAQ MARKET IS LOOKING RATHER SPECULATIVE SAID MR BLEIER THE MARKET IS HOLDING ON TO ITS TRADING RANGE VERY TENUOUSLY MANY TECHNOLOGY STOCKS CLIMBED HIGHER AFTER GIVING BACK GAINS MADE IN A RALLY TUESDAY SUN MICROSYSTEMS ROSE 1 1/8 TO 32 3/8 ON HEAVY VOLUME SYNOPSYS ADDED 1 3/4 TO 43 AND BMC SOFTWARE JUMPED 2 1/2 TO 47 3/4 TOPPING THE MOSTACTIVES LIST WAS 3COM WHICH ADVANCED 1 7/8 TO 25 1/8 THE SANTA CLARA CALIF NETWORKER SAID IT SEES EARNINGS FOR ITS JUSTCOMPLETED FOURTH QUARTER REACHING 40 CENTS A SHARE ON SALES OF ABOUT 167 MILLION THIS WOULD REPRESENT A 100 INCREASE IN PERSHARE EARNINGS AND A 33 JUMP IN SALES FROM THE YEAREARLIER PERIOD AFTER HITTING A 52WEEK HIGH OF 40 LATE LAST WEEK SHARES OF 3COM PLUMMETED 42 AFTER THE COMPANY SAID IT WOULDN'T MEET ANALYSTS' ESTIMATES IN THE HEALTH CARE GROUP CENTOCOR WAS UP 1 1/2 AT 8 1/4 THE MALVERN PA COMPANY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HE THINKS CENTOCOR IS JUST DAYS AWAY FROM FORMALIZING A MARKETING AGREEMENT FOR ITS CENTORX ANTICLOTTING DRUG WITH ELI LILLY VENTRITEX OF SUNNYVALE CALIF GAINED 2 3/4 TO 25 THE COMPANY SAID SALES OF ITS CADENCE IMPLANTABLE DEFIBRILLATOR WERE IN LINE WITH ITS EXPECTATIONS FOR MAY THE FIRST MONTH OF COMMERCIAL AVAILABILITY FOR THE PRODUCT A SERIES OF AGREEMENTS MADE WITH RHONEPOULENC RORER SENT APPLIED IMMUNE SCIENCES UP 3 7/8 TO 22 7/8 UNDER THE AGREEMENTS RHONEPOULENC WILL INVEST 113 MILLION TO ACQUIRE A 37 INTEREST IN APPLIED IMMUNE WITH THE RIGHT TO PURCHASE A MAJORITY OWNERSHIP INTEREST OF ABOUT 60 ON THE NEW YORK STOCK EXCHANGE RHONEPOULENC SHED 1/2 TO 52 7/8 SEPRACOR ADDED 1 TO 8 1/2 AFTER SAYING IT HAS LICENSED EXCLUSIVE RIGHTS TO ITS PATENT APPLICATION FOR TERFENADINE CAROBOXYLATE TO MARION MERRELL DOW MARION MERRELL DROPPED 1/8 TO 16 3/4 ON THE BIG BOARD OTHER MOVERS IN THE SECTOR INCLUDED GENZYME WHICH DECLINED 1 1/4 TO 37 1/2 IMMUNE RESPONSE DOWN 1 AT 25 1/4 AND HEART TECHNOLOGY UP 1 3/4 TO 23 1/4 CLASS A SHARES OF LB FOSTER LEAPED 1 3/16 TO 4 7/16 AFTER CNBC QUOTED CHICAGOAREA MONEY MANAGER BILL LEAVITT AS SAYING HE EXPECTS EARNINGS FOR THE CONSTRUCTION PRODUCTS MAKER TO GROW 40 TO 50 A YEAR DURING THE NEXT THREE TO FIVE YEARS 9306040002 930604 FOREIGN EXCHANGE DOLLAR ENDS MIXED IN SUBDUED TRADING AHEAD OF MAY EMPLOYMENT DATA TODAY BY RICHARD SCHUMACHER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE MARKET'S RELUCTANCE TO DEAL AGGRESSIVELY AHEAD OF US MAY EMPLOYMENT DATA TO BE RELEASED TODAY KEPT DOLLAR TRADING SUBDUED AND RANGEBOUND THURSDAY THE US CURRENCY FINISHED NARROWLY MIXED TRADERS SAID THE MARKET IGNORED A DROP IN WESTERN GERMANY'S GROSS DOMESTIC PRODUCT OR GDP THAT WHILE LARGER THAN EXPECTED DIDN'T COME AS A SURPRISE IN ADDITION US WEEKLY JOBLESS STATISTICS MET EXPECTATIONS LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15995 MARKS UP FROM 15978 MARKS LATE WEDNESDAY IN NEW YORK THE US CURRENCY ALSO WAS CHANGING HANDS AT 10726 YEN UP MARGINALLY FROM 10720 YEN STERLING WAS TRADING AT 15445 UP FROM 15410 ABOUT MIDDAY FRIDAY IN TOKYO THE DOLLAR WAS TRADING AT 10738 YEN AND AT 15963 MARKS EVERYONE WHO'S GOT SOMETHING TO DO WILL WAIT UNTIL THE JOBS REPORT COMES OUT SAID CRAIG ASCHE A VICE PRESIDENT AT SALOMON BROTHERS INC US NONFARM PAYROLLS ARE ESTIMATED TO HAVE RISEN 155000 IN MAY FROM APRIL ACCORDING TO A SURVEY OF ECONOMISTS THE CIVILIAN UNEMPLOYMENT RATE IS EXPECTED TO HAVE HELD STEADY AT 7 THE EMPLOYMENT REPORT GENERALLY REGARDED AS THE MOST IMPORTANT US ECONOMIC INDICATOR IN A GIVEN MONTH WILL BE VIEWED AS A BAROMETER OF THE US ECONOMIC RECOVERY'S PACE TRADERS SAID MARKET PARTICIPANTS REPEATEDLY HAVE IDENTIFIED SUSTAINED INDICATIONS OF A US ECONOMIC UPSWING AS A PREREQUISITE FOR A STRONGER DOLLAR ALTHOUGH THE DOLLAR FINISHED ONLY A TOUCH FIRMER AGAINST THE YEN THURSDAY IT HAD TRADED SOLIDLY ABOVE ITS WEDNESDAY CLOSING LEVEL IN NEW YORK THROUGH MUCH OF THE GLOBAL DAY THE BANK OF JAPAN WAS SEEN INTERVENING AGGRESSIVELY BUYING DOLLARS BETWEEN 10740 AND 10755 YEN IN ASIAN DEALINGS AND THIS BOOSTED THE US CURRENCY PLAYERS SAID THE DOLLAR ALSO ADVANCED ON RUMORS THE BANK OF JAPAN MIGHT BE CONTEMPLATING A CUT IN ITS OFFICIAL DISCOUNT RATE SAID RICK PORTER MANAGER OF CORPORATE TREASURY AT BANK BRUSSELS LAMBERT THE DISCOUNT RATE WHICH STANDS AT 25 IS WHAT THE CENTRAL BANK CHARGES ON LOANS TO OTHER BANKS THE RUMORS SPRING FROM THE PERCEPTION THAT LOWER JAPANESE INTEREST RATES MIGHT DEFUSE SOME OF THE IMPACT OF THE YEN'S RECENT APPRECIATION SALOMON'S MR ASCHE SAID CUTS ALSO MIGHT APPEASE THE CLINTON ADMINISTRATION WHICH HAS BEEN ENCOURAGING JAPAN TO STIMULATE ITS DOMESTIC ECONOMY FURTHER HE ADDED MR PORTER HOWEVER NOTED THAT A BANK OF JAPAN OFFICIAL HAD SEEMED TO TRY TO QUASH SUCH EXPECTATIONS THURSDAY YOSHIHARU OBATA THE DEPUTY DIRECTOR OF THE BANK OF JAPAN'S POLICY DIVISION SAID THE BANK WON'T CONSIDER EASING RATES SIMPLY TO CORRECT FOR THE YEN'S SURGE HE SAID THE CENTRAL BANK STILL BELIEVES A RECOVERY OF PRIVATE DEMAND LATE IN THE YEAR COULD EMERGE TO FUEL A GRADUAL RECOVERY IN EUROPEAN AND NORTH AMERICAN TRADING THURSDAY WHEN THE BANK OF JAPAN WAS OUT OF THE MARKET THE DOLLAR DRIFTED FROM ITS HIGHS AGAINST THE YEN DEALERS SAID MANY OF THE SHORT POSITIONS IN THE MARKET HAVE BEEN COVERED IN THE LAST 24 HOURS MR PORTER SAID POSITIONS ARE MORE BALANCED NOW SO THE DOLLAR'S DOWNTREND CAN REEMERGE AGAINST THE MARK THURSDAY THE DOLLAR HOVERED IN A TIGHT RANGE THROUGHOUT THE DAY A LARGERTHANEXPECTED DECREASE IN WESTERN GERMANY'S FIRSTQUARTER GDP GAVE THE DOLLAR SOME SUPPORT BUT DIDN'T CATCH THE MARKET OFF GUARD MR ASCHE SAID THE GDP CONTRACTED A REAL SEASONALLY ADJUSTED 15 IN THE FIRST QUARTER OF 1993 FROM 1992'S FOURTH QUARTER GERMANY'S FEDERAL STATISTICS OFFICE REPORTED COMPARED WITH YEAREARLIER FIRSTQUARTER FIGURES THE GDP SHRANK 32 THE LARGEST DECLINE IN 18 YEARS THE MARKET HAD EXPECTED A DROP OF 1 FROM THE FOURTH QUARTER AND OF 3 FROM THE YEAR BEFORE THE NUMBERS WERE MISERABLE BUT THE MARKET HAD HAD ENOUGH WARNING OF WHAT THEY'D BE AND THEY FAILED TO HAVE MUCH IMPACT MR ASCHE SAID LIKEWISE THE BUNDESBANK'S DECISION TO LEAVE UNCHANGED ITS KEY OFFICIAL INTEREST RATES WAS IN LINE WITH EXPECTATIONS AND DIDN'T AFFECT TRADING PLAYERS SAID 9306040001 930604 TECHNOLOGY BRIEF GENENTECH INC DRUG'S CANADIAN PRICE IS CUT ENDING GOVERNMENT DISPUTE BIOTECHNOLOGY FIRM GENENTECH INC SETTLED A DISAGREEMENT WITH A CANADIAN GOVERNMENT AGENCY BY LOWERING THE CANADIAN PRICE OF ITS HEART DRUG ACTIVASE GENENTECH SAN FRANCISCO ALSO AGREED TO PAY A SETTLEMENT FEE OF 18 MILLION CANADIAN DOLLARS US14 MILLION TO THE GOVERNMENT WITH THE MOVES CANADA'S PATENTED MEDICINE PRICES REVIEW BOARD CANCELED A HEARING ON ALLEGATIONS THAT ACTIVASE IS OVERPRICED THE DRUG IS USED TO DISSOLVE BLOOD CLOTS AFTER A HEART ATTACK GENENTECH AGREED TO REDUCE THE DRUG'S CANADIAN LIST PRICE TO C1355 FOR A 50MILLIGRAM VIAL FROM C1450 THE ADJUSTMENT BRINGS THE PRICE TO ITS US LEVEL GENENTECH PRESIDENT G KIRK RAAB SAID THE COMPANY AGREED TO THE SETTLEMENT TO AVOID THE TREMENDOUS TIME AND LEGAL EXPENSES INVOLVED IN PROCEEDING TO A HEARING THE COMPANY HOWEVER STILL DISAGREES WITH THE BOARD'S PRICING GUIDELINES HE SAID 9306040098 930528 LAW LEGAL BEAT INS URGED TO VIEW PERSECUTION OF GAYS AS GROUNDS FOR ASYLUM BY WADE LAMBERT STAFF REPORTER OF THE WALL STREET JOURNAL GAY AND HUMANRIGHTS GROUPS ARE URGING US OFFICIALS TO RECOGNIZE PERSECUTION OF HOMOSEXUALS AS GROUNDS FOR POLITICAL ASYLUM THE GROUPS ARE HELPING THREE INDIVIDUALS PURSUE SUCH CLAIMS BEFORE THE IMMIGRATION AND NATURALIZATION SERVICE IN HOPES THAT THEIR EFFORTS WILL CLEAR THE WAY FOR FUTURE GAY ASYLUM SEEKERS THE THREE CASES WHICH COULD TAKE YEARS TO RESOLVE INVOLVE A LESBIAN WHO WAS A POLITICAL ACTIVIST IN MOSCOW AN IRANIAN WHO FEARS HE WILL BE EXECUTED UNDER ISLAMIC LAW FOR HOMOSEXUALITY AND A GAY NICARAGUAN WITH AIDS WHO SAYS HE WILL BE PERSECUTED IF HE'S DEPORTED FROM THE US US LAW WAS CHANGED IN 1990 TO REMOVE HOMOSEXUALITY AS A BAR TO IMMIGRATION BUT FEW GAY REFUGEES HAVE MADE ASYLUM CLAIMS BASED ON THEIR SEXUALITY PARTLY FOR FEAR OF PUBLICITY OR REPERCUSSIONS AGAINST RELATIVES BACK HOME ACTIVISTS SAY THEY ARE TAKING UP SUCH CASES NOW BECAUSE THE HARSH TREATMENT OF GAYS ABROAD INCLUDING TORTURE AND EXECUTION BY FOREIGN GOVERNMENTS HAS RECEIVED INCREASED ATTENTION FROM HUMANRIGHTS GROUPS AND THE US STATE DEPARTMENT IN RECENT YEARS THE ASYLUM AREA IS TRADITIONALLY ONE OF THE MOST CONTENTIOUS AND POLARIZED POLICY AREAS IN THE US SAID ARTHUR HELTON DIRECTOR OF THE REFUGEE PROJECT OF THE LAWYERS COMMITTEE FOR HUMAN RIGHTS WHICH SUPPORTS ASYLUM FOR PERSECUTED HOMOSEXUALS TO WIN POLITICAL ASYLUM APPLICANTS MUST SHOW THEY ARE REFUGEES AND CAN'T RETURN TO THEIR HOME COUNTRIES BECAUSE OF A WELLFOUNDED FEAR OF BEING PERSECUTED FOR REASONS OF RACE RELIGION NATIONALITY MEMBERSHIP IN A PARTICULAR SOCIAL GROUP OR POLITICAL OPINION THE GAY APPLICANTS' ELIGIBILITY IS BASED ON MEMBERSHIP IN A PARTICULAR SOCIAL GROUP SAID SUZANNE GOLDBERG AN ATTORNEY AT LAMBDA LEGAL DEFENSE AND EDUCATION FUND WHO IS WORKING ON THE INS CASES THERE CAN BE LITTLE QUESTION THAT LESBIANS AND GAY MEN WHEN TREATED AS A CLASS OR PERSECUTED AS A GROUP FALL UNDER THAT CATEGORY RICHARD KENNEY A SPOKESMAN FOR THE INS SAID THAT BEING A HOMOSEXUAL FROM A CERTAIN COUNTRY MAY FIT THE CATEGORY FOR REFUGEE STATUS BUT HE SAID THE AGENCY HAS NO GENERAL GUIDELINES FOR DECIDING THAT QUESTION WE DON'T MAKE GENERALIZATIONS FOR ANY PARTICULAR CAUSE HE SAID THE INDIVIDUAL HAS TO MAKE THE CASE FOR BEING PERSECUTED AS A PERSON HE HAS TO MAKE A VERY STRONG CASE THAT HE'S GOING TO SUBJECT HIMSELF TO UNREASONABLE RISK OF PERSECUTION IF HE RETURNS ONE OF THE HURDLES FOR GAY ACTIVISTS IS THAT INS DECISIONS AREN'T AUTOMATICALLY PRECEDENTSETTING FOR OTHER APPLICANTS IN 1990 THE BOARD OF IMMIGRATION APPEALS RULED THAT A GAY CUBAN SHOULD BE GRANTED REFUGEE STATUS WHICH DOESN'T PROVIDE AS MUCH PROTECTION AS POLITICAL ASYLUM THE JUSTICE DEPARTMENT LAST YEAR TURNED DOWN A REQUEST TO MAKE THAT DECISION PRECEDENTSETTING IN THE GAY IRANIAN'S CASE THE UNITED NATIONS HIGH COMMISSIONER FOR REFUGEES WROTE A LETTER SUPPORTING THE ASYLUM CLAIM THE UN AGENCY SAID THE 32YEAROLD MAN'S FEARS OF PERSECUTION ARE OBJECTIVELY SUPPORTED BY REPORTS CONCERNING THE TREATMENT OF HOMOSEXUALS BY THE IRANIAN GOVERNMENT THE LETTER CITED REPORTS OF GAY MEN WHO WERE BEHEADED AND LESBIANS WHO WERE STONED TO DEATH THE UN OFFICE SAID THAT AT LEAST FOUR OTHER COUNTRIES INCLUDING CANADA HAVE GRANTED ASYLUM BECAUSE OF THE PERSECUTION OF GAYS THE INS RECENTLY TURNED DOWN THE APPLICATION OF THE RUSSIAN WOMAN IN HER APPLICATION SHE HAD CITED IN DETAIL HER INVOLVEMENT IN UNDERGROUND GAY GROUPS IN MOSCOW IN THE 1980S AND NUMEROUS ARRESTS FOR HER ACTIVITIES BUT THE INS ASYLUM OFFICIAL FOUND THAT BECAUSE OF RECENT CHANGES IN THE FORMER SOVIET UNION THE WOMAN HADN'T PROVED THAT THE RISK OF PERSECUTION STILL EXISTED SAID MS GOLDBERG OF LAMBDA MS GOLDBERG SAID THE WOMAN WILL APPEAL HOLDING MASS TRIALS IN PRODUCTLIABILITY CASES A FAVORITE TOOL OF JUDGES DEALING WITH CROWDED DOCKETS MAY BECOME MUCH MORE DIFFICULT AS A RESULT OF A RECENT FEDERAL APPEALS COURT RULING THE RULING BY THE US APPEALS COURT IN NEW YORK STEMS FROM THE CONSOLIDATED TRIAL OF 48 OF 600 CASES KNOWN AS THE NEW YORK POWERHOUSE LITIGATION THE LAWSUITS WERE BROUGHT BY FORMER EMPLOYEES AT ELECTRIC POWER PLANTS IN NEW YORK WHO SAID THEY SUFFERED RESPIRATORY AND OTHER AILMENTS FROM EXPOSURE TO ASBESTOS THE SECOND US CIRCUIT COURT OF APPEALS RULED THAT FEDERAL JUDGE CHARLES SIFTON IN BROOKLYN UNFAIRLY LUMPED TOGETHER THE 48 CASES FOR TRIAL THE COURT SAID THERE WERE TOO MANY DISTINCTIONS BETWEEN THE VARIOUS PLAINTIFFS TO ALLOW FOR A CONSOLIDATED TRIAL THE DECISION WON'T HAVE A MAJOR IMPACT ON THE POWERHOUSE LITIGATION OVERALL BECAUSE A SETTLEMENT OF ABOUT 100 MILLION WAS REACHED FOR ALL BUT TWO OF THE 600 CASES AS A RESULT OF THE RULING THE REMAINING TWO WILL BE SENT BACK FOR A SECOND TRIAL WHILE THE APPEALS COURT DIDN'T PROHIBIT CONSOLIDATIONS IT RAISED QUESTIONS ABOUT THE ABILITY OF DEFENDANTS TO GET A FAIR TRIAL WHEN THEY ARE LUMPED TOGETHER THE MAELSTROM OF FACTS FIGURES AND WITNESSES WAS LIKELY TO LEAD TO JURY CONFUSION THE APPELLATE PANEL SAID IN A 21 DECISION THE COURT SPELLED OUT EIGHT FACTORS SUCH AS THE SIMILARITY OF THE PLACES WHERE VICTIMS WORKED AND THE DISEASES THEY DEVELOPED THAT JUDGES SHOULD CONSIDER BEFORE CONSOLIDATING LIABILITY TRIALS IN A DISSENT JUDGE JOHN WALKER SAID THE RULING COULD UNDERMINE EFFORTS AROUND THE COUNTRY TO CONSOLIDATE LIABILITY CASES JUDGE WALKER'S CONCERNS WERE ECHOED BY KENNETH FEINBERG A WASHINGTONBASED ARBITRATOR WHO WAS APPOINTED BY THE TRIAL JUDGE TO HELP NEGOTIATE THE POWERHOUSE SETTLEMENT THE RULING IS UNFORTUNATE IT THROWS ANOTHER JUDICIAL ROADBLOCK IN THE WAY OF TRIAL JUDGES TRYING TO DEAL FLEXIBLY WITH MASS LIABILITY LITIGATION MR FEINBERG SAID CREDITORS OF THE DEFUNCT GASTON & SNOW HAVE ASKED A BANKRUPTCY JUDGE TO END EFFORTS TO PUT TOGETHER A PAYMENT PLAN FOR CREDITORS AND INSTEAD ALLOW THEM TO SUE THE LAW FIRM'S FORMER PARTNERS SADDLED WITH AN ESTIMATED 63 MILLION IN DEBT THE BOSTON LAW FIRM DISSOLVED 20 MONTHS AGO AND FILED FOR PROTECTION FROM CREDITORS UNDER CHAPTER 11 OF THE US BANKRUPTCY CODE UNDER CHAPTER 11 THE PARTNERS CAN'T BE SUED DIRECTLY WHILE A PLAN IS WORKED OUT TO PAY CREDITORS ALFRED J BIANCO A PARTNER WITH KAYE SCHOLER FIERMAN HAYS & HANDLER IN NEW YORK WHICH REPRESENTS THE CREDITORS SAID THAT AFTER MORE THAN A YEAR OF TALKS ONLY 24 OF THE 151 FORMER GASTON & SNOW PARTNERS HAVE APPROVED THE PAYMENT PLAN NOW BEFORE THE COURT MR BIANCO SAID HE FILED A MOTION YESTERDAY ASKING US BANKRUPTCY COURT JUDGE CORNELIUS BLACKSHEAR IN NEW YORK TO CONVERT THE CASE FROM A CHAPTER 11 TO A CHAPTER 7 FILING BECAUSE IT'S UNLIKELY THE OTHER 127 PARTNERS WILL APPROVE THE PLAN MR BIANCO SAID THAT UNDER CHAPTER 7 THE FORMER PARTNERS WOULD BE INDIVIDUALLY AND JOINTLY LIABLE MEANING THAT INDIVIDUAL PARTNERS COULD BE SUED FOR THE ENTIRE AMOUNT THAT'S OWED MR BIANCO SAID THE CREDITORS ARE OWED MORE THAN 45 MILLION UNDER THE PROPOSED PAYMENT PLAN THE CREDITORS WOULD HAVE RECEIVED A TOTAL OF 23 MILLION OVER 10 YEARS WITH INDIVIDUAL PARTNERS CONTRIBUTING A PORTION BASED ON THEIR EARNINGS AT THE LAW FIRM THE PARTNERS COULD TAKE CARE OF THE CREDITORS' CLAIMS BY PAYING A TOTAL OF 196 MILLION THIS YEAR RATHER THAN OVER 10 YEARS PREVIOUSLY FORMER PARTNERS HAVE COMPLAINED THAT 23 MILLION WAS FAR TOO MUCH AND THEY HAVE OFFERED TO PAY ONLY 5 MILLION LESLIE D CORWIN A PARTNER AT MORRISON COHEN SINGER & WEINSTEIN IN NEW YORK WHICH REPRESENTS NINE FORMER PARTNERS SAID THE PARTNERS THEMSELVES WOULD HAVE TO FILE FOR PERSONAL BANKRUPTCYCOURT PROTECTION TO SHIELD THEMSELVES IF THE JUDGE APPROVES THE CONVERSION TO CHAPTER 7 ARTHUR S OLICK A PARTNER WITH ANDERSON KILL OLICK & OSHINSKY IN NEW YORK WHICH REPRESENTS 87 FORMER PARTNERS COULDN'T BE REACHED FOR COMMENT JUDGE BLACKSHEAR IS SCHEDULED TO HEAR ARGUMENTS ON THE MOTION JULY 9 JONATHAN M MOSES AND ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE UNDER A PROPOSED PLAN TO PAY CREDITORS OF THE DEFUNCT LAW FIRM GASTON & SNOW FORMER PARTNERS WOULD CONTRIBUTE BASED ON A FORMULA TAKING INTO ACCOUNT PAST EARNINGS PROJECTED EARNINGS AND ESTIMATED NET WORTH AMONG OTHER THINGS LAST FRIDAY'S LEGAL BEAT COLUMN INCORRECTLY SAID CONTRIBUTIONS WOULD BE BASED SOLELY ON THE PARTNERS' EARNINGS AT THE LAW FIRM THE COLUMN ALSO INCORRECTLY SAID THE LAW FIRM ANDERSON KILL OLICK & OSHINSKY REPRESENTS 87 FORMER PARTNERS THE CORRECT NUMBER IS 12 9306040038 930525 LETTERS TO THE EDITOR THE DREADED PLAGIARISM WORD' IN THE COURSE OF HIS UNFRIENDLY OPINION PIECE ON WALTER STEWART AND NED FEDER THE NEW INQUISITORS EDITORIAL PAGE APRIL 26 BERNARD DAVIS PERHAPS OUT OF IGNORANCE MAKES SOME POINTS ABOUT THE STEPHEN OATES PLAGIARISM CASE THAT ARE MISLEADING I WAS THE CRITIC WHO FIRST DOCUMENTED MR OATES'S UNATTRIBUTED BORROWINGS IN HIS LINCOLN BIOGRAPHY FROM BENJAMIN THOMAS'S EARLIER ABRAHAM LINCOLN AND I HAVE FOLLOWED THE CONTROVERSY CLOSELY EVER SINCE TO CLARIFY AND CORRECT WHAT DR DAVIS WRITES THIS CHARGE OF PLAGIARISM HAD BEEN RAISED EARLIER AGAINST PROF OATES AND HAD BEEN REJECTED BY COMMITTEES OF HIS PEERS I KNOW OF ONLY ONE COMMITTEE OF HIS PEERS THAT HAS DECLARED ITSELF PUBLICLY ON THE OATES MATTER A GROUP OF 23 PEOPLE MOST OF THEM PROFESSORS OF 19THCENTURY AMERICAN HISTORY AND A FEW PREEMINENT IN THE STUDY OF THE CIVIL WAR PERIOD BUT THESE PEERS FAR FROM SITTING IN SOLEMN PROFESSIONAL CONCLAVE WERE RECRUITED BY A PUBLIC RELATIONS FIRM RETAINED BY MR OATES THEY NEVER MET NEVER DELIBERATED AND SOME OF THEM TO MY PERSONAL KNOWLEDGE DID NOT EVEN READ THE DOCUMENTS IN QUESTION BEFORE ALLOWING THEIR NAMES TO BE USED IN AN APRIL 29 1991 PRESS RELEASE THAT CONCLUDED THE UNDERSIGNED HISTORIANS HAVE EXAMINED THIS ISSUE AND REJECT THE COMPLAINT AGAINST PROFESSOR OATES AS GROUNDLESS IRONICALLY SINCE THE STATEMENT APPEARED SEVERAL OF ITS MOST DISTINGUISHED SIGNERS RECOGNIZING THAT THEY HAD RUSHED TO JUDGMENT HAVE STUDIED THE EVIDENCE MORE CLOSELY AND CONSEQUENTLY CHANGED THEIR MINDS THEY ARE NOW CONVINCED THAT MR OATES DID IN FACT PLAGIARIZE MR THOMAS THIS IS A PLAIN ENOUGH JUDGMENT YET BECAUSE IT DOES NOT CONTAIN THE DREADED P WORD IT IS UNSATISFACTORY TO A SCHOLARLY COMMUNITY WISHING TO UNDERSTAND JUST WHAT PLAGIARISM IS IF NOT DERIVATIVE TO AN EXTENT REQUIRING GREATER ACKNOWLEDGEMENT THEN WHAT WITH THE PROBLEM OF DEFINITION IN MIND MESSRS STEWART AND FEDER NOW WANT THE AHA TO REOPEN THE OATES CASE AND HAVE PLACED NEW FORMAL CHARGES OF PLAGIARISM WITH THE ASSOCIATION THEY HAVE SUBMITTED AS EVIDENCE A LARGE NUMBER OF INSTANCES OF POSSIBLE PLAGIARISM DETECTED IN SOME OF MR OATES'S OTHER BOOKS PARTICULARLY THE BIOGRAPHIES OF MARTIN LUTHER KING JR AND WILLIAM FAULKNER EVIDENCE GENERATED BY THEIR COMPUTER PROGRAM POPULARLY CALLED THE PLAGIARISM MACHINE THIS THEY BELIEVE THEY ARE PROFESSIONALLY OBLIGATED TO DO AND I THINK THAT MANY SCHOLARS SCIENTISTS AND HUMANISTS ALIKE WILL AGREE WITH THEM WHAT MESSRS STEWART AND FEDER DO FOR A LIVING AND WHAT THEIR EMPLOYERS THE NATIONAL INSTITUTES OF HEALTH ARE TRYING TO PUNISH THEM FOR IS VITALLY IMPORTANT TO RESEARCH AND EMPHATICALLY IN THE PUBLIC INTEREST IN THE OATES CASE THEIR FINDINGS HARDLY CONSTITUTE PERSECUTION AS DR DAVIS TAKING THE INSTITUTIONAL AND BUREAUCRATIC VIEW WOULD HAVE IT PART OF THE PUBLISHED PROFESSIONAL WORK OF STEPHEN OATES HAS HAD AN INQUIRY THE RESULTS OF WHICH POINT TO PLAGIARISM AND MAY SOON HAVE ANOTHER BUT MR OATES HIMSELF HAS NOT BEEN SUBJECTED TO AN INQUISITION SEE RELATED LETTERS LETTERS TO THE EDITOR BEWARE ALL WRITERS YOU MAY BE NEXT WSJ JUNE 4 1993 9305250100 YY93 MM06 9306040026 930512 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB AS THEY BUMP THEIR WAY THROUGH THE ROUGH OPENING MONTHS OF THE CLINTON ERA DEMOCRATS MIGHT WANT TO STOP AND LISTEN TO BILL BRADLEY FOR A FEW MINUTES THE DEMOCRATIC SENATOR FROM NEW JERSEY IS AN INDEPENDENT THINKER WHO HAS A KNACK FOR SENSING EARLY IN THE GAME WHERE PUBLIC POLICY SHOULD GO TODAY HE OFFERS A REMARKABLY BLUNT ANALYSIS DEFICIT AND DEBT HAVE BECOME FAR AND AWAY THE COUNTRY'S MOST INSIDIOUS PROBLEMS AND IT'S NO LONGER POSSIBLE TO PRETEND OTHERWISE THE POSITION WE'VE GOT OURSELVES IN OVER THE LAST 12 YEARS IS ONE THAT WILL NOT ONLY NOT SUSTAIN OUR LIVING STANDARDS BUT WILL LEAD TO A DETERIORATION OF THOSE LIVING STANDARDS OVER THE NEXT 30 YEARS IF NOTHING IS DONE HE SAYS THUS HE ARGUES ANY POLITICAL PARTY THAT WANTS TO HELP BOTH THE COUNTRY AND ITSELF WILL SUBJUGATE OTHER GOALS TO DEFICIT REDUCTION SUCCEEDING IN THIS EFFORT WILL REQUIRE BOTH BREAKING SOME CHINA AND SPROUTING SOME NEW IDEAS TYPICALLY SEN BRADLEY HAS A FEW IDEAS TO OFFER SOME ARE STARTLING COMING FROM A MODERATETOLIBERAL DEMOCRAT AND SOME WON'T ENTIRELY PLEASE THE CLINTON WHITE HOUSE BUT SEN BRADLEY'S VIEWS ARE A GOOD INDICATOR OF WHERE INTELLECTUAL FORCES ARE FLOWING WITHIN THE DEMOCRATIC PARTY IN AN INTERVIEW FROM BEHIND HIS CLUTTERED SENATE DESK SEN BRADLEY SAYS HE PLANS TO PROPOSE THAT ALL REVENUE GENERATED BY THE CLINTON ADMINISTRATION'S TAX INCREASES GO INTO A NEW FUND DEDICATED STRICTLY TO CUTTING THE DEFICIT THAT'S GOING TO BE MY THING HE PROMISES HAVE A LITTLE FUND THERE A DEFICIT REDUCTION TRUST FUND ALL TAXES DEDICATED TO IT FROM HIS SEAT ON THE SENATE FINANCE COMMITTEE SEN BRADLEY CAN ADVANCE SUCH A NOTION WHICH HE'S WILLING TO COUPLE WITH CUTS IN SPENDING ON ENTITLEMENTS AND DEFENSE THE IDEA WHICH WOULD LIMIT WHITE HOUSE FREEDOM TO MANEUVER RESEMBLES ONE GEORGE BUSH ADVANCED LAST YEAR BEYOND THAT SEN BRADLEY OFFERS A MORE RADICAL SUGGESTION TO TAKE UP ONCE THE BASIC CLINTON ECONOMIC PLAN IS PASSED IF A BIG PROBLEM WITH THE DEFICIT IS THAT IT SUCKS MONEY AWAY FROM SAVINGS AND INVESTMENTS HOW ABOUT A MANDATED SAVINGS PLAN IN WHICH AMERICANS ARE REQUIRED TO SAVE A PERCENTAGE OF INCOME THE QUESTION THEN IS DO YOU WANT TAX AND SPEND OR SAVE AND INVEST SEN BRADLEY ASKS DO YOU WANT THE GOVERNMENT TO HAVE YOUR MONEY OR DO YOU WANT TO HAVE YOUR MONEY MANDATED IN YOUR OWN ACCOUNT IT SEEMS A KIND OF EATYOURSPINACH APPROACH TO SAVINGS BUT THE VIRTUE HE ARGUES IS THAT MONEY WOULD FLOW THROUGH SAVINGS ACCOUNTS INTO INVESTMENTS IT'S AVAILABLE FOR WHATEVER BANKS AND FINANCIAL INSTITUTIONS ARE GOING TO USE IT FOR WHICH MEANS THEY'RE GOING TO PUT IT BACK INTO THE ECONOMY MAYBE BY FINANCING SMALL BUSINESS MAYBE BY FINANCING EQUIPMENT MAYBE BY FINANCING COLLEGE EDUCATIONS HIS OBSESSION WITH DEBT AND DEFICIT HAS LED SEN BRADLEY INTO ANOTHER APOSTASY IN RECENT WEEKS HE HAS ENDORSED A LINEITEM VETO THAT WOULD GIVE A PRESIDENT THE POWER TO STRIKE BOTH INDIVIDUAL SPENDING PROGRAMS AND SPECIAL TAX BREAKS FROM BILLS PASSED BY CONGRESS THAT REVERSES A LONGHELD POSITION NOBODY REALLY BELIEVES A LINEITEM VETO BY ALLOWING A PRESIDENT TO KILL A FEW SECONDTIER PORK PROJECTS AND SWEETHEART TAX DEALS WOULD DO MUCH TO REDUCE A 300 BILLION DEFICIT BUT SEN BRADLEY NOW BACKS A VETO TO HELP LEVEL THE PLAYING FIELD IN THE BROADER STRUGGLE AGAINST THE SPECIALINTEREST POLITICS THAT DRIVE UP THE DEFICIT IN COUNTLESS OTHER WAYS THE PROBLEM OF THE POLITICAL PROCESS IS THE DOMINANCE OF THE SPECIAL INTERESTS AT THE EXPENSE OF THE GENERAL INTERESTS HE SAYS THE LINEITEM VETO HE ARGUES WILL CREATE A CONTEXT WHERE YOU CAN DO BIGGER THINGS BUT PERHAPS THE CLEAREST INDICATION OF HOW SERIOUSLY A MODERATE SUCH AS SEN BRADLEY NOW VIEWS THE DEFICIT COMES WHEN HE DISCUSSES OTHER ISSUES NEAR TO HIS HEART AIDING DEMOCRATS IN RUSSIA AND REVIVING AMERICA'S INNER CITIES WHATEVER YOU DO IN THESE OTHER AREAS REALLY HAS TO BE AT THE EXPENSE OF OTHER SPENDING OR INCREASED TAXES AND NOT AT THE EXPENSE OF INCREASING THE DEFICIT HE SAYS SEN BRADLEY SAYS HE HAS MORE IDEAS IN HIS QUIVER TO BE DRAWN OUT LATER BUT FOR NOW THE GOSPEL ACCORDING TO BRADLEY SUGGESTS PRESIDENT CLINTON NEEDS TO VIEW DEFICIT MANIA NOT AS A PASSING SPRING FEVER BUT AS A GROWING PHENOMENON SEN BRADLEY WHOSE POLITICAL INSTINCTS WERE SHARPENED BY A NEAR LOSS IN THE 1990 ELECTION SAYS THAT WHAT AMERICANS NEED ARE TRUTH TELLERS THAT'S WHAT I'M TRYING TO BE SEE RELATED LETTER LETTERS TO THE EDITOR BUM ADVICE THEN BUM ADVICE NOW WSJ JUNE 4 1993 9305120154 YY93 MM06 9306030166 930603 WHO'S NEWS CARTER HAWLEY HALE STORES INC CARTER HAWLEY HALE STORES INC LOS ANGELES LEANNE S MATTES 35 YEARS OLD FORMERLY DIRECTOR ADVERTISING ADMINISTRATION WAS NAMED TO THE NEW POST OF VICE PRESIDENT SALES PROMOTION ADMINISTRATION OF THIS RETAILING CONCERN 9306030165 930603 SEAGRAM EXPECTS TO HAVE SOME INPUT' AT TIME WARNER WILL LIFT STAKE SLOWLY BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL SEAGRAM CO'S CHAIRMAN AND CHIEF EXECUTIVE SAID THE COMPANY WON'T RUSH TO RAISE ITS STAKE IN TIME WARNER INC BUT DOES EXPECT TO HAVE SOME INPUT WITH TIME WARNER MANAGEMENT FOLLOWING SEAGRAM'S ANNUAL MEETING EDGAR BRONFMAN TOLD REPORTERS HIS SON EDGAR JR PRESIDENT AND CHIEF OPERATING OFFICER IS TO MEET SOON WITH GERALD LEVIN TIME WARNER'S CHIEF EXECUTIVE ASKED WHETHER THE INTERNATIONAL SPIRITS AND JUICE MAKER INTENDS TO SEEK BOARD REPRESENTATION AT TIME WARNER THE ELDER MR BRONFMAN SAID WE HAVE NO PLANS BUT ADDED WHAT DISCUSSIONS THE MEETING WITH MR LEVIN WILL LEAD TO IN THE LONG RUN I REALLY DON'T KNOW I CAN'T BE COMMITTAL AT THIS POINT MR BRONFMAN SAID SEAGRAM DECIDED TO BUILD ITS STAKE IN TIME WARNER NOW AT 57 TO AS MUCH AS 15 BECAUSE WE'LL BE ABLE TO HAVE SOME INPUT BUT WE DON'T WANT TO RUN THE COMPANY WE WANT TO BE SUPPORTIVE OF MANAGEMENT HIS REMARKS SEEMED TO CONFIRM SPECULATION FOLLOWING LAST WEEK'S DISCLOSURE OF THE INVESTMENT THAT SEAGRAM DOESN'T PLAN TO BE PURELY A PASSIVE INVESTOR BUT HE ALSO STRESSED THAT SEAGRAM AIMS TO PLAY A FRIENDLY LONGTERM ROLE MARKET CONDITIONS WILL DETERMINE HOW LONG IT TAKES TO REACH THE 15 MARK MR BRONFMAN SAID IT COULD TAKE A YEAR IT COULD TAKE A FEW MONTHS WE'RE CERTAINLY NOT GOING TO PUSH THE STOCK UP BY CHASING IT IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY TIME WARNER SHARES ROSE 875 CENTS TO 38 AND SEAGRAM FELL 1 TO 27875 SEAGRAM CHOSE TO INVEST IN TIME WARNER BECAUSE WE BELIEVE VERY STRONGLY IN COMMUNICATIONS AND IN ENTERTAINMENT AS THE COMING BIG THING IN THE '90S AND THE YEARS BEYOND MR BRONFMAN SAID IN THE SHORT RUN THOUGH MR BRONFMAN ACKNOWLEDGED THAT SEAGRAM WILL HAVE TO USE PART OF ITS CASH FLOW TO HELP COVER INTEREST PAYMENTS ON THE DEBT USED TO FINANCE THE STOCK PURCHASES SEAGRAM HAS A 2 BILLION LINE OF CREDIT FROM BANKS TO HELP FINANCE THE INVESTMENT HE SAID MR BRONFMAN SAID HE WAS PLEASED BY U S WEST INC'S RECENT AGREEMENT TO PAY 25 BILLION FOR A 25 STAKE IN TIME WARNER'S ENTERTAINMENT UNIT PARTLY BECAUSE THE COMBINATION OF TELEPHONE COMPANIES AND CABLETELEVISION OPERATORS WILL BE TERRIBLY IMPORTANT TO THE FUTURE OF THE COMMUNICATIONS BUSINESS BUT HE WAS CAREFUL TO NOTE THAT SEAGRAM HASN'T HAD A CHANCE TO STUDY THE ENTIRE TRANSACTION WITH U S WEST SOME OBSERVERS HAVE WONDERED WHETHER SEAGRAM WILL OBJECT TO U S WEST GETTING PART OF TIME WARNER'S FUTURE CASH FLOW MR BRONFMAN CONFIRMED THAT SEAGRAM A YEAR AGO LOOKED INTO A POSSIBLE INVESTMENT IN TIME WARNER'S ENTERTAINMENT UNIT WITH PAUL DESMARAIS A SEAGRAM DIRECTOR AND CHAIRMAN OF POWER CORP OF CANADA A MONTREAL HOLDING COMPANY WITH FINANCIAL SERVICES AND MEDIA INTERESTS BUT MR BRONFMAN INDICATED THE TALKS NEVER REACHED AN ADVANCED STAGE MR DESMARAIS QUESTIONED BY REPORTERS ON HIS WAY INTO THE MEETING ALSO CONFIRMED LAST YEAR'S TALKS HE DECLINED TO COMMENT ON WHETHER POWER CORP PLANS TO BUILD ITS INVESTMENT IN TIME WARNER BEYOND THE THREE MILLION SHARES IT NOW HOLDS SEPARATELY SEAGRAM REPORTED THAT IT EARNED 162 MILLION OR 43 CENTS A SHARE ON SALES OF 12 BILLION IN THE FIRST QUARTER ENDED APRIL 30 IN THE YEAREARLIER PERIOD THE COMPANY REPORTED A LOSS OF 122 BILLION OR 323 A SHARE AFTER ACCOUNTING CHANGES EXCLUDING THE EFFECTS OF THE ACCOUNTING CHANGES YEARAGO EARNINGS WERE 153 MILLION OR 41 CENTS A SHARE ON SALES OF 124 BILLION AT THE ANNUAL MEETING EDWARD F MCDONNELL 57YEAROLD PRESIDENT OF SEAGRAM'S SPIRITS AND WINE GROUP WAS ELECTED A DIRECTOR INCREASING SEAGRAM'S BOARD MEMBERSHIP TO 19 TIME WARNER SAID IT HAS NO COMMENT ON THE REMARKS MADE AT THE SEAGRAM ANNUAL MEETING 9306030164 930603 DIVIDEND NEWS DWYER GROUP DWYER GROUP FORMERLY MR ROOTER CORP ANNOUNCED A 1FOR2 REVERSE SPLIT OF ITS COMMON STOCK THE WACO TEXAS HOLDING COMPANY SAID THE SPLIT EFFECTIVE JUNE 1 REDUCES THE NUMBER OF SHARES OUTSTANDING TO 6187991 FROM 12375981 9306030163 930603 INDUSTRY FOCUS US STEEL INDUSTRY'S NEW STRENGTH MAY SOON WEAKEN RULINGS ON TRADE DISPUTES COULD SEND IMPORTS RUSHING BACK INTO THE MARKET BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL THE US STEEL INDUSTRY NOW ENJOYING THE FRUITS OF ITS TRADE LITIGATION MAY SOON FIND ITSELF CHOKING ON A FEW PITS INTEGRATED AMERICAN STEELMAKERS ARE ROARING BACK TO PROFITABILITY AFTER TWO YEARS OF LOSSES THEY HAVE PUSHED THROUGH THREE PRICE INCREASES THIS YEAR WITH A FOURTH EXPECTED IN THE FOURTH QUARTER A BIG REASON PRELIMINARY RULINGS ON A BARRAGE OF TRADE LAWSUITS THAT HAD VIRTUALLY CLOSED THE US MARKET IMPORTS IN FEBRUARY SHRIVELED TO 114 OF CONSUMPTION FROM 168 A YEAR EARLIER STEEL ORDERS HAVE EXCEEDED FULL CAPACITY PUTTING SOME US PRODUCERS IN THE AWKWARD POSITION OF IMPORTING MORE SEMIFINISHED STEEL TO KEEP THEIR MILLS RUNNING THE SUCCESS IS A PRIME EXAMPLE OF WHY IT IS CRITICALLY IMPORTANT TO AMERICA'S FUTURE STANDING AS AN ECONOMIC POWER THAT STRONG AND EFFECTIVE US TRADE LAWS BE MAINTAINED BETHHEM STEEL CORP CHAIRMAN CURTIS H BARNETTE DECLARED LAST WEEK BUT WILL IT LAST IMPORTS IN MARCH REBOUNDED TO 155 OF THE MARKET COMPARED WITH 16 A YEAR EARLIER IT COULD BE A STATISTICAL BLIP BUT SOME ATTRIBUTE THIS TO A RISE IN IMPORTS FROM CHINA RUSSIA INDONESIA AND OTHERS NOT NAMED IN THE ORIGINAL LAWSUITS THAT COULD FORCE US PRODUCERS TO LAUNCH A SECOND ROUND OF LITIGATION THE US INDUSTRY'S NEW STRENGTH COULD BE FURTHER WEAKENED BY EITHER OF TWO COMING GOVERNMENT RULINGS ON JUNE 21 THE COMMERCE DEPARTMENT MAKES ITS FINAL RULING ON THE TRADE CASES AND ON JULY 27 THE INTERNATIONAL TRADE COMMISSION'S FINAL RULING IS DUE A REVERSAL OF PRELIMINARY VICTORIES AT EITHER DEPARTMENT COULD SEND IMPORTS RUSHING BACK INTO THE MARKET LEVELING PRICE INCREASES WE BELIEVE THE DECISIONS OUT OF COMMERCE AND THE ITC WILL REVERSE OR MODIFY A LOT IF NOT MOST OF THE EARLIER DECISIONS SAYS BILL LANE GOVERNMENT AFFAIRS MANAGER FOR CATERPILLAR INC WHICH CALLS THE CASES UNWARRANTED THERE IS ALSO A POSSIBILITY THAT THE GOVERNMENT WILL NEGOTIATE A SETTLEMENT WITH FOREIGNERS THAT WOULD DERAIL THE CASES THE COMMERCE DEPARTMENT IS NEGOTIATING WITH THE 10 NATIONS THAT REQUESTED A SETTLEMENT LAST MONTH ALTHOUGH IT PROMISES THAT A SETTLEMENT WON'T HARM THE INDUSTRY EVEN SO PAINEWEBBER ANALYST PETER MARCUS PUTS THE INDUSTRY'S CHANCES OF VICTORY AT ONLY 60 A DEFEAT WOULD BE A TREMENDOUS SETBACK EVEN IF THE INDUSTRY WINS ITS TRADE SUITS SOME BELIEVE THE ACTIONS WHATEVER THE MERITS COULD ULTIMATELY DO THE INDUSTRY MORE HARM THAN GOOD BY GIVING STEELMAKERS SOME MORE BREATHING ROOM THE TRADE SUITS HAVE ALLOWED INEFFICIENT CAPACITY TO REMAIN WHILE FUELING THE GROWTH OF MINIMILLS AND MAKING THE DOMESTIC INDUSTRY MORE ISOLATED AND PAROCHIAL THE TRADE ACTIONS ARE GOOD SHORT TERM BUT BAD LONG TERM SAYS AD LITTLE CONSULTANT MICHAEL SHANAHAN A LOT OF COMPANIES THAT HAD BEEN ON THE BRINK WILL AT LEAST MAKE IT TO THE NEXT DOWNTURN BUT THEY CAN'T REPEAT THIS ACT AD INFINITUM ADDS ARTHUR DENZAU AN ECONOMICS PROFESSOR AT WASHINGTON UNIVERSITY OF ST LOUIS IT'S NOT A LONGTERM SUCCESS FOR BASIC INTEGRATED STEEL IT JUST STAVES OFF DISASTER FOR ONE THING THE CASES COULD INADVERTENTLY CUT OFF THE FLOW OF FOREIGN INVESTMENT IN BIG MILLS THAT HAVE KEPT US PRODUCERS ALIVE AFTER SPENDING NEARLY 7 BILLION TO SAVE THE US STEEL INDUSTRY IN THE PAST DECADE JAPANESE COMPANIES FEEL THEY'VE PUT IN ENOUGH MONEY SAYS YOSHITAKA FUJITANI PRESIDENT OF NKK CORP'S NKK AMERICA THE JAPAN IRON AND STEEL FEDERATION HAS WARNED THAT THE CASES RAISE QUESTIONS ABOUT THE WISDOM OF CONTINUED PARTNERSHIPS AND SK LEE PRESIDENT OF POHANG IRON & STEEL CO'S AMERICAN UNIT SAYS THE COMPANY MAY HAVE TO THINK AGAIN ABOUT ITS JOINT VENTURE WITH USX CORP'S US STEEL IF THE TRADE CASES PREVAIL STEEL'S DEFENDERS SAY THE TRADE CASES WON'T HURT IN THE END YOU'RE GOING TO SEE A SCRAPPIER BUNCH OF EVEN MORE EFFICIENT PRODUCERS FIVE YEARS OUT SAYS ANDREW WECHSLER OF THE LAW AND ECONOMICS CONSULTING GROUP WHICH WORKS FOR THE INDUSTRY BUT THE TRADE CASES HAVE ALREADY HAD ONE UNINTENDED EFFECT ACCELERATING THE SHIFT AWAY FROM THE BIG TRADITIONAL MILLS WHICH FILED THE LAWSUITS TO DOMESTIC MINIMILLS LURED TO THE MARKET BY HIGHER STEEL PRICES ANGRY CUSTOMERS ARE FUELING THE MOVE TO THESE MINIMILLS IT'S AN ADDED INCENTIVE TO MAKE SURE YOU HAVE AN ALTERNATIVE SOURCE OF SUPPLY SAYS MR LANE AT CATERPILLAR WHICH HAS BEEN BUYING MORE STEEL FROM MINIMILLS CANADIAN PRODUCERS DOFASCO INC AND COSTEEL INC PLAN TO BUILD A MINIMILL IN THE US FOR EXAMPLE AND NUCOR CORP WILL BUILD A MILL WITH OREGON STEEL MILLS INC AND DOUBLE CAPACITY AT AN EXISTING MILL ALL OF THESE MILLS WILL MAKE SHEET STEEL THE BIG PRODUCERS' MAIN PRODUCT THE NEW AND EFFICIENT MINIMILL CAPACITY MAY NOT BE NOTICED IN TODAY'S TIGHT MARKET BUT IT COULD HURT TRADITIONAL PRODUCERS IN THE NEXT DOWNTURN PARTICULARLY IF THE GOOD TIMES CAUSE US STEELMAKERS TO GET FAT AGAIN WHILE STEELMAKERS HAVE MORE MONEY TO INVEST IN EQUIPMENT THE STRONG MARKET LEAVES LESS INCENTIVE TO CUT COSTS THAT COULD CAUSE AMERICANS TO FALL BEHIND PRODUCERS IN WESTERN EUROPE FOR EXAMPLE WHERE STEEL PRICES ARE NOW LOWER THAN US PRICES THE CASES ALSO HAVE EMBOLDENED THE UNITED STEELWORKERS WHICH MUST REACH CONTRACTS WITH MOST BIG PRODUCERS BY JULY 31 WITH STEEL PRICES FIRMING AND THE GOVERNMENT SUPPORTING THEM MORE VIGOROUSLY WE'RE VERY CONFIDENT OF ACHIEVING OUR BARGAINING GOALS A UNION SPOKESMAN SAYS IT WOULD BE A BAD STRATEGIC MOVE TO WALK THEMSELVES INTO A STRIKE WHEN CONDITIONS ARE SO FAVORABLE THE LABOR CONTRACT REACHED WITH INLAND STEEL INDUSTRIES INC LAST WEEK WHILE ALLOWING THE COMPANY TO EASE WORK RULES AND TRIM ITS WORK FORCE THROUGH ATTRITION GAVE THE UNION WAGE AND PENSION GAINS OVER SIX YEARS A SEAT ON THE BOARD AND A NOLAYOFF POLICY SUCH ITEMS COULD PROVE COSTLY IF THE MARKET DETERIORATES IN THE NEXT SEVERAL YEARS WE THINK SOMETIME BEFORE THE END OF THE '90S THERE'S GOING TO BE A DEATH SPIRAL IN STEEL PRICES SAYS MR MARCUS THESE BIG COMPANIES DON'T HAVE TIME IN THEIR FAVOR 9306030162 930603 ABREAST OF THE MARKET STOCKS RISE SLIGHTLY AS INDUSTRIALS MOVE TINY STEP CLOSER TO RECORD BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK STOCKS ROSE SLIGHTLY AS THE DOW JONES INDUSTRIAL AVERAGE MOVED A BABY STEP CLOSER TO A RECORD AFTER TRADING AS HIGH AS 356230 THE INDUSTRIAL AVERAGE FINISHED UP 111 POINTS TO 355345 IN HEAVY TRADING THE WIDELY WATCHED STOCK MARKET BAROMETER ENDED JUST SHY OF ITS RECORD OF 355483 WHICH WAS REACHED LAST THURSDAY THE STANDARD & POOR'S 500STOCK INDEX EDGED UP 002 POINT TO 45385 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SLIPPED 001 POINT TO 25027 MEANWHILE ON THE AMERICAN STOCK EXCHANGE THE MARKET VALUE INDEX HIT A HIGH GAINING 137 TO 43997 YOU COULD SAY THERE'S A TITANIC BATTLE GOING ON BETWEEN THE BULLS AND THE BEARS AND THE MARKET ENDED IN A DRAW YESTERDAY SAID DAVID SHULMAN CHIEF EQUITY STRATEGIST AT SALOMON BROTHERS MR SHULMAN SAID THE COMMERCE DEPARTMENT'S REPORT THAT SALES OF NEW SINGLEFAMILY HOUSES SURGED 227 IN APRIL HELPED BUOY SEVERAL HOMEBUILDING STOCKS KAUFMAN & BROAD HOME ADDED 1/2 TO 17 7/8 PHM CORP JUMPED 1 1/8 TO 32 CENTEX GAINED 1 1/4 TO 33 1/4 AND TOLL BROTHERS ROSE 1/2 TO 14 1/4 BUT STOCKS OF HEALTH MAINTENANCE ORGANIZATIONS AND SOME DRUG AND HEALTHCARE COMPANIES WERE STRUCK DOWN BY A STRING OF DOWNGRADES FROM SANFORD C BERNSTEIN & CO ANALYST KENNETH ABRAMOWITZ US HEALTHCARE SLUMPED 2 1/4 TO 46 1/8 FOUNDATION HEALTH FELL 2 TO 30 3/8 JOHNSON & JOHNSON SLID 1/2 TO 44 1/4 AND US SURGICAL DROPPED 3/8 TO 32 1/4 MICHAEL METZ CHIEF INVESTMENT STRATEGIST AT OPPENHEIMER SAID THAT THERE HAS BEEN A TREMENDOUS CHANGE IN PSYCHOLOGY OVER THE PAST FEW DAYS PRESIDENT CLINTON'S TALK ABOUT CUTTING SPENDING AND REDUCING PROPOSED TAX INCREASES HAVE HEARTENED MANY INVESTORS WHAT'S MORE FEARS OF AN UPSURGE IN INFLATION HAVE SUBSIDED AMID SIGNS THAT THE FEDERAL RESERVE INTENDS TO BE VIGILANT ABOUT PRICE PRESSURES THE LATEST EVIDENCE CAME YESTERDAY WHEN SAN FRANCISCO FEDERAL RESERVE PRESIDENT ROBERT PARRY SAID THE CENTRAL BANK MUST BE CAREFUL TO PRESERVE AND ADVANCE HARDWON GAINS AGAINST INFLATION BUT MR METZ SAID HE IS STILL SKEPTICAL ABOUT THE MARKET'S STRENGTH THIS IS A LOWCONVICTION MARKET THAT IS BEING FUELED BY EXCESS CASH SAYS MR METZ REMEMBER PORTFOLIO MANAGERS ARE HIRED TO PUT CASH TO WORK NOT RAISE CASH LEVELS ADVANCING ISSUES OUTNUMBERED DECLINERS 1007 TO 902 VOLUME ON THE BIG BOARD TOTALED 287040000 SHARES UP FROM 229620000 SHARES TUESDAY ECONOMICALLY SENSITIVE STOCKS ACCOUNTED FOR NEARLY ALL THE GAINS AMONG COMPONENTS OF THE INDUSTRIAL AVERAGE MINNESOTA MINING & MANUFACTURING JUMPED 1 TO 115 ALUMINUM CO OF AMERICA ROSE 7/8 TO 69 3/8 AND CATERPILLAR INCREASED 1/2 TO 74 3/4 MEANWHILE INTERNATIONAL BUSINESS MACHINES ROSE 1 7/8 TO 53 7/8 SHARES OF MANY CONSUMER PRODUCTS CONCERNS LOST GROUND TAMBRANDS SLUMPED 2 3/8 TO 42 7/8 AFTER THE WHITE PLAINS NY COMPANY PREDICTED ITS PROFIT FOR THE SECOND QUARTER AND ALL OF 1993 WILL FALL BELOW THE YEAREARLIER LEVELS THE COMPANY'S CHAIRMAN MARTIN FC EMMETT WAS SUCCEEDED BY HOWARD B WENTZ JR A DIRECTOR QMS INC PLUNGED 4 1/8 TO 9 3/4 PRUDENTIAL SECURITIES ANALYST B ALEX HENDERSON DOWNGRADED A RATING ON THE STOCK OF THE MOBILE ALA MAKER OF COMPUTER PRINTER PRODUCTS TO HOLD FROM BUY HANSON PLC TOPPED THE BIG BOARD MOST ACTIVE LIST CLOSING UNCHANGED AT 18 1/8 ON VOLUME OF 318 MILLION SHARES TRADERS TIED THE ACTIVITY TO STRATEGIES RELATED TO A DIVIDEND THE LONDON CONGLOMERATE WILL PAY NEXT MONTH TO HOLDERS OF RECORD JUNE 4 THESE STRATEGIES ARE OFTEN EMPLOYED BY INSTITUTIONS FOR TAX REASONS VIACOM JUMPED 2 TO 51 1/2 AFTER THE CABLETELEVISION SERVICES COMPANY SAID IT WILL TEST INTERACTIVE TELEVISION SERVICES AT ITS CASTRO VALLEY CALIF CABLE SYSTEM IN A JOINT PROJECT WITH AMERICAN TELEPHONE & TELEGRAPH AT&T SHARES WERE UNCHANGED AT 62 EVEN THOUGH TWO OF ITS COMPETITORS MCI COMMUNICATIONS AND BRITISH TELECOMMUNICATIONS DISCLOSED PLANS TO FORM A JOINT VENTURE AMERICAN DEPOSITARY RECEIPTS OF BRITISH TELECOM DROPPED 1 1/8 TO 65 1/8 IN OVERTHECOUNTER TRADING MCI STOCK CLIMBED 1 5/8 TO 54 3/8 DAYTON HUDSON FELL 1 1/2 TO 69 3/8 THE NATION'S MAJOR RETAILERS ARE EXPECTED TO RELEASE MONTHLY SALES DATA TODAY ANALYSTS EXPECT DAYTON BASED IN MINNEAPOLIS TO POST A DECLINE IN SAMESTORE SALES OR RECEIPTS FROM LOCATIONS THAT HAVE BEEN OPEN FOR AT LEAST ONE YEAR OVERALL THOUGH RETAILERS ARE EXPECTED TO POST SOLID RESULTS AMONG SHARES OF OTHER STORE OPERATORS SEARS ROEBUCK ADDED 1/2 TO 55 5/8 JC PENNEY INCREASED 1 1/4 TO 48 7/8 AND WALMART STORES ROSE 1/4 TO 28 3/8 AFTER THE MARKET CLOSED ALLSTATE'S HUGE OFFERING OF 785 MILLION COMMON SHARES WAS PRICED AT 27 A SHARE MAKING IT THE LARGEST INITIAL PUBLIC OFFERING BY A US COMPANY THE SHARES WERE SOLD THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO SEARS ROEBUCK ALLSTATE'S PARENT IS SELLING ABOUT 20 OF ITS ALLSTATE INSURANCE UNIT IN THE OFFERING FRUIT OF THE LOOM DROPPED 4 1/4 TO 31 5/8 AFTER ANALYSTS AT WERTHEIM SCHRODER & CO AND PRUDENTIAL SECURITIES CUT EARNINGS ESTIMATES FOR THIS YEAR AND NEXT A SPOKESMAN SAID THE COMPANY HAS ADVISED ANALYSTS TO TAKE A CONSERVATIVE APPROACH IN ESTIMATING ITS REVENUE THE CHICAGO CLOTHING COMPANY BEGAN AN INCENTIVE PROGRAM DESIGNED TO BOOST SALES OF ITS ACTIVEWEAR WHICH INCLUDES TSHIRTS SWEATSHIRTS AND SHORTS 9306030161 930603 ECONOMY BENTSEN SEES PLAN AS KEY TO IMPROVING CONFIDENCE PARIS TREASURY SECRETARY LLOYD BENTSEN SAYS HE KNOWS HOW TO IMPROVE CONFIDENCE IN THE US ECONOMY GET THE SENATE TO PASS PRESIDENT CLINTON'S DEFICITREDUCTION PLAN OR A REASONABLE FACSIMILE SENATE PASSAGE OF THE PLAN HE SAID WOULD RESOLVE DOUBTS ABOUT GOVERNMENT POLICY THAT ARE HURTING THE ECONOMY THERE WILL BE A SUBSTANTIAL IMPROVEMENT IN CONFIDENCE GIVEN SOME CERTAINTY HE TOLD REPORTERS HERE MR BENTSEN WHO IS IN PARIS FOR A MEETING OF THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT CONFIRMED THAT HE HAS TOLD MEMBERS OF CONGRESS HE EXPECTS THE SENATE TO PARE THE PRESIDENT'S PROPOSED ENERGY TAX BUT HE SAID I HAVE NOT COMMITTED TO ANY SPECIFIC TARGET REDUCING THE TAX DEPENDS ON FINDING SPENDING CUTS THAT WILL PRESERVE THE PRESIDENT'S OBJECT OF REDUCING THE DEFICIT BY 500 BILLION DURING THE NEXT FIVE YEARS HE SAID MR BENTSEN ADDING HIS VOICE TO OTHER US AND JAPANESE OFFICIALS WHO HAVE BEEN TRYING TO STOP THE DOLLAR'S FALL AGAINST THE YEN IN RECENT DAYS ALSO TOLD REPORTERS THERE SEEMS TO HAVE BEEN SOME MISUNDERSTANDING WE ARE NOT SEEKING APPRECIATION OF THE YEN 9306030160 930603 TECHNOLOGY FDA APPROVES COOK DEVICE THAT CAN UNCLOG ARTERIES WASHINGTON THE FOOD AND DRUG ADMINISTRATION APPROVED A COOK INC DEVICE DESIGNED TO HELP KEEP BLOCKED HEART ARTERIES OPEN THE GIANTURCOROUBIN FLEXSTENT CORONARY STENT WAS CLEARED FOR USE WITH PATIENTS WHOSE HEART VESSELS CLOSE OR THREATEN TO CLOSE DURING BALLOON ANGIOPLASTY A PROCEDURE USED TO UNCLOG HEART ARTERIES IN PATIENTS WITH ATHEROSCLEROSIS IN THAT DISEASE ARTERIES BECOME BLOCKED WITH FATTY PLAQUE CAUSING CHEST PAIN HEART ATTACK AND DEATH DURING ANGIOPLASTY A BALLOONTIPPED CATHETER IS THREADED THROUGH AN ARTERY IN THE LEG OR ARM TO THE HEART WHEN IT REACHES THE BLOCKAGE THE BALLOON IS INFLATED TO PUSH THE PLAQUE AGAINST THE ARTERY WALLS THE BALLOON IS THEN DEFLATED AND THE CATHETER WITHDRAWN IN ABOUT 2 TO 11 OF PATIENTS THE ANGIOPLASTY FAILS AND THE ARTERY CLOSES FORCING EMERGENCY SURGERY OR CAUSING HEART ATTACK OR DEATH THE STENT PROVIDES ANOTHER ALTERNATIVE WHEN THE ARTERY IS THREATENING TO CLOSE THE BALLOON CATHETER IS WITHDRAWN AND A STENTED BALLOON CATHETER IS INSERTED THE FDA SAID A PORTION OF THIS CATHETER REMAINS IN PLACE AFTER THE BALLOON IS WITHDRAWN COOK A MAKER OF MEDICAL EQUIPMENT IS BASED IN BLOOMINGTON IND 9306030159 930603 ELECTRICCAR STATEMENT BY BIG THREE IS EXPECTED DEARBORN MICH FORD MOTOR CO CHAIRMAN HAROLD RED POLING SAID HE EXPECTS THE BIG THREE AUTO MAKERS WILL MAKE AN ANNOUNCEMENT WITHIN THE NEXT THREE WEEKS REGARDING ELECTRIC VEHICLES BUT HE WOULDN'T ELABORATE JOHN MCTAGUE FORD'S VICE PRESIDENT OF TECHNICAL AFFAIRS SAID HIS COMPANY HAS BEEN IN INTENSE DISCUSSIONS WITH GENERAL MOTORS CORP AND CHRYSLER CORP ABOUT COLLABORATING ON ELECTRICVEHICLE TECHNOLOGY WE'VE DISCUSSED EVERYTHING INCLUDING THE BATTERY CONSORTIUM TECHNOLOGY EXCHANGE AND POTENTIAL EARLY JOINT PRODUCTION MR MCTAGUE SAID BUT NO DECISIONS HAVE BEEN MADE HE ADDED FORD CHRYSLER AND GM SAID LAST DECEMBER THAT THEY WOULD EXPLORE A BROADER ALLIANCE ON ELECTRICVEHICLE TECHNOLOGY POSSIBLY LEADING TO JOINT DEVELOPMENT AND PRODUCTION OF KEY PARTS 9306030158 930603 GE GIVES OLD HEADQUARTERS TO COLUMBIA UNIVERSITY NEW YORK GENERAL ELECTRIC CO DONATED ITS FORMER HEADQUARTERS IN MIDTOWN MANHATTAN TO COLUMBIA UNIVERSITY WHICH MAY MOVE SOME OF ITS EDUCATIONAL PROGRAMS TO THE SITE THE UNIVERSITY SAID IT WOULD CONSIDER USING THE 50STORY BUILDING FOR PARTS OF ITS BUSINESS JOURNALISM INTERNATIONAL AFFAIRS AND GENERAL STUDIES SCHOOLS IT ALSO WILL CONSIDER USING THE SITE FOR ALUMNI GATHERINGS AND CONFERENCES GE DONATED THE UNDERLYING LAND AS WELL AS THE BUILDING COLUMBIA AND GE ESTIMATED THE VALUE OF THE 62YEAROLD BUILDING AT ABOUT 40 MILLION THE DONATION IS ONE OF THE LARGEST GIFTS TO THE UNIVERSITY SAID COLUMBIA UNIVERSITY PRESIDENT MICHAEL I SOVERN TWO MONTHS AGO BILLIONAIRE JOHN W KLUGE GAVE 60 MILLION TO SUPPORT FINANCIAL AID PROGRAMS FOR MINORITY STUDENTS GE'S SENIOR VICE PRESIDENT OF FINANCE DENNIS D DAMMERMAN SAID YESTERDAY THAT COLUMBIA'S NEEDS FOR EXPANSION SPACE AND OUR DESIRE TO SEE THIS STRUCTURE FULLY UTILIZED MAKE TODAY'S TRANSACTION A NATURAL THE BUILDING ORIGINALLY OCCUPIED BY THE BROADCAST COMPANY RCA SERVED AS GE'S HEADQUARTERS UNTIL 1974 WHEN THE COMPANY MOVED TO FAIRFIELD CONN THE BUILDING IS ABOUT TWOTHIRDS UNOCCUPIED AND GE HAS BEEN USING ABOUT 30 OF THE SPACE FOR ITS OWN OPERATIONS 9306030157 930603 PLAN IS APPROVED FOR CIRCLE K'S SALE TO INVESTCORP UNIT BY BOB ORTEGA STAFF REPORTER OF THE WALL STREET JOURNAL CIRCLE K CORP GAINED AN INTERIM COURT ORDER CONFIRMING ITS PLAN TO EMERGE FROM BANKRUPTCY PROCEEDINGS UNDER NEW OWNERSHIP US BANKRUPTCY JUDGE GEORGE B NIELSEN JR SAID HE WOULD ISSUE A FINAL ORDER WHEN HE RETURNS FROM VACATION IN TWO WEEKS ACCORDING TO ATTORNEYS INVOLVED IN THE PROCEEDINGS UNDER THE APPROVED PLAN THE PHOENIX CONVENIENCESTORE OPERATOR WILL BE SOLD FOR 3995 MILLION TO CK ACQUISITIONS CORP A UNIT OF INVESTCORP INTERNATIONAL INC A BAHRAIN HOLDING COMPANY INVESTCORP ALSO WILL PROVIDE CIRCLE K WITH A 50 MILLION LINE OF CREDIT AND WILL ASSUME SOME OF THE COMPANY'S LIABILITIES CIRCLE K'S CHAIRMAN AND CHIEF EXECUTIVE BART A BROWN SAID THAT BASED ON THE JUDGE'S TIMETABLE HE EXPECTS CIRCLE K WILL EMERGE FROM BANKRUPTCY PROCEEDINGS AND COMPLETE ITS SALE BY ABOUT JUNE 30 JUDGE NIELSEN REJECTED A COMPETING PLAN PUT FORWARD BY A GROUP OF SUBORDINATED BONDHOLDERS SAYING IT DID NOT MEET REQUIREMENTS OF THE BANKRUPTCY CODE BONDHOLDERS' ATTORNEY DUNCAN DARROW COULD NOT BE REACHED FOR COMMENT HOWEVER WILLIAM NOVOTNY AN ATTORNEY FOR SENIOR NOTEHOLDERS SAID THE BONDHOLDERS FILED A MOTION FOR A STAY PENDING APPEAL OF JUDGE NIELSEN'S ORDER UNDER THE COURTAPPROVED REORGANIZATION PLAN BONDHOLDERS WILL RECEIVE NOTHING FOR THEIR 515 MILLION IN SUBORDINATED CLAIMS THE PLAN PAYS CIRCLE K'S BANKS AND LENDERS 210 MILLION TO SETTLE THEIR 340 MILLION IN CLAIMS 1325 MILLION TO SENIOR NOTEHOLDERS FOR THEIR 190 MILLION IN CLAIMS AND 57 MILLION TO UNSECURED CREDITORS FOR THEIR CLAIMS WHICH DEPENDING ON FINAL COURT RULINGS RANGE FROM 175 MILLION TO 225 MILLION COMMON SHAREHOLDERS RECEIVE NOTHING INVESTCORP SAID IT WILL LEAVE CIRCLE K'S CURRENT MANAGEMENT IN PLACE CIRCLE K HAS NOT RELEASED RESULTS FOR ITS 1993 FISCAL YEAR ENDED APRIL 30 BUT MR BROWN SAID THAT HIS FEBRUARY ESTIMATE THAT THE COMPANY WOULD POST A NET LOSS OF 15 MILLION TO 20 MILLION IS IN THE BALLPARK HE SAID HE EXPECTS THE COMPANY TO RETURN TO PROFITABILITY IN THE CURRENT 1994 FISCAL YEAR THOUGH IT'LL BE A SMALL PROFIT WHILE HE DID NOT DISCUSS SPECIFIC FIGURES MR BROWN SAID THAT SALES IN CIRCLE K STORES OPEN A YEAR OR MORE GREW ABOUT 12 IN FISCAL 1993 COMPARED WITH THE YEAR EARLIER HE SAID THAT FOR MAY THE FIRST MONTH IN THE CURRENT FISCAL YEAR SAMESTORE SALES POSTED A PERCENTAGE INCREASE IN THE HIGH TEENS MR BROWN ATTRIBUTED IMPROVEMENTS TO AN ONGOING 300 MILLION RENOVATION PROGRAM A NEW MIX OF PRODUCTS AND PROMOTIONS AND AN AGGRESSIVE ADVERTISING CAMPAIGN 9306030156 930603 TECHNOLOGY & MEDICINE NEC PHYSICISTS DEVELOP METHOD TO STORE AND ERASE INFORMATION USING ATOMS BY DAVID P HAMILTON STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO CALL IT THE WORLD'S SMALLEST ETCHASKETCH PHYSICISTS AT NEC CORP SAID THEY HAVE SUCCEEDED IN USING A SOPHISTICATED PROBE TO PAINT AND ERASE TINY LINES ROUGHLY 20 ATOMS THICK A DEVELOPMENT THAT MAY ONE DAY LEAD TO ULTRAHIGHCAPACITY STORAGE DEVICES FOR COMPUTER DATA WHILE SCIENTISTS HAVE LONG BEEN ABLE TO MANIPULATE INDIVIDUAL ATOMS USING A TOOL CALLED A SCANNING TUNNELING MICROSCOPE OR STM THEY HAVEN'T PREVIOUSLY BEEN ABLE TO EASILY ERASE THE PATTERNS THEY CREATED AS A RESULT SINCE THE ABILITY TO RELIABLY WRITE AND ERASE DATA IS KEY TO COMPUTER STORAGE DEVICES THE NEC RESEARCH IS AN IMPORTANT FIRST STEP TOWARD USING STMS TO STORE COMPUTER DATA AT THE ATOMIC LEVEL A STM IS ESSENTIALLY A LONG COMPUTERCONTROLLED NEEDLE THAT TAPERS TO A POINT JUST A FEW ATOMS THICK BY FLOWING AN ELECTRIC CURRENT BETWEEN THE NEEDLE AND A FLAT SURFACE MATERIAL SCIENTISTS CAN USE THE STM TO MAKE AN IMAGE OF THE SURFACE ATOMS AND BY ADJUSTING THE CURRENT TO YANK OUT INDIVIDUAL ATOMS AND SET THEM DOWN SOMEWHERE ELSE THE MAIN PROBLEM FOR RESEARCHERS TO DATE HAS BEEN THE FACT THAT MOVING ATOMS AROUND DOESN'T MAKE FOR RELIABLE STORAGE THE REARRANGED ATOMS SOMETIMES MIGRATE IN UNEXPECTED DIRECTIONS AND ARE DIFFICULT TO PUT BACK INTO PLACE WHEN IT'S TIME TO ERASE THE DATA NEC PHYSICISTS AKINOBU SATO AND YUJI TSUKAMOTO INSTEAD OF USING A STM TO STORE DATA IN REARRANGED SURFACE ATOMS SOUGHT TO FIND A SPECIAL MATERIAL THEY COULD PAINT WITH AN STM CURRENTAND THEN ERASE WHEN THEY REVERSED THAT CURRENT DRS SATO AND TSUKAMOTO HIT PAY DIRT WHEN THEY LAID DOWN A THIN FILM OF A GLASSY SUBSTANCE RELATED TO THE METAL VANADIUM WHEN EXPOSED TO THE CURRENT FROM A STM TIP THE NORMALLY JUMBLED ATOMS OF THIS GLASSY MATERIAL REARRANGE THEMSELVES INTO CRYSTALLINE SHAPES UNDER THE REVERSE CURRENT THE CRYSTAL MELTS BACK INTO ITS JUMBLED FORM ONCE MORE USING THIS TECHNIQUE DRS SATO AND TSUKAMOTO MANAGED TO DRAW SEVERAL LINES JUST 10 NANOMETERS OR ONE HUNDREDMILLIONTH OF A METER WIDE THEY FOUND THEY COULD DRAW AND ERASE THESE LINES A TOTAL OF 10 TIMES AFTER WHICH THE CRYSTALS BECAME FUSED AND FAILED TO MELT THE TEAM REPORTS ITS WORK IN TODAY'S ISSUE OF THE SCIENTIFIC JOURNAL NATURE THE LIMITED NUMBER OF ERASURES IS ONE OF SEVERAL PROBLEMS SCIENTISTS MUST OVERCOME BEFORE SUCH TECHNIQUES CAN ACHIEVE PRACTICAL USE DR SATO SAYS THAT THE TIME IT TAKES TO WRITE OR ERASE A LINE IS STILL FAR TOO SLOW AT ONE MILLISECOND THE NEC PROCESS IS ABOUT A THOUSAND TIMES SLOWER THAN A CONVENTIONAL MAGNETIC DISK DRIVE DR SATO HOWEVER IS CONVINCED RESEARCHERS WILL BE ABLE TO FIND MATERIALS WHOSE CRYSTALS FORM AND DISSOLVE MORE QUICKLY 9306030155 930603 LEISURE & ARTS FILM TEENAGE DESPAIR IN THE GHETTO BY JULIE SALAMON NEW LINE CINEMA THE DISTRIBUTOR OF MENACE II SOCIETY THE HOT NEW FILM ABOUT CONTEMPORARY BLACK GHETTO LIFE IS STRESSING THE STREETWISE BONA FIDES OF THE PICTURE'S DIRECTORS THE 20YEAROLD TWINS ALLEN AND ALBERT HUGHES THE MOVIE'S PROMOTIONAL MATERIAL OBSERVES THAT THOUGH THE HUGHES BROTHERS LIVE IN IDYLLIC POMONA CALIF THEY WERE ACTUALLY BORN IN DETROIT'S INNER CITY FURTHERMORE WE ARE TOLD THEIR MOTHER STEERED HER SONS FROM DRUGS AND GANGS BY BUYING THEM A VIDEO CAMERA WHEN THEY WERE 12 IT'S A GOOD STORY ESPECIALLY WHEN YOU GET TO THE ENDING THE HUGHES BROTHERS TOOK THAT VIDEO CAMERA AND LEARNED TO USE IT VERY WELL AS TEENAGERS THEY LEARNED NOT ONLY HOW TO SHOOT FILM BUT TO EDIT IT AS WELL BY THE TIME THEY DIRECTED MENACE II THEIR FIRST FEATURE FILM THEY'D ALREADY PUT TOGETHER MORE THAN 30 MUSIC VIDEOS THEY'VE PUT THAT TECHNICAL EXPERTISE TO REMARKABLE USE IN THIS DISTURBING FILM THE LATEST AND PERHAPS THE MOST POWERFUL OF THE NEW BLACK GHETTO PICTURES LIKE BOYZ 'N THE HOOD AND STRAIGHT OUT OF BROOKLYN MENACE II EXPLORES THE DESPAIR OF GHETTO LIFE FROM THE POINT OF VIEW OF YOUNG BLACK MEN THE STORY HAS BECOME FAMILIAR EVEN A TEENAGE BOY WITH HOPES OF GETTING OUT WILL FIND HIMSELF BLOCKED BY PEER PRESSURE BY THE OVERWHELMING PRESENCE OF DRUGS AND GUNS THE HUGHES BROTHERS DIFFERENTIATE THEMSELVES WITH AN ASTUTE MIX OF THE VISUAL ACROBATICS THEY LEARNED WHILE MAKING MUSIC VIDEOS AND A YOUARETHERE DOCUMENTARY TECHNIQUE THE PICTURE HAS SOME OF THE FEELING OF COPS OR ONE OF THE OTHER TELEVISION PROGRAMS THAT USE CAMERAS TO TRACK REALLIFE ARRESTS AND ANCILLARY DRAMAS INDEED THE HUGHES BROTHERS DIRECTED AN EPISODE OF FOX TELEVISION'S AMERICA'S MOST WANTED BUT THERE'S AN ARTFULNESS TO THEIR CINEMA VERITE THAT'S ABSENT FROM THE TELEVISION TRUELIFE STORIES THEIR MAIN CHARACTER A YOUNG MAN CALLED CAINE TYRIN TURNER IS EERILY DETACHED FROM HIS OWN LIFE HE SHOULD BE A CANDIDATE FOR ESCAPE FROM THE GHETTO HE'S 18 YEARS OLD AND HAS JUST GRADUATED FROM HIGH SCHOOL MANY PEOPLE HE LIKES AND RESPECTS TELL HIM TO LEAVE HE CLEARLY KNOWS RIGHT FROM WRONG BUT HE IS A VICTIM OF INERTIA WHEN HIS GRANDFATHER ASKS HIM IN DISGUST DO YOU WANT TO LIVE OR DIE CAINE HAS NO ANSWER HE STARES AT HIS GRANDFATHER FOR SEVERAL SECONDS BEFORE HE REPLIES I DON'T KNOW THE FILMMAKERS DON'T BEG SYMPATHY FOR CAINE WHO DEALS DRUGS AND EVENTUALLY COMMITS MURDER HOWEVER BY PRESENTING HIS DISMAL ENVIRONMENT THEY MAKE HIM UNDERSTANDABLE HIS MOTHER WAS A JUNKIE HIS FATHER WAS A DRUG DEALER AND A MURDERER HIS BEST FRIEND IS REALLY SCARY A BABYFACED BOY NAMED ODOG LARENZ TATE A TERRIFYING CREATURE WHO DOESN'T EVEN HAVE CAINE'S LIMITED MORAL COMPASS THOUGH ODOG MUMBLES A CERTAIN AMOUNT OF RACIST RHETORIC HE KILLS INDISCRIMINATELY HE CASUALLY MURDERS A KOREAN GROCER AND AN OLD BLACK JUNKIE FOR ROUGHLY THE SAME REASON THEY BOTH INSULTED HIM WHILE FOLLOWING CAINE'S ATTEMPT TO LEAVE THE GHETTO BEHIND MENACE II MAKES NUMEROUS SOCIOLOGICAL OBSERVATIONS MOST OF THEM SUBTLE WE SEE FOR EXAMPLE THE INFLUENCE OF ALCOHOL THERE'S CHEAP MALT LIQUOR EVERYWHERE AND OF TELEVISION WHEN CAINE SPENDS TIME IN THE HOSPITAL RECOVERING FROM A GUNSHOT WOUND HE PASSES THE DAYS WATCHING GANGSTER MOVIES ODOG ON THE OTHER HAND HAS HIS OWN FAVORITE FILM THE VIDEOTAPE OF HIM KILLING THE KOREAN GROCER WHICH HE RETRIEVED FROM THE STORE'S SECURITY SYSTEM ODOG SHOWS IT TO ALL HIS FRIENDS GLEEFUL AT THE DRAMA IN WHICH HE WAS THE STAR FOR THESE YOUNG MEN THERE SEEMS TO BE NO DIFFERENCE BETWEEN THE VIOLENCE THEY ROUTINELY PARTICIPATE IN AND THE VIOLENCE THEY WATCH IN CONTRAST WHEN CAINE WATCHES A JIMMY STEWART PICTURE ON TELEVISION WITH HIS GRANDPARENTS HIS EYES GLAZE OVER HE SIMPLY DOESN'T RELATE TO THIS SCENE OF A FATHER HUGGING HIS CHILDREN WITH RAW VISCERAL FORCE THE HUGHES BROTHERS MAKE CAINE'S WORLD STRIKINGLY VIVID IT'S A HORRIFYING LIFE THE DIRECTOR RENNY HARLIN MADE HIS MARK IN HOLLYWOOD WITH DIE HARD 2 DIE HARDER A PICTURE MEMORABLE MAINLY FOR ITS GRUESOME VIOLENCE NOW WITH CLIFFHANGER MR HARLIN HAS FOUND A WAY TO UP THE ANTE THIS TIME HE GETS TO EXERCISE HIS CARTOONISH BRUTALITY IN A LOCATION GUARANTEED TO NAUSEATE EVEN MILD ACROPHOBES THE SPLENDIFEROUSLY TERRIFYING ITALIAN ALPS THE ENTIRE ENTERPRISE MUST HAVE BEEN PUT TOGETHER AT A DANGEROUS ALTITUDE JUDGING FROM THE DELIRIOUSLY SILLY DIALOGUE AND BIZARRE ACTING PEOPLE APPEAR TO BE SMILING AT THE MOST INCONGRUOUS MOMENTS JUST BEFORE BEING MURDERED FOR EXAMPLE IT DOESN'T REALLY MATTER THE SCENERY OVERWHELMS ALMOST EVERYTHING EVEN SYLVESTER STALLONE REDUCED TO THE SCALE OF AN OVERMUSCLED ANT SHARON STONE WHO HAD BEEN KICKING AROUND HOLLYWOOD FOR YEARS BECAME A SUPERSTAR WITH BASIC INSTINCT AS FAR AS I CAN TELL THE TOUR DE FORCE THAT MADE HER THE COVER GIRL OF THE YEAR WAS THAT ASTOUNDING BIT OF METHOD ACTING HER WILLINGNESS TO ALLOW THE CAMERA TO PEEK UP HER SKIRT AND FIND NO PANTIES HAVING DECLARED MS STONE A SUPERSTAR THE MEDIA MAY NOW FEEL COMPELLED TO DESTROY HER THOUGH SHE REALLY ISN'T WHAT'S WRONG WITH SLIVER SHE DOES HER BEST SHE ALLOWS A BREAST TO PEEK OUT SHE LETS US WATCH HER MAKE LOVE TO HERSELF IN THE BATH WHAT'S WRONG WITH SLIVER FROM THE PERSPECTIVE OF ITS MARKETERS MAY BE THAT NONE OF MS STONE'S ACTIVITIES ARE EVEN VAGUELY INTERESTING OR EVEN EROTIC BUT THIS ISN'T SURPRISING FROM A MOVIE ABOUT VOYEURISM THAT NEVER MAKES A CONNECTION BETWEEN THE PEEPER AND THE PEOPLE HE'S PEEPING AT INDEED THE PICTURE IS SO MUDDLED IT'S IMPOSSIBLE TO KNOW WHERE TO LAY THE BLAME HOWEVER IT SEEMS EVIDENT THAT THE DIRECTOR PHILLIP NOYCE PATRIOT GAMES ISN'T A VOYEUR AT HEART GOOD FOR HIS LIFE PERHAPS BAD FOR THIS PARTICULAR MOVIE AND ONE COULD GUESS THAT SCREENWRITER JOE ESZTERHAS BASIC INSTINCT HAS A MEAN STREAK ESPECIALLY WHEN IT COMES TO WOMEN AS FOR MS STONE MAYBE SHE CAN REPRISE HER ROLE IN TOTAL RECALL WHERE SHE WAS THOROUGHLY CONVINCING IN THE PART OF A COOLLY MURDEROUS ANDROID WHO LOOKED LIKE A BARBIE DOLL VIDEO TIP SLIVER HAS ONE INTERESTING SCENE WHEN THE PICTURE'S VOYEUR SIMULTANEOUSLY PEEPS INTO EVERY APARTMENT OF A GIANT BUILDING USING A WALL OF TELEVISION SETS ATTACHED TO VIDEO MONITORS THIS IDEA OF THE TECHNOLOGICALLY ADVANCED PEEPER HAD MANY POSSIBILITIES WHICH IRA LEVIN PUT TO BETTER USE IN THE NOVEL ON WHICH THE FILM IS BASED THE FILMMAKERS SHOULD HAVE WATCHED REAR WINDOW A FEW MORE TIMES AND LEARNED A BASIC LESSON ABOUT CONNECTING A PICTURE'S THEMES TO ITS STORY IN OTHER WORDS IT'S A GOOD IDEA FOR WHAT THE PEEPER SEES TO HAVE SOMETHING TO DO WITH THE PLOT 9306030154 930603 COURT UPHOLDS RULING ON PANHANDLE CLEANUP THAT FAVORS INSURERS HOUSTON PANHANDLE EASTERN CORP SAID A FEDERAL APPEALS COURT IN PHILADELPHIA UPHELD A LOWER COURT'S RULING THAT THE COMPANY'S INSURERS DON'T HAVE TO PAY FOR PANHANDLE'S ENVIRONMENTAL CLEANUP COSTS IN PENNSYLVANIA AND NEW JERSEY AS A RESULT PANHANDLE A NATURAL GAS PIPELINE COMPANY WILL PAY ABOUT 178 MILLION TO COMPLETE THE REMEDIATION OF POLYCHLORINATED BIPHENYLS OR PCBS AND FOR OTHER STEPS THE COMPANY SAID IT HAD ALREADY PROVIDED FOR ITS SHARE OF THE ESTIMATED COST OF THE PROCESS ON ITS BALANCE SHEET THE RULING AND THE CONTINUING CLEANUP WILL HAVE NO ADVERSE EFFECT ON THE COMPANY'S CONSOLIDATED FINANCIAL RESULTS SAID A PANHANDLE SPOKESMAN THE CLEANUP ESTIMATED TO COST A TOTAL OF 750 MILLION INVOLVES INSTALLATION OF CERTAIN CONTROL EQUIPMENT GROUNDWATER MONITORING WELLS AND ONSITE CLEANUP WORK AT CERTAIN COMPRESSOR STATION SITES ABOUT 575 OF THE COSTS ARE BEING PAID BY PANHANDLE'S CUSTOMERS THROUGH HIGHER RATES AS AGREED AND APPROVED BY THE FEDERAL ENERGY REGULATORY COMMISSION THE COMPANY TRIED TO GET ITS INSURERS TO PAY THE REMAINING COSTS BUT THAT WAS DENIED BY A US DISTRICT COURT IN PENNSYLVANIA IN JULY 1992 AT THE END OF 1992 THERE WERE ABOUT 428 MILLION IN COSTS REMAINING THE SPOKESMAN SAID CUSTOMERS WILL PAY ABOUT 250 MILLION AND PANHANDLE 178 MILLION SEPARATELY PANHANDLE SAID IT CLOSED THE SALE OF 10 MILLION SHARES OF COMMON STOCK PRICED AT 2125 A SHARE FOR NET PROCEEDS OF APPROXIMATELY 205 MILLION THE SALE INCLUDED THE UNDERWRITERS' OVERALLOTMENT OPTION OF ONE MILLION SHARES MERRILL LYNCH & CO WAS THE LEAD UNDERWRITER FOR THE OFFERING THE COMPANY SAID NET PROCEEDS WILL BE USED TO FINANCE THE REDEMPTION OF OUTSTANDING 12 DEBENTURES OF ITS TEXAS EASTERN TRANSMISSION CORP UNIT DUE 2010 AND THE OUTSTANDING 10375 DEBENTURES OF ITS PANHANDLE EASTERN PIPE LINE CO DUE 2011 PANHANDLE EASTERN HAS 119 MILLION COMMON SHARES OUTSTANDING 9306030153 930603 INTERNATIONAL CAMBODIA ELECTION THREATENS AN END TO HUN SEN'S REIGN BY RAPHAEL PURA STAFF REPORTER OF THE WALL STREET JOURNAL PHNOM PENH CAMBODIA PRIME MINISTER HUN SEN'S AUTHORITARIAN REGIME IS IN DEEP TROUBLE AFTER AN ELECTORAL SETBACK THAT THREATENS ITS 14YEAR GRIP ON POWER WITH ALMOST 90 OF THE VOTE COUNTED IN CAMBODIA'S UNITED NATIONSORGANIZED ELECTION OPPOSITION PARTIES APPEAR CERTAIN TO WIN A MAJORITY IN A NEW CONSTITUENT ASSEMBLY LEADING THE OPPOSITION WAVE IS PRINCE NORODOM RANARIDDH'S FUNCINPEC WHICH WITH 457 OF THE VOTE PROBABLY WILL BE THE CORE OF CAMBODIA'S GOVERNMENT THAT REALIZATION HAS SHAKEN HUN SEN'S FORMERLY COMMUNIST GOVERNMENT KNOWN AS SOC AND ITS POLITICAL ARM THE CAMBODIAN PEOPLE'S PARTY THE CPP HAS WON ABOUT 361 OF THE VOTE AFTER HUN SEN AND OTHER PARTY LEADERS BRASHLY PREDICTED THAT 60 TO 70 OF CAMBODIAN VOTERS WOULD BACK THE GOVERNMENT PARTY THE INCUMBENTS NOW FACE A DILEMMA REJECTING THE ELECTION MEANS INTERNATIONAL CONDEMNATION THE END OF FOREIGN ECONOMIC AID AND THE PROSPECT OF RENEWED CONFLICT WITH THE KHMER ROUGE THE COMMUNIST GUERRILLAS WHO REFUSED TO PARTICIPATE IN THE ELECTION BUT ACCEPTING THE RESULTS AND JOINING A FUNCINPECLED COALITION COULD MEAN THE END OF POLITICAL AND ECONOMIC FIEFS FOR KEY SOC AND CPP OFFICIALS THE UNITED NATIONS TRANSITIONAL AUTHORITY IN CAMBODIA OR UNTAC AND DIPLOMATIC MISSIONS WORKED WEDNESDAY TO DISSUADE SOC AND THE CPP FROM REJECTING THE POLL CAMBODIA'S INTERIM HEAD OF STATE PRINCE NORODOM SIHANOUK ALSO INTERVENED TO TRY TO OPEN CONTACTS BETWEEN FUNCINPEC AND THE CPP MEANWHILE FUNCINPEC URGED THE UN TO STAND FIRM AGAINST CPP CHALLENGES THE CPP HAS DEMANDED FRESH ELECTIONS IN FIVE PROVINCES WHERE IT ALLEGES IRREGULARITIES OCCURRED UNTAC ELECTORAL CHIEF REGINALD AUSTIN WEDNESDAY ACKNOWLEDGED MINOR ERRORS BUT SAID UNTAC FOUND NO EVIDENCE TO SUGGEST THAT THE SCOPE OF THE PROBLEM WAS SUFFICIENT TO HAVE A REAL IMPACT ON THE ELECTION RESULTS OR TO JUSTIFY REJECTION OF THE RESULTS 9306030152 930603 INTERNATIONAL JAPAN'S BAN ON AMERICAN APPLES DRAWS GROWING COMPLAINTS FROM US OFFICIALS BY YUMIKO ONO STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO ADD ANOTHER POLITICAL HOT POTATO TO THE LONG MENU OF USJAPAN TRADE DISPUTES APPLES US SEN SLADE GORTON R WASH PLANS A NEWS CONFERENCE HERE THURSDAY TO DEMAND THAT JAPAN OPEN ITS MARKET TO AMERICAN APPLES LAST WEEK CHARLENE BARSHEFSKY DEPUTY US TRADE REPRESENTATIVE SAID IN A SENATE CONFIRMATION HEARING THAT IF JAPAN REFUSES TO ALLOW US APPLE IMPORTS AFTER NEGOTIATIONS IN WASHINGTON NEXT WEEK THE US MAY IMPOSE TOUGHER MEASURES INCLUDING TRADE SANCTIONS JAPAN LIBERALIZED ITS APPLE INDUSTRY 22 YEARS AGO BUT IT STILL BANS ENTRY OF AMERICAN APPLES SAYING THEY DON'T MEET JAPAN'S PEST AND DISEASE STANDARDS JUST THIS WEEK NEW ZEALAND MANAGED TO GET THE JAPANESE BAN ON ITS APPLES LIFTED AFTER MORE THAN TWO DECADES OF EFFORT JAPAN ALREADY BUYS A SMALL AMOUNT OF SOUTH KOREAN APPLES BUT WHY FIGHT OVER APPLES AFTER ALL THE CLINTON ADMINISTRATION HAS VOWED TO COME OUT SOON WITH A COMPREHENSIVE TRADE STRATEGY FOR JAPAN FOCUSING AMERICAN FIREPOWER ON STRATEGIC HIGHTECHNOLOGY INDUSTRIES SUCH AS SEMICONDUCTORS AND SUPERCOMPUTERS THE POINT IS TO AVOID GETTING BOGGED DOWN IN SMALLSCALE FIGHTS THAT OFTEN SEEMED FRIVOLOUS IN THE PAST SUCH AS TIFFS OVER ALUMINUM BASEBALL BATS IN THE SCHEME OF THINGS THE APPLE TRADE SEEMS TO BE PEANUTS WASHINGTON STATE WHICH ACCOUNTS FOR MORE THAN HALF OF THE US APPLE HARVEST SAYS IT AIMS TO SELL BETWEEN 30 MILLION AND 50 MILLION OF THE FRUIT TO JAPAN A YEAR WHICH WOULDN'T EVEN DENT AMERICA'S LOOMING 50 BILLION TRADE DEFICIT WITH JAPAN BUT US OFFICIALS ARE LOOKING FOR A SYMBOLIC CASE TO PORTRAY THE JAPANESE AS AN UNFAIR TRADING PARTNER DESPITE REPEATED US EFFORTS JAPAN HAS REJECTED IMPORTS OF AMERICAN APPLES FOR 10 YEARS THIS IS PROJECTING AN IMAGE TO THE WORLD OF A JAPAN THAT DOESN'T PLAY BY THE RULES SAYS A US EMBASSY OFFICIAL IN TOKYO IF JAPAN CONTINUES TO STALL MARKET ENTRY THAT WILL AFFECT THE TONE OF FUTURE TALK OF FREE TRADE ADDS JIM THOMAS A SPOKESMAN FOR THE WASHINGTON APPLE COMMISSION AN INDUSTRY GROUP THE SQUABBLE INTENSIFIED LAST MONTH WHEN SPEAKER OF THE HOUSE TOM FOLEY AGRICULTURE SECRETARY MIKE ESPY AND US TRADE REPRESENTATIVE MICKEY KANTOR SENT LETTERS TO MASAMI TANABU JAPAN'S AGRICULTURE MINISTER URGING TOKYO TO DROP THE IMPORT BAN SEN GORTON WHO WILL TALK WITH JAPANESE GOVERNMENT OFFICIALS THURSDAY IS LIKELY TO SHAKE THE TREE EVEN HARDER BEFORE THE TWO COUNTRIES OFFICIALLY START NEGOTIATING NEXT MONDAY TOKYO INSISTS IT ISN'T KEEPING OUT AMERICAN APPLES TO PROTECT ITS 94000 APPLE FARMERS OFFICIALS SAY US APPLES HARBOR CODLING MOTHS AND SUCH PLANT DISEASES AS FIRE BLIGHT WHICH DON'T EXIST IN JAPAN THEIR LEVEL OF TECHNOLOGY CONCERNING APPLE DISEASES HASN'T BEEN PERFECTED YET SAYS A JAPANESE AGRICULTURE MINISTRY OFFICIAL IN CHARGE OF FRESH FOOD IMPORTS WE CAN'T SHAKE HANDS IF THEY DON'T HAVE THIS TECHNOLOGY JAPANESE OFFICIALS REPEATEDLY STRESS THEY ARE ALREADY THE WORLD'S LARGEST IMPORTERS OF US FARM PRODUCTS BUT US OFFICIALS SAY JAPAN IS JUST LOOKING FOR EXCUSES TO CONTINUE THE BAN THEY KEEP REQUIRING DATA ON BRAND NEW STUFF ON MORE AND MORE MINUTE DETAIL SAYS THE US EMBASSY OFFICIAL THE OFFICIAL SAYS ONE LASTMINUTE JAPANESE REQUEST INCLUDED VIEWING THE US APPLE TREES WHILE THEY WERE IN BLOSSOM AT A TIME WHEN THE FLOWERS HAD ALREADY FALLEN UNLESS THE US SUPPLIES THE DATA AND MEETS CERTAIN CONDITIONS JAPAN REFUSES TO SEND INSPECTORS TO CHECK WHETHER AMERICAN APPLES HAVE MET THE STANDARDS AN AGRICULTURE MINISTRY OFFICIAL SAID JAPAN HASN'T SENT INSPECTORS BECAUSE THE US HAS YET TO PROVIDE DATA PROVING THE TIME IS READY TO SEND THE INSPECTION PEOPLE JAPANESE FARMERS CONCEDE TOKYO'S EMPHASIS ON STANDARDS IS A COVER FOR THE POLITICAL REASONS FOR KEEPING THE BAN AMERICAN APPLES ARE A THREAT BECAUSE THEY COST ONLY ABOUT HALF AS MUCH AS JAPANESE APPLES WHICH SELL IN TOKYO STORES FOR AS MUCH AS 300 YEN 280 EACH IF WE OPPOSE ON THE GROUNDS THAT IMPORTS THREATEN JAPANESE FARMERS THAT REASON WON'T FLY ANYMORE SAYS TOSHIHIRO MIKAMI AN ADVISER TO A GROWERS ASSOCIATION IN AOMORI JAPAN'S MAIN APPLEPRODUCING REGION SO WE ARE FOCUSING ON THE PESTS WE'RE VERY WORRIED THAT THESE NEW INSECTS WILL ENTER OUR COUNTRY THAT KIND OF REASONING IS STARTING TO SOUND FISHY EVEN TO OTHER JAPANESE THE AGRICULTURAL MINISTRY SHOULD STATE CLEARLY WHAT IT CAN DO AND WHAT IT CAN'T SAID AN EDITORIAL IN THE SANKEI SHIMBUN A MAJOR NATIONAL DAILY IT SHOULD ALSO EXPLAIN WHY THE IMPORTS AREN'T ALLOWED SO THAT A THIRD PARTY CAN ALSO UNDERSTAND 9306030151 930603 ECONOMY FLORIDA CHALLENGES TRAVELERS' PLAN TO CUT AGENTS AND HURRICANE EXPOSURE BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL TRAVELERS CORP PLANS TO REDUCE ITS EXPOSURE TO SOUTH FLORIDA HURRICANES DESPITE A MORATORIUM AGAINST CANCELING HOMEOWNERS' POLICIES IN THE STATE A MOVE FLORIDA OFFICIALS SAY IS ILLEGAL TRAVELERS BASED IN HARTFORD CONN SAYS ITS ACTIONS COMPLY WITH THE STATE MORATORIUM BECAUSE THE COMPANY WON'T BE CANCELING POLICIES INSTEAD THE COMPANY SAYS IT IS TERMINATING RELATIONS WITH SOME OF ITS INDEPENDENT AGENTS IN THE STATE SPECIFICALLY TRAVELERS IS TERMINATING TIES WITH 41 INDEPENDENT AGENTS IN FLORIDA OF WHICH 21 ARE IN SOUTH FLORIDA AFTER AN AGENT IS LET GO THE AGENT'S POLICYHOLDERS CAN RENEW ONLY ONCE WITH TRAVELERS THE AGENTS CAN THEN TRY TO PLACE POLICYHOLDERS WITH OTHER INSURERS OR WITH A STATE POOL THAT COVERS THOSE HOLDERS WHO CAN'T OBTAIN COVERAGE ELSEWHERE BUT FLORIDA OFFICIALS CONTEND THAT TERMINATING TIES WITH AGENTS IS TANTAMOUNT TO TERMINATING POLICYHOLDERS BECAUSE POLICYHOLDERS WILL HAVE TO FIND ANOTHER INSURANCE COMPANY WE'VE PUT TRAVELERS ON NOTICE THAT WE THINK THEY'RE IN VIOLATION SAID A SPOKESMAN FOR THE STATE INSURANCE DEPARTMENT A HEARING WILL BE HELD TO DISCUSS THE ISSUE NO DATE HAS YET BEEN SCHEDULED TRAVELERS HAS 37000 POLICYHOLDERS IN THE MIAMI AREA BY LATE 1995 THE COMPANY PLANS TO REDUCE THAT NUMBER BY TWOTHIRDS THE COMPANY SUFFERED A NET LOSS OF 299 MILLION ON HURRICANE ANDREW FLORIDA INSURANCE COMMISSIONER TOM GALLAGHER IMPOSED A 90DAY MORATORIUM ON CANCELLATIONS FOLLOWING THE DECISION BY ALLSTATE INSURANCE CO TO LET 300000 HOMEOWNERS' POLICIES LAPSE IN THE STATE WE DON'T FEEL THE MORATORIUM IS DIRECTED AT US SAID A TRAVELERS SPOKESMAN WE HAVEN'T NOTIFIED ANY CONSUMERS THAT THEY ARE NOT BEING RENEWED WE THINK OUR ACTIONS ARE LEGAL THE FLORIDA LEGISLATURE RECENTLY PASSED A BILL THAT WOULD EXTEND THE MORATORIUM THROUGH NOVEMBER 30 TRADITIONALLY THE LAST DAY OF THE HURRICANE SEASON FLORIDA GOVERNOR LAWTON CHILES IS EXPECTED TO SIGN THE BILL SHORTLY THE LAW WOULD FINE A COMPANY 20000 FOR EACH POLICY ILLEGALLY CANCELLED INSURANCE COMPANIES HAVE LOST NEARLY 17 BILLION ON HURRICANE ANDREW MAKING IT BY FAR THE COSTLIEST STORM IN US HISTORY A NUMBER OF INSURANCE COMPANIES HAVE SINCE SOUGHT TO REDUCE THEIR EXPOSURE TO HURRICANES IN TRAVELERS' CASE IT WILL ALSO STOP WRITING NEW HOMEOWNERS' POLICIES IN COASTAL AREAS OF NEW YORK AND CONNECTICUT BECAUSE IT WANTS TO REDUCE ITS MAXIMUM LOSS ON ANY STORM TO 200 MILLION 9306030150 930603 INTERNATIONAL VIRGIN BETS THAT GAMBLING WILL FLY WITH TRAVELERS AS A PIONEER IN INFLIGHT SERVICE VIRGIN ATLANTIC AIRWAYS OFFERS MASSAGES MANICURES AND WINETASTINGS NOW THE BRITISH AIRLINE IS PLANNING ANOTHER AMENITY VIDEO GAMBLING ELECTRONIC POKER MAY STRIKE SOME TRAVELERS AS LESS AN AMENITY THAN A MINEFIELD AS PASSENGERS ALREADY PAY OUT PLENTY FOR TICKETS EVEN SO VIRGIN BELIEVES ITS FLIERS WILL BE EAGER TO ROLL THE DICE THE CARRIER SAYS IT'S EQUIPPING EACH SEAT IN ITS ENTIRE FLEET WITH VIDEO GAMES IN HOPES OF OFFERING THE SERVICE BY NEXT SPRING PASSENGERS WOULD PLAY BY INSERTING THEIR CREDIT CARDS WINNINGS OR LOSSES WOULD BE CREDITED TO THEIR ACCOUNTS THE AIRLINE OWNED BY VIRGIN GROUP LTD SAID THE PROJECT IS TOO YOUNG TO DISCLOSE FURTHER DETAILS VIRGIN WOULD BE THE FIRST AIRLINE TO OFFER INFLIGHT GAMBLING EVEN THOUGH SEVERAL SOFTWARE COMPANIES ARE MARKETING GAMBLING TECHNOLOGY TO AIRLINES US FLIERS SHOULD NOT EXPECT TO SEE THEIR FLIGHTS TURNED INTO FLYING CASINOS ANYTIME SOON US LAW PROHIBITS GAMBLING ON DOMESTIC FLIGHTS VIRGIN FLIES ONLY INTERNATIONAL FLIGHTS A SPOKESWOMAN FOR THE AIRLINE SAID SHE BELIEVES GAMBLING ON THE AIRLINE WOULD FALL UNDER THE SAME PROTECTION AS GAMBLING ON CRUISE LINES 9306030149 930603 BUSINESS BRIEF FRUIT OF THE LOOM'S STOCK DECLINES 12 ON NEW DISCOUNTING CHICAGO FRUIT OF THE LOOM INC'S SHARES FELL 12 ON AN ANALYST'S DISCLOSURE THAT A FRESH ROUND OF DISCOUNTING TO GAIN MARKET SHARE WILL LIKELY PINCH FULLYEAR PROFITS DEBORAH T BRONSTON AN ANALYST WITH PRUDENTIAL SECURITIES INC LOWERED HER 1993 PERSHARE ESTIMATE YESTERDAY TO 285 FROM 295 AND MARKED DOWN HER 1994 ESTIMATE TO 335 FROM 345 FOR 1992 THE APPAREL COMPANY POSTED NET INCOME OF 1786 MILLION OR 235 A SHARE ON SALES OF 186 BILLION THE NEWS SURPRISED WALL STREET WHICH WASN'T IMMEDIATELY EXPECTING FRUIT TO OFFER MORE PRICE INCENTIVES THE COMPANY'S SHARES TUMBLED 425 YESTERDAY TO CLOSE AT 31625 IN AMERICAN STOCK EXCHANGE COMPOSITE TRADING FRUIT'S ACTIVEWEAR WHICH INCLUDES TSHIRTS SWEATSHIRTS AND SHORTS HOTLY COMPETES WITH SIMILAR PRODUCTS MADE BY SARA LEE CORP'S HANES AND RUSSELL CORP'S JERZEES AMONG OTHERS JUST TO KEEP MARKET SHARE THE COMPANIES ARE CONSTANTLY WAGING INTENSE PRICE WARS FRUIT TOUCHED OFF A DISCOUNTING SPREE IN DECEMBER THAT ENTICED DISTRIBUTORS TO STOCK UP ON APPAREL EARLIER THAN USUAL DISTRIBUTORS' INVENTORIES CURRENTLY ARE UP ABOUT 15 OVER YEAREARLIER LEVELS WHILE SALES HAVE CLIMBED JUST 7 TO 9 MS BRONSTON SAID TO PERSUADE RELUCTANT DISTRIBUTORS TO COME BACK FOR MORE FRUIT THIS WEEK BEGAN OFFERING THEM A NEW ROUND OF INCENTIVES THEY INCLUDE A 1 DISCOUNT FOR EVERY DOZEN FLEECEWEAR PRODUCTS THAT ARE SHIPPED IN JUNE AND VOLUME DISCOUNTS RANGING FROM 05 TO 2 FOR FRUIT'S BIGGEST CUSTOMERS ON ALL ACTIVEWEAR PRODUCTS MS BRONSTON SAID SHE EXPECTS FRUIT'S COMPETITORS TO COUNTER WITH THEIR OWN AGGRESSIVE DISCOUNTS MARK STEINKRAUSS FRUIT'S VICE PRESIDENT OF INVESTOR RELATIONS ACKNOWLEDGED THAT THE INCENTIVES WILL PRESSURE GROSS MARGINS BUT SAID THE IMPACT WON'T BE DRAMATIC HE DEFENDED FRUIT'S LATEST DISCOUNTING AS A WAY TO GENERATE SALES IN THE CURRENT LACKLUSTER RETAIL ENVIRONMENT AT A TIME WHEN CUSTOMERS ARE PINCHING PENNIES WE HAVE TO GO OUT THERE AND MAKE OUR OWN BUSINESS HE SAID 9306030148 930603 PACO PHARMACEUTICAL'S CUTBACK LAKEWOOD NJ PACO PHARMACEUTICAL SERVICES INC SAID IT WILL PHASE OUT ITS PACKAGING AND WAREHOUSE FACILITIES IN WAUKEGAN ILL AS PART OF A COSTREDUCTION PROGRAM STARTED IN APRIL 1992 PACO A PROVIDER OF PACKAGING MANUFACTURING DESIGN AND ENGINEERING SERVICES FOR THE DRUG AND HEALTHCARE INDUSTRIES SAID MOST PACKAGING CONTRACTS IN THE WAUKEGAN AREA WOULD BE TRANSFERRED TO THE COMPANY'S LARGER LAKEWOOD FACILITIES 9306030147 930603 MARKETING & MEDIA CAROLCO FIRMS DRAFT AGREEMENT ON RESTRUCTURING BY DAVID J JEFFERSON STAFF REPORTER OF THE WALL STREET JOURNAL LOS ANGELES CAROLCO PICTURES INC SAID IT ENTERED INTO A DEFINITIVE AGREEMENT WITH FOUR COMPANIES FOR THE PREVIOUSLY ANNOUNCED FINANCIAL RESTRUCTURING OF THE AILING INDEPENDENT PRODUCTION COMPANY BUT CAROLCO ALSO SAID THAT IT HAS FAILED TO MAKE A 3 MILLION PAYMENT DUE YESTERDAY UNDER A 15 MILLION PROMISSORY NOTE HELD BY THE MOTION PICTURE INDUSTRY TALENT GUILDS IF THE PAYMENT ISN'T MADE WITHIN 30 DAYS THE GUILDS MAY FORECLOSE ON THEIR SECURITY INTERESTS WHICH INCLUDE SUBSTANTIALLY ALL THE ASSETS OF THE COMPANY THE GUILDS' INTEREST IS SUBORDINATE TO THAT OF CAROLCO'S BANKS HOWEVER CAROLCO THE PRODUCER BEHIND SUCH FILMS AS CHAPLIN AND BASIC INSTINCT ISSUED THE PROMISSORY NOTE TO THE GUILDS LAST AUGUST CAROLCO AS EXPECTED ALSO FAILED TO MAKE OTHER PAYMENTS DUE YESTERDAY THE PRINCIPAL AND ACCRUED INTEREST ON ITS 338 MILLION OUTSTANDING OF 14 SENIOR NOTES AND THE 1 MILLION INTEREST PAYMENT ON ITS 161 MILLION OUTSTANDING OF 13 NOTES FOR WHICH IT HAS A 30DAY GRACE PERIOD CAROLCO HAS SAID IT PLANS TO PAY THE OBLIGATIONS PURSUANT TO THE COMPLETION OF ITS RESTRUCTURING WHICH CALLS FOR ITS THREE STRATEGIC INVESTORS AFFILIATES OR UNITS OF ITALY'S RIZZOLI CORRIERE DELLA SERA GROUP FRANCE'S CANAL PLUS SA AND JAPAN'S PIONEER ELECTRONIC CORP TO ACQUIRE A 63 VOTING STAKE IN THE COMPANY AND AN AFFILIATE OF METROGOLDWYNMAYER INC TO ACQUIRE ABOUT AN 18 VOTING STAKE UNDER THE DEFINITIVE AGREEMENTS PIONEER LDCA INC LE STUDIO CANAL PLUS AND MGM HOLDINGS CORP WILL BUY 825 MILLION OF A NEW CLASS OF CONVERTIBLE PREFERRED STOCK MGM WILL ALSO BUY 30 MILLION OF 5 PAYMENTINKIND CONVERTIBLE SUBORDINATED NOTES TO SATISFY A 322 MILLION LOAN EXTENDED TO CAROLCO BY THE STRATEGIC INVESTORS IN MARCH 1992 THE INVESTORS WILL RECEIVE ALL OF CAROLCO'S 517 STAKE IN THE COMMON STOCK OF LIVE ENTERTAINMENT INC A LOS ANGELES HOME VIDEO CONCERN PLUS ADDITIONAL CAROLCO COMMON STOCK ALSO LE STUDIO CANAL PIONEER AND RIZZOLI WILL EXCHANGE A PORTION OF THE EXISTING CAROLCO PREFERRED STOCK AND 10 DEBENTURES THEY HOLD FOR 72 MILLION NEW COMMON SHARES CAROLCO'S CURRENT PUBLIC STOCKHOLDERS WILL HAVE THEIR VOTING POWER REDUCED TO 15 FROM THE CURRENT 467 THE RESTRUCTURING IS SUBJECT TO SHAREHOLDER APPROVAL CAROLCO REITERATED THAT IF THE PLAN ISN'T APPROVED AND IT CAN'T FIND OTHER FINANCING THE COMPANY WON'T BE ABLE TO CONTINUE AS A GOING CONCERN 9306030146 930603 SO IT'S POSSIBLE FOR FEDERAL RULES TO PROMOTE INDUSTRIOUS BEHAVIOR BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL EACH TIME IT RAINS HOUSTON LENNARD LOADS HIS 22CALIBER RIFLE AND HEADS FOR THE SWAMP UNFORTUNATELY THE SWAMP USED TO BE THE ATTORNEY'S MANICURED BACKYARD BEAVERS FROM THE CHATTAHOOCHEE RIVER HAVE WREAKED HAVOC IN GEORGIA'S COBB COUNTY NEAR ATLANTA THEIR DAMS HAVE CLOGGED DRAINAGE PIPES FLOODING STREETS AND BACKYARDS SUCH AS MR LENNARD'S LOT ON COLUMNS DRIVE IN AN EXPENSIVE SUBDIVISION AND THE BEAVERS HAVE THE UPPER HAND FEDERAL LAW PROTECTS THE CRITTERS WHILE THEY ARE ON NATIONAL PARK LANDS SUCH AS THE ADJOINING CHATTAHOOCHEE RIVER NATIONAL RECREATION AREA BUT MR LENNARD IS READY FOR THOSE THAT SWIM ONTO HIS ONEACRE LOT PARK RANGERS SAY HE IS ALLOWED TO BLAST THE BEAVERS IF HE CATCHES THEM HARMING HIS PROPERTY HE'S GOT PLENTY OF EVIDENCE SO FAR HE SAYS THE BEAVERS HAVE EATEN 13 TREES IF I PLANT A 19 KMART TREE AND A 600 JAPANESE MAPLE HE'LL CHEW DOWN THE JAPANESE MAPLE MR LENNARD SAYS IT'S A GOURMET BEAVER HE BOUGHT A GUN SOMETHING HE ISN'T PROUD OF AFTER A BEAVER CHASED HIS SON SOME NEIGHBORS HAVE BECOME WEEKEND WARRIORS ONE MAN OFTEN SITS IN HIS SHRUBS WITH A GUN BEFORE DAWN WAITING FOR THE BEAVERS TO SURFACE DURING ONE EARLYMORNING PATROL THE MAN STARTLED A JOGGER MAKING A PIT STOP IN HIS YARD MOST DAYS MR LENNARD TRIES NONVIOLENCE HE BOUGHT RUBBER WADING BOOTS SO HE COULD GO INTO THE WAISTDEEP WATER AND UNCLOG THE DRAINAGE PIPE THE BEAVERS JUST BUILT THEIR DAMS DEEPER INSIDE THE PIPE IT'S WORSE WHEN HEAVY RAINS TURN THE YARD INTO ONE BIG BEAVER SWIMMING POOL AFTER A STORM AT LEAST 10 ACRES OF THE PARK LAND ALONG WITH HIS BACKYARD ARE COVERED WITH WATER EVERY TIME IT RAINS IT RAINS BEAVERS FROM HEAVEN MR LENNARD SAYS HE FIGURES THERE ARE NOW SIX TO NINE BEAVERS SWIMMING AROUND HIS YARD THAT MAY BE AN UNDERSTATEMENT BEAVERS MULTIPLY QUITE QUICKLY SAYS STUART DELUGACH A PARK RANGER AT THE CHATTAHOOCHEE RIVER STATION MR DELUGACH TRIES TO MEDIATE BETWEEN BEAVERS AND HOMEOWNERS HE OFTEN TRAPS THE ANIMALS AND SHIPS THEM TO REMOTE AREAS OR HE RIGS UP BEAVER PIPES WITH WIRE MESH TO DISCOURAGE DAM BUILDING AROUND DRAINAGE PIPES BUT SOME CRITTERS INCLUDING THOSE IN MR LENNARD'S YARD RESIST MR LENNARD HOPES A STONE WALL HE'S BUILDING WILL KEEP THE BEAVERS AND WATER AT BAY AND HE'S SHOWING SOME RESTRAINT I HAVEN'T PUT ANY GUN TURRETS ON IT YET 9306030145 930603 PERSONAL TECHNOLOGY BY WALTER S MOSSBERG LET US CONSIDER THE HUMBLE MODEM THE ADDON DEVICE THAT ACTS AS A TELEPHONE FOR PERSONAL COMPUTERS ALLOWING THEM TO CONNECT TO VARIOUS DIALUP DATABASES SEND AND RECEIVE ELECTRONIC MAIL AND DO MUCH MORE OR RATHER LET US RECONSIDER THE MODEM FOR IN THE PAST FEW MONTHS THE PRICE/PERFORMANCE RATIOS OF MODEMS HAVE IMPROVED SUBSTANTIALLY SOME WELLKNOWN MODEM MAKERS NOTABLY US ROBOTICS SKOKIE ILL HAVE CUT THE PRICES OF THEIR HIGHESTSPEED CONSUMER MODELS WHICH CAN HANDLE AS MUCH AS 14400 BITS PER SECOND TO BETWEEN 200 AND 250 AT DISCOUNT STORES BITS ARE THE SMALLEST UNIT OF COMPUTER DATA MODEM PERFORMANCE IS MEASURED IN BITS PER SECOND OR BPS MODELS CAPABLE OF 9600 BPS CAN BE HAD FOR 100 TO 150 AND THESE ARE USUALLY FULLFEATURED PRODUCTS COMPLETE WITH DECENT SOFTWARE AND THE ABILITY TO SEND AND RECEIVE FAXES IN ADDITION TO DATA IN EARLY 1992 WHEN THIS COLUMN LAST FOCUSED ON THE SUBJECT A BRANDNAME HIGHSPEED MODEM TYPICALLY COST 500 TO 1000 AND A BRANDNAME MODEL THAT COULD MANAGE ONLY THE NOWBASIC SPEED OF 2400 BPS COST NEARLY 200 AT THE TIME I RECOMMENDED THAT MOST USERS STICK WITH 2400BPS MODEMS BECAUSE OF PRICE AND BECAUSE FEW MAINSTREAM CORPORATE OR PUBLIC DATA SERVICES OFFERED HIGHSPEED SERVICE MOREOVER MODEMS THAT RAN AT 9600 OR 14400 BPS WERE TRICKY TO CONFIGURE AND USE BUT THAT IS CHANGING FAST AND IT'S TIME TO CONSIDER MOVING UP FOR THE PAST FEW MONTHS I'VE BEEN TRYING OUT THE SPORTSTER 14400BPS FAX MODEM FROM US ROBOTICS WHICH ALAS DOESN'T MAKE ROBOTS JUST MODEMS I EVEN USED IT TO SEND THIS COLUMN TO MY EDITOR THE SPORTSTER COMES IN MODELS FOR BOTH IBMCOMPATIBLES AND APPLE MACINTOSH COMPUTERS AND SELLS IN STORES AND MAILORDER CATALOGS FOR 200 TO 250 THE MAC VERSION IS AT THE UPPER END OF THIS RANGE DUE TO A DIFFERENT CABLE AND SOFTWARE THIS MODEM SET UP IN MINUTES AND HAS PERFORMED FLAWLESSLY SPEEDING UP MY SESSIONS ON SERVICES LIKE COMPUSERVE PRODIGY AND MCI MAIL WHICH ALL NOW PERMIT USERS TO LOG ON AT HIGH SPEEDS THE EXPERIENCE IS SO MUCH BETTER THAT IT'S HARD TO IMAGINE GOING BACK TO 2400 BPS MODEM ADVERTISING IS FULL OF TECHNOBABBLE TERMINOLOGY BUT THERE ARE JUST THREE MAIN FEATURES A MODEM SHOPPER NEEDS TO WORRY ABOUT THE FIRST ISSUE IS SPEED AND THAT'S WHAT HAS CHANGED DRAMATICALLY IN RECENT MONTHS A MODEM CAPABLE OF PROCESSING 14400 BPS IS YOUR BEST BET BECAUSE MOST COMMON ONLINE SERVICES WILL BE MOVING TOWARD THAT LEVEL IN THE NEXT YEAR OR TWO FEW ARE THERE NOW BUT MANY ARE ALREADY AT 9600 BPS A 14400BPS MODEM USUALLY LABELED IN TECHNOJARGON A V32 BIS MODEM CAN HANDLE SLOWER SPEEDS AS WELL WHEN IT ENCOUNTERS A DATA SOURCE LIMITED TO 9600 OR 2400 BPS IT AUTOMATICALLY DOWNSHIFTS FASTER MODEMS SAVE BOTH TIME AND TIMEBASED FEES ON POPULAR SERVICES THEORETICALLY 9600 BPS IS FOUR TIMES AS FAST AS 2400 BPS IN REALITY BECAUSE OF IMPERFECT PHONE LINES AND OTHER FACTORS DATA MAY NOT FLOW THAT FAST BUT IT'S LIKELY TO MOVE AT SAY TRIPLE THE RATE OF A 2400BPS CONNECTION YET ON COMPUSERVE THE HOURLY RATE FOR A 9600BPS LINK 16 IS ONLY TWICE AS HIGH AS THE 2400BPS RATE PRODIGY HAS NO 9600BPS PREMIUM YOU COULD GET BY WITH A 9600BPS MODEM INSTEAD OF A MORE COSTLY 14400BPS MODEL BUT I SUSPECT YOU WOULD HEAD BACK TO THE STORE NEXT YEAR FOR A HIGHERSPEED MODEM AS THE WORLD KEEPS MOVING UP SO IT MAKES SENSE TO JUMP ALL THE WAY TO 14400 FROM 2400 IF YOU HAVE THE MONEY BY THE WAY YOU SHOULD IGNORE ANY CLAIMS THAT A 14400BPS MODEM CAN ACTUALLY TRANSMIT AS FAST AS 57600 BPS THAT CAN ONLY HAPPEN IN THE UNLIKELY SITUATION WHERE COMPUTERS ON BOTH ENDS ARE USING THE SAME TYPE OF MODEM AND A BUNCH OF COMPLEX DATA COMPRESSION AND ERRORCORRECTION METHODS FAX CAPABILITY IS A SECOND ISSUE I HIGHLY RECOMMEND FAX MODEMS WHICH CAN RECEIVE RIGHT ON YOUR COMPUTER SCREEN DOCUMENTS SENT FROM FAX MACHINES MOST CAN ALSO SEND ANYTHING ON YOUR SCREEN TO A FAX MACHINE REGARDLESS OF THE SPEED AT WHICH A MODEM HANDLES DATA THE FAX PORTION OF THESE DEVICES ALMOST ALWAYS OPERATES AT 9600 BPS COMPUTERBASED FAXING HAS ITS LIMITS YOU CAN'T FAX HARD COPY LIKE A MAGAZINE ARTICLE THROUGH YOUR COMPUTER ONLY WHAT'S ON YOUR SCREEN BUT IT'S A CONVENIENT CAPABILITY NOW STANDARD IN SO MANY MODEMS YOU'D BE HARDPRESSED TO FIND A MODEL WITHOUT IT MAKE SURE YOU GET A MODEL THAT INCLUDES FIRSTRATE FAX SOFTWARE SUCH AS WINFAX FOR IBMCOMPATIBLES AND FAXSTF FOR MACS A THIRD ISSUE IS WHETHER TO BUY AN INTERNAL MODEM WHICH IS A CIRCUIT BOARD THAT MUST BE INSERTED INSIDE YOUR COMPUTER OR AN EXTERNAL MODEL LIKE THE SPORTSTER I TESTED WHICH IS A SMALL DESKTOP DEVICE THAT PLUGS INTO A STANDARD SOCKET ON THE BACK OF YOUR COMPUTER I VOTE FOR THE EXTERNAL DESIGN THOUGH IT MAY COST A BIT MORE THE EASE OF INSTALLATION IS WELL WORTH IT AND MOST EXTERNAL MODEMS ALSO HAVE INDICATOR LIGHTS THAT OFFER REASSURING FEEDBACK THAT YOUR DATA TRANSMISSION IS GOING PROPERLY IN ADDITION TO US ROBOTICS SUPRA IN ALBANY ORE ZOOM TELEPHONICS IN BOSTON AND OTHER FIRMS NOW SELL LOWPRICED HIGHSPEED MODEMS IF YOU LOOK AROUND YOU'LL FIND MORE AND MORE LOWPRICED BRANDS IDEALLY THE PROCESS OF BUYING A MODEM SHOULDN'T BE NECESSARY IN MY VIEW A FAST RELIABLE FAX MODEM SHOULD BE A STANDARD PART OF EVERY PC SOLD APPLE IBM AND OTHER COMPANIES ALREADY BUILD MODEMS GENERALLY 2400BPS MODELS AT LEAST FOR NOW INTO MOST PCS THEY SELL THROUGH MASS MERCHANTS AND INCLUDE TRIAL MEMBERSHIPS TO ONLINE SERVICES LET'S HOPE THAT TREND CONTINUES 9306030144 930603 AMBER'S STORES SALES FALL DALLAS AMBER'S STORES INC SAID SALES AT STORES OPEN AT LEAST A YEAR FELL 38 IN MAY FROM A YEAR EARLIER THE ARTS AND CRAFTS RETAILER SAID TOTAL SALES FOR THE MONTH INCREASED 48 TO 37 MILLION FROM 25 MILLION A YEAR EARLIER SAMESTORE SALES FOR THE FOUR MONTHS ENDED MAY 31 DROPPED 16 WHILE TOTAL SALES FOR THAT PERIOD INCREASED 54 TO 144 MILLION FROM 94 MILLION A YEAR EARLIER THE COMPANY WHICH OPERATES 27 STORES SAID ITS EXPANSION PLANS FOR 1993 ARE ON SCHEDULE IT OPENED TWO STORES IN THE HOUSTON AREA LAST WEEK 9306030143 930603 INTERNATIONAL CHINA LIFTS CONTROL ON EXCHANGE RATE FOR DOLLAR YUAN BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING CHINA LIFTED A FOREIGN EXCHANGE CONTROL THAT HAD DRIVEN MUCH OF THE COUNTRY'S CURRENCY TRADING INTO THE BLACK MARKET THE STATE ADMINISTRATION FOR EXCHANGE CONTROL ACKNOWLEDGED YESTERDAY THAT LIMITS ON THE US DOLLAR EXCHANGE RATE IMPOSED IN MIDFEBRUARY HAD BEEN LIFTED THE DAY BEFORE THE CONTROL WHICH CAPPED THE CHINESE YUANUS DOLLAR EXCHANGE RATE IN OFFICIAL EXCHANGE CENTERS AT JUST ABOVE 8TO1 WAS ABOLISHED WITHOUT PUBLIC ANNOUNCEMENT IT IS OUR INCLINATION TO LET SUPPLY AND DEMAND DECIDE THE EXCHANGE RATE SAID LI ZEXING DEPUTY CHIEF OF THE GOVERNMENT BODY'S EXCHANGE RATE DIVISION MR LI SAID A NEW CAP HADN'T BEEN SET BUT ADDED WE RETAIN THE RIGHT TO IMPOSE A NEW LIMIT CURRENCY TRADERS WEREN'T FORMALLY NOTIFIED OF THE POLICY CHANGE BUT WORD SPREAD QUICKLY ON TUESDAY WHEN THE SHANGHAI FOREIGN CURRENCY EXCHANGE CENTER APPROVED TRANSACTIONS AT MORE THAN 10 CHINESE YUAN TO 1 WHAT THEY HAVE DONE IS CORRECT A PREVIOUS MISTAKE SO THEY MAY HAVE CHOSEN NOT TO BRING A LOT OF ATTENTION TO THIS CHANGE SAID A BEIJING ECONOMIST WHEN ASKED WHY THERE HAD BEEN NO PUBLIC ANNOUNCEMENT CHINA NOW HAS ABOUT 100 GOVERNMENTRUN CURRENCY TRADING FLOORS KNOWN AS SWAP CENTERS THEY OPERATE INDEPENDENTLY OF EACH OTHER AND MOST ARE OPEN ONLY TWO OR THREE DAYS A WEEK SO IT WILL TAKE TIME TO SEE THE NATIONAL AFFECT OF THE ACTION SO FAR IT APPEARS THAT THE SWAP CENTERS ARE QUICKLY CATCHING UP TO THE PREVAILING BLACK MARKET RATE WHICH HAS BEEN ABOVE 10 CHINESE YUAN TO THE DOLLAR ON WEDNESDAY THE SHANGHAI SWAP CENTER CLOSED AT 1017 YUAN TO THE DOLLAR FOREIGN BUSINESS EXECUTIVES IN CHINA SAID THEY WERE RELIEVED BY THE GOVERNMENT'S ACTION AFTER THE CAP WAS IMPOSED THE OFFICIAL SWAP CENTERS BECAME USELESS BECAUSE THE AVAILABILITY OF DOLLARS DRIED UP FOREIGN COMPANIES WERE FORCED TO USE THE BLACK MARKET TO GET THE DOLLARS THEY NEEDED TO STAY IN BUSINESS FINDING DOLLARS BECAME SO COMPETITIVE THAT FOREIGN COMPANIES WERE DISPATCHING EMPLOYEES WITH CHECKBOOKS AND CELLULAR PHONES TO CITIES ACROSS CHINA IN SEARCH OF ANY BLACK MARKET CURRENCY DEALS THEY COULD DIG UP I THINK THE GOVERNMENT FINALLY REALIZED THAT THEY WERE TURNING EVERYBODY INTO CRIMINALS BY MAKING THEM TRADE IN THE BACK ALLEYS SAID A WESTERN BUSINESSMAN WHOSE COMPANY WAS HEAVILY INVOLVED IN BLACK MARKET TRADING LIFTING THE CAP WILL HAVE NO EFFECT ON CHINA'S OFFICIAL FOREIGN EXCHANGE RATE WHICH IS NOW ABOUT 57 YUAN TO 1 THAT RATE WILL STILL APPLY FOR EXCHANGING US DOLLARS IN BANKS AND PURCHASING FOREIGN EXCHANGE CERTIFICATES THE SPECIAL CURRENCY FOREIGNERS MUST USE IN CHINA 9306030142 930603 INVESTORS WITHDRAW ALMOST 13 BILLION FROM MONEY FUNDS A WALL STREET JOURNAL NEWS ROUNDUP INVESTORS WITHDREW NEARLY 13 BILLION FROM MONEYMARKET MUTUAL FUNDS IN THE LATEST WEEK WHILE YIELDS INCHED UPWARD IBC/DONOGHUE'S AVERAGE SEVENDAY COMPOUND YIELD ON TAXABLE FUNDS CREPT UP TO 266 FROM 263 IN THE WEEK ENDED TUESDAY ACCORDING TO MONEY FUND REPORT AN ASHLAND MASS NEWSLETTER COMPOUND YIELDS ASSUME REINVESTMENT OF DIVIDENDS ASSETS OF 599 TAXABLE FUNDS DROPPED BY 1202 BILLION TO 47459 BILLION THE NEWSLETTER REPORTED INSTITUTIONAL INVESTORS ACCOUNTED FOR ABOUT 102 BILLION OF THE OUTFLOW WALTER FRANK CHIEF ECONOMIST FOR MONEY FUND REPORT SAID INVESTORS WERE MOVING TO TAKE ADVANTAGE OF SLIGHTLY HIGHER YIELDS ON DIRECT INVESTMENTS IN THE LAST COUPLE OF WEEKS HE NOTED THAT SHORTTERM INTEREST RATES TICKED UP IN LATE MAY IN RESPONSE TO REPORTS THAT THE FEDERAL RESERVE IS LEANING TOWARD HIGHER SHORTTERM RATES AND THEN STABILIZED AVERAGE MATURITY OF THE TAXABLE FUNDS' INVESTMENTS WHICH INCLUDE COMMERCIAL PAPER SHORTTERM CORPORATE IOUS AND TREASURY BILLS REMAINED AT 64 DAYS A SIGN THAT PORTFOLIO MANAGERS DON'T EXPECT A SIGNIFICANT RATE INCREASE ANY TIME SOON THE AVERAGE SEVENDAY SIMPLE YIELD ON TAXABLE FUNDS ROSE TO 262 FROM 259 MONEY FUND REPORT SAID THE AVERAGE 30DAY SIMPLE YIELD REMAINED AT 260 WHILE THE AVERAGE 30DAY COMPOUND YIELD REMAINED AT 264 THE AVERAGE SEVENDAY COMPOUND YIELD ON TAXEXEMPT MONEY FUNDS ROSE TO 223 FROM 218 ACCORDING TO MONEY FUND REPORT THE LATEST YIELD IS EQUIVALENT TO A TAXABLE 310 FOR AN INVESTOR IN THE 28 TAX BRACKET AND TO 323 FOR SOMEONE PAYING 31 IN TAXES ASSETS OF 921 TAXFREE FUNDS SLIPPED BY 8012 MILLION TO 9941 BILLION AVERAGE MATURITY OF THE TAXFREE FUNDS WHICH INVEST PRIMARILY IN SHORTTERM MUNICIPAL SECURITIES REMAINED AT 48 DAYS 9306030140 930603 WHO'S NEWS WESTMORELAND COAL CO WESTMORELAND COAL CO PHILADELPHIA CHRISTOPHER K SEGLEM 46 YEARS OLD PRESIDENT AND CHIEF OPERATING OFFICER WAS NAMED TO THE ADDITIONAL POST OF CHIEF EXECUTIVE OFFICER HE SUCCEEDS PEMBERTON HUTCHINSON 62 WHO REMAINS CHAIRMAN 9306030139 930603 WHO'S NEWS LS STARRETT CO LS STARRETT CO ATHOL MASS WILLIAM S HURLEY 49 YEARS OLD WAS NAMED A DIRECTOR OF THIS MAKER OF PRECISION TOOLS HE IS VICE PRESIDENT CONTROLLER OF BOLT BERANEK & NEWMAN INC IN CAMBRIDGE MASS HE FILLS A VACANCY CREATED BY THE RESIGNATION OF GEORGE C UNDERWOOD 66 IN MARCH 9306030138 930603 WHO'S NEWS OREGON METALLURGICAL CORP OREGON METALLURGICAL CORP ALBANY ORE CARLOS E AGUIRRE 49 YEARS OLD WAS NAMED CHIEF EXECUTIVE OFFICER AND PRESIDENT OF THIS MATERIALS COMPANY MR AGUIRRE WHO WAS PRESIDENT OF AXEL JOHNSON METALS INC SUCCEEDS FRANK CAPUTO WHO RETIRED 9306030137 930603 NEW IRS CHIEF SAYS AGENCY TO CONTINUE FOCUSING ON EDUCATION AND ASSISTANCE BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE NEW COMMISSIONER OF THE INTERNAL REVENUE SERVICE PLANS TO STAY ON THE SAME PATH AS HER PREDECESSORS STRESSING EDUCATION AND ASSISTANCE TO THE PUBLIC IN AN EFFORT TO IMPROVE COMPLIANCE WITH THE TAX LAWS BUT AT THE SAME TIME SHE'S DETERMINED THAT PEOPLE NOT VIEW THE IRS AS GOING SOFT ON THOSE WHO BREAK THE RULES I THINK IT WOULD BE WRONG NOT TO STEP UP ENFORCEMENT EFFORTS AT THE SAME TIME WE ARE FINDING WAYS TO REDUCE TAXPAYER BURDEN MARGARET RICHARDSON WHO WAS SWORN IN THREE WEEKS AGO AS THE 44TH IRS COMMISSIONER SAID IN HER FIRST INTERVIEW SINCE TAKING OFFICE UNDER THE THREE REPUBLICANS WHO PRECEDED MS RICHARDSON AT THE HELM OF THE IRS THE AGENCY TRIED TO TREAT TAXPAYERS AS CUSTOMERS OFFERING TO COMPROMISE WITH THEM WHEN APPROPRIATE THE GOALS WERE TO INCREASE VOLUNTARY COMPLIANCE LESSEN THE HASSLE FOR TAXPAYERS AND IMPROVE PEOPLE'S SATISFACTION WITH THE SYSTEM YES WE'RE GOING TO CONTINUE DOWN THAT PATH MS RICHARDSON SAID ADDING THAT IF ANYTHING SHE'D LIKE TO SPEED UP SOME OF THE EFFORTS BEGUN EARLIER IT'S HARD TO QUARREL WITH THE STRATEGY AND THE GOALS NONETHELESS SOME DO DONALD ALEXANDER WHO SERVED AS IRS COMMISSIONER IN THE MID1970S THINKS THE AGENCY HAS BEEN MARCHING IN THE WRONG DIRECTION THE NOTION THAT STRESSING QUALITY AND CUSTOMER SATISFACTION WILL IMPROVE TAXPAYER COMPLIANCE MAKES NO SENSE HE SAID IT'S SO FALLACIOUS AS TO BE LUDICROUS CLEARLY SENSITIVE TO SUCH CRITICISM MS RICHARDSON VOWED TO CHANGE THE PERCEPTION THAT WE DO NOT PUT A HIGH PRIORITY ON ENFORCEMENT FOR EXAMPLE WHILE SUPPORTING THE IRS PROGRAM TO FORGO PROSECUTION OF THOSE WHO HAVEN'T FILED TAX RETURNS BUT VOLUNTARILY COME FORWARD TO PAY UP SHE ASSERTED THAT WE'RE NOT GOING TO BE SHY ABOUT GOING AFTER THOSE WHO CONTINUE TO BREAK THE LAW MS RICHARDSON ADDED THAT RATHER THAN JUST HAVING THE IRS PERFORM MORE AUDITS SHE HOPES TO FOCUS ENFORCEMENT EFFORTS BETTER DOING MORE RESEARCH AND TARGETING SPECIFIC GROUPS THAT AREN'T COMPLIANT MEANWHILE SHE PLEDGED TO PUT MORE RESOURCES ON THE FRONT LINES TO ASSIST TAXPAYERS TO THAT END SHE IS PLANNING A REORGANIZATION THAT AS A FIRST STEP WILL SEE 2000 POSITIONS MOVED FROM IRS HEADQUARTERS IN WASHINGTON TO VARIOUS FIELD OFFICES OVER THE NEXT FEW YEARS THERE CURRENTLY ARE 7175 IRS EMPLOYEES IN WASHINGTON AND 115000 OVERALL CONCERNING OTHER MATTERS MS RICHARDSON ACKNOWLEDGED THAT ADMINISTERING THE PROPOSED ENERGY TAX WILL BE A MAJOR CHALLENGE ESPECIALLY IF THE HOUSE'S DECISION TO HAVE SOME OF THE LEVY IMPOSED AT THE CONSUMER LEVEL BECOMES THE LAW STILL SHE SAID THAT DOESN'T MEAN IT CAN'T BE WORKED OUT AND WORKED OUT WELL TOUTED SOCALLED ADVANCE PRICING AGREEMENTS WHICH ARE STRUCK BETWEEN THE IRS AND MULTINATIONAL COMPANIES THE ACCORDS DETERMINE UP FRONT HOW SUCH COMPANIES WILL ACCOUNT FOR ASSETS TRANSFERED BETWEEN PARENT COMPANIES AND THEIR OFFSHORE SUBSIDIARIES I SEE A BRIGHTER FUTURE FOR THE WHOLE CONCEPT AS OPPOSED TO SQUARING OFF IN COURT MS RICHARDSON SAID SAID SHE WANTS TO ENSURE THAT THE IRS KEEPS UP WITH CHANGES IN TECHNOLOGY AS IT SEEKS TO MODERNIZE ITS COMPUTER SYSTEMS SO WE WILL BE IN THE STATEOFTHEART WHEN WE GET WHERE WE'RE GOING BECAUSE OF THE MOVES MADE BY HER PREDECESSORS MS RICHARDSON SAID SHE BELIEVES SHE IS ARRIVING AT A GOOD TIME ALREADY SHE NOTED THERE'S BEEN A LOT OF SOULSEARCHING DONE AT THE IRS BUT SOME THINK THAT BECAUSE THE FRAMEWORK FOR CHANGES AT THE IRS HAS BEEN LAID OUT FOR SO LONG THE PRESSURE IS ON MS RICHARDSON TO FINALLY MAKE THINGS HAPPEN THE GENERAL ACCOUNTING OFFICE FOR INSTANCE HAS SAID THE IRS STILL NEEDS TO WORK ON COLLECTING THE 30 BILLION IN DELINQUENT TAXES IT SEES AS RETRIEVABLE SHE'S GOING TO BE THE PERSON IN THE CHAIR WHO HAS THE PLEASURE AND THE PAIN OF DELIVERING SAID FRED GOLDBERG WHO SERVED AS IRS COMMISSIONER UNDER PRESIDENT BUSH 9306030136 930603 ECONOMY INDEX OF LEADING INDICATORS RISES AN ANEMIC 01 FORECASTING GAUGE AUGURS SLUGGISH GROWTH AHEAD BUT SALES OF HOMES SOAR BY PEARL THEVANAYAGAM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE GOVERNMENT'S CHIEF GAUGE FOR FORECASTING THE FUTURE OF THE ECONOMY INCREASED ONLY SLIGHTLY IN APRIL SUGGESTING THAT ECONOMIC GROWTH IS LIKELY TO CONTINUE AT ITS SLUGGISH PACE THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS ROSE JUST 01 DURING THE MONTH THE SMALL RISE COMES ON TOP OF A 1 PLUNGE IN MARCH WHICH WAS THE LARGEST DROP IN ROUGHLY TWO YEARS THE LEADING INDICATORS CONFIRM THAT THERE ARE SLUGGISH UNDERCURRENTS IN THE ECONOMY IN THE SECOND QUARTER SAID CARL PALASH SENIOR ECONOMIST AT MCCARTHY CRISANTI & MAFFEI INC A FINANCIAL ANALYSIS CONCERN THE INDEX IS MEANT TO PREDICT THE STRENGTH OF THE ECONOMY SIX TO NINE MONTHS DOWN THE ROAD THE ECONOMY IS FAR FROM HAVING LOST ALL ITS MOMENTUM HOWEVER IN A SEPARATE REPORT THE COMMERCE DEPARTMENT SAID SALES OF NEW HOUSES SOARED 227 IN APRIL TO AN ANNUAL RATE OF 751000A SIXYEAR HIGH THE IMPROVEMENT WAS BROADBASED WITH SALES INCREASING IN EVERY REGION OF THE COUNTRY ANALYSTS SAID LOW INTEREST RATES PLAYED A ROLE IN THE INCREASE BUT CAUTIONED THAT THE STRONG PERFORMANCE ALSO WAS THE RESULT OF A REBOUND AFTER INCLEMENT WEATHER IN MARCH THAT MEANS APRIL'S BIG INCREASE ISN'T LIKELY TO BE SUSTAINED SIX OF THE 11 STATISTICS THAT MAKE UP THE LEADINGINDICATOR INDEX CONTRIBUTED TO ITS RISE IN APRIL THEY INCLUDED CHANGES IN THE AVERAGE WORK WEEK BUILDING PERMITS DELIVERY DELAYS MANUFACTURERS' NEW ORDERS FOR CONSUMER GOODS AND MATERIALS CONSUMER EXPECTATIONS AND NEW CLAIMS FOR UNEMPLOYMENT BENEFITS THE INDEX WAS HURT MOST BY A DROP IN CONTRACTS AND ORDERS FOR PLANT AND EQUIPMENT THE CHANGES IN THE MONEY SUPPLY MANUFACTURER'S UNFILLED ORDERS OF DURABLE GOODS SENSITIVE MATERIAL PRICES AND STOCK PRICES ALSO WEIGHED DOWN THE INDEX ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE THE NET CONTRIBUTIONS OF THE COMPONENTS OF THE COMMERCE DEPARTMENT'S INDEX OF LEADING INDICATORS THE SEASONALLY ADJUSTED INDEX NUMBERS 1982=100 FOR APRIL AND THE CHANGE FROM MARCH ARE THE RATIO OF COINCIDENT TO LAGGING INDICATORS WAS 120 DOWN FROM 121 IN MARCH 9306030135 930603 U S WEST OFFERS NEW SERVICES ENGLEWOOD COLO U S WEST INC SAID CUSTOMERS OF ITS U S WEST CELLULAR UNIT IN THE SEATTLE/PUGET SOUND REGION WILL BE THE FIRST IN THE NATION TO RECEIVE DIGITAL MESSAGING SERVICES THE SERVICE USES MOTOROLA INC TECHNOLOGY AND ALLOWS CELLULAR PHONES TO BE USED AS PAGERS ONE FEATURE ALLOWS A CUSTOMER TO RECEIVE A TEXT MESSAGE ON THE NUMBERDISPLAY SCREEN OF THE CELLULAR PHONE WHILE ANOTHER ALERTS THE CUSTOMER WITH A SHORT BEEP THAT A VOICEMAIL MESSAGE HAS BEEN RECEIVED A THIRD FEATURE ALLOWS CALLERS TO SEND A CALLBACK NUMBER IF THE CUSTOMER'S PHONE IS BUSY TURNED OFF OR OUT OF THE SERVICE AREA THE COMPANY SAID MORE THAN 18000 CUSTOMERS IN THE PUGET SOUND AREA CAN TAKE ADVANTAGE OF THE NEW DIGITAL SERVICES WHICH WILL BE OFFERED AS A PACKAGE FOR 995 A MONTH 9306030134 930603 BUSINESS BRIEFS TELECOMMUNICATIONS INC AND THE LENFEST GROUP COMPLETED THEIR JOINT PURCHASE OF NEARLY 30 OF FRENCH CABLE CONCERN VIDEOPOLE FOR 10 MILLION JENNIFER CONVERTIBLES INC OPENED SIX NEW LICENSED SOFA BED STORES LAST MONTH BRINGING THE TOTAL TO 67 JENNIFER EXPECTS TO OPEN 50 TO 60 LICENSED STORES ON THE WEST COAST IN THE NEXT YEAR MARK IV INDUSTRIES INC COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF PIRELLI TRASMISSIONI INDUSTRIALI SPA A UNIT OF PIRELLI SPA FOR ABOUT 115 MILLION ECOGEN INC SIGNED A LETTER OF INTENT WITH CHINA NATIONAL GREEN FOOD CORP A UNIT OF CHINA'S AGRICULTURAL MINISTRY TO EVALUATE THE POTENTIAL TO PRODUCE BIOLOGICAL INSECTICIDES BEL FUSE INC SIGNED A JOINT TECHNOLOGY AGREEMENT WITH THE CIRCUIT PROTECTION UNIT OF NIPPON MINING CO'S GOULD INC TO DEVELOP NEW FUSE PRODUCTS AND OTHER ELECTRONIC COMPONENTS HANGER ORTHOPEDIC GROUP INC ACQUIRED WINTER PARK ORTHOTICS & PROSTHETICS INC TERMS WEREN'T DISCLOSED VMX INC SETTLED A PATENT INFRINGEMENT LAWSUIT WITH MICROLOG CORP AND MICROLOG AGREED TO LICENSE CERTAIN PATENTS FROM VMX TERMS WEREN'T DISCLOSED 9306030133 930603 POTOMAC SEEKS RATE INCREASE WASHINGTON POTOMAC ELECTRIC POWER CO FILED FOR AN 88 RATE INCREASE WITH THE MARYLAND PUBLIC UTILITIES SERVICE COMMISSION SEEKING AN ANNUAL REVENUE INCREASE OF 819 MILLION THE UTILITY SAID IT NEEDED THE RATE INCREASE PROPOSED TO TAKE EFFECT IN EARLY 1994 TO PAY FOR AMONG OTHER EXPENSES INCREASINGLY STRINGENT CLEAN AIR RULES INCREASED TAXES AND INCREASED OPERATING COSTS 9306030132 930603 CREDIT RATINGS STANDARD & POOR'S CORP GIVES FAVORABLE RATING TO WASHINGTON BONDS NEW YORK STANDARD & POOR'S CORP SAID IT GAVE A SINGLEAMINUS RATING TO 1567 MILLION IN GENERAL OBLIGATION BONDS ISSUED BY THE DISTRICT OF COLUMBIA REFLECTING THE CITY'S STRONG ECONOMIC TIES TO THE FEDERAL GOVERNMENT S&P ALSO ASSIGNED A TRIPLEA RATING TO AN ADDITIONAL 1587 MILLION OF INSURED BONDS ISSUED BY THE DISTRICT AND AFFIRMED RATINGS ON NEARLY 2 BILLION IN OTHER BONDS CALLING THE CITY'S RATING OUTLOOK STABLE THE RATING AGENCY SAID ITS LONGTERM RATINGS REFLECT THE CITY'S TIES TO THE FEDERAL GOVERNMENT A SUBSTANTIAL TAXABLE PROPERTY BASE HIGH PERCAPITA INCOME LEVELS AND THE DISTRICT'S ABILITY TO DRAW ON THE US TREASURY TO MEET GENERAL AND DEBT SERVICE EXPENSES THOSE STRENGTHS HOWEVER ARE OFFSET BY THE CITY'S HIGH DEBT LEVELS SIGNIFICANT CAPITAL NEEDS A LARGE UNFUNDED PENSION LIABILITY AND ESCALATING NEEDS FOR SOCIAL SERVICES AND CRIMINAL JUSTICE EXPENDITURES S&P ADDED THE DISTRICT FACES A PROJECTED 274 MILLION GAP IN ITS 35 BILLION BUDGET FOR FISCAL 1994 ENDING SEPT 30 BUT S&P SAID IT EXPECTS THE CITY WILL ACT AGGRESSIVELY TO CLOSE THE GAP AS IT HAS IN THE PAST TWO FISCAL YEARS 9306030131 930603 TECHNOLOGY DELL COMPUTER SUED BY HOLDERS WHO CLAIM COMPANY MISLED THEM AUSTIN TEXAS A GROUP OF DELL COMPUTER CORP SHAREHOLDERS HAS SUED THE PERSONALCOMPUTER COMPANY CLAIMING THEY WERE MISLED ABOUT A NOTEBOOK COMPUTER PROBLEM THAT LAST WEEK SENT DELL'S STOCK PLUNGING 23 THE SHAREHOLDERS IN AT LEAST 10 DIFFERENT LAWSUITS FILED THIS WEEK IN US DISTRICT COURT HERE SAID DELL OFFICIALS INCLUDING CHAIRMAN MICHAEL S DELL MISLED THEM ABOUT THE COMPANY'S PROSPECTS AND THE EXTENT OF ITS NOTEBOOK WOES LAST WEEK DELL BASED IN AUSTIN SAID IT PLANNED TO CANCEL A DISAPPOINTING NEW LINE OF NOTEBOOK PCS RESULTING IN A 20 MILLION REDUCTION IN FISCAL FIRSTQUARTER EARNINGS AND LOWERING DELL'S PERSHARE EARNINGS BY 35 CENTS THE NEWS SENT DELL STOCK ONCE A WALL STREET FAVORITE PLUNGING 7375 CAUSING THE COMPANY TO LOSE NEARLY A QUARTER OF ITS MARKET VALUE IN OVERTHECOUNTER TRADING YESTERDAY DELL SLIPPED 1125 TO 23625 THE SHAREHOLDERS WHO ARE SEEKING CLASSACTION STATUS NOTE IN THE LAWSUITS THAT THE COMPANY'S BAD NOTEBOOK NEWS CAME ONLY TWO AND A HALF MONTHS AFTER MR DELL BEGAN SELLING SOME OF HIS STOCK IN THE COMPANY MR DELL IN MARCH SOLD 276000 SHARES FOR ABOUT 105 MILLION COMPANY OFFICIALS SAID THE SALE ACCOUNTS FOR LESS THAN 3 OF MR DELL'S HOLDINGS IN THE COMPANY AND WAS PART OF A ROUTINE SHIFT OF THE EXECUTIVE'S INVESTMENT PORTFOLIO AS TO THE LAWSUITS A DELL SPOKESMAN SAID THE COMPANY WOULDN'T COMMENT UNTIL IT HAS REVIEWED ALL OF THE FILINGS 9306030130 930603 CANADIAN BOND AUCTION OTTAWA THE CANADIAN GOVERNMENT REPORTED AN AVERAGE YIELD OF 6384 AT AN AUCTION OF 210 BILLION CANADIAN DOLLARS US165 BILLION OF 625 BONDS DUE SEPT 15 1995 THE EQUIVALENT PRICE OF THE AVERAGE YIELD WAS 99711 PROCEEDS OF THE ISSUE WILL BE USED FOR GENERAL GOVERNMENT PURPOSES 9306030129 930603 LAW LEGAL BEAT FIRMS GET MORE LEEWAY TO LIMIT POLITICAL ACTIVISM IN WORKPLACE BY EDWARD FELSENTHAL AND RICHARD B SCHMITT STAFF REPORTERS OF THE WALL STREET JOURNAL A FEDERAL APPEALS COURT HAS GIVEN EMPLOYERS MORE LEEWAY TO RESTRICT THEIR WORKERS' ONTHEJOB POLITICAL ACTIVISM THE COURT SAID A COMPANY DOESN'T HAVE TO PERMIT EMPLOYEES WHO ARE MEMBERS OF AN OUTSIDE GROUP IN THIS CASE A GROUP OPPOSED TO DRUG TESTING TO DISTRIBUTE INFORMATION ON THE JOB MANY OF THE SUBJECTS OF THESE SINGLEISSUE ORGANIZATIONS ARE HIGHLY CONTROVERSIAL AND COULD INJECT INTO THE WORKPLACE A LEVEL OF HOSTILITY AND ANIMOSITY AMONG EMPLOYEES THAT MOST EMPLOYERS WORK HARD TO ELIMINATE SAID THE FIFTH US CIRCUIT COURT OF APPEALS IN NEW ORLEANS THE CASE AROSE AFTER EMPLOYEES AT A MOTOROLA INC PLANT IN AUSTIN TEXAS BEGAN MOBILIZING AGAINST THE COMPANY'S PLANS TO TEST WORKERS FOR DRUG USE SEVERAL OF THE EMPLOYEES JOINED CITIZENS ADVOCATING PROTECTION OF PRIVACY AN AUSTIN GROUP THAT OPPOSED EMPLOYEE DRUG TESTING ONE OF THE EMPLOYEES SOUGHT MOTOROLA'S PERMISSION TO HAND OUT TO OTHER WORKERS INFORMATION ABOUT DRUG TESTING AND ABOUT JOINING THE GROUP A COMPANY OFFICIAL REJECTED THE REQUEST SAYING THE OUTSIDE GROUP WAS AKIN TO A POLITICAL PARTY THE OFFICIAL SAID THAT IF MOTOROLA PERMITTED THE ORGANIZATION TO DISTRIBUTE LITERATURE ON THE PREMISES IT WOULD HAVE TO ALLOW OTHER POLITICAL GROUPS TO HAND OUT MATERIALS AS WELL A NATIONAL LABOR RELATIONS BOARD ADMINISTRATIVE LAW JUDGE RULED AGAINST THE COMPANY AND FOUND THAT THE RESTRICTIONS ON DISTRIBUTING LITERATURE WERE AN UNFAIR LABOR PRACTICE REVERSING THE DECISION OF THE ADMINISTRATIVE LAW JUDGE THE APPEALS COURT SAID ALLOWING THE GROUP TO CIRCULATE ITS LITERATURE WOULD AUTHORIZE ANY POLITICAL SPLINTER GROUP WITH EMPLOYEE MEMBERS TO DISSEMINATE LITERATURE AT THE WORKPLACE AS LONG AS THE GROUP'S AGENDA INCLUDES SOME ISSUE RELEVANT TO THAT WORKPLACE DECISIONS BY THE FIFTH CIRCUIT ARE BINDING IN LOUISIANA MISSISSIPPI AND TEXAS LARRY CARY A NEW YORK LABOR LAWYER WITH THE FIRM VLADECK WALDMAN ELIAS & ENGELHARD SAID THE CASE IS SIGNIFICANT BECAUSE IT TENDS TO ERODE EMPLOYEE SPEECH RIGHTS HE SAID EMPLOYEES SHOULD BE ALLOWED TO DISTRIBUTE LITERATURE ON POLITICAL ISSUES SUCH AS DRUG TESTING THAT HAVE A DIRECT RELATIONSHIP ON THEIR ECONOMIC LIVES DAVID PARKER A SPOKESMAN FOR THE NLRB WHICH ARGUED THE CASE ON BEHALF OF THE EMPLOYEES SAID THE AGENCY HASN'T DECIDED WHETHER TO APPEAL THE RULING THE JUSTICE DEPARTMENT SUED THE DISTRICT OF COLUMBIA GOVERNMENT SAYING OFFICIALS VIOLATED FEDERAL HOUSING LAWS IN REFUSING TO ISSUE A ZONING PERMIT TO A GROUP HOME FOR RECOVERING ALCOHOLICS AND DRUG ADDICTS OXFORD HOUSE INC WHICH HAS SPONSORED 400 SUCH GROUP HOMES NATIONALLY HAD SOUGHT AN EXEMPTION FROM DISTRICT ZONING LAWS THAT PROHIBIT GROUPS OF SEVEN OR MORE UNRELATED PERSONS FROM LIVING TOGETHER THE SUIT FILED IN US DISTRICT COURT IN WASHINGTON ALLEGES THAT DISTRICT OFFICIALS' REFUSAL TO ISSUE AN OCCUPANCY PERMIT VIOLATED A PROVISION OF THE FEDERAL FAIR HOUSING ACT THAT BARS DISCRIMINATION AGAINST HANDICAPPED PERSONS THE CIVIL RIGHTS SUIT PUTS THE GOVERNMENT IN THE MIDDLE OF A NATIONAL DEBATE INVOLVING THE RIGHTS OF LOCAL GOVERNMENTS AND NEIGHBORHOODS TO REGULATE SUCH FACILITIES SUCH GROUP HOMES HAVE GROWN IN NUMBER SINCE ENACTMENT OF A FEDERAL ANTIDRUG LAW IN 1988 THAT PROVIDES FINANCIAL INCENTIVES TO LOCAL GOVERNMENTS TO ESTABLISH THEM THEY ARE OTHERWISE SELFGOVERNED AND SELFSUPPORTED THEY ALSO USUALLY CAN'T OPERATE WITH FEWER THAN SIX RESIDENTS WHICHHAS RESULTED IN COLLISIONS AROUND THE COUNTRY WITH LOCAL COMMUNITIES AND ZONING AUTHORITIES SEEKING TO DISPLACE THE FACILITIES LAWYERS SAID FEDERAL ANTIDISCRIMINATION LAWS CLEARLY TAKE PRECEDENT IN SUCH CASES ALTHOUGH ENFORCEMENT HAS BEEN AN ISSUE IT IS NOT CLOSE AS A MATTER OF LAW BUT ILLEGAL USE OF ZONING IS VERY COMMON SAID JOHN C KENNEY JR HEAD OF THE PRO BONO PRACTICE AT HOGAN & HARTSON STEVEN POLIN DIRECTOR OF COMMUNITY AFFAIRS FOR OXFORD HOUSE BASED IN SILVER SPRING MD SAID ABOUT 10 OF THE GROUP HOMES IT HAS ORGANIZED HAVE HAD ZONING PROBLEMS DISTRICT GOVERNMENT OFFICIALS COULDN'T BE REACHED TO COMMENT ON THE SUIT THE FEDERAL SUIT SEEKS AN INJUNCTION AS WELL AS COMPENSATRY AND PUNITIVE DAMAGES THE JUSTICE DEPARTMENT SAID IT OFFERED TO SETTLE THE CASE BEFORE FILING SUIT BUT THAT DISTRICT OFFICIALS DECLINED THE NATIONAL ASSOCIATION OF SECURITIES DEALERS HAS BEEN DISQUALIFIED FROM ARBITRATING A SEXDISCRIMINATION AND AGEDISCRIMINATION LAWSUIT BROUGHT AGAINST CHARLES SCHWAB & CO BECAUSE THE COMPANY'S CHAIRMAN SERVES ON THE NASD'S GOVERNING BOARD BARBARA WOLFE FORMER EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER LAST YEAR FILED A WRONGFULTERMINATION LAWSUIT AGAINST THE SAN FRANCISCO DISCOUNT BROKERAGE COMPANY AND FOUR OF ITS SENIOR EXECUTIVES INCLUDING CHAIRMAN CHARLES R SCHWAB DEBORAH S BALLATI A PARTNER WITH FARELLA BRAUN & MARTEL IN SAN FRANCISCO WHICH REPRESENTS MRS WOLFE SAID IN A STATEMENT THAT MRS WOLFE'S SUIT ALLEGES THAT SHE WAS FIRED IN RETALIATION FOR HER COMPLAINTS ABOUT DAVID POTTRUCK NOW SCHWAB'S CHIEF EXECUTIVE OFFICER JUDGE LUCY KELLY MCCABE A STATE JUDGE IN SAN FRANCISCO LAST YEAR GRANTED THE DEFENDANTS' REQUEST TO POSTPONE THE COURT PROCEEDINGS AND ORDERED THE DISPUTE TO BE HEARD BY ARBITRATORS FOR THE NASD SOON AFTER MRS WOLFE LEARNED THAT MR SCHWAB HAD BEEN ELECTED TO SERVE ON THE NASD'S BOARD OF GOVERNORS FOR A THREEYEAR TERM BEGINNING THIS JANUARY THE BOARD OVERSEES THE OPERATION OF THE NASD LAST WEEK JUDGE MCCABE GRANTED MRS WOLFE'S REQUEST AND ORDERED THE CASE BE HEARD BY ARBITRATORS FOR THE NEW YORK STOCK EXCHANGE INSTEAD BECAUSE THE JUDGE SAID THE ARBITRATORS WHO HAVE BEEN APPOINTED TO SERVE ON THE NASD PANEL CANNOT BE IMPARTIAL WHEN ONE OF THE INDIVIDUAL PARTIES BEFORE THEM IS ALSO A MEMBER OF THE BOARD OF GOVERNORS OF THE NASD HUGO QUACKENBUSH A SCHWAB SPOKESMAN SAID OTHER JUDGES HAVE RULED THAT NASD ARBITRATORS ARE DISTINCT AND SEPARATE FROM THE BOARD OF GOVERNORS AND MAINTAIN THEIR IMPARTIALITY WHEN HEARING SUCH CASES MR QUACKENBUSH SAID NO DECISION HAD BEEN REACHED ON WHETHER TO APPEAL THE RULING HE ALSO SAID THAT MRS WOLFE'S CLAIMS ARE WITHOUT MERIT WOLFE VS SCHWAB SAN FRANCISCO COUNTY SUPERIOR COURT NO WHO'S NEWS MORRIS B ABRAM REJOINED NEW YORK LAW FIRM PAUL WEISS RIFKIND WHARTON & GARRISON AS OF COUNSEL MR ABRAM RECENTLY COMPLETED HIS APPOINTMENT AS US AMBASSADOR TO THE EUROPEAN OFFICE OF THE UNITED NATIONS ASBESTOS COVERAGE A FORMER ASBESTOS MAKER CAN GET COMPLETE COVERAGE FROM ANY OF ITS INSURERS FOR ASBESTOS PERSONALINJURY CLAIMS THE PENNSYLVANIA SUPREME COURT RULED THE COURT OVERTURNED A LOWERCOURT DECISION HOLDING THAT COVERAGE SHOULD BE DIVIDED AMONG INSURERS BASED ON HOW LONG EACH HAD INSURED THE COMPANY THE DECISION CAME IN THE CASE OF JH FRANCE REFRACTORIES CO NOW OWNED BY VAN BRUNT CO AND THE HALFDOZEN INSURERS THE COMPANY USED OVER A 15YEAR PERIOD JH FRANCE REFRACTORIES VS ALLSTATE PENNSYLVANIA SUPREME COURT EASTERN DISTRICT DOCKET J12392 YORK AFFIRMED THE DISMISSAL OF A LAWSUIT BROUGHT BY 91 INVESTORS AGAINST LLOYD'S OF LONDON AND ITS AGENTS THE APPELLATE PANEL SAID LEGAL CLAIMS AGAINST THE INSURANCE CONCERN SHOULD BE HANDLED BY BRITISH COURTS THE INVESTORS FILED SUIT AFTER LLOYD'S POSTED A LOSS FOR 1989 THE SUIT ALLEGED THAT LLOYD'S FRAUDULENTLY INDUCED THE INVESTORS TO PARTICIPATE IN ITS INSURANCE SYNDICATES ROBY VS LLOYD'S SECOND US CIRCUIT COURT OF APPEALS NEW YORK 929032 ARTHUR S HAYES IN NEW YORK CONTRIBUTED TO THIS ARTICLE 9306030128 930603 WHO'S NEWS AMERICAN INTERNATIONAL GROUP INC AMERICAN INTERNATIONAL GROUP INC NEW YORK BRIAN DUPERREAULT 46 YEARS OLD WAS NAMED EXECUTIVE VICE PRESIDENT FOREIGN GENERAL INSURANCE A NEWLY CREATED POSITION AT THE COMMERCIAL INSURANCE COMPANY MR DUPERREAULT CONTINUES AS PRESIDENT OF AMERICAN INTERNATIONAL UNDERWRITERS THE OVERSEAS PROPERTYCASUALTY SUBSIDIARY OF AIG AMERICAN INTERNATIONAL GROUP INC NAMED BRIAN DUPERREAULT EXECUTIVE VICE PRESIDENT FOREIGN GENERAL INSURANCE FILLING A VACANCY AN ITEM YESTERDAY INCORRECTLY SAID THE POSITION WAS NEWLY CREATED 9306030127 930603 WHO'S NEWS SOCIETE BIC SA SOCIETE BIC SA PARIS BRUNO BICH 46 YEARS OLD WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER SUCCEEDING HIS 78YEAROLD FATHER MARCEL BICH WHO WILL REMAIN A DIRECTOR OF THIS DIVERSIFIED MAKER OF CONSUMER PRODUCTS THE YOUNGER MR BICH ALSO IS CHAIRMAN AND CHIEF EXECUTIVE OF BIC CORP OF MILFORD CONN A MAKER OF PENS LIGHTERS AND DISPOSABLE RAZORS WHICH IS 63 OWNED BY SOCIETE BIC 9306030126 930603 WHO'S NEWS REAL ESTATE INVESTMENT TRUST OF CALIFORNIA REAL ESTATE INVESTMENT TRUST OF CALIFORNIA LOS ANGELES JAY W PAULY WAS NAMED AS PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING WILLIAM A WALTERS JR WHO RETIRED MR PAULY 52 YEARS OLD PREVIOUSLY WAS FIRST VICE PRESIDENT DIRECTOR OF REAL ESTATE FOR HOME SAVINGS OF AMERICA MR WALTERS 68 REMAINS CHAIRMAN OF THE CONCERN WHICH HOLDS 34 APARTMENT COMPLEXES SHOPPING CENTERS AND OTHER PROPERTIES IN CALIFORNIA AND ARIZONA 9306030125 930603 DIVIDEND NEWS AMVESTORS FINANCIAL CORP AMVESTORS FINANCIAL CORP OF TOPEKA KAN APPROVED A 1FOR25 REVERSE SPLIT OF ITS COMMON STOCK THE COMPANY WHICH MARKETS INDIVIDUAL ANNUITIES SET A JUNE 11 EFFECTIVE DATE FOR THE REVERSE STOCK SPLIT IN ADDITION CHAIRMAN RALPH W LASTER JR IN REMARKS DURING THE COMPANY'S ANNUAL MEETING SAID HE EXPECTS ASSETS TO INCREASE BY 10 AND ITS PREMIUMS BY 20 DURING 1993 FOR THE YEAR ENDED DEC 31 THE COMPANY'S ASSETS WERE 19 BILLION AND ITS PREMIUMS WERE 156 MILLION 9306030124 930603 BUSINESS BRIEF UMW UNION TO EXPAND ITS STRIKE TODAY TO LEADING COAL PRODUCER OTHER MINES THE UNITED MINE WORKERS UNION SAID IT WOULD EXPAND ITS FOURWEEKOLD SELECTIVE STRIKE TODAY TO THE NATION'S NO 1 COAL PRODUCER AS WELL AS SEVERAL MORE MINES OF AN ALREADYHIT PRODUCER THE UNION YESTERDAY SAID THE STRIKE WOULD NOW INCLUDE SELECTED MINES OWNED BY HANSON PLC'S PEABODY HOLDING CO THE NATION'S LARGEST PRODUCER AND ADDITIONAL OPERATIONS OF CONSOL ENERGY INC THE SECOND LARGEST US PRODUCER WHICH IS ALREADY A STRIKE TARGET THE EXPANSION ADDS 3000 MINERS TO THE STRIKE BRINGING THE TOTAL NUMBER OF STRIKERS TO MORE THAN 9200 IN PENNSYLVANIA WEST VIRGINA ILLINOIS AND FOR THE FIRST TIME OHIO I'M A LITTLE SURPRISED AT HOW QUICKLY THE UNION EXPANDED THE STRIKE SAID EMILY MEDINE A PITTSBURGHBASED ANALYST WITH ENERGY VENTURES ANALYSIS INC UNION PRESIDENT RICHARD TRUMKA MUST HAVE REALIZED HE'S NOT GETTING ENOUGH ATTENTION FROM HIS EFFORTS THUS FAR THE STRIKE HASN'T MADE A SIGNIFICANT DENT IN THE MARKET WITH UMW MINERS CONTROLLING ONLY 30 OF THE NATION'S COAL PRODUCTION BUT THE ADDED PRESSURE OF THE EXPANDED STRIKE COULD BEGIN TO AFFECT THE MARKET AND PRICES OVER TIME SAYS RALPH BARBARO ALSO OF ENERGY VENTURES THE UNION SAID IT IS STRIKING OVER THE LACK OF JOB SECURITY PROMISED TO UNION WORKERS BY PEABODY AND OTHER MEMBERS OF THE BITUMINOUS COAL OPERATORS ASSOCIATION IT ALSO CHARGES THE PRODUCERS WITH UNFAIR LABOR PRACTICES AND THE REFUSAL TO PROVIDE THE UNION WITH INFORMATION NEEDED FOR CONTRACT NEGOTIATIONS THE EXPANSION OF THE STRIKE CHANGES NOTHING THE BCOA SAID IN A STATEMENT THE FACT REMAINS THAT BCOA HAS MADE A FAIR JOBS PROPOSAL THAT EXPANDS JOB OPPORTUNITIES FOR UMWA MINERS BEYOND THAT WHICH THEY HAVE IN THE 1988 CONTRACT FURTHER BCOA HAS REITERATED ITS WILLINGNESS TO CONTINUE TO NEGOTIATE ON THE SPECIFICS OF THAT PROPOSAL SINCE THE STRIKE BEGAN THERE HAVE BEEN NO NEGOTIATIONS BETWEEN THE TWO SIDES THE UNION ALREADY STRUCK MINES OWNED BY ASHLAND COAL CO ZIEGLER COAL HOLDING CO AMAX INC ARCH MINERAL CORP ROCHESTER & PITTSBURGH COAL CO CLI CORP AND CONSOL WHICH IS OWNED BY GERMANY'S RHEINBRAUN AG AND DUPONT CO 9306030123 930603 WHO'S NEWS FLORIDA ROCK INDUSTRIES INC FLORIDA ROCK INDUSTRIES INC JACKSONVILLE FLA AR PETE CARPENTER WAS ELECTED TO THE BOARD OF THIS CONSTRUCTION MATERIALS COMPANY MR CARPENTER 51 YEARS OLD IS PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CSX TRANSPORTATION INC HIS ELECTION INCREASES THE SIZE OF THE BOARD TO 15 MEMBERS 9306030122 930603 WHO'S NEWS FEDERAL HOME LOAN MORTGAGE CORP FEDERAL HOME LOAN MORTGAGE CORP MCLEAN VA JOHN GIBBONS WAS NAMED ASSISTANT TO THE POST OF ACTING CHIEF FINANCIAL OFFICER AND JOHN FISK WAS NAMED SENIOR VICE PRESIDENT OF DEALER SERVICES AT THIS HOMEMORTGAGE PURCHASER FOR THE PAST TWO YEARS MR GIBBONS 42 YEARS OLD HAS BEEN HEAD OF RESEARCH AT FREDDIE MAC MR FISK 37 MOST RECENTLY WAS VICE PRESIDENT OF STRUCTURED FINANCE FEDERAL HOME LOAN MORTGAGE CORP NAMED JOHN GIBBONS ASSISTANT TO THE CHAIRMAN AND ACTING CHIEF FINANCIAL OFFICER AT ITEM YESTERDAY INCORRECTLY SAID HE WAS NAMED ASSISTANT TO THE POST OF ACTING CHIEF FINANCIAL OFFICER 9306030121 930603 WHO'S NEWS HJ HEINZ CO HJ HEINZ CO PITTSBURGH WALTER G SCHMID 49 YEARS OLD FORMERLY AREA DIRECTORAUSTRALASIA WAS NAMED TO THE NEWLY CREATED POST OF AREA DIRECTORASIA/PACIFIC OF THIS FOODPRODUCTS CONCERN MR SCHMID WILL BE RESPONSIBLE FOR HEINZ OPERATIONS AND AFFILIATES LOCATED IN ASIA AUSTRALIA AND NEW ZEALAND 9306030120 930603 WHO'S NEWS CASTLE & COOKE HOMES INC CASTLE & COOKE HOMES INC LOS ANGELES STEPHEN P WALLACE WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF THIS HOME BUILDING AND RESIDENTIAL DEVELOPMENT CONCERN MR WALLACE 38 YEARS OLD PREVIOUSLY WAS SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF AM HOMES 9306030119 930603 LIBERTE INVESTORS TO FILE BY LATE SUMMER A PREPACKAGED REORGANIZATION PLAN BY TARA PARKER POPE STAFF REPORTER OF THE WALL STREET JOURNAL DALLAS LIBERTE INVESTORS SAID IT PLANS TO FILE A PREPACKAGED CHAPTER 11 REORGANIZATION PLAN BY LATE SUMMER CAPPING NEARLY TWO YEARS OF TALKS WITH ITS SUBORDINATED DEBT HOLDERS THE PROPOSAL ANNOUNCED ONE DAY AFTER THE REAL ESTATE INVESTMENT TRUST FAILED TO MAKE A 100 MILLION PAYMENT ON ITS 10 1/2 SUBORDINATED NOTES CALLS FOR LIBERTE TO TRANSFER MOST OF ITS ASSETS AND ITS SECURED SENIOR DEBT TO A NEW CORPORATION THE DEAL IS CONTINGENT ON SECURITIES AND EXCHANGE COMMISSION APPROVAL OF A PROXY STATEMENT TO SOLICIT VOTES FOR THE PREPACKAGED PLAN FOLLOWING APPROVALS BY THE SEC SENIOR NOTE HOLDERS AND THE BANKRUPTCY COURT ALL OF THE COMMON STOCK OF THE NEW COMPANY WILL BE DISTRIBUTED TO THE SUBORDINATED NOTE HOLDERS TO SATISFY THAT DEBT LIBERTE WAS FORMERLY CALLED LOMAS & NETTLETON MORTGAGE INVESTORS ROBERT TED ENLOE III LIBERTE PRESIDENT AND CHIEF EXECUTIVE OFFICER SAID HE EXPECTS THE COMPANY TO FILE THE PREPACKAGED REORGANIZATION PLAN BY LATE SUMMER AND TO EMERGE FROM BANKRUPTCYLAW PROCEEDINGS BY EARLY FALL THEN WE'LL HAVE TWO COMPANIES MR ENLOE SAID THE BONDHOLDERS WILL OWN ONE AND THE LIBERTE SHAREHOLDERS WILL OWN THE OTHER IT WILL BE UP TO THE BOARD AND MANAGEMENT TO DECIDE WHAT LIBERTE DOES NEXT HE WOULDN'T DISCLOSE HOW MUCH OF ITS ASSETS LIBERTE WOULD RETAIN NOTING ONLY THAT THE COMPANY WOULD RETAIN JUST VERY MINOR DEBT AS OF MARCH 31 LIBERTE HAD GROSS ASSETS OF 300 MILLION AND ABOUT 204 MILLION IN DEBT SHELDON GRODSKY DIRECTOR OF RESEARCH FOR GRODSKY ASSOCIATES A NEW JERSEY BROKERAGE FIRM SAID IT IS UNCLEAR HOW SHAREHOLDERS WILL FARE UNDER THE PROPOSED PLAN THIS COULD BE GREAT NEWS FOR SHAREHOLDERS OR IT COULD BE DISASTER THE MISSING INFORMATION IS VERY IMPORTANT HE SAID THE TRUST SAID A STEERING COMMITTEE REPRESENTING HOLDERS OF THE 10 1/2 SUBORDINATED NOTES AND A SEPARATE COMMITTEE REPRESENTING SHAREHOLDERS AGREED ON THE PLAN THE PLAN IS SUBJECT TO SEVERAL CONDITIONS INCLUDING MODIFICATION OF LIBERTE'S SENIOR CREDIT AGREEMENTS LIBERTE HAS AN ESTIMATED 90 MILLION IN SENIOR DEBT WHICH WAS RESTRUCTURED IN JANUARY IF CREDITORS DON'T APPROVE THE AGREEMENT MR ENLOE SAID THE TRUST MAY BE FORCED TO FILE A NONCONSENSUAL CHAPTER 11 FILING FOR PROTECTION FROM CREDITORS 9306030118 930603 MICHAELS STORES' SALES RISE IRVING TEXAS MICHAELS STORES INC SAID SAMESTORE SALES INCREASED 1 IN MAY DAMPED BY A SEASONAL SLOWDOWN AND SLOW CONSUMER SPENDING THE ARTS AND CRAFTS RETAILER SAID TOTAL SALES FOR THE MONTH GAINED 19 TO 333 MILLION 9306030117 930603 WHO'S NEWS MAY DEPARTMENT STORES INC MAY DEPARTMENT STORES INC ST LOUIS JEROME T LOEB VICE CHAIRMAN AND CHIEF FINANCIAL OFFICER OF THIS DEPARTMENT STORE OPERATOR WAS NAMED PRESIDENT EFFECTIVE JUNE 14 MR LOEB 52 YEARS OLD WILL RETAIN HIS POST AS CHIEF FINANCIAL OFFICER AND REPORT TO DAVID C FARRELL CHAIRMAN AND CHIEF EXECUTIVE OFFICER AS PRESIDENT MR LOEB SUCCEEDS THOMAS A HAYS 60 WHO WAS NAMED TO THE NEWLY CREATED POST OF DEPUTY CHAIRMAN 9306030116 930603 WHO'S NEWS QUADRA LOGIC TECHNOLOGIES INC QUADRA LOGIC TECHNOLOGIES INC VANCOUVER BRITISH COLUMBIA RANDAL CHASE WAS APPOINTED TO THE NEWLY CREATED POSITION OF VICE PRESIDENT OPERATIONS AND CHIEF OPERATING OFFICER OF THIS PHARMACEUTICALS COMPANY DR CHASE A 44YEAROLD BIOCHEMIST FORMERLY WAS SENIOR VICE PRESIDENT TECHNICAL OPERATIONS AT GLAXO CANADA INC A SUBSIDIARY OF BRITAIN'S GLAXO HOLDINGS PLC 9306030115 930603 WHO'S NEWS LOGICON INC LOGICON INC LOS ANGELES CHARLES T HORNGREN AND CHARLES F SMITH WERE ELECTED DIRECTORS INCREASING THE BOARD TO 10 DR HORNGREN 66 YEARS OLD IS THE EDMUND W LITTLEFIELD PROFESSOR OF ACCOUNTING AT STANFORD UNIVERSITY MR SMITH 60 IS PRESIDENT OF CHARLES F SMITH & CO LOGICON PROVIDES ADVANCED TECHNOLOGY SYSTEMS AND SERVICES TO SUPPORT NATIONAL SECURITY CIVIL AND INDUSTRIAL NEEDS 9306030114 930603 WHO'S NEWS NEWS CORP NEWS CORP SYDNEY AUSTRALIA ANNE SWEENEY WAS NAMED CHAIRMAN AND CHIEF EXECUTIVE OFFICER NEWLY CREATED POSTS OF FOX BASIC CABLE WHICH WILL LAUNCH FOX INC'S BASIC CABLE PROGRAMMING BY EARLY NEXT YEAR FOX IS THE BROADCASTING SUBSIDIARY OF NEWS CORP MS SWEENEY 35 YEARS OLD WAS PREVIOUSLY SENIOR VICE PRESIDENT OF PROGRAM ENTERPRISES FOR NICKELODEON/NICK AT NITE A CABLE PROGRAMMING UNIT OF VIACOM INC AT FOX SHE WILL REPORT DIRECTLY TO RUPERT MURDOCH CHAIRMAN AND CHIEF EXECUTIVE OF NEWS CORP AND FOX INC LARRY JONES 42 WILL CONTINUE AS FOX BASIC CABLE'S PRESIDENT AND CHIEF OPERATING OFFICER 9306030113 930603 WHO'S NEWS LECTEC CORP LECTEC CORP MINNETONKA MINN THOMAS E BRUNELLE A 58YEAROLD SENIOR VICE PRESIDENT WAS NAMED CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER EFFECTIVE JULY 1 THE MAKER OF MEDICAL PRODUCTS SAID AS CHAIRMAN HE SUCCEEDS LEE M BERLIN 71 WHO IS RETIRING AND AS PRESIDENT AND CHIEF EXECUTIVE HE SUCCEEDS GEORGE B INGEBRAND 65 WHO WAS NAMED TO THE NEW POST OF VICE CHAIRMAN 9306030112 930603 MARKETING & MEDIA TIME WARNER UNIT'S NEW STUDIO NEW YORK WARNER NEW MEDIA A UNIT OF TIME WARNER INC SAID IT WILL SET UP A DIGITAL PRODUCTION STUDIO AND ALSO CHANGE ITS NAME TO TIME WARNER INTERACTIVE GROUP THE STUDIO AT THE UNIT'S BURBANK CALIF HEADQUARTERS WILL ALLOW THE COMPANY TO DEVELOP INTERACTIVE CDROM PRODUCTS AND OTHER PRODUCTS CAPABLE OF BEING DELIVERED THROUGH CABLE TELEVISION THE NAME CHANGE REFLECTS A BROADER PRODUCT MIX AND EXPECTED EXPANSION TO INCLUDE PRODUCTS FOR TIME WARNER'S FULL SERVICE NETWORK TO BE LAUNCHED IN ORLANDO FLA IN 1994 IN THE PAST THE UNIT HAS DEVELOPED PRODUCTS MAINLY FOR THE CDROM MARKET 9306030111 930603 INTERNATIONAL SOROS DEVELOPS FUND TO INVEST IN UK PROPERTY FINANCIER FORMS ALLIANCE WITH BRITISH LAND CO REAL ESTATE STOCKS SOAR BY MITCHELL PACELLE STAFF REPORTER OF THE WALL STREET JOURNAL FOUR MONTHS AFTER SETTING UP A 525 MILLION REAL ESTATE FUND IN THE US FINANCIER GEORGE SOROS IS FORMING AN EVEN BIGGER FUND TO INVEST IN BRITISH PROPERTY QUANTUM FUND WHICH MR SOROS MANAGES HAS JOINED FORCES WITH BRITISH LAND CO PLC A LONDONBASED REAL ESTATE OWNER AND DEVELOPER TO INVEST AS MUCH AS 500 MILLION 7743 MILLION IN PROPERTY THE BRITISH COMPANY SAID BRITISH INVESTORS INTERPRETED THE MOVE BY MR SOROS A GLOBAL INVESTOR WHO MANAGES MORE THAN 7 BILLION IN INVESTMENTS AS EVIDENCE THAT THE BRITISH REAL ESTATE MARKET HAS BOTTOMED OUT BRITISH REAL ESTATE STOCKS JUMPED ON THE NEWS WITH BRITISH LAND UP 46 PENCE TO 344 PENCE A SHARE AND THE REST OF THE SECTOR FOLLOWING THE BOTTOM FELL OUT OF BRITISH COMMERCIAL REAL ESTATE IN THE LATE 1980S WITH PRICES OF SOME PROPERTIES DROPPING MORE THAN 40 RECENTLY HOWEVER THERE HAS BEEN A FLURRY OF BUYING ACTIVITY IN THE CENTRAL LONDON MARKET DRIVEN BY GERMAN INVESTORS ACCORDING TO NICHOLAS RENNY A MANAGING DIRECTOR AT THE AMERICAN ARM OF CHESTERTON INTERNATIONAL A LONDONBASED REAL ESTATE COMPANY THIS OUGHT TO GIVE A GOOD BOOST TO THE EUROPEAN REAL ESTATE MARKET SAID PAUL PARISER MANAGING DIRECTOR OF THE US ARM OF JONES LANG WOOTTON ANOTHER LONDONBASED REAL ESTATE COMPANY WHEN SOROS MAKES A MOVE LIKE THAT A LOT OF THE MARKET MOVES WITH HIM MR SOROS ATTRACTED WIDE NOTICE IN EUROPE LAST YEAR WITH AGGRESSIVE CURRENCY TRADING THAT PITTED HIM AGAINST EUROPEAN CENTRAL BANKS THAT TRADING ULTIMATELY PRODUCED MORE THAN 1 BILLION IN PROFITS FOR MR SOROS'S FUNDS BRITISH LAND SAID THAT IT AND THE QUANTUM FUND A 4 BILLION OFFSHORE MUTUAL FUND WOULD EACH CONTRIBUTE AS MUCH AS 250 MILLION QUANTUM FUND IS INCORPORATED IN THE NETHERLANDS ANTILLES AND ISN'T OPEN TO INVESTORS WHO ARE US RESIDENTS BRITISH LAND WILL RAISE SOME OF THE MONEY THROUGH A RIGHTS ISSUE FOR 132 MILLION AND THE SALE TO QUANTUM OF 113 MILLION NEW BRITISH LAND SHARES IT IS UNCLEAR WHETHER QUANTUM WOULD USE EXISTING FUNDS FOR THE NEW VENTURE OR SEEK TO ATTRACT NEW SHAREHOLDERS THE ADDITIONAL FIRE POWER JUST ANNOUNCED WILL HAVE A SIGNIFICANT EFFECT ON THE COMPANY'S ABILITY TO REMAIN IN THE FOREFRONT OF THE PROPERTY BUSINESS SAID JOHN RITBLAT CHAIRMAN OF BRITISH LAND MR SOROS DECLINED TO COMMENT ON THE NEW VENTURE WHICH WILL BE CALLED THE BRITISH LAND QUANTUM PROPERTY PARTNERSHIP THE MOVE IS SEEN BY US REAL ESTATE EXPERTS AS PARALLEL TO THE FORMATION IN APRIL OF A 525 MILLION REAL ESTATE FUND MR SOROS FORMED IN PARTNERSHIP WITH PAUL REICHMANN A ONETIME CONTROLLING SHAREHOLDER OF THE OLYMPIA & YORK PROPERTY EMPIRE MR REICHMANN WHOSE COMPANY WAS DRIVEN INTO BANKRUPTCY IN PART BY THE HUGE CANARY WHARF DEVELOPMENT IN LONDON ISN'T INVOLVED IN THE NEW FUND 9306030110 930603 ANNTAYLOR'S MAY SALES CLIMBED NEW YORK ANNTAYLOR STORES CORP SAID MAY SALES ROSE 135 TO 434 MILLION FROM 383 MILLION A YEAR EARLIER SALES OF STORES OPEN AT LEAST A YEAR CLIMBED 103 IN THE FIRST FOUR MONTHS OF FISCAL 1994 SALES INCREASED 69 TO 1636 MILLION FROM 153 MILLION A YEAR EARLIER SALES AT STORES OPEN AT LEAST A YEAR ROSE 32 9306030109 930603 INTERNATIONAL SOUTH KOREAN AUTO EXPORTS SEOUL SOUTH KOREA SOUTH KOREA'S AUTOMOBILE EXPORTS TOTALED 41587 VEHICLES IN MAY UP 22 FROM 33987 THE YEAR BEFORE THE KOREA AUTOMOBILE INDUSTRY ASSOCIATION SAID THE ASSOCIATION SAID THE RISE WAS DUE TO A RECOVERY OF PRICE COMPETITIVENESS BY SOUTH KOREAN AUTOS RESULTING FROM A STRONGER JAPANESE CURRENCY THE ASSOCIATION ALSO NOTED THAT EXPORTS WOULD HAVE FARED BETTER IF NOT FOR A 10DAY LABOR DISPUTE AT A PARTS SUPPLIER THE DISPUTE FORCED THE NATION'S LARGEST AUTO MAKER HYUNDAI MOTOR CO TO HALT ITS WHOLE OPERATION DURING THE PERIOD 9306030108 930603 CHRYSLER TO BUILD NEW FACILITY HIGHLAND PARK MICH CHRYSLER CORP SAID IT'S BUILDING A 20 MILLION PARTS DISTRIBUTION AND TRAINING CENTER THAT WILL OPEN NEXT SPRING IN NAPERVILLE ILL CHRYSLER SAID ITS NEW MOPAR PARTS DIVISION FACILITY WILL ALLOW THE AUTO MAKER TO SHIP PARTS MORE QUICKLY TO 350 OF ITS DEALERS IN ILLINOIS INDIANA IOWA AND WISCONSIN THE FACILITY ALSO WILL CONDUCT DAILY CLASSES FOR CHRYSLER DEALER TECHNICIANS TO KEEP THEM UPDATED ON THE LATEST TECHNOLOGY 9306030107 930603 POLITICS & POLICY HEALTHCARE FUND FIGHT ERUPTS OVER STATES' USE OF THE FEDERAL DISPROPORTIONATE SHARE' CLAUSE BY GEORGE ANDERS STAFF REPORTER OF THE WALL STREET JOURNAL AMID EFFORTS TO OVERHAUL THE ENTIRE US HEALTHCARE SYSTEM A BATTLE HAS BROKEN OUT OVER STATES' ABILITY TO TAP A FAVORITE PART OF MEDICAID FOR BILLIONS OF DOLLARS OF FEDERAL REIMBURSEMENTS THE MEDICAID DISPUTE CENTERS ON AN OBSCURE FEDERAL PROVISION MEANT TO HELP HOSPITALS THAT SERVE A DISPROPORTIONATE SHARE OF POOR PEOPLE BUT HEALTHCARE FINANCING SPECIALISTS SEE WIDER IMPLICATIONS TO THE DISPUTE IT SERVES AS A VIVID REMINDER THAT SMALL HEALTHCARE PROGRAMS CAN CONSUME FAR MORE CASH THAN EXPECTED THEY SAY AND THAT UNINTENDED BENEFICIARIES OF THESE PROGRAMS WILL FIGHT HARD TO KEEP THEIR MONEY ALREADY MORE THAN 30 STATES LED BY LOUISIANA CALIFORNIA AND MICHIGAN ARE TAPPING THE DISPROPORTIONATE SHARE SYSTEM FOR MORE THAN 9 BILLION A YEAR OF FEDERAL CASH THAT'S MORE THAN 40 TIMES THE LEVEL OF DISBURSEMENTS EXPECTED WHEN THE PROVISIONS WERE IMPLEMENTED IN THE MID1980S IT'S AMONG THE REASONS WHY MEDICAID SPENDING GREW 29 LAST YEAR MAKING MEDICAID ONE OF THE FASTESTEXPANDING FEDERAL PROGRAMS UNDER THE MOST CREATIVE FINANCING SCHEMES STATES AREN'T NECESSARILY SPENDING THE FEDERAL REIMBURSEMENTS AT THE TARGETED HOSPITALS OR ON BENEFICIARIES OF MEDICAID A JOINT FEDERAL/STATE PROGRAM OF HEALTH CARE FOR LOWINCOME PEOPLE INSTEAD SOME OF THE MONEY IS BEING ROUTED INTO STATES' GENERAL BUDGETS WHERE IT CAN PAY FOR PSYCHIATRIC CARE SCHOOLS PRISONS OR OTHER PROGRAMS THIS IS A GIMMICK CONTENDS RICHARD KUSSEROW A FORMER INSPECTOR GENERAL FOR THE DEPARTMENT OF HEALTH AND HUMAN SERVICES IT'S A WAY IN WHICH STATE GOVERNMENTS ARE SUBSIDIZING THEIR DEFICITS THE CONSEQUENCE HE SAYS IS A GARGANTUAN RATE OF INFLATION FOR MEDICAID SPENDING WHEN THE MONEY ISN'T GOING TO MEDICAID CONGRESS IS TRYING ONCE AGAIN TO LIMIT SUCH DIVERSIONS OF MEDICAID MONEY IN 1991 IT CURTAILED TWO COMMON STATE MANEUVERS IN WHICH STATES COLLECTED MATCHING FEDERAL MONEY BY TAPPING PRIVATE HOSPITALS FOR SPECIAL TAXES OR DONATIONS WHICH LATER WERE REIMBURSED TO THE HOSPITALS ONCE THE FEDERAL CASH ARRIVED BUT CONGRESS'S ACTION IN 1991 LEFT A THIRD FINANCING SCHEME INTACT IN THIS SYSTEM STATES DESIGNATE CERTAIN STATEOWNED HOSPITALS AS SERVING A DISPROPORTIONATE SHARE OF POOR PEOPLE STATES IN SOME CASES THEN BRIEFLY TRANSFER CASH FROM THESE HOSPITALS TO THE GENERAL STATE BUDGET AT THAT POINT STATES APPLY FOR MATCHING FEDERAL MEDICAID MONEY WHICH CAN EQUAL 100 TO 300 OF THE STATE AMOUNT ONCE THE FEDERAL MONEY ARRIVES STATES TRANSFER BACK THE ORIGINAL STATE FUNDS TO THE STATE HOSPITALS IN QUESTION THAT MANEUVER LEAVES THE FEDERAL MONEY AVAILABLE FOR USE AS STATES SEE FIT THIS SPRING THE HOUSE ENERGY AND COMMERCE COMMITTEE VOTED TO RESTRICT SUCH FEDERAL PAYMENTS AS OF NEXT YEAR USE OF FEDERAL MEDICAID FUNDS FOR UNRELATED PURPOSES SUCH AS BUILDING ROADS OPERATING CORRECTIONAL FACILITIES OR BALANCING STATE BUDGETS IS A CLEAR ABUSE OF THE PROGRAM THE COMMITTEE SAID THE DEFICITREDUCTION BILL IMPLEMENTING MR CLINTON'S ECONOMIC PROGRAM WHICH NARROWLY PASSED THE HOUSE LAST WEEK AIMS TO SAVE 23 BILLION OVER THE NEXT FIVE YEARS BY CURBING ABUSE OF THE PROVISION THE MEASURE WOULD PROHIBIT STATES FROM DESIGNATING HOSPITALS AS DISPROPORTIONATE SHARE FACILITIES UNLESS MEDICAID PATIENTS ACCOUNT FOR AT LEAST 1 OF ITS INPATIENT DAYS THE MEASURE ALSO LIMITS REIMBURSEMENTS TO THE COSTS OF TREATING MEDICAIDELIGIBLE AND UNINSURED PATIENTS MINUS ANY OTHER PAYMENTS THE HOSPITALS RECEIVE FROM MEDICAID AND FROM THE UNINSURED FORMER OFFICE OF MANAGEMENT AND BUDGET OFFICIAL THOMAS SCULLY WHO GRAPPLED WITH THE ISSUE DURING THE BUSH ADMINISTRATION COMPLAINS THAT DESPITE THESE REFORMS THE DISPROPORTIONATE SHARE LOOPHOLE IS NOT EVEN REMOTELY CLOSE TO BEING CLOSED BUT IT'S A MEASURE OF HOW MUCH STATES HAVE COME TO DEPEND ON THE LOOPHOLE AND THE POLITICAL HEAT THEY'VE GENERATED TO PRESERVE IT THAT HOUSE DEMOCRATS EXPRESS SATISFACTION THAT THEY WERE ABLE TO NARROW IT AS MUCH AS THEY DID THE RESTRICTIONS ARE EXPECTED TO PASS IN THE SENATE FOR NOW HOWEVER STATES ARE MAKING THE MOST OF THEIR MEDICAID OPPORTUNITIES MICHIGAN FOR EXAMPLE IS DUE TO COLLECT 274 MILLION THIS FALL IN MATCHING FEDERAL MONEY OSTENSIBLY TIED TO DISPROPORTIONATE SHARE CLAIMS BY STATEOWNED UNIVERSITY OF MICHIGAN HOSPITAL IN ANN ARBOR THAT HOSPITAL WON'T GET ANY OF THE MONEY THOUGH INSTEAD IT WILL BE USED ELSEWHERE IN THE STATE'S MEDICAID PROGRAM THE MICHIGAN BUDGET SPECIALIST WHO DEVISED THIS MANEUVER PAUL REINHART SAYS HE WAS READING FEDERAL LEGISLATION LAST SUMMER WHEN HE SPOTTED A WAY TO MAKE THE MANEUVER WORK I SAID MR REINHART RECALLS HE ADDS THAT MICHIGAN HAS HAD EXTENSIVE TALKS WITH THE FEDERAL AGENCY THAT RUNS MEDICAID THE HEALTH CARE FINANCING ADMINISTRATION AND THAT ALL PARTIES AGREE THAT THE MANEUVER IS ALLOWABLE OTHER STATES HAVE GONE SO FAR AS TO MAKE MINOR HEROES OF LOCAL BUREAUCRATS WHO FIGURE OUT WAYS TO TAP MEDICAID'S TILL MASSACHUSETTS GOV WILLIAM WELD IN 1991 ARRANGED FOR A 10000 REWARD TO GO TO A PARTTIME STATE WORKER WHO FOUND A WAY TO COLLECT AN EXTRA 46 MILLION IN FEDERAL MEDICAID REIMBURSEMENTS AS SUCH MANEUVERS CATCH ON STATES ARE PAYING A SHRINKING SHARE OF THE OVERALL MEDICAID BILL AND SWITCHING MORE OF THE COSTS TO WASHINGTON MICHIGAN FOR EXAMPLE PAID 43 OF THE COSTS OF ITS MEDICAID PROGRAM AS RECENTLY AS 1988 WITH THE NEW TACTICS THOUGH MICHIGAN MAY CUT ITS SHARE IN THE COMING FISCAL YEAR TO 30 SOME STATES SUCH AS LOUISIANA AND CALIFORNIA ARE KEEPING FEDERAL REIMBURSEMENTS WITHIN THEIR OVERALL STATE HEALTHCARE SYSTEMS IT ALLOWS US TO DO THINGS IN HEALTH CARE THAT OTHERWISE WE COULDN'T SAYS GARY WELLS EXECUTIVE DIRECTOR OF LOS ANGELES COUNTY HOSPITAL WHICH IS SEEKING 133 MILLION IN FEDERAL MONEY OTHER STATES HOWEVER ARE MORE AUDACIOUS NORTH CAROLINA IS COLLECTING 200 MILLION IN MATCHING FEDERAL MONEY TIED TO CLAIMS ON BEHALF OF FOUR STATEOWNED MENTAL HEALTH HOSPITALS THOSE HOSPITALS AREN'T KEEPING THE FEDERAL CASH INSTEAD IT IS BEING SET ASIDE FOR THE STATE'S GENERAL FUND WHERE IT CAN BE USED FOR SCHOOLS LIBRARIES AND THE LIKE I'M DEAD SET AGAINST THIS PROCESS SAYS DAVID BALMER A REPUBLICAN STATE SENATOR IN NORTH CAROLINA IT'S A SLAP IN THE FACE OF ALL THE PEOPLE WHO ARE IN DIRE NEED OF MENTAL HEALTH FACILITIES BUT HE SAYS HIS OBJECTIONS SO FAR HAVEN'T PREVAILED LAST MONTH REP JOHN DINGELL D MICH ASKED THE GENERAL ACCOUNTING OFFICE TO EXAMINE STATE MANEUVERS TO GET DISPROPORTIONATE SHARE REIMBURSEMENTS UNDER THE MEDICAID SYSTEM IN A REPORT THIS YEAR THE GAO RAISED QUESTIONS ABOUT THE WAY THAT TEXAS OBTAINS SUCH REIMBURSEMENTS THE GAO SAID TEXAS'S SYSTEM APPEARS BIASED IN FAVOR OF STATEOWNED HOSPITALS AT THE EXPENSE OF PRIVATE HOSPITALS WITH THE CLINTON ADMINISTRATION LOOKING TO MAKE WHOLESALE CHANGES IN HEALTHCARE FOR POOR PEOPLE PERHAPS EVEN FOLDING MEDICAID INTO MAINSTREAM COVERAGE IT'S UNCLEAR HOW THE ISSUE OF MEDICAID DIVERSIONS WILL ULTIMATELY PLAY OUT BUT SOME HEALTHCARE SPECIALISTS THINK THE CONTROVERSY OVER HOW FEDERAL MONEY IS USED COULD IMPAIR ANY OTHER EFFORTS TO SET UP PROGRAMS IN WHICH MATCHING FEDERAL MONEY SUPPLEMENTS STATE SPENDING I REALLY LIKE MATCHING GRANTS AS A WAY OF ENCOURAGING TARGETED SPENDING SAYS GAIL WILENSKY A FORMER HCFA ADMINISTRATOR BUT THIS HAS THE POTENTIAL TO BLOW UP ALL MATCHING GRANTS 9306030106 930603 NO CHICKENS OR GEESE FOR THIS FARM HERE BIRDS HAVE CHARACTER EMUS PIG OUT AT DINNER BEAT THEIR MATES AND SLEEP LATE A GREEN EGG FEEDS THREE BY ALECIA SWASY STAFF REPORTER OF THE WALL STREET JOURNAL LITITZ PA FARMER PAUL ZIMMERMAN LEADS A DOZEN SCHOOLCHILDREN PAST HIS HOLSTEIN CALVES AND SURLY RED ROOSTER INSTEAD HIS TOUR BEGINS WITH A GREEN EGG EGGS CAN'T BE GREEN SNEERS DANIEL A PRESCHOOLER SO MR ZIMMERMAN SHOWS HIM WHAT IS HATCHING IN A PATCH OF TALL GRASS A FUZZY CHICK THAT RESEMBLES A BROWN WATERMELON RUNS FOR COVER THAT'S DEFINITELY MORE INTERESTING THAN THOSE COWS SAYS ONE MOM ON THE TOUR TIMES ARE TOUGH FOR BOSSY ON THIS FARM SHE HAS BEEN UPSTAGED BY EMUS AND THE BARNYARD WILL NEVER BE THE SAME THE ZIMMERMANS DROPPED HOLSTEINS FROM THE FARM NAME HAMMERCREEK EXOTICS IS NOW STAMPED ON THEIR NEW BUSINESS CARDS MR ZIMMERMAN SCOURS OSTRICH NEWS WHILE HOARD'S DAIRYMAN A BIBLE AMONG FARMERS COLLECTS DUST I DON'T EVEN WATCH MILK PRICES ANYMORE HE SAYS ALL OF THIS RUFFLES SOME FEATHERS HERE IN AMISH FARM COUNTRY EVEN HIS FATHER A RETIRED FARMER QUESTIONED HIS SON'S JUDGMENT WHEN HE DECIDED TO RAISE EMUS AND OTHER EXOTIC ANIMALS HE THOUGHT I WAS BEING LESS THAN A GOOD DAIRY FARMER THE YOUNGER MR ZIMMERMAN SAYS BUT I MADE MORE MONEY ON EMUS THAN ALL THOSE COWS WHEN OTHER FARMERS ENDURED THE JANUARY SNOW THE MENNONITE FARMER TOOK HIS WIFE BRENDA TO CANCUN MEXICO THE EMU PRONOUNCED EEMEW AN AUSTRALIAN COUSIN OF THE OSTRICH IS BECOMING A HOT SELLER THESE DAYS STATE AGRICULTURAL OFFICIALS SAY ITS MEAT WHICH TASTES LIKE BEEF BUT HAS ONETHIRD THE CHOLESTEROL FETCHES 20 A POUND EVEN THE PENNSYLVANIA FARM SHOW INVITED A CHEF TO TEACH FARM WIVES HOW TO PREPARE EMU STIRFRY A VERY FLAVORFUL BIRD SAYS CHEF TIMOTHY BROWN WHO PREPARED THE VICTUALS EMU OIL USED IN BEAUTY PRODUCTS IS EVEN MORE EXPENSIVE A TWOOUNCE BOTTLE OF PURE EMU OIL SELLS FOR ABOUT 24 SO FARMERS WHO HAVE ENDURED WEAK MILK AND CROP PRICES ARE FLOCKING TO THE BIRD THE 3000MEMBER AMERICAN EMU ASSOCIATION IN DALLAS SAYS MEMBERSHIP IS TRIPLE WHAT IT WAS A YEAR AGO WHILE PRICES FOR EMUS HAVE DOUBLED A PAIR OF BREEDINGAGE EMUS SELLS FOR AT LEAST 30000 THOSE CHICKS RUNNING THROUGH MR ZIMMERMAN'S YARD ARE WORTH UP TO 5000 EACH COMPARED TO THE 100 TO 200 HE GETS FOR A HOLSTEIN CALF THERE ARE OTHER ADVANTAGES TO RAISING EMUS FOR STARTERS THEY SLEEP IN MILKING TIME FOR THE COWS IS 4 AM BUT THE EMUS DON'T EAT UNTIL 9 AM AND YOU DON'T HAVE TO MILK THEM TWICE A DAY MR ZIMMERMAN SAYS EMUS HAVE DOUBLED HIS ANNUAL INCOME SO HE HIRED TWO EMPLOYEES TO HELP WITH THE COWS NOT THAT RAISING EMUS WHICH CAN GROW TO SIX FEET AND 150 POUNDS IS EFFORTLESS THEY CAN BE PICKY EATERS WHEN MR ZIMMERMAN STARTED RAISING THEM A FEW YEARS AGO HE EXPERIMENTED WITH ALL SORTS OF FEED FROM DOG FOOD TO LETTUCE HE HAS COME UP WITH HIS OWN SECRET RECIPE WHICH CONTAINS SOME ALFALFA AND CORN AMONG OTHER INGREDIENTS OTHER FARMERS NOW ORDER FEED FROM HIM ONCE EMUS START EATING IT CAN BE DIFFICULT TO GET THEM TO STOP THEY TEND TO PIG OUT ESPECIALLY AS CHICKS IT IS ALL RIGHT IF BOSSY LOUNGES IN HER STALL ALL DAY CHEWING HER CUD BUT IF A CHICK IS TOO CHUBBY ITS SPINDLY LEGS CAN SPLAY AND THE BIRD CAN DIE BECAUSE IT CAN'T GET UP TO EAT MR ZIMMERMAN WRAPS NEWBORNS' LEGS WITH TAPE FOR SUPPORT AND PUTS THEM IN A FENCED AREA WHERE THEY CAN RUN AND STAY TRIM AT ABOUT AGE TWO EMUS RESEMBLE LARGE FEATHER DUSTERS WITH LEGS AND THEY BEGIN TO MATE THE FEMALE EMU CAN BE RATHER AGGRESSIVE AND SHE IS FUSSY ABOUT WHO SIRES HER OFFSPRING IF SHE DOESN'T LIKE HIM YOU'VE GOT PROBLEMS MR ZIMMERMAN SAYS SHE WILL KICK HISS AND PECK AT THE MALE WHO DOESN'T FIGHT BACK SOMETIMES THE FARMER WILL PAIR HER WITH A NEW MATE OTHER TIMES THE FAMILY FEUD CAN BE SETTLED AFTER A BRIEF SEPARATION AFTER A HEN PICKS A MATE SHE CAN LAY UP TO 50 EGGS EACH WINTER AND KEEP PRODUCING FOR 20 YEARS OR MORE MR ZIMMERMAN HAS TO MONITOR THE NEST TAKING EACH EGG IN THE HOUSE SO IT WON'T FREEZE HATCHING EMUS IS TRICKY THE WHITESHELLED EGGS OF CHICKENS AND EVEN OSTRICHES CAN BE CANDLED THE PROCESS OF SHINING A LIGHT THROUGH THE EGG TO SEE IF THERE'S A CHICK INSIDE THE EMU EGG WHICH RESEMBLES A PLUMP AVOCADO IS TOO DARK SO MR ZIMMERMAN HAS MASTERED THE ART OF EGG WATCHING TWO WEEKS BEFORE THE END OF THE 52DAY INCUBATION PERIOD HE LAYS THE EGG ON A TABLE IF IT WOBBLES IT'S A LITTLE EMU IF IT DOESN'T IT'S AN OMELET ONE EMU EGG WAS BIG ENOUGH TO FEED THEIR THREE KIDS FOR THREE MORNINGS GIVEN THE DEMAND FOR EMUS MR ZIMMERMAN HAS ALSO LEARNED ABOUT HIGHTECH SECURITY AROUND HERE NOBODY BOTHERS COWS SO MOST PEOPLE DON'T LOCK THEIR BARN DOORS BUT EMU RUSTLING IS A PROBLEM TO GUARD AGAINST THEFT MR ZIMMERMAN BOUGHT MICROCHIPS THAT ARE EMBEDDED UNDER THE EMUS' SKIN A SCANNER THAT RESEMBLES A PROP FROM STAR TREK PICKS UP A 10DIGIT NUMBER FROM THE CHIP IF ANYONE TRIES TO SELL HIS EMUS THE BIRDS CAN BE TRACED BACK TO HIS FARM HIS INSURANCE COMPANY ALSO WORRIES ABOUT THE INCREASED LIABILITY OF ALL THESE TOURISTS BUT IT IS HARD TO KEEP GAWKERS AWAY FROM HIS MENAGERIE THE PAIR OF 300POUND OSTRICHES STANDING AT THE FENCE TENDS TO ATTRACT TOURISTS WHO DRIVE AROUND EXPECTING TO SEE AMISH FOLKS IN THEIR HORSEDRAWN BUGGIES IT'S STRANGE SAYS JANICE FITCH WHO HAS BROUGHT HER SON BRIAN FOR A VISIT YOU DON'T EXPECT TO SEE THESE KINDS OF ANIMALS THE ZIMMERMANS HAVE LOST COUNT OF HOW MANY CRITTERS ROAM THEIR 85ACRE FARM THEY BUILT AN ARK FOR LOCAL PARADES AND MR ZIMMERMAN DRESSES LIKE NOAH A CAMEL NAMED ROWDY IS A FAVORITE FOR CHRISTMAS NATIVITY SCENES THE LLAMAS MAKE APPEARANCES AT NURSING HOMES AND SCHOOLS A CAPYBARA THE WORLD'S LARGEST RODENT IS SOMEWHERE IN THE BARN MRS ZIMMERMAN RAISES THE EMU CHICKS IN THE BASEMENT AND AFRICAN PYGMY HEDGEHOGS IN THE SUN ROOM ONE GAVE BIRTH UNDER HER WASHER MRS ZIMMERMAN DOES HAVE HER LIMITS NO SNAKES IN THE HOUSE AND SHE IS GETTING RID OF ANOTHER FARM STAPLE THE CHICKENS THEY DIG UP THE FLOWERS SHE SAYS TWO GEESE ARE ALREADY GONE THEY WERE TOO NOISY SOME VISITORS TO THE FARM ARE EAGER TO LEARN HOW THEY CAN BECOME EXOTIC FARMERS TOO FUTURE FARMERS OF AMERICA A RURAL CLUB STOPS BY FOR MR ZIMMERMAN'S LECTURE ON THE IMPORTANCE OF DIVERSIFICATION CONSIDER THE POTBELLIED PIG HE PURCHASED FOR 5000 HE SOLD THE LITTER OF PIGLETS FOR 2250 EACH NOW THEY SELL FOR AS LOW AS 75 HE RECOMMENDS HEDGEHOGS AS A GOOD HEDGE AGAINST PRICE FLUCTUATIONS THEY HAVE REMAINED STEADY AT 300 A PAIR EVEN HIS SUSPICIOUS FATHER ALSO NAMED PAUL ZIMMERMAN HAS WARMED TO THE IDEA THE SHINY NEW 10000 PLOW THAT HIS SON BOUGHT WITH THE EMU PROFITS HELPED GET HIS ATTENTION NOW THE ELDER ZIMMERMAN HAS JOINED OTHER INVESTORS WHO HAVE BOUGHT A STAKE IN THE EXPANDING EMU BUSINESS THE PHONE IN THE KITCHEN RINGS ALL DAY NEW BUYERS LOOKING FOR EMU CHICKS I'VE STOPPED TAKING NAMES FOR THE WAITING LIST MR ZIMMERMAN SAYS BETWEEN CALLS HE SCANS THE OSTRICH NEWS AND OTHER ANIMAL PUBLICATIONS LOOKING FOR SOMETHING NEW TIGERS ARE NEAT HE SAYS BUT BRENDA DOESN'T LIKE ANYTHING THAT EATS PEOPLE 9306030105 930603 MARKETING & MEDIA MARKETSCAN BRANDS HELP MAKE COLD SALADS HOT SELLERS BY KATHLEEN DEVENY AMERICANS ARE MORE THAN HAPPY TO EAT THEIR VEGETABLES SO LONG AS THEY DON'T HAVE TO WASH THEM AND CUT THEM UP THE QUEST FOR HEALTHFUL FARE THAT DOESN'T REQUIRE MUCH MORE EFFORT THAN UNWRAPPING A FASTFOOD BURGER HAS HELPED TURN PREPARED REFRIGERATED SALADS INTO THE FASTESTGROWING CATEGORY IN THE SUPERMARKET SALES OF THE PREWASHED GREENS SOARED 76 TO 529 MILLION DURING THE 13 WEEKS ENDED MARCH 28 ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE THE RAPID RISE OF THE LEAFY FIXINGS IS ESPECIALLY DRAMATIC CONSIDERING THE PRODUCE CASE REPRESENTS A FINAL FRONTIER FOR MARKETERS OF NATIONAL FOOD BRANDS SETTING THE CRISP PACE THE FRESH EXPRESS BRAND FROM A UNIT OF FRESH INTERNATIONAL INC IN SALINAS CALIF SUPERMARKET SALES OF FRESH EXPRESS WHICH HAS BEEN IN NATIONAL DISTRIBUTION FOR LESS THAN A YEAR NEARLY TRIPLED TO 166 MILLION SALES OF DOLE FOOD CO'S PREPARED SALADS THE CATEGORY'S SECONDLARGEST BRAND INCREASED 64 TO 78 MILLION SALES OF PRIVATELABEL SALADSINABAG MEANWHILE GREW 16 IT'S NOT AS IF THIS IS SUCH A BRILLIANT IDEA SAYS STEVE TAYLOR PRESIDENT OF FRESH INTERNATIONAL WHOSE PRODUCTS INCLUDE EUROPEAN SALAD OF ROMAINE ENDIVE AND ESCAROLE AND CAESAR SALAD COMPLETE WITH CROUTONS AVERAGE PRICE 129 TO 199 A POUND DEMAND HAS BEEN THERE FOR A LONG TIME HE ADDS BUT PACKAGING TECHNOLOGY HAS FINALLY CAUGHT UP THE HEALTHY GROWTH HASN'T ESCAPED THE ATTENTION OF OTHER FOOD MARKETERS TO HELP COUNTER LACKLUSTER SALES OF CANNED AND FROZEN VEGETABLES GRAND METROPOLITAN PLC'S PILLSBURY UNIT IS CONSIDERING SELLING FRESH VEGETABLES AND FRUITS UNDER ITS GREEN GIANT LABEL ALSO IN THE WORKS FRESHTABLES PREPARED SALAD PRODUCTS IN AN ERA OF GROWING CONSUMER CONCERN ABOUT FOOD SAFETY PILLSBURY IS BETTING CONSUMERS WILL RESPOND TO THE SECURITY PROVIDED BY A FAMILIAR BRAND NAME COMPILED EXCLUSIVELY FOR THE WALL STREET JOURNAL THE LIST OF FASTESTGROWING PRODUCTS IS BASED ON SALES DATA FROM SUPERMARKET SCANNERS EACH QUARTER INFORMATION RESOURCES RANKS MORE THAN 290 PRODUCT CATEGORIES WITH ANNUAL SALES OF AT LEAST 100 MILLION BY PERCENTAGE GROWTH COMPARED WITH THE YEAREARLIER PERIOD PREPARED VEGETABLES WEREN'T THE ONLY PRODUCT TO BENEFIT FROM CONSUMERS' GROWING PREFERENCE FOR FRESH PRODUCTS SALES OF FRESH BAGELS AND BIALYS GREW 33 IN THE QUARTER TO 30 MILLION THAT'S DUE IN PART TO THE INCREASING DEMAND FOR THE ROUND ROLLS IN AMERICA'S HEARTLAND RISING NUTRITION CONSCIOUSNESS AMONG CONSUMERS MANY OF WHOM NOW RECOGNIZE THAT A BAGEL CONTAINS LESS FAT THAN A MUFFIN IS ALSO FUELING GROWTH EVEN PHILIP MORRIS COS' KRAFT GENERAL FOODS UNIT IS JUMPING ON THE TREND SELLING FRESH BAGELS UNDER ITS LENDER'S BRAND IN THREE CITIES CONVENIENT FRESHNESS BAGELS ARE MAKING THE SAME TRANSITION AS MANY OTHER PRODUCTS TODAY FROM FROZEN TO PACKAGED TO FRESH SAYS GARY STIBEL A PRINCIPAL WITH NEW ENGLAND CONSULTING GROUP IN WESTPORT CONN FRESH BAGELS ARE MORE CONVENIENT AND THEY'RE BETTER QUALITY OTHER STRONG SELLERS INCLUDED ALLERGY REMEDIES WITH SALES UP 22 THE GROWTH WAS DRIVEN LARGELY BY THE OVERTHECOUNTER LAUNCH OF THE ANTIHISTAMINE TAVIST BY SANDOZ PHARMACEUTICALS CORP A UNIT OF SWITZERLAND'S SANDOZ AG BOTTLED NONCARBONATED WATERS ALSO GREW RAPIDLY IN THE QUARTER SPURRED LARGELY BY INCREASING CONSUMER ACCEPTANCE OF INEXPENSIVE PRIVATELABEL WATERS SUCH AS PRESIDENT'S CHOICE AND SMITH'S WATER MARKETING GURUS SAY THE SUPERMARKET SUPERSTARS LIST SHOWS THE COMPLEX MIX OF FACTORS MOTIVATING CONSUMERS WHILE TASTE REMAINS CONSUMERS' TOP PRIORITY A HEALTHY PITCH STILL SELLS PROVIDED THE PRODUCTS ARE CONVENIENT BRANDED PRODUCE HOWEVER HASN'T ALWAYS BEEN AN EASY SELL ESPECIALLY FOR BASIC ITEMS LIKE POTATOES AND TOMATOES IT HAS BEEN TOUGH TO CONVINCE CONSUMERS WHO TYPICALLY PREFER TO PICK OVER PRODUCE THEMSELVES THAT ONE TOMATO IS WORTH MORE THAN ANOTHER BECAUSE OF A BRAND NAME THOUGH IT CONTINUES TO SELL FRESH MUSHROOMS UNDER ITS OWN LABEL CAMPBELL SOUP CO HAS DISBANDED ITS FRESH PRODUCE UNIT THE COMPANY ONCE TESTED PREPARED SALADS BUT A SPOKESMAN SAYS IT WILL STICK TO SOUP PRODUCE IS A COMMODITY AND NOBODY IS WILLING TO PAY EXTRA FOR THE IMAGERY OF A BRAND SAYS JOHN LISTER PRESIDENT OF LISTER BUTLER INC A DESIGN AND CONSULTING FIRM IN NEW YORK BUT CLEANING AND MIXING SEVERAL TYPES OF GREENS PROVIDES A SIGNIFICANT PRODUCT ENHANCEMENT FOR MANY CONSUMERS HE SAYS INDEED HE AND HIS WIFE REGULARLY DROP THE PRODUCTS INTO THEIR OWN SHOPPING CART WE'RE CONVENIENCE MAVENS AND IT'S GOOD STUFF THE NEW CROP OF SALAD PRODUCTS IS ALSO GETTING A BOOST FROM IMPROVED PACKAGING THAT PROLONGS FRESHNESS FRESH EXPRESS WHICH FAILED WITH A PREPARED SALAD IN THE EARLY 1980S NOW BAGS GREENS IN PLASTIC THAT KEEPS DOWN LEVELS OF OXYGEN PREVENTING LETTUCE FROM TURNING BROWN OR PINK THE RESULT A PRODUCT THAT LASTS FOR 14 DAYS EVEN IF IT ISN'T KEPT QUITE AS COLD AS IT SHOULD BE 9306030104 930603 MOBIL CORP NIGERIAN ACCORD FAIRFAX VA MOBIL CORP SAID ITS NIGERIAN EXPLORATION AND PRODUCTION UNIT SIGNED A PRODUCTIONSHARING AGREEMENT WITH NIGERIAN NATIONAL PETROLEUM CORP THE AGREEMENT WILL ALLOW MOBIL TO EXPLORE THE 565000ACREBLOCK OIL PROSPECTIVE LEASE 221 THE LEASE IS ABOUT 50 MILES OFFSHORE NIGERIA AND 10 MILES SOUTHWEST OF CURRENT MOBIL PRODUCING OPERATIONS IN WATER 600 TO 3000 FEET IN DEPTH MOBIL IS ALREADY ACTIVE IN OIL PRODUCTION AND MARKETING OF GASOLINE IN NIGERIA 9306030103 930603 INTERNATIONAL JAPANESE STEEL EXPORTS SURGE TOKYO JAPAN'S STEEL EXPORTS FOR APRIL SURGED 38 FROM THE YEAREARLIER MONTH TO 1960000 METRIC TONS THE JAPAN IRON AND STEEL FEDERATION SAID A METRIC TON EQUALS 22046 POUNDS THE SHARP OVERALL GAIN IS ATTRIBUTED TO AN ASTRONOMICAL RISE IN SHIPMENTS TO CHINA THAT REFLECTED BRISK CONSTRUCTION DEMAND IN THAT COUNTRY A FEDERATION SPOKESMAN SAID THE VOLUME OF STEEL EXPORTS TO CHINA WAS THE HIGHEST MONTHLY TOTAL SINCE DECEMBER 1986 OTHER MARKETS HAVE BEEN WEAK HOWEVER 9306030102 930603 WHO'S NEWS SOUTHWESTERN BELL CORP SOUTHWESTERN BELL CORP SAN ANTONIO TEXAS PAT F PARKER 45 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER OF THE SOUTHWESTERN BELL MOBILE SYSTEMS UNIT OF THIS REGIONAL BELL TELEPHONE COMPANY MS PARKER WILL BE SUCCEEDED AS VICE PRESIDENT OF MARKETING AT THE UNIT BY JAMES W CALLAWAY 46 PRESIDENT OF THE KANSAS DIVISION OF SOUTHWESTERN BELL TELEPHONE MR CALLAWAY WILL BE SUCCEEDED BY SUSAN B FOX 45 MANAGING DIRECTOR FOR INVESTOR RELATIONS AND SHARE OWNER SERVICES FOR THE PARENT 9306030101 930603 LETTERS TO THE EDITOR PCNESS AT NYU I WAS ASTOUNDED BY THE POSITION OF THE NEW YORK UNIVERSITY LAW FACULTY LAW COLUMN APRIL 23 IN ITS REFUSAL TO PERMIT LAW FIRMS BASED IN COLORADO TO INTERVIEW ITS STUDENTS BECAUSE THE CITIZENS OF THAT STATE VOTED IN FAVOR OF A LAW THAT NYU'S FACULTY DOES NOT APPROVE OF I HAVE NO INFORMATION THAT THE FACULTY BELIEVES THE LAW TO BE UNCONSTITUTIONAL OR THAT THE ELECTION SOMEHOW WAS NOT DEMOCRATICALLY CONDUCTED ONLY THAT THE LAW IS NOT POLITICALLY CORRECT IT IS BEYOND ME HOW A LAW SCHOOL CAN BE CAPABLE OF PROVIDING A LEGAL EDUCATION WHEN THE MEMBERS OF ITS OWN FACULTY HARBOR SUCH A DISTORTED UNDERSTANDING OF LAW AND LOGIC 9306030100 930603 REVIEW & OUTLOOK EDITORIAL THE PRESSURE ON ASYLUM GERMANY UP TO NOW HAS HAD THE WORLD'S MOST LIBERAL ASYLUM LAW FOR THE 440000 ASYLUM SEEKERS IT RECEIVES EACH YEAR IT WAS ADOPTED AFTER WORLD WAR II TO ENSURE THE COUNTRY WOULD NEVER AGAIN SANCTION THE POISONOUS RACISM AND XENOPHOBIA OF ITS NAZI PAST ON SATURDAY A FIREBOMB IN THE TOWN OF SOLINGEN KILLED FIVE TURKISH GIRLS AND WOMEN AGED 4 TO 27 THIS TRAGEDY OCCURRED ONLY DAYS AFTER GERMANY'S BUNDESTAG VOTED 521 TO 132 LAST WEEK TO OVERTURN THE CONSTITUTIONAL GUARANTEE OF ASYLUM THE NEW BILL WILL ALLOW GERMANY TO BEGIN REFUSING ENTRIES DEPORTING UNWANTED ASYLUM SEEKERS AND CUTTING BENEFITS THE REVISION OF THIS LAW AND THE MURDER OF THE TURKISH GIRLS AND WOMEN SHOULD CAUSE THOUGHTFUL PEOPLE EVERYWHERE TO WANT TO KNOW PRECISELY HOW IT IS THAT THE GLOBAL MOVEMENT OF THE WORLD'S PEOPLES IS SUDDENLY GOING SO TRAGICALLY WRONG AS NOW IN GERMANY THE DETAILS OF THE GERMAN CASE ARE REVEALING THE OFFENDING ARTICLE 16 OF THE GERMAN CONSTITUTION SAYS SIMPLY THAT PERSONS PERSECUTED ON POLITICAL GROUNDS SHALL ENJOY THE RIGHT TO ASYLUM IT MAKES NO OTHER GUARANTEES AND DOES NOT PROMISE ECONOMIC REFUGE TO THE WORLD'S POOR IT SIMPLY REFLECTS AN OPENNESS TO ACCEPTING THOSE WILLING TO UPHOLD THE LAWS OF THE LAND AND EAGER TO WORK IT WAS A GOOD POLICY WHEN GERMANY ADOPTED IT AND IT IS A GOOD POLICY TODAY THE PROBLEM IS THAT PUBLIC OFFICIALS MISMANAGED IT WITH THE END OF THE COLD WAR INCREASING NUMBERS OF ASYLUM SEEKERS FROM EASTERN EUROPE AND ELSEWHERE SOUGHT REFUGE IN GERMANY MOST OF THESE WEREN'T POLITICALLY OPPRESSED BUT WERE ONLY SEEKING BETTER OPPORTUNITIES THAN EXISTED IN THEIR HOMELAND GERMANY'S LIBERAL POLICIES LEFT THE COUNTRY WITH MORE THAN ITS SHARE OF EUROPE'S REFUGEES BUT THE NUMBERS AREN'T THE MAIN SOURCE OF THE PROBLEM ASYLUM SEEKERS COME READY TO WORK HARD THEY PERFORM JOBS THAT MUCH OF GERMANY'S SKILLED AND HIGHLY PAID WORK FORCE WON'T DO THE PROBLEM IS THAT INSTEAD OF QUICKLY PROCESSING APPLICATIONS FOR ASYLUM GERMANY'S COURTS TANGLE THEM UP FOR YEARS LEAVING MANY ASYLUM CANDIDATES IN LIMBO WHILE THEIR FATES ARE DECIDED FOR EXAMPLE SOME APPLICANTS HAVE FOUND STEADY EMPLOYMENT ACQUIRED ASSETS AND SET UP FAMILIES ONLY TO BE TOLD BY A COURT YEARS LATER THAT THEIR REQUEST HAS BEEN DENIED OR THAT THEY MUST STOP WORKING UNTIL IT CAN BE PROCESSED BUT BYZANTINE RULES MAKE IT NEARLY IMPOSSIBLE FOR MOST OF THESE PEOPLE TO FIND WORK LEGALLY AT LEAST SO INCREDIBLY GERMANY PAYS THEM TO STAY IDLE THE AVERAGE ASYLUM SEEKER RECEIVED UP TO 6250 A YEAR IN FOOD SHELTER MONEY AND CLOTHING THOUGH LATELY SOME EFFORT HAS BEEN MADE TO REDUCE THAT AND A BUREAUCRACY BENT ON MANAGING THE REFUGEES SHIPS THEM AROUND THE COUNTRY IN THE NAME OF EVEN DISTRIBUTION WITH LITTLE REGARD TO THE LABOR NEEDS OF DIFFERENT REGIONS PREDICTABLY GERMANS GREW RESENTFUL THEIR TAX MARKS WERE GIVING FOREIGNERS A FREE LUNCH THEN EXTREMIST MOVEMENTS BEGAN CAPITALIZING ON THE GOVERNMENT'S MISMANAGEMENT OF THE ASYLUM SEEKERS TURNING IT INTO A QUESTION OF NATIONALISM AND EXPLOITING THE FRUSTRATION OF GERMANS WHO'D BEEN HIT BY THE COSTS OF UNIFICATION AND A GENERAL ECONOMIC SLOWDOWN IN TIME ARTICLE 16 THE OPENASYLUM LAW BECAME THE SCAPEGOAT THERE ARE TWO REAL CULPRITS HERE ONE IS GOVERNMENT WHOSE NOTION OF A SOLUTION IS TO CREATE PAPER AND PROCEDURES AND PROGRAMS RATHER THAN PROVIDING INCENTIVES FOR ASYLUM SEEKERS TO BE PRODUCTIVE THE GOVERNMENT HAS SQUANDERED MONEY ON KEEPING THEM IDLE AND HAS TACITLY ENDORSED XENOPHOBIC SENTIMENTS WITH ITS FEEBLE RESPONSE TO VIOLENT CRIME AGAINST IMMIGRANTS NOW WITH THE LAW'S REVISION THE GOVERNMENT IN EFFECT BLAMES THE IMMIGRANTS OR MORE PRECISELY THE LIBERAL LAWS FOR THE PROBLEMS THE OTHER CULPRIT THOUGH IS THE REST OF EUROPE WHOSE POLITICAL LEADERS HAVE THE SAME BACKWARD VIEWS ON IMMIGRATION THEY CLOSED THEIR DOORS TO SUCH PEOPLE EARLIER FORCING GERMANY TO ADDRESS WHAT IS REALLY THE CONTINENT'S PROBLEM AS THE REST OF EUROPE AND EVEN THE US STRUGGLES TO DEFINE ITS OWN IMMIGRATION POLICIES OTHER GOVERNMENTS MAY BE TEMPTED TO FOLLOW THE GERMAN EXAMPLE AND TIGHTEN YET FURTHER TO DEFUSE PRESSURE FROM THEIR OWN NATIONALIST AND XENOPHOBIC MOVEMENTS WATCH FOR SIGNS OF THIS AS THE EC'S JUSTICE MINISTERS MEET IN COPENHAGEN THIS WEEK TO DISCUSS IMMIGRATION POLICY AND OTHER ISSUES IF GERMANY'S POLICY BECOMES THE TREND EUROPE WILL ULTIMATELY SUFFER THE LOSS OF A RESOURCE THAT HAS HISTORICALLY GIVEN FAR MORE THAN IT HAS TAKEN WORSE THE WORLD WILL SLOWLY DEVOLVE IN THE DIRECTION OF RACIAL AND ETHNIC BITTERNESS THE RESULT IS OFTEN VIOLENT 9306030099 930603 REVIEW & OUTLOOK EDITORIAL ASIDES PUBLIC ENTROPY NEWS REPORTS PERSIST OF UNFILLED POSITIONS IN THE CLINTON ADMINISTRATION THE AP REPORTED YESTERDAY THAT SENATOR LEAHY CAN'T GET HIS CALLS RETURNED FROM THE AGRICULTURE DEPARTMENT THE PERSON IN CHARGE OF MEDICAID AND MEDICARE JUST ARRIVED LAST WEEK THE NATIONAL ENDOWMENT FOR THE ARTS IS BEING RUN BY A LONGTIME CIVIL SERVANT DOLING OUT GRANTS THAT NO ONE NOTICES WE GUESS WE NEED A GOVERNMENT BUT IT'S INTRIGUING TO CONTEMPLATE OFFICIAL WASHINGTON WASTING ENERGY TENDING TO DISORDER AND PERHAPS WINDING DOWN AND EVEN OUT 9306030098 930603 CHICAGO HOPES ITS SHIPS HAVE COME IN WITH GAMBLING PLAN CITY'S REVISED PROPOSAL SEES AS MANY AS FIVE RIVERBOATS ANCHORED ALONG ITS RIVER BY SUSAN CAREY AND PAULINE YOSHIHASHI STAFF REPORTERS OF THE WALL STREET JOURNAL CHICAGO THIS CITY HAS ROLLED A NEW PAIR OF DICE IN ITS BID TO BECOME A GAMBLING CITY BUT THE GAME ISN'T OVER MAYOR RICHARD M DALEY'S CHIEF OF STAFF YESTERDAY PROPOSED TO STATE LEGISLATORS A PLAN FOR AN 800 MILLION ENTERTAINMENT AND GAMBLING COMPLEX ON AS MANY AS FIVE RIVERBOATS ANCHORED IN THE CHICAGO RIVER THE PROPOSAL IS INTENDED TO SATISFY OBJECTIONS RAISED BY ILLINOIS GOV JIM EDGAR AND OTHERS ABOUT A 2 BILLION LANDBASED CASINO COMPLEX FOR CHICAGO THE ORIGINAL PLAN DIED DUE TO CONCERNS ABOUT THE SCALE OF THE PROJECT THE COMPETITION IT WOULD POSE TO ILLINOIS'S EXISTING HORSE RACING AND RIVERBOAT GAMING BUSINESSES AND THE POSSIBILITY OF CRIME WHILE THE RIVERBOAT PLAN WOULD ONLY ACCOMMODATE 25 OF THE GAMBLERS ENVISIONED IN THE FIRST PROPOSAL IT IS HARDLY A DONE DEAL BECAUSE ILLINOIS'S 1990 RIVERBOAT GAMBLING LAW SPECIFICALLY EXCLUDED CHICAGO THE CITY'S CASINO ASPIRATIONS NEED TO BE APPROVED BY BOTH THE LEGISLATURE AND GOV EDGAR IT IS NOT CERTAIN THE LEGISLATURE WILL BE READY TO TAKE UP THE ISSUE BEFORE ITS JULY 1 SUMMER RECESS MOREOVER ALTHOUGH GOV EDGAR IS MORE AMENABLE TO THE SCALEDBACK RIVERBOAT PLAN CERTAIN DETAILS REMAIN TO BE WORKED OUT ACCORDING TO MAYOR DALEY'S SPOKESMAN ONE ISSUE IS WHETHER THE BOATS WILL BE MOBILE MAYOR DALEY SEES THE BOATS AS STATIONARY IN THE NARROW CONGESTED CHICAGO RIVER THE SPOKESMAN SAID BUT THE GOVERNOR WOULD PREFER FOR THE VESSELS TO TRAVEL WHICH COULD PLAY HAVOC WITH CITY TRAFFIC AND CHICAGO'S MANY DRAWBRIDGES POLITICS ASIDE AS THE PLAN STANDS NOW IT IS A COMMERCIAL CRAPSHOOT ACCORDING TO ANALYSTS THE VARIOUS FEES CHARGES AND SPECIAL 25 GAMBLING TAX WOULD MAKE CHICAGO THE MOST EXPENSIVE JURISDICTION IN THE WORLD FOR CASINO OPERATORS LAS VEGAS ATLANTIC CITY NJ AND RIVERBOAT SITES IN OTHER STATES GENERALLY HAVE GAMBLING TAXES RANGING FROM 7 TO 20 ALTHOUGH CHICAGO IS CONSIDERED ONE OF THE MOST PROMISING SITES FOR CASINO DEVELOPMENT IN NORTH AMERICA MAYOR DALEY'S CURRENT PROPOSAL ISN'T LIKELY TO SPARK A BIDDING WAR AMONG THE LEADING CASINO OPERATORS CIRCUS ENTERPRISES INC HILTON HOTELS CORP AND CAESARS WORLD INC SAID THEY WERE ENCOURAGED BY THE NEW PROPOSAL BUT ALL DECLINED TO COMMENT ON THE SPECIFICS UNTIL A BILL IS INTRODUCED IN ILLINOIS SOME ANALYSTS WERE MORE DIRECT THIS IS CRAZY SAID DENNIS FORST OF HANCOCK INSTITUTIONAL EQUITY SERVICES OF MAYOR DALEY'S PLAN I DON'T KNOW HOW ANYONE CAN MAKE MONEY AT THOSE TAX RATES 9306030097 930603 IN RADICAL SHIFT CS FIRST BOSTON WILL MELD INVESTMENT BANKS BY MICHAEL SICONOLFI AND ALEXANDRA PEERS STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK CS FIRST BOSTON GROUP INC IS QUIETLY ABANDONING ITS FIVEYEAR EFFORT TO CREATE A GLOBAL TRIUMVIRATE OF INVESTMENTBANKING UNITS INSTEAD THE COMPANY PLANS A RADICAL STRATEGIC SHIFT THAT AMONG OTHER THINGS CONSOLIDATES THE UNITS WHICH LIKELY WILL OPERATE UNDER A SINGLE NAME IN AN INTERNAL MEMO CS FIRST BOSTON SAID IT IS SURRENDERING ITS REGIONAL STRUCTURE OF THREE INVESTMENT BANKING UNITS OPERATING OUT OF NEW YORK LONDON AND TOKYO A COMBINATION HAMSTRUNG BY TENSIONS BETWEEN FIRST BOSTON INVESTMENT BANKERS IN THE US AND EUROPE INSTEAD THE UNIT OF CS HOLDING WHICH ALSO OWNS GIANT SWISS BANK CREDIT SUISSE WILL BE MANAGED ALONG PRODUCT LINES IT IS THE BIGGEST STRUCTURAL CHANGE IN THE FIRM SINCE THE MERGER OF FIRST BOSTON AND ITS EUROPEAN AFFILIATE IN 1988 BACK THEN WHEN THE TWO MERGED TO CREATE CS FIRST BOSTON THE FIRM SAID WITH MUCH HOOPLA THAT IT WOULD BECOME A TRULY GLOBAL INVESTMENT BANK WITH CLOSELY LINKED UNITS IN NEW YORK FIRST BOSTON CORP LONDON FINANCIERE CREDIT SUISSEFIRST BOSTON AND TOKYO CS FIRST BOSTON PACIFIC INC BUT COORDINATION AMONG THE UNITS HASN'T ALWAYS BEEN SMOOTH AND PAY ISSUES HAVE EXACERBATED TENSIONS INVESTMENT BANKERS SAY THIS SHAKEUP COMES AS FIRST BOSTON GRAPPLES WITH AN EXODUS OF INVESTMENT BANKERS AND TRADERS ANGERED BY COMPENSATION THEY SAY IS BELOW THAT PAID BY COMPETITORS DOZENS OF TRADERS AND INVESTMENT BANKERS HAVE DEFECTED FROM CS FIRST BOSTON GROUP SO FAR THIS YEAR IN PARTICULAR NEW YORK BANKERS WERE IRATE BECAUSE ALTHOUGH THEIR OFFICE HAD HUGE PROFITS THE FIRM'S BOTTOM LINE AND THEIR COMPENSATION WAS DRAGGED DOWN BY LOSSES ON LONDON BOND TRADES LATE IN THE YEAR EVEN THOUGH CS FIRST BOSTON IS ENJOYING SOLID PROFITS THIS YEAR ITS NET INCOME WAS 175 MILLION IN 1992 DOWN 19 FROM A YEAR EARLIER MANY OF ITS RIVALS ENJOYED RECORD EARNINGS FIRST BOSTON OFFICIALS ARGUED THAT THE MOVE DIDN'T REFLECT A FAILURE OF THE FIRM'S ORIGINAL STRUCTURE IT IS AN ACKNOWLEDGMENT THAT THE MARKETS HAVE CHANGED AND THAT THIS IS A MORE EFFICIENT WAY TO DO IT A SPOKESMAN SAID FIRST BOSTON EXECUTIVES SAY THE SHIFT IS EVOLUTIONARY NOTING THAT THE FIRM STARTED STRUCTURING ITS DERIVATIVES FOREIGN EXCHANGE AND BOND BUSINESS AWAY FROM REGIONAL LINES IN RECENT YEARS IT'S NOW A MATRIX WHERE THE SOLID LINE IS THE PRODUCT AND THE DOTTED LINE IS THE REGION SAID A FIRST BOSTON OFFICIAL NEW STRUCTURE ANNOUNCED UNDER THE NEW STRUCTURE FIRST BOSTON'S FIXEDINCOME BUSINESS WILL REPORT TO ALLEN WHEAT HEAD OF CREDIT SUISSE FINANCIAL PRODUCTS AND ROBERT DIAMOND JR FORMER HEAD OF CS FIRST BOSTON PACIFIC THE INVESTMENT BANKING BUSINESS WILL REPORT TO ARCHIBALD COX JR FIRST BOSTON CORP'S PRESIDENT AND CHIEF EXECUTIVE OFFICER AND ITS EQUITIES DIVISION WILL REPORT TO MR COX AND DAVID MULFORD CHIEF OF CREDIT SUISSE FIRST BOSTON THE TRADEPROCESSING DIVISION WILL REPORT TO REUDI STADLER CS FIRST BOSTON'S CHIEF FINANCIAL OFFICER THE NEW STRUCTURE WAS FIRST REPORTED IN INVESTMENT DEALERS' DIGEST A TRADE PUBLICATION UNDER THE NEW STRUCTURE FIRST BOSTON'S FIXEDINCOME BUSINESS WILL REPORT TO ALLEN WHEAT HEAD OF CREDIT SUISSE FINANCIAL PRODUCTS AND ROBERT DIAMOND JR FORMER HEAD OF CS FIRST BOSTON PACIFIC THE FIRM'S EQUITIES DIVISION WILL REPORT TO ARCHIBALD COX JR FIRST BOSTON CORP'S PRESIDENT AND CHIEF EXECUTIVE AND ITS INVESTMENT BANKING BUSINESS WILL REPORT TO MR COX AND DAVID MULFORD CHIEF OF CREDIT SUISSE FIRST BOSTON THE FIRM'S TRADEPROCESSING DIVISION WILL REPORT TO RUEDI STALDER CS FIRST BOSTON'S CHIEF FINANCIAL OFFICER THE NEW STRUCTURE WAS FIRST REPORTED IN INVESTMENT DEALERS' DIGEST A TRADE PUBLICATION IT IS RECOGNIZED THAT AN INCREASINGLY IMPORTANT PART OF OUR PRESENT AND FUTURE HIGHMARGIN BUSINESS WILL COME FROM A MORE INTEGRATED APPROACH TO ALL OF OUR BUSINESSES THE MEMO SAID THE NEWLY ALIGNED FIRM WILL ADOPT A GLOBAL PROFITANDLOSS STATEMENT A NEW NAME HASN'T YET BEEN SET FIRST BOSTON OFFICIALS SAID IN RECENT YEARS CS FIRST BOSTON MADE SOME STRIDES IN THE CLOSELY WATCHED RANKINGS OF WALL STREET UNDERWRITERS IT WAS RANKED NO 4 AMONG ALL UNDERWRITERS OF NEW STOCK AND BOND ISSUES DURING THE FIRST QUARTER WITH A 99 MARKET SHARE ACCORDING TO SECURITIES DATA CO 9306030096 930603 WHO'S NEWS STOCK EXCHANGE'S JIM JONES IS NAMED ENVOY TO MEXICO WASHINGTON PRESIDENT CLINTON AS EXPECTED NAMED JIM JONES CHIEF EXECUTIVE OFFICER OF THE AMERICAN STOCK EXCHANGE TO BE US AMBASSADOR TO MEXICO THE CLINTON ADMINISTRATION IS LIKELY TO USE THE FORMER CONGRESSMAN IN ITS EFFORTS TO SELL THE NORTH AMERICAN FREE TRADE AGREEMENT TO CONGRESS IN NEW YORK THE STOCK EXCHANGE ANNOUNCED A SEVENMEMBER COMMITTEE TO CHOOSE A SUCCESSOR TO MR JONES THE SEARCH COMMITTEE WILL BE COHEADED BY GG MICHELSON A MEMBER OF THE RH MACY & CO BOARD AND JOEL L LOVETT VICE CHAIRMAN OF THE AMEX BOARD AND PRESIDENT OF JACEE SECURITIES OTHER MEMBERS OF THE SEARCH COMMITTEE INCLUDE FORMER FEDERAL RESERVE CHAIRMAN PAUL A VOLCKER WHO NOW HEADS JAMES D WOLFENSOHN INC AN INVESTMENT BANKING FIRM 9306030095 930603 OPTIMISM SLIPPED TO LATE 1990 LOW IN SURVEY OF INDUSTRIES NEW YORK MANUFACTURERS' OPTIMISM DIPPED TO ITS LOWEST SINCE THE PERSIAN GULF CRISIS IN LATE 1990 WHILE THE CONSTRUCTION INDUSTRY LOST THE MOMENTUM OF FIVE MONTHS OF IMPROVING OPTIMISM ACCORDING TO TWO SURVEYS BY DUN & BRADSTREET CORP MANUFACTURERS' CONFIDENCE ABOUT THE NEAR TERM HAS BEEN SHAKEN SAID DOUGLAS P HANDLER MANAGER OF ECONOMETRIC ANALYSIS FOR D&B THE COMBINATION OF SLOWER ECONOMIC GROWTH AND THE PROSPECT OF HIGHER TAXES IS NOW BEING FACTORED INTO MOST PLANT MANAGERS' PLANS AND AS FOR THE DECLINE IN THE CONSTRUCTION INDUSTRY'S EXPECTATIONS MR HANDLER SAID THE MAY SURVEY'S RESULTS SUGGEST THAT MANY CONSTRUCTION FIRMS HAVE SEEN IMPROVEMENTS OVER THE PAST YEAR BUT FOR THOSE THAT HAVEN'T THERE IS A SHRINKING PIECE OF PIE LEFT OVER IN ITS MONTHLY SURVEY OF 1000 MANUFACTURES NATIONWIDE D&B NOTED THAT ITS INDUSTRIAL SENTIMENT INDEX WHICH MEASURES EXPECTATIONS FOR THE COMING THREE MONTHS FELL FIVE POINTS IN MAY TO 19 FROM ITS RECORD OF 24 IN APRIL WHICH WAS THE HIGHEST LEVEL SINCE SURVEY RESULTS WERE FIRST ISSUED IN JANUARY 1991 THE INDEX STOOD AT 20 IN MAY 1992 THE INDEX REPRESENTS THE PERCENTAGE OF RESPONDENTS EXPECTING INCREASES IN THINGS SUCH AS PRODUCTION AND NEW ORDERS MINUS THE PERCENTAGE EXPECTING DECREASES THE COMPONENT INDEX FOR PRODUCTION WHICH IS PART OF THE INDUSTRIAL SENTIMENT INDEX FELL NINE POINTS TO 39 FROM 48 IN APRIL WHILE THE NEW ORDERS INDEX ALSO FELL NINE POINTS TO 42 FROM 51 MAY'S DECLINE IN OPTIMISM IS ALARMING BECAUSE OF ITS PERVASIVENESS ESPECIALLY THE DROP IN EXPECTED NEW ORDERS COMBINED WITH AN ANTICIPATED SHRINKAGE IN BACKLOGS MR HANDLER SAID 9306030094 930603 INTERNATIONAL SOUTH KOREAN AUTO EXPORTS SEOUL SOUTH KOREA SOUTH KOREA'S AUTOMOBILE EXPORTS TOTALED 41587 VEHICLES IN MAY UP 22 FROM 33987 THE YEAR BEFORE THE KOREA AUTOMOBILE INDUSTRY ASSOCIATION SAID THE ASSOCIATION SAID THE RISE WAS DUE TO A RECOVERY OF PRICE COMPETITIVENESS BY SOUTH KOREAN AUTOS RESULTING FROM A STRONGER JAPANESE CURRENCY THE ASSOCIATION ALSO NOTED THAT EXPORTS WOULD HAVE FARED BETTER IF NOT FOR A 10DAY LABOR DISPUTE AT APOLLO INDUSTRIAL CO A PARTS SUPPLIER THE DISPUTE FORCED THE NATION'S LARGEST AUTO MAKER HYUNDAI MOTOR CO TO HALT ITS WHOLE OPERATION DURING THE PERIOD 9306030093 930603 ENTERPRISE OFFERING AN INDUCEMENT TO SPLURGE RESTAURANTS STAGE SPECIAL ATTRACTIONS BY BARBARA MARSH STAFF REPORTER OF THE WALL STREET JOURNAL TO FILL THEIR TABLES IN THESE COSTCONSCIOUS TIMES MANY PRICEY RESTAURANTS ARE SPICING THEIR OFFERINGS WITH SPECIAL EVENTS A DENVER RESTAURANT STAGES DINNERS EXPRESSLY FOR CIGAR SMOKERS A NEW YORK ESTABLISHMENT PLANS A SPECIAL MEAL BUILT AROUND CAVIAR IN NEW ORLEANS A CHEF PREPARES AN ANNUAL DINNER FOR PEOPLE WHO JUST CAN'T GET ENOUGH GARLIC AND FOR PEOPLE WHO WOULDN'T BE CAUGHT DUMPING MAZOLA INTO THE SALAD BOWL A CHICAGO RESTAURANT OFFERS PERIODIC OLIVEOIL TASTINGS SUCH ACTIVITIES SEEM CRITICAL AT A TIME WHEN DINERS NEED A SPECIAL REASON TO SPLURGE RESTAURANTINDUSTRY CONSULTANTS SAY LAST YEAR RESTAURANTS WITH AVERAGE DINNERS COSTING 25 OR MORE PER PERSON SAW CUSTOMER COUNTS DROP 2 REPORTS THE NATIONAL RESTAURANT ASSOCIATION CUSTOMER COUNTS FOR THE WHOLE INDUSTRY ROSE 2 MAINLY BECAUSE CONSUMERS FLOCKED TO CASUAL EATERIES AND FASTFOOD OUTLETS IN THE UPSCALE END OF THE BUSINESS MANY RESTAURANTS THESE DAYS ARE TRYING TO SOFTSELL THE CUSTOMER BY SUPPLEMENTING THEIR FOOD WITH EDUCATIONAL ACTIVITIES LECTURES ON MEXICAN CHILIS FOR EXAMPLE SUDDENLY THAT 75 TICKET FOR TWO PEOPLE BECOMES TUITION NOTES RONALD PAUL PRESIDENT OF TECHNOMIC INC A CHICAGO RESTAURANT CONSULTING FIRM WHILE SPECIAL EVENTS PROVIDE A REASON TO SPLURGE THEY CAN BE TRICKY FOR A RESTAURANT TO STAGE THE KEY IS TO FIND A GROUP OF CUSTOMERS WITH A NEED OR DESIRE WAITING TO BE FULFILLED SUCH AS THAT MODERN PARIAH THE CIGAR SMOKER BUT AS ZENITH AMERICAN GRILL IN DENVER DISCOVERED SUCCESS DEMANDS MORE THAN AN IDEA THE FIRST CHALLENGE FOR ZENITH AMERICAN WHICH HIT UPON THE CIGARSMOKER DINNERS BECAUSE IT WAS LOSING CUSTOMERS WAS DEVISING DISHES BOLD ENOUGH TO BLAST THROUGH THE CIGAR TANG A TYPICAL MENU PASTA STUFFED WITH SHRIMP AND SMOKED JALAPENO SMOKED CHICKEN SALAD ROAST BEEF WITH HORSERADISH AND CHOCOLATE MASCARPONE CAKE WITH ANISEFLAVORED CUSTARD SAUCE COMPLETE WITH COGNAC AND CIGARS THE DINNERS COST 60 A HEAD WELL WORTH IT SAYS GERALD SLATER A GLENWOOD SPRINGS COLO PEDIATRICIAN AND CIGAR SMOKER WHO IS SO GLAD FOR A CHANCE TO LIGHT UP WITH IMPUNITY THAT HE DRIVES 160 MILES TO ATTEND YOU DON'T GO FOR THE CIGARS HE SAYS YOU GO FOR THE REVITALIZATION OF AN OLD MALE TRADITION THE EXCLUSIVITY OF MEN'S CLUBS AND GETTING TOGETHER IN A RELAXED SOCIAL ATMOSPHERE OF 65 SMOKERS GATHERED AT AN APRIL DINNER ONLY THREE WERE WOMEN NOT THAT EVERYBODY WAS HAPPY AT ONE GATHERING LAST YEAR SMOKE GOT SO THICK THAT IT SEEPED FROM THE PARTY ROOM INTO THE MAIN DINING AREA TO THE IRRITATION OF DINERS THERE AT ANOTHER DINNER LAST FALL THE SMOKE REPEATEDLY TRIPPED AN ALARM SUMMONING LOCAL FIREFIGHTERS TWICE IN ONE EVENING ZENITH AMERICAN NOW CLOSES THE RESTAURANT TO THE GENERAL PUBLIC WHEN IT HOLDS THE DINNERS FOR CIGAR SMOKERS ZENITH AMERICAN HAS ONLY HAD THREE CIGARSMOKER DINNERS SINCE IT BEGAN THE EVENTS EARLY LAST YEAR BUT CUSTOMERS ATTRACTED BY THE SPECIAL DINNERS HELPED INCREASE THE RESTAURANT'S SALES 25 FROM A YEAR EARLIER IN THE FIRST THREE MONTHS OF THIS YEAR SAYS KEVIN TAYLOR AN OWNER OF THE RESTAURANT EVEN THE MOST VENERABLE RESTAURANTS FIND THEY NEED SPECIAL EVENTS THESE DAYS AT THE 66YEAROLD RUSSIAN TEA ROOM IN NEW YORK SALES WERE OFF IN 1991 AND AGAIN IN 1992 SAYS OWNER FAITH STEWARTGORDON EVERYBODY MUST FIND NEW WAYS TO ATTRACT PEOPLE SHE SAYS MS STEWARTGORDON SAYS ONE IDEA THAT HAS HELPED REVERSE THE SALES DECLINE IS THE RTR CAVIAR CLUB LAUNCHED IN JANUARY THIS PROMOTION GIVES ANY CUSTOMER WHO SIGNS UP A 20 DISCOUNT ON CAVIAR ORDERED AT THE RESTAURANT MEMBERS GET INVITED TO TASTINGS OF CAVIAR PAIRED WITH VODKAS WINES AND BEERS THE FIRST MEMBERONLY DINNER IS PLANNED FOR LATER THIS MONTH TO COINCIDE WITH THE TRADITIONAL ST PETERSBURG WHITE NIGHTS FESTIVAL CELEBRATING THE MIDNIGHT SUN CAVIAR WILL BE SERVED ALL EVENING OTHER ATTRACTIONS WILL INCLUDE COCKTAILS AND DINNER A CHEF'S TALK FOCUSING ON CAVIAR AND RECIPES USING CAVIAR MS STEWARTGORDON CREDITS THE CLUB WITH LURING BACK FORMER REGULARS ONE IS HELEN BRANN A LITERARY AGENT AND CLUB MEMBER WHO RECENTLY TREATED AUTHOR ROBERT B PARKER TO AN ALLCAVIAR AND MARTINI LUNCH CAVIAR REPRESENTS DOESN'T IT LUXURY AND FUN AND CELEBRATION SAYS MS BRANN WE HAD TONS BUT RESTAURANTS ALSO BUILD SPECIAL EVENTS AROUND MORE COMMON FOODS THAN STURGEON EGGS JOANN CLEVENGER OWNER OF THE UPPERLINE RESTAURANT IN NEW ORLEANS OFFERS A GARLIC DINNER EACH YEAR DURING THE SUMMER NORMALLY A SLOW TIME ON THE MENU ROASTED GARLIC AND BREAD ROAST DUCK WITH GARLIC PORT SAUCE AND CHOCOLATECHIP COOKIES MADE WITH HONEYPOACHED GARLIC MS CLEVENGER BELIEVES HER PROMOTION SUCCEEDS BECAUSE GARLIC IS CONTROVERSIAL PEOPLE LOVE OR HATE IT THAT MAKES THE EVENT SPECIAL AND ATTRACTS BUSINESS SHE SAYS THE RESTAURATEUR TAKES PAINS TO REFER GARLIC HATERS TO GARLICFREE ITEMS ON THE REGULAR MENU AND SHE OFFERS GARLIC LOVERS A BREATH TIP EAT YOUR PARSLEY THE CHLOROPHYLL IS A GOOD ANTIDOTE OF COURSE ANY SPECIAL EVENT CAN GET OUT OF HAND ESPECIALLY WHEN IT IS AMBITIOUS RICK BAYLESS THE CHEF AND COOWNER OF THE FRONTERA GRILL MEXICAN RESTAURANT IN CHICAGO AIMED TO ESCORT 12 CUSTOMERS THIS SPRING ON A FOURDAY TRIP TO HISTORIC SAN MIGUEL MEXICO THE ITINERARY INCLUDED COOKING CLASSES WITH MR BAYLESS SHOPPING FOR REGIONAL INGREDIENTS TAMALEMAKING LESSONS IN A LOCAL HOME DINNER AT A PRIVATE RANCHO AND A TOUR OF COLONIALERA HOMES PROJECTED PRICE 1850 A PERSON HOTEL AND AIR FARE INCLUDED BUT LOGISTICS GOT COMPLEX CUSTOMERS WANTED TO BOOK THEIR OWN FLIGHTS TO MEXICO CITY A 3 1/2 HOUR DRIVE FROM SAN MIGUEL MR BAYLESS FIGURED THAT TO COVER THE COST OF CARS TO MEET EACH PLANE HE WOULD HAVE TO RAISE THE CHARGE BY 300 A PERSON TO 2150 THEN HE GOT COLD FEET HE WORRIED THAT AT THAT PRICE THE GROUP WOULD EXPECT THE STREETS TO BE PAVED WITH GOLD AND COULD EASILY BE DISAPPOINTED HE FEARED HE WOULD LOSE GOOD WILL RATHER THAN GAIN IT SO HE POSTPONED THE TRIP UNTIL NEXT FALL CHANGING THE DESTINATION TO OAXACA AS THAT TOWN IS ONLY A 30MINUTE DRIVE FROM THE AIRPORT HE CAN HOLD TO THE ORIGINAL CHARGE TIMING CAN BE CRITICAL FOR A SPECIAL EVENT NANCY BAROCCI OWNER OF CONVITO ITALIANO IN CHICAGO DISPLAYED POSTERS ANNOUNCING A 25AHEAD OLIVEOIL TASTING ON APRIL 22 APRIL IS USUALLY A SLOW MONTH SHE SAYS SO SHE AIMED TO ENCOURAGE SOME EXCITEMENT BUT FEW SIGNED UP SO SHE TOO POSTPONED HER EVENT UNTIL FALL SHE ISN'T SURE WHY THE IDEA BOMBED IN APRIL BUT GUESSES THAT PEOPLE ASSOCIATE OLIVE OIL WITH HEAVY WINTER FARE NOTING THAT A SIMILAR TASTING SHE HELD A WHILE BACK DREW ABOUT 60 PEOPLE SHE ALSO WONDERS IF OLIVEOIL TASTINGS HAVE SEEN THEIR DAY 9306030092 930603 INTERNATIONAL DUTCH RETAIL SALES UP AMSTERDAM RETAIL SALES IN THE NETHERLANDS ROSE FOR THE SECOND STRAIGHT MONTH IN APRIL GOVERNMENT DATA SHOW THE CENTRAL BUREAU FOR STATISTICS IN THE HAGUE SAID RETAIL SALES WERE UP 28 IN APRIL FROM A YEAR EARLIER AND WERE 2 HIGHER ON A PRICEADJUSTED BASIS BUT AS IN MARCH THE CONFIGURATION OF SHOPPING DAYS IN APRIL WAS MORE FAVORABLE FOR SALES THAN A YEAR EARLIER AND ADJUSTING FOR THAT DIFFERENCE RETAIL SALES WOULD HAVE BEEN UP JUST 1 IN THE LATEST REPORTING MONTH THE AGENCY SAID THE APRIL INCREASES COMPARED LESS FAVORABLY WITH THE 63 UNADJUSTED SALES RISE IN MARCH AND THE 52 JUMP IN REAL TERMS THAT MONTH THE RETAIL SALES DATA ARE PRELIMINARY AND EXCLUDE THE AUTOMOBILE MOTORCYCLE AND PHARMACEUTICALS SECTORS 9306030091 930603 BUSINESS BRIEF SHAW INDUSTRIES INC RIVAL ACCUSES CARPET MAKER OF VIOLATING ANTITRUST LAWS SHAW INDUSTRIES INC SAID IT WAS SUED BY A RIVAL CARPET MAKER FOR ALLEGED VIOLATIONS OF FEDERAL ANTITRUST LAWS DIAMOND RUG & CARPET MILLS INC BASED IN CHATSWORTH GA CHARGED SHAW OF DALTON GA WITH PRICEFIXING TRADE RESTRAINT AND MONOPOLIZATION THE SUIT FILED LAST WEEK IN US DISTRICT COURT IN ROME GA SEEKS 225 MILLION IN DAMAGES SHAW'S PRESIDENT AND CHIEF EXECUTIVE OFFICER ROBERT E SHAW SAID IN A PREPARED STATEMENT THAT THE CASE HAS NO MERIT AND ADDED THAT THE COMPANY INTENDS TO VIGOROUSLY DEFEND IT EXECUTIVES AT DIAMOND RUG DIDN'T RETURN CALLS 9306030090 930603 CLINTON'S NEW FORM OF RACENORMING BY LINDA S GOTTFREDSON PRESIDENT CLINTON SEEMS POISED TO JETTISON LANI GUINIER HIS NOMINEE FOR ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS IN HIS LURCH BACK TO THE POLITICAL CENTER BEFORE MODERATES CELEBRATE HIS RETURN FROM THE EXTREME LEFT HOWEVER THEY SHOULD TAKE A CLOSE LOOK AT THE LATEST DRAFT OF MR CLINTON'S EDUCATION BILL THE CIVIL RIGHTS ACT OF 1991 BANNED THE PRACTICE OF RACENORMING IN EMPLOYMENT TESTING THE RACIAL CURVING OF EMPLOYMENT TEST SCORES THE CLINTON ADMINISTRATION TRIED TO REVIVE THE ILLEGAL PRACTICE BY SMUGGLING IT INTO ITS GOALS 2000 EDUCATE AMERICA ACT THE PRESIDENT'S BILL TO RAISE SKILL LEVELS AMONG AMERICAN STUDENTS AND WORKERS AFTER GETTING CAUGHT THE ADMINISTRATION WITHDREW THE BILL'S RACENORMING LANGUAGE BUT IT DIDN'T STOP THERE IN ITS PLACE IT HAS ADDED LANGUAGE TO THE JOBSSKILLSSTANDARDS SECTION OF THE BILL THAT NOT ONLY WOULD DRIVE DOWN STANDARDS BUT WOULD ALSO MAKE EMPLOYERS VULNERABLE TO CIVILRIGHTS LITIGATION IF THEY IN FACT DO WHAT THE BILL OSTENSIBLY SEEKS TO DO GOALS 2000 WOULD CREATE A NATIONAL SKILL STANDARDS BOARD TO DEVELOP A VOLUNTARY NATIONAL SYSTEM OF OCCUPATIONAL SKILL STANDARDS AND CERTIFICATION PROCEDURES ITS STATED PURPOSE IS TO RAISE WORKER SKILL LEVELS TO ENSURE A HIGH SKILLS HIGH QUALITY HIGH PERFORMANCE WORKFORCE THAT WILL RESULT IN INCREASED PRODUCTIVITY ECONOMIC GROWTH AND AMERICAN ECONOMIC COMPETITIVENESS RAISING STANDARDS HOWEVER HAS DISPARATE IMPACT ON LESSSKILLED GROUPS PRINCIPALLY BLACKS BUT ALSO HISPANICS THIS IS WHY THE ADMINISTRATION'S ORIGINAL BILL INCLUDED A PROVISION MANDATING THAT OCCUPATIONAL CERTIFICATION TESTS BE RACENORMED RACENORMING WOULD HAVE BOOSTED THE SCORES OF INDIVIDUALS IN LESSSKILLED GROUPS TO AVOID DISPARATE IMPACT WHILE CREATING THE APPEARANCE THAT ALL RACIAL AND ETHNIC GROUPS ARE EQUALLY QUALIFIED THE CLINTON ADMINISTRATION'S REVISED BILL WOULD ACCOMPLISH THE SAME RESULT IN AN EVEN MORE PERNICIOUS WAY UNDER THE GUISE OF RAISING SKILL LEVELS IT WOULD HAVE THE NATIONAL BOARD SET LOW MINIMUM SKILL STANDARDS FOR ALL WORKERS IN ORDER TO AVOID DISPARATE IMPACT EMPLOYERS GENERALLY WANT TO DISTINGUISH AMONG DEGREES OF QUALIFICATION ABOVE SOME MINIMUM BECAUSE THE MORE HIGHLY SKILLED AND KNOWLEDGEABLE WORKERS ARE THE MORE PRODUCTIVE THEY TEND TO BE THE MOST EFFECTIVE EMPLOYEESELECTION PROCEDURES ARE THEREFORE ONES THAT RANK QUALIFIED APPLICANTS IN ORDER OF SKILL AND KNOWLEDGE AND THEN HIRE FROM THE TOP OF THE LIST BY CONTRAST MR CLINTON'S BILL WOULD HAVE THE NATIONAL BOARD DEVELOP STANDARDS THAT WOULD DETERMINE ONLY WHETHER TRAINEES AND JOB APPLICANTS FALL ABOVE OR BELOW SOME MINIMUM LEVEL OF COMPETENCE WHILE SETTING FLOORS ON SKILL QUALIFICATIONS WOULD ALLOW EMPLOYERS TO WEED OUT INCOMPETENTS THE MARGINALLY COMPETENT WOULD BE LUMPED TOGETHER WITH THE VERY BEST SUCH MINIMUM THRESHOLDS ABOVE WHICH ALL JOB APPLICANTS ARE CONSIDERED FUNGIBLE ARE PRECISELY WHAT MANY CIVILRIGHTS ADVOCATES HAVE LONG SOUGHT BECAUSE THEY MINIMIZE DISPARATE IMPACT IN ADDITION UNLIKE THE ORIGINAL BILL THE AMENDED VERSION EXPLICITLY SUBORDINATES THE SETTING OF SKILL STANDARDS TO CIVILRIGHTS LAWS IN THE PROCESS APPARENTLY GIVING A NONGOVERNMENTAL BODY STATUTORY AUTHORITY TO INTERPRET AMBIGUOUS LAWS FOR EXAMPLE THE NATIONAL BOARD WOULD ENDORSE CERTIFICATION STANDARDS THAT ARE DESIGNED TO ACHIEVE COMPLIANCE WITH THE CIVIL RIGHTS LAWS AND WOULD INFORM THEIR USERS OF THE REQUIREMENTS OF RELEVANT CIVIL RIGHTS LAWS THE AMENDED BILL ALSO EXPRESSLY REQUIRES THAT THE SKILL STANDARDS THEMSELVES THE LEVEL OF KNOWLEDGE AND SKILLS REQUIRED NOT BE DISCRIMINATORY WITH RESPECT TO RACE COLOR GENDER AND NATIONAL ORIGIN THE LEGAL DEBATE ON THE REQUIREMENTS OF THE CIVIL RIGHTS ACT OF 1991 HAS HARDLY BEGUN LET ALONE BEEN SETTLED BY THE COURTS AT THE SAME TIME THE PROCEDURES FOR DETERMINING JOBSKILL REQUIREMENTS ARE VERY ARCANE AND TECHNICAL IGNORING BOTH OF THESE DIFFICULTIES THE BILL ESTABLISHES A HIGHLY PARTISAN NATIONAL BOARD TO DEVELOP THE SKILL STANDARDS IN THE CONTEXT OF ITS OWN UNDERSTANDING OF CIVILRIGHTS LAW ALTHOUGH IT WOULD GAIN THE AUTHORITY OF SOMETHING LIKE THE NATIONAL INSTITUTE OF STANDARDS AND TECHNOLOGY THE NATIONAL SKILL STANDARDS BOARD WOULD BE MADE UP ALMOST ENTIRELY OF DEMOCRATIC APPOINTEES AND BE SUBJECT TO A CLINTON DIVERSITY QUOTA THE ADMINISTRATION'S AMENDED BILL WOULD ALSO REQUIRE THAT THE BOARD CONTAIN AT LEAST ONE CIVILRIGHTS ADVOCATE SUCH A BOARD ISN'T LIKELY TO RAISE OCCUPATIONAL SKILL LEVELS AT ALL RATHER IT CAN BE EXPECTED TO DEVELOP LOW MINIMUM STANDARDS WHICH IT WILL THEN OFFER TO EMPLOYERS AS A MEANS FOR ACHIEVING COMPLIANCE WITH RELEVANT CIVIL RIGHTS LAWS ALTHOUGH THE PROPOSED SKILLSTANDARDS SYSTEM IS OSTENSIBLY VOLUNTARY EMPLOYERS COULD IGNORE IT ONLY AT THEIR PERIL CIVIL RIGHTS LAWYERS WOULD BE WAITING IN THE WINGS TO SLAP THEM WITH EMPLOYMENT DISCRIMINATION LAWSUITS IF THEY SET SKILL STANDARDS HIGHER THAN THE NATIONAL BOARD'S UNDER CURRENT LAW DISPARATE IMPACT IN HIRING CREATES A PRIMA FACIE CASE OF ILLEGAL DISCRIMINATION THAT EMPLOYERS CAN REBUT BY SHOWING THE JOBRELATEDNESS VALIDITY OF THE SELECTION PROCEDURE IN QUESTION IF THE PLAINTIFF THEN PRESENTS AN ALTERNATIVE SELECTION PROCEDURE THAT IS EQUALLY JOBRELATED BUT HAS LESS DISPARATE IMPACT THE EMPLOYER LOSES THE CASE IN RECENT YEARS EMPLOYERS HAVE BECOME INCREASINGLY ABLE TO DEMONSTRATE THE JOBRELATEDNESS OF SELECTION PROCEDURES WITH SUBSTANTIAL DISPARATE IMPACT WHILE PLAINTIFFS HAVE BEEN HARDPRESSED TO POINT TO EQUALLY VALID ALTERNATIVES WITH LESS DISPARATE IMPACT NATIONAL BOARD SKILL STANDARDS WOULD REVERSE THAT SITUATION MANY JUDGES WOULD DEFER TO THE NATIONAL BOARD'S JUDGMENT ON SKILL STANDARDS EVEN IN THE ABSENCE OF EVIDENCE THAT ITS STANDARDS ARE APPROPRIATE JUST AS COURTS CONTINUE TO DEFER TO THE EQUAL EMPLOYMENT OPPORTUNITY COMMISSION'S ONEROUS TECHNICAL REQUIREMENTS FOR DEFENDING THE LEGALITY OF EMPLOYMENT TESTS EVEN THOUGH THOSE REQUIREMENTS CONFLICT WITH ACCEPTED PROFESSIONAL PRACTICE THUS THE NATIONAL BOARD'S SKILL STANDARDS WOULD BECOME THE ALTERNATIVE AGAINST WHICH ALL SELECTION PROCEDURES WOULD BE JUDGED EMPLOYERS WHO SET HIGHER STANDARDS THAN THE BOARD'S WOULD BE VULNERABLE TO DISCRIMINATION LAWSUITS BECAUSE MORE DEMANDING STANDARDS TEND TO HAVE MORE ADVERSE IMPACT MOREOVER SUCH EMPLOYERS CERTAINLY WOULD HAVE BEEN AWARE OF THE NATIONAL BOARD'S PUTATIVE ALTERNATIVE AND SO WOULD BE GUILTY OF INTENTIONALLY IGNORING IT IN FAVOR OF A MORE DISCRIMINATORY ONE WORSE YET LOSING A SUIT ALLEGING INTENTIONAL DISCRIMINATION AS OPPOSED TO DISPARATE IMPACT CARRIES THE RISK OF PUNITIVE DAMAGES THE NATIONAL BOARD'S VOLUNTARY FLOOR WOULD THUS BECOME THE LEGAL CEILING FOR SKILL STANDARDS IT'S UNCLEAR HOW LOW THE BOARD WOULD SET SKILL STANDARDS BUT THE STANDARDS WOULD HAVE TO BE QUITE LOW TO ELIMINATE ADVERSE IMPACT BECAUSE CURRENT SKILLS GAPS AMONG DIFFERENT RACIALETHNIC GROUPS FOR WHATEVER REASON ARE QUITE LARGE THE NATIONAL ASSESSMENT OF EDUCATIONAL PROGRESS NAEP WHICH IS CONDUCTED FOR THE DEPARTMENT OF EDUCATION BY THE EDUCATIONAL TESTING SERVICE HAS DOCUMENTED LARGE GAPS ON SPECIFIC SKILLS AND KNOWLEDGE AMONG HIGHSCHOOL STUDENTS THROUGHOUT THE 1980S FOR EXAMPLE BLACK 17YEAROLDS EXCLUDING DROPOUTS HAD PROFICIENCY LEVELS IN MATH READING SCIENCE AND OTHER SUBJECTS THAT WERE MORE COMPARABLE TO WHITE 13YEAROLDS THAN WHITE 17YEAROLDS A 1987 NAEP REPORT FOUND SIMILARLY LARGE GAPS IN THE FUNCTIONAL LITERACY OF YOUNG ADULTS AGE 21 TO 25 THE AVERAGE BLACK COLLEGE GRADUATE COULD COMPREHEND AND USE EVERYDAY READING MATERIALS SUCH AS NEWS ARTICLES MENUS FORMS LABELS STREET MAPS AND BUS SCHEDULES ONLY ABOUT AS WELL AS THE AVERAGE WHITE HIGHSCHOOL GRADUATE WITH NO COLLEGE IN TURN BLACK HIGHSCHOOL GRADUATES FUNCTIONED ON THE AVERAGE ONLY ABOUT AS WELL AS WHITES WITH NO MORE THAN EIGHT YEARS OF SCHOOLING THE PERVASIVENESS OF SUCH HUGE GAPS IN CURRENT SKILLS AND KNOWLEDGE EXPLAINS WHY EMPLOYMENT TESTS TYPICALLY HAVE DISPARATE IMPACT ESPECIALLY IN MIDTOHIGHLEVEL JOBS MR CLINTON'S ORIGINAL BILL WOULD HAVE ELIMINATED DISPARATE IMPACT BY BOOSTING THE SCORES OF LESS SKILLED GROUPS TO MEET A HIGHER COMMON STANDARD BY CONTRAST HIS AMENDED BILL WOULD SLIDE THE COMMON STANDARD DOWN TO WHERE THE LEAST SKILLED GROUPS COULD MEET IT IN EFFECT THE ADMINISTRATION HAS SIMPLY REPLACED A MANDATE FOR DOUBLESTANDARDS RACENORMING WITH ONE FOR NOSTANDARDS RACENORMING MS GOTTFREDSON IS A PROFESSOR IN THE DEPARTMENT OF EDUCATIONAL STUDIES OF THE UNIVERSITY OF DELAWARE 9306030089 930603 LETTERS TO THE EDITOR STONE THROWERS YOUR MAY 3 ARTICLE PEROT THROWS STONES AT CLINTON'S TAX PROPOSALS FROM HIS GLASS HOUSE OF EVEN LARGER INCREASES HARPS ON THE THEME THAT ROSS PEROT'S PLAN WOULD HAVE A LARGER TAX INCREASE THAN MR CLINTON'S PLAN IT IGNORES THE MAIN THRUST OF MR PEROT'S PLAN THAT THE PEOPLE HAVE NO INTEREST IN PAYING MORE TAXES JUST SO OUR ELECTED SERVANTS CAN INCREASE SPENDING WHILE THE FEDERAL DEBT CONTINUES TO INCREASE MR PEROT AND MY WIFE AND I BELIEVE THE PEOPLE WILL ACCEPT ADDITIONAL TAXES ONLY IF THEY WILL BE USED TO BALANCE THE BUDGET AND PAY OUR CURRENT FEDERAL DEBT PROVIDED THE FEDERAL GOVERNMENT SETS THE EXAMPLE FOR SACRIFICE BY CUTTING ITS EXPENSES 9306030088 930603 MARKETING BRIEF NOTED CBS NEWS THE PAIRING OF DAN RATHER AND CONNIE CHUNG AS COANCHORS OF THE CBS EVENING NEWS BROUGHT BIG HEADLINES BUT DREW ONLY A MODEST BOOST IN RATINGS FOR THE TEAM'S FIRST NIGHT ACCORDING TO PRELIMINARY AC NIELSEN CO FIGURES BASED ON OVERNIGHT RATINGS IN 26 MAJOR CITIES TUESDAY NIGHT'S HALFHOUR NEWSCAST DREW 88 OF THE HOUSEHOLDS IN THOSE MARKETS UP FROM 82 A WEEK EARLIER ABC'S WORLD NEWS TONIGHT STILL LED IN THE RATINGS WITH 103 OF HOUSEHOLDS DOWN FROM 104 WHILE NBC NIGHTLY NEWS HAD 66 FLAT COMPARED WITH THE WEEK EARLIER 9306030087 930603 BUSINESS BRIEF WR GRACE & CO TENDER OFFER IS COMPLETED FOR HOME INTENSIVE CARE WR GRACE & CO SAID IT COMPLETED ITS 1222 MILLION TENDER OFFER TO PURCHASE HOME INTENSIVE CARE INC GRACE OF BOCA RATON FLA SAID 135 MILLION SHARES WERE TENDERED IN ITS 660ASHARE OFFER REPRESENTING AN 858 STAKE IN HOME INTENSIVE THE OFFER TERMINATED TUESDAY NIGHT AS PREVIOUSLY DISCLOSED CERTAIN HOME INTENSIVE DIRECTORS AND OFFICERS OWNING 75 OF ITS SHARES WERE RESTRICTED FROM TENDERING THEIR SHARES A GRACE SPOKESMAN SAID THE COMPANY AIMS TO ACQUIRE THOSE SHARES FOR 660 WHEN THE RESTRICTIONS END IT ALSO AIMS TO BUY REMAINING SHARES AT THAT PRICE WHEN IT COMPLETES THE MERGER IN JULY 9306030086 930603 AIR CANADA TO APPEAL AGENCY'S DECISION ON AMRPWA PACT MONTREAL AIR CANADA SAID IT PLANS TO ASK CANADA'S CABINET TO REVIEW LAST WEEK'S DECISION BY THE COUNTRY'S NATIONAL TRANSPORTATION AGENCY TO APPROVE A PROPOSED PARTNERSHIP AGREEMENT BETWEEN AMERICAN AIRLINES AND STRUGGLING CANADIAN AIRLINES INTERNATIONAL THE AGREEMENT WOULD ALLOW AMR CORP THE PARENT OF AMERICAN TO BUY A 33 EQUITY INTEREST WITH 25 VOTING RIGHTS IN CANADIAN AIRLINES FOR 246 MILLION CANADIAN DOLLARS US193 MILLION CANADIAN IS A UNIT OF PWA CORP CALGARY ALBERTA EVEN IF THE TRANSPORTATION AGENCY'S DECISION IS UPHELD CANADIAN WON'T BE ABLE TO COMPLETE ITS DEAL WITH AMERICAN UNLESS IT ALSO FINDS A WAY TO BREAK ITS CONTRACTUAL COMMITMENT TO A COMPUTERIZED RESERVATION SYSTEM IT SHARES WITH AIR CANADA AND SHIFT ITS BUSINESS TO AMR'S COMPUTER SYSTEM A CONDITION SET BY AMR AIR CANADA YESTERDAY REBUFFED PWA'S CALL FOR A NEGOTIATED SOLUTION TO THE CONTRACT DISPUTE WHICH THE TWO COMPANIES HAVE BEEN FIGHTING OVER IN COURT 9306030085 930603 INTERNATIONAL BRIEF TOTAL SA FIRSTHALF OPERATING PROFIT IS UNLIKELY TO TOP '92 LEVEL TOTAL SA'S CHAIRMAN SERGE TCHURUK SAID THE POOR ECONOMIC CONDITIONS THAT HURT LAST YEAR'S RESULTS CONTINUE TO WEIGH ON FIRSTHALF 1993 OPERATING PROFIT MR TCHURUK TOLD SHAREHOLDERS THAT DATA FOR THE FIRST FOUR MONTHS OF 1993 INDICATE THAT FIRSTHALF OPERATING PROFIT WILL BE AT OR SLIGHTLY BELOW THE FIRST HALF OF 1992 LEVEL OF 34 BILLION FRANCS 6328 MILLION HE SAID THE FRENCH COMPANY'S EXPLORATION AND PRODUCTION ACTIVITIES SHOW RESULTS COMPARABLE TO THE 1992 LEVEL REFLECTING RELATIVE STABILITY IN VOLUMES PRODUCED AND IN PRICE REFINING AND DISTRIBUTION ALSO IS SHOWING COMPARABLE RESULTS THE OFFICIAL SAID TOTAL HAD NET INCOME OF 285 BILLION FRANCS IN 1992 DOWN FROM 581 BILLION FRANCS IN 1991 REFLECTING A WEAKER DOLLAR REFINING MARGINS AND POOR DEMAND 9306030084 930603 MARKETING & MEDIA CAPITAL CITIES TIME TAKE OPPOSING VIEWS ON RETRANSMISSIONS' NEW YORK TWO OF THE TELEVISION INDUSTRY'S BIGGEST PLAYERS WEIGHED IN YESTERDAY ON OPPOSITE SIDES OF THE LOOMING BATTLE OVER PROGRAMMING FEES THAT LOCAL TV STATIONS CAN SOON BEGIN DEMANDING FROM CABLE SYSTEMS THE MOVES FURTHER SET THE STAGE FOR A FALL SHOWDOWN CAPITAL CITES/ABC INC SAID ITS EIGHT TELEVISION STATIONS WOULD INSIST ON BEING PAID IF THEIR PROGRAMMING IS CARRIED ON LOCAL CABLE SYSTEMS INVOKING THE NEW RULES GOVERNING RETRANSMISSION CONSENT BUT TIME WARNER INC'S CABLE SUBSIDIARY THE NATION'S SECONDLARGEST OPERATOR SEPARATELY RELEASED A STATEMENT RULING OUT ANY SUCH PAYMENTS TO BROADCASTERS THE TIME WARNER CABLE STATEMENT ISSUED BY THE UNIT'S CHAIRMAN JOSEPH J COLLINS SAID THE CABLE OPERATOR DOESN'T FORESEE ANY CIRCUMSTANCES UNDER WHICH ITS SYSTEMS WOULD PAY BROADCASTERS FOR RETRANSMISSION CONSENT UNDER NEW FEDERAL REGULATIONS LOCAL STATIONS MUST TELL CABLE SYSTEMS BY JUNE 17 WHETHER THEY WANT TO BE PAID FOR THEIR SIGNAL OR INSTEAD WANT GUARANTEED CARRIAGE ON THE CABLE SYSTEM WITHOUT CHARGING A FEE KNOWN AS THE MUST CARRY OPTION IF A STATION CHOOSES RETRANSMISSION BUT CAN'T REACH AN AGREEMENT BY OCT 6 WITH THE CABLE SYSTEM ON TERMS OF PAYMENT IT RISKS BEING DROPPED FROM THE CABLE SYSTEM BOTH GENERAL ELECTRIC CO'S NBC STATIONS AND CBS INC'S STATIONS HAVE SAID THEY ALSO WILL ASK FOR NEW PROGRAMMING FEES BUT THE NATION'S LARGEST CABLE OPERATOR TELECOMMUNICATIONS INC HAS SAID IT WON'T MAKE STRAIGHT CASH PAYMENTS 9306030083 930603 BUSINESS BRIEF ZALE CORP LOSS SHRANK TO 181 MILLION BUT SALES FELL IN FISCAL '93 ZALE CORP OPERATING UNDER BANKRUPTCYCOURT PROTECTION FOR MORE THAN A YEAR REPORTED A FISCAL 1993 LOSS OF 181 MILLION COMPARED WITH A LOSS OF 9604 MILLION A YEAR EARLIER SALES AT THE IRVING TEXAS JEWELRY RETAILER FELL TO 9808 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 DOWN 15 FROM 12 BILLION A YEAR EARLIER WHEN ZALE OPERATED ABOUT 650 MORE STORES ZALE CURRENTLY HAS 1270 RETAIL LOCATIONS IT IS OWNED BY PEOPLES JEWELLERS LTD OF TORONTO AND SWAROVSKI INTERNATIONAL HOLDING AG OF SWITZERLAND A FEDERAL BANKRUPTCY JUDGE HAS CONFIRMED A REORGANIZATION PLAN FOR THE COMPANY WHICH HAS BEEN IN CHAPTER 11 PROCEEDINGS SINCE JANUARY 1992 THE COMPANY SAID IT EXPECTS TO EMERGE FROM BANKRUPTCY COURT PROTECTION BY MIDSUMMER 9306030082 930603 INTERNATIONAL BRIEF METALLGESELLSCHAFT AG GERMAN FIRM'S PRETAX PROFIT FELL 39 IN 6MONTH PERIOD GERMANY'S METALLGESELLSCHAFT AG REPORTED THAT GROUP PRETAX PROFIT PLUNGED 39 IN THE FIRST SIX MONTHS OF THE FISCAL YEAR THAT BEGAN OCT 1 1992 THE TRADING METALS AND ENGINEERING GROUP BLAMED WEAK WORLD METALS PRICES THE SOFT DOLLAR AGAINST THE GERMAN MARK AND GERMANY'S RECESSIONPLAGUED AUTOMOBILE INDUSTRY FOR THE DROP IN PROFIT METALLGESELLSCHAFT SAID CONSOLIDATED GROUP PRETAX PROFIT DROPPED TO 983 MILLION MARKS 62 MILLION FROM 1615 MILLION MARKS IN THE SAME PERIOD A YEAR EARLIER GROUP SALES ROSE 19 TO 138 BILLION MARKS 87 BILLION FROM 116 BILLION MARKS THE SECOND HALF OF THE FISCAL YEAR WILL ALSO BE MARKED BY NEGATIVE ECONOMIC TRENDS THE COMPANY'S MANAGING BOARD WROTE IN A STATEMENT THE ONLY IMPROVEMENTS IN PROFITABILITY WILL STEM FROM THE COMPANY'S COSTCUTTING MEASURES AND ANY NEWFOUND EFFICIENCIES IT WROTE 9306030081 930603 CALIFORNIA MAY TRIM WORKER COMPENSATION MINIMUM INSURE RATE LOS ANGELES CALIFORNIA'S INSURANCE COMMISSIONER JOHN GARAMENDI SAID HE IS CONSIDERING REDUCING THE STATE'S MINIMUM WORKERS' COMPENSATION INSURANCE RATE BY A RANGE OF 7 TO 10 MR GARAMENDI SAID A FINAL DECISION WON'T COME UNTIL AFTER A JULY 21 HEARING ON THE MATTER BUT IN A STATEMENT HE ARGUED THAT A RATE ROLLBACK IS JUSTIFIED BECAUSE WORKERS COMPENSATION LOSSES FROM JOBRELATED INJURIES DECLINED TO 76 FROM 88 OF EVERY PREMIUM DOLLAR BETWEEN 1991 AND 1992 FOR AN ESTIMATED SAVINGS OF 1 BILLION COSTS HAVE CONTINUED TO FALL THIS YEAR MR GARAMENDI SAID EMPLOYERS IN CALIFORNIA LONG HAVE GROUSED ABOUT HIGH WORKERS' COMPENSATION RATES SO EVEN THE HOPE OF SOME RELIEF WAS GREETED WITH ENTHUSIASM THIS IS DEFINITELY GOOD NEWS DEFINITELY A MOVE IN THE RIGHT DIRECTION SAID A SPOKESMAN FOR THE CALIFORNIA MANUFACTURERS ASSOCIATION EVEN IF THE STATE DECREASES THE MINIMUM RATE INSURERS CAN STILL CHARGE MORE BUT MR GARAMENDI THINKS THERE IS ENOUGH COMPETITION THAT A DECREASE IN THE MINIMUM WILL FORCE ACTUAL PRICES DOWN A SPOKESMAN SAID 9306030080 930603 BUSINESS BRIEF ROCHESTER COMMUNITY SAVINGS BANK POTENTIAL SUITOR IS REJECTED FIRM TO REMAIN INDEPENDENT ROCHESTER COMMUNITY SAVINGS BANK REBUFFING AN UNSOLICITED INDICATION OF INTEREST SAID IT INTENDS TO REMAIN INDEPENDENT FOR THE PRESENT TIME THE ROCHESTER NY CONCERN SAID IN A NEWS RELEASE THAT IT HAD CONCLUDED THAT THE BEST STRATEGY FOR MAXIMIZING LONGTERM SHAREHOLDER VALUE WAS TO PURSUE AN INDEPENDENT PATH THE STATECHARTERED SAVINGS BANK ANNOUNCED MAY 5 IT WAS EVALUATING AN UNSOLICITED INDICATION OF INTEREST FROM AN UNIDENTIFIED PARTY ROCHESTER COMMUNITY SAVINGS SAID IT WILL ACCELERATE THE REDUCTION OF NONPERFORMING ASSETS AND RAISE ADDITIONAL CAPITAL THROUGH AN OFFERING OF CONVERTIBLE PREFERRED STOCK THE COMPANY SAID THE MOVES WILL REQUIRE A SIGNIFICANT ADDITION TO RESERVES TO BE DETERMINED DURING THE THIRD QUARTER 9306030079 930603 BUSINESS BRIEF ACUSON CORP FIRM TO LAY OFF 250 TAKE CHARGE FOR RESTRUCTURING THE MOUNTAIN VIEW CALIF COMPANY ALSO SAID IT WILL REPORT AN UNSPECIFIED LOSS FOR THE QUARTER ON SALES IN THE RANGE OF 70 MILLION TO 80 MILLION IN THE YEARAGO PERIOD ACUSON EARNED 11 MILLION ON SALES OF 877 MILLION ACUSON WHICH MAKES MEDICAL ULTRASOUND PRODUCTS BLAMED THE CUTBACKS ON THE WEAK ECONOMY AND PENDING REFORMS IN THE HEALTHCARE SYSTEM THESE CUTS PUT US IN A POSITION TO BE PROFITABLE GOING FORWARD SAID A COMPANY SPOKESMAN ACUSON'S SHARES FELL 75 CENTS TO 11 IN LATE NEW YORK STOCK EXCHANGE TRADING 9306030075 930603 LEISURE & ARTS BOOKSHELF THE ULTIMATE SPHINX BY FAREED ZAKARIA AMERICAN SECRETARIES OF STATE GENERALLY COME IN TWO VARIETIES PHARAOHS AND SPHINXES THE PHARAOHS ARE WITTY AND ARTICULATE GLOBETROTTERS BRIMMING WITH STRATEGIC THEORIES AND BON MOTS WHO OFTEN OVERSHADOW THE PRESIDENTS THEY SERVE SPHINXES ARE POKERFACED DIPLOMATS WHOSE DISCRETION MAKES THEM SEEM A LITTLE DULL YOU HAVE ONLY TO COMPARE HENRY KISSINGER WITH DEAN RUSK TO SEE WHAT I MEAN THAT GEORGE SHULTZ WAS UNQUESTIONABLY A SPHINX NO ONE WHO EVER WATCHED ON TELEVISION HIS MADDENINGLY DELIBERATE SPEAKING STYLE WOULD CONTEST THIS THUS HIS MEMOIRS TURMOIL AND TRIUMPH MY YEARS AS SECRETARY OF STATE SCRIBNERS 1184 PAGES 30 HAVE BEEN ANTICIPATED IN PART BECAUSE THEY MIGHT FINALLY SHED SOME LIGHT ON WHAT RONALD REAGAN'S SOLEMN SECRETARY OF STATE HAD BEEN THINKING MR SHULTZ WAS AMERICA'S PRINCIPAL DIPLOMAT DURING SOME OF THE MOST TUMULTUOUS YEARS IN RECENT HISTORY AND HIS VERSION OF THESE EVENTS COULD BE IMPORTANT IT IS EVEN THOUGH THIS OVERLY DETAILED BOOK LACKS THE ANALYTIC FOCUS THAT WOULD MAKE IT TRULY COMPELLING ANY INDIVIDUAL'S CONTRIBUTION TO THE OVERALL REAGAN POLICY IS DIFFICULT TO MEASURE THE REAGAN ADMINISTRATION HAD MANY STRATEGIES AND MANY STRATEGISTS ALL COMPETING FOR THE PRESIDENT'S ATTENTION IN A CHAOTIC ENTREPRENEURIAL FASHION OFTEN WITH EMBARRASSING RESULTS HOWEVER PERHAPS THROUGH SHEER STEADINESS AND PERSISTENCE MR SHULTZ TURNED HIMSELF INTO THE MOST IMPORTANT FIGURE IN THE ADMINISTRATION AFTER MR REAGAN HIMSELF AT THE BROADEST LEVEL THE USSOVIET RIVALRY MR SHULTZ EXPLAINS THAT HIS POSITION WAS ESSENTIALLY THAT OF MR REAGAN THE ADMINISTRATION'S APPROACH TOWARD THE ADVERSARY WAS PREMISED ON THE ASSUMPTION THAT THE SOVIET UNION WAS MILITARILY STRONG BUT ECONOMICALLY WEAK THE STRATEGY THUS WAS TO MUSCLE UP AMERICAN DIPLOMACY AND DEFENSE IN ORDER TO DRIVE UP THE COSTS OF SOVIET EXPANSIONISM THE ANALYSIS WAS CORRECT IN A REVEALING MOMENT IN 1985 MIKHAIL GORBACHEV TOLD MR SHULTZ YOU ARE FULL OF ILLUSIONS FIRST YOU BELIEVE THAT THE SOVIET UNION IS LESS ECONOMICALLY POWERFUL AND THEREFORE IT WOULD BE WEAKENED BY AN ARMS RACE SECOND THAT YOU HAVE HIGHER TECHNOLOGY AND THEREFORE SDI WOULD GIVE YOU SUPERIORITY THESE ARE ALL ILLUSIONS WITH HIS INSECURE BLUSTER MR GORBACHEV HAD UNWITTINGLY SHOWN MR SHULTZ HIS HAND MR SHULTZ CANNOT CLAIM MUCH CREDIT FOR THE FIRST PHASE OF MR REAGAN'S POLICY CONFRONTING THE SOVIET UNION WITH WEAPONS AND WORDS IT ORIGINATED IN THE LONGHELD VIEWS OF MR REAGAN AND DOZENS OF PEOPLE IN HIS ADMINISTRATION BUT FROM 1985 ONWARD MR SHULTZ MARGARET THATCHER AND MR REAGAN WERE AMONG A SMALL GROUP OF WESTERN STATESMEN WHO REALIZED THAT MR GORBACHEV WAS A NEW KIND OF SOVIET LEADER WHO WAS NOT MERELY OFFERING ANOTHER ROUND OF FAKE CONCESSIONS OR TEMPORARILY REGROUPING TO PREPARE FOR A NEW OFFENSIVE ONE OTHER IMPORTANT ISSUE BEARS MR SHULTZ'S FINGERPRINTS DEMOCRATIZATION AND HUMAN RIGHTS WHEN DEALING WITH REPRESSIVE REGIMES ABROAD THE CARTER ADMINISTRATION'S HUMANRIGHTS POLICY HAD BEEN TO FOCUS ON GOVERNMENT BRUTALITY TOWARD INDIVIDUALS POLICE BEATINGS TORTURE AND ECONOMIC DEPRIVATIONS RATHER THAN ON BROADER QUESTIONS OF POLITICAL RIGHTS MR SHULTZ REVERSED THESE PRIORITIES RESPONDING TO SPECIFIC JURIDICAL ABUSES AND INDIVIDUAL CASES IS IMPORTANT BUT THEY WERE REALLY THE SURFACE OF THE PROBLEM THE ESSENCE OF THE PROBLEM IS THE KIND OF POLITICAL STRUCTURE THAT MAKES HUMANRIGHTS ABUSES POSSIBLE NOT ONLY DID THE SECRETARY OF STATE SET UP VARIOUS PROJECTS AND CAMPAIGNS FOR DEMOCRACY BUT HE APPLIED THE LOGIC OF DEMOCRATIZATION ALBEIT RATHER GENTLY TO AMERICA'S FRIENDS THE ADMINISTRATION'S QUIET BUT PERSISTENT PRODDING OF ITS ALLIES IN SOUTH KOREA THE PHILIPPINES AND LATIN AMERICA TOWARD POLITICAL REFORM IS A TEXTBOOK EXAMPLE OF HOW TO MINGLE IDEALISM AND REALISM IN FOREIGN POLICY AMERICA'S VICTORY IN THE COLD WAR WAS MARKED BY THREE TURNING POINTS THE MOST IMPORTANT WAS THE TRUMAN ADMINISTRATION'S STRATEGY OF CONTAINMENT WHICH EIGHT PRESIDENTS WOULD FOLLOW THE SECOND WAS RICHARD NIXON'S OPENING TO CHINA THE MOST IMPORTANT SHIFT IN THE BALANCE OF POWER DURING THE COLD WAR THE THIRD WAS MR REAGAN'S FINAL OFFENSIVE WHICH FORECLOSED ANY OPTION BUT REFORM ON THE SOVIET NOMENKLATURA NOT COINCIDENTALLY EACH OF THESE PERIODS WAS WITNESS TO A STRONG SECRETARY OF STATE THE FIRST DEAN ACHESON THE SECOND MR KISSINGER AND THE THIRD MR SHULTZ FURTHERMORE THE TWO MOST IMPORTANT MEMOIRS OF THEIR KIND WERE ACHESON'S PRESENT AT THE CREATION AND MR KISSINGER'S TWOVOLUME REMINISCENCES ALAS MR SHULTZ HAS NOT ADDED A THIRD LEG TO THE TRIANGLE HE WAS A FIRSTRATE SECRETARY OF STATE HE CONDUCTED AMERICAN FOREIGN POLICY WITH STRENGTH SUBTLETY AND DIGNITY HE IS NOT HOWEVER A CONCEPTUALIZER HE IS MOVED BY INSTINCT AND COMMON SENSE RATHER THAN STRATEGIES AND THEORIES HE HAS NEITHER MR KISSINGER'S ANALYTIC FLAIR NOR ACHESON'S WIT AND LITERARY STYLE AS A RESULT TURMOIL AND TRIUMPH WHILE HONEST INSIGHTFUL AND IMPORTANT WILL NOT RANK AS A CLASSIC IN THE LITERATURE OF THE COLD WAR MR SHULTZ'S ACHIEVEMENTS WILL BE MEASURED IN DEEDS NOT WORDS MR ZAKARIA IS MANAGING EDITOR OF FOREIGN AFFAIRS MAGAZINE 9306030074 930603 TECHNOLOGY ELECTRONICS SHOW PLUGS INTO MULTIMEDIA BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL ABOUT 20 YEARS AGO RICHARD LOVISOLO WAS SELLING ONE OF THE HOTTEST ITEMS IN CONSUMER ELECTRONICS CASSETTE TAPE PLAYERS TODAY WHEN MR LOVISOLO NOW A PANASONIC VICE PRESIDENT ARRIVES AT THE SUMMER CONSUMER ELECTRONICS SHOW IN CHICAGO HE WILL BE PLUGGING WHAT MAY BE THE LATEST HOT PRODUCT PANASONIC'S REAL 3DO INTERACTIVE MULTIPLAYER AN ELABORATE HOME MULTIMEDIA MACHINE THAT ATTACHES TO A TV SET AND USES TECHNOLOGY LICENSED FROM 3DO CO MR LOVISOLO'S 700 MULTIPLAYER WON'T SELL FAST OR IN BIG NUMBERS TO START BUT NO MATTER THE NEWAGE DEVICE FROM PANASONIC A UNIT OF MATSUSHITA ELECTRIC INDUSTRIAL CO IS ONE OF AN ARRAY OF PRODUCTS AT THE SHOW THAT REPRESENT A FUNDAMENTAL SHIFT IN THE 40 BILLION US CONSUMER ELECTRONICS INDUSTRY ONCEDOMINANT PRODUCT LINES STEREO RECEIVERS VCR DECKS AND TV SETS ARE LOSING THE LIMELIGHT TO ITEMS LIKE DIGITAL HANDHELD ORGANIZERS AND COMMUNICATORS COMPUTERIZED MULTIMEDIA PLAYERS AND VIDEO GAMES PLAYED ON VIRTUAL REALITY HEADSETS WHILE COLOR TV SETS CAR STEREOS AND PORTABLE WALKMANTYPE PLAYERS STILL ACCOUNT FOR A MAJORITY OF INDUSTRY SALES THOSE MARKETS ARE SATURATED WITH LOOKALIKE PRODUCTS AND PRICE COMPETITION IS FIERCE AS A RESULT ESTABLISHED MANUFACTURERS ARE BETTING ON NEW MULTIMEDIA DEVICES WITH HIGH PRICE TAGS WHILE OUTSIDERS SUCH AS APPLE COMPUTER INC ARE HUSTLING TO GAIN A FOOTHOLD IN CONSUMER ELECTRONICS WITH PORTABLE COMPUTERIZED AND DIGITAL MACHINES THE CHANGE IS EVIDENT ON THE FLOOR OF THE SHOW RUNNING CONCURRENTLY WITH THE HUGE ELECTRONICS BAZAAR IS A PERSONAL COMMUNICATIONS AND COMPUTING SHOW FEATURING PRODUCTS FOR THE NASCENT MARKET FOR HANDHELD PENBASED PERSONAL DIGITAL ASSISTANTS WHICH CAN SEND FAXES CALL UP EMAIL AND ACT AS CELLULAR PHONES FOR SOME THE MARKETPLACE IS CHANGING IN OTHER WAYS SHARP CORP A NOSHOW IN CHICAGO IS SHIFTING EMPHASIS WITHIN ITS CONSUMER ELECTRONICS GROUP SHARP IS MOVING AWAY FROM THE MID TO LOWEND POSITION IT HAD IN CONSUMER ELECTRONICS IN THE 1980S AND INTO MORE UPMARKET PRODUCTS SUCH AS ITS OWN PERSONAL DIGITAL ASSISTANT YOU ARE SEEING THE BEGINNINGS OF A NEW CONSUMER ELECTRONICS INDUSTRY SAYS DONALD F JOHNSTONE PRESIDENT AND CHIEF EXECUTIVE OF PHILIPS CONSUMERS ELECTRONICS CO A UNIT OF PHILIPS ELECTRONICS NV CONSUMERS WILL BE ABLE TO SEE AND HEAR ANYTHING THEY WANT ANYWHERE THEY WANT IT THIS COULD MEAN THE START OF REJUVENATION FOR THE INDUSTRY THE INDUSTRY COULD USE A BOOST IN MAY SONY CORP AND MATSUSHITA JAPAN'S LARGEST MAKERS OF CONSUMER ELECTRONICS POSTED SHARP DECLINES IN GROUP EARNINGS IN PART BECAUSE OF SATURATED MARKETS SIGNALING THAT THE INDUSTRY'S FOURYEAR SLUMP HASN'T ENDED THOUGH MAJOR MANUFACTURERS ARE MOST VEXED BY SLOW SALES IN JAPAN AND EUROPE US SALES HAVE ALSO WEAKENED IN SOME HISTORICALLY DEPENDABLE CATEGORIES AT THE SHOW THE ELECTRONIC INDUSTRIES ASSOCIATION IS PROJECTING THAT US SALES WILL INCREASE A HEALTHY 6 IN 1993 TO ABOUT 40 BILLION BUT THERE ARE WEAKNESSES IN 1992 SALES OF AUDIO COMPONENTS SUCH AS STEREO RECEIVERS AND TAPE DECKS FELL 12 IN THE FIRST QUARTER THE CATEGORY WAS STILL DOWN 5 WHILE SALES OF VCR DECKS GREW A PUNY 02 AUDIO WEEK AN INDUSTRY NEWSLETTER RECENTLY REPORTED THAT 1992 FACTORY UNIT SALES FOR HOME CD DECKS FELL 15 WHILE UNIT SALES OF TAPE CASSETTE DECKS FELL 19 THE SLUMP COULD WELL BE PROLONGED BY THE FACT THAT THE NEW PRODUCTS WITH POTENTIAL TO APPEAL TO A BROAD AUDIENCE ARE STILL SELLING IN SMALL UNRECORDABLE AMOUNTS AT THE SHOW BOTH SONY AND PHILIPS WILL SHOW NEW VERSIONS OF THEIR DIGITAL AUDIO SYSTEMS BUT THEY CARRY HIGH PRICES AND SOME WORRY ABOUT WHETHER CONSUMERS REALLY WANT THE NEW GADGETRY A LOT OF WHAT YOU SEE IS BEING DRIVEN BY TECHNOLOGY FOR TECHNOLOGY'S SAKE SAYS MICHAEL FIDLER A SENIOR VICE PRESIDENT AT PIONEER ELECTRONICS USA A UNIT OF PIONEER ELECTRONIC CORP CONSUMERS SEE A PROLIFERATION OF FORMATS AND WONDER WHERE THE TANGIBLE BENEFITS ARE YET PIONEER IS IN THE RACE TOO WITH A NEW LASERACTIVE PLAYER A MULTIMEDIA MACHINE THAT PLAYS INTERACTIVE GAMES MOVIES AND EDUCATIONAL PROGRAMS PIONEER WILL UNVEIL THE FIRST WORKING MODELS IN CHICAGO AND SHIP THEM TO STORES IN THE FALL AT A PRICEY 1000 OR MORE PIONEER IS VYING AGAINST AT LEAST TWO OTHER COMPANIES WHOSE OPTICAL DISKBASED MACHINES ARE ATTEMPTING TO CAPTURE PEOPLE'S NASCENT INTEREST IN MULTIMEDIA NONE HAS SET THE WORLD ON FIRE AND THEY AREN'T COMPATIBLE BUT THE GADGETS CLEARLY FUSE HIGHTECH ASPECTS OF COMPUTERS WITH THE ENTERTAINMENT PROVIDED BY CONSUMER ELECTRONICS PANASONIC'S 3DO MACHINE WILL BE SUPPORTED BY MORE THAN A HALF DOZEN SOFTWARE COMPANIES AT ITS LAUNCH IN OCTOBER ONE GAME IN DEVELOPMENT IS STAR TREK THE NEXT GENERATION THE GAME FROM SPECTRUM HOLOBYTE HAS THE LOOK OF THE STAR TREK TV SERIES WITH COMPUTERGENERATED ACTORS THE VOICES OF THE ACTUAL ACTORS IN THE SERIES AND AN ORIGINAL SCRIPT BUT PHILIPS ELECTRONICS IS RAISING THE STAKES IN THE MARKET FOR MORE THAN A YEAR WITH ITS COMPACT DISCINTERACTIVE MACHINE OR CDI PHILIPS EXECUTIVES SAID LAST NIGHT THEY HAD STRUCK A DEAL WITH PARAMOUNT COMMUNICATIONS INC TO PUT PARAMOUNT MOVIES ON FIVEINCH CDI DISKS THE MOVIES WILL PLAY ONLY ON CDI MACHINES EQUIPPED WITH A NEW 250 PLUGIN CARTRIDGE ALSO UNVEILED LAST NIGHT THAT ALLOWS CDI MACHINES TO PLAY FULLMOTION FULLSCREEN VIDEO THE CARTRIDGE WILL REACH STORES IN THE FALL AND THE MOVIES FROM PARAMOUNT PICTURES' HOME VIDEO DIVISION SHOULD BE ON SALE BY CHRISTMAS OTHER NEW FULLMOTION DISKS INCLUDE THE FIRST INTERACTIVE WORKOUT VIDEO AND MUSIC VIDEO TITLES FROM STING AND TINA TURNER FOR SOME THE CHICAGO SHOW WILL BE A CHANCE TO REINTRODUCE MULTIMEDIA MACHINES IN NEW SKINS SONY HAS SET ITSELF UP IN CHICAGO HOTEL SUITES WHERE IT WILL UNVEIL A REENGINEERED VERSION OF ITS ELECTRONIC BOOK SYSTEM THE DATA DISCMAN WHICH PLAYS SMALL CDS PACKED WITH VOLUMES OF TEXT AND GRAPHICS AND HOURS OF AUDIO RECORDINGS THE NEW MODELS WILL HAVE BUILTIN SPEAKERS LARGER SCREENS AND LOWER PRICES THE ORIGINAL DISCMAN SOLD FOR 600 BUT THE NEW PRICES RANGE FROM 230 TO 550 NEW DISCMAN TITLES REFLECT AN ATTEMPT TO DRAW STUDENTS PRICED UNDER 40 THEY INCLUDE THE MONARCH NOTES STUDYAID SERIES AND HOW TO WRITE TERM PAPERS AND REPORTS THE PRODUCT THAT MAY PAY THE MOST RESPECT TO THE ELECTRONICS SHOW'S PAST AND STILL INCLUDE A NOD TO THE FUTURE COMES FROM SEGA ENTERPRISES LTD SEGA WILL SHOW THE 5 BILLION US VIDEO GAME INDUSTRY'S FIRST FULLCOLOR VIRTUAL REALITY HEADSET TAKING HOME VIDEO GAMES INTO A NEW INTERACTIVE REALM CALLED SEGA VR THE HELMETLIKE GIZMO IS EQUIPPED WITH STEREO HEADPHONES THAT HOOK UP TO SEGA'S GENESIS GAME SYSTEM IT PLACES THE PLAYER IN A 360DEGREE GAME WORLD WITH THREEDIMENSIONAL PERSPECTIVE SEGA SAYS AT LEAST FOUR VIRTUAL REALITY TITLES FEATURING SHOOTING FLYING DRIVING AND FANTASY ACTION SHOULD BE OUT THIS YEAR THE GAMES COME WITH MOVIELIKE RATINGS TO GUIDE PARENTS PRICED AT UNDER 200 SEGA VR WILL BEGIN SMALL SHIPMENTS JUST BEFORE CHRISTMAS 9306030073 930603 BUSINESS BRIEF AZTAR CORP FIRM AGREES ON PURCHASE GIVING IT ALL OF TROPWORLD AZTAR CORP SAID IT HAS AGREED TO BUY THE LIMITED PARTNERSHIP INTERESTS OF AMBASSADOR REAL ESTATE INVESTORS LP WHICH HOLDS A PARTIAL INTEREST IN AZTAR'S ATLANTIC CITY NJ CASINO FOR ABOUT 58 MILLION AZTAR SAID THE AGREEMENT IS CONDITIONED ON THE TENDER OF AT LEAST 667 OF AMBASSADOR REAL ESTATE'S LIMITED PARTNERSHIP INTERESTS AMONG OTHER THINGS AZTAR EXPECTS TO FINANCE ABOUT 20 MILLION OF THE ACQUISITION COST ALTHOUGH THE AMBASSADOR TRANSACTION WILL AFFECT AZTAR'S NET EARNINGS BECAUSE OF AN INCREASE IN DEPRECIATION EXPENSE THE COMPANY WOULD OWN ALL OF ITS MOST IMPORTANT ASSET THE TROPWORLD CASINO IN ATLANTIC CITY THE DEBT REMAINING ON THE PROPERTY WILL BE 170 MILLION PRINCIPAL AMOUNT OF 135 FIRST MORTGAGE BONDS CALLABLE AT PAR IN FALL 1994 PAUL E RUBELI AZTAR'S CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE ALSO SAID THE PHOENIX COMPANY IS INTERESTED IN EXPANDING BEYOND ITS THREE CASINOS IN LAS VEGAS AND LAUGHLIN NEV AND ATLANTIC CITY AND INTENDS TO SUBMIT A PROPOSAL TO OPERATE A CASINO IN WINDSOR ONTARIO IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY AZTAR ROSE 625 CENTS TO 850 9306030072 930603 BUSINESS BRIEF GENERAL MOTORS CORP CANADIAN TRUCK PLANT TO ADD THIRD SHIFT 666 EMPLOYEES GENERAL MOTORS CORP APPROVED THE CREATION OF A THIRD SHIFT AT THE COMPANY'S TRUCK PLANT IN OSHAWA ONTARIO GEORGE PEAPPLES PRESIDENT OF GENERAL MOTORS OF CANADA LTD SAID THE SHIFT IS NEEDED TO MEET EVERGROWING DEMAND FOR THE COMPANY'S PICKUP TRUCKS THE SHIFT WILL BEGIN IN EARLY AUGUST AND WILL CREATE 666 JOBS GM SAID IN A STATEMENT THAT A NEW PACT WITH UNION EMPLOYEES WAS A KEY FACTOR IN APPROVING THE ADDED PRODUCTION WORKERS LAST WEEK APPROVED THE AGREEMENT WHICH WILL MEAN SLIGHTLY FEWER HOURS AND LESS OVERTIME FOR CURRENT EMPLOYEES THE OSHAWA TRUCK PLANT CURRENTLY PRODUCES 200000 EXTENDED CAB PICKUPS AN NUALLY A GM SPOKESMAN WOULDN'T SAY HOW MANY ADDITIONAL TRUCKS THE COMPANY PLANS TO PRODUCE 9306030071 930603 BUSINESS BRIEF DEVON ENERGY CORP ESTIMATES OF GAS RESERVES TO BOOST 1993 NET INCOME DEVON ENERGY CORP SAID IT EXPECTS 1993 NET INCOME TO INCREASE BY 15 MILLION TO 19 MILLION OR SEVEN CENTS TO NINE CENTS A SHARE BASED ON REVISED ESTIMATES OF CERTAIN NATURAL GAS RESERVES BASED IN OKLAHOMA CITY DEVON IS AN OIL AND GAS EXPLORATION AND PRODUCTION COMPANY A 25 TO 40 INCREASE IN RESERVES OF A NATURAL GAS FIELD IN NORTHWESTERN NEW MEXICO WILL BOOST COMPANYWIDE OIL AND GAS RESERVES TO THE RANGE OF 400 TO 416 EQUIVALENT BILLION CUBIC FEET FROM 3678 EQUIVALENT BILLION CUBIC FEET IN 1992 THE COMPANY SAID THE NEW ESTIMATE INCREASES THE NATURAL GAS RESERVES TO THE RANGE OF 160 TO 175 BILLION CUBIC FEET FROM 1272 BILLION CUBIC FEET AS OF YEAREND 1992 THE ESTIMATES CONCERN THE COMPANY'S INTEREST IN THE NATURAL GAS FIELD NORTHEAST BLANCO UNIT IN NEW MEXICO FOR 1992 DEVON EARNED 73 MILLION OR 37 CENTS A SHARE ON 281 MILLION IN REVENUE HOWEVER A COMPANY SPOKESMAN SAID 1993 EARNINGS WILL INCLUDE AN ENTIRE YEAR'S RESULTS FROM THE ACQUISITION OF HONDO OIL & GAS CO'S US PROPERTIES 9306030070 930603 BUSINESS BRIEF ANADARKO PETROLEUM CORP NATURAL GAS AND OIL CONCERN PLANS TO REDEEM DEBENTURES ANADARKO PETROLEUM CORP SAID IT IS REDEEMING ITS OUTSTANDING 100 MILLION PRINCIPAL AMOUNT 625 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2014 THE REDEMPTION DATE IS JULY 2 HOLDERS ARE ENTITLED TO RECEIVE FOR EACH 1000 PRINCIPAL AMOUNT OF DEBENTURES A TOTAL 104566 WHICH INCLUDES AN EARLYCALL PREMIUM OF 3750 A DEBENTURE AND ACCRUED INTEREST FROM MAY 15 TO THE REDEMPTION DATE OF 816 A DEBENTURE HOLDERS MAY CONVERT THEIR DEBENTURES INTO ANADARKO COMMON STOCK AT A CONVERSION PRICE OF 3420 A SHARE BASED ON ANADARKO'S JUNE 1 CLOSING PRICE OF 43 A SHARE THAT WOULD PROVIDE DEBENTURE HOLDERS WITH 125731 OF VALUE FOR EACH 1000 PRINCIPAL AMOUNT OF DEBENTURES THE NATURAL GAS AND CRUDE OIL EXPLORATION AND PRODUCTION COMPANY SAID CONVERSION OF THE DEBENTURES INTO COMMON STOCK WOULD REDUCE DEBT BY 100 MILLION OR 36 OF THE COMPANY'S TOTAL CAPITALIZATION THE CONVERSION ALSO WOULD INCREASE THE HOUSTON COMPANY'S TOTAL SHARES OUTSTANDING BY 53 OR APPROXIMATELY 29 MILLION SHARES 9306030069 930603 MEDICINE VOTE SETS BACK P&G SYNTEX ON ANALGESIC BY GABRIELLA STERN AND ROSE GUTFELD STAFF REPORTERS OF THE WALL STREET JOURNAL A JOINT FOOD AND DRUG ADMINISTRATION ADVISORY COMMITTEE RECOMMENDED AGAINST GRANTING MARKETING APPROVAL TO AN OVERTHECOUNTER VERSION OF THE PAIN RELIEVER NAPROSYN THE REJECTION DEALT A BLOW TO PROCTER & GAMBLE CO AND SYNTEX CORP WHICH PLANNED TO MARKET THE PRODUCT IN A JOINT VENTURE P&G HAS BEEN TRYING TO ENTER THE ANALGESICS MARKET FOR YEARS TO SUPPLEMENT ITS CHEST OF OVERTHECOUNTER PRODUCTS WHILE SYNTEX WHICH MAKES THE DRUG FOR PRESCRIPTION USE BADLY NEEDS A GROWTH PRODUCT TO BOOST EARNINGS ANALYSTS SAID THE FDA WHICH IS EXPECTED TO RULE ON THE APPLICATION BY YEAR END ISN'T BOUND BY THE JOINT COMMITTEE'S VOTE AND COULD CHOOSE TO APPROVE THE APPLICATION HOWEVER THE FDA TYPICALLY FOLLOWS ADVISORY COMMITTEE RECOMMENDATIONS THIS IS A MAJOR SETBACK FOR SYNTEX BECAUSE THE COMPANY'S PORTFOLIO OF NOTYETMARKETED DRUGS IS RELATIVELY SHALLOW SAID RON NORDMANN AN ANALYST WITH PAINEWEBBER MR NORDMANN SAID SYNTEX BASED IN PALO ALTO CALIF WILL FACE FLAT OR SLIGHTLY DECLINING EARNINGS FOR THE NEXT THREE YEARS IT WAS HOPED SHORTLY THEREAFTER THAT THE OTC VERSION OF THIS NEW IMPORTANT ANALGESIC WOULD STIMULATE SYNTEX'S EARNINGS GROWTH HE SAID FOR P&G FDA APPROVAL WOULD PROVIDE AN IMPORTANT FOOTHOLD IN THE 27 BILLION OVERTHECOUNTER PAIN RELIEVER MARKET SOMETHING THE CINCINNATIBASED CONSUMER PRODUCTS COMPANY TRIED WHEN IT MARKETED ENCAPRIN A COATED ASPIRIN IN CAPSULE FORM IN THE MID1980S ENCAPRIN WHICH WAS INTRODUCED AMID THE FLURRY OF IBUPROFEN DRUGS LIKE ADVIL FLOPPED AND WAS PULLED FROM SHELVES IN 1986 JUST TWO YEARS AFTER IT WAS INTRODUCED IN THE OVERTHECOUNTER BUSINESS P&G IS VERY STRONG IN COUGH AND COLD BUT ONE BIG HOLE IS ANALGESICS NAPROSYN WAS A VALUEADDED UNIQUE TYPE OF PRODUCT SAID JOSEPH H KOZLOFF ANALYST WITH SMITH BARNEY IN A JOINT NEWS RELEASE P&G AND SYNTEX VOWED TO CONTINUE TO PRESS THE MATTER WITH THE FDA WE ARE DISAPPOINTED BUT WILL CONTINUE TO WORK WITH THE FDA ON ITS EVALUATION OF OUR NEW DRUG APPLICATION SAID PAUL E FREIMAN SYNTEX CHAIRMAN AND CHIEF EXECUTIVE OFFICER IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY SYNTEX SHARES TUMBLED 125 TO CLOSE AT 1975 WHILE COMMON STOCK OF GIANT P&G ROSE 125 CENTS TO CLOSE AT 4950 A SHARE THE 74 VOTE CAME ON THE SECOND DAY OF MEETINGS IN BETHESDA MD OF THE ARTHRITIS AND OVERTHECOUNTER DRUGS ADVISORY COMMITTEES TO THE FDA THE VOTE INDICATED THE COMMITTEES FELT THE COMPANIES HADN'T PRESENTED SUFFICIENT DATA SHOWING THE DRUG COULD BE SAFELY MARKETED OVERTHECOUNTER PANEL MEMBERS QUESTIONED AMONG OTHER ISSUES WHETHER PATIENTS MIGHT REACT TO THE SLOW ONSET OF THE DRUG BY TAKING EXCESSSIVE AMOUNTS BRINGING THE DOSE UP TO PRESCRIPTION LEVEL SOME MEMBERS ALSO SAID THEY WERE CONCERNED ABOUT THE SODIUM LEVEL IN THE DRUG AND HOW IT WOULD BE MARKETED FOR THE ELDERLY THE DEVELOPMENT RAISES BROADER QUESTIONS ABOUT FDA STANDARDS IN SWITCHES TO NONPRESCRIPTION STATUS MOST BIG PHARMACEUTICAL COMPANIES ARE TRYING TO SWITCH DRUGS TO THE OVERTHECOUNTER CATEGORY AS A SOURCE OF NEW REVENUE AT A TIME WHEN PRESCRIPTION DRUG REVENUES ARE UNDER PRESSURE YESTERDAY'S VOTE COULD MEAN THAT IT WILL BE MORE DIFFICULT FOR THE COMPANIES TO WIN SWITCH APPROVALS NAPROSYN WAS CLOSELY WATCHED BY THE INDUSTRY BECAUSE IT IS THE FIRST OF A STRING OF BIG DRUGS INCLUDING OTHER ANTIINFLAMMATORY PAIN KILLERS SUCH AS CIBAGEIGY'S VOLTAREN ULCER DRUGS SUCH AS SMITHKLINE BEECHAM'S TAGAMET AND MERCK & CO'S PEPCID AND NICOTINE PATCHES THAT ARE TARGETED FOR SWITCHES TO OVERTHECOUNTER STATUS STILL THE VOTE MAY HAVE ELICITED SIGHS OF RELIEF FROM RIVAL MAKERS OF PAIN RELIEVERS THEY HAVE BEEN BOOSTING SPENDING ON ADVERTISING AND PROMOTION IN ANTICIPATION OF NAPROSYN'S RELEASE IF APPROVED BY THE FDA IT WOULD BE THE FIRST OVERTHECOUNTER PAIN RELIEVER CONTAINING A NEW ANALGESIC INGREDIENT SINCE IBUPROFEN RECEIVED FDA APPROVAL IN 1984 SYNTEX WHICH HAS ABOUT 2 BILLION IN ANNUAL SALES MAKES AND MARKETS DERMATOLOGICAL CREAMS CONTRACEPTIVE PILLS HEART MEDICATION AND OTHER PRESCRIPTION MEDICINE THE COMPANY SAYS AN OVERTHECOUNTER VERSION OF NAPROSYN BY FAR ITS BIGGEST PRESCRIPTION PRODUCT WOULD BE ITS FIRST MAJOR NONPRESCRIPTION ITEM PROCTERSYNTEX HEALTH PRODUCTS CO A 5050 JOINT VENTURE FORMED IN 1988 WAS ALREADY MOVING AHEAD ON MARKETING PLANS FOR AN OVERTHECOUNTER VERSION OF NAPROSYN WHICH WOULD CONTAIN NAPROXEN THE ACTIVE INGREDIENT IN NAPROSYN PLUS SODIUM P&G HAD ALREADY HIRED AN AD AGENCY D'ARCY MASIUS BENTON & BOWLES TO HANDLE CONSUMER ADVERTISING AND SYNTEX HAD RETAINED SAN FRANCISCOBASED VICOM FCB A UNIT OF FOOTE CONE & BELDING TO MANAGE ADVERTISING TO PHYSICIANS IF THE FDA REJECTS THE APPLICATION THE COMPANIES COULD CONDUCT ADDITIONAL STUDIES OR TAKE OTHER STEPS TO BOLSTER THEIR APPLICATION AND TRY AGAIN THE AGENCY ALSO COULD APPROVE THE DRUG SUBJECT TO SOME POSTMARKETING STUDIES ELYSE TANOUYE CONTRIBUTED TO THIS ARTICLE 9306030068 930603 BUSINESS BRIEF INTERNATIONAL COLIN ENERGY CORP COMPANY TO PAY 35 MILLION TO ACQUIRE OLYMPIA ENERGY INTERNATIONAL COLIN ENERGY CORP SAID IT AGREED TO BUY CLOSELY HELD OLYMPIA ENERGY VENTURES LTD FOR 445 MILLION CANADIAN DOLLARS US35 MILLION THE COMPANY SAID IT EXPECTS THE TRANSACTION TO CLOSE JUNE 30 INTERNATIONAL COLIN AN ENERGY COMPANY BASED IN CALGARY ALBERTA SAID IT INTENDS TO FINANCE THE ACQUISITION THROUGH BANK DEBT AND THE PLACEMENT OF 500000 SPECIAL WARRANTS AT C2065 US1624 EACH THE COMPANY SAID THE PLACEMENT HAS BEEN COMPLETED SUBJECT TO REGULATORY APPROVAL THE ACQUISITION WOULD BOOST INTERNATIONAL COLIN'S OIL PRODUCTION BY 415 BARRELS A DAY TO ABOUT 7715 BARRELS A DAY AND WOULD ADD 14 MILLION CUBIC FEET A DAY OF GAS PRODUCTION THE COMPANY ESTIMATED INTERNATIONAL COLIN SAID IT DOESN'T PRODUCE GAS NOW ALTHOUGH IT EXPECTS TO OBTAIN NINE MILLION CUBIC FEET OF DAILY GAS PRODUCTION THROUGH A PREVIOUSLY ANNOUNCED ACQUISITION THAT IT ALSO EXPECTS TO CLOSE JUNE 30 OLYMPIA IS A CALGARYBASED OIL AND GAS PRODUCER WITH ASSETS CONCENTRATED IN NORTHWESTERN ALBERTA IT OPERATES FOUR GAS PROCESSING PLANTS AND HAS 36000 ACRES OF OIL AND GAS PROPERTIES 9306030066 930603 LETTERS TO THE EDITOR LET'S USE TAX TERMS AMERICANS UNDERSTAND YOUR MAY 11 ARTICLE WHICH GAUGE TO USE DELAYS TREASURY CONFIRMATION CONFUSES TWO UNRELATED POINTS IT QUOTES FROM A JOINT ECONOMIC COMMITTEE REPUBLICAN STUDY ON REAL FAMILY INCOME IN ORDER TO MAKE A CONNECTION WITH QUESTIONS OF WHERE THE TAX BURDEN FALLS UNDER THE CLINTON ECONOMIC PLAN THE KEY ISSUE IS THE ADMINISTRATION'S REFUSAL TO PRESENT ITS TAX INCREASES IN TERMS WITH WHICH THE AMERICAN PEOPLE ARE FAMILIAR WHEN ANY PERSON OUTSIDE WASHINGTON THINKS ABOUT HOW MUCH THEY EARN AND WHO WILL PAY MORE TAXES THEY THINK OF IT IN TERMS OF ADJUSTED GROSS INCOME IN THE CITED REPUBLICAN JEC STUDY THE QUOTED SENTENCES ARE TAKEN OUT OF CONTEXT FROM A FOURPAGE TECHNICAL DISCUSSION OF ISSUES RELATED TO MEASUREMENT OF REAL CAPITAL GAINS IN INFLATIONADJUSTED INCOME FEW OUTSIDE OF OFFICIAL QUASIACADEMIC CIRCLES IN WASHINGTON THINK IN TERMS OF FAMILY ECONOMIC INCOME FEI WHILE FEI CAN BE USED IN TAX ANALYSIS THE TREASURY DEPARTMENT ALREADY PUBLISHES MOST OF ITS INCOME TAX DATA IN TERMS OF ADJUSTED GROSS INCOME AGI SO THERE IS NO REASON FOR FAILING TO COMPLY WITH THE REQUEST MADE BY SENS ROTH MOYNIHAN AND MYSELF FOR THE BREAKDOWN OF THE CLINTON TAX PLAN ON AMERICANS ACCORDING TO AGI IT IS DISINGENUOUS FOR THE ADMINISTRATION TO MARKET ITS PLAN USING AN INCOME MEASURE MISLEADING TO MOST PEOPLE THIS CAVALIER ATTITUDE TOWARD THE ENGLISH LANGUAGE IS PART OF A DISTURBING TREND ON THE PART OF THIS ADMINISTRATION 9306030065 930603 FED UP EMBOLDENED SICILIANS LEAD THE REBELLION AGAINST COSA NOSTRA SOME MERCHANTS NOW REFUSE TO PAY PROTECTION MONEY AND INFORMERS PROLIFERATE SECRET VILLAS ON PUBLIC LANDS BY PETER GUMBEL AND LISA BANNON STAFF REPORTERS OF THE WALL STREET JOURNAL CORLEONE SICILY CRISTINA GIACCONE KNOWS THE DEEP HOLD THE MAFIA HAS HAD FOR GENERATIONS ON SICILY HER COUSIN PAOLO A YOUNG FORENSIC DOCTOR WAS SHOT DEAD OUTSIDE A PALERMO HOSPITAL AFTER HE REFUSED A MAFIA DEMAND TO TAMPER WITH MEDICAL EVIDENCE YET MS GIACCONE 17 IS HELPING OUT AT A LOCAL NEWSPAPER THAT IS FIERCELY CRITICAL OF THE MAFIA IN SCHOOL SHE SAYS STUDENTS TALK OF LITTLE ELSE BUT THE MAFIA AND ITS NEFARIOUS WAYS LAST DECEMBER SHE TOOK PART IN ONE OF THE FIRST ANTIMAFIA DEMONSTRATIONS EVER HELD IN CORLEONE THE SUNBAKED RURAL VILLAGE THAT WAS A SETTING OF MARIO PUZO'S NOVEL THE GODFATHER AND IS IN REAL LIFE THE STRONGHOLD OF THE MOST DANGEROUS MAFIA BOSSES WE AREN'T TRYING TO CHANGE OTHERS MS GIACCONE SAYS WE ARE TRYING TO CHANGE SOMETHING IN OURSELVES WE WANT TO SHOW WE ARE NOT AFRAID HER DEFIANCE IS PART OF A GROWING PUBLIC REVOLT AGAINST THE COSA NOSTRA BY A NEW AND BETTEREDUCATED GENERATION OF SICILIANS ALIENATED BY MOB TERROR DRUGDEALING AND CORRUPTION IN WHAT WOULD HAVE BEEN SUICIDAL FIVE YEARS AGO SHOPKEEPERS IN MORE THAN 20 COMMUNITIES AROUND SICILY HAVE GROUPED TOGETHER AND ARE REFUSING TO PAY PROTECTION MONEY IN SOME CASES EVEN TAKING THE EXTORTIONISTS TO COURT MEANWHILE ACROSS ITALY SOME 200 EMBITTERED FORMER MAFIOSI ARE DEFYING THE MAFIA'S TRADITIONS OF SILENCE AND CLAN LOYALTY BY TURNING STATE'S WITNESS AND TESTIFYING AGAINST THEIR FORMER COLLEAGUES THEIR EVIDENCE HAS LED TO THE CAPTURE OF SEVERAL LEADING MAFIOSI NOT SEEN IN YEARS OR DECADES INCLUDING NO 1 BOSS SALVATORE TOTO RIINA WHOSE TRADEMARK ACCORDING TO PALERMO POLICE WAS TO STRANGLE HIS VICTIMS AND DISSOLVE THEIR CORPSES IN VATS OF ACID THE ALLEGED NO 2 MAN WAS CAUGHT TWO WEEKS AGO AND HIS DEPUTY WAS ARRESTED YESTERDAY AND FOR THE FIRST TIME IN RECENT HISTORY ITALY'S PROSECUTORS ARE TARGETING THE LINKS BETWEEN POLITICIANS AND MAFIA THAT CITIZENS HAVE CLAIMED FOR YEARS WAS A KEY TO THE PROBLEM SICILIAN MAGISTRATES HAVE ARRESTED OR INVESTIGATED HUNDREDS OF PUBLIC OFFICIALS IN ROME NO LESS A FIGURE THAN GIULIO ANDREOTTI SEVEN TIMES ITALY'S CHRISTIAN DEMOCRATIC PRIME MINISTER IS UNDER INVESTIGATION FOR ALLEGED MOB TIES NO ONE WOULD EVEN SUGGEST THE MAFIA IS DEFEATED IT MAY BE STRIKING BACK THROUGH PUBLIC TERROR AUTHORITIES BELIEVE THE MOB SET OFF THE BOMB THAT DEVASTATED THE UFFIZI GALLERY AND KILLED FIVE PEOPLE IN FLORENCE LAST WEEK AND YESTERDAY ROME POLICE FOUND A BOMB RIGGED FOR REMOTECONTROL DETONATION INSIDE A CAR PARKED A BLOCK FROM THE PRIME MINISTER'S OFFICE IT TOO COULD HAVE BEEN THE WORK OF THE MOB WE'RE ON THE RIGHT TRACK BUT WE'RE ONLY AT THE BEGINNING SAYS IGNAZIO DE FRANCISCI A PALERMO MAGISTRATE FOR WHAT HAS BEEN ACHIEVED CREDIT A FEDUP POPULACE PARTICULARLY IN SICILY SAYS PINO ARLACCHI A ROMEBASED AUTHORITY ON THE MAFIA THE PROCESS STARTED FROM THE CITIZENS AND THE CITIZENS ARE OBLIGING THE STATE TO CONTINUE THE SICILIAN MAFIA'S ROOTS PENETRATE DEEP INTO LOCAL COMMUNITIES WHERE IT HAS TRADITIONALLY PROVIDED JOBS MONEY AND A SORT OF SECURITY IN RETURN FOR THE CONNIVANCE AND SILENCE OF THE LOCAL POPULATION THIS COOPERATION BASED ON FEAR RESPECT AND FAVORS ALLOWED IT TO OPERATE WITH NEARIMPUNITY EVEN TODAY FOR EVERY STORE OWNER WHO REFUSES TO MAKE PAYOFFS DOZENS MORE QUIETLY CONTINUE DOING SO BLOODY MAFIA WARS OF THE EARLY 1980S TAKING AT LEAST 1000 LIVES SUBTLY CHANGED THE MOOD AND THE LAST STRAW FOR MANY WAS THE KILLING LAST YEAR OF ITALY'S TWO LEADING ANTIMAFIA JUDGES IN PALERMO GIOVANNI FALCONE AND PAOLO BORSELLINO CITIZENS JEERED POLITICIANS WHO ATTENDED MR FALCONE'S FUNERAL AND ON THE RECENT ANNIVERSARY OF HIS SLAYING 150000 PEOPLE ONEQUARTER OF PALERMO'S POPULATION DEMONSTRATED IN THE STREETS IN CAPO D'ORLANDO A PATROLLING TRUCK OF ARMED FEDERAL TROOPS PROVIDES A TELLTALE SIGN OF ANTIMAFIA REVOLT THE TOWN A TRANQUIL SEASIDE RESORT HAS BEEN UNDER POLICE SURVEILLANCE SINCE LOCAL SHOPKEEPERS BANDED TOGETHER TO DENOUNCE A MOB EXTORTION RACKET TWO YEARS AGO IT WASN'T A QUESTION OF COURAGE IT WAS PLAIN OLD BUSINESS SAYS LUIGI SCHIFANO OWNER OF A DOWNTOWN GIFT SHOP IF WE PAID WE'D GO BANKRUPT IF WE RESISTED THE MAFIA WOULD FORCE US TO CLOSE DOWN IN OTHER WAYS WE HAD NOTHING TO LOSE THE THREATS HAD STARTED SUBTLY IN OCTOBER 1990 THEY WOULD CALL CONSTANTLY AND ASK FOR 300 MILLION LIRE WHICH IS A TOTALLY RIDICULOUS AMOUNT OF MONEY I'D JUST HANG UP THE PHONE RECALLS FRANCESCO SIGNORINO 43 THE OWNER OF A RENAULT CAR DEALERSHIP ON THE OUTSKIRTS OF TOWN WHO WAS THE FIRST TO BE PRESSURED AFTER HE REFUSED TO PAY THE EXTORTION MONEY KNOWN HERE AS PIZZO THE PROBLEMS BEGAN A CAR WAS STOLEN FROM HIS LOT THEN ONE WAS SET ON FIRE THEN ANOTHER ONE NIGHT THE BUILDING WHERE MR SIGNORINO LIVES WITH HIS WIFE AND TWO CHILDREN WAS SHOT UP WITH BULLETS HE REPORTED EACH INCIDENT TO THE LOCAL POLICE WHO ASKED HIM TO COOPERATE TO GET MORE EVIDENCE AGAINST THE MAFIOSI WHEN THE CALLERS SET UP A MEETING BETWEEN MR SIGNORINO AND THE LOCAL BOSS THE POLICE FOLLOWED HIM THERE COVERTLY I WAS SO NERVOUS I THOUGHT I'D DIE BUT I DECIDED THIS WAS THE ONLY SOLUTION THERE WAS HE RECALLS MY FATHER WHO HAD A LUMBER BUSINESS AND IS NOW 85 YEARS OLD PAID THE PIZZO ALL HIS LIFE I ALWAYS SAID I WOULDN'T I DIDN'T WANT ANYONE TO OWN ME LIKE THAT THE MEETING WITH THE MAFIA BOSS ARMANDO CRAXI MERELY STRENGTHENED HIS RESOLVE ONCE I SAW HIM I WASN'T SCARED ANYMORE THE GUY WAS SHORTER THAN ME AND OLDER TOO MR SIGNORINO SAYS WITH A DEFIANT SHRUG I WASN'T PAYING HIM A LIRA AND I LEFT MR CRAXI WAS KILLED SOON AFTERWARD IN A WAR OF TWO MAFIA CLANS BUT A NEW BOSS DEMANDED PROTECTION MONEY BY THEN HOWEVER POLICE HAD ENOUGH EVIDENCE AND ARRESTED 21 SUSPECTS 15 OF WHOM HAVE BEEN CONVICTED AND JAILED THIS REMAINS A DANGEROUS GAME TWO SHOPKEEPERS ELSEWHERE WERE SLAIN IN NOVEMBER AFTER REPORTING EXTORTION TO THE POLICE IT ONLY WORKED HERE BECAUSE WE HAD THE COOPERATION OF THE LOCAL POLICE THE PREFECT AND ALL THE OTHER SHOPKEEPERS SAYS MR SCHIFANO PUFFING ON A CIGAR SOME OTHER TOWNS DON'T HAVE THAT IN PALERMO FOR EXAMPLE MAGISTRATES ARE TAKING 40 SHOPKEEPERS TO COURT THIS MONTH FOR PERJURY THEY WERE AFRAID TO ADMIT THEY WERE PAYING THE PIZZO EVEN THOUGH A LEDGER WITH THEIR MONTHLY PAYMENTS WAS FOUND IN THE HOME OF A BOSS DRIVE ABOUT 10 MILES SOUTH OF CATANIA TO A LARGE STATEOWNED PARK BY THE SEA AND THE DIFFICULTIES OF FIGHTING THE MAFIA BECOME APPARENT THIS IS A PROTECTED AREA OF RARE WETLANDS MUCH LIKE THE EVERGLADES A STOPPING PLACE FOR MIGRATORY BIRDS AND A FAVORITE RESORT FOR MAFIOSI WHO HAVE BUILT CLUSTERS OF LUXURY VILLAS ON STATEOWNED PROPERTY ALONG THE SHORE IN DEFIANCE OF STRICT ZONING LAWS ELIANA RASERA A LOCAL ACTIVIST ROARS DOWN THE WINDING PARK ROAD BEHIND A POLICE ESCORT UNTIL THE ROAD ENDS INTO A RED IRON GATE AT THE ENTRANCE TO ONE COMPOUND THE POLICEMAN GETS OUT NERVOUS ARE YOU SURE YOU WANT TO GO IN HE ASKS THERE COULD BE SOME TROUBLE AFTER SOME PROMPTING HE ASKS PERMISSION FROM THE COMPOUND'S CUSTODIAN THEN DRIVES IN THE VILLAS MAY HAVE BEEN BUILT WITHOUT AUTHORIZATION BUT IT IS CLEAR THAT PUBLIC AUTHORITIES HELPED OUT SURROUNDED BY HIGH STEEL FENCES WITH ALARM SYSTEMS THEY ARE NEATLY LAID OUT IN THREE ROWS ALL HAVE ELECTRICITY AND TELEPHONES AND THE ROADS INSIDE THE COMPOUND ARE WELL PAVED THE AREA RECEIVES DAILY POSTAL SERVICE IT'S ABSURD MS RASERA RAGES ENZO BIANCO ONCE TRIED TO DO SOMETHING ABOUT THIS AND MAY AGAIN HE IS A FORMER MAYOR OF CATANIA AND LEADING CANDIDATE TO REGAIN THE POST IN ELECTIONS THIS MONTH AS MAYOR IN 198889 MR BIANCO SIGNED AN ORDER TO DEMOLISH SOME 300 UNINHABITED OR UNFINISHED VILLAS OF AN ESTIMATED 2500 ILLEGAL STRUCTURES ON STATE PROPERTY HE RECALLS THE ASTONISHMENT OF CITY BUREAUCRATS WHEN HE ASKED WHEN THE DEMOLITIONS WOULD START THEY SAID DO YOU KNOW WHO OWNS THOSE HOUSES' I KNEW VERY WELL THEY WERE SOME OF THE BIGGEST CRIME FAMILIES IN SICILY BUT I PRETENDED I DIDN'T KNOW SIGNING A DEMOLITION ORDER IT TURNED OUT WAS A FORMALITY BY WHICH AUTHORITIES TRADITIONALLY PROTECTED THEMSELVES FROM CHARGES OF ABUSE OF OFFICE THERE WERE 12 SEPARATE OFFICES TO HANDLE DEMOLITION PERMITS SO IT WAS EASY FOR THE PROCESS TO BE STOPPED HE SAYS BUT MR BIANCO PUSHED FORWARD THROUGH THE HURDLES THROWN UP BY THE CITY BUREAUCRACY ON THE DAY OF THE SCHEDULED DEMOLITIONS YET ANOTHER OBSTACLE WAS CREATED THEY TOLD ME THE CITY WRECKING BALL WAS BROKEN HE COMPLAINED ON LOCAL TV ABOUT THE BUREAUCRATIC FOOTDRAGGING AND THE WRECKING BALL WAS MIRACULOUSLY FIXED BUT AS IT SET ABOUT KNOCKING DOWN 50 OF THE VILLAS MORE NEW ONES WERE GOING UP CAN YOU IMAGINE THAT HAPPENING IN AMERICA MR BIANCO ASKS INDIGNANTLY IF SICILY ISN'T AMERICA IT ISN'T HOLLYWOOD'S VERSION OF SICILY EITHER CORLEONE ITSELF HAS NO LUXURY VILLAS JUST ROWS OF FORBIDDING PASTELCOLORED HOUSES ALONG NARROW WINDING STREETS OLD MEN IN GRAY SUITS AND FLAT CAPS SIT ON BENCHES GLARING AT PASSING STRANGERS AT NO 13 VIA RUA DEL PIANO ON THE CORNER OF TWO COBBLESTONE ALLEYS WITH A SMALL SHRINE TO THE MADONNA SET INTO THE WALL LIVES THE 80YEAROLD MOTHER OF SALVATORE RIINA THE FORMER MAFIA BOSS OF ALL BOSSES NOW UNDER ARREST MR RIINA IS ALLEGED BY PALERMO MAGISTRATES TO HAVE MASTERMINDED A BRUTAL CONSOLIDATION OF POWER BY THE CORLEONESE CLAN INSIDE THE COSA NOSTRA THAT CAUSED MORE THAN 500 DEATHS IN A DECADE HE MAY BE IN JAIL BUT HIS FOUR CHILDREN STILL ATTEND SCHOOL IN TOWN HIS WIFE SHOPS AT THE LOCAL SUPERMARKETAND TWO DEPUTIES ARE AT LARGE THE RIINAS ATTEND SUNDAY MASS AT SANTA ROSALIA CHURCH WHERE GIROLAMO LIGGIO FIRST COUSIN OF CONVICTED MAFIA CAPO LUCIANO LIGGIO IS THE PARISH PRIEST THE PRESENCE OF HIS FAMILY HERE KIND OF BREAKS THE MOMENTUM FOR CHANGE ADMITS DINO PATERNOSTRO BUT IF YOU DON'T TAKE RISKS NOTHING WILL CHANGE MR PATERNOSTRO IS DIRECTOR OF CORLEONE'S NEW ANTIMAFIA NEWSPAPER CITTA NUOVE OR NEW CITIES A FOCAL POINT FOR LOCAL PROTEST IT OPERATES OUT OF TWO ROOMS OFF THE MAIN VILLAGE SQUARE THEY ARE DECORATED WITH POSTERS DECLARING THE MAFIA KILLS BUT HOPE DOESN'T DIE AND MAFIASHAME MR PATERNOSTRO ENJOYS A CERTAIN LOCAL NOTORIETY AT THE CENTRAL BAR PROPRIETOR GIUSEPPE RUGGIRELLO SHRUGS WITH CONTEMPT WHEN HE ENTERS MR PATERNOSTRO HELPED ORGANIZE ANTIMAFIA PROTESTS SUCH AS THE DECEMBER DEMONSTRATION BY MS GIACCONE AND HER SCHOOL FRIENDS HE CAUSED A STORM LAST YEAR WHEN HE HAD POSTERS PRINTED THAT DEPICTED PALERMO'S THENMAYOR A NATIVE CORLEONESE AS A MAFIA KILLER BUT SINCE THEN THAT MAYOR AND CORLEONE'S ENTIRE CITY COUNCIL HAVE BEEN FORCED TO RESIGN AFTER FEDERAL INVESTIGATORS BEGAN A PROBE OF SUSPECTED MAFIA INFILTRATION THERE HAVE BEEN MANY OTHER CHANGES AT A BOOKSTORE NEXT TO THE TOWN HALL ANTIMAFIA BOOKS ARE PROMINENTLY DISPLAYED IN THE FRONT WINDOW ELEMENTARY AND HIGH SCHOOLS IN CORLEONE NOW DISCUSS THE LOCAL MAFIA IN CLASS MR PATERNOSTRO ADMITS THAT TO BE HONEST MOST PEOPLE HERE ARE INDIFFERENT ABOUT THE MAFIA THE PROTESTERS ARE A SMALL GROUP BUT HE ADDS THE KEY IS THAT THEY'RE THE YOUNG PEOPLE THEY ARE CORLEONE'S FUTURE 9306030064 930603 INTERNATIONAL SOUTH KOREAN TRADE DEFICIT SEOUL SOUTH KOREA SOUTH KOREA'S TRADE DEFICIT NARROWED TO 172 MILLION IN MAY FROM 590 MILLION IN THE YEAREARLIER MONTH THE FIFTH CONSECUTIVE MONTH OF SHRINKAGE IN THE DEFICIT THE MINISTRY OF TRADE INDUSTRY AND ENERGY SAID IN A PRELIMINARY REPORT BASED ON THE CUSTOMS CLEARANCE BASIS THE NATION'S MAY EXPORTS ROSE 68 TO 677 BILLION FROM THE YEAR EARLIER'S 634 BILLION WHILE IMPORTS AMOUNTED TO 694 BILLION A PALTRY 02 RISE FROM 693 BILLION 9306030063 930603 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 HERCULES INC 75 MILLION OF NOTES DUE JUNE 1 2003 PRICED AS 6625S AT 99925 TO YIELD 6635 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 058 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR 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 JP MORGAN SECURITIES INC PUBLIC SERVICE CO OF OKLAHOMA 50 MILLION 65 FIRST MORTGAGE BONDS DUE JUNE 1 2005 PRICED AT 99088 TO YIELD 661 TO MATURITY THE PROCEEDS OF THE OFFERING TO BE MANAGED BY MERRILL LYNCH & CO WILL BE USED TO REFUND THE UNIT'S 50 MILLION PRINCIPAL AMOUNT OF 875 FIRST MORTGAGE BONDS DUE JUNE 1 2005 AT 10332 OF PRINCIPAL AMOUNT PUBLIC SERVICE IS A UNIT OF CENTRAL & SOUTH WEST CORP A UTILITY HOLDING COMPANY SOUTH CAROLINA ELECTRIC & GAS 100 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 1 2023 PRICED AS 7625S AT 99704 TO YIELD 765 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 075 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S AND SINGLEA BY S&P THE ISSUE WILL BE SOLD THROUGH UNDERWRITERS LED BY PAINEWEBBER INC SOUTH CAROLINA ELECTRIC & GAS IS A UNIT OF SCANA CORP WEST PENN POWER CO 102 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 1 1998 WON IN COMPETITIVE BIDDING BY DEALERS LED BY MORGAN STANLEY & CO AND REOFFERED AS 55S AT 99545 TO YIELD 5606 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 035 PERCENTAGE POINT ABOVE THE TREASURY FIVEYEAR NOTE THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P WEST PENN POWER IS A UNIT OF ALLEGHENY POWER SYSTEM INC WEST PENN POWER CO 80 MILLION OF FIRST MORTGAGE BONDS DUE JUNE 1 2003 WON IN COMPETITIVE BIDDING BY A GROUP OF DEALERS LED BY GOLDMAN SACHS & CO AND REOFFERED AS 6375S AT 99401 TO YIELD 6457 ACCORDING TO MCM CORPORATEWATCH THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 04 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR NOTE THE ISSUE IS RATED DOUBLEA3 BY MOODY'S AND SINGLEAPLUS BY S&P ALLSTATE CORP INITIAL OFFERING OF 785 MILLION SHARES PRICED AT 27 APIECE THROUGH UNDERWRITERS LED BY GOLDMAN SACHS & CO ALLEGHENY COUNTY PA 145940000 OF AIRPORT REVENUE BONDS FOR PITTSBURGH INTERNATIONAL AIRPORT TENTATIVELY PRICED BY A SMITH BARNEY HARRIS UPHAM & CO GROUP TO YIELD FROM 295 IN 1994 TO 607 IN 2023 THE BONDS ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P THERE ARE 37570000 SERIES 1993A REFUNDING BONDS THAT ARE MBIAINSURED 32545000 SERIES 1993B REFUNDING BONDS THAT ARE FGICINSURED AND 75825000 SERIES C NEW MONEY BONDS THAT ARE FSAINSURED AUSTIN TEX 2655 MILLION OF COMBINED UTILITY SYSTEMS REVENUE REFUNDING BONDS SERIES 1993A TENTATIVELY PRICED BY A LEHMAN BROTHERS GROUP TO YIELD FROM 36 IN 1995 TO 595 IN 2010 THERE ARE 199830000 IN BONDS RATED SINGLEA BY BOTH MOODY'S AND S&P AND 657 MILLION IN MBIAINSURED BONDS RATED TRIPLEA BY THE TWO RATINGS AGENCIES DADE COUNTY FLA 1575 MILLION OF PUBLIC FACILITIES REVENUE BONDS FOR JACKSON MEMORIAL HOSPITAL SERIES 1993 TENTATIVELY PRICED BY A LEHMAN BROTHERS GROUP TO YIELD FROM 28 IN 1994 TO 5787 IN 2018 THERE ARE ALSO BONDS DUE 2023 THAT ARE PRICED TO YIELD 577 THE BONDS ARE MBIAINSURED AND ARE RATED TRIPLEA BY BOTH MOODY'S AND S&P NEBRASKA HIGHER EDUCATION LOAN PROGRAM INC 1354 MILLION OF TAXEXEMPT BONDS TENTATIVELY PRICED BY A MORGAN STANLEY & CO GROUP TO YIELD FROM 5 IN 1998 TO 645 IN 2018 THE OFFERING CONSISTS OF 30 MILLION IN 19932 SERIES A5A SENIOR SUBORDINATE BONDS RATED DOUBLEA BY MOODY'S PRICED AT PAR TO YIELD FROM 5 IN 1998 TO 54 IN 2000 565 IN 2003 62 IN 2013 AND 625 IN 2018 THERE ARE ALSO 254 MILLION IN 1993A SERIES A5B SENIOR SUBORDINATE BONDS SUBJECT TO ALTERNATE MINIMUM TAX AND RATED DOUBLEA BY MOODY'S PRICED AT PAR TO YIELD THE SAME AS THE SERIES A5A BONDS THERE ARE 80 MILLION IN 1993A SERIES A6 JUNIOR SUBORDINATE BONDS SUBJECT TO ALTERNATE MINIMUM TAX AND RATED SINGLEA BY MOODY'S THAT ARE PRICED AT PAR TO YIELD 59 IN 2003 64 IN 2013 AND 645 IN 2018 PENNSYLVANIA 173 MILLION OF GENERAL OBLIGATION FULL FAITH AND CREDIT BONDS WON BY A MERRILL LYNCH & CO GROUP WITH A BID SETTING THE TRUE INTEREST COST AT 532 AND PRICED TO YIELD FROM 27 IN 1994 TO 56 IN 20122013 THE BONDS ARE RATED SINGLEA1 BY MOODY'S AND DOUBLEAMINUS BY S&P PUERTO RICO PUBLIC BUILDING AUTHORITY 7045 MILLION OF REVENUE REFUNDING BONDS SERIES L AND PUBLIC EDUCATION AND HEALTH FACILITIES REFUNDING BOND SERIES M TENTATIVELY PRICED BY A FIRST BOSTON CORP GROUP TO YIELD FROM 4 IN 1996 TO 585 IN 2015 AND 2021 THE BONDS ARE RATED BAA1 BY MOODY'S AND SINGLEA BY S&P BANCO MERCANTIL DE SAO PAOLO BRAZIL 50 MILLION OF 9 SEMIANNUAL EUROBONDS DUE DEC 22 1995 VIA CHEMICAL INVESTMENT BANK LTD REOFFERED AT 996714 TO YIELD 915 SPREAD 482 BASIS POINTS ABOVE TREASURY YIELD CURVE FEES 1125 POINTS CELULOSA ARAUCO E CONSTITUCION CHILE 150 MILLION OF 725 EUROBONDS DUE JUNE 11 1998 REOFFERED AT 99547 VIA CHASE INVESTMENT BANK LTD YIELD 736 SEMIANNUAL SPREAD 210 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE FEES 08125 POINT COMPAGNIE BANCAIRE FRANCE 300 MILLION OF 525 EUROBONDS DUE JULY 2 1996 AT ISSUE PRICE 101025 VIA PARIBAS CAPITAL MARKETS LTD REOFFERED AT 999 TO YIELD 529 SPREAD 70 BASIS POINTS ABOVE THREEYEAR TREASURY NOTE FEES 1375 POINTS FORD CREDIT CANADA LTD US PARENT 125 MILLION CANADIAN DOLLARS OF 8 EUROBONDS DUE JULY 8 1998 AT ISSUE PRICE 1015 VIA LEAD UNDERWRITER WOOD GUNDY INC REOFFERED AT 9995 TO YIELD 801 ANNUAL SPREAD 100 BASIS POINTS ABOVE 65 CANADIAN GOVERNMENT NOTE DUE 1998 GUARANTOR FORD MOTOR CREDIT CO FEES 1875 POINTS HUNGARIAN FOREIGN TRADE BANK LTD HUNGARY 100 MILLION MARKS OF 95 EUROBONDS DUE JULY 8 1998 AT ISSUE PRICE 101 VIA BAYERISCHE LANDESBANK GIROZENTRALE YIELD 984 AT BREAKEVEN PRICE FOR COMANAGING BANKS SPREAD 331 BASIS POINTS ABOVE GERMAN GOVERNMENT'S BOBL NO 105 FEES 25 POINTS LKB BADENWUERTTEMBERG FINANCE NV GERMAN PARENT 10 BILLION PESETAS OF 106 EUROBONDS DUE JULY 1 2003 AT ISSUE PRICE 10115 VIA BANCO COMMERCIAL TRANSATLATICO SA DEUTSCHE BANK AG YIELD 107 ANNUAL AT BREAKEVEN PRICE FOR COMANAGING BANKS GUARANTOR LKB BADENWUERTTEMBERG AG FEES 1875 MORTGAGE BANK OF DENMARK DENMARK 300 MILLION DANISH KRONER OF 7375 EUROBONDS DUE JULY 1 2000 AT ISSUE PRICE 101875 VIA KREDIETBANK NV YIELD 7375 AT BREAKEVEN PRICE FOR COMANAGING BANKS GUARANTOR KINGDOM OF DENMARK FEES 1875 POINTS TOBU RAILWAY CO JAPAN 200 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE JUNE 17 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 1 COUPON AT PAR VIA SWISS BANK CORP EACH 50000FRANC NOTE CARRIES 50 WARRANTS EXERCISABLE FROM JUNE 29 1993 TO JUNE 9 1997 TO PURCHASE COMPANY SHARES FINAL TERMS WILL BE FIXED JUNE 6 FEES 1625 POINTS WORLD BANK SUPRANATIONAL 10 BILLION PESETAS OF 1035 MATADOR BONDS DUE JUNE 25 1998 AT ISSUE PRICE 10125 VIA BANCO CENTRALE HISPANO AMERICANO YIELD 1042 AT BREAKEVEN PRICE FOR COMANAGING BANKS FEES 1625 POINTS YORKSHIRE WATER PLC UK 604 MILLION OF 675 CONVERTIBLE EURONOTES DUE SEPT 23 2008 REOFFERED AT PAR VIA BARING BROTHERS & CO CONVERTIBLE INTO YORKSHIRE WATER SHARES AT 608 PENCE A SHARE PREMIUM 1692 OVER YESTERDAY'S MIDMARKET PRICE OF 520 PENCE CALLABLE BUT NOT BEFORE OCT 14 1998 UNLESS 85 OF BONDS CONVERTED FEES 25 POINTS 9306030062 930603 OTC FOCUS NASDAQ INDEX GAINS 158 POINTS LIFTED BY MCI OTHER COMMUNICATIONS STOCKS BY CAITLIN MOLLISON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK COMMUNICATIONS ISSUES SHOT HIGHER CARRYING THE OVERALL NASDAQ MARKET WITH THEM THE NASDAQ COMPOSITE INDEX ROSE 158 POINTS OR 022 TO END AT 70586 ADVANCERS LED DECLINING ISSUES 1405 TO 1238 ON TOTAL VOLUME OF 2743 MILLION SHARES UP FROM TUESDAY'S 1924 MILLION SHARES THE NASDAQ UTILITY INDEX WHICH INCLUDES MANY COMMUNICATIONS ISSUES REACHED ANOTHER RECORD JUMPING 1183 POINTS OR 133 TO FINISH AT 89834 ABOVE THE PREVIOUS HIGH SET TUESDAY MCI COMMUNICATIONS SET THE PACE GAINING 1 5/8 TO 54 3/8 THE WASHINGTON PROVIDER OF LONGDISTANCE TELEPHONE SERVICES AGREED TO SELL A 20 STAKE TO BRITISH TELECOMMUNICATIONS FOR 43 BILLION UNDER THE AGREEMENT MCI WILL ACQUIRE MOST OF BRITISH TELECOM'S BUSINESS IN NORTH AMERICA MCI PROVIDED THE IMPETUS FOR OTHER COMMUNICATION STOCKS MCCAW CELLULAR GAINED 1 1/4 TO 44 1/2 VANGUARD CELLULAR CLIMBED 2 3/8 TO 25 7/8 AND FLEET CALL WAS UP 1 1/8 TO 25 1/2 TONY CECIN DIRECTOR OF EQUITY TRADING AT PIPER JAFFRAY SAID PEOPLE WERE JUST GETTING BACK IN THE SADDLE YESTERDAY AFTER THE LONG WEEKEND AND WE SAW A LOT OF BACKING AND FILLING SOME TECHNOLOGY ISSUES FOR EXAMPLE SLIPPED A BIT FOLLOWING A RALLY TUESDAY PETER CANELO A MARKET STRATEGIST AT NATWEST SAID HE'S A BIT SKEPTICAL ABOUT THE NASDAQ COMPOSITE INDEX APPROACHING ITS HIGH OF 70885 IN THE PAST FEW SESSIONS HE THINKS THE MARKET WILL NEED A BROADBASED MOVE UPWARD IN THE TECHNOLOGY SECTOR NOT JUST STRONG COMMUNICATIONS STOCKS TO SUSTAIN A RALLY TRADERS SAID INVESTORS ARE LOOKING AHEAD TO TOMORROW'S RELEASE OF THE MAY EMPLOYMENT REPORT IF THE REPORT DRIVES BONDS STRONGLY IN EITHER DIRECTION THE STOCK MARKET COULD FOLLOW SUIT MR CECIN SAID MANY HEALTHCARE ISSUES GOT NEUTRALIZED YESTERDAY REPORTS SAID PRESIDENT CLINTON MAY DELAY RELEASING HIS HEALTHCARE PLAN AND SOME HEALTH MAINTENANCE ORGANIZATION COMPANIES WERE DRAGGED DOWN BY NEGATIVE COMMENTS MADE BY KENNETH ABRAMOWITZ AN ANALYST AT SANFORD C BERNSTEIN & CO HEART TECHNOLOGY OF BELLEVUE WASH ADDED 2 1/4 TO 21 1/2 THE COMPANY SAID IT RECEIVED FOOD AND DRUG ADMINISTRATION APPROVAL TO MARKET ITS ROTABLATOR SYSTEM TO REMOVE PLAQUE THAT BLOCKS CORONARY ARTERIES NONA MORELLI LED THE MOSTACTIVES LIST FOR THE SECOND STRAIGHT DAY AND GAVE UP 5/16 TO 1 1/8 AFTER RISING 5/8 TUESDAY THE PUEBLO COLO MAKER OF PASTA AND SAUCES HAS GENERATED INTEREST BASED ON ITS RECENT ANNOUNCEMENT THAT IT PLANS TO MOVE INTO THE CASINO BUSINESS ITS VOLUME WAS A HEFTY 197 MILLION SHARES ABOUT 16 TIMES ITS NORMAL VOLUME SOME TECHNOLOGY ISSUES GAVE BACK GAINS MADE TUESDAY ADOBE SYSTEMS WAS 1 5/8 WEAKER AT 65 7/8 AND BMC SOFTWARE FELL 1 3/8 TO 45 1/4 DELL COMPUTER DIPPED 1 1/8 TO 23 5/8 DELL SHAREHOLDERS ARE SUING THE AUSTIN TEXAS COMPANY CHARGING THAT IT FAILED TO DISCLOSE PROBLEMS IN ITS NOTEBOOK COMPUTER DIVISION THAT LED TO A SHARP DROP IN ITS STOCK PRICE BUT NEWBRIDGE NETWORKS LEAPED 6 1/8 TO 75 3/4 THE COMPANY SAID LATE TUESDAY THAT IT HAD FISCAL FOURTHQUARTER EARNINGS OF 65 CANADIAN CENTS 51 US CENTS A SHARE ABOUT 10 ABOVE ANALYSTS' ESTIMATES AND UP FROM 13 CANADIAN CENTS A SHARE A YEAR EARLIER ADAPTEC MILPITAS CALIF ADVANCED 2 TO 22 1/8 AFTER SAYING IT EXPECTS RECORD REVENUE AND PROFIT FOR ITS FISCAL FIRST QUARTER ENDING THIS MONTH THE COMPANY BELIEVES EARNINGS FOR THE FISCAL YEAR WILL FALL WITHIN THE RANGE OF ANALYSTS' CURRENT ESTIMATES IN OTHER AREAS ACME METALS ROSE 1 1/2 TO 15 1/2 MERRILL LYNCH INITIATED COVERAGE ON THE RIVERDALE ILL STEEL PRODUCTS CONCERN WITH AN INTERMEDIATETERM ABOVE AVERAGE RATING AND A LONGTERM BUY RECOMMENDATION CATHERINES STORES SLIPPED 1 1/4 TO 16 PAINEWEBBER ANALYST ANITA WAGER ASSUMED COVERAGE OF THE MEMPHIS TENN SPECIALTY RETAIL STORE OPERATOR FROM COLLEAGUE MARGO F MCGLADE AND LOWERED HER RATING TO ATTRACTIVE FROM BUY 9306030061 930603 WHO'S NEWS FEDERAL EXPRESS LOSES MANAGERS AGAIN AS OLIVER AND PRESLEY DECIDE TO RESIGN BY LAURIE M GROSSMAN STAFF REPORTER OF THE WALL STREET JOURNAL FEDERAL EXPRESS CORP FOR THE SECOND TIME IN LESS THAN TWO YEARS IS LOSING ITS NO 2 EXECUTIVE THE AIREXPRESS CONCERN SAID THAT THOMAS R OLIVER EXECUTIVE VICE PRESIDENT WORLDWIDE CUSTOMER OPERATIONS IS RESIGNING LATER THIS MONTH TO BECOME CHIEF EXECUTIVE OFFICER OF A CLOSELY HELD VOICEMAIL PROVIDER THE COMPANY ALSO SAID CAROLE A PRESLEY SENIOR VICE PRESIDENT MARKETING AND CORPORATE COMMUNICATIONS IS RESIGNING IN SEPTEMBER TO START A CONSULTING FIRM FEDERAL EXPRESS BASED IN MEMPHIS TENN NAMED WILLIAM RAZZOUK 45 YEARS OLD CURRENTLY SENIOR VICE PRESIDENT SALES AND CUSTOMER SERVICE TO SUCCEED MR OLIVER NO SUCCESSOR HAS BEEN NAMED FOR MS PRESLEY OR MR RAZZOUK THE DEPARTURE OF THE TWO FEDERAL EXPRESS VETERANS ACCORDING TO INDUSTRY OBSERVERS AGAIN UNDERSCORES THE DIFFICULTIES THE COMPANY HAS IN RETAINING TOP OFFICIALS UNDER THE STEWARDSHIP OF FREDERICK W SMITH THE 48YEAROLD CHAIRMAN AND CHIEF EXECUTIVE IN LATE 1991 THE COMPANY LOST JAMES L BARKSDALE CHIEF OPERATING OFFICER AND EXECUTIVE VICE PRESIDENT AND DAVID C ANDERSON CHIEF FINANCIAL OFFICER MR BARKSDALE ASSUMED THE PRESIDENCY OF MCCAW CELLULAR COMMUNICATIONS INC AND MR ANDERSON TOOK THE LEAD FINANCIAL POSITION AT BURLINGTON NORTHERN INC THERE ARE MORE GUYS GOING OUT THAN COMING SAID KEVIN MURPHY AN ANALYST WITH MORGAN STANLEY & CO THERE'S GOING TO HAVE TO BE AN INCENTIVE AT FEDERAL TO KEEP GOOD MANAGERS TO MITIGATE THE BRAIN DRAIN ANALYSTS AND INDUSTRY CONSULTANTS SAID THEY DIDN'T EXPECT THE MOVES TO SERIOUSLY HURT THE COMPANY NOTING THAT THERE'S A STRONG RESERVE OF MIDDLE MANAGERS TO FILL THE SLOTS BUT THEY ALSO NOTED THAT GIVEN MR SMITH'S AGE NO SUCCESSOR IS LIKELY TO BE ANNOINTED FOR A LONG TIME TO COME AND THAT HURTS THE COMPANY'S ABILITY TO RETAIN TOP MANAGERS A FEDERAL EXPRESS SPOKESMAN SAID MR SMITH WASN'T AVAILABLE FOR COMMENT FEDERAL EXPRESS'S PERFORMANCE IN ITS LATEST FISCAL YEAR WHICH ENDED MAY 31 WASN'T A REASON FOR THE DEPARTURES THE COMPANY AND OUTSIDERS AGREE THE COMPANY SUBSTANTIALLY CUT INTERNATIONAL LOSSES AND KEPT DOMESTIC PRICING COMPETITIVE MR OLIVER 52 WILL LEAVE JUNE 21 TO BECOME CEO AND PRESIDENT OF VOICECOM SYSTEMS INC IN SAN FRANCISCO WHICH IS CONSIDERING A PUBLIC OFFERING HE SAID MS PRESLEY 44 IS LEAVING FOR TAMPA FLA WHERE SHE PLANS TO START A MARKETING CONSULTING FIRM SHE WILL CONSULT FOR FEDERAL EXPRESS TWO OR THREE DAYS A WEEK SHE SAID MR OLIVER WHO HAS WORKED FOR FEDERAL EXPRESS FOR 15 YEARS IS CREDITED WITH HELPING DEVELOP THE COMPANY'S KEY PRODUCT ITS OVERNIGHT LETTER HE ALSO WAS PART OF THE TEAM THAT TRIED TO TURN AROUND THE COMPANY'S ZAPMAIL DOCUMENTTRANSMISSION SERVICE WHICH ULTIMATELY FAILED AND HANDLED THE COMPANY'S RETREAT FROM DOMESTIC DELIVERY SERVICES IN EUROPE I WASN'T DISSATISFIED WHERE I WAS MR OLIVER SAID IT WOULD BE NICE TO RUN MY OWN COMPANY THIS IS THE OPPORTUNITY TO STRIKE OUT AND TRY MY OWN WINGS MS PRESLEY WHO HAS WORKED AT FEDERAL FOR 17 YEARS IS KNOWN FOR HANDLING THE COMPANY'S RESPONSE TO UNION ORGANIZING AND FOR BEEFING UP ADVERTISING AND MARKETING DURING MUCH OF THE PAST DECADE MS PRESLEY AND OBSERVERS SAID THAT HER DEPARTURE WASN'T AFFECTED BY THE DECISION OF THE COMPANY'S PILOTS TO UNIONIZE EARLIER THIS YEAR MS PRESLEY SAID SHE'S LEAVING NOW BECAUSE I HAVE THE FINANCIAL WELLBEING TO TRY SOMETHING I'VE ALWAYS WANTED TO DO IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING YESTERDAY FEDERAL EXPRESS SHARES FELL 125 CENTS TO 49875 9306030060 930603 LETTERS TO THE EDITOR TERM LIMIT LAW MAY BRING REGRET YOUR APRIL 28 EDITORIAL ON TERM LIMITS WHICH STATED THAT THE US SENATE HAS BRAZENLY VOTED TO HAVE ITS TAXPAYERFUNDED LEGAL COUNSEL REPRESENT SENATOR DALE BUMPERS IN A SUIT TO OVERTURN ARKANSAS' TERM LIMITS IS BRAZENLY MISLEADING FIRST I DIDN'T FILE A LAWSUIT THE ARKANSAS LEAGUE OF WOMEN VOTERS FILED THE LAWSUIT CHALLENGING AN AMENDMENT LIMITING TERMS OF ALL PUBLIC OFFICIALS IN ARKANSAS AND PURSUANT TO STATE LAW I AND MY SENATE COLLEAGUES AND FOUR HOUSE MEMBERS WERE NAMED AS DEFENDANTS I ASKED THE LEADERSHIP OF THE SENATE TO PERMIT THE SENATE COUNSEL A PERMANENT EMPLOYEE WHO IS INDEED PAID BY THE TAXPAYERS TO FILE AN ANSWER FOR ME SAYING I HAD NO PERSONAL INTEREST IN THE LAWSUIT NOR IN ITS OUTCOME SENATE COUNSEL FILED AN ANSWER OF ABOUT 10 SENTENCES AND THE EXTRA COST TO THE TAXPAYERS AS A RESULT OF THAT WORK ON MY BEHALF WAS 29 CENTS THE COST OF MAILING THE RESPONSE TO THE COURT I THINK TERM LIMIT LEGISLATION AFFECTING MEMBERS OF CONGRESS IS HIGHLY SUSPECT CONSTITUTIONALLY BUT IF THE SUPREME COURT ULTIMATELY HOLDS SUCH LEGISLATION CONSTITUTIONAL I HAVE NO QUARREL WITH IT THE CONSTITUTION LISTS THREE AND ONLY THREE QUALIFICATIONS FOR SERVING IN CONGRESS RESIDENCE CITIZENSHIP AND AGE IT IS MY PERSONAL BELIEF THAT AS FAR AS MEMBERS OF CONGRESS ARE CONCERNED A CONSTITUTIONAL AMENDMENT IS NECESSARY TO LIMIT TERMS IF THE PEOPLE CHOOSE TO DO THAT YOU'LL HEAR NO QUARREL FROM ME THOUGH I THINK THEY WILL ULTIMATELY REGRET IT 9306030059 930603 REVIEW & OUTLOOK EDITORIAL WORK NOT WELFARE BILL CLINTON VOWED TO END WELFARE AS WE KNOW IT AND PROPOSED A TWOYEAR LIMIT ON WELFARE BENEFITS FOR ABLEBODIED ADULTS NOW THERE'S A PROPOSAL TO DO JUST THAT IN WISCONSIN WISCONSIN GOVERNOR TOMMY THOMPSON HAS ANNOUNCED AN AMBITIOUS PILOT PROGRAM TO RADICALLY RESHAPE THE WELFARE SYSTEM IN HIS STATE IF IT WORKS IT COULD GIVE THE WORD WELFARE BACK ITS ORIGINAL DEFINITION AS A TEMPORARY HELPING HAND NOT A PERMANENT WAY OF LIFE GOVERNOR THOMPSON SOUNDED A LOT LIKE CANDIDATE CLINTON WHEN HE SAID WE NEED A WELFARE SYSTEM THAT REWARDS WORK AND PROHIBITS LONGTERM DEPENDENCY WORK NOT WELFARE IS THE TITLE OF THE PROPOSED PROGRAM WHILE MANY OTHER PROGRAMS IN WISCONSIN AND ELSEWHERE ENCOURAGE WELFARE RECIPIENTS TO WORK WORK NOT WELFARE REQUIRES IT THE PROGRAM IS AIMED AT PEOPLE MOSTLY YOUNG WOMEN RECEIVING AID TO FAMILIES WITH DEPENDENT CHILDREN UNDER THE PLAN EVERY ABLEBODIED PERSON APPLYING FOR AFDC BENEFITS WILL BE REQUIRED TO SIGN A CONTRACT PLEDGING TO WORK FOR BENEFITS WITHIN 30 DAYS SHE MUST BEGIN A JOB OR JOBTRAINING THE STATE WILL PROVIDE TRAINING CHILD CARE TRANSPORTATION HEALTH BENEFITS AND JOBPLACEMENT ASSISTANCE IF A RECIPIENT CAN'T FIND A PRIVATESECTOR JOB THE GOVERNMENT WILL PROVIDE ONE IN THE PUBLIC SECTOR WHAT MAKES THE WISCONSIN PLAN EVEN MORE RADICAL AND WHAT GIVES IT ITS BEST SHOT AT WORKING IS THAT IT PUTS A LIMIT ON THE LENGTH OF TIME SOMEONE CAN STAY ON WELFARE UNDER GOVERNOR THOMPSON'S PROPOSAL AFTER TWO YEARS CASH BENEFITS WILL CEASE AFTER THE THIRD YEAR MEDICAL AND CHILDCARE BENEFITS WILL STOP CHILDREN WOULD CONTINUE TO RECEIVE NONCASH BENEFITS SUCH AS FOOD AND MEDICAL CARE COMMONSENSE EXCEPTIONS WOULD BE MADE SUCH AS FOR TEENAGE MOTHERS WHO NEED TO FINISH HIGH SCHOOL OR PARENTS OF SEVERELY HANDICAPPED CHILDREN ANOTHER RADICAL FEATURE OF WORK NOT WELFARE IS HOW IT TREATS FOOD STAMPS IT ESSENTIALLY DOES AWAY WITH THEM PAYING OUT THE EQUIVALENT AMOUNT IN CASH A MOTHER WITH TWO CHILDREN WHO NOW GETS 517 A MONTH IN CASH AND 212 IN FOOD STAMPS WOULD INSTEAD RECEIVE 729 IN CASH THIS RECOGNIZES THE REALITY THAT FOOD STAMPS ARE FUNGIBLE THAT IT'S AN EASY MATTER TO CONVERT FOOD STAMPS INTO CASH ON THE BLACK MARKET MORE IMPORTANT CASHING OUT FOOD STAMPS HELPS TO APPROXIMATE MORE CLOSELY THE TRUE VALUE OF A RECIPIENT'S WELFARE BENEFITS BECAUSE INKIND BENEFITS SUCH AS FOOD STAMPS USUALLY AREN'T CALCULATED AS INCOME THIS HAS THE PERNICIOUS EFFECT OF SUGGESTING THAT THE POOR ARE WORSE OFF THAN THEY REALLY ARE WISCONSIN HAS LONG BEEN A LEADER IN WELFARE REFORM WORK NOT WELFARE IS JUST THE LATEST IN A SERIES OF REFORMS UNDER GOVERNOR THOMPSON THAT HAVE RESULTED IN A 17 DECREASE SINCE 1987 IN THE NUMBER OF PEOPLE RECEIVING AFDC BENEFITS IN THE STATE OVER THE SAME TIME PERIOD ONLY TWO OTHER STATES IOWA AND ILLINOIS SAW THEIR CASELOADS DECLINE ALL THE REST SAW THEIR WELFARE ROLLS INCREASE WORK NOT WELFARE HAS BIPARTISAN SUPPORT IN THE WISCONSIN LEGISLATURE WHICH IS LIKELY TO APPROVE A PILOT PROGRAM FOR TWO COUNTIES LESS CERTAIN ARE THE WAIVERS THAT WISCONSIN MUST GET FROM THE US DEPARTMENT OF HEALTH AND HUMAN SERVICES TO INTRODUCE THE PILOT PROGRAM IN A VISIT TO MILWAUKEE TUESDAY PRESIDENT CLINTON ONCE AGAIN EMBRACED THE IDEA OF LIMITING WELFARE BENEFITS TO TWO YEARS THOUGH HE DIDN'T ENDORSE WORK NOT WELFARE HOW HIS ADMINISTRATION RESPONDS TO WISCONSIN'S REQUEST WILL SUGGEST HOW SERIOUS HE IS ABOUT THE MUCH TOUTED GOAL OF WELFARE REFORM 9306030058 930603 BUSINESS BULLETIN A SPECIAL BACKGROUND REPORT ON TRENDS IN INDUSTRY AND FINANCE BY PAMELA SEBASTIAN CHANGEABLE CDS SPROUT IN A LOW BUT DUBIOUS INTERESTRATE ENVIRONMENT BANKS AND THRIFTS PUSH STEPUP CDS THAT BOOST RATES A BIT IF MARKET RATES RISE CALLED AMONG OTHER THINGS BUMPUP PUNCH IT UP OR GIVE YOURSELF A RAISE CDS THE PROMOS MARK THE LATEST BID TO STEM DEPOSIT OUTFLOW TO STOCKS THE INFLATION SCARE IS ON SO SOME BANKS FEEL IT IS A GOOD TIME TO LOCK IN LOWCOST DEPOSITS SAYS GAIL LIBERMAN EDITOR OF BANK RATE MONITOR A CATCH SOME CDS OFFER THE OPTION ONLY ONCE OR TWICE KENTUCKY'S BANK OF LOUISVILLE A UNIT OF MIDAMERICA BANCORP OFFERS A FOURYEAR CD WITH A 325 FIRSTYEAR RATE THAT GROWS A BIT EACH YEAR AND PERIODICALLY ALLOWS FOR BAIL OUT PNC BANK PHILADELPHIA HAS A SIMILAR CD BUT NEW JERSEY'S FIRST FIDELITY SWEETENS THE FIRST YEAR OF A FIVEYEAR CD WITH A 7 RATE THAT THEN DROPS TO 474 STILL UNLESS THE STOCK MARKET LAYS AN EGG INVESTORS WON'T RUSH TO CDS SAYS GARY CIMINERO CHIEF ECONOMIST AT FLEET FINANCIAL GROUP PROVIDENCE RI TOO MUCH TECH SPOILS A PRESENTATION TO ARBY'S INC RESTAURANT MANAGERS HAL REID AN ARBY'S EXECUTIVE AND A FAN OF GEOGRAPHIC TECHNOLOGY IT LINKS DATA TO MAPS COOKED UP A DISPLAY TO HELP STORE MANAGERS USE DATA CULLED BY CASH REGISTERS ON COMPUTER SCREENS ARBY'S LOGO A WESTERN HAT POPPED UP IN RED BLUE OR YELLOW IN DIFFERENT SIZES SIGNIFYING SALES LABOR COST INVENTORY AND SUCH ACROSS A FIELD OF RESTAURANTS THE FRESH DATA CAN FLAG ANY UNUSUAL PATTERNS MUCH SPEEDIER THAN PHONING OR DRIVING TO ALL STORES WE BOMBED SAYS MR REID IN HIS COLUMN FOR BUSINESS GEOGRAPHICS A NEW MAGAZINE WHAT WENT WRONG FIRST THE MANAGERS WEREN'T PCFRIENDLY AND MR REID SAYS HE SHOULDN'T HAVE HELD THE SESSION IN THE OPERATIONS CENTER WITH AN AWFUL LOT OF EQUIPMENT AROUND TO SCARE NONTECHIES BUT IT'S A PILOT SO HE GETS MORE CHANCES NEXT TIME MR REID MAY START WITH AN EVANGELISTIC CORE OF PCUSERS OR WE MIGHT DO IT ALL IN HARD COPY HE SAYS GROW OLD IN PENNSYLVANIA AND HELP THE KEYSTONE STATE'S FINANCES BETWEEN 1985 AND 1990 RETIREES MOVING FROM PENNSYLVANIA TOOK AN ESTIMATED 6734 MILLION IN ANNUAL INCOME AND 517 BILLION IN ASSETS WITH THEM THE STATE'S AGING AND COMMERCE DEPARTMENTS REPORT THIS STUDY SHOWS THAT OLDER PEOPLE ARE NOT ONLY SOCIAL ASSETS BUT FINANCIAL ASSETS SAYS LINDA M RHODES SECRETARY OF AGING WE MUST DO MORE TO CONVINCE THEM TO STAY SHE ADDS SO THE STATE IS STRESSING ITS LOW COST OF LIVING SAFETY MEDICAL CARE AND OTHER SERVICES PENNSYLVANIA USES LOTTERY PROCEEDS FOR SENIOR SERVICES A STRATEGY THAT RAN INTO DIFFICULTY WHEN THE LOTTERY LEVELED OFF AND SOME EXTRAVAGANT SERVICES WERE CUT NOW DR RHODES SAYS SENIORS WHO CAN AFFORD TO PAY MAY BE ASKED TO SHARE SOME COSTS IN THE FUTURE STILL THE KEYSTONE STATE IS OUT FRONT IN THE COUNTRY'S EFFORT TO PROVIDE QUALITY HEALTH CARE PENNSYLVANIA OFFERS SERVICES SUCH AS A HOMECARE OPTION AND A PRESCRIPTION DRUG PLAN FOR ITS SENIORS PENNSYLVANIA LAUNCHES SILVER & GOLD A RETIREMENT GUIDE MAGAZINE DRIVE EUROPE WHILE YOU WORK SUGGESTS A NEW HERTZ PROGRAM THAT AIMS TO FILL A NICHE BETWEEN CAR RENTALS AND LEASES IT TARGETS BUSINESSPEOPLE AND UNIVERSITY LECTURERS ON TEMPORARY OVERSEAS POSTINGS A THREEMONTH RENTAL OF A MIDSIZE CAR COSTS 5216 IN THE UK AND 4375 IN GERMANY UNCLENCH GYM RATS MASTERSSPORTS A NEWSLETTER FOR OLDER ATHLETES SAYS MORE DOCTORS AND DENTISTS CONNECT HEADACHES EARACHES AND NECK PAIN TO JAW CLENCHING WHICH CAN INFLAME A JOINT NEAR THE EAR DURING STRESSFUL SITUATIONS SUCH AS RACING WORKING OUT OR WEIGHT LIFTING A ROYAL FLUSH WINS FOR ALL PLAYERS IN A 250000 SOUTH CENTRAL LOS ANGELES VENTURE THAT SWAPS OLD TOILETS FOR WATERCONSERVING ONES EACH EXCHANGE NETS 25 FOR THE FIRST AFRICAN METHODIST EPISCOPAL CHURCH'S FAME ASSISTANCE CORP WHICH RUNS THE PROGRAM THAT ALSO GENERATES JOBS FUNDS COME FROM PUBLIC AND PRIVATE WATER AGENCIES THE EQUIPMENT CUTS WATER BILLS BY 10 NONPROFITS GET A BREAK ON SHIPPING COSTS UNDER A NEW SERVICE GIFTS IN KIND AMERICA AN ALEXANDRIA VA NONPROFIT THAT MATCHES DONATED GOODS WITH GROUPS THAT CAN USE THEM LAUNCHES A SHIPPERS' SERVICE ITS TRANSPORTATION AND LOGISTICS CENTER AIMS FOR DISCOUNTS SIMILAR TO THOSE HIGHVOLUME FORPROFIT FIRMS CAN OFTEN GET SAYS SUSAN CORRIGAN PRESIDENT OF GIFTS IN KIND IT CHARGES A PERUSE FEE OF 25 FOR MEMBERS 50 FOR OTHERS USES COMMERCIAL TRUCKERS AND HANDLES PAPERWORK THE VANDERBILT MUSEUM IN CENTERPORT NY MOVED AN EXHIBIT VIA THE SERVICE AND SAVED ALMOST HALF THE PRICE IT COULD ARRANGE ITSELF SAYS MUSEUM OFFICIAL MARK LEVINE TOM WATERS OF HABITAT FOR HUMANITY IN AMERICUS GA NOTES IT'S WELL WORTH IT IF YOU CAN SAVE A COUPLE OF HUNDRED DOLLARS HE USED THE GROUP TO SHIP CEILING LIGHTS FROM PHILADELPHIA TO AMERICUS BUT MR WATERS POINTS OUT THAT SOMETIMES GIFTS CAN ALSO INCLUDE SHIPPING FEES THE VANDERBILT'S MR LEVINE NOTES THE EXHIBIT DIDN'T NEED HEAVY SECURITY JUST A TRUCK WITH A COURTEOUS DRIVER 9306030057 930603 TECHNOLOGY HEART TECHNOLOGY FDA APPROVAL BELLEVUE WASH HEART TECHNOLOGY INC SAID IT RECEIVED APPROVAL FROM THE FOOD AND DRUG ADMINISTRATION TO MARKET ROTABLATOR A CATHETER WITH A DIAMONDCOATED BURR THAT REMOVES BLOCKAGES FROM CORONARY ARTERIES THE COMPANY SAID IT BELIEVES ITS SYSTEM COMPARES FAVORABLY WITH BALLOON ANGIOPLASTY A POPULAR METHOD OF CLEARING ARTERIES IN COMPOSITE TRADING YESTERDAY IN THE OVERTHECOUNTER MARKET HEART TECHNOLOGY CLOSED AT 2150 UP 225 9306030056 930603 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN THE EUROPEAN COMMUNITY STANDING ON PRINCIPLE WILL COUNTERRETALIATE AGAINST THE US IN A DISPUTE ABOUT GOVERNMENT CONTRACTS BY ADOPTING SANCTIONS AGAINST 15 MILLION IN TRADE EC DIPLOMATS SAID THE MOVE AGREED UPON BY EC AMBASSADORS WILL BE APPROVED TUESDAY BY FOREIGN MINISTERS THE REACTION FOLLOWS LAST WEEK'S US SANCTIONS BARRING EUROPEAN COMPANIES FROM BIDDING FOR 20 MILLION IN GOVERNMENT CONTRACTS WHICH THE EC SANCTIONS GENERALLY MIRROR BUT THE EC AS THE US DID PLANS TO PLAY DOWN THE DISPUTE TO AVOID UNDERMINING WORLD TRADE TALKS IN APRIL THE EC AND US REACHED A PARTIAL ACCORD AFTER A LONG FIGHT ABOUT GOVERNMENT AGENCIES' DISCRIMINATION AGAINST FOREIGN COMPANIES PROMPTING THE US TO SCALE BACK PLANNED SANCTIONS ON THE EC BUT THEY WERE UNABLE TO RESOLVE DIFFERENCES OVER TELECOMMUNICATIONS WORK THE EC WILL BLOCK US FIRMS FROM BIDDING FOR SUPPLY AND SERVICES CONTRACTS OF LESS THAN 245000 SUCH AS FOR DREDGING JOBS AND LEGAL RESTAURANT AND TELECOMMUNICATIONS SERVICES AMONG OTHER AREAS THE EUROPEAN COMMUNITY COMMISSION ENDORSED A CAUTIOUS NONBINDING BLUEPRINT FOR CHIPPING AWAY AT THE 12 MEMBER STATES' POSTAL MONOPOLIES FOR A REPORT BY THIS FALL IT CALLED FOR FURTHER STUDIES OF HOW MUCH PROTECTION FROM COMPETITION NATIONAL POSTAL AGENCIES SHOULD GET TO UNDERPIN LETTER DELIVERY SERVICES AND OF EFFECTS ON POSTAL FINANCES AND JOBS FROM ALLOWING PRIVATE COMPANIES TO OFFER SOME SERVICES BUT THE COMMISSION ALSO URGED POST OFFICES TO START PREPARING FOR COMPETITION AND IT RECOMMENDED THEY RESOLVE DELIVERY COSTS WITHIN THE EC NOW DOMESTIC OPERATIONS ARE OFTEN SUBSIDIZED BY HIGH RATES FOR DELIVERIES TO OTHER MEMBER STATES THE SWISS PARLIAMENT REJECTED FURTHER RESTRICTIONS ON ADVERTISING OF ALCOHOLIC BEVERAGES AND TOBACCO PRODUCTS ALREADY BARRED ON TELEVISION THE GOVERNMENT PROPOSALS WOULD HAVE PROHIBITED SUCH ADS FROM MOVIE SCREENS BILLBOARDS AND YOUTH MAGAZINES BUT ALLOWED THEM IN OTHER MAGAZINES AND NEWSPAPERS PARLIAMENT ALSO REJECTED A PETITION SIGNED BY 114000 PEOPLE DEMANDING A BAN WITHOUT EXCEPTIONS BUT AS ONLY 100000 SIGNATURES ARE NEEDED TO FORCE A REFERENDUM THE INITIATIVE WILL BE PUT TO SWISS VOTERS OPPONENTS SAID CURBS WOULD PUT SWISS COMPANIES AT A DISADVANTAGE TO FOREIGN COMPETITORS A NEW VIETNAMESE DIRECTIVE ENCOURAGES MORE THAN 10000 STATECONTROLLED BUSINESSES TO CHANGE TO FORMS OF PRIVATE OWNERSHIP THE GOVERNMENT INITIATED ECONOMIC REFORMS IN 1986 TO BOOST ITS BADLY FLAGGING ECONOMY AND TRIAL PRIVATIZATIONS BEGAN LAST JUNE WITH A MOVE TOWARD A MARKET ECONOMY UNDER THE NEW MEASURES TO SPEED SELLOFFS OR PARTIAL PRIVATIZATIONS ENTERPRISES MAY SELL SHARES TO FOREIGN INVESTORS AND QUALIFY FOR TAX INCENTIVES VIETNAM'S STATERUN SECTOR HOLDS TWICE THE ASSETS OF PRIVATE FIRMS BUT CONTRIBUTES ONLY A THIRD OF GROSS DOMESTIC PRODUCT RUSSIA'S CABINET ACCELERATING ITS PRIVATIZATION PROGRAM WILL FOCUS ON DEFENSE OIL AND NATURALGAS ENTERPRISES THESE SECTORS HAVE BEEN LARGELY UNTOUCHED AS ABOUT HALF THE STATE'S COMMERCIAL AND SERVICE BUSINESSES WERE TURNED OVER TO PRIVATE OWNERSHIP THE TOUGH POLITICAL STRUGGLE OF THE PAST TWO OR THREE MONTHS HAS SLOWED US DOWN SAID PRIME MINISTER ANATOLY CHUBAIS WHO HEADS THE SELLOFF DRIVE POLITICAL BATTLES OVER THE CONCEPT AND CONTENT OF THE PRIVATIZATION PROGRAM HAVE ENDED BECAUSE OF THE COMPLETE FAILURE OF THOSE WHO DID THEIR BEST TO STOP IT YEGOR GAIDAR FORMER PRIME MINISTER OF RUSSIA FORMED A GROUP OF MORE THAN 1000 BUSINESSES TO LOBBY FOR LAWS THAT SUPPORT THE FLEDGLING PRIVATE SECTOR MR GAIDAR A PRESIDENTIAL ADVISER WAS THE CHIEF ARCHITECT OF RUSSIA'S FREEMARKET REFORMS UNTIL LAST DECEMBER WHEN HE WAS OUSTED IN A CONCESSION TO CONGRESSIONAL OPPONENTS HIS NONPROFIT ASSOCIATION OF PRIVATIZED AND PRIVATE ENTERPRISES COULD BECOME A POLITICAL COUNTERWEIGHT TO THE POWERFUL INDUSTRIAL LOBBY THE UNION OF INDUSTRIALISTS AND ENTREPRENEURS THE ASSOCIATION WILL PUSH FOR A UNIFORM TRADE CODE AND LAWS ON TRUSTS CONTRACTS AND PARTNERSHIPS FIRSTQUARTER INVESTMENTS BY FOREIGN COMPANIES IN CHINA TOTALED 3 BILLION A 167 JUMP FROM THE YEAREARLIER PERIOD AND THE FIRMS PLEDGED A RECORD 25 BILLION IN INVESTMENTS UP A WHOPPING 347 OUTLAYS BY FOREIGN COMPANIES THIS YEAR WILL EASILY SURPASS LAST YEAR'S TOTAL OF 116 BILLION BUT THE FIGURES ARE INFLATED BY GROWING NUMBERS OF CHINESE COMPANIES WITH HONG KONG UNITS INVESTING IN CHINA THEY ARE DESIGNATED AS FOREIGN CONCERNS ALLOWING THEM PREFERENTIAL TAX TREATMENT THE OVERSEAS INVESTMENT LEADERS ARE HONG KONG TAIWAN THE US AND JAPAN MOSTLY IN LIGHT MANUFACTURING MEANWHILE CHINA'S INDUSTRIAL PRODUCTION SOARED 22 IN THE FIRST PERIOD AND WILL EXCEED 20 IN THE CURRENT QUARTER EVEN SO OUTPUT IS BEING RESTRAINED BY BOTTLENECKS CRIMPING PRODUCERS' ACCESS TO ENERGY RAW MATERIALS AND COMMUNICATIONS MEXICO'S TAX REVENUE LAST YEAR ROSE AN INFLATIONADJUSTED 65 DOUBLE EXPECTATIONS FOLLOWING ANIMALPROTECTION PLEAS CHINA BANNED THE PURCHASE SALE OR TRANSPORT OF RHINOCEROS HORNS AND TIGER BONES WHICH ARE USED AS INGREDIENTS IN CHINESE TRADITIONAL MEDICINES 9306030055 930603 HEARD ON THE STREET NEW PAYROLL RULE MAY EAT INTO 1997 PROFITS BY LEE BERTON STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK EXECUTIVE COMPENSATION IS A HOT TOPIC THAT MAY WIND UP GIVING MANY COMPANIES A HOT FOOT ON WALL STREET THAT'S BECAUSE THE NATION'S ACCOUNTING RULEMAKERS SWEPT UP BY PUBLIC FUROR OVER HIGH EXECUTIVE PAY IN APRIL ENDORSED A 10YEAROLD PROPOSAL THAT COULD SCORCH SOME COMPANIES' PROFITS THE NEW RULE IF IT IS MADE FINAL WILL FORCE BUSINESSES TO START SUBTRACTING THE VALUE OF EMPLOYEE STOCK OPTIONS FROM THEIR EARNINGS BY 1997 SCRAPPING A LONGTIME FREE RIDE UNDER WHICH CORPORATE PROFITS WERE IMMUNE FROM STOCKOPTION COSTS WALL STREET IS ALREADY CRUNCHING THE NUMBERS BRACING FOR CORPORATE EARNINGS TO TAKE A HIT OF 2 TO 50 OR MORE AT SOME BUSINESSES ESPECIALLY IN TECHNOLOGY THE RULE COULD DRIVE DOWN SOME STOCK PRICES COMPANIES AND ANALYSTS SAY IT COULD HURT US IN THE STOCK MARKET AND WOULD CONFUSE RATHER THAN HELP SHAREHOLDERS UNDERSTAND OUR RESULTS SAYS EDWIN GILLIS CHIEF FINANCIAL OFFICER OF LOTUS DEVELOPMENT CAMBRIDGE MASS HE SAYS THE RULE MAY SPUR LOTUS TO GRANT FEWER OPTIONS AND TAKE A CLOSER LOOK AT ITS EMPLOYEE STOCK PURCHASE PLAN BARBARA HUBBARD CONTROLLER OF SOFTWARE PUBLISHING SANTA CLARA CALIF SAYS THE FINANCIAL ACCOUNTING STANDARDS BOARD RULE WOULD DEPRESS THE COMPANY'S STOCK PRICE AND CAUSE IT TO PULL BACK OR NARROW OPTION AWARDS WE'LL CONTINUE TO FIGHT SUCH ACCOUNTING OVERKILL VIGOROUSLY MS HUBBARD DECLARES IF THE RULE HAD ALREADY BEEN IN EFFECT IT WOULD HAVE REDUCED LOTUS'S PERSHARE PROFITS IN 1992 BY 496 AND SOFTWARE PUBLISHING'S PERSHARE NET LAST YEAR BY 409 BY SOME ESTIMATES SEE TABLE ALTHOUGH THE FASB'S MOVE FACES A YEAR AND A HALF OF PUBLIC HEARINGS AND BITTER OPPOSITION FROM BUSINESS BEFORE IT BECOMES FINAL IT IS MAKING COMPANIES SHUDDER IT COULD BRING OUR STOCK PRICE TO A LOWER LEVEL BECAUSE IT WOULD LOWER OUR PROFITS BY 10 OR MORE SAYS ARTHUR WEINBACH EXECUTIVE VICE PRESIDENT OF AUTOMATIC DATA PROCESSING IN ROSELAND NJ THIS WOULD BE VERY UNFORTUNATE BECAUSE STOCK COMPENSATION HAS SIGNIFICANTLY MOTIVATED OUR EMPLOYEES TO ACT AS OWNERS IT WOULD TAKE A LOT TO MAKE US GIVE IT UP BUT WE'D CERTAINLY HAVE TO CONSIDER ALTERNATIVES WHILE 1997 SEEMS A LONG WAY OFF THE FASB PROPOSAL STARTING NEXT YEAR REQUIRES DISCLOSURE IN FOOTNOTES OF THE PROJECTED PROFIT PENALTY FROM THE OPTIONS RULE THIS EARLY WARNING COULD BRING A SELLING SPREE IN STOCKS OF COMPANIES WHOSE PROFITS WOULD DROP THE MOST SAY SOME FASB WATCHERS LIKELY TO BE HARDEST HIT ANALYSTS SAY ARE THE HIGHTECHNOLOGY AND STARTUP COMPANIES THAT TYPICALLY USE STOCK RATHER THAN HARDTOCOMEBY CASH TO ATTRACT NEW EXECUTIVES COMPANIES WHOSE STOCK PRICES GYRATE WIDELY ALSO MAY SUFFER BECAUSE STOCK VOLATILITY BOOSTS OPTIONS COSTS UNDER THE FASB'S PROPOSAL ALSO VULNERABLE COMPANIES WITH LOW PROFIT MARGINS AND THOSE THAT LET MOST OR ALL OF THEIR EMPLOYEES BUY STOCK AT A DISCOUNT WITH DISCLOSURES COMING OUT NEXT YEAR NOTING HOW BADLY COMPANIES COULD BE HURT BY THE FASB PROPOSAL INVESTORS MAY NOT REALIZE HOW CLOSE IS THE SWORD OF DAMOCLES SAYS MICHAEL C BERNSTEIN A PARTNER AT THE ACCOUNTING FIRM OF GRANT THORNTON GRANT THORNTON AND SEGAL CO A COMPENSATION CONSULTANT RECENTLY SURVEYED MORE THAN 100 COMPANIES ABOUT THE FASB'S PROPOSAL OF THE 87 THAT OFFER STOCK OPTIONS TO SOME OR ALL EMPLOYEES ONLY 3 WOULD DROP SUCH OPTIONS IF THE COST WERE SUBTRACTED FROM PROFITS BEAR STEARNS RECENTLY SCRUTINIZED HOW 1992 PERSHARE PROFITS OF A SLEW OF COMPANIES WOULD HAVE DIPPED IF THE FASB RULE HAD BEEN IN EFFECT MICROSOFT LED THE FIRM'S LIST WITH A 19 EARNINGS PENALTY WHILE AMERICAN TELEPHONE & TELEGRAPH HAD THE SMALLEST LESS THAN 1 OTHER BIG PERSHARE REDUCTIONS ACCORDING TO BEAR STEARNS 15 FOR NOVELL 7 FOR AMERICAN EXPRESS 87 FOR AMGEN AND 69 FOR PARAMOUNT COMMUNICATIONS MEANWHILE IN ITS ACCOUNTING OBSERVER NEWSLETTER INVESTMENT ADVISER RG ASSOCIATES OF BALTIMORE ESTIMATES THE FOLLOWING HYPOTHETICAL REDUCTIONS IN 1992 PROFITS FOR SEVERAL HIGHTECH COMPANIES UNDER THE FASB PROPOSAL ALMOST 50 FOR LOTUS NEARLY 45 FOR 3COM AND ALMOST 26 FOR NOVELL FOR '92 RESULTS OF OTHER COMPANIES OUTSIDE THE TECHNOLOGY REALM RG ASSOCIATES ESTIMATES A PROFIT PINCH OF 10 FOR ALUMINUM CO OF AMERICA 63 FOR ALLIEDSIGNAL AND 47 FOR WALT DISNEY STOCK OPTIONS ALLOW EMPLOYEES TO BUY STOCK AT A FIXED PRICE OVER A TIME SPAN OFTEN 10 YEARS MANY COMPANIES SAY STOCK OPTIONS REALLY RAISE MONEY RATHER THAN COST THEM ANYTHING BECAUSE THE COMPANIES GET PAID WHEN OPTIONS ARE EXERCISED SOME COMPANIES EVEN ARGUE THAT IF STOCK COMPENSATION IS A COST THEN RETENTION OF KEY EMPLOYEES SHOULD BE TREATED AS AN OFFSETTING ASSET BUT THE FASB INSISTS THAT IF A COMPANY GIVES A PERSON SOMETHING OF VALUE EVEN JUST THE YEARS AN OPTIONHOLDER IS GIVEN TO BUY SHARES IT SHOULD BE CONSIDERED A COST TO THE COMPANY IF THE FASB RULE IS ENACTED WHICH SEEMS LIKELY THE FREE LUNCH FOR PROFITS AND IN THE STOCK MARKET WILL BE OVER FOR COMPANIES THAT GIVE AWAY TOO MANY STOCK OPTIONS TO THEIR EMPLOYEES SAYS JACK T CIESIELSKI PUBLISHER OF THE ACCOUNTING OBSERVER AUTOMATIC DATA NOT ONLY GIVES STOCK OPTIONS TO ITS EXECUTIVES BUT LETS 15000 OF ITS 20000 EMPLOYEES BUY ITS STOCK AT 85 OF ITS MARKET VALUE ON THE DATE OF ISSUE FOR TWO YEARS THEREAFTER ACCORDING TO MR WEINBACH GEORGE SOLLMAN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF CENTIGRAM COMMUNICATIONS A SAN JOSE CALIF SOFTWARE MAKER SAYS DEDUCTING STOCK OPTIONS' COST FROM PROFITS WOULD HURT INVESTORS IN HIS COMPANY AND HINDER CENTIGRAM FROM COMPETING WITH BIG COMPANIES IN ATTRACTING NEW EXECUTIVES A STUDY DONE FOR CENTIGRAM BY AN ACCOUNTING FIRM SHOWED THE FASB RULE COULD REDUCE ITS PERSHARE PROFIT BY AS MUCH AS 46 MR SOLLMAN SAYS ALL OF OUR 275 EMPLOYEES GET STOCK COMPENSATION AND SUCH A PROFIT REDUCTION WOULD BE DEVASTATING ON OUR COMPANY'S PERFORMANCE IN THE STOCK MARKET AND HURT ALL OUR INVESTORS INCLUDING MAJOR INSTITUTIONS HE SAYS ABOUT 13 OF CENTIGRAM'S 46 MILLION SHARES ARE OWNED BY SEVERAL MUTUAL FUNDS IN THE FIDELITY INVESTMENTS FAMILY AND 85 ARE OWNED BY THE STATE OF WISCONSIN INVESTMENT BOARD WHICH MANAGES THE PENSION FUNDS OF THE STATE'S PUBLIC EMPLOYEES MR SOLLMAN SAYS HIGHTECH COMPANIES SUCH AS CENTIGRAM ARE PARTICULARLY DISTURBED BY THE FASB'S STOCKOPTION PROPOSAL BECAUSE OF ITS STOCKMARKET REPERCUSSIONS ELLIOT LEVINE A VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF CHEYENNE SOFTWARE ROSLYN NY ESTIMATES THAT THE FASB MOVE COULD LOWER CHEYENNE'S PROFITS MORE THAN 50 IT WOULD BE A DISASTER HE SAYS UNDER THE METHOD USED BY FASB TO MEASURE STOCKOPTION VALUE HIGH STOCKPRICE VOLATILITY MAKES OPTIONS MORE VALUABLE AND THUS BOOSTS THE AMOUNT THAT MUST BE SUBTRACTED FROM CORPORATE PROFITS TO REFLECT THEM TOLL BROTHERS A PHILADELPHIABASED HOME BUILDER HAS SEEN ITS STOCK MORE THAN DOUBLE IN PRICE THIS YEAR ALSO WE ARE MAJOR USERS OF STOCK INCENTIVES FOR OUR EMPLOYEES SAYS JOEL RASSMAN A SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER FOR TOLL IF THE FASB PROPOSAL HAD BEEN IN EFFECT IT COULD HAVE REDUCED OUR EARNINGS PER SHARE OF 52 CENTS IN THE YEAR ENDED LAST OCT 31 BY MORE THAN 10 HE SAYS FOR COMPANIES LIKE OURS IT WOULD HURT OUR BOTTOM LINE EVEN MORE AND BE DETRIMENTAL TO SHAREHOLDERS TO SHIFT TO CASH FROM STOCK COMPENSATION FOR OUR KEY EMPLOYEES ROSS MANIRE A SENIOR VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF US ROBOTICS A CHICAGO MAKER OF MODEMS FOR DATA COMMUNICATIONS ESTIMATES THE FASB'S PROPOSAL WOULD HAVE LOWERED THE COMPANY'S 1ASHARE PROFIT FOR THE YEAR ENDED SEPT 30 BY ABOUT 20 WE MIGHT HAVE TO RESTRUCTURE OUR COMPENSATION PACKAGES TO AVOID SUCH A PENALTY HE SAYS BUT THIS WOULD REALLY HURT OUR EXECUTIVE HIRING PROGRAM AND OUR ABILITY TO COMPETE WITH BIGGER FIRMS HE POINTS OUT THAT THE COMPANY OVER THE YEARS HAS USED LUCRATIVE STOCKCOMPENSATION PACKAGES TO HIRE AWAY EXECUTIVES IN RESEARCH AND DEVELOPMENT FROM MAJOR COMPANIES SUCH AS ZENITH ELECTRONICS AND GENERAL DATACOM INDUSTRIES IN BANKING TOO THERE'S SOME CONCERN ABOUT THE RULE IT COULD REDUCE OUR EARNINGS PER SHARE BY AS MUCH AS 6 AND COULD AFFECT OUR STOCK MARKET PERFORMANCE SAYS THOMAS F GOLDRICK JR CHAIRMAN AND PRESIDENT OF STATE BANCORP INC A NEW HYDE PARK NY HOLDING COMPANY THAT HAS EIGHT BRANCHES IN NASSAU AND SUFFOLK COUNTIES STOCK OPTIONS HAVE BEEN AVAILABLE SINCE 1969 TO THE BANK'S OFFICERS AND 30 TO 40 OF ITS STAFF BUT SUCH AN ADDED INCREASE IN OUR EXPENSE COULD FORCE US TO ELIMINATE STOCK OPTIONS AS COMPENSATION FOR ALL OUR EMPLOYEES SAYS MR GOLDRICK IN APRIL THE COMPANY'S BOARD DIDN'T ASK SHAREHOLDERS TO APPROVE A NEW 10YEAR STOCKOPTION PLAN BECAUSE WE WANT TO SEE WHAT THE FASB IS GOING TO DO WITH THIS PROPOSAL IF THE FASB PROPOSAL ON DEDUCTING VALUE OF EMPLOYEE STOCK OPTIONS WERE CURRENTLY EFFECTIVE THE HYPOTHETICAL IMPACT ON CALENDAR OR FISCAL 1992 EARNINGS WOULD BE SOURCES BEAR STEARNS & CO RG ASSOCIATES INC OF BALTIMORE 9306030054 930603 ENTERPRISE BUILDING A BUSINESS ON BEER BY TIMOTHY L O'BRIEN STAFF REPORTER OF THE WALL STREET JOURNAL WHILE TONY RESTAURANTS CONCOCT SPECIAL EVENTS CENTERED ON CAVIAR AND GOURMET OLIVE OIL NEIGHBORHOOD RESTAURANTS ARE OFFERING EVENTS BUILT AROUND THAT MOST COMMON OF QUAFFS BEER BY PLANNING MENUS AROUND SPECIALTY BEERS AND BEER TASTINGS THESE RESTAURANTS HAVE BEEN ABLE TO TAKE ADVANTAGE OF AN INCREASED INTEREST IN MATCHING GOOD FOOD WITH GOOD BEER PEOPLE HAVE A MORE SOPHISTICATED APPROACH TO DRINKING BEER NOW SAYS WENDY WEBSTER A SPOKESWOMAN FOR THE NATIONAL RESTAURANT ASSOCIATION THEY'RE NOT DRINKING IT FOR VOLUME THEY'RE DRINKING IT FOR TASTE AT NOSMO KING AS IN NO SMOKING A FUMEFREE RESTAURANT IN NEW YORK'S TRENDY TRIBECA DISTRICT CUSTOMERS CAN ARRANGE IN ADVANCE FOR SPECIAL DINNERS THAT SERVE A VARIETY OF COURSES CHOSEN TO COMPLEMENT DIFFERENT BEERS A TYPICAL MODERATELY PRICED MEAL MIGHT INCLUDE SMOKED RABBIT DUMPLINGS DUCK RAGOUT OYSTERS AND AN APPLE TART MATCHED WITH A LAGER A STOUT AND TWO VARIETIES OF ALE NOSMO KING'S OWNER STEVE FRANKEL SAYS THE FOURYEAROLD RESTAURANT BROKE EVEN LAST YEAR AND SHOULD TURN A PROFIT THIS YEAR WINETASTING MENUS ARE A THING THAT FINE RESTAURANTS OFFER TO THEIR PATRONS SAYS MR FRANKEL WE'RE TRYING TO BRING TASTINGS TO PEOPLE WHO ENJOY BEER AND GOOD FOOD AMERICAN FESTIVAL CAFE IN MANHATTAN BEGAN HOLDING BEER FESTIVALS EIGHT YEARS AGO AND NOW OFFERS SEVEN SUCH DINNERS ANNUALLY THE DINNERS FEATURING BEER AND FOOD TASTINGS OVERSEEN BY THE OWNER OF A MICROBREWERY ARE GOOD FOR CUSTOMER INTEREST SAYS JOHN HARDING WHO ORGANIZES THE EVENTS FOR AMERICAN FESTIVAL LOCAL ESTABLISHMENTS KNOWN AS BREW PUBS HAVE ENJOYED GREAT SUCCESS IN THE LAST DECADE USING BEER MADE ON THE PREMISES TO ATTRACT DINERS ACCORDING TO THE INSTITUTE FOR BREWING STUDIES THERE ARE NOW 210 SUCH PUBS NATIONWIDE COMPARED WITH ONLY THREE A DECADE AGO BUT NOW BREW PUBS ARE FINDING THAT BEER ALONE IS NOT ENOUGH TO KEEP THEIR CUSTOMERS HAPPY MANY BREW PUBS FOCUS TOO MUCH ON THE BEER AT THE EXPENSE OF THE FOOD AND I SEE THAT REVERSING SAYS SCOTT BOLES COOWNER OF LAZLO'S A LINCOLN NEB RESTAURANT WITH A BREWERY ON ITS PREMISES THE NOVELTY OF THE MICROBREWERY IS WHAT GETS THEM IN THE DOOR BUT IT'S THE QUALITY OF THE FOOD THAT HOOKS THEM MR BOLES SAYS HE AND HIS PARTNER EXPECTED ANNUAL REVENUE OF ABOUT 800000 TO 900000 WHEN THEY OPENED LAZLO'S TWO YEARS AGO HE SAYS THE RESTAURANT WHICH OFFERS MEATS GRILLED OVER A HICKORY FIRE HAS ANNUAL REVENUE OF ABOUT 3 MILLION ONE NORTHERN CALIFORNIA RESTAURANT CHAIN GORDON BIERSCH SPECIALIZES IN MATCHING ASIAN CUISINES WITH ITS OWN MICROBREWED BEER THE CHAIN HAS GROWN FROM ONE RESTAURANT FIVE YEARS AGO TO THREE TODAY ILANA SARAF GORDON BIERSCH'S EXECUTIVE CHEF SAYS THE CHAIN HAS ANNUAL REVENUE OF ABOUT 10 MILLION CHEFS AT OTHER RESTAURANTS OFFERING SPECIALTY BEERS SERVE A WIDE VARIETY OF BREWBASED DISHES B MOLOCH HEATHMAN BAKERY & PUB IN PORTLAND ORE USES BEER AS AN INGREDIENT IN ITS PIZZA DOUGH THE RESTAURANT WHICH SAYS IT HAS ANNUAL REVENUE OF ABOUT 25 MILLION ALSO PREPARES SPICIER OR HEARTIER DISHES AN ENGLISH RAREBIT IN AN ALE SAUCE FOR EXAMPLE TO ATTRACT PATRONS WITH A TASTE FOR BEER IT'S EASIER TO MATCH FOOD WITH WINE BECAUSE ALL OF THE GROUND RULES ARE ALREADY THERE SAYS ERIC STENBERG B MOLOCH'S CHEF WITH BEER YOU'RE EXPERIMENTING MUCH MORE 9306030053 930603 WHO'S NEWS GOLDEN CYCLE GOLD CORP GOLDEN CYCLE GOLD CORP COLORADO SPRINGS COLO ALAN P PLOESSER 69 YEARS OLD WAS NAMED CHAIRMAN OF THIS MINING CONCERN SUCCEEDING REX H HAMPTON 74 WHO RETIRES EFFECTIVE AUG 1 MR PLOESSER HAS BEEN A DIRECTOR OF THE COMPANY SINCE 1989 AND PREVIOUSLY WORKED AS VICE PRESIDENTOPERATIONS FOR PHILEX MINING CORP AND FOR NORTH DAVAO MINING CORP MR HAMPTON WHO WILL REMAIN A GOLDEN CYCLE DIRECTOR HAS BEEN CHAIRMAN FOR THE PAST FIVE YEARS AND PRESIDENT SINCE 1980 THE COMPANY ALSO SAID BIRL W WORLEY JR A DIRECTOR SINCE 1980 WAS NAMED PRESIDENT AND CHIEF EXECUTIVE FILLING MR HAMPTON'S OTHER POSTS MR WORLEY 62 HAS BEEN A MINING CONSULTANT TO THE COMPANY SINCE 1983 9306030052 930603 BUSINESS BRIEF BAUSCH & LOMB INC UNIT AND DURA WILL MARKET DURA'S OPTHALMIC MEDICINE BAUSCH & LOMB INC SAID ITS BAUSCH & LOMB PHARMACEUTICALS UNIT HAS SIGNED AN AGREEMENT WITH DURA PHARMACEUTICALS INC SAN DIEGO TO COMARKET DURA'S PENTYDE OPTHALMIC SOLUTION AN ALLERGY DRUG BASED IN ROCHESTER NY BAUSCH & LOMB SAID IT WILL MARKET THE DRUG TO EYECARE PROFESSIONALS DURA WILL MARKET IT TO ALLERGISTS AND RESPIRATORY PHYSICIANS THE COMPANY SAID AN EARLIER AGREEMENT PROVIDED FOR ONLY BAUSCH & LOMB TO MARKET THE DRUG DURA DEVELOPS AND MARKETS PHARMACEUTICALS DRUG DELIVERY SYSTEMS AND MEDICAL DEVICES FOR RESPIRATORY CONDITIONS BAUSCH & LOMB MAKES PERSONAL HEALTH AND MEDICAL PRODUCTS CONTACT LENSES OPTHALMIC PHARMACEUTICALS SUNGLASSES AND SPORTS OPTICS 9306030051 930603 BDM ENTERS ALLIANCE TO PRODUCE BATTERIES FOR ELECTRIC VEHICLES MCLEAN VA BDM TECHNOLOGIES INC SAID IT FORMED A JOINT VENTURE WITH ELECTROSOURCE INC THAT WILL PRODUCE HIGHPERFORMANCE LEADACID BATTERIES TO POWER ELECTRIC VEHICLES THE NEW COMPANY HORIZON BATTERY TECHNOLOGIES INC IS THE OUTGROWTH OF A PREVIOUSLY ANNOUNCED PARTNERSHIP BETWEEN BDM A TECHNOLOGY SERVICES COMPANY AND ELECTROSOURCE A DEVELOPER OF LEADACID BATTERY TECHNOLOGY ACCORDING TO ELECTROSOURCE THE HORIZON BATTERY PACKS WILL ALLOW ELECTRIC VEHICLES TO TRAVEL MORE THAN 100 MILES BETWEEN CHARGES AND ALLOW FOR 50 RECHARGE IN ABOUT EIGHT MINUTES OR A 99 RECHARGE IN 30 MINUTES 9306030050 930603 PACIFICORP COMPLETES NERCO SALE PORTLAND ORE PACIFICORP SAID IT COMPLETED THE SALE OF ITS 82 STAKE IN NERCO INC TO KENNECOTT CORP A UNIT OF LONDONBASED RTZ CORP FOR 384 MILLION OR 12 A SHARE PACIFICORP SAID KENNECOTT A COPPER PRODUCER PAID 159 MILLION IN CASH AND 225 MILLION IN THE FORM OF A NOTE TO BE REPAID BY A NERCO SUBSIDIARY KENNECOTT ALSO ASSUMED 690 MILLION OF NERCO DEBT NERCO IS A PORTLAND NATURALRESOURCES CONCERN AND RTZ IS A MINING CONCERN KENNECOTT SALT LAKE CITY ALSO COMPETED AN 85 MILLION PURCHASE OF THE 18 OF NERCO THAT HAD BEEN PUBLICLY HELD PACIFICORP SAID 9306030049 930603 PEPPERAND SALT JUST HAVE TO WAIT AND SI AND ALSO QUITE REDUNDANT 9306030047 930603 NRC ORDERS ACTION ON FAULTY INSTRUMENT AT NUCLEAR FACILITIES WASHINGTON THE NUCLEAR REGULATORY COMMISSION CITING EVIDENCE THAT CERTAIN NUCLEAR PLANT INSTRUMENTS CAN GIVE DRASTICALLY FALSE READINGS ORDERED OWNERS OF 35 PLANTS NATIONWIDE TO FIX THE PROBLEM THE AGENCY LAST YEAR HAD REQUIRED OWNERS OF SOCALLED BOILING WATER REACTORS TO STUDY THE PROBLEM AND SUBMIT PLANS FOR ACTION ON IT BY JULY 1993 THE NRC'S LATEST ACTION REQUIRES OPERATORS OF 35 SUCH PLANTS TO MODIFY THE QUESTIONABLE INSTRUMENTS DURING THE FIRST COLD SHUTDOWN FOR MAINTENANCE OR OTHER PROCEDURES THAT OCCURS AFTER JULY 30 THE AGENCY ALSO ORDERED UTILITIES OPERATING THE PLANTS TO TAKE VARIOUS STEPS BY JULY 10 TO PREVENT THE INSTRUMENTS FROM GIVING FALSE READINGS BEFORE THEY ARE FIXED THE PROBLEM INVOLVES INSTRUMENTS THAT MEASURE LEVELS OF WATER THAT COOL NUCLEAR FUEL IN REACTORS AN NRC SPOKESWOMAN SAID THE AGENCY'S CONCERN ABOUT THE INSTRUMENTS ROSE IN LIGHT OF RECENT EVIDENCE THAT THEIR WATER LEVEL READINGS CAN BE OFF BY 15 TO 20 FEET INSTEAD OF A FEW INCHES AS PREVIOUSLY BELIEVED THE NRC ALSO NOTED THAT ITS LEVEL OF CONCERN WAS INCREASED BY AN INCIDENT ON JAN 21 WHEN OPERATORS AT WASHINGTON PUBLIC POWER SUPPLY SYSTEM'S WNP2 NUCLEAR PLANT NEAR RICHLAND WASH OBSERVED A SUSTAINED WATER LEVEL INDICATION ERROR AS THE REACTOR WAS BEING COOLED DURING A ROUTINE SHUTDOWN CONCERN ABOUT THE INSTRUMENTS WAS FIRST RAISED BY PAUL BLANCH FORMER SUPERVISOR OF INSTRUMENTATION AND CONTROL ENGINEERING AT NORTHEAST UTILITIES HARTFORD CONN LAST MONTH THE NRC FINED NORTHEAST UTILITIES 100000 FOR HARASSING MR BLANCH AFTER HE RAISED SAFETY QUESTIONS ABOUT NUCLEAR POWER PLANTS MR BLANCH HAD RESIGNED IN FEBRUARY AFTER REACHING A SETTLEMENT WITH THE COMPANY 9306030046 930603 LSB INDUSTRIES CALLS DEBENTURES OKLAHOMA CITY LSB INDUSTRIES INC CALLED FOR THE REDEMPTION OF ALL OF ITS 22 MILLION OUTSTANDING 1375 SUBORDINATED DEBENTURES DUE 1995 THE COMPANY WHICH IS ENGAGED IN MANUFACTURING ENGINEERING MARKETING AND FINANCIAL SERVICE ACTIVITIES SAID THE DEBENTURES ARE TO BE REDEEMED JULY 1 FOR 1000 PRINCIPAL AMOUNT PLUS ACCRUED INTEREST 9306030045 930603 MONEY RATES THE KEY US AND FOREIGN ANNUAL INTEREST RATES BELOW ARE A GUIDE TO GENERAL LEVELS BUT DON'T ALWAYS REPRESENT ACTUAL TRANSACTIONS PRIME RATE 6 THE BASE RATE ON CORPORATE LOANS POSTED BY AT LEAST 75 OF THE NATION'S 30 LARGEST BANKS FEDERAL FUNDS 3 1/8 HIGH 3 1/16 LOW 3 1/16 NEAR CLOSING BID 3 1/8 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 308 30 TO 59 DAYS 311 60 TO 89 DAYS 315 90 TO 119 DAYS 320 120 TO 149 DAYS 324 150 TO 229 DAYS 330 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 317 30 DAYS 318 60 DAYS 322 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 265 TWO MONTHS 269 THREE MONTHS 285 SIX MONTHS 308 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 308 ONE MONTH 316 THREE MONTHS 331 SIX MONTHS BANKERS ACCEPTANCES 304 30 DAYS 308 60 DAYS 313 90 DAYS 315 120 DAYS 319 150 DAYS 322 180 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 5/16 3 3/16 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 7/16 3 5/16 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 3/16 ONE MONTH 3 5/16 THREE MONTHS 3 7/16 SIX MONTHS 3 13/16 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE TUESDAY JUNE 1 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 308 13 WEEKS 322 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 727 60 DAYS 736 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 515 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306030044 930603 WEDNESDAY'S MARKETS STOCKS BONDS ADVANCE A BIT DOLLAR IS UP BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL STOCK AND BOND PRICES INCHED HIGHER AND THE DOLLAR STRENGTHENED THE DOW JONES INDUSTRIAL AVERAGE GAINED 111 POINTS TO 355345 JUST A POINT SHY OF A RECORD STANDARD & POOR'S 500STOCK INDEX AND THE NASDAQ COMPOSITE INDEX CLIMBED TOO STOCK MARKET INVESTORS WERE CONFRONTED WITH CONTRADICTORY ECONOMIC NEWS RELEASED YESTERDAY THE INDEX OF LEADING ECONOMIC INDICATORS WAS WEAK FOR APRIL WHILE SALES OF NEW SINGLEFAMILY HOUSES SOARED SOME PROFITTAKING IS COMING INTO PLAY SAID JOSEPH BATTIPAGLIA CHIEF INVESTMENT STRATEGIST AT GRUNTAL & CO BUT BYRON WIEN INVESTMENT STRATEGIST AT MORGAN STANLEY EXPECTS FURTHER ADVANCES BECAUSE THIS MARKET TENDS TO TWIST ALMOST ANY EVENT INTO SOMETHING POSITIVE WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX GAINED 005 TO 10820 IN MAJOR MARKET ACTION STOCK PRICES ROSE IN TRADING OF 287 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE BOND PRICES ROSE A BIT THE YIELD ON THE TREASURY'S BENCHMARK 30YEAR ISSUE EASED TO 687 THE DOLLAR STRENGTHENED IN LATE NEW YORK TRADING TO 15978 MARKS AND 10720 YEN COMPARED WITH 15865 MARKS AND 10705 YEN TUESDAY 9306030042 930603 WHO'S NEWS BANKAMERICA CORP BANKAMERICA CORP SAN FRANCISCO JULIA CHANG BLOCH 51 YEARS OLD WAS NAMED GROUP EXECUTIVE VICE PRESIDENT CORPORATE COMMUNICATIONS AND GOVERNMENTAL AFFAIRS FOR BANK OF AMERICA THE PRINCIPAL UNIT OF THIS BANK HOLDING COMPANY MS BLOCH FORMERLY US AMBASSADOR TO NEPAL FILLS A NEW POSITION 9306030041 930603 INTERNATIONAL FRENCH TRADE SURPLUS WIDENS PARIS FRANCE'S FOREIGN TRADE SURPLUS WIDENED TO A SEASONALLY ADJUSTED 476 BILLION FRANCS 886 MILLION IN FEBRUARY FROM A REVISED 333 BILLIONFRANC SURPLUS THE PREVIOUS MONTH THE FRENCH CUSTOMS OFFICE REPORTED FOR THE YEAR THROUGH THE END OF FEBRUARY FRANCE'S TRADE SURPLUS WIDENED TO 809 BILLION FRANCS IN SEASONALLY ADJUSTED TERMS FROM 363 BILLION FRANCS IN THE COMPARABLE PERIOD OF 1992 9306030040 930603 CREDIT MARKETS BOND PRICES RISE SLIGHTLY AS INVESTORS IGNORE REPORT OF HUGE JUMP IN SALES OF NEW HOMES BY THOMAS D LAURICELLA AND TERENCE DONNELLY SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE TREASURY MARKET SHRUGGED OFF NEWS OF A HUGE JUMP IN NEWHOME SALES FOR APRIL AND ENDED TRADING YESTERDAY WITH MODEST PRICE GAINS THE BENCHMARK 30YEAR TREASURY BOND ROSE LESS THAN 1/8 POINT TO 103 3/32 TO YIELD 687 DOWN FROM 688 ON TUESDAY THE 10YEAR NOTE ROSE LESS THAN 1/8 POINT AS WELL TO FINISH AT 101 16/32 FOR A YIELD OF 603 DOWN FROM 605 THE HOUSING REPORT SHOWED A 227 JUMP IN NEWHOME SALES IN APRIL THE BIGGEST JUMP IN MORE THAN SIX YEARS VERY OFTEN SUCH A REPORT WOULD HAVE A NEGATIVE EFFECT ON BOND PRICES BECAUSE IT SUGGESTS THAT THE ECONOMY IS GAINING STRENGTH WHICH COULD LEAD TO GREATER INFLATIONARY PRESSURES BOND INVESTORS FEAR INFLATION BECAUSE IT EATS AWAY AT RETURNS OF FIXEDINCOME INVESTMENTS BUT TRADERS AND INVESTORS DIDN'T LET THE NEWS BOTHER THEM MOST PEOPLE DISSECTED THE DATA AND SAW THAT THE REBOUND WAS WEATHERRELATED AND THEY WERE HESITANT TO READ TOO MUCH INTO ONE MONTH'S DATA SAID KATHLEEN CAMILLI CHIEF ECONOMIST AT MARIA FIORINI RAMIREZ INC CAUTION AHEAD OF TOMORROW'S MAY EMPLOYMENT REPORT RESTRAINED TRADING ACTIVITY AFTER THE MARKET HAD DIGESTED THE HOUSING REPORT TRADERS QUICKLY TOOK THE ENTIRE MARKET LOWER IN RESPONSE TO THE MIDMORNING REPORT BUT LONG AND INTERMEDIATE ISSUES SOON RECOVERED HELPING THE MARKET REBOUND WAS A BELIEF THAT THE HOMESALES GAIN WAS AN EXAGGERATED BOUNCE BACK FROM WEATHERDEPRESSED READINGS IN PRIOR MONTHS SHORTTERM SECURITIES REMAINED UNDER PRESSURE FOR MUCH OF THE SESSION IN THE WAKE OF THE HOUSING DATA BUT BY THE END OF THE SESSION THEY TOO WERE BACK NEAR THE LEVELS OF LATE TUESDAY YOU DID HAVE SOME VOLATILITY CAUSED BY THE STRONGERTHANEXPECTED HOME SALES BUT THE MARKET WAS ABLE TO HANG IN THERE SAID KEVIN FLANAGAN A MONEY MARKET ECONOMIST AT DEAN WITTER REYNOLDS INC INTERMEDIATE SECURITIES PUT IN THE BEST PERFORMANCE YESTERDAY BOLSTERED BY MUNICIPAL DEFEASANCE PROGRAMS IN A DEFEASANCE PLAN STATE AND LOCAL MUNICIPALITIES TAKE ADVANTAGE OF THE LOWINTEREST RATE ENVIRONMENT BY ISSUING NEW DEBT TO REFUND OLDER HIGHERINTEREST SECURITIES BUT UNTIL THE OUTSTANDING SECURITIES CAN BE CALLED THE PROCEEDS FROM THE NEW ISSUANCE ARE INVESTED IN TREASURYS MEANWHILE THE FEDERAL RESERVE PURCHASED BILLS IN THE OPEN MARKET IN ORDER TO MEET A SEASONAL SHORTAGE OF RESERVES IN THE BANKING SYSTEM THE ACTION HAD BEEN WIDELY ANTICIPATED BY ANALYSTS AND HAD NO MONETARY POLICY SIGNIFICANCE OVERALL IT WAS A GENERALLY QUIET SESSION DEALERS SAID IT WAS FAIRLY UNEVENTFUL SAID ANTHONY KARYDAKIS SENIOR FINANCIAL ECONOMIST AT FIRST CHICAGO CAPITAL MARKETS WE HARDLY MOVED ON BALANCE MANY INVESTORS REMAIN SIDELINED AHEAD OF THE KEY EMPLOYMENT DATA DUE OUT TOMORROW I DON'T THINK INVESTORS WANT TO TAKE TOO MANY NEW POSITIONS SAID MR FLANAGAN OF DEAN WITTER UNTIL THE EMPLOYMENT DATA ARE RELEASED WE'LL PROBABLY BE CONFINED TO NARROW RANGES HE SAID FORECASTS FOR TOMORROW'S REPORT CENTER ON AN INCREASE IN NONFARM PAYROLL EMPLOYMENT OF 155000 FOR MAY WHICH WOULD FOLLOW A RISE OF 119000 IN APRIL BUT AMID CONTINUING NERVOUSNESS ABOUT A POSSIBLE TIGHTENING OF THE FED'S MONETARY POLICY FOLLOWING SEVERAL MONTHS OF DATA SHOWING A FASTER PACE OF INFLATION INVESTORS ARE LIKELY TO QUICKLY TURN THEIR ATTENTION FROM THE JOBS REPORT TO THE PRODUCER AND CONSUMER PRICE REPORTS DUE OUT MORE THAN A WEEK FROM NOW THAT MAY MEAN THAT THE EMPLOYMENT REPORT WILL NOT GARNER THE ATTENTION IT USUALLY RECEIVES THIS MONTH MAY BE FAIRLY PECULIAR IN THAT THE EMPLOYMENT REPORT IS NOT THE MAIN REPORT OF THE MONTH SAID MR KARYDAKIS OF FIRST CHICAGO PEOPLE ARE NOT PARTICULARLY EXCITED ABOUT THE EMPLOYMENT REPORT THEY REALIZE THAT THE MAIN EVENT OF THE MONTH IS GOING TO BE THE INFLATION NUMBERS AS A RESULT UNLESS THE PAYROLL REPORT COMES IN ESPECIALLY FAR FROM EXPECTATIONS THE MARKET'S RESPONSE IS EXPECTED TO BE MUTED YOU MAY HAVE A RELATIVELY SUBDUED REACTION TO ANY MODERATE SURPRISES MR KARYDAKIS SAID VAN SILER A MANAGING PARTNER AT RJ WALLS & CO PRINCETON NJ ARGUED THAT UNTIL THE GOVERNMENT INFLATION REPORTS ARE RELEASED ON JUNE 11 AND 15 THE MARKET WILL CONTINUE TO FOCUS ON OTHER INFLATION BAROMETERS SUCH AS GOLD AND OTHER COMMODITIES IF PAYROLL EMPLOYMENT COMES IN BETWEEN 150000 AND 200000 I'M NOT SURE THE MARKET WOULD RESPOND MUCH MR SILER SAID BUT IF GOLD WENT FROM ITS CURRENT PRICE OF 37080 TO EITHER 364 OR 378 YOU WOULD HAVE SIGNIFICANT MOVEMENT IN THE MARKET HE SAID BEFORE THE MARKET GETS TO SEE THE MAY EMPLOYMENT REPORT TRADERS WILL HAVE TO CONTEND WITH SEVERAL SETS OF ECONOMIC DATA TODAY SLATED TO BE RELEASED THIS MORNING IS THE WEEKLY JOBLESSCLAIMS REPORT FOLLOWED UP BY LATEMAY CAR SALES FIGURES DUE OUT OVER THE COURSE OF SESSION LATE IN THE DAY THE FED WILL RELEASE THE LATEST WEEKLY BANKING AND MONEYSUPPLY FIGURES MEANWHILE THE TREASURY SOLD 701 BILLION OF 13DAY CASH MANAGEMENT BILLS AT AN AVERAGE DISCOUNT RATE OF 304 HERE ARE THE RESULTS OF THAT SALE RATES ARE DETERMINED BY THE DIFFERENCE BETWEEN THE PURCHASE PRICE AND FACE VALUE THUS HIGHER BIDDING NARROWS THE INVESTOR'S RETURN WHILE LOWER BIDDING WIDENS IT THE PERCENTAGE RATES ARE CALCULATED ON A 360DAY YEAR WHILE THE COUPONEQUIVALENT YIELD IS BASED ON A 365DAY YEAR THE BILLS ARE DATED JUNE 4 AND MATURE JUNE 17 1993 ELECTRIC UTILITIES WERE ACTIVE BORROWERS YESTERDAY TAKING ADVANTAGE OF A DECLINE IN INTERMEDIATE AND LONGTERM INTEREST RATES A DAY EARLIER YESTERDAY'S NEW ISSUES ALSO INCLUDED A NEW 75 MILLION OFFERING BY HERCULES INC WHOSE PRODUCTS INCLUDE SPECIALTY CHEMICALS PLASTICS AND AEROSPACE PRODUCTS AMONG THE UTILITIES FLOATING NEW DEBT YESTERDAY WERE WEST PENN POWER CO A UNIT OF ALLEGHENY POWER SYSTEM INC SOUTHERN CALIFORNIA ELECTRIC & GAS CO A UNIT OF SCANA CORP AND PUBLIC SERVICE CO OF OKLAHOMA A UNIT OF CENTRAL & SOUTH WEST CORP SEASONED CORPORATES EDGED HIGHER IN MODERATE ACTIVITY MOST INVESTMENTGRADE AND JUNK BONDS ENDED FLAT TO 1/8 POINT HIGHER ELECTRIC UTILITIES HAVE OFFERED 234 BILLION OF NEW DEBT SO FAR THIS YEAR UP NEARLY 80 FROM THE SAME PERIOD LAST YEAR ACCORDING TO SECURITIES DATA CO HOWEVER ISSUANCE BY UTILITIES LIKE THAT OF OTHER CORPORATE BORROWERS HAS FALLEN OFF LATELY AND IS NOT EXPECTED TO RISE AGAIN SOON ANALYSTS SAID UTILITIES OFFERED 19 BILLION OF DEBT IN MAY DOWN DRAMATICALLY FROM JUST OVER 5 BILLION IN APRIL IN MARCH UTILITIES FLOATED A STUNNING 74 BILLION OF NEW DEBT LARGELY THE RESULT OF AN ACROSSTHECURVE DECLINE IN INTEREST RATES IN JANUARY AND FEBRUARY ANALYSTS SAID THAT ELECTRICUTILITY ISSUANCE WILL NOT LIKELY RETURN TO THAT PACE SOON UNLESS INTEREST RATES FALL SUBSTANTIALLY FURTHER BECAUSE MANY UTILITIES HAVE ALREADY COMPLETED THEIR REFINANCING PLANS FOR THIS YEAR HERCULES OFFERED 75 MILLION OF 10YEAR NOTES PRICED AS 6625 SECURITIES TO YIELD 6635 THE NONCALLABLE ISSUE WAS PRICED AT A SPREAD OF 058 PERCENTAGE POINT ABOVE THE TREASURY 10YEAR 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 JP MORGAN SECURITIES INC THE COMPANY SAID SALE PROCEEDS WOULD BE USED FOR GENERAL CORPORATE PURPOSES THE MUNICIPAL BOND MARKET WAS HIT BY THE HEAVIEST SINGLEDAY ISSUANCE IN MORE THAN A WEEK YESTERDAY BUT ACTIVELY TRADED MUNIS HELD FIRM AND CLOSED STEADY TO 3/8 POINT HIGHER THE SESSION'S NEW SUPPLY WHICH EXCEEDED 2 BILLION WAS DOMINATED BY THE PUERTO RICO PUBLIC BUILDINGS AUTHORITY'S 70451 MILLION OF REFUNDING BONDS ISSUANCE HAD SLOWED IN RECENT SESSIONS BECAUSE INFLATION JITTERS TRIGGERED A YIELD UPTICK IN BOTH THE MUNI AND TREASURY BOND MARKETS IN SECONDARY TRADING THE LOS ANGELES METROPOLITAN TRANSPORTATION AUTHORITY'S 500 REVENUE REFUNDING BONDS OF 2021 CLOSED 1/4 FIRMER AT 90 1/4 TO YIELD 567 THE PUERTO RICO PUBLIC BUILDINGS AUTHORITY'S REFUNDING BONDS WERE BROUGHT TO MARKET BY A FIRST BOSTON CORP GROUP THE PUERTO RICO ISSUE COMPRISES 1271 MILLION OF SERIES L REVENUE REFUNDING BONDS AND 5774 MILLION OF SERIES M PUBLIC EDUCATION AND HEALTH FACILITIES REFUNDING BONDS THE SERIES L BONDS WERE PRICED TO YIELD FROM 400 IN 1996 TO 585 IN 2016 AND THE SERIES M BONDS WERE PRICED TO YIELD FROM 460 IN 1998 TO 585 IN 2015 AND 2021 MOODY'S INVESTORS SERVICE INC HAS RATED THE ISSUE BAA1 AND STANDARD & POOR'S CORP HAS RATED IT SINGLEA PRICES OF MORTGAGEBACKED SECURITIES FIRMED IN THE LATTER PORTION OF YESTERDAY'S SESSION PRICES FELL MOMENTARILY EARLIER IN THE DAY ON THE BIG JUMP IN NEW SINGLEFAMILY HOME SALES BUT THE INCREASE WAS WIDELY DISCOUNTED BY MORTGAGE TRADERS TRADERS DISREGARDED THE NEWS BECAUSE NEWHOME SALES DO NOT AFFECT MORTGAGE LOAN REFINANCINGS SAID LAKHBIR HAYRE HEAD OF MORTGAGE RESEARCH AT PRUDENTIAL SECURITIES INC IN SECONDARY TRADING GOVERNMENT NATIONAL MORTGAGE ASSOCIATION 7 ISSUES ROSE 2/32 TO 100 14/32 WHILE FEDERAL HOME LOAN MORTGAGE CORP GOLD 7 ISSUES AND FEDERAL NATIONAL MORTGAGE ASSOCIATION 7 ISSUES EACH ADVANCED 5/32 TO 100 22/32 AND 100 19/32 RESPECTIVELY SPREADS BETWEEN CURRENT COUPONS AND TREASURYS REMAINED AT LEVELS REACHED TUESDAY THE PRIMARY MARKET REMAINED QUIET WITH NO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS ANNOUNCED ONE INCREASE OF AN EXISTING REMIC WAS ANNOUNCED A 164 MILLION INCREASE IN FANNIE MAE 199365 BACKED BY THAT AGENCY'S 20YEAR 7 COUPONS 9306030039 930603 COMMODITIES PLATINUM PRICES PLUNGE AGAIN ON PROFITTAKING WEAK US INDICATORS GOLD DECLINES MODESTLY BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PLATINUM FUTURES PRICES TUMBLED AGAIN THE JULY CONTRACT PLUNGED 840 TO 38370 AN OUNCE FOLLOWING TUESDAY'S 770 DROP GOLD FUTURES DECLINED MODESTLY THE ACTIVE AUGUST CONTRACT DROPPED 50 CENTS AN OUNCE TO 37080 FOLLOWING TUESDAY'S SHARP 9 FALL TRADERS SAID THE TWODAY SLUMP IN PLATINUM PRICES ON THE NEW YORK MERCANTILE EXCHANGE WAS THE RESULT OF HEAVY PROFITTAKING BY COMMODITY FUNDS WHICH ARE MANAGED POOLS OF INVESTOR MONEY THE FUNDS HAVING SEEN PLATINUM FAIL TO SETTLE ABOVE 400 LAST WEEK HAVE DECIDED TO TAKE SOME PROFITS SAID BERNARD SAVAIKO A SENIOR COMMODITY ANALYST WITH PAINEWEBBER ON FRIDAY THE ACTIVE JULY PLATINUM FUTURES CONTRACT TRADED AS HIGH AS 405 BEFORE SETTLING AT 39980 THE STRONGEST SETTLEMENT SINCE APRIL 1991 MR SAVAIKO SAID A WEAKERTHANEXPECTED 01 RISE IN THE GOVERNMENT'S INDEX OF LEADING ECONOMIC INDICATORS FOR APRIL DENTED SUPPORT FOR PLATINUM WHICH AMONG THE PRECIOUS METALS IS THE MOST WIDELY USED BY INDUSTRY MANY ECONOMISTS HAD PREDICTED THAT THIS ECONOMIC FORECASTING GAUGE WOULD INCREASE AROUND 04 TRADERS AND FUNDS MR SAVAIKO SAID ALSO WERE SPOOKED YESTERDAY BY SPECULATION THAT RUSSIAN PRODUCERS HAD SOLD HEAVILY SINCE LATE LAST WEEK WILLIAM SLATE VICE PRESIDENT OF ALMAZ USA INC OLD GREENWICH CONN A UNIT OF A RUSSIANOWNED COMPANY THAT SELLS PLATINUMGROUP METALS DENIED THE RUMOR OF RUSSIAN SELLING THERE'S BEEN NO PARTICULAR SELLING OF RUSSIAN PLATINUM HE SAID ADDING THE FALL IN PRICE WAS DUE TO CERTAIN LARGE FUNDS LIQUIDATING SOME OF THEIR HOLDINGS OF PLATINUM FUTURES MR SAVAIKO SAID THE MARKET SHOULD FOCUS ITS ATTENTION ON SUSPECTED RECENT SALES BY SOUTH AFRICAN PRODUCERS I WOULD BE MORE WORRIED ABOUT PRODUCER SELLING BY SOUTH AFRICA THE WORLD'S LARGEST PRODUCER HE SAID SOUTH AFRICA'S DEPARTMENT OF MINERAL AND ENERGY AFFAIRS REPORTED YESTERDAY A 16 INCREASE IN THE NATION'S OUTPUT OF PLATINUMGROUP METALS IN MARCH FROM FEBRUARY TO 673 TONS MR SAVAIKO SAID THAT GROWING SOUTH AFRICAN OUTPUT LENDS CREDENCE TO THE NOTION THAT SOUTH AFRICAN PRODUCERS HAVE BEEN SELLING INTO STRENGTH TRADERS AND ANALYSTS SAID THE GOLD MARKET SEEMED TO REGAIN ITS FOOTING AFTER TUESDAY'S LARGE SELLOFF ON NEW YORK'S COMMODITY EXCHANGE WITH SIGNIFICANT BUYING SUPPORT SEEN AT LEVELS AROUND 370 FEW PEOPLE IN THE MARKET SAID THEY HAVE DETECTED ANY LARGESCALE DEFECTION FROM THE MARKET BY THE LARGE COMMODITY FUNDS GOLD HAS HAD A LONG POSITIVE RUN AND IT'S UNLIKELY THAT THE FUNDS WOULD SIMPLY GET OUT BECAUSE OF A 9 CORRECTION SAID GLENN DUBIN PARTNER IN DUBIN & SWIECA CAPITAL MANAGEMENT THE FUNDS HAVE BEEN LONG FOR A WHILE THEY HAVE TO BE ENCOURAGED BY THE FACT THAT TUESDAY'S PULLBACK HAS NOT HAD ANY FOLLOWTHROUGH GOLD WOULD HAVE TO RETRACE SIGNIFICANTLY BEFORE IT BREACHED CERTAIN EXIT LEVELS FOR THE FUNDS YESTERDAY GOLD FOR AUGUST DELIVERY TRADED IN A RANGE OF 36770 TO 37270 IN OTHER COMMODITY MARKETS YESTERDAY LUMBER LUMBER FUTURES PRICES SURGED THE DAILY LIMIT REACTING TO A GOVERNMENT REPORT SHOWING THAT NEW HOME SALES ROSE 227 IN APRIL THE INCREASE AN INDICATION OF ROBUST DEMAND FOR HOUSING COULD PREVIEW HEAVY BUYING OF LUMBER BY CONSTRUCTION COMPANIES ANALYSTS SAID THE HOME SALES NUMBER ALTHOUGH SKEWED SOMEWHAT BY WEATHER REPRESENTED ABOUT 751000 NEW UNITS ON AN ANNUAL BASIS OR ABOUT 100000 MORE UNITS A YEAR THAN THE MARKET HAD ANTICIPATED AS A RESULT THE RECENTLY WEAK LUMBER MARKET REGAINED SOME STRENGTH AT THE CHICAGO MERCANTILE EXCHANGE LUMBER FOR JULY DELIVERY ROSE 10 TO 27980 PER THOUSAND BOARD FEET ENERGY PETROLEUM FUTURES PRICES SETTLED LOWER ON THE NEW YORK MERCANTILE EXCHANGE IN LIGHT TRADING THAT WAS DRIVEN BY TECHNICAL FACTORS AND BY WIDESPREAD ANTICIPATION OF A BEARISH GASOLINE INVENTORY REPORT FROM THE AMERICAN PETROLEUM INSTITUTE THE SLUMP IN GASOLINE PULLED THE REST OF THE ENERGY COMPLEX DOWN JULY GASOLINE FELL 064 CENT TO SETTLE AT 5833 CENTS A GALLON CRUDE OIL FOR JULY DELIVERY LOST 21 CENTS TO FINISH AT 2003 A BARREL AND JULY HEATING OIL WAS OFF 034 CENT A GALLON SETTLING AT 5480 CENTS COPPER FUTURES PRICES CLIMBED ON MARKET FEARS OF LABOR UNREST AT A MAJOR MINING AND REFINING COMPLEX IN CHILE ON NEW YORK'S COMMODITY EXCHANGE COPPER FOR JULY DELIVERY SETTLED ONE CENT HIGHER AT 8140 CENTS A POUND IN THIN TRADING THE MARKET ROSE ON FEARS THAT TALKS TO RESOLVE A LABOR DISPUTE MAY BE PROTRACTED AT THE CHUIQACAMATA COMPLEX RUN BY CODELCO SAID JAMES STEEL COMMODITY ANALYST WITH REFCO CODELCO IS THE CHILEAN STATE MINING COMPANY MR STEEL SAID THAT THE FEARS WERE OVERDONE AND THAT COPPER COULD SOON RETREAT AMID A GLUTTED MARKET AND WEAK INDUSTRIAL DEMAND WORLDWIDE THE LABOR TALKS ARE IN THEIR VERY EARLY STAGES AND ONE CAN'T ASSUME THERE IS GOING TO BE ANY STRIKE HE SAID LABOR RELATIONS HAVE TENDED TO BE VERY GOOD AT THE COMPANY HE SAID THAT GLOBAL COPPER INVENTORIES ARE LARGE AND THAT THERE WILL BE PLENTY OF PRODUCER SELLING IN THE WEEKS AHEAD TO MEET ANY RALLY 9306030037 930603 AUDIO/VIDEO'S SALES UP DAYTON OHIO AUDIO/VIDEO AFFILIATES INC SAID ITS SAMESTORE SALES OR SALES IN STORES OPEN A YEAR OR MORE ROSE 65 IN MAY TO 152 MILLION FROM 143 MILLION A YEAR AGO TOTAL SALES FOR MAY ROSE 24 TO 18 MILLION FROM 145 MILLION FOR THE YEAR TO DATE SAMESTORE SALES INCREASED 7 WHILE TOTAL SALES ROSE 22 TO 687 MILLION FROM 563 MILLION AUDIO/VIDEO'S FISCAL YEAR ENDS JAN 31 9306030036 930603 TAMBRANDS INC CHIEF IS OUSTED AMID QUESTIONS SALES OF STOCK BY INSIDERS PRECEDED A SHARP CUT IN EARNINGS FORECAST BY SUEIN L HWANG STAFF REPORTER OF THE WALL STREET JOURNAL MARTIN FC EMMETT CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF TAMBRANDS INC WAS ABRUPTLY OUSTED BY THE COMPANY'S BOARD OF DIRECTORS AS THE MAKER OF TAMPAX TAMPONS SLASHED ITS EARNINGS FORECASTS FOR THE SECOND QUARTER AND YEAR ALTHOUGH A COMPANY STATEMENT SAID THAT MR EMMETT 58 YEARS OLD RESIGNED PEOPLE CLOSE TO THE BOARD SAID HE WAS FORCED OUT DURING A HASTILY SUMMONED EMERGENCY DIRECTORS' MEETING TUESDAY AT COMPANY HEADQUARTERS IN WHITE PLAINS NY HOWARD B WENTZ JR AN OUTSIDE DIRECTOR AND LONGTIME CRITIC OF MR EMMETT WAS ELECTED CHAIRMAN AND THE BOARD IS LOOKING FOR A NEW CEO MR WENTZ 63 SAID IN A STATEMENT THAT THE BOARD WILL CONSIDER INTERNAL AND EXTERNAL CANDIDATES OVER THE NEXT 60 TO 90 DAYS TAMBRANDS WHICH HAD BEEN PROJECTING 15 EARNINGS GROWTH EARLIER THIS YEAR SAID IT NOW EXPECTS SECONDQUARTER EARNINGS TO BE SIGNIFICANTLY BELOW LAST YEAR'S NET INCOME OF 72 CENTS A SHARE AND YEAR PROFITS TO FALL SHORT OF 1992'S 306 A SHARE THE COMPANY ATTRIBUTED THE SHORTFALL TO A REDUCTION AND LIQUIDATION OF STORES' INVENTORY INCREASED MARKETING EXPENDITURES AND COMPETITIVE PRESSURES MR EMMETT COULDN'T BE REACHED FOR COMMENT BUT HIS OUSTER ALSO COMES AMID MOUNTING ALLEGATIONS FROM COMPANY INSIDERS AND FORMER TAMBRANDS EXECUTIVES THAT MR EMMETT MISLED WALL STREET ABOUT THE COMPANY'S PERFORMANCE MISMANAGED THE COMPANY'S OPERATIONS AND LAVISHED SPENDING ON PERKS FOR HIMSELF AND HIS INNER CIRCLE MOREOVER PEOPLE CLOSE TO THE COMPANY POINTED TO STOCK SALES BY MR EMMETT AND ANOTHER EXECUTIVE BEFORE THE COMPANY ISSUED UNFAVORABLE NEWS PAUL E KONNEY TAMBRANDS' SENIOR VICE PRESIDENT GENERAL COUNSEL AND SECRETARY LEFT ON TUESDAY NIGHT AND ISN'T EXPECTED TO RETURN UNTIL JULY 1 ON MARCH 22 MR KONNEY EXERCISED STOCK OPTIONS TO BUY 9128 SHARES AND IMMEDIATELY SOLD THEM FOR 6175 EACH THE NEXT DAY TAMBRANDS HELD A CLOSEDDOOR ANALYSTS' MEETING AT WHICH ANALYSTS PERCEIVED TOP MANAGEMENT TO BE RETREATING FROM EARLIER ROSY PROFIT FORECASTS THE STOCK PLUMMETED 11 OVER THE NEXT TWO DAYS YESTERDAY TAMBRANDS DECLINED TO EXPLAIN THE REASONS FOR MR KONNEY'S ABSENCE AND MR WENTZ DIDN'T RETURN TELEPHONE CALLS SEEKING COMMENT ON THE SHAKEUP SOURCES SAY TAMBRANDS' DIRECTORS A NUMBER OF WHOM WERE HANDPICKED BY MR EMMETT DURING HIS FOUR YEARS AT THE COMPANY'S HELM TURNED AGAINST HIM LAST WEEK WHEN DIRECTORS WERE BLINDSIDED BY THE DOWNBEAT NEWS ABOUT THE SECOND QUARTER IT WASN'T IMMEDIATELY CLEAR WHETHER THE BOARD'S MOVE TO OUST MR EMMETT STEMMED SOLELY FROM THE COMPANY'S EARNINGS OUTLOOK LIKE MR KONNEY MR EMMETT ALSO CASHED IN A SIGNIFICANT PORTION OF HIS STOCK OPTIONS AT AN OPPORTUNE TIME LAST DECEMBER MR EMMETT EXERCISED OPTIONS TO BUY 150000 SHARES THEN SOLD THEM OVER A WEEK AT MORE THAN 64 A SHARE THREE MONTHS LATER WHEN IT BECAME CLEAR THAT TAMBRANDS WASN'T GOING TO MEET ITS 1993 EARNINGS TARGET INVESTORS BEGAN TO POUND THE STOCK IN TRADING ON THE NEW YORK STOCK EXCHANGE YESTERDAY TAMBRANDS SHARES CLOSED DOWN 2375 AT 42875 ABOUT A 30 DROP SINCE DECEMBER WHEN TAMBRANDS SHARES WERE TRADING IN THE 64 RANGE TAMBRANDS OFFICIALS REFUSED TO COMMENT ON MR EMMETT'S EXERCISE OF OPTIONS PEOPLE IN THE COMPANY HAD OBVIOUSLY BEEN AWARE FOR SOME TIME BEFORE DECEMBER THAT TAMPAX MARKET SHARE WAS ERODING AT AN ALARMING RATE SAYS A FORMER TAMBRANDS SALES EXECUTIVE PEOPLE IN THE COMPANY KNEW IN JANUARY THAT TAMBRANDS' STOCK HAD PEAKED IN DECEMBER ADDS ANOTHER FORMER EXECUTIVE A NATIVE OF SOUTH AFRICA MR EMMETT JOINED TAMBRANDS IN 1989 FROM SECURITY PACIFIC CORP'S SECURITY PACIFIC BURNS FRY INVESTMENT BANKING UNIT IN NEW YORK BUT BEFORE THAT MR EMMETT WAS A TOP EXECUTIVE AT THE FORMER STANDARD BRANDS WHICH LATER MERGED WITH NABISCO TO BECOME NABISCO BRANDS MR EMMETT PICKED UP MUCH OF HIS FREEWHEELING STYLE FROM HIS BOSS THERE F ROSS JOHNSON BEST KNOWN FOR LOSING OUT IN THE HIGHSTAKES BATTLE WITH KOHLBERG KRAVIS ROBERTS & CO TO TAKE OVER THE COMPANY NOW RJR NABISCO HOLDINGS CORP AT TAMBRANDS INSIDERS SAY MR EMMETT EFFECTIVELY RECREATED THE LAVISH CORPORATE SPENDING AND PERKS THAT WERE PAR FOR THE COURSE AT NABISCO BRANDS COMPANY INSIDERS SAY THE BOARD HAD GROWN UNEASY WITH MR EMMETT'S SPENDING AT A TIME WHEN COMPETITIVE PRESSURES WERE BUFFETING THE COMPANY'S FLAGSHIP TAMPAX BRAND FORMER EMPLOYEES SAY MR EMMETT THOUGHT NOTHING OF DRY CLEANING THE DRAPES IN HIS GREENWICH CONN HOME AT COMPANY EXPENSE FOR EXAMPLE OR CHARTERING A JET TO VIRGINIA FOR A MULTIDAY GOLF TRIP THAT ALSO INCLUDED HIS ANNUAL PHYSICAL EXAMINATION AT THE COMPANY'S EXPENSE THEY FELT THE WAY THE COMPANY WAS BEING RUN WAS TOO LAVISH AND EXTRAVAGANT IN THIS ENVIRONMENT SAYS A PERSON CLOSE TO THE BOARD'S DELIBERATIONS THE SAME INSIDERS SAY EMPLOYEE MORALE AT TAMBRANDS HAS ALSO BEEN BATTERED BY A SUCCESSION OF LAYOFFS AND MR EMMETT'S FROSTY DICTATORIAL MANAGING STYLE IN HIS FIRST MEETINGS WITH ANALYSTS SHORTLY AFTER JOINING THE COMPANY MR EMMETT SAID THE COMPANY WOULD MEET ITS TARGET OF 15 ANNUAL EARNINGS GROWTH IN PART BY RAISING THE RETAIL PRICES OF TAMPAX CLOSER TO THAT OF RIVAL PLAYTEX WHICH HAD TRADITIONALLY COST 50 MORE TAMBRANDS HAS GRADUALLY RAISED PRICES IN RECENT YEARS ONLY TO FIND CONSUMERS FAR LESS BRANDLOYAL THAN IT HAD EXPECTED BRANDS LIKE PLAYTEX AS WELL AS PRIVATELABEL TAMPONS GAINED MARKET SHARE AT TAMBRANDS' EXPENSE DURING THE FIRST QUARTER OF 1993 IN HIS STATEMENT YESTERDAY MR WENTZ SAID TAMPAX IS ONE OF THE WORLD'S BEST KNOWN AND MOST TRUSTED CONSUMER BRANDS ADDING THAT THE COMPANY CONTINUES TO BE HIGHLY PROFITABLE AND IS EXTRAORDINARILY SOLID FROM A FINANCIAL PERSPECTIVE WITH STRONG CASH FLOW AND A CONSERVATIVE BALANCE SHEET HE SAID THE COMPANY'S BOARD WILL WORK WITH MANAGEMENT ON MARKETING INITIATIVES TO RESTORE MARKET SHARE AND BUILD THE COMPANY'S SUPERB BRAND FRANCHISE 9306030035 930603 STRYKER TO BUY MATSUMOTO STOCK KALAMAZOO MICH STRYKER CORP SAID IT AGREED TO PURCHASE 20 OF THE OUTSTANDING SHARES OF MATSUMOTO MEDICAL INSTRUMENTS INC A DISTRIBUTOR OF MEDICAL DEVICES IN OSAKA JAPAN IN A TRANSACTION VALUED AT 30 MILLION STRYKER IS A MAKER OF SPECIALTY SURGICAL AND MEDICAL PRODUCTS 9306030034 930603 BUSINESS BRIEF ADAPTEC INC RECORD PROFIT AND REVENUE EXPECTED IN ITS 1ST QUARTER ADAPTEC INC A MAKER OF ELECTRONIC CIRCUITRY AND SOFTWARE FOR PERSONAL COMPUTERS SAID IT EXPECTS TO REPORT RECORD EARNINGS AND REVENUE FOR ITS FIRST QUARTER ENDING JULY 2 ADAPTEC'S STOCK JUMPED 2 ON THE REPORT TO CLOSE AT 22125 A SHARE IN NATIONAL OVERTHECOUNTER TRADING IN ITS YEAREARLIER QUARTER ADAPTEC EARNED 11 MILLION ON SALES OF 694 MILLION THE COMPANY POSTED RECORD RESULTS FOR ITS FOURTH QUARTER ENDED MARCH 31 WHEN IT REPORTED NET INCOME OF 134 MILLION ON SALES OF 849 MILLION ADAPTEC ALSO SAID IT WILL CANCEL EFFORTS TO BUILD CONTROLLERS FOR LASER PRINTERS IN ORDER TO DEVOTE MORE RESOURCES TO OTHER BUSINESSES 9306030033 930603 FINANCING BUSINESS USX CORP USX CORP PITTSBURGH SAID IT COMPLETED THE OFFER BY MARATHON OIL CO A UNIT OF USXMARATHON OIL GROUP TO EXCHANGE NEW MONTHLY INTEREST GUARANTEED NOTES DUE 2002 FOR OUTSTANDING 95 GUARANTEED NOTES DUE 1994 THE STEEL PETROLEUM AND NATURAL GAS COMPANY SAID INTEREST ON THE NEW NOTES WILL BE 975 TO MARCH 1 1994 AND 7 AFTER THAT DATE USX SAID THAT WHEN THE OFFER EXPIRED JUNE 1 THE AGGREGATE FACE AMOUNT OF OLD NOTES TENDERED FOR EXCHANGE EXCEEDED THE 50 MILLION MINIMUM ALL NOTES VALIDLY TENDERED WILL BE ACCEPTED WITHOUT PRORATION 9306030032 930603 TECHNOLOGY PRODIGY UNIT OF IBM SEARS TURNS TO CABLE BY MICHAEL W MILLER AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL JOINING THE CROWDED RACE TO DEVELOP INTERACTIVE TELEVISION PRODIGY SERVICES CO IS LAUNCHING AN AMBITIOUS DRIVE TO SELL ITS POPULAR HOMECOMPUTER SERVICE VIA CABLE TELEVISION NEXT WEEK PRODIGY WILL UNVEIL A PLAN TO SIGN UP CABLE COMPANIES TO DELIVER ITS GAMES ELECTRONIC SHOPPING BULLETIN BOARDS AND OTHER CONSUMER SERVICES IT WOULD BE THE FIRST PERSONALCOMPUTER SERVICE TO ATTEMPT THE LEAP TO TV THOUGH ITS RIVALS AMERICA ONLINE INC AND COMPUSERVE INC ARE PONDERING SIMILAR MOVES PRODIGY COULD BECOME A SERIOUS CONTENDER IN THE CHAOTIC INTERACTIVE TV MARKET SINCE IT ALREADY HAS A MILLION CUSTOMERS AND FIVE YEARS' EXPERIENCE OFFERING TWOWAY ELECTRONIC SERVICES BUT IT DOESN'T HAVE ANY DEALS YET WITH CABLE OPERATORS AND FACES COMPETITION FROM VIRTUALLY EVERY BIG COMMUNICATIONS AND MEDIA COMPANY FOR INSTANCE VIACOM INTERNATIONAL INC THE OWNER OF MTV VH1 AND NICKELODEON SAID YESTERDAY THAT IT WOULD TEST INTERACTIVE VERSIONS OF ITS CHANNELS IN A NEW VENTURE WITH AMERICAN TELEPHONE & TELEGRAPH CO PRODIGY OFFICIALS SAID THE KEY TO THEIR PLAN IS A POWERFUL NEW CABLECONVERTER BOX JOINTLY MADE BY GENERAL INSTRUMENT CORP'S JERROLD COMMUNICATIONS INTEL CORP AND MICROSOFT CORP THE BOX DUE TO BE SHIPPED IN EARLY 1994 WOULD HAVE THE POWER OF AN ADVANCED PC AND A VERSION OF MICROSOFT'S FAMILIAR WINDOWS SOFTWARE IN A SKETCHY DEMONSTRATION OF PRODIGY TV AN INTERACTIVE COUCH POTATO CAN CLICK ON A REMOTECONTROL PAD TO SEND NEWS HEADLINES CRAWLING ACROSS THE BOTTOM OF A TV SCREEN A FEW MORE CLICKS WILL BRING UP THE FULL NEWS STORY ON THE SCREEN'S LOWER THIRD PRODIGY ENVISIONS EVEN MORE ELABORATE HIGHTECH PROGRAMS IF IT CAN LURE THE COOPERATION OF CABLE PROGRAMMERS STILL A BIG UNCERTAINTY A VIEWER WATCHING AN INTERVIEW WITH A CORPORATE MOGUL ON CNBC FOR EXAMPLE COULD HIT THE REMOTE CONTROL AND BUY THE COMPANY'S STOCK A BASEBALL FAN WATCHING ESPN COULD PULL UP A BATTER'S STATISTICS AND A TEENAGER WATCHING MTV COULD ORDER CONCERT TICKETS OR CASSETTES A JOINT VENTURE OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO PRODIGY HAS HAD A BUMPY HISTORY IT HAS BECOME THE MOST POPULAR AND BESTKNOWN ONLINE PC SERVICE BUT IN THE PROCESS IT HAS RACKED UP AN ESTIMATED 800 MILLION IN LOSSES AFTER A BIG MANAGEMENT SHAKEUP PRODIGY THIS WEEK BROUGHT IN CABLE VETERAN SCOTT KURNIT TO OVERSEE ITS CONSUMER SERVICES MR KURNIT WHO FORMERLY RAN VIACOM'S PAYPERVIEW DIVISION WILL BE LEADING PRODIGY'S PUSH TO DRUM UP DEALS WITH CABLE COMPANIES PRODIGY AND ITS RIVALS ARE RUSHING TO THE CABLE INDUSTRY BECAUSE IT HAS SUCH A HUGE BUILT IN BASE OF CUSTOMERS AN ESTIMATED 60 OF ALL AMERICAN HOUSEHOLDS MOREOVER THE COAXIAL CABLE IN THE BACK OF A TV SET COULD HANDLE HUNDREDS OF TIMES THE DATA OF A TELEPHONE LINE CABLE COMPANIES HAVE EXPERIMENTED UNSUCCESSFULLY WITH INTERACTIVE TV FOR MORE THAN A DECADE BUT THE COMING GENERATION OF INTELLIGENT CABLE CONVERTER BOXES FROM JERROLD SCIENTIFICATLANTA INC AND OTHERS COULD BE AN IMPORTANT STEP TO OPEN UP THE MARKET INDEED THE NEW BOXES MAY WELL SPAWN DOZENS OF NEW SERVICES COMPETING WITH PRODIGY'S JUST AS MICROSOFT'S DOS OPERATING SYSTEM ON THE IBM PC SPAWNED A NEW SOFTWARE INDUSTRY ONE EXAMPLE ZING SYSTEMS LP A VENTURE WITH SEVERAL CABLEOPERATOR PARTNERS WITH A SERVICE FOR PLAYING ALONG WITH GAME SHOWS AND TV SPORTS PRODIGY WHICH HAS HAD MIXED RESULTS OFFERING SHOPPING VIA PC IS HOPING TO TEAM UP WITH TV SHOPPING CHANNELS SUCH AS QVC NETWORK INC OR HOME SHOPPING NETWORK INC IN THEORY A TV SHOPPER COULD USE THE PRODIGY NETWORK TO ORDER BY CLICKING ON A REMOTECONTROL PAD INSTEAD OF PICKING UP THE PNE ON THE OTHER HAND QVC OR HOME SHOPPING COULD WELL SET UP THEIR OWN REMOTECONTROL SYSTEMS WITHOUT USING PRODIGY AT ALL THERE WILL BE MULTIPLE INTERACTIVE SERVICES THAT'S THE WHOLE POINT BEHIND THE OPEN ARCHITECTURE OF THE BOX SAID LARRY GERBRANDT AN ANALYST WITH PAUL KAGAN ASSOCIATES INC A CABLE RESEARCH FIRM PRODIGY DEFINITELY HAS THE ECONOMIES OF SCALE AND EXPERIENCE FAVORS THEM BUT I DON'T SEE THEM AS THE ONLY PLAYER OUT THERE 9306030031 930603 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AQUARION CO AN OFFERING OF 400000 COMMON SHARES VIA SMITH BARNEY HARRIS UPHAM & CO BUFFETS INC AN OFFERING OF 1250000 SHARES OF COMMON STOCK VIA PIPER JAFFRAY INC UNITED MERIDIAN CORP AN INITIAL OFFERING OF 79 MILLION COMMON SHARES VIA MERRILL LYNCH & CO AND GOLDMAN SACHS & CO 9306030030 930603 AMEX'S BIOTECHNOLOGY INDEX NEW YORK THE AMERICAN STOCK EXCHANGE SAID IT REPLACED IMMUNEX CORP WITH IMMUNE RESPONSE CORP IN ITS INDEX OF 15 LEADING BIOTECHNOLOGY STOCKS KNOWN AS THE BIOTECHNOLOGY INDEX THE DECISION TO REPLACE IMMUNEX WAS BASED ON A MAJORITY OF THE STOCK NOW BEING HELD BY LEDERLE ONCOLOGY CORP A UNIT OF AMERICAN CYANAMID CO AS A RESULT OF A RECENT MERGER BETWEEN IMMUNEX AND LEDERLE THE EXCHANGE SAID IMMUNE RESPONSE CARLSBAD CALIF MAKES PRODUCTS FOR USE IN THE TREATMENT OF HIV INFECTION IMMUNEX IS A SEATTLE IMMUNOLOGICAL RESEARCH AND DEVELOPMENT COMPANY 9306030029 930603 LEISURE & ARTS CRITIQUE HOLOCAUST MEMORIAL THE UNSPEAKABLE REENACTED BY RAYMOND SOKOLOV WASHINGTON I AM KALMAN KERNWEISS BORN IN 1920 IN KUPNO POLAND THE ELDEST OF 10 CHILDREN MY FATHER SUPPORTED US BY SELLING CHICKENS AND PRODUCE IN THE MARKET AT KOLBUSZOWA A FEW MILES AWAY AT 13 I ENROLLED IN THE PRESTIGIOUS RABBINICAL ACADEMY IN LUBLIN BUT I HOPED TO EMIGRATE TO AMERICA AND ASKED FRIENDS TO CALL ME CHARLIE I TAUGHT MYSELF ENOUGH ENGLISH TO WRITE A LETTER TO ELEANOR ROOSEVELT WHO WROTE ME A NICE NOTE IN RESPONSE I CARRIED IT WITH ME FOR GOOD LUCK IT DIDN'T WORK AFTER 1939 I ENDED UP IN A SLAVE LABOR CAMP BUILDING ROADS FOR THE GERMANS EVENTUALLY I ESCAPED AND HID IN THE WOODS OUTSIDE KUPNO ON A FORAGING TRIP INTO MY OLD TOWN SOME FORMER NEIGHBORS POLES PUT A PITCHFORK IN MY CHEST I DIED THE NEXT DAY IN 1944 FORTUNATELY I AM NOT REALLY KALMAN KERNWEISS OUR NAMES WERE LINKED AT RANDOM BY A BIOGRAPHICAL LEAFLET I RECEIVED AS I ENTERED THE NEW US HOLOCAUST MEMORIAL MUSEUM HERE LAST WEEK EACH VISITOR IS OFFERED SUCH A CARD AND IS INVITED TO ASSUME THE IDENTITY OF THE HOLOCAUST VICTIM DESCRIBED IN IT AS HE PASSES THROUGH THE EXHIBITION UNLIKE KERNWEISS I SURVIVED THE WAR SAFELY IN THIS COUNTRY WHERE I WAS BORN IN DETROIT IN 1941 ON MAY 7 1945 I ASKED MY MOTHER WHY PEOPLE WERE SHOUTING IN THE STREETS SHE SAID THEY WERE CELEBRATING THE END OF HITLER A VERY BAD MAN AS TIME PASSED I CAME TO UNDERSTAND MORE FULLY JUST HOW BAD THERE WERE NUMBERS SIX MILLION JEWS EXTERMINATED AND PICTURES OF EMACIATED PEOPLE PILED LIKE OLD BED FRAMES IN PITS SOME OF THEM POSSIBLY OUR RELATIVES WHO HAD NOT LEFT LITHUANIA AND FINALLY THERE WAS A NAME FOR WHAT HAPPENED THE HOLOCAUST AN ODDLY LEARNED WORD BORROWED FROM ANCIENT GREEK RELIGION IT ORIGINALLY MEANT A SACRIFICE WHOLLY CONSUMED BY FIRE A SACRIFICE TO KEEP THE EVIL GODS OF HADES AT BAY IN ENGLISH ACCORDING TO THE OXFORD ENGLISH DICTIONARY HOLOCAUST WAS FIRST APPLIED TO THE NAZI ATROCITIES AGAINST THE JEWS IN 1942 IT HAS SINCE ENTERED NORMAL PARLANCE IN THIS SENSE AND HAS NONE OF ITS ORIGINAL ODOR OF BURNING FLESH FOR MOST PEOPLE WHO USE IT THIS SPRING IT HAS BEEN APPLIED TO A MAGNIFICENTLY FRIGHTENING BUILDING JUST OFF THE MALL IN THE HEART OF MONUMENTAL WASHINGTON MORE THAN 150 MILLION HAS BEEN SPENT TO SAY NEVER AGAIN IN THE OFFICIAL VOICE OF THE AMERICAN PEOPLE IN AN OVERALL ATMOSPHERE OF PIOUS APPROVAL FOR THE MUSEUM JONATHAN ROSEN OF THE JEWISH WEEKLY PAPER THE FORWARD QUESTIONED THE WISDOM OF THIS ENDORSEMENT I HAD MY DOUBTS TOO ABOUT AN INSTITUTION LINKED BY MANDATE AND PROXIMITY WITH THE WASHINGTON MONUMENT AND THE CAPITOL THAT WOULD SHOW MILLIONS OF FUTURE VISITORS OF ALL STRIPES AND CONVICTIONS A PICTURE OF JEWS AS VICTIMS AND SCAPEGOATS WORSE STILL TO MEMORIALIZE THE HOLOCAUST WOULD INEVITABLY MEMORIALIZE THE SUCCESS OF HITLER HE LOST WORLD WAR II BUT HE DID WIN THE WAR AGAINST THE JEWS INSIDE THE HOLOCAUST MEMORIAL ONE THINKS DIFFERENT THOUGHTS THE EXHIBITS SWEEP YOU BACK INTO THE GATHERING HORROR OF THE RISE OF THE NAZIS SURVIVING FILMS AND PHOTOGRAPHS OF PREWAR JEWISH LIFE ALL OVER EUROPE SET THE STAGE FOR THE OPENING OF THE ABYSS THEN COME THE NEWSREELS OF THE NAZI RALLIES AND BEFORE YOU KNOW IT YOU ARE ENGULFED THIS IS A GRISLY MASTERWORK OF HISTORICAL TEACHING FOR OUR TIME WITH ALL MEDIA MARSHALED TO REENACT THE UNSPEAKABLE EVERYTHING IS HERE FROM WRITTEN DOCUMENTS TO CONFISCATED SHOES AND A BOXCAR USED TO CARRY THE UNSUSPECTING DOOMED TO SLAUGHTER YOU CAN WALK THROUGH ITS UNLIT INTERIOR AND YOU CAN LINGER A WHILE BY THE VIDEO MONITORS SHOWING FILMS OF ACTUAL MURDER COMMITTED NOT ONLY BY GERMANS BUT BY THEIR ALL TOO WILLING COLLABORATORS IN POLAND UKRAINE OR FRANCE THE WORST I THOUGHT WAS THE LITHUANIAN NATIONALIST WHO HACKED AT PRISONERS WITH A CROWBAR THEN AFTER THEY WERE REVIVED BY BEING HOSED DOWN HE DID IT AGAIN AND FINALLY STOOD ON THEIR CORPSES AND PLAYED THE LITHUANIAN NATIONAL ANTHEM ON AN ACCORDION I WAS WRONG NO ONE IN HIS RIGHT MIND COULD WITNESS THIS AND A THOUSAND OTHER EXHIBITS IN THIS MUSEUM AND COME AWAY THINKING THE HOLOCAUST MEMORIAL WOULD GIVE THE WRONG IMPRESSION WHETHER IT WAS NECESSARY OR WILL REALLY DO ANYTHING TO FORESTALL FUTURE GENOCIDE OR ANTISEMITISM THESE ARE QUESTIONS IMPOSSIBLE TO ANSWER WITH ANY CONFIDENCE ONE CAN CERTAINLY SAY HOWEVER THAT THE HOLOCAUST MEMORIAL IS AS A TOTAL EXPERIENCE A WORK OF ART EVERY INCH OF IT FUNCTIONS WITH SHATTERING BRILLIANCE TO MAKE THE MUSEUM ITSELF AN ICON THE PRISONLIKE ARCHITECTURE THE AUDIOVISUAL DISPLAYS OF HISTORY AND PERSONAL LIFE THE RELICS THE ACTUAL INSTRUMENTS OF DEATH THE CHAPELTHEY ALL WORK TOGETHER INTELLECTUALLY AND SYMPHONICALLY THERE IS ONE MAJOR EXCEPTION TO THIS SINGLEMINDED MECHANISM IN THE MIDST OF A MUSEUM DEVOTED TO UGLINESS AND EVIL THERE IS A MORE OR LESS CONVENTIONAL GALLERY SPACE GIVEN OVER TO BEAUTY AND HUMANITY ON THE WALLS ARE PHOTOGRAPHS TAKEN IN ONE JEWISH TOWN OF AN ASTONISHINGLY DIVERSE POPULATION RANGING FROM SIDELOCKED KAFTANED CHASIDIM TO YOUNG COUPLES IN MODERN DRESS WHO MIGHT HAVE BEEN SNAPPED COURTING IN CLEVELAND HUNDREDS OF THESE PICTURES WERE GATHERED AND HUNG IN ASCENDING ROWS SOME TOO HIGH TO SEE CLEARLY BUT ALL TOGETHER IMPLYING THE MOST URGENT HUMAN MESSAGE THIS WAS THE CIVILIZATION THAT PERISHED IT IS ONLY HERE THAT THE PLANNERS OF THIS MUSEUM ALLOWED THEMSELVES TO FUNCTION LIKE NORMAL CURATORS HANGING A COLLECTION OF OBJECTS INTENDED AS VISUAL ART IN CONTEXT OF COURSE THE ORIGINAL AESTHETIC OR PERSONAL SIGNIFICANCE OF THESE PICTURES IS OVERWHELMED BY THE KNOWLEDGE OF THEIR SUBJECTS' ULTIMATE FATE IT MAKES YOU YEARN FOR STRAIGHTFORWARD GALLERIES IN WHICH ART CAN HANG ON ITS OWN MERITS AND FOR OPEN PLACES WHERE EVIL DOES NOT HOVER 9306030028 930603 INTERNATIONAL PAKISTAN'S WILD FRONTIER BREEDS TROUBLE DRUGS TERRORISM COULD OVERFLOW INTO OTHER REGIONS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL LANDI KOTAL PAKISTAN BETWEEN SIPPING CHILLED APPLE JUICE AND MUNCHING SUGARED ALMONDS AYUB KHAN AFRIDI FILLS HIS LUNGS WITH THE SCENT FROM HIS FOOTBALLFIELDLENGTH ROSE GARDENS I AM CONTENT WITH WHAT ALLAH HAS GIVEN ME HE SAYS I AM A GOOD MUSLIM A GOOD MAN WHO CAN FIND ANYTHING WRONG WITH MY LIFE YET SOMETHING IS AMISS LANDI KOTAL IS A BARREN KHYBER PASS TOWN WHERE WATER AND VEGETATION ARE SCARCE WARY LOCAL TRIBESMEN TOTE AUTOMATIC RIFLES A FEW MILES UP THE ROAD AFGHAN FIGHTERS CONTINUE TO BATTLE OVER THEIR MOUNTAINOUS WARSHATTERED HOMELAND LAW ENFORCERS IN PAKISTAN AND ABROAD SAY THE DESOLATION AND LAWLESSNESS OF THIS RUGGED CORNER OF THE WORLD ARE PRECISELY THE CONDITIONS THAT ENABLED MR AFRIDI TO BECOME WHAT THEY SAY HE IS A RICH AND POWERFUL DRUG TRAFFICKER ABLE TO SILENCE CRITICS BUY POLITICAL PROTECTION AND IRRIGATE A ROSE GARDEN HALFWAY UP THE DESOLATE KHYBER PASS MR AFRIDI A RUDDYFACED 58YEAROLD TRIBAL LEADER WHO WEARS A WHITE COTTON TUNIC AND A PEAKED LAMBSKIN HAT A GOLD ROLEX WATCH THE ONLY HINT OF WEALTH CALLS SUCH ALLEGATIONS LIES TO THE AUTHORITIES MR AFRIDI EPITOMIZES A DANGEROUS LEGACY OF THE CHRONIC WAR IN NEARBY AFGHANISTAN IN THIS ANCIENT TRIBAL AREA ANYTHING GOES FROM NARCOTICS PRODUCTION TO TERRORISM OPIUMPOPPY FIELDS AND STANDS OF TALL MARIJUANA FLOURISH IN THE FORBIDDING HILLS ALONG WITH ISLAMIC FUNDAMENTALIST GROUPS ASSEMBLED OF LEFTOVER HOLY WARRIORS OR MUJAHEDEEN LOOKING FOR A CAUSE THE TANDEM EMERGENCE OF INTERNATIONAL DRUG SMUGGLERS AND ARMED FUNDAMENTALISTS ALARMS PAKISTAN AND OTHER COUNTRIES THEY FEAR THIS RUGGED REGION IS A FOUNTAIN OF TROUBLE THAT WILL OVERFLOW INTO PAKISTAN AND ABROAD THERE IS A SYMBIOTIC RELATIONSHIP BETWEEN INSURGENCY AND DRUG SMUGGLING SAYS M AKRAM ZAKI SECRETARYGENERAL OF PAKISTAN'S MINISTRY OF FOREIGN AFFAIRS HE FRETS THAT ISLAMIC MILITANTS SOME FIGHTING FOR POWER IN AFGHANISTAN AND SOME HOPING TO CARRY THEIR JIHAD OR HOLY WAR ABROAD IN TERRORIST CAMPAIGNS WILL TURN TO THE DRUG TRAFFICKERS FOR FUNDING WE ARE TRYING TO WIND IT DOWN MR ZAKI SAYS PAKISTAN IS UNDER PRESSURE WASHINGTON BELIEVES THE PLOTTERS OF FEBRUARY'S BOMBING OF THE WORLD TRADE CENTER TRAINED NEAR LANDI KOTAL SOME MUSLIM COUNTRIES FRIENDLY TO PAKISTAN INCLUDING EGYPT AND TUNISIA SAY ISLAMIC NATIONALISTS HAVE PLANNED TERRORIST ATTACKS FROM THIS AREA SO FAR THE GOVERNMENT HAS EXPELLED 1200 AFGHANISTANWARERA FIGHTERS FROM PAKISTAN ACCORDING TO GOVERNMENT OFFICIALS DRUG TRAFFICKING ADDS TO THE PRESSURE MOST OF EUROPE'S HEROIN AND HASHISH IS THOUGHT TO COME FROM THIS AREA EITHER PAKISTAN OR AFGHANISTAN WHICH NOW RIVALS SOUTHEAST ASIA'S GOLDEN TRIANGLE AS THE WORLD'S BIGGEST OPIUM PRODUCER THOUGH THE UNITED NATIONS AND THE US HAVE SPENT TENS OF MILLIONS OF DOLLARS BUILDING ROADS AND DEVELOPING OTHER CASH CROPS AND INDUSTRIES HERE NARCOTICS CONTINUE TO FLOW A SHIP LADEN WITH 10 TONS OF PAKISTANI HASHISH AND TWO TONS OF PAKISTANI HEROIN WAS RECENTLY STOPPED NEAR TURKEY THE BIGGEST OF PAKISTAN'S DRUG LORDS THE AUTHORITIES SAY IS MR AFRIDI MR AFRIDI SAYS HE HAS MADE ALL HIS MONEY BRINGING UNTAXED GOODS INTO PAKISTAN CROCKERY FROM AFGHANISTAN BRIDGESTONE TIRES FROM JAPAN BUT EXPORTING TONS OF HASHISH AND HEROIN PROPAGANDA SPUTTERS MR AFRIDI OVER A LUNCH OF FRIED CHICKEN AND FRENCH FRIES IN HIS SPRAWLING WOODPANELED DINING ROOM IF ANY GOVERNMENT IN THE WORLD HAS REAL PROOF I AM READY TO FACE THAT SO FAR FEW HAVE COME FORTH AUTHORITIES IN PAKISTAN AND THE NETHERLANDS HAVE CITED MR AFRIDI IN INVESTIGATIONS INTO MASSIVE NARCOTICS SEIZURES BUT PAKISTANI OFFICIALS SAY HE WAS CONVICTED ONLY ONCE IN ABSENTIA IN 1985 OF HASHISH SMUGGLING HE WAS FINED ABOUT 2000 THEY SAY THOUGH HE NEVER PAID INTERNATIONAL LAWENFORCEMENT AGENCIES SAY INTIMIDATION AND MR AFRIDI'S POLITICAL CLOUT HE HAS REPRESENTED HIS TRIBESMEN IN PAKISTAN'S PARLIAMENT SINCE 1990 HAVE PROTECTED HIM ON HIS ONE CONVICTION SHEET PAKISTANI OFFICIALS SAY MR AFRIDI IS LISTED AS AN ABSCONDER THOUGH HE HAS SINCE TRAVELED ABROAD WITH PRIME MINISTER NAWAZ SHARIF AND HAS BEEN SHOWN IN FRONTPAGE NEWSPAPER PHOTOGRAPHS WITH PRESIDENT GHULAM ISHAQ KHAN IF I AM GUILTY WHY NOT CATCH ME HE DEMANDS REPLIES AHSAN MUKHTAR ASHRAF THE REGIONAL HEAD OF THE PAKISTAN NARCOTICS CONTROL BOARD IF YOU COULD GET ME SOME PERMISSION FROM THE GOVERNMENT I WOULD BE GLAD TO ARREST MR AFRIDI BECAUSE MR AFRIDI LIVES IN PAKISTAN'S NORTHWEST FRONTIER PROVINCE A PROTECTED TRIBAL AREA ALONG THE BORDER MR ASHRAF CAN'T ACT WITHOUT PERMISSION FROM PRESIDENT ISHAQ KHAN OR HIS REPRESENTATIVES HE SAYS HE HASN'T BEEN ABLE TO GET IT MR AFRIDI HAS NEVER APPEARED IN A COURT ON NARCOTICS CHARGES A CASE BROUGHT AGAINST HIM IN 1985 UNRELATED TO THE CASE IN WHICH HE WAS FINED 2000 IN ABSENTIA FOR INVOLVEMENT IN A 175TON SHIPMENT OF HASHISH TO EUROPE WAS NEVER BROUGHT TO TRIAL THE CASE INVESTIGATOR WAS ASSASSINATED AFTER SEVERAL OTHER SUSPECTS WERE CONVICTED IN 1990 THE NEXT YEAR MR AFRIDI WAS EXONERATED IN AN UNUSUAL STATEMENT BY THE DEAD MAN'S SUCCESSOR WHO SAID THE CASE AGAINST MR AFRIDI WAS FALSE AND POLITICALLY MOTIVATED MR AFRIDI SAYS NOT ONLY IS HE INNOCENT BUT SOME OF THE PEOPLE WHO WORK FOR HIM HAVE SHUT DOWN 50 OR 60 HEROIN LABORATORIES IN THIS REGION I CATCH THEM MYSELF HE SAYS IF MR AFRIDI ISN'T A DRUG BARON HE CERTAINLY LIVES LIKE A FEUDAL BARON THE 20ACRE COMPOUND HE BUILT FOR HIMSELF IS A FORTRESS LITERALLY SURROUNDED BY BARBED WIRE AND REINFORCED CONCRETE WALLS IT IS PROTECTED BY BATTLEMENTS AND STEELPLATED TURRETS WITH GUN SLITS AS MANY AS 500 PEOPLE LIVE IN THE COMPOUND AN OASIS OF GARDENS LAWNS AND MARBLE FLOORS WHEN FORMER PAKISTANI PRIME MINISTER BENAZIR BHUTTO IN 1989 CONSIDERED SENDING TROOPS TO ARREST MR AFRIDI A PROVINCIAL OFFICIAL IN NEARBY PESHAWAR SAYS MR AFRIDI RETREATED TO AFGHANISTAN AND LEFT AS MANY AS 1000 ARMED DEFENDERS IN HIS FORTRESS SUCH DEFENSES SUGGEST THE ENTRENCHED MAGNITUDE OF THE PROBLEM PAKISTAN'S GOVERNMENT FACES IT'S BECOME A SERIOUS DOMESTIC PROBLEM WITH ALL KINDS OF IMPLICATIONS FOR PAKISTAN'S SECURITY SAYS A US OFFICIAL IN ISLAMABAD AND IT'S A PROBLEM PAKISTAN'S AUTHORITIES STILL SEEM EITHER UNWILLING OR UNABLE TO COPE WITH 9306030027 930603 FOREIGN EXCHANGE DOLLAR'S REBOUND IS SEEN IN EUROPE BUT NOT JAPAN BY MICHAEL R SESIT STAFF REPORTER OF THE WALL STREET JOURNAL LONDON LOOK FOR THE DOLLAR TO KEEP FALLING AGAINST THE YEN BUT EVENTUALLY BOUNCE BACK AGAINST THE MARK AND OTHER EUROPEAN CURRENCIES THAT'S AS CLOSE TO A CONSENSUS AS THERE IS IN THE VOLATILE CURRENCY EXCHANGE MARKET WHERE 1 TRILLION A DAY CHANGES HANDS ONE WHO HOLDS THIS OPINION IS KERMIT L SCHOENHOLTZ AN INTERNATIONAL ECONOMIST AT SALOMON BROTHERS INTERNATIONAL LONDON THE YEN STILL HAS UPSIDE POTENTIAL HE SAYS THE JAPANESE ECONOMY SHOULD GRADUALLY RECOVER IN THE SECOND HALF OF 1993 ALSO HE NOTES JAPAN IS STILL RUNNING NEARRECORD SURPLUSES IN INTERNATIONAL TRADE OF GOODS AND SERVICES SO HE FORESEES THE YEN TRADING IN A RANGE OF 100 TO 115 YEN TO THE DOLLAR OVER THE NEXT YEAR BUT HE SAYS THE JAPANESE CURRENCY WILL CONTINUE TO TEST THE UPSIDE OF THAT RANGE FOR THE NEAR FUTURE MEANING THE LEVEL OF 100 YEN TO THE DOLLAR BY CONTRAST HE SAYS THAT OVER TIME MARKETS WILL FOCUS MORE CLOSELY ON THE STRUCTURAL PROBLEMS GERMANY FACES AND THAT WILL TEND TO WEAKEN THE DEUTSCHE MARK THESE PROBLEMS INCLUDE PERSISTENTLY HIGH FISCAL DEFICITS EFFORTS TO COMBAT THOSE DEFICITS BY A COUNTRY THAT ALREADY HAS RELATIVELY HIGH TAXES AND A LARGE PRODUCTIVITY GAP BETWEEN EAST AND WEST GERMANY LEAVING EAST GERMAN UNIT LABOR COSTS FAR ABOVE WEST GERMAN COSTS HE PREDICTS THE DOLLAR WILL RISE TOWARD 180 MARKS OR ABOUT 13 HIGHER DURING THE NEXT 12 MONTHS IN LATE NEW YORK TRADING THE DOLLAR WAS AT 15978 MARKS AND 10720 YEN COMPARED WITH 15865 MARKS AND 10705 YEN ON TUESDAY THE POUND FELL TO 15410 FROM 15520 A DAY EARLIER IN TOKYO EARLY THURSDAY THE DOLLAR WAS TRADING AT 10725 YEN AND AT 15990 MARKS TRADERS ATTRIBUTED THE DOLLAR'S RISE TO A COMMERCE DEPARTMENT REPORT THAT NEW HOME SALES IN THE US ROSE A BETTERTHANEXPECTED 227 IN APRIL NONETHELESS THEY SAY ANY DOLLAR ADVANCE IS LIMITED AS INVESTORS AND TRADERS AWAIT TOMORROW'S RELEASE OF US NONFARM PAYROLL DATA STERLING HAS ITS OWN DIFFICULTIES SOME INVESTORS BELIEVE KENNETH CLARKE BRITAIN'S NEW CHANCELLOR OF THE EXCHEQUER WILL MOVE QUICKLY TO LOWER INTEREST RATES TO BOOST THE SAGGING FORTUNES OF THE RULING CONSERVATIVE PARTY THE INITIAL RECEPTION FOR LAST WEEK'S CABINET RESHUFFLE IN WHICH MR CLARKE BECAME CHANCELLOR ISN'T VERY CONVINCING SAYS ROBIN MARSHALL CHIEF ECONOMIST AT CHASE MANHATTAN BANK IN LONDON POLITICS ARE HAUNTING STERLING AT THE MOMENT THIS YEAR THE DOLLAR HAS FALLEN 14 AGAINST THE YEN REPEATEDLY TUMBLING TO POSTWORLD WAR II LOWS THE DOLLAR IS DOWN NEARLY 2 AGAINST THE MARK THESE LEVELS ARE VERY DIFFERENT FROM FORECASTS BY CURRENCY GURUS LATE LAST YEAR WHO PREDICTED THE DOLLAR WOULD BY NOW BE ABOUT 11 HIGHER AGAINST THE MARK AND HOLDING ITS OWN AGAINST THE YEN THE ARGUMENT BEHIND THE RESURGENT DOLLAR WAS SIMPLE THE US ECONOMY WOULD RECOVER AND US INTEREST RATES WOULD RISE WHILE THE GERMAN ECONOMY WOULD FALL ALONG WITH GERMAN INTEREST RATES WHILE JAPAN'S HUGE TRADE SURPLUS WAS EXPECTED TO BUOY THE YEN ITS STAGNANT ECONOMY WOULD TEMPER ANY DRASTIC RISE WHAT'S MORE THE NEW CLINTON ADMINISTRATION WAS BEING TOUTED AS A BASTION OF STABILITY IN A WORLD POPULATED BY WEAK POLITICAL LEADERS BUT THE SCRIPT HASN'T PLAYED OUT AS EXPECTED COMPARED TO THE BEGINNING OF THE YEAR THE US ECONOMY HAS TEMPORARILY WEAKENED MORE THAN HAD BEEN EXPECTED SAYS MR SCHOENHOLTZ AND THERE HAVE BEEN LONGERTHANEXPECTED DELAYS IN GERMAN MONETARY EASING BECAUSE OF STUBBORN INFLATION ERRATIC MONEY GROWTH AND RECORD PUBLICSECTOR BORROWING THE DOLLAR'S WEAKNESS AGAINST THE YEN IS REALLY A FUNCTION OF MOMENTUM WITH NEW LOWS BEING SET ALMOST EVERY DAY SAYS RICHARD WITTEN PARTNER IN CHARGE OF CURRENCY SALES AT GOLDMAN SACHS & CO IN NEW YORK HE ADDS IT'S A FUNCTION OF EUROPEAN AND US TRADE POLICIES TO STRENGTHEN THE YEN WHAT'S MORE THE EUPHORIA THAT INITIALLY GREETED THE CLINTON PRESIDENCY HAS FADED RATHER THAN BEING PERCEIVED AS THE WORLD'S BEACON THE NEW ADMINISTRATION IS VIEWED BY MANY AS POLITICALLY INEPT AND LACKING CLEARLY UNDERSTOOD POLICIES TONY BARON A CURRENCY AND FIXEDINCOME STRATEGIST AT PAINEWEBBER INTERNATIONAL UK LTD IN LONDON SAYS THAT ALTHOUGH OFFICIALLY DENIED THERE IS A WIDESPREAD MARKET BELIEF THAT THE US ADMINISTRATION IS SEEKING A WEAKER DOLLAR AGAINST THE YEN IN ORDER CUT THE US TRADE DEFICIT WITH JAPAN IN ADDITION MR MARSHALL OF CHASE MANHATTAN SAYS THAT WHILE THE BANK OF JAPAN HAS SPENT ABOUT 10 BILLION DURING THE PAST FEW MONTHS INTERVENING TO PROP UP THE DOLLAR THE FED'S INTERVENTIONS HAVE BEEN HALFHEARTED IF TRUE THE POLICY DISTURBS SOME ANALYSTS I DON'T THINK THE US ADMINISTRATION WANTS TO RISK DESTABILIZING US FINANCIAL MARKETS SAYS MR MARSHALL BUT THERE'S A DANGER THAT IF THEY DON'T DO ANYTHING TO ARREST THE DOLLAR'S WEAKNESS THE DOLLAR COULD GO INTO A FREEFALL AND IT WILL BECOME A ONEWAY BET IF CURRENCY TRADERS THINK THERE'S A ONEWAY BET YOU COULD SEE THE DOLLAR FALL TO 100 YEN SHORTLY HE PREDICTS HE ADDS THAT IF THE DOLLAR FELL PRECIPITOUSLY THERE'S A RISK THAT BOND YIELDS WOULD RISE SENDING THE ECONOMY BACK INTO RECESSION AND THAT WOULD HIT THE EQUITY MARKET EVEN IF THE SPEED OF THE DOLLAR'S FALL IS SLOWED MANY ANALYSTS PROJECT CONTINUED WEAKNESS AGAINST THE YEN IN SIX MONTHS ECONOMISTS AT GOLDMAN SACHS IN LONDON SEE THE DOLLAR TRADING AT 106 YEN AND 103 YEN IN A YEAR THEY NOTE THAT JAPAN'S HUGE TRADE SURPLUS ESTIMATED AT 140 BILLION IN 1993 AND 125 BILLION IN 1994 WON'T BE REDUCED QUICKLY THEY ALSO SAY THAT THE YEN COULD BENEFIT FROM A STRONGER JAPANESE ECONOMY FOLLOWING THE RECENT ADOPTION OF A LARGE GOVERNMENTSPENDING PROGRAM MEANWHILE MANY ECONOMISTS ARE STICKING TO THEIR BELIEF THAT THE DOLLAR WILL RISE AGAINST THE MARK A GROWING AWARENESS OF GERMAN STRUCTURAL DIFFICULTIES WILL BE A KEY FACTOR SAYS MR SCHOENHOLTZ OF SALOMON BROTHERS IN ADDITION 1994 POSES DIFFICULT POLITICAL CHALLENGES IN GERMANY WHEN 19 KEY ELECTIONS WILL TAKE PLACE AMIDST AN ECONOMY THAT MAY STILL BE IN RECESSION DESPITE THE GERMAN CENTRAL BANK'S PERSISTENT EFFORTS TO MAINTAIN RELATIVELY HIGH INTEREST RATES TO BATTLE DOMESTIC INFLATIONARY PRESSURE INEVITABLY THE BUNDESBANK WILL CUT RATES TO DEAL WITH GERMANY'S DEEPENING ECONOMIC CRISIS PREDICTS MR BARON HE SEES THE DOLLAR TRADING AT 175 MARKS IN SIX MONTHS THE REALITY IS THAT THE GERMAN ECONOMY IS GOING DOWN THE CAN HE SAYS YOU WILL SEE A FALL OF 2 IN GROSS NATIONAL PRODUCT IN 1993 AND THE BUDGET DEFICIT IS GOING INTO THE STRATOSPHERE MR BARON PREDICTS THE GERMAN FEDERAL BUDGET DEFICIT WHICH WAS 39 BILLION MARKS LAST YEAR WILL GROW TO BETWEEN 70 BILLION MARKS AND 80 BILLION MARKS IN 1993 AND THAT LOCAL GOVERNMENTS WILL RUN UP DEFICITS OF AT LEAST ANOTHER 35 BILLION MARKS TO 40 BILLION MARKS THIS YEAR THEN THE FINAL KICKER ON THE PUBLICSECTOR SIDE IS THAT A LOT OF THE BORROWING AFTER THE BERLIN WALL CAME DOWN IN NOVEMBER 1989 TO FINANCE THE RECONSTRUCTION OF EAST GERMANY WAS SHORTTERM SAYS MR BARON NOW ALL THOSE FUNDS HAVE TO BE REFINANCED HE ESTIMATES THAT BETWEEN THIS YEAR AND THE NEXT REDEMPTIONS OF PUBLICLY ISSUED BONDS WILL DOUBLE TO ABOUT 100 BILLION MARKS THE GERMANS HAVE TO IMPORT CAPITAL TO FINANCE THEIR DEFICIT HE SAYS THE ONLY WAY TO DO THAT IS FOR GERMAN BOND YIELDS TO RISE RELATIVE TO OTHER BOND YIELDS OR FOR THE DEUTSCHE MARK TO FALL OR A COMBINATION OF THE TWO THEY HAVE TO BRING THE PRICE OF THE ASSET DOWN TO MAKE IT ATTRACTIVE 9306030026 930603 ALLSTATE STOCK SALE RAISES 212 BILLION LARGEST INITIAL OFFERING FOR A US FIRM BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL ALLSTATE CORP WENT PUBLIC YESTERDAY RAISING 212 BILLION IN THE LARGEST INITIAL PUBLIC STOCK OFFERING EVER BY A US COMPANY THE PROPERTY AND CASUALTY INSURER SOLD 785 MILLION SHARES AT 27 APIECE WHICH WAS IN LINE WITH EXPECTATIONS THE STOCK IS EXPECTED TO BEGIN TRADING THIS MORNING ON THE NEW YORK STOCK EXCHANGE UNDER THE SYMBOL ALL SEARS ROEBUCK & CO WHICH OWNED 100 OF ALLSTATE PRIOR TO THE STOCK SALE WILL CONTINUE TO OWN 821 AT A MARKET CAPITALIZATION OF ABOUT 12 BILLION ALLSTATE WILL BE THE SECOND LARGEST INVESTOROWNED INSURANCE COMPANY IN THE COUNTRY AFTER AMERICAN INTERNATIONAL GROUP INC THE OFFERING COULD GET EVEN BIGGER IF THE UNDERWRITERS CHOOSE TO EXERCISE THEIR OPTION TO BUY AN ADDITIONAL 11 MILLION SHARES THE LEAD UNDERWRITER GOLDMAN SACHS & CO DECLINED TO COMMENT ON ITS PLANS MOST OF THE OFFERING PROCEEDS WILL BE USED TO REDUCE DEBT OF SEARS THE REMAINING 300 MILLION WILL BE USED TO INCREASE THE CAPITAL OF ALLSTATE'S INSURANCE UNIT WHICH PAID OUT 25 BILLION LAST YEAR ON HURRICANE ANDREW ADDITIONAL CAPITAL WILL COME FROM TWO DEBT OFFERINGS ONE FOR 600 MILLION AND ANOTHER FOR 300 MILLION FOR SEARS THE SALE OF THE ALLSTATE STAKE NOT ONLY STRENGTHENS ITS FINANCIAL POSITION BUT ALSO BRINGS IT CLOSER TO ITS GOAL ON BEING ABLE TO CONCENTRATE FULLY ON RETAILING IN ADDITION TO SELLING STOCK IN ALLSTATE IT RECENTLY TOOK PUBLIC DEAN WITTER DISCOVER & CO ITS CHARGE CARD AND STOCK BROKERAGE UNIT ANALYSTS EXPECT SEARS TO SELL ITS REMAINING SHARES IN ALLSTATE OVER TIME ALLSTATE BASED IN NORTHBROOK ILL WENT PUBLIC AT A TIME OF STRONG INVESTOR INTEREST IN STOCKS OF PROPERTY AND CASUALTY INSURANCE COMPANIES SEVERAL OTHER INSURERS RECENTLY HAVE SOLD STOCK TO TAKE ADVANTAGE OF BUYER ENTHUSIASM INVESTORS BELIEVE INSURANCE PROFITS ARE HEADING HIGHER BECAUSE OF AN ANTICIPATED UPTURN IN INSURANCE RATES INSURERS WANT TO RAISE PRICES TO MAKE UP FOR LOSSES ON LAST YEAR'S HURRICANE ANDREW WHICH COST THE INDUSTRY NEARLY 17 BILLION ALLSTATE ALSO BENEFITED FROM STRONG NAME RECOGNITION AND THE BELIEF THAT SEARS WAS SELLING THE STOCK AT A DISCOUNT TO MAKE SURE THE OFFERING SUCCEEDED THE VALUATION IS ATTRACTIVE SAID ANALYST MARK BASHAM OF STANDARD & POOR'S CORP WHICH RECOMMENDED THAT INVESTORS BUY THE STOCK ALLSTATE IS THE SECOND LARGEST INSURER OF CARS AND HOMES IN THE COUNTRY BEHIND BLOOMINGTON ILLBASED STATE FARM MUTUAL AUTOMOBILE INSURANCE CO ALLSTATE'S OFFERING COINCIDED WITH THE FIRST WEEK OF THE HURRICANE SEASON IN RECENT WEEKS THE COMPANY HAS COME UNDER ATTACK IN CONGRESS AND IN FLORIDA FOR ITS DECISION TO CANCEL A QUARTER OF ITS HOMEOWNERS POLICIES IN FLORIDA AND SHARPLY RAISE RATES ALLSTATE WANTS TO REDUCE ITS EXPOSURE TO FLORIDA STORMS BUT BECAUSE OF REGULATORY AND LEGISLATIVE ROADBLOCKS WILL PROBABLY HAVE TO WAIT UNTIL AFTER HURRICANE SEASON ENDS IN NOVEMBER BEFORE IT CAN IMPLEMENT ITS PLAN NOT EVERY INVESTOR IS BULLISH ON ALLSTATE PAUL LLOYD OF CORESTATES INVESTMENT ADVISORS SAID ALLSTATE SPECIALIZES IN BUSINESSES HOMEOWNERS AND AUTO INSURANCE WITH LITTLE GROWTH POTENTIAL WE TEND TO BE GROWTH PLAYERS AND I DON'T SEE A LOT OF GROWTH THERE HE SAID DOUGLAS PRATT A FUND MANAGER WITH DENVERBASED INVESCO FUNDS GROUP SAID IT BOTHERED HIM THAT ALLSTATE DIDN'T HAVE MORE REINSURANCE TO CUSHION THE LOSS ON HURRICANE ANDREW I REALLY QUESTION WHY THEY DID THAT HE SAID THEY ARE MAKING SOME ASSUMPTIONS ABOUT OPERATING EFFICIENCIES THAT I WOULD VIEW MORE CREDIBLY IF IT WAS A NEW MANAGEMENT TEAM HE ADDED THE PREVIOUS LARGEST PUBLIC OFFERING OF A US COMPANY CAME IN 1987 WHEN THE GOVERNMENT SOLD ITS INTEREST IN CONSOLIDATED RAIL CORP THE CONRAIL OFFERING RAISED 145 BILLION 9306030025 930603 WORLD MARKETS TOKYO PRICES RISE IN BET YEN HAS TOPPED OUT LONDON SHARES BOOSTED BY PROPERTYSECTOR NEWS A WALL STREET JOURNAL NEWS ROUNDUP TOKYO EQUITIES ROSE WEDNESDAY AS BIG EXPORTERS' SHARES REBOUNDED STRONGLY DESPITE THE JAPANESE YEN'S CONTINUED STRENGTH LONDON STOCKS ENDED HIGHER ON BOOSTS FROM THE PROPERTY SECTOR AND US AND BRITISH ECONOMIC DATA WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10820 UP 005 REFLECTING INCREASES IN ASIA/PACIFIC MARKETS AND A DROP IN THE AMERICAS AND EUROPE COMPUTERS WITH IBM STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 9246 UP 189 OR 21 WITH AMSTRAD OF BRITAIN POSTING A 76 GAIN IN ITS LOCAL CURRENCY BIOTECHNOLOGY STOCKS TRAILED AT 5996 DOWN 118 OR 19 WITH AMGEN OF THE US SLIDING 31 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH ADDED 3906 POINTS TUESDAY GAINED 10029 TO 2069170 ON THURSDAY THE NIKKEI ROSE 36723 POINTS TO CLOSE THE MORNING SESSION AT 2105893 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH EDGED UP 065 POINT TUESDAY ROSE 821 TO 164546 MANY INVESTORS WERE BETTING THE YEN'S SURGE WILL PEAK AROUND CURRENT LEVELS MAKING ATTRACTIVE BUYS OF STOCKS SUCH AS ELECTRICAL ISSUES THAT WERE SOLD OFF SHARPLY WITH THE YEN'S SURGE WHICH CUTS INTO THE VALUE OF EXPORTERS' OVERSEAS EARNINGS THE YEN KEPT TO A NARROW RANGE AGAINST THE US DOLLAR WEDNESDAY NEAR HISTORICALLY HIGH LEVELS BUT EXPORTERS ATTRACTED CONSISTENT BUYING ALSO ATTRIBUTED PARTLY TO A NEWS REPORT THAT THE US GOVERNMENT HAD DECIDED TO PROVIDE HELP FOR FOREIGN COMPANIES IN THE US ALSO SELLING OF FUTURES CONTRACTS WHICH HAS CAPPED STOCK PRICES IN THE PAST FEW SESSIONS EASED AMID CONTINUED SPECULATION THE BANK OF JAPAN MAY HAVE TO CUT INTEREST RATES AGAIN TO CURB THE YEN'S APPRECIATION IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 138 POINTS TO 28630 WITH 75 ISSUES RISING AND 19 FALLING THE FT 30STOCK INDEX ADVANCED 185 POINTS TO 22302 POINTS VOLUME WAS 6019 MILLION SHARES UP FROM 4019 MILLION SHARES A DAY EARLIER PROPERTY AND RELATED STOCKS RALLIED AS INVESTORS TRIED TO LATCH ONTO THE COATTAILS OF THE MULTINATIONAL INVESTOR GEORGE SOROS ON NEWS THAT HE WAS COOPERATING WITH BRITISH LAND TO SET UP A 500 MILLION 7743 MILLION WAR CHEST FOR INVESTMENT IN THE SECTOR BRITISH INVESTORS HOPED FOR A REPEAT OF THE QUICK PROFITS MR SOROS MADE IN LAST YEAR'S EUROPEAN CURRENCY CRISIS AND MORE RECENTLY IN THE GOLD MARKET THE LONDON BOURSE ALSO WAS BUOYED BY ENTHUSIASM ABOUT DATA ON THE BRITISH MONEY SUPPLY AND HIGHER US HOME SALES IN FRANKFURT STOCK PRICES FINISHED MIXED AMID A LACK OF MARKETMOVING NEWS THE DAX 30STOCK INDEX MANAGED A SLIGHT TECHNICAL REBOUND AND ROSE 532 POINTS TO 162521 INVESTORS INCREASINGLY BELIEVED THAT GERMAN INTEREST RATES WON'T BE LOWERED THIS WEEK FOLLOWING REMARKS BY THE CENTRAL BANK PRESIDENT HELMUT SCHLESINGER WHO WARNED THAT GERMAN INFLATION RISKS CONTINUE BECAUSE OF THIS EXCESSIVE EXPANSION OF MONEY SUPPLY ALSO STRONGERTHANEXPECTED GERMAN PRODUCTION DATA FOR APRIL WERE VIEWED AS RELIEVING SOME OF THE ECONOMIC URGENCY FOR A NEARTERM MONETARY EASING IN PARIS PRICES WERE MIXED TO FIRMER SENTIMENT WASN'T MUCH AFFECTED BY DATA ON A FRENCH TRADE SURPLUS IN FEBRUARY BUT WAS MARKED BY SOME ANXIETY THAT THE TREND LOWER FOR FRENCH INTEREST RATES MAY BE TEMPORARILY ON HOLD MILAN SHARES WHICH HAD BEEN LOSING GROUND ALL DAY FELL FURTHER FOLLOWING THE DISCOVERY OF EXPLOSIVES IN A CAR NEAR THE ITALIAN PREMIER'S OFFICE IN ROME FANNING FEARS SPARKED BY TWO RECENT CARBOMB EXPLOSIONS IN FLORENCE AND ROME STOCKHOLM EQUITIES FELL BROADLY AGAIN AS PROFITTAKING CONTINUED TO DEPRESS PRICES AFTER RECENT WEEKS' GAINS IN SYDNEY SHARE PRICES FIRMED ON WALL STREET'S DAYEARLIER RISE AND A STRONGER AUSTRALIAN DOLLAR LED BY INDUSTRIAL AND FINANCIAL ISSUES THOUGH A DROP IN THE PRICE OF GOLD DRAGGED DOWN GOLD AND MINING STOCKS IN HONG KONG A LATE BOUT OF SELLING PUSHED SHARES SOLIDLY LOWER WITH PROPERTY STOCKS HURT THE WORST AFTER THE SHARP DEVALUATION OF THE CHINESE YUAN RAISED CONCERNS ABOUT EFFECTS ON CHINESE INVESTMENTS BY HONG KONGLISTED COMPANIES IN SINGAPORE PRICES SOFTENED ACROSS THE BOARD BUT BANKING STOCKS BUCKED THE TREND MANILA EQUITIES FELL ON SOME SELECTIVE PROFITTAKING AFTER A BETTERTHANEXPECTED REPORT OF A 017 DROP IN THE PHILIPPINES' GROSS DOMESTIC PRODUCT FOR THE FIRST QUARTER SEOUL STOCKS CLIMBED AMID BULLISHNESS ABOUT PHARMACEUTICAL COMPANIES ON RUMORS THAT THEY WILL INCREASE CAPITAL BY SELLING REAL ESTATE AND THAT THEY WILL GET SOUTH KOREAN GOVERNMENT FINANCIAL SUPPORT TO DEVELOP NEW MEDICINES MEANWHILE CHINA LAUNCHED ITS FIRST NATIONAL STOCK INDEX BASED ON THE COUNTRY'S ONLY TWO EXCHANGES IN SHANGHAI AND SHENZHEN THE CHINA INDEX INCLUDING CLASS A SHARES FOR DOMESTIC INVESTORS AND CLASS B SHARES FOR FOREIGN INVESTORS IS CALCULATED ON THE BASIS OF THE MARKET VALUE OF ALL 112 ISSUES NOW LISTED ON BOTH BOURSES THE BASE DATE IS APRIL 1 ON TUESDAY THE CHINA INDEX CLOSED AT 10914 POINTS THE CLASS A INDEX AT 10919 AND CLASS B INDEX AT 10433 AMONG CORPORATE DEVELOPMENTS IN LONDON BRITISH TELECOMMUNICATIONS FELL 5 PENCE OR 12 TO 421 1/2 PENCE 653 IN A STRATEGIC GLOBAL ALLIANCE BETWEEN TWO BIG GLOBAL TELECOMMUNICATIONS COMPANIES BT ACQUIRED A 20 STAKE IN MCI COMMUNICATIONS OF THE US FOR 43 BILLION AND THEY UNVEILED A 1 BILLION JOINT VENTURE HELD 75 BY BT AND 25 BY MCI WHICH WILL ACQUIRE MOST OF BT'S BUSINESS IN NORTH AMERICA THAMES WATER SLIPPED 2 TO 504 THE UTILITY'S PRETAX PROFIT FOR THE YEAR ENDED MARCH 31 ROSE 63 TO 2513 MILLION 38914 FROM A YEAR EARLIER AS IT CUT OPERATING COSTS AND INCREASED SALES THE DIVIDEND WAS RAISED 94 TO 21 PENCE A SHARE SIEBE SOARED 17 OR 37 TO 477 THE BIG ENGINEERING COMPANY'S PRETAX PROFIT FOR THE YEAR ENDED APRIL 3 ROSE 91 TO 1851 MILLION ON GAINS IN MARKET SHARE THE RESULTS WERE AT THE HIGH END OF MARKET EXPECTATIONS THE FINAL DIVIDEND OF 66725 PENCE A SHARE AFTER A 1FOR1 STOCK SPLIT LAST AUG 31 BRINGS THE TOTAL ANNUAL PAYOUT TO 10 PENCE A SHARE UP 10 AND IN LINE WITH EXPECTATIONS IN FRANKFURT METALLGESELLSCHAFT JUMPED 1050 MARKS OR 36 TO 30250 MARKS 19018 AS ITS EARNINGS WEREN'T AS BAD AS HAD BEEN EXPECTED THE DIVERSIFIED TRADING METALS AND ENGINEERING CONCERN'S PRETAX PROFIT FOR THE FIRST HALF ENDED MARCH 31 PLUNGED 39 TO 983 MILLION MARKS 618 MILLION BECAUSE OF WEAK WORLD METAL PRICES THE SOFT DOLLAR AGAINST THE GERMAN MARK AND GERMANY'S RECESSIONPLAGUED AUTO INDUSTRY 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 9306030024 930603 BUSINESS BRIEF MAGNETEK INC COMPANY LOWERS PROJECTIONS FOR FISCAL 4THQUARTER PROFIT MAGNETEK INC SAID IT EXPECTS NET INCOME OF ABOUT 15 TO 20 CENTS A SHARE FOR THE FISCAL FOURTH QUARTER ENDING JUNE 30 ABOUT HALF WHAT MOST ANALYSTS PROJECT AND SLIGHTLY BELOW THE 52 MILLION OR 21 CENTS A SHARE EARNED IN THE YEAREARLIER PERIOD THE LOS ANGELESBASED COMPANY SAID EARNINGS WILL FALL SHORT OF EXPECTATIONS PRIMARILY BECAUSE OF COSTS ASSOCIATED WITH THE RAPID EXPANSION OF ITS ELECTRONIC LIGHTING BALLAST BUSINESS A MAGNETEK SPOKESMAN SAID THE COMPANY'S NEW FORECAST IS WHAT OUR MOST INFORMED LOOK IS NOW MAKING CERTAIN REALISTIC ASSUMPTIONS ABOUT JUNE IN THE YEAREARLIER FOURTH QUARTER THE MAKER OF ELECTRICAL EQUIPMENT TOOK AN ACCOUNTING CHARGE OF 43 MILLION OR 17 CENTS A SHARE SALES WERE 3429 MILLION 9306030023 930603 WHAT'S NEWS BUSINESS AND FINANCE BRITISH TELECOM AGREED TO PAY 43 BILLION FOR A 20 STAKE IN MCI AS PART OF A GLOBAL COMMUNICATIONS ALLIANCE THE MOVE WHICH IS A BLOW TO AT&T SETS OFF A BATTLE AMONG PHONE GIANTS THAT IS EXPECTED TO SPUR COMPETITION HASTEN MODERNIZATION CUT PRICES AND EXPAND GLOBAL SERVICES THE PACT COULD FORCE GOVERNMENTS TO OPEN MARKETS TO FOREIGN INVESTMENT AND ALLOW ALLIANCES WITH NATIONAL CARRIERS TAMBRANDS' CHAIRMAN AND CHIEF EXECUTIVE WAS ABRUPTLY OUSTED BY THE BOARD AS THE MAKER OF TAMPAX TAMPONS CUT ITS EARNINGS FORECASTS FOR THE SECOND QUARTER AND YEAR ITS STOCK DROPPED 2375 OR 52 TO 42875 ALLSTATE RAISED 212 BILLION IN THE LARGEST INITIAL PUBLIC STOCK OFFERING EVER BY A US COMPANY THE PROPERTY AND CASUALTY INSURER WHICH WILL STILL BE 821 OWNED BY SEARS ROEBUCK SOLD 785 MILLION SHARES AT 27 EACH TRADE MINISTERS FROM EUROPE JAPAN CANADA AND THE US MADE PROGRESS TOWARD ENDING A GATT STALEMATE EUROPEAN OFFICIALS SAID THEY WERE PARTICULARLY ENCOURAGED BY SIGNS JAPAN IS READY FOR MORE CONCESSIONS THE INDEX OF LEADING INDICATORS ROSE JUST 01 IN APRIL SUGGESTING THAT ECONOMIC GROWTH IS LIKELY TO CONTINUE AT ITS SLUGGISH PACE IT FELL 1 IN MARCH SEPARATELY THOUGH SALES OF NEW HOUSES SOARED 227 IN APRIL P&G AND SYNTEX FAILED TO GET AN FDA PANEL'S RECOMMENDATION FOR APPROVAL TO MARKET AN OVERTHECOUNTER VERSION OF PAIN RELIEVER NAPROSYN CS FIRST BOSTON GROUP IS QUIETLY ABANDONING ITS FIVEYEAR EFFORT TO CREATE A GLOBAL TRIUMVIRATE OF INVESTMENT BANKING UNITS AND INSTEAD PLANS TO CONSOLIDATE THE UNITS WHICH WILL PROBABLY OPERATE UNDER A SINGLE NAME PRODIGY SERVICES PLANS TO SELL ITS HOMECOMPUTER SERVICE VIA CABLE TV JOINING THE CROWDED RACE TO DEVELOP INTERACTIVE TV IT WOULD BE THE FIRST PCSERVICE TO ATTEMPT THE LEAP TO TV THOUGH RIVALS AMERICA ONLINE AND COMPUSERVE ARE MULLING SUCH MOVES THE SEC BEGAN PROBING HOW STATE AND LOCAL GOVERNMENTS AWARD MUNICIPAL BOND OFFERINGS TO UNDERWRITERS AND HAS ALREADY CONTACTED WALL STREET FIRMS PEOPLE CLOSE TO THE INQUIRY SAY TRAVELERS PLANS TO CUT ITS EXPOSURE TO FLORIDA HURRICANES BY TERMINATING TIES WITH SOME INDEPENDENT AGENTS STATE OFFICIALS WHO ESTABLISHED A MORATORIUM AGAINST CANCELING HOMEOWNER POLICIES SAY THE PLAN IS ILLEGAL SEAGRAM WON'T RUSH TO RAISE ITS TIME WARNER STAKE BUT DOES EXPECT TO HAVE SOME INPUT IN MANAGEMENT THE CANADIAN FIRM'S CHAIRMAN SAID GEORGE SOROS JOINED WITH A BRITISH REAL ESTATE OWNER AND DEVELOPER TO INVEST UP TO 7743 MILLION IN PROPERTY JAPAN'S BAN ON AMERICAN APPLES IS DRAWING COMPLAINTS FROM US OFFICIALS WHO SEE APPLES AS A SYMBOL OF JAPAN'S UNFAIR TRADING PRACTICES SEN SLADE GORTON PLANS A NEWS CONFERENCE IN TOKYO THURSDAY TO DEMAND THAT JAPAN OPEN ITS MARKET TO US APPLES TOKYO STOCK PRICES ROSE WEDNESDAY AS BIG EXPORTERS' SHARES REBOUNDED STRONGLY DESPITE THE YEN'S CONTINUED STRENGTH THE NIKKEI INDEX GAINED 10029 POINTS TO 2069170 LONDON SHARE PRICES ENDED HIGHER ON BOOSTS FROM THE PROPERTY SECTOR AND US AND BRITISH ECONOMIC DATA STOCKS VOLUME 287037510 SHARES DOW JONES INDUSTRIALS 355345 UP 111 TRANSPORTATION 160433 UP 168 UTILITIES 24174 UP 138 BONDS LEHMAN BROTHERS TREASURY INDEX 512876 UP 1152 COMMODITIES OIL 2003 A BARREL OFF 21 CENTS DOW JONES FUTURES INDEX 12074 UP 070 SPOT INDEX 11971 OFF 018 DOLLAR 10720 YEN UP 015 15978 MARKS UP 00113 9306030022 930603 ERLY INDUSTRIES COMPLETES SALE LOS ANGELES ERLY INDUSTRIES INC SAID IT COMPLETED THE SALE OF ITS COMET RICE INC UNIT TO AMERICAN RICE INC IN A TRANSACTION THAT GIVES ERLY AN 80 VOTING INTEREST IN AMERICAN RICE FOR SUBSTANTIALLY ALL OF THE COMET RICE ASSETS HOUSTONBASED AMERICAN RICE EXCHANGED 14 MILLION SHARES OF NEWLY ISSUED AMERICAN RICE CONVERTIBLE VOTING PREFERRED STOCK COMET PREVIOUSLY OWNED ABOUT 48 OF AMERICAN RICE COMET RICE AND AMERICAN RICE ARE RICE PRODUCERS A SPOKESMAN FOR ERLY INDUSTRIES A FOOD PRODUCTS COMPANY DECLINED TO PLACE A VALUE ON THE TRANSACTION 9306030020 930603 AT&T SEEKS TO AVOID FEE TO NEW JERSEY BELL TIED TO INTRASTATE CALLS TRENTON NJ AMERICAN TELEPHONE & TELEGRAPH CO HAS FOLLOWED THE OTHER MAJOR LONGDISTANCE CARRIERS IN SEEKING TO END A SEVENYEAROLD PRACTICE IN NEW JERSEY OF PAYING A FEE TO NEW JERSEY BELL WHEN AT&T AND OTHER CARRIERS COMPLETE CERTAIN INTRASTATE LONGDISTANCE CALLS LAST WEEK AT&T BASED IN NEW YORK FILED A PETITION WITH THE NEW JERSEY BOARD OF REGULATORY COMMISSIONERS TO BE ABLE TO COMPETE FOR THE INTRASTATE CALLS WITHOUT HAVING TO PAY COMPENSATION TO NEW JERSEY BELL A UNIT OF BELL ATLANTIC CORP PHILADELPHIA IN THE PETITION AT&T ALSO ASKED TO CONSOLIDATE ITS CASE WITH THE PETITIONS PREVIOUSLY INITIATED BY MCI COMMUNICATIONS CORP AND SPRINT CORP AT&T CLAIMS THAT 80 OF ALL INTRASTATE TOLL CALLS IN NEW JERSEY ARE SUBJECT TO THE FEE WHICH IS ABOUT EIGHT CENTS A MINUTE AT&T SAID IT PAID MORE THAN 25 MILLION INTO NEW JERSEY BELL ON SUCH CALLS IN 1992 AT&T SAID THE NEW JERSEY REGULATORS HAVE SO FAR AGREED WITH NEW JERSEY BELL THAT THE FEE IS FAIR TO KEEP NEW JERSEY BELL WHOLE FOR THE LOSS OF CALLING BUSINESS THAT WOULD HAVE GONE OVER ITS OWN LINES OFFICIALS FROM NEW JERSEY BELL COULDN'T BE REACHED FOR COMMENT 9306030019 930603 LETTERS TO THE EDITOR YOU SWUNG A MEAT AX AT TIME YOUR MAY 12 PAGE ONE ARTICLE ON TIME MAGAZINE AND ITS FORMER MANAGING EDITOR HENRY MULLER IS THESIS JOURNALISM AT ITS WORST YOU USE INFORMATION QUOTES AND SOURCES WITH CALCULATED SELECTIVITY DISMISSING ANY FACTS AND VIEWS THAT MIGHT CHALLENGE YOUR PRECONCEPTIONS OR SLOW THE SWING OF YOUR MEAT AX FOR EXAMPLE YOU ASSERT THAT I REMOVED MR MULLER AS MANAGING EDITOR OF TIME WHEN AS I EXPLAINED IN GREAT DETAIL THE TRUTH IS THAT I PROMOTED HIM TO THE SECONDHIGHEST EDITORIAL POSITION IN OUR COMPANY HE HAD DONE SO WELL AT TIME THAT I BELIEVED ALL OUR MAGAZINES WOULD BENEFIT FROM THE APPLICATION OF HIS YOUTH AND ENERGY AND SUPERB LEADERSHIP SKILLS TO THE MANAGEMENT OF THE COMPANY AS A WHOLE THE ATTEMPT TO INSINUATE THAT GERALD LEVIN CHIEF EXECUTIVE OFFICER OF TIME WARNER INC PLAYED A ROLE IN THIS PROCESS IS TYPICAL OF YOUR SOPHOMORIC REPORTING STYLE TO GIVE CREDENCE TO THE CORRIDOR SPECULATIONS OF THOSE NOT IN A POSITION TO KNOW THE FACTS RATHER THAN BELIEVE THOSE WHO DO KNOW AND WHO SPOKE WITH YOU AT LENGTH AND WITH CANDOR IT IS THIS KIND OF JOURNALISM THAT CONTRIBUTES TO THE PUBLIC'S INCREASING DISLIKE AND DISTRUST OF THE MEDIA ONLY A JEALOUS COMPETITOR COULD ASSERT THAT TIME'S FRANCHISE DECLINED DURING MR MULLER'S NEARLY SIX YEARS AS MANAGING EDITOR YOU DON'T HAVE TO TAKE MY WORD FOR IT THE ULTIMATE MEASURE OF A MAGAZINE'S PERFORMANCE IS THE REACTION OF ITS READERS IN THE SECOND HALF OF 1992 FOLLOWING THE REDESIGN THAT CONSOLIDATED MR MULLER'S CONTRIBUTIONS TO THE MAGAZINE TIME'S CIRCULATION WAS STRONGER THAN AT ANY TIME IN RECENT MEMORY AND TODAY THE MAGAZINE IS DELIVERING A BONUS CIRCULATION OF 325000 ABOVE ITS GUARANTEED RATE BASE OF FOUR MILLION DURING MR MULLER'S TENURE TIME CONSISTENTLY MAINTAINED A 55 TO 60 NEWSSTAND MARKET SHARE AGAINST NEWSWEEK ALL THIS TOO WAS PROVIDED IN DETAIL TO YOUR OBVIOUS DISAPPOINTMENT A THESIS PROBLEM YOU CAVALIERLY SOLVED BY SIMPLY LEAVING IT OUT OF THE STORY NEVER MIND ALL THE OTHER THINGS WRONG WITH THE STORY IT IS YOUR SINGULARLY ONESIDED ASSAULT ON AN OUTSTANDING JOURNALIST THAT IS INEXPLICABLE AND INDEFENSIBLE AND YOU SHOULD BE ASHAMED OF HAVING PUBLISHED IT YOU QUOTE ME AS FOLLOWS WE HAD BECOME LARGELY IRRELEVANT IN JOURNALISTIC AND POLITICAL COMMUNITIES IN THIS COUNTRY WE WEREN'T READ AS OFTEN AS WE USED TO BE BY DECISION MAKERS AS OFTEN AND WITH AS MUCH CARE WE ARE TRYING TO CORRECT IT THE QUOTE IS ACCURATE WHAT IS MISSING AND IN THE CONTEXT THE OMISSION IS CRUCIAL IS AN INDICATION OF WHEN I SPOKE THOSE WORDS YOU INTERVIEWED ME LAST FALL AT LEAST TWO OR THREE MONTHS BEFORE JIM GAINES SUCCEEDED HENRY MULLER AS TIME'S MANAGING EDITOR BUT YOU USED THE QUOTE IN THE CONTEXT OF THAT CHANGE IN EDITORIAL MANAGEMENT THUS IMPLYING THAT I WAS CRITICAL OF THINGS MR MULLER DID WHILE HE WAS IN CHARGE IN FACT MY COMMENTS WERE MADE IN DEFENSE OF MR MULLER AND THE CHANGES HE MADE IN TIME IT COULD NOT HAVE BEEN OTHERWISE SINCE WHEN THE INTERVIEW OCCURRED THE ANNOUNCEMENT THAT MR GAINES WOULD TAKE MR MULLER'S PLACE HAD NOT YET EVEN BEEN MADE WHAT YOU FORGOT TO MENTION WAS THAT THE SAME ISSUE ALSO CONTAINED A FOURPAGE ARTICLE/INTERVIEW WITH NATIONAL TALK SHOW HOST RUSH LIMBAUGH MR LIMBAUGH CLAIMS MORE THAN 18 MILLION LISTENERS NOW IF ONLY 1 OF HIS LISTENERS BOUGHT THAT ISSUE OF TIME THAT WOULD ACCOUNT FOR THE INCREASE OVER THE NORMAL NEWSSTAND SALES YOUR ARTICLE ON THE WOES OF TIME FAILED TO MENTION THE ADVERSE PUBLICITY TIME WARNER INC RECEIVED OVER ITS PRODUCTION OF MADONNA'S SEX BOOK AND ICET'S COP KILLER RECORD I DECIDED MONTHS AGO NOT TO RENEW MY SUBSCRIPTION TO TIME AS A PROTEST AGAINST THE LOW ARTISTIC AND CULTURAL STANDARDS AT TIME WARNER WHAT HAPPENED TO THE MAGAZINE I USED TO LOVE 9306030018 930603 LEISURE & ARTS TV RUMPOLE AND A RODENT RANDY QUAID AS FRANKENSTEIN BY DOROTHY RABINOWITZ THE BARRISTER LEO MCKERN RUNS AFOUL OF HAUTE CUISINE IN THIS INSTALLMENT OF MYSTERY TITLED RUMPOLE A LA CARTE THE SEGMENT COULD EASILY BE MISTAKEN FOR A FAWLTY TOWERS ROMP THE SIMILARITY A WELCOME ONE WILL BE CLEAR IN THE RESTAURANT SCENE THE PLAYERS INCLUDE A DEFIANT RUMPOLE BENT ON A PROLETARIAN MEAL OF STEAK AND KIDNEY PIE A SNOBBISH CHEF WHO DECLAIMS AGAINST TASTELESS LOWLIFES AND A SMALL MOUSE THE MOUSE STEALS THE SCENE IN THE MIDST OF THE CHEF'S HARANGUE HE POPS OUT OF THE SUCCULENT DISH BEING PRESENTED TO A PAIR OF DINERS IN FULL VIEW OF SCREAMING PATRONS RUMPOLE WHO BECOMES THE CHEF'S LEGAL DEFENDER SETS ABOUT UNEARTHING HOW THE MOUSE GOT INTO THE BREAST OF RARE DUCK THE RESULT IS A LARK SET IN WHAT IS NOW ALLEGED TO BE THE NATION'S HOTTEST NEW PLAYGROUND MIAMI'S SOUTH BEACH THIS TWOHOUR PRODUCTION USHERS IN A NEW SERIES TO BEGIN JUNE 8 910 PM EDT FROM THE EVIDENCE HERE NEITHER THE REPUTATION OF SOUTH BEACH NOR THAT OF THE FILM'S PRODUCER WOLF FILMS IS LIKELY TO BE ENHANCED BY THE EFFORT THE STORY LINE FOLLOWS THE ADVENTURES OF A SCAM ARTIST YANCY BUTLER WITH A SOFT SPOT FOR HER BROTHER FORCED TO WORK UNDERCOVER FOR A FEDERAL AGENT JOHN GLOVER PLAYS THE LATTER WITH INTENSITY BORDERING ON THE HYSTERICAL WHICH IS TO SAY MR GLOVER IS HERE DOING HIS USUAL THE LOCAL COLOR ATMOSPHERIC NOISE AND NOT LEAST THE DIALOGUE WHICH RANGES FROM ARCH TO WITLESS SUGGEST THAT UNLESS THE SERIES THAT FOLLOWS IS A RADICAL IMPROVEMENT THIS BEACH IS GOING TO GO SOUTH IN A BIG WAY AND FAST CLIVE JAMES DEFINES FAME IN EIGHT ONEHOUR PROGRAMS WITH FOOTAGE OF NOTABLES FROM RUDOLF VALENTINO HOUDINI AND LENIN ON DOWN TO GORBACHEV GADHAFI AND WOODY ALLEN THE WORK CUTS A WIDE SWATH NEEDLESS TO SAY BUT DESPITE THE SUPERFICIALITY INTRINSIC TO SO RAMBLING AN ENTERPRISE IT IS IMMENSELY ENTERTAINING MR JAMES GETS OFF TO A GOOD START WITH SOME VENOMOUS MUSINGS ON THE NATURE OF FAME AT THE END OF THE 20TH CENTURY FOLLOWED BY A LACONIC MEDITATION ON THE LARGE NUMBER OF WOMEN AROUND TODAY WHO BELIEVE ELVIS PRESLEY IS NOT DEAD AND FURTHERMORE THAT HE IS IN LOVE WITH THEM AFTER THIS TONESETTING PROLOGUE IN WHICH HE ALSO DISCOURSES ON ELIZABETH TAYLOR AND HER FAME MR JAMES DOUBLES BACK TO THE LIVES OF EARLIER ICONS AND WHEN OCCASION WARRANTS THEIR FUNERALS NOT EVERYTHING COMES OFF WELL IN THIS ENDEAVOR NOR DOES A PLAYFUL IRONY SERVE EVERY SUBJECT MR JAMES TAKES UP WITNESS PART THREE'S JARRING LURCH FROM ADOLPH HITLER'S LIFE AND WORKS TO JOHNNY WEISSMULLER'S RENOWN AS TARZAN WEAKNESSES ASIDE MR JAMES'S SERIES DELIVERS EPIGRAMMATIC WIT IN HIGH DOSAGE ON THOSE GROUNDS ALONE IT IS WORTH COMMENDING AS A TELEVISION RARITY RANDY QUAID STARS AS THE MONSTER IN THIS EPIC FILMED WITH TELLING FIDELITY TO THE SPIRIT OF MARY SHELLEY'S ORIGINAL 1818 NOVEL NONE OF THE MANY PREVIOUS FRANKENSTEIN FILMS WAS AS FRIGHTENING AS THIS ONE MANAGES TO BE AND NOT ONLY BECAUSE OF THE MONSTER THIS WILL BE CLEAR IMMEDIATELY IN THE BEGINNING SCENES WHEN YOUNG DR VICTOR FRANKENSTEIN SHOWS A FRIEND THE END PRODUCTS OF HIS GENETIC EXPERIMENTS WITH ANIMALS THE MUTANTS MAKE ONLY A BRIEF APPEARANCE BUT THEY MAY HAUNT YOUR DREAMS FOR A FEW DAYS THIS ADMIRABLE TNT ORIGINAL PRODUCED AND DIRECTED BY DAVID WICKES MAINTAINS AN UNFALTERING DRAMATIC PACE RIGHT TO THE END IN ADDITION TO THE PSYCHOLOGICAL COMPLEXITIES MR WICKES AND CREW HAVE TROUBLED TO MAKE THIS A GENUINE PERIOD PIECE IT SHOWS AS DOES THE INTELLIGENCE OF THE PERFORMANCES BY MONSTER QUAID AND BY PATRICK BERGIN AS DR FRANKENSTEIN THIS INSTALLMENT IN THE NATIONAL GEOGRAPHIC EXPLORER SERIES LOOKS AT THE VOLGA IN THE SEMIMYSTICAL TERMS SUGGESTED BY THE TITLE ONCE IT HAS MEANDERED PAST THE EXCEEDINGLY TALKY START THE JOURNEY TURNS COMPELLING IF NOT ALWAYS CHEERFUL DOWN RIVER AT KAZAN SAYS THE NARRATIVE ARE THE ROVING BANDS OF HOODLUMS WHO STARTED GANG WARS AND STREET VIOLENCE UNKNOWN IN THE SOVIET UNION TILL THE FALL OF COMMUNISM THE KAZAN PHENOMENON AS IT IS CALLED IS NOW WIDESPREAD THIS COLORFUL BOAT RIDE IS IN SHORT NOT ENTIRELY A CRUISING VACATION FROM YOUR NIGHTLY NEWS 9306030017 930603 LAW JURY IN NEW YORKER TRIAL IS DEADLOCKED ON DAMAGES SAN FRANCISCO AP JURORS IN THE NEW YORKER LIBEL TRIAL TOLD A JUDGE YESTERDAY THEY WERE DEADLOCKED ON THE AMOUNT OF DAMAGES TO AWARD PLAINTIFF JEFFREY MASSON SIGNALING A FINDING OF LIBEL AGAINST WRITER JANET MALCOLM LAWYERS FOR BOTH SIDES SAID A MISTRIAL WOULD BE DECLARED IF THE JURY COULDN'T REACH AN AGREEMENT ON DAMAGES DELIBERATIONS WERE TO RESUME TODAY MS MALCOLM'S DECEMBER 1983 ARTICLE LATER PUBLISHED AS A BOOK FOCUSED ON MR MASSON'S 1981 FIRING AS PROJECTS DIRECTOR OF THE SIGMUND FREUD ARCHIVES NEARING THE END OF ITS THIRD DAY OF DELIBERATIONS THE JURY TOLD THE COURT IT COULDN'T REACH A UNANIMOUS DECISION ON THE AMOUNT OF DAMAGES FOR MR MASSON WHO IS SEEKING 75 MILLION THE EIGHT JURORS SAID THEY HAD AGREED ON ALL OTHER QUESTIONS BEFORE THEM TO REACH THE DAMAGE QUESTION THEY FIRST HAD TO DECIDE THAT MR MASSON HAD BEEN LIBELED BY MS MALCOLM ON AT LEAST ONE OF FIVE QUOTES HE WAS DISPUTING LAWYERS FOR BOTH MR MASSON AND THE NEW YORKER AGREED THE ANNOUNCEMENT MEANT THE JURY HAD FOUND LIBEL THE JURORS DIDN'T SAY WHETHER THEY HAD ALSO FOUND THE NEW YORKER RESPONSIBLE FOR LIBEL 9306030016 930603 BRUCE BABBITT IS ON SHORT LIST FOR HIGH COURT CLINTON'S INTERIOR SECRETARY IS SEEN AS INNOVATIVE AND POLITICALLY SKILLED BY JEFFREY H BIRNBAUM AND PAUL M BARRETT STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON INTERIOR SECRETARY BRUCE BABBITT IS ON PRESIDENT CLINTON'S SHORT LIST OF CANDIDATES FOR THE US SUPREME COURT OFFICIALS CLOSE TO THE DELIBERATIONS SAID THAT MR BABBITT A FORMER ARIZONA GOVERNOR AND ATTORNEY GENERAL IS AMONG A SMALL GROUP OF CANDIDATES THAT MR CLINTON IS CONSIDERING TO REPLACE RETIRING JUSTICE BYRON WHITE THE OTHERS INCLUDE BOSTON FEDERAL APPEALS COURT JUDGE STEPHEN BREYER AND EDUCATION SECRETARY RICHARD RILEY WHO HAS TOLD THE PRESIDENT AT LEAST ONCE THAT HE ISN'T INTERESTED IN THE JOB MR CLINTON IS EXPECTED TO ANNOUNCE HIS CHOICE SOON PERHAPS BY THE END OF THE WEEK A SPOKESMAN FOR MR RILEY DECLINED TO COMMENT AN AIDE TO MR BABBITT SAID THE SECRETARY WAS HIKING IN A NATIONAL PARK AND UNAVAILABLE TO COMMENT WHILE PONDERING HIS CHOICE FOR THE HIGH COURT THE PRESIDENT CONTINUED TO FACE PROBLEMS OVER THE NOMINATION OF LANI GUINIER AS ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS HE PUBLICLY DISTANCED HIMSELF FROM MS GUINIER WHO HAS WRITTEN ABOUT GIVING BLACK PEOPLE SPECIAL TREATMENT IN THE ELECTORAL PROCESS BUT CIVIL RIGHTS LEADERS INCLUDING THE REV JESSE JACKSON STEPPED UP PRESSURE ON MR CLINTON TO PROCEED WITH THE NOMINATION FOR THE SUPREME COURT MR CLINTON IS KNOWN TO BE SEEKING A MODERATE HE ALSO WANTS A PERSON OF STATURE IN PUBLIC LIFE BEYOND THE LEGAL PROFESSION IN ADDITION HE HAS SAID HE WANTS HIS NOMINEE TO WORK WELL WITH THE OTHER JUSTICES TO HELP FORM A CONSENSUS IN OTHER WORDS A PERSON OF DEMONSTRATED POLITICAL SKILLS WHAT'S MORE THE PRESIDENT HAS FOR SOME TIME BEEN ENAMORED OF THE IDEA OF PUTTING A POLITICIAN PARTICULARLY A GOVERNOR ON THE SUPREME COURT TO FOLLOW THE EXAMPLE OF FORMER CHIEF JUSTICE EARL WARREN WHO WAS GOVERNOR OF CALIFORNIA WHITE HOUSE AND CONGRESSIONAL OFFICIALS SAY MR BABBITT FITS MR CLINTON'S CRITERIA HE WAS CONSIDERED ONE OF THE MOST INNOVATIVE GOVERNORS AND RAN A CREDIBLE CAMPAIGN FOR PRESIDENT IN 1988 HE ALSO HAS TIES TO THE CURRENT HIGH COURT HE APPOINTED SANDRA DAY O'CONNOR NOW A SUPREME COURT JUSTICE TO THE ARIZONA BENCH WHEN HE WAS GOVERNOR ALSO CHIEF JUSTICE WILLIAM REHNQUIST LIVED AND PRACTICED LAW IN PHOENIX FOR MANY YEARS AND WAS ACTIVE IN REPUBLICAN POLITICS THERE A BABBITT APPOINTMENT THUS WOULD CREATE A HIGHLY UNUSUAL SITUATION ONETHIRD OF THE NINE JUSTICES WOULD HAIL FROM THE SAME STATE A HARVARD LAW SCHOOL GRADUATE THE 54YEAROLD MR BABBITT WAS ARIZONA'S ATTORNEY GENERAL IN THE 1970S AND BECAME GOVERNOR WHEN GOV WESLEY BOLIN DIED HE WON THE 1978 GUBERNATORIAL RACE AFTER CAMPAIGNING AS A TOUGH CRIME FIGHTER HE WAS REELECTED IN 1982 AND LEFT OFFICE IN 1987 TO RUN FOR PRESIDENT MR BABBITT OPENED HIS CAMPAIGN FOR PRESIDENT WITH AN ATTACK ON AMATEURS IN CHARGE OF THE WHITE HOUSE HE RAN AS A CENTRIST OR NEOLIBERAL DEMOCRAT STRESSING ENVIRONMENTAL LEGISLATION MEDICAID REFORM AND PROGRAMS FOR CHILDREN AMONG HIS GUBERNATORIAL ACCOMPLISHMENTS HE WAS CONSIDERED ONE OF THE MORE INTELLECTUAL CANDIDATES IN THE 1988 RACE AND SOME ADMINISTRATION ADVISERS BELIEVE THAT HIS SHARP MIND AND POLITICAL SKILLS WOULD SERVE HIM WELL ON THE HIGH COURT AS INTERIOR SECRETARY MR BABBITT HAS BEEN POPULAR WITH CONSERVATIONISTS BUT UNPOPULAR AMONG WESTERN ECONOMIC INTERESTS AND SOME LAWMAKERS HE HAS BEEN FORCED TO DEFEND THE ADMINISTRATION'S DECISION TO SCALE BACK PLANS FOR REDUCING MINING AND GRAZING SUBSIDIES IN THE FACE OF OPPOSITION FROM WESTERN SENATORS IN THE WHITE HOUSE HOWEVER HE HAS BEEN LAVISHLY PRAISED FOR TRAVELING THROUGHOUT THE WEST ON BEHALF OF THE PRESIDENT AND HIS STILLNASCENT ENVIRONMENTAL AND LAND POLICIES MR RILEY 60 ALSO WOULD FIT MR CLINTON'S DESCRIPTION OF THE IDEAL NOMINEE AN ACCOMPLISHED LAWYER AND SON OF A LAWYER HE SERVED AS GOVERNOR OF SOUTH CAROLINA FROM 1979 TO 1987 AS GOVERNOR HE EARNED A REPUTATION AS A FISCAL CONSERVATIVE BUT ALSO WORKED AS DID MR CLINTON IN ARKANSAS TO IMPROVE HIS STATE'S EDUCATION SYSTEM THE GRADUATE OF THE UNIVERSITY OF SOUTH CAROLINA LAW SCHOOL WORKED BRIEFLY FOR THE SENATE JUDICIARY COMMITTEE AND HAS PRACTICED WITH PRIVATE LAW FIRMS MR CLINTON AND MR RILEY GREW CLOSE DURING THEIR YEARS AS GOVERNORS OF SOUTHERN STATES MR RILEY HELD A TOP PERSONNEL POST IN THE CLINTON TRANSITION EFFORT LAST YEAR BUT HAS KEPT A LOW PROFILE AS HEAD OF MR CLINTON'S EDUCATION DEPARTMENT JUDGE BREYER 54 IS KNOWN TO HAVE THE SUPPORT OF SENATE JUDICIARY COMMITTEE CHAIRMAN JOSEPH BIDEN D DEL HE ALSO IS BACKED BY ANOTHER LEADING COMMITTEE DEMOCRAT SEN EDWARD KENNEDY OF MASSACHUSETTS FOR WHOM HE ONCE WORKED IN ADDITION HE TAUGHT AT HARVARD LAW SCHOOL FOR 15 YEARS AND HAS BROAD PUBLICSERVICE EXPERIENCE AS A CONGRESSIONAL STAFFER HE HELPED PLAN THE DEREGULATION OF THE AIRLINE INDUSTRY IN THE LATE 1970S HE ALSO WAS A KEY ARCHITECT OF TOUGH FEDERAL SENTENCING GUIDELINES INTRODUCED IN 1987 JUDGE BREYER HAS DECLINED TO COMMENT ON HIS CANDIDACY FOR THE SUPREME COURT ANOTHER PERSON WHO HAS BEEN UNDER CONSIDERATION IN RECENT DAYS IS JON NEWMAN A FEDERAL APPEALS COURT JUDGE FROM CONNECTICUT SEPARATELY MR CLINTON AND SUPPORTERS OF MS GUINIER PLUNGED INTO A MESSY SPAT OVER THE FATE OF MS GUINIER'S NOMINATION FOR ASSISTANT ATTORNEY GENERAL WE'RE URGING HIM TO STAND TALL ON AN EXCELLENT NOMINATION MR JACKSON SAID AT A NEWS CONFERENCE OF CIVIL RIGHTS LEADERS THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE BEGAN A TELEPHONE CAMPAIGN TO THE WHITE HOUSE IN SUPPORT OF MS GUINIER AND ATTORNEY GENERAL JANET RENO AFFIRMED HER SUPPORT BUT MR CLINTON WOULDN'T GIVE THE 43YEAROLD LAW PROFESSOR AN UNQUALIFIED ENDORSEMENT HE TOLD REPORTERS HE DIDN'T AGREE WITH ALL OF HER WRITINGS AND SAID HE WOULD CONSULT WITH SENATORS ABOUT THE FATE OF HER NOMINATION IN THE SENATE FEW OF THE DEMOCRATS POLLED BY THE WHITE HOUSE SAID THEY WOULD BACK MS GUINIER AND CHANCES REMAINED STRONG THAT HER NOMINATION WOULD BE WITHDRAWN IN THE MEANTIME WHITE HOUSE AIDES PROLONGED THE CONTROVERSY BY CONTINUING TO DEBATE THE COST OF DROPPING THE NOMINATION SUCH A MOVE WOULD ANGER THE HOUSE'S BLACK CAUCUS AND OTHER LIBERAL GROUPS BUT WOULD ASSUAGE CONSERVATIVE AND MODERATES DEMOCRATS 9306030015 930603 WHAT'S NEWS WORLDWIDE CLINTON IS WEIGHING INTERIOR CHIEF BABBITT AS A SUPREME COURT CANDIDATE BRUCE BABBITT 54 A FORMER ARIZONA GOVERNOR AND ATTORNEY GENERAL IS AMONG A SMALL GROUP OF CANDIDATES THAT THE PRESIDENT IS CONSIDERING TO SUCCEED RETIRING JUSTICE WHITE OFFICIALS SAID OTHERS INCLUDE BOSTON FEDERAL APPEALS COURT JUDGE BREYER AND EDUCATION SECRETARY RILEY WHO HAS TOLD CLINTON HE ISN'T INTERESTED IN THE JOB THE PRESIDENT IS SEEKING A MODERATE NOMINEE WHO CAN WORK WITH THE OTHER JUSTICES TO FORM A CONSENSUS THE PRESIDENT SAID HE WOULD CONSULT WITH SENATORS ABOUT THE NOMINATION OF LANI GUINIER AS ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS SAYING HE DIDN'T AGREE WITH ALL OF HER WRITINGS GUATEMALA'S VICE PRESIDENT PROCLAIMED HIMSELF PRESIDENT AFTER A MILITARYLED COUP THAT TOPPLED FORMER PRESIDENT SERRANO A DAY EARLIER ESPINA IMMEDIATELY RECEIVED THE BACKING OF THE DEFENSE MINISTER MEANWHILE SERRANO LEFT FOR EL SALVADOR BUT WAS EXPECTED TO ARRIVE SOON IN TEXAS TO VISIT HIS MOTHER THE STATE DEPARTMENT SAID OUSTED YUGOSLAV PRESIDENT COSIC SAID SERBIAN LEADER MILOSEVIC COMMITTED A CLASSIC STALINIST ACT IN ENGINEERING COSIC'S DISMISSAL BY PARLIAMENT THIS WEEK IN BOSNIA MEANWHILE SERB ARTILLERY POUNDED GORAZDE SETTING SOME PARTS OF THE MUSLIM ENCLAVE ABLAZE AND ONE BROADCAST DESCRIBED THE CITY AS A MASS GRAVE GERMAN POLITICAL LEADERS CHIDED CHANCELLOR KOHL FOR HIS MEASURED RESPONSE TO THE FIREBOMBING OF A TURKISH APARTMENT HOUSE SATURDAY THE PRESIDENT OF THE LOWER HOUSE OF PARLIAMENT SAID THE ATTACK WHICH KILLED FIVE TURKS REFLECTED A SICKNESS IN GERMAN SOCIETY THE INCIDENT IN SOLINGEN HAS TOUCHED OFF PROTESTS ACROSS GERMANY BLACKS AND WHITES WILL VOTE TOGETHER FOR THE FIRST TIME IN SOUTH AFRICAN ELECTIONS IN APRIL 1994 ACCORDING TO A TENTATIVE ACCORD BETWEEN THE GOVERNMENT AND THE AFRICAN NATIONAL CONGRESS A PARLIAMENTARY DEPUTY SAID THE AGREEMENT IS EXPECTED TO BE OFFICIALLY ANNOUNCED TODAY BY LEADERS OF THE COUNTRY'S 26 POLITICAL PARTIES CAMBODIA'S OPPOSITION PARTIES APPEARED CERTAIN TO WIN A MAJORITY IN A NEW CONSTITUENT ASSEMBLY ACCORDING TO A TALLY OF NEARLY 90 OF THE VOTES CAST IN LAST WEEK'S ELECTIONS THE COUNT SHOWED PRIME MINISTER HUN SEN'S REGIME IN DEEP TROUBLE LEADING THE OPPOSITION WAVE IS THE PROWEST FUNCINPEC PARTY CLINTON IS EXPECTED TO ANNOUNCE THAT HE WILL FREEZE THE US FINANCIAL ASSETS AND REVOKE VISAS OF THE LEADERS OF HAITI'S GOVERNMENT AND SOME OF THEIR TOP SUPPORTERS THE ACTIONS ARE INTENDED TO PUT ADDITIONAL PRESSURE ON HAITI'S MILITARY GOVERNMENT TO RESTORE DEMOCRACY A FRENCH APPEALS COURT RULED THAT AN ACCUSED WORLD WAR II NAZI COLLABORATOR PAUL TOUVIER MUST STAND TRIAL BECAUSE OF HIS ALLEGED INVOLVEMENT IN THE 1944 EXECUTION OF SEVEN JEWS BY THE GESTAPO TOUVIER 78 WOULD BE THE FIRST FRENCH CITIZEN TO FACE TRIAL FOR CRIMES AGAINST HUMANITY LABOR UNIONS ARE PREPARING A MASSIVE LOBBYING EFFORT TO SELL CLINTON'S HEALTHCARE OVERHAUL PLAN TO THEIR MEMBERS AND THE PUBLIC LATER THIS YEAR WHILE DETAILS OF THE HEALTH PROGRAM HAVEN'T BEEN UNVEILED UNION OFFICIALS FEEL THEY HAVE ENOUGH INFORMATION TO BACK THE PLAN DEFENSE SECRETARY ASPIN SAID THE QUALITY OF THE US ARMED FORCES HAS FALLEN OFF THE PEAK REACHED JUST TWO YEARS AGO AND DEBATES OVER ISSUES SUCH AS HOMOSEXUALS AND WOMEN IN THE MILITARY MAY CAUSE IT TO SLIP EVEN FURTHER ITALIAN POLICE CAPTURED A TOP MAFIALINKED FIGURE AND HIS BODYGUARD ON A FARM ABOUT 25 MILES FROM CATANIA SICILY GIUSEPPE PULVIRENTI HAD BEEN A FUGITIVE FOR 11 YEARS SEPARATELY POLICE IN ROME DEFUSED EXPLOSIVES IN A CAR NEAR THE PRIME MINISTER'S OFFICE US OFFICIALS MET WITH NORTH KOREAN DIPLOMATS BUT MADE LITTLE PROGRESS IN PERSUADING PYONGYANG TO DROP PLANS TO WITHDRAW FROM A NUCLEAR NONPROLIFERATION TREATY THIS MONTH THE HIGHLEVEL TALKS ARE TO RESUME TOMORROW AT THE UN COLOMBIAN GUNMEN ASSASSINATED A FORMER VICE PRESIDENT OF THE NATION'S SUPREME COURT AS HE DROVE THROUGH A SUBURB OF MEDELLIN POLICE SAID THE SLAIN JUDGE JAIRO DUQUE PEREZ SERVED ON THE COURT FOR FOUR YEARS 9306030014 930603 CLEAR MESSAGE MCIBT TIE IS SEEN SETTING OFF A BATTLE IN COMMUNICATIONS IT WILL INCREASE COMPETITION TRIM PRICES AND EXPAND SERVICES AROUND WORLD A NEW CHALLENGE FOR AT&T BY JOHN J KELLER AND MARY LU CARNEVALE STAFF REPORTERS OF THE WALL STREET JOURNAL BRITISH TELECOMMUNICATIONS PLC'S 43 BILLION INVESTMENT IN MCI COMMUNICATIONS CORP SETS OFF A BATTLE AMONG GIANTS A BATTLE EXPECTED TO SPUR COMPETITION HASTEN MODERNIZATION CUT PRICES AND EXPAND GLOBAL TELECOMMUNICATIONS SERVICES FOR BUSINESSES THE NEW ALLIANCE AND OTHERS THAT WILL COMPETE WITH IT WILL BRING ONESTOP SHOPPING FOR TRANSMISSION LINKS AND THE ABILITY TO TRULY GLOBALIZE A CORPORATE NETWORK IT ALSO MARKS THE BEGINNING OF THE END FOR STATE TELECOMMUNICATIONS MONOPOLIES AS THE NEW GLOBAL NETWORKS OFFER SERVICES TO WHICH COMPANIES AND CONSUMERS WILL WANT DIRECT ACCESS AND THE NEW BTMCI ALLIANCE IS A DIRECT ASSAULT ON AMERICAN TELEPHONE & TELEGRAPH CO'S PLANS TO OFFER GLOBAL SERVICES TO MULTINATIONAL CORPORATIONS THIS IS AT&T'S WORST NIGHTMARE SAYS BERGE AYVAZIAN TELECOMMUNICATIONS ANALYST AT YANKEE GROUP A BOSTON RESEARCH FIRM BT'S NOW INTIMATELY PARTNERED WITH AT&T'S MAIN US COMPETITOR LAST WEEK AT&T SAID IT WOULD OFFER A GLOBAL SERVICE IN COMBINATION WITH SEVERAL INTERNATIONAL CARRIERS INCLUDING JAPAN'S KOKUSAI DENSHIN DENWA AND SINGAPORE TELECOM AT&T ALSO SAID IT WOULD BUILD A NETWORK IN EUROPE IF IT COULDN'T FIND EUROPEAN PARTNERS TO JOIN ITS NEW SERVICE CALLED WORLDSOURCE YESTERDAY THE COMPETITION SHOWED UP EVEN BEFORE AT&T'S NEW SERVICE HAD BEGUN THE BENEFITS THAT CORPORATE CUSTOMERS SEEM CERTAIN TO REAP FROM THIS COMPETITION WILL EVENTUALLY FLOW TO CONSUMERS AND NOT JUST THOSE IN THE US THE BTMCI DEAL APPLIES PRESSURE ON FOREIGN GOVERNMENTS TO BREAK DOWN THE BARRIERS THAT THEY HAVE MAINTAINED AGAINST TELECOMMUNICATIONS COMPETITORS SAYS BRIAN MOIR A WASHINGTON ATTORNEY WHO REPRESENTS BIG CORPORATIONS NEGOTIATING FOR COMMUNICATIONS SERVICES THE PACT AND AT&T'S LINKUPS AS WELL WILL FORCE GOVERNMENTS TO OPEN THEIR MARKETS TO FOREIGN INVESTMENT AND ALLOW ALLIANCES WITH THEIR NATIONAL CARRIERS ALREADY THE INDUSTRY HAS BEEN SLOWLY MOVING TOWARD ALLIANCES FRANCE TELECOM LAST YEAR REACHED A MORELIMITED COOPERATION PACT WITH DEUTSCHE TELEKOM OF GERMANY AND CANADA'S BCE INC TOOK A MINORITY STAKE IN MERCURY COMMUNICATIONS LTD A CABLE & WIRELESS PLC UNIT THAT COMPETES WITH BT FOR LONGDISTANCE TELEPHONE CUSTOMERS IN THE UK A FRANCE TELECOM SPOKESMAN SAID HIS COMPANY IS CONTINUING ITS LONGSIMMERING TALKS WITH AT&T ABOUT A POSSIBLE ALLIANCE THE FRENCH AND GERMAN GOVERNMENTS ARE PREPARING TO SELL THEIR STATEOWNED MONOPOLIES TO THE PUBLIC AND THEIR NEW GLOBAL JOINT VENTURE EUNETCOM HAS BEEN TRYING TO GET AT&T OR MCI TO BECOME ITS US PARTNER UNDER THE AGREEMENT BT WILL PAY 43 BILLION IN CASH FOR A 20 STAKE IN WASHINGTONBASED MCI BT WILL RECEIVE NEWLY ISSUED MCI SHARES AT AN AVERAGE PRICE OF 64 A SHARE IT WILL BEGIN ITS INVESTMENT TOMORROW BY PURCHASING APPROXIMATELY 830 MILLION OF PREFERRED STOCK CONVERTIBLE INTO 49 OF MCI'S COMMON AND IT WILL ACQUIRE THE REMAINING 151 FOR AN ESTIMATED 34 BILLION WHEN THE TRANSACTION IS CLOSED BY EARLY 1994 THE LONDON STOCK MARKET IMMEDIATELY FELT THE REVERBERATIONS TRADERS BEGAN SPECULATING THAT CABLE & WIRELESS COULD BECOME A TARGET FOR A TAKEOVER POSSIBLY BY AT&T CABLE & WIRELESS STOCK ROSE 14 PENCE A SHARE TO 748 PENCE 1152 IN LATE LONDON TRADING A CABLE & WIRELESS SPOKESMAN DECLINES TO COMMENT BUT DESPITE BT'S EFFORTS TO BALLYHOO ITS OWN DEAL LONDON TRADERS WERE INITIALLY BEARISH ABOUT THE EXPENSE AND RISK THE VENTURE REPRESENTS FOR LONDONBASED BT ITS STOCK PRICE SLIPPED FIVE PENCE A SHARE TO 4215 PENCE 649 IN HEAVY OVERTHECOUNTER TRADING MCI'S SHARES ROSE 1625 TO 54375 AT&T'S STOCK ENDED UNCHANGED AT 62 A SHARE JOSEPH NACCHIO PRESIDENT OF AT&T'S BUSINESS COMMUNICATION SERVICES SAYS THAT WE WON'T RULE ANYTHING OUT ABOUT ENTERING THE UK MARKET HE NOTES AT&T HAS ALREADY FILED FOR A LICENSE TO OFFER INTERNATIONAL SERVICES IN BRITAIN THEY COULD OK THAT REQUEST AND WE'D ENTER THE MARKET THAT WAY HE SAYS BRUSHING ASIDE THE SUGGESTION OF HEIGHTENED COMPETITION FROM THE BTMCI ALLIANCE MR NACCHIO SAYS HE EXPECTS IT TO HELP FREE AT&T FROM REGULATION MORE QUICKLY THE MOST ARDENT REGULATORS WILL RECOGNIZE THAT AT&T DESERVES THE SAME FREEDOM FROM TARIFFS AND PRICECAP REGULATION AS MCI HE SAYS AND THE IMPROVEMENTS IN INTERNATIONAL NETWORKS SHOULD INCREASE ALL CARRIERS' REVENUES ALL BOATS WILL RISE IN THAT OCEAN HE ADDS BT AND MCI TALKED OF AN ALLIANCE FOR THREE YEARS BUT ON EACH PREVIOUS OCCASION THE NEGOTIATIONS FELL APART THEN A MONTH AGO MCI CHAIRMAN BERT C ROBERTS JR AND BT CHAIRMAN IAIN VALLANCE AGREED OVER LUNCH IN NEW YORK THAT AN ALLIANCE MADE STRATEGIC SENSE BUT TALKS BROKE DOWN OVER DETAILS SOME VERY TECHNICAL VERY INVESTMENTBANKING ORIENTED SAYS DANIEL AKERSON MCI'S PRESIDENT HOWEVER MR AKERSON SAYS BT GROUP MANAGING DIRECTOR MICHAEL HEPHER CALLED FROM LONDON TWO WEEKS AGO WITH A PLEA AN ALLIANCE MAKES SENSE LET'S DISCUSS IT AGAIN AFTER A FRANTIC FOURHOUR SCRAMBLE TO GET MR AKERSON'S EXPIRED PASSPORT RENEWED THE MCI PRESIDENT FLEW TO LONDON WITH JOHN WHITESIDE MCI'S VICE PRESIDENT FOR STRATEGY AND TECHNOLOGY THEY BROUGHT A LAUNDRY LIST OF PROBLEMS AFTER THE FIRST DAY MR AKERSON WAS SO CONVINCED THAT TALKS WOULDN'T COME TO FRUITION THAT HE AND MR WHITESIDE CHECKED OUT OF THEIR HOTEL EARLY AFTER DECIDING TO GIVE IT ANOTHER TRY WE HAD TO TRUNDLE BACK LATER TO SEE IF WE COULD GET A ROOM AT THE INN HE JOKES AFTER A WEEK OF 15 AND 16HOUR SESSIONS IN LONDON NEGOTIATIONS MOVED TO NEW YORK WHERE THEY WERE COMPLETED ON TUESDAY WITH THE APPROVAL OF BOTH BOARDS BY 1994 MCI AND BT EXPECT TO HAVE A DEFINITIVE AGREEMENT AND REGULATORY AND SHAREHOLDER APPROVALS BT WILL ALSO TRANSFER ITS BT NORTH AMERICA SUBSIDIARY WHICH OWNS THE GIANT TYMNET DATA NETWORK TO MCI IN ADDITION THE TWO PARTNERS WILL JOINTLY INVEST MORE THAN 1 BILLION IN A NEW COMPANY THAT WILL COMBINE THEIR EFFORTS TO PROVIDE GLOBAL VOICE AND DATA SERVICES TO MULTINATIONAL CORPORATIONS WHILE BT WILL HOLD APPROXIMATELY 75 OF THE EQUITY IN THE NEW VENTURE THE COMPANIES SAY THEY WILL ACT AS EQUAL PARTNERS MCI TOOK PAINS YESTERDAY TO EMPHASIZE THAT IT INTENDS TO REMAIN INDEPENDENT BT HAS AGREED NOT TO INCREASE ITS STAKE IN MCI FOR 10 YEARS MCI WILL OVERSEE MARKETING OF GLOBAL VOICE AND DATA SERVICES IN NORTH SOUTH AND CENTRAL AMERICA AND THE CARIBBEAN BT WILL SUPERVISE EVERYWHERE ELSE WITH SPECIAL EMPHASIS ON WESTERN EUROPE AND THE PACIFIC RIM THE PACT ALSO CALLS FOR BT TO PLACE THREE DIRECTORS ON MCI'S BOARD EXPANDING IT TO 15 MEMBERS AND MCI CHAIRMAN ROBERTS WILL JOIN BT'S BOARD FOR ITS INVESTMENT BT THE STAID FORMER TELEPHONE MONOPOLY BECOMES A CLOSE COLLABORATOR WITH MCI PERHAPS THE WORLD'S SAVVIEST MARKETER OF TELECOMMUNICATIONS SERVICES MCI PROGRAMS SUCH AS FRIENDS & FAMILY GLOBAL COMMUNICATIONS SERVICES FOR BUSINESSES AND THE RECENTLY LAUNCHED 1800COLLECT ARE LURING MILLIONS OF CUSTOMERS FROM AT&T FOR THE UK WE SUGGESTED CALLING THE SERVICE FOLKS & BLOKES QUIPS MCI PRESIDENT AKERSON MR AKERSON RECENTLY ACKNOWLEDGED THAT MCI COULDN'T GO IT ALONE AGAINST AT&T IN THE INTERNATIONAL MARKET AND WOULD SEEK TO COMBINE ITS EFFORTS WITH OTHER PLAYERS IN TELECOMMUNICATIONS AND CABLE TELEVISION ITS PROBLEM YANKEE GROUP'S MR AYVAZIAN SAYS IS THAT AT&T'S RESOURCES ARE TOO VAST WITH MORE THAN 65 BILLION IN ANNUAL REVENUE COMPARED WITH MCI'S 10 BILLION AND HUGE SPENDING POWER AT&T CAN MOVE FREELY INTO NEW MARKETS LIMITED RESOURCES KEPT MCI FROM MOVING QUICKLY INTO SOME OF THE NEWER DATATRANSMISSION AND NETWORKMANAGEMENT SERVICES COMMONLY CALLED OUTSOURCING THIS HE SAYS HOBBLED MCI'S ABILITY TO NEGOTIATE WITH MAJOR CORPORATIONS' COMPUTER EXECUTIVES FOR BIG SERVICE AGREEMENTS NOW MCI IS GETTING A PARTNER WITH DEEP POCKETS AND A DESIRE TO MEET AT&T HEADON IN INTERNATIONAL SERVICES BT'S SYNCORDIA UNIT WHICH OFFERS INTERNATIONAL VOICE AND DATANETWORKMANAGEMENT SERVICES TO USBASED CORPORATIONS WOULD GIVE MCI A FOOTHOLD IN THESE MARKETS HE SAYS MR AKERSON ALSO NOTES THAT THE TWO COMPANIES OPERATE IN HOME MARKETS WHERE MOST MAJOR BUSINESS CUSTOMERS ARE BASED SOME 40 OF THE WORLD'S MULTINATIONAL CORPORATIONS ARE HEADQUARTERED IN THE US HE NOTES AND 13 ARE IN THE UK MCI AND BT WILL SEEK REGULATORY CLEARANCES IN THE US AND EUROPE ONCE A DEFINITIVE AGREEMENT IS REACHED IN COMING WEEKS MCI PLANS TO ASK THE FEDERAL COMMUNICATIONS COMMISSION FOR A DECLARATORY RULING CONFIRMING THE COMPANY'S ASSESSMENT THAT THE JOINTVENTURE COMPANY AND BT'S 20 STAKE DON'T VIOLATE FCC OWNERSHIP RULES BT WILL PURSUE APPROVAL IN THE UK AND WITH THE EUROPEAN COMMISSION IN BRUSSELS FCC CHAIRMAN JAMES QUELLO SAYS THAT ON THE FACE OF IT THE BTMCI ALLIANCE SEEMS A POSITIVE DEVELOPMENT FOR US TELECOMMUNICATIONS THOUGH THE AGENCY WILL HAVE TO WEIGH ANY OBJECTIONS IT WILL BE A BIG INFUSION OF CAPITAL INTO A US COMPANY AND THAT'S A NICE SWITCH HE SAYS ADDING THAT IT WILL OPEN UP MORE INTERNATIONAL MARKETS TO MCI AND OFFER MORE EFFECTIVE COMPETITION TO AT&T WILLIAM T ESREY CHAIRMAN OF SPRINT CORP THE THIRDLARGEST US CARRIER AGREES MCI HAS DONE A GOOD FINANCIAL TRANSACTION BUT HE IS SURPRISED MCI WOULD TURN OVER MUCH OF ITS INTERNATIONAL BUSINESS TO BT MANAGEMENT SPRINT HE SAYS WOULDN'T ACCEPT SUCH A CONDITION BUT MCI OBVIOUSLY DECIDED THE FINANCIAL BENEFITS OUTWEIGHED SOME LOSS OF INDEPENDENCE IT'S FINANCIAL MUSCLE WE DIDN'T HAVE IN THE PAST MR ROBERTS SAYS AT THE NEWS CONFERENCE THE MCI CHAIRMAN TARGETED SEVERAL AREAS FOR LIKELY INVESTMENT INCLUDING ALLIANCES WITH CABLE COMPANIES AND OTHERS THAT DISTRIBUTE CALLS LOCALLY BYPASSING THE LOCAL PHONE NETWORK AND REDUCING THE HEFTY CHARGES MCI PAYS TO LOCAL PHONE COMPANIES TO COMPLETE CALLS SUCH PLANS AND MCI'S NEWFOUND RESOURCES LEAD WALL STREET AND CABLEINDUSTRY EXPERTS TO SPECULATE THAT MCI WILL USE SOME OF ITS BT BACKING TO BUY A STAKE IN A CABLETV COMPANY SUCH AS TELECOMMUNICATIONS INC OR A LARGE DATASERVICES FIRM IN RECENT MONTHS MCI HAS TALKED WITH TCI THE NATION'S LARGEST CABLE COMPANY TIME WARNER INC AND GENERAL MOTORS CORP'S ELECTRONIC DATA SYSTEMS MCI OFFICIALS DECLINE TO COMMENT ON POSSIBLE FUTURE PARTNERS MR ROBERTS SAYS THE COMPANY HAS KEEN INTEREST IN THE EMERGING MULTIMEDIA AND INTERACTIVE INFORMATION AND ENTERTAINMENT BUSINESSES AS WELL AS NEW WIRELESS SERVICES INCLUDING POCKET PHONES AND HANDHELD DEVICES THAT CAN RECEIVE AND SEND INFORMATION ALL THIS WOULD TAKE SEAMLESS GLOBAL SERVICES FROM THE NEW INTERNATIONAL PARTNERSHIPS AND INTENSIVE SOFTWARE DEVELOPMENT ADVANCED SOFTWARE CONTROLS THE NETWORK EQUIPMENT THAT WOULD PROVIDE SUCH SERVICES MR ROBERTS INDICATES THAT MCI'S FUTURE IS CERTAIN TO INCLUDE ALLIANCES WITH SOFTWARE CONCERNS RICHARD L HUDSON AND GAUTAM NAIK CONTRIBUTED TO THIS ARTICLE 9306030013 930603 SEC EXPANDS INVESTIGATION OF MUNI BONDS BY LAURIE P COHEN STAFF REPORTER OF THE WALL STREET JOURNAL THE SECURITIES AND EXCHANGE COMMISSION HAS BEGUN A BROADBASED INVESTIGATION INTO HOW STATE AND LOCAL GOVERNMENTS AWARD MUNICIPAL BOND OFFERINGS TO SECURITIES UNDERWRITERS ACCORDING TO INDIVIDUALS WITH KNOWLEDGE OF THE INQUIRY THE SEC'S MARKET REGULATION DIVISION HAS ALREADY BEGUN CONTACTING WALL STREET FIRMS THAT UNDERWRITE MUNICIPAL BONDS OR PROVIDE ADVISORY SERVICES TO STATE AND LOCAL GOVERNMENTS THESE INDIVIDUALS SAY THE INQUIRY IS LIKELY TO LEAD TO TOUGHER SEC REGULATION OF THE LOOSELY CONTROLLED MUNICIPALBOND MARKET THE SEC'S INVESTIGATION STEMMED FROM THE INQUIRY BY THE MANHATTAN US ATTORNEY'S OFFICE AND THE NEW YORK OFFICE OF THE SEC INTO A 29 BILLION SALE OF BONDS BY THE NEW JERSEY TURNPIKE AUTHORITY FEDERAL INVESTIGATORS ARE SCRUTINIZING WHETHER MERRILL LYNCH & CO AND OTHER SECURITIES FIRMS MAY HAVE DONE FINANCIAL FAVORS FOR STATE POLITICIANS TO WIN BOND BUSINESS THE BROADBASED INVESTIGATION IS BEING LED BY MARK FITTERMAN THE ASSOCIATE DIRECTOR OF THE SEC'S MARKET REGULATION DIVISION SAY INDIVIDUALS WHO HAVE BEEN CONTACTED IN CONNECTION WITH THE INQUIRY THE SEC'S ACTION COMES AS SEVERAL MEMBERS OF CONGRESS ARE CALLING FOR MORE INTENSE REGULATION OF THE MUNICIPALBOND INDUSTRY ON MAY 24 REP JOHN DINGELL D MICH CHAIRMAN OF THE HOUSE COMMITTEE ON ENERGY AND COMMERCE AND EDWARD J MARKEY D MASS CHAIRMAN OF THE HOUSE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE WROTE TO THE SEC THE NATIONAL ASSOCIATION OF SECURITIES DEALERS AND THE MUNICIPAL SECURITIES RULEMAKING BOARD IN THE LETTER THE CONGRESSMEN SAID THEY WERE LOOKING INTO THE FACTS AND CIRCUMSTANCES SURROUNDING THE RECENT NEW JERSEY TURNPIKE REFUNDING SCANDAL AND THE ADEQUACY OF THE CURRENT LAWS AND REGULATIONS APPLICABLE TO THE ISSUANCE AND SALE OF MUNICIPAL SECURITIES THE REPRESENTATIVES ASKED THE THREE AGENCIES TO TAKE A COMPREHENSIVE LOOK AT THE PRESENT SCHEME OF REGULATION IN LIGHT OF THE CURRENT SCANDALS INVOLVING ALLEGED ILLEGAL PAYOFFS INFLUENCE PEDDLING CONFLICTS OF INTERESTS AND QUESTIONABLE SALES PRACTICES REPS MARKEY AND DINGELL ASKED THE SEC AND THE TWO SELFREGULATORY AGENCIES TO SUBMIT A REPORT WITHIN 45 DAYS ON WHAT STEPS THEY INTEND TO TAKE WITH REGARD TO THE MUNICIPALSECURITIES MARKETS THE CONGRESSMEN SAID THE SUBCOMMITTEE ON TELECOMMUNICATIONS AND FINANCE INTENDS TO SCHEDULE HEARINGS AFTER THE REPORTS ARE COMPLETED REP RON WYDEN D ORE WROTE A SEPARATE LETTER REQUESTING INFORMATION FROM THE SEC AND NASD ON THE MUNICIPALBOND BUSINESS REP WYDEN WHO IS CHAIRMAN OF THE HOUSE SUBCOMMITTEE ON REGULATION BUSINESS OPPORTUNITIES AND ENERGY SAID HE ALSO PLANNED TO HOLD HEARINGS HOWEVER INDIVIDUALS WITH KNOWLEDGE OF THE SEC'S INVESTIGATION SAY IT WILL GO BEYOND WHAT THE CONGRESSMEN HAVE REQUESTED AMONG THE ISSUES THE SEC WILL BE LOOKING AT ARE WHETHER UNDERWRITERS SPLIT FEES WITH EACH OTHER OR PROMISE TO AWARD EACH OTHER BUSINESS WHEN THEY ARE ABLE TO CONTROL BOND ISSUANCES THE INVESTIGATION ALSO WILL GO BEYOND THE NEW JERSEY MATTER WHICH IS STILL BEING INVESTIGATED BY THE SEC'S NEW YORK REGIONAL OFFICE THAT INVESTIGATION BEGAN MORE THAN A MONTH AGO WHEN AN NASD AUDITOR SPOTTED WHAT HE BELIEVED WERE IRREGULAR TRADES BETWEEN MERRILL LYNCH AND ARMACON SECURITIES INC A TINY CLEMENTON NJ BOND DEALER THAT IS HALF OWNED BY JOSEPH SALEMA THE FEDERAL INVESTIGATION LED MR SALEMA TO RESIGN LAST WEEK AS NEW JERSEY GOV JIM FLORIO'S CHIEF OF STAFF HIS LAWYERS HAVE SAID HE DID NOTHING WRONG BRANDON BECKER ACTING DIRECTOR OF THE SEC'S MARKET REGULATION DIVISION DECLINED TO COMMENT ON THE MATTER JOSEPH HARDIMAN PRESIDENT AND CHIEF EXECUTIVE OF THE NASD SAID THE NASD IS PREPARING ITS RESPONSE TO THE REQUEST OFFICIALS OF THE MUNICIPAL SECURITIES RULEMAKING BOARD WEREN'T AVAILABLE TO COMMENT 9306030012 930603 BUSINESS BRIEF GUARANTY NATIONAL CORP FIRM SETS 2NDPERIOD CHARGE TO END REINSURANCE DISPUTE GUARANTY NATIONAL CORP SAID IT WILL TAKE A SECONDQUARTER CHARGE OF 12 MILLION OR ABOUT NINE CENTS A SHARE TO SETTLE A LONGSTANDING REINSURANCE DISPUTE WITH OMAHA INDEMNITY CO GUARANTY AN AUTOMOBILE INSURANCE FIRM BASED IN ENGLEWOOD COLO SAID IT AGREED TO PAY 1750000 TO OMAHA INDEMNITY TO SETTLE A DISPUTE ARISING FROM A REINSURANCE ARRANGEMENT BETWEEN THE TWO COMPANIES IN 1984 AND 1985 FOR THE SECOND QUARTER OF 1992 GUARANTY REPORTED NET INCOME OF 54 MILLION OR 44 CENTS A SHARE 9306030011 930603 POLITICS & POLICY LABOR UNIONS PREPARE LOBBYING EFFORT FOR CLINTON HEALTHCARE OVERHAUL PLAN BY KEVIN G SALWEN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON LABOR UNIONS ARE PREPARING A MASSIVE LOBBYING EFFORT WITH A BUDGET AS LARGE AS 4 MILLION TO SELL PRESIDENT CLINTON'S HEALTHCARE OVERHAUL PLAN TO THEIR MEMBERS AND THE PUBLIC LATER THIS YEAR WHILE DETAILS OF THE HEALTHCARE PROGRAM HAVEN'T BEEN LAID OUT BY THE WHITE HOUSE UNION OFFICIALS FEEL THEY HAVE ENOUGH INFORMATION TO BACK THE PLAN THE AFLCIO HAS PUT TOGETHER A COMPUTER DATABASE OF 287000 ACTIVISTS WHO WOULD BE ASKED TO BRING THE MESSAGE OF HEALTHCARE REFORM TO COWORKERS ON CAPITOL HILL LAWMAKERS CAN EXPECT A BARRAGE OF LETTERS POSTCARDS PHONE CALLS AND PERSONAL VISITS SEVERAL UNIONS ARE CONSIDERING ASSESSING MEMBERS PROBABLY ON A VOLUNTARY BASIS TO PAY FOR THE CAMPAIGN THE NEW YORK AFFILIATE OF THE AMERICAN FEDERATION OF STATE COUNTY AND MUNICIPAL EMPLOYEES ALREADY HAS KICKED IN 100000 ONE UNION OFFICIAL SAID WE HAVE TOLD THE ADMINISTRATION THAT THIS IS SOMETHING THAT'S NEEDED AND WE WILL SUPPORT IT SAID ROBERT MCGLOTTEN THE AFLCIO'S LEGISLATIVE DIRECTOR TO SHOW OUR SUPPORT IS EARNEST WE HAVE SAID WE WILL BE OUT THERE IN THE FIELD AND READY TO HIT THE GROUND RUNNING MR MCGLOTTEN AND OTHERS QUICKLY ADD A CAVEAT THAT THE PLAN NEEDS TO BE PALATABLE TO UNION MEMBERS IF FOR EXAMPLE THE PLAN INCLUDES A HEAVY TAX ON HEALTHCARE BENEFITS WHICH UNIONS STRONGLY OPPOSE THEY WOULD PULL BACK ON THEIR SUPPORT THAT MESSAGE HAS BEEN CLEARLY SENT TO THE ADMINISTRATION IN THE HOPE OF FASHIONING A PLAN THAT THE UNIONS CAN BACK THE UNIONS WILL HEAR MORE TODAY WHEN FIRST LADY HILLARY RODHAM CLINTON WHO HEADS THE PRESIDENT'S HEALTHCARE TASK FORCE MEETS WITH MEMBERS OF THE AFLCIO'S PUBLICPOLICY COMMITTEE SAYS MR MCGLOTTEN WE'RE GEARING UP WE LIKE WHAT WE'VE HEARD SO FAR THE UNIONS ALREADY HAVE SHOWN PRESIDENT CLINTON THAT THEY CAN BE A POTENT POLITICAL FORCE FOR HIM DURING THE 199192 ELECTION CYCLE THE UNIONS DONATED 37 MILLION IN SOFT MONEY THE LARGE CONTRIBUTIONS MADE TO THE DEMOCRATIC PARTY TO UNDERWRITE ACTIVITIES SUCH AS GETOUTTHEVOTE DRIVES ACCORDING TO THE CITIZENS' LOBBY COMMON CAUSE ONE UNION OFFICIAL ARGUED THAT ORGANIZED LABOR HAS BEEN TRYING TO PUSH MR CLINTON ON HEALTHCARE REFORM FOR OVER A YEAR A SERVICE EMPLOYEES INTERNATIONAL UNION POLL LAST SUMMER SHOWED THAT HEALTHCARE REFORM WAS A HOT ISSUE FOR A POLITICAL CAMPAIGN SO UNION OFFICIALS TRIED TO FOCUS MR CLINTON ON HEALTH CARE AS A CAMPAIGN ISSUE THE MORE PROMISES MR CLINTON MADE UNION LEADERS BELIEVED THE MORE HE WOULD BE FORCED TO DEAL WITH THE ISSUE AS PRESIDENT THE UNION OFFICIAL SAID THAT STRATEGY HAS BEEN SUCCESSFUL NOW MR CLINTON WILL BE ABLE TO RELY ON UNIONS FOR SOLID BACKING ORGANIZED LABOR'S PLAN WILL BE TWODIMENSIONAL FIRST UNIONS WILL USE DIRECT MAIL TELEVISION ADVERTISING AND OTHER MEANS TO EXPLAIN THE PLAN TO MEMBERS AND THE PUBLIC URGING THEM TO SUPPORT THE PROGRAM AT THE SAME TIME SERIOUS LOBBYING WILL BEGIN FOCUSING ON FIVE CONGRESSIONAL COMMITTEES THE SENATE FINANCE AND LABOR COMMITTEES THE HOUSE WAYS AND MEANS COMMITTEE THE HOUSE ENERGY AND COMMERCE COMMITTEE AND THE HOUSE EDUCATION AND LABOR COMMITTEE THIS HAS ALL THE SAME BUZZWORDS AS A POLITICAL CAMPAIGN MESSAGE DEVELOPMENT POLLS OF MEMBERS ETC SAID REX HARDESTY THE AFLCIO'S HEAD OF PUBLIC AFFAIRS WHO SENDS PUBLIC RELATIONS OFFICIALS AND STATE UNION LEADERS A DAILY UPDATE FROM AFLCIO HEADQUARTERS THAT UPDATE INCLUDES TALKING POINTS ON HOW TO SELL THE HEALTHCARE PLAN MR HARDESTY ALSO HAS SENT CAMPAIGNPLANNING BOOKS TO 600 UNION LEADERS SAYS MR MCGLOTTEN WE'RE PLANNING AN OUTREACH PROGRAM THAT TOUCHES EVERY AMERICAN AND EVERY ELECTED OFFICIAL SEPARATELY REPUBLICAN NATIONAL COMMITTEE CHAIRMAN HALEY BARBOUR TOLD REPORTERS THAT REPUBLICANS WILL NOT JUST OPPOSE WHAT CLINTON PROPOSES FOR HEALTH CARE HE SAID REPUBLICANS ARE PLANNING AN ALTERNATIVE PROPOSAL THAT IS LIKELY TO INCLUDE MALPRACTICE REVISIONS AND COST CONTROLS TO MAKE HEALTH INSURANCE MORE AFFORDABLE MR BARBOUR ALSO SAID REPUBLICANS ARE LIKELY TO BACK PROVISIONS TO GUARANTEE THAT PEOPLE CAN CARRY HEALTHINSURANCE POLICIES FROM JOB TO JOB AND CHANGES IN UNDERWRITING RULES TO MAKE INSURANCE EASIER TO GET HE ACKNOWLEDGED THAT SUCH PROPOSALS AS WELL AS THE IDEA OF IMPOSING COST CONTROLS ON INSURANCE COULD PUT THE PARTY AT ODDS WITH THE INSURANCE INDUSTRY A TRADITIONAL BASTION OF REPUBLICAN SUPPORT BUT HE SAID DISAGREEMENTS COULD BE LIMITED IN SCOPE AND INTENSITY MR BARBOUR DECLINED TO SUPPORT THE ALTERNATIVE MANAGED COMPETITION HEALTHCARE PLAN BEING CRAFTED BY RHODE ISLAND SEN JOHN CHAFFEE AND OTHER REPUBLICANS SAYING HE DIDN'T KNOW ENOUGH ABOUT ITS DETAILS 9306030010 930603 WHO'S NEWS VIRAL TESTING SYSTEMS CORP VIRAL TESTING SYSTEMS CORP HOUSTON HERMANN MUCKE WAS NAMED TO THE NEW POSITION OF SENIOR VICE PRESIDENT RESEARCH AND DEVELOPMENT OF THIS MEDICAL TESTING CONCERN DR MUCKE IS CURRENTLY DIRECTOR OF RESEARCH AND DEVELOPMENT FOR WALDHEIM PHARMAZEUTIKA/SANOCHEMIA GMBH OF AUSTRIA 9306030009 930603 CORRECTIONS & AMPLIFICATIONS BRIAN T FEARN WAS NAMED TREASURER OF QUANTUM CHEMICAL CORP HIS NAME WAS MISSPELLED IN AN ITEM IN YESTERDAY'S WHO'S NEWS COLUMN 9306030008 930603 TECHNOLOGY VIACOM AT&T PLAN VIDEO SERVICE LAUNCH IN CALIFORNIA REGION NEW YORK VIACOM INC AND AMERICAN TELEPHONE & TELEGRAPH CO AS EXPECTED UNVEILED PLANS TO LAUNCH ADVANCED INTERACTIVE VIDEO SERVICES IN VIACOM'S CABLE SYSTEM IN CASTRO VALLEY CALIF THE CASTRO VALLEY VENTURE WILL ENABLE THE CABLE GIANT AND THE LONGDISTANCE COMPANY TO ANALYZE CONSUMERS' INTEREST IN A VAST ARRAY OF NEW INTERACTIVE SERVICES VIACOM PLANS TO INTRODUCE INTERACTIVE GAMES AS WELL AS INTERACTIVE PROGRAMMING BASED ON THE CABLE NETWORKS IT OWNS INCLUDING MTV VH1 NICKELODEON AND SHOWTIME THE TWO COMPANIES PLAN TO MAKE THEIR FIRST SERVICES AVAILABLE TO AT LEAST 1000 HOMES BY THE SECOND QUARTER OF 1994 WHICH WILL MARK THE START OF AN 18MONTH TEST THE SERVICE MAY EVENTUALLY BE EXPANDED TO 4000 HOMES USING INTERACTIVE TECHNOLOGY DEVELOPED BY AT&T BELL LABORATORIES VIACOM HOPES TO GIVE TO VIEWERS' CABLE CONVERTER BOXES ALL THE FEATURES OF A VIDEOCASSETTE PLAYER INCLUDING THE ABILITY TO WATCH A MOVIE AND STOP IT PAUSE REWIND AND FASTFORWARD USING REMOTE CONTROL DEVICES CUSTOMERS ALSO WILL BE ABLE TO BROWSE THROUGH VIDEO RETAIL CATALOGS AND PLAY VIDEO GAMES WITH OTHER CUSTOMERS IN THE SYSTEM 9306030007 930603 WHO'S NEWS MONY CHIEF ROTH ADDS POST OF CHAIRMAN NEW YORK MICHAEL ROTH PRESIDENT AND CHIEF EXECUTIVE OFFICER OF MUTUAL OF NEW YORK WAS APPOINTED TO THE ADDITIONAL POST OF CHAIRMAN EFFECTIVE JULY 1 MR ROTH 47 YEARS OLD WILL SUCCEED JAMES FARLEY 62 WHO WILL REMAIN ON THE LIFE INSURER'S BOARD OF TRUSTEES MR ROTH HAD BEEN REGARDED AS THE LIKELY SUCCESSOR FOR AT LEAST A YEAR MR FARLEY HAS BEEN CHAIRMAN SINCE 1989 MR ROTH SERVED AS EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER OF PRIMERICA CORP PRIOR TO JOINING MONY BEFORE THAT HE WAS A PARTNER WITH THE ACCOUNTING FIRM COOPERS & LYBRAND HE HOLDS DEGREES FROM CITY COLLEGE OF NEW YORK BOSTON UNIVERSITY LAW SCHOOL AND NEW YORK UNIVERSITY LAW SCHOOL IN RECENT YEARS MONY WHICH HAS 19 BILLION IN ASSETS HAS CUT COSTS AND FOCUSED ON ITS CORE LIFE INSURANCE DISABILITY INSURANCE AND PENSION BUSINESSES IT HAS GOTTEN OUT OF SUCH ENTERPRISES AS MORTGAGE BANKING REINSURANCE AND GROUP HEALTH INSURANCE I DON'T WANT TO BE EVERYTHING TO EVERYBODY MR ROTH SAID THE COMPANY HAS A SIZABLE PORTFOLIO OF TROUBLED MORTGAGES BUT HAS BEEN WORKING THROUGH ITS PROBLEMS SAID BETH MORROW AN ANALYST AT STANDARD & POOR'S CORP 9306030006 930603 ECONOMY WORLD TRADE TALKS SHOW RAY OF HOPE' AS MINISTERS AIM FOR OUTLINE OF A PACT BY DAVID WESSEL STAFF REPORTER OF THE WALL STREET JOURNAL PARIS TRADE MINISTERS FROM THE US EUROPE CANADA AND JAPAN SAID THEY MADE FURTHER PROGRESS IN DISCUSSIONS AIMED AT ENDING THE STALEMATE IN WORLD TRADE TALKS IN A WORLD WHERE ECONOMIC GLOOM IS ALL TOO PREVALENT I BELIEVE A RAY OF HOPE IS EMERGING FROM THESE TALKS SIR LEON BRITTAN THE EUROPEAN COMMUNITY TRADE NEGOTIATOR SAID AT A HASTILY ARRANGED NEWS CONFERENCE HERE SIR LEON TERMED REALISTIC THE TRADE MINISTERS' GOAL OF AGREEING ON AN OUTLINE OF A PACT REGARDING ACCESS TO ONE ANOTHER'S MARKETS IN TIME FOR THE PLANNED SUMMIT OF THE HEADS OF STATE OF THE SEVEN MAJOR INDUSTRIAL COUNTRIES THE SUMMIT WILL BE HELD IN TOKYO EARLY NEXT MONTH EUROPEAN OFFICIALS SAID THEY WERE PARTICULARLY ENCOURAGED BY SIGNS THAT THE JAPANESE ARE PREPARED TO MAKE FURTHER CONCESSIONS JAPANESE OFFICIALS SAID THEY RECENTLY HAVE MADE NEW OFFERS TO REDUCE BARRIERS TO FOREIGN FINANCIALSERVICES FIRMS THOUGH THEY WOULDN'T ELABORATE AND US OFFICIALS WOULDN'T COMMENT JAPAN'S RESTRICTIONS ON IMPORTS OF WOOD PRODUCTS PROCESSED FOODS AND OTHER PRODUCTS ARE A MAJOR IRRITANT TO THE US AND EUROPEAN COUNTRIES WE ARE AT LAST WITHIN STRIKING DISTANCE OF AN OUTLINE OF THE LARGEST MARKETACCESS PACKAGE IN HISTORY US TRADE REPRESENTATIVE MICKEY KANTOR SAID AFTER MEETING FIRST WITH SIR LEON AND THEN FOR 2 1/2 HOURS WITH THE JAPANESE CANADIAN AND EC MINISTERS THE UPBEAT REPORT ON THE PARIS MEETING FOLLOWS A SIMILARLY POSITIVE TONE AT A RECENT MEETING IN TORONTO THE JAPANESE PARTICIPANTS TRADE MINISTER YOSHIRO MORI AND FOREIGN MINISTER KABUN MUTO WEREN'T QUITE AS ENTHUSIASTIC AT YESTERDAY'S NEWS CONFERENCE THERE ARE CERTAIN POINTS THAT ARE YET TO BE FINALIZED AND THERE ARE AREAS WHERE MUCH MORE WORK HAS TO BE DONE MR MUTO SAID SIR LEON SAID THE OFFICIALS AGREED NOT TO SPECIFY THE ISSUES ON WHICH THEY MADE PROGRESS YESTERDAY THE SAME OFFICIALS ARE TO MEET IN TOKYO ON JUNE 23 AND 24 FOR WHAT COULD TURN OUT TO BE A PIVOTAL SESSION ALTHOUGH ANY ANNOUNCEMENT IS CERTAIN TO BE DELAYED UNTIL THE SUMMIT ONCE THE MAJOR COUNTRIES RESOLVE THEIR DIFFERENCES THE NEGOTIATIONS WOULD BE BROADENED TO INCLUDE OTHER COUNTRIES UNDER THE AUSPICES OF THE GENERAL AGREEMENT ON TARIFFS AND TRADE IN THE HOPES OF STRIKING AN AGREEMENT BY THE END OF THE YEAR DESPITE THE EXPRESSIONS OF HARMONY HOWEVER TENSIONS BETWEEN JAPAN AND THE US SURFACED AGAIN YESTERDAY ADDRESSING THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT THE JAPANESE ECONOMICPLANNING MINISTER ATTACKED THE CLINTON ADMINISTRATION'S IDEA OF SETTING CERTAIN NUMERICAL GOALS FOR INCREASED IMPORTS BY JAPAN SOME ARGUE THAT SETTING NUMERICAL TARGETS IS A USEFUL WAY OF REDRESSING CURRENTACCOUNT IMBALANCES BUT IT IS ALMOST IMPOSSIBLE TO RESOLVE THE PROGRAM IN SUCH WAYS SAID THE MINISTER HAJIME FUNADA SUCH A MANAGED TRADE APPROACH HE ARGUED LEADS TO A WAY OF THINKING THAT DENIES THE VERY SYSTEM OF THE MARKET ECONOMY ITSELF MR FUNADA ADDED THAT HISTORICAL AND CULTURAL DIFFERENCES AMONG COUNTRIES SHOULDN'T BE VIEWED AS BARRIERS TO TRADE OR EXCUSES TO ABANDON FREE TRADE IN FAVOR OF GOVERNMENTMANAGED TRADE TREASURY SECRETARY LLOYD BENTSEN SAID NUMERICAL TARGETS ARE SIMPLY A WAY OF MEASURING PROGRESS AND ANOTHER US OFFICIAL DENYING THAT THE US SEEKS TO INTERFERE IN MARKETS SAID WASHINGTON REALLY IS TRYING TO INFLUENCE JAPANESE GOVERNMENT POLICIES IT IS ELEMENTARY ECONOMICS THIS OFFICIAL ARGUED THAT CURRENTACCOUNT TRADE SURPLUSES SUCH AS JAPAN'S SURPLUS WITH THE US REFLECT GOVERNMENT POLICIES ON BUDGETS INTEREST RATES AND PROCUREMENT PRACTICES THE TRADE OFFICIALS MEETING HERE HAVE PUT ASIDE FOR THE MOMENT THE THORNY ISSUE OF EUROPEAN FARM SUBSIDIES RECENT MOVES BY THE EC TO INCREASE AID TO FRENCH FARMERS HAVE LED OFFICIALS FROM SOME OTHER COUNTRIES TO HOPE THAT THE NEW FRENCH GOVERNMENT WILL BE CONCILIATORY SUCH DISAGREEMENTS ASIDE ONE REASON FOR THE RISING OPTIMISM AMONG OFFICIALS HERE IS A SENSE OF URGENCY THEY FEEL TO DO SOMETHING ABOUT THE STRUGGLING WORLD ECONOMY A TRADE BREAKTHROUGH IS ONE THING GOVERNMENTS COULD DO TO STIMULATE GROWTH THAT DOESN'T REQUIRE WIDER GOVERNMENT BUDGET DEFICITS NOTED CANADIAN TRADE MINISTER MICHAEL WILSON 9306030005 930601 CLOSED END FUNDS UNAUDITED NET ASSET VALUES NAV OF CLOSED END FUNDS REPORTED BY THE COMPANIES AS OF FRIDAY'S CLOSE EACH QUOTE INCLUDES THE CLOSING STOCK EXCHANGE PRICE OR DEALERTODEALER ASKED PRICE OF EACH FUND'S SHARES WITH THE PERCENTAGE OF DIFFERENCE FOR EQUITY FUNDS THE FINAL COLUMN SHOWS DIVIDENDS PAID FROM INCOME IN THE LAST 12 MONTHS AS OF THE PRIOR MONTHEND AS A PERCENTAGE OF THE STOCK MARKET PRICE THE FIGURE DOESN'T INCLUDE CAPITAL GAINS DISTRIBUTIONS NNEW YORK STOCK EXCHANGE OOVERTHECOUNTER AAMERICAN MMIDWEST 9306030004 930603 WHO'S NEWS AEQUITRON MEDICAL INC AEQUITRON MEDICAL INC MINNEAPOLIS JAMES B HICKEY JR 39YEAROLD FORMER PRESIDENT OF BAXTER INTERNATIONAL INC'S RESPIRATORY/ANESTHESIA DIVISION WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER OF THIS MAKER OF RESPIRATORY PRODUCTS WHEELCHAIR LIFTS AND AUTOMOBILE HAND CONTROLS THE POST HAS BEEN VACANT SINCE DECEMBER 1992 WHEN CURTIS J OLSON RESIGNED 9306030003 930603 POLITICS & POLICY CLINTON IS EXPECTED TO FREEZE ASSETS OF HAITIAN LEADERS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON IS EXPECTED TO ANNOUNCE PERHAPS AS SOON AS TODAY THAT HE WILL FREEZE THE US FINANCIAL ASSETS AND REVOKE VISAS OF THE LEADERS OF HAITI'S GOVERNMENT AND SOME OF THEIR TOP SUPPORTERS THE ACTIONS ARE INTENDED TO PUT ADDITIONAL PRESSURE ON HAITI'S MILITARY GOVERMENT WHICH LAST MONTH REJECTED A USBACKED PROPOSAL TO SEND AN INTERNATIONAL PEACEKEEPING FORCE TO HAITI TO PREPARE FOR THE EVENTUAL RETURN OF PRESIDENT JEAN BERTRAND ARISTIDE MR ARISTIDE HAITI'S FIRST ELECTED PRESIDENT WAS OUSTED IN A COUP IN SEPTEMBER 1991 MR CLINTON ALSO IS ACTING FOR DOMESTIC POLITICAL REASONS LAST WEEK WHEN HE WAS SCRAMBLING TO SECURE VOTES IN THE HOUSE FOR HIS ECONOMIC PLAN HE PROMISED MEMBERS OF THE HOUSE'S BLACK CAUCUS THAT HE WOULD STIFFEN SANCTIONS AGAINST HAITI YESTERDAY THOUGH SOME OF THOSE CALLING FOR TOUGHER MEASURES AGAINST HAITI'S GOVERNMENT COMPLAINED THAT THE STEPS MR CLINTON IS EXPECTED TO TAKE ARE TOO SOFT AND TOO LATE THE POSSIBILITY OF FREEZING THE US ASSETS OF CERTAIN HAITIANS WAS FIRST SUGGESTED BY THE BUSH ADMINISTRATION IT IS BELIEVED THAT MANY WEALTHY HAITIANS HAVE LONG SINCE MOVED THEIR FUNDS OUT OF THE US MOREOVER THE LIFTING OF VISAS WHICH WOULD PREVENT MEMBERS OF THE HAITIAN ELITE FROM TAKING SHOPPING TRIPS TO THE US OR SENDING THEIR CHILDREN TO PRIVATE SCHOOLS HERE IS CONSIDERED BY SOME CRITICS TO BE MORE OF A NUISANCE THAN A STIFF PENALTY A SPOKESWOMAN FOR REP MAJOR OWENS D NY WHO HEADS THE BLACK CAUCUS'S TASK FORCE ON HAITI SAID THE LAWMAKER WANTS A BROADER EMBARGO SUCH AS A UNITED NATIONS TRADE EMBARGO OF HAITI WITH A FOCUS ON OIL IMPORTS AS WELL AS A BROAD INTERNATIONAL EFFORT TO ISOLATE THE COUNTRY US OFFICIALS SAID THAT THEY ARE PURSUING THOSE STEPS BUT THAT IT IS A DELICATE DIPLOMATIC TASK THAT WILL TAKE TIME CURRENTLY THE ORGANIZATION OF AMERICAN STATES HAS AN EMBARGO AGAINST HAITI BUT SOME EUROPEAN NATIONS DON'T HONOR IT AS A RESULT THE EMBARGO HASN'T HAD A MAJOR IMPACT ON HAITI'S RULERS THOUGH IT HAS MADE LIFE EVEN TOUGHER FOR THE DESPERATELY POOR LAST WEEK UN SPECIAL ENVOY DANTE CAPUTO ALONG WITH US SPECIAL ENVOY LAWRENCE A PEZZULLO MET WITH HAITI'S MILITARY LEADER ARMY COMMANDER GEN RAOUL CEDRAS AND THE MILITARY HIGH COMMAND THE MEETING WAS THE LATEST EFFORT TO NEGOTIATE A SETTLEMENT THAT WOULD INCLUDE THE REMOVAL OF THE MILITARY GOVERNMENT APPOINTMENT OF AN INTERIM GOVERNMENT AND THE FIXING OF A DATE FOR MR ARISTIDE'S RETURN US OFFICIALS PRIVATELY ARE TRYING TO CONVINCE HAITI'S MILITARY RULERS MANY OF WHOM HAVE GROWN RICH WHILE IN POWER THAT THIS WOULD BE THEIR LAST OPPORTUNITY TO LEAVE WITH THEIR WEALTH INTACT AND WITHOUT THE THREAT OF TRIALS AND JAIL THE MILITARY LEADERS HOWEVER HAVE SPURNED THE EFFORT THE REJECTION BY HAITI'S RULERS APPEARED TO BE PART OF A CALCULATED GAMBLE THAT THEY CAN OUTLAST THE INTERNATIONAL COMMUNITY'S PRESSURE MR CLINTON'S EXPECTED STEPS AGAINST THEM ARE MEANT AS A SIGNAL THAT THE PRESSURE WILL BE INCREASED UNTIL THEY AGREE TO RESTORE HAITI'S FLEDGLING DEMOCRACY 9306030002 930603 GENERAL DYNAMICS TO PAY 18 A SHARE TO ITS HOLDERS FALLS CHURCH VA GENERAL DYNAMICS CORP PLANS TO DOLE OUT AN 18ASHARE SPECIAL DISTRIBUTION OF CASH FROM ITS BIG ASSET SALES OF THE LAST TWO YEARS IN THE DEFENSE COMPANY'S SECOND SUCH MOVE IN RECENT MONTHS THE DISTRIBUTION VALUED AT A TOTAL OF 558 MILLION IS PAYABLE JULY 12 TO SHAREHOLDERS OF RECORD JUNE 21 ABOUT ANOTHER 1 BILLION IN CASH REMAINS AVAILABLE FOR DISTRIBUTION STOCK BUYBACKS OR OTHER USES ACCORDING TO RECENT ESTIMATES BY THE COMPANY ANALYSTS HAVE ESTIMATED THAT OF THE CASH AT LEAST ANOTHER 30 A SHARE IS LIKELY TO BE METED OUT THIS YEAR UNDER A TAXORIENTED PLAN OF PARTIAL LIQUIDATION GENERAL DYNAMICS RAISED ITS MONEY BY SELLING OFF ITS LINES OF MISSILES JET FIGHTERS AND OTHER PRODUCTS AS A MUCH SMALLER COMPANY NOW IT STILL MAKES TANKS NUCLEAR SUBMARINES AND SPACELAUNCH ROCKETS IN APRIL IT PAID OUT 20 A SHARE IN A SPECIAL DISTRIBUTION YESTERDAY'S ANNOUNCEMENT CAME AFTER THE MARKETS CLOSED IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING GENERAL DYNAMICS CLOSED AT 95625 UP 375 CENTS THE COMPANY ALSO SAID IT WILL REDEEM ON JULY 15 ALL 454 MILLION OF ITS 5 3/4 EXCHANGEABLE SUBORDINATED DEBENTURES DUE 2011 AT 101725 OF FACE VALUE GENERAL DYNAMICS SAID TRUSTEE CITIBANK NA WILL PAY INTEREST ON THE DEBENTURES DUE JULY 15 IN THE NORMAL MANNER WITH NO INTEREST ACCRUING THEREAFTER 9306030001 930603 MARKETING & MEDIA ADVERTISING AT&T PITCHES HIGHTECH FUTURE THAT WON'T ARRIVE ANYTIME SOON BY KEVIN GOLDMAN IN A NEW SERIES OF RHAPSODIC COMMERCIALS AT&T PROMISES CONSUMERS A NEW WORLD OF WHIZBANG TECHNOLOGY A BABY IS TUCKED IN BY A COOING MOM WHO CHECKS IN FROM A VIDEOPHONE BOOTH CONCERT TICKETS ARE ORDERED BY PUNCHING A FEW BUTTONS AT A BANK CASH MACHINE A FAX IS DISPATCHED FROM A SENDER LOUNGING ON THE BEACH JUST ONE CATCH MOST OF THE SNAZZY SERVICES IN THE NEW ADS BARELY EXIST ON A MASSMARKET BASIS SOME HAVEN'T EVEN REACHED THE TEST STAGE AS YET YESTERDAY AT&T JOINED VIACOM IN A PLANNED VENTURE IN TV PROGRAMMINGONDEMAND INCLUDING WHAT THE COMPANIES DESCRIBE AS A VAST ARRAY OF INTERACTIVITY BUT IT WON'T BEGIN TESTING UNTIL A YEAR FROM NOW AND EVEN THEN THE SERVICE WILL BE LIMITED TO ONLY A FEW THOUSAND HOMES AMERICAN TELEPHONE & TELEGRAPH IS SELLING THE FUTURE AIMING TO REPOSITION WHAT USED TO BE THE TELEPHONE COMPANY AS A VISIONARY HIGHTECH LEADER BUT SOME OBSERVERS SAY THE NEW CAMPAIGN IN THIS AGE OF INSTANT GRATIFICATION RISKS TURNING OFF IMPATIENT CONSUMERS BY STOKING THEIR DESIRES TO SEE THESE NEWFANGLED FEATURES NOW THERE IS ALWAYS A RISK ABOUT SHOWING SOMETHING THAT WON'T COME OUT UNTIL THE NEAR FUTURE CONCEDES JAMES D SPEROS AT&T'S BRANDMANAGEMENT DIRECTOR BUT THE PROMISE IN THE ADS IS VERY CLEAR WE'RE NOT SAYING THE PRODUCTS ARE AVAILABLE THIS VERY SECOND SOMETIMES THAT QUALIFIER SEEMS TO BE DELIVERED IN THE TELEVISION EQUIVALENT OF FINE PRINT IN ONE VIGNETTE FROM A HALFMINUTE AD PRODUCED BY AT&T'S CORPORATE AD AGENCY AYER IN NEW YORK THREE YOUNGSTERS CAVORT IN A LIVING ROOM AND SELECT A SCIENCEFICTION MOVIE TO WATCH ON A BIGSCREEN TELEVISION THE VOICEOVER ACTOR TOM SELLECK SAYS HAVE YOU EVER WATCHED THE MOVIE YOU WANTED WHEN YOU WANTED TO THE PROMISE COMES AT THE END YOU WILL AND THE COMPANY THAT WILL BRING IT TO YOU AT&T OF COURSE THAT ISN'T EXACTLY THE CASE JUST NOW THE NIFTY POTENTIAL OF ORDERING ANY MOVIE AND WATCHING IT ANYTIME COURTESY OF AT&T IS POSSIBLE IF YOU HAPPEN TO LIVE IN ONE OF A FEW THOUSAND HOMES IN SUBURBAN SAN FRANCISCO AND ARE WILLING TO WAIT A FULL YEAR THAT'S THE WHERE AND WHEN OF THE EFFORT THAT AT&T AND VIACOM UNVEILED YESTERDAY AT&T IS ATTEMPTING TO DISTANCE ITSELF FROM THE COMPETITION SAYS WILLIAM WEILBACHER PRESIDENT OF BISMARK CONSULTING BUT THE REAL QUESTION IS HOW MANY PEOPLE YOU TURN OFF IF THE SERVICE ISN'T WIDELY AVAILABLE ALL 10 TECHNOLOGIES SHOWN IN THE ADS WILL BE AVAILABLE WITHIN FIVE YEARS SAYS A COMPANY SPOKESWOMAN THE NEW SERVICES ARE ENTIRELY DOABLE AND THEIR AVAILABILITY ON A MASSMARKET SCALE IS RIGHT AROUND THE CORNER SAYS LINDA URBEN AT&T'S CORPORATE ADVERTISING MANAGER AT&T IS NOW IN THE PROCESS OF LINING UP PARTNERSHIPS TO BRING THE DEVICES TO A MASS AUDIENCE SOME OF THE FEATURES SUCH AS THE FACSIMILEATTHEBEACH WILL BE AT YOUR FINGERTIPS AS SOON AS LATER THIS MONTH WHEN AT&T INTRODUCES A NEW PERSONAL COMMUNICATOR SHE ADDS BUT OTHER FEATURES ARE A LOT FURTHER OFF THE VIDEOONDEMAND NICHE AT&T IS SEEKING WITH VIACOM IS STILL A FEW YEARS AWAY FROM BEING AVAILABLE ON A MASS LEVEL SO IS SITTING IN A LIBRARY IN SAY NEW YORK AND RETRIEVING A PAGE FROM A BOOK IN A LIBRARY IN LONDON SO IS THAT WONDERFUL SYSTEM THAT WILL ENABLE CARS TO ZOOM PAST A TOLL BOOTH HAVING PAID THE FEE VIA AN AT&T SMART CARD ALTHOUGH THAT NIFTY BREAKTHROUGH WILL BE PLACED INTO LIMITED SERVICE LATER THIS YEAR IN ORANGE COUNTY CALIF AT&T'S 40 MILLION CORPORATE AD EFFORT HOWEVER IS AIMED MORE AT SHIFTING THE COMPANY'S CORPORATE IMAGE THAN AT MOVING PRODUCTS AT&T HAD AN IMAGE PROBLEM SAYS JOHN RUF A PARTNER IN THE NEW ENGLAND CONSULTING GROUP WESTPORT CONN IT ISN'T PERCEIVED AS THE INDUSTRY LEADER AS MCI IS NOW THE NEW AD CAMPAIGN IS SHOWING PRACTICAL EVERYDAY SITUATIONS THAT AT&T WILL HELP MAKE EASIER FOR CUSTOMERS IT'S VERY SMART AYER AND AT&T HELD LONG DISCUSSIONS OVER WHAT TECHNOLOGY TO INCLUDE IN THE TELEVISION AND PRINT ADVERTISEMENTS SAYS JAN KEELER AN AYER EXECUTIVE VICE PRESIDENT AND DESPITE THEIR OWN ENTHUSIASM EVEN THEY DECIDED TO SIDELINE SOME EYEPOPPING DEVICES BECAUSE THEY WERE SIMPLY TOO FUTURISTIC VIRTUAL REALITY FOR EXAMPLE WAS REJECTED BECAUSE IT IS DOUBTFUL HOMEOWNERS WILL BE SLAPPING ON THE ODDBALL GOGGLES EN MASSE ANYTIME SOON STRANGELY SILENT IN ALL THIS IS RIVAL MCI COMMUNICATIONS USUALLY AT&T CAN'T MAKE A MOVE OR CLAIM WITHOUT A MISSIVE FROM MCI IN THE FORM OF A RESPONSE AD YESTERDAY AN MCI SPOKESWOMAN SAID WE INTEND TO COMPETE AND WILL BE A PLAYER IN NEW TECHNOLOGIES AND ADVERTISING WILL FOLLOW BUT NOTHING IS ON THE BOARDS YET FROM MCI TRUMPETING ANY NEW GADGETS BUT SHE COULDN'T LET A CONVERSATION END WITHOUT A DIG AT AT&T SPEAKING ABOUT THE AT&T ADS SHOWING THE VIDEOPHONE BOOTH IN WHICH A MOTHER SAYS GOODNIGHT TO A SMILING BUNDLE OF JOY THE MCI SPOKESWOMAN SAID WE HAVE BETTER VIDEO PHONES OUR PICTURES ARE CLEARER WPP GROUP'S OGILVY & MATHER IS COMBINING ITS ATLANTA AND HOUSTON OPERATIONS CREATING A SINGLE ENTITY OGILVY & MATHER SOUTH WITH COMBINED ESTIMATED BILLINGS OF 130 MILLION THE CONSOLIDATION WON'T RESULT IN STAFF REDUCTIONS AN OGILVY SPOKESWOMAN SAID HOUSTON WITH ESTIMATED BILLINGS OF 90 MILLDH ION EMPLOYS ABOUT 100 PEOPLE ATLANTA WITH ESTIMATED BILLINGS OF 40 MILLION EMPLOYS 78 PEOPLE A NEILL CAMERON JR WHO HAD BEEN THE ATLANTA OFFICE'S EXECUTIVE VICE PRESIDENT AND MANAGING DIRECTOR WAS NAMED PRESIDENT OF OGILVY & MATHER SOUTH MR CAMERON IS 47 YEARS OLD JIM HINE EXECUTIVE VICE PRESIDENT AND MANAGING DIRECTOR OF THE HOUSTON OFFICE IS LEAVING THE AGENCY TO WORK ON A STARTUP VENTURE WITH ONE OF THE AGENCY'S CLIENT PROSPECTS I THINK NEILL IS AN EXCELLENT CHOICE SAID MR HINE 54 AND A 17YEAR VETERAN OF THE AGENCY HE'S A PROVEN COMBAT VETERAN THE MEASURE FOLLOWS THE HOUSTON OFFICE'S LOSS LAST WEEK OF THE ELECTRONIC DATA SYSTEMS ACCOUNT EDS IS A UNIT OF GENERAL MOTORS A FAR MORE CRIPPLING LOSS HOWEVER CAME EARLY LAST YEAR WHEN COMPAQ COMPUTER ONE OF THE HOUSTON OFFICE'S EARLIEST CLIENTS MOVED ITS ESTIMATED 30 MILLION BUSINESS OUT THE DOOR AN OGILVY SPOKESWOMAN SAID THE MOVE WOULD ALLOW THE TWO OFFICES TO TEAM UP ON NEW BUSINESS PITCHES AS THEY DID RECENTLY TO WIN THE ESTIMATED 8 MILLION SOUTHERN CO GEORGIA POWER ACCOUNT WHO'S NEWS WILLIAM J WHITEHEAD CHAIRMAN AND CHIEF EXECUTIVE OF THE CANADIAN OPERATIONS OF SAATCHI & SAATCHI'S BACKER SPIELVOGEL BATES WAS NAMED TO THE ADDITIONAL POST OF REGIONAL DIRECTOR OF LATIN AMERICA A NEW POSITION THE AGENCY SAID NAME CHANGE LONG HAYMES & CARR THE WINSTONSALEM NC AGENCY THAT INTERPUBLIC GROUP'S LINTAS ACQUIRED IN OCTOBER 1991 HAS CHANGED ITS NAME TO LONG HAYMES CARR LINTAS 9306030078 930512 AT A CROSSROADS THE INSTANTNEWS AGE LEAVES TIME MAGAZINE SEARCHING FOR A MISSION IMPACT WANED IN MULLER ERA CAN NEW EDITOR RESTORE WEEKLY'S DAYS OF GLORY IT'S THE REPORTING STUPID' BY PATRICK M REILLY STAFF REPORTER OF THE WALL STREET JOURNAL WHEN BILL CLINTON TOOK A COMMANDING LEAD IN THE POLLS OVER GEORGE BUSH A MONTH BEFORE LAST NOVEMBER'S ELECTION TIME MAGAZINE STAFFERS PROPOSED A MAJOR STORY ON HOW MR CLINTON MIGHT GOVERN REPORTING ASSIGNMENTS WERE DOLED OUT FILES GATHERED AND COVER HEADLINES DEBATED BUT AS THE ELECTION DREW NEAR TIME EDITORS NEVER FELT THE WEEK WAS RIGHT TO RUN THE STORY RIVAL NEWSWEEK THOUGHT OTHERWISE USING VIRTUALLY THE SAME WORDS TIME EDITORS HAD DEBATED NEWSWEEK'S OCT 26 COVER READ PRESIDENT CLINTON HOW HE WOULD GOVERN TIME'S COVER THAT WEEK A SKULL ILLUSTRATING FINDINGS FROM THE UNEARTHING OF A FROZEN PREHISTORIC MAN A DISCOVERY MADE A YEAR BEFORE AND REPORTED IN THE PRESS AT THE TIME AS TIME CELEBRATES ITS 70TH ANNIVERSARY THIS YEAR THE MAGAZINE IS FINDING IT HARDER THAN EVER TO LIVE UP TO ITS CATCHY SLOGAN IF IT'S IMPORTANT TO YOU YOU'LL FIND IT IN TIME SINCE ITS FOUNDING BY HENRY LUCE IN 1923 PERHAPS NO OTHER PUBLICATION HAS BEEN SO DOMINANT IN THE AMERICAN IMAGINATION SOCIETY AND POLITICS TIME MONITORED AMERICA'S HEARTBEAT BEFORE TELEVISION AND HAS MARKED EVERY MILESTONE FROM THE RISE OF HITLER TO THE EMERGENCE OF THE PERSONAL COMPUTER BUT THE PAST FEW YEARS HAVE BEEN DIFFICULT DESPITE A SERIES OF EDITORIAL CHANGES EXHAUSTIVE FOCUSGROUP STUDIES AND A SWEEPING REDESIGN LAST YEAR THE MAGAZINE CONTINUES TO GROPE FOR ITS MISSION IN THE AGE OF 24HOURADAY ELECTRONIC NEWS IN TIME'S EFFORT TO REMAIN RELEVANT TO A GENERATION BROUGHT UP TO WATCH TELEVISION SOME CRITICS SAY IT HAS MISTAKENLY ABANDONED THE HARDCHARGING NEWS ROLE THAT MADE IT GREAT TIME WAS ONCE THE VOICE OF THE COUNTRY BUT THE REDESIGN WAS A GREAT MISTAKE MAYBE A DISASTROUS MISTAKE CONTENDS ROGER ROSENBLATT A SENIOR WRITER AT TIME IN THE 1980S THEY SHOULD HAVE STUCK TO THEIR PRIMARY BUSINESS OF GIVING READERS A COMPREHENSIVE VIEW OF THE NEWS TODAY IT'S ALMOST AN ANTINEWSMAGAZINE GENE ROBERTS PROFESSOR OF JOURNALISM AT THE UNIVERSITY OF MARYLAND AND FORMER AWARDWINNING EDITOR OF THE PHILADELPHIA INQUIRER SAYS TIME IS GROPING FOR A MISSION AND A ROLE ONCE TIME HAD A REAL SENSE OF WHAT IT WAS AND WAS TRYING TO DO HE SAYS NOW I AM NOT SURE WHAT IT IS THAT THEY SEE THEMSELVES DOING THAT IS ESSENTIAL OTHER NEWS WEEKLIES HAVE STRUGGLED TO FIND THEIR PLACE IN THE ERA OF ELECTRONIC MEDIA BUT NOWHERE HAVE THE PROBLEMS BEEN MORE ACUTELY FELT THAN AT TIME WE HAD BECOME LARGELY IRRELEVANT IN JOURNALISTIC AND POLITICAL COMMUNITIES IN THIS COUNTRY SAYS STANLEY CLOUD UNTIL RECENTLY TIME'S WASHINGTON BUREAU CHIEF AND NOW A CONTRIBUTING EDITOR WE WEREN'T READ AS WE USED TO BE BY DECISION MAKERS AS OFTEN AND WITH AS MUCH CARE WE ARE TRYING TO CORRECT IT LAST NOVEMBER JASON MCMANUS EDITOR IN CHIEF OF THE TIME INC MAGAZINE GROUP REMOVED MANAGING EDITOR HENRY MULLER WHO HAD BEEN IN HIS JOB SINCE 1987 AND WHO REDESIGNED THE MAGAZINE IN 1992 MR MULLER WAS PROMOTED TO EDITORIAL DIRECTOR UNDER MR MCMANUS A MOVE THAT SURPRISED EVEN MR MULLER I WAS HAVING A GOOD TIME AT TIME HE SAYS I WOULD HAVE KNOWN WHAT TO DO WITH THE MAGAZINE FOR SEVERAL YEARS AND BEEN HAPPY TO DO IT MR MCMANUS SAYS THAT IT WAS HIS DECISION ALONE TO NAME A NEW TOP EDITOR AT TIME AND THAT HE MOVED MR MULLER TO PREPARE FOR SUCCESSION IN CORPORATE EDITORIAL POSITIONS BUT MANY COMPANY INSIDERS AND EDITORS BELIEVE THE MOVE WAS THE RESULT OF MOUNTING CONCERN OVER TIME'S DIRECTION AND WAS ENDORSED BY TIME WARNER INC'S NEW CHIEF EXECUTIVE GERALD R LEVIN A VETERAN OF TIME PRIOR TO ITS 1989 MERGER WITH WARNER COMMUNICATIONS INC MR LEVIN DECLINES TO COMMENT MR MULLER DENIES THAT HIS TRANSFER INDICATES THE COMPANY WAS DISSATISFIED WITH HIS PERFORMANCE TIME WARNER DOESN'T ANSWER FAILURE WITH PROMOTIONS HE SAYS I WOULDN'T BE HERE IF THERE WAS ANY PERCEPTION OF FAILURE AT TIME TIME'S NEW CHIEF JAMES GAINES IS ALREADY SHAKING THINGS UP AS THE 13TH MANAGING EDITOR IN TIME'S HISTORY MR GAINES IS THE FIRST NEVER TO HAVE WORKED THERE AND TO HAVE WORKED AT WASHINGTON POST CO'S NEWSWEEK WHICH HE VIEWS AS A DISTINCT ADVANTAGE I HAVE A FRESH VIEW HE SAYS I HAVE NO PRECONCEIVED NOTION ABOUT HOW TO DO THINGS IN THE 1980S HE RAN TIME'S CELEBRITYDRIVEN PEOPLE AND HAD IMPRESSED SUPERIORS WITH A WEEKLY EDITION OF LIFE PUBLISHED DURING THE PERSIAN GULF WAR IN HIS FIRST ADDRESS TO STAFFERS IN JANUARY MR GAINES CALLED FOR A RETURN TO THE STRENGTHS OF TIME'S PAST GETTING BETTER FACTS STORIES BEFORE THE COMPETITION GETS THEM AND DETAILED ILLUSTRATIVE REPORTING ONE STAFFER RECALLS MR GAINES SAYS I WANT THE MAGAZINE TO BE SOMETHING PEOPLE CAN'T WAIT TO READ HE HAS HIS WORK CUT OUT FOR HIM SINCE THE MERGER THE MAGAZINE HAS SLIPPED IN IMPORTANCE NEXT TO TIME WARNER'S MASSIVE CABLE RECORD AND MOVIE OPERATIONS THAT DIMINISHED STATURE HAS BEEN PAINFULLY CLEAR INSIDE TIME MORALE REACHED A LOW IN SEPTEMBER 1991 WHEN TIME BORE THE BRUNT OF STAFF REDUCTIONS AT THE MAGAZINE GROUP LOSING 39 POSITIONS INCLUDING 19 CORRESPONDENTS MORE RECENTLY TIME'S JOURNALISTIC REPUTATION HAS TAKEN A SHELLACKING IN MARCH READERS OF THE AMERICAN JOURNALISM REVIEW MOSTLY JOURNALISTS WERE ASKED TO VOTE FOR THE BEST MAGAZINE COVERAGE OF THE 1992 PRESIDENTIAL CAMPAIGN NEWSWEEK WAS THE HANDSDOWN WINNER A REPEAT PERFORMANCE FROM 1988 TIME CAME IN THIRD IN A FIELD OF THREE AFTER US NEWS & WORLD REPORT THEN IN APRIL NEWSWEEK WON TWO NATIONAL MAGAZINE AWARDS ONE OF THEM FOR GENERAL EXCELLENCE AMONG THE COUNTRY'S LARGEST MAGAZINES TIME WHICH LAST WON A NATIONAL MAGAZINE AWARD IN 1986 WAS NOT NOMINATED IN ANY CATEGORY MEANWHILE TIME HAS BEEN TWOPUNCHED BY AN ADVERTISING RECESSION THOUGH IT STILL COMMANDS AMONG THE INDUSTRY'S HIGHEST AD RATES ITS NET PROFITS ONCE THE HIGHEST IN THE TIME INC STABLE OF MAGAZINES FELL FROM ABOUT 52 MILLION IN 1989 TO 29 MILLION IN 1991 RECOVERING MODESTLY IN 1992 PEOPLE IS NOW THE PROFIT LEADER AT TIME WARNER'S MAGAZINE GROUP WHICH ALSO INCLUDES SPORTS ILLUSTRATED LIFE FORTUNE AND MONEY THOUGH TIME SAYS ITS GROSS AD REVENUE AND PROFIT PER AD PAGE ARE STILL THE HIGHEST OF THE THREE NEWS WEEKLIES ITS TOTAL AD PAGES SLIPPED IN 1992 FOR THE THIRD STRAIGHT YEAR ONCE THE LEADER IN THE CATEGORY TIME RANKED THIRD THROUGH THE SECOND ISSUE OF MAY TIME WAS DOWN 10 IN AD PAGES ACCORDING TO MEDIA INDUSTRY NEWSLETTER NEWSWEEK AND US NEWS HAD INCREASES TIME ATTRIBUTES THE DIP TO ITS HIGHER AD RATES AND WHAT IT CLAIMS IS RAMPANT RATE CUTTING BY RIVALS TIME'S CIRCULATION STILL LEADS THE PACK AT ABOUT 42 MILLION FAR AHEAD OF NEWSWEEK AND US NEWS WHICH HAVE BEEN STEADY AT ABOUT 32 MILLION AND 23 MILLION RESPECTIVELY FOR THE PAST FIVE YEARS STILL TIME'S CIRCULATION IS DOWN FROM 46 MILLION IN THE LATE 1980S WHEN IT WAS EXPENSIVELY PUMPED UP BY DISCOUNTED OFFERS AND ELECTRONIC GIVEAWAYS SUCH AS TELEPHONES CIRCULATION IMPROVED MODESTLY IN THE SECOND HALF OF 1992 YET NEWSSTAND SALES FELL SLIGHTLY DESPITE THE NEW REDESIGN THAT REDESIGN WAS THE CULMINATION OF SWEEPING CHANGES MR MULLER BEGAN WHEN HE TOOK OVER IN 1987 IN THE MIDST OF AN INEXORABLE SHIFT IN THE BALANCE OF POWER IN THE MEDIA WORLD ON TELEVISION CABLE NEWS NETWORK WAS TURNING INTO AN ESSENTIAL WORLDWIDE MEDIA POWERHOUSE TIME HAD TO HAVE SOMETHING TO OFFER MILLIONS OF READERS WHO COULD TURN ON THE TV AND SEE EVENTS OCCUR AROUND THE WORLD SAYS MR MULLER CHALLENGES TO TIME AND THE NEWS WEEKLIES WERE ALSO COMING FROM THE PRINT MEDIA USA TODAY WAS RAISING THE STANDARD FOR HOW COLOR AND GRAPHICS COULD HELP TELL STORIES TRADITIONAL MAGAZINE STRENGTHS THE PUBLISHING WORLD WAS EXPLODING WITH NEWMAGAZINES KEYED TO READERS' SPECIAL INTERESTS EVEN BIGCITY DAILY NEWSPAPERS FACING DECLINING READERSHIP WERE REINVENTING THEMSELVES STRESSING ANALYSIS AND STRONGER WRITING THE RESULT WAS THE NEWS WEEKLIES SPENT MUCH OF THE PAST DECADE IN FITS OF SOULSEARCHING FEARFUL THEY COULD BECOME OBSOLETE UNLESS THEY MADE CHANGES AT US NEWS & WORLD REPORT CHAIRMAN AND EDITORINCHIEF MORTIMER ZUCKERMAN REFOCUSED THE MAGAZINE ON SERVICE NEWSYOUCANUSE JOURNALISM INCREASED ITS POLITICAL AND BUSINESS COVERAGE AND PLAYED DOWN STORIES ON SOCIAL TRENDS AND ENTERTAINMENT IN 1992 IT CARRIED 160 MORE PAGES OF HARD NEWS THAN TIME ACCORDING TO HALL'S MAGAZINE REPORTS AT NEWSWEEK EDITORINCHIEF RICHARD M SMITH INTRODUCED HIS OWN SUCCESSFUL REDESIGN ADDING A SIMPLER ORGANIZATION OF SIX MAJOR NEWS SECTIONS AND INCREASING THE USE OF GRAPHICS THE MAGAZINE ADDED UNCONVENTIONAL NEWS SECTIONS SUCH AS HEALTH FAMILY AND MORE RECENTLY AGING IT JUICED UP ITS PERISCOPE PAGE WITH NEWSY GOSSIP AND SHORT FUNNY TAKES ON PEOPLE IN THE NEWS AND IT STEERED CLEAR OF PONDEROUS BIGTHEME STORIES INSTEAD STICKING CLOSE TO THE PREVIOUS WEEK'S BIG STORY UNDERGIRDING ITS DECISIONS WAS A 1989 INDEPENDENT STUDY OF ITS FUTURE WHICH SHOWED MR SMITH SAYS THAT READERS WANTED NEWS THAT WENT BEYOND TV AND VALUED OUR NATIONAL NEWS AND ANALYSIS AT TIME MR MULLER SET ABOUT MAKING FUNDAMENTAL CHANGES SOON AFTER HIS ARRIVAL HE BEGAN TO DISMANTLE TIME'S DECADESOLD SYSTEM OF CORRESPONDENTS FILING COPY FROM BUREAUS TO BE REWRITTEN IN NEW YORK INSTEAD HE PUSHED FOR REPORTERS TO WRITE FROM THE FIELD FEELING THEIR WRITING WOULD CARRY MORE IMMEDIACY IN 1988 SOUNDING A NOTE OF URGENCY HE LAUNCHED A REVAMP OF THE MAGAZINE WE HAVE TO REINVENT TIME TO DARE SOMETHING MORE RADICAL THAN THE PERIODIC RENOVATIONS OF TIME THROUGH THE DECADES MR MULLER SAID IN A PRESS RELEASE UNVEILING WHAT HE CALLED A 1990S APPROACH TO NEWSMAGAZINE JOURNALISM HE INTRODUCED SECTIONS SUCH AS TRAVEL AND INTERVIEW AND A MORE DRAMATIC COMBINATION OF PHOTOS AND TEXT FOR BIG STORIES MORE IMPORTANT HE TINKERED WITH THE TRADITIONAL APPROACH TO NEWS THE MAIN TEXT OF TIME'S STORIES HE SAID WILL NOT BE AN OBLIGATORY REGURGITATION OF FAMILIAR MATERIAL THE STORIES WILL DEVOTE MORE SPACE TO IDEAS TO ANALYSIS THEY CAN HAVE A POINT OF VIEW MR MULLER'S HALLMARK WOULD BE TIME'S ATTRACTION TO PURSUING BROAD THEMES AND TRENDS AND SOMETIMES COSMIC QUESTIONS ALL IN PURSUIT OF HIS FAVORITE DICTUM THAT TIME SHOULD GO BEYOND THE NEWS HOW FAR BEYOND A COVER ON EVIL IN 1991 WAS AN ESSAY ON THE NATURE OF EVIL IN WORLD AFFAIRS WHAT DOES SCIENCE TELL US ABOUT GOD EXPLORED SIGNS OF A DIVINE ROLE IN THE CREATION OF THE UNIVERSE EVEN WHEN IT REPORTED IMPORTANT NEWS TIME SOMETIMES SEEMED OFF THE NEWS OF THE MOMENT THE WEEK OF HURRICANE ANDREW ONE OF THE BIGGEST DOMESTIC STORIES OF 1992 TIME FEATURED ON ITS COVER THE FAMINE IN SUBSAHARAN AFRICA TIME GAVE THE US DISASTER RELATIVELY SCANT COVERAGE IN EIGHT PARAGRAPHS WHILE NEWSWEEK RAN A DRAMATIC AND LENGTHY COVER STORY JOHN STACKS TIME'S DEPUTY MANAGING EDITOR SAYS ANDREW HAD ALREADY BEEN HEAVILY COVERED BY THE MEDIA AND TIME DECIDED TO GO BIG WITH THE ORIGINAL REPORTING AND PHOTOGRAPHY ON AFRICA AT NEWSWEEK SUCH DECISIONS WERE SEEN AS PROOF OF ITS HEGEMONY IN THE NEWSWEEKLY FIELD IN A RAHRAH MEMO TO EDITORIAL AND SALES STAFF A WEEK AFTER THE HURRICANE EDITORINCHIEF MR SMITH GLEEFULLY STOKED THE FIRES OF THE CROSSTOWN RIVALRY IN THE LAST FEW MONTHS I'VE RESISTED THE EASY ARGUMENT THAT NEWSWEEK IS THE ONLY TRUE NEWSMAGAZINE ON THE BASIS OF THIS WEEK'S EVIDENCE THAT RESISTANCE IS WEAKENING I'M PROUD THAT WE KNOW WHAT OUR ROLE IS MR MULLER'S HIGHMINDED EDITORIAL PHILOSOPHY DID NOT SIT WELL WITH TIME'S BUSINESS SIDE BY THE LATE 1980S THERE WAS REAL CONCERN HIS APPROACH WAS OFF THE MARK SACRIFICING TIME'S LEADERSHIP POSITION TO AN INCREASINGLY AGGRESSIVE NEWSWEEK THERE WERE SIGNS OF WEAKNESS TIME'S INTERNAL RESEARCH SHOWED THE MEDIAN AGE OF ITS SUBSCRIBERS RISING STEADILY THROUGH THE 1980S TO ABOUT 40 TODAY THE MAGAZINE WASN'T ATTRACTING ENOUGH YOUNGER READERS THE COST OF GETTING AND KEEPING SUBSCRIBERS WAS ALSO SOARING ROBERT MILLER WORLDWIDE PUBLISHER OF TIME IN THE LATE 1980S AND CURRENTLY PRESIDENT OF TIME INC VENTURES WAS SO CONCERNED THAT HE HIRED OUTSIDE CONSULTANTS AFTER MONTHS OF PHONE SURVEYS AND FOCUS GROUPS THE RESEARCH RESULTS SEEMED TO CONTRADICT MR MULLER'S APPROACH OF IDEAS AND ANALYSIS OVER SIMPLE REPORTING THE STUDIES SHOWED READERS WANTED HARD NEWSECONOMIC POLITICAL AND INTERNATIONAL NEWS MR MILLER SAYS IT WAS COLLECTIVELY MANAGEMENT'S INTERPRETATION THAT THERE SHOULD BE A REDEDICATION AND FOCUS ON THAT IT ACTUALLY GAVE US CONFIDENCE THAT TIME COULD BE TIME CONCENTRATING ON WHAT IT DID BEST BY LATE 1989 MR MILLER HAD CUT BACK TIME'S TOWERING COSTS BY LOWERING THE COSTLYTOMAINTAIN CIRCULATION LEVEL FROM 46 MILLION TO 4 MILLION BUT HE WAS ALSO LOBBYING HARD FOR EDITORIAL CHANGES WHILE MR MILLER DECLINES TO COMMENT ON MR MULLER'S WORK INTERNALLY HE WAS HARSHLY CRITICAL COLLEAGUES SAY THE ATTACK ON HENRY MULLER WAS COMING FROM THE BUSINESS SIDE AND THE BUSINESS SIDE WAS RIGHT SAYS ONE OF TIME INC'S TOP EDITORS THE PROBLEM WAS THE MAGAZINE WAS OFF THE NEWS NOT SHARP NOT CRISP WALTER SHAPIRO A FORMER TIME SENIOR WRITER WHO IS NOW ESQUIRE'S WHITE HOUSE CORRESPONDENT AND STILL CONTRIBUTES TO TIME RECALLS THAT WHEN HE LEFT NEWSWEEK FOR TIME IN 1987 HE WAS ASTONISHED BY HOW FAR IN ADVANCE TIME DECIDED WHAT WAS NEWS AT NEWSWEEK TOP EDITORS REGULARLY RIPPED UP STORY LISTS FROM MONDAY OR TUESDAY AND SCATTERED WRITERS TO COVER LATEBREAKING STORIES AT TIME MR SHAPIRO SAYS THE MONDAY OR TUESDAY STORY LIST DIDN'T CHANGE MUCH AS THE WEEK WENT ON SOME MAJOR POLITICAL STORIES WERE APPROVED BY EDITORS 10 DAYS IN ADVANCE THE NEWSWEEK APPROACH CAN BE TAKEN TO RIDICULOUS DEGREES MR SHAPIRO SAYS BUT OF THE TWO IT'S CERTAINLY BETTER FOR A NEWSMAGAZINE TO BE WILLING TO MAKE ENORMOUS CHANGES AT THE LAST MINUTE THAN BE LOCKED IN CONCRETE BY LATE 1990 URGED ON BY MR MILLER MR MCMANUS THE TIME INC EDITOR IN CHIEF HAD CONVENED AN INHOUSE COMMITTEE OF WRITERS AND EDITORS TO INVESTIGATE THE FUTURE OF TIME AND OF THE NEWSWEEKLY IDEA ITSELF THE REPORT OF THE TASK FORCE WAS NEVER RELEASED NOT EVEN INTERNALLY BUT INSIDERS SAY IT HAMMERED AT THE STRUCTURAL PROBLEMS OF TIME IT SAID TIME TAKES ITSELF TOO SERIOUSLY IT NEEDS LESS PONTIFICATING AND WASN'T REACHING AN AUDIENCE THAT FOUND IT COMPELLING OR OF URGENCY OR IMPORT SAYS ONE EXECUTIVE WHILE ADMITTING THE TASK FORCE WAS CRITICAL OF SOME OF HIS INNOVATIONS MR MULLER SAYS THAT IT DIDN'T SAY TURN BACK THE CLOCK TURN TIME INTO A REWRITE MAGAZINE THE FINDINGS WERE AN ENDORSEMENT OF WHERE WE WERE ALREADY HEADING HE ADDS AS THE COMMISSION WAS STILL MEETING IN EARLY 1991 MR MULLER WAS MOVING SEPARATELY ON HIS OWN REDESIGN PLAN BY THE TIME THE COMMISSION READIED ITS REPORT AT MIDYEAR MR MULLER HAD ESTABLISHED AN OFFSITE SAFE HOUSE ON MANHATTAN'S UPPER EAST SIDE WHERE DESIGN WORK WAS DONE AND BY AUGUST 1991 HE SHOWED A PROTOTYPE TO MR MCMANUS GONE WAS THE WEEKLY DEPARTMENT FORMAT TIME INVENTEDWORLD NATION RELIGION AND SO ON INSTEAD MR MULLER PROPOSED THREE DISTINCT SECTIONS A TIGHT RECAP OF THE WEEK'S NEWS AT THE FRONT OF THE BOOK FOLLOWED BY A WELL OF FEATURE STORIES AND FINALLY AN ARTS AND REVIEWS SECTION MR MULLER BELIEVED THE DESIGN WOULD PERMIT TIME TO GIVE STORIES THE SPACE THEY NEEDED RATHER THAN DICING UP NEWS INTO CONFINING DEPARTMENTS THERE WAS A DISTINCT FEELING AMONG SOME OTHERS THOUGH THAT THE MAGAZINE WAS ABANDONING ITS FRANCHISE THAT THE NEW THREESECTION TIME WAS TOO SIMILAR TO OTHER FEATURE MAGAZINES MR SHAPIRO CONTENDS THE REDESIGN WAS JUST PART OF THE PROBLEM THE LACK OF IMAGINATION IN PRESENTING THE MAGAZINE IS FAR MORE IMPORTANT HE SAYS TIME WOULD HAVE BEEN A BORING MAGAZINE IN 1991 AND 1992 NO MATTER WHAT IT LOOKED LIKE MR MULLER DEFENDS THE DIRECTION THE MAGAZINE TOOK UNDER HIM INCLUDING ITS 1992 PRESIDENTIAL CAMPAIGN COVERAGE AND THE FAILURE TO RUN THE PLANNED COVER ON HOW MR CLINTON WOULD GOVERN HE SAYS THAT THE STORY WASN'T GOOD ENOUGH TO RUN AND THAT TIME DID A MUCH BETTER JOB WITH A POSTELECTION STORY TOP MAGAZINE EDITORS JUDGING THE NATIONAL AWARDS TOOK A DIFFERENT VIEW THEY HONORED NEWSWEEK IN THE SINGLETOPIC ISSUE CATEGORY FOR ITS SPECIAL ELECTION ISSUE ENTITLED HOW HE WON THE UNTOLD STORY OF BILL CLINTON'S TRIUMPH YET THE TIME COVER STORY ON THE PREHISTORIC MAN THAT RAN THE WEEK NEWSWEEK WENT WITH THE CLINTON COVER SOLD EXTREMELY WELL NEWSSTAND SALES WERE ABOUT 375000 COPIES WELL ABOVE THE AVERAGE OF ABOUT 200000 NEWSWEEK ALSO DID WELL BY STICKING TO POLITICS NEWSSTAND SALES OF THE CLINTON COVER WERE ABOUT 210000 COPIES COMPARED WITH AN AVERAGE OF ABOUT 180000 BUT WHILE NEWSSTAND SALES ARE WATCHED CLOSELY BY ALL MAGAZINES THEY REPRESENT LESS THAN 10 OF CIRCULATION AT NEWSWEEK AND TIME MR GAINES HAS BEGUN TO TINKER WITH AND LOOSEN UP MR MULLER'S DESIGN AND CONCEPT TIME PLANS TO REPLACE THE GOSSIPY GRAPEVINE NEWS COLUMN WITH A COLUMN CALLED INFORMED SOURCES WHILE ALSO CUTTING BACK THE WEEKLY NEWS RECAP TO FIVE PAGES MR GAINES IS ADDING SHORTER PIECES INSIDE TIME SEEMINGLY A PARTIAL RETURN TO THE DEPARTMENTALIZED APPROACH MR MULLER THREW OUT LATER IN THE SUMMER MR GAINES A CLASSICALLY TRAINED PIANIST WILL RENAME THE BACKOFTHEBOOK REVIEWS SECTION AND ADD MORE CULTURAL COVERAGE MR GAINES HAS ALREADY IMPRESSED STAFFERS WITH HIS APPROACH WHEN FORMER TENNIS STAR ARTHUR ASHE DIED OF AIDS LATE ON A SATURDAY AFTERNOON IN FEBRUARY TIME HAD ALREADY CLOSED ITS ISSUE FOR THE WEEK AND WAS ONLY HOURS AWAY FROM GOING TO PRESS MR GAINES GOT WORD THAT EVENING AFTER ARRIVING AT HIS MANHATTAN HOME FROM DINNER OUT WITH HIS WIFE WITHIN THE HOUR HE ARRIVED AT TIME'S MIDTOWN OFFICES WITH TWO COLLEAGUES RIPPED OUT THE BACKPAGE ESSAY AND BEGAN REPORTING AND WRITING AN ELOQUENT TRIBUTE TO THE ACTIVIST ATHLETE WORKING WELL PAST MIDNIGHT TIME'S LAST THREE COVERS BEFORE THIS WEEKON DINOSAURS THE DEATHS IN WACO TEXAS AND THE ASCENT OF HILLARY RODHAM CLINTON HAVE BEEN ITS THREE BESTSELLING ISSUES ON NEWSSTANDS SO FAR THIS YEAR WHILE MOST OF TIME INC'S TOP EXECUTIVES ARE WATCHING SUCH SALES NUMBERS CLOSELY MR GAINES IS TAKING A LONGER VIEW TWO YEARS FROM NOW HE SAYS HE HOPES THE MAGAZINE'S READERS WILL FEEL THEY CAN'T UNDERSTAND THEIR WORLD PRECISELY WITHOUT READING TIME HE ADDS IT'S CERTAINLY NOT MY GOAL TO MAINTAIN THE STATUS QUO TIME AND THE TIMES ASK FOR CHANGE SEE RELATED LETTERS LETTERS TO THE EDITOR YOU SWUNG A MEAT AX AT TIME WSJ JUNE 3 1993 9305120043 YY93 MM06 9306030043 930511 ECONOMY WHICH GAUGE TO USE DELAYS A TREASURY CONFIRMATION WASHINGTON A DISPUTE OVER THE PROPER WAY TO GAUGE THE IMPACT OF PRESIDENT CLINTON'S TAX PROPOSALS IS HOLDING UP THE CONFIRMATION OF THE NOMINEE FOR THE TREASURY'S TOP TAX POSITION LESLIE SAMUELS SENATE REPUBLICANS ARE BLOCKING WHAT WOULD OTHERWISE BE A ROUTINE CONFIRMATION BECAUSE THEY WANT THE TREASURY TO SUPPLY MORE DATA ON HOW THE TAXES WOULD HIT VARIOUS INCOME GROUPS THE TREASURY AS IT HAS FOR NEARLY TWO DECADES ANALYZED THE PROPOSALS USING A CONCEPT KNOWN AS FAMILY ECONOMIC INCOME A THEORETICAL CONSTRUCT THAT INCLUDES CASH INCOME PLUS SUCH THINGS AS EMPLOYERPROVIDED FRINGE BENEFITS AND THE INCREASE IN THE VALUE OF A FAMILY'S INVESTMENTS WHETHER OR NOT THEY ARE SOLD IN A GIVEN YEAR REPUBLICANS LED BY SEN WILLIAM ROTH OF DELAWARE AND REP DICK ARMEY OF TEXAS ARE DEMANDING THAT THE TREASURY PROVIDE A TABLE BASED ON THE MORE FAMILIAR ADJUSTED GROSS INCOME A LINE THAT APPEARS ON EVERY TAX RETURN SUCH AN ANALYSIS WOULD WEAKEN MR CLINTON'S CLAIM THAT 70 OF HIS PROPOSED TAXES WOULD FALL ON THOSE WITH INCOMES ABOVE 100000 A YEAR IN OTHER CONTEXTS MR ARMEY AN ECONOMIST HIMSELF HAS CRITICIZED THE CONGRESSIONAL BUDGET OFFICE FOR RELYING ON INTERNAL REVENUE SERVICE DEFINITIONS IN MAKING SUCH DISTRIBUTIONAL ANALYSES THESE DATA REFLECT PUBLIC POLICY DECISIONS WHICH ARE NOT INTENDED FOR THE ACCURATE MEASUREMENT OF INCOME MR ARMEY WROTE IN APRIL 1991 IRS RULES DON'T NECESSARILY DETERMINE WHETHER A COMPONENT OF INCOME HAS ECONOMIC VALUE OR COMPRISES ECONOMIC INCOME THE DISPUTE LARGELY INVOLVES A DEBATING POINT IT HAS NOTHING TO DO WITH WHAT INCOME THE GOVERNMENT ACTUALLY TAXES SEE RELATED LETTER LETTERS TO THE EDITOR LET'S USE TAX TERMS AMERICANS UNDERSTAND WSJ JUNE 3 1993 9305110117 YY93 MM06 9306030038 930503 POLITICS & POLICY PEROT THROWS STONES AT CLINTON'S TAX PROPOSALS FROM HIS GLASS HOUSE OF EVEN LARGER INCREASES BY GERALD F SEIB STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ROSS PEROT BOUGHT A COSTLY BLOCK OF TELEVISION TIME LAST WEEK TO DELIVER THIS WARNING THE AMERICAN PEOPLE ARE ABOUT TO GET HIT WITH THE LARGEST TAX INCREASE IN THE HISTORY OF THIS COUNTRY WHAT MR PEROT DIDN'T SAY WAS THAT HE HIMSELF HAS PROPOSED TAX INCREASES EVEN LARGER THAN WHAT PRESIDENT CLINTON HAS SUGGESTED SO FAR AND HE WOULD RAISE LESS FROM THE WEALTHY AND MORE FROM THE MIDDLE AND LOWERMIDDLE CLASSES THE ECONOMIC PROGRAM MR PEROT PRESENTED DURING HIS INDEPENDENT PRESIDENTIAL CAMPAIGN LAST YEAR CALLED FOR NET TAX INCREASES OF ABOUT 320 BILLION OVER THE NEXT FIVE YEARS SOME 50 BILLION MORE THAN THE CURRENT CLINTON TAX PROGRAM THE CLINTON PLAN WHICH MR PEROT IS URGING HIS FOLLOWERS TO OPPOSE BY PLACING PROTEST CALLS TO THE WHITE HOUSE AND CONGRESS CALLS FOR TAX INCREASES OF ABOUT 270 BILLION OVER THE SAME TIME PERIOD UPON CLOSER EXAMINATION MR PEROT'S TAX PLAN WHILE LARGER ACTUALLY IS STRIKINGLY SIMILAR TO THE CLINTON PLAN IN MANY RESPECTS BOTH WOULD RAISE THE TAX RATE ON THE RICHEST AMERICANS BOTH WOULD TAX MORE SOCIAL SECURITY BENEFITS AND BOTH HAVE SIGNIFICANT ENERGY TAXES BOTH WOULD SPEND SOME OF THAT REVENUE BY GIVING INVESTMENT TAX CREDITS TO BUSINESSES BUT THERE IS A DIFFERENCE MR PEROT LARGELY BECAUSE OF AN ENORMOUS GASOLINE TAX AND TAXES ON HEALTH BENEFITS CLEARLY WOULD HIT THE MIDDLE CLASS MORE SAYS STEVE BELL A MANAGING DIRECTOR AT SALOMON BROTHERS' WASHINGTON OFFICE AND THERE'S A REASON FOR THAT THAT'S WHERE MOST OF THE MONEY IS THAT'S THE UNHAPPY TRUTH ABOUT DEFICIT REDUCTION WHICH THE PEROT PLAN TACITLY CONFIRMS MR PEROT ACKNOWLEDGES THAT HE WOULD BE A BIG TAXER AFTER WARNING VIEWERS OF THE COMING TAX INCREASE IN A PAID HALFHOUR BROADCAST ON NBC LAST WEEK THE TEXAS BILLIONAIRE DECLARED I FEEL A GREAT SENSE OF RESPONSIBILITY FOR THIS TAX INCREASE BECAUSE DURING THE CAMPAIGN I STRESSED THE NEED TO RAISE TAXES TO BALANCE THE BUDGET TO PAY OFF THE DEBT TO STOP SPENDING OUR CHILDREN'S MONEY THE REAL PROBLEM WITH THE CLINTON TAX PLAN MR PEROT ARGUES IS THAT THE REVENUE WON'T GO STRICTLY TO REDUCE THE FEDERAL DEFICIT BECAUSE MR CLINTON ISN'T CUTTING DEEPLY ENOUGH INTO SPENDING PROGRAMS HE COMPLAINS THE TAX RECEIPTS WILL ONLY PUSH THE DEFICIT DOWN FOR THE NEXT FEW YEARS BEFORE IT BEGINS SHOOTING BACK UP AGAIN THE AMERICAN PEOPLE ARE ONLY WILLING TO SACRIFICE AND PAY MORE TAXES TO CLEAN UP THE MESS WASHINGTON HAS CREATED FOR OUR CHILDREN AND OUR GRANDCHILDREN HE MAINTAINS IN HIS TV ADDRESS HE CALLED ON PEOPLE TO SAY NO TO A TAX INCREASE UNTIL WE GET REAL GOVERNMENT REFORM AND A SOLID PROGRAM TO PAY OUR DEBT HE ALSO ARGUES THAT THE CLINTON TAX BILL WILL BE MUCH HIGHER ONCE THE PRESIDENT REVEALS WHAT TAXES HE WILL IMPOSE TO PAY FOR HIS BIG OVERHAUL OF THE HEALTHCARE SYSTEM WHICH IS TO PROVIDE COVERAGE TO 37 MILLION UNINSURED PEOPLE INDEED IT IS LIKELY THAT WITH THOSE ADDITIONAL TAXES THE TOTAL CLINTON TAX BITE WILL BECOME BIGGER THAN MR PEROT'S OVER TIME MR PEROT WON'T SAY WHICH OF MR CLINTON'S TAXES HE OPPOSES LEAVING SOME TO SUGGEST HIS RHETORIC IS MORE POLITICALLY THAN ECONOMICALLY DRIVEN AND SOME OF MR PEROT'S RHETORIC IS CLEARLY MISLEADING HE HAS BEEN SUGGESTING FALSELY THAT PRESIDENT CLINTON HAS DECIDED TO PAY FOR HIS HEALTH PLAN BY IMPOSING A 5 VALUEADDED TAX THAT WILL HIT EVERYBODY IN FACT THE VALUEADDED TAX IS ONLY ONE OF MANY OPTIONS BEING WEIGHED AND MANY PRESIDENTIAL ADVISERS THINK IT WILL NEVER BE ENACTED WHAT'S MORE THE FINE PRINT OF THE PEROT PLAN SUGGESTS THAT HAD HE BECOME PRESIDENT HE TOO WOULD HAVE IMPOSED ADDITIONAL TAXES OF SOME KIND TO PAY FOR HEALTH BENEFITS FOR MILLIONS OF UNINSURED PEOPLE HIS PROGRAM CALLED FOR A BASIC BENEFIT PACKAGE FOR UNIVERSAL COVERAGE WITHOUT SPELLING OUT HOW THOSE HEALTH BENEFITS WOULD BE PAID FOR AND WHILE MR PEROT LAMBASTES PRESIDENT CLINTON FOR SIMPLY ASSUMING THAT HE WILL BE ABLE TO BRING DOWN THE DEFICIT OVER TIME BY PUTTING A LID ON THE GOVERNMENT'S HEALTHCARE COSTS THE PEROT PLAN MAKES A SIMILAR ASSUMPTION ONE BIG REASON MR PEROT'S PLAN WOULD ELIMINATE THE DEFICIT IS THAT IT ENVISIONS A HUGE 1414 BILLION IN BUDGET SAVINGS THROUGH COST CONTAINMENT IN MEDICARE AND MEDICAID OVER THE NEXT FIVE YEARS BUT IT DOESN'T SPECIFY WHERE THOSE SAVINGS WOULD COME FROM SAYING ONLY THAT BOTH A SHORTTERM AND LONGTERM STRATEGY MUST BE ADOPTED HOPEDFOR CUTS IN HEALTH COSTS ARE THE MIRROR OR THE SMOKE OF BOTH THE PEROT AND CLINTON DEFICITREDUCTION PLANS SAYS GARY ROBBINS A SENIOR FELLOW AT THE NATIONAL CENTER FOR POLICY ALTERNATIVES IN MANY WAYS THE PEROT TAX PLAN WOULD BE A MODEL IN POLITICAL COURAGE IF IT WERE EVER REALLY PROPOSED FOR IT ATTACKS MANY POLITICAL SACRED COWS IN A WAY YOU HAVE TO TAKE YOUR HAT OFF TO HIM FOR GOING AFTER POWERFUL GROUPS SAYS ROBERT REISCHAUER HEAD OF THE CONGRESSIONAL BUDGET OFFICE BUT THAT ALSO MEANS THAT THE PEROT PLAN WOULD BE DEEPLY UNPOPULAR WITH SOME OF THE SAME PEOPLE MR PEROT IS NOW ENCOURAGING TO BLOCK CLINTON'S PROGRAM THE CENTERPIECE OF THE PEROT TAX PLAN WAS A BIG GASOLINE TAX HE PROPOSED RAISING THE FEDERAL TAX ON GASOLINE BY 10 CENTS A GALLON IN EACH OF THE NEXT FIVE YEARS AN INCREASE THAT WOULD BRING IN ABOUT 1578 BILLION BY 1998 THAT TAX DWARFS THE BROADBASED ENERGY TAX MR CLINTON HAS PROPOSED WHICH WOULD TAX ALL FORMS OF ENERGY ACCORDING TO THE AMOUNT OF BTUS OR UNITS OF HEAT THAT THEY PRODUCE MR CLINTON ENVISIONS COLLECTING JUST 728 BILLION OVER FIVE YEARS WITH HIS ENERGY TAX LESS THAN HALF THE REVENUE OF THE PEROT GAS TAX A GASOLINE TAX IS A POPULAR IDEA WITH MANY ANALYSTS NOT ONLY BECAUSE IT WOULD RAISE LOTS OF MONEY BUT BECAUSE IT ALSO WOULD CONSERVE ENERGY AND REDUCE DEPENDENCE ON FOREIGN OIL AND ENVIRONMENTAL DAMAGE BUT A GASOLINE TAX ALSO IS CONSIDERED A HIGHLY REGRESSIVE TAX BECAUSE IT WOULD HIT LOWERINCOME PEOPLE JUST AS HARD AS THE WEALTHY MR PEROT'S NEXTBIGGEST REVENUE EARNER WOULD BE A TAX ON SOME EMPLOYERPAID HEALTH INSURANCE BENEFITS HE WOULD TAX AS INCOME PREMIUMS OVER 135 A MONTH FOR INDIVIDUAL COVERAGE OR 335 A MONTH FOR FAMILY COVERAGE THAT TAX WOULD PULL IN 571 BILLION OVER FIVE YEARS IN ADDITION MR PEROT PROPOSED TAXING 85 OF SOCIAL SECURITY BENEFITS FOR HIGHERINCOME RECIPIENTS RATHER THAN THE CURRENT 50 PRECISELY THE SAME PROPOSAL MR CLINTON HAS MADE THE TREASURY ESTIMATES THAT WOULD RAISE 232 BILLION OVER FIVE YEARS TAXES ON THE WEALTHY WOULD GO UP UNDER BOTH PLANS BUT THERE IS A DRAMATIC DIFFERENCE OVER HOW MUCH MR PEROT WOULD RAISE THE TOP MARGINAL TAX RATE TO 33 FROM 31 BRINGING IN 332 BILLION THE PRESIDENT PROPOSES RAISING THE TOP RATE TO 36 AND IMPOSING A SURTAX AND OTHER NEW TAXES RAISING ALMOST 125 BILLION MR CLINTON'S TOP TAX RATE WOULD START WITH COUPLES WITH TAXABLE INCOME OF 140000 OR MORE MR PEROT'S WOULD KICK IN AT 89000 THE PRESIDENT WOULD ALSO PULL IN MORE TAXES FROM CORPORATIONS THAN WOULD MR PEROT THE CLINTON PLAN CALLS FOR GETTING ROUGHLY 29 BILLION OVER FIVE YEARS BY RAISING THE TAX RATE ON LARGE CORPORATIONS TO 36 MR PEROT DOESN'T PROPOSE A CHANGE IN THE CORPORATE TAX RATE BUT IN MR PEROT'S VIEW THE TRULY SIGNIFICANT DIFFERENCE IN THE PLANS IS THAT HE WOULD SLICE MUCH DEEPER INTO SPENDING WHILE COLLECTING HIGHER TAXES IN THE CAMPAIGN MR PEROT PROMISED 108 BILLION IN SAVINGS OVER FIVE YEARS BY SIMPLY IMPOSING A 5 CUT IN SPENDING ON DOMESTIC DISCRETIONARY PROGRAMS AND AN ACROSSTHEBOARD 10 CUT IN ADMINISTRATIVE COSTS BUT HE DIDN'T SPECIFY WHERE THE CUTS WOULD COME WHICH IS THE SORT OF TACTIC HE NOW CRITICIZES MR CLINTON FOR USING IN CRITIQUING MR CLINTON'S DEFENSE BUDGET LAST WEEK MR PEROT ASSERTED THEY JUST PULL THE NUMBER OUT OF AIR AND NOW THEY'RE TRYING TO PUT IT TOGETHER IN A RATIONAL WAY THAT'S NOT THE WAY YOU DO BUSINESS FOLKS YOU PUT TOGETHER YOUR PLAN AND THEN YOU FIGURE OUT YOUR NUMBERS WHAT PEROT WOULD DO WHAT CLINTON WOULD DO SEE RELATED LETTER LETTERS TO THE EDITOR STONE THROWERS WSJ JUNE 3 1993 9305030132 YY93 MM06 9306030077 930428 REVIEW & OUTLOOK EDITORIAL REAL CHANGE BILL CLINTON COULD USE A BIG PUBLIC SUCCESS ABOUT NOW THERE ARE RUMBLINGS THROUGH THE POLITICAL WORLD THAT HE MAY DECIDE TO BOMB THE SERBIANS THE MERITS OF THAT ASIDE WE HAVE A MORE POPULAR IDEA BOMB CONGRESS BUT HE WON'T NOT AT THIS POINT OF LOW EBB THAT'S TOO BAD BECAUSE TWO IDEAS TERM LIMITS AND THE LINE ITEM VETO WOULD DIRECTLY ATTACK GRIDLOCK AND SPENDING BOTH STRATEGIES ARE POPULAR WITH THE PUBLIC AND MERELY AWAIT LEADERSHIP FROM A NATIONAL FIGURE WHO STANDS FOR CHANGE INSTEAD MR CLINTON THIS WEEK WILL PROPOSE A CAMPAIGN FINANCE REFORM PLAN THAT WOULD USE TAX DOLLARS TO FINANCE CONGRESSIONAL ELECTIONS BOWING TO PRESSURE FROM HOUSE DEMOCRATS HE HAS ABANDONED PLANS TO SHARPLY REIN IN PAC MONEY 90 OF WHICH FLOWS TO CONGRESSIONAL INCUMBENTS AND VIRTUALLY ENSURES THEIR REELECTION FROM WHAT WE'VE SEEN IT'S A REFORM THAT IS BY THE INCUMBENTS FOR THE INCUMBENTS AND BENEFITS ONLY INCUMBENTS POLLS SUGGEST THAT THE PUBLIC IS SUSPICIOUS THAT INCUMBENTS WILL TURN PUBLIC FUNDING TO THEIR OWN ADVANTAGE BUT PEOPLE OVERWHELMINGLY SUPPORT ONE REFORM THAT POLITICIANS SHRINK FROM THE WAY DRACULA RECOILED FROM THE CROSS TERM LIMITS UNTIL NOW ONLY A THEORETICAL CASE COULD BE MADE FOR ABORNING TERM LIMITS MOVEMENT BUT NOW THERE'S REALWORLD EVIDENCE THAT TERM LIMITS ARE BRINGING NEW BLOOD INTO POLITICS CALIFORNIANS VOTED IN STRICT TERM LIMITS FOR THEIR LEGISLATURE IN 1990 THE FIRST MEMBERS FORCED INTO RETIREMENT DON'T LEAVE UNTIL LATE 1996 BUT TERM LIMITS AND A RATIONAL REDISTRICTING MAP PROMPTED MORE THAN A FOURTH OF THE STATE ASSEMBLY TO RETIRE IN 1992 THE RESULTING COMPETITIVE FREEFORALL MEANT THAT 26 OUT OF 80 ASSEMBLY DISTRICTS ELECTED NEW MEMBERS THEY ARE DIFFERENT IN MANY WAYS FROM THE PEOPLE THEY REPLACED AND THE CHANGE IS IN LARGE PART DUE TO TERM LIMITS AN ANALYSIS OF THE NEW MEMBERS BY CHARLES PRICE OF CHICO STATE UNIVERSITY SHOWS THAT THE PROFUSION OF OPEN SEATS ALLOWED WOMEN AND MINORITIES A CHANCE AT POWER ALMOST HALF THE NEW MEMBERS ARE WOMEN AND MORE THAN A FIFTH ARE HISPANIC VOTERS ELECTED THE FIRST ASIANAMERICAN IN 12 YEARS A REPUBLICAN IN ADDITION ONLY TWO OF THE 26 NEW MEMBERS ARE FORMER LEGISLATIVE STAFFERS DEMOCRAT VALERIE BROWN TOLD THE CALIFORNIA JOURNAL VIRTUALLY NONE OF THE NEW MEMBERS CAME OUT OF STATE GOVERNMENT THEY MAINLY COME FROM LOCAL GOVERNMENT LOCAL BUSINESS OR COMMUNITY SERVICE MANY OF THE NEW MEMBERS ARE TRUE CITIZEN POLITICIANS AND WELCOME THE FACT THAT THEY'LL HAVE ONLY SIX YEARS TO MAKE THEIR MARK IN OFFICE REPUBLICAN KATHLEEN HONEYCUTT SAYS NEW MEMBERS HAVE NO TIME FOR DELAY SHE NOTES THE FRESHMEN COME ON TIME FOR MEETINGS IF SOME OF THESE VETERANS WERE IN THE BUSINESS WORLD THEY WOULD HAVE BEEN FIRED LONG AGO FOR SHOWING UP LATE SO OFTEN DEMOCRAT LOUIS CALDERA SAYS THAT HE UNDERSTANDS AVERAGE VOTERS BETTER BECAUSE I'VE BEEN IN THE REAL WORLD' MORE RECENTLY THAN THE VETERANS HAVE IF BILL CLINTON WANTS TO SEE HOW TERM LIMITS CAN SHAKE UP A COMPLACENT LEGISLATURE HE NEED LOOK NO FURTHER THAN HIS NATIVE ARKANSAS LAST YEAR 60 OF ARKANSAS VOTERS BACKED TERM LIMITS LAST MONTH PRESSURE FROM FRESHMEN MEMBERS LED TO THE ELECTION OF A NEW SPEAKER AND THE REMOVAL OF FOUR VETERAN MEMBERS FROM KEY COMMITTEES TERM LIMITS HAS FORCED US INTO A MORE GET WITH IT' MODE SAYS REP ERNEST CUNNINGHAM NEW MEMBERS WERE FORCED TO CHALLENGE THE ARCHAIC SENIORITY SYSTEM TO HAVE ANY HOPE OF MAKING THEIR MARK BEFORE TERM LIMITS KICK IN TERM LIMITS ARE ALSO HAVING A SALUTARY EFFECT AT THE LOCAL LEVEL IN TEXAS THE SAN ANTONIO EXPRESSNEWS EDITORIALIZED AGAINST TERM LIMITS FOR THE CITY COUNCIL IN 1991 JUST BEFORE THEY WON 65 APPROVAL NOW W LAWRENCE WALKER THE PAPER'S PUBLISHER SAYS HE'S CHANGED HIS MIND AND THINKS TERM LIMITS ARE A GOOD IDEA WE HAVE A BETTER AND MORE DIVERSE COUNCIL WITH THE OLD WOOD CLEARED AWAY HE TOLD US THEY QUICKLY RESOLVED A WATER SYSTEM PROBLEM THE OLD COUNCIL HAD DELAYED FOR YEARS DESPITE SUCH REALWORLD EVIDENCE POLITICIANS CONTINUE TO STRAIN TO SQUASH TERM LIMITS IN TEXAS THE STATE LEGISLATURE STONEWALLED TERM LIMIT ADVOCATES THIS MONTH THE US SENATE HAS BRAZENLY VOTED TO HAVE ITS TAXPAYERFUNDED LEGAL COUNSEL REPRESENT SENATOR DALE BUMPERS IN A SUIT TO OVERTURN ARKANSAS'S TERM LIMIT GRIFFIN BELL PRESIDENT CARTER'S ATTORNEY GENERAL AND NOW THE LEAD ATTORNEY DEFENDING TERM LIMIT LAWS SAYS IT'S AN OUTRAGE THAT TAXPAYER FUNDS ARE NOW ROUTINELY USED TO THWART THE WILL OF THE PEOPLE AGAIN WHY DOESN'T BILL CLINTON GET OUT IN FRONT OF THIS MOVEMENT HE MIGHT EVEN DISCOVER UNSUSPECTED SUPPORT FOR A PUBLICFUNDING MECHANISM FOR CAMPAIGNS IF HE JOINED THAT IDEA WITH LIMITS ON TERMS FOR THE WINNERS ADD THE LINE ITEM VETO TO THE CLINTON AGENDA DISCUSSED BELOW SEE RELATED ARTICLE REVIEW & OUTLOOK EDITORIAL LINE ITEM VOODOO WSJ APRIL 28 1993 AND YOU'D HAVE THE BEGINNINGS OF A PRESIDENCY DEDICATED TO REAL CHANGE SEE RELATED LETTER LETTERS TO THE EDITOR TERM LIMIT LAW MAY BRING REGRET WSJ JUNE 3 1993 9304280114 YY93 MM06 9306030067 930423 LAW LEGAL BEAT GM SLASHES LAW FIRMS AS CONCERNS FOCUS ON WORKING RELATIONSHIPS BY ELLEN JOAN POLLOCK STAFF REPORTER OF THE WALL STREET JOURNAL GENERAL MOTORS CORP HAS TOLD 450 OF ITS FAVORITE LAW FIRMS THAT THEIR SERVICES AREN'T NEEDED ANY MORE GM IS JUST ONE OF THE BIG COMPANIES THAT RECENTLY HAVE BEEN CUTTING THE NUMBER OF LAW FIRMS THEY USE AFTER SEVERAL YEARS OF SEEKING TO FOSTER PRICE COMPETITION BY EXPANDING THEIR ROSTER OF OUTSIDE COUNSEL BY CONCENTRATING ON FEWER LAW FIRMS EXECUTIVES OF THESE COMPANIES BELIEVE THEY WILL BE BETTER ABLE TO EDUCATE LAWYERS ABOUT THEIR BUSINESS NEEDS WHICH OFTEN GET LOST IN THE TUSSLE OF LITIGATION IN ADDITION TO GM FORD MOTOR CO DU PONT CO AND SMITHKLINE BEECHAM PLC ARE AMONG THE COMPANIES NOW TRIMMING THEIR OUTSIDECOUNSEL LISTS THE STRATEGY REPRESENTS SOMETHING OF A THROWBACK UNTIL A FEW YEARS AGO COMPANIES HAD RELIED FOR DECADES ON JUST A FEW TRUSTED COUNSELORS BUT IN THE LATE 1980S MANY COMPANIES SOUGHT TO CUT THEIR LEGAL FEES IN PART BY REQUIRING LAW FIRMS TO COMPETE AND EVEN BID FOR INDIVIDUAL PIECES OF WORK THE RESULT WAS A SHARP INCREASE IN THE NUMBER OF LAW FIRMS RETAINED BY THE COMPANIES NOW THE PENDULUM HAS SWUNG BACK THE CHANGE IS NOTABLE BECAUSE PURE PRICE CONSIDERATIONS ARE BECOMING SECONDARY TO STRONG WORKING RELATIONSHIPS BETWEEN CLIENTS AND LAWYERS IN THE LAST SIX MONTHS THIS HAS BECOME AN IMPORTANT THEME SAYS JONATHAN P BELLIS DIRECTOR OF LEGAL CONSULTING AT PRICE WATERHOUSE IN NEW YORK THIS IS A MORE ENLIGHTENED APPROACH TO MANAGING LEGAL SERVICES DU PONT EMBARKED ON ITS LAWFIRM REDUCTION PLAN LAST FALL AND IS REEVALUATING ITS LAW FIRMS MOSTLY ON A STATEBYSTATE BASIS THE GOAL IS TO CUT THE NUMBER OF FIRMS USED BY THE COMPANY FOR LITIGATION TO BETWEEN 70 AND 90 FROM ABOUT 300 DANIEL B MAHONEY A DU PONT LAWYER WORKING ON THE PROJECT SAID THE COMPANY RECENTLY SELECTED FOUR FIRMS IN CALIFORNIA PREVIOUSLY THE COMPANY HAD SPREAD ITS WORK TO ABOUT 30 FIRMS IN THE STATE KEY TO WHETHER LAW FIRMS MAKE THE CUT IS THEIR WILLINGNESS TO WORK IN A PARTNERSHIP RELATIONSHIP WITH DU PONT'S INSIDE LAWYERS SAID MR MAHONEY DU PONT IS ALSO ASKING FOR 15 TO 20 RATE DISCOUNTS THAT DEPEND ON THE VOLUME OF LEGAL WORK MR MAHONEY SAID DU PONT'S MANAGEMENT DECIDED TO TRY TO GET A HANDLE ON ITS LAWFIRM RELATIONSHIPS AFTER IT SAW AN INCREASE IN ITS VOLUME OF LITIGATION THE COMPANY HAS ABOUT 2100 PENDING CASES DU PONT'S INHOUSE LAWYERS ARE BORROWING STRATEGIES FROM OTHER AREAS OF THE COMPANY INCLUDING THE ADVERTISING AND PLANT PROCUREMENT DEPARTMENTS WHICH ALSO CUT THE NUMBER OF VENDORS THEY USE THE NEW MANAGEMENT STYLE SAID MR MAHONEY WILL ALLOW DU PONT TO TAKE A RIFLE SHOT RATHER THAN A SCATTERSHOT APPROACH TO LITIGATION STRATEGY BECAUSE OUTSIDE COUNSEL WILL HAVE A BETTER UNDERSTANDING OF WHAT IS IMPORTANT TO DU PONT'S BUSINESS STAFFERS TOO OFTEN HE ADDS LITIGATORS DO A GOOD JOB WORKING ON A PROBLEM THAT IS NOT A REAL PROBLEM BECAUSE THEY DON'T HAVE A GRASP OF THE BUSINESS OBJECTIVES OF THE COMPANY FORD ALSO RECENTLY REDUCED THE NUMBER OF FIRMS IT USES FOR LITIGATION THE COMPANY PREVIOUSLY HAD SELECTED CERTAIN FIRMS TO DO SPECIALIZED OFTEN REPETITIVE WORK INCLUDING PRODUCTLIABILITY CASES NOW FORD IS TRYING TO DESIGNATE A LIMITED NUMBER OF FIRMS FOR MORE GENERAL LITIGATION INCLUDING DEALER DISPUTES AND A VARIETY OF OTHER COMMERCIAL CASES THREE FIRMS HAVE BEEN CHOSEN TO HANDLE FORD'S GENERAL LITIGATION NATIONALLY ACCORDING TO JOHN W MARTIN THE COMPANY'S GENERAL COUNSEL THE FIRMS ARE STINSON MAG & FIZZELL IN KANSAS CITY SUTHERLAND ASBILL & BRENNAN IN ATLANTA AND MAYER BROWN & PLATT IN CHICAGO PREVIOUSLY FORD USED FIRMS ALL OVER THE COUNTRY SOME OF WHICH MIGHT GET A CASE ONCE EVERY THREE OR FOUR YEARS MR MARTIN SAID ONE OF THE COMPANIES FURTHEST ALONG ON ITS REDUCTION PLAN IS GM WHICH HAS CUT THE NUMBER OF LAW FIRMS IT USES TO 350 FIRMS FROM ABOUT 800 AS PART OF A SEVERALYEAR EFFORT TO REVAMP THE WAY IT MANAGES ITS LEGAL WORK WHEN COMPANIES USE LOTS OF LAW FIRMS YOU'RE INCREASING THE COST TO THE COMPANY ON THE BASIS OF THE NUMBER OF FIRMS YOU HAVE TO EDUCATE SAID GM INHOUSE LAWYER MICHAEL P MILLIKIN YOU LOSE SOMETHING IN TERMS OF THE FIRM BEING ABLE TO KEEP A FINGER ON THE PULSE OF THE COMPANY A NEW ATTORNEY'S PAST WORK REQUIRES THAT WINSTON & STRAWN BE DISQUALIFIED FROM A CASE A COURT RULED AN ILLINOIS APPEALS COURT SAID THE LAW FIRM CAN'T REPRESENT DRESSER INDUSTRIES INC BECAUSE IT FAILED TO PROPERLY SHIELD THE NEW LAWYER WHO PREVIOUSLY COUNSELED DRESSER'S ADVERSARY FROM ATTORNEYS WORKING ON THE CASE THE RULING SHEDS LIGHT ON THE STEPS THAT LAW FIRMS HAVE TO TAKE TO PROTECT AGAINST ACCUSATIONS THAT THE FAIRNESS OF A LAWSUIT HAS BEEN UNDERMINED WHEN LAWYERS JOIN FROM OTHER FIRMS STEPHEN GILLERS A LEGAL ETHICS SPECIALIST AT NEW YORK UNIVERSITY SCHOOL OF LAW SAID SOME LAW FIRMS AVOID ANY TAINT BY NOT HIRING LATERALLY OR ONLY IN RARE OCCASIONS MR GILLERS SAID LAW FIRMS IN NEW YORK ARE REQUIRED TO WAIT UNTIL A LAWSUIT IS RESOLVED BEFORE BRINGING ON A NEW LAWYER WITH A POTENTIAL CONFLICT GARY L FAIRCHILD WINSTON & STRAWN'S MANAGING PARTNER SAID THE DISQUALIFICATION IS COSTLY FOR BOTH THE CHICAGO LAW FIRM AND DRESSER A DALLASBASED COMPANY MR FAIRCHILD SAID THE LAW FIRM HAD LOGGED MORE THAN 10000 HOURS PREPARING FOR THE CASE IN WHICH DRESSER WAS SUED BY SK HANDTOOL CORP AND CORCORAN PARTNERS LTD OVER THE SALE OF A DRESSER HANDTOOL DIVISION HE SAID DRESSER HASN'T DECIDED WHETHER TO RETAIN ANOTHER LAW FIRM OR TO SETTLE THE CASE OUT OF COURT MR FAIRCHILD SAID THE BULK OF THE WORK WAS DONE BEFORE THE NEW ATTORNEY STEPHEN P DURCHSLAG JOINED WINSTON & STRAWN IN AUGUST 1989 FROM CHICAGO LAW FIRM SIDLEY & AUSTIN AT SIDLEY & AUSTIN MR DURCHSLAG HAD ADVISED CORCORAN PARTNERS ON PROMOTION ADVERTISING AND INTELLECTUALPROPERTY MATTERS AND HAD ATTENDED MEETINGS WHERE THE SALE OF THE HANDTOOL DIVISION WAS DISCUSSED ACCORDING TO COURT PAPERS WINSTON & STRAWN WAITED FIVE WEEKS AFTER MR DURCHSLAG CAME ABOARD BEFORE IT CIRCULATED AN INHOUSE MEMO SPECIFYING THE STEPS IT WOULD TAKE TO SHIELD MR DURCHSLAG FROM CONTACT WITH LAWYERS REPRESENTING DRESSER LAWYERS FOR WINSTON & STRAWN ARGUED THAT MR DURCHSLAG HADN'T DIVULGED ANY SECRETS ABOUT CORCORAN PARTNERS TO LAWYERS WORKING ON THE CASE BUT AN INTERMEDIATE APPEALS COURT IN CHICAGO THIS WEEK UPHELD A TRIAL JUDGE'S 1990 DECISION TO DISQUALIFY THE FIRM FOR NOT TAKING ADEQUATE MEASURES KEVIN M FORDE A CHICAGO ATTORNEY WHO REPRESENTED DRESSER AND WINSTON & STRAWN SAID A REQUEST FOR A REHEARING IS BEING CONSIDERED DAVID L LEE A LAWYER WITH THE LAW OFFICE OF FREDERIC F BRACE JR IN CHICAGO WHICH REPRESENTED CORCORAN PARTNERS SAID THE RULING IS GOOD FOR CLIENTS HE SAID LAWYERS COULD AVOID SUCH PROBLEMS BY PUTTING THEIR CLIENTS ON NOTICE THAT THEY ARE CONTEMPLATING A MOVE TO A NEW LAW FIRM SK HANDTOOL CORP AND CORCORAN PARTNERS LTD VS DRESSER INDUSTRIES INC ILLINOIS APPELLATE COURT CHICAGO NO 1911403 HARD TIMES A NEW STUDY MEASURES THE IMPACT OF AN ECONOMIC DOWNTURN ON THE NUMBER OF EMPLOYMENTDISCRIMINATION LAWSUITS THAT ARE FILED THE STUDY PUBLISHED IN THE SOUTHERN CALIFORNIA LAW REVIEW FOUND THAT THE NUMBER OF DISCRIMINATION SUITS ROSE 07 FOR EVERY 1 INCREASE IN THE JOBLESS RATE THE MAIN REASON THE RESEARCHERS SAY IS THAT DURING A RECESSION EMPLOYMENTDISCRIMINATION VICTIMS STAY UNEMPLOYED LONGER AND AS A RESULT WIN BIGGER DAMAGE AWARDS WHICH ENCOURAGES OTHER LAWSUITS THE AUTHORS OF THE STUDY TWO RESEARCH FELLOWS OF THE AMERICAN BAR FOUNDATION PREDICT THAT BIGGER DAMAGE AWARDS ALLOWED BY THE CIVIL RIGHTS ACT OF 1991 WILL BRING ON AS MANY AS 1000 MORE FEDERAL LAWSUITS A YEAR COLORADO FIRMS BANNED FACULTY AT NEW YORK UNIVERSITY SCHOOL OF LAW VOTED TO PROHIBIT COLORADO LAW FIRMS FROM RECRUITING ON CAMPUS THE MOVE IS TO PROTEST COLORADO'S ADOPTION LAST FALL OF A STATE CONSTITUTIONAL AMENDMENT BANNING ANTIDISCRIMINATION LAWS PROTECTING GAY PEOPLE THE SCHOOL IS THE FIRST TO ADOPT SUCH A MEASURE SAID WIDNEY BROWN OF THE SCHOOL'S LESBIAN AND GAY LAW STUDENTS GROUP ALTHOUGH OTHER SCHOOLS ARE CONSIDERING SIMILAR STEPS ABOUT A DOZEN LAW FIRMS FROM COLORADO RECRUITED AT NYU LAST YEAR MS BROWN SAID CONVICTION OVERTURNED AN APPEALS COURT OVERTURNED THE CONVICTION OF ROBERT GARCIA THE FORMER US CONGRESSMAN ACCUSED OF EXTORTING A NOINTEREST LOAN FROM DEFUNCT WEDTECH CORP THE SCANDALRIDDEN DEFENSE CONTRACTOR IT MARKS THE SECOND TIME PROSECUTORS HAVE BEEN SET BACK IN THE CASE WHICH WAS RETRIED AFTER THE FIRST VERDICT ALSO WAS THROWN OUT ON APPEAL THIS TIME AROUND THE SECOND US CIRCUIT COURT OF APPEALS IN NEW YORK SAID THE TRIAL JUDGE DIDN'T PROPERLY INSTRUCT THE JURY ON THE CHARGES THE APPEALS COURT ALSO OVERTURNED THE CONVICTIONS OF JANE LEE GARCIA MR GARCIA'S WIFE AND OF RALPH VALLONE JR A GARCIA FRIEND THE COURT LEFT OPEN THE POSSIBILITY FOR A THIRD TRIAL ARTHUR S HAYES CONTRIBUTED TO THIS ARTICLE SEE RELATED LETTER LETTERS TO THE EDITOR PCNESS AT NYU WSJ JUNE 3 1993 9304230004 YY93 MM06 9306020156 930602 INSIDE TRACK OILSERVICE RALLY FUELS INSIDE SALES BY CALEB SOLOMON AND WARREN GETLER STAFF REPORTERS OF THE WALL STREET JOURNAL TAKING ADVANTAGE OF A PHENOMENAL RUNUP IN OILSERVICE STOCK PRICES THIS YEAR EXECUTIVES IN MANY COMPANIES SOLD SIZABLE AMOUNTS OF THEIR HOLDINGS SECURITIES AND EXCHANGE COMMISSION FILINGS SHOW BUT WHILE THE SALES MAY REFLECT A PAUSE IN THE SECTOR'S RALLY ANALYSTS AND COMPANY OFFICIALS SAY THEY DON'T PORTEND A SUDDEN SHIFT IN THE INDUSTRY'S NEWFOUND GOOD FORTUNE UNDERLYING TRENDS THEY SAID POINT TO FURTHER SHAREPRICE APPRECIATION IF NOT THIS SUMMER THEN AT LEAST WITHIN THE NEXT 12 MONTHS AS FOR THE STOCK SALES THE OILSERVICE INDUSTRY HAS BEEN WOUNDED OR DEAD FOR 10 YEARS SAID KENNETH MILLER AN ANALYST AT LEHMAN BROTHERS IN NEW YORK ADDED AN INDUSTRY EXECUTIVE MANY GUYS HAVE HELD THEIR SHARES FOR THE BETTER PART OF A DECADE AND THE RALLY SEEMED A GOOD TIME TO FINALLY TAKE SOME PROFITS THE SALES CAME AMID A RALLY THAT HAS SEEN DRILLING STOCKS SURGE MORE THAN 57 SERVICE STOCKS MORE THAN 22 AND EXPLORATION AND PRODUCTION COMPANY SHARES MORE THAN 20 THUS FAR THIS YEAR WITH THE UPTICK IN OUR STOCK THAT WE'VE SEEN ANYWHERE UP TO 30 I THOUGHT IT WAS BETTER TO SELL OFF SOME SHARES NOW TO PAY CURRENT TAXES AND TO PAY OFF DEBT THAT HAD BEEN INCURRED TO PAY OFF PAST TAXES SAID WILLIAM PRITCHARD VICE PRESIDENT AND GENERAL COUNSEL AT PARKER DRILLING CO MR PRITCHARD PARED HIS DIRECT HOLDINGS 17 WHEN HE SOLD 16000 SHARES BETWEEN LATE FEBRUARY AND THE END OF APRIL ACCORDING TO SEC FILINGS HE SOLD AN ADDITIONAL 6000 SHARES IN MAY BUT STILL OWNS 71283 SHARES DIRECTLY AND NEARLY 30000 SHARES INDIRECTLY THE FILINGS SHOW I FEEL GOOD ABOUT THE POTENTIAL OF OUR COMPANY MR PRITCHARD SAID EMPHASIZING THAT HE DIDN'T SELL THE STOCK THINKING THAT IT WAS HEADING DOWN SOON OTHER COMPANIES AT WHICH INSIDERS HAVE SOLD LARGE CHUNKS OF THEIR DIRECT HOLDINGS SINCE THE BEGINNING OF THE YEAR INCLUDE OFFSHORE PIPELINES INC ROWAN COS AND HELMERICH & PAYNE INC ACCORDING TO SEC FILINGS THE PRIMARY CATALYST FOR THE SURGE IN OILSERVICE STOCK PRICES WAS THE SUSTAINED RISE IN NATURALGAS PRICES THIS YEAR MOST OF THE DRILLING IN THE US IS FOR GAS THOMAS DRISCOLL AN ANALYST FOR SALOMON BROTHERS INC IN NEW YORK PREDICTS GAS PRICES AT THE WELL WILL AVERAGE 210 PER THOUSAND CUBIC FEET THIS YEAR UP FROM 161 IN 1992 TO A LARGE EXTENT A HIGHER LEVEL OF GAS PRICES IS ALREADY BUILT INTO STOCK PRICES HE SAID BUT WHILE THE EASY MONEY IS BEHIND US HE SAID SHARE PRICES OF COMPANIES SERVICING THE NATURALGAS INDUSTRY WILL CONTINUE TO ENJOY SUPPORT FROM GENERALLY FIRMING GAS PRICES MR MILLER SAID MORE THAN JUST THE PRICE OF GAS WILL BOOST PROSPECTS FOR DRILLERS AND SERVICE COMPANIES IN A RISINGPRICE ENVIRONMENT INDEPENDENTS WILL SPEND MORE OF THEIR INCREASING CASH FLOW ON DRILLING FOR RESERVES RATHER THAN BUYING THEM FROM OTHER COMPANIES HE SAID AT PARKER DRILLING WHICH LEASES RIGS IN THE US AND OVERSEAS MR PRITCHARD AND FOUR OTHER INSIDERS SOLD AN AVERAGE 17 OF THEIR DIRECT HOLDINGS IN THE TULSA OKLA COMPANY BETWEEN FEBRUARY AND APRIL AS THE STOCK RALLIED OFF LEVELS NEAR ITS 52WEEK LOW OF 475 A SHARE ON THE NEW YORK STOCK EXCHANGE THE FIVE INSIDERS SOLD 54100 SHARES AT AN AVERAGE PRICE OF 627 EACH SEC DATA SHOW PARKER DRILLING CO SHARES CLOSED AT 725 YESTERDAY AT HOUSTON'S OFFSHORE PIPELINES A PROVIDER OF MARINE CONSTRUCTION SERVICES TO OIL AND GAS PRODUCERS FOUR INSIDERS SOLD 519670 SHARES BETWEEN FEBRUARY AND APRIL AT AN AVERAGE PRICE OF 1390 EACH SEC FILINGS SAY THERE WAS ALSO SOME OPTIONSRELATED SELLING IN MAY FILINGS SHOW THE SALES CAME AS OFFSHORE'S STOCK PRICE MOVED STEADILY UP FROM LEVELS AROUND 11 A SHARE AT THE BEGINNING OF THE YEAR SEC FILINGS SHOW THAT FRANKLIN C WADE THE COMPANY'S CHAIRMAN SOLD 500000 SHARES OR 22 OF HIS DIRECT HOLDINGS ON APRIL 30 MR WADE WAS UNAVAILABLE FOR COMMENT BUT OFFSHORE PIPELINES'S PRESIDENT RICHARD FOREMAN SAID MR WADE SOLD BECAUSE OF SOME PERSONAL DEBT THAT HE WAS INTERESTED IN RETIRING MR FOREMAN SAID COMPANY EXECUTIVES CONTINUE TO KEEP MUCH OF THEIR PERSONAL WEALTH INVESTED IN THE CONCERN WHICH WENT PUBLIC IN JULY 1990 AND THAT THEY COLLECTIVELY OWN A GOOD SLUG OF STOCK OVER 25 OF THE 12 MILLION COMMON SHARES OUTSTANDING OFFSHORE PIPELINE CLOSED AT 17 A SHARE ON THE BIG BOARD AT ROWAN A HOUSTON DRILLING COMPANY INSIDER SELLING HAS BEEN NOTABLE SINCE LATE LAST YEAR WITH FOUR INSIDERS SELLING NEARLY 100000 SHARES AT AN AVERAGE PRICE OF 820 EACH SEC FILINGS SHOW THE DISPOSALS RANGED FROM 11 TO 100 OF THE INSIDERS' DIRECT HOLDINGS ROWAN VICE PRESIDENT PAUL L KELLY SOLD HIS ENTIRE DIRECT HOLDING OF 6250 SHARES AT AN AVERAGE PRICE OF 750 EACH BETWEEN LATE DECEMBER AND EARLY FEBRUARY ACCORDING TO THE SEC DATA MR KELLY DIRECTOR OF SPECIAL PROJECTS SAID HE SOLD THE SHARES FOR PERSONAL FINANCIAL REASONS IN HINDSIGHT I REGRET HAVING HAD TO SELL AT THAT TIME BECAUSE THE STOCK HAS MOVED HIGHER HE SAID WE NOW HAVE THE STRONGEST OFFSHORE DRILLING MARKET THAT WE'VE HAD IN ABOUT THE PAST 10 YEARS AND SO I'M PERSONALLY OPTIMISTIC ABOUT THE COMPANY'S FUTURE PROSPECTS MR KELLY SAID HE RECENTLY EXERCISED OPTIONS TO BUY 2500 SHARES WITH NO IMMEDIATE PLANS TO SELL AND THAT HE OWNS ADDITIONAL OPTIONS WHICH ARE EXERCISABLE TO BUY 6250 SHARES ROWAN CLOSED AT 10375 A SHARE YESTERDAY AT HELMERICH & PAYNE A BIG OIL AND NATURALGAS DRILLER AND EXPLORER BASED IN TULSA SIX INSIDERS SOLD A COMBINED 30000 SHARES AT AN AVERAGE PRICE OF 27 BETWEEN EARLY MARCH AND EARLY MAY SEC FILINGS SHOW THE INSIDERS PARED THEIR HOLDINGS 11 ON AVERAGE CITING TAX REASONS AND OTHER PRESSING PERSONAL FINANCE NEEDS THE SALE WAS TOTALLY TAXPAYMENT MOTIVATED SAID DOUGLAS FEARS HEAD OF INVESTOR RELATIONS WHO SOLD 3500 SHARES OR 10 OF HIS DIRECT HOLDINGS I SOLD BECAUSE I HAD TO PAY UNCLE SAM FOR RECENT STOCK GRANTS HE SAID THE STOCK CLOSED YESTERDAY AT 36 A SHARE IN NEW YORK STOCK EXCHANGE TRADING 9306020155 930602 ECONOMY MANUFACTURING GREW IN MAY BUYERS REPORT NEW ORDERS GAINED SURVEY SAYS PRICE RISES WERE SMALLEST SINCE JANUARY BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON MANUFACTURING EXPANDED IN MAY AFTER A DISAPPOINTING SETBACK THE MONTH BEFORE ACCORDING TO A SURVEY OF PURCHASING EXECUTIVES THE INDEX OF THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT ROSE TO 511 LAST MONTH AFTER REGISTERING 497 IN APRIL IN THE INDEX A READING ABOVE 50 GENERALLY MEANS THE MANUFACTURING ECONOMY IS EXPANDING AND A READING BELOW 50 SUGGESTS IT IS CONTRACTING THE FLIP BACK INTO GROWTH IS AN ENCOURAGING SIGN AFTER HEALTHY GAINS FOR FIVE STRAIGHT MONTHS MANUFACTURING SEEMED TO STAGNATE DURING MARCH AND APRIL BUT THIS LATEST INDEX WHICH OFFERS ONE OF THE FIRST GLIMPSES AT HOW THE MANUFACTURING ECONOMY DID LAST MONTH SUGGESTS THAT INDUSTRIAL PRODUCTION AND FACTORY ORDERS GAINED SOME MOMENTUM IN MAY AS WELL PRODUCTION WAS MUCH STRONGER IN MAY THAN IN APRIL THE SURVEY FOUND NEW ORDERS IMPROVED MODESTLY OVER THE MONTH ALTHOUGH NOT ENOUGH TO LIFT PROSPECTS FOR EMPLOYMENT NEW ORDERS WILL HAVE TO ADVANCE AT MUCH HIGHER LEVELS IN ORDER FOR THE ECONOMY TO IMPROVE AT A MORE VIGOROUS PACE SAID ROBERT J BRETZ HEAD OF THE SURVEY AND DIRECTOR OF CORPORATE PURCHASING AT PITNEY BOWES INC THE MAJORITY OF PURCHASING MANAGERS SAID ORDER BACKLOGS WERE UNCHANGED IN MAY SUGGESTING THEY ARE NOT PRESSURED TO ADD NEW WORKERS TO KEEP UP WITH DEMAND IN THE INDEX THE PRICING NEWS WAS ENCOURAGING PRICES INCREASED LAST MONTH ON THE MANUFACTURING FRONT BUT AT THEIR SLOWEST PACE SINCE JANUARY MR BRETZ SAID THAT SUGGESTS THAT THE INFLATION PRESSURES IN THE FIRST THREE MONTHS OF THE YEAR HAVE SUBSIDED SEPARATELY THE COMMERCE DEPARTMENT SAID AMERICANS SPENT MORE AND MADE LESS IN APRIL DISPOSABLE PERSONAL INCOME AFTER ADJUSTMENTS FOR INFLATION DROPPED 04 WHILE SPENDING JUMPED 07 THE FACT THAT CONSUMERS DIPPED INTO THEIR SAVINGS FOR THEIR SPENDING SPREE MEANT THAT THE SAVINGS RATE OF AMERICANS DROPPED IN APRIL TO 43 FROM 53 IN MARCH THE DEPARTMENT ALSO SAID NEW CONSTRUCTION SPENDING DECLINED 15 IN APRIL THE DROP IN NEW CONSTRUCTION PUT IN PLACE CAME AFTER A REVISED 09 DECLINE IN MARCH THE APRIL SPENDING LEVEL WAS DOWN 16 FROM THE TOTAL FOR APRIL 1992 SPENDING WAS OFF 12 IN MARCH FOR NEW SINGLEFAMILY HOMES FOR THE THIRD CONSECUTIVE MONTHLY DECLINE APARTMENT CONSTRUCTION WHICH HAD TEMPORARILY STRENGTHENED TURNED WEAK AGAIN FALLING 146 IN THE PRIVATE SECTOR DECLINES IN CONSTRUCTION OF INDUSTRIAL AND RELIGIOUS BUILDINGS AND HOTELS AND MOTELS WERE OFFSET BY INCREASES IN OFFICE AND EDUCATIONAL BUILDINGS HOSPITALS AND OTHER INSTITUTIONS PUBLIC CONSTRUCTION SPENDING DROPPED 14 DECLINES IN BUILDING OF SCHOOLS HOSPITALS OTHER PUBLIC BUILDINGS CONSERVATION FACILITIES AND SEWER SYSTEMS OFFSET INCREASES IN PUBLIC HOUSING HIGHWAYS AND WATERSUPPLY FACILITIES ALL FIGURES WERE ADJUSTED FOR INFLATION AND NORMAL SEASONAL VARIATIONS BEFORE ADJUSTMENT FOR INFLATION CONSTRUCTION SPENDING IN APRIL DECLINED 04 TO A 4444 BILLION ANNUAL RATE IN ADDITION CONSTRUCTION CONTRACTS FELL 1 IN APRIL BECAUSE OF UNEASINESS ABOUT THE ECONOMY AND SLOW EMPLOYMENT GROWTH ACCORDING TO FW DODGE MCGRAWHILL INC'S FORECASTING UNIT APRIL CONSTRUCTION CONTRACTING WAS AT AN ANNUAL RATE OF 2444 BILLION DOWN FROM 247 BILLION IN MARCH THE DODGE SURVEY RECORDS NEW CONSTRUCTION CONTRACTS AS THEY ARE AWARDED THE COMMERCE DEPARTMENT RECORDS ONLY WHAT IS ACTUALLY SPENT IN A GIVEN MONTH DODGE IGNORES RENOVATIONS WHILE THE COMMERCE DEPARTMENT INCLUDES THEM HERE IS THE COMMERCE DEPARTMENT'S LATEST REPORT ON PERSONAL INCOME THE FIGURES ARE AT SEASONALLY ADJUSTED ANNUAL RATES IN TRILLIONS OF DOLLARS HERE ARE THE COMMERCE DEPARTMENT'S FIGURES FOR CONSTRUCTION SPENDING IN BILLIONS OF DOLLARS AT SEASONALLY ADJUSTED ANNUAL RATES 9306020154 930602 WHO'S NEWS U S WEST INC U S WEST INC ENGLEWOOD COLO VICTOR PAVLENKO 48 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF PRESIDENT OF U S WEST INTERNATIONALRUSSIA PREVIOUSLY VICE PRESIDENT OF U S WEST SPECTRUM ENTERPRISES INTERNATIONAL MR PAVLENKO WILL HAVE RESPONSIBILITY FOR THE COMPANY'S JOINT VENTURES IN RUSSIA AND LITHUANIA AND WILL BE BASED IN MOSCOW 9306020153 930602 HIGH SEAS SCOURGE PIRATES RETURN IN ASIA ARMED WITH AK47S INSTEAD OF BOLO KNIVES CREWS CAN LOSE THEIR CASH CARGO EVEN THEIR LIVES TO RAIDERS IN SPEEDBOATS SET ADRIFT IN CROWDED WATERS BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL IN THE JAVA SEA FAINTLY ILLUMINATED BY STARLIGHT THE MV EAGLE CLOUD GLIDES QUIETLY THROUGH EQUATORIAL WATERS A SHADOWY SILHOUETTE AGAINST A GLISTENING SEA PETER D'LIMA SCANS THE HORIZON THROUGH BINOCULARS THEN GLANCES AT A RADAR SCREEN FOR SIGNS OF UNUSUAL ACTIVITY A WALKIETALKIE RUPTURES THE PREDAWN CALM SAFE FOR NOW BELOW DECK A SHIP'S MATE HAS SECURED HATCHES AND PORTHOLES LEADING TO THE CREW'S QUARTERS AN UNLOCKED PASSAGE COULD PROVE DEADLY PIRATES AFTER ALL HAVE EVEN BEEN KNOWN TO USE CROWBARS TO BREAK THROUGH LOCKED AND BARRED STEEL DOORS THE SCOURGE OF THE HIGH SEAS IS BACK BANDS OF RUFFIANS OFTEN HEAVILY ARMED ARE MENACING ASIA'S SHIPPING LANES USING GRAPPLING HOOKS TO CLAMBER ONTO LARGE MERCHANT VESSELS THEN BURSTING INTO CREW CABINS TO STEAL CASH AND VALUABLES THEY ROB PAYROLL SAFES HELP THEMSELVES TO CARGO AND SOMETIMES MAKE OFF WITH ENTIRE VESSELS SHIPS HAVE BEEN RAKED BY AUTOMATIC GUNFIRE AND BLASTED WITH GRENADE LAUNCHERS THE SHIPPING INDUSTRY GOVERNMENTS AND THE UNITED NATIONS ARE TRYING TO CONTAIN THE PERIL BUT SO FAR TO LITTLE AVAIL LAST DECEMBER NOT FAR FROM WHERE THE WARY MR D'LIMA NOW GUIDES THE EAGLE CLOUD ON ITS WEEKLY RUN FROM JAKARTA TO SINGAPORE A BRITISH SHIP CAPTAIN AND HIS FILIPINO FIRST OFFICER WERE SHOT TO DEATH BY PIRATES WHO EMPTIED THE SMALL CARGO SHIP'S SAFE OF A FEW HUNDRED DOLLARS THREE MEN WERE THROWN OVERBOARD AND THE DANISHOWNED BALTIMAR ZEPHYR PLOWED UNPILOTED THROUGH THE NIGHT FOR MILES BEFORE THE REMAINING HANDS REGAINED CONTROL THE DANGER THAT SUCH A VESSEL COULD SLAM INTO ANOTHER SHIP OR SHORE PERHAPS WITH DISASTROUS ECOLOGICAL CONSEQUENCES IS REAL WHEN THIEVES BOARDED A SUPERTANKER IN THE STRAIT OF MALACCA OFF MALAYSIA THEY TIED UP THE CREW AND LEFT THE MAMMOTH OIL TANKER STEAMING ON AUTOMATIC PILOT THROUGH ONE OF THE WORLD'S MOST CROWDED SHIPPING CHANNELS IT TOOK AN HOUR AND A HALF FOR THE CREW TO WRIGGLE LOOSE AND RETURN TO THE BRIDGE ANOTHER LOADED TANKER THE WORLD BRIDGE WAS SHOT AT OFF CHINA'S SOUTHERN COAST AFTER IGNORING A SMALLER VESSEL'S WARNINGS TO HALT BULLETS POCKMARKED THE SHIP'S STEEL HULL BUT DIDN'T PENETRATE TO ITS POTENTIALLY EXPLOSIVE CARGO OF NAPHTHA FUEL IN THE FIRST FOUR MONTHS OF THIS YEAR THERE WERE 31 OFFICIALLY RECORDED INCIDENTS OF PIRACY WORLDWIDE OF WHICH 28 OCCURRED IN ASIA THE PACE IS ABOUT THE SAME AS IN 1992 WHEN 106 PIRATE ATTACKS OCCURRED 73 OF THEM IN ASIA BUT SHIPOWNERS AND CREWS SAY THE ACTUAL NUMBER OF INCIDENTS IS UNCERTAIN AND DOUBTLESS HIGHER BECAUSE PIRACY HAS BECOME SO COMMON THAT IT OFTEN GOES UNREPORTED IF NOBODY IS HURT THE PROLIFERATION OF PIRACY ESPECIALLY IN ASIA HAS TATTOOED FEAR ON MANY A SAILOR'S MIND JUST TWO WEEKS AGO SOME OF OUR CREW HEARD KNOCKING AT THE PORTHOLES SAYS MR D'LIMA THE EAGLE CLOUD'S 28YEAROLD INDIAN FIRST OFFICER WHO KEEPS THE RISKIEST LOOKOUT FROM 4 AM TO 8 AM WE NEVER SAW ANYONE EVEN ON OUR RADAR MIDNIGHT RAIDS MAY HAVE SUPPLANTED THE NOONTIME HOISTING OF THE JOLLY ROGER BUT PIRACY IS NOTHING NEW IN THESE TROPICAL SEAS NEARLY A CENTURY AGO JOSEPH CONRAD WROTE OFTEN OF THE COLORFUL ROBBERS HE CALLED VAGABONDS OF THE SEA A STRONG EASTERLY WIND IN THE BROAD SWATH OF SOUTHEAST ASIA ONCE CALLED MALAYA WAS KNOWN TO EARLY TRADERS AS THE PIRATE WIND THE MALAY PIRATES ABSOLUTELY SWARM IN THE NEIGHBORHOOD OF SINGAPORE WROTE GEORGE WINDSOR EARL AN ENGLISH VISITOR TO THESE PARTS IN 1836 THE PIRATES HAVING LONG BEEN PERMITTED TO COMMIT THEIR MURDERS AND ROBBERIES WITH IMPUNITY NOW CONSIDER THEMSELVES ALMOST INVINCIBLE LIKE PIRATES OF YORE TODAY'S MARAUDERS USUALLY ARE NATIVES OF THE GALAXY OF ISLANDS SCATTERED THROUGHOUT ASIA'S SHIPPING CHANNELS BUT THEY CARRY AK47S INSTEAD OF BOLO KNIVES AND TRAVEL IN SPEEDBOATS INSTEAD OF PROAS THE FAMILY OF A 44YEAROLD HONG KONG FISHERMAN MURDERED BY PIRATES MARCH 28 SAYS HIS ATTACKERS WERE WEARING BLUE JEANS AND TSHIRTS IN THE BEGINNING MOST PIRATES WERE PROBABLY FISHERMEN LOOKING FOR AN EASY GRAB SAYS ERIC V JUDGE THE EAGLE CLOUD'S 57YEAROLD ENGLISH MASTER WHO FOLLOWED HIS FATHER AND THREE UNCLES TO SEA 40 YEARS AGO BUT DIDN'T ENCOUNTER PIRACY UNTIL RECENTLY NOW THE PIRATES ARE MUCH MORE AMBITIOUS MAYBE THEY'VE GOT MORE MONEY INDEED THEIR ORGANIZATION AND PLANNING PIRATES HAVE BEEN KNOWN TO GET ABOARD AND ROB A SHIP IN A MATTER OF MINUTES SUGGEST TO SUSPICIOUS MINDS GOVERNMENT OR MILITARY INVOLVEMENT THE BIGGEST SURGE IN ATTACKS THIS YEAR HAS OCCURRED IN OR NEAR CHINESE WATERS AND THE ATTACKERS OFTEN ABOARD SPEEDBOATS OR SKIFFS THAT CAME FROM BIGGER MOTHER SHIPS WERE WEARING FATIGUE UNIFORMS SHIPOWNERS AND AGENTS SUSPECT ROGUE MILITARY ELEMENTS IN SOME OF THE ATTACKS HONG KONG'S SECURITY BRANCH RECORDED 20 INTERCEPTIONS IN OR NEAR THE BRITISH COLONY'S WATERS IN THE FIRST FOUR MONTHS OF THIS YEAR MOSTLY BY UNIFORMED SAILORS SPEAKING CHINESE SHIPPING EXPERTS IN THE COLONY SAY A BOUNTY SYSTEM UNDER WHICH CHINESE CUSTOMS OFFICIALS GET TO KEEP A PORTION OF THE SALES VALUE OF SMUGGLED GOODS THEY SEIZE MAY BE DRIVING AUTHORITIES IN THE MAINLAND TO PIRACY CHINA HAS ADMITTED TO MAKING OCCASIONAL CHECKS ON SHIPPING BUT SAYS IT IS SIMPLY TRYING TO PROTECT ITS COAST LAST AUGUST PUBLIC SECURITY BUREAU OFFICERS FROM THE SOUTHERN CHINESE CITY OF SHEKOU BOARDED AND SEIZED A 310FOOT PANAMAREGISTERED FREIGHTER THE EAST WOOD AS IT SAILED ALONG CHINA'S COAST TO VIETNAM CARRYING CARS APPLIANCES AND CHEMICALS THE SHIP AND CREW WERE HELD INCOMMUNICADO FOR NEARLY TWO WEEKS WHILE THEIR ANXIOUS AGENTS FRUITLESSLY SOUGHT INFORMATION FROM CHINA AND WERE FREED ONLY AFTER THE CARGO HAD BEEN TAKEN THE LOCAL GOVERNMENT EXPLAINED THAT IT KEPT THE CARGO BECAUSE IT WAS INTENDED FOR SMUGGLING BUT THERE WAS A TWIST THAT AMAZED THE SHIP'S HONG KONG AGENTS THE CHINESE NEVER CLAIMED THE EAST WOOD'S CARGO WASN'T BOUND FOR VIETNAM MERELY THAT ONCE DELIVERED IT MIGHT BE SMUGGLED BACK INTO CHINA OVER LAND THEY SEIZED IT PREEMPTIVELY WE CALL THAT PIRACY PIRACY BY THE CHINESE GOVERNMENT SAYS A FURIOUS CP TANG THE AGENT WHO HAD CHARTERED THE VESSEL TO CARRY THE 75 MILLION IN CARGO TO VIETNAM A NUMBER OF OTHER SHIPS HAVE BEEN WAYLAID ALONG THE SOUTH CHINA COAST AND SHOOTING ATTACKS BY SMALL VESSELS ARE UP IN FEBRUARY A FILIPINO SAILOR WAS HIT IN THE BACK BY A BULLET WHEN HIS SHIP WAS SHOT AT BY A SMALLER VESSEL JUST OUTSIDE HONG KONG WATERS SAILORS BELIEVE IMAGECONSCIOUS GOVERNMENTS COVER UP PIRACY THEY NOTICED THAT REPORTS OF ATTACKS IN INDONESIAN WATERS DIED DOWN ABRUPTLY IN THE MIDDLE OF LAST YEAR AFTER JAKARTA ANNOUNCED AN ANTIPIRACY CAMPAIGN AND AT LEAST 20 ARRESTS CREWMEN SAY THEY KNOW OF ATTACKS SINCE THEN THAT WEREN'T DISCLOSED BY THE GOVERNMENT WHEN THE BALTIMAR ZEPHYR'S CAPTAIN AND FIRST OFFICER WERE SLAIN JAKARTA AT FIRST SUGGESTED IT WAS A MUTINY GOVERNMENTS HAVE COME UNDER INTENSE PRESSURE FROM THE SHIPPING INDUSTRY WHICH WORRIES ABOUT INSURANCE RATES AND THE POSSIBILITY THAT CREWS MIGHT DEMAND INCENTIVES TO RUN CERTAIN ROUTES THE INTERNATIONAL CHAMBER OF COMMERCE'S MARITIME ARM LAST YEAR SET UP A PIRACY CENTER IN KUALA LUMPUR MALAYSIA'S CAPITAL JUST OFF THE STRAIT OF MALACCA WHERE THE MOST ATTACKS TOOK PLACE IN 1991 FROM ITS OFFICE IN A DOWNTOWN HIGHRISE THE CENTER BROADCASTS DAILY TELEX ALERTS TO SHIPS IN THE INDIAN AND PACIFIC OCEANS WARNING OF AREAS WHERE PIRATE ATTACKS HAVE BEEN REPORTED MORE PATROLS RESPONDING TO INDUSTRY PRESSURE INDONESIA MALAYSIA AND SINGAPORE HAVE SET UP NEW COMMUNICATION LINKS AMONG THEIR COASTAL POLICE INDONESIA SAYS IT PLANS TO DEPLOY MANY OF 39 NAVAL VESSELS IT JUST BOUGHT FROM GERMANY TO PATROL FOR PIRATES MALAYSIA PLANS TO INSTALL COASTAL RADAR TO MONITOR THE STRAIT OF MALACCA THE UN IS GETTING INVOLVED A GROUP HAS BEEN WORKING UP SAFETY RECOMMENDATIONS FOR THE INTERNATIONAL MARITIME ORGANIZATION THOUGH ITS WORRIES EXTEND BEYOND PIRACY TO STOWAWAYS SMUGGLING AND MUTINIES THE EAST WOOD THE FREIGHTER SEIZED FOR TWO WEEKS IN AUGUST BY CHINESE AUTHORITIES LAST JANUARY WAS FOUND ADRIFT BY THE US COAST GUARD IN THE PACIFIC OCEAN WITH A CARGO OF 527 CHINESE REFUGEES WHO APPARENTLY WANTED TO BE SMUGGLED INTO THE US FOR NATIONAL GOVERNMENTS THE DIFFICULTY OF POLICING AND PROTECTING A VAST FREEFLOWING TRADE LIKE SHIPPING IS PLAINLY EVIDENT FROM THE DECK OF A SINGAPORE POLICE COAST GUARD LAUNCH AS THE 45FOOT PATROL BOAT BOUNCES OVER THE CITYSTATE'S CHOPPY WATERS ON A WARM DRIZZLY AFTERNOON SIX POLICEMEN ON BOARD ARE ON CONSTANT LOOKOUT FOR SUSPICIOUS MOVEMENTS IN THE HARBOR BUT IT IS HARD TO DISCERN MOVEMENT HUGE VESSELS WAITING TO BE LOADED OR UNLOADED FILL THE HARBOR AND A RADAR SCREEN BESIDE THE CAPTAIN IS CLUTTERED WITH YELLOW DOTS DENOTING SHIPS AT ANCHOR SUDDENLY A SKIFF DARTS ACROSS THE LAUNCH'S PROW HEADING PAST A SMALL ISLAND INTO PHILLIP CHANNEL A NARROW STRETCH OF INDONESIAN WATERS WHERE PIRACY WAS RAMPANT LAST YEAR HE'S ONLY ONE GUY SO WE WON'T STOP HIM SAYS CHIN FOOK LEONG DEPUTY COMMANDER OF THE POLICE COAST GUARD SUCH VIGILANCE HAS KEPT PIRACY OUT OF SINGAPORE AND MADE IT A HAVEN FOR SHIPS ABOARD THE 440FOOT EAGLE CLOUD THE CREW HAS TAKEN MEASURES OF ITS OWN TO KEEP PIRATES AT BAY UNTIL THEY REACH THE SAFETY OF SINGAPOREAN WATERS THEY HAVE INSTALLED HEAVY METAL BARS OVER ALL GLASS WINDOWS AND PUT IN EXTRA STEEL DOORS TO THE BRIDGE STEEL CABLES HOLD DOWN HATCHES ON THE BOW AND STERN AND AT NIGHT A MOTION SENSOR TURNS ON BRILLIANT HALOGEN LIGHTS OVER GANGWAYS LEADING TO THE BRIDGE WHEN THE SHIP IS AT ANCHOR IT SWITCHES ON THE PUMPS TO ITS FIRE HOSES IN AN ATTACK THE CREW WOULD ATTEMPT TO WASH THE INTRUDERS OFF THE SHIP WITH THE HIGHPOWERED WATER JETS THE EAGLE CLOUD'S AVUNCULAR WHITEHAIRED MASTER CAPT JUDGE HAS FAIRLY WELL THOUGHT THROUGH HOW HE WOULD HANDLE A PIRATE ATTACK NOT BE A HERO SINCE LAST YEAR HIS 55YEAROLD WIFE DOROTHY HAS SAILED WITH HIM KNITTING IN HER CABIN AND READING TRUELIFE TALES OF SERIAL KILLERS DRAWING ON HER KNOWLEDGE OF CRIME SHE SAYS THAT SURRENDER WOULD BE THE ONLY REAL OPTION IF CONFRONTED BY PIRATES IF THEY TURN UP AT THE SIDE WINDOWS WITH A GUN YOU OPEN THE DOOR SHE SAYS OR YOU DIE OR HIT THE DECK HER HUSBAND NOTES WITH A TOUCH OF URBAN BRAVADO MRS JUDGE SAYS SHE DOESN'T FEAR PIRATES PEOPLE BACK HOME DIDN'T BELIEVE THERE WAS ANY SUCH THING AS MODERNDAY PIRATES SHE SAYS BUT I TELL THEM IT'S NOTHING REALLY IF I WAS IN ENGLAND I COULD EASILY BE RAPED ROBBED AND MURDERED SHORTLY AFTER LUNCH ON THE DAY THE EAGLE CLOUD IS DUE IN SINGAPORE CAPT JUDGE MUST DECIDE HOW CLOSE TO TAKE THE VESSEL TO INDONESIA'S BINTAN ISLAND A MANGROVECLAD SPOT KNOWN AS A PIRATE HAVEN THE CAPTAIN DRAWS HIS FINGER ACROSS A CHART GAZES AT THE BRIGHT MORNING SUN AND DECIDES TO PULL CLOSER TO THE ISLAND AND TRIM 45 MINUTES FROM THE JOURNEY IT'S BROAD DAYLIGHT HE TELLS HIS CHIEF OFFICER I DON'T THINK THEY'LL BE BOLD ENOUGH TO COME AFTER US NOW IT IS A SAFE CALL AS THE SHIP ROUNDS BINTAN ISLAND A LONG LINE OF SHIPS COMES INTO VIEW CONTAINER SHIPS TANKERS BULK CARRIERS SOME HEADING WEST TO SINGAPORE OTHERS EAST INTO THE SOUTH CHINA SEA FOR NOW THEY'RE SAFE SAYS CAPT JUDGE BUT AT NIGHT ANY OF THEM COULD BE A PIRATE'S DREAM