MORE THAN 1500 HARDWORKING PROCRASTINATORS RECENTLY FOUND TIME TO CLIMB OUT OF THEIR FILEFOLDERCOVERED BASEMENT FLOORS PAPERWORKCLUTTERED BEDROOMS AND TINY OFFICECLOSETS TO VIE FOR A TITLE MANY PEOPLE WOULDN'T WANT THE MOST DISORGANIZED HOME OFFICE IN A CONTEST SPONSORED BY HOME OFFICE COMPUTING MAGAZINE APPLICANTS HAD TO WRITE IN FEWER THAN 200 WORDS WHY THEIR WORKPLACE IS THE MOST CHAOTIC AND SUPPLY A PHOTO OF THE OFFENDING OFFICE ONE SELFPROCLAIMED QUALIFIED ENTRANT DALE DAWSON OF RESTON VA WRITES THAT HE WAS SO DISORGANIZED HE COULDN'T FIND HIS CAMERA FOR THE REQUIRED PHOTO HE DREW A PICTURE OF HIS OFFICE INSTEAD AND INCLUDED IT WITH HIS ENTRY WHICH IN HIS APPARENT STATE OF CONFUSION WAS DATED FEBRUARY 1991 WILLIAM CAMPBELL GRANTS PASS ORE SAID HE DIDN'T HAVE TIME TO LOOK FOR HIS MISPLACED ESSAY BECAUSE HE WAS WORKING ON HIS INCOME TAX FROM TWO YEARS AGO MANY OF THE ENTRANTS WERE SELFCONGRATULATORY IN THEIR ESSAYS EXPRESSING GRATITUDE FOR THE CHANCE TO FINALLY BE ABLE TO ENTER A CONTEST THEY WERE QUALIFIED FOR DAVID EGGIMAN OF FORT WAYNE IND CALLED HIMSELF ORGANIZATIONALLY IMPAIRED WHILE ANOTHER ENTRANT DEBBIE MELONE OF PITTSBURGH PROFESSED TO BEING A CERTIFIED MESSAHOLIC TWO DISORGANIZED ENTRANTS SUBMITTED HANDWRITTEN ESSAYS ON TOILET PAPER ONE PROCLAIMED THAT IT WAS THE ONLY CLEAN SHEET OF PAPER I COULD FIND IN THIS MESS ENTRANT ROSS D GOLDBERG OF PHILADELPHIA WROTE IF ANYONE WERE ORGANIZED ENOUGH TO ENTER THIS CONTEST THEY SHOULD BE DISQUALIFIED BUT HE CALLED HIS ENTRY PROCRASTINATION FROM WORK WHICH THEREFORE CONTRIBUTES TO BASIC DISORGANIZATION NICK SULLIVAN SENIOR EDITOR OF THE MAGAZINE AND ONE OF THE CONTEST JUDGES SAYS ON THE DAY OF THE DEADLINE THERE WERE PEOPLE WALKING IN HAND DELIVERING THE ENTRIES MANY CALLERS WERE ASKING FOR EXTENSIONS THE SLOVENLY SOUL WHO IS AWARDED THE DISTINGUISHED TITLE OF MOST DISORGANIZED HOME OFFICE WORKER WILL BE NAMED IN THE AUGUST ISSUE OF THE NEW YORKBASED MAGAZINE THE WINNING ENTRANT WILL RECEIVE A 4000 CUSTOMDESIGNED HOME OFFICE NOT EVERYONE WHO WAS OTHERWISE QUALIFIED WAS ABLE TO COMPETE MORE THAN 500 PEOPLE CLAIMING TO BE TOO DISORGANIZED TO BE ON TIME FOR THE APRIL 30 DEADLINE WERE DISQUALIFIED 9306020151 930602 PEOPLE PATTERNS BY DIANE CRISPELL OF AMERICAN DEMOGRAPHICS MAGAZINE THE BABY BOOMLET IS SHOWING SIGNS OF SUBSIDING BIRTHS IN THE US LAST YEAR TOTALED 4084000 ACCORDING TO THE NATIONAL CENTER FOR HEALTH STATISTICS IT WAS THE FOURTH YEAR IN A ROW THAT MORE THAN FOUR MILLION BABIES WERE BORN APPROACHING THE BABY BOOM'S PEAK LEVELS OF THE LATE 1950S AND EARLY 1960S EVEN SO THE BOOMLET PROBABLY WON'T REACH THE LEVELS OF THE ORIGINAL BOOM THE NUMBER OF BIRTHS FELL ONLY 07 IN 1992 FROM A YEAR EARLIER BUT IT WAS THE SECOND DROP IN A ROW SOMETHING THAT HADN'T HAPPENED SINCE THE TROUGH OF THE BABY BUST IN THE EARLY 1970S CENSUS BUREAU POPULATION PROJECTIONS PUBLISHED EARLIER THIS YEAR ASSUME THAT BIRTHS WILL FALL BELOW FOUR MILLION THIS YEAR AND REMAIN AROUND 38 MILLION TO 39 MILLION UNTIL 2007 WHEN THE BABY BOOMLET GENERATION BEGINS TO HAVE ITS OWN CHILDREN IN SUBSTANTIAL NUMBERS MARTIN O'CONNELL A FERTILITY SPECIALIST AT THE CENSUS BUREAU SAYS THE NEW PROJECTIONS WILL HOLD UP BETTER THAN ONES FROM BEFORE THE HEIGHT OF THE BABY BOOMLET THE OLDER PROJECTIONS SEVERELY UNDERESTIMATED THE NUMBER OF CHILDREN THAT WOULD BE BORN IN THE LATE 1980S AND EARLY 1990S IN PART MR O'CONNELL SAYS BECAUSE THE BUREAU MISTAKENLY ASSUMED IMMIGRANTS WOULD IMMEDIATELY ADOPT THE LOWER FERTILITY RATES OF NATIVEBORN AMERICANS THIS ERROR WAS COMPOUNDED BY HIGHER IMMIGRATION LEVELS THAN EXPECTED MORE THAN A HALFMILLION CHILDREN WERE BORN TO IMMIGRANT WOMEN IN THE US IN 1991 A SUBSTANTIAL SHARE OF THE TOTAL MR O'CONNELL SAYS THE BUREAU'S MOST RECENT POPULATION PROJECTIONS TAKE INTO ACCOUNT IMMIGRANTS' HIGHERTHANAVERAGE FERTILITY HE ADDS FOR SPORTS MARKETERS CONCENTRATING ON HARDCORE ATHLETES ISN'T ALWAYS THE BEST GAME PLAN FIRSTTIME BUYERS WHO ARE NOVICES IN A SPORT ACCOUNT FOR A LARGE SHARE OF ALL SPORTINGGOODS PURCHASES ACCORDING TO A SURVEY CONDUCTED LAST FALL BY AMERICAN SPORTS DATA A HARTSDALE NY FIRM SPECIALIZING IN SPORTS RESEARCH HARVEY LAUER THE FIRM'S PRESIDENT SAYS PEOPLE JUST STARTING OUT ARE OFTEN ENTHUSIASTIC ABOUT TRYING OUT NEW EQUIPMENT AND CAN LEAD IN THE ADOPTION OF INNOVATIVE PRODUCTS PEOPLE WHO AREN'T BEGINNERS BUT WHO DON'T PLAY A PARTICULAR SPORT REGULARLY REPRESENT AN EVEN LARGER SHARE OF THE SPORTS EQUIPMENT MARKET MR LAUER SAYS PEOPLE WHO SKI FEWER THAN 12 TIMES A YEAR FOR EXAMPLE ACCOUNT FOR HALF OF ALL SKI SALES PEOPLE WHO PLAY TENNIS FEWER THAN 25 TIMES A YEAR BUY NEARLY HALF OF ALL RACKETS AND PEOPLE WHO GOLF FEWER THAN 25 TIMES A YEAR MAKE UP ABOUT HALF OF THE MARKET FOR GOLF CLUB SETS MR LAUER SAYS THE SPORTINGGOODS INDUSTRY TENDS TO NEGLECT INFREQUENT PLAYERS WHO ARE OFTEN WOMEN OR OLDER ADULTS MORE THAN HALF OF ALL GOLFCLUB SETS ARE PURCHASED FOR PEOPLE 35 AND OLDER WHILE 40 OF TENNIS RACKETS AND 36 OF SKIS ARE BOUGHT FOR WOMEN THE YOUNGER CROWD ALSO FIGURES IN FORTY PERCENT OF TENNIS RACKETS ARE PURCHASED FOR PEOPLE UNDER AGE 18 IT'S TIME TO LOOK BEYOND 18 TO 34YEAROLD MALES MR LAUER SAYS MIDDLEINCOME COUPLES THAT HAD BABIES LAST YEAR WILL SPEND AN AVERAGE OF 128670 RAISING THEM A GOVERNMENT STUDY SAYS AND THAT EXCLUDES COLLEGE MARK LINO AN ECONOMIST WITH THE AGRICULTURE DEPARTMENT'S FAMILY ECONOMICS RESEARCH GROUP PRODUCED ESTIMATES OF THE COST IN 1992 DOLLARS OF RAISING CHILDREN TO THE AGE OF 18 HE FIGURES MIDDLEINCOME COUPLES WILL SPEND 5 MORE ADJUSTED FOR INFLATION ON BABIES BORN LAST YEAR THAN ON THOSE BORN A DECADE EARLIER THOUGH BABIES REQUIRE MUCH SPECIAL EQUIPMENT CHILDREN GENERALLY COST MORE AS THEY GET OLDER BASED ON 1992 SPENDING MR LINO SAYS A MIDDLEINCOME COUPLE'S CHILDREARING COSTS RISE FROM 6610 A YEAR FOR A CHILD UNDER AGE THREE TO 7010 FOR A CHILD AGES THREE TO FIVE COSTS DECLINE SLIGHTLY FOR CHILDREN SIX TO EIGHT YEARS OLD TO 6960 AND FOR KIDS NINE TO 11 YEARS OLD TO 6770 THEY RISE AGAIN ONCE CHILDREN HIT THE TEEN YEARS MIDDLEINCOME COUPLES SPENT AN ESTIMATED 7540 ON 12 TO 14YEAROLDS AND 8000 ON 15 TO 17YEAROLDS IN 1992 HOUSING COSTS ARE LOWER FOR OLDER CHILDREN PROBABLY BECAUSE THEIR PARENTS ARE MORE LIKELY TO HAVE BEEN HOMEOWNERS FOR A WHILE AND TO HAVE LOWER MORTGAGE PAYMENTS EDUCATION AND CHILDCARE COSTS ARE HIGHEST FOR CHILDREN THREE TO FIVE THE PEAK AGES FOR PRESCHOOLS AND DAY CARE OUTOFPOCKET SPENDING ON HEALTH CARE DOESN'T VARY MUCH WITH A CHILD'S AGE BUT FOOD CLOTHING AND TRANSPORTATION COSTS ALL RISE STEADILY AS A CHILD GETS OLDER PARENTS CAN EXPECT TO SPEND ABOUT TWICE AS MUCH FEEDING A TEEN AS A TODDLER AND ALMOST TWICE AS MUCH ON CLOTHING THERE IS SOME GOOD NEWS IN THE ESTIMATES ONCE A COUPLE HAS TWO CHILDREN A THIRD DOESN'T COST THAT MUCH MORE MR LINO FINDS THAT MIDDLEINCOME MARRIED COUPLES WHO HAVE A CHILD UNDER TWO YEARS OLD CAN EXPECT TO SPEND 8000 A YEAR ON THAT CHILD ADD A 16YEAROLD AND SPENDING NEARLY DOUBLES TO 14850 BUT IF A 13YEAROLD ENTERS THE PICTURE COSTS GROW ONLY 19 MORE TO 17640 SEVEN IN 10 AMERICANS WHO PLAN TO BUY A CAR IN THE NEXT YEAR SAY THEY WOULD PREFER TO BUY AMERICAN FINDS A SURVEY BY CHILTON RESEARCH SERVICES RADNOR PA NINE PERCENT WOULD PREFER A FOREIGN CAR AND THE REST SAY IT DOESN'T MATTER BUT ONLY 52 SAY AMERICAN CARS MATCH IMPORTS IN QUALITY CHILDREN WHO LIVE WITH ONE PARENT ARE BETTER OFF WITH A SAMESEX PARENT CONVENTIONAL WISDOM HOLDS BUT SOCIOLOGISTS BRIAN POWELL OF INDIANA UNIVERSITY AND DOUGLAS DOWNEY OF WICHITA STATE UNIVERSITY SURVEYED 4000 EIGHTHGRADERS NATIONWIDE AND FOUND THIS OFTEN ISN'T TRUE IN FACT THEY SAW SIGNS AN OPPOSITESEX PARENT CAN BE AN ADVANTAGE FOR A CHILD'S EDUCATION 9306020150 930602 US AGENCY BACKS PLAN FOR TREASURY TO SELL SOME BONDS INDEXED TO INFLATION BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE CONGRESSIONAL BUDGET OFFICE GAVE A BOOST TO A LONGSTANDING PROPOSAL THAT THE TREASURY DEPARTMENT SELL SOME BONDS INDEXED TO INFLATION IN A REPORT ON FEDERAL DEBT AND INTEREST COSTS THE CBO SAID THE SALE OF INDEXED BONDS BY THE TREASURY WOULD PROTECT INVESTORS FROM INFLATION MAKE IT IMPOSSIBLE FOR THE GOVERNMENT TO INFLATE AWAY THE REAL VALUE OF ITS DEBT AND PROVIDE HELPFUL SIGNALS TO ASSIST THE CONDUCT OF MONETARY POLICY INDEXED TREASURY BONDS IF WIDELY AVAILABLE AND FREELY TRADED WOULD HELP THE FEDERAL RESERVE MONITOR INFLATION EXPECTATIONS THE AGENCY SAID PRINCIPAL AND INTEREST ON SUCH BONDS WOULD BE ADJUSTED TO TAKE ACCOUNT OF INFLATION AND THE EXACT DESIGN OF ANY SUCH PROGRAM WOULD DEAL WITH SUCH VARIABLES AS THE CHOICE OF AN INFLATION INDEX TAX TREATMENT AND MATURITIES THE TREASURY HAS AUTHORITY TO SELL INDEXED BONDS BUT HAS REJECTED THE IDEA IN THE PAST OFFICIALS SAID THE PROPOSAL ISN'T UNDER ACTIVE REVIEW THE CBO ALSO SAID CHANGES IN REGULATION AND TREASURY AUCTION PROCEDURES HAVE SCANT POTENTIAL TO AFFECT FUTURE INTEREST COSTS THE TREASURY CITING THE POSSIBILITY OF LOWER BORROWING COSTS LAST SUMMER BEGAN TESTING THE SOCALLED DUTCH AUCTION TECHNIQUE UNDER WHICH ALL SUCCESSFUL BIDDERS OBTAIN SECURITIES AT THE SAME PRICE RESULTS TO DATE HAVE BEEN INCONCLUSIVE OFFICIALS REPORT THE CBO SAID THE TREASURY'S RECENT SHIFT IN ITS FINANCING MIX TO SHORTERTERM SECURITIES ISN'T LIKELY TO HAVE ANY STRIKING EFFECTS ON INTEREST RATES THE TREASURY IN MAY ANNOUNCED IT WAS HALTING THE SALE OF SEVENYEAR NOTES AND WOULD SELL 30YEAR BONDS ONLY TWICE A YEAR INSTEAD OF QUARTERLY THE CBO SAID THESE MOVES HAVE THE EFFECT OF SHIFTING SOME 55 BILLION A YEAR TO SHORTERTERM SECURITIES THE CBO RECENTLY ESTIMATED THE TREASURY'S BORROWING MIX SHIFT WILL SAVE SOME 64 BILLION DURING THE 19941998 PERIODCOMPARED WITH THE CLINTON ADMINISTRATION'S ESTIMATED SAVINGS OF 108 BILLION DURING THE PERIOD THE ADMINISTRATION AND THE CBO USED DIFFERENT ASSUMPTIONS THE CBO SAID PRESIDENT CLINTON'S OVERALL BUDGET PROPOSALS WOULD CURTAIL BUT NOT ARREST THE GROWTH OF DEBT AND INTEREST COSTS IT SAID NET INTEREST COSTS WILL REACH 211 BILLION IN FISCAL 1994 SURGE TO 293 BILLION IN FISCAL 1998 AND TOP 400 BILLION SOON AFTER THE TURN OF THE CENTURY IF POLICIES REMAIN UNCHANGED UNDER PRESIDENT CLINTON'S BUDGET PROPOSALS INTEREST COSTS IN 1998 WOULD BE ABOUT 17 BILLION LESS THAN THE CBO'S BASELINE OR 276 BILLION THE CBO SAID FOREIGN HOLDINGS OF FEDERAL DEBT JUMPED TO 498 BILLION IN 1992 FROM 122 BILLION IN 1980 BUT THAT THE PERCENTAGE OF FOREIGNHELD DEBT WAS LITTLE CHANGED IN THOSE YEARS THE REPORT SAID US STATE AND LOCAL GOVERNMENTS ARE THE LARGEST HOLDERS OF FEDERAL SECURITIES OWNING ALMOST 18 OF DEBT OUTSTANDING FOREIGN INVESTORS BOTH GOVERNMENT AND PRIVATE HOLD 166 FOLLOWED BY THE FEDERAL RESERVE SYSTEM 99 INDIVIDUALS 94 COMMERCIAL BANKS 9 PRIVATE PENSION FUNDS 72 INSURANCE COMPANIES 62 CORPORATIONS 6 MUTUAL FUNDS 48 MONEY MARKET FUNDS 26 AND 105 BY OTHERS 9306020149 930602 WHO'S NEWS DUTY FREE INTERNATIONAL INC DUTY FREE INTERNATIONAL INC RIDGEFIELD CONN JACK AFRICK 65YEAROLD DIRECTOR WAS APPOINTED VICE CHAIRMAN MR AFRICK RECENTLY RETIRED AS VICE CHAIRMAN OF UST INC A GREENWICH CONN MAKER OF WINES AND SMOKELESS TOBACCO PRODUCTS 9306020148 930602 TAX REPORT A SPECIAL SUMMARY AND FORECAST OF FEDERAL AND STATE TAX DEVELOPMENTS BY GAUTAM NAIK DIVIDEND STRATEGIES BY CORPORATIONS MAY BE CRIMPED BY AN IRS PROPOSAL MANY CORPORATIONS INVEST IN DIVIDENDGENERATING SECURITIES BECAUSE OF ATTRACTIVE TAX TREATMENT SEVENTY PERCENT OF DIVIDENDS FROM COMMON STOCK CAN BE EXCLUDED PROVIDED THE SHARES ARE HELD FOR AT LEAST 46 DAYS AND ARE EXPOSED TO MARKET RISK MANY COMPANIES HEDGE THAT RISK FOR INSTANCE BY SELLING SHORT A POSITION IN A SIMILAR COMPANY FIGURING THE TWO STOCK PRICES WOULD MOVE IN TANDEM AND PROTECT AGAINST ANY INVESTMENT LOSS IT'S BEEN A VERY POPULAR STRATEGY NOTES BILL ROGERS OF DELOITTE & TOUCHE BUT A PROPOSED IRS CHANGE IN ITS ANTIABUSE RULES WOULD DENY THE ATTRACTIVE TAX TREATMENT TO INVESTMENTS THAT ARE HEDGED THAT WAY INSISTING INVESTORS HAVEN'T INCURRED THE REQUIRED DAYS OF MARKET RISK AS A RESULT COMPANIES THAT CHOOSE TO CONTINUE TO HEDGE WILL PAY MUCH HIGHER TAXES ON DIVIDENDS MR ROGERS SAYS CURRENT TREATMENT EXCLUDES 70 OF EVERY 100 OF DIVIDENDS AND TAXES THE REMAINDER AT 34 FOR AN EFFECTIVE RATE OF 102 ON DIVIDEND INCOME UNDER THE IRS CHANGE HOWEVER ALL HEDGED DIVIDEND INCOME WOULD BE TAXED AT THE 34 CORPORATE RATE TAX DEADBEATS GET SOME SUCCOR FROM A FRIENDLIER IRS THE MOST RECENT FIGURES SHOW THE IRS RECOVERED 83 MILLION OUT OF A TOTAL OF 574 MILLION OF TAX LIABILITY OWED OR SETTLED FOR 145 CENTS ON THE DOLLAR COMPARED WITH 35 CENTS A YEAR AGO SAYS SIDNEY WEINMAN OF THE RESEARCH INSTITUTE OF AMERICA THE IRS TOOK ON A MORE FAVORABLE POSTURE A YEARANDAHALF AGO THEY ALSO HAD LARGE AMOUNTS OF UNCOLLECTED TAXES WHICH PROMPTED THE SERVICE TO SETTLE FOR SMALLER AMOUNTS ALSO FOR MOST DEBTS UNDER 10000 TAXPAYERS NO LONGER MUST PROVIDE FINANCIAL STATEMENTS AND THE IRS DOESN'T FILE TAX LIENS WHICH MEANS TAXPAYERS' CREDIT RATINGS AREN'T HURT DEATH AND TAXES DIDN'T PROVIDE AN ESCAPE FOR DESIGNER DONNA KARAN IN 1986 DESIGNER KARAN AND HER HUSBAND INVESTED IN A PLAN TO EXCHANGE UNIMPROVED CEMETERY LAND FOR FINISHED GRAVE SITES PRODUCING A LONGTERM CAPITAL GAIN BY DONATING THE SITES TO CHARITY THEY THEN CLAIMED A CHARITABLE DEDUCTION THEY PAID 14400 TO EXCHANGE LAND FOR 450 GRAVE SITES AND PAID THE VENTURE'S ORGANIZER A 14600 FEE THE GRAVE SITES WERE DONATED TO NEW HOPE BAPTIST CHURCH YOUNGSTOWN OHIO ALTHOUGH THE IRS IN PAST YEARS HAD ALLOWED A SIMILAR PLAN IT CHALLENGED THE COUPLE'S 190350 CHARITABLE DEDUCTION WHICH VALUED THE SITES AT 423 EACH AND THE CONSULTANT'S FEE AND SOUGHT UNDERPAYMENT PENALTIES THE TAX COURT ALLOWED THE DEDUCTION BUT VALUED THE GRAVE SITES AT KARAN'S COST OR 16501 FINDING THERE WASN'T ANY MARKET FOR THE GRAVES AT THE APPRAISED PRICE AND IT SAID THE FEE WASN'T TAX RELATED BUT THE COURT FOUND THE COUPLE WASN'T NEGLIGENT BECAUSE THEY HAD RELIED ON THEIR OWN TAX ACCOUNTANT FOR ADVICE UNDEREXPOSED A TEXAS ARTIST AND PHOTOGRAPHER CLAIMED BUSINESS DEDUCTIONS TOTALING 31000 OVER SIX YEARS BUT THE TAX COURT UPHELD AN IRS CHALLENGE NOTING THAT HE COULD SHOW ONLY 87 IN INCOME OVER THAT TIME HIS EFFORT BESPEAKS GREAT DEDICATION TO ART BUT NONE TO BUSINESS THE COURT SAID LEST YOU FORGET THE US TREASURY HISTORICAL ASSOCIATION IS OFFERING A 1993 ORNAMENT COMMEMORATING THE 80TH ANNIVERSARY OF THE 16TH AMENDMENT WHICH AUTHORIZED THE COLLECTION OF THE INCOME TAX IT IS A REPLICA OF THE FIRST FORM 1040 ALONG WITH THE SLOGAN MANY HAPPY RETURNS IT COSTS 11 A GROCERY CHAIN WANTS TO DONATE 1 OF ANNUAL SALES TO COMMUNITY PROJECTS FIGURING THE WELLADVERTISED PROGRAM WILL HELP INCREASE ITS MARKET SHARE THE IRS ALLOWS THE ENTIRE COST AS A BUSINESS EXPENSE AS A FORM OF GOODWILL THAT KEEPS THE COMPANY'S NAME BEFORE THE PUBLIC MINIMUM TAXPAYERS MAY GET SOME RELIEF ON THEIR CHARITABLE CONTRIBUTIONS INDIVIDUALS OR CORPORATIONS THAT AVOID TAXES THROUGH VARIOUS STRATEGIES STILL FACE THE ALTERNATIVE MINIMUM TAX INTENDED TO MAKE SURE THEY PAY SOMETHING TAXPAYERS MUST ADD BACK CERTAIN INCOME AND EXPENSE ITEMS THAT GET SPECIAL TAX TREATMENT AND PAY THE ALTERNATIVE TAX IF IT IS HIGHER THAN UNDER THE REGULAR METHOD BUT A RECENT IRS NATIONAL OFFICE RULING PROVIDED SOME BREATHING ROOM THE COUPLE HAD NO INCOME USING THE REGULAR METHOD BUT PAID TAX UNDER THE ALTERNATIVE METHOD THEY FILED AN AMENDED RETURN CLAIMING A CHARITABLE CONTRIBUTION WHICH THE IRS ALLOWED THE SIGNIFICANT PROTAXPAYER OPINION COULD AID CORPORATIONS THAT FACE THE ALTERNATIVE MINIMUM TAX AS WELL SUGGESTS SAM STARR OF COOPERS & LYBRAND MANY COULD CLAIM A REFUND WHEN CONTRIBUTIONS ARE CONSIDERED HE SAYS IN THE LAST THREE YEARS ABOUT HALF OF ALL COMPANIES HAVE PAID UNDER THE ALTERNATIVE METHOD MR STARR SAYS BRIEFS A NOVEL PLAN BY JERSEY CITY NJ TO PRIVATELY SELL A BUNDLE OF PROPERTY TAX LIENS WINS COUNCIL APPROVAL RAISING ABOUT 25 MILLION AND PERMITTING A 213 PER 1000 CUT IN THE TAX RATE 9306020147 930602 BATTLE TO OPEN TOKYO MARKETS HEATS UP BY QUENTIN HARDY STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE BATTLE TO PRY OPEN JAPAN'S TIGHTLY REGULATED FINANCIAL MARKETS IS ENTERING A NEW ROUND PRESIDENT CLINTON'S TRADE NEGOTIATORS ARE MUCH MORE AGGRESSIVE THAN THE PREVIOUS ADMINISTRATION SAYS A US SECURITIES EXECUTIVE THEY'RE GOING TO BE REAL TABLETHUMPERS ALTHOUGH SOME AREAS OF JAPAN'S FINANCIAL MARKETS HAVE ALREADY BEEN OPENED SUCH AS THE SECURITIES INDUSTRY FOREIGN FIRMS SAY THERE'S STILL QUITE A WAY TO GO THE CLINTON ADMINISTRATION NOW IS LOBBYING FOR GREATER ACCESS TO POTENTIALLY LUCRATIVE MARKETS SUCH AS PENSION FUND MANAGEMENT INSURANCE AND CORPORATE FINANCE UNDERWRITING THE POTENTIAL PAYOFF IS HUGE JAPAN'S INSURANCE INDUSTRY FOR EXAMPLE HAS ABOUT 155 TRILLION YEN 144 TRILLION IN ASSETS AND PENSION FUNDS ARE ESTIMATED AT 728 BILLION NONJAPANESE FIRMS NOW HAVE AT BEST 1 OF EACH MARKET THE NEW TEAM OF NEGOTIATORS ALSO WANTS JAPAN TO PERMIT GREATER USE OF EQUITY DERIVATIVES SUCH AS FUTURES AND OPTIONS US FIRMS DOMINATE TRADING TECHNOLOGY IN THOSE AREAS AND THE LOCAL ARMS OF GOLDMAN SACHS & CO MORGAN STANLEY GROUP INC AND SALOMON INC HAVE PROFITED IN TRADING THE DERIVATIVES THAT ARE ALREADY ALLOWED THEY'RE NOW PLEADING FOR GREATER FREEDOM IT COULD MAKE FOR A TOUGH FIGHT JAPAN'S FINANCIAL PROBLEMS DURING THE PAST COUPLE OF YEARS INCLUDING A CRASH IN REALESTATE PRICES PILES OF NONPERFORMING LOANS AT BANKS AND A TOKYO STOCK MARKET THAT UNDERWENT A PRECIPITOUS CRASH HAVE MADE JAPANESE REGULATORS INCREASINGLY CONSERVATIVE FOR EXAMPLE THE REGULATORS BLAME THE USE OF DERIVATIVES FOR THE STOCK MARKET COLLAPSE SO THEY'RE NOT EAGER TO PERMIT WIDER USE OF THE INSTRUMENTS THE AMERICANS AREN'T PEACEFUL COMPLAINS A SENIOR JAPANESE GOVERNMENT ADVISER THEY'RE DEMANDING THEY WANT EVERYTHING ON MAY 25 THERE WAS SOME INITIAL CONTACT BETWEEN THE TWO SIDES THE US TREASURY SECRETARY FOR INTERNATIONAL AFFAIRS LAWRENCE SUMMERS MET WITH HIS JAPANESE COUNTERPART TADAO CHINO VICE FINANCE MINISTER FOR INTERNATIONAL AFFAIRS THE TWO SIDES ARE LOOKING FOR AREAS OF COMPROMISE BEFORE THE GROUP OF SEVEN INDUSTRIALIZED NATIONS MEET IN TOKYO IN JULY THE TALKS ALSO INVOLVE EASING RESTRICTIONS ON CROSSBORDER CAPITAL FLOWS SUCH AS MERGERS AND ACQUISITIONS LIBERALIZING THE MARKET FOR FOREIGN INSURANCE COMPANIES AND EASING REGULATIONS ON FOREIGN BANKS' ACTIVITIES IN JAPAN FOREIGN FIRMS HAVE ALREADY MADE INROADS IN SOME OF THESE AREAS AND JAPANESE REGULATORS INSIST THE LIBERALIZATIONS THE US WANTS ARE ALREADY UNDER WAY BUT AS FOR MORE SUBSTANTIVE CHANGES PROGRESS IS LIKELY TO BE SLOW JAPANESE REGULATORS DON'T LIKE DERIVATIVES IN PART BECAUSE MANY OF THE PRODUCTS CAN BE USED TO CIRCUMVENT THE RULES A RIGHT TO BUY A STOCK WHICH SOME KINDS OF DERIVATIVES OFFER CAN GET A COMPANY AROUND STOCKOWNERSHIP REGULATIONS FOR EXAMPLE THAT LEAVES THE REGULATORS WITH LESS CONTROL OVER THE MARKET FINANCIAL ANALYSTS ARGUE THOUGH THAT JAPANESE COMPANIES COULD BENEFIT FROM A BIGGER DERIVATIVES MARKET THIS IS SOMETHING JAPANESE COMPANIES NEED SAYS ALICIA OGAWA ANALYST AT SALOMON BROTHERS ASIA LTD DEREGULATION IS ONLY HALFDONE IN JAPAN SHE ARGUES THEREFORE WHILE MARKETS ARE MORE LIVELY BECAUSE OF EARLIER STEPS TO LIBERALIZE COMPANIES DON'T HAVE ACCESS TO CERTAIN BENEFITS SUCH AS THE FINANCIAL PROTECTION DERIVATIVES CAN PROVIDE THE VOLATILITY IS THERE THE PROTECTION ISN'T SAYS MS OGAWA 9306020146 930602 BUSINESS BRIEF SETTLEMENT APPROVED FOR RAILROADS TO PAY EXCESS CHARGES TO US WASHINGTON A FEDERAL DISTRICT COURT APPROVED A SETTLEMENT REQUIRING EIGHT RAILROADS TO REIMBURSE THE US GOVERNMENT MORE THAN 8 MILLION IN EXCESS FREIGHT CHARGES FROM SHIPMENT OF SPENT NUCLEAR FUEL ASSEMBLIES BETWEEN 1975 AND 1988 THREE OF THE CARRIERS UNION PACIFIC RAILROAD CO CSX TRANSPORTATION CORP AND BURLINGTON NORTHERN RAILROAD CO REPRESENT MORE THAN THREEQUARTERS OF THE SETTLEMENT THE SETTLEMENT CONCLUDES A PROCEEDING THAT BEGAN AT THE INTERSTATE COMMERCE COMMISSION IN 1978 WHEN THE GOVERNMENT SOUGHT TO RECOVER RAILFREIGHT CHARGES FOR THE SHIPMENT OF SPENT NUCLEAR FUEL ASSEMBLIES AND OTHER MATERIALS FROM US NAVY SHIPS TO INLAND STORAGE FACILITIES THE RAILROADS HAD REQUIRED THAT THE SHIPMENTS BE CARRIED AS THE SOLE FREIGHT ON SPECIAL TRAINS BUT THE ICC DECIDED THAT THE SPECIAL TRAINS WERE ILLEGAL AND ORDERED THE CARRIERS TO REPAY THE EXTRA CHARGES WHEN THE RAILROADS FAILED TO MAKE THE PAYMENTS THE US ATTORNEY SUED THE CARRIERS IN JANUARY 1992 FOR 63 MILLION IN OVERCHARGES PLUS 17 MILLION IN INTEREST A SPOKESMAN FOR CSX TRANSPORTATION A UNIT OF CSX CORP SAID WE ARE DISAPPOINTED IN THE OUTCOME OF THIS JUDICIAL PROCEEDING BUT WE WILL ABIDE BY THE RULING WE STILL MAINTAIN THAT THIS COMMODITY SHOULD BE TRANSPORTED IN SPECIAL TRAIN SERVICE HE ADDED THAT CSX NOW TRANSPORTS SPENT NUCLEAR FUEL ASSEMBLIES IN NORMAL TRAIN SERVICE CSX'S PORTION OF THE SETTLEMENT IS ABOUT 2 MILLION A SPOKESMAN FOR UNION PACIFIC RAILROAD A UNIT OF UNION PACIFIC CORP SAID THE SETTLEMENT REPRESENTS ABOUT THREEQUARTERS OF THE VALUE OF THE ORIGINAL CLAIM IT SAID SUBSTANTIAL COMPROMISES WERE MADE BY BOTH SIDES TO REACH THE AGREEMENT UNION PACIFIC'S PART OF THE SETTLEMENT IS ABOUT 3 MILLION BURLINGTON NORTHERN A UNIT OF BURLINGTON NORTHERN INC DIDN'T PROVIDE A COMMENT ITS PORTION IS 16 MILLION 9306020144 930602 PEPPERAND SALT WE CAN PRAISE WITH FAINT DAMNATION TO KEEP SOLVENT TILL I GET THERE SOUP MAGNATE BOUILLONAIRE 9306020143 930602 CLINTON MOVING TOWARD CENTER SAYS SENATE TO CUT BUDGET'S TAXES OUTLAYS BY JEFFREY H BIRNBAUM AND MICHAEL K FRISBY STAFF REPORTERS OF THE WALL STREET JOURNAL THE CLINTON ADMINISTRATION TOOK TWO MORE STEPS TOWARD THE POLITICAL MIDDLE AND MIGHT BE ABOUT TO TAKE A THIRD IN MILWAUKEE YESTERDAY PRESIDENT CLINTON CONCEDED THAT THE SENATE WILL CUT THE TAXES IN HIS BUDGET PLAN AND FIND MORE SPENDING REDUCTIONS AN OVERT APPEAL TO DEMOCRATIC MODERATES AND REPUBLICANS ALSO YESTERDAY WHITE HOUSE OFFICIALS SAID THAT THE NOMINATION OF LANI GUINIER MR CLINTON'S EMBATTLED NOMINEE FOR ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS IS EXPECTED TO BE WITHDRAWN IN ADDITION THE PRESIDENT IS EXPECTED TO ANNOUNCE WITHIN A WEEK A NOMINEE FOR THE US SUPREME COURT OFFICIALS SAID HE HAS ALL BUT DECIDED TO NAME A MODERATE WITH STEPHEN BREYER A BOSTON FEDERAL APPEALS COURT JUDGE A LEADING CANDIDATE MR CLINTON'S MOVE TOWARD THE CENTER BEGAN IN EARNEST LAST WEEK TO GAIN EVEN THE NARROW VICTORY FOR HIS DEFICITREDUCTION PLAN IN THE HOUSE HE HAD TO BEG FOR VOTES FROM MODERATES AND CONSERVATIVES IN HIS OWN PARTY HE PLEDGED TO THEM THAT HE WOULD MOVE HIS POLICIES IN THEIR DIRECTION THE PRESIDENT'S ACTIONS ARE IN MANY WAYS A BOW TO POLITICAL REALITY THE SENATE ALREADY WAS MOVING AGAINST MS GUINIER AND TOWARD CHANGES IN THE PRESIDENT'S BUDGET STILL ON SATURDAY MR CLINTON BEGAN FOLLOWING THROUGH ON HIS PLEDGE BY SURPRISING OFFICIAL WASHINGTON WITH THE APPOINTMENT OF A LONGTIME REPUBLICAN ADVISER DAVID GERGEN AS COUNSELOR TO THE PRESIDENT AND YESTERDAY HE CONTINUED THE TREND ALBEIT SOMEWHAT GRUDGINGLY WE'LL CUT THE TAXES AND HAVE MORE SPENDING CUTS NEXT WEEK MR CLINTON TOLD A LUNCHTIME CROWD OF 1500 AT THE MILWAUKEE EXPOSITION CONVENTION CENTER AND ARENA BUT MR CLINTON COULDN'T QUITE RESIST TOUTING THE SPENDING PORTIONS OF HIS PACKAGE LET'S LEAVE THE MONEY IN THERE THAT WILL SHAPE THESE CHILDREN'S ECONOMIC FUTURE HE SAID LET'S HAVE THE MONEY FOR EDUCATION AND TRAINING FOR INVESTMENT IN TECHNOLOGY FOR HELP FOR THE DEFENSE INDUSTRIES THAT ARE BUILDING DOWN CONCERNING MS GUINIER'S NOMINATION THE PRESIDENT WAS MOVING TOWARD A MORE CLEARCUT POSITION MS GUINIER A LAW PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA HAS BEEN UNDER FIRE FOR HER WRITINGS WHICH MODERATES AND CONSERVATIVES HAVE SAID INDICATE THAT SHE FAVORS MEASURES TO GUARANTEE BLACK PEOPLE SPECIAL TREATMENT IN THE ELECTORAL PROCESS AFTER A HIGHPROFILE ATTEMPT LAST WEEK TO DEFEND MS GUINIER'S QUALIFICATIONS AND DESPITE OFFICIAL DENIALS YESTERDAY CLINTON AIDES WERE PREPARING TO RETREAT AN ANNOUNCEMENT ABOUT THE NOMINATION OF MS GUINIER WHO IS A LONGTIME FRIEND OF HILLARY RODHAM CLINTON COULD COME SOON AIDES SAID FOR THE SUPREME COURT MR CLINTON HAS BEEN KEEPING HIS OWN COUNSEL BUT AIDES SAID HE HAD A MEETING MONDAY NIGHT IN THE WHITE HOUSE RESIDENCE AND APPEARED TO HAVE NARROWED THE LIST TO ONE OR TWO CANDIDATES WHO COULD BE PORTRAYED AS MODERATES MR BREYER HAS BEEN HIGH ON RECENT LISTS AS HAVE OTHER FEDERAL COURT JUDGES JOSE CABRANES OF NEW HAVEN CONN JON NEWMAN OF HARTFORD CONN AND GILBERT MERRITT OF NASHVILLE TENN MR CLINTON HAD HOPED TO DISCLOSE HIS CHOICE LAST WEEK BUT WAS SIDETRACKED BY THE INTENSITY OF THE HOUSE FIGHT TO PASS THE DEFICITREDUCTION BILL LOOKING TO THE SENATE MR CLINTON IN MILWAUKEE LISTED THE BASIC PRINCIPLES THAT HE WANTS THE LAWMAKERS THERE TO HONOR IN DEALING WITH THE PACKAGE THE PRESIDENT SAID IT MUST CUT THE DEFICIT BY 500 BILLION OVER FIVE YEARS AND PUT THE MONEY IN A TRUST FUND HE HAS PROPOSED AND THAT ANY TAX INCREASES MUST HIT RICH PEOPLE HARDER THAN THOSE LESS WELL OFF HE ALSO SAID THAT HE WOULDN'T ACCEPT CHANGES IN HIS HIGHER EARNEDINCOME TAX CREDIT FOR THE WORKING POOR AND SAID HE WANTS TO KEEP TAX INCENTIVES FOR BUSINESSES TO MAKE INVESTMENTS IN THE CITIES FOR RESEARCH AND FOR HOUSING 9306020142 930602 WHO'S NEWS CHEVRON CORP CHEVRON CORP SAN FRANCISCO AL CACCAMO 55 YEARS OLD WAS NAMED PRESIDENT OF THE CHEVRON INTERNATIONAL OIL CO UNIT OF THIS OIL COMPANY MR CACCAMO FORMERLY GENERAL MANAGER OF THE LIGHT PRODUCTS STRATEGIC BUSINESS UNIT SUCCEEDS ROBERT WALSH 62 WHO IS RETIRING EFFECTIVE AUG 1 9306020141 930602 DIVIDEND NEWS COTT CORP COTT CORP MISSISSAUGA ONTARIO SAID ITS BOARD APPROVED A 2FOR1 SPLIT OF THE COMPANY'S COMMON STOCK THE SOFT DRINK CONCERN WHICH HAD ABOUT 26 MILLION SHARES OUTSTANDING AS OF MARCH 3 EXPECTS THE SPLIT TO TAKE EFFECT AUG 3 SUBJECT TO REGULATORY AND SHAREHOLDER APPROVAL IN NATIONAL OVERTHECOUNTER TRADING YESTERDAY COTT SHARES ROSE 125 TO 39 9306020140 930602 WHO'S NEWS JOY TECHNOLOGIES INC JOY TECHNOLOGIES INC PITTSBURGH FREDERICK R ADLER 68 YEARS OLD MANAGING PARTNER OF ADLER & SHAYKIN A NEW YORK LEVERAGEDBUYOUT CONCERN THAT HAS A 3106 STAKE IN JOY WAS NAMED A DIRECTOR OF THIS MANUFACTURER AND SERVICER OF MINING EQUIPMENT THE MOVE INCREASES THE COMPANY'S BOARD SIZE TO SIX MEMBERS MR ADLER IS ALSO MANAGING PARTNER OF ADLER & CO NEW YORK A VENTURE CAPITAL MANAGEMENT FIRM AND A GENERAL PARTNER OF ITS INVESTMENT FUNDS ADDITIONALLY HE IS RETIRING SENIOR PARTNER OF THE LAW FIRM FULBRIGHT & JAWORSKI IN HOUSTON 9306020139 930602 INTERNATIONAL BEER BARON'S BID FOR PRESIDENCY RAISES BOTH GLASSES AND EYEBROWS IN BOLIVIA BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL LA PAZ BOLIVIA A POOR NEIGHBORHOOD IN THE CITY OF SANTA CRUZ NEEDED A KINDERGARTEN MAX FERNANDEZ BUILT IT THE BELL TOWER OF MONTERO'S CHURCH REQUIRED REPAIRS MAX FERNANDEZ BANKROLLED THE PROJECT THE PUBLIC SQUARES IN EL ALTO LACKED LIGHTING MAX FERNANDEZ INSTALLED IT THROUGH SOME 3000 SUCH PUBLIC WORKS AND DONATIONS WHICH HE VALUES AT ABOUT 15 MILLION BEER BARON MAX FERNANDEZ IS CUTTING A PATH THROUGH BOLIVIAN POLITICS THAT COULD LEAD HIM TO THE COUNTRY'S PRESIDENCY BUT AS THE JUNE 6 VOTE NEARS THE 50YEAROLD MR FERNANDEZ FACES TROUBLING QUESTIONS WHERE DOES HIS MONEY COME FROM AND WHY IS HE SO GENEROUS TO MR FERNANDEZ AND HIS SUPPORTERS MAX AS HE IS KNOWN IS THE HERO OF A RAGSTORICHES TALE A PHILANTHROPIST WHOSE SOCIAL CONSCIENCE WAS SHAPED BY HAVING BEEN POOR HIMSELF AND WHO FEELS COMPELLED TO DONATE PART OF THE CONSIDERABLE FORTUNE HE'S AMASSED THROUGH HARD WORK AND FINANCIAL CLEVERNESS IF IN THE PROCESS HE BECOMES BOLIVIA'S PRESIDENT SO BE IT BUT TO HIS CRITICS MR FERNANDEZ'S SUDDEN RISE TO CHAIRMAN AND BIGGEST SHAREHOLDER OF BREWER CERVECERIA BOLIVIANA NACIONAL OR CBN ONE OF THE COUNTRY'S LARGEST COMPANIES AND HIS SIMILARLY METEORIC ASCENT TO A POLITICAL CAREER ARE SHROUDED IN MYSTERY RUMORS OF TAX EVASION MONEY LAUNDERING EVEN OF DRUG TRAFFICKING ARE RIFE AS ARE INSINUATIONS OF BUYING VOTES WITH HIS DONATIONS THE ORIGIN OF HIS MONEY IS ILLICIT AND AT THE VERY LEAST HE'S LAUNDERING MONEY CONTENDS GONZALO RUIZ A MEMBER OF PARLIAMENT FROM A RIVAL POPULIST PARTY CONDEPA HE WANTS TO BE PRESIDENT TO RECOUP HIS INVESTMENTS AND PROTECT HIS ACTIVITY TO HIS DETRACTORS MR FERNANDEZ RETORTS LET THEM PROVE IT IN AN INTERVIEW AT HIS PARTY HEADQUARTERS HE ELABORATES I HAVE A CLEAR CONSCIENCE AND NOTHING TO FEAR HE ATTRIBUTES THE CHARGES TO ENVY I HAVE NOTHING TO HIDE SO FAR MR FERNANDEZ HAS THE LAW ON HIS SIDE THERE IS NO SMOKING GUN SAYS A WESTERN DIPLOMAT ATTEMPTS TO LINK HIM TO CBN'S DISTRIBUTOR IN ARGENTINA ARRESTED FOR DRUG TRAFFICKING PRODUCED NOTHING CONCLUSIVE CONDEPA THE RIVAL PARTY FAILED WHEN IT TRIED TO HAVE MR FERNANDEZ DISQUALIFIED FROM THE ELECTIONS BUT NOTES JORGE LAZARTE A MEMBER OF BOLIVIA'S ELECTORAL COURT THE COURT DIDN'T GIVE HIM A CERTIFICATE OF GOOD CONDUCT THE PROOF WAS INSUFFICIENT AND IT WASN'T WITHIN OUR JURISDICTION TO RULE ON CONDEPA'S REQUEST YET THE ACCUSATIONS ARE TAKEN SERIOUSLY ENOUGH THAT THE US EMBASSY IN LA PAZ WON'T GRANT MR FERNANDEZ A VISA UNTIL HE EXPLAINS THE ORIGIN OF HIS FORTUNE AND AT LEAST ONE MAJOR BOLIVIAN BANK REFUSES TO WORK WITH HIM NONE OF THIS SEEMS TO HURT MR FERNANDEZ EVEN THOUGH HIS CHANCES FOR WINNING THE ELECTION ARE TOUCH AND GO THE PRESIDENTIAL FRONTRUNNER GONZALO SANCHEZ DE LOZADA THE ARCHITECT OF BOLIVIA'S 1985 VICTORY OVER HYPERINFLATION SPENT HIS YOUTH IN THE US AND SPEAKS SPANISH WITH A HEAVY AMERICAN ACCENT MR FERNANDEZ'S MAIN CONTENDER FOR SECOND PLACE GEN HUGO BANZER RULED BOLIVIA AS MILITARY STRONGMAN FROM 1971 TO 1978 IF SECOND PLACE DOESN'T SOUND GOOD ENOUGH CONSIDER THIS JAIME PAZ ZAMORA BECAME BOLIVIA'S PRESIDENT IN 1989 AFTER FINISHING THIRD MR SANCHEZ DE LOZADA HAD WON A PLURALITY OF THE VOTES BUT GEN BANZER AND MR PAZ ZAMORA TEAMED UP TO DEPRIVE HIM OF A MAJORITY IN CONGRESS WHICH PICKS THE PRESIDENT IN THE ABSENCE OF A MAJORITY THIS SCENARIO COULD HAPPEN AGAIN AND THOUGH GEN BANZER ONCE THREATENED TO KILL MR FERNANDEZ PUNDITS DON'T RULE OUT A DEAL BETWEEN THE TWO MEN TO MAKE ONE OF THEM PRESIDENT AS MR FERNANDEZ RECOUNTS IT HIS LIFE STORY SOUNDS LIKE A FAIRY TALE AN ORPHAN WITH NO HIGHER EDUCATION HE BEGAN WORKING IN THE OIL BUSINESS FIRST WITH THE PARKER DRILLING CO THEN WITH GULF OIL MR FERNANDEZ SUBSEQUENTLY WENT INTO BUSINESS ON HIS OWN HE STARTED A BEER DISTRIBUTORSHIP BECAUSE HE NOTICED THAT CBN'S PACENA BEER SOLD LIKE HOT CAKES AS THE BUSINESS GREW HE BOUGHT SHARES IN THE COMPANY IN 1986 WITH THE BREWERY BUFFETED BY HYPERINFLATION HE SAYS SHAREHOLDERS TOLD HIM CBN NEEDED A DYNAMIC LEADER JUST LIKE HIM SO HE BOUGHT OUT OTHER SHAREHOLDERS AND SOON WAS IN CONTROL OF THE COMPANY WITH WHAT MONEY DID HE ACCOMPLISH THIS FEAT MR FERNANDEZ SAYS THAT FINANCIAL SPECULATION DURING HYPERINFLATION MULTIPLIED HIS FORTUNE AND THAT HE BOUGHT OUT SHAREHOLDERS ON CREDIT AT DEPRESSED PRICES SPENDING ABOUT 8 MILLION SINCE 1987 MR FERNANDEZ SAYS CBN HAS RAISED OUTPUT TENFOLD INCREASED MARKET SHARE TO 85 FROM 36 AND NOW EXPORTS TO 11 COUNTRIES THE UNLISTED COMPANY WHICH EMPLOYS 1500 PEOPLE SAYS IT HAS ANNUAL SALES OF ABOUT 80 MILLION PROFIT OF 8 MILLION AND DEBTS OF 31 MILLION HE'S A BUSINESS PHENOMENON SAYS STOCKBROKER DAVID GUTTIEREZ HE BOUGHT THE COMPANY AT A LOW PRICE AND EXPANDED IT IN TERMS OF ASSETS IT'S A QUALITATIVE AND QUANTITATIVE LEAP MR FERNANDEZ MADE A SIMILAR LEAP INTO POLITICS HE CLAIMS HE HARBORED NO POLITICAL AMBITIONS BUT HIS PUBLIC WORKS DREW ATTENTION HIS 1988 BID FOR THE PRESIDENCY WAS CUT SHORT WHEN THE ELECTORAL COURT BANNED HIM FOR REGISTRATION FRAUD HOWEVER HIS PARTY UNION CIVICA SOLIDARIDAD BOUNCED BACK IN THE 1989 MUNICIPAL ELECTIONS GAINING CONTROL IN 117 CITIES THAT ACCOMPLISHMENT IS ALL THE MORE ASTOUNDING CONSIDERING THAT MR FERNANDEZ IS A POOR ORATOR WITH NO KNOWN POLITICAL PROGRAM YOU ASK HIM WHAT HIS PROGRAM IS ON DEBT REDUCTION AND YOU GET BLANK STARES SAYS A DIPLOMAT IN LA PAZ MR FERNANDEZ RUNS HIS PARTY LIKE A PERSONAL FIEFDOM FIRING ELECTED OFFICIALS WHEN THEY DISPLEASE HIM AND EVEN ASKING POLITICAL CANDIDATES TO SIGN BLANK IOUS HIS APPEAL IS BASED ON BROADSIDES AGAINST CORRUPTION AND TRADITIONAL POLITICIANSAND LOTS OF OBRAS OR PUBLIC WORKS I FEEL FOR THE POOR SO I HELP THEM OUT OF MY OWN POCKET HE SAYS AS SOUTH AMERICA'S POOREST COUNTRY BOLIVIA OFFERS MR FERNANDEZ FERTILE GROUND FOR OBRAS PARTIES ALWAYS PROMISE THINGS AND USUALLY DON'T KEEP THEIR PROMISES SAYS ALFREDO ANTEQUERA LOPEZ A JEWELRY MAKER IN SUCRE MAX DOESN'T PROMISE THINGS INSTEAD HE DOES THINGS 9306020138 930602 INSIDER TRADING SPOTLIGHT NOTE SHOWS PURCHASES AND SALES BY MOST OFFICERS AND DIRECTORS WHICH MUST BE REPORTED TO THE SEC AND OTHER REGULATORS BY THE 10TH OF THE MONTH FOLLOWING THE MONTH OF THE TRADE INCLUDES BOTH OPENMARKET AND PRIVATE TRANSACTIONS INVOLVING DIRECT AND INDIRECT HOLDINGS EXCLUDES STOCKS VALUED AT LESS THAN 2 A SHARE ACQUISITIONS THROUGH OPTIONS AND COMPANIES BEING ACQUIRED W1000 OR MORE CBCHAIRMAN PPRESIDENT DDIRECTOR VPVICE PRESIDENT OOFFICER ZOTHER 9306020137 930602 CREDIT MARKETS BOND YIELDS PLUNGE ON MANY FACTORS INCLUDING LOWER GOLD PRICES OPTIMISM ON DEFICIT PARING BY THOMAS T VOGEL JR AND THOMAS D LAURICELLA STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK BOND YIELDS PLUNGED YESTERDAY IN REACTION TO A NUMBER OF FACTORS INCLUDING DECLINING GOLD PRICES AND IMPROVED PROSPECTS FOR DEFICIT REDUCTION THE YIELD OF THE BENCHMARK 30YEAR TREASURY BOND DROPPED TO 688 FROM 698 ON FRIDAY ITS PRICE WHICH MOVES IN THE OPPOSITE DIRECTION FROM ITS YIELD SOARED MORE THAN 1 1/4 POINTS OR MORE THAN 1250 FOR A BOND WITH A 1000 FACE VALUE TO 103 1/32 YIELDS FOR SHORTTERM TREASURY BILLS ALSO DROPPED AS FEARS WANED OVER AN IMMINENT MOVE BY THE FEDERAL RESERVE TO RAISE SHORTTERM INTEREST RATES IN ORDER TO COMBAT RISING INFLATIONARY PRESSURES THE THREEMONTH TREASURY BILL HAD A COUPONEQUIVALENT YIELD OF 309 LATE YESTERDAY DOWN FROM 312 ON FRIDAY TRADERS WERE RELUCTANT YESTERDAY TO ATTRIBUTE THE RALLY ONE OF THE BIGGEST SO FAR THIS YEAR TO ANY SINGLE FACTOR INSTEAD THEY POINTED TO A VARIETY OF FACTORS INCLUDING PESSIMISM AMONG WALL STREET BOND TRADERS WHO HAD BET AGAINST LOWER YIELDS AND WERE FORCED TO FILL CUSTOMER ORDERS FOR BONDS IN THE OPEN MARKET SINCE THEIR INVENTORIES WERE SPARSE THERE WAS DEFINITELY NO SINGLE CATALYST FOR THE RALLY SAID GREG ERARDI HEAD OF GOVERNMENT TRADING AT SALOMON BROTHERS INC ACCORDING TO MR ERARDI ONE BIG FACTOR WAS THAT MANY WALL STREET DEALERS WERE UNWILLING TO TAKE LARGE POSITIONS IN ADVANCE OF BIG ECONOMIC NUMBERS SUCH AS THE MAY EMPLOYMENT REPORT SLATED TO BE RELEASED ON FRIDAY AND INFLATION FIGURES TO BE RELEASED NEXT WEEK BUT WHEN BUY ORDERS STARTED COMING IN THE DEALERS WERE FORCED TO FILL THEM IN THE OPEN MARKET THUS BOOSTING PRICES WALL STREET DEALERS ARE NOT BUILDING UP THEIR INVENTORIES IN ADVANCE OF THE REPORTS SAID MR ERARDI SO SOME SIGNIFICANT INSTITUTIONAL BUYING YESTERDAY MORNING CAUGHT SOME PEOPLE LEANING THE WRONG WAY HE SAID ACCORDING MEAD L BRIGGS HEAD OF RISK MANAGEMENT AT DEUTSCHE BANK GOVERNMENT SECURITIES INC DEMAND MAY HAVE COME FROM INVESTORS WHO OVER THE PAST MONTH HAVE ALLOWED CASH TO ACCUMULATE RATHER THAN INVEST IN THE BOND MARKET PART OF THE REASON FOR THEIR HESITATION WOULD BE WORRIES ABOUT WHAT MOVE THE FED WOULD TAKE NEXT TO DEAL WITH GROWING INFLATIONARY PRESSURES OVER THE PAST FEW WEEKS THERE HAS BEEN MUCH SPECULATION ABOUT WHETHER THE FED WOULD MOVE TO RAISE SHORTTERM INTEREST RATES IF NEXT WEEK'S INFLATION REPORTS SHOWED PRICES CONTINUING TO RISE IN FACT SOME DEALERS ARE RUMORED TO HAVE MADE SIGNIFICANT BETS AGAINST LOWER BOND YIELDS IN ADVANCE OF THE LONG MEMORIAL DAY WEEKEND WHEN CUSTOMER DEMAND BEGAN TO PICK UP EARLY YESTERDAY A NUMBER OF THESE DEALERS HAD TO UNWIND SOCALLED SHORT POSITIONS IN WHICH THEY HAD SOLD BORROWED SECURITIES IN THE HOPE OF REPLACING THEM AT A LOWER PRICE AND HIGHER YIELD AND POCKETING THE DIFFERENCE PRICES BEGAN TO RISE EARLY IN THE DAY BOLSTERED BY EVENTS IN WASHINGTON LATE LAST WEEK AND OVER THE WEEKEND THE FIRST GLIMMERS OF ENCOURAGEMENT FOR INVESTORS EMERGED LAST WEEK AS PRESIDENT CLINTON CLAWED HIS WAY TO VICTORY AND PUSHED HIS DEFICIT REDUCTION PLAN THROUGH THE HOUSE OF REPRESENTATIVES THEN NEWS THIS PAST WEEKEND THAT SEN DAVID BOREN D OKLA SAW ROOM TO COMPROMISE WITH THE PRESIDENT ON AN ENERGY TAX ADDED TO HOPES THAT THE DEFICIT REDUCTION PLAN WOULD MAKE IT INTO LAW THE INCREASED LIKELIHOOD OF DEFICIT REDUCTION WAS CERTAINLY SOMETHING THAT THE MARKET TOOK HOLD OF SAID ZANE BROWN A DIRECTOR OF FIXEDINCOME TRADING AT LORD ABBETT & CO WEEKEND NEWS OUT OF WASHINGTON SERVED TO EASE SOME OF THE PESSIMISM ABOUT THE PROSPECTS FOR DEFICIT REDUCTION THAT HAD BEGUN TO PERVADE THE MARKET IN RECENT WEEKS THE BOND MARKET HAD SURGED EARLIER THIS YEAR IN THE HOPE THAT THE CLINTON PACKAGE OF SPENDING CUTS AND HIGHER TAXES WOULD KEEP INFLATION PRESSURES LOW AND REDUCE THE NUMBER OF BONDS ISSUED BY THE GOVERNMENT WE UNDID SOME OF THAT NEGATIVE PSYCHOLOGY SAID FRED LEINER MARKET STRATEGIST AT CONTINENTAL BANK BOREN INDICATED HE WAS READY FOR COMPROMISE AND AFTER LAST THURSDAY'S HOUSE VOTE THAT CONVINCED PEOPLE THE PLAN MIGHT GET THROUGH CONGRESS AND WE MIGHT SEE MORE SPENDING CUTS AND LESS TAX INCREASES MR LEINER SAID THE MARKET'S EARLY GAINS WERE EXTENDED DURING THE AFTERNOON AS GOLD PRICES PLUNGED AFTER BEING DOWN ABOUT 12 AN OUNCE GOLD ENDED THE DAY DOWN 9 AT 37130 AND IN A RELATED DECLINE THE WIDELY WATCHED COMMODITY RESEARCH BUREAU'S INDEX FELL SHARPLY CLOSING DOWN 169 POINTS AT 20700 THE DECLINE IN GOLD PRICES CAME AT A CRITICAL POINT FOR THE MARKET HELPING TO EASE SOME OF THE MARKET'S WORRIES ABOUT INFLATION GOLD IS OFTEN VIEWED AS MEASURE OF INFLATION EXPECTATIONS BECAUSE PRECIOUS METALS ARE USED AS A HEDGE AGAINST RISING PRICES BOND INVESTORS FEAR INFLATION BECAUSE IT REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN PART OF THE PROBLEM FOR THE MARKET WAS THAT SOME FEDERAL RESERVE OFFICIALS NOTABLY GOVERNOR WAYNE ANGELL HAD CITED RISING GOLD PRICES AS ONE REASON WHY THE FED MUST BE PREPARED TO RAISE INTEREST RATES SPECULATION AND NEWS REPORTS THAT THE FED HAD SHIFTED TOWARD A BIAS FOR BOOSTING RATES WAS A MAJOR FORCE IN DRIVING THE YIELDS OF SHORTERTERM TREASURYS SHARPLY HIGHER IN RECENT WEEKS BUT MR ANGELL APPEARING IN A TELEVISION INTERVIEW YESTERDAY AFTERNOON SOFTENED HIS USUALLY HAWKISH TONE SAYING THAT MANY OF THE INCREASES IN COMMODITIES THAT HE HAD BEEN CONCERNED ABOUT HAVE RECEDED TRADERS TOOK HIS COMMENTS TO MEAN THAT THERE WOULD BE NO NEED FOR THE FED TO ENGINEER AN IMMEDIATE INCREASE IN INTEREST RATES ANGELL'S REMARKS ALLEVIATED SOME OF THE CONCERNS ABOUT THE FED SAID TONY CRESCENZI HEAD OF FIXED INCOME AT MILLER TABAK HIRSCH & CO WITH THE BACKDROP OF THE BETTER NEWS OUT OF WASHINGTON BY REMOVING GOLD AS A HARBINGER OF HIGHER INFLATION THAT WAS ALL THAT PEOPLE NEEDED TO PUT SOME OF THE CASH FROM THE SIDELINES TO WORK SAID MR BROWN OF LORD ABBETT FOR THE MOST PART THE WIDE ARRAY OF ECONOMIC DATA RELEASED YESTERDAY HAD LITTLE IMPACT ON THE MARKET ALTHOUGH SOME OF THE NEWS DID SUPPORT THE MARKET'S POSITIVE TONE A RISE IN THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S INDEX TO 511 FOR MAY FROM 497 IN APRIL WAS AS EXPECTED A READING OVER 50 INDICATES EXPANSION IN THE MANUFACTURING SECTOR WHILE A READING BELOW 50 INDICATES CONTRACTION HOWEVER SOME LIGHT BUYING DID EMERGE IN RESPONSE TO DATA WITHIN THE NAPM REPORT SHOWING A FURTHER EBBING OF MANUFACTURING HIRING TRADERS MOSTLY BRUSHED ASIDE DATA SHOWING FLAT PERSONAL INCOME AND A 10 GAIN IN PERSONAL SPENDING FOR APRIL BUT LATE IN THE SESSION AN ADDED SPURT OF BUYING TOOK PLACE IN RESPONSE TO AN UNEXPECTEDLY WEAK JOHNSON REDBOOK REPORT ON CHAIN AND DEPARTMENT STORE SALES FOR THE FIRST FOUR WEEKS OF MAY JOHNSON REDBOOK AN AFFILIATE OF LYNCH JONES & RYAN REPORTED SALES FELL 08 DURING THE MONTH ANALYSTS WARNED THAT THE REPORT MAY HAVE BEEN SKEWED LOWER BY A LATE MEMORIAL DAY HOLIDAY THIS YEAR HERE ARE THE DETAILS OF YESTERDAY'S AUCTION BY THE TREASURY OF 13WEEK AND 26WEEK BILLS 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 BOTH ISSUES ARE DATED JUNE 3 THE 13WEEK BILLS MATURE SEPT 2 1993 AND THE 26WEEK BILLS MATURE DEC 2 1993 CORPORATE BONDS SOARED YESTERDAY IN TANDEM WITH TREASURY BONDS BUT THE GENERALLY NARROW SPREAD BETWEEN CORPORATE BOND YIELDS AND COMPARABLE TREASURYS DIDN'T BUDGE WHICH MANY ANALYSTS SAID REFLECTS INVESTORS' STRONG UNDERLYING DEMAND FOR CORPORATES A SPREAD IS THE DIFFERENCE OR GAP BETWEEN YIELDS ON CORPORATE BONDS AND ON TREASURY SECURITIES WITH THE SAME MATURITY THE CONCEPT IS IMPORTANT BECAUSE CORPORATE BONDS ARE PRICED TO OFFER HIGHER YIELDS THAN COMPARABLE TREASURYS TO COMPENSATE INVESTORS FOR THE EXTRA CREDIT RISK IN THEORY THAT GAP SHOULD WIDEN WHEN TREASURY YIELDS FALL AS THEY DID YESTERDAY BECAUSE CORPORATE BONDS USUALLY LAG BEHIND TREASURYS BUT BECAUSE THE NEWISSUE MARKET FOR CORPORATES HAS SLOWED IN RECENT WEEKS AND THE SUPPLY OF SEASONED BONDS HAS SHRUNK AS WELL THE OUTLOOK FOR CORPORATE BONDS REMAINS STRONG MEANWHILE LOEWS CORP A NEW YORKBASED DIVERSIFIED COMPANY WITH INTERESTS IN TOBACCO AND FINANCIAL SERVICES OFFERED THE SESSION'S SOLE DOMESTIC NEW ISSUE A 300 MILLION OFFERING OF 30YEAR SENIOR NOTES ALSO THE CANADIAN PROVINCE OF BRITISH COLUMBIA FLOATED ITS FIRST GLOBAL BOND ISSUE A 125 BILLION CANADIAN DOLLAR US9834 MILLION ISSUE OF 10YEAR BONDS SEASONED INVESTMENTGRADE ISSUES ENDED 1/8 POINT TO AS MUCH AS ONE POINT STRONGER WHILE JUNK BONDS GAINED 1/8 POINT THE CORPORATE MARKET FEELS STRONG SAID JAMES HO WHO MANAGES ROUGHLY 2 BILLION OF CORPORATE BONDS FOR JOHN HANCOCK'S SOVEREIGN BOND FUND HOWEVER SOME OBSERVERS SAID THE CORPORATE MARKET COULD BE TESTED IN THE COMING WEEKS IF INTEREST RATES FALL FURTHER UNLEASHING A FLOOD OF NEW BONDS BUT OTHERS DISAGREED EVEN WITH A NEW BURST OF SUPPLY CORPORATE SPREADS SHOULD HOLD THEIR GROUND BECAUSE THERE'S MONEY OUT THERE THAT NEEDS TO BE PUT TO WORK SAID SID BAKST WHO MANAGES ABOUT 6 BILLION IN CORPORATES FOR NEW YORK LIFE INSURANCE CO UNLESS THE NEW DEALS COME VERY QUICKLY AND IN ABUNDANCE THE MARKET SHOULD HAVE NO PROBLEM ABSORBING THEM PRICES OF MUNICIPAL SECURITIES GENERALLY ENDED 1/8 TO 3/8 POINT HIGHER BUT SCATTERED MUNICIPALS WERE THE TARGETS OF PARTICULARLY HEAVY BUYING AND CLOSED WITH GAINS OF 1/2 POINT OR MORE AMONG THE BIG GAINERS WERE CHICAGO'S 5625 EMERGENCY TELEPHONE SYSTEM REVENUE BONDS OF 2023 THEY CLOSED 1/2 STRONGER AT 95 7/8 TO YIELD 591 NEW YORK CITY HEALTH & HOSPITALS CORP'S 5625 HEALTH SYSTEM BONDS OF 2013 FINISHED 1/4 FIRMER AT 99 1/4 TO YIELD 568 ALTHOUGH MUNIS ROSE SIGNIFICANTLY YESTERDAY SUPPLY WORRIES PERSIST MORE THAN 3 BILLION OF BOND OFFERINGS ARE SLATED FOR PRICING IN THE NEXT FEW DAYS AND TAXEXEMPTS COULD SUFFER IF THE SECURITIES HIT THE MARKET FASTER THAN THEY CAN BE ABSORBED THE LARGEST ISSUE ON THIS WEEK'S PRICING CALENDAR IS THE NEW YORK STATE DORMITORY AUTHORITY'S 800 MILLION OF REFUNDING REVENUE BONDS GOLDMAN SACHS & CO THE LEAD UNDERWRITER SAID TOMORROW IS THE TARGET DAY FOR THE PRICING THOSE BONDS WERE TO HAVE BEEN SOLD LAST WEEK BUT THE PRICING WAS POSTPONED PRICES OF MORTGAGE SECURITIES ENDED ABOUT 3/8 POINT HIGHER OF 7 AGENCY COUPONS FOR JUNE DELIVERY GOVERNMENT NATIONAL MORTGAGE ASSOCIATION ISSUES ADDED 14/32 TO END AT 100 12/32 FEDERAL HOME LOAN MORTGAGE CORP GOLD ISSUES FINISHED 12/32 HIGHER AT 100 18/32 AND FEDERAL NATIONAL MORTGAGE ASSOCIATION ISSUES FINISHED 13/32 HIGHER AT 100 15/32 NO NEW REAL ESTATE MORTGAGE INVESTMENT CONDUITS WERE ANNOUNCED FREDDIE MAC REPORTED MIDAPRIL TO MIDMAY PREPAYMENT SPEEDS THAT WERE LARGELY IN LINE WITH EXPECTATIONS THE REPORT RECORDS THE RATE AT WHICH SECURITIES ARE RETIRED BY REFINANCINGS IN THE UNDERLYING MORTGAGE LOANS SOME ANALYSTS BELIEVE PREPAYMENTS ARE AT OR NEAR THEIR PEAK WE SHOULD SEE A GENTLE SUBSIDING OF PREPAY SPEEDS BUT THEY WON'T GO AWAY QUICKLY BECAUSE THERE IS A LOT OF PRODUCTION STILL IN THE PIPELINES SAID LINDA LOWELL AN ANALYST AT SMITH BARNEY HARRIS UPHAM & CO PEOPLE ARE STILL EXERCISING THE OPTION TO REFINANCE 9306020136 930602 TECHNOLOGY & HEALTH IN THE LAB LAB COMPUTES DEAD END FOR TRAFFIC JAMS BY GLENN RUFFENACH STAFF REPORTER OF THE WALL STREET JOURNAL ATLANTA THE MOTHER OF ALL TRAFFIC JAMS MIGHT OCCUR HERE ON JULY 30 1996 THAT DAY SOME 600000 SPECTATORS ALONG WITH 120000 ATHLETES COACHES JUDGES JOURNALISTS VOLUNTEERS AND ASSORTED HANGERSON ARE EXPECTED TO CONVERGE ON ATLANTA FOR THE BUSIEST 24 HOURS OF COMPETITION IN THE 1996 SUMMER OLYMPICS BETWEEN 1 PM AND 2 PM ALONE AN ESTIMATED 90000 BODIES WILL POUR OUT OF THE MORNING SESSIONS OF BASEBALL AND TRACK AND FIELD STIR IN THE 28 MILLION PEOPLE ALREADY LIVING AND WORKING IN THE ATLANTA METROPOLITAN AREA BAKE AT 95 DEGREES FAHRENHEIT AND 95 HUMIDITY AND THE RECIPE IS COMPLETE FOR GRIDLOCK SOUTHERN STYLE IF HOWEVER AUTOS AND BUSES SPEND THE DAY MOVING BRISKLY ABOUT A SMALL TEAM OF SCIENTISTS AT GEORGIA INSTITUTE OF TECHNOLOGY AMONG OTHERS WILL LIKELY EARN THE CITY'S GRATITUDE HERE ON THE GEORGIA TECH CAMPUS RESEARCHERS ARE TAKING COMPUTER PROGRAMS ORIGINALLY DESIGNED TO HELP MILITARY PILOTS EVADE ENEMY THREATS AND ARE SHAPING THEM TO HELP DRIVERS EVADE BUMPERTOBUMPER TRAFFIC IF SUCCESSFUL THEIR SYSTEM COULD SIGNIFICANTLY EASE CONGESTION IN CITIES AROUND THE WORLD NOT TO MENTION ATLANTA ON JULY 30 1996 CALLED TERMINUS SHORT FOR TRAFFIC EVENT RESPONSE AND MANAGEMENT FOR INTELLIGENT NAVIGATION UTILIZING SIGNALS THE PROJECT IS THE CREATION OF JOHN GILMORE A SENIOR RESEARCH SCIENTIST AT GEORGIA TECH IN MOST TOWNS AND CITIES HE SAYS TRAFFIC MANAGEMENT EQUATES TO LITTLE MORE THAN SIGNAL LIGHTS BEING PROGRAMMED TO CHANGE FROM RED TO GREEN AT CERTAIN INTERVALS AT CERTAIN TIMES OF THE DAY TERMINUS HOWEVER IS DESIGNED TO EVALUATE THE ACTUAL NUMBER AND FLOW OF VEHICLES ON STREETS IT WOULD THEN HAVE THE ABILITY TO CHANGE INDIVIDUAL LIGHTS AND PERHAPS OPEN AND CLOSE REVERSIBLE LANES IN ORDER TO STEER AUTOS AWAY FROM CROWDED INTERSECTIONS AND THOROUGHFARES RIGHT NOW WE'RE SET UP TO EVALUATE TRAFFIC CONDITIONS EVERY 20 SECONDS SAYS MR GILMORE BUT WE CAN CHANGE IT TO EVERY SECOND IF NECESSARY TRAFFIC TIEUPS HAVE BECOME A NIGHTMARE FOR MOST US CITIES REGARDLESS OF THE PRESENCE OF INTERNATIONAL SPORTS EXTRAVAGANZAS MORE THAN 70 OF RUSHHOUR TRAVEL ON URBAN INTERSTATE HIGHWAYS NOW TAKES PLACE UNDER CONGESTED CONDITIONS UP FROM 55 IN 1983 ACCORDING TO THE FEDERAL HIGHWAY ADMINISTRATION A STUDY OF 50 URBAN AREAS PUBLISHED LAST YEAR BY THE TEXAS TRANSPORTATION INSTITUTE FOUND THAT TRAFFIC CONGESTION COST THE LOCAL ECONOMIES A TOTAL OF 391 BILLION DELAYS ACCOUNTED FOR ABOUT 85 OF THE BILL WHILE EXCESS FUEL CONSUMPTION GOBBLED UP THE REST AT GEORGIA TECH MR GILMORE HAD BEEN HELPING MILITARY AIRCRAFT DODGE HAZARDS LIKE RADAR AND MISSILES HIS WORK CENTERED ON SOCALLED NEURAL NETWORKS COMPUTER SIMULATIONS THAT ARE PATTERNED AFTER THE WORKINGS OF NEURONS IN THE HUMAN BRAIN DEVELOPED IN THE MID1980S NEURAL NETS TAKE A DIFFERENT APPROACH TO PROBLEMSOLVING THAN THEIR CONVENTIONAL COUNTERPARTS WHICH TEND TO PROCESS INFORMATION IN A RIGID SEQUENCE SYSTEMS LIKE TERMINUS ACT IN PARALLEL SHARING DATA AND AVOIDING DISRUPTIONS IF SAY A SINGLE NEURON BREAKS DOWN WHAT'S MORE NEURAL NETWORKS ARE BETTER AT RECOGNIZING PATTERNS SAYS RICHARD PETERSON A GRADUATE ASSISTANT AT GEORGIA TECH AND CAN LEARN TO ACT ON THOSE PATTERNS ON WALL STREET FOR INSTANCE NEURAL NETS HAVE BEEN USED TO EVALUATE THE STOCK MARKET EXAMINING A DOZEN VARIABLES CASH FLOW DEBT LEVELS ETC FOR THOUSANDS OF COMPANIES AND THEN DETERMINING PATTERNS IN STOCK PRICES THAT ARE DRIVING THE MARKET IN SHORT AN IDEAL TOOL FOR MANAGING THE INFINITE COMPLEXITIES OF A CITY'S STREETS AT RUSH HOUR CURRENTLY THE ONLY TRAFFIC BEING MANAGED BY TERMINUS IS ON THE SCREENS OF MR GILMORE'S SUN MICROSYSTEMS WORKSTATIONS AT GEORGIA TECH TO TEST HIS IDEAS STUDENTS WERE SENT OUT TO MAP IN DETAIL THE ROADS RAMPS PARKING LOTS AND TRAFFIC LIGHTS SURROUNDING ATLANTAFULTON COUNTY STADIUM HOME TO THE ATLANTA BRAVES THE INFORMATION WAS FED INTO THE COMPUTERS AND MR GILMORE BEGAN RUNNING SIMULATIONS OF A TYPICAL SELLOUT CROWD LEAVING THE BALLPARK AND HEADING FOR HOME ON A RECENT MUGGY AFTERNOON IN ATLANTA MICHELANGELO DONATELLO AND SPLINTER THE NAMES GIVEN TO THREE OF MR GILMORE'S WORKSTATIONS FROM THE COMIC STRIP TEENAGE MUTANT NINJA TURTLES ARE BUSY MONITORING THE FLOW OF IMAGINARY AUTOS POURING OUT OF THE STADIUM PARKING LOTS A MAP OF THE SURROUNDING AREA FILLS THE COMPUTER SCREENS EACH STREET HAS A COUNTER SHOWING THE NUMBER OF VEHICLES ON THAT PARTICULAR ROADWAY AT THAT PARTICULAR MOMENT AT INTERSECTIONS VERTICAL AND HORIZONTAL DASHES INDICATE WHETHER LIGHTS ARE RED OR GREEN MOVING FROM THE LAB TO THE STREETS IS MR GILMORE'S NEXT OBJECTIVE THE CITY OF TOULOUSE FRANCE ALREADY HAS THE SENSORS IN PLACE TO MEASURE TRAFFIC FLOW AND A CENTRAL MANAGEMENT SYSTEM TO ACCOMMODATE TERMINUS MR GILMORE AND OFFICIALS THERE ARE IN TALKS ABOUT A TEST IN THE NEAR FUTURE IN ATLANTA TWO LARGE HURDLES NOW STAND BEFORE GEORGIA TECH'S TEAM FIRST THEY MUST FIND THE MONEY AND PERSONNEL TO MAP EVERY LANE ON EVERY STREET AND EVERY TRAFFIC SIGNAL IN THE CITY REMARKABLY SAYS MR GILMORE NO CENTRAL REFERENCE APPEARS TO EXIST THAT SHOWS THE CURRENT TIMING SEQUENCES FOR ATLANTA'S 5000 LIGHTS SECOND THE CITY ITSELF MUST MOVE FORWARD TO INSTALL THE SENSORS AND CAMERAS NEEDED TO MEASURE TRAFFIC AND A CENTRAL COMPUTER TO ACCEPT THE DATA AND THEN MANAGE SIGNALS AND STREETS THE RESEARCHERS SAY THEY STILL CAN'T ESTIMATE WHAT THE COST OF BRINGING TERMINUS TO A CITY THE SIZE OF ATLANTA WOULD BE A SINGLE SENSOR ALONE MR GILMORE ESTIMATES COULD COST 1200 ALREADY A TEAM LED BY TRW INC BASED IN CLEVELAND OHIO IS WORKING TO TIE THE ROADS AND INTERSTATES THAT PASS THROUGH THE SIX TOWNS AND FIVE COUNTIES SURROUNDING ATLANTA INTO A SINGLE TRAFFICMANAGEMENT SYSTEM ABOUT 70 MILLION HAS BEEN ALLOCATED BY LOCAL STATE AND FEDERAL TRANSPORTATION AGENCIES THE OLYMPICS HOWEVER ARE ONLY THREE YEARS AWAY WILL MR GILMORE AND CREW MAKE IT ORIGINALLY WE HAD HOPED TO HAVE SOMETHING IN PLACE BY 1994 WHEN ATLANTA PLAYS HOST TO THE SUPER BOWL HE SAYS AS TIME GOES ON IT'S GETTING PRETTY TIGHT 9306020135 930602 FINANCING BUSINESS ONEX CORP ONEX CORP SAID ITS 54OWNED SUBSIDIARY JOHNSTOWN AMERICA INDUSTRIES INC PLANS AN INITIAL PUBLIC OFFERING OF SHARES TO RAISE ABOUT 35 MILLION JOHNSTOWN PLANS TO SELL THREE MILLION SHARES ONEX AND OTHER INVESTORS PLAN TO SELL AN ADDITIONAL 750000 SHARES ONEX A TORONTO HOLDING COMPANY PLANS TO RECEIVE ABOUT 5 MILLION FROM THE SALE OF ITS SHARES ONEX SAID IT WILL OWN 23 AND RETAIN VOTING CONTROL OF JOHNSTOWN A RAILROAD FREIGHTCAR MAKER BASED IN JOHNSTOWN PA 9306020134 930602 SERVING UP NEW NUTRITION LABELS RESTAURANT MENUS' HEALTH CLAIMS MAY BE REGULATED BY RICHARD GIBSON THE CLINTON ADMINISTRATION IS LIKELY TO REVERSE A BUSH ADMINISTRATION DECISION AND REQUIRE RESTAURANTS TO COMPLY WITH SOME NEW FOODLABELING LAWS IF THAT HAPPENS RESTAURANTS MAKING HEALTH AND NUTRITION CLAIMS ON MENUS SUCH AS LIGHT FARE WOULD HAVE TO DISCLOSE THE SCIENTIFIC BASIS OF THOSE CLAIMS TO PATRONS INITIALLY RESTAURANT MENUS WERE COVERED BY THE NUTRITION LABELING AND EDUCATION ACT OF 1990 WHICH DEFINES TERMS SUCH AS LIGHT AND LOW FAT BUT AT THE LAST MINUTE FORMER PRESIDENT GEORGE BUSH EXEMPTED RESTAURANTS PUBLICINTEREST GROUPS SUED THE FOOD AND DRUG ADMINISTRATION CHALLENGING THE EXEMPTION THE GOVERNMENT HAS UNTIL JUNE 11 TO REPLY BUT A SENIOR OFFICIAL AT THE FDA WHO ASKED NOT TO BE IDENTIFIED CONFIRMED RUMORS IN THE FOODSERVICE INDUSTRY THAT THE NEW ADMINISTRATION IS LEANING TOWARD MAKING RESTAURANTS COMPLY WITH THE LAW WHICH TAKES EFFECT NEXT MAY UNDER COMMISSIONER DAVID KESSLER A HOLDOVER FROM THE BUSH ADMINISTRATION THE FDA HAD FAVORED INCLUDING RESTAURANTS BUT WAS OVERRULED BY THE BUSH WHITE HOUSE FDA SOURCES SAY THE AGENCY HASN'T CHANGED ITS POSITION DR KESSLER DECLINES TO COMMENT ON WHAT THE CLINTON WHITE HOUSE PLANS TO DO FOR RESTAURANTS THE LAW'S IMPACT WOULD BE SIGNIFICANT ESTABLISHMENTS OFFERING LIGHT OR LOWFAT OR LOWSODIUM ITEMS WOULD HAVE TO PROVIDE DETAILED NUTRITIONAL ANALYSES OF DISHES OR REMOVE THE ITEMS EITHER WAY MILLIONS OF MENUS WOULD HAVE TO BE REPRINTED AT A COST THE INDUSTRY SAYS WOULD BE IN THE MANY MILLIONS OF DOLLARS THE IMMEDIATE IMPACT WILL PROBABLY BE THAT RESTAURATEURS WILL DROP HEALTH CLAIMS FROM MENUS AS THEY SEEK TO UNDERSTAND WHAT'S REQUIRED OF THEM SAYS JEFF PRINCE SENIOR DIRECTOR AT THE NATIONAL RESTAURANT ASSOCIATION AN INDUSTRY TRADE GROUP IF REGULATIONS DESIGNED FOR SUPERMARKET ITEMS ARE IMPOSED WITH NO MODIFICATION IT'S LIKELY THOSE HEALTH TERMS WILL NEVER BE RETURNED TO THE MENU FOR EXAMPLE TO CALL AN ENTREE LIGHT A RESTAURANT WOULD HAVE TO SHOW THAT IT CONTAINED EITHER ONETHIRD FEWER CALORIES OR 50 LESS FAT THAN A SIMILAR FOOD MR PRINCE SAYS THERE IS NO SIMILAR' FOOD NO STANDARD OF COMPARISON RESTAURANTS DON'T REFORMULATE A PRODUCT TO HAVE A LIGHT' OFFERING THEY CREATE IT FROM SCRATCH STILL RECOGNIZING THE CONSUMERORIENTED INTENT BEHIND THE NEW LAW MR PRINCE SAYS HIS ASSOCIATION IS WILLING TO WORK TOWARD MODIFIED REGULATIONS WHOSE TERMS AND DEFINITIONS ARE COMPATIBLE WITH THOSE ON PACKAGED FOODS THE LAWSUIT WAS BROUGHT BY PUBLIC CITIZEN AND THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST TWO WATCHDOG GROUPS THAT ARGUE THAT NUTRITION CLAIMS SHOULD BE REGULATED WHATEVER THEIR SOURCE THIS IS NOT TO REQUIRE RESTAURANTS TO MAKE HEALTH OR NUTRITION MENU CLAIMS BUT IF THEY DO TO DO SO IN ACCORDANCE WITH THE FDA REGULATIONS SAYS TERESA AMATO A WASHINGTON ATTORNEY FOR THE PLAINTIFFS THE LAWSUIT ALSO SEEKS TO SHORTEN THE TIME SMALL RESTAURANTS WOULD HAVE TO COMPLY SHOULD THE EXEMPTION BE OVERTURNED INSURING COMPLIANCE WITH THE LAW IS UP TO STATE AUTHORITIES WE CAN'T DO AN ANALYSIS OF THE NUTRIENTS FOR EVERY PLATE OF LINGUINE THE FDA OFFICIAL SAYS A RESTAURANT BASING MENU CLAIMS ON RECIPES APPROVED BY SUCH HEALTH ORGANIZATIONS AS THE AMERICAN HEART ASSOCIATION WOULDN'T HAVE TO INDEPENDENTLY SUBSTANTIATE THE CLAIM THEY DON'T HAVE TO INCUR ANY EXPENSE THE OFFICIAL SAYS 9306020133 930602 TECHNOLOGY & HEALTH AT&T AND VIACOM ARE SAID TO PLAN AN ELABORATE TEST OF INTERACTIVE TV BY JOHN J KELLER AND MARK ROBICHAUX STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK AMERICAN TELEPHONE & TELEGRAPH CO AND CABLE TELEVISION GIANT VIACOM INTERNATIONAL INC PLAN TO CONDUCT AN ELABORATE TEST OF INTERACTIVE SERVICES WITH A COUPLE OF THOUSAND CUSTOMERS IN CASTRO VALLEY CALIF SAID INDIVIDUALS CLOSE TO THE FIELD TRIAL THE MARKET TEST WHICH THEY SAID WILL BE ANNOUNCED TODAY AND OCCUR LATER THIS YEAR WILL ALLOW SOME OF VIACOM'S 13000 CUSTOMERS IN THE SAN FRANCISCO SUBURB TO INTERACT WITH A RANGE OF VIDEO PROGRAMS FROM GAMES AND MOVIES TO EDUCATION THE ANNOUNCEMENT WOULD BE THE LATEST IN A SERIES OF ALLIANCES THAT FURTHER BLURS THE DISTINCTIONS BETWEEN CABLE TV AND PHONE COMPANIES LAST MONTH U S WEST INC SIGNED A 25 BILLION PACT TO PURCHASE 25 OF TIME WARNER INC'S ENTERTAINMENT DIVISION WHICH HAS EXTENSIVE CABLE HOLDINGS THE TEST IS SAID TO BE THE BIGGEST SO FAR OF AT&T INTERACTIVE TECHNOLOGY ENCOMPASSING NOT ONLY SPECIAL AT&T NETWORK EQUIPMENT TO DELIVER THE SERVICES BUT AT&TDESIGNED INTERACTIVE SOFTWARE TO PROVIDE THE PROGRAMMING VIACOM WOULD GIVE THE CONSUMERORIENTED AT&T A DIRECT LINE TO THE MTV GENERATION AND THE PROGRAMS THEY LIKE TO WATCH VIACOM HAS ONE OF THE MOST ENVIABLE PROGRAM PORTFOLIOS WITH HOLDINGS THAT INCLUDE MTV VH1 NICKELODEON AND SYNDICATION RIGHTS TO SUCH SHOWS AS COSBY WHILE THE EXACT PROGRAMS PLANNED ARE UNCLEAR THE INDIVIDUALS SAID THEY MAY DRAW INSPIRATION FROM AT&T'S TESTS OF INTERACTIVE TECHNOLOGY AT AT&T BELL LABORATORIES MURRAY HILL NJ THE COMPANIES WILL ALSO GLEAN INSIGHTS FROM VIACOM'S CASTRO VALLEY SYSTEM WHICH ITSELF HAS BEEN A HOTBED OF TESTING OF NEW CONSUMER SERVICES AT BELL LABS AT&T SCIENTISTS HAVE DEVELOPED SEVERAL PROTOTYPE INTERACTIVE PROGRAMS ONE WOULD LET A VIEWER CALL UP A MOVIE IN THE CORNER OF HIS TV SCREEN AND AT THE SAME TIME PROGRAM THE TELEVISION TO SEPARATELY DISPLAY SAY A BOSTON RED SOX GAME ONLY WHEN A PARTICULAR PLAYER IS BATTING ANOTHER AT&T PROGRAM HELPS CHILDREN LEARN HOW TO SPELL THE PROGRAM SHOWS A FUZZY PICTURE OF A CAT ON THE TV SCREEN AS THE CHILD USES THE INTERACTIVE DEVICE TO FILL IN THE CORRECT SPELLING THE PICTURE BECOMES CLEARER UNTIL FINALLY THE CAT RUNS AWAY AT&T WILL PROVIDE THE SOCALLED NETWORK VIDEO SERVERS FOR THE FIELD TRIAL SUCH EQUIPMENT IS DESIGNED TO LET RESIDENTIAL CUSTOMERS PLUCK A MOVIE FROM THOUSANDS OF TITLES JUST BY PUSHING A BUTTON OR DIALING A NUMBER THE FILM IS THEN TRANSMITTED ELECTRONICALLY VIA THE PHONE OR CABLE LINE TO THE HOME AT&T'S INTERACTIVE SOFTWARE WOULD THEN LET THE CUSTOMER USE A HOME DEVICE WITH A JOYSTICK TO MANIPULATE THE PROGRAMMING AT&T IS ALREADY CONDUCTING A MARKET TEST OF SOCALLED VIDEOONDEMAND SERVICES WITH TELECOMMUNICATIONS INC AND U S WEST BUT THE SERVICE WITH VIACOM THE COUNTRY'S 12THLARGEST CABLE OPERATOR WILL BE A MORE ELABORATE OFFERING OF INTERACTIVE VIDEO SERVICES THE INDIVIDUALS SAID VIACOM WHICH HAS 11 MILLION SUBSCRIBERS NATIONWIDE HAS BEEN POURING TENS OF MILLIONS OF DOLLARS INTO UPGRADING ITS CABLE SYSTEMS THE COMPANY PLANS TO OFFER CASTRO VALLEY SUBSCRIBERS AS MANY AS 1000 CHANNELS BY THE END OF THE YEAR 9306020132 930602 WORLD MARKETS STOCKS END MIXED IN TOKYO BUT NIKKEI REBOUNDS AFTER THREE LOSING DAYS PRICES RISE IN LONDON A WALL STREET JOURNAL NEWS ROUNDUP STOCK PRICES IN TOKYO WERE MIXED TUESDAY IN LACKLUSTER TRADING BUT THE BENCHMARK INDEX SNAPPED A THREESESSION LOSING STREAK LONDON STOCKS ROSE AS DECLINING MONEYMARKET INTEREST RATES TRIGGERED DEMAND FOR STOCKINDEX FUTURES WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10815 UP 024 REFLECTING HIGHER MARKETS IN THE AMERICAS AND LOWER EUROPEAN AND ASIA/PACIFIC MARKETS COAL STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 10253 UP 288 OR 29 WITH MITSUI MINING OF JAPAN POSTING A 56 GAIN IN ITS LOCAL CURRENCY PRECIOUS METALS STOCKS TRAILED AT 13026 DOWN 369 OR 28 WITH BATTLE MOUNTAIN GOLD OF THE US SLIDING 9 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SANK 29134 POINTS MONDAY EDGED UP 3906 TO 2059141 ON WEDNESDAY THE NIKKEI ROSE 2710 POINTS TO CLOSE THE MORNING SESSION AT 2061851 TUESDAY'S FIRSTSECTION VOLUME ROSE TO AN ESTIMATED 370 MILLION SHARES FROM 343 MILLION SHARES ON MONDAY LOSERS OUTNUMBERED GAINERS507496 THE TOKYO STOCK PRICE INDEX OR TOPIX OF ALL FIRSTSECTION ISSUES WHICH SLID 1822 POINTS MONDAY EDGED UP 065 TO 163725 GIVEN FEW BUYING INCENTIVES MOST INVESTORS STUCK TO THE SIDELINES AND INDIVIDUALS AND PUBLIC PENSION FUNDS ACCOUNTED FOR MOST OF THE PURCHASES FOREIGN BROKERS IN TOKYO SAID THEIR OVERSEAS CLIENTS HADN'T RETURNED FROM HOLIDAYS THAT SHUT MARKETS MONDAY IN THE US MOST OF EUROPE AND THE MIDDLE EAST THE NIKKEI MOVED UP IN THE MORNING SESSION BUT INVESTORS BECAME UNSETTLED BY THE YEN'S RESURGENCE AGAINST OTHER MAJOR CURRENCIES IN FOREIGNEXCHANGE DEALINGS AND MARKET PARTICIPANTS DIDN'T GET MUCH ENCOURAGEMENT FROM A REPORT THAT JAPAN'S INDEX OF LEADING ECONOMIC INDICATORS IN MARCH STOOD AT 792 ABOVE THE SOCALLED BOOMORBUST LINE OF 50 FOR THE THIRD MONTH IN A ROW THE DATA PARTLY REFLECTED A JUMP IN INDUSTRIAL PRODUCTION AS COMPANIES BOOSTED OUTPUT AND SALES IN AN ATTEMPT TO DRESS UP THEIR RESULTS FOR THE FISCAL YEAR ENDED MARCH 31 IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 85 POINTS FROM FRIDAY TO 28492 WITH 54 ISSUES ADVANCING AND 40 DECLINING THE BOURSE WAS CLOSED MONDAY FOR A HOLIDAY THE FT 30STOCK INDEX ADDED 67 POINTS TO 22117 VOLUME WAS 4019 MILLION SHARES COMPARED WITH 5773 MILLION IN THE PREVIOUS SESSION THE THIN TRADING CONDITIONS EXAGGERATED LONDON STOCKS' GAINS A BIT RENEWED OPTIMISM ABOUT BRITISH LENDING RATES WAS REINFORCED BY A DROP IN THE PURCHASING MANAGERS' INDEX IN MAY AND BY SOME ECONOMISTS' REASSESSMENT OF THEIR PREVIOUS PESSIMISM ABOUT CHANCES FOR A POLITICALLY INSPIRED RATE CUT BY BRITIAN'S NEW TREASURY CHIEF THAT STRENGTHENED FUTURES AND STOCKS TOO WERE HELPED BY EARLY GAINS ON WALL STREET IN FRANKFURT STOCKS LOST GROUND BUT FINISHED ABOVE INTRADAY LOWS FOLLOWING A MONDAY HOLIDAY THE DAX 30STOCK INDEX DROPPED 1196 POINTS FROM FRIDAY TO 161989 ALL BUT TWO OF THE DAX SHARES FELL ON A DROP IN BOND PRICES AND DISAPPOINTMENT ABOUT GERMAN CORPORATE EARNINGS AND PROSPECTS THE MARK'S STRENGTHENING AGAINST THE DOLLAR AND A BANK'S REVISED OUTLOOK FOR SHRINKAGE IN THE WESTERN GERMAN ECONOMY THIS YEAR SUGGESTING PAIN FOR CORPORATE RESULTS ALSO ADDED TO THE DOWNWARD PRESSURE ON STOCK PRICES IN PARIS INDEXLINKED TRADING PUSHED STOCKS DOWN SHARPLY IN QUIET TRADING AS TRADERS RETURNED TO THE MARKET AFTER A LONG WEEKEND AND SOLD BASKETS OF CAC 40 INDEX STOCKS AGAINST FUTURES SUCH TECHNICAL DEALINGS DOMINATED THE MARKET ALL DAY WHILE SENTIMENT WAS BEARISH BECAUSE OF A WEAKER FRENCH FRANC AGAINST THE GERMAN MARK AND THE FRENCH CENTRAL BANK'S DECISION TO LEAVE INTEREST RATES UNCHANGED IN AMSTERDAM PRICES WEAKENED BROADLY IN THIN TRADING AS THE DOLLAR CONTINUED TO BE SOFT AND A LACK OF GOOD ECONOMIC NEWS LEFT LITTLE INCENTIVE TO BUY IN MILAN SHARES CLIMBED ON STRONG CORPORATE EARNINGS AND PLANS THOUGH THEY ENDED OFF THE DAY'S HIGHS MADRID SHARES ROSE FOLLOWING A TURNAROUND FROM FUTURESRELATED SELLING BUT DEALINGS WERE QUIET AS INVESTORS WERE CAUTIOUS AHEAD OF SUNDAY'S SPANISH GENERAL ELECTIONS AND OF ANY FURTHER POSSIBLE CUT IN RATES BY THE CENTRAL BANK IN STOCKHOLM EQUITIES DROPPED ACROSS THE BOARD AS INVESTORS CONCERNED ABOUT THE WEAKER DOLLAR AND THE US ECONOMY TOOK PROFITS ZURICH STOCKS ALSO DECLINED ON PROFITTAKING PROMPTED BY FEARS THAT WALL STREET IS IN FOR A DOWNWARD CORRECTION SOON STOCK PRICES WERE GENERALLY MIXED THROUGHOUT ASIAN AND PACIFIC MARKETS SYDNEY SHARES FELL AFTER MOVING ERRATICALLY SLIPPING EARLY RALLYING ON NEWS OF HIGHERTHANEXPECTED AUSTRALIAN ECONOMIC GROWTH IN THE FIRST QUARTER THEN WEAKENING ON THE AUSTRALIAN DOLLAR'S WEAKNESS PRICES ROSE SLIGHTLY IN HONG KONG WHERE CAUTION DOMINATED TRADING AND A MIDDAY REBOUND WAS ALMOST WIPED OUT IN THE SESSION'S CLOSING MINUTES FOLLOWING EARLY LOSSES ON PROFITTAKING TAIPEI STOCKS ROSE LED BY FINANCIAL ISSUES ON POSITIVE SPECULATION ABOUT BANK DIVIDEND DISTRIBUTION MOVES MANILA SHARES SLIPPED ON FOREIGN SELLING AND REPORTS OF MARGINAL GROWTH IN PHILIPPINE GROSS NATIONAL PRODUCT FOR THE FIRST QUARTER SEOUL EQUITIES EDGED DOWN SNAPPING A FOURSESSION WINNING STREAK AMONG CORPORATE DEVELOPMENTS IN FRANKFURT MANNESMANN LOST 4 MARKS OR 16 TO 251 MARKS 15763 THE INDUSTRIAL COMPANY SAID ITS FIRSTQUARTER EARNINGS WERE CLEARLY NEGATIVE THOUGH IT DIDN'T SPECIFY THEM AND SALES FELL 43 TO 583 BILLION MARKS 366 BILLION FROM A YEAR EARLIER MANNESMANN SAID THAT IT HAD OPERATING LOSSES IN ALL DIVISIONS AND THAT IT EXPECTS TO POST A FIRSTHALF OPERATING LOSS FOR 1992 THE COMPANY REPORTED GROUP EARNINGS SLUMPED 76 TO 63 MILLION MARKS 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 9306020131 930602 CORRECTIONS & AMPLIFICATIONS FRANK ROBINSON WAS THE FIRST BLACK MANAGER OF THE SAN FRANCISCO GIANTS BASEBALL TEAM A PAGEONE ARTICLE YESTERDAY ABOUT REALESTATE TYCOON WALTER SHORENSTEIN MISTAKENLY SAID THAT DISTINCTION BELONGED TO DUSTY BAKER THE TEAM'S CURRENT MANAGER WARNER COMMUNICATIONS INC A UNIT OF TIME WARNER INC HAS NOT CALLED ITS 6 CONVERTIBLE SENIOR SUBORDINATED DEBENTURES DUE AUG 18 2001 FOR REDEMPTION ON AUG 18 AS REPORTED IN YESTERDAY'S REDEMPTION NOTICES COLUMN 9306020130 930602 WHO'S NEWS WAVEMAT INC WAVEMAT INC PLYMOUTH MICH RICHARD J DEXTER 54 YEARS OLD FORMERLY VICE PRESIDENT OF ENGINEERING FOR SILICON VALLEY GROUP INC'S TRACK DIVISION WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF MICROWAVE EQUIPMENT FOR PROCESSING ADVANCE MATERIALS MONIS SCHUSTER 62 WAS CONFIRMED AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER HE HAS SERVED AS ACTING CHAIRMAN PRESIDENT AND CHIEF EXECUTIVE SINCE RICHARD GARARD 47 LEFT THE COMPANY LAST SUMMER 9306020129 930602 INTERNATIONAL PHILIPPINES TRADE DEFICIT MANILA PHILIPPINES THE PHILIPPINES' TRADE DEFICIT WIDENED 52 IN MARCH TO 553 MILLION FROM 365 MILLION IN FEBRUARY ACCORDING TO REVISED FIGURES RELEASED BY THE NATIONAL STATISTICS OFFICE THE MARCH GAP IS NARROWER THAN THE TRADE DEFICIT FIGURES RELEASED TWO WEEKS AGO WHICH SHOWED THE GAP UP 56 TO 570 MILLION BASED ON MANUAL TALLIES 9306020128 930602 TECHNOLOGY & HEALTH APPLE'S CLAIMS DISMISSED IN MICROSOFT HP CASE SAN FRANCISCO A US DISTRICT COURT JUDGE AS EXPECTED GRANTED A MOTION TO DISMISS THE REMAINING CLAIMS AGAINST HEWLETTPACKARD CO AND MICROSOFT CORP IN A CLOSELY WATCHED SOFTWAREINFRINGEMENT LAWSUIT BROUGHT BY APPLE COMPUTER INC APPLE DIDN'T OPPOSE THE DECISION OF JUDGE VAUGHN WALKER SAYING THE DISMISSAL WILL FACILITATE A PROMPT APPEAL WHEN IT FILED ITS ACTION FIVE YEARS AGO APPLE A SUPPLIER OF PERSONAL COMPUTERS HAD HOPED TO STRIKE A BOLD BLOW AGAINST MICROSOFT THE WORLD'S LARGEST SUPPLIER OF SOFTWARE AND HEWLETTPACKARD A COMPUTER MAKER APPLE INTENDED TO PROVE THAT THE LOOK AND FEEL OF THE SOFTWARE THAT CONTROLS ITS MACINTOSH LINE OF COMPUTERS HAD BEEN ESSENTIALLY COPIED BY ITS TWO RIVALS AS THE CASE UNFOLDED HOWEVER THE COURT REPEATEDLY WHITTLED AWAY APPLE'S CLAIMS UNTIL JUST A FEW REMAINED A TRIAL ON THESE REMAINING ISSUES HAD BEEN SCHEDULED FOR LATER THIS MONTH JUDGE WALKER STILL MUST RULE ON APPORTIONING COURT COSTS AND LEGAL FEES AMONG THE PARTIES 9306020127 930602 FINANCING BUSINESS ROYAL BANK OF CANADA ROYAL BANK OF CANADA SAID IT AUTHORIZED A PRIVATE PLACEMENT OF 110 MILLION CANADIAN DOLLARS US865 MILLION OF FIXEDRATE SUBORDINATED DEBENTURES DUE JUNE 8 2023 THE DEBENTURES ARE TO BE PRICED TO YIELD 931 PROCEEDS OF THE ISSUE WILL BE USED FOR GENERAL BANKING PURPOSES AND TO ADD TO THE MONTREAL BANK'S CAPITAL BASE 9306020125 930602 DIVIDEND NEWS BOMBAY CO BOMBAY CO SAID ITS DIRECTORS APPROVED A 3FOR2 STOCK SPLIT PAYABLE JULY 1 TO STOCK OF RECORD JUNE 14 THE SPECIALTY RETAILER SAID IT HAS APPOINTED FIRST NATIONAL BANK OF BOSTON AS A DISBURSING AGENT TO PAY CASH TO SHAREHOLDERS IN LIEU OF ISSUING FRACTIONAL SHARES THE FORT WORTH TEXAS COMPANY CURRENTLY HAS 159 MILLION COMMON SHARES OUTSTANDING WHICH WILL INCREASE TO 238 MILLION ONCE THE SPLIT IS COMPLETE 9306020124 930602 WHO'S NEWS SATCON TECHNOLOGY CORP SATCON TECHNOLOGY CORP CAMBRIDGE MASS WILLIAM E STANTON 49 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF CHIEF OPERATING OFFICER OF THIS MAKER OF VIBRATION CONTROL SYSTEMS MR STANTON WAS ALSO NAMED A VICE PRESIDENT WITH HIS APPOINTMENTS EFFECTIVE JULY 1 HE WILL CONTINUE AS A DIRECTOR OF THE COMPANY AND WAS MOST RECENTLY VICE PRESIDENT FOR APPLIED SYSTEMS AND TECHNOLOGIES AT THE CHARLES STARK DRAPER LABORATORY ALSO IN CAMBRIDGE 9306020123 930602 LETTERS TO THE EDITOR A FUSILLADE FROM BOTH SIDES I KNOW YOUR ULTRALIBERAL WASHINGTON BUREAU CHIEF AL HUNT FANTASIZES ABOUT AN ALLDEMOCRAT CONGRESS BUT HE IS REALLY DREAMING IF HE THINKS THE BELEAGUERED TAXPAYERS ARE THRILLED ABOUT HIS PLAN TO HAVE THEM PICK UP THE TAB FOR HIS ONEPARTY VISION FOR AMERICA IN HIS MAY 17 EDITORIAL PAGE PIECE CAMPAIGN REFORM THAT INCUMBENTS LOVE TO HATE MR HUNT RAVES ABOUT SURPRISE THE DEMOCRATS' CAMPAIGN REFORM PACKAGE AN INCUMBENCYPROTECTION PLAN THAT WOULD GUARANTEE A LIBERAL MAJORITY ON CAPITOL HILL AND PUT REPUBLICANS ON THE ENDANGERED SPECIES LIST CLAIMS TO BE FINANCED WITH REVENUE RAISED BY ELIMINATING THE TAX DEDUCTION FOR LOBBYING EXPENSES EVEN THOUGH THIS REVENUE HAS BEEN EARMARKED FOR DEFICIT REDUCTION IN THE ADMINISTRATION'S OWN BUDGET PROPOSAL WHEN TAXPAYERS ARE ALREADY REELING FROM THE TAX AND SPEND CLINTON ADMINISTRATION THEY ARE IN NO MOOD TO ESTABLISH A NEW ENTITLEMENT PROGRAM FOR POLITICIANS BUT JUST LIKE HIS DEMOCRAT ALLIES ON THE HILL MR HUNT SEES THE TAXPAYERS' POCKETS AS THE CUREALL FOR AILING POLITICIANS MR HUNT DISMISSES THE SENATE REPUBLICAN REFORM PLAN SUGGESTING IT DOESN'T DO ENOUGH TO HELP POLITICAL CHALLENGERS HE FAILS TO MENTION THAT OUR PLAN WOULD PROHIBIT FRANKED MASS MAILINGS DURING AN ELECTION YEAR ESTABLISH A BROADCAST DISCOUNT TO REDUCE THE COST OF CAMPAIGN ADVERTISING PROHIBIT BUNDLING OF CAMPAIGN CONTRIBUTIONS AND ALLOW POLITICAL PARTIES TO GIVE EARLY SEED MONEY TO VIABLE CHALLENGERS UP TO 100000 ENACTMENT OF THESE REFORMS WOULD ALTER THE POLITICAL LANDSCAPE FOR THE BETTER AND WITHOUT COSTING TAXPAYERS A DIME THE SENATE GOP PLAN WOULD ALSO BAN POLITICAL ACTION COMMITTEES WHICH LAST YEAR CONTRIBUTED MORE THAN 119 MILLION TO CONGRESSIONAL INCUMBENTS AND ONLY 17 MILLION TO CHALLENGERS IN 1992 IN RACES WHERE CONGRESSMEN WERE SEEKING REELECTION INCUMBENTS RECEIVED 89 OF ALL PAC CONTRIBUTIONS CLEARLY A PACBAN WOULD DRY UP A MAJOR SOURCE OF SPECIALINTEREST FUNDING FOR INCUMBENTS AND DRAMATICALLY IMPROVE COMPETITION IN THE PROCESS MR HUNT MAY BE RIGHT WHEN HE IMPLIES THAT AN OUTRIGHT BAN ON PACS WOULD FACE A CONSTITUTIONAL CHALLENGE BUT THE SENATE REPUBLICAN BILL CONTAINS A FALLBACK PROVISION RESTRICTING INDIVIDUAL PAC CONTRIBUTIONS TO 1000 IN THE EVENT THAT A CHALLENGE SUCCEEDED THE 1000 CAP IS FAR STRONGER THAN THE ADMINISTRATION PLAN WHICH RETAINS THE CURRENT 5000 LIMIT ON INDIVIDUAL PAC CONTRIBUTIONS TO HOUSE CANDIDATES A SOP TO HOUSE DEMOCRATS WHO RECEIVED 52 OF THEIR FUNDS FROM PACS IN 1992 AND REDUCES THE LIMIT MODESTLY TO 2500 FOR CONTRIBUTIONS TO SENATE CANDIDATES YES I HAVE RECEIVED PUBLIC MONEY DURING MY CAMPAIGNS FOR OFFICE I WAS PLAYING BY THE RULES AS WERE MY DEMOCRAT OPPONENTS YET TODAY NEARLY FIVE YEARS AFTER I FORMALLY WITHDREW FROM THE 1988 RACE MY PRESIDENTIAL CAMPAIGN COMMITTEE IS STILL BEING AUDITED BY THE FEDERAL ELECTION COMMISSION WHICH SPEAKS VOLUMES ABOUT THE MASSIVE COSTLY BUREAUCRACY THE HUNT PLAN WOULD CREATE I AM PERFECTLY WILLING TO REPEAL ALL PUBLIC FUNDING FOR PRESIDENTIAL CAMPAIGNS DURING THE PAST SEVERAL YEARS I HAVE PERSONALLY STRUGGLED TO BRIDGE THE PARTISAN GAP SEPARATING REPUBLICANS AND DEMOCRATS ON THE CAMPAIGN FINANCE ISSUE I HAVE ALWAYS INSISTED THAT ANY REFORM BILL MUST BE BIPARTISAN IF IT IS TO EARN THE TRUST OF THE AMERICAN PEOPLE THAT'S WHY I JOINED WITH MAJORITY LEADER GEORGE MITCHELL IN COMMISSIONING A SIXMEMBER BIPARTISAN PANEL OF CAMPAIGN FINANCE EXPERTS TO DEVELOP A SET OF REFORM PROPOSALS I SUBSEQUENTLY INTRODUCED A REFORM BILL BASED ON THAT PANEL'S RECOMMENDATIONS TODAY AFTER YEARS OF DISCUSSION AND NEGOTIATION I CONTINUE TO SEEK THE COMMON GROUND JUST ANOTHER DAY IN WASHINGTON A PROMINENT NATIONAL NEWSPAPER ATTACKS THE OUTRAGEOUS ACTIONS OF A MEMBER OF CONGRESS CONFIDENCE IS FURTHER ERODED AND ANOTHER REPUTATION IS DAMAGED IT IS ALL SO ROUTINE THAT I WOULDN'T HAVE EVEN NOTICED EXCEPT FOR ONE THING AL HUNT'S MAY 17 ARTICLE WAS ABOUT ME MR HUNT REVIEWED THE REASONS FOR MY OPPOSITION TO CAMPAIGN FINANCE REFORM THE FACT THAT I ACTUALLY VOTED FOR CAMPAIGN FINANCE REFORM WAS NEVER MENTIONED THE MOTIVATION FOR THIS ALLEGED POSITION WAS MY RELIANCE ON PAC CONTRIBUTIONS THE FACT THAT MY ACTUAL RECEIPT OF PAC CONTRIBUTIONS IS SO LOW THAT IT WOULD QUALIFY UNDER THE PROPOSED REFORMS WAS NEVER MENTIONED MR HUNT'S ANALYSIS CONCLUDES WITH THE INCREDIBLE REVELATION THAT CAMPAIGN FUNDS WERE SPENT AT A PORSCHE/AUDI DEALERSHIP FOR CAR REPAIRS OMITTED WAS THIS THE DEALERSHIP ALSO SELLS FORDS AND A TAURUS IS REGISTERED TO MY CAMPAIGN THESE ARE JUST MORE EXAMPLES OF WHAT MANY AMERICANS ALREADY SUSPECT NO REPUTATION IS SO IMPORTANT THAT IT IS WORTH TAKING THE TIME TO CHECK FACTS THERE IS NO OBLIGATION TO REVEAL ANYTHING THAT MIGHT CONTRADICT A CONCLUSION THIS ARTICLE REVEALS A GREAT DEAL BUT LITTLE OF IT IS ABOUT MY CAMPAIGN IT SPEAKS VOLUMES ABOUT WHAT HAS HAPPENED TO AMERICAN JOURNALISM I'VE KNOWN AL HUNT FOR 15 YEARS THE AL HUNT I USED TO KNOW WOULD CHECK FACTS AND APPROACH A STORY WITH CURIOSITY AND NOT A CONCLUSION NONE OF THIS IS INTENDED TO ELICIT A CORRECTION I ONLY WANT ONE THING THE NEXT TIME YOU EDITORIALIZE ABOUT CYNICISM IN AMERICA OR THEORIZE ABOUT WHY GOOD PEOPLE LEAVE PUBLIC LIFE I HOPE THAT YOU'LL TAKE A GLANCE AT SOME OLD AND YELLOWING COPY OF THIS LETTER PERHAPS THEN YOU'LL REALIZE THAT YOU ARE PART OF THE PROBLEM 9306020122 930602 RULE OF LAW THE LEGAL PHILOSOPHY THAT PRODUCED LANI GUINIER BY CLINT BOLICK IN THE WEEKS SINCE LANI GUINIER'S NOMINATION AS ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS HER DEFENDERS IN THE CIVIL RIGHTS LOBBY HAVE ACCUSED CRITICS INCLUDING ME OF DISTORTION AND MUCH WORSE THE ARGUMENT THAT MS GUINIER'S VIEWS ARE TAKEN OUT OF CONTEXT IS REMARKABLE CONSIDERING THAT IT IS HER OWN WRITINGS THAT HAVE EVOKED THE FIRESTORM OF OPPOSITION FROM LIBERALS MODERATES AND CONSERVATIVES BUT THE LARGER QUESTION RAISED BY HER DEFENDERS IS AN IMPORTANT ONE WHAT EXACTLY IS LANI GUINIER'S CONTEXT THE ANSWER PUTS TO REST ANY CONTENTION THAT MS GUINIER IS ANYWHERE CLOSE TO THE MAINSTREAM ON CIVIL RIGHTS ISSUES MS GUINIER'S OPINIONS PLACE HER AT THE CUTTING EDGE OF CRITICAL RACE THEORY CRT A PROFOUNDLY LEFTWING SCHOOL OF THOUGHT THAT HAS REDEFINED THE OUTER BOUNDARIES OF RADICALISM IN LEGAL ACADEMIA AS MICHAEL GERHARDT AND THOMAS D ROWE JR DESCRIBE IT IN CONSTITUTIONAL THEORY CRITICAL RACE THEORY AIMS TO EXPOSE WHAT ADHERENTS SEE AS THE INEFFECTIVE EFFORTS AND COMPLACENCY OF MAINSTREAM LIBERALS ON BEHALF OF CIVIL RIGHTS AND CIVIL JUSTICE LEADING CRT SCHOLAR RICHARD DELGADO OF THE UNIVERSITY OF COLORADO WRITES WE HAVE BEEN EXAMINING THE RELATION BETWEEN KNOWLEDGE ESPECIALLY LEGAL KNOWLEDGE AND POWER AND EXPLORING THE ROLE OF LIBERALCAPITALIST IDEOLOGY IN MAINTAINING AN UNJUST STATUS QUO MESSRS GERHARDT AND ROWE EXPLAIN THAT CRITICAL RACE THEORISTS APPLY PSYCHOANALYTIC THEORY AND COGNITIVE PSYCHOLOGY TO SHOW THE PERVASIVENESS OF UNCONSCIOUS RACISM IN AMERICAN SOCIETY CONCLUDING THAT CURRENT CIVIL RIGHTS SCHOLARSHIP STATUTES AND DOCTRINE DO NOT RECOGNIZE OR ADEQUATELY DEAL WITH THE PERVASIVE DEGREE TO WHICH RACISM BOTH MANIFEST AND UNCONSCIOUS TAINTS VIRTUALLY EVERY KIND OF POWER STRUCTURE IN AMERICA THIS ANALYSIS HAS DRAMATIC IMPLICATIONS FOR CONSTITUTIONAL LAW FOR EXAMPLE GEORGETOWN LAW PROFESSOR CHARLES HAMILTON ARGUES THAT SINCE RACISM IS PERVASIVE AND LARGELY UNCONSCIOUS REQUIRING EVIDENCE OF RACIAL MOTIVATION TO STRIKE DOWN GOVERNMENT ACTIONS DOESN'T MAKE SENSE INSTEAD HE URGES AN EQUALITYOFRESULTS STANDARD WHICH MS GUINIER EMBRACES THIS WOULD JEOPARDIZE ANY POLICY SUCH AS SCHOOL DISTRICT BOUNDARIES OR COLLEGE ADMISSIONS TESTS THAT DOES NOT DELIVER RACIALLY PROPORTIONATE OUTCOMES CRITICAL RACE THEORISTS ALSO AGITATE FOR REGULATION OF HATE SPEECH AND RACIAL QUOTAS FOR LAW SCHOOL FACULTIES THESE EXTREME POSITIONS PROVOKED A REJOINDER FROM HARVARD LAW PROFESSOR RANDALL KENNEDY WHO IN A 1989 HARVARD LAW REVIEW ARTICLE ATTACKED CRITICAL RACE THEORISTS FOR THEIR FAILURE TO EXAMINE NONRACIAL CAUSES OF DISPROPORTIONATE OUTCOMES SUCH AS POVERTY AND INFERIOR EDUCATIONAL OPPORTUNITIES HE CRITICIZED THEIR TENDENCY TO HOMOGENIZE THE EXPERIENCE OF PERSONS OF COLOR AND TO MINIMIZE THE HETEROGENEITY OF OPINIONS HELD AND ARTICULATED BY PERSONS OF COLOR THIS CRITIQUE IN TURN SPARKED A CRT FUSILLADE QUESTIONING PROF KENNEDY'S SINCERITY AND OBJECTIVITY THE SAME TYPE OF AD HOMINEM ATTACKS WIELDED BY MS GUINIER'S SUPPORTERS AGAINST HER CRITICS MS GUINIER'S CAREER EXEMPLIFIES THE CRT WORLD VIEW HER ARTICLES CITE A VIRTUAL WHO'S WHO OF CRITICAL RACE THEORISTS SHE HAS TAUGHT SEMINARS ON CRT AT THE UNIVERSITY OF PENNSYLVANIA HER MOST COMPREHENSIVE WORK A NOVEMBER 1991 ARTICLE ON VOTING RIGHTS IN THE VIRGINIA LAW REVIEW WAS PRESENTED IN DRAFT FORM AT A CRT WORKSHOP AT THE UNIVERSITY OF COLORADO ONE CANNOT READ HER WRITINGS WITHOUT BEING STRUCK BY THE RACECONSCIOUSNESS THAT PERMEATES THEM HER AMERICA IS ONE IN WHICH THE NATION IS DIVIDED INTO HOSTILE RACIAL BLOCS AND IN WHICH ONLY RADICAL CHANGES CAN DELIVER RACIAL JUSTICE THIS VIEW LEADS HER FOR INSTANCE TO EMBRACE THE NOTION OF AUTHENTIC BLACK REPRESENTATIVES WHICH SHE DEFINES AS THOSE WHO ARE ELECTED BY BLACKS AND ARE DESCRIPTIVELY SIMILAR TO THEIR CONSTITUENTS IN OTHER WORDS THEY ARE POLITICALLY PSYCHOLOGICALLY AND CULTURALLY BLACK THE VOTING RIGHTS ACT SHE ARGUES COMPELS ELIMINATION OF MAJORITARIAN VOTING PROCESSES SUCH AS SINGLEMEMBER DISTRICTS AND RUNOFF ELECTIONS THAT FRUSTRATE ELECTION OF AUTHENTIC BLACK REPRESENTATIVES LIKEWISE IN CLASSIC CRT FASHION SHE WRITES THAT THE DOCUMENTED PERSISTENCE OF RACIAL POLARIZATION DEFEATS THE ASSUMPTIONS SUPPORTING THE LEGITIMACY OF MAJORITY RULE SIMPLY PUT RACISM EXCLUDES MINORITIES FROM EVER BECOMING PART OF THE GOVERNING COALITION MEANING THAT THE WHITE MAJORITY WILL BE PERMANENT WITHOUT CONCEDING THE RADICALISM OF HER VIEWS MS GUINIER'S DEFENDERS DISINGENUOUSLY SEEK TO PLAY DOWN THEIR SIGNIFICANCE BY TRIVIALIZING THE IMPORTANCE OF THE POSITION IT IS THE WHITE HOUSE NOT THE ASSISTANT ATTORNEY GENERAL THAT SETS CIVIL RIGHTS POLICY THEY ARGUE THIS IS TRUE ONLY IN THE BROADEST TERMS MS GUINIER'S CONFIRMATION WOULD PLACE HER AT THE HEAD OF AN ARSENAL OF 200 LAWYERS WITH LAW ENFORCEMENT AUTHORITY OVER VOTING RIGHTS HOUSING EDUCATION EMPLOYMENT AND PRISONS HER DAYTODAY DISCRETIONARY DECISIONS WOULD HAVE ENORMOUS REALWORLD RAMIFICATIONS IN MANY CIRCUMSTANCES SHE WOULD NOT EVEN HAVE TO FILE LAWSUITS TO EFFECT CHANGE SHE CHAMPIONS THE USE OF SETTLEMENTS SECURING VOLUNTARY COMPLIANCE BY THREATENING LITIGATION THIS SAME TACTIC INDUCED MANY LOCAL GOVERNMENTS TO ADOPT RACIAL QUOTAS AND DISRUPTIVE BUSING SCHEMES IN THE 1970S AND COULD BE REVIVED AND EXPANDED TO EFFECTUATE THE CIVIL RIGHTS DIVISION'S NEW AGENDA MS GUINIER'S DEFENDERS ALSO LIKE TO PORTRAY HER AS A BENIGN ACADEMIC WHO WOULD NOT IMPLEMENT HER THEORETICAL MUSINGS AS THE NATION'S TOP CIVIL RIGHTS LAW ENFORCEMENT OFFICIAL BUT THERE IS NOTHING EQUIVOCAL ABOUT HER VIEWS ON THE PROPER ENFORCEMENT OF THE VOTING RIGHTS ACT MOREOVER HER CAREER HAS HAD A STEADY ACTIVIST TRAJECTORY FOR EIGHT YEARS PRIOR TO HER ACADEMIC POST SHE WORKED FOR THE NAACP LEGAL DEFENSE AND EDUCATIONAL FUND INC LDF WHICH HAS PURSUED AN INCREASINGLY RADICAL LEGAL AGENDA THE LDF DURING HER TENURE FOUGHT SUCCESSFULLY IN KANSAS CITY FOR A COURTIMPOSED DOUBLING OF THE CITY'S PROPERTY TAX RATE TO FUND A MASSIVE DESEGREGATION REMEDY THE LDF ALSO ARGUED UNSUCCESSFULLY FOR THE PERPETUATION OF FORCED BUSING IN NORFOLK VA OKLAHOMA CITY AND AUSTIN TEX EVEN THOUGH THE SCHOOL SYSTEMS WERE FULLY DESEGREGATED IT CHALLENGED EMPLOYMENT TESTING WHILE SUPPORTING RACIAL QUOTAS AT BOTTOM WHAT IS MOST DISTURBING ABOUT MS GUINIER'S VIEWS IS THE PERVASIVENESS OF THE RACIAL PRISM THROUGH WHICH SHE VIEWS EVERY ISSUE HER CONFIRMATION WOULD REIGNITE THE SMOLDERING EMBERS OF RACIAL DIVISION WHILE IMPERILING SOME OF THE VERY DEMOCRATIC INSTITUTIONS ON WHICH OUR NATION'S MORAL CLAIM IS STAKED MR BOLICK IS LITIGATION DIRECTOR OF THE INSTITUTE FOR JUSTICE IN WASHINGTON AND A VETERAN OF THE JUSTICE DEPARTMENT'S CIVIL RIGHTS DIVISION 198687 9306020121 930602 WHO'S NEWS FIRST BOSTON NAMES AHMAD TO HIGHYIELD FINANCE GROUP POST NEW YORK FIRST BOSTON CORP IN THE FACE OF AN EXODUS BY TOP INVESTMENT BANKERS AND TRADERS ANNOUNCED A NEW HIRE A DIRECTOR OF ITS HIGHYIELD FINANCE GROUP THE NEW DIRECTOR ONE OF THREE IN THE FIRM'S JUNKBOND DIVISION IS ZUBAID AHMAD 32 FORMERLY HEAD OF THE CAPITAL MARKETS GROUP AT WASSERSTEIN PERELLA & CO MR AHMAD HAS ALSO WORKED AS AN INVESTMENT BANKER AT DREXEL BURNHAM LAMBERT INC AND ASSISTANT TREASURER IN THE CREDIT AUDIT DIVISION OF CHASE MANHATTAN BANK FIRST BOSTON CREATED THE POSITION BECAUSE OF THE STRONG VOLUME OF BUSINESS SO FAR THIS YEAR SAID MICHAEL C JOHNSON HEAD OF HIGHYIELD FINANCE ISSUANCE IS RUNNING THREE TIMES AHEAD OF LAST YEAR'S NEW ISSUE VOLUME AND MR AHMAD'S CONTACTS AMONG HIGHYIELD ISSUERS ARE SEEN BENEFITING THE FIRM MR JOHNSON ADDED FIRST BOSTON HAS RECENTLY HAD A SERIES OF DEFECTIONS BY SENIOR BANKERS OVER PAY THEY PERCEIVE AS BELOW THE LEVEL PAID BY OTHER FIRMS FIRST BOSTON IS THE US UNIT OF CS FIRST BOSTON GROUP INC A UNIT OF SWISSBASED CS HOLDING 9306020120 930602 POLITICS & POLICY A GROWING NUMBER OF WELLCONNECTED WOMEN LAND KEY POSITIONS IN CLINTON ADMINISTRATION BY LAURIE MCGINLEY STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON HARRIET BABBITT RUTH HARKIN AND SHEILA ANTHONY ALL HAVE THREE THINGS IN COMMON POLITICALLY CORRECT HUSBANDS NEW JOBS IN THE ADMINISTRATION AND FRIENDSHIPS WITH HILLARY RODHAM CLINTON LIKE PRESIDENT CLINTON WITH HIS WIDE NETWORK OF FRIENDS KNOWN AS FRIENDS OF BILL'S OR FOBS MRS CLINTON BOASTS A FORMIDABLE ARRAY OF CONTACTS A NUMBER OF WHOM NOW WORK FOR HER HUSBAND MANY LIKE MRS CLINTON ARE CONSUMMATE BABYBOOMER WOMEN OVERACHIEVERS WHO HAVE LONG JUGGLED WORK AND FAMILIES FOR YEARS THEY'VE LIVED IN THE SHADOWS OF THEIR POLITICALLY POWERFUL HUSBANDS SOMETIMES OUTEARNING THEM AND ARE EAGER TO GIVE PUBLIC POLICY JOBS A TRY WE FEEL THAT THIS IS OUR TIME SAYS DORIS MATSUI WHO LANDED A JOB IN THE WHITE HOUSE AND IS MARRIED TO REP ROBERT MATSUI A CALIFORNIA DEMOCRAT AND SENIOR MEMBER OF THE WAYS AND MEANS COMMITTEE WE SHOULD BE ABLE TO DO WHAT WE WANT TO DO HATTIE BABBITT THE WIFE OF INTERIOR SECRETARY BRUCE BABBITT IS THE NEW AMBASSADOR TO THE ORGANIZATION OF AMERICAN STATES WHILE RUTH HARKIN THE WIFE OF DEMOCRATIC SEN THOMAS HARKIN OF IOWA HAS BEEN NAMED HEAD OF A US AGENCY TO ENCOURAGE INVESTMENT IN DEVELOPING NATIONS MRS MATSUI IS THE PRESIDENT'S NEW DEPUTY ASSISTANT FOR PUBLIC LIAISON ANNE BINGAMAN THE WIFE OF DEMOCRATIC SEN JEFF BINGAMAN OF NEW MEXICO AND SHEILA ANTHONY THE WIFE OF EXREP BERYL ANTHONY OF ARKANSAS HAVE SNAGGED SENIOR JUSTICE DEPARTMENT POSTS MRS CLINTON'S SPOKESWOMAN LISA CAPUTO SAYS MRS CLINTON DIDN'T HAVE ANY PERSONAL INVOLVEMENT IN THE HIRINGS SAYING THE PRESIDENT FELT EACH ONE WAS QUALIFIED HARRIETT WOODS PRESIDENT OF THE NATIONAL WOMEN'S POLITICAL CAUCUS ADDS THESE WOMEN ARE AS IMPRESSIVE OR MORE SO THAN THEIR HUSBANDS MRS BABBITT AND MRS HARKIN FOR EXAMPLE ARE POPULAR POLITICAL FIGURES IN THEIR OWN RIGHT MRS HARKIN HELD AN ELECTIVE POSITION COUNTY ATTORNEY FOR STORY COUNTY IOWA BEFORE HER HUSBAND DID AND BEFORE JOINING THE ADMINISTRATION MRS BABBITT WAS BEING URGED TO RUN FOR THE SENATE NEXT YEAR NEVERTHELESS THESE WELLCONNECTED SPOUSES HAVE DOUBTLESS BENEFITED FROM THEIR PERSONAL TIES TO MRS CLINTON IF ONLY BY BEING KNOWN QUANTITIES TO THE WHITE HOUSE MOREVER THE FIRST LADY HAS A KEEN INTEREST IN POLITICAL SPOUSES FRIENDS SAY YOU COULDN'T QUANTIFY HER INTEREST IN THIS AREA MRS HARKIN NOTES POWERS PAIRS AREN'T NEW TO WASHINGTON OF COURSE RECENT ONES INCLUDED THE DOLES THE CHENEYS AND THE GRAMMS BUT THE CLINTONS DETERMINED TO PLACE QUALIFIED WOMEN IN SENIOR POSITIONS ARE PRODUCING A BUMPER CROP IS THIS A GOLDEN AGE FOR POLITICAL SPOUSES THERE'S BEEN A SEA CHANGE IN A SHORT PERIOD OF TIME SAYS WASHINGTON ATTORNEY MARC MILLER WHO WROTE A 1985 ADVICE BOOK FOR POLITICAL SPOUSES PARTLY IT'S DEMOGRAPHICS THIS IS THE FIRST GENERATION OF PROFESSIONAL WOMEN TO COME OF AGE SAYS JANE DANOWITZ EXECUTIVE DIRECTOR OF THE WOMEN'S CAMPAIGN FUND ANALYSTS SAY THE TREND CARRIES SOME RISKS PEOPLE HAVE TO BE SENSITIVE TO POTENTIAL CONFLICTS SAYS MR MILLER IT WOULD BE A BIT STICKY SAYS REPUBLICAN ANALYST KEVIN PHILLIPS IF THE PRESIDENT WANTED TO FIRE SAY THE SPOUSE OF A US SENATOR STILL THEY SAY THE TREND IS BOUND TO ACCELERATE MRS BABBITT SAYS SHE TALKED TO MRS CLINTON ABOUT WORKING FOR THE ADMINISTRATION BUT HAS NO IDEA IF THAT PLAYED A ROLE IN HER GETTING THE POST CLEARLY MR CLINTON IS A FAN HE ONCE TOLD MR BABBITT THAT THEY BOTH MARRIED ABOVE THEMSELVES BOTH MR BABBITT AND MR CLINTON SERVED THEIR STATES AS ATTORNEY GENERAL AND LATER AS GOVERNOR MR CLINTON IN ARKANSAS AND MR BABBITT IN ARIZONA AND THE COUPLES SPENT A LOT OF TIME TOGETHER AT GOVERNORS' MEETINGS IN ANY CASE MRS BABBITT AN ATTORNEY WHO SPEAKS FLUENT SPANISH AND HAS TRAVELED EXTENSIVELY THROUGHOUT LATIN AMERICA MONITORING ELECTIONS THERE IS A NATURAL FOR THE OAS JOB ACQUAINTANCES SAY MRS CLINTON ALSO HAS A PENCHANT FOR TURNING RIVALS INTO ALLIES SHE DEVELOPED A CAMARADERIE WITH MRS HARKIN DURING LAST YEAR'S PRESIDENTIAL PRIMARIES WHEN MR HARKIN BOWED OUT HE ENDORSED MR CLINTON AND BOTH HARKINS TRAVELED ON BEHALF OF THE ARKANSAN AN EXPERIENCED CORPORATE ATTORNEY MRS HARKIN WAS NAMED PRESIDENT OF THE OVERSEAS PRIVATE INVESTMENT CORP DID MRS CLINTON HELP HER NO COMMENT SHE SAYS ADDING SHE NEVER DISCUSSED THE MATTER WITH HER MRS CLINTON HAS KNOWN SHEILA ANTHONY WHO HAILS FROM THE PRESIDENT'S HOMETOWN OF HOPE ARK FOR YEARS AN ATTORNEY SHE'S THE SISTER OF VINCE FOSTER A FORMER MEMBER OF MRS CLINTON'S LITTLE ROCK LAW FIRM AND NOW DEPUTY WHITE HOUSE COUNSEL BOTH MR AND MRS CLINTON WERE GENUINELY PLEASED WHEN MRS ANTHONY SAID SHE WANTED A JOB MR ANTHONY SAYS ORIGINALLY SLATED TO BE HEAD OF LEGISLATIVE AFFAIRS FOR THE COMMERCE DEPARTMENT SHE HAS SINCE SWITCHED TO THE SAME JOB AT JUSTICE ANNE BINGAMAN WHO WILL BE THE FIRST WOMAN TO HEAD THE JUSTICE DEPARTMENT'S ANTITRUST DIVISION MET MRS CLINTON DURING LAST YEAR'S CAMPAIGN BUT DOESN'T KNOW HER WELL ACQUAINTANCES SAY HER SELECTION SET OFF SOME GRUMBLING AMONG WASHINGTON LAWYERS WHO HAD PEGGED ROBERT PITOFSKY THE FORMER DEAN OF GEORGETOWN LAW SCHOOL AND AN ANTITRUST EXPERT FOR THE JOB BUT PHOENIX ATTORNEY PAUL ECKSTEIN SAYS HIS FORMER PARTNER SHOULDN'T BE UNDERESTIMATED SHE'S VERY INTELLIGENT AND HAS HAD A LOT OF EXPERIENCE TAKING ON MAJOR COMPANIES IN MAJOR CASES DORIS MATSUI A LONGTIME FRIEND OF VICE PRESIDENT AL GORE AND HIS WIFE TIPPER MET THE FIRST LADY THREE YEARS AGO WHEN MRS CLINTON SPOKE TO THE CONGRESSIONAL SPOUSES GROUP SHE WAS ABLE TO ADDRESS OUR CONCERNS ABOUT OUR FAMILIES AND HOW WE DEAL WITH OUR ROLE AS SPOUSES SHE SAYS ACTIVE IN SEVERAL VOLUNTEER ORGANIZATIONS SHE SPEARHEADED THE CONGRESSIONAL SPOUSES' CAMPAIGN EFFORTS FOR THE DEMOCRATIC TICKET AND HOSTED A TEA FOR MRS CLINTON AND MRS GORE AT LAST YEAR'S CONVENTION SHE LATER SERVED ON MR CLINTON'S TRANSITION BOARD SOME HUSBANDS ALSO ARE LANDING JOBS IN THE ADMINISTRATION FORMER NEWSPAPER REPORTER AND PUBLIC RELATIONS EXECUTIVE JAMES O'HARA IS PRESS SECRETARY TO DAVID KESSLER COMMISSIONER OF THE FOOD AND DRUG ADMINISTRATION HE'S MARRIED TO MARLA ROMASH MR GORE'S PRESS SECRETARY MOREOVER JOYCELYN ELDERS MR CLINTON'S NOMINEE FOR SURGEON GENERAL HAS TALKED TO OFFICIALS ABOUT A JOB FOR HER HUSBAND OLIVER A HIGH SCHOOL BASKETBALL COACH IN ARKANSAS A STRONG POSSIBILITY EXECUTIVE DIRECTOR OF THE PRESIDENT'S COUNCIL ON PHYSICAL FITNESS AND SPORTS WHICH PAID 90000 UNDER PRESIDENT BUSH 9306020119 930602 MARKETING & MEDIA PACT CREATING NEWS SERVICE IN SPANISH IS NEARLY FINAL TELEMUNDO GROUP INC SAID IT IS IN FINAL NEGOTIATIONS WITH REUTERS TELEVISION AND THE BRITISH BROADCASTING CORP TO FORM A 24HOUR SPANISHLANGUAGE TELEVISION NEWS SERVICE THE SERVICE TO BE DISTRIBUTED BY SATELLITE FROM MIAMI IS DESIGNED TO BE CARRIED ON CABLE SYSTEMS IN LATIN AMERICA THE US AND EUROPE AND WOULD ALSO PROVIDE TWO DAILY HALFHOUR NEWSCASTS TO TELEMUNDO'S SPANISHLANGUAGE BROADCAST NETWORK IN THE US REUTERS A UNIT OF REUTERS HOLDINGS PLC WOULD CONTRIBUTE VIDEO FROM ITS 400 CAMERA CREWS WORLDWIDE AND THE BBC'S WORLD SERVICE TELEVISION WOULD PROVIDE PROGRAMMING TAILORED TO A SPANISHSPEAKING AUDIENCE TELEMUNDO WOULD HANDLE PRODUCTION OPERATIONS AND SOME NEWS GATHERING THE SERVICE WOULD HAVE COMPETITION NBC A UNIT OF GENERAL ELECTRIC CO RECENTLY LAUNCHED A SPANISHLANGUAGE VERSION OF ITS NBC NEWS CHANNEL AND TURNER BROADCASTING SYSTEM INC'S CABLE NEWS NETWORK HAS TALKED ABOUT LAUNCHING A SIMILAR SERVICE TELEMUNDO'S PRESIDENT AND CHIEF EXECUTIVE JOAQUIN BLAYA BEGAN PITCHING THE SERVICE TO HISPANIC BROADCASTERS AND CABLE OPERATORS YESTERDAY AT A MEETING IN LOS ANGELES HE SAID HE EXPECTS NEGOTIATIONS TO BE COMPLETE IN TWO WEEKS AND THE SERVICE TO BE RUNNING BY YEAR'S END MR BLAYA WOULDN'T ESTIMATE THE COST OF THE SERVICE OR WHEN IT WOULD BECOME PROFITABLE 9306020118 930602 YIELDS ON CDS FINISH WEEK LITTLE CHANGED NEW YORK YIELDS ON CERTIFICATES OF DEPOSIT AT MAJOR BANKS AND BROKERAGE FIRMS WERE LITTLE CHANGED FOR THE WEEK ENDED YESTERDAY THE AVERAGE YIELD ON SIXMONTH SMALLDENOMINATION SAVINGS CDS REMAINED AT 267 WHILE THE AVERAGE YIELD ON FIVEYEAR SAVINGS CDS INCHED UP TO 479 FROM 478 ACCORDING TO AN 18BANK SURVEY BY BANXQUOTE MONEY MARKETS THE WILMINGTON DEL INFORMATION SERVICE SAID THE AVERAGE YIELD ON SIXMONTH BROKERSOLD CDS ROSE TO 318 FROM 313 ON FIVEYEAR BROKERSOLD CDS THE AVERAGE YIELD EASED TO 525 FROM 526 ON LARGE DENOMINATION JUMBO CDS WHICH TYPICALLY REQUIRE DEPOSITS OF 90000 AND MORE THE AVERAGE YIELD ON A SIXMONTH CERTIFICATE ROSE TO 278 FROM 277 ON FIVEYEAR JUMBOS THE AVERAGE YIELD WAS UNCHANGED AT 498 ACCORDING TO BANXQUOTE 9306020117 930602 TREASURY PLANS SALE OF 24 BILLION IN BILLS WASHINGTON THE TREASURY WILL SELL ABOUT 24 BILLION IN SHORTTERM BILLS MONDAY TO REDEEM 24 BILLION IN MATURING BILLS THE OFFERING WILL BE DIVIDED EVENLY BETWEEN 13WEEK AND 26WEEK BILLS MATURING ON SEPT 9 1993 AND DEC 9 1993 RESPECTIVELY THE CUSIP NUMBER FOR THE THREEMONTH BILLS IS 912794F66 THE CUSIP NUMBER FOR THE SIXMONTH BILLS IS 912794G81 NONCOMPETITIVE TENDERS FOR THE BILLS AVAILABLE IN MINIMUM 10000 DENOMINATIONS MUST BE RECEIVED BY NOON EDT MONDAY AT THE TREASURY OR AT FEDERAL RESERVE BANKS OR BRANCHES COMPETITIVE TENDERS FOR THE BILLS MUST BE RECEIVED BY 1 PM EDT 9306020116 930602 INTERNATIONAL US AUSTRALIA ESCALATE BATTLE OVER AIR ACCESS QANTAS TO LOSE SOME FLIGHTS IF NORTHWEST IS FORCED TO CURB JAPAN SERVICE BY WALL STREET JOURNAL STAFF REPORTERS GREGORY N RACZ IN WASHINGTON AND S KARENE WITCHER IN SYDNEY AUSTRALIA THE US AND AUSTRALIA ESCALATED THEIR WAR OVER AIRLINE ACCESS WITH EACH CURBING COMPETITOR'S ROUTES THE AUSTRALIAN GOVERNMENT SAID YESTERDAY IT WILL HALT AT THE END OF THE MONTH CERTAIN NORTHWEST AIRLINES FLIGHTS BETWEEN JAPAN AND AUSTRALIA NORTHWEST CURRENTLY FLIES THE AFFECTED NEW YORKOSAKASYDNEY ROUTE THREE TIMES A WEEK AUSTRALIA CLAIMS THAT NORTHWEST VIOLATED CAPACITY RULES BY PICKING UP MORE THAN 50 OF ITS PASSENGERS IN OSAKA JAPAN WE'VE GOT TO PROVIDE A REASONABLE DEAL FOR OUR OWN AUSTRALIAN CARRIERS AND I MAKE NO APOLOGY FOR THAT SAID BOB COLLINS AUSTRALIA'S TRANSPORTATION MINISTER IN RETALIATION THE US TRANSPORTATION DEPARTMENT YESTERDAY SAID IT WILL FORCE QANTAS AIRWAYS AUSTRALIA'S FLAGSHIP CARRIER TO CUT THREE OF ITS 10 WEEKLY NONSTOP FLIGHTS BETWEEN SYDNEY AUSTRALIA AND LOS ANGELES IMMEDIATELY AFTER THE AUSTRALIAN GOVERNMENT IMPOSES ITS RESTRICTIONS THE CLINTON ADMINISTRATION IN A TEST OF ITS INTERNATIONAL AVIATION POLICY IS SIGNALING THAT IT PLANS TO FIGHT TO PROTECT US AIRLINES' ACCESS TO OVERSEAS MARKETS WASHINGTON IS EAGER TO HELP THE US AIRLINE INDUSTRY WHICH HAS LOSSES OF 10 BILLION SINCE 1989 AND IS STRUGGLING TO PULL OUT OF ITS FINANCIAL TAILSPIN BUT AUSTRALIA AND OTHER NATIONS SEEM EQUALLY DETERMINED TO FEND OFF HUNGRY US CARRIERS WILLING TO DISCOUNT FARES MANY COUNTRIES INCLUDING JAPAN WHICH HAS ALREADY LIMITED CERTAIN FLIGHTS OF UNITED AIRLINES A UNIT OF UAL CORP CONTEND THAT US CARRIERS ARE POACHING PASSENGERS WHO WOULD OTHERWISE PATRONIZE NATIONAL FLAG CARRIERS CHIEF EXECUTIVES FROM JAPAN AIRLINES BRITISH AIRWAYS AIR FRANCE AND OTHER FOREIGN AIRLINES PLAN TO PRESENT THEIR CASE IN WASHINGTON THIS WEEK BEFORE THE NATIONAL COMMISSION TO ENSURE A STRONG COMPETITIVE AIRLINE INDUSTRY AUSTRALIA'S ACTION CAPS SEVERAL MONTHS OF FRICTION BETWEEN WASHINGTON AND CANBERRA OVER THE JAPANAUSTRALIA ROUTE MR COLLINS THE AUSTRALIAN TRANSPORTATION MINISTER SAID THAT NORTHWEST MAY REAPPLY TO HAVE TWO OF THE THREE WEEKLY FLIGHTS REINSTATED SUBJECT TO THE SAME PASSENGER CAPS NORTHWEST A UNIT OF WINGS HOLDINGS INC SAID IT AGREED ONLY UNDER DURESS TO AUSTRALIA'S STIPULATION THAT IT LIMIT THE PERCENTAGE OF ITS OSAKASYDNEY PASSENGERS TO HALF OF THE TOTAL ON ITS NEW YORKOSAKASYDNEY ROUTE BUT THE AIRLINE ARGUES THE 50 RULE VIOLATES THE USAUSTRALIAN AVIATION TREATY AND UNFAIRLY BOUNDS ITS JAPANESE OPERATIONS SOME 40 OF NORTHWEST'S PASSENGERS ON THE DISPUTED FLIGHTS ORIGINATE IN NEW YORK ACCORDING TO THE AIRLINE'S FIGURES IN SIDING WITH NORTHWEST THE TRANSPORTATION DEPARTMENT ISSUED A STATEMENT CALLING THE AUSTRALIAN RESTRICTION UNJUSTIFIABLE AND UNREASONABLE THE DEPARTMENT WHICH HAD HOPED THE DISPUTE COULD BE RESOLVED THROUGH ARBITRATION SAID IT WAS DISAPPOINTED WITH AUSTRALIA'S DECISION TO SUSPEND THE NORTHWEST SERVICE THE DEPARTMENT IS CONSIDERING WHETHER TO TAKE FURTHER ACTION IN ADDITION TO TRIMMING THE QANTAS FLIGHTS 9306020115 930602 LETTERS TO THE EDITOR SMILE WHEN YOU REVILE SAM HOUSTON YOUR APRIL 22 PAGEONE ARTICLE CONCERNING SAM HOUSTON DID A GOOD JOB DESCRIBING THE PETTY BICKERING CARRIED ON BY THE DESCENDANTS OF GREAT MEN A VERY WIDESPREAD OCCURRENCE HOWEVER YOUR REPORTERS MISSED THE BOAT WHEN THEY ATTEMPTED TO REPORT ON TEXAS HISTORY TEXAS PATRIOTS DID NOT DECLARE INDEPENDENCE SO THAT MR HOUSTON AND HIS ASSOCIATES COULD CONTROL THE WHOLE TERRITORY ANY MORE THAN THE US DECLARATION OF INDEPENDENCE WAS SIGNED SO THAT GEORGE WASHINGTON COULD CONTROL THE 13 COLONIES IT WAS DECLARED BECAUSE ANTONIO LOPEZ DE SANTA ANNA PRESIDENT OF MEXICO ANNOUNCED THE NULLIFICATION OF THE MEXICAN CONSTITUTION OF 1824 A DOCUMENT SIMILAR THE US CONSTITUTION AND PROCLAIMED HIMSELF DICTATOR ALTHOUGH SANTA ANNA'S VICTORY AT THE ALAMO WAS DUE MAINLY TO OVERWHELMING NUMBERS HIS 6000 TROOPS WERE NOT LARGELY UNARMED PEASANTS THEY WERE WELLFED SMARTLY UNIFORMED ARMED WITH MODERN MUSKETS VETERANS AND GOOD FIGHTERS HIS OFFICER CORPS WAS COMPETENT AND PROFESSIONAL AUGMENTED WITH NUMEROUS EUROPEANS VETERANS OF THE NAPOLEONIC WARS AT THAT TIME BRITISH ARMY INSTRUCTIONS WARNED THAT ASSAULTING FORTIFIED AMERICAN RIFLEMEN COULD BE DONE ONLY WITH UNACCEPTABLE LOSSES THE BRITISH HAD LEARNED THEIR LESSON FROM ANDREW JACKSON AT NEW ORLEANS WHERE THE SUTHERLAND HIGHLANDERS PROBABLY THE FINEST TROOPS OF THE TIME WERE MAULED SANTA ANNA LEARNED HIS LESSON FROM WILLIAM BARRET TRAVIS AND 181 OTHER FREEDOM FIGHTERS AT THE ALAMO SAM HOUSTON WAS VASTLY OUTNUMBERED HIS RETREAT TO SAN JACINTO ALTHOUGH NOT POPULAR WAS UNQUESTIONABLY NECESSARY AGAIN SANTA ANNA'S TROOPS WERE NOT CONSCRIPTS BUT WELLTRAINED REGULAR TROOPS THIS ABETTED THEIR DOWNFALL WELL ORGANIZED AND TRAINED TO FIGHT AS A UNIT THEY WERE INEFFECTIVE AT FIGHTING ON A MANTOMAN BASIS AS THE TEXANS STORMED THEIR CAMP MEXICAN OFFICERS NEVER HAD THE CHANCE TO COORDINATE A DEFENSE AS THE GREAT GRANDSON OF SAMUEL MAVERICK YALE COLLEGE CLASS OF 1825 SIGNER OF THE DECLARATION OF INDEPENDENCE OF THE REPUBLIC OF TEXAS AND THE PERSON FROM WHOM THE WORD MAVERICK CAME I WRITE TO TELL YOU THAT WHEN YOU PRINTED THAT DIRTY STORY ABOUT SAM HOUSTON YOU DONE QUIT PREACHING AND GONE TO MEDDLING HOUSTON WAS A BRAVE SOLDIER BUT MORE IMPORTANTLY HE WAS A FINE POLITICIAN HE OPPOSED THE EXTENSION OF SLAVERY TO THE NEW TERRITORIES WHEN A US SENATOR HE MADE TREATIES WITH THE INDIANS AND KEPT HIS WORD AND HE KNOWINGLY COMMITTED POLITICAL SUICIDE WHEN HE TOLD TEXANS NOT TO JOIN THE CONFEDERACY SINCE THE 1830S TEXANS HAVE BEEN REVILED BY THE EASTERN ESTABLISHMENT IN MUCH THE SAME WAY THE YOUNG UNITED STATES WAS REVILED BY THE ENGLISH OLD MONEY AND RECIPIENTS OF PRIMOGENITURE NEVER SAW PIONEERS AS ANYTHING BUT RIFFRAFF AS A SEVENTHGENERATION TEXAN THIS HAS NEVER BOTHERED ME THE PEOPLE WHO DID NOT GO WEST WHETHER TO TEXAS OR BEYOND DIDN'T BECAUSE THEY EITHER HAD PERSONAL FORTUNES OR SIMPLY DIDN'T HAVE THE HUEVOS TO FACE INDIANS AND HARDSHIP HOUSTON WASN'T A SAINT AND HE CERTAINLY DID NOT DEFEAT SANTA ANNA BY BEING LUCKY HISTORY REVISIONISTS ARE ALL THE SAME AND THEY DRAW ABSURD AND UNTRUE CONCLUSIONS TO SELL BOOKS YOUR ARTICLE BEARS THIS OUT 9306020114 930602 INTERNATIONAL HALLIBURTON UNIT MAY LOSE CONTRACT WITH TAIWAN FIRM BY JEREMY MARK STAFF REPORTER OF THE WALL STREET JOURNAL TAIPEI TAIWAN CHINESE PETROLEUM CORP FACED WITH A DAMAGING CONTRACT SCANDAL SAID IT WOULD CANCEL A 173 MILLION CONTRACT AWARDED TO BROWN & ROOT INTERNATIONAL INC FOR A WASTEWATER TREATMENT FACILITY AT ONE OF ITS REFINERIES THE CONTRACT WITH BROWN & ROOT A HOUSTONBASED ENGINEERING AND CONSTRUCTION SUBSIDIARY OF DALLASBASED HALLIBURTON CO HAS BEEN AT THE CENTER OF A CRIMINAL INVESTIGATION INTO THE WAY IT WAS AWARDED AND SUBCONTRACTED TO LOCAL COMPANIES WE DECIDED LAST WEEK TO CANCEL THE CONTRACT COMPLETELY REUTERS NEWS AGENCY QUOTED CHINESE PETROLEUM'S PRESIDENT CHEN KUOYUNG AS SAYING IN A NEWS INTERVIEW WITH TAIWAN TELEVISION CORP ANY DECISION BY CPC TO CANCEL THE CONTRACT NEEDS THE APPROVAL OF TAIWAN'S MINISTRY OF ECONOMIC AFFAIRS WHICH SUPERVISES ALL STATEOWNED COMPANIES TAIWAN'S BUREAU OF INVESTIGATION RECOMMENDED LAST WEEK THAT PROSECUTORS BRING CHARGES AGAINST 10 OFFICIALS OF VARIOUS COMPANIES THE OFFICIALS INCLUDING A FOREIGN EMPLOYEE OF BROWN & ROOT HAVE BEEN QUESTIONED AND THREE FROM OTHER COMPANIES HAVE BEEN JAILED THE BROWN & ROOT OFFICIAL WAS ORDERED TO REMAIN IN THE COUNTRY THE BUREAU OF INVESTIGATION SAID BROWN & ROOT IS SUSPECTED OF ILLEGALLY SUBCONTRACTING THE PROJECT TO LOCAL COMPANIES FORMAL INDICTMENTS HAVEN'T BEEN HANDED UP BUT UNDER TAIWAN'S LEGAL SYSTEM SUSPECTS MAY BE HELD BEFORE CHARGES ARE FILED IN HOUSTON A SPOKESWOMAN FOR BROWN & ROOT SAID THE COMPANY HASN'T BEEN INFORMED OF ANY PLAN TO CANCEL ITS CONTRACT SHE REITERATED THAT BROWN & ROOT HASN'T BEEN CHARGED WITH ANY WRONGDOING IS COOPERATING WITH THE INVESTIGATION AND HAS DONE NOTHING WRONG THE SPOKESWOMAN ADDED THAT BROWN & ROOT BELIEVES ITS EMPLOYEE IS A WITNESS NOT A SUBJECT OF THE INVESTIGATION THE BROWN & ROOT SPOKESWOMAN DENIED THAT THE COMPANY HAD ANY PARTICIPATION IN OR KNOWLEDGE OF BRIBING OFFICIALS TO OBTAIN A CONTRACT SHE SAID THAT WHILE THE COMPANY HAS SUBCONTRACTED ALL OF THE PHYSICAL WORK ON THE WASTEWATER TREATMENT FACILITY IT HAS RETAINED RESPONSIBILITY FOR THE OVERALL PERFORMANCE OF THE PROJECT WHICH IS MORE THAN 70 COMPLETE BROWN & ROOT MANAGEMENT AND ENGINEERS HAVE BEEN WORKING ON THE PROJECT SINCE ITS BEGINNING SHE SAID 9306020113 930602 WHO'S NEWS PRESSTEK INC NAMES JAMES L BAST AS CEO HUDSON NH PRESSTEK INC SAID IT NAMED JAMES L BAST FORMERLY PRESIDENT AND CHIEF EXECUTIVE OFFICER OF AB DICK CO AS PRESIDENT AND CHIEF EXECUTIVE MR BAST 57 YEARS OLD SUCCEEDS LAWRENCE HOWARD 37 WHO REMAINS VICE CHAIRMAN PRESSTEK WHICH MAKES IMAGING TECHNOLOGY FOR THE GRAPHICS ARTS AND PRINTING INDUSTRIES SAID THIS PLANNED TRANSITION OF SENIOR MANAGEMENT RESULTS FROM PRESSTEK'S RECOGNITION OF THE NEED FOR AN EXECUTIVE WITH MR BAST'S EXTENSIVE LEADERSHIP EXPERIENCE AS THE COMPANY ADVANCES TOWARD SIGNIFICANT GROWTH OPPORTUNITIES 9306020112 930602 INTERNATIONAL TV ZAPS MIYAZAWA QUOTE SCORNING US TRADE SAVVY SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPANESE PRIME MINISTER KIICHI MIYAZAWA TOLD A TELEVISION INTERVIEWER THAT TOP US OFFICIALS ARE PROMOTING MISGUIDED TRADE POLICIES BECAUSE OF THEIR INEXPERIENCE THEN RETRACTED THE REMARK MINUTES LATER THE UNGUARDED COMMENT NOT MR MIYAZAWA'S FIRST IN DISCUSSING THE USCAME MONDAY NIGHT DURING THE TAPING OF AN INTERVIEW PROGRAM FOR TV ASAHI REFERRING TO US TRADE OFFICIALS SUCH AS TRADE REPRESENTATIVE MICKEY KANTOR MR MIYAZAWA SAID THEY'VE JUST COME TO THE GOVERNMENT SO THEY PROBABLY DON'T UNDERSTAND THINGS VERY WELL AFTER A COMMERCIAL BREAK HOWEVER MR MIYAZAWA DECLARED HE WAS WITHDRAWING THE REMARK BECAUSE WE DON'T WANT ANYTHING THAT MIGHT BE RUDE WHEN THE INTERVIEW WAS BROADCAST MONDAY AROUND MIDNIGHT IN JAPAN BOTH THE ORIGINAL REMARK AND THE RETRACTION WERE DELETED A TV ASAHI STAFF MEMBER SAID MR MIYAZAWA HAS CRITICIZED THE US FOR LEANING TOWARD MANAGED TRADE SUCH AS SETTING SPECIFIC TARGETS FOR JAPAN'S PURCHASE OF AMERICAN GOODSTO REDUCE THE 49 BILLION USJAPAN TRADE IMBALANCE WE CAN'T DO THAT KIND OF THING AND I BELIEVE IT IS A MISTAKE THE PRIME MINISTER SAID ON THE TV PROGRAM 9306020111 930602 TECHNOLOGY & HEALTH THE WHITE HOUSE LOGS ON TO THE COMPUTER CROWD WASHINGTON THE CLINTON WHITE HOUSE ANNOUNCED THAT IT CAN NOW COMMUNICATE INSTANTANEOUSLY WITH HUNDREDS OF THOUSANDS OF COMPUTERUSING AMERICANS THE WHITE HOUSE WILL BE CONNECTED TO THE INTERNET AS WELL AS SEVERAL ONLINE COMMERCIAL VENDORS THUS MAKING US MORE ACCESSIBLE AND MORE IN TOUCH WITH PEOPLE ACROSS THE COUNTRY PRESIDENT CLINTON AND VICE PRESIDENT AL GORE SAID IN A PREPARED STATEMENT UP UNTIL YESTERDAY THE WHITE HOUSE COULD RECEIVE ELECTRONIC MAIL MESSAGES BUT COULD ONLY REPLY BY ORDINARY MAIL HANDLED BY WHITE HOUSE VOLUNTEERS THE WHITE HOUSE SAID THIS EXPERIMENT IS THE FIRSTEVER EMAIL PROJECT DONE ON SUCH A LARGE SCALE INITIALLY THE STATEMENT SAID EMAIL MESSAGES TO THE WHITE HOUSE WILL BE READ AND RECEIPT ACKNOWLEDGED BY EMAIL IMMEDIATELY THE RESULTS WILL BE CATALOGED BY SUBJECT AND POINT OF VIEW HOWEVER THE WHITE HOUSE IS NOT YET CAPABLE OF SENDING BACK A TAILORED RESPONSE VIA ELECTRONIC MAIL WE ARE HOPING THIS WILL HAPPEN BY THE END OF THE YEAR CONGRESS AND SEVERAL GOVERNMENT AGENCIES ARE EXPECTED TO JOIN IN THE EMAIL PROJECT IN SUCCEEDING WEEKS 9306020110 930602 WHO'S NEWS TRUSTCO BANK TRUSTCO BANK SCHENECTADY NY THOMAS C CROWLEY 45 YEARS OLD WAS NAMED TO THE NEWLY CREATED POSITION OF SENIOR VICE PRESIDENT ADMINISTRATION FOR THIS BANK HOLDING COMPANY MR CROWLEY PREVIOUSLY WAS EXECUTIVE VICE PRESIDENT AND SENIOR CREDIT POLICY OFFICER FOR FLEET BANK OF NEW YORK A UNIT OF FLEET FINANCIAL GROUP OF PROVIDENCE RI 9306020109 930602 REVIEW & OUTLOOK EDITORIAL ASIDES REAL CAMPAIGN REFORM IT WAS NO SURPRISE THAT WHEN THE SENATE DEBATED CAMPAIGN REFORM LAST WEEK IT REJECTED THE ONE IDEA THAT WOULD REALLY INCREASE POLITICAL COMPETITION AND INFURIATE SPECIAL INTERESTS TERM LIMITS STILL THERE'S REASON FOR OPTIMISM WHEN THE SENATE FIRST VOTED ON TERM LIMITS IN 1948 THE IDEA WON ONLY ONE VOTE IN 1991 IT LOST 68 TO 30 LAST WEEK 57 SENATORS OPPOSED TERM LIMITS BUT 39 VOTED IN FAVOR EIGHT SENATORS INCLUDING TWO DEMOCRATS SWITCHED SIDES TO BACK THEM DANFORTH DECONCINI DURENBERGER EXON HATFIELD KASSEBAUM PACKWOOD AND SPECTER SLOWLY BUT STEADILY TERM LIMITS ARE WINNING CONVERTS EVEN AMONG THE INCUMBENTS 9306020108 930602 TECHNOLOGY CRAY COMPUTER CORP TO GET MORE FUNDS THROUGH EQUITY SALE COLORADO SPRINGS COLO CRAY COMPUTER CORP ONLY MONTHS AWAY FROM RUNNING OUT OF CASH SAID A GROUP OF OVERSEAS INVESTORS AND COMPANY FOUNDER SEYMOUR CRAY WILL PUMP AS MUCH AS 329 MILLION INTO THE SUPERCOMPUTER MAKER IN A PRIVATE EQUITY DEAL THE COMPANY WHICH HAS BEEN HOBBLED BY REPEATED DELAYS IN THE DEVELOPMENT OF ITS FIRST SUPERCOMPUTER SAID THE AGREEMENTS WHICH ARE EXPECTED TO CLOSE JUNE 11 WILL KEEP THE CONCERN AFLOAT AT LEAST THROUGH JUNE 1994 WILLIAM SKOLOUT CRAY COMPUTER'S CHIEF FINANCIAL OFFICER SAID THE COMPANY WILL USE THE MONEY TO MARKET ITS CRAY3 SUPERCOMPUTER AS WELL AS TO CONTINUE DEVELOPMENT ON ITS NEXTGENERATION CRAY4 THOUGH ANALYSTS ACKNOWLEDGE THAT THE INVESTMENT GIVES LIFE TO A COMPANY THAT WAS SLATED TO RUN OUT OF MONEY IN SEPTEMBER THEY SAY CRAY COMPUTER IS STILL FACING A WEAK SUPERCOMPUTER MARKET SQUEEZED BY WORKSTATIONS AND NETWORKED PERSONAL COMPUTERS IT'S GOING TO BE A TOUGH GO FOR THEM SAID GARY SMABY A MINNEAPOLIS SUPERCOMPUTER CONSULTANT IT'S TOUGH FOR ANYBODY TO TRY TO CAPTURE SHARE IN A DECLINING MARKET UNDER TERMS OF THE EQUITY DEAL THE GROUP OF INTERNATIONAL INVESTORS WHOM THE COMPANY WOULDN'T IDENTIFY HAS AGREED TO BUY BETWEEN 98 MILLION AND 124 MILLION SHARES OF PREVIOUSLY UNISSUED STOCK AT 225 A SHARE WHILE MR CRAY WILL PAY 275 A SHARE FOR 18 MILLION OF THE NEW SHARES CRAY COMPUTER WHICH CURRENTLY HAS ABOUT 25 MILLION SHARES OF COMMON STOCK OUTSTANDING CLOSED AT 3125 UP 375 CENTS IN NATIONAL OVERTHECOUNTER TRADING 9306020107 930602 WHO'S NEWS TRICARE NAMES NEW CHIEF IRVINE CALIF TRICARE INC SAID LARRY G GERDES WAS NAMED PRESIDENT AND CHIEF EXECUTIVE OFFICER SUCCEEDING STEPHEN F BULLOCK WHO WILL BECOME CHIEF OPERATING OFFICER THE COMPANY WHICH PROVIDES MEDICAL CARE TO WORKERS INJURED ON THE JOB ALSO SAID IN A STATEMENT THAT IT IS MOVING ITS HEADQUARTERS TO ATLANTA MR GERDES HAS BEEN GENERAL PARTNER OF ATLANTABASED GERDES HUFF INVESTMENTS SINCE 1991 TRICARE MADE BOTH ANNOUNCEMENTS LATE YESTERDAY AND COULDN'T BE REACHED FOR COMMENT RECENTLY THE COMPANY ANNOUNCED IT WAS SLASHING ITS WORK FORCE BY 117 OR 43 9306020106 930602 FOREIGN EXCHANGE DOLLAR GETS SOME SUPPORT AGAINST YEN FROM TALK OF RENEWED US INTERVENTION BY RICHARD SCHUMACHER SPECIAL TO THE WALL STREET JOURNAL NEW YORK THE DOLLAR ENDED MIXED IN QUIET POSTHOLIDAY TRADING SUPPORTED AGAINST THE YEN BY UNCONFIRMED RUMORS OF RENEWED US INTERVENTION TO AID THE DOLLAR AGAINST ITS JAPANESE COUNTERPART THE POUND HOWEVER SLIPPED AGAINST A RANGE OF CURRENCIES ON CONTINUED ANXIETY ABOUT THE POSSIBILITY OF BRITAIN'S NEW CHANCELLOR OF THE EXCHEQUER KENNETH CLARKE REDUCING UK INTEREST RATES LATE IN NEW YORK THE DOLLAR WAS QUOTED AT 15865 MARKS DOWN FROM 15915 MARKS LATE MONDAY IN TOKYO AND 15875 MARKS FRIDAY IN NEW YORK THE DOLLAR ALSO WAS CHANGING HANDS AT 10705 YEN UP FROM 10695 YEN FRIDAY IN NEW YORK BUT DOWN FROM 10738 MONDAY IN TOKYO STERLING WAS TRADING AT 15520 DOWN FROM 15620 FRIDAY IN NEW YORK AND 15574 MONDAY IN TOKYO ABOUT MIDDAY WEDNESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10695 YEN AND AT 15845 MARKS THE US AND MOST OF EUROPE WERE CLOSED MONDAY FOR HOLIDAYS AND TRADERS SAID YESTERDAY'S GENERALLY QUIET TONE STEMMED FROM MARKET LETHARGY AFTER THE LONG WEEKEND AND AN ABSENCE OF SIGNIFICANT FRESH NEWS THE DOLLAR EDGED UP AGAINST THE YEN MONDAY AS WIDESPREAD THOUGH UNCONFIRMED RUMORS OF INTERVENTION FROM THE FEDERAL RESERVE BANK OF NEW YORK TO SUPPORT THE DOLLAR AROUND 10700 YEN HELPED KEEP IT FROM FALLING DEALERS SAID THE REPORTS WERE HOLDING THE DOLLAR UP SAID WILLIAM BERTHA CHIEF DEALER AT MELLON BANK NA IN PITTSBURGH IN ASIAN TRADING THE BANK OF JAPAN ALSO WAS WIDELY RUMORED TO HAVE BOUGHT DOLLARS FOR YEN AROUND 10700 YEN BOTH THE FED AND BANK OF JAPAN WERE SEEN INTERVENING THURSDAY AND FRIDAY OF LAST WEEK PROFIT TAKING AFTER THE DOLLAR'S TUMBLE IN THE LAST WEEK ALSO GAVE THE DOLLAR SOME SUPPORT MR BERTHA SAID IT'S COME DOWN A LONG WAY PEOPLE WANT TO LOCK IN SOME OF THEIR GAINS A REPORT ON THE US MANUFACTURING SECTOR WAS GENERALLY IN LINE WITH MARKET EXPECTATIONS AND HAD LITTLE IMPACT ON TRADING MARKET PARTICIPANTS SAID THE US NATIONAL ASSOCIATION OF PURCHASING MANAGERS' INDEX OF MANUFACTURING ACTIVITY ROSE TO 511 IN MAY FROM 497 IN APRIL A SURVEY OF ECONOMISTS HAD FORECAST THE INDEX TO BE 532 IN MAY MEANWHILE THE POUND FELL AGAINST MOST MAJOR CURRENCIES ON RENEWED CONCERNS ABOUT WHAT KENNETH CLARKE MIGHT DO TO BRITISH INTEREST RATES TRADERS SAID THE FEELING IS THAT THE NEW EXCHEQUER MAY EASE RATES SAID JAY TUCKER THE DIRECTOR OF FOREIGN EXCHANGE AT FIRST BOSTON CORP LOWER INTEREST RATES TEND TO DIMINISH THE APPEAL OF A CURRENCY TO INVESTORS THE EXTENT OF STERLING'S FALL WAS EXAGGERATED BECAUSE MUCH OF IT OCCURRED IN THE LATTER HALF OF NORTH AMERICAN TRADING WHEN THE MARKET IS THIN MR TUCKER SAID LOOKING AHEAD TRADERS SAID THEY EXPECT THE MARKET TO GIVE GROWING ATTENTION TO FRIDAY'S RELEASE OF US MAY NONFARM PAYROLL DATA THE ONLY IMPORTANT NUMBER THIS WEEK IS UNEMPLOYMENT MR BERTHA SAID THE WIDESPREAD INCLINATION NOT TO MOVE STRONGLY BEFORE THE REPORT PROBABLY WILL KEEP THE DOLLAR STABLE AGAINST MOST MAJOR CURRENCIES GOING INTO FRIDAY HE SAID 9306020105 930602 WHO'S NEWS DIED DONN B TATUM 80 FORMER CHAIRMAN AND PRESIDENT OF WALT DISNEY CO MONDAY IN PACIFIC PALISADES CALIF OF CANCER 9306020104 930602 BUSINESS BRIEF SUPERMAC TECHNOLOGY INC LICENSE FOR CINEPAK GRANTED TO SEGA ENTERPRISES UNIT SUPERMAC TECHNOLOGY INC SUNNYVALE CALIF SAID IT LICENSED TO VIDEOGAME MAKER SEGA OF AMERICA INC A TECHNIQUE FOR COMPRESSING VIDEO THE TECHNIQUE CALLED CINEPAK ENABLES EACH VIDEO FRAME TO OCCUPY LESS ELECTRONIC STORAGE SPACE THE DEAL WHOSE TERMS WEREN'T GIVEN IS A BOOST FOR SUPERMAC BECAUSE IT BROADENS THE POTENTIAL APPEAL OF CINEPAK TO INCLUDE THE LUCRATIVE VIDEOGAME MARKET SUPERMAC MAINLY SELLS PRODUCTS THAT ENHANCE THE GRAPHICS OF PERSONAL COMPUTERS SEGA IS A UNIT OF SEGA ENTERPRISES LTD 9306020103 930602 RAWSTEEL PRODUCTION FELL 02 LAST WEEK WASHINGTON RAWSTEEL PRODUCTION BY THE NATION'S MILLS DECREASED 02 LAST WEEK TO 1902000 TONS FROM 1905000 TONS THE PREVIOUS WEEK THE AMERICAN IRON AND STEEL INSTITUTE SAID LAST WEEK'S OUTPUT ROSE 69 FROM THE 1780000 TONS PRODUCED A YEAR EARLIER THE INDUSTRY USED 899 OF ITS CAPABILITY LAST WEEK COMPARED WITH 90 THE PREVIOUS WEEK AND 826 A YEAR EARLIER THE AMERICAN IRON AND STEEL INSTITUTE REPORTED THE CAPABILITY UTILIZATION RATE IS A CALCULATION DESIGNED TO INDICATE AT WHAT PERCENT OF ITS PRODUCTION CAPABILITY THE INDUSTRY IS OPERATING IN A GIVEN WEEK 9306020102 930602 MARKETING & MEDIA ADVERTISING THOMPSON DROPS DENTIST'S CHAIR AND RETURNS SEX TO CLOSEUP ADS BY KEVIN GOLDMAN TOOTHPASTE ADVERTISING IS USUALLY AS EXCITING AS SAY BRUSHING YOUR TEETH THESE DAYS THE COMMERCIALS ARE HEAVY ON LECTURES ABOUT TARTAR CONTROL AND CAVITY FIGHTING ALONG WITH SHOTS OF HAPLESS INDIVIDUALS PLOPPED HELPLESSLY INTO THE DENTIST'S CHAIR NOT SO IN NEW ADS FOR CLOSEUP FROM CHESEBROUGHPONDS WHICH IS INTRODUCING THE 23YEAROLD BRAND'S FIRST NEW TELEVISION CAMPAIGN IN THREE YEARS IN SPOTS THAT BEGIN RUNNING TONIGHT CLOSEUP RETURNS TO THE KISSYFACE HERITAGE OF ITS ADS OF OLD THE NEW EFFORT DEPICTS A SERIES OF COMPLETE STRANGERS WHO BUMP INTO EACH OTHER IN PUBLIC PLACES AND SECONDS LATER START MAKING OUT SO MUCH FOR THE AIDS ERA AND SAFE SEX THE ADS FROM WPP GROUP'S J WALTER THOMPSON AIM FOR A YOUNGER AUDIENCE IN AN ATTEMPT TO STAND OUT AMONG THE BARRAGE OF MORE TECHNICAL APPEALS PLIED BY FAR BIGGER SPENDERS IN THE CATEGORY THE CLOSEUP ADS IN HOPES OF SNARING YOUNG CONSUMERS WHO HAVE THEIR MINDS MORE ON SOCIAL ADVANCEMENT THAN CAVITY PREVENTION WILL RUN ON YOUNGERSKEWING PROGRAMS INCLUDING A SLEW OF SHOWS ON NEWS CORP'S FOX NETWORK INCLUDING BEVERLY HILLS 90210 MELROSE PLACE AND PARKER LEWIS CHESEBROUGHPONDS A UNIT OF UNILEVER NV WILL INCREASE ITS AD SPENDING FOR CLOSEUP OVER LAST YEAR'S MODEST 5 MILLION ACCORDING TO OFFICIALS AT J WALTER THOMPSON BUT THE EFFORT STILL MAY FALL WELL SHORT OF THE BUDGET FOR THE NO 1 BRAND IN THE CATEGORY PROCTER & GAMBLE'S CREST WHOSE AD BUDGET IS MORE THAN 35 MILLION FOR VARIOUS ENTRIES ACCORDING TO LEADING NATIONAL ADVERTISERS CLOSEUP IS GETTING SQUEEZED IN THE INCREASINGLY CROWDED CATEGORY WHERE THERE USED TO BE ONLY THE BASIC TOOTHPASTE THE MARKETPLACE IS NOW FILLED WITH BAKING POWDERBASED CONCOCTIONS AMONG OTHER TEETH BRIGHTENERS CLOSEUP'S SHARE IS AT 5 OF THE MARKET WHILE THE LEADER CREST TARTAR CONTROL COMMANDS 179 OF THE BUSINESS CLOSEUP DIDN'T EXACTLY SPARKLE IN ITS LAST CHECKUP ITS SALES FELL 11 TO 317 MILLION IN THE SIX MONTHS ENDED APRIL 17 WHILE THE ENTIRE CATEGORY ROSE ALMOST 5 AND THE CREST ENTRY'S SALES WERE UP 13 ACCORDING TO AC NIELSEN CO TO GET CLOSEUP MOVING AGAIN J WALTER THOMPSON ENGAGES THE VIEWER IN A FANTASY FILMED AT THE HOBOKEN TRAIN STATION IN NEW JERSEY IN WHICH TOTAL STRANGERS ACT AS IF THEY HAVE SUDDENLY BEEN TAKEN OVER BY LOVE POTION NO 9 RATHER THAN A MERE TOOTHPASTE IN THE HALFMINUTE SPOT A WOMAN LOOKING FOR A TRAIN JOSTLES A GUY SPORTING A BACKPACK A MAN IN A PHONE BOOTH BECOMES ENTHRALLED BY A FEMALE A FEW BOOTHS AWAY A WOMAN APPLYING MAKEUP SUDDENLY CATCHES THE EYE OF AN ADMIRER SITTING NEARBY A TICKET CLERK BECOMES THE OBJECT OF A YOUNG BEAUTY'S AFFECTION THESE FOLKS HAVEN'T EVEN KNOWN ONE ANOTHER FOR A FULL 30 SECONDS BUT A WALTZ BEGINS PLAYING AND SMOOCHING BREAKS OUT ALL OVER EVEN COUPLES IN THE BACKGROUND BEGIN KISSING PASSIONATELY THE PREMATURE KISSING BEFORE EVEN SO MUCH AS A FIRST DATE AFTER ALL WAS A SUBJECT OF ENDLESS DISCUSSION SAYS RICHARD DILALLO THOMPSON'S CREATIVE DIRECTOR EXECUTIVES WORRIED ABOUT HOW THE IDEA WOULD PLAY IN THESE TOUCHY TIMES BUT AFTER THE VERBAL BACK AND FORTH AND RESEARCH INCLUDING FOCUS GROUPS THAT SHOWED NO ONE MINDED CLOSEUP WENT AHEAD CLEARLY SAYS MR DILALLO THE SPOT IS A FANTASY AND FAIRY TALE YOU DON'T BRING THE SAME STARK REAL LIFE SITUATIONS INTO IT THE COMMERCIAL HAS A SMILE TO IT INSTEAD OF MIMICKING CREST'S NONONSENSE TACTICS CLOSEUP WANTS TO EXPLOIT ITS HERITAGE HE ADDS FOR CLOSEUP THAT MEANT BEING A SOCIALEND BENEFIT PRODUCT NO FANCY HARDTOFOLLOW DATA ABOUT CAVITY PREVENTION HERE NOPE SIMPLY WHILE CLOSEUP HAS ALL THE INGREDIENTS CONTAINED IN MANY TOOTHPASTES TO FIGHT TARTAR PLAQUE AND CAVITIES WE CAN ALSO PROMISE A SOCIALEND BENEFIT THAT SIMPLY MEANS A BRIGHTER SMILE AND MAYBE MORE DATES WE'VE CHOSEN NOT TO FOCUS ON THE PROFESSIONAL SIDE OF DENTAL CARE SAYS ESTHER LEE SENIOR VICE PRESIDENT AT THOMPSON WE FOCUS ON EMOTIONAL ADVERTISING CLUB MED WHICH JUST TWO YEARS AGO CAPPED A HIGHPROFILE SEARCH FOR A US AGENCY BY HIRING TBWA ADVERTISING IS OUT TALKING TO OTHER SHOPS AGAIN AN OFFICIAL WITH THE RESORT OPERATOR SAID AMONG THE AGENCIES CLUB MED SALES IS CONSIDERING FOR ITS ESTIMATED 8 MILLION ACCOUNT ARE MESSNER VETERE BERGER MCNAMEE SCHMETTERER A UNIT OF FRENCH HOLDING COMPANY EURO RSCG AND THE FRENCH AGENCY PUBLICIS SAID ANTHONY SALERNO CLUB MED DIRECTOR OF ADVERTISING AND SALES PROMOTION IT ISN'T A FULLFLEDGED AGENCY SEARCH MR SALERNO SAID CONFIRMING A REPORT IN ADWEEK WE JUST WANT TO HEAR WHO HAS AN ANGLE WE HAVEN'T HEARD OF BEFORE PUBLICIS WOULD SEEM TO HAVE THE EDGE HAVING RECENTLY WON THE ESTIMATED 40 MILLION CLUB MEDITERANEE ACCOUNT IN EUROPE BUT MR SALERNO SAID THE US BUSINESS COULD VERY WELL STAY PUT AT TBWA FOR HIS PART TBWA PRESIDENT DICK COSTELLO SAID UNTIL SUCH TIME AS CLUB MED FINDS SOMEBODY THEY LIKE BETTER THAN US WE CONTINUE TO BE THEIR AGENCY CLUB MEDITERANEE OWNS MOST OF CLUB MED DAVID F KENNEDY CHAIRMAN OF WIEDEN & KENNEDY OF PORTLAND ORE AND ONE OF THE AGENCY'S CREATIVE DIRECTORS IS RETIRING THE AGENCY SAID MR KENNEDY 54 YEARS OLD FOUNDED THE AGENCY 11 YEARS AGO WITH DAN G WIEDEN THEIR SHOP HAS GROWN TO ABOUT 220 MILLION IN BILLINGS ACCORDING TO ADVERTISING AGE WIEDEN & KENNEDY'S CLIENTS INCLUDE NIKE INC AND SUBARU OF AMERICA A UNIT OF FUJI HEAVY INDUSTRIES MR WIEDEN IS LEAVING TO PURSUE ART STUDIES THE AGENCY SAID WHILE CONTINUING TO WORK AS A CONSULTANT ON A PRO BONO ACCOUNT THE AMERICAN INDIAN COLLEGE FUND THE AGENCY SAID IT DOESN'T INTEND TO APPOINT A SUCCESSOR MESSRS WIEDEN AND KENNEDY DIDN'T RETURN CALLS SEEKING COMMENT MR KENNEDY'S DEPARTURE ISN'T EXPECTED TO ENDANGER ACCOUNTS AT THE AGENCY MARK DUNN NATIONAL ADERTISING MANAGER AT SUBARU SAID MR KENNEDY'S DEPARTURE WOULDN'T POSE ANY PROBLEMS SINCE HE HADN'T BEEN ACTIVE ON THE ACCOUNT SINCE THE AGENCY WON IT IN A PITCH TWO YEARS AGO KIA KIA MOTORS AMERICA OF IRVINE CALIF HIRED DICK MACEDO PRESIDENT OF THE LOS ANGELES OFFICE OF WELLS RICH GREENE BDDP SINCE 1987 AS DIRECTOR OF MARKETING IN THE NEW POST MR MACEDO 52 YEARS OLD IS OVERSEEING KIA'S SEARCH FOR AN AD AGENCY FOR ITS ESTIMATED 30 MILLION ACCOUNT MR MACEDO SAID THE LIST OF 12 CONTENDERS WOULD BE NARROWED THIS WEEK WELLS RICH WHICH WORKS FOR FORD MOTOR IS NOT ONE OF THE CONTENDERS KIA MOTORS AMERICA IS A UNIT OF KIA MOTOR CORP OF SEOUL SOUTH KOREA ACCOUNT CANANDAIGUA WINE CO TAPPED TRONE ADVERTISING OF GREENSBORO NC TO CREATE NATIONAL TELEVISION ADVERTISING FOR ITS COOK'S CHAMPAGNE THE AGENCY IS CREATING NEW ADS THAT ARE SET TO RUN DURING THE WINTER HOLIDAYS 9306020101 930602 A SECOND LOOK AT BOARDROOM REFORM BY JOHN R BOLTON IN RECENT MONTHS THE PRESS HAS DEVOTED CONSIDERABLE ATTENTION TO RELATIONSHIP INVESTING ALTHOUGH THIS HOT VERSION OF BOARDROOM REFORM HAS RECEIVED NEARLY UNIFORMLY FAVORABLE REVIEWS THERE IS A REAL QUESTION WHETHER THE ADULATION IS JUSTIFIED RELATIONSHIP INVESTING OCCURS WHEN AN INVESTOR ACQUIRES A RELATIVELY LARGE EQUITY POSITION IN A CORPORATION HOLDS IT FOR THE LONG TERM AND ATTEMPTS TO INFLUENCE THE BEHAVIOR OF THE COMPANY'S BOARD AND MANAGEMENT THE RECENT SHAREHOLDER ACTIVISM AT GENERAL MOTORS AND IBM IS AN EXAMPLE OF ITS EFFECTS RELATIONSHIP INVESTING IS NOT NEW AT VARIOUS POINTS IN THIS CENTURY PEOPLE HAVE TRIED IT IN ONE FORM OR ANOTHER BUT IT HAS BEEN TYPICALLY UNDONE BY AMERICA'S POPULIST FEAR OF CONCENTRATED FINANCIAL POWER TODAY'S RESURGENCE IS A RESULT OF THE ENORMOUS GROWTH OF THE FINANCIAL ASSETS OF INSTITUTIONAL INVESTORS PARTICULARLY PENSION FUNDS INSTITUTIONAL INVESTORS ARGUE THAT THEIR EQUITY HOLDINGS ARE SO LARGE THAT THE WALL STREET RULE SELL IF YOU'RE DISSATISFIED WITH CORPORATE PERFORMANCE NO LONGER APPLIES TO THEM THE NUMBERS APPEAR TO BUTTRESS THIS ARGUMENT TODAY MORE THAN 50 OF STOCK IS HELD BY SUCH GROUPS THEY POINT TO INDEXATION IN PARTICULAR AS A REASON FOR THEIR CORPORATE ACTIVISM INDEXATION IS A PASSIVE INVESTMENT STRATEGY IT IS BASED ON THE IDEA THAT OVER TIME NO ONE CAN BEAT THE PERFORMANCE OF THE MARKET AS A WHOLE A BELIEF FOR WHICH THERE IS SUBSTANTIAL EMPIRICAL EVIDENCE INSTITUTIONAL INVESTORS OFTEN FEEL THEY ARE LOCKED INTO THEIR HOLDINGS SINCE SELLING POOR PERFORMERS WOULD DISTORT THE INDEX AND INCREASE THEIR TRANSACTION COSTS THUS THEY ARGUE IT IS BETTER TO WORK WITH CORPORATE MANAGEMENT TO IMPROVE A FIRM'S PERFORMANCE AND INCREASE THEIR HOLDINGS' VALUE TOWARD THIS END INSTITUTIONAL INVESTORS HAVE WITHHELD SUPPORT FROM NOMINEES TO BOARDS OF DIRECTORS OPPOSED VARIOUS ANTITAKEOVER DEVICES AND ENGAGED IN EXTENSIVE CONSULTATIONS WITH BOARDS AND MANAGEMENT IN POORLY PERFORMING COMPANIES WHAT ARE THE RESULTS SO FAR ASSESSMENTS DIFFER A STUDY PREPARED FOR THE CALIFORNIA PUBLIC EMPLOYEES RETIREMENT SYSTEM BY THE GORDON GROUP SUMMARIZED BY LILLI GORDON ON THIS PAGE FEB 4 CONCLUDED THAT GENERALLY SPEAKING SHAREHOLDER RETURNS FROM RELATIONSHIP INVESTMENTS WOULD BE ABOVE THE STANDARD AND POOR'S 500 BUT A RECENT STUDY BY COVENANT INVESTMENT MANAGEMENT INC AN INVESTMENT COUNSELING FIRM FOR PRIVATE INVESTORS SUGGESTED SOMEWHAT DIFFERENT RESULTS THE COVENANT STUDY TESTED ONE OF THE CRITICAL TENETS OF THE INSTITUTIONALINVESTOR MOVEMENT NAMELY THAT THE MORE OUTSIDE DIRECTORS THE BETTER ANALYZING THE RESULTS FOR AMERICA'S 1000 LARGEST CORPORATIONS IN 198892 COVENANT CONCLUDED THAT RETURNS WERE HIGHER FOR CORPORATIONS WITH FEWER OUTSIDE OR INDEPENDENT DIRECTORS THIS CONCLUSION RUNS COUNTER TO CURRENT MOVES TOWARD INCREASED REGULATION ALTHOUGH THERE IS NO MAJOR LEGISLATION GOVERNING RELATIONSHIP INVESTMENT BEFORE CONGRESS AT THE MOMENT THERE ARE A NUMBER OF REGULATORY PROPOSALS AFFECTING CORPORATE BOARDS REP EDWARD MARKEY D MASS FOR EXAMPLE HAS SUGGESTED THAT CORPORATIONS BE REQUIRED TO SPLIT THE POSITIONS OF CHAIRMAN AND CHIEF EXECUTIVE OFFICER MORE TO THE POINT HE HAS PROPOSED THAT PUBLICLY TRADED CORPORATIONS BE REQUIRED TO HAVE A MAJORITY OF OUTSIDE DIRECTORS THERE ARE REASONS TO DOUBT THE WISDOM OF THIS IDEA ESPECIALLY BASED ON THE EXPERIENCE OF OTHER COUNTRIES THE ADVOCATES OF RELATIONSHIP INVESTING OFTEN CITE THE CORPORATE GOVERNANCE SYSTEMS IN JAPAN AND GERMANY AS SUCCESS STORIES IN THOSE COUNTRIES BANKS ARE NOT LIMITED IN THEIR EQUITY OWNERSHIP OF CORPORATIONS AND THEY TYPICALLY HAVE LARGE POSITIONS IN MAJOR FIRMS JAPAN ALSO HAS SUBSTANTIAL CROSSOWNERSHIP OF CORPORATIONS KNOWN AS THE KEIRETSU SYSTEM THE ECONOMIES OF GERMANY AND JAPAN SEEMED TO BOLSTER THE ARGUMENTS OF THE RELATIONSHIPINVESTMENT GURUS FOR A WHILE BUT NOW THINGS ARE DIFFERENT THE ECONOMIES OF THESE COUNTRIES ARE STAGNATING AND THE EARLY RETURNS LOOK MISLEADING AN EXAMPLE GERMANY'S DEUTSCHE BANK THE BIGGEST SHAREHOLDER IN DAIMLERBENZ GERMANY'S LARGEST INDUSTRIAL GROUP HAS TRADITIONALLY CHAIRED DAIMLER'S SUPERVISORY BOARD THIS BOARD HAS NO ANALOGUE IN AMERICAN CORPORATE GOVERNANCE BUT ITS BASIC FUNCTION IS TO LOOK OVER THE SHOULDER OF THE CORPORATION'S BOARD OF DIRECTORS AND TO SELECT THE CEO SOME YEARS BACK DEUTSCHE BANK BECAME CONVINCED THAT DAIMLER SHOULD DIVERSIFY INTO FIELDS SUCH AS ELECTRONICS AND AVIATION ACCORDINGLY DAIMLER MADE SEVERAL ACQUISITIONS IN THOSE FIELDS WITH DISASTROUS RESULTS JUST LAST MONTH DAIMLER ANNOUNCED FIRSTQUARTER EARNINGS THAT THE FIRM ITSELF CHARACTERIZED AS EXCEPTIONALLY UNSATISFACTORY THIS FOLLOWED 1992'S 25 DROP IN PROFITS AEG THE ELECTRONICS ACQUISITION SAW SUBSTANTIAL OPERATING LOSSES IN 1992 AND ITS SALES IN THE FIRST QUARTER OF THIS YEAR DROPPED 7 AT DEUTSCHE AEROSPACE ITS AVIATION COUNTERPART SALES FOR THE SAME PERIOD WERE DOWN 10 THIS IS HARDLY CHEERING NEWS FOR WOULDBE RELATIONSHIP INVESTORS THE PROBLEM MAY BE SIMPLE EXPERTISE TWENTYFIVE YEARS AGO RALPH K WINTER THEN A PROFESSOR NOW A JUDGE ON THE SECOND CIRCUIT WROTE THAT MANAGEMENT'S KNOWLEDGE AND EXPERIENCE IN THE CORPORATION'S AFFAIRS MUST ALWAYS BE SUPERIOR TO THOSE WHO PLAY A PARTTIME ROLE HE WAS REFERRING TO OUTSIDE DIRECTORS BUT THE SAME POINT APPLIES TO INSTITUTIONAL INVESTORS GATHERING EVEN A FRACTION OF THE KNOWLEDGE AND EXPERIENCE NEEDED TO MAKE CORPORATE DECISIONS IS TIMECONSUMING AND COSTLY AND CORPORATE LIFE IN A COMPETITIVE GLOBAL ECONOMY IS EXTREMELY FASTPACED TIME WORKS AGAINST THE OUTSIDE INVESTOR AND MAKES COMPETENCE HARD TO ACQUIRE IN THE CASE OF INVESTOR GROUPS LIKE WARREN BUFFETT'S BERKSHIRE HATHAWAY THE EQUITY POSITIONS ARE FEW AND THE COSTS OF GETTING INFORMATION ARE LESS BURDENSOME EVEN SO THERE IS STILL CONSIDERABLE UNCERTAINTY ABOUT LONGTERM RESULTS FOR INSTITUTIONAL INVESTORS THE SITUATION IS EVEN LESS CLEAR MS GORDON PREDICTED THAT INVESTORS WOULD BECOME EXPERT IN THE WORKINGS OF THEIR PORTFOLIO COMPANIES AND PROVIDE FEEDBACK ABOUT CORPORATE POLICY SINCE THE LARGER INVESTORS HOLD HUNDREDS OF STOCKS ONE WONDERS HOW MUCH EXPERTISE THEY WOULD REALLY BE ABLE TO ACQUIRE WITHOUT INCURRING SUBSTANTIAL COSTS MOREOVER IF THEY WANT TO GO BEYOND SIMPLE MONITORING AND ACTUALLY PROVIDE CREDIBLE ADVICE TO MANAGEMENTS IN WIDELY DIVERSE BUSINESSES THE COSTS WOULD BE FAR GREATER WITH COSTS SO HIGH HOW LIKELY ARE HIGHER RETURNS INSTITUTIONAL INVESTORS COULD PERHAPS LIMIT THEIR MONITORING AND ADVICE GIVING TO SELECTED LINES OF BUSINESS THUS REQUIRING A MORE LIMITED RANGE OF COMPETENCES AND LOWERING COSTS BUT THIS APPROACH CONFLICTS WITH INDEXATION AS AN INVESTMENT STRATEGY IF THE IDEA OF INDEXATION IS TO TRACK THE MARKET WHY CONCENTRATE MONITORING RESOURCES ON LINES OF BUSINESS THAT MAY OR MAY NOT BE IN SYNC WITH THE INDEX BEING USED ANOTHER STRATEGY WOULD FOCUS ON TRULY UNDERPERFORMING COMPANIES WHERE BOTTOM LINES AND SHARE PRICES SEND CLEAR SIGNALS WHEN FIRMS ARE IN TROUBLE SUCH AN APPROACH HOWEVER IS CONTRARY TO THE VISION OF THOSE WHO ADVOCATE RELATIONSHIP INVESTING MS GORDON FOR INSTANCE NOTING THE MANAGEMENT SHAKEUPS AT IBM WESTINGHOUSE AND AMERICAN EXPRESS SAID THAT RELATIONSHIP INVESTING CAN PREVENT SUCH DRAMATIC CORPORATE TRANSITIONS YET THERE IS LITTLE SUPPORT FOR THIS PROPOSITION IN FACT RELATIONSHIP INVESTING'S GOOD PRESS STEMS PRECISELY FROM THE UNARGUABLE NEED FOR MANAGEMENT CHANGE IN A SMALL NUMBER OF MAJOR CORPORATIONS OBVIOUSLY WE NEED ADDITIONAL EVIDENCE ON RELATIONSHIP INVESTING BEFORE WE CAN DRAW FIRM CONCLUSIONS IT SEEMS SAFE TO SAY THAT THIS IS A PROBLEM THE MARKET CAN HANDLE BEST IF INSTITUTIONAL INVESTORS FIND THAT THE COSTS OF MONITORING AND MODIFYING CORPORATE BEHAVIOR ARE LESS THAN THE INCREASES IN THEIR RETURNS RELATIONSHIP INVESTING WILL FLOURISH IF NOT IT WILL FADE AWAY MR BOLTON IS A SENIOR FELLOW AT THE MANHATTAN INSTITUTE'S WASHINGTON OFFICE 9306020100 930602 JUSTICES BACK EXEMPTION TO CABLE TV REQUIREMENT WASHINGTON THE SUPREME COURT UPHELD A LIMITED EXEMPTION TO THE FEDERAL REQUIREMENT THAT CABLE TELEVISION SYSTEMS OBTAIN FRANCHISES FROM THE COMMUNITIES THEY SERVE THE EXEMPTION GRANTED UNDER THE CABLE COMMUNICATIONS POLICY ACT OF 1984 APPLIES TO OPERATORS WHO RATHER THAN SERVING AN ENTIRE COMMUNITY TRANSMIT PROGRAMMING TO MULTIUNIT BUILDINGS THAT ARE COMMONLY OWNED OR CONTROLLED BENEFICIARIES INCLUDE OPERATORS SUCH AS LANDLORDS WHO SET UP A SATELLITE DISH AND RUN CABLE TO ONE OR MORE BUILDINGS WITHOUT USING PUBLIC RIGHTSOFWAY THE LAW WAS CHALLENGED BY CABLE OPERATORS WHO PROVIDE SIMILAR SERVICE TO RESIDENTS OF BUILDINGS THAT AREN'T COMMONLY OWNED OR CONTROLLED THESE OPERATORS CONTENDED THAT THE GOVERNMENT HADN'T OFFERED A RATIONAL BASIS FOR DISTINGUISHING BETWEEN BUILDINGS UNDER COMMON OWNERSHIP AND THOSE THAT ARE SEPARATELY OWNED THE RULING WHICH OVERTURNED A DECISION BY THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA WASN'T SURPRISING OVER THE PAST HALFCENTURY THE HIGH COURT HAS SELDOM APPROVED OF JUDGES INVALIDATING ECONOMIC LEGISLATION ON THE GROUNDS THAT IT ISN'T REASONABLE FCC VS BEACH COMMUNICATIONS INC 9306020098 930602 GLOBAL BUSINESS CYCLE IS CALLED STILL STAGNANT NEW YORK THE GLOBAL BUSINESS CYCLE IS STILL STAGNANT BUT A SLOW UPSWING IS EMERGING IN THE US SOUTH KOREA AND TAIWAN THE CONFERENCE BOARD SAID THE NONPROFIT INDUSTRYSUPPORTED RESEARCH ORGANIZATION REPORTED THAT THE INDEX OF LEADING INDICATORS WHICH PROJECTS FUTURE ECONOMIC CONDITIONS FOR 11 MAJOR INDUSTRIALIZED NATIONS ROSE SLIGHTLY IN RECENT MONTHS INFLATION HELD STEADY AT 28 SOME ANALYSTS ARE PROJECTING A GLOBAL RECOVERY LATER THIS YEAR IN PART BECAUSE OF A POLICY STIMULUS UNDER WAY IN JAPAN BUT EDGAR R FIEDLER VICE PRESIDENT AND ECONOMIC COUNSELOR AT THE BOARD SAID THAT OUTSIDE THE US NO SIGNS INDICATE A GLOBAL RECOVERY ANYTIME SOON IN JAPAN CONSUMER SENTIMENT AND PROFIT MARGINS ARE DOWN THE BOARD SAID MAKING RECOVERY PROSPECTS UNCERTAIN IN ADDITION THE STRONG YEN IS INHIBITING EXPORTS 9306020097 930602 MARKETING & MEDIA TIME WARNER ACCESS VENTURE NEW YORK TIME WARNER INC HAS TEAMED UP WITH VISION CABLE COMMUNICATIONS A CABLE OPERATOR IN CHARLOTTE NC TO LAUNCH A COMPETITIVE TELEPHONE ACCESS SERVICE IN THAT AREA THE 5050 VENTURE TO BE CALLED CHARLOTTE AXS WILL OWN A FIBER OPTIC NETWORK IN AND AROUND CHARLOTTE THAT WILL CONNECT BUSINESS LOCATIONS IN THE AREA WITH THEIR LONGDISTANCE COMPANIES VISION CABLE IS OWNED BY NEWHOUSE BROADCASTING CORP TIME WARNER WHICH ALSO OWNS A CABLE SYSTEM IN CHARLOTTE HAS CREATED A SIMILAR VENTURE IN COLUMBUS OHIO WITH A COMPANY CALLED METROCOMM A BUILDER AND OPERATOR OF COMPETITIVE TELEPHONE ACCESS NETWORKS 9306020096 930602 TECHNOLOGY KODAK ELF AQUITAINE FORM DRUG ALLIANCE WITH BRISTOLMYERS EASTMAN KODAK CO'S STERLING WINTHROP UNIT AND PHARMACEUTICALDEVELOPMENT PARTNER ELF SANOFI A UNIT OF FRENCH SOCIETE NATIONALE ELF AQUITAINE FORMED AN ALLIANCE WITH BRISTOLMYERS SQUIBB CO TO DEVELOP AND MARKET TWO COMPOUNDS TO TREAT CARDIOVASCULAR CONDITIONS THE ALLIANCE WILL DEVELOP AND MARKET CLOPIDOGREL AN ANTITHROMBOTIC AGENT FOR POTENTIAL PREVENTION OF HEART ATTACK STROKE AND PERIPHERAL ARTERIAL DISEASE AND ELF SANOFI'S ANGIOTENSIN II RECEPTOR ANTAGONIST FOR TREATMENT OF HYPERTENSION AND POSSIBLY OTHER CARDIOVASCULAR DISORDERS CLOPIDOGREL IS BEING DEVELOPED BY SANOFI WINTHROP THE STERLINGELF ALLIANCE FORMED IN 1991 IT IS EXPECTED TO BEAT THE OTHER COMPOUND TO MARKET REACHING CONSUMERS AROUND 1998 SAID A SPOKESMAN OF STERLING WINTHROP A UNIT OF ROCHESTER NYBASED KODAK THE COMPOUNDS ARE IN DIFFERENT PHASES OF CLINICAL TRIALS IN EUROPE AND THE US KIMBERLY E RITRIEVI A LEHMAN BROS ANALYST SAID CLOPIDOGREL HAS LARGER MARKET POTENTIAL THAN ANY OTHER DRUG SANOFI WINTHROP IS ALREADY WORKING ON EXCEPT ONE IN DEVELOPMENT FOR TREATMENT OF SOLID TUMORS BRISTOLMYERS BASED IN NEW YORK SAID IT WILL HELP DEVELOP AND MARKET THE COMPOUNDS THOUGH THE SANOFI GROUP WILL TAKE THE LEAD ON CLOPIDOGREL WE'LL ASSUME THE LEAD ON THE CLINICAL DEVELOPMENT FOR THE ANGIOTENSIN II RECEPTOR ANTAGONIST A BRISTOLMYERS SPOKESWOMAN SAID IT'S A SIGNIFICANT DEVELOPMENT FOR US BECAUSE IT IS GOING TO STRENGTHEN OUR CARDIOVASCULAR PORTFOLIO 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 9306020095 930602 SHAREDLIABILITY SUITS AFFIRMED BY HIGH COURT JUSTICES RULE DEFENDANTS CAN SUE OTHER PARTIES IN SECURITIES CASES BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT SAID DEFENDANTS IN FEDERAL SECURITIESFRAUD LAWSUITS MAY SEEK TO FORCE PARTIES NOT NAMED IN THE SUITS TO PAY A SHARE OF THE DAMAGES THE HIGH COURT SAID ITS RULING WILL PROMOTE FAIRNESS IN ENFORCEMENT OF THE SECURITIES LAWS BY PREVENTING SOME WRONGDOERS FROM BEARING THE ENTIRE RESPONSIBILITY WHEN OTHERS ARE TO BLAME AS WELL THE DECISION AFFIRMED A POSITION TAKEN BY MOST LOWER FEDERAL COURTS THAT HAVE ADDRESSED THE LIABILITYSHARING ISSUE THE SECURITIES AND EXCHANGE COMMISSION ENDORSED THIS POSITION IN A BRIEF FILED WITH THE SUPREME COURT BUT SOME PLAINTIFFS' LAWYERS WARNED THAT THE RULING WILL MAKE IT MORE DIFFICULT TO SETTLE COMPLICATED SECURITIES CASES THEY ARGUE THAT SECURITIES WRONGDOERS WILL HESITATE TO REACH SETTLEMENTS IF THERE IS A CHANCE THEY WILL BE SUED BY OTHERS ACCUSED OF TAKING PART IN THE SAME FRAUD YESTERDAY'S RULING GREW OUT OF ALLEGATIONS OF DECEPTION IN A 1983 PUBLIC STOCK OFFERING BY A SAN DIEGO RETAIL FURNITURE CHAIN THE COMPANY AND SOME OF ITS OFFICERS AGREED TO A 135 MILLION SETTLEMENT WITH SHAREHOLDERS THE INSURANCE COMPANIES THAT PAID MOST OF THE SETTLEMENT ON BEHALF OF THE DEFENDANTS SUED LAWYERS AND ACCOUNTANTS WHO HADN'T BEEN NAMED AS DEFENDANTS IN THE ORIGINAL SHAREHOLDERS' SUIT A FEDERAL TRIAL JUDGE DISMISSED THE INSURERS' SUIT BUT THE FEDERAL APPEALS COURT IN SAN FRANCISCO REINSTATED IT BY A 63 VOTE THE SUPREME COURT YESTERDAY AFFIRMED THAT THE INSURERS MAY PROCEED WITH THEIR EFFORT TO MAKE LAWYERS AND ACCOUNTANTS PAY PART OF THE SETTLEMENT THE HIGH COURT MAJORITY ACKNOWLEDGED THAT THE RELEVANT PROVISION OF THE FEDERAL SECURITIES LAW KNOWN AS SECTION 10B DOESN'T EXPLICITLY AUTHORIZE DEFENDANTS OR THEIR INSURERS TO FILE SUCH LIABILITYSHARING SUITS BUT THE SUPREME COURT MAJORITY HAVING LONG AGO RECOGNIZED AN IMPLIED RIGHT TO SUE UNDER SECTION 10B YESTERDAY SAID IT IS ONLY FAIR TO LET DEFENDANTS TRY TO ALLOCATE LIABILITY ACCURATELY IN HIS OPINION FOR THE MAJORITY JUSTICE ANTHONY KENNEDY STRESSED THAT TWO OTHER ANTIFRAUD PROVISIONS OF THE SECURITIES LAW EXPLICITLY ALLOW DEFENDANTS TO SUE OTHER WRONGDOERS TO BE CONSISTENT AND TO UPHOLD CONGRESS'S OVERALL GOAL OF PREVENTING FRAUD SECTION 10B ALSO SHOULD BE INTERPRETED TO ALLOW SUCH SUITS HE REASONED HE DECLINED TO DISCUSS THE FAIRNESS ISSUE IN ANY DETAIL CHIEF JUSTICE WILLIAM REHNQUIST AND JUSTICES BYRON WHITE JOHN PAUL STEVENS ANTONIN SCALIA AND DAVID SOUTER JOINED THE MAJORITY JUSTICE CLARENCE THOMAS JOINED BY JUSTICES HARRY BLACKMUN AND SANDRA DAY O'CONNOR FILED A DISSENTING OPINION JUSTICE THOMAS SAID THE COURT SHOULDN'T CREATE RIGHTS TO SUE THAT CONGRESS HASN'T EXPLICITLY AUTHORIZED THE FAIRNESS OF HOW DAMAGES ARE ALLOCATED IS IRRELEVANT HE ARGUED ADDING THAT CONGRESS HAS BEEN AND REMAINS FREE TO ALTER STATUTORY PROVISIONS SPELLING OUT THE RIGHT TO FILE LIABILITYSHARING SUITS MUSICK PEELER & GARRETT VS EMPLOYERS INSURANCE OF WAUSAU 9306020094 930602 CREDIT RATINGS MOODY'S IS REVIEWING BRIDGESTONE'S RATING FOR POSSIBLE UPGRADE SPECIAL TO THE WALL STREET JOURNAL TOKYO MOODY'S INVESTORS SERVICE INC ANNOUNCED IT IS REVIEWING ITS BAA1 SENIOR UNSECURED RATING OF BRIDGESTONE CORP A JAPANESE TIRE MAKER FOR A POSSIBLE UPGRADE MOODY'S ALSO SAID IT IS REVIEWING ITS BAA2 SENIOR UNSECURED RATING OF BRIDGESTONE'S FINANCIALLY SUPPORTED SUBSIDIARY BRIDGESTONE FINANCE EUROPE BV FOR POSSIBLE UPGRADE THIS ACTION REFLECTS THE COMPLETION OF BRIDGESTONE'S RESTRUCTURING PLANS IN THE US AND EUROPE MOODY'S SAID THE RATING REVIEW WILL FOCUS ON THE RESULTING IMPACT ON THE COMPANY'S COMPETITIVENESS IN THESE TWO MARKETS AND ITS FINANCIAL PERFORMANCE BRIDGESTONE SPENT 26 BILLION TO PURCHASE FIRESTONE IN 1988 IT ALSO SPENT A SUBSTANTIAL AMOUNT OF ADDITIONAL FINANCIAL RESOURCES TO MODERNIZE FIRESTONE'S WORLDWIDE OPERATIONS 9306020093 930602 INTERNATIONAL LIPPO WINS CONTROL OVER ASIA SECURITIES BID DRAWS SCRUTINY HONG KONG LIPPO LTD EMERGED VICTORIOUS IN THE BATTLE FOR CONTROL OF ASIA SECURITIES INTERNATIONAL LTD BUT NOT WITHOUT DRAWING THE ATTENTION OF HONG KONG'S REGULATORS THE COLONY'S SECURITIES AND FUTURES COMMISSION SAID IT WAS LOOKING INTO MONDAY'S SALE OF THREE BLOCKS OF STOCK THAT GAVE LIPPO JUST MORE THAN 50 OF ASIA SECURITIES EFFECTIVELY BLOCKING A COMPETING TAKEOVER BID BY RIVAL SHAREHOLDER CHINACHEM GROUP LIPPO CONTROLLED BY AN INDONESIAN FAMILY HAD HOPED TO QUIETLY CONSOLIDATE CONTROL OF ASIA SECURITIES WITH A TAKEOVER OFFER OF HK154 20 US CENTS A SHARE LATE LAST MONTH IT ALREADY OWNED JUST UNDER 35 OF ASIA SECURITIES SHARES BUT CLOSELY HELD CHINACHEM INTERVENED BIDDING HK198 A SHARE FOR ALL OF ASIA SECURITIES' SHARES OTHER THAN THE 152 IT ALREADY OWNED CHINACHEM NOW OWNS SLIGHTLY MORE THAN 21 THEN LIPPO ANNOUNCED TUESDAY THAT IT HAD BOUGHT NEARLY 92 MILLION SHARES OR 1585 OF ASIA SECURITIES STOCK PAYING A MAXIMUM OF HK191 A SHARE NEITHER WE NOR OUR FINANCIAL ADVISER SCHRODERS ASIA LTD WAS APPROACHED BY THE SELLERS TO SEE WHETHER WE WOULD PAY MORE THAN HK191 A SHARE SAYS CHINACHEM DIRECTOR JOSEPH LEUNG ABOUT LIPPO'S MANEUVER CHINACHEM HAS ASKED THE SECURITIES COMMISSION TO INVESTIGATE MONDAY'S TRANSACTION 9306020092 930602 INDUSTRY FOCUS HEALTH INSURERS COPE WITH AN EPIDEMIC OF STATE RULES MOST ACTIONS TRY TO AID SMALL BUSINESSES EARNINGS ARE EXPECTED TO SUFFER BY GREG STEINMETZ STAFF REPORTER OF THE WALL STREET JOURNAL CONNECTICUT IS MAKING INSURANCE COMPANIES RENEW MORE HEALTHINSURANCE POLICIES OREGON IS FORCING INSURERS TO CHARGE SICK PEOPLE LESS FOR COVERAGE NEW JERSEY IS DEMANDING THAT INSURERS SELL POLICIES TO ANYONE WHO APPLIES REGARDLESS OF HEALTH FOR INSURANCE COMPANIES ANY IMPACT OF FEDERAL HEALTHCARE REFORM WILL BE AT LEAST A YEAR AWAY BUT IN THE HERE AND NOW INSURERS ARE HAVING TO COPE WITH A FLURRY OF NEW LEGISLATION SERVED UP BY THE STATES SINCE 1990 ALL BUT 10 STATES HAVE PASSED LAWS AIMED AT MAKING HEALTH INSURANCE MORE WIDELY AVAILABLE THE STATE ACTIVITY IS A WARMUP FOR WHAT'S LIKELY TO COME OUT OF WASHINGTON INSURANCE EXPERTS SAY THE STATE LAWS ARE LESS AMBITIOUS THAN WHAT THE ADMINSTRATION ENVISIONS BUT THEY NEVERTHELESS COMPLEMENT RATHER THAN CONFLICT WITH THE REFORMS THE WHITE HOUSE IS LIKELY TO SEEK MANY OF THESE REFORMS WOULD BE ADOPTED AND EMBRACED BY FEDERAL LAW SAID TIMOTHY CAMPBELL VICE PRESIDENT OF GOVERNMENT AFFAIRS FOR TRAVELERS CORP FOR INSURANCE COMPANIES THE CONSEQUENCES OF THE STATE ACTIONS HAVE BEEN SIGNIFICANT SOME HAVE DECIDED TO QUIT CERTAIN STATES OTHERS ARE HAVING TO RETHINK THE WAY THEY DO BUSINESS AND COME TO GRIPS WITH WHAT ARE EXPECTED TO BE POORER RESULTS MY ASSUMPTION IS YOU ARE GOING TO GET A SQUEEZE ON PROFIT MARGINS SAID LEHMAN BROTHERS INSURANCE ANALYST GLORIA VOGEL ALTHOUGH SOME STATES LED BY HAWAII HAVE TRIED TO TACKLE THE BROADER ISSUES OF HOLDING DOWN HEALTH COSTS AND PROVIDING COVERAGE FOR THE UNINSURED MOST OF THE ACTION ON THE STATE LEVEL HAS FOCUSED ON SMOOTHING OUT THE INEQUITIES IN THE WAY INSURERS TREAT SMALL BUSINESSES SMALL COMPANIES AS WELL AS INDIVIDUALS NOT COVERED BY THEIR EMPLOYER OFTEN PAY SUBSTANTIALLY MORE FOR HEALTH INSURANCE THAN BIG CORPORATIONS BECAUSE INSURERS CAN'T SPREAD THEIR RISKS ACROSS A LARGE GROUP OF EMPLOYEES SMALL BUSINESSES ALSO ARE MORE LIKELY TO FACE SHARP RATE INCREASES OR HAVE THEIR POLICIES CANCELED IF AN EMPLOYEE GETS SICK THREE YEARS AGO CONNECTICUT BECAME THE FIRST STATE TO PASS LAWS AIMED AT CORRECTING THE DIFFERENCES SINCE THEN THERE HAS BEEN AN AVALANCHE OF SIMILAR LEGISLATION ACCORDING TO THE HEALTH INSURANCE ASSOCIATION OF AMERICA 26 STATES HAVE FORCED INSURERS TO ISSUE POLICIES TO ANYONE WHO APPLIES REGARDLESS OF THEIR HEALTH THIRTYFOUR STATES HAVE FORCED INSURERS TO GUARANTEE THE RENEWAL OF POLICIES FORTY STATES HAVE PLACED TIGHTER RESTRICTIONS ON INSURANCE RATES THE REFORMS ARE EXPECTED TO REDUCE INSURANCECOMPANY PROFITS BECAUSE INSURERS ARE BEING TOLD TO ACCEPT MORE RISK WITHOUT BEING ABLE TO CHARGE MORE HAVE WE SEEN AN IMPACT ON THE BOTTOM LINE NOT YET BUT I'M SURE WE WILL SAID SCOTT STANTON AN INVESTOR RELATIONS OFFICER FOR JOHN ALDEN FINANCIAL CORP A LARGE MIAMIBASED HEALTH INSURER OREGON'S HEALTHCARE REFORMS HAVE GOTTEN ATTENTION FOR RATIONING CARE TO PROVIDE BASIC HEALTH CARE FOR THE POOR THE STATE'S MEDICAID PROGRAM PLANS TO STOP PAYING FOR THE LEAST COSTEFFECTIVE FORMS OF TREATMENT BUT FOR INSURERS THE BIGGEST IMPACT COMES FROM PROVISIONS DIRECTED AT THEM EARLIER THIS YEAR THE STATE ORDERED INSURERS TO COVER EVERY WORKER OF A SMALL BUSINESS EVEN ONES IN POOR HEALTH BEFORE THE NEW LAW AN INSURER COULD COVER SAY NINE EMPLOYEES OF A 10PERSON COMPANY AND DENY COVERAGE TO THE ONE WORKER WHO WAS ILL THE STATE ALSO PUT CONTROLS ON RATES NO LONGER CAN AN INSURER CHARGE A BUSINESS WITH SICK WORKERS SEVERAL TIMES AS MUCH AS A BUSINESS WITH A HEALTHY WORK FORCE FOR SOME INSURERS THE CHANGES WERE TOO MUCH SEVEN INSURERS INCLUDING TWO WITH A SIZABLE PRESENCE QUIT THE STATE NEW YORK WHICH ALSO PUT LIMITS ON RATES AND FORCED INSURERS TO TAKE SICK APPLICANTS SAW WITHDRAWALS AS WELL STATE FARM MUTUAL AUTOMOBILE INSURANCE CO IS ONE OF NINE COMPANIES THAT DECIDED TO STOP WRITING HEALTHINSURANCE POLICIES IN NEW YORK IF THERE'S NO ABILITY TO LOOK AT A PIECE OF BUSINESS AND RATE IT APPROPRIATELY STATE FARM IS NOT INTERESTED IN COMPETING IN THE MARKETPLACE SAID JAMES RYMAN STATE FARM REGIONAL VICE PRESIDENT NOT EVERY STATE ENCOUNTERED SUCH STRONG RESPONSES AFTER FLORIDA PASSED A REFORM MANY HAILED AS REVOLUTIONARY INSURERS EXPRESSED RELIEF THAT THE LAW WASN'T MORE DRASTIC LIKE THE CLINTON PLAN THE LAW IS PARTLY AIMED AT BRINGING DOWN HEALTHCARE COSTS BUT IT LEFT LARGE PORTIONS OF THE INSURANCE MARKET UNTOUCHED INSURERS ARE ALSO ADAPTING TO CHANGES IN NEW JERSEY AN UNUSUAL ASPECT OF THE STATE'S REFORM DEALT WITH COVERAGE FOR INDIVIDUALS WHO AREN'T PART OF A COMPANY PLAN MOST INSURERS VIEW THE INDIVIDUAL MARKET AS MORE TROUBLE THAN IT'S WORTH BUT NEW JERSEY WANTING TO EXPAND THE NUMBER OF PLAYERS IN THE MARKET ORDERED INSURERS TO BEGIN SELLING TO INDIVIDUALS OR FACE LOSING THE RIGHT TO SELL TO BUSINESSES TRAVELERS CORP WHICH SELLS A SIGNIFICANT AMOUNT OF HEALTH INSURANCE TO NEW JERSEY EMPLOYERS HAS NO DOUBT IT WILL STAY IN THE STATE THE ONLY QUESTION IS WHETHER THE COMPANY WILL MARKET DIRECTLY TO INDIVIDUALS OR PAY INTO A STATE POOL TO COVER THE UNINSURED WE ARE EVALUATING WHAT OUR BEST COURSE IS SAID TRAVELERS VICE PRESIDENT HELEN BARAKAUSKAS SOME OF THE REFORMS COULD EVEN MEAN MORE BUSINESS INSURERS ARE GETTING READY TO WOO NEW PURCHASING COOPERATIVES BEING ESTABLISHED IN OHIO UNDER A NEW LAW SMALL BUSINESSES ARE ENCOURAGED TO BAND TOGETHER TO GET VOLUME DISCOUNTS THE IDEA IS BASED ON A PURCHASING COOPERATIVE ESTABLISHED BY A CLEVELAND BUSINESS GROUP THE GREATER CLEVELAND GROWTH ASSOCIATION THE ASSOCIATION BUYS INSURANCE FOR 10250 EMPLOYERS AND COVERS 175000 LIVES AND IS A HOTLY CONTESTED ACCOUNT FOR INSURERS CALIFORNIA WENT A STEP FURTHER THAN OHIO BY ESTABLISHING STATESPONSORED COOPERATIVES TURNING CURRENT PRACTICE ON ITS HEAD THE COOPERATIVES ARE EMPLOYEEBASED MEANING THEY SELL HEALTH INSURANCE NOT TO SMALL BUSINESSES BUT DIRECTLY TO A COMPANY'S EMPLOYEES ALTHOUGH THE EMPLOYER STILL PAYS THE TAB THE CHANGE IS FORCING COMPANIES TO COME UP WITH NEW MARKETING STRATEGIES AETNA LIFE & CASUALTY CO PLANS TO RUN TELEVISION ADVERTISEMENTS PROMOTING ITS HEALTH MAINTENANCE ORGANIZATION ONE OF THE LARGEST IN THE COUNTRY HMOS TRY TO HOLD DOWN MEDICAL COSTS BY PUTTING STRICT CONTROLS ON DOCTORS AND HOSPITALS AETNA ALSO PLANS A DIRECT MAIL CAMPAIGN THE REFORMS REALLY PUT US INTO THE RETAIL BUSINESS SAID FX MCLELLAN III AETNA VICE PRESIDENT NO STATE HAS BEEN AS AMBITIOUS AS HAWAII IN 1974 IT ORDERED EMPLOYERS TO PROVIDE HEALTH INSURANCE TO THEIR WORKERS TODAY 98 OF THE STATE'S RESIDENTS ARE COVERED IF HAWAII IS THE FUTURE THEN THE HEALTH INSURANCE BUSINESS IS IN FOR SOME CONSOLIDATION ALMOST ALL OF THE STATE'S BUSINESS IS WRITTEN BY JUST TWO COMPANIES THAT SPECIALIZE IN HEALTH MAINTENANCE ORGANIZATIONS KAISER PERMANENTE AND HAWAII MEDICAL SERVICE ASSOCIATION THE STATE'S BLUE CROSS/BLUE SHIELD 9306020091 930602 GM DISCUSSES SETTLING LAWSUIT OVER ITS PICKUPS SIDEMOUNTED GAS TANKS GENERATE MORE CLAIMS OPTIONS ARE UNCLEAR BY DOUGLAS LAVIN AND BRUCE INGERSOLL STAFF REPORTERS OF THE WALL STREET JOURNAL GENERAL MOTORS CORP IS TALKING WITH PLAINTIFFS' ATTORNEYS ABOUT A POSSIBLE SETTLEMENT OF A LAWSUIT SEEKING TO REPRESENT ALL THE OWNERS OF ABOUT 47 MILLION PICKUP TRUCKS WITH SIDEMOUNTED GASOLINE TANKS THE TALKS COME AS GM IS FACING MOUNTING LEGAL PRESSURE FROM AS MANY AS 30 SEPARATE SUITS SEEKING TO BE CERTIFIED AS CLASS ACTIONS A DOZEN OF WHICH HAVE BEEN CONSOLIDATED IN THE CASE NOW IN SETTLEMENT TALKS AND A GROWING NUMBER OF PRODUCTLIABILITY CLAIMS GM SOUGHT TO MINIMIZE THE IMPORTANCE OF THE TALKS SAYING THEY WERE INITIATED BY THE PLAINTIFFS AND COVERED SEVERAL SUBJECTS IN ADDITION TO A POSSIBLE SETTLEMENT MOREOVER THE AUTO MAKER SAID IT WOULD BE IRRESPONSIBLE NOT TO MEET WITH PLAINTIFFS' ATTORNEYS BUT EVEN PRELIMINARY TALKS ARE SIGNIFICANT BECAUSE OF THE SCOPE OF THE CASE WHICH POTENTIALLY COULD REPRESENT ALL THE OWNERS OF GM TRUCKS WITH SIDEMOUNTED GAS TANKS IT ISN'T CLEAR WHAT SETTLEMENT OPTIONS HAVE BEEN DISCUSSED THERE IS NO SPECIFIC SETTLEMENT PROPOSAL UNDER DISCUSSION SAID WILLIAM LERACH ONE OF THE LEAD PLAINTIFFS' ATTORNEYS IN THE CONSOLIDATED ACTION AGAINST GM GM WHICH HAS REFUSED A GOVERNMENT REQUEST TO RECALL THE TRUCKS SAID IT ISN'T DISCUSSING ANY SORT OF REPAIR TO THE TRUCKS AS A PART OF THE NEGOTIATIONS THE TRUCKS MEET ALL FEDERAL SAFETY REQUIREMENTS WE NEVER TALKED ABOUT REPAIRING THE TRUCKS A GM SPOKESMAN SAID GM'S FIGHT WITH THE FEDERAL GOVERNMENT OVER ITS REQUEST TO RECALL THE PICKUPS IS LEGALLY A SEPARATE ISSUE FROM THE SUITS SEEKING CLASSACTION STATUS BUT ANY KIND OF SETTLEMENT IN THAT LITIGATION WOULD REPRESENT A MAJOR SHIFT IN THE COMPANY'S STAUNCH DEFENSE OF THE SAFETY OF ITS TRUCKS GM HAS SETTLED NUMEROUS PRODUCT LIABILITY CASES WITH THE FAMILIES OF INDIVIDUALS INJURED IN PICKUPS BUT NONE OF THE SETTLEMENTS HAVE THE SWEEP OF A CLASSACTION SETTLEMENT WHICH COULD APPLY TO ALL GM TRUCK OWNERS REGARDLESS OF WHETHER THEY'VE BEEN INVOLVED IN ACCIDENTS ESTIMATES OF 1 BILLION GM NO LONGER MANUFACTURES PICKUPS WITH SIDEMOUNTED TANKS WHICH CRITICS SAY EXPLODE EASILY IN SIDE IMPACTS BUT AN ESTIMATED 47 MILLION OF THOSE TRUCKS MADE FROM 1973 TO 1987 ARE STILL ON THE ROAD AND EITHER A RECALL OR A DEFEAT IN A CLASSACTION SUIT COULD EASILY COST THE AUTO MAKER MORE THAN 1 BILLION ANALYSTS SAY A DOZEN SEPARATE SUITS SEEKING TO REPRESENT ALL TRUCK OWNERS AS A CLASS HAVE BEEN COMBINED IN FEDERAL COURT IN PHILADELPHIA THEY SEEK TO FORCE GM TO MAKE THE GAS TANKS LESS DANGEROUS OR TO COMPENSATE ALL TRUCK OWNERS FOR THE COST OF REPAIR TALKS ON THE CONSOLIDATED CASE COME AS SEPARATE STATE CASES ARE PROGRESSING THROUGH THE LEGAL SYSTEM ADDING PRESSURE ON THE AUTO MAKER TO REACH A SETTLEMENT LAST MONTH COURTS IN GEORGIA AND LOUISIANA CERTIFIED TWO OF THE CASES AS CLASS ACTIONS THIS MONTH HEARINGS ON CLASS CERTIFICATION ARE SCHEDULED IN KENTUCKY AND SOUTH CAROLINA IN PHILADELPHIA MEANWHILE US DISTRICT COURT JUDGE WILLIAM YOHN WON'T HEAR UNTIL JULY 19 ARGUMENTS REGARDING A MOTION TO CERTIFY A NATIONAL CLASS OF PLAINTIFFS AGAINST GM I SUSPECT THEY ARE MORE CONCERNED ABOUT STATE COURT JURIES IN TEXAS AND GEORGIA THAN ABOUT THE FEDERAL COURTS SAID MICHAEL G CROW AN ATTORNEY WITH ADAMS & REESE IN NEW ORLEANS A LAW FIRM THAT HAS FILED 10 SEPARATE CASES IN 10 SOUTHERN STATES MR CROW EXPLAINED THAT A MAJOR JURY LOSS IN ANY STATE WOULD MAKE IT SIGNIFICANTLY HARDER FOR GM TO DEFEND ITSELF AT THE NATIONAL LEVEL IN FEBRUARY AN ATLANTA STATE COURT JURY AWARDED 105 MILLION TO THE FAMILY OF A BOY WHO DIED IN A 1989 CRASH IN ONE OF THE GM TRUCKS HE SAID HIS FIRM HAS INFORMED GM THAT UNLESS IT REACHES A NATIONAL SETTLEMENT QUICKLY THE FIRM WILL PROCEED WITH 10 SEPARATE STATE ACTIONS UNLESS A DEAL THAT'S ACCEPTABLE TO US IS MADE BEFORE JUNE 14 WE WILL DO EVERYTHING WITHIN OUR POWER TO KILL A NATIONAL DEAL MR CROW SAID ONCE STATE LITIGATION BEGINS HE ADDED IT WOULD BE BEST FOR PLAINTIFFS TO PROCEED SOME OF THE PLAINTIFFS' ATTORNEYS IN THE CONSOLIDATED CASE SAY GM IS INTERESTED IN A SETTLEMENT THAT WOULD INVOLVE THE ALTERATION OR REPAIR OF THE TRUCKS AN ASSERTION THAT GM ADAMANTLY DENIES A GM SPOKESMAN SAID THAT ANY HINT THAT THE AUTO MAKER IS DISCUSSING REPAIRING ITS TRUCKS IS A MISREPRESENTATION OF THE FACTS GM SAYS NO REPAIRS ARE NEEDED BECAUSE THE TRUCKS ARE SAFE FEDERAL ACCIDENT DATA SHOW THE TRUCKS' FATAL ACCIDENT RECORDS ARE SLIGHTLY WORSE THAN SIMILAR LARGE FORD AND DODGE PICKUPS AND SIGNIFICANTLY BETTER THAN ALL SMALL PICKUPS AND MOST PASSENGER CARS BUT THE FEDERAL GOVERNMENT HAS ASKED FOR A RECALL BECAUSE IT SAYS THE PICKUPS PERFORM SIGNIFICANTLY WORSE THAN DO ITS COMPETITORS IN RELATIVELY RARE FIERY SIDE IMPACTS 9306020090 930602 INTERNATIONAL CANADA POST MAY MAKE AN INVESTMENT IN COURIER CONCERN BY JOHN URQUHART AND ROSANNA TAMBURRI STAFF REPORTERS OF THE WALL STREET JOURNAL OTTAWA CANADA POST CORP WHICH OPERATES CANADA'S MAIL SYSTEM IS CONSIDERING A POSSIBLE INVESTMENT IN THE COUNTRY'S LARGEST COURIER COMPANY PUROLATOR COURIER LTD THE DISCLOSURE BY THE GOVERNMENTOWNED AGENCY PROMPTED AN ANGRY REACTION FROM SOME POLITICIANS AND FROM COMPETITORS IN CANADA'S COURIER INDUSTRY IT IS WRONG WRONG WRONG SAID DON BOUDRIA AN OPPOSITION LIBERAL PARTY MEMBER OF PARLIAMENT CANADA POST HAS NO BUSINESS GETTING INVOLVED IN A SECTOR OF THE INDUSTRY WHICH IS RELATIVELY WELLSERVED AT THE PRESENT TIME BY PRIVATE ENTERPRISE PUROLATOR WHICH ESTIMATES THAT IT HAS ABOUT 43 OF THE CANADIAN COURIER MARKET IS 78OWNED BY ONEX CORP A TORONTO HOLDING COMPANY ONEX CLOSED ON THE TORONTO STOCK EXCHANGE YESTERDAY AT C1175 UP 125 CENTS CANADA POST AND ONEX SAID THEY HAVE BEEN HOLDING DISCUSSIONS ON A POSSIBLE INVESTMENT BY THE GOVERNMENT COMPANY IN PUROLATOR BUT THEY SAID AN AGREEMENT HASN'T YET BEEN REACHED IF PUROLATOR WERE ACQUIRED BY CANADA POST IT WOULD BE AN EXCEPTION TO THE POLICY OF THE PROGRESSIVE CONSERVATIVE PARTY GOVERNMENT WHICH IN THE PAST EIGHT YEARS HAS PRIVATIZED 23 GOVERNMENT COMPANIES AND DISSOLVED 16 OTHERS A SPOKESMAN FOR THE CANADIAN COURIER ASSOCIATION SAID HE DIDN'T KNOW OF ANY POSTAL SERVICE ELSEWHERE THAT HAD ACQUIRED A MAJOR COURIER COMPANY IF THE TRANSACTION GOES FORWARD THE FEDERAL GOVERNMENT'S ANTITRUST DEPARTMENT WOULD CERTAINLY LOOK AT IT TO DETERMINE ITS IMPACT ON COMPETITION IN THE COURIER INDUSTRY A DEPARTMENT SPOKESMAN SAID INDUSTRY ANALYSTS ESTIMATE THAT CANADA POST CURRENTLY HAS LESS THAN A 10 SHARE OF THE COURIER MARKET CANADA POST'S COMPETITORS IN THE COURIER INDUSTRY HAVE BEEN DEMANDING FOR YEARS THAT THE GOVERNMENT TIGHTEN REGULATION OF THE COMPANY TO PREVENT IT FROM USING PROFITS FROM ITS MONOPOLY MAIL SERVICES TO SUBSIDIZE ITS COURIER AND PARCEL OPERATIONS WITHOUT REGULATION CANADA POST CAN CONTINUE TO SET PREDATORYSTYLE PRICES FOR ITS COMPETITIVE SERVICES THAT ARE HEAVILY SUBSIDIZED BY MONOPOLY MAIL REVENUES AND WHICH THREATEN THE SURVIVAL OF OUR PRIVATE COURIER AND PARCELDELIVERY COMPANIES SAID JOHN SANDERSON PRESIDENT OF WESTMINSTER HOLDINGS WESTMINSTER CONTROLS CANPAR TRANSPORT LTD A MAJOR CANADIAN COURIER COMPANY EVERYBODY IS STRUGGLING AGAINST CANADA POST AND THEIR PRICING PRACTICES SAID THOMAS REID EXECUTIVE DIRECTOR OF THE COALITION OF CANADA POST COMPETITORS WHICH MOSTLY REPRESENTS COURIER COMPANIES MR REID SAID HE DIDN'T KNOW OF ANY CANADIAN COURIER COMPANY THAT WAS SHOWING A PROFIT PUROLATOR REPORTED A LOSS OF 94 MILLION CANADIAN DOLLARS US74 MILLION IN 1992 AND A LOSS OF C19 MILLION IN 1991 CANADA POST DISCLOSED YESTERDAY THAT IT HAD NET INCOME OF C256 MILLION IN THE YEAR ENDED MARCH 31 AFTER A LOSS OF C1275 MILLION THE PREVIOUS YEAR IT DIDN'T DISCLOSE THE FINANCIAL PERFORMANCE OF ITS COURIER AND PARCEL SERVICES 9306020089 930602 BUSINESS BRIEF SPECTRANETICS CORP COMPANY FILES COUNTERSUIT IN MEDICAL PATENT DISPUTE SPECTRANETICS CORP SAID IT HAS FILED A COUNTERSUIT IN ITS MEDICAL PATENT DISPUTE WITH ADVANCED INTERVENTIONAL SYSTEMS INC SPECTRANETICS IN A FILING IN US DISTRICT COURT IN SANTA ANA CALIF SAID ADVANCED INTERVENTIONAL IN IRVINE CALIF IS INFRINGING ON TWO PATENTS RELATING TO ITS FIBER OPTIC EQUIPMENT USED IN UNBLOCKING OBSTRUCTED HUMAN ARTERIES THE COMPANY SAID ADVANCED INTERVENTIONAL HAS BEEN TRAINING PHYSICIANS TO CARRY OUT SURGICAL METHODS THAT INFRINGE ON SPECTRANETICS PATENTS THE COMPANY ALSO FILED COUNTERCLAIMS ALLEGING FALSE ADVERTISING TRADE LIBEL AND UNFAIR COMPETITION AMONG OTHER THINGS ADVANCED INTERVENTIONAL SAID IT HAD NOT SEEN THE LAWSUIT AND DECLINED TO COMMENT ADVANCED INTERVENTIONAL A MAKER OF LASER ANGIOPLASTY SYSTEMS IN MARCH SUED SPECTRANETICS IN US DISTRICT COURT IN LOS ANGELES FOR ALLEGED PATENT INFRINGEMENT 9306020088 930602 HIGH COURT RULES WORKERS CAN'T SEEK DAMAGES FROM PENSIONPLAN ADVISERS BY PAUL M BARRETT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE SUPREME COURT MADE IT TOUGHER FOR WORKERS TO GO TO COURT TO RECOVER LOSSES CAUSED BY MISMANAGEMENT OF PENSION PLANS IN A 54 RULING THE HIGH COURT SAID CURRENT OR FORMER EMPLOYEES CAN'T SEEK MONEY DAMAGES FROM OUTSIDE PROFESSIONALS WHOM EMPLOYERS CONSULT ABOUT THEIR PENSION PLANS THE DECISION WAS A VICTORY FOR FIRMS THAT PROVIDE ACTUARIAL AND ACCOUNTING SERVICES TO PENSION PLANS SEPARATELY THE JUSTICES HANDED LENDERS A BIG VICTORY BY RULING THAT INDIVIDUALS IN BANKRUPTCY PROCEEDINGS CAN'T REDUCE THEIR HOME MORTGAGE DEBT TO THE AMOUNT OF THE PROPERTY'S CURRENT MARKET VALUE THE QUESTION HAS ARISEN FREQUENTLY IN RECENT YEARS AS HOME VALUES HAVE DROPPED IN MANY AREAS YESTERDAY'S PENSIONLAW RULING DOESN'T AFFECT THE LIABILITY OF OFFICIALS WHO CONTROL AND MANAGE PENSION PLANS THE EMPLOYEE RETIREMENT INCOME SECURITY ACT KNOWN AS ERISA STATES EXPLICITLY THAT THESE SOCALLED FIDUCIARIES MAY BE SUED FOR LOSSES CAUSED BY THEIR MISMANAGEMENT OR FRAUD BUT THE HIGHCOURT MAJORITY SAID THAT THE FEDERAL PENSIONPROTECTION LAW SHOULDN'T BE INTERPRETED TO ALLOW SIMILAR MONETARY CLAIMS AGAINST ADVISERS WHO AREN'T CONSIDERED FIDUCIARIES THE RULING REBUFFED SOME LOWER COURTS THAT HAD READ ERISA MORE EXPANSIVELY ON THE THEORY THAT CONGRESS INTENDED THE 1974 LAW TO INCREASE LEGAL PROTECTION OF PENSION BENEFICIARIES THE CASE INVOLVED A LAWSUIT FILED AGAINST AN ACTUARIAL FIRM BY PARTICIPANTS IN A KAISER STEEL CORP RETIREMENT PLAN THE PLAINTIFFS ALLEGED THAT IN THE EARLY 1980S THE ACTUARIAL FIRM FAILED TO DISCLOSE THAT THE KAISER PLAN WASN'T ADEQUATELY FUNDED THEY SAID THE FIRM DIDN'T WANT TO JEOPARDIZE ITS LUCRATIVE RELATIONSHIP WITH KAISER FEDERAL REGULATORS EVENTUALLY TERMINATED THE PLAN SUBSTANTIALLY REDUCING BENEFITS A FEDERAL TRIAL JUDGE DISMISSED THE BENEFICIARIES' SUIT AND THE FEDERAL APPEALS COURT IN SAN FRANCISCO AFFIRMED THAT DECISION THE PLAINTIFFS APPEALED TO THE SUPREME COURT THEY GOT THE SUPPORT OF THE JUSTICE AND LABOR DEPARTMENTS WHICH ARGUED IN A JOINT BRIEF THAT THE KEY LANGUAGE IN ERISA AUTHORIZES MONETARY CLAIMS AGAINST NONFIDUCIARIES WHO PARTICIPATE IN MISMANAGEMENT BUT THE HIGHCOURT MAJORITY REJECTED A BROAD INTERPRETATION OF THE RELEVANT PROVISION OF ERISA WHICH ALLOWS COURTS TO AWARD APPROPRIATE EQUITABLE RELIEF TO REDRESS PENSIONLAW VIOLATIONS WRITING FOR THE MAJORITY JUSTICE ANTONIN SCALIA STRESSED THAT EQUITABLE RELIEF IS A LEGAL TERM OF ART TRADITIONALLY UNDERSTOOD TO REFER TO SUCH REMEDIES AS JUDICIAL ORDERS NOT AWARDS THAT COMPENSATE PLAINTIFFS FOR THEIR LOSSES JUSTICE SCALIA DISMISSED ARGUMENTS THAT THE MAJORITY'S APPROACH WOULD AFFORD WORKERS LESS PROTECTION THAN THEY ENJOYED BEFORE ERISA REPLACED STATE PENSION LAWS IN 1974 EVEN IF ERISA DID HAVE THIS EFFECT JUSTICE SCALIA ASSERTED THE STATUTE SHOULDN'T BE INTERPRETED LIBERALLY TO REFLECT CONGRESS'S GOAL OF SAFEGUARDING RETIREMENT BENEFITS VAGUE NOTIONS OF A STATUTE'S BASIC PURPOSE' ARE INADEQUATE TO OVERCOME THE WORDS OF ITS TEXT REGARDING THE SPECIFIC ISSUE UNDER CONSIDERATION HE CONCLUDED JOINING THE MAJORITY WERE JUSTICES HARRY BLACKMUN ANTHONY KENNEDY DAVID SOUTER AND CLARENCE THOMAS YESTERDAY'S BANKRUPTCYLAW RULING EXTENDED A RULE FAVORING LENDERS TO A WIDER RANGE OF CASES LAST YEAR THE SUPREME COURT SAID THAT UNDER CHAPTER 7 OF THE BANKRUPTCY CODE WHICH COVERS LIQUIDATIONS A DEBTOR MAY NOT UNILATERALLY REDUCE THE AMOUNT OWED TO A LENDER TO MATCH THE CURRENT MARKET VALUE OF THE PROPERTY SECURING THE LOAN THAT RULING PROTECTED THE INTERESTS OF LENDERS IN REGIONS WHERE PROPERTY VALUES PLUMMETED IN THE 1980S A UNANIMOUS HIGH COURT SAID YESTERDAY THAT MORTGAGE LENDERS WERE SIMILARLY PROTECTED IN BANKRUPTCY CASES FILED UNDER CHAPTER 13 WHICH ALLOWS INDIVIDUALS TO KEEP MOST OF THEIR ASSETS AND FORMULATE A PLAN FOR PAYING THEIR CREDITORS OVER A PERIOD OF YEARS THE CASE BEFORE THE COURT INVOLVED A DALLAS COUPLE IN CHAPTER 13 PROCEEDINGS WHO OWED 71000 ON THEIR CONDOMINIUM BUT SOUGHT TO REDUCE THAT DEBT TO 23500 THE CURRENT VALUE OF THE PROPERTY THE SUPREME COURT AFFIRMED THE RULINGS OF LOWER COURTS THAT REJECTED THE COUPLE'S PROPOSAL THE BANKRUPTCY CODE ALLOWS PEOPLE IN CHAPTER 13 TO MODIFY OR REDUCE SOME OF THEIR DEBTS JUSTICE CLARENCE THOMAS OBSERVED IN THE HIGH COURT'S MAIN OPINION BUT HE ADDED A SEPARATE PROVISION PROTECTS LENDERS AGAINST DEBTORS' EFFORTS TO SHRINK WHAT THEY OWE ON MORTGAGES ON THEIR PRIMARY RESIDENCE IN A BRIEF CONCURRING OPINION JUSTICE JOHN PAUL STEVENS POINTED OUT THAT THE LEGISLATIVE HISTORY OF THE BANKRUPTCY CODE INDICATES THAT CONGRESS TREATED MORTGAGE LENDERS FAVORABLY SO AS TO ENCOURAGE THEM TO MAKE MORE LOANS TO WOULDBE HOME BUYERS IN OTHER ACTIONS THE HIGH COURT 9306020087 930602 INTERNATIONAL BRIEF MANNESMANN AG GERMAN CONCERN EXPECTS FIRSTHALF OPERATING LOSS GERMAN INDUSTRIAL GROUP MANNESMANN AG SAID IT EXPECTS TO POST AN OPERATING LOSS FOR THE FIRST HALF OF 1993 AND WILL NEED A GENERAL ECONOMIC RECOVERY TO PUSH IT BACK INTO THE BLACK WE MUST COUNT ON AN OPERATING LOSS FOR THE FIRST HALF OF THE YEAR FOLLOWING OPERATING LOSSES ALREADY REGISTERED IN THE FIRST FOUR MONTHS OF 1993 WERNER DIETER CHAIRMAN SAID AT A NEWS CONFERENCE THE OFFICIAL WARNED THAT THE COMPANY'S OWN RESTRUCTURING EFFORTS WON'T BE SUFFICIENT TO PULL IT OUT OF LOSSES EVEN THOUGH THE GROUP PLANS THIS YEAR TO DISMISS PROBABLY MORE WORKERS THAN THE 7700 TERMINATED IN 1992 AND EXPECTS A POSITIVE CONTRIBUTION FROM ITS PLANTBUILDING UNIT AS OF THE SECOND HALF OF THE YEAR HE ATTRIBUTED THE LOSSES TO WORLDWIDE PRICE PRESSURE CURRENCY FLUCTUATIONS WITHIN EUROPE AND ONETIME CHARGES RESULTING FROM LAYOFFS 9306020086 930602 KEY INTEREST RATES ANNUALIZED INTEREST RATES ON CERTAIN INVESTMENTS AS REPORTED BY THE FEDERAL RESERVE BOARD ON A WEEKLYAVERAGE BASIS WEDNESDAY MAY 19 1993 CYIELDS ADJUSTED FOR CONSTANT MATURITY 9306020085 930602 TECHNOLOGY & HEALTH FOLIC ACID AN INGREDIENT IN VEGETABLES MAY PREVENT CANCER SAY RESEARCHERS BY ELYSE TANOUYE STAFF REPORTER OF THE WALL STREET JOURNAL FOLIC ACID A B VITAMIN MAY BE ONE OF THE KEY INGREDIENTS IN FRUITS AND VEGETABLES THAT PREVENT COLON CANCER THEORIZE RESEARCHERS AT THE HARVARD MEDICAL AND PUBLIC HEALTH SCHOOLS FOLIC ACID APPEARS TO HELP THE PROCESS THAT TURNS CANCER GENES OFF ACCORDING TO THE RESEARCHERS LED BY EDWARD GIOVANNUCCI OF THE HARVARD MEDICAL SCHOOL ALCOHOL INTAKE THEY ADDED BLOCKS FOLIC ACID'S ACTION AND MAY PROMOTE CANCER THIS TRANSLATES INTO EVEN STRONGER EVIDENCE THAT WE SHOULD ENCOURAGE PEOPLE TO EAT AS MUCH FRUITS AND VEGETABLES AS THEY CAN SAID GLADYS BLOCK A PROFESSOR AT THE UNIVERSITY OF CALIFORNIA BERKELEY SCHOOL OF PUBLIC HEALTH GOVERNMENT FARM POLICIES SHOULD BE SET TO ENABLE PEOPLE TO EAT MORE FRUITS AND VEGETABLES ADDED DR BLOCK WHO WROTE AN EDITORIAL ACCOMPANYING THE HARVARD STUDY BOTH PUBLISHED IN TODAY'S ISSUE OF THE JOURNAL OF THE NATIONAL CANCER INSTITUTE THE HARVARD RESEARCHERS HYPOTHESIZE THAT FOLIC ACID HELPS TRANSFER A COMPOUND CALLED METHYL FROM MOLECULES COMMONLY FOUND IN THE BODY TO OTHER MOLECULES THAT TURN OFF CANCER GENES WHEN THE PROCESS CALLED METHYLATION DOESN'T WORK AS IS SUPPOSED WHEN ALCOHOL IS INTRODUCED CANCER GENES PRODUCE PROTEINS THAT MAY CAUSE THE CELLS TO PROLIFERATE DR GIOVANNUCCI SAID THE RESEARCHERS STUDIED 15984 WOMEN BETWEEN 1980 AND 1990 AND 9490 MEN BETWEEN 1986 AND 1990 WHO HAD TESTS TO DETECT COLORECTAL ADENOMAS BENIGN TUMORS THAT CAN LEAD TO CANCER TUMORS WERE DIAGNOSED AND STUDIED IN 564 WOMEN AND 331 MEN THE DATA WERE DRAWN FROM TWO LARGE EPIDEMIOLOGICAL STUDIES THE NURSES' HEALTH STUDY AND THE HEALTH PROFESSIONALS FOLLOWUP STUDY WHICH STUDIED A BROAD RANGE OF HEALTH ISSUES ANALYZING INFORMATION OBTAINED FROM QUESTIONNAIRES ON THE PATIENTS' DIETS DURING A ONEYEAR PERIOD THE RESEARCHERS FOUND THAT A HIGH INTAKE OF FOLIC ACID FROM FRESH FRUITS AND VEGETABLES AND VITAMIN SUPPLEMENTS WAS ASSOCIATED WITH A LOWER RISK OF DEVELOPING THE TUMORS IN ADDITION PEOPLE WHO HAD THE EQUIVALENT OF TWO ALCOHOLIC DRINKS A DAY WERE AT AN 85 HIGHER RISK OF DEVELOPING THE TUMORS THAN NONDRINKERS AN AMINO ACID METHIONINE MAY ALSO PROVIDE THE SAME PROTECTION AS FOLIC ACID THE RESEARCHERS FOUND METHIONINE IS FOUND IN FISH AND CHICKEN THE FINDINGS ADD TO A GROWING BODY OF EVIDENCE THAT SEVERAL FACTORS MAY BE AT WORK IN THE PREVENTION OF COLON CANCER DR BLOCK SAID OTHER VITAMINS AND NUTRIENTS SUCH AS VITAMINS C AND E AND CAROTENOIDS ALSO APPEAR TO WORK AGAINST CANCER SHE ADDED THE EVIDENCE ON FIBER IS MIXED IN PART BECAUSE MANY STUDIES ASSUMED THE BENEFIT OF FRUIT INTAKE WAS FROM THE FIBER SHE SAID A SECOND STUDY IN THE JOURNAL CONFIRMS THAT DIETS HIGH IN SATURATED FATS AND LOW IN CARBOHYDRATES FRUITS AND VEGETABLES MAY INCREASE CANCER RISK ALTHOUGH SOME HEALTH EXPERTS RECOMMEND AGAINST TAKING VITAMIN SUPPLEMENTS IN PLACE OF FRUITS AND VEGETABLES DR BLOCK ADVOCATES SUPPLEMENTS AND FORTIFYING PREPARED FOODS BECAUSE MOST PEOPLE DON'T EAT BALANCED DIETS NUTRITIONISTS WOULD SAY THEY OUGHT TO EAT THE WHOLE FRESH FRUIT AND I AGREE SHE SAID BUT THEY'RE NOT 9306020084 930602 SALAD OIL SWINDLE' FIGURE PLEADS GUILTY IN NEW CASE ROCHESTER NY NEARLY 30 YEARS AFTER BECOMING FAMOUS IN THE GREAT SALAD OIL SWINDLE ANTHONY TINO DE ANGELIS PLEADED GUILTY TO A NEW SWINDLE THE 78YEAROLD MR DE ANGELIS YESTERDAY ADMITTED IN FEDERAL COURT TO ONE COUNT OF INTERSTATE TRANSPORTATION OF FALSELY MADE FORGED AND COUNTERFEITED LETTERS OF CREDIT THE LETTERS TOTALING 460000 WERE USED TO OBTAIN MEAT FROM FEARMANS FRESH MEATS A UNIT OF MAPLE LEAF FOODS INC IN TORONTO HE FACES A MAXIMUM 10 YEARS IN PRISON AND A 10000 FINE AT SENTENCING AUG 4 AS DESCRIBED IN A PAGEONE ARTICLE IN THE WALL STREET JOURNAL LAST DEC 24 THE CASE MARKS THE THIRD TIME IN FOUR DECADES THAT MR DE ANGELIS HAS BEEN SNARED IN A COMMODITIESRELATED CAPER IN COURT MR DE ANGELIS SAID HE BORE NO ILL WILL TOWARD PROSECUTORS BUT HE ACCUSED AGRICULTURE DEPARTMENT INVESTIGATORS OF A LONG EFFORT TO UNDERMINE HIM ADDING THAT THEY'LL BE JUDGED BY A HIGHER TRIBUNAL THAN THIS COURT MR DE ANGELIS SERVED SEVEN YEARS IN PRISON FOR THE SALADOIL SWINDLE IN THE 1960S A CRIME THAT BANKRUPTED A UNIT OF AMERICAN EXPRESS CO AND THREE YEARS FOR A HOG SWINDLE IN THE 1970S CHARLES PILATO A FEDERAL PROSECUTOR IN ROCHESTER SAID THE GUY IS JUST A UNIQUE CHARACTER THAT ONLY COMES BY THANKFULLY ONCE IN A WHILE MR DE ANGELIS'S ATTORNEY FRED GALLINA SAID HIS CLIENT FELT IT WAS IN HIS BEST INTEREST TO ENTER A PLEA AND COOPERATE WITH THE GOVERNMENT AND MINIMIZE HIS EXPOSURE AT 78 YEARS OLD HE'S COMMITTED TO PAYING BACK ANYONE WHO'S OWED MONEY 9306020083 930602 TECHNOLOGY & HEALTH FDA AGAIN PLANS TO PROPOSE LIMITS ON DIETARY LABELS BY ROSE GUTFELD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON WITH A CONGRESSIONALLY ORDERED TRUCE ENDING THE FOOD AND DRUG ADMINISTRATION IS ABOUT TO RENEW ITS ATTACK ON DIETARYSUPPLEMENTS LABELING THE AGENCY'S PLANS HAVE ALREADY LED THE 35BILLION SUPPLEMENTS INDUSTRY AND ITS ALLIES IN CONGRESS TO MOUNT A VIGOROUS DEFENSE INCLUDING A LETTERWRITING CAMPAIGN AND THE INTRODUCTION OF LEGISLATION TO BLUNT THE FDA ACTION THE PLANS ALSO COME AT A TIME WHEN INCREASING NUMBERS OF AMERICANS ARE TAKING NUTRITIONAL SUPPLEMENTS WHICH RANGE FROM DAILY VITAMINS AND MINERALS TO EXOTIC BLENDS OF HERBS AND PROTEIN SUPPLEMENTS THE FDA IS PLANNING TO PROPOSE RULES RESTRICTING HEALTH CLAIMS THAT CAN BE LISTED ON THE LABELS OF NUTRITIONAL SUPPLEMENTS CLAIMS WOULDN'T BE ALLOWED UNLESS THERE IS SIGNIFICANT AGREEMENT WITHIN THE SCIENTIFIC COMMUNITY THAT A LINK BETWEEN THE NUTRIENT AND THE HEALTH BENEFIT HAS BEEN ESTABLISHED LAST YEAR THE FDA PLANNED TO ISSUE THE SAME RULES BUT THE SUPPLEMENTS INDUSTRY PERSUADED CONGRESS TO BLOCK THE ACTION TEMPORARILY PROPOSALS ARE TO BE ISSUED THIS MONTH BUT THE AGENCY IS BARRED FROM ENFORCING ANY RULES UNTIL YEAR END FDA'S GOALS IN REGULATING THE ENTIRE SPECTRUM OF PRODUCTS REFERRED TO AS DIETARY SUPPLEMENTS ARE AS STRAIGHTFORWARD AS THEY ARE SIMPLE SAID MICHAEL TAYLOR DEPUTY COMMISSIONER FOR POLICY THEY ARE TO ASSURE THAT THE PRODUCTS ARE SAFE AND PROPERLY LABELED AND THAT ANY DISEASE OR HEALTHRELATED CLAIMS ARE SCIENTIFICALLY SUPPORTED BRUCE SILVERGLADE DIRECTOR OF LEGAL AFFAIRS AT THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST WHO SUPPORTS THE FDA'S PROPOSED RULES SAID THE CREDIBILITY OF SUPPLEMENT PRODUCTS IS SUFFERING BECAUSE THE INDUSTRY HAS OPPOSED LEGISLATION THAT WOULD ESTABLISH A LEVEL PLAYING FIELD AS A RESULT IT'S PRACTICALLY IMPOSSIBLE FOR CONSUMERS TO DIFFERENTIATE BETWEEN CLAIMS THAT ARE WELLFOUNDED AND OTHERS THAT ARE DOWNRIGHT DISHONEST IN ITS PROPOSALS THE FDA INTENDS TO SERVE NOTICE TO MAKERS OF AMINO ACID SUPPLEMENTS WHICH ARE USED BY BODY BUILDERS AMONG OTHERS THAT THEY MUST DEMONSTRATE THAT THE PRODUCTS ARE SAFE AND SHOULDN'T BE SUBJECT TO ADDED REGULATION THE AGENCY ALSO PLANS TO LIST ITS CONCERNS ABOUT HERBAL PRODUCTS AND SEEK COMMENT ON HOW BEST TO ADDRESS THEM INDUSTRY OFFICIALS HOWEVER CONTEND THAT THE FDA STANDARDS WOULD BAR MANY OF THE CLAIMS CURRENTLY MADE EFFECTIVELY FORCING MANY PRODUCTS OFF SHELVES THEY COMPLAIN THAT STUDIES REQUIRED TO PRODUCE A SCIENTIFIC CONSENSUS TYPICALLY TAKE YEARS TO PERFORM AND THAT CONSUMERS DESERVE THE RIGHT TO MAKE THEIR OWN CHOICES ABOUT PRODUCTS IN THE MEANTIME MOREOVER THEY SAID THAT REPORTS OF FRAUDULENT CLAIMS ARE OVERSTATED GIVE US GUIDELINES WITH REASONABLE HEALTH CLAIMS WE CAN MAKE SAID GERALD KESSLER EXECUTIVE DIRECTOR OF THE NUTRITIONAL HEALTH ALLIANCE THEN THE INDUSTRY WOULD GO AFTER PEOPLE MAKING UNSUBSTANTIATED CLAIMS THE LOBBYING HAS FOUND SOME WELCOME EARS IN CONGRESS BILLS PROPOSED BY SEN ORRIN HATCH R UTAH AND REP BILL RICHARDSON D NM WOULD SET A LESS RIGOROUS STANDARD FOR CLAIMS THAN WOULD BE ALLOWED UNDER THE FDA PROPOSALS WHICH ARE DESIGNED TO CARRY OUT A 1990 LAW 9306020082 930602 BUSINESS BRIEF DUTY FREE INTERNATIONAL INC FIRSTQUARTER NET TRIPLED ACQUISITION IS COMPLETED DUTY FREE INTERNATIONAL INC SAID NET INCOME FOR ITS FISCAL FIRST QUARTER NEARLY TRIPLED FROM THE YEAREARLIER PERIOD IN WHICH IT HAD A ONETIME CHARGE RELATED TO AN ACQUISITION DUTY FREE RIDGEFIELD CONN ALSO SAID IT COMPLETED ITS PREVIOUSLY ANNOUNCED ACQUISITION OF A CONTROLLING INTEREST IN BARED JEWELERS OF THE VIRGIN ISLANDS INC FOR 13 MILLION IN CASH AND STOCK FOR THE QUARTER ENDED APRIL 30 THE OPERATOR OF 161 DUTYFREE STORES SAID ITS NET INCOME GREW TO 51 MILLION OR 19 CENTS A SHARE FROM 18 MILLION OR SIX CENTS A SHARE DUTY FREE HAD A 44 MILLION CHARGE IN THE YEAREARLIER PERIOD RELATED TO ITS ACQUISITION OF UNITED EXPORT TRADING ASSOCIATION A SAN ANTONIOBASED OPERATOR OF DUTYFREE STORES SALES FOR THE PERIOD ROSE 09 TO 779 MILLION FROM 772 MILLION 9306020081 930602 AND MANAGED COMPETITION WORKS BY GLENN MELNICK IN THE SUMMER OF 1982 CALIFORNIA'S LEGISLATURE ENACTED THE NATION'S FIRST MANAGEDCOMPETITION PROGRAM FOR THE HEALTHCARE SYSTEM WHAT HAVE WE LEARNED FROM THIS POLICY EXPERIMENT THAT CAN HELP GUIDE REFORM OF THE US HEALTHCARE SYSTEM BY CHANGING THE ECONOMIC INCENTIVES TO ENCOURAGE PROVIDERS TO COMPETE ON THE BASIS OF PRICE HEALTHCARE COSTS AND PRICES CAN BE LOWERED OUR RESEARCH AT RAND AND UCLA SHOWS THAT HOSPITALS WHEN FACED WITH THE NEED TO COMPETE FOR MANAGEDCARE CONTRACTS WILL CUT THEIR COSTS SUBSTANTIALLY AND QUICKLY WE HAVE ALSO LEARNED INCIDENTALLY THAT SUCH COSTCUTTING MAY EXACERBATE THE ACCESS PROBLEMS OF THE UNINSURED AND THUS UNDERSCORES THE NEED TO EXPAND COVERAGE TO THE ENTIRE POPULATION THE FIRST EVIDENCE OF THE COSTCUTTING POTENTIAL OF PRICE COMPETITION CAME FROM HOSPITALS WHICH CONSTITUTE THE LARGEST COMPONENT OF THE NATION'S HEALTHCARE BILL IT CAME VERY QUICKLY AFTER THE INTRODUCTION OF THE CALIFORNIA LAW WHICH ENCOURAGED THE FORMATION OF MANAGEDCARE PLANS THAT COULD SELECTIVELY CONTRACT ON THE BASIS OF PRICE AS WELL AS THE TRADITIONAL FACTORS OF QUALITY AND SERVICE IN THE PERIOD BEFORE CALIFORNIA'S LEGISLATION TOTAL HOSPITAL EXPENSES INCREASED AT THE SAME RATE IN BOTH HIGHLY COMPETITIVE AND LESS COMPETITIVE MARKETS BUT AFTER ENACTMENT HOSPITALS IN MORE COMPETITIVE MARKETS QUICKLY AND AGGRESSIVELY CUT THEIR COSTS DURING THAT PERIOD CALIFORNIA'S HEALTHCARE MANAGERS RADICALLY RESTRUCTURED THEIR APPROACH TO COST MANAGEMENT AS WELL AS PATIENT SERVICES HOSPITALS ONCE CONSIDERED ALMOST COMPLETELY FIXEDCOST OPERATIONS BECAME HIGH VARIABLECOST CENTERS WITH STAFFING THE LARGEST ELEMENT OF HOSPITAL COSTS ADJUSTED UP OR DOWN ON A DAYTODAY BASIS DEPENDING ON FLUCTUATIONS IN THE DAILY PATIENT CENSUS BECAUSE HOSPITALS FACED LESS PRESSURE ON OUTPATIENT PRICES THAN ON INPATIENT PRICES MANY PROCEDURES THAT HAD HISTORICALLY REQUIRED SEVERAL DAYS IN THE HOSPITAL WERE NOW BEING TREATED ON AN OUTPATIENT BASIS FINALLY MANY HOSPITALS WHILE CUTTING OVERALL COSTS INSTITUTED PROGRAMS TO IMPROVE THE LEVEL OF SERVICE TO THEIR PATIENTS TO WIN THEIR LONGTERM LOYALTY IN THE 198385 PERIOD TOTAL REAL HOSPITAL COSTS PER CAPITA ACTUALLY FELL IN CALIFORNIA WHILE NATIONWIDE THEY CONTINUED TO GROW AT ABOUT 3 A YEAR IN REAL TERMS DURING THE LATTER PART OF THE 1980S PERCAPITA HOSPITAL COSTS IN CALIFORNIA GREW BUT AT A SUBSTANTIALLY LOWER RATE THAN THE REST OF THE NATION IN 1990 PERCAPITA COSTS IN CALIFORNIA AGAIN DECLINED IN REAL TERMS THIS MEANS THAT WHILE TOTAL PERCAPITA HOSPITAL COSTS IN THE US GREW BY ALMOST 30 IN REAL TERMS BETWEEN 1983 AND 1990 THEY GREW BY SLIGHTLY LESS THAN 9 IN CALIFORNIA THE COSTCONTAINMENT POTENTIAL FOR MANAGED COMPETITION IS NOT A ONETIME SAVING BUT SUSTAINABLE OVER TIME IN SUMMARY THE AVAILABLE EVIDENCE FROM CALIFORNIA'S 10YEAR EXPERIENCE SUGGESTS THAT PRICE COMPETITION CAN ENCOURAGE HEALTHCARE MANAGERS AND PROVIDERS TO MANAGE HEALTHCARE RESOURCES AND MEET HEALTHCARE NEEDS IN A MORE COSTEFFECTIVE MANNER WITHOUT FORGETTING ABOUT PATIENT SERVICE AND SATISFACTION OF COURSE SEVERAL OTHER FACTORS MUST BE CONSIDERED IF MANAGED COMPETITION IS TO BECOME PART OF A NATIONAL SYSTEM ONE IS THAT MANAGEDCARE PLANS MUST COVER A HIGH ENOUGH SHARE OF THE INSURED POPULATION TO WIN DISCOUNTS FROM PROVIDERS THE PROPOSED FORMATION OF LARGE HEALTH INSURANCE PURCHASING COOPERATIVES WILL FACILITATE ENROLLMENT IN MANAGEDCARE PLANS GIVING THESE POOLS INCREASED MARKET POWER OVER HEALTHCARE PROVIDERS OUR RESEARCH HAS SHOWN THAT HEALTH INSURANCE PLANS ARE ABLE TO OBTAIN SUBSTANTIAL DISCOUNTS WHEN THEY REPRESENT A LARGE NUMBER OF SUBSCRIBERS DISCOUNTS ARE EVEN GREATER WHEN THE HEALTH INSURANCE PLAN IS NEGOTIATING WITH HOSPITALS IN MORE COMPETITIVE MARKETS THUS THE INSURANCE PLANS ARE ABLE TO EXPLOIT NOT ONLY MARKET POWER BUT COMPETITIVE MARKET CONDITIONS IN THE PROVIDER MARKET TO SECURE GREATER DISCOUNTS CALIFORNIA'S MEDICAID PROGRAM MEDICAL HAS USED THESE ELEMENTS OF MANAGED COMPETITION TO REDUCE PROGRAM EXPENDITURES BY MORE THAN 1 BILLION OVER THE PAST DECADE ALTHOUGH NOT YET COMPLETE OUR RESEARCH TO DATE ON PHYSICIAN BEHAVIOR UNDER MANAGED COMPETITION IS SIMILAR TO OUR FINDINGS ON THE HOSPITAL SECTOR AN IMPORTANT ASPECT OF MANAGED COMPETITION IS THAT IT HAS ITS GREATEST IMPACT IN AREAS WHERE THERE ARE ENOUGH COMPETING PROVIDERS WITH ENOUGH EXCESS CAPACITY TO GENERATE COMPETITIVE PRESSURE IN THE MARKET WHERE THERE'S INSUFFICIENT COMPETITION THE SAVINGS ARE LESS MR MELNICK IS AN ASSOCIATE PROFESSOR AT THE UCLA SCHOOL OF PUBLIC HEALTH AND A RESIDENT CONSULTANT AT RAND SEE RELATED STORY PRICING HEALTH CARE IN CALIFORNIA MERGER MANIA AFFLICTS HOSPITALS WSJ JUNE 2 1993 9306020080 930602 BOLIVIANS ARE HIGH ON A TOOTHPASTE MADE FROM COCA EXPORTERS EXPRESS RESENTMENT THAT KINSHIP TO COCAINE IS BLOWING THEIR BUSINESS BY THOMAS KAMM STAFF REPORTER OF THE WALL STREET JOURNAL LA PAZ BOLIVIA CASTO RIVERO MADE A BIG MISTAKE WHEN HE TRAVELED TO URUGUAY RECENTLY HE TOOK ALONG TWO TUBES OF TOOTHPASTE NOT JUST ANY TOOTHPASTE THOUGH IT WAS CODENT AS ITS ADS HERE SAY IT'S DIFFERENT AND VERY BOLIVIAN INDEED CODENT IS MADE WITH COCA LEAF WHICH HAPPENS ALSO TO BE THE RAW MATERIAL FOR COCAINE SO WHEN A URUGUAYAN CUSTOMS OFFICER SPOTTED THE TOOTHPASTE HE WHISTLED FOR HELP TWO COLLEAGUES CAME RUSHING OVER ONE SNIFFED THE TOOTHPASTE THE OTHER TASTED IT BOTH REACHED THE SAME CONCLUSION DRUGS WHEN THEY SAW THE TOOTHPASTE THEY THOUGHT I WAS A BIG FISH A PABLO ESCOBAR SAYS MR RIVERO A 62YEAROLD TRADE UNIONIST WHO WAS ON HIS WAY TO MONTEVIDEO TO ATTEND A SEMINAR ON PRIVATIZATION I SAID IT'S A COCA DERIVATIVE THAT'S LEGAL IN MY COUNTRY BUT THEY DIDN'T BELIEVE IT ACCORDING TO THEIR LAWS IT'S TOTALLY ILLEGAL THEY DETAINED ME FOR FIVE HOURS SCORE IT AS ANOTHER SETBACK FOR COCA DIPLOMACY AS THE BOLIVIANS CALL IT CLAIMING THAT THE INNOCENT ERYTHROXYLUM COCA IS GETTING A BUM RAP BECAUSE OF ITS NEFARIOUS OFFSHOOT COCAINE BOLIVIAN PRESIDENT JAIME PAZ ZAMORA HAS LAUNCHED A CAMPAIGN TO PUBLICIZE THE COCA LEAF'S MEDICINAL VALUE AS WELL AS PROMOTE COMMERCIAL APPLICATIONS LIKE COCALEAF TEA WINE TOOTHPASTE AND COUGH SYRUP OF COURSE THAT CONTRADICTS HIS GOVERNMENT'S OFFICIAL POLICY OF DESTROYING COCA PLANTATIONS BUT KNOWING THAT GOAL IS OUT OF REACH THEY ARE TRYING TO HARVEST A LEGITIMATE PROFIT FROM THE INERADICABLE LEAF WE HAVE DECIDED TO DEFEND COCA WITH PRIDE AS PART OF OUR TRADITION AND CULTURE MR PAZ ZAMORA WHO SPORTS A COCALEAF PIN IN HIS LAPEL SAID IN A RECENT MAGAZINE INTERVIEW WE REFUSE TO ACCEPT THAT COCA BE UNDER HOUSE ARREST OF SORTS THAT IT BE LEGAL HERE BUT OUTLAWED ABROAD EITHER WE ARE MARTIANS OR WE'RE BEING DISCRIMINATED AGAINST BUT THERE IS A HITCH COCA MAY NOT BE COCAINE AS THE BOLIVIANS CLAIM BUT COCA DOES CONTAIN COCAINE THE CHEMICAL PRECURSOR THAT CAN BE TURNED INTO THE DRUG OF THE SAME NAME BY BEING TREATED WITH SEVERAL OTHER SUBSTANCES SO THE OUTSIDE WORLD SAYS COCA IS THE REAL THING AND WANTS NONE OF IT IN ANY FORM ALL THE PRODUCTS BOLIVIA WANTS TO EXPORT ARE ILLEGAL UNDER THE VIENNA CONVENTION WHICH LISTS INTERNATIONALLY RECOGNIZED NARCOTICS SAYS SANDRO CALVANI THE LOCAL HEAD OF THE UN INTERNATIONAL DRUG CONTROL PROGRAM THIS CAUSES SOMETHING OF A MARKETING PROBLEM WHEN BOLIVIA DISPATCHED EIGHT KILOS OF COCA LEAVES TO SEVILLE FOR THE WORLD'S FAIR SPANISH AUTHORITIES IMPOUNDED THE SHIPMENT WHEN MR PAZ ZAMORA TRIED TO GIVE BRAZILIAN PRESIDENT ITAMAR FRANCO HIS COCALEAF PIN RECENTLY HE GOT A MEEK ENDORSEMENT I THANK YOU MR FRANCO SAID BUT I WILL ONLY WEAR IT UNTIL THE BORDER TO AVOID DANGEROUS INTERPRETATIONS IN BRAZIL AND WHEN REYNALDO MOLINA A LEADING PUSHER OF COCA PRODUCTS WANTED TO GO TO THE US TO TOUT HIS PRODUCTS THE US CONSULATE HERE CANCELED HIS VISA THEY TOLD ME THE US SPENDS MILLIONS OF DOLLARS TRYING TO ERADICATE COCA WE'RE NOT GOING TO LET YOU GO THERE TO PROMOTE IT HE SAYS THIS MIFFS BOLIVIANS BECAUSE COCA IS AS MUCH A PART OF THEIR DAILY LIFE AS ALCOHOL IS ELSEWHERE IT'S PROBABLY THE ONLY COUNTRY IN THE WORLD WHERE COCAINE IN SOME FORM IS LEGAL AND IT'S NO BIG DEAL SAYS DR RONALD SIEGEL A PSYCHOPHARMACOLOGIST FROM UCLA'S SCHOOL OF MEDICINE WHO STUDIES COCA AND COCAINE BOLIVIA IS THE WORLD'S SECONDLARGEST COCA GROWER AFTER PERU AND THOUGH OFFICIALS ADMIT THAT THE DRUG TRADE WAS THE PRINCIPAL CONSUMER OF THE 80000 TONS HARVESTED IN 1992 THE LEAVES ARE FREELY SOLD FOR A RANGE OF OTHER USES IN ITS SECRET FORMULA COCACOLA USES DECOCAINIZED FLAVOR ESSENCE OF THE COCA LEAF ACCORDING TO ITS MANUFACTURER THERE IS COCALEAF TEA WHICH IS RECOMMENDED TO FIGHT SOROCHE OR ALTITUDE SICKNESS MINERS CHEW THE THUMBSIZED LEAVES TO PREVENT HUNGER DURING THEIR LONG WORKDAYS AMONG BOLIVIAN INDIANS SHARING COCA LEAF IS THE EQUIVALENT OF SHARING A DRINK COCA IS YOUR CALLING CARD SAYS DR VICTOR MORALES A PRACTITIONER OF TRADITIONAL MEDICINE YOU GIVE COCA LEAF TO GENERATE CONFIDENCE FORTUNE TELLERS READ THE FUTURE IN COCA LEAVES A SPA ON LAKE TITICACA USES COCA IN ITS WEIGHTLOSS PROGRAM DR WALTER ALVAREZ PRESIDENT OF BOLIVIA'S SOCIETY OF TRADITIONAL MEDICINE SAYS I ALMOST ALWAYS PRESCRIBE COCA FOR MIGRAINES HE RECOMMENDS A POULTICE WITH FIVE COCA LEAVES FOR MUSCULAR PAIN APPLY CHEWEDUP COCA LEAVES TO THE SORE SPOT AND FOR MOTHERS EXPERIENCING POSTDELIVERY PAIN DR ALVAREZ KNOWS JUST THE TRICK APPLY A PASTE MADE OF COCA ROSEMARY SALT AND URINE TO THE SOLES OF YOUR FEET AT NIGHT ANOTHER PERSON WHO IS CERTAIN OF COCA'S VIRTUES IS MR MOLINA WHO HEADS COINCOCA SHORT FOR COCA INDUSTRIALIZATION CO A COCHABAMBABASED FAMILY CONCERN THAT IS PIONEERING COCA PRODUCTS ITS SIX EMPLOYEES SPORT TSHIRTS READING COCA ISN'T COCAINE CLAIMS MR MOLINA THIS IS BETTER THAN DRUG TRAFFICKING BECAUSE IT'S HEALTHY AND IT'S LEGAL COINCOCA SPARES NO PRAISE FOR ITS PRIZE INGREDIENT IF MOTHERS STARTED TAKING COCA WHILE PREGNANT WE'D HAVE SUPERMEN CLAIMS ANA MARIA PAZ MR MOLINA'S SISTERINLAW AND COINCOCA'S SALES MANAGER ITS QUALITIES WARRANT A BROAD PRODUCT RANGE THERE'S COCA CHEWING GUM HELPS PREVENT CAVITIES COCAESTET AN APPETITECUTTING SYRUP FOR DIETING COCA WINE RECOMMENDED FOR SINGERS COCA LIQUEUR FOR ATHLETES WALKERS SINGERS WRITERS ARTISTS AND WORKERS OF ALL SOCIAL LEVELS CLAIMS THE LABEL COCA SYRUP GOOD FOR SEXUAL POTENCY COCABETES FIGHTS DIABETES COCA CREAM FOR MASSAGES AND COCA TONIC TO RAISE THE DEAD CLAIMS EGUIL PAZ LORA MR MOLINA'S FATHERINLAW BUT SALES ARE SLOW ABOUT 40000 A YEAR ACCORDING TO MR MOLINA WHO BELIEVES THERE IS A SINISTER PLOT AFOOT IF WE START EXPORTING WE'LL HURT MULTINATIONAL PHARMACEUTICAL AND FOOD COMPANIES HE SAYS THAT'S THEIR FEAR THEY DON'T WANT US TO GROW THERE MIGHT BE ANOTHER REASON LACK OF A DEFINITIVE SCIENTIFIC ASSESSMENT OF THESE PRODUCTS' EFFECTS AND THE POSSIBILITY THEY ARE ADDICTIVE THE CASE LAST YEAR OF AN ALEXANDRIA VA WOMAN WHO TESTED POSITIVE FOR COCAINE AFTER REGULARLY DRINKING COCA TEAA HABIT ACQUIRED FROM HER BOLIVIAN HUSBANDDREW CRIES OF OUTRAGE HERE MORE RECENTLY UCLA'S DR SIEGEL EARNED A REPUTATION AS A PARTYPOOPER HERE WHEN HE SAID THAT CHEWING COCA LEAF IS THE SAME THING AS SNORTING COCAINE EXCEPT THAT ONE ABSORBS FAR LESS BY CHEWING THAN BY SNORTING IN FACT DR SIEGEL SAYS IT'S UNLIKELY THE COCA PRODUCTS ARE ADDICTIVE BECAUSE THE CONTENT OF THE CHEMICAL IN QUESTION IS SO SMALL BUT COCA'S THERAPEUTIC QUALITIES HAVEN'T BEEN PROVED EITHER SO HE SUGGESTS THAT BOLIVIA ESTABLISH A COCA RESEARCH CENTER BEFORE TRYING TO BOOST COCA EXPORTS THE FIRST THING WE HAVE TO INVESTIGATE IS WHAT DO THESE PRODUCTS DO HE SAYS ARE THEY SITTING ON A GOLD MINE A 5000YEAROLD WONDER DRUG OR ARE THEY HIDING ANOTHER ABUSE PROBLEM IN THEIR SOCIETY THEY DON'T EVEN KNOW ABOUT IN THE MEANTIME YOU CAN COUNT ESTEBAN CASTRILLO OUT MR CASTRILLO IS THE INVENTOR OF CODENT HE IS CONVINCED THAT THERE IS TOO MUCH CONFUSION SURROUNDING COCA PRODUCTS SO HE PLANS TO STICK TO MORE CONVENTIONAL ONES I'LL NEVER MAKE ANOTHER PRODUCT WITH COCA AS LONG AS THESE DOUBTS CONTINUE HE SAYS IT'S TOO MUCH TROUBLE 9306020079 930602 TECHNOLOGY BRIEF SCIMED LIFE SYSTEMS INC FIRM COMPLETES PURCHASE OF AMERICAN HOME'S UNIT SCIMED LIFE SYSTEMS INC MINNEAPOLIS SAID IT COMPLETED THE PURCHASE OF CERTAIN ASSETS OF AMERICAN HOME PRODUCTS CORP'S SHERWOOD MEDICAL SA UNIT BASED IN PETIT RECHAIN BELGIUM TERMS WEREN'T DISCLOSED THE MAKER OF DISPOSABLE MEDICAL DEVICES SAID THAT SINCE JUNE 1 1992 WHEN IT ANNOUNCED THAT IT AGREED TO PURCHASE THIS FACILITY SHERWOOD HAS PROVIDED CONTRACT MANUFACTURING SERVICES FOR SCIMED SCIMED WILL NOW PROVIDE CONTRACT MANUFACTURING SERVICES FOR SHERWOOD UNTIL MAY 1995 SHERWOOD MAKES MEDICAL PRODUCTS AND DEVICES SCIMED SAID IT IS CURRENTLY MANUFACTURING AND SHIPPING MOST OF ITS INTERNATIONAL EXPRESS AND RALLY SINGLE OPERATOR EXCHANGE CATHETER ORDERS FROM PETIT RECHAIN AND HAS PLANS TO BEGIN EUROPEAN PRODUCTION OF SOME OF ITS OVERTHEWIRE CATHETER PRODUCTS 9306020078 930602 PRICING HEALTH CARE IN CALIFORNIA MERGER MANIA AFFLICTS HOSPITALS BY SIDNEY MARCHASIN HISTORICALLY MOST MEDICAL CARE IN THE US HAS BEEN PROVIDED BY INDIVIDUAL PHYSICIANS AND FREESTANDING INDEPENDENT HOSPITALS BUT THAT'S CHANGING ANTICIPATING HEALTHCARE REFORMS FROM WASHINGTON DOZENS OF CALIFORNIA HOSPITALS AND THEIR MEDICAL STAFFS ARE POSITIONING THEMSELVES TO SURVIVE BY FORMING LARGE COOPERATIVES OR NETWORKS THAT WILL DEAL DIRECTLY WITH INSURERS ON BEHALF OF DOCTORS AND HOSPITALS THE NETWORKS WILL BARGAIN WITH HEALTH PLANS TO PROVIDE HEALTH SERVICES TO PLAN MEMBERS IN EXCHANGE FOR A SET ANNUAL FEE PAID IN ADVANCE THE LOS ANGELES AREA IS MUCH FURTHER ALONG IN THIS TRANSFORMATION THAN MOST OF THE COUNTRY WITH ALMOST HALF ITS POPULATION IN HEALTH MAINTENANCE ORGANIZATIONS OR HMOS IT PROVIDES A PREVIEW OF HOW HEALTH CARE MIGHT BE DELIVERED NATIONALLY UNDER MANAGEDCOMPETITION A SCENARIO THAT HAS RECEIVED LOTS OF ATTENTION FROM HILLARY CLINTON'S TASK FORCE A HANDFUL OF GIANT SOUTHERN CALIFORNIA NETWORKS HAVE SIGNED UP DOCTORS AND HOSPITALS IN EXCLUSIVE ARRANGEMENTS WHILE OTHER HOSPITALS MEDICAL GROUPS AND SOLO PHYSICIANS ARE DESPERATELY JOINING TOGETHER TO SURVIVE THEIR ASSAULT DOMINANT COOPERATIVES IN THE LOS ANGELES MARKET INCLUDE MULLIKIN MEDICAL CENTERS FRIENDLY HILLS HEALTHCARE FOUNDATION CALIFORNIA PRIMARY PHYSICIANS UNIHEALTH AMERICA AND PACIFIC PHYSICIAN SERVICES SOME PREDICT THAT THE MAJORITY OF HEALTH CARE IN THE GREATER LOS ANGELES AREA A REGION OF 13 MILLION PEOPLE WILL SOON BE DELIVERED BY 10 OR FEWER GIANT MEDICAL NETWORKS FEARING THE EMERGENCE OF MEGASIZED MEDICAL GROUPS AND SEEING LITTLE FUTURE FOR INDEPENDENT HOSPITALS AND SMALL FEEFORSERVICE PRACTICES PHYSICIANS AND HOSPITALS IN THE SAN FRANCISCO BAY AREA ARE ALSO SCURRYING TO FORM INTEGRATED NETWORKS THIS WRITER'S HOSPITAL HAS BEEN APPROACHED BY SIX SEPARATE GROUPS WITH PROPOSALS TO JOIN INTEGRATED SYSTEMS THE CONCEPT OF A COMPETITIVE HEALTHCARE SYSTEM WITH RIVAL SUPERMEDS IS BOTH COMPLEX AND UNTESTED IN REALITY THE EFFECTS OF PRICE COMPETITION ON THE QUALITY AVAILABILITY AND USE OF HEALTH SERVICES ARE UNKNOWN AND WILL BECOME APPARENT ONLY SEVERAL YEARS FROM NOW THEORY HOLDS THAT THE EMERGING SUPERMEDS WILL BE ABLE TO SPREAD THE OPERATING COSTS OF VARIOUS MANAGEMENT SYSTEMS OVER A LARGE NUMBER OF HOSPITALS RESULTING IN LOWER COSTS FOR DATA PROCESSING ACCOUNTING EQUIPMENT PURCHASING PHYSICIAN AND NURSE RECRUITMENT LIABILITY INSURANCE AND THE CONSTRUCTION OF NEEDED FACILITIES THESE ECONOMIES OF SCALE THEORETICALLY SHOULD BE REFLECTED IN REDUCED OVERALL COSTS FOR MEDICAL CARE HOWEVER THERE ARE COUNTERBALANCING COSTS INCURRED BY LARGE NETWORKS SUCH AS THOSE OF MAINTAINING CORPORATE HEADQUARTERS AND STAFF MARKETING AND SALES NEW ACQUISITIONS ADVERTISING AND ALL THE OTHER THINGS BIG CORPORATIONS MUST DO TO KEEP OR EXPAND THEIR SHARE OF A COMPETITIVE MARKET ESPECIALLY VISIBLE IN THE EMERGING SUPERMEDS ARE THE TRAPPINGS OF BIG BUSINESS THERE ARE THE SKILLED CORPORATION MANAGERS WHO SEE THE OPPORTUNITY TO SIPHON OFF BIG BUCKS IN AN ENTERPRISE THAT NOW CONSUMES ALMOST 14 OF GROSS NATIONAL PRODUCT NOT SURPRISINGLY WILY ENTREPRENEURS HAVE BECOME AVID SPECULATORS IN THE HEALTHCARE INDUSTRY AND ARE IMPLICATED IN ACQUIRING HOSPITALS AND PHYSICIAN GROUPS AND OPERATING THESE ENTITIES FOR THEIR OWN PECUNIARY INTEREST THEY HAVE DISCOVERED THAT MEDICAL CARE IS A MAJOR GROWTH INDUSTRY WITH A STEADILY GROWING CLIENTELE WHOSE OPERATING REVENUES AND GROWING MARKETS ARE IN GREAT PART GUARANTEED BY MEDICARE MEDICAID AND BY EMPLOYERS WHO PURCHASE HEALTH INSURANCE FOR THEIR EMPLOYEES THIS TRANSITION OF THE AMERICAN HEALTHCARE SYSTEM ALONG COMPETITIVE LINES MAY SEEM LOWKEY IN TONE BUT IT'S POTENTIALLY EXPLOSIVE IN ITS IMPLICATIONS FOR MEDICAL CONSUMERS PERHAPS IT'S TIME TO PAUSE TO CONSIDER WHAT THE CHARACTER OF OUR HEALTHCARE SYSTEM WOULD BE LIKE IF A FEW GIANT CORPORATIONS OWNED OR DOMINATED MOST OF OUR HEALTHCARE INSTITUTIONS TODAY MOST INDEPENDENT HOSPITALS ARE DIRECTLY RESPONSIVE AND GIVE THEIR HIGHEST PRIORITY TO SERVING THE HEALTHCARE NEEDS OF THEIR LOCAL COMMUNITIES WILL THE BIG BUSINESS BARONS WHO PREACH A COLLECTIVE CORPORATE CATECHISM AND WHOSE PRINCIPAL CONCERN IS FOR THE BOTTOM LINE HAVE THE SAME PRIORITIES THE THRUST MAY INEVITABLY BE TO FORCE PHYSICIANS AWAY FROM DOING EVERYTHING POSSIBLE TOWARD DOING ONLY WHAT IS NOTICEABLE BEHAVIOR THAT IN THE PAST SEEMED UNETHICAL MAY SOON BE CONSTRUED AS SIMPLY COMPLYING WITH THE SPIRIT OF GOVERNMENT HEALTHCARE REFORM IN THIS SETTING THERE ARE BOUND TO BE TENSIONS BETWEEN WHAT IS IN THE BEST INTEREST OF THE PATIENTS AND WHAT IS IN THE FINANCIAL INTEREST OF THE SUPERMED MANY GROUPS AND AGENCIES ARE NOW WATCHING OVER THE COST OF HEALTH CARE BUT WHAT WE DESPERATELY NEED IS SOMEONE TO WATCH OVER THE WELFARE OF THE SICK PATIENT THE FAMILY DOCTOR HAS ALWAYS SERVED THAT ROLE BUT PHYSICIANS ENTERING INTO GIANT NETWORKS LOSE THEIR AUTONOMY AND THEIR POWER ONE OF THEIR PRIMARY OBLIGATIONS IS TO SATISFY CORPORATE HEADQUARTERS AS BRANT MITTLER NOTED ON THIS PAGE IN MARCH THE REAL REVOLUTION IN MEDICINE WILL COME FROM THE DEVELOPMENT OF OBSERVATIONAL DATABASES THAT TRACK PATIENT OUTCOMES AND SATISFACTION OVER LONG PERIODS UNFORTUNATELY OUTCOMES DATA AND STANDARDS OF CARE HAVE NOT BEEN COMPILED FOR MOST MEDICAL DISORDERS AND THEIR ASSEMBLY WILL TAKE YEARS TO ACCOMPLISH IN THE INTERIM COMPETITIVE CORPORATIONS MAY CORRUPT MEDICAL JUDGMENT AND DISTORT THE HEALTHCARE SYSTEM TO MEET THEIR OWN ENTREPRENEURIAL NEEDS REDUCTIONS IN EXPENDITURES THAT RESULT IN A LOWERING OF THE QUALITY AND ACCESS TO CARE SHOULD NOT BE CONFUSED WITH COST CONTAINMENT COMPETITION DOES NOT ADDRESS THE MAJOR DRIVING FORCE BEHIND RISING MEDICAL BILLS AN AGING POPULATION THAT DESIRES TO DRAW THE BENEFITS INHERENT IN EXPENSIVE AND EXOTIC LIFESAVING MEDICAL TECHNOLOGY FOR MOST PATIENTS A COMPETITIVE HEALTHCARE SYSTEM WILL MEAN A SHRINKAGE OF MEDICAL SERVICES BUT BY HOW MUCH THE TIME IS NOW RIPE FOR A REALISTIC REAPPRAISAL OF THIS NATION'S HEALTHCARE NEEDS THE PROVISION OF ADEQUATE MEDICAL CARE FOR OUR COUNTRY'S CITIZENS IS A POLITICAL ISSUE IT IS NOT WAS NOT AND NEVER WILL BE THE EXCLUSIVE PROVINCE OF THE MEDICAL PROFESSION RATIONAL REFORM WILL REQUIRE ANSWERS TO HARD QUESTIONS HOW MUCH RELIEF LONGEVITY AND COMFORT ARE WE READY TO PROVIDE TO PATIENTS HOW MUCH ARE WE PREPARED TO PAY COST ACCESS AND QUALITY ARE ALL INTERTWINED AND WE CANNOT ADDRESS ONE OF THESE CONCERNS WITHOUT ADDRESSING THEM ALL IN THE NEXT FEW YEARS NAKED FISCAL PRIORITIES MAY HEAVILY INFLUENCE OUR HEALTH DELIVERY SYSTEM AND OUR STRATEGIES AND TECHNIQUES FOR DIAGNOSING AND TREATING ILLNESS IT MAY WELL BE A TIME WITHOUT PRECEDENT A TIME THAT WILL REQUIRE CONSIDERABLE SOULSEARCHING AND PHILOSOPHICAL DISCUSSION BUT IT WILL BE A SAD IRONY IF SCHEMES DESIGNED OSTENSIBLY TO PROTECT PATIENTS FROM SOARING MEDICAL COSTS DEPRIVE MANY OF THEM OF THE POTENTIAL BENEFITS OF NEEDED MEDICAL CARE DR MARCHASIN IS A MEMBER OF THE BOARD OF SEQUOIA HOSPITAL REDWOOD CITY CALIF SEE RELATED STORY AND MANAGED COMPETITION WORKS WSJ JUNE 2 1993 9306020077 930602 BUSINESS BRIEF PHILLIPSVAN HEUSEN CORP APPAREL MAKER REPORTS LOSS FOR ITS FISCAL FIRST QUARTER PHILLIPSVAN HEUSEN CORP REPORTED A NET LOSS FOR ITS FISCAL FIRST QUARTER REFLECTING A TRADITIONALLY SLOW SPRING SELLING SEASON THE IMPACT OF BAD WEATHER AND HIGHER INTEREST EXPENSES THE APPAREL AND FOOTWEAR MAKER REPORTED THAT ITS LOSS WIDENED TO 22 MILLION FOR THE QUARTER ENDED MAY 2 FROM A YEAREARLIER LOSS OF 123000 THE LATEST QUARTER'S PERSHARE LOSS WAS EIGHT CENTS WHEN THE COMPANY HAD 26 MILLION SHARES OUTSTANDING A YEAR EARLIER THE LOSS WAS 12 CENTS WHEN THE COMPANY PAID 2 MILLION IN PREFERRED DIVIDENDS AND HAD 188 MILLION SHARES OUTSTANDING YEARAGO FIGURES INCLUDED A NET CHARGE OF ABOUT 13 MILLION TO CLOSE THE COMPANY'S FOOTWEAR CATALOG BUSINESS THE CURRENT QUARTER INCLUDES A CHARGE IN ACCOUNTING FOR INVENTORY ON A LIFO BASIS OF 15 MILLION COMPARED WITH 19 MILLION LAST YEAR SALES FOR THE QUARTER INCREASED 7 TO 2219 MILLION FROM 2083 MILLION THE YEAR EARLIER THE COMPANY SAID THAT BUSINESS IN THE FIRST WEEKS OF THE SECOND QUARTER HAS IMPROVED NOTICEABLY 9306020076 930602 BUSINESS BRIEF LCI INTERNATIONAL INC FCC GIVES APPROVAL TO SELL SERVICES TO SIXTEEN NATIONS LCI INTERNATIONAL INC SAID IT RECEIVED APPROVAL FROM THE FEDERAL COMMUNICATIONS COMMISSION TO SELL INTERNATIONAL PRIVATELINE TELECOMMUNICATION SERVICES TO 16 FOREIGN COUNTRIES THE DUBLIN OHIO TELECOMMUNICATIONS CONCERN SAID THE AUTHORIZATION PERMITS IT TO EXPAND THESE SERVICES TO CANADA MEXICO BRAZIL THE UNITED KINGDOM BELGIUM FRANCE GERMANY IRELAND ITALY SPAIN SWITZERLAND THE NETHERLANDS AUSTRALIA HONG KONG SINGAPORE AND JAPAN LCI SAID ITS ABILITY TO OFFER PRIVATELINE SERVICES IN CANADA WAS GRANTED PROVISIONALLY PENDING FCC REVIEW OF A PETITION FILED BY AMERICAN TELEPHONE & TELEGRAPH CO A SPOKESMAN FOR LCI SAID THE COMPANY BELIEVES THAT IT IS UNLIKELY THAT THE REGULATORY AGENCY WILL REVERSE ITS DECISION ON THE AUTHORIZATION THE COMPANY SAID A PRIOR OBJECTION BY AT&T RESULTED IN DISMISSAL BY THE AGENCY LCI INTERNATIONAL PROVIDES VOICE DATA AND VIDEO TRANSMISSION SERVICES FOR BUSINESS AND RESIDENTIAL CUSTOMERS 9306020075 930602 FINANCING BUSINESS RE CAPITAL CORP RE CAPITAL CORP STAMFORD CONN SAID IT FILED PLANS WITH THE SECURITIES AND EXCHANGE COMMISSION TO OFFER 60 MILLION OF CONVERTIBLE DEBENTURES THE REINSURER SAID IT ALSO LOWERED THE INTEREST RATE AND CONVERSION PRICE ON A 10 MILLION CONVERTIBLE DEBENTURE HELD BY JOHN DEERE INSURANCE CO A UNIT OF DEERE & CO AND SUSPENDED INDEFINITELY A STOCK REPURCHASE PROGRAM BEGUN IN JANUARY 1991 RE CAPITAL SAID IT PLANS TO USE PROCEEDS OF THE DEBENTURE OFFERING TO MAKE A CAPITAL CONTRIBUTION OF AT LEAST 36 MILLION TO ITS PRINCIPAL OPERATING UNIT RE CAPITAL REINSURANCE CORP REPAY ALL 15 MILLION OUTSTANDING UNDER ITS EXISTING BANK FACILITY AND TERMINATE THE FACILITY AND RETAIN ABOUT 7 MILLION FOR GENERAL CORPORATE PURPOSES THE DEBENTURES MATURE IN THE YEAR 2000 9306020074 930602 BUSINESS BRIEF MICHAEL BAKER CORP UNIT WINS CONTRACT TO ASSIST IN BUILDING OF RUSSIA PIPELINE MICHAEL BAKER CORP PITTSBURGH SAID ITS MICHAEL BAKER JR INC UNIT WON AN OPENENDED CONTRACT TO PROVIDE TECHNICAL ASSISTANCE FOR CONSTRUCTION OF A 40MILE ABOVEGROUND OIL PIPELINE BEING BUILT IN RUSSIA THE ENGINEERING CONSTRUCTION AND OPERATIONS AND MAINTENANCE SERVICES CONCERN SAID THE PROJECT IS PART OF THE ARDALIN OIL FIELD DEVELOPMENT OF THE POLAR LIGHTS JOINT VENTURE OF CONOCO INC A UNIT OF DUPONT WILMINGTON DEL AND ARKHANGELSKGEOLOGIA A STATEOWNED CONCERN BASED IN ARKHANGELSK RUSSIA MICHAEL BAKER SAID IT IS PROVIDING SERVICES RANGING FROM CONCEPTUAL DESIGN TO CONSTRUCTION ASSISTANCE THE COMPANY SAID THE PIPELINE WHICH IS SCHEDULED TO BEGIN OPERATION IN MID1994 IS LOCATED IN THE TIMAN PECHORA BASIN OIL FIELD REGION ABOUT 700 MILES NORTHEAST OF MOSCOW JUST ABOVE THE ARCTIC CIRCLE 9306020073 930602 RAYTHEON CO AGREES TO BUY AIRCRAFT MAKER BRITISH AEROSPACE'S BUSINESS PLANE UNIT TO BE SOLD FOR ABOUT 391 MILLION BY DAVID STIPP AND BRIAN COLEMAN STAFF REPORTERS OF THE WALL STREET JOURNAL RAYTHEON CO AS EXPECTED AGREED TO BUY BRITISH AEROSPACE PLC'S BUSINESS JET UNIT FOR ABOUT 391 MILLION THE PLANNED PURCHASE WOULD HELP RAYTHEON MOVE BEYOND ITS CORE DEFENSE BUSINESS AND ENABLE BRITISH AEROSPACE TO REDUCE DEBT AND BETTER FOCUS ON ITS PRINCIPAL BUSINESSES INCLUDING AUTOMOBILES AND DEFENSE THE PURCHASE WOULD NEARLY DOUBLE RAYTHEON'S CORPORATEJET MARKET SHARE AND INCREASE ITS OVERALL AIRCRAFT SALES TO ABOUT 17 BILLION FROM 13 BILLION ANNUALLY RAYTHEON OWNS BEECH AIRCRAFT A WICHITA KAN MAKER OF TURBOPROP AND JET AIRCRAFT WHICH HAS ABOUT 12 OF THE MARKET FOR LIGHT TO MEDIUM JETS THE INDUSTRY LEADER FOR BUSINESS JETS TEXTRON INC'S CESSNA AIRCRAFT UNIT HAS AN ESTIMATED 60 MARKET SHARE MAX BLECK RAYTHEON'S PRESIDENT SAID THAT ALTHOUGH THE SMALLPLANE MARKET HAS BEEN IN GENERAL MALAISE RAYTHEON IS POSITIONING ITSELF FOR AN INDUSTRY TURNAROUND BY BUYING WHEN ACQUISITION PRICES ARE LOW MR BLECK REITERATED RAYTHEON'S GOAL OF BOOSTING TO 50 FROM ABOUT 30 ITS PORTION OF OPERATING PROFIT THAT IS DERIVED FROM NONDEFENSE BUSINESS HE SAID RAYTHEON REMAINS INTERESTED IN POSSIBLE ACQUISITIONS IN THE ENGINEERING CONSTRUCTION AND APPLIANCE AREAS IN LATE TRADING ON THE NEW YORK STOCK EXCHANGE RAYTHEON WAS QUOTED YESTERDAY AT 55625 A SHARE UP 75 CENTS RAYTHEON BASED IN LEXINGTON MASS SELLS MISSILES AND OTHER DEFENSERELATED PRODUCTS HOUSEHOLD APPLIANCES AND OWNS ENERGY AND ENVIRONMENTAL BUSINESSES BRITISH AEROSPACE'S CORPORATE JETS UNIT EMPLOYS ABOUT 1300 PEOPLE AND POSTED OPERATING PROFIT OF 94 MILLION IN 1992 UNDER THE AGREEMENT RAYTHEON WOULD ACQUIRE THE UNIT'S FACILITIES IN CHESTER ENGLAND AND NEAR WASHINGTON DC AS WELL AS ARKANSAS AEROSPACE INC A UNIT THAT CONFIGURES CORPORATE JETS TO INDIVIDUAL CUSTOMER SPECIFICATIONS BRITISH AEROSPACE HAD SOUGHT FOR MUCH OF LAST YEAR TO SELL ITS CORPORATE JET BUSINESS BEFORE ABRUPTLY ANNOUNCING LAST FALL THAT IT WOULD HOLD ONTO IT BUT THE UK'S LARGEST ENGINEERING CONCERN SWITCHED ITS MIND AGAIN AFTER RECEIVING A BETTER OFFER A SPOKESMAN SAID THE SALE OF CORPORATE JETS IS AN IMPORTANT MILESTONE IN THE STRATEGY OF BRITISH AEROSPACE TO FOCUS ON ITS PRINCIPAL BUSINESS AREAS SAID BRITISH AEROSPACE CHAIRMAN JOHN CAHILL THE PROCEEDS RAISED WILL SIGNIFICANTLY STRENGTHEN THE BALANCE SHEET AND CASH POSITION OF THE GROUP THE AGREEMENT ALSO CALLS FOR RAYTHEON TO BUY AIRFRAMES FROM BRITISH AEROSPACE FOR THREE YEARS A COMMITMENT BY RAYTHEON THAT HELPED TO SEAL THE AGREEMENT SAID A BRITISH AEROSPACE SPOKESMAN THE PROVISION WILL PROVIDE A CONTINUED WORKLOAD FOR BRITISH AEROSPACE'S AIRBUS DIVISION IN CHESTER BRITISH AEROSPACE ADDED IN A NEWS RELEASE IN 1992 THE AIRBUS DIVISION SOLD ABOUT 47 MILLION OF AIRFRAME KITS TO CORPORATE JETS RAYTHEON SAID THE BRITISH AEROSPACE UNIT'S BAE 800 AND BAE 1000 MEDIUMSIZE BUSINESS JETS WILL COMPLEMENT ITS BEECHCRAFT LINE REPRESENTING A STEPUP PRODUCT FOR CUSTOMERS NEEDING LARGER AIRCRAFT THAN BEECH SELLS RAYTHEON SAID THAT AFTER COMPLETING THE PURCHASE IT INITIALLY WILL OPERATE CORPORATE JETS AS A SEPARATE COMPANY RATHER THAN CONSOLIDATING IT INTO BEECH BUT THE COMPANY ADDED THAT IT PLANS A THOROUGH STUDY TO DETERMINE HOW TO BEST INTEGRATE CORPORATE JETS WITH ITS EXISTING AIRCRAFT BUSINESS 9306020072 930602 MCI AND BT SET A COUNTERSTRIKE AGAINST AT&T FIRMS ARE BELIEVED FORMING AN ALLIANCE TO INCLUDE BIG STAKE IN MCI FOR BT BY JOHN J KELLER AND MARY LU CARNEVALE STAFF REPORTERS OF THE WALL STREET JOURNAL MCI COMMUNICATIONS CORP AND BRITISH TELECOMMUNICATIONS PLC AGREED TO JOIN FORCES IN WHAT WOULD BE A MAJOR COUNTERSTRIKE AT AMERICAN TELEPHONE & TELEGRAPH CO ACCORDING TO INDIVIDUALS FAMILIAR WITH THE COMPANIES' PLANS THE INDIVIDUALS SAID THE ALLIANCE BETWEEN THE TWO TELECOMMUNICATIONS COMPANIES IS LIKELY TO INCLUDE A SIGNIFICANT INVESTMENT BY BT IN MCI THE NATION'S SECONDLARGEST LONGDISTANCE COMMUNICATIONS CARRIER AFTER AT&T BT IS THE UNITED KINGDOM'S MAJOR PHONE COMPANY A BTMCI ALLIANCE IS CERTAIN TO ACCELERATE THE INCREASINGLY BITTER GLOBAL RIVALRY BETWEEN AT&T AND BT EACH IS RUSHING TO PROVIDE SEAMLESS INTERNATIONAL COMMUNICATIONS SERVICES TO THEIR MULTINATIONAL CORPORATE CUSTOMERS THESE CUSTOMERS ARE DEMANDING THAT THE CARRIERS EXPAND WITH THEM AS THEY OPEN FACILITIES IN NEW COUNTRIES AT A RECENT NEWS BRIEFING IN WASHINGTON JBK RICKFORD BT'S DIRECTOR OF GOVERNMENT RELATIONS UNDERSCORED THE ACRIMONY BETWEEN HIS COMPANY AND AT&T AT&T HAS TOLD US THE RIGHT WAY TO DEAL WITH SNAKES IS TO STOMP ON THEM WHEN THEY ARE YOUNG HE SAID LAST WEEK AT&T SAID IT WOULD JOIN WITH NUMEROUS INTERNATIONAL CARRIERS IN ASIA AND POSSIBLY EUROPE TO OPERATE A GLOBAL SERVICE IF SUCCESSFUL SUCH A NETWORK WOULD UNDOUBTEDLY DRAW AWAY SOME BT CUSTOMERS IN BRITAIN MCI DECLINED TO COMMENT AND BT OFFICIALS COULDN'T BE REACHED MCI HAS SCHEDULED A NEWS CONFERENCE FOR THIS MORNING IN WASHINGTON HOWEVER A SPOKESMAN AN MCI VETERAN SAID THE COMPANY WILL MAKE A MAJOR ANNOUNCEMENT THE BIGGEST THING TO HAPPEN TO THIS COMPANY SINCE I'VE BEEN HERE US REGULATIONS LIMIT FOREIGN OWNERS TO A 25 STAKE IN A US CARRIER AT MCI'S CLOSING PRICE YESTERDAY OF 5275 SUCH AN INVESTMENT WOULD COST BT 347 BILLION BASED ON MCI'S 2634 MILLION SHARES OUTSTANDING A BIG CHUNK OF THAT MONEY WILL COME FROM MCCAW CELLULAR COMMUNICATIONS INC WHEN AT&T PAYS 38 BILLION FOR A 33 STAKE IN THE CELLULAR COMPANY MCCAW PLANS TO BUY BACK BT'S 22 STAKE IN MCCAW WHEN THE DEAL CLOSES NOW AT&T'S PAYMENT MAY BE HELPING TO FUND MCI'S AND BT'S GLOBAL EXPANSION MCI HAS BIG AMBITIONS BUT APPARENTLY NOT ENOUGH RESOURCES TO MEET ITS GOALS MCI PRESIDENT DANIEL AKERSON TOLD THE WALL STREET JOURNAL IN MARCH THAT THE COMPANY COULDN'T AFFORD TO MEET AT&T HEAD ON IN ALL MARKETS AND THAT THE FEISTY CARRIER WOULD SEEK TO POSSIBLY SELL A MAJOR STAKE IN ITSELF TO A COMMUNICATIONS CARRIER MCI DOESN'T HAVE THE FINANCIAL WHEREWITHAL TO BE A GLOBAL COMPETITOR MR AKERSON SAID RATHER THAN GO IT ALONE MCI CHAIRMAN BERT C ROBERTS JR HAS BEEN BUSILY FORMING ALLIANCES WITH FOREIGN CARRIERS MCI RECENTLY SAID IT WOULD LINK ITS NETWORK WITH STENTOR THE CONSORTIUM OWNED BY CANADA'S MAJOR PHONE COMPANIES MCI HAS ALSO BEEN ALIGNING ITSELF WITH US CABLE TELEVISION COMPANIES THE MOST RECENT EFFORT BEING A TEST OF DELIVERING PHONE CALLS OVER TIME WARNER INC FACILITIES IN NEW YORK CITY BT WHICH HAS DEEP POCKETS HAS AGGRESSIVELY EXPANDED ITS BUSINESS IN THE US BT'S NORTH AMERICAN SUBSIDIARY HAS ASKED FEDERAL REGULATORS FOR AUTHORITY TO SELL INTERNATIONAL PRIVATE LINES BETWEEN THE US AND OTHER COUNTRIES SO THAT IT COULD OFFER INTERNATIONAL NETWORK SERVICES TO MULTINATIONALS BT'S REQUEST DREW AN IMMEDIATE PROTEST FROM AT&T AND A SUBSEQUENT REQUEST FROM AT&T TO THE BRITISH GOVERNMENT TO OPEN ITS MARKET BT ALSO SET UP SYNCORDIA A COMPANY THAT HOPES TO ATTRACT BUSINESS CUSTOMERS AWAY FROM AT&T'S SERVICE AND BT OWNS FORMER THE TYMNET INTERNATIONAL DATA TRANSMISSION SERVICE WHICH MOST LIKELY WILL NOW BE COMBINED IN SOME WAY WITH INFONET THE DATA SERVICE OWNED BY MCI AND OTHER EUROPEAN CARRIERS 9306020071 930602 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN EUROPEAN COMMUNITY EMPLOYMENT MINISTERS AGREED ON LEGISLATION SETTING A MAXIMUM AVERAGE WORKWEEK OF 48 HOURS BRITAIN VOWED A LEGAL CHALLENGE THE ACCORD ESTABLISHES LABOR RULES AS PART OF EC SOCIAL POLICY IT ALSO SETS THREEWEEK MINIMUM PAID VACATIONS FOR THREE YEARS AFTER THE RULE TAKES EFFECT AND FOUR WEEKS THEREAFTER SPECIFIES REST PERIODS AND GENERALLY LIMITS NIGHT SHIFTS TO EIGHT HOURS THE WORKWEEK RULE ALLOWS EXEMPTIONS FOR BRITAIN AND THE EC TRANSPORTATION FISHING AND OILRIG SECTORS WIDER EXEMPTIONS APPLY TO MANAGERS THE SELFEMPLOYED AND FAMILY BUSINESSES THE MAIN PROVISIONS ALREADY ARE IN LAWS OR COLLECTIVE BARGAINING AGREEMENTS IN EC NATIONS EXCEPT BRITAIN STILL ALL MEMBERS BUT BELGIUM SPAIN AND FRANCE WOULD HAVE TO CHANGE LAWS ON JOB PRACTICES WITHIN THREE YEARS OF THE MEASURE'S FINAL ADOPTION EXPECTED LATE THIS YEAR BRITAIN OPPOSES EC JURISDICTION OVER JOB RULES ON HEALTH AND SAFETY UNICE THE EUROPEAN EMPLOYERS GROUP SAYS THE WORKWEEK RULE WILL HURT COMPANIES' FLEXIBILITY AND MAY INCREASE THEIR COSTS MEXICAN PRESIDENT CARLOS SALINAS DE GORTARI SENT TO CONGRESS AN INITIATIVE TO STREAMLINE SETTLEMENTS OF INTERNATIONAL COMMERCIAL DISPUTES LEGISLATIVE PASSAGE IS CERTAIN IN ANOTHER REFORM TO HELP SMOOTH PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT THE PROPOSED REVISIONS OF MEXICO'S 1887 COMMERCIAL CODE AND THE 1931 CODE OF CIVIL PROCEDURE WOULD SET UP A FRAMEWORK FOR ARBITRATION OUTSIDE NATIONAL COURT SYSTEMS INCORPORATING THE 1985 UNITED NATIONS' MODEL LAW ON INTERNATIONAL COMMERCIAL ARBITRATION AND PROVIDING FOR ENFORCEMENT OF AWARDS GRANTED INDIA AND THE US NARROWED THEIR DIFFERENCES OVER ISSUES SUCH AS PATENTS AND TRADE IN SERVICES AGRICULTURE AND TEXTILES SAID AV GANESAN THE TOP CIVIL SERVANT IN INDIA'S COMMERCE MINISTRY AFTER TALKS IN WASHINGTON MR GANESAN SAID HE BELIEVES THE CLINTON ADMINISTRATION IS WILLING TO SORT OUT PROBLEMS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE RATHER THAN PURSUE THEM BILATERALLY UNDER US TRADE LAW FOLLOWING HIS VISIT THE US WITHDREW ITS THREAT OF PUNITIVE ACTION AGAINST INDIA FOR ITS ALLEGEDLY INADEQUATE PATENT PROTECTION FOR US COMPANIES POSTAL GUIDELINES THAT THE EUROPEAN COMMUNITY COMMISSION MAY ADOPT TODAY RECOMMEND LEGISLATION TO IDENTIFY CORE POSTAL SECTORS AND SET QUALITY STANDARDS THE DOCUMENT DRAFTED IN CONSULTATION WITH POSTAL AGENCIES BUSINESS AND CONSUMERS IS IN LINE WITH A MAY 1992 EC POLICY THAT WOULD RESERVE BASIC AREAS SUCH AS LETTERS FOR NATIONAL MONOPOLIES BUT OPEN TO COMPETITION PREMIUM DELIVERY SERVICES SUCH AS EXPRESS MAIL PARCELS MAGAZINES AND NEWSPAPERS EC POSTAL SERVICES ARE A 74 BILLION ANNUAL BUSINESS THE PHILIPPINE CONGRESS PASSED A BILL ALLOWING FOREIGNERS LEASES AS LONG AS 75 YEARS ON PRIVATE LAND FOR TOURISM AND INDUSTRIAL INVESTMENT THE MEASURE AIMED AT ENCOURAGING DEVELOPMENT WENT TO THE PRESIDENT TO BE SIGNED INTO LAW CURRENT LAW ALLOWS LEASES OF 25 YEARS RENEWABLE FOR 25 YEARS THE NEW LEGISLATION PROVIDES FOR 50YEAR LEASES RENEWABLE ONCE FOR 25 YEARS FOR TOURISM PROJECTS FOREIGNERS MUST INVEST AT LEAST 5 MILLION THE SHENZHEN STOCK EXCHANGE IN CHINA ORDERED ENHANCED DISCLOSURE OF INFORMATION BY LISTED COMPANIES THAT ISSUE SHARES RESERVED FOR FOREIGN INVESTORS THE NEW MEASURES GOVERN DISCLOSURE DOMESTICALLY AND ABROAD OF FINANCIAL REPORTS IN LINE WITH INTERNATIONAL ACCOUNTING STANDARDS DIVIDEND DISTRIBUTIONS AND SHARE PLACEMENTS AND SHAREHOLDERS' MEETINGS THE ECONOMIC FORUM FOR THE WORLD'S 24 LEADING INDUSTRIAL COUNTRIES LOWERED ITS 1993 FORECASTS MADE IN DECEMBER FOR WESTERN EUROPE AND JAPAN TO REFLECT THE QUICK SLOWING IN THEIR ECONOMIES THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT SEES MEMBERS' 1993 GROWTH SHRINKING TO AN INFLATIONADJUSTED 12 FROM 15 LAST YEAR THE OECD HAD EXPECTED WESTERN EUROPE'S ECONOMY TO EXPAND 12 BUT NOW PREDICTS A 03 CONTRACTION BEFORE A RECOVERY NEXT YEAR WITH A 18 GROWTH RATE EUROPE'S UNEMPLOYMENT RATE COULD HIT 114 THIS YEAR THE OECD SAID REVISING ITS FORECAST OF 106 AS INDUSTRY GETS LEANER AND DUMPS MORE WHITECOLLAR WORKERS AND STRONGER ECONOMIES NEXT YEAR WON'T PREVENT EUROPE'S JOBLESS RATE FROM RISING TO 119 OR 23 MILLION PEOPLE WITHOUT WORK UP FROM 22 MILLION THIS YEAR AS EFFECTS OF GERMANY'S DEEPENING RECESSION SPREAD JAPAN'S RECOVERY IS EXPECTED TO TAKE HOLD LATER THIS YEAR AND THE US REBOUND TO CONTINUE AT A STEADY IF SLOWER PACE ESTIMATES FOR 1993 GROWTH WERE LOWERED TO 1 FROM 23 FOR JAPAN BUT RAISED TO 26 FROM 24 FOR THE US CHILE'S GOVERNMENT AND LEGISLATORS AGREED TO EXTEND A 1990 LAW THAT INCREASED TAXES ON BUSINESS PROFITS TO 15 FROM 10 AND THE VALUEADDED TAX TO 18 FROM 16 THE LAW TO EXPIRE DEC 31 PRODUCED 800 MILLION IN REVENUE LAST YEAR NORTH KOREA TO GET FOREIGN CURRENCY FOR ITS AILING ECONOMY IS SAID TO BE BUYING LARGE NUMBERS OF USED CARS IN JAPAN FOR 2000 EACH AND SMUGGLING THEM INTO CHINA WHERE THEY SELL FOR UP TO 8000 BUYERS ALSO EVADE AUTO IMPORT LEVIES RANGING UP TO 250 9306020070 930602 LEISURE & ARTS ON DISK TRIBUTES TO JELLY MILES ET AL BY JIM FUSILLI SOME OF THIS YEAR'S MOST ENJOYABLE ALBUMS ARE TRIBUTE RECORDINGS HONORING A SINGER SONGWRITER OR MUSICAL FORM NANCI GRIFFITH'S OTHER VOICES OTHER ROOMS ELEKTRA FOR EXAMPLE REVIVES SELDOM HEARD YET INSTANTLY RECOGNIZABLE SONGS OF THE FOLK ERA GRIFFITH'S SWEET VOICE AND GENTLE GUITAR OFFER APPEALING GEMS BY RALPH MCTELL KATE WOLF TOM PAXTON GORDON LIGHTFOOT JERRY JEFF WALKER AND TOWNES VAN ZANDT WOODY GUTHRIE'S DO RE MI FEATURES GUY CLARK ON HARMONY AND JOHN PRINE JOINS IN ON THE CHORUS ON HIS SPEED OF THE SOUND OF LONELINESS OTHER GUESTS INCLUDE EMMYLOU HARRIS ARLO GUTHRIE BOB DYLAN AND CHET ATKINS WHO ADDS TO THE WARMTH OF TURN AROUND GRIFFITH'S AFFECTIONATE TREATMENT OF THE MATERIAL THOUGH IS THE CENTERPIECE ON OTHER VOICES OTHER ROOMS A SLICEOFAMERICANA RECORDING THAT BURSTS WITH LOVE JOY AND MEMORIES JELLY COLUMBIA BY THE DIRTY DOZEN BRASS BAND IS A JUBILANT TRIBUTE TO JELLY ROLL MORTON WHOSE MATERIAL EASILY WITHSTANDS THE TWISTS AND TURNS THE LIVELY NEW ORLEANSBASED OCTET AND ITS SIX ARRANGERS BRING TO IT EACH OF THE 11 SONGS SEEMS TO BOAST ITS OWN PERSONALITY THE PEARLS IS A SLEEK SMOKY BLUES NUMBER WHILE SHOE SHINER'S DRAG IS BIG AND BRASSY WITH A LURCHING SECONDLINE SYNCOPATION NEW ORLEANS BLUES IS AN ALLOUT STREET PARADE WHILE GEORGIA SWING EMPLOYS A ROCKLIKE BACKBEAT UNDER POWERFUL UNISON PLAYING BY THE HORNS SOLOS BY ROGER LEWIS ON SAXOPHONE AND EFREM TOWNS PARTICULARLY ON WOLVERINE BLUES ARE SUCCINCT YET ADVENTUROUS PERCUSSIONISTS KENYATTA SIMON AND BIG CHIEF SMILEY RICKS ADD A CONTEMPORARY PERCOLATION TO JUNGLE BLUES AND GEORGE FRENCH HANDLES THE VOCALS ON MILENBERG JOYS DANNY BARKER WHO PERFORMED IN MORTON'S BAND AS EARLY AS 1930 CONTRIBUTES A FEW PERSONAL ANECDOTES JELLY IS THE KIND OF RECORDING THAT DESERVES A WIDE AUDIENCE ONE THAT INCLUDES JAZZ LOVERS SEEKING THE FORM'S ORIGINS AND CASUAL LISTENERS LONGING FOR SOMETHING OFFBEAT AND CATCHY LIKE THE JOPLIN RAGS ON THE STING SOUNDTRACK BACK IN 1973 MUDDY WATER BLUES VICTORY PAUL RODGERS'S TRIBUTE TO MUDDY WATERS IS A SPOTTY AFFAIR RODGERS LEAD SINGER OF SUCH MARGINAL '70S ROCK GROUPS AS FREE AND BAD COMPANY BETRAYS HIS GRITTY VOICE ON SOME NUMBERS WITH ARRANGEMENTS THAT SOUND LIKE OUTTAKES FROM HIS EARLIER EFFORTS DRUMMER JASON BONHAM IS PARTICULARLY PONDEROUS HIS BOOMING CONTRIBUTION OFTEN ADDS UP TO TWO TITANIC INTERRUPTIONS PER BAR AND THE TERRIFIC BASSIST PINO PALLADINO IS UNDERUSED ON THE OTHER HAND THE RECORDING FEATURES A CAVALCADE OF GUITARISTS IN FINE FORM AMONG THEM DAVID GILMOUR STEVE MILLER TREVOR RABIN NEAL SCHON BRIAN MAY SLASH AND JEFF BECK WHO IS DOWNRIGHT NASTY ON GOOD MORNING LITTLE SCHOOLGIRL BECK AND RODGERS SHOW WHAT THE ALBUM COULD HAVE BEEN ON A VERY SLY VERY SLINKY I CAN'T BE SATISFIED THE LATE MILES DAVIS IS THE SUBJECT OF TWO WORTHY TRIBUTES THE SAXOPHONIST JOE HENDERSON'S SO NEAR SO FAR VERVE IS SUBTITLED MUSINGS FOR MILES AND ON IT HENDERSON AND FORMER DAVIS COLLEAGUES JOHN SCOFIELD AL FOSTER AND DAVE HOLLAND TAKE NINE WELLCHOSEN COMPOSITIONS BY THE LATE TRUMPETER EXPAND THEIR PARAMETERS AND ABSTRACT THEIR ESSENCE AS DRUMMER FOSTER AND BASSIST HOLLAND PROVIDE DELICATE RHYTHM AND TEXTURE GUITARIST SCOFIELD EMPLOYS A VARIETY OF WARM TONES AND PHRASES TO LACE THE MIDRANGE WITH COLOR AND HE EXECUTES HIS TASTEFUL THOUGHTFUL SOLOS WITH CHARACTERISTIC FLUIDITY AS FOR HENDERSON WHO AS WAS DAVIS IS A MASTER OF TIME AND THE USE OF SPACE WHO PRIZES QUICKNESS OVER SPEED HE WASHES THE SUBTLE STRUCTURES WITH WAVES OF SOUND FROM HIS TENOR AND SO THE QUARTET'S VERSION OF FLAMENCO SKETCHES IS AS FRAGILE AS FRAUGHT WITH TENSION AS THE ORIGINAL MASTERPIECE HENDERSON ALSO SHOWS HIS PLAYFUL SIDE ON TEO HIS ENTRANCE MIMICS A TRUMPET BEFORE OPENING UP TO A FULL TENOR AND ON PFRANCING NO BLUES HE TRADES QUICK BURSTS WITH SCOFIELD HENDERSON AND SCOFIELD WORK SO WELL TOGETHER LET'S HOPE THIS RELATIONSHIP CONTINUES THE APTLY TITLED SWING SPRING IS A DELIGHT BYEBYE BLACKBIRD ECM BY FORMER DAVIS BANDMATES KEITH JARRETT GARY PEACOCK AND JACK DEJOHNETTE FEATURES SIX TUNES ASSOCIATED WITH THE LATE TRUMPETER NONE OF WHICH WERE WRITTEN BY HIM JARRETT PEACOCK AND DEJOHNETTE WHO HAVE BEEN WORKING AS THE KEITH JARRETT TRIO FOR NEARLY A DECADE NOW HAVE DEVELOPED THAT ALMOST TELEPATHIC EMPATHY THAT RESULTS FROM THE INTIMACY OF RELATIONSHIP AND THIS PERMITS THEM TO SUSPEND STRUCTURE UNTIL A SONG BECOMES MERE VAPOR ON I THOUGHT ABOUT YOU AND THE EXQUISITE YOU WON'T FORGET ME A TAUT SILENCE FOLLOWS AN ARDENT SOLO BY JARRETT IT IS AS IF THE TRIO WAS OPENING A SPACE FOR DAVIS TO ENTER THE ONLY NEWLY COMPOSED NUMBER ON THE ALBUM FOR MILES WHICH FEATURES A MASTERFUL PERFORMANCE BY DEJOHNETTE MARRIES THE TENSION OF SOME OF JARRETT'S SOLO WORK WITH THE BRAVADO OF DAVIS'S SKETCHES OF SPAINERA RECORDINGS 9306020069 930602 POLITICS & POLICY CAPITAL JOURNAL BY GERALD F SEIB SO FAR THE CLINTON ADMINISTRATION'S EFFORTS TO WOO REPUBLICANS HAVE BEEN ROUGHLY AKIN TO THE PERFORMANCE OF THE TYPICAL BASEBALL EXPANSION TEAM THEY WERE MISERABLE AT THE BEGINNING AND HAVE IMPROVED ONLY TO INADEQUATE BY HIRING DAVID GERGEN THE REAGAN ADMINISTRATION'S COMMUNICATIONSMEISTER PRESIDENT CLINTON IS SIGNALING THAT HE SENSES THE PROBLEM BUT SIMPLY HIRING MR GERGEN WON'T SOLVE IT INSTEAD AS SOME ON THE CLINTON TEAM ARE STARTING TO REALIZE THE WHITE HOUSE NEEDS TO RETHINK ITS WHOLE ATTITUDE TOWARD GOVERNING UNTIL NOW THE ADMINISTRATION HAS DEPENDED ON A DEMOCRATSONLY GOVERNING STRATEGY THAT HASN'T ADEQUATELY COMPENSATED FOR THE WEAKNESSES INHERENT IN A PRESIDENT WHO WON WITH JUST 43 OF THE POPULAR VOTEAND WHO TOOK OFFICE WITH ROSS PEROT A THIRDPARTY CHALLENGER STILL NIPPING AT HIS HEELS THE ELECTION DIDN'T GIVE MR CLINTON A MANDATE TO RULE SO MUCH AS AN ASSIGNMENT TO BUILD COALITIONS HIS PARTY TECHNICALLY CONTROLS BOTH HOUSES OF CONGRESS BUT DOESN'T HAVE A RULING MAJORITY IN THE FILIBUSTERPRONE SENATE OR AN IDEOLOGICAL LOCK ON CONSERVATIVES IN THE HOUSE THE SITUATION CALLS FOR REACHING OUT TO REPUBLICANS ON SELECTED ISSUES BUT THERE HAS BEEN FAR TOO LITTLE OF THAT THERE HAS YET TO BE A MEANINGFUL REPUBLICAN VOTE CAST FOR ANY PART OF THE PRESIDENT'S ECONOMIC PACKAGE IT MAY BE TRUE AS CLINTON ALLIES ARGUE THAT IT IS NEARLY IMPOSSIBLE TO GET REPUBLICANS TO VOTE FOR ANY PACKAGE THAT INCLUDES TAX INCREASES BUT THERE HASN'T BEEN A SERIOUS EFFORT TO TEST THAT THESIS SEN JOHN CHAFEE A MODERATE RHODE ISLAND REPUBLICAN HAS OBSERVED THAT HE NEVER EVEN HEARD FROM WHITE HOUSE LOBBYISTS UNTIL THE DISASTROUS SENATE FIGHT THAT KILLED THE ADMINISTRATION'S ECONOMICSTIMULUS PLAN AND EVEN IF THERE ISN'T MUCH POTENTIAL REPUBLICAN SUPPORT FOR THE BUDGET PLAN THERE COULD BE BIPARTISAN HELP ON OTHER ISSUES CONSIDER THE CASE OF SEN NANCY KASSEBAUM OF KANSAS AND THE ISSUE OF HEAD START PRESIDENT CLINTON WANTS A BIG BOOST IN HEAD START FUNDING SEN KASSEBAUM THE RANKING REPUBLICAN ON THE LABOR AND HUMAN RESOURCES COMMITTEE IS A LONGSTANDING HEAD START SUPPORTER AS WELL BUT SHE ALSO THINKS INCREASED FUNDING SHOULD BE PRECEDED BY NEW PROCEDURES TO BETTER ACCOUNT FOR HEAD START SPENDING THE SENATOR MIGHT HAVE BEEN WILLING TO JOIN FORCES WITH THE WHITE HOUSE IN A BIPARTISAN APPROACH YET THE CLINTON ADMINISTRATION DIDN'T SEEK HER OUT BEFORE PROPOSING ITS FUNDING PLAN SO SHE HAS INTRODUCED A BILL OF HER OWN TO TIGHTEN UP ADMINISTRATION OF HEAD START BY AMONG OTHER THINGS ESTABLISHING BASIC PERFORMANCE STANDARDS STRENGTHENING TECHNICAL ASSISTANCE FOR HEAD START PROGRAMS AND INTRODUCING MORE COMPETITION NOW THE WHITE HOUSE HAS TO CONTEND WITH A SEPARATE REPUBLICAN AGENDA REPUBLICAN SUPPORT WOULD BE EXTREMELY USEFUL TO MR CLINTON ON COMING ISSUES SUCH AS WELFARE REFORM AND CAMPAIGN FINANCING IT WILL BE ABSOLUTELY ESSENTIAL FOR THE ADMINISTRATION'S BIG HEALTHCARE PLAN YET EVEN ON HEALTH CARE CONSULTATIONS WITH REPUBLICANS WERE ONLY SPORADIC UNTIL SEN JAY ROCKEFELLER A WEST VIRGINIA DEMOCRAT AND KEY CLINTON ALLY ON THE ISSUE TOLD THE WHITE HOUSE IT HAD TO BEGIN PULLING REPUBLICANS INTO THE PROCESS IN A SERIOUS WAY BY THEN SOME REPUBLICANS WERE ALREADY WRITING A RIVAL PLAN THERE ARE SIGNS BEYOND THE GERGEN HIRING SUGGESTING THAT PRESIDENT CLINTON AND HIS ADVISERS HAVE LEARNED SOMETHING REPUBLICANS ARE NOW BEING CONSULTED ON HEALTH CARE SO OFTEN THAT SOME ARE ACTUALLY TIRING OF IT CLINTON AIDES TALK AMBITIOUSLY OF CRAFTING A ROUGH WORKING COALITION ON KEY ISSUES IN THE SENATE WITH ABOUT A DOZEN MODERATE REPUBLICANS AND THE WAY TO GET TO THESE MODERATES SOME ADVISERS THINK IS TO GO TO THEM DIRECTLY RATHER THAN THROUGH SENATE GOP LEADER ROBERT DOLE WHO HAS EMERGED AS THE MOST VISIBLE CLINTON OPPONENT MR CLINTON SEEMS TO HAVE THE PERSONAL SKILLS TO GIVE SUCH A STRATEGY A FIGHTING CHANCE NOT LONG AGO HE HOSTED A MEETING THAT INCLUDED BOTH SEN KASSEBAUM AND MISSOURI REPUBLICAN JOHN DANFORTH ON THE WAY OUT THE PRESIDENT PULLED ASIDE SEN KASSEBAUM TO TELL HER THAT HE HAD BEEN REREADING A BOOK OF TALKS GIVEN IN A LECTURE SERIES NAMED AFTER HER LATE FATHER FORMER KANSAS GOV ALF LANDON AND HE HAD A SHORT CHAT WITH SEN DANFORTH ABOUT HIS DECISION TO RETIRE FROM THE SENATE BOTH REPUBLICANS WERE TOUCHED THE TRICK IS TO TURN SUCH CHARM INTO RESULTS MR PEROT IS WAITING TO POUNCE ON SIGNS THAT MR CLINTON CAN'T BRING THE TWO TRADITIONAL PARTIES TOGETHER THE PRESIDENT HIMSELF MUSED IN A RECENT WASHINGTON POST INTERVIEW THAT LAST YEAR'S THREEWAY ELECTION SPLIT MIGHT HAVE PRODUCED A PARLIAMENTARYLIKE POLITICAL SITUATION JUSTIFYING A NONPARTISAN CABINET THE HIRING OF MR GERGEN CAN HELP BUT ONLY IF THE ADMINISTRATION ALSO MOVES ITS POLICIES TOWARD FIRMER MIDDLE GROUND 9306020068 930602 BUSINESS BRIEF RAYROCK YELLOWKNIFE RESOURCES INC STRIKE BEGINS AT SUBSIDIARY MAIN ISSUE IS HEALTH BENEFITS RAYROCK YELLOWKNIFE RESOURCES INC SAID UNIONIZED WORKERS AT ITS WESTERN AGMINERALS CO SUBSIDIARY IN CARLSBAD NM BEGAN STRIKING YESTERDAY AFTER A THREEYEAR CONTRACT EXPIRED DAVID CROMBIE RAYROCK CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID THE STRIKE AFFECTS ABOUT 130 WORKERS IN A WORK FORCE OF 190 HE SAID THE MAIN ISSUE IN THE STRIKE IS THE COMPANY'S INTENTION TO REDUCE THE COST OF HEALTH BENEFITS PRODUCTION AT WESTERN AGMINERALS WHICH MAKES LANGBEINITE A SPECIALTY FERTILIZER MINERAL IS BEING MAINTAINED BY NONUNION EMPLOYEES MR CROMBIE SAID RAYROCK TORONTO ALSO HAS INTERESTS IN GOLD AND COPPER MINING AND IN OIL AND GAS FOR THE TIME BEING THE STRIKE WON'T AFFECT US VERY MUCH MR CROMBIE SAID WE'RE VERY OPTIMISTIC WE CAN GET A SETTLEMENT WITHIN A FEW DAYS 9306020067 930602 COMMODITIES GOLD PRICES FALL AFTER FAILING TO TOP KEY LEVEL MANY ANALYSTS BELIEVE UPWARD TREND ISN'T OVER BY JEFFREY TAYLOR STAFF REPORTER OF THE WALL STREET JOURNAL GOLD PRICES TUMBLED AFTER FAILING TO TOP KEY PRICE LEVELS AT ABOUT 386 AN OUNCE ON NEW YORK'S COMMODITY EXCHANGE THE PRICE OF THE ACTIVELY TRADED AUGUST CONTRACT WAS DOWN 9 TO 37130 AN OUNCE PLATINUM FOR JULY DELIVERY FELL 770 TO 39210 AN OUNCE WHILE THE JULY SILVER CONTRACT PLUNGED 217 CENTS TO 4405 AN OUNCE THIS WAS A LONGAWAITED TECHNICAL CORRECTION SAID IAN MACDONALD CHIEF OF PRECIOUS METALS TRADING AT CREDIT SUISSE FINANCIAL PRODUCTS GOLD WAS DOING TOO MUCH TOO SOON GOLD FOR AUGUST DELIVERY HAD RISEN NEAR THE PSYCHOLOGICALLY IMPORTANT 386 ANOUNCE LEVEL THREE TIMES ONLY TO FALL BACK EACH TIME INABILITY TO BREAK THE LEVEL YESTERDAY SPAWNED BROADBASED SELLING IN SOME CASES BY GOLD PRODUCERS AND CENTRAL BANKS ANALYSTS SAID STRENGTH IN THE DOLLAR ALSO WEIGHED DOWN GOLD PRICES YESTERDAY MOREOVER PRESIDENT CLINTON'S SUCCESS IN PUSHING A BUDGET THROUGH THE HOUSE AND HIS PROSPECTS FOR WINNING APPROVAL FROM THE SENATE DIMINISHED THE CLIMATE OF ECONOMIC UNCERTAINTY THAT HAS BEEN FEEDING THE RALLY IN GOLD SAID FRED DEMLER METALS ECONOMIST FOR PAINEWEBBER IN NEW YORK TOWARD THE END OF THE DAY AS THE PRICE FELL THROUGH RESISTANCE POINTS AT THE 374ANOUNCE LEVEL COMMODITY FUNDS ENTERED THE MARKET AS SELLERS THESE FUNDS ARE MANAGED POOLS OF INVESTOR MONEY THAT BUY ON THE BASIS OF MATHEMATICAL COMPUTATIONS RATHER THAN SUPPLYANDDEMAND FACTORS FEW ANALYSTS THINK GOLD'S UPWARD SURGE IS FINISHED ALTHOUGH THEY SEE PROSPECTS FOR MORE NEGATIVE PRESSURE ON PRICES IN THE NEAR FUTURE FOR EXAMPLE THE TAX INCREASES INCLUDED IN PRESIDENT CLINTON'S DEFICITREDUCTION PLAN COULD HAVE A NEGATIVE IMPACT ON CONSUMER SPENDING POSSIBLY DIMINISHING SMALL INVESTORS' INTEREST IN GOLD ANALYSTS SAID APPROVAL OF THE PACKAGE BY THE SENATE COULD TEMPORARILY PULL GOLD PRICES LOWER ALSO OF KEEN INTEREST TO GOLD TRADERS WILL BE FRIDAY'S GOVERNMENT UNEMPLOYMENT REPORT POOR UNEMPLOYMENT DATA WOULD POINT TOWARD A POSSIBLE RECESSION WHICH COULD APPLY DOWNWARD PRICE PRESSURE TO PRECIOUS METALS ON THE OTHER HAND WEAK EMPLOYMENT FIGURES COULD ALSO PROMPT THE FEDERAL RESERVE TO EASE INTEREST RATES WHICH WOULD BE POSITIVE THAT'S BECAUSE LOWER INTEREST RATES REDUCE THE HOLDING RATE FOR GOLD A FINAL FACTOR IN THE MARKET OVER THE NEXT FEW WEEKS WILL LIKELY BE CONTINUING FEAR THAT CENTRAL BANKS AND GOLD PRODUCERS WILL TAKE ADVANTAGE OF THE HIGHEST GOLD PRICES SINCE 1991 TO LIQUIDATE MORE OF THEIR STOCKS IF THE MARKET ENCOUNTERS SUCH SELLING AND PRICES MANAGE TO REMAIN IN THE NEIGHBORHOOD OF 370 OR 380 AN OUNCE IT COULD BE AN INDICATION THAT PRICES OVER THE LONG TERM ARE HEADED ABOVE 400 I THINK YOU COULD SEE 400 OR 420 BY SEPTEMBER SAID DENISE GIORDANO DIRECTOR OF BULLION TRADING AT SWISS BANK CORP IN NEW YORK PEOPLE WILL FEEL MORE COMFORTABLE WITH THE MARKET ONCE IT DOES RETRACE HIGHER IN OTHER COMMODITY MARKETS YESTERDAY GRAINS AND SOYBEANS COMMODITY FUNDS AND OTHER BIG TRADERS BID SOYBEAN FUTURES PRICES SHARPLY LOWER AT THE CHICAGO BOARD OF TRADE ON FRIDAY THE COMMODITY FUTURES TRADING COMMISSION RELEASED A BIMONTHLY REPORT ON COMMITMENT OF TRADERS WHICH SHOWS WHERE SMALL SPECULATORS HAVE CONCENTRATED THEIR POSITIONS IN THE CBOT'S GRAIN MARKETS THE REPORT SHOWED OVERWHELMING PARTICIPATION BY SMALL INVESTORS IN LONG POSITIONS IN SOYBEAN FUTURES CONTRACTS LONG POSITIONS ARE WAGERS THAT SOYBEAN PRICES WILL RISE THAT IN THE ABSENCE OF A DROUGHT THAT MIGHT DAMAGE THE CROP SPAWNED WIDESPREAD SELLING BY FUNDS SAID DANIEL W BASSE MARKET RESEARCH DIRECTOR FOR AGRESOURCE CO CHICAGO IN THE PAST COUPLE OF YEARS HE NOTED THE MEMORIAL DAY AND THE FOURTH OF JULY HOLIDAY WEEKENDS HAVE BEEN TURNING POINTS IN THE MARKET AS COMMODITY FUNDS CAPITALIZED ON SMALL SPECULATORS' POSITIONS SOYBEANS FOR JULY DELIVERY WERE DOWN 195 CENTS TO 589 A BUSHEL ENERGY CRUDE OIL FUTURES PRICES FOR JULY DELIVERY ROSE 22 CENTS IN TRADING ON THE NEW YORK MERCANTILE EXCHANGE YESTERDAY PUSHED HIGHER BY TECHNICAL FACTORS TRADERS APPARENTLY SHRUGGED OFF AN EARLY RELUCTANCE TO MOVE TOO FAR IN EITHER DIRECTION WITH NEXT WEEK'S MEETING OF THE ORGANIZATION OF PETROLEUM EXPORTING COUNTRIES APPROACHING SOME MARKET ANALYSTS SAID THE PRICE RISE WASN'T TIED TO REPORTS THAT KUWAIT WILL LIKELY ACCEPT A THIRDQUARTER PRODUCTION QUOTA INCREASE OF 200000 BARRELS A DAY RATHER THAN 400000 THEY CREDIT TECHNICAL TRADING FACTORS WHICH ONCE PRICES BROKE THROUGH CERTAIN RESISTANCE LEVELS PROPELLED PRICES HIGHER JULY CRUDE SETTLED AT 2024 A BARREL WITH AUGUST AND OUTER MONTHS HIGHER PRODUCTS ROSE AS WELL ON TECHNICAL FACTORS AND THE STRENGTH IN CRUDE WITH JULY HEATING OIL ADDING 65 CENT A GALLON TO FINISH AT 5514 CENTS AND JULY GASOLINE SETTLING 55 CENTS HIGHER AT 5897 CENTS A GALLON 9306020066 930602 BUSINESS BRIEF GENERAL MOTORS CORP CERTAIN SEVILLES ELDORADOS FROM 1993 ARE RECALLED GENERAL MOTORS CORP SAID IT IS RECALLING 11919 OF ITS 1993 MODEL YEAR CADILLAC SEVILLES AND ELDORADOS TO REPAIR FUEL LINES THAT COULD LEAK AND IGNITE AN ENGINE FIRE THE RECALL AFFECTS NEARLY 60 OF THE 20215 SEVILLES AND ELDORADOS SOLD IN THE 1993 MODEL YEAR WHICH RUNS FROM LAST OCT 1 THROUGH THIS SEPT 30 AND BUILT BEFORE DEC 23 1992 THE MODELS INVOLVED IN THE RECALL ARE THE SEVILLE TOURING SEDAN ELDORADO SPORT COUPE AND ELDORADO TOURING COUPE EQUIPPED WITH A 46LITER V8 ENGINE ON SOME OF THE MODELS THE FUEL LINE CONNECTOR WAS IMPROPERLY FITTED AND MAY LOOSEN THE COMPANY SAID A GM SPOKESMAN SAID THE COMPANY BELIEVES ONLY 15 OR 179 OF THE 11919 BEING RECALLED MAY HAVE THIS PROBLEM BUT THERE HAVE BEEN NO ACCIDENTS OR FIRES REPORTED AS A RESULT OF THIS CONDITION GM SAID GM SAID DEALERS WILL MAKE THE NECESSARY REPAIRS AT NO CHARGE 9306020065 930602 BUSINESS BRIEF COMMODORE INTERNATIONAL LTD THIRDQUARTER LOSS POSTED ON 39 DECLINE IN REVENUE COMMODORE INTERNATIONAL LTD POSTED A HUGE THIRDQUARTER LOSS ON 39 LOWER REVENUE REFLECTING SEVERE PRICE CUTTING AND AN ECONOMIC SLOWDOWN IN THE COMPANY'S MARKETS COMMODORE LOST 1776 MILLION OR 537 A SHARE AGAINST EARNINGS OF 41 MILLION OR 12 CENTS A SHARE A YEAR AGO THE LATEST QUARTER'S LOSS INCLUDED A 135 MILLION CHARGE TO WRITE DOWN ASSETS AND INVENTORY AS WELL AS FOR A RESTRUCTURING AND OTHER NONRECURRING ITEMS REVENUE IN THE QUARTER ENDED MARCH 31 FELL TO 1209 MILLION FROM 1946 MILLION THE WEST CHESTER PA SUPPLIER OF MULTIMEDIA COMPUTER SYSTEMS BLAMED THE POOR SHOWING ON ECONOMIC SOFTNESS IN ALL OF THE MARKETS IN WHICH IT SELLS PARTICULARLY IN GERMANY IN ADDITION PRICE CUTTING ON SOME OLDER LINES OF COMMODORE PERSONAL COMPUTERS HURT REVENUE GROWTH THE COMPANY SAID WE ARE EXTREMELY DISAPPOINTED WITH OUR RESULTS SAID IRVING GOULD COMMODORE'S CHAIRMAN SO WERE INVESTORS COMMODORE SHARES LOST 25 OF THEIR VALUE YESTERDAY PLUNGING 1 TO CLOSE AT 3 IN HEAVY NEW YORK STOCK EXCHANGE COMPOSITE TRADING 9306020064 930602 BUSINESS BRIEF INTERNATIONAL TOTALIZATOR SYSTEMS CONCERN TO SELL EQUITY STAKE TO UNIT OF MALAYSIA'S BERJAYA INTERNATIONAL TOTALIZATOR SYSTEMS INC SAID IT HAS AGREED TO SELL A 40 EQUITY STAKE TO A SUBSIDIARY OF BERJAYA GROUP BHD OF MALAYSIA IN TRANSACTIONS THAT ARE EXPECTED TO RAISE 353 MILLION IN GROSS PROCEEDS INTERNATIONAL TOTALIZATOR A PROVIDER OF LOTTERY WAGERING AND TICKETING EQUIPMENT SAID IT AGREED TO SELL 1950000 AUTHORIZED BUT UNISSUED SHARES OF COMMON STOCK AT 5 EACH AND SUBJECT TO SHAREHOLDER APPROVAL 4650000 ADDITIONAL SHARES OF AUTHORIZED BUT UNISSUED COMMON SHARES AT 550 EACH TO BERJAYA LOTTERY MANAGEMENT HK LTD THE TRANSACTIONS WOULD BOOST THE COMPANY'S SHARES OF COMMON OUTSTANDING TO 164 MILLION FROM 98 MILLION THE AGREEMENT ALSO CALLS FOR BERJAYA TO APPOINT TWO BOARD MEMBERS AFTER THE FIRST SALE EXPANDING INTERNATIONAL TOTALIZATOR'S BOARD TO SEVEN MEMBERS CARLSBAD CALIFBASED INTERNATIONAL TOTALIZATOR SAID THE TRANSACTIONS WOULD ALLOW THE COMPANY TO EXPAND ITS LOTTERY CONTRACT MANAGEMENT BUSINESS BERJAYA LOTTERY MANAGEMENT OPERATES LOTTERY MANAGEMENT CONTRACTS AND SERVICE PACTS 9306020063 930602 BUSINESS BRIEF NEW YORK LIFE INSURANCE CO FIRM AGREES TO BUY AETNA'S UK LIFE INSURANCE LINE NEW YORK LIFE INSURANCE CO HAS AGREED TO BUY THE UNITED KINGDOM LIFE INSURANCE OPERATIONS OF AETNA LIFE & CASUALTY CO TERMS WEREN'T DISCLOSED THE LIFE OPERATION OF AETNA UK MANAGES ABOUT 400 MILLION IN ASSETS AND IS THE SECONDLARGEST PROVIDER OF EMPLOYEE BENEFITS IN THE UK SPECIALIZING IN LIFE PERSONAL HEALTH AND DISABILITY INCOME INSURANCE NEW YORK LIFE'S ACQUISITION WILL BE MADE THROUGH WINDSOR GROUP LTD THE COMPANY'S BRITISH SUBSIDIARY WINDSOR NOW MANAGES 11 BILLION IN ASSETS REGULATORY APPROVAL OF THE TAKEOVER IS EXPECTED LATER THIS MONTH FOLLOWING THE SALE AETNA WILL STILL BE IN THE INVESTMENT MANAGEMENT REINSURANCE AND PROPERTY AND CASUALTY INSURANCE BUSINESSES IN THE UK 9306020062 930602 BUSINESS BRIEF INTERMARK INC PLAN OF REORGANIZATION GETS APPROVAL BY DEBT HOLDERS INTERMARK INC SAN DIEGO SAID ITS PLAN OF REORGANIZATION UNDER CHAPTER 11 RECEIVED APPROVAL BY HOLDERS OF MORE THAN 75 OF ITS UNSECURED DEBT INTERMARK WITH ITS TRITON GROUP LTD UNIT FILED A VOLUNTARY PETITION UNDER CHAPTER 11 OF THE BANKRUPTCY CODE ON OCT UNDER THE PLAN INTERMARK AND TRITON ARE TO BE MERGED INTO A SINGLE SURVIVING ENTITY WHICH WILL BE CALLED TRITON GROUP LTD THE UNSECURED DEBT OF INTERMARK AND TRITON OF WHICH ABOUT 95 IS OWED TO HOLDERS OF SUBORDINATED NOTES AND DEBENTURES WILL BE CONVERTED INTO COMMON STOCK OF THE NEW TRITON GROUP AND HOLDERS OF UNSECURED DEBT WILL RECEIVE 99 OF THE NEW TRITON GROUP COMMON STOCK WITH THE REMAINDER TO BE DISTRIBUTED AMONG INTERMARK'S CURRENT EQUITY HOLDERS THE PLAN REQUIRES APPROVAL OF A FEDERAL JUDGE WHO WILL HOLD A HEARING ON THE MATTER ON FRIDAY 9306020061 930602 OTC FOCUS TECHNOLOGY STOCKS HELP NASDAQ INDEX RISE 375 POINTS MICROSOFT HITS HIGH BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK LARGE TECHNOLOGY STOCKS LIFTED THE OVERTHECOUNTER MARKET IN MIXED TRADING WITH MICROSOFT LEAPING TO A HIGH AND A TINY FOOD MANUFACTURING COMPANY SURGING 77 ON ITS FUTURE CASINO PLANS THE NASDAQ COMPOSITE INDEX ROSE 375 OR 054 TO 70428 JUST BELOW ITS RECORD OF 70885 BUT DECLINING ISSUES OUTNUMBERED ADVANCERS 1362 TO 1305 ON TOTAL VOLUME OF 2368 MILLION SHARES UP FROM FRIDAY'S 2358 MILLION SHARES THERE HAS BEEN STRONG INSTITUTIONAL BUYING SOME COMPUTER PROGRAM BUYING AND SOME SHIFTING FROM NETWORKING STOCKS INTO BIG TECHNOLOGY STOCKS SAID JERRY NEWMAN AN INSTITUTIONAL TRADER WITH COWEN & CO IN SAN FRANCISCO MICROSOFT CLIMBED 3 5/8 TO 96 1/4 SAILING PAST ITS PREVIOUS HIGH OF 95 1/2 REACHED LAST WEEK APPLE COMPUTER WHICH ROSE 3/8 TO 57 AGREED NOT TO OPPOSE MICROSOFT'S AND HEWLETTPACKARD'S MOTIONS FOR SUMMARY JUDGMENT IN APPLE'S COPYRIGHT INFRINGEMENT LAWSUIT A MICROSOFT SPOKESWOMAN SAID APPLE CHARGED IN THE SUIT FILED IN 1988 THAT MICROSOFT AND HEWLETTPACKARD VIOLATED COPYRIGHTS THAT PROTECT THE LOOK AND FEEL OF ITS MACINTOSH COMPUTER AFTER THE CLOSE OF TRADING A DISTRICT COURT JUDGE GRANTED THE MOTION TO DISMISS THE CLAIMS AGAINST MICROSOFT AND HEWLETT INTEL SOARED 4 5/8 TO 115 1/2 ADOBE SYSTEMS ROSE 1 1/2 TO 67 1/2 AND ORACLE JUMPED 2 1/2 TO 44 1/4 A SMALL MAKER OF PASTA ABOUT TO BECOME A CASINO OPERATOR NONA MORELLI WAS THE MOST ACTIVE STOCK OF THE DAY THE STOCK SURGED 5/8 TO 1 7/16 ON 129 MILLION SHARES NEARLY 18 TIMES ITS NORMAL VOLUME BUT FOOD IS FAR FROM INVESTORS' MINDS AS THEY GRAB SHARES OF THE PUEBLO COLO COMPANY TRADERS SAID TRADERS SAID THE STOCK IS BEING SWEPT UP IN WALL STREET'S FRENZY CONCERNING RIVERBOAT CASINOS LAST MONTH NONA MORELLI DISCLOSED THAT IT HAS ENTERED INTO A LETTER OF INTENT WITH MISSISSIPPI ROSE INC TO LEASE A 20ACRE TRACT OF LAND IN MISSISSIPPI TO BUILD A 45000SQUAREFOOT RIVERBOAT CASINO BY THE SUMMER OF 1994 EARLIER IN MAY THE COMPANY BOUGHT ITS FIRST PLANNED INVESTMENT WOMACK'S CASINO IN CRIPPLE CREEK COLO IN A 33 MILLION TRANSACTION THE COMPANY IS CURRENTLY WAITING FOR APPROVAL TO OPERATE THE CASINO FROM THE COLORADO GAMING COMMISSION SAID BEVERLY OSHEL A COMPANY SPOKESWOMAN THIS IS A LOT OF ACTION FOR A COMPANY THAT POSTED A LOSS OF SEVEN CENTS A SHARE FOR ITS FISCAL THIRD QUARTER ENDED MARCH 31 A YEAR EARLIER THE COMPANY REPORTED EARNINGS OF SIX CENTS A SHARE MS OSHEL ATTRIBUTED THE EARNINGS DROP TO A FALL IN REVENUE FOR THE PERIOD TO 650000 FROM 907000 PEOPLE ARE JUST BEGINNING TO REALIZE WE ARE A GOOD COMPANY BOTH BECAUSE OF OUR PAST AND BECAUSE OF THE CASINO PART OF THE COMPANY MS OSHEL SAID MUCH OF THE SHARES WERE BOUGHT BY RETAIL INVESTORS TRADERS SAID THE RUSH FOR GAMBLING STOCK HELPED HOLLYWOOD CASINO TO LEAP 4 3/4 TO 31 NEARLY DOUBLE ITS INITIAL OFFERING PRICE OF 16 ON THURSDAY THE GAMBLING COMPANY OFFERED 51 MILLION SHARES THROUGH UNDERWRITERS LED BY SALOMON BROTHERS THE COMPANY OPERATES THE SANDS HOTEL & CASINO IN ATLANTIC CITY AND IS EXPANDING INTO THE RIVERBOAT CASINO BUSINESS SHUFFLE MASTER JUMPED 2 3/8 TO 12 1/8 THE COMPANY SAID IT HAS BEEN GRANTED A PRELIMINARY APPROVAL FROM THE NEVADA GAMING CONTROL BOARD FOR ITS NEW CARD GAME LET IT RIDE TO BE PLAYED ON THE CASINO FLOOR THE COMPANY SAID THE SECOND PHASE OF LICENSING WILL BEGIN WITH FIELD TESTING ON JUNE 7 AT THE EL DORADO CASINO IN RENO NEV STATION CASINOS ROSE 2 5/8 TO 22 1/8 THE LAS VEGAS COMPANY OFFERED 147 MILLION SHARES A WEEK AGO AT 20 THROUGH LEAD UNDERWRITER SALOMON BROTHERS MEANTIME RAILROADMEN'S FEDERAL SAVINGS & LOAN ASSOCIATION OF INDIANAPOLIS SURGED 9 1/4 TO 38 HUNTINGTON BANCSHARES WHICH EASED 3/8 TO 25 3/4 SAID IT ENTERED INTO A DEFINITIVE AGREEMENT TO BUY RAILROADMEN'S FOR 886 MILLION IN STOCK RAILROADMEN'S SHAREHOLDERS WILL RECEIVE 41 FOR EACH COMMON SHARE THEY HOLD PAYABLE IN HUNTINGTON COMMON SHARES RAILROADMEN'S WILL BE MERGED INTO HUNTINGTON NATIONAL BANK OF INDIANA OTHER NETWORKING STOCKS ALSO FELL SYNOPTICS COMMUNICATIONS TUMBLED 1 1/2 TO 117 3/4 AFTER IT SAID IT IS REDUCING PRICES BY 6 TO 23 ON ITS ETHERNET PRODUCTS CISCO SYSTEMS SLID 1 1/4 TO 52 3/4 SPECIALTY PAPERBOARD PLUNGED 4 1/2 TO 8 1/4 THE COMPANY SAID IT EXPECTS RESULTS FROM CONTINUING OPERATIONS IN THE SECOND QUARTER TO BE SUBSTANTIALLY BELOW CURRENT ANALYSTS' ESTIMATES OF 38 CENTS TO 42 CENTS A SHARE THE PRODUCER OF HEAVYWEIGHT PRESSBOARD USED IN OFFICE PRODUCTS WENT PUBLIC IN MARCH AT 13 THROUGH UNDERWRITERS LED BY PAINEWEBBER 9306020060 930602 WHAT'S NEWS BUSINESS AND FINANCE MCI AND BRITISH TELECOM AGREED TO JOIN IN WHAT WOULD BE A MAJOR COUNTERSTRIKE TO AT&T PEOPLE CLOSE TO THE COMPANIES SAID THE MOVE SURELY WILL ACCELERATE THE INCREASINGLY BITTER RIVALRY BETWEEN AT&T AND BRITISH TELECOM WHICH ARE RUSHING TO PROVIDE SEAMLESS GLOBAL SERVICES TO MULTINATIONAL CORPORATE CLIENTS THE PACT WILL PROBABLY INCLUDE A SIGNIFICANT INVESTMENT BY BRITISH TELECOM IN MCI AT&T AND VIACOM PLAN TO CONDUCT AN ELABORATE TEST THAT WILL ALLOW A COUPLE OF THOUSAND CUSTOMERS TO INTERACT WITH A RANGE OF VIDEO PROGRAMS FROM GAMES AND MOVIES TO EDUCATION SAID INDIVIDUALS CLOSE TO THE FIELD TRIAL GM IS TALKING ABOUT A POSSIBLE SETTLEMENT WITH ATTORNEYS SEEKING TO REPRESENT ALL THE OWNERS OF 47 MILLION PICKUPS WITH SIDEMOUNTED GAS TANKS GM SAID IT ISN'T DISCUSSING ANY SORT OF REPAIR TO THE TRUCKS IN THE TALKS STOCKS AND BONDS RALLIED AFTER GOLD PRICES TUMBLED REFLECTING A SUBSIDING OF INFLATION FEARS THE TREASURY'S 30YEAR BENCHMARK ISSUE SOARED MORE THAN 1 1/4 POINTS WHILE ITS YIELD DROPPED TO 688 THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 2491 TO 355234 DEFENDANTS IN FEDERAL SECURITIESFRAUD LAWSUITS MAY SEEK TO FORCE PARTIES NOT NAMED IN THE LAWSUITS TO PAY A SHARE OF THE DAMAGES THE SUPREME COURT SAID AFFIRMING A POSITION TAKEN BY MOST LOWER FEDERAL COURTS THAT HAVE ADDRESSED THE SHARING OF LIABILITY EMPLOYEES CAN'T SEEK MONEY DAMAGES FROM OUTSIDE PROFESSIONALS WHOM EMPLOYERS CONSULT ABOUT THEIR PENSION PLANS THE JUSTICES SAID THE RULING IS A VICTORY FOR PROVIDERS OF ACTUARIAL AND ACCOUNTING SERVICES TO PENSION PLANS MANUFACTURING EXPANDED IN MAY AFTER A DISAPPOINTING SETBACK THE MONTH BEFORE ACCORDING TO A SURVEY OF PURCHASING EXECUTIVES SEPARATELY PERSONAL INCOME AFTER ADJUSTMENTS FOR INFLATION DROPPED 04 WHILE SPENDING JUMPED 07 NEW CONSTRUCTION SPENDING DECLINED 15 IN APRIL AUSTRALIA PLANS TO HALT AT THE END OF JUNE SOME NORTHWEST AIR FLIGHTS BETWEEN JAPAN AND AUSTRALIA SAYING THE AIRLINE VIOLATED CAPACITY RULES IN RETALIATION THE US SAID IT WILL FORCE QANTAS AIRWAYS TO CUT SOME FLIGHTS BETWEEN AUSTRALIA AND LOS ANGELES NORTHWEST AIR'S PILOTS UNION DENOUNCED THE CONCESSION PACT BETWEEN THE AIRLINE AND TWO OTHER UNIONS RAYTHEON PLANS TO PAY 391 MILLION FOR BRITISH AEROSPACE'S BUSINESSJET UNIT IN A DEAL THAT WILL NEARLY DOUBLE RAYTHEON'S CORPORATEJET MARKET SHARE AND HELP THE COMPANY MOVE BEYOND ITS CORE DEFENSE BUSINESS ALCOA AND REYNOLDS METALS REACHED LABOR PACTS PROVIDING HIGHER WAGES BUT RESTRICTING HEALTH COVERAGE AT THE US'S BIG ALUMINUM MAKERS SHARES OF RAILROADMEN'S FEDERAL S&L SOARED 925 OR 32 TO 38 AFTER HUNTINGTON BANCSHARES SAID IT PLANS TO ACQUIRE RAILROADMEN'S IN A STOCK DEAL VALUED AT 886 MILLION THE CONGRESSIONAL BUDGET OFFICE GAVE A BOOST TO A LONGSTANDING PROPOSAL THAT THE TREASURY DEPARTMENT SELL SOME BONDS INDEXED TO INFLATION TOKYO STOCKS WERE MIXED TUESDAY IN LACKLUSTER TRADING BUT THE NIKKEI INDEX SNAPPED A THREESESSION LOSING STREAK EDGING UP 3906 TO 2059141 LONDON STOCKS ROSE AS DECLINING MONEYMARKET INTEREST RATES TRIGGERED DEMAND FOR STOCKINDEX FUTURES BONDS LEHMAN BROTHERS TREASURY INDEX 511724 UP 5742 COMMODITIES OIL 2024 A BARREL UP 22 CENTS DOW JONES FUTURES INDEX 12004 OFF 118 SPOT INDEX 11989 OFF 185 DOLLAR 10705 YEN UP 010 15865 MARKS OFF 00010 9306020059 930602 NATIONAL FUEL GAS CO DISCOVERY BUFFALO NY NATIONAL FUEL GAS CO'S SENECA RESOURCES CORP ANNOUNCED A NATURAL GAS DISCOVERY IN OFFSHORE FEDERAL WATERS IN THE GULF OF MEXICO 90 MILES OFF THE LOUISIANA SHORE IN 193 FEET OF WATER NATIONAL FUEL SAID PRODUCTION COULD BEGIN BY THE END OF THE YEAR THE COMPANY SAID THIS IS SENECA'S FIFTH DISCOVERY IN THE GULF OF MEXICO IN THE PAST TWO YEARS AND ADDED THAT SENECA PLANS TO DRILL FOUR MORE WELLS IN THE GULF THIS YEAR 9306020058 930602 BEAR STEARNS COS NEW YORK BEAR STEARNS COS SAID ITS BEAR STEARNS BANK GMBH SUBSIDIARY HAS BEEN ACCEPTED FOR MEMBERSHIP TO THE FRANKFURT STOCK EXCHANGE THE UNIT WAS OPENED IN FEBRUARY TO CONSOLIDATE ITS FOOTHOLD IN CENTRAL AND EASTERN EUROPE THE INVESTMENT BANKING AND SECURITIES COMPANY SAID 9306020057 930602 MARKETING & MEDIA KODAK INTRODUCES PORTABLE CD UNIT FOR USE WITH TV BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL EASTMAN KODAK CO TRYING TO SPARK CONSUMER ENTHUSIASM FOR ITS MUCHTOUTED PHOTO COMPACTDISK PRODUCTS IS ROLLING OUT A PORTABLE PHOTO CD PLAYER THE KODAK PHOTO CD PORTABLE PLAYER EXPECTED TO SELL FOR ABOUT 400 IS ABOUT THE SIZE OF A VHS VIDEOCASSETTE AND CAN BE PLUGGED INTO TELEVISION SETS ALLOWING CONSUMERS TO VIEW STILL PHOTOGRAPHS ON SCREEN KODAK WHICH INTRODUCED A LARGER STANDARDSIZE PHOTO CD PLAYER LAST YEAR TO A LESSTHANENTHUSIASTIC CONSUMER RESPONSE SAYS THE PORTABLE VERSION WILL ALLOW USERS TO VIEW PHOTOS AND LISTEN TO AUDIO CDS ALMOST ANYWHERE HOWEVER WALL STREET DIDN'T SEEM THAT IMPRESSED DO PEOPLE REALLY WANT THE ABILITY TO SEE STILL IMAGES ON THEIR TVS I'M NOT CONVINCED THEY DO SAID B ALEX HENDERSON AN ANALYST WITH PRUDENTIAL SECURITIES PHOTO CD USERS TAKE 35MM PICTURES IN THE USUAL WAY BUT AT THE LAB CAN HAVE THEIR PHOTOS STORED ON COMPACT DISKS THAT CAN BE PLAYED ON COMPUTERS EQUIPPED WITH CDROM DRIVES OR ON TV SETS HOOKED UP TO PHOTO CD PLAYERS SPECIAL KODAK SOFTWARE ALLOWS USERS TO ADD SOUND TO THE PHOTO CDS KODAK SAYS THE AUDIO QUALITY OF THE PORTABLE PHOTO CD PLAYER IS COMPARABLE TO REGULAR HIGHEND PORTABLE AUDIO DISC PLAYERS KODAK ASSERTS THAT ITS NEW PORTABLE PLAYER CAN DO SOMETHING A RIVAL CD DEVICEMADE BY NETHERLANDSBASED PHILIPS ELECTRONICS NV AND ALREADY ON THE MARKET CAN'T DO DISPLAY A SERIES OF IMAGES OVER A CONTINUOUS AUDIO TRACK THE PHILIPS' PORTABLE AND KODAK'S STANDARD PLAYER CAN PLAY ONLY INDIVIDUAL SOUND BITES WITH EACH IMAGE MOREOVER KODAK SAYS ITS PORTABLE IS MORE COMPACT THAN IS THE PHILIPS' DEVICE THE PHOTOGRAPHIC AND CHEMICAL GIANT BASED IN ROCHESTER NY IS CLEARLY AIMING AT THE 1993 HOLIDAY SEASON WITH ITS PORTABLE VERSION EXPECTED TO REACH STORE SHELVES IN THE FALL THE LARGER PHOTO CD PLAYER DIDN'T GENERATE MANY SALES DURING THE 1992 HOLIDAY SEASON DESPITE A 30 MILLION ADVERTISING CAMPAIGN THEY SPENT A LOT OF MONEY ROLLING IT OUT AND IT HASN'T GENERATED THE RETURNS MR HENDERSON SAID ANALYSTS QUESTION WHETHER CONSUMERS WHO CURRENTLY CAN BUY A PORTABLE AUDIO CD PLAYER FOR 100 TO 150 WILL PAY ABOUT 250 MORE FOR ONE THAT ALSO PLAYS PHOTO CDS ANALYSTS BELIEVE KODAK MAY HAVE MORE LUCK WITH BUSINESS CUSTOMERS WHO CAN DESIGN THEIR OWN PHOTO CDS FOR PRESENTATIONS TO DO THAT KODAK SAYS THEY NEED SPECIAL SOFTWARE A CDROM XA DRIVE AND A KODAK PCD WRITER 200 CDROM WRITER WHICH COSTS ABOUT 6000 SAYS THE KODAK SPOKESMAN WE THINK THERE'S A CONSUMER MARKET BUT WE ALSO THINK THERE'S A VERY LARGE BUSINESS PRESENTATION AND TRAINING MARKET 9306020056 930602 CLINTON IS EXPECTED TO DELAY AGAIN HIS HEALTH PLAN TO JULY OR SEPTEMBER BY JEFFREY H BIRNBAUM STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON AGAIN WILL PROBABLY DELAY THE UNVEILING OF HIS MASSIVE HEALTHCARE OVERHAUL PACKAGE AT LEAST UNTIL NEXT MONTH AND POSSIBLY UNTIL SEPTEMBER WHITE HOUSE AND CONGRESSIONAL OFFICIALS EXPECT THE PRESIDENT TO MISS HIS SELFIMPOSED DEADLINE OF COMPLETING HIS HEALTHCARE PLAN LATER THIS MONTH ONE REASON IS THAT MR CLINTON IS BEHIND SCHEDULE IN HIS DECISION MAKING BUT A BIGGER REASON IS THAT HIS CLOSE SCRAPE IN THE HOUSE LAST WEEK HAS CONVINCED HIM HE DOESN'T WANT TO CONFUSE THE DEFICITREDUCTION DEBATE IN THE SENATE WITH ANOTHER CONTROVERSY OVER HEALTH CARE HILLARY RODHAM CLINTON WOULD LIKE THE PLAN TO BE COMPLETED MORE PROMPTLY BUT EVEN SHE IS SAID TO ACKNOWLEDGE THAT THE PRESIDENT NEEDS TO FOCUS ON HIS ECONOMIC PACKAGE UNTIL IT CLEARS THE SENATE WE'VE SAID ALL ALONG IT DEPENDS ON THE STATUS OF BUDGET DISCUSSIONS IN THE SENATE AND THE PRESIDENT'S CONTINUING DISCUSSIONS WITH MEMBERS OF CONGRESS SAID BOB BOORSTIN A SPOKESMAN FOR THE WHITE HOUSE'S HEALTHCARE TASK FORCE THE ORIGINAL TARGET DATE FOR THE HEALTH PLAN WAS MAY 1 THAT DEADLINE HAS SINCE BEEN PUSHED BACK TO MAY 17 THEN TO ROUGHLY MIDJUNE LAWMAKERS CLEARLY ARE COUNSELING FURTHER DELAY WITH THE PRESIDENT'S DEFICITREDUCTION BILL FACING A ROCKY ROAD IN THE SENATE DEMOCRATIC LEADERS ARE URGING MR CLINTON TO CONCENTRATE ON GETTING THAT LEGISLATION THROUGH BEFORE HE TRIES TO SELL HIS NEXT BIG PROJECT HEALTH CARE SUCH FOCUS IS IMPORTANT THE LAWMAKERS INSIST BECAUSE IT WILL BE HARD ENOUGH TO PASS THE DEFICITREDUCTION PLAN'S CONTROVERSIAL TAX INCREASES WITHOUT SIMULTANEOUSLY REMINDING THEM THAT THE HEALTHCARE PLAN WILL HAVE BIG TAXES OF ITS OWN UNDER THE MOST OPTIMISTIC SCENARIO THE SENATE FINANCE COMMITTEE WILL APPROVE A VERSION OF THE DEFICITREDUCTION BILL BY THE MIDDLE OF THIS MONTH AND THE SENATE WILL COMPLETE ACTION ON THE MEASURE BY JULY 4 WHITE HOUSE AIDES SAID THE PRESIDENT COULD DISCLOSE HIS HEALTHCARE PACKAGE AFTER THE FINANCE COMMITTEE VOTE AND BEFORE THE FULL SENATE COMPLETES ITS WORK BUT THAT IS LIKELY ONLY IF THEY ARE ASSURED THAT THE SENATE WILL APPROVE THE DEFICITCUTTING LEGISLATION WITH EASE WHICH IS HIGHLY DUBIOUS BEFORE THE FORMAL UNVEILING AIDES SAID THE PRESIDENT AND MRS CLINTON WILL SOON BEGIN INTENSE CONSULTATIONS WITH MEMBERS OF CONGRESS ON A WORKING DRAFT OF THE HEALTH PACKAGE IF THE UNVEILING SLIPS INTO EARLY JULY OTHER OBSTACLES ARISE IN PARTICULAR PRESIDENT CLINTON IS SCHEDULED TO GO TO JAPAN ON JULY 7 TO MEET WITH THE LEADERS OF THE INDUSTRIALIZED NATIONS AND THEN PERHAPS VISIT OTHER ASIAN COUNTRIES THAT WOULD PUSH THE ANNOUNCEMENT INTO THE MIDDLE OF JULY WHICH IS JUST A COUPLE OF WEEKS BEFORE CONGRESS GOES OUT FOR ITS MONTHLONG AUGUST BREAK CONGRESSIONAL OFFICIALS SPECULATE THAT IT IS POSSIBLE THEN THAT THE HEALTH BILL COULD WAIT UNTIL SEPTEMBER TO BE UNVEILED FOR THEIR PART WHITE HOUSE OFFICIALS PLAY DOWN THAT PROSPECT A HALFDOZEN OR SO OF THE BIGGEST DECISIONS ABOUT THE HEALTHCARE PLAN ARE STILL UNRESOLVED AIDES SAID THE PRESIDENT CANCELED MAJOR MEETINGS THAT WERE DESIGNED TO NAIL DOWN SOME OF THE BASIC DETAILS LAST WEEK AND SPENT FULL TIME LOBBYING THE HOUSE TO PASS HIS DEFICITREDUCTION BILL MEETINGS TO PIN DOWN THESE DETAILS COULD OCCUR THIS WEEK BUT AS OF YESTERDAY THEY WEREN'T YET SCHEDULED MR CLINTON HIMSELF HINTED THAT HE WANTED TO WAIT FOR HIS DEFICITREDUCTION PLAN TO MOVE ALONG IN THE SENATE BEFORE HE TURNED TO HIS HEALTH PLAN IN MILWAUKEE YESTERDAY HE WAS ASKED ABOUT POSSIBLY DELAYING THE HEALTH PACKAGE UNTIL THE FALL HE ANSWERED I WANT THEM TO MOVE THIS BUDGET THROUGH IN A HURRY 9306020055 930602 LEISURE & ARTS BOOKSHELF ON THE ROAD WITH A BEATINSPIRED PROFESSOR BY BRUCE BAWER MORE STUDENTS THAN ONE CAN IMAGINE NOTES DOUGLAS BRINKLEY A HISTORY PROFESSOR AT LONG ISLAND'S HOFSTRA UNIVERSITY GRADUATE FROM COLLEGE WITHOUT THE MOST RUDIMENTARY KNOWLEDGE OF THEIR COUNTRY'S HISTORY AND GEOGRAPHY LAST YEAR I ASKED A CLASS OF THIRTY COLLEGE STUDENTS WHO ANDREW JACKSON WAS AND NOT A SINGLE ONE HAD EVEN THE FOGGIEST IDEA I ASKED ANOTHER CLASS TO NAME A MAJOR CITY IN KANSAS NOT ONE OF THEM COULD COME UP WITH TOPEKA OR WICHITA WHAT TO DO ABOUT THIS VERY REAL CRISIS IN EDUCATION MR BRINKLEY'S ANSWER A SEVENWEEK SIXCREDIT HISTORY COURSE QUA TRANSCONTINENTAL BUS TOUR ENTITLED AN AMERICAN ODYSSEY ART AND CULTURE ACROSS AMERICA MR BRINKLEY WHO PROVIDES AN EXHAUSTIVE ACCOUNT OF THIS TRIP IN THE MAJIC BUS HARCOURT BRACE 513 PAGES 2495 IS CLEARLY NOT YOUR FUSTY OLDFASHIONED KIND OF HISTORY PROF WHO THINKS SERIOUS EDUCATION HAS SOMETHING TO DO WITH TENDER MINDS LEARNING TO CONCENTRATE IN QUIET SOLITUDE ON COMPLEX FACTS AND IDEAS JUST ASK THE 17 KIDS HE HERDED AROUND THE NATION LAST SPRING TO THE STRAINS OF NEIL YOUNG BOB DYLAN AND WOODY GUTHRIE FOR MR BRINKLEY WHO REGARDS ALLAN BLOOM'S SOBER PRESCRIPTIONS FOR HIGHER EDUCATION AS HIGHTONED HOOEY AMERICA'S MEANING AND MYSTERY ARE WRAPPED UP NOT IN ANY SET OF CHALLENGING INTELLECTUAL ABSTRACTIONS BUT IN THE ELEMENTARY NOTION OF RUSHING FROM PLACE TO PLACE WANT YOUR STUDENTS TO KNOW THE NAME OF A CITY IN KANSAS TAKE 'EM THERE PAEANS TO MINDLESS MOTION STUD THESE PAGES CARL SANDBURG'S I DON'T KNOW WHERE I'M GOING BUT I'M ON THE WAY FOR INSTANCE INDEED MR BRINKLEY CONFESSES THAT ON THE ROAD JACK KEROUAC'S CELEBRATION OF AIMLESS MOVEMENT WAS THE SEMINAL BOOK OF MY COMING OF AGE AND HE STRIVES TO BE WORTHY OF THE BEAT LEGACY INANE LINES FROM KEROUAC HUNTER S THOMPSON AND ALLEN GINSBERG ABOUND ONE OF THE TOUR'S HIGHLIGHTS IS AN AUDIENCE WITH HIS IDOL KEN KESEY ONE FLEW OVER THE CUCKOO'S NEST MR BRINKLEY CONSISTENTLY SCORNS THE ELITIST AND EXALTS THE HIP HE COMPARES TS ELIOT UNFAVORABLY TO FELLOW ST LOUISAN CHUCK BERRY IT WAS THE REVOLUTIONARY ELVIS MR BRINKLEY CONFIDES THAT I WANTED MY STUDENTS TO MEET AT GRACELAND AT TIMES ONE IS ALMOST CHARMED BY HIS BREATHLESS ENERGY AND HIS ADOLESCENT SUSCEPTIBILITY TO EVERY BAD NOVEL OR POP SONG THAT EVER KICKED INTO VISIONARY OVERDRIVE ABOUT AMERICA BUT THIS SO COOL MAN IS A PROFESSOR HE IS ALSO A FIRSTRATE SELFPROMOTER HIS BEATSTYLE DENUNCIATIONS OF THE MEDIA AND MODERN COMMERCIALIZATION ARE ACCOMPANIED BY AN EXTRAORDINARY GIFT FOR MEDIA MANIPULATION HE BRAGS ABOUT THE TV INTERVIEWS AND NEWS ARTICLES SPAWNED BY HIS COURSE AND ABOUT THE DEAL HE STRUCK WITH A LAS VEGAS HOTEL A PLUG ON GOOD MORNING AMERICA IN EXCHANGE FOR ACCOMMODATIONS THIS YEAR HE SCHEDULED ANOTHER BUS TRIP THAT DOUBLED AS COURSE AND BOOK TOUR MOREOVER FOR ALL HIS DIGS AT MASS CULTURE IN THE MAJIC BUS THE TITLE IS TAKEN FROM A SONG BY THE WHO MR BRINKLEY REVEALS A CURIOUS PREOCCUPATION WITH SHOWBIZ TRIVIA READERS WON'T LEARN MUCH HISTORY FROM MR BRINKLEY BUT THEY WILL LEARN WHICH TV STARS LIVE IN CHARLOTTESVILLE VA AND WHICH LAS VEGAS CHAPELS JOAN COLLINS AND JON BON JOVI WERE MARRIED IN NOT TO EACH OTHER WHAT A HISTORY COURSE IN LAS VEGAS THEY GAMBLE IN NEW ORLEANS MR BRINKLEY BUYS A SIGNED FIRST EDITION OF JOHN KENNEDY TOOLE'S NOVEL A CONFEDERACY OF DUNCES A NEAT TRICK SINCE THE BOOK WAS PUBLISHED POSTHUMOUSLY IN UTAH THE KIDS LEARN THAT THE STATE IS THREEFOURTHS MORMON COULDN'T THEY HAVE LEARNED THAT BACK ON LONG ISLAND ALONG THE WAY THEY VISIT A FEW HISTORICAL AND CULTURAL SITES THOUGH TO WHAT EFFECT ONE WONDERS AT A MUSEUM WHERE THEY FAIL TO SHARE HIS REVERENCE FOR ROBERT RAUSCHENBERG'S QUIRKY ARTWORKS MR BRINKLEY REFLECTS THAT AT LEAST THEY'VE LEARNED TO CONSIDER THE QUESTION WHAT IS ART' FROM A FRESH NEW PERSPECTIVE YET HOW MUCH DID THEY KNOW ABOUT ART IN THE FIRST PLACE WHAT HAS HE TAUGHT THEM ABOUT IT WHAT DOES IT MEAN TO HAVE A FRESH NEW PERSPECTIVE ON SOMETHING OF WHICH ONE IS ESSENTIALLY IGNORANT VERY RARELY DOES MR BRINKLEY RELATE INCIDENTS IN WHICH SOMETHING RECOGNIZABLE AS EDUCATION IS TAKING PLACE AND THAT'S A SHAME FOR IN MANY WAYS HE'S EXACTLY WHAT TODAY'S COLLEGE STUDENTS NEED ASIDE FROM BEING WELLREAD HE'S GOT ENERGY ENTHUSIASM A LOVE OF HIS SUBJECT A RESPECT FOR HIS KIDS A PASSION TO COMMUNICATE YET WHAT DOES HE COMMUNICATE A TASTE FOR POTTED HISTORY AND HYPERROMANTIC GUSH AN ASTONISHING CAPACITY FOR UNCRITICAL FANDOM AND A SIMPLISTIC TENDENCY TO DIVIDE THE POPULATION INTO COLDHEARTED BUREAUCRATS AND LONESOME MYSTIC HIGHWAY SAINTS LIKE KEROUAC WHY NOT SIMPLY IGNORE A BOOK LIKE MR BRINKLEY'S BECAUSE IN THIS TIME OF SEVERE EDUCATIONAL PROBLEMS TOO MANY COLLEGE ADMINISTRATORS AND FACULTY THINK THAT HYPEHAPPY TEACHERS LIKE MR BRINKLEY AND HIGHCONCEPT APPROACHES LIKE HIS ARE THE SOLUTION IT WOULD BE DREADFUL IF THIS HEAVILY PROMOTED BUT FOOLISH AND NARCISSISTIC BOOK FOOLED MANY GENERAL READERS INTO THINKING THE SAME THING 9306020054 930602 INTERNATIONAL BRIEF ANGLO AMERICAN CORP EARNINGS DECLINED BY 54 IN MOST RECENT FISCAL YEAR ANGLO AMERICAN CORP OF SOUTH AFRICA SAID ITS EARNINGS DROPPED 54 IN THE FISCAL YEAR ENDED MARCH 31 TO 246 BILLION RAND 7737 MILLION AT THE COMMERCIAL RATE FROM 26 BILLION RAND JULIAN OGILVIE THOMPSON CHAIRMAN SAID THE MINING COMPANY'S PROFIT HELD UP WELL CONSIDERING THE DIFFICULTIES IN THE WORLD ECONOMIES AND IN PARTICULAR SOUTH AFRICA'S UNCERTAIN POLITICAL SITUATION HE DECLINED TO GIVE A FORECAST OF FUTURE EARNINGS BUT SAID IT WAS DEPENDENT IN PART ON HOW QUICKLY THE US ECONOMY RECOVERED ANGLO AMERICAN'S DIAMOND INTERESTS COMPRISED MAINLY OF ITS SUBSIDIARIES DE BEERS CONSOLIDATED MINES LTD AND SWISSBASED DE BEERS CENTENARY AG FELL TO THE GROUP'S SECOND LARGEST CONTRIBUTOR FROM FIRST IN 1992 DIAMOND INTERESTS ACCOUNTED FOR 201 OF EQUITY ACCOUNTED EARNINGS IN 1993 COMPARED WITH 246 IN 1992 9306020053 930602 ENTERPRISE SMALL FOOD MAKERS SEEK TO FATTEN LABELING LAWS' EXEMPTIONS BY BRENT BOWERS STAFF REPORTER OF THE WALL STREET JOURNAL SMALL FOOD PRODUCERS SAY THE COST OF COMPLYING WITH THE NEW US LABELING LAW COULD CRIMP THEIR OPERATIONS AND EVEN SHUT SOME OF THEM DOWN TO GAIN RELIEF THEY ARE SEEKING BROADER EXEMPTIONS FROM THE LAW LIKE MOST FEDERAL STATUTES THE NUTRITION LABELING AND EDUCATION ACT OF 1990 EXEMPTS SMALL BUSINESSES BUT THE MEASURE'S DEFINITION OF A SMALL BUSINESS IS UNUSUALLY NARROW ONLY A COMPANY WITH LESS THAN 500000 IN ANNUAL REVENUE QUALIFIES BY CONTRAST MANY OTHER FEDERAL LAWS EXEMPT COMPANIES BASED ON THEIR EMPLOYMENT WITH THE CEILING COMMONLY SET BETWEEN 25 AND 100 WORKERS THAT HAS LED A LOT OF MOMANDPOP MAKERS OF JAMS AND JELLIES AND OTHER HOMESTYLE VICTUALS TO COMPLAIN ABOUT THE EXPENSE OF SWITCHING THEIR LABELING TO INCLUDE NUTRITIONAL INFORMATION BY A MAY 1994 DEADLINE THEY ARE PUSHING FOR CONGRESS TO RELAX THE RULES AND THEY SEEM TO BE ON THE VERGE OF GETTING THEIR WAY ASIDE FROM SAVING THEM MONEY SUCCESS WOULD DEMONSTRATE AN IMPORTANT POLITICAL REALITY THE TINIEST SMALLBUSINESS SECTOR CAN BRING INFLUENCE TO BEAR AGAINST THE SUPREME LAWMAKING BODY OF THE LAND IF IT IS WELL ORGANIZED AND MAKES A LOT OF NOISE THE 1450MEMBER NATIONAL ASSOCIATION FOR SPECIALTY FOOD TRADE BELIEVES IT HAS A STRONG CASE IT ESTIMATES THAT A SMALL COMPANY WILL HAVE TO PAY 6250 PER PRODUCT TO MAKE THE SWITCH INCLUDING THE COST OF LABORATORY ANALYSIS DESIGN WORK AND NEWLABEL PRODUCTION THE FOOD AND DRUG ADMINISTRATION HAS ITS OWN ESTIMATE WHICH IS ONLY ABOUT HALF THAT FIGURE THE ASSOCIATION WHICH REPRESENTS MOSTLY GOURMETFOOD PRODUCERS SAYS THAT THERE ARE MORE THAN 10000 SMALL FOOD MANUFACTURERS IN THE US MANY OF THEM ARE FAMILY ENTERPRISES THAT WERE STARTED BY WOMEN WHO WORKED OUT OF THEIR HOME KITCHENS SINCE SUCH COMPANIES OFTEN MAKE A WIDE VARIETY OF PRODUCTS THE TRANSITION COSTS AMOUNT TO A BURDENSOME ONETIME FEE THE ASSOCIATION SAYS ROWENA FULLINWIDER SAYS MAKING THE SWITCH FOR HER FRUIT CURDS CARROT JAMS AND 30 OTHER ITEMS WOULD COST HER NORFOLK VA COMPANY ROWENA'S INC AS MUCH AS 200000 A BIG HIT FOR A COMPANY WITH 1 MILLION IN ANNUAL REVENUE BANKS WON'T LEND TO YOU FOR SOMETHING LIKE THIS BECAUSE IT WON'T IMPROVE YOUR BOTTOM LINE SHE SAYS THIS LEAVES MS FULLINWIDER ONE OPTION SHE SAYS I WOULD DECREASE MY PRODUCT LINE BY 35 TO 50 IMMEDIATELY BOB ROTHSCHILD OWNER OF ROBERT ROTHSCHILD BERRY FARM INC SAYS THE COST OF REMAKING HIS 90 LABELS WOULD SCOTCH HIS PLANS TO BUILD A 5000SQUAREFOOT ADDITION AND HIRE THREE PEOPLE IN RURAL URBANA OHIO THE COMPANY WHICH MAKES PRODUCTS AS DIVERSE AS HOT PEPPER PEACH PRESERVES AND RASPBERRY MUSTARD HAD ABOUT 2 MILLION IN REVENUE LAST YEAR HE SAYS AS MUCH AS CONGRESS MIGHT WANT TO HELP PEOPLE SUCH AS MS FULLINWIDER AND MR ROTHSCHILD IT PROBABLY WON'T TINKER WITH THE LAW UNLESS IT CAN BE PERSUADED THAT A PROPOSED CHANGE WON'T ADVERSELY AFFECT THE PUBLIC'S HEALTH AND THAT IS EXACTLY WHAT THE INDUSTRY IS ARGUING THE SMALL FOOD PRODUCERS WANT A REWRITING OF THE EXEMPTION TO BASE IT ON UNIT SALES OF A GIVEN PRODUCT RATHER THAN ON A COMPANY'S ANNUAL REVENUE THE NUMBER THAT THEY ARE ADVOCATING IS 750000 THAT WOULD MEAN FOR EXAMPLE THAT A 10 MILLION COMPANY THAT SELLS ONE MILLION JARS OF PICKLED ONIONS A YEAR AND 100000 JARS OF CURRIED MUSHROOMS WOULD HAVE TO PROVIDE NUTRITIONAL INFORMATION ABOUT THE ONIONS BUT NOT ABOUT THE MUSHROOMS WE'RE TALKING ABOUT LESS THAN ONEHALF OF 1 OF THE AMERICAN DIET SAYS JOHN ROBERTS EXECUTIVE DIRECTOR OF THE SPECIALTYFOOD TRADE GROUP THE FDA SAYS IT HAS NO OBJECTION TO RELAXING THE RULES WE WILL DEFINITELY SIGN ON TO A LARGER EXEMPTION SAYS WILLIAM HUBBARD THE FDA'S ASSOCIATE COMMISSIONER FOR POLICY ALTHOUGH HE PREDICTS A THRESHOLD CLOSER TO 500000 UNITS WILL BE ADOPTED WE DON'T CARE IF SOME LITTLE CONDIMENT YOU BUY IN WEST VIRGINIA HAS A NUTRITIONAL LABEL CONGRESS IS APPARENTLY PREPARED TO CONCEDE IT MADE A MISTAKE CONGRESSIONAL STAFF MEMBERS SAY SEN HOWARD METZENBAUM OF OHIO AND REP HENRY WAXMAN OF CALIFORNIA BOTH DEMOCRATS AND THE COSPONSORS OF THE 1990 LAW ARE AMENABLE TO A CHANGE ON ONE STRICT CONDITION THEY WON'T PERMIT BIG BUSINESS TO USE THEIR BACKTRACKING ON THIS ONE POINT TO REOPEN THE WHOLE POLITICALLY CHARGED DEBATE ABOUT NUTRITIONAL LABELING THE WILD CARD IS THE ATTITUDE OF CONSUMER GROUPS AND THEIR INITIAL REACTION IS SKEPTICISM I THINK THAT UNIT FIGURE WOULD BE IRRELEVANT FROM OUR STANDPOINT SAYS BRUCE SILVERGLADE LEGAL DIRECTOR AT THE CENTER FOR SCIENCE IN THE PUBLIC INTEREST IT SOUNDS LIKE THE MANUFACTURERS OF FADDY GOURMET FOODS ARE EMBARRASSED AT HOW UNHEALTHY THE INGREDIENTS ARE THAT JUST ISN'T SO SMALL PRODUCERS RETORT THEY SAY THAT FOR COMPETITIVE REASONS THEY WILL EVENTUALLY HAVE TO INCLUDE THE PERSERVING NUTRIENT DATA THAT BIG COMPANIES ARE REQUIRED TO PRINT AND THE ASSOCIATION SAYS ITS MEMBERS ARE WILLING TO SCALE BACK THEIR EXEMPTION OVER A PERIOD OF YEARS IT SAYS ALL THEY WANT IS RELEASE FROM NEXT YEAR'S DEADLINE SO THAT THEY CAN PHASE IN NEW LABELING AT THEIR OWN PACE BUT TIME IS SHORT COMPANIES SAY THEY NEED A MINIMUM OF NINE MONTHS TO CONVERT THEIR LABELS AND ARE PRESSING CONGRESS TO MAKE A DECISION BY LATE SUMMER I AM FOR NUTRITIONAL LABELING SAYS MS FULLINWIDER OF ROWENA'S A 54YEAROLD MOTHER OF THREE WHO STARTED HER BUSINESS 10 YEARS AGO WHILE WORKING FULLTIME AT NIGHT AS A MEDICAL TECHNOLOGIST ALL I WANT IS THE CHANCE TO HAVE ENOUGH SALES TO PAY FOR THIS HERE IS WHAT NUTRITION AND HEALTH CLAIMS ON FOOD PACKAGES PER SERVING WILL MEAN UNDER THE NEW FEDERAL LABEL LAWS 9306020052 930602 REVIEW & OUTLOOK EDITORIAL NEW MORNING THE ANNOUNCEMENT THAT DAVID GERGEN IS COMING INTO THE WHITE HOUSE IS NO DOUBT A HEADTURNER BUT IF BILL CLINTON'S PRESIDENCY HAS DISCOVERED A NEW MORNING YOU CAN DATE THE TURN HOURS EARLIER LAST FRIDAY THAT WAS WHEN MICKEY KANTOR ROBERT REICH AND LAURA TYSON HELD A JOINT NEWS CONFERENCE TO REBUT AND REFUTE ROSS PEROT'S TRASHING OF THE NORTH AMERICAN FREE TRADE AGREEMENT AS ONE OF THE BABY BOOMERS' MORE USEFUL LOCUTIONS WOULD HAVE IT SUPPORT FOR FREE TRADE IS A NO BRAINER YES ALL POLITICIANS KVETCH ABOUT THE OTHER COUNTRY'S UNFAIR PRACTICES BUT FEW LEADERS OF SERIOUS ECONOMIES GET OUT INTO THE DEEP WATERS OF PROTECTION THAT THESE CLINTON FOLKS HAD BEEN PADDLING AROUND IN LAST WEEK THE ADMINISTRATION AT LEAST APPEARED TO BE FINDING A MORE CERTAIN FOOTING ON TRADE PERHAPS MORE THAN THE GERGEN APPOINTMENT ITSELF DISCUSSED BELOW THIS TURN ON TRADE CARRIES POLITICAL AND ECONOMIC POTENTIAL FOR THE CLINTON PRESIDENCY POLITICALLY IT ALLOWS MR CLINTON TO DEFINE HIMSELF AGAINST A HIGHLY VISIBLE OPPONENT ROSS PEROT ECONOMICALLY IT WOULD AT LAST ASSOCIATE MR CLINTON WITH THE ONE ELEMENT HUGELY MISSING FROM HIS PROGRAM REAL ECONOMIC GROWTH ON THE POLITICAL SIDE THE ADMINISTRATION'S STRATEGISTS HAVE TRIED TO PORTRAY CONGRESSIONAL REPUBLICANS AS THE PRIMARY ENEMIES OF FORWARD MOTION THAT FAILED BOB DOLE IS NOW RESURRECTED AS AN ALMOSTPOPULAR HOUSEHOLD NAME NOR WE SUSPECT ARE THE PRESIDENT'S RECURRENT ATTACKS ON THE REAGAN YEARS GOING ANYWHERE BUT IF MR CLINTON NEEDS SOME HIGHLY VISIBLE POLITICAL FIGURE TO KICK FROM TIME TO TIME WHO BETTER THAN THE FELLOW WITH THE EVERSMILING FACE IT'S PRETTY CLEAR THAT THE GIANT SUCKING SOUND IS ROSS PEROT HIMSELF SUCKING HOT AIR OVER INTERNATIONAL ECONOMICS IF MR PEROT WANTS TO BUY PERSONAL AIR TIME TO WAVE A TWOBYFOUR AT THE PRINCIPLE OF COMPARATIVE ADVANTAGE AND SUGGEST THAT MEXICO IS A NATION OF TIN SHACKS THAT'S HIS PRIVILEGE BUT IN PUSHING PAST THE BUDGET DEFICIT AND ON INTO XENOPHOBIA MR PEROT HAS GOTTEN HIMSELF OUT ON A LIMB HE'S LOOKING AND SOUNDING LIKE A FLAKE THAT IS LIKE SISTER SOULJAH CANDIDATE CLINTON'S SHARP CRITICISM OF SISTER SOULJAH A SURROGATE FOR JESSE JACKSON'S WING OF THE DEMOCRATIC PARTY WAS THE SORT OF MOVE THAT GOT HIM A REPUTATION BACK THEN FOR BEING ABLE TO RECOGNIZE WHERE HIS BEST INTERESTS LAY MR PEROT IS AN INCOMPARABLY LARGER FIGURE BUT THE DYNAMICS ARE IDENTICAL MR CLINTON WOULD BE SEEN TAKING ON THE BIGGEST KID ON THE BLOCK IN AN HONORABLE CAUSE AND IF HE SHUNTS ASIDE THE NAFTA SIDE AGREEMENTS HE CAN FOR ONCE TAKE A CLEAR POSITION SUPPORT FOR GROWTH IN THE GLOBAL ECONOMY MR PEROT IS PUTTING HIMSELF FORWARD AS THE VOICE OF THE PAST FREE TRADE LETS BILL CLINTON SOUND LIKE THE FUTURE IT REMAINS TO BE SEEN OF COURSE WHETHER THE ADMINISTRATION WILL SUSTAIN LAST WEEK'S FLURRY FOR NAFTA AND SIMILAR STATEMENTS ON BEHALF OF COMPLETING A GATT AGREEMENT WE HOPE HOWEVER THAT IF THE ADMINISTRATION IS BEGINNING TO RECOGNIZE THAT IT HAS A STAKE IN GIVING THE WORLD ECONOMY INCENTIVES TO GROW IT WOULD ALSO SEE THAT THE US ECONOMY NEEDS SIMILAR INCENTIVES INSTEAD OF GIVING THE ECONOMY INCENTIVES MR CLINTON SO FAR HAS BEEN MUDWRESTLING WITH CONGRESS AND THE BUREAUCRACY OVER THE DETAILS OF FEDERAL APPROPRIATIONS ACCOUNTS THE TAX CODE AND PUBLIC HEALTH ECONOMICS NO WONDER HE BOGGED DOWN MR CLINTON'S OPPONENTS OF EVERY POLITICAL STRIPE HAVE BEEN AT THIS SPORT FOR 30 YEARS THEY WIN BECAUSE THEY'RE GOOD AT IT IN MILWAUKEE YESTERDAY THE PRESIDENT DABBLED A BIT AT CENTRISM BOTH BASHING THE LIBERAL INFATUATION WITH ENTITLEMENTS WHILE DUMPING FOR THE UMPTEENTH TIME ON TRICKLE DOWN ECONOMICS DURING THE YEARS OF 18 MILLION NEW JOBS IS THIS WHAT WILL COME TO BE KNOWN AS GERGENISM THE POLITICAL GENIUS OF THE REAGAN TAX CUTS WAS TO MOVE THE KEY ECONOMIC DECISIONS OUTSIDE THE WASHINGTON MUDHOLES THE CLINTON DOMESTIC PROGRAM STILL LACKS A BEYONDWASHINGTON INITIATIVE SUCH AS INDEXING CAPITAL GAINS THAT WOULD LET THE ECONOMY GET TO WORK WHILE HE WRESTLES OVER HEALTH CARE AND THE LIKE IN THE SPIRIT OF THE MOMENT WE'RE INCLINED TO SAY THE BEST SPIN ONE CAN PUT ON THE GERGEN APPOINTMENT IS THAT IT SUGGESTS THAT BILL CLINTON HIMSELF IS STIRRING ALL PRESIDENTS TO SOME EXTENT ARE CAPTIVE TO THEIR AIDES CONGRESS CRONIES AND ORGANIZED CONSTITUENCIES BUT SUCCESSFUL PRESIDENTS MANAGE TO STAY ROOTED IN THE VOTERS WHO SENT THEM TO WASHINGTON IT'S A CRUCIAL DISTINCTION AND NOW THERE'S REASON TO THINK THAT MR CLINTON RECOGNIZES IT 9306020051 930602 DENNY'S PARENT NAACP TO PUSH MINORITIES' PLAN SPARTANBURG SC TW SERVICES INC BRUISED BY RECENT ALLEGATIONS OF RACIAL DISCRIMINATION IN ITS RESTAURANTS SAID IT AGREED WITH THE NAACP TO COMPLETE DEVELOPMENT OF A PROGRAM TO ENHANCE OPPORTUNITIES FOR MINORITIES IN THE COMPANY THE PROGRAM EXPECTED TO BE COMPLETED WITHIN 30 DAYS WILL COVER COMPANY GOALS IN MINORITY FRANCHISE DEVELOPMENT PURCHASING RECRUITING TRAINING AND MARKETING TW SERVICES A UNIT OF TW HOLDINGS INC SAID ITS SEVERAL FOOD AND RESTAURANT OPERATIONS INCLUDING DENNY'S HARDEE'S EL POLLO LOCO CANTEEN AND QUINCY'S FAMILY STEAKHOUSE EMPLOY MORE THAN 120000 PEOPLE IN ALL 50 STATES THE NEW PROGRAM ACCORDING TO TW SERVICES ALSO PROVIDES FOR THE NATIONAL ASSOCIATION FOR THE ADVANCEMENT OF COLORED PEOPLE TO HELP IN RANDOM TESTS OF DENNY'S OUTLETS TO ENSURE THAT CUSTOMERS ARE BEING TREATED FAIRLY LAST MONTH SIX BLACK AGENTS OF THE SECRET SERVICE UNIFORMED DIVISION SUED TW SERVICES ALLEGING THEY WERE DENIED SERVICE AT A DENNY'S RESTAURANT IN ANNAPOLIS MD BECAUSE OF THEIR RACE THE COMPANY SAID IT FIRED THE MANAGER OF THE OUTLET THE SUIT WAS THE THIRD SUCH LEGAL ACTION AGAINST DENNY'S TO SURFACE DURING THE PAST TWO MONTHS 9306020050 930602 MUNI MUNIFICENCE INVESTMENT FIRMS FIND THEIR POLITICAL GIVING IS BECOMING A BURDEN BUT THEY GET HEAVY PRESSURE IF THEY WANT BOND SALES SEC STEPS UP INQUIRIES A NEW PIANO FOR THE GOVERNOR BY CONSTANCE MITCHELL AND MICHAEL SICONOLFI STAFF REPORTERS OF THE WALL STREET JOURNAL NEW YORK WHAT ONCE SEEMED LIKE A SMART BUSINESS STRATEGY IS TURNING SOUR ON WALL STREET EVER SINCE THE 1970S INVESTMENT BANKERS HAVE DONE BUSINESS BY DOLING OUT CAMPAIGN CONTRIBUTIONS TO STATE AND LOCAL POLITICIANS ALL AROUND THE NATION HOPING TO BE REWARDED LATER WITH LUCRATIVE CONTRACTS TO MANAGE MUNICIPALBOND OFFERINGS BUT NOW POLITICIANS HAVE COME TO DEPEND ON THE FIRMS' MONEY THEY EXPECT IT AND THEY AREN'T SHY ABOUT ASKING FOR IT THIS SPRING RIGHT AFTER HELPING SELECT THE FIRMS TO MANAGE 4 BILLION A YEAR OF CITY BOND SALES NEW YORK CITY COMPTROLLER ELIZABETH HOLTZMAN TURNED TO WALL STREET FOR CAMPAIGN MONEY AND PERSONALLY TELEPHONED INVESTMENT BANKERS WITH HER PITCH SHE STARTLED ONE FIRM BY ASKING FOR 6500 FROM EACH OF ITS PUBLICFINANCE PROFESSIONALS THE LEGAL LIMIT IN THE STATE CONFLICT OF INTEREST ABSOLUTELY NOT A SPOKESMAN FOR HER SAYS SHE WAS VERY CAREFUL NOT TO BE IN CONTACT WITH ANY WALL STREET FIRM DURING THE SELECTION PROCESS SHE WAITED UNTIL IT WAS OVER HE SAYS BUT MS HOLTZMAN DID GET THE MONEY AND WALL STREET IS WONDERING WHETHER BY CONTRIBUTING TO SUCH CAMPAIGNS IT HAS CREATED A MONSTER IT'S CORRUPT IT'S UNETHICAL IT'S DISGUSTING SAYS WILLIAM STRAW A PRINCIPAL AT STONEBRIDGE PARTNERS A LOS ANGELES INVESTMENTBANKING BOUTIQUE WHILE NEW SALES OF MUNI BONDS HAVE DOUBLED IN THE PAST DECADE POLITICAL CONTRIBUTIONS HAVE SOARED TOO THE INDUSTRY STARTED THIS THE POLITICIANS DID NOT COMMENTS KENNETH GLOVER A MUNICIPALBOND INVESTMENT BANKER AT WR LAZARD & CO AND A FORMER CAMPAIGN MANAGER FOR THE LATE CHICAGO MAYOR HAROLD WASHINGTON IN SOME CASES IT BECAME A BIDDING WAR IF FIRM A HAD A RELATIONSHIP WITH THE CITY AND FIRM B WANTED THE BUSINESS THEY WOULD SEE WHAT FIRM A HAD CONTRIBUTED AND THEY WOULD DO BETTER BUT IT HAS GOTTEN VERY EXPENSIVE INVESTMENT BANKERS PROBABLY NEVER EXPECTED TO BECOME AMONG THE LARGEST CONTRIBUTORS TO MANY LOCAL AND STATE ELECTION CAMPAIGNS THEY GROUSE THAT THE ENTRY LEVEL CONTRIBUTION NECESSARY TO BE CONSIDERED FOR MUNICIPALBOND BUSINESS IN MAJOR METROPOLITAN AREAS NOW RUNS ABOUT 50000 PER FIRM ASIDE FROM MORAL CONSIDERATIONS YOU HAVE TO WONDER WHAT THE COST BENEFITS ARE SAYS MARK D SCHWARTZ A MUNICIPALBOND LAWYER AND FORMER BANKER AT PRUDENTIAL SECURITIES INC A UNIT OF PRUDENTIAL INSURANCE CO OF AMERICA WALL STREET IS ALL THE MORE UPSET BECAUSE WITH OVERALL OPERATING COSTS SOARING AND COMPETITION INTENSIFYING A TYPICAL MUNICIPALBOND OFFERING IS DRAMATICALLY LESS PROFITABLE THAN IT WAS EIGHT YEARS AGO MR STRAW SAYS UNTIL THE MID1980S AN INVESTMENT BANK MIGHT POCKET 3 MILLION OR MORE FOR MANAGING A 100 MILLION MUNICIPALBOND OFFERING NOW IT GETS 1 MILLION OR LESS INVESTMENT BANKERS SAY EVEN THOUGH POLITICIANS IN MOST STATES CAN LEGALLY SOLICIT CAMPAIGN CONTRIBUTIONS FROM SECURITIES FIRMS WITH WHICH THEIR CITIES DO BUSINESS SUCH INCESTUOUS DEALINGS DON'T SIT WELL WITH MANY REGULATORS INCLUDING THE SECURITIES AND EXCHANGE COMMISSION THERE ARE A NUMBER OF POTENTIAL SITUATIONS OF CONFLICT OF INTEREST WE ARE LOOKING INTO SAYS RICHARD ROBERTS AN SEC COMMISSIONER YET THE SEC WHICH IS KNOWN TO BE INVESTIGATING A TURNPIKEAUTHORITY BOND SALE IN NEW JERSEY WILL HAVE DIFFICULTY CRACKING DOWN BECAUSE OF THE MANY GRAY AREAS IN THE LIGHTLY REGULATED NATIONWIDE MARKET ALSO INVOLVED ARE THE NATION'S TAXPAYERS WHO INDIRECTLY PAID NEARLY 3 BILLION TO WALL STREET LAST YEAR FOR UNDERWRITING SELLING TO INVESTORS 280 BILLION OF NEW MUNICIPAL BONDS USED TO BUILD SCHOOLS REPAIR ROADS AND FINANCE MANY OTHER PUBLIC PROJECTS CAMPAIGN CONTRIBUTIONS HAVE BECOME SO CRUCIAL TO WINNING MUNICIPALFINANCE BUSINESS THAT MANY FIRMS PROD THEIR INVESTMENT BANKERS TO PAY UP IN A FEBRUARY 1992 MEMO TO BANKERS AT SMITH BARNEY HARRIS UPHAM & CO A UNIT OF PRIMERICA CORP WILLIAM MILLS A SENIOR INVESTMENT BANKER WROTE BLUNTLY IT IS IN THE INTEREST OF THE FINANCIAL INSTITUTIONS DIVISION TO SUPPORT THOSE CANDIDATES FOR PUBLIC OFFICE AT ALL LEVELS OF GOVERNMENT WHO ARE RESPONSIVE TO THE NEEDS OF OUR DIVISION SMITH BARNEY AND OUR INDUSTRY THE MEMO SAID THE INVESTMENT BANKERS WOULD BE PERIODICALLY ASKED FOR 250 CHECKS ACCORDING TO AN ALPHABETICAL ROTATION POLITICAL CONTRIBUTIONS CAN TAKE MANY FORMS IN KENTUCKY SOME SECURITIESFIRM MONEY WAS SPENT ON A NEW PIANO FOR A FORMER GOVERNOR MARTHA LAYNE COLLINS HER HUSBAND BILLY COLLINS IS FACING TRIAL IN FEDERAL COURT IN FRANKFORT KY IN AUGUST FOR ALLEGEDLY EXTORTING MONEY AND GIFTS FROM TWO SECURITIES FIRMS SEEKING TO SELL THE STATE'S BONDS DONALDSON LUFKIN & JENRETTE A UNIT OF EQUITABLE COS AND THE SMALLER CRANSTON SECURITIES CO THE INDICTMENT CHARGES AMONG OTHER THINGS THAT MR COLLINS FORCED SOME DLJ EMPLOYEES TO AGREE TO PURCHASE A 650000 STAKE IN HIS THOROUGHBREDHORSE PARTNERSHIP IN ADDITION DLJ PAID FOR A 35000 CUSTOMBUILT PIANO THAT MR COLLINS GAVE HIS WIFE A DLJ SPOKESWOMAN SAYS THE FIRM GAVE THE PIANO TO THE STATE OF KENTUCKY THE PIANO WAS DESIGNED TO MATCH THE DRAPERIES IN THE GOVERNOR'S OFFICIAL RESIDENCE HOWEVER GOV COLLINS TOOK THE PIANO WITH HER WHEN SHE LEFT OFFICE NEITHER DLJ NOR MRS COLLINS HAS BEEN ACCUSED OF WRONGDOING THROUGH HIS ATTORNEY MR COLLINS SAYS HE DID NOTHING UNETHICAL OR ILLEGAL THE ATTORNEY ADDS THAT THE DLJ EMPLOYEES BOUGHT THE THOROUGHBRED PARTNERSHIPS BECAUSE THEY CONSIDERED THEM GOOD INVESTMENTS DLJ AGREES WITH THIS ASSESSMENT POLITICAL CONNECTIONS CAN HELP CATAPULT SMALL FIRMS INTO POWERFUL POSITIONS ALTHOUGH PITTSBURGH'S RUSSELL REA ZAPPALA & GOMULKA HOLDINGS INC HAS ONLY A SMALL STAFF RRZ LEADMANAGED SALES OF 1 BILLION OF MUNI BONDS LAST YEAR AND WAS THE THIRDBIGGEST UNDERWRITER OF TAXEXEMPT SECURITIES IN PENNSYLVANIA THE NATION'S LARGEST MUNI BOND UNDERWRITER MERRILL LYNCH & CO RANKED FOURTH IN THE STATE FOR SEVEN YEARS RRZ HAS BEEN LEAD UNDERWRITER FOR ALL BONDS SOLD BY THE PENNSYLVANIA TURNPIKE COMMISSION INCLUDING A 507 MILLION OFFERING LAST AUGUST HOW DID THE 15YEAROLD FIRM GROW SO QUICKLY WE DO BUSINESS BETTER MORE EFFICIENTLY AND MORE EFFECTIVELY THAN OTHER FIRMS A SPOKESMAN SAYS BUT COMPETITORS CONTEND RRZ WINS BUSINESS LARGELY BECAUSE OF ITS CLOSE TIES TO STATE POLITICIANS AND BECAUSE OF THE CLOUT OF THE WELLCONNECTED ZAPPALA FAMILY COMPETING UNDERWRITERS CITE FOR EXAMPLE RRZ'S RELATIONSHIP WITH JAMES J DODARO A PENNSYLVANIA TURNPIKE COMMISSIONER WHO IS A LONGTIME FRIEND OF CHARLES ZAPPALA THE FIRM'S CHAIRMAN MR DODARO DIDN'T RETURN PHONE CALLS SEEKING COMMENT INVESTIGATORS NOW ARE QUESTIONING WHETHER MR ZAPPALA'S BROTHER STATE SUPREME COURT JUSTICE STEVEN ZAPPALA ALSO MAY HAVE HELPED THE SMALL SECURITIES FIRM ACCORDING TO THE STATE ATTORNEY GENERAL'S OFFICE TWO SPECIAL PROSECUTORS HAVE BEEN HIRED TO DETERMINE AMONG MANY OTHER ALLEGATIONS UNRELATED TO BOND OFFERINGS OR RRZ WHETHER JUSTICE ZAPPALA USED HIS INFLUENCE TO STEER MUNICIPAL UNDERWRITING BUSINESS TO THE FIRM JUSTICE ZAPPALA SAYS THROUGH A SPOKESMAN THAT THE ALLEGATIONS HAVE NO MERIT RRZ ITSELF ISN'T A TARGET OF THE INVESTIGATION AND JOE MCDONOUGH ITS OUTSIDE ATTORNEY SAYS IT NEVER DID ANYTHING IMPROPER TO WIN BUSINESS I DON'T KNOW ANY FIRM IN THE MUNICIPALBOND BUSINESS THAT DOES NOT MAKE POLITICAL CONTRIBUTIONS HE ADDS SAYING THAT RRZ MAKES POLITICAL CONTRIBUTIONS IS LIKE SAYING THAT MOST LAWYERS HAVE PASSED THE BAR EXAM WHY SHOULD TAXPAYERS CARE WHO UNDERWRITES A BOND IT MAY NOT AFFECT YIELDS VERY MUCH BUT WHEN POLITICIANS GET INVOLVED IN PICKING UNDERWRITERS TAXPAYERS MAY END UP PAYING BIGGER BILLS THAT IS WHAT HAPPENED TO THE PENNSYLVANIA INTERGOVERNMENTAL COOPERATIVE AUTHORITY A STATE AGENCY CREATED TO RESCUE PHILADELPHIA FROM FINANCIAL DISTRESS WHEN IT SOLD 475 MILLION OF BONDS LAST SPRING THE LEADERS OF THE STATE LEGISLATURE NOT THE AUTHORITY ITSELF DREW UP THE LIST OF FIRMS THAT THEY WANTED TO BE A PART OF PICA'S BOND SALE THE LIST INCLUDED 19 INVESTMENT BANKING FIRMS FIVE LAW FIRMS AND THREE FINANCIAL ADVISERS SHARING 43 MILLION IN FEES SO MANY FIRMS WERE INVOLVED THAT BY SOME ESTIMATES THE COST WAS 10 HIGHER THAN IF A SMALLER GROUP HAD BEEN USED YES THE DEAL COULD HAVE BEEN DONE WITH FEWER FIRMS SAYS RONALD HENRY PICA'S EXECUTIVE DIRECTOR NEVERTHELESS HE ADDS THE RESULTS WERE VERY FAVORABLE TO THE AUTHORITY AND THE CITY AND THE QUALITY OF THE WORK WAS VERY GOOD LAST YEAR AN ARBITRATION CASE BROUGHT IN PHILADELPHIA BY MR SCHWARTZ THE FORMER PRUDENTIAL SECURITIES BANKER SHED MORE LIGHT ON THE MUNICIPALBOND BUSINESS IN THE CASE SEVERAL FORMER INVESTMENT BANKERS AT THE FIRM ALLEGED THAT IT BLATANTLY STRONGARMED THEM TO CONTRIBUTE TO POLITICIANS TO WIN BUSINESS THE ARBITRATION PANEL LATE LAST YEAR DIDN'T RULE ON THAT ASPECT OF THE CASE BUT REJECTED A CLAIM THAT MR SCHWARTZ HAD BEEN UNFAIRLY FIRED THE CASE UNCOVERED A FEBRUARY 1989 MEMO FROM FRANK C PAUL THEN THE ACTING MANAGER OF PRUDENTIAL'S CHICAGO OFFICE IN THE MEMO MR PAUL SAID HE HAD BEEN TOLD BY JOHN GLIDDEN THEN HEAD OF PRUDENTIAL'S PUBLIC FINANCE DEPARTMENT THAT ITS MUNICIPALBOND PROFESSIONALS WERE EXPECTED TO TURN OVER A FIXED PERCENTAGE OF THEIR ANNUAL PAY TO VARIOUS POLITICAL CAMPAIGNS INVESTMENT BANKERS WHO EARNED 50000 TO 100000 WOULD HAVE TO CONTRIBUTE 15 THE MEMO SAID THOSE MAKING 100000 TO 175000 WOULD GIVE 2 AND THOSE EARNING MORE THAN 175000 WOULD FORK OVER 25 SOME PRUDENTIAL EMPLOYEES BALKED INCLUDING HARRIETT STANLEY A FORMER PRUDENTIAL INVESTMENT BANKER SHE TESTIFIED THAT WHEN MR GLIDDEN MET WITH HER IN 1989 TO DISCUSS HER BONUS HE ASKED THAT 15 BE RELINQUISHED FOR CAMPAIGN CONTRIBUTIONS AND SHE SAID OH JOHN I MAKE FAIRLY HEAVY POLITICAL CONTRIBUTIONS MS STANLEY WHO NOW RUNS THE HADLEY GROUP A MASSACHUSETTS FINANCIALADVISORY FIRM TESTIFIED LATER THAT SHE BELIEVED MR GLIDDEN'S REQUEST CROSSED THE LINE BUT DIDN'T COMPLAIN TO HER SUPERIORS IF ONE REPORTED EVERY TIME IN PUBLIC FINANCE THAT SOMEONE APPROACHED OR CROSSED THE LINE THAT'S ALL YOU'D SPEND YOUR TIME DOING MS STANLEY TESTIFIED MR GLIDDEN COULDN'T BE REACHED FOR COMMENT BUT HE TESTIFIED THAT HE NEVER ORDERED ANY POLITICAL CONTRIBUTIONS FROM EMPLOYEES AND THAT THERE WAS NEVER ANY RETRIBUTION FOR NOT CONTRIBUTING A PRUDENTIAL SPOKESMAN SAYS THERE NEVER WAS A MANDATED POLICY OF CONTRIBUTIONS FOR EMPLOYEES AND THERE ISN'T ONE AT THIS POINT IN WASHINGTON THE SEC'S MR ROBERTS WHO ONCE WORKED FOR A LAW FIRM THAT ADVISED MUNICIPALBOND ISSUERS IS PRESSING THE GOVERNMENT TO CLAMP DOWN ON POLITICIANS AS LONG AS THEY HELP DECIDE WHICH FIRMS ARE CHOSEN TO SELL MUNICIPAL BONDS HE SAYS IT'S A PROCESS WHICH DOES LEND ITSELF TO CAMPAIGN ACTIVITY AND COULD AFFECT THE INTEGRITY OF THE MARKET LAWYERS SAY THE SEC HOPES TO GAIN THE ATTENTION OF CONGRESS BY BRINGING SOME HIGHLY PUBLICIZED AND CLEARCUT CASES OF POLITICAL PATRONAGE AND FRAUD SEVERAL LAWYERS AND CONSUMER ADVOCATES SPECIALIZING IN PUBLIC FINANCE SAY THEY WERE RECENTLY CONTACTED BY SEC OFFICIALS SEEKING TO FIND OUT WHERE A CASE MIGHT BE WARRANTED ONE SUCH LAWYER IS MICHAEL REDIKER A PARTNER AT THE BIRMINGHAM ALA LAW FIRM OF RITCHIE & REDIKER HE SAYS REGULATORS ARE LOOKING FOR CASES IN WHICH A HIDDEN CONFLICT OF INTEREST MISLED INVESTORS IT'S A FINE LINE HE SAYS THERE ARE MANY TIMES WHERE THE CONFLICT OF INTEREST AND POLITICAL PATRONAGE DON'T POSE A LEGAL PROBLEM BUT THE FAILURE TO DISCLOSE A CONFLICT OF INTEREST MAY AMOUNT TO FRAUD IF SOMEONE HIDES FACTS THAT WOULD BE IMPORTANT TO INVESTORS IN DETERMINING WHETHER OR NOT THEY WANT TO INVEST THAT WOULD GIVE THE BASIS FOR THE SEC TO BRING AN INVESTIGATION AND AN ACTION SOME SECURITIES EXECUTIVES FEAR THAT IF THE INDUSTRY DOESN'T CHANGE ITS PRACTICES WASHINGTON WILL DRIVING UP THE COST OF DOING BUSINESS IT WILL TRIGGER A REACTION THAT'S TOO RASH AND THAT WILL HURT ISSUERS AND TAXPAYERS MR SCHWARTZ SAYS THE 12 TRILLION MUNI MARKET IS MUCH LESS CLOSELY WATCHED BY FEDERAL REGULATORS THAN OTHER SECURITIES MARKETS PARTLY BECAUSE THE TOWER AMENDMENT ENACTED IN 1975 EXPRESSLY BARS THE SEC AND THE SELFREGULATORY MUNICIPAL SECURITIES RULEMAKING BOARD OR MSRB FROM FORCING MUNICIPAL ISSUERS TO DISCLOSE CERTAIN TYPES OF FINANCIAL INFORMATION PRIOR TO SECURITIES SALES SOME CITIES AND TOWNS MAKE SUCH DISCLOSURES ANYWAY MR ROBERTS HAS SUGGESTED HOWEVER THAT THE SEC MAY AGAIN PRESS CONGRESS FOR TOUGH NEW RULES INCLUDING DISCLOSURE OF CAMPAIGN CONTRIBUTIONS TO AVERT SUCH A MOVE THE MSRB RECENTLY SAID IT IS CONSIDERING REQUIRING SECURITIES DEALERS TO DISCLOSE CAMPAIGN CONTRIBUTIONS PRIOR TO ANY UNDERWRITING ACTIVITY SUCH DISCLOSURE THE MSRB BELIEVES WOULD HELP ENSURE THAT POLITICAL CONTRIBUTIONS DON'T INFLUENCE WHO GETS PICKED TO LEAD A BOND OFFERING EVEN WHEN STATES TRY TO CRACK DOWN INVESTMENT BANKERS CAN FIND LOOPHOLES FOR EXAMPLE AN EFFORT BY FLORIDA GOV LAWTON CHILES TO LIMIT POLITICAL PATRONAGE ON STATE MUNICIPAL BONDS HAS HAD LITTLE EFFECT ON LOCAL BONDS AS IN MANY AREAS OF THE US IT ISN'T UNUSUAL IN DADE COUNTY FLA FOR LARGE WALL STREET FIRMS TO HIRE WELLCONNECTED LOCAL POLITICAL CONSULTANTS TO HELP THEM GET BUSINESS IN THE PAST 18 MONTHS 23 CONSULTANTS HAVE REGISTERED WITH THE COUNTY TO HELP FIRMS WIN BOND ISSUES THAT TOTALED 841 MILLION LAST YEAR ONE CONSULTANT PHILIP HAMERSMITH SAYS PRUDENTIAL SECURITIES PAID HIM 40000 LAST YEAR TO HELP IT LAND A LEADUNDERWRITING POSITION FOR A 106 MILLION ISSUE ACCORDING TO MR HAMERSMITH WHO RECENTLY WAS A CAMPAIGN CONSULTANT FOR SOME OF THE COUNTY COMMISSIONERS HE WAS PAID A 5000 RETAINER PLUS ANOTHER 35000 SUCCESS FEE AFTER THE COMPANY WAS NAMED LEAD UNDERWRITER ON THE BOND ISSUE MR HAMERSMITH SAYS HE ISN'T A MUNICIPAL BOND EXPERT BUT IS FAMILIAR WITH THE SELECTION PROCESS AND THE PLAYERS HE ADDS THAT HE IS NOW TRYING TO HELP PRUDENTIAL THROUGH HIS LOBBYING EFFORTS TO WIN THE RIGHT TO MANAGE A PLANNED 452 MILLION BOND ISSUE THE COUNTY'S LARGEST EVER THE COUNTY'S FINANCE COMMITTEE RECOMMENDED THAT PRUDENTIAL BE NAMED LEAD UNDERWRITER THE COUNTY BOARD STILL HASN'T VOTED ON THE MATTER PRUDENTIAL CONFIRMS THAT MR HAMERSMITH HAS WORKED AS A CONSULTANT FOR IT IN THE PAST BUT IT WON'T CONFIRM THAT HE STILL DOES IN CALIFORNIA WHERE JESSE UNRUH THE LATE STATE TREASURER AND POWER BROKER REFINED FUND RAISING INTO AN ART FORM TWO DECADES AGO THINGS HAVE CHANGED A BIT BUT INVESTMENT BANKS ARE STILL BIG CAMPAIGN DONORS TODAY CALIFORNIA STATE TREASURER KATHLEEN BROWN HAS A REPUTATION AS ONE OF THE NATION'S MOST AGGRESSIVE NEGOTIATORS FOR MUNICIPALBOND OFFERINGS SHE EVEN ISSUED HER OWN GUIDELINES ON SELECTING BOND UNDERWRITERS AND AVOIDING CONFLICTS OF INTEREST BUT OF THE TOP 20 CONTRIBUTORS TO HER CAMPAIGN FUND OVER THE PAST TWO YEARS NEARLY HALF ARE SECURITIES FIRMS WITH DONATIONS TOTALING 96500 ACCORDING TO COMMON CAUSE OF CALIFORNIA STATES SUCH AS NEW JERSEY ARE APPLYING QUICKFIX SOLUTIONS TO THE PROBLEM OF POLITICAL PATRONAGE BY REQUIRING THAT ALL STATE BOND OFFERINGS BE PUT OUT FOR COMPETITIVE BID AN AUCTION PROCESS THAT FORCES SECURITIES FIRMS TO COMPETE AGAINST ONE ANOTHER AT A PREARRANGED TIME TO BUY A MUNICIPALITY'S BONDS THE FIRM MAKING THE HIGHEST BID IN THE BOND MARKET THAT'S THE LOWEST BOND YIELD WINS THE UNDERWRITING PROPONENTS SAY COMPETITIVE BIDDING IS FREE OF POLITICAL INFLUENCE BUT MOST MUNICIPAL OFFICIALS SAY MOST MUNI BONDS SIMPLY CAN'T BE SOLD THAT WAY THEY PREFER NEGOTIATED TRANSACTIONS IN WHICH A CITY OR STATE PICKS ITS UNDERWRITERS AHEAD OF A BOND SALE WORKS CLOSELY WITH THEM TO STRUCTURE THE OFFERING AND BENEFITS BY GETTING MORE SERVICE AND EXPERTISE FROM THEM SECURITIES FIRMS ALSO PREFER NEGOTIATED DEALS WHICH PRODUCE HIGHER FEES THAN COMPETITIVE ONES DO FOR ALL THE REFORM EFFORTS SOME INVESTMENT BANKERS DOUBT THAT THE MUNI MARKET WILL SOON BE CLEANSED OF MISDEEDS THE MORE THEY TRY TO LEGISLATE MORALITY THE MORE THE GOOD GUYS GET SQUEEZED OUT AND SLEAZY GUYS TAKE OVER SAYS ANITA MITCHELL NATIONAL SALES MANAGER AT SMITH MITCHELL SECURITIES A SMALL INVESTMENT BANK IN WEST PALM BEACH FLA IF I'M PLAYING BY THE RULES AND THE OTHER GUYS ARE GOING THROUGH THE BACK DOOR THEY'RE STILL GOING TO GET THE BUSINESS NOT ME THOMAS T VOGEL JR CONTRIBUTED TO THIS ARTICLE 9306020049 930602 HUGHES SUPPLY SETS CREDIT PACT ORLANDO FLA HUGHES SUPPLY INC SAID IT CLOSED A 100 MILLION REVOLVINGCREDIT FACILITY WITH SUNTRUST CORPORATE FINANCE A UNIT OF SUNTRUST BANKS INC IN ATLANTA HUGHES A DISTRIBUTOR OF ELECTRICAL AND PLUMBING SUPPLIES AND A MAKER OF LIGHTING EQUIPMENT SAID THE FACILITY WHICH INCLUDES A SYNDICATE COMPRISING SIX BANKS REPLACES SEPARATE REVOLVINGLOAN AGREEMENTS WITH THREE OF THE INSTITUTIONS THE NEW FACILITY WILL ALSO BE USED FOR GENERAL CORPORATE PURPOSES 9306020048 930602 INTERNATIONAL JAPANESE VIDEOCASSETTE EXPORTS TOKYO JAPANESE EXPORTS OF VIDEOCASSETTE RECORDERS IN APRIL FELL 25 FROM A YEAR EARLIER TO 1100000 UNITS THE ELECTRONICS INDUSTRY ASSOCIATION OF JAPAN SAID APRIL WAS THE 26TH MONTH IN A ROW IN WHICH EXPORTS DROPPED FROM YEAREARLIER LEVELS HOWEVER DOMESTIC SHIPMENTS OF VCRS ROSE 45 IN APRIL TO 371000 UNITS THE FIRST YEARONYEAR RISE IN NINE MONTHS 9306020047 930602 NORTHWEST PILOTS DENOUNCE ACCORD BY OTHER UNIONS BY ROBERT L ROSE STAFF REPORTER OF THE WALL STREET JOURNAL THE PILOTS UNION AT NORTHWEST AIRLINES DENOUNCED THE CONCESSION AGREEMENT BETWEEN THE AIRLINE AND TWO OTHER UNIONS AND SET UP STRATEGY MEETINGS TO DISCUSS THE PILOTS' NEXT STEP IN A LETTER TO ITS 5000 MEMBERS THE NORTHWEST UNIT OF THE AIR LINE PILOTS ASSOCIATION ACCUSED THE MACHINISTS AND TEAMSTERS UNIONS OF ATTEMPTING TO CUT THEIR OWN DEALS AT OUR EXPENSE AND NORTHWEST'S OWNERS OF TRYING TO IMPOSE AN ALTOGETHER INADEQUATE AND UNACCEPTABLE DEAL ON US THE HARSH COMMENTS INDICATE THAT THE CARRIER IS FAR FROM SECURING A COMPREHENSIVE AGREEMENT INVOLVING CONCESSIONS BY BOTH ITS LABOR UNIONS AND ITS LENDERS THEY ALSO SHOW A DEEP AND BITTER SPLIT AMONG THREE UNIONS THAT UNTIL MARCH TOOK A UNITED STAND WITH THREE SMALLER UNIONS IN CONCESSION TALKS WITH NORTHWEST LAST WEEK THE ST PAUL MINN UNIT OF CLOSELY HELD WINGS HOLDINGS INC ANNOUNCED DETAILS OF AN AGREEMENT WITH THE MACHINISTS AND TEAMSTERS' UNIONS THAT WOULD SAVE 428 MILLION IN LABOR COSTS OVER THREE YEARS NORTHWEST OFFICIALS ALSO SAID THEY WERE OPTIMISTIC THAT IF LABOR APPROVED THE CONCESSIONS THE AIRLINE'S LENDERS WOULD RESCHEDULE LOANS TO REDUCE TO 500 MILLION FROM 204 BILLION THE AMOUNT DUE FROM 1994 TO 1996 BUT THE AGREEMENT BETWEEN THE AIRLINE AND THE INTERNATIONAL ASSOCIATION OF MACHINISTS AND THE TEAMSTERS APPEARED TO THE PILOTS IN FOR EXAMPLE IT CALLS FOR 365 MILLION IN SAVINGS FROM THE PILOTS EVEN THOUGH THE PILOTS HAVE SAID THEY'D BE WILLING TO GIVE UP ONLY 300 MILLION THE AGREEMENT ALSO DESIGNATED A BOARD SEAT FOR EACH OF THE THREE BIG UNIONS AND THE PERCENTAGE OWNERSHIP THEY WOULD GET IN RETURN FOR CONCESSIONS WITH 30 OF THE COMPANY'S STOCK TO GO TO UNION MEMBERS IN RETURN FOR THE CONCESSIONS SIMPLE MATH SUGGESTED THE PILOTS WOULD GET 12 TO 13 OF THE TOTAL SHARES OUTSTANDING BECAUSE THEY AREN'T GIVING UP AS MUCH THE MACHINISTS WOULD GET 117 AND THE FLIGHT ATTENDANTS REPRESENTED BY THE TEAMSTERS WOULD GET 27 NONCONTRACT EMPLOYEES WOULD GET 28 OC MILLER CHAIRMAN OF THE PILOTS' EXECUTIVE COUNCIL AT NORTHWEST COMPLAINED IN HIS FOURPAGE LETTER THAT IT IS DOWNRIGHT OFFENSIVE HOW BRAZENLY AND SELFSERVINGLY THESE AGREEMENTS ATTEMPT TO DICTATE ALPA'S ROLE IN THIS PROCESS MR MILLER ALSO COMPLAINED THAT NORTHWEST IS TRYING TO FORCE PILOTS TO GIVE UP MORE THAT THE LOAN RESTRUCTURING PROPOSAL MERELY BUYS TIME UNTIL THE END OF 1996 AND THAT PROVISIONS FOR AN EQUITY STAKE AND BOARD SEATS ARE INADEQUATE NORTHWEST OFFICIALS RESPONDED THAT THEIR PROPOSAL ADDRESSES MANY OF THE CONCERNS THE PILOTS HAVE HAD AND THAT NORTHWEST STILL HOPES TO HAVE AGREEMENTS WITH ALL ITS UNIONS BY THE END OF JUNE A SPOKESWOMAN FOR THE PILOTS SAID THE UNION AND THE COMPANY MIGHT STILL HAVE A NEGOTIATING SESSION THIS WEEK BUT THEY APPEARED TOO FAR APART TO MAKE MUCH PROGRESS INDEED THE PILOTS HAVE CARVED OUT MUCH OF JUNE FOR MEETINGS TO DISCUSS WHAT TO DO NEXT 9306020045 930602 REVIEW & OUTLOOK EDITORIAL GERGEN'S TODO LIST DAVID GERGEN SAYS HE JOINED THE LEFTLISTING HMS CLINTON ONLY AFTER HE WAS CONVINCED THE PRESIDENT REALLY WANTS TO BE A CENTRIST THIS SOUNDS GOOD TO US SO IN A SPIRIT OF WELL SHARED SACRIFICE WE'RE HAPPY TO HELP MR GERGEN COMPILE A LIST OF WAYS TO MOVE HIS NEW BOSS BACK TO EVEN KEEL WE DEAL WITH ECONOMIC POLICY ABOVE SEE RELATED EDITORIAL REVIEW & OUTLOOK EDITORIAL NEW MORNING WSJ JUNE 2 1993 BUT IT'S WORTH ADDING THAT MR GERGEN HIMSELF SAYS THE PRESIDENT SHOULD POSTPONE HIS HEALTH CARE PROPOSAL UNTIL HIS TAX BILL PASSES THIS INSIGHT RECOGNIZES THAT THE CLINTON HEALTH CARE TASK FORCE HAS BECOME AN ALBATROSS AROUND THE ECONOMY BUSINESSES THAT NOW EXPECT TO BE HIT WITH A 7 PAYROLL TAX OR A NEW BROAD HEALTH MANDATE AREN'T EAGER TO HIRE NEW WORKERS A POSTPONEMENT WOULD GIVE MR CLINTON TIME TO DROP THE NEW DEAL II OVERTONES OF HIS EMERGING PLAN PROMOTE IRA MAGAZINER TO SOMETHING HARMLESS LIKE LONGRANGE PLANNING AND THEN PROPOSE A DRASTICALLY SCALED DOWN REFORM IN SHORT SOMETHING THAT IS ACTUALLY DOABLE A SMALLER PLAN THAT MAKES IT POSSIBLE TO INSURE HARD CASES THAT BEGINS TO COVER THE UNINSURED AND INTRODUCES A MEASURE OF INDIVIDUAL SELFRATIONING THROUGH PRICES WOULD BY ITSELF BE A LANDMARK ACHIEVEMENT ADD TO MR GERGEN'S TODO LIST A RECONCILIATION WITH MR CLINTON'S ONETIME FRIEND AT MERCK CEO ROY VAGELOS SOMETHING ELSE MR GERGEN HAS TO DO IS STEER HIS BOSS AWAY FROM FADDISH CULTURAL LIBERALISM THAT MEANS A COMPROMISE ON GAYS IN THE MILITARY OF THE SORT SAM NUNN IS OFFERING MR CLINTON'S PUBLIC STANDING WOULD RISE AS PEOPLE SAW HIM RESISTING THE MOST ACTIVIST GAY LOBBIES WHICH WILL NEVER BE SATISFIED ALSO TO DO FIX THE APPOINTMENT PROCESS WHICH HAS SADDLED MR CLINTON WITH A LIBERAL RAINBOW COALITION A MODERATE SUPREME COURT NOMINEE WOULD IMPRESS VOTERS WHO WANTED A NEW DEMOCRAT ON THE OTHER HAND MR CLINTON'S ENEMIES LOOOOOVE DIVERSITY THEY HOPE HE NOMINATES JUDGE JON NEWMAN THE BACKSTABBER OF CLARENCE THOMAS OR STICKS WITH HIS POLARIZING CHOICES OF QUOTA ACTIVIST LANI GUINIER FOR A CIVIL RIGHTS POST OR POLITICAL CORRECTNESS CZAR SHELDON HACKNEY FOR THE HUMANITIES ENDOWMENT TO MOVE TO THE CENTER THE PRESIDENT WILL NEED MORE THAN ONE OR TWO PEOPLE IN THE WHITE HOUSE WHO KNOW WHAT THE CENTER LOOKS LIKE WE'D NOMINATE THE SO FAR UNDERREPRESENTED VOICES AT THE DEMOCRATIC LEADERSHIP COUNCIL A MINOR TODO THE LOGGING MESS IN THE NORTHWEST OWLS VS PERSONS BEFORE THE GERGEN ANNOUNCEMENT THIS WAS A TOUGH CALL IN THE WHITE HOUSE ON FOREIGN POLICY MR CLINTON MIGHT BE TOLD THERE IS MORE TO DO IN ASIA THAN IN BOSNIA THAT WOULD MEAN ABOVE ALL TRYING TO PREVENT JAPAN FROM SPINNING OUT OF THE US SECURITY PACT AND MAKING SURE THAT NORTH KOREA PAYS A PRICE IF IT CONTINUES TO BUILD NUCLEAR WEAPONS AH NOW HERE'S SOMETHING THAT IS GOING TO BE REALLY TOUGH TO DO WHITE HOUSE PERSONNEL THE TRAVEL OFFICE FIASCO BEGUN BY FREELANCING WHITE HOUSE AIDES SUGGESTS THAT SOMEONE NEEDS TO RESTORE ORDER AND DISCIPLINE MR GERGEN COULD START BY PULLING THE ROAMANYWHERE WHITE HOUSE PASSES OF SUSAN THOMASES HARRY THOMASON AND OTHER PRESIDENTIAL PALSWITHOUTPORTFOLIO A PRESIDENT NEEDS UNOFFICIAL ADVISERS BUT WHEN IT COMES TO CALLING IN THE FBI THERE ARE GOOD REASONS FOR HAVING A KNOWN CHAIN OF COMMAND JANET RENO CAME A LONG WAY TO BEAR THAT RESPONSIBILITY THE POINT HERE IS ACCOUNTABILITY ALL OF THIS WE OFFER IN THE SPIRIT THAT IT'S NOT TOO LATE IN THE CLINTON PRESIDENCY TO GET THINGS RIGHT AND AS A TWOTERM PRESIDENT USED TO SAY WE DON'T CARE WHO GETS THE CREDIT 9306020044 930602 BUSINESS BRIEF HUNTINGTON BANCSHARES AGREES TO BUY RAILROADMEN'S FEDERAL IN INDIANAPOLIS COLUMBUS OHIO HUNTINGTON BANCSHARES INC BOOSTING ITS PRESENCE IN INDIANAPOLIS AGREED TO ACQUIRE RAILROADMEN'S FEDERAL SAVINGS & LOAN ASSOCIATION IN A STOCK TRANSACTION VALUED AT 886 MILLION ANALYSTS SAID HUNTINGTON NEEDS TO BUILD UP ITS INDIANAPOLIS OPERATIONS BECAUSE IT FACES GROWING COMPETITION FROM LARGE SUPERREGIONAL COMPETITORS INCLUDING BANC ONE CORP COLUMBUS NATIONAL CITY CORP CLEVELAND AND NBD BANCORP DETROIT WHICH ARE INCREASING THEIR OPERATIONS IN INDIANA IT'S GOOD FOR HUNTINGTON TO INCREASE THE SCALE OF THEIR OPERATION IN INDIANAPOLIS SAID MICHAEL MILUNOVICH ANALYST WITH ROBERT W BAIRD & CO MILWAUKEE IT'S A TOUGH MARKET AND THEY'RE UP AGAINST SOME FORMIDABLE COMPETITION THERE THIS BOOSTS THEIR ASSET SIZE IN INDIANA FROM 400 MILLION TO A LITTLE OVER 1 BILLION HUNTINGTON COMMON STOCK WILL BE EXCHANGED FOR ALL RAILROADMEN'S SHARES OUTSTANDING IN A TRANSACTION THAT WILL BE ACCOUNTED FOR AS A POOLING OF INTERESTS RAILROADMEN'S HOLDERS WILL RECEIVE 41 OF HUNTINGTON STOCK FOR EACH OF THE THRIFT'S 216 MILLION SHARES RAILROADMEN'S HOLDERS WILL RECEIVE NO LESS THAN 143 SHARES NOR MORE THAN 175 SHARES OF HUNTINGTON COMMON IN THE TAXFREE EXCHANGE THE PRICE AMOUNTS TO 206 TIMES RAILROADMEN'S FULLY DILUTED BOOK VALUE OR ABOUT 11 TIMES THE THRIFT'S ESTIMATED EARNINGS A PRICE ANALYSTS SAID IS REASONABLE HUNTINGTON WITH OPERATIONS IN OHIO FLORIDA INDIANA KENTUCKY MICHIGAN PENNSYLVANIA AND WEST VIRGINIA HAS A TOTAL OF 144 BILLION IN ASSETS HUNTINGTON'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER FRANK WOBST SAID DILUTION FROM THE TRANSACTION WILL BE LESS THAN 1 OF EARNINGS THIS YEAR AND ADDITIVE TO HUNTINGTON'S EARNINGS IN 1994 IN OVERTHECOUNTER TRADING YESTERDAY HUNTINGTON COMMON CLOSED AT 2575 DOWN 375 CENTS WHILE RAILROADMEN'S JUMPED 925 OR 32 TO 38 MR MILUNOVICH THE ANALYST NOTED THAT RAILROADMEN'S HAS TWO OFFICES IN ILLINOIS CHICAGO AND JOLIET GIVING HUNTINGTON AN IMPORTANT FOOTHOLD IN THAT STATE JR KOCHER CHAIRMAN AND CEO OF RAILROADMEN'S IS EXPECTED TO SERVE AS CHAIRMAN OF HUNTINGTON'S INDIANA SUBSIDIARY HUNTINGTON BANCSHARES INDIANA INC AND ITS LEAD BANK HUNTINGTON NATIONAL BANK OF INDIANA 9306020043 930602 BUSINESS BRIEF LIONEL CORP LIONEL LEISURE SUBSIDIARY TO BE LIQUIDATED BY FIRM LIONEL CORP EDISON NJ SAID IT AGREED TO LIQUIDATE LIONEL LEISURE INC ITS PRINCIPAL SUBSIDIARY THE TOY RETAILER AND ITS LIONEL LEISURE UNIT WHICH HAVE OPERATED UNDER CHAPTER 11 FEDERAL BANKRUPTCYLAW PROTECTION SINCE 1991 SAID THEY WERE UNABLE TO AGREE WITH A COMMITTEE OF UNSECURED CREDITORS ON A REORGANIZATION PLAN THE COMMITTEE VOTED MAY 25 IN FAVOR OF LIQUIDATING LIONEL LEISURE AND WILL WORK WITH THE PARENT COMPANY TO LIQUIDATE THE UNIT LIONEL SAID LIONEL LEISURE OPERATES 28 TOY SUPERMARKETS IN SEVEN STATES PEOPLE FAMILIAR WITH LIONEL'S REORGANIZATION EFFORTS SAID THAT IN RECENT MONTHS FIVE GROUPS ATTEMPTED TO PUT TOGETHER REORGANIZATION DEALS MOST OF THEIR PLANS HOWEVER HINGED ON GETTING TOY MAKERS TO EXTEND CREDIT TERMS TO LIONEL BUT TOY MAKERS ALREADY OWED ABOUT 90 MILLION BY THE RETAILER FOR MERCHANDISE SHIPPED BALKED AT THE PLANS 9306020042 930602 TECHNOLOGY LOGICON WINS 204 MILLION JOB LOS ANGELES LOGICON INC SAID IT WON A FOURYEAR 204 MILLION CONTRACT FROM THE PHILLIPS LABORATORY IN ALBUQUERQUE NM TO PROVIDE LASERS AND IMAGING ENGINEERING SUPPORT AND ANALYSIS LOGICON SAID THE WORK WOULD BE CONDUCTED BY ITS LOGICON RDA SUBSIDIARY LOGICON PROVIDES ADVANCED TECHNOLOGY SYSTEMS AND SERVICES TO SUPPORT NATIONAL SECURITY CIVIL AND INDUSTRIAL NEEDS 9306020041 930602 INTERNATIONAL FRENCH INDUSTRIAL JOBS PARIS FRENCH INDUSTRY STAGNATED AND LOST 110000 JOBS IN 1992 A GOVERNMENT STUDY SAID THE STAGNATION WAS DUE MAINLY TO A CONTINUED FALL IN DOMESTIC BUSINESS INVESTMENT DOWN 42 THE STUDY SAID INVESTMENT FELL 52 THE YEAR BEFORE THE STUDY BY THE NATIONAL INSTITUTE OF ECONOMIC STATISTICS AND STUDIES WAS MORE BAD NEWS FOR CONSERVATIVE PRIME MINISTER EDOUARD BALLADUR AS HE TRIES TO CUT A BALLOONING BUDGET DEFICIT AND FIGHT UNEMPLOYMENT NEARING 11 9306020040 930602 BUSINESS BRIEF SHEFFIELD INDUSTRIES INC NEW CHARGES SAY MANAGERS MISSTATED FINANCIAL POSITION SHEFFIELD INDUSTRIES INC OPERATING UNDER CHAPTER 11 BANKRUPTCY PROTECTION SAID A COURTAPPOINTED EXAMINER ALLEGED THAT THE COMPANY'S FORMER SENIOR MANAGEMENT ALTERED COMPUTER RECORDS TO MISSTATE SHEFFIELD'S FINANCIAL POSITION SHEFFIELD A MIAMI MAKER OF HOSIERY PRODUCTS SAID TWO EARLIER EXAMINATIONS INCLUDING ONE BY THE EXAMINER FAILED TO DISCLOSE THE ALLEGED FRAUD THE COMPANY SAID THE NEW CHARGES ARE BASED ON INFORMATION ALLEGEDLY OBTAINED FROM AN EMPLOYEE THE COMPANY'S NEW CHIEF EXECUTIVE GROVER FURR NAMED TO THE POSITION TWO WEEKS AGO SAID SHEFFIELD WILL GIVE COMPLETE COOPERATION TO INVESTIGATORS THE COMPANY WHICH FILED FOR BANKRUPTCY PROTECTION IN JANUARY SAID IT HAS BEEN GIVEN 30 DAYS FROM MAY 27 TO FILE A PLAN OF REORGANIZATION SHEFFIELD SAID IT HAS RETAINED A REORGANIZATION EXPERT TO ASSIST IN DEVELOPING THE PLAN 9306020039 930602 TECHNOLOGY & HEALTH FDA ASKS REPORTING OF ADVERSE REACTIONS TO DRUGS AND DEVICES WASHINGTON THE FOOD AND DRUG ADMINISTRATION IS LAUNCHING A PROGRAM TO ENCOURAGE MEDICAL PROFESSIONALS TO REPORT WHEN THEIR PATIENTS SUFFER SERIOUS ADVERSE REACTIONS TO MEDICATIONS OR DEVICES SEPARATELY THE FDA SAID THAT 1414 MEDICALDEVICE APPLICATIONS HAD BEEN PENDING AT THE AGENCY FOR MORE THAN 90 DAYS AT THE END OF APRIL UP SHARPLY FROM THE USUAL BACKLOG OF A DOZEN OR SO APPLICATIONS THE AGENCY SAID THE BACKLOG IS DUE IN PART TO A HUGE JUMP IN APPLICATIONS THE COMMENT CAME IN RESPONSE TO A HIGHLY CRITICAL REPORT ON THE FDA'S REGULATION OF MEDICAL DEVICES BEING RELEASED TODAY BY THE HOUSE COMMERCE COMMITTEE'S OVERSIGHT AND INVESTIGATIONS SUBCOMMITTEE IN AN ARTICLE IN TODAY'S ISSUE OF THE JOURNAL OF THE AMERICAN MEDICAL ASSOCIATION FDA COMMISSIONER DAVID KESSLER SAID THE SIDEEFFECT REPORTING PROGRAM CALLED MEDWATCH WOULD ENCOURAGE PHYSICIANS TO REPORT SUSPICIONS THAT A DRUG OR DEVICE IS CAUSING AN ADVERSE REACTION INSTEAD OF WAITING FOR COMPELLING EVIDENCE RATHER THAN REPORTING ALL ADVERSE REACTIONS THE AGENCY WANTS TO HEAR ABOUT CASES WITH A POTENTIALLY SERIOUS OUTCOME SUCH AS DEATH OR DISABILITY WE'RE LOOKING TO CHANGE THE CULTURE OF MEDICINE WITH REGARD TO REPORTING OF SERIOUS ADVERSE REACTIONS DR KESSLER SAID IN A SEPARATE INTERVIEW TODAY MANY PHYSICIANS DON'T KNOW WHAT TO REPORT WHEN TO REPORT OR HOW TO REPORT THESE SIDE EFFECTS HE ESTIMATED THAT PRACTITIONERS TELL THE AGENCY ABOUT ONLY 10 OF THE SERIOUS CASES THEY ENCOUNTER IN PARTICULAR THE AGENCY IS INTERESTED IN REPORTS ABOUT DEVICES OR MEDICATIONS THAT HAVE BEEN ON THE MARKET LESS THAN THREE YEARS AS WELL AS ABOUT PRODUCTQUALITY PROBLEMS INACCURATE LABELING AND CONTAMINATION 9306020038 930602 AMC ENTERTAINMENT'S PURCHASE KANSAS CITY MO AMC ENTERTAINMENT INC A MOVIE EXHIBITING FIRM SAID IT ACQUIRED THE REMAINING 50 INTEREST IN EXHIBITION ENTERPRISES PARTNERSHIP FROM TPI ENTERTAINMENT INC AN AMC UNIT BOUGHT THE STAKE FOR 175 MILLION IN CASH AND RETIREMENT OF ITS BANK DEBT THE ACQUISITION GIVES AMC 60 ADDITIONAL THEATERS WITH 44 SCREENS IN THE DISTRICT OF COLUMBIA FLORIDA GEORGIA KANSAS MARYLAND MISSOURI AND VIRGINIA TPI ENTERTAINMENT IS A SUBSIDIARY OF TPI ENTERPRISES INC A WEST PALM BEACH FLA FIRM WHICH EXPECTS AFTERTAX PROCEEDS OF ABOUT 115 MILLION ON THE SALE 9306020037 930602 BUSINESS BRIEF U S WEST INC UNIT TO REDEEM DEBT ISSUES EARLY FOR FAVORABLE RATES U S WEST COMMUNICATIONS INC DENVER SAID IT IS CALLING FOR EARLY REDEMPTION OF 11 LONGTERM DEBT ISSUES TOTALING 15 BILLION TO TAKE ADVANTAGE OF CURRENT FAVORABLE RATES U S WEST INC THE PARENT COMPANY OF U S WEST COMMUNICATIONS SAID THE ONETIME COST OF THE REDEMPTIONS WOULD REDUCE ITS SECONDQUARTER NET BY 50 MILLION OR 12 CENTS A SHARE BY THE END OF 1993 REDUCTIONS IN INTEREST EXPENSE WILL SOFTEN THE IMPACT TO 10 CENTS A SHARE THE COMPANY SAID IT EXPECTS THE DECREASE IN INTEREST PAYMENTS TO ADD THREE CENTS A SHARE TO EARNINGS ANNUALLY STARTING IN 1994 THE COMPANY SAID IT PLANS TO REFINANCE THE ENTIRE DEBT UNDER LOWER INTEREST RATES IN THIS YEAR'S THIRD QUARTER THE 11 ISSUES WHICH HAVE A REDEMPTION DATE OF JULY 1 WERE ISSUED IN THE FORMER NAMES OF THREE TELEPHONE COMPANIES THAT WERE MERGED TO CREATE U S WEST COMMUNICATIONS 9306020036 930602 INTERNATIONAL JAPANESE VEHICLE SALES DROP TOKYO JAPAN'S SALES OF NEW CARS TRUCKS AND BUSES AS MEASURED BY REGISTRATIONS PLUMMETED 13 IN MAY FROM THE YEAREARLIER MONTH TO 330356 UNITS THE JAPAN AUTOMOBILE DEALERS' ASSOCIATION SAID AS FAR AS CAR SALES ARE CONCERNED THE ECONOMY IS JUST TERRIBLE AN ASSOCIATION SPOKESMAN SAID JAPAN'S VEHICLE SALES PICKED UP A MODERATE 17 IN MARCH FOR ONLY THE SECOND INCREASE IN 23 MONTHS BUT RETURNED TO A DOWNTREND IN APRIL WHEN SALES FELL 11 DEMAND FROM BOTH COMPANIES AND INDIVIDUALS SHOWS NO SIGN OF RECOVERY HE SAID 9306020035 930602 BUSINESS BRIEF NISSAN MOTOR CORP US UNIT RAISES BASE PRICE ON TWO 1993 QUEST MODELS NISSAN MOTOR CORP'S US SUBSIDIARY SAID IT RAISED THE BASE PRICES ON ITS 1993 QUEST XE AND GXE MODELS BY UP TO 200 OVER ITS JANUARY PRICE INCREASE AND AS MUCH AS 450 OVER 1993 MODEL YEAR INTRODUCTORY PRICES NISSAN IN CARSON CALIF RAISED THE BASE OF THE QUEST MINIVANS IN JANUARY OVER ITS 1993 INTRODUCTORY PRICE NISSAN SAID THE NEW BASE PRICE OF ITS QUEST XE MINIVAN IS NOW 17995 UP 11 OR 200 THAT'S ALSO 26 OR 450 HIGHER THAN THE INTRODUCTORY 1993 MODEL YEAR PRICE OF 17545 NISSAN SAID IT ALSO RAISED THE OPTION PACKAGE PRICES ON THE QUEST XE BY AS MUCH AS 200 THE NEW BASE PRICE FOR THE QUEST GXE IS 21800 UP 04 OR 100 FROM JANUARY AND UP 16 OR 350 FROM THE BEGINNING OF THE 1993 MODEL YEAR PRICE OF 21450 9306020034 930602 MARKETING & MEDIA RH MACY TO LAUNCH A CABLE TV VENTURE FOR VIEWER SHOPPING MACY'S PARTNERS IN THE VENTURE WHICH HAD BEEN EXPECTED INCLUDE CABLEVISION SYSTEMS CORP WHICH WILL CARRY THE PROGRAMMING TO ITS TWO MILLION SUBSCRIBERS HALF OF WHOM ARE IN NEW YORK CITY DON HEWITT CBS 60 MINUTES EXECUTIVE PRODUCER WHO WILL SERVE AS CREATIVE CONSULTANT FOR TV MACY'S AND THOMAS LEAHY FORMER CBS TELEVISION PRESIDENT WHO WILL SERVE AS AN ADVISER FINANCIAL TERMS OF THE AGREEMENT WEREN'T DISCLOSED BUT A MACY'S SPOKESMAN SAID THE COMPANY IS HOLDING DISCUSSIONS WITH OTHER POTENTIAL EQUITY HOLDERS INCLUDING ADDITIONAL CABLE TV OPERATORS AND CAPITAL PARTNERS MACY'S SAID IT WILL HOLD A MAJORITY INTEREST IN TV MACY'S CHUCK DOLAN CHAIRMAN OF CABLEVISION ESTIMATED THAT TV MACY'S WILL INITIALLY REACH 20 MILLION SUBSCRIBERS MACY'S HAS SAID THAT TV SHOPPING WILL ALLOW IT TO ENTER NEW GEOGRAPHIC MARKETS WHERE MACY'S DOESN'T OPERATE STORES AS WELL AS COMPLEMENT ITS STOREBASED RETAIL BUSINESS THE TV BROADCASTS WILL ORIGINATE FROM STORE LOCATIONS AS WELL AS TV STUDIOS TO ALLOW VIEWERS TO FEEL AS IF THEY ARE MOVING FROM DEPARTMENT TO DEPARTMENT THROUGHOUT THE STORE TV SHOPPERS WILL ALSO BE ABLE TO ORDER MUCH OF THE SAME MERCHANDISE SOLD AT THE RETAILER'S 110 MACY'S AND BULLOCK'S DEPARTMENT STORES LAST MONTH SAKS FIFTH AVENUE BEGAN A TELEVISION SHOW ON THE QVC NETWORK INC NETWORK WHERE IT SOLD MORE THAN 570000 OF MERCHANDISE IN ONE HOUR 9306020033 930602 BUSINESS BRIEF SUDBURY INC CLEVELAND FIRM COMPLETES REFINANCING OF ITS BANK DEBT SUDBURY INC SAID IT HAS COMPLETED REFINANCING OF ITS EXISTING BANK DEBT WITH A 48 MILLION CREDIT FACILITY ARRANGED THROUGH BANKAMERICA BUSINESS CREDIT INC A UNIT OF BANKAMERICA CORP THE CLEVELAND INDUSTRIAL MANUFACTURER WHICH HAS CONTINUED WITH ITS RESTRUCTURING SINCE EMERGING FROM BANKRUPTCYLAW PROCEEDINGS IN AUGUST 1992 SAID THE CREDIT FACILITY WILL PROVIDE FUNDS FOR WORKING CAPITAL AND CAPITAL EXPENDITURES SUDBURY SAID THE REFINANCING ENABLES IT TO RETAIN THREE UNITS THAT IT HAD PLANNED TO SELL WAGNER CASTINGS CO A FOUNDRY SOUTH COAST TERMINALS INC WITH OPERATIONS IN OIL BLENDING AND STORAGE AND CASTMATIC CORP A ZINC AND ALUMINUM DIE CASTING OPERATION THE COMPANY ALSO SAID IT SIGNED AN AGREEMENT IN PRINCIPLE TO SELL ITS RD&D CORP UNIT WHICH MAKES LARGE MACHINERY TO AN UNDISCLOSED BUYER TERMS WEREN'T DISCLOSED 9306020032 930602 BUSINESS BRIEFS EDISON BROTHERS STORES INC AGREED TO PURCHASE 28 BIGANDTALL APPAREL STORES FROM DAHLE MANAGEMENT CORP AND 20 STORES FROM STEVEN ADLER INC TERMS WEREN'T DISCLOSED NETWORK IMAGING CORP SIGNED A DEFINITIVE AGREEMENT TO BUY FRANCE'S OPTIX SA IN A 39 MILLION STOCK SWAP FOURTH FINANCIAL CORP REACHED AN AGREEMENT TO BUY PONCA BANCSHARES INC AND ITS SUBSIDIARY SECURITY BANK & TRUST CO OF PONCA CITY OKLA TERMS WEREN'T DISCLOSED FEDERALMOGUL CORP COMPLETED THE PREVIOUSLY ANNOUNCED ACQUISITION OF THE AUTOMOTIVE AFTERMARKET BUSINESS AND OTHER ASSETS OF AMCOR LTD'S BROWN & DUREAU AUTOMOTIVE PTY LTD UNIT MELBOURNE AUSTRALIA TERMS WEREN'T DISCLOSED IMMUNEX CORP'S SHAREHOLDERS APPROVED THE COMPANY'S MERGER WITH AMERICAN CYANAMID CO'S LEDERLE ONCOLOGY BUSINESS MEDIA VISION TECHNOLOGY INC COMPLETED ITS PURCHASE OF PELLUCID INC IN EXCHANGE FOR 584025 SHARES OF COMMON STOCK VALUED AT ABOUT 15 MILLION COMPUWARE CORP TERMINATED DISCUSSIONS TO ACQUIRE MINNEAPOLISBASED TECHNALYSIS CORP 9306020031 930602 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 LOEWS CORP 300 MILLION OF SENIOR NOTES DUE JUNE 1 2023 PRICED AS 7 5/8 S AT 98549 TO YIELD 775 ACCORDING TO MCM CORPORATEWATCH NONCALLABLE FOR 10 YEARS THE ISSUE WAS PRICED AT A SPREAD OF 08 PERCENTAGE POINT ABOVE THE TREASURY 30YEAR BOND RATED SINGLEA1 BY MOODY'S INVESTORS SERVICE INC AND DOUBLEAMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH DONALDSON LUFKIN & JENRETTE SECURITIES CORP SAN BERNARDINO COUNTY CALIF 254500000 OF 199394 TAX AND REVENUE ANTICIPATION NOTES APPARENTLY WON BY A FIRST BOSTON CORP GROUP AND BY BT SECURITIES CORP THE NOTES ARE DUE JULY 29 1994 A FIRST BOSTON GROUP IS BELIEVED TO HAVE WON 127250000 OF THE NOTES WITH A BID SETTING THE NET INTEREST COST AT 29206 THE NOTES HAVE A 325 COUPON AND ARE PRICED TO YIELD 285 AT THEIR MATURITY BT SECURITIES CORP IS BELIEVED TO HAVE WON 127250000 OF THE NOTES WITH A BID SETTING THE NET INTEREST COST AT 29206 THE NOTES ARE ALSO 325S PRICED TO YIELD 285 AT THEIR MATURITY MOODY'S HAS RATED THE NOTES MIG1 AND S&P HAS ASSIGNED AN SP1PLUS RATING BRITISH COLUMBIA CANADIAN PROVINCE 125 BILLION CANADIAN DOLLARS OF 775 SEMIANNUAL GLOBAL BONDS DUE JUNE 16 2003 REOFFERED AT 98725 VIA SCOTIA MCLEOD INC YIELD AT REOFFER 794 SPREAD 45 BASIS POINTS ABOVE 725 CANADIAN GOVERNMENT NOTE DUE 2003 FEES 035 POINT CHELTENHAM & GLOUCESTER BUILDING SOCIETY UK 150 MILLION OF 7875 EUROBONDS DUE JUNE 24 1998 AT ISSUE PRICE 101145 VIA JP MORGAN SECURITIES LTD REOFFERED AT 9957 TO YIELD 798 SPREAD 70 BASIS POINTS ABOVE COMPARABLE GOVERNMENT BOND FEES 1875 POINTS DAIWA KOSHO LEASE CO JAPAN 200 MILLION OF 1125 EUROBONDS DUE JUNE 17 1997 WITH EQUITY WARRANTS ATTACHED VIA DAIWA EUROPE LTD ISSUE PRICE PAR EACH 5000 BOND CARRIES ONE WARRANT EXERCISABLE FROM JULY 1 1993 TO JUNE 3 1997 TO BUY DAIWA LEASE SHARES AT EXPECTED 25 PREMIUM ABOVE CLOSING SHARE PRICE ON JUNE 7 WHEN FINAL TERMS SET FEES 225 POINTS IBERDROLA SPAIN 200 MILLION SWISS FRANCS OF 525 PUBLIC BONDS DUE JULY 1 2003 PRICED AT 101 VIA UNION BANK OF SWITZERLAND FEES 2375 POINTS JAPAN TRANSCITY CORP JAPAN 100 MILLION SWISS FRANCS OF PRIVATELY PLACED NOTES DUE JUNE 17 1997 WITH EQUITYPURCHASE WARRANTS CARRYING A 1125 COUPON AT PAR VIA CREDIT SUISSE EACH 50000FRANC NOTE WILL CARRY 50 WARRANTS EXERCISABLE FROM JUNE 28 1993 TO JUNE 6 1997 TO PURCHASE COMPANY SHARES FINAL TERMS WILL BE FIXED JUNE 7 FEES 1625 POINTS KANSAI INTERNATIONAL AIRPORT JAPAN 200 MILLION CANADIAN DOLLARS OF EUROBONDS DUE JULY 2 2003 AS 8S AT ISSUE PRICE 101225 LEAD UNDERWRITER IBJ INTERNATIONAL LTD REOFFERED AT 9958 TO YIELD 806 SPREAD 42 BASIS POINTS ABOVE 725 CANADIAN GOVERNMENT NOTE DUE 2003 GUARANTOR GOVERNMENT OF JAPAN FEES TWO POINTS MORTGAGE BANK OF DENMARK DENMARK 300 MILLION DANISH KRONER OF 7 EUROBONDS DUE JULY 1 1996 AT ISSUE PRICE 1013 VIA KREDIETBANK NV YIELD 703 AT BREAKEVEN PRICE FOR UNDERWRITERS GUARANTOR KINGDOM OF DENMARK FEES 1375 POINTS NIPPON TELEGRAPH & TELEPHONE CORP JAPAN 200 MILLION CANADIAN DOLLARS OF 725 EUROBONDS DUE JUNE 25 1998 AT ISSUE PRICE 101125 VIA PARIBAS CAPITAL MARKETS LTD REOFFERED AT 995 TO YIELD 737 SPREAD 37 BASIS POINTS ABOVE 65 CANADIAN GOVERNMENT NOTE DUE 1998 FEES 1875 POINTS SWEDISH NATIONAL HOUSING FINANCE CORP SWEDEN 10 BILLION YEN OF 4 EUROBONDS DUE SEPT 20 1995 REOFFERED AT 1002 VIA BANK OF TOKYO CAPITAL MARKETS YIELD AT REOFFER PRICE 39 ANNUAL FEES 02 POINT WORLD BANK SUPRANATIONAL 750 MILLION DUTCH GUILDERS OF 675 EUROBONDS DUE JUNE 23 2003 ISSUE PRICE 10065 VIA ABNAMRO BANK LTD REOFFERED AT 999 TO YIELD 676 SPREAD EIGHT BASIS POINTS ABOVE COMPARABLE DUTCH GOVERNMENT LOAN FEE ONE POINT 9306020030 930602 ICF UNIT WINS PROJECTS IN CHINA FAIRFAX VA ICF INTERNATIONAL INC SAID ITS UNIT KAISER ENGINEERS SIGNED TWO CONTRACTS VALUED AT 254 MILLION TO PROVIDE CONSULTING SERVICES FOR THE DEVELOPMENT OF ALUMINUM WHEEL CASTING PLANTS IN CHINA THE OAKLAND CALIF SUBSIDIARY WILL PROVIDE OVERALL PROJECT MANAGEMENT SUPPLY ALL FOREIGNSOURCED EQUIPMENT FOR THE PLANTS AND PERFORM BASIC ENGINEERING SERVICES IN NANJING AND SHENZHEN EACH PLANT WILL HAVE THE CAPACITY TO PRODUCE 500000 ALUMINUM WHEELS A YEAR FOR PASSENGER CARS PARTICULARLY NORTH AMERICAN AND EUROPEAN VEHICLES KAISER SAID 9306020029 930602 INTERNATIONAL SIEMENS AG UNIT RANCHO CORDOVA CALIF SIEMENS DUEWAG CORP A SUBSIDIARY OF SIEMENS AG OF GERMANY SAID IT WAS AWARDED A 90 MILLION CONTRACT FOR 37 NEW LIGHTRAIL VEHICLES FROM THE METROPOLITAN TRANSIT DISTRICT OF OREGON THE PORTLAND VEHICLES ARE SCHEDULED FOR DELIVERY BETWEEN THE END OF 1995 AND EARLY 1997 THE LIGHTRAIL VEHICLES WILL BE USED FOR AN EXPANSION OF SERVICE FOR THE LIGHTRAIL SYSTEM IN PORTLAND ORE SIEMENS DUEWAG CURRENTLY IS PRODUCING LRVS FOR SAN DIEGO ST LOUIS AND DENVER 9306020028 930602 WHAT'S NEWS WORLDWIDE CLINTON IS EXPECTED TO DELAY THE UNVEILING OF HIS HEALTHCARE PACKAGE THE PRESIDENT PROBABLY WILL AGAIN DELAY THE ANNOUNCEMENT OF HIS HEALTHCARE PLAN AT LEAST UNTIL NEXT MONTH AND POSSIBLY UNTIL SEPTEMBER DEMOCRATIC LEADERS ARE URGING CLINTON TO CONCENTRATE ON GETTING HIS DEFICITREDUCTION BILL THROUGH THE SENATE BEFORE HE TRIES TO SELL THE HEALTHCARE PLAN THE ORIGINAL TARGET DATE FOR THE PLAN WAS MAY 1 BUT THE MOST RECENT DEADLINE SET BY CLINTON HAD BEEN MIDJUNE A HALFDOZEN OR SO OF THE KEY DECISIONS ABOUT THE HEALTH PACKAGE ARE UNRESOLVED AIDES SAID MEETINGS TO PIN DOWN THOSE DETAILS HAVEN'T BEEN SCHEDULED THE PRESIDENT CONCEDED IN AN OVERT APPEAL TO DEMOCRATIC MODERATES AND REPUBLICANS THAT THE SENATE WILL CUT THE TAXES IN HIS BUDGET PLAN AND FIND SPENDING REDUCTIONS ALSO DESPITE OFFICIAL DENIALS CLINTON IS EXPECTED TO WITHDRAW THE NOMINATION OF LANI GUINIER FOR ASSISTANT ATTORNEY GENERAL FOR CIVIL RIGHTS POLICE IN BELGRADE CLASHED WITH THOUSANDS OF DEMONSTRATORS ANGERED BY WORSENING ECONOMIC CONDITIONS AND THE OUSTER OF YUGOSLAV PRESIDENT COSIC A DAY EARLIER DOZENS OF RIOT POLICE FIRED TEAR GAS AT THE CROWD AS PROTESTERS HURLED ROCKS AND SMASHED WINDOWS WITNESSES SAID THEY SAW CITIZENS FIRING GUNS AT THE POLICE SERB MORTAR SHELLS SLAMMED INTO A CROWD OF SPECTATORS AT A SOCCER GAME IN DOBRINJA A MUSLIMHELD SUBURB OF SARAJEVO KILLING AT LEAST 15 PEOPLE AND WOUNDING ABOUT 80 IN ONE OF THE WORST ATTACKS YET ON CIVILIANS IN THE BOSNIAN CAPITAL GUATEMALA'S ARMY OUSTED PRESIDENT SERRANO A WEEK AFTER HE DISSOLVED PARLIAMENT AND IMPOSED ONEMAN RULE THE MILITARY VOWED TO RESTORE CONSTITUTIONAL RULE BUT AFTER A DAY OF CONFUSING EVENTS IT WASN'T CLEAR WHO WOULD SUCCEED SERRANO DEFENSE MINISTER GARCIA SAMAYOA SAID THE CONGRESS WOULD CHOOSE AN INTERIM LEADER FOLIC ACID MAY PLAY AN IMPORTANT ROLE IN PREVENTING COLON CANCER HARVARD RESEARCHERS SAID FOLIC ACID A B VITAMIN IN FRUITS AND VEGETABLES APPEARS TO HELP THE PROCESS THAT TURNS CANCER GENES OFF THE RESEARCHERS SAID ALCOHOL INTAKE THEY ADDED BLOCKS FOLIC ACID'S ACTION AND MAY PROMOTE CANCER THE PHNOM PENH GOVERNMENT DEMANDED THAT VOTING BE REPEATED IN FOUR OF 21 CAMBODIAN PROVINCES TO CORRECT ALLEGED IRREGULARITIES IN LAST WEEK'S ELECTION ONE OFFICIAL SAID THE RESULTS WOULD BE REJECTED BUT A GOVERNMENT SPOKESMAN DENIED THIS WITH 60 OF THE BALLOTS COUNTED THE OPPOSITION FUNCINPEC LED THE RULING CAMBODIAN PEOPLE'S PARTY GERMAN POLICE ABANDONED A MANHUNT FOR FOUR SKINHEADS WANTED IN A FIREBOMBING THAT KILLED FIVE TURKS AUTHORITIES SAID A TEENAGE SUSPECT ARRESTED MONDAY GAVE POLICE INCORRECT DESCRIPTIONS OF OTHER ALLEGED PARTICIPANTS THE ANNOUNCEMENT FOLLOWED A SECOND NIGHT OF RIOTING IN SOLINGEN TO PROTEST SATURDAY'S SLAYINGS IN THE CENTRAL GERMAN CITY RUSSIAN PRESIDENT YELTSIN WAS CALLED A LIAR BY HIS VICE PRESIDENT WHO ADDRESSED 1500 DEPUTIES SEEKING TO BLOCK YELTSIN'S BID TO SHAPE A CONSTITUTION RUTSKOI SAID PARLIAMENT MUST REMOVE YELTSIN'S GOVERNMENT WITHIN TWO MONTHS A YELTSIN AIDE SAID RUTSKOI ALREADY STRIPPED OF KEY POSTS MAY BE FORCED TO GIVE UP HIS KREMLIN OFFICE THE AIDS EPIDEMIC WILL PLAGUE THE WORLD FOR AT LEAST ONE OR TWO GENERATIONS EVEN IF SCIENTISTS FIND AN EFFECTIVE VACCINE IN THE NEXT FEW YEARS ACCORDING TO THE CHAIRMAN OF THE INTERNATIONAL AIDS CONFERENCE THAT STARTS MONDAY IN BERLIN THE EPIDEMIC HAS YET TO REACH ITS PEAK SAID KARLOTTO HABERMEHL WHO HEADS A VIROLOGY INSTITUTE POORER SCHOOL SYSTEMS IN TEXAS SAID THEY WOULD CHALLENGE THE CONSTITUTIONALITY OF A PLAN FORCING RICH DISTRICTS TO HELP POOR DISTRICTS SAYING THE PLAN WOULD ALLOW A 600 PERSTUDENT SPENDING GAP A JUDGE SAID THE PLAN COULD GO INTO EFFECT TEMPORARILY THE SUPREME COURT RULED THAT PEOPLE CONVICTED IN FEDERAL COURT OF TRADING GUNS FOR DRUGS MAY GET AN EXTRA 30 YEARS IN PRISON SEPARATELY THE JUSTICES RULED THAT A CRIMINAL CONVICTION MUST BE OVERTURNED IF THE JURY WAS GIVEN A CONSTITUTIONALLY FLAWED DEFINITION OF BEYOND A REASONABLE DOUBT POLAND'S PRESIDENT WALESA PROPOSED NEW PARLIAMENTARY ELECTIONS FOR SEPT 12 AND SAID HE WILL NOMINATE A FORMER COMMUNIST AS PRIME MINISTER IF A COMMUNISTDOMINATED PARTY GETS THE MOST VOTES 9306020027 930602 WHO'S NEWS QUANTUM CHEMICAL CORP QUANTUM CHEMICAL CORP NEW YORK BRIAN T FERAN 51 YEARS OLD WAS APPOINTED TREASURER OF THIS CHEMICAL PRODUCER SUCCEEDING DAVID LODGE WHO REMAINS VICE PRESIDENT AND CHIEF FINANCIAL OFFICER MR FERAN PREVIOUSLY WAS ASSISTANT TREASURER BRIAN T FEARN WAS NAMED TREASURER OF QUANTUM CHEMICAL CORP HIS NAME WAS MISSPELLED IN AN ITEM IN YESTERDAY'S WHO'S NEWS COLUMN 9306020026 930602 BUSINESS BRIEF BALLY MANUFACTURING CORP STOCK RISES AS LEASE IS SIGNED FOR CASINO SITE IN MISSISSIPPI BALLY MANUFACTURING CORP'S STOCK ROSE 1875 TO CLOSE AT 9375 IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE ON NEWS THAT THE COMPANY HAS SIGNED A LEASE FOR PROPERTY ON WHICH IT WILL BUILD A DOCKSIDE CASINO IN TUNICA MISS BALLY WHICH OPERATES CASINO HOTEL RESORTS AND FITNESS CENTERS SAID THE NEW 30000SQUAREFOOT CASINO IS EXPECTED TO BE OPEN BY YEAR END THE DESIGN INCLUDES MORE THAN 1000 SLOT MACHINES AND 57 TABLE GAMES AN ADDITIONAL 35000SQUAREFOOT WELCOMING RECEPTION FACILITY AND A 1000SQUAREFOOT FOOD COURT AND PATRON SEATING AREA WILL ADJOIN THE CASINO THE CHICAGOBASED COMPANY PREVIOUSLY ANNOUNCED THAT IT IS PLANNING TO BUILD A CASINO IN BILOXI MISS TO BE OPEN BY SPRING 1994 BOTH THE TUNICA AND BILOXI PROJECTS ARE SUBJECT TO LICENSING APPROVALS BY THE MISSISSIPPI GAMING COMMISSION 9306020025 930602 BUSINESS BRIEF GRAND UNION HOLDINGS CORP FIRSTQUARTER'S CASH FLOW TO BE REDUCED BY STRIKE GRAND UNION CO WAYNE NJ SAID CASH FLOW FOR ITS FISCAL FIRST QUARTER ENDING JULY 24 WILL BE REDUCED BY 6 MILLION TO 8 MILLION AS A RESULT OF THE STRIKE AND LOCKOUT OF UNIONIZED GROCERY WORKERS THAT WAS SETTLED OVER THE WEEKEND CLOSELY HELD GRAND UNION A UNIT OF GRAND UNION HOLDINGS CORP AND THE SHOPRITE PATHMARK AND FOODTOWN SUPERMARKET CHAINS REACHED A TENTATIVE CONTRACT SETTLEMENT WITH THE UNITED FOOD AND COMMERCIAL WORKERS UNION THE FOURYEAR PACT IS SUBJECT TO RATIFICATION BY UNION MEMBERSHIP AT THE AFFECTED STORES A GRAND UNION SPOKESMAN SAID HE DIDN'T KNOW WHEN THE VOTE WOULD BE THE COMPANY SAID CASH FLOW WILL BE REDUCED BY LOST SALES PRODUCT LOSSES AND OTHER COSTS THE ESTIMATED REDUCTION INCLUDES A PROVISION FOR POSTSTRIKE RECOVERY COSTS GRAND UNION SAID THE WORK STOPPAGE'S COSTS WILL LIKELY CAUSE IT TO FALL OUT OF COMPLIANCE WITH BANKLOAN COVENANTS IT SAID HOWEVER THAT IT EXPECTS TO GET A WAIVER OF THE COVENANTS BY ITS LENDERS 9306020024 930602 BUSINESS BRIEF SPORT CHALET INC RETAILER'S PROFIT SALES ROSE PRELIMINARY RESULTS INDICATE SPORT CHALET INC REPORTED SALES ON A PRELIMINARY BASIS FOR THE FISCAL YEAR ENDED MARCH 31 OF ABOUT 1064 MILLION A 122 INCREASE FROM 948 MILLION A YEAR EARLIER THE LOS ANGELESBASED SPECIALTY SPORTING GOODS RETAILER SAID THE SALES RESULTS MAY FALL SHORT OF SOME INVESTORS' EXPECTATIONS BECAUSE OF WEAKERTHANEXPECTED SALES IN THE LAST SIX WEEKS OF THE YEAR AND NARROWER PROFIT MARGINS STEMMING FROM INCREASED COMPETITION PRELIMINARY NET INCOME IS ESTIMATED AT 22 MILLION OR 40 CENTS A SHARE COMPARED WITH 11 MILLION OR 23 CENTS A YEAR EARLIER SPORT CHALET SAID SALES FOR THE CURRENT QUARTER HAVE REBOUNDED AND ARE MEETING MANAGEMENT'S EXPECTATIONS THE RETAILER SAID IT IS PROCEEDING WITH PLANS TO OPEN THREE NEW STORES IN FISCAL 1994 BOOSTING ITS TOTAL STORES TO 17 SPORT CHALET'S STOCK ROSE 125 CENTS YESTERDAY TO 5375 IN NATIONAL OVERTHECOUNTER TRADING 9306020023 930602 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES COMPLAINTS OF SHORT CIRCUITS PROMPT RECALL OF LAPTOPS INTERNATIONAL BUSINESS MACHINES CORP ANNOUNCED A RECALL OF 150000 L40SX MODEL LAPTOPS FIRST PRODUCED IN MARCH 1991 IBM BASED IN ARMONK NY HAS RECEIVED 15 COMPLAINTS OF A SHORT CIRCUIT OCCURRING BETWEEN THE CIRCUITING AND A CONDUCTIVE COATING INSIDE THE CASE WHICH IN SOME INSTANCES HAS MELTED A SMALL HOLE IN THE CASE THE SHORT CIRCUIT OCCURS WHEN THE LAPTOP IS OPERATED ON A BATTERY AND IBM WILL INSTALL A FUSE TO STOP OVERHEATING IBM DECLINED TO SAY WHAT THE RECALL WOULD COST BUT SAID IT WON'T RESULT IN A SPECIAL CHARGE AGAINST EARNINGS A SPOKESMAN SAID IBM STOPPED MAKING THIS MODEL LAPTOP IN MARCH 9306020022 930602 SERVING UP NEW NUTRITION LABELS LABEL LAW STIRS UP FOOD COMPANIES BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL MINNEAPOLIS SHOVE A SLICE OF PEPPERONI AND CHEESE PIZZA INTO A FOOD PROCESSOR PROCESS UNTIL IT TURNS INTO A REDDISH GOO SCOOP THE GLOP OUT WITH A SPOON MOST PEOPLE DON'T PREPARE PIZZA THIS WAY BUT THIS IS THE NEW FEDERAL FOOD LABELING ACT PLAYING OUT AT PILLSBURY CO WHERE A TECHNICIAN AFTER TURNING THE PIZZA TO PASTE SENDS IT ON TO CHEMISTS FOR ANALYSIS A YEAR FROM NOW THE NATION'S SUPERMARKETS WILL BE BRIMMING WITH THOUSANDS OF NEW LABELS AND PACKAGES UNDER THE NUTRITION LABELING AND EDUCATION ACT OF 1990 FOOD MANUFACTURERS MUST DISCLOSE WHAT IS IN THEIR PRODUCTS IN A UNIFORM MANNER THE IDEA IS TO ALLOW SHOPPERS TO COMPARE APPLES AND ORANGES AND COMPREHEND THE NUTRITIONAL SIMILARITIES FOR CONSUMERS THAT SHOULD BE A PLUS IT MAY EVEN LEAD TO A HEALTHIER DIET BUT FOR US FOOD COMPANIES RELABELING HAS BECOME A COSTLY CONFUSING PROCESS GOBBLING UP MILLIONS OF DOLLARS AND THOUSANDS OF WORK HOURS AND CAUSING HEADSCRATCHING EVEN NOW 18 MONTHS AFTER THE FOOD AND DRUG ADMINISTRATION ISSUED THE PROPOSED RULES CONSIDER PACKAGE DESIGNER JANET RAICHE'S STRUGGLE TO SQUEEZE ALL THE INFORMATION THE GOVERNMENT WANTS CONSUMERS TO HAVE PLUS WHAT PILLSBURY THINKS IS IMPORTANT ONTO A 3INCH CYLINDER OF REFRIGERATED CROISSANTS WHERE WILL THE BAKING INSTRUCTIONS FIT SHE WONDERS PILLSBURY A UNIT OF BRITISH FOOD AND DRINK GIANT GRAND METROPOLITAN PLC EXPECTS TO SPEND AT LEAST 6 MILLION COMPLYING WITH THE LAW BEFORE NEXT MAY 8 IT WILL HAVE REDESIGNED MORE THAN 2600 LABELS ON EVERYTHING FROM BOXES OF PIZZA AND CANS OF PEAS TO BAGS OF POTATOES AND CARTONS OF ICE CREAM IT WORKS OUT TO ONE LABEL EVERY 45 BUSINESS MINUTES SAYS GUY JOHNSON THE COMPANY'S DIRECTOR OF NUTRITION AND HEAD OF THE LABELING PROJECT TEAM GLANCING AT HIS WATCH IF ALL GOES WELL PILLSBURY HOPES TO HAVE SOME NEW LABELS IN STORES LATE THIS SUMMER IT LOOKS GOOD IF YOU HAVE ONE ON YOUR PRODUCT AND YOU'RE SITTING NEXT TO A COMPETITOR WHO DOESN'T MR JOHNSON SAYS PILLSBURY BELIEVES IT IS AHEAD OF MANY RIVALS SPOTTING GLIMMERS OF IMPENDING REGULATORY CHANGES THE COMPANY BEGAN STEPPING UP NUTRITIONAL ANALYSIS OF PRODUCTS THREE YEARS AGO ITS SOPHISTICATED RESEARCH LABORATORY COMPUTER DATABASE EXPERTISE AND INHOUSE NUTRITION STAFF HAVE HELPED GREATLY STILL THE COMPANY HAS HAD TROUBLE INTERPRETING THE 882 PAGES OF REGULATIONS MR JOHNSON'S COPY OF THE FEDERAL REGISTER WITH THE REGULATIONS IS DOGEARED FROM USE SEEKING FURTHER GUIDANCE PILLSBURY FILED MORE THAN 200 PAGES OF INQUIRY AND COMMENT WITH THE GOVERNMENT PILLSBURY AND OTHERS IN THE INDUSTRY FEEL LIKE SOLDIERS CROSSING A MINEFIELD WITHOUT A GOOD MAP THEY ARE UNDER ORDERS TO ADVANCE BUT FEAR THE CONSEQUENCES OF A MISSTEP THAT MAY EXPLAIN WHY HAZLETON LABORATORIES A BIG MADISON WIS RESEARCH FACILITY SAYS AN EXPECTED SURGE IN WORK FOR FOOD CLIENTS HASN'T COME OTHERS IN THE RELABELING CHAIN HAVE SIMILAR REPORTS IF THEY SPEND A LOT OF MONEY UP FRONT ON ART WORK AND IT GETS TO PRESS AND THE GOVERNMENT WON'T OK IT THEY'VE GOT A MAJOR PROBLEM THIS SEEMS TO BE HOLDING BACK A LOT OF WORK SAYS GEORGE AGATE PRESIDENT OF LSI KALA A KALAMAZOO MICH PROCESSOR OF LABEL ART FOR PILLSBURY AND OTHERS DESPITE INDICATIONS OF A LASTMINUTE RUSH REGULATORS REMAIN OPTIMISTIC WE ARE ASSUMING THAT MOST COMPANIES WILL BE ABLE TO MAKE IT AND FROM WHAT WE'RE HEARING A LOT OF PEOPLE ARE GIVING IT A GOOD TRY SAYS ELIZABETH CAMPBELL A DIVISION DIRECTOR IN THE FDA'S OFFICE OF FOOD LABELING FDA COMMISSIONER DAVID KESSLER CALLS THE LABELING LAW ONE OF THE MOST IMPORTANT PUBLICHEALTH LANDMARKS THIS AGENCY HAS EVER ENGAGED IN IN AN INTERVIEW YESTERDAY HE EXPRESSED CONFIDENCE THAT IT WOULD LEAD TO A BETTERINFORMED PUBLIC ADMITTING BEFORE I TOOK THIS JOB I HAD NO IDEA WHETHER SIX GRAMS OF FAT PER SERVING WAS HIGH MEDIUM OR LOW NOW WE'LL HAVE A PRETTY GOOD IDEA WHAT THAT MEANS ALTOGETHER THE FDA ESTIMATES IT WILL COST INDUSTRY BETWEEN 14 BILLION AND 23 BILLION TO CHANGE 250000 FOOD LABELS IN THE US MARKETPLACE PILLSBURY'S MANAGEMENT GAVE THE RELABELING PROJECT TO MR JOHNSON WHOSE FIRST TASK WAS A STANDINGROOMONLY BRIEFING FOR EMPLOYEES WE NEEDED TO GET EVERYONE ON BOARD HE SAYS THEN HE PICKED AN IMPLEMENTATION TEAM CONSISTING OF REPRESENTATIVES FROM OPERATIONS PACKAGING SALES CONSUMER SERVICES PROCUREMENT REGULATORY AFFAIRS CHEMISTRY AND THE LEGAL DEPARTMENT DESPITE THEIR HIGHPROFILE ASSIGNMENTS MEMBERS ARE EXPECTED TO KEEP UP THEIR REGULAR WORK WHICH SOMETIMES NECESSITATES COMING IN WEEKENDS NEXT THE TEAM DREW UP A MASTER SCHEDULE WITH PRODUCTS ASSIGNED PRIORITIES ONE EARLY ISSUE WAS WHERE TO FIT IN GREEN GIANT PILLSBURY'S BELEAGUERED VEGETABLES UNIT IS UNDERTAKING A MASSIVE REPOSITIONING AND REDESIGN EFFORT AND BRAND MANAGERS WANTED TO CAPITALIZE ON NUTRITION AS PART OF A VEGGIESAREGOODFORYOU MESSAGE THE SCHEDULE INCLUDES ESTIMATES OF WHEN CURRENT LABEL INVENTORIES WILL RUN OUT WITH SO MANY PRODUCTS IN A SINGLE CATEGORY IT'S LIKELY THAT SOME WILL HAVE NEW LABELS BEFORE OTHER PILLSBURY PACKAGES ON THE SAME SHELF THAT COULD CONFUSE CONSUMERS BUT OUR GOAL IS TO HAVE LESS THAN 150000 OF OBSOLESCENT PACKAGING SAYS FERNANDO PALACIOS DIRECTOR OF BRANDS OPERATIONS BECAUSE OF THE VARIETY OF PRODUCTS PACKAGING INCLUDES BOXES CANS PAPER CYLINDERS AND POLYURETHANE BAGS PILLSBURY USES 20 OUTSIDE PRODUCTION COMPANIES NORMALLY A LABEL TAKES AT LEAST NINE WEEKS AT THE PRINTER SO MR PALACIOS TRIED TO LOCK LABEL MAKERS INTO THE COMPANY'S RELABELING SCHEDULE WE'RE GOING TO BOMBARD THEM HE SAYS BEFORE A PRODUCT CAN BE RELABELED ITS CONTENTS MUST BE ASSAYED THE WORK IS TIMECONSUMING AND EXPENSIVE ONE BREAD STICK TAKES ABOUT 700 WORTH OF TESTS SAYS PILLSBURY CHEMIST PATRICIA SACKETT THE INFORMATION GOES INTO A MASSIVE DATABASE DEFINING INGREDIENTS DOWN TO THE THIRD DECIMAL POINT PILLSBURY'S DATASERVICES PEOPLE WROTE SOFTWARE TO COMPUTE THE PERCENTAGE OF RECOMMENDED DAILY INTAKES OR DAILY VALUES OF A PRODUCT'S NUTRIENTS THOSE ARE AN INTEGRAL PART OF THE NEW LABEL BUT SOME OTHER REQUIRED NUMBERS WERE FOUND THROUGH OLDFASHIONED TRIAL AND ERROR IN THE COMPANY'S TEST KITCHENS COOKS HAD TO FIGURE OUT HOW MUCH PRODUCT GOES INTO A SINGLE SERVING THAT WILL BE THE COMMON DENOMINATOR ON ALL NEW LABELS FOR PANCAKES THE FDA SAYS A SINGLE SERVING IS THREE MEDIUMSIZED CAKES WEIGHING 110 GRAMS BUT SINCE SOME MIXES REQUIRE CONSUMERS TO ADD MILK OIL AND EGGS CALCULATING HOW MUCH BATTER IT TAKES ISN'T SO SIMPLE TO DO SO MARGE RYERSON A SENIOR PRODUCT SPECIALIST WORKED BACKWARD COOKING BATCHES OF PANCAKES AND WEIGHING THEM UNTIL SHE KNEW EXACTLY HOW MUCH BATTER WAS REQUIRED IT TOOK ABOUT FOUR DAYS TO FIGURE OUT SHE SAYS STILL THE EDIBLE RESULTS MAY VARY OVENS BAKE DIFFERENTLY AND THE AMOUNT OF WATER THAT GOES UP IN STEAM DURING BAKING THE EXPERTS CALL IT BAKE LOSS CAN ALTER THE COOKED PRODUCT'S WEIGHT SO THERE IS A DOLLOP OF GUESSTIMATE IN SOME OF THE NUMBERS WE'LL ALL BE LOOKING AT EVERYBODY ELSE'S LABELS MRS RYERSON SAYS THE FDA SAYS IT WILL SPOTCHECK LABELS AS THEY APPEAR AND WILL ADVISE MANUFACTURERS IF IT FINDS EGREGIOUS ERRORS THE TESTKITCHEN STAFF SUSPECTS THAT SOME OF THE NEW LABEL INFORMATION WILL BE IGNORED FROM EXPERIENCE STAFF MEMBERS KNOW THAT NURSING HOMES AND OTHER FOODSERVICE CUSTOMERS TYPICALLY CUT 64 PIECES FROM A SHEETCAKE MADE FROM THEIR FIVEPOUND BOXES OF MIX BUT THE NEW REGULATIONS WILL REQUIRE THAT THOSE BOXES INDICATE THEY MAKE ABOUT 40 PIECES BASED ON WEIGHT TYPE OF CAKE AND A GOVERNMENT SURVEY OF THE AVERAGESIZED PIECE NEWLABEL ADVOCATES HOPE THAT THE EMPHASIS ON NUTRITION WILL ENCOURAGE COMPANIES TO DEVELOP MORE NUTRITIOUS PRODUCTS INDEED PILLSBURY ALREADY IS REFORMULATING SOME PRODUCTS TO IMPROVE THEIR NUTRITIONAL PROFILE FOR ITS REDUCEDSODIUM CANNED MEXICORN THE COMPANY WILL SWITCH TO FROZEN RED PEPPER WHICH ISN'T AS SALTY AS THE BRINEPACKED PEPPERS USED NOW TO ADD BITS OF RED TO CORN KERNELS BACON PIECES THAT FLAVOR BAKED BEANS ALSO MAY SHRINK FOR THE SAME REASON THE GOVERNMENT'S NEW DEFINITIONS WILL FORCE PILLSBURY TO BACK OFF FROM AT LEAST ONE CURRENT NUTRITION CLAIM BOXES OF PAPPALO'S PREMIUM PIZZA WON'T BE ABLE TO SAY THE PRODUCT IS LOWFAT EVEN THOUGH IT CONTAINS LESS FAT THAN MOST BRANDS TO MAKE A LOWFAT CLAIM A FOOD MUST HAVE NO MORE THAN THREE GRAMS OF FAT PER 100 GRAMS AND PAPPALO'S SAYS IT CAN'T MEET THAT CRITERION WITHOUT SACRIFICING TASTE MUCH OF THE NEWLABEL BURDEN FALLS ON PACKAGE DESIGNERS MS RAICHE WHO IS IN CHARGE OF REFRIGERATEDDOUGH CONTAINERS USES AN APPLE MACINTOSH COMPUTER TO REARRANGE WORDS AND GRAPHICS ON AN ELECTRONIC LAYOUT IT'S A TEDIOUS PROCESS EACH WORD IS SCRUTINIZED FOR ITS IMPORTANCE PERISHABLE AND DO NOT FREEZE HAVE BEEN AMONG THE CASUALTIES SQUEEZED OFF FOR LACK OF SPACE BECAUSE PACKAGE WORDING IS A REGULATORY THICKET LAWYERS ARE AMONG THOSE SIGNING OFF ON LABEL REVISIONS THE ADDITION OF A NUTRITION FACTS BOX THE CENTERPIECE OF THE NEW LABELS HAS FORCED OTHER DESIGN CHANGES PILLSBURY'S DOUGH CYLINDERS TRADITIONALLY HAVE TWO PICTURES OF THE BAKED PRODUCT SO THAT IF THE CAN ROLLS ON THE SHELF PASSING SHOPPERS STILL CAN TELL WHAT'S INSIDE BUT THE NEW NUTRITION REQUIREMENTS LEAVE ROOM FOR ONLY ONE PICTURE FOR CAKE MIXES THERE IS TALK OF PRINTING RECIPES ON THE INSIDES OF BOXES DESPITE THE COSTS AND HASSLES PILLSBURY MANAGEMENT SAYS IT SUPPORTS THE CONGRESSIONALLY ORDERED PROGRAM WE DIDN'T WANT A NUTRITION TOWER OF BABEL ASSERTS JAMES BEHNKE SENIOR VICE PRESIDENT TECHNOLOGY THE COMPANY WAS WORRIED THAT IF THE FEDERAL GOVERNMENT DIDN'T ISSUE A SINGLE SET OF REGULATIONS EACH STATE MIGHT WHEN NEW LABELS BEGIN APPEARING PILLSBURY WILL USE ITS 800NUMBER CONSUMER CALLIN LINES TO SPOT EARLY PROBLEMS AND HELP CALLERS INTERPRET THEM SAYS SALLY PETERS DIRECTOR OF CONSUMER SERVICES IT POSITIONS THE FOOD INDUSTRY FOR THE FUTURE 9306020021 930602 LEISURE & ARTS ALFRED BRENDEL ON BEETHOVEN BY BARBARA JEPSON NEW YORK ALFRED BRENDEL IS A NONONSENSE PERFORMER WHO STRIDES QUICKLY TO THE PIANO SITS DOWN AND PLAYS NO LASTMINUTE ADJUSTMENTS TO THE BENCH NO RITUALISTIC MEDITATION BEFORE HIS HANDS TOUCH THE KEYBOARD HIS MUSIC MAKING IS SIMILARLY DIRECT POWERFUL PROPULSIVE AND OFTEN ALAS EMOTIONALLY ARID IF HE HAD HIS YOUNGER COMPETITOR RICHARD GOODE'S POETIC SENSITIVITY AND VELVETY TONE HE COULD RULE THE PIANO WORLD MR BRENDEL'S PENETRATING INTELLIGENCE HAS NONETHELESS MADE HIM ONE OF TODAY'S LEADING BEETHOVEN INTERPRETERS FOR MORE THAN 40 YEARS THE 62YEAROLD AUSTRIAN HAS IMMERSED HIMSELF IN BEETHOVEN'S MUSIC PERFORMING IT MORE THAN 20 SONATA CYCLES WORLDWIDE RECORDING IT AND WRITING ABOUT IT IN TWO BOOKS OF ESSAYS WHEN CARNEGIE HALL ANNOUNCED A SEMINAR ENTITLED BRENDEL ON BEETHOVEN MUSIC SPECIALISTS TOOK NOTE THE EVENT ONE OF FOUR TRAINING WORKSHOPS SPONSORED BY CARNEGIE HALL THIS SEASON ATTRACTED A HIGHLY KNOWLEDGEABLE AUDIENCE OF UNIVERSITY PROFESSORS KEYBOARD TEACHERS AND MUSICIANS INCLUDING THE VIOLINIST MIDORI AND THREE IMPROMPTU VISITORS THE YOUNG RUSSIAN VIRTUOSO YEVGENY KISSIN THE VETERAN PIANIST CLAUDE FRANK AND THE CONDUCTOR RACHEL WORBY BUT THE 120 AUDITORS WHO PAID 170 TO ATTEND THE THREEDAY WORKSHOP ALSO INCLUDED BEETHOVEN ENTHUSIASTS SUCH AS AUDREY RODGERS A FORMER VOCAL STUDENT WHO HELPS RUN HER FATHER'S DAIRY FARM IN RURAL PENNSYLVANIA JOHN DESMARTEAU AN ANESTHESIOLOGIST WITH A HEALTHMAINTENANCE ORGANIZATION IN GREAT FALLS VA WHO DABBLES IN PIANO AND COMPOSITION AND STEPHEN TOBOLOWSKY A CHARACTER ACTOR GROUNDHOG DAY AND DIRECTOR FROM NORTH HOLLYWOOD CALIF WHO RECENTLY DREW ON HIS 20 YEARS OF KEYBOARD LESSONS WHEN HE PORTRAYED A PIANOPLAYING CHILD MOLESTER IN WHERE THE DAY TAKES YOU ALL IN ALL THEY GOT THEIR MONEY'S WORTH IF THE OPENING SESSION WAS RATHER TEDIOUS WITH MR BRENDEL SEATED STIFFLY AT A TABLE READING FROM NOTES THE PIANIST AS PERFORMER SOON SUPPLANTED THE PIANIST AS SCHOLAR AT ONE POINT MR BRENDEL A TALL MAN WITH AN IMPISH GRIN AND A HALO OF UNRULY GRAY HAIR LEAPED TO HIS FEET AND PIROUETTED TO DEMONSTRATE THE RHYTHMIC FLOW OF A MELODIC LINE WHEN AN AUDITOR ASKED AN INTERPRETIVE QUESTION ABOUT ANOTHER SONATA MOVEMENT MR BRENDEL QUIPPED THAT THE SCORE INDICATES THAT IT SHOULD BE PLAYED LEGATO SMOOTHLY AND DOLCE SWEETLY BUT TOO OFTEN IT IS PLAYED NONLEGATO AND AL DENTE A BIT HARSHLY LIKE PROPERLY COOKED SPAGHETTI THAT CLINGS TO THE TOOTH MR BRENDEL WAS ASSISTED IN THE WORKSHOP BY THE MUSICOLOGIST AND AUTHOR WILLIAM KINDERMAN A BRILLIANT BUT SELFIMPORTANT MAN OF 40 WITH AN ENCYCLOPEDIC KNOWLEDGE OF MUSIC INITIALLY HE FUNCTIONED AS ONE PART SECURITY BLANKET AND ONE PART TALKSHOW SIDEKICK BUT AS THE SESSIONS PROGRESSED MORE SPONTANEOUS DIALOGUE ENSUED MY PERSONAL FAVORITE MR KINDERMAN INFORMED THE AUDIENCE IN PORTENTOUS TONES THAT HE HAD ONLY RECENTLY DISCOVERED THE RHYTHMIC DIFFERENCE BETWEEN A HORSE TROT AND A GALLOP A DISTINCTION THAT CAN INDEED ILLUMINATE THE CONTRASTING RHYTHMIC PATTERNS IN THE THIRD MOVEMENT OF THE TEMPEST SONATA THE PIANIST WHILE ACKNOWLEDGING THE VALIDITY OF THAT CONCEPT PREFERRED TO SEE THE TEMPEST IN LARGER IF NO LESS PICTORIAL TERMS AS AN ANGEL BETWEEN TWO DEMONS I THINK OF MYSELF AS AN ANGEL WHEN I PLAY THE ADAGIO HE OPINED WITH A TWINKLE IN HIS EYE NOT A ROSY CHERUB BUT A SUBLIME DIGNIFIED CREATURE SUCH COMMENTS ILLUSTRATE MR BRENDEL'S ONGOING EFFORT TO ASSIGN INDIVIDUAL CHARACTERS TO EACH OF BEETHOVEN'S 32 SONATAS BEETHOVEN SIGNALS THE CHARACTER OF EACH MOVEMENT RIGHT AT THE BEGINNING HE TOLD LISTENERS I TRY TO IDENTIFY THAT CHARACTER THEN ACT IT OUT PERFORMERS SHOULD BEHAVE LIKE CHARACTER ACTORS WITHOUT OVERSTEPPING THE BOUNDARIES OF THE MUSIC HE CONTRASTED THE MAGNIFICENT ORGANIZATION OF BEETHOVEN'S MUSIC WITH THE CHAOS OF THE COMPOSER'S LIFE THERE WAS A CHAMBER POT UNDER HIS PIANO MR BRENDEL NOTED MUSIC SCATTERED AROUND THE ROOMS AND HIS HANDWRITING OFTEN LOOKS LIKE THAT OF A MADMAN MR KINDERMAN WHO LED THE TUESDAYAFTERNOON AND WEDNESDAY SESSIONS SHARED HUMOROUS EXAMPLES OF THE COMPOSER'S LOVE OF BAWDY PUNS AND OFFERED INTRIGUING ASSOCIATIONS BETWEEN BEETHOVEN'S CHOICE OF MUSICAL KEYS AND SPECIFIC EMOTIONS AS A RESULT A MORE COMPLEX BETTERROUNDED PORTRAIT OF THE COMPOSER EMERGED THAN THE CONVENTIONAL BEETHOVEN A HEROIC FIGURE TORMENTED BY DEAFNESS AN IMMEDIATE RESULT OF THE WORKSHOP WAS THAT IT PROVIDED A CORE OF WELLINFORMED LISTENERS FOR THE SECOND OF MR BRENDEL'S TWO RECENT CARNEGIE RECITALS WHICH INAUGURATED A THREEYEAR BEETHOVEN SONATA CYCLE AT THE HALL HE IS ALSO PERFORMING THE CYCLE IN SAN FRANCISCO LOS ANGELES AND TORONTO NO ONE MISSED THE SPIRIT OF GENTLE PARODY HE BROUGHT TO THE G MAJOR SONATA OPUS 31 NO 1 NOT AFTER PREVIOUSLY HEARING THE PIANIST COMMENT THAT WHEN HE PLAYED THE TRILLLADEN ADAGIO MOVEMENT AT LA SCALA RECENTLY HE TRIED TO IMAGINE THAT HE WAS CECILIA BARTOLI THE ITALIAN COLORATURA MEZZOSOPRANO KNOWN FOR HER EXQUISITE ROSSINI INDEED HE SEES THIS SONATA AND THE SECOND MOVEMENT IN PARTICULAR AS BEETHOVEN AFFECTIONATELY SPOOFING ROSSINI OPERA AND HE PLAYS IT THAT WAY IN THE IMPRESSIVE FIRST INSTALLMENT OF HIS SECOND BEETHOVEN SONATA CYCLE FOR THE PHILIPS LABEL DUE HERE IN JANUARY WHILE OTHER PIANISTS SUCH AS MR GOODE WHO IS NEARING COMPLETION OF HIS OWN BEETHOVEN SONATA CYCLE FOR ELEKTRA/NONESUCH HAVE SET THE ADAGIO'S HUMOROUS TOUCHES IN A MORE GRACEFUL LYRICAL CONTEXT NONE HAVE EQUALLED THE WIT AND UNIFIED CONCEPT MR BRENDEL BROUGHT TO IT IN THIS INGRATIATING CARNEGIE RECITAL THE MOST IMPORTANT LEGACY OF THE CARNEGIE WORKSHOPS HOWEVER IS THE INFORMATION THEY WILL DISSEMINATE MARK DIMOND A PROFESSOR OF PIANO AND ORGAN AT MINOT STATE UNIVERSITY IN MINOT ND SAID HE HOPES TO INSPIRE HIS STUDENTS TO SPEND MORE TIME INVESTIGATING THE PERSONAL CONTEXT IN WHICH EACH WORK WAS COMPOSED WILLIS C REGIER DIRECTOR OF THE UNIVERSITY OF NEBRASKA PRESS WHICH IS A MAJOR FORCE IN BEETHOVEN SCHOLARSHIP SAID HE VALUES MR BRENDEL'S USE OF METAPHOR OVER ANALYSIS TO SPEAK ABOUT BEETHOVEN'S MUSIC MY CAPACITY FOR ASSESSING BEETHOVEN SCHOLARSHIP HAS IMPROVED HE DECLARED AS FOR MS RODGERS THE NINTHGENERATION FARMER SHE WENT HOME LADEN WITH BOOKS ON COMPOSERS FOR HER NIECES AND NEPHEWS AND A DEEPER APPRECIATION OF THE PREPARATION MUSICIANS SUCH AS MR BRENDEL BRING TO THEIR ART IN AN ERA WHEN PERFORMERS AND EDUCATORS JUSTLY COMPLAIN ABOUT THE SORRY STATE OF MUSIC EDUCATION IN OUR PUBLIC SCHOOLS CARNEGIE HALL IS ACTUALLY DOING SOMETHING TO HELP FILL THE GAP WITH STYLE AND SUBSTANCE MS JEPSON IS A MUSIC WRITER IN NEW YORK 9306020020 930602 AT&T TO RAISE EO STAKE NEW YORK AP AMERICAN TELEPHONE & TELEGRAPH CO SAID TUESDAY IT WOULD BECOME THE MAJORITY OWNER OF PRIVATELY HELD EO INC AND WILL SELL THE SMALL COMPANY'S PERSONAL COMMUNICATORS AT&T SAID IT WOULD INCREASE ITS 20 PERCENT STAKE IN EO TO SLIGHTLY MORE THAN 51 PERCENT THAT WOULD ALLOW THE AT&T BRAND TO APPEAR ON EO'S MACHINES AND WOULD GIVE EO ACCESS TO AT&T'S TECHNOLOGY SERVICES AND SALES CHANNELS INCLUDING AT&T PHONE STORES THE COMPANIES SAID EO AND AT&T WILL INTRODUCE THE PERSONAL COMMUNICATORS WHICH COMBINE THE FUNCTIONS OF FAX ELECTRONIC MAIL CELLULAR PHONES AND PERSONAL COMPUTERS AT THE CONSUMER ELECTRONICS SHOW IN CHICAGO LATER THIS WEEK A BASIC MODEL WILL COST ABOUT 2000 THE MOST POWERFUL VERSION WHICH INCLUDES A 20 MEGABYTE HARD DISK FOR MEMORY AND VOICE PHONE CAPABILITY WILL SELL FOR ABOUT TWICE AS MUCH AT&T'S MICROELECTRONICS UNIT DEVELOPED THE CHIP THAT IS THE BRAIN OF THE EO MACHINE IT IS RUN ON OPERATING SOFTWARE FROM GO CORP WHICH ALLOWS USERS TO ENTER INFORMATION AND CONTROL THE MACHINE WITH A PENLIKE DEVICE 9306020019 930602 INTERNATIONAL UNEMPLOYMENT IN FINLAND HELSINKI FINLAND FINLAND'S UNEMPLOYMENT RATE WAS 176 IN APRIL UP FROM 174 IN MARCH AND FROM 121 ONE YEAR AGO THE CENTRAL STATISTICAL OFFICE SAID THE INCREASE REFLECTS A RECESSION THAT HAS FORCED MANY SMALL AND MEDIUMSIZED BUSINESSES TO CLOSE DOWN OR LAY OFF EMPLOYEES THE STATISTICAL OFFICE'S PREVIOUS REPORTS SHOWED A PEAK UNEMPLOYMENT RATE OF 18 IN FEBRUARY LAST MONTH THE LABOR MINISTRY IN ITS OWN REPORT SAID UNEMPLOYMENT HAD REACHED A POSTWORLD WAR II RECORD 19 FOR MARCH AND APRIL THE LABOR MINISTRY'S REPORT INCLUDES PARTTIME WORKERS 9306020018 930602 STRIKE AT NATIONALSTANDARD PLANT NILES MICH NATIONALSTANDARD CO A MAKER OF COMPONENTS FOR VEHICLE AIRBAGS SAID UNIONREPRESENTED EMPLOYEES AT ITS COLUMBIANA ALA PLANT WENT ON STRIKE YESTERDAY UPON THE EXPIRATION OF A LABOR CONTRACT THE COMPANY'S LAST PROPOSAL WAS NOT ACCEPTED BY MEMBERS OF UNITED STEELWORKERS UNION LOCAL NO 15015 WHICH REPRESENTS ABOUT 200 EMPLOYEES NATIONALSTANDARD SAID LIMITED PRODUCTION WILL CONTINUE WITH THE SUPERVISORY AND OFFICE PERSONNEL AT THE PLANT THE COMPANY SAID NO FURTHER MEETINGS WITH THE UNION HAVE BEEN SCHEDULED 9306020017 930602 TUESDAY'S MARKETS BOND RALLY SPARKS RISE IN STOCKS INDUSTRIALS GAIN 2491 GOLD PLUNGES AS FEARS ON INFLATION SUBSIDE BY STEVEN E LEVINGSTON STAFF REPORTER OF THE WALL STREET JOURNAL A THREEDAY WEEKEND APPARENTLY HELPED BOND TRADERS FEEL BETTER ABOUT EFFORTS TO RESTRAIN INFLATION THEY SPARKED A POWERFUL BOND MARKET RALLY THAT SPILLED OVER INTO THE STOCK MARKET THE DOW JONES INDUSTRIAL AVERAGE CLIMBED 2491 POINTS TO 355234 SHORT OF A RECORD STANDARD & POOR'S 500STOCK INDEX ROSE 364 TO 45383 AND THE NASDAQ COMPOSITE INDEX GAINED 375 TO 70428 THE TREASURY'S BENCHMARK 30YEAR ISSUE SOARED MORE THAN 1 1/4 POINTS OR MORE THAN 1250 FOR EACH 1000 FACE AMOUNT THE YIELD DROPPED TO 688 FROM 698 FRIDAY THE BOND MARKET OPENED STRONGLY AS INVESTORS TOOK NOTE OF RECENT REPORTS THAT THE FEDERAL RESERVE IS READY TO RAISE SHORTTERM INTEREST RATES IF NECESSARY TO COMBAT INFLATION BOND TRADERS ALSO LIKED PERCEPTIONS OF IMPROVED CHANCES FOR SENATE PASSAGE OF PRESIDENT CLINTON'S DEFICITREDUCTION PLAN BUT IT WAS A TUMBLE IN GOLD PRICES IN THE AFTERNOON THAT SENT BOND PRICES SOARING TRADERS INTERPRETED THE DECLINE AS A FURTHER SIGN THAT INFLATION IS MODERATING GOLD FOR AUGUST DELIVERY SANK 9 AN OUNCE TO 37130 A DECLINE OF 24 WE'VE HAD A TREMENDOUS RUN IN GOLD PRICES SAID JAMES SOLLOWAY DIRECTOR OF RESEARCH AT ARGUS RESEARCH A SELLOFF IS NOT THAT SURPRISING ESPECIALLY IF WE'RE HAVING SOME STABILITY IN THE DOLLAR THE DOLLAR STABILIZED SOMEWHAT AFTER TOUCHING ANOTHER POSTWORLD WAR II LOW OF 10650 AGAINST THE YEN IN LATE ASIAN TRADING IN LATE NEW YORK TRADING THE DOLLAR WAS A LITTLE HIGHER AGAINST THE YEN THAN IT WAS LATE FRIDAY THOUGH IT WAS LOWER THAN IN TOKYO ON MONDAY WHEN THE US MARKET WAS CLOSED SOME ANALYSTS SAID THE DOLLAR'S SUPPORT AGAINST THE YEN WAS LINKED TO THE REPORTS OF THE FED'S WILLINGNESS TO BATTLE INFLATIONARY PRESSURES BUT MR SOLLOWAY ARGUED THAT THE JURY ON INFLATION IS STILL OUT NEXT WEEK'S REPORTS ON CONSUMER AND WHOLESALE PRICES ARE THE MOST IMPORTANT NUMBERS THIS MONTH FOR THE FINANCIAL MARKETS HE SAID THE BOND MARKET'S RALLY PROPELLED THE INDUSTRIAL AVERAGE INTO RECORD TERRITORY FOR PART OF THE SESSION BUT THE BLUECHIP AVERAGE FELL BACK BEFORE THE CLOSE THE S&P 500 ALSO FLIRTED WITH A RECORD WALTER C REVIS MARKET ANALYST AT HAMILTON INVESTMENTS IN CHICAGO SAID HE WOULD BE MUCH MORE OPTIMISTIC IF THE BROADER INDEXES HIT RECORDS AS THE INDUSTRIAL AVERAGE HAS IN RECENT SESSIONS I'M WAITING FOR THE BROADER INDEXES TO CONFIRM THE DOW'S HIGH HE SAID IF THAT HAPPENS IT TAKES A LOT TO STOP THE MOMENTUM DESPITE THE MARKET'S RALLY YESTERDAY ONE CONFIRMED BULL ELAINE GARZARELLI DIRECTOR OF QUANTITATIVE STRATEGIES AT SHEARSON LEHMAN SAID SHE WAS MODESTLY MORE BEARISH BECAUSE TREASURY BILL RATES ARE RISING INDEED THEY ROSE YESTERDAY EVEN AS LONGTERM RATES WERE SINKING SHE NOTED THAT THREEMONTH TREASURY BILL RATES ARE ABOVE 3 UP FROM A RECENT LOW OF 285 IN APRIL WE'RE GETTING CLOSER TO A POSSIBLE SELL SIGNAL BUT I DON'T THINK IT'LL HAPPEN UNTIL SOME TIME IN 1994 SHE SAID WORLDWIDE STOCK PRICES GAINED A BIT IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX ROSE 024 TO 10815 IN MAJOR MARKET ACTION STOCK PRICES ROSE VOLUME TOTALED 2296 MILLION SHARES ON THE NEW YORK STOCK EXCHANGE WHERE 1231 ISSUES ADVANCED AND 712 FELL BOND PRICES ROSE THE 10YEAR TREASURY NOTE ROSE NEARLY 3/4 POINT OR 750 FOR EACH 1000 FACE AMOUNT TO YIELD 605 THE DOLLAR WAS MIXED IN LATE NEW YORK TRADING THE CURRENCY WAS QUOTED AT 15865 MARKS AND 10705 YEN COMPARED WITH 15875 MARKS AND 10695 YEN FRIDAY 9306020016 930602 BUSINESS BRIEF CHEROKEE INC BANKRUPTCY COURT CONFIRMS PREPACKAGED RESTRUCTURING CHEROKEE INC SAID THE BANKRUPTCY COURT IN DELAWARE WHERE THE COMPANY IS INCORPORATED CONFIRMED A PREPACKAGED PLAN OF REORGANIZATION THAT RESTRUCTURES CHEROKEE'S INDEBTEDNESS AND PREFERRED STOCK OBLIGATIONS THE PLAN REDUCES THE COMPANY'S DEBT PLUS PREFERRED STOCK TO ABOUT 100 MILLION FROM 190 MILLION AND REDUCES ANNUAL FIXED CHARGES BY ABOUT 14 MILLION THE COMPANY IN SUNLAND CALIF SAID THE PLAN ALSO CALLS FOR THE STOCK OF ITS CHEROKEE GROUP UNIT TO BE EXCHANGED FOR AN INTEREST IN THE REORGANIZED AND CONSOLIDATED ENTITY WHICH WILL RETAIN THE NAME CHEROKEE INC CHEROKEE WHICH DESIGNS MAKES AND MARKETS CASUAL APPAREL AND FOOTWEAR UNDER THE CHEROKEE BRAND NAME FILED FOR REORGANIZATION APRIL 23 AMONG OTHER PROVISIONS THE PLAN CALLS FOR HOLDERS OF ABOUT 1053 MILLION IN CHEROKEE GROUP NOTES DUE 1999 TO RECEIVE 525 MILLION OF 11 SUBORDINATED CHEROKEE INC NOTES DUE 1999 AND ABOUT 66 OF NEWLY ISSUED CHEROKEE INC COMMON STOCK 9306020015 930602 INTERNATIONAL TAIWAN'S SURPLUS NARROWS TAIPEI TAIWAN TAIWAN'S CURRENT ACCOUNT SURPLUS NARROWED 28 TO 171 BILLION US DOLLARS IN THE FIRST QUARTER OF THIS YEAR FROM 238 BILLION IN THE YEAREARLIER QUARTER THE CENTRAL BANK OF CHINA TAIWAN'S CENTRAL BANK SAID THE NATION'S MERCHANDISE TRADE SURPLUS IN THE FIRST QUARTER REACHED 220 BILLION WITH EXPORTS AMOUNTING TO 199 BILLION AND IMPORTS HITTING 177 BILLION COMPARISONS WITH YEAREARLIER FIGURES AREN'T IMMEDIATELY AVAILABLE THE CURRENT ACCOUNT WHICH CONSISTS OF VISIBLE AND INVISIBLE TRADE AND TRANSFER PAYMENTS IS THE NATION'S TRADE BALANCE IN GOODS AND SERVICES AS WELL AS INVESTMENT INCOME AND GOVERNMENT PAYMENTS 9306020014 930602 BUSINESS BRIEF PROMUS COS EMBASSY SUITES TO TRANSFER ITS INTEREST IN FIVE HOTELS PROMUS COS SAID ITS EMBASSY SUITES HOTEL DIVISION AGREED TO TRANSFER ITS OWNERSHIP INTEREST IN FIVE HOTELS FOR ABOUT 695 MILLION THE HOTELS ARE LOCATED IN FLORIDA TENNESSEE AND TEXAS EMBASSY SUITES WILL CONTINUE TO MANAGE THE PROPERTIES AND RETAIN FRANCHISE AGREEMENTS PROMUS BASED IN MEMPHIS TENN SAID THE TRANSFER WILL INVOLVE MERGING TWO OF EMBASSY SUITES' SUBSIDIARY COMPANIES WITH TWO LIMITED PARTNERSHIPS CONTROLLED BY FELCOR INC IN DALLAS FELCOR IS AN OWNER OF THE GENERAL PARTNER IN THE EMBASSY SUITES HOTEL IN TULSA OKLA PROCEEDS WILL BE USED TO REDUCE DEBT AT PROMUS A HOTEL AND CASINO COMPANY AND AT EMBASSY SUITES 9306020013 930602 LAW LEGAL BEAT COCAINETAINTED CASH IS FAULTED AS EVIDENCE IN DRUG PROSECUTIONS BY ARTHUR S HAYES STAFF REPORTER OF THE WALL STREET JOURNAL CHANCES ARE PRETTY GOOD THAT THERE ARE TRACES OF COCAINE IN YOUR WALLET RIGHT NOW AND THAT'S BAD NEWS FOR DRUG PROSECUTORS THE PROBLEM IS THAT COCAINE STICKS TO CASH WHENEVER MONEY IS HANDLED BY DRUG DEALERS AND USERS AND STUDIES SHOW THAT COCAINE IS IN SUCH WIDE USE NATIONALLY THAT A SIZABLE PERCENTAGE OF PAPER MONEY BEARS TRACES OF IT A FINDING THAT COURTS ARE STARTING TO CITE IN RULING AGAINST PROSECUTORS WITHIN THE PAST 18 MONTHS TWO FEDERAL APPEAL COURTS HAVE STRONGLY QUESTIONED THE GOVERNMENT'S RELIANCE ON COCAINETAINTED CASH AND IN A RULING IN APRIL A FEDERAL TRIAL JUDGE SAID THE MERE PRESENCE OF SUCH COCAINE TRACES DOESN'T GIVE OFFICIALS THE NECESSARY PROBABLE CAUSE TO LAUNCH AN EXTENSIVE SEARCH FOR DRUGS OR TO CONFISCATE THE CASH NANCY HOLLANDER PRESIDENT OF THE NATIONAL ASSOCIATION OF CRIMINAL DEFENSE LAWYERS SAID WE'RE GOING TO SEE MORE AND MORE LAWYERS USING THESE RULINGS IN ARGUMENTS TO SUPPRESS EVIDENCE BY CHALLENGING THE VALIDITY OF DOG SNIFFS DETECTING COCAINE AND CONFISCATION OF CASH THE COURT DECISIONS CITE THE FINDINGS OF SCIENTIFIC AND INFORMAL TESTS CONDUCTED IN THE LATE 1980S SOME OF THE TESTS SHOWED THAT MORE THAN 95 OF THE CASH IN CIRCULATION MAY BE COCAINECONTAMINATED BECAUSE RESIDUE FROM THE DRUG REMAINS LONG AFTER THE INITIAL EXPOSURE ONE OF THE STUDIES THAT HAS PROVED MOST DAMAGING TO PROSECUTORS WAS DONE BY SANFORD A ANGELOS A FORENSIC CHEMIST WITH THE FEDERAL DRUG ENFORCEMENT ADMINISTRATION'S NORTH CENTRAL LABORATORY IN CHICAGO THE STUDY CONCLUDED THAT A THIRD OF THE SAMPLES TAKEN FROM SEVERAL CHICAGO BANKS AND FROM THE FEDERAL RESERVE BANK OF CHICAGO HAD TRACES OF COCAINE THE TEST RESULTS WERE REPORTED IN AN UNDATED INTERNAL DEA MEMO AND FIRST SURFACED PUBLICLY AS EVIDENCE IN A TRIAL IN LOS ANGELES THREE YEARS AGO MORE IMPORTANT MR ANGELOS SAID IN THE MEMO THE BELTS OF THE BILL SORTER AT THE RESERVE BANK CONTINUED TO SPREAD THE CONTAMINATION TO MORE AND MORE CASH MR ANGELOS RECOMMENDED AMONG OTHER THINGS THAT TRACE ANALYSIS OF CURRENCY FOR GENERAL ENFORCEMENT OR SEIZURE BE STOPPED BUT THE STUDY WASN'T AUTHORIZED BY THE DEA LAST YEAR THE BUREAU OF NATIONAL AFFAIRS' CRIMINAL PRACTICE MANUAL A PRIVATE BIWEEKLY PUBLICATION FOR CRIMINAL ATTORNEYS REPORTED THAT A DEA SPOKESMAN DISMISSED THE ANGELOS REPORT AS JUST ONE MAN'S UNSCIENTIFIC ASSESSMENT THE ANGELOS STUDY WAS RECENTLY CITED BY THE ATTORNEY FOR WILLIE L JONES A NASHVILLE LANDSCAPER WHO WENT TO COURT TO RECOVER 9000 THAT US DRUG AGENTS SEIZED FROM HIM IN 1991 UNDER THE FEDERAL RACKETEER INFLUENCED AND CORRUPT ORGANIZATIONS LAW AS IN MANY CASHSEIZURE CASES MR JONES HAD BEEN STOPPED AT AN AIRPORT WHILE HE WAS WAITING TO CATCH A FLIGHT THE RICO LAW ALLOWS THE GOVERNMENT TO SEIZE CASH FROM PEOPLE SUSPECTED OF CERTAIN CRIMES ON THE THEORY THAT THE ASSETS ARE RELATED TO CRIMINAL ACTIVITY IN APRIL IN APPARENTLY THE FIRST RULING OF ITS KIND JUDGE THOMAS A WISEMAN JR OF FEDERAL COURT IN NASHVILLE ORDERED THE GOVERNMENT RETURN THE CASH TO MR JONES THE JUDGE SAID IN HIS RULING THAT THE PRESENCE OF TRACE NARCOTICS ON CURRENCY DOES NOT YIELD ANY RELEVANT INFORMATION WHATSOEVER ABOUT THE CURRENCY'S HISTORY MICHAEL L RODEN AN ASSISTANT US ATTORNEY IN NASHVILLE SAID NO DECISION HAD BEEN MADE ABOUT APPEALING JUDGE WISEMAN'S RULING THE SIXTH US CIRCUIT COURT OF APPEALS IN CINCINNATI ALSO RAISED QUESTIONS ABOUT THE USE OF COCAINETAINTED CASH AS EVIDENCE IN A DECISION IN JANUARY INVOLVING THE SEIZURE OF 53082 THE COURT CITED AMONG OTHER STUDIES A TEST CONDUCTED FOUR YEARS AGO BY LEE HEARN CHIEF TOXICOLOGIST FOR THE DADE COUNTY MEDICAL EXAMINER'S OFFICER IN MIAMI IN A STUDY OF CURRENCY FROM BANKS IN CITIES AROUND THE COUNTRY MR HEARN CONCLUDED THAT 97 OF THE BILLS TESTED POSITIVE FOR COCAINE THE SIXTH CIRCUIT PANEL SAID THAT BECAUSE OF SUCH TESTS A COURT SHOULD SERIOUSLY QUESTION THE VALUE OF A DOG'S ALERT INDICATING COCAINE WITHOUT OTHER PERSUASIVE EVIDENCE THE APPEALS COURT PANEL THREW OUT THE SEIZURE AS UNCONSTITUTIONAL ON OTHER GROUNDS THE US ATTORNEY IN DETROIT YESTERDAY ASKED THE ENTIRE APPEALS COURT TO REVIEW THE PANEL'S DECISION THE US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA RAISED SIMILAR DOUBTS ABOUT THE USE OF COCAINECONTAMINATED CASH AS EVIDENCE IN A CASE LAST YEAR CITING THE STUDIES THE COURT SAID THE GOVERNMENT HAD CONDUCTED AN IMPROPER SEARCH AND SEIZURE IN TAKING CASH AND OTHER ITEMS FROM A TRAVELER ON A TRAIN PROSECUTORS' RELIANCE ON SUCH EVIDENCE PROMPTED A STATE APPEALS COURT IN MIAMI TO GO SO FAR AS TO OVERTURN A DRUGPOSSESSION CONVICTION IN APRIL THE COURT RULED THAT A COCAINECONTAMINATED DOLLAR BILL WASN'T ENOUGH EVIDENCE TO SUSTAIN A DRUGPOSSESSION CONVICTION IN SOUTH FLORIDA WHERE COCAINE CAN BE FOUND ON MUCH OF THE CURRENCY PROSECUTORS IN FLORIDA SAID THEY WOULDN'T APPEAL THE STATE APPEALS COURT'S REVERSAL OF THE DRUG CONVICTION THEODORE S GREENBERG CHIEF OF THE JUSTICE DEPARTMENT'S MONEYLAUNDERING SECTION SAID THE RECENT RULINGS HAVEN'T DISCOURAGED THE GOVERNMENT'S USE OF COCAINETAINTED CASH AS EVIDENCE YES WE'LL CONTINUE TO USE THESE TECHNIQUES AS IS NECESSARY IN ALL THE CASES MR GREENBERG SAID ONE REASON PROSECUTORS SAY IS THAT OTHER EVIDENCE USUALLY BACKS UP SEIZURE OF CASH IN SUCH CASES FOR INSTANCE THEY ARGUE THAT IN MANY CASES WHERE CURRENCY IS SEIZED THE SUSPECTS HAVE PREVIOUS ARREST RECORDS OR CAN'T EXPLAIN WHY THEY ARE TRAVELING WITH SUCH LARGE AMOUNTS OF CASH JONES VS US DRUG ENFORCEMENT ADMINISTRATION US DISTRICT COURT NASHVILLE NO 3910520 US VS 53082 GREGORY BRUNSON SIXTH US CIRCUIT COURT OF APPEALS NO 912335 US VS 639558 US COURT OF APPEALS FOR THE DISTRICT OF COLUMBIA NO 915063 LORD VS FLORIDA DISTRICT COURT OF APPEAL THIRD DISTRICT NO A PENNSYLVANIA MAN WHO WAS PARALYZED IN A MOTORCYCLE ACCIDENT IN 1988 WON 198 MILLION AGAINST HONDA MOTOR CO IN A SUIT THAT BLAMED THE CYCLE'S RUBBERTIPPED SIDE STAND FOR THE ACCIDENT FILED ON BEHALF OF ERIE RESIDENT TODD EIMERS NOW PARALYZED FROM THE NECK DOWN THE SUIT CONTENDED THAT THE SIDESTAND USED TO PROP HIS 550 CUBICCENTIMETER NIGHTHAWK MOTORCYCLE WHEN THE CYCLE WAS PARKED FAILED TO RETRACT WHEN HE RODE OFF ACCORDING TO THE SUIT THE SIDE STAND DUG INTO THE ROAD AS MR EIMERS ROUNDED A LEFT TURN AT ABOUT 55 MILES AN HOUR CATAPULTING HIM OFF THE STANDS WERE MOUNTED ON AN ESTIMATED THREE MILLION HONDA MOTORCYCLES BETWEEN 1975 AND 1989 WHEN HONDA AND OTHER MANUFACTURERS SWITCHED TO A LOCKING MECHANISM THAT PREVENTS THE MOTORCYCLE FROM BEING DRIVEN UNLESS THE SIDE STAND IS UP A SPOKESMAN FOR HONDA DECLINED TO COMMENT ON THE NUMBER OF LAWSUITS PENDING AGAINST THE COMPANY OVER THE ALLEGED DEFECT OR THE EXTENT OF THE COMPANY'S POTENTIAL LIABILITY FROM PENDING CLAIMS ACCORDING MR EIMERS'S LAWYERS IRA LEESFIELD AND JOEL FOGEL IN MIAMI THE CASE IS THE FIRST AGAINST HONDA TO GO TO TRIAL FROM TIME TO TIME PEOPLE DO FORGET THAT THEIR SIDE STAND IS DOWN AND THERE'S NOTHING TO REMIND YOU SAID MR LEESFIELD THAT IS THE DEFECT THERE'S NO REMINDER HONDA'S DEFENSE ATTORNEY WILLIAM PIETRAGALLO AT THE PITTSBURGH LAW FIRM OF PIETRAGALLO BOSICK & GORDON ATTRIBUTED THE VERDICT TO THE JURY'S SYMPATHY FOR MR EIMERS HONDA MAINTAINED AT TRIAL THAT THE STAND WAS IN ITS UP POSITION WHEN MR EIMERS ROUNDED THE TURN AND THAT EVEN IF IT HAD BEEN IN THE DOWN POSITION IT WOULD HAVE KICKED UP AUTOMATICALLY UPON CONTACT WITH THE GROUND MR PIETRAGALLO SAID HONDA WILL APPEAL ON NUMEROUS GROUNDS INCLUDING A DECISION BY THE TRIAL JUDGE TO DISALLOW TESTIMONY FROM A PHYSICIAN WHO CLAIMED THAT MR EIMERS'S BREATH SMELLED OF ALCOHOL WHEN HE WAS ADMITTED TO THE HOSPITAL AND THAT HE SPOKE OF DRINKING FIVE TO SIX BEERS BEFORE THE ACCIDENT MR PIETRAGALLO SAID THE JUDGE REFUSED TO PERMIT THE TESTIMONY BECAUSE A SUBSEQUENT BLOOD TEST SHOWED A VERY LOW BLOOD ALCOHOL LEVEL ACCORDING TO MR EIMERS'S LAWYERS HONDA HAS VOLUNTARILY RECALLED 300000 MOTORCYCLES EQUIPPED WITH RUBBERTIPPED STANDS IN WEST GERMANY AND REFITTED THEM WITH THE LOCKING DEVICE THAT INSURES RIDERS RAISE THEIR STANDS CITING PENDING LITIGATION A HONDA SPOKESMAN DECLINED TO COMMENT OREGON'S HIGHEST COURT LET STAND A RULING THAT REQUIRES INSURERS TO PAY FOR PROPERTY DAMAGE CAUSED BY THE MAKING OF METHAMPHETAMINE IN HOMES USED AS ILLEGAL DRUG LABORATORIES THE CASE SIMILAR TO FOUR OTHERS IN OREGON AROSE AFTER A RENTAL PROPERTY WAS USED AS A MAKESHIFT DRUG LAB THE PROPERTY OWNER ASKED THE INSURER TO PAY FOR CLEANUP OF CHEMICAL RESIDUE ON WALLS FURNITURE AND FLOORS A LOWER COURT SAID THE RESIDUE WASN'T CONTAMINATION WHICH WOULD HAVE BEEN EXCLUDED FROM STANDARD COVERAGE THE HOMEOWNER EVENTUALLY WAS AWARDED 56000 TO PAY FOR THE CLEANUP MORE ALARMING TO INSURERS THE COURT SAID CONTAMINATION STEMMING FROM A SUDDEN EVENT RATHER THAN GRADUAL DAMAGE GENERALLY MUST BE COVERED STATE FARM FIRE & CASUALTY CO THE DEFENDANT IN THE CASE WARNED THAT THE RULING ALSO COULD AFFECT CLAIMS ARISING FROM STORAGETANK LEAKS PESTICIDE APPLICATION AND THE AIRBORNE RELEASE OF ASBESTOS THE INSURANCE ENVIRONMENTAL LITIGATION ASSOCIATION A TRADE GROUP REPRESENTING 19 INSURERS FILED A BRIEF OPPOSING THE LOWER COURT'S RULING MILO GEYELIN CONTRIBUTED TO THIS ARTICLE 9306020012 930602 WHO'S NEWS ICI AMERICAS INC ICI AMERICAS INC WILMINGTON DEL JOHN DANZEISEN 45 YEARS OLD WAS NAMED CHAIRMAN SUCCEEDING BEN H LOCHTENBERG 62 WHO IS RETIRING JULY 31 AS PLANNED ICI AMERICAS THE US ARM OF LONDON'S IMPERIAL CHEMICAL INDUSTRIES PLC ALSO NAMED J KENT RIEGEL 54 TO THE NEWLY CREATED POST OF PRESIDENT EFFECTIVE AUG 1 MR RIEGEL FORMERLY WAS VICE PRESIDENT AND GENERAL COUNSEL HE WILL REMAIN GENERAL COUNSEL MR DANZEISEN PREVIOUSLY WAS CHIEF EXECUTIVE OF ICI PAINTS IN NORTH AMERICA AN ICI UNIT AND PRESIDENT OF GLIDDEN CO ALSO AN ICI UNIT HE WILL RETAIN BOTH POSITIONS 9306020011 930602 GE AIRCRAFT GETS CHINESE ORDER EVENDALE OHIO GE AIRCRAFT ENGINES THE JET ENGINE SUBSIDIARY OF GENERAL ELECTRIC CO SAID CHINA AVIATION SUPPLIES CORP ORDERED 10 ENGINES VALUED AT AS MUCH AS 225 MILLION TO POWER ITS AIRBUS INDUSTRIE AIRCRAFT IN ITS CHINA NORTHWEST AIRLINES FLEET THE XIANBASED AIR CARRIER WILL BEGIN TAKING DELIVERY OF ITS NEW ENGINES IN 1994 SOME OF THE ENGINES ARE MADE BY CFM INTERNATIONAL A JOINT VENTURE OF GE AIRCRAFT ENGINES AND FRANCE'S SNECMA JETENGINE MANUFACTURING COMPANY 9306020010 930602 WASHINGTON FEDERAL RIGHTS OFFER HERNDON VA WASHINGTON FEDERAL SAVINGS BANK SAID THAT UNDER THE TERMS OF A PREVIOUSLY PLANNED RIGHTS OFFERING SHAREHOLDERS OF RECORD THURSDAY WILL RECEIVE THE RIGHT TO PURCHASE 22 SHARES OF COMMON STOCK AT 225 APIECE FOR EACH COMMON SHARE HELD IN OVERTHECOUNTER COMPOSITE TRADING YESTERDAY WASHINGTON FEDERAL CLOSED UNCHANGED AT 425 9306020009 930602 ABREAST OF THE MARKET INDUSTRIALS PIERCE RECORD HIGH THEN EASE TO END WITH 2491 GAIN BY DAVE PETTIT STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK SURGING BOND PRICES LIFTED STOCKS AMID DECLINING INFLATION FEARS AND RISING HOPE THE FEDERAL BUDGET DEFICIT WILL BE CUT THE DOW JONES INDUSTRIAL AVERAGE GAINED MORE THAN 40 POINTS INTRADAY PIERCING ITS RECORD CLOSING HIGH OF 355483 BEFORE SETTLING BACK TO CLOSE WITH A GAIN OF 2491 OR 071 TO 355234 IT WAS ALL THE BOND MARKET YESTERDAY SAID HUGH JOHNSON MARKET STRATEGIST AT FIRST ALBANY LONGTERM GOVERNMENT SECURITIES ROCKETED MORE THAN 1 1/4 POINTS PUSHING THE YIELD ON THE 30YEAR TREASURY DOWN TO 688 AND A SELLOFF IN COMMODITIES PRICES ASSUAGED INFLATION FEARS AMONG BOTH STOCK AND BOND INVESTORS MEANWHILE MR JOHNSON SAID INVESTORS WERE ENCOURAGED BY GROWING SUPPORT FOR PRESIDENT CLINTON'S DEFICITREDUCTION PLAN OVER THE WEEKEND MAVERICK SEN DAVID BOREN D OKLA EXPRESSED OPTIMISM THE PACKAGE WHICH HE PREVIOUSLY OPPOSED WILL CLEAR THE SENATE YESTERDAY THE PRESIDENT SAID HE WILL ACCEPT GREAT CUTS IN TAXES AND SPENDING TO MUSTER CONGRESSIONAL SUPPORT FOR THE INITIATIVE THE STANDARD & POOR'S 500STOCK INDEX ADDED 364 OR 081 TO 45383 THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX INCREASED 168 OR 068 TO 25028 AND THE DOW JONES EQUITY MARKET INDEX JUMPED 347 OR 081 TO 43049 EACH WAS WITHIN A POINT OF ITS RECORD DURING THE DAY BEFORE RETREATING LATE IN THE SESSION THERE WERE 1231 ADVANCERS AND 712 DECLINERS VOLUME ROSE TO 229621720 FROM FRIDAY'S 207762190 THE STOCK MARKET WAS CLOSED MONDAY FOR MEMORIAL DAY JONATHAN C DODD MARKET ANALYST AT DEAN WITTER REYNOLDS ATTRIBUTED THOSE GAINS TO A CONTINUING SHIFT BY INVESTORS TOWARD THESE SOCALLED LATE CYCLE INDUSTRIAL STOCKS WHICH PERFORM WELL IN THE LTER PART OF A BULL MARKET YESTERDAY MORNING'S ECONOMIC NEWS LARGELY MET EXPECTATIONS THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT SAID ITS INDEX OF BUSINESS ACTIVITY ROSE TO 511 LAST MONTH FROM 497 IN APRIL THE READING ABOVE 50 INDICATES THE MANUFACTURING ECONOMY GREW LAST MONTH AFTER CONTRACTING THE PRIOR PERIOD ELSEWHERE THE COMMERCE DEPARTMENT SAID THAT IN APRIL PERSONAL INCOME FELL 04 AND PERSONAL CONSUMPTION SPENDING JUMPED 07 BOTH FIGURES ARE AFTER ADJUSTING FOR INFLATION THE STRONG PERSONAL SPENDING REPORT HELPED ECONOMICALLY SENSITIVE STOCKS SAID FIRST ALBANY'S MR JOHNSON TECHNOLOGY STOCKS SURGED LED BY HEWLETTPACKARD WHICH ADVANCED 2 1/4 TO 85 5/8 AND MICROSOFT WHICH RALLIED 3 5/8 TO 96 1/4 IN OVERTHECOUNTER TRADING A MICROSOFT SPOKESMAN SAID A JUDGE COULD SOON END APPLE COMPUTER'S COPYRIGHT SUIT AGAINST THE REDMOND WASH COMPANY AND PALO ALTO CALIFBASED HEWLETT APPLE HAS CONTENDED THE TWO COMPANIES SOLD PRODUCTS VIOLATING COPYRIGHTS THAT COVER THE WAY ITS MACINTOSH COMPUTERS OPERATE AFTER THE CLOSE OF TRADING A DISTRICT COURT JUDGE GRANTED A MOTION TO DISMISS THE CLAIMS AGAINST MICROSOFT AND HEWLETT HEWLETT ALSO UNVEILED DETAILS ABOUT A SERIES OF NEW PRODUCTS AMONG OTHER TECHNOLOGY STOCKS COMPAQ COMPUTER JUMPED 1 3/4 TO 59 5/8 MOTOROLA CLIMBED 2 5/8 TO 83 5/8 AND TEXAS INSTRUMENTS INCREASED 1 1/4 TO 66 AFFILIATED PUBLICATIONS ADDED 3/4 TO 13 1/8 THE BOSTONBASED OWNER OF THE BOSTON GLOBE IS SAID TO HAVE HAD MERGER TALKS WITH NEW YORK TIMES CO AFFILIATED IS SAID BY ONE UNNAMED SOURCE TO HAVE REJECTED AN OFFER VALUED AT 1550 A SHARE OR 109 BILLION SHARES OF NEW YORK TIMES WERE UNCHANGED AT 28 7/8 BALLY MANUFACTURING GAINED 1 7/8 TO 9 3/8 ON HEAVY VOLUME THE CHICAGO COMPANY SAID IT LEASED PROPERTY IN TUNICA MISS UPON WHICH IT PLANS TO BUILD A DOCKSIDE CASINO THE CORPORATION ALSO HAS PLANS TO OPEN A DOCKSIDE GAMING FACILITY IN BILOXI MISS OTHER CASINO STOCKS SURGED PROMUS ADDED 3/4 TO 47 1/8 AND CIRCUS CIRCUS ROSE 3/4 TO 60 5/8 ON THE NASDAQ GRAND CASINO LEAPT 3 TO 51 AND NEWLY PUBLIC HOLLYWOOD CASINO ROCKETED 4 3/4 TO 31 THAT COMPANY WENT PUBLIC FRIDAY AT JUST 16 A SHARE COMMODORE INTERNATIONAL SHED 1 TO 3 THE BAHAMAS COMPUTER CONCERN LATE FRIDAY POSTED A LOSS OF 537 A SHARE FOR THE THIRD QUARTER ENDED MARCH 31 COMPARED WITH NET INCOME A YEAR AGO OF 12 CENTS THE LATEST PERIOD INCLUDED SEVERAL WRITEDOWNS GENERAL ELECTRIC JUMPED 1 1/4 TO 94 AN ARTICLE IN THE WALL STREET JOURNAL HIGHLIGHTED THE STRENGTH OF THE COMPANY'S FINANCIAL UNIT WHICH CONTRIBUTES ONETHIRD OF GE'S PROFITS AND PROVIDES IMPORTANT SERVICES TO OTHER UNITS OF THE FAIRFIELD CONN CONCERN THE AMERICAN STOCK EXCHANGE MARKET VALUE INDEX GAINED 038 TO 43860 THERE WERE 308 ADVANCERS AND 286 DECLINERS 9306020008 930602 INTERNATIONAL REFORM IN CHINA ADDS TO CURRENCY WOES FOREIGN FIRMS ARE TURNING TO BLACK MARKET DEALS AS DOLLARS GROW SCARCE BY JAMES MCGREGOR STAFF REPORTER OF THE WALL STREET JOURNAL BEIJING PSST CHANGE MONEY PSST CHANGE MONEY SINCE CHINA OPENED ITS DOORS 15 YEARS AGO THIS HAS BEEN THE CONSTANT CALL FROM HUSTLERS LURKING OUTSIDE HOTELS SEEKING TO TRADE CHINESE YUAN FOR FOREIGN CURRENCY AT PREMIUM BLACK MARKET RATES BUT TODAY AS CHINA'S OVERHEATED ECONOMY OVERWHELMS ITS HALFREFORMED FINANCIAL SYSTEM SIMILAR REFRAINS ARE COMING FROM THE OFFICES OF FOREIGN COMPANIES IN CHINA FOREIGN BUSINESS EXECUTIVES DON'T LOITER OUTSIDE HOTELS BUT THEY DO DISPATCH EMPLOYEES WITH CHECKBOOKS AND CELLULAR PHONES TO CITIES ACROSS CHINA IN SEARCH OF BLACK MARKET CURRENCY DEALS THAT'S BECAUSE IN THE PAST FEW MONTHS CHINA'S OFFICIAL CURRENCY EXCHANGE SYSTEM HAS BECOME ALL BUT USELESS MAKING THE BLACK MARKET THE ONLY GAME IN TOWN THIS IS JUST ANOTHER STEP IN THE CRIMINALIZATION OF CHINA'S ECONOMIC SYSTEM SAYS A US BUSINESSMAN WITH YEARS IN CHINA PRETTY SOON MINISTER OF PUBLIC SECURITY TAO SIJU WILL HAVE MORE INFLUENCE OVER THE ECONOMY THAN ANY OTHER OFFICIAL WHILE THAT MAY BE AN EXAGGERATION FOREIGN CORPORATIONS THAT ARE NORMALLY FASTIDIOUS ABOUT THE LAW ARE IN THE UNCOMFORTABLE POSITION OF USING THE ILLEGAL BLACK MARKET OR SHUTTING DOWN THE PROBLEM STEMS FROM GOVERNMENT CONTROLS ON EXCHANGE RATES AS WELL AS ECONOMIC PRESSURES THAT HAVE MADE US DOLLARS SCARCE AN OFFICIAL FROM THE STATE ADMINISTRATION OF EXCHANGE CONTROL WHICH SUPERVISES CHINA'S CURRENCY TRADING CENTERS SAYS THE GOVERNMENT REALIZES THE SITUATION IS DIFFICULT BUT ANYBODY USING THE BLACK MARKET IS RISKING PROSECUTION IN THE NEAR FUTURE WE HOPE TO MAKE THE EXCHANGE RATE MORE REASONABLE HE SAID FOREIGN BUSINESS EXECUTIVES ARE SKITTISH ABOUT DISCUSSING THEIR CURRENCY TRAVAILS THOSE INTERVIEWED FOR THIS ARTICLE AGREED TO SPEAK ONLY IF GRANTED ANONYMITY PEOPLE WERE WILLING TO TALK HOWEVER BECAUSE THEY BELIEVE THE PROBLEM IS GETTING WORSE AS DEMAND FOR US DOLLARS IN CHINA SOARS FAR PAST SUPPLY WIDENING THE DISCREPANCY BETWEEN THE OFFICIAL AND BLACK MARKET EXCHANGE RATES CURRENTLY THE BLACK MARKET RATE IS ABOUT 10 YUAN FOR ONE US DOLLAR WHILE THE OFFICIAL RATE IS 57 THOSE MOST AFFECTED BY THE CURRENCY CRISIS ARE FOREIGN COMPANIES THAT MANUFACTURE PRODUCTS IN CHINA FOR THE DOMESTIC MARKET BUT RELY ON IMPORTED COMPONENTS OR RAW MATERIALS THAT MUST BE PAID FOR IN DOLLARS AND OTHER HARD CURRENCIES FOREIGN COMPANIES THAT MAKE CONSUMER PRODUCTS SUCH AS PROCESSED FOODS OR SHAMPOOS CAN USE THEIR CHINESE YUAN EARNINGS TO PURCHASE MOST OF THEIR RAW MATERIALS LOCALLY BUT MANY OTHER FOREIGN COMPANIES RANGING FROM AUTO MAKERS TO INDUSTRIAL MACHINERY MANUFACTURERS TO COMPANIES THAT ASSEMBLE ELECTRONICS FROM IMPORTED COMPONENTS HAVE NO CHOICE BUT TO TURN A LARGE SHARE OF THEIR CHINESE YUAN EARNINGS INTO US DOLLARS FOR IMPORTS I'M TURNING INTO A MANIC DEPRESSIVE SAID ONE FOREIGN EXECUTIVE WHOSE COMPANY IS RELUCTANTLY BUT HEAVILY INVOLVED IN THE BLACK MARKET MY MIDMORNING EUPHORIA TURNS INTO AFTERNOON DEPRESSION IF A CURRENCY DEAL FALLS THROUGH THE PROBLEM IS THAT THERE ARE HARDLY ANY DOLLARS AVAILABLE IN CHINA'S OFFICIAL CURRENCY EXCHANGE CENTERS KNOWN AS SWAP CENTERS SINCE THE FIRST ONE WAS OPENED IN SHENZHEN IN 1985 THEY HAVE SPREAD TO ALMOST EVERY MAJOR CITY AND SPECIAL ECONOMIC ZONE THERE ARE NOW MORE THAN 100 SWAP CENTERS THE SWAP CENTERS GIVE CHINESE AND FOREIGN ORGANIZATIONS THE OPPORTUNITY TO EXCHANGE CURRENCY AT RATES THAT ARE ALLOWED TO RESPOND WITHIN GOVERNMENTSET LIMITS TO SUPPLY AND DEMAND LAST YEAR THEY HANDLED 26 BILLION IN TRANSACTIONS UP FROM 62 BILLION IN 1988 THE SYSTEM WORKED SMOOTHLY FOR THE PAST FEW YEARS AS CHINA RAN A WORLDWIDE TRADE SURPLUS AND LURED SIGNIFICANT AMOUNTS OF FOREIGN INVESTMENT WITH MORE US DOLLARS FLOWING INTO CHINA THAN FLOWING OUT THE DISPARITY BETWEEN THE OFFICIAL EXCHANGE RATE AND THE SWAP MARKET RATE BECAME QUITE CLOSE IN JANUARY AND FEBRUARY 1992 FOR EXAMPLE THE OFFICIAL RATE WAS 54 YUAN TO THE DOLLAR AND THE SWAP RATE WAS ABOUT 58 THEN PARAMOUNT LEADER DENG XIAOPING MADE HIS FAMOUS TRIP TO SOUTHERN CHINA TO ACCELERATE ECONOMIC REFORMS SINCE THEN CHINA HAS BEEN INFECTED WITH A GETRICHQUICK MENTALITY THAT HAS FED RAMPANT SPECULATION IN STOCKS PROPERTY AND CURRENCY THERE HAS ALSO BEEN A SURGE OF OFFSHORE INVESTMENT BY CHINESE ORGANIZATIONS AND A DELUGE OF IMPORTS CHINA HAD A 17 BILLION TRADE DEFICIT IN THE FIRST FOUR MONTHS OF 1993 THE RESULTING LOSS OF DOLLARS SENT SWAP MARKET RATES SOARING IN MIDFEBRUARY WHEN THE RATE PEAKED AT 85 YUAN TO THE DOLLAR THE GOVERNMENT INTERVENED SINCE THEN THERE HAS BEEN A CAP OF ABOUT EIGHT YUAN TO THE DOLLAR ON THE SWAP RATE BUT AT THAT PRICE NOBODY IS WILLING TO SELL DOLLARS SO THE BLACK MARKET HAS TAKEN OVER STREET CORNER VENDORS NOW SERVE AS CURRENCY EXCHANGE CENTERS FOR SMALL BUSINESSES IN BEIJING ELDERLY WOMEN WHO RUN FRUIT STANDS DON'T BAT AN EYE AT EXCHANGING SEVERAL THOUSAND US DOLLARS LARGER TRANSACTIONS ARE CONDUCTED BETWEEN COMPANIES SOME FOREIGN COMPANIES HAVE FORMED SQUADS OF EMPLOYEES WHO SEARCH FOR BLACK MARKET TRANSACTIONS FULLTIME THEY CONTACT FRIENDS RELATIVES AND PREVIOUS BUSINESS PARTNERS OR RANDOMLY TELEPHONE FACTORIES OR IMPORTEXPORT FIRMS THAT HAVE EXPORT EARNINGS FOREIGN BUSINESS EXECUTIVES SAY BRANCHES OF SOME STATEOWNED BANKS HAVE BECOME BIG PLAYERS IN THE BLACK MARKET TO KEEP FROM GETTING TOO FAR OUTSIDE THE LAW SOME FOREIGN COMPANIES TRY TO BRING THEIR BLACK MARKET TRANSACTIONS INTO THE SWAP MARKETS ONCE THEY FIND A PARTNER THIS IS ACCOMPLISHED BY DOING PART OF THE TRANSACTION AT THE CAPPED RATE IN THE SWAP MARKET AFTERWARD THE DIFFERENCE BETWEEN THE SWAP RATE AND THE BLACK MARKET RATE IS MADE UP IN A PRIVATE TRANSACTION THE GOVERNMENT HAS ATTEMPTED TO PUSH DOLLARS INTO THE SWAP MARKETS BY FORCING SOME CHINESE COMPANIES TO SELL DOLLARS BUT THAT HASN'T HELPED FOREIGN COMPANIES MUCH THE SWAP CENTER ACKNOWLEDGED TO US THAT THEY PUT FOREIGN JOINT VENTURES AT THE BOTTOM OF THE PRIORITY LIST SAID A FOREIGN DIPLOMAT IN SOUTH CHINA MANY DON'T EXPECT THE SITUATION TO CHANGE UNTIL CHINA MAKES A SIGNIFICANT ADJUSTMENT TO ITS OFFICIAL FOREIGN EXCHANGE RATE AS SPECULATORS WHO ARE HOARDING DOLLARS ANTICIPATE BUT EVEN THAT MAY NOT BE ENOUGH FOREIGN BUSINESSMEN SAY THAT SO MANY GOVERNMENT ORGANIZATIONS AND OFFICIALS ARE GETTING RICH FROM THE BLACK MARKET CURRENCY TRANSACTIONS THERE ARE POWERFUL FORCES AGAINST CHANGE THE SYSTEM IS COMPLETELY CORRUPT SAID AN AMERICAN BUSINESSMAN EVERYBODY'S SUPPOSED TO BE WORKING FOR THE GOVERNMENT BUT THEY ARE DOING THESE DEALS FOR THEMSELVES AND THE GOVERNMENT IS GETTING THE SHORT END OF THE STICK 9306020007 930602 WHO'S NEWS QUADREX CORP QUADREX CORP GAINESVILLE FLA RUSSELL J HAMMER WAS ELECTED TO THE NEW POSITION OF PRESIDENT OF THIS ENGINEERING AND WASTEMANAGEMENT CONCERN MR HAMMER 40 YEARS OLD HAD BEEN EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER HE WILL RETAIN THE LATTER POSITION THE COMPANY'S OPERATING AND STAFF DIVISIONS WILL REPORT TO MR HAMMER ITS ETHANOL PROGRAMS QUALITY ASSURANCE AND CORPORATE COMMUNICATIONS WILL REPORT TO WILLIAM B DERRICKSON WHO REMAINS CHAIRMAN AND CHIEF EXECUTIVE 9306020006 930602 HEARD ON THE STREET MORTGAGE FIRMS COULD BE GOOD BET SOME BULLS SAY BY JEFF D OPDYKE STAFF REPORTER OF THE WALL STREET JOURNAL JUDGING BY THE RECENT SWOON IN MORTGAGEBANKING STOCKS INVESTORS SEEM TO BELIEVE THAT THE GREAT AMERICAN LOANREFINANCING BINGE IS OVER WITH LONGTERM INTEREST RATES HOVERING NEAR A TWODECADE LOW COMPANIES SUCH AS COUNTRYWIDE CREDIT INDUSTRIES MARGARETTEN FINANCIAL NORTH AMERICAN MORTGAGE AND FLEET MORTGAGE GROUP HAVE WATCHED THEIR STOCKS SURRENDER SOME 20 OF THEIR VALUE SINCE PEAKING IN MIDMARCH IN THE NASDAQ STOCK MARKET IMPERIAL CREDIT INDUSTRIES IS OFF 46 ALL OF WHICH WOULD MAKE PERFECT SENSE IF THIS WERE 1987 AND THESE COMPANIES WERE DEPENDING ON LOAN ORIGINATION EXCLUSIVELY FOR THEIR SURVIVAL BACK THEN AN UPTURN IN RATES CLOBBERED THE GROUP BUT MUCH HAS CHANGED DURING THE PAST FIVE YEARS SAY SOME BULLISH ANALYSTS WHO CONTEND THE SKEPTICS ARE OVERLOOKING A GOOD BET WHAT INVESTORS HAVEN'T YET RECOGNIZED THEY SAY IS THE COMPANIES' GROWING RELIANCE ON LOAN SERVICING A HUMDRUM BUT LUCRATIVE BUSINESS THAT BOILS DOWN TO HANDLING THE MONTHLY PAYMENTSANDPAPERWORK ROUTINE ON MORTGAGES IN RECENT YEARS MANY MORTGAGEBANKING COMPANIES HAVE SPENT CONSIDERABLE SUMS BUILDING LARGE SERVICING PORTFOLIOS TO HELP OFFSET THE UPS AND DOWNS OF INTERESTRATE CYCLES THE RESULT THESE COMPANIES AREN'T SHACKLED TO THE INTERESTRATE CYCLE AS TIGHTLY AS MANY INVESTORS IMAGINE IT'S RIDICULOUS TO TREAT THESE STOCKS THE WAY INVESTORS HAVE BEEN TREATING THEM RECENTLY ARGUES OPPENHEIMER & CO ANALYST STEVEN EISMAN FORGET LOAN ORIGINATION THE REAL PROFITABILITY IN THIS SECTOR IS IN MORTGAGE SERVICING AND THAT'S WHERE THIS INDUSTRY IS MOVING THROUGH CONTRACTS FOR LOAN SERVICING MORTGAGE BANKERS EXTRACT FEES OFTEN 025 TO 05 OF THE LOAN BALANCE ANNUALLY FOR COLLECTING HOMEMORTGAGE PAYMENTS WITHHOLDING TAXES AND INSURANCE AND FUNNELING THE PAYMENTS TO THE RIGHT PLACES BULLISH ANALYSTS SAY THE SERVICING PORTFOLIOS THESE COMPANIES HAVE AMASSED WILL ALLOW THEM TO THRIVE EVEN AS RATES ESCALATE AND REFINANCINGS SLOW IN SUCH AN ENVIRONMENT SAYS PRUDENTIAL SECURITIES SENIOR ANALYST THOMAS O'DONNELL MORTGAGEBANKING STOCKS WITH DECENT SERVICING CONTRACTS WILL FIT NICELY INTO A PORTFOLIO SEEKING HIGH EARNINGS GROWTH WHAT'S SO HELPFUL ABOUT RISING INTEREST RATES THEY HELP STABILIZE SERVICINGPORTFOLIO TURNOVER THE MORTGAGE RUNOFF THAT OFTEN ARISES IN A LOWRATE ENVIRONMENT WHERE ARMIES OF HOMEOWNERS PAY OFF HIGHRATE LOANS EARLY TO REFINANCE AT A LOWER COST SUCH MASSIVE REFINANCINGS CAN DRAIN A SERVICE PORTFOLIO OF ITS MORTGAGES AND EAT UP CASH FLOW AS COMPANIES STRIVE TO REPLACE IN BULK THE RIGHTS TO SERVICE NEW LOANS BUT THERE ARE INDICATIONS THAT HOME REFINANCING IS RECEDING WHICH AUGURS BETTER TIMES FOR SERVICING PORTFOLIOS RESIDENTIAL RESEARCH FIRM TRWREDI OF RIVERSIDE CALIF SAYS THAT TEXAS HOME REFINANCINGS IN THE FIRST QUARTER PLUNGED 40 FROM THE FOURTHQUARTER 1992 PACE CALIFORNIA REFINANCINGS SLUMPED ONETHIRD WHILE NEW LOANS IN FLORIDA SANK 25 I SUSPECT THAT SPEAKS FOR THE WHOLE COUNTRY SAYS TRWREDI MARKET ANALYST NIMA NATTACH THERE MAY HAVE BEEN ANOTHER ROUND OF REFINANCINGS SINCE THE FIRST QUARTER BUT ANALYSTS SAY IT DIDN'T RIVAL LAST YEAR'S SIZE NOT EVERYONE THINKS LOAN SERVICING IS A SILVER BULLET JOE JOLSON MANAGING DIRECTOR AT MONTGOMERY SECURITIES INSISTS THAT SERVICING PORTFOLIOS PROVIDE MEDIOCRE RETURNS PARTICULARLY IF A COMPANY IS SLOW TO SCALE BACK THE OVERHEAD COSTS ASSOCIATED WITH LOAN PRODUCTION DURING THE REFINANCING BOOM SERVICING IS NOT THE PANACEA SOME MAKE IT OUT TO BE HE SAYS THAT SAID MR JOLSON HAS A BUY RATING ON JUST ABOUT EVERY MORTGAGE BANKER IN THE GROUP PARTICULARLY IMPERIAL CREDIT WHICH HE THINKS WILL MORE THAN DOUBLE TO 25 TRADING UNDER THE SYMBOL ICII THE STOCK WAS OFF 1/4 AT 11 1/2 THE MARKET HAS SIMPLY VALUED THESE STOCKS INEFFICIENTLY SOME OF THESE COMPANIES HAVE BEEN AROUND FOR ONLY A YEAR OR SO AND INVESTORS AREN'T EXACTLY SURE HOW THE COMPANIES WILL FARE WHEN RATES GO UP BUT THEIR EARNINGS ARE LESS CYCLICAL THAN THE MARKET REALIZES HE SAYS AND THEY'RE IN SIGNIFICANTLY BETTER SHAPE TO PRODUCE GROWING EARNINGS STREAMS AS RECENTLY AS 1987 MORTGAGE BANKERS AS A GROUP HAD SCANT EXPOSURE TO LOAN SERVICING FOCUSING INSTEAD ON MAKING NEW LOANS BUT WHEN INTEREST RATES CLIMBED IN MARCH OF THAT YEAR LOAN DEMAND WITHERED AND REVENUE SHRIVELED TO PROTECT AGAINST A RECURRENCE MORTGAGE BANKERS HAVE BEEN GROWING THEIR SERVICE PORTFOLIOS IN RECENT YEARS LIKE PRIZEWINNING MELONS IN THE PAST YEAR NORTH AMERICAN HAS FATTENED ITS SERVICING PORTFOLIO TO 127 BILLION A 53 YEARTOYEAR INCREASE MARGARETTEN OF PERTH AMBOY NJ IN WHICH PRIMERICA SOLD THE PUBLIC A STAKE IN 1992 HAS ABOUT TRIPLED ITS SERVICING PORTFOLIO TO 147 BILLION IN A YEAR COUNTRYWIDE RECENTLY BOUGHT FROM A GENERAL MOTORS SUBSIDIARY THE MORTGAGESERVICING RIGHTS TO A 28 BILLION BUNDLE OF SINGLEFAMILY HOMES INCREASING COUNTRYWIDE'S SERVICING PORTFOLIO TO MORE THAN 62 BILLION A 15FOLD RISE FROM 1987 LEVELS LATEST TO GO PUBLIC IN THE GROUP IS RESOURCE MORTGAGE GROUP WHICH OFFERED 6325000 SHARES LAST WEEK ON NASDAQ AT 8 3/4 UNDER THE SYMBOL REMI AND NOW TRADES AT 9 ACCORDING TO LEAD UNDERWRITER MONTGOMERY SECURITIES RESOURCE DOESN'T ORIGINATE LOANS BUT INSTEAD BUYS SERVICING RIGHTS TO LOANS MADE BY SMALL LENDERS SUCH AS BANKS AND THRIFTS BASED IN COLUMBIA SC RESOURCE OPERATES PRIMARILY IN THE SOUTHEAST AND MIDWEST AND WAS STARTED BY THE FOLKS WHO FOUNDED WHAT HAS BECOME FLEET MORTGAGE ALSO BASED IN COLUMBIA LARGELY BECAUSE OF THE STRENGTH OF SERVICING MABON SECURITIES ANALYST GARETH PLANK HAS A BUY RATING ON NORTH AMERICAN MORTGAGE AND ON COUNTRYWIDE THEY'RE ALREADY WINNERS AS LOAN ORIGINATORS AND THEY'RE IN POSITION TO WIN AS LOAN SERVICERS HE SAYS MR PLANK NOTES HOWEVER THAT SOME LOAN SERVICERS ARE MORE CONSERVATIVE THAN OTHERS WHEN IT COMES TO BOOKING THE VALUE OF THEIR PORTFOLIOS AND THEREFORE POSSESS A STRONGER QUALITY OF EARNINGS NORTH AMERICAN HE SAYS IS BY FAR THE MOST CONSERVATIVE THERE IS NO MONKEY BUSINESS WHEN THEY SELL THEIR SERVICING THEY BOOK THE GAIN OR LOSS AND WHEN THEY RETAIN SERVICING THEY RECORD THE FEES THEY RECEIVE ONLY WHEN THEY RECEIVE THEM OTHERS SUCH AS COUNTRYWIDE AND MARGARETTEN TAKE A LESSCONSERVATIVE TACK HE SAYS THOUGH THEY FOLLOW GENERALLY ACCEPTED ACCOUNTING PRINCIPLES THEY MAKE ASSUMPTIONS ABOUT THE LIFE OF THEIR LOANS MR PLANK EXPLAINS AND INCLUDE WITHIN THEIR PRESENTVALUE CALCULATIONS THE FUTURE VALUE OF SERVICING FEES THEY'RE BASICALLY BOOKING VALUE THEY HAVEN'T YET RECEIVED BUT PLAN TO FOR COUNTRYWIDE THE NATION'S LARGEST INDEPENDENT MORTGAGE BANKER SERVICING CONTRIBUTED 53 MILLION OR ABOUT A QUARTER OF PRETAX INCOME IN FISCAL 1993 ENDED FEB 28 VS 31 MILLION A YEAR EARLIER BY GROWING SERVICING NOW WE'RE BASICALLY BUILDING TWO STREAMS OF INCOME THAT PERFORM WELL IN ALL INTERESTRATE ENVIRONMENTS SAYS COUNTRYWIDE'S CHIEF OPERATING OFFICER STANFORD KURLAND MARGARETTEN'S STRATEGY IS TO ENLARGE ITS PORTFOLIO BY RETAINING SERVICING ON A GREATER PROPORTION OF SELFORIGINATED LOANS AND BY ACQUIRING SERVICING RIGHTS IN THE RESALE MARKET LAST SEPTEMBER MARGARETTEN PURCHASED NATIONSBANC MORTGAGE CORP OF VIRGINIA FROM NATIONSBANK CORP FATTENING ITS SERVICING RIGHTS BY 76 BILLION OF MORTGAGE LOANS THE COMPANY IS RETAINING THE SERVICING ON ONETHIRD OF THE LOANS IT ORIGINATES THE STRATEGY ALLOWED MARGARETTEN TO MORE THAN DOUBLE SERVICING REVENUE TO 267 MILLION IN 1992 FROM 116 MILLION A YEAR EARLIER OF ADDITIONAL BENEFIT TO MORTGAGE BANKERS THE REFINANCING SPREE HAS LEFT THEM WITH LOANS THAT ARE YOUNG JUST TWO YEARS IN MANY CASES AND THAT CARRY A WEIGHTED COUPON AVERAGE BETWEEN 78 AND 88 BECAUSE OF THAT SAYS IMPERIAL CREDIT CHAIRMAN WAYNE SNAVELY THERE IS LITTLE INCENTIVE TO REFINANCE WHICH INCREASES THE VALUE OF THE SERVICING PORTFOLIOS AS AN ASSET THAT BODES WELL FOR A COMPANY SUCH AS LOMAS FINANCIAL CORP WHICH FOCUSES ALMOST SOLELY ON LOAN SERVICING IT EXITED FROM BANKRUPTCY COURT 15 MONTHS AGO HAVING CAST OFF A VARIETY OF BUSINESSES INCLUDING ITS LOANORIGINATION DIVISION IT RETAINED ONLY ITS 30 BILLIONANDGROWING SERVICING PORTFOLIO AND A MONEYLOSING MORTGAGE DATAPROCESSING SYSTEM UP UNTIL NOW THE STRATEGY HAS LOOKED A BIT SHAKY THE DALLAS COMPANY DIDN'T ANTICIPATE THE MASSIVE REFINANCINGS OF THE PAST SEVERAL MONTHS AND BY JUNE 1993 THE END OF ITS CURRENT FISCAL YEAR WILL HAVE SPENT ABOUT 67 MILLION OR 35 OF PRETAX CASH FLOW TO REPLACE A HIGHERTHANEXPECTED 98 BILLION RUNOFF WITH 118 BILLION IN NEW SERVICING CONTRACTS BUT RUNOFF SHOULDN'T BE AS BIG A PROBLEM GOING FORWARD ADDITIONALLY SAYS CHAIRMAN AND CHIEF EXECUTIVE JESS HAY LOMAS HAS FOUND NEW WAYS TO PARTICIPATE IN LOAN ORIGINATION WITHOUT INCURRING THE OVERHEAD COSTS OF RUNNING A BRANCH THE COMPANY'S NEW LOMEGA UNIT HAS ESTABLISHED RELATIONSHIPS WITH ROUGHLY 80 MORTGAGE ORIGINATORS NATIONWIDE THAT WILL FUNNEL LOAN SERVICING TO LOMAS WHILE LOMAS'S CENTRAL FUNDING OPERATION WILL SOLICIT LOAN ORIGINATION THROUGH DIRECT MAIL AND TELEMARKETING COMBINED MR HAY EXPECTS BOTH UNITS TO CONTRIBUTE BETWEEN 18 BILLION AND 32 BILLION OF LOANS TO BE SERVICED ANNUALLY TO LOMAS'S SERVICING PORTFOLIO OR SO LONGSUFFERING INVESTORS HOPE I WILL GO TO MY GRAVE KNOWING LOMAS IS WORTH 15 TO 20 A SHARE SAYS MARK FELDMAN WHO THROUGH HIS COLD SPRING MANAGEMENT OWNS MORE THAN 18 OF LOMAS STOCK IN NEW YORK STOCK EXCHANGE TRADING YESTERDAY LOMAS WAS AT 7 1/4 OFF 1/4 ORIGINATION HAS BEEN THE GLITZ AND GLAMOUR OF WALL STREET BUT THAT WILL BE AN ALBATROSS WHEN RATES GO UP THREE POINTS AND REFINANCING DIES SERVICING IS THE COMING TREND STOCKMARKET BOMB THE FIRST FEATURELENGTH ANIMATED MOVIE FROM 1ST NATIONAL FILM SEEMS TO BE A DUD AT THE BOX OFFICE AND WITH INVESTORS THE NASDAQTRADED COMPANY'S HAPPILY EVER AFTER GROSSED 18 MILLION FROM 1018 SCREENS OVER THE FOURDAY MEMORIAL DAY WEEKEND ACCORDING TO ONE HOLLYWOOD BOXOFFICE TALLY THE MOVIE FEATURING SNOW WHITE AND SEVEN DWARFELLES WAS CRITICIZED BY REVIEWERS IN DALLAS LOS ANGELES AND NEW YORK WHERE THE POST CALLED IT A TACKY POLITICALLY CORRECT SEQUEL THE STOCK TUMBLED 1 13/16 YESTERDAY TO 3 3/8 SHARES OF 1ST NATIONAL WHICH DREW SKEPTICAL COMMENTS FROM ANALYSTS FIVE WEEKS AGO IN THIS NEWSPAPER SOARED AS HIGH AS 9 13/16 IN APRIL AS THE COMPANY ADVERTISED THE COMING FILM ON THE CNBC CABLETELEVISION CHANNEL THE AUSTIN TEXAS COMPANY HASN'T POSTED ANY EARNINGS YET AND ITS AUDITOR HAS SAID THE COMPANY IS VERY DEPENDENT UPON THE NATIONAL RELEASE OF THE FILM 9306020005 930602 ALCOA REYNOLDS REACH LABOR PACTS THAT RAISE PAY RESTRICT HEALTH PLANS BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL ALUMINUM CO OF AMERICA AND REYNOLDS METALS CO THE NATION'S TWO BIGGEST ALUMINUM MAKERS REACHED NEW LABOR PACTS THAT PROVIDE HIGHER WAGES WHILE RESTRICTING HEALTHCARE COVERAGE THE THREEYEAR AGREEMENTS REACHED YESTERDAY AT 4 AM IN CLEVELAND COVER SOME 17000 MEMBERS OF THE UNITED STEELWORKERS AND THE ALUMINUM BRICK AND GLASS WORKERS UNION AT 27 SITES THE PACTS ARE SUBJECT TO VOTING BY EACH UNION THE STEELWORKERS ARE SCHEDULED TO VOTE TOMORROW ALUMINUM BRICK AND GLASS WORKERS UNION OFFICIALS WERE UNAVAILABLE TO COMMENT ON WHEN THEIR MEMBERS WILL VOTE CHARLES A BRADFORD AN ANALYST WITH UBS SECURITIES INC SAID BOTH SIDES SEEMED REALISTIC IN REACHING THE AGREEMENTS FOR INSTANCE WORKERS WILL RECEIVE AN EXTRA BUT NOT UNREASONABLE 25 CENTS AN HOUR BEGINNING MONDAY AND ANOTHER 25 CENTS AN HOUR STARTING JUNE 5 1995 MR BRADFORD SAID WORKERS WILL CONTINUE TO RECEIVE COSTOFLIVING INCREASES AS WELL AS PENSION INCREASES OF 2 A MONTH FOR EACH YEAR OF SERVICE THAT IS IN ADDITION TO A 2AMONTH INCREASE WHICH WAS NEGOTIATED AS PART OF LAST YEAR'S CONTRACT EXTENSION R WAYNE ATWELL AN ANALYST WITH MORGAN STANLEY & CO CALLED THE AGREEMENTS VERY FAVORABLE FOR THE COMPANIES UNDER NEW MANAGED HEALTHCARE PROGRAMS COMPANIES CAN CUT COSTS BY NEGOTIATING PACTS TO SEND EMPLOYEES TO CERTAIN PROVIDERS EMPLOYEES PAY MINIMAL FEES WHEN USING SELECTED PROVIDERS AND HIGHER COSTS WHEN OPTING FOR CARE OUTSIDE THE NETWORK WHILE SAVING MONEY ON HEALTH CARE COMPANIES WILL PAY MORE INTO PENSIONS ACCORDING TO THE STEELWORKERS THE COMPANIES WILL GUARANTEE CERTAIN WORKERS WHO RETIRE EARLY 1070 TO 1250 A MONTH UNTIL AGE 62 DEPENDING ON JOB CLASSIFICATIONS UNDER THE PREVIOUS SCALE A RETIRED WORKER AT THE TOP JOB CLASSIFICATION WITH 30 YEARS OF SERVICE RECEIVED 84750 A MONTH A STEELWORKERS' SPOKESMAN SAID MR ATWELL HOWEVER SAID THE COMPANIES MAY ULTIMATELY SAVE WITH THE NEW PENSION PROGRAM BY ENCOURAGING OLDER WORKERS TO TAKE EARLY RETIREMENT THUS CUTTING PAYROLL NUMBERS AND REDUCING CHANCES OF COSTLY LAYOFFS A REYNOLDS SPOKESMAN DECLINED TO COMMENT ON WHETHER THE COMPANIES ARE SEEKING WORKFORCE CUTS THROUGH ATTRITION UNDER THE NEW PACT WORKERS' VARIABLE PAY OR GAIN SHARING WILL BE TIED TO GOALS DETERMINED AT EACH SITE BY LBOR AND MANAGEMENT AND BY CORPORATE FINANCIAL PERFORMANCE ALCOA IS BASED IN PITTSBURGH REYNOLDS IS IN RICHMOND VA 9306020003 930602 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 7/16 HIGH 3 1/8 LOW 3 1/4 NEAR CLOSING BID 3 5/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP308 30 TO 44 DAYS 312 45 TO 89 DAYS 318 90 TO 119 DAYS 321 120 TO 149 DAYS 327 150 TO 229 DAYS 333 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 318 30 DAYS 320 60 DAYS 323 90 DAYS CERTIFICATES OF DEPOSIT 262 ONE MONTH 267 TWO MONTHS 273 THREE MONTHS 287 SIX MONTHS 313 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 315 ONE MONTH 325 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 309 60 DAYS 314 90 DAYS 316 120 DAYS 321 150 DAYS 325 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 1/2 SIX MONTHS 3 7/8 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 734 60 DAYS 742 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 729 60 DAYS 739 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306020002 930602 INTERNATIONAL BRIEF KOBE STEEL LTD JAPANESE FIRM PLANS TO CUT STAFF BY 95 IN NEXT 3 YEARS KOBE STEEL LTD SAID IT WILL CUT 95 OF ITS WORK FORCE IN THE NEXT THREE YEARS BY REDUCING NEW HIRING AT STEEL AND ADMINISTRATIVE DIVISIONS AND WILL REDUCE CAPITAL INVESTMENT TO LESSEN FIXED COSTS BY FISCAL 1995 WHICH ENDS MARCH 1996 THE NUMBER OF EMPLOYEES WILL DECLINE BY 1900 PEOPLE TO 18200 THE JAPANESE STEELMAKER SAID THE STEEL DIVISION PLANS A REDUCTION OF 16 OR 1400 PEOPLE OF WHICH 1300 PEOPLE ARE ENGINEERS THE NUMBER OF ADMINISTRATIVE PERSONNEL WILL DECLINE BY 600 PEOPLE ALSO KOBE STEEL PLANS CAPITAL INVESTMENT IN PLANT AND EQUIPMENT OF 260 BILLION YEN 242 BILLION FOR THE THREE YEARS FROM FISCAL 1993 TO 1995 DOWN 47 FROM THE 490 BILLION YEN SPENT IN THE PRECEDING THREE YEARS THE LATEST COSTREDUCTION MEASURES ARE PART OF THE COMPANY'S REVISED MIDTERM RESTRUCTURING PLAN THE REVISION WAS REQUIRED BECAUSE THE OPERATING ENVIRONMENT HAS BECOME SEVERE SINCE THE COMPANY LAUNCHED AN ORIGINAL PLAN IN DECEMBER 1991 KOBE STEEL SAID 9306020001 930602 BUSINESS BRIEF VINTAGE PETROLEUM INC AGREEMENT IS SIGNED TO BUY PROPERTIES FOR 38 MILLION VINTAGE PETROLEUM INC TULSA OKLA SAID IT SIGNED A LETTER OF INTENT TO PURCHASE CERTAIN DOMESTIC OIL AND GAS PROPERTIES FOR ABOUT 38 MILLION THE COMPANY WOULDN'T SAY WHICH PROPERTIES IT WAS BUYING OR FROM WHOM IT WAS BUYING THEM BUT VINTAGE DID SAY THE PROPERTIES WERE IN THE COMPANY'S FOCUS AREAS OF THE GULF COAST NORTH TEXAS OKLAHOMA AND KANSAS AND THAT NET PRODUCTION FROM THE PROPERTIES AVERAGES ABOUT 3000 BARRELS OF MIDGRAVITY OIL AND 700000 CUBIC FEET OF GAS A DAY THIS ACQUISITION IS CONSISTENT WITH THE COMPANY'S STRATEGY OF ACQUIRING QUALITY PROPERTIES IN OUR FOCUS AREA WITH UPSIDE POTENTIAL SAID CRAIG GEORGE A SENIOR VICE PRESIDENT AT VINTAGE VINTAGE PLANS TO CLOSE THE PURCHASE WITH BANK BORROWINGS THE TRANSACTION IS EXPECTED TO CLOSE ON OR BEFORE JULY 1 9306020126 930517 CAMPAIGN REFORM THAT INCUMBENTS LOVE TO HATE BY ALBERT R HUNT SEN ROBERT DOLE SENATE MINORITY LEADER AND REP BOB TORRICELLI AMBITIOUS YOUNG HOUSE LIBERAL AGREE ABOUT PRESIDENT CLINTON'S PROPOSED OVERHAUL OF CAMPAIGN FINANCING THEY HATE IT THE KANSAS REPUBLICAN OBJECTING TO PARTIAL PUBLIC FINANCING OF CONGRESSIONAL CAMPAIGNS CALLS IT A PARTISAN PACKAGE DESIGNED TO PROTECT THE DEMOCRATIC CONGRESSIONAL MAJORITY THE NEW JERSEY DEMOCRAT WHO DOESN'T LIKE THE CURBS ON POLITICAL ACTION COMMITTEES ZEROS IN ON THE PROPOSAL TO BAN WASHINGTON LOBBYISTS FROM CAMPAIGN FUNDRAISING LIKE MOST SIMPLE IDEAS IT'S STUPID BECAUSE IT CAN BE SO EASILY EVADED IN REALITY THEY'RE ENGAGED IN A COLOSSAL CHARADE SEN DOLE AND REP TORRICELLI REALLY WANT TO PRESERVE MOST OF A CORRUPT SYSTEM THAT HAS GIVEN THEM AND THEIR FELLOW INCUMBENTS HUGE ADVANTAGES THE CLINTON PROPOSAL WHILE FAR FROM PERFECT IS THE MOST SERIOUS EFFORT IN TWO DECADES TO OVERHAUL THIS TRAVESTY IT WOULD PROVIDE SOME PUBLIC MONEY IN EXCHANGE FOR CANDIDATES VOLUNTARILY ABIDING BY A GENEROUS SPENDING CEILING CURB THOUGH NOT ENOUGH THE INFLUENCE OF PACS ELIMINATE MANY OF THE LOOPHOLES THAT LET MILLIONS OF CORPORATE DOLLARS ENTER THE PRESIDENTIAL CONTEST AND PROHIBIT LOBBYISTS FROM RAISING OR GIVING CAMPAIGN CONTRIBUTIONS TODAY COMPETITION IS MINIMAL AND SPECIALINTEREST MONEY REIGNS WITH CAMPAIGN COSTS SOARING MOST MEMBERS OF CONGRESS THINK A LOT MORE ABOUT THEIR OWN CAMPAIGN BUDGET THAN ABOUT THE FEDERAL BUDGET INCUMBENTS ESPECIALLY IN THE HOUSE HAVE AN OBSCENE ADVANTAGE SINCE 1982 SLIGHTLY MORE THAN 2300 HOUSE RACES HAVE INVOLVED INCUMBENTS CHALLENGERS WON ONLY 85 IN THE LAST TWO HOUSE ELECTIONS THERE WERE A TOTAL 100 CONTESTS WITH NO CHALLENGERS AND 353 OTHERS WHERE THE CHALLENGERS SPENT LESS THAN 100000 MAKING THEM ONLY TOKEN CONTESTS CRITICS CLAIM THE PROPOSED CLINTON SPENDING CAP OF ABOUT 690000 FOR HOUSE RACES IS TOO LOW FOR SUCCESSFUL CHALLENGERS BUT OF THE 85 SUCCESSFUL CHALLENGERS OVER THE PAST DECADE ONLY 18 EXCEEDED THAT CEILING ADJUSTED FOR INFLATION THE CLINTON PROPOSAL WOULD ENHANCE THE PROSPECTS OF HUNDREDS OF CHALLENGERS WHILE HURTING AT MOST A HANDFUL THE KEY IS THE PUBLIC FINANCING PROPOSAL TO GIVE AS MUCH AS 200000 TO BUY ADVERTISING TO ANY CANDIDATE WHO CAN RAISE 60000 IN SMALL CONTRIBUTIONS THE AID THIS WOULD GIVE INSURGENTS WAS RECOGNIZED BY THAT ULTIMATE POLITICAL CYNIC BOB DOLE WHO SAID OF HOUSE REPUBLICANS IF THEY WERE SMART THEY WOULD ACCEPT THE PUBLIC FINANCING PROVISION AND SUNSET IT AFTER FOUR YEARS SENATE REPUBLICANS HAVE AN ALTERNATIVE THAT WOULD ELIMINATE PACS WHICH IS PROBABLY UNCONSTITUTIONAL AND PROVIDE A LITTLE MORE HELP FROM POLITICAL PARTIES BUT WITHOUT PUBLIC FUNDS MOST CHALLENGERS STILL WOULD BE STARVED AND THE SYSTEM WOULD REMAIN UNCOMPETITIVE THE CHALLENGER ISSUE IS MOST ACUTE IN THE HOUSE OF LITTLE CONCERN TO THE REPUBLICAN LORDS AND THE CLINTON PLAN WOULD DIRECTLY ASSAIL THE POLITICAL PERQUISITES THE SENATORS RECEIVE BOB DOLE THUNDERS WHY DIP INTO THE TAXPAYERS' POCKETS TO PAY FOR POLITICIANS BUT HE HAD NO PROBLEMS WITH TAKING 8 MILLION OF TAXPAYER FUNDS FOR HIS 1980 AND 1988 PRESIDENTIAL RACES HE DOESN'T NEED IT FOR HIS SENATE ROLE HE ALREADY IS THE DARLING OF MANY WASHINGTON LOBBYISTS AND BIG CAMPAIGN CONTRIBUTORS NO ONE HAS BEEN MORE GENEROUS THAN ARCHERDANIELSMIDLAND THE BIG AGRIBUSINESS FIRM AND ITS CHAIRMAN DWAYNE ANDREAS WHO HAVE FUNNELED HUNDREDS OF THOUSANDS OF DOLLARS TO THE KANSAS REPUBLICAN IN RECENT YEARS MR DOLE HAS CHAMPIONED CONSIDERABLY MORE THAN 200 MILLION A YEAR IN FEDERAL LARGESSE FOR ADM OR MORE THAN THE PUBLIC FINANCING PROVISION WOULD COST IN ONE ELECTION CYCLE THAT DOESN'T EVEN GET INTO THE BILLIONS OF DOLLARS OF CAMPAIGN CONTRIBUTIONINDUCED BREAKS THAT CONGRESS HAS GIVEN DOCTORS TRIAL LAWYERS AND THE GRANDDADDY OF ALL THE SAVINGS AND LOAN INDUSTRY SORRY SEN DOLE IT'S A LOT BETTER TO HAVE POLITICIANS FUNDED BY TAXPAYERS THAN BY GREEDY SPECIAL INTERESTS TO PAY FOR THE 200 MILLION IN PUBLIC CAMPAIGN FINANCING THE CLINTON PLAN WOULD END THE TAX WRITEOFF FOR LOBBYISTS THAT REALLY OFFENDS REP TORRICELLI WHO PRIVATELY RAILS AGAINST CAMPAIGN FINANCING REFORM AFTER HE BECAME A HARDLINER ON CUBA HIS CONTRIBUTIONS FROM CUBANAMERICAN LOBBYISTS INCREASED MORE THAN TENFOLD OVER THE PAST 10 YEARS HE HAS RECEIVED 1172983 FROM PACS ACCORDING TO THE FEDERAL ELECTIONS COMMISSION THIS HAS LET REP TORRICELLI LEAD A CUSHY LIFE ACCORDING TO A HANDBOOK OF CAMPAIGN SPENDING COMPILED BY SARA FRITZ AND DWIGHT MORRIS IN 1990 REP TORRICELLI WHO RAISED 818917 OR 25 TIMES MORE THAN HIS UNKNOWN GOP OPPONENT WAS LEGALLY ABLE TO USE THESE FUNDS TO SPEND 8068 ON MEALS IN SUCH PLACES AS WASHINGTON THAILAND AND ITALY AND TO DISH OUT ABOUT 4000 FOR CAR REPAIRS AT A PORSCHE/AUDI DEALERSHIP NO WONDER MOST INCUMBENTS DON'T WANT TO END THIS SYSTEM FOR ALL ITS FLAWS THE PRESIDENTIAL FINANCING SYSTEM HAS DEMONSTRATED THAT THE INFLUENCE OF MONEY CAN BE REDUCED THE WHITE HOUSE RECENTLY HELD THREE PRIVATE SESSIONS ON MALPRACTICE REFORM THE QUESTION OF THE MASSIVE CONTRIBUTIONS FROM THE TRIAL LAWYERS NEVER WAS MENTIONED MESSRS DOLE AND TORRICELLI WOULDN'T UNDERSTAND THAT EXPERIENCE MR HUNT IS THE JOURNAL'S WASHINGTON BUREAU CHIEF SEE RELATED LETTERS LETTERS TO THE EDITOR A FUSILLADE FROM BOTH SIDES WSJ JUNE 2 1993 9305170098 YY93 MM06 9306020046 930528 THE CLINTON TAX PACKAGE SQUEAKING BY CLINTON ECONOMIC PLAN FACES A SENATE BATTLE AFTER SLIM HOUSE WIN VOTE OF 219TO213 REFLECTS PARTISAN SPLIT SOFTNESS IN DEMOCRATIC SUPPORT BENTSEN TOUGH JOB AHEAD' BY JACKIE CALMES AND DAVID WESSEL STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON COMPROMISED CAJOLED AND TWISTED ARMS AND HIS LASTMINUTE EFFORTS PAID OFF THE HOUSE OF REPRESENTATIVES APPROVED THE BIGGEST TAX INCREASE IN AT LEAST A DECADE IN A CLIFFHANGER THAT HAD THE PRESIDENT'S AIDES FRETTING UNTIL THE LAST MOMENT THE HOUSE VOTED 219213 TO APPROVE A BILL THAT WOULD RAISE TAXES AND TRIM SPENDING BY 337 BILLION OVER THE NEXT FIVE YEARS ALL THE REPUBLICANS AND 38 DEMOCRATS VOTED AGAINST THE BILL IT WAS A SORELY NEEDED VICTORY FOR A PRESIDENT BATTERED BY SETBACKS AND EMBARRASSMENTS FOR THE PAST MONTH BUT THE HOUSE WHERE THE RULES FAVOR THE DEMOCRATIC MAJORITY WAS SUPPOSED TO BE THE EASY PART NOW THE BILL MOVES TO THE SENATE WHERE DISCONTENT AMONG DEMOCRATS MAY FORCE MR CLINTON TO RETREAT FROM CRITICAL PARTS OF HIS ECONOMIC PLAN MR CLINTON WHO PRAISED THE VOTE HAD TO GIVE SOME TO GET HIS PACKAGE THROUGH THE HOUSE HE SURRENDERED AN INVESTMENT TAX BREAK THAT WAS SUPPOSED TO SPUR THE ECONOMY HE SETTLED FOR A SMALLER INCREASE IN CORPORATE TAXES THAN HE HAD PROPOSED HE CARVED EXEMPTIONS FROM THE ENERGY TAX TO BLUNT BUSINESS OPPOSITION AND HE AGREED TO A NEW PROCEDURE FOR HANDLING FEDERAL BENEFIT PROGRAMS IF THEY GROW FASTER THAN ANTICIPATED BUT FOR THE MOST PART HIS PROPOSALS SURVIVED THE ENERGY TAX WOULD RAISE AS MUCH MONEY AS ORIGINALLY CONCEIVED THE TAX INCREASES ON THE RICH ARE INTACT MOST OF MR CLINTON'S MONEYSAVING PROPOSALS REMAIN OR HAVE BEEN REPLACED WITH EQUIVALENT SAVINGS IN SHORT MR CLINTON GOT A BILL CLOSER TO HIS ORIGINAL PROPOSAL THAN RONALD REAGAN DID IN HIS FABLED LEGISLATIVE SUCCESS THE 1981 TAX CUTS BUT NOW MR CLINTON HAS TO COPE WITH THE SENATE WE HAVE A TOUGH JOB AHEAD OF US TREASURY SECRETARY LLOYD BENTSEN A 22YEAR SENATE VETERAN SAID LAST NIGHT WE'LL MAKE FURTHER CHANGES HE SAID PREDICTING THAT THE WHITE HOUSE WILL HAVE TO ACCEPT A SMALLER ENERGY TAX AND DEEPER SPENDING CUTS TO GET THE PACKAGE THROUGH I THINK WE'LL PASS A BILL SAID SEN BILL BRADLEY A NEW JERSEY DEMOCRAT ON THE TAXWRITING SENATE FINANCE COMMITTEE BUT WE'LL HAVE THE PERILS OF PAULINE' FOR A WHILE FIRST THAT SHOULDN'T SURPRISE MR CLINTON SINCE TAKING OFFICE HE HAS TUSSLED WITH ONE SENATOR OR ANOTHER ON A SUCCESSION OF ISSUES HIS FAILED PLAN TO STIMULATE THE ECONOMY WITH INCREASED SPENDING HOMOSEXUALS IN THE MILITARY BOSNIA AND IN EACH CASE THE ANTAGONISTS HAVE INCLUDED MEMBERS OF HIS OWN PARTY THE PRESIDENT IS DISCOVERING THE FUNDAMENTAL DEMOGRAPHICS OF THE US SENATE POPULATION 100 INDEPENDENT OPERATORS DEMOCRATS CONTROL THE CHAMBER BY A 5743 EDGE BUT IT OFTEN SEEMS THAT NO ONE CONTROLS THEM TO THE CONSTERNATION OF THE PRESIDENT AND DEMOCRATIC LEADERS AT LEAST SIX DEMOCRATIC SENATORS ARE FLIRTING WITH OPPOSING THE FIRST DEMOCRATIC PRESIDENT IN 12 YEARS ON WHAT EVERYONE CONSIDERS A PIVOTAL VOTE AS ONE DEMOCRATIC SENATOR PUT IT THIS WEEK PRESIDENTS NEED SENATORS MORE THAN SENATORS NEED PRESIDENTS ALTHOUGH THE CHANGES IN MR CLINTON'S PLAN WERE BLESSED BY THE ADMINISTRATION THE ENERGY TAX IS STILL IN TROUBLE PARTICULARLY WITH SWING VOTES FROM OIL AND FARMSTATE SENATORS TALK OF GUTTING THE ENERGY TAX OR REPLACING IT WITH A GASOLINE TAX PERSISTS THE PRESIDENT'S PLAN TO INCREASE THE TAXATION OF SOCIAL SECURITY BENEFITS PAID TO THE WELLOFF ELDERLY REMAINS A PROBLEM AND THE NEW CHAIRMAN OF THE SENATE FINANCE COMMITTEE SEN DANIEL PATRICK MOYNIHAN OF NEW YORK VOWS TO SOMEHOW RESTRAIN SPENDING ON MEDICARE THE HEALTHCARE PROGRAM FOR THE AGED MORE THAN THE HOUSE DID MAKING UPPERINCOME ELDERLY PAY MORE FOR MEDICARE IS AN OPTION THOUGH THAT COULD STIR UP THE ELDERLY LOBBY EVEN MORE THAN IT ALREADY IS WHAT'S AT STAKE I MORE THAN THE PRESIDENT'S DEFICITREDUCTION INITIATIVE IMPORTANT THOUGH THAT IS IF MR CLINTON FALTERS IN THE EFFORT TO PUSH THE BILL THROUGH THE SENATE HE MAY BE LEFT ALL BUT POWERLESS TO WIN THE REMAINDER OF HIS AGENDA ON HEALTH CARE TRADE AND HIGHER GOVERNMENT INVESTMENTS THE FINANCE COMMITTEE IS THE NEXT STOP FOR THE PRESIDENT THE PANEL IS MADE UP OF ONEFIFTH OF THE SENATE AND HANDLES TAXES TRADE AND HEALTH CARE THE COMMITTEE RANGES FROM CLINTON LOYALISTS DAVID PRYOR A FORMER ARKANSAS GOVERNOR AND MAJORITY LEADER GEORGE MITCHELL OF MAINE TO MR CLINTON'S CURRENT NEMESES OKLAHOMA DEMOCRAT DAVID BOREN AND REPUBLICAN LEADER BOB DOLE OF KANSAS GIVEN THEIR SLENDER 119 MAJORITY DEMOCRATS CAN'T AFFORD TO LOSE A SINGLE VOTE ON THE FINANCE PANEL SEN BOREN'S OPPOSITION HAS PARTY LEADERS WEIGHING EXTRAORDINARY PARLIAMENTARY MANEUVERS TO BYPASS THE PANEL AND HIM TO GET THE TAX BILL TO THE SENATE FLOOR BY LATE NEXT MONTH IT'S THE PRESIDENCY AT STAKE SAYS AN ANGRY SEN JAY ROCKEFELLER A WEST VIRGINIA DEMOCRAT WHO ALSO SITS ON THE PANEL THE THOUGHT THAT THIS BILL CAN BE STOPPED BY ONE INDIVIDUAL ON THE FINANCE COMMITTEE WITH SO MUCH AT STAKE IS REPREHENSIBLE TO ME IN MORAL TERMS IN POLITICAL TERMS ALMOST IN TERMS OF PATRIOTISM THE BILL THAT PASSED THE HOUSE RAISES TAXES BY ABOUT 250 BILLION AND RAISES FEES AND SQUEEZES BENEFIT PROGRAMS BY ABOUT 87 BILLION OVER FIVE YEARS BY EXTENDING SPENDING CEILINGS FIRST IMPOSED IN 1990 TRIMMING FEDERAL WORKERS' PAY AND COUNTING EXPECTED SAVINGS ON INTEREST COSTS THE HOUSE BUDGET COMMITTEE SAYS THE MEASURE WOULD REDUCE THE NEXT FIVE YEARS' WORTH OF DEFICITS BY NEARLY 500 BILLION FROM WHAT THEY WOULD OTHERWISE BE THE TAX INCREASE IS BIGGER THAN THE ONE PASSED IN 1990 BUT MEASURED AGAINST THE SIZE OF THE ECONOMY IT IS SMALLER THAN THE 1982 TAX INCREASE FOR A FAMILY WITH ANNUAL INCOME OF 50000 THE CONGRESSIONAL BUDGET OFFICE SAYS THE BILL WOULD MEAN A 266 TAX INCREASE FAMILIES WITH ANNUAL INCOME BETWEEN 100000 AND 200000 WOULD PAY 769 MORE THE VERY RICH WOULD BE HIT WITH MUCH LARGER TAX INCREASES THE FRACTURED FINANCE COMMITTEE WILL TEST SEN MOYNIHAN WHO INHERITED THE CHAIRMANSHIP WHEN MR BENTSEN WAS NAMED TREASURY SECRETARY KNOWN AS THE SENATE'S RESIDENT INTELLECTUAL THE NEW YORKER FACES SKEPTICISM FROM SOME COLLEAGUES AND ADMINISTRATION OFFICIALS WHO DOUBT THAT HE HAS WHAT IT TAKES TO BROKER TOUGH DEALS ASKED ON A RECENT TELEVISION TALK SHOW IF HE WOULD FIGHT UNTIL DEATH TO SAVE THE PRESIDENT'S ENERGY TAX MR MOYNIHAN REPLIED WITH CHARACTERISTIC FLOURISH FIGHT UNTIL DEATH OVER TAXES OH WOMEN COUNTRY GOD THINGS LIKE THAT TAXES NO LIKE THE FULL SENATE THE FINANCE COMMITTEE IS HEAVY WITH LAWMAKERS FROM THE FARM AND OIL STATES BY CONTRAST THE HOUSE IS URBANORIENTED WITH SEATS APPORTIONED BY POPULATION THE CHANGES THAT THE SENATE IS LIKELY TO MAKE TO THE HOUSEPASSED ENERGY TAX REFLECT THAT FOR INSTANCE THE SENATE IS CERTAIN TO REINSTATE A WHITE HOUSEBACKED EXEMPTION FOR ETHANOL AND METHANOL WHICH ARE MADE FROM CORN THE HOUSE DROPPED THE EXEMPTION TO TWEAK THE UPPER CHAMBER ALL BUT THREE OF THE 11 DEMOCRATS ON SEN MOYNIHAN'S COMMITTEE ARE ALMOST CERTAIN TO SUPPORT MR CLINTON THE THREE QUESTION MARKS ARE SEN JOHN BREAUX AN INDEPENDENTMINDED MODERATE FROM LOUISIANA WHO HAS BEEN CLOSE TO MR CLINTON SEN KENT CONRAD A STUBBORN POPULIST FROM NORTH DAKOTA AND SEN BOREN WHO HAS DRAWN ATTENTION AND THE IRE OF THE WHITE HOUSE FOR HIS PLAN TO JUNK THE ENERGY TAX AND REPLACE IT WITH CUTS IN SOCIAL SECURITY AND MEDICARE SOME DEMOCRATS CRITICIZE SEN MITCHELL FOR CONTRIBUTING TO THE UNPREDICTABILITY OF THE COMMITTEE BY APPOINTING SENS BREAUX AND CONRAD BOTH OF WHOM ARE UNEASY ABOUT THE ENERGY TAX AFTER SEN CONRAD HAD PUT ASIDE RETIREMENT PLANS AND AGREED TO PARTY LEADERS' PLEAS TO RUN FOR A SUDDENLY VACANT SENATE SEAT SEN MITCHELL SAW TO IT THAT HE GOT THE SPOT ON THE FINANCE PANEL SEAT VACATED BY MR BENTSEN THE NORTH DAKOTA SENATOR HAD PREVIOUSLY BEEN A MAVERICK ON BOTH THE BUDGET AND APPROPRIATIONS COMMITTEES A DEFICIT HAWK BUT A FIRM BACKER OF FARM SUBSIDIES SO HIS SELECTION PUZZLED SOME DEMOCRATS SEN MITCHELL PUT SEN BREAUX ON THE COMMITTEE IN 1991 THE LOUISIANA LAWMAKER IS TORN BY HIS VARIOUS ROLES AS AN ENERGYSTATE SENATOR AS SEN MITCHELL'S CHIEF DEPUTY WHIP AND AS CHAIRMAN OF THE DEMOCRATIC LEADERSHIP COUNCIL A GROUP OF PARTY MODERATES THAT MR CLINTON ONCE HEADED AT HOME SEN BREAUX HAS HAD TO EXPLAIN WHY HE DOESN'T SUPPORT SEN BOREN'S PLAN WHEN THE OTHER LOUISIANA SENATOR BENNETT JOHNSTON DOES I'VE GOT A LOT OF HATS AND THEY SOMETIMES POINT IN DIFFERENT DIRECTIONS HE SAYS EARLY THIS WEEK SEN BREAUX FRIGHTENED THE WHITE HOUSE WHEN HE SAID HE WOULD OFFER A COMPROMISE BETWEEN MR CLINTON'S PLAN AND THE POLITICALLY UNSALABLE BOREN PLAN SEN BREAUX WAS PRESSURED BY MR BENTSEN AMONG OTHERS TO WITHHOLD THE PLAN TO AVOID FURTHER UNDERMINING THE CLINTON PLAN SO FAR HE HAS DONE SO IT IS UP TO SEN MITCHELL TO CARRY MR CLINTON'S PROGRAM WHILE PROTECTING THE INTERESTS OF HIS DEMOCRATIC SENATORS AN UNUSUALLY LARGE NUMBER OF DEMOCRATIC SEATS 22 ARE UP FOR GRABS NEXT YEAR COMPARED WITH JUST 12 REPUBLICANHELD SEATS MR BENTSEN HAS AS MUCH AT RISK AS SENS MITCHELL AND MOYNIHAN ALTHOUGH THE PRESIDENT SAID THE TREASURY SECRETARY WOULD BE THE CHIEF ECONOMIC SPOKESMAN FOR THE ADMINISTRATION MR BENTSEN HADN'T DONE MUCH TO STEER THE PLAN THROUGH CONGRESS UNTIL RECENTLY HE PLAYED NO VISIBLE ROLE IN THE WHITE HOUSE'S ATTEMPT TO GET THE ILLFATED STIMULUS SPENDING BILL THROUGH THE SENATE AND WAS CUT OUT OF NEGOTIATIONS ON THE TAX BILL WHEN HOUSE WAYS AND MEANS CHAIRMAN DAN ROSTENKOWSKI WENT DIRECTLY TO THE PRESIDENT STILL IF THE CLINTON TAX PLAN FLOPS IN THE SENATE MR BENTSEN WON'T BE ABLE TO DODGE RESPONSIBILITY MR BENTSEN PERSUADED THE PRESIDENT TO PROCEED WITH THE ENERGY TAX BY ASSURING HIM THAT IT WOULD BE SUPPORTED POLITICALLY NOW HE HAS TO PROVE HIMSELF RIGHT HE HAS BEEN MEETING WITH CONGRESSMEN FROM TEXAS AND WITH SENATE DEMOCRATS ALL WEEK HE ALSO HAS SHORTENED A PLANNED TRIP TO EUROPE AND RUSSIA SO THAT HE WILL BE RESTED AND READY WHEN THE SENATE RETURNS FROM ITS WEEKLONG RECESS AFTER MEMORIAL DAY DESPITE THE HANDWRINGING DEMOCRATS SAY THEY ARE CONFIDENT SENS BREAUX AND CONRAD WILL COME AROUND AND BACK A MODIFIED VERSION OF THE ENERGY TAX WHICH CURRENTLY ACCOUNTS FOR 70 BILLION OR MORE THAN A QUARTER OF THE FIVEYEAR TAX INCREASE THE WHITE HOUSE HAS MADE IT A CHOICE BETWEEN THE ENERGY TAX AND THE PRESIDENT THEY'RE GAMBLING THAT SINCE IT IS HIGH STAKES THE DEMOCRATS WON'T LET THE PRESIDENT LOSE THE HAND SAYS BRYCE HARLOW JR WHO WORKED AS A LOBBYIST FOR THE BUSH ADMINISTRATION SOME FINANCE COMMITTEE DEMOCRATS SAY MR CLINTON'S ORIGINAL PLAN TO RAISE THE CORPORATE TAX RATE TO 36 INSTEAD OF THE 35 IN THE HOUSE BILL MAY BE BACK ON THE TABLE IN THE SENATE SEN MOYNIHAN MAY NEED THE EXTRA 15 BILLION TO OFFSET CHANGES TO THE ENERGY TAX AND OTHER THINGS BUT WHILE SEN MOYNIHAN MR BENTSEN AND OTHERS CONTINUE TO TALK TO SEN BOREN THE OKLAHOMA DEMOCRAT MAY HAVE HARDENED HIS OPPOSITION AFTER A WEEK OF NATIONAL PRESS ATTENTION SOME DEMOCRATS CONSIDER HIM TO BE BEYOND WINNING OVER WHATEVER HAPPENS HE HAS FURTHER SOLIDIFIED HIS STANDING BACK HOME BUT SERIOUSLY DAMAGED IT IN THE CAPITAL FROM THE WHITE HOUSE TO CAPITOL HILL DEMOCRATS BELIEVE SEN BOREN BROKE A COMMITMENT TO THE PRESIDENT A COMMITMENT THEY HEARD HIM MAKE DURING A MEETING AT THE WHITE HOUSE I SAT IN THE SAME CABINET MEETING AT THE WHITE HOUSE WHEN SEN BOREN SAID TO THE PRESIDENT YOU WILL NOT LOSE THIS PACKAGE ON ACCOUNT OF MY VOTE' SEN ROCKEFELLER RECALLS MR BOREN DOESN'T DENY MAKING THE PLEDGE BUT HE INSISTS NO ONE SHOULD HAVE INTERPRETED THAT AS A BLANK CHECK WHILE THE DEMOCRATS SCRAMBLE SENATE REPUBLICANS SEEM TO BE MAINTAINING A SOLID BLOC OF OPPOSITION FOR WHATEVER ELSE IT MAY BE THE CLINTON ECONOMIC PLAN ISN'T A BIPARTISAN UNDERTAKING FEW REPUBLICANS HAVE VOTED FOR ANY FACET OF THE PLAN THAT LEAVES THE GOP WITH NO STAKE IN THE PLAN'S SUCCESS DOWN THE ROAD INDEED SOME REPUBLICANS MAY CONTINUE SEEKING WAYS TO UNDERMINE IT THAT BOTH WORRIES AND EMBITTERS DEMOCRATS WHO ARE COUNTING ON AN IMPROVED ECONOMY AND A DECLINING DEFICIT TO COMPENSATE FOR THE POLITICAL RISK OF VOTING FOR TAX INCREASES I DON'T THINK THERE'S ANY QUESTION THAT REPUBLICANS ARE WALKING AROUND WITH BIG SMILES ON THEIR FACES BECAUSE THEY HAVE NO RESPONSIBILITY FOR ANYTHING THAT HAPPENS AROUND HERE SAYS KANSAS DEMOCRATIC REP JIM SLATTERY WHAT TROUBLES SOME DEMOCRATS IS THAT MR CLINTON HAS SHOWN NO SKILL AT REACHING OUT TO REPUBLICANS OR EVEN MUCH INCLINATION TO TRY AND THAT COULD BE FATAL WHEN CONGRESS TURNS TO HEALTH CARE A PROGRAM THAT PROBABLY CAN'T BE PASSED WITHOUT SOME REPUBLICAN BACKING THE NEED TO ATTRACT REPUBLICAN SUPPORT WILL BECOME EVEN MORE CRUCIAL DOWN THE ROAD BECAUSE SOME DEMOCRATS WHO STUCK WITH THE PRESIDENT ON THE DIFFICULT VOTES ON HIS ECONOMIC PLAN NOW MAY FALL AWAY ON OTHER ISSUES JUST TO PROVE THEIR INDEPENDENCE WHAT HE HAS DONE IS ASK ALL THESE HOUSE MEMBERS TO FALL ON THE GRENADE SO HE DOESN'T HAVE TO SAYS KENNETH DUBERSTEIN A WHITE HOUSE CHIEF OF STAFF UNDER PRESIDENT REAGAN ONCE A MEMBER CASTS A VERY TOUGH VOTE WITH NO SUPPORT BACK HOME HE LOOKS AROUND FOR OTHER OPPORTUNITIES TO DEMONSTRATE HIS INDEPENDENCE FROM THE PRESIDENT 9306020145 930422 HERO OR SCOUNDREL SAM HOUSTON'S KIN FIGHT A NEW BATTLE HIS DESCENDANTS ARE LOCKED IN NASTY FEUD OVER STATUE TO A MAN SOME CALL INEPT BY ROBERT JOHNSON AND ANN DE ROUFFIGNAC STAFF REPORTERS OF THE WALL STREET JOURNAL HOUSTON AT THE 1000ACRE BATTLEFIELD SITE WHERE SAM HOUSTON'S RAGTAG ARMY WON TEXAS' INDEPENDENCE FROM MEXICO THERE IS NO STATUE OF THE HERO I THINK THE GENERAL DESERVES IT SAYS SAM HOUSTON IV A 61YEAROLD STEEL SALESMAN AFTER ALL TEXANS ARE TAUGHT FROM GRADE SCHOOL THAT MR HOUSTON IS THE LEADING WARRIOR IN LONE STAR STATE HISTORY HE DEFEATED THE NAPOLEON OF THE WEST ANTONIO LOPEZ DE SANTA ANNA PRESIDENT OF MEXICO AND THE TOP GENERAL IN HIS COUNTRY'S ARMY AT THE BATTLE OF SAN JACINTO MR HOUSTON WAS THE FIRST PRESIDENT OF THE NEW TEXAS NATION AND AFTER STATEHOOD HE SERVED AS A US SENATOR AND GOVERNOR THE FOURTHLARGEST US CITY IS NAMED FOR HIM AS ARE AIRPORTS HIGHWAYS AND UNIVERSITIES HE IS EVERYWHERE EXCEPT AT THE SITE OF HIS GREAT VICTORY THIS WEEK ON THE ANNIVERSARY OF THE SAN JACINTO BATTLE A GRAND STATUE OF SAM HOUSTON CHARGING ON A HORSE WAS SUPPOSED TO BE UNVEILED AT THE BATTLEFIELD BUT A FESTERING BEHINDTHESCENES FEUD BETWEEN MR HOUSTON'S DEFENDERS AND DETRACTORS HAS STALLED THE STATUE POSSIBLY FOREVER THOSE WHO CHAMPION HIS CAUSE INCLUDING DESCENDANTS LIKE GREATGREATGRANDDAUGHTER NANCY BURCH RAISED 250000 FOR THE STATUE AND COMMISSIONED A MODEL TO BE BUILT THE OTHER SIDE INCLUDES DESCENDANTS OF OTHER TEXAS HEROES WHO WERE RUDELY TREATED BY MR HOUSTON AND WHO NOW HAPPEN TO BE MEMBERS OF A PLANNING COMMITTEE FOR THE BATTLEFIELD PARK TO THEM A GRANITE ICON ISN'T FITTING FOR A HERO WHO HAD FEET OF CLAY AND THEY SO FAR HAVE REFUSED TO APPROVE IT THESE OPPOSING CAMPS OF DESCENDANTS HAVE IN FACT CLASHED OVER MR HOUSTON FOR YEARS THE TWO GROUPS BARELY SPEAK TO EACH OTHER AND CELEBRATED THE SESQUICENTENNIAL OF THE BATTLE SEPARATELY IN 1986 SAYS MR HOUSTON IV THIS IS LIKE THE HATFIELDS AND MCCOYS THE ORIGINAL HEROES OF THE BATTLE WOULD PROBABLY SEE US AS A BUNCH OF SPOILED BRATS INCLUDING ME THE WHOLE THING IS JUST A MESS THE FEUD IS COMING TO A HEAD AT THE SAME TIME HISTORIANS ARE REVISING THEIR VIEWS OF MR HOUSTON 200 YEARS AFTER HIS BIRTH RESEARCHERS NOW ACCUSE HIM OF MILITARY INEPTITUDE BIGAMY AND OPIUM SMOKING HIS LOVE OF LIQUOR PROMPTED THE CHEROKEES TO NICKNAME HIM BIG DRUNK WHEN HE LIVED AMONG THEM IN TENNESSEE ADMITS EVEN THE DIRECTOR OF THE SAM HOUSTON REGIONAL LIBRARY AND RESEARCH CENTER ROBERT SCHAADT LOVE HIM OR HATE HIM SAM HOUSTON WAS UNDENIABLY MEMORABLE A POWERFULLYBUILT MAN HE INDULGED HIS VANITY BY POSING FOR SCORES OF PORTRAITS WEARING EVERYTHING FROM A TOGA TO A TURBAN AND HE DIDN'T FOUND THE CITY OF HOUSTON AT ALL HE CAME TO THIS FRONTIER OUTPOST MOSTLY TO PARTY SAY ADMIRING HISTORIANS ONE NEW BIOGRAPHY TELLS OF A TIME HE GOT SO DRUNK BEFORE RETIRING THAT HE ORDERED SERVANTS TO CHOP DOWN A BEDPOST IT WAS RUINING HIS VIEW ALEXIS DE TOCQUEVILLE THE FRENCH SOCIAL PHILOSOPHER MET MR HOUSTON AND FOUND HIM ONE OF THE UNPLEASANT CONSEQUENCES OF POPULAR SOVEREIGNTY MARSHALL DE BRUHL AUTHOR OF A NEW REVISIONIST BUT BALANCED BIOGRAPHY CALLED SWORD OF SAN JACINTO SAYS HERE HE WAS WITH A FOURTHGRADE EDUCATION OFTEN IN DEBT AND OUT OF A JOB AND LIVING AS A DERELICT YET HE BECAME THE MAN OF THE HOUR HE DELIVERED TEXAS MANY OF THE FACTS DEBUNKING MR HOUSTON HAVE BEEN LYING AROUND IN TEXAS ARCHIVES FOR YEARS BUT FEW PEOPLE PAID ATTENTION UNTIL THE RECENT BICENTENNIAL OF HIS BIRTH SPARKED FOUR NEW BOOKS SOME QUESTION MR HOUSTON'S PART IN SANTA ANNA'S DEFEAT CRITICS SAY HE FACED UP TO THE MEXICAN GENERAL ONLY BY ACCIDENT HAVING FLED ACROSS HALF OF TEXAS TO AVOID HIM IN A SENSE MR HOUSTON IS REAPING THE CONSEQUENCES OF THE HUMILIATION HE INFLICTED ON SUBORDINATES YEARS AGO TAKE HIS SNIDE ATTACK ON ONE CONTEMPORARY LEADING PIONEER STEPHEN F AUSTIN WHOM HE DERIDED AS A PHYSICAL PIPSQUEAK HAVING THE DISPOSITION OF A VIPER WITHOUT ITS FANGS WELL A DISTANT RELATIVE OF THAT PIPSQUEAK PAUL GERVAIS BELL NOW SITS ON THE PARK COMMITTEE MR BELL INSISTS THE DELAY OVER THE STATUE ISN'T PERSONAL HE SAYS THE COMMITTEE CAN'T POSSIBLY ALLOW A STATUE ON THE BATTLEFIELD'S SPACIOUS GROUNDS UNTIL A MASTER PLAN FOR THE ENTIRE PARK IS DEVELOPED HE CAN'T SAY HOW LONG THAT WILL TAKE BUT MR BELL SAYS HIS GROUP HASN'T BEEN ABLE TO AGREE ON THAT ISSUE IN THREE YEARS THEN THERE IS WT KENDALL GREATGRANDSON OF TEXAS ARMY COL SIDNEY SHERMAN ON THE DAY BEFORE THE BIG BATTLE GEN HOUSTON BRUSQUELY FIRED COL SHERMAN FROM HIS JOB AS HEAD OF THE CAVALRY AND REBUKED HIM PUBLICLY THE COLONEL'S CRIME COINING THE BATTLE CRY REMEMBER THE ALAMO AND LEADING A SKIRMISH AGAINST SANTA ANNA'S TROOPS WHEN MR HOUSTON WAS STILL ORDERING RETREAT MR KENDALL A RETIRED NATURALGAS INDUSTRY EXECUTIVE AND STALWART OF THE PARK COMMITTEE OBJECTS TO A STATUE OF MR HOUSTON WITHOUT ACCOMPANYING FIGURES OF THE BATTLE'S REGIMENTAL LEADERS INCLUDING HIS OWN ANCESTOR ALSO MR KENDALL SAYS A MODEL OF THE STATUE REMINDS HIM OF A COWBOY RACING INTO A SALOON ON SATURDAY NIGHT IT ISN'T DIGNIFIED BUT THEN NEITHER WAS MR HOUSTON WHEN HE WANDERED INTO TEXAS IN 1832 HE WAS A 43YEAROLD HASBEEN LOOKING FOR A FRESH START PREVIOUSLY BOOSTED BY HIS STANDING AS A WOUNDED HERO OF THE WAR OF 1812 INTO A TENNESSEE CONGRESSIONAL SEAT AND THAT STATE'S GOVERNORSHIP BY THE AGE OF 34 MR HOUSTON FELL FROM FAVOR AFTER THE SCANDALOUS BREAKUP OF HIS 12WEEKOLD MARRIAGE TO ELIZA ALLEN HE QUIT AS GOVERNOR AND WENT TO LIVE WITH THE CHEROKEES LATER ACCORDING TO NUMEROUS HISTORICAL ACCOUNTS HE REMARRIED WITHOUT DIVORCING HIS FIRST WIFE GOT FINED FOR BEATING UP A CONGRESSMAN AND WAS ACCUSED OF FRAUD OVER CONTRACTS TO SUPPLY FOOD TO DISPLACED INDIAN TRIBES HE WAS EXONERATED OF THE FRAUD CHARGE BY 1835 MR HOUSTON HAD JOINED THE ANGLOTEXAN LAND SPECULATORS WHO WERE GOBBLING UP RANGE LAND IN UNSETTLED AREAS WITHIN MEXICO ALTHOUGH THE MEXICAN GOVERNMENT GAVE FREE 4000ACRE SPREADS TO EACH TEXAS SETTLER MR HOUSTON AND HIS ASSOCIATES WANTED CONTROL OF THE WHOLE TERRITORY TO GET IT THEY DECLARED INDEPENDENCE FROM MEXICO IN 1836 GEN SANTA ANNA MARCHED NORTH TO QUELL THE REBELLION FAR FROM THE EUROPEANSTYLE FIGHTING FORCE DEPICTED IN AMERICAN FILMS SANTA ANNA'S 6000 TROOPS WERE LARGELY UNARMED PEASANTS ROUNDED UP BY FORCE AND ORDERED TO TRUDGE ABOUT A THOUSAND MILES TO THE ALAMO THEY WON THERE MAINLY DUE TO OVERWHELMING NUMBERS MR HOUSTON FLED SO FAR THE PURSUING MEXICANS THOUGHT HE WOULD NEVER FIGHT WHEN SANTA ANNA'S TIRED CONSCRIPTS CAUGHT UP WITH MR HOUSTON THEY WERE SO OVERCONFIDENT THAT MANY WERE LITERALLY NAPPING WHEN MR HOUSTON'S FOLLOWERS FINALLY FORCED A SHOWDOWN THE WHOLE BATTLE AT SAN JACINTO OUTSIDE HOUSTON TOOK 18 MINUTES WITH 600 MEXICANS DEAD BUT ONLY NINE TEXANS YET IN VICTORY MR HOUSTON WHO GOT SHOT IN THE FOOT SEEMED LESS THAN HEROIC HIS CONTEMPORARIES REPORTED AT THE TIME MISTAKING A BAND OF SURRENDERING MEXICANS AS ENEMY REINFORCEMENTS HE EXCLAIMED MY GOD ALL IS LOST NOW EVEN MARK STORM THE SCULPTOR WHO HAS FINISHED A LARGE CLAY MODEL OF THE PROPOSED BATTLEFIELD MONUMENT WONDERS IF THE STATUE WILL EVER BE COMPLETED TO QUIET THE CRITICS HE SUGGESTS ERECTING IT WITHOUT USING MR HOUSTON'S NAME MAYBE WE'LL JUST CALL IT VICTORY FOR TEXAS' HE SAYS IF HE COULD MR HOUSTON WOULD SURELY OBJECT TO HAVING HIS NAME OMITTED BUT THE FLAP WOULDN'T SURPRISE HIM MY LIFE AND HISTORY ARE PUBLIC PROPERTY HE ONCE SAID AND IT IS THE HISTORIAN'S PRIVILEGE TO RECORD THE GOOD AS WELL AS THE EVIL I HAVE DONE SEE RELATED LETTERS LETTERS TO THE EDITOR SMILE WHEN YOU REVILE SAM HOUSTON WSJ JUNE 2 1993 9304220078 YY93 MM06 9306010175 930601 ENTERPRISE FINANCING SMALL BUSINESS VENTURE CAPITAL INVESTMENT SOARS REVERSING 4YEAR SLIDE BY UDAYAN GUPTA STAFF REPORTER OF THE WALL STREET JOURNAL VENTURE CAPITAL FUNDS INVESTED 263 BILLION LAST YEAR FAR MORE THAN THE 136 BILLION IN 1991 ACCORDING TO VENTURE CAPITAL JOURNAL IT WAS THE FIRST INCREASE SINCE 1987 THE NEW YORK PUBLICATION NOTES LAST YEAR'S INITIALPUBLICOFFERING BOOM FED THE ENTHUSIASM FOR INVESTING IN STARTUPS AND EARLYSTAGE COMPANIES SAYS STEPHEN REIDY GENERAL PARTNER OF EUCLID PARTNERS A NEW YORK VENTURE CAPITAL CONCERN EUCLID LAST YEAR INVESTED 6 MILLION IN A NUMBER OF BIOTECHNOLOGY HEALTHCARE AND SOFTWARE DEALS MORE THAN IN ANY YEAR SINCE 1987 MR REIDY ADDS VENTURE CAPITAL INVESTMENT IS LIKELY TO GROW FURTHER IN 1993 MR REIDY AND OTHERS SAY THE FUNDS THEMSELVES ARE FLUSH WITH CASH AND INVESTMENT OPPORTUNITIES ARE PROLIFERATING HE SAYS WITH THE DOWNSIZING OF CORPORATIONS CONTINUING EXECUTIVES ARE WILLING TO TRY ENTREPRENEURIAL ADVENTURES HE ADDS SOFTWARE AND TECHNOLOGYSERVICE BUSINESSES CAPTURED THE WIDEST INVESTOR INTEREST RECEIVING 556 MILLION UP 65 FROM 337 MILLION IN 1991 HOWEVER INVESTMENTS IN MEDICAL AND HEALTHCARE BUSINESSES INCREASED THE MOST NEARLY TRIPLING TO 438 MILLION FROM 152 MILLION THE YEAR BEFORE INVESTMENTS IN BIOTECHNOLOGY COMPANIES GREW TO 259 MILLION FROM 112 MILLION SEED INVESTING WHICH HAD LANGUISHED FOR YEARS ALSO PICKED UP THE PUBLICATION REPORTS VENTURE CAPITAL FUNDS POURED 209 MILLION INTO SUCH STARTUPS NEARLY THREE TIMES THE 76 MILLION IN 1991 FOR THE LAST THREE OR FOUR YEARS VENTURE CAPITALISTS FOCUSED INCREASINGLY ON LATER STAGE AND ADDON INVESTMENTS SAYS DAVID SCHUTT PUBLISHER OF VENTURE CAPITAL JOURNAL NEW YORK BUT NOW WITH PROFITS IN THOSE AREAS DIMINISHING VENTURE CAPITALISTS ARE GOING BACK TO THEIR ROOTS HE SAYS ANTICIPATING A TOUGH MARKET UNDER A CLINTON ADMINISTRATION MANY HEALTHCARE COMPANIES SOUGHT CAPITAL BEFORE THE ELECTION SAYS JEFFREY JAY A PARTNER WITH CANAAN PARTNERS IN ROWAYTON CONN AS THE RECOVERY SPUTTERS INCUBATORS PUSH ADVICE AND SPECIALIZATION INCUBATORS HELP FLEDGLING COMPANIES CUT STARTUP COSTS BY OFFERING SHARED CLERICAL ACCOUNTING AND CONSULTING SERVICES UNDER THE SAME ROOF BUT THEY HAVE USUALLY LET TENANTS FEND FOR THEMSELVES IN FINANCIAL PLANNING NOW ALL THAT MAY BE CHANGING ACCORDING TO DINAH ADKINS EXECUTIVE DIRECTOR OF THE NATIONAL BUSINESS INCUBATION ASSOCIATION THE INDUSTRY TRADE GROUP IN ATHENS OHIO INCUBATORS HAVE BECOME MORE SOPHISTICATED AND AGGRESSIVE IN DEVELOPING SPECIALIZED FINANCING PROGRAMS AND IN FORGING TIES WITH INVESTORS SHE SAYS THE CENTER FOR BUSINESS INNOVATION INC IN KANSAS CITY MO FOR EXAMPLE HAS ESTABLISHED ITS OWN SEEDCAPITAL NETWORK TO INTRODUCE ITS CLIENTS TO INVESTORS ALREADY 10 COMPANIES HAVE RECEIVED EARLYSTAGE FINANCING THE INCUBATOR ALSO HAS BENEFITED BY CONCENTRATING ON HIGHTECHNOLOGY STARTUPS WHERE THE MOST PROFITABLE OPPORTUNITIES AND THE HIGHEST RETURNS ON INVESTMENT ARE SAYS ROBERT SHERWOOD PRESIDENT OF THE INCUBATOR HAVING CLIENTS SHARE COSTLY RESOURCES SUCH AS RESEARCH TESTING AND MANUFACTURING MEANS WE CAN START COMPANIES FOR LESS HE SAYS OTHER INCUBATORS ARE FOLLOWING A SIMILAR STRATEGY NOTES PETE COLLINS DIRECTOR OF ENTREPRENEURIAL ADVISORY SERVICES AT COOPERS & LYBRAND IN NEW YORK GENESIS TECHNOLOGY INCUBATOR IN FAYETTEVILLE ARK HAS ESTABLISHED FACILITIES WITHIN A UNIVERSITY RESEARCH CENTER AS A RESULT GENESIS'S TENANTS HAVE ACCESS TO THE UNIVERSITY'S SPECIALIZED RESEARCH LABORATORIES COMPUTERS AND LIBRARIES A SMALL COMPANY USER WOULD FIND IT HARD TO ASSEMBLE THESE SERVICES IN A COSTEFFECTIVE WAY MR WILSON SAYS AS PART OF AN EFFORT TO HELP INCUBATOR TENANTS FINANCIALLY COOPERS AND THE INCUBATOR TRADE GROUP ARE OFFERING AN ONLINE COMPUTER NETWORK THAT LINKS INCUBATOR COMPANIES TO INDIVIDUAL INVESTORS THERE IS ALSO A PUSH FOR LEGISLATION TO GIVE MICROLENDER STATUS TO 15 INCUBATORS WHILE THAT WON'T NECESSARILY PROVIDE INSTANT CAPITAL IT WOULD CREATE BETTER ACCESS FOR TENANTS SAYS MR WILSON WHEN THIS BIG BANK CREATES A SMALLBUSINESS UNIT IT MEANS SMALL SHAWMUT NATIONAL CORP WHICH HAS OFFICES IN BOSTON AND HARTFORD JOINS A GROWING LIST OF BANKS WITH SPECIALIZED UNITS TO SERVE SMALL BUSINESSES BUT WHILE MANY PUT SMALL BUSINESSES IN THE SAME CATEGORY AS MUCH BIGGER MIDDLEMARKET COMPANIES SHAWMUT IS FOCUSING ON COMPANIES WITH REVENUE OF LESS THAN 25 MILLION WHEN YOU LUMP SMALL BUSINESSES WITH BIGGER ONES LENDERS TEND TO FAVOR THE LARGER COMPANIES SAYS JEANETTE CODY A SENIOR VICE PRESIDENT AT SHAWMUT FORMING A GROUP THAT TARGETS ONLY SMALLER COMPANIES FOCUSES US BETTER ON THAT GROUP AND DOESN'T DISADVANTAGE THE LENDER SHE ADDS SHAWMUT SAYS IT SERVES ABOUT 30000 SMALL BUSINESSES IN THIS CATEGORY WITH MORE THAN 400 MILLION IN LOANS THE NEW UNIT WILL CONSIST OF 40 SPECIALLY TRAINED BANKERS WHO ALSO WILL BE RESPONSIBLE FOR EDUCATING SMALL BUSINESSES THROUGH SEMINARS WORKSHOPS AND ONEONONE COUNSELING PREVIOUSLY EACH SHAWMUT BRANCH WAS RESPONSIBLE FOR ITS OWN SMALLBUSINESS LENDING AND SET ITS OWN CRITERIA BUT THERE WAS NO CONSISTENCY OF UNDERWRITING AND THE COST OF DELIVERY WAS PROHIBITIVE NOTES MS CODY MOREOVER FAILURE RATES PROVED TO BE HIGHER THAN IN THE MIDDLE MARKET NOW ALL LOAN PAPERS ARE STANDARDIZED AND ARE PROCESSED ONLY AT THE BANK'S TWO SMALLBUSINESS CENTERS IN FRAMINGHAM MASS AND HARTFORD CONN A REVIEW OF ENTREPRENEURIAL ACTIVITY SHOWS SOME WESTERN STATES FARE WELL WASHINGTON AND WYOMING LED THE COUNTRY IN NEW BUSINESS FORMATION PER 1000 WORKERS ACCORDING TO THE 1993 DEVELOPMENT REPORT CARD PUBLISHED BY THE CORPORATION FOR ENTERPRISE DEVELOPMENT A WASHINGTON DC RESEARCH GROUP STATES IN THE NORTHWEST HAVE INVESTED HEAVILY IN RESOURCES FOR DEVELOPMENT SAYS DAPHNE CLONES AN ANALYST AT THE RESEARCH GROUP THEY ALSO PROVIDE INCREASED FINANCIAL INCENTIVES FOR SMALL COMPANIES TO RELOCATE AN ADDED INCENTIVE NEITHER WASHINGTON NOR WYOMING HAS A PERSONAL INCOME TAX OR CORPORATE TAX THE REPORT SAYS 9306010174 930601 IN NEXT WEEK'S EPISODE GARFIELD IS HIRED TO BOOST CLINTON'S RATINGS BY ELIZABETH JENSEN STAFF REPORTER OF THE WALL STREET JOURNAL CARTOON CAT GARFIELD IS NOT ONLY LAZY AND A GLUTTON IT SEEMS HE HAS ALSO BEEN TRYING TO CHEAT ON HIS NIELSEN RATINGS DURING THE PAST THREE YEARS CBS HAS REPEATED SEVEN TIMES AN EPISODE OF THE SATURDAY MORNING ANIMATED PROGRAM GARFIELD AND FRIENDS IN WHICH THE CAT OPENS THE SHOW SAYING HI EVERYONE AND A SPECIAL WELCOME TO NIELSEN FAMILIES THE SEVERALSECOND GREETING SEEMS INNOCUOUS ENOUGH PARTICULARLY TO NIELSENNAIVE KIDDIES WHO PROBABLY DON'T UNDERSTAND THE REFERENCE TO THE RATINGS SERVICE NIELSEN MEDIA RESEARCH INNOCUOUS OR NOT HOWEVER IT'S STRICTLY FORBIDDEN AS FAR AS NIELSEN IS CONCERNED BECAUSE OF THE POTENTIAL IT HAS TO DISTORT THE TELEVISION RATINGS IN THEORY THE GIMMICK MAKES IT MORE LIKELY THAT VIEWERS WILL REMEMBER TO PUNCH IN WITH THE NIELSEN PEOPLEMETER OR TO RECORD THEIR VIEWING OF THE CARTOON IN NIELSEN'S PAPER DIARIES CBS SAYS IT DIDN'T KNOW ABOUT THE GREETING THE FELONIOUS FELINE GOT AWAY WITH THE TRICK UNTIL SATURDAY MAY 22 WHEN A SHARPEYED VIEWER FROM RIVAL NBC PRESUMABLY AN ADULT NOTICED THE MESSAGE AND IMMEDIATELY PROTESTED TO NIELSEN WHICH THEN TOLD CBS TO DESIST A SPOKESMAN FOR NIELSEN SAID THERE IS NO WAY TO GAUGE WHETHER THE GIMMICK AFFECTED THE RATINGS OF THE 9 AM PROGRAM WHICH IS TOPRATED AMONG THE TWOTO11YEAROLD SET THE SHOW GOES INTO ITS SIXTH SEASON IN THE FALL THE RATINGS COMPANY WON'T TAKE ANY ACTION AGAINST CBS OTHER THAN SENDING A LETTER TO ALL OF ITS CLIENTS NOTIFYING THEM OF THE SITUATION BUT A SPOKESMAN SAYS MAYBE WE OUGHT TO STRING THEM UP BY THEIR PAWS LEE MENDELSON GARFIELD EXECUTIVE PRODUCER CALLS THE GREETING AN INNOCENT JOKE AND SAYS IT NEVER WOULD HAVE BEEN INCLUDED HAD THE PRODUCERS UNITED MEDIA/MENDELSON PRODUCTIONS AND FILM ROMAN & CLAWS INC KNOWN IT WAS A PROBLEM MR MENDELSON SAYS HE'S MYSTIFIED BY THE BROUHAHA OF ALL THE PROBLEMS IN THE WORLD I WOULDN'T PUT THIS AT THE TOP OF THE LIST HE SAYS 9306010173 930601 HEARD ON THE STREET AMAX'S GOLD UNIT HOPES CYPRUS MINERALS DEAL WILL UNEARTH SOME INVESTOR INTEREST IN ITS STOCK BY MARJ CHARLIER STAFF REPORTER OF THE WALL STREET JOURNAL WHEN NEWS BROKE LAST WEEK THAT CYPRUS MINERALS WAS PLANNING TO ACQUIRE MUCH OF AMAX FORMING A MINING GIANT NO ONE WAS MORE EXCITED THAN THE MANAGEMENT OF AMAX GOLD AS A 68OWNED UNIT OF AMAX WHICH IS PRIMARILY A COAL AND ALUMINUM COMPANY AMAX GOLD GETS SCANT ATTENTION FROM THE STREET AND GOT BYPASSED IN THE RECENT GOLD RALLY BUT NOW WITH 28 OF AMAX GOLD ABOUT TO BE SPUN OFF TO THE PUBLIC RAISING THE PUBLIC'S STAKE TO 60 WHILE CYPRUSAMAX RETAINS 40 IT'S REALLY EXCITING SAYS TIMOTHY HADDON AMAX GOLD CHIEF EXECUTIVE OFFICER WITH MORE SHAREHOLDERS THERE'S MORE INTEREST AND THAT'S VERY POSITIVE AND SOME ANALYSTS APPEAR READY TO DISTANCE THEMSELVES FROM THE NEGATIVE ATTITUDE THEY'VE HAD ABOUT AMAX GOLD'S STOCK AFTER AN ANALYSTS MEETING IN NEW YORK LAST WEEK AT LEAST ONE INFLUENTIAL GOLD ANALYST RAISED HIS RATING ALBEIT ONLY TO NEUTRAL FROM UNATTRACTIVE JOHN TUMAZOS OF DONALDSON LUFKIN & JENRETTE CITED RISING GOLD PRICES AND CYPRUS'S PROMISE TO DELVE INTO AMAX GOLD'S AFFAIRS CHANCES OF AMAX GOLD FURTHER UNDERPERFORMING THE MARKET ARE SMALL HE SAYS WHILE MAJOR GOLD STOCK PRICES HAVE SURGED 60 SINCE YEAR END AMAX GOLD IS ABOUT UNCHANGED AT 8 1/2 OFF 1/8 FRIDAY RECENT PROBLEMS HAVE BEEN THREEFOLD AN OVERHANG OF STOCK DECLINING OUTPUT AND TROUBLES AT HAYDEN HILL AMAX GOLD'S NEW GOLD MINE IN 1992 AMAX GOLD ISSUED 132 MILLION SHARES TO PURCHASE THE FOUR MILLIONOUNCE FORT KNOX GOLD PROJECT IN ALASKA AFTER MONTHS IN LIMBO A 26 MILLIONSHARE BLOCK FOR SALE BY A FOREIGN INVESTOR LAST WEEK WAS PLACED WITH A CANADIAN INSTITUTION ANNUAL OUTPUT OF HIGHGRADE ORE FROM THE COMPANY'S MAJOR MINE SLEEPER IN NEVADA SLIPPED TO 253603 OUNCES IN 1992 FROM 354859 IN 1990 THEY'VE DONE A MAGNIFICENT JOB STAYING IN THE BLACK UNTIL THE FIRST QUARTER UNDER THESE CIRCUMSTANCES SAYS KENNETH FRIEDMAN MONEY MANAGER AND MINING ANALYST AT NONLINEAR RESOURCE CORP IN BOULDER COLO BUT HAYDEN HILL IN EASTERN CALIFORNIA HAS PRODUCED LOWERGRADE ORE THAN THE COMPANY PROJECTED AS OPERATING COSTS SOARED IN THE FIRST QUARTER WHILE THE COMPANY GOT 391 AN OUNCE FOR ITS GOLD CASH PRODUCTION COSTS AT HAYDEN HILL REACHED 653 AN OUNCE THE US AVERAGE COST IS ABOUT 240 LATE LAST WEEK THE COMPANY CLOSED THE MILL TEMPORARILY WHILE STUDYING ALTERNATIVES HAYDEN HILL HAS DAMAGED AMAX'S CREDIBILITY SAYS LEANNE BAKER AT SALOMON BROTHERS YET ANALYSTS GENERALLY SUPPORT AMAX GOLD'S MANAGEMENT MS BAKER CALLS AMAX GOLD'S MARK LETTES MARKETING VICE PRESIDENT THE BEST HEDGER IN THE BUSINESS MR FRIEDMAN LIKES THE FACT THAT SEVERAL GOLD MINES COMING ON LINE IN THE NEXT FEW YEARS SHOULD BOOST COMPANY OUTPUT TO ABOUT 800000 OUNCES A YEAR BY 1996 FROM 240000 OUNCES THIS YEAR YET ANALYSTS GENERALLY SUPPORT AMAX GOLD'S MANAGEMENT MS BAKER CALLS AMAX GOLD'S MARK LETTES MARKETING VICE PRESIDENT THE BEST HEDGER IN THE BUSINESS THE COMPANY GOT HIGHER PRICES THAN THE FIRSTQUARTER SPOT PRICE OF 335 MR FRIEDMAN LIKES THE FACT THAT SEVERAL GOLD MINES COMING ON LINE IN THE NEXT FEW YEARS SHOULD BOOST COMPANY OUTPUT TO ABOUT 800000 OUNCES A YEAR BY 1996 FROM 240000 OUNCES THIS YEAR CYPRUS CHAIRMAN MILTON WARD A HIGHLY REGARDED MINING VETERAN LAST WEEK SAID HE WANTED TO BUY ALL OF AMAX GOLD BUT COULDN'T AFFORD TO SUGGESTING ANY PROBLEMS ARE FIXABLE AND FREDERICK PARK HIRED AS EXPLORATION CHIEF AT CYPRUS LAST YEAR IS RESPECTED FOR HIS EXPLORATION SAVVY AND MIGHT HELP AMAX GOLD AVOID ANOTHER HAYDEN HILL MR TUMAZOS ISN'T READY TO RECOMMEND AMAX GOLD FOR PURCHASE THOUGH GOLD STOCKS ARE OFTEN RATED ON THE BASIS OF STOCKMARKET VALUE OR CAPITALIZATION PER OUNCE OF RESERVES NEWMONT GOLD HAS A CURRENT MARKET CAP PER OUNCE OF ABOUT 230 AMAX GOLD AT 75 MIGHT SEEM UNDERVALUED BUT MR TUMAZOS HAS FAITH IN ONLY 26 MILLION OF THE 86 MILLION OUNCES AMAX GOLD LISTS AS RESERVES SUGGESTING A 252 MARKET CAP PER OUNCE WHY THE DISCREPANCY THE MAIN REASON IS THAT HE ISN'T YET CONVINCED THE FORT KNOX SITE IS ECONOMICAL ALLSTATE'S OFFERING MAY BE RUSHED TO MARKET AS SOON AS TODAY AND LOOKS AS IF IT WILL BE AMONG THE MOST SUCCESSFUL IN HISTORY SEARS ROEBUCK WHICH OWNS 100 OF THE BIG PROPERTYCASUALTY INSURER ORIGINALLY PLANNED TO SELL AT LEAST 785 MILLION ALLSTATE SHARES AT 26 BUT MONEY MANAGERS SAY DEMAND IS SO KEEN THAT SEARS MAY SELL ABOUT 90 MILLION SHARES AT A RUMORED 27 WITH DEMAND LEFT OVER SEARS WILL RETAIN 80 OF ALLSTATE MANY CALL ALLSTATE SHARES A BARGAIN AT 27 ANALYSTS EXPECT PERSHARE PROFIT OF ABOUT 240 THIS YEAR AND 270 NEXT YEAR BROKERAGE HOUSES HAVE BEEN SQUABBLING MORE THAN USUAL TO GET STOCK TO SELL TO CLIENTS GOLDMAN SACHS LEAD UNDERWRITER WILL SELL MANY OF THE SHARES ITSELF DISAPPOINTING OTHERS IN THE UNDERWRITING GROUP SUCH AS MORGAN STANLEY AND PAINEWEBBER INDUSTRY PEOPLE SAY THE INITIAL PUBLIC OFFERING NOW AN ESTIMATED 24 BILLION IS THE BIGGEST EVER BY A US COMPANY INSURANCE EXECUTIVES AND TRADERS SAY SEARS WILL BE BRINGING IT TO MARKET EARLIER THAN PLANNED ONE POSSIBLE REASON IS TO BLUNT THE EFFECT OF RECENT CONTROVERSY OVER ALLSTATE'S HURRICANEINSPIRED PLAN TO DO LESS BUSINESS IN FLORIDA ANOTHER IS THE CONGENIAL STOCKMARKET CLIMATE 9306010172 930601 REVIEW & OUTLOOK EDITORIAL ASIDES BOND MARKET CORRECTION OUR FRIDAY EDITORIAL ON THE FINANCIAL NEWS MADE THE POINT THAT A FED TIGHTENING BOOSTING SHORTTERM INTEREST RATES CAN ACTUALLY LOWER LONGTERM INTEREST RATES IN THE PROCESS WE MISTAKENLY SAID THE BOND MARKET ROSE THE PREVIOUS DAY WE HAD IN MIND WEDNESDAY'S MARKET WHEN BONDS DID RISE AS THE FED FUNDS RATE HIT 35 ON THURSDAY BONDS FELL AS FED FUNDS WENT BACK CLOSE TO 30 9306010171 930601 FOCUS ON ASIA BY KAREN ELLIOTT HOUSE WHILE WASHINGTON HAS ITS EYES ON TAX VOTES TRAVEL SCANDALS AND PRESIDENTIAL HAIRCUTS AMERICA'S ELDER STATESMAN RICHARD NIXON HAS HIS FOCUS FIXED ON THE LARGE ISSUES OF COMING YEARS WHICH HE VIEWS AS US RELATIONS WITH RUSSIA JAPAN AND CHINA THE SHAPE OF THE POSTCOLD WAR WORLD HE FIRMLY BELIEVES WILL BE DETERMINED BY RELATIONSHIPS IN ASIA BETWEEN AMERICA AND THESE THREE BIG POWERS WHILE MR NIXON SHIES FROM GRADING BILL CLINTON'S EARLY PRESIDENCY HE CLEARLY RESPECTS THE PRESIDENT'S HANDLING OF RELATIONS WITH RUSSIA BUT IMPLICITLY DISAPPROVES OF HIS HANDLING OF JAPAN AND CHINA TO DATE PRESIDENT NIXON ARTICULATED HIS ASIACENTRIST THESIS IN A 90MINUTE INTERVIEW AT HIS NEW JERSEY OFFICE THE 80YEAROLD EXPRESIDENT WHO ONLY RECENTLY RETURNED FROM HIS LATEST VISIT TO ASIA APPEARS PHYSICALLY ROBUST AS WELL AS INTELLECTUALLY ENGAGED ON A WIDE VARIETY OF INTERNATIONAL ISSUES FOR EXAMPLE HE NOTED WITH PRIDE THAT ON THIS MOST RECENT TRIP HE SAW FOUR JAPANESE PRIME MINISTERS THREE KOREAN PRESIDENTS AND ALL RANKING MEMBERS OF THE CHINESE HIERARCHY EXCEPT THE BY NOW TOTALLY RECLUSIVE DENG XIAOPING THE FORMER PRESIDENT'S EMPHASIS ON ASIA AND THE NECESSITY OF A CONTINUED US LEADERSHIP ROLE THERE AMPLIFIES A THEME THAT IS ALSO BEING SOUNDED WITH GROWING URGENCY BY ASIAN LEADERS FROM SINGAPORE'S GOH CHOK TONG TO JAPAN'S KIICHI MIYAZAWA SO FAR THE CLINTON ADMINISTRATION HAS BEEN TONE DEAF ON THE TOPIC THE PRESIDENT'S DECISION TO RENEW MOSTFAVOREDNATION TRADE STATUS WITH CHINA BUT FOR THE FIRST TIME WITH EXPLICIT HUMANRIGHTS CONDITIONS ATTACHED IS LIKELY TO FURTHER STRAIN USCHINA RELATIONS AT THE SAME TIME THE ADMINISTRATION'S INCONSISTENT BUT LARGELY AGGRESSIVE RHETORIC ON TRADE ISSUES WITH JAPAN HAS ALREADY SERVED TO SOUR RELATIONS WITH THE WORLD'S SECONDLARGEST ECONOMY MORE GENERALLY THE US ADMINISTRATION'S INDECISIVENESS ON BOSNIA AND ITS TEPID RESPONSE TO NORTH KOREA'S NUCLEAR PROGRAM HAVE CAUSED EARLY CONCERN ALL ACROSS ASIA ABOUT THE RELIABILITY OF AMERICA'S SECURITY UMBRELLA IN MR NIXON'S VIEW US LEADERSHIP IS THE KEY TO STABILITY AND PROSPERITY IN ASIA WHILE CONTINUED STABILITY AND ECONOMIC GROWTH THERE ARE CENTRAL TO AMERICA'S FUTURE PROSPERITY ALL THE FOREIGN POLICY ATTENTION IS FOCUSED ON BOSNIA BECAUSE IT'S ON TELEVISION HE NOTED BUT ASIA IS THE PLACE NOW WHICH EVEN MORE THAN EUROPE IS POTENTIALLY THE MOST EXPLOSIVE BECAUSE CHANGE IS OCCURRING VERY RAPIDLY POLITICALLY ECONOMICALLY AND MILITARILY WITH CHANGE COMES DANGER AMERICA MR NIXON ARGUED MUST MAINTAIN ITS MILITARY PRESENCE IN ASIA TO ENSURE PEACE AND STABILITY YOU CAN ARGUE ABOUT WHETHER AND HOW MUCH WE OUGHT TO REDUCE TROOPS IN EUROPE HE SAID BUT THOSE WHO ARGUE YOU CAN REDUCE FORCES IN ASIA ARE ENTIRELY WRONG THE US HAS TROOPS BASED IN JAPAN AND KOREA MR NIXON NOTED THAT WHILE MOST NATIONS ARE REDUCING MILITARY ARMAMENTS ASIAN NATIONS ESPECIALLY CHINA ARE BUILDING UP RAPIDLY WITHOUT THE US ASIA'S FUTURE RESTS ON A THREELEGGED STOOL WHICH IS VERY UNSTABLE HE SAID ANYONE WHO BELIEVES A CHINA RUSSIA JAPAN BALANCE OF POWER IS STABLE IS CRAZY THE FORMER PRESIDENT WHOSE PERSONAL DIPLOMACY IN ASIA BEGAN 40 YEARS AGO ON A 69DAY TRIP THROUGH THE REGION AS VICE PRESIDENT INSISTED THAT DESPITE AN END TO THE COLD WAR ALL THREE ASIAN POWERS REMAIN STRATEGICALLY IMPORTANT TO AMERICA AND THE US MUST MAINTAIN STABLE THOUGH NOT NECESSARILY FRIENDLY RELATIONS WITH ALL THREE AS USUAL MR NIXON GOES BEYOND CONVENTIONAL WISDOM IN HIS PERSPECTIVE ON EACH OF THESE COUNTRIES DESPITE HIS PERSONAL FASCINATION WITH CHINA MR NIXON CLEARLY VIEWS RUSSIA AS THE NUMBERONE FOREIGN POLICY ISSUE FOR AMERICA THIS IS BECAUSE OF ITS NUCLEAR ARSENAL ITS POLITICAL AND ECONOMIC INSTABILITY AND ITS ROLE AS AN ASIAN POWER MR NIXON SAID IT'S TOUCH AND GO WHETHER RUSSIA WILL STAY THE COURSE OF ECONOMIC AND POLITICAL LIBERALIZATION BUT HE INSISTED OUR BEST BET IS TO SUPPORT BORIS YELTSIN'S GOVERNMENT NOT FOR THE MAN BUT FOR WHAT HE STANDS FOR ECONOMIC REFORM AND DEMOCRACY BUT MAINLY A NONAGGRESSIVE FOREIGN POLICY MR NIXON ADDED THAT IF MR YELTSIN FAILS ALL THE POTENTIAL SUCCESSORS ARE HARDLINERS HE PRAISED PRESIDENT CLINTON'S HANDLING OF RUSSIA WITH ALL THE PROBLEMS CLINTON HAS HAD HIS MAJOR SUCCESS HISTORICALLY WILL BE THAT HE STEPPED UP TO HELP RUSSIA MR NIXON SAID I COULD JOIN THE CHORUS OF THOSE WHO COMPLAIN ABOUT HIS HAIRCUTS AND HIS FIRING THE WHITE HOUSE TRAVEL STAFF BUT ASSUMING A DEMOCRATIC GOVERNMENT SUCCEEDS IN RUSSIA HE WILL DESERVE CREDIT IF MR NIXON FRETS ABOUT RUSSIAN FRAGILITY HE IS ALSO CONCERNED ABOUT THE DEGREE TO WHICH CHINA'S CURRENT ECONOMIC PROGRESS COULD LEAD TO OVERCONFIDENCE AND OVERASSERTIVENESS IN MR NIXON'S VIEW CHINA IS STRATEGICALLY MORE IMPORTANT TODAY THAN TWO DECADES AGO WHEN HE MADE HIS FIRST DRAMATIC PRESIDENTIAL VISIT THERE SOME ARGUE THAT WITH THE SOVIET THREAT GONE WE DON'T NEED THE CHINESE ANYMORE HE SAID BUT THE FLIP SIDE HE POINTED OUT IS THAT SOME IN CHINA LIKEWISE FEEL THAT WITH THE RUSSIAN THREAT GONE THEY NO LONGER NEED THE US SUCH THINKING IS DEAD WRONG HE SAID WHETHER IN BEIJING OR WASHINGTON CHINA HE NOTED IS NOT ONLY A MAJOR STRATEGIC PLAYER IN ASIA BUT ALSO COULD BECOME A MAJOR MILITARY POWER AND ARMS EXPORTER FURTHERMORE IT'S ALREADY THE WORLD'S THIRDLARGEST ECONOMY AND WIELDS VETO POWER IN THE UNITED NATIONS FOR ALL OF THESE REASONS AN AMERICAN POLICY OF DEMANDING HUMANRIGHTS IMPROVEMENTS IN EXCHANGE FOR ALLOWING CHINA TO EXPORT TO THE US WITHOUT ADDED TARIFF PENALTIES IS A GRAVE MISTAKE HE SAID MOSTFAVOREDNATION WITH CONDITIONS IS UNACCEPTABLE HE SAID THE ONLY HOPE FOR SOME PROGRESS ON HUMAN RIGHTS IS TO EXPAND THE ONLY AREA OF FREEDOM IN CHINA THE PRIVATE SECTOR THIS TREMENDOUSLY EXPANDING AREA OF FREEDOM IN CHINA WILL INEVITABLY LEAD TO DEMANDS FOR MORE POLITICAL FREEDOM FOR A PRIVATE SECTOR TO GROW REQUIRES OPENING UP AND OPENING UP IS POISON TO A CLOSED SYSTEM MR NIXON'S HARDHEADED STRATEGIC THINKING IS NOWHERE SHARPER THAN ON US RELATIONS WITH JAPAN THE POINT ISN'T TO BE FRIENDS HE SAID BUT TO MAINTAIN PEACE AND PROSPERITY IN ASIA WHICH IS POSSIBLE ONLY WITH USJAPANESE COOPERATION FOR THIS REASON HE SAID THE US CAN'T AFFORD JAPAN BASHING NOR CAN IT AFFORD TO REMOVE ITS TROOPS AND RISK JAPAN'S ARMING TO DEFEND ITSELF AGAINST A HISTORICALLY AGGRESSIVE RUSSIA AND A MORE ASSERTIVE CHINA JAPAN BASHING IS POPULAR POLITICALLY BUT GEOPOLITICALLY IT'S DISASTROUS MR NIXON SAID THE US AND JAPAN SIMPLY HAVE TO GET ACCUSTOMED TO ECONOMIC COMPETITION AND NOT LET IT DESTROY THEIR COOPERATION IN ASIA WE ARE COMPETITORS AND IT WILL GET ROUGH BUT WE ARE DEMOCRACIES TRADING NATIONS AND PRIVATEENTERPRISE NATIONS WE HAVE TO COOL THE ECONOMIC TENSIONS HE SAID AS FOR THE CLINTON ADMINISTRATION'S EFFORTS TO WORK OUT TRADE ARRANGEMENTS WITH JAPAN TO MANAGE TRADE MR NIXON IS CONFIDENT AMERICA WILL BE THE LOSER MANAGED TRADE WOULD BE A DISASTER YOU CAN BE SURE JAPAN WILL BEAT US AT THAT ASKED ABOUT RECENT VIETNAMESE DOCUMENTS FOUND IN MOSCOW THAT INDICATE VIETNAM HELD MORE AMERICAN PRISONERS OF WAR THAN IT HAS ACKNOWLEDGED MR NIXON DECLINED TO SPECULATE ON THEIR AUTHENTICITY SAYING SIMPLY I NEVER BELIEVED THE NORTH VIETNAMESE DURING THE WAR AND I DON'T BELIEVE THEM NOW BUT HE ADAMANTLY INSISTED THAT NORMALIZATION OF RELATIONS WITH VIETNAM SHOULD AWAIT NOT ONLY AN ACCOUNTING OF MIAS BUT ALSO MARKED IMPROVEMENT IN HUMAN RIGHTS THERE I KNOW I'M A LONE VOICE IN THE WILDERNESS HE SAID BUT THE MIA ISSUE SHOULDN'T BE ALL THAT DETERMINES OUR RELATIONS VIETNAM IS NOT A STRATEGIC INTEREST LIKE CHINA SO IDEOLOGY CAN TAKE PRECEDENCE THERE WE SHOULD INSIST ON HUMANRIGHTS IMPROVEMENTS MR NIXON NOTED THAT VIETNAM WAS SIMPLY THE LATEST OF FOUR WARS AMERICA HAS FOUGHT IN ASIA THIS CENTURY AMERICA UNFORTUNATELY ONLY PAYS ATTENTION TO ASIA IN CRISIS MS HOUSE IS VICE PRESIDENT INTERNATIONAL OF DOW JONES 9306010170 930601 WORLD MARKETS TOKYO SHARES SINK EXTENDING RETREAT HOLIDAY SHUTS MOST EUROPEAN BOURSES A WALL STREET JOURNAL NEWS ROUNDUP TOKYO STOCKS TUMBLED 14 MONDAY IN THIN DEALINGS LOSING GROUND FOR A THIRD CONSECUTIVE SESSION WORLDWIDE STOCK PRICES FELL IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10791 DOWN 047 REFLECTING INCREASES IN THE AMERICAS AND DROPS IN EUROPEAN AND ASIA/PACIFIC MARKETS OFFICE EQUIPMENT STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11521 UP 046 OR 040 WITH AMANO OF JAPAN POSTING A 196 GAIN IN ITS LOCAL CURRENCY STEEL STOCKS TRAILED AT 11721 DOWN 185 OR 155 WITH NISSHIN STEEL OF JAPAN SLIDING 462 IN LOCAL CURRENCY IN TOKYO THE NIKKEI 225STOCK INDEX WHICH SLIPPED 894 POINTS FRIDAY LOST 29134 TO 2055235 ON TUESDAY THE NIKKEI FELL 6264 POINTS TO CLOSE THE MORNING SESSION AT 2048971 MONDAY'S FIRSTSECTION VOLUME WAS ESTIMATED AT 350 MILLION SHARES DOWN SHARPLY FROM 553 MILLION SHARES ON FRIDAY LOSERS TROUNCED GAINERS 728317 PRICES IN TOKYO DROPPED AT THE OPENING AND MOVED LOWER THROUGHOUT THE SESSION POSTING AN INTRADAY HIGH OF 2082954 AND A LOW OF 2051682 THE MARKET HOLIDAY IN THE US EUROPE AND THE MIDDLE EAST LEFT TOKYO WITH A DEARTH OF OVERSEAS INVESTORS AND JAPANESE INVESTORS PARTICIPATED ONLY CAUTIOUSLY BECAUSE OF A CORPORATE BANKRUPTCY FILING AMID ANXIETY ABOUT OTHER FINANCIALLY TROUBLED COMPANIES AND THE YEN'S HOLDING STRONG AGAINST OTHER MAJOR CURRENCIES IN FOREIGN EXCHANGE DEALINGS BUT INCENTIVEBACKED ISSUES SUCH AS THOSE IN THE BIOTECHNOLOGY FIELD ATTRACTED KEEN BUYING INTEREST THE TOKYO STOCK MARKET LARGELY FOLLOWED INDEX FUTURES SOFTNESS IN THE FUTURES MARKET STEMMED LARGELY FROM DISAPPOINTMENT ABOUT THE YEN'S CONTINUED STRENGTHENING TO NEW POSTWORLD WAR II HIGHS ARBITRAGERS WERE LEFT TO SET THE DIRECTION OF THE STOCK MARKET AMONG THE MAIN LOSERS WERE BANKS AS PARTICIPANTS LOWERED THEIR EXPECTATIONS FOR THE BANK OF JAPAN THE CENTRAL BANK TO LOWER ITS OFFICIAL DISCOUNT RATE SOON TO STEM THE YEN'S RISE ON OTHER ASIAN AND PACIFIC MARKETS PRICES OVERALL WERE LOWER TO MIXED SYDNEY SHARES FELL AFTER HOPES FOR AN AUSTRALIAN INTERESTRATE CUT WERE DASHED BY A WIDERTHANEXPECTED CURRENT ACCOUNT DEFICIT FOR APRIL A WEAKER US STOCK MARKET FRIDAY AND A DECLINE IN THE PRICE OF GOLD MONDAY ALSO ERODED SYDNEY SHARE PRICES HONG KONG STOCKS EASED ON PROFITTAKING AFTER A STRONG RUN WITH UTILITIES REGISTERING THE DAY'S BIGGEST LOSSES WHILE INVESTORS AWAITED FRESH POLITICAL INCENTIVES AFTER THE LATEST SINOBRITISH TALKS SATURDAY IN BEIJING ON HONG KONG'S POLITICAL FUTURE DIDN'T SEEM TO PRODUCE ANY PROGRESS FRESH DEVELOPMENTS WEREN'T EXPECTED TO EMERGE FOR A COUPLE OF WEEKS DURING WHICH TIME A HONG KONG MARKET CONSOLIDATION IS ANTICIPATED SEOUL SHARES SURGED SUPPORTED BY PURCHASES BY INSTITUTIONAL INVESTORS AND A REPORT THAT THE SOUTH KOREAN FINANCE MINISTRY WAS URGING INSTITUTIONS TO BUY MORE SHARES THAN THEY SELL BUYING OF FINANCIAL AND LARGECAPITALIZATION ISSUES WAS BRISK SINGAPORE PRICES ENDED MIXED WITH BLUE CHIPS LOWER ON MILD PROFITTAKING TAIPEI STOCKS FELL ON WEAKNESS IN MOST INDUSTRY SECTORS WHILE FINANCE ISSUES WERE THE ONLY GAINERS MANILA SHARES FELL IN MODERATELY HEAVY VOLUME LED BY A CONTINUED SELLOFF IN THE UTILITY SECTOR ON CONCERNS ABOUT THE PHILIPPINES'S POWERSUPPLY SHORTAGE WELLINGTON EQUITIES WEAKENED ACROSS THE BOARD IN LINE WITH OTHER SOFTER MARKETS IN EUROPE MILAN SHARES FELL SLIGHTLY IN HOLIDAYSUBDUED ACTIVITY AS THE MARKET REMAINED CAUTIOUS AHEAD OF ITALIAN CORPORATE EARNINGS REPORTS AND A SPEECH AT AN ANNUAL MEETING OF THE BANK OF ITALY BY THE CENTRAL BANK'S NEW GOVERNOR TELECOMMUNICATIONS AND BANKING SHARES SCORED GAINS MADRID EQUITIES DECLINED ON A CONTINUATION OF PROFITTAKING THAT BEGAN FRIDAY MOST INVESTORS WERE ANTICIPATING LAST NIGHT'S SECOND TELEVISED DEBATE BETWEEN SPAIN'S SOCIALIST PRIME MINISTER FELIPE GONZALEZ AND JOSE MARIA AZNAR LEADER OF THE CENTERRIGHT OPPOSITION PARTIDO POPULAR IN THEIR RACE FOR NEXT SUNDAY'S GENERAL ELECTIONS THE MARKET ALSO FOCUSED ON THIS WEEK'S BANK OF SPAIN REPURCHASE TENDER TO SEE WHETHER THE CENTRAL BANK BELIEVES THE PESETA'S RECENT INSTABILITY WILL PREVENT ANOTHER CUT IN THE BENCHMARK INTEREST RATE 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 9306010169 930601 IRS OVERSIGHT OF MUNI BONDS IS SCRUTINIZED STRICT ENFORCEMENT URGED GAO SEEKS DISCLOSURE OF TRUE RULE BREAKERS BY JOHN CONNOR SPECIAL TO THE WALL STREET JOURNAL WASHINGTON THE GENERAL ACCOUNTING OFFICE CALLED FOR AN OVERHAUL OF THE WAY THE INTERNAL REVENUE SERVICE ENFORCES TAXEXEMPT BOND LAWS URGING THE AGENCY TO BE MORE PROACTIVE IN SEEKING ABUSES AND SUGGESTING THAT BOND MARKET MISCREANTS BE PUBLICLY IDENTIFIED IN AN 88PAGE REPORT THE GAO IDENTIFIED PROBLEMS THAT HAVE HAMPERED IRS ENFORCEMENT EFFORTS IN THE MUNICIPAL BOND AREA OVER THE YEARS AND CALLED ON THE AGENCY TO DEVELOP AN OVERALL STRATEGY FOR DEALING WITH OVERSIGHT ISSUES REGARDING TAXEXEMPT BONDS THE GAO SAID THE OFFICIAL TAX CODE PENALTY FOR NONCOMPLIANCE WITH MUNI RULES TAXING BONDHOLDERS HITS INNOCENT PARTIES AND LETS THOSE RESPONSIBLE ESCAPE PUNISHMENT SUCH AN APPROACH IS CONTRARY TO A COMMONLY ACCEPTED THEORY THAT TO PROVIDE THE BEST DETERRENCE A PENALTY SHOULD BE TARGETED TO THOSE RESPONSIBLE FOR THE NONCOMPLIANCE THE CONGRESSIONAL WATCHDOG AGENCY SAID THERE ALSO ARE PRACTICAL PROBLEMS WITH TAXING BONDHOLDERS THE GAO SAID WITH THE GROWTH OF TAXEXEMPT MUTUAL FUNDS IT SAID HUNDREDS OR THOUSANDS OF INVESTORS MAY OWN SMALL PORTIONS OF A GIVEN TAXEXEMPT BOND ISSUE AND THEIR PROPORTIONAL OWNERSHIP OF A PARTICULAR BOND MAY BE VERY SMALL AND DIFFICULT TO VERIFY THE GAO URGED THE IRS TO USE BOND INFORMATION RETURNS FILED BY STATE AND LOCAL GOVERNMENT BOND ISSUERS TO MONITOR COMPLIANCE AND RECOMMENDED THAT THE AGENCY ENFORCE THE RULES WITH PENALTIES FOR ABUSIVE TAX SHELTERS THE AGENCY ALSO SUGGESTED THAT CONGRESS CONSIDER ADOPTING BETTERTARGETED PENALTIES AND ALLOWING MUNI ENFORCEMENT MATTERS TO BE PUBLICLY DISCLOSED DISCLOSING SUCH INFORMATION IS BARRED BY TAXPAYERPROTECTION LAWS BUT THE GAO SAID PRIVACY ARGUMENTS AREN'T COMPELLING WITH RESPECT TO THE GOVERNMENTAL BODIES THAT ISSUE TAXEXEMPT BONDS AND ARGUED THAT DISCLOSING ENFORCEMENT DATA COULD AID COMPLIANCE BECAUSE THEIR REPUTATIONS AND THUS THEIR SUCCESS IN THE MARKET COULD BE HURT BY DISCLOSURES OF THEIR NONCOMPLIANCE ISSUERS UNDERWRITERS BOND COUNSEL AND OTHERS WOULD HAVE AN ADDITIONAL INCENTIVE TO COMPLY WITH TAXEXEMPT BOND REQUIREMENTS THE AGENCY SAID THE GAO SAID OPTIONS INCLUDE DISCLOSING THE NAMES OF ISSUERS BOND LAWYERS UNDERWRITERS AND OTHERS RESPONSIBLE FOR NONCOMPLIANCE IDENTIFYING SPECIFIC BOND ISSUES SUBJECT TO ENFORCEMENT ACTION OR ISSUING PERIODIC REPORTS SUMMARIZING ENFORCEMENT ACTIONS THE TAXEXEMPT BOND MARKET IS APPROACHING 800 BILLION AND THE IRS'S HISTORICAL RELIANCE ON VOLUNTARY COMPLIANCE HASN'T DETERRED ABUSES THE GAO SAID IT SAID THE MAIN IRS ENFORCEMENT EFFORT NOW UNDER WAY CENTERS ON ABUSIVE BOND ISSUES SOLD BEFORE TAX REFORM DEADLINES IN THE MID1980S AND NOTED THAT THESE DEALS WERE IDENTIFIED BY OTHERS THE IRS RECENTLY BEGAN TO TAX HOLDERS OF CERTAIN OF THESE ALLEGEDLY ABUSIVE BOND ISSUES AND HAS ESTIMATED IN COURT PAPERS THAT IT MAY SEEK TO TAX HOLDERS OF UP TO 12 BILLION OF SUCH BONDS ANOTHER APPROACH TO REMEDYING BAD BOND DEALS SOCALLED CLOSING AGREEMENTS HAS BEEN USED BY THE IRS OVER 70 TIMES IN THE PAST DOZEN YEARS THE GAO SAID UNDER THIS APPROACH THE IRS LETS PROBLEM BONDS REMAIN TAX EXEMPT IF IT IS ABLE TO RECOVER CERTAIN FUNDS FROM THE ISSUER AND OTHERS BUT GAO SAID AMOUNTS OF MONEY RECOVERED TYPICALLY ARE A SMALL PART OF THE ILLGOTTEN EARNINGS ON THE BOND ISSUES IN QUESTION 9306010167 930601 LAW HIRED GUARDS ASSUME MORE POLICE DUTIES AS PRIVATIZATION OF PUBLIC SAFETY SPREADS BY MILO GEYELIN STAFF REPORTER OF THE WALL STREET JOURNAL THE SMALL TOWN OF SUSSEX NJ RECENTLY MADE A DECISION THAT IS THE TALK OF LAW ENFORCEMENT CIRCLES NATIONWIDE IT FIRED ITS POLICE DEPARTMENT STARTING TOMORROW IN PLACE OF POLICE OFFICERS PRIVATE SECURITY GUARDS IN BLUE UNIFORMS WILL BEGIN PATROLLING THE TOWN'S ROWDY COMMERCIAL STRIP ARMED WITH NINEMILLIMETER SEMIAUTOMATIC HANDGUNS AND EQUIPPED WITH RADIOS BATONS AND HANDCUFFS THEY WILL HAVE ALL THE TRAPPINGS OF MODERN POLICE AT A LOWER COST BUT THE MOVE TOWARD COST EFFICIENCY ALSO CARRIES RISKS PRIVATE SECURITY GUARDS MAY LOOK LIKE POLICE OFFICERS BUT THEY DON'T HAVE THE LEGAL AUTHORITY AND FREQUENTLY LACK THE EDUCATION AND TRAINING TO ACT LIKE THEM GENERALLY THEY HAVE NO MORE THAN A CITIZEN'S POWER TO ARREST AND THEY HAVE NO AUTHORITY WHATSOEVER TO QUESTION DETAIN OR SEARCH WITHOUT RISKING A LAWSUIT WHAT SUSSEX IS GETTING IS A UNIFORM SAYS DENNIS O'LEARY A LOCAL PROSECUTOR WHO IS WARY OF THE MOVE THEY'RE GETTING A GUY WHO STANDS ON A CORNER AND WEARS A UNIFORM THEY'RE NOT GETTING A POLICE OFFICER THE TOWN'S ACTION REPRESENTS THE OUTER LIMITS OF A MOVEMENT IN POLICING THE PRIVATIZATION OF PUBLIC SAFETY THAT HAS BEEN GROWING FOR A DECADE INCREASINGLY IN CITY BUSINESS DISTRICTS PRIVATE RESIDENTIAL COMMUNITIES AND PUBLIC HOUSING COMPLEXES HIRED SECURITY IS BEING USED TO AUGMENT AND SOMETIMES REPLACE SERVICES ONCE PROVIDED BY POLICE THE CONSEQUENCES BOTH LEGAL AND SOCIAL ARE FARREACHING FEDERAL AND STATE CONSTITUTIONS LIMIT POLICE POWERS AND AS STATE AGENTS POLICE ARE IMMUNE FROM LAWSUITS AS LONG AS THEY DON'T ABUSE THEIR POWER OR EXCEED THEIR AUTHORITY NOT SO WITH PRIVATE SECURITY GUARDS EVEN THOSE HIRED UNDER CONTRACT BY LOCAL GOVERNMENTS THE LIMITS OF THEIR AUTHORITY ARE GOVERNED NOT BY CONSTITUTIONAL RESTRAINTS BUT BY STATE LIABILITY LAWS PROSCRIBING WRONGFUL CONDUCT THEY CAN BE SUED FOR SIMPLE MISTAKES AND THE COMMUNITIES THAT HIRE THEM CAN BE FORCED TO PAY DAMAGES AS WELL THIS MAY MAKE PRIVATE POLICING AS RISKY FOR COMMUNITIES AS IT IS ENTICING MOREOVER SOME EXPERTS SAY THE TREND TOWARD PRIVATE POLICING COULD MAKE ANYTHING BEYOND MINIMUM PUBLIC SAFETY A FREEMARKET COMMODITY LIKE PRIVATE EDUCATION OR HOSPITAL CARE THAT ONLY THE WELLOFF CAN AFFORD IF EVERYONE WHO CAN BUY THEIR OWN KIND OF SECURITY DOES SO SAYS PHILADELPHIA'S DEPUTY POLICE COMMISSIONER THOMAS SEAMON THEN THERE'S GOING TO BE LESS SYMPATHY TO FUND PUBLIC POLICE A POSSIBLE FUTURE SCENARIO IS THAT PUBLIC POLICE WILL BECOME POLICE OF THE POOR SOME NUMBERS ALREADY POINT IN THAT DIRECTION PRIVATE SECURITY GUARDS 15 MILLION IN 1990 OUTNUMBERED PUBLIC LAW ENFORCEMENT THREE TO ONE ACCORDING TO THE HALLCREST REPORT II A STUDY COMMISSIONED BY THE NATIONAL INSTITUTE OF JUSTICE THE RESEARCH ARM OF THE JUSTICE DEPARTMENT BUSINESSES COMMUNITIES AND INDIVIDUALS SPENT 52 BILLION ON PRIVATE SECURITY IN 1990 ALMOST TWICE THE AMOUNT RAISED BY TAXES FOR PUBLIC LAW ENFORCEMENT THE ESSENTIAL CONCLUSION IS THAT PUBLIC POLICE CAN'T DO IT ALONE ANY MORE SAYS GEORGE SHOLLENBERGER AN EXPERT ON LAW ENFORCEMENT TRENDS AT THE NATIONAL INSTITUTE OF JUSTICE TAKE PHILADELPHIA FACING AN EXODUS OF BUSINESSES BECAUSE OF UNSAFE CONDITIONS DOWNTOWN PROPERTY OWNERS IN PHILADELPHIA'S COMMERCIAL HUB BANDED TOGETHER TO TAX THEMSELVES FOR MORE STREET CLEANING AND PRIVATE SECURITY NOW 34 UNARMED COMMUNITY SERVICE REPRESENTATIVES WEARING DISTINCTIVE TEALCOLORED UNIFORMS PATROL THE CITY'S BUSINESS DISTRICT WORKING OUT OF THE SAME STATION AS POLICE AND LINKED TO THEM BY TWOWAY RADIO THEIR HYBRID FUNCTION IS TO BE PART CONCIERGE FOR THE TOURIST INDUSTRY AND PART EYES AND EARS FOR THE POLICE SINCE THEY WERE DEPLOYED IN 1991 CRIME IN THE AREA HAS DROPPED 17 COMPARED WITH A CITYWIDE DROP OF 12 OTHER CITIES INCLUDING PORTLAND ORE BALTIMORE MD AND TACOMA WASH HAVE SIMILAR PROGRAMS IN CALIFORNIA WHERE TAXLIMITING BALLOT INITIATIVES HAVE RESULTED IN SEVERE RESTRICTIONS ON POLICE A GROUP OF OCEANSIDE BUSINESS AND APARTMENT OWNERS TOOK PHILADELPHIA'S IDEA ONE STEP FURTHER LAST AUGUST THEY JOINED WITH THE CITY AND A PRIVATE SECURITY COMPANY TO START A 24HOUR GUARD SERVICE TO SUPPLEMENT POLICE PROTECTION OF THEIR PROPERTY THE COMPANY THE BELAIR PATROL A SUBSIDIARY OF CHICAGOBASED BORGWARNER CORP MONITORS POLICE SCANNERS AND STAYS IN TOUCH WITH OCEANSIDE POLICE BY CELLULAR PHONE BY STATE LAWONE OF THE MOST SWEEPING IN THE NATIONCITIZENS IN CALIFORNIA CAN MAKE ARRESTS BASED ON THE REASONABLE SUSPICION A FELONY HAS BEEN COMMITTED WHETHER OR NOT THEY SAW IT THAT GIVES CALIFORNIA'S PRIVATE GUARDS BROAD DISCRETION AND UNLIKE THE PHILADELPHIA GUARDS OCEANSIDE'S SECURITY GUARDS ARE ARMED SO FAR SAYS ROBERT SUNDEEN GENERAL MANAGER OF THE BELAIR PATROL HIS GUARDS HAVE BEEN INVOLVED IN 40 ARRESTS THE PATROL WAS CAUGHT IN CROSSFIRE ONCE BUT IT HASN'T NEEDED TO USE ITS WEAPONS AND DOWNTOWN PROPERTY OWNERS ARE SO PLEASED THAT THEY HAVE BEEN PAYING THE ENTIRE 12000 A MONTH COST SINCE NOVEMBER WHEN THE CITY DROPPED ITS FINANCIAL PARTICIPATION BECAUSE OF LIABILITY CONCERNS INDEED THE POTENTIAL LIABILITY IS TREMENDOUS AT THE CHICAGO HOUSING AUTHORITY 400 PRIVATE SECURITY GUARDS UNDER FEDERAL CONTRACT TO POLICE THE PROJECTS HAVE BEEN HELD LIABLE IN MORE THAN A DOZEN SHOOTINGS SAYS KEVIN ROGERS A CHICAGO LAWYER WHO HAS SUED THE AUTHORITY 10 TIMES BECAUSE THE COMPANIES ARE UNDER GOVERNMENT CONTRACT MR ROGERS HAS SUCCESSFULLY CONTENDED THAT THEIR GUARDS WERE ACTING AS STATE AGENTS THAT EXPOSES THEM AND THE AUTHORITY TO STATE AND FEDERAL CIVIL RIGHTS CLAIMS MOREOVER CHICAGO LIKE MOST CITIES AND STATES DOESN'T EXTEND THE STATE'S SOVEREIGN IMMUNITY FROM LAWSUITS TO THE CONTRACTORS IT HIRES ANY GOVERNMENT AGENCY THAT CONTRACTS WITH A PRIVATE SECURITY COMPANY CAN BE VULNERABLE TO CIVIL RIGHTS CLAIMS SAYS ROGER GOLDMAN A UNIVERSITY OF ST LOUIS LAW SCHOOL PROFESSOR SIMILARLY HE ADDS LIABILITY COULD EXTEND TO COMMUNITY GROUPS INVOLVED IN JOINT POLICE AND PRIVATE SECTOR INITIATIVES YET SOME LAW ENFORCEMENT EXPERTS PREDICT THAT SUCH JOINT EFFORTS ARE THE WAY OF THE FUTURE FOR FINANCIALLY PINCHED URBAN POLICE DEPARTMENTS TO LIMIT LAWSUITS SOME PROGRAMS ARE PLACING SECURITY GUARDS IN LIMITED SUPPORT ROLES SUCH AS PATROLLING PARKS TRANSPORTING PRISONERS ESCORTING FUNERALS OR PROVIDING SOFT SECURITY IN COURTHOUSES AND ON THE STREETS POLICE DEPARTMENTS IN 18 STATES ARE MOVING IN THIS DIRECTION THUS FREEING MORE POLICE OFFICERS FOR CRIME FIGHTING ACCORDING TO THE NATIONAL INSTITUTE OF JUSTICE BUT IN SUSSEX NJ THE DECISION TO SUPPLANT PUBLIC POLICE WITH PRIVATE SECURITY RAISES LIABILITY EXPOSURE TO A NEW LEVEL WITH A POPULATION OF JUST OVER 2200 AND OTHER PRESSING NEEDS SUSSEX OFFICIALS REASON THAT PRIVATE SECURITY AT 1550 AN HOUR WILL BE AS EFFECTIVE AS POLICE BUT CHEAPER PRIVATE GUARDS DON'T REQUIRE THE PAY AND BENEFITS OF MUNICIPAL EMPLOYEES AND INSURANCE WITH A 3 MILLION POLICY LIMIT IS THE COMPANY'S RESPONSIBILITY THE GUARDS WILL WORK OUT OF THE OLD POLICE STATION CRUISE THE TOWN IN A PATROL CAR AND RADIO STATE TROOPERS IF THEY RUN INTO TROUBLE IF WE SEE ANY KIND OF CRIME OR WHATEVER WE'RE GOING TO ACT SAYS RAYMOND CAROLONZA CHIEF EXECUTIVE OF EXECUTIVE SECURITY & INVESTIGATIVE SERVICES INC IN TOTOWA NJ WE'RE GOING TO MAKE A CITIZEN'S ARREST LOCAL LAW ENFORCEMENT OFFICIALS ARE KEEPING THEIR FINGERS CROSSED 9306010166 930601 REVIEW & OUTLOOK EDITORIAL MYTH OF THE MODERATES MAYBE THE SENATE AND THE NEW CLINTON ADMINISTRATION WILL FORGE AN ENTIRELY NEW ECONOMIC PACKAGE THEN AGAIN MAYBE NOT IN ANY EVENT THE BILL THE HOUSE PASSED LAST WEEK WILL BE ONEHALF OF AN EVENTUAL HOUSESENATE CONFERENCE COMPROMISE SO TIME OUT TO LOOK AT THE 20 OR SO MODERATE HOUSE DEMOCRATS WHO MADE A LOT OF NOISE AGAINST THE CLINTON BUDGET LED BY TEXAS REP CHARLES STENHOLM THE MODERATES IN THE END SETTLED FOR A MEANINGLESS SPENDINGCUT FIG LEAF AND HELPED GIVE PRESIDENT CLINTON A 219 TO 213 VICTORY THEY BEGAN THEIR MINIREVOLT BY DEMANDING RIGID SPENDING CAPS ON ENTITLEMENTS AND ENDED UP ACCEPTING A TOOTHLESS REQUIREMENT THAT MEMBERS VOTE ON WHETHER TO SPEND MORE MONEY ONCE ENTITLEMENT PROJECTIONS ARE EXCEEDED ALL THIS DOESN'T MEAN THE MODERATES GOT NOTHING SOME WHO RAILED IN PUBLIC AGAINST OVERSPENDING CUT A PRIVATE DEAL THAT WILL EXTEND MULTIBILLIONDOLLAR FARM SUBSIDY PROGRAMS FOR THREE YEARS AFTER THEIR 1995 EXPIRATION REP STENHOLM WHO HEADS THE CONSERVATIVE DEMOCRATIC FORUM HAS MADE A CAREER OUT OF STANDING UP TO HIS PARTY'S LIBERAL LEADERSHIP AND THEN CAVING IN AT THE LAST MINUTE HIS NICKNAME AMONG OTHER MEMBERS IS CAVEMAN CHARLIE WHILE HE POSES AS A PROGROWTH DEMOCRAT CONGRESSIONAL QUARTERLY NOTED THAT IN 1989 HE LED THE LEADERSHIP TASK FORCE AGAINST THE CAPITAL GAINS TAX CUT WHICH NONETHELESS PASSED WITH THE VOTES OF ONE OUT OF FIVE HOUSE DEMOCRATS THE SONG AND DANCE OPPOSITION OF REP STENHOLM AND OTHER MODERATES BRINGS THEM THE BEST OF BOTH WORLDS BACK HOME THEIR APOSTASY GETS GREAT NEWS COVERAGE AND SHIELDS THOSE IN MARGINAL DISTRICTS AGAINST CHALLENGERS IN WASHINGTON THE DEMOCRATIC LEADERSHIP NEVER REALLY PUNISHES THEM BECAUSE IT KNOWS THAT IN A CLOSE VOTE THEY CAN ALMOST ALWAYS BE HOUSE BROKEN LAST WEEK'S BUDGET VOTE WAS A CLASSIC ILLUSTRATION OF HOW THIS POTEMKIN OPPOSITION WORKS AS THE FINAL VOTE ENDED THE LEADERSHIP LET DEMOCRATS IN MARGINAL SEATS OFF THE HOOK SO THEY COULD VOTE AGAINST THE BUDGET IN FACT THE REAL VOTE ON THE BUDGET HAPPENED EARLIER THAT VOTE APPROVED A CLOSED RULE THAT BARRED ALL AMENDMENTS SUCH AS ZEROING OUT THE TAXES ON ENERGY AND SENIOR CITIZENS THE CLOSED RULE GUARANTEED THAT THE FINAL BILL WOULD INCLUDE THOSE TAXES WHILE 38 DEMOCRATS VOTED AGAINST THE CLINTON BUDGET 31 OF THOSE SAME MEMBERS VOTED FOR THE CLOSED RULE MANY OF THOSE SAME MEMBERS WENT HOME FOR MEMORIAL DAY POSTURING AS OPPONENTS OF HIGHER TAXES WHEN IN FACT THEY ARE ACCOMPLICES TO THE ACT WE'VE NO DOUBT THAT MANY MODERATES WOULD GENUINELY LIKE TO LEAD THEIR PARTY IN A SANER DIRECTION BUT THEY FEAR THE CONSEQUENCES LAST WEEK FOR INSTANCE A PETITION WAS CIRCULATED AMONG DEMOCRATIC MEMBERS CALLING FOR A CAUCUS MEETING TO REMOVE ANY CHAIRMEN WHO VOTED AGAINST THE PRESIDENT THAT'S WHY THE CURRENT MODERATE STRATEGY CAN'T REFORM THE HOUSE A FORMER MEMBER OF THE DEMOCRATIC HOUSE LEADERSHIP TOLD US CHANGE IS IMPOSSIBLE SO LONG AS MODERATES WORK WITHIN THE CAUCUS THEY'LL NEVER HAVE ENOUGH TROOPS TO BEAT THE LEFT THE ONLY WAY TRULY MODERATE DEMOCRATS CAN ALTER THE HOUSE'S MINDSET IS TAKING THE RISK OF MAKING COMMON CAUSE WITH REPUBLICANS ONLY WHEN THEY'VE SHOWN THEY CAN BEAT THE LIBERAL LEADERSHIP WILL THEY BE TREATED WITH ANYTHING APPROACHING RESPECT IN THEIR OWN PARTY AND OF COURSE THE SAME PARTISAN CALCULUS APPLIES TO A DEMOCRATIC PRESIDENT WHO WANTS TO AVOID THE FATAL TUG OF THE LEFT AND FORGE A MODERATE COURSE 9306010165 930601 WHO'S NEWS CANADIAN FOCUSES AGAIN ON AMERICA WITH PURCHASE OF TIME WARNER SHARES BY CHRISTOPHER J CHIPELLO STAFF REPORTER OF THE WALL STREET JOURNAL MONTREAL EVER SINCE PAUL DESMARAIS RAISED ABOUT 15 BILLION CANADIAN DOLLARS US119 BILLION IN 1989 BY UNLOADING TWO CORPORATE HOLDINGS AT PEAK PRICES MARKET WATCHERS HERE HAVE BEEN WAITING FOR HIM TO START INVESTING IN NORTH AMERICAN BUSINESSES AGAIN LAST WEEK'S DISCLOSURE THAT MR DESMARAIS'S POWER CORP OF CANADA HAS ACCUMULATED THREE MILLION SHARES IN TIME WARNER INC IS THE LATEST INDICATION THAT THE RETICENT CANADIAN MAGNATE AFTER CONCENTRATING ON EUROPE FOR SEVERAL YEARS IS ONCE AGAIN ON THE PROWL CLOSER TO HOME ESPECIALLY IN THE COMMUNICATIONS BUSINESS THE TIME WARNER DISCLOSURE COMES ON THE HEELS OF POWER CORP'S RECENT C180 MILLION INVESTMENT IN SOUTHAM INC WHICH GAVE POWER A 19 STAKE AND A MAJOR VOICE IN RUNNING THE MAJOR CANADIAN NEWSPAPER CHAIN IN A SEPARATE DEVELOPMENT POWER'S BROADCASTING UNIT AND THE CANADIAN BROADCASTING CORP LAST WEEK ANNOUNCED AN AGREEMENT WITH DIRECTV INC A UNIT OF GM HUGHES ELECTRONICS CORP TO PROVIDE TWO CHANNELS OF NEWS AND ENTERTAINMENT FOR DIRECTV'S PLANNED DIRECT BROADCAST SATELLITE WHETHER TIME WARNER REPRESENTS MORE THAN A PORTFOLIO HOLDING FOR POWER CORP IS ANYONE'S GUESS A SPOKESMAN FOR MR DESMARAIS DECLINED TO COMMENT ON THE INVESTMENT WHICH CAME TO LIGHT WHEN SEAGRAM CO MADE A US SECURITIES FILING ON ITS MUCHLARGER STAKE IN TIME WARNER SEAGRAM SAYS ITS INVESTMENT WASN'T IN ANY WAY COORDINATED WITH THAT OF MR DESMARAIS WHO IS A SEAGRAM DIRECTOR MR DESMARAIS AND A EUROPEAN PARTNER ARE SAID TO HAVE DISCUSSED WITH TIME WARNER A POSSIBLE STRATEGIC INVESTMENT LAST YEAR BUT THE TALKS EVENTUALLY BROKE OFF ALTHOUGH HE OWNS A MONTREAL NEWSPAPER AND CONTROLS A EUROPEAN BROADCASTING COMPANY CIE LUXEMBOURGEOISE DE TELEVISION THE 66YEAROLD MR DESMARAIS SHUNS PUBLICITY SURROUNDED BY REPORTERS AFTER POWER CORP'S ANNUAL MEETING TWO WEEKS AGO HE SAID POWER HAD 10 OR MORE INVESTMENT PROSPECTS IN NORTH AMERICA BUT WOULDN'T IDENTIFY ANY HE ALSO INDICATED THAT GIVEN THE HALTING ECONOMIC RECOVERY HE WOULDN'T GAMBLE RASHLY WITH THE C25 BILLION IN CASH IN POWER CORP AND ITS SUBSIDIARIES ROUGHLY C15 BILLION OF IT IN THE EUROPEAN ARM IT CONTROLS WITH THE FRERE GROUP OF BELGIUM WHILE MR DESMARAIS IS LITTLE KNOWN IN THE US HIS CAREER IS THE STUFF OF CANADIAN BUSINESS LEGEND IN 1951 HE LEFT LAW SCHOOL TO TAKE OVER HIS FAMILY'S STRUGGLING BUS COMPANY IN SUDBURY ONTARIO TURNED THE BUSINESS AROUND AND LATER PARLAYED IT INTO A REGIONAL OPERATION IN QUEBEC IN A 1968 REVERSE TAKEOVER HE SOLD HIS ASSETS TO POWER CORP FOR ENOUGH SHARES TO TAKE CONTROL OF POWER THEN TRIMMED THE DIVERSIFIED HOLDING COMPANY'S MINORITY HOLDINGS AND BUILT CONTROLLING INTERESTS IN SELECTED COMPANIES TODAY MR DESMARAIS OWNS A 30 EQUITY STAKE AND THROUGH MULTIPLE VOTING SHARES A 62 VOTING STAKE IN POWER CORP THE COMPANY'S NORTH AMERICAN UNITS INCLUDE INVESTORS GROUP INC CANADA'S BIGGEST MUTUAL FUNDS CONCERN GREATWEST LIFE CO WITH UNITS IN CANADA AND THE US AND CANADIAN MEDIA INTERESTS AS A FRENCH CANADIAN FROM SMALLTOWN NORTHERN ONTARIO MR DESMARAIS FOR YEARS WAS CONSIDERED SOMETHING OF AN OUTSIDER BOTH IN FRENCHSPEAKING QUEBEC AND AMONG CANADA'S ENGLISHSPEAKING BUSINESS ELITE BUT HE ALSO SERVED AS A BRIDGE BETWEEN THE TWO WORLDS MR DESMARAIS'S POLITICAL NETWORK IS ALSO TESTIMONY TO HIS ABILITY TO PLAY BOTH SIDES OF THE FENCE HE IS FRIENDS WITH PRIME MINISTER BRIAN MULRONEY AND FORMER PRIME MINISTER PIERRE TRUDEAU A LONGTIME MULRONEY NEMESIS MR TRUDEAU SITS ON POWER CORP'S INTERNATIONAL ADVISORY COUNCIL THE COUNCIL WHICH MEETS ANNUALLY TO DISCUSS THE GLOBAL ECONOMY RECENTLY LOST ONE OF ITS SEVERAL FOREIGN LUMINARIES RONG YIREN RESIGNED UPON BECOMING VICE PRESIDENT OF CHINA A COUNTRY MR DESMARAIS SAYS POWER CORP IS LIKELY TO INVEST IN SOON OTHERS SUCH AS PAUL VOLCKER FORMER US FEDERAL RESERVE CHAIRMAN REMAIN SINCE THE WELLTIMED 1989 SALES OF THE CONSOLIDATEDBATHURST INC FOREST PRODUCTS UNIT AND MONTREAL TRUSTCO UNIT MOST OF POWER CORP'S CORPORATE INVESTING HAS BEEN IN EUROPE THERE IN PARTNERSHIP WITH BELGIUM'S FRERE GROUP SON PAUL DESMARAIS JR POWER'S VICE CHAIRMAN HAS BEEN CONSOLIDATING THE EUROPEAN HOLDINGS MUCH AS HIS FATHER STREAMLINED POWER'S HOLDINGS TWO DECADES AGO POWER CORP OFFICIALS QUESTIONED AFTER THE GROUP'S RECENT ANNUAL MEETING SUGGESTED THAT FUTURE ACQUISITIONS WOULD LIKELY BE IN INDUSTRIES FAMILIAR TO THE COMPANY THAT COULD INCLUDE FOREST PRODUCTS AND TRANSPORTATION AS WELL AS FINANCE AND COMMUNICATIONS NOTHING WAS SAID PUBLICLY ABOUT TIME WARNER SEAGRAM'S FILING WITH THE US SECURITIES AND EXCHANGE COMMISSION SHOWS THAT POWER CORP BOUGHT ONE MILLION OF ITS THREE MILLION TIME WARNER SHARES IN LATE APRIL EVEN AS SEAGRAM WAS BUILDING ITS POSITION GIVEN MR DESMARAIS' TIES TO SEAGRAM THE DISCLOSURE RAISED EYEBROWS AMONG SOME WALL STREET OBSERVERS ONE US SECURITIES LAWYER TOLD THE GENERAL DETAILS SAID THE SITUATION DIDN'T APPEAR TO INVOLVE IMPROPER OR ILLEGAL CONDUCT TIME WARNER SHARES CLOSED AT 3625 FRIDAY ON THE NEW YORK STOCK EXCHANGE UNCHANGED FROM THURSDAY'S CLOSE BUT DOWN FROM 38 WEDNESDAY BEFORE THE SEAGRAM ANNOUNCEMENT 9306010164 930601 BETTER WORKERS BETTER WAGES THE REAL ISSUE BY MILTON FRIEDMAN PROPOSED ECONOMIC POLICIES TEND TO BE JUDGED IN TERMS OF JOBS CREATED THAT IS THE WRONG CRITERION THE ECONOMIC PROBLEM IS NOT CREATING JOBS THAT IS EASY HIRE PEOPLE AT MINIMUM WAGES OR LOWER TO DIG HOLES AND FILL THEM TRUE RAISING TAXES TO FINANCE THAT PROJECT WOULD DESTROY JOBS BUT THE JOBS DESTROYED WOULD BE HIGHWAGE JOBS THE JOBS CREATED LOWWAGE JOBS SO FOR EACH JOB DESTROYED MORE THAN ONE JOB WOULD BE CREATED A NET GAIN OF JOBS THE REAL PROBLEM IS TO ESTABLISH AN ECONOMIC ENVIRONMENT IN WHICH THERE IS A DEMAND FOR WORKERS AT WAGES THAT THOSE WORKERS NOT ONLY REGARD AS SATISFACTORY BUT ARE QUALIFIED TO EARN BETTER QUALIFIED WORKERS AND BETTER WAGES NOT SIMPLY MORE JOBS IS THE REAL PROBLEM CONSIDER THE TALK ABOUT THE EFFECT OF REQUIRING SMALL FIRMS TO PROVIDE MEDICAL CARE FOR THEIR EMPLOYEES THE STANDARD ARGUMENT AGAINST DOING SO IS THAT IT WOULD COST JOBS I HAPPEN TO BELIEVE THAT REQUIRING ANY FIRM TO PROVIDE MEDICAL CARE FOR ITS EMPLOYEES IS A BAD IDEA BUT NOT BECAUSE IT WOULD COST JOBS THE EMPLOYER DOES NOT PAY FOR THE EMPLOYEE'S MEDICAL CARE HE MAY SIGN THE CHECK BUT THE EMPLOYEE PAYS FOR THE MEDICAL CARE VIA REDUCED TAKEHOME WAGES IF THE EMPLOYEE IS UNWILLING TO ACCEPT A LOWER TAKEHOME WAGE IN RETURN FOR EMPLOYERPROVIDED MEDICAL CARE OR IF THE GOVERNMENT THROUGH MINIMUM WAGES OR OTHERWISE PREVENTS A REDUCTION IN TAKEHOME PAY THE EMPLOYEES OR SOME OF THEM WILL LOSE THEIR JOBS THE JOBS WILL BE LOST NOT BECAUSE THE EMPLOYER HAS BEEN REQUIRED TO PROVIDE MEDICAL CARE BUT BECAUSE THE COMBINATION OF A LARGER FRACTION OF THE TOTAL WAGE IN THE FORM OF MEDICAL CARE AND A SMALLER FRACTION IN THE FORM OF TAKEHOME PAY IS UNATTRACTIVE TO THE EMPLOYEE OR RULED OUT BY LEGAL TECHNICALITIES REQUIRING THE EMPLOYER TO PROVIDE MEDICAL CARE IS A BAD IDEA BECAUSE IT MAKES A GIVEN REAL WAGE IN TERMS OF COST TO THE EMPLOYER LESS ATTRACTIVE TO THE EMPLOYEE THE EMPLOYEE WOULD BE BETTER OFF IF HE OR SHE HAD THE FREEDOM TO DISTRIBUTE HIS OR HER TOTAL INCOME BETWEEN MEDICAL CARE AND OTHER ITEMS IN ACCORDANCE WITH HIS OR HER OWN WISHES INSTEAD OF ACCORDING TO THE DICTATES OF A NANNY GOVERNMENT OR A PATERNALISTIC EMPLOYER THE ONLY REASON THAT THE PRACTICE OF EMPLOYERPROVIDED MEDICAL CARE FOR EMPLOYEES CONTINUES IS TO TAKE ADVANTAGE OF A TAX PROVISION THAT CLASSIFIES EMPLOYERPROVIDED MEDICAL CARE AS A NONTAXABLE FRINGE BENEFIT AS IS BY NOW WELLKNOWN THAT PROVISION IN TURN IS A BYPRODUCT OF WORLD WAR II WAGE AND PRICE CONTROLS A MARVELOUS EXAMPLE OF THE OFTEN FARREACHING AND UNINTENDED CONSEQUENCES OF HAMHANDED GOVERNMENT INTERVENTION IN THE MARKET THE RIGHT SOLUTION IS TO CHANGE THE TAX LAW SO THAT SUCH FRINGE BENEFITS THOUGH DEDUCTIBLE BY THE EMPLOYER ARE INCLUDED IN THE EMPLOYEE'S TAXABLE INCOME ON THE SAME BASIS AS CASH WAGES THE EMPLOYEE WOULD GAIN NOT LOSE HIS CASH WAGES WOULD RISE SINCE COMPETITION WOULD FORCE THE EMPLOYER TO COMPENSATE THE EMPLOYEE FOR THE LOSS OF MEDICAL BENEFITS AND THE EMPLOYEE RESPONSIBLE FOR HIS OR HER OWN MEDICAL CARE WOULD HAVE EVERY INCENTIVE TO GET EFFECTIVE CARE AT THE LOWEST COST HOWEVER THAT SENSIBLE SOLUTION SEEMS TO BE POLITICALLY IMPOSSIBLE ONCE A BAD LAW IS PASSED IT HAS PROVED DIFFICULT GENERALLY IMPOSSIBLE TO ERASE IT FROM THE STATUTE BOOKS THE RESULT IS THAT ONE BAD LAW LEADS TO ADDITIONAL BAD LAWS A SECONDBEST ALTERNATIVE IS THE PROPOSAL FOR NONTAXABLE MEDISAVE ACCOUNTS UNDER THE CONTROL OF THE EMPLOYEE INTO WHICH THE EMPLOYER COULD DEPOSIT FUNDS IN LIEU OF PROVIDING THE MEDICAL CARE DIRECTLY WHILE THAT WOULD STILL DISTORT THE PERCEIVED COST OF MEDICAL CARE IT WOULD HAVE THE ENORMOUS ADVANTAGE OF GIVING CONTROL OVER THE FUNDS TO THE PERSON WHO HAS THE STRONGEST INCENTIVE TO USE THEM MOST EFFICIENTLY NOBODY SPENDS SOMEBODY ELSE'S MONEY AS CAREFULLY AS HE SPENDS HIS OWN MR FRIEDMAN WHO WON THE 1976 NOBEL PRIZE IN ECONOMICS IS A FELLOW AT STANFORD'S HOOVER INSTITUTION HIS MOST RECENT BOOK IS MONEY MISCHIEF HARCOURT BRACE JOVANOVICH 1992 A LETTER FROM MR FRIEDMAN ON ANOTHER TOPIC APPEARS TODAY 9306010163 930601 ECONOMY MACHINETOOL ORDERS ROSE IN APRIL AS CAR MAKERS CONTINUED TO BUY GEAR BY ERLE NORTON STAFF REPORTER OF THE WALL STREET JOURNAL MACHINETOOL ORDERS ROSE TO 3482 MILLION IN APRIL UP 48 FROM MARCH AND A MUCH STRONGER 59 FROM A YEAR EARLIER AS AUTO MAKERS CONTINUED TO MAKE EQUIPMENT PURCHASES THE BIG THREE CAR MANUFACTURERS ALONG WITH TRANSPLANTS FROM OVERSEAS ARE ORDERING NEW MACHINETOOL EQUIPMENT AS THEY STRIVE TO BOOST PRODUCTIVITY TRIM COSTS AND TURN OUT NEW PRODUCTS FASTER AND BAYERISCHE MOTOREN WERKE AG STILL IS SEARCHING FOR EQUIPMENT FOR ITS PLANT UNDER CONSTRUCTION NEAR SPARTANBURG SC MACHINE TOOLS CUT AND FORM METAL PARTS FOR OTHER MACHINES AMONG THE MACHINETOOL MAKERS AIDED BY THE UPTURN IN AUTORELATED ORDERS ARE NEWCOR INC AND THE INDUSTRIALAUTOMATION DIVISION OF LITTON INDUSTRIES INC NEWCOR BASED IN TROY MICH SAID APRIL ORDERS WERE STRONGER THAN IN THE PREVIOUS FOUR MONTHS EXPERTS CAUTIONED AGAINST CALLING THE IMPROVED MACHINETOOL ORDERS A SIGN OF OVERALL ECONOMIC GROWTH DESPITE THE ORDERS' REPUTATION AS A HARBINGER INSTEAD THEY SAID COMPANIES ARE BUYING MACHINE TOOLS LARGELY TO IMPROVE THEIR MANUFACTURING PROCESSES ALMOST REGARDLESS OF THE ECONOMY ALL THESE FOLKS ARE REALLY BEING PRESSURED TO GET THE NEXT GENERATION OF COSTEFFICIENT EQUIPMENT ON THE FACTORY FLOOR SAID WILLIAM G COPELAND OF COPELAND ECONOMICS IN STAMFORD CONN ADDED R STEPHEN FLYNN PRESIDENT AND CHIEF EXECUTIVE OFFICER OF JONES & SHIPMAN INC PEOPLE HAVE WAITED AS LONG AS THEY CAN THE KENNESAW GA UNIT OF BRITAIN'S JONES & SHIPMAN PLC SAW ORDERS SOAR 20 IN APRIL BECAUSE CUSTOMERS NEED TO REPLACE OUTDATED EQUIPMENT MOREOVER MANY MACHINETOOL MAKERS REMAIN LEFT OUT OF THE BIG ORDER INCREASES A LARGE NUMBER OF BUILDERS ARE STILL SEEKING WORK FOR THE SECOND AND THIRD QUARTERS ALBERT W MOORE PRESIDENT OF THE ASSOCIATION FOR MANUFACTURING TECHNOLOGY SAID IN A STATEMENT COMPARED WITH LAST YEAR'S ORDERS THOUGH THE INCREASE IS SIGNIFICANT OVERALL MACHINE TOOL ORDERS SKYROCKETED 59 IN APRIL FROM 2195 MILLION IN APRIL 1992 ACCORDING TO THE AMT WHICH COMPILES THE FIGURES IN THE YEAR'S FIRST FOUR MONTHS ORDERS JUMPED 27 TO 114 BILLION FROM 896 MILLION DOMESTIC ORDERS TOTALED 3103 MILLION IN APRIL UP 21 FROM 3038 MILLION IN MARCH AND 63 FROM 1903 MILLION A YEAR EARLIER IN THE FIRST FOUR MONTHS DOMESTIC ORDERS JUMPED 27 TO 1 BILLION FROM 7914 MILLION EXPORT ORDERS SHOWED STRENGTH TOO THEY ROSE 34 FROM MARCH TO 379 MILLION FROM 283 MILLION AND 30 FROM APRIL 1992'S 292 MILLION IN THE YEAR TO DATE THEY SURGED 31 TO 137 MILLION FROM 1046 MILLION MEANWHILE THE AMERICAN MACHINE TOOL DISTRIBUTORS' ASSOCIATION SAID ITS MEMBERS EXPERIENCED A 14 DECLINE IN ORDERS IN APRIL FROM MARCH ACCORDING TO AN INDEX BASED ON A THREEYEAR PERIOD BUT COMPARED WITH APRIL 1992 ORDERS JUMPED 22 THE GROUP'S ORDER INDEX INCLUDES FOREIGNMADE MACHINE TOOLS 9306010162 930601 JAPAN'S BATTERED AUTO MAKERS ADOPT MIXED OUTLOOK FOR THE CURRENT YEAR BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO AFTER ONE OF ITS WORST YEARS JAPAN'S BATTERED AUTO INDUSTRY IS DIVIDED OVER WHETHER TO WELCOME A MODERATE TURNAROUND THIS YEAR OR BRACE FOR MORE PAIN ON FRIDAY NISSAN MOTOR CO AND DAIHATSU MOTOR CO BOTH REPORTED PARENTCOMPANY PRETAX LOSSES FOR THE YEAR ENDED MARCH 31 BUT BOTH SAID THEY EXPECT TO STOP THE RED INK IN THE CURRENT YEAR MITSUBISHI MOTORS CORP WHICH SAW PARENT PRETAX PROFIT FALL 79 LAST YEAR SAID IT FORECASTS MAKING UP SOME OF THE LOST GROUND THIS YEAR WITH A 42 RISE IN EARNINGS MAZDA MOTOR CORP HOWEVER SAYS THE RECENT SHARP RISE IN THE VALUE OF THE YEN WILL ONLY MAKE THINGS WORSE BY HURTING SALES IN OVERSEAS MARKETS LAST YEAR WAS BAD ENOUGH FOR MAZDA WITH PARENT PRETAX PROFIT FALLING 683 THIS YEAR THE COMPANY EXPECTS A LOSS OF 12 BILLION YEN 1115 MILLION FUJI HEAVY INDUSTRIES LTD ON FRIDAY REPORTED A SMALL PROFIT FOR LAST YEAR AFTER TWO YEARS OF LOSSES BUT THE MAKER OF SUBARU CARS SAID THE STRONG YEN WILL PUSH IT BACK INTO THE RED THIS YEAR ANALYSTS GENERALLY AGREED THAT THE AUTO INDUSTRY'S PROSPECTS ARE CLOUDED BY EXCHANGERATE SHIFTS AND JAPAN'S CONTINUED ECONOMIC SLUMP JAPANESE AUTO MAKERS ARE IN THEIR WORST SHAPE IN HISTORY SAID KOJI ENDO AN ANALYST AT SG WARBURG SECURITIES LTD ALL 11 OF JAPAN'S VEHICLE MANUFACTURERS WILL SEE THEIR FINANCIAL CONDITION WORSEN THIS YEAR MR ENDO PREDICTED IN ANOTHER SIGN OF UNCERTAIN TIMES TOYOTA MOTOR CORP YESTERDAY SAID HIRING WILL BE DOWN 14 TO 2150 IN THE CURRENT FISCAL YEAR ENDING NEXT MARCH 31 AND THE COMPANY JAPAN'S LARGEST AUTO MAKER INTENDS TO HIRE JUST 400 NEW UNIVERSITY GRADUATES DOWN 40 FROM THE YEAR BEFORE NISSAN AS EXPECTED ANNOUNCED ITS FIRST PRETAX LOSS SINCE ITS LISTING ON THE TOKYO STOCK EXCHANGE IN 1951 THE PARENT PRETAX LOSS OF 2625 BILLION YEN WASN'T AS BAD AS THE 29 BILLIONYEN LOSS THE COMPANY HAD FORECAST BUT IT MARKED A SHARP PLUNGE IN FORTUNES FROM THE 8776 BILLION YEN PROFIT A YEAR EARLIER SALES FELL 87 TO 3897 TRILLION YEN FROM 4271 TRILLION YEN NISSAN OFFICIALS SAID THEY HOPE TO BREAK EVEN THIS YEAR THROUGH INTENSIVE COSTREDUCTION EFFORTS BY INCREASING THE NUMBER OF PARTS THAT ARE COMMON AMONG NEW CAR MODELS AND TAKING OTHER STREAMLINING MEASURES NISSAN AIMS TO CUT PRODUCTION COSTS BY 100 BILLION YEN THIS YEAR A SPOKESMAN SAID HE ADDED THAT THE AUTO MAKER WILL CUT CAPITAL SPENDING 15 TO 170 BILLION YEN SOME ANALYSTS HOWEVER SAID NISSAN'S MODEST FORECAST IS TOO OPTIMISTIC NISSAN HAS FEW MODELS THAT CAN SELL WELL IN THE DOMESTIC MARKET SAID NORIYUKI MATSUSHIMA AN ANALYST AT NIKKO RESEARCH CENTER MAZDA WHICH SUFFERED A DECLINE IN BOTH DOMESTIC SALES AND EXPORTS SAID PARENT PRETAX PROFIT FELL TO 624 BILLION YEN FROM 1967 BILLION YEN A YEAR EARLIER SALES FELL 49 TO 2191 TRILLION YEN FROM 2304 TRILLION YEN MAZDA WHICH IS 245OWNED BY FORD MOTOR CO EXPECTS SALES TO FALL FURTHER THIS YEAR TO 2070 TRILLION YEN FORCING THE EXPECTED 12 BILLIONYEN LOSS MITSUBISHI MOTORS BLAMED FOREIGNEXCHANGE LOSSES FOR ITS DROP IN PROFIT TO 4657 BILLION YEN FROM 5054 BILLION YEN A YEAR EARLIER COST REDUCTIONS AND PRICE INCREASES WILL HELP PUSH EARNINGS BACK UP TO 485 BILLION YEN THIS YEAR A SPOKESMAN SAID SALES LAST YEAR ROSE 24 TO 2616 TRILLION YEN FROM 2554 TRILLION YEN THE COMPANY IS FORECASTING SALES OF 263 TRILLION THIS YEAR DAIHATSU HIT HARD BY POOR SALES OF ITS MINICARS POSTED A LOSS OF 444 BILLION YEN FOR LAST YEAR COMPARED WITH PROFIT OF 457 BILLION YEN A YEAR EARLIER SALES STAYED ABOUT FLAT AT 78495 BILLION YEN THE COMPANY EXPECTS PROFIT OF FIVE BILLION YEN THIS YEAR ON SALES OF 840 BILLION YEN FUJI HEAVY INDUSTRIES REPORTED A PROFIT OF 139 MILLION YEN AGAINST ITS 409 BILLIONYEN LOSS A YEAR EARLIER THE COMPANY CREDITED COSTCUTTING EFFORTS AND BRISK SALES OF ITS NEW IMPREZA SUBCOMPACT SALES ROSE 6 TO 87304 BILLION YEN FROM 823917 BILLION YEN FUJI HEAVY EXPECTS A LOSS OF SEVEN BILLION YEN THIS YEAR ON SALES OF 870 BILLION YEN 9306010161 930601 RAYTHEON CO SEEKS TO ACQUIRE UK JET MAKER BRITISH AEROSPACE SUBSIDIARY WOULD EXTEND PRESENCE IN CORPORATE AIRCRAFT BY JOHN R WILKE STAFF REPORTER OF THE WALL STREET JOURNAL RAYTHEON CO PUSHING TO EXTEND ITS REACH IN THE CORPORATE JET MARKET IS NEGOTIATING TO BUY BRITISH AEROSPACE PLC'S BUSINESS JET SUBSIDIARY ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS IF THE NEGOTIATIONS ARE SUCCESSFUL RAYTHEON'S MARKET SHARE IN BUSINESS JETS WOULD NEARLY DOUBLE CHALLENGING INDUSTRY LEADER CESSNA AIRCRAFT WHICH IS A UNIT OF TEXTRON INC PROVIDENCE RI THE PURCHASE PRICE HADN'T BEEN AGREED UPON AS OF LATE YESTERDAY BUT IS EXPECTED TO TOTAL MORE THAN 300 MILLION THE INSIDERS SAID RAYTHEON CAUGHT IN THE DOWNDRAFT IN MILITARY SPENDING HAS BEEN WORKING TO BROADEN ITS COMMERCIAL BUSINESSES THE LEXINGTON MASS COMPANY ALREADY OWNS BEECH AIRCRAFT A WICHITA KANSAS MAKER OF TURBOPROP AND JET AIRCRAFT RAYTHEON'S LARGEST BUSINESS IS MISSILES INCLUDING THE PATRIOT AIR DEFENSE SYSTEM AND IT ALSO MAKES HOUSEHOLD APPLIANCES AND OPERATES A LARGE CONSTRUCTION SERVICES COMPANY PEOPLE IN THE INDUSTRY SAID THE TWO COMPANIES HAVE BEEN TALKING FOR A YEAR AND HAVE WALKED AWAY FROM THE TABLE TWICE THE LATEST ROUND OF TALKS HAS BEEN DIFFICULT AND COULD STILL COLLAPSE OVER PRICE OTHERS SAID BUT BOTH SIDES BADLY WANT THE DEAL TO HAPPEN SPOKESMEN FOR RAYTHEON AND FOR BRITISH AEROSPACE IN LONDON DECLINED TO COMMENT RAYTHEON APPARENTLY HOPES TO MAKE A BRITISH AEROSPACE DEAL WORK BY CONSOLIDATING THE UNIT WITH BEECH THE BRITISH AEROSPACE UNIT MANAGED LARGELY OUT OF LITTLE ROCK ARK EMPLOYS ABOUT 1200 PEOPLE BUT RAYTHEON COULD BE EXPECTED TO CUT THAT NUMBER THE UNIT NOW HAS A LARGE BACKLOG OF UNSOLD JETS PEOPLE IN THE INDUSTRY SAY MAKING IT LIKELY THAT MANUFACTURING OPERATIONS WILL BE SLOWED TO WORK IT OFF RAYTHEON TRIED TO BUY CESSNA TWO YEARS AGO BUT LOST OUT TO TEXTRON WHICH PAID GENERAL DYNAMICS CORP ABOUT 600 MILLION FOR THE UNIT THE WORLD MARKET FOR BUSINESS JETS HAS BEEN SOFT IN RECENT YEARS ESPECIALLY IN INTERNATIONAL SALES TEXTRON'S CESSNA IS THE LARGEST WITH AN ESTIMATED 60 SHARE OF LIGHT TO MEDIUM JET SALES LAST YEAR BEECH AND LEARJET A UNIT OF CANADA'S BOMBARDIER INC SPLIT MOST OF THE REST OF 1992 LIGHT JET SALES AT 12 TO 15 EACH A PERSON CLOSE TO THE DISCUSSIONS ESTIMATED SALES OF RAYTHEON'S AIRCRAFT UNIT WOULD RISE TO 17 BILLION A YEAR FROM 125 BILLION LAST YEAR IF A SALE GOES THROUGH HE SAID AN ACQUISITION IS CRITICAL FOR RAYTHEON BECAUSE IT GIVES THEM THE MIDSIZED INTERCONTINENTALRANGE BAE 800 AND BAE 1000 JETS IT WOULD ALSO GIVE RAYTHEON AN ENTREE INTO FOREIGN MARKETS WHERE BEECH JETS AREN'T YET CERTIFIED HE SAID BEECH'S MOST SUCCESSFUL LINE HAS BEEN ITS KING AIR TURBOPROP THE BEECH JET A LINE ORIGINALLY ACQUIRED FROM JAPAN'S MITSUBISHI HAS BEEN LESS SUCCESSFUL IN THE BUSINESS JET MARKET BUT HAS PROVED A STRONG SELLER AS A MILITARY TRAINING AIRCRAFT BUT COMPETITORS SAY THAT BEECH'S LATEST LINE STARSHIP A SWEPTWING REARENGINE MODEL IN WHICH RAYTHEON INVESTED HEAVILY HAS FARED POORLY SO FAR RAYTHEON'S AIRCRAFT PRODUCTS SEGMENT SALES WHICH INCLUDES BUSINESS JETS COMMUTER AND MILITARY JETTRAINER AIRCRAFT ROSE 14 IN 1992 AND RETURNED A 140 MILLION OPERATING PROFIT TOTAL 1992 SALES WERE 906 BILLION DOWN FROM 927 BILLION IN 1991 BUT NET ROSE 73 TO 6351 MILLION LARGELY AS A RESULT OF EXPENSE CONTROLS AND AN 11 CUT IN RAYTHEON'S WORK FORCE TO 63900 EMPLOYEES AT YEAR'S END BRITISH AEROSPACE IN APRIL LAST YEAR TRIED TO PUT A MAJORITY STAKE IN ITS CORPORATE JET UNIT UP FOR SALE WITH EARNINGS UNDER PRESSURE AND FACING THE HIGH COST OF DEVELOPING NEW MODELS IT ALSO MOVED TO SEGREGATE THE CORPORATE JET UNIT FROM ITS OTHER AIRCRAFT OPERATIONS WHICH INCLUDE A COMMUTER AIRCRAFT BUSINESS AND A HEAVY JET MANUFACTURING UNIT PART OF THE AIRBUS INDUSTRIE CONSORTIUM BUT THE COMPANY REVERSED ITSELF ONLY FIVE MONTHS LATER LAST SEPTEMBER PULLING THE UNIT OFF THE MARKET FOLLOWING THE COLLAPSE OF NEGOTIATIONS WITH A SUITOR NOW IDENTIFIED AS RAYTHEON IT HAD SOUGHT A JOINT VENTURE WITH ANOTHER COMPANY BUT COULDN'T FIND A PARTNER AND NOW HOPES TO SELL THE UNIT OUTRIGHT INSIDERS SAID 9306010160 930601 WHO'S NEWS CENTERIOR ENERGY CORP CENTERIOR ENERGY CORP INDEPENDENCE OHIO DONALD C SHELTON WAS APPOINTED SENIOR VICE PRESIDENT NUCLEAR OF THIS UTILITY HOLDING COMPANY A NEW POSITION MR SHELTON 60 YEARS OLD HAD BEEN A VICE PRESIDENT IN CHARGE OF THE DAVISBESSE NUCLEAR POWER STATION 9306010158 930601 JAPANESE STEELMAKERS SAY DROP IN DEMAND IS WRECKING PROFITS SPECIAL TO THE WALL STREET JOURNAL TOKYO JAPAN'S BIG STEELMAKERS REPORTED THAT THE SHARP DROP IN DOMESTIC DEMAND ALONG WITH LOWER PRICES IS WRECKING THEIR PROFITS FOR THE LAST FISCAL YEAR THE TOP SIX STEEL MAKERS NIPPON STEEL CO KAWASAKI STEEL CORP NKK CORP SUMITOMO METAL INDUSTRIES LTD KOBE STEEL LTD AND NISSHIN STEEL CO HAD PRETAX PROFIT DECLINES OF 60 TO 90 THE WORST SINCE THE PREVIOUS ECONOMIC RECESSION IN 19861987 JAPAN'S CRUDE STEEL PRODUCTION IN THE LAST FISCAL YEAR WHICH ENDED MARCH 31 DROPPED 65 TO 9893 MILLION METRIC TONS BECAUSE OF A SHARP FALL IN DEMAND FROM THE CONSTRUCTION CAR ELECTRONICS AND INDUSTRIAL MACHINERY INDUSTRIES OUTPUT SLID BELOW 100 MILLION METRIC TONS FOR THE FIRST TIME IN SIX YEARS A METRIC TON EQUALS 220462 POUNDS AND THE WORST HAS YET TO COME THE STEELMAKERS PREDICT PRETAX LOSSES FOR THE FIRST HALF OF THIS FISCAL YEAR BEFORE TURNING A PROFIT FOR THE FULL FISCAL YEAR EVEN AT NIPPON STEEL JAPAN'S LARGEST STEEL COMPANY WE HAVE TO BE PREPARED TO SEE AROUND FIVE BILLION YEN OF PRETAX LOSSES SAID TAKAO KATSUMATA EXECUTIVE VICE PRESIDENT AT A NEWS CONFERENCE ON EXPECTATIONS THAT JAPAN'S ECONOMY WILL PICK UP AFTER SUMMER AS PREDICTED BY GOVERNMENT OFFICIALS WE WANT TO TURN IN PROFITS OF 20 BILLION YEN 1859 MILLION FOR THE FULL FISCAL YEAR MR KATSUMATA SAID BUT IT'S A HOPE THE OUTLOOK IS REALLY UNCERTAIN FORECASTS BY OTHER STEELMAKERS ARE IN LINE WITH NIPPON STEEL'S WITH THEIR FULLYEAR OUTLOOK HEAVILY DEPENDENT ON PROSPECTS FOR AN ECONOMIC RECOVERY IN THE SECOND HALF ALTHOUGH ANALYSTS HAVE WARNED THAT THE STEELMAKERS ARE VERY LIKELY TO LOWER DIVIDEND PAYMENTS THE COMPANIES MAINTAINED THEM FOR THE LATEST FISCAL YEAR WITH THE EXCEPTION OF NISSHIN STEEL WHICH CUT ITS DIVIDEND TO FIVE YEN A SHARE FROM SEVEN YEN BUT NONE OF THE COMPANIES SAID IT WILL MAINTAIN THE CURRENT DIVIDEND LEVEL FOR THIS FISCAL YEAR END 9306010157 930601 MARKETING & MEDIA MACY IS EXPECTED TO UNVEIL TV HOMESHOPPING PLAN NEW YORK RH MACY & CO IS EXPECTED TO ANNOUNCE TODAY ITS PLAN TO ENTER THE HOMESHOPPING BUSINESS PEOPLE CLOSE TO THE SITUATION SAID CBS INC TELEVISION EXECUTIVE DON HEWITT IS THE RETAILER'S CONSULTANT IN THE VENTURE A SPOKESMAN FOR MACY DECLINED TO COMMENT BEYOND A SHORT STATEMENT FRIDAY THAT MACY WOULD HOLD A NEWS CONFERENCE THIS MORNING TO DISCUSS THE COMPANY'S PLANS TO ENTER TELEVISION RETAILING THE PEOPLE CLOSE TO THE SITUATION SAID MR HEWITT IS THE DRIVING FORCE BEHIND THE VENTURE MR HEWITT IS BEST KNOWN FOR HIS ROLE AS THE EXECUTIVE PRODUCER OF THE CBS NEWS PROGRAM 60 MINUTES ALSO TOM LAHEY A FORMER CBS MARKETING EXECUTIVE AND CURRENTLY HEAD OF THE THEATER DEVELOPMENT FUND WILL BE CHIEF EXECUTIVE OF THE MACY VENTURE AND SUSAN WINSTON FORMER EXECUTIVE PRODUCER OF ABC'S GOOD MORNING AMERICA WILL BE EXECUTIVE PRODUCER THE PEOPLE SAID MACY IS EXPECTED TO LAUNCH THE SHOPPING CHANNEL WHICH WOULD RUN 24 HOURS A DAY NEXT SUMMER 9306010156 930601 DIVIDEND NEWS DIBRELL BROTHERS INC DIBRELL BROTHERS INC DANVILLE VA A TOBACCO PROCESSOR AND FLOWER DISTRIBUTOR INCREASED ITS QUARTERLY DIVIDEND TO 18 CENTS A SHARE FROM 15 CENTS PAYABLE JUNE 15 TO SHAREHOLDERS OF RECORD JUNE 8 DIBRELL SAID THIS WAS THE 19TH CONSECUTIVE YEAR THAT IT HAS RAISED THE DIVIDEND 9306010155 930601 WHO'S NEWS BANK OF TOKYO BANK OF TOKYO TOKYO THE BANKING COMPANY'S BANK OF TOKYO TRUST CO UNIT IN NEW YORK NAMED JAMES J WALLACE JR 46 YEARS OLD EXECUTIVE VICE PRESIDENT AND KENNETH J ABERE 60 SENIOR VICE PRESIDENT AND CREDIT OFFICER MR WALLACE HAD BEEN GROUP EXECUTIVE FOR THE BANK'S US CORPORATE BANKING GROUP MR ABERE HAD BEEN CHAIRMAN OF THE CORPORATE AND MIDDLEMARKET CREDIT COMMITTEES AS WELL AS VICE CHAIRMAN OF THE INTERNATIONAL CREDIT COMMITTEE AT BANK OF NEW YORK 9306010154 930601 BUSINESS BRIEF STOKELY'S NET LOSSES WIDEN AFTER CHARGE FOR PLANT CLOSINGS OCONOMOWOC WIS STOKELY USA INC REPORTED WIDER LOSSES FOR THE FISCAL FOURTH QUARTER AND YEAR AFTER TAKING A 156 MILLION CHARGE TO COVER AN ACCOUNTING CHANGE AND THE COST OF CLOSING OR SELLING SIX PLANTS THE VEGETABLE PROCESSING COMPANY POSTED A LOSS OF 234 MILLION OR 282 A SHARE FOR ITS FOURTH QUARTER ENDED MARCH 31 COMPARED WITH A LOSS OF 89 MILLION OR 108 A SHARE A YEAR EARLIER FOR THE FISCAL YEAR STOKELY REPORTED A LOSS OF 303 MILLION OR 366 A SHARE COMPARED WITH A LOSS OF 107 MILLION OR 130 A SHARE THE PREVIOUS YEAR SALES FOR THE QUARTER SLIPPED TO 805 MILLION FROM 824 MILLION A YEAR EARLIER STOKELY THE NATION'S THIRDLARGEST SELLER OF CANNED VEGETABLES HAD ANNOUNCED PLANS TO SELL FOUR OF THE PLANTS COVERED BY THE CHARGE INCLUDING FROZENVEGETABLE PROCESSING PLANTS IN MCALLEN TEXAS AND MONTERREY MEXICO AND CANNING PLANTS IN HART MICH AND PAULDING OHIO STOKELY SAID A BUYER HAS BEEN FOUND FOR THE HART PLANT AND THAT THE SALE SHOULD BE COMPLETED EARLY IN JUNE THE COMPANY IS ALSO SELLING A FROZENVEGETABLE PLANT IN JEFFERSON WIS AND CLOSING A CANNING PLANT IN APPLETON WIS AFTER THIS PROCESSING SEASON STOKELY PLANS TO DISCONTINUE CORN PROCESSING AT ITS HOOPESTON ILL PLANT AFTER THE CURRENT SEASON THE US PLANTS TO BE SOLD HAVE ABOUT 110 FULLTIME EMPLOYEES AND SEASONAL EMPLOYMENT OF 940 THE MONTERREY PLANT EMPLOYS AS MANY AS 560 PEOPLE AT SEASONAL PEAKS THE FOURTH QUARTER RESTRUCTURING ACCOUNTED FOR 1395 MILLION OR 168 A SHARE OF THE TOTAL CHARGE WHILE THE ACCOUNTING CHARGE FOR RETIREE HEALTH LIABILITIES CAME TO 165 MILLION OR 20 CENTS A SHARE WHEN THE RESTRUCTURING IS COMPLETED THE COMPANY'S SALES VOLUME WILL BE REDUCED BY ABOUT ONETHIRD SAID PRESIDENT VERNON WIERSMA THE COMPANY WILL BE LEFT WITH 10 PROCESSING FACILITIES MR WIERSMA SAID THE COMPANY IS CONTINUING TO EXPLORE THE SALE OF ITS ENTIRE FROZENVEGETABLE BUSINESS 9306010153 930601 POSTAL SERVICE VIOLATED ITS LABOR CONTRACT AN ARBITRATOR RULES WASHINGTON AN ARBITRATOR SAID THE US POSTAL SERVICE VIOLATED ITS LABOR CONTRACT BY HIRING PRIVATE CONTRACTORS FOR SOME JOBS BEFORE OFFERING THEM TO POSTAL WORKERS THE DECISION DOESN'T AFFECT THE POSTAL SERVICE'S RIGHT TO USE CONTRACTORS AND IT DOESN'T REQUIRE THAT UNIONIZED POSTAL EMPLOYEES BE PAID HIGHER WAGES FOR THE JOBS THAN WOULD BE PAID IN THE PRIVATE SECTOR BUT THE DECISION STILL COULD AFFECT POSTMASTER GENERAL MARVIN RUNYON'S EFFORT TO TRIM THE AGENCY'S HIGH LABOR COSTS WHICH ACCOUNT FOR 80 OF ITS OPERATING EXPENSES THE ARBITRATOR CARLTON SNOW SAID THAT MOST OF THE PHENOMENAL SAVINGS THE POSTAL SERVICE EXPECTS FROM USING THE SUBCONTRACTORS RESULT AS MUCH FROM THE FLEXIBILITY OF THE PRIVATE SECTOR AS FROM LOWER WAGE SCALES MR SNOW SAID EVIDENCE SUBMITTED TO HIM MADE IT CLEAR THAT EXISTING WORK RULES MADE IT TOO COSTLY TO INCORPORATE THE JOBS INTO ITS REGULAR OPERATION NONETHELESS THE ARBITRATOR SAID THE POSTAL SERVICE HAD A CONTRACTUAL OBLIGATION TO FIRST OFFER ITS EMPLOYEES THE NEW MAILSORTING JOBS AS AN ALTERNATIVE UNION LEADERS WHO BEGAN CHALLENGING THE AGENCY'S PLAN IN 1990 CLAIMED THE DECISION AS A MAJOR VICTORY MOE BILLER PRESIDENT OF THE AMERICAN POSTAL WORKERS UNION CALLED IT ONE OF THE MOST SIGNIFICANT ARBITRATION DECISIONS IN THE UNION'S HISTORY POSTAL OFFICIALS DECLINED TO COMMENT UNTIL THEY REVIEW WHAT THEY CALLED A COMPLICATED DECISION A SPOKESMAN SAID THE ARBITRATOR SAID HE WOULD RETAIN JURISDICTION OVER THE CASE TO RESOLVE ANY FURTHER PROBLEMS THE NEW JOBS INVOLVE HAVING WORKERS READ ADDRESSES THAT COULDN'T BE READ BY ELECTRONIC MAILSORTING EQUIPMENT LAST YEAR THE POSTAL SERVICE BEGAN USING COMPUTERIZED EQUIPMENT TO DISPLAY THOSE ADDRESSES ON VIDEO SCREENS AND TRANSMIT THEM TO CONTRACT WORKERS AT DIFFERENT LOCATIONS WHO THEN READ THE ADDRESSES THE WORKERS THEN APPLIED THE PROPER SORTING CODES AND SENT THAT INFORMATION BACK TO THE POST OFFICE POSTAL OFFICIALS VIEW THE JOBS AS TEMPORARY BECAUSE THEY ARE EXPECTED TO END WITHIN EIGHT TO 10 YEARS WHEN NEW MAILSORTING EQUIPMENT IS EXPECTED TO READ ALL ADDRESSES INCLUDING HANDWRITING 9306010152 930601 WHO'S NEWS DIBRELL BROTHERS INC DIBRELL BROTHERS INC DANVILLE VA JOSEPH L LANIER JR CHAIRMAN AND CHIEF EXECUTIVE OFFICER OF DAN RIVER INC WAS ELECTED TO THE BOARD OF THIS TOBACCO PROCESSOR AND FLOWER DISTRIBUTOR MR LANIER 51 YEARS OLD FILLS A VACANCY ON THE 12MEMBER BOARD 9306010151 930601 HALLIBURTON UNIT EXECUTIVE QUESTIONED IN TAIWAN CASE LAW ENFORCEMENT OFFICIALS IN TAIWAN QUESTIONED AN EXECUTIVE OF HALLIBURTON CO'S BROWN & ROOT INTERNATIONAL INC SUBSIDIARY ABOUT ALLEGED BRIBES MADE BY THE COMPANY AND OTHERS TO OBTAIN A CONTRACT TO BUILD A WASTEWATER TREATMENT FACILITY THE COMPANY SAID BROWN & ROOT IS THE PRIME CONTRACTOR FOR THE FACILITY A 452 BILLION TAIWAN DOLLAR 1747 MILLION PROJECT AT STATERUN CHINESE PETROLEUM CORP'S KAOHSIUNG REFINERY A BROWN & ROOT SPOKESWOMAN SAID IN HOUSTON SHE ADDED THAT THE COMPANY HASN'T BEEN CHARGED WITH ANY WRONGDOING AND IS COOPERATING WITH AN INVESTIGATION INTO ALLEGATIONS THAT GOVERNMENT OFFICIALS WERE BRIBED WE HAVEN'T BEEN INVOLVED IN ANY AND WE DON'T HAVE ANY KNOWLEDGE OF ANY BRIBES THE SPOKESWOMAN SAID THE INVESTIGATION WAS DISCLOSED EARLIER THIS YEAR AFTER A TAIWANESE LEGISLATOR ALLEGED THAT BROWN & ROOT AND OTHERS BRIBED OFFICIALS AND WERE INVOLVED IN A SCHEME TO DEFRAUD THE GOVERNMENT HALLIBURTON AN OILSERVICE AND CONSTRUCTION COMPANY IS BASED IN DALLAS 9306010150 930601 BETHLEHEM STEEL TO BEGIN CONTRACT TALKS ON JUNE 8 BETHLEHEM PA BETHLEHEM STEEL CORP SAID IT WILL BEGIN TALKS WITH THE UNITED STEELWORKERS UNION ON JUNE 8 AIMED AT REACHING A PROMPT SETTLEMENT OF ITS LABOR CONTRACT EXPIRING JULY 31 BETHLEHEM'S ANNOUNCEMENT FRIDAY FOLLOWED BY A DAY INLAND STEEL INDUSTRIES INC'S AGREEMENT WITH THE UNION THAT ACCORD PROVIDES FOR A NOLAYOFF POLICY AND A UNION SEAT ON THE BOARD IN EXCHANGE FOR A REDUCTION IN WORK RULES AND COOPERATION IN WORK FORCE CUTS THROUGH ATTRITION THE SIXYEAR AGREEMENT PROVIDED WAGE INCREASES THAT WOULD AT LEAST KEEP PACE WITH INFLATION AND FOR A MANAGED HEALTHCARE PLAN BETHLEHEM SAID IT WILL WORK TOWARD A LONGERTERM AGREEMENT AND SAID IT EXPECTS TO ACHIEVE A TIMELY MUTUALLY SATISFACTORY SETTLEMENT NATIONAL STEEL CORP MAJORITY OWNED BY NKK CORP OF JAPAN AND ARMCO INC'S ARMCO STEEL ALSO HAVE AGREEMENTS EXPIRING JULY 31 THE UNION SAID A BARGAINING SCHEDULE IS BEING DISCUSSED WITH THOSE COMPANIES 9306010149 930601 JAPAN'S JOBLESS RATE STEADY TOKYO JAPAN'S JOBLESS RATE AFTER ADJUSTMENT FOR SEASONAL FACTORS HELD STEADY IN APRIL FROM MARCH AT 23 OF THE LABOR FORCE THE STATISTICS BUREAU SAID BUT ANOTHER KEY INDICATOR OF LABOR DEMAND WEAKENED FURTHER THE LABOR MINISTRY SAID THAT THE RATIO OF JOB OFFERS TO JOB SEEKERS A CLOSELY WATCHED INDICATOR OF LABOR CONDITIONS DROPPED TO 084 IN APRIL FROM 088 IN MARCH THE RATIO MEANS THERE WERE 84 JOB OFFERS FOR EVERY 100 WORKERS SEEKING EMPLOYMENT THE RATIO HAS DECLINED FOR 24 OF THE PAST 25 MONTHS A STATISTICS BUREAU OFFICIAL SAID THE RECENT TREND IS CONTINUING WITH MANUFACTURING EMPLOYMENT DOWN BUT JOB CONDITIONS FIRM IN OTHER SECTORS 9306010148 930601 CANADIAN BANKRUPTCIES DECLINE OTTAWA CANADIAN BANKRUPTCIES FELL 105 IN APRIL TO 5777 FROM 6455 A YEAR EARLIER THE FEDERAL CONSUMER AND CORPORATE AFFAIRS DEPARTMENT SAID INDIVIDUAL BANKRUPTCIES TOTALED 4730 IN APRIL DOWN 108 FROM A YEAR EARLIER AND BUSINESS BANKRUPTCIES TOTALED 1047 DOWN 92 FROM A YEAR EARLIER 9306010147 930601 THOMSON TO REDEEM SHARES TORONTO THOMSON CORP SAID IT PLANS TO REDEEM ON JUNE 21 ALL OF ITS CUMULATIVE REDEEMABLE RETRACTABLE PREFERENCE SHARES SERIES IV FOR 2550 CANADIAN DOLLARS US2018 EACH OR A TOTAL OF C51 MILLION US404 MILLION THOMSON IS A PUBLISHING INFORMATION AND TRAVEL CONCERN BASED HERE 9306010146 930601 WHO'S NEWS GUILFORD MILLS INC GUILFORD MILLS INC GREENSBORO NC STIG KRY AND TERRENCE GEREMSKI WERE ELECTED DIRECTORS OF THIS FABRIC SUPPLIER MR KRY 64 YEARS OLD IS CHAIRMAN EMERITUS AND FORMER CHIEF EXECUTIVE OFFICER OF KURT SALMON ASSOCIATES MR GEREMSKI 45 IS VICE PRESIDENT CHIEF FINANCIAL OFFICER AND TREASURER AT GUILFORD THEIR APPOINTMENTS INCREASE THE SIZE OF THE BOARD TO 10 MEMBERS 9306010145 930601 MEMOREX PLANS MORE REVAMPING TO POST CHARGE SPECIAL TO THE THE WALL STREET JOURNAL AMSTERDAM THE NETHERLANDS MEMOREX TELEX NV SAID THAT IT HAS BEGUN NEGOTIATIONS WITH ITS SENIOR BANKS AND NOTEHOLDERS TO UNDERTAKE A FURTHER FINANCIAL RESTRUCTURING THE COMPANY ALSO SAID IT WILL TAKE A ONETIME RESTRUCTURING CHARGE OF 165 MILLION FOR THE YEAR ENDING MARCH 31 IN CONNECTION WITH SIGNIFICANT REDUCTIONS IN WORK FORCE DISCONTINUED BUSINESSES AND PRODUCT LINES AND RELATED ASSET VALUATIONS THE COMPANY HAS PRESENTED TO THE BANKS AND NOTEHOLDERS A RESTRUCTURING PLAN THAT CALLS FOR CONVERSION OF ITS LONGTERM BANK DEBT AND PUBLIC DEBT IN THE PRINCIPAL AMOUNT OF 827 MILLION TO COMMON STOCK IN A NEWS RELEASE MEMOREX TELEX SAID THAT UNDER THE PLAN IT WOULD RETAIN ALL OPERATIONAL DEBT INCLUDING A 675 MILLION WORKING CAPITAL FACILITY ACCOUNTS RECEIVABLE FINANCING AND LOCAL BORROWINGS BY SUBSIDIARIES MOST OF THE EFFECTS OF REDUCING THE WORK FORCE AND DISCONTINUING OPERATIONS WOULD BE FELT IN THE US SAID MEMOREX TELEX VICE CHAIRMAN DAVID FAULKNER IN DALLAS WHERE THE US OPERATIONS ARE BASED THE COMPANY PLANS TO HALT DEVELOPMENT OF ITS LARGE DISKSTORAGE EQUIPMENT FOR MAINFRAME COMPUTERS COSTING ABOUT 100 JOBS ALTHOUGH IT WILL CONTINUE SERVICE AND SUPPORT OF ITS CURRENT CUSTOMERS WE'RE NOT GOING TO BE A PSEUDOMANUFACTURER MR FAULKNER SAID WE'RE GOING TO BE A DISTRIBUTOR OF PRODUCT FAULKNER WOULDN'T DISCLOSE THE TOTAL NUMBER OF JOBS TO BE CUT THE FINANCIAL RESTRUCTURING WOULDN'T AFFECT THE COMPANY'S TRADE CREDITORS WHO WOULD CONTINUE TO RECEIVE PAYMENTS IN FULL MEMOREX TELEX NV SAID THAT MORGAN GUARANTY TRUST CO OF NEW YORK THE ADMINISTRATIVE AGENT FOR THE BANK SYNDICATE AND THE SINGLE LARGEST HOLDER WITHIN THE FIRST PORTION OF THE TERM DEBT HAS EXPRESSED SUPPORT FOR THE RESTRUCTURING PLAN MORGAN GUARANTY IS A UNIT OF JP MORGAN & CO THE COMPANY ALSO SAID NORTHWESTERN MUTUAL LIFE INSURANCE CO THE LARGEST HOLDER WITHIN THE SECOND PORTION OF THE TERM DEBT WILL ALSO SUPPORT THE PLAN IN ADDITION THE COMPANY SAID ITS LARGEST NOTEHOLDER APOLLO ADVISORS HAS INDICATED IT WILL SUPPORT THE MEMOREX TELEX PLAN THE COMPANY SAID THAT ALTHOUGH IT WOULDN'T MAKE THE JUNE 1 INTEREST PAYMENT ON ITS TERM DEBT MANAGEMENT WAS CONFIDENT THAT THE LENDERS WOULD CONTINUE TO SUPPORT THE COMPANY UNTIL THE RESTRUCTURING IS CONCLUDED THE COMPANY SAID IT EXPECTS TO INCUR A SUBSTANTIAL LOSS FOR THE YEAR AND THAT REVENUE WILL BE 133 BILLION MEMOREX TELEX NV REPORTED NET INCOME LAST YEAR OF 1043 MILLION ON REVENUES OF 15 BILLION NET INCLUDED A GAIN OF 3172 MILLION FROM A REORGANIZATION 9306010144 930601 MARKETSCAN REVIVING BRECK NEW BOTTLES NO GIRLS' BY PAULINE YOSHIHASHI STAFF REPORTER OF THE WALL STREET JOURNAL BRECK THE VENERABLE HAIRCARE BRAND IS FINDING THAT AN OLD NAME COMBINED WITH A NEW LOOK ISN'T A FORMULA FOR INSTANT SUCCESS THE DORMANT BRECK LINE WHICH WAS SNAPPED UP BY DIAL CORP FOR AN ESTIMATED 40 MILLION TO 50 MILLION IN 1990 WAS RELAUNCHED LAST YEAR AFTER A WHIRLWIND MAKEOVER AS A PREMIUM BRAND PACKAGED IN NEW OPAQUE PEACHCOLORED BOTTLES AND HAVING A FRUITY SCENT THE NEW BRECK BEARS NO RESEMBLANCE TO THE ORIGINAL BRECK PRODUCTS AND IN JUST AS BIG A DEPARTURE FROM THE PAST ADS HAVE ABANDONED THE FAMED BRECK GIRL AND INSTEAD FOCUS ON THE PRODUCT'S HEALTHFUL PROPERTIES BRECK'S RECENT SALES GROWTH HAS BEEN IMPRESSIVE BUT ITS MARKET SHARE IS MINUSCULE HIGHLIGHTING THE PROBLEMS OF THE HAIRCARE CATEGORY AND THE DIFFICULTIES IN REVIVING A FADED BRAND FOR A GENERATION OF AMERICANS BEAUTIFUL HAIR BRECK WAS SYNONYMOUS WITH SHAMPOO PASTEL PORTRAITS OF BRECK GIRLS INCLUDING BUDDING STARS CYBILL SHEPHERD KIM BASINGER CANDICE BERGEN AND BROOKE SHIELDS GRACED MAGAZINE PAGES FOR 40 YEARS BUT BY THE MID1970S WHEN THE BRECK GIRLS FELL VICTIM TO FEMINISM AND A DELUGE OF HERBALBASED COMPETITORS BRECK HAD LOST MUCH OF ITS LUSTER ANALYSTS SAY AMERICAN CYANAMID CO OF WAYNE NJ WHICH BOUGHT THE BRAND IN 1963 HAD REFORMULATED AND REPOSITIONED BRECK AS A BUDGET BRAND AND IN LATER YEARS SPENT LITTLE TO MARKET IT DIAL THE PHOENIX COMPANY WHOSE CONSUMER BRANDS INCLUDE PUREX BLEACH LUNCH BUCKET MICROWAVE MEALS AND DIAL BAR AND LIQUID SOAPS WAS EAGER TO GET INTO THE HAIRCARE BUSINESS WE THOUGHT THAT BY BUYING BRECK WITH THE HERITAGE IT HAS WE WOULD HAVE A COMPETITIVE ADVANTAGE SAYS JOHN TEETS DIAL'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MARKET RESEARCH SHOWED THAT THE BRAND INVENTED BY JOHN H BRECK SR OF SPRINGFIELD MASS AND FIRST SOLD COMMERCIALLY IN 1928 STILL HAS STRONG NAME RECOGNITION WITH CONSUMERS DIAL FIGURED IT COULD LOWER ITS COST OF ENTRY BY NOT STARTING FROM SCRATCH AND COULD TAP ITS EXPERTISE IN THE SOAP BUSINESS TO IMPROVE ITS ODDS SO FAR THOUGH THE COMPANY HAS FOUND THE EXPERIENCE HUMBLING WE'VE DONE A LOT OF LEARNING THE CHAIRMAN CONCEDES IN THE 12WEEK PERIOD ENDED APRIL 18 BRECK SHAMPOO HAD SALES OF 4 MILLION IN SUPERMARKETS DRUGSTORES AND MASSMERCHANDISE OUTLETS AN INCREASE OF MORE THAN 175 FROM A YEAR EARLIER ACCORDING TO INFORMATION RESOURCES INC'S INFOSCAN SERVICE BUT ITS SHARE OF THE 153 BILLION SHAMPOO CATEGORY IS A TINY 11 AND IT HAS ONLY 06 OF THE 700 MILLION CONDITIONER CATEGORY BRECK HAIR SPRAY HAS LESS THAN 3 OF THE MARKET ITS COLORING STYLING GEL MOUSSE AND SPRITZ EACH HOLD A FRACTION OF 1 OF THEIR MARKETS BRECK'S PROBLEMS ARE LARGELY ROOTED IN THE WOES OF THE HAIRCARE INDUSTRY A 45 BILLION CONSUMER CATEGORY CLUTTERED WITH HUNDREDS OF BRANDS AND PLAGUED BY THIN MARGINS IT'S ONE OF THE MOST FRAGMENTED LEAST BRANDLOYAL LOWESTMARGIN CATEGORIES AROUND SAYS ANDREW SHORE A PAINEWEBBER INC ANALYST IT'S VERY TOUGH TO BUILD MARKET SHARE PROFITABLY MOREOVER THE SHAMPOO WARS HAVE GOTTEN CONSIDERABLY TOUGHER IN RECENT YEARS BETWEEN 1980 AND 1983 IT COST ABOUT 10 MILLION TO 15 MILLION TO LAUNCH A SHAMPOO LINE AND THE SUCCESS RATE WAS AN ESTIMATED 60 MR SHORE'S RESEARCH SHOWS BUT BY 1989 TO 1991 LAUNCH COSTS HAD SOARED TO AN ESTIMATED 35 MILLION TO 40 MILLION WITH A 90 FAILURE RATE EVEN SUCH HAIRCARE GIANTS AS PROCTER & GAMBLE CO AND HELENE CURTIS INDUSTRIES INC TOO STRUGGLE TO HOLD SWAY OVER AMERICA'S FICKLE SHAMPOOERS PROCTER & GAMBLE'S PERT PLUS SHAMPOO AND CONDITIONER COMBINATION IS THE BESTSELLING BRAND WITH 104 OF THE MARKET IN THE LATEST 12WEEK PERIOD WHILE ITS HEAD & SHOULDERS HOLDS 87 AND ITS RESTYLED PANTENE PRO V LINE HAS CAPTURED 92 BUT P&G'S PRELL BRAND INTRODUCED IN 1947 PUT LOYAL USERS IN A LATHER RECENTLY WHEN IT CUT BACK ON ITS FAMILIAR GREEN FORMULA IN FAVOR OF A BLUE MOISTURIZING VERSION PRELL WENT GREEN AGAIN WHEN CUSTOMERS COMPLAINED BUT THE BRAND HOLDS A SLIM 16 OF THE MARKET AND MAY BE TARGETED FOR RETIREMENT BY P&G ANALYSTS SAY SIMILARLY REVLON INC'S FLEX BRAND STUMBLED A FEW YEARS AGO WHEN THE COMPANY OVERHAULED THE FORMULA AND PACKAGING SHOPPERS MISSED ITS DISTINCTIVE BALSAM SMELL REVLON SWITCHED BACK TO THE OLD FORMULA AND EVEN RAN ADS CONCEDING THAT CONSUMERS DIDN'T LIKE THE NEW FORMULA INDUSTRY PROBLEMS ASIDE DIAL ADMITS TO SOME MISSTEPS THAT IT IS NOW LOOKING TO CORRECT THE NEW BRECK WAS REFORMULATED TO INCLUDE VITASOMES OR VITAMIN CELLS THAT ARE SUPPOSED TO POP OPEN DURING SHAMPOOING AND WAS POSITIONED AS A PREMIUMPRICED BRAND TO SELL AT 329 TO 369 FOR A 15OUNCE BOTTLE WE THOUGHT THE BRAND NEEDED UPDATING THAT THE OLD BRECK WAS KIND OF DATED MR TEETS SAYS AS A RESULT THE NEW BRECK IS COMPLETELY DIFFERENT FROM THE GOLD FORMULA THAT MANY CONSUMERS REMEMBER AND SOME MARKETING EXPERTS ARGUE THAT THE HEALTHYHAIR PITCH FEATURED IN THE 50 MILLION AD AND PROMOTIONAL CAMPAIGN DOESN'T FIT WITH CONSUMERS' MEMORIES OF BRECK PEOPLE REMEMBER THE BEAUTIFUL HAIR BRECK LINE THE SMELL AND THE PRODUCT POSITION AND HERE YOU'RE DOING AWAY WITH TWO OUT OF THE THREE SAYS AL RIES CHAIRMAN OF THE TROUT & RIES MARKETINGSTRATEGY FIRM IN GREENWICH CONN OTHER MARKETERS SAY IT'S TOUGH TO PERSUADE CUSTOMERS THAT SHAMPOOS REALLY ARE DIFFERENT AND SUCH DISTINCTIONS AS VITAMINENRICHED MAY LOSE OUT TO CUSTOMER CONCERNS OVER PRICE AND WITH BUDGET BRANDS LIKE HELENE CURTIS'S POPULAR SUAVE SHAMPOO BEING SOLD FOR AS LITTLE AS 99 CENTS ON SALE THE COST OF SWITCHING CAN BE NEGLIGIBLE THERE'S LITTLE BRAND LOYALTY BECAUSE SHAMPOO IS A BUSINESS OF HOPE SAYS DAVID CULLEN A PRINCIPAL OF NEW ENGLAND CONSULTING GROUP OF WESTPORT CONN PEOPLE BUY NEW BRANDS IN THE HOPE THAT THEY'LL PRODUCE BETTER RESULTS THAN THE LAST BRECK ALSO ENDED UP RELAUNCHING THE LINE IN A WEAK ECONOMY WHEN CONSUMERS ARE MORE COSTCONSCIOUS THAN EVER AND IT DIDN'T COUNT ON HELENE CURTIS ROLLING OUT ITS VIBRANCE LINE IN MARCH OF LAST YEAR PACKED IN PEACHCOLORED BOTTLES AND ALSO AIMING FOR THE HEALTHY HAIR MARKET ANOTHER FORMIDABLE COMPETITOR USING THE HEALTH PITCH IS THE PANTENE PRO V LINE LESLEY WYNN AN ADVERTISING SUPERVISOR FROM LOS ANGELES WHOSE THICK WAVY BROWN HAIR CASCADES HALFWAY DOWN HER BACK SAYS SHE WAS ENTICED TO TRY A SAMPLE SIZE OF BRECK SHAMPOO AFTER SEEING A TELEVISION COMMERCIAL THAT SHOWS A ROMANTIC SHOT OF A MAN LATHERING A WOMAN'S TRESSES THE VERDICT IT WAS PRETTY GOOD SHE SAYS MY HAIR WAS REALLY SOFT ALMOST AS IF I'D USED CONDITIONER SUCH PRONOUNCEMENTS CHEER DIAL NOW HARD AT WORK PLOTTING NEW STRATEGIES WE'RE GOING BACK AND REVISITING EVERYTHING FROM PACKAGING TO ADVERTISING TO SCENT TO THE POWERFUL NOSTALGIA ATTACHED TO THE ORIGINAL BRECK MR TEETS SAYS BUT BRECK SAYS ONE TACTIC IS UNLIKELY A REVIVAL OF THE BRECK GIRLS THE ORIGINAL BRECK GIRL PASTEL PORTRAITS NOW HANG IN DIAL HEADQUARTERS IN AN ERA IN WHICH A GIRLS PITCH IS MARKETING POISON TO MANY WOMEN NO ADDITIONS TO THE COLLECTION ARE CONTEMPLATED 9306010142 930601 PEPPERAND SALT BUGS YOU WONDER LEARNED TO THUNDER WOULD FRIGHTEN US ENLIGHTEN US FOR FIRE PREVENTION 9306010141 930601 MANAGING BY GILBERT FUCHSBERG EVEN AS MORE COMPANIES MOVE OUT OF BIG CITIES RECRUITING EXECUTIVES TO SMALLER CITIES AND TOWNS IS GETTING HARDER SEARCH FIRMS AND COMPANIES SAY ONE REASON IS THE GROWTH IN TWOCAREER HOUSEHOLDS MAKING IT TOUGHER FOR SPOUSES TO MOVE SAYS MICHAEL BOXBERGER MANAGING DIRECTOR NORTH AMERICA FOR RECRUITERS KORN/FERRY INTERNATIONAL IN CHICAGO AND WITH JOB SECURITY WANING EXECUTIVES CONSIDER CONTACTS MORE VITAL THAN EVER AND HARDER TO MAINTAIN AWAY FROM A BIG CITY PEOPLE WORRY THAT IF THEY MOVE THEY'LL LOSE THEIR NETWORKS SAYS PAUL R RAY JR PRESIDENT AND CHIEF EXECUTIVE OF RECRUITERS PAUL R RAY & CO FORT WORTH TEXAS SEARCHES FOR COMPANIES IN WHAT HE TERMS GEOGRAPHICALLY CHALLENGED LOCALES UNDER A HALFMILLION POPULATION AND FAR REMOVED FROM A MAJOR AIRPORT NOW REPRESENT NEARLY ONEFIFTH OF MR RAY'S BUSINESS DOUBLE THE SHARE A DECADE AGO YET HE ESTIMATES THAT JUST ONE IN FIVE FINAL CANDIDATES IN SUCH A SEARCH WOULD MAKE THE MOVE DOWN FROM TWO IN FIVE BACK THEN KORN/FERRY'S MR BOXBERGER ADDS A FEW YEARS AGO THE JOB COULD BE ON THE DARK SIDE OF THE MOON AND IT WOULDN'T MATTER THAT'S NO LONGER TRUE TO ATTRACT EXECUTIVES TO PERRIGO A HEALTHPRODUCTS COMPANY IN ALLEGAN MICH POPULATION 4000 WE HAVE TO SPEND A LOT MORE TIME SELLING THE COMMUNITY THAN EVER BEFORE SAYS LARRY LUTJENS VICE PRESIDENT HUMAN RESOURCES STEVE M NEIL RECRUITED AS PERRIGO'S CONTROLLER IN DECEMBER FROM SANTA BARBARA CALIF SAYS HE VISITED ALLEGAN FIVE TIMES BEFORE AGREEING TO MOVE HIS FAMILY I HAD NOT HEARD OF ALLEGAN NOR HAD I BEEN TO WESTERN MICHIGAN MR NEIL SAYS WE JUST NEEDED TO BE SURE SO FAR IT'S BEEN A GOOD RELATIONSHIP WITH THE COMPANY AND AREA BENCHMARKING THE INCREASINGLY POPULAR MANAGEMENT STRATEGY OF IMPROVING AN ORGANIZATION BY STUDYING HOW IT COMPARES WITH OTHERS FORCES A QUESTION THAT CAN CONSUME EXECUTIVES FOR MONTHS WHICH COMPANIES AND PRACTICES ARE WORTH EMULATING BUT HELP IS NOW AT HAND THROUGH SEVERAL AMBITIOUS EFFORTS TO CATALOG WHICH COMPANIES DO WHAT BEST AMERICAN PRODUCTIVITY & QUALITY CENTER A HOUSTON RESEARCH GROUP RECENTLY ESTABLISHED A BEST PRACTICES DATABASE OF 600 LEADING TECHNIQUES FROM 250 COMPANIES CULLED FROM MANAGEMENT JOURNALS AND OTHER PUBLICATIONS SOME 170 MEMBER COMPANIES OF THE CENTER'S INTERNATIONAL BENCHMARKING CLEARINGHOUSE SEARCH THE DATABASE ABOUT 100 TIMES MONTHLY LAST MONTH AMONG OTHER QUESTIONS THEY ASKED ABOUT COMPUTER MAKERS' BEST INVENTORYMANAGEMENT SYSTEMS AND DRUG COMPANIES' TOP PHILANTHROPIC ENDEAVORS GETTING THESE LEADS CAN CUT TWO MONTHS OFF A SIXMONTH STUDY SAYS CARLA O'DELL THE CLEARINGHOUSE'S DIRECTOR ABOUT 100 PRACTICES ARE ADDED TO THE DATABASE EACH MONTH AND OTHERS DELETED INFORMATION LIKE THIS IS LIKE FISH SHE ADDS IT STINKS WHEN IT GETS OLD ARTHUR ANDERSEN & CO HAS SQUEEZED MOUNDS OF INFORMATION ONTO A CDROM COMPUTER DISK ABOUT WHO DOES BEST IMPLEMENTING 18 BUSINESS CONCEPTS SUCH AS MEASURING CUSTOMER SATISFACTION AND EDUCATING EMPLOYEES THIS IS PART OF A 20 MILLION THREEYEAR EFFORT TO BUILD A CONSULTING PRACTICE AROUND BENCHMARKING SINCE LAST SUMMER WHEN ANDERSEN PUBLISHED THE FIRST VERSION OF THE CDROM DISK ITS CONSULTANTS HAVE USED IT TO ANSWER ABOUT 1000 QUERIES FROM CLIENTS WORLDWIDE SAYS ROBERT J HIEBELER THE PARTNER IN CHARGE OF THE PROJECT IN CHICAGO ANDERSEN EXPECTS TO EXPAND THIS KNOWLEDGE BASE EVERY FEW MONTHS HE SAYS SEVERAL COMPANIES INCLUDING DIGITAL EQUIPMENT AND EASTMAN KODAK HAVE DEVELOPED THEIR OWN DATABASES TO TRACK TOP TECHNIQUES KODAK STARTED ITS SYSTEM LAST YEAR BOTH TO DEVELOP A CENTRAL REFERENCE AND TO AVOID HAVING ITS UNITS DUPLICATE BENCHMARKING ACTIVITIES EFFORTS TO INCREASE WOMEN'S INTEREST IN MBA PROGRAMS SHOW SCANT RESULTS MANY OF THE NATION'S TOP BUSINESS SCHOOLS ALARMED ABOUT DROPS IN THE SHARE OF WOMEN ENROLLING IN RECENT YEARS BEGAN RECRUITING WOMEN MORE AGGRESSIVELY LAST FALL ENROLLMENT FIGURES WON'T BE KNOWN FOR MONTHS BUT IF APPLICATIONS ARE ANY MEASURE ONLY A FEW SCHOOLS HAVE HAD EVEN MEAGER BENEFITS TO SHOW FOR THEIR EFFORTS NORTHWESTERN UNIVERSITY'S KELLOGG SCHOOL REPORTS THE PERCENTAGE OF WOMEN APPLICANTS FOR THIS FALL'S ENTERING CLASS ROSE TO 29 FROM 27 LAST YEAR IN 1989 WOMEN MADE UP 32 OF MBA STUDENTS THERE THE SHARE OF WOMEN APPLYING TO WASHINGTON UNIVERSITY'S OLIN SCHOOL HELD STEADY AROUND 30 THIS YEAR BUT A JUMP IN THE TOTAL POOL RAISED THE NUMBER OF FEMALE APPLICANTS TO 271 FROM 233 AT COLUMBIA'S BUSINESS SCHOOL HOWEVER THE SHARE OF WOMEN APPLICANTS SLID TO 265 FROM 27 LAST YEAR DESPITE SPECIAL RECEPTIONS AND MAILINGS FOR WOMEN INDIANA UNIVERSITY ALSO HAD A DROP TO 459 WOMEN APPLICANTS FROM 483 AT CORNELL'S JOHNSON SCHOOL THE SHARE OF WOMEN APPLICANTS GREW TO 26 FROM 24 BUT THE NUMBER OF WOMEN APPLYING SLID TO 373 FROM 429 AS TOTAL APPLICATIONS FELL ADMISSIONS OFFICIALS SAY GROWING AWARENESS OF GLASS CEILINGS AND SEXUAL HARASSMENT IN BUSINESS HELPS EXPLAIN WHY WOMEN SEEM TO BE SOURING ON THE MBA MORE THAN MEN OFFICIALS PLEDGE YET MORE TARGETED MARKETING AND SPECIAL EFFORTS TO PERSUADE ACCEPTED STUDENTS TO ENROLL SEVERAL SCHOOLS INCLUDING KELLOGG AND CORNELL SAY THEY ALTERED THEIR ADMISSIONS PRACTICES SLIGHTLY THIS SPRING TO ADMIT GREATER SHARES OF WOMEN THAN THEY HAD IN THE PAST AND THAN WERE IN THEIR APPLICANT POOLS JUST UNDER ONETHIRD OF COMPANIES RUN DIVERSITY TRAINING PROGRAMS FOR EMPLOYEES MOST OF THEM A DAY OR LESS IN LENGTH SAYS A SURVEY OF 785 PERSONNEL EXECUTIVES BY THE SOCIETY FOR HUMAN RESOURCE MANAGEMENT ALEXANDRIA VA HEADLINE ON A RELEASE FROM OUTPLACEMENT COUNSELOR JAMES E CHALLENGER CHICAGO JOBLESS SEEK OUT A COMPANY IN TURMOIL 9306010140 930601 ECONOMY REBOUND SEEN FOR ECONOMY IN 2ND QUARTER ANALYSTS EXPECT A PICKUP FROM SLIM GROWTH RATE OF 09 IN 1ST PERIOD BY LUCINDA HARPER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON ANALYSTS ARE CONFIDENT THAT ECONOMIC GROWTH IN THE CURRENT QUARTER WILL BE BETTER THAN IT WAS IN THE SLUGGISH FIRST QUARTER REVISED FIGURES FROM THE COMMERCE DEPARTMENT PUT GROWTH AT A PALTRY 09 ANNUAL RATE IN THE FIRST THREE MONTHS OF THIS YEAR AFTER SUCH SLOW GROWTH THE SECOND QUARTER HAS TO BE BETTER SAYS MAUREEN ALLYN CHIEF ECONOMIST FOR SCUDDER STEVENS & CLARK INC MOREOVER RECENT ECONOMIC STATISTICS SUGGEST THAT DESPITE A DROP IN CONSUMER CONFIDENCE SPENDING BY CONSUMERS IS SHOWING SOME MODEST NEW LIFE RETAIL SALES WERE PROMISING IN APRIL AUTO SALES ROSE SHARPLY AND HOUSING STARTS REBOUNDED AFTER HORRIBLE WEATHER IN MARCH SPENDING ON DURABLE GOODS IS ON AN UPWARD TRACK SAYS THOMAS SWANSTROM OF CONSUMER ECONOMICS THIS WILL HELP LEAD US UP THE TAX INCREASE ON WEALTHY PEOPLE PASSED BY THE HOUSE THURSDAY MAY PUT A DAMPER ON SOME SPENDING IN THE COMING MONTHS IF THE SENATE GOES ALONG TO ANY SUBSTANTIAL DEGREE BUT SOME ANALYSTS BELIEVE ENACTMENT OF THE BILL COULD ALSO HAVE A POSITIVE EFFECT LIFTING THE CLIMATE OF UNCERTAINTY THAT HAS PLAGUED BUSINESSES SINCE THE FIRST OF THE YEAR MANY BUSINESSES HAVE PUT OFF MAKING PURCHASING DECISIONS BECAUSE THEY DON'T KNOW WHAT IS HAPPENING IN THE WAY OF TAXES SAYS DONALD RATAJCZAK HEAD OF ECONOMIC FORECASTING AT GEORGIA STATE UNIVERSITY AT LEAST IF THIS IS PASSED THEY'LL KNOW WHAT IS GOING ON MR RATAJCZAK ESTIMATES CONSUMER SPENDING WILL HELP PUSH GROSS DOMESTIC PRODUCT THE VALUE OF GOODS AND SERVICE PRODUCED IN THE US UP AT A 25 RATE IN THE SECOND QUARTER THE FACT THAT CONSUMER SPENDING SEEMS TO BE GETTING STRONGER AT A TIME WHEN PUBLIC CONFIDENCE IN THE ECONOMY IS WEAKENING IS A BIT IRONIC SAVE FOR A TINY RISE IN APRIL CONSUMER CONFIDENCE HAS BEEN IN A DOWNWARD SPIRAL SINCE THE START OF THE YEAR THE UNIVERSITY OF MICHIGAN INDEX SHOWED CONSUMER OPTIMISM DROPPED TO 803 IN MAY FROM 856 IN APRIL ACCORDING TO MARKET SOURCES WHO HAVE SEEN THE REPORT THE CONFERENCE BOARD'S CONSUMER INDEX ALSO WIDELY FOLLOWED DETERIORATED SHARPLY IN MAY AS WELL BUT ANALYSTS ATTRIBUTE THE DROP IN CONSUMER SENTIMENT MORE TO WORRIES ABOUT POLITICAL GRIDLOCK IN WASHINGTON THAN CONCERN ABOUT PERSONAL FINANCES AND THEY SAY IT ISN'T CLEAR THAT THE BAD MOOD IS AFFECTING SPENDING STILL THE ECONOMY IS FAR FROM BOOMING THE MANUFACTURING SECTOR IS PARTICULARLY WORRISOME AFTER GROWING AT A HEALTHY CLIP BETWEEN OCTOBER AND FEBRUARY MANUFACTURING GROWTH SEEMS TO HAVE SHUT DOWN IN MARCH AND APRIL INDUSTRIAL PRODUCTION AND DURABLEGOODS ORDERS ARE VIRTUALLY STAGNANT IT'S STARTING TO RAISE EYEBROWS AROUND HERE SAID THOMAS RUNIEWICZ INDUSTRIAL ECONOMIST FOR THE WEFA GROUP IN SUBURBAN PHILADELPHIA I WONDER IF MANUFACTURERS ARE GETTING COLD FEET IF THEY ARE IT'S UNDERSTANDABLE THERE WAS A MASSIVE INVENTORY BUILDUP IN THE FIRST QUARTER THE COMMERCE DEPARTMENT FIGURES SHOW IN FACT WITHOUT THAT BUILDUP AT A 368 BILLION ANNUAL RATE THE ECONOMY WOULD HAVE CONTRACTED THE ADDED INVENTORIES MEAN FACTORIES WILL MOST LIKELY REFRAIN FROM MAKING VERY MANY NEW GOODS UNTIL THEY GET RID OF THE ONES THEY HAVE ON THE SHELVES THE COMMERCE DEPARTMENT ORIGINALLY REPORTED THAT GDP GREW AT A 18 ANNUAL RATE IN THE FIRST QUARTER THE MAIN REASON FOR THE HALVING OF ITS ESTIMATE IS THAT THE TRADE DEFICIT DETERIORATED SHARPLY IN MARCH FIGURES THAT WEREN'T AVAILABLE WHEN THE FIRST ESTIMATE WAS MADE IN FACT THE US MERCHANDISE TRADE DEFICIT ON A BALANCEOFPAYMENTS BASIS WIDENED IN THE FIRST QUARTER TO 2907 BILLION THE COMMERCE DEPARTMENT SAID ON THE SAME BASIS THE DEFICIT TOTALED A REVISED 2596 BILLION IN THE FOURTH QUARTER THE QUARTERLY FIGURES ARE BASED ON THE MERCHANDISE TRADE FIGURES REPORTED MONTHLY BY THE DEPARTMENT BUT THEY EXCLUDE MILITARY SALES AND REFLECT CERTAIN OTHER ADJUSTMENTS THE DEPARTMENT SAID THAT CORPORATE AFTERTAX PROFITS ROSE 53 IN THE FIRST QUARTER AFTER SURGING 85 IN THE FOURTH QUARTER ANALYSTS SAID THE SLOWDOWN IN PROFITS IS PROBABLY THE RESULT OF BUSINESSES' INABILITY TO MAKE PRICE INCREASES STICK BECAUSE OF SLUGGISH DEMAND PRICES DURING THE QUARTER ROSE AT A 35 ANNUAL RATE THE STATISTICS INDICATE UP FROM 29 IN THE FOURTH PERIOD BUT MUCH OF THE DIFFERENCE BETWEEN THE QUARTERS REFLECTED EMPLOYEE SERVICES PURCHASED BY THE GOVERNMENT THAT IS A FEDERAL PAY RAISE ALL FIGURES HAVE BEEN ADJUSTED FOR NORMAL SEASONAL VARIATIONS HERE ARE SOME OF THE MAJOR COMPONENTS OF THE GROSS DOMESTIC PRODUCT EXPRESSED IN SEASONALLY ADJUSTED ANNUAL RATES IN BILLIONS OF CONSTANT 1987 DOLLARS IN THE FIRST QUARTER THE IMPLICIT PRICE DEFLATOR ROSE TO 1188 FROM 1179 IN THE PREVIOUS QUARTER 9306010139 930601 NEW STOCK LISTINGS NEW YORK THE NEW YORK STOCK EXCHANGE AND THE NATIONAL MARKET SYSTEM OF THE OVERTHECOUNTER MARKET EACH ANNOUNCED 11 NEW LISTINGS EACH ALSO INCLUDING EIGHT INITIAL PUBLIC OFFERINGS AND THE AMERICAN STOCK EXCHANGE ANNOUNCED THREE LISTINGS THE BIG BOARD SAID THAT IT BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS FILA HOLDING SPA BIELLA ITALY AN INTERNATIONAL SPORTSWEAR COMPANY AS AMERICAN DEPOSITARY SHARES UNDER THE SYMBOL FLH HEALTHCARE REALTY TRUST INC NASHVILLE TENN A REAL ESTATE INVESTMENT TRUST WITH HOLDINGS IN HEALTHCARE PROPERTIES UNDER HR MADECO SA SANTIAGO CHILE A MAKER OF COPPER AND ALUMINUM PRODUCTS AS AMERICAN DEPOSITARY SHARES UNDER MAD MARK CENTERS TRUST KINGSTON PA THE SUCCESSOR TO REAL ESTATE COMPANY MARK DEVELOPMENT GROUP UNDER MCT PAINEWEBBER PREMIER INSURED MUNICIPAL INCOME FUND INC NEW YORK A CLOSEDEND INVESTMENT MANAGEMENT COMPANY UNDER PIF SONAT OFFSHORE DRILLING INC HOUSTON A CONTRACT OIL AND GAS DRILLER OF OFFSHORE WELLS UNDER RIG TANGER FACTORY OUTLET CENTERS INC GREENSBORO NC A SELFMANAGED REAL ESTATE INVESTMENT TRUST OWNER OF FACTORY OUTLET CENTERS UNDER SKT AND TRINET CORPORATE REALTY TRUST INC SAN FRANCISCO A SELFMANAGED REAL ESTATE INVESTMENT TRUST UNDER TRI THE BIG BOARD ALSO BEGAN TRADING BOMBAY CO FORT WORTH TEXAS A RETAILER OF HOME FURNISHING PRODUCTS UNDER BBA AND SPORT SUPPLY GROUP INC FARMERS BRANCH TEXAS A CATALOG MARKETER OF SPORTS EQUIPMENT UNDER GYM BOTH COMPANIES PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE MANITOWOC CO MANITOWOC WIS A MAKER OF SPECIALIZED HEAVY EQUIPMENT PREVIOUSLY TRADED OVER THE COUNTER BEGAN TRADING UNDER MTW THE NATIONAL MARKET SYSTEM BEGAN TRADING THE FOLLOWING INITIAL OFFERINGS CDW COMPUTER CENTERS INC NORTHBROOK ILL A DIRECT MARKETER OF MSDOS AND MICROSOFT WINDOWSBASED MICROCOMPUTER PRODUCTS UNDER CDWC SANTA CRUZ OPERATION INC SANTA CRUZ CALIF A PROVIDER OF OPEN SYSTEMS SOFTWARE UNDER SCOC HAMILTON FINANCIAL SERVICES CORP SAN FRANCISCO A MORTGAGE BANKING COMPANY UNDER HFSC RESOURCE MORTGAGE GROUP INC COLUMBIA SC A MORTGAGE BANKING COMPANY UNDER REMI STATION CASINOS INC LAS VEGAS AN OPERATOR OF GAMING ENTERPRISES UNDER SCNO ZARING HOMES INC CINCINNATI A HOME BUILDER UNDER ZHOM STOLT COMEX SEAWAY SA MARSEILLE FRANCE A CONTRACTOR TO THE OFFSHORE OIL AND GAS INDUSTRY UNDER SCSWF AND SUPREME INTERNATIONAL CORP MIAMI A DESIGNER IMPORTER AND MARKETER OF MENSWEAR UNDER SUPI MOVING UP TO THE NATIONAL MARKET SYSTEM FROM THE NASDAQ SMALLCAP MARKET FOR SMALLER OVERTHECOUNTER STOCKS ARE RANDOM ACCESS INC DENVER A SELLER AND SERVICER OF MICROCOMPUTER SYSTEMS AND PRODUCTS UNDER RNDM AND IVF AMERICA INC GREENWICH CONN A MANAGER OF CLINICAL FACILITIES FOR ASSISTED REPRODUCTIVE SERVICES UNDER IVAFP FOR CUMULATIVE CONVERTIBLE PREFERRED SHARES FROZEN FOODS EXPRESS INDUSTRIES INC DALLAS A FROZEN FOODS TRUCKER BEGAN TRADING UNDER FFEX IT PREVIOUSLY TRADED ON THE AMERICAN STOCK EXCHANGE THE AMEX BEGAN TRADING OPTIONS ON NOISE COM INC PARAMUS NJ A DEVELOPER OF NOISESOURCE PRODUCTS USED TO TEST SIGNAL PERFORMANCE AND CAPACITY OF RADAR AND SATELLITE EQUIPMENT UNDER NOI ROADMASTER INDUSTRIES INC ENGLEWOOD COLO A MAKER OF RECREATION AND LEISURE EQUIPMENT UNDER RDM AND RAUCH INDUSTRIES INC GASTONIA NC A MAKER OF GLASS AND SATIN CHRISTMAS TREE ORNAMENTS UNDER RCH ALL PREVIOUSLY TRADED OVER THE COUNTER TRADING IN OPTIONS OF DEAN WITTER DISCOVER & CO AND GRAND CASINOS INC BEGIN TODAY ON THE AMEX CHICAGO BOARD OPTIONS EXCHANGE AND THE PACIFIC STOCK EXCHANGE THE PHILADELPHIA STOCK EXCHANGE ALSO BEGINS TRADING DEAN WITTER DISCOVER & CO OPTIONS THE AMEX AND PACIFIC EXCHANGE BEGAN TRADING OPTIONS IN XTRA CORP AND THE PACIFIC EXCHANGE BEGAN TRADING OPTIONS ON MAGNETEK INC AND SILICON GENERAL INC 9306010138 930601 FAA GROUNDS USAIR PILOT FOR ACTIONS DURING FLIGHT WASHINGTON THE FEDERAL AVIATION ADMINISTRATION REVOKED THE FLIGHT CERTIFICATE OF A USAIR GROUP PILOT SAYING HE ALLOWED A FLIGHT ATTENDANT TO OCCUPY HIS SEAT DURING A FLIGHT BETWEEN TAMPA FLA AND PHILADELPHIA IN AN EMERGENCY REVOCATION ORDER THE FAA SAID THE FLIGHT ATTENDANT STAYED IN THE SEAT WHILE THE FIRST OFFICER LANDED THE PASSENGER FLIGHT AT PHILADELPHIA LAST APRIL 21 THE ROLE OF THE FIRST OFFICER AND FLIGHT ATTENDANT WHO WAS TRAVELING AS A COMPANY EMPLOYEE NOT A SCHEDULED CREW MEMBER REMAINS UNDER INVESTIGATION ACCORDING TO THE REVOCATION ORDER THE PILOT CAPTAIN JON SWARTZENTRUBER OPERATED THE BOEING 737 AIRCRAFT IN A CARELESS OR RECKLESS MANNER BY PERMITTING THE FLIGHT ATTENDANT TO OCCUPY HIS SEAT AND TOUCH AND REST HER HANDS ON THE CONTROLS OF THE AIRCRAFT THE FAA SAID MR SWARTZENTRUBER WAS ELSEWHERE IN THE COCKPIT AT THE TIME MR SWARTZENTRUBER CAN APPEAL TO THE NATIONAL TRANSPORTATION SAFETY BOARD USAIR PRESIDENT SETH SCHOFIELD SAID THE AIRLINE INVESTIGATED THE INCIDENT AND CONCLUDING THE ALLEGATIONS WERE TRUE TERMINATED THE PILOT FIRST OFFICER AND FLIGHT ATTENDANT MR SWARTZENTRUBER COULDN'T BE REACHED FOR COMMENT 9306010137 930601 INTERNATIONAL FIAT'S 1992 EARNINGS FELL MORE THAN 50 CAR UNIT HAD SLIM NET A WALL STREET JOURNAL NEWS ROUNDUP MILAN BATTERED BY THE EUROPEAN RECESSION ITALIAN AUTO MAKER FIAT SPA REPORTED THAT 1992 NET INCOME PLUMMETED MORE THAN 50 TO 551 BILLION LIRE 3727 MILLION IN 1992 FROM 1114 TRILLION LIRE IN 1991 THE COMPANY CUT DIVIDENDS ON ORDINARY AND PREFERRED SHARES TO 100 LIRE FROM 230 LIRE A SHARE IN 1991 FIAT ALSO HALVED THE DIVIDEND ON SAVINGS SHARES TO 130 LIRE FROM 260 LIRE A SHARE THE COMPANY'S CORE AUTOMOBILE DIVISION BARELY BROKE EVEN REPORTING A SLIM PROFIT OF 16 BILLION LIRE DOWN FROM 415 BILLION LIRE IN 1991 FIAT'S NET INDEBTEDNESS BALLOONED LAST YEAR TO 3849 TRILLION LIRE FROM 270 BILLION LIRE IN 1991 THE COMPANY BLAMED THE INCREASE ON INVESTMENTS CONSOLIDATION OF ITS FORD NEW HOLLAND SUBSIDIARY AND THE DEVALUATION OF THE LIRE THE RESULTS WHILE BLEAK WERE IN LINE WITH EXPECTATIONS AFTER CHAIRMAN GIOVANNI AGNELLI SAID EARLIER THIS YEAR THAT 1992 NET WOULD BE AROUND 500 BILLION LIRE FIAT BLAMED THE POOR RESULTS ON THE SLUMP IN CAR DEMAND IN THE EUROPEAN MARKET AND HEAVY COSTS OF AN INVESTMENT PROGRAM TO RENOVATE ITS AGING MODEL LINEUP BY THE MID1990S A REDUCTION IN PRICES BECAUSE OF FIERCE COMPETITION ALSO CONTRIBUTED TO THE DECLINE FIAT MADE NO OTHER ANNOUNCEMENT WITH THE RESULTS THERE HAD BEEN SPECULATION IT MIGHT ANNOUNCE A COOPERATION OR STRATEGIC ACCORD AT THE SHAREHOLDERS' MEETING 9306010136 930601 INTERNATIONAL RUBLE FALLS TO RECORD LOW OF 1024 TO THE DOLLAR MOSCOW THE RUBLE PLUMMETED TO A RECORD LOW AGAINST THE DOLLAR WITH NO END TO THE DECLINE IN SIGHT IN TRADING AT THE MOSCOW INTERBANK CURRENCY EXCHANGE YESTERDAY THE RUSSIAN CURRENCY FELL TO 1024 TO THE DOLLAR THE FIRST TIME IT HAS OFFICIALLY BROKEN THE 1000 MARK FROM 994 TO THE DOLLAR AT THE PREVIOUS TRADING SESSION ON THURSDAY YESTERDAY'S SESSION MARKED THE START OF FOUR DAYS OF TRADING ON THE CURRENCY EXCHANGE EACH WEEK COMPARED WITH THE PREVIOUS TWICEAWEEK TRADING SCHEDULE A YEAR AGO WHEN THE RUBLE WAS TRADING AT ABOUT 100 TO THE DOLLAR THEN ECONOMICS MINISTER ANDREI NECHAYEV OFFERED TO BET JOURNALISTS THAT THE RUSSIAN CURRENCY WOULD SOON STABILIZE AT 50 TO THE DOLLAR IT'S A BET MANY NOW WISH THEY HAD TAKEN THE GOVERNMENT AND CENTRAL BANK RECENTLY SIGNED AN AGREEMENT CALLING FOR COOPERATION IN STEMMING RAMPANT INFLATION A PACT THAT COULD STRENGTHEN THE RUBLE THE BANK PLEDGED TO QUIT PROVIDING CHEAP CREDITS TO AILING STATE ENTERPRISES WHILE THE GOVERNMENT SAID IT WOULD NARROW ITS BUDGET DEFICIT BUT THERE ARE STRONG PRESSURES ON BOTH SIDES TO CONTINUE GIVING HANDOUTS TO NEEDY ENTERPRISES AND INDIVIDUALS FUELING THE INFLATION FIRE 9306010135 930601 NATIONSBANK EXPECTS TO COMPLETE TODAY SALE OF CERTAIN UNITS CHARLOTTE NC NATIONSBANK CORP EXPECTS TO CLOSE TODAY ON THE SALE OF CERTAIN COMMERCIAL MORTGAGEBANKING OPERATIONS TO REPUBLIC REALTY MORTGAGE CORP CHICAGO TERMS OF THE CASH TRANSACTION WEREN'T DISCLOSED NATIONSBANK BASED IN CHARLOTTE AND THE NATION'S FOURTHLARGEST BANKING CONCERN IS SELLING THOSE COMMERCIAL MORTGAGEBANKING AND REALESTATE INVESTMENT BANKING OPERATIONS THAT ARRANGE COMMERCIAL REALESTATE FINANCING WITH THIRD PARTIES SUCH AS INSURANCE COMPANIES AND PENSION FUNDS FOR FEES THE TRANSACTION ALSO INCLUDES A SERVICING PORTFOLIO OF MORE THAN 1 BILLION AND FOUR OFFICES NATIONSBANK SAID IT CONTINUES TO BE AN ACTIVE PARTICIPANT IN COMMERCIAL REALESTATE LENDING ITSELF BUT DECIDED TO GET OUT OF THE BUSINESS OF ARRANGING SUCH FINANCING FOR THIRD PARTIES JOHN B LEVY A SENIOR VICE PRESIDENT OF NATIONSBANK MORTGAGE CORP WILL JOIN REPUBLIC REALTY MORTGAGE AS AN EXECUTIVE VICE PRESIDENT AND PRINCIPAL THE ACQUISITION OF THE NATIONSBANK OPERATIONS BASED IN RICHMOND VA WILL MAKE REPUBLIC REALTY MORTGAGE THE NATION'S LARGEST PRIVATELY HELD COMMERCIAL MORTGAGE CONCERN WITH A SERVICING PORTFOLIO OF NEARLY 4 BILLION MR LEVY SAID SOME 32 NATIONSBANK EMPLOYEES WILL JOIN REPUBLIC AS PART OF THE TRANSACTION THE OPERATION BEING SOLD WAS FORMERLY PART OF SOVRAN MORTGAGE CORP WHICH NATIONSBANK ACQUIRED AS PART OF ITS 426 BILLION ACQUISITION OF C&S/SOVRAN CORP AT THE END OF 1991 SHORTLY AFTER THE ACQUISITION NATIONSBANK SAID IT PLANNED TO SELL THOSE MORTGAGE OPERATIONS AS WELL AS SOVRAN'S RESIDENTIAL MORTGAGE SERVICING UNIT WHICH WAS SOLD IN SEPTEMBER 1992 TO MARGARETTEN FINANCIAL CORP PERTH AMBOY NJ NATIONSBANK SAID NEITHER OF THOSE BUSINESSES FIT IN WITH ITS LONGTERM STRATEGY 9306010134 930601 RIGHTS GROUPS BUSINESS GIVE MILD PRAISE TO CLINTON DECISION ON CHINA MFN STATUS BY ROBERT S GREENBERGER STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON'S DECISION TO RENEW CHINA'S TRADE STATUS WITH SOME CONDITIONS WON MILD PRAISE FROM HUMANRIGHTS GROUPS WHICH WANTED STRONGER LINKS AND FROM BUSINESS WHICH PREFERRED NO CONDITIONS AT ALL MR CLINTON RENEWED CHINA'S TRADE STATUS AS A MOSTFAVORED NATION FOR ONE YEAR THEREBY GRANTING BEIJING THE SAME TARIFF TREATMENT THE US GIVES MOST OTHER TRADING PARTNERS IN EXTENDING THE BENEFIT THE ADMINISTRATION FOR THE FIRST TIME SET SOME GENERAL HUMANRIGHTS CONDITIONS THAT IT EXPECTS CHINA TO MEET SUCH AS SHOWING SIGNIFICANT PROGRESS IN RELEASING POLITICAL PRISONERS ENSURING INTERNATIONAL HUMANITARIAN GROUPS ACCESS TO PRISONS AND RESPECTING HUMAN RIGHTS IN TIBET THE ADMINISTRATION ALSO CALLED ON CHINA TO ABIDE BY TRADE AND WEAPONSNONPROLIFERATION ACCORDS TO WHICH IT ALREADY HAS AGREED THE PRESIDENT'S DECISION WAS PRAISED BY CONGRESSIONAL DEMOCRATS FOR ITS PART THE CHINESE GOVERNMENT STRONGLY DENOUNCED PRESIDENT CLINTON'S DECISION SAYING THE ACTION WOULD SERIOUSLY IMPAIR BILATERAL RELATIONS BUT THE CHINESE STATEMENT ISSUED BY THE OFFICIAL XINHUA NEWS AGENCY DIDN'T CONTAIN AN EXPLICIT THREAT OF RETALIATION IN MAKING THE DECISION MR CLINTON TRIED TO STRIKE A BALANCE BETWEEN HIS HARSH CAMPAIGN RHETORIC AND HIS DESIRE NOT TO DISRUPT USSINO RELATIONS DURING HIS CAMPAIGN HE ACCUSED FORMER PRESIDENT BUSH OF CODDLING AGING RULERS IN BEIJING AND THREATENED TO USE SANCTIONS TO PRESS CHINA TOWARD REFORM IN THE AREAS OF HUMAN RIGHTS TRADE AND WEAPONS PROLIFERATION BUT REFERRING LAST WEEK TO CHINA'S FASTGROWING ECONOMY MR CLINTON SAID THERE IS A GREAT OPPORTUNITY FOR AMERICA THERE ASIA WATCH A PRIVATE HUMANRIGHTS GROUP PRAISED MR CLINTON'S COMMITMENT TO PROMOTE HUMANRIGHTS IN CHINA BUT THE GROUP COMPLAINED THAT THE STANDARDS THE PRESIDENT SET AREN'T PRECISE ENOUGH MANY OF THE CONDITIONS ARE WORDED IN SUCH A VAGUE MANNER THAT THEY CREATE MAJOR LOOPHOLES THE GROUP SAID ON THE OTHER HAND THE UNITED STATESCHINA BUSINESS COUNCIL A PRIVATE BUSINESS GROUP SAID IT WAS DISAPPOINTED THAT MR CLINTON HAD ATTACHED HUMANRIGHTS CONDITIONS AT ALL THE ATTACHMENT OF CONDITIONS ADDS AN ELEMENT OF RISK THAT IS NOT CONDUCIVE TO COMMERCE IT SAID THE TEST OF MR CLINTON'S POLICY WILL COME NEXT YEAR WHEN THE SECRETARY OF STATE MUST DETERMINE WHETHER CHINA'S BEHAVIOR HAS IMPROVED OUR EFFORT HERE IS TO MAKE AS MUCH PROGRESS AS POSSIBLE WE WILL BE VERY FIRM IN OUR JUDGMENTS BUT WE'RE ALSO NOT TRYING TO SET UP A SERIES OF TOTALLY IMPOSSIBLE CONDITIONS ACROSS THE BOARD HOWEVER DESIRABLE THAT WE THINK CAN'T BE MET IN ONE YEAR SAID WINSTON LORD ASSISTANT SECRETARY OF STATE FOR ASIA 9306010133 930601 BEVERLY HILLS GUN CLUB AIMS AT PUBLIC OFFERING LOS ANGELES RIDING THE RISE IN GUN SALES AFTER LAST YEAR'S LOS ANGELES RIOTS A SHOOTING RANGE HERE IS GOING PUBLIC BEVERLY HILLS GUN CLUB INC ITS SINGLE SITE IS THREE MILES FROM THE NEAREST BORDER OF THAT UPSCALE COMMUNITY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION FOR AN INITIAL PUBLIC OFFERING OF ONE MILLION UNITS OF STOCK AND WARRANTS AT A PROPOSED PRICE OF 550 A UNIT EACH UNIT WILL CONSIST OF ONE SHARE OF COMMON STOCK AND A WARRANT TO BUY AN ADDITIONAL COMMON SHARE FOR 650 THE OFFERING WILL BE MADE THROUGH AMERICAN NATIONAL SECURITIES INC BEVERLY HILLS BEVERLY HILLS GUN CLUB CURRENTLY HAS ABOUT 11 MILLION SHARES OUTSTANDING BEVERLY HILLS GUN CLUB SAID IT WILL USE THE EXPECTED 45 MILLION NET PROCEEDS OF THE 55 MILLION OFFERING TO SET UP THREE MORE CLUB SITES FOR MARKETING AND FOR GENERAL CORPORATE PURPOSES AS OF MARCH 31 IT HAD 1900 MEMBERS ABOUT 1000 OF WHOM ARE LIFETIME MEMBERS WHO NO LONGER PAY TO USE THE RANGE FIRSTQUARTER NET INCOME TOTALED 58437 OR FIVE CENTS A SHARE REVENUE WAS 308948 THE COMPANY LAST YEAR HAD NET INCOME OF 52544 OR FIVE CENTS A SHARE ON REVENUE OF 988284 9306010132 930601 TECHNOLOGY & MEDICINE BABY BELLS WIN RULING ON INFORMATION SERVICES WASHINGTON THE US APPEALS COURT HERE UPHELD A LOWERCOURT DECISION ALLOWING THE SEVEN REGIONAL BELL TELEPHONE COMPANIES TO ENTER THE INFORMATIONSERVICES BUSINESS THE RULING AFFIRMED A 1991 DECISION BY FEDERAL JUDGE HAROLD GREENE WHO OVERSEES THE 1982 CONSENT DECREE THAT BROKE UP THE BELL SYSTEM JUDGE GREENE'S DECISION WAS APPEALED BY A BROAD COALITION OF INFORMATION PROVIDERS INCLUDING PRODIGY SERVICES CO AND COMPUSERVE INC ALONG WITH NEWSPAPER PUBLISHERS CABLE TELEVISION OPERATORS AND BROADCASTERS SINCE THE BAN WAS LIFTED THE REGIONAL BELLS AMERITECH CORP BELL ATLANTIC CORP BELLSOUTH CORP NYNEX CORP PACIFIC TELESIS GROUP SOUTHWESTERN BELL CORP AND U S WEST INC HAVE ROLLED OUT FEW INFORMATION SERVICES BUT THE LATEST DECISION IS CERTAIN TO SPUR MORE ACTIVITY THIS REMOVES ANY CLOUD THAT HAD BEEN HANGING OVER OUR INFORMATIONSERVICES BUSINESS SAID A SPOKESMAN FOR BELLSOUTH 9306010131 930601 ASTRA MAY SOON SHED ITS US OBSCURITY ANTIULCER DRUG'S SUCCESS LIFTS SWEDISH CONCERN'S FORTUNES BY STEPHEN D MOORE SPECIAL TO THE WALL STREET JOURNAL STOCKHOLM AB ASTRA IS ONE OF THE WORLD'S FASTESTGROWING DRUG MAKERS BUT IT REMAINS VIRTUALLY UNKNOWN IN THE US PREVIOUS MANAGEMENTS FRETTED THE SWEDISH COMPANY WAS TOO SMALL TO STRIKE OUT ON ITS OWN AND LICENSED AWAY US RIGHTS TO ASTRA'S MAJOR DRUGS HOWEVER SUCH APPREHENSION HAS FADED AS BOOMING SALES OF ANTIULCER DRUG LOSEC FILLED COMPANY COFFERS THE PAST FEW YEARS AND AT ASTRA'S RECENT ANNUAL SHAREHOLDERS MEETING CHIEF EXECUTIVE OFFICER HAKAN MOGREN DROPPED SOME TANTALIZING HINTS ABOUT HIS AMBITIOUS TRANSATLANTIC EXPANSION PLANS FIRST MR MOGREN DISCLOSED THAT US LICENSEE MERCK & CO NOW EXPECTS ITS SALES OF ASTRA PRODUCTS TO PASS A CRUCIAL TARGET DURING THIS YEAR'S THIRD QUARTER UNDER A 1982 ACCORD ASTRA GAINS THE RIGHT TO TRANSFORM MERCK'S CURRENT DIVISION FOR ASTRA PRODUCTS INTO AN INDEPENDENT JOINTLY OWNED SALES COMPANY ONCE MERCK HITS THAT STILL UNDISCLOSED SALES TARGET MOST INDUSTRY ANALYSTS ARE CONVINCED SUCH A JOINT VENTURE WOULD ALLOW ASTRA TO BOOST FUTURE US PROFITS FROM ITS PRODUCTS AT A FIRE SALE PRICE OF ROUGHLY 700 MILLION AND FEW DOUBT THE SWEDISH CONCERN WILL SEIZE THAT OPPORTUNITY THOUGH A FINAL DECISION ON THE MERCK COLLABORATION WON'T COME UNTIL LATE NEXT YEAR OR EARLY 1995 MR MOGREN RAISED EYEBROWS WITH COMMENTS ABOUT ASTRA'S SEPARATE WHOLLY OWNED US UNIT THAT WILL HANDLE SALES OF CERTAIN PRODUCTS EXCLUDED FROM THE MERCK PACT THE UNIT'S CROWN JEWEL IS A PORTFOLIO OF ANTIASTHMA DRUGS WHICH HAVE BEEN BIG SELLERS IN EUROPE BUT AREN'T YET AVAILABLE IN THE US SCRAMBLING TO MAKE UP FOR LOST TIME ASTRA IS RAPIDLY ASSEMBLING A NEW NATIONAL SALES FORCE TO PROMOTE RESPIRATORY DRUGS IN THE US AMONG GENERAL PRACTITIONERS MEANWHILE THE UNIT IS RUSHING AHEAD US CLINICAL TRIALS OF FLAGSHIP ANTIASTHMA DRUG PULMICORT IN COMBINATION WITH A PATENTED INHALER KNOWN AS TURBUHALER AIMING FOR A MARKET DEBUT BY MID1995 JUDGING BY PULMICORTTURBUHALER'S SUCCESS SO FAR IN EUROPE THE PAYOFF COULD BE HUGE OVERALL PULMICORT SALES SOARED 60 LAST YEAR TO 19 BILLION SWEDISH KRONOR 2624 MILLIONBUT SALES OF THE VERSION DELIVERED THROUGH THE TURBUHALER MORE THAN DOUBLED ANALYSTS ESTIMATE THAT PULMICORT SALES WILL APPROACH 1 BILLION BY THE MID1990S SUCH HEADY GROWTH REFLECTS A MAJOR THERAPEUTIC SHIFT SWEEPING THE 4 BILLIONAYEAR GLOBAL ANTIASTHMA MARKET TREATMENT OF ASTHMA IS MOVING RAPIDLY TOWARD INCREASED USE OF SOCALLED CORTICOSTEROID DRUGS LIKE PULMICORT WHICH TREAT THE UNDERLYING INFLAMMATION THAT CAUSES THE DISEASE COMPARED WITH THE PREVIOUS GENERATION OF DRUGS KNOWN AS BRONCHODILATORS WHICH MERELY EASE SYMPTOMS IN CONTRAST WITH EUROPE THAT THERAPEUTIC OVERHAUL IS BARELY UNDERWAY IN THE US WHERE BRONCHODILATOR PRESCRIPTIONS STILL OUTNUMBER CORTICOSTEROIDS BY A 5TO1 MARGIN BUT US SALES OF CORTICOSTERIOD DRUGS ARE GROWING TWICE AS FAST AS BRONCHODILATORS AND WITHIN A FEW YEARS PROBABLY WILL REPRESENT A MULTIBILLIONDOLLAR MARKET ANALYSTS SUGGEST IT'S CLEAR THAT ASTRA'S TURBUHALER IS FAR AND AWAY THE BEST PRODUCT ON THE MARKET FOR GETTING AN INHALED CORTICOSTEROID INTO A PATIENT'S LUNGS SAID DUNCAN MOORE A LONDONBASED DRUG ANALYST FOR MORGAN STANLEY & CO OVER THE NEXT COUPLE OF YEARS PULMICORTTURBUHALER IS GOING TO BE THE DRIVING FORCE IN THE SHIFT OF THERAPY TO INCREASED USE OF CORTICOSTEROIDS YET BRONCHODILATORS CLEARLY WILL REMAIN TOO BIG A MARKET TO IGNORE FOR SEVERAL MORE YEARS AND ALMOST CERTAINLY WILL SURVIVE AS THE DRUG OF CHOICE FOR SOCALLED RESCUE THERAPY TO RELIEVE ACUTE ASTHMA ATTACKS THUS ASTRA'S FLEDGLING US RESPIRATORY SALES FORCE NEEDS BOTH TYPES OF DRUGS TO BE TAKEN SERIOUSLY BY AMERICAN PHYSICIANS BUT MR MOGREN APPARENTLY INTENDS TO BYPASS BRICANYL THE BRONCHODILATOR ASTRA CURRENTLY MARKETS IN EUROPE TOGETHER WITH THE TURBUHALER CONCEDING THAT BRICANYL'S FUTURE REMAINS A TRICKY QUESTION AN ASTRA SPOKESMAN CONFIRMED THE COMPANY HASN'T BEGUN ANY US CLINICAL TESTING OF BRICANYLTURBUHALER INSTEAD HE SAID ASTRA IS DEVELOPING A COMBINATION OF TURBUHALER AND ANOTHER UNDISCLOSED BRONCHODILATOR WHOSE US PATENT HAS EXPIRED ANALYSTS INSIST THE MYSTERY BRONCHODILATOR IS ALMOST CERTAINLY SALBUTAMOL ALSO KNOWN BY ITS BRAND NAME VENTOLIN THE WORLD'S BIGGESTSELLING ANTIASTHMA MEDICINE DEVELOPED BY GLAXO HOLDINGS PLC IF SO ANALYSTS SAY THAT WOULD BE A MAJOR STRATEGIC TWIST ASTRA AND GLAXO ARE BITTER RIVALS IN THE ANTIULCER MARKET WHERE LOSEC HAS EMERGED AS THE BIGGEST THREAT TO GLAXO'S ZANTAC ONE OF THE WORLD'S BIGGESTSELLING MEDICINES GLAXO HAS LONG DOMINATED THE RESPIRATORYDRUG MARKET AND BESIDES SALBUTAMOL ALSO BOASTS THE WORLD'S LEADING CORTICOSTEROID DRUG BECOTIDE BOTH GLAXO AND ASTRA ARE FIERCELY PROUD OF THEIR RESEARCH PROWESS AND TRADITIONALLY DISMISSIVE OF COMPETITORS WHO DABBLE IN GENERIC MEDICINES THUS POACHING SALBUTAMOL AND LAUNCHING A GENERIC COPY WITH THE TURBUHALER WOULD BE OUT OF CHARACTER FOR ASTRA BUT IT ALSO WOULD GIVE THE SWEDISH COMPANY A MUCH FASTER START IN THE US RESPIRATORY MARKET ANALYSTS SAY IN AN INTERVIEW MR MOGREN SAID ASTRA'S TURBUHALER WOULD SIGNIFICANTLY ENHANCE MEDICAL EFFICACY OF ANY OFFPATENT COMPOUND WITH WHICH IT WAS USED THOSE PRODUCTS WILL FACE PLENTY OF COMPETITION HOWEVER GLAXO HAS DEVELOPED BALLYHOOED SUCCESSORS TO BOTH VENTOLIN AND BECOTIDE SEVERVENT A NEW LONGERACTING BRONCHODILATOR WAS APPROVED BY THE US FOOD AND DRUG ADMINISTRATION LATE LAST YEAR AND IS NOW AVAILABLE IN THE US MARKET FLIXOTIDE A CORTICOSTEROID VASTLY MORE POTENT THAN ITS PREDECESSOR BECOTIDE WON REGULATORY APPROVAL IN ITS MAIDEN MARKET THE UK EARLIER THIS YEAR MOST ANALYSTS EXPECT FLIXOTIDE TO REACH THE US MARKET BY 1995 IN THE MEANTIME THE EXPIRATION OF BECOTIDE'S US PATENT NEXT YEAR COULD GIVE SEVERAL HUNGRY GENERIC MANUFACTURERS A CHANCE TO JOIN THE ANTIASTHMA DRUGS FRAY TO DATE GENERIC COMPANIES HAVE BEEN THWARTED FROM CHURNING OUT COPIES OF OFFPATENT ASTHMA MEDICINES BECAUSE THE FDA HASN'T YET ISSUED SOCALLED BIOEQUIVALENCE STANDARDS FOR INHALED DRUGS SOME ANALYSTS FRET THAT THE BIG LEAD TURBUHALER CURRENTLY HOLDS OVER RIVAL INHALER DEVICES MAY NARROW BY THE TIME ASTRA'S DRUGS EMERGE FROM THE US REGULATORY LABYRINTH TURBUHALER WAS THE FIRST INHALER TO DISCARD SOCALLED CFC GASES WHICH PROPEL TRADITIONAL MULTIDOSE INHALERS USED BY MOST PHARMACEUTICAL COMPANIES THE INNOVATION PAID OFF AS ENVIRONMENTALLY CONSCIOUS US REGULATORS BEGAN CRACKING DOWN ON CFC USE PROMPTING PHYSICIANS AND PATIENTS TO INCREASINGLY TURN TO ASTRA'S PRODUCT HOWEVER MR MOORE THE MORGAN STANLEY ANALYST CAUTIONS THAT TURBUHALER HAS SOME IMPORTANT SHORTCOMINGS WHEN IT COMES TO BRONCHODILATORS WITH INHALED CORTICOSTEROIDS LIKE PULMICORT A PATIENT JUST NEEDS TO GET ENOUGH MEDICINE WITH BRONCHODILATORS DOSE IS RELATIVELY CRITICAL PATIENTS NEED TO GET ENOUGH BUT TOO MUCH ISN'T A GREAT IDEA HE SAID AS A RESULT ASTRA MIGHT HAVE MORE TROUBLE THAN MR MOGREN ANTICIPATES DISTINGUISHING ITS BRONCHODILATOR FROM OTHER GENERIC VERSIONS EXPECTED TO FLOOD THE MARKET 9306010130 930601 CANADIAN STEELMAKERS LOSE IN COMPLAINT ON IMPORTS OTTAWA THE CANADIAN INTERNATIONAL TRADE TRIBUNAL RULED THAT CANADIAN STEEL PRODUCTION HASN'T BEEN MATERIALLY INJURED BY THE SHIPMENT TO CANADA OF CERTAIN LOWPRICED SHEET STEEL FROM THE US AND FIVE OTHER COUNTRIES THE RULING MEANS THAT ANTIDUMPING LEVIES WON'T BE APPLIED TO FLAT HOTROLLED CARBON SHEET STEEL PRODUCTS FROM THE US GERMANY FRANCE ITALY NEW ZEALAND AND BRITAIN IT IS THE SECOND RULING BY THE TRIBUNAL WITHIN A MONTH TO FIND NO INJURY IN SHIPMENTS TO CANADA OF LOWPRICED STEEL FROM THE US THE PREVIOUS CASE INVOLVED CARBON STEEL PLATE US STEEL PRODUCERS ACCOUNT FOR MOST OF CANADA'S IMPORTS OF BOTH PRODUCTS HOTROLLED CARBON SHEET STEEL IS USED TO MAKE AUTO PARTS INCLUDING FRAMES BUMPERS AND WHEELS AND FOR BUILDING AND HIGHWAY MATERIALS CARBON STEEL PLATE IS USED IN CONSTRUCTION AND IN HEAVY EQUIPMENT SUCH AS RAIL CARS THE TRIBUNAL IS DUE TO RULE JULY 29 IN ANOTHER DUMPING COMPLAINT BY CANADIAN STEEL PRODUCERS INVOLVING COLDROLLED SHEET STEEL FROM FIVE COUNTRIES INCLUDING THE US THE TRADE COMPLAINTS WERE INITIATED BY CANADIAN STEEL PRODUCERS LAST YEAR AFTER THE US STEEL INDUSTRY FILED UNFAIRTRADE COMPLAINTS AGAINST STEEL MAKERS IN 19 COUNTRIES INCLUDING CANADA 9306010129 930601 DIVIDEND NEWS MCDONALD'S RAISES QUARTERLY PAYOUT WEIGHS STOCK SPLIT BY RICHARD GIBSON STAFF REPORTER OF THE WALL STREET JOURNAL OAK BROOK ILL MCDONALD'S CORP RAISED ITS QUARTERLY DIVIDEND AND INDICATED AT ITS ANNUAL MEETING THAT IT IS CONSIDERING SPLITTING ITS COMMON STOCK YOU MAY SEE SOME NEWS THIS YEAR THE COMPANY'S CHAIRMAN AND CHIEF EXECUTIVE OFFICER MICHAEL R QUINLAN TOLD SHAREHOLDERS FRIDAY WHEN ASKED IF A SPLIT WAS POSSIBLE HE SAID THE FASTFOOD COMPANY WANTS SHARES TO BE CHEAP ENOUGH FOR THE AVERAGE INDIVIDUAL CONSUMER SO OWNERSHIP ISN'T OVERWHELMINGLY INSTITUTIONAL AS OF LAST DECEMBER NEARLY 62 OF THE FASTFOOD COMPANY'S SHARES WERE IN INSTITUTIONAL HANDS MCDONALD'S CLOSED AT 4975 A SHARE UP 125 CENTS IN COMPOSITE TRADING ON THE NEW YORK STOCK EXCHANGE FRIDAY THE COMPANY RAISED ITS QUARTERLY DIVIDEND TO 1075 CENTS FROM 10 CENTS A SHARE PAYABLE JUNE 18 TO STOCK OF RECORD JUNE 7 THE DIVIDEND LAST INCREASED A YEAR AGO AS OF MARCH 31 THE COMPANY HAD ABOUT 3615 MILLION COMMON SHARES OUTSTANDING IN OTHER NEWS MCDONALD'S SAID IT IS EXPANDING ITS TEST OF SMOKEFREE RESTAURANTS TO ABOUT 1500 IN THE US ALTHOUGH IT WILL ALLOW FRANCHISEES TO DETERMINE LOCAL STORE POLICY THE COMPANY SAID IT WILL ALSO ADD FACETOFACE ORDERTAKING IN DRIVETHROUGH LANES AT NEW DOMESTIC UNITS TO REDUCE ERRORS AS FOR EXPANSION MCDONALD'S SAID ABOUT 300 STORES WILL BE ADDED THIS YEAR IN THE US AND 450 TO 600 ABROAD INCLUDING 100 IN JAPAN NEW COUNTRIES ON THE MCDONALD'S MAP THIS YEAR WILL INCLUDE ISRAEL ICELAND OMAN AND SAUDI ARABIA MCDONALD'S IS ALSO CONSIDERING CREATING PORTABLE OUTLETS FOR FAIRS FESTIVALS AND SPORTS EVENTS OTHER NEW SITE EXPERIMENTS INCLUDE SEVERAL STORES IN WALMART STORES AND ONE IN A CHICAGOAREA SUPERMARKET MR QUINLAN SAID HOWEVER THAT AN EXPERIMENT WITH TURNER BROADCASTING SYSTEM INC ON AN INSTORE TELEVISION CHANNEL WAS INCONCLUSIVE AND TALKS ON EXPANDING IT ARE GOING SLOWLY MCDONALD'S SAID POSSIBLE MENU ADDITIONS IN TEST INCLUDE MCSTUFFINS A LINE OF FRENCH BREAD STUFFED WITH CHICKEN PIZZA AND BEEF FRIED CHICKEN A GRILLED CHICKEN SANDWICH AND BUILDYOUROWN HAPPY MEALS FOR KIDS THE COMPANY ALSO SAID IT WILL TIE IN WITH THIS SUMMER'S EXPECTED BLOCKBUSTER MOVIE JURASSIC PARK WITH WHAT IT CALLS DINOSIZED ENTREES INCLUDING A TRIPLE CHEESEBURGER AND 32OUNCE DRINKS MR QUINLAN ALSO SAID US RESTAURANTS ARE BEING VISITED BY WHAT HE CALLED A SWAT TEAM THAT IS CHECKING ON QUALITY CONTROL THE EFFORT IS INTENDED TO PREVENT A FATAL OUTBREAK OF FOOD CONTAMINATION LIKE THAT WHICH HIT SOME JACK IN THE BOX RESTAURANTS ON THE WEST COAST SEVERAL MONTHS AGO 9306010128 930601 WHO'S NEWS DELMARVA POWER & LIGHT CO DELMARVA POWER & LIGHT CO WILMINGTON DEL THIS UTILITY COMPANY ELECTED MICHAEL G ABERCROMBIE 53 YEARS OLD ROBERT D BURRIS 48 AND JAMES H GILLIAM JR 48 TO FILL THREE OF FOUR VACANCIES ON ITS 11MEMBER BOARD THERE ARE NO CURRENT PLANS TO FILL THE LAST SEAT MR ABERCROMBIE IS PRESIDENT OF CATO INC A PETROLEUM DISTRIBUTORSHIP IN SALISBURY MD MR BURRIS IS PRESIDENT OF BURRIS FOODS INC A FAMILYOWNED REFRIGERATEDFOOD DISTRIBUTION COMPANY IN MILFORD DEL MR GILLIAM IS EXECUTIVE VICE PRESIDENT GENERAL COUNSEL AND DIRECTOR OF BENEFICIAL CORP IN WILMINGTON 9306010127 930601 WHO'S NEWS EXUS SECRETARY VANCE TO MEDIATE O&Y DISPUTE NEW YORK FORMER US SECRETARY OF STATE CYRUS VANCE WAS APPOINTED TO MEDIATE IN A DISPUTE BETWEEN THE EQUITY HOLDER AND CREDITORS OF OLYMPIA & YORK DEVELOPMENTS LTD'S US SUBSIDIARY MR VANCE WAS CHOSEN FOR THE JOB BY THE US TRUSTEE UNDER AN ORDER BY JUDGE JAMES GARRITY OF THE US BANKRUPTCY COURT FOR THE SOUTHERN DISTRICT OF NEW YORK UNDER THE ORDER THE MEDIATOR CALLED AN EXAMINER IS CHARGED WITH WORKING WITH THE FEUDING PARTIES TO REACH AN AGREEMENT ON AN INDEPENDENT BOARD FOR THE US SUBSIDIARY OLYMPIA & YORK COS USA MR VANCE IS TO REPORT BACK TO THE COURT ON HIS PROGRESS ON JUNE 10 THE SELECTION OF A MEDIATOR WITH MR VANCE'S STATURE INCREASES THE LIKELIHOOD THAT THE DISPUTE OVER O&Y USA'S BOARD CAN BE RESOLVED WHICH WOULD ALLOW NEGOTIATIONS TO RESTRUCTURE THE REAL ESTATE CONCERN'S 53 BILLION IN DEBT TO RESUME O&Y USA HAS BEEN WITHOUT A GOVERNING STRUCTURE SINCE ITS PARENT OLYMPIA & YORK DEVELOPMENTS IN TORONTO EMERGED FROM CANADIAN BANKRUPTCY COURT PROTECTION IN MARCH THE PARENT COMPANY IS BEING RUN BY A CANADIAN ADMINISTRATOR WHICH EFFECTIVELY HOLDS THE EQUITY OF THE US SUBSIDIARY 9306010126 930601 WHO'S NEWS TIME WARNER INC TIME WARNER INC NEW YORK STEVEN ROSENBERG AND BRUCE GAMACHE WERE NAMED EXECUTIVE VICE PRESIDENTS AT HBO INTERNATIONAL THE GLOBAL UNIT OF HOME BOX OFFICE INC THE PAYTELEVISION PROGRAM SUBSIDIARY OF THIS MEDIA AND ENTERTAINMENT COMPANY THE POSITIONS ARE NEWLY CREATED MR ROSENBERG 43 YEARS OLD PREVIOUSLY WAS SENIOR VICE PRESIDENT AT HBO INTERNATIONAL IN HIS NEW POSITION HE WILL BE RESPONSIBLE FOR HBO INTERESTS IN ASIA EASTERN EUROPE AND NEW ZEALAND MR GAMACHE 41 WAS VICE PRESIDENT OF FINANCE AND ANALYSIS AT HOME BOX OFFICE HE WILL NOW BE RESPONSIBLE FOR HBO INTERESTS IN LATIN AMERICA AND SCANDINAVIA AND FOR DEVELOPING OTHER WORLD MARKETS 9306010125 930601 AMID A BOOM CHINA'S BANKS ARE LOW ON CASH AT THE HEART OF THE PROBLEM IS THE COUNTRY'S MOVE TO A MARKET ECONOMY BY JULIA LEUNG STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG CHINA'S BANKS ARE SHORT ON CASH PARTICULARLY IN RURAL AREAS AS THE COUNTRY'S BANKERS AND ECONOMISTS TRAVERSE THE ILLDEFINED TERRITORY THAT SEPARATES THE COUNTRY'S OLD ECONOMY FROM THE ONE IT HOPES TO CREATE THE BANKS' DIFFICULTIES STEM FROM THE FACT THAT MANY OVEREXTENDED THEMSELVES IN THE CURRENT CAPITALINVESTMENT AND PROPERTYSPECULATION BOOM ONE ECONOMIST SAYS THUS THEY MUST NOW STRETCH TO MEET DAYTODAY OBLIGATIONS SUCH AS PROVIDING DEPOSITORS WITH ACCESS TO CASH THE FINANCIAL CRISIS IS DEEPENING BY THE DAY SAYS YANG PEIXIN A RESEARCH FELLOW AT THE RESEARCH CENTER FOR ECONOMIC TECHNOLOGICAL AND SOCIAL DEVELOPMENT A STATE COUNCILLEVEL THINK TANK SOME BANKS HAVE CURTAILED AFTERNOON BUSINESS HE SAYS AND SOME ENTERPRISES HAVE BEEN UNABLE TO PAY EMPLOYEES AND SUPPLIERS FOR LACK OF FUNDS AND IN MARCH MR YANG REPORTS THERE WERE SPORADIC BANK RUNS AS AN INDICATOR OF THE DEPTH OF THE PROBLEM MANY RURAL FARMERS ARE SAID TO STILL BE HOLDING BANK PROMISSORY NOTES IN EFFECT IOUS FROM SALE OF LAST YEAR'S CROPS THE BREWING CRISIS PERSUADED EXECUTIVE VICE PREMIER ZHU RONGJI RECENTLY TO FORM SEVEN CABINETLEVEL WORKING GROUPS AND TO SEND INVESTIGATIVE TEAMS TO THE PROVINCES BANKING SOURCES SAY BUT SUCH EFFORTS AREN'T EXPECTED TO PRODUCE AN IMMEDIATE REMEDY AT THE ROOT OF THE PROBLEM IS THE BANKS' MISMANAGEMENT OF ASSETS IN THE CURRENT CREDIT BOOM ACCORDING TO MR YANG AND OTHERS MANY BANKS HAVE POURED THE BULK OF THEIR FUNDS INTO LONGTERM FIXEDASSET INVESTMENTS FORSAKING REQUIREMENTS THAT THEY KEEP A CERTAIN RESERVE IN CASH OR IN MORE LIQUID HOLDINGS BANKS TRADITIONALLY SET ASIDE AS MUCH AS SIX YUAN 105 IN CASH FOR EACH 100 YUAN IN DEPOSITS THESE DAYS HOWEVER A BANK'S AVERAGE CASHRESERVE RATIO IS MORE LIKE 1TO100 MR YANG SAYS SO ILLIQUID ARE BANKS THAT THEY HAVE HAD TROUBLE PAYING FARMERS FOR THEIR HARVESTS EACH YEAR BEIJING ALLOCATES STATE FUNDS FOR GRAIN PROCUREMENT UNTIL THE FUNDS ARE NEEDED THEY ARE HELD AS DEPOSITS IN LOCAL GOVERNMENT BANKS HOWEVER AS EARLY AS LAST DECEMBER MANY RURAL BANKS WERE STRAPPED FOR CASH THEY ISSUED 30 BILLION YUAN 525 BILLION IN PROMISSORY NOTES TO FARMERS AS PAYMENT FOR 1992 CROPS SO FAR ONLY 10 HAVE BEEN HONORED MR YANG ASSERTS THE BURGEONING INTEREST IN CAPITAL INVESTMENT AND PROPERTY SPECULATION COMES WITH THE ADVENT OF INDUSTRIALDEVELOPMENT ZONES ABOUT 9000 ZONES HAVE SPRUNG UP ACROSS THE COUNTRY IN THE ATMOSPHERE OF ECONOMIC REFORM KICKED OFF BY PREMIER DENG XIAOPENG IN FEBRUARY 1992 ALTHOUGH THE ZONES ARE DESIGNED TO ATTRACT FOREIGN INVESTMENT MANY HAVE BECOME FERTILE GROUND FOR PROFITEERS ACCORDING TO AN ECONOMIST AT THE GUANGDONG ACADEMY OF SOCIAL SCIENCES MANY SENIOR COMMUNIST PARTY OFFICIALS WHO ARE IN A POSITION TO INFLUENCE THE DISTRIBUTION OF LANDDEVELOPMENT RIGHTS HAVE SET UP PROPERTY COMPANIES BANK LOAN OFFICERS ALSO HAVE SET UP SHOP PEDDLING ACCESS TO STATE LOANS MEANWHILE THE CHILDREN OF THE SENIOR CADRE BACKED BY EASY BANK CREDIT AND POLITICAL PULL HAVE TAKEN TO TRADING PROPERTY AMONG THEMSELVES INCREASING SPECULATION FEVER DURING THE FIRST QUARTER OF THIS YEAR FIXEDASSET INVESTMENTS JUMPED 71 FROM THE YEAREARLIER PERIOD TOTAL LENDING EXCEEDED TARGETS BY MORE THAN 30 IN THE SAME PERIOD HAD BANK DEPOSITS GROWN MORE ROBUSTLY THE CASH SHORTAGE WOULDN'T BE SO ACUTE BUT WITH INFLATION RUNNING AT 16 ANNUALLY IN MAJOR CITIES AND BANK DEPOSITS EARNING ONLY HALF THAT CHINESE CITIZENS HAVE BEGUN TO WITHDRAW THEIR SAVINGS SOME TO BUY CONSUMER GOODS OR GOLD JEWELRY OTHERS TO SEEK HIGHER RETURNS BY SPECULATING BY THE END OF MARCH TOTAL BANK DEPOSITS DECLINED BY 45 BILLION YUAN THE FIRST DROP SINCE 1988 LEGAL AND ILLEGAL INVESTMENT COMPANIES HAVE MUSHROOMED OFFERING DEPOSITORS ANNUAL RETURNS OF 20 TO 40 MANY ENTERPRISES HAVE BEGUN ISSUING SHARES PRIVATELY TO EMPLOYEES OTHERS NOW LEND SURPLUS FUNDS TO EACH OTHER INSTEAD OF PLACING THEM IN BANKS BY MR YANG'S ESTIMATE THIS BLACK MARKET IN MONEY IS AS BIG AS ITS FORMAL COUNTERPART THE SITUATION ILLUSTRATES THE PITFALLS OF AN ECONOMY IN TRANSITION MUCH OF THE OLD ORDER HAS BROKEN DOWN BUT NEW MARKET DISCIPLINE HASN'T BEEN ESTABLISHED BUT BEIJING ISN'T STANDING STILL THE SEVEN WORKING GROUPS SET UP BY MR ZHU THE VICE PREMIER HAVE ORDERED STATE BANKS TO RECOVER OUTSTANDING DEBTS AND TO PAY THEIR OVERDUE LIABILITIES IN THE INTERBANK MARKET THE GOVERNMENT IS HOPING TO FORCE BANKS TO EXTRACT FUNDS INVESTED IN PROPERTY BOOSTING THEIR LIQUIDITY ALSO THE GOVERNMENT HAS SAID IT INTENDS TO NULLIFY DEVELOPMENT RIGHTS FOR ENTERPRISE ZONES THAT HAVE ATTRACTED LITTLE INVESTMENT AND TO PREVENT FURTHER EROSION OF BANKS' DEPOSITS COMPANIES HAVE BEEN PROHIBITED FROM ISSUING SHARES PRIVATELY NICHOLAS KWAN A SENIOR ECONOMIST AT MERRILL LYNCH PIERCE FENNER & SMITH SINGAPORE PTE WELCOMES THE MOVES BUT HE FEELS THAT BEIJING MUST HIT THE BRAKES HARDER TO YIELD RESULTS THE MEASURES SO FAR AREN'T EFFECTIVE IN ATTRACTING MONEY BACK TO THE BANKING SYSTEM HE SAYS PROVINCES HAVE ALREADY COME UP WITH METHODS TO GET AROUND THE CENTRAL POLICIES 9306010124 930601 DONNA KARAN SEES LONG RUNWAY IN ASIA WHERE FASHION FIRM PENETRATES DEEPER BY SALLY D GOLL STAFF REPORTER OF THE WALL STREET JOURNAL HONG KONG DONNA KARAN ONE OF AMERICA'S LEADING DESIGNERS IS REALIZING HER GOAL OF BUILDING A GLOBAL FASHION BUSINESS AND HER BIGGEST MARKET OUTSIDE THE US IS TURNING OUT TO BE ASIA HER PRIVATELY HELD COMPANY DONNA KARAN CO IS EXPANDING STEADILY IN THE REGION WHILE MAINTAINING THE STRICT CONTROL OVER DISTRIBUTION THAT THE DESIGNER SAYS HAS BEEN CRITICAL TO HER SUCCESS DONNA KARAN CO RANG UP WORLDWIDE SALES OF MORE THAN 270 MILLION IN 1992 ACCORDING TO STEPHEN L RUZOW PRESIDENT AND CHIEF OPERATING OFFICER INTERNATIONAL SALES ACCOUNTED FOR 20 OF THE TOTAL WHILE ASIA CONTRIBUTED 13 ALREADY MS KARAN WHO RECENTLY VISITED TOKYO AND HONG KONG DISTRIBUTES HER MEN'S AND WOMEN'S SPORTSWEAR WOMEN'S READYTOWEAR INTIMATE APPAREL HOSIERY AND EYEWEAR UNDER THE DONNA KARAN NEW YORK DONNA KARAN MENSWEAR AND DKNY LABELS IN NEARLY 100 STORES IN FIVE ASIAN COUNTRIES PRICES RANGE FROM LESS THAN 100 FOR ACCESSORIES TO SEVERAL THOUSAND DOLLARS FOR CLOTHES IN HER SIGNATURE COLLECTIONS NOW MS KARAN IS BUILDING ON HER ESTABLISHED BASE BY EXPANDING DEEPER INTO SOUTHEAST ASIA JAPAN ACCOUNTS FOR THE BULK OF MS KARAN'S ASIAN BUSINESS THE DESIGNER'S GOODS ARE MARKETED THROUGH ISETAN MITSUKOSHI AND SEIBU DEPARTMENT STORES AMONG OTHER OUTLETS LAST YEAR DONNA KARAN CO TERMINATED ITS AGREEMENT WITH JAPANESE DISTRIBUTOR TAKIHYO CO AND ASSUMED RESPONSIBILITY FOR DISTRIBUTION AND MARKETING IN THE COUNTRY IN HONG KONG HER GOODS ARE DISTRIBUTED THROUGH WHAT MR RUZOW DESCRIBED AS AN UNWRITTEN EXCLUSIVE AGREEMENT WITH LOCALLY LISTED JOYCE BOUTIQUE HOLDINGS LTD HONG KONG SERVES AS MS KARAN'S ASIAN PRODUCTION CENTER BETWEEN 10 AND 30 OF HER SIGNATURE COLLECTIONS AND NEARLY 90 OF HER MORE MODERATELY PRICED DKNY LINES ARE PRODUCED IN HONG KONG TAIWAN AND SOUTH KOREA AS JAPANESE DEPARTMENT STORES HAVE EXPANDED INTO SOUTHEAST ASIA DONNA KARAN CO HAS GONE WITH THEM TODAY DONNA KARAN ITEMS ARE SOLD THROUGH ISETAN IN SINGAPORE AND KUALA LUMPUR MS KARAN PLANS TO HAVE A BOUTIQUE IN A NEW SOGO DEPARTMENT STORE THAT WILL OPEN IN JAKARTA LATER IN THE YEAR AND SHE IS PLANNING TO OPEN EARLY NEXT YEAR HER SECOND FREESTANDING BOUTIQUE IN TOKYO THROUGH A JOINT VENTURE WITH SHISEIDO CO'S THE GINZA MS KARAN PLANS TO STOP SELLING THROUGH HER TWO EXISTING ACCOUNTS IN TAIPEI IN ORDER TO DISTRIBUTE THERE THROUGH JOYCE BOUTIQUE'S WORLD OF JOYCE EMPORIUM WHICH IS SCHEDULED TO OPEN IN EARLY 1994 THE COMPANY HAS ALSO DISCUSSED EXPANDING INTO CHINA WITH JOYCE BOUTIQUE MS KARAN'S ASIAN BUSINESS MIGHT BE EVEN BIGGER NOW HAD THE JAPANESE BUBBLE ECONOMY NOT BURST WE HAVE SEEN A BIG RETRENCHMENT ON THE PART OF THE JAPANESE DEPARTMENT STORES SAYS MR RUZOW FROM 1988 TO 1990 MS KARAN'S JAPANESE BUSINESS INCREASED AT A RATE OF 30 A YEAR IN 1991 WITH THE ONSET OF JAPAN'S ECONOMIC WOES SALES GROWTH DECLINED TO 10 OTHER FOREIGN DESIGNERS' BUSINESS IN JAPAN DID MUCH WORSE SOME ITALIAN DESIGNERS SAW THEIR JAPANESE REVENUES PLUNGE BY AS MUCH AS 40 IN 1991 LAST YEAR MR RUZOW SAYS SALES GROWTH PICKED UP AGAIN MR RUZOW ATTRIBUTES DONNA KARAN'S RELATIVELY STRONG PERFORMANCE IN JAPAN TO THE INTEGRITY OF THE LINE AS WELL AS TO THE COMPANY'S PRICING POLICY UNLIKE MANY OTHER FOREIGN CLOTHING COMPANIES IN JAPAN DONNA KARAN CO DOESN'T SELL ON CONSIGNMENT AND IT ASSUMES TRANSPORT AND PROCESSING COSTS UP TO DELIVERY TO JAPANESE OUTLETS THAT MEANS PRICES FOR DONNA KARAN MERCHANDISE IN JAPAN ARE ONLY SLIGHTLY HIGHER THAN IN THE US IN JAPAN AND ELSEWHERE THE COMPANY RESTRICTS ITS DISTRIBUTION IN ORDER TO MAINTAIN CONTROL OVER PRODUCT IMAGE A STRATEGY BOTH MR RUZOW AND MS KARAN POINT TO IN ANALYZING THEIR SUCCESS WE COULD PROBABLY TRIPLE OUR BUSINESS IF WE DECIDED TO GO WITH A TRADING COMPANY OR LICENSE OUR NAME SAYS MR RUZOW THE WAY WE DO IT IS VERY HARD YET HE NOTES THAT EVEN UNDER SUCH SELFIMPOSED RESTRICTIONS THE COMPANY SOLD 70 MILLION OF MS KARAN'S READYTOWEAR COLLECTION IN FEWER THAN 200 STORES WORLDWIDE LAST YEAR IN ASIA MS KARAN SAYS SHE EXPECTS HER BIGGEST GROWTH TO COME FROM HER NEW MEN'S LINE IN 1992 A YEAR AND A HALF AFTER IT WAS LAUNCHED DONNA KARAN MENSWEAR RECORDED SALES OF NEARLY 50 MILLION I HONESTLY BELIEVE THE MENSWEAR MARKET HAS MUCH BIGGER POTENTIAL THAN WOMEN'S SAYS MS KARAN WHEN YOU HOOK A CUSTOMER YOU HOOK HIM FOR LIFE WOMEN ARE MORE FICKLE EVENTUALLY MR RUZOW SAYS MS KARAN WOULD LIKE TO OPEN SHOWROOMS IN MILAN OR PARIS AS WELL AS TOKYO UNTIL THEN RETAILERS INTERESTED IN MS KARAN'S LINES WILL HAVE TO CONTINUE VISITING NEW YORK FOUR TIMES A YEAR TO VIEW EACH NEW COLLECTION 9306010123 930601 CROCODILE DUNDEE' SELLS SHARES IN HIS NEXT MOVIE SYDNEY AUSTRALIA REUTER AUSTRALIAN MOVIE STAR PAUL CROCODILE DUNDEE HOGAN IS LISTING HIS NEXT FILM PROJECT LIGHTNING JACK ON THE AUSTRALIAN STOCK EXCHANGE A PROSPECTUS ON LIGHTNING JACK A 24 MILLION WESTERN ABOUT AN AUSTRALIAN OUTLAW SEEKING FAME AND FORTUNE IN THE US IN THE 1870S WILL BE AVAILABLE STARTING TODAY IT IS THE FIRST TIME THE EXCHANGE HAS EVER LISTED A MOVIE MR HOGAN IS OFFERING 35 MILLION SHARES AT 67 CENTS EACH WHILE CROCODILE DUNDEE WAS A HIT MR HOGAN'S RECENT FILM ALMOST AN ANGEL WAS A BOX OFFICE FLOP IN LAUNCHING HIS NEW VENTURE MR HOGAN SAID THE FILM WILL SUCCEED BECAUSE IT IS A BIG BOLD OUTDOOR ADVENTURE THAT HE BELIEVES IS FUNNIER THAN CROCODILE DUNDEE BUT NOT AS ROMANTIC PEOPLE DON'T LIKE ME DOING CERTAIN ROLES THE SAME WAY THEY DON'T LIKE TO SEE CLINT EASTWOOD AS A LAWYER MR HOGAN TOLD REPORTERS HE SAID PEOPLE WHO INVESTED IN HIS FIRST FILM CROCODILE DUNDEE WOULD BE GIVEN PREFERENCE IN ALLOCATION OF SHARES HE SAID THE ISSUE HAD BEEN UNDERWRITTEN TO THE TUNE OF 17 MILLION AND THAT HE EXPECTED MORE THAN 50 OF THE FILM'S BUDGET TO COME FROM AVERAGE PUNTERS 9306010122 930601 PENSION FUND BUYS THE RIVERCENTER MALL FROM DEBARTOLO CORP A WALL STREET JOURNAL NEWS ROUNDUP AN EAST COAST PUBLIC PENSION FUND HAS BOUGHT THE SAN ANTONIO RIVERCENTER MALL FROM EDWARD J DEBARTOLO CORP IN A TRANSACTION VALUED AT MORE THAN 100 MILLION THE SALE WAS ARRANGED BY THE L&B GROUP A DALLAS INSTITUTIONAL INVESTMENT ADVISER L&B GROUP A UNIT OF BOSTONBASED UNITED ASSET MANAGEMENT CORP WILL MANAGE THE MALL FOR THE PENSION FUND WHICH AN L&B SPOKESMAN WOULDN'T IDENTIFY THE FIVEYEAROLD MALL ON THE CITY'S RIVER WALK TOURIST ATTRACTION IS ABOUT 95 LEASED THE L&B SPOKESMAN SAID YOUNGSTOWN OHIOBASED DEBARTOLO CORP OWNED BY EDWARD J DEBARTOLO SR AND HIS FAMILY WAS HIT HARD BY THE NATIONAL COLLAPSE IN REALESTATE PRICES SOME OF ITS VAST REALESTATE HOLDINGS WERE PUT UP FOR SALE INCLUDING SHOPPING MALLS RACETRACKS AND OFFICE BUILDINGS LAST FALL THE DEVELOPER SIGNED AN ACCORD WITH ITS BANK LENDERS TO DEFER PRINCIPAL PAYMENTS ON AN ESTIMATED 4 BILLION IN DEBT FOR FIVE YEARS IN EXCHANGE THE LENDERS RECEIVED EXTRA COLLATERAL ON NEARLY ALL DEBARTOLO PROPERTIES EXCEPT FOR THE SAN FRANCISCO 49ERS PRO FOOTBALL TEAM 9306010121 930601 MEDICINE FDA TO WEIGH NONPRESCRIPTION NAPROSYN SALES BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL A CHUNK OF THE 27 BILLION CONSUMER ANALGESIC MARKET IS AT STAKE TODAY AS ADVISORY COMMITTEES OF THE FOOD AND DRUG ADMINISTRATION HEAR AN APPLICATION TO MARKET AN OVERTHECOUNTER VERSION OF THE PAIN RELIEVER NAPROSYN A JOINT VENTURE BY PROCTER & GAMBLE CO AND SYNTEX CORP HAS APPLIED TO MAKE AND MARKET NAPROSYN THE NATION'S TOPSELLING PRESCRIPTION NONSTERIDAL ANTIINFLAMMATORY PAIN RELIEVER USED PRIMARILY TO TREAT ARTHRITIS SYMPTOMS IF APPROVED BY THE FDA NAPROSYN WOULD BE THE FIRST OVERTHECOUNTER PAIN RELIEVER CONTAINING A NEW ANALGESIC INGREDIENT SINCE IBUPROFEN RECEIVED FDA APPROVAL IN 1984 HOWEVER IT WILL FACE INTENSE COMPETITION FROM MAKERS OF RIVAL PAIN RELIEVERS WHICH HAVE ALREADY BOOSTED SPENDING ON ADVERTISING AND PROMOTION IN ANTICIPATION OF NAPROSYN'S RELEASE TODAY'S OPEN HEARING BEFORE A JOINT MEETING OF THE FDA'S OVERTHECOUNTER DRUG AND ARTHRITIS ADVISORY COMMITTEES IN BETHESDA MD COULD DISCLOSE NEW DETAILS ABOUT THE PRODUCT INCLUDING THE PROPOSED DOSAGE LEVEL SYNTEX WILL PRESENT THE RESULTS OF CLINICAL TRIALS WHICH HAVE PRODUCED DATA ON EFFECTIVENESS AND SAFETY BASED ON VARIOUS DOSAGE LEVELS IN A CLOSED MEETING TOMORROW THE COMMITTEE WILL EXAMINE LABELING AND OTHER MATTERS RELATED TO HOW THE JOINT VENTURE WOULD PITCH NAPROSYN TO MASS MARKETS SAYS A SPOKESWOMAN FOR SYNTEX BASED IN PALO ALTO CALIF FDA APPROVAL OF AN OVERTHECOUNTER VERSION OF NAPROSYN COULD COME BY YEAR'S END FOLLOWING A RECOMMENDATION BY THE ADVISORY COMMITTEE NEXT WEEK ACCORDING TO INDUSTRY ANALYSTS I FULLY EXPECT THE FDA ADVISORY COMMITTEE WILL BE QUITE HAPPY TO HAVE THIS THING MARKETED BECAUSE THERE'S A LONG HISTORY OF NAPROSYN USE AND THERE'S NO QUESTION THAT THE DRUG IS SAFE SAYS RICHARD VIETOR AN ANALYST WITH MERRILL LYNCH IN NEW YORK PROCTERSYNTEX HEALTH PRODUCTS CO A 5050 JOINT VENTURE FORMED IN 1988 IS ALREADY MOVING AHEAD ON MARKETING PLANS CINCINNATIBASED P&G WHICH ALREADY MARKETS SOME OVERTHECOUNTER DRUGS HAS HIRED NEW YORK AD AGENCY D'ARCY MASIUS BENTON & BOWLES TO HANDLE CONSUMER ADVERTISING AND SYNTEX HAS RETAINED THE SAN FRANCISCOBASED VICOM FCB UNIT OF FOOTE CONE & BELDING TO MANAGE ADVERTISING TO PHYSICIANS ACCORDING TO A SYNTEX SPOKESWOMAN JAMES P KEENEY A BOSTONBASED ANALYST WITH MABON SECURITIES CORP NEW YORK SAYS PROCTERSYNTEX MAY BE GEARING UP TO POSITION NAPROSYN PRIMARILY AS A PAIN RELIEVER FOR SPORTS INJURIES HE SAYS THAT WOULD DISTINGUISH THE PRODUCT FROM IBUPROFEN BRANDS OFTEN PITCHED AS PAIN RELIEVERS FOR ARTHRITIS MENSTRUAL CRAMPS AND MUSCLE ACHES SUCH AS ADVIL MADE BY AMERICAN HOME PRODUCTS CORP AND MOTRIN IB AN UPJOHN CO PRODUCT PROCTERSYNTEX NEEDS SOME KIND OF HOOK BECAUSE ASPIRIN ACETAMINOPHEN AND IBUPROFEN ARE WELLENTRENCHED MR KEENEY SAYS I THINK THAT HOOK MIGHT BE TREATMENT OF SPORTS INJURIES WHICH WOULD REPRESENT A BIG MARKET SYNTEX SPEAKING FOR THE JOINT VENTURE DECLINED TO DISCUSS ITS MARKETING STRATEGY SPURRING THE APPLICATION TO THE FDA IS THE FACT THAT SYNTEX'S PATENT ON NAPROSYN EXPIRES DEC 21 AFTER THAT DATE GENERICPHARMACEUTICAL COMPANIES WILL BE FREE TO MANUFACTURE A PRESCRIPTION DRUG BASED ON THE CORE MOLECULE IN NAPROSYN NAPROXEN SYNTEX WILL SELL NAPROXEN IN BULK TO GENERIC MANUFACTURERS AND CONTINUE MAKING PRESCRIPTION NAPROSYN HOWEVER IF NAPROSYN IS APPROVED AS AN OVERTHECOUNTER DRUG PROCTERSYNTEX WILL HAVE EXCLUSIVE RIGHTS UNDER THE WAXMANHATCH ACT OF 1984 TO MARKET IT AS SUCH FOR THREE YEARS AFTER THAT ANY MANUFACTURER WILL BE ABLE TO PRODUCE AN OVERTHECOUNTER DRUG BASED ON NAPROXEN THEY'LL SPEND AS MUCH MONEY AS NECESSARY TO GET THE PRODUCT ESTABLISHED DURING THAT TIME PERIOD SAYS MR VIETOR OF MERRILL LYNCH THAT'S WHY SYNTEX HAS SAID IT HAS NO EXPECTATIONS FOR THE JOINT VENTURE TO MAKE A PROFIT EARLY ON THE THREEYEAR EDGE HAS PROMPTED MAKERS OF EXISTING OVERTHECOUNTER PAIN RELIEVERS TO INCREASE ADVERTISING SPENDING RECENTLY IN AN ATTEMPT TO BUILD BRAND LOYALTY BEFORE NAPROSYN REACHES STORE SHELVES IT'S FAIR TO SAY THE INDUSTRY KNOWS NAPROSYN IS ON THE WAY IT'S GOING TO HAVE A BIG EFFECT ON THE MARKET SAYS AN UPJOHN SPOKESMAN UPJOHN HAS BOOSTED AD SPENDING FOR MOTRIN THIS YEAR THE SPOKESMAN SAYS AS AN ATTEMPT TO SHORE UP CONSUMER LOYALTY PRIOR TO THE LAUNCH OF NAPROSYN HE ADDS THIS IS THE CASE ACROSSTHEBOARD IN THE ANALGESIC INDUSTRY 9306010120 930601 WHO'S NEWS RJR NABISCO HOLDINGS NAMES STEPHEN WILSON CHIEF FINANCIAL OFFICER NEW YORK RJR NABISCO HOLDINGS CORP NAMED STEPHEN R WILSON 46 YEARS OLD CHIEF FINANCIAL OFFICER AND AN EXECUTIVE VICE PRESIDENT THE APPOINTMENT FOLLOWS KARL VON DER HEYDEN'S RESIGNATION AS COCHAIRMAN AND COCHIEF EXECUTIVE OFFICER UPON THE DESIGNATION LAST THURSDAY OF CHARLES M HARPER AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER EFFECTIVE THIS WEEK MR HARPER JOINS RJR FROM CONAGRA INC WHERE HE WAS CHAIRMAN THE 56YEAROLD MR VON DER HEYDEN'S DUTIES HAD INCLUDED THOSE OF CHIEF FINANCIAL OFFICER MR WILSON HAD BEEN SENIOR VICE PRESIDENT OF CORPORATE DEVELOPMENT SINCE JOINING RJR NABISCO IN 1990 IN THAT POSITION HE WAS RESPONSIBLE FOR THE COMPANY'S ACQUISITION STRATEGY CAPITAL BUDGETING AND STRATEGIC PLANNING RJR NABISCO HOLDINGS IS THE PARENT COMPANY OF RJR NABISCO INC AN INTERNATIONAL FOOD AND TOBACCO PRODUCTS COMPANY 9306010119 930601 LIQUIDITY FUND ENDS ROLE AS AN LP MATCHMAKER BY KAREN SLATER DAMATO STAFF REPORTER OF THE WALL STREET JOURNAL ONE OF THE MOST ACTIVE FIRMS IN THE BUSINESS OF HELPING PEOPLE SELL UNWANTED LIMITED PARTNERSHIP SECURITIES TO OTHER INVESTORS IS TERMINATING ITS MATCHMAKING OPERATIONS LIQUIDITY FUND INVESTMENT CORP SAID IT WILL STOP BRINGING TOGETHER PARTNERSHIP SELLERS AND BUYERS THIS MONTH BECAUSE IT HAS BEEN LOSING MONEY UNDER COMMISSION LIMITS IMPOSED BY THE NATIONAL ASSOCIATION OF SECURITIES DEALERS THE EMERYVILLE CALIF FIRM SAID IT WILL CONTINUE TO OFFER AND MANAGE PRIVATE INVESTMENT POOLS THAT BUY PARTNERSHIP UNITS BUT ITS PRESIDENT BRENT DONALDSON SAID LIQUIDITY FUND COULDN'T AFFORD TO CONTINUE ITS MATCHMAKING OPERATIONS WE SIMPLY CAN NO LONGER JUSTIFY THE DRAIN ON OUR CAPITAL AND STAFF ENERGY BY PURSUING A BUSINESS THAT IS UNABLE TO PROVIDE AN OPPORTUNITY FOR PROFIT MR DONALDSON SAID IN A MAY 27 LETTER TO BROKERAGE FIRMS WITH WHICH LIQUIDITY FUND DOES BUSINESS THE CLOSELY HELD FIRM LOST 1 MILLION LAST YEAR AFTER CUTTING ITS TRANSACTION CHARGES TO A MAXIMUM 5 FROM 10 OR MORE LIQUIDITY FUND MADE THE CUT AFTER BEING CENSURED AND FINED BY THE NASD FOR CHARGING TOO MUCH INVESTORS HAVE PUT MORE THAN 90 BILLION INTO PARTNERSHIPS THAT OWN REAL ESTATE OIL AND GAS PROPERTIES AND OTHER BUSINESS VENTURES MANY OF THEM HAVE PERFORMED POORLY BUT BECAUSE THE SECURITIES WERE NEVER DESIGNED TO BE TRADED AN INFORMAL LOWVOLUME RESALE MARKET THAT INCLUDES LIQUIDITY FUND AND OTHER FIRMS IS THE ONLY AVENUE FOR INVESTORS WHO WANT TO SELL OLDER PARTNERSHIP UNITS OR BUY MORE THE NASD IN A 1991 REPORT BLASTED THE PARTNERSHIP RESALE MARKET FOR PREDATORY PRICING PRACTICES AND OTHER VIOLATIONS OF SECURITIES LAWS IN ADDITION TO ITS ENFORCEMENT ACTION AGAINST LIQUIDITY FUND THE ASSOCIATION THIS YEAR CENSURED AND FINED PARTNERSHIP SECURITIES EXCHANGE INC OF OAKLAND CALIF FOR EXCESSIVE CHARGES OFFICIALS OF THOSE TWO COMPANIES AND OTHER RESALE FIRMS SAY THE NASD'S LONGSTANDING 5 COMMISSION GUIDELINES DON'T LEAVE FIRMS ENOUGH ROOM TO OPERATE PROFITABLY IN THE FRAGMENTED AND PAPERWORKINTENSIVE RESALE MARKET IF A NUMBER OF RESALE FIRMS REDUCE OR END THEIR OPERATIONS THEY WARN INVESTORS COULD FIND IT EVEN HARDER TO UNLOAD OLD PARTNERSHIP SECURITIES IF OTHER FIRMS LEAVE THE MARKET MR DONALDSON OF LIQUIDITY FUND SAID IN AN INTERVIEW THERE WILL CERTAINLY BE LESS LIQUIDITY IN THE MARKET AND AS LIQUIDITY DIMINISHES SO WILL PRICES PARTNERSHIP SECURITIES EXCHANGE KNOWN AS PSX IS CURRENTLY TRYING TO RESTRUCTURE ITS OPERATIONS IN THE WAKE OF THE NASD ACTION THE FIRM HAS APPEALED ITS NASD CENSURE AND FINE TO THE SECURITIES AND EXCHANGE COMMISSION IN THE MEANTIME THE COMPANY'S PRESIDENT RONALD T BAKER SAID THE FIRM WILL SELL ITS NASDREGULATED BROKERAGE UNIT TO THE UNIT'S STAFF HE SAID THE REMAINING ENTITY WILL BUY AND RESELL PARTNERSHIP UNITS FOR ITS OWN PORTFOLIO AS A PRIVATE COMPANY TO AVOID THE NASD'S COMPENSATION LIMITS ANOTHER RESALE FIRM MACKENZIE PATTERSON GROUP OF LAFAYETTE CALIF ENDED ITS NASDREGULATED BROKERAGE OPERATION LATE LAST YEAR TO FOCUS ON OFFERING AND MANAGING PRIVATE INVESTMENT POOLS THE NASD COMPENSATION GUIDELINES SAY THAT CHARGES HIGHER THAN 5 CAN SOMETIMES BE APPROPRIATE FOR SECURITIES TRADES BUT THERE IS MUCH UNCERTAINTY AMONG THE PARTNERSHIP RESALE FIRMS AS TO WHAT EXACTLY WILL BE TOLERATED FOR INSTANCE SOME RESALE FIRM OFFICIALS EXPRESS SURPRISE THAT CHICAGO PARTNERSHIP BOARD INC WHICH SAYS IT IS NOW THE MOST ACTIVE RESALE FIRM CHARGES A SLIDING SCALE OF FEES THAT RANGE AS HIGH AS 975 AS WELL AS A SEPARATE 195 FEE TO AN AFFILIATE TO COVER SPECIFIC COSTS IN PROCESSING EACH SALE CHICAGO PARTNERSHIP BOARD PRESIDENT JAMES FRITH JR MAINTAINS THOSE CHARGES ARE INDEED JUSTIFIABLE ALTHOUGH HE SAYS THE FIRM HAS HAD LOTS OF DISCUSSIONS WITH THE NASD AND HAS BEEN AUDITED BY THE ASSOCIATION NUMEROUS TIMES I BELIEVE WE HAVE A GOOD RELATIONSHIP WITH THE NASD AT THIS POINT MR FRITH SAID BUT THERE ARE A LOT OF OPEN ITEMS I DON'T KNOW WHERE THEY ARE ALL GOING TO COME OUT 9306010118 930601 CREDIT MARKETS FEW EXPECT SHARP MOVE FOR BONDS STABILITY IS PREDICTED IN LONGTERM RATES PENDING JOBLESS DATA BY THOMAS T VOGEL JR STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK FEW MARKET ANALYSTS OR MONEY MANAGERS ARE PREDICTING A SHARP RISE OR FALL IN LONGTERM INTEREST RATES AHEAD OF FRIDAY'S EMPLOYMENT REPORT MANY SAY THE SHARP DROP IN BOND PRICES AT THE END OF LAST WEEK WAS EXAGGERATED BY LIGHT PREHOLIDAY VOLUME AND REFLECTS A PATTERN OF TRADERS TAKING A BETTERSAFETHANSORRY APPROACH TRADERS THINK ABOUT WHAT'S GOING ON IN THE WORLD AND DON'T WANT TO GO HOME FOR THE WEEKEND HOLDING A LOT OF SECURITIES SAYS RICHARD B BERNER CHIEF ECONOMIST AT MELLON BANK SO THEY SHED SOME HOLDINGS DEPRESSING PRICES THAT'S ONE REASON LONGTERM TREASURY BOND PRICES HAVE DROPPED ON THE FINAL DAY OF THE WEEK IN 10 OF THE PAST 13 WEEKS ON FRIDAY THE BENCHMARK 30YEAR TREASURY BOND DROPPED 5/8 POINT OR 625 FOR A BOND WITH 1000 FACE VALUE TO 101 24/32 THE YIELD ROSE TO 698 FROM 693 ON THURSDAY WE'RE IN THE CHURNING SCHOOL AT THE MOMENT SAID PAUL BOLTZ FINANCIAL ECONOMIST AT T ROWE PRICE ASSOCIATES INC A BALTIMOREBASED MUTUAL FUND FIRM WE THINK THE BOND MARKET IS GOING TO CHURN IN A NARROW RANGE AROUND 7 HE SAID BUT WE DON'T THINK YOU CAN GET SUCH A GOOD COMBINATION OF GOOD NEWS THAT WE WILL GO TO NEW LOWS FOR LONGTERM YIELDS THAT SEEMS TOO IMPROBABLE UNCERTAINTY ABOUT THREE THINGS IS KEEPING MANY ANALYSTS FROM MAKING DEFINITIVE PREDICTIONS ABOUT INTEREST RATES ECONOMIC GROWTH INFLATION AND PRESIDENT CLINTON'S ECONOMIC PACKAGE NEWS THAT THE PRESIDENT'S PACKAGE WAS APPROVED BY THE HOUSE OF REPRESENTATIVES CHEERED THE BOND MARKET EARLY FRIDAY BUT WASN'T SUFFICIENT TO OVERCOME THE MARKET'S LOSS OF CONFIDENCE IN THE PRESIDENT IN RECENT WEEKS INVESTORS ARE WAITING ANXIOUSLY TO SEE HOW THE PACKAGE WILL FARE DURING ITS PASSAGE THROUGH THE SENATE ANALYSTS SAY THE TWO OTHER UNCERTAINTIES MAY BE RESOLVED OVER THE NEXT TWO WEEKS AS THE GOVERNMENT RELEASES IMPORTANT DATA ON THE ECONOMY AND INFLATION THIS FRIDAY FOR EXAMPLE THE GOVERNMENT IS SLATED TO REPORT ON EMPLOYMENT DURING MAY NEXT WEEK REPORTS ON CONSUMER AND WHOLESALE PRICES ARE SLATED TO BE RELEASED ACCORDING TO MR BERNER OF MELLON BANK THE INFLATION STATISTICS ARE LIKELY TO BE WATCHED MORE CLOSELY BY THE BOND MARKET THAN THE EMPLOYMENT REPORT MOST OF THE RECENT ECONOMIC DATA HAS BEEN LACKLUSTER SO ECONOMIC GROWTH IS NOT THE FIRST CONCERN OF MOST INVESTORS HE SAID WHAT'S AT THE FOREFRONT ARE THE INFLATION NUMBERS COMING OUT NEXT WEEK THANKS TO INFLATION WORRIES WE COULD GO BACK TO 7 1/4 YIELD ON THE 30YEAR TREASURY BOND AT SOME POINT IN THE NEXT FEW WEEKS SHORTTERM YIELDS HAVE JUMPED SHARPLY IN THE PAST TWO WEEKS THANKS TO SPECULATION AND THEN REPORTS THAT THE FEDERAL RESERVE'S POLICYMAKING COMMITTEE VOTED AT ITS MEETING TWO WEEKS AGO TO FAVOR A BIAS TOWARD HIGHER SHORTTERM INTEREST RATES SINCE MAY 10 FOR EXAMPLE THE YIELD FOR THE TWOYEAR TREASURY NOTE HAS RISEN NEARLY HALF A PERCENTAGE POINT TO 424 AS OF FRIDAY SOME ECONOMISTS ARGUE THAT THIS SHARP MOVE MAY HAVE BEEN A BIT EXAGGERATED SINCE FEW BELIEVE THE FED WILL MOVE TO RAISE SHORTTERM RATES ANY TIME IN THE NEAR FUTURE THEY ALSO POINT OUT THAT THE JUMP MAY HAVE A DAMPING EFFECT ON THE ECONOMY AS BORROWING COSTS RISE FOR BUSINESSES AND EVEN HOMEOWNERS CHOOSING VARIABLE RATE MORTGAGES WHICH ARE PEGGED TO SHORTTERM INTEREST RATES THERE IS NO DOUBT THAT THIS RISE IN SHORTTERM RATES WILL HAVE AN EFFECT ON HOUSING SAID WILLIAM V SULLIVAN DIRECTOR OF MONEY MARKET RESEARCH AT DEAN WITTER REYNOLDS INC MUCH LIKE IT DID IN THE FIRST HALF OF 1992 WHEN RISING SHORTTERM RATES INCREASED THE COST OF MORTGAGE CREDIT AND THE HOUSING MARKET GROUND TO A HALT AND SINCE HOUSING IS AN IMPORTANT COMPONENT IN ECONOMIC GROWTH THE RESULT MAY BE A DOWNWARD PRESSURE ON LONGTERM INTEREST RATES INVESTORS FEAR RAPID ECONOMIC GROWTH BECAUSE IT COULD LEAD TO HIGHER INFLATION WHICH REDUCES THE VALUE OF INVESTMENTS WITH A FIXED RATE OF RETURN INVESTORS SHOULDN'T WORRY TOO MUCH ABOUT RECENT PRICE INCREASES IN THE MARKET FOR PRECIOUS METALS LIKE GOLD SAYS MR SULLIVAN OF DEAN WITTER THE DIRECTION OF INTEREST RATES FOR THE BALANCE OF THIS QUARTER AND INTO THE FALL IS NOT GOING TO BE DETERMINED BY THE TREND IN PRECIOUS METAL PRICES AND COMMODITIES BUT BY THE ONGOING PACE OF ECONOMIC ACTIVITY HE SAYS IF THE ECONOMY DOESN'T SHOW ENOUGH FORWARD MOMENTUM THE HIGHER PRECIOUSMETAL PRICES ARE UNLIKELY TO BE SUSTAINED HE ADDED AND WE'RE UNLIKELY TO SEE THE DEVELOPMENT OF GREATER INFLATIONARY PRESSURES THAT COULD PUSH RATES MUCH HIGHER SOME ANALYSTS ARE MORE NEGATIVE ON THE INTEREST RATE OUTLOOK AS THE ECONOMY STARTS TO PICK UP WE'RE GOING TO START MOVING TO HIGHER INFLATION AND HIGHER LONGTERM INTEREST RATES SAID ANTHONY CHAN SENIOR ECONOMIST AT BARCLAYS DE ZOETE WEDD SECURITIES INC CERTAINLY BY THE END OF THE YEAR I WOULDN'T BE SURPRISED IF RATES WERE IN THE 7 1/4 TO 7 3/4 RANGE HE SAID FRIDAY'S REPORT ON THE GROSS DOMESTIC PRODUCT ILLUSTRATES THAT YOU CAN HAVE SOMEWHAT SLOW ECONOMIC GROWTH WITHOUT IMPROVEMENT IN THE PRICE SITUATION ON FRIDAY THE COMMERCE DEPARTMENT REVISED THE PACE OF GROWTH OF GROSS DOMESTIC PRODUCT IN THE FIRST QUARTER DOWN TO 09 FROM AN ORIGINAL ESTIMATE OF 18 ONE OF THE OPTIMISTS IS MARC A MILES EXECUTIVE VICE PRESIDENT OF HC WAINWRIGHT & CO ECONOMICS INC BOSTON MR MILES SAYS THE RECENT RUNUP IN GOLD PRICES SHOULDN'T RATTLE BOND INVESTORS WHO ARE WORRIED ABOUT GROWING INFLATIONARY PRESSURES GOLD PRICES WOULD NEED TO RISE TO AT LEAST 410 AN OUNCE BEFORE WE COULD TURN BEARISH ON THE BOND MARKET HE SAYS GOLD ENDED FRIDAY AT 38030 AN OUNCE IN THE MEANTIME MR MILES POINTS TO AN EXTRAORDINARILY WIDE INTERESTRATE GAP BETWEEN THREEMONTH TREASURY BILLS AND 30YEAR TREASURY BONDS AS A SIGN THAT LONGTERM RATES STILL HAVE A LONG WAY TO FALL ACCORDING TO MR MILES THE GAP BETWEEN THE TWO HAS AVERAGED BETWEEN ONE AND 15 PERCENTAGE POINTS OVER THE LAST 40 YEARS ON FRIDAY THE GAP STOOD AT 386 PERCENTAGE POINTS WE STILL SEE LONG RATES GOING TO 6 OR 6 1/4 BEFORE THE END OF THE YEAR SAYS MR MILES THERE IS A VERY HIGH PROBABILITY THAT WE HAVEN'T SEEN THE LOW RATE FOR THE YEAR PRICES OF US TREASURY NOTES AND BONDS FINISHED MIXED AFTER AN ABBREVIATED SESSION LONGTERM SECURITIES POSTED SIZABLE LOSSES WHILE SHORTER ISSUES FINISHED LITTLE CHANGED THE US BOND MARKET WAS CLOSED YESTERDAY IN OBSERVANCE OF THE MEMORIAL DAY HOLIDAY TRADERS STRESSED THAT VOLUME WAS THIN AHEAD OF THE WEEKEND AND THE ILLIQUID CONDITIONS PROBABLY EXAGGERATED THE MARKET'S MOVEMENTS THE 10YEAR NOTE DROPPED 3/8 POINT OR 375 FOR A BOND WITH 1000 FACE VALUE TO 100 22/32 FOR A YIELD OF 615 UP FROM 610 THE FIVEYEAR NOTE HOWEVER DROPPED JUST 1/32 TO 99 31/32 TO YIELD 537 UP FROM 536 ON THURSDAY THE BULK OF THE ACTIVITY FRIDAY WAS FROM PLAYERS SQUARING POSITIONS AHEAD OF THE LONG HOLIDAY WEEKEND DEALERS WERE REVERSING TRADES BY SELLING THE LONGTERM END AND BUYING BACK SHORTTERM SECURITIES THAT WAS IN CONTRAST TO RECENT ACTIVITY WHERE THE SHORT END HAD COME UNDER SIGNIFICANT PRESSURE WHILE LONG BONDS HAVE BEEN SLIGHTLY FIRMER AMID FEARS THAT THE FEDERAL RESERVE COULD BE ON ITS WAY TOWARD TIGHTENING CREDIT POLICY INTERNATIONAL BUSINESS MACHINES CORP SEEMED TO HAVE LITTLE TROUBLE ATTRACTING BUYERS FOR ITS FIRST EVER OFFERING OF PREFERRED STOCK IBM THE NATION'S LARGEST COMPUTER COMPANY FLOATED A 44MILLIONSHARE OFFERING OF 25 CUMULATIVE PERPETUAL PREFERRED STOCK THROUGH DEALERS LED BY LEHMAN BROTHERS A DIVISION OF SHEARSON LEHMAN BROTHERS INC A UNIT OF AMERICAN EXPRESS THE 11 BILLION OFFERING UP FROM A PREVIOUSLY PLANNED 750 MILLION IS NONCALLABLE FOR EIGHT YEARS RATED SINGLEA2 BY MOODY'S INVESTORS SERVICE INC AND SINGLEAPLUS BY STANDARD & POOR'S CORP THE PREFERRED YIELDED 75 AT THE LOWER END OF THE EXPECTED RANGE BECAUSE THE PREFERRED SHARES ARE PERPETUAL MEANING THEY CARRY NO MATURITY DATE THE OFFERING WILL GIVE IBM ADDITIONAL FINANCIAL FLEXIBILITY IN THE FUTURE IF IT GETS CAUGHT SHORT OF CASH ANALYSTS SAID SYNDICATE OFFICIALS SAID SMALLINVESTOR DEMAND FOR THE SHARES WAS STRONG ALTHOUGH SOME SHARES WERE STILL AVAILABLE AT A NUMBER OF DEALERS LATE FRIDAY 9306010117 930601 FOOD STAMP ROLLS SWELL TO RECORD 274 MILLION WASHINGTON THE NUMBER OF PEOPLE RECEIVING FOOD STAMPS ROSE TO A RECORD 274 MILLION IN MARCH THE AGRICULTURE DEPARTMENT SAID THE TOTAL A RISE OF 474000 FROM THE PREVIOUS HIGH IN FEBRUARY ILLUSTRATES THE EXTENT OF HUNGER IN AMERICA AND THE NEED FOR IMMEDIATE ACTION SAID ELLEN HAAS ASSISTANT AGRICULTURE SECRETARY FOR FOOD AND CONSUMER SERVICES AGRICULTURE SECRETARY MIKE ESPY HAS SCHEDULED A FORUM ON HUNGER FOR JUNE 17 IN WASHINGTON THE DEPARTMENT SAID THAT PARTICIPATION IN THE FOOD STAMP PROGRAM HAS INCREASED MORE THAN 17 MILLION SINCE MARCH 1992 AND MORE THAN 44 MILLION SINCE MARCH 1991 SATURDAY MARKED THE 32ND ANNIVERSARY OF THE FOOD STAMP PROGRAM 9306010116 930601 PRIMERICA TO REDEEM DEBENTURES NEW YORK PRIMERICA CORP SAID IT WILL REDEEEM ON JULY 2 ALL 137 MILLION PRINCIPAL AMOUNT OF ITS 55 CONVERTIBLE SUBORDINATED DEBENTURES DUE 2002 THE FINANCIAL SERVICES COMPANY SAID THE DEBENTURES WILL BE REDEEMED AT 103269 PER 1000 PRINCIPAL OUTSTANDING BUT HOLDERS COULD ALSO CONVERT EACH 1000 INTO 22472 COMMON SHARES PLUS 10494 IN CASH BASED ON FRIDAY'S CLOSING PRICE OF 46375 FOR PRIMERICA SHARES CONVERSION WOULD YIELD HOLDERS THE BETTER VALUE OF 114708 HOLDERS MAY CONVERT UNTIL THE CLOSE OF BUSINESS JULY 2 9306010115 930601 INTERNATIONAL JAPANESE IN CAMBODIA FAR FROM SAMURAI TROOPS BRING GOODWILL AIR CONDITIONING GOLF BY MARCUS W BRAUCHLI STAFF REPORTER OF THE WALL STREET JOURNAL TAKEO CAMBODIA SGT HIDEKI YAMAZAKI HAS A TOOTHBRUSH OUT AND IS POLISHING THE BULLET CHAMBER OF HIS ASSAULT RIFLE TO THE STRAINS OF A BEETHOVEN PIANO CONCERTO THE SIXTH SGT YAMAZAKI IDENTIFIES IT IT HELPS ME RELAX AND THINK OF HOME IN JAPAN OF COURSE I DON'T LIKE ONLY BEETHOVEN I LIKE MOZART AND CHOPIN TOO NOT EXACTLY IN THE SAMURAI TRADITION SGT YAMAZAKI IS PART OF JAPAN'S FIRST LARGESCALE OVERSEAS MILITARY FORAY SINCE WORLD WAR II TOKYO DETERMINED TO ECLIPSE UGLY MEMORIES PICKED TROOPS FOR THIS UNITED NATIONS MISSION MORE FOR DIPLOMATIC COOL THAN FOR MARTIAL TOUGHNESS MY WORK IS VERY IMPORTANT FOR WORLD PEACE SGT YAMAZAKI AFFIRMS BUT AS A NEW GENERATION OF JAPANESE SOLDIER IS DISCOVERING BEING GLOBALMINDED IN AN IMPOVERISHED WARTORN SOUTHEAST ASIAN LAND HAS MEANT MAKING ADJUSTMENTS LIKE BUILDING A GOLF PRACTICE CAGE JUST INSIDE THIS CAMP'S BARBEDWIRE PERIMETER OR INSTALLING VENDING MACHINES THAT TAKE YEN AND DISPENSE JAPANESE BEVERAGES SUCH AS POCARI SWEAT AN ISOTONIC DRINK AND CALPIS SODA A FERMENTEDMILK PRODUCT THIS IS BETTER THAN WE EXPECTED SAYS SHINJI YAMADA A 28YEAROLD JAPANESE UN OBSERVER AS HE SHAMPOOS BEFORE PLUNGING INTO A HOMESTYLE BATH SCENTED WITH MINERALS BROUGHT FROM A JAPANESE HOTSPRING RESORT IT'S AIRCONDITIONED AND THEY HAVE JAPANESE SNACKS UNLIKE OTHER PLACES IN CAMBODIA AND NOT SO MANY INSECTS ADDS A VISITING HOME AFFAIRS MINISTRY OFFICIAL FROM TOKYO MODESTLY COVERING UP WITH A TOWEL AND DECLINING TO GIVE HIS NAME THE WAYS OF ARRIVISTE JAPAN BEGIN RIGHT AT THE ENTRANCE TO THIS JAPANESE ENGINEERING BATTALION'S NEWLY IMPROVED PATCH OF SCRUFFY CAMBODIAN GRASSLANDS GRANDLY DUBBED CAMP TAKEO A SIGN IN JAPANESESTYLE ENGLISH REPORTS HERE IS JAPN ENGR BN CAMP AND WARNS THAT PICUTURING IS NOT ALLOWED THAT DOESN'T STOP AT LEAST THREE JAPANESE TELEVISION CREWS FROM VIDEOTAPING EVERYTHING THAT'S HAPPENING TODAY AT CAMP TAKEO SUCH AS THE RETURN TO CAMP OF SEVERAL LARGE WHITE WATERTANKER TRUCKS WITH THE LETTERS U AND N PAINTED ON THEIR SIDES DRIVEN BY JAPANESE TROOPS THE JAPANESE GOVERNMENT'S DECISION LAST YEAR TO PARTICIPATE IN UN PEACEKEEPING EFFORTS IN CAMBODIA WHERE THE UN LAST WEEK STAGED THE FIRST MULTIPARTY ELECTIONS IN 21 YEARS WAS A HUGE ISSUE IN JAPAN SCHOLARS DEBATED ITS CONSTITUTIONALITY PACIFISTS FRETTED ABOUT PRECEDENT JOURNALISTS FLOCKED TO THEIR TRAVEL AGENTS JAPAN'S MAJOR TV NETWORKS AND NEWSPAPERS HAVE HAD FULLTIME NEWS BUREAUS IN THIS PROVINCIAL CAPITAL SINCE JAPANESE TROOPS FIRST LANDED IN CAMBODIA LATE LAST YEAR THE UN TRANSITIONAL AUTHORITY IN CAMBODIA ESTIMATES THAT A THIRD OF THE 2200 PRESS CREDENTIALS IT ISSUED WENT TO JAPANESE THIS IS AS BIG AS THE GULF WAR MAYBE MORE SAYS TAKASHI OHNO A CORRESPONDENT FOR ASAHI SHIMBUN WHO MOVED INTO THE HOUSE HIS NEWSPAPER RENTS NEAR TAKEO LAST WEEK HE WOULD HAVE STAYED IN A HOTEL BUT THE NEAREST STRUCTURE TO CALL ITSELF ONE A BLEAK EIGHTROOM PLACE WITH NO AIRCONDITIONING WAS OCCUPIED BY THE YOMIURI SHIMBUN ASAHI'S ARCHRIVAL ASAHI NOW HAS THREE CORRESPONDENTS LIVING IN TAKEO AND SEVEN MORE POSTED AROUND CAMBODIA COVERING THE ACTIVITIES OF THE 75 OR SO JAPANESE CIVILIAN POLICE AND HANDFUL OF POLLWATCHERS WHO ARE ALSO PART OF THE UN'S 22000PERSON OPERATION IN CAMBODIA WHEN A JAPANESE PEACEKEEPER LAST YEAR MARRIED A CAMBODIAN WOMAN HE MET AT A DANCE HALL REPORTERS DELUGED THE CLUB MR OHNO SAYS NOT THAT THERE HAVEN'T BEEN BIGGER STORIES A JAPANESE CIVILIAN POLICEMAN AND ANOTHER JAPANESE UN VOLUNTEER WERE KILLED IN SEPARATE INCIDENTS IN APRIL AND MAY SO INTENSE WAS THE COVERAGE THAT JAPAN'S GOVERNMENT SENT A TOP MINISTER TO PHNOM PENH TO ASK THE UN WITHOUT SUCCESS TO RECALL HIS COUNTRYMEN FROM DANGEROUS AREAS SOME UNARMED JAPANESE POLICEMEN DIDN'T WAIT FOR THE UN'S REPLY 16 ABANDONED THEIR POSTS THAT CAUSES EMBARRASSMENT AMONG THE 600 OR SO TROOPS AT THIS FORTIFIED CAMP WHO ARE MEMBERS OF THE SELFDEFENSE FORCES JAPAN'S ARMY AND CARRY LOADED PISTOLS AND RIFLES I WOULDN'T BE TELLING THE TRUTH IF I AND OTHERS SAID I DON'T WANT TO GO HOME RIGHT NOW SAYS HIDEAKI TAKAHASHI SWEATING AFTER AN AFTERNOON RUN INSIDE THE CAMP PERIMETER BUT THE GOVERNMENT SAYS WE HAVE TO BE HERE SIX MONTHS AND TO GO HOME EARLY WOULD BE A LOSS OF FACE MEANWHILE JAPANESE TELEVISION ON MONDAY REPORTED THAT ALL JAPANESE CIVILIAN POLICE OFFICERS IN CAMBODIA WILL RETURN HOME JUNE 15 ALMOST A MONTH EARLIER THAN SCHEDULED AFTER VOTE COUNTING IN THE GENERAL ELECTION IS COMPLETED WITH 43 OF THE VOTE COUNTED UNOFFICIAL RESULTS SHOWED THE MAJOR OPPOSITION PARTY FUNCINPEC LEADING BY A SLIM MARGIN BUT THE VIOLENCE ESCALATED AS A URUGUAYAN PEACEKEEPER WAS KILLED AND FIVE OTHERS WERE WOUNDED WHEN SUSPECTED KHMER ROUGE GUERRILLAS AMBUSHED THEIR VEHICLES IN EASTERN CAMBODIA THE URUGUAYAN WAS THE 17TH PEACEKEEPER KILLED IN CAMBODIA THIS YEAR MR TAKAHASHI AND OTHERS HERE MOST OF THEM CAREER SOLDIERS SELECTED FOR MATURITY TRADED THE SNOWY WINTER OF HOKKAIDO JAPAN'S COLD NORTHERN ISLAND FOR THIS HOT HUMID ASSIGNMENT TWO MONTHS AGO REPLACING AN EARLIER CONTINGENT THAT ROTATED OUT YOUR SHADOW IS DIRECTLY UNDER YOU HERE MOANS KATSUMI SHINKAI A BEARDED BASSPLAYING SOLDIER REHEARSING DANCIN' HERO WITH THE CAMP BAND THAT'S UNIMAGINABLE IN JAPAN THERE'S LITTLE ENTERTAINMENT MAHJONG VIDEO GAMES AND KARAOKE SINGALONGS ARE THE MAINSTAYS ASIDE FROM OCCASIONAL PARTIES WHEN THE BAND PLAYS BUT THE MOST DIFFICULT PART HE SAYS IS NOT BEING ABLE TO EAT SASHIMI RAW FISH WHICH DOESN'T TRAVEL WELL FORTUNATELY MR SHINKAI'S MAIN JOB IS WORKING IN THE CANTEEN WHERE THERE ARE AMPLE QUANTITIES OF OTHER STAPLES FROM HOME FROM DRIED SQUID AND NOODLES TO SAKE AND JOHNNY WALKER BLACK LABEL SCOTCH EVERYTHING IS PRICED IN YEN AND WRAPPED NEATLY IN BAGS THAT HAVE A HAPPINESS FOR YOUR FAMILY PRINTED ON THEM THE JAPANESE GOVERNMENT HAS TRIED TO MAKE THE EXPERIENCE MORE PALATABLE FOR THE JAPANESE TROOPS TOO TAGGING A 150 BONUS ON TOP OF A 130 A DAY UN STIPEND EVERYONE WHEN THEY CAME HERE THOUGHT THAT WOULD BE GREAT SAYS CAPT MASAMI OGATA WHOSE BUSINESS CARD LIKE MOST SOLDIERS HERE HE CARRIES ONE WITH A UN LOGO IN ONE CORNER AND A JAPANESE FLAG IN THE OTHER IDENTIFIES HIM AS THE CAMP'S JUDICIAL OFFICER BUT AS WE LEARN MORE ABOUT THE JAPANESE TAX SYSTEM OUR HAPPINESS HAS TURNED TO SORROW THE ADDED INCOME HAS PUSHED MOST SOLDIERS HERE FROM THE 10 TAX BRACKET TO 30 9306010114 930601 WHO'S NEWS SOUTHLAND CORP SOUTHLAND CORP DALLAS STEVE KRUMHOLZ 43YEAROLD SENIOR VICE PRESIDENT OF OPERATIONS WAS NAMED EXECUTIVE VICE PRESIDENT AND CHIEF OPERATING OFFICER AS PART OF SEVERAL MANAGEMENT PROMOTIONS TAKING EFFECT TODAY AT THIS OPERATOR OF 7ELEVEN CONVENIENCE STORES JOHN RODGERS 49YEAROLD SENIOR VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER WAS PROMOTED TO EXECUTIVE VICE PRESIDENT AND CHIEF ADMINISTRATIVE OFFICER ROD BREHM 45 WAS NAMED SENIOR VICE PRESIDENT DISTRIBUTION AND FOOD SERVICE A NEW POSITION MR BREHM PREVIOUSLY WAS VICE PRESIDENT MERCHANDISING MIKE ROEMER 44 WAS NAMED SENIOR VICE PRESIDENT MERCHANDISING UP FROM VICE PRESIDENT LINE MANAGEMENT JAMES KEYES 37 WAS NAMED SENIOR VICE PRESIDENT FINANCE MR KEYES PREVIOUSLY HELD THE TITLE OF VICE PRESIDENT PLANNING AND FINANCE 9306010113 930601 TECHNOLOGY MOTOROLA EXPECTS BOOST IN MARKET SHARE FROM ITS NEW MODEM A WALL STREET JOURNAL NEWS ROUNDUP MOTOROLA INC'S CODEX DIVISION SAID A NEW HIGHSPEED MODEM IT PLANS TO BEGIN SELLING IS EXPECTED TO INCREASE MOTOROLA'S NEARLY 30 SHARE OF THE 1 BILLIONAYEAR MARKET FOR SUCH DEVICES THE MODEM WHICH WILL GO ON THE MARKET IN LATE JUNE IS MORE THAN TWICE AS FAST AS THE FASTEST EXISTING MOTOROLA MODEM AND MORE THAN FOUR TIMES AS FAST AS COMPETITORS' MODELS WHEN PROCESSING LARGE AMOUNTS OF COMPLEX DATA MALIK KHAN A MOTOROLA VICE PRESIDENT SAID IN A TELEPHONE INTERVIEW WE THINK THIS PRODUCT WILL NOT ONLY SERVE AN EXISTING MARKET BUT CREATE A NEW MARKET HE SAID MR KHAN DECLINED TO ESTIMATE SALES OF THE DEVICES CODEX IS BASED IN MANSFIELD MASS THE MODEM BASED ON TECHNOLOGY CALLED V FAST AND SYNCHRONOUS DATA COMPRESSION ALLOWS COMPUTERS TO SWAP DATA OVER ORDINARY TELEPHONE LINES AT RATES OF 56 KILOBITS TO 72 KILOBITS PER SECOND WHEN PROCESSING CERTAIN COMPLEX APPLICATIONS SUCH AS THOSE TYPICALLY USED BY INSURANCE COMPANIES ENGINEERS BANKS AND OTHER BIG BUSINESSES MR KHAN SAID THAT MEANS A COMPUTER FOR INSTANCE CAN TRANSMIT AND RECEIVE WHAT WOULD BE AN HOUR OF DATA USING EXISTING MODEMS IN ABOUT 10 MINUTES USING THE NEW MODEM SUCH SPEEDY TRANSMISSION RATES FOR COMPLEX DATA ARE CURRENTLY AVAILABLE BUT REQUIRE SPECIAL TELEPHONE LINES AND EQUIPMENT BY REDUCING THE AMOUNT OF TELEPHONE SERVICE TIME NEEDED USERS WOULD SAVE ON TELEPHONE CHARGES MR KHAN SAID MR KHAN SAID CODEX IS TARGETING CORPORATIONS WITH BRANCH OFFICES THAT NEED TO BE LINKED BY COMPUTER SUCH AS BANKS TRAVEL AGENTS AIRLINES AND INSURANCE COMPANIES THE MODEM WILL COME IN TWO MODELS EACH SELLING FOR 1900 AND 2200 MOTOROLA'S NEW MODEM WILL IMPROVE PERFORMANCE FOR SOME CORPORATE USERS BUT IT'S NOT FOR EVERYONE SAID JAY BATSON AN ANALYST WITH FORRESTER RESEARCH INC THE MODEM HAS TO BE INSTALLED ON BOTH THE SENDING AND RECEIVING END TO BE EFFECTIVE HE SAID CONSEQUENTLY THE NEW MODEM IS BEST SUITED FOR INHOUSE CORPORATE USES AND NOT FOR INDIVIDUALS HE SAID THE NEW MODEM IS FOR USE WITH STANDARD TELEPHONE LINES WHICH ARE BASED ON OLDER ANALOG TECHNOLOGY AND COULD BE SUPERSEDED BY ADVANCES IN THE NEWER DIGITAL TELEPHONE SYSTEMS HE SAID 9306010112 930601 COURT APPROVES EDISTO PLAN DALLAS EDISTO RESOURCES CORP SAID A FEDERAL BANKRUPTCY COURT IN DELAWARE CONFIRMED THE COMPANY'S REORGANIZATION PLAN WHICH WAS FILED LAST FALL EDISTO WHICH PREVIOUSLY RECEIVED APPROVAL FROM THE EQUITY HOLDERS AND EACH DEBTOR CLASS EXPECTS THE PLAN TO BECOME EFFECTIVE AS EARLY AS LATE THIS MONTH 9306010111 930601 SOUTHSIDE BANCSHARES' DEFENSE ST LOUIS SOUTHSIDE BANCSHARES CORP SAID IT ADOPTED A STOCK RIGHTS PLAN DESIGNED TO DISCOURAGE A POTENTIAL HOSTILE TAKEOVER OF THE BANKING COMPANY SOUTHSIDE SAID THE PLAN CALLS FOR SHAREHOLDERS AS OF JUNE 15 TO RECEIVE ONE RIGHT FOR EACH SHARE OUTSTANDING OF COMMON STOCK THE RIGHTS ENTITLE SHAREHOLDERS TO RECEIVE SOUTHSIDE COMMON SHARES HAVING A VALUE OF TWICE THE RIGHTS' EXERCISE PRICE IF A HOSTILE BIDDER ACQUIRES 25 OR MORE OF SOUTHSIDE COMMON STOCK 9306010110 930601 VANUATU VISITORS SEE ORIGINS OF BUNGEE ARE SORT OF DARWINIAN ISLANDERS JUMP FROM TOWERS TETHERED TO STRONG VINES THEY HAVE FOR 1500 YEARS BY JAMES P STERBA STAFF REPORTER OF THE WALL STREET JOURNAL WALI VANUATU PRECARIOUSLY PERCHED ATOP A RICKETY 80FOOT TOWER OF STICKS LASHED TOGETHER WITH VINES REGINALD BEBE PLAYS FOR TIME AS VILLAGERS CHANT AND DANCE BELOW RAIN AND WINDS GUST ACROSS THE HILLTOP CLEARING IN DENSE JUNGLE THE EYES OF 23 TOURISTS IN VARYING STATES OF AWE LOCK ON THE LITHE NEARLY NAKED FIGURE AS HE WAITS FOR BALANCE CALM AND COURAGE TENSE MINUTES PASS FINALLY HE RAISES HIS ARMS TOWARD THE HEAVENS LOOKS UP CLAPS THREE TIMES AND JUMPS JUNGLE VINES TIED TO THE TOWER AND TO HIS ANKLES STRING OUT AS HE FALLS AS THE ONLOOKERS WINCE THE VINES GROW TAUT AND CATCH HIM HIS HEAD JUST INCHES FROM A CRUSHING COLLISION WITH EARTH IT IS NOT UNFAIR TO SAY AFTER WATCHING MR BEBE AND THE 13 MEN AND BOYS WHO PRECEDED HIM OFF THE TOWER THAT MODERN BUNGEE JUMPERS ARE WIMPS RELATIVELY SPEAKING IT IS SAFE TO SAY THAT ON THE SOUTHERN END OF PENTECOST ISLAND WHERE THESE LAND DIVERS HAVE JUMPED FOR SOME 1500 YEARS AND DO SO ANNUALLY ON SATURDAYS IN APRIL AND MAY THE ANCIENT FORCES OF RITUAL AND CUSTOM HAVE SUCCESSFULLY FENDED OFF THE 20THCENTURY FORCES OF LITIGATION INSURANCE AND GOVERNMENT REGULATION UNLIKE WESTERNERS WHO APED THE CONCEPT AND MINIMIZED THE RISK JUMPERS HERE DON'T HAVE ELASTIC CORDS TO BREAK THEIR FALL FROM LEAPS OFF CONSTRUCTION CRANES BRIDGES AND HOTAIR BALLOONS THEY EMPLOY NO ENGINEERING STUDIES STRESS METERS OR GFORCE COMPUTATIONS THEY USE NO WATER SAFETY NETS OR CUSHIONS BELOW JUST FRESHLY TURNED EARTH ON A SLOPE ONLY NATURAL BRANCHES AND FIBERS ARE USED TO BUILD THE TOWER THE MEN JUMP FROM EACH JUMPER SELECTS HIS OWN VINES AND BUILDS HIS OWN PLATFORM ON THE TOWER THE PLATFORM IS DESIGNED TO COLLAPSE WHEN THE FALLING DIVER'S VINES ARE PULLED TIGHT BY HIS WEIGHT THUS HELPING TO BREAK THE FALL APRIL AND MAY SAYS MR BEBE ARE THE MONTHS FOR JUMPING BECAUSE THAT'S WHEN THE VINES OR LIANAS ARE FULL OF SAP AND ARE SPRINGY NOT BRITTLE THIS PARTICULAR MORNING THE VINES OF JUMPER NO 5 AREN'T QUITE STRONG ENOUGH THEY SNAP AT HIS ANKLES AND HIS HEAD THUDS INTO THE EARTH ALIVE BUT IN PAIN HE SPENDS SOME TIME IN A DAZED STATE CRANING HIS NECK PULLING AT HIS FUZZY HAIR DO YOU HAVE ANY SPORTS IN AMERICA THAT PEOPLE COME FROM ALL OVER THE WORLD TO SEE MR BEBE A 22YEAROLD HIGHSCHOOL GRADUATE ASKS NONCHALANTLY AFTER HIS SUCCESSFUL JUMP FROM THE HIGHEST POINT ON THE TOWER HE HAS CHANGED OUT OF HIS PENIS SHEATH AND INTO SHORTS AND A FOSTER'S BEER TSHIRT SPORT HOWEVER ISN'T QUITE THE RIGHT WORD FOR BUNGEE JUMPING AS IT IS PRACTICED HERE OFFICIALLY PENTECOST'S LAND DIVERS DON'T LEAP FOR THRILLS THEY LEAP FOR YAMS A SUCCESSFUL JUMP BY WHICH IS MEANT A DOZEN OR SO LEAPS IN WHICH NOBODY IS KILLED OR CRIPPLED ENSURES A BOUNTIFUL YAM HARVEST WHY MODERN CHEMICAL FERTILIZER DIDN'T ENTER THE PICTURE ISN'T CLEAR NOT THAT PEOPLE HERE ARE ALL THAT BACKWARD INDEED THEY ARE WELL AHEAD OF THEIR NEIGHBORS ON THE ISLAND OF MALAKULA WHERE THE LAST REPORT OF CANNIBALISM THAT ANYONE TAKES SERIOUSLY OCCURRED IN 1972 PENTECOST WHICH IS 37 MILES LONG AND NEARLY EIGHT MILES WIDE IS ONE OF REPUBLIC OF VANUATU'S 80 ISLANDS DENSELY JUNGLED AND PRIMITIVE VANUATU WAS CALLED THE NEW HEBRIDES UNTIL INDEPENDENCE IN 1980 AFTER CENTURIES OF COLONIALISM AND MISSIONARY ACTIVITY TODAY VANUATU'S GOVERNMENT IS IN PORT VILA ON EFATE THE COUNTRY'S DEVELOPED ISLAND IT HAS ROADS ELECTRICITY TOURIST RESORTS AND CASINOS VANUATU ENCOURAGES PRESERVATION OF PRECOLONIAL CUSTOMS TRADITIONS AND RITUALS AMONG ITS 150000 PEOPLE ABANDONING THE TRAPPINGS OF WESTERN CIVILIZATION SUCH AS CLOTHING AND RETURNING TO THE CUSTOMS OF LIFE IN THE BUSH AREN'T DISCOURAGED DRINKING KAVA A PEPPERROOT DERIVATIVE WITH NOVACAINLIKE EFFECTS THAT PRECEDED COLONIAL ALCOHOL IS ENCOURAGED SOME OF THE LAND DIVERS FORTIFY THEMSELVES WITH KAVA BEFORE THEY CLIMB THE TOWER THE DIVERS WHO START JUMPING FROM LOWER LEVELS WHEN THEY ARE AS YOUNG AS SEVEN LEAP ALSO TO PROVE THEIR MANHOOD THAT IS SOMEWHAT PARADOXICAL SINCE LAND DIVING LOCALLY CALLED NAGOL WAS STARTED AT BUNLAP VILLAGE BY A WOMAN HER NAME HAS BEEN FORGOTTEN BUT LEGEND HAS IT THAT SHE WAS THE ABUSED WIFE OF A MAN NAMED TAMALIE SHE RAN DEEP INTO THE JUNGLE AND CLIMBED A TREE WHEN TAMALIE FOUND HER SHE THREATENED TO JUMP TO PROVE HIS LOVE HE SAID HE WOULD LEAP TOO SHE JUMPED HAVING SECRETLY TIED VINES TO HER ANKLES HE JUMPED KNOWING NOTHING ABOUT THE VINES THE VINES SAVED HER HE OF COURSE DIED WOMEN REENACTED THE JUMP FOR YEARS AFTER THAT THEN MALE VILLAGE ELDERS DECIDED THIS FEMALE RITE WAS BAD FOR THE SPIRIT OF TAMALIE AND RULED THAT HENCEFORTH MEN WOULD BE DOING ALL THE JUMPING ANOTHER INCONGRUITY PENTECOST'S LAND DIVERS PROFESS TO HAVE A BETTER SAFETY RECORD OVER CENTURIES THAN DOES THE FIVEYEAROLD BUNGEE JUMPING CRAZE IN THE INDUSTRIALIZED WEST PENTECOSTIANS SWEAR THAT NOBODY DIED AFTER TAMALIE UNTIL 1974 WHEN A SPECIAL OFFSEASON LEAP WAS ARRANGED AS AN EXHIBITION FOR A VISITING QUEEN ELIZABETH A JUMPER'S VINES SNAPPED AND HE PLUNGED TO HIS DEATH RIGHT THERE IN FRONT OF HER ROYAL HIGHNESS THE JUMPING EVENT CONTINUED BY CONTRAST THREE BUNGEEJUMPING DEATHS IN NORTH AMERICA IN 1991 AND 1992 ENGENDERED LEGISLATIVE AND REGULATORY CONNIPTIONS AND TEMPORARY BANS IN SEVERAL STATES IN HER BOOK BUNGEE JUMPING FOR FUN 'N PROFIT PUBLISHED TWO YEARS AGO JUMPER NANCY FRASE CREDITS THE OXFORD UNIVERSITY DANGEROUS SPORTS CLUB WITH TAKING THE PENTECOST CONCEPT AND RUNNING WITH IT ON APRIL FOOLS' DAY 1979 SOME OF ITS MEMBERS BUNGEED OFF THE 245FOOTHIGH CHIFTON BRIDGE IN BRISTOL THEN DRESSED IN TUXEDOS AND TOP HATS THEY JUMPED OFF THE GOLDEN GATE BRIDGE IN SAN FRANCISCO THAT MADE THE TV SHOW THAT'S INCREDIBLE AND BUNGEE JUMPING WAS ON ITS WAY TO BECOMING A FAD IT DIDN'T GO COMMERCIAL IN EUROPE MS FRASE SAYS UNTIL 1986 IN 1988 HENRY VAN ASCH AND AJ HACKETT WHO HAD BUNGEED OFF THE EIFFEL TOWER A YEAR EARLIER SET UP A JUMP SITE FOR TOURISTS OVER THE KAWARAU RIVER NEAR QUEENSTOWN NEW ZEALAND THEN TWO ENGINEERS FROM PALO ALTO CALIF JOHN AND PETER KOCKELMANOPENED BUNGEE ADVENTURES IN THE US OTHER COMPANIES QUICKLY SPROUTED BUNGEE MASTERS INC AIR BOINGO BUNGEE FEVER JUMP INC ADRENALIN ADVENTURES EAST PT BUNGEE INC DRASTIC ELASTIC BUNGEE JUMP INC TO NAME A FEW TWO BUNGEERELATED DEATHS LAST SUMMER IN MICHIGAN AND ONTARIO HOWEVER SORT OF TOOK THE WIND OUT OF OUR SAILS SAYS CASEY DALE PRESIDENT OF THE NORTH AMERICAN BUNGEE ASSOCIATION NABA AND OPERATOR OF BUNGEE MASTERS'S TWO JUMP SITES SINCE THEN HE SAYS THE NUMBER OF COMMERCIAL JUMP SITES HAS DROPPED TO FEWER THAN 100 FROM ABOUT TWICE THAT NUMBER STILL HE ESTIMATES IT'S A 70 MILLIONAYEAR INDUSTRY WORLDWIDE NABA ESTIMATES THAT 15 MILLION BUNGEE JUMPS WERE MADE IN NORTH AMERICA LAST YEAR IN BUNGEE JUMPING PEOPLE PAY FROM 50 TO 75 TO JUMP IN LAND DIVING TOURISTSPECTATORS PAY 7500 VATU WHICH IS MONE BLONG VANUATU IN BISLAMA THE OFFICIAL PIDGINENGLISH LANGUAGE OF THE NATION THAT IS ABOUT 65 JUST TO WATCH AND TAKE PICTURES TOURISTS AREN'T ALLOWED TO JUMP NOT THAT THERE ARE ALL THAT MANY REQUESTS 9306010109 930601 ADP SEEKS TO REASSURE FIRMS HOLDERS THAT PROXYHANDLING WOES ARE OVER BY ANNE NEWMAN STAFF REPORTER OF THE WALL STREET JOURNAL ROSELAND NJ AUTOMATIC DATA PROCESSING CORP IS SCRAMBLING TO REASSURE OTHER COMPANIES AND THEIR SHAREHOLDERS THAT IT WON'T REPEAT THIS YEAR'S CHAOTIC HANDLING OF PROXY MAILINGS AND VOTINGS SOME LARGE SHAREHOLDERS AND CORPORATIONS HOWEVER REMAIN UNCONVINCED THAT ADP HAS FIXED THE PROBLEMS THAT LED THIS YEAR TO LATE MAILINGS TO SHAREHOLDERS AND MISCOUNTED AND EVEN LOST SHAREHOLDER VOTES ADP'S PROXYSERVICE UNIT HAS SCHEDULED MEETINGS ON THURSDAY WITH THE COUNCIL OF INSTITUTIONAL INVESTORS WHOSE MEMBERS CONTROL 500 BILLION IN ASSETS AND JUNE 17 WITH THE AMERICAN SOCIETY OF CORPORATE SECRETARIES THERE ARE A LOT OF QUESTIONS ABOUT WHETHER THE VOTES THAT ACTUALLY EMERGED WERE ACCURATE SAID MICHAEL GOODMAN A SPOKESMAN FOR THE SOCIETY IN ADDITION THE SECURITIES AND EXCHANGE COMMISSION AND A CONGRESSIONAL SUBCOMMITTEE ARE PROBING THE FOULUPS CONCERNED ABOUT WHETHER CORPORATE ELECTIONS ARE ACCURATELY TALLIED SOME FORMER EMPLOYEES ALSO FEAR THAT ADP WHICH ACQUIRED ITS ONLY SIGNIFICANT COMPETITOR LAST YEAR FOR THE PROXYCOUNTING BUSINESS HAS STILL TO FIGURE OUT HOW TO MERGE SOFTWARE SYSTEMS THAT HANDLE VOTING FOR LARGE SHAREHOLDERS WITH THOSE FOR SMALLER INVESTORS ADP IS PROMISING INDEPENDENT INSPECTIONS OF ITS MAIL AND ELECTRONIC VOTEHANDLING SYSTEMS BEFORE NEXT YEAR'S PROXY SEASON JOSH S WESTON CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID IN AN INTERVIEW HE ADDED THAT ALL MISCOUNTED VOTES HAVE SINCE BEEN CORRECTED AND THE ERRORS DIDN'T CHANGE THE OUTCOME OF ANY ELECTIONS MR WESTON SAID THE COMPANY IS SPENDING HUNDREDS OF THOUSANDS OF DOLLARS ON EXTRA MANPOWER AND EQUIPMENT TO FIX THE PROBLEMS WHILE THE EXPENSES PROBABLY WILL CUT PROFIT OF THE PROXY SERVICE UNIT THEY WON'T MATERIALLY AFFECT ADP'S PROFIT WHICH WAS 2562 MILLION IN 1992 PROXY SERVICES ACCOUNT FOR ONLY 6 TO 7 OF ADP'S 19 BILLION IN ANNUAL REVENUE MR WESTON BLAMES THE DISORDER ON SEVERAL EVENTS INCLUDING A JAN 1 MOVE TO A NEW FACILITY A MERGER WITH ANOTHER PROXY SERVICE PERSONNEL CHANGES A BUG IN A NEW OPTICALSCANNING SYSTEM FOR COUNTING HUGE NUMBERS OF BALLOTS FLAWED IMPROVEMENTS TO ITS ELECTRONIC VOTING SYSTEM A THOROUGHLY UNFORESEEN JUMP OF NEARLY 20 IN MATERIALS REQUIRED BY SHAREHOLDERS AND 11THHOUR VOTING BY LARGE INSTITUTIONS SOME OF THE PROBLEMS AROSE AFTER ADP LAST YEAR ACQUIRED ITS ONLY MAJOR COMPETITOR IN PROXY SERVICES INDEPENDENT ELECTION CORP OF AMERICA IECA SOFTWARE WAS DEVELOPED PRIMARILY FOR BANKS WHICH HOLD SECURITIES FOR LARGE SHAREHOLDERS WHILE ADP SOFTWARE IS LARGELY AIMED AT BROKERAGE FIRMS HOLDING SECURITIES FOR INDIVIDUALS AND SMALLER ACCOUNTS AT THE PEAK OF THE PROXY SEASON IT APPEARS ADP'S SYSTEM WAS UNABLE TO TALLY ACCURATELY THE BANK VOTES ON BEHALF OF BIG SHAREHOLDERS AND EITHER FAILED TO COUNT VOTES OR SOMETIMES CAST VOTES IN FAVOR OF MANAGEMENT THAT ACTUALLY HAD BEEN CAST IN OPPOSITION ARTHUR F WEINBACH ADP EXECUTIVE VICE PRESIDENT INSISTS THAT ADP TOOK THE BEST OF BOTH SYSTEMS AND TRIED TO PUT THEM TOGETHER IN HINDSIGHT HOWEVER HE CONCEDES THAT THE MERGER OF THE TWO SYSTEMS IN DECEMBER WAS CLOSER TO THE PROXY SEASON THAN IT SHOULD HAVE BEEN 9306010108 930601 MOVIES POOR RESULTS KICK OFF SEASON FOR MOVIEGOING BY THOMAS R KING STAFF REPORTER OF THE WALL STREET JOURNAL HOLLYWOOD'S SUMMER MOVIE SEASON GOT OFF TO A LACKLUSTER START AT THE BOX OFFICE OVER THE MEMORIAL DAY WEEKEND ESTIMATES INDICATE THAT THE TOP 10 FILMS TOOK IN ABOUT 12 LESS THAN THE LEADERS DURING THE SAME PERIOD A YEAR AGO THE DROP WAS VIEWED AS A TROUBLING SIGN BY HOLLYWOOD EXECUTIVES MANY OF WHOM HAVE PUBLICLY STATED THAT THIS SUMMER IN WHICH AN UNUSUALLY LARGE NUMBER OF FILMS WILL BE RELEASED HAS THE POTENTIAL TO SET A SEASONAL RECORD NONETHELESS THE MAJORITY OF EARLY SUMMER PICTURES OPENED TO UNENTHUSIASTIC REVIEWS AND MOVIEGOERS HAVEN'T LINED UP AS THEY DID LAST YEAR OVER THE FOUR DAYS THE TOP 10 PICTURES GROSSED ABOUT 76 MILLION DOWN FROM THE RECORD 861 MILLION CHARTED LAST MEMORIAL DAY WEEKEND THE HOLIDAY IN 1992 WAS LED BY OUTSTANDING GROSSES FROM SEQUELS TO ACTION MOVIES LETHAL WEAPON AND ALIEN TRISTAR'S NO 1 HIT TRISTAR PICTURES' CLIFFHANGER WHICH FEATURES SYLVESTER STALLONE AS A MOUNTAIN CLIMBER TOOK THE TOP SPOT THIS WEEKEND WITH A FOURDAY GROSS OF ABOUT 207 MILLION THE STUDIO SAYS HOWEVER A NUMBER OF INDUSTRY EXECUTIVES WHO BET THE GROSS WOULD BE EVEN HIGHER NOW SAY IT APPEARS UNLIKELY THAT THE FILM WILL HAVE THE LEGS TO CLIMB TO THE MAGIC 100 MILLION BLOCKBUSTER LEVEL EVEN SO TRISTAR CHAIRMAN MIKE MEDAVOY DISAGREES PREDICTING THE PICTURE WILL GROSS 100 MILLIONPLUS IN THE US PEOPLE HAD WRITTEN OFF STALLONE HE SAYS BUT STALLONE WENT BACK TO THE KIND OF STUFF HE DOES BEST I THINK THIS MOVIE IS GOING BE TO A HUGE WORLDWIDE HIT INDUSTRY EXECUTIVES SAY TRISTAR A UNIT OF SONY CORP PUT UP AS MUCH AS 50 OF THE PRODUCTION COSTS OF CLIFFHANGER A MOVIE THAT INCURRED SERIOUS COST OVERRUNS DURING FILMING IN THE ITALIAN ALPS TRISTAR EXECUTIVES PRIVATELY SAY THE FILM COST IN THE 60 MILLION RANGE OTHERS HOWEVER INSIST COSTS BALLOONED TO AS MUCH AS 75 MILLION MR MEDAVOY SAYS THE PICTURE WHICH HAD ITS MAIN FINANCING FROM CAROLCO PICTURES INC AND ITS AFFILIATES WILL BE SOLIDLY PROFITABLE IN ADDITION TO ALL DOMESTIC RIGHTS ON THE FILM TRISTAR ALSO OWNS THEATRICAL DISTRIBUTION RIGHTS IN ABOUT 40 OF THE WORLD INCLUDING SUCH LUCRATIVE TERRITORIES AS FRANCE SPAIN AND GERMANY WARNER BROS' COMEDY MADE IN AMERICA WHICH STARS WHOOPI GOLDBERG AND TED DANSON TOOK IN ABOUT 12 MILLION TO WIN THE NO 2 SPOT FOR THE WEEKEND AND IN A SIGN THAT CROWDPLEASING FILMS THAT HAVE PLAYED FOR A COUPLE OF WEEKS CAN STILL COMPETE WITH NEW RELEASES WARNER'S DAVE LANDED IN THE NO 3 SPOT WITH A TAKE OF MORE THAN 85 MILLION WARNER BROS IS A UNIT OF TIME WARNER INC BUT HOT SHOTS PART DEUX FROM NEWS CORP'S FOX STUDIO A FILM THAT TOOK IN JUST 82 MILLION IN ITS SECOND WEEKEND DOESN'T APPEAR TO BE THE HIT THE STUDIO NEEDS THE SEQUEL NOW SEEMS HEADED FOR A TOTAL GROSS OF ONLY 45 MILLION DOWN FROM THE 68 MILLION THAT THE ORIGINAL FILM GROSSED IN 1991 WALT DISNEY CO'S SUPER MARIO BROS TOOK IN ABOUT 8 MILLION FOR THE FIFTH SPOT ITS PRODUCERS ORIGINALLY HOPED THE FILM WOULD HAVE BROAD APPEAL BUT ITS MAIN AUDIENCE HAS THUS FAR BEEN LIMITED TO YOUNGSTERS AND PARAMOUNT PICTURES' SHARON STONE THRILLER SLIVER WHICH RECEIVED POOR REVIEWS POSTED A DRAMATIC DROP AT THE BOX OFFICE FOLLOWING ITS BIG OPENING A WEEK AGO THE MOVIE FROM THE PARAMOUNT COMMUNICATIONS INC STUDIO GROSSED JUST 73 MILLION OVER THE FOUR DAYS 9306010107 930601 MARKETING & MEDIA AFFILIATED PUBLICATIONS SAID TO REJECT TIMES MERGER BOSTON AFFILIATED PUBLICATIONS INC PUBLISHER OF THE BOSTON GLOBE HAS DISCUSSED A MERGER WITH NEW YORK TIMES CO PEOPLE FAMILIAR WITH THE NEGOTIATIONS SAID THEY ADDED THAT AN AGREEMENT HASN'T BEEN REACHED THESE PEOPLE SAID THAT AFFILIATED HAS ALREADY REJECTED AN INFORMAL TIMES OFFER WHICH ONE PERSON VALUED AT 1550 A SHARE OR 109 BILLION BUT THIS COULDN'T BE DIRECTLY CONFIRMED OFFICIALS OF BOTH PUBLISHERS HAVE REPEATEDLY DECLINED TO COMMENT SPECULATION ABOUT THE FUTURE OF NEW ENGLAND'S LARGEST NEWSPAPER INTENSIFIED OVER THE WEEKEND AS TIME MAGAZINE IN A THREESENTENCE ITEM SAID THE TWO COMPANIES ENTERED SERIOUS DISCUSSIONS IN JANUARY AFFILIATED CLASS A SHARES CLOSED UNCHANGED FRIDAY AT 12375 IN NEW YORK STOCK EXCHANGE TRADING THE STOCK HAS FLUCTUATED FOR MORE THAN A YEAR AS SUCCESSIVE TAKEOVER RUMORS ROLLED THROUGH THE MARKET OWNERSHIP OF THE GLOBE IS CONTROLLED BY TWO FAMILY TRUSTS THAT DON'T EXPIRE UNTIL 1996 AT THE RECENT ANNUAL MEETING OF SHAREHOLDERS AFFILIATED CHAIRMAN WILLIAM O TAYLOR SAID INFORMAL TALKS TO EXTEND THE TRUSTS HAD BEGUN ADDING NOTHING HAS BEEN DECIDED AND PEOPLE ARE THINKING LONG AND HARD ABOUT THAT THE RUMORED COMBINATION WOULD JOIN THE GLOBE WITH THE NEWSPAPER THAT MOST STAFFERS VIEW AS ITS MOST IMPORTANT COMPETITOR SILENCING ONE OF THE NATION'S FEW REMAINING INDEPENDENT EDITORIAL VOICES 9306010106 930601 CLINTON READIES ECONOMY PLAN'S SENATE STRATEGY MANY PRINCIPALS EXPRESS OPTIMISM ON PACKAGE MUCH HAGGLING LOOMS BY JACKIE CALMES STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON HAVING NARROWLY WON HOUSE PASSAGE OF HIS ECONOMIC PLAN ONLY AFTER PROMISING FURTHER CHANGES NOW TURNS TO THE TICKLISH JOB OF NEGOTIATING THOSE CHANGES AND OTHERS WITH THE SENATE IN INTERVIEWS OVER THE WEEKEND PRINCIPALS RANGING FROM WHITE HOUSE OFFICIALS TO REBEL SENATE DEMOCRAT DAVID BOREN EXPRESSED OPTIMISM ABOUT THE BILL'S CHANCES GIVEN THE PROSPECT OF COMPROMISES BUT AS THE OKLAHOMA DEMOCRAT SAID IN AN APPEARANCE SUNDAY ON CBSTV'S FACE THE NATION THE DEVIL IS IN THE DETAILS MR CLINTON SPOKE FRIDAY WITH BOTH SEN BOREN WHO IS PROPOSING TO KILL THE ENERGY TAX AND SUBSTITUTE DEEPER CUTS IN MEDICARE AND SOCIAL SECURITY AND FINANCE COMMITTEE CHAIRMAN DANIEL MOYNIHAN D NY WHO MUST SHEPHERD THE DEFICITREDUCTION PACKAGE IN THE SENATE SEN MOYNIHAN IN INTERVIEWS WITH THE NEW YORK TIMES SAID HE AND THE ADMINISTRATION WERE WORKING TO SCALE BACK THE ENERGY TAX TO BLUNT ITS IMPACT ON SOME INDUSTRIES AND TO CUT 30 BILLION MORE FROM SPENDING MOSTLY FROM MEDICARE OVER FIVE YEARS MR CLINTON'S PROPOSED TAX ON ENERGY CONSUMPTION AS MEASURED BY BRITISH THERMAL UNITS WOULD RAISE MORE THAN 70 BILLION OVER FIVE YEARS AND ABOUT 22 BILLION A YEAR AFTER THE TAX WAS PHASED IN VARIOUS OFFICIALS IN THE ADMINISTRATION AND CONGRESS HAVE SUGGESTED THE ENERGY TAX MIGHT BE CUT AS MUCH AS ONETHIRD NEXT TO THE PROPOSED TAX INCREASES ON THE RICHEST AMERICANS THE ENERGY TAX IS THE BIGGEST REVENUERAISER IN MR CLINTON'S ROUGHLY 500 BILLION DEFICITREDUCTION PLAN THE SENATE WON'T HAVE TO FIND A DOLLAR OF SPENDING CUTS FOR EVERY DOLLAR IT TRIMS FROM THE ENERGY TAX TREASURY SECRETARY LLOYD BENTSEN HAS SAID THAT IF THE TAX IS REDUCED THE ADMINISTRATION COULD CUT BACK ITS PROPOSED EXPANSION OF THE EARNEDINCOME TAX CREDIT A GOVERNMENT PROGRAM OF CASH BONUSES TO THE WORKING POOR AS WELL AS PROPOSED INCREASES FOR THE FOOD STAMP AND HEATING ASSISTANCE PROGRAMS BY EXPANDING THOSE PROGRAMS MR CLINTON HAD HOPED TO OFFSET THE COSTS OF THE ENERGY TAX ON THE POOR DESPITE THE LINK HOWEVER A DEEP CUT IN THE PROPOSED TAX CREDIT FOR POOR WORKERS COULD BACKFIRE AND ALIENATE LIBERALS EVEN AS MR CLINTON LABORS TO ASSUAGE PARTY CONSERVATIVES SEN MOYNIHAN HAS SAID FLATLY THE FINANCE COMMITTEE WON'T LOOK TO SOCIAL SECURITY BENEFITS TO RAISE FURTHER MONEY FOR DEFICIT REDUCTION BEYOND THE ADMINISTRATION'S PROVISION TO INCREASE THE TAXABLE PORTION OF BENEFITS FOR UPPERINCOME RECIPIENTS AS A RESULT THE COMMITTEE MUST SQUEEZE MEDICARE HARDER THAN MR CLINTON ALREADY HAS PROPOSED SQUEEZING MEDICARE HOWEVER IS LIKELY TO PROVOKE OPPOSITION FROM THE FORMIDABLE SENIOR CITIZENS' LOBBY IT WOULD ALSO COMPLICATE THINGS FOR MR CLINTON'S COMING HEALTHCARE PLAN SECRETARY BENTSEN PREVIOUSLY HAS CRITICIZED SEN BOREN'S MEDICARE SPENDINGCUT PROPOSALS COMPLAINING THAT THE ADMINISTRATION HAD HOPED TO USE SUCH MEDICARE SAVINGS TO HELP FINANCE THE PRESIDENT'S AMBITIOUS PLAN TO OFFER HEALTH INSURANCE TO THOSE WHO LACK IT AS SEN BOREN PROPOSED FOR EXAMPLE ONE POTENTIAL CHANGE WOULD INCREASE THE PREMIUMS AND DEDUCTIBLES PAID BY HIGHINCOME MEDICARE BENEFICIARIES THE PLAN WOULD AFFECT SENIOR CITIZENS WITH ADJUSTED GROSS INCOMES OF 75000 A YEAR OR MORE SEN BOREN SAID THE SUGGESTIONS THAT THE CLINTON ADMINISTRATION WOULD AGREE TO FURTHER CUTS AND FEWER TAXES IMPROVE THE CHANCES BY ABOUT 100 THAT WE'RE GOING TO BE ABLE TO WORK OUT AN AGREEMENT HE WAS QUICK TO CLAIM SOME SUCCESS IN POINTING THE PRESIDENT IN THAT DIRECTION BUT THE SENATOR ALSO GAVE GROUND AFTER A WEEK IN WHICH HIS FELLOW DEMOCRATS ACCUSED HIM OF CAVING IN TO PRESSURE IN HIS OIL STATE AND RENEGING ON A COMMITMENT TO BACK MR CLINTON DROPPING HIS DEMAND THAT THE ENERGY TAX BE KILLED SEN BOREN SAID A GENERAL MOVE TOWARD GREATER CUTS AND FEWER TAXES WAS EVEN MORE IMPORTANT TO ME PERHAPS THAN THE BTU TAX WHITE HOUSE BUDGET DIRECTOR LEON PANETTA ALSO APPEARING ON FACE THE NATION SAID THAT MR BOREN'S STATEMENTS WERE VERY ENCOURAGING BUT THAT THE ADMINISTRATION WOULD CONTINUE TO INSIST ON A BROAD ENERGY TAX IN KEEPING WITH LASTMINUTE AGREEMENTS REACHED TO SECURE SOME HOUSE DEMOCRATS' VOTES MR CLINTON MUST CRAFT A PROVISION EXEMPTING MANY US MANUFACTURERS FROM THE COSTS OF THE ENERGY TAX BUT THE POSSIBILITIES OF SOME KIND OF TAX REBATE ALONG WITH A PROVISION ALREADY IN THE BILL TO EXTEND THE ENERGY TAX TO SOME ENERGYINTENSIVE IMPORTS ARE DRAWING FIRE FROM FOREIGN TRADING PARTNERS WHO CLAIM THE BILL VIOLATES WORLD FREETRADE AGREEMENTS THE TAX REBATE IS ALSO LIKELY TO BE IMPORTANT TO WINNING LOUISIANA SEN JOHN BREAUX SEN BREAUX LIKE SEN BOREN HAS CRITICAL LEVERAGE BECAUSE OF HIS SEAT ON THE FINANCE COMMITTEE WHICH IS CLOSELY SPLIT 119 BETWEEN DEMOCRATS AND REPUBLICANS DEMOCRATS ON THE TAX PANEL ARE EXPECTED TO START WORK AS EARLY AS NEXT WEEK WHEN CONGRESS RETURNS FROM A WEEKLONG MEMORIAL DAY RECESS SEN BOREN'S DEFECTION HAD PARTY LEADERS LOOKING TO BYPASS THE PANEL SO THAT A BILL COULD GET TO THE SENATE FLOOR OTHER ASSURANCES THE PRESIDENT GAVE TO RECALCITRANT DEMOCRATS ABOUT THE BTU TAX BEFORE THURSDAY'S 219213 HOUSE VOTE WERE MORE GENERAL MR CLINTON IS EXPECTED TO AGREE TO FULL OR PARTIAL EXEMPTIONS FOR VARIOUS INDUSTRIES BEYOND THOSE ADDED IN THE HOUSE FOR AGRICULTURE ALUMINUM AND CHLORINE MANUFACTURING BUT IN DOING SO HE RISKS CONCEDING TOO MUCH SEEMING TO BUCKLE TO SPECIAL INTERESTS AND LOSING REVENUES IN THE PROCESS DEMOCRATS' POSTVOTE CLAIMS TO CONCESSIONS FROM THE PRESIDENT HOWEVER VAGUE WERE IMPORTANT POLITICAL COVER BACK HOME THIS IS A GAME OF MEMBERS LOOKING FOR SOME WAY OF JUSTIFYING THEIR VOTES SAID A LEADING DEMOCRATIC REPRESENTATIVE OKLAHOMA REP DAVID MCCURDY WHO ONLY HOURS BEFORE THE ACTUAL VOTE WAS EXHORTING OTHER CONSERVATIVES TO VOTE NO JOINED WITH SEVERAL LAWMAKERS IN VOTING YES AFTER RECEIVING THE PRESIDENT'S PERSONAL PROMISE OF ENERGY TAX CHANGES SOUTHERN LAWMAKERS CITED A PROMISE TO ADDRESS THEIR PROBLEM OF LOWCOST PEANUT BUTTER AND PEANUT PASTE IMPORTS OHIO REP ERIC FINGERHUT TOUTED A LETTER FROM MR CLINTON ASSURING THE FRESHMAN DEMOCRAT THAT YOU WILL PLAY A KEY ROLE AS THE BILL TAKES ITS FINAL SHAPE TEN SUBCOMMITTEE CHAIRMEN VOTED AGAINST THE BILL EVEN AFTER SENIOR DEMOCRATS SIGNED A LETTER SUGGESTING DISCIPLINE FOR RENEGADES WITH PRIVILEGED POSITIONS BUT OTHER BALKY SUBCOMMITTEE CHAIRMEN IN THE END VOTED FOR THE BILL AMONG THEM REPS BOB CARR OF MICHIGAN AND WILLIAM HUGHES OF NEW JERSEY AND MR MCCURDY 9306010105 930601 ALUMINUM CONCERNS IN TALKS WITH UNIONS CLEVELAND THE NATION'S TWO BIGGEST ALUMINUM MAKERS ALUMINUM CO OF AMERICA AND REYNOLDS METALS CO CONTINUED TALKS LAST NIGHT AIMED AT REACHING NEW LABOR ACCORDS WHICH WERE SET TO EXPIRE AT MIDNIGHT THE CONTRACTS WITH THE UNITED STEELWORKERS AND THE ALUMINUM BRICK AND GLASS WORKERS COVER MORE THAN 11000 WORKERS AT 12 ALCOA PLANTS IN THE US AND MORE THAN 5000 EMPLOYEES AT 16 REYNOLDS PLANTS IN THE US THE UNIONS WANT JOB SECURITY AND THE COMPANIES ARE SEEKING REDUCTIONS IN HEALTHCARE COSTS THE TWO COMPANIES AND THE UNIONS AGREED TO A CONTRACT EXTENSION A YEAR AGO BUT THEN FAILED TO REACH A NEW ACCORD BY THEIR TARGET OF LAST OCT 2 THEY BEGAN TALKS AGAIN EARLIER THIS MONTH BOTH UNIONS HAVE AUTHORIZED A STRIKE IF THE TALKS COLLAPSE BUT ANALYSTS HAVE SAID THEY DON'T EXPECT A STRIKE BECAUSE OF OVERSUPPLY IN THE WORLDWIDE ALUMINUM MARKET 9306010104 930601 POLITICS & POLICY BEVY OF HOUSE REPUBLICANS DEMOCRATS REJECTED CLINTON'S PLAN AND ALTERNATIVE BY JOHN HARWOOD STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON DAVID MINGE RAN FOR CONGRESS LAST YEAR BECAUSE HE SAW WASHINGTON DUCKING THE NATION'S PROBLEMS AND I DECIDED TO DO SOMETHING ABOUT IT THE MINNESOTA DEMOCRAT GOT A CHANCE LAST WEEK THE HOUSE TOOK UP PRESIDENT CLINTON'S ECONOMIC PLAN WHICH WOULD CUT THE DEFICIT SOME 337 BILLION OVER FIVE YEARS THROUGH A COMBINATION OF TAX INCREASES AND SPENDING CUTS FOR LAWMAKERS WHO COULDN'T ABIDE HIGHER TAXES THERE WAS AN ALTERNATIVE REPUBLICAN REP JOHN KASICH'S PROPOSAL TO SLICE THE DEFICIT 352 BILLION THROUGH SPENDING CUTS ALONE MR MINGE'S RESPONSE HE VOTED AGAINST BOTH OF THEM HE WASN'T ALONE FOR ALL THE TALK IN BOTH PARTIES ABOUT ENDING GRIDLOCK AND TACKLING BIG NATIONAL ISSUES 77 MEMBERS OF CONGRESS VOTED AGAINST BOTH ALTERNATIVES LAST WEEK THE RANKS OF THE NO CAUCUS NUMBERED 37 DEMOCRATS AND 40 REPUBLICANS INCLUDING 18 MEMBERS OF THE MUCHTOUTED FRESHMAN CLASS THAT CAPITALIZED LAST YEAR ON POPULAR DISGUST WITH THE FAILURES OF CONGRESS EACH OF THEM OF COURSE HAD HIS OR HER OWN REASONS FOR OPPOSING BOTH PACKAGES AND THE RULES FOR HOUSE CONSIDERATION DON'T PERMIT INDIVIDUAL LAWMAKERS TO OFFER PROPOSALS TAILORMADE TO THEIR PREFERENCES STILL THE DEMOCRATIC AND REPUBLICAN PLANS THAT REACHED THE FLOOR WERE BROADLY REPRESENTATIVE OF THEIR PARTY'S APPROACH TO THE BUDGET AND ECONOMIC POLICY MR MINGE SAYS HE OPPOSED THE GOP PLAN BECAUSE HE DOESN'T THINK GOVERNMENT CAN BALANCE ITS BUDGET WITHOUT TAX INCREASES AT THE SAME TIME HE SAYS HE WANTED STIFFER MEDICINE THAN HIS OWN PARTY'S PROPOSAL WHICH INCLUDED NOT ENOUGH CUTS TO ACCOMPANY VERY SUBSTANTIAL TAX INCREASES MY VOTE SENT A MESSAGE SAYS THE FIRSTTERM LAWMAKER I RECOGNIZE THAT VOTING AGAINST SOMETHING IS NOT A POSITIVE MESSAGE BUT THAT DOESN'T MEAN IT'S NO MESSAGE AT ALL OF COURSE VOTING NO ON A PLAN LIKE MR CLINTON'S IS ALSO POLITICALLY SAFER THAN VOTING YES PARTICULARLY FOR SOMEONE LIKE MR MINGE WHO WON HIS SEAT BY JUST 575 VOTES OUT OF MORE THAN 260000 CAST AS A MEMBER OF MR CLINTON'S PARTY HOWEVER THE MINNESOTA DEMOCRAT IS LIKELY TO BE HELD ACCOUNTABLE FOR THE ADMINISTRATION'S PERFORMANCE ANYWAY WHEN HE FACES REELECTION IN 1994 THAT'S NOT A PROBLEM FOR REPUBLICANS LIKE FIRSTTERM REP CHARLES CANADY OF FLORIDA AND IT'S NO SURPRISE THAT MR CANADY A ONETIME DEMOCRAT WHO SWITCHED PARTIES BECAUSE HIS CONSERVATIVE PHILOSOPHY BETTER SUITED THE GOP TRIED TO BLOCK MR CLINTON'S TAXHEAVY BUDGET PACKAGE OHIO REP KASICH'S PROPOSAL WAS CRAFTED WITH JUST SUCH FRUGAL REPUBLICANS IN MIND IN HIS CAMPAIGN MR CANADY BACKED A PRESIDENTIAL LINEITEM VETO AND A BALANCEDBUDGET CONSTITUTIONAL AMENDMENT HE PLEDGED TO HELP FORCE THE HARD DECISIONS THAT CONGRESS WASN'T MAKING BUT IN THE END MR CANADY DECIDED THE GOP PROPOSAL WAS TOO HARD A SPOKESMAN SAYS THE FLORIDA REPUBLICAN OBJECTED AMONG OTHER THINGS TO MR KASICH'S PROPOSAL TO DEFER COSTOFLIVING ADJUSTMENTS FOR MILITARY RETIREES UNTIL AGE 62 THE GOP PLAN ALSO INCLUDED 72 BILLION IN MEDICARE CUTS RISKY BUSINESS FOR SOMEONE LIKE MR CANADY WHO WON WITH JUST 52 OF THE VOTE HERE IS A LIST OF MEMBERS OF CONGRESS WHO OPPOSED BOTH ECONOMIC PLANS LAST WEEK 9306010103 930601 CANADA STEEL OUTPUT ROSE 36 LAST WEEK OTTAWA CANADIAN PRIMARY STEEL PRODUCTION TOTALED 284526 METRIC TONS IN THE WEEK ENDED MAY 22 A 39 DECLINE FROM 295969 TONS THE PREVIOUS WEEK BUT A 36 INCREASE FROM 274649 TONS A YEAR EARLIER ACCORDING TO STATISTICS CANADA A GOVERNMENT AGENCY A METRIC TON EQUALS 220462 POUNDS FOR THE YEAR TO DATE PRODUCTION TOTALED 5625274 TONS A 41 INCREASE FROM 5405419 TONS A YEAR EARLIER 9306010102 930601 LETTERS TO THE EDITOR TO INCITE A PASSION FOR LEARNING PROF JACKSON TOBY'S COMMENTARY ON NATIONAL SERVICE COLLEGE STUDENTS ARE A POOR INVESTMENT EDITORIAL PAGE MAY 4 MAKES ONE GOOD POINT BUT BLURS IT WITH ASIDES ABOUT THE INADEQUACIES OF HIS OWN STUDENTS AND OF THE INVETERATE STUDENT NOW OCCUPYING THE OVAL OFFICE COLLEGES AND SCHOOLS AT ALL LEVELS DO WASTE TIME MONEY AND GOOD WILL BY ENROLLING STUDENTS WHO HAVE NO PASSION FOR LEARNING THE PROFESSOR'S THREE OR FOUR ANECDOTES BRING US NEWS OF STUDENTS OF HIS WHO DID NOT LEARN BECAUSE THEY DID NOT STUDY I AM SURE HE HAS OTHER TALES OF STUDENTS WHO WORKED HARD AND LEARNED A LOT BUT HIS QUARREL IS NOT WITH THE PRESIDENT OR WITH THE NEW PROGRAMS OF NATIONAL SERVICE HIS GRIEVANCES MIGHT BE BETTER PLACED WITH COLLEGE ADMISSIONS OFFICES WHICH SELECT THE STUDENTS WE TEACH PROF TOBY SHOULD TELL US WHAT EXPERIENCES OR INCENTIVES BETTER THAN A YEAR OR TWO OF COMMUNITY SERVICE WOULD MAKE STUDENTS WANT TO LEARN EVER SINCE THE VETERANS CAME BACK FROM WORLD WAR II COLLEGE TEACHERS HAVE REPORTED THAT NOTHING MATURES STUDENTS AND WHETS THEIR APPETITES FOR LEARNING AS MUCH AS A RIGOROUS TERM IN SERVICE TO THE NATION I DISAGREE WITH PROF TOBY'S CYNICAL VIEW OF TODAY'S COLLEGE STUDENTS IN WHICH HE CLAIMS THAT PRESIDENT CLINTON'S NATIONAL SERVICE PLAN IN OFFERING COLLEGE ATTENDANCE AS AN INCENTIVE ONLY AUGMENTS THE FLOOD OF COLLEGE STUDENTS FOR WHOM THE ACQUISITION OF KNOWLEDGE IS NOT THE PRIMARY INTEREST IN MY ACADEMIC CAREER I HAVE OBSERVED QUITE THE OPPOSITE FOR EACH DISINTERESTED STUDENT MR TOBY CITES TO MAKE HIS POINT I COULD LIST DOZENS OF CURIOUS INVOLVED AND DEDICATED STUDENTS TO REFUTE IT THESE ARE STUDENTS WHO RECOGNIZE THE VALUE OF EDUCATION BOTH FOR ITS OWN SAKE AND FOR ITS MORE PRACTICAL APPLICATIONS I HAVE FOUND THAT THE STUDENTS ON MY LIST ARE ASKING IMPORTANT AND THOUGHTFUL QUESTIONS ABOUT THEIR LIVES AND ABOUT OUR WORLD IN THEIR ACADEMIC WORK EXTRACURRICULAR PURSUITS AND COMMITMENT TO COMMUNITY SERVICE THEY MAKE US PROUD I'D LIKE TO INTRODUCE MR TOBY TO THE STUDENTS ON MY LIST PERHAPS HE WOULD SEE THAT CASTING AN ENTIRE GENERATION OF STUDENTS IN THIS UNFAVORABLE LIGHT IS SHORTSIGHTED AND UNFAIR A PHRASE IN PROF TOBY'S ARTICLE HIT HOME WITH SPECIAL FORCE IN A WAY THAT PROVIDES A DRAMATIC EXAMPLE OF WHAT HAS HAPPENED TO HIGHER EDUCATION IN MY LIFETIME PROF TOBY TEACHES AT RUTGERS UNIVERSITY NOW A STATE MULTIVERSITY I WAS GRADUATED FROM RUTGERS UNIVERSITY IN 1932 WHEN IT WAS STILL A RELATIVELY SMALL PREDOMINANTLY PRIVATE UNIVERSITY THE PHRASE THAT STRUCK ME WAS MANY STUDENTS ARRIVE 10 OR 15 MINUTES LATE TO CLASS IN MY FOUR YEARS AT RUTGERS I RECEIVED ONE GRADE OF C I RECEIVED THAT BECAUSE I FREQUENTLY ARRIVED A FEW MINUTES LATE TO A COURSE IN EUROPEAN ECONOMIC HISTORY WHICH MET AT 130 PM IN A BUILDING AS FAR AS ANY ON THE CAMPUS FROM THE RESTAURANT WHERE I WAITED TABLES TO EARN MY MEALS WHEN I EXPLAINED WHY I WAS LATE THE PROFESSOR SAID YOU ARE AT RUTGERS TO GET AN EDUCATION NOT TO WAIT ON TABLES AND REFUSED TO ALTER THE GRADE I MAY ADD THAT IT WAS AN EXCELLENT COURSE DO YOU GUYS INTERWEAVE SUBTLE THEMES ON PURPOSE OR ARE YOU JUST LUCKY I CUT OUT MR TOBY'S ARTICLE TO SHARE WITH MY TWO COLLEGE KIDS TO STIR THINGS UP AT THE DINNER TABLE I ALSO STUDIED KAREN ELLIOTT HOUSE'S SAMEPAGE ESSAY WONDERING WHERE THE PRESIDENT IS COMING FROM WITH RESPECT TO THE ADVISABILITY OF A BALKANS INTERVENTION I ENJOYED HER POINTS REGARDING THOSE COLLEGE DAYS WHEN BRIGHT MINDS CAN EXPERIMENT WITH GOOD IDEAS WITHOUT TAKING THE RESPONSIBILITY FOR THE CONSEQUENCES I RECALLED WORDSWORTH'S VERSE THE CHILD IS FATHER OF THE MAN A CATCHY LITTLE PHRASE MY '60S ENGLISH TEACHER HAD US EXPLORE AT LENGTH MS HOUSE BRINGS IT HOME AGAIN TO FIGURE SOMEONE OUT TODAY LOOK BACK AT THOSE FORMATIVE YEARS OF EXPERIENCE OR INEXPERIENCE I ALSO REMEMBERED SOCRATES' GREAT CONCLUSION WHEN HE SUPPOSED HE WAS CONSIDERED WISE BECAUSE HE WAS SMART ENOUGH TO KNOW WHEN HE DIDN'T KNOW IT IS A GOOD GUIDE TO ENCOURAGE CONSULTATION WITH EXPERIENCED ADVISERS YIELDING TO WHIMS OF SCHOOLBOY EXPERIMENTATION OR INPUT FROM A YOUNGISH STAFF BACK IN THE '60S WE LIBERALARTS STUDENTS USED TO GROUSE ABOUT WHETHER ACADEMIC STUFF WAS RELEVANT IT'S FUN WHEN IT IS TO INTERJECT INTELLECTUAL STIMULUS AT THE DINNER TABLE IS ONE OF MY LIFE'S GREAT CHALLENGES TO TEST THE RELEVANCY OF THE KIDS' BOOKLEARNING AGAINST REALWORLD CURRENT EVENTS USUALLY THEY JUST HUMOR ME ALTHOUGH OCCASIONALLY A SPARK IS IGNITED I'LL BE ABLE TO TRULY MEASURE THE IMPACT OF THESE DISCUSSIONS ONCE I HEAR THE GRANDCHILDREN GETTING COUNSELED BY MOM AND DAD ONE DRAWBACK THOUGH TO NOT OFFEND MY DAUGHTERS' PC SENSITIVITIES I'VE HAD TO TAKE REVISIONIST POETIC LICENSE AND TRY THE CHILD IS PARENT TO THE ADULT I SUSPECT THIS WON'T STICK 9306010101 930601 CANADA GDP POSTS 07 MARCH RISE BIGGEST IN YEARS BY JOHN URQUHART STAFF REPORTER OF THE WALL STREET JOURNAL OTTAWA CANADA'S GROSS DOMESTIC PRODUCT IN MARCH RECORDED ITS BIGGEST MONTHLY ADVANCE IN TWO YEARS RISING 07 FROM FEBRUARY STATISTICS CANADA A GOVERNMENT AGENCY SAID THE GROWTH CONTINUED TO BE FUELED BY EXPORTS TO THE US WHICH IN THE FIRST THREE MONTHS OF THIS YEAR WERE UP 23 FROM A YEAR EARLIER CANADIAN MANUFACTURERS ARE NOW TAKING A LARGER SHARE OF THE US MARKET BECAUSE OF THE IMPRESSIVE PRODUCTIVITY GAINS THEY HAVE ACHIEVED THROUGH CORPORATE RESTRUCTURING SAID EARL SWEET ROYAL BANK OF CANADA'S ASSISTANT CHIEF ECONOMIST ALL OF THE RESTRUCTURING THAT HAS TAKEN PLACE ISN'T FOR NAUGHT MANUFACTURERS INCREASED PRODUCTION BY AN EXCEPTIONALLY LARGE 19 IN MARCH FROM FEBRUARY MANUFACTURING OUTPUT IN CANADA HAS OUTSTRIPPED THAT OF EVERY OTHER MAJOR INDUSTRIAL COUNTRY IN THE PAST YEAR ACCORDING TO THE PARISBASED ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT IN MARCH MANUFACTURING ACCOUNTED FOR 18 OF CANADA'S GROSS DOMESTIC PRODUCT THE TOTAL VALUE OF THE COUNTRY'S OUTPUT OF GOODS AND SERVICES STATISTICS CANADA SAID AUTO MAKERS BOOSTED PRODUCTION BY 33 IN MARCH FROM FEBRUARY OTHER SUBSTANTIAL OUTPUT INCREASES INCLUDED ELECTRICAL PRODUCTS UP 28 PAPER AND ALLIED PRODUCTS UP 26 AND CHEMICALS UP 25 FINANCE MINISTER DON MAZANKOWSKI SAID THE GDP DATA INDICATED THAT THE ECONOMY GREW AT AN ANNUAL RATE OF ABOUT 4 IN THE FIRST QUARTER UP FROM A 1992 FOURTHQUARTER RATE OF 35 MR MAZANKOWSKI SAID WE HAVE INCREASED OUR PRODUCTIVITY AND COMPETITIVENESS ENORMOUSLY BUT HE SAID IT MAY TAKE SOME TIME BEFORE THE RISE IN ECONOMIC ACTIVITY REDUCES SIGNIFICANTLY THE COUNTRY'S UNEMPLOYMENT RATE CURRENTLY 114 OF THE WORK FORCE MANUFACTURING EMPLOYMENT INCREASED BY 28000 IN APRIL THE SIXTH CONSECUTIVE MONTHLY GAIN BUT TOTAL CANADIAN EMPLOYMENT DECLINED 43000 OR 03 IN APRIL BECAUSE OF SUBSTANTIAL CUTBACKS IN SOME OTHER MAJOR INDUSTRIES INCLUDING RETAIL MERCHANDISING EMPLOYMENT FIGURES FOR MAY ARE TO BE ANNOUNCED FRIDAY SOME ECONOMISTS WARNED THAT THE ECONOMIC ADVANCE WILL BE SLOWED BY TAX INCREASES THAT WERE RECENTLY ANNOUNCED BY PROVINCIAL GOVERNMENTS MOST OF THE PROVINCIAL TAX INCREASES WILL HIT THE CONSUMER POCKET BOOK IN THE SECOND HALF OF THE YEAR SAID MIKE MCCRACKEN PRESIDENT OF THE OTTAWA ECONOMIC CONSULTING COMPANY INFORMETRICA LTD WITH CONSUMER DEMAND STILL LANGUISHING HE SAID IT REMAINS TO BE SEEN WHETHER EXPORTS BY MANUFACTURERS AND OTHER INDUSTRIES WILL BE SUFFICIENT TO KEEP THE ECONOMY GROWING AT A PACE OF MORE THAN 3 CONSUMER SPENDING IN CANADA COMPRISES MORE THAN 60 OF DEMAND FOR GOODS AND SERVICES 9306010100 930601 INTERNATIONAL RUSSIA TALLIES ITS GOLD RESERVES MOSCOW RUSSIA HAS GOLD RESERVES OF 3335 METRIC TONS STATE OFFICIALS SAID ON FRIDAY PRODUCTION FOR 1992 WAS 146 METRIC TONS DOWN ABOUT 7 FROM THE PREVIOUS YEAR AND WILL REMAIN LEVEL THROUGHOUT 1993 SAID YEVGENY BYCHKOV HEAD OF THE STATE COMMITTEE FOR PRECIOUS METALS WHILE PRODUCTION FELL RESERVES GREW 18 METRIC TONS IN THE FIRST QUARTER OF THIS YEAR BECAUSE OF A DECLINE IN EXPORTS THE COMMITTEE'S CHIEF ACCOUNTANT NINA VYSKEBENTSEVA ADDED MR BYCHKOV SAID RUSSIA EXPORTED 98 METRIC TONS IN 1992 AND WASN'T EXPECTED TO INCREASE THAT FIGURE THIS YEAR 9306010099 930601 POLITICS & POLICY WHAT DO YOU CALL US TAKING CUT OF PAYROLLS IT'S ON THE TIPS OF HEALTH REFORMERS' TONGUES BY HILARY STOUT STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON IT IS THE TAX THAT DARES NOT SPEAK ITS NAME TO ADMINISTRATION OFFICIALS GRAPPLING WITH THE CRITICAL ISSUE OF HOW TO PAY FOR UNIVERSAL HEALTH COVERAGE IT IS A WAGEDBASE PREMIUM BUT TO ECONOMISTS AND MOST EVERYONE ELSE IT IS A PAYROLL TAX AND THE DECISION ON WHETHER TO IMPOSE IT COULD HAVE HUGE RAMIFICATIONS ON THE ECONOMICS AND POLITICS OF HEALTHCARE REFORM THE LEVY WOULD REPLACE THE HEALTH INSURANCE PREMIUMS MANY FIRMS CURRENTLY PAY ON BEHALF OF THEIR WORKERS WITH A TAX DIVIDED BETWEEN EMPLOYER AND EMPLOYEE SIMILAR TO THE TAXES THAT NOW FUND SOCIAL SECURITY AND MEDICARE FOR THOSE FIRMS THAT DON'T NOW CONTRIBUTE TO THEIR EMPLOYEES' HEALTH COVERAGE IT WOULD BE A NEW EXPENSE PRESIDENT CLINTON DROPPED THE IDEA DURING HIS CAMPAIGN BUT IS NOW LEANING TOWARD IT AND A DECISION COULD BE MADE AS SOON AS THIS WEEK THE PROPOSAL HAS SPLIT THE PRESIDENT'S ADVISERS WITH FIRST LADY HILLARY RODHAM CLINTON AND IRA MAGAZINER THE HEAD OF HER HEALTHCARE TEAM TALKING UP THE IDEA WHILE ECONOMIC AIDES LED BY TREASURY SECRETARY LLOYD BENTSEN ARE DUBIOUS OUTSIDE THE ADMINISTRATION THE PAYROLL TAX HAS STRONG SUPPORT FROM AMONG OTHERS UNIONS WHO SEE IT AS A MORE PROGRESSIVE ALTERNATIVE FOR FINANCING UNIVERSAL HEALTH COVERAGE WE'RE STRONGLY IN SUPPORT OF THE WAGEBASED APPROACH AS OPPOSED TO THE TRADITIONAL PREMIUM STRUCTURE WE BELIEVE IT'S ONE OF THE MOST IMPORTANT THINGS THEY SHOULD DO SAYS ALAN REUTHER LEGISLATIVE DIRECTOR FOR THE UNITED AUTO WORKERS BESIDES MR REUTHER ADDS WITH A PAYROLL TAX WE'D NEGOTIATE FOR THE EMPLOYER TO PAY THE ENTIRE AMOUNT FOR EXAMPLE IF THE LEVY WAS 7 FOR THE EMPLOYER AND 2 FOR THE EMPLOYEE A LEADING FORMULA UNDER CONSIDERATION UNIONS WOULD BARGAIN TO MAKE THE EMPLOYER PAY THE ENTIRE 9 MANY BUSINESSES ARE NOT ENTHUSED A PAYROLL TAX IS PROBABLY THE WORST OF ALL CHOICES SAYS JOHN MOTLEY A LOBBYIST FOR THE NATIONAL FEDERATION OF INDEPENDENT BUSINESS AMONG OTHER THINGS HE SAYS A HUGE NEW PAYROLL TAX WOULD DISCOURAGE THE CREATION OF PRECISELY THE KIND OF HIGHPAYING JOBS THE ADMINISTRATION SAYS IT WANTS MORE OF AND FOR SMALL BUSINESS ESPECIALLY HE SAYS YOU'VE COME UP WITH A TAX THAT IS MOST DEVASTATING TO YOUR CASH FLOW BECAUSE IT IS NOT BASED ON CASH FLOW MOREOVER A PAYROLL TAX COULD ENTAIL HUGE POLITICAL RISKS FOR MR CLINTON AROUSING WIDESPREAD RESENTMENT AND REINFORCING THE POLITICAL PERCEPTION THAT HE IS A TAXANDSPEND LIBERAL BENT ON BIGGOVERNMENT APPROACHES UNLIKE THE SOCIAL SECURITY AND MEDICARE TAXES THE MONEY FROM A HEALTH LEVY WOULDN'T BE PAID TO THE US TREASURY BUT RATHER TO NEW REGIONAL HEALTH INSURANCE BUYING COOPERATIVES HENCE THE WAGEBASED PREMIUM EUPHEMISM BUT THE PRACTICAL EFFECT WOULD BE A TAX WITH ALL THE BENEFITS AND LIABILITIES THAT A TAX ENTAILS THE CHIEF BENEFIT IS PROGRESSIVITY FIRMS PAYING HIGH WAGES SUCH AS RICH LAW FIRMS AND FORTUNE 500 COMPANIES WOULD CONTRIBUTE MORE THAN FIRMS PAYING LOW WAGES SUCH AS SNACK BARS AND NEIGHBORHOOD LAUNDRIES THE FIRST SEVERAL THOUSAND DOLLARS OF A COMPANY'S PAYROLL AND A WORKER'S SALARY PROBABLY WOULD LIKELY BE EXEMPT FROM THE LEVY AND A CAP WOULD PROBABLY BE PLACED ON THE TOTAL EARNINGS SUBJECT TO THE LEVY OFFICIALS SAY ANOTHER BENEFIT IS THAT IF THE ADMINISTRATION GOES WITH A PAYROLL TAX SOME ADVISERS THINK THE ONLY OTHER MONEY THEY WILL NEED FOR HEALTH CARE REFORM CAN BE RAISED BY INCREASING THE CIGARETTE TAX THE ALTERNATIVE THAT THE PRESIDENT IS CONSIDERING IS SIMPLY REQUIRING BY LAW THAT ALL EMPLOYERS CONTRIBUTE A CERTAIN PERCENTAGE OF THE PREMIUM FOR THE FEDERALLY GUARANTEED BENEFITS PACKAGE THAT SAYS HENRY AARON A BROOKINGS INSTITUTION ECONOMIST IS THE MOST REGRESSIVE METHOD WE HAVE AVAILABLE IT COULD MEAN FOR EXAMPLE THAT INTERNATIONAL BUSINESS MACHINES CORP PAYS 2000 FOR HEALTH BENEFITS FOR A 135000AYEAR EMPLOYEE WHILE JOE'S GAS STATION PAYS 2000 A YEAR FOR A 25000AYEAR WORKER MOREOVER IT WOULD PROBABLY MEAN RAISING OTHER TAXES TO HELP SUBSIDIZE SMALL EMPLOYERS AS WELL AS TO PAY FOR CARE FOR THE UNINSURED TAXES THAT MR CLINTON WOULD HAVE NO CHOICE BUT TO DECRIBE AS SUCH BUT DESPITE THE INTELLECTUAL APPEAL AND THE SUPPORT OF THE CRITICAL LABOR CONSTITUENCY A PAYROLL TAX HAS SOME HUGE DRAWBACKS NOT THE LEAST OF WHICH IS THAT IT IS SUCH A RADICAL CHANGE AFTER ALL A VAST MAJORITY OF AMERICANS ARE ACCUSTOMED TO GETTING THEIR HEALTH COVERAGE THROUGH EMPLOYERPAID PREMIUMS AND MOST ARE QUITE SATISFIED WITH THAT INDEED EVEN MR AARON SAYS THAT WHILE HE ADMIRES THE AIM OF THE PAYROLL TAX IT IS A POLITICAL COMPLICATION THE ADMINISTRATION DOESN'T NEED THEY'VE GOT ENOUGH HEADACHES WITHOUT IT HE SAYS I WOULD STICK I THINK WITH PREMIUM FINANCE AND I SAY THAT AS AN UNASHAMED EGALITARIAN WHO OULD LIKE TO SEE MORE INCOME REDISTRIBUTION IN THE US MOREOVER FOR ALL THE TALK OF FAIRNESS THERE WOULD BE CLEAR WINNERS AND LOSERS UNDER THE PAYROLL TAX IT'S GOING TO CAUSE A LOT OF INCOME REDISTRIBUTION NOT JUST AMONG CLASSES BUT ALSO AMONG REGIONS INDUSTRIES COMPANIES IN PATTERNS THAT MAY NOT MAKE SENSE TO MANY PEOPLE SAYS MR AARON FOR EXAMPLE A STATE LIKE CONNECTICUT WITH A HIGHER WAGE BASE AND A LOWER UNINSURED RATE COULD EFFECTIVELY END UP SUBSIDIZING A STATE LIKE ALABAMA WITH A HIGH RATE OF UNINSURED PEOPLE AND A LOWER WAGE BASE MICROSOFT WOULD END UP SUBSIDIZING SEVEN ELEVEN TO AVOID SUCH COMPLAINTS ABOUT SUBSIDIZATION THE ADMINISTRATION IS ALSO CONSIDERING A SYSTEM OF DIFFERENT PAYROLL TAX RATES FOR DIFFERENT STATES OR EVEN POSSIBLY DIFFERENT REGIONS WITHIN A STATE THE RATE WOULD BE CALCULATED AFTER TAKING INTO ACCOUNT THE WAGE BASE OF THE AREA THE NUMBER OF UNINSURED AND THE COST OF MEDICAL CARE BUT THE VARYING RATES THEMSELVES COULD CAUSE RESENTMENT NOT TO MENTION MAKING WHAT WOULD BE A HUGELY COMPLICATED SYSTEM EVEN MORE COMPLEX FOR BUSINESS PEOPLE PERHAPS THE MOST WORRISOME QUESTION IS WILL IT BE ENOUGH FROM 1982 TO 1992 THE COUNTRY'S WAGE BASE GREW 83 WHILE NATIONAL HEALTH SPENDING JUMPED AT NEARLY TWICE THAT RATE UNLESS THE ADMINISTRATION'S HEALTH PLAN SUCCEEDS IN QUICKLY AND SIGNIFICANTLY REDUCING THE RATE OF INCREASE IN HEALTH COSTS THE PAYROLL TAX RATE MIGHT HAVE TO BE INCREASED YEAR AFTER YEAR TO COVER THE GAP IF THE PAYROLL LEVY IS SET AT 8 HOW LONG WILL IT BE BEFORE IT WILL REACH 12 OR 15 ASKS JOHN GALLES EXECUTIVE VICE PRESIDENT OF NATIONAL SMALL BUSINESS UNITED ADMINISTRATION OFFICIALS HAVE TALKED ABOUT GUARANTEEING THAT THE PAYROLL PREMIUM RATE NEVER GOES BEYOND A SPECIFIED LEVEL IF THE LIMIT DIDN'T PROVE TO BE ENOUGH REVENUE WOULD HAVE TO BE FOUND BY SOME MEANS OTHER THAN TAXING BUSINESS BUT MANY BUSINESS PEOPLE THINK THAT GUARANTEE OR NOT THE ADMINISTRATION WOULD INEVITABLY COME BACK TO THEM TO MAKE UP ANY SHORTFALL WHETHER IT WAS CALLED A TAX OR NOT 9306010097 930601 BUSINESS BRIEF GROW GROUP INC CORIMON VENEZUELAN FIRM PLANS TO BOOST STAKE TO 275 CORIMON INTERNATIONAL HOLDINGS LTD SAID IT WILL RAISE ITS POSITION IN GROW GROUP INC A NEW YORKBASED MAKER OF SPECIALTY CHEMICAL PRODUCTS TO 275 TO ALLOW IT TO DESIGNATE A THIRD DIRECTOR TO GROW GROUP'S 12MEMBER BOARD IN A FILING WITH THE SECURITIES AND EXCHANGE COMMISSION CORIMON A VENEZUELAN INDUSTRIAL COMPANY SAID IT RECENTLY AMENDED A STANDSTILL AGREEMENT WITH GROW GROUP TO ALLOW THE THIRD DIRECTOR CORIMON CURRENTLY HOLDS 37 MILLION SHARES OR A 26 STAKE IN GROW GROUP INCLUDING RECENT PURCHASES OF 29144 SHARES 9306010096 930601 INTERNATIONAL WORLD WIRE COMPILED BY RICHARD L HOLMAN SOUTH KOREA TO FIGHT RISING INFLATION SUSPENDED INDEFINITELY CORPORATE ISSUES OF FOREIGNCURRENCY BONDS WHICH HAD BEEN EXPECTED TO TOTAL 2 BILLION THIS YEAR TO TAKE ADVANTAGE OF LOWER INTEREST RATES THE MOVE IS AIMED AT CONTROLLING THE MONEY SUPPLY EXPANDING FASTER THAN PLANNED BECAUSE OF PRESIDENT KIM YOUNG SAM'S PROGRAM TO BOOST THE SAGGING ECONOMY HE HAD PLEDGED TO MAKE IT EASIER FOR BUSINESSES TO RAISE FUNDS THROUGH OVERSEAS BONDS AS THEY ARE BARRED FROM BORROWING DIRECTLY FROM FOREIGN BANKS THE MONEY SUPPLY HAS EXCEEDED GOVERNMENT TARGETS BECAUSE OF REPATRIATION OF FUNDS RAISED ABROAD HIGHER GOVERNMENT SPENDING AND A FLOOD OF FOREIGN INVESTMENT INTO SEOUL'S STOCK EXCHANGE THE GOVERNMENT ALSO IS PRESSURING INVESTMENT TRUST COMPANIES TO CHANNEL MORE FUNDS INTO OVERSEAS STOCK MARKETS THE SOUTH KOREAN GOVERNMENT RELEASED A FIVEYEAR REFORM PLAN A GOSLOW INTRODUCTION OF FREEMARKET MECHANISMS IN THE CENTRALIZED ECONOMY FOR THREE DECADES THE FINANCIAL SECTOR HAS BEEN USED TO FUND RAPID INDUSTRIALIZATION PRODUCING INEFFICIENT SUBSIDIZED BANKING AND CORPORATE SECTORS NOW LOSING THEIR COMPETITIVE EDGE GLOBALLY THOUGH PRESIDENT KIM YOUNG SAM HAS PROMISED AN OPEN FINANCIAL SYSTEM BY 1997 THE VAGUELY WORDED PLAN TO BE DETAILED LATER INDICATES LEISURELY CHANGES SUCH AS IN LOANS TO CONGLOMERATES UPDATED ACCOUNTING STANDARDS PHASEDOUT CONTROLS ON FOREIGNEXCHANGE AND STOCK MARKETS DEREGULATED INTEREST RATES AND BANKING RIVALRY WITH SECURITIES FIRMS RUSSIA WANTS TO RENEGOTIATE ITS CONTRACT WITH THE DE BEERS DIAMOND CARTEL TO ALLOW THE REPUBLIC TO SELL MORE OF ITS STONES ON THE WORLD MARKET RUSSIA IS MIDWAY THROUGH A FIVEYEAR 5 BILLION PACT THAT REQUIRES SELLING 95 OF RUSSIA'S UNCUT DIAMONDS THROUGH DE BEERS AND ALLOWS THE REMAINDER TO BE SOLD INDEPENDENTLY SUBJECT TO LIMITS ON PRICES VOLUME AND SELLING SITES RUSSIA WHICH ACCOUNTS FOR A FOURTH OF THE WORLD SUPPLY OF UNCUT DIAMONDS WANTS TO SELL 20 OF ITS STONES INDEPENDENTLY GREECE WILL SELL 35 OF ITS SUGAR MONOPOLY THE COUNTRY'S LARGEST FOOD COMPANY THROUGH A CAPITAL INCREASE TO RAISE 75 BILLION DRACHMAS 345 MILLION THE ECONOMY MINISTRY SAID FOR THE FIRST TIME A GREEK STATE COMPANY WILL BELONG PARTLY TO THE PEOPLE WHO WORK IN IT THE PARTIAL PRIVATIZATION RESERVES 10 OF THE NEW GREEK SUGAR INDUSTRY SHARES AT 800 DRACHMAS 368 EACH FOR SUGAR BEET FARMERS SUGAR WORKERS AND EMPLOYEES OF THE STATEOWNED AGRICULTURAL BANK WHICH NOW CONTROLS 98 OF THE SUGAR MONOPOLY THE REMAINING 25 WILL BE OFFERED TO PRIVATE INVESTORS AT 1200 DRACHMAS A SHARE POLISH PRESIDENT LECH WALESA RESISTING POPULIST PRESSURE VETOED HIGHER PENSION PAYMENTS PARLIAMENT ISN'T EXPECTED TO OVERRIDE THE VETO OF THE LEGISLATION WHICH WOULD HAVE INCREASED THE BUDGET DEFICIT NOW 81 TRILLION ZLOTYS 499 BILLION BY 21 TRILLION ZLOTYS OR 26 THIS IN TURN WOULD HAVE JEOPARDIZED POLAND'S AGREEMENT WITH THE INTERNATIONAL MONETARY FUND LIMITING THE COUNTRY'S BUDGET DEFICIT TO 5 OF GROSS NATIONAL PRODUCT THE RAISES ALSO WOULD HAVE BLOCKED PROPOSED REFORMS OF THE OUTMODED SOCIAL SECURITY SYSTEM CHINA WILL HOLD A SECOND TRADE FAIR IN SOUTH AFRICA THIS YEAR IN A BID TO IMPROVE TRADE AND INVESTMENT TIES THE SPONSORING CHINA ECONOMIC & TRADE CONSULTANTS CORP EXPECTS 70 FIRMS MOSTLY IN THE CHINESE MACHINERY ELECTRONICS AND TEXTILE INDUSTRIES TO GO TO THE OCTOBER FAIR IN JOHANNESBURG THE FIRST FAIR WAS HELD IN APRIL SOUTH AFRICA PLANS ITS FIRST TRADE FAIR IN CHINA NEXT MARCH CHINA HAS EXPRESSED INTEREST IN BUYING ADVANCED SOUTH AFRICAN TECHNOLOGY IN MINING AND METALLURGY POLICYMAKERS FROM 24 INDUSTRIAL NATIONS WILL FOCUS ON TRADE AND UNEMPLOYMENT IN A PARIS MEETING THIS WEEK AMID ONE OF THE DEEPEST ECONOMIC DOWNTURNS IN DECADES BUT THEY SEE LITTLE PAYOFF AT ITS ANNUAL MEETING THE ORGANIZATION FOR ECONOMIC COOPERATION AND DEVELOPMENT WOULD LIKE TO BREAK THE DEADLOCK IN WORLD TRADE TALKS TO STIMULATE ECONOMIC GROWTH AND EASE CHRONIC UNEMPLOYMENT DESPITE US HOPES TO WRAP UP BEFORE YEAR END THE TRADELIBERALIZATION TALKS UNDER THE GENERAL AGREEMENT ON TARIFFS AND TRADE OTHER OECD COUNTRIES DON'T EXPECT SOLUTIONS TO ADVANCE THE NEGOTIATIONS AND THEY SAID JOBLESSNESS WON'T BE SOLVED BY OECD BUREAUCRATS ESPECIALLY WITH CONSTRUCTIVE DEBATE CHOKED OFF BY THE SIXMINUTE LIMIT ON DELEGATES' SPEECHES MOREOVER THE OECD WHICH MAINLY MONITORS MEMBERS' ECONOMIES AND POLICIES MAY BE OVERRATED AS A FORUM FOR COORDINATION THE OECD NATIONS THIS YEAR SEE INFLATIONADJUSTED GROWTH REPEATING LAST YEAR'S ANEMIC 15 DESPITE LOWER INTEREST RATES AS GOVERNMENTS' BALLOONING BUDGET DEFICITS BAR TAX CUTS OR STIMULATIVE SPENDING MONGOLIA FREED ITS TUGRIK CURRENCY TO FLOAT AGAINST FOREIGN CURRENCIES THE TURGIK WHICH HAD BEEN OFFICIALLY VALUED AT 150 TO THE US DOLLAR PLUNGED TO SETTLE AT 394 TOKYO POLICE WENT ON FULL ALERT AND PLAN TO MOBILIZE 30000 OFFICERS FOR THE JUNE 9 WEDDING OF JAPANESE CROWN PRINCE NARUHITO AND MASAKO OWADA A FORMER DIPLOMAT SEVERAL EXTREMIST GROUPS THAT OPPOSE THE COUNTRY'S IMPERIAL SYSTEM HAVE VOWED TO DISRUPT THE ROYAL WEDDING CELEBRATION 9306010095 930601 WHO'S NEWS PACO PHARMACEUTICAL SERVICES INC PACO PHARMACEUTICAL SERVICES INC LAKEWOOD NJ JAMES W HANEY WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER SUCCEEDING RUSSELL R HAINES 64 YEARS OLD WHO WILL REMAIN CHAIRMAN AND CHIEF EXECUTIVE OFFICER MR HANEY 57 HAD BEEN SENIOR VICE PRESIDENT OPERATIONS HE SAID MR HAINES IS EXPECTED TO CONTINUE AS CHAIRMAN AND CHIEF EXECUTIVE FOR SEVERAL MORE YEARS PACO A PROVIDER OF CONTRACT DRUG PACKAGING AND MANUFACTURING SERVICES DOESN'T HAVE A MANDATORY RETIREMENT AGE OF 65 HE SAID 9306010094 930601 LAW LEGAL BEAT WALL STREET'S NEW US ATTORNEY IS EXPECTED TO REVITALIZE OFFICE BY JONATHAN M MOSES STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WALL STREET'S NEW TOP COP MANHATTAN US ATTORNEY MARY JO WHITE IS EXPECTED TO REVITALIZE THE FEDERAL PROSECUTOR'S OFFICE THAT TRADITIONALLY HAS LED THE FIGHT AGAINST WHITECOLLAR CRIME MS WHITE WITH A REPUTATION FOR PURSUING TOUGH FARREACHING CASES AS A SENIOR FEDERAL PROSECUTOR IN BROOKLYN TAKES OFFICE TODAY ON AN INTERIM BASIS IN MANHATTAN HER FORMAL NOMINATION AS HEAD OF THE US ATTORNEY'S OFFICE FOR THE SOUTHERN DISTRICT OF NEW YORK WILL BE MADE BY PRESIDENT CLINTON LATER THIS SUMMER AND IS EXPECTED TO BREEZE THROUGH SENATE CONFIRMATION DEFENSE ATTORNEYS AND OTHER PROSECUTORS ALREADY ARE PREDICTING THAT MS WHITE WILL RETURN THE OFFICE TO THE AGGRESSIVE STYLE OF RUDOLPH GIULIANI WHO INITIATED MANY OF THE MAJOR WALL STREET CASES OF THE 1980S THEY SAY MS WHITE'S TENURE WILL BE A BREAK FROM THE MORE LOWKEY APPROACH OF OTTO OBERMAIER MR GIULIANI'S SUCCESSOR WHO CAME FROM A PROMINENT CRIMINALDEFENSE FIRM MS WHITE ESTABLISHED HER TRACK RECORD IN WHITECOLLAR CRIME CASES IN THE US ATTORNEY'S OFFICE IN BROOKLYN WHERE SHE WAS SECONDINCOMMAND UNDER ANDREW MALONEY IN RECENT MONTHS SHE WAS ACTING US ATTORNEY IN BROOKLYN AFTER MR MALONEY AND OTHER US ATTORNEYS STEPPED DOWN TO MAKE ROOM FOR MR CLINTON'S APPOINTMENTS UNDER MS WHITE AND MR MALONEY THE BROOKLYN OFFICE TOOK ON SEVERAL HIGHPROFILE CASES THAT ARGUABLY WERE OUTSIDE THEIR GEOGRAPHIC JURISDICTION MS WHITE FOR INSTANCE PUSHED FOR THE PROSECUTION OF HARVEY MYERSON A ONCE HIGHFLYING WALL STREET ATTORNEY ACCUSED OF FALSELY BILLING HIS CLIENTS INCLUDING AMERICAN EXPRESS CO MS WHITE ALSO PLAYED A LARGE ROLE IN THE BROOKLYN OFFICE'S 1991 PROSECUTION OF THE DEFUNCT EASTERN AIRLINES WHICH PAID A 35 MILLION FINE AFTER PLEADING GUILTY TO CONSPIRING TO KEEP FALSE AIRPLANE REPAIR RECORDS IN A FIRSTOFITSKIND CASE MS WHITE IN AN INTERVIEW SAID SHE WON'T SHY AWAY FROM CASES THAT MAY EXTEND BEYOND THE JURISDICTION OF THE 200LAWYER MANHATTAN OFFICE NATIONAL CASES NEED TO BE BROUGHT SOMEWHERE MS WHITE SAID IF ONE DISTRICT ISN'T DOING IT THEN MAYBE WE SHOULD MS WHITE SAID THAT IN THE AREA OF WHITECOLLAR CRIME HIGHPROFILE CASES ARE ESPECIALLY IMPORTANT BECAUSE THEY SEND A MESSAGE OF DETERRENCE TO THE FINANCIAL COMMUNITY FOR THE SYSTEM'S SAKE THERE SHOULD BE THE PERCEPTION THAT WE'RE TAKING ON FINANCIAL CRIME SAID THE 45YEAROLD MS WHITE MS WHITE DECLINED TO COMMENT ON POTENTIAL TARGETS OF INVESTIGATION BUT SHE SAID I THINK CASES INVOLVING MASSIVE CONSUMER FRAUD ARE SOMETHING WE NEED TO FOCUS ON IN THE LEGAL COMMUNITY THE FORMER COLUMBIA LAW REVIEW EDITOR IS KNOWN FOR HER QUICK UNDERSTANDING OF COMPLICATED ISSUES AND HER UNFLAGGING ENERGY AS A BOSS SHE'S ALSO WON THE LOYALTY OF TRIAL ATTORNEYS AND OF THE INVESTIGATORS WHO DIG UP CASES MARY JO IS A BIGCASE KIND OF PROSECUTOR SAID SEAN O'SHEA CHIEF OF THE SECURITIESCRIME UNIT IN THE US ATTORNEY'S OFFICE IN BROOKLYN MY JOB IS TO BRING IN THE CASES AND SHE'S ALWAYS SUPPORTIVE MS WHITE JOINED THE BROOKLYN OFFICE AFTER BEING A PARTNER FOR SEVEN YEARS AT DEBEVOISE & PLIMPTON A PROMINENT NEW YORK LAW FIRM SHE MAINLY DEFENDED FINANCIAL CASES INCLUDING CIVIL ACTIONS BY THE SECURITIES AND EXCHANGE COMMISSION AND POTENTIAL CRIMINAL PROSECUTIONS ROBERT SHWARTZ A DEBEVOISE PARTNER SAID THE MOST SIGNIFICANT RECOLLECTION HE HAD ABOUT MS WHITE WAS THAT NONE OF HER CASES RESULTED IN AN INDICTMENT IN THE LATE 1970S BEFORE JOINING DEBEVOISE MS WHITE WAS AMONG A HANDFUL OF WOMEN BREAKING INTO THE MALEDOMINATED PROSECUTORIAL WORLD MS WHITE WHOSE HUSBAND JOHN IS A PARTNER AT NEW YORK LAW FIRM CRAVATH SWAINE & MOORE SAID SHE STILL RELIES ON A NETWORK OF WOMEN WHOM SHE WORKED WITH AND BEFRIENDED 15 YEARS AGO WHEN SHE WAS AN ASSISTANT US ATTORNEY IN MANHATTAN MS WHITE AN AVID SPORTS FAN IS BEST REMEMBERED BY SOME FROM THOSE EARLY DAYS FOR A TENNIS GAME BETWEEN HERSELF AND A MALE INVESTIGATOR IN THE MANHATTAN US ATTORNEY'S OFFICE IT WAS SORT OF OUR BILLY JEAN KING VS BOBBY RIGGS SAID BENEDICT SAURINO A LONGTIME INVESTIGATOR IN THE MANHATTAN OFFICE BEFORE THE MATCH MR SAURINO SAID MS WHITE RODE UP ON A MOTORCYCLE BLASTING THE SONG I AM WOMAN SHE WON STUDENTS PLANNING TO ATTEND LAW SCHOOL HAVE LOWERED THEIR EXPECTATIONS ABOUT THE LEGAL PROFESSION A SURVEY OF STUDENTS PREPARING FOR THE LAWSCHOOL ADMISSION TEST FOUND THAT 73 BELIEVE JOB PROSPECTS IN THE FIELD ARE WORSE THAN THEY WERE FIVE YEARS AGO AND 41 OF THE STUDENTS SAY THEY DON'T EXPECT TO EARN AS MUCH AS THEIR PREDECESSORS DID THE SURVEY OF 300 STUDENTS BY KAPLAN EDUCATIONAL CENTER A TESTPREPARATION COMPANY OWNED BY WASHINGTON POST CO ALSO FOUND THAT 59 BELIEVE THAT THE PUBLIC IMAGE OF LAWYERS HAS GOTTEN WORSE IN THE PAST FIVE YEARS THE SURVEY WAS CONDUCTED OF STUDENTS PREPARING FOR THE LAWSCHOOL ADMISSION TEST LAST FALL WHO'S NEWS MAXIM H WALDBAUM JOINED NEW YORK LAW FIRM FRIED FRANK HARRIS SHRIVER & JACOBSON AS A LITIGATION PARTNER HE FORMERLY WAS PARTNER IN CHARGE OF THE NEW YORK INTELLECTUAL PROPERTY SECTION OF THE LITIGATION GROUP OF JONES DAY REAVIS & POGUE PAUL K MILMED CHIEF OF THE ENVIRONMENTAL PROTECTION UNIT OF THE US ATTORNEY'S OFFICE IN MANHATTAN JOINED WHITE & CASE HE WILL BE OF COUNSEL TO THE NEW YORK LAW FIRM ADDING A NAME ONE OF THE NATION'S LEADING PLAINTIFFS LAW FIRMS MILBERG WEISS BERSHAD SPECTHRIE & LERACH IS CHANGING ITS NAME PATRICIA M HYNES WILL BECOME A NAME PARTNER IN THE FIRM WHICH WILL BECOME MILBERG WEISS BERSHAD HYNES & LERACH DROPPED FROM THE NAME IS JARED SPECTHRIE WHO WILL BECOME OF COUNSEL AS A NONPARTNER SENIOR LAWYER ASSOCIATED WITH THE FIRM THE MOVE MAKES MILBERG WEISS ONE OF THE FEW NATIONAL LAW FIRMS TO HAVE A WOMAN AMONG ITS NAME PARTNERS CHICAGO CONNECTION KENNETH W DAM HAS JOINED KIRKLAND & ELLIS ON AN OF COUNSEL NONPARTNERSHIP BASIS MR DAM A PROFESSOR AT THE UNIVERSITY OF CHICAGO LAW SCHOOL WILL ADVISE THE LAW FIRM'S INTERNATIONAL CLIENTS ON TRADE AND ANTITRUST ISSUES HE PREVIOUSLY WAS DEPUTY SECRETARY OF STATE UNDER GEORGE SCHULTZ AND A VICE PRESIDENT AT INTERNATIONAL BUSINESS MACHINES CORP 9306010093 930601 INTERNATIONAL SAMSUNG UNIT PACT IN CHINA SEOUL SOUTH KOREA SAMSUNG ENGINEERING CO A UNIT OF SOUTH KOREA'S SAMSUNG GROUP SIGNED A 50 MILLION CONTRACT WITH TWO CHINESE CHEMICAL COMPANIES UNDER THE CONTRACT WITH THE CHINA NATIONAL CHEMICAL CONSTRUCTION CORP AND JILIN CHEMICAL INDUSTRIAL GROUP SAMSUNG OFFICIALS SAID THE KOREAN COMPANY WILL PROVIDE KEY FACILITIES FOR THE CONSTRUCTION OF A PETROCHEMICAL PLANT IN JILIN CHINA THE PLANT DUE TO BE COMPLETED 42 MONTHS AFTER THE START OF CONSTRUCTION WILL BE CAPABLE OF PRODUCING 100000 TONS OF ETHYLENE GLYCOLE A YEAR 9306010092 930601 INTERNATIONAL SOUTH KOREA INDUSTRIAL OUTPUT SEOUL SOUTH KOREA INDUSTRIAL OUTPUT IN SOUTH KOREA ROSE 01 IN APRIL FROM A YEAR EARLIER THE NATIONAL STATISTICAL OFFICE SAID THE GAIN IN INDUSTRIAL OUTPUT WAS THE SECONDPOOREST SHOWING OF THIS YEAR FOLLOWING A DROP OF 53 REPORTED IN JANUARY INDUSTRIAL OUTPUT GREW 25 IN MARCH AND 53 IN FEBRUARY THE STATISTICS OFFICE SAID THE GROWTH WAS SMALL IN PART BECAUSE OF ABNORMALLY HIGH GROWTH MARKED A YEAR EARLIER WHEN APRIL 1992 SHOWED AN ANNUALIZED GAIN OF 95 THE PRODUCTION DISRUPTION CAUSED BY A 28DAYLONG DISPUTE AT UNION STEEL CO ALSO AFFECTED THIS YEAR'S LOWER GROWTH THE OFFICE SAID 9306010091 930601 BUSINESS BRIEF FOURTH FINANCIAL CORP KANSAS CONCERN BUYS BANKS INCREASES ASSET BASE BY 5 FOURTH FINANCIAL CORP WICHITA KAN SAID IT ACQUIRED BANKS IN OKLAHOMA AND KANSAS INCREASING ITS ASSET BASE BY MORE THAN 5 THE REGIONAL BANK HOLDING COMPANY SAID IT PURCHASED NICHOLS HILLS BANCORP A NICHOLS HILLS OKLA BANK HOLDING COMPANY IN A STOCK TRANSACTION WITH AN ESTIMATED MARKET VALUE OF 13 MILLION IN ADDITION FOURTH FINANCIAL PURCHASED FOR CASH F&M BANK SERVICES INC DERBY KANSAS AND BANCSHARES OF WOODWARD INC WITH BANKS IN WOODWARD AND WAUKOMIS OKLA TERMS OF THE CASH TRANSACTIONS WEREN'T DISCLOSED COMBINED ASSETS OF THE ACQUIRED COMPANIES TOTALED 295 MILLION THE COMPANY SAID FOURTH FINANCIAL HAS ABOUT 58 BILLION IN CONSOLIDATED ASSETS 9306010090 930601 LEISURE & ARTS ON SPORTS MARY JOE MOVES UP WITH MOON BALLS BY FREDERICK C KLEIN PARIS FEW THINGS ARE CERTAIN IN SPORTS WHICH IS ONE REASON THEY'RE SO MUCH FUN BUT ONE THING YOU CAN TAKE TO THE BANK IS THE IDENTITY OF THE FOUR SEMIFINALISTS IN ANY WOMEN'S TENNIS MAJOR WHEN THEY ARE ABLE MONICA SELES AND STEFFI GRAF ARE VIRTUAL SURE THINGS AND THE REMAINING TWO USUALLY ARE DRAWN FROM A SHALLOW POOL THAT INCLUDES ARANTXA SANCHEZ VICARIO GABRIELA SABATINI MARTINA NAVRATILOVA STILL AT AGE 36 JENNIFER CAPRIATI AND MARY JOE FERNANDEZ OTHERS MAY APPLY BUT THEIR RESUMES ARE LIKELY TO FIND THE CIRCULAR FILE AND AS FOR THE WINNERS DON'T ASK FROM 1988 THROUGH LAST JANUARY'S AUSTRALIAN OPEN EITHER STEFFI OR MONICA HAVE WON 18 OF THE 21 GRAND SLAM EVENTS THAT HAVE BEEN CONTESTED AND GIVEN THE WAY SHE HAS ADVANCED THROUGH THE DRAW IN THE CURRENT FRENCH OPEN STEFFI'S A STRONG CHOICE TO MAKE IT 19 OF 22 IN MONICA'S REGRETTABLE ABSENCE BUT THIS IS PARIS AND IT'S SPRING ALBEIT MOSTLY A CHILL AND CLOUDY ONE TO DATE SO ALL THINGS SEEM POSSIBLE TO THE HOPEFUL I'M SURE I'LL BREAK THROUGH SOMETIME AND I'D LIKE IT TO BE THIS ONE THIS YEAR PROCLAIMS FERNANDEZ A QUARTERFINALIST HERE I CAN BEAT ANYONE IT'S JUST A MATTER OF DOING IT BUT THAT IS NO SMALL MATTER AS MARY JOE A WINSOME MIAMIAN OF 21 YEARS HAS LEARNED IN A CAREER THAT EVEN TO HER SEEMS LONGER THAN THE FOUR FULL YEARS IT HAS COVERED IN THAT SPAN SHE HAS RANKED AS HIGH AS FOURTH IN THE WORLDWIDE VIRGINIA SLIMS RANKINGS AND CURRENTLY OCCUPIES THE NO 7 SPOT BUT HER HISTORY AGAINST HER BETTERS HASN'T BEEN ENCOURAGING SHE'S WINLESS IN HER 10 TOURNAMENT MATCHES AGAINST GRAF AND AFTER BEATING SELES THE FIRST TIME THEY MET IN 1989 STANDS 115 WITH HER NOW SHE IS 16 AGAINST THE TENACIOUS SANCHEZ VICARIO AND 711 AGAINST THE RANGY SABATINI WHO SHE IS MEETING TODAY WITH A SEMIFINAL BERTH AT STAKE SHE INSISTS THAT THE ABOVE STATS AREN'T AS BLEAK AS THEY SEEM I'VE BEEN CLOSE AGAINST BOTH STEFFI AND MONICA THREE WEEKS AGO AT BERLIN IN THE GERMAN OPEN WHERE SHE WON THE FIRST SET OF A SEMIFINAL MATCH WITH GRAF 64 AND LED 42 IN THE SECOND BEFORE LOSING IT AND EVENTUALLY THE MATCH I HAD STEFFI RIGHT THERE SHE SAYS WITH EVIDENT EXASPERATION THAT IS OF COURSE A STORY EVERY FISHERMAN CAN TELL THE RULE OF WOMEN'S TENNIS THOUGH IS THAT ONCE A PECKING ORDER HAS BEEN ESTABLISHED IT IS NOT EASILY UNPECKED THAT POINT WAS UNDERLINED ON THE RED CLAY OF ROLAND GARROS STADIUM LAST YEAR WHEN SEEDS ONE THROUGH FOUR MADE THE WOMEN'S SEMIS AND THE YEAR BEFORE WHEN NOS 1 2 3 AND 5 ADVANCED THERE'S A CHANCE SOMETHING SIMILAR COULD HAPPEN THIS TIME BECAUSE ALL OF THE TOP EIGHT SEEDS MARCHED IN LOCKSTEP TO THE QUARTERFINAL ROUND MARY JOE'S HOPES OF BETTER THINGS DO HAVE A FOUNDATION THE FIRST OF HER SEVEN APPEARANCES IN GRAND SLAM SEMIS TENNIS'S ELITE LEVEL WAS HERE IN 1989 SHE SKIPPED HER COMMENCEMENT EXERCISES AT MIAMI'S CARROLLTON SCHOOL FOR THAT ONE SHE'S TWICE BEEN A FINALIST IN A TENNIS MAJOR BOTH TIMES IN THE AUSTRALIAN OPEN SHE LOST THE FIRST OF THOSE IN 1990 TO GRAF AND THE SECOND LAST YEAR TO SELES AND SHE HAS HAD HER MOMENTS OF TRIUMPH SHE WON A GOLD MEDAL IN THE DOUBLES AT THE BARCELONA OLYMPICS WITH GIGI FERNANDEZ NO RELATION AS WELL AS A BRONZE IN THE SINGLES THAT THOSE CAME ON CLAY WITH THE APPEARANCE AND CONSISTENCY OF CHOCOLATE PUDDING COURTS MUCH SLOWER THAN THE ONES HERE COULD BODE WELL FOR HER CURRENT CHANCES MARY JOE'S FAVORITE SURFACES ARE THE HARD COURTS SHE GREW UP PLAYING IN HER NATIVE CITY WHERE SHE MOVED WITH HER PARENTS AFTER HER BIRTH IN THE DOMINICAN REPUBLIC TALL SHE'S 5FOOT10 NOW AND ATHLETIC SHE WAS SOMETHING OF A TENNIS PRODIGY WINNING ORANGE BOWL AGEGROUP TOURNAMENTS FOUR YEARS RUNNING AND IN 1985 AT AGE 14 YEARS AND ONE MONTH BECOMING THE YOUNGEST PLAYER TO WIN A MAINDRAW US OPEN MATCH BUT THOSE EARLY ACHIEVEMENTS MASKED A COUPLE OF WEAK SPOTS IN HER MAKEUP ONE WAS HER INSISTENCE ON GOING TO AN HONESTTOGOSH HIGH SCHOOL INSTEAD OF JOINING THE TENNIS CIRCUS FULLTIME AT AGE 14 OR 15 AS MOST TOP WOMEN PLAYERS HAVE ANOTHER WAS AN AVERSION TO ANY EXERCISE THAT DIDN'T INVOLVE CHASING A BALL WITH A RACKET MY IDEA OF A WORKOUT WAS 20 MINUTES ON AN EXERCISE BIKE ON DAYS I DIDN'T HAVE MATCHES SHE CONFESSES SHE SINCE HAS STRIVEN MIGHTILY TO BUILD HER STAMINA AND UNDER HAROLD SOLOMON HER COACH FOR THE LAST 18 MONTHS IMPROVE HER GAME AS WELL THE LATTER PROJECT INCLUDES ADDING VARIETY AND AGGRESSIVENESS TO HER BASELINEBASED GAME HER STROKES I THINK ALREADY ARE PRETTY MUCH THERE SAYS SOLOMON A FRENCH OPEN FINALIST IN 1976 WHAT SHE MAINLY NEEDS TO MOVE TO THE TOP LEVEL IS TO BELIEVE IN HERSELF SOME SMALLER FRY THAN HER HAVE THE SAME IDEA MAKING SURVIVAL SOMETIMES DIFFICULT EVEN IN A SHALLOW POOL FERNANDEZ MOVED EASILY ENOUGH THROUGH HER FIRST THREE MATCHES HERE DEFEATING BELGIAN JUNIOR NANCY BEBEL IN THE FIRST ROUND AND AMERICANS ANN GROSSMAN AND KATHY RINALDI IN ROUNDS TWO AND THREE RINALDI IS ANOTHER FORMER PRODIGY BECOMING IN 1981 AT AGE 14 YEARS AND THREE MONTHS THE YOUNGEST PLAYER TO WIN AT WIMBLEDON IN ROUND FOUR ON SUNDAY THOUGH MARY JOE HAD HER HANDS FULL WITH BRENDA SCHULTZ A 6FOOT2 DUTCH WOMAN WHOSE 100 MPH SERVES ARE THE HARDEST AMONG HER GENDER A WINNER OVER 10THSEEDED MANUELA MALEEVAFRAGNIERE THE DAY BEFORE THE UNSEEDED SCHULTZ SMOKED FERNANDEZ 62 IN THE FIRST SET OF THE BESTOFTHREE TEST AND LED 53 IN THE SECOND MARY JOE COUNTERED WITH RESOURCEFULNESS JUNKING AGGRESSIVENESS IN FAVOR OF A JUNKBALL STYLE THAT WOULD HAVE DONE CREDIT TO ANDREA JAEGER THE NOTED FORMER MOONBALLER MANY OF SCHULTZ'S SMACKS FROM THERE WENT NETWARD OR WIDE AND AFTER A COUPLE RAIN DELAYS FERNANDEZ PREVAILED 26 75 AND 63 ABOUT THE BEST I CAN SAY IS THAT I HUNG IN THERE MARY JOE SAID AFTERWARD I FEEL FORTUNATE TO HAVE WON THE BRIGHT SIDE SHE ACKNOWLEDGED WAS THAT HANGING IN THERE IS WHAT IT WILL TAKE TO MAKE HER GREAT LEAP FORWARD IT'S A MATTER OF WINNING THOSE LAST FEW POINTS SHE SAYS WITH A GRIN PUT THAT WAY IT DOESN'T SOUND TOO DIFFICULT DOES IT 9306010089 930601 BUSINESS BRIEF INTERFERON SCIENCES INC INVESTOR BLECH TO ACQUIRE STAKE IN FIRM FOR 10 MILLION INTERFERON SCIENCES INC NEW BRUNSWICK NJ SAID INVESTOR DAVID BLECH AGREED TO ACQUIRE 25 MILLION UNITS OF THE COMPANY FOR 10 MILLION MR BLECH IS CHAIRMAN OF D BLECH & CO A NEW YORK INVESTMENT BANKING FIRM SPECIALIZING IN LIFE SCIENCES COMPANIES THE INVESTMENT WILL BE MADE OVER A SIXMONTH PERIOD INTERFERON 53OWNED BY NATIONAL PATENT DEVELOPMENT CORP SAID EACH UNIT CONSISTS OF TWO OF THE COMPANY'S COMMON SHARES A SEVENYEAR WARRANT TO PURCHASE ONE COMMON SHARE AT 325 A SHARE AND A SEVENYEAR WARRANT TO PURCHASE ONE COMMON SHARE AT 5 A SHARE 9306010088 930601 RECENT SEC FILINGS WASHINGTON THE FOLLOWING ISSUES WERE RECENTLY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION AMERICAN HEALTHCARE MANAGEMENT INC AN OFFERING OF 100 MILLION SENIOR SUBORDINATED NOTES DUE 2003 VIA GOLDMAN SACHS & CO HORNBECK OFFSHORE SERVICES INC AN OFFERING OF 35 MILLION COMMON SHARES VIA MERRILL LYNCH & CO AND THE ROBINSONHUMPHREY CO PANAMSAT LP AND PANAMSAT CAPITAL CORP AN OFFERING OF 635 MILLION OF NOTES VIA DONALDSON LUFKIN AND JENRETTE SECURITIES CORP AND BEAR STEARNS & CO PUEBLO XTRA INTERNATIONAL INC AN OFFERING OF 200 MILLION OF SENIOR NOTES DUE 2003 VIA MORGAN STANLEY & CO TEXAS UTILITIES ELECTRIC CO AN OFFERING OF 1445 MILLION OF SECURED FACILITY BONDS VIA MORGAN STANLEY & CO AND SALOMON BROTHERS INC 9306010087 930601 VEREX ASSURANCE INC RATINGS NEW YORK MOODY'S INVESTORS SERVICE INC SAID IT IS REVIEWING THE CLAIMSPAYING ABILITY RATING OF VEREX ASSURANCE INC FOR POSSIBLE UPGRADE FOLLOWING GFC FINANCIAL CORP'S ANNOUNCEMENT IT WOULD SELL THE MORTGAGE INSURER TO GE CAPITAL MORTGAGE CORP 9306010086 930601 GM WORKERS VOTE EXTRA SHIFT OSHAWA ONTARIO UNIONIZED WORKERS AT GENERAL MOTORS CORP'S OSHAWA TRUCK PLANT VOTED IN FAVOR OF CREATING A THIRD SHIFT WHICH WOULD MAKE IT THE FIRST ROUNDTHECLOCK OPERATION BY A NORTH AMERICAN AUTO MAKER THE EXTRA SHIFT WOULD PROVIDE JOBS FOR 666 WORKERS THAT GM HAS LAID OFF OR PLANS TO LAY OFF BY THE END OF THE YEAR A LOCAL OF THE CANADIAN AUTO WORKERS VOTED IN FAVOR OF THE SHIFT EVEN THOUGH IT WOULD MEAN SLIGHTLY FEWER HOURS WORKED AND LESS OVERTIME FOR CURRENT WORKERS A GM SPOKESMAN SAID THE EXTRA SHIFT HASN'T BEEN OFFICIALLY APPROVED BUT CAW PRESIDENT BUZZ HARGROVE SAID THAT AFTER SPEAKING WITH GM CANADA OFFICIALS HE UNDERSTANDS THE THIRD SHIFT WILL GO AHEAD 9306010085 930601 ELECTRONIC CAMPUS TECHNOLOGY THREATENS TO SHATTER THE WORLD OF COLLEGE TEXTBOOKS CDROM INTERACTIVITY PCS SPREAD WHILE PUBLISHERS MOSTLY JUST WAIT AND SEE LIBRARIES THAT PRINT TO ORDER BY MEG COX STAFF REPORTER OF THE WALL STREET JOURNAL A TECHNOLOGY REVOLUTION IS SWEEPING HIGHER EDUCATION AT DREW UNIVERSITY EVERY ENTERING FRESHMAN IS GIVEN A HIGHPOWERED NOTEBOOKSTYLE COMPUTER AND SOME PROFESSORS ASSIGN SOFTWARE INSTEAD OF BOOKS PROFESSOR NORMAN LOWREY TEACHES MUSICAL COMPOSITION USING A FLOPPY DISK THAT ENABLES STUDENTS TO COMPOSE MUSIC ON THEIR COMPUTERS AND THEN PLAY IT BACK STUDENTS AT CORNELL'S VETERINARY SCHOOL WORK ON COMPUTER SIMULATIONS THAT ALLOW THEM TO EXAMINE ANIMALS COMPLETE WITH AUDIBLE HEARTBEATS BEFORE EXPERIMENTING WITH TREATMENTS THEY GET REALLY UPSET IF THEY KILL FLUFFY THE DOG SAYS KATHY EDMONDSON AN ADMINISTRATOR EVEN THOUGH IT'S JUST ON COMPUTER BUT MOST COLLEGETEXTBOOK PUBLISHERS AREN'T READY FOR THIS HIGHTECH CONVERSION DESPITE SUCH ADVANCES AS CDROM VIDEO AUDIO AND TEXT STORED ON A COMPACT DISK INTERACTIVE COMPUTER SOFTWARE AND OTHER SOCALLED MULTIMEDIA DEVELOPMENTS THE PUBLISHERS IN THE 26 BILLION MARKET FOR COLLEGE BOOKS COULD MISS A POTENTIAL GOLD MINE IN NEW PRODUCT SALES THEY HAVE A FORTUNE SUNK IN THE MAKING AND MARKETING OF STANDARD TEXTBOOKS THAT ARE INCREASINGLY BEHIND THE TIMES AND TECHNOLOGY TO SURVIVE SOME EDUCATORS WARN PUBLISHERS MUST PREPARE FOR TITANIC CHANGE IF THEY DON'T OTHERS ARE POISED TO TAKE BUSINESS FROM THEM THE TEXTBOOK IS THE WRONG MEDIUM FOR COLLEGES TODAY I CALL IT PEDAGOGICAL POLYESTER SAYS JAMES NOBLITT HEAD OF THE INSTITUTE FOR ACADEMIC TECHNOLOGY AT UNIVERSITY OF NORTH CAROLINA THESE DAYS THE WORLD CHANGES EVERY SIX MONTHS AND TEXTBOOKS COME OUT EVERY THREE OR FOUR YEARS THE TECHNOLOGY IS NOW IN PLACE TO KEEP UP WITH CHANGE BUT TEXTBOOKS CAN'T DO IT COMING SOON LEADING EDUCATORS SAY IS A WORLD WHERE COLLEGE STUDENTS WILL BUY MORE COMPUTER DISKS THAN BOOKS AND MOST OF THE BOOKS REMAINING WILL BE PRINTED JUST DAYS BEFORE CLASS STUDENTS WILL USE PERSONAL COMPUTERS TO SEARCH WHOLE LIBRARIES' WORTH OF RESEARCH BOOKS WITHOUT LEAVING THEIR DORM ROOMS ASSIGNMENTS WILL ROUTINELY INCLUDE MULTIMEDIA PROJECTS MIXING WORDS WITH SOUND AND VIDEO SOME PUBLISHERS SEE THE WRITING ON THE SCREEN IF TEXTBOOK PUBLISHERS DON'T WAKE UP AND LEARN HOW TO MAKE MARKET AND DISTRIBUTE SOMETHING OTHER THAN A BOOK THE RUG WILL BE PULLED RIGHT OUT FROM UNDER US SAYS ROBERT LYNCH DIRECTOR OF MCGRAWHILL INC'S PRIMIS SERVICE WHICH ALLOWS PROFESSORS TO CUSTOMIZE ITS TEXTBOOKS ON THE OTHER HAND IF WE DO THINGS RIGHT AND DEVELOP THE FULL POTENTIAL OF HIGHTECH EDUCATIONAL PUBLISHING THIS COULD BE A 50 BILLION BUSINESS INSTEAD OF A 26 BILLION BUSINESS THOUGH PRICE INCREASES HAVE KEPT GROSS SALES CURVING UPWARD UNIT SALES OF COLLEGE TEXTBOOKS HAVE BEEN FALLING FOR YEARS AND PROFITS FOR MOST PUBLISHERS HAVE SHRUNK SALES OF USED BOOKS FOR WHICH PUBLISHERS GET PAID NOTHING HAVE MORE THAN DOUBLED IN A DECADE AND COLLEGEBOOKSTORE MANAGERS REPORT A BOOK BACKLASH WHENEVER POSSIBLE STUDENTS ARE SHARING BOOKS OR SHUNNING THEM ALTOGETHER PARTLY IN REBELLION AGAINST PRICES THAT ROUTINELY REACH 70 FOR ONE VOLUME IN RESPONSE MOST MAJOR PUBLISHERS ARE EXPERIMENTING WITH PROGRAMS THAT PRACTICALLY BRIBE STUDENTS TO BUY BOOKS PARAMOUNT COMMUNICATIONS INC'S PARAMOUNT PUBLISHING THE NATION'S BIGGEST COLLEGE PUBLISHER RECENTLY TESTED A PROMOTION THAT REWARDS STUDENTS WHO BUY ITS NEW BOOKS WITH BONUS DOLLARS EXCHANGEABLE FOR ITEMS FROM ITS ENTERTAINMENT SUBSIDIARY LIKE MUGS AND MOVIE CASSETTES BUY 280 OF BOOKS AND YOU GET A STAR TREK JACKET ELEVEN OTHER PUBLISHERS ARE COLLECTIVELY TRYING DISCOUNT COUPONS STUDENTS GET A BREAK ON EVERYTHING FROM POPCORN TO COMPUTER SOFTWARE IF THEY BUY NEW TEXTS INSTEAD OF USED BUT SUCH MEASURES WON'T SOLVE THE BIGGEST PROBLEMS COLLEGE PUBLISHERS FACE IF IT WERE JUST THE PROBLEM OF USED BOOKS WE COULD HANDLE THAT SAYS CARL TYSON HEAD OF COLLEGE PUBLISHING FOR HARCOURT GENERAL INC'S HARCOURT BRACE UNIT IF IT WERE JUST THAT STUDENTS DON'T VALUE BOOKS LIKE THEY USED TO WE'D DEAL WITH THAT BUT THOSE THINGS ARE HAPPENING AT THE SAME TIME AS A TOTAL REVOLUTION IN TECHNOLOGY MORE THAN 20 OF STUDENTS HAVE THEIR OWN COMPUTERS AND THE FIGURE IS FAR HIGHER AT TOP COLLEGES 42 OF STUDENTS AT THE UNIVERSITY OF MICHIGAN IN ANN ARBOR HAVE PCS IT'S 70 AT CASE WESTERN RESERVE UNIVERSITY IN CLEVELAND MORE SIGNIFICANTLY MORE THAN 95 OF COLLEGES AND UNIVERSITIES HAVE COMPUTER LABS FOR STUDENTS A UNIVERSITY OF SOUTHERN CALIFORNIA SURVEY SHOWS WITHIN A DECADE PREDICTS BOB STEIN COOWNER OF VOYAGER CO A PIONEERING DESIGNER OF ELECTRONIC BOOKS THERE WILL BE NO PAPER TEXTBOOKS AT THE COLLEGE LEVEL THOUGH SOME CALL SUCH NOBOOK PROPHECIES EXTREME EXPERTS AGREE THAT THE TURN OF THE CENTURY WILL FIND A VASTLY ALTERED CULTURE IN WHICH TRADITIONAL TEXTBOOKS WILL ACCOUNT FOR ONLY A TINY SHARE OF THE TOOLS USED TO TEACH AND LEARN SOME PUBLISHERS ARE SKEPTICAL SAYING EXPENSIVE NEW TECHNOLOGIES WILL LONG REMAIN OUT OF REACH FOR MANY SMALLER INSTITUTIONS AND SOME PUBLISHERS SAY MULTIMEDIA'S SUPERIORITY IN TEACHING HASN'T BEEN ESTABLISHED WE NEED TO MAKE SURE THAT WHAT WE PUT OUT ACTUALLY WORKS BETTER THAN A TEXTBOOK SAYS ED HERESNIAK A SENIOR VICE PRESIDENT AT MCGRAWHILL STILL SOME OF THE PREDICTIONS ALREADY ARE REALITY BOTH AT LARGE UNIVERSITIES LIKE CORNELL AND AT SMALLER COLLEGES LIKE DREW IN MADISON NJ AND IT ISN'T JUST THE SCIENTIFIC AND PROFESSIONAL DISCIPLINES THAT ARE FINDING TECHNOLOGY USEFUL AT THE UNIVERSITY OF MICHIGAN DAVID VELLEMAN A PHILOSOPHY PROFESSOR HAS WRITTEN SOFTWARE FOR A COURSE IN LOGIC FOR WHICH ALL ASSIGNMENTS ARE DONE IN THE COMPUTER LAB ONE TRAILBLAZING EFFORT WITH CDROM IS A MULTIMEDIA DISK CALLED PERSEUS FROM YALE UNIVERSITY PRESS DOZENS OF COLLEGES USE IT TO TEACH GREEK AND ANCIENT CIVILIZATIONS ON A SINGLE COMPUTER DISK IT HAS 25 VOLUMES OF GREEK TEXT WITH ENGLISH TRANSLATION A 35000WORD GREEK DICTIONARY AND 6000 PHOTOS AND DRAWINGS OF ARTIFACTS AND ARCHAEOLOGICAL SITES PERSEUS COSTS 120 MUCH LESS THAN WHAT COMPARABLE BOOKS WOULD COST STUART LYNN THE DIRECTOR OF TECHNOLOGY AT CORNELL HAS PUSHED THE SCHOOL TO THE FOREFRONT OF CHANGE SO A VISIT TO THE CAMPUS IN ITHACA NY PROVIDES A HINT OF WHAT IS COMING STUDENTS ALREADY USE THEIR COMPUTERS TO CHECK GRADES AND BURSAR BILLS GET SOCIAL ADVICE FROM AN ONLINE SERVICE CALLED ASK UNCLE EZRA AND BROWSE THROUGH THE CARD CATALOG OF 18 ONCAMPUS LIBRARIES BEAR ACCESS THE OLDEST CAMPUS COMPUTER NETWORK IN THE COUNTRY PROVIDES THESE FREE SERVICES AND IT WILL SOON BE USED FOR MUCH MORE WE HAVE A PROTOTYPE PROGRAM THAT WILL MAKE IT POSSIBLE BY THE END OF THIS YEAR FOR PROFESSORS AND STUDENTS TO ORDER A BOOK FROM A CAMPUS LIBRARY ONSCREEN AND GET A COPY PRINTED IN A MATTER OF DAYS SAYS MR LYNN THE NUMBER OF BOOKS AVAILABLE THIS WAY WILL BE LIMITED AT FIRST BUT ULTIMATELY WILL INCLUDE EVERYTHING IN THE STACKS TO MAKE THIS POSSIBLE TECHNICIANS AT CORNELL'S LIBRARIES ARE TESTING A DEVICE FROM XEROX CORP THAT SCANS THE PAGES OF BOOKS AND TURNS THE WORDS INTO ELECTRONIC IMPULSES THE CONTENTS OF 1100 BOOKS ARE NOW STORED ON OPTICAL DISKS THAT TAKE UP LESS THAN FOUR FEET ON A SHELF AT CORNELL'S INTERACTIVE MEDIA LAB COMMUNICATIONS PROFESSOR GERI GAY HAS DEVELOPED AN INTERACTIVE SPANISH COURSE ON LASER DISK THAT IS STARTING TO SPREAD TO OTHER COLLEGES AND HER LATEST PROJECT DEVELOPED WITH PUBLISHER JOHN WILEY & SONS INC IS THE CREATION STATION NOTEBOOK SOFTWARE THAT ENABLES STUDENTS TO CREATE MULTIMEDIA PROJECTS IT RECENTLY HAD A TRIAL RUN IN A COURSE CALLED ENGINEERING IN CONTEXT CORI WEINER A FRESHMAN WHO TOOK THE CLASS PREPARED A PROJECT WITH HER PARTNER ON THE PHYSICS OF BICYCLES TO ILLUSTRATE THEIR WRITING THEY PREPARED TWO SHORT VIDEOS OF EXPERIMENTS INCLUDING ONE ON BIKE BALANCE SAYS MS WEINER I FELT LIKE I WAS GETTING A GLIMPSE OF THE FUTURE WHEN MR LYNN LOOKS AT THE FUTURE HE SEES CUSTOMIZATION CORNELL IS A LEADER IN CUSTOM COURSEPACKS PROFESSORS HAVE LONG SUPPLEMENTED TEXTBOOKS WITH BOOK AND JOURNAL EXCERPTS BUT PUBLISHERS WON A LEGAL VICTORY IN RECENT YEARS AGAINST COPY SHOPS THAT PRINTED THEM WITHOUT PERMISSION CORNELL IS USING NEW SOPHISTICATED COPIERS THAT IMPROVE SPEED AND QUALITY AND THE STORE HANDLES ROYALTY PAYMENTS TO PUBLISHERS AFTER JUST THREE YEARS IN THE BUSINESS CORNELL'S STUDENT STORE DERIVES 20 OF ITS SALES FROM SUCH COURSE PACKETS IN THE SPRING SEMESTER ALONE CORNELL PUBLISHED 16000 COPIES OF 350 DIFFERENT PACKETS TYPICALLY SELLING FOR 20 OR LESS FOR JASON HIGHSMITH A PREMED STUDENT A COURSEPACK IN GENETICS MEANT A TIMELY LESSON ABOUT LAST NOVEMBER'S DISCOVERY OF THE GENE FOR CYSTIC FIBROSIS WHICH WON'T BE IN TEXTBOOKS FOR YEARS THESE INNOVATIONS TERRIFY MOST PUBLISHERS MCGRAWHILL STARTED PRIMIS IN 1990 AND THOUGH IT IS NOW USED ON NEARLY 500 CAMPUSES NO OTHER PUBLISHER HAS FOLLOWED PUBLISHERS SAY STARTUP COSTS ARE HIGH PROFESSORS DON'T WANT THE EXTRA WORK AND AUTHORS DON'T WANT THEIR TEXTS ALTERED SEVERAL OTHER PUBLISHERS ALLOW PROFESSORS TO CUSTOMIZE TEXTS IF THEY REQUEST IT BUT DON'T MARKET THE OPTION SOME VERSION OF CUSTOM PUBLISHING IN WHICH PROFESSORS SELECT FROM A MENU OF MATERIALS IS CLEARLY THE WAVE OF THE FUTURE FOR TEXTBOOKS SAYS CHARLES ELLIS PRESIDENT OF WILEY BUT WE'RE NOT JUMPING IN UNTIL WE SEE HOW IT WORKS IN THE MARKET SUSAN KATZ HEAD OF THE COLLEGE DIVISION AT NEWS CORP'S HARPERCOLLINS PUBLISHERS IS EXCITED VERY SOON THE TEXTBOOK IS GOING TO BECOME MUCH LESS IMPORTANT AND LESS FANCY LITTLE MORE THAN A USER'S GUIDE FOR WHAT STUDENTS WILL REALLY USE TO LEARN INTERACTIVE MULTIMEDIA STUFF SHE SAYS BUT LIKE ITS COMPETITORS HARPERCOLLINS DOESN'T HAVE MUCH OF THIS ON CAMPUS YET THIS FALL IT WILL INTRODUCE ITS FIRST CDROM PRODUCT BUT RATHER THAN SELLING IT THE PUBLISHER WILL GIVE IT AWAY TO TEACHERS WHO ADOPT ITS POPULAR TEXTBOOK TORTORA'S PRINCIPLES OF ANATOMY AND PHYSIOLOGY THE TRADITION OF GIVEAWAYS HAS CREATED A CRIPPLING PATTERN FOR PUBLISHERS FOR YEARS THEY HAVE ADDED VISUAL AIDS AS A MARKETING TOOL TO SWAY PROFESSORS AND AS THESE EXTRAS HAVE GOTTEN MORE HIGHTECH PUBLISHERS HAVE HAD TO KEEP INCREASING THE PRICE OF THE TEXTBOOK ALONG THE WAY PUBLISHERS GOT USED TO THINKING OF MULTIMEDIA AS A KIND OF LOSSLEADER FRILL THE JAM WE'VE GOTTEN INTO AS PUBLISHERS IS THAT WE STILL FOCUS 90 OF OUR ATTENTION CREATING THESE TEXTBOOKS AND ONLY 10 CREATING SOFTWARE WHICH WE BASICALLY GIVE AWAY TO PROFESSORS SO THEY'LL CHOOSE OUR BOOKS SAYS SUSAN SALTRICK DIRECTOR OF NEW TECHNOLOGY DEVELOPMENT AT WILEY THIS HAS GOT TO STOP PUBLISHERS WERE LULLED BY THE PRODIGIOUS PROFITS OF THE 1960S AND 1970S WHEN THE BABY BOOMERS WENT TO COLLEGE THE HIGHEREDUCATION MARKET WAS AMONG PUBLISHING'S MOST LUCRATIVE BUT ITS MARGINS ATTRACTED NEW COMPETITION AS PUBLISHERS MERGED AND EXPANDED IN THE 1980S COURSES THAT HAD ONCE BEEN SERVED BY TWO OR THREE STANDARD TEXTS SUDDENLY HAD EIGHT OR 10 TO STAND OUT PUBLISHERS ADDED TOUCHES LIKE FOURCOLOR GRAPHICS TODAY TEXTBOOKS HAVE GROWN SO BLOATED THEY OUTWEIGH SOME PORTABLE COMPUTERS TO COMPETE PUBLISHERS CAN'T AFFORD TO LEAVE OUT ANYTHING THAT SOME PROFESSOR SOMEWHERE MIGHT WANT SAYS JIM BEHNKE OF ADDISONWESLEY A UNIT OF BRITAIN'S PEARSON PLC WHILE MANY PUBLISHERS TARRY THE COMPETITION ISN'T WAITING PIONEERING SMALL COMPANIES HAVE SPRUNG UP ANATOMY CDROMS MADE BY ADAM SOFTWARE INC OF ATLANTA FOR INSTANCE ALREADY ARE USED BY A MAJORITY OF THE COUNTRY'S MEDICAL SCHOOLS VOYAGER OF SANTA MONICA CALIF JUST RELEASED A CDROM VERSION OF A HISTORY BOOK FROM A RANDOM HOUSE INC DIVISION WHO BUILT AMERICA BESIDES THE TEXT THE DISK INCLUDES HUNDREDS OF DOCUMENTS SUCH AS LETTERS FROM IMMIGRANTS AUDIO AND VIDEO FEATURES INCLUDE SONGS OF EACH PERIOD AND SPEECHES FROM THE 1912 PRESIDENTIAL ELECTION THERE ARE GOING TO BE A LOT OF NEW PLAYERS IN THIS FIELD AND SIZE WON'T MATTER INNOVATION WILL SAYS JOHN M CONNOLLY CHIEF EXECUTIVE OF A FASTGROWING COMPANY CALLED COURSE TECHNOLOGY INC MR CONNOLLY FORMER HEAD OF COLLEGE PUBLISHING FOR ADDISONWESLEY COFOUNDED CTI IN 1989 AND CONCENTRATED ON THE HUGE MARKET FOR BUSINESS TEXTS THE COMPANY HAS BEEN A LEADER IN DEVELOPING TEXTBOOKS TO COMPLEMENT SOFTWARE BROKERING SPECIAL DEALS TO PACKAGE BUSINESS SOFTWARE AT REDUCED RATES WITH ITS BOOKS WE HAVE 1500 COLLEGES AND UNIVERSITIES USING OUR PRODUCTS SAYS MR CONNOLLY AND A SALES FORCE OF 12 SLOWLY PUBLISHERS ARE WAKING UP WILEY NOW OFFERS ITS THERMODYNAMICS TEXTBOOK ALONE OR WITH A COMPUTER DISK THAT SIMULATES A POWER PLANT'S OPERATION A MAJORITY OF STUDENTS PAY AN EXTRA 15 FOR THE DISK MS KATZ SAYS HARPERCOLLINS HAS COMPUTER SOFTWARE PACKAGED WITH ABOUT 10 OF ITS BUSINESS TEXTBOOKS AND IS STARTING TO DESIGN EACH NEW COLLEGE TEXTBOOK AS A MULTIMEDIA LEARNING PACKAGE PARAMOUNT IS NOW CONVERTING ITS TEXTBOOKS TO A DIGITAL FORMAT WHICH IT SAYS WILL EASE THE TRANSFER OF THAT DATA TO WHATEVER MULTIMEDIA TECHNOLOGY THE PUBLISHER BACKS AT SOME POINT PARAMOUNT'S COLLEGE DIVISION SHOULD BENEFIT FROM ITS EXPERTISE IN ENTERTAINMENT KEITH SHAEFFER HEAD OF PARAMOUNT'S TECHNOLOGY GROUP HAS STARTED WHAT HE CALLS A MEDIA KITCHEN TO START MIXING UP EDUCATIONAL PRODUCTS USING NEW TECHNOLOGY LIKE A CDROM BIOLOGY PROJECT BEING DEVELOPED WITH THE SMITHSONIAN INSTITUTION EDUCATIONAL TECHNOLOGY WILL CHANGE WITH DIZZYING SPEED EXPERTS PREDICT AND EVEN WHILE CDROM GROWS SO WILL THE USE OF THE SUPERFAST COMPUTER NETWORK NOW BEING INSTALLED ON CAMPUSES NATIONWIDE MANY PUBLISHERS EXPECT THAT BY THE END OF THE DECADE THEY WILL BE SENDING THE CONTENTS OF THEIR TEXTBOOKS ACROSS THIS NETWORK POSSIBLY TO BE PRINTED IN CAMPUS BOOKSTORES NOBODY KNOWS YET HOW THEY WILL KEEP TRACK OF COPYRIGHT PERMISSIONS AND PAYMENTS BUT ONE THING SEEMS SURE THE ULTIMATE WINNERS WON'T BE THE PLAYERS WHO WAIT UNTIL SUCH WRINKLES ARE IRONED OUT WE HAD A MEETING FOR 500 PUBLISHERS IN SEPTEMBER AND SAID WE WANTED TO DEVELOP PARTNERSHIPS SAYS DARYL WEINER APPLE COMPUTER INC'S MANAGER OF MARKET DEVELOPMENT FOR HIGHER EDUCATION I THINK THEY'RE AFRAID WE WANT TO TAKE OVER THEIR INDUSTRY WHICH WE DON'T THEY HAVE GONE FROM BEING THREATENED BY TECHNOLOGY TO FINALLY STARTING TO EMBRACE IT BUT ONLY BECAUSE THEY'RE IN SURVIVAL MODE 9306010084 930601 BUSINESS BRIEF OKI ELECTRIC INDUSTRY CO PRETAX LOSS OF 3365 MILLION IS REPORTED FOR FISCAL YEAR OKI ELECTRIC INDUSTRY CO REPORTED A CONSOLIDATED PRETAX LOSS OF 3621 BILLION YEN 3365 MILLION FOR THE FISCAL YEAR ENDED MARCH 31 CITING WEAKNESS IN SALES OF SEMICONDUCTORS IN JAPAN AND OF DATA SYSTEMS FOR BROKERAGE FIRMS IN THE YEAREARLIER PERIOD THE COMPANY REPORTED A PRETAX PROFIT OF 314 BILLION YEN THE JAPANESE MAKER OF COMMUNICATIONS EQUIPMENT SAID SALES FOR THE YEAR FELL 6 TO 63962 BILLION FROM 68128 BILLION OKI SAID IT EXPECTS ITS CURRENT FISCAL YEAR TO REMAIN DIFFICULT DUE TO THE CONTINUING LULL IN SPENDING AND THE YEN'S STRENGTH RELATIVE TO OTHER CURRENCIES FOR THE YEAR ENDING MARCH 1994 THE COMPANY FORECASTS A PRETAX LOSS OF 19 BILLION YEN ON A 05 DECLINE IN SALES TO 560 BILLION YEN 9306010083 930601 BUSINESS BRIEF FUJI HEAVY INDUSTRIES LTD SUBARU AUTO MAKER REPORTS PRETAX PROFIT OF 13 MILLION FUJI HEAVY INDUSTRIES LTD MAKER OF SUBARU AUTOMOBILES REPORTED UNCONSOLIDATED PRETAX PROFIT OF 139 MILLION YEN 13 MILLION FOR THE FISCAL YEAR ENDED MARCH 1993 A REBOUND FROM A YEAREARLIER PRETAX LOSS OF 409 BILLION YEN 38 MILLION SALES GREW 6 TO 87304 BILLION YEN FROM 82392 BILLION YEN THE COMPANY ATTRIBUTED THE IMPROVEMENT TO STRONG DEMAND FOR ITS IMPREZA VEHICLES AND TO ITS MANUFACTURING OF ORIGINALEQUIPMENT PARTS FOR JAPANESE AUTO MAKER NISSAN MOTOR CO FUJI HEAVY SAID IT FORESEES RED INK FOR THE CURRENT FISCAL YEAR AMID CONTINUED WEAKNESS IN THE JAPANESE ECONOMY IT FORECAST A PRETAX LOSS OF 7 BILLION YEN ON A 03 DECLINE IN SALES TO 870 BILLION YEN THE COMPANY SAID IT WON'T PAY A DIVIDEND 9306010082 930601 USX STEEL UNIT CREATES RESERVES FOR 2ND QUARTER MORE THAN 400 MILLION SET ASIDE TO REIMBURSE EXUNIT FOR DAMAGES BY DANA MILBANK STAFF REPORTER OF THE WALL STREET JOURNAL USX CORP SAID ITS US STEEL UNIT WILL SET ASIDE SECONDQUARTER RESERVES OF MORE THAN 400 MILLION BEFORE TAXES TO COVER COURTORDERED DAMAGES AGAINST ITS FORMER BESSEMER & LAKE ERIE RAILROAD CO UNIT AS PREVIOUSLY REPORTED THE STEELMAKER MUST REIMBURSE B&LE NOW OWNED BY CLOSELY HELD TRANSTAR INC OF MONROEVILLE PA FOR DAMAGES INCURRED FROM AN ANTITRUST LAWSUIT FILED IN 1982 THE SUIT CHARGED THAT B&LE AND OTHER RAILROADS MONOPOLIZED DOCK HANDLING AND INLAND TRANSPORTATION OF IRON ORE TO STEEL MILLS FROM THE MID1950S THROUGH THE EARLY 1980S USX SAID ALL THE RAILROADS BUT B&LE HAD SETTLED ON THURSDAY THE US APPEALS COURT IN PHILADELPHIA AFFIRMED A LOWER COURT'S 1991 DAMAGE RULING AGAINST B&LE LTV CORP THE BIGGEST RECIPIENT WON AN AWARD OF 4363 MILLION WHICH LTV ESTIMATED WOULD BE ABOUT 480 MILLION WITH INTEREST LTV WHICH IS EMERGING FROM CHAPTER 11 BANKRUPTCY PROTECTION WILL CONTRIBUTE THE MONEY TOWARD ITS PENSION FUNDS OTHER PLAINTIFFS INCLUDE NATIONAL STEEL CORP WHICH IS ENTITLED TO 875 MILLION PLUS INTEREST WHEELINGPITTSBURGH CORP 679 MILLION AND SHARON SPECIALTY STEEL INC 126 MILLION NATIONAL STEEL IS NOW MAJORITY OWNED BY NKK CORP OF JAPAN B&LE MUST ALSO PAY ABOUT 17 MILLION TO THREE OHIO TRUCKING COMPANIES AND 184 MILLION TO THE ERIE PA PORT AUTHORITY AND A LOCAL CONSTRUCTION COMPANY THE JUDGMENT RAISED QUESTIONS ABOUT USX'S FINANCES EVEN THOUGH THE STEEL BUSINESS HAS BEGUN A RECOVERY STANDARD & POOR'S CORP ON FRIDAY REVISED ITS OUTLOOK ON USX TO NEGATIVE FROM STABLE WHILE THE RATING AGENCY AFFIRMED ITS RATINGS ON THE COMPANY'S DEBT IT SAID RATINGS COULD BE LOWERED IF THE DAMAGES AREN'T REVERSED OR REDUCED SHARES OF USXUS STEEL GROUP FELL 2625 TO 43 FRIDAY IN NEW YORK STOCK EXCHANGE COMPOSITE TRADING WILLIAM WYCOFF A LAWYER WITH THORP REED & ARMSTRONG IN PITTSBURGH WHICH REPRESENTS NATIONAL STEEL AND SHARON SAID THAT DAMAGES TOTALED 630 MILLION PLUS INTEREST BUT THAT B&LE WAS ENTITLED TO A CREDIT FROM EARLIER SETTLEMENTS IN THE CASE MADE BY OTHER RAILROADS AFTER THE CREDIT USX PUT THE LIABILITY AT 498 MILLION PLUS INTEREST USX SAID IT IS EXTREMELY DISAPPOINTED BY THE RULING THE COMPANY HAD SET ASIDE PREVIOUS RESERVES OF ONLY 90 MILLION IT SAID THE AWARD WOULD BE TAX DEDUCTIBLE BUT IT COULDN'T SAY EXACTLY HOW LARGE THE RESERVE WOULD BE USX SAID B&LE WHICH DECLINED TO COMMENT WILL ASK THE APPEALS COURT TO RECONSIDER ITS RULING AND IF THAT FAILS WILL APPEAL TO THE US SUPREME COURT MEL SANDER GENERAL COUNSEL FOR SHARON SAID HE DIDN'T THINK THE APPEALS COURT WOULD REVIEW ITS DECISION IN THE 1992 SECOND QUARTER US STEEL HAD A PROFIT OF 6 MILLION OR 10 CENTS A SHARE ON SALES OF 127 BILLION 9306010081 930601 INTERNATIONAL BONN COMES UNDER NEW PRESSURE TO CRACK DOWN ON RADICAL RIGHT POLICE ARREST A TEENAGER AFTER BLAZE THAT KILLED FIVE TURKS IN SOLINGEN BY TIMOTHY AEPPEL STAFF REPORTER OF THE WALL STREET JOURNAL BONN IN THE WAKE OF THE DEADLIEST ANTIFOREIGNER ATTACK SINCE GERMANY REUNITED THE BONN GOVERNMENT IS COMING UNDER HEAVY PRESSURE TO CRACK DOWN ON RADICAL RIGHTISTS BUT THIS LATEST CASE ALSO SHOWS WHY GERMANS ARE FINDING IT DIFFICULT TO STEM THE VIOLENCE IN THE EARLY HOURS OF SATURDAY ATTACKERS SET FIRE TO A HOUSE IN THE WESTERN GERMAN INDUSTRIAL CITY OF SOLINGEN KILLING TWO TURKISH WOMEN AND THREE GIRLS AND BADLY INJURING SEVERAL OTHERS A 15YEAROLD BOY WHO ESCAPED THE BLAZE REPORTEDLY IS NEAR DEATH AT A BURN CLINIC POLICE YESTERDAY ARRESTED A TEENAGER SUSPECTED OF TAKING PART IN THE ATTACK AND SAID OTHER ARRESTS MAY FOLLOW OVER THE WEEKEND GERMANY'S CHIEF PROSECUTOR SET UP A 70MEMBER STRIKE FORCE WHICH INTERVIEWED DOZENS OF RADICALS IN THE SOLINGEN AREA SEARCHING FOR LEADS THE ATTACK MARKS A NEW LOW POINT IN GERMANY'S BATTLE AGAINST THE RADICAL RIGHT THE DEATH TOLL IS THE HIGHEST FOR ANY SINGLE ATTACK SINCE THE PROBLEM OF WIDESPREAD HATE CRIMES EMERGED IN GERMANY IN 1990 THE FARRIGHT BLAMES FOREIGNERS FOR THE HOST OF ECONOMIC AND SOCIAL PROBLEMS THAT HAVE ARISEN SINCE UNIFICATION THE CASE ALSO ILLUSTRATES THE PROBLEM FACING THOSE TRYING TO QUELL THE VIOLENCE MANY RIGHTIST ATTACKS ARE THE WORK OF UNORGANIZED BANDS OF TEENAGERS WHO ARE DIFFICULT TO MONITOR OR CONTROL AND THE SIZE OF GERMANY'S TURKISH MINORITY SOME 18 MILLION ADDS TO THE HEADACHE WE CAN'T PUT POLICE BEFORE THE DOOR OF EVERY TURKISH FAMILY IN GERMANY SAID KLAUS KINKEL GERMANY'S FOREIGN MINISTER THE FIREBOMBING COMES AT A SENSITIVE MOMENT FOR BONN LAWMAKERS ON WEDNESDAY VOTED TO CHANGE GERMANY'S POSTWAR CONSTITUTION TO MAKE IT HARDER FOR FOREIGNERS TO CLAIM POLITICAL ASYLUM IN GERMANY CHANCELLOR HELMUT KOHL'S RIGHTOFCENTER COALITION CLAIMS THE CHANGE IS NECESSARY TO HALT THE RISE OF RIGHTIST POLITICAL FORCES AND STEM ANTIFOREIGNER VIOLENCE MR KOHL IS NOW LIKELY TO COME UNDER PRESSURE FROM HIS POLITICAL OPPONENTS POINTING TO SOLINGEN AS EVIDENCE THAT THE CHANGE IN THE ASYLUM LAW ENCOURAGES RATHER THAN BLUNTS THE RIGHTISTS NONE OF THOSE KILLED OR INJURED IN SOLINGEN WERE REFUGEES HOWEVER GERMANY'S TURKISH MINORITY IS OVERWHELMINGLY MADE UP OF PEOPLE INVITED TO THE COUNTRY DURING THE POSTWAR ECONOMIC MIRACLE WHEN GERMAN FACTORIES BADLY NEEDED FOREIGN WORKERS THESE RESIDENTS ARE OFTEN DEEPLY EMBEDDED IN GERMAN SOCIETY HOLDING GOOD JOBS AND SENDING THEIR CHILDREN TO GERMAN SCHOOLS THE EXTENDED TURKISH FAMILY THAT LIVED IN THE HOUSE IN SOLINGEN HAD BEEN THERE 12 YEARS AND OWNED THE PROPERTY THE FIVE THAT DIED INCLUDED FOUR SISTERS FROM ONE FAMILY THE YOUNGEST OF THEM ONLY 5 YEARS OLD THE OLDEST SISTER WHO WAS 27 JUMPED TO HER DEATH AFTER THROWING HER 3YEAROLD DAUGHTER FROM A BURNING WINDOW THE THREEYEAROLD SURVIVED BUT SUFFERED A BROKEN LEG AND SEVERE BURNS PREVIOUS EFFORTS TO CRACK DOWN ON THE RADICAL RIGHT HAVE LARGELY FAILED AFTER A SIMILAR FIREBOMBING IN NOVEMBER WHICH CLAIMED THE LIVES OF A TURKISH GRANDMOTHER AND TWO GIRLS THE BONN GOVERNMENT NOISILY ANNOUNCED IT WAS BANNING SOME NEONAZI GROUPS AND ADDING MORE POLICE TO KEEP AN EYE ON THE TROUBLEMAKERS BUT MANY OF THESE RADICALS MERELY CHANGED THE NAMES OF THEIR ORGANIZATIONS AND KEPT ON MEETING UNDER THE NOSES OF POLICE GERMAN INTERIOR MINISTER RUDOLF SEITERS WHO SPEARHEADED THE CRACKDOWN ADMITTED OVER THE WEEKEND THAT THE MEASURES WERE NOT ENOUGH INDEED THE NUMBERS CONFIRM THAT GERMANY IS FAR FROM SOLVING THE PROBLEM OF FARRIGHT VIOLENCE THERE WERE 670 REPORTS OF RIGHTIST ATTACKS DURING THE FIRST FOUR MONTHS OF THIS YEAR UP FROM 470 IN THE YEAREARLIER PERIOD MR SEITERS OFFERED NO IDEAS FOR WHAT BONN MIGHT DO IN THE WAKE OF THE SOLINGEN ATTACK BUT IT IS CLEAR THAT PRESSURE IS GROWING FOR STRONGER ACTION MR KOHL DUBBED THE ATTACK A DISGRACE AND CALLED ON ALL GERMANS TO HELP SOLVE THE CASE THE GERMAN LEADER ALSO FRETTED THE ATTACK WOULD DAMAGE TIES WITH TURKEY ONE OF GERMANY'S KEY TRADING PARTNERS THE TURKISH GOVERNMENT ISSUED AN UNSUALLY STERN STATEMENT OVER THE WEEKEND CALLING ON BONN TO GET THE SITUATION UNDER CONTROL MEANWHILE THOUSANDS OF DEMONSTRATORS TOOK TO THE STREETS IN CITIES SUCH AS BERLIN AND HAMBURG TO DENOUNCE THE FIREBOMBING WHILE GERMANY'S NORMALLY PLACID TURKISH MINORITY VENTED ITS FURY AS WELL IN SOLINGEN YESTERDAY HUNDREDS OF TURKISH DEMONSTRATORS AND GERMAN SUPPORTERS SMASHED STORE WINDOWS AND BLOCKED A BUSY AUTOBAHN TO PROTEST THE ATTACK AT LEAST PART OF THE TURKISH ANGER WAS CAUSED BY COMMENTS FROM SOLINGEN'S CHRISTIAN DEMOCRATIC MAYOR BERND KREBS WHO INITIALLY SUGGESTED THE ATTACK MIGHT BE THE WORK OF OTHER TURKS GERMANY HAS SEEN ATTACKS BETWEEN RIVAL TURKISH GROUPS MOST NOTABLY ASSAULTS ON TURKISH BANKS AND OTHER INSTITUTIONS BY MEMBERS OF TURKEY'S KURDISH MINORITY SATURDAY'S FIREBOMBING HOWEVER HAD ALL THE TRADEMARKS OF A RIGHTIST ASSAULT SOME WITNESSES SAID THEY SAW YOUTHS WEARING THE HEAVY BLACK BOOTS ASSOCIATED WITH RIGHTIST SKINHEADS RUNNING FROM THE SCENE OF THE FIRE NEIGHBORS ALSO REPORTED THAT RIGHTIST YOUTHS HAD LONG USED A PARK BEHIND THE HOUSE AS A GATHERING POINT 9306010080 930601 TAX PLANNERS ADVISE RICH NOT TO BOOST ESTIMATED PAYMENTS AFTER HOUSE VOTE BY RICK WARTZMAN STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE TAX BILL THAT PASSED THE HOUSE LATE LAST WEEK COULD HAMMER UPPERINCOME PEOPLE HARD BUT TAX PLANNERS SAY THAT IT MAKES NO SENSE TO START TAKING THE POUNDING JUST YET ALTHOUGH THE INCREASE IN THE TOP MARGINAL TAX RATE TO 396 FROM THE CURRENT 31 WOULD BE RETROACTIVE TO JAN 1 FINANCIAL ADVISERS ARE TELLING CLIENTS WHO MAKE QUARTERLY ESTIMATED TAX PAYMENTS THAT THEY SHOULD REFRAIN FROM SENDING ANY EXTRA MONEY TO UNCLE SAM AT THIS POINT RATHER THEY SHOULD JUST PUT THE DOLLARS ASIDE SO THAT THEY CAN BE READY TO MAKE A LARGER PAYMENT NEXT APRIL 15 IF THEY HAVE TO AS LONG AS PEOPLE SOCK AWAY ENOUGH MONEY THERE'S NO RISK THE CLINTON ADMINISTRATION SAYS THAT THE GOVERNMENT WON'T PENALIZE PEOPLE WHO UNDERPAY THEIR ESTIMATED TAXES AS A RESULT OF CHANGES IN THE TAX RATES I WOULD VERY MUCH BEGIN TO MAKE SOME PROJECTIONS ABOUT WHAT 1993 AND 1994 MIGHT BEGIN TO LOOK LIKE FROM A TAXPLANNING STANDPOINT BUT I WOULDN'T SEND IN ANY MONEY NOW SAID GEORGE BARBEE EXECUTIVE DIRECTOR OF CLIENT SERVICES FOR ACCOUNTING FIRM PRICE WATERHOUSE IT'S SORT OF READY AIM HOLD THE TRIGGER THAT WAY IF THE TAX BILL FAILS IN THE SENATE OR IS ALTERED SIGNIFICANTLY THE WORST THAT CAN HAPPEN IS PEOPLE HAVE A LITTLE EXTRA MONEY LEFT SAID CLINT STRETCH OF THE ACCOUNTING FIRM DELOITTE & TOUCHE IN THE MEANTIME HE ADDED THERE'S NO REASON TO MAKE AN INTERESTFREE LOAN TO THE GOVERNMENT INDEED SOME MEMBERS OF CONGRESS HAVE EXPRESSED AN UNEASINESS ABOUT A TAX INCREASE THAT'S RETROACTIVE ESTIMATED TAXES GENERALLY ARE PAID BY PEOPLE WHO ARE SELFEMPLOYED OR HAVE A LARGE AMOUNT OF INVESTMENT INCOME THAT ISN'T SUBJECT TO WITHHOLDING TAXES DURING THE LATEST QUARTERLY FILING PERIOD 68 MILLION PEOPLE PAID ESTIMATED TAXES TOTALING 152 BILLION ACCORDING TO THE INTERNAL REVENUE SERVICE UNDER THE HOUSE BILL THE NEW 396 RATE WOULD BE ASSESSED ON TAXABLE INCOMES ABOVE 250000 AN INCREASE TO 36 WOULD BE LEVIED ON INCOMES GREATER THAN 115000 FOR SINGLE TAXPAYERS AND 140000 FOR MARRIED COUPLES FILING JOINTLY THE TOP CAPITAL GAINS TAX RATE WOULD STAY AT 28 ACCORDING TO DELOITTE & TOUCHE A TYPICAL MARRIED COUPLE WITH 250000 IN TAXABLE INCOME WHO FILE JOINTLY AND CLAIM FOUR EXEMPTIONS WOULD SEE THEIR TAXES CLIMB 5614 TO 71538 UNDER THE BILL A SIMILAR COUPLE EARNING 1 MILLION COULD EXPECT THEIR TAXES TO SOAR 75382 TO 357630 STILL THE OVERALL ECONOMIC IMPACT OF THE MEASURE IS BOUND TO BE SLIGHT IN PART BECAUSE THE HIGHER INCOME TAXES WOULD HIT ONLY ABOUT 12 OF THOSE FILING TAX RETURNS BY HAVING THE TAX INCREASES SKEWED TOWARD UPPERINCOME GROUPS THE MONEY IS MORE LIKELY TO COME OUT OF FUNDS THAT WOULD HAVE BEEN SAVED RATHER THAN USED FOR CONSUMPTION SAID ELLIOTT PLATT DIRECTOR OF ECONOMIC RESEARCH FOR DONALDSON LUFKIN & JENRETTE SECURITIES CORP THAT ATTENUATES THE DRAG ON THE ECONOMY EXPERTS NOTE TOO THAT BECAUSE PRESIDENT CLINTON CAMPAIGNED ON A SOAKTHERICH PLATFORM MANY UPPERINCOME PEOPLE HAVE LONG BEEN PLANNING FOR HIGHER TAXES SUCH PLANNING IS CRUCIAL PARTLY BECAUSE DESPITE THE PROPOSED INCREASE IN TAX RATES THE TREASURY ISN'T GOING TO CHANGE CURRENT WITHHOLDING SCHEDULES IT'S IMPORTANT THAT PEOPLE REALIZE WHAT MAY BE COMING AND ALLOCATE FOR IT SAID LESLIE SAMUELS THE ASSISTANT TREASURY SECRETARY FOR TAX POLICY BUT PEOPLE HAVE BEEN ANTICIPATING THIS SINCE LAST YEAR IT'S NOT A SURPRISE 9306010079 930601 BENETTON EXPECTS RISE IN 1993 SALES TO MATCH THE 91 GAIN IN 1992 SPECIAL TO THE WALL STREET JOURNAL MILAN BENETTON GROUP SPA THE ITALIAN CASUALWEAR MANUFACTURER AND DISTRIBUTOR EXPECTS 1993 SALES TO RISE BY AROUND THE SAME PERCENTAGE AS THE 91 INCREASE RECORDED IN 1992 IN AN INTERVIEW LUCIANO BENETTON VICE CHAIRMAN AND MANAGING DIRECTOR SAID BENETTON GROUP SO FAR HAS MANAGED TO BUCK THE DOWNWARD TREND IN THE INTERNATIONAL APPAREL MARKET BENETTON REPORTED 1992 SALES OF 2513 TRILLION LIRE 170 BILLION UP 91 FROM 2304 TRILLION LIRE IN 1991 AN INCREASE OF AROUND 9 IN 1993 WOULD PUT SALES AT AROUND 2740 TRILLION LIRE THIS YEAR BENETTON HAS SAID IT AIMS TO LIFT SALES TO AROUND 46 TRILLION LIRE OVER THE NEXT FEW YEARS MR BENETTON ADDED THAT HE EXPECTED SALES TO RECEIVE A FURTHER BOOST NEXT YEAR FROM THE LIRA'S SHARP DEPRECIATION SINCE LAST AUTUMN'S EUROPEAN CURRENCY CRISIS UNDER BENETTON'S WORLDWIDE DISTRIBUTION SYSTEM ALL PRODUCTS FOR 1993 HAVE ALREADY BEEN SOLD THROUGH THE RETAIL SALES NETWORK OF FRANCHISED SHOPS SO THAT THE COMPETITIVE ADVANTAGE FROM THE LIRA'S DECLINE WILL BENEFIT SALES IN 1994 AT THE EARLIEST MR BENETTON SAID MR BENETTON ALSO ANNOUNCED THE COMPANY WILL CONTINUE ITS AGGRESSIVE PRICE POLICY FOLLOWING RETAIL PRICE DECLINES OF AS MUCH AS 15 IN 1993 WE WILL CUT PRICES IN ITALY BY 5 IN 1994 AND THANKS TO THE LIRA'S DROP BY MORE THAN 5 ABROAD MR BENETTON SAID 9306010078 930601 BUSINESS BRIEF ASAHI CHEMICAL INDUSTRY CO PRETAX PROFIT TUMBLES 39 SLUGGISH ECONOMY IS CITED ASAHI CHEMICAL INDUSTRY CO REPORTED A 39 DROP IN CONSOLIDATED PRETAX PROFIT TO 3973 BILLION YEN 3693 MILLION FOR THE YEAR ENDED MARCH 31 CITING WEAK CONSUMER DEMAND AND A DECLINE IN CORPORATE INVESTMENT IN PLANTS AND EQUIPMENT FOR THE YEAREARLIER PERIOD THE JAPANESE SYNTHETICFIBER MANUFACTURER REPORTED PRETAX PROFIT OF 6535 BILLION YEN THE COMPANY ALSO REPORTED A 6 DECLINE IN SALES TO 1232 TRILLION YEN 1145 BILLION FROM 1306 TRILLION YEN ASAHI SAID IT CAN'T LOOK FORWARD TO A SPEEDY RECOVERY IN THE DOMESTIC ECONOMY AND PREDICTED A FURTHER DECLINE IN PRETAX PROFIT FOR THE CURRENT FISCAL YEAR IT FORECAST A 30 DROP TO 28 BILLION YEN ON A 2 INCREASE IN SALES TO 1250 TRILLION YEN DIVIDEND FOR THE RECENTLY ENDED YEAR IS UNCHANGED AT NINE YEN EIGHT CENTS 9306010077 930601 TOYOTA US STUDY POSSIBLE DEFECT IN THE 1991 CAMRY BY GREGORY N RACZ STAFF REPORTER OF THE WALL STREET JOURNAL WASHINGTON THE FEDERAL GOVERNMENT AND TOYOTA MOTOR CORP ARE INVESTIGATING A POSSIBLE ELECTRICAL DEFECT THAT MAY IGNITE FIRES IN 1991 TOYOTA CAMRYS THE NATIONAL HIGHWAY TRAFFIC SAFETY ADMINISTRATION CONDUCTED A PRELIMINARY EVALUATION OF A POSSIBLE ELECTRICAL PROBLEM AFTER SOME CONCERNED CONSUMERS PHONED THE CAR SAFETY DEPARTMENT'S HOTLINE LAST YEAR NHTSA SPOKESMAN TIM HURD SAID CONSUMERS AND CAR DEALERS HAVE REPORTED A TOTAL OF 17 FIRES BEHIND THE HEATCONTROL UNIT WHICH IS UNDER THE DASHBOARD AS A RESULT NHTSA HAS DECIDED TO STUDY THE CARS IN GREATER DEPTH TOYOTA ALSO IS PROBING THE VEHICLES FOR A POSSIBLE ELECTRICAL PROBLEM BUT ITS REVIEW WILL REMAIN INDEPENDENT FROM NHTSA'S THE AUTO MAKER WHOSE US HEADQUARTERS IS IN TORRANCE CALIF SOLD ROUGHLY 260000 1991 CAMRYS TOYOTA SPOKESMAN JOHN HANSON ACKNOWLEDGED THERE HAVE BEEN A HANDFUL OF COMPLAINTS BUT TOYOTA SAYS THE 17 REPORTED FIRES MAY INCLUDE AN OVERLAP OF COMPLAINTS BY CONSUMERS WHO CONTACTED BOTH NHTSA AND TOYOTA DEALERS NHTSA ORDERED A THOROUGH INVESTIGATION OF THE 1991 CAMRYS AFTER ITS INITIAL STUDY SPOTTED A SIMILARITY OF BURN PATTERNS AND CONCLUDED THERE MAY BE A COMMON CAUSE FOR THE FIRES UNDER THE DASHBOARD MR HURD SAID THE NEW INVESTIGATION KNOWN AS AN ENGINEERING ANALYSIS WILL CONTINUE UNTIL WE FIND AN ANSWER HE NOTED THAT NHTSA HAS ALREADY DETERMINED THAT ALL OF THE KNOWN FIRES HAPPENED IN CAMRYS THAT WERE MANUFACTURED BETWEEN OCTOBER 1990 AND FEBRUARY 1991 IN 14 CASES THE FIRES OCCURRED WHEN THE CARS WERE PARKED AND THE ENGINES OFF HE SAID AND NO INJURIES HAVE BEEN REPORTED BOTH NHTSA AND TOYOTA BELIEVE THAT A SHORT CIRCUIT BEHIND THE HEATCONTROL UNIT WAS THE MOST LIKELY CAUSE OF THE FIRES THE CAMRY TOYOTA'S MIDSIZE FAMILY SEDAN ROUTINELY WINS HIGH MARKS FOR ITS LACK OF PROBLEMS THE MARKET RESEARCH FIRM JD POWER & ASSOCIATES RANKED THE 1993 TOYOTA CAMRY FOURTH FOR FEWEST FLAWS IN 1991 THE TOYOTA CAMRY PLACED SECOND NHTSA ALSO IS CONDUCTING AN ENGINEERING ANALYSIS INVOLVING 1990 DODGE SHADOWS AND PLYMOUTH SUNDANCES FOR A POSSIBLE STEERING WHEEL DEFECT AFTER A PRELIMINARY STUDY OF THE CHRYSLER CORP CARS NHTSA LEARNED OF FOUR COMPLAINTS OF STEERING WHEELS SEPARATING FROM THE TILT STEERING COLUMN DURING A COLLISION ONLY 10600 OF THE 133000 1990 DODGE SHADOWS AND PLYMOUTH SUNDANCES HAVE TILT UNITS CHRYSLER SPOKESMAN LEE SECHLER SAID WE'RE COOPERATING FULLY IN THEIR INVESTIGATION AS WE ALWAYS DO 9306010076 930601 SOCIETY CORP TO REDEEM NOTES CLEVELAND SOCIETY CORP SAID IT WILL REDEEM ON JUNE 30 ALL 100 MILLION OF ITS 8 5/8 NOTES DUE 1996 AT 100 OF THE PRINCIPAL AMOUNT THE NOTES HAD BEEN ISSUED BY AMERITRUST CORP WHICH THE BANK HOLDING COMPANY ACQUIRED 9306010075 930601 POLITICS & POLICY ALVAREZ IS CONFIRMED AS US REGULATOR OF MORTGAGE FIRMS WASHINGTON THE SENATE CONFIRMED THE NOMINATION OF AIDA ALVAREZ TO HEAD THE NEW OFFICE THAT WILL REGULATE THE FEDERAL NATIONAL MORTGAGE ASSOCIATION AND FEDERAL HOME LOAN MORTGAGE CORP CONGRESS LAST YEAR CREATED THE POST OF DIRECTOR OF THE OFFICE OF FEDERAL HOUSING ENTERPRISE OVERSIGHT AS PART OF A LAW IMPOSING A NEW REGULATORY REGIME OF FINANCIAL SAFETY AND SOUNDNESS ON FANNIE MAE AND FREDDIE MAC FANNIE MAE AND FREDDIE MAC ARE CONGRESSIONALLY CHARTERED SHAREHOLDER COMPANIES THAT HAVE BECOME DOMINANT FORCES IN MORTGAGE FINANCE WHILE BOTH COMPANIES ARE IN EXCELLENT FINANCIAL HEALTH CONGRESS WAS SPURRED BY THE THRIFT CRISIS AND THE GOVERNMENT'S IMPLICIT BACKING OF THE HUGE VOLUME OF FANNIE MAE AND FREDDIE MAC SECURITIES OUTSTANDING TO CREATE A MECHANISM TO ASSURE THEIR FINANCIAL HEALTH OVER TIME THE REGULATOR'S OFFICE WHICH IS DUBBED AN INDEPENDENT POST IS LOCATED WITHIN THE DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT MS ALVAREZ SAID AT HER CONFIRMATION HEARING BEFORE THE SENATE BANKING COMMITTEE THAT WHILE SHE HAS A GREAT DEAL OF RESPECT FOR HUD SECRETARY HENRY CISNEROS I DON'T ENVISION THE SECRETARY HAVING ANY EFFECT FRANKLY ON OUR JUDGMENTS WITH RESPECT TO SAFETY AND SOUNDNESS SHE SAID SHE SEES A LEAN OPERATION THAT WILL RELY HEAVILY AT LEAST INITIALLY ON CONTRACTING OUT THE SENATE ALSO CONFIRMED SEVERAL OTHER HUD NOMINEES ANDREW CUOMO AS ASSISTANT SECRETARY FOR COMMUNITY PLANNING AND DEVELOPMENT MARILYN DAVIS AS ASSISTANT SECRETARY FOR ADMINISTRATION JOSEPH SHULDINER AS ASSISTANT SECRETARY FOR PUBLIC AND INDIAN HOUSING AND MICHAEL STEGMAN AS ASSISTANT SECRETARY FOR POLICY DEVELOPMENT AND RESEARCH 9306010074 930601 BUSINESS BRIEF INTERNATIONAL BUSINESS MACHINES FIRM INCREASES PLANNED SALE OF PREFERRED TO 11 BILLION INTERNATIONAL BUSINESS MACHINES CORP SAID THAT BECAUSE OF INVESTOR DEMAND IT INCREASED THE AMOUNT OF PREFERRED STOCK IT WILL ISSUE TO 11 BILLION FROM 750 MILLION LAST MONDAY IBM SAID IT WOULD OFFER ITS FIRST PREFERRED STOCK EVER AS PART OF A PLAN TO SELL AS MUCH AS 3 BILLION OF LONGTERM DEBT AND PREFERRED STOCK DURING THE NEXT NINE TO 12 MONTHS THE PREFERRED PRICED AT 25 A SHARE PAYS A 75 DIVIDEND IT IS CALLABLE ON OR AFTER JULY 1 2001 AT PAR PROCEEDS FROM THE PREFERRED STOCK AND DEBT OFFERINGS WILL BE USED FOR A VARIETY OF GENERAL CORPORATE PURPOSES IBM BASED IN ARMONK NY ALSO SAID PROCEEDS FROM THE OFFERING COULD BE USED IN PART TO PAY FOR BUYOUT OFFERS TO EMPLOYEES A SPOKESMAN FOR THE COMPUTER MAKER SAID THAT INVESTOR DEMAND SINCE MONDAY HAD EXCEEDED OUR ORIGINAL EXPECTATIONS SO WE INCREASED THE SIZE OF THE OFFERING FROM 750 MILLION TO 11 BILLION 9306010073 930601 LEISURE & ARTS BUSINESS BOOKSHELF RECIPES FOR RADICAL CHANGE BY STANLEY W ANGRIST THINKING OF STARTING A REVOLUTION AT YOUR COMPANY BEFORE YOU DO READ NOEL TICHY AND STRATFORD SHERMAN'S BOOK CONTROL YOUR DESTINY OR SOMEONE ELSE WILL DOUBLEDAY 383 PAGES 24 THERE YOU WILL LEARN IT HELPS TO BE THE CHAIRMAN IF YOU REALLY WANT TO TURN THE COMPANY UPSIDE DOWN THIS IS THE HOMILYFILLED STORY OF JACK WELCH AT GENERAL ELECTRIC CO BETWEEN 1981 AND 1992 HE ACQUIRED BUSINESSES FOR A TOTAL OF 21 BILLION AND SOLD BUSINESSES FOR A TOTAL OF 11 BILLION AND IN THE PROCESS IN ONE WAY OR ANOTHER SAW 300000 PEOPLE LEAVE GE MR WELCH RECOGNIZED LONG BEFORE SOME OTHER CORPORATE LEADERS THAT THEY WERE ALL FACING SIMILAR PROBLEMS LAGGING PRODUCTIVITY AND GLOBAL COMPETITION HE SAW THESE CHANGES FOR WHAT THEY WERE THREATS TO HIS COMPANY'S SURVIVAL WHEN HE BECAME CHAIRMAN JAPANESE COMPANIES WERE BOOSTING PRODUCTIVITY BY 8 ANNUALLY WHILE GE'S GAIN HAD RARELY TOPPED 15 MR WELCH STARTED PROMULGATING SIX IDEAS SO BASIC THEY SEEM SIMPLEMINDED BUT I SUPPOSE IT DOESN'T HURT TO BE REMINDED NOW AND AGAIN TO FACE REALITY AS IT IS NOT AS IT WAS OR AS YOU WISH IT WERE OR TO CHANGE BEFORE YOU HAVE TO HE ADDED ONE ADDITIONAL IMPERATIVE HE INSISTED THAT GE BE NO 1 OR NO 2 IN EVERY BUSINESS IT COMPETED IN AND VOWED TO FIX CLOSE OR SELL ANY THAT DIDN'T MEET THAT STANDARD BY THE TIME HE GOT DONE SELLING BUSINESSES IN COAL MINING SEMICONDUCTOR AND TV SET MANUFACTURING AND ADDING RCA CORP AN INVESTMENT BANK AND OTHER FINANCIALSERVICES ENTERPRISES GE'S RETURN ON EQUITY IN 1991 TOPPED 20 VS 12 FOR THE S&P 500 SUPPOSE YOU START A REVOLUTION IN YOUR COMPANY AND YOU AREN'T THE CEO YOU FAIL AND THOUGH YOU AREN'T EXECUTED YOU ARE TOLD TO FIND A NEW PLACE TO MAN THE BARRICADES MICHAEL DAINARD AUTHOR OF BREAKING FREE FROM CORPORATE BONDAGE DEARBORN 200 PAGES 1795 SAYS DON'T FRET CELEBRATE MR DAINARD FORMERLY DIRECTOR OF MARKETING FOR CBS TELEVISION STATIONS QUIT BECAUSE HE WANTED TO WRITE AND ANSWER ONLY TO HIMSELF UNHAPPINESS AND STRESS CAN KILL YOU EARLY YOU OWE IT TO YOURSELVES AND YOUR FAMILIES TO AT LEAST THINK ABOUT YOUR DREAMS HE SAYS IT IS NEVER TOO LATE RAY KROC WAS IN HIS 50S WHEN HE FOUNDED MCDONALD'S CORP AND JAMES MICHENER DID NOT PUBLISH HIS FIRST BOOK UNTIL HE WAS 40 THE AUTHOR FORCES YOU TO EXAMINE YOUR CURRENT SITUATION POINTING OUT THAT SOME PEOPLE REALLY DON'T WANT TO GIVE UP CORPORATE LIFE BUT JUST NEED A DIFFERENT COMPANY WITH DIFFERENT PEOPLE MR DAINARD ALSO NOTES THAT YOU SHOULD EXPECT LOTS OF CRITICISM FROM COWORKERS FRIENDS AND FAMILY BECAUSE THEY FEEL THREATENED ANOTHER APPROACH TO RADICAL CHANGE IS DETAILED IN MICHAEL HAMMER AND JAMES CHAMPY'S BOOK REENGINEERING THE CORPORATION A MANIFESTO FOR BUSINESS REVOLUTION HARPERBUSINESS 223 PAGES 25 JUST FIXING THINGS DOESN'T ALWAYS HELP THE HEART OF BUSINESS REENGINEERING LIES IN THE NOTION OF WHAT THEY CALL DISCONTINUOUS THINKING IDENTIFYING AND ABANDONING OUTDATED RULES AND ASSUMPTIONS MESSRS HAMMER AND CHAMPY CLAIM THAT EVERY COMPANY IS STUFFED WITH IMPLICIT RULES LEFT OVER FROM EARLIER DECADES SOME YOU MIGHT HEAR AT YOUR FIRM INCLUDE LOCAL WAREHOUSES ARE NECESSARY FOR GOOD SERVICE AND MERCHANDISE DECISIONS ARE MADE AT HEADQUARTERS THEY SAY RULES SUCH AS THESE ARE BASED ON ASSUMPTIONS ABOUT TECHNOLOGY PEOPLE AND ORGANIZATIONAL GOALS THAT NO LONGER HOLD THE AUTHORS DESCRIBE IN DETAIL THREE REENGINEERING PROJECTS AT IBM CREDIT CORP FORD MOTOR CO AND EASTMAN KODAK CO IN EACH CASE THEY SHOW HOW STUDYING THE PROCESS BY WHICH A CERTAIN TASK IS DONE CAN LEAD TO OUTSTANDING RESULTS AT FORD THE ACCOUNTSPAYABLE DEPARTMENT WAS REDESIGNED HERE 500 PEOPLE LABORED ACCORDING TO THE RULE WE PAY WHEN WE RECEIVE THE INVOICE THIS WAS CHANGED TO WE PAY WHEN WE RECEIVE THE GOODS THE INVOICE WAS REPLACED WITH A COMPUTER ENTRY NOTING WHEN THE GOODS REACHED FORD'S RECEIVING DOCK THERE ARE NOW 125 PEOPLE IN ACCOUNTS PAYABLE SUCH CHANGES MAY HELP COMPANIES KEEP THEIR COMPETITIVE EDGE IN THE NEXT DECADE IN POSTCAPITALIST SOCIETY HARPERBUSINESS 232 PAGES 25 MANAGEMENT GURU PETER DRUCKER LOOKS BACK TO A FORGOTTEN HERO AND INTO THE FUTURE IN A JUST WORLD HE SAYS THE POPULAR TRINITY OF MAKERS OF THE MODERN AGE DARWIN MARX AND FREUD WOULD BE RETOOLED TO SUBSTITUTE FREDERICK TAYLOR 18561915 FOR KARL MARX TAYLOR'S STUDY OF WORK AS EMBODIED IN HIS INFLUENTIAL 1911 BOOK PRINCIPLES OF SCIENTIFIC MANAGEMENT HELPED SET OFF THE PRODUCTIVITY EXPLOSION OF THE PAST 100 YEARS TAYLOR HE REMINDS US ARGUED THAT THROUGH RIGOROUS TRAINING UNSKILLED LABORERS COULD BE TURNED INTO SKILLED CRAFTSMEN INDEED DURING WORLD WAR II IN 60 TO 90 DAYS FORMER SHARECROPPERS WERE TURNED INTO FIRSTRATE WELDERS AND PRECISION OPTICAL WORKERS TODAY HOWEVER THE PRODUCTIVITY REVOLUTION STARTED BY TAYLOR HAS BECOME A VICTIM OF ITS OWN SUCCESS TRADITIONAL FACTORS OF PRODUCTION NATURAL RESOURCES LABOR AND CAPITAL HAVE NOT DISAPPEARED BUT ARE NOW OF SECONDARY IMPORTANCE FUTURE GAINS IN LIVING STANDARDS WILL COME FROM THE INCREASING PRODUCTIVITY OF NONMANUAL WORKERS AND THAT REQUIRES APPLYING KNOWLEDGE TO KNOWLEDGE THAT MEANS USING KNOWLEDGE SYSTEMATICALLY TO DEFINE WHAT NEW KNOWLEDGE IS NEEDED WHETHER IT IS FEASIBLE AND WHAT HAS TO BE DONE TO MAKE KNOWLEDGE EFFECTIVE THE GOAL OF THIS ACTIVITY IS SYSTEMATIC INNOVATION 9306010072 930601 INTERNATIONAL BRIEF SWISSAIR SHARES CONTINUE TO CLIMB ON CONCERNS OVER MERGER THE STOCK HAS BEEN FLYING HIGH AS NATIONAL FEELINGS BUILD AGAINST ITS POSSIBLE MERGER WITH KLM ROYAL DUTCH AIRLINES SCANDINAVIAN AIRLINES SYSTEM AND AUSTRIAN AIRLINES ON WEDNESDAY THE SWISS GOVERNMENT TOLD SWISSAIR'S BOARD TO LOOK INTO ALTERNATIVES TO THE CONTEMPLATED FOURAIRLINE AGREEMENT THE GOVERNMENT EXPRESSED CONCERN ABOUT A POSSIBLE LOSS OF SWISSAIR'S INDEPENDENCE INTERVENTION BY THE GOVERNMENT ON WEDNESDAY WAS INTERPRETED BY SOME AS A SIGNAL FOR SWISSAIR TO NEGOTIATE FROM A POSITION OF STRENGTH THEREBY CREATING MORE VALUE FOR SHAREHOLDERS ON FRIDAY SWISSAIR'S REGISTERED SHARES CLOSED AT 665 SWISS FRANCS 46424 UP 40 FRANCS FROM TUESDAY'S FINAL TRADE OF 625 FRANCS ON THE ZURICH STOCK EXCHANGE SINCE THE START OF THE YEAR SWISSAIR STOCK HAS SOARED 48 SWISSAIR ISN'T CONTROLLED BY THE STATE AND IT IS RUN AS A PRIVATE COMPANY HOWEVER GOVERNMENT INSTITUTIONS HOLD 205 OF SWISSAIR'S REGISTERED SHARE CAPITAL THE SWISS GOVERNMENT ALSO LICENSES SWISSAIR 9306010071 930601 MARKETING & MEDIA BASEBALL TEAMS GIVE TELEVISION CONTRACT TO ABC AND NBC NEW YORK MAJOR LEAGUE BASEBALL OWNERS FRIDAY APPROVED A GROUNDBREAKING TELEVISION CONTRACT WITH THE ABC AND NBC NETWORKS IN LIEU OF PAYING STRAIGHT RIGHTS FEES FOR MAJOR LEAGUE GAMES THE TWO NETWORKS WILL FORM A JOINT VENTURE WITH MAJOR LEAGUE BASEBALL TO HANDLE PRODUCTION AND SELL AD TIME THE REVENUE WILL BE DIVIDED AMONG THE THREE PARTNERS THE OWNERS OF THE LEAGUE'S 28 CLUBS VOTED 252 WITH THE BOSTON RED SOX AND NEW YORK METS OWNERS VOTING AGAINST THE PLAN THE NEW YORK YANKEES OWNERS ABSTAINED THE DEAL IS EXPECTED TO RESULT IN SIGNIFICANTLY LESS INCOME FOR BASEBALL WHICH GOT 106 BILLION FOR ITS CURRENT FOURYEAR DEAL WITH CBS INC THE NETWORK LOST AN ESTIMATED 500 MILLION ON THE DEAL BECAUSE OF DECLINING RATINGS AND AD RATES AS PART OF THE NEW PACT BASEBALL WILL CREATE A ROUND OF DIVISIONAL PLAYOFFS ALTHOUGH THAT MUST STILL BE APPROVED BY THE PLAYERS' UNION THE CONTRACT TAKES EFFECT NEXT YEAR AND RUNS FOR SIX YEARS UNDER A COMPLEX REVENUESHARING FORMULA MLB GETS 875 OF THE FIRST 160 MILLION AND EACH NETWORK GETS 625 THE NEXT 30 MILLION IS DIVIDED EQUALLY AMONG THE THREE TO RECOUP STARTUP COSTS REVENUE ABOVE 190 MILLION IS SPLIT WITH 80 GOING TO BASEBALL AND 10 EACH TO THE NETWORKS THE PARTNERS IN THE NEW VENTURE WILL BEGIN A SEARCH FOR A CHIEF EXECUTIVE AND A SALES HEAD THIS WEEK WITH FINALISTS EXPECTED TO BE SELECTED BY JUNE 15 AND AN OFFICE OPENED BY MIDJULY ONE PERSON CONSIDERED TO BE A CANDIDATE IS KENNETH D SCHANZER EXECUTIVE VICE PRESIDENT OF NBC SPORTS NBC IS A UNIT OF GENERAL ELECTRIC CO ABC IS A UNIT OF CAPITAL CITIES/ABC INC 9306010070 930601 INTERNATIONAL FERRUZZIMONTEDISON REPORTS LARGE LOSSES SPECIAL TO THE WALL STREET JOURNAL MILAN ITALY'S FERRUZZIMONTEDISON GROUP REPORTED UNEXPECTEDLY LARGE LOSSES FOR 1992 OMITTED ITS DIVIDENDS AND ANNOUNCED A RESTRUCTURING THE AGROINDUSTRIAL CHEMICAL AND ENERGY GROUP SAID THE FERRUZZI FAMILY DECIDED TO OPEN UP THEIR CLOSELY HELD HOLDING COMPANY SERAFINO FERRUZZI SRL TO OUTSIDE HOLDERS THE RESTRUCTURING WILL MARK THE END OF MAJORITY CONTROL BY THE CHILDREN OF THE LATE FOUNDER SERAFINO FERRUZZI FERRUZZI FINANZIARIA SPA THE GROUP'S KEY HOLDING COMPANY AND MONTEDISON SPA ITS LEADING OPERATING UNIT BOTH BLAMED THE LOSSES ON A SHARP INCREASE IN COSTS OF CARRYING THEIR MOUNTAINOUS DEBTS FERRUZZI FINANZIARIA'S CONSOLIDATED NET LOSS TOTALED 1519 TRILLION LIRE 103 BILLION IN 1992 COMPARED WITH A PROFIT OF 115 BILLION LIRE A YEAR EARLIER MONTEDISON WHICH IS 50OWNED BY FERRUZZI FINANZIARIA SAID ITS CONSOLIDATED LOSS AMOUNTED TO 1244 TRILLION LIRE LAST YEAR COMPARED WITH A PROFIT OF 168 BILLION LIRE IN 1991 FERRUZZI FINANZIARIA SAID NET DEBT TOTALED 15123 TRILLION LIRE AT THE END OF 1992 UP FROM 8801 TRILLION LIRE A YEAR EARLIER THE BULK OF THE INCREASE IN DEBT WAS BECAUSE OF ACQUISITIONS AND CAPITAL INVESTMENTS AT A TIME THE COMPANY HAD ANNOUNCED A MAJOR ASSET SALES PROGRAM FOR 1991 MONTEDISON PAID A DIVIDEND OF 50 LIRE PER ORDINARY SHARE AND 70 LIRE PER SAVINGS SHARE FOR 1991 FERRUZZI PAID A DIVIDEND OF 45 LIRE PER ORDINARY SHARE AND 75 LIRE PER SAVINGS SHARE 9306010069 930601 INTERNATIONAL BRIEF POHANG IRON & STEEL CO SOUTH KOREA'S TAX AGENCY PENALIZES FIRM AND FOUNDER SOUTH KOREA'S TAX AUTHORITY IMPOSED A 793 BILLION WON 98 MILLION PENALTY ON POHANG IRON & STEEL CO AND A 63 BILLION WON PENALTY ON PARK TAE JOON FOUNDER AND FORMER CHAIRMAN WRAPPING UP A THREEMONTH INTENSIVE TAX INVESTIGATION OF POSCO AS THE STEEL GIANT IS KNOWN THE TAX AUTHORITY ALSO SAID THAT IT WILL REFER MR PARK'S CASE TO THE DISTRICT PROSECUTOR'S OFFICE ON CHARGES OF EMBEZZLING COMPANY FUNDS AND RECEIVING KICKBACKS FROM POSCO'S SUBCONTRACTORS A POSCO SPOKESMAN HAS DENIED THERE WAS ANY MISUSE OF FUNDS MR PARK A FORMER COCHAIRMAN OF THE DEMOCRATIC LIBERAL PARTY IS SUSPECTED OF DIVERTING COMPANY FUNDS TO RUN FOR THE DECEMBER PRESIDENTIAL ELECTION WHICH WAS WON BY KIM YOUNG SAM IN A SHOW OF HIS OPPOSITION TO THE PARTY'S NOMINATION OF KIM YOUNG SAM FOR PRESIDENT MR PARK LEFT THE PARTY SHORTLY BEFORE THE ELECTION 9306010068 930601 BUSINESS BRIEFS DIAL CORP SAID ITS GREYHOUND EXPOSITION SERVICES INC UNIT ACQUIRED CLOSELY HELD UNITED EXPOSITION SERVICE CO TERMS WEREN'T DISCLOSED PARLEX CORP AN ELECTRONICS PARTS MAKER IS CUTTING 40 POSITIONS OR 10 OF ITS STAFF PRIMARILY SUPPORT PERSONNEL IN ITS FLEXIBLE CIRCUIT PRODUCTS DIVISION ROADWAY SERVICES INC SAID ITS ROADWAY EXPRESS UNIT HAS FORMED A JOINT VENTURE WITH PRIVATELY HELD TRANSPORTES DE NUEVO LAREDO OF NUEVO LAREDO MEXICO CENTOCOR INC WILL WITHDRAW ITS FOOD AND DRUG ADMINISTRATION PRODUCT LICENSE APPLICATIONS FOR MYOSCINT AND FIBRISCINT TWO IMAGING AGENTS DUE TO CERTAIN DEFICIENCIES FOUND DURING INDEPENDENT AUDITS JOHNSON & HIGGINS AN INSURANCE COMPANY OPENED AN OFFICE IN MOSCOW TO SERVE NORTH AMERICAN AND EUROPEAN CLIENTS MOVING INTO RUSSIA THE OFFICE WILL OPERATE AS A JOINT VENTURE WITH JAUCH & HUBENER A GERMAN INSURANCE COMPANY 9306010067 930601 TECHNOLOGY BRIEF PRODIGY SERVICES CO PACT WITH SIERRA ONLINE TO LINK ELECTRONIC NETWORKS PRODIGY SERVICES CO WHITE PLAINS NY AND SIERRA ONLINE INC OAKHURST CALIF SAID THEY INTEND TO FORM AN ALLIANCE LINKING THEIR ELECTRONIC NETWORKS PRODIGY A PARTNERSHIP OF INTERNATIONAL BUSINESS MACHINES CORP AND SEARS ROEBUCK & CO OPERATES A SERVICE THAT CONNECTS FAMILIES WITH HOME COMPUTERS TO A BROAD RANGE OF INFORMATION AND OTHER SERVICES SIERRA OPERATES A NETWORK THAT PROVIDES ELECTRONIC GAMES AS PART OF THE ALLIANCE PRODIGY AND SIERRA SAID THEY WILL CREATE A LINK SO THAT PRODIGY MEMBERS WILL BE ABLE TO ACCESS A PRODIGY VERSION OF SIERRA NETWORK IN TIME THE TWO PLAN JOINT DEVELOPMENT OF MORE PROPRIETARY SOFTWARE CONTENT THIS IS THE FIRST ALLIANCE BETWEEN TWO MAJOR ONLINE NETWORKS AND WILL ALLOW ONDEMAND ACCESS TO AN UNPRECEDENTED COLLECTION OF ONLINE INFORMATION AND CONTENT THE COMPANIES SAID 9306010066 930601 CREDIT RATINGS SEQUA'S DEBT RATING IS LOWERED NEW YORK MOODY'S INVESTORS SERVICE INC DOWNGRADED ITS RATINGS ON SEQUA CORP'S APPROXIMATELY 500 MILLION OF LONGTERM DEBT RATINGS WERE REDUCED TO SINGLEB2 FROM BA3 FOR SENIOR DEBT AND TO SINGLEB3 FROM SINGLEB2 FOR SUBORDINATED DEBT THE DOWNGRADES REFLECT MOODY'S EXPECTATION FOR WEAK EARNINGS AT SEQUA OVER THE INTERMEDIATE TERM AS WELL AS SEQUA'S REDUCED FINANCIAL FLEXIBILITY BECAUSE OF THE NEW AMENDMENTS TO ITS EXISTING BANK CREDIT AGREEMENT IN WHICH FINANCIAL COVENANTS WERE TIGHTENED SEQUA OFFICIALS COULDN'T BE REACHED FOR COMMENT ABOUT THE DOWNGRADE ACCORDING TO MOODY'S NEARTERM PROFITABILITY FOR SEQUA WILL DEPEND ON WHEN THE COMPANY WILL BE PERMITTED TO FULLY OPERATE AN IMPORTANT FACILITY WHERE PRODUCTION HAS BEEN CURTAILED AS REPORTED SEQUA'S CHROMALLOY RESEARCH & TECHNOLOGY UNIT IS WORKING WITH THE FEDERAL AVIATION ADMINISTRATION TO RESTORE OPERATIONS AT A JETENGINE REPAIR FACILITY CHROMALLOY SUSPENDED WORK AT THE ORANGEBURG NY PLANT AT THE REQUEST OF THE FAA WHICH IS INVESTIGATING POSSIBLE SAFETY PROBLEMS WITH ENGINE PARTS REPAIRED THERE SEQUA MAKES AEROSPACE AND INDUSTRIAL EQUIPMENT AND SPECIALTY CHEMICALS THE COMPANY ALSO PROVIDES TRANSPORTATION AND INDUSTRIAL SERVICES SEPARATELY SEQUA SAID IT SIGNED AN AMENDMENT TO ITS REVOLVING CREDIT AGREEMENT THAT INCREASES ITS BORROWING ABILITY TO ABOUT 170 MILLION FROM 125 MILLION SEQUA ALSO SAID IT PLANS TO BEGIN DISCUSSIONS IN THE NEXT THREE MONTHS TO DEVELOP A REVISED CREDIT FACILITY TO REPLACE THE AGREEMENT EXPIRING JAN 31 1994 9306010065 930601 BUSINESS BRIEF COMERICA INC NORTHPARK NATIONAL BOUGHT FOR 79 MILLION OF COMMON COMERICA INC DETROIT SAID IT ACQUIRED NORTHPARK NATIONAL CORP OF DALLAS FOR ABOUT 79 MILLION OF COMERICA COMMON STOCK NORTHPARK OWNS NORTHPARK NATIONAL BANK OF DALLAS NORTHPARK SHAREHOLDERS WILL RECEIVE 08361 SHARE OF COMERICA STOCK FOR EACH SHARE OF NORTHPARK STOCK COMERICA SAID THE 719 MILLIONASSET BANK WILL MERGE WITH ITS COMERICA BANKTEXAS OPERATIONS LATER THIS YEAR COMERICA OPERATES 28 BRANCHES IN THE DALLAS/FORT WORTH AREA AND IS ADDING 25 BRANCHES ONCE MERGERS IN TEXAS ARE COMPLETED WITH NORTHPARK HIBERNIA NATIONAL BANK AND SUGAR CREEK NATIONAL BANK COMERICA WHICH REPORTED ASSETS OF 26 BILLION AT MARCH 31 ALSO OPERATES BANKS IN MICHIGAN ILLINOIS CALIFORNIA AND FLORIDA RAYMOND D NASHER NORTHPARK'S FOUNDER AND CHAIRMAN WILL BECOME A DIRECTOR AND CHAIRMAN OF COMERICA BANKTEXAS NORTHPARK'S PRESIDENT GEORGE F JONES JR WILL BECOME EXECUTIVE VICE PRESIDENT CORPORATE BANKING FOR COMERICA BANKTEXAS 9306010064 930601 BUSINESS BRIEF ITALMOBILIARE SPA CEMENT UNIT'S NET PROFIT TUMBLED 87 FOR FISCAL YEAR ITALIAN CEMENT GROUP ITALCEMENTI FABBRICHE RIUNITE CEMENTO SPA REPORTED ITS CONSOLIDATED NET PROFIT PLUNGED 87 IN 1992 TO 247 BILLION LIRE 167 MILLION FROM 1845 BILLION LIRE IN 1991 THE COMPANY ATTRIBUTED THE DROP TO HIGHER TAXES AND A DEPRECIATION OF THE VALUE OF ITS ASSETS ITALCEMENTI WHICH IS CONTROLLED BY ITALIAN INDUSTRIALIST GIAMPIERO PESENTI'S HOLDING COMPANY ITALMOBILIARE SPA SAID CASH FLOW ROSE 15 TO 315 BILLION LIRE FROM 273 BILLION LIRE THE COMPANY SAID THE ITALIAN CEMENT MARKET GREW 26 IN 1992 BUT IT NOTED THAT IMPORTS JUMPED 17 TO 33 MILLION TONS OR 75 OF THE DOMESTIC MARKET 9306010063 930601 GERMAN PLANT ORDERS DECLINE FRANKFURT ORDER INFLOWS TO THE WESTERN GERMAN PLANTBUILDING AND MACHINEBUILDING INDUSTRY IN APRIL WERE A PRICEADJUSTED 11 BELOW THE YEAREARLIER LEVEL AN INDUSTRY ASSOCIATION SAID THE GERMAN ASSOCIATION OF MACHINERY AND PLANT BUILDERS SAID DOMESTIC ORDERS FELL 19 FROM A YEAR EARLIER WHILE FOREIGN ORDERS WERE DOWN 3 9306010062 930601 TECHNOLOGY BRIEF DELL COMPUTER CORP MEXICAN PRODUCTION PLANT WILL SUPPLY LATIN AMERICA DELL COMPUTER CORP SAID IT WILL OPEN A PRODUCTION PLANT IN TOLUCA MEXICO TO BUILD PERSONAL COMPUTERS FOR SALE IN LATIN AMERICA THE PLANT THE COMPANY'S SECOND OUTSIDE THE US WILL BE LEASED BY DELL AND WILL ASSEMBLE DESKTOP MODELS AND SERVER SYSTEMS FOR THE COMPANY'S DELL COMPUTER DE MEXICO SALES DIVISION FOR ITS FIRST QUARTER ENDED MAY 2 DELL REPORTED THAT SALES IN MEXICO GREW 64 FROM THE PRECEDING PERIOD LESS THAN 1 OF THE PRODUCTION AT DELL'S AUSTIN ASSEMBLY PLANT WHERE SHIPMENTS TO MEXICO NOW ORIGINATE WILL BE SHIFTED TO TOLUCA WHICH IS NEAR MEXICO CITY THE COMPANY SAID PRODUCTION AT THE NEW PLANT IS SET TO BEGIN IN JULY DELL AUSTIN TEXAS HAS AN ASSEMBLY PLANT IN LIMERICK IRELAND WHICH MAKES PRODUCTS FOR THE EUROPEAN MARKET A SPOKESWOMAN SAID THE COMPANY IS LOOKING TO SET UP A SIMILAR FACILITY IN ASIA 9306010061 930601 BUSINESS BRIEF ALBERTSON'S INC FOOD BROKERS' SUIT CHARGES INTERFERENCE WITH SUPPLIERS NINE INDEPENDENT FOOD BROKERS HAVE SUED ALBERTSON'S INC CHARGING THE GROCERY CHAIN WITH INTERFERING IN AGREEMENTS WITH PRIVATELABEL FOOD SUPPLIERS IN A LAWSUIT FILED EARLY LAST MONTH IN STATE COURT IN SAN ANTONIO TEXAS THE BROKERS CHARGED ALBERTSON'S WITH DISRUPTING THEIR AGREEMENTS WITH FOOD SUPPLIERS THE ALLEGED DISRUPTION OCCURRED WHEN THE GROCERY CHAIN SHIFTED ITS PRIVATELABEL BROKERAGE LAST SEPTEMBER TO FEDERATED FOODS INC ARLINGTON HEIGHTS ILL THE SUIT SAID THE BROKERS BASED IN WESTERN STATES SAID ALBERTSON'S REFUSED TO DO BUSINESS WITH THEM AND USED ITS BUYING POWER TO COMPEL PRIVATELABEL FOOD SUPPLIERS TO SHIFT TO FEDERATED IN BOISE IDAHO AN ALBERTSON'S SPOKESMAN SAID IT HAD MADE FEDERATED ITS MASTER BROKER AND ENCOURAGED SUPPLIERS TO SHIFT TO THE BROKER BUT ALBERTSON'S SAID IT DIDN'T FORCE SUPPLIERS TO SHIFT AND WASN'T INVOLVED IN ANY WRONGDOING THE BROKERS' LAWSUIT SEEKS TRIPLE DAMAGES AND A RESTRAINING ORDER PREVENTING ALBERTSON'S FROM INTERFERING WITH RELATIONSHIPS BETWEEN THE INDEPENDENT BROKERS AND THEIR SUPPLIERS 9306010060 930601 BUSINESS BRIEF SOFTKEY SOFTWARE PRODUCTS INC CHARGE OF 31 MILLION IS SET REFLECTING WORDSTAR MERGER SOFTKEY SOFTWARE PRODUCTS INC SAID IT WILL TAKE A PRETAX CHARGE AGAINST EARNINGS OF 39 MILLION CANADIAN DOLLARS US31 MILLION MAINLY RELATED TO THE PREVIOUSLY ANNOUNCED MERGER OF THE COMPANY WITH WORDSTAR INTERNATIONAL INC SOFTKEY SAID THE CHARGES INCLUDE THE COSTS OF CLOSING ITS CORPORATE HEAD OFFICE IN TORONTO AND ITS OPERATIONS IN BOCA RATON FLA AS PART OF THE PROPOSED MERGER SOFTKEY SAID THE CHARGES TO BE TAKEN IN ITS FISCAL FIRST QUARTER WHICH ENDED APRIL 30 ALSO INCLUDE THE COST OF SELLING ITS CANADIAN SYSTEMS DIVISION TO AN EMPLOYEE GROUP TERMS OF THE SALE WEREN'T DISCLOSED THE DIVISION LAST YEAR CONTRIBUTED ABOUT C7 MILLION TO SOFTKEY'S TOTAL C614 MILLION OF REVENUES THE COMPANY SAID SOFTKEY AND WORDSTAR NOVATO CALIF ARE BOTH COMPUTER SOFTWARE COMPANIES 9306010059 930601 BUSINESS BRIEF AUTOTOTE CORP AGREEMENT REACHED TO BUY ETAG GROUP OF SWITZERLAND AUTOTOTE CORP A NEWARK DEL MAKER OF COMPUTERIZED BETTING EQUIPMENT SAID IT REACHED AN AGREEMENT TO BUY ETAG GROUP OF ZUG SWITZERLAND A SUPPLIER OF BETTINGRELATED AND LOTTERYRELATED EQUIPMENT AND SERVICES IN EUROPE AUTOTOTE SHARES ROSE 2 AFTER THE ANNOUNCEMENT CLOSING AT 4725 IN NATIONAL OVERTHECOUNTER TRADING FRIDAY FINANCIAL TERMS WEREN'T DISCLOSED ETAG GROUP PROVIDES SOFTWARE HARDWARE AND OTHER SERVICES TO MORE THAN 40 RACETRACKS AND OFFTRACK BETTING FACILITIES IN GERMANY AND AUSTRIA AUTOTOTE SAID ITS AFFILIATE TELE CONTROL SUPPLIES CENTRAL COMPUTER SYSTEMS FOR LOTTERIES IN AUSTRIA THE NETHERLANDS AND SWITZERLAND AND IS DESIGNATED AS THE PREFERRED SUPPLIER BY A NUMBER OF OTHER EUROPEAN LOTTERIES THE COMPANY ADDED AUTOTOTE'S CHAIRMAN AND CHIEF EXECUTIVE A LORNE WEIL SAID THE ACQUISITION IS AIMED AT PROVIDING A RECURRING REVENUE STREAM FOR AUTOTOTE THROUGH A SERVICEBASED BUSINESS IN INTERNATIONAL MARKETS 9306010058 930601 NOTABLE & QUOTABLE FROM THE NEED FOR TORT REFORM A REPORT PREPARED BY MARK PULLIAM FOR THE GOLDEN EAGLE CLUB OF SAN DIEGO LIABILITY SEEMS TO BE ASSIGNED IN A WAY THAT IS CAPRICIOUS EVEN WHIMSICAL CONSIDER THESE EXAMPLES A JURY ORDERS AN OUTSIDE RESTAURANT TO PAY MORE THAN 3 MILLION TO A PATRON WHO WAS STUNG BY A BEE AFTER A FATHER WAS CONVICTED OF SEXUALLY ABUSING HIS DAUGHTER A MINNESOTA JURY AWARDS THE GIRL 24 MILLION AGAINST HER MOTHER FOR NEGLIGENTLY FAILING TO PROTECT HER THE AWARD WILL BE PAID FROM THE FAMILY'S INSURANCE COMPANY A NEW YORK MAN WHO DELIBERATELY LEAPT IN FRONT OF A SUBWAY TRAIN SUES THE CITY AND RECOVERS 650000 BECAUSE THE TRAIN DIDN'T STOP IN TIME A PHILADELPHIA JURY AWARDED A WOMAN ALMOST A MILLION DOLLARS BECAUSE SHE CLAIMED A CAT SCAN HAD INTERFERED WITH HER PSYCHIC POWERS THESE ARE NOT ISOLATED PHENOMENA SCHOLARS WHO HAVE STUDIED OUR TORT SYSTEM DEPICT A SYSTEM THAT HAS LOST ITS BEARINGS A SYSTEM THAT WAS DESIGNED TO COMPENSATE TANGIBLE AND SERIOUS INJURIES AT THE EXPENSE OF CULPABLE PARTIES HAS BEEN TRANSFORMED INTO A MECHANISM FOR REDISTRIBUTING INCOME FROM LARGE CORPORATIONS AND INSURANCE COMPANIES TO SELFSTYLED VICTIMS AND CONTINGENT FEE LAWYERS OFTEN IN THE ABSENCE OF ANY BLAMEWORTHY CONDUCT 9306010057 930601 INTERNATIONAL JAPAN CAR MAKERS PLAN TO GIVE US FIGURES ON TRADE BY MASAYOSHI KANABAYASHI AND MICHAEL WILLIAMS STAFF REPORTERS OF THE WALL STREET JOURNAL TOKYO JAPANESE CAR MAKERS WILL PRESENT THE US WITH FIGURES TOMORROW THAT SUGGEST THEY ARE DOING THEIR PART TO CUT JAPAN'S HUGE TRADE SURPLUS THE NUMBERS SHOWING HIGHER PURCHASES OF USMADE AUTO PARTS MAY BURNISH THE IMAGE OF THE JAPANESE ASSEMBLERS IN THE US BUT THE FIGURES MAY ALSO BOLSTER THE POSITION OF TRADE HAWKS IN THE CLINTON ADMINISTRATION WHO ARGUE THAT NEGOTIATING SECTORBYSECTOR TRADE GOALS GETS BETTER RESULTS THAN MAKING GENERAL APPEALS FOR OPEN MARKETS JAPAN'S AUTO MAKERS ARE EXPECTED TO ANNOUNCE IN DETROIT THAT THEY INCREASED THEIR PURCHASES OF USMADE AUTO PARTS BY A HEFTY 29 TO 136 BILLION IN THE YEAR ENDED MARCH 31 THE RISE INDICATES JAPAN IS ON TRACK TO REACH ITS TARGET OF BUYING 19 BILLION OF US VEHICLE PARTS BY 1995 STILL THE LATEST FIGURE REPORTED MONDAY IN THE NIHON KEIZAI SHIMBUN AND CONFIRMED BY A JAPANESE TRADE OFFICIAL MAY NOT PACK TREMENDOUS WALLOP IN TOKYO'S TRADE TUSSLE WITH WASHINGTON BECAUSE ANALYSTS SAY A SIZABLE PORTION OF THAT AMOUNT REPRESENTS PURCHASES FROM JAPANESE SUPPLIERS WITH FACTORIES IN THE US FURTHERMORE PROGRESS TOWARD REACHING THE NUMERICAL IMPORT GOAL COULD RETURN TO HAUNT TOKYO BY ENCOURAGING THE US TO SEEK MORE SUCH TARGETS WE WOULD BE IN TROUBLE IF THE US PUSHED FOR HIGHER QUOTAS COMPLETELY IGNORING ECONOMIC PRINCIPLES SAID A SPOKESMAN FOR TOYOTA MOTOR CORP IN MARCH THE US AND JAPAN RELEASED SALES DATA SHOWING THAT FOREIGN SEMICONDUCTOR MAKERS TOOK A 20 SHARE OF THE JAPANESE CHIP MARKET LAST YEAR AS THE TWO GOVERNMENTS HAD PRESCRIBED IN A TRADE AGREEMENT WASHINGTON WELCOMED THE OUTCOME WHILE TOKYO HAS DENOUNCED THE SEMICONDUCTOR SETASIDES AS A DANGEROUS TRADEDISTORTING PRECEDENT THE US COAXED THE AUTOPARTS GOAL FROM TOKYO WHEN THENPRESIDENT BUSH VISITED JAPAN IN JANUARY 1992WITH EXECUTIVES FROM DETROIT'S AUTO COMPANIES IN TOWTO URGE THE JAPANESE TO IMPORT MORE AMERICAN GOODS TOKYO PRESENTED THE US WITH ESTIMATES THAT JAPAN'S VEHICLE MAKERS WOULD INCREASE THEIR PURCHASES OF AMERICANMADE AUTO PARTS TO 19 BILLION IN THE YEAR ENDING MARCH 31 1995 UP FROM ABOUT 9 BILLION IN THE YEAR ENDED MARCH 31 1991 OF THAT 1995 TARGET ABOUT 4 BILLION WOULD CONSIST OF PARTS IMPORTED TO JAPAN FROM THE US UP FROM 2 BILLION JAPANESE MANUFACTURERS ALSO SAID THEY WOULD SELL IN JAPAN ABOUT 20000 USMADE VEHICLES ANNUALLY BY 1995 THROUGH THEIR DEALERSHIPS HERE JAPANESE POLITICIANS AND AUTO EXECUTIVES HAVE FUDGED THE ISSUE OF WHETHER THE PARTS FIGURES REPRESENT A COMMITMENT OR SIMPLY A GOAL BUT INDUSTRY ANALYSTS SAY THE 19 BILLION FIGURE APPEARS ATTAINABLE BOTH BECAUSE JAPANESE TRANSPLANT FACTORIES IN THE US ARE TURNING OUT MORE CARS AND BUYING MORE USMADE PARTS FOR THEM AND BECAUSE THE STRONG YEN MAKES US PARTS RELATIVELY CHEAPER THAN JAPANESE ONES TOYOTA SAYS IT BOOSTED ITS PURCHASES OF US PARTS 41 TO 443 BILLION IN THE LATEST YEAR NISSAN MOTOR CO REPORTS A 65 INCREASE TO 235 BILLION THE PROCUREMENT REPORT COMES OUT AT A TIME WHEN JAPAN'S TRADE SURPLUS WITH THE US IS SWELLING PARTLY BECAUSE JAPAN'S ECONOMIC SLUMP HAS WEAKENED ITS DEMAND FOR IMPORTS ACCORDING TO JAPANESE GOVERNMENT FIGURES JAPAN POSTED A MERCHANDISE TRADE SURPLUS OF 4611 BILLION WITH THE US FOR THE YEAR ENDED MARCH 31 AUTO TRADE HAS LONG MADE UP THE BIGGEST SINGLE COMPONENT OF THAT SURPLUS CARS AND TRUCKS EXCLUDING AUTO PARTS ACCOUNTED FOR 2161 BILLION OF JAPAN'S TRADE EDGE LAST FISCAL YEAR 9306010055 930601 INTERNATIONAL HONG KONG SEES 95 INFLATION HONG KONG THE COLONY'S GOVERNMENT MAINTAINED ITS PREDICTIONS THAT CONSUMER PRICES WILL RISE 95 IN 1993 EVEN THOUGH HONG KONG'S INFLATION RATE LAGGED BEHIND OFFICIAL FULLYEAR EXPECTATIONS IN THE FIRST QUARTER IN ADDITION GOVERNMENT FORECASTERS PREDICTED IN THEIR QUARTERLY REPORT ON THE ECONOMY THAT GROSS DOMESTIC PRODUCT WOULD EXPAND 55 THIS YEAR ACCORDING TO THE GOVERNMENT GDP ROSE BETWEEN 5 AND 55 IN THE FIRST QUARTER IN MAKING THE ESTIMATES FOR 1993 THE GOVERNMENT ASSUMED THAT CHINA'S MOST FAVORED NATION TRADING STATUS WOULD BE RENEWED BY THE US IT ALSO ASSUMED THAT INTEREST RATES WILL REMAIN AT A RELATIVELY LOW LEVEL MEANING THAT THERE WON'T BE SHARP INCREASES ACCORDING TO AN INDIVIDUAL IN THE GOVERNMENT IN ADDITION THE HONG KONG GOVERNMENT BELIEVES THAT DESPITE CHINA'S VERY FAST ECONOMIC GROWTH AND RISING INFLATION STRONG GROWTH IN TRADE BETWEEN THE COLONY AND THE MAINLAND WILL CONTINUE 9306010054 930601 BUSINESS BRIEF MITSUBISHI MOTORS CORP REDESIGNED GALANT MODEL IS PRICED 8 HIGHER FOR '94 MITSUBISHI MOTOR SALES OF AMERICA INC SAID ITS REDESIGNED 1994 GALANT SEDAN WILL HAVE A BASE PRICE OF 13600 UP 8 FROM THE 1993 MODEL'S BASE PRICE OF 12599 THE MIDSIZE FRONTWHEELDRIVE GALANT IS BEING POSITIONED TO COMPETE AGAINST NISSAN MOTOR CO'S HOTSELLING ALTIMA SEDAN AND HONDA MOTOR CO'S STRUGGLING ACCORD SEDAN THROUGH APRIL MITSUBISHI SOLD 5140 GALANT SEDANS DOWN FROM 7441 A YEAR EARLIER STANDARD FEATURES FOR ALL GALANT MODELS INCLUDE DRIVER AND PASSENGERSIDE AIR BAGS THE GALANT'S BASE ES AND LS MODELS ARE EQUIPPED WITH A 24LITER FOURCYLINDER SINGLE OVERHEADCAM ENGINE MITSUBISHI MOTOR SALES CYPRESS CALIF IS THE US SALES UNIT OF JAPAN'S MITSUBISHI MOTORS CORP 9306010053 930601 TECHNOLOGY BRIEF HEWLETTPACKARD CO NEW ASSOCIATION IS EXPECTED TO SEEK INFRARED STANDARD HEWLETTPACKARD CO IS EXPECTED TO ANNOUNCE TODAY ITS INTENTION TO FORM AN INDUSTRY ASSOCIATION TO HELP ESTABLISH A STANDARD FOR INFRARED COMMUNICATIONS TECHNOLOGY IN COMPUTERS THE PALO ALTO CALIF ELECTRONICS CONCERN SAID IT PLANS TO ENCOURAGE COMPUTER MANUFACTURERS TO USE A WIRELESS SYSTEM OF ITS DESIGN THAT ENABLES DATA TO BE TRANSFERRED AMONG DESKTOP COMPUTERS HANDHELD COMPUTERS PRINTERS AND OTHER COMPONENTS VIA BEAMS OF INFRARED LIGHT HP SAID IT IS PURSUING LICENSING AGREEMENTS WITH SUN MICROSYSTEMS INC INTEL CORP AMERICAN TELEPHONE & TELEGRAPH CO AFFILIATE EO INC AND OTHER COMPANIES THE AGREEMENTS ARE EXPECTED TO HAVE AN INSIGNIFICANT FINANCIAL EFFECT ON HP THE COMPANY SAID RATHER THE GOAL IS TO HELP ESTABLISH A STANDARD THAT WILL EXPAND THE MARKET FOR THE TECHNOLOGY SEPARATELY HP IS EXPECTED TO ANNOUNCE IT WILL BEGIN SELLING IN JUNE NEW MODELS OF ITS VECTRA LINE OF PCS INCLUDING MODELS WITH ENHANCED GRAPHICS FEATURES AND COMMUNICATIONS OPTIONS 9306010052 930601 BUSINESS BRIEF CBL MEDICAL INC IRS CLAIMS TAX DEFICIENCIES OF ABOUT 22 MILLION FOR '91 CBL MEDICAL INC SAID IT RECEIVED A NOTICE FROM THE INTERNAL REVENUE SERVICE ASSERTING TAX DEFICIENCIES OF ABOUT 22 MILLION PLUS PENALTIES AND INTEREST FOR THE YEAR 1991 CBL MEDICAL SAID IT IS CONTESTING THE IRS CLAIM THE LOS ANGELES COMPANY WHICH OPERATES MEDICAL CENTERS SPECIALIZING IN WORKER'S COMPENSATION CASES SAID THE CLAIM ARISES FROM AN ISSUE OF TIMING OF REVENUE AND EXPENSES THE COMPANY SAID THE IRS CLAIM COULD AFFECT PUBLICLY REPORTED FINANCIAL RESULTS ONLY BY THE AMOUNT OF ANY PENALTIES AND INTEREST IF THE IRS PREVAILS APPROPRIATE TAXES HAVE ALREADY BEEN RECOGNIZED IN THE COMPANY'S EARNINGS STATEMENTS IT SAID THE COMPANY SAID THAT IN ANY CASE IT BELIEVED LOSSES AVAILABLE FOR FEDERAL TAX PURPOSES IN 1992 ARE SUFFICIENT TO OFFSET THE PROPOSED 1991 TAX LIABILITY CBL MEDICAL REPORTED NET INCOME OF 616515 OR 23 CENTS A SHARE ON REVENUE OF 123 MILLION FOR 1991 IT REPORTED NET OF 17 MILLION OR 45 CENTS A SHARE ON REVENUE OF 188 MILLION FOR 1992 9306010050 930601 BUSINESS BRIEF LOCKHEED CORP ADVANCED DEVELOPMENT UNIT WILL LOSE 400 EMPLOYEES LOCKHEED CORP SAID IT PLANS TO TERMINATE ABOUT 400 EMPLOYEES OF ITS LOCKHEED ADVANCED DEVELOPMENT CO THE DESIGNER OF SOME OF THE NATION'S MOST SECRET AND ELABORATE AIRCRAFT KNOWN AS THE SKUNK WORKS THE UNIT HAS OVER THE YEARS DEVELOPED AND BUILT THE U2 AND SR71 SPY PLANES AND THE F117 RADAREVADING OR STEALTH FIGHTER AMONG OTHER TRAILBLAZING CRAFT A COMPANY SPOKESMAN SAID EMPLOYEES WERE NOTIFIED TWO WEEKS AGO OF THE PROSPECTIVE REDUCTIONS WHICH WILL AMOUNT TO ABOUT 9 OF THE UNIT'S 4432 EMPLOYEES LOCKHEED OF CALABASAS CALIF EMPLOYS MORE THAN 85000 PEOPLE WORLDWIDE A MAJORITY OF THE REDUCTIONS WILL OCCUR WITHIN THE NEXT 90 DAYS A COMPANY SPOKESMAN SAID MOST OF THOSE TO BE TERMINATED ARE IN ENGINEERING AND ADMINISTRATIVE POSITIONS FURTHER DETAILS WEREN'T AVAILABLE THE LOCKHEED UNIT'S WORK IS GENERALLY TOP SECRET BUT THE PENDING TERMINATIONS AND THE TYPES OF POSITIONS BEING LAID OFF SUGGEST DIMINISHED NEW BUSINESS AS SOCALLED BLACK DEFENSE PROGRAMS ARE PARED A REPORT OF THE LAYOFFS FIRST APPEARED IN THE LOS ANGELES TIMES 9306010049 930601 BUSINESS BRIEF AMERICAN HEALTH PROPERTIES INC CHARGE OF 19 MILLION SET TO RESOLVE SHAREHOLDER SUITS AMERICAN HEALTH PROPERTIES INC SAID IT SETTLED TWO SHAREHOLDER CLASSACTION LAWSUITS AND WILL TAKE A 19 MILLION CHARGE TO COVER THE COSTS OF THE SETTLEMENT THE DENVER REAL ESTATE INVESTMENT TRUST ALSO SAID IT FILED A REGISTRATION STATEMENT WITH THE SECURITIES AND EXCHANGE COMMISSION FOR A SECONDARY OFFERING OF THREE MILLION COMMON SHARES AMERICAN HEALTH WHICH OWNS HEALTHCARE FACILITIES WAS SUED IN AUGUST 1992 AFTER IT TOOK A 45 MILLION WRITEDOWN ON TWO PSYCHIATRIC HOSPITAL LOANS IN THE SUITS SHAREHOLDERS ACCUSED THE COMPANY ITS OFFICERS AND DIRECTORS OF FAILING TO DISCLOSE THE WRITEDOWN IN A TIMELY AND COMPLETE FASHION ACCORDING TO GEOFFREY LEWIS AN AMERICAN HEALTH VICE PRESIDENT WITHOUT ADMITTING ANY WRONGDOING THE COMPANY SAID IT WILL PAY 27 MILLION AS ITS SHARE OF THE SETTLEMENT IT PREVIOUSLY HAD SET ASIDE RESERVES OF 800000 IN THE FOURTH QUARTER OF 1992 AND THE FIRST QUARTER OF 1993 AND WILL TAKE THE ADDITIONAL CHARGE OF 19 MILLION OR 11 CENTS A SHARE IN THE SECOND QUARTER THE SETTLEMENT IS SUBJECT TO A FORMAL AGREEMENT AND TO COURT APPROVAL 9306010048 930601 BUSINESS BRIEF TELECOM CORP COMPANY AND TOP OFFICIALS BUY BACK SHARES FROM TRUST TELECOM CORP AND A GROUP OF OFFICERS AND DIRECTORS HAVE BOUGHT ABOUT ONE MILLION SHARES OF TELECOM COMMON STOCK THE COMPANY SAID A MOVE THAT REDUCES THE NUMBER OF SHARES OUTSTANDING BY 23 THE STOCK WAS PURCHASED AT 294 A SHARE FROM DALLASBASED RIVER VIEW TRUST BIG BOARD TRADING IN THE STOCK WAS HALTED ON FRIDAY AND DIDN'T RESUME THE STOCK LAST TRADED AT 250 A SHARE UNCHANGED LAWRENCE W SCHUMANN CHAIRMAN AND CHIEF EXECUTIVE OFFICER SAID TELECOM A HOLDING COMPANY WITH INTERESTS IN EQUIPMENT MANUFACTURING AND THE DISTRIBUTION OF AIR CONDITIONING AND HEATING PRODUCTS PURCHASED 867619 OF THE SHARES THE REMAINING 153000 SHARES WERE PURCHASED BY MR SCHUMANN AND A LIMITED PARTNERSHIP HE CONTROLS AS WELL AS LARRY T MAREK EXECUTIVE VICE PRESIDENT AND WILLIAM E CALLAHAN A DIRECTOR OUTSTANDING SHARES AFTER THE TRANSACTION TOTAL 2831101 TELECOM IS BASED IN DALLAS 9306010047 930601 CREDIT RATINGS IMC FERTILIZER GROUP NORTHBROOK ILL STANDARD & POOR'S CORP AND MOODY'S INVESTORS SERVICE INC DOWNGRADED ABOUT 290 MILLION OF LONGTERM DEBT ISSUED BY THIS MAKER OF CHEMICAL FERTILIZERS AND ITS IMC FERTILIZER INC SUBSIDIARY THE RATING AGENCIES CITED THE RECENT SETTLEMENT OF A SUIT IN WHICH IMC AGREED TO PAY ANGUS CHEMICAL CO AND ITS INSURERS 180 MILLION OVER THREE YEARS AS WELL AS UNRESOLVED LITIGATION IN LOUISIANA RELATING TO A 1991 EXPLOSION OF AN ANGUS CHEMICAL PLANT THAT WAS BEING OPERATED BY IMC THE FACT THAT WORLDWIDE PRICES FOR MANY FERTILIZERS ARE AT THEIR LOWEST LEVELS IN NEARLY TWO DECADES ALSO WAS A FACTOR IN THE DOWNGRADINGS THE AGENCIES SAID S&P SAID IT LOWERED ITS RATING ON IMC'S SENIOR AND SUBORDINATED DEBT TO SINGLEB FROM DOUBLEBMINUS IT ALSO LOWERED THE RATING ON IMC FERTILIZER INC'S SENIOR INDUSTRIAL REVENUE BONDS TO DOUBLEBMINUS FROM DOUBLEBPLUS MOODY'S SAID IT LOWERED THE SENIOR AND SUBORDINATED DEBT TO B3 FROM B1 AND CUT THE REVENUE BONDS TO B3 FROM BA3 LIFE PARTNERS GROUP INC DALLAS MOODY'S INVESTORS SERVICE INC SAID IT UPGRADED THE INSURANCE HOLDING COMPANY'S SENIOR SUBORDINATED NOTES TO BA3 FROM SINGLEB1 THE NOTES ARE DUE IN 2002 AND HAVE A COUPON OF 1275 ABOUT 100 MILLION OF DEBT IS AFFECTED 9306010046 930601 TONY LEWIS'S 5000 BY WILLIAM E SIMON TWICE DURING THE PAST SIX YEARS THE GOOD NAMES AND LIFETIME REPUTATIONS OF DISTINGUISHED AMERICANS WERE HORRIBLY DEFAMED DURING SUPREME COURT CONFIRMATION HEARINGS THE HEARINGS OF ROBERT BORK AND CLARENCE THOMAS WERE AMONG THE MOST DISGUSTING EPISODES IN OUR HISTORY AND THEY DEMONSTRATED PAINFULLY AND DRAMATICALLY WHY SO MANY GOOD AND HONORABLE PEOPLE SHUN GOVERNMENT SERVICE ROBERT BORK IS A BRILLIANT JURIST LEGAL MIND AND SCHOLAR WHOSE QUALIFICATIONS AND EXPERIENCE ARE WITHOUT PEER FORMER CHIEF JUSTICE WARREN BURGER STATED THAT HE HAD NOT SEEN A BETTER NOMINATION IN MORE THAN 50 YEARS YET JUDGE BORK WAS VILIFIED AND CARICATURED AS A RACIST AND SEXIST OF THE RADICAL RIGHT CLARENCE THOMAS FOR HIS PART WAS CERTAINLY RIGHT TO CALL HIS OWN HEARING A HIGHTECH LYNCHING DURING THE HEARINGS AND SINCE THEN THE MEDIA HAVE ADHERED TO A TROUBLING DOUBLE STANDARD ON JUSTICE THOMAS WRITERS SUCH AS ANTHONY LEWIS CHEERED WHEN THE ENEMIES OF CLARENCE THOMAS SCRAPED THE BOTTOM OF THE ETHICAL BARREL AN EXAMPLE OF THAT DOUBLE STANDARD FROM MY OWN EXPERIENCE AN IMPRESSIVE NEW BOOK BY DAVID BROCK THE REAL ANITA HILL THE UNTOLD STORY HAS BROUGHT TO LIGHT WHAT COLUMNIST GEORGE WILL CALLS AN AVALANCHE OF EVIDENCE THAT MS HILL WAS NOT TRUTHFUL ABOUT HER CAREER OR HER RELATIONS WITH CLARENCE THOMAS THE BOOK IS A CLOSELY ARGUED INVESTIGATION BASED ON DOCUMENTARY SOURCES AND MANY INTERVIEWS MR LEWIS REACTED BY SCREAMING FOUL HE CALLED DAVID BROCK'S BOOK SLEAZE WITH FOOTNOTES AN ATTEMPT TO DO TO MR BROCK WHAT HE AND HIS ASSOCIATES HAD TRIED TO DO TO JUSTICE THOMAS MR LEWIS ALSO PERSONALLY CRITICIZED ME IN MY POSITION AS PRESIDENT OF THE JOHN M OLIN FOUNDATION AND AS A SUPPORTER OF JUSTICE THOMAS BECAUSE OUR FOUNDATION APPROVED A GRANT OF 5000 TO HELP DEFRAY MR BROCK'S RESEARCH EXPENSES WELL I'M DARN PROUD WE DID FOR ANTHONY LEWIS TO APPROPRIATE THE MANTLE OF OBJECTIVITY WHILE DENOUNCING ANYONE WHO DEFENDS CLARENCE THOMAS IS THE HEIGHT OF HYPOCRISY MR LEWIS'S COLUMN WAS BASED ON AN ARTICLE PUBLISHED IN THE MAY 24 ISSUE OF THE NEW YORKER BY JANE MAYER AND JILL ABRAMSON TWO REPORTERS FOR THE WALL STREET JOURNAL WHO ARE THEMSELVES WORKING ON A BOOK ON THE THOMAS HEARINGS WHILE THEY HAVE VARIOUS CRITICISMS OF MR BROCK'S BOOK TO WHICH HE HAS REPLIED THEY ALSO TRY TO CAST DOUBT ON HIS MOTIVES WHEN THEY NOTE THAT CONSERVATIVE FUNDERS HELPED TO BANKROLL HIS BOOK THE SUGGESTION IS THAT IT IS EVIL FOR ANYONE TO ACCEPT HELP FROM CONSERVATIVE FUNDERS THE TERM HELPED TO BANKROLL IS STRONG MS MAYER AND MS ABRAMSON WERE INFORMED TWICE BY MY OFFICE THAT THE FOUNDATION'S CONTRIBUTION CONSISTED OF A MERE 5000 OBVIOUSLY MR BROCK COULD HAVE WRITTEN HIS BOOK WITHOUT OUR HELP BUT THEY DID NOT REPORT THE AMOUNT IN THE NEW YORKER IT IS ONE OF THE PRIMARY FUNCTIONS OF PRIVATE FOUNDATIONS TO SUPPORT BOOKS AND RESEARCH ON SUBJECTS OF PUBLIC INTEREST OUR FOUNDATION WAS ESTABLISHED BY THE LATE JOHN M OLIN WITH THE MISSION TO SUPPORT INDIVIDUALS AND INSTITUTIONS COMMITTED TO STRENGTHENING THE FREE ENTERPRISE SYSTEM OTHER FOUNDATIONS SUCH AS THE FORD AND ROCKEFELLER FOUNDATIONS HAVE DIFFERENT MISSIONS AND WHILE WE MAY SOMETIMES DISAGREE WITH THEIR PHILOSOPHY WE RESPECT THEIR RIGHT TO DIRECT FUNDS TO SUBJECTS THEY THINK ARE IMPORTANT WE WOULD ALL BE LOSERS IF FOUNDATIONS DECIDED THAT THEY ALL HAD TO MARCH IN LOCKSTEP ON THE QUESTION OF BOOKS THE OLIN FOUNDATION NEITHER ASKS FOR NOR EXERCISES ANY EDITORIAL INFLUENCE OVER THOSE IT HELPS FUND THE OLIN FOUNDATION ALSO SUPPORTS SCHOLARLY PROGRAMS AT MANY OF THE NATION'S FINEST UNIVERSITIES BARELY TWO MONTHS AGO IN FACT ANTHONY LEWIS HIMSELF WAS A SPEAKER IN A JOHN M OLIN LECTURE SERIES ON NATIONAL SECURITY AFFAIRS AT THE US AIR FORCE ACADEMY FOR WHICH HE ACCEPTED 5000 AN AMOUNT IDENTICAL TO THE GRANT RECEIVED BY DAVID BROCK IN THAT SPEECH MR LEWIS PRESENTED THE CADETS WITH HIS VIEWS ON FOREIGN POLICY AND THE CADETS IN TURN SUBJECTED HIM TO SOME SHARP ALBEIT COURTEOUS QUESTIONING NO ONE FROM OUR FOUNDATION TOLD MR LEWIS WHAT TO SAY OR CRITICIZED HIM FOR SAYING IT SIMPLE CONSISTENCY DEMANDS THAT MESSRS BROCK AND LEWIS BE HELD TO THE SAME STANDARD IF MR LEWIS FEELS SO STRONGLY ABOUT SUPPORT FROM THE OLIN FOUNDATION WHY DID HE ACCEPT OUR 5000 AT THE AIR FORCE ACADEMY MR BROCK'S BOOK AS WELL AS MR LEWIS'S OPINIONS SHOULD BE JUDGED ENTIRELY ON THE MERITS OF ITS ARGUMENTS OUR SMALL CONTRIBUTION TO MR BROCK'S BOOK IS TOTALLY IRRELEVANT TO ITS VALUE AS A HISTORY OF THE THOMAS HEARINGS THE BOOK WILL STAND OR FALL ON THE STRENGTH OF THE CASE IT MAKES AND READERS WILL JUDGE IT ACCORDINGLY IN THIS SENSE MR LEWIS'S BEEF IS NOT WITH MR BROCK OR WITH ME BUT WITH THE THOUSANDS OF READERS ACROSS THE COUNTRY WHO ARE BUYING THE BOOK AND DRIVING IT TO THE TOP OF THE BESTSELLER LISTS IT IS WORTH NOTING AS WELL THAT MANY SERIOUS REVIEWERS HAVE COMMENTED FAVORABLY ON MR BROCK'S BOOK THE REVIEWER FOR THE TIMES CHRISTOPHER LEHMANNHAUPT WHILE NOT ACCEPTING ALL OF MR BROCK'S OBSERVATIONS CONCLUDED THAT HE HAS WRITTEN AN IMPRESSIVE INVESTIGATIVE STUDY AND THAT HIS BOOK IS EXTREMELY DAMAGING TO ANITA HILL'S CASE OTHER RESPECTED REVIEWERS SUCH AS DAVID GARROW IN NEWSDAY AND JONATHAN GRONER IN THE WASHINGTON POST REACHED SIMILAR CONCLUSIONS FOR TOO LONG LIBERALS LIKE ANTHONY LEWIS HAVE BEEN ALLOWED TO GET AWAY WITH UNSUBSTANTIATED HITANDRUN ACCUSATIONS WHICH HAVE LEFT THEIR VICTIMS BLEEDING ON THE SIDE OF THE ROAD THEIR LICENSE TO LIE SHOULD BE REVOKED MR SIMON FORMER TREASURY SECRETARY IS PRESIDENT OF THE JOHN M OLIN FOUNDATION 9306010045 930601 NEW MOVIES WORTH SEEING BY JULIE SALAMON IT HAS THE SPIRIT AND EMOTIONALITY OF A GOOD BROADWAY MUSICAL ONLY THE BIG SET PIECES AREN'T SONGANDDANCE NUMBERS BUT KUNG FU FIGHTS TAKEN FROM A BOOK WRITTEN BY BRUCE LEE'S WIFE THE MOVIE DOESN'T PLUMB THE DARK SIDE THIS IS POPCORN AN ENJOYABLE BIOPIC DONE WITH SURPRISING INTELLIGENCE AND AFFECTION THOUGH IT ISN'T NECESSARY TO KNOW ANYTHING AT ALL ABOUT HOW FILMS ARE MADE TO ENJOY THEM THE TECHNICAL SIDE OF MOVIES CAN HAVE MAGIC TOO THAT'S MADE VERY CLEAR IN THIS FASCINATING AND ENJOYABLE DOCUMENTARY ABOUT THE WORK CINEMATOGRAPHERS DO AFTER LISTENING TO THE MOST TALENTED CRAFTSMEN IN THE BUSINESS TALK ABOUT THEIR WORK AND SEEING SNIPPETS OF WHAT THEY'RE TALKING ABOUT YOU'LL LOOK AT MOVIES YOU'VE KNOWN FOREVER AS IF THEY WERE SOMETHING NEW THIS AMIABLE COMEDY ABOUT A REGULAR GUY WHO GETS TO PRETEND TO BE PRESIDENT IS POLITICALLY SILLY BUT VERY ENTERTAINING MR KLINE IS VERY CHARMING AS THE OUTSIDER WHO SHOWS BELTWAY POLS HOW COMMON SENSE AND A DECENT HEART CAN MAKE GOOD GOVERNMENT HE'S SO NICE HE MAKES THE FIRST LADY PLAYED BY MS WEAVER WITH HER USUAL ELEGANCE AND INTELLIGENCE WISH SHE DIDN'T HAVE HER OWN BEDROOM BY MAKING THEIR WESTERN HEROES BLACK WITH A TOKEN WHITE AMONG THEM MR VAN PEEBLES AND SCREENWRITERS SY RICHARDSON AND DARIO SCARDAPANE HAVE REINVENTED THE FORM WHAT MAKES THE PICTURE INTERESTING AS WELL AS ENTERTAINING SOMETHING NEW AND NOT JUST ANOTHER WESTERN IS THE BLACK PERSPECTIVE MR BRANAGH HAS MADE SHAKESPEARE'S MUCH ADO INTO A GREAT SUMMER PICTURE A GIDDY LIGHTHEARTED POSTBEACH ENTERTAINMENT WHO WOULD HAVE THOUGHT IT BUT DON'T WORRY THIS ISN'T THE RAP VERSION IT'S JUST THAT YOU CAN TELL WHAT KIND OF KICK MR BRANAGH GETS OUT OF SHAKESPEARE HE WANTS US TO GIGGLE WITH DELIGHT AND WE DO THIS PICTURE ABOUT A WOMAN'S JOURNEY THROUGH THE CHINESE BUREAUCRACY IS CONSTRUCTED LIKE AN EXQUISITE SHORT STORY IT'S A FABLE THAT MANAGES TO ADDRESS THE BIGGEST QUESTIONS ABOUT JUSTICE AND HUMANITY AND TO ANSWER THEM WITHIN THE CONFINES OF A VERY SMALL TALE OF REVENGE IT'S WISE AND ALSO FUNNY MR ZHANG'S SIGNATURE IS EASY TO SEE THE SEDUCTIVE STYLE THAT CONTEMPLATES AND HEIGHTENS THE PAGEANTRY OF EVERYDAY LIFE ONE SEES CHINA HIS WAY AS CONFORMITY INTERRUPTED BY HOT FLASHES OF PASSION 9306010044 930601 LABOR LETTER A SPECIAL NEWS REPORT ON PEOPLE AND THEIR JOBS IN OFFICES FIELDS AND FACTORIES BY ALBERT R KARR MODEST HIRING APPEARS TO BE IN STORE FOR THE MONTHS AHEAD LEGENT CORP A VIENNA VA SOFTWARE MAKER PLANS TO ADD UP TO 65 SALESPEOPLE AND OTHERS BY YEAR END DELL COMPUTER WILL CONTINUE HIRING BUT THE PACE LIKE REVENUE GAINS MAY SLOW HAYES WHEELS INTERNATIONAL WILL HIRE ABOUT 100 WORKERS AT A NEW PLANT AS AUTO BUSINESS PERKS UP IN A MANPOWER SURVEY 25 OF EMPLOYERS PLAN THIRDQUARTER BOOSTS 8 SEE CUTS A SMALL RISE IS PLANNED BY CRSS INC A HOUSTONBASED ARCHITECTURALDESIGN FIRM BUT MERRILL LYNCH FOOD MARKETER CPC INTERNATIONAL FIRST BRANDS DANBURY CONN AND ATMOS ENERGY A GAS UTILITY IN DALLAS SEE LITTLE CHANGE DANA CORP MAY RAISE OVERTIME WHILE LUFKIN INDUSTRIES AN OILFIELD EQUIPMENT MAKER PLANS LAYOFFS ANNOUNCED LAYOFFS SO FAR THIS YEAR OUTPACE 1992 BUT THEY FELL 55 IN MAY FROM APRIL SAYS PLACEMENT FIRM CHALLENGER GRAY & CHRISTMAS THE GAP IS GONE FACTORY LABOR COSTS IN JAPAN CLIMB TO THE US LEVEL MANUFACTURING WORKERS' COMPENSATION REFLECTING CURRENCYEXCHANGE RATES AT THE TIME ROSE 11 IN JAPAN TO AN AVERAGE 1616 AN HOUR IN 1992 AS EARNINGS GAINS CONTINUED TO OUTSTRIP THOSE IN THE US A LABOR DEPARTMENT REPORT SHOWS US PAY ROSE 4 TO 1617 THIS YEAR WITH A STRONGER YEN JAPANESE OUTPUT PAY IS FORGING AHEAD BUT THE US TRADE DEFICIT WITH JAPAN WIDENS SAYS AFLCIO ECONOMIST RUDY OSWALD OF THE 29 NATIONS COVERED HOURLY LABOR COSTS IN THE US RANKED 13TH LAST YEAR BEHIND CANADA AND EUROPEAN COUNTRIES INCLUDING GERMANY'S LEADING 2594 DESPITE BIG INCREASES SOUTH KOREA LAGGED AT 493 AN HOUR AND TAIWAN AVERAGED 519 HOURLY PAY SURGED 21 IN MEXICO TO 235 NEW VOLUNTEERS FLOOD HOSPITALS IN A TOUGH JOB MARKET MORE MINORITIES IMMIGRANTS TEENAGERS YOUNG ADULTS AND EVEN PROFESSIONALS WITH FULLTIME JOBS ARE PUBLICSERVICE MINDED THE AMERICAN HOSPITAL ASSOCIATION SAYS BUDGETMINDED CALIFORNIA PACIFIC MEDICAL CENTER RELIES MORE ON VOLUNTEERS THE SUPPLY MORE THAN DOUBLED SINCE 1990 MASSACHUSETTS GENERAL HOSPITAL CLOSED ITS DOORS TO VOLUNTEERS THREE TIMES IN THE LAST YEAR RISING JOBLESSNESS BOOSTS APPLICATIONS MAINE MEDICAL CENTER SEES MORE MEN AND MORE UNEMPLOYED VOLUNTEERS VOLUNTEERS AT HOUSTON'S MD ANDERSON CANCER CENTER DONATED 308569 HOURS LAST YEAR UP 29 FROM 1991 HOSPITALS ADJUST TO THE SHORTTERM WORK SOUGHT BY THE NEW VOLUNTEERS MANY VOLUNTEERS SEEK NIGHT OR WEEKEND WORK UNLIKE RETIREES AND HOUSEWIVES OF OLD YOUTHS OFTEN CONSIDER VOLUNTEERISM FOR COLLEGE OR CAREER RESUMES BILLING ITSELF AS THE NATION'S FIRST EXECUTIVE SEARCH FIRM SPECIALIZING IN FINDING GAY AND LESBIAN RECRUITS MCCORMACK & ASSOCIATES LOS ANGELES THINKS MANY EMPLOYERS WILL TAKE A CUE FROM PRESIDENT CLINTON'S MILITARY EFFORTS BUT FOUNDER JOSEPH MCCORMACK SAYS FULLSCALE AFFIRMATIVEACTION HIRING IS STILL DOWN THE ROAD A NEW HAZARD STRIKING HOTEL AND RESTAURANT EMPLOYEES UNION WORKERS SAY THEY WILL DISRUPT PLAY OF THE BUICK CLASSIC GOLF TOURNAMENT JUNE 1013 AT THE WESTCHESTER NY COUNTRY CLUB A HARRISON TOWN JUSTICE HAS ORDERED 17 OF THE MOSTLY BLACK AND HISPANIC STRIKERS EVICTED FROM THEIR QUARTERS AT THE CLUB THE GERMAN EMBASSY IN WASHINGTON TWO CONSULATES AND US BMW DEALERS ARE TO BE PICKETED BY LABOR UNIONS TODAY TO PROTEST BMW'S THIRD WORLD TREATMENT OF THE US BMW UNIONIZED IN GERMANY USES OR ENVISIONS LOWWAGE NONUNION LABOR TO BUILD A NEW PLANT IN SOUTH CAROLINA AND TURN OUT CARS THERE UNIONS SAY DISABILITY CLAIMS BY US EMPLOYEES ROSE 23 IN 1992 OVER 1989 ACCORDING TO FINDINGS IN 150 INDUSTRIES TRACKED BY DISABILITY INSURER UNUM CORP THE INCREASE REFLECTS MORE MENTAL DISORDERS LIKE DEPRESSION AND ANXIETY AND EMERGING DISABILITIES SUCH AS EPSTEINBARRE SYNDROME AND HANDCRIPPLING CARPAL TUNNEL SYNDROME UNUM SAYS SO SAYS A SPOKESMAN FOR EQUIFAX AN ATLANTABASED CREDIT REPORTING FIRM WHICH LAST MONTH BOOSTED ITS EMPLOYEE INVESTMENT OPTIONS TO EIGHT FROM FIVE BUT SINCE THE LABOR DEPARTMENT LAST FALL ISSUED RULES ENCOURAGING MORE WORKER CONTROL OVER PLAN INVESTMENTS MANY EMPLOYERS LIKE SALICK HEALTH CARE BEVERLY HILLS CALIF AND ABBEY HEALTHCARE GROUP COSTA MESA CALIF STILL OFFER ONLY FIVE CHOICES ROHR AND JC PENNEY STAY AT THREE ANY MORE THAN FIVE FOR THE 401K OR OTHER PLANS CONFUSES PEOPLE AND SOME DON'T PARTICIPATE BECAUSE THEY CAN'T MAKE UP THEIR MINDS SAYS TUCSON ELECTRIC POWER SPOKESMAN JAY GONZALEZ AMERICAN HEALTH PROPERTIES DENVER EXPANDED TO FOUR OPTIONS FROM ONE IN 1991 AND MAY EXPAND AGAIN THIS SPRING DUKE POWER WENT TO SIX FROM TWO BUT SAYS IT WILL STOP THERE SO INVESTING ISN'T MIND BOGGLING ACCOUNTANT COOPERS & LYBRAND JOINS WITH BROKER CHARLES SCHWAB TO PROVIDE OVER 600 MUTUALFUND CHOICES BUT FIGURES MOST COMPANIES WILL PICK FOUR OR FIVE THE CHECKOFF THE LABOR DEPARTMENT MAY AVOID NAMING A NEW SCHOOLTOWORK PROPOSAL AN APPRENTICESHIP PLAN BECAUSE UNIONS CLAIM A LOCK ON THE APPRENTICESHIP NOTION NATIONAL ASSOCIATION OF TRUCK STOP OPERATORS VOTES 13580 TO CALL THE GROUP THE NATIONAL ASSOCIATION OF TRAVEL CENTERS BUT THE NATSO BOARD DELAYS A FINAL DECISION ON THE POTENTIALLY DIVISIVE ISSUE 9306010043 930601 BUSINESS BRIEF INTERNATIONAL THOROUGHBRED CONVERSION RIGHTS EXPIRE JULY 31 FOR PREFERRED STOCK RACETRACK OWNER INTERNATIONAL THOROUGHBRED BREEDERS INC CHERRY HILL NJ SAID THE CONVERSION RIGHTS FOR ITS PREFERRED STOCK WILL EXPIRE JULY 31 EACH PREFERRED SHARE IS CONVERTIBLE INTO ONEHALF SHARE OF COMMON STOCK INTERNATIONAL THOROUGHBRED SAID IT IS UNLIKELY THAT HOLDERS WHO DON'T CONVERT THEIR PREFERRED SHARES WILL RECEIVE ANY DIVIDENDS WHICH ARE BASED ON INCOME FROM THE COMPANY'S GARDEN STATE PARK RACE TRACK IN NEW JERSEY OR PROCEEDS FROM THE EXPECTED SALE OF THE TRACK THE COMPANY LAST MONTH SAID IT PLANS TO SELL THE RACE TRACK INTERNATIONAL THOROUGHBRED SAID THE TRACK'S BOOK VALUE IS ABOUT 137 MILLION AND SALE PROCEEDS WOULD HAVE TO EXCEED THAT AMOUNT AFTER MANAGEMENT FEES AND INTEREST EXPENSE IN ORDER TO PRODUCE ANY INCOME FOR DIVIDENDS TO PREFERRED HOLDERS FURTHER PREFERRED HOLDERS DON'T HAVE LIQUIDATION RIGHTS FOR THE TRACK'S SALE LIQUIDATION RIGHTS APPLY ONLY FOR THE LIQUIDATION OF THE COMPANY ITSELF AND INTERNATIONAL THOROUGHBRED SAID MANAGEMENT HAD NO INTENTION OF LIQUIDATING THE COMPANY 9306010042 930601 NEW SECURITIES ISSUES THE FOLLOWING WERE AMONG FRIDAY'S OFFERINGS AND PRICINGS IN US AND NONUS CAPITAL MARKETS WITH TERMS AND SYNDICATE MANAGER AS COMPILED BY DOW JONES CAPITAL MARKETS REPORT KEMMERER BOTTLING GROUP INC 70 MILLION OF SENIOR SECURED NOTES DUE JUNE 1 2000 PRICED AS 10 7/8S AT 99396 TO YIELD 11 NONCALLABLE FOR FOUR YEARS THE ISSUE IS RATED SINGLEB3 BY MOODY'S INVESTORS SERVICE INC AND SINGLEBMINUS BY STANDARD & POOR'S CORP THE ISSUE WILL BE SOLD THROUGH BT SECURITIES CORP UNIROYAL TECHNOLOGY CORP 80 MILLION OF SENIOR SECURED NOTES DUE JUNE 1 2003 PRICED AT PAR TO YIELD 1175 ACCORDING TO MCM CORPORATEWATCH INC NONCALLABLE FOR FIVE YEARS THE ISSUE IS RATED SINGLEB2 BY MOODY'S AND SINGLEB BY S&P THE ISSUE WILL BE SOLD THROUGH SALOMON BROTHERS INC FREMONT GENERAL CORP 12 MILLION COMMON SHARES OFFERED AT 35 APIECE THROUGH AN UNDERWRITING GROUP LED BY MERRILL LYNCH & CO AND DEAN WITTER REYNOLDS INC INTERNATIONAL BUSINESS MACHINES CORP 11 BILLION OF CUMULATIVE PERPETUAL PREFERRED STOCK PRICED THROUGH DEALERS LED BY LEHMAN BROTHERS THE 44 MILLION SHARES OF 25 PREFERRED WERE PRICED WITH A DIVIDEND YIELD OF 75 THE SIZE OF THE OFFERING WAS RAISED FROM A PREVIOUSLY PLANNED 30 MILLION SHARES NONCALLABLE FOR EIGHT YEARS THE SHARES ARE RATED SINGLEA2 BY MOODY'S AND SINGLEAPLUS BY S&P PAINEWEBBER PREMIUM INSURED MUNI INCOME FUND INITIAL OFFERING OF 14 MILLION COMMON SHARES PRICED AT 15 APIECE THROUGH UNDERWRITERS LED BY PAINEWEBBER INC FEDERAL NATIONAL MORTGAGE ASSOCIATION 475 MILLION OF REALESTATE MORTGAGEINVESTMENT CONDUIT SECURITIES OFFERED BY PRUDENTIAL SECURITIES INC THE OFFERING SERIES 1993109 IS BACKED BY THE AGENCY'S 15YEAR 6 AND 20YEAR 7 1/2 MORTGAGE SECURITIES THE 15YEAR COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 665 AND A REMAINING TERM TO MATURITY OF 149 YEARS THE 20YEAR COLLATERAL HAS A WEIGHTED AVERAGE COUPON RATE OF 815 AND A REMAINING TERM OF MATURITY OF 199 YEARS COUNCIL OF EUROPE SUPRANATIONAL 100 MILLION SWISS FRANCS OF FLOATINGRATE NOTES DUE JULY 1 1994 CARRYING A COUPON OF THE THREEMONTH LONDON INTERBANK OFFERED RATE LESS 15 BASIS POINTS PRICED AT 1005 VIA UNION BANK OF SWITZLERLAND DAIMLERBENZ NORTH AMERICA CORP GERMAN PARENT 150 MILLION SWISS FRANCS OF 475 PRIVATELY PLACED NOTES DUE JULY 2 1999 PRICED AT 10175 VIA CREDIT SUISSE FEES 1625 POINTS NISSHO IWAI EUROPE PLC JAPAN PARENT SIX BILLION YEN OF EUROBONDS IN TWO TRANCHES DUE SEPT 7 1994 AT ISSUE AND FIXED REOFFER PRICE PAR VIA IBJ INTERNATIONAL LTD FIRST THREEMILLIONYEN TRANCHE PAYS INTEREST QUARTERLY FROM JUNE 3 1993 AT THREEMONTH LIBOR FOR YEN PLUS 0125 POINT FROM SEPT 7 1993 AT 675 LESS LIBOR AND FROM MARCH 7 1994 AT LIBOR FLAT SECOND THREEMILLIONYEN TRANCHE PAYS INTEREST AT 355 QUARTERLY KEEPWELL AGREEMENT BETWEEN ISSUER AND PARENT NISSHO IWAI CORP FEES UNDISCLOSED VATTENFALL TREASURY AB SWEDEN PARENT 500 MILLION OF 6 EUROBONDS DUE JUNE 10 1998 AT ISSUE PRICE 101413 VIA CREDIT SUISSE FIRST BOSTON LTD REOFFERED AT 99838 TO YIELD 604 ANNUAL A SPREAD OF 625 BASIS POINTS ABOVE COMPARABLE US TREASURY NOTE GUARANTOR VATTENFALL AB FEES 1875 POINTS 9306010041 930601 BUSINESS BRIEF ROBESON INDUSTRIES CORP COMPANY FILES WITH COURT FOR CHAPTER 11 PROTECTION ROBESON INDUSTRIES CORP SOUTH PLAINFIELD NJ SAID IT FILED FOR CHAPTER 11 PROTECTION FROM CREDITORS IN THE BANKRUPTCY COURT FOR THE DISTRICT OF NEW JERSEY THE COMPANY SAID IN A STATEMENT THAT THE IMMEDIATE CAUSE OF ITS FILING WAS A PENDING FORECLOSURE SALE OF THE STOCK OF ROBESON INDUSTRIES OF HONG KONG LTD ROBESON SAID A PENDING FINANCING WITH EXTECH CORP WASN'T COMPLETED BECAUSE A DISPUTE AROSE BETWEEN THE PARTIES FURTHER INFORMATION ABOUT EXTECH A CREDITOR WASN'T AVAILABLE AND OFFICIALS OF ROBESON COULDN'T BE REACHED FOR COMMENT ROBESON SAID IT WILL REORGANIZE AROUND ITS CORE BUSINESS OF MARKETING HOUSEHOLD APPLIANCES AND ACCESSORIES ROBESON INDUSTRIES OF HONG KONG ISN'T PART OF THE CHAPTER 11 FILING THE COMPANY SAID IN ITS STATEMENT ROBESON SAID IT CAN MAKE NO ASSURANCES ABOUT THE OUTCOME OF CHAPTER 11 PROCEEDINGS OR THE DEGREE OF CONTINUING INTEREST IN THE COMPANY BY ITS PRESENT SHAREHOLDERS AFTER THE COMPLETION OF CHAPTER 11 PROCEEDINGS ROBESON SAID UNAUDITED 1992 NET INCOME WAS 222123 OR SEVEN CENTS A SHARE INCLUDING AN EXTRAORDINARY CREDIT OF 355762 THE COMPANY REPORTED 1991 NET INCOME OF 224636 OR NINE CENTS A SHARE INCLUDING AN EXTRAORDINARY CREDIT OF 67668 SALES WERE 196 MILLION IN 1992 COMPARED WITH 208 MILLION IN 1991 9306010040 930601 BUSINESS BRIEF CIRCUIT CITY STORES INC RETAILER'S DISTRIBUTION PACT WITH MITSUBISHI UNIT IS OVER CIRCUIT CITY STORES INC AND MITSUBISHI ELECTRONICS AMERICA INC A UNIT OF MITSUBISHI ELECTRIC CORP TOKYO SAID THEY TERMINATED THEIR DISTRIBUTION AGREEMENT AS OF TODAY CIRCUIT CITY'S PRESIDENT AND CHIEF EXECUTIVE OFFICER RICHARD L SHARP BLAMED THE END OF THE AGREEMENT ON MITSUBISHI'S PRICES AND ITS VIDEO TECHNOLOGY SAYING THEY ARE NO LONGER COMPETITIVE WITH OTHER BRANDS CARRIED BY THE RICHMOND VA ELECTRONICS RETAILER MITSUBISHI'S SHARE OF THE COMPANY'S VIDEO BUSINESS WILL DECLINE TO ABOUT 2 OF CIRCUIT CITY'S SALES IN FISCAL 1994 ENDING IN FEBRUARY MR SHARP SAID MITSUBISHI HOWEVER SAID THE AGREEMENT ENDED AFTER IT DECIDED NOT TO AUTHORIZE DEALER STATUS TO CIRCUIT CITY STORES IN THE GREATER CHICAGO AREA THE UPPER MIDWEST AND NEW STORES IN NEW JERSEY AND NEW ENGLAND CIRCUIT CITY SAID ITS SALES AND EARNINGS WON'T BE AFFECTED BY THE LOSS OF THE MITSUBISHI AGREEMENT IN LATE NEW YORK STOCK EXCHANGE TRADING FRIDAY SHARES OF CIRCUIT CITY FELL 25 CENTS TO 3225 APIECE 9306010039 930601 OTC FOCUS MARKET RALLY BUILDS ON SHAKY GROUND BY SARA CALIAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK PROPELLED BY CASH PROFITS AND POLITICS THE OVERTHECOUNTER MARKET COULD SOON HIT NEW HIGHS BUT SOME ANALYSTS WORRY THAT THE FOUNDATIONS OF THE LATEST RALLY ARE SHAKY THE NASDAQ COMPOSITE INDEX MADE A STAB AT A NEW RECORD LAST WEEK BUT LOST MOMENTUM FRIDAY WHEN IT SKIDDED 406 POINTS TO FINISH AT 70053 STILL SHY OF ITS RECORD HIGH OF 70885 REACHED FEB 4 SOME OTC STOCKS DESERVE TO RALLY SAYS PETER CANELO NATWEST SECURITIES CHIEF MARKET ANALYST THE EARNINGS HAVE BEEN PRETTY GOOD FOR MANY OF THESE OTC STOCKS AND JUSTIFY THEIR PRICES HE SAYS OVERALL HOWEVER HE IS CONCERNED THAT THE RECENT BUYING FRENZY ISN'T BASED ON FUNDAMENTALS THIS IS A VERY TREACHEROUS RALLY AND THE LOGIC DRIVING THE MARKET IS TROUBLESOME HE SAYS SOMEHOW THE FACT THAT THE CLINTON ADMINISTRATION IS IN TATTERS IS BEING TRANSFORMED INTO THE BULLISH ACTION WE ARE SEEING MR CANELO SAYS MANY INVESTORS VIEW PRESIDENT CLINTON'S DECLINING POWER AS GOOD FOR THE MARKET BECAUSE HE WON'T BE ABLE TO RAISE TAXES AS MUCH AS HE WANTS AND HIS EXPENSIVE HEALTHCARE PLAN MIGHT BE PARED DOWN IN CONGRESS WHILE TECHNOLOGY CABLE AND COMMUNICATION ISSUES ARE LEADING THE CURRENT RALLY HEALTHCARE AND BIOTECHNOLOGY STOCKS HAVE STARTED TO RISE FROM THEIR LOWS TRADERS SAY MR CANELO IS TROUBLED THAT TECHNOLOGY STOCKS ARE AMONG THE LEADERS THE LEADERSHIP IN THE NASDAQ MARKET IS NOT TERRIBLY STRONG EXCEPT FOR INTEL AND THAT STILL ISN'T AT ITS HIGH HE SAYS INTEL SLID 17 TO CLOSE AT 110 7/8 ON FRIDAY BELOW ITS 52WEEK HIGH OF 121 1/4 A LARGE PART OF THE NASDAQ MARKET'S CLIMB HAS COME FROM THE UTILITIES SECTOR MAINLY THE CABLE AND COMMUNICATION STOCKS ANALYSTS SAY TELECOMMUNICATIONS INC FELL 5/8 TO 22 3/4 ON FRIDAY BELOW ITS 52WEEK HIGH OF 25 1/2 AND MCI COMMUNICATIONS EASED 7/8 TO 52 ONLY SLIGHTLY UNDER ITS HIGH OF 53 5/8 THE LACK OF STRONG LEADERSHIP SUGGESTS TO MR CANELO THAT WHILE PRICES MIGHT GO STILL HIGHER THE GROUNDWORK IS BEING LAID FOR A RETREAT I THINK THIS IS A BLOWOFF RALLY HE SAYS PREDICTING THAT THE NASDAQ COMPOSITE INDEX COULD JUMP TO 725 OR HIGHER IN THE SHORT TERM BUT LATER THIS SUMMER HE EXPECTS THE INDEX TO TUMBLE BACK DOWN TO 640 OR LOWER IF THE NASDAQ STARTS HITTING NEW HIGHS I'D BE A SELLER HE WARNS AC MOORE CHIEF STRATEGIST AT ARGUS INVESTMENT MANAGEMENT AGREES THE NASDAQ MARKET ISN'T THE HEALTHIEST MARKET RIGHT NOW HE SAYS AND IT MIGHT BE SIGNALING DANGERS FOR ALL STOCKS THE OVERALL BULL MARKET CYCLE IS ALMOST 32 MONTHS OLD AND THAT IS THE TIME WHEN YOU START TO LOOK FOR DANGER SIGNS MR MOORE SAYS THE SEEDS OF THE PROBLEM ARE BEING SOWN NOW THE FACT THAT THE NASDAQ MARKET IS HITTING NEW HIGHS IS ONE STRONG INDICATION OF SPECULATION IN THE MARKET NEVERTHELESS MOST ANALYSTS AGREE THAT SMALL STOCKS WILL FINISH THE YEAR HIGHER THAN BIG STOCKS IN THE SHORT TERM THERE WILL BE SHARP BOUNCES UP AND DOWN SAYS CHARLES CLOUGH CHIEF INVESTMENT STRATEGIST FOR MERRILL LYNCH BUT SMALLER COMPANIES STILL HAVE A GREATER OPPORTUNITY TO OUTPERFORM BIG COMPANIES IN THE LONG TERM THEY HAVE GREATER GROWTH POTENTIAL AND MORE VALUE SO FAR THIS YEAR THE NASDAQ COMPOSITE INDEX IS UP 35 WHILE THE S&P 500 HAS GAINED 33 AND THE DOW JONES INDUSTRIAL AVERAGE HAS RISEN 69 JOHN WAKEMAN AN ANALYST WITH T ROWE PRICE ASSOCIATES IN BALTIMORE SAYS MUCH OF THE RECENT SURGE IN THE NASDAQ INDEX IS THE RESULT OF MONEY MANAGERS WITH LARGE CASH POSITIONS FLOCKING INTO THE HOT STOCKS OF THE MOMENT IT'S A HERD INSTINCT HE SAYS ONE GUY INVESTS AND NOBODY WANTS TO BE LEFT BEHIND IN THE TECHNOLOGY RALLY HE ADDS THAT THE T ROWE PRICE NEW HORIZONS FUND IS RAISING ITS CASH LEVELS MODESTLY AND THAT MANAGERS ARE BUYING CAUTIOUSLY STILL HE SEES ROOM FOR PRICES TO MOVE HIGHER DURING THE REMAINDER OF THE YEAR HISTORICALLY SMALL STOCKS HAVE COMMANDED A MUCH HIGHER VALUATION THAN LARGER STOCKS HE SAYS AT THE END OF THE FIRST QUARTER THE SMALL STOCKS HELD BY THE NEW HORIZONS FUND SPORTED A PRICE/EARNINGS RATIO OF ONLY 114 TIMES THE S&P 500'S P/E RATIO IN THE PAST THE NASDAQ MARKET PEAKED WHEN THIS RATIO REACHED A MULTIPLE OF TWO SO SMALL STOCKS PRICES COULD STILL GO HIGHER HE SAYS MARY FARRELL A MARKET STRATEGIST WITH PAINEWEBBER SUGGESTS THAT SLOW ECONOMIC GROWTH AND LOW INTEREST RATES ARE LIKELY TO WORK TO THE BENEFIT OF SMALL STOCKS IN COMING MONTHS PROVIDED THE CLINTON ADMINISTRATION DOESN'T TORPEDO THE MARKET WITH ITS BUDGET AND HEALTHCARE PLANS IF WHATEVER COMES OUT OF WASHINGTON IS LIVABLE THEN THE SMALL CAPS WILL OUTPERFORM LARGER STOCKS SHE SAYS MS FARRELL SAYS THE RELATIVELY STRONG PERFORMANCE OF THE RUSSELL 2000 AN INDEX OF 2000 SMALL STOCKS THAT ARE TRADED ON THE NEW YORK AND AMERICAN STOCK EXCHANGES AND THE NASDAQ MARKET SHOWS BROADBASED SUPPORT FOR SMALL STOCKS BEYOND THE TECHNOLOGY SECTOR WHILE SOME EXPERTS CITE THE HIGH NUMBER OF INITIAL PUBLIC OFFERINGS AS ANOTHER SIGN OF SPECULATION THAT MARKS A MARKET TOP NOT EVERYONE IS CONVINCED THAT IT IS NEAR DANGER LEVELS ROBERT NATALE A NEW ISSUES ANALYST WITH STANDARD & POOR'S SAYS ALTHOUGH MANY IPOS ARE BEING PRICED AT HIGH LEVELS THE PACE OF NEW ISSUES HASN'T REACHED A WORRISOME LEVEL AT LEAST YET WHEN YOU GET OVER 60 OFFERINGS A MONTH THAT WILL BE THE SELLING SIGNAL HE SAYS OVERTHECOUNTER ISSUES ENDED MIXED THOUGH A SELLOFF AMONG COMPUTER NETWORKING STOCKS SENT THE COMPOSITE INDEX FURTHER FROM ITS RECORD HIGH ADVANCERS BEAT OUT DECLINERS 1355 ISSUES TO 1296 ON TOTAL VOLUME OF 1894 MILLION SHARES DOWN FROM THURSDAY'S 2778 MILLION SHARES MOST ACTIVELY TRADED 3COM LED THE DECLINE THE SANTA CLARA CALIF CONCERN PLUMMETED 11 1/2 TO 27 AS ANALYSTS TURNED CAUTIOUS ON CURRENT AND NEXT FISCALQUARTER EARNINGS WESSELS ARNOLD & HENDERSON AND MERRILL LYNCH BOTH LOWERED THEIR INVESTMENT RATINGS OTHER COMPUTER NETWORKING ISSUES FELL FOLLOWING 3COM'S LEAD SYNOPTICS SHED 5 7/8 TO 119 1/4 NOVELL LOST 1 1/4 TO 28 1/4 IN ACTIVE TRADING AND CISCO SYSTEMS FELL 1 TO 54 ELSEWHERE IN THE TECHNOLOGY SECTOR ORACLE CORP WAS 1 7/8 LOWER AT 41 3/4 ADOBE SYSTEMS WAS OFF 1 5/8 AT 66 BMC SOFTWARE TUMBLED 2 3/4 TO 48 3/4 AND LOTUS DEVELOPMENT SLUMPED 1 1/4 TO 34 1/4 MICROSOFT IN REDMOND WASH FINISHED 1 1/2 WEAKER AT 92 5/8 DESPITE A POSITIVE ANNOUNCEMENT BY CHAIRMAN WILLIAM GATES III GATES SAID THE COMPUTER MAKER IS SPEARHEADING THE DEVELOPMENT OF SOFTWARE TO LINK PERSONAL COMPUTERS WITH COPIERS FAX MACHINES AND PRINTERS THAT WOULD RADICALLY CHANGE THE MACHINES' ROLES IN THE OFFICE DELL COMPUTER OF AUSTIN TEXAS STOOD OUT AS ONE OF THE FEW GAINERS IN THE GROUP RISING 5/8 TO 24 1/4 THE COMPANY SAID IT PLANS TO OPEN A COMPUTER PRODUCTION PLANT IN TOLUCA MEXICO TO CUSTOMIZE SYSTEMS FOR ITS MEXICAN SALES OPERATIONS NORTHERN TRUST DIPPED 1/2 TO 42 3/4 THE CHICAGO BANK HOLDING COMPANY SAID IT HAS COMMITTED TO INVEST 1 MILLION IN NONVOTING COMMON SHARES OF CLOSELY HELD SHOREBANK CORP THE PARENT OF SOUTH SHORE BANK IN CHICAGO PROVIDENT BANCORP IN CINCINNATI GAVE UP 3/4 TO 26 AFTER SAYING ITS PRINCIPAL BANK HAS BEEN SUED BY THE SUPERINTENDENT OF THE OHIO DIVISION OF SAVINGS AND LOAN ASSOCIATIONS IN A MATTER INVOLVING HUNTER SAVINGS ASSOCIATION WHICH PROVIDENT ACQUIRED IN 1991 9306010038 930601 BUSINESS BRIEF SANTA MONICA BANK CALIFORNIA INSTITUTION AGREES TO FDIC CORRECTIVE ORDER SANTA MONICA BANK SAID IT AGREED TO A FEDERAL DEPOSIT INSURANCE CORP ORDER REQUIRING THE CALIFORNIA BANK TO TAKE A NUMBER OF ACTIONS THE BANK SAID IT AGREED NOT TO ADD DIRECTORS OR OFFICERS WITHOUT NOTIFYING THE FDIC TO REDUCE CONSTRUCTIONLOAN CONCENTRATION AND TO FILE WRITTEN PROGRESS REPORTS WITH STATE AND FEDERAL REGULATORS THE BANK ADDED THAT IT ALSO AGREED TO MAINTAIN A TIER 1 CAPITAL RATIO OF 75 MAINTAIN ADEQUATE RESERVES FOR LOAN LOSSES MAINTAIN GROWTH AT LESS THAN 10 A YEAR AND NOT TO PAY DIVIDENDS WITHOUT FDIC AND STATE CONSENT THE BANK SAID IN MARCH THAT IT EXPECTED SUCH AN ORDER AND IN ITS STATEMENT ON FRIDAY SAID THAT IT BELIEVES MANY OF THE CONDITIONS ALREADY HAVE BEEN CORRECTED SANTA MONICA BANK SAID ITS CAPITAL POSITION CONTINUES TO BE IN EXCESS OF ALL MINIMUM FDIC REQUIREMENTS EQUITY CAPITAL TO ASSETS OR TIER 1 CAPITAL HAS INCREASED SINCE YEAR END TO 931 TOTAL RISKBASED CAPITAL OR TIER 1 PLUS TIER 2 CAPITAL TO ASSETS HAS RISEN TO 1331 THE BANK SAID 9306010037 930601 BUSINESS BRIEF IMC FERTILIZER GROUP INC FOURTHPERIOD CHARGE IS SET FOR SETTLEMENT OVER A MINE IMC FERTILIZER GROUP INC NORTHBROOK ILL SAID IT WOULD TAKE A 12 MILLION CHARGE IN THE FOURTH QUARTER ENDING JUNE 30 AS PART OF A SETTLEMENT WITH INSURERS CONCERNING WATER DAMAGE AT ONE OF ITS CANADIAN POTASH MINES THE SETTLEMENT RESOLVES LITIGATION STEMMING FROM WATER INFILTRATION OF THE MINE THAT BEGAN IN DECEMBER 1985 IMC SAID IT HAS SUFFERED PROPERTY DAMAGE AND BUSINESS INTERRUPTION LOSSES AS A RESULT OF THE FLOODING THE MINE CONTINUES TO OPERATE WITH WATER BEING PUMPED FROM SEVERAL UNDERGROUND LOCATIONS IMC SAID THE FERTILIZER MAKER SAID IT WILL REIMBURSE POTASH CORP OF SASKATCHEWAN INC AN ESTIMATED C273 MILLION US216 MILLION WHICH POTASH CORP HAD PREVIOUSLY CONTRIBUTED TO IMC RELATING TO THE WATER DAMAGE IMC SAID IT ALSO WILL PAY A PREVIOUSLY DECLARED DIVIDEND OF US519 MILLION TO ITS FORMER CORPORATE PARENT IMCERA GROUP INC 9306010036 930601 REDEMPTION NOTICES THE FOLLOWING IS A LISTING OF SECURITIES CALLED FOR PARTIAL OR COMPLETE REDEMPTION DURING THE WEEK ENDED MAY 28 1993 THE NOTICES ARE TAKEN FROM ADVERTISEMENTS APPEARING IN EDITIONS OF THE WALL STREET JOURNAL AND ARE NOT MEANT TO BE DEFINITIVE INQUIRIES REGARDING SPECIFIC ISSUES SHOULD BE DIRECTED TO THE PAYING AGENT OR IF NONE IS LISTED THE ISSUER ALLEGHENY COUNTY PENN HOSPITAL DEVELOPMENT AUTHORITY WILL REDEEM ON JULY 1 1993 380000 PRINCIPAL AMOUNT OF ITS 6625 SERIES K HOSPITAL REVENUE REFUNDING AND IMPROVEMENT BONDS DUE JULY 1 2009 MELLON BANK PITTSBURGH IS TRUSTEE ALTON ILL WILL REDEEM ON JULY 1 1993 ITS 65 HOSPITAL FACILITY REVENUE BONDS SERIES 1974 DUE JULY 1 1999 WEDGE BANK ALTON ILL IS TRUSTEE BAYSHORE COMMUNITY HOSPITAL WILL REDEEM ON JULY 1 1993 340000 PRINCIPAL AMOUNT OF ITS 6625 FIRST MORTGAGE BONDS SERIES A DUE JULY 1 2000 UNITED JERSEY BANK HACKENSACK NJ IS ESCROW TRUSTEE BLYTHEVILLE ARK WILL REDEEM ON JULY 1 1993 ITS 6625 INDUSTRIAL DEVELOPMENT REVENUE BONDS SERIES 1976 DUE JULY 1 2001 MERCANTILE BANK OF ST LOUIS IS TRUSTEE CALIFORNIA POLLUTION CONTROL FINANCING AUTHORITY WILL REDEEM ON JULY 1 1993 1120000 PRINCIPAL AMOUNT OF ITS 7 POLLUTION CONTROL REVENUE BONDS SERIES 1974 DUE JULY 1 1999 FIRST INTERSTATE BANK CALABASAS CALIF IS TRUSTEE CHELAN COUNTY WASH PUBLIC UTILITY DISTRICT NO 1 WILL REDEEM ON JULY 1 1993 THE FOLLOWING CONSOLIDATED SYSTEM REVENUE BONDS DUE JULY 1 OF THE INDICATED YEAR SERIES 1984 96 DUE 1994 97 DUE 1995 98 DUE 1996 99 DUE 1997 10 DUE 1998 101 DUE 1999 102 DUE 2000 103 DUE 2001 104 DUE 2002 105 DUE 200306 CHEMICAL BANK NEW YORK IS TRUSTEE REFUNDIG SERIES 1986 69 DUE 1994 7 DUE 1995 71 DUE 1996 72 DUE 1997 725 DUE 1998 73 DUE 1999 735 DUE 2000 74 DUE 2001 AND 75 DUE 2006 BANK OF NEW YORK IS PAYING AGENT CONNECTICUT WILL REDEEM ON JULY 1 1993 THE FOLLOWING 525 1977 GENERAL OBLIGATION BONDS DUE OCT 15 OF THE INDICATED YEARS GENERAL STATE PURPOSE BONDS SERIES D DUE 199397 GENERAL STATE PURPOSE BONDS SERIES I DUE 199397 HIGHWAY SYSTEM BONDS SERIES NN DUE 199397 MUNICIPAL REDEVELOPMENT BONDS SERIES J DUE 199397 HOUSING FOR ELDERLY BONDS SERIES G DUE 199397 SHAWMUT BANK CONNECTICUT HARTFORD CONN IS PAYING AGENT DELAWARE TRANSPORTATION AUTHORITY WILL REDEEM ON JULY 1 1993 585000 PRINCIPAL AMOUNT OF ITS 74 TRANSPORTATION REVENUE BONDS 1979 SERIES B DUE JULY 1 1994 WILMINGTON TRUST WILMINGTON DEL IS TRUSTEE ELGIN ILL WILL REDEEM ON JULY 1 1993 ITS GENERAL OBLIGATION PARKING BONDS SERIES 1960A DUE JAN 1 19952001 AMERICAN NATIONAL BANK & TRUST CO OAK PARK ILL IS ESCROW AGENT FARMINGTON NM WILL REDEEM ON JUNE 30 1993 THE FOLLOWING POLLUTION CONTROL REVENUE REFUNDING BONDS ITS 10 3/4 1982 FIRST SERIES BONDS DUE NOV 1 2012 ITS 9 7/8 1983 FIRST SERIES DUE JAN 1 2003 AND ITS 1983 SECOND SERIES BONDS 8 7/8 DUE MAY 1 2003 AND 9 DUE MAY 1 2013 FIRST INTERSTATE BANK OF CALIFORNIA CALABASAS CALIF IS TRUSTEE HAWAII WILL CALL FOR PARTIAL REDEMPTION ON JULY 1 1993 THE FOLLOWING AIRPORT SYSTEM REVENUE BONDS 59 SERIES 1969 DUE JULY 1 1994 7 SECOND SERIES OF 1969 DUE JULY 1 1994 71 SERIES 1970 DUE JULY 1 1995 725 SECOND SERIES OF 1970 DUE JULY 1 1995 625 SERIES 1971 DUE JULY 1 1996 575 SECOND SERIES OF 1971 DUE JULY 1 1996 525 SERIES 1972 DUE JULY 1 1997 85 SERIES 1974 DUE JULY 1 1999 74 SERIES 1975 DUE JULY 1 2000 AND 5625 SERIES 1977 DUE JULY 1 2003 BANKERS TRUST NEW YORK IS TRUSTEE ILLINOIS INDUSTRIAL POLLUTION CONTROL FINANCING AUTHORITY WILL REDEEM ON JULY 1 1993 55000 PRINCIPAL AMOUNT OF ITS 6 5/8 SECURING POLLUTION CONTROL REVENUE BONDS 1974 SERIES A DUE JULY 15 2004 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE ILLINOIS TOLLWAY WILL REDEEM ON JULY 1 1993 19155000 PRINCIPAL AMOUNT OF ITS 6 3/4 NORTHERN ILLINOIS TOLL HIGHWAY REVENUE BONDS SERIES 1955 DUE JAN 1 2010 CONTINENTAL BANK CHICAGO IS ESCROW AGENT LAKE ARROWHEAD COMMUNITY SERVICES DISTRICT WILL REDEEM ON JULY 1 1993 ITS 1978 WATER REVENUE BONDS DUE JULY 1 19942008 BANK OF AMERICA GLENDALE CALIF IS FISCAL AGENT MARYLAND HEALTH & HIGHER EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON JULY 1 1993 805000 PRINCIPAL AMOUNT OF ITS 67 REVENUE BONDS 1977 SERIES A DUE JULY 1 2006 FIRST NATIONAL BANK OF MARYLAND BALTIMORE IS TRUSTEE MISSOURI STATE ENVIRONMENTAL IMPROVEMENT AUTHORITY WILL REDEEM ON JULY 1 1993 ITS SERIES 1978 POLLUTION CONTROL REVENUE BONDS MERCANTILE BANK OF ST LOUIS IS TRUSTEE NEW JERSEY WILL REDEEM ON JULY 1 1993 ITS 7 POLLUTION CONTROL REVENUE BONDS SERIES 1976 DUE JULY 1 2001 CHASE MANHATTAN BANK NEW YORK IS TRUSTEE NEW JERSEY HEALTH CARE FACILITIES FINANCING AUTHORITY WILL REDEEM ON JULY 1 1993 THE FOLLOWING PASCACK VALLEY HOSPITAL ASSOCIATION REVENUE BONDS SERIES B DUE JULY 1 OF THE INDICATED YEAR 85 DUE 1994 87 DUE 1995 9625 DUE 2007 AND 975 DUE 2015 MIDLANTIC NATIONAL BANK ISELIN NJ IS TRUSTEE ONTARIO WILL REDEEM ON JULY 2 1993 ITS 5 1/2 DEBENTURES SERIES DW DUE APRIL 1 1996 BANK OF MONTREAL TRUST CO NEW YORK IS FISCAL AGENT OTTUMWA VILLISCA RED OAK & WEST UNION IOWA WILL REDEEM ON JULY 1 1993 THE FOLLOWING PRINCIPAL AMOUNTS OF THEIR NURSING HOME REVENUE BONDS SERIES 1979 DUE JULY 1 1999 OTTUMWA 20000 PRINCIPAL AMOUNT VILLISCA 10000 RED OAK 25000 AND WEST UNION 25000 BOATMEN'S NATIONAL BANK DES MOINES IOWA IS TRUSTEE PENNSYLVANIA HIGHER EDUCATIONAL FACILITIES AUTHORITY WILL REDEEM ON JULY 1 1993 245000 PRINCIPAL AMOUNT OF ITS 7625 COLLEGE REVENUE BONDS NINTH SERIES DUE JULY 1 2015 MELLON BANK PITTSBURGH IS PAYING AGENT PUERTO RICO WILL REDEEM ON JULY 1 1993 6000000 PRINCIPAL AMOUNT OF ITS 875 PUBLIC IMPROVEMENT BONDS OF 1980 DUE JULY 1 1995 MORGAN GUARANTY TRUST CO NEW YORK IS PAYING AGENT PUERTO RICO AQUEDUCT & SEWER AUTHORITY WILL REDEEM ON JULY 1 1993 THESE AMOUNTS OF THE FOLLOWING REVENUE BONDS 192000 PRINCIPAL AMOUNT OF 42 SERIES 1960 BONDS DUE JULY 1 2000 265000 OF 36 SERIES 1962 DUE JULY 1 2000 450000 OF 45 SERIES 1966 DUE JULY 1 2002 350000 OF 59 SERIES 1973 DUE JULY 1 2006 AND 1040000 OF 725 SERIES 1976 DUE JULY 1 1999 CHASE MANHATTAN BANK NEW YORK IS TRUSTEE PUERTO RICO PUBLIC BUILDINGS AUTHORITY WILL REDEEM ON JULY 1 1993 1085000 PRINCIPAL AMOUNT OF ITS 55 SERIES B REVENUE BONDS DUE JULY 1 2002 MORGAN GUARANTY TRUST CO NEW YORK IS FISCAL AGENT ROANOKE COUNTY VA INDUSTRIAL DEVELOPMENT AUTHORITY WILL REDEEM ON JULY 1 1993 240000 PRINCIPAL AMOUNT OF ITS SERIES 1979 MEDICAL AND APARTMENT FACILITIES MORTGAGE REVENUE BONDS DUE JULY 1 2009 NATIONSBANK OF VIRGINIA IS TRUSTEE SAN ANTONIO TEXAS INDUSTRIAL DEVELOPMENT AUTHORITY WILL CALL FOR PARTIAL REDEMPTION ON JULY 1 1993 ITS SERIES 1981 INDUSTRIAL DEVELOPMENT REVENUE BONDS DUE JULY 1 1994 NATIONSBANK OF TEXAS IS TRUSTEE SAUGET ILL WILL REDEEM ON JULY 1 1993 ITS 645 SERIES 1978 POLLUTION CONTROL REVENUE BONDS DUE JULY 1 2008 FIRST NATIONAL BANK OF CHICAGO IS TRUSTEE SOUTH SUBURBAN HOSPITAL FOUNDATION WILL REDEEM ON JULY 1 1993 225000 PRINCIPAL AMOUNT OF ITS 775 SERIES D BONDS DUE JULY 1 2000 CONTINENTAL BANK CHICAGO IS TRUSTEE THOUSAND OAKS WILL REDEEM ON JULY 1 1993 135000 PRINCIPAL AMOUNT OF ITS 1973 RECREATIONAL FACILITIES REVENUE BONDS DUE JULY 1 2001 BANK OF AMERICA GLENDALE CALIF IS FISCAL AGENT TOLEDO OHIO LUCAS COUNTY PORT AUTHORITY WILL REDEEM ON JULY 1 1993 910000 PRINCIPAL AMOUNT OF ITS 4 REVENUE BONDS SERIES A DUE JANUARY 1 2004 CHASE MANHATTAN BANK NEW YORK IS TRUSTEE TRIBOROUGH BRIDGE & TUNNEL AUTHORITY WILL REDEEM ON JULY 1 1993 ITS GENERAL PURPOSE REVENUE BONDS SERIES D DUE JANUARY 1 199598 2003 AND 2012 MORGAN GUARANTY TRUST CO NEW YORK IS TRUSTEE VALDEZ ALASKA WILL REDEEM ON AUGUST 1 1993 ITS 8875 SERIES 1983 GENERAL OBLIGATION REFUNDING BONDS DUE AUGUST 1 1999 SEATTLEFIRST NATIONAL BANK LOS ANGELES IS PAYING AGENT WEST PALM BEACH FLA WILL REDEEM ON JULY 1 1993 THE FOLLOWING AMOUNTS OF THESE WATER AND SEWER REVENUE BONDS DUE JULY 1 1997 54000 OF 575 SERIES C AND 50000 OF 55 SERIES D CHEMICAL BANK NEW YORK IS PAYING AGENT ELYRIA TELEPHONE CO A UNIT OF ALLTEL CORP WILL REDEEM ON JUNE 15 1993 60000 PRINCIPAL AMOUNT OF ITS 8 FIRST MORTGAGE BONDS SERIES F DUE JUNE 15 1999 NATIONAL CITY BANK CLEVELAND IS TRUSTEE INTERSTATE POWER CO WILL REDEEM ON JUNE 30 1993 ITS 228 PREFERENCE STOCK ITS 9 SERIES A PREFERRED STOCK ITS 8 PREFERRED STOCK AND ITS 9 PREFERRED STOCK TEXAS INSTRUMENTS INC WILL CALL FOR PARTIAL REDEMPTION ON JUNE 25 1993 ITS 226 DEPOSITORY SHARES OF ITS SERIES A CONVERSION PREFERRED STOCK HARRIS TRUST & SAVINGS BANK CHICAGO IS PAYING AGENT WARNER COMMUNICATIONS INC A UNIT OF TIME WARNER INC WILL REDEEM ON AUGUST 18 1993 ITS 6 CONVERTIBLE SENIOR SUBORDINATED DEBENTURES DUE AUGUST 18 2001 CHASE MANHATTAN BANK NEW YORK IS PAYING AGENT NEW HAMPSHIRE INDUSTRIAL DEVELOPMENT AUTHORITY WITHDRAWS ITS NOTICE TO REDEEM ON JULY 1 1993 ITS FLOATING RATE MONTHLY DEMAND INDUSTRIAL FACILITY REVENUE BONDS 1083 HUDSON SERIES AS PREVIOUSLY ANNOUNCED SHAWMUT BANK IS TRUSTEE WARNER COMMUNICATIONS INC A UNIT OF TIME WARNER INC HAS NOT CALLED ITS 6 CONVERTIBLE SENIOR SUBORDINATED DEBENTURES DUE AUG 18 2001 FOR REDEMPTION ON AUG 18 AS REPORTED IN YESTERDAY'S REDEMPTION NOTICES COLUMN 9306010035 930601 CORPORATE FOCUS ONE GE UNIT MAKES THE ENGINES ANOTHER SEALS THE DEALS CAPITAL SERVICES ARM ALLOWS COMPANY TO MAKE BOLD MOVES IN LEAN TIMES BY AMAL KUMAR NAJ STAFF REPORTER OF THE WALL STREET JOURNAL THE DOWNTURN AND DISARRAY IN THE COMMERCIAL AIRCRAFT INDUSTRY OFFER AN IRRESISTIBLE OPPORTUNITY FOR GENERAL ELECTRIC CO TO STRENGTHEN ITS MARKETING CLOUT IN JET ENGINES AND GE'S RESPONSE HAS HIGHLIGHTED THE GROWING IMPORTANCE OF GE CAPITAL SERVICES TO THE PARENT COMPANY'S MARKET POWER ACROSS A WIDE RANGE OF BUSINESSES JUST THREE WEEKS AGO THE GE AIRCRAFT ENGINE UNIT BEAT OUT RIVALS FOR A 15 BILLION ENGINE ORDER FROM CONTINENTAL AIRLINES THE SAME DAY GE'S AIRCRAFT LEASING CONCERN REACHED AN AGREEMENT TO PURCHASE 45 LATESTMODEL PLANES FOR WHAT COMPETITORS SAY IS A GOOD PRICE FROM GPA GROUP PLC AS WELL AS AN OPTION TO ACQUIRE AS MUCH AS 80 OF THE IRISH AIRCRAFT LEASING CONCERN THE MUSCLE BEHIND THE MOVES GE RIVALS AND INDUSTRY ANALYSTS SAY IS GE CAPITAL SERVICES A FINANCING AND LEASING ARM WITH 155 BILLION IN ASSETS IT ACCOUNTS FOR ONETHIRD OF GE PROFITS AND A GROWING SHARE OF THE FAIRFIELD CONN COMPANY'S POWER IN ITS 12 BUSINESSES FROM MEDICAL IMAGING TO LIGHT BULBS IN BOTH THE CONTINENTAL AND GPA TRANSACTIONS WHICH RAISED EYEBROWS AND ENVY IN THE INDUSTRY GE'S FINANCIAL UNIT PLAYED A CRUCIAL ALBEIT LOWPROFILE ROLE EVEN AFTER GE RECEIVED CONTINENTAL'S ENGINE ORDERS IT DIDN'T ANNOUNCE THAT GE CAPITAL HAD PROVIDED 310 MILLION THAT HELPED CONTINENTAL TO EMERGE FROM BANKRUPTCY PROTECTION A FEW WEEKS EARLIER GE'S ENGINE UNIT IS ALSO LENDING CONTINENTAL 500 MILLION TO 600 MILLION FOR NEW ENGINES RIVALS AND ANALYSTS SAY THE CONTINENTAL DEAL EXPOSES GE TO NEW FINANCING RISKS BUT BOTH DEALS ALSO REINFORCE GE'S POWER IN THE COMPETITIVE MARKETS FOR JET ENGINES AND THEIR HIGHLY PROFITABLE SPAREPARTS AND MAINTENANCE SERVICES HOW DO YOU COMPETE AGAINST THAT LEVERAGE SAYS AN EXECUTIVE OF A RIVAL COMPANY WHO IS FAMILIAR WITH THE TRANSACTIONS AIRLINES USUALLY REORDER FROM THE SAME ENGINE MANUFACTURER BECAUSE OF THE EXTENSIVE MAINTENANCE AND OTHER SUPPORT SYSTEMS ALREADY IN PLACE FOR THAT MANUFACTURER'S ENGINES BUT WITH AIRLINES WEAK AND UNDER PRESSURE TO REPLACE THEIR FLEETS WITH AIRCRAFT THAT MEET NEW GOVERNMENT NOISE AND EMISSION STANDARDS THAT LOYALTY MAY CHANGE SAYS DON FUQUA PRESIDENT OF THE AEROSPACE INDUSTRIES ASSOCIATION IF ENGINE QUALITIES ARE THE SAME FINANCING WILL BE A MAJOR FACTOR HE SAYS BUT A BOON FOR JET ENGINE MANUFACTURERS ISN'T NECESSARILY GOOD FOR CUSTOMERS FINANCING THROUGH A MANUFACTURER IS MORE COSTLY THAN GOING TO A BANK SAYS GARY KELLY CHIEF FINANCIAL OFFICER OF SOUTHWEST AIRLINES SOME AIRLINE EXECUTIVES ALSO WORRY THAT RELYING ON MANUFACTURERS FOR FINANCING MAY DILUTE COMPETITION BASED ON TECHNOLOGY YOU WANT THE COMPETITION TO BE MORE VIGOROUS NOT LESS SAYS ONE AIRLINE EXECUTIVE GE CAPITAL SERVICES IS IN 23 DIFFERENT BUSINESSES IT EARNED 15 BILLION LAST YEAR AND IN RECENT YEARS IT HAS POSTED SHARP EARNINGS GROWTH BUCKING THE INDUSTRY TREND ITS HIGH CREDIT RATINGS ALLOW IT TO BORROW MONEY AT FAVORABLE RATES THAT PUT ITS RIVALS AT A DISADVANTAGE SAYS RUSSELL LEAVITT A SALOMON BROTHERS ANALYST GE HAS BEEN UNCHARACTERISTICALLY MODEST ABOUT ITS LATEST COUP INDEED ITS PUBLIC RELATIONS APPARATUS HAS TAKEN PAINS TO DENY ANY LINK BETWEEN GE CAPITAL AND JET ENGINE MARKETING INSISTING THEY ARE TOTALLY SEPARATE INDUSTRY EXECUTIVES SAY GE MAY BE TRYING TO AVOID ANY HINT OF ANTICOMPETITIVE PRACTICES THAT COULD RAISE EYEBROWS AT THE JUSTICE DEPARTMENT THEY SAY GE MAY ALSO BE TRYING TO PRESERVE GE CAPITAL'S NEUTRAL STANCE TO ALL CUSTOMERS LEST FAVORING ONE WITH SPECIAL FINANCING PROMPT OTHERS TO DEMAND THE SAME NEVERTHELESS ENGINE MAKERS FACE LITTLE CHOICE BUT TO DO MORE FINANCING WITH AIRLINES FINANCIALLY PRESSED US BANKS ARE RELUCTANT TO LEND SAYS TASSOS PHILIPPAKOS WHO FOLLOWS THE INDUSTRY AT MOODY'S INVESTORS SERVICE INC MR PHILIPPAKOS SAYS THAT AT LEAST FOR THE NEXT THREE TO FIVE YEARS AIRFRAME AND ENGINE MAKERS WILL HAVE TO ACT AS THE FINANCIERS OF LAST RESORT TO AVOID OPERATING AT LOW PRODUCTION RATES MANUFACTURERS THAT DON'T OFFER THIS FINANCING ARE LIKELY TO FIND THAT THE AIRLINES WILL GO ELSEWHERE TO BUY AIRCRAFT HE SAYS IN AN INTERVIEW EARLIER THIS YEAR BRIAN ROWE THE HEAD OF GE AIRCRAFT ENGINES SAID HE WOULD LIKE TO DO AS LITTLE ENGINE FINANCING AS POSSIBLE BUT WE MAY NOT BE ABLE TO AVOID IT BUT THIS IS WHERE GE'S STRENGTH COMES TO BEAR IN THE COMPETITIVE 20 BILLIONAYEAR JET ENGINE INDUSTRY INDUSTRY EXECUTIVES SAY THE CONTINENTAL DEAL IS AN EXAMPLE BESIDES GE AIRCRAFT ENGINE THE PRATT & WHITNEY UNIT OF UNITED TECHNOLOGIES CORP AND BRITAIN'S ROLLSROYCE PLC ALSO VIED FOR CONTINENTAL'S ENGINE ORDERS PEOPLE FAMILIAR WITH THE NEGOTIATIONS SAY THAT ALTHOUGH GE CAPITAL'S LOAN TO CONTINENTAL WAS NEVER EXPLICITLY LINKED WITH ENGINE ORDERS THEY WOULD HAVE BEEN SURPRISED IF GE HADN'T BEEN CHOSEN AS THE ENGINE SUPPLIER FOR THE 92 AIRCRAFT CONTINENTAL ORDERED FROM BOEING CO WHILE GE CAPITAL'S INTEREST IN ACQUIRING AS MUCH AS 80 OF GPA BEARS NO OVERT LINK TO THE JET ENGINE BUSINESS THE OWNERSHIP WOULD BRING THE ENGINE DIVISION CLOSER TO POTENTIAL CUSTOMERS AND RESULT IN NEW ENGINE ORDERS INDUSTRY EXECUTIVES SAY BUT GE'S LARGER INTEREST IN GPA THEY SAY IS STRENGTHENING GE CAPITAL'S POLARIS AIRCRAFT LEASING UNIT WHICH IS BURDENED WITH OLD PLANES THAT DON'T MEET NEW NOISE AND OTHER ENVIRONMENTAL STANDARDS AN INDUSTRY EXECUTIVE SAID GE IS BASICALLY TAKING ADVANTAGE OF GPA'S FINANCIAL WOES TO CREATE A MODERN FLEET OF AIRCRAFT WITH VERY LITTLE MONEY IF GE ENDS UP ACQUIRING GPA THIS EXECUTIVE SPECULATED GE WILL SELL POLARIS AND EVEN IF IT SELLS FOR NOTHING GE WILL BE AHEAD IN THE LEASING BUSINESS WITH A BIG STAKE IN GPA A SPOKESMAN FOR GE CAPITAL SAID THAT THE UNIT MAY OR MAY NOT EXERCISE ITS OPTION TO ACQUIRE THE STAKE IN GPA BUT THAT TO COMMENT ON SPECULATION THAT IT MIGHT SELL POLARIS WOULD BE DOWNRIGHT SILLY WHETHER GE SELLS MORE ENGINES BY FINANCING THE SALES THROUGH ITS ENGINE DIVISION OR BY HAVING GE CAPITAL'S LEASING UNIT BUY MORE PLANES POWERED WITH GE ENGINES THE RESULT WILL BE THE SAME GE WILL CONSOLIDATE ITS POSITION IN A MARKET SHAKEN BY A SHARP DROP IN ORDERS FOR MILITARY AND COMMERCIAL JET ENGINES GE WILL HAVE MORE OF ITS ENGINES OUT IN THE AIRCRAFT FLEETS AND THAT MEANS A GROWING SPAREPARTS BUSINESS SAYS ONE EXECUTIVE THE PROFITABLE SPAREPARTS BUSINESS ACCOUNTS FOR 20 OF GE AIRCRAFT'S TOTAL BUSINESS AND IS GROWING 10 YEARLY BUT AT WHAT POINT DOES THE RISK OF FINANCING OUTWEIGH THE LURE OF AN ENGINE ORDER IN JANUARY PRATT & WHITNEY TOOK A 447 MILLION CHARGE AGAINST 1992 FOURTHQUARTER RESULTS TO COVER RISKS IN ITS ENGINE FINANCING ARRANGEMENTS MR PHILIPPAKOS OF MOODY'S SAYS PRATT & WHITNEY'S EXPOSURE TO THE AIRLINE INDUSTRY IS ONLY THE FIRST SYMPTOM OF A LONGTERM DISEASE 9306010034 930601 TECHNOLOGY & MEDICINE 3COM'S SHARES PLUNGE 30 AFTER FIRM DISCLOSES FISCAL 4THPERIOD SHORTFALLS BY BILL RICHARDS STAFF REPORTER OF THE WALL STREET JOURNAL THE DAY AFTER ITS STOCK HIT A RECORD HIGH 3COM CORP'S SHARES PLUNGED 30 WHEN THE COMPANY TOLD ANALYSTS IT WOULDN'T MEET FISCAL FOURTHQUARTER SALES OR EARNINGS EXPECTATIONS THE COMPANY BLAMED THE SHORTFALLS ON AN UNUSUAL IMBALANCE IN SUPPLY AND DEMAND NONETHELESS IN VERY HEAVY TRADING OF 138 MILLION SHARES THE STOCK OF THE SANTA CLARA CALIF MAKER OF COMPUTERNETWORKING PRODUCTS PLUNGED 1150 TO CLOSE AT 27 A SHARE FRIDAY IN NATIONAL OVERTHECOUNTER TRADING A SURGE IN DEMAND FOR 3COM'S ETHERLINK III COMPUTER ADAPTER CARD AND OTHER NETWORKING HARDWARE HAD QUADRUPLED THE COMPANY'S SHARE PRICE FROM 10 LAST JULY TO 40 DURING THURSDAY'S SESSION BUT ANALYSTS BEGAN PULLING BACK FROM 3COM'S STOCK AND REDUCING FISCAL FOURTHQUARTER EARNINGS ESTIMATES AFTER COMPANY OFFICIALS DISCLOSED FRIDAY THAT GROWTH IN DEMAND FOR THE ADAPTER CARD HAD FALLEN TO A LEVEL BELOW THAT OF RECENT QUARTERS ANALYSTS ALSO PREDICTED THAT 3COM WOULD CONTINUE TO LAG IN SMOOTHING OUT THE INTEGRATION OF SEVERAL COMPUTER HUB COMPANIES IT ACQUIRED RECENTLY COMPUTER HUBS CONTROL TRAFFIC WITHIN A NETWORK ANALYSTS HAD PROJECTED 3COM'S EARNINGS FOR THE QUARTER ENDED MAY 31 WOULD BE 42 CENTS A SHARE ACCORDING TO ZACKS INVESTMENT RESEARCH INC I THINK THE AVERAGE EXPECTATION HAS COME DOWN A COUPLE OF PENNIES SINCE THEN A 3COM SPOKESWOMAN SAID FRIDAY SHE DECLINED TO MAKE AN EARNINGS PROJECTION FOR THE FISCAL FOURTH QUARTER BUT SAID THE COMPANY DIDN'T DISAGREE WITH THE NEWER ESTIMATES IN THE YEARAGO FISCAL FOURTH QUARTER 3COM EARNED 49 MILLION OR 17 CENTS A SHARE ON SALES OF 1217 MILLION THE COMPANY'S STRONG SHOWING UNTIL THE END OF LAST WEEK WAS PART OF A GENERAL SURGE AMONG COMPUTER NETWORKING COMPANIES WHOSE PRODUCTS HAVE BEEN IN HEAVY DEMAND AS COMMERCIAL USERS HAVE LINKED STRONGER AND MOREAFFORDABLE PERSONAL COMPUTERS INTO NETWORKS WHILE 3COM'S STOCK COLLAPSE WAS THE MOST DRAMATIC CISCO SYSTEMS INC ANOTHER NETWORKING HARDWARE MAKER AND NOVELL INC THE LEADING NETWORK SOFTWARE PRODUCER WERE ALSO AMONG THE MOST ACTIVE LOSERS IN THE OVERTHECOUNTER MARKET FRIDAY NOVELL CLOSED AT 2825 DOWN 125 AND CISCO CLOSED AT 54 DOWN 1 THE COMPANY'S PROBLEM ACCORDING TO THE SPOKESWOMAN AND INDUSTRY ANALYSTS WAS THAT 3COM WASN'T ABLE TO MEET THE INITIAL DEMAND FOR ETHERLINK THE MARKET'S FIRST SILICONBASED ADAPTER LAST FALL THE COMPANY'S ORDER BACKLOG REACHED 12 TO 14 WEEKS SAID MARIA LEWIS AN ANALYST FOR COWEN & CO AS A RESULT CUSTOMERS BEGAN OVERORDERING AND HOARDING PARTS TO SAFEGUARD AGAINST LACK OF SUPPLY AS 3COM STEPPED UP PRODUCTION IT CUT THE ORDER BACKLOG TO ABOUT EIGHT WEEKS IN FEBRUARY MORE RECENTLY THE DELIVERY INTERVAL HAS DROPPED TO A MORE NORMAL 3TO4 WEEKS MS LEWIS SAID COMPANIES THAT HAD BEEN ORDERING HEAVILY TO AVOID DELAYS CUT BACK AS THE BACKLOG DROPPED THIS WAS A SHIFT IN THE SUPPLY CURVE NOT THE DEMAND CURVE BUT IT RANG A GONG THAT SENT SOME PEOPLE BAILING OUT MS LEWIS SAID BECAUSE 3COM'S FISCAL FIRST QUARTER INCLUDES THE TRADITIONALLY SLOW SUMMER SEASON BUT NOT SEPTEMBER WHEN MANY COMPUTER COMPANIES' STOCKS GET A BOOST FROM REBOUNDING DEMAND MS LEWIS SAID SHE EXPECTED THE QUARTER TO FALL BELOW EXPECTATIONS AS WELL 9306010032 930601 TRW TO REDEEM NOTES CLEVELAND TRW INC SAID IT WILL REDEEM ON JULY 1 150 MILLION OF ITS 825 NOTES DUE 1996 AT 100 OF PRINCIPAL AMOUNT PLUS ACCRUED INTEREST TRW IS AN AUTOMOTIVE AEROSPACE AND INFORMATION CONCERN 9306010031 930601 WHAT'S NEWS BUSINESS AND FINANCE THE ECONOMY GREW AT A REVISED 09 ANNUAL RATE IN THE FIRST QUARTER AFTER SUCH SLUGGISH GROWTH ANALYSTS PREDICT THE CURRENT PERIOD WILL BE BETTER WHILE THE TAX INCREASE PASSED BY THE HOUSE MAY PUT A DAMPER ON SOME SPENDING ENACTMENT OF THE BILL COULD ALSO HAVE A POSITIVE EFFECT BY LIFTING THE CLIMATE OF UNCERTAINTY THE RATE OF FIRSTQUARTER GROWTH HAD ORIGINALLY BEEN REPORTED AT 18 CLINTON'S ECONOMIC BILL COULD SURVIVE IN THE SENATE GIVEN THE PROSPECT OF COMPROMISES BOREN INDICATED AS OPTIMISM ABOUT ITS CHANCES SURFACED MEANWHILE MOYNIHAN SAID THE ENERGY TAX PROPOSAL IS BEING SCALED BACK TO BLUNT ITS IMPACT ON SOME INDUSTRIES RAYTHEON IS NEGOTIATING TO ACQUIRE BRITISH AEROSPACE'S BUSINESS JET SUBSIDIARY ACCORDING TO PEOPLE FAMILIAR WITH THE TALKS THE PURCHASE WHICH COULD TOTAL MORE THAN 300 MILLION WOULD CHALLENGE INDUSTRY LEADER CESSNA AIRCRAFT A UNIT OF TEXTRON STOCK AND BOND PRICES DROPPED ON FRIDAY AND THE DOLLAR PLUNGED FURTHER THE DOW JONES INDUSTRIALS FELL 2740 POINTS TO 352743 THE BENCHMARK 30YEAR TREASURY BOND'S PRICE DROPPED 5/8 POINT ITS YIELD ROSE TO 698 ALYESKA PIPELINE SETTLED ITS DISPUTE WITH SIX WHISTLEBLOWERS WHO ALLEGED THEY WERE FIRED FOR RAISING CONCERNS ABOUT POTENTIALLY DANGEROUS SAFETY AND ENVIRONMENTAL VIOLATIONS BUT THE GIANT OIL CONSORTIUM STILL FACES SCRUTINY FROM CONGRESSIONAL INVESTIGATORS WHO SAID ALYESKA MISLED THEM USX'S US STEEL UNIT PLANS TO SET ASIDE SECONDQUARTER RESERVES OF MORE THAN 400 MILLION BEFORE TAXES TO COVER DAMAGES FROM AN ANTITRUST SUIT AGAINST ITS EXB&LE RAILROAD UNIT LIQUIDITY FUND INVESTMENT PLANS TO STOP ARRANGING SALES OF LIMITEDPARTNERSHIP SECURITIES THIS MONTH BECAUSE IT HAS BEEN LOSING MONEY UNDER COMMISSION LIMITS IMPOSED BY THE NASD MACHINETOOL ORDERS ROSE TO 3482 MILLION IN APRIL UP 48 FROM MARCH AND 59 FROM A YEAR EARLIER PROCTER & GAMBLE PLANS TO REDUCE TO THREE FROM FIVE THE NUMBER OF AD AGENCIES THAT HANDLE ITS VICKS LINE OF PRODUCTS IN A MOVE SIGNALING A GLOBAL APPROACH TO NAMEBRAND ADVERTISING A NESTLE FOOD UNIT SUED ABBOTT LABS AND BRISTOLMYERS ALLEGING THEY CONSPIRED WITH A PEDIATRICIANS' GROUP TO BLOCK COMPETITORS BY DISCOURAGING BABYFORMULA ADVERTISING IN THE US MCDONALD'S RAISED ITS QUARTERLY DIVIDEND AND INDICATED THAT IT IS CONSIDERING SPLITTING ITS STOCK THE SUMMER MOVIE SEASON GOT OFF TO A LACKLUSTER START OVER THE HOLIDAY WEEKEND ESTIMATES INDICATE THAT THE TOP 10 FILMS TOOK IN ABOUT 12 LESS THAN THE LEADERS DURING LAST YEAR'S PERIOD JAPANESE CAR MAKERS PLAN TO PRESENT THE US WITH FIGURES TOMORROW THAT SUGGEST THEY ARE DOING THEIR PART TO CUT JAPAN'S HUGE TRADE SURPLUS THEY ARE EXPECTED TO ANNOUNCE THEY INCREASED THEIR PURCHASES OF USMADE AUTO PARTS BY A HEFTY 29 TO 136 BILLION IN THE LATEST YEAR STOCKS VOLUME 207762190 SHARES DOW JONES INDUSTRIALS 352743 OFF 2740 TRANSPORTATION 157912 OFF 1470 UTILITIES 23836 UNCHANGED BONDS LEHMAN BROTHERS TREASURY INDEX 505982 OFF 2610 COMMODITIES OIL 2002 A BARREL OFF FOUR CENTS DOW JONES FUTURES INDEX 12122 OFF 036 SPOT INDEX 12174 UP 070 DOLLAR 10695 YEN OFF 020 15875 MARKS OFF 00150 9306010028 930601 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 2 15/16 LOW 3 NEAR CLOSING BID 3 1/16 OFFERED RESERVES TRADED AMONG COMMERCIAL BANKS FOR OVERNIGHT USE IN AMOUNTS OF 1 MILLION OR MORE SOURCE PREBON YAMANE USA INC DISCOUNT RATE 3 THE CHARGE ON LOANS TO DEPOSITORY INSTITUTIONS BY THE FEDERAL RESERVE BANKS CALL MONEY 5 THE CHARGE ON LOANS TO BROKERS ON STOCK EXCHANGE COLLATERAL SOURCE TELERATE SYSTEMS INC COMMERCIAL PAPER PLACED DIRECTLY BY GENERAL ELECTRIC CAPITAL CORP 308 30 TO 44 DAYS 312 45 TO 89 DAYS 319 90 TO 119 DAYS 322 120 TO 149 DAYS 328 150 TO 229 DAYS 335 230 TO 270 DAYS COMMERCIAL PAPER HIGHGRADE UNSECURED NOTES SOLD THROUGH DEALERS BY MAJOR CORPORATIONS 316 30 DAYS 318 60 DAYS 321 90 DAYS CERTIFICATES OF DEPOSIT 260 ONE MONTH 266 TWO MONTHS 270 THREE MONTHS 285 SIX MONTHS 312 ONE YEAR AVERAGE OF TOP RATES PAID BY MAJOR NEW YORK BANKS ON PRIMARY NEW ISSUES OF NEGOTIABLE CDS USUALLY ON AMOUNTS OF 1 MILLION AND MORE THE MINIMUM UNIT IS 100000 TYPICAL RATES IN THE SECONDARY MARKET 310 ONE MONTH 320 THREE MONTHS 335 SIX MONTHS BANKERS ACCEPTANCES 305 30 DAYS 310 60 DAYS 314 90 DAYS 317 120 DAYS 322 150 DAYS 326 180 DAYS OFFERED RATES OF NEGOTIABLE BANKBACKED BUSINESS CREDIT INSTRUMENTS TYPICALLY FINANCING AN IMPORT ORDER LONDON LATE EURODOLLARS 3 1/4 3 1/8 ONE MONTH 3 5/16 3 3/16 TWO MONTHS 3 3/8 3 1/4 THREE MONTHS 3 3/8 3 1/4 FOUR MONTHS 3 7/16 3 5/16 FIVE MONTHS 3 1/2 3 3/8 SIX MONTHS LONDON INTERBANK OFFERED RATES LIBOR 3 1/4 ONE MONTH 3 3/8 THREE MONTHS 3 1/2 SIX MONTHS 3 7/8 ONE YEAR THE AVERAGE OF INTERBANK OFFERED RATES FOR DOLLAR DEPOSITS IN THE LONDON MARKET BASED ON QUOTATIONS AT FIVE MAJOR BANKS EFFECTIVE RATE FOR CONTRACTS ENTERED INTO TWO DAYS FROM DATE APPEARING AT TOP OF THIS COLUMN FOREIGN PRIME RATES CANADA 6 GERMANY 850 JAPAN 4 SWITZERLAND 750 BRITAIN 6 THESE RATE INDICATIONS AREN'T DIRECTLY COMPARABLE LENDING PRACTICES VARY WIDELY BY LOCATION TREASURY BILLS RESULTS OF THE MONDAY MAY 24 1993 AUCTION OF SHORTTERM US GOVERNMENT BILLS SOLD AT A DISCOUNT FROM FACE VALUE IN UNITS OF 10000 TO 1 MILLION 306 13 WEEKS 319 26 WEEKS FEDERAL HOME LOAN MORTGAGE CORP FREDDIE MAC POSTED YIELDS ON 30YEAR MORTGAGE COMMITMENTS DELIVERY WITHIN 30 DAYS 739 60 DAYS 748 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 735 60 DAYS 745 STANDARD CONVENTIONAL FIXEDRATE MORTGAGES 520 6/2 RATE CAPPED ONEYEAR ADJUSTABLERATE MORTGAGES SOURCE TELERATE SYSTEMS INC MERRILL LYNCH READY ASSETS TRUST 266 ANNUALIZED AVERAGE RATE OF RETURN AFTER EXPENSES FOR THE PAST 30 DAYS NOT A FORECAST OF FUTURE RETURNS 9306010027 930601 INTERNATIONAL MEXICO'S TOP LAW OFFICIAL FACES BATTLES WITH DRUG CARTELS AS VIOLENCE MOUNTS BY DIANNA SOLIS STAFF REPORTER OF THE WALL STREET JOURNAL MEXICO CITY LIKE HIS US COUNTERPART JANET RENO MEXICO'S NEW ATTORNEY GENERAL JORGE CARPIZO HAS JUST FACED HIS WACO HIS FIERY BAPTISMAL CAME WITH THE SAVAGE MURDER LAST WEEK OF 66YEAROLD JUAN JESUS POSADAS A ROMAN CATHOLIC CARDINAL BY DRUG CARTEL HITMEN AT THE AIRPORT IN GUADALAJARA A MEXICAN NARCONERVE CENTER DR CARPIZO A 49YEAROLD FORMER HUMANRIGHTS LEADER WIDELY PRAISED FOR HIS INTEGRITY NOW MUST SHOW HE CAN GET TOUGH WITH THE DRUG WORLD BUT DR CARPIZO'S NEW CHARGE IS ENORMOUS HIS CASELOAD EXPLOSIVE AND HIS SIEGE WITH THE COCAINE CAPOS WILL MOST LIKELY LAST LONGER THAN THE WACO STANDOFF BETWEEN US AUTHORITIES AND A TEXAS RELIGIOUS SECT DR CARPIZO'S OFFICE OVERSEES MEXICO'S FEDERAL JUDICIAL POLICE FORCE WHOSE MEMBERS REPEATEDLY HAVE BEEN LINKED TO THE DRUG TRADE AS GUADALAJARA AND RECENT KILLINGS IN THE TOURIST RESORTS OF CANCUN AND PUERTO VALLARTA SHOW MEXICO'S CAPOS ARE IN A TURF WAR WITH ESCALATING PUBLIC VIOLENCE IF THEY CAN KILL A CARDINAL THEY CAN KILL ANYONE SAYS CARLOS ANGULO AN ATTORNEY IN CIUDAD JUAREZ A BORDERTOWN REFUGE TO ONE OF MEXICO'S STRONGEST DRUG CARTELS BUT HE ADDS I THINK CARPIZO DEFINITELY MEANS TO CLEAN UP THE OFFICE OF THE ATTORNEY GENERAL A TITANIC JOB WITH THE CARDINAL'S KILLING AN OUTRAGED PUBLIC IS DEMANDING MORE ACTION LATE LAST WEEK THE MEXICAN GOVERNMENT OFFERED A 5 MILLION REWARD FOR INFORMATION LEADING TO THE ARREST OF THE CARDINAL'S KILLERS WHO BRAZENLY HOPPED ON A COMMERCIAL FLIGHT TO TIJUANA FOUR PEOPLE HAVE BEEN ARRESTED THOUGH THE FOUR LEADERS OF THE RIVAL CARTELS REMAIN AT LARGE MANY AREN'T BUYING THE OFFICIAL VERSION OF WHAT HAPPENED TO THE CARDINAL WHOSE BODY WAS HIT WITH 14 BULLETS THEIR BIG QUESTION HOW COULD GUNMEN MISTAKE A CARDINAL DRESSED IN CLERICAL ROBES FOR A DRUG CAPO HALF HIS AGE MERELY BECAUSE HE WAS RIDING IN A CAR SIMILAR TO THAT OF THE DRUG BOSS MARKED FOR ASSASSINATION DR CARPIZO IS PRESIDENT CARLOS SALINAS DE GORTARI'S THIRD ATTORNEY GENERAL IN ONLY FOUR YEARS HE IS UNMARRIED AGAINST THE DEATH PENALTY AND DEEPLY DEVOTED TO HIS LEGAL CALLING HE GOT HIS DOCTORATE IN CONSTITUTIONAL AND ADMINISTRATIVE LAW FROM MEXICO'S NATIONAL UNIVERSITY WHERE HE LATER SERVED AS RECTOR HE WAS A MEXICAN SUPREME COURT JUSTICE FOR A YEAR WHEN PRESIDENT SALINAS TAPPED HIM TO HEAD HIS NEW NATIONAL HUMAN RIGHTS COMMISSION FOR TWO AND A HALF YEARS DR CARPIZO AIMED HIS FIRE OFTEN AT THE ATTORNEY GENERAL'S OFFICE FOR ACTING WITH IMPUNITY IN HUMANRIGHTS ABUSES WHEN BUGS WERE FOUND IN DR CARPIZO'S OFFICE IN 1991 IT WAS WIDELY BELIEVED TO HAVE BEEN THE WORK OF THE ATTORNEY GENERAL'S OFFICE AFTER YEARS OF STRAINED MEXICANAMERICAN RELATIONS OVER THE DRUG WAR DR CARPIZO SCORES HIGH MARKS IN WASHINGTON US DRUG ENFORCEMENT ADMINISTRATION CHIEF ROBERT BONNER WHO MET WITH DR CARPIZO IN LATE APRIL SAYS THE NEW MEXICAN ATTORNEY GENERAL RECOGNIZES THE CHALLENGE TO PROFESSIONALIZE THE MEXICAN FEDERAL JUDICIAL POLICE AND THE FEDERAL CRIMINAL JUSTICE SYSTEM IN MEXICO SINCE DR CARPIZO TOOK HIS POST JAN 4 HE HAS BROUGHT CORRUPTION CHARGES AGAINST A SENIOR COMMANDER IN THE FEDERAL JUDICIAL POLICE ACROSS MEXICO HE HAS PROVOKED PRAISE AND RAGE FOR RECENTLY INSTALLING ROADBLOCKS ON FEDERAL HIGHWAYS WHERE HIS AGENTS CHECK DRIVERS FOR WEAPONS DRUGS OR STOLEN VEHICLES DESPITE HIS IMAGE OF HONESTY DR CARPIZO IS ANSWERING FEW OF THE PUBLIC'S QUESTIONS SINCE THE SHOOTING HE HAS YET TO HOLD A FORMAL NEWS CONFERENCE PREFERRING TO SEND OUT NEWS BULLETINS LIKEWISE HE DECLINED TO BE INTERVIEWED FOR THIS ARTICLE HE DOESN'T LIKE THE PRESS SAYS AN AIDE HE'S PARANOID ABOUT IT APPARENTLY SO IN MARCH DR CARPIZO ACCUSED MEXICAN JOURNALISTS OF BEING ON THE NARCOS' PAYROLL WHILE HE NAMED A FEW PUBLICATIONS OUTSIDE OF MEXICO CITY HE HINTED THAT HIS INVESTIGATION'S CONCLUSION WOULD UNCOVER MORE NARCOJOURNALISTS IN SOME PLACES THE CHARGE HAS SENT A CHILL THROUGH THE PRESS CORPS RAYMUNDO RIVA PALACIO AN EDITOR AT EL FINANCIERO THE LEADING BUSINESS DAILY SAYS SOME EDITORS ARE NOW EVALUATING THEIR STAFFS CLOSELY FOR POSSIBLE DRUG TIES ADD TO DR CARPIZO'S NARCOTICS CASELOAD A SENSITIVE ALLEGATION INVOLVING BUSINESS BRIBES A MONTH AGO DR CARPIZO REOPENED THE INVESTIGATION INTO CHARGES BY AN EXAGENT OF INTERNATIONAL BUSINESS MACHINES CORP THAT HE WAS ASKED FOR A 1 MILLION BRIBE TO SECURE A GOVERNMENT CONTRACT THE IBM CASE HAS BEEN EMBARRASSING AS THE MEXICAN GOVERNMENT FIGHTS FOR PASSAGE OF THE NORTH AMERICAN FREE TRADE AGREEMENT ALREADY THE EXIBM AGENT KAVEH MOUSSAVI IS WIDELY CONSIDERED TO HAVE HELPED TOPPLE MEXICO'S MINISTER OF COMMUNICATIONS AND TRANSPORTATION WHOSE AGENCY OVERSAW THE CONTRACT BIDDING 9306010026 930601 VW'S SOUTH AFRICAN UNIT CAPETOWN SOUTH AFRICA VOLKSWAGEN SOUTH AFRICA A SUBSIDIARY OF GERMANY'S VOLKSWAGEN AG SAID IT WILL EXPORT 17000 JETTAS TO CHINA UNDER THE 500 MILLION RAND 157 MILLION DEAL THE CARS WILL BE EXPORTED OVER THE NEXT 12 TO 15 MONTHS VW SOUTH AFRICA SAID THE AGREEMENT WILL PUT ON HOLD THE COMPANY'S ANNOUNCEMENT IN APRIL THAT IT WOULD HAVE TO LAY OFF SOME 700 EMPLOYEES CHINA'S CAR MARKET IS ESTIMATED AT 400000 VEHICLES A YEAR COMPARED WITH SOUTH AFRICA'S ESTIMATED 179000 9306010025 930601 COMMODITIES GOLD'S SURGE RAISES WORRY OF HUGE SALES BY WARREN GETLER STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK WILL GOLD'S 15 SURGE THIS YEAR TO 380 AN OUNCE PRY OPEN DUSTY VAULTS AROUND THE WORLD AND DRAW A BIG PRICEDEPRESSING OUTFLOW OF BULLION TRADERS AND INVESTORS HAVE REASON TO BE CONCERNED PARTICULARLY ABOUT THE WORLD'S CENTRAL BANKS WHICH HOLD MORE THAN ONE BILLION OUNCES OF GOLD LAST YEAR THE DUTCH AND BELGIAN CENTRAL BANKS SOLD HEAVILY HELPING SINK GOLD PRICES TO A SEVENYEAR LOW WORLDWIDE CENTRAL BANKS SOLD 20 MILLION OUNCES LAST YEAR THE HIGHEST LEVEL OF OFFICIAL GOLD BULLION SALES IN MORE THAN A DECADE ACCORDING TO INDUSTRY ESTIMATES IN RECENT MONTHS CONCERN HAS FOCUSED ON THE BANK OF ITALY AND THE BANK OF FRANCE BOTH MAJOR HOLDERS OF GOLD RESERVES AS POTENTIAL SELLERS BUT NOW THERE MAY BE GROUNDS FOR THE WARY TO RELAX THE BANK OF ITALY HASN'T CONSIDERED ANY KIND OF SALES IN THE PAST AND WE HAVE NO PLANS TO SELL GOLD A SENIOR POLICYMAKING OFFICIAL WITH THE NATION'S CENTRAL BANK SAID IN A TELEPHONE INTERVIEW WE THINK IT IS IMPORTANT GIVEN THE OVERALL ECONOMIC SITUATION IN ITALY TO KEEP OUR GOLD RESERVES THE OFFICIAL SAID ADDING GOLD IS PSYCHOLOGICALLY CONSIDERED TO BE IMPORTANT AS AN INSTRUMENT TO BACK THE CURRENCY GIVEN THE INDEBTEDNESS OF THE STATE ALTHOUGH THE GOLD FOR AUGUST DELIVERY RETREATED 310 FRIDAY TO 38030 AN OUNCE MANY TRADERS BELIEVE THE PRICE WILL SOON REACH 400 AND TEMPT SOME CENTRAL BANKS TO SELL CHUNKS OF THEIR UNDERVALUED GOLD RESERVES AND TAKE PROFITS GOLD BEGAN RALLYING IN LATE APRIL SPURRED BY A PERCEIVED BULLISHNESS IN SUPPLYANDDEMAND FUNDAMENTALS AND BY MAJOR HIGHLY VISIBLE INVESTMENTS IN GOLD BY TWO FINANCIERS SIR JAMES GOLDSMITH AND GEORGE SOROS MORE RECENTLY A RETURN OF CONCERNS ABOUT INFLATION HAS HELPED FUEL THE RISE GOLD TRADERS AND INVESTORS VIEWED THE ITALIAN CENTRAL BANK AS A PRIME CANDIDATE TO UNLOAD A LARGE PORTION OF ITS MORE THAN 66 MILLION OUNCES OF GOLD ITALY HAS A HUGE BUDGET DEFICIT AND THE LIRA HAS EXPERIENCED SPECULATIVE ATTACKS BY CURRENCY TRADERS EARLIER THIS YEAR THE ITALIAN CENTRAL BANK OFFICIAL SAID THAT NO GOLD HAS BEEN USED TO DEFEND THE LIRA OUR GOLD POLICY HAS BEEN MAINTAINED FOR A VERY LONG TIME IT WAS NOT AFFECTED EITHER BY THE FOREIGN EXCHANGE CRISIS OR THE RECENT RISE IN THE GOLD PRICE THE REMARKS BY THE SENIOR ITALIAN CENTRAL BANKER WHO SPOKE ON THE CONDITION OF ANONYMITY FOLLOW STATEMENTS BY GERMAN CENTRAL BANK PRESIDENT HELMUT SCHLESINGER IN APRIL THAT THE POWERFUL BUNDESBANK HAD NO INTEREST IN PARING ITS MASSIVE 952 MILLIONOUNCE OR 3000TON GOLD RESERVES GOLD CONTINUES TO BE AN IMPORTANT COMPONENT OF OUR MONETARY RESERVE MR SCHLESINGER SAID AT AN APRIL 22 NEWS CONFERENCE IN FRANKFURT WE CONSIDER OUR GOLD HOLDINGS TO BE A KIND OF ULTIMATE MONETARY RESERVE UPON WHICH WE HAVE NOT HAD TO DRAW SENIOR FRENCH CENTRAL BANK OFFICIALS DECLINED TO COMMENT ABOUT THEIR INSTITUTION'S POLICY ON THE BANK'S ROUGHLY 82 MILLION OUNCES IN GOLD RESERVES A BANK OF FRANCE SPOKESMAN SAID THE BANK'S POLICY IS NEVER TO COMMENT ON GOLD SALES OR INTENTIONS TO SELL TRADERS SAID HOWEVER THAT FRANCE THE THIRDLARGEST HOLDER OF OFFICIAL GOLD RESERVES IN EUROPE AFTER GERMANY AND SWITZERLAND WAS LESS LIKELY TO SELL THAN ITALY BECAUSE OF ITS MORE STABLE CURRENCY AND SOUNDER FINANCES CENTRAL BANKS AREN'T THE ONLY ONES CAPABLE OF BREAKING THE GOLD RALLY IN RECENT WEEKS TRADERS SAY NUMEROUS GOLDMINING COMPANIES IN AUSTRALIA SOUTH AFRICA AND NORTH AMERICA HAVE BEEN CASHING IN DAILY THROUGH SALES OF INVENTORY AND FUTURE PRODUCTION WHILE THE INTERNATIONAL GOLD MARKET APPEARS TO BE ABSORBING THE INFLUX OF SUPPLY BY PRODUCERS ANY MAJOR GOLD SALE BY A LEADING CENTRAL BANK COULD QUICKLY CHILL THE MARKET'S BULLISH SENTIMENT DEALERS SAY GOLD FELL TO A SEVENYEAR LOW OF 327 AN OUNCE IN MARCH PARTLY DUE TO THE HEFTY SALES BY THE DUTCH AND BELGIAN CENTRAL BANKS LATE LAST YEAR THE DUTCH SALE SLASHED THAT NATION'S OFFICIAL BULLION HOLDINGS 29 THE DUTCH SOLD AROUND 129 MILLION OUNCES IN NOVEMBER ALTHOUGH THE GOLD WAS NOT DELIVERED INTO THE INTERNATIONAL BULLION MARKET UNTIL THE FIRST QUARTER OF THIS YEAR AND SOME OF THAT AMOUNT IS BELIEVED TO HAVE BEEN PURCHASED BY THE BANK OF CHINA THE BELGIANS DISPOSED OF 65 MILLION OUNCES IN APRIL 1992 CANADA AS WELL AS SOME SOUTH AMERICAN AND MIDDLE EASTERN NATIONS SOLD SMALLER VOLUMES OVER THE COURSE OF LAST YEAR ACCORDING TO INDUSTRY ESTIMATES NO OFFICIAL EXPLANATION OF THE DUTCH AND BELGIAN SALES WAS PROVIDED BUT SOME MEDIA REPORTS SUGGESTED THAT THE TWO CENTRAL BANKS HAD WANTED TO LOWER THEIR OVERALL BULLION HOLDINGS TO LEVELS PROPORTIONATE WITH THOSE HELD BY THE BUNDESBANK AS PART OF THE EUROPEAN COMMUNITY'S ECONOMIC INTEGRATION PROCESS THE REAL REASON WAS THEY WANTED CASH SAID JEFFREY CHRISTIAN MANAGING DIRECTOR OF CPM GROUP A NEW YORK PRECIOUS METALS CONSULTING COMPANY THEY WANTED SOMETHING THAT EARNED INTEREST AND THAT WOULD ALLOW THEM TO REVALUE THEIR OVERALL FOREIGNCURRENCY RESERVES BECAUSE THEIR GOLD HAD BEEN HELD AT BELOW MARKET PRICES MR CHRISTIAN SAID THAT IT WOULD BE UNFAIR TO CHARACTERIZE THE SALE BY THE DUTCH BANK AT LEVELS NEAR THE BOTTOM OF A 13YEAR BEAR MARKET AS A MISTAKE SURE THEY COULD HAVE GOTTEN A HIGHER PRICE IF THEY HAD WAITED SIX MONTHS OR MORE BUT IT'S INAPPROPRIATE TO SECONDGUESS THEIR JUDGMENT YOU COULD ALSO ARGUE THAT THE DUTCH COULD HAVE OBTAINED AN EVEN HIGHER PRICE IF THEY HAD SOLD TWO YEARS AGO WHEN THE PRICE WAS OVER 400 HE SAID IF THEY HAD THEY COULD HAVE EARNED COMPOUNDED INTEREST OF AROUND 800 MILLION ON THAT SALE'S PROCEEDS SOME TRADERS BELIEVE THAT THE DUTCH AND BELGIAN ACTIONS WILL GIVE AMPLE PAUSE TO OTHER CENTRAL BANKS PONDERING SALES OF GOLD INVENTORIES IN WHAT NOW SEEMS TO BE A STEADILY RISING MARKET I DON'T THINK THEY'LL WANT TO RISK PUTTING THEIR RESERVES OUT IN THE MARKET ONLY TO HAVE THE PRICE GO HIGHER NOTES GERARD POLLINO A SENIOR GOLD TRADER AND PARTNER IN MILLENIUM FUTURES GROUP INC IN NEW YORK THOUGH THE THREAT OF A REPEAT WAVE OF CENTRAL BANK SELLING MAY HAVE DIMINISHED TRADERS SAY THEY WILL REMAIN VIGILANT ANOTHER CAUSE OF CONCERN THEY ADD IS AN ACCELERATING DROPOFF IN DEMAND FROM PRICESENSITIVE CONSUMERS IN ASIA A GROUP THAT WAS PIVOTAL TO GOLD'S SPRING RALLY 9306010024 930601 WHO'S NEWS NEW YORK TIMES CO NEW YORK TIMES CO NEW YORK MICHAEL J KURTZ 45 YEARS OLD WAS NAMED TO A NEWLY CREATED POST VICE PRESIDENT FOR OPERATIONS AND LABOR RELATIONS OF THIS MEDIA COMPANY'S FLAGSHIP NEWSPAPER THE NEW YORK TIMES EFFECTIVE TODAY MR KURTZ WAS THE NEWSPAPER'S VICE PRESIDENT FOR HUMAN RESOURCES SUCCEEDING HIM IN THAT JOB IS DONNA C MIELE 41 NOW EXECUTIVE DIRECTOR FOR HUMAN RESOURCES 9306010023 930601 BUSINESS BRIEF FREMONT GENERAL CORP FIRM RAISES 418 MILLION IN SALE OF COMMON SHARES FREMONT GENERAL CORP SAID IT SOLD 1250000 NEW COMMON SHARES AT 35 EACH FOR NET PROCEEDS TO THE COMPANY OF ABOUT 418 MILLION THE SALE WAS MADE THROUGH AN UNDERWRITING GROUP LED BY MERRILL LYNCH & CO AND DEAN WITTER REYNOLDS INC AS OF FRIDAY IT HADN'T BEEN DECIDED WHETHER AN OVERALLOTMENT OPTION OF 187500 SHARES WOULD BE EXERCISED FREMONT GENERAL A SANTA MONICA CALIF FINANCIAL SERVICES CONCERN WITH INTERESTS IN INSURANCE AND A SAVINGS AND LOAN HAD 82 MILLION COMMON SHARES OUTSTANDING BEFORE THE OFFERING AND OTHER SECURITIES CONVERTIBLE INTO ABOUT 15 MILLION COMMON SHARES PROCEEDS WILL BE USED FOR THE EARLY REPAYMENT OF DEBT ADDITIONAL CAPITALIZATION OF A THRIFT LOANS TO THE COMPANY'S EMPLOYEE STOCKOWNERSHIP PLAN AND GENERAL CORPORATE PURPOSES 9306010022 930601 ABREAST OF THE MARKET SEARCHING FOR OVERSEAS STOCK PLAYS CONSIDER US MULTINATIONALS SOME SAY BY ANITA RAGHAVAN STAFF REPORTER OF THE WALL STREET JOURNAL NEW YORK THE BIG EARNINGS GAINS IN THE COMING QUARTERS WON'T BE MADE IN AMERICA OF ALL THE PROFITS EARNED BY THE 500 COMPANIES IN STANDARD & POOR'S INDEX A STAGGERING 45 NOW FLOWS FROM FOREIGN OPERATIONS SAYS EDWARD KERSCHNER STOCK STRATEGIST AT PAINEWEBBER TRUE OVERSEAS ECONOMIES ARE IN THE TANK BUT WHEN THEY RECOVER HE SAYS BOTTOM LINES ACROSS CORPORATE AMERICA WILL GET A BIG BOOST THE NET EFFECT IS TO PROLONG THE RISINGPROFIT CYCLE OF THIS ECONOMIC RECOVERY SAYS MR KERSCHNER WHO IS VERY BULLISH ON STOCKS DURING THE PAST THREE YEARS CORPORATE PROFITS HAVE BEEN BUOYED BY EXPECTATIONS OF A RECOVERY ALBEIT ANEMIC IN DOMESTIC SPENDING TODAY MANY ANALYSTS BELIEVE US STOCK PRICES ALREADY REFLECT A FULLFLEDGED REBOUND IN THE DOMESTIC ECONOMY BUT WHAT HASN'T BEEN FACTORED INTO STOCK PRICES IS A SNAPBACK IN OVERSEAS ECONOMIES INCREASINGLY MANY OF AMERICA'S LARGEST COMPANIES ARE MORE OF A PLAY ON THE GLOBAL ECONOMY THAN ON THE DOMESTIC US ECONOMY SAYS MR KERSCHNER MANY US INVESTORS AREN'T CONSCIOUS OF THIS POTENTIAL MONEY MANAGERS SAY THE POTENTIAL OF INVESTING OVERSEAS THROUGH UNDERLYING US STOCKS HAS NOT BEEN EXPLOITED AS OFTEN AS IT SHOULD BE SAYS TIM LOVE SENIOR PORTFOLIO MANAGER AT MARINVEST A SUBSIDIARY OF HONGKONG & SHANGHAI BANK TO BE SURE INVESTORS WHO WANT TO PROFIT FROM A RECOVERY IN EUROPE OR ASIA WILL BE BETTER OFF SHOVELING MONEY STRAIGHT TO THOSE MARKETS BUT IF YOUR GRANDFATHER OR NEXTDOOR NEIGHBOR DOESN'T UNDERSTAND THE NUANCES OF HOFFMANNLAROCHE INVESTING INTERNATIONALLY BY BUYING AMERICAN STOCKS IS PROBABLY AS GOOD AN AVENUE AS EXISTS SAYS LASZLO BIRINYI WHO HEADS A FINANCIAL SERVICES FIRM BEARING HIS NAME AT PAINEWEBBER ONE OF MR KERSCHNER'S MAIN INVESTMENT THEMES THIS YEAR IS BUYING INTO AMERICA'S EUROINDUSTRIALS WHICH ARE MULTINATIONAL CONCERNS THAT ARE POISED TO BENEFIT FROM AN ECONOMIC UPTURN IN EUROPE EUROPE ASIA AND CANADA EACH ACCOUNT FOR 20 TO 25 OF US EXPORTS BUT EUROPE DOMINATES THE SALES OF US FOREIGN AFFILIATES ACCOUNTING FOR 60 OF THE 16 TRILLION IN YEARLY SALES OF FOREIGN SUBSIDIARIES SAYS MR KERSCHNER IN PREVIOUS CYCLES THERE HAS BEEN SYNCHRONIZATION BETWEEN THE US AND THE WORLD ECONOMIES TYPICALLY SOON AFTER THE US EASES MONETARY POLICY EUROPEAN COUNTRIES DO THE SAME AND A GLOBAL ECONOMIC RECOVERY FOLLOWS ALONG THIS TIME THE US IS ALREADY IN A RECOVERY WHILE IN EUROPE CONTINENTAL CENTRAL BANKS ARE RAPIDLY LOWERING INTEREST RATES TO JUMPSTART THE SPUTTERING EUROPEAN ECONOMIES WE ARE AT THE POINT IN THE CYCLE WHERE EUROPE IS STILL WEAK SO YOU CAN GET THE BEST OF BOTH WORLDS BY BUYING INTO COMPANIES THAT ARE ALREADY BENEFITING FROM THE US RECOVERY AND ALSO STAND TO PROSPER FROM A EUROPEAN RECOVERY AS EUROPE REBOUNDS OVER THE NEXT YEAR MR KERSCHNER EXPECTS SUCH COMPANIES AS ALLIEDSIGNAL FORD GOODYEAR TIRE & RUBBER AND OWENSCORNING TO REPORT POSITIVE EARNINGS SURPRISES THE TREND TOWARD GREATER DIVERGENCE IN THE WORLD ECONOMIES HE SAYS MEANS THAT THE INITIAL RECOVERY IN US CORPORATE PROFITS WILL BE MODEST BUT THE STAYING POWER WILL BE A LOT LONGER WHEN STOCKPICKING INVESTORS SHOULD PAY CLOSE ATTENTION TO A COMPANY'S OVERSEAS EXPOSURE HE SUGGESTS FOR INSTANCE AN INVESTOR WHO LIKES AUTO STOCKS MAY HAVE STARTED LAST YEAR BY BUYING CHRYSLER WHOSE SALES ARE CONCENTRATED IN THE US BUT THEN THE INVESTOR WOULD HAVE BEEN WISE TO MOVE ONTO FORD WHICH HAS GREATER EXPOSURE TO THE UNITED KINGDOM THE UK WAS ONE OF THE FIRST EUROPEAN COUNTRIES TO EASE INTEREST RATES AND AS A RESULT ITS AUTO SALES ARE ALREADY PICKING UP MOMENTUM FINALLY WHEN THE EUROPEAN ECONOMIES ARE STARTING TO SHOW FAINT SIGNS OF A RECOVERY THE INVESTOR WOULD BE SMART TO SNAP UP SOME SHARES OF GENERAL MOTORS UNLIKE FORD GM OFFERS INVESTORS THE OPPORTUNITY TO SAVOR A SMORGASBORD OF EUROPEAN COUNTRIES ONE BIG ADVANTAGE OF THIS APPROACH TO INTERNATIONAL INVESTING IS THAT INVESTORS DON'T HAVE TO WORRY ABOUT BEING WHIPSAWED BY THE WILD CURRENCY SWINGS THAT OFTEN EAT INTO THE RETURNS OF FOREIGN STOCKS WHILE US COMPANIES THAT OPERATE OVERSEAS ARE VULNERABLE TO THESE SWINGS MANY OF THEM HEDGE THEIR PORTFOLIOS AGAINST FOREIGNEXCHANGE FLUCTUATIONS MANY US MUTUAL FUNDS THAT SPECIALIZE IN INTERNATIONAL INVESTING DO THIS TOO BUT NOT ALL OF THEM INCLUDING SOME BIG ONES BUT ANALYSTS SAY ONE BIG DRAWBACK TO THIS APPROACH IS THAT INVESTORS DON'T GET THE FULL BANG FOR THEIR BUCK ARTHUR MICHELETTI INVESTMENT STRATEGIST AT BAILARD BIEHL & KAISER IN SAN MATEO CALIF IS BEARISH ON THE US STOCK MARKET AND HIS DOMESTIC STOCK PORTFOLIO IS PEPPERED WITH A LOT OF US MULTINATIONALS STILL MR MICHELETTI DOESN'T VIEW THESE INVESTMENTS AS A SUBSTITUTE FOR INVESTING ABROAD WE BUY MULTINATIONALS BECAUSE WE LIKE THE FOREIGN EXPOSURE BUT YOU DON'T GET THE SAME KIND OF PLAY FROM THEM AS YOU DO INVESTING DIRECTLY IN FOREIGN MARKETS SAYS MR MICHELETTI KEVIN BANNON CHIEF INVESTMENT OFFICER AT BANK OF NEW YORK SAYS ANOTHER RISK TO INVESTING IN US MULTINATIONALS PARTICULARLY THOSE WITH HEAVY EXPOSURE TO EUROPE IS THAT THE ECONOMIES ON THE CONTINENT WON'T RECOVER AS FAST AS INVESTORS HOPE FOR INSTANCE GROWING INSTABILITY IN THE FORMER SOVIET UNION MAY FORCE MORE REFUGEES TO WESTERN EUROPE PUTTING PRESSURE ON SOCIAL SERVICES THE RISK IN EUROPE IS THAT THERE MAY BE SOME SOCIALLY INDUCED INFLATIONARY PRESSURES THAT WILL LIMIT THE FLEXIBILITY OF MONETARY AUTHORITIES TO LOWER INTEREST RATES SWIFTLY SAYS MR BANNON WHICH WILL DRAG OUT THE REJUVENATION OF EUROPEAN ECONOMIES THAT'S WHY MR KERSCHNER SAYS INVESTORS SHOULD BUY STOCKS OF US COMPANIES THAT HAVE BIG STAKES IN EUROPE NOT ONLY WILL THEY ENJOY THE CUSHION OF A US EARNINGS STREAM BUT WHEN THE EUROPEAN ECONOMIES DO START GROWING THEY WILL DO BETTER THAN INVESTING IN COMPANIES WHOSE PROFITS ARE MADE ONLY IN AMERICA STOCKS WERE BATTERED BY A SHARP DROP IN BOND PRICES A FURTHER PLUNGE IN THE DOLLAR AND A DISAPPOINTING ECONOMIC REPORT THE COMMERCE DEPARTMENT SAID GROSS DOMESTIC PRODUCT GREW BY JUST 09 IN THE FIRST QUARTER WELL BELOW ITS EARLIER ESTIMATE OF 18 GROWTH AND LOWER THAN THE 14 ANALYSTS HAD ESTIMATED THE REPORT CAUSED THE DOLLAR TO SINK WHICH IN TURN SPARKED RENEWED INFLATION FEARS THAT ROILED THE BOND MARKET THE DOW JONES INDUSTRIAL AVERAGE LOST 2740 POINTS TO 352743 STANDARD & POOR'S 500STOCK INDEX FELL 222 TO 45019 AND THE NEW YORK STOCK EXCHANGE COMPOSITE INDEX SANK 083 TO 24860 DECLINING ISSUES OUTPACED ADVANCERS 1014 TO 825 TRADING ON THE BIG BOARD TOTALED 2078 MILLION SHARES DOWN FROM 2909 MILLION ON THURSDAY WORLDWIDE STOCK PRICES FELL THE DOW JONES WORLD STOCK INDEX LOST 012 TO 10838 FOR THE WEEK THE DOW INDUSTRIALS ROSE NEARLY 35 POINTS OR 1 THE S&P 500 GAINED 44 OR 1 AND THE BIG BOARD COMPOSITE INDEX ADDED 23 OR 09 SEVERAL NEW ISSUES TOPPED THE BIG BOARD'S MOSTACTIVE LIST LED BY SONAT OFFSHORE DRILLING A UNIT OF BIRMINGHAM ALABASED SONAT INC THE IPO CLOSED AT 22 1/8 UP FROM ITS OFFERING PRICE OF 22 A SHARE ON HEAVY VOLUME OF 35 MILLION SHARES HOUSTONBASED SONAT OFFSHORE A CONTRACT OIL AND GAS WELL DRILLING COMPANY INITIALLY HAD EXPECTED TO COME TO MARKET AT BETWEEN 22 AND 24 A SHARE SHARES OF SONAT INC AN OIL AND GAS EXPLORATION COMPANY ADDED 1/8 TO 61 1/8 ITS INTEREST IN SONAT OFFSHORE WILL BE CUT TO 45 BY THE INITIAL OFFERING TANGER FACTORY OUTLET A GREENSBORO NC REAL ESTATE INVESTMENT TRUST ROSE TO 25 ON ITS FIRST DAY OF TRADING THE STOCK WAS OFFERED AT 2250 USXUS STEEL TUMBLED 2 5/8 TO 43 A FEDERAL APPEALS COURT THURSDAY AFFIRMED JUDGMENTS AGAINST A FORMER UNIT OF USX CORP THE JUDGMENTS TIED TO ALLEGED ANTITRUST VIOLATIONS TOTAL ABOUT 630 MILLION FURTHER APPEALS ARE PLANNED NATIONAL STEEL LOST 7/8 TO 18 1/2 SHARES OF THE MISHAWAKA IND COMPANY WERE DOWNGRADED BY A GOLDMAN SACHS & CO ANALYST TO MARKET PERFORMER FROM BUY STRATUS COMPUTER TUMBLED 5 7/8 TO 33 3/8 BROWN BROTHERS HARRIMAN CUT ITS RATING ON THE STOCK TO NEUTRAL FROM BUY OTHER TECHNOLOGY STOCKS WERE WEAK COMPAQ COMPUTER LOST 1 TO 57 7/8 HEWLETTPACKARD DROPPED 1 1/2 TO 83 3/8 COMPUTER SCIENCES FELL 1 1/8 TO 74 3/8 AND DIGITAL EQUIPMENT SLIPPED 3/4 TO 44 LAZBOY CHAIR JUMPED 2 TO 27 7/8 THE COMPANY POSTED EARNINGS OF 64 CENTS A SHARE FOR ITS FOURTH QUARTER UP FROM 48 CENTS A YEAR EARLIER NATIONAL MEDIA TUMBLED 2 TO 6 THE WALL STREET JOURNAL'S HEARD ON THE STREET COLUMN REPORTED THAT THE COMPANY HAS BEEN SUED FOR BREACH OF CONTRACT BY ONE OF ITS MAJOR BUSINESS PARTNERS THE COMPANY CONTENDS IT CAN DEFEND THE SUIT WITHOUT SOURING THAT RELATIONSHIP 9306010021 930601 TAIWAN'S UNEMPLOYMENT RATE TAIPEI TAIWAN'S UNEMPLOYMENT RATE IN APRIL STOOD AT 13 OF THE WORK FORCE UP 001 PERCENTAGE POINT FROM THE YEAREARLIER MONTH BUT UNCHANGED FROM MARCH TAIWAN'S DIRECTORATE GENERAL OF BUDGET ACCOUNTING AND STATISTICS REPORTED 9306010020 930601 MEDIA VISION ACQUIRES PELLUCID INC FOR STOCK VALUED AT 15 MILLION FREMONT CALIF MEDIA VISION INC HAS ACQUIRED CLOSELY HELD PELLUCID INC A MAKER OF LEADINGEDGE COMPUTER GRAPHICS HARDWARE FOR ABOUT 15 MILLION OF MEDIA VISION STOCK PRESIDENT PAUL JAIN SAID MR JAIN CALLED THE ACQUISITION STRATEGICALLY MOMENTOUS FOR MEDIA VISION A RAPIDLY GROWING MULTIMEDIA CONCERN THAT SPECIALIZES IN MAKING RELATIVELY INEXPENSIVE CHIPS AND COMPUTER BOARDS THAT ENABLE COMPUTER USERS TO COMBINE HIGHQUALITY SOUND AND VIDEO IMAGES IT IS ONE OF A HORDE OF RELATIVELY NEW COMPANIES COMPETING IN THE POTENTIALLY HUGE MARKET FOR MULTIMEDIA AND INTERACTIVE COMPUTING MR JAIN SAID MEDIA VISION SWAPPED ABOUT 583000 OF ITS SHARES FOR PELLUCID MEDIA VISION HAS ABOUT 13 MILLION SHARES OUTSTANDING IT CLOSED IN OVERTHECOUNTER TRADING FRIDAY AT 26 DOWN 75 CENTS MR JAIN SAID PELLUCID FOUNDED BY A GROUP OF FORMER SILICON GRAPHICS INC ENGINEERS AND EXECUTIVES HAS DEVELOPED SOPHISTICATED TECHNOLOGY THAT WILL SOON ENABLE MEDIA VISION TO SHIP PRODUCTS THAT OFFER HIGHDEFINITION BIGSCREEN 24BIT COLOR GRAPHICS ESSENTIAL FOR ADVANCED FULLMOTION VIDEO MR JAIN SAID THAT USING THE TECHNOLOGY IMAGES CAN BE MADE LARGE ENOUGH TO FILL AN ENTIRE SCREEN OF INTERNATIONAL BUSINESS MACHINE CORP PERSONAL COMPUTERS AND THEIR CLONES HE SAID CURRENT TECHNOLOGY DOESN'T PERMIT CLEAR FULLMOTION IMAGES TO BE THAT LARGE ON IBM PCS AND CLONES ALTHOUGH APPLE COMPUTER CO MACHINES CAN REPRODUCE BIGSCREEN MOTION IMAGES WE WILL BEGIN SHIPPING THIS FAMILY OF PRODUCTS IN THE FIRST QUARTER OF 1994 AND WE EXPECT IT TO BE VERY SUCCESSFUL HE SAID HE SAID OTHER GRAPHICS PRODUCTS INCORPORATING OTHER PELLUCID TECHNOLOGY WILL BEGIN SHIPPING ALMOST IMMEDIATELY MEDIA VISION WENT PUBLIC LAST FALL ANALYSTS ESTIMATE THAT MEDIA VISION WILL EARN ABOUT 18 CENTS A SHARE IN THE SECOND QUARTER ENDING JUNE 30 MR JAIN SAID HE'S VERY COMFORTABLE THAT WE'LL MEET THAT COMPARABLE FIGURES WEREN'T AVAILABLE MR JAIN SAID HE'S ALSO COMFORTABLE WITH ANALYSTS' FULLYEAR EARNINGS ESTIMATES OF ABOUT 185 MILLION ON REVENUE OF ABOUT 185 MILLION 9306010019 930601 UBS BANKS ON CONSERVATIVE STRATEGIES INDUSTRY LEADER AVOIDS TROUBLES THAT HAVE SNARED MAIN SWISS RIVALS BY NICHOLAS BRAY AND MARGARET STUDER STAFF REPORTERS OF THE WALL STREET JOURNAL ZURICH THE FRAMED SIGN ON THE WALL OF ROBERT STUDER'S OFFICE SAYS IT ALL LEAD FOLLOW OR GET OUT OF THE WAY AS CHIEF EXECUTIVE OF UNION BANK OF SWITZERLAND MR STUDER HAS NO DOUBTS ABOUT WHICH HE IS DOING UBS SWITZERLAND'S LARGEST AND MOST PROFITABLE BANK IS THE WORLD'S LEADING DISCRETIONARY MANAGER OF PRIVATE WEALTH IT IS ALSO ONE OF ONLY A HANDFUL OF NONGOVERNMENT CONTROLLED BANKS WORLDWIDE WITH AN UNCONTESTED TRIPLEA RATING AND IN AN ERA WHEN MORE THAN ONE BIG SOLID BANK HAS FALLEN OVER ITS OWN AMBITIONS MR STUDER DOES HIS LEADING FROM AN EXTREMELY CONSERVATIVE STANCE EVEN IF THAT MEANS LOWER PERCENTAGE RETURNS ON CAPITAL THAN SOME OF HIS MOREADVENTUROUS RIVALS RACK UP WE AIM TO REMAIN ONE OF THE LEADING BANKS IN THE WORLD AT THE END OF THE DECADE MR STUDER SAYS IT'S A TOUGH CHALLENGE EVEN FOR ONE OF THE WORLD'S MOST RESPECTED BANKS IN SWITZERLAND COMPETITION IN THE RETAILBANKING MARKET IS HEATING UP FOLLOWING THE PURCHASE EARLIER THIS YEAR OF SWISS VOLKSBANK BY CS HOLDING THE PARENT COMPANY OF CREDIT SUISSE INTERNATIONALLY MORE AND MORE BANKS ARE PILING INTO THE LUCRATIVE ASSETMANAGEMENT AND PRIVATEBANKING MARKETS TRYING TO BEAT UBS AND OTHER SWISS BANKS AT THEIR OWN GAME AMID THE FRAY THE 54YEAROLD MR STUDER VOWS TO STICK TO UBS'S CONSERVATIVE STRATEGY WHILE MOVING TO STRENGTHEN THE BANK INTERNATIONALLY IN FRANCE UBS IS BUILDING UP ITS HITHERTO SMALL INVESTMENTBANKING OPERATIONS IN THE US THERE HAVE BEEN SUGGESTIONS THAT UBS MIGHT BE INTERESTED IN BUYING LEHMAN BROS FROM AMERICAN EXPRESS CO TO PLUG ANOTHER GAP IN UBS'S INVESTMENTBANKING CAPABILITIES UBS OFFICIALS CONFIRM THAT CONTACTS HAVE TAKEN PLACE THOUGH THEY AREN'T IN AN ADVANCED STAGE AND UBS IS READY TO ACT QUICKLY ON A MAJOR ACQUISITION LAST MONTH IT OBTAINED SHAREHOLDER APPROVAL OF AN INCREASE IN THE BANK'S CAPITAL BY 200 MILLION SWISS FRANCS 136 MILLION IN RECENT YEARS THE BANK'S CONSERVATIVE STRATEGY HAS PAID OFF IN DISASTERS AVOIDED UNLIKE OTHER SWISS BANKS UBS HAS BEEN NOTICEABLE FOR ITS ABSENCE FROM EXPOSURE IN SUCH NOTORIOUS CORPORATE COLLAPSES AS WERNER REY'S OMNI GROUP ROBERT MAXWELL'S MEDIA EMPIRE AND THE OLYMPIA & YORK REALESTATE GROUP ESTIMATES PUBLISHED BY GOLDMAN SACHS IN LONDON INDICATE SWISS BANK CORP TOOK A HIT OF MORE THAN 200 MILLION SWISS FRANCS AND CREDIT SUISSE 40 MILLION SWISS FRANCS ON LOANS TO THE MAXWELL GROUP IN 1991 IN 1992 CREDIT SUISSE IS ESTIMATED TO HAVE SET ASIDE 175 MILLION SWISS FRANCS IN PROVISIONS FOR LOSSES ON LOANS TO OLYMPIA & YORK GOLDMAN SACHS SAYS THE TRADEOFF FOR UBS HAS BEEN A LOW RETURN ON EQUITY ITS 1992 NET EARNINGS AT 13 BILLION SWISS FRANCS WERE WELL AHEAD OF THOSE OF ITS TWO MAIN SWISS RIVALS CS HOLDING AND SBC AND EARLIER THIS MONTH UBS ANNOUNCED A FURTHER STRONG INCREASE IN EARNINGS FOR THE FIRST QUARTER OF THIS YEAR HOWEVER THE 1992 NET PROFIT FIGURE AMOUNTED TO ONLY 72 OF SHAREHOLDERS' FUNDS AT THE START OF LAST YEAR COMPARED WITH A TARGET OF 15 SET BY OTHER LEADING BANKS AND ALREADY MET BY SOME MR STUDER ATTRIBUTES UBS'S COMPARATIVELY LOW RETURNS TO A HIGHER THAN AVERAGE RATIO OF CAPITAL TO ASSETS CURRENTLY THE RATIO IS ABOVE 10 COMPARED WITH INTERNATIONAL MINIMUM STANDARDS IN THE WEST OF 8 INCLUDED IN THE RATIO IS TIER ONE CAPITAL OR SHAREHOLDERS EQUITY EQUIVALENT TO 81 OF TOTAL ASSETS TWICE AS HIGH AS THE INTERNATIONAL MINIMUM OF 4 MOST OTHER LEADING BANKS ARE AIMING AT JUST OVER 6 WE ARE RUNNING A VERY HIGH CAPITAL RATIO ON PURPOSE MR STUDER SAYS BECAUSE WE THINK THAT IS IMPORTANT IN TODAY'S TURBULENT WORLDBANKING ENVIRONMENT A HIGH CAPITAL RATIO PROVIDES A CUSHION AGAINST UNEXPECTED PROBLEMS AND INTERNATIONAL BANKING REGULATORS ARE GRADUALLY INTRODUCING HIGHER CAPITAL REQUIREMENTS FOR CERTAIN ACTIVITIES BANKING ANALYSTS ARE UNANIMOUS IN HAILING UBS'S EXCELLENCE UBS IS TOP QUALITY SAYS BEAT PHILIPP HEAD OF RESEARCH AT BANK VONTOBEL IN ZURICH IN A NATION WHOSE BANKERS ARE KNOWN FOR CONSERVATISM UBS IS HIGHLY CONSERVATIVE SAYS MARTIN JETZER CHIEF ECONOMIST AT GUYERZELLER BANK AND YET NOT EVERYONE IS ENTIRELY SATISFIED BECAUSE OF ITS HIGH CAPITAL RATIOS SAYS IAN MCEWEN AN ANALYST AT MERRILL LYNCH & CO IN LONDON UBS DOESN'T GIVE SHAREHOLDERS AS MUCH VALUE AS IT COULD ITS ASSETMANAGEMENT OPERATION IS HIGHLY PROFITABLE BUT ITS SWISS BANKING OPERATION IS LESS LUCRATIVE HE SAYS ACCORDING TO SUSAN STERNGLASS AT GOLDMAN SACHS CLOSE TO 60 OF UBS'S PROFITS IN 1992 WERE GENERATED BY THE BANK'S PRIVATEBANKING OPERATIONS IF THE SWISS BANKING OPERATIONS WERE SPLIT OFF LEAVING UBS TO CONCENTRATE ON ASSETMANAGEMENT MS STERNGLASS SUGGESTS RETURNS TO SHAREHOLDERS COULD BE CONSIDERABLY ENHANCED AS IT IS SHE SAYS UBS IS HIGHLY SUCCESSFUL BUT STODGY AND SOME NEGATIVE UNDERCURRENTS HAVE BECOME APPARENT RECENTLY UBS'S BOARD HAS BEEN RATTLED BY A FIGHT OVER SWITZERLAND'S ROLE IN EUROPE UNDER A PROPOSAL THAT WOULD HAVE LINKED IT TO THE EUROPEAN COMMUNITY WHILE A MAJORITY OF UBS BOARD MEMBERS FAVOR SWITZERLAND'S JOINING THIS SOCALLED EUROPEAN ECONOMIC AREA INDUSTRIALIST CHRISTOPH BLOCHER CAMPAIGNED AGAINST IT SWISS VOTERS REJECTED THE IDEA IN A REFERENDUM LAST FALL LAST MONTH HE WAS OUSTED FROM THE BOARD LATELY TOO UBS'S CHAIRMAN NIKOLAUS SENN HAS BEEN DRAWN INTO THE MORASS OF ITALY'S FINANCIAL AND POLITICAL SCANDALS ITALIAN FINANCIER FLORIO FIORINI ALLEGES HE TOLD MR SENN IN 1981 THAT A BANK ACCOUNT WITH UBS IN LUGANO WAS BEING USED FOR PURPOSES THAT NEEDED TO BE KEPT SECRET ACCORDING TO MR FIORINI WHO AT THE TIME WAS FINANCIAL DIRECTOR OF ENTE NAZIONALE IDROCARBURI THE ITALIAN STATE ENERGY CONCERN MR SENN PROMISED TO STAND IN THE WAY OF ANY REQUEST BY THE ITALIAN JUDICIARY FOR DETAILS ABOUT THE ACCOUNT MR SENN HAS DENIED THE ALLEGATIONS STATING THAT HE HAD TOLD MR FIORINI THE ACCOUNT WOULD BE PROTECTED BY NORMAL SWISS BANKING SECRECY THE SWISS BANKING COMMISSION ASKED UBS FOR AN EXPLANATION OF THE ALLEGATIONS BUT NO LEGAL ACTION AGAINST UBS OR MR SENN IS EXPECTED HOWEVER THE ACCOUNT IN QUESTION HAS BEEN IDENTIFIED AS ONE USED FOR THE TRANSFER OF ILLEGAL PAYMENTS TO THE ITALIAN SOCIALIST PARTY MR FIORINI IS CURRENTLY BEING HELD IN A SWISS JAIL UNDER SUSPICION OF FRAUD IN CONNECTION WITH THE 1992 BANKRUPTCY OF FINANCIAL HOLDING COMPANY SASEA SUCH SCANDALS ARE TARNISHING SWISS BANKING AND THE CONNECTION WITH MR FIORINI IS AN EMBARRASSMENT TO UBS ADDITIONALLY CRITICS BLAME UBS FOR RIGIDITY AND LACK OF ADVENTUROUSNESS ITS CONSERVATIVE IMAGE IS BOTH AN ADVANTAGE AND A DISADVANTAGE COMMENTS A SWISS BANKER WHO WATCHES UBS CLOSELY WHEN IT COMES TO ORGANIZING A STRATEGY ITS DISADVANTAGE IS THAT ITS MANAGERS AREN'T SUFFICIENTLY FLEXIBLE BUT THINGS HAVE BEEN LOOKING UP FOR UBS A SQUEEZE ON SWISS BANKS' DOMESTIC INTERESTRATE MARGINS WHICH ARE AMONG THE LOWEST IN EUROPE HAS BEGUN TO EASE A DRIVE TO CUT COSTS AND FOCUS UBS'S RETAILBANKING ACTIVITIES MORE SHARPLY IS BEGINNING TO SHOW RESULTS IN LONDON THE BANK'S PHILLIPS & DREW UNIT RECENTLY RENAMED UBS LTD WAS BACK IN THE BLACK LAST YEAR AFTER YEARS OF RED INK AND HAD A STRONG FIRST QUARTER THIS YEAR THERE ARE STILL CLOUDS IN SWITZERLAND PROVISIONS FOR BAD DEBTS ARE EXPECTED TO REMAIN HIGH THIS YEAR THOUGH UBS HAS BEGUN TO CUT ITS STAFF NUMBERS BY 400 LAST YEAR AND A FURTHER 1800 ARE PLANNED BY THE END OF 1995 ANALYSTS QUESTION IF THIS IS ENOUGH I THINK THEY COULD BE MORE AGGRESSIVE SAYS BOB YATES AN ANALYST FOR BROKERAGE FOXPITT KELTON IN LONDON SWISS BANKS ALTHOUGH THEY HAVE LOW MARGINS ARE IN A STABLE SITUATION THEY'RE NOT GETTING WORSE SAYS MR YATES IF THEY CAN GET THEIR COSTS DOWN A BIT THEY MAY IMPROVE 9306010018 930601 WHO'S NEWS REXON INC REXON INC SIMI VALLEY CALIF ROBERT C GENESI WAS NAMED PRESIDENT AND CHIEF OPERATING OFFICER OF THIS MAKER OF TAPE DRIVES TAPEDRIVE SYSTEMS AND COMPUTERRELATED PRODUCTS MR GENESI 55 YEARS OLD PREVIOUSLY WAS PRESIDENT AND CHIEF OPERATING OFFICER OF READRITE CORP HE SUCCEEDS MICHAEL O PRELETZ 54 WHO CONTINUES AS CHAIRMAN AND CHIEF EXECUTIVE OFFICER 9306010017 930601 FOREIGN EXCHANGE DOLLAR HURT BY WEAK US ECONOMY LOW RATES POLITICS FACES ROUGH WEEK BY DIANE DIMOND SPECIAL TO THE WALL STREET JOURNAL NEW YORK UNDER ASSAULT ON SEVERAL FRONTS THE DOLLAR IS IN FOR A ROUGH WEEK WHILE THE YEN HAS SPECULATIVE MOMENTUM ON ITS SIDE AND THE MARK IS FIRM BECAUSE GERMAN INTEREST RATES HAVE PAUSED ON THEIR WAY DOWN THE DOLLAR IS BEING HURT BY THE WEAK US ECONOMY LOW AMERICAN INTEREST RATES AND POLITICS EARLY LAST WEEK THE DOLLAR FIRMED AGAINST THE MARK ON REPORTS THAT THE FEDERAL RESERVE BOARD WAS LEANING TOWARD TIGHTER MONETARY POLICY BUT THAT HOPE EVAPORATED WITH NEWS THAT DURABLEGOODS ORDERS AND GROWTH IN GROSS DOMESTIC PRODUCT WERE WEAKER THAN ANALYSTS HAD EXPECTED THAT THROWS OUT ANY THOUGHTS OF THE FED TIGHTENING SAYS EARL JOHNSON FOREIGN EXCHANGE ADVISER AT HARRIS TRUST & SAVINGS BANK IN CHICAGO AND WITH GERMAN MONETARY POLICY ON HOLD AMID WARNINGS ABOUT INFLATION FROM GERMAN CENTRAL BANK OFFICIALS CURRENCY PLAYERS WON'T BE PLACING BETS ON A NARROWING OF THE INTERESTRATE DIFFERENTIAL BETWEEN THE US AND GERMANY THE DOLLAR'S PLUNGE AGAINST THE YEN IS ALSO SPILLING OVER TO THE MARK YOU CAN'T HAVE THE DOLLAR GO TO ALLTIME LOWS EVERY HOUR AND NOT EXPECT THAT TO AFFECT OTHER CURRENCIES SAYS MICHAEL MALPEDE SENIOR CURRENCY ANALYST AT REFCO INC IN CHICAGO IT DOESN'T WORK THAT WAY MEANWHILE TRADERS ARE IMPATIENT AND DISAPPOINTED WITH WASHINGTON'S HANDLING OF ECONOMIC POLICY FURTHER UNDERMINING THE US CURRENCY ANALYSTS CITE THE NARROW MARGIN WITH WHICH PRESIDENT CLINTON'S ECONOMIC PACKAGE PASSED THE HOUSE OF REPRESENTATIVES LAST WEEK AND THE OBSTACLES THE PACKAGE FACES IN THE SENATE AS EVIDENCE OF INEFFECTIVENESS IN ECONOMIC POLICY THE DOLLAR DECLINED 3 AGAINST THE JAPANESE CURRENCY LAST WEEK TRADING AT 10695 YEN LATE FRIDAY IN NEW YORK DOWN FROM 11030 YEN AT THE END OF THE PREVIOUS WEEK THE DOLLAR WAS DOWN 2 AGAINST THE MARK AT 15875 MARKS COMPARED WITH 16253 MARKS A WEEK EARLIER WITH FOREIGNEXCHANGE TRADING KEPT THIN YESTERDAY BECAUSE OF HOLIDAYS IN THE US AND EUROPE THE DOLLAR WAS QUOTED AT 10738 YEN AND 15915 MARKS IN TOKYO ABOUT MIDDAY TUESDAY IN TOKYO THE DOLLAR WAS TRADING AT 10725 YEN AND AT 15940 MARKS INTERVENTION BY THE FEDERAL RESERVE BANK OF NEW YORK AND THE BANK OF JAPAN GAVE THE DOLLAR TEMPORARY SUPPORT LAST WEEK BUT TRADERS AND ANALYSTS EXPECT IT TO FALL FURTHER IN COMING DAYS THAT'S PARTLY BECAUSE THEY ARE SKEPTICAL ABOUT US TREASURY UNDERSECRETARY LAWRENCE SUMMERS'S ASSERTION THAT THE US ISN'T SEEKING A WEAKER DOLLAR AS A MEANS OF NARROWING THE TRADE DEFICIT WITH JAPAN MORE AGGRESSIVE INTERVENTION MIGHT CONVINCE THEM THEY SAY BUT THEY ADD THAT IT MAY TAKE JAPANESE CONCESSIONS ON TRADE ISSUES TO LEND CREDIBILITY TO US OFFICIAL STATEMENTS ABJURING A WEAKDOLLAR POLICY THE MARKET CONTINUES TO BE CONVINCED THAT THE CLINTON ADMINISTRATION WANTS A STRONGER YEN SAYS MR JOHNSON OF HARRIS TRUST BUT THE SPECULATION AGAINST THE DOLLAR HAS TAKEN ON A LIFE INDEPENDENT OF TRADEPOLICY TALK TRADERS NOW ARE INCLINED TO SEE HOW LOW THEY CAN DRIVE THE DOLLAR LAST WEEK THEY TOOK FED INTERVENTION AS AN OPPORTUNITY TO SELL MORE DOLLARS BEFORE PRICES SANK EVEN FURTHER INSTITUTIONAL PLAYERS SAID TO HAVE LARGE SHORTDOLLAR OR OVERSOLD POSITIONS HAVE EVERY REASON TO KEEP DRIVING PRICES DOWN BY THE END OF LAST WEEK SOME TRADERS WERE ANTICIPATING THAT THE DOLLAR WILL SINK THROUGH THE 105YEN LEVEL BETTER NEWS ON THE US ECONOMY COULD HELP THE DOLLAR THIS WEEK ANALYSTS SAY IN PARTICULAR A READING OF MORE THAN 50 FROM THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT'S MAY INDEX TO BE RELEASED TODAY OR A SIGNIFICANT GAIN IN NONFARM PAYROLLS DUE FRIDAY WOULD OFFSET LAST WEEK'S DATA STILL THE DOLLAR MUST CONTEND WITH DISENCHANTMENT WITH PROGRESS TOWARD DEFICIT REDUCTION AND CYNICISM ABOUT THE CLINTON ADMINISTRATION'S MANAGEMENT OF ECONOMIC POLICY TRADERS AND ANALYSTS SAY THE MARKET IS NOT ONLY DISCOURAGED BY THE LACK OF GOOD ECONOMIC NEWS BUT BY WHAT THEY SEE IN WASHINGTON AS WELL SAYS ERIC NICKERSON FOREIGN EXCHANGE ECONOMIST AT BANK OF AMERICA THAT'S MORE DIFFICULT TO TURN AROUND 9306010016 930601 INTERNATIONAL BRIEF NEC CORP JAPANESE CONCERN REGISTERS PRETAX LOSS OF 350 MILLION NEC CORP A LEADING JAPANESE HIGHTECHNOLOGY CONCERN POSTED A PRETAX LOSS OF 3769 BILLION YEN 350 MILLION IN THE YEAR ENDED MARCH 31 AS WEAK ECONOMIES AT HOME AND ABROAD STYMIED DEMAND FOR MAINSTAY GOODS SUCH AS COMPUTERS A YEAR EARLIER IT HAD PRETAX PROFIT OF 5145 BILLION YEN NEC SAID THAT WEAKNESS IN THE JAPANESE AND EUROPEAN ECONOMIES DRAGGED DOWN DEMAND FOR COMPUTERS COMMUNICATIONS EQUIPMENT AND ELECTRONIC DEVICES THE COMPANY SAID IT IS LOOKING FOR THE BUSINESS ENVIRONMENT TO REMAIN SEVERE IN THE CURRENT YEAR WITH THE STRENGTH OF THE YEN AGAINST OTHER MAJOR CURRENCIES A NEGATIVE BUT NEC SAID IT EXPECTS THE JAPANESE GOVERNMENT'S FISCAL STIMULUS MEASURES TO SPUR THE DOMESTIC ECONOMY LEADING TO AN INCREASE IN SALES AND A RETURN TO PROFITABILITY 9306010015 930601 SECURITIES OFFERING CALENDAR THE FOLLOWING US TREASURY CORPORATE AND MUNICIPAL OFFERINGS ARE TENTATIVELY SCHEDULED FOR SALE THIS WEEK ACCORDING TO DOW JONES CAPITAL MARKETS REPORT AMERICAN SAFETY RAZOR INITIAL FIVE MILLION SHARES VIA SMITH BARNEY ASTRO TANKERS LTD INITIAL FIVE MILLION SHARES VIA LEHMAN BROTHERS BURLINGTON RESOURCES INC INITIAL 74 MILLION SHARES OF BENEFICIAL INTEREST VIA SMITH BARNEY DISCOVERY ZONE INC INITIAL 23 MILLION SHARES VIA MERRILL LYNCH EDMARK CORP 575000 COMMON SHARES VIA PIPER JAFFRAY FACTORY STORES OF AMERICA INITIAL 53 MILLION SHARES VIA SMITH BARNEY WEST PENN POWER CO 102 MILLION OF FIRST MORTGAGE BONDS DUE 1998 AND 80 MILLIO N OF FIRST MORTGAGE BONDS DUE 2003 VIA COMPETITIVE BIDDING PROVINCE OF BRITISH COLUMBIA 125 BILLION CANADIAN OF GLOBAL BONDS DUE 2003 SAN BERNARDINO COUNTY CALIF 2545 MILLION 199394 TAX AND REVENUE ANTICIPATION NOTES VIA COMPETITIVE BID ANAHEIM PUBLIC FINANCING AUTHORITY CALIF APPROXIMATELY 140 MILLION SERIES 199 3 ELECTRONIC SYSTEM REVENUE BONDS VIA COMPETITIVE BID PENNSYLVANIA 173 MILLION SECOND SERIES 1993 GENERAL OBLIGATION IMPROVEMENT BOND S VIA COMPETITIVE BID ALLEGHENY COUNTY PA 140 MILLION AIRPORT REVENUE BONDS VIA A SMITH BARNEY HA RRIS UPHAM & CO GROUP AUSTIN TEXAS 250 MILLION UTILITY SYSTEM REFUNDING REVENUE BONDS VIA A LEHMAN BROTHERS GROUP COLORADO HEALTH FACILITIES AUTHORITY 200 MILLION HOSPITAL REVENUE BONDS FOR THE ROCKY MOUNTAIN HEALTH CARE PROJECT VIA A FIRST BOSTON CORP GROUP DADE COUNTY FLA 160 MILLION HOSPITAL REVENUE BONDS VIA A LEHMAN BROTHERS GROUP DISTRICT OF COLUMBIA 335 MILLION GENERAL OBLIGATION REFUNDING BONDS VIA A GOLD MAN SACHS & CO GROUP MARYLAND HEALTH & HIGHER EDUCATION AUTHORITY 115 MILLION HOSPITAL REVENUE BONDS FOR THE UNIVERSITY OF MARYLAND MEDICAL SYSTEM VIA AN ALEX BROWN & SONS INC GROUP MICHIGAN HOUSING DEVELOPMENT AUTHORITY 212 MILLION RENTAL HOUSING REVENUE BONDS VIA A GOLDMAN SACHS & CO GROUP NEW YORK STATE DORMITORY AUTHORITY 800 MILLION REFUNDING REVENUE BONDS VIA A GOLDMAN SACHS & CO GROUP OHIO MUNICIPAL ELECTRIC GENERATION AGECY JOINT VENTURE 1587 MILLION BENEFICIAL INTEREST CERTIFICATES FOR THE BELLEVILLE HYDROELECTRIC PROJECT VIA A MORGAN STANLEY & CO GROUP PUERTO RICO PUBLIC BUILDINGS AUTHORITY 515 MILLION SERIES L AND M BONDS VIA A FIRST BOSTON CORP GROUP 9306010014 930601 REUTERS OFFERS NEW SERVICE DUBLIN REUTERS HOLDINGS PLC LAUNCHED THE IRISH NEWS SERVICE A COMPREHENSIVE REALTIME NEWS SERVICE FOCUSING ON IRISH FINANCIAL MARKETS FOR BOTH LOCAL AND INTERNATIONAL INVESTORS REUTERS SAID THREE REPORTERS IN DUBLIN WILL MONITOR THE IRISH EQUITIES DEBT AND MONEY MARKETS THE SERVICE WILL BE AVAILABLE VIA THE STANDALONE PERSONAL COMPUTERBASED REUTERS TERMINAL OR VIA A DATAFEED IT WILL BE MADE AVAILABLE FREE OF CHARGE TO THE MAJORITY OF REUTERS 640 EXISTING USERS IN IRELAND 9306010013 930601 BUSINESS BRIEF NESTLE UNIT SUES BABY FORMULA FIRMS ALLEGING CONSPIRACY WITH PEDIATRICIANS LOS ANGELES NESTLE FOOD CO A UNIT OF SWITZERLAND'S NESTLE SA SUED LEADING AMERICAN PRODUCERS OF BABY FORMULA AND THE AMERICAN ACADEMY OF PEDIATRICS ALLEGING A CONSPIRACY TO BLOCK COMPETITORS FROM THE LUCRATIVE US MARKET THE SUIT FILED IN FEDERAL COURT IN LOS ANGELES ALLEGES THAT ABBOTT LABORATORIES BRISTOLMYERS SQUIBB CO AND A BRISTOL SUBSIDIARY MEAD JOHNSON & CO CONSPIRED WITH THE AMERICAN ACADEMY OF PEDIATRICS TO CREATE A CODE OF MARKETING PRACTICES THAT DISCOURAGED DIRECT ADVERTISING OF BABY FORMULA THE MIXTURE OF MILK AND VITAMINS OFTEN GIVEN TO BABIES IN LIEU OF BREAST FEEDING ABBOTT LABORATORIES BASED IN NORTH CHICAGO ILL DECLINED THROUGH A SPOKESWOMAN TO COMMENT A SPOKESMAN FOR BRISTOLMYERS SQUIBB NEW YORK SAID WE HAVE NOT YET SEEN THE FILING AND ARE UNABLE TO COMMENT OFFICIALS OF THE AMERICAN ACADEMY OF PEDIATRICS COULDN'T BE REACHED BUT JAMES E STRAIN THE GROUP'S EXECUTIVE DIRECTOR HAS SAID THE GROUP'S STANCE AGAINST ADVERTISING WAS INTENDED TO PROMOTE BREAST FEEDING AND NOT TO INHIBIT COMPETITION NESTLE ALLEGED IN ITS SUIT THAT PROHIBITION OF DIRECT MARKETING AND ADVERTISING HAS FAVORED INDUSTRY LEADERS WHO WITH THE ACADEMY HAVE DEVELOPED A SYSTEM OF ETHICAL MARKETING OF THE TYPE USED TO SELL PRESCRIPTION DRUGS IN WHICH LARGE SALES FORCES DEAL DIRECTLY WITH DOCTORS AND DISTRIBUTE FORMULA SAMPLES TO HOSPITALS AND HEALTH CARE PROFESSIONALS TO GIVE TO NEW MOTHERS ACCORDING TO THE SUIT THE LARGE SALES FORCE REQUIRED FOR SUCH MARKETING IS AN ARTIFICIAL BARRIER TO THE MARKET THAT VIOLATES ANTITRUST LAW THE MARKET FOR INFANT FORMULA WAS THE SUBJECT OF A PAGE ONE STORY IN THIS NEWSPAPER LAST MONTH THE ARTICLE NOTED THAT ON 18 OCCASIONS SINCE 1980 THROUGH THIS YEAR ABBOTT HAS RAISED THE PRICE OF ITS SIMULAC FORMULA BY A TOTAL OF 207 OR SIX TIMES THE PRICE OF MILK THE MAIN INGREDIENT OF INFANT FORMULA NESTLE ALLEGES IN ITS SUIT THAT ITS COMPETITORS ENTERED INTO EXCLUSIVE AGREEMENTS WITH HOSPITALS AND SET WHOLESALE PRICE INCREASES IN LOCKSTEP FASHION WHILE CONCEALING CONCERTED ACTION BY ALTERNATING LEADERSHIP IN SETTING PRICES THE WORLD'S LARGEST FOOD COMPANY AND A MAJOR MARKETER OF BABY FORMULA OUTSIDE THE US NESTLE AND ITS CARNATION UNIT ARE ESTIMATED TO HOLD ABOUT 5 OF THE US MARKET FOR INFANT FORMULA ABBOTT LABORATORIES WITH ITS SIMULAC BRAND IS BELIEVED TO HOLD ABOUT A 51 MARKET SHARE BRISTOLMYERS AND WITH ITS ENFAMIL BRAND AMONG OTHERS IS BELIEVED TO HOLD A 27 SHARE ABBOTT LABORATORIES LAST WEEK SETTLED FOR MORE THAN 140 MILLION ALLEGATIONS OF FEDERAL ANTITRUST VIOLATIONS BY 27 DRUGSTORE AND FOOD CHAINS AND THE FLORIDA ATTORNEY GENERAL THE COMPANY ALSO FACES NINE STATECOURT LAWSUITS RELATED TO ALLEGED PRICEFIXING AS WELL AS ANTITRUST CASES FILED LAST YEAR BY THE FEDERAL TRADE COMMISSION 9306010012 930601 BUSINESS WORLD DEDUCT ANOTHER PLANK FROM CONVENTION HALLS OF DREAMS BY TIM W FERGUSON ONLY A FEW YEARS AGO THE CIVIC POOHBAHS OF AMERICA SAW AN INCREDIBLE OPPORTUNITY PERHAPS 40 MILLION TIMES A YEAR US RESIDENTS TRAVELED TO SOME KIND OF CONVENTION TRADE SHOW OR SEMINAR THEY WOULD STAY IN AN OVERPRICED HOTEL BE WINED AND DINED AND MAYBE TAKE IN SOME NAME ENTERTAINMENT OR CHAMPIONSHIP GOLF BECAUSE IT WAS NEARLY ALL BUSINESS THE FEDERAL GOVERNMENT WOULD COUNTENANCE A FULL INCOMETAX DEDUCTION WHAT A PARTY WHY NOT THOUGHT EACH POOHBAH PUT MY GRAND OLD TOWN ON THE CIRCUIT AND SO IN THE NAME OF THE TAXPAYERS GREAT CONVENTION HALLS WERE BUILT AND IF THE RIGHT FINANCING COULD BE SWUNG GUEST ROOMS FOR THE VISITING MULTITUDES AS WELL BUT THE PICTURE BEGAN TO CHANGE EVEN BEFORE THE CONCRETE WAS DRY THE EMPLOYERS THAT SPAWNED THE HORDES OF NOMADIC CONVENTIONEERS CAME UNDER MARKET PRESSURE AND STARTED SENDING THEIR REMAINING PEOPLE INSTEAD TO SMALLER AND MORE TARGETED GATHERINGS FOR 100 INSTEAD OF 1000 OR 10000 MEANTIME THE TRADESHOW CROWDS PROVED CHOOSY ABOUT WHERE THEY'D CARE TO GO AND FEDERAL LAWMAKERS BEGAN TO PEEL BACK THE DEDUCTIBILITY OF MEALS AND ENTERTAINMENT EXPENSES THIS LAST THEY ARE DOING AGAIN IN THE TAX BILL APPROVED BY THE HOUSE OF REPRESENTATIVES LAST WEEK IT WOULD REDUCE THE WRITEOFF TO 50 FROM 80 THAT WOULD MORE THAN DOUBLE THE REAL COST TO THE PARTICIPANTS OR THEIR COMPANIES OF A GOOD PART OF THE CONVENTION FUN UNTIL THE LATE 1980S THE DECADE HAD SEEN AN EXPLOSION IN THE BIGEVENT BUSINESS SAYS THOMAS GORSKI AN OFFICIAL OF THE AMERICAN SOCIETY OF ASSOCIATION EXECUTIVES IT JUST WENT WILD SOME INDUSTRIES WENT FROM HAVING ONE SHOW TO HAVING A DOZEN BUT THEN RECESSION BROUGHT MATTERS TO A HEAD ATTENDANCE AT TRADEASSOCIATION CONVENTIONS FELL TO 86 MILLION IN 1991 FROM 136 MILLION IN 1989 AND THERE'S BEEN LITTLE UPTICK SINCE THE TOP MEETING SITES ESPECIALLY FOR TRADE SHOWS IN BOOMING INDUSTRIES HAVE CONTINUED TO PROSPER BUT IN HUMDRUM AMERICAN CITIES CONVENTIONCENTER OCCUPANCY RATES ARE CAVING IN SAYS DAVID PETERSEN MANAGING DIRECTOR FOR PRICE WATERHOUSE WHO FOLLOWS THIS FIELD HIS FIRM FINDS THAT ATTENDANCE AT CENTERS IN MAJOR US DESTINATION SPOTS MORE THAN 20000 HOTEL ROOMS WILL INCREASE 10 THIS YEAR IN MIDDLERUNG CITIES 1000020000 ROOMS THE CONVENTION ROLLS WILL DROP 16 IN THOSE LESSER DRAWS PUBLIC OFFICIALS HAD PUSHED NEW FACILITIES AFTER MEETING PLANNERS CITED A SHORTAGE OF SPACE AS A REASON FOR NOT COMING BUT THIS WAS A FIB THE CRUEL TRUTH WAS THAT FEW WOULD PAY TO VISIT SOUTH SUCCOTASH WHATEVER ITS HALL OF DREAMS MAYORS OF SUCH PLACES AREN'T GOING TO BE ABLE TO LURE HOTELS BACK DOWNTOWN NO MATTER HOW MANY RIBBONS THEY CUT BUT STILL THEY TRY NOW COMES A TAX MOVE THAT COULD LEAVE MORE MUNICIPALITIES SORRY THEY GOT INTO THIS GAME NORMALLY CITIES ARE ALL FOR CLOSING FEDERAL LOOPHOLES EXCEPT THOSE FOR LOCAL BONDS AND TAXES THEY FIGURE IT MEANS FAR MORE LOOT FOR THEM DOWN THE CHAIN BUT THIS CHANGE COULD BRING MORE TROUBLE FOR ONE OF THEIR SPLASHIEST DEVELOPMENT SCHEMES THE POOHBAHS' PLIGHT IS ACTUALLY THE BEST ARGUMENT FOR DISPENSING WITH THIS DEDUCTION THE TAX BREAK HELPS TO PROP UP A NICHE OF THE HOSPITALITY INDUSTRY THE CAVERNOUS HALLS AND HIGHRISE HOTELS THAT ARE CHASING THIS TRADE COME AT THE EXPENSE OF OTHER INVESTMENT ELSEWHERE IN THE ECONOMY NO WONDER SO LITTLE RUCKUS HAS BEEN MADE OUTSIDE OF THE NARROW INTEREST GROUPS ABOUT CURBING THIS BREAK THE MEALANDENTERTAINMENT INDUCEMENT FOR CONVENTION GOING AS FOR THE THREEMARTINI LUNCH CLOSER TO HOME IS OF ONLY SYMBOLIC NOTE FISCALLY THE CHANGE THAT BILL CLINTON AND CONGRESS HAVE IN MIND WOULD RAISE LESS THAN 15 BILLION A YEAR AND THEY WOULD PROBABLY WASTE THAT BUT THE MICROECONOMIC IMPERATIVE TO END THE DISTORTION FOR FRIVOLITY YET REMAINS THE DENVERBASED TRADE SHOW BUREAU ESTIMATES EACH DELEGATE TO THESE USUALLY FOURDAY AFFAIRS SPENDS NEARLY 1000 AFTER ARRIVING MOST OF THAT GOES FOR ROOMS AN EXPENSE THAT WILL STILL BE 100 DEDUCTIBLE LIKEWISE THE REGISTRATION FEE ISN'T REGARDED AS COVERING MEALS AND ENTERTAINMENT ALTHOUGH IT SOMETIMES DOES BUT THAT STILL LEAVES SAY 25 TO BE AFFECTED BY THE TAX CHANGE AT ONLY HALF DEDUCTIBILITY PLAYTIME WOULDN'T BE SO CHEAP WHAT ANCILLARY ACTIVITY IS INVOLVED A TAX GUIDE FROM ACCOUNTANTS GRANT THORNTON NOTES THAT CONVENTIONEERS CAN DEDUCT ENTERTAINMENT EXPENDITURES FOR BUSINESS ASSOCIATES AND THEIR SPOUSES AT NIGHT CLUBS THEATERS BALL GAMES AND SIMILAR PLACES AND EVENTS PROVIDED YOU CAN ESTABLISH THAT THE ENTERTAINMENT IS ASSOCIATED WITH' CONDUCTING YOUR BUSINESS THAT ASSOCIATION THE BOOKLET SAYS CAN MEAN IT TAKES PLACE SHORTLY BEFORE OR SHORTLY AFTER THE ACTUAL BUSINESS DISCUSSION HEY WHAT BETTER WAY TO SEE SAN FRANCISCO THAN WITH THE REFRIGERATION FOLKS HOWEVER STRINGENT ANY NEW LIMITS ARE THEY WILL ONLY ADD TO THE CASE THAT TECHNOLOGY IS ALREADY MAKING AGAINST UNNECESSARY BUSINESS TRAVEL THE ONSET OF INTERACTIVE VIDEO COMPLETE WITH GRAPHIC IMAGES SO LIFELIKE THAT IT BECOMES LESS NECESSARY TO KICK THE TIRES ON A REP'S SELECTION OF SAMPLES OUGHT TO MEAN THAT BUYER AND SELLER NEEDN'T BE CLOSE ENOUGH TO SHAKE ON IT OF COURSE WE CAN'T OVERLOOK THE SOCIAL HOUR OF ANY GOOD CONVENTION WHEN PEOPLE NETWORK FOR BETTER JOBS THAN THE ONES THAT BROUGHT THEM THERE MAYBE THE COCKTAIL CHATTER OF THE FUTURE COULD TAKE PLACE INSTEAD OVER AN ELECTRONIC BULLETIN BOARD OR FOR HOT GOSSIP VIA EMAIL IF WE'RE IN THE TWILIGHT OF THE MASS MEETING THE TOP VENUES WILL APPARENTLY BE THE LAST TO GO DARK THE BIG SHOWS IN THE FLASHIEST CITIES AND THOSE NEAR A MAJOR BUSINESS HUB WITH LOADS OF ROOM TO EXHIBIT AND SLEEP PLUS GOOD AIRLINE CONNECTIONS JUST KEEP EXPANDING DARLENE GUDEA THE PUBLISHER AND EDITOR OF TRADESHOW WEEK POINTS TO ATLANTA'S GEORGIA WORLD CONGRESS CENTER ITS GROWTH PERMITTED IN TURN THE EXPANSION OF THE SPORTINGGOODS SUPER SHOW BY 57 IN SQUARE FOOTAGE THIS YEAR OVER LAST THE INTERNATIONAL WOODWORKING MACHINERY AND FURNITURE SUPPLY FAIR THERE WAS UP 17 THE AVERAGE TRADE SHOW NATIONWIDE TOOK ONLY 3 MORE SPACE IN 1993 AS THIS HAPPENS THE LESSER LIGHTS GROW DIMMER OF THE 50 INCREASE IN MEETING FACILITIES IN NORTH AMERICA OVER THE LAST DECADE AND THE EVEN FASTER EXPANSION IN FLOOR SPACE A LOT TOOK PLACE IN SMALLER CITIES AMBITIOUS TO GO BIG TIME THEY'VE MISPLACED THEIR TRUST IN TREND LINES OF THE PAST MAYBE THERE WILL BE ENOUGH NEW TRAFFIC TO SUPPORT THE NEW FACILITIES DUE SOON IN ST LOUIS CHARLOTTE DALLAS AND A DOZEN OTHER CITIES MORE LIKELY HOWEVER IS THAT THE ROSTER OF SECONDTIER SITES NOW STARING INTO AN ABYSS SEE WINSTONSALEM KANSAS CITY HARTFORD SAN JOSE PORTLAND AND MILWAUKEE WILL LENGTHEN THE NEW SOBRIETY OF CORPORATE AMERICA COUPLED WITH AN UNFESTIVE TAX CODE WILL DRY UP THE FROTH OF THE CONVENTION MARKET WORTHWHILE MEETINGS WILL SURVIVE AND THAT'S OK THE RIGHT KIND OF GATHERING FOSTERS ENTREPRENEURISM BUT IN THE FUTURE WE'RE LIKELY TO SEE MORE GETTING DOWN TO BUSINESS AT LEAST UNTIL NOON 9306010011 930601 LEISURE & ARTS HUSBANDWIFE NOVELISTS ENJOY SIDEBYSIDE SUCCESS BY JOANNE KAUFMAN NEW YORK COLIN HARRISON BUMPED OFF HIS WIFE IN THE FIRST CHAPTER OF HIS JUST PUBLISHED SECOND NOVEL BODIES ELECTRIC MEANWHILE KATHRYN HARRISON WHOSE SECOND NOVEL EXPOSURE WAS PUBLISHED IN FEBRUARY HAS SHOWN HERSELF TO BE MORE MERCIFUL I HAVE CREATED CHARACTERS LIKE MY HUSBAND AND I HAVEN'T KILLED THEM OFF YET THERE'S A COLIN CHARACTER IN THE BOOK I'M WORKING ON NOW AND HE HASN'T DIED YET IN FACT SHE GIGGLES HE MAY BE THE ONLY PERSON WHO SURVIVES WHILE THERE ARE MANY HUSBANDWIFE NOVELISTS JOAN DIDION AND JOHN GREGORY DUNNE STEPHEN AND TABITHA KING LOUISE ERDRICH AND MICHAEL DORRIS COME IMMEDIATELY TO MIND THE HARRISONS BOTH 32 ARE AMONG THE VERY FEW PUBLISHED BY THE SAME COMPANY HE BY CROWN AN IMPRINT OF RANDOM HOUSE INC SHE BY RANDOM HOUSE AND AMONG THE FEW WHOSE CAREERS AT LEAST FOR THE MOMENT ARE MOVING AT AN EQUALLY STEADY PACE THEIR FIRST TWO NOVELS WHILE NEITHER BILLETED ON THE BESTSELLER LIST NOR BOUGHT BY HOLLYWOOD HAVE BEEN TREATED ENTHUSIASTICALLY BY THE CRITICS THE HARRISONS WHO ARE AT WORK ON THIRD NOVELS ARE OBVIOUSLY PLEASED BY THE WARM RECEPTION THEY ARE ALSO PLEASED TO HOLD ON TO THEIR LOW PROFILES THUS FAR KNOCK WOOD WE HAVEN'T HAD ANYTHING WE'VE REALLY HAD TO DEAL WITH SAYS MS HARRISON SITTING OVER SANDWICHES WITH HER HUSBAND IN AN OFFICE AT CROWN PUBLISHERS WE HAVEN'T HAD SOME WILD UNNATURAL SUCCESS OR ANY DISMAL FAILURE AND I DON'T KNOW WHAT WOULD HAPPEN UNDER THOSE TERMS BECAUSE IT WOULD BE A TEST I AM BY NATURE A COMPETITIVE PERSON SAYS MR HARRISON WHO WORKS BY DAY AS A SENIOR EDITOR AT HARPER'S MAGAZINE A JOB HE HAS NO IMMEDIATE PLANS TO RELINQUISH BUT IN THE CASE OF KATHY I DON'T FEEL COMPETITIVE I REALLY WANT HER SUCCESS ONLY A SHADE LESS THAN I WANT IT FOR MYSELF I THINK WE'RE INSULATED BY THE FACT THAT WE'RE A MAN AND WOMAN THEY ARE ALSO PROTECTED BY THE FACT THAT THEY WRITE VERY DIFFERENT SORTS OF NOVELS THUS CARVING UP DISCRETE PORTIONS OF THE READERSHIP PIE EXPOSURE TOLD PARTIALLY IN LETTERS AND IN FLASHBACK CENTERS ON A YOUNG WOMAN WHO AS A CHILD WAS THE SUBJECT OF HER FATHER'S CELEBRATED NUDE PHOTOGRAPHS AND WHO BEGINS SPINNING DANGEROUSLY OUT OF CONTROL WHEN A MUSEUM PLANS A MAJOR RETROSPECTIVE OF THE EROTICA MEANWHILE BODIES ELECTRIC A THOROUGHLY PLOTDRIVEN CORPORATE THRILLER CHRONICLES A 35YEAROLD WIDOWER WHOSE STRUGGLE FOR SURVIVAL AT THE TOP OF A TIMEWARNERESQUE COMMUNICATIONS EMPIRE IS COMPLICATED BY HIS PASSIONATE AFFAIR WITH A BEAUTIFUL ENIGMATIC DOMINICAN WOMAN THE EASIEST WAY TO SUM UP THE HARRISONS LINE BY LINE SHE'S A MORE EFFECTIVE AFFECTING WRITER CHAPTER BY CHAPTER HE HAS A STRONGER NARRATIVE SENSE I THINK COLIN IS MORE NATURALLY A STORYTELLER THAN I AM ACKNOWLEDGES MS HARRISON WHO WITH THE HELP OF A BABYSITTER FOR HER TWO YOUNG CHILDREN GENERALLY MAINTAINS A 9 TO 5 WRITING SCHEDULE IF WE WERE INVITED TO A DINNER PARTY IT WOULDN'T BE UNUSUAL AT THE END OF THE EVENING FOR HIM TO LAUNCH INTO A STORY PEOPLE LISTEN AND THAT WOULDN'T HAPPEN TO ME BUT YOU HAVE OTHER SKILLS PROTESTS HER HUSBAND THERE'S AN INTERNAL LANDSCAPE TO YOUR WRITING THAT'S VERY POWERFUL DESPITE THE SPOUSAL CHAMPIONSHIP IF COLIN WEREN'T MARRIED TO KATHRYN HE WOULDN'T HAVE READ EXPOSURE OR FOR THAT MATTER HIS WIFE'S FIRST BOOK THICKER THAN WATER THE STORY OF A TROUBLED MOTHERDAUGHTER RELATIONSHIP THE BOOKS THAT I WANT TO READ ARE ONES THAT ARE GOING TO SOMEHOW TEACH ME SOMETHING AS A NOVELIST AND AS A STORYTELLER ON A BIG FABRIC SAYS MR HARRISON WHO WORKS THE FABRIC NIGHTLY FROM 11 PM TO 2 AM IN A FORMER CLOSET IN THE COUPLE'S BROOKLYN BROWNSTONE AND DURING LUNCH AT A GREASY SPOON ACROSS THE STREET FROM HARPER'S NOT THAT READING KATHY DOESN'T INSTRUCT ME BUT HER STORIES ARE VERY INTERNAL AND THEY HAVE TO DO WITH ISSUES OF BEING A WOMAN IN SOCIETY MAYBE THAT'S PIGHEADED BUT IT'S THE TRUTH IT'S ALSO THE TRUTH THAT BUT FOR HER MARRIAGE TO MR HARRISON MS HARRISON WOULDN'T HAVE READ BODIES ELECTRIC OR HER HUSBAND'S PREVIOUS NOVEL BREAK AND ENTER THE STORY OF AN ASSISTANT DA WHO'S HANDED A JUICY MURDER CASE AT THE SAME TIME HIS MARRIAGE IS DISINTEGRATING COLIN LIKES A BIG FAT DICKENSIAN READ AND I HAVE MORE INTEREST IN FRACTURED NARRATIVES WHATEVER THEIR DIFFERENCES IN STYLE AND AIM BOTH HARRISONS HAVE AN INTEREST IN EXPLORING THE DARK SIDE OF SEXUALITY OF THE SOUL MR HARRISON'S CHARACTERS START OUT WITH A FULL FEAST OF FAT THINGS AND THROUGH TRAGIC FLAWS AND FATE RUIN EVERYTHING AND I THINK MY CHARACTERS START WITH THE DECK STACKED AGAINST THEM AND WHILE I'M NOT WRITING HAPPY STORIES THERE'S HOPE FOR TRANSCENDENCE WHEN THE BOOK IS OVER SAYS MS HARRISON WHO'S JUST COMPLETED THE FIRST DRAFT OF A NOVEL SET IN SPAIN DURING THE INQUISITION COLIN IS INTERESTED IN TRAGEDY I'M INTERESTED IN REDEMPTION WE'RE OPPOSITE AND COMPLEMENTARY IT'S NO MISTAKE WE MARRIED AS THE HARRISONS HAVE LEARNED IN THEIR FIVEYEAR MARRIAGE THERE ARE DECIDED ADVANTAGES IN A UNION BETWEEN NOVELISTS TOTALLY ASIDE FROM THE ECONOMIC BENEFITS OF BUYING COMPUTER PAPER AND PRINTER RIBBON IN BULK THERE'S SO MUCH THAT DOESN'T NEED TO BE EXPLAINED FOR EXAMPLE THE COMPULSION TO SIT AT THE COMPUTER UNTIL TWO IN THE MORNING THE NEED TO WAKE UP AT 3 AM BECAUSE INSPIRATION OR PANIC HAS STRUCK THE VACANT STARE AT THE BREAKFAST TABLE I SEE COLIN AND KNOW HE'S THINKING ABOUT SOME OTHER WOMAN WHO EXISTS TOTALLY IN HIS MIND AND WHO'S GOING TO EXIST IN HIS BOOK SAYS MS HARRISON AND I'M NOT GOING TO FEEL INSULTED OR SLIGHTED BECAUSE MY HUSBAND IS NOT PRESENT WITH ME BECAUSE I DO THE SAME THING WITH HIM WE'RE EACH GOING ON A JOURNEY WHICH IS WHAT WRITING A BOOK IS SAYS MR HARRISON WHOSE CURRENT JOURNEY INVOLVES A ONETIME NEW YORK TABLOID CRIME REPORTER SUMMONED BACK FROM SELFEXILE IN MAINE TO SOLVE A MYSTERY WE UNDERSTAND THAT THE OTHER NEEDS THAT PSYCHIC SPACE OR ENERGY OR WHATEVER IT IS THE HARRISONS CAN ALSO REST CALM IN THE ASSURANCE THAT FOR BETTER OR WORSE EDITING IS ALWAYS AVAILABLE THEY ROUTINELY READ EACH OTHER'S MANUSCRIPTS FREQUENTLY APPENDING SUCH COMMENTS AS STILTED AND THIS IS VERY BAD YOU CAN DO BETTER WHEN WE FIRST STARTED DOING THIS IT WAS A MUCH MORE DIFFICULT INTERACTION SAYS MR HARRISON NOT BECAUSE THERE WASN'T TRUST BUT BECAUSE WE WERE STILL FINDING OUR FOOTING IN THE REGULAR RELATIONSHIP AS WELL AS WHAT WAS IN EFFECT AN ARTISTIC RELATIONSHIP NOW THERE'S A PRAGMATIC REASON FOR DOING THIS SAYS MS HARRISON IT'S HOW WE MAKE OUR LIVING AND WE CAN HELP EACH OTHER BUT I CERTAINLY REMEMBER THAT MY RESPONSE TO COLIN'S CRITICISM A FEW YEARS AGO WAS MORE EXAGGERATED THAN IT IS NOW CERTAINLY WEEPING SHE THINKS VERY CAREFULLY FOR A MINUTE I CAN'T REMEMBER THROWING THINGS MS KAUFMAN IS A WRITER IN NEW YORK 9306010010 930601 WHAT'S NEWS WORLDWIDE LAWMAKERS IN BELGRADE VOTED PRESIDENT COSIC OUT OF OFFICE BOTH HOUSES OF THE YUGOSLAV PARLIAMENT VOTED TO OUST COSIC AFTER HARDLINE SERB NATIONALISTS ACCUSED HIM OF VIOLATING THE CONSTITUTION THE ULTRANATIONALISTS WHO SUPPORT BOSNIA'S SERBS IN THEIR REJECTION OF AN INTERNATIONAL PEACE PLAN PERCEIVED COSIC AS TOO MODERATE SERBIA'S MILOSEVIC COSIC'S FORMER ALLY ALSO APPARENTLY FAVORED HIS OUSTER IN BOSNIA MUSLIMLED GOVERNMENT TROOPS DUG IN OUTSIDE SARAJEVO AFTER PUSHING BACK SERBS A DAY EARLIER SERB SHELLING KILLED TWO DOZEN PEOPLE IN THE CAPITAL THREE ITALIAN CIVILIAN DRIVERS WERE KILLED OVER THE WEEKEND IN CENTRAL BOSNIA BY GUNMEN WEARING BOSNIAN ARMY UNIFORMS UN MILITARY SOURCES SAID PRESIDENT CLINTON NAMED REPUBLICAN ADVISER DAVID GERGEN TO BE A COUNSELOR AND DIRECTOR OF WHITE HOUSE COMMUNICATIONS OVER THE WEEKEND HEARTENING SOME MODERATES AND CONSERVATIVES THE PRESIDENT STILL IS CONSIDERING HIRING HAROLD ICKES A LIBERAL DEMOCRAT FROM NEW YORK TO BE A SENIOR ADVISER CLINTON SPOKE AT THE VIETNAM VETERANS MEMORIAL DECLARING AMID CHEERS AND BOOS THAT DISAGREEMENT IS FREEDOM'S PRIVILEGE CLINTON THE FIRST PRESIDENT IN 50 YEARS WHO HASN'T SERVED IN THE MILITARY ANNOUNCED HE WAS ORDERING THAT NEARLY ALL US MILITARY RECORDS PERTAINING TO MIAS IN VIETNAM BE DECLASSIFIED BY NOVEMBER A TEAM OF US CONGRESSMEN OBTAINED NEW DOCUMENTS FROM THE VIETNAMESE GOVERNMENT IN HANOI INCLUDING A LIST OF AMERICAN THAI SOUTH VIETNAMESE AND SOUTH KOREAN SERVICEMEN TAKEN PRISONER DURING THE VIETNAM WAR VIETNAMESE OFFICIALS ALSO LET THE AMERICANS INTO AN ARCHIVE OF MORE THAN 220 MILITARY FILMS OF PRISONERS OF WAR THE KHMER ROUGE AMBUSHED A UN CONVOY IN CAMBODIA KILLING A PEACEKEEPER AND WOUNDING FIVE A DAY EARLIER THE REBELS FIRED AT FRENCH TROOPS KILLED TWO CAMBODIANS AND SET HOUSES AFIRE THE ATTACKS CAME AFTER LARGELY PEACEFUL ELECTIONS LAST WEEK THE MAIN OPPOSITION PARTY LED THE VOTE COUNT GERMAN POLICE ARRESTED A TEENAGER SUSPECTED OF TAKING PART IN AN ANTIFOREIGNER ATTACK EARLY SATURDAY AND OFFICIALS SAID OTHER ARRESTS MAY FOLLOW THE ATTACKERS SET FIRE TO A HOUSE IN THE WESTERN CITY OF SOLINGEN KILLING TWO TURKISH WOMEN AND THREE GIRLS ANGRY TURKS CLASHED WITH POLICE FOR THE SECOND DAY GERMANY'S HIGHEST COURT STRUCK DOWN A NEW ABORTION LAW FRIDAY AND ORDERED IT TO BE REWRITTEN THE COURT TIGHTENED ABORTION RULES IN THE INTERIM THE COMPROMISE LAW PERMITTED ABORTION IN THE FIRST 12 WEEKS OF PREGNANCY BEFORE UNIFICATION ABORTION ON DEMAND WAS AVAILABLE IN THE EAST WHILE THE WEST HAD A RESTRICTIVE POLICY GUATEMALAN OPPOSITION GROUPS JOINED IN A BROAD FRONT AGAINST PRESIDENT SERRANO DEMANDING HIS RESIGNATION AND PREPARING TO SET UP A POSTSERRANO RETURN TO DEMOCRATIC RULE NOBEL PEACE PRIZE WINNER RIGOBERTA MENCHU MEANWHILE LED A PROTEST MARCH IN THE CAPITAL AGAINST SERRANO WHO SEIZED NEARDICTATORIAL POWERS A WEEK AGO MIAMI REMAINED CALM OVER THE WEEKEND AFTER A JURY ACQUITTED A POLICE OFFICER IN THE SLAYING OF TWO BLACKS IN 1989 MORE THAN 1000 OFFICERS HAD BEEN PUT ON 12HOUR SHIFTS SATURDAY A DAY AFTER THE ORLANDO FLA JURY ACQUITTED SUSPENDED MIAMI POLICEMAN WILLIAM LOZANO IN THE SHOOTING WHICH SPARKED RIOTS IN MIAMI FOUR YEARS AGO MEDICAL INVESTIGATORS SAID THEY ARE BAFFLED BY A MYSTERIOUS ILLNESS WITH FLULIKE SYMPTOMS THAT HAS STRUCK 25 PEOPLE KILLING 11 IN A NAVAJO RESERVATION THAT STRADDLES THE NEW MEXICOARIZONA BORDER THE FIRST CASES WERE DISCOVERED IN JANUARY AND THE LATEST DEATH THAT OF A 13YEAROLD NAVAJO GIRL OCCURRED ON SATURDAY PRIME MINISTER SHARIF OFFERED TO MEET FOR THE FIRST TIME IN FIVE YEARS WITH PAKISTANI OPPOSITION LEADER BHUTTO IN A BID TO END THE POLITICAL TURMOIL THAT LED TO THE DISSOLUTION OVER THE WEEKEND OF TWO PROVINCIAL ASSEMBLIES BHUTTO IMMEDIATELY ACCEPTED THE OFFER SHARIF DISMISSED LAST MONTH WAS REINSTATED AS PRIME MINISTER FIVE DAYS AGO POLISH POLITICIANS URGED WALESA TO SIGN AN ELECTION LAW THAT WOULD PREVENT PARTIES THAT GET FEWER THAN 5 OF THE VOTES FROM TAKING A SEAT IN PARLIAMENT THE PRESIDENT DISSOLVED PARLIAMENT SATURDAY AFTER THE COLLAPSE OF PRIME MINISTER SUCHOCKA'S COALITION IN A CONFIDENCE VOTE SUCHOCKA WAS ASKED TO STAY ON UNTIL AN ELECTION IS HELD 9306010009 930601 DUQUESNE LIGHT REDEMPTION PITTSBURGH DUQUESNE LIGHT CO A UNIT OF DQE INC SAID IT WOULD REDEEM ON JULY 1 ALL 30 MILLION OF ITS 7 SERIES FIRST MORTGAGE BONDS DUE 1999 AT 1013 OF PRINCIPAL AMOUNT 9306010008 930601 ALYESKA SETTLES WHISTLEBLOWER DISPUTE BUT QUESTIONS ABOUT PRACTICES REMAIN BY CHARLES MCCOY STAFF REPORTER OF THE WALL STREET JOURNAL ALYESKA PIPELINE SERVICE CO SETTLED ITS DISPUTE WITH SIX WHISTLEBLOWERS CLOSING ONE CHAPTER IN THE LONGRUNNING CONTROVERSY OVER ITS OPERATING PRACTICES BUT THE GIANT OIL CONSORTIUM STILL FACES SCRUTINY FROM CONGRESSIONAL INVESTIGATORS WHO CONTEND IN INTERVIEWS THAT ALYESKA HAS MISLED THEM IN RECENT WEEKS REP JOHN DINGELL'S SUBCOMMITTEE ON OVERSIGHT AND INVESTIGATIONS INTENDS TO HOLD HEARINGS LATER THIS YEAR ON THE WHISTLEBLOWERS' COMPLAINTS AND OTHER SAFETY ISSUES AT THE TRANSALASKA PIPELINE ACCORDING TO PETER STOCKTON A SENIOR SUBCOMMITTEE INVESTIGATOR ALYESKA OWNED BY EXXON CORP BRITISH PETROLEUM LTD ATLANTIC RICHFIELD CO AND THE OTHER BIG OIL COMPANIES THAT WORK ALASKA'S NORTH SLOPE OPERATES THE TRANSALASKA PIPELINE AND THE OILTANKER LOADING TERMINAL IN VALDEZ ALASKA ON FRIDAY IT SETTLED COMPLAINTS FROM SIX FORMER INSPECTORS AND ENGINEERS WHO ALLEGED THEY WERE FIRED FOR RAISING CONCERNS ABOUT POTENTIALLY DANGEROUS SAFETY AND ENVIRONMENTAL VIOLATIONS AT ALYESKA OPERATIONS THE WHISTLEBLOWERS FILED WRONGFULTERMINATION ACTIONS WITH THE LABOR DEPARTMENT FIVE OF THOSE CASES WERE SET TO GO TO TRIAL BEFORE AN ADMINISTRATIVE LAW JUDGE JUNE 9 UNDER THE SETTLEMENT ALYESKA AGREED TO REHIRE THE FORMER EMPLOYEES AND PAY THEM AN UNDISCLOSED AMOUNT OF MONEY OTHER TERMS WEREN'T DISCLOSED DAVID MARQUEZ ALYESKA'S GENERAL COUNSEL SAID THE COMPANY CONTINUES TO BELIEVE IT WOULD HAVE PREVAILED IN THE CASES BUT CHOSE TO SETTLE THEM TO CUT COSTS THE SETTLEMENT AMOUNTS TO A RETREAT BY ALYESKA THE COMPANY HAD VEHEMENTLY DENIED THE WHISTLEBLOWERS' ALLEGATIONS BUT ITS LEGAL POSITION WAS WEAKENED LAST WEEK BY A LABOR DEPARTMENT RULING THAT ONE OF THE SIX WHISTLEBLOWERS WAS ILLEGALLY FIRED BY THE COMPANY IN THE RULING THE DEPARTMENT SAID THE OTHER WHISTLEBLOWERS ALSO MAY HAVE BEEN FIRED ILLEGALLY THE WHISTLEBLOWER CASES WILL CONTINUE TO REVERBERATE INVESTIGATORS FOR REP DINGELL'S SUBCOMMITTEE WHO HAVE BEEN LOOKING INTO THE WHISTLEBLOWERS' COMPLAINTS OF SAFETY AND ENVIRONMENTAL VIOLATIONS SAY ALYESKA OFFICIALS MISLED THEM ON SEVERAL OCCASIONS ONE EXAMPLE INVESTIGATORS SAY INVOLVES THE ISSUE OF TOXIC VAPORS ESCAPING FROM AUXILIARY STORAGE TANKS CALLED BREAKOUT TANKS AT THREE SMALL REFINERIES ALONG THE PIPELINE THE TANKS HAVE NO SYSTEM FOR CAPTURING OR DESTROYING THE VAPORS THAT RISE FROM STORED OIL BOTH SIDES SAY THAT THOUSANDS OF TONS OF TOXIC VAPORS POUR INTO THE ATMOSPHERE EACH YEAR THROUGH VENTS IN THE AUXILIARY TANKS WHEN COMMITTEE INVESTIGATORS WENT TO ALASKA AND ASKED ABOUT THE EMISSIONS THEY SAY THEY WERE TOLD BY ALYESKA OFFICIALS THAT EMISSIONS ESCAPED ONLY A FEW TIMES A YEAR BOTH SIDES NOW SAY THAT EMISSIONS POUR OUT OF THE AUXILIARY TANKS DOZENS OF DAYS A YEAR THE ENVIRONMENTAL PROTECTION AGENCY SAYS IT IS LOOKING INTO THE MATTER TO SEE WHETHER ALYESKA'S PERMITS OR FEDERAL CLEAN AIR LAWS ARE BEING VIOLATED IN AN INTERVIEW MR STOCKTON THE SUBCOMMITTEE INVESTIGATOR SAID THAT ON THE EMISSIONS QUESTIONS AND OTHER ISSUES ALYESKA'S ANSWERS HAVE BEEN A BUNCH OF BULL HE SAID THERE ARE SERIOUS QUESTIONS ABOUT PIPELINE SAFETY BEING RAISED AND FRANKLY ALYESKA'S RESPONSES HAVE BEEN GROSSLY INADEQUATE ROGER STAIGER ALYESKA'S WASHINGTON REPRESENTATIVE DENIED THAT THE COMPANY MISLED INVESTIGATORS REGARDING THE EMISSIONS QUESTION HE AND ROB SHOAF ALYESKA'S ASSISTANT GENERAL COUNSEL SAID THE COMPANY IS OPERATING IN ACCORDANCE WITH PERMITS AND THAT THE EMISSIONS AREN'T A HAZARD THEY SAID THE CONFUSION AMONG INVESTIGATORS AND ALYESKA OFFICIALS OVER THE EMISSIONS AND SOME OTHER ISSUES HAS RESULTED FROM SIMPLE MISUNDERSTANDINGS AND SOME IMPRECISE QUESTIONS THEY'VE ASKED SOME VERY NARROW QUESTIONS AND WE'VE GIVEN VERY PRECISE ANSWERS AND THERE HAVE BEEN SOME MISUNDERSTANDINGS AS A CONSEQUENCE MR STAIGER SAID BUT WE ARE TRYING TO RESPOND TO THE COMMITTEE'S CONCERNS AS ACCURATELY AS POSSIBLE 9306010007 930601 MARKETING & MEDIA P&G CUTTING NUMBER OF AD AGENCIES ASSIGNED TO VICKS LINE SPIC AND SPAN BY GABRIELLA STERN STAFF REPORTER OF THE WALL STREET JOURNAL PROCTER & GAMBLE CO IN A MOVE SIGNALING A GLOBAL APPROACH TO BRAND ADVERTISING SAID IT IS REDUCING TO THREE FROM FIVE THE NUMBER OF AD AGENCIES WHICH HANDLE ITS VICKS LINE OF RESPIRATORY CARE PRODUCTS THE CINCINNATIBASED CONSUMER PRODUCTS COMPANY IS ALSO SHRINKING TO ONE FROM TWO THE NUMBER OF AD AGENCIES ASSIGNED TO ITS SPIC AND SPAN HOUSEHOLD CLEANER A P&G SPOKESWOMAN DECLINED TO COMMENT ON WHETHER OTHER AD AGENCY CONSOLIDATIONS ARE LIKELY BUT ANALYSTS AND MARKETING CONSULTANTS SAY THEY BELIEVE P&G WILL PROBABLY REDUCE THE NUMBER OF AD AGENCIES HANDLING ITS OTHER PERSONALCARE PRODUCTS AROUND THE WORLD THEY SAY P&G WANTS TO UNIFY THE WAY ITS BRANDS ARE PITCHED THROUGHOUT THE WORLD MOVING AWAY FROM COUNTRYBYCOUNTRY OR REGIONAL PROMOTIONS IT WOULDN'T BE SURPRISING IF THIS WERE THE BEGINNING OF A MOVE TOWARD A GLOBAL STRATEGY SAID KEVIN PRICE SENIOR PARTNER WITH MARKETING CORP OF AMERICA A MARKETING CONSULTANT IN WESTPORT CONN MR PRICE NOTED THAT UNLIKE FOODS WHOSE APPEAL CAN VARY FROM COUNTRY TO COUNTRY THE TYPE OF PRODUCTS P&G MAKES COLD REMEDIES DETERGENTS DISPOSABLE DIAPERS AND THE LIKE COULD THRIVE UNDER A SINGLE GLOBAL IMAGE IF YOU HAVE A PRODUCT THAT DELIVERS A NEARLY IDENTICAL BENEFIT AROUND THE WORLD THEN WHY WOULD YOU WANT TO COMMUNICATE THAT BENEFIT DIFFERENTLY FROM PLACE TO PLACE MR PRICE SAID MR PRICE SAID HE BELIEVES OTHER CONSUMER PRODUCT COMPANIES WILL FOLLOW P&G'S LEAD BECAUSE IT'S MORE EFFICIENT AS FOR HOW THE AD AGENCIES WILL FARE HE SAID YOU'LL BE A WINNER IF YOU CAN ADAPT TO THE CHANGE YOU'LL LOSE IF YOU CAN'T P&G SAID VICKS WILL NOW BE HANDLED BY D'ARCY MASIUS BENTON & BOWLES INC IN THE US CANADA AND ASIAPACIFIC REGION WHILE LEO BURNETT INC WILL HAVE VICKS IN EUROPE LATIN AMERICA AND THE MIDDLE EASTAFRICA REGION PREVIOUSLY SAATCHI & SAATCHI ADVERTISING HANDLED VICKS VAPORUB AND VICKS FORMULA 44 COUGH SYRUP IN EUROPE ASIAPACIFIC AND AFRICA TATHAM EURO RSCG HAD THE ACCOUNT FOR VICKS THROAT DROPS IN THE US AND CHLORASEPTIC IN THE US AND CANADA MCCANNERICKSON WILL CONTINUE TO HANDLE VICKS PRODUCTS IN JAPAN D'ARCY MASIUS PREVIOUSLY HANDLED SINEX MEDINITE AND VICKS INHALERS IN EUROPE WHILE LEO BURNETT HAD VICKS THROAT DROPS IN CANADA ON THE SPIC AND SPAN FRONT SAATCHI & SAATCHI WHICH PREVIOUSLY HANDLED THE CLEANER IN THE US WILL ALSO HAVE THE ACCOUNT IN CANADA AND EUROPE PREVIOUSLY LEO BURNETT HAD SPIC AND SPAN IN CANADA WHILE D'ARCY MASIUS HANDLED THE PRODUCT IN EUROPE WHERE SPIC AND SPAN IS CALLED FLASH P&G ALSO SAID ITS BIACTOL AND TOPEXAN ACNE PRODUCTS WHICH HAD BEEN HANDLED BY LEO BURNETT IN EUROPE WILL NOW SHIFT TO EURO RSCG P&G WOULDN'T DISCUSS ITS GLOBAL ADVERTISING SPENDING ACCORDING TO LEADING NATIONAL ADVERTISERS WHICH TACKS AD SPENDING US ADVERTISING BILLINGS FOR VICKS WERE AN ESTIMATED 27 MILLION IN 1991 THE MOST RECENT YEAR AVAILABLE BILLINGS FOR SPIC AND SPAN IN THE US WERE 5 MILLION OTHER P&G BRANDS APPEAR RIPE FOR SIMILAR AD AGENCY CONSOLIDATION THE P&G SPOKESWOMAN SAID MOST BRANDS ARE HANDLED BY MULTIPLE AGENCIES AROUND THE WORLD CREST TOOTHPASTE FOR EXAMPLE IS ASSIGNED TO D'ARCY MASIUS IN EUROPE LEO BURNETT IN ASIAPACIFIC AND LATIN AMERICA AND SAATCHI IN PUERTO RICO SAATCHI GREY ADVERTISING INC AND WELLS RICH GREEN BDDP HANDLE OIL OF OLAY SKIN CREAM DEEPAK RAJ AN ANALYST WITH MERRILL LYNCH SAID GLOBAL ADVERTISING MAY HELP P&G MAKE INROADS IN PARTS OF THE WORLD WHERE ITS BRANDS ARE UNDERREPRESENTED THIS MAY BE A WAY OF PUSHING FORWARD ON MORE GLOBAL BRANDS MR RAJ SAID TRADITIONALLY THE COMPANY HAS BEEN VERY STRONG IN THE DEVELOPED WORLD AND LESS VISIBLE IN EMERGING NATIONS WHERE RIVALS SUCH AS COLGATEPALMOLIVE CO HAVE A STRONGER PRESENCE HE SAID THIS MIGHT MAKE P&G MORE EFFICIENT AND GIVE THEM A CONSISTENT BRAND IMAGE THROUGHOUT THE WORLD 9306010006 930601 NEW IMF MEASURE OF CHINA'S ECONOMY IS SAID TO BE OF QUESTIONABLE ACCURACY BY LAURENCE ZUCKERMAN STAFF REPORTER OF THE WALL STREET JOURNAL CHINA'S ECONOMIC OUTPUT INCREASED MORE THAN 3 1/2 TIMES IN ONE FELL SWOOP ON FRIDAY WHEN THE INTERNATIONAL MONETARY FUND OFFICIALLY RELEASED A DOCUMENT OUTLINING ITS DECISION TO ALTER THE WAY IT MEASURES NATIONAL ECONOMIES THE NEW MEASURE VAULTS CHINA'S ECONOMY TO THIRD PLACE AFTER THE US AND JAPAN IMF OFFICIALS SAY THE NEW APPROACH IS A VAST IMPROVEMENT OVER THE PREVIOUS WAY OF MEASURING NATIONAL OUTPUT BECAUSE IT ELIMINATES A VARIETY OF DISTORTIONS BUT A LOOK AT THE FINE PRINT IN THE IMF'S LATEST WORLD ECONOMIC OUTLOOK REVEALS THAT THE NEW ESTIMATE FOR CHINA IS OF QUESTIONABLE ACCURACY AMONG OTHER THINGS THE ESTIMATE IS BASED ON DATA COLLECTED MORE THAN A DECADE AGO AT THE EARLY STAGES OF DENG XIAOPING'S ECONOMIC REFORMS I WOULD HAVE TO DESCRIBE THEIR NUMBER AS VERY HIGHLY JUDGMENTAL SAYS ROBERT SUMMERS AN ECONOMICS PROFESSOR AT THE UNIVERSITY OF PENNYSLVANIA HE'S AN AUTHORITY ON MEASURING ECONOMIES USING THE NEW METHOD BUT BACKS HIS OWN COMPETING ESTIMATE BEIJING ITSELF REJECTS THE NEW IMF CALCULATIONS THE FOREIGN MINISTRY ISSUED A STATEMENT LAST WEEK SAYING THAT CHINA NEEDS SEVERAL DECADES OF EFFORT BEFORE ITS ECONOMY APPROACHES DEVELOPEDNATION LEVELS CHINESE OFFICIALS COMPLAIN THAT IT OVERSTATES THE SIZE OF THEIR ECONOMY INSISTING THAT THE NEW FIGURE DOESN'T DIMINISH THEIR NEED FOR SOFT LOANS AND OTHER INTERNATIONAL ASSISTANCE WHICH THE WORLD BANK RESERVES FOR COUNTRIES WITH PERCAPITA GROSS DOMESTIC PRODUCTS UNDER 765 THE IMF LIKE THE WORLD BANK TRADITIONALLY HAS MEASURED ECONOMIES BY SIMPLY ADDING UP A COUNTRY'S TOTAL OUTPUT OF GOODS AND SERVICES IN LOCAL CURRENCY AND CONVERTING IT INTO US DOLLARS BUT THAT CAN LEAD TO SERIOUS DISTORTIONS IF GOVERNMENTS DON'T LET CURRENCIES FLOAT FREELY OR IF THE DOLLAR VALUES OF FLOATING CURRENCIES RISE AND FALL SHARPLY THUS BECAUSE THE YUAN DECLINED STEEPLY AGAINST THE DOLLAR IN THE 1980S CHINA'S SHARE OF WORLD OUTPUT IN DOLLAR TERMS AS WELL AS ITS PERCAPITA GDP SHRANK DESPITE AVERAGE GROWTH OF 9 PER YEAR GDP MEASURES A NATION'S TOTAL OUTPUT OF GOODS AND SERVICES LESS FOREIGN INCOME THE IMF NOW AIMS TO CORRECT THIS BIAS BY DOING THE PROCESS IN REVERSE INSTEAD OF STARTING WITH THE ECONOMY'S TOTAL SIZE THE IMF FIRST CALCULATES ITS PERCAPITA GDP AND THEN MULTIPLIES BY THE POPULATION TO OBTAIN THE PERCAPITA GDP WITHOUT FIRST HAVING THE GDP THE FUND MEASURES EACH ECONOMY BASED ON WHAT PEOPLE CONSUME AND TO AVOID FLUCTUATING EXCHANGE RATES IT ADJUSTS PRICES USING PURCHASINGPOWER PARITIES OR PPPS THIS TECHNIQUE TAKES A REPRESENTATIVE BASKET OF GOODS AND SERVICES AND REVALUES EACH ITEM AT A UNIFORM PRICE IN US DOLLARS A COTTON TSHIRT BOUGHT IN INDIA IS THUS GIVEN THE SAME DOLLAR VALUE AS ONE BOUGHT IN PARIS THIS ELIMINATES THE OFTEN WIDE PRICE DISCREPANCIES FROM COUNTRY TO COUNTRY FOR EXAMPLE A HAIRCUT OR A DENTAL CHECKUP IN BEIJING WHERE LABOR IS CHEAP COSTS MUCH LESS THAN IN NEW YORK MANY ECONOMISTS BELIEVE THIS METHOD RESULTS IN A FAIRER MEASURE OF A COUNTRY'S RELATIVE MATERIAL WEALTH BUT PPPBASED MEASURES REQUIRE A LOT OF LEGWORK AND STATISTICAL LEGERDEMAIN PRICE DATA MUST BE COLLECTED FOR HUNDREDS OF ITEMS IN EACH COUNTRY AND THEN WEIGHTED ACCORDING TO MYRIAD DIFFERENCES IN CULTURE AND QUALITY FOR EXAMPLE JAPAN DOESN'T CONSUME THE SAME ITEMS IN THE SAME QUANTITIES AS FRANCE DOES AND THE SERVICES OFFERED BY DENTISTS IN BEIJING AND PARIS AREN'T EQUIVALENT IN 1968 THE UNITED NATIONS LAUNCHED THE INTERNATIONAL COMPARISON PROGRAM TO COLLECT PPP DATA MORE THAN 60 COUNTRIES HAVE PARTICIPATED IN VARIOUS SURVEYS EVERY THREE TO FIVE YEARS SINCE 1970 CHINA ISN'T ONE OF THEM BUT EVEN WITHOUT SURVEY DATA THE IMF COULDN'T LEAVE OUT THE WORLD'S MOST POPULOUS COUNTRY ONE CHOICE WAS TO ADOPT THE CHINA ESTIMATE ARRIVED AT BY PROF SUMMERS AND ALAN HESTON ALSO AN ECONOMICS PROFESSOR AT THE UNIVERSITY OF PENNSYLVANIA THE TWO HAVE BEEN INTERPRETING DATA FROM THE UN INTERNATIONAL COMPARISON PROGRAM FOR TWO DECADES AND ARE AMONG THE TOP AUTHORITIES ON THE SUBJECT WORKING WITH OTHERS PROFS SUMMERS AND HESTON CAME UP WITH A GDP ESTIMATE FOR CHINA OF 2598 PER CAPITA OR 285 TRILLION AT 1990 PRICES BUT THAT IS A SEVENFOLD INCREASE IN CHINA'S TOTAL OUTPUT FROM THE EXCHANGERATEBASED MEASURE AND IT MAKES CHINA THE WORLD'S SECONDLARGEST ECONOMY A RESULT THAT MADE THE IMF UNCOMFORTABLE AN IMF OFFICIAL SAYS THE DATA FOR THE SUMMERSHESTON ESTIMATE WERE OUT OF DATE BECAUSE THE INFORMATION WAS COLLECTED IN 1975 BUT PROFS SUMMERS AND HESTON SAY THEIR DATA WERE FRESHENED BY 1986 WORLD BANK FIGURES A SECOND ALTERNATIVE WOULD HAVE BEEN FOR THE IMF TO USE THE ESTIMATE COMPILED BY THE WORLD BANK USING THE PPPBASED RESULTS FOR COUNTRIES AT A SIMILAR STAGE OF DEVELOPMENT ALONG WITH SUCH DEMOGRAPHIC STATISTICS AS LITERACY CALORIC INTAKE AND LONGEVITY THE BANK'S LATEST ESTIMATE PLACES CHINA'S PER CAPITA GDP AT 1950 AT 1990 PRICES VALUING THE TOTAL ECONOMY AT 215 TRILLION OR MORE THAN FIVE TIMES ITS EXCHANGERATEBASED MEASURE BUT THIS NUMBER TOO PUTS CHINA AT NO 2 AHEAD OF JAPAN AND WAS ALSO CONSIDERED TOO HIGH BY THE IMF EXPERTS FINALLY THE FUND SETTLED ON AN ESTIMATE BASED ON AN OBSCURE STUDY PUBLISHED BY THE CENTER FOR INTERNATIONAL RESEARCH OF THE US BUREAU OF THE CENSUS USING 1981 CHINESE PRICES DERIVED FROM PUBLISHED SOURCES JEFFREY TAYLOR THE STUDY'S AUTHOR CAME UP WITH AN ESTIMATE THAT TRANSLATES INTO ABOUT 1300 PER CAPITA IN 1990 PRICES A TOTAL OF 147 TRILLION OR 3 1/2 TIMES THE OLD FIGURE THERE WAS CONSENSUS THAT THIS WAS A MORE CREDIBLE FIGURE THE IMF OFFICIAL SAYS BUT NONE OF THE PRINCIPALS ARE ALL THAT PLEASED WITH THE RESULTS I SHOULD BE HONEST IT'S NOT WITHOUT FLAWS SAYS MR TAYLOR WHO IS NOW AN IMF STATISTICIAN IT AIN'T SCIENCE WITH A CAPITAL S ADDS PROF SUMMERS OF HIS AND THE OTHER ESTIMATES I AM NOT EVEN VERY COMFORTABLE WITH THE CONCLUSION THAT CHINA IS NOW THE THIRDLARGEST ECONOMY BECAUSE IT APPLIES A DEGREE OF PRECISION THAT'S JUST NOT THERE HE SAYS 9306010005 930601 CLINTON'S HIRING OF GERGEN SUGGESTS APPEAL TO MODERATES BUT DOUBTS LINGER BY MICHAEL K FRISBY AND JEFFREY H BIRNBAUM STAFF REPORTERS OF THE WALL STREET JOURNAL WASHINGTON PRESIDENT CLINTON HEARTENED MODERATES AND CONSERVATIVES BY HIRING GOP ADVISER DAVID GERGEN BUT THE PRESIDENT MAY BE PLANNING FURTHER STAFF SHAKEUPS THAT WOULD RAISE DOUBTS ABOUT WHETHER THE LATEST MOVE SIGNALS A GENUINE SHIFT IN HIS POLICIES EVEN AS HE BRINGS IN MR GERGEN THE PRESIDENT STILL IS CONSIDERING HIRING HAROLD ICKES A LIBERAL DEMOCRAT FROM NEW YORK TO BE A SENIOR ADVISER THE RESULT IS THAT MR CLINTON'S ATTEMPT TO BE PORTRAYED AS A MORE CENTRIST LEADER IS BEING CLOUDED AND ONCE AGAIN HE HAS SHOWN THAT IT IS DIFFICULT TO SET A COMPASS ON HIS POLITICAL SOUL ON SATURDAY THE PRESIDENT SHOCKED THE LIBERAL ELITE OF HIS PARTY BY NAMING MR GERGEN AS COUNSELOR AND DIRECTOR OF WHITE HOUSE COMMUNICATIONS MR CLINTON SAID HE CHOSE MR GERGEN IN AN ATTEMPT TO SHOW THAT HE IS STILL THE MODERATE NEW DEMOCRAT THAT HE PORTRAYED HIMSELF TO BE DURING THE PRESIDENTIAL CAMPAIGN AN IMAGE THAT GOT LOST IN THE FIRST FOUR HEAVILY PARTISAN MONTHS OF HIS PRESIDENCY MR GERGEN SUCCEEDS GEORGE STEPHANOPOULOS WHO BECOMES A POLICY ADVISER AS COMMUNICATIONS DIRECTOR MR GERGEN 51 YEARS OLD IS A WHITE HOUSE VETERAN WHO SERVED IN THE NIXON FORD AND REAGAN ADMINISTRATIONS AND HAS RECENTLY BEEN A POLITICAL COMMENTATOR AND AN EDITOR OF US NEWS & WORLD REPORT PAUL BEGALA A CLINTON POLITICAL ADVISER ASSERTED THE APPOINTMENT WOULD SEND A MESSAGE TO THE AMERICAN PEOPLE THAT BILL CLINTON IS GOING TO SHAKE UP WASHINGTON AND THAT THE PRESIDENT IS SHOWING HE IS GOING TO BE DIFFERENT FROM THE WAYS OF OLD POLITICS MR GERGEN'S HIRING WAS MEANT TO ASSURE REPUBLICANS AND CONSERVATIVE DEMOCRATS THAT THE WHITE HOUSE HADN'T ABANDONED THEM THE PRESIDENT'S DEFICITREDUCTION PACKAGE DIDN'T WIN A SINGLE REPUBLICAN VOTE IN THE HOUSE LAST WEEK AND MODERATE DEMOCRATS WERE AMONG THE LAST HOLDOUTS WHITE HOUSE AIDES SAID MR GERGEN WILL HAVE AN IMPACT NOT ONLY ON SHAPING COMMUNICATIONS STRATEGY BUT ALSO IN MOVING POLICIES TO THE RIGHT FOR INSTANCE MR GERGEN IS SAID TO FAVOR DELAYING THE PRESIDENT'S HEALTHCARE OVERHAUL PROPOSAL UNTIL THE AUTUMN EMPHASIZING MORE SPENDING CUTS AND LESS TAXES AND CUTTING THE FEDERAL WORK FORCE SOME LIBERAL DEMOCRATS WERE CHAGRINED THAT MR CLINTON HAD BYPASSED MEMBERS OF HIS OWN PARTY TO REACH OUT TO MR GERGEN BUT DEE DEE MYERS THE WHITE HOUSE PRESS SECRETARY SAID MR GERGEN WILL BRING USEFUL EXPERIENCE AND WASHINGTON SAVVY TO THE ADMINISTRATION HE IS WELLRESPECTED ON THE HILL AND BY THE PRESS SHE SAID I THINK HE WILL BE A TREMENDOUS ASSET MS MYERS SAID THAT MR GERGEN WILL PLAY A ROLE IN SHAPING POLICY BUILDING POLITICAL SUPPORT AND COMMUNICATING THE PRESIDENT'S MESSAGE TO THE PUBLIC MORE IMPORTANTLY MR CLINTON'S MODERATE FRIENDS IN CONGRESS AND ELSEWHERE SAID THE MOVE WILL IMPROVE THE PRESIDENT'S STANDING WITH THEM OVER THE PAST WEEK OR SO MR GERGEN HAS REVIEWED THE SPEECHES THAT MR CLINTON DELIVERED AS CHAIRMAN OF THE DEMOCRATIC LEADERSHIP COUNCIL A CENTRIST GROUP THAT TOUTS MODERATE INITIATIVES SUCH AS WELFARE OVERHAUL NATIONAL SERVICE AND SCHOOL CHOICE AL FROM THE GROUP'S PRESIDENT SAID MR GERGEN WILL HELP MR CLINTON CHANGE THE WAY HE BUILDS POLITICAL SUPPORT FOR HIS PROGRAMS INSTEAD OF STARTING WITH A LIBERAL BASE IN THE DEMOCRATIC PARTY AS HE HAS DONE SO FAR AS PRESIDENT MR CLINTON WILL BEGIN AT THE POLITICAL CENTER AND REACH OUT TO THE LEFT AND THE RIGHT BRINGING IN BOTH DEMOCRATS AND REPUBLICANS MR FROM SAID IT'S VERY VERY IMPORTANT FOR THE PRESIDENT TO MOVE TO BEING A MAJORITY PRESIDENT AND HE HAS TO DO IT BY MOVING FROM THE CENTER OUT MR FROM EXPLAINED THE MESSAGE THAT THE POLITICAL CENTER AND RIGHT WERE DISAFFECTED WAS HAMMERED HOME TO MR CLINTON AS HE TROLLED FOR VOTES FOR HIS TROUBLED ECONOMIC PLAN LAST WEEK MODERATE LAWMAKERS SOME OF WHOM WERE LONGTIME SUPPORTERS OF MR CLINTON WARNED HIM THAT HE RAN FOR PRESIDENT AS A NEW DEMOCRAT BUT WAS GOVERNING AS AN OLD DEMOCRAT MR FROM SAID THAT ADMONITION CONVINCED THE PRESIDENT HE SHOULD BRING IN MR GERGEN AND NOT BE TOO CONCERNED IF LIBERALS GET UPSET IF CLINTON IS GOING TO HAVE TROUBLE WITH DEMOCRATS HE SAID IT IS BETTER THAT HE HAVE TROUBLE FROM THE LEFT STILL THE QUESTION TO BE ANSWERED IS WHETHER MR CLINTON WILL REALLY MOVE TOWARD THE RIGHT THE NEXT PHASE OF THE WHITE HOUSE SHAKEUP IS LIKELY TO ELEVATE A LIBERAL DEPUTY CHIEF OF STAFF MARK GEARAN WHO WAS AN AIDE TO FORMER MASSACHUSETTS GOV MICHAEL DUKAKIS IN AN EFFORT TO ORGANIZE THE STAFF MORE TIGHTLY MR GEARAN IS SLATED TO OVERSEE THE WHITE HOUSE'S POLITICAL OFFICE AS WELL AS THE OFFICES OF THE CABINET SECRETARY THE PUBLIC LIAISON AND INTERGOVERNMENTAL AFFAIRS THE SUPERVISORS OF EACH OF THOSE OFFICES ARE EXPECTED TO STAY IN PLACE EXCEPT REGINA MONTOYA THE DIRECTOR OF INTERGOVERNMENTAL AFFAIRS MS MONTOYA HAS BEEN WIDELY CRITICIZED FOR INEFFECTIVENESS WHITE HOUSE AIDES SAID IT IS POSSIBLE THAT TEXAS GOV ANN RICHARDS WHO IS A FRIEND OF MS MONTOYA COULD APPOINT THE NATIVE TEXAN TO BE THE STATE'S TREASURER IF AS EXPECTED GOP TREASURER KAY HUTCHISON DEFEATS APPOINTED SEN BOB KRUEGER IN A SPECIAL ELECTION THIS WEEKEND IN ADDITION MR ICKES THE NEW YORK DEMOCRAT WOULD BE IN LINE TO GET A SENIOR WHITE HOUSE POST IF AN INVESTIGATION FINDS THAT THE NEW YORK ATTORNEY DIDN'T ACT IMPROPERLY WHILE REPRESENTING A UNION WITH REPUTED TIES TO ORGANIZED CRIME MR ICKES HAS DENIED ANY WRONGDOING AND THE INVESTIGATION IS EXPECTED TO BE COMPLETED SOON MR ICKES'S IDEOLOGY HE WORKED FOR THE REV JESSE JACKSON AT THE 1988 DEMOCRATIC CONVENTION CONTRASTS SHARPLY WITH MR GERGEN'S THE ADDITION OF MR GERGEN WILL LEAD TO A LIVELY POLICY DEBATE INSIDE THE WHITE HOUSE WHERE LIBERALS SUCH AS MR STEPHANOPOULOS ALEXIS HERMAN THE PUBLIC LIAISON DIRECTOR AND GENE SPERLING AN ECONOMIC ADVISER WILL BE PITTED AGAINST MR GERGEN AND MODERATE DEMOCRATS SUCH AS POLICY ADVISERS BRUCE REED AND WILLIAM GALSTON BUT EVEN LIBERAL AIDES CONCEDE THAT MR GERGEN'S PRESENCE WOULD ALLOW THE ADMINISTRATION TO HEAR INTERNALLY WHAT THE REPUBLICAN ATTACKS ARE LIKELY TO BE IN ADDITION SOME DEMOCRATS WOULD WELCOME HAVING BOTH MESSRS GERGEN AND ICKES INSIDE THE WHITE HOUSE FOR COMPLETELY NONIDEOLOGICAL REASONS WISCONSIN REP DAVID OBEY FOR INSTANCE SAID BOTH GERGEN AND ICKES WOULD BRING HARDSHELLED REALITY TO THE PLACE THE COMMON THREAD THAT UNITES THE TWO IS THAT BOTH ARE ABSOLUTE PROS THEY ARE BIG LEAGUERS THE TWO OF THEM ARE JUST VERY DECENT PEOPLE WHO BASICALLY HAVE A HARD CORE OF NONONSENSE SOLVETHEPROBLEM APPROACH TO THEIR WORK 9306010004 930601 ECONOMY MANPOWER SURVEY SUGGESTS SLOWDOWN IN 3RDQUARTER HIRING MILWAUKEE A QUARTERLY JOBOUTLOOK SURVEY SIGNALS A THIRDQUARTER SLOWDOWN IN HIRING FROM THE STRONG GAINS PROJECTED FOR THE PREVIOUS QUARTER THE SURVEY BY MANPOWER INC SUGGESTS THAT IN THE QUARTER BEGINNING TODAY ON A SEASONALLY ADJUSTED BASIS 12 MORE EMPLOYERS WILL BE ADDING TO THEIR WORK FORCE THAN REDUCING STAFF THAT NETHIRING INCREASE COMPARES WITH 16 IN THE SECOND QUARTER AND MATCHES THE 12 OF THE YEAREARLIER QUARTER THE SURVEY CANVASSES ABOUT 15000 US FIRMS THE LATEST SURVEY INDICATES THAT WHILE HIRING WILL CONTINUE LITTLE STRENGTH IS PROJECTED WE SENSE A PREVAILING UNCERTAINTY AMONG BUSINESS ENTERPRISES THAT KEEPS THE LID ON TRADITIONAL POSTRECESSION HIRING PATTERNS SAID MITCHELL FROMSTEIN PRESIDENT OF EMPLOYMENTSERVICES CONCERN MANPOWER OFFICIALS SAID THE BROAD OUTLOOK FOR EMPLOYMENT LACKS THE ROBUSTNESS SEEN IN THE 198384 RECOVERY PERIOD THE SOUTH AND MIDWEST SHOULD CONTINUE AS THE MOST ACTIVE REGIONS FOR HIRING WITH NETHIRING INCREASES OF 15 AND 13 RESPECTIVELY THE SURVEY SUGGESTS IN CONTRAST ONLY 4 MORE WESTERN EMPLOYERS ANTICIPATE ADDING TO THEIR WORK FORCE THAN THE PERCENTAGE EXPECTING TO REDUCE STAFF IN THE EAST A NETHIRING GAIN OF 8 IS EXPECTED AMONG INDUSTRIES THE STRONGEST THIRDQUARTER EMPLOYMENT GAINS ARE EXPECTED IN THE WHOLESALE AND RETAIL TRADE SECTOR AND IN THE SERVICE SECTOR AFTER ADJUSTING FOR SEASONAL FACTORS THESE INDUSTRIES FORESEE NETHIRING INCREASES OF 14 MIRRORING THE NATIONAL NETHIRING GAIN OF 12 ARE THE CONSTRUCTION AND MANUFACTURING SECTORS THE WEAKEST INDUSTRIES ARE MINING WHICH ANTICIPATES NO CHANGE IN HIRING AND THE TRANSPORTATION/PUBLIC UTILITIES AND PUBLIC ADMINISTRATION SECTORS WHICH PROJECT 3 NETHIRING GAINS 9306010003 930601 ECONOMY TRACKING THE ECONOMY BY ALAN YONAN JR MANUFACTURERS APPEAR RELUCTANT TO PROCEED WITH ANY EXPANSION PLANS UNTIL THEY SEE WHAT CONGRESS DOES WITH PRESIDENT CLINTON'S PROPOSALS ON FISCAL POLICY AND TAXES MANUFACTURING SHED 65000 JOBS IN APRIL AND PAYROLLS IN THE SECTOR PROBABLY REMAINED UNCHANGED IN MAY SAID DAVID JONES CHIEF ECONOMIST AT AUBREY G LANSTON & CO MR JONES PREDICTED THIS WEEK'S GOVERNMENT REPORT ON LABOR CONDITIONS WILL SHOW A NET GAIN OF 200000 PAYROLL JOBS BUT MOST OF THE ADVANCES WILL BE IN THE SERVICE AND CONSTRUCTION INDUSTRIES MANUFACTURING JOBS WILL BE LITTLE CHANGED HE SAID BUSINESSES HAVE HELD OFF ANY HIRING DECISIONS UNTIL THEY GET A CLEARER PICTURE OF WHAT'S GOING TO BE IN THE TAX BILL ALSO WEIGHING ON MANUFACTURING IS AN UNPLANNED BUILDUP IN INVENTORIES WHICH WILL SUPPRESS PRODUCTION UNTIL THE STOCKS ARE WORKED OFF MR JONES SAID WEAKNESS IN MANUFACTURING ALSO WILL BE REFLECTED IN A PRIVATE SURVEY OF PURCHASING EXECUTIVES TO BE RELEASED THIS WEEK HE SAID THE NATIONAL ASSOCIATION OF PURCHASING MANAGEMENT INDEX PROBABLY WILL REMAIN AROUND THE 50 MARK WHICH ESSENTIALLY SAYS NO GROWTH IN MANUFACTURING MR JONES SAID 9306010002 930601 MARKETING & MEDIA ADVERTISING FROM HOOPS TO NUTS BASKETBALL'S STARS SCORE HIGH IN ENDORSEMENTS BY KEVIN GOLDMAN MADISON AVENUE'S DREAM SCENARIO BASKETBALL STAR MICHAEL JORDAN WAKES UP SLIPS ON HIS HANES UNDERWEAR STEPS INTO HIS NIKE SNEAKERS SIPS A GLASS OF GATORADE SLURPS A BOWL OF WHEATIES STEERS HIS CHEVROLET BLAZER TO STOP AT MCDONALD'S FOR A SNACK TO THE ADVERTISING WORLD MR JORDAN OF THE CHICAGO BULLS IS THE MVE MOST VALUABLE ENDORSER APPEARING IN COMMERCIALS FOR ALL THE AFOREMENTIONED PRODUCTS WITH HIS LONGTERM ENDORSEMENT CONTRACTS AND THE ADORATION OF FANS EXPERTS SAY MR JORDAN HAS LITTLE TO FEAR FROM LAST WEEK'S HEADLINES ACCUSING HIM OF MAKING AN APPEARANCE AT AN ATLANTIC CITY CASINO AS LATE AS 230 AM THE MORNING BEFORE A PLAYOFF GAME WITH THE NEW YORK KNICKS HE CLAIMED HE LEFT THE CASINO HOURS EARLIER AND WAS IN BED BY 1 AM INDEED BASKETBALL PLAYERS GENERALLY APPEAR TO HAVE SOLIDIFIED THEIR PLACE AMONG FOOTBALL STARS AND TENNIS PROS AS MADISON AVENUE'S FAVORITE SPORTS ENDORSERS IF MR JORDAN IS FULLUP IN ENDORSEMENTS THERE ARE OTHER BASKETBALL STARS ON THE BENCH WHO COULD END UP SHILLING FOR EVERYTHING FROM AUTOMOBILES AND MEN'S GROOMING PRODUCTS TO FASTFOOD RESTAURANT CHAINS AGENTS SAY LOCAL ADS COULD PAY AS MUCH AS 30000 A SHOT AND NATIONAL COMMERCIALS COULD EARN A PLAYER AN EXTRA 100000 FOR EACH MINIMUM UNLIKE BASEBALL FOR EXAMPLE WHERE THE PUBLIC HAS HAD ITS FILL OF NEWS ABOUT PLAYERS' SALARIES AND FIGHTS OVER THE SPORT'S GOVERNANCE EXPERTS SAY THE BASKETBALL ESTABLISHMENT GETS MUCH OF THE CREDIT FOR THE FAVORABLE AD ATMOSPHERE BASKETBALL HAS WORKED HARD ON SHORING UP ITS IMAGE AND HAS AN EXCELLENT MARKETING CAMPAIGN SAYS NOVA LANKTREE PRESIDENT OF LANKTREE PASSPORT CELEBRITY NETWORK BASED IN NORTHBROOK ILL THE PLAYERS ARE ALSO ASSOCIATED WITH TEAMS MUCH LONGER THAN BASEBALL PLAYERS SO THAT BUILDS LOCAL LOYALTY THE SPORT ITSELF IS TELEVISIONFRIENDLY MEANING THERE IS NONSTOP ACTION WHICH ENGAGES THE VIEWER BASKETBALL'S NO 1 BAD BOY CHARLES BARKLEY OF THE SUNS STANDS A GOOD CHANCE TO SOAR WHETHER OR NOT HIS TEAM EMERGES VICTORIOUS HE ALREADY HAWKS NIKE AND COCACOLA HE'S GREAT FOR THOSE WILLING TO TAKE A CHANCE SAYS MS LANKTREE THE ADVERTISER WHO GOES FOR CREATIVE IMPACT WOULD FIND A LOT IN HIM AND HE'S GOOD BECAUSE HE ISN'T OVEREXPOSED INDEED IN ITS PERIODIC ADVERTISERS' PROFESSIONAL SCOUTING REPORT WHICH IS SENT TO CLIENTS AND PUBLICATIONS AD AGENCY FOOTE CONE & BELDING'S SAN FRANCISCO OFFICE TAPPED MR BARKLEY AS A SLAM DUNK THERE'S ALWAYS SIR CHARLES GROOMING PRODUCTS FOR BALD MEN MR BARKLEY'S HEAD IS HAIRLESS BUT MR BARKLEY IS SAID TO BE HOLDING OUT FOR ENDORSEMENT DEALS LASTING TWO TO THREE YEARS EACH WITH BLUECHIP ADVERTISERS SAYS DAVID BURNS PRESIDENT OF CHICAGOBASED BURNS SPORTS CELEBRITY SERVICE WHICH REPRESENTS ATHLETES ANOTHER PLAYER SHOOTING FOR A WINDFALL FROM ADVERTISING COULD BE MR JORDAN'S TEAMMATE FROM THE BULLS SCOTTIE PIPPEN WELLKNOWN FACE PROVEN COMMERCIAL ABILITY SAYS BOB DORFMAN FOOTE CONE'S SENIOR COPYWRITER IN HIS REPORT REPLETE WITH WISECRACK REMARKS MR PIPPEN'S PAST ONCOURT CHAMPIONSHIP PLAY AND A PREVIOUS OLYMPIC GOLD MEDAL SHOULD HELP HIM SNARE FUTURE COMMERCIAL CONTRACTS TRY HIM IN A SPOT FOR A GILLETTE RAZOR THAT PROMISES A SMOOTH SHAVE WITH NO CUTS OR KNICKS SAYS MR DORFMAN AS FOR THE KNICKS INDUSTRY EXPERTS WONDER WHY PATRICK EWING ISN'T DOING AS WELL ON MADISON AVENUE AS HE IS ON THE COURT IT'S STRANGE WRITES MR DORFMAN AFTER ALL MR EWING HAS A WELL KNOWN FACE PROVEN COMMERCIAL TALENT BUT HE'S NOT ROLLING IN RESIDUALS MAYBE IT'S THAT INTIMIDATING DEATH STARE OF HIS MS LANKTREE AGREES THAT AS SHE PUTS IT THE MONSTROUS LOOK HE GETS WHEN HE PLAYS COULD BE A FACTOR BUT WHEN HE SMILES SHE CONTINUES THERE IS INSTANT COSMETIC APPEAL THE COACHES SPECIFICALLY FOR THE BULLS AND KNICKS ALSO COULD BE MAJOR PLAYERS AS ENDORSERS EXPERTS SAY BUT PHIL JACKSON OF THE BULLS DOESN'T SEEM INTERESTED IN THE LIMELIGHT SAYS MS LANKTREE HE DOES REGIONAL CAR COMMERCIALS BUT HASN'T TRIED TO CULTIVATE A NATIONAL COMMERCIAL PERSONA MR BURNS CALLS HIM AN INTELLIGENT AGING HIPPIE AND FOOTE CONE SUGGESTS THE HIGHBROW MR JACKSON WOULD BE A SUPERB ENDORSER FOR SUCH BLUECHIP PRODUCTS AS APPLE COMPUTERS FORTUNE MAGAZINE OR FIDELITY INVESTMENTS PAT RILEY THE ALWAYS WELLGROOMED KNICKS COACH HAS DONE ROLAIDS AND REVLON IN THE PAST HE IS PRIME FOR MEN'S GROOMING PRODUCTS SAYS MS LANKTREE ENDORSING IS NOT AS SIMPLE AS IT USED TO BE SAYS MR BURNS ALTHOUGH THE REASON IS IN NO WAY REFLECTED BY ANYONE MENTIONED ABOVE MR BURNS SAYS THAT PROFESSIONAL ATHLETES' ANTICS BE IT PROBLEMS WITH DRUGS OR ALCOHOL OR FISTICUFFS WITH ONE ANOTHER OR FANS HAVE MADE IT NECESSARY FOR SOME COMPANIES TO INSIST ON A SOCALLED MORALS CLAUSE IN ENDORSEMENT CONTRACTS IF THE ATHLETE MISBEHAVES THEY'RE OUT IT'S SAD COMMENTARY SAYS MR BURNS SAD BUT NECESSARY RESIGNATION AMMIRATI & PURIS NEW YORK THE AGENCY THAT PUT ACTOR JOHN CLEESE INTO EYECATCHING COMMERCIALS FOR SCHWEPPES MIXERS RESIGNED FROM THE ESTIMATED 3 MILLION ACCOUNT CITING REDUCED ADVERTISING EXPENDITURES AND LIMITED POTENTIAL FOR GROWTH THE STAMFORD CONN COMPANY A UNIT OF CADBURY PLC IS LOOKING FOR A NEW AGENCY SAID A SPOKESWOMAN AND EXPECTS TO FIND ONE WITHIN 60 DAYS FOOTE CONE & BELDING COMMUNICATIONS CHICAGO HANDLES CADBURY'S CANADA DRY AND SUNKIST BRANDS WPP GROUP'S J WALTER THOMPSON HANDLES THE MOTT'S BRAND PULSAR WPP GROUP'S MARTIN AGENCY RICHMOND VA WON THE ESTIMATED 5 MILLION PULSAR/JAZ PARIS WATCH ACCOUNT OF HATTORI SEIKO CO'S SEIKO CORP OF AMERICA IT WAS PREVIOUSLY HANDLED BY SAATCHI & SAATCHI'S AC&R ADVERTISING NEW YORK MARTIN BESTED THREE FINALISTS MULLEN ADVERTISING OF WENHAM MASS AND THE NEW YORK AGENCIES JORDAN MCGRATH CASE & TAYLOR AND SAATCHI & SAATCHI'S CLIFF FREEMAN & PARTNERS A NEW CAMPAIGN IS DUE LATE THIS YEAR 9306010001 930601 CORRECTIONS & AMPLIFICATIONS IL TULIPANO A MIAMI RESTAURANT WAS THE RECIPIENT OF A DISTINGUISHED RESTAURANTS OF NORTH AMERICA DIRONA AWARD THIS YEAR BASED ON INFORMATION PROVIDED BY A SPOKESMAN FOR THE GROUP AN ARTICLE WEDNESDAY INCORRECTLY STATED THAT THE RESTAURANT DIDN'T WIN AN AWARD ALSO A REQUEST FOR PROMOTIONAL FUNDING MENTIONED IN THE ARTICLE WAS MADE NOT BY THE RESTAURANT GROUP BUT BY A GROUP OF ITS MEMBER RESTAURANTS IN NEW YORK THE US SUPREME COURT HAS BEEN ASKED TO REVIEW A LOWERCOURT DECISION THAT ALLOWED STUDENTRUN PRAYERS AT HIGHSCHOOL GRADUATION CEREMONIES IN THE MAY 24 LEGAL BEAT COLUMN IT WAS INCORRECTLY STATED THAT THE HIGH COURT HAD AGREED TO REVIEW THE CASE ROHR INC HAS TOTAL DEBT OF 5692 MILLION IN AN ARTICLE FRIDAY THE AMOUNT WAS MISSTATED AS 108 BILLION WHICH REPRESENTS TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY GENERAL ELECTRIC CO RAISED ITS STAKE IN THE HUNGARIAN LIGHTBULB COMPANY TUNGSRAM TO 996 FROM 752 BY ACQUIRING THE 244 INTEREST HELD BY A HUNGARIAN CREDIT BANK AN ARTICLE FRIDAY MISSTATED GE'S NEW OWNERSHIP STAKE AS 966 U S WEST INC'S U S WEST FINANCIAL SERVICES INC UNIT HAD 1992 REVENUE OF 302 MILLION AND ASSETS OF 34 BILLION THE REVENUE FIGURE WAS MISSTATED AS ASSETS IN AN ARTICLE FRIDAY 9306010143 930504 COLLEGE STUDENTS ARE A POOR INVESTMENT BY JACKSON TOBY DURING A SPEECH ON MARCH 1 AT THE RUTGERS ATHLETIC CENTER TO AN ENTHUSIASTIC NEW JERSEY AUDIENCE INCLUDING 9000 STUDENTS PRESIDENT CLINTON RETURNED TO HIS CAMPAIGN THEME OF INVESTMENT IN EDUCATION IN RETURN FOR TUITION LOANS TO MAKE COLLEGE ATTENDANCE MORE AFFORDABLE WE'LL ASK YOU TO HELP CONTROL POLLUTION AND RECYCLE WASTE TO PAINT DARKENED BUILDINGS AND CLEAN UP NEIGHBORHOODS TO WORK WITH SENIOR CITIZENS AND COMBAT HOMELESSNESS AND HELP CHILDREN IN TROUBLE THE STUDENTS CHEERED STUDENTS ALSO CHEERED FRIDAY WHEN HE OFFERED A MORE CONCRETE VERSION OF A NATIONAL SERVICE PLAN AT THE UNIVERSITY OF NEW ORLEANS DURING THE 1992 CAMPAIGN MR CLINTON INSISTED THAT LOANS WOULD ENABLE COLLEGE STUDENTS TO ACQUIRE KNOWLEDGE THAT WILL HELP MAKE THE US MORE PRODUCTIVE IN THE 21ST CENTURY THE NATIONAL SERVICE PLAN NOW CALLS FOR 25000 COMMUNITY SERVICE JOBS IN 1994 RISING TO 150000 IN 1997 COMPARED WITH THE 89 MILLION STUDENTS ENROLLED IN 199192 IN FOURYEAR COLLEGES AND UNIVERSITIES IN THE US AND THE 52 MILLION STUDENTS IN TWOYEAR COLLEGES THIS IS A TINY PROGRAM BUT NEITHER A SYMBOLIC PROGRAM LIKE THE NATIONAL SERVICE PLAN NOR THE SEPARATE DIRECT LOAN PROGRAM WHICH WILL HELP MILLIONS OF STUDENTS ATTEND COLLEGE WILL NECESSARILY PAY OFF AS AN INVESTMENT BY MAKING THE US MORE PRODUCTIVE NEITHER PROGRAM ADDRESSES THE ISSUE OF PERSUADING STUDENTS TO GIVE THE ACQUISITION OF KNOWLEDGE THEIR HIGHEST PRIORITY FORTYONE YEARS OF TEACHING AT RUTGERS WHERE MOST ENTERING FRESHMEN HAVE ABOVEAVERAGE HIGH SCHOOL GRADES AND HIGH SCHOLASTIC APTITUDE TEST SCORES CONVINCE ME THAT FOR MANY STUDENTS CALLING WHAT THEY ARE ACCOMPLISHING EDUCATIONAL INVESTMENT EXAGGERATES THE RESULTS OF THE MODEST EFFORT THEY PUT INTO LEARNING SEVERAL YEARS AGO DURING THE FINAL EXAM IN INTRODUCTORY SOCIOLOGY A STUDENT ASKED ME TO TELL HIM WHAT ALLEGIANCE MEANT IN THE PHRASE ALLEGIANCE TO THE PEER GROUP MY POLICY WAS TO DEFINE WORDS THAT WERE NOT TECHNICAL SOCIOLOGICAL TERMS I THOUGHT A HINT WAS ALL HE NEEDED DIDN'T YOU PARTICIPATE IN THE PLEDGE OF ALLEGIANCE IN GRADE SCHOOL OR DON'T THEY DO THAT ANYMORE I ASKED SURE HE SAID EVERY DAY BUT WHAT DOES ALLEGIANCE' MEAN A YOUNG WOMAN WHO HAD BEEN IN MY CLASS DURING THE PREVIOUS SEMESTER CRIED AS SHE TALKED TO ME SHE HAD RECEIVED A C FOR THE COURSE AND HAD HOPED FOR A HIGHER GRADE IN AN EFFORT TO DISCOVER WHY SHE HAD DONE BELOW THE AVERAGE IN SOCIOLOGY AND EVEN WORSE IN HER OTHER COURSES I ASKED HER TO TELL ME EVERYTHING SHE DID DURING THE PAST WEEK FROM THE TIME SHE GOT UP EACH DAY UNTIL SHE WENT TO BED I DISCOVERED THAT SHE SPENT MORE TIME WATCHING TELEVISION THAN SHE SPENT ON HOMEWORK IT SEEMS TO ME THAT THE PROBLEM IS THAT YOU DON'T WORK HARD ENOUGH IF YOU WANT TO GET BETTER GRADES YOU OUGHT TO READ AND WRITE 10 HOURS A WEEK MORE THAN YOU DO NOW I SAID I OFFERED TO MEET WITH HER EVERY WEEK FOR AN HOUR TO DISCUSS WHAT SHE HAD READ AND TO READ WHAT SHE HAD WRITTEN SHE LOOKED SHOCKED SHE TOLD ME SHE WOULD THINK IT OVER I NEVER SAW HER AGAIN A SENIOR WHO HAD RECEIVED AN A IN MY CRIMINOLOGY CLASS CAME TO ASK FOR A LETTER OF RECOMMENDATION BECAUSE THAT CLASS HAD CONTAINED MORE THAN 200 STUDENTS I HAD EVALUATED THEM BY MEANS OF MULTIPLECHOICE TESTS AS A RESULT I KNEW VERY LITTLE ABOUT HIS WRITING SKILLS I ASKED HIM TO WRITE FOUR OR FIVE PAGES TELLING ME WHATEVER WAS IMPORTANT TO HIM HIS INTERESTS HIS EXPERIENCES HIS FAMILY SO MY LETTER WOULD REFLECT SOME KNOWLEDGE OF HIM A WEEK LATER HE WAS BACK WITH HIS ESSAY WHICH SHOWED HIM TO BE AN INTERESTING YOUNG MAN BUT I WAS SURPRISED AT THE NUMBER OF SPELLING MISTAKES FOR EXAMPLE HE CONSISTENTLY SPELLED DAYS OF THE WEEK WITH LOWERCASE LETTERS DON'T YOU KNOW THAT DAYS OF THE WEEK ARE ALWAYS SPELLED WITH CAPITAL LETTERS IN ENGLISH I ASKED HE INSISTED THAT I MUST BE MISTAKEN HE HAD BEEN SPELLING DAYS WITH SMALL LETTERS ALL THROUGH SCHOOL AND COLLEGE WHY DON'T COLLEGE STUDENTS LEARN MORE BECAUSE THEY ENROLL IN COLLEGE FOR A VARIETY OF REASONS BESIDES A PASSION FOR EDUCATION THEY WANT TO GET AWAY FROM PARENTS TO PARTY WITH FRIENDS TO PARTICIPATE IN VARSITY OR INTRAMURAL ATHLETICS TO WORK ON THE STUDENT NEWSPAPER TO INDULGE A SUBSTANCEABUSE PROBLEM TO EXPLORE SEXUAL RELATIONSHIPS TO STAGE PROTESTS AGAINST THE COLLEGE ADMINISTRATION OR JUST TO POSTPONE AN EVENTUAL FULLTIME JOB THEREFORE MANY STUDENTS SELECT COURSES BECAUSE THEY MEET AT CONVENIENT TIMES EVEN AFTER HAVING SELECTED CLASSES TO FIT THEIR PERSONAL SCHEDULES A SIZABLE MINORITY CUT A FIFTH OF THEIR CLASSES OR MORE AND MANY ARRIVE 10 OR 15 MINUTES LATE WHATEVER THE REASONS LEGITIMATE AND ILLEGITIMATE ACADEMIC WORK SUFFERS CONSEQUENTLY TAXPAYER INVESTMENT IN THEIR EDUCATIONS THROUGH STIPENDS GRANTS APPROPRIATIONS AND DEFAULTED LOANS NOW ABOUT 3 BILLION A YEAR HAS TINY INTELLECTUAL PAYOFFS COLLEGE PROFESSORS DESERVE SOME OF THE BLAME GRADE INFLATION MISLEADS STUDENTS ABOUT HOW MUCH THEY ARE LEARNING WE GIVE A'S AND B'S TO STUDENTS WHO DESERVE AT BEST C'S PRESIDENT CLINTON'S CHALLENGE TO YOUNG PEOPLE TO SERVE OUR COUNTRY IN LOWPAID COMMUNITYSERVICE JOBS ALTHOUGH A NEEDED ANTIDOTE FOR SELFINDULGENCE HAS AN UNINTENDED CONSEQUENCE BY OFFERING COLLEGE ATTENDANCE AS THE INCENTIVE THE CLINTON PLAN AUGMENTS THE FLOOD OF COLLEGE STUDENTS FOR WHOM THE ACQUISITION OF KNOWLEDGE IS NOT THE PRIMARY INTEREST IF PRESIDENT CLINTON IS SERIOUS ABOUT EDUCATIONAL INVESTMENT HIS EDUCATIONAL PROGRAM MUST REQUIRE STUDENTS TO BE STUDIOUS IN ORDER TO RECEIVE THE FINANCIAL AID THEY WILL GET FOR HAVING WARM BODIES FOR SHOWING COMMUNITY CONCERN OR FOR CONTRIBUTING TO RACIAL DIVERSITY STUDENTS WHO DO NOT LEARN MUCH ARE A POOR INVESTMENT MR TOBY IS PROFESSOR OF SOCIOLOGY AND DIRECTOR OF THE INSTITUTE OF CRIMINOLOGICAL RESEARCH AT RUTGERS UNIVERSITY SEE RELATED LETTERS LETTERS TO THE EDITOR TO INCITE A PASSION FOR LEARNING WSJ JUNE 1 1993 9305040151 YY93MM06 9306010030 930504 THE NEW MASTERS OF THE UNIVERSE BY KAREN ELLIOTT HOUSE WITH THE SHIP OF STATE ADRIFT AT HOME PRESIDENT CLINTON IS PREPARING TO SET SAIL ON A CHIMERICAL CRUSADE TOWARD THAT DISTANT GRAVEYARD OF GOOD INTENTIONS THE BALKANS FLAPPING ABOUT THE YOUNG PRESIDENT AS HE PLOTS THIS COURSE ARE A FLOCK OF SQUAWKING DAWKS DEEPLY COMMITTED DOVES ON EVERY RECENT FOREIGN INTERVENTION FROM GRENADA TO THE PERSIAN GULF WHO SUDDENLY HAVE ASSUMED THE PLUMAGE AND CRY OF BALKAN HAWKS BUT ONCE MR CLINTON HAS SET SAIL ONTO A LONELY SEA THESE SAME DAWKS ARE ALL TOO LIKELY TO EMERGE AS HIS ALBATROSSES ULTIMATELY THESE BIRDS WILL REEMERGE AS VULTURES PICKING OVER THE REMAINS OF A HALFHEARTED AMERICAN ADVENTURE ABROAD THE CHORUS CALLING FOR MILITARY INTERVENTION IN THE BALKANS GETS ODDER THE MORE YOU THINK ABOUT IT HERE WE HAVE A PRESIDENT WHO DUCKED THE DRAFT IN VIETNAM OSTENSIBLY BELIEVING IT WAS IMMORAL TO USE AMERICAN POWER TO COMBAT AGGRESSION HALFWAY AROUND THE WORLD THE POLITICAL ADVISERS WHO PEOPLE HIS ADMINISTRATION MOSTLY OPPOSED THE 1991 GULF WAR ON GROUNDS RANGING FROM THE ALLEGED ABSENCE OF A US NATIONAL INTEREST TO THE RISK OF BECOMING BOGGED DOWN IN ANCIENT INTERNECINE ARAB CONFLICTS MR CLINTON MOREOVER WAS ELECTED PLEDGING TO DEVOTE FULL ATTENTION TO AMERICA'S DOMESTIC AGENDA INDEED IT IS WORTH RECALLING CANDIDATE CLINTON'S WAFFLE ON THE GULF WAR I GUESS I WOULD HAVE VOTED WITH THE MAJORITY FOR WAR IF IT WAS A CLOSE VOTE HE SAID EVEN AFTER CONGRESS AUTHORIZED WAR MR CLINTON VOICED FAITH IN SANCTIONS I AGREE WITH THE ARGUMENTS OF THE PEOPLE IN THE MINORITY OF THE RESOLUTION THAT WE SHOULD GIVE SANCTIONS MORE TIME AND MAYBE EVEN EXPLORE A FULLSCALE EMBARGO BEFORE WE GO TO WAR SO HERE IS THE PRESIDENT WITH HARDLY A DOMESTIC ACHIEVEMENT TO DATE BEING HUSTLED TOWARD INTERVENING IN A CENTURIESOLD ETHNIC CONFLICT ABROAD BY A CIRCLE OF DAWK ADVISERS AND THEIR MEDIA MEGAPHONES FOR REASONS TOTALLY AT ODDS WITH THEIR PACIFIST PRINCIPLES IN SHORT MR CLINTON IS GETTING THE WRONG ADVICE FROM THE WRONG PEOPLE IN THE WRONG PLACE AT THE WRONG TIME THINK BACK TO THE CHORUS OF ALARUMS RAISED WHEN GEORGE BUSH MOVED TO CONFRONT A CASE OF OVERT AGGRESSION IN THE PERSIAN GULF THE DOVES THEN ARGUED THERE WAS NO CLEAR AMERICAN INTEREST DESPITE THE FACT THAT US OIL SUPPLIES WERE DIRECTLY AT STAKE THE WAR WASN'T WINNABLE THEY ARGUED DESPITE THE FACT THAT AMERICAN WEAPONRY AND MILITARY TACTICS PROVED PRECISELY SUITED TO THAT WAR'S TERRAIN SANCTIONS COULD FORCE SADDAM OUT OF KUWAIT THEY ARGUED THOUGH SANCTIONS HAD NO EFFECT AMERICA WOULD NOT BE ABLE TO MOBILIZE UNITED NATIONS CONGRESSIONAL OR INTERNATIONAL SUPPORT THOUGH MR BUSH MOBILIZED EACH THOUSANDS OF BODY BAGS WOULD BE SHIPPED HOME THEY WORRIED THOUGH IT WAS A VICTORIOUS AMERICAN ARMY THAT SOON MARCHED HOME TO POPULAR PARADES THAT SAME CHORUS OF CRITICS NOW CLAIM THAT LIMITED AMERICAN MILITARY INTERVENTION IN BOSNIA CAN AFFECT THE POLITICAL OUTCOME OF AN ETHNIC CONFLICT WITHOUT FRONT LINES OR EVEN BORDERS WITH NO CLEAR AMERICAN POLITICAL OR ECONOMIC INTERESTS AT STAKE AND WITH NO INTERNATIONAL OR US PUBLIC CONSENSUS FOR INTERVENING OUR EUROPEAN ALLIES HAVE CLOSER TIES TO YUGOSLAVIA BUT THEY ARE OPENLY FEARFUL OF MILITARY ACTION BECAUSE EUROPE HAS EXPERIENCED COUNTLESS BALKAN CRISES AND A WORLD WAR WHOSE ORIGINS LAY IN THESE ETHNIC HATREDS AND POLITICAL RIVALRIES WHAT THEN MOTIVATES THE DAWKS NAIVETE IS THE MOST CHARITABLE ANSWER AMERICANS OF ALL POLITICAL PERSUASIONS UNDERSTANDABLY ABHOR THE CRUELTY OF SERBIAN ETHNIC CLEANSING IN BOSNIA ALL AMERICANS HAVE BEEN AFFECTED BY THE TV FOOTAGE OF DEATH CAMPS AND TORTURES RAPE VICTIMS AND ORPHANS BUT THIS ADDS UP TO HUMANITARIANISM OF THE BEST SORT SYMPATHY WITH VICTIMS MAKING FOREIGN POLICY OF THE WORST SORT ILLDEFINED MILITARY MISSIONS AGAINST VILLAINS PART OF THE PROBLEM WITH THIS MOTIVATION IS THAT IT LOGICALLY LEADS AMERICA TO INTERVENE IN MYRIAD OTHER HUMAN NIGHTMARES FROM THE JUNGLES OF CAMBODIA TO THE DESERTS OF SOUTHERN SUDAN YET PRIORITIZING VICTIMS OFTEN LEADS TO THE CONCLUSION THAT WESTERN LIVES ARE MORE PRECIOUS THAN BLACKER AND BROWNER ONES ANOTHER PROBLEM WITH HUMANITARIANINSPIRED MILITARY INTERVENTION IS THAT VIOLENCE OFTEN BEGETS MORE VIOLENCE INCLUDING ON OUR TV SCREENS AT THE SIGHT OF FLATTENED SERBIAN VILLAGES THE FIRST AMERICAN REACTION WILL BE TO BLAME OUR AIR FORCE FOR IMPRECISE BOMBING THE SECOND TO BLAME OURSELVES FOR ESCALATING VIOLENCE THE FIRST PHOTOS OF AMERICAN AID WORKERS HELD HOSTAGE BY SERBIAN IRREGULARS ARE LIKELY TO WEAKEN AMERICAN RESOLVE DOING THE RIGHT THING IN SUCH SITUATIONS INVOLVES VIOLENCE AND FEW HUMANITARIAN INTERVENTIONISTS HAVE THE STOMACH FOR IT A SECOND EXPLANATION FOR WHAT MAY MOTIVATE THE DAWKS LIES IN THE COMMON ROOMS OF OXFORD WHERE MR CLINTON AND HIS FELLOW RHODES SCHOLARS CONGREGATED IN THAT ERA IN SUCH PRIVILEGED PLACES THERE DEVELOPED THE ATTITUDE THAT BRIGHT MINDS CAN EXPERIMENT WITH GOOD IDEAS WITHOUT TAKING RESPONSIBILITY FOR THE CONSEQUENCES FOREIGN POLICY BECOMES A BRAIN GAME WHERE POLICY MAKERS CAN PROVE THEIR INTELLECTUAL SUPERIORITY WHILE LESSER MORTALS MUST PROVE THEIR COURAGE THESE MASTERS OF THE UNIVERSE RESERVE THE RIGHT TO WALK AWAY IF THINGS DON'T WORK OUT AS INTENDED IT'S PRECISELY THIS MENTALITY THAT LED THE BEST AND BRIGHTEST OF A GENERATION AGO TO PUSH TWO PRESIDENTS INTO THE VIOLENCE OF THE VIETNAM WAR AND THEN TO TURN ON THE VERY VIOLENCE THEY HAD SET IN MOTION LEAVING 500000 MILITARY MEN TRAPPED IN A WAR IT'S THIS STRAIN ABOVE ALL THAT IS WORRISOME IN MR CLINTON'S WASHINGTON ALL THESE BRIGHT INTELLECTS EXPERIMENTING WITH GRAND POLICY INITIATIVES TO SAVE OUR HEALTH CARE SYSTEM SAVE AMERICAN INDUSTRY AND SAVE BOSNIA WHEN SO VERY FEW OF THEM HAVE EVER CURED A PATIENT MET A PAYROLL OR WORN A MILITARY UNIFORM BEFORE ENGAGING HIS AIR FORCE AND HIS ADMINISTRATION IN BOSNIA MR CLINTON WOULD BE WELL ADVISED TO SIT DOWN WITH FORMER SECRETARY OF STATE DEAN RUSK VIRTUALLY THE ONLY VIETNAMERA HAWK WHO NEVER RENEGED AND RECANTED HIS ADVICE TO PRESIDENTS TO ASK HIM WHERE WERE THE BEST AND BRIGHTEST WHEN THE GOING GOT TOUGHEST THE PRESIDENT ALSO OUGHT TO DEMAND A ROLLCALL VOTE IN CONGRESS TO SUPPORT ALL MILITARY MEANS NOT JUST LIMITED FORCE AVAILABLE TO ACHIEVE HIS BALKAN OBJECTIVES WHATEVER THEY ARE IF ADVISERS HAVE A HABIT OF CUTTING AND RUNNING THE ONES THEY TRAMPLE EN ROUTE TO THE EXITS ARE CERTAIN TO BE THE FLEEING LAWMAKERS A THIRD AND MUCH LESS CHARITABLE EXPLANATION FOR DAWK MOTIVATION IS THAT CONSCIOUSLY OR UNWITTINGLY THEY ARE SETTING ABOUT DISCREDITING THE USE OF AMERICAN MILITARY FORCE FOR ANOTHER DECADE OR MORE IT'S THIS VIEW THAT LEADS PROMINENT DAWKS TO SAY THAT THE GULF WAR WAS A HISTORICAL ANACHRONISM AND MILITARY ABERRATION PRECISELY BECAUSE IT WORKED AND IT'S THIS VIEW THAT LEADS THEM TO SUPPORT INTERVENTION IN THE BALKANS AS A KIND OF EXPERIMENT IN NEW WORLD MORALISM WHETHER IT WORKS OR NOT AFTER ALL THEIR REASONING RUNS IT WILL MAKE US FEEL BETTER FOR HAVING DONE SOMETHING MOREOVER THEY CAN ALSO WIN BY LOSING IF LIMITED MILITARY INTERVENTION FAILS TO ACHIEVE THEIR ILLDEFINED OBJECTIVES AS ALMOST SURELY IT WILL THEY CAN FIND SATISFACTION IN HAVING DEMONSTRATED HOW USELESS MILITARY POWER IS AND JUSTIFY FURTHER DISMEMBERMENT OF THE AMERICAN MILITARY THIS IS A CYNICAL THOUGHT BUT ONE THAT MUST HAVE CROSSED MANY A PENTAGON MIND IF IT ISN'T THE MOTIVATION FOR PRESENT POLICY MAKING IT'S VERY LIKELY TO BE THE RESULT OF THE ADVICE PRESIDENT CLINTON IS GETTING THERE IS IN FACT AN ENTIRELY CREDIBLE SET OF ARGUMENTS FOR EXERTING AMERICAN MILITARY POWER IN BOSNIA AND BEYOND BUT THEY REST ON FAR MORE THAN GUILT AND SCHOOLBOY EXPERIMENTATION INDEED THEY ASSUME THAT AMERICA IS AND MUST REMAIN THE WORLD'S PRIMARY POLITICAL AND MILITARY POWER AND THAT THIS NATION HAS BOTH THE OBLIGATION AND THE OPPORTUNITY TO SHAPE THE FUTURE OF THOSE PARTS OF THE WORLD CURRENTLY IN CHAOS AS A CONSEQUENCE OF OUR REMARKABLE VICTORY OVER COMMUNISM SURELY AMERICA DIDN'T DEFEND EUROPE FROM COMMUNISM FOR NEARLY 50 YEARS TO ABANDON IT TO CHAOS THE LOGICAL COROLLARY IS THAT AMERICA MUST CONTINUE TO PAY A PRICE FOR PEACE AND STABILITY TO PLAY WORLD LEADER THIS IS NOT AMERICA AS SANTA CLAUS PASSING OUT FOOD TO THE STARVING BUT AMERICA IN ITS HISTORIC ROLE OF POLITICAL AND MILITARY LEADERSHIP TO PRESERVE ITS INTEREST IN GLOBAL PEACE AND PROSPERITY IN SHORT THE ONLY CREDIBLE ARGUMENT FOR INTERVENTION IN THIS NEW CRISIS IS THAT OLDEST ONE BUT THIS ROLE OF AMERICA AS WORLD LEADER IS NOT ONE THE CLINTON ADMINISTRATION BUYS WHAT THE REST OF US ARE GOING TO BE SOLD IS A SUPPOSEDLY PAINLESS EXPERIMENT IN SUPPOSEDLY LIMITED MILITARY ACTION FOR NEBULOUS GOALS AGAINST AN ENEMY THAT HAS LARGELY ACHIEVED ITS AIMS ALREADY DOWN THIS ROAD LIES ANOTHER LEBANON THE ONE MILITARY INTERVENTION OF THE 1980S THAT ENDED IN FAILURE MS HOUSE IS VICE PRESIDENT INTERNATIONAL OF DOW JONES SEE RELATED LETTERS LETTERS TO THE EDITOR TO INCITE A PASSION FOR LEARNING WSJ JUNE 1 1993 9305040029 YY93 MM06 9306010029 930514 REVIEW & OUTLOOK EDITORIAL DIVERSITY LENDING AT ONE POINT IN THE PRESIDENTIAL TRANSITION A MAN RESEMBLING BILL CLINTON STOOD UP AND RAILED AGAINST BEAN COUNTERS AND QUOTA GAMES WHATEVER HAPPENED TO THAT GUY AN OXFORD PAL EUGENE LUDWIG HAS TAKEN OVER AS COMPTROLLER OF THE CURRENCY THE LEAD REGULATOR FOR NATIONALLY CHARTERED BANKS MR LUDWIG NOW A BELTWAY LAWYER WANTS TO SEND OUT UNDERCOVER TESTERS WHO WOULD POSE AS APPLICANTS TO SEE IF BANKS ARE DENYING LOANS TO MINORITIES LAST WEEK HE ANNOUNCED THE TARGETING OF 900 BANKS THAT SAID NO TO FIVE OR MORE BLACKS HISPANICS OR NATIVE AMERICANS IN THE PAST YEAR IT'S NOT CLEAR HOW IT BENEFITS A BANK TO TURN AWAY PROFITABLE BUSINESS IF INNERCITY BORROWERS FACE A PROBLEM IT'S A REGULATORY FRAMEWORK THAT INHIBITS THE EMERGENCE OF BANKS THAT SPECIALIZE IN SERVING THEM NOT LONG AGO ILLINOIS'S LEGISLATURE INADVERTENTLY LET ITS AUTO INSURANCE MARKET LAPSE INTO A STATE OF DEREGULATION AND ONE RESULT WAS A SHARP RISE IN THE AVAILABILITY OF INSURANCE FOR RESIDENTS OF BAD NEIGHBORHOODS TESTING GOT STARTED IN THE HOUSING DISCRIMINATION CASES OF THE '60S AND '70S WHEN IT MAY ACTUALLY HAVE DONE SOME GOOD EVERYBODY UNDERSTANDS WHY SOME DEVELOPERS MIGHT FIND IT IN THEIR INTEREST TO TURN AWAY MINORITIES BUT NOW TESTING IS POISED TO BREAK OUT INTO THE GENERAL ECONOMY WHERE THE POTENTIAL FOR MISCHIEF IS HIGH MASSACHUSETTS RECENTLY BROUGHT COMPLAINTS AGAINST BROOKS BROTHERS AND ANOTHER BOSTON RETAILER AFTER SENDING IN BLACK AND WHITE COLLEGE STUDENTS TO POSE AS JOB APPLICANTS OTHER STATES HAVE BEEN WATCHING CLOSELY AS MICHAEL DUFFY OF THE MASSACHUSETTS COMMISSION AGAINST DISCRIMINATION TELLS US HIRING IS COMPLEX AND SUBJECTIVE PROVING BIAS ISN'T EASY UNFORTUNATELY THE BOSTON EXPERIMENT WON'T BE VETTED BY A COURT BOTH STORES SETTLED UP IN RETURN FOR MCAD DROPPING THE CHARGES AGAINST THEM MR DUFFY'S AGENCY CAN'T LEVY FINES BUT HE STILL MANAGED TO WALK AWAY WITH TENS OF THOUSANDS OF DOLLARS IN CONTRIBUTIONS TO MCAD'S MINORITY OUTREACH FUND THE STORES ALSO PROMISED TO BEAT THE BUSHES FOR MINORITY APPLICANTS AND RUN ADS IN A LOCAL BLACK NEWSPAPER THE TERMS WERE SO GOOD WE JUST COULDN'T PASS IT UP MR DUFFY TOLD THE PRESS BOTH STORES HOTLY DENIED ANY WRONGDOING IN THIS SHAKEDOWN PETER GORDON OF WALKER'S RIDING APPAREL NOTES THAT HIS SMALL STAFF HAS RECENTLY INCLUDED THREE GAYS TWO WOMEN AND AN ASIAN YOU CAN'T WIN UNLESS YOU HAVE INFINITELY DEEP POCKETS HE TELLS US A PUBLIC HEARING WOULD HAVE COST 10000 IN LEGAL FEES AND THE JUDGE IS AN EMPLOYEE OF MCAD MR GORDON TOLD THE BOSTON GLOBE I HAD THE CHOICE OF BEING RAPED ONCE OR BEING RAPED 10 TIMES MEANWHILE MCAD'S MR DUFFY PLANS TO EXPAND HIS STING OPERATION FIVEFOLD NEXT YEAR AND TARGET HUNDREDS AND HUNDREDS OF COMPANIES FOR RACE AGE AND GENDER BIAS THE 29YEAROLD MR DUFFY IS ONE OF GOVERNOR BILL WELD'S MORE SINGULAR APPOINTMENTS AFTER THE LA RIOTS HE ISSUED A REPORT SAYING THAT THE CITIES OF MASSACHUSETTS WERE URBAN FUNERAL PYRES READY TO EXPLODE AT THE SLIGHTEST INCENDIARY SPARK HIS ROUGHING UP OF BOSTON RETAILERS WAS APPLAUDED BY LOUIS ELISA OF THE LOCAL NAACP WHO SAID IT SENDS A MESSAGE OUT THERE THAT OTHERS COULD BE VULNERABLE AND MAYBE YOUR COMPANY COULD BE NEXT ON THE HIT LIST NO DOUBT BUT WE WONDER HOW MUCH REAL DISCRIMINATION WILL BE REMEDIED IN THE PROCESS MORE LIKELY IT WILL ONLY FOSTER A CLIMATE OF INTIMIDATION AIMED AT MAKING EVERYBODY IN THE ECONOMY ADOPT QUOTAS THERE'S GOT TO BE SOME LIMIT ON BUREAUCRATIC POLICING OF PRIVATE DECISIONMAKING EVEN IF A FEW GENUINE RACISTS SLIP THROUGH THE NET OTHERWISE IT STOPS BEING PRIVATE DECISIONMAKING THE CLINTON ADMINISTRATION IS SETTING OFF RESOLUTELY IN THE OPPOSITE DIRECTION MR LUDWIG'S INITIATIVE MAY WELL END UP IMPORTING QUOTA GAMES INTO THE BUSINESS OF ALLOCATING CREDIT SEE RELATED LETTER LETTERS TO THE EDITOR COVERT DISCRIMINATION UNCOVERED BY TESTING' WSJ JUNE 1 1993 9305140087 YY93 MM06 9305280200 930528 INTERNATIONAL YEN'S RISE ISN'T LIKELY TO DRIVE JAPANESE TO BUILD MORE PLANTS ABROAD THIS TIME BY MASAYOSHI KANABAYASHI STAFF REPORTER OF THE WALL STREET JOURNAL TOKYO THE LAST TIME THE YEN SURGED IN VALUE AGAINST THE DOLLAR IN THE MID1980S JAPAN'S MANUFACTURERS RESPONDED BY BUILDING A HUGE BASE OF FACTORIES OVERSEAS WHERE OPERATING COSTS ARE LOWER NOW THE VALUE OF THE YEN IS ROCKETING AGAIN IT'S UP ALMOST 14 THIS YEAR AND TRADED AT 10715 YEN TO THE DOLLAR IN LATE NEW YORK TRADING YESTERDAY WHICH WOULD SEEM TO FORETELL ANOTHER BIG SHIFT OF PRODUCTION ABROAD DON'T COUNT ON IT AT LEAST IN THE NEAR TERM SAY GOVERNMENT AND INDUSTRY OFFICIALS AND THAT MEANS THE LATEST CURRENCY SHIFT COULD BE MORE PAINFUL FOR JAPAN'S BUSINESSES THIS TIME AROUND WHAT'S DIFFERENT TODAY THANKS TO RECESSIONS AROUND THE WORLD JAPAN'S BLUECHIP COMPANIES ARE ALREADY SADDLED WITH OVERCAPACITY AND GENERALLY DON'T NEED MORE PLANTS WHAT'S MORE EARNINGS HAVE BEEN POOR AND IN MANY CASES THE MONEY ISN'T THERE TO BUILD PLANTS ABROAD THE COMPANIES ARE OCCUPIED WITH RESTRUCTURING DOMESTIC OPERATIONS SAYS AN OFFICIAL AT THE MINISTRY OF INTERNATIONAL TRADE AND INDUSTRY NOW THERE ISN'T SUCH AN EXPLOSIVE ATMOSPHERE FOR OVERSEAS INVESTMENT SINCE TAKING OFFICE IN JANUARY THE CLINTON ADMINISTRATION HAS JAWBONED THE DOLLAR DOWN AGAINST THE YEN TO TRY TO CUT JAPAN'S MAMMOTH TRADE SURPLUS THE DOLLAR'S LATEST FREE FALL WAS TRIGGERED EARLIER THIS WEEK BY A TREASURY DEPARTMENT OFFICIAL'S REMARKS BEFORE CONGRESS THAT CURRENCY TRADERS INTERPRETED AS SUPPORTING A WEAKER DOLLAR THOSE COMMENTS LIKE EARLIER WASHINGTON STATEMENTS INFURIATED JAPANESE OFFICIALS IT'S A PROBLEM WHEN JAPAN IS MAKING ALLOUT EFFORTS TO BRING BACK ITS ECONOMY THAT US GOVERNMENT OFFICIALS SPLASH COLD WATER ON THE RECOVERY SAYS YUJI TANAHASHI VICE MINISTER OF MITI JAPAN IS WORRIED THAT A STRONGER YEN WILL MAKE THE NATION'S EXPORTS MORE EXPENSIVE ABROAD DRIVING AWAY CUSTOMERS THERE'S NO QUESTION JAPANESE EXECUTIVES ARE TEMPTED TO SHIFT MORE PRODUCTION ABROAD A RATE OF 110 YEN TO THE DOLLAR IS THE VERY LIMIT FOR JAPANESE MANUFACTURERS TO BE ABLE TO KEEP DOMESTIC OPERATIONS SAID TAKESHI NAGANO PRESIDENT OF THE JAPAN FEDERATION OF EMPLOYER ASSOCIATIONS THIS WEEK BUT TRY FINDING THE MONEY TO MOVE PRODUCTION OFFSHORE MANY OF JAPAN'S TOP COMPANIES THIS WEEK RELEASED HORRENDOUS EARNINGS REPORTS FOR THE FISCAL YEAR ENDED MARCH 31 OVERALL CORPORATE JAPAN HAS POSTED LOWER PROFITS FOR THE THIRD CONSECUTIVE YEAR AN UNPRECEDENTED STREAK PROFITS ARE EXPECTED TO FALL AGAIN THIS YEAR CORPORATE CAPITAL SPENDING ALSO IS DOWN FOR THE SECOND YEAR IN A ROW THE FIRST TWOYEAR DROP SINCE THE OIL SHOCK IN THE MID1970S ANOTHER REASON COMPANIES WON'T INVEST SO HEAVILY IN THE COMING MONTHS IS THAT THEY OVERSPENT THE LAST TIME AND ALREADY HAVE PLENTY OF UNUSED FACTORY SPACE IN FOREIGN COUNTRIES NIPPON COLUMBIA CO AN AUDIO EQUIPMENT MAKER RECENTLY SAID THAT BY NEXT YEAR ITS OVERSEAS PLANTS WILL MAKE 60 OF THE COMPANY'S GOODS UP FROM 25 NOW BUT THE COMPANY DOESN'T NEED TO BUILD ANY FACTORIES THE INCREASE WILL BE CARRIED OUT AT EXISTING PLANTS IN TAIWAN AND GERMANY SIMILARLY RICOH CO WILL SOON MAKE 80 OF ITS CAMERAS OVERSEAS UP FROM 60 NOW BY INCREASING PRODUCTION AT AN EXISTING PLANT IN TAIWAN FOR AT LEAST ONE JAPANESE EXPORTER THE HIGH YEN HAS LEFT ONLY ONE CHOICE TO GO OUT OF BUSINESS THIS WEEK WATANABE SEISAKUSHO A SMALL TABLEWARE MAKER WENT BANKRUPT LEAVING ABOUT 438 MILLION YEN 4 MILLION IN UNPAID DEBTS THE 70YEAROLD COMPANY WHICH REAPED 70 OF ITS REVENUE FROM OVERSEAS SALES IS THE FIRST SUCH VICTIM OF THE YEN'S RECENT APPRECIATION ACCORDING TO TEIKOKU DATA BANK LTD A CREDIT RESEARCH INSTITUTE 9305280199 930528 WORLD MARKETS BROAD TOKYO MARKET RISES WHILE NIKKEI SLIPS LONDON PRICES GAIN ON BRITISH CABINET CHANGE A WALL STREET JOURNAL NEWS ROUNDUP MORE TOKYO STOCKS ROSE THAN FELL THURSDAY BUT THE NIKKEI INDEX SLIPPED LONDON PRICES ROSE SLIGHTLY AS BRITAIN GOT A NEW TREASURY CHIEF IN A CABINET SHUFFLE THAT LIFTED HOPES FOR A LENDINGRATE CUT FRANKFURT EQUITIES SCORED THEIR THIRD GAIN IN A ROW WORLDWIDE STOCK PRICES ROSE IN DOLLAR TERMS THE DOW JONES WORLD STOCK INDEX WAS AT 10850 UP 095 REFLECTING INCREASES IN ASIA/PACIFIC AND EUROPEAN MARKETS AND A DROP IN THE AMERICAS MAJOR BANK STOCKS WERE THE TOP GAINERS IN THE DOW JONES WORLD INDUSTRY GROUPS CLOSING AT 11075 UP 383 OR 36 WITH FUJI BANK OF JAPAN POSTING A 66 GAIN IN ITS LOCAL CURRENCY HEALTH CARE STOCKS TRAILED AT 10201 DOWN 147 OR 14 WITH COMMUNITY PSYCHIATRIC CENTERS OF THE US SLIDING 51 IN LOCAL CURRENCY ON FRIDAY THE NIKKEI EASED 2570 POINTS TO CLOSE THE MORNING SESSION AT 2082693 THE BROADER MARKET GAINED ON BUYING OF FINANCIALSECTOR ISSUES EVEN THOUGH PROFITTAKING AND INDEXLINKED ARBITRAGE SELLING KNOCKED THE NIKKEI DOWN THE INDEX HIT A SESSION PEAK OF 2110591 REGAINING THE 21000 LEVEL FOR THE FIRST TIME IN TWO WEEKS SHORTLY AFTER THE MARKET OPENED AS THE JAPANESE YEN'S CLIMB TO RECORD HIGHS RAISED EXPECTATIONS FOR ANOTHER CUT IN OFFICIAL JAPANESE INTEREST RATES BUT UNLIKE THE NIKKEI WHICH IS A SIMPLE ARITHMETIC AVERAGE OF THE PRICE CHANGES OF 225 SHARES THE WEIGHTED TOPIX RECEIVED A BIGGER BOOST FROM THE RISE IN BANKING STOCKS LEAVING THE BROADER INDEX UP AND INDICATING THE MARKET'S UNDERLYING STRENGTH BROKERAGE FIRMS AND INSURANCE COMPANIES ALSO POSTED STRONG INCREASES SMALLCAPITALIZATION SHARES ATTRACTED STRONG BUYING INTEREST ON EXPECTATIONS THAT LOWER INTEREST RATES AND AN EXPECTED ECONOMIC UPTURN WILL LIFT THOSE COMPANIES' PROFITS MORE QUICKLY AND SIGNIFICANTLY THAN THOSE OF LARGECAPITALIZATION ISSUES WHICH FELL ON PROFITTAKING BUT WITH INVESTMENTTRUST FUND LAUNCHES SCHEDULED FOR TODAY INCLUDING TWO LARGE FNDS AIMED AT LOWPRICED LARGECAP SHARES SELLING PRESSURE THURSDAY WAS RESTRAINED FOREIGN INVESTORS DEALERS AND PUBLIC PENSION FUNDS BOUGHT FINANCIAL ISSUES EXPORTERS WHICH ARE HURT BY A STRONG YEN MOSTLY HAD ONLY MINOR LOSSES IN LONDON THE FINANCIAL TIMESSTOCK EXCHANGE 100SHARE INDEX ROSE 84 POINTS TO 28553 AFTER CLIMBING AS HIGH AS 28605 THOUGH ADVANCING ISSUES LED DECLINING ISSUES BY JUST 4845 THE FT 30STOCK INDEX ADDED 52 POINTS TO 22138 VOLUME WAS 6605 MILLION SHARES COMPARED WITH 6268 MILLION SHARES A DAY EARLIER INVESTORS REACTED POSITIVELY BUT CAUTIOUSLY TO THE CABINET CHANGES AWAITING CLEARER ANALYSIS OF NEW ECONOMIC POLICY GOALS STOCKS' RISE WAS KICKED OFF BY NEWS THAT NORMAN LAMONT WAS DROPPED AS CHANCELLOR OF THE EXCHEQUER AND SUCCEEDED BY KENNETH CLARKE PREVIOUSLY HOME SECRETARY SOME INVESTORS HOPED MR CLARKE MIGHT CUT INTEREST RATES THOUGH THEY RECOGNIZED HE WILL PRESIDE OVER A SLOWLY RECOVERING ECONOMY A STEADY POUND AND WEAK INFLATION PRESSURE ALL OF WHICH DON'T SUGGEST A RATE CUT SOON BUT INVESTORS ALSO WANTED ASSURANCES THAT MR CLARKE IS COMMITTED TO ADDRESSING LONGERTERM ISSUES SUCH AS THE GOVERNMENT DEFICIT AND THEY ARE LOOKING FOR BETTER BRITISH CORPORATE PROFITS AND ECONOMIC INDICATORS IN FRANKFURT THE DAX 30STOCK INDEX ADDED 1247 POINTS TO 163447 FRACTIONALLY OFF THE DAY'S HIGH THOUGH VOLUME WAS LOW ONLY FOUR OF THE DAX STOCKS FELL WHILE 26 ROSE THE STRENGTH WAS ATTRIBUTED TO A SOLID PERFORMANCE BY GERMAN BONDS WEDNESDAY'S RECORD CLOSE ON WALL STREET AND FAVORABLE GERMAN STATE INFLATION IN PARIS EXPECTATIONS OF FURTHER CUTS IN FRENCH INTEREST RATES GAVE SHARE PRICES A BOOST WITH FOREIGN BUYERS FOCUSING ON RATESENSITIVE STOCKS SUCH AS BANKS AMSTERDAM PRICES ENDED MIXED AS A BROADLY LOWER DOLLAR OFFSET THE USUALLY BUOYING EFFECT OF A CUT IN DUTCH CENTRALBANK INTEREST RATES MILAN SHARES FELL ACROSS THE BOARD IN TRADING THAT WAS TECHNICALLY DRIVEN CONSOLIDATING RECENT GAINS AS WELL AS APPREHENSIVE BECAUSE OF A CARBOMB EXPLOSION IN FLORENCE TWO WEEKS AFTER A CAR BOMBING IN ROME IN MADRID SHARES ROCKETED UP AGAIN AS TALK OF A DEVALUATION OF THE SPANISH PESETA FUELED THE RALLY WITH GENERAL ELECTIONS SCHEDULED JUNE 6 THE RULING SOCIALIST GOVERNMENT HAS MADE SEVERAL SHARP CUTS IN INTEREST RATES AND THE CENTERRIGHT OPPOSITION PARTIDO POPULAR ALSO HAS PROMISED TO RELAX CREDIT STOCKHOLM EQUITIES REBOUNDED FROM THE PREVIOUS DAY'S LOSSES TO CLOSE BROADLY HIGHER HELPED BY FIRMER PRICES ON WALL STREET DECLINING INTEREST RATES AND ADVANCES IN BLUE CHIPS THAT ATTRACTED FOREIGN BUYING FOREIGN INVESTORS ALSO WENT SHOPPING IN ZURICH FOR BANKING SHARES WHICH HAVE STRONG EARNINGS PROSPECTS AND THE MARKET ROSE SYDNEY PRICES CONTINUED TO LOG GAINS ACROSS THE BOARD AS THE MARKET TOOK ITS LEAD FROM WALL STREET AND FOREIGN INVESTORS INCREASED THEIR PARTICIPATION HONG KONG STOCKS WERE PROPELLED UP TO ANOTHER NEW HIGH ON MORE BULLISHNESS ABOUT SINOBRITISH RELATIONS AND SPECULATION THAT THE TWO SIDES WILL DISCUSS FINANCING OF THE BRITISH COLONY'S AIRPORT PROJECT SINGAPORE SHARES CLIMBED TO A RECORD HIGH TAIPEI SHARE PRICES FELL ON NEWS THAT TAIWAN'S APRIL CHECKPAYMENT DEFAULT HIT A SEVENMONTH HIGH AND INVESTORS WERE WORRIED ABOUT IMPORTRELATED INFLATION SINCE THE US DOLLAR HIT A RECORD LOW AGAINST THE JAPANESE YEN AND THE US CURRENCY'S DRASTIC RISE AGAINST THE NEW TAIWAN DOLLAR SEOUL EQUITIES SURGED ON SPECULATIVE REPORTS THAT SOUTH KOREA WILL DELAY FOR TWO OR THREE YEARS THE IMPLEMENTATION OF A REALNAME FINANCIAL TRANSACTION SYSTEM WELLINGTON STOCKS ROSE TO A 32MONTH HIGH DESPITE PROFITTAKING IN BLUE CHIPS AS INVESTORS WERE ENCOURAGED BY THE PACE OF NEW YORK STOCKS AMONG CORPORATE DEVELOPMENTS IN TOKYO THREE TECHNOLOGY COMPANIES POSTED DISMAL RESULTS FOR THE YEAR ENDED MARCH 31 AS EXPECTED BUT PREDICTED A SLIGHT TURNAROUND IN THE CURRENT YEAR FUJITSU FELL 4 YEN TO 771 YEN 711 HITACHI DROPPED 11 OR 13 TO 849 WHILE TOSHIBA ROSE 7 TO 722 FUJITSU JAPAN'S LARGEST COMPUTER COMPANY HAD ITS FIRSTEVER NET LOSS 326 BILLION YEN 2986 MILLION COMPARED WITH YEAREARLIER PROFIT OF 122 BILLION YEN TOSHIBA'S NET INCOME SLUMPED 48 TO 2055 BILLION YEN HITACHI'S CONSOLIDATED PROFIT DROPPED 39 TO 7729 BILLION YEN IN FRANKFURT VEBA ROSE 540 MARKS OR 14 TO 39080 MARKS 23999 ON THE LAST DAY OF TRADING BEFORE ITS DIVIDEND PAYMENT THE TRADE CHEMICAL AND ENERGY COMPANY'S FIRSTQUARTER GROUP PROFIT SANK 13 TO 201 MILLION MARKS 1234 MILLION HERE ARE PRICE TRENDS ON THE WORLD'S MAJOR STOCK MARKETS AS CALCULATED BY MORGAN STANLEY CAPITAL INTERNATIONAL PERSPECTIVE GENEVA TO MAKE THEM DIRECTLY COMPARABLE EACH INDEX CALCULATED IN LOCAL CURRENCIES IS BASED ON THE CLOSE OF 1969 EQUALING 100 THE PERCENTAGE CHANGE IS SINCE YEAREND 9305280198 930528 TRACKING TRAVEL BY JONATHAN DAHL AFTER RELYING MAINLY ON THE FRONTDESK SYSTEM FOR DECADES HOTELS ARE STARTING TO TEST THE LATEST GIZMOS FOR EXPRESS CHECKIN AND CHECKOUT AT THE TROPICANA RESORTS & CASINO HOTEL IN LAS VEGAS GUESTS ARE SOMETIMES CHECKED IN BY EMPLOYEES USING HANDHELD COMPUTERS THE COMPUTERS PERFORM MOST OF THE TASKS THE FRONT DESK DOES LEAVING THE GUEST ONLY TO PICK UP THE ROOM KEY OTHER PROPERTIES USE SIMILAR COMPUTERS TO CHECK IN GUESTS COMING IN ON HOTEL VANS FROM LOCAL AIRPORTS IN CHICAGO GUESTS AT THE O'HARE AIRPORT HILTON CAN CHECK IN AT A BAGGAGE CLAIM AREA AT THE AIRPORT SIMILARLY THE OPRYLAND HOTEL IN NASHVILLE HAS SET UP A CHECKIN COUNTER AT THE NASHVILLE AIRPORT THE DEPARTURE PROCESS MEANWHILE IS MOVING BEYOND VIDEO CHECKOUT IN THAT SYSTEM GUESTS CAN REVIEW THEIR BILLS AND CHECK OUT THROUGH THEIR ROOM TVS BUT TO GET A COPY OF THE BILL THEY USUALLY MUST EITHER VISIT THE FRONT DESK OR HAVE IT MAILED TO THEM ONLY 20 OF GUESTS USE VIDEO CHECKOUT ACCORDING TO A SURVEY BY CHERVENAK KEANE & CO A CONSULTING FIRM IN NEW YORK IT SAVES TIME BUT NOT ENOUGH TIME SAYS LARRY CHERVENAK THE FIRM'S PRESIDENT SO THE MILFORD PLAZA HOTEL IN NEW YORK CITY HAS DEVICES SIMILAR TO CASH MACHINES IN ITS LOBBY ON WHICH GUESTS CAN CHECK OUT AND GET A FULL COPY OF THE BILL THE HOTEL SAYS 25 OF ITS GUESTS USE THE MACHINES THE BUSINESSMAN ALWAYS USES IT A SPOKESMAN SAYS BUT WE GOT A LOT OF TOURISTS AND IT'S JUST NOT THEIR BAG YET THEY WANT THE FRONT DESK EVENTUALLY EXPERTS SAY HOTELS MAY COMBINE VIDEO CHECKOUT WITH INROOM FAX MACHINES GUESTS COULD RECEIVE FAXED COPIES OF BILLS EITHER WAY THE HOTEL INDUSTRY HAS ALREADY REACHED A TURNING POINT THE SAVVY TRAVELER THE ONE WHO KNOWS TO LOOK FOR HOTELS THAT HAVE THESE SORTS OF THINGS ALMOST NEVER HAS TO WAIT TO CHECK IN OR CHECK OUT ANYMORE SAYS MR CHERVENAK WHAT'S GOOD ENOUGH FOR PRESIDENT CLINTON APPARENTLY ISN'T GOOD ENOUGH FOR THE COUNTRY'S TOP BUSINESS EXECUTIVES EARLIER THIS YEAR THE PRESIDENT SPENT ONE OF HIS FIRST NIGHTS OUT OF THE WHITE HOUSE AT THE COMFORT INN IN CHILLICOTHE OHIO THE ROOM HAD NO BALCONY NO DESIGNER BUBBLE BATH BUT AS THE HOTEL LIKES TO POINT OUT A NICE VIEW OF A PARKING LOT AFTER HARD BARGAINING BY HIS STAFF HE PAID ONLY 40 FOR THE NIGHT SLIGHTLY BELOW THE STANDARD GOVERNMENT RATE COMFORT INN OWNED BY CHOICE HOTELS INTERNATIONAL HAD HOPED THAT AT LEAST SOME TOP BUSINESS TRAVELERS WOULD FOLLOW THE PRESIDENT'S LEAD BUT A SPOKESWOMAN FOR CHOICE SAYS THE CHAIN HASN'T NOTICED ANY SURGE IN BUSINESS BOOKINGS WE HAVE HAD A GENERAL PICKUP IN BUSINESS TRAVEL RESERVATIONS OVER THE PAST FEW YEARS SHE SAYS BUT THAT'S THE ECONOMY NOT CLINTON INSTEAD OF STAYING AT LESSFANCY PROPERTIES SOME TOP EXECUTIVES ARE AT LEAST NEGOTIATING LOWER RATES AT FOURSTAR HOTELS IF THE PRESIDENT'S STAFF HAD BEEN SMART THAT'S WHAT THEY WOULD HAVE DONE SAYS HAROLD SELIGMAN PRESIDENT OF MANAGEMENT ALTERNATIVES A TRAVEL CONSULTANT IN STAMFORD CONN I THINK THE ATTITUDE MOST CEOS HAVE IS WELL IF HE WANTS TO DO IT FINE BUT DON'T EXPECT ME TO' SAYS JOHN HINTZ PRESIDENT OF THE NATIONAL BUSINESS TRAVEL ASSOCIATION WHICH REPRESENTS CORPORATE TRAVEL MANAGERS I SUPPOSE IT'S SETTING AN EXAMPLE BUT I'M NOT SURE OF WHAT SOME CARRENTAL COMPANIES ARE EXPANDING THEIR CONTROVERSIAL EFFORTS TO CHECK DRIVING RECORDS AND REJECT RISKY DRIVERS AFTER TESTING THE POLICY IN NEW YORK STATE HERTZ NATIONAL CAR RENTAL SYSTEM AND BUDGET RENT A CAR NOW CHECK THE DRIVING RECORDS OF FLORIDA DRIVERS AND ARE LIKELY TO EXPAND THE PROGRAM TO CALIFORNIA THIS SUMMER AVIS HAS BEGUN TO CHECK RECORDS OF NEW YORK AND FLORIDA DRIVERS AT SOME NEW YORK LOCATIONS AND PLANS TO EXPAND TO OTHER STATES SOON WE HAVE TO AN AVIS SPOKESWOMAN SAYS WE'RE GETTING SOME OF THE DRIVERS THAT OUR COMPETITORS ARE TURNING AWAY SO FAR THE CARRENTAL COMPANIES ARE TURNING AWAY 6 TO 8 OF DRIVERS THEY ARE SCREENING THOUGH MANY ARE REJECTED FOR SUCH SERIOUS OFFENSES AS DRIVING WHILE INTOXICATED CRITICS SAY SOME DRIVERS ARE TURNED AWAY FOR HAVING THREE MOVING VIOLATIONS IN THE PAST THREE YEARS EVEN IF ONLY FOR SUCH OFFENSES AS TRAVELING A FEW MILES AN HOUR OVER THE SPEED LIMIT MOREOVER CUSTOMERS USUALLY AREN'T TURNED AWAY UNTIL THEY REACH THE COUNTER EVEN IF THEY MAKE RESERVATIONS THE CONSEQUENCES OF THAT ARE JUST AWFUL SAYS ED PERKINS EDITOR OF CONSUMER REPORTS TRAVEL LETTER YOU'VE GOT PEOPLE STRANDED AT AIRPORTS IF CARRENTAL COMPANIES ARE GOING TO DO THIS THEY SHOULD AT LEAST CHECK YOUR RECORD ON THE PHONE BEFORE YOU SHOW UP RENTAL COMPANIES SAY THEY CHECK DRIVERS AT THE COUNTER BECAUSE THEY WANT UPTOTHEMINUTE INFORMATION LIKE MANY CRITICS MR PERKINS SAYS CHECKING DRIVING RECORDS RAISES PRIVACY ISSUES BUT CARRENTAL COMPANIES NOTE THAT DRIVING RECORDS ARE PUBLICLY AVAILABLE IN MOST STATES HERTZ SAYS IT HAS RECEIVED FEW COMPLAINTS ABOUT THE POLICY AND IS REJECTING FEWER DRIVERS AS TIME GOES BY THE BAD DRIVERS JUST STOP COMING TO US A HERTZ SPOKESMAN SAYS SINCE IT FIRST TESTED THE PLAN LAST SUMMER HERTZ SAYS ACCIDENTS IN ITS NEW YORK FLEET HAVE PLUNGED CORPORATE DISCOUNTING WITH AIRLINES IS STILL COMMON FOR BIG COMPANIES COMPANIES WITH ANNUAL AIR VOLUMES UNDER 1 MILLION BOOK 2 OF THEIR TICKETS USING NEGOTIATED RATES THE BIGGEST COMPANIES BOOK 37 OF THEIR TICKETS THIS WAY ACCORDING TO TOPAZ ENTERPRISES AN AIRLINE AUDITING FIRM IN PORTLAND ORE THE LIST OF TAXES ON TRAVELERS MAY KEEP GROWING THE AIRLINE INDUSTRY IS ASKING THE FEDERAL GOVERNMENT FOR A POSSIBLE 5 INCREASE IN PASSPORT FEES AS WELL AS A NEW 5 CUSTOMS FEE FOR PASSENGERS ARRIVING IN THE US FROM CANADA MEXICO AND THE CARIBBEAN 9305280197 930528 CORPORATE FOCUS A&P SEEKING TO ADD ANOTHER DASH OF RETAILING MAGIC STRONGER COMPETITION SMALLER STORES MEAN CHALLENGE FOR GROCERY CHAIN BY DAVE KANSAS STAFF REPORTER OF THE WALL STREET JOURNAL MONTVALE NJ WHEN GREAT ATLANTIC & PACIFIC TEA CO'S EARNINGS SOURED RECENTLY THE NEW YORK STATE EMPLOYEES PENSION FUND PUBLICLY CRITICIZED MANAGEMENT BUT JAMES WOOD A&P'S CHAIRMAN AND CHIEF EXECUTIVE FIGURES THAT IF HE COULD TURN THE GROCERY CHAIN AROUND ONCE HE CAN DO IT AGAIN MR WOOD GOT RAVE NOTICES IN THE EARLY 1980S WHEN HE BROUGHT THE COMPANY BACK FROM NEARBANKRUPTCY BY SLASHING COSTS AND MODERNIZING STORES THE LAST TWO YEARS HAVE BROUGHT ANOTHER TEST THE RECESSION MADE CUSTOMERS MORE TIGHTFISTED AND GROCERS GENERALLY HAD TO CUT PRICES AND PROFITS TO COMPETE A&P'S WOES WERE AGGRAVATED BY SEVERAL ILLTIMED ACQUISITIONS THAT SPURRED THE NEW YORK STATE COMMON RETIREMENT FUND TO PROPOSE THAT SHAREHOLDERS BE ALLOWED TO COMMENT ON MANAGEMENT'S PERFORMANCE IN THE ANNUAL PROXY STATEMENT NONETHELESS WE THINK WE ARE BEGINNING TO TURN THIS AROUND MR WOOD DECLARES HE SAYS IMPROVING ECONOMIES IN A&P'S KEY NEW YORK NEW ENGLAND AND CANADIAN REGIONS HAVE HELPED BOOST SALES AND A&P SETTLED LABOR CONTRACTS WITH GROCERY UNIONS IN NEW YORK AND NEW JERSEY WHILE SEVERAL OF ITS MAJOR COMPETITORS HAVE BEEN HIT BY SELECTIVE STRIKES REMODELING NEEDS BUT HURDLES REMAIN ALTHOUGH A&P SPENT THE 1980S DRESSING UP ITS DOWDY IMAGE BY REMODELING AND REDECORATING STORES ANOTHER ROUND SEEMS CALLED FOR A&P'S STATURE BEGAN TO SLIP IN THE 1970S WHEN IT WAS DETHRONED BY SAFEWAY INC AS THE NATION'S LARGEST SUPERMARKET CHAIN FRUSTRATED BY A&P'S POOR PERFORMANCE MAJOR SHAREHOLDERS INCLUDING THE FOUNDING HARTFORD FAMILY DECIDED TO UNLOAD THEIR COLLECTIVE 42 INTEREST IN THE COMPANY GERMANY'S TENGELMANN GROUP BOUGHT 25 OF THE COMPANY IN 1979 AND BY 1981 HAD ACQUIRED A MAJORITY POSITION ONCE IN CONTROL THE GERMAN RETAILER BROUGHT IN MR WOOD AN ENGLISHMAN WITH A SOLID REPUTATION FROM HIS WORK AT THE GRAND UNION CO CHAIN THE NEW BOSS ABANDONED THE A&PINEVERYTOWN STRATEGY CLOSING MORE THAN 500 STORES IN ONE YEAR HE SHUTTERED 17 FACTORIES THAT HAD SUPPLIED A&P STORES WITH THE COMPANY'S PRIVATELABEL BRANDS AND BEGAN AN AMBITIOUS STORE MAKEOVER PROGRAM A&P REBOUNDED TO POST RECORD EARNINGS IN THE MID AND LATE 1980S AND IT MADE ACQUISITIONS 70 KOHL'S STORES IN THE MIDWEST 78 FARMER JACK'S STORES IN MICHIGAN ANOTHER 160 CANADIAN STORES FROM DOMINION AND MIRACLE FOOD MART AND ABOUT 185 NEW YORK AREA STORES FROM WALDBAUM'S AND SHOPWELL/FOOD EMPORIUM TODAY THE CHAIN HAS 1245 STORES UNFORTUNATELY THE CANADIAN AND US ECONOMIES BEGAN TO CRUMBLE BEFORE THE COMPANY COULD FULLY ABSORB THE NEW OPERATIONS AND THE EXPANSION PROVED COSTLY AFTER CHALKING UP NET INCOME OF ABOUT 150 MILLION IN BOTH 1989 AND 1990 EARNINGS PLUNGED TO 70 MILLION IN 1991 LAST YEAR A&P POSTED A 1895 MILLION LOSS AS IT SET ASIDE RESERVES FOR CLOSING STORES TROUBLED INVESTMENTS AND ACCOUNTING CHANGES SALES IN 1992 FELL 1 BILLION TO 105 BILLION MOREOVER SALES AT STORES OPEN MORE THAN ONE YEAR A KEY BAROMETER OF RETAIL PERFORMANCE HAVE BEEN DROPPING FOR ALMOST TWO YEARS THE COMPANY'S STOCK PRICE HAS MIRRORED THE DECLINE DROPPING FROM JUST UNDER 70 AT THE END OF 1989 TO ITS CURRENT RANGE IN THE LOW 30S FURTHER THE EARNINGS DECLINE SAPPED CASH FLOW FORCING THE COMPANY TO SLOW ITS STORE RENOVATION PLANS AFTER ONCE SPENDING MORE THAN 300 MILLION A YEAR A&P SLASHED CAPITAL SPENDING TO 200 MILLION LAST YEAR THEY SORT OF TOOK THEIR EYE OFF THE BALL IN TERMS OF THE REMODELING AND REPLACEMENT SAYS ED COMEAU AN ANALYST WITH LEHMAN BROTHERS THEY SHOULD BE DOING AN ACCELERATED REPLACEMENT PROGRAM BECAUSE THEY ARE FACING SOME VERY AGGRESSIVE COMPETITION MOST PUZZLING TO ANALYSTS HAS BEEN A&P'S RELUCTANCE TO MOVE TOWARD LARGER STORES WHILE COMPETITORS LIKE GRAND UNION AND SUPERMARKETS GENERAL CORP'S PATHMARK OPEN LARGE STORES OF MORE THAN 40000 SQUARE FEET IT HAS TAKEN A&P MORE THAN A DECADE TO INCREASE AVERAGE STORE SIZE FROM 22504 TO 31635 SQUARE FEET A&P LOOKS AT A LOT OF THEIR STORES AND SAYS IT MAY BE TOO SMALL BUT WE'LL BE SATISFIED WITH A SECONDRATE STORE BECAUSE IT HAS GOOD CASH FLOW' SAYS MR COMEAU OTHER COMPANIES WOULD REPLACE STORES MORE QUICKLY BE MORE PROACTIVE TO IMPROVE THEIR STORES BUT A&P ALLOWS ITS STORES TO GET FURTHER DOWN THE ROAD IN TERMS OF AGE AND THEN WHEN THEY WANT TO REPLACE THEM IT'S SOMETIMES TOO LATE AND SOME COMPETITORS ARE GETTING STRONGER HAVING EASED BUYOUTRELATED BURDENS WE HAVEN'T BEEN AS AGGRESSIVE AS WE SHOULD HAVE BEEN IN THE PAST BECAUSE OF THE LBO SAYS DONALD VAILLANCOURT A SPOKESMAN FOR GRAND UNION BUT WE ARE CURRENTLY PLANNING A MUCH MORE AGGRESSIVE APPROACH FOR THE COMING YEAR STILL A&P BELIEVES IT IS ON THE MEND MR WOOD SAYS SAMESTORE SALES IN THE CURRENT QUARTER LOOK POSITIVE AND ECONOMIES FOR ITS KEY MARKETS HAVE BEGUN TO TURN AROUND CASH FLOW A CRUCIAL ELEMENT IN THE COMPANY'S REMODELING PLANS SHOULD REBOUND THIS YEAR ALLOWING FOR A PROJECTED 300 MILLION IN CAPITAL SPENDING A SUCCESSFUL MARKETING PROGRAM AT ITS CANADIAN STORES HAS IMPROVED A&P'S PERFORMANCE NORTH OF THE BORDER AND THE ECONOMY SEEMS TO BE INCHING UP IN THE NORTHEASTERN US THIS YEAR A&P PLANS TO OPEN 24 STORES CLOSE 50 AND REMODEL MORE THAN 150 IN THE NEW YORK METROPOLITAN MARKET A&P ESTIMATES THAT INDUSTRYWIDE SALES HAVE IMPROVED 2 FROM LAST YEAR WHILE ITS OWN SALES HAVE BOUNCED UP 72 A&P REENTERED THE ACQUISITION GAME RECENTLY PICKING UP THE 48STORE BIG STAR CHAIN IN ATLANTA FROM GRAND UNION BEYOND THE PAINSTAKINGLY SLOW RECOVERY MR WOOD IS UNCERTAIN ABOUT THE COMPANY'S NEXT MOVE UNLIKE SEVERAL MARKET OBSERVERS HE SEES PRIVATELABEL BRANDS FADING AS THE ECONOMY IMPROVES THOUGH SOME OF HIS DEPUTIES DON'T AGREE MR WOOD INSISTS THAT EMPHASIZING NATIONAL BRANDS IS THE KEY TO RIDING THE REBOUNDING ECONOMY WE SAW THE SAME THING WITH PRIVATELABEL POPULARITY IN THE EARLY 1980S MR WOOD SAID ONCE THE RECOVERY TAKES HOLD PEOPLE WILL RETURN TO THE NATIONAL BRANDS BUT A&P IS HEDGING ITS BETS THE COMPANY THAT ORIGINATED PRIVATELABEL MARKETING WITH ITS EIGHTO'CLOCK COFFEE BRAND IS EXPANDING MASTER'S CHOICE A HIGHEREND LINE THE VALUEADDED PRIVATE LABEL PROVIDES A BETTER MARGIN AND KEEPS A&P IN THAT SECTOR OF THE MARKET MR WOOD ALSO DISCOUNTS THE THREAT OF LARGE WAREHOUSE STORES AND CLUB STORES INSISTING THEIR STRENGTH WILL FADE AS THE ECONOMY REBOUNDS IN FACT IT ALREADY HAS STARTED TO FADE HE SAYS MOST OF OUR CUSTOMERS WILL COME BACK TO WHERE THEY WERE BEFORE HE SAYS